Emami Cement Shares Its Financial Projects For The Next Year



The cement unit of Emami’s Group said it is aiming at retail sales worth Rs 2000-2200 crore with some profit rolling in during the first full year of their operation in 2018. According to Emami’s Cement full-time director & CEO Vivek Chawla  "We are looking at 3.2 million tonnes of cement sales in 2017-18 and look forward to some profit also.”
The company is steadily increasing its market share in the six states where they are currently operating. As the current fiscal year ends, the capacity of their integrated cement plant would have gone from four million tonnes to six million tonnes. And according to Chawla "We are manufacturing cement in Raipur, Chattisgarh (mother plant) and West Bengal. By January 2018, the Odisha plant will be operational."

Tiwari said that the cement company would double their sales outlet from its current 4300 by the end of this financial year to expand its reach which would translate to a boost in their market share by 2018-19. The integrated cement plant based in Chhattisgarh was put into operation last December.
Odisha and West Bengal are both cement grinding units with a capacity of two million tonnes each. Chawla "We are getting a good response in the all the markets we are in like Chattisgarh, Bengal, Jharkhand, Odisha, Bihar (just launched) and partially Maharashtra. In Bengal's Panagarh grinding unit is producing about 40 per cent of its capacity but will be ramped up with better sales projection and sand crisis getting resolved."
According to their CEO, the growth of the company would be driven by mainly by value and the volume of their sales. Their top line is projected to reach ₹1,400-1,500 crore by the end of the present fiscal year if it can realise a sales volume of 3.2 MTPA. That is just 80% of its installed four MTPA.

In a media interaction with Business Line, Chawla said  “Usually cement companies take longer to break even. Despite being a new entrant into the segment, we are positive of making profits by next fiscal. Our debt position is also relatively comfortable.”

Emami Cement started commercial production in its Chhattisgarh integrated cement plant in December 2016 and Panagarh plant in February 2017. In the December to March quarter, they had grossed a revenue of ₹200 crore. As at August 2017, the company had a revenue of around ₹410 crore.
Retail Business

The retail section, as well as institutional sales, drive more than half of its business operations. “Though we could have gone aggressive on the volume sales by pushing down prices we did not do so. We are looking at the value segment,” Chawla said. The company’s retail share is expected to increase to 80% at the end of the current fiscal year.

Emami Cement produces PPC (Portland Pozzolana Cement) OPC (Ordinary Portland Cement), and PSC (Portland Slag Cement) variants under ‘Emami Double Bull’ brand has 7% of the market share in Chhattisgarh.

Expansion of Plants

So far, Emami Cement has invested ₹3,400 crore at its Panagarh and  Chhattisgarh plants with a further ₹600 crore on a two MPTA grinding plant at Jajpur in Odisha. The Odisha plant is expected to be completed by the end of 2019.

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