Optimistic about future despite Covid-19 situation: Ambuja Cement

Ambuja Cement is "optimistic about its future" despite disruptions caused due to the coronavirus pandemic, a senior company official said on Friday.

Terming the impact of Covid-19 on its business as "temporary", Ambuja Cements Director Martin Kriegner said the company, which is part of the LafargeHolcim group, is positive about its growth.

Several recent initiatives announced by the government for infrastructure and rural sectors are expected to boost the demand from those quarters, he added.

"The company is optimistic about its future despite the Covid-19 situation. The recent initiatives by the government will help resurgence of rural demand and infrastructure projects, including affordable housing," said a company statement quoting Kriegner.

He was addressing shareholders at the company's annual general meeting (AGM) through video-conferencing.

Ambuja Cements also got shareholders' approval for the appointment of Neeraj Akhoury as its managing director and chief executive officer, it said.

The company's greenfield expansion project at Marwar Mundwa in Rajasthan is progressing as per schedule and expected to commence operations by next year, it added

"This project will add about three million tonne of clinker to produce 4.5 million tonnes more of cement," it said.

Highlighting Ambuja Cement's performance in 2019, Kriegner said the company's net sales increased 3.4 percent to Rs 11,353 crore.

"Currently, all Ambuja Cement plants and grinding units are operating while continuing to maintain strict health and safety protocols," the statement said.

Ambuja Cement is a debt-free company and has sufficient cash reserves to meet its financial obligations, with a comfortable liquidity position, it added.

It has a cement capacity of 29.65 million tonnes per annum with five integrated cement manufacturing plants and eight cement grinding units across the country.