On top of the list are Orissa Cement, Kalyanpur Cement, Chettinad Cement and Dalmia Cement, ranked on the basis of the areas where ACC wishes to increase its presence in a major way. While the first two are located in Orissa and Bihar, the rest is located in Tamil Nadu.

Also in the list are Raymond Cement unit in Madhya Pradesh, the south-based three companies Malabar Cement, Priyadarshini Cement and Mysore Cements.

The study has also ranked the target companies on the basis of "ease of acquisition", with Mysore Cement and the Raymond Cement unit heading the list.

Sources say that it is being rumoured for the past few weeks that the Vijaypat Singhania group may put the Raymondunit on block, though no confirmation could be available from the promoters.

Mysore and Raymond are followed by Chettinad Cement, Dalmia Cement, Orissa Cement and Priyadarshini Cement. Most of these "targets", as the study shows, are located in the south, implying that ACC is poised for a major capacity addition in the area.

However, rival Gujarat Ambuja has already picked up around 7 per cent in Priyadarshini and could put up a stiff challenge to ACC, if it formally announces plans to acquire the Andhra-based company.

In fact the study goes on to say that if the Tisco acquisition does not materialise, ACC could target those companies whose acquisition costs would be within Rs 400 crore.

The think-tank also advises ACC not to enter the markets of Gujarat and Rajasthan, which are largely dominated by Gujarat Ambuja, Larsen & Toubro and Grasim Industries. As a result of the overcapacity in the region and flat demand, prices have actually fallen substantially in these two states on a year-on-yearbasis.

ACC has also been advised to expand aggressively in Kerala, south Karnataka, Punjab and Himachal Pradesh. The company has also been advised not to expand capacity in the east Maharashtra-west Madhya Pradesh belt as well as in east-Madhya Pradesh and northern Andhra Pradesh.

The strategy in the east will be to retain its leadership status and increase share through low-cost acquisitions, which, sources say, could be the reasons for targeting Orissa Cement and Kalyanpur Cement.

In the northern markets of Haryana, Delhi and Uttar Pradesh, the company has been advised to improve costs, image and its marketing network.