Chris Jose

A REPORT ON ORGANIZATION STUDY AT

ACC LIMITED, MADUKKARAI CEMENT WORKS, COIMBATORE

An Organization study Report submitted to Mahatma Gandhi University

for the partial fulfillment of the Award of Master of Business

Administration 2011-2013

Submitted By

CHRIS JOSE

(Reg No. 121115)

Under the Supervision of

Dr. Saji M Abraham

SCHOOL OF MANAGEMENT AND BUSINESS STUDIES

MAHATMA GANDHI UNIVERSITY PRIYADARSHINI HILLS P.O

KOTTAYAM – 686 560

KERALA

ACC Limited – Madukkarai Cement Works

2

SMBS, Mahatma Gandhi University, Kottayam

SCHOOL OF MANAGEMENT & BUSINESS STUDIES

MAHATMA GANDHI UNIVERSITY PRIYADARSHINI HILLS P.O

KOTTAYAM – 686 560

KERALA

CERTIFICATE

This is to certify that the report on ―ORGANIZATION STUDY AT

ACC LIMITED-MADUKKARAI CEMENT WORKS, COIMBATORE‖, submitted

to Mahatma Gandhi University in partial fulfillment of the requirements for the award of

the degree of Master of Business Administration is a record of the original work done by

Mr. Chris Jose (Reg No: 121115) during the period of his study in the School of

Management and Business Studies, Priyadarshini Hills, Kottayam under my supervision

and guidance and the report or any part thereof has not been submitted elsewhere for any

other degree, diploma or other similar title of any other University.

Place: Dr. K. Sreeranganadhan

Date: DIRECTOR


3


DECLARATION

I, Chris Jose, hereby declare that this Report on

―ORGANIZATION STUDY AT ACC LIMITED – MADUKKARAI CEMENT

WORKS, COIMBATORE‖ is my original work and that it has not previously formed

the basis for the award of any Degree, Diploma or other similar title of any University or

Institution.

- Chris Jose

Place:

Date:

Email: [email protected]

Mob: 9496333809

mailto:[email protected]


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ACKNOWLEDGEMENT

The success that has been accomplished in my project would not have

been possible without the timely help and guidance rendered to me by many people. This

study became possible through the wholehearted co-operation of many persons and well

wishers.

I am grateful to Dr. K. Sreeranganathan, Director, School Of Management and Business

Studies, Kottayam for permitting me to take up this report work on Organization Study.

I am grateful to Dr. Saji M Abraham, Faculty co-ordinator, School Of Management and

Business Studies, Kottayam for all the provision made available to me.

I express my deep sense of gratitude to Shri R. Rajendrakumar sir (Manager HR), Mrs.

Padma (Manager HR), Shri Maheshkumar Sir, (Assistant Manager HR) Ms. Neha Guptha

(Quality control department), Ms. Nithra Yogi (AFR laboratory), Mr. Husain (Deputy

Manager –Procurement department) of M/s ACC Limited-Madukkarai Cement Works,

Coimbatore and Shri Ninan Thayi sir (Manager –Logistics), Mr. S.N. Vijayakumaran

Nair (Sales Head), Mr. Prasad Parsewar (Dy. Manager – Marketing) Mr. Jaxen K.J

(Manager – special projects) of M/s ACC Limited – Sales unit, Edappally, Cochin for

kind co-operation and assistance extended during my report work on Organization Study.

I extend my sincere thanks to the Officials of the College Office and Library for

providing the necessary facilities for completing this work.

I am also thankful to my family and friends who supported me throughout the project

work. I will be failing in my duty if I do not acknowledge the deep debt of gratitude I

owe to the authors whose writings have provided an insight to the intricacies of the

subject.

- Chris Jose


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ABSTRACT

Organization study is usually conducted in a well structured and reputed

organization. The basic objective of conducting organization study is simply to

understand and learn the actual structure and working of each and every department of an

organization. The main purpose of the study is to observe, analyze and interpret ate the

functions and procedures of each and every department of the selected organization.

From the study conducted in ACC Limited, Madukkarai Cement Works a basic idea of

functioning of various departments of the company has got. Hence the organization

study conducted in ACC Limited, helped to a large extent to experience the real work life

situation in an organization. Cement is a binder, a substance which sets and hardens

independently, and can bind other material together. The working of the cement plant has

been studied in depth with the history of the plant, sources of raw materials, production

of cement, functioning of various departments adopted.


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CONTENTS

SL No. CHAPTER TITLE PAGE

No.

1

CHAPTER--I

INTRODUCTION

7

2

CHAPTER--II

AN OUTLOOK OF--TYPE

OF INDUSTRY

10

3

CHAPTER--III

COMPANY-- PROFILE

22

4

CHAPTER--IV

DEPARTMENTAL

ANALYSIS-

* Production department

* Quality control department

* Finance department

* HRM department

* ARF department

* Procurement department

* General stores department

* Environment department

* CSR department

* Maintenance department

* System department

* Marketing department

* Internal audit section

45

48

62

78

91

112

119

122

129

136

140

147

152

166

5

CHAPTER--V

SWOT--ANALYSIS

168

6

CHAPTER--VI

EVALUATION AND

SUGGESTIONS

174

7

CHAPTER--VII

LEARNING EXPERIENCE

177


7


8 CHAPTER--VIII CONCLUSION &

BIBLIOGRAPHY

179

CHAPTER I

INTRODUCTION


8


ORGANIZATION STUDY AT

ACC LIMITED, MADUKKARAI CEMENT WORKS

INTRODUCTION

Organization Study helps to convert the theoretical knowledge and

practical knowledge into experienced one. An organization is a social unit of people,

systematically structured and managed to meet a need or to pursue collective goals on a

continuing basis. Organizational study conducted by the School of Management and

Business Studies is a training program that helps management students gain knowledge

and practical working conditions of an organization. The purpose of training program is

to have an exposure to the real life situations relevant to business areas and strengthen the

conceptual knowledge gained from the industry.

Organization study is usually conducted in a well structured and reputed organization.

The basic objective of conducting organization study is simply to understand and learn

the actual structure and working of each and every department of an organization. The

main purpose of the study is to observe, analyze and interpret ate the functions and

procedures of each and every department of the selected organization.

From the study conducted in ACC Limited, Madukkarai Cement Works a basic idea of

functioning of various departments of the company has got. Hence the organization

study conducted in ACC Limited, helped to a large extent to experience the real work life

situation in an organization.

OBJECTIVES OF THE STUDY

Understand the structure of the organization


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To understand the Functional Departments of the organization

To know the plans, policies, and procedures of the organization

To fulfill the requirements of the curriculum

To familiar with the day to day activities of the organization

To know how the functions of the various Departments co-ordinate

To know how the Qualities maintained

To know how HR is managed effectively

To understand how the firm faces tight competitions

To know the social responsibility of the organization

SCOPE OF THE STUDY

The organization study conducted in ACC Limited, Madukkarai Cement Works gave a

basic idea of functioning of various departments of the company. It helped to understand

the constraints and problems involved in carrying out a business successfully. The study

gave the experience of working in an organization and also helped to understand the

environment of the organization.

It helped to view and analyze the functioning of various departments and also helped to

view the decision making and implementation strategies in an organization.

SOURCES OF INFORMATION

Primary data were collected through the personal visits and interview with the staff and

executives of various departments of ACC Limited, Madukkarai Cement Works.

Secondary data were received from the Annual Report and Magazines of the company

and from the website of the company.

LIMITATION OF THE STUDY


10


A detailed study was not possible because of the time constrains. However, efforts have

been made to incorporate all aspects related to ―Organization Study‖ in ACC Limited,

Madukarai Cement Works. The study is based on the information supplied and inference

that is made from the statement of experts. The techniques used for the analysis has its

own limitations and these limitations have its own effect on the report also.

CHAPTER II

AN OUTLOOK OF

TYPE OF INDUSTRY


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An Outlook of Indian Cement Industry

Cement is one of the core industries which plays a vital role in

the growth and expansion of a nation. The demand for cement depends primarily on the

pace of activities in the business, financial, real estate and infrastructure sectors of the

economy. Cement is considered preferred building material and is used worldwide for all

construction works such as housing and industrial construction as well as creation of

infrastructures like ports, roads, power pants, etc. Indian cement industry is globally

competitive because the industry has witnessed healthy trends such as cost control and

continuous technology up-gradation.

The Indian cement industry is extremely energy intensive and is the third largest user of

coal in the country. It is modern and uses latest technology, which is among the best in

the world. Also, the industry has tremendous potential for development as limestone of

excellent quality is found almost throughout the country.

INVENTION OF CEMENT

Ever since civilizations first started to build, the world has sought a man made bonding

material that would bind stones into a solid, formed mass. During the Paleolithic Age,

men used to enjoy adequate shelter provided by nature. The Bronze Age witnessed the

use of building materials from a clay based mixture and air hardening lime. The

Egyptians advanced to the discovery of lime and gypsum mortar as a binding agent for

building such structures as the Pyramids. The Greeks made further improvements and

finally the Romans developed cement that produced structures of remarkable durability

(Cement Association of Canada 2006). The secret of Roman success in making cement

was traced to the mixing of slaked lime with Pozzolana, a volcanic ash from Mount

Vesuvius. This process produced cement capable of hardening under water. During the

Middle Ages this art was somehow lost. In the 18th century, big efforts started in Europe

to understand why some limes have hydraulic properties (Cimenterie Nationale 2007).

John Smeaton often referred to as ‗father of civil engineering‘ in England concentrated

his work in this field and made the first modern concrete by adding pebbles as a coarse

aggregate and mixing powered brick into the cement in 1759. A number of discoveries

followed. It was in 1817 that Louis Vicat conducted work on the hydraulic nature of the

lime-volcanic ash mixture. He was the first person to accurately determine the


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proportions of limestone and silica required to make the mixture of cement. He published

the results of his research, but did not apply for a patent. Finally, in 1824 Joseph Aspdin

patented the basic process of slower-setting cement. He addressed this as ‗Portland

cement‘ due to the fact that in appearance and hardness, it resembled the upper Jurassic

rock found in the region of Portland, in southern England (Lafarge 2004).

CEMENT INDUSTRY IN INDIA

The Indian cement industry is the second largest cement producer just behind China , but

ahead of the United States and Japan. The government of India giving boost to various

infrastructure projects housing facilities and road networks as a result of which the

cement industry in India is currently growing at an enviable pace. It is also predicted that

the cement production in India would rise to 262.61 MT.

The Indian cement industry comprises of 140 large and, more than 365 mini cement

plants , where majority of the production of cement (94%) in the country is by large

plants.

The industry‘s capacity at the beginning of the year 2009-10 was 217.80 million tones.

During the period of April—Sept 2009, the Indian cement companies have produced 11

MT cement. The Indian cement industry has witnessed a phenomenal capacity addition

to the tune of about 52 MT tones in the last two financial years which accounted for

about 24% of the industry‘s capacity of 218 mn tones at the end of FY09. In the last two

financial years, the cement industry has registered a double-digit growth in capacity

addition compared to moderate growth of 3-7% registered during period FY 03-07. As a

result, industry‘s capacity utilization rate which showed a rising trend up to FY07 has

dropped to a level of 83% in FY09.

In FY09, the GDP growth slowed down to 6.7% compared to the 9% growth reported in

FY08.

There is only one Central Public Sector Undertaking in the cement sector, i.e. Cement

Corporation of India, which has 10 units. There are 10 large cement plants owned by

various State Governments.

BEGINING OF INDIAN CEMENT INDUSTRY

The attempt to produce cement in India dates back to 1889 when a Calcutta firm

attempted to produce cement from Argillaceous (kankar). But the first organized effort on

mass scale to manufacture Portland cement commenced in Madras (Washermanpet), in

1904, by South India Industries Limited (Cement Manufacturers Association 1964;

Gadhok 2000). The factory could not succeed hence it failed. However, it was in 1914

that the first commissioned cement-manufacturing unit in India was set up by India


13


Cement Company Limited at Porbandar, Gujarat, with an installed capacity of 10,000

tonnes and production of 1000 tonnes. Subsequently two plants; one at Katni (M.P.) and

another at Lakheri (Rajasthan) were set up. The First World War gave positive stimulus

to the infant industry. The following decades saw increase in number of plants, installed

capacity and production. This period can thus be called the Nascent Stage of Indian

cement industry.

The problem of supply outstripping demand was significant in early period of the

industry. Problem of disposal of cement was aggravated by the prejudice with which

indigenous cement was regarded. This was followed by a price war between the

producers where they resorted to cutting down of prices and selling at below production

cost. This situation forced many companies into liquidation.

It was then when the government of India intervened into the market and referred the

cement industry to the Tariff Board. The board recommended protection by government

and cooperation among existing cement units. All these events resulted in formation of

Indian Cement Manufacturers‘ Association in 1925 whose main function was to regulate

prices in the industry. In 1927, Concrete Association of India was formed whose two

main objectives were to educate public about the use of cement and to play an active role

in popularizing Indian cement. The next step in the direction of rescuing cement industry

was the formation of Cement Marketing Company of India Limited in 1930 to promote

and control the sale and distribution of cement at regulated prices.

After all these initiatives, the sales increased along with more plants. In 1936, eleven

companies, except Sone Valley Portland Cement Company Limited, merged to form

Associated Cement Company Limited (ACC). In 1937, Dalmiya Jain Group set up five

factories with installed capacity of 575000 tonnes and ACC added four more plants. With

all these expansions, price war again started off which resulted into a significant decrease

in prices. But in the post world war period, setting up of Department of Planning and

independence of the country provided fresh impetus to the industry.

The price and distribution control system on cement, implemented in 1956, aimed at

ensuring fair prices to producers and consumers all over the country, thus reducing

regional imbalances, and at reaching self-sufficiency within a short time period. Although

due to slow growth in capacity expansion and rising cost in the industry, the government

had to increase the fixed price several times. However, these price increases as well as

financial incentives to enhance investment, showed little effect on the industry. In spite of

the fact that government exercised no control over the Indian cement industry all through

the Third Five Year Plan (1961-1967), growth was low due to inadequate retention price

and lack of adequate financial resources to the existing companies.

CEMENT BUSINES----PERFORMANCE AT A GLANCE


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2011 2010 Change %

Production- million

tones

21.37 20.83 2.6

Sales volume-

million tones

21.52 21.01 2.4

Sales value-Rs.crore 8027.19 7282.87 10.2

EBITDA % 32.3% 25.5%

CEMENT PRODUCTION AND GROWTH

Domestic demand plays a major role in the fast growth of cement industry in India. In

fact the domestic demand of cement has surpassed the economic growth rate of India.

During 2008—2009 total cement consumption in India stood at 178 million tones while

exports of cement and clinker amounted to around 3 million tones. However, cement

consumption growth in FY09 at 8.4% has been able to maintain its multiplier factor with

GDP growth at 1.25 times.

Growth in Cement Demand

Figures in Million Tones

2010-11 Apr—Nov 2011

Domestic Consumption 178 100

Year –on-Year Growth(%) 8.4 12.5

Cement production during April to January 2009-10 was 130.67 million tones as

compared to 115.52 million tones during the same period for the year 2008-09.

Despatches were estimated at 129.97 million tones during April to January 2009-10

whereas during the same period for the year 2008-09, it stood at 115.07 million tones.

Cement Production & Despatches

Description 2010-11 2009-10

(April—January) in MT

Cement Production 130.67 115.52

Cement Despatches 129.97 115.07


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GROWTH OF INDIAN CEMENT INDUSTRY

The extent of concentration in the Indian cement industry has increased over the years.

This concentration is mainly because of the focus of the larger and the more efficient

units to consolidate their operations by restructuring their business and taking over

relatively weaker units.

The following table shows the growth of Indian cement industry at the end of five year

plan (including mini and white pants):

End Year of the Plan Capacity (M.t.) Production (M.t.) Capacity Utilization

(%)

Pre- Plan Period (1950-

51)

3.28 2.20 67

1st Plan (1955-56) 5.02 4.60 92 2nd Plan (1960-61) 9.30 7.97 86

3rd Plan (1965-66) 12.00 10.97 91 4th Plan (1973-74) 19.76 14.66 74 5th Plan (1978-79) 22.58 19.42 86 6th Plan (1984-85) 42.00 32.13 72 7th Plan (1989-90) 61.37 45.42 74 8th Plan (1996-97) 105.26 76.22 72 9th Plan (2001-02) 145.99 106.90 73 10th Plan (2006-07) 177.83 161.66 91


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REGIONAL CONCENTRATION

Cement, being a bulk commodity, is freight intensive and transporting cement over long

distances can prove to be uneconomical. This has resulted in cement being largely a

regional play with the industry divided into five main regions, viz., North, South, West,

East and the Central region.

In terms of capacity historically, the southern region has always dominated the industry

and is excess in capacity owing to the availability of limestone, but the western and

northern regions are the most lucrative markets. East has most of the consumption of

cement as of now due to growing infrastructure. When we look at the evolution of the

industry, it can be seen that distribution of capacities of cement in India has now been

more balanced thus reducing the concentration in the southern region of the country.

In the Northern region, the major consumer is Uttar Pradesh with a highest growth rate of

31%. In the Eastern region, the major consumer is West Bengal, but the highest growth

rate of 38% has been achieved by North Eastern states. In the Western region, although

Madhya Pradesh is the highest producer of cement, the total consumption is highest in

Maharashtra with a consumption of 12.29 million tones. In the Southern region, while the

highest consumption takes place in Tamil Nadu followed by Andhra Pradesh, Karnataka

and Kerala, the growth rate in consumption has increased by 21% in Andhra Pradesh,

17% in Kerala, 14% and 11% in Karnataka and Tamil Nadu respectively.

In FY09, all the regions except the Western and the Northern region have outperformed

the industry in consumption growth. The Eastern region continued its buoyant

performance and registered the highest cement consumption growth of 11.3%.The

Southern and Central regions also reported impressive double-digit growth of 10.4% in

cement consumption. But, the Northern region has registered the lowest growth in the

cement demand on yoy basis. Comparatively, poor demand growth registered by the

Western region was on account of high base of the last year and also slightly subdued

demand.

TECHNOLOGY UP-GRADATION


17


Cement industry in India is currently going through a technological change as a lot of up

gradation and assimilation is taking place currently, almost 93% of total capacity is based

entirely on the modern dry process, which is considered as more environment –friendly.

Only the rest 7% uses old wet and semi dry process technology. There is also a huge

scope of waste heat recovery in cement plants, when lead to reduction is the emissions

level and hence improves the environment.

COMPONENTS FOR MANUFACTURING THE CEMENT

The Indian cement industry is the second largest producer of quality cement. Indian

Cement Industry is engaged in the production of several varieties of cement such as-


18


The basic raw components of manufacturing the various type of cement are as

follows-

Ordinary

Portland

Cement (OPC)

Portland

Pozzolana

Cement (PPC)

Oil Well Cement

Portland Blast

Furnace Slag

Cement (PBFS)

Rapid Hardening

Portland Cement

White Cement

Sulphate Resisting Portland

Cement


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MAJOR PLAYERS IN INDIAN CEMENT INDUSTRY

There are a number of players prevailing in cement industry in India. However , there are

around 17 big names that account for more than 70% of total cement production in India.

Raw Components

Limestone

Iron Oxide

Aluminum

Oxide

Silica


20


The total installed capacity is distributed over around 129 plants, owned by 54 major

companies across the nation.

List of Cement Companies in India.

A

ACC Limited

Ambuja Cements Limited

Andhra Cements Ltd

B

Barak Valley Cements Ltd

Bheema Cements Ltd

Binani Cement Ltd

Birla Corporation Limited

Burnpur Cement Ltd

C

Chettinad Cement Corporation Limited

D

Dalmia Cement (Bharat) Limited

Deccan Cements Ltd.

E

Everest Industries Ltd

G

Grasim Industries Limited

Gujarat Sidhee Cement Ltd

H

Heidelberg Cement India Ltd

Hyderabad Industries Ltd

I

Indian Hume Pipe Company Ltd

http://info.shine.com/company/ACC-Limited/873.aspx

http://info.shine.com/company/Ambuja-Cements-Limited/877.aspx

http://info.shine.com/company/Andhra-Cements-Ltd/2459.aspx

http://info.shine.com/company/Barak-Valley-Cements-Ltd/1753.aspx

http://info.shine.com/company/Bheema-Cements-Ltd/1536.aspx

http://info.shine.com/company/Binani-Cement-Ltd/1807.aspx

http://info.shine.com/company/Birla-Corporation-Limited/878.aspx

http://info.shine.com/company/Burnpur-Cement-Ltd/1490.aspx

http://info.shine.com/company/Chettinad-Cement-Corporation-Limited/879.aspx

http://info.shine.com/company/Dalmia-Cement-Bharat-Limited/848.aspx

http://info.shine.com/company/Deccan-Cements-Ltd/1613.aspx

http://info.shine.com/company/Everest-Industries-Ltd/4439.aspx

http://info.shine.com/company/Grasim-Industries-Limited/849.aspx

http://info.shine.com/company/Gujarat-Sidhee-Cement-Ltd/1537.aspx

http://info.shine.com/company/Heidelberg-Cement-India-Ltd/2056.aspx

http://info.shine.com/company/Hyderabad-Industries-Ltd/4120.aspx

http://info.shine.com/company/Indian-Hume-Pipe-Company-Ltd/4177.aspx


21


J

J. K. Cement Limited

JK Lakshmi Cement Ltd

K

Kalyanpur Cements Ltd.

Katwa Cements Ltd

Kesoram Industries Ltd.

M

Madras Cements Limited

Mangalam Cement Ltd.

N

NCL Industries Ltd.

Nirman Cements Ltd

O

OCL India Ltd.

P

Panyam Cements & Mineral Inds. Ltd

Prism Cement Ltd

R

Rose Zinc Ltd

S

Sagar Cements Ltd.

Sainik Finance & Inds. Ltd.

Sanghi Industries Ltd

Saurashtra Cement Ltd.

Shiva Cement Ltd

Shree Digvijay Cement Company Ltd.

Somani Cement Company Ltd

Sri Vasavi Inds. Ltd

Srichakra Cements Ltd

Stresscrete India Ltd

http://info.shine.com/company/J-K-Cement-Limited/882.aspx

http://info.shine.com/company/JK-Lakshmi-Cement-Ltd/2103.aspx

http://info.shine.com/company/Kalyanpur-Cements-Ltd/1615.aspx

http://info.shine.com/company/Katwa-Cements-Ltd/2828.aspx

http://info.shine.com/company/Kesoram-Industries-Ltd/1681.aspx

http://info.shine.com/company/Madras-Cements-Limited/852.aspx

http://info.shine.com/company/Mangalam-Cement-Ltd/1617.aspx

http://info.shine.com/company/NCL-Industries-Ltd/1621.aspx

http://info.shine.com/company/Nirman-Cements-Ltd/2387.aspx

http://info.shine.com/company/OCL-India-Ltd/1619.aspx

http://info.shine.com/company/Panyam-Cements-Mineral-Inds-Ltd/2075.aspx

http://info.shine.com/company/Prism-Cement-Ltd/2082.aspx

http://info.shine.com/company/Rose-Zinc-Ltd/2916.aspx

http://info.shine.com/company/Sagar-Cements-Ltd/1614.aspx

http://info.shine.com/company/Sainik-Finance-Inds-Ltd/3006.aspx

http://info.shine.com/company/Sanghi-Industries-Ltd/3277.aspx

http://info.shine.com/company/Saurashtra-Cement-Ltd/1623.aspx

http://info.shine.com/company/Shiva-Cement-Ltd/2632.aspx

http://info.shine.com/company/Shree-Digvijay-Cement-Company-Ltd/1625.aspx

http://info.shine.com/company/Somani-Cement-Company-Ltd/1540.aspx

http://info.shine.com/company/Sri-Vasavi-Inds-Ltd/3792.aspx

http://info.shine.com/company/Srichakra-Cements-Ltd/1539.aspx

http://info.shine.com/company/Stresscrete-India-Ltd/2198.aspx


22


T

The India Cements Limited

U

Udaipur Cement Works Ltd

UltraTech Cement Limited

V

Vinay Cements Ltd

Visaka Industries Ltd

The following table shows the position of the major cement industries in Indian cement

industry:

Overall Rankings and Scores of Cement Firms

Firm Rank Score

Ambuja Cements Ltd. 1 68.77

Grasim Industries 2 61.99

ACC LTD. 3 60.72

Ultratech Cement Ltd. 4 60.24

India Cements Ltd. 5 54.73

Prism Cement Ltd. 6 53.41

Madras Cements Ltd. 7 52.28

Birla Corporation Ltd. 8 48.14

Industry Average 45.45

Dalmia Cement ( Bharat)

Ltd.

9 45.15

Shree Cement Ltd. 10 43.75

JK Cement Ltd. 11 37.17

Chettinad Cement

Corporation Ltd.

12 34.54

Century Textiles & Inds.

Ltd.

13 31.77

Sanghi Industries Ltd. 14 31.68

J K Lakshmi Cement Ltd. 15 31.32

Binani Cement Ltd 16 31.08

O C L India Ltd. 17 25.91

http://info.shine.com/company/The-India-Cements-Limited/3081.aspx

http://info.shine.com/company/Udaipur-Cement-Works-Ltd/3046.aspx

http://info.shine.com/company/UltraTech-Cement-Limited/884.aspx

http://info.shine.com/company/Vinay-Cements-Ltd/1538.aspx

http://info.shine.com/company/Visaka-Industries-Ltd/4151.aspx


23


CHAPTER III

COMPANY PROFILE


24


COMPANY PROFILE

ACC (ACC Limited) is India's foremost manufacturer of cement and

concrete. ACC's operations are spread throughout the country with 16 modern cement

factories, more than 40 Ready mix concrete plants, 20 sales offices, and several zonal

offices. It has a workforce of about 10,000 persons and a countrywide distribution

network of over 9,000 dealers.

Since inception in 1936, the company has been a trendsetter and important benchmark for

the cement industry in many areas of cement and concrete technology. ACC has a unique

track record of innovative research, product development and specialized consultancy

services. The company's various manufacturing units are backed by a central technology

support services centre - the only one of its kind in the Indian cement industry.

ACC has rich experience in mining, being the largest user of limestone. As the largest

cement producer in India, it is one of the biggest customers of the domestic coal industry,

of Indian Railways, and a considerable user of the country‘s road transport network

services for inward and outward movement of materials and products.

Among the first companies in India to include commitment to environmental protection

as one of its corporate objectives, the company installed sophisticated pollution control

equipment as far back as 1966, long before pollution control laws came into existence.

Today each of its cement plants has state-of-the art pollution control equipment and

devices.

ACC plants, mines and townships visibly demonstrate successful endeavors in quarry

rehabilitation, water management techniques and ‗greening‘ activities. The company

actively promotes the use of alternative fuels and raw materials and offers total solutions

for waste management including testing, suggestions for reuse, recycling and co-

processing.

MADUKKARAI CEMENT WORKS


25


ACC has taken purposeful steps in knowledge building. We run two institutes that offer

professional technical courses for engineering graduates and diploma holders which are

relevant to manufacturing sectors such as cement. The main beneficiaries are youth from

remote and backward areas of the country.

ACC has made significant contributions to the nation building process by way of quality

products, services and sharing expertise. Its commitment to sustainable development, its

high ethical standards in business dealings and its on-going efforts in community welfare

programmes have won it acclaim as a responsible corporate citizen. ACC‘s brand name is

synonymous with cement and enjoys a high level of equity in the Indian market. It is the

only cement company that figures in the list of Consumer Super Brands of India.

HISTORY

ACC CEMENT has an interesting story - one that inspired a book.

ACC was formed in 1936 when ten existing cement companies came together under one

umbrella in a historic merger - the country's first notable merger at a time when the term

mergers and acquisitions was not even coined. The history of ACC spans a wide canvas

beginning with the lonely struggle of its pioneer F E Dinshaw and other Indian

entrepreneurs like him who founded the Indian cement industry. Their efforts to face

competition for survival in a small but aggressive market mingled with the stirring of a

country's nationalist pride that touched all walks of life - including trade, commerce and

business.

The first success came in a move towards cooperation in the country's young cement

industry and culminated in the historic merger of ten companies to form a cement giant.

These companies belonged to four prominent business groups - Tatas, Khataus, Killick

Nixon and F E Dinshaw groups. ACC was formally established on August 1, 1936.

Sadly, F E Dinshaw, the man recognized as the founder of ACC, died in January 1936;

just months before his dream could be realized.

F. E. Dinshaw – the founder of ACC


26


ACC stands out as the most unique and successful merger in Indian business history, in

which the distinct identities of the constituent companies were melded into a new

cohesive organization - one that has survived and retained its position of leadership in

industry. In a sense, the formation of ACC represents a quest for the synergy of good

business practices, values and shared objectives. The use of the plural in ACC's original

name, The Associated Cement Companies Limited, itself indicated the company's origins

from a merger. Many years later, some stockbrokers in the country's leading stock

exchanges continued to refer to this company simply as 'The Merger'.

OBJECTIVES OF COMPANY

1. To ensure a steady growth of business by strengthening the company‘s position in

its core business of cement.

2. To maintain the high quality of the company‘s products and services and ensure

its supplying at fair prices.

3. To ensure welfare of company‘s employees.

4. To be trusted and ethical organization.

5. To strive continuously and maintain the leadership of the cement industry through

selective acquisition, modernization expansion and establishments of a wide and

efficient marketing network.

6. To ensure environmental protection and well being of the community.

POLICY OF COMPANY

ACC has an effective Quality Policy System

Manufacture Quality Products.

Customer satisfaction.

Continual improvement in quality.

VISION STATEMENT OF COMPANY

ACC‘s Vision vividly declares the company‘s commitment to community and sustainable

development issues making this an essential part of the five interdependent and

intertwined business goals for the company. The essence of this resolve is contained in

the fifth goal or ―diamond‖ which envisages that ACC inspires trust and respect.


27


The ―5 diamonds‖ of ACC‘s Vision Statement is as follows-

ACC is a leading organization.

ACC is a customer driven organization.

ACC is a great place to work.

ACC is the most efficient cement producer

ACC inspires trust and respect

This statement is synonymous with balancing the Triple Bottom Line – defined as the

achievement of three interdependent and mutually reinforcing goals of-

Environmental protection

Economic development

Social development

VISION STATEMENT OF ACC LTD.

―To be one of the most respected companies in India; recognized for

challenging conventions and delivering on our promises.‖


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VALUES OF ACC LTD.

STRENTH

Building strong and lasting relationships. Conducting everyday

operations internally in true team spirit. Acting responsibly with

integrity and demonstrating strength of character.

PERFORMANCE

Delivering on our promises to each other and to our stakeholders.

Always ensuring excellence. Working together and striving to delight

customers with best solutions.

PASSION

Caring, being dedicated, committed and passionate about everything

we do.

ORGANIZATION STRUCTURE

ACC‘s organization structure was revised in 2006. Added thrust was given to sustainable

development with the creation of separate cells at the corporate office and plants to

coordinate activities relating to waste management, alternate fuels and raw materials,

corporate social responsibility and occupational health and safety. All these were placed

under the supervision of the Managing Director.


29


BOARD OF DIRECTORS

MANAGING DIRECTOR

REGIONAL HEADS

BUSINESS HEAD

(West Region)

BUSINESS

HEAD

(South Region)

BUSINESS

HEAD

(North Region)

BUSINESS HEAD

(East Region)

HR Manger AFR Manger

Procurement

Manger Finance Manger

CSR Coordinator

Marketing

Manger

Production

Manger

Stores

Manger


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BOARD OF DIRECTORS

The list of Board Of Directors of the company are as follows--

BOARD OF DIRECTORS

Mr. N. S. Sekhsaria

Chairman

Mr. Paul Hugentobler

Deputy Chairman

Mr. Kuldip Kaura

Chief Executive officer and Managing Director

Mr. S M Palia

Mr. Naresh Chandra

Mr. Markus Akermann

Mr. M L Narula

Mr. R A Shah

Mr. Shailesh Haribhakti

Mr. Aldan Lynam

Mr. Sushil Kumar Roongta

Mr. Ashwin Danl


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PRODUCTS PROFILE

The company manufactures Portland cement for general construction

while its blended products, acknowledged for outstanding durability, include fly ash and

slag-based cements. Both these varieties of cement offer high quality and special

properties that defy the harshest environments. In addition to conserving valuable mineral

resources and reducing waste, these blended cements also help cut down the emission of

carbon dioxide and assist in checking global warming. ACC is sensitive to consumer

needs. When the company realized that large construction activities would require large

amounts of cement it set up the country‘s first facility for distribution of cement in bulk,

as far back as 1956. To meet the needs of other consumers it introduced cement in small

25 kilogram bags as also jumbo bags of 1MT.

Today, of course, mechanized mega construction projects receive cement from ACC

delivered in bulk tankers – a welcome change from the conventional cement bag. ACC

was also the first company in India to introduce Ready Mix Concrete on a commercial

basis. A transit concrete mixer is now a familiar sight in India‘s major cities. Ready Mix

Concrete and Bulk Cement have enabled the construction industry to introduce

sophisticated practices for the speedy completion of large infrastructure projects.

ACC is mainly engaged in the production of the following products—

ORDINARY

PORTLAND

CEMENT

BLENDED

CEMENT

PORTLAND

SLAG CEMENT


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ORDINARY PORTLAND CEMENT

1. 43 Grade Cement (OPC 43 Grade)

ACC cement is the most commonly used cement in all constructions including

plain and reinforced cement concrete brick and stone Masonry, floors and

plastering. It is also used in the finishing of all types of buildings, bridges,

culverts, roads, water retaining structures etc.

2. 53 Grade Cement

This is an Ordinary Portland cement which surpasses the requirement of

IS:12269-53 Grade. It is produced from high quality clinker ground with high

purity gypsum.

It‘s 53 Grade OPC provides high strength and durability to structure and balanced

phase composition.

It is available in specially designed 50 kg bags. It surpasses BIS specifications (IS

8112—1989 for 43 Grade OPC) on compressive strength levels.

BLENDED CEMENT

1. Fly-ash based Portland Pozzolana Cement

This is special blended cement, produced by inter-grinding higher strength

ordinary Portland cement clinker with high quality processed fly-ash based on

norms set by the company‘s R&D division. This unique, value-added product has

hydraulic binding properties not found in ordinary cements. It is available in

specially designed 50-kg bags.

ACC Fly-ash based PPC is made by intergrading high strength clinker with

specially processed fly ash. This imparts a greater degree of fineness to ACC Fly-

ash based PPC Cement, improved workability properties while mixing, and makes

concrete more corrosion resistant and impermeable. All of this makes for better

long-term strength and improved corrosion resistance and therefore, greater life

for your constructions. ACC Fly-ash based PPC is an eco-friendly cement.

In concrete made from ordinary cements, moisture reacts with calcium

bicarbonate, which leaches out of the concrete, leaving pores that reduce its

strength. ACC Fly-ash based PPC has ingredients which react with calcium

hydroxide to form CSH get, to provide additional strength, which actually makes

the concrete grow in strength over the years. It also produces less heat of

hydration and offers greater resistance to the attack of aggressive water than

normal Portland cement.

ACC Fly-ash based PPC easily replaced OPC and provides additional advantages

for practically all types of construction application-commercial, residential,


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bungalows, complexes, foundation, columns, beams, slabs and RCC jobs. It is

especially recommended for mass concreting work, and where soil conditions and

the prevailing environment take heavy toll of constructions made with ordinary

cements.

Due to its inherent characteristics, ACC Fly-ash based PPC makes very corrosion

resistant concrete that is superior to concrete made with OPC. It is more

impermeable to Oxygen, CO2, chlorides etc. Leaching of alkalis is reduced and

the alkaline environment around steel is maintained.

ACC Cement is marketed in specially designed 50 kg. bags.

PORTLAND SLAG CEMENT

This is slag-based blended cement that imparts strength and durability to all structures. It

is manufactured by blending and inter-grinding OPC clinker and granulated slag in

suitable proportions as per our norms of consistent quality. PSC has many superior

performance characteristics which give it certain extra advantages when compared to

ordinary Portland cement. It is available in specially designed 50-kg bags.

ACC'S ECO-FRIENDLY CEMENT IN ONE YEAR

Cement major ACC is likely to launch in the next one year environment-friendly cement

that will emit less carbon dioxide (CO2) while being produced.

The new environment-friendly cement will emit 400-450 kg of CO2 per tonne at the time

of burning limestone during its production, while the same is about 900 kg in the case of

conventional cement.

According to sources in the know of the development, ACC‘s R&D division at Thane has

been working on this for the last one year and is now carrying out pilot production.

―The development is almost complete and ACC is now doing the pilot testing. It will take

about another one year to commercially launch the product as pricing, branding and some

other issues have not been decided yet,‖ a source said.

The new product will cost more than the ordinary cement, sources said.

The company is yet to decide whether the final product will be marketed by the group

firm or Ambuja Cement which shares the R&D centre at Thane.

As per the plan, the company will introduce the product in a few areas initially. Later, it

will expand distribution of the new cement across India based on customer feedback.

When contated, a company spokesperson declined to comment on the development.


34


―The new product is being developed by using lesser limestone. The quality remains

same as some additives are used during the production process, besides improvement in

grinding techniques,‖ another source said.

Cement production has always remained a concern for global warming due to the high

energy requirements and the release of significant amounts of CO2.

Besides, ACC has embarked upon an ambitious project for substituting five per cent of its

annual coal requirement of about five million tonnes over the next three years with waste

generated by cities and industries. It has already replaced two per cent of its coal

requirement with all types of wastes.

The company, which saved Rs 47 crore last year on fossil fuels, aims to save Rs 60 crore

in 2011 by burning waste, primarily plastics, at its plants.

Global cement major Holcim-controlled ACC has an installed production capacity of 30

million tonnes per annum in India.

Apart from waste management, the company has also undertaken a drive to plant jatropha

and castor trees in and around its mines, plants, townships and waste land. As of 2010, it

had planted two million saplings out of its target of five million trees.\

ACC: VOLUME, VALUATION BOOST

VOLUME BOOST

ACC has marked excellent 14 per cent growth in volumes to 17.76 million

tonnes (mt) during January-September 2011 — translating into an annualised capacity

utilisation of 77 per cent. On a comparable basis, during April-September 2011, ACC

volumes at 11.56 mt have marked 15.1 per cent growth annually, compared to 0.2 per

cent by Ultratech and one per cent by Ambuja Cement, a group firm, partly aided by a

low base.

ACC, facing capacity constraints during last year, had been a laggard in terms of volume

growth. It had posted negative growth for first three quarters of 2010, as its brownfield

expansions in Orissa (1.2 mt) and Karnataka (3 mt) got delayed and took time to stabilise.

Further, post completion of the 3-mt-per-annum clinkering plant in Chanda

(Maharashtra), along with the 25-Mw captive power capacity starting contributions, the

cement capacity increased to 30.6 mt per annum by the end of 2010. Its captive power

capacity increased to 346 Mw. These have led to the growth in volumes seen so far

during 2011, and given the availability capacity volumes should continue to rise at a

healthy pace.


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BETTER REALISATIONS

Along with volumes boost, realisations have also improved. The increase in cement price

(ranging from Rs 25-50 for each 50-kg bag) undertaken by players in southern states

since September 2010 have sustained. Prior to September 2010, the prices in the southern

states had been much below the national average of around Rs 225 a bag (of 50 kg).

These have helped ACC post better realisation looking at its good presence in south.

Though overall cement capacity additions in the country have outpaced the demand, by

maintaining production discipline cement players have been able to sustain higher prices

in rest of India too. ACC saw realisations of Rs 4,052 a tonne (Rs 202.60 per bag) during

the April-June quarter, 5.7 per cent higher over the same period last year. Further, during

the sluggish September quarter which was marred by monsoon, realisations should come

at Rs 3,772 a tonne or Rs 188.60 per bag (up 11.3 per cent year on year), according to

Motilal Oswal Research estimates.

Notably, as the monsoon season ended, the last 15-20 days have also seen cement prices

going up by Rs 50 per bag in northern states, to an extent due to an increase in costs.

Analysts feel while demand in October may take a slump due to the festive season, the

coming months should see better demand. They feel though a major boost to demand will

only come after large infrastructure projects take off, cement players should be able to

keep prices at reasonable levels by maintaining volume discipline.

COAL RISK

Coking coal remains the basic raw material for cement production. While cement

manufacturers had been dealing with firm coal prices, a new problem has cropped up for

them. ACC procures about 20 per cent of its requirements from e-auctions from Coal

India. However, for October 2011, Coal India has decided to offer e-auction quota to

power companies facing acute shortage of coal. While cement majors generally keep 30-

40 days of coal inventory and for now Coal India has decided for diverting supplies

during October only, if the problem persist cement producers will have to shift to high-

cost imported coal. According to Emkay Global estimates, if the problem persists for the

October-December period, CY2011 EPS of ACC can be negatively impacted by 1.2 per

cent. Also, there is likelihood of Coal India going for price hikes considering the wage

revisions at the company, which could further impact ACC‘s margins.

Secretarial & Share departments receive ISO 9001 – 2008 Certification

The Secretarial Compliance division & Share Department have received ISO 9001 –

2008 Certification from Det Norske Veritas (DNV) A S Certification Services.

The ISO 9001 -2008 Certificate certifies the robustness of quality management processes.

ACC is one of the very few organizations whose Secretarial Compliance and Share

Department processes have received ISO certification.


36


SUBSIDIARIES AND ASSOCIATES

1. ACC Concrete Limited

ACC set up India's first commercial Ready Mix Concrete (RMX) plant in

Mumbai in 1994 which together with the promotion of bulk cement has played a

key role in redefining the pace and quality of construction activity in our large

cities and mega infrastructure projects.

The Ready Mix Concrete business of ACC was reorganized as a separate wholly

owned subsidiary which was incorporated as ACC Concrete Limited with

headquarters in Mumbai. Today this company is one of the largest manufacturers

of Ready Mix Concrete in India with a countrywide network of over 30 plants,

with modern equipment and a large fleet of transit mixers.

2. ACC Mineral Resources Limited

ACC's wholly owned subsidiary, The Cement Marketing Company of India

Limited, was renamed as ACC Mineral Resources Limited (AMRL) in May 2009

with an objective of securing valuable mineral resources, such as coal for captive

use. ACC Mineral Resources Limited has already entered into Joint Venture

arrangements for prospecting, exploration and mining coal from the coal blocks in

Madhya Pradesh and West Bengal. The company is also exploring other

opportunities for securing additional coal and gypsum resources in India and

abroad

3. Bulk Cement Corporation (India) Limited

Situated at Kalamboli, in Navi Mumbai (formerly New Bombay), this company

caters to bulk cement requirements of the city of Mumbai and its environs. It has

two cement storage silos with a capacity of 5,000 tons each. The plant receives

cement in bulk from ACC plants at Wadi. The plant has its own special purpose

railway wagons and rakes and its own railway siding. The first of its kind in India,

BCCI is equipped with all the facilities required by increasingly sophisticated

construction sites in a bustling metropolis, including a laboratory, a fleet of

specialized trucks and site silos for the convenience of customers and is capable

of offering loose cement in bulk-tanker vehicles as well as packed cement in bags

of varying sizes from 1 tone down to 25 kg bags. BCCI is situated strategically on

the outskirts of Mumbai, just off the new Mumbai-Pune Expressway. It is a

landmark structure spread over 30 acres of land.


37


4. Lucky Minmat

ACC acquired 100 per cent of the equity of Lucky Minmat Private Limited. This

company holds limestone mines in the Sikar district of Rajasthan, and helps

supplement limestone supply to the Lakheri Plant.

5. National Limestone Company Private Limited

National Limestone Company Private Limited is a wholly owned subsidiary. The

company is engaged in the business of mining and sale of limestone. It holds

mining leases for limestone in the state of Rajasthan.

6. Encore Cements & Additives Private Limited

ACC acquired 100 percent of the financial equity of this company which is a slag

grinding plant in Vishakhapatnam in coastal Andhra Pradesh. This company

became a wholly-owned subsidiary of ACC in January 2010.

CEMENT PLANTS OF ACC LIMITED

Here is a list of our cement plants, showing Plant-wise capacity----

PLANTS PLANTS CAPACITY (MTPA)

Bargarh 1.20

Chaibasa 0.87

Chanda 1.00

Damodhar 0.53

Gagal 4.40

Jamul 1.58

Kymore 2.20

Kudithini 1.10

Lakheri 1.50

Madukkarai 1.18

Sindri 0.91

Wadi 2.59

New Wadi Plant 3.20

Thondebhavi 1.60

Tikaria 2.31


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BUSINESS STRATERGY OF ACC

2009 2010 2011 2013 2012

Organization

Bottom Line

Market Share

Corporate

Citizenship

Competitiveness

Create Safe Place to Work

Become employer of choice

Reputed Corporate entity

Leadership in sustainable development

Enhance community living standards

Continual improvement in environment

performance

Maintain Leadership Position in Industry

Leadership in Quality, Services and Cost

Efficiency

Accountable, Responsive and Motivated

Achieve Internal target for growth in EBITDA

over2007


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ACC - MILESTONES

1936 Incorporation of The Associated Cement Companies Limited on August 1,

1936.

1936 First Board Meeting of The Associated Cement Companies Limited held at

Esplanade House, Mumbai on November 10, 1936.

1937 With the transfer of the 10th company to ACC, viz. Dewarkhand Cement

Company, the formation of ACC is complete on October 23, 1937.

1944 ACC‘s first community development venture near Bombay

1947 India‘s first entirely indigenous cement plant established at Chaibasa in

Bihar

1952 Village Welfare Scheme launched

1955 Sindri cement works used the waste product calcium carbonate sludge from

fertilizer factory at Sindri.

1956 Bulk Cement Depot established at Okhla, Delhi

1957 Technical training institute established at Kymore, Madhya Pradesh.

1957 Katni Refractories

1961 Blast furnace slag from TISCO used at the Chaibasa Unit to manufacture

Portland Slag Cement for the first time in India.

1961 Manufacture of Accocid Cement, which resists the corrosive action of acids

and chemicals.

1961 Oilwell Cement manufactured at ACC Shahabad Cement Works in

Karnataka for cementation of oilwells upto a depth of 6,000 feet.

1961 Manufacture of Hydrophobic (waterproof) cement at ACC Khalari Cement

Works in Bihar.

1962 Manufacture of Accoproof, a waterproofing additive.

1965 ACC‘s Central Research Station (CRS) established at Thane

1965 Manufacture of Portland Pozzolana Cement.

1965 Manufacture of Calundum, a High Alumina Binder; Firecrete, Low Density

Alumina Castables and High Alumina Refractory Cement.

1968 Advent of computers in ACC for data processing and designing

management information and control systems.


40


1968 ACC supplied and commissioned one-million-tonne iron ore pelletising

plant ordered by TISCO

1971 Manufacture of Whytheat Castables A, K, C and Cal-Al-75

1973 Take-over of The Cement Marketing Company of India (CMI)

1977 ACC receives ASSOCHAM first national award for the year 1976 instituted

for outstanding performance in promoting rural and agricultural

development activities.

1978 Introduction of the energy efficient precalcinator technology for the first

time in India. Full scale commercial production based on MFC technology

at Wadi in 1979.

1979 ACC wins international contract for operation and management of a new

one million tonne cement plant at Yanbu-Ras Biridi in Saudi Arabia.

1982 Commissioning of the first 1 MTPA plant in the country at Wadi,

Karnataka.

1984 ACC achieves a breakthrough in import substitution by developing and

supplying a special G type of oil well cement to ONGC.

1987 ACC develops a new binder for use at sub-zero temperatures, which is

successfully used in the Indian expedition to Antarctica.

1992 Incorporation of Bulk Cement Corporation of India, a joint venture with the

Government of India.

1993 ACC starts the commercial manufacture of Ready Mixed Concrete at

Mumbai.

1995 ACC selected as Most Respected Company in India by Business India.

1998 Commissioning of the 0.6 MTPA cement grinding unit at Tikaria, Uttar

Pradesh.

1999 Commissioning of captive power plants at the Jamul and Kymore plants in

Madhya Pradesh.

1999 Tata group sells 7.2% of its stake in ACC to Ambuja Cement Holdings Ltd,

a subsidiary of Gujarat Ambuja Cements Ltd. (GACL)

2000 Tata Group sells their remaining stake in ACC to the GACL group, who

with 14.45% now emerge as the single largest shareholder of ACC.

2001 Commissioning of the new plant of 2.6 MTPA capacity at Wadi, Karnataka

plant, the largest in the country, and among the largest sized kilns in the

world.


41


2002 ACC wins PHDCCI Good Corporate Citizen Award

2003 IDCOL Cement Ltd becomes a subsidiary of ACC

2004 IDCOL Cement Limited is renamed as Bargarh Cement Limited (BCL).

2004 ACC raises US $ 100 million abroad through Foreign Currency Convertible

Bonds (FCCB‘s) for US$ 60 million and Global Depository Shares (GDS‘s)

for US $ 40 million. Both offerings are listed on the London Stock

Exchange.

2004 ACC named as a Consumer Superbrand by the Superbrands Council of

India, becoming the only cement company to get this status.

2004 GreenTech Safety Gold and Silver Awards awarded to Madukkarai Cement

Works and Katni Refractory Works by Greentech Foundation for

outstanding performance in Safety Management System.

2005 ACC receives the CFBP Jamnalal Bajaj Uchit Vyavahar Puraskar Certificate

of Merit – 2004 from Council For Fair Business Practices.

2005 Holcim group of Switzerland enters strategic alliance with Ambuja Group

by acquiring a majority stake in Ambuja Cements India Ltd. (ACIL) which

at the time held 13.8 % of the total equity shares in ACC. Holcim

simultaneously makes an open offer to ACC shareholders, through Holdcem

Cement Pvt. Limited and ACIL, to acquire a majority shareholding in ACC.

Pursuant to the open offer, ACIL‘s shareholding in ACC increases to 34.69

% of the Equity share capital of ACC.

2005 Commissioning of Modernisation and Expansion project at Chaibasa in

Jharkhand, replacing old wet process technology with a new 1.2 MTPA

clinkering unit, together with a captive power plant of 15 MW.

2005 Financial accounting year of the company changed to calendar year January-

December

2006 Subsidiary companies Damodhar Cement & Slag Limited, Bargarh Cement

Limited and Tarmac (India) Limited merged with ACC

2006 ACC announces new Workplace policy for HIV/AIDS

2006 Change of name to ACC Limited with effect from September 1, 2006 from

The Associated Cement Companies Limited.

2006 ACC receives Good Corporate Citizen Award 2005-06 from Bombay

Chamber of Commerce and Industry

2006 New corporate brand identity and logo adopted from October 15, 2006

2006 ACC establishes Anti Retroviral Treatment Centre for HIV/AIDS patients at


42


Wadi in Karnataka– the first ever such project by a private sector company

in India.

2007 ACC partners with Christian Medical College for treatment of HIV/AIDS in

Tamil Nadu

2007 Sumant Moolgaokar Technical Institute completes 50 years and reopens

with new curriculum

2008 Ready mixed concrete business hived off to a new subsidiary called ACC

Concrete Limited.

2008 ACC Cement Technology Institute formally inaugurated at Jamul on July 7.

2008 First Sustainable Development Report released on June 5.

2008 ACC wins CNBC-TV18 India Business Leader Award in the category India

Corporate Citizen of the year 2008

2008 Project Orchid launched to transform our Corporate Office, Cement House

into a green building.

2009 ACC received the Jamanalal Bajaj "Uchit Vyavahar Puraskar" of Council

for Fair Business Practices

2009 ACC is allotted coal blocks in Madhya Pradesh and West Bengal.

2009 ACC's new Grinding plant of capacity 1.60 million tonnes inaugurated at

Thondebhavi in Karnataka.

2010 Kudithini Cement Grinding Plant inaugurated in Karnataka on January 4,

2010 with a capacity of 1.1 MTPA of Portland Slag Cement.

2010 ACC acquires 100 percent of the financial equity of Encore Cements &

Additives Private Limited which is a slag grinding plant in Vishakhapatnam

in coastal Andhra Pradesh. This company became a wholly-owned

subsidiary of ACC in January 2010.

2010 ACC enters its platinum jubilee year - the first company in the cement

industry to achieve this status

2010 ACC receives FICCI Award for Outstanding Corporate Vision Triple

Impact Business Performance Social & Environmental Action &

Globalisation for 2009-10 - a unique award received for the first time

2011 World's largest kiln installed at ACC Cement Plant, Wadi, Karnataka with a

capacity of 12,500 tonnes per day creating new landmarks for cement

industry

2011 Central Control Room Building at ACC Chanda Plant, Maharashtra set up


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ACC AWARDS

ACC was the first recipient of ASSOCHAM‘s first ever National Award for outstanding

performance in promoting rural and agricultural development activities in 1976. Decades

later, PHD Chamber of Commerce and Industry selected ACC as winner of its Good

Corporate Citizen Award for the year 2002. Over the years, there have been many

awards and felicitations for achievements in Rural and community development, Safety,

Health, Tree plantation, A forestation, Clean mining, Environment awareness and

protection.

Awards & Accolades

Outstanding Corporate Vision, Triple Impact - Business Performance Social &

Environmental Action and Globalization for 2009-10 from Federation of Indian

Chambers of Commerce and Industry

Asia Pacific Entrepreneurship Award in two categories, Green Leadership and

Community Engagement by Enterprise Asia.

IMC Ramakrishna Bajaj National Quality Award – Gagal wins

Commendation Certificate and New Wadi plant wins Special Award for

Performance Excellence in the Manufacturing Sector, 2007.

National Award for outstanding performance in promoting rural and

agricultural development – by ASSOCHAM

Sword of Honour – by British Safety Council, United Kingdom for excellence in

safety performance.

Indira Priyadarshini Vrikshamitra Award – by The Ministry of Environment

and Forests for ―extraordinary work‖ carried out in the area of afforestation.

FICCI Award – for innovative measures for control of pollution, waste

management & conservation of mineral resources in mines and plant.

Subh Kuran Sarawagi Environment Award – by The Federation of Indian

Mineral Industries for environment protection measures.

Drona Trophy – by Indian Bureau of Mines for extra ordinary efforts in

Protection of Environment and mineral conservation in the large mechanized

mines sector.

Indo German Greentech Environment Excellence Award.

as a Green building, the first of its kind in an industrial environment


44


Golden Peacock Environment Management Special Award – for outstanding

efforts in Environment Management in the large manufacturing sector.

Indira Gandhi Memorial National Award – for excellent performance in

prevention of pollution and ecological development.

Excellent in Management of Health, Safety and Environment – Certificate of

Merit by Indian Chemical Manufactures Association.

Vishwakarma Rashtriya Puraskar trophy – for outstanding performance in

safety and mine working.

Good Corporate Citizen Award – by PHD Chamber of Commerce and Industry.

Jamnalal Bajaj Uchit Vyavahar Puraskar – Certificate of Merit by Council for

Fair Business Practices.

Greeentech Safety Gold and Silver Awards – for outstanding performance in

Safety Management Systems by Greentech Foundation.

FIMI National Award – for valuable contribution in Mining activities from the

Federation of Indian Mineral Industry under the Ministry of Coal.

Rajya Sthariya Paryavarn Puraskar – for outstanding work in Environmental

Protection and Environment Performance by the Madhya Pradesh Pollution

Control Board.

National Award for Fly Ash Utilization – by Ministry of Power, Ministry of

Environment & Forests and Dept. of Science & Technology, Govt. of India for

manufacturing of Portland Pozzolane Cement.

Good corporate citizen Award – by Bombay Chamber of Commerce and

Industry for working towards an environmentally sustainable industry while

pursuing the objective of creation of a better society.

National Award for Excellence in Water Management – by the confederation

of Indian Industries.

Golden Peacock Eco-Innovation Award 2008 – won by AFR Business for

efficient disposal of industrial wastes.

Best in Class Manufacturing Awards 2011-12 - Manufacturing Leadership in

Cement by Indira College of Engineering & Management.


45


IMC Ramkrishna Bajaj National Quality (RBNQ) Awards - Certificate of

Merit and Performance Excellence Trophy to ACC Gagal and Gagal DAV Sr

Sec.Public School.

Confederation of Indian Industry (CII) Best Environmental Practices award to ACC Damodhar.

Confederation of Indian Industry (CII) Energy award to ACC Wadi.

Safety Innovation Award 2011 from The Institution of Engineers' (India) to

ACC Kymore and Tikaria.

India Manufacturing Excellence Awards 2011 - Gold Certificates of Merit to

ACC Lakheri, Gagal, Wadi and Silver to Jamul by The Economic Times and

Frost & Sullivan.

Association of Business Communicators of India (ABCI) awards for

Accelerate (ACC intranet portal), Annual Report, Parivar and Screensavers.

Secretarial & Share processes receive ISO 9001 – 2008 Certification

ACC wins 4th Global Initiative for Restructuring Environment &

Management (GIREM) Award for Company of the Year 2011

Greentech CSR Platinum award 2011 in cement sector by Greentech

Foundation to ACC Damodhar

Greentech Environment Award 2011 by Greentech Foundation to Alternative

Fuels & Raw Materials; Gold Category in cement sector to ACC Lakheri

Golden Peacock Award for Eco-Innovation by World Environment Foundation

ACC wins Dun & Bradstreet Rolta Corporate Award 2010 - leader in Cement

category.

10th Annual Greentech Safety Award 2010 by Greentech Foundation to ACC

Chaibasa, Chanda, Gagal, Lakheri, Madukkarai and Tikaria. Tikaria won the

award in platinum category while Lakheri bagged Gold and Chaibasa,

Madukkarai, Jamul, Sindri and Wadi won in Silver category.


46


CHAPTER IV

DEPARTMENTAL ANALYSIS


47



The brand ACC enjoys a high level of equity in the Indian market. ACC‘s brand equity

was found to be the strongest among its key competitors. ACC is a brand with meaning

not just to customers but to other stakeholders such as shareholders, employees and

vendors.

The true index of ACC‘s greatness is not only its turnover, not only its quantum of profits

but its well defined Organization Structure- backed by a systematic and well organized

departments.

ACC consists of a set of various departments backed by a loyal and dedicated workforce

and other resources which lays down the foundation of building a strong, passionate and

confident organization i.e. ACC.

ACC consists of a number of departments. From the study conducted in ACC

Madukkarai Cement Works we can broadly classify the departmental structure of ACC

into the following --


48



→ PRODUCTION DEPTT.

→ QUALITY CONTROL DEPTT.

→ FINANCE DEPTT. → Time Keeping Deptt.

INT

ER

NA

L A

UD

IT D

EP

AR

TM

EN

T

→ HRM DEPTT. → → Safety Deptt.

→ AFR DEPTT. → Security Deptt.

→ PROCUREMENT DEPTT.

→ GENERAL STORES DEPTT.

→

→ ENVIRONMENT DEPTT.

→ CSR DEPTT.

→ MAINTAINANCE DEPTT.

→ SYSTEM DEPTT.

→ MARKETING DEPTT.


49


PRODUCTION DEPARTMENT

Production Department is considered as the heart of an organization. It is an area of work

where the core products of an organization take its physical form.

ACC have a well structured as systematic Production Department which is engaged in the

process of cement and concrete production.

The Production Department of ACC concentrate on ‗4S‘ system of management, they are

as follows:

Seiri – Separate the necessary from unnecessary item

Seiton – Arrange orderly and label

Seiso – Clean the work place and keep clean

Seiketsu – Constant practice of Seiri, Seiton & Seiso

OBJECTIVE OF PRODUCTION DEPARTMENT

The main objective of Production Department is – ―To produce a quality oriented

cement and concrete through a well structured production procedure‖.


50


PLANT LAYOUT

Map –key

00. Limestone Quarry and Crushing plant

01. Limestone Stockpile

02. Additives Hopper

03. Additives Storage

04. Raw Mill Building


51


05. Blending and Storage Silo

06. Pre Heater

07. Gas Conditioning Tower and ESP

08. Kiln

09. Cooler

10. Deep Bucket Conveyor

11. - 12. Clinker/Gypsum storage

13. Coal Mill Building

14. Cement Mill and Bag House

15. Cement Storage Silo

16. Packing and Dispatch

17. Central Control Room

Plant lay out simply refers to the arrangements of the machines, equipments and other

physical facilities within the factory premises. ACC Plants usually follow ―Process

Layout‖ i.e. similar machines are placed in one place (work area) according to the

operation or functions they perform.


52


MINING DEPARTMENT

CRUSHER DEPARTMENT

RAW-MILL DEPARTMENT

(LOW- GRADE SLURRY)

BALL-MILL

DEPARTMENT

(HIGH -GRADE SLURRY)

MIXER BASIN 1 & 2

MIXER BASIN 3 & 4

FLOTATION DEPARTMENT

FILTERATION

DEPARTMENT

KILN

DEPARTMENT

CEMENT-MILL

DEPARTMENT

PACKING HOUSE

DEPARTMENT

DESPATCH

SECTION


53


ORGANIZATION CHART OF PRODUCTION DEPARTMENT

The Production Department of ACC is provided with adequate, experienced and

competent personnel for carrying out the activities of production department. The

organization chart of the department is shown below:

GENERAL MANAGER

PRODUCTION MANAGER

ASST. MANAGER

(PLANT)

WORKS

SUPERIDENT-II

ENGINEER (QC)--I

ASST. MANAGER

(QC)

WORKS

SUPERIDENT-III WORKS

SUPERIDENT- I

ENGINEER (QC)--II


54


PRODUCTION TURNOVER

ACC is a reputed and strong manufacturer of cement within the country.

ACC strive to retain their position as India‘s foremost manufacturer of cement and

concrete with a countrywide bouquet of 16 modern cement factories that have a capacity

of 26 million tones per annum to be increased to 30 million tones by the end of 2010.

Hence overall ACC‘s annual production capacity is 26 million tones per annum. The

annual production capacity of ACC Madukkarai plant is 7.5 million tones per annum with

a semi-wet technology of manufacturing. Earlier at the starting stage its production

capacity was only 0.6 million tones per annum.


55


DEPARTMENTAL FUNCTION

The functioning of Production Department of Madukkari Plant of ACC is somewhat

different from other plants of ACC. This is basically because the basic raw material

obtained from the mines of Madukkari plant is of low quality. Hence in order to increase

its quality up to the mark, Madukkarai plant practices the semi wet process along with

wet and dry process.

In other plants of ACC they use to follow wet process and dry process only but in

Madukkarai plant of ACC they undergo through wet process – semi wet process – dry

process.

The production department of Madukkarai plant is basically divided into various sub-

departments. These sub-departments are known as Zones. Each zone of production

department have a zone name, owner (head of the sub-department). The following are

the various zones of production department----

ZONAL -- STRUCURE

ZONE AREA

ZONE—PEARL MINING DEPARTMENT

ZONE—RUBY CRUSHER DEPARTMENT

ADDITIVE STORAGE HOPPER

ZONE—SAPPHIRE

BALL-MILL DEPARTMENT

FLOTATION DEPARTMENT

ZONE—DIAMOND

RAW-MILL DEPARTMENT

MIXER-BASIN NO. 1 & 2

MIXER BASIN NO. 3 & 4

ZONE—EMERALD

CENTRAL CONTROL ROOM

FILTERATION DEPARTMENT

KILN DEPARTMENT

CLINKER/GYPSUM STORAGE

COAL MILL BUILDING

ZONE—CORAL CEMENT- MILL DEPARTMENT

CEMENT STORAGE SILO

ZONE—GARNET PACKING HOUSE DEPARTMENT

DESPATCH SECTION


56


The following are the main functions of each zone of production department:

Zone-Pearl

1. Mining Department

The major raw-material for cement production is limestone. The limestone

most suitable for cement production must have some ingredients in specified

quantities i.e. calcium carbonate, silica, alumina, iron etc.

Typically, cement plants locations are based upon the availability of good

quality limestone in the vicinity. But in case of Madukkarai plant, the

limestone available in mines are not upto mark. ACC Madukkarai plant

basically has two mines from where lime stones are obtained i.e. Madukkarai

quarry which is located at a distance of 4 kms. and at Walayar quarry located

at a distance of 22 kms from the plant. The limestones obtained from these

mines are usually in the form huge rocks. Hence, it undergo quarrying

process. The quarrying operations are done by the cement producer using

the open cast mining process. Quarrying is done through drilling and

subsequently, using heavy earthmoving equipment such as bulldozers, pay

loaders and dumpers.

The quarried raw material is then transported to the cement plant by vehicles

like wagons and trucks.

The limestone (CaO) obtained from these quarries are usually of 74-75%

quality but actual required quality is around 83-95%.

Zone - Ruby

2. Crusher Department

Limestone from mines is brought to the crusher department. The quarried

limestone is normally in the form of big boulders, ranging from a few inches

to meters in size. These varying sizes of limestone need to be crushed to a

size of about 6 to 8 inches in order to be prepared for finish grinding.

Crusher Department usually have two sections – Primary Crusher(300 tons

per hour) and Secondary Crusher(400 tons per hour).

Primary crusher

The limestone from mines is brought to the plant site by trippers (20 tons

capacity) and halpack (40 tons per halpack) and then it is dumped into

dumpers. Then through laminated conveyers it is sent to primary crusher.


57


The lime stones are crushed to the size of 6-10 inches in ‗Jaw Type‘ primary

crusher then through belt conveyers it is transported to the secondary crusher.

Secondary Crusher

In secondary crusher the primary crushed limestone further reduced to the

size of less than 1 inch. Then the secondary crushed limestone is passed to

vibrating screen which helps to separate fine material with that of course

material.

Then the fine material is forwarded to other department for further process

and course material is transferred again to secondary crusher for reprocessing.

3. Additive Storage Hooper

In order to required composition of raw material, certain additive such as iron

ore, bauxite, laterite and fluorspar are added in required quantities. These

additives are stored at the plant in separate hopper and are extracted using

belt conveyers in conjunction with belt weighing equipment. This ensures

that only the required quantities are extracted and are added to the raw

material.

Zone – Sapphire

4. Ball Mill Department

Crushed limestone from secondary crusher is fed to Ball Mill. As we know

that the quality composition of lime stone required is different from that of

actual received composition. So in order to make this limestone fit for

production of final product the corrective material i.e. iron ore (Fe2 O3),

Alumina (Al2 O3 ), Silica (SiO2 ) is added with limestone and then grounded

with water to make ‗high grade slurry‘.

Ball Mill usually has two parts – Ball Mill 1 (57 ton per hour) and Ball Mill

2(25 ton per hour).

Ball Mill 1

The crushed limestone from secondary crusher is fed to Ball Mill 1 through

conveyers. In this mill the limestone is added up with corrective material and

they are grounded together with the help of grinding media.

Ball Mill 2


58


Then the above mixture is transferred to Ball Mill 2 where it is grounded with

water to form high grade slurry. Then this slurry is pumped to hydrocyclon

having 380 ton capacity which is placed at the top of the Ball Mill. Here the

high grade slurry get separated into fine slurry and course slurry.

Then the fine slurry is pumped to floatation department and course slurry will

again settled down to the Ball Mill 1 for reprocessing.

5. Floatation Department(Cell House)

Floatation Department deals with semi wet processing in order to make

quality oriented materials. In this department the fine slurry from Ball Mill

hydrocyclon is pumped to turbo mixer basin. Here the slurry undergoes

blending process in order to homogenize these different material efficiently to

counter act flectuations in the chemical compositions of the high grade slurry.

Then it is transferred to Hydrocyclon (350 ton, 250 tons) situated at the top of

the Floatation Department. Here again the slurry undergoes separation

process then the fine slurry will be transferred to thickener and course will be

transferred to cells. In cells the course slurry will be added up with the

reagents (caustic soda, soap stock and rosin) then as a result of processing in

cells, the fines are separated from course and then that will be transferred to

thickener and the course will be rejected.

Heavy course particles mainly silica is removed as rejects. From the

Floatation Tank is being used by the other industries and remaining used for

reclamation of worked out quarries.

The high grade fine slurry after removal of rejects is transported to the

thickener from where carbonate rich high grade slurry is removed and then

stored in floatation silos.

Zone - Diamond

6. Raw Mill Department

Crushed limestone from secondary crusher is fed to raw mills through

hoppers alongwith required quantity of bauxite, laterite and iron ore and

ground with water to make the ‗low grade slurry‘. Low grade slurry is basic

used to provide strength in the final product. This slurry prepared in raw mill

is then sent to hydrocyclon (350 tons) situated at top of raw mill, here the

fines are separated from course materials. Then the fine low grade slurry is

stored in raw mill silos.

7. Mixer Basin


59


There are usually 4 Mixer Basins. Required quantity of high grade slurry and

low grade slurry is mixed in Mixer Basin No. 1 and 2 where thorough mixing

is carried out. The slurry of required composition is then pumped to Mixer

Basin No. 3 and 4 from where it is pumped to Rotary Drum Filters.

Zone – Emerald

8. Filtration Department

The corrective slurry in Mixer Basin 3&4 is now quality wise reached but it

contains 34% moisture content in it. Filtration Department and Kiln

Department carries out the drying process.

The corrective slurry is pumped into the slurry header tank in Filtration Deptt

and then from there through pumps it is transferred into the Filter Drums (7).

These Filter Drums consists of Filter Blocks made up of cloths and these

Filter Blocks sucks up 20% of moisture contents from the corrective slurry.

After undergoing this filtration process the corrective slurry become kiln feed

or raw meal. So output of Filtration Deptt is Raw meal or Kiln feed. Then

the raw meal having 13-14% moisture content is fed into the Kiln Deptt from

the Filtration Department through a common belt conveyer.

9. Kiln Department

A kiln is the heart of any cement plant. It is basically a long cylindrical

shaped pipe, and rotate in horizontal position. Its internal surface is lined by

re factory bricks. Limestone and addictives are calcined in this. The output

of the kiln is called clinker.

This department mainly helps to suck up the remaining percentage of

moisture content from Kiln feed and also make it in powdered form by

supplying heat in excess amount.

The main fuel used in Kiln Deptt is coal (alongwith alternative fuel). The

raw meal is transferred from Filtration Deptt to the Crusher Dryer. Here a

heat up to 1800C to 200

oC is transferred by exhaust fan to make Kiln feed

into powder form having moisture content in it.

Pre-calcination

Kiln Feed is fed to the two stream top cyclone from crusher dryer through

impact weigh feeder, which partly enters into straight line calciner (SLC).

Hot air is supplied to SLC from grate Cooler. In SLC, Kiln feed undergoes

calcinations and later fed to bottom cyclone and then to rotary kiln.


60


Pre-processing in Rotary Kiln

When Kiln feed is transferred to Rotary Kiln, then it has a temperature of

900oC already (thus it helps to save coal usage). In Rotary kiln at 1400

oC,

Calcium carbonate in presence of fluxes undergoes sintering and clinker is

formed. Clinker is discharged to grate cooler for cooling. Hot air from

cooler is used as secondary air to kiln, tertiary air to SLC and Coal Mill for

drying. Then the clinker formed is stored in clinker silos.

Central Control Room

It is the nerve centre of the cement plant since all equipments of filtration,

kiln section is controlled from this place. It is the place from where all the

process parameters are controlled.

10. Clinker/Gypsum Storage

The output of the kiln is stored before it is fed to the cement mill for

conversion to cement. This storage is called clinker storage, if it is used for

clinker storage purpose. If the storage space is used for Gypsum storage, it is

called gypsum storage.

The storage may be of silo type or covered stacker reclaimer type or simply a

gantry type. Silo type clinker storage has been advantage that there is no dust

pollution and spillage of clinker. Same advantage can be achieved through

stacker reclaimer type as well. However, there is a little bit of dust generated.

Gantry type is not used in modern cement plants because of its environmental

unfriendly nature.

11. Coal Mill Building

The Coal Mill Building houses the mill for grinding lumpy coals. This fine

ground coal is used for burning in the kiln. The mills used for call grinding

and drying are either trumbling or roller mills.

Zone - Coral

12. Cement Mill

The basic raw material of a cement factory is clinker which is manufactured

in plant of ACC in the above steps.

Cement Mill is that part of plant which carries out the main function of a

cement factory i.e. production of final product cement and concrete. The

clinker produced in kiln is stored in clinker silos. Then through crane yard


61


the clinker is transported and dropped into hopper of cement mill and gypsum

is also added in it in appropriate quantity.

Cement Mill has two sections i.e. Cement Mill 1 and Cement Mill 2.

The clinker and gypsum comes in Mill 1 from hopper then in order to mix it

properly it is crushed in Mill 1 using grinding media (magnized steel ball

material). Then it comes in Mill 2 where fine crushing is done i.e. finished

grinding process.

Then after this final product is formed by adding appropriate composition of

each material (composition changes on basis of product type). The following

are the products types and their composition of ACC‘s Madukkarai plant:

Clinker + Gypsum + Slag = Portland Slag Cement (PSC)

Clinker + Gypsum = Ordinary Portland Cement (OPC)

Clinker + Gypsum + Fly Ash = Portland Poslana Cement

Clinker + Gypsum + Flotation Reject = Masanaory Cement(New

product)

13. Cement Storage Silo

This cement storage silo is used for storing the finished products – Cement

Zone – Garnet

14. Packaging House

The cement prepared in cement mill is send to cement silos. There are usually

5 cement silos situated in Packaging House. Among these 5 cement silos, the

silo 1 is for storing PSC cements and Silo 2 for OPC, Silo 3 for PPC and

Silo 4 for Masanaory cement.

Then using bucket elevator cement is put into static/rotary packers 1 & 2

from silos then it is loaded to trucks and thus transports to dispatch

department.

15. Central Despatch Section (CDS)

The cement bags loaded from packing houses in trucks and wagons will come

in CDS for carrying out dispatch procedure.


62


The truck drivers present the printed gate-pass slip in dispatch section issued

from Time Keeping Deptt. The officer is dispatch section then issue Delivery

Notes i.e. JJ Forms to truck drivers usually they issue 4 JJ Forms i.e. 1 for

company records, 1 for the receiving party and two for presenting in check

post (Chawadi Check Post and Walayar Check Post).

Usually from Madukarai plant the final product is transported mainly to

warehouses situated in Kerala (Palakkad, Trichur, Aluva & Kozhikode) and

to industries and other customers in Tamil Nadu itself.

Hence from dispatch section the goods are finally dispatched to the Market

from Production Department.

CEMENT PRODUCTION AND DESPATCHES IN APRIL 2012

Month

April -2012

Cement Production 2.17 million tonnes

Cement Despatches 2.07 million tonnes

April-2011



Cumulative

January-April 2012



January-April 2011




63


QUALITY CONTROL DEPARTMENT(QCD)

Quality Control Department mainly deals with the process of quality control and

assurance. ACC is highly concerned about the quality aspects of its products. They are

very conscious about there quality and services. Hence, each plant of ACC has there own

separate well structured and equipped Quality Control Department.

From the study conducted in ACC Madukkarai Cement Works plant, it become very

much clear that they focus on continuous improvement strategy i.e. Kaizen approach.

The quality department of ACC basically deals with and focus on the quality assurance

and control phenomena on a regular or continuous basis.

In ACC, the manufacturing process of Ordinary Portland cement and Portland poyyolana

cement is a continuous process and thus the quality and process control activities are

carried out at all stages of manufacturing process with the objective to achieve zero

defect and to ensure that the quality of cement produced surpasses the relevant IS

specification requirements with liberal margin and to satisfy the customer fully and

continuously.

QUALITY POLICY

Manufacture Quality Products

Customer satisfaction

Continual improvement in quality.

ORGANIZATION CHART

The Quality Control Department of ACC is provided with adequate experienced and

competent personnel for carrying out the activities of department. The organizational

chart of the department is shown below:


64


MANAGER PRODUCTION

↓

DY. / JT. MANAGER(QC)

↓

ASST. MANAGER (QC)

↓

↓

JR.ASST.ANALYST MATERIAL W/BRIDGE

↓ ↓ HANDLING TALLY CHECKER

GAUGERS TESTERS SUPERVISOR

↓ ↓ ↓

TESTING TESTING YARD

SAMPLE SAMPLE SUPERVISOR

BOYS BOYS ↓

HEOS

Quality Cells/Sections

Quality Control Department has four sections/cells. They are:

Chemical & Instrumental Analysis Laboratory (Main Lab)

Physical Testing Laboratory

Site Laboratory and

Flotation Laboratory

Microscopy

AFR

PSD


65


Chemical & Instrumental Analysis Laboratory

Chemical Analysis of raw materials, intermediate products and final products are

carried out in this laboratory. The main function of this laboratory is to test and

assure the chemical composition of raw material and intermediate products and final

products. It basically deals with the process of quality assurance regarding

composition of chemicals like limestone etc. at various stages of production.

Physical Testing Laboratory

Physical testing of raw materials, intermediate products and final products are carried

out in this laboratory. It basically deals with the process of assuring the strength and

quality grade of the cement cakes. It provide assurance regarding the durability of

product and also grade analysis of cement cake is performed in this laboratory.

Site Laboratory

This laboratory functions in all the three shifts. Round the clock quality control and

monitoring activities pertaining to flolakeon process are carried out in this laboratory.

It mainly deals with the process of monitoring and assuring the quality of kiln fud,

clinker cement. It deals with assurance of quality of output of each department in

order to judge its composition, strength ad durability etc.

Flotation Laboratory

Flotation Laboratory also functions in all the three shifts round the clock quality

control and monitoring activities pertaining to flotation process. This laboratory

mainly deals with the process of monitoring and controlling of quality at the flotation

stage. It is the most crucial stage in production in ACC plants because in this stage

the low quality raw material is converted into quality oriented raw material (clinker).

This laboratory mainly focuses on high grade quality of flotation stage and in this

laboratory residence analysis is performed.

Quality Control Functions

ACC has effectively pledged its reputation as the market leader in the quality of cement

by effective quality control functions of quality zone of ACC.

The Quality Control functions cover all the processes effecting the product quality. The

quality control functions include – inspection, sampling and testing of all the incoming

raw materials, in process materials and the finished products.


66


The test results so obtained from these tests are also known as parameters. Hence the test

parameters obtained are used for control of quality of incoming raw materials/in-process

materials and also for control of processes.

The desirable quality parameters and the minimum acceptance criteria with respect to in-

coming raw-materials in process materials and finished products are given under:

Acceptance criteria/Control of Important parameters at various stages of cement

manufacturing process:

Table (a)

Incoming Raw-Materials

Material Parameter Range

Desired Acceptable

Limestone, Walayar Total Carbonate 72 – 76 % 68% minimum

Limestone, Madukkarai Total Carbonate 74 – 80 % 72% minimum

Bauxite A12 03

Si 02

35 – 45 %

10 – 15 %

30% minimum

18% maximum

Iron Ore Fe2 03 60 – 95% 60% minimum

Laterite A12 03

Si 02

30 – 45 %

10 – 15 %

25% minimum

18% maximum

Fly Ash Combustibles

Specific

surface(M2/kg.)

2 – 7 %

350 – 400

12% maximum

320 minimum

Gypsum Purity as Ca SO4 ,

2H2O

Chloride content

75 – 95 %

0.3 – 0.8

65% minimum

1% maximum

Coal (imported) Ash content 10 – 15% 20% maximum

In-coming Raw-materials

The raw-materials used in manufacturing of cement at Madukkarai Cement

Works are limestone, Bauxite/Laterite, (i.e. aluminia as silica ) , Iron ore, fly ash

and gypsum, coal/lignite is used as a fuel in pyroprocessing.

Limestone

Received from company own two captive mines through, Walayar Mines

& Madukkarai mines. ACC to mine programme, drilling is carried out on

deposit as the drill cutting samples are analyzed by Quality Control

Department for total carbonate content which gives an advance

information to the mines department on quality of limestone before it is

blasted.


67


Quality of limestone is also monitored by analyzing quality of crushed

lime sample collected from crusher department.

Bauxite/Laterite/Fluoro sludge (Alumina as Silica)

It is used in raw mill as a corrective material for required alumina content.

Source wise daily average samples are analyzed for acceptability.

Iron Ore(Fez03)

Mill scale /Iron ore is used in Raw Mill as corrective material for required

iron content.

Quality Control Department analyze the source wise daily average

samples for acceptability.

Gypsum

It is used in required proportion in cement mills. Quality Control

Department analyze the source wise daily average samples of Gypsum for

acceptability or Quality assurance.

Fly ash

Fly ash is used as a pozzolanic material in manufacture of Portland

pozzolana cement in cement mills procured from established sources.

Weekly average composite samples are tested for assessing to conformity

to IS:3812.

Coal/Lignite/Alterative Fuel

Presently imported coal from China is being used as a fuel for the

pyroproceesing stage. Material Management Division of Corporate Office

organizes procurement of imported coal. Coal received by rail or road and

the quality is monitored.


68


Lignite and alternative fuel may also be carried out in accordance to work

instruction Nos. and standard test procedures.

The quality control department verifies the quality of incoming raw-

material against the purchase order specifications for deciding its

acceptability/rejection. If the material is meeting the requirement, it is

allowed to store at the designated places. In case of non-conformance, the

material is rejected and stored separately. However, if the non-

conformance is found to be marginal and satisfying the min acceptance

values as given in about table which will ensure no adverse effect on

product quality shall be accepted by imposing suitable penalty clause.

Manager Production is final authority for acceptance/rejection of these

materials. His decision is final as in no case shall be overridden by

anyone.

Sampling & Testing Plan for in-coming Raw-materials.

Details of Sample Parameters Frequence of

Sampling

Frequence of

testing

Purpose of

testing

Lime stone

Drill cut

TC As and when

received from

mines

As and when

received from

mines

To access

quality of

limestone

before blast

Bauxite / Laterite Moisture

A12 03

S1 02

Size

Daily receipts

source wise

Daily receipts To access

quality and

acceptance

Full Chemical

Analysis

Daily receipts

source wise

Fortnightly

composite

sample

Quality

Assurance

Iron Ore Moisture

Fez 03

Daily receipts

source wise


quality and

acceptance

Full chemical

analysis

Daily receipts

Source wise

Fortnightly

composite

sample

Quality

Assurance

Gypsum Moisture

Purity

Chloride

Daily receipts

source wise


quality and

acceptance

Full chemical

analysis

Daily receipts

Source wise

Fortnightly

composite

sample

Quality

Assurance


69


Fly ash Specific

surface, LR,

CR, drying

shrinkage &

full chemical

analysis

Daily receipts

Source wise

Weekly

composite

sample

Suitability for

cement

quality

Coal Moisture,

proximate

analysis

including CV

Daily receipts Ratewise

sample

To access

quality

Lignite/alternative

fuel

Moisture ash Daily receipts Dailywise To access

quality.

Packing Cement Bags

Cement is packed in HDPE (High Density Polyethyline) / PP (Poly propylene)

woven sacks and in paper bags conforming to companies specification formulated

by Material Management Division (MMD) of corporate office.

For each supply of bags the supplier is submitting the test reports, which

preserved by packing house department.

Lot of bag – sampled for quality check by quality control personnel.

Bags are checked for following parameters

Length and width of bag

Length of valve

Weight of bag

No. of stitches /decimeter

Tensile strength for length, width, top seam and bottom seam.

Taper test for branding

In case of paper bags following checks are made:

Length and width of bag

Length and width of valve

Weight of bag

The Quality Control Department forward test report for each lot of cement bags

received to Manager Commercial and to Packing House. Manager Commercial

decides the acceptance/rejection of lot and communicates to packing house

accordingly. Packing house ensures use of bags only from accepted lot.


70


Acceptance criteria / control of important parameters at various stages of cement

manufacturing process:

Table (b)

In-process Materials


Desired Acceptable

Flotation Mill fuels Residence on

72 Mesh

170 Mesh

4.5 – 6%

25 – 30%

6.5% maximum

35% maximum

Flotation Rejects Total Carbonate 20 – 30% 35% maximum

High Grade Slurry Residence on 72 Mesh

Residence on 170Mesh

Moisture content

Total carbonate content

1.5 – 3.0%

15 – 22%

32 – 34%

80 – 85%

4.0% maximum

25% maximum

35% maximum

78% minimum

Low Grade Slurry Residence on 72 Mesh


Moisture content

Total carbonate content

2.5 – 4.5%

20 – 28%

30 – 38%

35 – 75%

5.0% maximum

30% maximum

40% maximum

40% minimum

Kiln Feed Slurry Residence on 72 Mesh


Moisture content

Ca O

Fez 03

A12 03

2.8 – 3.2%

20 – 27%

32 – 35%

43 – 45%

2.5 – 3.2%

2.7 – 3.5%

3.5% maximum

32% maximum

36% maximum

43.5% min.

2% minimum

2.5% minimum

Filter cake Moisture content 13 – 17% 18% maximum

Fine coal kiln Moisture content

Residence on 72 mesh

170 mesh

3 – 6%

0.5 - 5.5%

5 – 26%

8% maximum

5.5% maximum

26% maximum

Clinker Litre weight

Gram/ltr.

Free Ca O

A12 03

Fez 03

CaO

108-1180

1.5 – 2.5%

5.0 – 6.0%

3.7 - 4.3%

64.0-65.0

1000 Min.

3.5% Max.

4.5% Min.

3% Min.

63.0%Min.


71


In process materials

Crusher Department

The output of crusher department is limestone. The quality check is

carried out by samples collected from product belt conveyor.

Raw Mill Department

The input of Raw Mill department is crushed limestone, ground in raw

mills along with required quantity of corrective materials and water for

producing low grade slurry.

Quality Control function involved here – check quality of low grade

slurry, its fineness and moisture content on the samples collected from

mill discharge as well as from low grade slurry silos.

The corrected slurry preparation takes place in mixer basins No. 1 & 2 by

releasing high grade and low grade slurry from silos in required

proportions. The corrected slurry is sampled from mixer basins and

checked for its quality, fineness and moisture content.

If parameters are found beyond set norms further correction is applied

which is followed by x-sampling and testing. On clearance from QC

Department the Raw Mill Dept. pump out the corrected slurry to mixer

basins 3 & 4 for feeding to the kiln.

Ball Mill and Flotation Department

The input of Ball Mill Dept. is crushed limestone which is grounded in

closed circuit ball mills. The quality control function involved in this

process is to check the quality and fineness of slurry which is the final

output from the ball mill and also the quality of enriched slurry which is

fed to thickener as quality of reject generated from the flotation process.

For purpose of quality control about 1 – 1 ½ litre of slurry samples are

collected from following points:

Ball Mill 350 mm Hydrocyclone fines for control of mill output

quality for each mill separately.

Thickener feed sample for ascertaining the level of enrichment for

each thickener separately.


72


Thickener under/low sample for ascertaining the quality of high grade

slurry from each thickener separately.

Reject sample for evaluation of material recovery from each raw

separately.

Kiln Department

The corrected slurry in Mixer Basin 1 & 2 of raw mill department is

pumped to mixer basin no. 3&4 of Kiln Dept. where from it is fed to the

slurry filters. The quality control functions involved in this process are

given below:

Kiln feed

Corrected slurry available in mixer basin 3&4 which is ready for feeding

to the slurry filters is called kiln feed. It is sampled from point of

overflow from constant head tank located at the top of slurry filtration

plant. About 1 – 1 ½ ltr. of sample is collected twice a shift and checked

for quality, moisture and fitness.

Filter cake

The slurry filter drums filter out the water from kiln feed and cake

produced is dislodged over the belt conveyors for feeding to the kiln

system. About ½ kg. sample of cake is collected from common belt

conveyor once in a shift and tested for moisture content.

Fine Coal

Coal which is used as a fuel is finally ground in a mill for firing to the kiln

system. About ½ kg. of fine coal sample is collected from discharge point

of screw conveyors for kiln once in a shift and tested for moisture, ash and

fineness.

Clinker

The output from Kiln system is clinker, which come out from cooler

discharge point. About 5 kg. sample is drawn every hour and part of

sample is sieved for litre weight determination and another part is kept

separately for preparation of daily average composite samples. The spot

clinker samples are also analyzed once in a shift for quality.


73


Cement Grinding

The clinker so produced is ground along with gypsum or gypsum and fly

ash for manufacture of OPC or PPC, as the case may be, in cement mills.

The QC function involves in this process are to check the fineness, setting

time and specific chemical parameters on periodic samples collected from

each mill separately. About 1 kg. sample is collected mill-wise hourly and

checked.

Grade Analysis

In this stage only grade test is also conducted the final product i.e. cement

undergoes physical test as per which a specific grade is fixed for each type

of cement. This grade act as a representative symbol of quality and

strength of final product in front of customer. Under this quality grade is

fixed by undergoing queering process.

Queering process is a process of keeping cement cake/concrete produced

in mold with water and sand in it in a certain pre-fixed proportion for a

period of 24 hours.

After period of 24 hours the quality control department will apply certain

level of pressure to the molded cement cake if it withstand pressure up to

stage of 16 mega Pascal then concrete is good otherwise bad in quality.

This is a case of fixing grade at base of one day test. There are other

criteria also:

1 day 16 mega Pascal 33 grade (now removed)

3 days 22 mega Pascal 43 grade



Hence this test conform the quality and strength of final product in a

visible form to the ordinary consumers also.


74


Acceptance criteria/control of important parameters of various stages of cement

manufacturing process.

Table (c)

Finished Products


Desired Acceptable

Cement Specific surface(m2/kg)

33 Grade OPC

43 Grade OPC

PPC

Residence on 45 Mesh

33 Grade OPC

43 Grade OPC

PPC

SO3 Content for

OPC

PPC

Setting Times

OPC (33 & 43)

Initial

Final

Setting Time-PPC

Initial

Final

Composite strength-3 days

OPC 33

OPC 43

PPC

Composite strength-28 day

OPC 33 grade

OPC 43 grade

PPC

290 I 30

310 I 30

340 I 30

18 – 28%

18 – 28%

15 – 20%

1.7 – 2.7%

1.5 – 2.5%

80 – 140

130 – 220

90 – 160

150 – 240

23-28 Mega Pascal

27-32 Mega Pascal

25-30 Mega Pascal

43-48 Mega Pascal

48-53 M. Pascal

45-50 M. Pascal

225 Min.

225 Min.

300 Min.

30% Max.

30% Max.

25% Max.

3.0% Max.

3.0% Max.

30 Min.

30 Min.

600 Max.

30 Min.

600 Max.

16 M.Pa. Min.

23 M.Pa. Min.

16 M.Pa. Min.

33 M.Pa Min.

43 M.Pa Min.

33 M.Pa Min.


75


Finished Products

The finished products of ACC are OPC 33 & 43 Grade and PPC (53 Grades).

Samples collected hourly from spout of packer machines in packing house

department for each type of cement separately.

Spot sample analyzed – check fineness and specific chemical parameters twice in

a shift.

Daily and weekly composite samples are prepared from hourly samples which

analysis for –full chemical and physical tests as specified under scheme of Testing

& Inspection (S TI) of BIS relevant for each type of cement.

Sampling/Testing Plan for finished products.

Manufacturing

stage

Details of

sample

Parameters to

be tested

Frequency of

sampling

Frequency of

Test

Packing House

Dept.

Cement for

each type

separately

Specific surface

Co O & SO3

Hourly Twice in a

shift

Complete

chemical &

Physical Tests

as per BIS‘s ST

Daily/Weekly

composite

sampling

Daily/Weekly.

Chemical analysis of clinker and cement is carried out in accordance to procedure

defined in IS:4032 and physical test on laboratory bass mill ground cement and

cement samples for grinding and packing stages are tested as per IS:4031. Fly ash

used for PPC manufacturing is also tested as per IS:1727.

Measurement Analysis & Improvement

a) Monitoring and Measurement of Quality

It is carried out at each stage of manufacturing process. When the above

mentioned quality parameters are out of required norms –corrective/preventive

actions are taken in process to bring it back so that in process materials at each

processing stage is meeting required quality norms so as to ensure that the quality

of final product.

However, if any –

Non conformance is observed then it means that required set of clinker quality is

not present. Hence segregate this from the process and store it separately with

proper identification.


76


Quality of this clinker will be separately evaluated and accordingly actions will be

taken for its usage for next process.

Necessary corrective/preventive actions shall be initiated to eliminate recurrence

of such instances.

b) Control of Non conforming product

The products which also not conform to specified requirement is identified and

controlled to prevent its unintended use on delivery.

The process of cement manufacture is not a batch process but continuous process

where control and corrective/preventive actions are taken continuously at each

unit operation stage and the monitoring of presence and quality parameters are

also continuously undertaken.

Where nonconformance is observed at any stage of manufacturing process then it

is communicated to concerned personnel for taking corrective/preventive actions

and rechecking is done for conformance.

If nonconformance is noticed for any parameter after the cement is ground and

stand in silos, the silo will be declared non-conforming by Manager Production

and the silo will be sealed.

Sr. Vice-President (CCO) inform, Manager Production responsible for identifying

the reason of non-conformance and notify concerned departments and decide

regarding re-categorize the material if conforming to their grades of cement or

decide reprocessing or disposal and recommend to Sr. Vice-President for final

decision on above.

Cement shall be re inspected as per quality requirements before allowed for

dispatch – in case of reprocessing.

c) Continual Improvement

Continually improve the efficiency of quality management system pertains to

working of QC Department, it has framed a department objective, target and

action plan to achieve the said objectives and targets and the same are given

below:

Objectives

To monitor and control quality of incoming raw material, in process monitor

finished products.


77


To manufacture quality products all …

Continual improvement in quality of products.

Action Plans

Testing the lime in clinker

Trial with use of minerals

Statistical Quality Control

The purpose of control chart is to obtain a state of statistical control by locating

and eliminating the assignable causes and then to maintain the production in this

state so as to ensure the manufacture of uniform product of acceptable quality. As

long as plotted point are within the control limits the process is left alone.

However, if point follows either below the lower control limit (LCL) or above the

upper control unit (UCL) there is a possibility of existence of some assignable

oases as an investigation is made and action taken for elimination of sure cases.

Quality Control Department prepares the process control chart for

Production Parameter Frequency

OPC-43 Grinding Specific Surface Daily Average

PPC – Grinding Specific Surface Daily Average

OPC 43 Loading 3 days compressive strength Daily Average

PPC Loading 3 days compressive strength Daily Average

d) Corrective and Preventive Actions

These actions are integral part of Quality and Process control during cement

manufacture. Quality norms and acceptance criteria have been fixed for raw-

materials, in process control and final products. These actions are taken whenever

there is a deviation from fixed parameters. These actions are taken by quality

control department directly or through the concerned process department are

given.


78


Table (d)

Corrective/Preventive Action

Parameter Corrective action Preventive action

Limestone TC low from

Walayar/Madukkarai

Quality feedback given to

mines department shifting

of limestone available in

stock

Taken by concerned Mine

Deptt.

Raw-materials (Bauxite,

Loterite, Iron ore)

Acceptance/rejection as per

contractual terms. Supplier

is suitably advised to

improve the quality.

Supplier‘s potential is

established by issuing trial

order in beginning and

testing samples from

source of supply also.

Lower JC of High grade

slurry

Adjustment in magnet

dosage, improvement in

limestone quality.

Charges in magnet

proportion. Preventive

action by mine dept. to

improve quality.

Deviation of chemical

composition of loco grade

slurry from set norms.

Block the low grade slurry

silo and release only in

small quantity to the mixer

basin 1&2.

Make suitable changes in

the corrective materials

add them to raw-mills.

Kiln feed slurry(mixer

basin 1&2) Deviation of

chemical composition

from set norms.

Required quantity of high

grade or low grade slurry is

released to mixer basin 1 or

2 to get the desired Kiln

feed composition.

Ensuring required quantity

of low grade & high grade

slurry is released to mixer

basin 1&2.

Fine coal variation in ash

content

Make suitable correction in

kiln feed quality.

Checking of coal quality at

discharge point.

Clinker-Ltr weight on

lower side

Taken by Kiln dept. Adjustment in chemical

composition of Kiln feed

slurry.

Clinker -Deviation of

chemical composition

from set norms.

Make suitable correction in

kiln feed quality.

Maintaining adequate

stock of slurry.

Cement-Deviate in

CoO&SO3 values from the

set norms.

Adjust the feed setting of

clinkers & gypsum

Control over moisture in

supply of gypsum.

Cement-Deviation in

setting time from the set

norms

Adjust the feed setting of

gypsum

Control over moisture in

supply of gypsum .


79


FINANCE DEPARTMENT

The brand ACC enjoys a high level of equity in the Indian market. ACC‘s

brand equity was found to be the strongest among its key competitors. This brand enjoys

among the highest level of equity in the global cement market.

ACC is a brand with meaning not just to customers but to other stakeholders such as

shareholders, employees and vendors. The name invokes an assurance of quality and

trust.

ACC has registered consistent improvement in its financial and overall economic

performance. The company‘s operations are aligned to maximize shareholders value.

Profitability has increased appreciably in the last five years. Organic growth is preferred

as it is faster and enables overall economies of scale.

ACC is currently implementing expansion projects that will raise to cement capacity from

22.40 million tones in December 2007 to 30.40 million tones by the close of 2010.

Thus this shows that ACC has well designed Finance Department which deals with

economic and income and expenditure related activities of the company.


ACC has a well structured Finance Department consisting of competent and experienced

personnel resources. The following chart provides an idea of structure of Finance

Department—

FINANACE MANAGER

ASST. FINANACE

MANAGER

Supdt. Accounts

Office Asst.

Sr. Accounts

Officer

( Books-Section)

Accounts Officer

(Establishment)

Accounts Officer

(Sales Accounts)

Accounts Officer

(Cash Section)


80


HIGHLIGHTS OF PERFORMANCE/EVENTS

Cement despatches were 23.68 million tonnes

during the year as compared to 21.17 million tonnes during 2010;

Consolidated income for the year under review was

Rs.10428 crore, an increase of 21% as compared to Rs.8619 crore in 2010;

Consolidated profit before tax increased in 2011 to

Rs.1505 crore against Rs.1415 crore in 2010;

Consolidated profit after tax was higher in 2011 at

Rs.1301 crore against Rs.1078 crore in 2010.

FINANCIAL PERFORMANCE OF ACC LTD

According to unaudited results of quarter 3, ACC Ltd has registered a net profit of

Rs.1675.766 million for the quarter ended September 30, 2011. This is substantially

higher than that of the same quarter last year when the company made a net profit of

Rs.1000.446 million. Total income of the firm has gone up to Rs. 23060.26 million for

the quarter ended September 30, 2011 and has shown a significant rise from

RS.17180.862 million which was posted during the same quarter one year back.


81


FINANCIAL PERFORMANCE

ACC has a well structured Finance Department. It basically deals with the process of

managing the financial structure and dealings of the company. It helps to build a strong

financial back ground and foundation for the growth of ACC and its subsidiaries.

The income statement and position statement helps to obtain an idea about the financial

performance of ACC. The following Tables briefly describe the financial performance of

ACC---


82



83



84


FINANCIAL STRUCTURE

The above table gives an idea of the financial position and profit making capacity of the

company. Thus, from that a detailed study on financial structure of the company can be

conducted in the following manner.

a) Capital Structure

ACC has basically raised its capital by issue of capital shares to various sections

at a face value of Rs. 10 per share. Hence the following shows the capital

structure of ACC.

CAPITAL STRUCTURE OF ACC

2010 2009

Rs. Crore

Rs. Crore

Rs. Crores

AUTHORISED

22,50,00,000 Equity shares of Rs. 10 each 225.00 225.00 10,00,00,000 Preference share of Rs. 10 each 100.00 100.00

325.00 325.00

ISSUED

18,87,88,179(Prev.year-18,87,29,706) 188.78 188.72

Equity share of Rs. 10 each

SUBSCRIBED

18,77,40,292(Prev.year-18,76,81,819) 187.74 187.68

Equity Share of Rs. 10 each fully paid)

Add: 3,84,060(Prev.Year 3,84,060)

Equity share of Rs. 10 each

Forfeited : Amount paid 0.20 0.20

187.94 187.88

TOTAL 187.94 187.88


85


b) Working Capital Structure

ACC‘s working capital requirement is mainly meet out through two sources.

i) Long Term non-convertible debenture

ii) Bank Loan

In 2009, the company borrowed Rs. 300 crores through non-convertible

debentures having a five year maturity at an all inclusive cost of 8.45% per

annum.

As on 31st December, 2009, the company‘s debt equity ratio stood at a

comfortable level of 0.09:1.

c) Fixed Deposits

The company had discontinued its fixed deposit schemes in the financial year

2001-2002, and as on December 31, 2011 the total amount of fixed deposits

matured and remaining unclaimed was Rs. 17.53 lakhs.

The following table gives the idea of total Fixed Assets of the company. FIXED ASSETS OF ACC

FIXED ASSETS As at As at

31.12.2011 31.12.2010

Tangible Assets

1. Freehold Land 148.72 100.54

2. Leasehold Land 31.04 29.04

3. Building 576.82 431.54

4. Machinery, Plant and Kilns 2539.98 2179.37

5. Road , Bridges and Fence 87.23 78.62

6. Water Works 6.74 6.08

7. Railway Sidings 39.04 29.67

8. Rolling Stock 43.75 19.65

9. Furniture, Fixtures and Equipment 77.38 69.21

10. Motor car, trucks, etc. 10.52 10.72

11. Electrical Installations 567.88 491.72

Sub Total 4129.1 3446.16

Intangible Assets

12. Computer Software 10.17 23.54

Mining Rights 19.02 -

Sub Total 29.19 23.54

TOTAL 4158.29 3469.70

Previous Year 3469.70

14. Capital Work-in-Progress 2156.21 1602.86

(including Capital advance Rs. 201.74 Crore)

Previous Year - Rs. 356.33 Crore)


86


d) Sources of Funds

Sources of Funds simply show the various sources or medium through which the

company can raise funds for the working of the company. The following table

shows the various sources of funds of the company.

SOURCES OF FUNDS

2011 2010

Sch. Rs. Crore Rs. Crore Rs. Crores

SOURCES OF FUNDS:

Shareholders Funds:

Share Capital 1 187.94 187.88

Share Application Money, pending allotment 0.08 -

Reserve and Surplus 2 5,828.20 4,739.85

6,016.22 4;927.73

Loan Funds

Secured Loans 3 550.00 450.00

Unsecured Loans 4 16.92 32.03

566.92 482.03

Deferred Tax Liabilities(Net) 349.25 335.79

(Refer Note-14(b)

TOTAL FUNDS 6,932.39 5,745.55

e) Dividend Paid

ACC use to pay adequate amount as dividend to its shareholders. In August 2009,

the company had paid an interim dividend of Rs. 10 per equity share, involving an

outgo (including the dividend distribution tax) of Rs. 219.60 crores. The

Directors of the company have decided to recommend a final dividend of Rs. 13

per equity share of Rs. 10 each. The total dividend for the year 2009 would

accordingly be Rs. 23 per equity share as against Rs. 20 per equity share for the

year ended December 31, 2008.

The total dividend outgo for the current fiscal would amount to Rs. 505.14 crores,

including dividend distribution tax of Rs. 73.38 crores, as against Rs. 439.12

crores, including dividend distribution tax of Rs. 63.79 crores in the previous

year.


87


The following Table provides a complete structure of dividend paid by ACC.

DIVIIDEND ISSUED

2011 2010

Sch. Rs. Crore

Rs. Crore

Rs. Crores

Interim Dividend 187.80 187.65

Proposed Dividend 244.06 187.68

Dividend Distribution Tax 73.38 63.79

Previous year dividend 0.02

f) Share Holders List

ACC has a well structured share capital fund. During the year, the company

allotted 58,473 equity shares of the face value of Rs. 10 each. The following

Table gives a complete list of the shares holders of the company.


88


SHAREHOLDING PATTERN AS ON MARCH 31, 2012

Category of Shareholder No. of Total Percentage

Share- No.of of Share

holders Shares Capital

(A) Shareholding of Promoter and

Promoter Group

1 Indian

(a) Individual/Hindu Undivided Family 0 0 0

(b) Central Government / State Govt.(s) 0 0 0

(c ) Bodies Corporate 1 93888120 50.01

(d) Financial Institutions/Banks 0 0 0

(e) Any other (specify) 0 0 0

Sub-Total(A)(1) 1 93888120 50.01

2 Foreign

(a) Individuals(Non-Resident Individuals/ 0 0 0

Foreign individuals)

(b) Bodies Corporate 1 541000 0.29

(c ) Institutions 0 0 0

(d) Any Other(Specify) 0 0 0

Sub Total(A) (2) 1 541000 0.29

Total Shareholding of Promoter and

Promoter Group(A)=(A)(1)+(A)(2) 2 94429120 50.30

(B) Public Shareholding

1 Institutions

(a) Mutual Funds/UTI 132 4236414 2.26

(b) Financial Institutions/Banks 123 17856708 9.51

(c ) Central Govt./State Govt.(s) 4 287815 0.25

(d) Venture Capital Funds 0 0 0

(e) Insurance Companies 0 0 0

(f) Foreign Institutional Investors 385 3

34269005 18.25

(g) Foreign Ventures Capital Investors 0 0 0

(h) Any other (specify) 0 0 0

Sub Total(B)(1) 644 56649942 30.17

2 Non-Institutions

(a) Bodies Corporate 1329 9730215 5.18

(b) Individuals

i. Individual shareholders holding

nominal share capital upto Rs. 1 lakh 98615 21962894 11.70

ii. Individual shareholders holding

nominal share capital in excess 126 3315233 1.77

of Rs. 1 lakh.


89





(c ) Any Other (specify)

i. Limited Liability partnership 2 565 0.00

ii. Shares held by Pakistani Citizens

vested with the Custodian of

Enemy property 172 385965 0.21

iii. Other Foreign Nationals 4 1130 0.00

iv. Foreign Bodies 0 0 0

v. NRI/OCBs 1976 743368 0.40

vi. Clearing Members/Clearing House 130 407797 0.22

vii. Trusts 36 664785 0.22

Sub-Total (B)(2) 102390 36666294 19.53

Total Public Shareholding(B)(1)+(B)(2) 103034 93316236 49.70

TOTAL(A)+(B) 103036 187745356 100.00

C) Shares held by Custodians and against

which Depository Receipts have been

issued. 0 0 0

GRAND TOTAL(A)+(B)+(C ) 103036 187745356 100.00


90


Foreign Promoters Group Disclosure

Foreign Promoters shareholding in the Company is held by Holderind Investments Ltd.

Maruitius and indirectly through its Indian subsidiary Ambuja Cements India Pvt. Ltd.

Holderind Investments Ltd., Mauritius (Holcim Mauritius) has informed the Company

that, Holcim Limited, Holderfin B.V., Holcim(India) Private Ltd. And Ambuja Cements

India Pvt. Ltd. Are companies belonging to the same group (hereinafter referred as

―Holcim Group‖) as defined under the Monopolies and Restrictive Trade Practices Act,

1969.

Statement showing Shareholding or more than 1% of the Capital as on 31.12.2009




1 Ambuja Cement India Pvt.Ltd.(Promoter) 86191067 86732067 46.20

Holderind Investments Ltd.(Promoter) 541000

2 Life Insurance Corporation of India 31681260 16.88

3 ICICI(Prudential Life Insu.Co.Ltd.) 4984776 2.66

4 J.P.Morgan Asset Management(Europe)

S.A.R.L A/c JP Morgan Funds Emerging

Market Equity Fund 3067219 1.63

TOTAL 126465322 67.36

SOURCES OF FINANCE

Financial Policy

Capital structure

Ratio analysis

Leverages

Depreciation policy]

Dividend Policy

Tax Payments

Budgets

Income statement


91


FINANCIAL HIGHLIGHTS

Rs.

Crore

2011 2010 2009 2008

INCOME STATEMENT

Net Sales 9,341 7,717 8,027 7,283

Operating EBIDTA 1,921 1,1812 2,643 1,899

Profit Before Tax 1,540 1,461 2,294 1,737

Profit After Tax 1,325 1,120 1,607 1,213

BALANCE SHEET

Net worth 7,192 6,469 6,016 4,928

Borrowings 511 254 567 482

Net Fixed Assets 6,643 6,645 6,315 5,073

Current Assets 3,618 2,753 2,294 2,760

Current Liabilities 3,664 3,746 3,152 2,766

Capital Employed 8,221 7,355 6,932 5,746

SIGNIFICANT RATIOS

Operating EBIDTA/ Net Sales 20% 23% 33% 26%

Return on Capital Employed 19% 25% 49% 40%

Return on Net Worth 18% 17% 27% 25%

Current Ratio 0.99 0.73 1 1

Debts Equity Ratio 0.07 0.08 0 0.1

Price Earning Ratio 16.29 18.04 10 7.39

Dividend Yield Ratio 2% 3% 3% 4%

Net Worth per Share(Rs.) 385 345 320 263

Net Sales per Share(Rs.) 28.00 30.50 428 388

Basic Earnings per Share(Rs.) 70.59 59.66 85.6 64.63


92


HUMAN RESOURCE DEPARTMENT

The true index to a ACC‘s greatness is not only its turnover, not only its

quantum of profits, but its human resource. The ultimate resource - backed by a loyal

and dedicated workforce- helped ACC to prove itself as an expert in the management of

change. Its success will be judged not merely by the market value of its shares but by the

pride of place the company occupies in the hearts and minds o the people (both internal

and external) it seeks to serve.

The company recognized that a motivated, responsive and accountable human resource

team is critical in enabling it to fulfill its long term agenda for growth and

competitiveness. A clearly defined HR strategy endeavors to ensure that the right people

are in the right place doing the right jobs in the right way-through a well devised

performance management system, through carefully planned training and career

development programmes and through need – based recruitment. An important

ingredient of the plan is to motivate employees by improving the quality of life,

addressing compensation issues, providing regular feedback and open international

communication such as through the newly re-launched intranet ‗portal accelerate.‘

HUMAN RESOURCE DEPARTMENT OBJECTIVE

The basic objective of Human Resource Department are as follows:

To attract, retain and develop efficient and effective manpower.

To empower employees for organizational effectiveness

To identify training and development

To evolve and implement pragmatic employees relation policy.


93


ORGANIZATION CHART

The Human Resource Department is provided with adequate experienced and competent

personnel for carrying out the activities of department. The organization chart of

department is shown below:

HR MANAGER

ASST. HR MANAGER

Sr. Superident

Time-Keeping

Department

Junior Officer

Recruitment &

Training

SENIOR HR

OFFICER

SENIOR HR

OFFICER

Junior Officer

Security

Junior Officer

Safety

Junior Officer

Establishment

Section

Sr. Superident

Civil

Department


94


ABOUT: HUMAN RESOURCE DEPARTMENT

Employees

ACC has a large workforce of about 9000 people comprising experts in various

disciplines assisted by a dedicated workforce of skilled persons. ACC employees,

referred to as the ‗ACC Parivar’ , come from all parts of the country and

belonging to a variety of ethnic, cultural and religious backgrounds. ACC

employees display a strong sense of loyalty to the company and their special

skilled qualities as ‗value-adding‘ human capital are well known in the industry.

The work force of ACC is usually classified into two main categories on the basis

of skills and positions or status acquired by them. They are:

o Wage Board Employees

o Management staff

Wage Board Employees

Wage Board employees are those which are technical in nature. They

usually deals with production activities i.e. they are directly involved in

the production process.

Management Staff

Management Staff usually deals with managing activities. Management

staff are indirectly involved in or assist the production activities. They

occur higher position and are non-technical in nature. They require less

physical and technical skill and more intellectual skill i.e. creativity and

innovative skill.

The following tabular description gives a complete picture of ACC‘s

classification of employees.

A) On the basis of employee’s skill

The Wage Board Employees of ACC are further classified on the

basis of their skills and salary or wages received by them in the

following two categories:

1. Daily Paid - Skilled employees

2. Monthly Paid - Semi-skilled employees


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Employees Classification

Daily paid – Skill employees

Category Skill Level

A Skilled higher

B Skilled upper

C Skilled lower

D Semi-skilled

E Unskilled

Monthly paid Semi-skilled Employees

Category Semi-skilled Grade

Asst. General Manager Wage Board Gr. VII

Staff Officer Wage Board Gr. VI

Junior Staff Officer Wage Board Gr. V

Supervisor Wage Board Gr. IV

Clerk I Wage Board Gr. III

Clark II Wage Board Gr. II

Tally checker Wage Board Gr. I

Recruitment & Selection

ACC has clearly stated guidelines concerning recruitment, termination, career

advancement, performance appraisal, professional and employee ethics and code

of conduct. The Company‘s personnel policies and processes enshrine equal

opportunities to all and non-discrimination with regard to gender, caste, creed,

ideology or other opinion, whether social, political or religious. Also ensured is a

due process for employee consultation and participation in organizational

development and policy formulation.

i) Recruitment

Recruitment in ACC is a very fair and transparent process with adequate

opportunities to look for suitable candidates internally as well as from outside.

Applicants are generally invited on the basis of specific advertisements in

newspapers and websites. A Committee of officers called the Central Recruitment

Committee handles the entire recruitment process comprising screening of

applications, preliminary short-listing, interviews and final selection. Every


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attempt is made to make the selection process as objective as possible by

incorporating tests of competence. In some cases, outside consultants are retained.

All decisions of the recruitment committee are recorded in respect of each

candidate. Candidates are informed of their short-listing and selection

immediately after the interview or at the earliest thereafter.

ii) Selection

The entire selection process is carried out by the Central Recruitment Committee.

The process includes:-

Screening of applications → Preliminary short-listing → Tests →

Interviews →Medical Examination → Final Selection → Placement

& induction.

RECRUITMENT

↓ CENTRAL RECRUITMENT

COMMITTEE (CRC)

↓ SELECTION PROCESS


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Performance Appraisal

The Company‘s performance management system is in itself a benchmark that

provides ample opportunities and motivational incentives to employees so as to

reward and retain good talent within the Company. These incentives include:

a) Performance Linked Incentives

As per this an additional incentives in monetary or in fringe benefit form will

be provided to those employees who perform in an outstanding manner.

b) Good Work Awards

Awards were given to employees as a lot of appreciation for their innovative

and creative ideas etc.

c) Special Increments

Besides regular pay and other incentives certain other increments or additional

amount were given by the company to employees for accomplishment of

special task and also for motivating them.

d) Promotion & Transfer

After every three years the employee‘s seniority list is prepared and a

committee is constituted to review the performance of the employees and

according to the performance, qualification and experience the employee is

promoted to the next cadre. After the promotion some employees are

transferred to another department to place them suitably according to their

promoted post and performance.

e) Best House-Keeping Works

As per this programme of Corporate Office of ACC, each plant of ACC will

be rewarded with points ranging from 1 to 5 (maximum point). Under this,

points are awarded on the basis of the cleanness and eco-friendliness of each

plant. The plant which is most clean that will be rewarded with 5 points or on

the basis of cleanness any point between 1 to 5. For each point each worker

of the plant will be awarded with Rs. 90 per point.


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Other Performance Appraisal Methods are:

o Letter of Appreciation

o Nomination to external training programmes in India and Abroad.

o Public felicitation and appreciation.

o Best employee/employees of the month awards

o Training the trainer facilitation.

Welfare facilities

Employees welfare receives prime attention at ACC. They have several schemes

for general welfare of the employees and their families. These cover:-

Housing facilities.

At ACC‘s cement plants and factories, employees are provided furnished and

unfurnished accommodation based on their entitlements. At many locations, the

employees are given free electricity, free water supply and free bus facility for

nearby places and schools. These houses are well-maintained and periodically

upgraded.

Hospital facilities.

Liberal medical benefits are made available to employees and their family

members by way of reimbursements towards normal medical treatment,

domiciliary treatments and special sanctions for serious illness. Each of ACC‘s

townships has well-equipped health care centres with qualified medical staff and

facilities, ambulance, referrals and tie-ups with reputed hospitals for specialised

treatment. In addition, there are regular health checkups, camps and programmes.

School facilities:

ACC townships have excellent schools that are often the best in the district.

Education at these schools is subsidized for employees‘ wards. ACC offer

attractive scholarship allowances for children studying at places away from their

parents, merit scholarships for outstanding children and financial assistance for

employees‘ children to pursue higher professional education.


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Loan & Financial assistance:

Employees are eligible to apply for loans and financial assistance for various

purposes such as purchase of assets, residential premises as well as a scheme that

provides for supply of cement at subsidized rates to those building their own

houses.

Other facilities:

The following are some other facilities provided by ACC to their employees:

o Uniform and footwear facilities

o Canteen facility

o School bus facility

o Rest Hall and shelter facility

o Swimming pool facility

o Co-operative society

o Sports club

Training & Development

ACC‘s new Performance Management System incorporates a process called

Competency Assessment and Training and Developmental Needs wherein

appraisers are specifically called upon to identify and assess training needs of

employees at specific intervals that do not coincide with Performance Appraisals.

This is so that training needs can be assessed objectively.

ACC consists of a vast cell of Training and Development. It is controlled by

Human Resource department of each respective plant. It is basically divided into

two cells:

a) Training Cell (b) Development Cell

Training Cell:

Training is imparted to take care of an individual‘s career development as well as

functional and skill enhancement. Competency and Development training inputs

include Skill and general performance enhancement, communication skills and

Career development. Functional training needs are identified and conducted by

functional departments while Corporate HR organizes competency and

developmental inputs.


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The Sumant Moolgaokar Institute (SMEI) is an eloquent testimony to the ACC

commitments to training. It provides exhaustive training in various trades like

Electrician, Instrument Mechanics and Foreman etc. in various discipline.

A third training institute The Technical & Training (TMT) Division located at

RCD-conducts training programmes/workshops, seminars for Officers/Managers

of the cement and other industries at its training centre in Thane.

Besides this as part of employee development programme, many training

programmes are arranged by the Training Department. Some of them are :

o Executive Development Programme is done for the Management level

employees wherein Management effectiveness, quality improvement, time

management etc. are educated.

o Supervisory Development Programmes are arranged for the supervisory

level of employees wherein Role & Function of a Supervisor, Discipline,

Interpersonal skill, Work planning etc. are educated.

o Workers Development Programme is arranged for the benefit of workers

wherein work and work culture, discipline at work, self awareness,

attitudinal change etc. are educated.

o The Analytical Skill Development Programme help to improve process

and analytical ability in order to uncover and examine problems more

effecatively.

o The fresh ITI/Diploma holders and Engineering Graduates are also given

training in their field of work and Apprenticeship Training.

After the Training training reports are collected from each individual and the

same is studied and necessary improvement in the training programme is done

from time to time.

Development Cell:

ACC basically believes in sustainable development strategy. Its policy is to

‗measure the actual performance‘.

As per this sustainable development programme ACC believe in Top Bottom Line

Approach. In this they measure their success on the basis of three approaches:

o Economic Prosperity

o Contribution to the wellbeing and preservation of the plant and its

people.

o Social & Local wellbeing


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ACC longed several new programmes in order to strengthen its existing Human

Resources. Under this the following programmes has been introduced:

o Strategic Talent Management

A transparent and efficient system for managing talent has been

conceptualized and is under implementation. This new Strategic Talent

Management programme (STM) help to create a blueprint for

development of talent in the organization by introducing effective

measures to identify companywide talent, build adequate strength for

future needs through succession planning for critical positions while

creating a healthy balance between internal and external talent in the

organization.

o Special change Management initiatives for shop floor associates

ACC used to annually launch a number of transformation initiatives that

involve shop floor associates and was directed at developing greater team

working skills amongst them and overall manufacturing excellence.

o Innovate to Excel

This is a special flat form to encourage change and innovation at the work

place. Cross functional teams across various plans, sales units and

functional department are encouraged to work on an innovative

idea/project. The teams then compete at unit and regional levels and

finally the winning teams participate in a competitive presentation of their

project at the corporate level.

o Linguistic Development Programme

Under this programme each and every employee of ACC undergoes

training and development programme in various languages specially in

Hindi and English. Since ACC has a big pool of national and international

markets so in order to maintain and provide best services to customers

effective communication skill is necessary for each and every employee

of ACC.

o System Knowledge

ACC also provide basic and high level knowledge in computers in various

training centers of ACC basically to make its employees competent

enough in the technical world.


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o Workshop

The plants of ACC has a workshop inside the plant where each and every

employee of plant is provided with various development programmes

periodically and on a regular basis. Training is provided in safety related

matters, production techniques, new technologies and also provided with

programme covering refreshing activities to keep employees fresh and

health.

o Quality Circles

The employees of ACC plant formulate small committees i.e. Quality

Circles in order to improve quality of their work life. It consists of 10

members from each and every department of plant. This committee is

named as ‗Parivarthan’. Their mantra is – ‗Change to Excel’.

Grievances Handling Techniques

Grievance Cell is functioning under the Department of HRD wherein the

grievances of the employees are heard and solutions are found. A Grievance

Committee is formed wherein members from both the Management and Trade

Unions are selected in ratio of 50:50. Timely meetings are held by this committee

to discuss various matters relating to the grievances of the employees. The

solutions are recommended by this committee and the same is implemented with

the approval of the Management.

In order to handle and reduce grievances level, the Grievance Cell under HR

Department of ACC has introduced various methods. Some of them are:

o Enabling employee communication

The ‗Accelerate portal‘ was introduced in 2008 in order to encourage and

facilitate the communication among employees and employers and among

employees themselves. This facilitated employees to communicate across

level and locations on vide variety of issue related to work life and

personal life and this helps the management to found solution to such

issues.

o Complaint Box

Complaint Box facilities are provided within the factory premises for

internal customers of ACC. Under this employees can put their complaints

and problems even without mentioning their names. The incharge of this

complain box will be the Grievances Handing Committee.


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o Employees Satisfaction Surveys

In addition to periodic internal Employee Satisfaction Surveys, ACC

participate in Employee Satisfaction and Work Places Surveys conducted

by reputed external agencies and organizations like Hewitt Associates

Grow Talent. And from time to time, ACC has also retained reputed firms

like Mercer and Boston Consulting Group to study our internal work

environment and employee policies and suggest areas of improvement.

ACC share below salient points of the latest survey of employees:

People are treated fairly regardless of religion and gender

ACC is a safe place to work

Management is competent in running business

Employees feel good about what we do for society

Proud to tell others I work here

Management thinks positively

The overall findings show significant job satisfaction at all levels as also

deep respect for the company, its performance management system and its

overall business performance.


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Trade Union

ACC has a strong and well designed trade union which always act in the interest

of employees and also employers. ACC Madukkarai plant also has a well

structured trade union and union office within the factory premises.

The trade union functioning in ACC Madukkarai Cement works is All India Trade

Union Congress (AITUC) which is functioning under the banner of Indian

National Trade Union Congress (INTUC).

The Secretary of Trade Union of Madukkarai plant is Shri N. Nanjappan. Trade

under his leadership is functioning in a efficient and effective manner. The main

focus area of Trade Union is :

a) Safeguarding interest / benefits of employees

b) Co-operating and Co-coordinating the Management for smooth functioning.

Achievements of Trade Union

1. Common uniforms

Earlier Wage Board employees have blue uniform and Management Staff

has creamish color uniform. But as per actions of Trade Union from this

year onwards a common uniform (creamish one) came into existence to

avoid any type of discrimination.

2. Participative management

Trade Union always focus on Participative Management mode i.e. all

development and decision making committees should have 50:50 ratio of

members .It means 50 members of management staff and 50 from employees

side

3. Compensation committee

This committee was formulated by Trade Union in order to provide

appropriate and adequate compensation to those employees who has lost their

life or met with physical incapability while working in the factory premises or

outside also. In this committee both employer and employees make

contributions. Then the fund of this committee is used for making livelihood

or for compensating the aggrieved party or their family members.


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4. Learning gallery

It is a small gallery maintained by trade union. It consists of old records and

references related to production and employees. Only staff of ACC has access

to this gallery.

Employers’ Association

There is an employer‘s association also to safe guard the interest of employers. It

includes ---

Supervisors Association

This association of supervisors is engaged in protecting the interest of

Supervisory Staff.

Officers Association

Officers association is working in parallel of supervisors association for

the benefits of officers.

Time Keeping Department

Time Keeping Department comes under HR Department. It is a section of HR Deptt. It

mainly deals with Time Keeping process and remuneration calculation of etc. of

employees.

Objectives

The main objectives of Time Keeping Deptt. is as follows:

To facilitate preparation of pay roll if wages are paid on time basis.

To maintain discipline in attendance

To calculate overtime

To control labour cost.

To introduce incentive plans

Functions

The basic functions of Time Keeping Deptt. are as follows:


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1. Attendance keeping

Time Keeping deptt. mainly deals with the process of maintaining the attendance of

each and every employees of ACC.

In order to maintain the attendance of the employees of ACC, the following methods

are adopted:

a) Time card system

Time Keeping Deptt. has a separate rack having various bins. Each bin consist of a

time card in the name of each employee of an organization. The employees going out

and coming in the factory premises should make entry in it. Usually time card system

is for wage board employees.

b) Identity Card Recorder System (ICR)

Time Keeping Department has 4 ICR systems inside the plant premises at the

entrance and 2 outside the plant i.e. in General Office. Under this ICR machine has 2

sections in and out. Each employee should show his identity card containing his

name and employee code no. in the ICR machine whenever he comes or goes outside

the company premises of the organization. Usually ICR Time Keeping system is for

Management Staff.

c) Register Maintenance

This system is usually for contract labour. Under this whenever each contract

employee goes outside or comes inside the plant they must make entry in contract

labour attendance register and should obtain a gate-pass from time office department.

Hence with the support of such system a proper and systematic attendance taking

system is maintained within the ACC.

2. Remuneration Policy and Calculation

Time keeping deptt. deals with formulation of remuneration policies and calculation

of remuneration of each and every employee of ACC and submit the report to HR

deptt. and from there distribution of remuneration takes place.

a) Remuneration Policy


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The remuneration structure for the Managing Director and other employees

consist of salary, performance incentives, perquisites and allowances, contribution

to provident fund, superannuation fund and gratuity.

The non-executive Directors are paid sitting fees for each meeting of the

Board/Committee of the board attended by them (approx. Rs. 20,000/- per

meeting). In addition to the sitting fees, the non-executive Directors are entitled

to received commission not exceeding 1% of the net profit of the company as

computed in the manner provided by section 198 (1) of the Company‘s Act 1956.

b) Remuneration calculation

Time Keeping Deptt. usually deals with calculation of remunerations paid to

employees of ACC. As per this employees are paid with – basic pay, D.A., HRA,

Conveyance Allowances, Total productive maintenance allowances, night shift

allowance, washing allowance, periodical allowance, educational allowance etc.

as per the services rendered by them.

Basic Pay

The following is the list of basic pay of wage board employees:

Class of workers Rate of wages Annual

increment

Maximum Minimum

A Grade 4040 2220 91

B Grade 3580 2180 70

C Grade 3199 2149 52.50

D Grade 2893 2123 38.50

E Grade 2670 2110 28

Grade VII 5090 2290 140

Grade VI 4785 2265 126

Grade V 4480 2240 112

Grade IV 4175 2215 98

Grade III 3870 2190 84

Grade II 3570 2170 70

Grade I 3270 2150 56

Tally Checker 3045 2135 45.50


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Other pays

The following is the list of other pays besides basic pay of employees (it is

common to all):

Other pays Monthly Pay

D.A. 7259.60

Bonus 20% (Basic pay + DA)

HRA 125 (C-D-E), 135 (A-B)

CA 950

TPM 151

Night Shift Allowance 12.5% (Basic Pay x No.of nights)

Washing Allowance 20

Periodical allowances 185

Educational allowance 500

Quarter Rent 60

Other Monitory facilities

The other monitory facilities besides the above pays are as follows:

a) Provident Fund

PF is usually 12% of the basic pay and DA. Employer‘s contribution

to PF of employees is 3.67% and 8.33% goes to employee family

pension scheme under PF.

b) Employees State Insurance (ESI)

The employee having salary or basic pay between Rs. 1000 to 15000

will enjoy ESI benefit. ESI card provides the card holder and other

persons dependent on him i.e. father, mother, wife, children (upto 18

years age), facility to get treatment under ESI hospitals at free of cost

or in private hospitals at expenses of ESI.

Employee contribute 1.75% of salary in ESI fund and employer

contribute 4.75%. This ESI remittance amount is paid to ESI local

office Manager at a half yearly period i.e. at every six months period

(1st April – 30

th Sept. and 1

st Oct. – 31

st March) .


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The ESI cheque should be remitted in local office within a period of 21

days from due date.

c) Insurance Coverage

The employees of ACC are covered under the following Insurance

Policies:

Employee Deposit Link Insurance(EDLI)

EDLI comes under the banner of LIC. The employer bear this EDLI

amount for employee (contribution is 0.005%) . In case of death of

employee before retirement, the eligible amount given to his nominee

by LIC is Rs. 62,000/-

General Insurance

The employees of ACC are covered by Janatha Accident Policy also.

Fringe benefits

The non-monetary benefits enjoyed by employees of ACC are as follows:

Medical benefits

LTC Allowances

Canteen Facility (Tea at 35 paisa, food at Rs. 1 )

c) Mode of Payment

The employees of ACC are paid in the following ways:

Monthly paid employees – 1 day before the last day of every month

Daily paid people – on 6th

day of every week

Contract labours – paid per day (Rs. 160 per day to male & Rs. 164 per day to

female)

The salary of employees are paid to them through bank. ACC has account in two

banks i.e. Canara Bank, Madukkarai & State Bank of India, Kunaimuthu.

It depends on employees choice that in which bank out of this two their individual

account should be opened.


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3. Register Maintenance

Time Keeping Department deals with maintenance of the following registers for

recordical evidences of future references and proof:

Goods inward register

Goods outward register

Attendance register

Returnable Register

4. Shift Management

Time Keeping department keep records of shift of employees of ACC.

ACC plant works round the clock in various shifts. The following are shifts of

employees in ACC.

Shift Class Shift Time

A Shift 12 A.M. to 8.00 A.M.

B Shift 8 A.M. to 16.00 P.M.

C Shift 16.00 P.M. to 12.00 A.M.

Half Hour meal time for each shift

General Shift(For non-technical employees) 7.30 A.M. to 16.30 P.M.

Meal Time 12 P.M. to 13 P.M.

Time Keeping department provides siren at end and beginning of each shift.

Safety Department

ACC‘s brand name is synonymous with cement and concrete. Hence ACC and its plants

come under hazardous plant categories. So as per the statutory requirements, there

should be one well structured and well equipped Safety Department with a Safety

Committee.

Some of the statutory requirements of Safety Department of a hazardous plant are as

follows:


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1. Safety Committee

The Safety Committee should consist of a Safety Officer who should have

diploma in safety acquired from either Central level or Regional level institute.

The safety committee should consist of members both from Management and

Employees side.

2. Safety Policy

The hazardous plant should also have Safety policies describing the measures of

safety for persons both inside and outside the plant. It should consist of safety

guidelines prescribed as per Govt. Every year the Safety Policy guideline should

be reviewed in order to cop up the changing environment.

3. Safety Audits

Safety Audit should be conducted once in a month to find out any unsafe points

and to avoid unnecessary accidents.

Functions

The Basic function of Safety Department of ACC are as follows:

1. Safety Committee Meeting

Every month Safety Committee of ACC comes together for conducting a meeting

and discussing safety related matters and points to avoid accidents inside the

plant.

2. Safety Gate Meetings

At the very first day of every month each and every employee of plant conduct a

meeting at the factory gate to discuss regarding safety measures and to train

employees to work safety inside the plant.

3. Safety Audits

Safety Audits i.e. verification is conducted at departmental level under this

verification is done to assure that Safety Measures are followed by each and every

department as per safety guidelines prescribed by statue.

4. Training & Awareness Programme


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It use to carry out training and awareness programme for employees in ACC in

which they use to train them regarding safety measures to be followed while

working inside the plant.

5. Provide Personnel Protective Equipment (PPE)

Safety Department keep records of PPEs and also deals with issue of PPEs. It

issue the following PPEs: - Helmet, Safety shoe, Goguls, Ear plug , Hand glows

etc.

6. Fire Protection System

Safety Department also deals with the fire protection systems. It also have a fire

protection team which is lead by security officers. This team deals with fire

related dangers inside and outside the plant premises.

7. Report Preparation

It is engaged in the process of report preparation. It has to report to Safety

Inspectors which comes as a representative of Govt. to inspect the safety

activities of the plant. If he feels any type of dissatisfaction then he can cancel

even the license of the plant.

8. Suraksha Bandhan

ACC takes care of their contract employees under the banner of ―Suraksha

Bandhan‖. Under this the contractor intents management plan implemented in

phased manner.

Security Department

Security Department also comes under HR Department. It is an important department of

HR Department. It mainly deals with Security related issued etc. both inside and outside

the plant. Security Deptt assists the HR Deptt is security related matters and also helps to

keep recordical evidences regarding each incoming and outgoing resources.

Functions

The following are the basis functions of Security Department

Controlling men and material

Incharge of Fire Team

Traffic Control

Checking on Returnable Materials which is going out

Maintenance of Guest Houses, Accommodation for guests and officials at the

Guest House.


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Collection and collation of intelligence information regarding union activities and

happenings in surrounding villages.

Supervision of ingress and egress of men and material at the gate.

Maintenance of arms and ammunitions

Liasionning with Police Department.

Providing assistance to HR Department for allotment – taking over for

allotment/taking over of houses in the colony.

Providing security to men and material of the company from theft and sabotage

Management of school buses

Receipt and issue of diesel in quarry

Travel arrangement for guests and official trips

Maintenance of fire fighting equipments

Organizing January 26th

and August 15th

parade

Training of security staff and other employees in fire fighting‘s.

ALTERNATIVE FUEL AND RAW MATERIAL DEPARTMENT (AFR)

ACC has embarked wholeheartedly on a trend setting path of promoting the use of

Alternate Fuel and Raw Materials. Hence ACC had introduced a separate department

known as AFR (Alternative Fuel and Raw Material) Department. The AFR team offers

total solutions for waste management including testing based on co-processing. This is an

environmentally sound technology to avert environment damage cost, threats to human

health and other risks and liabilities. It is a new concept for Indian industry.

AFR department mainly deals with the process of Co- processing approach

Co-processing refers to the use/disposal of waste materials in industrial processes as

alternative fuels and raw materials to recover energy and material value from them, if

any. Co-processing of hazardous wastes in existing cement kilns provides a simple,

sustainable, local and immediate solution to the problem of disposing hazardous wastes

without affecting the environment, and without huge investments. Co-processing is

indeed a more environmentally sustainable method of waste disposal as compared to the

conventional methods of land filling and incineration because it involves reduced

emissions and there is no resultant residue from it.

AFR POLICY

ACC‘s Vision for AFR Business is to be the most respectable service provider to the

waste generators in India. The company has an AFR Policy that governs its behavior and

operations in co-processing various kinds of wastes in cement kilns. In order to comply


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with the principles listed in the policy as also to provide better services to our customers,

ACC is setting up essential infrastructure and facilities including ISO 17025 certified

AFR testing laboratories for speedy and accurate evaluation of wastes, continuous

emission monitoring systems on kiln stacks, waste specific feeding arrangements and pre-

processing platforms at different locations.

ORGANIZATION CHART

The AFR Department consists of efficient and highly skilled personnel‘s enjoying

suitable and competent positions. The following is the organization chart of AFR

department of ACC Ltd.

REGIONAL

COODINATORS

SUPPLY

CHAIN

MANAGER --II

AFR DIRECTOR

PLANT CO-

ORDINATOR

SUPPLY

CHAIN

MANGER- I REGIONAL

PLANT

COODINATORS

REGIONAL

BUSINESS

HEADS

SUPPORT

FUNCTION


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ADVANTAGES OF AFR DEPARTMENT

The following are some of the advantages provided by the AFR department:

Reduce the coal consumption

Reduce the cost up gradation

Increase the brand image of the company

Help in waste disposal process

Act for social well being.


AFR department usually deals with –

Replacement of fuel (coal)

Replacement of raw material

a) Replacement of fuel

ACC has successfully demonstrated re-channeling the use of industrial wastes as fuel

in existing cement kilns. So ACC now extends co-processing services in the country

as a safe and environment friendly method for management of wastes to industry and

society. We are capable of accepting not only those wastes which have some raw

material or fuel value, but also other wastes which are difficult to handle and dispose.

All types of wastes can be effectively disposed off in this way without any harmful

emissions, due to the high temperature and long residence time of the material in

cement kilns. An efficient cement kiln can thus provide an environmentally sound

and cost-effective recovery or disposal option for most wastes including hazardous

and non-hazardous ones but excluding banned wastes. These banned wastes comprise

anatomical hospital wastes, asbestos containing wastes, bio-hazardous wastes,

electronic scrap, entire batteries, explosives, high concentration cyanide waste,

mineral acids, radioactive wastes and unsorted municipal garbage.

It also deals with—

Reduction of Green House Gases (GHG) emissions

The usage of AFR in cement process does not lead to any additional emissions. This

fact is reinforced through the trial runs that have been conducted by third party

monitoring agency which demonstrates that all emissions in the kiln stacks including

the heavy metals, POPs, PCDDs and PCDFs are well within the norms prescribed by

CPCB for the incinerators. In fact, some of the emissions (such as NOx)\ were

reduced by disposing/using the wastes in the cement process. The overall CO2

emission also decreases. Thus, ACC is going a long way in promoting co-processing


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as an environmentally sustainable solution for the management of hazardous and non

hazardous wastes from the industries. Further, the cement plants already exist, so

there is no need to invest in infrastructure development for waste disposal, and this

reduces the usage of public funds. Considering the cost towards environmental

remediation and the expenses related to health and well being of the society, co-

processing offers the most economical solution for the management of wastes.

Procedure for acquisitions of waste materials

The waste materials are usually acquired from respective customers by creating

contract with them with the help of procurement department. The following is the

graphical representation of acquisitions of waste materials—

Identify the

Customer

Customer

Interaction

Sample

Evaluation

Finalize usage

plan

Clearance from

authorities by AFR

India & customer

Suggest

alternative

solution

Co-processing

agreement with

customer

Undertake Trial

Burn

Submit to

Authorities

Initiate

Regular

Usage


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b) Replacement of Raw Material

ACC has successfully demonstrated rechanneling the use of industrial wastes such as

fly ash and slag to make premium quality blended cements. Today it is the largest

producer of blended cements in the country, offering two varieties of blended

cements namely; Fly-ash based Portland Pozzolana Cement and Portland Slag

Cement. Fly Ash is generated as a waste by Thermal Power Plants, while Slag is a

waste by-product from steel plants.

Fly-ash based Portland Pozzolana Cement (PPC)

It is made by intergrinding high strength clinker with processed fly ash. This

imparts a greater degree of fineness to the cement and improved workability

properties while mixing. Concrete made of this cement is more corrosion

resistant and impermeable which together provide better long term strength

and durability of structures.

Portland Slag Cement (PSC)

It is manufactured by blending and intergrinding OPC clinker and granulated

slag in suitable proportions as per approved norms of consistent quality.

Portland Slag cement imparts strength and durability to all structures. PSC

has many superior performance characteristics which give it certain extra

advantages when compared to Ordinary Portland Cement The manufacture of

blended cements using pollutant industrial wastes is among the most publicly

recognized eco-friendly practices demonstrated by the cement industry. ACC

has been a trend-setter in the industry in this respect with as much as 85 % of

its total production comprising these environment friendly ‗green‘ cements.

Following our lead, the share of blended cements in total production has been

growing steadily in the last few years. Blended cements involve less

combustion and hence less emissions. The use of these materials to make

value added cements is acknowledged as serving many benefits conservation

of limestone (a precious mineral), energy conservation, recycling of pollutant

industrial wastes and reduction of greenhouse gases.

Clinker Factor

ACC has been able to reduce the clinker factor to 67.58% by utilizing other

compatible industrial wastes like blast furnace slag and fly ash.


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Mineral Component and Clinker Factor

In 2006, the company was felicitated by three ministries of the Government

of India (Power, Environment & Forests and Science & Technology) for

registering the country’s highest utilization of fly-ash.

c) Testing facilities

ACC has ISO 17025 certified AFR testing laboratories at its Wadi, Madukkarai and

Kymore plants and at the Technical Support Services in Thane- near Mumbai, for

prompt and accurate determination of waste characteristics. They will be manned by

trained chemists. Over 600 samples from different industries have been tested so far.

2011 2010

Clinker factor % 67.58 69.43

Blast Furnace Slag

Consumption(Million

tones/annum)

1.86 1.75

Coal Fly Ash

Consumption(Million

tones/annum)

3.54 2.99

AFR LABORATORY OF ACC

MADUKKARAI PLANT


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AFR Laboratory of Madukkarai plant has been inaugurated on 17th

March 2008.AFR

Laboratory mainly deals with the ―Finger Print Analysis‖ process.

AFR Laboratory of Madukkarai plant consists of 16 ultra technological equipments.

They are as follows:

Karlfischer

Ion specific electrode

Supra pure water analyser

Flesh point analyzer

Flame photometer analyzer

Microwave digesting

Gas chromatography (GC)

Bomb calorimeter

Proximate analyzer

Ultimate analyzer

Autolitrator

Moisture balance

Radioactive Dozimeter

Muflfurnace

Hot air oven

Inductive coupled plasma spectro-photometer(ICP)

AFR DEPARTMENT OF MADUKKARAI PLANT

AFR department came into existence in Madukkarai plant in 2005 only. At present it

has 10-15 waste streams. it plays a vital role in Madukkarai plant because at present this

plant of ACC is facing a major problem of Clinker cost up gradation due to fuel (coal)

usage. Hence in order to reduce the cost up gradation the ,management has decided to

make Madukkarai plant a grinding plant instead of integrated plant but Trade Union

rejected this idea as many peephole will become unemployed as a result of this decision.

So in order to make a last attempt to save clinker production sector in Madukkarai plant

AFR Department came into existence.

Thus, ACC (with coordination of its AFR department) is going a long way in

promoting co-processing as an environmentally sustainable solution for the management

of hazardous and non hazardous wastes from the industries.


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PROCUREMENT DEPARTMENT

ACC‘s countrywide spread of cement plants consumes a wide spectrum of inputs

– about 130,000 different items ranging from coal, gypsum, slag, packaging bags,

refractory products, steel, grinding media, lubricants, electrodes, cables, bearings, and

conveyor belts, spares of various mechanical, electrical and mining equipment, and

explosives and instrumentation.

Thus a team of professionals at Corporate, Region and Plant Level manages the

procurement function. The function is organized so as to derive maximum value for the

company through economies of scale from central pooling and procurement of some

inputs at the corporate level while meeting individual operational requirements at plant

level.

PROCUREMENT ORGANIZATION

The materials management and purchase processes were reorganized in 2006 as

the company‘s new Procurement function. The function underwent further change after

implementation of an SAP based Enterprise Resource Planning (ERP) system.

The procurement section of ACC comprises of a Central Procurement Team at the plant

level. It simply means that each plant of ACC has a separate centralized procurement

department which is linked to a Central Procurement team at the corporate office.


The structure of procurement department of ACC is as follows:

PURCHASE MANAGER

ASST. PURCHASE MANAGER

CLERK – I

Receiving

Requisitions

CLERK – III

Order Processing

& Delivery made

CLERK – II

Enquiry &

Quotations


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POLICY OF PROCUREMENT DEPARTMENT

―To integrate the requirements of all department of the organization in order to take the

advantages of economy of scale wherever possible and to also avoid duplications of

purchase resulting in wastes and obsolescence.‖

DEPARTMENTAL FUNCTIONS

Central Procurement team of ACC mainly deals with procurement of major inputs for the

operation of cement plants.

The basic functions of procurement department are as follows:

Receiving purchase requisition

Inviting quotations and tender

Selecting the supplier

Placing the purchase order

Receiving of materials

Inspection of materials

Checking the invoice and making payment

All these functions are carried out by dividing the Central Procurement Department into

the following sub-sections:

Raw materials—

This section mainly deals with procurement of raw materials as per requisition of

each section of production department.


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Energy, Fuels and Gases—

This section deals with procurement of diesel, oil ,gases etc. required for smooth

functioning of machinery and other mechanical section of the company.

Maintenance spares—

This section deals with procurement of spare parts etc. required by maintenance

section for repairing purposes.

Wearing parts, Consumable materials—

This section deals with procurement of consumable materials etc.

Administrative & office supplies—

This section deals with supplies of stationary items etc. for administrative and

official purposes.

Services—

This section mainly deals with providing services and assistance in functioning of

other sections of the organization.

Packing—

This section deals with the functioning of meeting the requisition of procurement

department.

VENDOR MANAGEMENT

The vendor base is more than 19000 suppliers across the country, comprising reputed

manufacturers, usually the leading names of their particular industry segment who are

technically and financially sound and have the intrinsic capacity to supply material of

desired quality on time. Preference is given to applicants with ISO (Quality &

Environmental) certification. About half of the registered vendors who represent about 10

per cent of total purchase volume have been individually assessed based on quality

standards.

The new vendor registration system incorporates details of environment performance,

social responsibility initiatives and employment practices implemented by the vendor

applicants, but these parameters have not been formally inducted for evaluation and

selection. There are plans to widen the scope of the vendor registration and evaluation

system to incorporate specific prequalification criteria relating to environment

performance.

Care is taken to ascertain that vendors and contractors, who operate within the company‘s

premises, observe and conform to fair labour practices. The engagement of children and

adolescent labour is not permitted.


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ACC have detailed guidelines for vendor appraisal, registration, approval, rating and de-

listing. Periodical evaluation and assessment is recommended on a random basis.

GENERAL STORES DEPARTMENT

ACC has a well structured and effective stores department. The stores department in

ACC is termed as General Stores that means in ACC a technique of ‗Centralized Storage‘

is practiced.

In all plants of ACC centralized stores are there and this is basically because all of its

plants are constructed in such a manner that all production takes place at one

place/location only, including integrated plants also.

The basic objective of ‗General Stores Department‘ is to receive the materials and storing

the same in proper condition and issue of materials to the users.

The operation and maintenance activities of the department are carried out by trained

personnel who are competent enough to carry out these activities.

QUALITY POLICY OF GENERAL STORES DEPARTMENT

The Quality Policy of General Stores Department is stated below:

―To receive and store materials under conditions such that no damage

or loss takes place during storage‖

ORGANIZATION CHART OF STORES DEPARTMENT

The General Stores Department is provided with adequate experienced and competent

personnel for carrying out the activities of department. The Organization Chart of

Department is shown below:

HEAD OF THE DEPARTMENT

ASST. STORE KEEPER

CLERK

INDENTING

TALLY

CHEKER/CLERK--

WISE

Sr.CLERK/CLERK

RECEIPTS


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The main function of General Stores Department is to receive stores and spare items,

verification and storage of the same under conditions such that no damage or low takes

place.

The functions of Stores Department is as follows—

INSPECTION

INSURANCE-- CLAIM

STORAGE

ISSUE

RECORD--KEEPING

CONTROL

VERIFICATION

CO-ORDINATION


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a) Receipt of Materials

All the items coming inside the factory are entered at the main gate by the

security department and also in the inward register of time office. Both the

sections put their seal on the delivery document as a conformance of entry of

material in their record. The receipt clerk verifies the delivery documents against

entries at the main gate and Time Office and also the order copy against which the

material is received. He checks the outward condition of the packages and their

quantity/weight and put suitable remarks on the delivery document, while

acknowledging the receipt (GAR) is prepared in SAP system for every receipt and

kept the same in the pigeon-hole for inspection by the indenter.

b) Inspection

The material received is inspected by the indenting department against the

purchase order specification i.e. the inspection details include

acceptance/rejection and reason for rejection which are incorporated in the GAR

by the inspecting authority. In case of acceptance the tags are provided to the

materials and then they are placed at the designated areas and the GAR is

forwarded to Accounts Department for payment clearance.

In case of rejection the material is shifted to a separately marked area called

‗Rejected Cell‘. The copy of GAR of rejected material is forwarded to Purchase

Deptt. for necessary action. Stores Deptt. initiate actions with the supplier for

replacement/rework keeper.

c) Insurance Claim / MODVAT

Necessary insurance claim is made with transporter/insurance company towards

the shortages/damages/loss of material received against the delivery documents.

The items which attract excise duty, the central excise document received along

with the delivery document, are forwarded to the Accounts Department to avail

Modvat credit benefit.

d) Storage

General Stores Department provided with adequate facilities for proper and safe

storing of items. The storage facilities include:

Separate rooms/almirahs/bins for storing diff. types of items.

Separate oil godown for storing oils.


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Separate place for storing electric motor and panels.

Open Yard for storing heavy casting and steel materials.

The bins are provided with identification nos. to facilitate easy retrieval of

materials.

For protection of materials in stores following safety measures are taken.

Smoking is prohibited in the stores premises.

Naked light fittings are prohibited inside the oil godown.

Acetylene gas cylinders are always kept in upright position.

Adequate fire extinguishers are provided inside the stores premises.

Acetylene gas, oil drums, rubber items are kept a distant places from each

other.

General stores personnel are also given training on first aid and fire

fighting.

e) Issue

All the materials received, stocked and issued by stores deptt. with correct

material specification and correct quantity in terms of no. and weight against

proper requisition. All critical items are marked only for specific equipment and

issues of these items are done only for specific equipment.

f) Record Keeping

Stores department also deals with the process of generating and maintaining

records for proper maintenance and control over inventory and for the purpose of

future verification.

General stores department of ACC and its plants use to maintain records of

inventory in a systematic and planned manner with the help of SAP system.


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Following records are maintained by stores department.

Sl.

No.

Description of record Identification No. Minimum

preservation

period

1. Record for stock of HSD oil MKCW/GS/QR/01 1 year

2. Record for retail issue of

HSD oil

MKCW/GS/QR/02 1 year

3. For Gas cylinder MKCW/GS/QR/03 1 year

4. Record for item kept under

safe custody


5. Item sent for repairs,

reconditioning etc.


6. Record for outgoing item MKCW/GS/QR/06 1 year

7. Record for items

rejected/excess supply

returned to supplier


8. Record for Modvat on

receipt items.


9. Record for scrap sale MKCW/GS/QR/09 1 year

10. Record of training/Internal

Audit Reports


g) Control

Stores Department is mainly engaged in receiving and issuing process. The other

function of stores department is controlling of inventory. Controlling means

keeping a vigil on the discrepancies, abnormal consumptions, accumulation of

stocks, etc. and enforcing control measures. It mainly deals with inventory

control or inventory management. The following are some of the techniques used

by General Stores department for inventory control.

Perpetual Inventory System

Perpetual inventory system is the continuous physical stock taking of the

stores items in order to ensure the accuracy of book stock in comparison

with physical stock.


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Perpetual Inventory (PI) is carried out by Perpetual Inventory clerk as per

the guidance given by Internal control system (ICS).

Perpetual duty is carried out by PI Clerk as per the programme covering

A,B,C class items by the clerk working under Manager Finance. Perpetual

Inventory checking showing the variations observed during PI checking

shall be recorded and actions will be initiated for correcting the same.

Visual Display Board System

General Stores have a ‗Visual Display Board‘ which displays all sorts of

details regarding inventory managed there. It provides a visual display of

the details of the inventory stored in the stores, issued and received etc. It

provide a tabular list and graphical view of materials, lubricants etc. stored

there.

A B C analysis

It is one of the best and popular techniques of inventory control. Under

ABC analysis all materials except raw-materials and finished goods) are

classified into three categories – A, B and C according to value.

Category-A includes high value materials (costlier materials)

Category-B includes medium or moderate value of materials

(less costly materials)

Category-C includes lower value materials (least costly materials)

According to this techniques a greater or strict control is exercised over

category A materials, a moderate control is exercised over category B

materials and relatively lesser degree of control over category C materials.

X Y Z analysis system

Under this technique raw materials and finished goods are classified into

three categories – X,Y and Z on the basis of rate of consumption of raw

materials and finished goods. Stores department carry out this analysis

with the help and under supervision of maintenance department(Civil

Cell) and Quality control department.


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Category X includes highly consumable materials. Hence these materials

should be always in stock.

Category Y includes moderately consumable materials. Hence moderate

level of control is required.

Category Z includes less consumable materials. Hence less investment is

required for this. It should be in stock as per requirement only.

Double Bin System

Stores department also have a double bin system for adequate inventory

management. Hence it helps to control inventory adequately and to avoid

overstocking and under locking situation.

h) Verification

Stores department also deals with verification process. Under this the in charge of

stores department along with storekeeper conducts physical verification of

inventories in stores. It focuses on verification of bin card balances with physical

quantities in bin. This help to deduct the shortages and also help to analyze the

variation in physical stock and recorded stock.

Stores department hence use to carry out Perpetual Inventory System which helps

to conduct continuous verification of inventories in stores. Also stores

department undergoes a detailed verification process on a monthly basis.

i) Co-ordination and co-operation

Stores department functions in co-operation and co-ordination with procurement

department, Quality Control Department and Civil Cell of Maintenance

Department.

Quality control department and Maintenance Department helps to carry out store

keeping of raw materials and finished goods to stores department. Hence with

the co-ordination and help of these departments, General stores of ACC functions

in an efficient and effective manner.


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ENVIRONMENT DEPARTMENT

ACC has been a trendsetter in the industry in respect of its environment protection

practices. There is evidence to show that quarry rehabilitation, tree plantation,

afforestation, water management, pollution control and utilization of wastes were

practiced many decades ago.

The company installed pollution control equipment in its cement plants more than forty

years ago. Today each of ACC plants has state-of-the art pollution control systems

designed by the in-house pollution control equipment design team. These systems are

capable of keeping emissions well below the statutory levels. All plants of ACC conform

to ISO 14001 certification.

The Environment and Energy Conservation Cell was formed in September 2007, in all

plants of ACC including Madukkarai plant, with a clear road map to pursue emission and

energy reduction. Earlier these functions were organized differently. A large group of 70

environment engineers (including 11 environment engineers of Madukkarai plant) are

deployed across the company with separate teams for environment related R&D, design

and installation of equipment at the central level and separate engineers overseeing

maintenance and operation at each plant.

ORGANIZATION CHART OF ENVIRONMENT DEPARTMENT

The organization chart of environment department are as follows--

DIRECTOR PLANT (HEAD)

HEAD PLANT OPERATION

MANAGER ENVIRONMENT

SENIOR

EXECUTIVE (E& I)

JUNIOR

EXECUTIVE

(MECHANICAL)


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ENVIRONMENT POLICY

1. Prevent pollution and minimize fugitive emission from all activities of

Madukkarai Cement Works.

2. Comply with all relevant legal and regulatory requirements.

3. Conserve key resources such as water and energy.

4. Minimize generation of solid waste and take appropriate action for reuse.

5. Continual improvement in Environmental Performance at Madukkarai Cement

Works.


The main function or basic objectives of Environment Department are:

Conservation of mineral and energy resources

Stricter environment management and promoting greener technologies

Upgrading pollution control technologies

Usage of alternative fuels and raw-materials

Water Management

These are some of major functions of Environment Department of ACC cements. They

are discussed in details as follows:

Energy Resources

With rampant energy shortage in India, ACC is engaged in making regular

modifications in process and technology to adapt to best practices in energy

savings on the usage of conventional energy and fuel sources. This is mainly

because, cement manufacture is an energy intensive process consuming both

electrical and thermal energies.

The company introduced Captive Power Plants and Wind Power Plants

programme, basically to generate energy from natural sources i.e. wind etc. This

effort of ACC helped it economically and also helped the society to seek energy

from viable renewable and non-fossil fuel sources.

The company has 225 MW of Captive Power Generating capacity of which 184

MW is thermal while the remaining is mainly liquid fuel based.

ACC has constituted a renewable energy division within its Power Management

Group. The first major initiative was to establish a state of the art wind power

plant/project in Udayathur in Tirunelveli Dist., Tamil Nadu.


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At present ACC have two main wind farms in Tamil Nadu and Rajasthan. The

wind power project in Tamil Nadu provide an environmentally sustainable energy

input to ACC‘s Madukkarai plant.

The company is planning to set up a wind farm in Maharashtra by the end of this

year.

Clean Development Mechanism

The company mainly aims at Clean Development Mechanism. As per this

mechanism the company aims to pursue other sources of non-conventional green

energy such as wind power, waste heat recovery, solar PV energy, solar thermal

energy and mini hydrel power etc.

Waste Heat Recovery

In dry process cement plants nearly 40 percent of total heat input is rejected as

waste heat from exit gases of pre-heaters and grate coolers. In most plants the

waste heat is utilized for drying raw material or pre-heating air required for coal

combustion. But even after covering these applications, there is still some heat

available which can be utilized for electrical power generation. Tapping this

energy offers much potential. Waste Heat Recovery Systems are known to be

working successfully in cement plants in some countries. The power generated in

this way can be enough to operate the kiln section on a sustained basis. ACC is

exploring power generation based on waste heat recovery from cement kiln and

cooler gases.

Atmospheric Emissions Control

Sophisticated pollution control equipment and devices and a well equipped

environmental laboratory provided at each plant of ACC help in the monitoring

and measurement of environmental parameters. All plants of ACC are certified

with EMS (Environmental Management Systems) – ISO 14001:2004.

International audits, surveillance audits and reviews are carried out regularly.

a) Baseline Monitoring

ACC is making substantial investments to monitor and measure the

environmental performance of its plants in terms of emissions termed

as Baseline Monitoring. The result of this monitoring provides

emission values using conventional fuel and act as reference for

evaluating the incremental change in emission from the usage of

alternative fuels.


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Emission parameters that were measured in this exercise are – dust,

SO2, Hel, NH3, H2O, CO, O2, Benzene, Mercury, Heavy Metals(Sb,As

etc.) Dioxins / Furans (PCDD/PCDF) and total organic compounds.

b) Continuous Emission Monitoring Systems

Continuous Emission Monitoring Systems (CEMS) are being installed

at all our plants in a phased manner to facilitate continuous monitoring

of emissions and ensure environment compliance within the standards.

These systems would also allow online monitoring of the associated

emissions from co-processing wastes and indicate whether each type

of industrial waste used is viable and environment friendly material.

c) Monthly CO2 Reporting

Cement industry is among the major emitters of greenhouse gases.

Thus, ACC has started reporting the CO2 emissions from clinker and

cement production activities. Gross CO2 emissions and Net CO2

emissions is calculated for the company as a whole using data

provided by each individual cement plant. The calculation principles

and guidelines are based on the cement CO2 protocol developed by the

cement sustainability initiatives (CSI) of the World Business Council

for sustainable Development (WBCSD). Absolute Gross CO2

emissions are also calculated for the entire company.

Atmospheric Emissions

Average specific concentration (g/tonne of cementations material)

PARAMETER 2011

NOx 929.51

SO2 105.06

NH3 1.50

DUST 95.12

ORGANICS 6.53

MERCURY 0.02

CHROMIUM 0.02

DIOXINS/FURANS 0.003-0.015


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Dust Control

ACC has installed dust emission control equipments. The company introduced its

own facility for retrofitting and upgradation of dust emission control equipments

in 1993 at its Thane complex in collaboration with Hamon Research Cottrell,

USA. This included a full fledged fluid dynamics laboratory, the first in the

Indian cement industry, for carrying out physical gas flow model studies for

different equipment. Over the years, most of the equipment were continuously

upgraded to meet local statutory emission norms. Apart from upgrading and

installing pollution control equipment for ACC, the division also took up

consultancy, supply and erection jobs for clients from various industries in India

and overseas. In fact ACC gained significant recognition for excellent services

rendered.

The following are some of the dust control equipments:

Gas conditioning tower and ESP The conditioning tower is used to reduce the temperature and to increase

the moisture level of the dusty exhaust fas from the kil, before it is passed

through th bag house and ESPs. It is called a conditioning tower because it

conditions the hot gas, thus making it more suitable for the ESP and bag

house dust from it. The Electrostatic Precipitators are used in cement

plants particularly for removal of dust from the exit gases of cement kilns

and from the exhaust air discharged by dryers, combined grinding and

drying plants, finishing mills and raw mills through water injection.

Through ESPs, the dust-laden gas is made to flow through a chamber

usually horizontally, during which it passes through one or more high

voltage electric fields formed by alternate discharge electrodes and palate

type collecting electrodes.

By the action of electric field, the dust particles, which have become

electrically charged by negative gas ions which are formed at the

discharge electrodes and attach themselves to the particles, fly to the

collecting electrodes and are deposited there. The dust is dislodged from

these electrodes by rapping and thus falls into the receiving hopper at the

base of the precipitator casing.

Road sweeper cum industrial vaccum cleaner

ACC was the first to introduce this road sweeper equipment .This

equipment helps to accumulate or suck up the dust of the cement plants of

ACC.


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Bag House

The term Bag House is applied to large filters containing a number of

tubular bags mounted in a usually rectangular casing. The dust laden air is

drawn through them by suction.

The Bag House is used to remove dusty particles from discharge of

different equipment such as cement mill, coal mill and kiln. In a Bag

House system discharge gas containing dusty particles is passed through a

series of bags made of strong fabrics

Greening

ACC has won several prizes and certificates of merit for its programmes

involving ‗greening‘ , afforestation, reclamation and rehabilitation, top soil

management, noise abatement and other visible measures such as tree plantation

and water management. ACC has proudly showcased its success with

reclamation of lands abandoned as mines and quarries. Some of these desolate

tracts have been transformed into green parks, orchards, forests and even a bird

sanctuary with a picturesque lake.

Some of plant of ACC have developed as much as 40% area for green belts as

compared to the statutory requirement of 30 per cent. Each cement plant has its

own success story of tree plantation etc.

Kymore has undertaken greening of the desolate Kaimur Hills-an

ambitious project where 1,50,000 trees are already planted with a survival

rate of more than 95 per cent. Elsewhere volunteers at Kymore have

planted a record 1,00,000 saplings in a single day.

At Gaggle in Himachal Pradesh, 1.1 million plants and saplings were

planted in waste lands.

Chaibasa distributes saplings to local people free of cost on Independence

Day. 1,50,000 trees have been planted over an area of 24.9 hectares.

In Chanda around 5000 trees are planted every year.

Fruit orchards and plantations flourish in Jamul, Katni and Gagal.

The total plantation undertaken across ACC is more than 3.3 million nos. of trees,

with an average survival rate of 85% and spread over an area of 10,000 acres in

mines, factories and residential townships.


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Biodiversity

Among the most satisfying results of the company‘s horticulture, rehabilitation,

greening and afforestation activities is the opportunity it provides to enable

natural life to flourish. This is most evident in the many water bodies created in

abandoned mines or the dense forests and orchards grown on arid and barren

lands where migratory birds, insects and plants thrive.

Wild life conservation plans have been made and submitted for two of ACC‘s

locations in the states of Jharkhand and Orissa. These include suggestions in

respect of the protection of flora and fauna along with the creation of some basic

infrastructure for water-harvesting, support for anti-poaching measures and

livelihood generation assistance for tribals in forest areas.

Water Management

ACC‘s water conservation efforts have been noteworthy, with important

contributions from nearly all our plants. The company maintains a norm of Zero

Water Discharge at all cement units. Water is used in the plants as industrial

cooling and the entire water is recycled through cooling towers, water ponds and

tanks.

Ground water encountered during mining operations at our mines together with

any other rain or surface water, is pumped out of the mines to keep it dry for

operation. ACC cement plants have converted old abandoned mines into huge

reservoirs by collecting rain water from different catchments around mines. The

collected water is then channelled into the abandoned mines forming water

storage areas. The capacity of each such reservoir is approximately 6 to 10 lakh

cubic metres. The reservoir water is further treated in the plant and colony before

it is used. Old worked out mines have thus been converted into water reservoirs at

Kymore, Jamul, Chaibasa and Wadi plants. These reservoirs meet the water

requirement of our plants and help improve ground water tables in surrounding

areas. Rain water harvested at Lakheri mine is utilized for irrigation of

surrounding areas.

As a result of these initiatives, we now have several examples of outstanding

achievements in water harvesting and in the creation of reservoirs in abandoned

mines and quarries. Some of our plants have become self-reliant with respect to

their water requirements for use in the plant, mines and colony.

So these are the structure and main functions of Environment Development of ACC and

ACC Madukkarai Plant.


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CORPORATE SOCIAL RESPONSIBILITY DEPARTMENT (CSR)

Today ACC define Corporate Social Responsibility as the way a

company balances it‘s economic, social and environmental objectives while addressing

stakeholder expectations and enhancing shareholder value.

ACC has undertaken social volunteering practices almost from its inception, – long

before the term corporate social responsibility was coined. The company‘s earliest

initiatives in community development date back to the 1940's in a village on the outskirts

of Mumbai while the first formal Village Welfare Scheme was launched in 1952. The

community living around many of our factories comprises the weakest sections of rural

and tribal India with no access to basic amenities.

ACC demonstrates the practices of being a good corporate citizen and has a clearly stated

policy in respect of its corporate social responsibility ACC was amongst the earliest

companies in the country to have an independent department dedicated to rural

development and village welfare activities, as part of the company‘s village welfare

scheme launched in 1952. The Rural Development Department had a team of

professionals comprising social scientists, agriculturists, civil engineers, horticulturists,

medical officers and social workers. The Company was forced to disband this team two

decades ago on account of acute financial stringency. However the spirit of community

development was kept alive and the company conducted its CSR agenda with the

function entrusted as an additional responsibility to Plant Heads and other executives.

The system worked satisfactorily as it helped integrate community development closely

with the Company‘s main business.

A new CSR Department was introduced in ACC in 2006. The Company‘s Corporate

Communications Department has been expanded to include Corporate Social

Responsibility as an independent function. We have put in place a new organizational

structure for CSR and inducted experience and trained professionals to coordinate this

work at regional and plant levels while retaining the spirit of volunteering and

participation from employees of mainstream functions.


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ORGANIZATION CHART

The CSR department consist of well skilled and competent members enjoying adequate

rights and power. The following is the structure of CSR department—


CSR department performs a number of functions for the development of society and its

members. The main focus area of CSR department is under mentioned—

Community Development

Ladies Club in ACC

Health Care Facility

Awareness Programmes

COMMUNITY DEVELOPMENT PROGRAMME

The rural community around many of ACC plants comprises the weakest sections of rural

India with no access to basic amenities. Tribal people also form part of the neighborhood.

ACC have a long history of undertaking a range of activities meant to raise the quality of

life and living conditions of the under-privileged and backward classes in the vicinity of

CSR--COMMITTE

CSR—HEAD CORPORATE

CELL

PLANT HEADS

DEPUTY HEAD

REGIONAL

HEADS

PLANT CSR

COORDINATOR

REGIONAL CSR

COORDINATOR


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their plants and mines. At most of ACC‘s plants they extend educational and medical

facilities for the local populace.

With a new team of dedicated CSR coordinators being posted at all their major plants,

they are strengthening and streamlining their agenda for community development and

engagement at each of their locations. The company‘s new approach is more holistic and

comprises the following typical steps:

A. Rapid Assessment including stakeholder analysis

B. Needs Assessment - study and report

C. Identifying local partners & NGO’s for engagement

D. Training and coaching in different areas

i. Self-development

ii. Quality of living - hygiene

iii. Health

iv. Capacity building - participation in village institutions, livelihood

generation, enhancing trade skills

E. Linkages – identifying and formalizing backward and forward linkages in

production, employment, fund mobilization and marketing.

F. Making an Action Plan for target communities

G. Implementation of Action Plan.

H. Monitoring and evaluation

The new approach brings a sharp focus on capacity building and livelihood generation,

particularly for the youth and women. The main objective of this programme is to make

the community self-reliant.

LADIES CLUB

Every plant in ACC has traditionally had an informal association of ladies predominantly

for their social and recreational activities. These Clubs have been contributing by way of

organized voluntary work in the areas of school activities, literacy drives, health camps,

blood donation drives, donations, relief measures as well as empowerment programmes

for women. The Ladies Clubs participate in tree plantation campaigns and promote

cultural activities.

The programmes supported by these Ladies Club focus on hygiene, women‘s

empowerment through capacity building and livelihood generation, education and


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training through a Learn & Earn model. Ladies Club members display a strong propensity

for volunteerism in these specific areas and also demonstrate commitment and

competence.

At Jamul, the Jamul Ladies Club has successfully organized women of the Kherda village

to make gloves needed by workers in the packing section of ACC‘s plant. Cloth and

thread is supplied free of charge to each woman and the gloves are purchased from them

at an agreed rate. Each woman is able to make an average of about 10 pairs of gloves a

day. The goal for the Jamul Ladies Club is how to make this a self-financing enterprise.

At Chaibasa, the Ladies Club is operating a Tailoring school for local women since 1992.

The school conducts courses in tailoring, cutting and embroidery of six month duration.

HEALTH CARE FACILLITY

Each of ACC‘s townships has well-equipped health care centres that have mini-hospitals

with qualified medical staff, the latest in basic diagnostic equipment and facilities

including ambulance and referrals with reputed hospitals for specialized treatment.

In several locations, ACC share these facilities with members of the local community. At

other places, the company provides mobile health services to adjoining villages and

conducts regular diagnostic health camps focused on general medicine as well as special

ailments and diseases such as Mother child health care, Cancer detection, Hepatitis,

Tuberculosis, Eye check-up, and Diabetes.

AWARENESS PROGRAMMES (ON HIV/AIDS)

ACC volunteered to lend a hand in the national effort to combat the HIV/AIDS which is

recognized as being one of the country‘s major public health issues.

The company first announced a Workplace policy for HIV/AIDS that guarantees the

fundamental human rights of employees affected by this virus, while enunciating concern

for their treatment. The policy includes awareness programmes for employees, their

families and the community around ACC plants – especially the high-risk groups among

them.

The Company has set up an Anti Retroviral Treatment (ART) Centre for HIV/AIDS

treatment in Wadi in Karnataka, a State where the virus is highly prevalent. The Wadi

ART Centre opened in March 2007. It is equipped with all basic physical infrastructure,

medical equipment, laboratory facilities and trained personnel. It has a complement of

trained medical and Para-medical staff. The centre provides voluntary counseling and

testing services and caters to the general public living in Wadi and surrounding districts.

It conforms to the guidelines stipulated by the National AIDS Control Organization

(NACO) of Government of India. Supply of vital antiretroviral drugs is arranged free of


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cost by NACO. The Centre is the first outside the Government sector to be included in

the list of NACO‘s approved ART Centres in the country.

An independent Trust called ACC Ayushmaan Trust has been created to enable the Wadi

ART center to function effectively. The Trustees include senior executives of the

company and an experienced medical person from the local district.

Awareness Education --―Prevention is better than cure.‖

Accordingly ACC conducted general Health camps and awareness programmes targeted

at high-risk groups in the community as well as their employees, their families and

adolescent children. Condom vending facilities have been installed at the Wadi ART

centre and other places.

ACC is the first company in the private sector to set up such treatment centers and among

only a handful of companies in India to have a formal workplace policy for HIV/AIDS.

So these are some of the functions of CSR department of ACC.

MAINTAINENCE DEPARTMENT

ACC has a strong and well structured maintenance team. All plants of

ACC have a separate maintenance department which provides all types of maintenance

services i.e. it act as a service department for the production department.

From the study conducted in Madukkarai plant of ACC the structure and functioning of

maintenance department became clear to some extent. The maintenance department in

Madukkarai plant mainly deals with preventive and corrective form of maintenance on a

regular basis. It also deals either predictive form of maintenance under certain

circumstances.

ORGANIZATION CHART

The maintenance department is provided with adequate experienced and competent

personnel for carrying out the activities of department. The organization chart of

maintenance department is shown below:


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From the above structure of maintenance department it became clear that along with

Plant Execution cell it has the following cells (section) also:

Civil cell

Mechanical cell

Electrical and instrumental cell

It can be studied one by one in the following manner--

CIVIL CELL

This section of maintenance department mainly deals with the repair and renovation

activities both inside and outside plant.

It mainly deals with the activities of construction, masonry etc, of plant and outside plant

(i.e. in General office and Quarters).

HEAD PLANNER

CIVIL PLANNER MECHANICAL

PLANNER

E&I PLANNER

PLANT

MAINTENANCE

EXECUTION

CHIEF MANAGER

MECHANNICAL


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Civil section of maintenance department is engaged in the following functions or

activities:

It performs the repair and renovation activities both inside and outside the plant

i.e. in quarters also.

It provides maintenance services in the plant like preventing or correcting the

leakage problems, water proofing etc.

It carries out the construction and masonry activities both inside and outside the

plant.

It carries out the general cleaning activities inside and outside the plant.

It helps the quality control department in stock taking of raw materials and

finished products.

It carries out a preventive activity of annual shut down along with coordination of

other sections of maintenance department and also other departments.

MECHANICAL CELL

This section of maintenance department mainly deals with the process of preventive and

corrective maintenance of mechanical section of the plant .The periodic and regular

maintenance procedure of machines and equipments both inside and outside plant is dealt

by this section of maintenance department.

FUNCTION

1. MECHANICAL PLANNER:

Planning for major shut down 9kiln department)

Planning for scheduled replacement (any department)

Spares planning

Critical spares planning

Monthly scheduled planning—mills/crusher/cell rows/filtration

SAP –plant maintenance order

i. Bill of material preparation

ii. Material creation/ codification

Report preparation


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2. CONDITION BASED MONITOR:

Deals with predictive measures like- vibration anticipation etc.

Regular maintenance of kiln department (in a period of 6 months) and

other areas also.

Mill inspection ( internal)

Gear box inspection

Any thicknesses measurement

Report preparation

3. TOTAL LUBRICANT MANAGER

Take care of no stoppage based on lubrication.

Oil/grease supply to concerned departments.

Oil consumption monitoring

Oil/lubricant analysis

Any leakages to be arrested.

Lubricant condition report

Report preparation

ELECTRICAL & INSTRUMENTAL CELL

This section of maintenance department mainly deals with preventive and corrective

maintenance program along with predictive maintenance programme of electrical and

instrumental structure both inside and outside the plant.


The following are the main functions of Electrical & Instrumentation section of

maintenance department:

Formulation of planning related to electrical and instrumentation issues.

Planning for replacement of electrical arrangements both inside and outside the

plant

Deals with the maintenance of instruments utilized in the process of

manufacturing

Planning of preventive measures to avoid sudden breakdowns etc. in production

process due to electrical or instrumental faults.

Inspection of electrical and instrumental arrangements of the organization.

Report preparation.


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PLANT MAINTENANCE EXECUTION CELL

This section of maintenance department mainly deals with the maintenance activities of

plant i.e. inside the plant. It is engaged in the process of maintenance of plant on a regular

basis. The other sections of maintenance department like civil etc. mainly deal with the

maintenance of certain specific areas both inside and outside the plant. But this section

deals with overall maintenance of plan i.e. preventive and corrective measures required

for smooth functioning of plant only.


Plant maintenance execution section of maintenance department mainly deals with the

following functions:

Reduction in Mean Time to Repair (MTTR).

o Ensuring the availability of spares

o Ensuring the availability of manpower required

o Ensuring the availability of skill level required.

Achieving Net Availability Index percentage (NAI %).

Deals with the process of local modification.

o Deals with power modification i.e. power reduction etc. as per

requirements.

o Cost reduction.

o Ensuring Reliability and adequacy of all sources required for smooth

production process.

Assembling the spare parts required.

Preventive and corrective jobs to be carried out.

PM Execution cell is mainly divided into the following sub groups—

1. Preventive PM Execution cell

2. Corrective PM Execution cell

PREVENTIVE CELL

This cell mainly deals with the process of providing maintenance in advance i.e. before

occurring actual break down of machinery or instruments etc.


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It follows the following procedure—

Task list

Plan

Orders

Reporting

Task list

It is a list of task which is to be performed in advance. It is usually prepared on the basis

of ratio of Preventive Maintenance Routine % to Plant Attainment % (PMR%/PA%).

Planning

Planning is a process of determination of future course of action. In this stage the way in

which the preventive task to be performed is prepared.

Orders

In this stage the orders of maintenance were received by various sections of maintenance

team and they have to execute those orders as per the task list and plan.

Reporting

It is the final stage in this each member should prepare a report showing the list of task

performed by each member of each maintenance section. It help to compare the task

actual performed and task planned.

CORRECTIVE CELL

It is a process of providing maintenance services after the actual breakdown or block

occurs.

It follows the following procedures:


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Notification Orders Received Corrective Job Reporting

Notification

Under this stage when the breakdown occurs or when it is predictive then a notification is

issued by the concerned department facing the problem informing the maintenance

department.

Orders received

Under this the concerned section of maintenance cell gets orders mentioning the task to

be performed immediately.

Corrective job

Under this the section receiving the order start the execution of corrective steps required

to solve the problem.

Reporting

Under this final stage the task performed by the concerned section is reported in order to

compare the actual task to be performed the actual task completed.

Hence these are the structural form and mode of functioning of Maintenance department

of ACC and its plants.


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SYSTEM DEPARTMENT

ACC was among the first Indian companies to adopt automation of

information technology. They started computerizing their systems as early as 1968 - a

commitment to progress through the harnessing of relevant available technologies, a

practice that continues even today.

They have traveled a long way from their early days when they were using simple

keypunching machines. Significant improvements have been made in application systems

and infrastructure since then - from Batch processing to on-line systems, from IBM 1401

and Data General system to the latest Linux/UNIX and Windows 2003 based machines.

They have made timely transitions determined by available technologies and business

requirements.

ORGANIZTION CHART

The following chart represents the structure of system department of ACC---

SYSTEM MANAGER

ASST. MANAGER

SUB—

PLANNER

FICO

SYSTEM PALNNER

SUB—PLANNER

SD

SUB—PLANNER

MM

SUB—PLANNER

PM

SUB—PLANNER

PP

SUB—

PLANNER

HR


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IT INFRASTRUCTURE

IT in ACC is well placed to master future expansions of their core business. IT

Infrastructure of ACC is well designed with adequate automation systems.

IT infrastructure of ACC includes the following—

ERP based solutions

Intranet Portal System

Networking System

Security System

ERP based solutions

In February 2007 the company made a quantum jump from in-house developed systems

using Oracle 9i and Developer 6i to an ERP (SAP) based solution. This decision was

based solely on their strategic objectives and the business benefits that they expect to

derive from implementing such a solution. With this move they also aligned people,

business processes and technologies across the country.

Hence at present the system department of ACC and its plant is using ERP based

packages.

Enterprise Resource Planning (ERP) is an integrated computer based system used to

manage internal and external resources including tangible assets, financial resources,

materials and human resources.

SAP-ERP package is used in ACC. The SAP ERP application is an integrated enterprise

resource planning (ERP) software manufactured by SAP AG that targets business

software requirements of midsize and large organizations in all industries and sectors. It

allows for open communication within and between all company functions.


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Functional areas of SAP ERP

SAP FICO (Finance & Cost Controlling)

SAP SD (Sales & Distribution)

SAP MM (Material Management)

SAP HR (Human Resource)

SAP PP (Production Planning)

SAP PM (Plant Maintenance)

FUNCTIONAL AREAS


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Intranet Portal System

The Company has an Intranet Portal called ‗Accelerate‘ which is dedicated to employees.

The portal‘s content is based on Personal information relating to Human Resource

matters, Performance Management, as well as other information of use to employees such

as the latest news on company affairs, developments on sustainable development, house

magazines and newsletters.

Thus the mantra of system department for this Portal is---

―Know Your College‖

This Intranet Portal basically helps the employees to communicate with their employer

as well as with their colleges. It helps the employees to build up a strong communication

between themselves and also helps to know about the company and its policies. It

provides a platform to the employees were they can interact with each other and also can

update their knowledge and can solve their queries related to company and its policies.

Networking System

Being a large organization with a countrywide network of manufacturing, marketing and

R&D centers, ACC have invested in the creation of a comprehensive infrastructure that

allows free flow of information across the organization. This enables almost instant

communication between all levels in the organization. A hybrid WAN network connects

each of their 275 plants locations. A judicious mix of VSAT and VPN links ensure

adequate connectivity between these locations. Each manufacturing location has a well

designed LAN to meet its needs.

Security System

All departments of ACC has their own separate SAP ERP solution. A department can

access only its SAP package system i.e. it can‘t access the SAP system of any other

department for e.g.- HR department can not access the Finance departments SAP package

and vice versa. Each departments SAP system has been designed in such a way that no

other department of the organization can have an access on it.

Only the Production Planning section and the Plant Maintenance section can have a

access on the Material Managements SAP ERP system .


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The following problems have been noted after studying the Systems and IT department.

Still lack of system integration after a level. Though inventory management

module is integrated well with all the other modules like financial system, thus

reducing the redundancy. But still there is need of paper work and manual

intervention when reordering is required. System cannot be configured to reorder

automatically, even for the fast moving raw material.

Legacy Network Support. Backbone network used by ACC is still the same,

which they used in 1993. They haven‘t upgraded the network support from then,

which has started creating problems for them already. As MIS of the company is

improving day-by-day including more and more functionalities, the network has

already become very slow.

Lack of training to managers to effectively use the decision support

functionalities of system. This is another problem that we felt at the company. IT

department is basically making the improvements in the system continuously with

new added functionalities, but there is lack of training to managers to effectively

use these functions in way that can support them to make better decisions. For

example, on an average, a manager uses only 10-15 types of reports out of more

than 200 types of reports available.


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MARKETING DEPARTMENT

ACC‘s brand name is synonymous with cement and enjoys a high level of

equity in the Indian market. ACC‘s brand name is maintained and developed by a well

designed marketing team. A range of ACC‘s cement s and blended cements is marketed

through a network of 19 Sales Units, 54 Area Offices, and 194 warehouses. This is

backed by a countrywide network of over 9000 dealer who, in turn, are assisted by their

sub-dealers.

ACC‘s marketing; sales and distribution processes are industry standards. Although we

take immense pride in having supplied some of India‘s most admired projects, ACC id

essentially a people‘s brand of cement with more than 80 per cent of sales, made

thorough an extensive dealer network that covers every state in India. Its customer base

represents the masses of India- individual homebuilders in small towns, rural and semi-

urban India. ACC cement enjoys an image of assuring consistency and of high quality

backed by in- house research and expertise.

ACC manufactures the various kinds of Portland Cement for general construction and

special applications. In addition to this , ACC offers two value added products namely,

Bulk Cement and Ready Mix Concrete.

POLICY

The following is the policy of marketing department of ACC on the basis of which they

carry out their functions—

―Brand Building through Services‖


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ORGANIZATION CHART

Marketing department of ACC has a reserve of adequate and skilled sales person who

helps to boost out the sales and demand of ACC‘s products.

The following is the organization chart of marketing department of ACC showing the

structure of its sales force-

VICE PRESIDENT

(BUSINESS HEAD)

REGIONAL MANAGER

(Eastern Region)

REGIONAL MANAGER

(Southern Region)

REGIONAL MANAGER

(Northern Region)

REGIONAL

MANAGER

(Western Region)

BRANCH

MANAGER

BRANCH

MANAGER

BRANCH

MANAGER

BRANCH

MANAGER

SALES

MANAGER

SALES

MANAGER

SALES

MANAGER

SALES

MANAGER

SALES

OFFICES

SALES

OFFICES

SALES

OFFICES

SALES

OFFICES

Kolkata

Asansol

Dehradun

Patna

Bhunaeshwar

Ranchi

Raipur

Bhopal

Hubli

Mumbai

Pune

Sekendrabad

Nagpur

New Delhi

Chandigarh

Lucknow

Kanpur

Bangalore

Cochin


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MAJOR MARKETS

The marketing team of ACC mainly concentrates on region wise marketing strategy.

Under this the whole market of the company has been divided into five major regions---

North, South, West, East and Central regions.

The following table shows the major markets of ACC in each region along with the

market share enjoyed in these regions—

MARKETS OF ACC

REGIONS MAJOR MARKETS MAKET SHARE (%)

Western region Maharashtra 16.3

Northern region Punjab 31.4

Central region Uttar Pradesh 32.3

Southern region Karnataka 22.9

Eastern region West Bengal 17.9

From the above table the major markets of ACC in different regions have become clear

and also it become clear that central region (UP) is the strongest market of ACC enjoying

highest share of market in this region compared to other regions.


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MARKET SHARES

Cement industries consists of a number of players. ACC is just one among those players.

These players of cement industry differentiate from each other in different manners and

hence they enjoy different level of status in market.

The following table shows the market share enjoyed by different players in cement

industry—

Cement Companies Market Share (%)

Grasim Industries Ltd. 18.38

Ambuja Cements Ltd. 16.34

ACC Ltd. 14.21

Ultratech Cement Ltd. 12.13

Century textiles& Industries 7.89

India Cements Ltd. 6.23

Birla Corporation Ltd. 5.04

Madras Cements Ltd. 3.34

Shree Cement Ltd. 3.10

Dalmia Cement Ltd. 2.64

Prism Cement Ltd. 2.29

Thus from the above table it become clear that Grasim group enjoys the maximum

number of shares in the market. Hence in terms of sales and marketing strategies Grasim

industries is the leader( top in the market) but when the overall performances in cement

industries is considered then Ambuja group is the market leader of cement industry.

SUPPLY CHAIN MANAGEMENT

ACC is proud of its large supply chain management by an energetic sales

force from an extensive spread of sales offices spanning India, a countrywide network

of highly motivated channel partners comprising more than 9000 dedicated dealers

complemented by a chain of retailers. They supply ACC cements by rail and road from

ACC‘s cement plants supported by efficient authorized road transport contractors who

assure express delivery. Warehouses in intermediary location ensure uninterrupted supply

to remotely located customers.

ACC Concrete has more than 40 Ready Mixed Concrete plants in the major cities of

India which supply fresh concrete to their customers‘ doorsteps through their own fleet of

transit mixers. ACC‘s Bulk Cement terminal at Kalamboli, near Mumbai caters to the

requirements of Mumbai and its environs, through its own dedicated fleet of bulkers and

site storage facilities.

The challenge before the company‘s supply chain is to ensure uninterrupted supply of

high quality cement and concrete backed by efficient logistics and transportation.


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The sales office at Cochin handles the logistics and transportation from Tamil Nadu and

Karnataka. In Kerala ACC has 25 warehouses and 30 sub go downs.

LOGISTICS

ACC have strong and well build logistic team. All the transportation related matters are

handled by this team. The freight charges are paid by the company itself to the dealers.

The logistic department also manages the go down and stores. The main function of the

logistics department is to reduce the logistic cost. The minimum quantity of per order is

1500KT (100 Packets/Nos.) There are two types of freight:

Primary freight – From plant to ware house

Secondary freight – From ware house to dealer

The ware house and transportation is managed by Carrying and Forwarding agents

(CAF). In order to find the least cost in freight charges a software called ―OPTIMISER‖

is used in the logistics department. An optimized list of freight charges to various ware

houses in Kerala is listed in the table.


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ADVERTISEMENT ACTIVITIES

ACC has two levels of advertisement team to manage and perform the advertisement

activities.

-National team

-State level sales unit team

The national team in cooperate office - Mumbai looks over the large scale advertisement

activities, all India level. i.e., in television, radio, news paper and other mass media. The

sales unit in states looks over the advertisement activities such as local outdoor

advertisement, building bus shelters, wall printing, and local television channels and

radio.

PAYMENT AND COLLECTION METHODS

ACC adopts 100% e-payment methods in paying and receiving money in its business

activities. RTG and Fund transfer are the two main methods adopted for financial

transactions. ACC does not use demand draft or cheque for financial transactions. ACC

has direct contact in financial transaction only with its Premium dealers and Authorized

dealers.

MARKETING INTELLIGENCE

ACC uses Retail Marketing Information System (RIMS) for its marketing activities.

There is one marketing intelligence officer for every district to prepare and analyze the

daily sales report.ACC is costly cement. Its well marketed because of its customer quality

and brand image.

SALES PROMOTION

ACC has adopted several sales promotion programs for its dealers. ―ACC Lakshya‖ is

one among them. It‘s a loyalty program for the premium dealers and authorized dealers.

The dealers get points into their accounts as they purchase cement from ACC Limited. At

the end the dealers can redeem points for bikes, laptops, handy cams etc. After a fixed

period of time every dealer obtains some belts and thus they can add more points to their

account.

ACC is also providing several incentive schemes for dealers as they perform financial

transactions towards ACC at the earliest.


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SALES UNIT HIERARCHY

The hierarchy of sales unit is illustrated below:

Thus as shown in the figure every sales unit has a sales head and all the sales/marketing

activities are performed under the sales head.

MARKETING MODEL

ACC sells the cement in the dealership mode and rarely in consignment mode. ACC

never sells products to the end user (Laye Buyer).

The marketing model is illustrated below:

* Three sub dealers [authorized dealers] – Premium Dealer

SALES HEAD

CSS INCHARGE

ACVERTISEMENT AND BRANDING

INCHARGE

FINANCE INCHARGE

LOGISTICS INCHARGE

ADMIN INCHAREGE

ACC LIMITED

WHOLESAL E DEALER

(SUB DEALER)*

END CUSTOMER

RETAIL DEALER

END CUSTOMER


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From the figure the marketing model of AC limited is clear. To market the product ACC

has a concept known as Authorized retailer ship concept. Under this concept ACC

collects small deposit from various retailers and gave a membership in the ACC club. A

retailer who is a member of the ACC club gets attached to a wholesaler. In this concept

the retailer can buy ACC cement only from that wholesaler and the wholesaler will be

connected to three authorized retailers only. The wholesaler will be known as premium

dealer. The dealers who don‘t have any retailer under them and those have direct contact

with ACC and have a membership in ACC club is known as Authorized dealers.

SALES FORCE STRUCTURE

In ACC every district will have one district officer (No. may depends

upon the district), one customer service officer and a team of sales force known as PDF

(Premium dealer sales force). The structure of ACC sales force is as shown below:

MANAGEING DIRETOR

DIRECTOR SALES

REGIONAL SALES HEAD

SALES HEAD

(SALES UNIT)

AREA INCHARGE - SALES

DISTRICT OFFICER

PDF (CONTRACT WORKERS)


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CUSTOMERS

ACC is essentially a people‘s brand of cement and its customer base represent the masses

of India- individual homebuilders in small towns, rural and semi-urban India.

The customers of ACC can be broadly classified into the following sectors—

1. Government sector

2. Industrial sector

3. Infrastructures sector

4. Engineers and other related professionalists

5. Individual home builders

CUSTOMER’S RELATIONS

ACC is India‘s largest manufacturer of cement. ACC Cement has an image of being

dependable, consistent and of high quality backed by in-house research and expertise.

The company is known to promote ethical and fair practices in its supply chain. The

company‘s commercial terms, procedures are professional and transparent. ACC is

popular with its customers and suppliers. Their marketing and sales practices envisage

the promotion and encouragement of all dealers including small traders and retailers,

particularly those in interior places. In addition, the company fosters a tremendous sense

of belonging not only among employees, but also among its customers, dealers and

associates.

The important differentiator which helps ACC to compete and win over other brands is

the phenomena of –customer service.

The level of customer services has been appreciably increased through the expansion of

their sales network and sales force.

The Regional Offices of ACC have Customer Services Cells manned by qualified Civil

Engineers who interact either customers to assess their needs and problems, offer advice

before and after sales including educating users and customers on correct usage of

cement and concrete and good construction practices.

ACC reaches out to its customers, home builders and engineers in the following ways—


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1. Regular Interactions

The company has a regular practice of interacting with customers and end-users

as well as members of their distribution channels such as dealers, sub-dealers

and retailers. Through these interactions they use to build relationships and seek

to educate customers about cement, common complaints and pit-falls in usage

and other aspects of construction.

2. Surveys

Market surveys are organized at regular intervals to ascertain perceptions about

ACC‘s brand image, marketing and distribution procedures, thier sales force,

channel management and relationships with customers, dealers and influencers.

A brand equity study carried out by a well-known market research firm of

global repute indicated that ACC is the most preferred and recommended brand

of cement in India. The brand stood way ahead of all other competitors in this

comparative analysis.

3. Interactive Websites (www.acchelp.in)

In the last few years, a host of new customer services were introduced to assist

customers in selected cities and towns. These include an interactive website for

solving out all construction related quarries of customers. Most were devised for

individual home builders who constitute a large group of our end-users.

An interactive website was launched primarily for the benefit of small retail

consumers and home builders. The site provides online inputs on a host of

useful topics related to home building and is proving to be quite popular. The

website- www.askacc.com is visited by about 10,000 persons from different

parts of the country.

4. ACC Help Centers

A unique new service was the establishment of ACC Help Centres in several

cities to provide basic information and guidance to customers on various home

building-related procedures such as pr-construction worries on stamp duty,

selection of architects and appropriate service providers, estimating budgers.

Issues from purchasing land, budgeting to choice of material and planning of the

construction process are elaborated, step-by-step. Tutorials, conveniently

scheduled in the evenings, guide the customer, through the relevant stages of

house stage of building one‘s ―Dream House‖. These publication are available

in english, hindi and major regional languages. To look for an ACC Help Centre

in nearest to you visit www.com.acchelp.in or write to--

[email protected].

http://www.acchelp.in/

http://www.com.acchelp.in/


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5. ACC Help Literature

The ACC Help Centre distributes specially design booklets on each stage of

building one‘s ― Dream House‖ . These publication are available in english,

hindi and major regional languages. To look for an ACC Help Centre in nearest

to you visit www.com.acchelp.in or write to-- [email protected].

6. ACC Help Vans

Mobile touring vans to visit construction sites to educate users and masons at

site and provide certain specialized services like supervision during slab casting

on demand.

7. Indian Concrete Journal

The ― Indian Concrete Journal‖, the country‘s oldest civil engineering journal,

continuous to be published by ACC. It reaches out to practicing and consulting

engineers, architectures, builders, contractors and government departments. It

aims to be disseminate the latest information and technological progress in civil

and structural engineering, cement and concrete technologies, construction

methods and practice.

8. Suggestion Boxes

Each regional sales office of ACC use to maintain a suggestion box in which

the customers and suppliers of ACC can put their suggestions to improve the

service of the company. The marketing team use to accept the reasonable and

possible suggestion to improve their services.

9. Complaint Handling

Customer service personnel are responsible to attend to customer complaints.

There is a formal system in place for handling customer complaints at all sales

offices. These systems and documentation are regularly inspected by

representatives of the Bureau of Indian Standards. The regional head is

personally responsible to resolve individual complaints to their just and logical

end. Commercial complaints are resolved at the local level while complaints

related to application failures and quality are promptly referred to the head and

quality in charge at the supplying cement plant as well as to the quality

department at the corporate office. On receipt of a complaint, our

http://www.com.acchelp.in/


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representatives visit the complainant‘s site at the earliest and, if found

necessary, samples are drawn for testing at the company‘s own laboratory.

10. Consumer Communication

ACC have established and maintains effective communication with customers

in relation to-

Product information

Enquires, contractors or order handling, including amendments and

Customers feedback, including customers complaints

Usually Marketing Department in coordination with Quality Control

Department provides a high quality services to their customers.

The weekly test certificate indicating characteristics and quality of cement

dispatches is sent to Regional Marketing Office (RMO) and these test

certificates are issued to the needy customers by marketing office (ACC also

issue directly to customers on specified request).

Marketing offices keeps regular touch with customers directly or through

appointed dealers and get feedback from customers and any complaints/ queries

is attended and resolved. Quality control personnel go to the site for assisting

the marketing personnel in investigation.

They collect sample if available and prepare a report and submit to RMO and

Production Manger. These samples are tested at laboratory to evaluate any non-

conformance of product and the genuinty of complaints.

Customer is compensated or material is replaced if test prove any non-

conformance and then non-conformance is recorded for further references and

corrective/preventive actions to avoid reoccurrences of same.

COMPETITORS

ACC‘s brand equity was found to be one of the strongest brands in cement industry. ACC

has a number of competitors in the cement industry. The major competitors of ACC are

as follows—

Domestic competitors

Major competitors--

o Ambuja Cements Ltd.

o Ultratech Cements Ltd.

o Grasim Cements Ltd.

Other competitors—


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o JK Group

o Shree Cements Ltd.

o India Cements Ltd.

o Jaypee Group

o Madras Cemets Ltd.

o Birla Corporation

o Century cements Ltd.

o Binani cements Ltd.

o Dalmia cements Ltd.

o Prism cements Ltd.

International competitors—

o Holcim Group (Switzerland)

o Italcementi Group ( Italy)

o Heidelberg Cements (Germany)

o Lafarge India Pvt. Ltd. (France)

So these are some of the competitors of ACC.

ACC usually beliefs on a fair competition and hence it has formulated ―ten golden rules‖

of competence to make its sales force well equipped. It is as follows—

1. Apply due diligence

2. Seek assistance

3. Report to our legal department

4. Maintain a firm standard towards our competition

5. Draft with care

6. Avoid business contacts with our competitor

7. Do not unduly restrict our dealer

8. Do not force our dealers into dealings

9. Do not unduly obstruct our competitors

10. Don not exploit a dominant position

NEW PRODUCT DEVELOPMENT

Product development has always being an important activity at ACC arising out of a

focus on quality and process improvement. It has been a constant partner, driving

research, innovation and evaluation. In 1964, a centralized research complex now

renamed as ACC Thane Complex, spread over an area of 8000 sq m has modern labs

with the latest equipment and manned by highly qualified scientists and technologists

who carry out product development work in cement and allied fields.


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ACC has introduced a new product in the market known as Masonary Cement. The

composition of Masonary Cement is as follows—Clinker + Low Gypsum + Flotation

Rejects.

They are used for plastering purposes only. It provides shine and finishing. It have a low

strength hence it can‘t be used for building any type of structures. Hence the marketing

team of ACC is presently engaged in introducing Masonary Cements in the market. They

are mainly engaged in the educating process of customers about the usage of low cost

Masonary Cement and its quality.

TECHNOLOGY ABSORBTION

The marketing department of ACC has a well structured Research and Development

(R&D) section. The marketing team of ACC always concentrate on adopting technical

advancements and developing quality oriented and technically upgraded products. This

R&D section of marketing team always helps in developing new technologically

advanced products the main functions of R&D Department is as follows—

1. Specific areas in which R&D is carried out by the company

Improving quality of blended cement through innovative process utilizing

industrial by-products

Conservation of resources through use of low grade limestone for cement

manufacture.

Development of application of blending materials

Process/product design improvements

Development of new product or discovering new methods of analysis

2. Benefits derived as result of above R&D

Effective use of marginal quality raw materials and fuels with improved

clinker quality

Increased absorption of blending materials in blended cements

Effective replacement of the costlier natural Gypsum by cheaper Phospho

gypsum without affecting the quality of cement.

Maintain a lead position in all the market clusters of the country.

3. Future plan of action

Exploratory research work on the above specific areas

Focus on development of products aimed at enhancing use of cement in

various applications


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Use of waste/ by-products in cement manufacture as alternative material

Improve product quality particularly with respect to long term durability

and reduction in its cost of manufacture.

4. Expenditure on R&D

Rs. Lakhs

Capital 37

Recurring (Gross) 325

Total 362

Total R&D expenditure 0.05%

5. Foreign Exchange earnings and outgo

Rs. Lakhs

Foreign exchange earned 5561

Foreign exchange used 4217

Thus the effective sales force of ACC helps to enhance the equity and strengthen its

marketing potentials through these initiatives.

INTERNAL AUDIT DEPARTMENT

The Internal Audit Department functions independently, monitors and evaluates the

efficacy and adequacy of internal control systems in the Company, and their compliance

with operating systems, accounting procedures and policies at all the Company‘s

locations, including its subsidiaries. Every quarter, the Audit Committee of the Board is

presented with the audit findings and connected issues, if any, together with an

implementation tracker which highlights management action taken on past audit issues.

ACC has also implemented a well structured Internal Control System(ICS) and the

internal and external audit periodically tests all the defined controls to ensure full

compliance.

BUSINESS RISK MANAGEMENT (BRM)

The Company has implemented a Business Risk Management process under this internal

control systems that systematically identifies risks and opportunities. The BRM process

supports the Managing Committee in strategic decision making. The process is robust

and is a rolling exercise with a consistence annual review at the Regional level and the

Corporate level, to examine and evaluate risks and opportunities. A detailed mind

mapping of the risks is carried out, so as to identify the root cause of the particular risk, to

enable the management to take effective steps to address/mitigate such risks. The risks


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are plotted on a likelihood matrix and then integrated into the annual business plans as

well as the audit plan of the company as relevant.

The following is an analysis of the company‘s key business risks and mitigation plans:

Fuels Risks

ACC is a major consumer of coal for producing cement at various locations. The release

of coal and allocation of quantities of coal, are entirely dependent upon the demand from

all sectors and is in control of the Government of India. To ensure the timely availability

of coal, ACC has taken steps to acquire coal blocks, to enter into medium term firm

contracts and also to the possibility of using alternate fuels in place of coal.

Projects Risks

ACC is executing large CAPEX projects to set up new cement manufacturing facilities,

where the company is exposed to risks of timely completion and cost competitiveness.

ACC has initiated semi-turnkey projects approach to reduce the time and costs for

completion of large projects and has also restructured the project organization.

Compliance Risks

ACC is exposed to significant risks due to non-compliance with various statutes and

regulations including Competition Act. The company is mitigating these risks through

regular reviews of legal compliance, through internal as well as external compliance

audits and training to relevant employees. The company has set up the process to

mitigate the environmental compliance risks such as investments in pollution abatement

equipment, monitoring of ambient air quality, and construction of environmental labs.

People risks

Retaining the existing talent pool and attracting new manpower are major risks in this

respect. The company has initiated various measures such as rollout of strategic talent

management system and integration of learning activities in order to retain talent.

The above key risks, along with all other risks and their mitigation plans as well as

opportunities assessed by the Management, are built into the rolling business plans of the

company.


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CHAPTER V

SWOT-ANALYSIS


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SWOT-ANALYSIS

SWOT ANALYSIS OF ACC LIMITED

SWOT Analysis is under taken to understand the firm‘s external and internal

environments. Hence SWOT Analysis helps to identify the internal strengths and

weakness of ACC and also the external opportunities and threats for ACC.

The following are the details of SWOT Analysis conducted in the context of ACC

Limited –

Strength

ACC‘s brand name is synonymous with cement and concrete. The trademark ACC on 50

kilogram bags of Ordinary Portland Cements (45 and 53 grad), Blended cements (Fly ash

and slag based) and some special purpose cements offers customers an assurance of

dependable and consistent quality.

The following are the strengths of ACC Limited:

People’s Brand

The brand ACC enjoys a high level of equity in the Indian market. ACC

is a brand with meaning not just to customers but to other stake holders

such as share holders, employees and vendors. The name invokes an

assurance of quality and trust.

Product Assuring Quality and Trust


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ACC promotes the use of blended cements which are environment friendly

and acknowledged for their superior and unmatched durability as

compared to ordinary cements.

Ultimate Resources

The Ultimate Resource – backed by a loyal and dedicated workforce

helped ACC to prove itself as an expert in the management of change.

Manufacturing Excellence

ACC strive to retain their position as India‘s foremost manufacturer of

cement and concretes with a countrywide bouquet of 60 modern cement

factories.

Uninterrupted Supply Chain

ACC has a large supply chain managed by an energetic sales force from

an extensive spread of sales offices spanning India, Countrywide network

of highly channel partners comprising more than 9000 dedicated dealers

complimented by a chain of retailers.

Sustainable Development

ACC believe in the triple bottom line approach. Measuring their progress

against this framework means balancing the pursuit of their economic

prosperity together with maximizing their contribution to the wellbeing

and preservation of the planet and its people.

ACC Help – to build with confidence

ACC is essentially a people‘s brand of cement and its customer base

represents the masses of India – individual home builders in small towns,

rural and semi urban area. ACC Help Services cater to the retail buyer

offering not merely guidance about the correct application of cement but

also knowledge about the entire process of home building.

Hence these are some of the strengths of ACC which helps to bring out the ACC as one

of the best brands in cement industries.

Weakness

ACC is a brand which enjoys a high level equity in the Indian market. Despite being the

largest cement producer in the country, ACC possesses certain weakness. They are as

follows-


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Cost Structure

The performance of ACC is more sensitive to price than volumes because

of its cost structure. The cost structure of ACC is showing an increasing

trend which results in the high cost of production.

Price Sensitivity

ACC has the highest sensitivity to cement prices and its fragmented

capacity results in not being able to influence the price in any significant

manner. Even in Karnataka, despite having the highest market share ACC

cement is priced lower than ultra tech cement.

Capacity Addition Hurts

A nation wide presence has resulted in ACC being one of the worst

effected due to commissioning of new capacities in any region – South,

East & West. Capacity addition invariably results in market share

adjustments and thereby price war.

Lower Cost – the impact is not visible

The decrease in the cost of production does not show much impact in

ACC‘s cost structure. This is basically due to the high power and fuel

cost. The fuel use in ACC plants is basically coal and hence the cost

spend on power and fuel is inevitable. As a result of high cost of power

and fuel, the decease in cost from any source is not visible in the cost

structure.

Price Follower

ACC is a price follower despite being the largest cement manufacturer in

the country. It‘s sensitivity to prices ensures that it can never lower prices

to gain market share without hurting itself more than the competitors.

These are some of the weakness of ACC Limited. The company is highly conscious

while dealing with these weaknesses. The main area of focus of the company is to

convert these weakness into the strength of the company.

Opportunities

ACC is one of the important brands of Indian cement industry. The changes in Indian

cement industry will effect directly or indirectly ACC Limited. The positive changes in


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Indian cement industry act as a opportunity for brands like ACC. Some of such

opportunities are as follows-

Infrastructure Development

The Finance Minister Pranab Mukherjee in his Union Budget 2010 speech

gave due importance to the expansion of excellent quality of physical

infrastructure in the form of roads, airports, ports and railways to maintain

economic development. He proposed few initiatives which are estimated

to have a considerable impact on Infrastructure Sector in FY 2010-11.

Housing Sector Boom

Over the next five years, the numbers of households are expected to

increase at a CAGR of 2.3 per cent, against a population growth rate of

over 1.7 per cent. The growth in urban households will be higher than

rural households, shifting the rural-urban household ratio from 70:30 to

67:33. As the growth in households is higher than the population growth,

it will accelerate the demand for new houses.

Higher demand and greater affordability due to lower interest rates and tax

breaks is expected to trigger an unprecedented housing boom. The housing

finance industry has estimated a latent demand of 33 million houses and

forecasts a growth of 50 per cent per annum till 2010. With the housing

sector accounting for 50 per cent of the current cement demand, this boom

is expected to propel even higher cement demand.

Road Construction will boost demand

The Government has set the target of constructing 20 km. of national

highways on daily basis and to trigger these changes projects have been

undertaken via public private partnerships (PPPs). The Finance Ministry

increases the allotment of road transport to Rs. 19,894 crore against the

previous Rs. 17,520 crore for 2010-11. In an attempt to revise and enlarge

the railway network, the ministry has also allocated Rs. 16,752 crore while

presenting the union budget.

Commercial Structure and Corporate Projects

With most industries like textiles, chemicals and plastics, ferrous and non-

ferrous metals and non-metallic and mineral products operating at close to

full capacity, large investment in capacity expansions across sectors is

likely to boost cement demand. Strong off take is also expected from

select segments such as commercial complexes and multiplexes in

important centres such as Bangalore, Hyderabad and Ahmedabad.


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These are some of the opportunities for Indian cement industries which helps brand like

ACC to invade new areas of development.

Threats

ACC being part of domestic cement industry has to face the threats associated with

Indian cement industries. The following are some of the threats of Indian cement

industries-

Coal Cess

The introduction of cess on coal in the recent budget is proving to be

having a multiplier effect across board in terms of cost rise. Cement

companies claims that production cost will have to rise because of this.

Excise Roll over

The Excise roll over of about 2% in the recent budget will surely increase

price of cement per bag. The excise roll over of about 2% will definitely

hit cement companies as it will increase the cost of production as well as

cost of cement per bag.

Increase in Competition

The international players in cement industries are entering in the domestic

cement market of the country, as a result of which the domestic players

like ACC etc. are facing tough competition and price war situation.

Infrastructure Development

Budgetary allocation for infrastructure has increased but in actual there is

no big picture emerging for the much needed infrastructure development.

Hence it will act as a negative point for the cement industry and its

growth.

Hence these are some of the internal strengths and weaknesses and external opportunities

and threats of ACC Limited.


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CHAPTER VI

EVALUTION AND SUGGESTIONS


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FINDINGS

The first factor to be considered is there is a lot of procedures involved in the

entire process of cement packing and loading

The second one is that the vehicle traffic at the parking lot increases gradually

based on the demand of cement

On the average every vehicle spends nearly 13 hours to complete their process

(from the parking lot to gate out)

The average time spent in parking lot is 63%, loading is 15%, and placing time is

32% y every truck. Out of 182 truck (15 days) waiting time of 65 trucks fall under

5 to 10 hours. 42 trucks fall under 0 to 5 hours 10 trucks fall under 15 to 20 hours.

Permitting the truck in between to fulfill the local needs is the major reason for

the problem

The consumption of ACC ltd in the year 2014-15 will increase to 26404 tones

SUGGESTIONS

The time wastage of trucks can be eliminated by computerizing the token issue

counter at the parking lot.

Arrives for loading rarely, except that times the parking house remaining idle.

That could be used for loading the truck so that the next truck can be called in

earlier. In order to implement this man power must be increased.

To avoid trucks waiting in the parking lot, time and date for the dispatch for the

orders placed can be informed prior to the dealers so that they can send their

trucks at the time. The truck which has its dispatch on that day arrives and waits

in the parking lot. This reduce crowd in the parking lot.

There is a need in improving the maintenance system exiting in the company.


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The delay in the checking process can be minimized by automating the system.

Improvement or changes could be bought in the work atmosphere so that it may

increase productivity results

Company should give satisfied salary to their employees

Cleanliness, sanitation facilities should be improved

Company should bring changes and improvement in drinking water facilities

Rest room and canteen facilities should be provided to the workers in hygienic

manner

Remuneration policy will helps to improvement in productivity

The company may try to make free time of the employees more pleasant and

joyful by providing better recreation facilities. Games, cultural programs, sports,

competitions etc, are the measures suggested.

Motivation and industrial training facilities should be provided to worker in a

convenient manner.

The company has to concentrate at the net profit

The liquidity ratio is in good position and thus, the company should maintain this

in future as well

Due to large and expanded operations, the company should always keep a check

in its working capital. so that day to day production can continue without any

hindrance and financial obstacles

The management of inventory should ensure that no inventories are lying in stock

for log time.


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CHAPTER VII

LEARNING EXPERIENCE


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LEARNING EXPERIENCE

The training period in ACC Limited was immensely beneficial as I learnt practically all

that I had been studying theoretically. It also enabled me to understand the

implementation of various methods, policies, accounting procedures and other aspects in

the organization.

The organization study at ACC Limited, Madukkarai Cement works, to acquaint myself

with the business environment for a period of one month from May 2nd

2012 to June 4th

2012 as a part of the MBA curriculum at the School of Management and Business

Studies, Mahatma Gandhi University, Kottayam.

The study was conducted to understand the structure, function and process of various

departments and their interdependent. During the course of study I was able to

successfully interact with the employees of the organization. They were happy to give me

all possible information. They also took me to the plants and work sites were I got the

first hand information about the organizational process and function.

The methodology consists of data collection through interview, observation and literature

review. The data collection from different sources are classified and analyzed and

interpreted based on different which an organizational structure, its function various

departments are identified. The various departmental functions are clearly identified and

their process and activities carried are recorded and the department analysis made me to

understand the departmental process based on which a process chart is prepared. The

analysis further formed the basis for identifying the departmental interdependency. The

study further relives some of the challenges faced by the department. The study helps us

to obtain an exact picture of ACC Limited based on which, a SWOT analysis is done.

Finally with the help of latest statistics available for the organization, the present trend

and current scenario of ACC Limited is clearly revealed.


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CHAPTER VIII

CONCLUSION

&

BIBLIOGRAPHY


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CONCLUSION

From the above study conducted in ACC Madukkarai Cement Works, the

departmental structure and functioning of ACC Limited and its other plants become clear

to a large extend. The factors related to the functioning of each department and of the

organization as a whole become clear from the study conducted in ACC Limited.

From the above study the theoretical knowledge has become the experienced one. It

helped to understand and learn the actual structure and working of each and every

department of an organization. It also helped to observe and analyze closely the function

and procedure of each and every department of the organization.

The study also revealed the facts related to the changing environment of the cement

industry and its impact on the brands like ACC. It also revealed the facts related to the

opportunities and threats of cement industry of the country. It also represented the

sustainable development in the Indian cement industry and the impact of growth of

Indian cement industry on the economic growth of the country.

Thus from the above study the gap between the theoretical study and practical study has

been filled up. It provided an essence of experience in the pool of theoretical knowledge.

Chris Jose.

Email: [email protected]

Mob: 9496333809

mailto:[email protected]


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BIBLIOGRAPHY

WEBSITES:

1. ACC LIMITED , http://www.acclimited.com

2. ACC HELP CENTRE , http://www.acchelp.com

3. GOOGLE SEARCH , http://www.google.com

4. CEMENTERIE NATIONALE , http://www.cimnat.com.ib/history.asp

5. ASIAN DEVELOPMENT BANK , http://www.adb.org

6. CEMENT MANUFACTURERS ASSOCIATION SITES

7. ANNUAL REPORTS OF ACC LIMITED.

http://www.acclimited.com/

http://www.acchelp.com/

http://www.google.com/

http://www.cimnat.com.ib/history.asp

http://www.adb.org/


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Documents

Chris Jose