ACC eyes acquisition, invest Rs 4,000 cr

MUMBAI: Cement maker ACC Ltd today said it will invest Rs 4,000 crore by 2009 to increase production capacity and indicated it was open to acquire other companies for expansion.

"We will invest Rs 4,000 crore up to 2009 to add over 7.5 million tonnes per annum capacity in our existing plants from 19.91 mtpa now," ACC Chairman N S Sekhsaria said at the company's 71st Annual General Meeting (AGM) here.

Capacity expansion is currently going on in Lakheri, Tikaria, Kymore, Wadi and Sindri plants, he said, adding ACC's total capacity would go up to 23.1 mtpa by the end of the current year, once the expansion works were over.

The company also plans to augment cement grinding capacity at Madukkarai plant by 0.22 mtpa and at Bargarh facility to 2.14 mtpa along with a 30 MW captive power plant.

"These will go on stream in 2008," Sekhsaria said.

Besides, the company board has approved an outlay of Rs 1,487 crore to increase the clinkering capacity at New Wadi plant with additional cement grinding facilities in Karnataka and a captive power plant of 50 MW capacity, he said.

"This project is likely to be operational in 2009 and will enhance cement capacity in the state by three mtpa. With this, the capacity of our company will rise to 27.5 mtpa by the end of 2009," Sekhsaria said.

To a question, Sekhsaria said the company was looking constantly for acquisitions, but added "nothing is on the cards". Sekhsaria said the cement major was looking at hiving off ACC Nihon Castings, a wholly-owned subsidiary, in order to concentrate more on its core bsuiness.

ACC Nihon, which recorded a net loss of Rs 2.54 crore during the year 2006, has a state-of-the-art foundry unit at Butibori near Nagpur. It manufactures alloy steel castings for a range of processing and mineral industries.

Asked about ACC's merger of Gujarat Ambuja Cement, he said it was "not on the anvil... not in the immediate future".

Swiss cement maker Holcim controls over 38 per cent stake in ACC and 28 per cent in Gujarat Ambuja Cements.