THIS CEMENT LEADER NEEDS SOME CASH

Article Abstract:

The Rs2,500-crore ACC has an installed cement production capacity of 12 million tonnes per annum. It is trying to consolidate its position as the largest cement company in India in the face of increasing competition. ACC was a contender for the 1.73 million tonnes per annum cement plant of Tata Iron & Steel Co in Madhya Pradesh. This was sold to Lafarge of France. It is to raise funds through a rights issue and a preferential offer of shares to Tata Sons and other Tata group companies, raising their stake from 13 percent to 18 percent. ACC will need the money to fund its acquisitions. It does not have the money to make acquisition bids with its net profit slumping by 83 percent at Rs13.44 crore in 1997-98 (Rs76.92 crore in 1996-97). Its operating profit has fallen by 23 percent. Its debt-equity ratio is 2:1. ACC has divested its stake in various joint ventures, like Bridgestone Corp, to raise funds. It expects to net Rs190 crore from the rights issue and around Rs100 crore from the preferential allotment of shares. ACC proposes to allot the shares to the Tata companies at Rs110 per share. However, financial institutions have objected to the preferential allotment as they feel the price is much lower than Rs250 paid by shareholders in 1995. (tsm) (kvr)

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Construction Area: Briefly

Article Abstract:

This article focuses on various companies and construction projects under way.

United States, South Korea, Australia, Japan, Diversified Companies, Construction, Germany, Highway and Street Construction, Plastics Material and Resin Manufacturing, Primary Iron & Steel, Iron and Steel Mills and Ferroalloy Manufacturing, Cement, hydraulic, Malaysia, Spice and Extract Manufacturing, Egypt, Mining & Extractive Industries, Mining, Building, Developing, and General Contracting, Plastics materials and resins, North Korea, Blast Furnace and Basic Steel Products, Polyvinyl Chloride, Chemical preparations, not elsewhere classified, General Industrial Machinery, GENERAL BUILDING CONTRACTORS, Vietnam, All Other General Purpose Machinery Manufacturing, Building Construction, Local Roads Construction, Evaporated Salt, Industrial Hydraulic Equipment, Statistical Data Included, China, Analysis, Construction industry, Planning, Economic aspects, Industrial equipment, Mergers, acquisitions and divestments, Finance, Reports, Investments, Mining industry, Road construction, Contracts, 2000 AD, Buildings and facilities, Buildings, Industrial equipment and supplies industry, Industrial equipment industry, Cement industry, Steel industry, Airports, Siemens AG, Polymer industry, Kobe Steel Ltd., Chemical plants, Industrial minerals, ABB Asea Brown Boveri Ltd., Shimizu Corp., Hyundai Corp., Hydraulic equipment, Lafarge Group, Salt industry, Brickmaking, Polyvinyl chloride industry, Malaysia Mining Corporation Bhd., International Development Association, Conexpo, Korean Central News Agency, Nordberg Group, Groupe GTM, HABLA Kilns Pvt Ltd., LG INTERNATIONAL CORP., Al Shorouk Group, Nitto Denko Corp., Cheetam Salt Ltd.

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