Cement majors ACC and Ambuja Cement on Friday came out heavily against the government?s allegations of cartelisation in the cement industry. Reacting to the government?s measure to check cartelisation, ACC Cement said there was no cartelisation prevailing in the industry.
?Saying that there is cartelisation is an impractical statement for the industry,? said Sumit Banerjee, MD, ACC Ltd.
?The prices of cement have increased to just Rs 2.67% against rise in the inflation by 7.7%.?
Ambuja Cements MD AL Kapur said, ?There should be a fair treatment for all. The concessions given to Pakistan cement companies in India should be given to the domestic companies as well. The government should consider reducing tax rather than imposing a ban on exports.?
The government has banned cement export as part of its measures to contain inflation and boost domestic supplies. Continuous government intervention will send bad vibes about the cement sector across the globe, fears Banerjee. The companies expressed concern on rising input cost that include increase in the price of coal, power and other raw materials and logistics. Experts believe cement prices will increase if raw material cost increases, and if not passed on, margins of the companies will be affected.