Press Release Q 4 2007

RNS Number:9827M
ACC Limited
31 January 2008

PRESS RELEASE

ACC Limited

I Consolidated Results for January to December 2007

Yearly Yearly Growth
Jan-Dec 2007 Jan-Dec 2006 ( % )

Sales Volume Million Tonnes 19.97 18.83 6.1

Sales Turnover Rs. Crore 7067.43 5851.24 20.8

Profit Before Tax Rs. Crore 1925.43 1633.46 17.9

Net Profit after Tax Rs. Crore 1427.34 1239.60 15.1

Sale of Cement reached an all-time high of 19.97 million tonnes during the year
2007, representing an increase of 6.1%, as compared to the previous financial
year.

Total group turnover for the year was Rs. 7067.43 crore, up 20.8% over the group
turnover in the previous year.

Profit before Exceptional Items and Tax for the year 2007 was Rs.1715.58 crore,
as compared to Rs. 1472.55 crore in the previous year. Profit after Tax for the
year was Rs. 1427.34 crore as against Rs. 1239.60 crore in the previous year.

The improvement in profitability was as a result of higher sales volume and
improvements in operational efficiencies.

II Ongoing Modernisation/Expansion projects

The grinding augmentation projects at Tikaria of 0.31 million tonnes went into
commercial production in the first quarter of 2007. The project for expansion
of capacity at Lakheri by 0.90 Million Tonnes along with a new 25 MW Captive
Power Plant and the augmentation of grinding capacity at Kymore by 0.50 million
tonnes went into commercial production during the second quarter.

The project for expansion of Bargarh Plant to 2.24 million tonnes together with
a 30 MW Captive Power Plant is progressing well and scheduled to be completed by
the end of 2008. Similarly, the projects for augmentation at Madukkarai by 0.22
million tonnes is also expected to materialize by this year end.

Work on the expansion of New Wadi Plant in Karnataka was taken up along with two
split grinding plants in the state which together will

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augment our capacity in Karnataka by 3 million tonnes per annum. This project
will go on stream in the middle of 2009.

III New Project

The Board has approved establishment of a new clinker line of capacity 7000 TPD,
(equivalent to 3 Million Tonnes per annum) at Chanda in Maharashtra. It will be
accompanied by the setting up of a Captive Power Plant of 25 MW capacity. The
project outlay is estimated at Rs.1450 crore and scheduled to be completed in
2010. The Chanda expansion project will give a significant boost to our market
presence in Vidarbha/ Maharashtra and provide us with an opportunity to widen
our customer base in the home market of Central India.

IV Social Responsibility

During the year Corporate Social Responsibility received renewed focus. A
dedicated CSR organisation is being put in place comprising of experienced
professionals, while retaining the spirit of social volunteering from employees
of mainstream functions. Several initiatives have been taken to meet the
requirements of various stakeholder groups, beginning with fresh Community Needs
Assessment studies for those living in the vicinity of our Plants followed by
detailed programmes to fulfill critical needs.

An important partnership was forged with Development Alternatives, a reputed
NGO, to help launch a sustainable community development programme for
communities around our Wadi Plant. Spread over a three year period, this will be
among the most comprehensive and well structured social interventions
implemented by the company. The progress, impact and efficacy of individual
community development schemes will be measured regularly to ensure satisfactory
implementation.

The company continues to support the national effort to combat HIV/AIDS. The
Anti Retroviral Treatment Centre in Wadi, Karnataka was formally opened. This
centre provides voluntary counseling and testing services and caters to the
general public living in Wadi and surrounding districts. A formal partnership
was entered with the reputed Christian Medical College at Vellore to establish a
world-class centre for treatment of HIV/AIDS in Tamil Nadu.

V Sustainable Development

Waste management: The Company continued with its quest for Alternate Fuel and
Raw Materials and vigourously promoted its waste management services. Contracts
were successfully finalised with several

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waste generators for the co-processing of hazardous and non hazardous waste from
different industrial processes.

Wind Energy: The Company commissioned its first Wind Energy Farm as part of an
effort to adopt environment-friendly technologies and to reduce dependence on
energy from conventional fossil fuel based sources. The 9 MW wind farm,
comprising six wind turbines of capacity 1.5 MW each, is located at Udayathoor
in the Tirunelveli district of Tamil Nadu.

Sustainable habitats and Construction: ACC has joined hands with Holcim
Foundation for Sustainable Construction to help propagate the concept of
sustainable construction in India by encouraging sustainable building designs,
research and exemplary building projects. In another unique partnership, the
Company has signed a memorandum of understanding with Development Alternatives
to set up a centre of excellence that will help address imminent and future
challenges of housing and rural infrastructure by providing innovation support,
capacity building and outreach services to the construction industry. This
collaboration will make significant contribution in promoting the use of
sustainable materials and demonstrating sustainable habitat technologies in
housing and rural infrastructure.

VI Knowledge Development: Notable steps were taken in respect of the
critical area of knowledge building. The Sumant Moolgaokar Technical Institute
in Kymore, which celebrated its 50th anniversary during the year, was reopened
with a fresh curriculum to help groom Industrial Training Institute (ITI)
qualified students. The Company stepped forward to work with Government and
industry associations to partner with ITI's located near our plants. Already
plans for partnerships with 3 ITI's have received approval from respective state
governments.

VII Outlook

The outlook for the cement sector is promising. Several manufacturers are
implementing significant capacity expansion plans. These additions will help the
industry meet the increased demand for cement in future. We expect the demand
for cement to grow especially in infrastructure and housing sectors, keeping
pace with the growth of the Nation.

VIII Dividend

The Board of Directors has decided to recommend a final dividend of Rs.10 per
share aggregating to Rs. 219.51 Crore (including tax on dividend). Thus the
total dividend including interim dividend of Rs.10 per share paid in August,
2007 would be Rs. 20 Per share. The total dividend amount for the current fiscal
would be Rs. 438.76 Crore (including tax on dividend).

Sumit Banerjee
(Managing Director)

Mumbai - January 31,2008

This information is provided by RNS
The company news service from the London Stock Exchange
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