Mangalam Cement announced early afternoon that the Government of Rajasthan has granted an exemption of tax up to 75% in respect of goods manufactured and sold in Rajasthan by its second unit as well as that sold in the course of inter-state sales. The company had an earlier exemption of 25% on tax liability in respect of goods manufactured and sold in the state of Rajasthan and 75% of the tax liability for the goods sold in the course of inter-state sales. The new exemption criterion will be available till 4 April 2005.

The company can look forward to an improvement in financials as a result of this exemption. It is currently loss-making.

For the second quarter ended 31 March 2003, the company extended its losses to Rs 11.71 crore (Rs 9.24 crore) on a 3% fall in net sales to Rs 57.45 crore (Rs 59.05 crore).

Incorporated in October 1976, Mangalam Cement was promoted by Kesoram Industries & Cotton Mills, Century Spinning, Grasim, Pilani Investment Corporation and the Rajasthan State Industrial & Mineral Development Corporation (RIMDC). It is a part of the B K Birla group. The company manufactures ordinary portland cement and pozzolana portland cement by the dry process, and has its plant at Morak, district Kota, Rajasthan.

To reduce power costs associated with cement manufacture, the company is planning to install a thermal power plant of 17.5 MW capacity. This project will come under the rehabilitation package to be submitted to financial institutions . The company made a reference to BIFR to declare itself a sick company.

As on 31 March 2003, the promoters held 35.63% stake in the company, while institutions and the public held 22.97% and 32.48% stake respectively.