Cement major ACC today said its brand name will remain intact after its Swiss parent Holcim merged with the French major Lafarge.
Lafarge and Holcim announced a global merger last Monday creating a USD 60 billion company which will be the largest cement maker in the world.
Holcim holds 50 per cent equity stake in ACC. The merged entity will become the largest cement producer in India with a capacity of 69 million tonne 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 here.
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 LIC, which holds 8.20 per cent 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 result was adversely affected due to sluggish economic environment last year which hit volume and sales. EBITDA dipped 26 per cent and consolidated profit after tax was up only 3 per cent.
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.
