ACC plans Rs 3,600cr expansion

ACC has lined up Rs 3,600 crore investment to augment capacity to 32 million tonne (MT) by 2010 from the present capacity of 22 MT per annum.

Sumit Banerjee, managing director, ACC, said: "We would take our capacity to 32 MT per annum by 2010 entailing an investment of Rs 3,600 crore. All the investment would be done through internal accruals."

The capacity expansion of the Mumbai-based firm would be carried out at its existing plants. About Rs 1,400 crore would be invested in the expansion of its Chanda unit from one MT per annum to four MT per annum. It will also include a captive power plant of 25 Mw.

The expansion of the new Wadi plant to four MT per annum from the current one MT per annum would account for an investment of around Rs 1,500 crore.

The expansion of the company's Bargarh plant by 1.18 MT per annum would entail an investment of Rs 523 crore. The capacity augmentation of ACC's grinding units at Madukkarai and New Wadi would together require about Rs 110 crore.

Banerjee ruled out the possibility of an association with or acquisition of any cement manufacturer overseas. "There is tremendous opportunity within the country. We first want to exploit that," Banerjee said.

The company is also in the process of setting up a bulk cement terminal in Pune with a capacity of 700,000 tonne per annum. It would be later increased to one MT per annum.