Pallonji New Acc Chairman

Palkhivala made chairman emeritus, Harish Mahindra quits

The curtain came down on a 28-year saga yesterday as Nani A Palkhivala retired from the post of chairman of Associated Cement Companies (ACC), the countrys largest cement maker.

At a board meeting held just before the companys 61st annual general meeting, ACC appointed Pallonji S Mistry as the new chairman. Mistry, the longest serving director on the ACC board, was formerly the deputy chairman. Palkhivala took over as the chairman emeritus and will continue on the ACC board.

At a packed meeting in south Mumbai, another director, Harish Mahindra (father of M&M managing director Anand Mahindra) also quit as a company director. Palkhivala also informed shareholders that Darbari Seth had resigned from the ACC board on health grounds. No decision has been taken on their replacements.

 

An eminent jurist and Constitutional expert, Palkhivala took over as ACCs chairman in 1969. He has remained at the companys helm since, except for a two-year hiatus in 1977-79, when he was appointed Indias ambassador to the US.

Pallonji S Mistry became an ACC director in April 1956, and was appointed its vice-chairman in 1969. Mistry stepped into Palkhivalas shoes as ACC chairman during the latters two-year stint in the US. Mistry took over as the companys deputy chairman of the company later. Pallonji Mistry is also the chairman of the century-old construction firm, Shapoorji Pallonji & Co. The Pallonji Mistry family holds the single largest stake (18 per cent) in the Tata holding firm, Tata Sons.

In his last address to the companys shareholders, Palkhivala said he was sad that he had to give them such depressing performance figures. The cement major reported a turnover of Rs 783 crore for April-July in the current year, compared with Rs 836 crore during the corresponding period last year. Cement sales dropped to 2.75 million tonnes, against 3.11 million tonnes last year. Production, too, dipped to 2.8 million tonnes from 3.1 million tonnes. The companys clinker production dropped to 2.4 million tonnes from 2.6 million tonnes during the period, Palkhivala told shareholders.

Responding to a shareholders query, Palkhivala said ACC hopes to reach an export turnover of Rs 50 crore during the current year. The company has planned capital expenditure of Rs 1,100 crore in the next five years, he added.

The bulk of the investment will go towards the companys Wadi project, which is expected to involve an investment of Rs 600 crore, Palkhivala added.

In response to another query, Palkhivala said 2,000 ACC employees were expected to take up retirement under the companys voluntary retirement scheme during the current year.

Palkhivala said ACC would take up nine new projects during the year. It is setting up a dry process plant at Lakheri, where trial production has begun. A 1mt clinker unit is being set up at Kymore at a cost of Rs 214 crore. The portland cement plant at Sindri will start operations this year. Besides, a new cement grinding unit is being set up at Tikaria in UP.