A worker unloads a sack of cement from a freight train in Mumbai, India (Photographer: Kuni Takahashi/Bloomberg)

Sanghi Industries Expects Capacity Utilisation To Reach 75% By FY19-End

Cement maker Sanghi Industries Ltd. expects its capacity utilisation to pick up in the second half of the current financial year.

“Typically the first two quarters account for 40 percent of the full year volume, while the last two quarters bring in the rest. Currently, we are clocking 65-70 percent capacity utilisation, which by the year-end I’d expect to go up to 75 percent,” Wholetime Director Bina Engineer told BloombergQuint in an interview. The company is on track to clock about 3-3.2 million tonnes output in the financial year 2018-19, she added.

Despite higher utilisation, margins are likely to remain under pressure due to rising diesel and energy costs, said Engineer.

Watch the interview here.