‘IPL will help us build brand image at no cost’

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: three years, which it’s unlikely to do due to the non-availability of required coal in the domestic market, skyrocketing coal prices in the overseas markets, logistics constraints like shortage of wagons, delay in equipment supply, cost overrun and other factors. So, the demand will continue to be on the higher side, at least for the next three to five years.

There is a strong feeling among consumers that the prices will come down slightly in the future. Do you foresee prices actually coming down? If yes, when?

There may be a price fluctuation in the industry. Aberration will surely take place when the bunching of capacity takes place. It is likely to happen in those places where capacity addition is more at a given point of time. So, the price fluctuation is purely dependent upon how much capacity is added and at what time.

You said that India Cements will be doubling its capacity to 18 mt by 2011 and wants to become a pan-India player. Is it a viable option?

As explained earlier about the demand and supply gap, we believe it is a viable option for us due to various factors. We are involved in two phases of expansion. The first is to increase the capacity to 14 mt by December 2008 from 9 mt by expanding the Rassi plant, new line at Tandur in Visaka plant, setting up two new grinding units in Chennai and Parli (Maharashtra) and upgradation of existing plants.

The second phase involves setting up of two greenfield units in northern India with two million tonne capacity each. This phase also include setting up of a captive power plant of 40 mw. These volumes are expected to fall in place by mid-2010. The total investment is estimated to be around Rs 2,000 crore.

By entering into the northern region, India Cements will not only increase its market share substantially but also become a pan-India player. Our strategy is to grow slightly ahead of others at all times with better EBITDA margins. After Holcim and Grasim, we are the third largest manufacturer in India.

You offered cement to the Tamil Nadu government at a subsidised rate at a time when the commodity is garnering huge premium due to a rise in demand from across all the sectors. What was the motive behind this move?