Acc To Focus On Advanced Materials Segment
The Rs 2,414-crore company has already invested Rs100 crore in this high technology business over the the last two years to produce soft ferrite and synthetic ferric oxide. Plans are also under way for an advanced materials complex at Salt Lake City in Calcutta.
The Rs 90-crore complex, spread over eight acres, will produce quartz crystal resonators, microwave ferrite and diamond coating materials.
ACC has tied-up with world leaders for each of these products. For microwave ferrite, it has a technical collaboration with Hiltek Materials of UK, while Advanced Refractory of the US will provide the expertise for diamond coating. For quartz crystal, it has tied-up with Euro Quarz GmbH of Austria, a subsidiary of the DM 250-million Tele Quarz of Germany. In the new company, ACC Quarz, the overseas partner will hold 49 per cent stake, and ACC the balance 51 per cent.
Says AK Chatterjee, director of ACC: FIPB clearance is expected in the next two weeks. The construction work at the new plant will start by October and the complex will be ready in 18 months.
Advanced materials are high-performance materials. They are produced in low quantity but have longer durability and find application in hi-tech industries. Microwave ferrites are used in advanced weapons systems and are much in demand in the defence industry.
Diamond coating material is used for strengthening surfaces and is a revolutionary product in the field of surface engineering, while quartz crystal resonators form an important component of the electronics sector. ACC will produce high specification grade quartz catering to telecom and satellite industries.
Soft ferrite is used in television sets, telephones, electronic switchgears and computers. All electronic gadgets use soft ferrite, says Chatterjee. In fact, every car in Japan has 25 pieces of soft ferrite.
This is a fast- growing industry the world over, moving from $3.5 billion in the mid-eighties to $31 billion in 1991. By 2000 it is expected to touch the $100-billion mark.
Sensing an exponential growth in this area, ACC has mapped out an investment strategy till 2005. This is a part of the company's core competency, says Chatterjee.
The company has an alliance with Siemen-Matsushita of Germany for the manufacture of soft ferrite at Kalyani, Calcutta. In this venture, ACC holds 49 per cent stake, Siemens Matsushita 26 per cent, Siemens India 15 per cent. The balance is held by the West Bengal Electronics Development Corporation.