Ultratech Cement Has Sought Government Assistance for The Cement Industry

India s largest cement maker, UltraTech Cement, has sought Government assistance for the cement industry to help it come out of the challenging times posed by soaring operational cost and slowing demand. Kumar Mangalam Birla, Chairman, UltraTech Cement, said the outlook for the cement industry remains challenging with the slow pace of housing and infrastructure stalling the growth. "We look up to the Government to support the cement industry and ensure growth through initiatives like reducing the tax burden and ensuring availability of linkage coal, " he said. Birla also said the company has not indulged in any sort of activity that could be termed as cartelisation. "There are 47 players in the cement industry. No cartelisation is possible with such a level of disintegration. No hard evidence is available to show that the industry has indulged. The case will not stand without hard evidence, "he said. He also assured that the company was well protected against the cartelisation charges levied by the Competition Commission of India. He pointed out that the recent hike in cement prices could be attributed to the steep rise in coal prices by 150 per cent, along with a hike in diesel and railway freight. Capital costs have also gone up. "The increase in cement prices does not make up for incremental cost"he said. The slowdown in private investment spending was because sluggish demand, high interest rates, slower approvals and clearance from Government. "I believe the short-term prospects for the cement industry appear bearish. Regardless, over the medium to long term, the sector offers good growth potential, " he said. Source: uaecement