Gujarat Sidhee Cement Ltd Merged Company Summary

Gujarat Sidhee Cement Ltd Merged Summary

Incorporated in 1973, as Cement Corporation of Gujarat, a wholly-owned subsidiary of the Gujarat Industrial Investment Corporation (GIIC), Gujarat Sidhee Cement (GSCL) was promoted by GIIC and the Mehta group. The company got its present name in Jan.94.GSCL undertook a project to manufacture 1 mtpa of portland cement on 344 hectares land obtained at Junagadh district, Gujarat. The mining lease of 254 hectares is awaited. GSCL is a sick company registered with the BIFR since Jul.90.Due to differences between the two promoters and the following prolonged litigation, GIIC decided to disinvest part of its holding in GSCL, in favour of the Mehtas. The Mehta group with a 38% equity stake, now exercises control over the company.GSCL came out with its first rights issue in Jan.90, followed by a second one in Jul.94 to pay off loans, add balancing equipment and raise its capacity from 1 mtpa to 1.2 mtpa. This increased the equity to Rs 119.08 cr.GSCL has been awarded the coveted Certificate under ISO-9002 by TUV Private Ltd., a subsidiary of RWTUV of Germany for excellence in quality management.Over the last three years, GSCL has been showing signs of recovery, with higher capacity utilisation each year. GSCL received a Certificate of Merit for 95-96 from CAPEXIL for its export performance.The company is also planning to install a captive power plant, construct a captive jetty close to the plant along with other modernisation jobs in its plant.The company is planning to go for modernisation of its Raw Mill,Preheater and clinker cooler systems.