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India Cements may export to Sri Lanka, South Africa

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India Cements is looking at the possibilities of exports to Sri Lanka and South African countries. However, the company says the quantum of exports would be marginal and would not offset the Indian market slowdown. The company’s move is at a time when the local market is growing at a slow pace and there is overcapacity.N Srinivasan, Vice-Chairman and Managing Director said that the company is looking at exports to countries like Sri Lanka and South Africa. There are challenges, but exports are feasible now he added.The company is expected to start exports probably to Sri Lanka first this fiscal. There are issues like higher cost of logistics and internal transport of consignments from the existing factories to the ports, which need to be addressed. Further, the company also has to meet the entry barriers in these countries, especially in the African countries, before starting exports.However, the potential for exports at present is not much. The amount of exports will be marginal. The company is not considering it as enough to offset the slowdown in demand in India and the overcapacity of the facilities, said Srinivasan.In countries like Sri Lanka, the company would look at quality of the product as a competitive edge, compared with the existing cements imported into these countries.

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