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ICL to hive off shipping arm, absorb Raasi's cement division

India Cements Limited is finalising an arrangement to spin off its shipping division into a separate company and merge the cement division of Raasi Cement Limited with itself, N Srinivasan, vice-chairman and managing director, said.

India Cements stands to benefit immensely from the capacity expansions and market rationalisation effected during the year.

Though 1997-98 was not a good year for the cement industry, India Cements was able to record satisfactory results, Srinivasan said.

The company's performance in the first half of the current fiscal has been satisfactory, with total sales and other income at Rs 5.04 billion, registering a 6 per cent growth over the corresponding period last year, he said. The operating profit increased to Rs 1.16 billion, representing a 9 per cent growth over the corresponding period last year.

The net profit, however, declined to Rs 256.7 million as against Rs 470.8 million last year. This was mainly because of a larger outgo on interest and depreciation consequent to the heavy investment in capacity additions during 1997-98, he said.

UNI

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