ACC, Ambuja Cements shares rise up to 4%. Here’s why

The companies had stopped operations in Himachal Pradesh in December after failing to find a solution to soaring transportation costs.

“All the stakeholders have come together and amicably resolved the ongoing discussions on the freight rates in Himachal Pradesh. In line with our commitments, both ACC and Ambuja Cements will resume operations effective tomorrow (Tuesday) at the Gagal and Darlaghat plants,” Adani Cement said.

The new freight rates finalised with transporters for single axle trucks of 12 tonnes would be Rs 10.30 a tonne per km for Ambuja Cements’ Darlaghat plant and ACC’s Gagal plant as compared to earlier rates of Rs 11.41 for Gagal and Rs 10.58 for Darlaghat units earlier.

The new rates for multi-axle 24-tonne trucks would be Rs 9.30 a tonne per km for both units. This will result in an overall reduction of 10-12% in the freight rates benefiting the customers of Himachal Pradesh, Adani Cement said.

“The Gagal and Darlaghat units of ACC & Ambuja Cements are one of the largest industrial units in the state and play a vital role in providing employment & contributing to the economic viability of the state. The reopening of plants will help in the economic, social and overall development of the state,” said a spokesperson of Adani Cement.

The freight rates are as per the guidance provided by the relevant government authorities, the spokesperson said.At 10.12 am, shares of Ambuja Cements were trading 2.7% higher at Rs 363 over its previous day’s closing price of Rs 353.3 apiece. On a year-to-date basis, the stock has fallen over 30%. Meanwhile, shares of ACC were trading nearly 1% higher at Rs 1,867.

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