BackACC to retain brand name post-Holcim-Lafarge merger
Holcim holds 50% equity stake in ACC
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Mumbai: Cement firm ACC Ltd on Wednesday said its brand name will remain intact after its Swiss parent Holcim merged with the French firm Lafarge.
Lafarge and Holcim announced a global merger last Monday creating a $60 billion company which will be the largest cement maker in the world. Holcim holds 50% equity stake in ACC. The merged entity will become the largest cement producer in India with a capacity of 69 million tonnes (mt) per annum. “The merger will be beneficial for the cement industry and ACC. The brand ACC will remain intact and there is no question of ACC brand name changing to Lafarge," ACC chairman N.S. Sekhsaria told shareholders at the company’s 78th annual general meeting in Mumbai.
It’s a merger of equals and the process will take about 16-18 months to complete, he said and sought to allay apprehensions of the shareholders, saying the company is in good hands. Several worried shareholders have urged Life Insurance Corp. (LIC), which holds 8.20% in ACC, and independent directors to safeguard their interests and prevent any possible takeover by the foreign parents. To a query on performance, Sekhsaria said ACC’s result was adversely affected due to sluggish economic environment last year which hit volume and sales. EBITDA (earnings before interest, taxes, depreciation, and amortization) dipped 26% and consolidated profit after tax was up only 3%. However, he sounded optimistic going forward. “We believe the low growth scenario has largely bottomed out and we expect to see gradual improvement from later this year." The work on the ongoing expansion in eastern India is making good progress and will be completed in 2015, he added.
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