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CONTENTS

1. INTRODUCTION TO PROJECT

2. CEMENT – PRODUCT HISTORY

3. CEMENT INDUSTRY

4. THE ASSOCIATED CEMENT COMPANIES LTD

5. FIRM PROFILE (SRI SHABAREESH AGENCIES)

6. SURVEY FINDINGS

7. SUGGESTIONS AND CONCLUSION

Annexure

o Questionnaire

o Bibliography

1
CHAPTER – 1

INTRODUCTION TO PROJECT

 INTRODUCTION

 AIMS AND OBJECTIVE

 SCOPE OF THE STUDY

 METHODOLOGY

 LIMITATIONS

2
CHAPTER – 1

INTRODUCTION

Indian Marketing Environment is largely described as


sellers market. We have chronic shortages and scarcities
particularly in convenience goods. Demand is invariably
greater than supply. Purchase power do masses is limited
more than 30% of our population have income below poverty
line bulk of our population resides in villages and marketers
have yet to capitalize rural marketing opportunities. The
consumers are ignorant, illiterate, unorganized and hence they
have weak bargaining power. Most of our business enterprises
are still having selling concept, which is product oriented
marketing approach. Bigger business houses having national
markets are adopting integrated corporate planning and
market planning as well as strategic market programmes.

Marketing Research and information as well as strategic


marketing planning have very limited scope at present. A
change is taking place in the marketing environment at a
reasonable speed and many consumer oriented marketing
companies are beginning to realize the pressure of competition
and buyer’s market.

But the transaction to marketing orientation is a long


and difficult process. Marketing research has a bright future
in the feature of matured economy.

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Marketers are caked upon to anticipate changes in the
marketing environment involving opportunities risks and
uncertainties. They are regained to forecast the direction and
intensity of there future change plant to meet anticipated
changes in the environment and secure favorable relationship
with the changing environment. To do there intelligent
planning marketers need information. Accurate sales
forecasting involves collection and processing of information.
We can have more accurate and reliable sales forecast,
marketing plans and programmes through organized
information system. We should have profitable marketing
activities, minimum risks and uncertainties.

This project report offers detailed regarding marketing of


Cement in general and marketing performance and marketing
share of ASSOCIATED CEMENT COMPANIES LTD., [ACC]. It
also deals with a case study of SRI SHABAREESH AGENCIES,
SHIMOGA, reference have been made to marketing of other
Cements also so as to bring out comparative cements.

In the modern world Cement has gained so much


recognition that no building is built without Cement. It is
deemed to be the best and only construction material at
present. Even though cement is used by almost every man he
does not know much about it.
This project report attempts to bring about details
regarding history, manufacturing process, types of cement
available, problems in marketing if cement and other details
regarding cement. Efforts have also been made to get the

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opinion of dealers regarding marketing and other aspects of
Cement etc., and consumer’s opinion regarding ACC Cement.

Attempts have also been made to assess the marketing


performance of SRI SHABAREESH AGENCIES and certain
suggestions have also been given for improvement of marketing
strategy by adopting suitable marketing programmes.

AIMS AND OBJECTIVE

1. To know about the process of manufacturing cement.

2. To know about the raw materials used in the process.

3. To analyze the sales performance of Acc cement in


General.

4. To analyze the sales performance of Cement by SRI


SHABAREESH AGENCIES.

5. To assess marketing strategy adopted by SRI


SHABAREESH AGENCIES.

6. To analyze the general problems in marketing of cements


and specific problems confronted by SRI SHABAREESH
AGENCIES.

7. To know consumer preference towards various brands of


cement especially towards ACC Cement.

8. To give specific suggestions for improvement pf


marketing strategy of SRI SHABAREESH AGENCIES.

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SCOPE OF THE STUDY

The scope of this report is restricted to the study of


consumer preference and Dealers opinion regarding marketing
of ACC Cement in Shimoga City.

This report includes the efforts that have been taken up


by the “ASSOCIATED CEMENT COMPANIES LIMITED” to
improve the quality and sales and also the efforts that have
been taken up by SRI SHABAREESH AGENCIES” to increase
the sales of ACC cement in Shimoga city.

METHODOLOGY

The Method adopted to conduct this study may be


classified into 2 types. The information has been gathered
through two sources.

1. Primary data.
2. Secondary data.

The primary data has been collected through personal


interview and by observation. It has been collected directly
from the Firm Proprietor’s information are collected by
observational methods. Sources of Secondary data like News
papers, Magazines, Books, Internet helped a lot in preparing
this case study.

6
LIMITATIONS

Since Cement is used only in the process of construction.


It is rather difficult to get respondent everywhere. It is also
difficult to known the opinion of respondences each and every
one will have qualitative knowledge about Cement.

There are channel of respondent issues being this chance


whether it may be a wrong or right this; may create a bias in
response. However it has been avoided as for as possible.

The scope of study reconfirmed to shimoga only. The


reference has been drawn with the help of opinion of both
consumer’s and dealers of Shimoga town. There may be
channel of inference becoming unsuitable in, such marketing
environments which have completely a different set up of
marketing friend’s.

As Cement is a product confirmed to person who are


involved in the process of construction. It is very difficult to
get information for every one.

Even though it is difficult all attempts as have been made


and necessary precisions have been taken to award bias and
get answer to make the report a relative one.

7
CHAPTER – 2

CEMENT – PRODUCT HISTORY

 INTRODUCTION

 PORTLAND CEMENT

 USE OF PORTLAND CEMENT

 PRODUCT HISTORY

 PRODUCTION OF CEMENT

 MODERN PROCESS OF MANUFACTURING CEMENT

 THE MODERN PROCESS

 TYPES OF CEMENT AVAILABLE

 STORAGE OF CEMENT

8
CHAPTER – 2

CEMENT – PRODUCT HISTORY

INTRODUCTION [Origin of the word Cement]

The word “CEMENT” is from the Swan “to cut” and


originally had reference to store cuttings used in lime mortar.
Then it is logical that in to middle age of the substances known
as “MORTAR” which is now used to the word was commonly
called as “CEMENT”. In correct modern age, cement generally
mean the substances which binds the stones or bricks with
which are built and term may be used with respect to any
materials serving such a purpose.

PORTLAND CEMENT

Port land Cement is a finely ground powder, usually grey


which when mixed with water hardens and develops strength
primarily because of a large content of hydrous calcium
Silicates. There and other constitutes react chemically with
the water by hydration and hydrolysis. The most common raw
materials are lime stone and clay or shell. It is produced by
burning at high temperature materials containing lime,
alumina, iron and silica in predetermined proportion to given
the desired and properties.

Normally, Gypsum or its derivatives are added during


grinding stage for set control. Portland cements with special

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properties are produced by varying the oxide composition and
also by adding small amounts of chemicals agents at the
clinker grinding stage or later. When mixed with water alone
to form hard mass. Early investigators advanced divergent
theories as to why Portland cement forms a rigid strong
coherent mass when it reacts with water. It has since been
established that a colloidal of high internal surface area is
formed. Whatever the extent of direct chemical continuity, it is
apparent that the large internal surface forces may also be
involved.

USE OF PORTLAND CEMENT

A mixture of cement and water is called neat cement


paste, whether fresh or hardens. In some grunting operations,
including oil well cementing, the paste is used as such.
Generally however, it constitute two hardening ingredient in
mortar or concrete. This use of sand and stone filler called
aggregate is an economy and also reduces shrinkage. Another
use Portland cement is in soil cement mixtures used as
pavement base. Portland cement is also mixed with asbestos
fiber and water and processed to make special products. Like
organize plastics it derives much of its utility from the fact that
it is readily cost or molded into shape. Concrete is used,
extensively for shielding against nuclear radiation. It is used
around reactor and partial accelerators and for construction of
radiation shelters. Sometimes special, heavy aggregates are
used to reduce required thickness.

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PRODUCT HISTORY

The origin of cement dates back to the earlier centuries.


The first people to use the materials for binding were the
Egyptians. The Egyptians used impure Gypsum plaster as
mortar in constructing the famous pyramids once of the seven
wonders of the world. Greeks used slacked lime for the
purposes of construction. The Roman learned the use or the
utility of the binding materials from Egyptians and Greeks.
The Romans and Greek made a pozzolanic mortar by mixing
finely ground volcanic material with lime. The word
“Pozzoland” is derived from the word “pozzuoli”, name of a
place in Italy.

The Romans used powdered pottery fragments as


possalana or binding materials. The pozzolanic cements as
they were called were made by mixing the volcanic stuff and
powdered pottery fragments with lime and water. This mixture
was found to have the resistance needed for exposing to water
and air for a long times. At that time there were the only
mixture or cement as thus are called were suitable for any type
of exposure. Such cements are used to constructing the
famous structures as the Roman Pantheon and coliseum.

The middle ages the quality of mortar declined. It was


commonly a sand-mortar lime mixture. The decline in the
quality of the mortar was the insufficient burning of lime.

It was in the 17th century that the actual compositions by


cement began to get its shape. In 1756 when John Smeaton

11
was commissioned to rebuild the Eddy stone light house off
the Cornwall port, in England.

At that time lime pozzalana was the only recognized


material for under water construction. But he was not satisfied
with the mixture semitone. Experimented with lime and he
found that clay constituted a considerable part of lime. He is
thus credited as the first person to find the constituents of the
hydraulic lime.

In 1796 James parker of England, patented a hard


burned impure lime. He used it as the binding material. It did
not slake (absorb water and crumble) when it was exposed to
water or air. He called it as the “Roman Cement”. But this
type if cements required as they were in the form of crystals.
This cement was the basis on which the “National Cement” as
it was called was produced in the 1820’s. But the only
difference was the Natural Cement was the mixture of hard
burned impure lime and cement rock. A type of rock which
was available in U.S.A. thus the foundation for the cement
Industry was laid.

In 1824, a process of making cement was patented by


Joseph Apsdin in England. He named the cement as Portland
cement. This was because the cement products had the
resemblance of the Portland in England Apsdin, so confirmed
the name to the cement. Modern cement in logical and
scientific development from natural cement.

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PRODUCTION OF CEMENT

Methods of production of cement have changed greatly


over the years. It has changed so much that there old process
has no connection with the modern process. Earlier, the fire
which was used to burn the raw materials was done in a fixed
place i.e., it was stationer; it could not be moved or rotated.
After a few years intermittently operated kilns were used. The
production was done on a small scale. The kilns which were
used for burning underwent great changes. The most notable
was the introduction of the rotary kilns. In 1877 T.R.
Crompton obtained a British patent as a rotary kiln for the
purpose was not a success. Fredrick Ransance obtained
British and U>S> patents in 1885 and 1886 respectively.

This was the process that achieved the 1st success in the
United States. Thi9s eventually led to complete adoption of
rotary kiln for production of cement. But in Europe the
continuously operating staff kiln is even used today.

MODERN PROCESS OF MANUFACTURING CEMENT

PREVIOUS PROCESS:

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Cement is a finely ground powder, usually grey which
when mixed with water hardens and develop-s strength
primarily because of large content of a hydrous calcium
silicates. The most common raw material is lime stone and
clay or share. The raw mix in finely ground and heated to
about 1500 degree celcious to decompose the calcium oxide
poultry fused clinker of marble size is produce the clinker is
then ground with the small amount of calcium sulphate
(gypsum). Then the content was obtained.

This was the type of manufacturing process which was in


use in the earlier days.

THE MODERN PROCESS

The modern manufacturing process of cement is of two


type.

1. Dry process.
2. Wet process.

FLOW DIAGRAM SHOWING MIXING OF RAW MATERIALS

DRY PROCESS

14
CALCAREOUS MATERIALS AGRELLACEOUS
(LIME STONE ETC) MATERIALS (CLAY ETC)

CRUSHING CRUSHING

FUSE GRINDING IN BALL FUSE GRINDING IN VALL


MILLS AND TUBE MILLS MILLS AND TUBE MILLS

STORAGE STORAGE

MIXING OF RAW MATERIALS


IN CORRCT PROPORTION

STORAGE TANK

15
WET PROCESS

CALCAREOUS MATERIALS AGRILLACEOUS


(LIME STONE ETC) MATERIALS (CLAY ETC)

CRUSHING WASHING

STORAGE IN SIDE SILOS STORAGE IN BASINS

CHANNELS

GRINDING MILL

FERMENTATION OF SLURRY

CORRCTING BASINS

STORAGE TANK

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The mixing of raw materials involves four stages. They are

a. Size reduction.
b. Blending.
c. Liberating Carbon-di-oxide.
d. Pulverizations.

The procedures are the phases are almost identical in both


the process.

The phases are step that are involved in the manufacturing


process is

a. Mixing of raw materials


b. Burning.
c. Grinding.

TYPES OF CEMENT AVAILABLE

Till a few years back in India only ordinary Portland


cement was produced. But they were not ideal for extreme
weather in certain part of the country. Also this cement did
give good outlook if not pointed therefore the manufacturers
come to know about these factors and have manufacture
different types.

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The list of cement is given here.
1. White cement
2. Color cement.
3. Water proof.
4. Acid Proof
5. Blast furnace.
6. High Alumina Cement
7. Ordinary Portland Cement
8. Expanding Cement
9. Pozzolana Cement.
10. Quick Setting Cement
11. Rapid Hardening Cement.

STORAGE OF CEMENT

Cement should be stored very care fully. That is in huge


closed containers that is silos. It is stored in closed placed to
avoid contact with atmosphere. This so because if it gets mixed
with the moisture in the atmosphere. It becomes useless. It
can also be stored in storage shed.

Cement was previously packed in gunny bags. But by


the time it reached actual consumer half it would have been
split over. This was compounded sealing problem. The bags
were sealed with threads. But was not so strong. But after the
polythene or Plastic bags came into scene the loss has been
curtained. It has become easy for transportation. The bags are

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sealed with the help of machine. Hence major problem of
storing and transporting has been averted.

HOW IS CEMENT USED?

A mixture of cement and water is called heat cement


paste, whether fresh or hardened. In some granting
operations, so including oil well cementing. The paste used as
such generally; however, it constitutes the hardening
ingredient in mortar or concrete. This Cement paste ordinarily
amounts from 20% to 35% of the volume of the concrete.

19
CHAPTER-3

CEMENT INDUSTRY

 CEMENTING CONSTRUCTION SECTOR

 COAL REQUIREMENTS

 TRANSPORTATION

20
CHAPTER-3

CEMENT INDUSTRY

CEMENTING CONSTRUCTION SECTOR:

Cement is the basis material required for all


constructional works. It is vital ingredient to the countries
development.

India’s Cement Industry has experience steady progress.


Since its inception in 1914. The output of the major and mini
cement plants has increased from 57.6 million tons in 2001-
02. The out put of cement may be high at 68 million tons in
2002-03. India is the fifth largest cement production after
China, Russia, Japan and U.S.A. With the turnover of Rupees
120 billion comprising 52 companies with 101 plants.

The cement industry in India is poised to scale new


heights thanks to the liberalization policies of the Government
adoption of state of the art Technology and the massive
investment of rupees 100 billion. By the year 2010 A.D.
capacity of this Industry to reach the impressive level of 120
million tons.

India is presently producing several varieties of cement.


These includes to ordinary Portland Cement(OPC), Portland
Pozzalana cement (PPC), Portland Blast furnace slag cement
(PBFS), Rapid setting cement , oil well cement and white

21
cement. India is also producing high strength cement like 43
grades and 53 grades. Low heat cement is produce for the
massive construction of Dames, Barrages, Deep foundation for
high rise building etc.

The domestic demand is assumed to grow at 8% per


annum. The cement capacity which was 62.05 million ton’s in
1992-93 rise to 84.03 million ton in 2000-01. Around 7.85
million tons large cement capacity was proposed to add during
2004-05 of which 5.50 million ton was to be operational in
2005-06 and the remaining 2.35 million ton would be
operational; in 2006-07. Cement consumption may reach a
level of 92.65 million tons by 2010.

Mini cement plants were setup at the governments


insistence during the early 1980’s due to the storage of
cement. India has been one of the pioneering countries as for
as mini cement plant sprouted up around restricted and
scattered limestone deposit areas. Because of low overheads
and excise duty, the cement manufactured by mini plant is
much cheaper. Mini plant enjoy concession in excise duty to
the extent of rupees 7.50 per bag. However, these plants
depend upon traditional technology leading to poor quality of
cement.

Cement Machinery segment is witnessing a boom.


Segment is capable of manufacturing and supplying complete
cement plants based on the dry process and pre-calcinations
technology for capacities upto 5000 tons per day. There are 18

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units in the organized sector for the manufacture of complete
cement plant with total installed capacity worth rupees 2000
million per annum. The total production rise from rupees 1900
million in 2000-01 to rupees 2250 million in 2001-02.

Inspite of some problem, the cement industry is at


present well pleading. It looks 14 years to double the capacity
to 29 million tons in 1998. Since then upto the end of March
2000, it had gone upto 96.5 million tons and increase of 140
%. Like wise in 1999-2000 consumption has gone up by 6%
after 1% fall in previous year of course, government
consumption has down from 50% in the early 1980’s to about
20%.

The Cement has great future however certain measures


as needed to setup the space of growth of cement industry.
There is need for accelerating the building of concrete road and
multi purpose hydro project. The storage of dwelling units is
currently at 35 million. Construction of houses should priority
area.

Currently India exporting cement to Bangladesh,


Srilanka, Nepal, U.A.E., Maldives, Philippines, Yemen, Dubai,
Qatar, and of few other countries.

The international cement rate is mostly in bulk for


which, India has virtually no facilities either in the cement or
in the transportation and handling.

The infrastructural facility in our ports are inadequate


for receipts, storage, handling, loading and unloading of

23
cements for instance Japan loads over 10,000 tons of cement
clinker a day as compared to India’s 3,000 ton a day.

COAL REQUIREMENTS:

The availability and movement of coal has been of


perennial problem of the cement industry. 90% of the coal
deposits are located in four states in Bihar, Orissa, West
Bengal, and Madhya Pradesh. Also burning Madhya Pradesh
none of the other states have any sizable lime stones deposit.
This coal has to be handled or very long distance.

Coal requirement by the industry today stands at 13


million tons at the 6% of the coal production. Cement
manufacturer are left the mercy of traders in coal who charge
exorbitant prices. The coal requirements may go upto 21
million tons in 2004-05 and 25 million tons by 2010.

Transportation whether by rail, road or sea plays a


crucial role in the marketing and pricing of cement.
Transportation cost has gone up by over 100% during the last
10 years. The bright for movement of cement for a distance of
750 km was increased from rupees 134 per ton in May 1982 to
rupees 456 in April 2001. This was further stepped upto
rupees 484 by the railway budget for 2004-05.

According to cement manufacturing association (CMA) on


investment of rupees 500.00 million will be needed by the
industry in the next 10 years in order to double its capacity, if

24
it is to meet the countries demand on other rupees 150.000
million would be required for expansion and modernization.

The cement industry has taken rapid strides in area like


energy conservation, mining, cement manufact5urer and
environment protection, thanks to efforts made by the nation
council for cement and building material (NCBM) and other
research organization.

As a result of large scale modernization and technology


up gradation, the industry is able to produce Cement at High
quality comparable to the best in the world. During the last
two decades the industry did experienced some technological
changes.

This includes;

1. Introduction of pre-calcinations technology.


2. Computer controlled kiln operation.
3. Pre blending of lime stone / coal and
4. Online quality control system.

The technological changes have resulted in reduction in the


overage energy consumption. The excise and transportation of
cement need to be pruned particularly in the present context of
liberalization and also the need for boosting exports. In
respect of vital in put like cement and any undue cost
escalation needs to be checked.

TRANSPORTATION

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The cost of transportation and distribution constitutes a
large chunk of the price the customer pays for cement - it can
be as much as 30% at many locations in the country. For a
low value basic product like cement, minimizing of
transportation and distribution is in national interest to make
the economy more cost competitive.

Today nearly 60% of cement of production units to


supply points is transported by road and rest by rail. For long
distance movement of cement, rail is still the preferred option
due to its lower cost. Nearly all the cement from supply points
to customer is transported by road. The cost competitiveness
of both rail and road transport has important bearing on the
price of cement. Railways have been steadily losing cement
traffic due to the inflexibility of freight and the operational;
restrictions imposed on the customer. The recent
improvements of operational efficiencies of railways is indeed
laudable but if this is achieved by passing on the entire
burden to its customers, We fear that the cost competitiveness
of railways will worsened in a long run - at least for a large
volume low price product like cement. Railways must examine
all secondary incurred by cement producer in transportation of
cement from rail heads if the cost competitiveness of rail
movement is to be improved. Railway should also consider
allowing cement producer to operate point-to-point rakes, with
multiple unloading points.

Road transportation during the last years was adversely


effected due to sharp and repeated increase in the price of

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diesel. Taking advantages of the effective caring capacity of
trucks, road transporter were offering competitive freight rate
by carrying mare than stipulated loads. However the
enforcement of carrying load restriction in the recent past in
many states has seriously disrupted road transport system in
the country. Freight has shot up with the demand for a higher
number of vehicles for the same impact on the cement
industry will ever more severe. Also pollution and traffic will
increase if the same volume is transported by large number of
vehicle.

It is apparent that motor Vehicles produced in the


country have the capacity to carry large loans per axle than is
currently stipulated, with out compromising safety. It will in
the national interest to consider upward revision of the present
stipulated permissible loads per axle is that the existing stock
of vehicles is more productively used. This will also meet the
needs of the cement industry which one of the largest used of
road transport. Indian railway has revised upward the
effective capacity of their wagons; a similar move is called for
in respect of road transport to tie over the looming crisis.

CHAPTER – 4

THE ASSOCIATED CEMENT COMPANIES LTD

27
 INTRODUCTION

 ACC - MILESTONES

 ORGANISATION STRUCTURE

 AWARDS & ACCOLADES 

 READY MIXED CONCRETE

 PROJECTS AND INVESTMENTS

 HUMAN RESOURCES

 THE ASSOCIATED CEMENT COMPANIES LIMITED

28
CHAPTER – 4

THE ASSOCIATED CEMENT COMPANIES LTD

INTRODUCTION

The associated cement companies ltd (ACC) is the


countries largest producer of cement it was established in
1936 with the philosophy of not to form a monopoly in cement
production but now, the situation of Indians cement industry
virtually becomes monopoly in favor of ACC. That means ACC
becomes such a giant in cement industry that the other Indian
industrial giant like birla, L&T, etc., who have already entered
into the cement industrial field are not able to give a bit of
competition to ACC. Despite a lot of ups and downs faced by
the several region. ACC becomes an unbeaten sovereign of
Indian cement industry. It is the oldest cement companies
among the private sector.

The ACC is the only cement company having the


research centre using. It has the central research at Thane of
Maharastra which was established in 1965.

Here various type cement and cement based products are


developed for the first time in India. Many of them are
substituted with some of the export from western countries.

It is the only company in India which products variety


and of cement and cement based product. Its products are
export from India. The company produces such a class of
goods which produced in the west. Only ACC produced such

29
variety of products in India with completely ingenious
technology. The company is known develops its own
technology called “ACC TECHNOLOGY”.

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 Bahadur and Sir Homy Mody among
others.

Barely three years later, the fledgling company was


catapulted into the fiery cauldron of World War II, and
resources were geared to meet that onslaught. Soon after,
India gained her independence. ACC was there - more than an
eyewitness to history. Helping to make history. Helping to
build the new India, waiting in the wings… changing the
landscape, the very face of the country.

30
Over the years, ACC realized that people are as different as
they are similar. Different needs, different lives, different
dreams. With its depth of knowledge and width of experience
ACC, today, is poised to fulfill the hopes and aspirations of
people across the length and breadth of the country.

For decades now, ACC has been forging a pioneering


path making cement. Along the way, it sharpened its expertise
on the cutting edge of the latest processes and technologies:
learning/adapting - not just transplanting - to meet the
specifics of local operating parameters. In the process - setting
standards, innovating, not just meeting needs, but anticipating
them.

A strategic alliance

The house of Tata was intimately associated with the


heritage and history of ACC, right from its formation in 1936
upto 2000. Between the years 1999 and 2000, the Tata group
sold all 14.45 per cent of its shareholding in ACC in three
stages to subsidiary companies of Gujarat Ambuja Cements
Ltd (GACL), who are now the largest single shareholder in
ACC. This has enabled ACC to enter into a strategic alliance
with GACL; a company reputed for its brand image and cost
leadership in the cement industry.

Holcim - a new partnership

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

31
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.

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.

32
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 neighborhoods. 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, Church
gate. 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.

33
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

1956 Bulk Cement Depot established at Okhla, Delhi

1957 Technical training institute established at


Kymore, Madhya Pradesh.

1961 Oil well Cement manufactured at ACC Shah bad


Cement Works in Karnataka for cementation of
oil wells up to a depth of 6,000 feet.

34
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.

1973 Take-over of The Cement Marketing Company of


India (CMI)

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 tone
cement plant at Yanbu-Ras Biridi in Saudi
Arabia.

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.

35
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.

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.

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.

2005 ACC receives the CFBP Jamnalal Bajaj Uchit


Vyavahar Puraskar Certificate of Merit – 2004
from Council For Fair Business Practices.
2006 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.

36
Pursuant to the open offer, ACIL’s shareholding
in ACC increases to 34.69 % of the Equity share
capital of ACC.
2007 Commissioning of Modernization 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.

ORGANISATION STRUCTURE

The ACC Board comprises executive, non-executive, and


nominee directors. This group is responsible for determining
the objectives and broad policies of the Company - consistent
with the primary objective of enhancing long-term shareholder
value. The Board meets once a month.

Two other small groups of directors - comprising


Shareholders'/Investors' Grievance Committee and Audit
Committee of the Board of Directors - also meet once a month
on matters pertaining to the finance and share disciplines.

Besides these bodies, there are senior executives and


other regional managers - based at the Company's corporate
office, and at its marketing offices and manufacturing units -
who contribute to the development and operation of the
various functions.

While these groups form the core management team that


frames and guides corporate policy, ACC is proud of its
manpower strength of about 15,000 people, who comprise

37
experts in various disciplines assisted by a dedicated workforce
of skilled persons. Quite a number of them have logged many
years of service with the organization. They come from all parts
of the country and belong to a variety of ethnic, cultural and
religious backgrounds. Because of such a cosmopolitan make-
up, ACC can rightly be said to embrace within its fold a family
that forms a 'mini-India'.

Awards & Accolades 

 National Award for outstanding performance in


promoting rural and agricultural development – by
ASSOCHAM

 Sword of Honor - 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.

38
 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

39
 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 Utilization - by Ministry of


Power, Ministry of Environment & Forests and Dept of
Science & Technology, Govt of India - for manufacture of
Portland Pozzolana Cement.

CEMENT BUSINESS

Our cement business performed well during the year.


ACC as a group registered increased sale of 12.97 million tones
of cement for nine months ended December 31, 2007 as
compared to 12.14 million tones in the corresponding period of
the previous year. The sales turnover for nine months ended
December 31, 2007 grew to Rs.2794.33 crores as compared to
Rs. 2494.05 crores in the same period of the preceding year.

Your Company has reoriented its marketing activities


with greater focus on the customer and end-user. Several
initiatives have been taken to provide much more service
orientation in a manner that will help differentiate the image of
the Company.

40
READY MIXED CONCRETE

Your Company’s Ready Mixed Concrete (RMX) business


maintained the growth trend witnessed in the last few years
with the turnover of this business growing by 27 per cent in
the nine months ended December 31, 2007. We further
strengthened our RMX business by the acquisition of Tarmac
(India) Pvt. Ltd., the Indian arm of Tarmac Heavy Building
Materials Overseas Ltd. of UK, with RMX units in Mumbai
region.

Ready Mixed Concrete industry is perhaps among the


fastest growing sectors in India with compound annual growth
rate of over 30 per cent. In the coming years the country will
witness increased construction activity with faster
development in our cities and infrastructure. RMX is expected
to play a very important role in this scenario.

An important ingredient in RMX is aggregates. These


minor minerals come under the purview of state governments
and their mining is predominantly in the unorganized sector.
As a result, supplies are erratic and prices fluctuate widely,
adversely affecting RMX industry. There is a need to revisit the
current policy of granting short term leases if the aggregate
production has to evolve as an organized sector in our country.

41
PROJECTS AND INVESTMENTS

The Company successfully completed the modernization


project at Chaibasa and commenced commercial production on
September 16, 2007. Our other projects viz augmentation of
capacity at Gagal Unit II in Himachal Pradesh, augmentation
of grinding capacity at Wadi and Tikaria, expansion of capacity
at Lakheri and the setting up of a 25 MW Captive Power Plant
at Lakheri are progressing on schedule.

DISINVESTMENT

During the year, we made notable progress in exiting


from our non-core non-cement business. We divested the
Refractory Business in September, 2007 to ACE Refractories.
The sale of this unit earned us a profit of Rs.174.05 crores.
Similarly we exited from Everest Industries which ceased to be
a subsidiary of your Company. We hope to divest our balance
non-core subsidiaries during 2006.

CONSOLIDATION

Two of your Company’s subsidiaries Bargarh Cement


Ltd. and Damodhar Cement and Slag Ltd. were merged with
the Company after receiving the necessary approvals. With
this, your Company now operates a countrywide network of 14
cement plants based at 10 12 locations. Annual cement
capacity of your Company now is 19.03 million tones.

42
CHANGE OF NAME:

The Board of Directors decided that the name of your


Company be abbreviated and changed to “ACC Limited” so as
to reflect its Corporate image and brand name more
accurately. Over the years, your Company has come to be
referred popularly in the cement market and the financial
world by its acronym “ACC”. The Company’s products are also
sold under the name “ACC” which has been registered as a
Trade Mark. We believe that the change of name to “ACC Ltd.”
will be more user-friendly.

DIRECTORATE

Your Board has been strengthened with the joining of Mr.


D K Mehrotra, Mr. R A Shah, Dr Nirmalya Kumar, Mr. S
Haribhakti and Mr. A Singhvi.

Mr. D K Mehrotra is the Managing Director of Life


Insurance Corporation of India. He has held important
positions in LIC in India and abroad.

Mr. R A Shah is a senior partner of Crawford Bayley &


Company and a reputed solicitor specializing in a broad
spectrum of corporate laws.

Dr Nirmalya Kumar is a Professor in London Business


School and well-known in the field of management education.
A prolific writer, Dr Kumar is the author of many books on
management.

43
Mr. Haribhakti is Managing Partner of a leading
accounting firm “Haribhakti & Co” and CEO of “Haribhakti
Group” having a presence of more than five decades in the
areas of accounting, financial and management services in
India.

Mr. Anil Singhvi has been associated with Gujarat


Ambuja Cements Limited (GACL) since 1986 and has held very
senior managerial positions in that Company. He is presently
the Managing Director of GACL.

I welcome these distinguished gentlemen to the Board.


We stand to gain much from their expertise.

HUMAN RESOURCES

I have been a great admirer of the talent of your


Company’s people. Their dedication upholds and nurtures the
enviable reputation of the Company. They are enthusiastic and
quick to adapt to changes in the environment while
maintaining high standards of efficiency as well as the great
ethical tradition that ACC is known for. They are indeed the
architects of the impeccable image and high standing of the
Company. ACC enjoys a track record of peaceful and
harmonious industrial relations. I wish the employees of your
Company and their family’s good luck and health always.

44
-TRAINING
- WELFARE

TRAINING

An enterprise like ACC is part of the national community


with responsibilities towards a wide range of institutions and
individuals. And the one closest to ACC is its concern to train
manpower for the cement industry as well as in specialized
trades and subjects for various industries.

The Sumant Moolgaokar Institute (SMEI) - is an eloquent


testimony to the ACC commitment to training. It provides
exhaustive training in various trades like electricians,
instrument mechanics, diesel mechanics, fitters, machine tool
operators, welders, and foremen in various disciplines. The
institute has turned out a vast number of artisans and
foremen who are manning senior positions in cement and
other industries.

ACC's commitment to training and the company's


philosophy of sharing expertise by training manpower for the
cement industry as a whole is very well known. It has been
substantiated by an allocation by the World Bank/DANIDA
groups of a grant to the Regional Training Center (RTC), at the
ACC plant at Jamul, for the benefit of cement plants in central
and eastern India.

The analytical skills development program (ASDP) helps


management trainees improve thought processes and
analytical ability in order to uncover and examine problems

45
more effectively. Deputy Managers are put through a
managerial skills development program (MSDP) to instill the
skills required for responsible leadership and analytical
business situations. A management competency development
program (MCDP) supports this with niche training for
managers in their respective fields. And the cross-functional
skills development program (CFSD) helps broaden their
outlook. Finally, the general management course
(GENMANCO), and the strategic leadership development
program (SLDP) for senior managers and vice presidents,
respectively, help them to develop responsiveness towards the
current and future challenges by sharpening.

WELFARE

It is all too easy to see a company like ACC in abstract


terms of balance sheets, technologies and organization charts.
Such a view overlooks the fact that the most valuable assets
are the commitment and skills of individuals who make the
system work and lay the foundations for future growth.

Apart from laying stress on training, ACC offers a host of


facilities to its employees to maintain a congenial working
environment. Among those given at the factories:
houses/tenements for a large number of workers and staff,
cooperative societies, crèches, dispensaries/hospitals,
canteens, rest halls and so on. Benefits are liberally subsidized
by the company.

46
Over the years, the company's community welfare
schemes have continued to benefit the people around whom
ACC moves and has its operations with activities including
health care, adult education, irrigation, animal husbandry,
cottage industries etc.

47
THE ASSOCIATED CEMENT COMPANIES LIMITED

Registered Office: Cement House,


121, Maharshi Karve Road, Mumbai - 400 020

CONSOLIDATED AND STANDALONE AUDITED FINANCIAL


RESULTS FOR THE PERIOD APRIL 2007-DECEMBER-2007

- CONSOLIDATED PROFIT AFTER TAX FOR APRIL-DECEMBER-07


UP BY 133 % AT
   Rs. 513.73 CRORE.  (STANDALONE - Rs.544.18 CRORE UP BY
156 %)
- CONSOLIDATED SALES VOLUME FOR APRIL-DECEMBER-07
12.97 MT UP BY 6.8%.
- CONSOLIDATED SALES VALUE FOR APRIL-DECEMBER-07 UP
BY 10 %
   (STANDALONE UP BY 15 %)
- CHANGE IN ACCOUNTING PERIOD
- DIVIDEND 80 %

48
I. The audit committee have reviewed and the Board of
Directors of the company have approved the audited
Consolidated and Standalone accounts for the period April
to December-2007 at its meeting held on January 24, 2008
and the text of this statement was also taken on record.

II. AUDITED CONSOLIDATED RESULTS

YEAR
NINE
    (NINE YEAR
MONTHS
MONTHS)
     ENDED  ENDED  ENDED
DEC 31,  DEC 31,  MARCH
   
2007 2006 31, 2007
 REVIEWE
    AUDITED  AUDITED
D
    Rs.Crore Rs.Crore Rs.Crore
 NET SALES / INCOME FROM
1 3861.18 3508.79 4864.72
OPERATIONS
   LESS: EXCISE DUTY RECOVERED 497.72 464.39 637.50
   NET SALES 3363.46 3044.40 4227.22
         
2  OTHER INCOME      
    i) Dividend 4.72 0.17 0.23
    ii) Gain/(Loss) on foreign exchange (Net) (6.98) (3.88) (4.59)
   iii) Other items 84.63 38.31 68.32
   iv) Other non-recurring items 25.58 18.37 31.91
         
3 Share of earnings of Associates 1.20 0.35 0.82
  TOTAL (1+2+3) 3472.61 3097.72 4323.91
         
4  TOTAL  EXPENDITURE      
         
   a)( Increase) /Decrease in stock in trade (53.71) (62.35) (47.70)
   b) Consumption of Raw materials 568.75 533.87 733.15
   c) Staff cost 204.35 190.39 256.97
   d) Power & Fuel 678.87 647.10 842.64
 e) Outward Freight charges on Cement
  532.72 404.40 542.24
etc.
   f) Excise Duties (Net) 45.43 49.26 64.95
   g) Purchase of Cement & Other Products 47.90 62.85 84.11
   h) Other Expenditure 771.49 700.40 1037.28
   Total Expenditure 2795.80 2525.92 3513.64

49
         
         
 PROFIT BEFORE INTEREST,
5      
DEPRECIATION, MINORITY
 INTEREST, EXCEPTIONAL ITEMS
  676.81 571.80 810.27
AND TAX (1+2+3-4)
         
6  INTEREST  (NET) 65.97 71.08 92.54
         
7  DEPRECIATION 171.70 168.41 225.70
         
8  MINORITY INTEREST 4.13 4.13 6.11
         
 PROFIT/(LOSS) AFTER MINORITY
9      
INTEREST &
 BEFORE TAX & EXCEPTIONAL ITEMS
  435.01 328.18 485.92
(5-6-7-8)
         
1
 EXCEPTIONAL ITEMS      
0
 a) (Provision) / Write back of
  1.44 (0.50) (0.50)
contingencies
 b) Profit on sale of undertaking-
  174.05 - -
Refractory Business
   c) Employees retirement Benefits (13.15)  
   d) Profit from Divestment of Subsidiary 69.00  
         
1  PROFIT/(LOSS) AFTER EXCEPTIONAL
     
1 ITEMS
   & BEFORE TAX ( 9+10) 666.35 327.68 485.42
         
1
 PROVISION FOR CURRENT TAX 75.84 34.33 59.86
2
         
1
 PROVISION FOR DEFERRED TAX 70.47 73.07 23.04
3
         
1
 FRINGE BENEFIT TAX 6.31    
4
         
1  PROFIT/(LOSS) AFTER PROVISION
     
5 FOR TAXATION
 & EXCEPTIONAL ITEMS  (11-12-13-
  513.73 220.28 402.52
14)
         
1  Paid- up Equity share capital 184.72 179.57 178.74

50
6
  ( Face value per share Rs.10 )      
         
1  Reserves excluding Revaluation
1966.89   1501.19
7 Reserves
         
1  Basic Earnings per
28.33 12.36 22.58
8 Share                               Rs.
 Diluted Earnings per
  27.46 11.91 21.73
Share                             Rs.
         
1  Aggregate of Non-Promoter
     
9 Shareholding
12254633
   Number of Shares 178416154 178533611
6
   Percentage of shareholding  66.42% 100% 100%

51
V. Turnover and Profits

CONSOLIDATED

The accounting year has been changed from April – March to


January – December. Therefore the accounts have been drawn
up for Nine months for the period ended December 31, 2007.

The profit after tax for nine months ended December 31, 2007
increased to Rs. 513.73 crore including profit on sale of
Refractory business and profit on sale of subsidiary as
compared Rs. 402.52 crore for financial year 2006-07 (12
months).

Sale of cement for nine months ended December 31, 2007 was
12.97 million tones as compared to 16.57 million MT for the
financial year 2007 (12 months). Sales turnover for nine
months ended December 31, 2007 was Rs. 3,363.46 crore as
compared to Rs.4227.22 crore for financial year 2004-07 (12
months).

Improved volume and realization as offset by increase in cost


of inputs has resulted in higher profit before interest,
depreciation, exceptional items and tax at Rs. 676.81 crore for
nine months ended December 31, 2005 as compared to Rs.
810.27 crore for financial year 2006-07 (12 months).

Interest cost (net) was Rs. 65.97 crore for nine months ended
December 31, 2007 as compared to Rs. 92.54 crore for
financial year 2006-07 (12 months). Depreciation was higher
at Rs. 171.70 crore as compared to Rs. 225.70 crore for

52
financial year 2006-07 (12 months).

The above explanations hold good for standalone results.

VI. New Projects/Modernization

The modernization project at Chaibasa commenced


commercial production with effect from September 16, 2007.
The augmentation of capacity at Gagal Unit II and projects at
Lakheri for expansion of capacity and setting up 25 MW
Captive Power Plant are progressing as per schedule.

VII. Divestment of Subsidiary

The Company has sold 85.48 lakh shares of Everest Industries


Limited (EIL) and appropriate profit on sale has been
recognized during quarter ended December 31, 2007. EIL
ceased to be a Subsidiary of the company.

VIII. Divestment of Refractory Business

The Company has divested its Refractory Business as on


September 30, 2007 and profit on sale of undertaking
amounting to Rs. 174.05 Crore has been recognized during the
nine months ended December 31, 2007.

IX . Merger

The company’s subsidiaries Bargarh Cement Ltd. and


Damodhar Cement and Slag Ltd. have been merged with the
Company as per the scheme for merger duly approved by the
Shareholders and confirmed by the respective Courts. The

53
numbers of subsidiaries are reflected in the results of the
company.

X. Acquisition

The Company acquired 98.84% of the Equity shares of Tarmac


(India) Pvt. Ltd... (TIPL) from Tarmac Heavy Building Materials
Overseas Ltd., UK. TIPL is in the Ready Mix Concrete
business. TIPL is now a subsidiary of the Company. It is
proposed to merge TIPL, subject to requisite approvals with
Company with effect from January 1, 2008.

XI Outlook

The cement industry recorded a growth rate of around 10% for


nine months ended December 31, 2007 as compared to 8.7%
in the corresponding previous period. With the continued
emphasis on infrastructure and housing sector and with good
monsoons in most parts of the country, industry is expected to
do well in future. With the improving overall growth of the
economy (GDP) which is expected to be over 7% per annum
and with improving demand-supply dynamics, cement
industry may experience stable to improved cement prices.

XII Dividend

The Board of Directors has decided to recommend a dividend


of Rs. 8 per share aggregating to Rs. 168.31 Crore (including
tax on dividend).

(M.L.Narula)      

54
MANAGING DIRECTOR

Mumbai - January 24, 2008

Our Vision

ACC (The Associated Cement Companies Limited) is


India's foremost manufacturer of cement and concrete. Its
sales turnover for nine months ended December 31, 2007 grew
to Rs.2794.33 crores as compared to Rs.2494.05 crores in the
same period of the preceding year. ACC's operations are spread
throughout the country with 14 modern cement factories, 11
regional marketing offices, and several zonal offices. It has a
workforce of about 9000 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 programmer
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.

55
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.

All of this is underscored inasmuch as this research and


technology base - housed under an autonomous division
known as Research and Consultancy Directorate (RCD) - has
received recognition from premier research and technology
institutes in India and abroad.

Today, the company's operations are spread throughout


the country - with 14 cement factories, 11 regional marketing
offices, 21 area offices, and a dedicated employee band of
about 9000 people from all corners of India.

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.

F. E. Dinshaw – the
founder of ACC

56
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 full name, The Associated Cement Companies
Limited, itself indicates the company’s origins from a merger.
Many years later, some stockbrokers in the country’s leading
stock exchanges still refer to this company simply as ‘The
Merger’.

Heritage

The house of Tata was intimately associated with the


heritage and history of ACC, right from its formation in 1936
upto 2000. Between the years 1999 and 2000, the Tata group
sold all 14.45 per cent of its shareholding in ACC in three
stages to subsidiary companies of Gujarat Ambuja Cements
Ltd (GACL), who are now the largest single shareholder in
ACC. This has enabled ACC to enter into a strategic alliance
with GACL; a company reputed for its brand image and cost
leadership in the cement industry.

57
58
CHAPTER – 5

FIRM PROFILE
(SRI SHABAREESH AGENCIES)

 CEMENT DEALERS IN SHIMOGA

 MARKETING AND POLICIES OF THE FIRM

 MARKETING PROBLEMS

59
CHAPTER – 5

FIRM PROFILE

“SRI SHABAREESH AGENCIES” was opened in 1985. It


is situated on balraj urs road for being more convenient to
interact with transports. Mr. C.P. SUNDAR RAJ, is the
MANAGING PARTNER of SRI SHABAREESH AGENCIES, he is
a young man aged 48, S/O C.V. Puttanna shetty. His
Qualification is P.U.C. His native is Arsikere – Hassan District
Karnataka. He migrated to shimoga in 1985. He Knows
English, Kannada, Hindi, Tamil and Telugu language.

Mr. C.P. Sundar Raj has 30 years experience in trading


activities.

He started business in 1976 as a small shopkeeper at


Arsikere taluk. After 2 years of experience he started
wholesale business also in the age of 20 th he moved to north
India for purchase of Hardware in wholesale and retail market.
He started his business in and around Arsikere covering about
150 km in radius.

In 1985 he got separated from his family and came and


settled down in shimoga with the small cash in hand started in
9-9-1985 He had his own circle of friends and relatives and
improved the business royally good competing with local
market.

60
He made his name to be at the top of the town. He
mainly dealing with constructions steel equipments and
cement in the name style of Sri Karthik Hardwares. First it
was situated in 3rd cross, Garden area and after one year he
shifted for his own premises situated at Durgigudi, main road.
He was dealing with number of brands of cement with quality,
such as.

1. ACC
2. BAGALKOT
3. DIOMOND
4. RAASHI
5. CORAMANDAL etc.,

After a long successful carrier in business. ACC


recognizes him from being a good seller in 1990 and appointed
him as C&F agent (clearing and forwarding agent).

According to the saying of Mr. Sunder raj, “a dealer may


not be a highly qualified but highly sensitive to assess the
customer and his requirements the best service possible given
will be recognize”.

“Any convinced customer will be a free advertiser”. He


explains also he had well experience with co-traders,
Engineers, Financiers, Contractors and even with Politicians,
no body can guess the business at any time may get affected
with any of the agency said above.

61
And as C&F agent he has got 9 staff members in the
Office, and 80 Hamals at the godown, and 100 at the Railway
station, and he has owned by 20 Lorries for clearing the
Cement.

CAPITAL STRUCTURE
At that time the initial capital of the firm was 5, 00,000.
The firm started this by taking Loans from Vysya bank
shimoga. It includes the cost of Furniture, advance of
building, lighting arrangements etc., the firm involves in
dealing with cement products according to the customer
behavior with reference to various brands of the products.

CEMENT DEALERS IN SHIMOGA


AUTHORISED DEALER:
1. Ganesh steels.
2. K.S. Narayana setty and sons.
3. Salamath Enterprises.
4. Sri Veerabhadreshwara traders.
5. Hampee virupaksha traders.
6. Chowthy traders.
7. Anand trading company
8. Sagar traders.
9. Banashankary traders.
10. Sri Venkateshwara traders.
11. Nutan agencies.
12. U.K.S. Sitaram Acharya.
13. Sri Gurukaribasaveswara Traders.

62
Table No-1

Table showing the number of dealers in some


districts who have dealing with Shabareesh agencies as
C&F agents. They are shown by percentage.

Districts No. Of dealers


South canara 29
Udupi 12
Shimoga 20
Chikmagalore 17
Hassan 10

From the above table Sri Shabareesh agencies have


dealing with dealers in some districts. Among 5 districts
South canara has 37% of large number of dealers, shimoga
and Udupi has 16% of dealers respectively, and Chickmagalore
has 17% dealers and Hassan has small number dealers by
10%.

MARKETING AND POLICIES OF THE FIRM

63
Modern market is consumer oriented market. Consumer
is the king of the market begins with consumer needs and
ends with consumer satisfaction. Such market is conditioned
by two set of factors. Controllable and uncontrollable factors.
Controllable factors are those factors which are with in the
hold of the firm. The success of the product depends upon
these factors.

1. Product Mix policy


2. Price Mix policy
3. Promotional Policy
4. Distribution Policy

1. PRODUCT MIX POLICY:

Shabareesh agencies are promoting their business as


C&F agents of M/S ACC Ltd with dealing with cement. The
firm deals with cement according the order given by the
dealers. As the product which the firm is dealing is exclusively
under the category of cement.

2. PRICE MIX POLCY

Pricing is the most important marketing mix policy. It


has strategic importance as pricing is marketing weapon. It
required by the firm to undertake a good pricing policy
because it is an important factor which influences the
customer in purchasing of product.
Shabareesh agencies are exclusively C&F agents for M/S
ACC Ltd and they act according to the norms of the firm by

64
pricing, collection, service documentation, reporting, and
acknowledgements etc.

3. PROMOTIONAL MIX POLICY

M/S The ACC Ltd has adopted several promotional


activities to move forward the cement product in market. It
has undertaken advertising of the product through broad
advertisement. The company has adopted broad advertising
because it acts as an effective sales man. The other measures
through which the company has taken to popularity,

Its name is,

a) News paper advertisement


b) Calendar
c) Cable advertisement.

4. DISTRIBUTION MIX POLICY

Distribution means transfer of the product from C&F


agents to dealers to final consumer. Shabareesh agency
supplies goods directly to the consumer or contractor. The
company directly deals with the final consumer and some time
takes the help of middleman like contractors or Home builders.

65
MARKETING PROBLEMS

M/S The ACC Ltd directly involves in marketing


problem and looks in to the depth of all the fallowing problems.

1. Competitive market.
2. Price fluctuation
3. Consumer awareness
4. product advertisement
5. Location of the Firm
6. Size of the firm.

66
CHAPTER – 6

SURVEY FINDINGS

 INTRODUCTION

 MEANING OF SURVEY

 OBJECTIVES OF THE SURVEY

 LIMITATIONS OF THE SURVEY

 ANALYSIS OF THE SURVEY

 CONSUMER SURVEY FINDINGS

67
CHAPTER – 6

SURVEY FINDINGS

INTRODUCTION:

Today the consumer is the king of the market. Consumer


is the only judge, the reputation or otherwise of a product is
entirely dependent upon his attitude towards the product so
his satisfaction should be ultimate motto of the producer and
the marketer. Consumer’s interest should be taking into co-
ordination while taking marketing decision. It is through
consumer satisfaction only the producers and marketers can
improve their sales profit.

Many opinion will come when survey is made for


preference, improvements etc., of the product, but the opinion
of the consumer is important.

This report gives an analysis of opinion collected from


the customer regarding marketing of cement especially ACC
cement as against other brand.

MEANING OF SURVEY

Survey means going into department of respondent and


collecting his inner expression for the purpose of knowing his
attitude about which the survey is conducted.

Customer faced problems while dealing with the ACC


cement. There fore to study to their problems, Questionnaire
was prepared and given to the selected customer. The

68
selecting of customer is made on the basis of sampling method
and to those4 selected customer are given the format of
questionnaire and are requested to fill it on return to us.

I have conducted a survey about 100 customers. Who


have their dealing with ACC cements in Shabareesh agencies?

OBJECTIVES OF THE SURVEY

1. To know the general opinion of the customers about the


ACC cements.
2. To know the opinion of the customers about the
customer service rendered by agencies.
3. To know the effectiveness of the service provided by the
Shabareesh agencies in comparison with other dealers.
4. To know whether the service provided by the agency is
satisfactory or not.
5. To know whether the service provided by the ACC is
improving in the recent years.

LIMITATIONS OF THE SURVEY

1. 100 number of respondents contacted.


2. Lack of prompt reply given by the customer or more
precisely biased reply given by the customer.
3. Hesitation among the customer to freely express their
views.
4. Lack of awareness among the customer about the
procedure carried out by the bank.

69
5. Indefinite and vague problems and suggestion provide by
the customer etc.,

ANALYSIS OF THE SURVEY

The analysis of the survey was done by dividing the total


respondents into different categories are on the basis of income
and occupation.

During the time of surveying the customer was not clear


about their demand nor they had clear comprehension of their
problems and definite in their suggestion for the solving the
problem. However the following problems were found out at
the time of the survey, and the same was to Acc authorities.
The ACC authorities were enough to give answer to those
problems faced by the customers.

CONSUMER SURVEY FINDINGS:

The total number of respondents interviewed had used


cement fully and it was observed that the ACC cement was
quite well known in the city.

70
Table No-1

Table showing the Distribution of cement consumer


interviewed in different areas in Shimoga district.

Regions No. Of Percentage


respondents
Shimoga 25 25%
Thirtahalli 30 30%
Bhadravathi 20 20%
Soraba 14 14%
Sagar 10 10%
Hosanagara 5 5%
Total 100 100%

From the above table it is clear that major number if


respondents contacted from Thirtahalli and minimum from
Hosanagara.

71
Graph showing the Distribution of cement consumer
interviewed in different areas in Shimoga district

Sagar Shimoga
10% 24%

Hosanagara
Soraba 5%
13%

Bhadravathi
19% Thirtahalli
29%

72
Table No-2
Table showing the distribution of cement consumer according
to brand and area interviewed.

REGION NUMBER OF A.C.C INDIAN Grashim OTHERS


CONSUMERS CEMENTS
Shimoga 38 10 3 8 2
Bhadravathi 25 5 1 7 1
Sagara 20 6 2 2 -
Hosanagara 17 3 2 2 -

The table gives maximum details regarding the


respondents interviewed, i.e, and brand wise in different parts
in shimoga. In this table out of 100 respondents 38 in
Shimoga, 25 in Bhadravathi, 20 in Sagar, and 17 in Hosanagar
Respectively.

73
Graph showing the distribution of cement consumer
according to brand and area interviewed

74
40

35

30

25

20

15

10

0
NUMBER OF A.C.C INDIAN CEMENTS Grashim OTHERS
CONSUMERS

Table No-3

Table showing the distribution of respondents under Income


groups.

INCOME GROUP NUMBER OF PERCENTAGE


P/M RESPONDENTS
Below 10,000 26 26%
10,000-15,000 32 32%
15,000-25,000 24 24%
Above 25,000 18 18%
Total 100 100%

Out of the 100 respondents contacted 32% of them


from 10,000-15,000 which constitute the largest portion of the
respondents and the lowest group is of the income group above
25,000 which is of 18% only.

75
76
Graph showing the distribution of respondents under
Income groups.

35 32

30
26
24
25

18
20

15

10

0
Below 10,000 10,000-15,000 15,000-25,000 Above 25,000

Table No-4

77
Table showing consumer’s opinion about the ACC cement in
Shimoga as per their Occupation

OPINION BUSI % SALA % PRO % OTH % TOTAL


N RIED FES RS
ESS EMP SION
MAN L
OYES
BETTER 10 24 8 29 7 28 4 66 29
GOOD 13 32 9 32 11 44 1 17 34
SATISFACTORY 15 36 11 39 6 24 - - 32
NOT GOOD 3 8 - - 1 4 1 17 05

The above table shows that the classification of respondents


according to their occupation and their opinion of the service
towards ACC cements.

In the first group 41 respondents are Business man and


among 41 respondents, 10 respondents opinion that the
service provided by the ACC ltd is Better, 13 respondent’s
opinion is good and majority that is 15 respondents opinion is
satisfactory and the last very few that is 3 respondents opinion
is not bad.

In the second group 28 respondents are salaried


Employees. Among 28 respondents majority of respondent
that is 11 opinions is satisfactory, 8 of them is Better and 9
have respond good.

In third group, that is 25 respondents are from Profession


and it shows their opinion about service among 25

78
respondents 7 have respond Excellent, 11 have respond good
and only 1 responded Not bad.

In fourth group, that is 6 have responded who are


Engaged in some other occupations, among 6 respondents 4
responds that the service is Better, only 1 responded have good
opinion and another responded also have good opinion.

79
TABLE NO-5

Table showing the respondents using ACC cements as per


their occupations.
Uses Business Salaried Professio Others Total
Man employees n
Used 11 13 8 10 42
Not used
21 12 10 15 58
Total 32 25 18 25 100

Above table show that out of 100 respondents 42


respondents were used ACC cements and 58 have not used it.
Out of 42 respondents 11 were from Business man, 13 from
salaried employees, 8 from Profession and 10 from other
Occupations.
Among 58 Respondents who were not used ACC
cements, among them 21 from Business mans, 12 from other
occupations.

80
Graph showing the respondents using ACC cements as
per their occupations

25

21

20

15
15 13
12
11
10 10
10 8

0 0 0
0
Uses Business Salaried employees Profession Others

81
Table No-6

Table showing the distribution of cement consumers according


to their occupations.
Brands Business Salaried Profession Others Total
man employees
Acc 12 10 14 8 44
Indian
Cement 8 6 8 5 27
Grashim 6 8 4 7 25
Others 10 4 6 9 29
TOTAL 36 28 32 29 100

The above table show that the first occupation group i.e,
Business mans are using 36 in that, 12 respondents are using
ACC, 8 were Indian Cements, 6 were Raashi and 10 were other
Cements.
In second group i.e, 28 respondents are salaried
employees. Among them 10 were using ACC, 6 were using
Indian cements, 8 were using Grashim and 4 respondents
using other cements respectively.

In third occupation, 32 respondents are using cements,


among them 14 respondents using ACC, 8 respondents using
Indian cements, 4 were using Raashi and other respondents
are using other cements.
In fourth occupation i.e, 29 respondents are using
Cements, among them 8 were using ACC, 5 were using Indian
cements, 7 respondents were using Raashi and other
respondents were using other cements respectively.

82
Graph showing the distribution of cement consumers
according to their occupations

83
14

12

10

0
Acc Indian Cement Grashim Others

Business man Salaried employees Profession Others

Table No 7

Table showing the opinion of the consumers about ACC


cements from the following aspects.

Aspects Better Good Satisfactory Not bad Total


Quality 14 8 16 5 43
Price 8 6 8 7 29
Demand 8 10 11 4 35
Total 28 22 35 15 100

According to the above table the consumer’s opinions


about ACC is very good. In the first aspect Quality 43
respondents were responds very well. 14 responds better, 8
responds good, 16 responds satisfactory and 5 responds Not
bad respectively.

In the second aspects Price is also in very good


condition. Among 29 respondents 8 responds better, 6

84
responds good, 8 responds satisfactory and 7 respondents
respond not bad.

In the third aspect demand is also in very good


condition. Among 35 respondents 8 responds Better, 10
responds Good and 11 responds satisfaction and 4 members
responds not bad.

85
Graph showing the opinion of the consumers about ACC cements from
the following aspects

Better
33%
Not bad
12%

Satisfactory
37%
Good
19%

86
Table No-8

The table showing the consumers purchased cements from


different dealers in shimoga.

Number of Percentage
Dealers in Shimoga
consumers
Sri Ganesh Steels 36 36%
K.S. Narayana settee & 20 20%
sons 28 28%
Salamath enterprises 16 16%
Sagar traders
Total 100 100%

From the above table 36 respondents were purchase


cements in Ganesh steels, 20 respondents were purchase
cement in KS.N. & sons, 28 respondents were purchase
cements in Salamath Enterprises and 16 respondents were
purchase in Sagar traders out of 100 respondents.

87
Table No-9

Table showing the consumers are come to know about


Shabareesh agencies from different aspects they are shown
below.

Aspects Number of respondents Percentage


Friends 26 28.26%
Advertisement 38 41.30%
Dealers 18 19.56%
Contractors 10 10.86%
Total 92 100%

From the above table consumers do purchase cement


according to Shabareesh agencies from the opinion of Friends
in 28%, and 38 consumers purchase cements by seeing
advertisement, and 19% consumers are purchase by the
suggestion of the dealers and 10% consumers are taking the
suggestion from the contractors.

88
Graph showing the consumers are come to know about
Shabareesh agencies from different aspects they are shown
below

38
40

35

30 26

25

18
20

15
10

10

0
Friends Advertisement Dealers Contractors

89
Table No-10

Table showing the factors which have influenced the


consumers to buy ACC cements they are shown in the table.

Factors Number of respondents Percentage

Price 24 24%
Brand Image 12 12%
Quality 42 42%
Door Delivery 22 22%
Total 100 100%

Above table showing that the factors influenced the


consumers to buy ACC cements by some important factors,
they are 24% in Price factor, 12% in Brand Image, 42% in
Quality of the product, and 22% were influenced by the service
provided by the Company.

90
Graph showing the factors which have influenced the
consumers to buy ACC cements they are shown in the table

91
Price
24%
Door Delivery
22%

Brand Image
12%
Quality
42%

SUMMARY OF OBSERVATION

In the present world the human being as a consumer


should have the knowledge of every product he uses. This is
because he should not become an easy pray for the seller trap.

From this sample it was found that few respondents do


not know much about cement. They said that they do as their
contractor or Engineers say. But majority of them said they
purchased on their own.

According to the dealer, they said that it is its first or


craze that was driving people to buy popular brand cement. It
is said that previously people use to OK just for the cement
they were not bothered about the brand. But in the present
market the consumer consider the price preference.

It was also found that a few respondent of poor families


said that they wanted to build their houses with cement, but

92
due to high pricing of cement and which is going on increasing
they had to give up. We can also infer that ACC cement has
got a good scope for marketing in shimoga.

In shimoga, there are many cement dealers of almost all


the brands in the market. But the major brands of cement
according to the consumer are,

1. ACC
2. RAASHI
3. DIOMAND
4. BAGALKOT.
In Shimoga ACC is the first Cement sold in terms of
quality.

Thus ACC cement has got a good reputation and a good


place in the shimoga market. The number of dealers for ACC
cement is more than dealers for any other cement in Shimoga.

This shows that ACC cement has got a great demand in


the Shimoga’s market.

93
94
CHAPTER – 7

SUGGESTIONS AND CONCLUSION

 SUGGESTIONS

 CONCLUSION

95
CHAPTER – 7

SUGGESTIONS AND CONCLUSION

SUGGESTIONS

 ACC Ltd., are one of the oldest manufacturers of cement in


India. It has earned a good name in short period. It should
maintain and improve the same.
 ACC Ltd, sales officer visit the dealer regularly that is once
in every month.
 ACC Ltd should give credit facility to its dealers.
 ACC Ltd should pay much attention towards warehousing
and transportation facilities.

ACC cement has earned a good name in the market. It


should maintain and improve the same its price is high than
the other cements. Some types consumers observe only price
of the product in this regard ACC fails to participate in the
cement market so product price will be maintain and economic
level.

 A Sri Shabareesh agency has appointed As C & F agents for


their good selling performance. So these agencies should
maintain their good performance in selling of ACC cements.
 Sri Shabareesh should provide conveying service activities
to dealers.

96
 Sri shabareesh agencies should adopted different media of
advertising in shimoga city in addition to the effort of the
manufacturer.
 The prospective customer should be given promotional
benefit. There fore promotional efforts are to be taken in
effect continuously so that as prospective customer will
develop a linking towards the product.
 Sri Shabareesh agencies should have sufficient vehicle to
deliver the cement bag to the dealers who comes from
outside villages.
 Sri Shabareesh Agencies should give regular Service.

CONCLUSION

The finding of the survey is enough proof to show that


ACC cements ranks high in quality, composition etc., It is
observed that ACC cement has a maintained better product
image among the person who have used it and are using it.
The company has also vast network of salesmanship no doubt
these things will have a long way in improving not only product
image but also the corporate image. But in competitive field
one should not satisfy himself with present performance. In
order to maintain higher competitive efficiency there should be
continuous product planning and market improvement.

ACC cement producer and their dealers in shimoga city


may consider the preference analysis in the report and
suggestions given in the report for achieving higher standards
of marketing performance in the future.

97
Annexure

CONSUMER QUESTIONNAIRES
I am a student of final year BBM, Govt. First Grade College,
Shimoga. As apart of my BBM course. I have selected
“MARKETING OF ACC CEMENTS” A case study of Shabareesh
agencies, Shivamogga, kindly fill it up the questionnaire and give
suggestion for the study. The information supplied by you will be kept
conditional and will be used for only academic purposes

Your Sincerely
PARAMESHWARAPPA H.S

CONSUMER QUESTIONNAIRES

1. Name :

2. Address :

3. Occupation :

4. Annual Income:

a) Below 10,000 [ ] b) 10,000-15,000 [ ]


c) 15,000-25,000 [ ] d) Above 25,000 [ ]

98
5. Have you ever purchase cement?

a) Yes [ ] b) No [ ]

6. Which brand of cement do you purchase?

a) A.C.C. [ ] b) Indian Cement [ ]


c) Raashi [ ] d) Others [ ]

7. If you purchase A.C.C. what is your opinion?


1. Quality
a) Better [ ] c) Satisfactory [ ]
b) Good [ ] d) Not bad [ ]
2. Price
a) High [ ] c) Satisfactory [ ]
b) Low [ ] d) Not bad [ ]
3. Demand
a) Better [ ] c) Satisfactory [ ]
b) Good [ ] d) Not bad [ ]

8. Where do you purchase cement?


a) Shabareesh agencies [ ]
b) K.S.Narayana settee & sons [ ]
c) Salamath Enterprises [ ]
d) Sagar Traders [ ]

9. If you purchase in Shabareesh agencies, how do you come


to know about the Shabareesh agencies?
a) Friends [ ] c) Advertisement [ ]

99
b) Dealers [ ] d) Contractors [ ]

10. What are the factors which have influenced to buy ACC
cement?
a) Price [ ] c) Brand Image [ ]
b) Quality [ ] d) Door Delivery [ ]
11. Do you get any facilities?
a) Yes [ ] b) No [ ]

12. What is your opinion about regarding the regularity supply


from Sri Shabareesh agencies
a) Regular [ ] b) Irregular [ ]
c) Not bad [ ]

13. Will you recommend ACC cements to others?


a) Yes [ ] b) No [ ]

14. Are you satisfied with the service offered by the dealers?
a) Yes [ ] b) No [ ]
15. Any suggestions:
--------------------

Date:
Place: Signature

100
BIBLIOGRAPHY

Marketing Management By: Sherleker

Marketing Management By: Philep Kottler

Marketing and Salesmanship By: B.S Raman

News papers Business Line


Times of India

www.google.com
www.accindia.com

101

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