ACC to sell Almatis holding

Cement major ACC Ltd is likely to exit from Almatis ACC. The outfit based in Falta in West Bengal, is a join venture between Almatis Gmbh of Germany and ACC Ltd.

Almatis is the global leader in the development and manufacture of high quality specialty alumina products.

Almatis holds 60 per cent in the joint venture and the remaining 40 per cent is with ACC. Sources close to the company said that ACC has already initiated discussion with Almatis for selling its stake.

"The talks are on for last few months with the German multinational," the sources said.

ACC Ltd exited from International Ferrites, another joint venture outfit based at Kalyani in West Bengal, few years back. Director of ACC Ltd A C Jain told Business Standard that the cement major is contemplating to sell its stake in Almatis ACC for sometime, but nothing has been finalised.

"We are considering this for quiet sometime now. But we have not yet decided anything," he said.

Jain also not made any comment whether Almatis is buying ACC's 40 per cent stake in the specialty chemical outfit. However, the sources said that a final decision is likely to be taken by mid June.

"A board meeting of Almatis ACC is expected in last week of May or early June. The issue could be discussed there," said the sources.

Almatis has three representatives on the five member board and ACC has two.

Sources pointed out that Falta based outfit is now performing well. The turnover of the company is now close to Rs 40 crore. It is likely to touch Rs 50 crore in 2006-07.

"The company is now having double digit growth," added the sources. The Falta plant is spreading over 6.3 acres of land and started production from 1994. "It was not a very big company. But the track record of the outfit is quiet descent," said the sources.