Holcim Ltd.’s Indian cement subsidiaries said they have made no provisions for a total $422 million of anti-competition fines levied by their market regulator as they are counting on a successful appeal.
ACC Ltd. and Ambuja Cements Ltd. have filed appeals and according to their lawyers have “good grounds” to believe the appeals will be successful, the divisions said in separate notes to their third-quarter earnings statements today.
The cement-makers were fined about 194 million francs ($210 million) and 196 million francs respectively by India’s competition commission for price fixing in June. The commission asked for the fines to be paid within 90 days.
Holcim’s Indian units made up about 20 percent of Holcim’s 4 billion francs in earnings before interest, taxes, depreciation and amortization last year and sold 45 million metric tons of cement, according to a Holcim presentation.
It may take between two and four years for a final appeal hearing, an official at the Builder’s Association of India, which is opposing Holcim in the case, said July 9.