The Hindu Business Line : ACC investing Rs 4,000 cr for capacity expansion

Mumbai March 28 ACC Ltd will spend Rs 4,000 crore over the next three years to expand its cement capacity to 27.5 million tonnes from 19.91 mt now, the Chairman, Mr N.S. Sekhsaria, told the company's shareholders on Wednesday.

The investments include Rs 1,487 crore to increase the clinkering capacity at the new Wadi plant, additional grinding facility and a captive power plant of 50 MW in Karnataka.

In addition to this, the cement grinding capacity of Madukkarai plant in Tamil Nadu and Bargarh in Orissa would be augmented by next year. The capacity expansion and modernisation of Lakheri plant in Rajasthan would be completed by next month, he said at the company's annual general meeting.

These expansions will add more than seven mt capacity by 2009. The company has no plans to go in for any greenfield project, he said.

Responding to a question on cement prices, Mr Sekhsaria said even if the prices are held at the current level, it would not adversely affect the company's performance.

The Government has been appealing to cement manufactures not to increase prices. According to reports, manufactures did not agree to a price cut at a meeting with Finance Minister recently.

ACC is now in the fold of Swiss cement maker, Holcim, which holds 37 per cent equity in the company. Holcim also controls Gujarat Ambuja from whom it first bought 14.4 per cent stake in ACC.

Gujarat Ambuja merger

When asked whether there is any plan to merge Gujarat Ambuja and ACC, Mr Sekhseria, who had sold his (promoter) stake in Gujarat Ambuja to Holcim, said "there is no plan to merge the companies at the moment."

He said Mr Sumit Banerjee, who was appointed in January as CEO designate of ACC, will take over as Managing Director from April 1, replacing Mr M.L. Narula will be completing his term as Managing Director on March 31.