ACC to invest Rs 1,100 crore in eastern region
By Our Corporate Bureau | 07 Sep 2006
Mumbai: Cement major ACC, which today notified its new name to the stock exchanges from the Associated Cement Companies to ACC Ltd, is expanding its capacity in the eastern region with investments of over Rs 1,100 crore. The investment was announced by Ramit Budhiraja, regional head (east) of the company.
He said the company planned to increase production capacity in the eastern region from five million tonnes per annum at present to 6.5 million tonnes per annum by 2008. This would involve an investment of over Rs 605 crore, he said, adding that the company would also set up around 50 ready-mix concrete plants in the region, at an investment of Rs 500 crore.
Expansion plans are proposed at Bargarh in Orissa and Sindri in Jharkhand, while the expansion programme was almost complete at Chhaibasa, Budhiraja said. He said the expansion of the company's plant at Damodar in West Bengal was also under consideration. The company has a market share of 18 per cent in the eastern region.
The projects at Lakheri for expansion of capacity and setting up 25 MW captive power plant are progressing as scheduled. Expansion of Bargarh cement works will raise capacity there from 0.96 MTPA to 2.14 MTPA. The expansion also involves setting up of a 30 MW captive power plant at a capital outlay of Rs 537 crore.
ACC, meanwhile, sold 4.63 million tonnes of cement in the April-June quarter this year as compared to 4.44 million tonnes during April-June 2005 - an increase of 4.3 per cent. Turnover is up by 21.5 per cent at Rs 1,477.47 crore during the quarter as compared to Rs 1,216.17 crore during April-June 2005.
Improved realisation and volume has resulted in higher profit before interest, depreciation, exceptional items and tax at Rs 482.08 crore during the quarter as compared to Rs 277.29 crore for the quarter April-June 2005 - up 73.9 per cent.
Profit before exceptional items and tax for the quarter increased to Rs 406.77 crore as compared Rs 196.45 crore during April-June 2005 - up 107.1 per cent. Profit after tax for the quarter increased to Rs 411.79 crore as compared Rs 148.95 crore during April-June 2005 - up 176.5 per cent. During the quarter the company also realised Rs 140.2 crore from sale of land and Rs 38 crore from sale of Mancherial cement works.