Heritage
- A Corporate Saga
Ours has been an interesting
story – one that inspired a book.
ACC was formed in 1936 when ten existing
cement companies came together under
one umbrella in a historic merger –
the country’s first notable merger
at a time when the term mergers and
acquisitions was not even coined. The
history of ACC spans a wide canvas beginning
with the lonely struggle of its pioneer
F E Dinshaw and other Indian entrepreneurs
like him who founded the Indian cement
industry. Their efforts to face competition
for survival in a small but aggressive
market mingled with the stirring of
a country’s nationalist pride
that touched all walks of life –
including trade, commerce and business.
The first success
came in a move towards cooperation in
the country’s young cement industry
and culminated in the historic merger
of ten companies to form a cement giant.
These companies belonged to four prominent
business groups – Tatas, Khataus,
Killick Nixon and F E Dinshaw groups.
ACC was formally established on August
1, 1936. Sadly, F E Dinshaw, the man
recognized as the founder of ACC, died
in January 1936. Just months before
his dream could be realized.
F.
E. Dinshaw – the founder of ACC |
ACC stands out as the
most unique and successful merger in
Indian business history, in which the
distinct identities of the constituent
companies were melded into a new cohesive
organization – one that has survived
and retained its position of leadership
in industry. In a sense, the formation
of ACC represents a quest for the synergy
of good business practices, values and
shared objectives. The use of the plural
in ACC’s full name, The Associated
Cement Companies Limited, itself indicates
the company’s origins from a merger.
Many years later, some stockbrokers
in the country’s leading stock
exchanges still refer to this company
simply as ‘The Merger’.
ACC's First Board Meeting in 1936
at The Esplanade
Sir Nowroji B Saklatvala was
the first chairman of ACC. The first
Board included distinguished luminaries
of the Indian business world of the
time – names like J R D Tata,
Ambalal Sarabhai, Walchand Hirachand,
Dharamsey Khatau, Sir Akbar Hydari,
Nawab Salar Jung Bahadur and Sir Homy
Mody among others.
A
strategic alliance
The house of Tata was intimately associated
with the heritage and history of ACC,
right from its formation in 1936 upto
2000. Between the years 1999 and 2000,
the Tata group sold all 14.45 per cent
of its shareholding in ACC in three
stages to subsidiary companies of Gujarat
Ambuja Cements Ltd (GACL), who are now
the largest single shareholder in ACC.
This has enabled ACC to enter into a
strategic alliance with GACL, a company
reputed for its brand image and cost
leadership in the cement industry.
Holcim
- a new partnership
A new association was forged between
ACC and the Holcim group of Switzerland
in 2005. In January 2005, Holcim announced
its plans to enter into a long-term
strategic alliance with the Ambuja Group
by acquiring a majority stake in Ambuja
Cements India Ltd. (ACIL), which at
the time held 13.8 per cent of the total
equity shares in ACC. Holcim simultaneously
announced its bid to make an open offer
to ACC shareholders, through Holdcem
Cement Pvt Limited and ACIL, to acquire
a majority shareholding in ACC. An open
offer was made by Holdcem Cement Pvt.
Limited along with Ambuja Cements India
Ltd. (ACIL), following which the shareholding
of ACIL increased to 34.69 per cent
of the Equity share capital of ACC.
Consequently, ACIL has filed declarations
indicating their shareholding and declaring
itself as a Promoter of ACC.
Holcim is the world
leader in cement as well as being large
suppliers of concrete, aggregates and
certain construction-related services.
Holcim is also a respected name in information
technology and research and development.
The group has its headquarters in Switzerland
with worldwide operations spread across
more than 70 countries. Considering
the formidable global presence of Holcim
and its excellent reputation, the Board
of ACC has welcomed this new association.
ACC’s
Head Office - Cement House,
121 Maharshi Karve Road, Mumbai. |
ACC’s registered office was first located
at Esplanade House in South Mumbai,
a graceful edifice that still stands
out in its neighbourhood. The head office
then shifted to its own premises in
Cement House shown here. The address
of this stately building was then Number
1, Queen’s Road, Churchgate. An
all-India competition in 1938 had invited
leading architects of the time to send
in their designs of which this elegant
design made by Ballardie Thompson &
Mathews was chosen as the winning entry.
Work on its construction began in 1939
and was completed during the War period.
The building was occupied by the Royal
Air Force and vacated only in 1946.
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