Name- Reshma Singh Class- HR Roll No.

- 10 Project of Strategic Management Topic- ACC Limited

ACC Limited

Introduction ACC (ACC Limited) 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, 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 is the only cement company that figures in the list of Consumer Super Brands of India.

Heritage - A Corporate Saga Ours has been an interesting story - one that inspired a book. ACC was formed in 1936 when 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. In a sense, the formation of ACC represents a quest for the synergy of good business practices, values and shared objectives. The use of the plural in ACC's original name, The Associated Cement Companies Limited, itself indicated the company's origins from a merger. Many years later, some stockbrokers in the country's leading stock exchanges continued to refer to this company simply as 'The Merger'.

ACC's

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Sir Nowroji B Saklatvala was the first chairman of ACC. The first Board included distinguished luminaries of the Indian business world of the time - names like J R D Tata, Ambalal Sarabhai, Walchand Hirachand, Dharamsey Khatau, Sir Akbar Hydari, Nawab Salar Jung Bahadur and Sir Homy Mody among others. Holcim - A New Partnership 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, the Tata group sold all 14.45 per cent of its shareholding in ACC in three stages to subsidiary companies of Gujarat Ambuja Cements Ltd (later called Ambuja Cement Ltd), who then became the largest single shareholder in ACC. A new association was forged between ACC and the Holcim group of Switzerland in 2005. In January 2005, Holcim announced its plans to enter into a long-term strategic alliance with the Ambuja Group by acquiring a majority stake in Ambuja Cements India Ltd. (ACIL), which at the time held 13.8 per cent of the total equity shares in ACC. Holcim simultaneously announced its bid to make an open offer to ACC shareholders, through Holdcem Cement Pvt Limited and ACIL, to acquire a majority shareholding in ACC. An open offer was made by Holdcem Cement Pvt. Limited along with Ambuja Cements India Ltd. (ACIL), following which the shareholding of ACIL increased to 34.69 per cent of the Equity share capital of ACC. Consequently, ACIL filed declarations indicating their shareholding and declaring itself as a Promoter of ACC.

Holcim is the world leader in cement as well as being large suppliers of concrete, aggregates and certain construction-related services. Holcim is also a respected name in information technology and research and development. The group has its headquarters in Switzerland with worldwide operations spread across more than 70 countries. Considering the formidable global presence of Holcim and its excellent reputation, the Board of ACC welcomed this new association. Cement House- The Head Office building

ACCs Head Office - Cement House, 121 Maharshi Karve Road, Mumbai. ACCs registered office was first located at Esplanade House in South Mumbai, a graceful edifice that still stands out in its neighbourhood. The head office then shifted to its own premises in Cement House shown here. The address of this stately building was then Number 1, Queens Road, Churchgate. An all-India competition in 1938 had invited leading architects of the time to send in their designs of which this elegant design made by Ballardie Thompson & Mathews was chosen as the winning entry. Work on its construction began in 1939 and was completed during the War period. The building was occupied by the Royal Air Force and vacated only in 1946.

In 2009, a unique project, has transformed Cement House into an energy efficient environmentfriendly building. Its attractive refurbished faade now houses an ultramodern office equipped with space-saving modular workstations, access control and intelligent lighting with motion and light sensors, waste management systems and water saving devices set amid greenery and a central atrium that further expands the sense of light and space. Human Resources ACC has a large workforce of about 9,000 people, comprising experts in various disciplines assisted by a dedicated workforce of skilled persons. ACC employees, referred 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 display a strong sense of loyalty to the Company and their special stellar qualities as value-adding human capital are well known in the industry. ACC has clearly stated guidelines concerning recruitment, termination, career advancement, performance appraisal, professional and employee ethics and code of conduct. The Companys personnel policies and processes enshrine equal opportunities 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 process for employee consultation and participation in organizational development and policy formulation. Corporate Social Responsibility Today we define Corporate Social Responsibility as the way a company balances its economic, social and environmental objectives while addressing stakeholder expectations and enhancing shareholder value. But ACC has undertaken social volunteering practices almost from its inception, long before the term corporate social responsibility was coined. The companys earliest initiatives in community development date back to the 1940's in a village on the outskirts of Mumbai while the first formal Village Welfare Scheme was launched in 1952. The community living around many of our factories comprises the weakest sections of rural and tribal India with no access to basic amenities.

CENTRAL PROCUREMENT ACC has a countrywide spread of 14 modern cement plants. This large network of manufacturing units consumes a wide spectrum of inputs about 60,000 different items ranging from Coal, Gypsum, Slag, Packaging material (bags), Refractories, Steel, Grinding Media, Electrodes, Cables, Bearings, Conveyor Belts, Spares of various mechanical, electrical and instrumentation equipment, Mining Equipment and their spares and explosives. ACC has a vendor base of more than 6000 suppliers spread across the country. A team of professionals at Corporate, Regions and Plant Level manages the procurement function. The function is organized so as to derive maximum value for the company through economies of scale from central pooling and procurement of some inputs at the corporate level while meeting individual operational requirements at plant level. The Procurement function comprises a Central procurement team at the corporate office for the requirement of major inputs for the operations of cement plants.

ORGANIZATION & STRATEGY Organization Profile ACC Limited, India's most recognized name in cement and concrete, celebrates its Platinum Jubilee this year, with 75 years of service to the nation and to all the stakeholders it has served. The company's operations are spread throughout the country with 16 modern cement factories, more than 44 ready mix concrete plants, 21 sales offices and a countrywide distribution network of more than 9000 dealers. Its workforce numbers about 9000 employees. ACC is today closely associated with the Holcim Group of Switzerland which owns just over 50% of the company's total equity. Pioneer and Trendsetter ACC has been a pioneer and trend-setter in cement and concrete technology and leads the industry in the manufacture of environment-friendly Blended Cements namely Portland Slag Cement and Portland Pozzolana Cement that utilize industrial wastes such as slag from steel plants and fly ash from thermal power stations. The role of Blended Cements in reducing CO2 emissions, and ACC's leadership in this respect, has been recognized by environmentalists. It was first in India to offer distribution of cement in Bulk and Ready Mix Concrete, which has helped change the pace of large construction projects in the country. ACC has a unique track record of innovative research and development, product development and project engineering services. Sustainable Development ACC vigorously pursued its goal of Sustainable Development (SD) through exacting standards in environmental conservation, emission controls, maximizing energy efficiency, the promotion of renewable energy, the pursuit of alternative fuels and raw materials, waste management, safety, knowledge advancement and supporting sustainable community development. ACC actively promotes the use of alternative fuels and raw materials and offers total solutions for waste management through co-processing of industrial wastes and segregated Municipal Solid Waste in cement kilns. The triple bottom line is an integral element of organisations agenda.

Community Development We have a rich tradition of engaging with the community living around our operations by encouraging their active involvement in various development schemes. A high point of our engagement is the creation and deployment of Community Advisory Panels comprising representative groups of local residents which has proved to be effective in ensuring the community's faith in our development schemes. Our community welfare measures have helped us reach out to nearly 100 villages across India and provide basic health care and education. Our development schemes focus on creating sustainable livelihoods, including those linked to natural resource management, providing education for society's future, women empowerment, rural infrastructure development, and capacity building for better local governance. In addition to encouraging a high proportion of local participation, we have partnered with NGOs, local bodies and Government departments.

A Responsible Corporate Citizen ACC's track record of supporting community welfare and livelihood programmes, its high ethical standards in business dealings, its commitment to environment-friendliness and its selfexacting norms for sustainable development have won it acclaim as a responsible corporate citizen. ACC has made significant contributions to the nation building process by way of quality products, services, sharing its expertise and exemplary corporate practices. Sustainable Construction ACC continued to demonstrate active concern for sustainability in the construction sector through the use of environment-friendly practices and building materials. Holcim Global Awards for Sustainable Construction The company took the lead in promoting the third cycle of the prestigious Holcim Global Awards for Sustainable Construction in the country which opened for entries on July 1, 2010 and closed at the end of March this year. The competition sought to identify projects demonstrating a balance of environmental, social and economic performance while exemplifying architectural excellence and easy transferability. Not limited to structures, the contest was widely inclusive and open to concepts related to urban design, infrastructure, landscaping, materials, products and construction technologies. ACC's team of customer services personnel mainly civil engineers promoted the competition with gusto among professionals, students and academicians alike. Their effort was instrumental in widening the understanding of the basic concept of Sustainable Construction while helping the company build relationships among the target groups. The company was successful in garnering the largest number of entries from India as compared to the rest of the world.

Green Buildings Following its success with the innovatory makeover of Cement House into the country's first old structure to receive LEED Gold certification, ACC added two more green buildings to its fold in 2010. The first called La Residency at Thane, is a 45 year old former residential apartment block now redesigned and converted into a modern hostelry for participants of the ACC Academy, our learning centre. La Residency received Platinum pre-certification under the IGBC Green Homes Rating of the Indian Green Building Council (IGBC) in March 2010. Later in the year, the Chandrapur Central Control Room was completed as an essential part of the new Chanda cement project. This is the first green building which is functionally part of a manufacturing establishment. This structure received LEED INDIA New Construction PLATINUM 2011 certification. Promoting Concrete Roads Since 2009, the company has undertaken a campaign through seminars and workshops to advocate the use of concrete roads in terms of its significant sustainable benefits to the economylower long term costs and lower impacton environment. Four seminars were conducted during the year, one on National Highways in New Delhi and others in state capitals for State Highways and City Roads in Lucknow, Bengaluru and Bhopal. Large numbers of senior government officials from PWD, Municipal Corporations, NHAI, Planning commission, contractors and consultants attended the seminars. These seminars generated considerable interest leading to follow-up interactions and exercises with road building authorities. The seminars have been effective in highlighting the fact that concrete has proved to be a more effective and environment-friendly road building material as compared to bitumen which is the most widely used material for Indian roads. Mass Communication of Environmental Benefits of Blended Cements ACC continued to propagate the advantages of blended cements at different forums. The company remains the country's largest manufacturer of blended cement. As part of a communication plan targeted at decision makers and influencers in commercial and infrastructure sectors the company has produced a short film and supporting literature to promote the usage of Blended cements as a superior environment-friendly alternative to ordinary cements. The film is well received.

Research on Sustainable Construction for Indian Habitats In a significant step, ACC signed a memorandum of understanding with IIT Bombay in February 2011 to examine and recommend innovative approaches to sustainable construction, technology and design for affordable habitats. As part of this collaboration, IITB will undertake an actionable research on sustainable habitats that incorporate regional adaptations and promote interdisciplinary approaches to sustainable construction in India. As a curtain-raiser of this initiative, ACC organized a seminar in association with IIT Bombay, Holcim Foundation and Ambuja Cements to initiate a useful dialogue on how technologies and design can make a difference to building more sustainable habitats in India. The seminar, which was inaugurated by the world renowned architect Charles Correa, brought together a variety of stakeholders from the building and construction industry building materials suppliers, architects, civil engineers and students. Sustainable Development Reporting ACC released its first corporate sustainable development report on World Environment Day in June 2008. The second report was released on World Environment Day 2010. A Web update was released in June 2009 and now in June 2011. Our reports demonstrate transparency and disclosures of a high order for the benefit of our stakeholders and an earnest resolve for our performance to be assessed on the basis of the Triple Bottom-Line framework. This is the fourth Sustainable Development Report. This is released as web update and covers year 2010. ACC publishes Sustainable Development Report, since 2007. Reporting Cycle: The Company has adopted a two-year cycle for releasing print versions of its sustainability performance. In the intervening year, an electronic version of a report is made available on the company's website as a web update. Accounting Year: ACC follows the calendar year January to December for the purpose of reporting its financial accounting and performance. The same period has been used for reporting its sustainability performance. Report Boundaries: The scope of our reporting on various parameters is limited to the company's cement business covering all plants of the Company. The report does not include information pertaining to the company's other subsidiary companies. Reporting Framework: The report is prepared using the GRI G3 Reporting Framework. The 2010 web update primarily covers core performance indicators of GRI G3 guidelines.

UN Global Compact: ACC is a signatory to the United Nations Global Compact. Wherever possible and relevant we have attempted to include reference in the report to aspects that address specific UN Global Compact principles. Hence this report will also serve the purpose of being read as a detailed Communication On Progress (COP) as required by signatories to the UN Global Compact. Data collation: The Company now has a robust management information system and database based on SAP system that went live in February 2007. All the data used in this report were collated from regular monitoring reports sent by process owners, units, functional departments or by reference to our database and consolidated into company totals wherever required. Additional Information: Readers are invited to visit the pages of our website at www.acclimited.com for more information on the company, its financial performance, products and subsidiary companies. Details of the Cement Manufacturing Process are also available on the Company's website. Additional information may also be made available on request.