It gives us immense pleasure that even after 75 years, we are still relevant. We started with a capacity of 1 lakh tonnes per year and have gone up to 16 million tonnes. When I entered the industry in 1968, it was under price and distribution control. It was partially decontrolled in 1982 and fully decontrolled in 1989.
I've had the privilege of working with India Cements from the days when cement was under price and distribution control and entire capacity in the country was hardly 20-30 million tonnes; then, we had partial decontrol and then total decontrol in 1989. Today, capacities are closer to 400 million tonnes. Cement is a success story of decontrol. India is the 2nd largest cement producer after China and ahead of the USA.
I think FY22 will see a double digit growth over FY21. The South also is growing quite sharply. There are multiple indicators.
First, on ground cement that is being consumed by infrastructure is incredible. In addition you have private sector housing that is taking a lot of cement
This is the start of our Company’s 75th year of existence. Over the many years that have gone by, not many companies have withstood the test of time and are still active in a robust fashion. India Cements is one such Company.
Seventy-five years is a long journey in the history of any organisation. Not many in the Indian corporate history have survived this long. That India Cements is celebrating its platinum jubilee this yearis a huge tribute to the entire family.
India Cements represents the story of the country from the time we became Independent to now.
I do have the pride and a sense of achievement. Pride because, in 1942, one of the founding fathers stumbled over a stone. He found that to be a limestone. And, he found that it could be used to make cement.
The path-breaking and outstanding Budget for 2021-22 presented by Finance Minister, Mrs. Nirmala Sitharaman, has its focus on development. It seeks to address the needs of the nation and envisages spending lot of money on development in every sphere including on infrastructure and housing.
Although the Union Budget for 2021-22 is expansionary with higher fiscal deficit of 6.8%, it is needed in today’s context and it is good for the people. With its thrust on capex and with higher outlays on healthcare, roads, railways and infrastructure, the Budget has combined and addressed the needs of today. As such, the economy was slowly coming out of the pandemic era and this increased capex will accelerate the recovery. If the promised capex on infrastructure, roads, metro, and railways take place, I see substantial increase in demand for cement. We canlook forward to a good 2021-22.
Budget will spur growth. For that, capital is needed as we can’t go to commercial banks for everything. Manufacturing industry, in particular needs a development finance institution. It has been announced in the Budget, which is very good and it should be speeded up.
Southern States which account for more than 1/3 rd of India’s limestone deposits have the potential to become a cement hub for future development across India as well as exports.
India has emerged as a big market for manufactured products and services. India is also a significant exporter of Information Technology. In the last 10 to 15 years, India has seen a big transformation, especially under the leadership of Prime Minister, Shri Narendra Modi.
“India is marching ahead to become self-reliant with a strong manufacturing base. India is the second largest producer of cement after China and everything is made in India and the building material will be in demand for hundreds of years. Like cement, India has the scope for becoming a manufacturing hub for a number of products.
The decisive mandate won by the NDA led by Prime Minister, Narendra Modi clearly showed that the people of India have placed their abundant trust in his strong leadership for giving them a performing and reforming Government in the last five years.
The Budget presented by Finance Minister, Nimala Sitharaman has sought to fulfill the great expectations and aspirations of the people of India from the Government in the second term.
The NDA government is on right track. Certainly, it will continue to be pro-development. We expect the government to continue its thrust on infrastructure development and housing.
“The Cement industry has a lot to be proud of and has been a silent achiever, never boasting about itself or displaying its true strength and achievements. Today, our cement industry is as good as any in the world and our technology is outstanding. The industry is one of the largest contributors to the national exchequer, it cares about the environment and concerned about the welfare of the people who work in it. While currently the cement industry is undergoing challenges, the future looks bright over the next five years and outstanding in the next 10 years".
I am not talking from my air-conditioned room. I was out in the market, meeting dealers, asking them questions. In fact, until I ask about demonetisation, they don't talk about it at all. It is all behind them. People have not realised that the trade is adapting very well to this demonetisation. They are finding ways to continue their sales. It is their bread and butter. He may sell 40 to 50 bags a day, he wants to complete that sale and so he will somehow find a way to do it.
The prime task before the new government will be to put the economy back on track and regain the business confidence. It should give top priority to infrastructure development and ensure completion of pending projects. This will go a long way in reviving the investment climate, economic activity and start generating jobs.
Definitely, the results ( Lok Sabha) are good for the country; It will give a stable Government at the Centre and it will certainly revive the economy.
