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    09-04-07/SSA/DJ

    Clinker factor Reduction

    R J Modi

    5thNov 2012

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    ACC Limited 1

    Our journey towards moon ACC ACC - Sep YTDYTD Best performing plant

    Baseline2011

    ACC Moon

    PPC clinkerfactor (Percent)

    1

    3100 2900

    2926

    Thermalenergy (Mj/tClinker)3

    73.5 61.063.273.3Electricalenergy(kwh/t clinker)4

    41.4 32.034.441.0Electricalenergy(kwh/t grind)5

    60.0 85.082.158.3CPP PLF(Percent)

    6

    3081

    67.0 60.065.5 62.0

    PPC clinkerfactor (Percent)

    2 46.3 40.044.18 41.1

    Significantprogress inclinker factor,thermalenergy

    But nosubstantialimprovementin electricaland CPP PLF

    At monthlylevelperformance,

    few plantshave alreadyachievedbreakthroughperformance

    60.9

    39.6

    2918

    60.5

    33.9

    82.5

    Sep Best performing plant

    Board Presentation

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    3

    ACC-Q&PD,Thane 02.11-2012

    Why SPC?

    Appraisal Costs

    Verification Quality Audits Inspection

    Equipment Vendor rating

    Failure Costs

    Scrap Rework & rectification Re-inspection Downgrading Waste Failure analysis Customer complaints Warranty claims Liability Loss of goodwill

    Prevention Costs

    Quality planning Quality assurance Inspection Cost Training

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    4

    ACC-Q&PD,Thane 02.11-2012

    Data Gathering

    Raw Mix Pyro

    Input

    OutputCement

    Grinding

    Input

    Output

    Input

    Process ControlVariables

    Process ControlVariables

    Process ControlVariables

    Output

    QualityAssuanran

    ceInterface

    Flow of Process

    Quality Parameters for which Cpk value to be

    measured

    Raw Material

    Preparation

    LSF / TC

    R90 Mic/ R212 Mic

    Kiln FeedLSF / TC

    R90 Mic / R212 Mic

    MgO

    ClinkerFree Lime

    LSF

    MgO

    CementSO3

    R45 Mic

    Blaine (PSC)

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    5

    ACC-Q&PD,Thane 02.11-2012

    Daily Weekly MonthlyEvery Shift

    Review Mechanism

    Process

    EngineersShift Operators PPE Head - Production

    Process Engineer to

    update process control

    chart . They should

    discuss variations in

    control charts with the

    Operator during the shift

    and log the corrective

    action to be taken toeliminate assignable

    causes

    . The process

    control charts to be

    displayed inrespective control

    room.

    Analyze the charts

    with the help of

    process engineers.

    Handover the charge

    to the next shift

    operator explaining

    him about the

    variations andcorrective action

    taken.

    On daily basis review

    control charts and

    plan for effective

    corrective action in

    the process and

    equipments.

    To hold weekly review

    meetings with Process

    engineers and operators

    and ensure

    implementation of the

    acion plan. Development

    of Control plan and

    Preparation of SOPs isresponsibility of

    Production Dept.

    Plant Head

    To review progress on

    monthly basis with the

    team and present status inregional monthly review

    meetings.

    0.35

    0.45

    0.55

    0.65

    0.75

    0.85

    0.95

    1.05

    1 3 5 7 9 11 13 15 17 19 21

    ParameterValue

    Value X avg UCL LCL

    Signal

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    Reading the heat maps performance snapshot (1/2)

    SCCC EE EXAMPLE

    6

    Raw meal preparation

    Clinker production

    Cement grinding

    Opportunities Reduce false air % Raise kiln NAI

    Start tracking fanefficiency in S2 (PH,Baghouse, Coal mill)

    Opportunities

    Room to raise powerabsorption in mills and

    pregrinder/roller-presses Raise MTBF PRI needs to be further

    raised Start tracking false air and

    fan efficiency in S2

    SEEC

    upto

    Cement

    grinding

    SEEC

    (raw

    mate-

    rial

    prepara

    tion)

    SEEC

    (raw

    meal

    prepa-

    ration)

    SEEC

    (clinker

    produc-

    tion)

    SEEC

    (cement

    grinding)

    Plant name kWh/t

    cementkWh/t

    clinkerkWh/t

    clinkerkWh/t

    clinkerkWh/t

    cement

    Saraburi 1 - 1.20 - - 55.23

    Saraburi 2 90.12 1.55 28.13 23.07 40.91

    Saraburi 3 93.17 1.15 28.86 32.98 40.29

    Raw

    millsMTBF,

    hPRI, % NAI,

    %False

    air, %Fan

    eff, %

    Power

    factor

    Sara 2 22.28 95.50 92.41 54.00

    Sara 2 18.05 93.90 89.77 31.00

    Sara 2 27.58 101.40 93.26 9.00

    Sara 2 24.28 98.68 92.06 65.00

    Sara 3 27.04 87.71 97.50 23.60 67.50 0.85

    Kiln MTBF,

    hPRI, % NAI,

    %False

    air, %

    PH1 fan

    eff, %

    Sara 2 961.94 100.50 81.11 10.82

    Sara 2 674.55 101.24 95.89 10.11

    Sara 3 321.85 94.09 88.49 9.30 66.91

    Cem-

    ent

    mills

    Power

    absor-

    bed, %

    MTBF,

    hPRI,

    %NAI,

    %Power

    absorbed

    (PG/RP), %

    Sara 1 82.50 124.54 90.14 96.33 88.00

    Sara 2 84.70 157.18 80.34 98.23 57.90

    Sara 2 83.80 96.41 77.59 98.04 56.90

    Sara 2 81.30 74.09 73.55 97.65 45.20

    Sara 3 80.70 138.41 84.11 92.33 71.00

    L2 - Colour coding is based on ranking across all the plants inregion. Top 20% Green, Next 40% Yellow, Next 40% Red

    Cement grinding metrics Based on technical standards

    L3 Ball mills and vertical mills have different colour codingthresholds

    Opportunities Raise MTBF with better

    maintenance Monitor and raise power

    factor Start tracking power factor

    in S2 Lower false air % Monitor/ improve fan

    efficiency

    L3L2L1

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    Reading the heat maps performance snapshot (2/2)

    Short title, Department, Name/Function or Event/Creator, Date yymmdd, Classification

    Opportunity to increase AF, AR consumption by increasing the design capacity of plants working at about 100% design capacity utilization (Ambujanagar 1)

    High potential savings through sourcing and increasing AR utilization in plants having good design capacities (Darlaghat, Rauri)

    Definition of the

    parameterSpecific GAV TSR TEE

    Capacity utilization - AF Capacity utilization - AR

    OverallSpecific

    stock -

    AF

    OverallSpecific

    stock -

    AR

    Overal

    l

    Design

    Capa-

    city

    Design

    Capa-

    city

    utiliza-

    tion

    Planne

    d

    utiliza-

    tion

    wrt to

    availa-

    bility

    in

    region

    Overal

    l

    Design

    Capa-

    city

    Design

    Capa-

    city

    utiliza-

    tion

    Planned

    utiliza-

    tion

    wrt to

    availa-

    bility

    in

    region

    Units Rank CHF/

    tons of

    Clk.

    % % tons/

    000' t

    clk.

    % % % tons/

    000' t

    clk.

    % % % tons/

    000' t

    clk.

    tons/

    000' t

    clk.

    Plant name 4.78 30% 16% 137.81 404% 271% 883% 148.08 361% 132% 100% 5370.88 36705.00

    Ambuja Nagar 1 11/26 0.34 4.3% 1.7% 22.02 78.0% 143.7% 26.4% 0.0 23.4%

    Ambuja Nagar 2 14/26 0.23 1.0% 0.9% 8.54 13.9% 31.8% 4.8% 0.0 60.0%

    Bhatapara 1 15/26 0.22 0.2% -0.1% 0.00 0.0

    Bhatapara 2 13/26 0.33 0.6% 0.3% 0.00 0.0

    Darlaghat 16/26 0.21 0.9% 0.7% 12.52 17.4% 270.8% 98.8% 83.5 7.5% 129.7% 17.5% 1.54 5.08

    Maratha 23/26 0.06 1.3% 0.4% 0.00 122.2% 8.7% 0.0 20.8%

    Rabriyawas 25/26 0.00 0.5% 112.1% 73.2%

    Rauri 24/26 0.02 NA NA 0.00 68.6 3.0% 34.8% 34.8% 1.67

    Performance 2012 Jun YTD data

    ACL GEOCYCLE EXAMPLE

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    Reading of heat maps Practices snapshot (2/2)

    Quality of RM

    Storage and

    handling of

    RM

    Feeding

    Grinding

    Others

    Oranization

    Performance

    management

    Technology

    Plant can

    improve clinker

    factor with little

    capex by

    improvingavailability and

    storage of raw

    materials

    Technology can

    be an important

    lever to

    increase clinker

    factor, but will

    need capex

    Practice (L2) Score

    Periodic assessment to improve availability of micro fine fly ash (dedicated

    grinding mills for available fly ash, assessing new sources)

    Minimize usage of aged raw material by using FIFO, traceability

    No open storage of clinker, gypsum and other raw material with clear

    demarcation for different types to avoid mixing

    Maintain fly ash and cement homogeneity with blending arrangements

    Monthly optimization of grinding aid dosing rate

    Increase degree of automation for fly ash / slag / additive feeding system

    using DCS to control dosing

    Optimizing mill efficiency using periodical regrading or top ups of the grinding

    media, longtitudinal sieving and circuit sampling every 15 days

    Optimizing SO3 in cement using frequent sulphation tests

    Ensure exhasutive SLAs between GU and mother plants to ensure quality of

    clinker supply

    Benchmarking of CF across products every quarter

    Dedicated cross functional team with a champion on clinker factor

    Separate team in the plant that is focused determine and developing alternate

    sources of mineral components

    Review of clinker factor such as in daily operations review, weekly by Head

    Plant Operations, monthly by Plant Director

    Training calendar and rewards and recognition mechanism

    Plants spend time and resources to explore / study impact of technology

    changes in mineral component drying, separate grinding of mineral

    components, blending and mixing, flyash separation

    Sample L3 practices (not exhasutive)

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    ACC Limited 9

    Academy approach being used to drive performanceimprovement & capability building across plants

    Dedicated COEchampions

    Module &Handbook

    Heat Maps

    Facilitation of

    plantexcellenceprojects

    Model Plant

    Key activities

    8 full time (3 for EE, 3 for CF & 2 for CPP) has been nominated asCentre of Excellence (COE) Champions to drive improvement acrossplants

    Module created for three critical areas EE, CF & CPP as guide book tohelp plants prepare road maps to reach aspiration values

    Hand books for training of young engineers and plant teams

    Critical performance & practice KPIs for the respective pillar at L1, L2and L3 levels

    Plants to use this as a tool to identify opportunity areas

    COE Champions to conduct plant visit & facilitate individual plant Observe performance and practices followed through plant walk-

    aroundConducting workshop/ training in identified improvement areas

    Training centre to be established in the respective model plants (e.g.,Chanda for EE & CPP, Tikaria for CF)

    Model plants will also set example for break through performances forthe respective KPIs

    1

    4

    3

    2

    5

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    ACC Limited 10

    EAST

    SOUTH-WEST

    NORTH

    Plant

    PPC Clinker factorPercent

    YTD

    SEP

    Q4

    2012

    Diff2011

    ACC 65.5 63.767.0

    KY1 62.062.064.0

    G1 63.065.665.7

    G2 63.065.765.2

    LK 66.366.467.1

    TK 62.062.865.4

    SD ---

    JL ---

    DM ---

    BG 70.572.174.5

    CH 70.071.668.9

    EN ---

    W1 72.074.872.1W2 64.065.968.2

    CD 64.264.468.9

    BE ---

    MK 73.076.974.4

    KO 62.865.870.6

    1.8

    0.1

    0.0

    2.6

    2.7

    0.8

    1.6

    -

    -

    -

    1.6

    -

    3.9

    2.81.9

    0.2

    -

    3.0

    Q1

    2013

    Diff

    Q1

    2013

    63.30.4

    Q4

    2012

    63.7

    1.8

    YTD

    Sep

    65.5

    2011

    67.0

    ACC PPC Clinker factor

    Percent

    My

    Moon

    63.3

    61.5

    63.0

    63.0

    66.3

    62.0

    -

    -

    -

    70.0

    67

    -

    72.064.0

    63.5

    -

    68.0

    62.2

    0.4

    0.0

    0.5

    0.0

    0.0

    0.0

    03

    -

    -

    -

    0.5

    -

    5.0

    0.00.0

    0.7

    -

    0.6

    60.0

    60.0

    64.0

    64.0

    60.0

    62.0

    -

    -

    -

    65.5

    63.0

    -

    69.160.0

    63.0

    -

    69.0

    60.0

    Recommitment towards our aspiration andmini-moons (1/6) x

    Difference betweenQ412 YTD 2012 /Q113 - Q412

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    ACC Limited 11

    EAST

    SOUTH-WEST

    NORTH

    Plant

    PSC Clinker factorPercent

    YTD

    SEP

    Q4

    2012

    Diff2011

    ACC 44.2 42.846.3

    KY1 ---

    G1 ---

    G2 ---

    LK ---

    TK ---

    SD 42.742.744.3

    JL 42.543.444.6

    DM 43.045.150.2

    BG 40.041.144.7

    CH 44.047.047.5

    EN 39.045.049.2

    W1 ---W2 ---

    CD ---

    BE 47.047.249.4

    MK 50.053.155.0

    KO ---

    1.4

    -

    -

    -

    -

    -

    3.0

    0.0

    0.9

    2.1

    1.1

    6.0

    3.1

    --

    -

    0.2

    -

    Q1

    2013

    Diff

    Q4

    2012

    42.8

    1.4

    YTD

    Sep

    44.2

    Q1

    2013

    41.90.9

    2011

    46.3

    ACC PSC Clinker factor

    Percent

    My

    Moon

    41.9

    -

    -

    -

    -

    -

    42.5

    42.0

    42.0

    39.0

    42.0

    38.0

    --

    -

    46.0

    47.0

    -

    0.9

    -

    -

    -

    -

    -

    2.0

    0.2

    0.5

    1.0

    1.0

    1.0

    3.0

    --

    -

    1.0

    -

    39.6

    -

    -

    -

    -

    -

    40.0

    40.0

    40.0

    38.0

    40.0

    40.0

    --

    -

    40.0

    40.0

    -

    Recommitment towards our aspiration andmini-moons (2/6) x

    Difference betweenQ412 YTD 2012 /Q113 - Q412

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    ACC Limited 12

    Two way approach for achieving our aspirations...

    ContinuousImprovement

    Breakthroughprojects

    Use of micro fine fly ash from last field of ESPBeneficiation of fly ash by removing carbon particles by using

    latest technologySeparate grinding of fly ash / slagTransfer of surplus mills from Chanda to different locationsOutsourcing of blending of grinding aid for PSCUse of a combination of accelerators and grinding aidUse of modified gypsum / low purity gypsum

    Breakthrough activities

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    ACC Limited

    Lets work rigorously for next four days to prepare a

    way out for achieving our aspirations