Mancherial Cement Company set for auction to clear ₹54 crore dues
TELANGANA: One of the oldest cement manufacturers in South India, Mancherial Cement Company, earlier known as Associated Cement Companies, is set to be auctioned to clear outstanding liabilities, dashing hopes of a revival among employees.
Auction notice issued by Indian Bank
Indian Bank has issued notices to auction the company’s assets after it failed to repay dues of about ₹54.04 crore. The move is expected to bring the curtains down on the 67 year old company.
The cement plant played a key role in the industrial growth of Mancherial, providing direct and indirect employment to thousands over decades.
Production halted, salaries irregular
At present, only a handful of employees remain on rolls, with salaries paid irregularly. Production has been stopped for a long time as the management struggles to service mounting debts. The company recently replaced electrostatic precipitators with modern equipment to comply with State Pollution Control Board norms.
The plant was established in 1958 on about 350 acres along the Hyderabad–Nagpur highway, using German technology. It had an installed capacity of 1,000 metric tonnes per day. Over time, output declined due to outdated technology and management practices.
Reeling under crisis since 2000
Losses mounted over the past two decades because of operational setbacks and rising debt. Internal disputes among promoters led to litigation, with around 20 cases pending in various courts.
The entire workforce was retrenched, triggering protests and legal battles by workers, who alleged violations of labour laws. Some former employees reportedly died by suicide.
Fact sheet
Year of establishment: 1958
Employees at inauguration: 1,000
Installed capacity: 1,000 metric tonnes per day
Plant area: 350 acres
Total assets: 438 acres
Outstanding liabilities: about ₹54 crore
Date of auction: January 12, 2026
