CHENNAI: India Cements has entered into an agreement with UltraTech Cement of Aditya Birla Group to sell its 73.75-acre land at Kantakapalle and Chinnipalem villages in Vizianagram district of Andhra Pradesh.
The deal is valued at Rs 70 crore. This is part of the company’s plan to monetise some of its non-core assets to improve its liquidity and to meet a few of its capital expenditure plans, India Cements said on Thursday in an exchange filing. India Cements posted a net loss of Rs 75.25 crore in the June 2023 quarter, its third straight loss.
It is facing a cash crunch and working out plans to increase profitability and revamp older plants. The cement manufacturer needs Rs 150 crore in working capital and Rs 250 crore for capital expenditure, as per its managing director N Srinivasan.
He said the firm will attain profitability by next year, during his interaction in August. Earlier it planned to raise funds by selling parcels of land in Tamil Nadu to meet capex needs, but didn’t realise. “We are focused on lifting the fortunes of our core business, cement. We know the cement industry the best. The company has copious limestone deposits,” he said at India Cements 77th AGM held on Thursday.