HISTORY OF THE COMPANY:

The history of the group "House of Chettinad" is linked with the 9 decades old saga. In 1912
took birth the house of Chettinad through a visionary idealist and born entrepreneur Dr. Rajah
Sir Annamalai Chettiar who believed in social transformation through business. The company,
which has always been striving for total quality. possesses International certificate ISO 9002
ISO 14001 and takes pride in being acclaimed as one of the major company played in a highly
competitive cement industry in India. The Company added another feather to its cap by
installing and commissioning against sophisticated high-tech and power efficient O & K cement
in resulting in a production to touch one million tone mark.

CHETTINAD CEMENT CORPORATION LIMITED:

Chettinad cement corporation was incorporated basically to cater to growing demand of Cement
industry. The founder of the House of Chettinad envisioned, his companies providing the
stimulus for Industrial growth and conceived business as a means of improving the living
standards of the people.

The corporate credo of the House of Chettinad - "STRIVE, SERVE and SERVE" is the very
thought of the founder of the company. Chettinad Cement Corporation Limited is an India-based
company engaged in the business of manufacturing cement.

The Company is also engaged in diverse activities, such as manufacturing (cement, silica,
quartz and grits), services (construction, transports, steel fabrication, ship management and
stevedoring, clearing and forwarding), trading, power generation, plantation, farms and logistics.

The manufacturing unit of the company is located at Puliyur, Karur and some

districts of Tamil Nadu. The company commenced its production in the year April 1996.

EVENTS OF THE COMPANY

⚫ 1962 - The Comp. was incorporated on 11th December, in Chennai. The Company
manufactures Portland cement.

-8,50,000 No. of Equity shares subscribed for by directors, etc. 90,000 Preference &

12,50,000 No. of Equity shares offered at par in the public in April 1965.

The Comp. executed mining lease deeds for mining limestone and clay. The Government also
issued orders regarding the mining of gypsum.

1979 The Comp. had taken up a Scheme for improved working of the quarry & factory which
included installation of electrostatic perceptible for kilns, captive power plant, etc.
1983 - Towards the implementations of first phase of the modernization scheme, a primary
crusher with a capacity of 400 tones per hour along with necessary material handling equipment
was installed.

- In continuation of first phase, it was planned to install a dry process kiln with a capacity of
1.700 tones per day with precalciner. The plant capacity would be increased to about 5.8 lakh
tones per annum.

1988 - 21,00,000 Right Equity shares issued at par [prop. 1:18]. Another 1,05,000 No. of equity
shares offered at par to employees but only 15,850 shares taken [rest were allowed to lapses].
Redemption date for 26,545 pref. shares extended to 25.06.1994 or after & pref. div. raised to
14% from 25th June.

⚫ 1992 - With the conservation of energy as main theme, the Company undertook

modernization/expansion programme during the years 1986-89.

⚫ 1993 - During the year, the Comp. achieved capacity utilization of 119% despite

unexpected heavy rains & lorry strike.

1994- The Comp. commissioned 16 Nos. of Wind Power Generators to a capacity of 4 MW

under phase I. In addition, 26 Nos. of wind power generators to a capacity of

5.85 MW were installed and commissioned in March 1995 under phase II.

-The Comp. had also taken steps to install 12 Nos. of wind power generators of 400 KW each to
a capacity of 4.8 MW under phase III which was to be commissioned before September 1995.

The Comp. entered into a memorandum of agreement for the acquisition of bulk carrier of
43589 DWT in order to enter shipping business. Necessary approvals from the concerned
authorities was obtained.

- The production was hampered by unexpected heavy rains & also lorry strike. Nevertheless,
the Comp, made a substantial recovery in the last quarter of Financial year.

- The Comp. has taken steps for installing 16 Nos, of 250KW each Wind Power

Generators for a total capacity of 4 M.W. near Poolavadi in Coimbatore District.

1995-42.15.850 bonus shares issued in prop. 1:1.

- The Comp. has been awarded ISO 9002 Certificate of International Organisation for
Standardisation by Bureau of Indian Standards for quality systems-model for quality assurance
in production & installation & reiterate with great pride that the Comp. is the first Comp. in
Tamilnadu to be honored with ISO 9002 Certificate in the field of mining.

- The Comp. has taken steps to install 12 Nos. of Wind Power Generators of 400 KW each to a
capacity of 4.8 MW in the same location under Phase III. The proposed Wind Power Generators
will be commissioned before end of September with financial assistance from IFCI.

The Comp. has decided to diversify its activities by entering into Shipping Sector. The Comp.
has entered into a Memorandum of Agreement for acquisition of Bulk Carrier of 43589 DWT

⚫ 1996 - The Comp. took up a modernisation programme, considering the installation of

Stacker-cum-Reclaimer, Earth moving equipment. Primary crusher, construction of Silos,
Vertical Roller mill for cement grinding & packer.

- The Comp. has installed & commissioned 12 Nos. of 225 KW each Wind Power Generators
under phase IV in March. 96 with the financial assistance from the Industrial Finance
Corporation of India limited Totally, 66 Nos. of Wind Power Generators for a capacity of 17.35
MW have been installed in four phases.

1997 - The cement production was significantly lower at 8.34 lakh tonnes against 9.15

lakh tonnes in 1995-96 because of slower off take in the closing months of accounting period &
the adverse effect of truckers strike in March. -Chettinad Cements Ltd has planned to set up a
new cement unit with a capacity of 6

lakh tonnes near its existing unit. This expansion will take the total capacity of Comp.

to 1.2 million tonnes per annum.

1998 The Rs.8 crores commercial paper programme of Chettinad Cement Corporation has
been assigned a P2+ rating by Crisil

The Comp. is financially strong & rates amongst the best in the industry on

operating efficiency parameters.

-Chettinad Cement Corporation Ltd has recently installed and commissioned a Onada

and Kobes cement mill to improve the quality of its cement.

With the introduction of new technology, the Comp. has recently launched 'Chettinad Royal' 53-
grade cement which had high strength & uniform particle distribution.
-It undertook a modernisation programme & staged a turnaround in the early nineties, supported
by a strong recovery in cement prices in southern India. ⚫ 1999 - The expansion involves
setting up of an one million tonne greenfield project at

Palayam [a limestone belts] in Tamil Nadu about 45 km from the company existing

plant.

Chettinad Cement Corporation Ltd [CCCS] has embarked upon a expansion programme at its
existing facility under which the capacity would increase to 1.5 million tonnes per annum from
the current 0.6 million tonnes per annum.

- The Chennai-based Chettinad Cements Corporation Ltd [CCCLs) is doubling its cement
capacity to two million tonnes.

Chettinad Cement is one of major players in the South. Apart from cement, the Company has
interests in shipping too.

⚫ 2000 - Chettinad Cement Corporation Ltd is coming out with a Rs 60-crore rights issue to
fund its one million tonne greenfield expansion plan at Palayam in Dindigul district, Tamil Nadu.

-Chettinad Cement Corporation Ltd has priced its rights issue at Rs 32 per share. The ratio for
rights entitlement is 2:3.

- The Comp has acquired 4,01,884 shares of Comp. by way of inter-se-transfer among
promoters.

⚫ 2001

-Tamil Nadu Electricity Board [TNEBS] signs MOU with the Chettinad Cement Corporation
limited under which the board will ensure time-bound supply of quality power to the company

-High Court orders the state government, Sipcot & the commercial tax department to extend
sales tax incentive to Chettinad Cement Corporation Ltd [CCCLs]

-Commissioned its 1.1 million tonne greenfield expansion project in Tamil Nadu at a cost of Rs
325 crore

-Launches ready-mix concrete [RMCS] under the brand, 'Ready Mix Chettinad

2002

-Approves the proposal to come up with a rights issue for raising about Rs 40 crore in
the ratio of 2:5 at a price of Rs 36 each

. 2003

-Board of directors ratify the proposed rights issue valued below Rs 40 crore to be used to part
finance the 15-MW coal-based captive power plant that the Comp. intends to put up

-Decides to revoke the Rights Issue

PROFILE OF THE COMPANY:

Chettinad Cement Corporation Ltd was incorporated on 11 December 1962 and commenced
cement production in the year 1968 at its first plant at Karikalli in Dindigul district of Tamil Nadu.
Incorporated in the year 1962, Chettinad Cement Corporation Limited ISO 9002 certificate by
the Bureau of Indian Standards, in 1994. Chettinad Cement Corporation principally operates in
India and the company is

headquartered at Chennai in India.

NAME OF THE COMPANY: Chettinad Cement Corporation Ltd.

ADDRESS: HO/Corp. Office

5th floor. Rani Seethai hall.

603 Annasalai

Chennai-600006

It is the first company in Tamil Nadu to be honored with this certificate, in the

field of mining. The Karur unit of Chettinad Cements has been functioning with the highest
operating ratio for any cement unit in the southern region. In September 1994, the company
commissioned 16 wind power generators near

Poolavadi, Coimbatore. In addition, 26 wind power generators have been installed in

March 1995, in the same place.

While 12 Nos of 225 KW each of Wind Power Generator commissioned in 1995- 96. Totally 66
wind power generators for a capacity of 17.35 MW have been installed in four phases and they
are functioning well.
The project was financed by the Industrial Finance Corporation of India (IFCI) and internal
accruals. Chettinad Cement Corporation Limited has diversified into shipping. Its shipping fleet
consists of two bulk carriers viz m.v. Chettinand Tradition and m.v. Chettinad Prince. The
Second Cement plant at Karikalli, Tamil Nadu faced some teething problem in 2002 and in 2003
the plant was successful in making it fully operational with optimum efficiency.

During 2002-03 the comapny completed the Rights Issue of 84,31,700 equity shares in the ratio
of 2:5 at a premium of Rs. 26/- per share. The company has commissioned a 15 MW Captive
Thermal Plant at its plant at Karikalli during October 2004. Chettinad cement has attached great
importance to social responsibility and environmental values.

This manifests the installation of the latest pollution control equipment in the plant. In
accordance with the expansion plan spelt out in the earlier years, the company inaugurated its
new state of the green field cement plant in Karikkal village. Dindigul district, Tamil Nadu in
October 2001 and commenced commercial production.

The plant has a production capacity of 0.9 million tones per annum and is equipped with the
latest technology right from the treatment of the raw materials to the packing of the cement.
With the large infrastructure projects of the government for concretizing the national highways
and rural roads, like the Golden quadrilateral and the Grama sadak yojanaa, in the pipeline, the
cement industry as well as your co looks forward to a bright future and hopes to achieve more
milestones in the years to come

PRODUCTS:

An unique cement manufactured at Puliyur works having very quality for special concrete
applications.

Pavithram:

Chettinad Royal Grade 53: Superior finely ground cement, suitable for

plastering works, giving a silky finished looks. For RCC applications Laser controlled
manufacturing would yield best results.

Chettinad Grade 43: Multipurpose cement, suitable for plastering and

binding.

⚫ Chettinad PPC: A finely blended cement, providing very fine result for

plastering work, devoid of hair line cracks and giving excellent appearance to

the building
Sulphur Resistant Cement: Finds application results in the construction activities in the coastal
areas to save from corrosiveness due to salty environment.

OBJECTIVES OF THE COMPANY:

To purchase, take on lease, or otherwise acquire, the undertaking business and property or any
there of any company or companies carrying on business and manufacturers of cement and
mineral industries in India or elsewhere, or any other business which the company in entitled to
carry on.

• To carry on the business of miners, metallurgists, builders, contractors, engineers, merchants,

importers and exporters, and to buy sell and deal in properties of all kinds

To carry on investigations to discover places where cement can be profitably made, or where
any materials, minerals for any manufacturing work, the company are entitled to carry on, can
be obtained and to obtain prospecting to research work in that behalf.

TECHNOLOGICAL CHANGES:

Cement industry has made tremendous strides in technological aspects and assimilation of
latest technology. At present 93% of the total capacity in the industry is based on modern
environment and friendly dry process technology and only 7% of the capacity is based on old
wet and semi-dry process technology. There is tremendous scope for waste heat recovery in
cement plant and thereby reducing the emission level. The induction of advanced technology
has helped the industry immensely to conserve energy. fuel and to save material substantially.