India Cements acquires coal mine in Indonesia
India Cements has reportedly acquired a coal mine in Indonesia for $20 million, which is expected to go on stream by January 2012. According to reports, India Cements is also in the process of setting up a 50 Megawatt power plant near Tirunelveli in Tamil Nadu. Sluggish growth of cement, increase in fuel and power cost, higher interest rate is the concern of the company and the industry as well. While the input cost have increased 7-8 per cent output cost rose only 2 per cent.
N Srinivasan, vice chairman and managing director, India Cements
was quoted as saying "The coal mine acquisition is a strategic decision, it will reduce our exposure to the fluctuating coal price internationally. Despite a 4 per cent fall in demand across south India, the company managed to post good profit. Its capacity utilisation was around 68 per cent, due to the excess capacity in South India, which is currently around 100 million tonnes."