Ambuja Cement Eastern Ltd (ACEL) has approved the amalgamation of the company with Gujarat Ambuja Cements Ltd.
The shareholders, secured and unsecured creditors took a decision to this effect at the court-administered meetings held on September 13, the company - a subsidiary of Gujarat Ambuja Cements Ltd - informed the stock exchanges.
The company will be submitting its application to the High Court for approval of the amalgamation scheme in due course, it said.
ACEL was set up in 1982 as Modi Cement Ltd. The company became sick industrial unit in 1994 and was referred to the BIFR.
Pursuant to a sanctioned scheme of BIFR, Gujarat Ambuja Cement Ltd infused funds into the company by way of fresh equity as a co-promoter in December, 1997. Later, the name of the company was changed to ACEL.
The company started making profit in the year 2000. The commercial production at its one million tonne grinding unit plant at Sankrail, West Bengal started in the same year. Since then the company has been growing.