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Acc

PROJE
CT
REPOR
T
ON
ACC
CALCUTTA
BUSINESS
LTD
SCHOOL

PROJECT REPORT
BY
Nazibul Rahaman
PGDM 2014-16

Content

PG NO

1. Introduction.

2. Corporate Profile.

3. History.

4. Products...

4-5

5. SWAT Analysis...

6-7

6. BCG Matrix.

7. Mapping Activity System

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 countrys 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.
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 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 countrys 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. ACCs 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 countrys 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 Indias 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 Cements
43 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 Cements


Fly-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 PPC


In 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 PPC


Compared 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 Bulk


Assured 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 thats 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 Indias 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 lowgrowth 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. Branding

C.
D.
E.
F.

Advertising
Other promotional activities
Packages
Retention marketing

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 :
A f t e r m a k i n g t h e g a p a n d S W O T a n a l y s i s t h e 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 world wide.
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-breaking 16
ACC 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:-

T h e c e m e n t p l a n t s o f AC C L t d a r e l o c a t e d 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 o n p r o v i d i n g t h e b e s t
of products to the changing consumer market in the country and the
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 i m p l e m e n t e d
i.e. either positive or negative. depends upon the projects whether it w
a s 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
Keeping pace with changing times and an evergrowing need for speciali
zeds 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 t i 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 franchisees plant.
Each of the regional Marketing offices has a customer services cell that is
manned by qualified civil engineers. These, in addition to handling afte
r-salesservicing, function as advisory bodies that can help customers,
m a k e t h e r i g h 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.
Besides this, technical books/booklets on cement, concret
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 India
ACC Limited company product are the profitable not only in India but also in the whole
world.