Friday, 20 December 2013 00:01
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TOI (Chennai): Leading cement manufacturers from South India have started exports to Sri Lanka or are increasing their monthly dispatches, in a bid to participate in the post civil war reconstruction in Sri Lanka.
Among the cement makers who have established their presence include The India Cements, Ramco Cements and Dalmia Cements.
For the southern cement manufacturers, who are reeling under massive capacity overhang, this small export opportunity appears as a hedge, unfortunately, a very small one. The depreciating Indian rupee during the July-September period also helped cement makers.
“We sent some 10,000 tons to Sri Lanka during the July-September quarter. The strong dollar helped. But with rupee gaining some lost ground, the profit window has reduced,” said N. Srinivasan, MD of India Cements during the earnings call a few weeks ago.
While it is learnt that India Cements and Dalmia Cements have started exports to Sri Lanka recently, Ramco Cements has increased its exports to the neighbour nation.
“Post war reconstruction activities have increased opportunities for cement offtake. Normally we dispatch around 6,000 tons a month, which has now been increased to 10,000 tons,” A.V. Dharmakrishnan, MD of Ramco Cements, said.
Ramco, he said, has been exporting to Sri Lanka for nearly 15 years. “We exported cement to Lanka, even when there was a war,” he added.
The Asian Development Bank’s Asian Development Outlook (ADO) 2013 update retains the projection for GDP growth in 2013 at 6.8% and in 2014 at 7.2% for Sri Lanka.
Most of the cement makers who export to Sri Lanka have their plants around Dalavoi-Alathiyur-Dalmiapuram cluster. For instance, India Cements’ factory is in Dalavoi while Ramco Cements is the next door neighbour to India Cements at Alathiyur. Dalmia Cements’ plant is in Dalmiapuram. All these cement markers use Marg’s Karaikal port to ship out cement.
“We are experiencing a strong growth in cement exports from the port,” Karaikal Port’s Executive Director M.L.N. Acharyulu said.
