Bargarh Cement (formerly Idcol Cement), ACC¹s recently acquired subsidiary, has generated Rs 64 crore revenues and a profit of around Rs 2.6 crore after its takeover. ACC had taken over the plant on December 22 last year and has prepared independent accounts for this particular period of three months and nine days. However, for the full financial year, Bargarh has made a loss of Rs 26 crore as compared to loss of Rs 21 crore in 2002-03. This is because following the takeover, ACC had adjusted bad debts to the tune of around Rs 12 crore,² said ACC president (finance) NH Italia, at a conference call recently.
ACC had acquired Idcol Cement from the Orissa government in December 2003. With the acquisition of the balance 13.21 per cent stake of Unit Trust of India, it became a 100 per cent subsidiary of the company. Mr Italia added that ACC had for the first time crossed 15 million tonne production during the last fiscal as compared to 13.95Mt in 2002-03. This works out to an increase of around 9.3 per cent on a year-on-year basis. ACC¹s major capital expenditure for the current year will include modernisation of the Chaibasa plant at Jharkhand, which currently has 0.6 million tonne capacity. Mr Italia said that the company would complete setting up of a new 1.3Mt dry kiln by the last quarter of the financial year. With this, the company would have completed the conversion modernization of all its cost ineffective wet process facilities within its portfolio.
ACC is also currently setting up a captive power facility of 15mW at its Chaibasa Works. ³We are totally insulated in terms of our own power to the extent of close to around 84-85 per cent,² said Mr Italia.