Financial Daily from THE HINDU group of publications
Saturday, Sep 14, 2002
Financial Daily from THE HINDU group of publications Saturday, Sep 14, 2002 |
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Corporate
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Outlook Gujarat Ambuja rules out capacity expansion now Our Bureau
KOLKATA, Sept. 13 GUJARAT Ambuja Cements Ltd has ruled out any fresh expansion in capacity but aims to maintain its existing growth rate, which is twice the present average Indian cement industry's growth. This was stated by Mr Narotam Sekhsaria, Managing Director of Gujarat Ambuja, while talking to newspersons on the sidelines of the All-India Management Association meet. Earlier he addressed a technical session on the manufacturing companies. According to Mr Sekhsaria, Gujarat Ambuja produced 10 million tonnes of cement in 2001-02 and in the current financial year output would be approximately 12 million tonnes. In 1986 the company began a 700,000 tonnes per annum capacity; at present the corresponding figure is 13 million tonnes. With respect to Gujarat Ambuja's interest in the cement major ACC, he said it was "just a simple investment of the company''. The relationship between the two majors would be restricted to that level. Meanwhile, Gujarat Ambuja has decided to merge its subsidiary, Ambuja Cement Rajasthan Ltd, with itself. The company was earlier known as DLF Cement Ltd. However, Mr Seksharia ruled out a similar move regarding its other subsidiary called Ambuja Cement Eastern Ltd, which was earlier known as Modi Cement. In both these companies, Gujarat Ambuja holds more than 90 per cent of the equity. Earlier, while addressing the management gathering, he discussed steps taken by the company in the last 15 years to emerge as one of the leading cement producers in the country. According to him, Gujarat Ambuja started on a survival strategy but soon identified two more targets - lowest production cost and producing the best-quality cement. In the last 15 years, the company's market capitalisation had increased from Rs 20 crore to Rs 2,500 crore. Though he was addressing a management meeting, Mr Sekhsaria summed up by saying that the business of cement is a "simple job'' and for that "no complex business or management model is necessary''.
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