Petcoke ban will only increase our costs, won't derail us: ACC Cement

Company says its plants have flexibility to use alternative fuels; Seeking to curb pollution, Supreme Court had imposed the ban in UP, Rajasthan, and Haryana

The ban on use of imported petroleum coke (petcoke) in the national capital region (NCR) will not derail operations of ACC Cement, said a top company official on Tuesday here.

 
“Petcoke has come across as a good fuel. The sulphur content in the fuel is neutralised with limestone by cement makers. But, it (the petcoke import ban) will not act as a derailer, though it will increase the cost. All ACC plants have the flexibility to use alternative sources of fuel," said Neeraj Akhoury, managing director & chief executive officer at ACC Ltd, part of the LafargeHolcim Group.
 
The evironment ministry in a notification on last Friday had banned the use and sale of imported petroleum coke in the national capital region, in the latest effort to curb air pollution. In December, the Supreme Court had allowed the cement industry to use petroleum coke, after it was temporarily banned as pollution levels shot up in Delhi.
 
ACC Cement, on the other hand, is upbeat on positive impacts of the goods & service tax (GST) on the domestic cement sector. With 10 variants of cement products and ready-mixed products in its portfolio, ACC Cement has 10 per cent market share by volumes in the sector.
 
“The GST had a very little impact on the cement sector in the first two months of its implementation. We believe in the long term and the GST implementation will augur well for the sector”, Akhoury said.
 
He said the cement sector has been growing on a par with the country's GSDP (gross state domestic product) and ACC Cement will like to grow with the market.
 
On expanding footprint, he said, ACC Cement had earlier invested ~6 billion on a cement plant in Bargarh (Odisha) and more recently, it expanded its unit at Raipur.
 
The cement maker is open to both organic and inorganic growth options.
 
“Organic or inorganic, we evaluate every opportunity if it brings value to our shareholders," said Akhoury.
 
ACC has 17 cement plants across the country with 21 sales offices, and a workforce of over 8,000. In the eastern region, the company has three integrated plants, two grinding units and nine ready-mixed concrete plants.
 
“East has always been a strategic market for us. After we took over IDCOL Cement in 2004, it has added immense value to our portfolio. Consumers in the east are keen for premium products," he added.
ACC launched its latest product, F2R SuperFast meant for addressing specific consumer needs and local conditions.