Historic Mancherial Cement Company faces auction

Mancherial Cement Company, one of South India’s oldest cement manufacturers, is set for auction to repay Rs 54.04 crore in debts. Production halted, staff unpaid, and legal battles unresolved, marking the end of the 67-year-old industrial landmark

Mancherial: One of the oldest cement manufacturers in South India, the Mancherial Cement Company (MCC), formerly known as Associated Cement Companies (ACC) is all set to be auctioned to clear liabilities soon. The move shatters hopes of revival pinned by hundreds of employees.

Indian Bank issued notices to the company to auction its assets for failing to repay debts of Rs 54.04 crore. The auction brings curtains down on the 67-year-old company. The factory helped the district shine in the industrial sector, besides providing employment to thousands of people directy or indirectly.

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Currently, a handful of staffers are working and they are not being paid salaries regularly. The management is struggling to clear its growing debts as it stopped production long time ago.  It recently replaced Electrostatic precipitators (ESP) of the plant with modern equipment to meet the norms of the State pollution control board.

The plant was set up on a sprawling 350 acres of land on the Hyderabad-Nagpur highway, using advanced German technology in 1958. It had an installed capacity of 1,000 metric tonnes per day. However, the plant performance suffered a significant dip due to outdated technology and ill practices of management over a period of time.

Reeling under crisis since 2000

As losses mounted due to mounting burden of debts caused by the operational losses for over 20 years, the factory was beset with internal bickerings among the promoters, who approached various courts and around 20 cases were pending against the management.

Entire workforce was retrenched the affected workers staged protests and approached courts, but in vain. They alleged that the management flouted various labour laws, causing gross injustice to them. Some of them ended their lives.

 

The Fact sheet

Year of establishment: 1958

Employees at the time of inauguration: 1,000

Installation capacity: 1,000 metric tonnes per day

Area of the plant: 350 acres

Total Assets: 438 acres

Outstanding Liabilities: Rs 54 crore (Approximately)

Date of auctioning assets: January 12, 2026