CHAPTER-1

CEMENT IDUSTRY IN INDIA

INTRODUCTION
India, being the second largest cement producer in the world after China with a
total capacity of 151.2 Million Tones (MT), has got a huge cement industry. With
the government of India giving boost to various infrastructure projects, housin
g facilities and road networks, the cement industry in India is currently growin
g at an enviable pace. More growth in the Indian cement industry is expected in
the coming years. It is also predicted that the cement production in India would
rise to 236.16 MT in FY11. It's also expected to rise to 262.61 MT in FY12.
The cement industry in India is dominated by around 20 companies, which account
for almost 70% of the total cement production in India. In the present year, the
Indian cement companies have produced 11 MT cement during April-September 2009.
It took the total cement production in FY09 to 231 MT.

Industry Background
The history of the cement industry in India dates back to the 1889 when a Kolkat
a-based company started manufacturing cement from Argillaceous. But the industry
started getting the organized shape in the early 1900s. In 1914, India Cement C
ompany Ltd was established in Porbandar with a capacity of 10,000 tons and produ
ction of 1000 installed. The World War I gave the first initial thrust to the ce
ment industry in India and the industry started growing at a fast rate in terms
of production, manufacturing units, and installed capacity. This stage was refer
red to as the Nascent Stage of Indian Cement Industry. In 1927, Concrete Associa
tion of India was set up to create public awareness on the utility of cement as
well as to propagate cement consumption.
The cement industry in India saw the price and distribution control system in th
e year 1956, established to ensure fair price model for consumers as well as man
ufacturers. Later in 1977, government authorized new manufacturing units (as wel
l as existing units going for capacity enhancement) to put a higher price tag fo
r their products. A couple of years later, government introduced a three-tier pr
icing system with different pricing on cement produced in high, medium and low c
ost plants.
Cement industry, in any country, plays a major role in the growth of the nation.
Cement industry in India was under full control and supervision of the governme
nt. However, it got relief at a large extent after the economic reform. But gove
rnment interference, especially in the pricing, is still evident in India. In sp
ite of being the second largest cement producer in the world, India falls in the
list of lowest per capita consumption of cement with 125 kg. The reason behind
this is the poor rural people who mostly live in mud huts and cannot afford to h
ave the commodity. Despite the fact, the demand and supply of cement in India ha
s grown up. In a fast developing economy like India, there is always large possi
bility of expansion of cement industry.

Cement Production and Growth

Domestic demand plays a major role in the fast growth of cement industry in Indi
a. In fact the domestic demand of cement has surpassed the economic growth rate
of India. The cement consumption is expected to rise more than 22% by 2009-10 fr
om 2007-08. In cement consumption, the state of Maharashtra leads the table with
12.18% consumption, followed by Uttar Pradesh. In terms of cement production, A
ndhra Pradesh leads the list with 14.72% of production, while Rajasthan remains
at second position.
The production of cement in India grew at a rate of 9.1% during 2006-07 against
the total production of 147.8 MT in the previous fiscal year. During April to Oc
tober 2008-09, the production of cement in India was 101.04 MT comparing to 95.0
5 MT during the same period in the previous year. During October 2009, the total
cement production in India was 12.37 MT compared to a production of 11.61 MT in
the same month in the previous year. The cement companies are also increasing t
heir productions due to the high market demand. The cement companies have seen a
net profit growth rate of 85%. With this huge success, the cement industry in I
ndia has contributed almost 8% to India's economic development.
Technology Up-gradation
Cement industry in India is currently going through a technological change as a
lot of up gradation and assimilation is taking place. Currently, almost 93% of t
he total capacity is based entirely on the modern dry process, which is consider
ed as more environment-friendly. Only the rest 7% uses old wet and semi-dry proc
ess technology. There is also a huge scope of waste heat recovery in the cement
plants, which lead to reduction in the emission level and hence improves the env
ironment.
Cement Dispatches
Cement industry in India has successfully maintained almost total capacity utili
zation levels, which resulted in maintaining a 10% growth rate. In 2006-07, the
total dispatch was 155 MT, which rose up to 170 MT in 2007-08. The month of Octo
ber 2009 saw a cement dispatch of 12.22 MT, which was almost 9% higher than the
total cement dispatch of 11.21 MT in the same month in the previous year.
2008-09 (Apr-Oct) (in MT) 2007-08 (Apr-Oct) in MT
Production 101.04 95.05
Despatches (Excluding Export) 100.24 94.33
Export 1.46 2.16
Capacity Utilization (%) 85 93
Major Players in Indian Cement Industry

There are a number of players prevailing in the cement industry in India. Howeve
r, there are around 20 big names that account for more than 70% of the total cem
ent production in India. The total installed capacity is distributed over around
129 plants, owned by 54 major companies across the nation.

Following are some of the major names in the Indian cement industry:
Company Production Installed Capacity
ACC 17,902 18,640
Gujarat Ambuja 15,094 14,860
Ultratech 13,707 17,000
Grasim 14,649 14,115
India Cements 8,434 8,810
JK Group 6,174 6,680
Jaypee Group 6,316 6,531
Century 6,636 6,300
Madras Cements 4,550 5,470
Birla Corp. 5,150 5,113
Mergers and Acquisitions in Cement Industry in India
• UltraTech Cement is going to absorb its sister concern Samruddhi Cement to becom
e biggest cement company in India.
• World's leading foreign funds like HSBC, ABN Amro, Fidelity, Emerging Market Fun
d and Asset Management Fund have together bought 7.5% of India Cements (ICL) at
a cost of US$ 124.91 million.
• Cimpor, a Cement company of Portugal, has bought 53.63% stake that Grasim Indust
ries had in Shree Digvijay Cement.
• French cement company Vicat SA bought 6.67% share of Sagar Cement at a cost of U
S$ 14.35 million.
• Holcim now holds 56% stake of Ambuja Cement. Previously it held 22% of stake. Th
e company utilized various open market transactions to increase its stakes. It i
nvested US$ 1.8 billion for that.
Recent Investments in the Indian Cement Industry
• In a recent announcement, the second largest cement company in South India, Dalm
ia Cement declared that it's going to invest more than US$ 652.6 million in the
next 2-3 years to add 10 MT capacity.
• Anil Ambani-led Reliance Infrastructure is going to build up cement plants with
a total capacity of yearly 20 MT in the next 5 years. For this, the company will
invest US$ 2.1 billion.
• India Cements is going to set up 2 thermal power plants in Andhra Pradesh and Ta
mil Nadu at a cost of US$ 104 billion.
• Anil Ambani-led Reliance Cementation is also going to set up a 5 MT integrated c
ement plant in Maharashtra. It will invest US$ 463.2 million for that.
• Jaiprakash Associates Ltd has signed a MoU with Assam Mineral Development Corpor
ation Limited to set up a 2 MT cement plant. The estimated project cost is US$ 2
21.36 million.
• Rungta Mines (RML) is also planning to invest US$ 123 million for setting up a 1
MT cement plant in Orissa.
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 front runners in the cemen
t 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, infr
astructure and other development projects. With more and more developmental proj
ects coming up, the profit and the market share of the company is expected to ri
se at a considerable rate.
The cement plants of ACC Ltd
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 wi
th 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 t
he share in the market.
All the ACC Ltd. Cement Plants use the cutting edge technologies and services wh
ich 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 con
sumer market in the country and the world. The following table provides a genera
l idea of the ACC Ltd. Cement Plants.
Acc Cement Plants In India
Name of the Company Location State Process Used
ACC Ltd. Gagal Himachal Pradesh Dry
ACC Ltd. (G) Tikaria Uttar Pradesh Grinding Unit
ACC Ltd. Lakheri Rajasthan Dry
ACC Ltd. Kymore Madhya Pradesh Dry
ACC Ltd. Chaibasa Jharkhand Chaibasa
ACC Ltd. Sindri Jharkhand Grinding Unit
ACC Ltd. Jamul Chhattisgarh Dry and Semi-Dry
ACC Ltd. Chanda Maharashtra Dry
ACC Ltd. Wadi Karnataka Dry
ACC Ltd. - New Wadi Karnataka Dry
ACC Ltd. Macherial Andhra Pradesh Grinding Unit
ACC Ltd. Madukkarai Tamil Nadu Semi-Dry
Features of ACC Ltd. Cement Plants
All the cement plants of the company are equipped with advanced technological fa
cilities which make them completely environment friendly. The plants use some of
the sophisticated pollution control devices in various parts such as raw mills,
power plants, cement kilns, coolers and other equipments. In addition, the mini
ng technologies that have been implemented in the cement plants of ACC Ltd are a
lso based on environment safeguard norms.

In its endeavor towards greenery, the company has also started various types of
afforestation, horticulture and tree planting programs near its cement plants. I
t not only reduces pollution but also helps conserve the mineral resources. The
vacant spaces in the mines and the cement plans are being utilized for the purpo
se of planting of trees. In some of the ACC Ltd. Cement Plants in places like Ch
aibasa, Kymore, Jamul and Gagal, greenery has been added to around 40% of the to
tal area which is around 10% more than the normal norms that has been set. The m
anagement of these plants has given stress on the green belt development program
s.

Due to the high production as well as the dedicated effort towards maintaining e
cological balance and nature conservation, the company and its cement plans have
been the recipient of a number of prestigious awards like:
•
• Indo German Greentech Environment Excellence Award
• Vishwakarma Rashtriya Puraskar trophy for safety in mining
• National Award for outstanding performance in rural and agricultural development
• Indira Priyadarshini Vrikshamitra Award for extraordinary work in environment pr
otection
• FICCI Award for pollution control
The ACC Ltd. Cement Plants consist of high quality Zero Water Discharge faciliti
es which help in proper water management. The water that is used in the plant fo
r the process of industrial cooling is recycled by the use of tanks, water ponds
and cooling towers. Through this process, the company has successful in water h
arvesting.

WITH SPECIAL REFERENCE TO ACC LTD VIZ-VIZ GUJRAT AMBUJA CEMENT LIMITED
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, 1
9 Ready mix concrete plants, 19 sales offices, and several zonal offices. It has
a workforce of about 9000 persons and a countrywide distribution Network of ove
r 9,000 dealers. ACC's research and development facility has a unique track reco
rd of innovative research, product development and specialized consultancy servi
ces. Since its inception in 1936, the company has been a trendsetter and importa
nt 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 communi
ty welfare programmers have won it acclaim as a responsible corporate citizen. A
CC has made significant contributions to the nation building process by way of q
uality products, services and sharing its expertise.
In the 70 years of its existence, ACC has been a pioneer in the manufacture of c
ement and concrete and a trendsetter in many areas of cement and concrete techno
logy including improvements in raw material utilisation, process improvement, en
ergy conservation and development of high performance concretes.
ACC’s brand name is synonymous with cement and enjoys a high level of equity in th
e Indian market. It is the only cement company that figures in the list of Consu
mer 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 i
ndustry. This ensures not just consistency in product quality but also continuou
s improvements in products, processes, and application areas.
ACC has rich experience in mining, being the largest user of limestone, and it i
s also one of the principal users of coal. As the largest cement producer in Ind
ia, it is one of the biggest customers of the Indian
Railways, and the foremost user of the road transport network services for inwar
d and outward movement of materials and products.
ACC has also extended its services overseas to the Middle East, Africa, and Sout
h America, where it has provided technical and managerial consultancy to a varie
ty of consumers, and also helps in the operation and maintenance of cement plant
s 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 la
ws came into existence. The company installed pollution control equipment and hi
gh efficiency sophisticated electrostatic precipitators for cement kilns, raw mi
lls, 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 w
ide range of activities to improve the living conditions of the under-privileged
classes living near its factories.

Chapter-2
COMPANY HISTORY of ACC

2.1Heritage
Ours has been an interesting story – one that inspired a book. ACC was formed in 1
936 when ten existing cement companies came together under one umbrella in a his
toric merger – the country’s first notable merger at a time when the term mergers an
d acquisitions was not even coined. The history of ACC spans a wide canvas begin
ning with the lonely struggle of its pioneer F E Dinshaw and other Indian entrep
reneurs like him who founded the Indian cement industry. Their efforts to face c
ompetition for survival in a small but aggressive market mingled with the stirri
ng 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 cemen
t giant. These companies belonged to four prominent business groups – Tatas, Khata
us, 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.
ACC stands out as the most unique and successful merger in Indian business histo
ry, in which the distinct identities of the constituent companies were melded in
to a new cohesive organization – one that has survived and retained its position o
f leadership in industry. In a sense, the formation of ACC represents a quest fo
r the synergy of good business practices, values and shared objectives. The use
of the plural in ACC’s full name, The Associated Cement Companies Limited, itself
indicates the company’s origins from a merger. Many years later, some stockbrokers
in the country’s leading stock exchanges still refer to this company simply as ‘The
Merger’.
A strategic alliance
The house of Tata was intimately associated with the heritage and history of ACC
, right from its formation in 1936 upto 2000. Between the years 1999 and 2000, t
he Tata group sold all 14.45 per cent of its shareholding in ACC in three stages
to subsidiary companies of Gujarat Ambuja Cements Ltd (GACL), who are now the l
argest single shareholder in ACC. This has enabled ACC to enter into a strategic
alliance with GACL, a company reputed for its brand image and cost leadership i
n the cement industry.
Holcim - a new partnership
A new association was forged between ACC and the Holcim group of Switzerland in
2005. In January 2005, Holcim announced its plans to enter into a long-term stra
tegic alliance with the Ambuja Group by acquiring a majority stake in Ambuja Cem
ents 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 maj
ority shareholding in ACC. An open offer was made by Holdcem Cement Pvt. Limited
along with Ambuja Cements India Ltd. (ACIL), following which the shareholding o
f ACIL increased to 34.69 per cent of the Equity share capital of ACC. Consequen
tly, ACIL has filed declarations indicating their shareholding and declaring its
elf as a Promoter of ACC.
Holcim is the world leader in cement as well as being large suppliers of concret
e, aggregates and certain construction-related services. Holcim is also a respec
ted name in information technology and research and development. The group has i
ts headquarters in Switzerland with worldwide operations spread across more than
70 countries. Considering the formidable global presence of Holcim and its exce
llent reputation, the Board of ACC has welcomed this new association.

2.2Corporate Profile
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, 1
9 Ready mix concrete plants, 19 sales offices, and several zonal offices. It has
a workforce of about 9000 persons and a countrywide distribution network of ove
r 9,000 dealers. ACC s research and development facility has a unique track reco
rd of innovative research, product development and specialized consultancy servi
ces. Since its inception in 1936, the company has been a trendsetter and importa
nt 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 communi
ty welfare programmes have won it acclaim as a responsible corporate citizen. AC
C has made significant contributions to the nation building process by way of qu
ality products, services and sharing its expertise.
In the 70 years of its existence, ACC has been a pioneer in the manufacture of c
ement and concrete and a trendsetter in many areas of cement and concrete techno
logy including improvements in raw material utilisation, process improvement, en
ergy conservation and development of high performance concretes.
ACC’s brand name is synonymous with cement and enjoys a high level of equity in th
e Indian market. It is the only cement company that figures in the list of Consu
mer 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 i
ndustry. This ensures not just consistency in product quality but also continuou
s improvements in products, processes, and application areas.
ACC has rich experience in mining, being the largest user of limestone, and it i
s also one of the principal users of coal. As the largest cement producer in Ind
ia, it is one of the biggest customers of the Indian Railways, and the foremost
user of the road transport network services for inward and outward movement of m
aterials and products.
ACC has also extended its services overseas to the Middle East, Africa, and Sout
h America, where it has provided technical and managerial consultancy to a varie
ty of consumers, and also helps in the operation and maintenance of cement plant
s 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 la
ws came into existence. The company installed pollution control equipment and hi
gh efficiency sophisticated electrostatic precipitators for cement kilns, raw mi
lls, 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 w
ide range of activities to improve the living conditions of the under-privileged
classes living near its factories.
2.3CORPORATE GOVERNANCE
The importance of Corporate Governance has always been recognised in ACC. Much b
efore Corporate Governance guidelines became applicable and mandatory for listed
companies, ACC had systems in place for effective strategic planning and proces
ses, risk management, human resources development and succession planning. The A
udit Committee in ACC was constituted as far back as in 1986. The Shareholders-I
nvestors Grievance Committee was formed way back in 1962 and the Compensation Co
mmittee was convened since 1993. The Company’s 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 I
ndependent 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 Dire
ctors is clearly defined. Members of the Board have full freedom to express thei
r views on matters placed before them for deliberation and consideration.
It is the continuous endeavour of the Board of Directors to achieve the highest
standards of Corporate Governance through the adoption of a strategic planning p
rocess, succession planning for attracting, motivating and energizing human reso
urces, identification of major risks and the way and means to manage such risks,
an effective communication policy and integrity of Company’s internal control sys
tems. The Board of Directors are also constantly looking at ways and means to en
sure that the most effective use is made of the scarce resources at its disposal
and that the management and employees have the freedom to take the Company forw
ard 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 w
ith regard to information relating to financial matters, company’s operations/perf
ormance, stock movements etc.
2.4 Company Vision:
Vision is defined as a mental image or foresight. Associated Cement Companies Lt
d. say its vision “ACC Pvt. Ltd. enters the next few years with the confidence of
a learning knowledge based and happy organization”
2.5 MISSION
ACC Ltd. drives their mission statements from a particular set of tasks. They ar
e called upon to perform in the light of their individual, national or global pr
iorities.
Indian Cement industry into a Globally strong and competitive industry.
2.6 HUMAN RESOURCES
ACC has a large workforce of about 9,000 people, comprising experts in various d
isciplines assisted by a dedicated workforce of skilled persons. ACC employees r
eferred to as the ACC Parivar, come from all parts of the country and belonging
to a variety of ethnic, cultural and religious backgrounds. ACC employees displa
y a strong sense of loyalty to the Company and their special stellar qualities a
s ‘value-adding’ human capital are well known in the industry.
ACC has clearly stated guidelines concerning recruitment, termination, career ad
vancement, performance appraisal, professional and employee ethics and code of c
onduct. The Company’s personnel policies and processes enshrine equal opportunitie
s to all and non-discrimination with regard to gender, caste, creed, ideology or
other opinion, whether social, political or religious. Also ensured is a due pr
ocess for employee consultation and participation in organizational development
and policy formulation.
A) Recruitment
Recruitment in ACC is a very fair and transparent process with adequate opportun
ities to look for suitable candidates internally as well as from outside. Applic
ants are generally invited on the basis of specific advertisements in newspapers
and websites. A Committee of officers called the Central Recruitment Committee
handles the entire recruitment process comprising screening of applications, pre
liminary short-listing, interviews and final selection. Every attempt is made to
make the selection process as objective as possible by incorporating tests of c
ompetence. In some cases, outside consultants are retained. All decisions of the
recruitment committee are recorded in respect of each candidate. Candidates are
informed of their short-listing and selection immediately after the interview o
r at the earliest thereafter.
B) Performance management

The Company’s performance management system is in itself a benchmark that provides

ample opportunities and motivational incentives to employees so as to reward an
d retain good talent within the Company. These incentives include Performance Li
nked Incentives, Good Work Awards, Letters of Appreciation, Special Increments,
Promotions, Nomination to external training programmes in India and abroad, publ
ic felicitation and appreciation. Some plants have Best Employee and Employee of
the Month Awards and recognition. Competent employees and those who display apt
itude are invited to become Trainers themselves and receive Train the Trainer fa
cilitation.
C) Training and Development
Our new Performance Management System incorporates a process called Competency A
ssessment and Training and Developmental Needs wherein appraisers are specifical
ly called upon to identify and assess training needs of employees at specific in
tervals that do not coincide with Performance Appraisals. This is so that traini
ng needs can be assessed objectively. Training is imparted to take care of an in
dividual’s career development as well as functional and skill enhancement. Compete
ncy and Development training inputs include Skill and general performance enhanc
ement, communication skills and Career development. Functional training needs ar
e identified and conducted by functional departments while Corporate HR organize
s competency and developmental inputs.
E) Employee Welfare and Perquisites

Employee welfare receives prime attention at ACC. We have several schemes for ge
neral welfare of employees and their families. These cover education, healthcare
, retirement benefits, loans and financial assistance and recreation facilities.
ACC townships have excellent schools that are often the best in the district. Ed
ucation at these schools is subsidized for employees’ wards. We offer attractive s
cholarship allowances for children studying at places away from their parents, m
erit scholarships for outstanding children and financial assistance for employee
s’ children to pursue higher professional education.
Liberal medical benefits are made available to employees and their family member
s by way of reimbursements towards normal medical treatment, domiciliary treatme
nts and special sanctions for serious illness. Each of our townships has well-eq
uipped health care centers with qualified medical staff and facilities, ambulanc
e, referrals and tie-ups with reputed hospitals for specialized treatment. In ad
dition, there are regular health checkups, camps and programmes.
Employees are eligible to apply for loans and financial assistance for various p
urposes such as purchase of assets, residential premises as well as a scheme tha
t provides for supply of cement at subsidized rates to those building their own
houses.
At our cement plants and factories, employees are provided furnished and unfurni
shed accommodation based on their entitlements. At many locations, the employees
are given free electricity, free water supply and free bus facility for nearby
places and schools. These houses are well maintained and periodically upgraded.
F) Employee satisfaction

In addition to periodic internal Employee Satisfaction Surveys, we participate i

n Employee Satisfaction and Work Places Surveys conducted by reputed external ag
encies and organizations like Hewitt Associates Grow Talent. And from time to ti
me, ACC has also retained reputed firms like Mercer and Boston Consulting Group
to study our internal work environment and employee policies and suggest areas o
f improvement. We share below salient points of the latest survey of employees:
• 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 dee
p respect for the company, its performance management system and its overall bus
iness performance.

2.7 IT Infrastructure
ACC is one of the first Indian companies to realize the potential and importance
of information technology and adopt automation and IT. We started computerizing
our systems as early as 1968 - a commitment to progress through the harnessing
of relevant available technologies, a habit that continues even today.
We have traveled a long way from the days in 1968 when we were using simple keyp
unching machines. Significant improvements have been made in the application sys
tems and infrastructure. From Batch processing to on-line systems, from IBM1401
to the latest UNIX and Windows 2003 based machines we have made timely transitio
ns determined by available technologies and business requirements.
We are currently in the process of making a quantum jump from our current in-hou
se developed systems using Oracle 9i and Developer 6i to an ERP based solution.
This decision was solely based on our strategic objectives and the business bene
fits that we expect to derive from implementing such a solution. With this move
we will also align people, business processes and technologies across the countr
y.
As part of the objective of providing uninterrupted service to the business, we
are setting up a primary data centre and a disaster recovery centre to house all
the servers related to the ERP solution. These data centers are inter-connected
using high speed data links so that the data is always current at both these lo
cations.
2.8 SUBSIDIARIES AND ASSOCIATES
Subsidiary companies of ACC include the country s first bulk cement distribution
terminal in Mumbai. Our experience of several decades in manufacturing and engi
neering has helped us acquire skills that have proved useful in other areas. Thr
ough subsidiaries, technical collaborations and associations, ACC offers product
s and services in fields such as cement machinery, tyre machinery, bulkers.
A) 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 ceme
nt in bulk from ACC plants at Wadi. The plant has its own special purpose railwa
y wagons and rakes and its own railway siding. The first of its kind in India, B
CCI is equipped with all the facilities required by increasingly sophisticated c
onstruction sites in a bustling metropolis, including a laboratory, a fleet of s
pecialized 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 ba
gs of varying sizes from 1 tonne down to 25 kg bags. BCCI is situated strategica
lly on the outskirts of Mumbai, just off the new Mumbai-Pune Expressway. It is a
landmark structure spread over 30 acres of land.
B) ACC Machinery Company Limited (AMCL)
Located in the Butibori Industrial estate near Nagpur, AMCL manufactures machine
ry and equipment for use in chemicals and cement industries such as bulk transpo
rters, vertical pre-grinding roller mills and blowers and tyre and rubber manufa
cturing machinery such as presses, mixers and extruders.

D) Saudi Arabia - Yanbu Cement Company

Since 1979 ACC has been operating and managing a large cement plant owned by Yan
bu Cement Company (YCC) and located near the port city of Yanbu in the Kingdom o
f Saudi Arabia. The Yanbu plant incorporates sophisticated process control syste
ms. YCC today has a capacity of over 3.30 million tonnes per annum. Cement produ
ction at this plant has continued to exceed the guaranteed quantum stipulated in
the contract year after year.

D) Nigeria - Dangote Industries

ACC has been retained by M/s Dangote Industries, a leading diversified industria
l group of Nigeria, to provide comprehensive engineering consultancy for setting
up their proposed new green field cement plants of capacity 3 x 7000 TPD (tonne
s per day) and for optimisation and upgradation of their existing plants from 2x
2000 TPD to 2x3500 TPD.

2.9 Milestone
1936 Incorporation of The Associated Cement Companies Limited on August 1, 19
36.
________________________________________
1936 First Board Meeting of The Associated Cement Companies Limited held at E
splanade House, Mumbai on November 10, 1936.
________________________________________
1937 With the transfer of the 10th company to ACC, viz. Dewarkhand Cement Com
pany, the formation of ACC is complete on October 23, 1937.
________________________________________
1944 ACC’s first community development venture near Bombay
________________________________________
1947 India’s first entirely indigenous cement plant established at Chaibasa in
Bihar
________________________________________
1952 Village Welfare Scheme launched
________________________________________
1955 Sindri cement works used the waste product calcium carbonate sludge from
fertilizer factory at Sindri.
________________________________________
1956 Bulk Cement Depot established at Okhla, Delhi
________________________________________
1957 Technical training institute established at Kymore, Madhya Pradesh.
1962 Manufacture of Accoproof, a waterproofing additive.
________________________________________
1965 ACC’s Central Research Station (CRS) established at Thane
________________________________________
1965 Manufacture of Portland Pozzolana Cement.
________________________________________
1965 Manufacture of Calundum, a High Alumina Binder; Firecrete, Low Density A
lumina Castables and High Alumina Refractory Cement.
________________________________________
1968 Advent of computers in ACC for data processing and designing management
information and control systems.
________________________________________
1968 ACC supplied and commissioned one-million-tonne iron ore pelletising pla
nt ordered by TISCO
________________________________________
1971 Manufacture of Whytheat Castables A, K, C and Cal-Al-75
________________________________________
1973 Take-over of The Cement Marketing Company of India (CMI)
________________________________________
1977 ACC receives ASSOCHAM first national award for the year 1976 instituted
for outstanding performance in promoting rural and agricultural development acti
vities.
________________________________________
1978 Introduction of the energy efficient precalcinator technology for the fi
rst time in India. Full scale commercial production based on MFC technology at W
adi in 1979.
________________________________________
1979 ACC wins international contract for operation and management of a new on
e million tonne cement plant at Yanbu-Ras Biridi in Saudi Arabia.
1987 ACC develops a new binder for use at sub-zero temperatures, which is suc
cessfully used in the Indian expedition to Antarctica.
________________________________________
1992 Incorporation of Bulk Cement Corporation of India, a joint venture with
the Government of India.
________________________________________
1993 ACC starts the commercial manufacture of Ready Mixed Concrete at Mumbai.
________________________________________
1998 Commissioning of the 0.6 MTPA cement grinding unit at Tikaria, Uttar Pra
desh.
________________________________________
1999 Commissioning of captive power plants at the Jamul and Kymore plants in
Madhya Pradesh.
________________________________________
1999 Tata group sells 7.2% of its stake in ACC to Ambuja Cement Holdings Ltd,
a subsidiary of Gujarat Ambuja Cements Ltd. (GACL)
________________________________________
2000 Tata Group sells their remaining stake in ACC to the GACL group, who wit
h 14.45% now emerge as the single largest shareholder of ACC.
________________________________________
2001 Commissioning of the new plant of 2.6 MTPA capacity at Wadi, Karnataka p
lant, the largest in the country, and among the largest sized kilns in the world
.
________________________________________
2002 ACC wins PHDCCI Good Corporate Citizen Award
________________________________________
2003 IDCOL Cement Ltd becomes a subsidiary of ACC

Chapter-3
RESEARCH AND METHODOLOGY

Research is an ORGANIZED and SYSTEMATIC way of FINDING ANSWERS to QUESTIONS.

SYSTEMATIC because there is a definite set of procedures and steps which you wil
l follow. There are certain things in the research process which are always done
in order to get the most accurate results.
ORGANIZED in that there is a structure or method in going about doing research.
It is a planned procedure, not a spontaneous one. It is focused and limited to a
specific scope.
FINDING ANSWERS is the end of all research. Whether it is the answer to a hypoth
esis or even a simple question, research is successful when we find answers. Som
etimes the answer is no, but it is still an answer.
QUESTIONS are central to research. If there is no question, then the answer is o
f no use. Research is focused on relevant, useful, and important questions. With
out a question, research has no focus, drive, or purpose.
A. Sample Size:
Sample size is 50. Data was analyzed by surveying dealers and the competitors of
ACC limited.

B. Sample Design:
This part is done through discussing and analyzing with my project guide and ref
erring to the subject regarding this topic. It was a random sampling.
C. Mode of Analysis:
The methods used to analyze the data are as follows:
1) To study the distributors of cement and their involvement in sales of
different brands of cement.
2) To find out whether the distributors of cement and to assess the preference o
f different brands of cement by the distributors.
3) Interpret and analysis of the data and present it in a proper manner.
4) Uses of Microsoft excel for preparation of graph.
The research methodology is the way systematically solve the systematically solv
e the research problems. The main objective of the product was to know the marke
t condition of ACC Cemejnt and to study the sales promotion activities undertake
n by various cement companies. For this, right at the beginning the research pla
n was prepared. This includes all the detail of how to go about research work of
ACC Cement.
RESEARCH PLAN
Definition

of research problem The research problem can be defined as follows
1. What are the cement being used by various customer in the region of Gujrat
and what are their expectation from the cement.
2. What the market trend is of cement and brand awareness of ACC Cement.
DATA COLLECTION
The descriptive nature of research necessitates collection of primary data from
retailers through market survey, personal interview technique was used and inter
view was conducted through structured questionnaire the question was asked in pr
earranged manner. The market research was conducted over a period of 60 days. Da
ta was tabulated, analyzed and suggestion and recommendation were given.
RESEARCH INSTRUMENTATS
The Research instrument chosen for conducting the survey was structured question
naire was pre [pared as show as in the annexure. The questionnaire includes open
ended as well as close ended question, few open ended question were included to
obtain the perception of the retailers. The questionnaire designed and a pilot
survey was made with the questionnaire and then changes were made accordingly wi
th the questionnaire.
SAMPLE PLAN
A sampling technique was chosen for the study was Random Sampling Technique. Thi
s is the most common method of selecting the sample. This is because the retaile
rs are localized in different part of the marker a group of retailers are chosen
are random from large group. It gives all retailers in a group and equal chance
of being selected for the purpose of the survey. SAMPLE SIZE Out of nearly 50 r
etailers in cement market of Gujarat and its region around randomly 50% of total
population was considered as the sample size. CONTACT METHOD Both personal and
telephonic interview methods were used for conducting the market survey. Persona
l interview had the benefit one to one communication between the researcher and
the respondent. If the respondent is having any doubt or queries in their mind,
they can get heir doubts clarified from the researcher on the spot and so superi
or of data was collected from the survey was collected from the survey. Tele – int
erview was conducted with the structured questionnaire. Tele-interview was less
costly and less time consuming but the data could not be collected in detail fro
m the respondents. Also any doubt or queries of respondent could not be clarifie
d. ANALYSIS AND INFORMATION detailed information was collected for the project m
arker survey for retail marketing and sales promotion activities of ACC Cement f
or the area of Gujarat market. The information was collected by visiting the ret
ailers of cement present inGujarat market. The interview of retailer taken in a
friendly atmosphere so as to encourage them to give right information, without a
ny hesitation. Because of some inherent limitation of telephonic interview, the
method of personal interview was mostly used.
ANALYSIS
The analysis of the collection information was made in scientific manner. Differ
ent manner rank was given to each alternative of particular questions, in the qu
estionnaire. A particular rank was given in the following manner, Rank- 1 For th
e most favorable alternative Rank- 2 For the moderately favorable alternative Ra
nk- 3 For unfavorable alternative Rank- 4 For most unfavorable alternative Rank-
5 Unfavorable To come at the conclusion, total of each alternative of all the s
ample size retailers was made. Thus the “sum of an alternative” having least score c
onsidered to be most favorable. In this manner, result is prepared for various i
mportant parameters of the survey. With the help of results so obtained, the fin
dings are recorded in the form of graphs. The market of cement Changes as the ar
ea changes. The demand for particular cement for particular cement is much less.
This is because of the crazier Trend of particular market. Thus the demand for
the cement is not that price sensitive. Price is not the criterion for selection
of rejection of particular brand is adapted on the type of application of cemen
t and the brand name in market. Thus the awareness among the customers about the
particular cement plays a vital role. The major types of customers are the buil
ders and masons. The individual customers are there, but their demand is not mor
e. The customers are ready to give slightly high price, but he wants quality cem
ent, thus he is quality conscious. The customer perceives quality of cement as g
ood quality because of effective marketing. So effective marketing is necessary.

The retailer in the marker plays an important role in the sale of the cement. Th
ey have some expectation from the cement companies; they expected credit facilit
y, good sales promotion schemes, and timely delivery of cement, etc Among the pl
astic bag and paper bag of cement, Customer prefer bag. This is because the pape
r bag prevents it from moisture and quantity remains intact. In brief cement mar
ket is sensitive to marketing. The better & more the marketing the more is possi
bility of sales. The observations and findings of the market survey about market
share and sales promotion activities are given at the next stage, in the report
.

ANALYSIS, PRESENTSTION AND INTERPRETATION 1:-

Dealers brand preference:-
Company No of Dealers percentage
Lafarge 24 12%
Konark 60 30%
Ulteratech 36 18%
Acc 36 18%
Ambuja 14 7%
Century 12 6%
Grasim 8 4%
Duncan 10 5%
Total 200 100%

ANALYSIS, PRESENTSTION AND INTERPRETATION 2:- Dealer’s preference for the storage
of cements brand:-
Company No ofDealers percentage
Lafarge 40 20%
Konark 50 25%
Ulteratech 22 11%
Acc 24 12%
Ambuja 18 9%
Century 24 12%
Grasim 12 6%
Duncan 10 5%
Total 200 100%
Analysis and Interpretation:- Most of the dealers prefer to store either Lafarge
or Konark. 20% of the dealer choice is Lafarge where as 25% of the dealers choi
ce is Konark. Remaining 35% of the dealers inclined towards the Acc, Ultratech a
nd Century. Remaining 20% of the dealer gives equally importance to the Ambuja,
Duncan and Grasim.
ANALYSIS, PRESENTSTION AND INTERPRETATION 3:- Customer inclination towards the c
ement brand:-
Company No of Dealers percentage
Lafarge 24 12%
Konark 60 30%
Ulteratech 36 18%
Acc 36 18%
Ambuja 14 7%
Century 12 6%
Grasim 8 4%
Duncan 10 5%
Total 200 100%
Analysis and Interpretation:- 78% of the customers are brand loyal. And 22% of t
he customers are price sensitive they go with that brand which has fewer prices.
In case of brand equity Lafarge lies in No. four.
41
Company Consumption percentage
Lafarge 1365 13%
Konark 2651 26%
Ulteratech 1548 15%
Acc 1890 19%
Ambuja 640 6%
Century 750 7%
Grasim 625 6%
Duncan 685 7%
Total 10154 100%
ANALYSIS, PRESENTSTION AND INTERPRETATION 6:- Company that provides information
to the retailer about the price change in the near future:-
Company No of Dealer
Lafarge 15
Konark 10
Ulteratech 21
Acc 22
Ambuja 26
Century 38
Grasim 36
Duncan 32
Total 200
Analysis and Interpretation:- More than 100 of retailers said that Century or Gr
asim or Duncan provide the preinformation about the future price change. This he
lps them to take precautionary action against the future happenings.
Company No of days
Lafarge 15
Konark 10
Ulteratech 21
Acc 22
Ambuja 26
Century 38
Grasim 36
Duncan 32
Total 200
Analysis and Interpretation:- The entire market leaders (Lafarge, Konark, ACC, U
ltratech) of cement industries provides relatively less credit period (i.e. less
than 50 days) to their stockiest due to which the stockiest are not able to pro
vide the sufficient credit in days to their retailers. Where as the newly entere
d cement brand provides sufficient credit in terms of quantity as well as in day
s to their retailers. That’s why their growth rate is relatively high.
45
Q Maximum profit you get out of selling various brands rank them?
ANALYSIS, PRESENTSTION AND INTERPRETATION 8:- Maximum share of profit of retaile
rs comes through the selling of the cement:-
Company Profit
Lafarge 35
Konark 45
Ulteratech 38
Acc 37
Ambuja 14
Century 17
Grasim 8
Duncan 6
Total 200
Analysis and Interpretation:- Only 35 retailers said that their maximum profit c
omes through Lafarge. Similarly 45, 38, and 37 retailers said that their maximum
profit comes through Konark, ACC, and Ultratech respectively.
46
Q. Rank sales promotion activities according to their effectiveness?
Activities Rank
Shop Naka & Manson Meet
Gifts
Incentives
Hoardings
Others
ANALYSIS, PRESENTSTION AND INTERPRETATION 9:- Retailer’s belief towards the activi
ty that influences sales of the cement:-
Activities Ranks
Shops naka and mason 14
Gift 37
Incentive 49
Hoardings 66
Others 34
Total 200
Analysis and Interpretation:- Sixty six retailers out of two hundred which is 33
%, beliefs that Hoardings influence the sales of the cement. Incentives also pla
y vital role in the promotion of the goods.
47
Q Rank sales promotion activities according to their effectiveness?
Activities Rank
Shop Naka & Manson Meet
Gifts
Incentives
Hoardings
Others
ANALYSIS, PRESENTSTION AND INTERPRETATION 10:- Retailers’ preference towards the g
ift:-
Gifts No of dealers
Share 14
Tour 40
Gold 39
White Gold 12
Cheque 29
others 66
Totals 200
Analysis and Interpretation:- Most of the retailers do not want to say about the
gift. But after asking again and again their preference are out of the availabl
e optioned e.g.:-TV, Camera, cycle, trophy, etc. Out of two hundred 40 preferred
tour, 39 preferred gold, 29 preferred cheque, 14 preferred share and 12 preferr
ed white gold.
48
Q Give your raking to the cement companies in their sales promotion activities
Company Rank
Lafarge
Konark
Ultratech
Acc
Ambuja
Century
Grasim
Duncan
ANALYSIS, PRESENTSTION AND INTERPRETATION 11:- Retailers rank the cement company
on the basis of the sales promotional activities:-
Company Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Total (Retailers)
Lafarge 20 40 80 25 35 200
Konark 60 55 47 38 0 200
Ultratech 20 25 32 78 45 200
Acc 20 71 57 27 25 200
Ambuja 12 14 45 68 61 200
Century 13 45 68 52 22 200
Grasim 50 68 58 24 200
Duncan 30 62 82 26 200
Analysis and Interpretation:-
From the interpretation of the data, we come to know that Konark and ACC are on
no.1 and no.2 respectively. Lafarge cement is on no.3. Because 30% of the retail
ers believe that Lafarge is on no three. Century, Grasim, and Duncan are making
extra effort to penetrate the market. Every retailer mentioned their name and me
ntioned their considerable effort. Q What is the general price gap (BP-RP) betwe
en the following companies?

ANALYSIS, PRESENTSTION AND INTERPRETATION 12:- The profit on per bag of cement:-
Company price gap on per bag
Lafarge 6
Konark 5
Ultratech 6
Acc 6
Ambuja 7.5
Century 8
Grasim 10
Duncan 10
Analysis and Interpretation:-
Lafarge charges competitive price to the customer. Some of the company charges p
remium price like OCL where as some of the brand has very less price like Grasim
, Cemtury and Duncan. Price of Lafarge is always equal to the price of Ultratech
, ACC.
ANALYSIS, PRESENTSTION AND INTERPRETATION 13:- Companies are ranked on the basis
of the transportation facility provided by them:-
Company Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Total (Retailers)
Lafarge 70 65 28 25 12 200
Konark 23 25 15 72 65 200
Ultratech 40 70 65 25 0 200
Acc 20 67 90 20 3 200
Ambuja 15 14 45 90 36 200
Century 85 78 37 0 0 200
Grasim 80 75 38 7 0 200
Duncan 95 62 43 0 0 200
Analysis and Interpretation: - Transportation facility is a very vital factor fo
r a brand to be successful in the market; Lafarge cement has proved itself in th
is area as they are having the best reach in the urban area not in the rural are
a. Q Rank the companies on the basis of their cement delivery time?
Company Rank
Lafarge
Konark
Ultratech
Acc
Ambuja
Century
Grasim
Duncan
SWOT –Analysis SWOT-analysis is done to understand the external and internal envir
onment of the organization. SWOT, which is acronym for strength, weakness, oppor
tunity and threats is also known by TOWS-analysis. Though such an analysis, is s
trength and weakness exist within an organization can be matched with the opport
unity and threats operating in environment , so that an effective strategy can b
e formulated. An effective organizational strategy, therefore, is one that capit
alizes on the opportunity through the use of strength and neutralizes the threat
s by minimizing the impact of weakness. Below is the SWOT- analysis of Lafarge I
ndia Pvt. Ltd. in cement market.
SWOT ANALYSIS
Strengths
High quality cement
Good packaging
Strong distribution network
Advanced technologies
Eco friendly.
Weakness
Need of more market expansion.

Need of international marketing

Not able to use foreign technologies in full swing.

Opportunities
Acquisition of DLF cement and ACC ‘s stakes
With increase in G.D.P. growth rate country will need more roads ,ports , houses
etc.
They get a chance to set up their plants at the nearest area of mines.
Special Awards
Ranked as 4TH best managed company in India by Asiamony,in 1996.
National quality award for outstanding pollution control.
Cement national award for best energy performance in industry.
Special expert awards in 1995 and 1996.
Various other productivity and mines safety awards.
Threats
Lenders unwilling to find new cement plant
Drought of many parts of the country has reduced demand from 21% to 11%.
Production cost increases:-due to increases in price of power ,freight ,coal, di
esel etc.
Other cement manufacturer company i.e. ACC, L&T etc.
Environmental Analysis Porter’s Model

Chapter- 4.
MARKETING IN ACC

4.1 Basic concept:

“Marketing is a basic that, it can’t be consideration a separate function. It is th
e whole business seen from the point of view”.

The world economy has undergone a radical transformation in the last two decades
. Geographical and cultural distance have shrunk significantly with the improvem
ent in the production, transportation and communication. These advances have per
mitted companies to widen substantially both these markets and their suppliers s
ources. And thus the role of marketing becomes wide.
Marketing is the specialization subject of BBA Curriculum. When aflood of consum
er product are coming into the market, every company needs people specialized in
marketing to promote their product.
“ Marketing is to convert social needs into profitable opportunity”
The 21st century is the era of Advertising, Marketing and sales promotion. Marke
ting is to convert social needs into profitable opportunities. As it is said “Mark
eting thinking starts with the needs and wants”.
Apart from basic necessities of air, water, shelter, and clothing, every person
has some desire of recreation and entertainment. They have strong preference for
parttcular brand of basic services. Marketing serves as the link between the so
ciety’s needs and its pattern of industrial response.

4.2 Market:
It is important to note that the how of the term market is not on the place, rat
her it is on the meeting of buyer and seller. Since, conventionally the buyers u
sed to meet the sellers at a physical location, the term market to buyers used t
o meet the sellers at the physical location, the term market began to acquire us
ed to refer to a place, however, it is not correct to do so. Buyers & sellers ca
n conduct business without meeting at a place, by telephone, mail, and now Inter
net.
4.3 Customer:
Market is not possible without customers or buyers. Customers refer to the peopl
e or organization that seek satisfaction of their needs and wants.

4.4 Marketers or Seller:

If the customer is the seeker at satisfaction, the marketer is the deliverer or
provider of satisfaction. In the normal usage, the provider of goods or services
, called seller.

4.5 Marketing:
The important elements for a marketing exchange to take place are:
• Presence of an at least two parties: Buyer and seller or customer and marketer o
r offeror and taker.
• Both parties must have something viewed valuable by each other.
• Both parties are free to accept or reject the offer.
• Each party is capable to communication and delivery.

4.6 Business Concept:

Marketing efforts may be guided by different philosophies like:

A) Production Concept
Some firms believe that potential exchange would be realized when the products a
re in expensive and are widely available.

B) Product Concept
The product concept propose that the way to realizing business goals lies in mak
ing products that are of high quality.

C) Selling Concept
Some firms organize their efforts according to selling concept. It holds that cu
stomers if left alone would not buy or not buy enough of a firm’s products.

D) Marketing Concept
The pillars of the marketing concept are:
• Identification of market or customers who chosen as the target of the marketing
efforts.
• Understanding needs and wants of customer in the target market.
• Development of product and services for satisfying needs of the target market.
• Doing all this at profit.

E) Societal marketing concept

The marketing concept is extended to include the social goals in the need satisf
action process. That is , the firm must perform marketing in a fashion that well
being is enhanced.
4.7 MARKETING MANAGEMENT

Marketing management seeks to make marketing a corporate way of life and philoso
phy of business organization and operation. It is done to help customers solve t
heir diverse consumption problems in ways compatible with the objectives of the
firm.

4.8 MARKETING AND SELLING

In common, parlance people often take marketing and selling to be the same. Sell
ing and marketing differ in terms of their goals and the means to be employed in
achieving them. If some one wants to find out whether a player in the market is
a seller or marketer then his goal and how he tries to achieve the same need to
be ascertained.
4.9 FUNCTIONS OF MARKETING
Marketing helps the firm to realize its profit goal by actualizing potential exc
hange with the customers. More especially the following are function involved in
marketing.
1) Marketing research
2) Product planning
3) Buying and assembling
4) Packaging
5) Storage and warehousing
6) Transportation
7) Promotion and selling.
4.10 THE MARKETING MIX
The marketing mix refers to the ingredients or the tools or the variables, which
the marketer mixes in order to interact with a particular market.

a) Product mix
When a firm introduces a number of product over time gradually its offerings bec
ome many. that is the firm becomes a multi product company. The total number of
product and items that a particular marketer offers to the market is called pro
duct mix.
• Branding
• Brand Name Strategies
• Trade Mark
• Packaging
• Labelling

b) PRICE MIX
In a marketing exchange, price is the value, which a buyer passes on to the sell
er in lieu of the product or service provided. The factors that must be taken in
to consideration are:
• Organizational Objectives
• Cost
• Competition
• Customer Demand
• Pricing Strategies
c) PLACE MIX
Place in the context of marketing mix refers to a set of decisions that need to
be taken in order to make the product available to the customers for purchase an
d consumption. If the products are not made available to the customets at the ri
ght place, in right quantity and in right time, the customers would not be able
to buy them.
• Channel of Distribution
• Channel Levels
• Factors determining choice of channels
1. Market related factor
2. Product relater factors
3. Company related factors.
• Physical distribution
• Decisions in physical distribution
1. Transportation
2. Inventory
3. Warehousing
4. Order Processing
d) PROMATION
Once the product has been manufactured, priced rightly and is distributed, the n
ext task of the marketers is to inform potential customers about the product and
persuade them to buy the same. It concern with the activities that are undertak
en to communicate with the both customers and the participants.
• Media Selection
1. Newspapers
2. Magazines
3. Television
4. Radio
5. Out door Display
6. Internet
• Sales Promotion
1. Rebates
2. Discounts
3. Refunds
4. Premiums
5. Quantity Deals
6. Sampling
7. Contests
8. Free in Mail Premium
9. Packaged Premium
10. Container Premium
5.1 MAJOR PLAYERS AND THEIR STRATEGY
The key players in the country include ACCL limited, Larsen& Turbo, Grasim Indus
tries, Gujarate Ambuja Cement and India cement Limited. The major players in the
cement industry have posted encouraging numbers for Q’3 FY’06 riding on the buoyant
demand for cement consumption due to resurgence of the construction activities
across the country post mansoon period. Robust volume growth as well as apprecia
tion of the cement prices in almost all parts of the country helped the industry
to record a strong performance.

Fig no. 1 Group-wise installed capacity in (Million tons) of Companies

5.2 NATURE OF MARKET COPETITION AND STRATEGIES

A cement industry was profitable one time many businessmen changed their product
line to cement industry looking at the profit of the cement company. At that st
age many cement companies came into existence to meet the requirement. As this w
as a long-term investment in the industry so many companies are facing close com
petition in the particular scenario. To sustain in the market many companies are
reducing their price and giving value added products to keep intact with their
costumers. Continuous technological upgrading and assimilation of latest technol
ogy has been going on in the cement industry. Presently 93% of the total capacit
y in the industry is based on modern and environment – friendly dry process techno
logy and only 7% of the capacity is based on cold wet and semi – dry process techn
ology to reduce down their manufacturing cost. Maintaining this lead calls for h
arnessing the resources and expertise of the company – from applied research and p
roduction to marketing.
ACC Limited has high efficiency state-of –art pollution control equipments and dev
ices. Each of its manufacturing units has a separate environment section managed
by a qualified environmental engineer and supporting staff. Our plants, mines a
nd townships demonstrate the company’s successful endeavors in greening activities
as aforestation, tree planting, horticulture, vegetable and cultivation apart f
rom basic landscaping designed to enrich and beautify the environment. Cleaner m
ining techniques have helped safeguard and conserve mineral resources. In additi
on, we have taken other positive measures such as topsoil conservation, efficien
t water management system and the treatment of wastes, sewage and effluents. Som
e of our plants have become near self reliant in their water requirements. ACC h
as achieved spectacular results in the utilization of two hazardous and pollutan
t industrial waste – namely slag from steel plants and fly – ash from thermal power
stations – to make blended cements that have conserved lime stones resources. Over
the years, ACC has won several prizes and certificates of merits for environmen
tal measures undertaken at its various plants and mines. In particular for progr
ams involving greening, forestation, rehabilitation of mines, noise abatement an
d other visible measures such as tree plantation and water management.

5.3 NATURE OF THE INDUSTRY

India is the world’s second largest cement producing country after China. The indu
stry is characterized by high degree of fragmentation that has created intense c
omparative pressure on price realizations. Spread across the length and breath o
f the country, there are 120 large plants belonging to 56 companies with an inst
alled 135 million tons as on march 2002.
Group-wise Installed Capacity (approx.)
Companies Mn tons
L&T 16.00
ACC 18.00
Grasim Industries 13.00
Gujarat Ambuja 12.5
Indian Cement 8.06
J.K. Group 5.87
Lafarge India Ltd. 44.49
Madras Cement 4.82
Century Textiles 4.70
Jaypee Cement 4.20
Birla Corp. Ltd. 4.11
CCI Ltd. 3.85
Zuari Agro 3.15
U.P. State Cement 2.59
Mehta Cement 2.36
Kesorma industries 2.10
Mysore Cement 2.10
Orient Paper Ind. 2.00
Andhra Cement 1.24
Mangalam Cement 1.00

5.4 Quality Policy

• Satisfy Customer fully & continuously by supplying products as per their require
ment.
• Comply all relevant requirements of quality management system.
• Provide framework for establishing quality performance.
• Continual improvement in quality performance by periodic evaluation and review o
f quality policy and objectives for continuing suitability.
• Comply with all relevant rules and regulations pertaining to product.
 Questionnaire of Market Survey

HELP US TO SERVE YOU BETTER

Name of the firm:

Ownership Type & Name:
Contact Details:
Mobile No:

1.Type of Outlet: Cement / Non-cement

2.Dealer’s Classification:
A) ACC (Exclu)
B) Non-ACC (Excl)
C) ACC (MB)
D) Non-ACC (MB)
E) Sub Dealer (Excl)
F) Sub Dealer (MB)
3. How many years you have spent in this cement business?

MICRO MARKET POTENTIAL

A) Rate the location of the Shop?
1.) POOR
2.) AVERAGE
3.) GOOD
B) Rate cluster Growth Rate:
1.) LOW
2.) AVERAGE
3.) HIG
INFRASTRUCTURE DETAILS
Manpower Details:
A.) How many people do you have/as for?
1. Collection
2. Shop Management
3. Laborers
B.) Other Recourses (Plz give nos.):
1. Trucks
2. 2Whlrs
3. VAN
4. THELA
5. AUTO
6. Other

4. Do you have a home delivery system from yours counter/ Godown or your custome
r picks up himself (in %)?
1. Pickup
2. Delivery
5.What are the other construction products you are dealing with?
1. Bricks
2. Aggregates
3. Sand
4. Tiles
5. Paint
6. Hardware
7. Other

6. Please Rank the top three profit giving products you deal with:
A. ____________________
B. ____________________
C. ____________________
7. How much does cement contributes to your total sales (in %)?
_________________________________________________
8. Customer type you are dealing with and their lifting (Tns/Month):
1. IHB
2. Projects
3. Sub-Project
4. Others
9.You are the Authorized Dealer for:
1. ACC
2. AMBUJA
3. UTCL
4. BIRLA PLUS
5. LARAGE
6. Others
10. Please give a brief on present and past sales performance Brand wise:
Avg.tns/mt
2004
W/S RE
2005
W/S RE
2006
W/S RE
2007
W/S RE
ACC
AMBUJA
LARAGE
BIRLA+
UTCL
Others
Total

11. How many Sub Dealers you are supplying to at this time?
__________________________________________________

12.What factor is more important to you? (give 1 as most important & 5 as Least
Important in the scale of 1to5)
1. Brand Pull
2. Sales Force Support
3. Cash Incentives
4. Non-Cash Incentives
5. Services
6. Logistic Support
7. Marketing Initiatives
8. Credit Support

13. Out of 10 Customers coming to your counter demand of:

1. ACC
2. AMBUJA
3. LAFARGE
4. UTCL
5. BIRLA+
6. OTHER
14. What are the problems you visualize with ACC?
AREA PRODUCT CREDIT TERMS PRICING NON CASH BENEFITS LOGISTIC SUPPORT
MKTG INITIATIVES
RANK
COMMENTS

15.What are the competitors doing differently?( Give the ranking on a scale of 1
to 6 taking 1 to be highest focus and 6 is to be lowest )

AREAS PRODUCT CREDIT TERMS PRICING NON CASH BENEFITS LOGISTIC SUPPORT
MKTG INITIATIVES
RANK

16. How can ACC improve its sales?

RANK FOCUSED AREA
PRODUCT
CREDIT TERMS
PRICING
NON CASH INCENTIVES
LOGISTIC SUPPORT
MKTG. INITIATIVES

ANALYSIS AND INTERPRETATION

Q 1. Type of Outlet: Cement / Non-cement

1.1 Graph shows outlet of Cement

Analysis and interpretation

It shows 60% of the dealers of the company are deals with cement outlet and 40%
of the dealers using Non-cement outlet.
Q 2. Dealer’s Classification:
A) ACC (Exclu.)
B) Non-ACC (Excl)
C) ACC (MB)
D) Non-ACC (MB)
E) Sub Dealer (Excl)
F) Sub Dealer (MB)

1.2 Graph Shows Classification of dealers

Analysis and interpretation
This Graph Shows the Classification of Dealers, 30% Dealers are comes under cate
gory of ACC (Exclusive) these dealers deals with only ACC cement and 20% Dealers
comes under the category of Non-ACC (Exclusive) they deals with other brands ex
cept Acc Cement.
20% Dealers comes under Non-ACC (MB) and 15% dealers comes under Non-ACC (MB), t
hese dealers deals with Mixed brand of Acc Cement and they also deals with other
brands.
 Another classification of dealers are Sub-Dealer (Exclusive), after analyzing i
t is 10% and the Sub-Dealers Mixed Brand is 5%.
3. How many years you have spent in this cement business?
1.3 Graph Shows number of years spent in cement business
Analysis and interpretation

This graph shows classification of duration of Dealers in Cement Business, 25% B

usinessmen doing their cement business between 0-3 years and where 33% Businessm
en doing their Cement business between 4-7years.
On the other hand 22% Businessmen continuing their business under 8-10 years and
20% businessmen doing their business Above 10 years.

MICRO MARKET POTENTIAL

A) Rate the location of the Shop?
1. POOR
2. AVERAGE
3. GOOD

1.4 Graph Shows location of shop

Analysis and interpretation

This Pie Chart clearly shows the location of shop in percentage that deals with
cement product. In this 43% dealers shop are located in Average Location, 37% de
alers shops are located in good location and 20% dealers shop are located in poo
r place.
B) Rate cluster Growth Rate:
1. LOW
2. AVERAGE
3. HIGH

1.5 Graph Shows growth rate of cement sales

Analysis and interpretation

This Pie Chart clearly shows the GROWTH RATE of shop in percentage that deals wi
th cement product. In this chart 45% dealers shop have high growth rate, 30% dea
lers shops have average growth rate and 25% dealers shop are located in poor pla
ce have low growth rate.
INFRASTRUCTURE DETAILS

Manpower Details:
A.) How many people do you have/as for?
1. Collection
2. Shop Management
3. Laborers
Analysis and interpretation
Number of people engaged in shop is depends on the capacity of godown and market
for different brands of cements, on the basis of their requirement they employe
e persons for collection, shop management and laborers. There is no specific num
ber is mentioned collection, shop management and laborers.
B.) Other Recourses (Plz give nos.):
1. Trucks
2. 2Whlrs
3. VAN
4. THELA
5. AUTO
6. Other

1.6 Graph shows resources of communication through transportation takes plac

e

Analysis and interpretation

This tally bars clearly shows other sources of Godowns in which for transportati
on of cement and delivery they uses 30% through Trucks, 20% through Thela and Au
to, on the other hand 2Wheelers and other sources is 15% and finally Van is 10%.

4. Do you have a home delivery system from yours counter/ Godown or your custome
r picks up himself (in %)?
1. Pickup
2. Delivery
 1.7 Graph Shows Pickup & Delivery system of cement
Analysis and interpretation
This Outdoor Bars shows delivery system of Godowns form counter to customer, Aft
er analyzing the data of delivery and pickup from counter , recorded 60% of tot
al sales of cement is delivered by dealers to customers destination on the other
hand 40% of total sales is pickup by customers him self.

5. What are the other construction products you are dealing with?
1. Bricks
2. Aggregates
3. Sand
4. Tiles
5. Paint
6. Hardware
7. Other

1.8 Graph shows other construction product in which dealers are dealing

Analysis and interpretation

This Pie Chart shows that other Construction Products in which dealers are deali
ng 30% Dealers are deals with hardware, 20% with Bikes with cement, 15% Dealers
deals with Aggregates with cements and on the other hand 8% are deals with paint
s, 10% deals with Tiles and 12% dealers are dealing with other product also alon
g with cement.

6. Please Rank the top three profit giving products you deal with:
A. ____________________
B. ____________________
C. ____________________

Analysis and interpretation

Top three profit making products are as follows:
• 1st Cement
• 2nd Bricks
• 3rd Hardware

7. How much does cement contributes to your total sales (in %)?
_________________________________________________

Analysis and interpretation

Cement contributes 60% in our total sales.

8.You are the Authorized Dealer for:

1 ACC
2 AMBUJA
3 UTCL
4 BIRLA PLUS

Analysis and interpretation

I am authorized dealer of ACC Limited, but I am also dealing with Ambuja cement,
Birla plus and some mini plant cements.

9. Please give a brief on present and past sales performance Brand wise:

Avg.tns/mt
2004
W/S RE 2005
W/S RE 2006
W/S RE 2007
W/S RE
ACC 800 500 950 600 900 400 1000 600
AMBUJA 400 300 800 400 700 500 800 550
LARAGE 700 400 900 350 950 600 950 600
BIRLA+ 500 200 750 400 800 550 875 450
UTCL 450 250 800 300 850 400 850 500
Others 600 300 700 500 700 300 900 700
Total 3400 1950 4900 2550 4900 2750 5375 3300
1.9 Table shows present and past sales performance brand wise of individual
dealers
Analysis and interpretation
Table shows four years performance of different brands e.g. 2004, 2005, 2006 and
2007, in which sales are classified in two different heads: Wholesale and Retai
l (Sales of all brands are in Avg.tns/mt). Comparison of all four years shows th
ere is stiff competition in market after analyses of sales record of individual
dealers, we find that there is competition between ACC Limited, Ambuja, Lafarge
and Birla+.
In spite of all these ACC Limited maintains their sales record from 2004 to 2007
, there is hues increment in sales of Acc cement in 2007, all these are possible
only due to proper distribution of cement product, adaptation of flexible polic
ies, analysis of market demand and quality of product.

SUGGESTIONS

ACC should come out with such an advertisement, which can block the customers mi
nd and can change the customer’s perception about the product.
In the new market scenario price is considered as the main attribute of a produc
t, which can stimulate maximum number of customers.
More improvement is required in the distribution network in the out skit and in
the remote areas, because in the peak season the small dealers are taking goods
twice or thrice and in between if the distributors could not supply them, the co
mpetitors will get the opportunities to supply the goods.
Salesmen should have good interaction with dealers, which result company in incr
eases sales.
Company executives should visit the counter on weekly basis.
Executive should take the feedback from the dealers about the services of the sa
lesman and distributors.
The entire ACC product should be displayed at one place so that the customer can
be aware about the different types of cement.
The company has to take serious step for changing its packaging style as many lo
cal companies are imitating the same and confusing the customers.
Regular visit of sales force is required to solve the problem of dealers in the
market at the right time.

Chapter-5
CONCLUSION
The conclusion of this project report is that ACC Limited company 7 its product
are the profitable not only in India but also in the whole world. Its main compe
titor is Lafarge. In Duopoly market cement product has 65% market share. Keeping
pace with changing times and an ever-growing need for specialized services, ACC
has begun offering its marketing expertise and distributaries facilities to oth
er producers in cement and related areas. However a precondition of all such agr
eement 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 qualified civil engineers. These, in addition to
handling after-sales servicing, function as advisory bodies that can help custo
mers, make the right choice of cement for a specific area of application. ACC ca
n provide expert advice on getting the best value from cement and offer assistan
ce on related issues in civil construction projects.
Besides this, technical books/booklets on cement, concrete and building construc
tion and maintenance are regularly must be available for the benefit of the cust
omers. In addition to this, ACC also publish free booklet, which profiles the la
test information on concrete research, design, construction and maintenance.
Most outlet owners are experienced and old hand in this business. The scope for
increasing the presence (Channel Members) exists for all companies through ACC a
nd JP are in a relatively comfortable position here. No. of dealers of ACC is mo
re in comparison to other cement brand. Even if JP is at per with ACC. Generally
companies are using one level of channel of distribution. But sometime zero lev
el is used also.e.g.
Manufacturer – Dealer – End-user
Manufacturer – End-user
Zero level is any possible when marketing department gives order to end-user to
take their cement from manufacturing unit. The co. ( A.C.C or about cement brand
) produce facilities to his channel members such as provision for settlement of
claims regarding quality, less wt. Of packages and lumps formation of the produ
ct for a particular period of time. ACC is preferred because it is the market l
eader amongst the cement while JP is preferred due to market demand. JP does the
maximum sales promotion (i.e advertisement) in the opinion of dealers. But ACC
does not give more advertisement to promote sales. Mode of transportation of cem
ent by road is better one in the dealers whose shop are near to railway godown.
Minimum order acceptance by every company is 9 tonnes i.e. one truck company of
any cement don’t accept less then 9 tonnes.
From selling point of view ACC brand is no 1, JP has got 2nd rank and TATA has g
ot 3rd rank. It means that selling ACC brand cement is easier to other.

LIMITATIONS OF THE STUDY

In order to have a clear-cut idea of the market activities in ACC limited, Gujar
at unit, I surveyed dealers and customers during my course of study. I prepared
a questionnaire, which has been included in the Annexure at the end of this repo
rt. While preraring this questionnaire, I tried my level best to cover all the a
spects of the marketing activities.

. BIBLIOGRAPHY
Books: BOOKS
1. Research Methodology: C.K. Kothari
Wishwa Prakashan Darayaganj New Delhi 2nd Edition-1995
2. Marketing Management: Philip Kotler
Prentice- hall of India Pvt. Ltd. New Delhi-110001 8th Edition -1995
Kotler, Philip.” Marketing Management” Prentice hall of India. Edition-IX
Drucker, Peter. “ Management Function & Behaviour”, BPB, Edition-III
Journal:
Singh, S.K.” A view across global marketing”. India Journal of commerce. Vol-54
Indian management ( All India management Association ), Jan 2006 issues.

Web-Sites:
www.Acclimited.com.in
www.askACC.com
www.channelmgt.com