Price freeze to erode margins: ACC

Price freeze to erode margins: ACC
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First Published: Fri, May 09 2008. 10 34 AM IST
Updated: Fri, May 09 2008. 10 34 AM IST
Reuters
New Delhi: Indian cement maker ACC Ltd said its margins will be hurt by a decision to hold its prices for 2 to 3 months that was taken after the government asked cement firms to help contain price pressures.
“This price freeze will erode the company’s margins,” ACC Managing Director Sumit Banerjee said in a statement issued late on 8 May, adding that the firm was taking all steps to maintain production at peak levels.
ACC, about 41% owned by Swiss cement maker Holcim, also said it would talk to the government to explore viable solutions to combat inflationary trends that have led to increase in input costs.
Junior industry minister Ashwani Kumar said on 8 May that the government had got assurances from cement firms on price cuts and that a request for tax relief to cement firms had been submitted to the finance ministry.
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First Published: Fri, May 09 2008. 10 34 AM IST
More Topics: ACC | Prices | Cement | Cartelization | Inflation |