ACC expects a modest recovery in the economy this year to have a positive impact on infrastructure, housing and construction sectors, thus increasing the demand for cement.

Addressing shareholders on Friday, NS Sekhsaria, Chairman of ACC, said starting with a sluggish industrial production last year the economy got a boost with a new stable government, which has helped improve overall business sentiments. With the inflation slowing down, the economic environment looks better in the year ahead, he added.

The company would continue to focus on cost reduction, increasing the sale of premium products and other customer excellence initiative to improve the company’s performance, he said.

ACC expects to commission the new grinding unit at Jamul in Chhattisgarh this year and another one coming up at Sindri in Jharkhand will be completed by first quarter of next year.

Holcim-Lafarge merger

Answering investors query on the proposed merger of Holcim and Lafarge impact in India, Harish Badami, Managing Director, ACC, said the proposal is pending for regulatory approval in the US, Canada and India.

Incidentally, the merger deal, which was stuck on valuation and other issues, was renegotiated and put back on track with both the companies agreeing on new terms on Friday.

Badami further added the Holcim plan to restructure its holding in India under Ambuja Cement is waiting for Foreign Investment Proposal Board approval.

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