Gujarat Ambuja - Redefining Operational Efficiency

In December 1999, GACL acquired a 51% stake in Delhi based DLF Cement for Rs 3.5 billion. DLF Cement had started its operations in 1997 in Rajasthan with a plant of capacity 1.4 mtpa. After this merger, GACL became the fourth largest cement manufacturer in India after ACC, L&Tand Grasim. In the same month, GACL also acquired a 7.2% stake in Associated Cement Companies (ACC) for Rs 4.55 billion. ACC was the largest manufacturer of cement in India. With 14 manufacturing units in India, it had a total capacity of over 11 mtpa. It was one of the largest integrated cement companies in the world.

By the late 1990s, GACL had emerged as one of the most energy efficient and technologically advanced cement manufacturers in India. In December 2001, GACL began trial production at a new 2 mtpa plant in Chandrapur, Maharashtra, taking its total capacity to 12.5 mtpa (Refer Exhibit I). For the financial year 2000-01, the company recorded a turnover of Rs 12.52 billion and a net profit of Rs 1.5 billion (Refer Exhibit II).