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 Ms./Mr. Faculty M.B.A. (Dept.)

Submitted By: Sunny Sharma M.B.A. II 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 cooperation 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

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. Its 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. 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 chemists 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. 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. Dinshaws 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 Indias 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 moues 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, 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.

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. Dinshaws 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 Indias 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 moues to facilitate transfer of technologies and Access to export and market. Associated cement companies was constituted in year 1936 under Indian govt. act 1936.

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

Region (North)
LAKHERI

GAGAL
TIKARIA

Region (East)

DCW SIND RI

KYMORE

CHAIBA SA
BARGARH

CHANDA

JAMUL

WADI

Region (South West)

MADUKKARAI

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 9

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 ACCsunita core competencies and knowledge base in cement refectories advanced material engineering geology mining and research. ACCs Vision vividly declares the companys 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 community. 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

Value Creation ACC delivers long term values to i nvestors and to other shareholders ACC is a great ACC is a place to work. customer driven ACC has HR org. policies which promote a healthy work place. ACC has employees who are ACC rewards committed to employees well ACC is a delivering ultimate based on learning org. customer profitability and satisfaction. performance. ACC is alert to the ACC inspires changes in ACCtrust and is the most ACC cares for its business respect. in preferred brand employees welfare. environment and India. ACC is a trusted respond and ethical org. effectively. ACC adopts world class business practices to surpass global benchmarks. ACC develops employees through need based learning. ACC is committed to environment protection and well being of the community.

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.

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BUSSINESS STRATEGY 2007 2008 2009 2010 2011

Market Share

Maintain leadership position in the industry.

Competitiveness

Leadership in quality, services and cost efficiency.

Organization

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.

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Bottom Line

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 Companys Cement Works & its slag granulation plant. The Cement plants are a) Bhupendra Works d) Gagal Works g) Lakheri Works j) Sindri Works b) Chaibasa Works e) Jamul Works h) Madukkarai Works k) Wadi Works c) Chanda Works f) Kymore Works i) Mancherial Works

The division consists of the following departments sections: a) Factory Operations c) Mining Machinery e) Railway Liaison g) Environment & Pollution Control b) Major Repairs d) Audit & Administration f) Safety

2) FINANCIAL DIVISIONS The division is responsible for all accounting & financial functions. This is addition, takes care of the taxation function, the Companys Provident Fund & Insurance. All receipts, development & monitoring of funds is done by this division. This comprises of following sections:

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a) Corporate Tax and Insurance b) Payrolls, Provident Funds & Officers Superannuation Funds. 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 buyers market & in order to meet the competition the Cement Marketing Division has taken the following steps to retain the companys share as a market leader:i) The company has appointed a network of 10,000 stockiest in all rural urban markets

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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.

iii)

The company has customer service cells in the North, South, East & West regions to attend all kind of customers 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 Indias 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. 15

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

7) DOMESTIC AND INTERNATIONAL TRADING DIVISION This division is the marketing trust for the companys non cement business. The scope of the division includes explores, marketing of franchised & allied products manufactured by ACCs 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 companys 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) b) c) d) e) Process Engg. & Design Civil Engineering Electrical & Instrumentation Engineering Projects Execution Group Project Services

9) INFORMATION SYSTEMS DEPARTMENT The IS departments basic function are to provide adequate & efficient computer services at the Corporate Office Works & RMOs 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) b) Property matters Building Maintenance Services

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c) d) e)

Maintaining Inventory of furniture & furniture etc. Communication Services Vehicle Procurement & maintenance

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. RCDs expertise covers the following areas of specialization: a) b) c) d) e) f) g) h) i) Cement & Mineral Projects Geology, Environment & Mining Erection & Construction Refractories & Development Agri-horticultural & Rural Development Management Training Environment Management Advanced Management Advanced Materials

Today, RCDs services offered are even more broad based, catering to industries like cement, refractory, ceramics, chemical, minerals processing, petrochemical, fertilizers, ferrous & non ferrous among others.

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ACC LTD. PROGRAMS Company is running various system programs which provide the valuable system to the workers to show their job efficiently. 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. ACCs 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

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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. 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 onefourth 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, Mumbai400020.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

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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 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 1936 1937 1944 1947 1952 1955 1956 1957 1957 1961 1961 1961 1961 1962 1965 Incorporation of The Associated Cement Companies Limited on August 1, 1936. First Board Meeting of The Associated Cement Companies Limited held at Esplanade House, Mumbai on November 10, 1936. With the transfer of the 10th company to ACC, viz. Dewarkhand Cement Company, the formation of ACC is complete on October 23, 1937. ACCs first community development venture near Bombay Indias first entirely indigenous cement plant established at Chaibasa in Bihar Village Welfare Scheme launched Sindri cement works used the waste product calcium carbonate sludge from fertilizer factory at Sindri. Bulk Cement Depot established at Okhla, Delhi Technical training institute established at Kymore, Madhya Pradesh. Katni Refractories Blast furnace slag from TISCO used at the Chaibasa Unit to manufacture Portland Slag Cement for the first time in India. Manufacture of Accocid Cement, which resists the corrosive action of acids and chemicals. Oil well Cement manufactured at ACC Shahabad Cement Works in Karnataka for cementation of oilwells up to a depth of 6,000 feet. Manufacture of Hydrophobic (waterproof) cement at ACC Khalari Cement Works in Bihar. Manufacture of Accoproof, a waterproofing additive. ACCs Central Research Station (CRS) established at Thane

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1965 1965 1968 1968 1971 1973 1977 1978 1979 1982 1984 1987 1992 1993 1998 1999 1999 2000 2001 2002 2003 2004

Manufacture of Portland Pozzolana Cement. Manufacture of Calundum, a High Alumina Binder; Firecrete, Low Density Alumina Castables and High Alumina Refractory Cement. Advent of computers in ACC for data processing and designing management information and control systems. ACC supplied and commissioned one-million-toner iron ore pelletising plant ordered by TISCO Manufacture of Whytheat Castables A, K, C and Cal-Al-75 Take-over of The Cement Marketing Company of India (CMI) ACC receives ASSOCHAM first national award for the year 1976 instituted for outstanding performance in promoting rural and agricultural development activities. 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. ACC wins international contract for operation and management of a new one million tonne cement plant at Yanbu-Ras Biridi in Saudi Arabia. Commissioning of the first 1 MTPA plant in the country at Wadi, Karnataka. ACC achieves a breakthrough in import substitution by developing and supplying a special G type of oil well cement to ONGC. ACC develops a new binder for use at sub-zero temperatures, which is successfully used in the Indian expedition to Antarctica. Incorporation of Bulk Cement Corporation of India, a joint venture with the Government of India. ACC starts the commercial manufacture of Ready Mixed Concrete at Mumbai. Commissioning of the 0.6 MTPA cement grinding unit at Tikaria, Uttar Pradesh. Commissioning of captive power plants at the Jamul and Kymore plants in Madhya Pradesh. Tata group sells 7.2% of its stake in ACC to Ambuja Cement Holdings Ltd, a subsidiary of Gujarat Ambuja Cements Ltd. (GACL) 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. Commissioning of the new plant of 2.6 MTPA capacity at Wadi, Karnataka plant, the largest in the country, and among the largest sized kilns in the world. ACC wins PHDCCI Good Corporate Citizen Award IDCOL Cement Ltd becomes a subsidiary of ACC IDCOL Cement Limited is renamed as Bargarh Cement Limited (BCL).

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2004

ACC raises US $ 100 million abroad through Foreign Currency Convertible Bonds (FCCBs) for US$ 60 million and Global Depository Shares (GDSs) for US $ 40 million. Both offerings are listed on the London Stock Exchange. ACC named as a Consumer Superbrand by the Superbrands Council of India, becoming the only cement company to get this status. 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. ACC receives the CFBP Jamnalal Bajaj Uchit Vyavahar Puraskar Certificate of Merit 2004 from Council For Fair Business Practices. 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, ACILs shareholding in ACC increases to 34.69 % of the Equity share capital of ACC. 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. Financial accounting year of the company changed to calendar year JanuaryDecember

2004 2004

2005 2005

2005

2005

2006 2006 2006 2006 2006 2006

Subsidiary companies Damodhar Cement & Slag Limited, Bargarh Cement Limited and Tarmac (India) Limited merged with ACC ACC announces new Workplace policy for HIV/AIDS Change of name to ACC Limited with effect from September 1, 2006 from The Associated Cement Companies Limited. ACC receives Good Corporate Citizen Award 2005-06 from Bombay Chamber of Commerce and Industry New corporate brand identity and logo adopted from October 15, 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

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Nadu 2007 Sumant Moolgaokar Technical Institute completes 50 years and reopens with new curriculum 2007 2008 ACC commissions Wind energy farm in Tamilnadu. Ready mixed concrete business hived off to a new subsidiary called ACC Concrete Limited. 2008 2008 2008 ACC Cement Technology Institute formally inaugurated at Jamul on July 7. First Sustainable Development Report released on June 5. ACC wins CNBC-TV18 India Business Leader Award in the category India Corporate Citizen of the year 2008

AWARDS & ACCOLADES ACC was the first recipient of ASSOCHAMs 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

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 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. 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

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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 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

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 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 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 Year 1936 1947 1955 Achievement The Associated Cement Companies Limited incorporated on August 1 India's first entirely indigenous cement plant installed at Chaibasa. ACC Sindri uses waste material - calcium carbonate sludge -from fertilizer factory at Sindri to make cement

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1956 1961

Bulk Cement Depot established at Okhla, Delhi Blast furnace slag, (a waste by-product from steel) from TISCO used at ACC Chaibasa to manufacture Portland Slag Cement. Oilwell Cement manufactured at ACC Shahabad for cementation of oilwells upto a depth of 6,000 feet. Manufacture of Hydrophobic (waterproof) cement at ACC Khalari. Manufacture of Portland Pozzolana Cement using naturally available materials. An eco-friendly cements using an eco-friendly process. ACC inducts use of pollution control equipment and high efficiency sophisticated

1961 1961 1965

1966

electrostatic precipitators for its cement plants and captive power plants decades before it becomes mandatory to do so.

1978

Introduction of the energy efficient pre-calcination technology for the first time in India. Commissioning of the first 1 MTPA (million tonne per annum) plant in the country at Wadi, Karnataka. ACC achieves a breakthrough in import substitution by developing and supplying a special G type of oil well cement to ONGC. ACC develops a new binder, working at sub-zero temperature, which is successfully used in the Indian expedition to Antarctica. Incorporation of Bulk Cement Corporation of India, a JV with the Government of India. Commercial manufacture of ready-mixed concrete at Mumbai. Commissioning 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.

1982

1984

1987

1992 1993 2001

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Supply of High Performance Concrete of M -75 grades to JJ Flyover in Mumbai 2002 becoming first time in India to supply concrete of such high strength level for use in a mega construction project. Commissioned Asias largest Tube Conveyor of 2.5 kms for transportation of 2005 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 Companys 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 Companys 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 29

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, companys 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 companys 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

30

professional style of management based on philosophy of the best in business ethics.

PERFORMANCE MANAGEMENT:The Companys 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 to of Appreciation, Special Increments, Promotions, Nomination 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. ACCs new Performance Management System incorporates a linkage between an individual employees performance indicators with the organizational goals which allows the employee to see his or her role in contributing to achieve the organizations objectives. Training is imparted to take care of an individuals 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:-

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 People are treated fairly regardless of religion and gender ACC is a safe place to work Management is competent in running business Employees feel good about what we do for society Proud to tell others I work here Management thinks positively The overall findings show significant job satisfaction at all levels as also deep respect for the Company, its performance management system and its overall business performance. 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 1. NAME OF DIRECTOR NATIONALITY

MR.N.S.SEKHARIA (CHAIRMAN)

INDIAN

2.

MR.PAUL HUGENTOBLER CHAIRMAN)

(DEPUTY

SWISS

3. 4. 5. 6. 7. 8. 9. 10.

MR.SUMIT BANERJEE (MANAGING DIRECTOR) MR.A.L.KAPUR MR.S.M.PALIA MR.NARESH CHANDRA MR.MARKUS AKERMAN MR.D.K.MEHTROTRA MR.R.A.SHAH Dr.NIRMALYA KUMAR

INDIAN INDIAN INDIAN INDIAN SWISS INDIAN INDIAN INDIAN

32

11. 12. 13.

MR.SHAILESH HARIBHAKTI MR.ANIL SINGHVI MR.A.K.JAIN DIRECTOR) (WHOLETIME

INDIAN INDIAN INDIAN

ENVIRONMENTAL POLICY OF ACC LTD. Ensure continual improvement in environmental performance by

carrying out periodic review of action plan. Prevent pollution and Comply with all minimize fugitive emissions. regulatory requirements.

applicable legal and

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.

33

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 companys 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.

ACCs Head Office - Cement House, 121 Maharshi Karve Road, Mumbai. ACCs 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, Queens Road, and 34

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 environmentfriendly building. Its attractive refurbished faade 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

35

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. ACCs marketing, sales and distribution processes are industry standards. Although we take immense pride in having supplied some of Indias most admired projects, ACC is essentially a peoples 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

36

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

37

 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

38

 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 1. Provide Safe working Condition 2.Provide system for the safe control of work 2. Immediately report any unsafe condition/hazard EMPLOYEES 1.The care of oneself and colleague

39

3. Supply information on work h Azard 4. Arrange adequate training and instrucyion in safe working practices 5. Make appropriate protective clothing and equipment available 6. Punish people violating instructions on safety and health

3. Look out for hazards and potential dangers to self and others 4. Do not take any short cuts

5. Know the safety guidelines and follow working instructions 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. MANPOWER 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
Manage covers 345 bighas and the mining area is about1633 bighas. TheNontopography of the area around ment Top Mgmt. TM the worksis mount-rainouts.Mean maximum temperature of the area goes upto 45 degree Celsius Management Staff Staff in the month of June and the minimum temper- ature upto 3-degree in the month of December. WM -Works The work has generated direct and indirect employment to the scale of nearly 12000. Nearby MONTHLY Manager Towns: Bilaspur, Sunder Nagar, Mandi. PAID E4 - Sr. Manager DAILY PAID Grades MANPOWER ARRANGEMENT E3 - Manager TC The total manpower Deputy at ACC, Gagal Cement works are divided into 2 categories. employed E2 Grades I Manager Management Staff is governed by Conduct Rules framed by the company whereas NonA II Management Assistant by Standing Orders certified under the Industrial Employment Staff is governed E1 B Manager (Standing Orders) Act, 1946 III C M3 Senior IV Officer/Engg. D 40 V M2 Officer/ E Engineer VI

M1 Junior Officer/Engineer M Asst. Officer/Engineer ORGANIZATIONAL STRUCTURE

VII

ACCs 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. BOARD OF DIRECTOR S

MANAGING DIRECTOR

ACC Concrete Ltd.

Business Head North

Business Head South & West Region

Business Head East Region

Managin g Commit tee Chief Fin. Corpora te Commerci al Central Procure Tech. Support Operati on 41

OH & S

Raw Material &

Alternate Fuels &

Legal

Secretarial &

Chief Knowled

Overseas Project & Consultancy

Communica tion & CSR

Business Developme nt & Planning

Internal Audit

To enable better coordination of the organizations 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.

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CONTRIBUTION TO GOVERNMENT 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. 43

ENVIRONMENTAL POLICY 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

44

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 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.

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13 Coal Mill Building. 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

46

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. 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.

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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 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.

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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 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.

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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. 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

50

II packing pant with a capacity of 180 TPM each. All the packers have truckloading 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) 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 Trucks 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. 51

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. 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.

ISD

IT Infrastructure

Reporting

Servers

Deskto ps

Printers

Networkin g

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 Information System Department is looking after the Plants 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.

Desktop part consists of Local PCs available with each computer users connected on the network. It consists of different part like CPU, Monitor, Keyboard and Mouse. Printers 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.

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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 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: 54

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 1 2 3 4 Descriptive research Analytical research Qualitative research 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 2 3 4 Consumer needs. Consumers preferences for brand. In depth under standing of consumers. Availability for consumer.

QUANTITATIVE RESEARCH:-

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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: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-toface interaction & interview from various Retailers in the filed area of Palampur.

2. ORGANISATION OF DATA: 56

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: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.

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RATIO ANALYSIS OF ACC:ANALYSIS OF SHORT TERM FINANCIAL POSITION OR TEST OF LIQUIDITY: 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 tiedup 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 firms 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

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to as a bankers 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 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 CURRENT LIABILITIES QUICK RATIO = 1349.33Cr. = 2741.29Cr. = 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 firms 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

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CURRENT ASSETS

= 2741.29Cr.

ABSOLUTE LIQUID RATIO = 0.361:1 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 AVG. STOCK = 7,308.62Cr. = 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

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INTERPRETATION OF INVENTORY CONVERSION PERIOD: 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.

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 CREDITORS TURNOVER RATIO: CREDITOR TURNOVER RATIO = NET CREDIT ANNUAL PURCHASE/ AVG. TRADE CREDITOR NET CREDIT ANNUAL PURCHASES = 1473.37Cr AVERAGE TRADE CREDIRORS CREDITORS TURNOVER RATIO = 1422.80Cr = 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

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ratios indicate a firm ability to meet the fixed the interest and costs and repayments schedule associated with its long term borrowings. (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.

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(3).PROPREITORY OR EQUITY RATIO: PROPREITORY OR EQUITY RATIO=SHAREHOLDERS FUNDS/TOTAL ASSETS X 100 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

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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: 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 2. 3. 4. 5. ACC Cements Ltd. Ambuja Cements Ltd. J.P. Cements Ltd. UltraTech Cements Ltd. J.K. Cements etc.

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

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Sr. No. 1 2. 3.

Name of Company

No. of Dealers/Retailers

ACC Cements Ltd. Ambuja Cements Jay Pee Cements Others

14 9 5 2

No of Retailers of Cements in Palampur Area No. of Retailers 16 14 12 10 8 6 4 2 0 ACC Cements Ltd. Ambuja Cements Ltd. JP Cements Ltd, Others

No. of REtailers

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

Name of Company

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

ACC Cements + Ambuja Cements + JP Cements + Others = Total 14 + 9 + 5 + 2 = 30

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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.)

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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

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

JP Cements Ltd. 28%

ACC Cements Ltd. 39%

ACC Cements Ltd. Ambuja Cements Ltd. JP Cements Ltd.

Ambuja Cements Ltd. 33%

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:

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For this research methodology, I have collected data from the market area of Palampur SubDivision of District Kangra, H.P. and with the help of annual reports, balance sheets and other companys 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 70

 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

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.

0.50:1 which should be

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.

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THREATS
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 outsiders 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

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

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Conclusion : 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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