• PAGE ONE
• INDEX
• HOME

ACC plans stock option scheme for employees

Our Bureau

MUMBAI, July 3

KEEPING in line with the present trend, The Associated Cement Companies Ltd (ACC) has proposed to introduce an Employees Stock Option Scheme (ESOS).

The proposal will, however, be taken up for the share holder's approval in the annual general meeting (AGM) on July 19 here.

According to the company's annual report, the total number of options to be granted would not exceed 15,00,000 equity shares which is about 0.9 per cent of the subscribed equity share capital.

The employees of the company and the company's subsidiaries, as decided by the compensation committee and the board of directors, would be entitled to participate in the scheme.

The amount of discount on the price would not exceed 20 per cent. The maximum number of options granted per eligible individual will not exceed 20,000 equity shares.

The company's annual cement production capacity is expected to reach 15 million tonnes by 2001. The wage bill is likely to see a reduction while distribution costs are planned to be reduced by five per cent.

ACC's market share in Maharashtra and Karnataka is expected to increase with the commissioning of the new two-million-tonne production line at Wadi, Karnataka during the first half of 2001. Thus the total capacity of Wadi plant would increase to six mill ion tonnes.

In the Marathwada and Vidarbha regions, the expansion of the Chanda plant to nine lakh tonnes annually is expected to improve cost competitiveness. While the plant at Madukkarai in Tamil Nadu will allow the company to reach a production level of 9.6 lakh tonnes annually thus maintaining its market leadership in North Kerala.

Increased share of blended cement in total production is expected to improve the cost of competitiveness of some plants.