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Saurashtra Cement Ltd was incorporated in June 1956 as Saurashtra Cement and Chemical Industries Ltd by N K Mehta. The Mehta Group has presence in countries like Uganda, Canada, UK and US. In India, the group controls Gujarat Sidhee Cement Ltd too. The company started its operations with a 660-tpd plant and was the first company in India to use the semi-dry process. The company shifted to the dry process in 1980 through the addition of a 2500-tpd kiln and decommissioned the earlier kilns. The company acquired its present name in FY94. The company booked losses for 6 years in the 80s, and was referred to BIFR's purview in FY90, from which it emerged in FY92. The company largely produces Ordinary Portland Cement, and sells under the brand name Hathi. Saurashtra Cement holds a mining lease for 643 hectares at Ranavav. The limestone deposits are enough to meet the company's requirement for the next 60 years. The company procures fly-ash from the power plants of Gujarat Electricity Board at Sikka and Ahmedabad. It has installed DG sets with a total capacity of 5.8 MW, which meets nearly a fourth of its power requirement.
Gujarat has become a cement surplus state of late. To overcome the glut in the domestic market, the company has been trying to grab export markets. Lower realisations, coupled with increase in input costs, have also adversely affected Saurashtra Cement. The company came out of the red in FY98, propelled by improvement in operations and lower costs. In March 1998, Mumbai-based Autoriders Group made an announcement to acquire 20% of the company's equity (as on June 30, 1997). However, Saurashtra has enhanced the equity capital after that date, nullifying the validity of the offer. The Autoriders Group has challanged the enhancement of capital, alleging violations of Sebi laws and listing norms. The matter is still being examined by Sebi.
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