Andhra Cements Ltd Company Summary

Andhra Cements Ltd Summary

Andhra Cement Limited (formerly Andhra Cement Company Limited ), incorporated in Dec.36, was promoted and owned by the Sadu Jain Group. It manufactures and markets cement under the Durga Prasad trade name. The Company is engaged in the manufacturing and selling of Cement and Cement related products.The Companys 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 Honble 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.During the period 2011-12, the Company got into a Share Subscription and Share Purchase Agreement (SSSPA) on 15th November, 2011 with Jaypee Development Corporation Limited (JDCL), a wholly owned subsidiary of Jaypee Infra Ventures ( A Private Company with Unlimited Liability), the companies belonging to Jaypee Group. Accordingly, an Open Offer was made by JDCL to the existing shareholders to acquire upto 7,63,15,328 Equity Shares of the Company representing 26% of the expanded paid up Equity Capital of the Company, which was opened from 25th January, 2012 to 8th February, 2012. Thus, during 2011-12, JDCL acquired 14,75,00,000 Equity Shares of the Company by way of Preferential Issue, purchased of 2,17,22,336 Equity Shares from erstwhile Promoters and 63,06,856 Equity Shares through Open Offer. Consequently, as on 31st March, 2012 the shareholding of JDCL in the Company stood at 17,55,29,192 Equity Shares constituting 59.80% of the expanded capital base. With the acquisition of the above shares, JDCL acquired managing control over the Company and was classified as Promoter effective 10th February, 2012. Accordingly, Andhra Cements Limited became a subsidiary of Jaypee Development Corporation Limited and in turn, a subsidiary of Jaypee Infra Ventures thus becoming part of the Jaypee Group.The 30MW Captive Power Plant (CPP) commissioned in Sep 15. The Companys both the plants viz, Durga Cement Works (DCW) and Visaka Cement Works (VCW) were operational and produced Clinker and Cement in 2017-18. The Company sold its surplus and un-utilised land situated at Jayanthipuram Village, (AP) and as a result, Visakha Cement Works (VCW) was operated till July,2018.The Honble NCLT, Amaravati Bench, vide its Order dated 16 February, 2023 approved the Resolution Plan submitted by the Resolution Applicant, Sagar Cements Limited. The Resolution Applicant, Sagar Cements Limited upon successful implementation of the Resolution Plan took over the control of the Management and Ownership of the Company and by virtue of which,the Company became subsidiary of Sagar Cements Limited.During year 2022-23, the Company recommenced Grinding Plant Operations from 12th April, 2023 at its Durga Cement Works.