The merger of Swiss cement majors Holcim and Lafarge to create the worlds largest cement company is going

to be beneficial to the Indian cement industry, ACC and Ambuja, according to Narottam Sekhsaria, Chairman, ACC. ACC and Ambuja Cement are 50 per cent-owned by Swiss cement major Holcim which, on Monday, jointly announced a merger with the other global cement major Lafarge. Mr. Sekhsaria was addressing shareholders at ACCs 78{+t}{+h}annual meeting, several of whom expressed apprehensions about the fall-out of the mega merger on ACC to the chairman. There seems to be a lot of apprehension about the merger of Holcim with Lafarge. I can assure you that in my experience as chairman, Holcim has brought about a lot of positive changes in the company. As long as the board remained, the interests of all minority shareholders would be taken care of, he said. After nine years of working with Holcim, they have not made any suggestions that are unfair to minority shareholders. ACC is in good hands so please set your apprehensions aside. I assure you that the ACC brand and company will remain and not go to Lafarge, Mr. Sekhsaria said on being repeatedly questioned by several shareholders. Through various initiatives in 2013, ACC saved Rs.165 crore which offset increase in input costs, K. K. Kaura, CEO & MD, ACC. ACC reported marginally lower volumes, sales and operating profit in 2013. On the performance, the chairman said, In the last five years, the cement industry went through a bad patch. I assure you that we are improving and ahead of competition. The benefits we get from Holcim will make us more competitive in the years to come. On why capacity utilisation was 78 per cent in 2013, he pointed out that it was the most adverse passage in terms of environment and things have bottomed out and must change. Every cement company had its lowest realisations and lowest return on capital employed (RoCE). We anticipated growth and when it did not happen, utilisation was lower. On why ACC had paid Rs.107 crore to Holcim as technical know-how fees, Mr. Sekhsaria assured that it was the lowest charged by any international company. Companies normally charge 2-5 per cent as fees. Holcim had requested higher fees but independent directors said that anything above 1 per cent would not be appropriate and they agreed.