ACC announces future price rise

ACC announces future price rise
Published: 21 May 2008

India’s ACC group, India’s largest cement manufacturer said it will increase the prices of cement after three month if the market forces and the government allow to do so.

"Showing our concern to the rising inflation, we hold the prices for two-three months but after these months we are going to increase the prices if the market forces and the government allow us," ACC Ltd Managing Director Sumit Banerjee told local reporters.

He, however, said if the government rolls back the recently announced hike in excise duty the company may not consider an increase in cement prices after three months. The government, on April 29, had hiked excise duty from specific to value-based for cement priced above Rs 250 per bag of 50 kg.

"Because of rising input cost and the present duty structure, our company is facing an erosion of one per cent EBITDA margin every month," he added. He, further, said that the profitability of all companies is under tremendous pressure in the current situation that is prevailing in the country.