INDIA: Holcim group firms' 2010 sales up 2.7%

Cement makers ACC Ltd and Ambuja Cements, which are controlled by Swiss major Holcim, have recorded a combined sales growth of 2.7 per cent in 2010 to 41.29 million tonne, over 2009.

Both the firms, however, exuded confidence that the new year would be a better one for them in the face of rising demand, enhanced capacity and better utilisation.

Cumulative sales of the two firms were 40.19 million tonne in 2009.

ACC sold 21.17 million tonne cement in 2010 and Ambuja Cements 20.12 million tonne. In the previous year, ACC had sold 21.36 million tonne cement and Ambuja Cements 18.83 million tonne, statements by the two firms showed.

An analyst, who wished not to be quoted, told PTI that till November 30, 2010, the average industry sales growth was 6.6 per cent over the corresponding period of the previous calendar year.

Holcim holds a little over 46 per cent stake in Ambuja Cements and 46.2 per cent in ACC.

Officials from both the firms declined to guess on the projected sales in 2011. However, sources in the industry said sales would certainly go up as both of them were expanding capacity and demand would certainly pick up in the year on increased government spending on infrastructure and a spurt in housing demand.

"We begin the year with the hope of a better growth and there is no apparent reason why sales would not improve in the year," an ACC official said.

Ambuja Cements' spokesperson said that company's sales would definitely be in line with the industry growth or "even better".

Production of the two firms in 2010 was 41.23 million tonne against 40.21 million tonne a year-ago. ACC produced 21.21 million tonne in 2010 and Ambuja Cements' production stood at 20.12 million tonne.

ACC and Ambuja have 30 million tonnes per annum (mtpa) and 25 mtpa installed cement making capacity respectively now. Ambuja will add 2 mtpa capacity by the year-end.

According to the analyst, ACC might record 26 million tonne sales and Ambuja at around 21.5 million tonne in 2011.

India produced 247 million tonne cement last fiscal and expects to add 29 million tonne in FY11, 24 million tonne in FY12 and 17 million tonne in FY13, according to a report prepared by Elara Capital.