Acc In Production Rationalisation Plan

The Associated Cement Companies (ACC), as part of its drive to improve bottomline, has decided on a production rationalisation programme. The company is planning to produce at full capacity or more at all its new plants, while production will be cut at its old plants.

A K Jain, president (marketing) at ACC, said, "We are looking at maximising the capacity utilisation of our efficient plants. The balance production will be through the other plants. This is a logical thing to do considering the low cost of production in the modernised units."

The newer units of ACC includes the ones at Wadi, Gagal, Kymore and Jamul, the combined capacity of which is 10.5 million tonne. "Among the smaller units with one million tonne capacity or less, Lakheri unit in Rajasthan and the Chanda unit in Maharashtra have already been modernised," said Jain.

 

The company, in order to improve the operational efficiencies, has designed a package which besides the production rationalisation programme includes initiatives like lesser dependence on grid for power, reduction in the wage bill and improving supply chain logistics.

The company is planning to add capacities in strategic markets to maintain it leadership position in its core business. The company is in the process of adding capacities at Chanda, Madukkarai and Gagal cement plants that would contribute towards strengthening its position in north and south India. It is also making efforts to increase the share of blended cement in total production.

ACC, to reduce dependence on the grid power, has adopted the policy of maximising its captive power capabilities and increasing its thermal power generation capacity by another 37.5 mw in Wadi and by 15 mw each at Chanda and Madukkarai. It is planning to fully utilise its captive power plants at Kymore and Jamul, which were previously planned to sold off to Tata Power.

The company is also emphasising on improving its supply chain management and streamlining its distribution logistics which will yield substantial gaing considering the freight incentive nature of the business.