ACC Concrete, a subsidiary of cement major ACC, has put on hold its 'extensive' expansion plans for the current year.
"ACC Concrete is taking steps to improve its performance in the current financial year, 2009. The extensive expansion plans have been put on hold for 2009," ACC said in its Annual Report 2008.
"Focus shall be on consolidiating the existing business, whilst continuing to grow volumes from the current base of available 38 batching plants as well as from dedicated onsite project solutions," the report said without explaining the rationale behind putting expansions on hold.
Interestingly, ACC had transferred its ready-mix concrete business to ACC Concrete with effect from January 1, 2008 "to operate the business and carry out the planned expansion in the most effective manner".
With the number of production units increased from 23 to 38, ACC Concrete recorded a 37.4 per cent growth in sales in 2008 over the previous year. It clocked a net loss of Rs 96.81 crore.
The current plant capacity of ACC Concrete is more than seven million cubic meters per annum from batching plants based in all of the main cities across India.
ACC, however, believes that ACC Concrete was well-placed to add value to the group companies in both the immediate challenging times and well in the future.
