Acc Seeks Govt Funds For Convertor Venture
Cement major Associated Cement Companies (ACC) has submitted a proposal to the Technology Development Board, a central government undertaking, seeking financial help for setting up a model demonstration plant for making catalytic converters.
If successfully commissioned, the plant will make ACC the country's first producer of catalytic converters.
It may be mentioned that ACC has been working closely with major two and three wheeler manufacturers of the country to try and develop a catalytic converter for the two- and three-wheeler range.
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ACC's research and development centre has been working on this project for developing a rechargeable catalytic converter for the last couple of years.
The converters have also been subjected to road trials and have proved effective.
With emission control norms becoming more and more stringent, the demand for catalytic converters is expected to increase in future. Catalytic converters are mostly imported today.
The move is a part of the company's diversification strategy. Having realised the difficulties of being a largely single product company in recessionary market conditions, the company had decided to diversify into mining, advanced materials, refractories besides catalytic converters.
In advanced materials the company is developing synthetic ferric oxide and soft ferrites, which are used to produce electronic and telecommunications components.
ACC's refractories business, had remained largely under-utilised, and hence the company plans to sell more of its range of refractories to outside customers.
Realising the country's dependence on imports in the advanced material business, ACC has commissioned a plant with a 10,000 tonnes per annum (tpa) capacity - the largest in Asia, outside Japan - to produce soft ferrites.
Set up with three other partners - Siemens-Matsushita (stake: 26%), the Rs 1,175 crore Siemens India (10%), and the West Bengal Electronic Development Corporation (14.8%) - ACC itself holds a 49.20% stake in the company.
The company is also developing a facility for the manufacture of microwave ferrite unit (for radar systems and rockets) and a diamond-like coating material venture at a Rs 40-crore investment.
ACC also plans to invest Rs 100 crore for exploration of diamond, gold and base metals over the next four to five years.