Summer Training Project Report

On

Brand Image of ACC Cement in Cement Industry

Submitted to

Kurukshetra University – Kurukshetra

M.B.A.Session 2010-2012

Under the Guidance of Submitted By:

Ms./Mr. Sunny Sharma

Faculty M.B.A. – II

M.B.A. (Dept.) Roll No. 293558

Swami Devi Dayal Institute of Engineering & Technology

Barwala , Panchkulla (Haryana)

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ACKNOWLEDGEMENT

First of all I would like to thank my college lecturer for her whole hearted co-

operation during my summer training in ACC Barmana, which gave me a good exposure and a

hand-on experience of the modern office practices.

I would like to thanks Mr. Ravi Srivastava – Asstt. Manager Sales, for giving me an

opportunity to be associated with his esteemed team for gaining such practical knowledge &

providing me necessary inspiration as well as encouragement during the course of this training.

I wish to express a deep sense of gratitude & sincere thanks to my project guides

Mr. Ravi Srivastava (Asstt. Manager Sales ) and other staff, for giving me time, out of their

busy schedule, for imparting me with such great knowledge and making my training successful. I

also want to wish my gratitude to the following for providing me the necessary information:

Mr. Kaushal Kishore Distt. Officer

Mr. Anish kaundal Chief Manager

In the end I would like to thanks all those persons who have helped me directly or

indirectly in completing my industrial training and also this project report.

SUNNY SHARMA

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Chapter 1

Introduction

(A) JUSTIFICATION OF STUDY

The study in itself is a problem of how best to manage market of a company i.e. ACC Ltd.

Therefore, needs for conducting the study are as follows:-

After production, every company has to maintain and achieve its required sales targets from the

market to run its operation smoothly.

In case of manufacturing companies it is required to maintain about 40% - 50% of their capital as

current and remaining in the form of fixed assets for the large scale production of product. So,

every manufacturing company needs to arrange required working capital.

The production in a industry is constant process and if the sales does not match the level of

expectations then long term business interest of company suffers.

It’s necessary to know the short and long term Sales position of the firm. To know that Market

surveys and customer behavior analyses are done for the current year i.e. for the year 2011.

OBJECTIVE OF THE STUDY

The objectives aim to highlight the reasons how to improve the branch image of ACC cements

by market survey of various cements stores dealing all brands in the area of Palampur, Distt.

Kangra, H.P. There are various objectives of the study are as follows:

To find position of the firm.

To study short term sales position.

To study long term sales position.

To study brand image of the firm.

To find correlation between company and the firm.

To study the trend of the market and use it for the profits of the firm.

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B) Introduction to the Company :

HISTORY OF CEMENT INDUSTRY

F. E. Dinshaw – the founder of ACC

Associated cement companies was constituted in year 1936 under

Indian govt. act 1936.

The history of the cement industry is the story of civilization from primitive caves of prehistoric

times to the skyscrapers of the modern age. It is said that the use of cement is from period use of

fire Egyptians utilize gypsum plaster as cementing material as early as 3000 BC in building their

monuments.

Material cement has existed the roman empire Joseph Arpdin invited Portland cement in 1824

after the discovery of hydraulic properties of time, patented his product which was call

Portland cement. Portland stone which is lime stone quarried on Portland bill indorsed, England.

Modern cement is outcome of effort of chemist’s technologist & architects.

Cement is binding agent having hydraulic properties, which after hydration gives the setting

properties strengthening concrete. Intergrading, Clinker, Gypsum, & Pozzolanic material in a

proper ratio to get Portland Pozzolane Cement manufacture cement.

Cement essentially made up of material containing calcium silicon, aluminum and iron.

Limestone, marl and chalk are major source of clay shale, quartzite, bauxite iron ore provide

silicon, aluminum & iron components.

Many men of outstanding initiative and foresight contributed to the development of

the cement industry in India. Fore most them was the great industrial and patriot Mr. F.E.

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Dinshaw, who was mainly responsible for the merger of the ten existing companies into a single

organization in 1936.

This was christened the Associated Cement Companies. In defining the objectives of

the late Mr. Dinshaw had stressed that it was not to attain a monopolistic position. But that its

primary objectives will be to make and deliver cement as cheaply as possible.

Mr. Dinshaw’s confined was abundantly justified, and between 1936 and 1939 four

new factories were add to the ACC group. With the outbreak of the leadership of ACC

responded to war needs.

In the post war years Govt. set up a planning and development the industry

responded and ACC planned substantial increase in its production capacities to need national

need inspire of hurdles, ACC succeeded in achieving in its expansion program.

Today ACC is the leader in the cement industry, production 12% to 14% of India’s

total cement production. It is one of the most respected blue chip conglomerate in India and is

one of the largest integrated producer among the developing companies its annual turnover

exceed Rs. 5900 crores and its assets base exceed 3000 crores.

The company employees 12000 people at its corporate office research and constancy

directorate, 13 cement plants, 3 refractory plants, 11 regional offices and various other new

businesses. Cement continues to be core business activity, but ACC moving into Greenfield

areas, advanced materials, hi-tech refractories and refactory intermediates a broad spectrum of

constancy packages and engineering products and services, enroot, the company has acquired

and signed moue’s to facilitate transfer of technologies and Access to export and market.

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,

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some stockbrokers in the country's leading stock exchanges continued to refer to this company

simply as 'The Merger'.

ACC's First Board Meeting in 1936 at The Esplanade

Sir Nowroji B Saklatvala was the first chairman of ACC. The first Board included distinguished

luminaries of the Indian business world of the time - names like J R D Tata, Ambalal Sarabhai,

Walchand Hirachand, Dharamsey Khatau, Sir Akbar Hydari, Nawab Salar Jung Beadier and Sir

Holy Mody among others.

MAJOR COMPANIES IN THE CEMENT INDUSTRY ARE:-

The Associated Cement Companies Ltd.

Birla Group.

Larsen & Turbo.

J.K. Group.

Jaypee cement.

Guraj Ambuja.

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INTRODUCTION OF ACC

HISTORY OF ACC

Many men of outstanding initiative and foresight contributed to the development of the cement

industry in India. Fore most them was the great industrial and patriot Mr. F.E. Dinshaw, who was

mainly responsible for the merger of the ten existing companies into a single organization in

1936.

This was christened the Associated Cement Companies. In defining the objectives of the late Mr.

Dinshaw had stressed that it was not to attain a monopolistic position. But that its primary

objectives will be to make and deliver cement as cheaply as possible.

Mr. Dinshaw’s confined was abundantly justified, and between 1936 and 1939 four new

factories were add to the ACC group. With the outbreak of the leadership of ACC responded to

war needs.

In the post war years Govt. set up a planning and development the industry responded and ACC

planned substantial increase in its production capacities to need national need inspire of hurdles,

ACC succeeded in achieving in its expansion program.

Today ACC is the leader in the cement industry, production 12% to 14% of India’s total cement

production. It is one of the most respected blue chip conglomerate in India and is one of the

largest integrated producer among the developing companies its annual turnover exceed Rs. 5900

crores and its assets base exceed 3000 crores.

The company employees 12000 people at its corporate office research and constancy directorate,

13 cement plants, 3 refractory plants, 11 regional offices and various other new businesses.

Cement continues to be core business activity, but ACC moving into Greenfield areas, advanced

materials, hi-tech refractories and refactory intermediates a broad spectrum of constancy

packages and engineering products and services, enroot, the company has acquired and signed

moue’s to facilitate transfer of technologies and Access to export and market.

Associated cement companies was constituted in year 1936 under Indian govt. act 1936.

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ACC has distributed its operation in following three regions:

NORTH REGION (CAPACITY 6.3 MTPA)

(Regional office: Delhi)

Gagal I & II

Tikaria

Lakheri

Kymore

SOUTH-WEST REGION (CAPACITY: 6.1 MTPA)

(Regional office: Pune)

Wadi

Chanda

Madukarrai

EAST REGION (CAPACITY: 3.5 MTPA)

(Regional office: Kolkatta)

Chaibasa

Sindri

Bargarh

Jamul

Damodar Cement Works

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MISSION, VISION AND STRATEGY OF ACC LTD:-

QUALITY:- To make continuous improvement in the quality of our product

and services and add some essential features for customer satisfaction and

ensure their supply at fair prices.

PROFITABILITY: - To achieve fair and reasonable return on capital

employed by making optimum utilization of available resources and

increasing productivity & effectiveness throughout the company.

RESPONSIBILITY: - To fulfill our obligation to society, specifically in the

area of rural development and in safeguarding.

LEADERSHIP: - Maintain our leadership of the Indian cement industry

through the country modernization and expansion of our manufacturing

Region (South West)Region (South West)

Region (East)Region (East)Region (North)Region (North)GAGALGAGAL

TIKARIATIKARIA

LAKHERILAKHERI

KYMOREKYMORE

JAMULJAMUL

CHAIBASA

CHAIBASA

SINDRI

SINDRI

DCWDCW

BARGARHBARGARH

CHANDACHANDA

WADIWADI

MADUKKARAIMADUKKARAI

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facilities and activities and through the establishment of a wide and efficient

marketing network.

GROWTH: - Ensure a steady growth of business by strengthening our

position in the cement sector.

EQUITY: - Promote and maintain fair industrial relation and environment for

the effective involvement, welfare and development of staff at all levels.

VISION:- Vision of ACC is to be a world class corporation with diverse

business built around ACC’sunita core competencies and knowledge base in

cement refectories advanced material engineering geology mining and

research.

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.

The Vision statement narrates these areas as:-

ACC is a trusted and ethical organization

ACC delivers enduring value to investors and other stakeholders

ACC is committed to environment protection and the well being of the commu-

nity.

This statement is synonymous with balancing the Triple Bottom Line –

defined as the achievement of three interdependent and mutually reinforcing

goals of economic development, social development and environmental

protection.

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ACC SHARED VISION

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ACC is a customer driven

org.

ACC has employees who are committed to delivering ultimate customer satisfaction.

ACC is the most preferred brand in India.

ACC is a customer driven

org.

ACC has employees who are committed to delivering ultimate customer satisfaction.

ACC is the most preferred brand in India.

ACC is a learning org.

ACC is alert to the changes in business environment and respond effectively.

ACC adopts world class business practices to surpass global benchmarks.

ACC develops employees through need based learning.

ACC is a learning org.

ACC is alert to the changes in business environment and respond effectively.

ACC adopts world class business practices to surpass global benchmarks.

ACC develops employees through need based learning.

ACC inspires trust and respect.

ACC is a trusted and ethical org.

ACC is committed to environment protection and well being of the community.

ACC inspires trust and respect.

ACC is a trusted and ethical org.

ACC is committed to environment protection and well being of the community.

ACC is a great place to work.

ACC has HR policies which promote a healthy work place.

ACC rewards employees well based on profitability and performance.

ACC cares for its employees welfare.

ACC is a great place to work.

ACC has HR policies which promote a healthy work place.

ACC rewards employees well based on profitability and performance.

ACC cares for its employees welfare.

ACC is a customer driven

org.

ACC has employees who are committed to delivering ultimate customer satisfaction.

ACC is the most preferred brand in India.

ACC is a customer driven

org.

ACC has employees who are committed to delivering ultimate customer satisfaction.

ACC is the most preferred brand in India.

Value Creation

ACC delivers long term values to i nvestors and to other shareholders

BUSSINESS STRATEGY

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20072007 20082008 20092009 20102010 20112011

Market Share Maintain leadership position in the industry.Maintain leadership position in the industry.

Competitiveness Leadership in quality, services and cost efficiency.Leadership in quality, services and cost efficiency.

Organization Accountable, Motivated and responsive.Accountable, Motivated and responsive.

Corporate Citizenship

Create safe place to work

Become employer of choice.

Reputed corporate entity.

Leadership in sustainable development.

Enhance community living standards.

Create safe place to work

Become employer of choice.

Reputed corporate entity.

Leadership in sustainable development.

Enhance community living standards.

Bottom LineAchieve internal target for growth in EBITDA over 2007.Achieve internal target for growth in EBITDA over 2007.

VARIOUS DIVISIONS OF ACC

1) OPERATIONS DIVISIONS

This division is responsible for the operation of all the Company’s Cement Works & its slag

granulation plant. The Cement plants are

a) Bhupendra Works b) Chaibasa Works c) Chanda Works

d) Gagal Works e) Jamul Works f) Kymore Works

g) Lakheri Works h) Madukkarai Works i) Mancherial Works

j) Sindri Works k) Wadi Works

The division consists of the following departments sections:

a) Factory Operations b) Major Repairs

c) Mining Machinery d) Audit & Administration

e) Railway Liaison f) Safety

g) Environment & Pollution Control

2) FINANCIAL DIVISIONS

The division is responsible for all accounting & financial functions. This is addition, takes care

of the taxation function, the Company’s Provident Fund & Insurance. All receipts, development

& monitoring of funds is done by this division. This comprises of following sections:

a) Corporate Tax and Insurance

b) Payrolls, Provident Funds & Officers Superannuation Funds.

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c) Company Accounts

d) Treasury

f) Project Finance

g) Sales Accounting & Pricing Section

h) Management Accounting Sections

3) MATERIALS MANAGEMENT DIVISIONS

This division deal with materials management policy as also requirement of major raw material,

packaging materials, purchasing of capital equipment, high value & consumption stores & spares

& projects requirements.

This division is professionally manned to procure all stores & spares at economical prices & to

study the markets trends as well. Vendor development, supply diversification & import

substitution form an important part of this division.

4) CEMENT MARKETING DIVISION

With liberalization there is an increase in completion from more manufactures, more brands,

higher grade products, increased production & free availability of Cement in the country.

In the buyer’s market & in order to meet the competition the Cement Marketing Division has

taken the following steps to retain the company’s share as a market leader:-

i) The company has appointed a network of 10,000 stockiest in all rural urban markets

ii) Opening of warehouses: The Company has organized warehousing facilities at almost all

important urban consumption centers in the country so that ACC Cement is freely

available to the consumers in proximity to the point of consumption.

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iii) The company has customer service cells in the North, South, East & West regions to

attend all kind of customer’s complaints to provide promp ans satisfactory customers

servicing.

The Cement marketing to the above, CMD has eleven regional Marketing Officers situated at

Ahmedabad, Bangalore, Mumbai, Chandigarh, Coimbatore, Calcutta, Indore, Kanpur, Pune,

NewDelhi, Secundrabad.

5) CORPORATE COMMUNICATION DIVISION

The function of this division includes Advertising, Publicity and Public Relations. It also acts an

information bureau dealing with a variety of enquiries from outside, catering to numerous

requests for information from within. It also publishes a houses journal-ACC Parivar in English

& in Hindi.

6) REFRACTORIES DIVISION

The manufacturing facilities of the refractories are concentrated at four locations Katni &

Kymore in Madhya Pradesh, Sindri & Nagpur.

The country wide network of regional offices handles refractories sales. The refractories division

at corporate offices is responsible for the operation of the refractories Business.

Today ACC refractories in India’s

Leading authority on alumina & alumino silicate based refractories products.

Largest produces of castables.

Only producer of international quality calcium aluminate binders.

Only producers of synthetic refractories intermediates like tabular alumina,

bubble alumina sintered mallite, sintered sillimanite & insulating aggregated.

Leading exporter world wide, of top quality high alumina products.

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7) DOMESTIC AND INTERNATIONAL TRADING DIVISION

This division is the marketing trust for the company’s non cement business. The scope of the

division includes explores, marketing of franchised & allied products manufactured by ACC’s

subsidiaries & associate companies. It also include marketing agency in India for our joint

venture products like Alcoa, Asahi Glass etc.

8) PROJECTS DIVISION

The projects division is responsible or the design & construction of the company’s new projects.

The division formulates implements, monitors & control annual capital expenditure budget for

the new projects.

The various functions under the division are listed below:

a) Process Engg. & Design

b) Civil Engineering

c) Electrical & Instrumentation Engineering

d) Projects Execution Group

e) Project Services

9) INFORMATION SYSTEMS DEPARTMENT

The IS department’s basic function are to provide adequate & efficient computer services at the

Corporate Office Works & RMO’s for routine data processing as well as management

information for planning & control of various functions of the company. It handles all maters

connected with installation of the computer hardware & its subsequent operations at various

locations wherever it is installed. The deptt. Deals with all computerized systems designs,

development & modifications as well as operation research work for the entire company.

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10) SECRETARIAL DIVISION

The division ensures compliance with the statutory enactment applicable company & in

particular the comparises act & other important legal matters. The share deptt. Comes under the

preview of the secretarial division.

11) OVERSEAS PROJECT CELL

This department is primarily responsible for the development of overseas business opportunities

for the company & for monitoring the performance of contracts awarded. It is responsible for

putting together a package of services, as required by the prospective client &

tendering/negotiating with prospective clients to secure business.

12) CORPORATE PLANNING DEPARTMENT

The department assists the top management in developing long term/short term objectives,

strategies in existing new business lines. It undertakes studies & explores new business

opportunities for divaricating.

13) ADMINISTRATIVE SERVICES DIVISION (A.S.)

This division renders various services & assistance to the different division/deptt. at the head

office & the subsidiaries of the company.

It provides its services in the following areas:

a) Property matters

b) Building Maintenance Services

c) Maintaining Inventory of furniture & furniture etc.

d) Communication Services

e) Vehicle Procurement & maintenance

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14) HUMAN RESOURCES DIVISION

The human Resources Division covers the entire human resources management activity in the

company. It guides the unit in formulation & implementation pf personnel policies in the area of

Human Resources Development, Industrial Relations, Personnel Administration, Welfare &

Training.

15) RESEARCH & CONSULTANCY DIRECTORATE

This fully autonomous division is the brain of the company & serves as the prime origin to meet

all the technological & innovative needs of the organization. It is a project engg. & technical

consultancy organizations. RCD’s expertise covers the following areas of specialization:

a) Cement & Mineral Projects

b) Geology, Environment & Mining

c) Erection & Construction

d) Refractories & Development

e) Agri-horticultural & Rural Development

f) Management Training

g) Environment Management

h) Advanced Management

i) Advanced Materials

Today, RCD’s services offered are even more broad based, catering to industries like cement,

refractory, ceramics, chemical, minerals processing, petrochemical, fertilizers, ferrous & non

ferrous among others.

ACC LTD. PROGRAMS

Company is running various system programs which provide the valuable system to the workers

to show their job efficiently.

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QUALITY POLICY AT ACC LTD

Build quality in, Do not sort bad quality out

Quality improvement is limitless & therefore continuous

Concern for quality is for the entire organization & not for the product

Satisfy customer fully & continuously

CORPORATE PROFILE OF ACC LTD.

ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's operations are spread throughout the country with 14 modern cement factories, more than 30 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. ACC's research and development facility has a unique track record of innovative research, product development and specialized consultancy services. Since its inception in 1936, the company has been a trendsetter and important benchmark for the cement industry in respect of its production, marketing and personnel management processes. Its commitment to environment-friendliness, 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 has made significant contributions to the nation building process by way of quality products, services and sharing its expertise.

In the 70 years of its existence, ACC has been a pioneer in the manufacture of cement and concrete and a trendsetter in many areas of cement and concrete technology including improvements in raw material utilisation, process improvement, energy conservation and development of high performance concretes.

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 SuperBrands of India.

The company's various businesses are supported by a powerful, in-house research and technology backup facility - the only one of its kind in the Indian cement industry. This ensures not just consistency in product quality but also continuous improvements in products, processes, and application areas.

ACC has rich experience in mining, being the largest user of limestone, and it is also one of the principal users of coal. As the largest cement producer in India, it is one of the biggest customers of the Indian Railways, and the foremost user of the road transport network services for inward and outward movement of materials and products.

ACC has also extended its services overseas to the Middle East, Africa, and South America, where it has provided technical and managerial consultancy to a variety of consumers, and also helps in the operation and maintenance of cement plants abroad.

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ACC is among the first companies in India to include commitment to environmental protection as one of its corporate objectives, long before pollution control laws came into existence. The company installed pollution control equipment and high efficiency sophisticated electrostatic precipitators for cement kilns, raw mills, coal mills, power plants and coolers as far back as 1966. Every factory has state-of-the art pollution control equipment and devices. ACC demonstrates the practices of being a good corporate citizen undertaking a wide range of activities to improve the living conditions of the under-privileged classes living near its factories.

A GLIMPS ON THE HISTORY OF SUCCESS

The Associated Cement Companies Limited is a multi business enterprise with operation in

cement manufacturing. It is one of leading companies in India, producing more than one-

fourth of national output. ACC. Ltd as company duly registered under Indian Companies

Act 1956, having its registered office at Cement House, 121 Maharishi Karv Road, Mumbai-

400020.It has 14 cement plants spread all over the country and has major force of its industry

through customer satisfaction & through continuous innovation in quality of the product. As

company ACC Ltd. is committed to make and deliver as cheaply as possible.

Initially, when cement was introduced in 1914, South India Industry Ltd.started first cements

plant near Madras. But due to lack of labors and knowledge in manufacturing of cement, this

plant after a few months working closed down. After ward in 1912-1919 two more plants

wee started in Katni situated in Madhya Pradesh and in,Lakhri in Rajasthan, before 1924 six

more plants were started at various other places but they did not led any good start.

In 1936 with the effort of Mr.Dinshaw a group of companies and formed Associated Companies

Ltd.

Many men of outstand initiative and foresight contributed towards the development of cement

industry in India. About 62 years ago in 1936 a number of companies belonging to the house of

Tata Khatias and Kellick, Nixon combined to from “The associated Cement Companies

Ltd”.Great industrialist and patriot Mr.F.E.Dinshaw was mainly responsible into a single

organization.

The objectives of this merger were not to attain monopolistic position but to make and deliver

cement as cheaply as possible. Mr. Dinshaw added for new factories in ACC group from 1929

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to 1936. During Second World War, the cement was deliver as essential commodities under

the defences of Indian rule and through under price and distribution control. The cement

industry gets further impetus under the leadership of ACC.

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.

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

chemicals.

1961 Oil well Cement manufactured at ACC Shahabad Cement Works in Karnataka for

cementation of oilwells up to 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.

1968 ACC supplied and commissioned one-million-toner 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.

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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.

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,

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the largest in the country, and among the largest sized kilns in the world.

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.

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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 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

2007 ACC commissions Wind energy farm in Tamilnadu.

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

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Corporate Citizen of the year 2008

AWARDS & ACCOLADES

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,

afforestation, clean mining, Environment awareness and protection

Awards & Accolades

IMC Ramkrishna 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 Karan Sarawagi Environment Award - by The Federation of Indian

Mineral Industries for environment protection measures.

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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

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

Excellence in Management of Health, Safety and Environment : Certificate of

Merit by Indian Chemical Manufacturers 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

Greentech 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 Paryavaran Puraskar - for outstanding work in Environmental

Protection and Environment Performance by the Madhya Pradesh Pollution.

Control Board.

National Award for Fly Ash Utilisation - by Ministry of Power, Ministry of

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

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manufacture of Portland Pozzolana 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 Industry (CII)

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

efficient disposal of industrial wastes

Best Audit Committee Award 2008 - ACC Audit Committee has been awarded

the Best Audit Committee Award 2008 by the Asian Centre of Corporate

Governance & Sustainability and Indian Merchants' Chamber.

"Vandals Sant Gather Guruji Maharaj - Chhattisgarh Paryavaran Puraskar"

2008, in the Industrial Category for best efforts in Environment Conservation in

Chhattisgarh State.

Safety Innovation Award by the Institution of Engineers, New Delhi

Greentech Environment Excellence Award by Greentech Foundation

Good Green Governance Award by Srishti Publications, Delhi

The Federation of Indian Mineral Industries, (FIMI)

New Delhi has selected ACC, one of the four companies in India, to be

Members of the "Sustainable Miners Club" for outstanding contribution to the

national goal of sustainable development through excellence in environmental

conservation' scientific research and social development in harnessing natural

resources.

Tikaria wins IMC Ramkrishna Bajaj Certificate of Merit 2008

Gagal wins IMC Ramkrishna Bajaj National Quality Performance

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Excellence Trophy 2008

CNBC-TV18's India Business Leaders Award in the category India

Corporate Citizen of the Year 2008

Greentech Safety Gold Awards 2009 - for outstanding performance in Safety

management systems by Greentech Foundation

Council for Fair Business Practices, Jamnalal Bajaj UCHIT VYAVAHAR

PURASKAR 2008 – in the category Manufacturing Enterprises – Large – for

exemplary record of practicing and promoting fair business practices.

ACC - Achievements

YearAchievement

1936 The Associated Cement Companies Limited incorporated on August 1

1947 India's first entirely indigenous cement plant installed at Chaibasa.

1955ACC Sindri uses waste material - calcium carbonate sludge -from fertilizer factory

at Sindri to make cement

1956 Bulk Cement Depot established at Okhla, Delhi

1961Blast furnace slag, (a waste by-product from steel) from TISCO used at ACC

Chaibasa to manufacture Portland Slag Cement.

1961Oilwell Cement manufactured at ACC Shahabad for cementation of oilwells upto a

depth of 6,000 feet.

29

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

1965Manufacture of Portland Pozzolana Cement using naturally available materials. An

eco-friendly cements using an eco-friendly process.

1966

ACC inducts use of pollution control equipment and high efficiency sophisticated

electrostatic precipitators for its cement plants and captive power plants decades

before it becomes mandatory to do so.

1978Introduction of the energy efficient pre-calcination technology for the first time in

India.

1982Commissioning of the first 1 MTPA (million tonne per annum) plant in the country

at Wadi, Karnataka.

1984ACC achieves a breakthrough in import substitution by developing and supplying a

special G type of oil well cement to ONGC.

1987ACC develops a new binder, working at sub-zero temperature, which is

successfully used in the Indian expedition to Antarctica.

1992Incorporation of Bulk Cement Corporation of India, a JV with the Government of

India.

1993 Commercial manufacture of ready-mixed concrete at Mumbai.

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

largest in India, and among the largest sized kilns in the world.

2002 Supply of High Performance Concrete of M -75 grades to JJ Flyover in Mumbai

becoming first time in India to supply concrete of such high strength level for use in

30

a mega construction project.

2005

Commissioned Asia’s largest Tube Conveyor of 2.5 kms for transportation of

Limestone from mines to plant at the newly modernized Chaibasa Works in

Jharkhand.

CORPORATE GOVERNANCE

The importance of Corporate Governance has always been recognised in ACC. Much before

Corporate Governance guidelines became applicable and mandatory for listed companies; ACC

had systems in place for effective strategic planning and processes, risk management, human

resources development and succession planning. The Audit Committee in ACC was constituted

as far back as in 1986. The Shareholders-Investors Grievance Committee was formed way back

in 1962 and the Compensation Committee was convened since 1993. The Company’s core

values are based on integrity, respect for the law and strict compliance thereof, emphasis on

product quality and a caring spirit. Corporate Governance therefore in ACC is a way of life.

ACC is a professionally managed Company with a majority of its Directors being Independent

Directors. The Board of Directors has always consisted of persons who are professionals in their

respective fields and with unquestionable integrity and reputation. The role, responsibility and

accountability of the Board of Directors is clearly defined. Members of the Board have full

freedom to express their views on matters placed before them for deliberation and consideration.

It is the continuous endeavor of the Board of Directors to achieve the highest standards of

Corporate Governance through the adoption of a strategic planning process, succession planning

for attracting, motivating and energizing human resources, identification of major risks and the

way and means to manage such risks, an effective communication policy and integrity of

Company’s internal control systems. The Board of Directors are also constantly looking at ways

and means to ensure that the most effective use is made of the scarce resources at its disposal and

31

that the management and employees have the freedom to take the Company forward within the

framework of effective accountability.

The Annual Reports, press releases and other communication have always made full

disclosures on various facets of importance to the stakeholders, particularly with regard

to information relating to financial matters, company’s operations/performance, stock

movements etc.

CORPORATE SOCIAL RESPONSIBILITY:

Today we define Corporate Social Responsibility as the way a company balances its economic, social and environmental objectives while addressing stakeholder expectations and enhancing shareholder value.

But 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.

Corporate Social Responsibility Policy:

“The Company shall continue to have among its objectives the promotion and growth of the national economy through increased productivity, effective utilization of material and manpower resources and continued application of modern scientific and managerial techniques, in keeping with the national aspiration; and the Company shall continue to be mindful of its social and moral responsibilities to consumers, employees, shareholders, society and the local community.In pursuance of the above objective, ACC acknowledges the importance of the concept of inter-dependence of all sections of society. In particular, its focus revolves around the community residing in the immediate vicinity of its Cement Plants and Mines where it seeks to actively assist in improving the quality of life and making this community self-reliant. In line with its abiding concern for preservation of the ecological balance and safeguarding the health of the community, ACC has always actively demonstrated its firm resolves to protect the environment

Mindful of its great tradition, ACC is deeply committed to enhancing its reputation and respect built over the years in industry and society for its professional style of management based on philosophy of the best in business ethics.”

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PERFORMANCE MANAGEMENT:-

The Company’s performance management

system is in itself a benchmark that provides ample opportunities and

motivational incentives to employees to reward and retain good talent. There

are Performance Linked Incentives, Good Work Awards, Letters of

Appreciation, Special Increments, Promotions, Nomination to external

training programmes in India and abroad, public felicitation and appreciation

Awards. Some plants felicitate and reward Best Employee and Employee of

the Month. Employees who display aptitude are invited to become Trainers

themselves and receive Train the Trainer facilitation. ACC’s new Performance

Management System incorporates a linkage between an individual

employee’s performance indicators with the organizational goals which

allows the employee to see his or her role in contributing to achieve the

organization’s objectives. Training is imparted to take care of an individual’s

career development as well as functional and skills enhancement.

Competency and Development training inputs include Skill and general

performance enhancement, communication skills and career development.

EMPLOYEE SATISFACTION:-

In addition to periodic internal Employee

Satisfaction Surveys, ACC participates in Employee Satisfaction and Work

Place Surveys conducted by reputed external agencies like Hewitt Associates

and Grow Talent. ACC has also retained reputed firms like Mercer and Boston

Consulting Group to study the internal work environment and employee

policies to suggest areas of improvement. We 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

33

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. The company has just concluded a survey to

assess employee perceptions of the quality of life of its employees,

particularly those posted at our cement plants.

ARCHITECTS OF SUCCESS.

NO NAME OF DIRECTOR NATIONALITY

1. MR.N.S.SEKHARIA

(CHAIRMAN)

INDIAN

2. MR.PAUL HUGENTOBLER (DEPUTY

CHAIRMAN)

SWISS

3. MR.SUMIT BANERJEE (MANAGING DIRECTOR) INDIAN

4.MR.A.L.KAPUR

INDIAN

5.MR.S.M.PALIA

INDIAN

6. MR.NARESH CHANDRA INDIAN

7. MR.MARKUS AKERMAN SWISS

8. MR.D.K.MEHTROTRA INDIAN

9. MR.R.A.SHAH INDIAN

10. Dr.NIRMALYA KUMAR INDIAN

34

11. MR.SHAILESH HARIBHAKTI INDIAN

12. MR.ANIL SINGHVI INDIAN

13. MR.A.K.JAIN (WHOLETIME

DIRECTOR)

INDIAN

ENVIRONMENTAL POLICY OF ACC LTD.

Ensure continual improvement in environmental performance by

carrying out periodic review of action plan.

Prevent pollution and minimize fugitive emissions.

Comply with all applicable legal and regulatory requirements.

Create environment awareness among employee and community at large.

Minimize the waste generation at source reutilize the work if generated.

Conserve energy and mineral resource.

BUSINESS RELATION BETWEEN ACC & HOLCIM

A new association was forged between ACC and the Holcim group of Switzerland in 2005. In

January 2005, Holcim announced its plans to enter into a long-term strategic alliance with the

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

the time held 13.8 per cent of the total equity shares in ACC. Holcim simultaneously announced

its bid to make an open offer to ACC shareholders, through Holdcem Cement Pvt Limited and

ACIL, to acquire a majority shareholding in ACC. An open offer was made by Holdcem Cement

Pvt. Limited along with Ambuja Cements India Ltd. (ACIL), following which the shareholding

of ACIL increased to 34.69 per cent of the Equity share capital of ACC. Consequently, ACIL has

filed declarations indicating their shareholding and declaring itself as a Promoter of ACC.

35

Holcim is the world leader in cement as well as being large suppliers of concrete, aggregates and

certain construction-related services. Holcim is also a respected name in information technology

and research and development. The group has its headquarters in Switzerland with worldwide

operations spread across more than 70 countries. Considering the formidable global presence of

Holcim and its excellent reputation, the Board of ACC has welcomed this new association.

The company implemented an ERP system that has standardized business process to run SAP

software called “CONNECT INDIA” system is based on a template that caters to ready-mix

concrete business, cement and AFR process of the company with the assistance of Holcim

Group. All operations, locations and transaction become fully integrated in a manner i.e. on line

with updated data and information. The new system will greatly enhance the company’s

capability to capture and process a comprehensive range of data to be used for decision making

and day to operation while automating some processes which were not part of earlier IT system.

Project connect India integrates tighter control through well defined authorization profiles and

rigid system. The new features serves as triggers to usher in better work habits and practices.

ACC’s Head Office - Cement House, 121 Maharshi Karve Road, Mumbai.

ACC’s registered office was first located at Esplanade House in South Mumbai, a graceful edifice that still stands out in its neighborhood. The head office then shifted to its own premises in Cement House shown here. The address of this stately building was then Number 1, Queen’s Road, and

36

Churchgate. An all-India competition in 1938 had invited leading architects of the time to send in their designs of which this elegant design made by Ballardie Thompson & Mathews was chosen as the winning entry. Work on its construction began in 1939 and was completed during the War period. The building was occupied by the Royal Air Force and vacated only in 1946.

In 2009, a unique project, has transformed Cement House into an energy efficient environment-friendly building. Its attractive refurbished façade now houses an ultramodern office equipped with space-saving modular workstations, access control and intelligent lighting with motion and light sensors, waste management systems and water saving devices set amid greenery and a central atrium that further expands the sense of light and space.

SUBSIDIARIES AND ASSOCIATES

Bulk Cement Corporation (India) Limited (BCCI)

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 tonne 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.

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

37

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.

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.

ACC's brand name is synonymous with cement and enjoys a high level of

equity in the Indian market. Our range of cements 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 9,000 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 is essentially a

people’s brand of cement with more than 80 per cent of sales made through 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.

Complementing this is a unique customer services cell comprising qualified civil engineers, who

assist and advise customers with prior and post sales service. This service begins with selection

of type and grade of cement (where applicable) to troubleshooting and on-site assistance.

GAGAL CEMENT WORKS

INTRODUCTION TO GAGAL CEMENT WORKS

38

The Gagal Cement Project was initiated in October 1978. Construction work started in august

1980 and erection of machinery in October, 1981, on 12th March 1984 Gagal Plant-1 was

successfully commissioned and commercial production commenced with initial capacity of 5.6

lakh tones per annum, Gagal Plant-II was commissioned in 1994 and present capacity of the

plant is 4.4 MTPA of cement.

The plant is based on the most modern process of cement manufacture; namely a dry process

suspension preheated kiln with proclaimed. The limestone is crushed in the crusher; it is then

ground in the raw mill along with shale and iron ore to fine powder. The ground material is

blended to a uniform consistency and fed to the kiln system pulverized coal is fired in the kiln

system to heat the material to a temperature of 1450 Deg.celcius. The material undergoes a series

of chemical reactions to form a clinker. The clinker is cooled in the clinker cooler and stored in

clinker silos. It is extracted from the silos and inter ground along with Gypsum and Pozzolananic

material to form Portland Pozzoiana cement. The cement is stored in cement silos. It is packed in

50-kg bags by automatic packing machines, loaded in trucks by auto-loaders and various

consumption centres in Himachal Pradesh as well as the neighbouring states of Punjab and

Haryana.

POWER:

The co. met 54% power requirement through captive generation. Cost of captive power

generation was 34% lower as compare to grid power. In keeping with its policy of maximizing

its captive power capability. It is also in the process of increasing its thermal captive power

generation capacity by another 45 MW. The company has already achieved significant reduction

in cost in specific area like fuel, power and manpower. The drives for cost reduction will be

further unified all area of operations.

MAIN RAW MATERIALS:

Limestone

Quartzite

Iron ore

39

Shale

Gypsum

Fly ash

EMPLOYEES IN GAGAL CEMENT WORKS:

The company is having the strength of manpower approximately nine hundred, out of which 90

are from management staff. Company needs low employees because of automation.

CERTIFICATION:

Certification from IS/ISO 9002, ISO 14001 for environmental management system and OHSAS

18001 for adopting high class measure in the sphere of occupational health and workers safety in

the manufacturing of cement.

TOTAL PRODUCTIVE MAINTENANCE

ACC Gagal Cement Works has continuously tried to improve upon its operational productivity

through world class plant management practices known as Total Productive Maintenance (TPM).

TPM is the integration of the basic functions of Production and Maintenance allowing the

employees to jointly take the responsibility for, and ownership of their work processes and

equipment. It aims to maximize Overall Equipment Effectiveness (OEE). It establishes and

promotes a systematic approach to achieve operational excellence through autonomous working.

TPM involves all employees at all levels in every function of its implementation. The most

important point about TPM is that it continuously encourages all the employees to undertake

continuous improvement of all work-related processes and systems by adopting a proactive

problem solving approach. 15th of every month is the day for TPM gate Meeting.

We are striving towards following goals using TPM:

Zero Breakdown

Zero Accident

Zero Defect

40

Zero Waste

Zero Inventory

SAFETY

Gagal Cement Work constantly keeps a vigil on the safe practices of doing work and in this

regard expects the same from all its employees. The following table presents the expectations

from both the participants in this regard.

Deputy Manager-Safety coordinates all activities related to safety at works. Besides day to day

safety functioning, safety committee meets once in every month. The committee consists of

equal number of representatives form management and wage board employees.

All employees working inside the factory are required to wear helmets, safety shoes and

other safety gadgets. Other regular safety activities include monthly Gate Meeting, on first of

every month, Nukkad Drama, Quiz & Slogan Competition celebration of National Safety Day

etc.

OUR SAFETY COMMITMENT

MANAGEMENT EMPLOYEES

1. Provide Safe working

Condition

1.The care of oneself and colleague

2.Provide system for the safe control of work 2. Immediately report any unsafe

condition/hazard

3. Supply information on work h 3. Look out for hazards and potential

41

Azard dangers to self and others

4. Arrange adequate training and instrucyion in

safe working practices

4. Do not take any short – cuts

5. Make appropriate protective clothing and

equipment available

5. Know the safety guidelines and follow

working instructions

6. Punish people violating instructions on safety

and health

6. Always use safety equipment indicated

and provided

GEOGRAPHICAL DETAILS

Among the largest private sector companies, ACC is the only company to set up a cement plant

in 1982 in backward designated area at Barmana, Distt. Bilaspur (HP) and started production

with effect from 12th March 1984.

Barmana is 18 kms north to Bilaspur. The National Highway No.21 connecting Impala in

Haryana and Manual in H.P. passes through Gagal Cement Works and its colony.

The colony is at latitude 31.5-degree north and 77degree East Longitude. The total land acquired

for the factory, colony and mining area is 2319.10 bighas. Factory covers 365 bighas, the colony

covers 345 bighas and the mining area is about1633 bighas. The topography of the area around

the worksis mount-rainouts.Mean maximum temperature of the area goes upto 45 degree Celsius

in the month of June and the minimum temper- ature upto 3-degree in the month of December.

The work has generated direct and indirect employment to the scale of nearly 12000. Nearby

Towns: Bilaspur, Sunder Nagar, Mandi.

MANPOWER ARRANGEMENT

The total manpower employed at ACC, Gagal Cement works are divided into 2 categories.

Management Staff is governed by Conduct Rules framed by the company whereas Non-

Management Staff is governed by Standing Orders certified under the Industrial Employment

(Standing Orders) Act, 1946

42

Management

Staff

TM - Top Management

WM -Works Manager

E4 - Sr. Manager

E3 - Manager

E2 – Deputy Manager

E1 – Assistant Manager

M3 – Senior Officer/Engg.

M2 - Officer/ Engineer

M1 – Junior Officer/Engineer

M - Asst. Officer/Engineer

Non-Mgmt.

Staff

DAILY PAID

Grades

A

B

C

D

E

MONTHLY PAID

Grades

TC

I

II

III

IV

V

VI

VII

MANPOWER

ORGANIZATIONAL 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.

43

BOARD OF DIRECTORS

Business Head North

MANAGING

DIRECTOR

ACC Concrete Ltd.

Business Head East Region

Business Head South & West Region

Central

Procure

Tech. Support

Operation

Commercial

Corporate

Chief Fin.

Managing

Committee

Managing

Committee

To enable better coordination of the organization’s

triple bottom line performance, it is proposed to constitute a high level team

with representatives from functions relating to the main pillars of sustainable

development to coordinate reporting and align operations in line with the

overall corporate objectives. The committee will include the heads of

Environment & Energy Conservation, Alternate Fuels and Raw Materials

Business Development, Occupational Health & Safety, Corporate

Communications & Social Responsibility, Corporate Human Resources,

Commercial Services, Central Procurement and Secretarial & Compliance.

CONTRIBUTION TO GOVERNMENT

44

Legal Secretarial &

Chief Knowled

Alternate Fuels &

Raw Material &

OH & S

Internal Audit

Business Development & Planning

Communication & CSR

Overseas Project & Consultancy

Annual contribution to center government by way of taxes, duties is 155 crore out of which for

Himachal Government is 100 crore. And along with this it is also helping Govt. as its social

responsibility. The company has constructed a Govt. Degree college; it is spending money on

schools, hospital and on other works of public welfare.

GAGAL CEMENT WORKS-AN UNRELENTLESS PURSUIT TOWARDS EXCELLENCE

Gagal Cement Works is committed to deliver quality products to the customers. Gagal Cement

Works has to its credit many a prestigious certifications like IS/ISO 9002, ISO 14001 for

environmental management system and OHSAS 18001 for adopting high class measures

in the sphere of Occupational Health and Workers Safety in the manufacturing of cement.

QUALITY POLICY

Build Quality In

Do not Sort Bad Quality Out

Quality Improvement is Limitless and therefore Continuous

Concern for Quality is for Entire Organization and Not Just for Product

Satisfy Customer Fully and Continuously

GAGAL CEMENT WORKS- A SYSTEMATIC APPROACH FOR CLEANER WORLD

ACC GAGAL Cement Works is the first point in Himachal Pradesh to have EMS certificate.

The Bureau of Indian standards awarded this certificate to the works in March 1999. The

certificate has resulted in batter understanding among all the employees, of overall

environmental issues related to the plant. The main feature of EMS at Gagal is total involvement

of employees.

EMS is a program of continuous environmental improvement following a well-defined

sequence of steps drawn from the established project management practice and routinely

applied in business environment.

ENVIRONMENTAL POLICY

45

Prevent pollution and minimize fugitive emissions

Comply with all applicable legal and regulatory requirements

Conserve water, energy and natural resources

Minimize waste generation and utilize the same

Create environmental awareness and provide clean and safe environment to

employees and community at large

PRODUCTION SYSTEM IN GAGAL UNIT

Main Raw Material

Limestone

Quartzite

Iron Ore

Shale

Gypsum

Fly Ash

MANUFACTURING PROCESS

The Gagal Cement Works is based on the most modern process of cement manufacturing namely

a dry process suspension preheated kiln with precalcener. The limestone is crushed in the

crusher. It is than grinding in Raw Mill along with Shale and Iron Ore to fine power. The

grinding material is blended to a uniform consistency and fed to the kiln system pulverized Coal

in the kiln system to heat the material to a temperature of 1500 degree Celsius. The material

undergoes a series of chemical reaction to form a Clinker. The clinker is cooled in the Clinker

Cooler and stored in the Clinker silos. It is extracted from the Silos and integrated along with

Gypsum and Pozzolanaic material to form Portland Pozzoiana cement. The cement is stored in

cement silos. It is packed in 50-kg bags by automatic packing machine, loaded in trucks by auto

46

loaders and various consumption centers in Himachal Pradesh as well as the neighbouring states

of Punjab, Haryana and J&K.

POWER

The co. met 54% power requirement through captive generation. Cost of captive power

generation was 34% lower as compare to grid power. In keeping with its policy of maximizing

its captive power capability. It is also the process of increasing its thermal captive power

generation capacity by another 45 MW. The company has already achieved significant reduction

in cost in specific area like fuel, power and manpower. The drives for cost reduction will be

further insified all area of operations.

MAP KEY

00 – Limestone quarry and crushing plant.

01 – Lime Stone Stock Pile.

02 – Additive Hooper.

03 – Additive Storage.

04 – Raw Mill Building.

05 – Blending & Storage Silo.

06 – Preheater.

07 – Gas Conditioning Tower and ESP.

08 – Kiln.

09 – Cooler.

10 – Deep Bucket Conveyor.

11/12 – Clinker/Gypsum Storage.

13 – Coal Mill Building.

47

14 – Coal Mill and Bag Storage.

15 – Cement Storage Silo.

16 – Packing & Dispatch.

17 – Cement Control Room.

DEPARTMENTATION:

QUARRY DEPARTMENT

The Quarry Department is mainly concerned with the maintenance of Mines at ACC Barmana.

The sub-departments namely MINE; ELECTRICAL, GARAGE, CRUSHER, STACKER &

RECLAIMER support the Quarry department.

MINES

Gagal lime Stone Mine is captive mine of M/S ACC Ltd., Gagal Cement Works. The mining

lease covers an area of 265.97 hectares. Presently the mine is one of the largest mine of northern

India and is fully mechanized by Heavy Earth Moving Equipment's.

LIME STONE AND COAL HANDLING SECTION

LIMESTONE

The crushed limestone is received from Gagal Quarry with the help of a series of belt conveyer

and stacked in stockpile with the help of stackers.

COAL

Coal is used as a fuel for firing in the Kiln. Gagal Cement Works receives coal from different

collieries of CCC, ECL and NEC by rail upto Kiratpur Sahib.

LABORATORY DEPARTMENT

Laboratory department in coordination with other departments carries our regular quality control

functions. Quality and process control measures are exercised at each and every stage of process.

48

Inspection and procurement of raw materials, its testing, quality control of input materials,

intermediate products at different level of process and final product that is cement are done as

per procedures. Inspections and Test Records are maintained in the Laboratory as per the scheme

of testing and inspection. The departmental activities are coordinated by Deputy Manager-QPC

who reports to Manager- Production.

Gagal Works laboratory has three sections:

1. Chemical & Instrumentation laboratory

2. Physical Laboratory

3. Site Laboratory

PROCESS DEPARTMENT

The Process department guides the operations in maintaining process parameters so that

production is within the desired range of quality parameters. The process parameters are arrived

at after discussions with the Departmental Heads of various sections (Raw Mill, Cement Mills &

Laboratory)

Manager – Production coordinates the departmental activities.

RAW MILL

Activity of Raw Mill starts from feeding Raw Material (limestone, Quartzite and Iron Ore) to the

Mills and ends at filling the Raw Meal to Silos.

RAW MATERIAL FEEDING

Lime stone feeding to Raw Mills/Roller Mills is through the sequence of belt conveyors to

different Hoppers. Feed size of limestone is 90 mm and Mills Scale; Shale feeding is from the

Gantry to the respective Hoppers through sequence of belt conveyors. Shale feeding is through

Reclaimed or Pay Loader.

RAW MILL

Two close circuits two chamber Ball Mills are performing the grinding of limestone and

Additive mix. Raw Mill is a tube construction of thick MS plate with steel lines and

49

compartments are separated by diaphragm for improving the retention time and transfer of

materials in second for further grinding. Mill is charged with hyper steel balls. Raw material is

first fed to Tertiary Crusher (Single Rotor Reversible Impact Crusher) which reduces the size of

Mix. After crushing the mix the material is fed to Ball Mill where fine grinding takes place. The

finer product is separated by Air Separator and is fed to the blending silos and the coarse

material is fed back to the Mill Inlet.

VERTICAL ROLLER MILL (VRM)

In VRM Section the material is directly fed into Mill through the feed belt for grinding. The

ground material is stored in continuous flow silos from where it is fed to the Kiln. VRM utilizes

hot air from the kiln exhaust for drying the Raw Mix

Deputy Manager – VRM, who reports to Manager (Maintenance), coordinates the

departmental activities

KILN DEPARTMENT

Kiln Department functions are categorized under two heads, Manager (Maintenance) is

responsible for the maintenance of all equipment and Manager (Production) is responsible

for the Clinker Production and its quality parameters. Gagal Cement Work has two rotary kilns.

Kiln no 1 is having 3 streams coupled with 2 four stage and 1 five stage preheater with 2

precalciners, DDF and MFC. Kilns No 2 are having twin stream 5 stage preheater with

precalciners. Pulverized coal is used as a fuel for calcination. The Clinker is discharged to

horizontal grate cooler and is stored either in Silos or in stockpiles.

CEMENT MILLS DEPARTMENT

The basic function of the department is to grind the required ratio of clinker and gypsum in the

manufacture of OPC and clinker, Gypsum and CCP/fly ash for the manufacture of PPC with

the help of 4 ball Mills for cement grinding.

PRE GRINDING UNIT

Roller Press is the pre-grinding unit for Cement Mills 1 & 2. In Roller Press two rollers are

arranged in horizontal fashion. One is fixed and other has a hydraulic thrust arrangement for

horizontal movement. The clinker is fed vertically down ward between the rollers and gets

50

crushed by the hydraulic pressure arrangement The product, which is in flakes, is fed to the Ball

Mill with other additives for finished grinding.

FINISHED GRINDING

Finished grinding is performed in Ball Mills. Ball Mill is a rotating shell divided into two

chambers fitted with shell liners for shell protection and charged with grinding media to the

required volume. The impact and friction between the grinding media and material perform

grinding. Out put from the ball Mills is fed to the dynamic separator where the course and fines

of specific sizes are separated. The course is again conveyed to the Ball Mill for further grinding.

The fines are conveyed to cement silos through a series of elevators and air slides. In order to get

the desired specific surface for cement the RPM of separator is varied accordingly?

The departmental activities are coordinated by Dy. Manager-Plant who reports to

Manager (Maintenance).

ELCTRICAL AND INSTRUMENTATION (E & I) DEPARTMENT

The primary function of the E & I department is to maintain all E & I equipment in the plant to

provide the necessary service to ensure the smooth operation of all E 8 & I equipment.

ELECTRICAL

Electrical equipment mainly comprising transformers, HT/LT motors, DC Motors, switch gears,

power distributor system and factory and residential colony lighting

Besides the above E & I department is also responsible for the maintenance if the electrical

installations of the colony. The department CO-ordinates with the other relevant departments for

proper utilization of the Grid & DG power.

INSTRUMENTATION

Instrumentation system can be effectively termed as the nervous system of the plant. With the

recent advanced in technology instrumentation has become one of the most important aspect of

cement manufacturing industry. Almost all the monitoring and controlling parameters are now

available I the Central Control Room (CCR) for operators to run the plant efficiently. Accuracy

and degree of control has increased manifold due to the latest instrumentation control systems.

51

Dy. Manager (Electrical) and Dy. Manager (Instrumentation) report to Manager (E & I) for

electrical and instrumentation activities.

WORK SHOP

Following activities are carried out in the workshop department:

1. Departmental maintenance Activities

2. Maintenance of Gear Boxes

3. Compressors & PD Blowers

4. Water Pumps

5. Various equipment at Rambagh Pump House, Filter and Sewage Water Treatment plants.

The departmental activities are coordinated by Dy. Manager (Plant) who reports to Manager

(Maintenance).

COMMERCIAL DEPARTMENT

Procurement Section: This section looks after that equipment, tools and other requisite items are

made available to different departments in time. Deputy Manager-Purchase who reports to Sr.

Manager-Commercial coordinates the departmental activities.

Packing House Department: Packing plant is the place where cement is packed & dispatched to

various locations. Gagal Cement Works packing department has six silos with total storage

capacity of 35200 tonnes. There are three Rotary Packer in Gagal I packing plant with a

capacity of 100m TPH each and two electronic rotary packers in Gagal II packing pant with a

capacity of 180 TPM each. All the packers have truck-loading facility because the cement

form Gagal works to different locations by road.

The various varieties of cement handled are:

33 Grade Ordinary Portland cement (OPC)

43 Grade Ordinary Portland cement (OPC)

PPC (Portland Pozzolona Cement)

52

Assistant Manager-Plant reports to Manager Commercial for Packing Plant Activities.

Cement Dispatch Section:

Cement dispatch section receives dispatch instruction for Regional Marketing Office,

Chandigarh and also from Shimla. The trucks registered with authorized transporters enter the

factory gate with Loading Advice cum gate Pass. The Truck’s Gross weight is taken at the Exit

Gate by electronic weighbridge and finally an Excise Invoice is issued to the truck driver.

The departmental head reports to Manager Commercial.

THE CIVIL DEPARTMENT

In cement industry the maintenance and applications of Refractories in kiln and its auxiliary units

are one of the most important job. It is the refractory, which is subject to all sort of, processes

and operational conditions like high temperature, abrasion, alkalis, chemicals, thermal shocks,

mechanical shocks etc. And protects the metallic body of the units. Due to this fact a strict

adherence with the quality of the refractory at every step from receipt to its application is of

paramount importance. In the organization the civil department does the complete dealing with

the refractory and is also responsible for all civil related jobs in the factory and colony.

Deputy Manager-Civil who reports to Manager-Maintenance coordinates the

departmental activities.

MAINTENANCE INSPECTION PLANNING & SYSTEMS (MIPS)

As the name suggests the main function of the department is preparing and planning for carrying

out various inspection, maintenance job and top record and update the inspection results.

Inspection/Maintenance planning is based upon the diagnosis of change in behavior pattern of

sound, temperature, heat, vibration, viscosity etc.

MIPS department also coordinates in planning the maintenance activities of various departments

so as to get optimum utilization of stoppage duration. MIPS also carries out the down tile

analysis of main equipment.

53

GENERAL STORES

The general stores are the department which is involved in making the balanced and timely flow

of materials, spares, tools and equipment. General Stores also arranges for the disposal of the

scrap and unwanted materials.

Deputy Manager who reports to Works Manager coordinates the activities of the

department.

ISD (INFORMATION SYSTEM DEPARTMENT)

STRUCTURE OF ISD

This department has the following structure of operation.

Information System Department is looking after the Plant’s complete IT

infrastructure in various manners to keep it up for smooth running of different

departments operation. It works on ITIL process to keep industry standard.

Servers part consist of Users logon information, Mail services, Internet Services

& Central Storage location. The details of the servers are in next pages.

ISD

IT Infrastructure

Reporting

Desktops

Printers Networking

Servers

54

Desktop part consists of Local PC’s available with each computer users

connected on the network. It consists of different part like CPU, Monitor,

Keyboard and Mouse.

Printer’s part consists of all the different types of Printers used in different

departments for taking out various types of reports. The Types of printers are Dot

Matrix Printers, Line Matrix Printer, Laser Printer and DeskJet Printers.

Networking part consists of Local Area Network which includes Optic Fiber

Cable, CAT5 Cable, Layer 3 & 2 Switches and Ethernet cards. The details are in

next pages.

Reporting part consist of various types of Department reports which reflects proper working of

the department. Such kinds of reports are Daily Report, Weekly report, Monthly report etc.

Intra-plant Connectivity

All plants, RMOs, Head Office is connected through INSAT- 3B services provided by TataNet.

Connectivity to the external World is through IIS, Head Office.

SALES DEPARTMENT

Introduction:

Sales department plays a major role in the working of any organization as for all-purpose,

product is produced, which is stored, and distributed to dealers/retailers through Sales and

Marketing finance department. They make dealers , retailers and sold their product in the

market with control and maintain to optimum sales for smooth operations. As such the Sales

and Marketing Department in Gaggal cement works is looking after only some of the aspects

55

like payment for rawmaterial purchased, cost control and insurance aspects of the unit. All

receipts for cement sold is received by Regional office at Chandigarh and fund financed by unit

for different payment from its R.O.

Hierarchy of the Sales & Marketing Department:

It is a line organization having a full-fledged department to manage the Sales, Marketing and

other matter of this department. The ACC Gagal cement works president has to manage Sales

and Marketing Department.

RESEARCH METHODOLOGY :-

TYPES OF RESEARCH

56

1 Descriptive research

2 Analytical research

3 Qualitative research

4 Quantitative research

DESCRIPTIVE OR EX-POST FACT RESEARCH:-

To conduct the research work accurately, we conducted the descriptive research. It includes

surveys & fact-finding inequity of different kinds.

ANALYTICAL RESEARCH:

In it we have to use the fact & information already available & analyses of these to make an

evaluation of project.

QUALITATIVE RESEARCH:-

In selecting the appropriate research design of the study & the type of data needed, the choice of

data collection techniques is four grouped.

It is done for:-

1 Consumer needs.

2 Consumer’s preferences for brand.

3 In depth under standing of consumers.

4 Availability for consumer.

QUANTITATIVE RESEARCH:-

Quantitative research is obtained to rate the different aspects on parameter i.e. image of brand,

brand equity, expectation of customers, awareness among customer for scheme, switch ability of

customers etc.

METHODOLOGY:-

57

The project include both primary & secondary source of data. The data collected through these

sources has organized, analyzed & interpret so as to draw conclusion &to arrive at appropriate

recommendations.

1. A primary source of data includes the personal interview from various retailers in the

enterprise ( area Palampur).

2. The secondary sources of data include annual report, website of ACC Ltd. Company which

contains the details which is helpful for making my project report.

STEPS IN RESEARCH METHODOLOGY:-

1. COLLECTION OR DATA

2. ORGANISATION F DATA

3. PRESENTATION OF DATA

4. ANALYSIS OF DATA

5. INTERPRETATION OF DATA

1. COLLECTION OF DATA:-

Both the primary & secondary data has been collected from the market & company. The

company provided the secondary data & primary data is collected through the medium of face-

to-face interaction & interview from various Retailers in the filed area of Palampur.

2. ORGANISATION OF DATA :

Data once collected the further processing is done, the data collected by me are carefully done

through in a useful & relevant manner &properly organized.

3. PRESENTATION OF DATA:-

58

The data collection is of no use unless & until it is given in the presentable form. Thus after

proper organization the data is given in presentable form with the complete details, with the help

of bar diagram, pie charts etc.

4. ANALYSIS OF DATA:-

The data is carefully analyzed keeping in the consideration both the pros & cons for the purpose

of arriving at concrete conclusion.

5. INTERPRETATION OF DATA:-

After carefully analyzed the data, it has been aptly interpreted in order to give concrete

conclusion & proper recommendation.

ANALYTICAL TOOLS

RATIO ANALYSIS

MEANING OF RATIO:-

Ratio analysis is one of the most powerful tools of financial analysis. It is the process of

establishing and interpreting various ratios. It is the help of ratios that the financials statements

can be analyzed more clearly and decisions made from such analysis.

USE OF RATIOS:-

The use of ratio analysis is not confined to financial manager only. There are different parties

interested in the ratio analysis for knowing the financial position of firm for different purposes.

In view of various users of ratios, there are many types of ratios which can be calculated from

the information given in the financial statements. The particular purpose of user determines the

particular ratios that might be used for financial analysis.

RATIO ANALYSIS OF ACC:-

ANALYSIS OF SHORT TERM FINANCIAL POSITION OR TEST OF LIQUIDITY:

59

The short term creditors of the company like suppliers of goods of credit and

commercial banks providing short term loans are primarily interested to knowing the

company`s ability to meets its current or short term obligations as and when those

become due. The short term obligation of a firm can be met only when there are

sufficient liquid assets. Therefore a firm must ensure that it does not suffer from lack of

liquidity or there capacity to pay its current obligations. If a firm fails to meet such

current obligations due to lack of good liquidity position, its goodwill in the market is

likely to be affected beyond repair. It will result in a loss of creditor`s confidence in a

firm may causes even closure of the firm. Even a very high degree of liquidity is not is

not good for a firm because such a situation represents unnecessarily excessive funds of

the firm being tied-up in current assets. Therefore, it is a very important to proper

balance in regards to the liquidity of the firm.

COMMENTS ON FINANCIAL POSITION OF THE ACC WITH THE HELP OF RATIOS:

SHORT TERM FINANCIAL POSITION:-

LIQUIDITY RATIOS:

CURRENT RATIO:-

CURRENT RATIO=CURRENT ASSETS/CURRENT LIABILITIES

CURRENT ASSETS =2735.20Cr.

CURRENT LIABILITIES = 2741.29Cr.

CURRENT RATIO = 1:1( approx)

INTERPRETATION OF CURRENT RATIO:

Current Ratio is an indicator of the firm’s liquidity and its ability to pay its current obligations in

time when they become due. As a convention the minimum of ‘two to one ratio’ is referred

to as a banker’s rule of thumb. Current Ratio of ACC Ltd. is 1:1. it is matter of concern. As a

manufacturing concern there is more investment in the capital goods but current assets also to

60

be increased accordingly to improve the current ratio. A business with heavy investment in fixed

assets may be successful even the ratio is low.

QUICK RATIO:-

QUICK RATIO=QUICK ASSETS/CURRENT LIABILITIES

QUICK ASSETS=Cash in Hand and in bank+ B/R + Sundry Debtors + Marketable Securities+

temporary Investments

QUICK ASSETS = 1349.33Cr.

CURRENT LIABILITIES = 2741.29Cr.

QUICK RATIO = 0.50:1

INTERPRETATION OF QUICK RATIO:

Usually, a high acid test ratio is an introduction that the firm is liquid and has the ability to meet

its current or liquid liabilities in time and on the other hand a low quick ratio represents that

the firm’s liquidity position is not good.

As a rule of thumb quick ratio of 1:1 is considered satisfactory. But quick ratio of ACC Ltd. is

0.50:1 it is low, company should take necessary steps to improve this.

ABSOLUTE LIQUID RATIO:

ABSOLUTE QUICK RATIO = ABSOLUTE LIQUID ASSETS/

/CURRENT ASSETSOR

= CASH & BANK + SHORT TERM SEC./CURRENT ASSETS

LIQUID ASSETS = 991.48Cr

CURRENT ASSETS = 2741.29Cr.

ABSOLUTE LIQUID RATIO = 0.361:1

61

INTERPRETATION OF ABSOLUTE QUICK RATIO:

Absolute quick ratio is also important tool. It shows the relation of absolute liquid assets with

current liabilities. Rule of thumb for this ratio is 1:2. In regards of ACC Ltd this ratio is quite low

high. Management should gave attention in this context.

CURRENT ASSETS MOVEMENT OR EFFICIENCY/ACTIVITY RATIO:

INVENTORY TURNOVER RATIO:

INVENTORY TURNOVER RATIO = NET SALES /AVG. STOCK AT COST

NET SALES = 7,308.62Cr.

AVG. STOCK = 762.06

INVENTORY TURNOVER RATIO = 9.6times

INTERPRETATION OF INVENTORY TURNOVER RATIO:

Inventory turnover ratio is concerned with the maintenance of level of inventory of finished

goods so as to be able to meet the requirements of the business. Level of inventory should neither

be too high nor too low. Inventory turnover ratio indicates the number of time the stock has been

turned over during the period. In the context of ACC Ltd. is manufacturing company the

inventory turnover ratio is good and shows their good efficiency to manage their inventory.

Inventory Conversion Period=Days in year/InventoryTurnover Ratio

= 365/9.6

= 38.02 days OR 38 days

INTERPRETATION OF INVENTORY CONVERSION PERIOD:

62

This shows the time taken to clear the stocks. Stock of the company cleared more than five times

in the year. It shows their good management of the stores. This is good as a manufacturing

concern.

DEBTORS TURNOVER RATIO:

DEBTORS TURNOVER RATIO= NET CREDIT ANNUAL SALES

OR ANNUAL TOTAL SALES/

AVERAGE TRADE DEBTORS

TOTAL SALES = 7308.62Cr.

AVG. DEBTORS = 299.73Cr.

DEBTORS TURNOVER RATIO = 24.38times.

INTERPRETATION OF DEBTOR TURNOVER RATIO:

Debtor Turnover Ratio indicates the number of times the debtors are turned over during a year.

Debtors turnover ratio of ACC Ltd. is higher it shows more efficient management of debtors.

AVERAGE COLLECTION PERIOD = NO.OF WORKING DAYS/

DEBTORS TURNOVE RRATIO

= 365/24.98

= 14.9 Days or 15 days

INTERPRETATION OF AVERAGE COLLECTION PERIOD RATIO:

The average collection period ratio represents the average number of days for which a firm has to

wait before its receivables are converted into cash. Average collection period of the ACC Ltd.

shows their efficiency for debt collection and shows their credit terms & policy towards debtors.

CREDITORS TURNOVER RATIO:

63

CREDITOR TURNOVER RATIO = NET CREDIT ANNUAL

PURCHASE/

AVG. TRADE CREDITOR

NET CREDIT ANNUAL PURCHASES = 1473.37Cr

AVERAGE TRADE CREDIRORS = 1422.80Cr

CREDITORS TURNOVER RATIO = 13.165 times

INTERPRETATION OF CREDITOR TIRNOVER RATIO:

Creditor Turnover Ratio shows the relation between credits purchase and average creditors. It

indicates the number of times; creditors are turnover during higher. In context of ACC creditor

turnover ratio shows good management of creditors.

Average Payment Period Ratio = No. of days/Creditors Turnover Ratio

= 365/13.165

= 27.72days

INTERPRETATION OF AVERAGE PAYMENT PERIOD RATIO:

The average payment period ratio represents the average number of days taken by the firm to pay

its creditors. The payment period of the is less. It shows that the company enjoys the benefit of

the discount facilities.

ANALYSIS OF LONG TERM FINANCIAL POSITION OR SOLVENCY:

The term solvency refers to the ability of a concern to meet its long term obligation. The long

term indebtedness of a firm include debentures holders, financial institution providing medium

and long term loans and other creditors selling goods on installment basis. Long term solvency

ratios indicate a firm ability to meet the fixed the interest and costs and repayments schedule

associated with its long term borrowings.

64

(1). DEBT EQUITY RATIO:

Debt Equity Ratio = Outside Funds/Shareholders Fund

Outsiders Funds = 482.03Cr.

Shareholders Funds = 4927.73 Cr..

Therefore Debt Equity RATIO = 0.10:1

INTERPRETATION OF DEBT EQUITY RATIO:

This ratio calculated to measure the extend to which debt financial has been used in business.

Being a manufacturing concern there is more investment in the capital goods. Lower of ratio

gives the higher margin of safety. There is no standard norm or rule of thumb regarding the ratio.

It depends upon the policy of the company. There no much more risk in the companies operation.

Therefore they rely on the shareholders funds.

(2).FUNDED DEBT TO TOTAL CAPITALISATION RATIO:

FUNDED DEBT TO TOTAL CAPITALISATION RATIO=

FUNDED DEBT / TOTAL CAPITALISATION X 100

= 785.98/4927.73 X 100

= 25%

INTERPRETATION OF FUNDED DEBT TO TOTAL CAPITALISATION RATIO:

Though there is no rule of thumb but still lesser the reliance on outsiders the better it will be

ACC Ltd. can raise funds from the outside sources as there is enough scope.

(3).PROPREITORY OR EQUITY RATIO:

PROPREITORY OR EQUITY RATIO=SHAREHOLDERS FUNDS/TOTAL ASSETS X 100

65

SHAREHOLDER FUNDS = 4927.73 Cr..

TOTAL ASSETS = 5,745.55 Cr.

PROPREITORY OR EQUITY RATIO=85.7%

INTERPRETATION OF PROPREITORY OR EQUITY RATIO:

As equity ratio represents the relationship of owners fund to total assets. In ACC Ltd. there is

high ratio it indicates better is long term solvency of the company.

EARNING PER SHARE:

Earnings per Share - [EPS] 2008

(I) Net Profit as per Profit and Loss Account ........................Rs.1,212.79 Cr.

Adjustment for the purpose of Diluted EPS……………………

Interest on Foreign Currency Convertible Bonds ……………..

Less: Tax on above ………………………………………….

Profit for Diluted Earnings per Share .....................................Rs. 1,212.79Cr.

(II) Weighted average number of equity shares for Earnings per Share computation

Shares for Basic Earnings per Share .............................Rs.18,76,45,744Cr.

Add: Potential equity shares on exercise of option of ESOS…. Rs.2,83,742Cr.

Number of Shares for Diluted Earnings per Share .......... Rs.18,79,29,486Cr.

(III) Earnings per Share (Weighted Average)

Basic .................................................................... Rs.64.63

Diluted ..................................................................Rs.64.53

LIMITATIONS OF THE STUDY

Except the supreme power, the Almighty, no one is impeccable and prowess enough to

accomplish anything without any faults and limitations. A research is no exception. No study is

devoid of certain shortcomings. Some problems encountered in this study are under mentioned:

66

Some officers were too busy to give a sincere response to investigators & hence

their response may not relate to real picture.

Manager some time denied disclosing some important financial matters, which

can be helpful in this study.

The time period given to me for the completion of the project was short in such a

short span of time it is difficult to complete any project in detail.

Some information related to the study, which had been collected from the

company was rounded off because of some influence.

FINDINGS :

The area of my operation was to collect data from the Palampur Sub-Division of Distt. Kangra,

H.P. I have visited 30 Dealers of Cements in the area . The details are as under :

Sr. No. Name of Company

1 ACC Cements Ltd.

2. Ambuja Cements Ltd.

3. J.P. Cements Ltd.

4. UltraTech Cements Ltd.

5. J.K. Cements etc.

No. of Counters of Each Cements Company in the Area :

Sr. Name of Company No. of

67

No. Dealers/Retailers

1 ACC Cements Ltd. 14

2. Ambuja Cements 9

3. Jay Pee Cements 5

Others 2

No of Retailers of Cements in Palampur Area No. of Retailers

02468

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No of Retailers ofCements inPalampur AreaNo. of Retailers

Total No. of Dealers in the area of survey was :

ACC Cements + Ambuja Cements + JP Cements + Others = Total

68

14 + 9 + 5 + 2 = 30

The market captured by the three major operators is through its 28 Dealers of is as under :

1. ACC Cements Market Share ( In the field area of Palampur):

Total Sales ( 14 Retailers) / 14 = Average Sales

Total Sales Per Month : 21250 Bags

(3500+1250+3500+3500+1250+1250+1250+250+1250+1250+1250+1250+250+250 = 21250)

Average Sales (P.M.) :

21250 / 14 = 1518 Bags Per Month ( Apprx.)

Market Share Calculated :

Average Sales of the Product ÷ Total Sales of Three Products X 100

1518 / 3923 X 100 = 38.69 % Or Say 39%

2. Ambuja Cements Ltd. Market Share ( In the field area of Palampur):

Total Sales / 9 = Average Sales

Total Sales Per Month : 11750 Bags

(3500 + 1250 +1250 + 250 + 1250 + 3500 +250 +250 +250 = 11750 )

Average Sales (P.M.) :

11750 / 9 = 1305 Bags Per Month ( Apprx.)

69

Market Share Calculated :

Average Sales of the Product ÷ Total Sales of Three Products X 100

1305 / 3923 X 100 = 33.26 %

3. JP Cements Market Share ( In the field area of Palampur):

Total Sales / 5 = Average Sales

Total Sales Per Month : 5500 Bags

( 250 + 1250 + 250 + 250 + 3500 = 5500)

Average Sales (P.M.) :

5500 / 5 = 1100 Bags Per Month ( Apprx.)

Market Share Calculated :

Average Sales of the Product ÷ Total Sales of Three Products X 100

1100 / 3923 X 100 = 28.03 %

Graphical Representation of Cement Companies market in Palampur

Area

70

Market Share of Three major Cements Copanies in Palampur Area Market Captured

ACC Cements

Ltd.39%

Ambuja Cements

Ltd.33%

JP Cements Ltd.28%

ACC CementsLtd.

Ambuja CementsLtd.

JP Cements Ltd.

DATA COLLECTION

Data Sources:

There are two types of data were taken into consideration i.e. Secondary data and primary data.

The secondary data has been used to make the analysis because we have no much sufficient time

and resources to collect the primary data.

Secondary Data:

Secondary data is that data which is collected for other purpose. This is indirect collection of

data from sources containing past or recent past information like annual reports, balance sheet,

books, newspapers and magazines etc.

Collecting the Information:

71

For this research methodology, I have collected data from the market area of Palampur Sub-

Division of District Kangra, H.P. and with the help of annual reports, balance sheets and other

company’s publications.

Analyse The Information:

In this research methodology the next step is to extract the pertinent finding from the collected

data. We tabulated this collected data and develop the means of analyzing the data. There are so

many tools for financial analysis but we mainly concentrate on the RATIO Analysis and

supportive information taken from the other means i.e. comparative financial statements with its

major components viz. common size statement, comparative financial statement.

FINANCIAL SWOT ANALYSIS

Strengths:

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

and concrete. ACC is huge company with an annual cement capacity of over

18 million tones. ACC's operations are spread throughout the

country with 14 modern cement factories, more than 30 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.

ACC's research and development facility has a unique track

record of innovative research, product development and

specialized consultancy services.

Acquisition by HOLCIM (world leading cement producing industry) had

strengthened ACC in much aspect.

Cost Competitive

Well Developed Industry with Strong Manufacturing Base

72

Annual turnover for the year 2008-09 is 7,308.62 Crores and profit is

1,687.74 Crores.

Access to pool of highly trained scientists, both in India and abroad.

Strong marketing and Distribution Network.

WEAKNESS

Wages and salaries of employees given by ACC is quite low as in comparison to

other competitors

The current ratio for the year 2008-09 is 1:1 which should be 2:1.

The short term liquidity ratio for the year 2006-07 is 0.50:1 which should be

1:1.

SAP system is not installed perfectly.

Low Investment in innovative R&D.

Lack of culture of innovation in industry.

High employee turnover rate.

Company is not concentrating on segmentations.

OPPORTUNITIES

Significant Export Potential.

Increase in demand of cement and it is expected to grow about 9% to 10%.

Cement industry witnessed growth of 11.3% 1n 2009 against 9.4% in 2005.

Rapid growth in housing infrastructure and real estate sector and ambitious plan

for the developing Special Economic Zone (SEZ), the cement industry is

expected to enjoy double digit growth.

HOLCIM (World leader in Cement Industry) had acquired 34.61% of equity

shares of ACC LIMITED. The group has its headquarters in Switzerland with

worldwide operations spread across more than 70 countries. ACC have good

prospect of growth under the supervision of HOLCIM

Implementation of SAP system in ACC had connected each and every unit to

each other and with the head quarter in Mumbai.

THREATS

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Increase in competition in cement industries.

Increase in cost particularly of energy, transport and other inputs.

The ministry of coal is supplying 80 % of total requirement of the cement

industry through Fuel Agreements (FSAs). While cement plants may have to

procure through other channels.

Some state governments are also imposing taxes and duties on these captive

power plants.

Grasim cement and J.K cement both have opened there production unit in

Himachal Pradesh

Other cement industries are giving higher salary to there employees so there is

possibility of employee turnover.

RECOMMENDATIONS\SUGGESTIONS

Company is not utilizing its resources up to the maximum

Customer base remains the same

SAP is not implemented properly as the employees are not trained to use the

same

Company is not looking for increase in the plant capacity.

Implementation of new policies by Holcim is disturbing the workforce in

adapting to the new work-culture.

The company is more dependent on outsider’s fund.

Current Ratio is 1:1. Company needs bit improvement in it so that to make it 2:1.

Long term financial policy is not as good as it should be. No doubt company

adopted very nice policy of financing fixed assets from the long term fixed assets

and the long term liabilities. Rest payment is made in cash, thereby leading to

reduction of the amount of cash.

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The short term financial position of the company is not good enough. Current

Assets of the company in the year 2008 is Rs.2735.20Cr where as the Current

Liabilities is Rs.2741.29Cr.

High employee turnover rate. The other cement industries are paying good

salaries to employees as compare to ACC LIMITED that is why employees are

leaving the company.

POLICY IMPLICATIONS

Some suggestions that I have given to the company and following are the result of those

suggestions are as follows;

I suggest them to increase the promotion of Health and Safety at Work, including

the prevention of occupational risks and it is in the process.

I suggest them to increase the capacity of plant as it a long term process so

company officials said they put that point in the annual board meeting so it is in

the process.

Current Ratio of the company is 1:1.so I suggest them to increase that to 2:1 and

they are working upon it.

Company is not spending so much on the R& D so I suggest them to increase the same and the

company said that they will think to allocate more finance in the budget of the company.

Conclusion :

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After the survey of ACC Cements in markets and inputs from the

dealers/retailers it is found that the ACC Cement capture the more market as compare to the

other brand because of quality and quantity of this cement is so good . Customers are satisfied

with it. The pricing of ACC is more than other cement brands in the market but it does not affect

its sales due to its brand image and trust in the customers. And the dealers as well as customers

are very happy to use this product and assured that they will promote the product in future

also.The others brands are working in clusters their sale comes from some specified clusters due

to their incentive policies to particular dealers. But the sales of ACC Cements is found all the

areas visited to a satisfactory level.

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Bibliography :

1. Internet for the ACC Cements main website for its history and other information.

(www.acclimited.com)

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