ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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ACC-Modernisation Programme

ASSOCIATED CEMENT COMPANIES (ACC) is going ahead with its optimisation and modernisation programme. Conversion of the Madukkarai cement works from wet to semi-dry process at an outlay of Rs 42.4 crore is well in hand. The project, being implemented with World Bank assistance, would result in much lower energy consumption as well as an increase in capacity from 3.77 lakh tonnes to 5.20 lakh tonnes. The company will soon embark upon conversion of the Shahabad unit from wet to dry process involving a capital expenditure of Rs SO crore. Optimisation at Wadi plants (phase I and II) on the basis of recommendations made by Mitsubishi Mining and Cement Company to achieve substantial improvements in production and saving in energy consumption is also under way. Other optimisation schemes have been approved for implementation at Jamul, Chanda and Gagal for which a total outlay of almost Rs 27 crore has been earmarked. These schemes have a very short gestation period and the returns are expected to be high and quick. The programme for modernisation of other units will be taken up at an appropriate time in the company's growth. Giving this information in his annual statement, N A Palkhivala, chairman, has said: "I look forward to the future of your company with justified optimism. There is every hope that the synergic effect of our various efforts will be to make the current year and the future brighter than the year under review." During 1986-87, the company suffered a setback. Production of grey cement was lower at 79.01 lakh tonnes against 79.44 lakh tonnes in the previous year and sale also decreased to 78.93 lakh tonnes from 79.22 lakh tonnes. The main reasons for lower production and sale were suspension of operations at Dwarka Cement Works, heavy power cuts mainly in Andhra Pradesh and Karnataka, short supply of coal, overhaul of turbine of the 25 MW captive power plant at Wadi cement works, coupled with implementation of optimisation programme at that works. Gross profit declined from Rs 36.59 crore to Rs 33.84 crore in spite of higher sales of Rs 562 crore against Rs 558 crore, reflecting contraction of margins. Net profit dwindled from Rs 861 lakh to a more Rs 34 lakh. Dividend has been slashed from 17 per cent to 10 per cent, most of which would be paid from past earnings; last year's distribution was covered 1.27 times by earnings.

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