Andhra Cements Ltd

Andhra Cements Ltd

Andhra Cement Ltd.(formerly Andhra Cement Company Ltd.) incorporated in Dec.'36 was promoted and owned by the Sadu Jain group. It manufactures and markets cement under the Durga Prasad trade name. It's first unit was commissioned in Vijayawada in 1940. Later it was extended in three stages in 1951 1958 and 1970. By 1987 total capacity reached 2.4 lac tpa of cement. The company possesses mining leases over about 300 acres in Gammalapadu.In 1988-89 overall production of clinker as well as cement increased. But in 1989-90 there was a sharp decline in clinker and cement production due to the erratic and sometimes total lack of supply of coal scarcity of working capital continuous power cuts etc. In 1990-91 production increased significantly (72%) despite power cuts the shortage of fuel and severe paucity of funds. The Vizag Cement Works commenced production in Nov.'79. The company obtained a letter of intent to produce 2.5 lac tpa of cement at the Durga Cement Works Nadikude. Work on the new cement project at Durgapuram is in progress. The crusher was commissioned in Mar.'83 and the cement mill in Jun.'83.The company had an investment programme of Rs 63 cr including modernisation of the Vijayawada and Vizag units to increase the licensed capacity from 7.4 lac tpa to 12.4 lac tpa financed through term loans from financial institutions and banks. BIFR has sanctioned a scheme for rehabilitation in June 1994. The Scheme estimated at Rs.79.81 crore envisaged change of management in favour of Duncan Agro Inds. now known as Duncan Industries Ltd belonging to the G P Goenka Group(also known as Duncan Goenka Group). In the year 1997-98 the Duncan Goenka group of companies have brought Rs. 52.61 crs. under the BIFR scheme. A revised rehabilitation scheme has been prepared and submitted for consideration with the directions of Hon'ble BIFR.The total production of Cement during the year is 6.58 lac MT when compared to previous year of 6.28 lac MT an increase of 5%.The company for its Vizag Plant achieved ISO 9002 certification in December 2000.In Dec 2001 the BIFR on taking note of the fact that ACL and its promoters have failed to revive the company under the sanctioned Scheme of 1994 declared the sanctioned scheme as 'failed' and appointed IDBI as the operating agency(OA). IDBI has also been asked by BIFR by it's latest order to invite offers for takeover/leasing/amalgamation/merger for rehabilitation with or without one-time settlement of the dues of the FIs and banks including measures envisaged under SICA(Special Provision) 1985. Thre present promoters might also submit an offer in response to the advertisement it said.