Company History - ACC

1936

- The Company was Incorporated at Mumbai. The Company manufacture

cement, refractories and cement plant and other heavy machinery
including structural and mild fabrications. The Company undertook
revamping of the Kymore unit for production of high value refractory
intermediates. ACC, is India's oldest and largest cement company,
belonging to the Tata group.

- 6,03,200 No. of equity shares issued for consideration other than

cash.

1959

- In January, the Company in association with Vickers Ltd., and

Babcock
& Wilcox Ltd., formed a new company called ACC-Vickers-Babcock &
Wilcox
Ltd., formed a new company called ACC-Vickers-Babcock Ltd.

1965

- On 12th March, two agreements were signed between the Government

of
West Pakistan and the Company for the sale of all the immovable

properties of the Company at Wah and Rohri in Pakistan to the

Government of Pakistan. According to these agreements, a total

consideration of Rs 3.26 crores was payable by the Government of

West
Pakistan to the Company in seven annual instalments along with
interest
due.

- The Government of West Pakistan caused the Mumbai Branch of the

First
National City Bank to furnish an irrevocable and without recourse
guarantee to the Company.

- 4,74,731 Right Equity shares issued at par in the prop. 1:5.

1973

- The Company owned two collieries, one at Nowrazabad and the other
at
Kotma, both in M.P. Both the Collieries were taken over by
Government
with effect from 1st May, under the provisions of the coal Mines
(Nationalisation) Act, 1973.

1975
- With the acquisition of 2,86,000 shares during the year, AVB became
a
subsidiary of the Company.

1979

- The Company received intimation that the Commissioner of Payments

had
authorised a provisional payment of Rs 61.01 lakhs out of which a
sum
of Rs 6 lakhs was kept aside towards claims of the third parties
which
were pending in appeals.

- 4,74,731 Bonus shares issued in prop. 1:6.

1980

- The Company entered the field of chemical engineering as process

consultant and secured orders as well as turnkey contracts. The
provisional payment of Rs 60.01 lakhs was received.

1981

- The name of this subsidiary was changed to ACC-Babcock Ltd.,

consequent upon the disinvestment of the shareholding of Vickers
Ltd.,
U.K., in the Company.

1982

- The Company also received a communication in April, from the State

Cement Corporation of Pakistan Ltd. (SCCPL), informing the Company
that
they do not accept the judgement of the Mumbai High Court as final
and
binding and as alleged successors-in-title they intend to proceed
for
arbitration in the matter of settlement of Company's sale price for
its
undertaking in Pakistan.

1985

- A Collaboration agreement was finalised with Licensintorg of

Moscow,
U.S.S.R. for acquisition of `low temperature' technology for savings
in
fuel consumption, increase in production capacity and improvement in
the whiteness index in the manufacture of white cement.

- 6,64,623 Bonus Equity shares issued in prop. 1:5.

1986

- 80,882 No. of Equity shares issued to financial institution in

conversion of loans/debs. and another 16.175 shares allotted to them
as
bonus shares in respect of those shares.

1987

- During October, the Company issued 20,42,399 - 12.5% debentures of

Rs
125 ech to shareholders on rights basis in the proportion 1
debenture:

2 equity shares. Of these, 14,94,931 debentures were taken up. The

unsubscribed portion of 5,47,468 debentures were not allotted and
the
issue was treated as closed.

- Another 1,02,120 - 12.5% debentures of Rs 125 each were offered to

the employees (including Indian working directors) of the Company on
an
equitable basis. Only 15,776 debentures were taken up. The
unsubscribed portion of 86,344 debentures was allowed to lapse.

1988

- The entire face value of each debenture was compulsorily and

automatically converted into 1 equity shares of Rs 100 each at a

premium of Rs 25 per share as at 1st June. 15,10,707 No. of equity

shares were issued on 1st June, by virtue of this conversion.

1989

- As per the agreement signed on December 16th, the four loss making
plants viz., Shahabad (Karnataka), Lalani (Bihar), Kistna (AP) and
Porbandar (Gujarat), were sold and handed over to the purchases in a
phased manner between the period December 1989 and February 1990.

- The Company undertook to set up a project for the use of 100%

lignite
at Madukkarai Works in technical assistance with M/s. Rheinbraun
Engineering of W. Germany.

- The Company also assisted the plant suppliers in commissioning and

other activities preceding the take over of the management operation
and maintenance of the one million TPA cement plant at A1-Qaim.

- A Memorandum of Understanding was signed with M/s. Nihon Cement

Company, Japan for offering joint services in process engineering
and
productivity services, erection and construction, geological,
environment and mining etc.

1990

- Production of grey cement at 74 lakh tonnes was almost same as in

the
previous year, that of refractory products stood lower at 31,742
tonnes
due to a 4 months strike at the Katni plant.
- The coal washing at the Kymore cement works was machanically
completed and was commissioned in 1991-92.

- The products developed in-house were dark colour portland slag

cement, CASAL - non portland cement for concrete repairs,
`Shrinkkump-40', a new grouting formulation with rapid hardening
properties CALAL-65 a new calcium aluminate cement for refractory
application and Low Cement Castable - a new generation refractory
material.

1991

- The Company entered into an agreement with Refractechnik, Germany

for
manufacture of high quality bricks for the cement industry. Also an
additional turbine of 25 MW capacity was being installed at the
existing 25 MW captive power plant at Wadi works.

- The Company undertook to set up a synthetic ferric oxide plant of

10,000 tonnes per annum capacity at Falta in West Bengal at an
estimated cost of Rs 24 crores.

- The Company entered into a joint venture agreement with Nihon

Cement
Co. Ltd., Japan, pursuant to which a new company viz., Acc-Nihon
Castings Ltd. (ANCL) was incorporated for manufacture of high
quality
alloy steel castings.

1992

- A technological collaboration agreement was entered into with

International Steel Services Inc. USA for supplying IROX-NKK
technology
for setting up the Company's 10,000 TPA high purity synthetic ferric
oxide plant at Falta in West Bengal.

- One of the rotary kilns at Sindri Works was converted to slag

drier
and new auxillary equipment installed to enable during of wet slag
received from steel plants for manufacture of portland blast furnace
slag cement.

- Also seven large electrostatic precipitators were installed

completing the programme for providing individual ESP's to all the
27
kiln operated by the Company.

- In addition, the Company proposed to acquire a significant equity

stake in Webel Electro Ceramics Ltd., in Kalyani, West Bengal. It
had
set up a modern plant for the manufacture of soft ferrites.

- The Company along with TELCO, and Tata Exports Ltd., signed a

joint
venture agreement with Asahi Glass Co. Ltd., Japan for participating
in
the equity of Floatglass India Ltd., for manufacture of float glass
at
Taloja, Maharashtra.

- An integrated pilot plant was set up for a new generation of

refractories.

- 22,38,202 Bonus Equity shares issued in November in prop. 2:5.

1993

- The Company undertook to instal additional power plant of 25 MW

capacity at Wadi works.

- Advanced research work was carried on in the field of chemically

bonded ceramics in collaboration with materials research laboratory
of
the Pennsylvania State University, USA.

- The Company entered into a joint venture agreement with Aluminium

Company of America (ALCOA) USA. The joint venture company Alcoa-Acc
Industrial Chemicals Ltd., is to set up a 10,000 TPA capacity plant
at
Falta in W. Bengal.

- A MOU was signed in the Fars Khuzistan Cement Co., Iran for a
joint
venture company to be set up in Iran for providing engineering and
consultancy services in governmental and specifically in the areas
of
process dignostics productivity optimization, plant upgradation etc.

1994

- The Company signed a MOU for management, operation and maintenance

of
the existing 1.2 million TPA cement plant at Yanbu for a period of 3
years commencing from March 1996, with Yanbu cement company.

- The Company proposed to undertake major modernisation programme of

its old unit at Lakheri & Kymore by adopting dry process technology
at
a total estimated cost of Rs 123 crores.

1995

- The new 1.2 MTPA clinkering unit at Kymore and the cement
grinding,
packing and loading plant at Kymore was modernized and made
operational.

- The surplus clinker from Kymore would be supplied to a new

grinding
unit to be set up in Uttar Pradesh and the balance to Sindri Works,
where the grinding, packing and loading capacity was under expansion
from 0.3 MTPA to 0.6 MTPA.

- Operation of the Cement plant unit at Bandra-Kurla Complex was

expanded. A second unit was commissioned at Kalamboli to supply
ready
mixed concrete in the Navi Mumbai area. The third RMC plant was
commissioned at Bangalore to facilitate the supply of quality
concrete
to the expanding construction activities in the city.

- The Company signed a joint venture agreement with Bridgestone

Corporation, Japan, for setting up a plant near Indore in Madhya
Pradesh for manufacture of internationally renowned Bridgestone
brand
of all steel radial tyres for motor vehicles.

- Approvals were received for issue of equity shares and/or equity

related instruments for a Euro issue of upto US $ 100 million.
Approval was received for issue of upto 5,00,000 warrants to certain
Tata Companies.

- Cement Marketing Co. of India Ltd., Associated Tyre Machinery Co.

Ltd. and ACC Nihon Castings, Ltd. are subsidiaries of the Company.

- 7,29,565 Rights shares issued (Prop. 1:10; Prem. Rs 39.00).

1996

- The company was awarded another contract for management operation

and
maintenance of a new two MTPA cement plant at Saudi Arabia.

- The Company proposed to set up a new cement plant at Wadi with an

initial capacity of 2 MTPA.

- The Company's new unit at Nagpur for manufacture of monolithic

refractories was partly commissioned. New products under licence
from
M/s. Intoeast of Germany were produced for the first time at Nagpur.

- The Company also offered consultancy services in respect to design

and drawings for the construction of cement plants, refractory
linings
and technical know-how in prospecting work.

- 51,37,971 bonus equity shares issued in prop. 3:5.

1997

- A memorandum of understanding (MoU) was signed to facilitate the

new
venture by KPCL managing director K Jairaj and his ACC counterpart T
M
M Nambiar in the presence of Karnataka Chief Minister J H Patel.

- The Associated Cement Companies (ACC) has set up a modern

pre-grinding unit based on the vertical pre-grinder technology at
its
plant in Chanda, Maharashtra. The pre-grinder, set up for the first
time in the country, has been developed by ACC Machinery Company Ltd
(AMCL), a 100-per cent subsidiary company.

- ACC's Wadi plant in Karnataka is installing a single kiln with a

capacity of 10,000 tonnes per day (tpd).

- The Associated Cement Companies (ACC) will enter the syndicated

debt
market shortly with a seven-year floating rate paper of Rs.100-crore
with the coupon pegged at three to 3.5 percentage points above the
bank
rate of nine per cent. The paper will have a put-and-call option
after
five years.

1998

- The modernisation project at Sindri was commissioned during April

and
the new portland pozzolana cement grinding unit of 0.6 MTPA capacity
at
Tikaria in U.P. was under implementation.

- ST-BSES, the coal washing joint venture between BSES Ltd, Spectrum
Technologies and CLI Corporation of USA, has signed up with the
cement
major ACC Ltd to sell washed coal.

- ACC and Ebara Corporation of Japan have signed an MoU for joint
implementation of environment-related projects in India.

- ACC Ltd has bagged the Ficci award for adopting innovative
measures
for pollution control, waste management and conservation of mineral
resources in mines and cement plants in Himachal Pradesh. The award
is
for the Gagal cement unit, which has also received the ISO 14000
certification from the Bureau of Indian Standards.

- ACC made a preferential offer of naked warrants/equity shares to

the
promoter group at an exercise price of Rs. 110 per share.

- ACC made a rights offer of equity at a price of Rs. 55 per share,

and
subdivide the face value of shares of Rs. 100 each to Rs. 10 each
have
stirred a hornet's nest.

1999

- In Jan. 1999, the company came out with the rights issue of equity

shares of Rs 10 each at a premium of Rs 45 per equity shares in

ratio
of 1:4 to raise funds for capital expenditure on
modernisation/expansion of existing plants and creation of new
capacity
at wadi. Also, in Nov. 1999, it commenced commercial production of
captive power plants with capacity of 25 MW each at Jamul and
Kymore.

- ACC's objective is to increase its cement capacity by

approximately
three million tonnes per annum over the next two years.

- Of the 14,31,022 scam-tainted shares, which constitute 10.4 per

cent
of the total equity, 6,76,731 shares are held in the name of
notified
parties - of which the Harshad Mehta group's holding adds up to
6,23,345 shares. Benami shares, allegedly held by Harshad Mehta,
amount to 6,50,356 shares, while unregistered shares amount to
1,03,935
shares.

- The ACC has set up an internal committee to review investments in

subsidiaries and associate companies.

- Shares of cement major ACC Ltd shot up by Rs 100 to Rs 1,450 after

the market was abuzz with unconfirmed reports that French cement
major
Lafarge had appointed an investment bank to negotiate a buyout of
financial institutions' stake in the Tata group cement company.

- The Rs 2,500-crore ACC plans to double capacity at its Wadi,

Gulbarga
plant from the present two million tonnes to four million.

- ACC Ltd will offer ready-to-use value-added products in a year's

time. The `Suraksha' brand was launched a year ago in the Konkan
region and has features which make it a durable cement for the
coastal
belt.

- The ACC has taken up capital expenditure programme amounting to Rs

750 crore for modernisation-cum-expansion of the existing plants and
the creation of new capacity additions at Wadi or through
acquisitions.

- ACC is making a rights offer to part-finance its

expansion/modernisation programme at its existing plants, and set up
a
new unit at Wadi.

2000

- Tata group has exited from the company by divesting their 14%
equity
stake in favour of Gujarat Ambuja group. Notably, Gujarat Ambuja
group
is the most efficient and aggressive cement group in India. The
disinvestment was done in phases at Rs 370 per sahre. ACC has
completed
the modernization and expansion of the Chanda and Madukkarai cement
plants for increasing their capacities to around 1 MTPA each. These
plants started production from 1 September 2000 and 1 October 2000
respectively. The de-bottlenecking at Chanda, Gagal and Madukarrai
plants have added 1 MT to ACC's installed capacity.
- During the quarter ended Mar. 2001, the company commissioned its
new
Wadi plant of 2.6 MTPA, which is the largest kiln in the country.
With
the commissioning of this plant, ACC's installed capacity of cement
is
the highest in the industry at 15.3 million tonnes.

Also, the construction of a 15-MW thermal power plant at Chanda

Cement
Works is progressing satisfactorily and will be completed as per
schedule. ACC also plans to have a similar power plant of 15 MW at
Madukkarai.

ACC has decided to put on hold its plans to set up five new ready
mix
concrete (RMC) plants. Instead, it has decided to consolidate the
existing 13 RMC units and to go in for a capacity expansion of these
operational units.

The company, along with the Tatas, has decided to exit from the
ailing
business at Floatglass India. ACC holds around 13% stake in that
company. Asahi Glass of Japan, a co-promoter and the single largest
stakeholder, has agreed to buy their stakes. The sale of the equity
stake, stake in preference capital as well as non-compete fee will
fetch Rs 19.9 crore to ACC.

- The Company has turned down a proposal from the Gujarat Ambuja
nominees on its board to set up its own diesel generating sets for
the
expended capacity at Wadi, Karnataka, instead of sourcing power from
the Tata Electric Companies.

- The Company has suspended operations at one of its smaller cement

works at Mancherial, which has a capacity of about 330,000 tonnes.
The
suspension is due to non-availability of lime-stone.

- ACC is likely to set up a 1-million tonne per annum cement plant

in
Bellary.

- The Company proposes to exit from its non-core businesses.

2002

- ACC Ltd has informed that 18300 shares have been allotted to the
permanent employees of the company including employees retired
during
the FY 2001-02. The company has received from applicants the issue
price of Rs.108/- per share in full for 18300 shares allotted on
December 31, 2001.

- The ACC .Mr. T.M M Nambiar has been re-appointed as Managing

Director
for a further period from June 01, 2002 to November 30, 2002 on the
existing terms and conditions.

2. M L Narula, Wholetime Director, is redesignated as Chief

Operating
Officer. In addition to his current responsibilities of being
incharge
of the Cement Business, Mr. Narula will be also directly supervise
the
Human Resources and Finance functions. He will continue to report to
the Managing Director.

3. Mr. A K Jain, President-Marketing has been inducted on the Board

in
the casual vacancy of Dr AK Chatterjee and appointed Wholetime
Director
for a period of three years with effect from January 25, 2002.

2002

- Associated Cement Companies Ltd has informed that Mr P J Jagus has

resigned from the Board of Directors of the company wef January 25,
2002 after a long and fruitful association of 55 years with ACC. The
Board has at its meeting held on January 25, 2002 appointed Mr S M
Palia as a Director in the Casual vacancy.

- In Feb. 2002, consequent upon the transfer of shares from Etex

Group
to the company, Eternit Everest has become a subsidiary of the
company

w.e.f. 12.02.02. The company now holds 76.01% of the total equity
shares of Eternit Everest Ltd.

-ACC re-appoints P K Sinor as Wholetime Director.

-Associated Cement Companies Ltd has informed that pursuant to the

resolution passed by circular dated June 10, 2002, by the
Shareholders/Investors Grievance Committee, 12100 shares were
allotted against exercise of Stock Options granted to employees under
the Employees Stock Option Plan 2000.Consequently the paid up share
capital of the Company has increased from 1,70,811,885 shares as on
May 16, 2002 to 1,70,823,985 shares of Rs 10/- each as of date.

-Associated Cement Companies Ltd has informed that a share purchase

and transfer agreement has been executed between ACC and EPCOS AG,

Germany, for sale of 1,52,18,098 equity shares of the face value of

Rs 10 each held by ACC in International Ferrites Ltd (IFL) to EPCOS
AG, Germany. This constitutes the sale of ACC's entire shareholding
in IFL amounting to about 35% of IFLs share capital.

-ACC divests its entire holding in GRUH Finance in favour of HDFC.

-T M M Nambiar retires as Managing Director of ACC wef December 01,

2002.

-Chairman Emeritus Mr N A Palkhivala expires

-Singapore Investment Corp increases its stake in ACC up to 5.04%

-Divests 500,000 shares of Tata Industries

-Stops its agrotech and mining operations

-Appoints Mr. M L Narula as managing director in place of Mr. T M M
Nambiar

-Receives full consideration for sale of equity shares in

International Ferrites

-Wins PHDCCI Good Corporate Citizen Award for the year 2002

-LIC holds 14.31% stake in the company

2003

-Govt. of Singapore cuts down its holding in the company from 4.23%
to 2.96%

-Sells 19.5% stake in Bridgestone ACC India to Bridgestone

Corporation, Japan for Rs 50 crore

-Increases stake in its subsidiary Eternit Everest India from 26 per

cent to 76 per cent by acquiring the shareholding of Belgium-based
Etex group. The name of Eternit Everest India rechristened Everest
Industries Ltd.

-Bids for Idcol Cement of Industrial Development Corporation of

Orissa (Idcol), where the Government of Orissa hold 87% and remaining
owned by UTI

-Special court decides not to auction ACC shares held by Harshad

Mehta

-Foreign Institutional Investors (FII) increase holding in the

company from 18% to 22% in two months

-ACC on December 22, 2003 has signed a share purchase agreement with
Industrial Development Corporation of Orissa Ltd to acquire its
entire shareholding in IDCOL Cement Ltd (ICL) amounting to 86.79% of
ICL's equity share capital. Earlier this month, the State's Cabinet
Committee on Disinvestment had approved the sale of IDCOL Cement Ltd
to ACC as announced by the Department of Public Enterprise,
Government of Orissa.

2004

-Associated Ceramics Ltd has informed that at the meeting of the BoD
held on January 31, 2004, the Board approved voluntary delisting of
shares from Calcutta Stock Exchange Association Ltd and Hyderabad
Stock Exchange Ltd.

-launches 0m GDR, FCCBs

-ties up with UTI MF to buy out their entire 13.3 per cent
shareholding in Bargarh Cement (formerly Idcol Cement) for a total
consideration of Rs 26.85 crore.

-Associated Cement Companies (ACC) has purchased 13.21 per cent stake
in Bargarh Cement Ltd from Unit Trust of India. ACC bought 3.5 crore
shares of the nominal value of Rs 10 each in the company, for a
consideration of Rs 26.85 crore. With this, Bargarh Cement becomes a
100 per cent subsidiary of ACC.

-Citigroup purchases 8.06 lakh GDRs of ACC

- ACC Ltd appoints Naresh and Varshitha as Addl Directors

-Delist from Cochin Stock Exchange

-Delist from Delhi Stock Exchange with effect from October 13, 2004.

-ACC enters into BTA with ACE Refractories