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ACC Limited Holds its 85th Annual General Meeting (AGM) Virtually

In Business
April 17, 2021

The 85th Annual General Meeting of ACC Limited was organized virtually on April 7th 2021. Martin Kriegner, Non-Executive Director of the Company, chaired the AGM. As mentioned by Kriegner, in year 2020 ACC progressed very well on the implementation of its four strategic priorities: Performance, Growth, Innovation and Sustainability.

Performance: ACC delivered on the expectations of its stakeholders and reported net sales of Rs. 13,487 Crore and Profit After Tax of Rs. 1,430 Crore. By driving cost management and operational efficiency programmes, ACC reported ~15% increase in EBITDA per ton of cement sold. ACC also continues to be a debt-free company with sufficient cash reserves to grow further. To build on synergies a unified management structure and single procurement organisation was created, with a master supply agreement between ACC and Ambuja Cements.

Growth: The Company has robust growth plans for the future. It undertook capacity expansion initiatives to capitalise on the growing demand for cement in the eastern and central regions. During the year, ACC completed and commissioned the new grinding unit at Sindri in the state of Jharkhand, which is one of the fastest CAPEX projects to be implemented despite the challenges posed due to COVID-19. The new facility will add 1.4 MTPA of cement capacity to its existing 3 MTPA at this site. With cement demand projected to rise significantly in India, several further development CAPEX projects were kick-started to increase clinker and cement capacities. The integrated Greenfield project of 2.7 MTPA clinker capacity with 1 MTPA grinding unit at Ametha in Kymore, Madhya Pradesh is on track. Expansion of the existing grinding unit in Tikaria with a 1.6 MTPA cement capacity and a grinding unit in Shonebhadra district in Uttar Pradesh with a capacity of 2.2 MTPA is progressing. These projects will ensure that ACC has sufficient capacity to cater to rising demand.

Innovation: As one of the most innovative and sustainable building solutions companies in India, ACC launched several new products like “ECOPact”, “ACC Thermofillcrete”, and “ACC Suraksha NX Anti washout Concrete”, and continued to drive the sales of its revolutionary cement, ‘ACC GOLD WATER SHIELD’. “ECOPact” is the industry’s broadest range of green concrete for high-performing, sustainable and circular construction. With our ECOPact products, ACC wants to give its customers a choice to significantly reduce the carbon footprint of the entire building.

Sustainability: ACC is aligned with ‘Net Zero’ ambition 2030 of its parent LafargeHolcim. In the year 2020 ACC is already water positive, having touched 8.30 Lakh lives through its CSR efforts and reduced its specific CO2 emissions to 493 kg/t of cementitious materials. Through the ‘Geocycle’ brand, ACC continues its efforts to provide safe waste management solutions and safely co-processed 5.7 lakh tonnes of alternative fuels and raw materials in its cement manufacturing process, thereby conserving traditional fuels and raw materials. During the year, ACC utilised solid wastes, like 5.33 million MT of fly ash and 2.82 million MT of slag, 4 lakh MT of synthetic gypsum, thereby contributing to the cause of sound environmental management. Additionally, 1.6 lakh MT of waste derived resources comprising fly ash and slag were utilised in the RMX business.

Martin Kriegner, Chairman of the 85th AGM said: “Every member of our workforce played an important part in delivering the business results in 2020. I thank all the employees of ACC for their contribution. On behalf of ACC, I extend my appreciation to all our stakeholders without whose support we could not have achieved this progress”.

Martin Kriegner and other members of the Board of Directors, and the shareholders joined the meeting via video conference. Apart from approving the standalone and consolidated Annual Financial Statements for the year 2020, the shareholders approved the payment of final dividend @ Rs. 14/- per equity share amounting to Rs. 262.90 crore.

The Shareholders approved the re-appointment of Narotam Sekhsaria and Jan Jenisch and the appointment of M. R. Kumar as Non-Executive Directors of the Company, liable to retire by rotation.