ACC to raise $100 m for acquisitions, expansion

Associated Cement Companies (ACC) is set to raise $100 million to meet fund requirements for acquisitions as well as expansion.

A K Jain, executive director, ACC, said, "The company's board has approved the decision to raise these funds for long-term requirements. However, at this juncture, the company is not in a position to comment when they would be raised."

The funds could be raised from the domestic as well as the foreign market, Jain added. "The funds could be raised through the equity or the debt route or both. We will take a decision on this as when the funds are required," Jain said.

The company will be utilising these funds for acquisitions as well as for upgradation of some of its plants, he added.

The company had earmarked Rs 275 crore earlier this year for acquisitions and for funding the ongoing capacity expansion and modernisation at Chaibasa. After the proposed expansion at Chaibasa is completed, the company's total installed capacity will stand enhanced to over 18 million tonne per annum.

ACC's reserves and surplus as on March 31, 2003, stood at Rs 905.6 crore, while total debt in the financial year 2002-03 was at Rs 1,404.75 crore.

ACC registered a net profit of Rs 94.34 crore in the nine-month period from April 2003 to December 2003, against a net profit of Rs 45.17 crore in the corresponding period of the previous year. The company recently acquired a 86.79 per cent stake in Idcol Cement for a consideration of Rs 176.4 crore.

ACC has also planned to double the capacity of Idcol's one million tonne plant at Bargarh.