Acc

CALCUTTA BUSINESS SCHOOL

PROJECT REPORT

BY

Nazibul Rahaman

PGDM 2014-16

PROJECT

REPORT

ON

ACC LTD

Content PG NO

1. Introduction…………………………………………………. 1

2. Corporate Profile……………………………………………. 2

3. History………………………………………………………. 3

4. Products……………………………………………………... 4-5

5. SWAT Analysis……………………………………………... 6-7

6. BCG Matrix…………………………………………………. 8

7. Mapping Activity System…………………………………… 9

8. Balanced Score Card………………………………………… 10

9. Strategies…………………………………………………….. 11-13

10. Financial Analysis…………………………………………. 14-16

11. Mission, Vision…………………………………………….. 17

12. Recommendations………………………………………….. 18

13. Conclusion………………………………………………….. 19

Introduction

ACC cement is India's foremost manufacturer of cement and concrete. ACC's operations are spread throughout the country with 16 modern cement factories, more than 40 Ready mix concrete plants, 20 sales offices, and several zonal offices. It has a workforce of about 10,000persons and a countrywide distribution network of over 9,000 dealers. Since inception in 1936, the company has been a trendsetter and important benchmark for the cement industry in many areas of cement and concrete technology. ACC has a unique track record of innovative research, product development and specialized consultancy services. The company's various manufacturing units are backed by a central technology support services centre - the only one of its kind in the Indian cement industry. ACC has rich experience in mining, being the largest user of limestone. As the largest cement producer in India, it is one of the biggest customers of the domestic coal industry, of Indian Railways, and a considerable user of the country’s road transport network services for inward and outward movement of materials and products. Among the first companies in India to include commitment to environmental protection as one of its corporate objectives, the company installed sophisticated pollution control equipment as far back as 1966, long before pollution control laws came into existence. Today each of its cement plants has state-of-the art pollution control equipment and devices .ACC has made significant contributions to the nation building process by way of quality products, services and sharing expertise. Its commitment to sustainable development, its high ethical standards in business dealings and its on-going efforts in community welfare program have won it acclaim as a responsible corporate citizen. ACC’s brand name is synonymous with cement and enjoys a high level of equity in the Indian market. It is the only cement company that figures in the list of Consumer Super Brands of India

CORPORATE PROFILE

ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's operations are spread throughout the country with 17 modern cement factories, more than 50 Ready mix concrete plants, 21 sales offices, and several zonal offices. It has a workforce of about 9,000 persons and a countrywide distribution network of over 9,000 dealers.

Since inception in 1936, the company has been a trendsetter and important benchmark for the cement industry in many areas of cement and concrete technology. ACC has a unique track record of innovative research, product development and specialized consultancy services. The company's various manufacturing units are backed by a central technology support services centre - the only one of its kind in the Indian cement industry.

ACC has rich experience in mining, being the largest user of limestone. As the largest cement producer in India, it is one of the biggest customers of the domestic coal industry, of Indian Railways, and a considerable user of the country’s road transport network services for inward and outward movement of materials and products.

Among the first companies in India to include commitment to environmental protection as one of its corporate objectives, the company installed sophisticated pollution control equipment as far back as 1966, long before pollution control laws came into existence. Today each of its cement plants has state-of-the art pollution control equipment and devices.

ACC plants, mines and townships visibly demonstrate successful endeavours in quarry rehabilitation, water management techniques and ‘greening’ activities. The company actively promotes the use of alternative fuels and raw materials and offers total solutions for waste management including testing, suggestions for reuse, recycling and co-processing.

ACC has taken purposeful steps in knowledge building. We run two institutes that offer professional technical courses for engineering graduates and diploma holders which are relevant to manufacturing sectors such as cement. The main beneficiaries are youth from remote and backward areas of the country.

ACC has made significant contributions to the nation building process by way of quality products, services and sharing expertise. Its commitment to sustainable development, its high ethical standards in business dealings and its on-going efforts in community welfare programmes have won it acclaim as a responsible corporate citizen. ACC’s brand name is synonymous with cement and enjoys a high level of equity in the Indian market. It was the first cement company to figure in the list of Consumer SuperBrands of India.

History

ACC cement has an interesting story - one that inspired a book. ACC was formed in 1936when ten existing cement companies came together under one umbrella in a historic merger -the country's first notable merger at a time when the term mergers and acquisitions was not even coined. The history of ACC spans a wide canvas beginning with the lonely struggle of its pioneer F E Dinshaw and other Indian entrepreneurs like him who founded the Indian cement industry. Their efforts to face competition for survival in a small but aggressive market mingled with the stirring of a country's nationalist pride that touched all walks of life - including trade, commerce and business. The first success came in a move towards cooperation in the country's young cement industry and culminated in the historic merger of ten companies to form a cement giant. These companies belonged to four prominent business groups - Tatas, Khataus, Killick Nixon and F E Dinshaw groups. ACC was formally established on August 1, 1936. Sadly, F E Dinshaw , the man recognized as the founder of ACC, died in January 1936; just months before his dream could be realized.

F. E. Dinshaw – the founder of ACC 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. 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'.

PRODUCTS

The company manufactures Portland cement for general construction while its blended products, acknowledged for outstanding durability, include fly ash and slag-based cements .Both these varieties of cement offer high quality and special properties that defy the harshest environments. In addition to conserving valuable mineral resources and reducing waste, these blended cements also help cut down the emission of carbon dioxide and assist in checking global warming. ACC is sensitive to consumer needs .When the company realised that large construction activities would require large amounts of cement it set up the country’s first facility for distribution of cement in bulk, as far back as 1956.To meet the needs of other consumers it introduced cement in small25 kilogram bags as also jumbo bags of one metric tonne. Today, of course, mechanized mega construction projects receive cement from ACC delivered in bulk tankers – a welcome change from the conventional cement bag. ACC was also the first company in India to introduce Ready Mix Concrete on a commercial basis. A transit concrete mixer is now a familiar sight in India’s major cities. Ready Mix Concrete and Bulk Cement have enabled the construction industry to introduces phisticated practices for the speedy completion of large infrastructure projects

ACC manufactures the following types of cement, in addition to which, it provides Bulk Cement

(1)Ordinary Portland Cements43 Grade Cement (OPC 43 Grade) ACC Cement is the most commonly used cement in all constructions including plain and reinforced cement concrete, brick and stone masonry, floors and plastering. It is also used in the finishing of all types of buildings, bridges, culverts, roads, water retaining structures, etc .What is more, it surpasses BIS Specifications (IS 8112-1989 for 43 grade OPC) on compressive strength levels. ACC Cement is marketed in specially designed 50 kg bags.53 Grade Cement This is an Ordinary Portland Cement which surpasses the requirements of IS: 12269-53Grade. It is produced from high quality clinker ground with high purity gypsum. ACC 53 Grade OPC provides high strength and durability to structures because of its optimum particle size distribution, superior crystalline structure and balanced phase composition. It is available in specially designed 50-kg bags.

(2)Blended CementsFly-ash based Portland Pozzolana Cement This is a special blended cement, produced by inter-grinding higher strength Ordinary Portland Cement clinker with high quality processed fly ash - based on norms set by the company's R&D division. This unique, value-added product has hydraulic binding properties not found in ordinary . cements. It is available in specially designed 50-kg bags.

The advantages of using ACC Fly-ash based PPCIn concrete made from ordinary cements, moisture reacts with calcium hydroxide in concrete to form calcium bicarbonate, which leaches out of the concrete, leaving pores that reduce its strength. ACC Fly-ash based PPC has ingredients which react with calcium hydroxide to

form CSH gel, to provide additional strength, which actually makes the concrete grow in strength over the years. It also produces less heat of hydration and offers greater resistance to the attack of aggressive waters than normal Portland cement .|Portland Slag Cement This is a slag-based blended cement that imparts strength and durability to all structures. It is manufactured by blending and inter-grinding OPC clinker and granulated slag in suitable proportions as per our norms of consistent quality. PSC has many superior performance characteristics which give it certain extra advantages when compared to Ordinary Portland Cement It is available in specially designed 50-kg bags.

Speciality about ACC PPCCompared to OPC, ACC PSC imparts some important additional advantages•Reduction in free lime leaching.•Ultimate higher strength.•Improved workability, reduced bleeding as well as segregation and corrosion.•Denser, less permeable concrete, and mortar.

Bulk Cement Yet another first in our seven-decade history of cement in India has been the introduction of Bulk Cement, an alternative to bagged cement, which is of particular advantage to large consumers of cement. Internationally, the trend is to move cement more and more in loose form rather than bagged. In fact, over 90 percent cement in the USA, and other European countries is transported and sold in bulk, unlike in India, where only one percent is transported in bulk.

Advantages of using ACC BulkAssured quality•No handling from the factory to your site, therefore exact weight•Tamper proof delivery, therefore no adulteration possible•Immediate delivery, therefore no need to stock inventory•Order only when you are ready to use, so your money is not locked up•Steady supply

SWAT Analysis

SWOT Analysis explores the relationship between the environmental influences and the strategic capabilities of an organization compared to its competitors. The importance of SWOT is revealed by the value of the strategies it generates. A SWOT item that generates no strategies is not important.

Strength

· It is having a good image and brand loyalty among consumers.

• Service is good•“Dhalai karne ke liye” people ask for ACC•Perceived to be of very superior quality cement when compared to others• Selling form the very first day the shop came in to being & sells easily• They have same price prevailing for wholesale at dealers/stockiest retailers end

Weakness:

The competitors are doing much promotional activity rather than ACC Limited that’s why it facing more problems in selling of product in the market.

•Lack of awareness program for consumers.

Opportunities:

Rapid growth is taking place in Bihar and Madhya Pradesh.

•People are opting for more stable structures and intensive use of cement is taking place, even government is spending heavily on infrastructure projects. Thus, this is the right time to fully tap these markets.

• As Indian core industry is also growing at rate of nearly 10% per annum, it is having a good future.

•Foreign direct investment in infrastructure sector going to increase in coming years, which will increase the demand of cement.

•Roads are undergoing through the transformation process through which the traditional method of road building will be replaced by modern concrete roads.

THREATS:

•Large number of players in cement industry makes it more competitive for ACC to carefully price its product and at the same time satisfy its dealers and customers.

•Players such as Jaypee Cement, Prism Cement, and Birla Samrat are eating up considerable market share.

• Due to India’s exponential growth many new international cement companies are expected in coming years which will bring a tide of change and can start price war.

•The emergence of small players in this market may increase the competition and start the malpractices, and heavy discounts to retailers. They can also influence many retailers by giving better profit margin, and other Benefits.

BCG Matrix

Definition: the BCG Matrix is an early (1970) strategic portfolio management tool created by the Boston Consulting Group.The idea behind it is that to ensure long-term value creation, a company should have a portfolio of products that contains both high-growth products in need of cash inputs and low-growth products that generate a lot of cash.Placing the products of a strategic business unit  in 2 dimensions (market growth and market share) creates 4 quadrants and corresponding investment strategies:- Cash Cows (low market growth, high market share)- Stars (high, high)- Question Marks (high, low)- Dogs (low, low)

Mapping Activity System

Balanced Scorecard

The balanced scorecard (BSC) is a strategy performance management tool - a semi-standard

structured report, supported by design methods and automation tools, that can be used by

managers to keep track of the execution of activities by the staff within their control and to

monitor the consequences arising from these actions.

The critical characteristics that define a balanced scorecard are:

its focus on the strategic agenda of the organization concerned

the selection of a small number of data items to monitor

a mix of financial and non-financial data items.

STRATEGIES.A. High on quality, customer value and customer care

B . B r a n d i n g C . A d v e r t i s i n g D . O the r p romot iona l a c t i v i t i e s E . P a c k a g e s F . R e t e n t i o n m a r k e t i n g

A N A L Y S I N G O F   E X T E R N A L E N V I R O N M E N T

WE SEE FOLLOWING OPPORTUNITIES FOR OUR BUSINESS·As Indian core industry is also growing at rate of nearly 10%per annum, it is having a good future.· Foreign direct investment in infrastructure sector going to increase in coming years, which will increase the demand of cement.· Roads are undergoing through the transformation process through which the traditional method of road building will be replaced by modern concrete roads.4)G a p A n a l y s i s : As the main aim is to satisfy the customer demand so it should see that the gap between the customer and organization is properly build up.

5)F r a m i n g A l t e r n a t i v e s t r a t e g y :Af te r mak ing t he gap and SWOT ana ly s i s t he company should accomplish the objective of the firm.6)C h o o s i n g t h e s t r a t e g y : follows focus strategy as its main aim is to go worldwide.

 II) STRATEGIC EVALUATION

1) FORMULATION OF PLANS, PROGRAMMES AND PROJECTS If you are a line manager or functional expert, overseeing a number of businesses, profit center or operating units, you are likely to be facing tough challenges. It is hard to add value and easy to make things worse.Group Level Strategy is a unique opportunity for you to rethink your role in creating value. Based on the ground-breaking16ACC CEMENT research of Andrew Campbell and Michael Gold, the programme is about your job at its most visible: fundamental choices that affect business performance.

2) PROJECT IMPLEMENTATION:-ACC has a unique track record of innovative research ,product development and specialized consultancy services. With more than seven decades of rich experience in prospecting for raw materials, mining, setting up and managing cement plants of different sizes, technologies and processes. We are proficient in managing captive thermal power plants and now also have a few power plants based on wind energy. Our large team of talented scientists, engineers and technocrats are experienced in meeting the needs of the cement industry both in India and in many other countries.

3) PROCEDURAL IMPLEMENTATION:- The cemen t p l an t s o f ACC L td a r e l oca t ed i n various regions of the country in a number of states. The gadgets and equipments are of high standards and comply with the international standards. Presently, there are around 12 cement plants of ACC Ltd which cater to the different market segments of the country. The cement plants work in coordination with each other and also independently to increase the share in the market. All the ACC Ltd. Cement Plants use the cutting edge technologies and services which in turn p r o d u c e h i g h q u a l i t y c e m e n t b r a n d s . S e t u p i n t h e y e a r 1 9 3 6 , A C C h a s a l w a y s w o r k e d dedicatedly to produce some of the

best brands of cement and its business strategy is based on p rov id ing t he be s t o f p roduc t s t o t he chang ing consumer marke t i n t he coun t ry and t he world. The following table provides a general idea of the ACC Ltd. Cement Plants

4)RESOURCE ALLOCATION:- All the ACC Ltd. Cement Plants use the cutting edge technologies and services which in turn produce high quality cement brands. Set up in the year 1936, ACC has always worked dedicatedly to produce some of the best brands of cement and its business strategy is based on providing the best of products to the changing consumer market in the country and the world.

5)STRUCTURAL IMPLEMENTATION

The cement plants of ACC Ltd are located in various regions of the country in a number of states. The gadgets and equipments are of high standards and comply with the international standards. Presently, there are around 12 cement plants of ACC Ltd which cater to the different market segments of the country. The cement plants work in coordination with each other and also independently to increase the share in the market. .6) FUNCTIONAL IMPLEMENTATION:- The high quality cement that is manufactured and exported by ACC Ltd is produced in the ACC Ltd. Cement Plants. ACC Ltd is one of the frontrunners in the cement industry in India and produces some of the best quality cement in the country. It has a significant market share in the segments of housing, real estate, infrastructure and other development projects. With more and more developmental projects coming up, the profit and the market share of the company is expected to rise at a considerable rate.

7) BEHAVIOURAL IMPLEMENTATION:-The reaction of the employee and customer can be imp lemen ted  i . e .   e i t he r   pos i t i ve  o r   nega t i ve .   depends  upon   t he  p ro j ec t s  whe the r   i t  was customer oriented or company related.

III) STRATEGIC EVALUATION:-

1.SETTING OF STANDARDS As per the standards set by the company the employees has to function. Along with the standards the company should not forget it ultimate objective or goals.

2.MEASUREMENT OF PERFORMANCES:-The set standards are then measured with the actual performance.

3.COMPARISON OF ACTUAL STANDARD WITH STANDARDS:-the comparison after measuring is evaluated on the bases of performance which can positive or negative . it means the deviating in achieving the targets.

4.Analysing the deviation for eg:- the standards was to produce 1000 units but actual production is 900 the it is called negative deviation.so it should kept in mind while evaluating a performance .

5.Taking corrective measures:-after doing all evaluation the proper measures are required to be taken

Financial Results

Consolidated Unaudited Results for the Quarter and Nine Months Ended September 30, 2014

Mission

ACC Ltd. drives their mission statements from a particular set of tasks. They are called upon to perform in the light of their individual, national or global priorities .Indian Cement industry into a Globally strong and competitive industry

Vision

To be one of the most respected companies in India ; recognized for challenging Conventions and delivering on our promises.

RECOMMENDATIONS

ACC CEMENT is highly focused on its future objectives & expansion plans, butat the same time it has to maintain a balance between the present plan &the future one. On the basis of strategic analysis following recommendations will help in achieving its future goals effectively & efficiently:-

• ACC LTD must focus on its Vision & Mission in order to attain its objective.

• ACC LTD should focus on expanding its market in order to grab the market shares.

• It should also try to maximize the shareholders’ wealth.

• ACC LTD should not choose those project which may dilute the brand name just for the sake of gaining market shares.

• It should focus on to convert itself from Question Marks to Stars.

•ACC LTD has a high growth potentials, so it should try to raise funds timely in order to meet its target.

• ACC LTD should not do overpromise as it will deteriorate its goodwill.

• ACC LTD must focus on its competitors’ strategy in order to gain a competitive edge

CONCLUSION

Keep ing  pace  w i th   chang ing   t imes   and   an   eve rg rowing  need   fo r  spec i a l i z ed s e r v i c e s ,   A C C   h a s   b e g u n   o f f e r i n g   i t s   m a r k e t i n g   e x p e r ti s e   a n d   d i s t r i b u t a r i e s facilities to other producers in cement and related areas. However a precondition of all such agreement is quality control supervision to be carried out by an ACC expert located at the franchisee’s plant.

Each of the regional Marketing offices has a customer services cell that is manned  by  qua l i f i ed   c iv i l   eng inee r s .  These ,   i n   add i t i on   t o   hand l i ng  a f t e r - s a l e s se rv i c ing , f unc t i on a s adv i so ry bod i e s t ha t c an he lp cus tomer s , make t he r i gh t choice of cement for a specific area of application. ACC can provide expert advice on getting the best value from cement and offer assistance on related issues in civil construction projects.

B e s i d e s   t h i s ,   t e c h n i c a l   b o o k s / b o o k l e t s   o n   c e m e n t ,  c o n c r e t e   a n d   b u i l d i n g construction and maintenance are regularly must be available for the benefit of  the customers. In addition to this, ACC also publish free booklet, which profiles the latest information on concrete research, design, construction and maintenance.Thus to conclude it can be said that ACC cement has its branches spread all over IndiaACC Limited company product are the profitable not only in India but also in the whole world.