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A REPORT ON ORGANIZATION STUDY AT ACC LIMITED, MADUKKARAI CEMENT WORKS,

COIMBATORE

An Organization study Report submitted to Mahatma Gandhi University for the partial fulfillment of the Award of Master of Business Administration 2011-2013

Submitted By CHRIS JOSE (Reg No. 121115)

Under the Supervision of Dr. Saji M Abraham

SCHOOL OF MANAGEMENT AND BUSINESS STUDIES MAHATMA GANDHI UNIVERSITY


PRIYADARSHINI HILLS P.O KOTTAYAM 686 560 KERALA

ACC Limited Madukkarai Cement Works

SCHOOL OF MANAGEMENT & BUSINESS STUDIES MAHATMA GANDHI UNIVERSITY


PRIYADARSHINI HILLS P.O KOTTAYAM 686 560 KERALA

CERTIFICATE
This is to certify that the report on ORGANIZATION STUDY AT ACC LIMITED-MADUKKARAI CEMENT WORKS, COIMBATORE, submitted to Mahatma Gandhi University in partial fulfillment of the requirements for the award of the degree of Master of Business Administration is a record of the original work done by Mr. Chris Jose (Reg No: 121115) during the period of his study in the School of Management and Business Studies, Priyadarshini Hills, Kottayam under my supervision and guidance and the report or any part thereof has not been submitted elsewhere for any other degree, diploma or other similar title of any other University.

Place: Date:

Dr. K. Sreeranganadhan DIRECTOR

2 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

DECLARATION

I,

Chris

Jose,

hereby

declare

that

this

Report

on

ORGANIZATION STUDY AT ACC LIMITED MADUKKARAI CEMENT WORKS, COIMBATORE is my original work and that it has not previously formed the basis for the award of any Degree, Diploma or other similar title of any University or Institution.

- Chris Jose Place: Date:

Email: meandkrz@yahoo.co.in Mob: 9496333809

3 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

ACKNOWLEDGEMENT
The success that has been accomplished in my project would not have been possible without the timely help and guidance rendered to me by many people. This study became possible through the wholehearted co-operation of many persons and well wishers. I am grateful to Dr. K. Sreeranganathan, Director, School Of Management and Business Studies, Kottayam for permitting me to take up this report work on Organization Study. I am grateful to Dr. Saji M Abraham, Faculty co-ordinator, School Of Management and Business Studies, Kottayam for all the provision made available to me. I express my deep sense of gratitude to Shri R. Rajendrakumar sir (Manager HR), Mrs. Padma (Manager HR), Shri Maheshkumar Sir, (Assistant Manager HR) Ms. Neha Guptha (Quality control department), Ms. Nithra Yogi (AFR laboratory), Mr. Husain (Deputy Manager Procurement department) of M/s ACC Limited-Madukkarai Cement Works, Coimbatore and Shri Ninan Thayi sir (Manager Logistics), Mr. S.N. Vijayakumaran Nair (Sales Head), Mr. Prasad Parsewar (Dy. Manager Marketing) Mr. Jaxen K.J (Manager special projects) of M/s ACC Limited Sales unit, Edappally, Cochin for kind co-operation and assistance extended during my report work on Organization Study. I extend my sincere thanks to the Officials of the College Office and Library for providing the necessary facilities for completing this work. I am also thankful to my family and friends who supported me throughout the project work. I will be failing in my duty if I do not acknowledge the deep debt of gratitude I owe to the authors whose writings have provided an insight to the intricacies of the subject.

- Chris Jose

4 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

ABSTRACT
Organization study is usually conducted in a well structured and reputed organization. The basic objective of conducting organization study is simply to

understand and learn the actual structure and working of each and every department of an organization. The main purpose of the study is to observe, analyze and interpret ate the functions and procedures of each and every department of the selected organization.

From the study conducted in ACC Limited, Madukkarai Cement Works a basic idea of functioning of various departments of the company has got. Hence the organization study conducted in ACC Limited, helped to a large extent to experience the real work life situation in an organization. Cement is a binder, a substance which sets and hardens independently, and can bind other material together. The working of the cement plant has been studied in depth with the history of the plant, sources of raw materials, production of cement, functioning of various departments adopted.

5 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

CONTENTS SL No.
1

CHAPTER
CHAPTER--I

TITLE
INTRODUCTION

PAGE No. 7

CHAPTER--II

AN OUTLOOK OF--TYPE OF INDUSTRY

10

CHAPTER--III

COMPANY-- PROFILE

22

CHAPTER--IV

DEPARTMENTAL ANALYSIS* Production department * Quality control department * Finance department * HRM department * ARF department * Procurement department * General stores department * Environment department * CSR department * Maintenance department * System department * Marketing department * Internal audit section

45 48 62 78 91 112 119 122 129 136 140 147 152 166

CHAPTER--V

SWOT--ANALYSIS

168

CHAPTER--VI

EVALUATION AND SUGGESTIONS LEARNING EXPERIENCE

174

CHAPTER--VII

177

6 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works 8 CHAPTER--VIII CONCLUSION & BIBLIOGRAPHY 179

CHAPTER

INTRODUCTION

7 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

ORGANIZATION STUDY AT ACC LIMITED, MADUKKARAI CEMENT WORKS


INTRODUCTION
Organization Study helps to convert the theoretical knowledge and practical knowledge into experienced one. An organization is a social unit of people, systematically structured and managed to meet a need or to pursue collective goals on a continuing basis. Organizational study conducted by the School of Management and Business Studies is a training program that helps management students gain knowledge and practical working conditions of an organization. The purpose of training program is to have an exposure to the real life situations relevant to business areas and strengthen the conceptual knowledge gained from the industry. Organization study is usually conducted in a well structured and reputed organization. The basic objective of conducting organization study is simply to understand and learn the actual structure and working of each and every department of an organization. The main purpose of the study is to observe, analyze and interpret ate the functions and procedures of each and every department of the selected organization.

From the study conducted in ACC Limited, Madukkarai Cement Works a basic idea of functioning of various departments of the company has got. Hence the organization study conducted in ACC Limited, helped to a large extent to experience the real work life situation in an organization.

OBJECTIVES OF THE STUDY


Understand the structure of the organization 8 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works To understand the Functional Departments of the organization To know the plans, policies, and procedures of the organization To fulfill the requirements of the curriculum To familiar with the day to day activities of the organization To know how the functions of the various Departments co-ordinate To know how the Qualities maintained To know how HR is managed effectively To understand how the firm faces tight competitions To know the social responsibility of the organization

SCOPE OF THE STUDY


The organization study conducted in ACC Limited, Madukkarai Cement Works gave a basic idea of functioning of various departments of the company. It helped to understand the constraints and problems involved in carrying out a business successfully. The study gave the experience of working in an organization and also helped to understand the environment of the organization.

It helped to view and analyze the functioning of various departments and also helped to view the decision making and implementation strategies in an organization.

SOURCES OF INFORMATION
Primary data were collected through the personal visits and interview with the staff and executives of various departments of ACC Limited, Madukkarai Cement Works.

Secondary data were received from the Annual Report and Magazines of the company and from the website of the company.

LIMITATION OF THE STUDY

9 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works A detailed study was not possible because of the time constrains. However, efforts have been made to incorporate all aspects related to Organization Study in ACC Limited, Madukarai Cement Works. The study is based on the information supplied and inference that is made from the statement of experts. The techniques used for the analysis has its own limitations and these limitations have its own effect on the report also.

CHAPTER II AN OUTLOOK OF TYPE OF INDUSTRY

10 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

An Outlook of

Indian Cement Industry

Cement is one of the core industries which plays a vital role in the growth and expansion of a nation. The demand for cement depends primarily on the pace of activities in the business, financial, real estate and infrastructure sectors of the economy. Cement is considered preferred building material and is used worldwide for all construction works such as housing and industrial construction as well as creation of infrastructures like ports, roads, power pants, etc. Indian cement industry is globally competitive because the industry has witnessed healthy trends such as cost control and continuous technology up-gradation. The Indian cement industry is extremely energy intensive and is the third largest user of coal in the country. It is modern and uses latest technology, which is among the best in the world. Also, the industry has tremendous potential for development as limestone of excellent quality is found almost throughout the country.

INVENTION OF CEMENT Ever since civilizations first started to build, the world has sought a man made bonding material that would bind stones into a solid, formed mass. During the Paleolithic Age, men used to enjoy adequate shelter provided by nature. The Bronze Age witnessed the use of building materials from a clay based mixture and air hardening lime. The Egyptians advanced to the discovery of lime and gypsum mortar as a binding agent for building such structures as the Pyramids. The Greeks made further improvements and finally the Romans developed cement that produced structures of remarkable durability (Cement Association of Canada 2006). The secret of Roman success in making cement was traced to the mixing of slaked lime with Pozzolana, a volcanic ash from Mount Vesuvius. This process produced cement capable of hardening under water. During the Middle Ages this art was somehow lost. In the 18th century, big efforts started in Europe to understand why some limes have hydraulic properties (Cimenterie Nationale 2007). John Smeaton often referred to as father of civil engineering in England concentrated his work in this field and made the first modern concrete by adding pebbles as a coarse aggregate and mixing powered brick into the cement in 1759. A number of discoveries followed. It was in 1817 that Louis Vicat conducted work on the hydraulic nature of the lime-volcanic ash mixture. He was the first person to accurately determine the 11 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works proportions of limestone and silica required to make the mixture of cement. He published the results of his research, but did not apply for a patent. Finally, in 1824 Joseph Aspdin patented the basic process of slower-setting cement. He addressed this as Portland cement due to the fact that in appearance and hardness, it resembled the upper Jurassic rock found in the region of Portland, in southern England (Lafarge 2004).

CEMENT INDUSTRY IN INDIA The Indian cement industry is the second largest cement producer just behind China , but ahead of the United States and Japan. The government of India giving boost to various infrastructure projects housing facilities and road networks as a result of which the cement industry in India is currently growing at an enviable pace. It is also predicted that the cement production in India would rise to 262.61 MT. The Indian cement industry comprises of 140 large and, more than 365 mini cement plants , where majority of the production of cement (94%) in the country is by large plants. The industrys capacity at the beginning of the year 2009-10 was 217.80 million tones. During the period of AprilSept 2009, the Indian cement companies have produced 11 MT cement. The Indian cement industry has witnessed a phenomenal capacity addition to the tune of about 52 MT tones in the last two financial years which accounted for about 24% of the industrys capacity of 218 mn tones at the end of FY09. In the last two financial years, the cement industry has registered a double-digit growth in capacity addition compared to moderate growth of 3-7% registered during period FY 03-07. As a result, industrys capacity utilization rate which showed a rising trend up to FY07 has dropped to a level of 83% in FY09. In FY09, the GDP growth slowed down to 6.7% compared to the 9% growth reported in FY08. There is only one Central Public Sector Undertaking in the cement sector, i.e. Cement Corporation of India, which has 10 units. There are 10 large cement plants owned by various State Governments.

BEGINING OF INDIAN CEMENT INDUSTRY The attempt to produce cement in India dates back to 1889 when a Calcutta firm attempted to produce cement from Argillaceous (kankar). But the first organized effort on mass scale to manufacture Portland cement commenced in Madras (Washermanpet), in 1904, by South India Industries Limited (Cement Manufacturers Association 1964; Gadhok 2000). The factory could not succeed hence it failed. However, it was in 1914 that the first commissioned cement-manufacturing unit in India was set up by India 12 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Cement Company Limited at Porbandar, Gujarat, with an installed capacity of 10,000 tonnes and production of 1000 tonnes. Subsequently two plants; one at Katni (M.P.) and another at Lakheri (Rajasthan) were set up. The First World War gave positive stimulus to the infant industry. The following decades saw increase in number of plants, installed capacity and production. This period can thus be called the Nascent Stage of Indian cement industry.

The problem of supply outstripping demand was significant in early period of the industry. Problem of disposal of cement was aggravated by the prejudice with which indigenous cement was regarded. This was followed by a price war between the producers where they resorted to cutting down of prices and selling at below production cost. This situation forced many companies into liquidation. It was then when the government of India intervened into the market and referred the cement industry to the Tariff Board. The board recommended protection by government and cooperation among existing cement units. All these events resulted in formation of Indian Cement Manufacturers Association in 1925 whose main function was to regulate prices in the industry. In 1927, Concrete Association of India was formed whose two main objectives were to educate public about the use of cement and to play an active role in popularizing Indian cement. The next step in the direction of rescuing cement industry was the formation of Cement Marketing Company of India Limited in 1930 to promote and control the sale and distribution of cement at regulated prices. After all these initiatives, the sales increased along with more plants. In 1936, eleven companies, except Sone Valley Portland Cement Company Limited, merged to form Associated Cement Company Limited (ACC). In 1937, Dalmiya Jain Group set up five factories with installed capacity of 575000 tonnes and ACC added four more plants. With all these expansions, price war again started off which resulted into a significant decrease in prices. But in the post world war period, setting up of Department of Planning and independence of the country provided fresh impetus to the industry. The price and distribution control system on cement, implemented in 1956, aimed at ensuring fair prices to producers and consumers all over the country, thus reducing regional imbalances, and at reaching self-sufficiency within a short time period. Although due to slow growth in capacity expansion and rising cost in the industry, the government had to increase the fixed price several times. However, these price increases as well as financial incentives to enhance investment, showed little effect on the industry. In spite of the fact that government exercised no control over the Indian cement industry all through the Third Five Year Plan (1961-1967), growth was low due to inadequate retention price and lack of adequate financial resources to the existing companies.

CEMENT BUSINES----PERFORMANCE AT A GLANCE 13 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Production- million tones Sales volumemillion tones Sales value-Rs.crore EBITDA % 2011 21.37 21.52 8027.19 32.3% 2010 20.83 21.01 7282.87 25.5% Change % 2.6 2.4 10.2

CEMENT PRODUCTION AND GROWTH Domestic demand plays a major role in the fast growth of cement industry in India. In fact the domestic demand of cement has surpassed the economic growth rate of India. During 20082009 total cement consumption in India stood at 178 million tones while exports of cement and clinker amounted to around 3 million tones. However, cement consumption growth in FY09 at 8.4% has been able to maintain its multiplier factor with GDP growth at 1.25 times.

Growth in Cement Demand

Domestic Consumption Year on-Year Growth(%)

2010-11 178 8.4

Figures in Million Tones AprNov 2011 100 12.5

Cement production during April to January 2009-10 was 130.67 million tones as compared to 115.52 million tones during the same period for the year 2008-09. Despatches were estimated at 129.97 million tones during April to January 2009-10 whereas during the same period for the year 2008-09, it stood at 115.07 million tones.

Cement Production & Despatches

Description Cement Production Cement Despatches

2010-11

2009-10 (AprilJanuary) in MT 130.67 115.52 129.97 115.07

14 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

GROWTH OF INDIAN CEMENT INDUSTRY The extent of concentration in the Indian cement industry has increased over the years. This concentration is mainly because of the focus of the larger and the more efficient units to consolidate their operations by restructuring their business and taking over relatively weaker units. The following table shows the growth of Indian cement industry at the end of five year plan (including mini and white pants):

End Year of the Plan

Capacity (M.t.)

Production (M.t.)

Capacity Utilization (%)

3.28
Pre- Plan Period (195051) 1st Plan (1955-56) 2nd Plan (1960-61) 3rd Plan (1965-66) 4th Plan (1973-74) 5th Plan (1978-79) 6th Plan (1984-85) 7th Plan (1989-90) 8th Plan (1996-97) 9th Plan (2001-02) 10th Plan (2006-07)

2.20 4.60 7.97 10.97 14.66 19.42 32.13 45.42 76.22 106.90 161.66

67 92 86 91 74 86 72 74 72 73 91

5.02 9.30 12.00 19.76 22.58 42.00 61.37 105.26 145.99 177.83

15 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

REGIONAL CONCENTRATION Cement, being a bulk commodity, is freight intensive and transporting cement over long distances can prove to be uneconomical. This has resulted in cement being largely a regional play with the industry divided into five main regions, viz., North, South, West, East and the Central region. In terms of capacity historically, the southern region has always dominated the industry and is excess in capacity owing to the availability of limestone, but the western and northern regions are the most lucrative markets. East has most of the consumption of cement as of now due to growing infrastructure. When we look at the evolution of the industry, it can be seen that distribution of capacities of cement in India has now been more balanced thus reducing the concentration in the southern region of the country. In the Northern region, the major consumer is Uttar Pradesh with a highest growth rate of 31%. In the Eastern region, the major consumer is West Bengal, but the highest growth rate of 38% has been achieved by North Eastern states. In the Western region, although Madhya Pradesh is the highest producer of cement, the total consumption is highest in Maharashtra with a consumption of 12.29 million tones. In the Southern region, while the highest consumption takes place in Tamil Nadu followed by Andhra Pradesh, Karnataka and Kerala, the growth rate in consumption has increased by 21% in Andhra Pradesh, 17% in Kerala, 14% and 11% in Karnataka and Tamil Nadu respectively. In FY09, all the regions except the Western and the Northern region have outperformed the industry in consumption growth. The Eastern region continued its buoyant performance and registered the highest cement consumption growth of 11.3%.The Southern and Central regions also reported impressive double-digit growth of 10.4% in cement consumption. But, the Northern region has registered the lowest growth in the cement demand on yoy basis. Comparatively, poor demand growth registered by the Western region was on account of high base of the last year and also slightly subdued demand.

TECHNOLOGY UP-GRADATION 16 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works 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 total capacity is based entirely on the modern dry process, which is considered as more environment friendly. Only the rest 7% uses old wet and semi dry process technology. There is also a huge scope of waste heat recovery in cement plants, when lead to reduction is the emissions level and hence improves the environment.

COMPONENTS FOR MANUFACTURING THE CEMENT The Indian cement industry is the second largest producer of quality cement. Indian Cement Industry is engaged in the production of several varieties of cement such as-

17 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

Portland Blast Furnace Slag Cement (PBFS)

Ordinary Portland Cement (OPC)

Portland Pozzolana Cement (PPC)

Sulphate Resisting Portland Cement

White Cement

Rapid Hardening Portland Cement

Oil Well Cement

The basic raw components of manufacturing the various type of cement are as follows-

18 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

Limestone

Silica

Raw Components

Iron Oxide

Aluminum Oxide

MAJOR PLAYERS IN INDIAN CEMENT INDUSTRY There are a number of players prevailing in cement industry in India. However , there are around 17 big names that account for more than 70% of total cement production in India. 19 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works The total installed capacity is distributed over around 129 plants, owned by 54 major companies across the nation.

List of Cement Companies in India.


A ACC Limited Ambuja Cements Limited Andhra Cements Ltd B Barak Valley Cements Ltd Bheema Cements Ltd Binani Cement Ltd Birla Corporation Limited Burnpur Cement Ltd C Chettinad Cement Corporation Limited D Dalmia Cement (Bharat) Limited Deccan Cements Ltd. E Everest Industries Ltd G Grasim Industries Limited Gujarat Sidhee Cement Ltd H Heidelberg Cement India Ltd Hyderabad Industries Ltd I Indian Hume Pipe Company Ltd

20 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works J J. K. Cement Limited JK Lakshmi Cement Ltd K Kalyanpur Cements Ltd. Katwa Cements Ltd Kesoram Industries Ltd. M Madras Cements Limited Mangalam Cement Ltd. N NCL Industries Ltd. Nirman Cements Ltd O OCL India Ltd. P Panyam Cements & Mineral Inds. Ltd Prism Cement Ltd R Rose Zinc Ltd S Sagar Cements Ltd. Sainik Finance & Inds. Ltd. Sanghi Industries Ltd Saurashtra Cement Ltd. Shiva Cement Ltd Shree Digvijay Cement Company Ltd. Somani Cement Company Ltd Sri Vasavi Inds. Ltd Srichakra Cements Ltd Stresscrete India Ltd 21 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works T The India Cements Limited U Udaipur Cement Works Ltd UltraTech Cement Limited V Vinay Cements Ltd Visaka Industries Ltd

The following table shows the position of the major cement industries in Indian cement industry: Overall Rankings and Scores of Cement Firms Rank Firm Score Ambuja Cements Ltd. 1 68.77 Grasim Industries 2 61.99 ACC LTD. 3 60.72 Ultratech Cement Ltd. 4 60.24 India Cements Ltd. 5 54.73 Prism Cement Ltd. 6 53.41 Madras Cements Ltd. 7 52.28 Birla Corporation Ltd. 8 48.14 Industry Average 45.45 Dalmia Cement ( Bharat) 9 45.15 Ltd. Shree Cement Ltd. 10 43.75 JK Cement Ltd. 11 37.17 Chettinad Cement 12 34.54 Corporation Ltd. Century Textiles & Inds. 13 31.77 Ltd. Sanghi Industries Ltd. 14 31.68 J K Lakshmi Cement Ltd. 15 31.32 Binani Cement Ltd 16 31.08 O C L India Ltd. 17 25.91

22 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

CHAPTER COMPANY

III

PROFILE

23 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

MADUKKARAI CEMENT WORKS COMPANY PROFILE


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, 20 sales offices, and several zonal offices. It has a workforce of about 10,000 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 endeavors 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 coprocessing.

24 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works 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.

HISTORY
ACC CEMENT has 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 25 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works 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'.

OBJECTIVES OF COMPANY 1. To ensure a steady growth of business by strengthening the companys position in its core business of cement. 2. To maintain the high quality of the companys products and services and ensure its supplying at fair prices. 3. To ensure welfare of companys employees. 4. To be trusted and ethical organization. 5. To strive continuously and maintain the leadership of the cement industry through selective acquisition, modernization expansion and establishments of a wide and efficient marketing network. 6. To ensure environmental protection and well being of the community.

POLICY OF COMPANY ACC has an effective Quality Policy System Manufacture Quality Products. Customer satisfaction. Continual improvement in quality.

VISION STATEMENT OF COMPANY ACCs Vision vividly declares the companys commitment to community and sustainable development issues making this an essential part of the five interdependent and intertwined business goals for the company. The essence of this resolve is contained in the fifth goal or diamond which envisages that ACC inspires trust and respect.

26 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works The 5 diamonds of ACCs Vision Statement is as follows ACC is a leading organization. ACC is a customer driven organization. ACC is a great place to work. ACC is the most efficient cement producer ACC inspires trust and respect This statement is synonymous with balancing the Triple Bottom Line defined as the achievement of three interdependent and mutually reinforcing goals of Environmental protection Economic development Social development

VISION STATEMENT OF ACC LTD.

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

27 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

VALUES OF ACC LTD. STRENTH Building strong and lasting relationships. Conducting everyday operations internally in true team spirit. Acting responsibly with integrity and demonstrating strength of character. PERFORMANCE Delivering on our promises to each other and to our stakeholders. Always ensuring excellence. Working together and striving to delight customers with best solutions. PASSION Caring, being dedicated, committed and passionate about everything we do.

ORGANIZATION STRUCTURE ACCs organization structure was revised in 2006. Added thrust was given to sustainable development with the creation of separate cells at the corporate office and plants to coordinate activities relating to waste management, alternate fuels and raw materials, corporate social responsibility and occupational health and safety. All these were placed under the supervision of the Managing Director.

28 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

BOARD OF DIRECTORS

MANAGING DIRECTOR

REGIONAL HEADS

BUSINESS HEAD (East Region)

BUSINESS HEAD (South Region)

BUSINESS HEAD (North Region)

BUSINESS HEAD (West Region)

Production Manger

HR Manger

AFR Manger

Marketing Manger

Finance Manger

Procurement Manger

Stores Manger CSR Coordinator

29 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works BOARD OF DIRECTORS

The list of Board Of Directors of the company are as follows--

BOARD OF DIRECTORS
Mr. N. S. Sekhsaria Chairman Mr. Paul Hugentobler
Deputy Chairman

Mr. Kuldip Kaura


Chief Executive officer and Managing Director Mr. S M Palia Mr. Naresh Chandra Mr. Markus Akermann Mr. M L Narula Mr. R A Shah Mr. Shailesh Haribhakti Mr. Aldan Lynam Mr. Sushil Kumar Roongta Mr. Ashwin Danl

30 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works PRODUCTS PROFILE The company manufactures Portland cement for general construction while its blended products, acknowledged for outstanding durability, include fly ash and slag-based cements. Both these varieties of cement offer high quality and special properties that defy the harshest environments. In addition to conserving valuable mineral resources and reducing waste, these blended cements also help cut down the emission of carbon dioxide and assist in checking global warming. ACC is sensitive to consumer needs. When the company realized that large construction activities would require large amounts of cement it set up the countrys first facility for distribution of cement in bulk, as far back as 1956. To meet the needs of other consumers it introduced cement in small 25 kilogram bags as also jumbo bags of 1MT. Today, of course, mechanized mega construction projects receive cement from ACC delivered in bulk tankers a welcome change from the conventional cement bag. ACC was also the first company in India to introduce Ready Mix Concrete on a commercial basis. A transit concrete mixer is now a familiar sight in Indias major cities. Ready Mix Concrete and Bulk Cement have enabled the construction industry to introduce sophisticated practices for the speedy completion of large infrastructure projects.

ACC is mainly engaged in the production of the following products

ORDINARY PORTLAND CEMENT

BLENDED CEMENT

PORTLAND SLAG CEMENT

31 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works ORDINARY PORTLAND CEMENT 1. 43 Grade Cement (OPC 43 Grade) ACC cement is the most commonly used cement in all constructions including plain and reinforced cement concrete brick and stone Masonry, floors and plastering. It is also used in the finishing of all types of buildings, bridges, culverts, roads, water retaining structures etc. 2. 53 Grade Cement This is an Ordinary Portland cement which surpasses the requirement of IS:12269-53 Grade. It is produced from high quality clinker ground with high purity gypsum. Its 53 Grade OPC provides high strength and durability to structure and balanced phase composition. It is available in specially designed 50 kg bags. It surpasses BIS specifications (IS 81121989 for 43 Grade OPC) on compressive strength levels.

BLENDED CEMENT 1. Fly-ash based Portland Pozzolana Cement This is special blended cement, produced by inter-grinding higher strength ordinary Portland cement clinker with high quality processed fly-ash based on norms set by the companys R&D division. This unique, value-added product has hydraulic binding properties not found in ordinary cements. It is available in specially designed 50-kg bags. ACC Fly-ash based PPC is made by intergrading high strength clinker with specially processed fly ash. This imparts a greater degree of fineness to ACC Flyash based PPC Cement, improved workability properties while mixing, and makes concrete more corrosion resistant and impermeable. All of this makes for better long-term strength and improved corrosion resistance and therefore, greater life for your constructions. ACC Fly-ash based PPC is an eco-friendly cement. In concrete made from ordinary cements, moisture reacts with calcium bicarbonate, which leaches out of the concrete, leaving pores that reduce its strength. ACC Fly-ash based PPC has ingredients which react with calcium hydroxide to form CSH get, to provide additional strength, which actually makes the concrete grow in strength over the years. It also produces less heat of hydration and offers greater resistance to the attack of aggressive water than normal Portland cement. ACC Fly-ash based PPC easily replaced OPC and provides additional advantages for practically all types of construction application-commercial, residential, 32 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works bungalows, complexes, foundation, columns, beams, slabs and RCC jobs. It is especially recommended for mass concreting work, and where soil conditions and the prevailing environment take heavy toll of constructions made with ordinary cements. Due to its inherent characteristics, ACC Fly-ash based PPC makes very corrosion resistant concrete that is superior to concrete made with OPC. It is more impermeable to Oxygen, CO2, chlorides etc. Leaching of alkalis is reduced and the alkaline environment around steel is maintained. ACC Cement is marketed in specially designed 50 kg. bags. PORTLAND SLAG CEMENT This is slag-based blended cement that imparts strength and durability to all structures. It is manufactured by blending and inter-grinding OPC clinker and granulated slag in suitable proportions as per our norms of consistent quality. PSC has many superior performance characteristics which give it certain extra advantages when compared to ordinary Portland cement. It is available in specially designed 50-kg bags.

ACC'S ECO-FRIENDLY CEMENT IN ONE YEAR Cement major ACC is likely to launch in the next one year environment-friendly cement that will emit less carbon dioxide (CO2) while being produced. The new environment-friendly cement will emit 400-450 kg of CO2 per tonne at the time of burning limestone during its production, while the same is about 900 kg in the case of conventional cement. According to sources in the know of the development, ACCs R&D division at Thane has been working on this for the last one year and is now carrying out pilot production. The development is almost complete and ACC is now doing the pilot testing. It will take about another one year to commercially launch the product as pricing, branding and some other issues have not been decided yet, a source said. The new product will cost more than the ordinary cement, sources said. The company is yet to decide whether the final product will be marketed by the group firm or Ambuja Cement which shares the R&D centre at Thane. As per the plan, the company will introduce the product in a few areas initially. Later, it will expand distribution of the new cement across India based on customer feedback. When contated, a company spokesperson declined to comment on the development. 33 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works The new product is being developed by using lesser limestone. The quality remains same as some additives are used during the production process, besides improvement in grinding techniques, another source said. Cement production has always remained a concern for global warming due to the high energy requirements and the release of significant amounts of CO2. Besides, ACC has embarked upon an ambitious project for substituting five per cent of its annual coal requirement of about five million tonnes over the next three years with waste generated by cities and industries. It has already replaced two per cent of its coal requirement with all types of wastes. The company, which saved Rs 47 crore last year on fossil fuels, aims to save Rs 60 crore in 2011 by burning waste, primarily plastics, at its plants. Global cement major Holcim-controlled ACC has an installed production capacity of 30 million tonnes per annum in India. Apart from waste management, the company has also undertaken a drive to plant jatropha and castor trees in and around its mines, plants, townships and waste land. As of 2010, it had planted two million saplings out of its target of five million trees.\

ACC: VOLUME, VALUATION BOOST


VOLUME BOOST ACC has marked excellent 14 per cent growth in volumes to 17.76 million tonnes (mt) during January-September 2011 translating into an annualised capacity utilisation of 77 per cent. On a comparable basis, during April-September 2011, ACC volumes at 11.56 mt have marked 15.1 per cent growth annually, compared to 0.2 per cent by Ultratech and one per cent by Ambuja Cement, a group firm, partly aided by a low base. ACC, facing capacity constraints during last year, had been a laggard in terms of volume growth. It had posted negative growth for first three quarters of 2010, as its brownfield expansions in Orissa (1.2 mt) and Karnataka (3 mt) got delayed and took time to stabilise. Further, post completion of the 3-mt-per-annum clinkering plant in Chanda (Maharashtra), along with the 25-Mw captive power capacity starting contributions, the cement capacity increased to 30.6 mt per annum by the end of 2010. Its captive power capacity increased to 346 Mw. These have led to the growth in volumes seen so far during 2011, and given the availability capacity volumes should continue to rise at a healthy pace.

34 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works BETTER REALISATIONS Along with volumes boost, realisations have also improved. The increase in cement price (ranging from Rs 25-50 for each 50-kg bag) undertaken by players in southern states since September 2010 have sustained. Prior to September 2010, the prices in the southern states had been much below the national average of around Rs 225 a bag (of 50 kg). These have helped ACC post better realisation looking at its good presence in south. Though overall cement capacity additions in the country have outpaced the demand, by maintaining production discipline cement players have been able to sustain higher prices in rest of India too. ACC saw realisations of Rs 4,052 a tonne (Rs 202.60 per bag) during the April-June quarter, 5.7 per cent higher over the same period last year. Further, during the sluggish September quarter which was marred by monsoon, realisations should come at Rs 3,772 a tonne or Rs 188.60 per bag (up 11.3 per cent year on year), according to Motilal Oswal Research estimates. Notably, as the monsoon season ended, the last 15-20 days have also seen cement prices going up by Rs 50 per bag in northern states, to an extent due to an increase in costs. Analysts feel while demand in October may take a slump due to the festive season, the coming months should see better demand. They feel though a major boost to demand will only come after large infrastructure projects take off, cement players should be able to keep prices at reasonable levels by maintaining volume discipline. COAL RISK Coking coal remains the basic raw material for cement production. While cement manufacturers had been dealing with firm coal prices, a new problem has cropped up for them. ACC procures about 20 per cent of its requirements from e-auctions from Coal India. However, for October 2011, Coal India has decided to offer e-auction quota to power companies facing acute shortage of coal. While cement majors generally keep 3040 days of coal inventory and for now Coal India has decided for diverting supplies during October only, if the problem persist cement producers will have to shift to highcost imported coal. According to Emkay Global estimates, if the problem persists for the October-December period, CY2011 EPS of ACC can be negatively impacted by 1.2 per cent. Also, there is likelihood of Coal India going for price hikes considering the wage revisions at the company, which could further impact ACCs margins. Secretarial & Share departments receive ISO 9001 2008 Certification The Secretarial Compliance division & Share Department have received ISO 9001 2008 Certification from Det Norske Veritas (DNV) A S Certification Services. The ISO 9001 -2008 Certificate certifies the robustness of quality management processes. ACC is one of the very few organizations whose Secretarial Compliance and Share Department processes have received ISO certification.

35 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

SUBSIDIARIES AND ASSOCIATES

1. ACC Concrete Limited ACC set up India's first commercial Ready Mix Concrete (RMX) plant in Mumbai in 1994 which together with the promotion of bulk cement has played a key role in redefining the pace and quality of construction activity in our large cities and mega infrastructure projects. The Ready Mix Concrete business of ACC was reorganized as a separate wholly owned subsidiary which was incorporated as ACC Concrete Limited with headquarters in Mumbai. Today this company is one of the largest manufacturers of Ready Mix Concrete in India with a countrywide network of over 30 plants, with modern equipment and a large fleet of transit mixers. 2. ACC Mineral Resources Limited ACC's wholly owned subsidiary, The Cement Marketing Company of India Limited, was renamed as ACC Mineral Resources Limited (AMRL) in May 2009 with an objective of securing valuable mineral resources, such as coal for captive use. ACC Mineral Resources Limited has already entered into Joint Venture arrangements for prospecting, exploration and mining coal from the coal blocks in Madhya Pradesh and West Bengal. The company is also exploring other opportunities for securing additional coal and gypsum resources in India and abroad 3. Bulk Cement Corporation (India) Limited 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 cement in bulk from ACC plants at Wadi. The plant has its own special purpose railway wagons and rakes and its own railway siding. The first of its kind in India, BCCI is equipped with all the facilities required by increasingly sophisticated construction sites in a bustling metropolis, including a laboratory, a fleet of specialized 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 bags of varying sizes from 1 tone down to 25 kg bags. BCCI is situated strategically on the outskirts of Mumbai, just off the new Mumbai-Pune Expressway. It is a landmark structure spread over 30 acres of land.

36 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works 4. Lucky Minmat ACC acquired 100 per cent of the equity of Lucky Minmat Private Limited. This company holds limestone mines in the Sikar district of Rajasthan, and helps supplement limestone supply to the Lakheri Plant. 5. National Limestone Company Private Limited National Limestone Company Private Limited is a wholly owned subsidiary. The company is engaged in the business of mining and sale of limestone. It holds mining leases for limestone in the state of Rajasthan. 6. Encore Cements & Additives Private Limited ACC acquired 100 percent of the financial equity of this company which is a slag grinding plant in Vishakhapatnam in coastal Andhra Pradesh. This company became a wholly-owned subsidiary of ACC in January 2010.

CEMENT PLANTS OF ACC LIMITED Here is a list of our cement plants, showing Plant-wise capacity----

PLANTS Bargarh Chaibasa Chanda Damodhar Gagal Jamul Kymore Kudithini Lakheri Madukkarai Sindri Wadi New Wadi Plant Thondebhavi Tikaria

PLANTS CAPACITY (MTPA) 1.20 0.87 1.00 0.53 4.40 1.58 2.20 1.10 1.50 1.18 0.91 2.59 3.20 1.60 2.31

37 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

BUSINESS STRATERGY OF ACC

2009

2010

2011

2012

2013

Market Share

Maintain Leadership Position in Industry

Competitiveness

Leadership in Quality, Services and Cost Efficiency

Organization

Accountable, Responsive and Motivated

Corporate Citizenship

Create Safe Place to Work Become employer of choice Reputed Corporate entity Leadership in sustainable development Enhance community living standards Continual improvement in environment performance

Bottom Line

Achieve Internal target for growth in EBITDA over2007

38 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

ACC - MILESTONES
1936 1936 1937 1944 1947 1952 1955 1956 1957 1957 1961 1961 1961 1961 1962 1965 1965 1965 1968 Incorporation of The Associated Cement Companies Limited on August 1, 1936. First Board Meeting of The Associated Cement Companies Limited held at Esplanade House, Mumbai on November 10, 1936. With the transfer of the 10th company to ACC, viz. Dewarkhand Cement Company, the formation of ACC is complete on October 23, 1937. ACCs first community development venture near Bombay Indias first entirely indigenous cement plant established at Chaibasa in Bihar Village Welfare Scheme launched Sindri cement works used the waste product calcium carbonate sludge from fertilizer factory at Sindri. Bulk Cement Depot established at Okhla, Delhi Technical training institute established at Kymore, Madhya Pradesh. Katni Refractories Blast furnace slag from TISCO used at the Chaibasa Unit to manufacture Portland Slag Cement for the first time in India. Manufacture of Accocid Cement, which resists the corrosive action of acids and chemicals. Oilwell Cement manufactured at ACC Shahabad Cement Works in Karnataka for cementation of oilwells upto a depth of 6,000 feet. Manufacture of Hydrophobic (waterproof) cement at ACC Khalari Cement Works in Bihar. Manufacture of Accoproof, a waterproofing additive. ACCs Central Research Station (CRS) established at Thane Manufacture of Portland Pozzolana Cement. Manufacture of Calundum, a High Alumina Binder; Firecrete, Low Density Alumina Castables and High Alumina Refractory Cement. Advent of computers in ACC for data processing and designing management information and control systems.

39 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works 1968 1971 1973 1977 ACC supplied and commissioned one-million-tonne iron ore pelletising plant ordered by TISCO Manufacture of Whytheat Castables A, K, C and Cal-Al-75 Take-over of The Cement Marketing Company of India (CMI) ACC receives ASSOCHAM first national award for the year 1976 instituted for outstanding performance in promoting rural and agricultural development activities. Introduction of the energy efficient precalcinator technology for the first time in India. Full scale commercial production based on MFC technology at Wadi in 1979. ACC wins international contract for operation and management of a new one million tonne cement plant at Yanbu-Ras Biridi in Saudi Arabia. Commissioning of the first 1 MTPA plant in the country at Wadi, Karnataka. ACC achieves a breakthrough in import substitution by developing and supplying a special G type of oil well cement to ONGC. ACC develops a new binder for use at sub-zero temperatures, which is successfully used in the Indian expedition to Antarctica. Incorporation of Bulk Cement Corporation of India, a joint venture with the Government of India. ACC starts the commercial manufacture of Ready Mixed Concrete at Mumbai. ACC selected as Most Respected Company in India by Business India. Commissioning of the 0.6 MTPA cement grinding unit at Tikaria, Uttar Pradesh. Commissioning of captive power plants at the Jamul and Kymore plants in Madhya Pradesh. Tata group sells 7.2% of its stake in ACC to Ambuja Cement Holdings Ltd, a subsidiary of Gujarat Ambuja Cements Ltd. (GACL) Tata Group sells their remaining stake in ACC to the GACL group, who with 14.45% now emerge as the single largest shareholder of ACC. Commissioning of the new plant of 2.6 MTPA capacity at Wadi, Karnataka plant, the largest in the country, and among the largest sized kilns in the world.

1978

1979 1982 1984 1987 1992 1993 1995 1998 1999 1999 2000 2001

40 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works 2002 2003 2004 2004 ACC wins PHDCCI Good Corporate Citizen Award IDCOL Cement Ltd becomes a subsidiary of ACC IDCOL Cement Limited is renamed as Bargarh Cement Limited (BCL). ACC raises US $ 100 million abroad through Foreign Currency Convertible Bonds (FCCBs) for US$ 60 million and Global Depository Shares (GDSs) for US $ 40 million. Both offerings are listed on the London Stock Exchange. ACC named as a Consumer Superbrand by the Superbrands Council of India, becoming the only cement company to get this status. GreenTech Safety Gold and Silver Awards awarded to Madukkarai Cement Works and Katni Refractory Works by Greentech Foundation for outstanding performance in Safety Management System. ACC receives the CFBP Jamnalal Bajaj Uchit Vyavahar Puraskar Certificate of Merit 2004 from Council For Fair Business Practices. Holcim group of Switzerland enters strategic alliance with Ambuja Group by acquiring a majority stake in Ambuja Cements India Ltd. (ACIL) which at the time held 13.8 % of the total equity shares in ACC. Holcim simultaneously makes an open offer to ACC shareholders, through Holdcem Cement Pvt. Limited and ACIL, to acquire a majority shareholding in ACC. Pursuant to the open offer, ACILs shareholding in ACC increases to 34.69 % of the Equity share capital of ACC. Commissioning of Modernisation and Expansion project at Chaibasa in Jharkhand, replacing old wet process technology with a new 1.2 MTPA clinkering unit, together with a captive power plant of 15 MW. Financial accounting year of the company changed to calendar year JanuaryDecember Subsidiary companies Damodhar Cement & Slag Limited, Bargarh Cement Limited and Tarmac (India) Limited merged with ACC ACC announces new Workplace policy for HIV/AIDS Change of name to ACC Limited with effect from September 1, 2006 from The Associated Cement Companies Limited. ACC receives Good Corporate Citizen Award 2005-06 from Bombay Chamber of Commerce and Industry New corporate brand identity and logo adopted from October 15, 2006 ACC establishes Anti Retroviral Treatment Centre for HIV/AIDS patients at

2004 2004

2005 2005

2005

2005 2006 2006 2006 2006 2006 2006

41 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Wadi in Karnataka the first ever such project by a private sector company in India. 2007 2007 2008 2008 2008 2008 2008 2009 2009 2009 2010 2010 ACC partners with Christian Medical College for treatment of HIV/AIDS in Tamil Nadu Sumant Moolgaokar Technical Institute completes 50 years and reopens with new curriculum Ready mixed concrete business hived off to a new subsidiary called ACC Concrete Limited. ACC Cement Technology Institute formally inaugurated at Jamul on July 7. First Sustainable Development Report released on June 5. ACC wins CNBC-TV18 India Business Leader Award in the category India Corporate Citizen of the year 2008 Project Orchid launched to transform our Corporate Office, Cement House into a green building. ACC received the Jamanalal Bajaj "Uchit Vyavahar Puraskar" of Council for Fair Business Practices ACC is allotted coal blocks in Madhya Pradesh and West Bengal. ACC's new Grinding plant of capacity 1.60 million tonnes inaugurated at Thondebhavi in Karnataka. Kudithini Cement Grinding Plant inaugurated in Karnataka on January 4, 2010 with a capacity of 1.1 MTPA of Portland Slag Cement. ACC acquires 100 percent of the financial equity of Encore Cements & Additives Private Limited which is a slag grinding plant in Vishakhapatnam in coastal Andhra Pradesh. This company became a wholly-owned subsidiary of ACC in January 2010. ACC enters its platinum jubilee year - the first company in the cement industry to achieve this status ACC receives FICCI Award for Outstanding Corporate Vision Triple Impact Business Performance Social & Environmental Action & Globalisation for 2009-10 - a unique award received for the first time World's largest kiln installed at ACC Cement Plant, Wadi, Karnataka with a capacity of 12,500 tonnes per day creating new landmarks for cement industry Central Control Room Building at ACC Chanda Plant, Maharashtra set up

2010 2010

2011

2011

42 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works as a Green building, the first of its kind in an industrial environment

ACC AWARDS
ACC was the first recipient of ASSOCHAMs first ever National Award for outstanding performance in promoting rural and agricultural development activities in 1976. Decades later, PHD Chamber of Commerce and Industry selected ACC as winner of its Good Corporate Citizen Award for the year 2002. Over the years, there have been many awards and felicitations for achievements in Rural and community development, Safety, Health, Tree plantation, A forestation, Clean mining, Environment awareness and protection. Awards & Accolades Outstanding Corporate Vision, Triple Impact - Business Performance Social & Environmental Action and Globalization for 2009-10 from Federation of Indian Chambers of Commerce and Industry Asia Pacific Entrepreneurship Award in two categories, Green Leadership and Community Engagement by Enterprise Asia. IMC Ramakrishna Bajaj National Quality Award Gagal wins Commendation Certificate and New Wadi plant wins Special Award for Performance Excellence in the Manufacturing Sector, 2007. National Award for outstanding performance in promoting rural and agricultural development by ASSOCHAM Sword of Honour by British Safety Council, United Kingdom for excellence in safety performance. Indira Priyadarshini Vrikshamitra Award by The Ministry of Environment and Forests for extraordinary work carried out in the area of afforestation. FICCI Award for innovative measures for control of pollution, waste management & conservation of mineral resources in mines and plant. Subh Kuran Sarawagi Environment Award by The Federation of Indian Mineral Industries for environment protection measures. Drona Trophy by Indian Bureau of Mines for extra ordinary efforts in Protection of Environment and mineral conservation in the large mechanized mines sector. Indo German Greentech Environment Excellence Award.

43 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Golden Peacock Environment Management Special Award for outstanding efforts in Environment Management in the large manufacturing sector. Indira Gandhi Memorial National Award for excellent performance in prevention of pollution and ecological development. Excellent in Management of Health, Safety and Environment Certificate of Merit by Indian Chemical Manufactures Association. Vishwakarma Rashtriya Puraskar trophy for outstanding performance in safety and mine working. Good Corporate Citizen Award by PHD Chamber of Commerce and Industry. Jamnalal Bajaj Uchit Vyavahar Puraskar Certificate of Merit by Council for Fair Business Practices. Greeentech Safety Gold and Silver Awards for outstanding performance in Safety Management Systems by Greentech Foundation. FIMI National Award for valuable contribution in Mining activities from the Federation of Indian Mineral Industry under the Ministry of Coal. Rajya Sthariya Paryavarn Puraskar for outstanding work in Environmental Protection and Environment Performance by the Madhya Pradesh Pollution Control Board. National Award for Fly Ash Utilization by Ministry of Power, Ministry of Environment & Forests and Dept. of Science & Technology, Govt. of India for manufacturing of Portland Pozzolane Cement. Good corporate citizen Award by Bombay Chamber of Commerce and Industry for working towards an environmentally sustainable industry while pursuing the objective of creation of a better society. National Award for Excellence in Water Management by the confederation of Indian Industries. Golden Peacock Eco-Innovation Award 2008 won by AFR Business for efficient disposal of industrial wastes. Best in Class Manufacturing Awards 2011-12 - Manufacturing Leadership in Cement by Indira College of Engineering & Management.

44 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

IMC Ramkrishna Bajaj National Quality (RBNQ) Awards - Certificate of Merit and Performance Excellence Trophy to ACC Gagal and Gagal DAV Sr Sec.Public School. Confederation of Indian Industry (CII) Best Environmental Practices award to ACC Damodhar. Confederation of Indian Industry (CII) Energy award to ACC Wadi. Safety Innovation Award 2011 from The Institution of Engineers' (India) to ACC Kymore and Tikaria. India Manufacturing Excellence Awards 2011 - Gold Certificates of Merit to ACC Lakheri, Gagal, Wadi and Silver to Jamul by The Economic Times and Frost & Sullivan. Association of Business Communicators of India (ABCI) awards for Accelerate (ACC intranet portal), Annual Report, Parivar and Screensavers. Secretarial & Share processes receive ISO 9001 2008 Certification ACC wins 4th Global Initiative for Restructuring Environment & Management (GIREM) Award for Company of the Year 2011 Greentech CSR Platinum award 2011 in cement sector by Greentech Foundation to ACC Damodhar Greentech Environment Award 2011 by Greentech Foundation to Alternative Fuels & Raw Materials; Gold Category in cement sector to ACC Lakheri Golden Peacock Award for Eco-Innovation by World Environment Foundation ACC wins Dun & Bradstreet Rolta Corporate Award 2010 - leader in Cement category. 10th Annual Greentech Safety Award 2010 by Greentech Foundation to ACC Chaibasa, Chanda, Gagal, Lakheri, Madukkarai and Tikaria. Tikaria won the award in platinum category while Lakheri bagged Gold and Chaibasa, Madukkarai, Jamul, Sindri and Wadi won in Silver category.

45 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

CHAPTER

IV

DEPARTMENTAL ANALYSIS

46 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

DEPARTMENTAL ANALYSIS
The brand ACC enjoys a high level of equity in the Indian market. ACCs brand equity was found to be the strongest among its key competitors. ACC is a brand with meaning not just to customers but to other stakeholders such as shareholders, employees and vendors. The true index of ACCs greatness is not only its turnover, not only its quantum of profits but its well defined Organization Structure- backed by a systematic and well organized departments.

ACC consists of a set of various departments backed by a loyal and dedicated workforce and other resources which lays down the foundation of building a strong, passionate and confident organization i.e. ACC.

ACC consists of a number of departments. From the study conducted in ACC Madukkarai Cement Works we can broadly classify the departmental structure of ACC into the following --

47 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

DEPARTMENTAL ANALYSIS

PRODUCTION DEPTT. QUALITY CONTROL DEPTT.

FINANCE DEPTT.

Time Keeping Deptt.

HRM DEPTT.
INTERNAL AUDIT DEPARTMENT

Safety Deptt.

AFR DEPTT. PROCUREMENT DEPTT. GENERAL STORES DEPTT.

Security Deptt.

ENVIRONMENT DEPTT. CSR DEPTT. MAINTAINANCE DEPTT. SYSTEM DEPTT. MARKETING DEPTT.

48 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

PRODUCTION DEPARTMENT
Production Department is considered as the heart of an organization. It is an area of work where the core products of an organization take its physical form. ACC have a well structured as systematic Production Department which is engaged in the process of cement and concrete production. The Production Department of ACC concentrate on 4S system of management, they are as follows: Seiri Separate the necessary from unnecessary item

Seiton Arrange orderly and label

Seiso Clean the work place and keep clean

Seiketsu Constant practice of Seiri, Seiton & Seiso

OBJECTIVE OF PRODUCTION DEPARTMENT The main objective of Production Department is To produce a quality oriented cement and concrete through a well structured production procedure.

49 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

PLANT LAYOUT

Map key 00. Limestone Quarry and Crushing plant 01. Limestone Stockpile 02. Additives Hopper 03. Additives Storage 04. Raw Mill Building 50 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works 05. Blending and Storage Silo 06. Pre Heater 07. Gas Conditioning Tower and ESP 08. Kiln 09. Cooler 10. Deep Bucket Conveyor 11. - 12. Clinker/Gypsum storage 13. Coal Mill Building 14. Cement Mill and Bag House 15. Cement Storage Silo 16. Packing and Dispatch 17. Central Control Room

Plant lay out simply refers to the arrangements of the machines, equipments and other physical facilities within the factory premises. ACC Plants usually follow Process Layout i.e. similar machines are placed in one place (work area) according to the operation or functions they perform.

51 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works MINING DEPARTMENT

CRUSHER DEPARTMENT

BALL-MILL DEPARTMENT (HIGH -GRADE SLURRY)

RAW-MILL DEPARTMENT (LOW- GRADE SLURRY)

FLOTATION DEPARTMENT

MIXER BASIN 1 & 2

MIXER BASIN 3 & 4

FILTERATION DEPARTMENT

KILN DEPARTMENT

CEMENT-MILL DEPARTMENT

PACKING HOUSE DEPARTMENT

DESPATCH SECTION 52 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

ORGANIZATION CHART OF PRODUCTION DEPARTMENT The Production Department of ACC is provided with adequate, experienced and competent personnel for carrying out the activities of production department. The organization chart of the department is shown below:

GENERAL MANAGER

PRODUCTION MANAGER

ASST. MANAGER (PLANT)

ASST. MANAGER (QC)

WORKS SUPERIDENT- I

WORKS SUPERIDENT-III

ENGINEER (QC)--I

WORKS SUPERIDENT-II

ENGINEER (QC)--II

53 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

PRODUCTION TURNOVER ACC is a reputed and strong manufacturer of cement within the country. ACC strive to retain their position as Indias foremost manufacturer of cement and concrete with a countrywide bouquet of 16 modern cement factories that have a capacity of 26 million tones per annum to be increased to 30 million tones by the end of 2010. Hence overall ACCs annual production capacity is 26 million tones per annum. The annual production capacity of ACC Madukkarai plant is 7.5 million tones per annum with a semi-wet technology of manufacturing. Earlier at the starting stage its production capacity was only 0.6 million tones per annum.

54 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

DEPARTMENTAL FUNCTION The functioning of Production Department of Madukkari Plant of ACC is somewhat different from other plants of ACC. This is basically because the basic raw material obtained from the mines of Madukkari plant is of low quality. Hence in order to increase its quality up to the mark, Madukkarai plant practices the semi wet process along with wet and dry process. In other plants of ACC they use to follow wet process and dry process only but in Madukkarai plant of ACC they undergo through wet process semi wet process dry process. The production department of Madukkarai plant is basically divided into various subdepartments. These sub-departments are known as Zones. Each zone of production department have a zone name, owner (head of the sub-department). The following are the various zones of production department----

ZONAL -- STRUCURE
ZONE ZONEPEARL ZONERUBY ZONESAPPHIRE AREA MINING DEPARTMENT CRUSHER DEPARTMENT ADDITIVE STORAGE HOPPER BALL-MILL DEPARTMENT FLOTATION DEPARTMENT RAW-MILL DEPARTMENT MIXER-BASIN NO. 1 & 2 MIXER BASIN NO. 3 & 4 CENTRAL CONTROL ROOM FILTERATION DEPARTMENT KILN DEPARTMENT CLINKER/GYPSUM STORAGE COAL MILL BUILDING CEMENT- MILL DEPARTMENT CEMENT STORAGE SILO PACKING HOUSE DEPARTMENT DESPATCH SECTION

ZONEDIAMOND

ZONEEMERALD

ZONECORAL ZONEGARNET

55 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works The following are the main functions of each zone of production department: Zone-Pearl 1. Mining Department The major raw-material for cement production is limestone. The limestone most suitable for cement production must have some ingredients in specified quantities i.e. calcium carbonate, silica, alumina, iron etc. Typically, cement plants locations are based upon the availability of good quality limestone in the vicinity. But in case of Madukkarai plant, the limestone available in mines are not upto mark. ACC Madukkarai plant basically has two mines from where lime stones are obtained i.e. Madukkarai quarry which is located at a distance of 4 kms. and at Walayar quarry located at a distance of 22 kms from the plant. The limestones obtained from these mines are usually in the form huge rocks. Hence, it undergo quarrying process. The quarrying operations are done by the cement producer using the open cast mining process. Quarrying is done through drilling and subsequently, using heavy earthmoving equipment such as bulldozers, pay loaders and dumpers. The quarried raw material is then transported to the cement plant by vehicles like wagons and trucks. The limestone (CaO) obtained from these quarries are usually of 74-75% quality but actual required quality is around 83-95%. Zone - Ruby 2. Crusher Department Limestone from mines is brought to the crusher department. The quarried limestone is normally in the form of big boulders, ranging from a few inches to meters in size. These varying sizes of limestone need to be crushed to a size of about 6 to 8 inches in order to be prepared for finish grinding. Crusher Department usually have two sections Primary Crusher(300 tons per hour) and Secondary Crusher(400 tons per hour). Primary crusher The limestone from mines is brought to the plant site by trippers (20 tons capacity) and halpack (40 tons per halpack) and then it is dumped into dumpers. Then through laminated conveyers it is sent to primary crusher. 56 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works The lime stones are crushed to the size of 6-10 inches in Jaw Type primary crusher then through belt conveyers it is transported to the secondary crusher. Secondary Crusher In secondary crusher the primary crushed limestone further reduced to the size of less than 1 inch. Then the secondary crushed limestone is passed to vibrating screen which helps to separate fine material with that of course material. Then the fine material is forwarded to other department for further process and course material is transferred again to secondary crusher for reprocessing. 3. Additive Storage Hooper In order to required composition of raw material, certain additive such as iron ore, bauxite, laterite and fluorspar are added in required quantities. These additives are stored at the plant in separate hopper and are extracted using belt conveyers in conjunction with belt weighing equipment. This ensures that only the required quantities are extracted and are added to the raw material. Zone Sapphire 4. Ball Mill Department Crushed limestone from secondary crusher is fed to Ball Mill. As we know that the quality composition of lime stone required is different from that of actual received composition. So in order to make this limestone fit for production of final product the corrective material i.e. iron ore (Fe2 O3), Alumina (Al2 O3 ), Silica (SiO2 ) is added with limestone and then grounded with water to make high grade slurry. Ball Mill usually has two parts Ball Mill 1 (57 ton per hour) and Ball Mill 2(25 ton per hour). Ball Mill 1 The crushed limestone from secondary crusher is fed to Ball Mill 1 through conveyers. In this mill the limestone is added up with corrective material and they are grounded together with the help of grinding media. Ball Mill 2

57 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Then the above mixture is transferred to Ball Mill 2 where it is grounded with water to form high grade slurry. Then this slurry is pumped to hydrocyclon having 380 ton capacity which is placed at the top of the Ball Mill. Here the high grade slurry get separated into fine slurry and course slurry. Then the fine slurry is pumped to floatation department and course slurry will again settled down to the Ball Mill 1 for reprocessing. 5. Floatation Department(Cell House) Floatation Department deals with semi wet processing in order to make quality oriented materials. In this department the fine slurry from Ball Mill hydrocyclon is pumped to turbo mixer basin. Here the slurry undergoes blending process in order to homogenize these different material efficiently to counter act flectuations in the chemical compositions of the high grade slurry. Then it is transferred to Hydrocyclon (350 ton, 250 tons) situated at the top of the Floatation Department. Here again the slurry undergoes separation process then the fine slurry will be transferred to thickener and course will be transferred to cells. In cells the course slurry will be added up with the reagents (caustic soda, soap stock and rosin) then as a result of processing in cells, the fines are separated from course and then that will be transferred to thickener and the course will be rejected. Heavy course particles mainly silica is removed as rejects. From the Floatation Tank is being used by the other industries and remaining used for reclamation of worked out quarries. The high grade fine slurry after removal of rejects is transported to the thickener from where carbonate rich high grade slurry is removed and then stored in floatation silos. Zone - Diamond 6. Raw Mill Department Crushed limestone from secondary crusher is fed to raw mills through hoppers alongwith required quantity of bauxite, laterite and iron ore and ground with water to make the low grade slurry. Low grade slurry is basic used to provide strength in the final product. This slurry prepared in raw mill is then sent to hydrocyclon (350 tons) situated at top of raw mill, here the fines are separated from course materials. Then the fine low grade slurry is stored in raw mill silos. 7. Mixer Basin 58 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works There are usually 4 Mixer Basins. Required quantity of high grade slurry and low grade slurry is mixed in Mixer Basin No. 1 and 2 where thorough mixing is carried out. The slurry of required composition is then pumped to Mixer Basin No. 3 and 4 from where it is pumped to Rotary Drum Filters. Zone Emerald 8. Filtration Department The corrective slurry in Mixer Basin 3&4 is now quality wise reached but it contains 34% moisture content in it. Filtration Department and Kiln Department carries out the drying process. The corrective slurry is pumped into the slurry header tank in Filtration Deptt and then from there through pumps it is transferred into the Filter Drums (7). These Filter Drums consists of Filter Blocks made up of cloths and these Filter Blocks sucks up 20% of moisture contents from the corrective slurry. After undergoing this filtration process the corrective slurry become kiln feed or raw meal. So output of Filtration Deptt is Raw meal or Kiln feed. Then the raw meal having 13-14% moisture content is fed into the Kiln Deptt from the Filtration Department through a common belt conveyer. 9. Kiln Department A kiln is the heart of any cement plant. It is basically a long cylindrical shaped pipe, and rotate in horizontal position. Its internal surface is lined by re factory bricks. Limestone and addictives are calcined in this. The output of the kiln is called clinker. This department mainly helps to suck up the remaining percentage of moisture content from Kiln feed and also make it in powdered form by supplying heat in excess amount. The main fuel used in Kiln Deptt is coal (alongwith alternative fuel). The raw meal is transferred from Filtration Deptt to the Crusher Dryer. Here a heat up to 1800C to 200oC is transferred by exhaust fan to make Kiln feed into powder form having moisture content in it. Pre-calcination Kiln Feed is fed to the two stream top cyclone from crusher dryer through impact weigh feeder, which partly enters into straight line calciner (SLC). Hot air is supplied to SLC from grate Cooler. In SLC, Kiln feed undergoes calcinations and later fed to bottom cyclone and then to rotary kiln. 59 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Pre-processing in Rotary Kiln When Kiln feed is transferred to Rotary Kiln, then it has a temperature of 900oC already (thus it helps to save coal usage). In Rotary kiln at 1400 oC, Calcium carbonate in presence of fluxes undergoes sintering and clinker is formed. Clinker is discharged to grate cooler for cooling. Hot air from cooler is used as secondary air to kiln, tertiary air to SLC and Coal Mill for drying. Then the clinker formed is stored in clinker silos. Central Control Room It is the nerve centre of the cement plant since all equipments of filtration, kiln section is controlled from this place. It is the place from where all the process parameters are controlled. 10. Clinker/Gypsum Storage The output of the kiln is stored before it is fed to the cement mill for conversion to cement. This storage is called clinker storage, if it is used for clinker storage purpose. If the storage space is used for Gypsum storage, it is called gypsum storage. The storage may be of silo type or covered stacker reclaimer type or simply a gantry type. Silo type clinker storage has been advantage that there is no dust pollution and spillage of clinker. Same advantage can be achieved through stacker reclaimer type as well. However, there is a little bit of dust generated. Gantry type is not used in modern cement plants because of its environmental unfriendly nature. 11. Coal Mill Building The Coal Mill Building houses the mill for grinding lumpy coals. This fine ground coal is used for burning in the kiln. The mills used for call grinding and drying are either trumbling or roller mills. Zone - Coral 12. Cement Mill The basic raw material of a cement factory is clinker which is manufactured in plant of ACC in the above steps. Cement Mill is that part of plant which carries out the main function of a cement factory i.e. production of final product cement and concrete. The clinker produced in kiln is stored in clinker silos. Then through crane yard 60 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works the clinker is transported and dropped into hopper of cement mill and gypsum is also added in it in appropriate quantity. Cement Mill has two sections i.e. Cement Mill 1 and Cement Mill 2. The clinker and gypsum comes in Mill 1 from hopper then in order to mix it properly it is crushed in Mill 1 using grinding media (magnized steel ball material). Then it comes in Mill 2 where fine crushing is done i.e. finished grinding process. Then after this final product is formed by adding appropriate composition of each material (composition changes on basis of product type). The following are the products types and their composition of ACCs Madukkarai plant: Clinker + Gypsum + Slag = Portland Slag Cement (PSC) Clinker + Gypsum = Ordinary Portland Cement (OPC) Clinker + Gypsum + Fly Ash = Portland Poslana Cement Clinker + Gypsum + Flotation Reject = Masanaory Cement(New product)

13. Cement Storage Silo This cement storage silo is used for storing the finished products Cement Zone Garnet 14. Packaging House The cement prepared in cement mill is send to cement silos. There are usually 5 cement silos situated in Packaging House. Among these 5 cement silos, the silo 1 is for storing PSC cements and Silo 2 for OPC, Silo 3 for PPC and Silo 4 for Masanaory cement. Then using bucket elevator cement is put into static/rotary packers 1 & 2 from silos then it is loaded to trucks and thus transports to dispatch department. 15. Central Despatch Section (CDS) The cement bags loaded from packing houses in trucks and wagons will come in CDS for carrying out dispatch procedure.

61 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works The truck drivers present the printed gate-pass slip in dispatch section issued from Time Keeping Deptt. The officer is dispatch section then issue Delivery Notes i.e. JJ Forms to truck drivers usually they issue 4 JJ Forms i.e. 1 for company records, 1 for the receiving party and two for presenting in check post (Chawadi Check Post and Walayar Check Post). Usually from Madukarai plant the final product is transported mainly to warehouses situated in Kerala (Palakkad, Trichur, Aluva & Kozhikode) and to industries and other customers in Tamil Nadu itself. Hence from dispatch section the goods are finally dispatched to the Market from Production Department.

CEMENT PRODUCTION AND DESPATCHES IN APRIL 2012


Month April -2012 Cement Production 2.17 million tonnes Cement Despatches 2.07 million tonnes April-2011 Cement Production 2.06 million tonnes Cement Despatches 2.05 million tonnes

Cumulative
January-April 2012 Cement Production 8.87 million tonnes Cement Despatches 8.79 million tonnes January-April 2011 Cement Production 8.28 million tonnes Cement Despatches 8.27 million tonnes

62 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

QUALITY CONTROL DEPARTMENT(QCD)


Quality Control Department mainly deals with the process of quality control and assurance. ACC is highly concerned about the quality aspects of its products. They are very conscious about there quality and services. Hence, each plant of ACC has there own separate well structured and equipped Quality Control Department. From the study conducted in ACC Madukkarai Cement Works plant, it become very much clear that they focus on continuous improvement strategy i.e. Kaizen approach. The quality department of ACC basically deals with and focus on the quality assurance and control phenomena on a regular or continuous basis. In ACC, the manufacturing process of Ordinary Portland cement and Portland poyyolana cement is a continuous process and thus the quality and process control activities are carried out at all stages of manufacturing process with the objective to achieve zero defect and to ensure that the quality of cement produced surpasses the relevant IS specification requirements with liberal margin and to satisfy the customer fully and continuously.

QUALITY POLICY Manufacture Quality Products Customer satisfaction Continual improvement in quality.

ORGANIZATION CHART The Quality Control Department of ACC is provided with adequate experienced and competent personnel for carrying out the activities of department. The organizational chart of the department is shown below:

63 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

MANAGER PRODUCTION

DY. / JT. MANAGER(QC)

ASST. MANAGER (QC)


JR.ASST.ANALYST MATERIAL HANDLING SUPERVISOR W/BRIDGE TALLY CHECKER

GAUGERS

TESTERS

TESTING SAMPLE BOYS

TESTING SAMPLE BOYS HEOS

YARD SUPERVISOR

Quality Cells/Sections Quality Control Department has four sections/cells. They are: Chemical & Instrumental Analysis Laboratory (Main Lab) Physical Testing Laboratory Site Laboratory and Flotation Laboratory Microscopy AFR PSD

64 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Chemical & Instrumental Analysis Laboratory Chemical Analysis of raw materials, intermediate products and final products are carried out in this laboratory. The main function of this laboratory is to test and assure the chemical composition of raw material and intermediate products and final products. It basically deals with the process of quality assurance regarding composition of chemicals like limestone etc. at various stages of production. Physical Testing Laboratory Physical testing of raw materials, intermediate products and final products are carried out in this laboratory. It basically deals with the process of assuring the strength and quality grade of the cement cakes. It provide assurance regarding the durability of product and also grade analysis of cement cake is performed in this laboratory. Site Laboratory This laboratory functions in all the three shifts. Round the clock quality control and monitoring activities pertaining to flolakeon process are carried out in this laboratory. It mainly deals with the process of monitoring and assuring the quality of kiln fud, clinker cement. It deals with assurance of quality of output of each department in order to judge its composition, strength ad durability etc. Flotation Laboratory Flotation Laboratory also functions in all the three shifts round the clock quality control and monitoring activities pertaining to flotation process. This laboratory mainly deals with the process of monitoring and controlling of quality at the flotation stage. It is the most crucial stage in production in ACC plants because in this stage the low quality raw material is converted into quality oriented raw material (clinker). This laboratory mainly focuses on high grade quality of flotation stage and in this laboratory residence analysis is performed. Quality Control Functions ACC has effectively pledged its reputation as the market leader in the quality of cement by effective quality control functions of quality zone of ACC. The Quality Control functions cover all the processes effecting the product quality. The quality control functions include inspection, sampling and testing of all the incoming raw materials, in process materials and the finished products.

65 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works The test results so obtained from these tests are also known as parameters. Hence the test parameters obtained are used for control of quality of incoming raw materials/in-process materials and also for control of processes. The desirable quality parameters and the minimum acceptance criteria with respect to incoming raw-materials in process materials and finished products are given under: Acceptance criteria/Control of Important parameters at various stages of cement manufacturing process:

Table (a) Incoming Raw-Materials Material Parameter Desired 72 76 % 74 80 % 35 45 % 10 15 % 60 95% 30 45 % 10 15 % 27% 350 400 75 95 % 0.3 0.8 10 15% Range Acceptable 68% minimum 72% minimum 30% minimum 18% maximum 60% minimum 25% minimum 18% maximum 12% maximum 320 minimum 65% minimum 1% maximum 20% maximum

Limestone, Walayar Total Carbonate Limestone, Madukkarai Total Carbonate Bauxite A12 03 Si 02 Iron Ore Fe2 03 Laterite A12 03 Si 02 Fly Ash Combustibles Specific surface(M2/kg.) Gypsum Purity as Ca SO4 , 2H2O Chloride content Coal (imported) Ash content In-coming Raw-materials

The raw-materials used in manufacturing of cement at Madukkarai Cement Works are limestone, Bauxite/Laterite, (i.e. aluminia as silica ) , Iron ore, fly ash and gypsum, coal/lignite is used as a fuel in pyroprocessing. Limestone Received from company own two captive mines through, Walayar Mines & Madukkarai mines. ACC to mine programme, drilling is carried out on deposit as the drill cutting samples are analyzed by Quality Control Department for total carbonate content which gives an advance information to the mines department on quality of limestone before it is blasted. 66 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Quality of limestone is also monitored by analyzing quality of crushed lime sample collected from crusher department. Bauxite/Laterite/Fluoro sludge (Alumina as Silica) It is used in raw mill as a corrective material for required alumina content. Source wise daily average samples are analyzed for acceptability. Iron Ore(Fez03) Mill scale /Iron ore is used in Raw Mill as corrective material for required iron content. Quality Control Department analyze the source wise daily average samples for acceptability. Gypsum It is used in required proportion in cement mills. Quality Control Department analyze the source wise daily average samples of Gypsum for acceptability or Quality assurance.

Fly ash Fly ash is used as a pozzolanic material in manufacture of Portland pozzolana cement in cement mills procured from established sources. Weekly average composite samples are tested for assessing to conformity to IS:3812. Coal/Lignite/Alterative Fuel Presently imported coal from China is being used as a fuel for the pyroproceesing stage. Material Management Division of Corporate Office organizes procurement of imported coal. Coal received by rail or road and the quality is monitored. 67 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Lignite and alternative fuel may also be carried out in accordance to work instruction Nos. and standard test procedures. The quality control department verifies the quality of incoming rawmaterial against the purchase order specifications for deciding its acceptability/rejection. If the material is meeting the requirement, it is allowed to store at the designated places. In case of non-conformance, the material is rejected and stored separately. However, if the nonconformance is found to be marginal and satisfying the min acceptance values as given in about table which will ensure no adverse effect on product quality shall be accepted by imposing suitable penalty clause. Manager Production is final authority for acceptance/rejection of these materials. His decision is final as in no case shall be overridden by anyone.

Sampling & Testing Plan for in-coming Raw-materials. Details of Sample Lime stone Drill cut Parameters TC Frequence of Sampling As and when received from mines Daily receipts source wise Frequence of testing As and when received from mines Daily receipts Purpose of testing To access quality of limestone before blast To access quality and acceptance Quality Assurance To access quality and acceptance Quality Assurance To access quality and acceptance Quality Assurance

Bauxite / Laterite

Moisture A12 03 S1 02 Size Full Chemical Analysis Moisture Fez 03 Full chemical analysis

Daily receipts source wise Daily receipts source wise Daily receipts Source wise Daily receipts source wise Daily receipts Source wise

Iron Ore

Fortnightly composite sample Daily receipts

Gypsum

Moisture Purity Chloride Full chemical analysis

Fortnightly composite sample Daily receipts

Fortnightly composite sample

68 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Fly ash Specific surface, LR, CR, drying shrinkage & full chemical analysis Coal Moisture, proximate analysis including CV Lignite/alternative Moisture ash fuel Packing Cement Bags Cement is packed in HDPE (High Density Polyethyline) / PP (Poly propylene) woven sacks and in paper bags conforming to companies specification formulated by Material Management Division (MMD) of corporate office. For each supply of bags the supplier is submitting the test reports, which preserved by packing house department. Lot of bag sampled for quality check by quality control personnel. Bags are checked for following parameters Length and width of bag Length of valve Weight of bag No. of stitches /decimeter Tensile strength for length, width, top seam and bottom seam. Taper test for branding Daily receipts Source wise Weekly composite sample Suitability for cement quality

Daily receipts

Ratewise sample

To access quality

Daily receipts

Dailywise

To access quality.

In case of paper bags following checks are made: Length and width of bag Length and width of valve Weight of bag

The Quality Control Department forward test report for each lot of cement bags received to Manager Commercial and to Packing House. Manager Commercial decides the acceptance/rejection of lot and communicates to packing house accordingly. Packing house ensures use of bags only from accepted lot. 69 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Acceptance criteria / control of important parameters at various stages of cement manufacturing process:

Table (b) In-process Materials Material Flotation Mill fuels Parameter Desired Residence on 72 Mesh 170 Mesh Total Carbonate Residence on 72 Mesh Residence on 170Mesh Moisture content Total carbonate content Residence on 72 Mesh Residence on 170Mesh Moisture content Total carbonate content Residence on 72 Mesh Residence on 170Mesh Moisture content Ca O Fez 03 A12 03 Moisture content Moisture content Residence on 72 mesh 170 mesh Litre weight Gram/ltr. Free Ca O A12 03 Fez 03 CaO 4.5 6% 25 30% 20 30% 1.5 3.0% 15 22% 32 34% 80 85% 2.5 4.5% 20 28% 30 38% 35 75% 2.8 3.2% 20 27% 32 35% 43 45% 2.5 3.2% 2.7 3.5% 13 17% 3 6% 0.5 - 5.5% 5 26% 108-1180 Range Acceptable 6.5% maximum 35% maximum 35% maximum 4.0% maximum 25% maximum 35% maximum 78% minimum 5.0% maximum 30% maximum 40% maximum 40% minimum 3.5% maximum 32% maximum 36% maximum 43.5% min. 2% minimum 2.5% minimum 18% maximum 8% maximum 5.5% maximum 26% maximum 1000 Min.

Flotation Rejects High Grade Slurry

Low Grade Slurry

Kiln Feed Slurry

Filter cake Fine coal kiln

Clinker

1.5 2.5% 3.5% Max. 5.0 6.0% 4.5% Min. 3.7 - 4.3% 3% Min. 64.0-65.0 63.0%Min.

70 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

In process materials Crusher Department The output of crusher department is limestone. The quality check is carried out by samples collected from product belt conveyor. Raw Mill Department The input of Raw Mill department is crushed limestone, ground in raw mills along with required quantity of corrective materials and water for producing low grade slurry. Quality Control function involved here check quality of low grade slurry, its fineness and moisture content on the samples collected from mill discharge as well as from low grade slurry silos. The corrected slurry preparation takes place in mixer basins No. 1 & 2 by releasing high grade and low grade slurry from silos in required proportions. The corrected slurry is sampled from mixer basins and checked for its quality, fineness and moisture content. If parameters are found beyond set norms further correction is applied which is followed by x-sampling and testing. On clearance from QC Department the Raw Mill Dept. pump out the corrected slurry to mixer basins 3 & 4 for feeding to the kiln. Ball Mill and Flotation Department The input of Ball Mill Dept. is crushed limestone which is grounded in closed circuit ball mills. The quality control function involved in this process is to check the quality and fineness of slurry which is the final output from the ball mill and also the quality of enriched slurry which is fed to thickener as quality of reject generated from the flotation process. For purpose of quality control about 1 1 litre of slurry samples are collected from following points: Ball Mill 350 mm Hydrocyclone fines for control of mill output quality for each mill separately. Thickener feed sample for ascertaining the level of enrichment for each thickener separately.

71 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Thickener under/low sample for ascertaining the quality of high grade slurry from each thickener separately. Reject sample for evaluation of material recovery from each raw separately.

Kiln Department The corrected slurry in Mixer Basin 1 & 2 of raw mill department is pumped to mixer basin no. 3&4 of Kiln Dept. where from it is fed to the slurry filters. The quality control functions involved in this process are given below: Kiln feed Corrected slurry available in mixer basin 3&4 which is ready for feeding to the slurry filters is called kiln feed. It is sampled from point of overflow from constant head tank located at the top of slurry filtration plant. About 1 1 ltr. of sample is collected twice a shift and checked for quality, moisture and fitness. Filter cake The slurry filter drums filter out the water from kiln feed and cake produced is dislodged over the belt conveyors for feeding to the kiln system. About kg. sample of cake is collected from common belt conveyor once in a shift and tested for moisture content. Fine Coal Coal which is used as a fuel is finally ground in a mill for firing to the kiln system. About kg. of fine coal sample is collected from discharge point of screw conveyors for kiln once in a shift and tested for moisture, ash and fineness. Clinker The output from Kiln system is clinker, which come out from cooler discharge point. About 5 kg. sample is drawn every hour and part of sample is sieved for litre weight determination and another part is kept separately for preparation of daily average composite samples. The spot clinker samples are also analyzed once in a shift for quality.

72 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

Cement Grinding The clinker so produced is ground along with gypsum or gypsum and fly ash for manufacture of OPC or PPC, as the case may be, in cement mills. The QC function involves in this process are to check the fineness, setting time and specific chemical parameters on periodic samples collected from each mill separately. About 1 kg. sample is collected mill-wise hourly and checked. Grade Analysis In this stage only grade test is also conducted the final product i.e. cement undergoes physical test as per which a specific grade is fixed for each type of cement. This grade act as a representative symbol of quality and strength of final product in front of customer. Under this quality grade is fixed by undergoing queering process. Queering process is a process of keeping cement cake/concrete produced in mold with water and sand in it in a certain pre-fixed proportion for a period of 24 hours. After period of 24 hours the quality control department will apply certain level of pressure to the molded cement cake if it withstand pressure up to stage of 16 mega Pascal then concrete is good otherwise bad in quality.

This is a case of fixing grade at base of one day test. There are other criteria also: 1 day 3 days 7 days 28 days 16 mega Pascal 22 mega Pascal 30 mega Pascal 53 mega Pascal 33 grade (now removed) 43 grade 43 grade 53 grade

Hence this test conform the quality and strength of final product in a visible form to the ordinary consumers also.

73 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Acceptance criteria/control of important parameters of various stages of cement manufacturing process. Table (c) Finished Products Material Cement Parameter Desired Specific surface(m2/kg) 33 Grade OPC 43 Grade OPC PPC Residence on 45 Mesh 33 Grade OPC 43 Grade OPC PPC SO3 Content for OPC PPC Setting Times OPC (33 & 43) Initial Final Setting Time-PPC Initial Final Composite strength-3 days OPC 33 OPC 43 PPC Composite strength-28 day OPC 33 grade OPC 43 grade PPC 43-48 Mega Pascal 48-53 M. Pascal 45-50 M. Pascal 33 M.Pa Min. 43 M.Pa Min. 33 M.Pa Min. 23-28 Mega Pascal 27-32 Mega Pascal 25-30 Mega Pascal 16 M.Pa. Min. 23 M.Pa. Min. 16 M.Pa. Min. 90 160 150 240 30 Min. 600 Max. 80 140 130 220 290 I 30 310 I 30 340 I 30 18 28% 18 28% 15 20% 1.7 2.7% 1.5 2.5% Range Acceptable 225 Min. 225 Min. 300 Min.

30% Max. 30% Max. 25% Max.

3.0% Max. 3.0% Max.

30 Min. 30 Min. 600 Max.

74 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Finished Products The finished products of ACC are OPC 33 & 43 Grade and PPC (53 Grades). Samples collected hourly from spout of packer machines in packing house department for each type of cement separately. Spot sample analyzed check fineness and specific chemical parameters twice in a shift. Daily and weekly composite samples are prepared from hourly samples which analysis for full chemical and physical tests as specified under scheme of Testing & Inspection (S TI) of BIS relevant for each type of cement. Sampling/Testing Plan for finished products. Manufacturing stage Packing House Dept. Details of sample Cement for each type separately Parameters to Frequency of be tested sampling Specific surface Hourly Co O & SO3 Complete chemical & Physical Tests as per BISs ST Daily/Weekly composite sampling Frequency of Test Twice in a shift Daily/Weekly.

Chemical analysis of clinker and cement is carried out in accordance to procedure defined in IS:4032 and physical test on laboratory bass mill ground cement and cement samples for grinding and packing stages are tested as per IS:4031. Fly ash used for PPC manufacturing is also tested as per IS:1727. Measurement Analysis & Improvement a) Monitoring and Measurement of Quality It is carried out at each stage of manufacturing process. When the above mentioned quality parameters are out of required norms corrective/preventive actions are taken in process to bring it back so that in process materials at each processing stage is meeting required quality norms so as to ensure that the quality of final product. However, if any Non conformance is observed then it means that required set of clinker quality is not present. Hence segregate this from the process and store it separately with proper identification. 75 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

Quality of this clinker will be separately evaluated and accordingly actions will be taken for its usage for next process. Necessary corrective/preventive actions shall be initiated to eliminate recurrence of such instances. b) Control of Non conforming product The products which also not conform to specified requirement is identified and controlled to prevent its unintended use on delivery. The process of cement manufacture is not a batch process but continuous process where control and corrective/preventive actions are taken continuously at each unit operation stage and the monitoring of presence and quality parameters are also continuously undertaken. Where nonconformance is observed at any stage of manufacturing process then it is communicated to concerned personnel for taking corrective/preventive actions and rechecking is done for conformance. If nonconformance is noticed for any parameter after the cement is ground and stand in silos, the silo will be declared non-conforming by Manager Production and the silo will be sealed. Sr. Vice-President (CCO) inform, Manager Production responsible for identifying the reason of non-conformance and notify concerned departments and decide regarding re-categorize the material if conforming to their grades of cement or decide reprocessing or disposal and recommend to Sr. Vice-President for final decision on above. Cement shall be re inspected as per quality requirements before allowed for dispatch in case of reprocessing.

c) Continual Improvement Continually improve the efficiency of quality management system pertains to working of QC Department, it has framed a department objective, target and action plan to achieve the said objectives and targets and the same are given below: Objectives To monitor and control quality of incoming raw material, in process monitor finished products.

76 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works To manufacture quality products all Continual improvement in quality of products.

Action Plans Testing the lime in clinker Trial with use of minerals

Statistical Quality Control The purpose of control chart is to obtain a state of statistical control by locating and eliminating the assignable causes and then to maintain the production in this state so as to ensure the manufacture of uniform product of acceptable quality. As long as plotted point are within the control limits the process is left alone. However, if point follows either below the lower control limit (LCL) or above the upper control unit (UCL) there is a possibility of existence of some assignable oases as an investigation is made and action taken for elimination of sure cases. Quality Control Department prepares the process control chart for Production OPC-43 Grinding PPC Grinding OPC 43 Loading PPC Loading Parameter Specific Surface Specific Surface 3 days compressive strength 3 days compressive strength Frequency Daily Average Daily Average Daily Average Daily Average

d) Corrective and Preventive Actions These actions are integral part of Quality and Process control during cement manufacture. Quality norms and acceptance criteria have been fixed for rawmaterials, in process control and final products. These actions are taken whenever there is a deviation from fixed parameters. These actions are taken by quality control department directly or through the concerned process department are given.

77 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

Table (d) Corrective/Preventive Action Parameter Corrective action Limestone TC low from Quality feedback given to Walayar/Madukkarai mines department shifting of limestone available in stock Raw-materials (Bauxite, Acceptance/rejection as per Loterite, Iron ore) contractual terms. Supplier is suitably advised to improve the quality. Lower JC of High grade Adjustment in magnet slurry dosage, improvement in limestone quality. Deviation of chemical Block the low grade slurry composition of loco grade silo and release only in slurry from set norms. small quantity to the mixer basin 1&2. Kiln feed slurry(mixer Required quantity of high basin 1&2) Deviation of grade or low grade slurry is chemical composition released to mixer basin 1 or from set norms. 2 to get the desired Kiln feed composition. Fine coal variation in ash Make suitable correction in content kiln feed quality. Clinker-Ltr weight on Taken by Kiln dept. lower side Preventive action Taken by concerned Mine Deptt. Suppliers potential is established by issuing trial order in beginning and testing samples from source of supply also. Charges in magnet proportion. Preventive action by mine dept. to improve quality. Make suitable changes in the corrective materials add them to raw-mills. Ensuring required quantity of low grade & high grade slurry is released to mixer basin 1&2.

Checking of coal quality at discharge point. Adjustment in chemical composition of Kiln feed slurry. Clinker -Deviation of Make suitable correction in Maintaining adequate chemical composition kiln feed quality. stock of slurry. from set norms. Cement-Deviate in Adjust the feed setting of Control over moisture in CoO&SO3 values from the clinkers & gypsum supply of gypsum. set norms. Cement-Deviation in Adjust the feed setting of Control over moisture in setting time from the set gypsum supply of gypsum . norms

78 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

FINANCE DEPARTMENT
The brand ACC enjoys a high level of equity in the Indian market. ACCs brand equity was found to be the strongest among its key competitors. This brand enjoys among the highest level of equity in the global cement market. ACC is a brand with meaning not just to customers but to other stakeholders such as shareholders, employees and vendors. The name invokes an assurance of quality and trust. ACC has registered consistent improvement in its financial and overall economic performance. The companys operations are aligned to maximize shareholders value. Profitability has increased appreciably in the last five years. Organic growth is preferred as it is faster and enables overall economies of scale. ACC is currently implementing expansion projects that will raise to cement capacity from 22.40 million tones in December 2007 to 30.40 million tones by the close of 2010. Thus this shows that ACC has well designed Finance Department which deals with economic and income and expenditure related activities of the company. ORGANIZATION STRUCTURE ACC has a well structured Finance Department consisting of competent and experienced personnel resources. The following chart provides an idea of structure of Finance Department FINANACE MANAGER

ASST. FINANACE MANAGER

Sr. Accounts Officer ( Books-Section)

Accounts Officer (Sales Accounts)

Accounts Officer (Cash Section)

Accounts Officer (Establishment) 79 SMBS, Mahatma Gandhi University, Kottayam

Supdt. Accounts Office Asst.

ACC Limited Madukkarai Cement Works

HIGHLIGHTS OF PERFORMANCE/EVENTS Cement despatches were 23.68 million tonnes during the year as compared to 21.17 million tonnes during 2010; Consolidated income for the year under review was Rs.10428 crore, an increase of 21% as compared to Rs.8619 crore in 2010; Consolidated profit before tax increased in 2011 to Rs.1505 crore against Rs.1415 crore in 2010; Consolidated profit after tax was higher in 2011 at Rs.1301 crore against Rs.1078 crore in 2010. FINANCIAL PERFORMANCE OF ACC LTD According to unaudited results of quarter 3, ACC Ltd has registered a net profit of Rs.1675.766 million for the quarter ended September 30, 2011. This is substantially higher than that of the same quarter last year when the company made a net profit of Rs.1000.446 million. Total income of the firm has gone up to Rs. 23060.26 million for the quarter ended September 30, 2011 and has shown a significant rise from RS.17180.862 million which was posted during the same quarter one year back.

80 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

FINANCIAL PERFORMANCE ACC has a well structured Finance Department. It basically deals with the process of managing the financial structure and dealings of the company. It helps to build a strong financial back ground and foundation for the growth of ACC and its subsidiaries. The income statement and position statement helps to obtain an idea about the financial performance of ACC. The following Tables briefly describe the financial performance of ACC---

81 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

82 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

83 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

FINANCIAL STRUCTURE

The above table gives an idea of the financial position and profit making capacity of the company. Thus, from that a detailed study on financial structure of the company can be conducted in the following manner. a) Capital Structure ACC has basically raised its capital by issue of capital shares to various sections at a face value of Rs. 10 per share. Hence the following shows the capital structure of ACC.

CAPITAL STRUCTURE OF ACC

Rs. Crore AUTHORISED 22,50,00,000 Equity shares of Rs. 10 each 10,00,00,000 Preference share of Rs. 10 each ISSUED 18,87,88,179(Prev.year-18,87,29,706) Equity share of Rs. 10 each SUBSCRIBED 18,77,40,292(Prev.year-18,76,81,819) Equity Share of Rs. 10 each fully paid) Add: 3,84,060(Prev.Year 3,84,060) Equity share of Rs. 10 each Forfeited : Amount paid TOTAL 225.00 100.00

2010 Rs. Crore

2009 Rs. Crores 225.00 100.00 325.00 188.72

325.00 188.78

187.74

187.68

0.20 187.94 187.94

0.20 187.88 187.88

84 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works b) Working Capital Structure ACCs working capital requirement is mainly meet out through two sources. i) ii) Long Term non-convertible debenture Bank Loan

In 2009, the company borrowed Rs. 300 crores through non-convertible debentures having a five year maturity at an all inclusive cost of 8.45% per annum. As on 31st December, 2009, the companys debt equity ratio stood at a comfortable level of 0.09:1. c) Fixed Deposits The company had discontinued its fixed deposit schemes in the financial year 2001-2002, and as on December 31, 2011 the total amount of fixed deposits matured and remaining unclaimed was Rs. 17.53 lakhs. The following table gives the idea of total Fixed Assets of the company.
FIXED ASSETS OF ACC FIXED ASSETS Tangible Assets 1. Freehold Land 2. Leasehold Land 3. Building 4. Machinery, Plant and Kilns 5. Road , Bridges and Fence 6. Water Works 7. Railway Sidings 8. Rolling Stock 9. Furniture, Fixtures and Equipment 10. Motor car, trucks, etc. 11. Electrical Installations Sub Total Intangible Assets 12. Computer Software Mining Rights Sub Total TOTAL Previous Year 14. Capital Work-in-Progress (including Capital advance Rs. 201.74 Crore) Previous Year - Rs. 356.33 Crore) As at 31.12.2011 148.72 31.04 576.82 2539.98 87.23 6.74 39.04 43.75 77.38 10.52 567.88 4129.1 10.17 19.02 29.19 4158.29 3469.70 2156.21 As at 31.12.2010 100.54 29.04 431.54 2179.37 78.62 6.08 29.67 19.65 69.21 10.72 491.72 3446.16 23.54 23.54 3469.70 1602.86

85 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works d) Sources of Funds Sources of Funds simply show the various sources or medium through which the company can raise funds for the working of the company. The following table shows the various sources of funds of the company.
SOURCES OF FUNDS 2011 Rs. Crore 2010 Rs. Crores

Sch. SOURCES OF FUNDS: Shareholders Funds: Share Capital Share Application Money, pending allotment Reserve and Surplus Loan Funds Secured Loans Unsecured Loans

Rs. Crore

1 2

187.94 0.08 5,828.20 6,016.22

187.88 4,739.85 4;927.73 450.00 32.03 482.03 335.79

3 4

550.00 16.92 566.92

Deferred Tax Liabilities(Net) (Refer Note-14(b) TOTAL FUNDS

349.25

6,932.39

5,745.55

e) Dividend Paid ACC use to pay adequate amount as dividend to its shareholders. In August 2009, the company had paid an interim dividend of Rs. 10 per equity share, involving an outgo (including the dividend distribution tax) of Rs. 219.60 crores. The Directors of the company have decided to recommend a final dividend of Rs. 13 per equity share of Rs. 10 each. The total dividend for the year 2009 would accordingly be Rs. 23 per equity share as against Rs. 20 per equity share for the year ended December 31, 2008. The total dividend outgo for the current fiscal would amount to Rs. 505.14 crores, including dividend distribution tax of Rs. 73.38 crores, as against Rs. 439.12 crores, including dividend distribution tax of Rs. 63.79 crores in the previous year.

86 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

The following Table provides a complete structure of dividend paid by ACC.

DIVIIDEND ISSUED 2011 Rs. Crore 2010 Rs. Crores 187.65 187.68 63.79 0.02

Sch. Interim Dividend Proposed Dividend Dividend Distribution Tax Previous year dividend

Rs. Crore 187.80 244.06 73.38

f) Share Holders List ACC has a well structured share capital fund. During the year, the company allotted 58,473 equity shares of the face value of Rs. 10 each. The following Table gives a complete list of the shares holders of the company.

87 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works


SHAREHOLDING PATTERN AS ON MARCH 31, 2012 Category of Shareholder No. of Shareholders Total No.of Shares Percentage of Share Capital

(A) 1 (a) (b) (c ) (d) (e)

Shareholding of Promoter and Promoter Group Indian Individual/Hindu Undivided Family Central Government / State Govt.(s) Bodies Corporate Financial Institutions/Banks Any other (specify) Sub-Total(A)(1) Foreign Individuals(Non-Resident Individuals/ Foreign individuals) Bodies Corporate Institutions Any Other(Specify) Sub Total(A) (2) Total Shareholding of Promoter and Promoter Group(A)=(A)(1)+(A)(2) Public Shareholding Institutions Mutual Funds/UTI Financial Institutions/Banks Central Govt./State Govt.(s) Venture Capital Funds Insurance Companies Foreign Institutional Investors Foreign Ventures Capital Investors Any other (specify) Sub Total(B)(1) Non-Institutions Bodies Corporate Individuals i. Individual shareholders holding nominal share capital upto Rs. 1 lakh ii. Individual shareholders holding nominal share capital in excess of Rs. 1 lakh.

0 0 1 0 0 1

0 0 93888120 0 0 93888120

0 0 50.01 0 0 50.01

2 (a) (b) (c ) (d)

0 1 0 0 1 2

0 541000 0 0 541000 94429120

0 0.29 0 0 0.29 50.30

(B) 1 (a) (b) (c ) (d) (e) (f) (g) (h) 2 (a) (b)

132 123 4 0 0 385 0 0 644 1329

4236414 17856708 287815 0 0 3 34269005 0 0 56649942 9730215

2.26 9.51 0.25 0 0 18.25 0 0 30.17 5.18

98615 126

21962894 3315233

11.70 1.77

88 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

Category of Shareholder

No. of Shareholders

Total No.of Shares

Percentage of Share Capital

(c )

Any Other (specify) i. Limited Liability partnership

565

0.00

C)

ii. Shares held by Pakistani Citizens vested with the Custodian of Enemy property iii. Other Foreign Nationals iv. Foreign Bodies v. NRI/OCBs vi. Clearing Members/Clearing House vii. Trusts Sub-Total (B)(2) Total Public Shareholding(B)(1)+(B)(2) TOTAL(A)+(B) Shares held by Custodians and against which Depository Receipts have been issued. GRAND TOTAL(A)+(B)+(C )

172 4 0 1976 130 36 102390 103034 103036

385965 1130 0 743368 407797 664785 36666294 93316236 187745356

0.21 0.00 0 0.40 0.22 0.22 19.53 49.70 100.00

0 103036

0 187745356

0 100.00

89 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Foreign Promoters Group Disclosure Foreign Promoters shareholding in the Company is held by Holderind Investments Ltd. Maruitius and indirectly through its Indian subsidiary Ambuja Cements India Pvt. Ltd. Holderind Investments Ltd., Mauritius (Holcim Mauritius) has informed the Company that, Holcim Limited, Holderfin B.V., Holcim(India) Private Ltd. And Ambuja Cements India Pvt. Ltd. Are companies belonging to the same group (hereinafter referred as Holcim Group) as defined under the Monopolies and Restrictive Trade Practices Act, 1969.

Statement showing Shareholding or more than 1% of the Capital as on 31.12.2009 Category of Shareholder No. of Shareholders 86191067 541000 Total No.of Shares 86732067 31681260 4984776 Percentage of Share Capital 46.20 16.88 2.66

1 2 3 4

Ambuja Cement India Pvt.Ltd.(Promoter) Holderind Investments Ltd.(Promoter) Life Insurance Corporation of India ICICI(Prudential Life Insu.Co.Ltd.) J.P.Morgan Asset Management(Europe) S.A.R.L A/c JP Morgan Funds Emerging Market Equity Fund TOTAL

3067219 126465322

1.63 67.36

SOURCES OF FINANCE Financial Policy Capital structure Ratio analysis Leverages Depreciation policy] Dividend Policy Tax Payments Budgets Income statement

90 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works FINANCIAL HIGHLIGHTS

2011 INCOME STATEMENT Net Sales Operating EBIDTA Profit Before Tax Profit After Tax BALANCE SHEET Net worth Borrowings Net Fixed Assets Current Assets Current Liabilities Capital Employed SIGNIFICANT RATIOS Operating EBIDTA/ Net Sales Return on Capital Employed Return on Net Worth Current Ratio Debts Equity Ratio Price Earning Ratio Dividend Yield Ratio Net Worth per Share(Rs.) Net Sales per Share(Rs.) Basic Earnings per Share(Rs.) 9,341 1,921 1,540 1,325

2010 7,717 1,1812 1,461 1,120

Rs. Crore 2009 8,027 2,643 2,294 1,607

2008 7,283 1,899 1,737 1,213

7,192 511 6,643 3,618 3,664 8,221

6,469 254 6,645 2,753 3,746 7,355

6,016 567 6,315 2,294 3,152 6,932

4,928 482 5,073 2,760 2,766 5,746

20% 19% 18% 0.99 0.07 16.29 2% 385 28.00 70.59

23% 25% 17% 0.73 0.08 18.04 3% 345 30.50 59.66

33% 49% 27% 1 0 10 3% 320 428 85.6

26% 40% 25% 1 0.1 7.39 4% 263 388 64.63

91 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

HUMAN RESOURCE DEPARTMENT


The true index to a ACCs greatness is not only its turnover, not only its quantum of profits, but its human resource. The ultimate resource - backed by a loyal and dedicated workforce- helped ACC to prove itself as an expert in the management of change. Its success will be judged not merely by the market value of its shares but by the pride of place the company occupies in the hearts and minds o the people (both internal and external) it seeks to serve. The company recognized that a motivated, responsive and accountable human resource team is critical in enabling it to fulfill its long term agenda for growth and competitiveness. A clearly defined HR strategy endeavors to ensure that the right people are in the right place doing the right jobs in the right way-through a well devised performance management system, through carefully planned training and career development programmes and through need based recruitment. An important ingredient of the plan is to motivate employees by improving the quality of life, addressing compensation issues, providing regular feedback and open international communication such as through the newly re-launched intranet portal accelerate.

HUMAN RESOURCE DEPARTMENT OBJECTIVE

The basic objective of Human Resource Department are as follows: To attract, retain and develop efficient and effective manpower. To empower employees for organizational effectiveness To identify training and development To evolve and implement pragmatic employees relation policy.

92 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

ORGANIZATION CHART The Human Resource Department is provided with adequate experienced and competent personnel for carrying out the activities of department. The organization chart of department is shown below:

HR MANAGER

ASST. HR MANAGER

SENIOR HR OFFICER

SENIOR HR OFFICER

Junior Officer Security Junior Officer Recruitment & Training

Junior Officer Safety

Sr. Superident Civil Department Sr. Superident Time-Keeping Department

Junior Officer Establishment Section

93 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

ABOUT: HUMAN RESOURCE DEPARTMENT Employees ACC has a large workforce of about 9000 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 skilled qualities as value-adding human capital are well known in the industry. The work force of ACC is usually classified into two main categories on the basis of skills and positions or status acquired by them. They are: o Wage Board Employees o Management staff Wage Board Employees Wage Board employees are those which are technical in nature. They usually deals with production activities i.e. they are directly involved in the production process. Management Staff Management Staff usually deals with managing activities. Management staff are indirectly involved in or assist the production activities. They occur higher position and are non-technical in nature. They require less physical and technical skill and more intellectual skill i.e. creativity and innovative skill. The following tabular description gives a complete picture of ACCs classification of employees. A) On the basis of employees skill The Wage Board Employees of ACC are further classified on the basis of their skills and salary or wages received by them in the following two categories: 1. Daily Paid - Skilled employees 2. Monthly Paid - Semi-skilled employees 94 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

Employees Classification Daily paid Skill employees Category A B C D E Skill Level Skilled higher Skilled upper Skilled lower Semi-skilled Unskilled

Monthly paid Semi-skilled Employees Category Asst. General Manager Staff Officer Junior Staff Officer Supervisor Clerk I Clark II Tally checker Semi-skilled Grade Wage Board Gr. VII Wage Board Gr. VI Wage Board Gr. V Wage Board Gr. IV Wage Board Gr. III Wage Board Gr. II Wage Board Gr. I

Recruitment & Selection 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. i) Recruitment Recruitment in ACC is a very fair and transparent process with adequate opportunities to look for suitable candidates internally as well as from outside. Applicants 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, preliminary short-listing, interviews and final selection. Every

95 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works attempt is made to make the selection process as objective as possible by incorporating tests of competence. 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 or at the earliest thereafter. ii) Selection The entire selection process is carried out by the Central Recruitment Committee. The process includes:-

Screening of applications Preliminary short-listing Tests Interviews Medical Examination Final Selection Placement & induction. RECRUITMENT

CENTRAL RECRUITMENT COMMITTEE (CRC)

SELECTION PROCESS
96 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

Performance Appraisal The Companys performance management system is in itself a benchmark that provides ample opportunities and motivational incentives to employees so as to reward and retain good talent within the Company. These incentives include: a) Performance Linked Incentives As per this an additional incentives in monetary or in fringe benefit form will be provided to those employees who perform in an outstanding manner. b) Good Work Awards Awards were given to employees as a lot of appreciation for their innovative and creative ideas etc. c) Special Increments Besides regular pay and other incentives certain other increments or additional amount were given by the company to employees for accomplishment of special task and also for motivating them. d) Promotion & Transfer After every three years the employees seniority list is prepared and a committee is constituted to review the performance of the employees and according to the performance, qualification and experience the employee is promoted to the next cadre. After the promotion some employees are transferred to another department to place them suitably according to their promoted post and performance. e) Best House-Keeping Works As per this programme of Corporate Office of ACC, each plant of ACC will be rewarded with points ranging from 1 to 5 (maximum point). Under this, points are awarded on the basis of the cleanness and eco-friendliness of each plant. The plant which is most clean that will be rewarded with 5 points or on the basis of cleanness any point between 1 to 5. For each point each worker of the plant will be awarded with Rs. 90 per point.

97 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

Other Performance Appraisal Methods are: o o o o o Letter of Appreciation Nomination to external training programmes in India and Abroad. Public felicitation and appreciation. Best employee/employees of the month awards Training the trainer facilitation.

Welfare facilities Employees welfare receives prime attention at ACC. They have several schemes for general welfare of the employees and their families. These cover:Housing facilities. At ACCs cement plants and factories, employees are provided furnished and unfurnished 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. Hospital facilities. Liberal medical benefits are made available to employees and their family members by way of reimbursements towards normal medical treatment, domiciliary treatments and special sanctions for serious illness. Each of ACCs townships has well-equipped health care centres with qualified medical staff and facilities, ambulance, referrals and tie-ups with reputed hospitals for specialised treatment. In addition, there are regular health checkups, camps and programmes. School facilities: ACC townships have excellent schools that are often the best in the district. Education at these schools is subsidized for employees wards. ACC offer attractive scholarship allowances for children studying at places away from their parents, merit scholarships for outstanding children and financial assistance for employees children to pursue higher professional education.

98 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

Loan & Financial assistance: Employees are eligible to apply for loans and financial assistance for various purposes such as purchase of assets, residential premises as well as a scheme that provides for supply of cement at subsidized rates to those building their own houses. Other facilities: The following are some other facilities provided by ACC to their employees: o o o o o o o Uniform and footwear facilities Canteen facility School bus facility Rest Hall and shelter facility Swimming pool facility Co-operative society Sports club

Training & Development ACCs new Performance Management System incorporates a process called Competency Assessment and Training and Developmental Needs wherein appraisers are specifically called upon to identify and assess training needs of employees at specific intervals that do not coincide with Performance Appraisals. This is so that training needs can be assessed objectively. ACC consists of a vast cell of Training and Development. It is controlled by Human Resource department of each respective plant. It is basically divided into two cells: a) Training Cell Training Cell: (b) Development Cell

Training is imparted to take care of an individuals career development as well as functional and skill enhancement. Competency and Development training inputs include Skill and general performance enhancement, communication skills and Career development. Functional training needs are identified and conducted by functional departments while Corporate HR organizes competency and developmental inputs. 99 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

The Sumant Moolgaokar Institute (SMEI) is an eloquent testimony to the ACC commitments to training. It provides exhaustive training in various trades like Electrician, Instrument Mechanics and Foreman etc. in various discipline. A third training institute The Technical & Training (TMT) Division located at RCD-conducts training programmes/workshops, seminars for Officers/Managers of the cement and other industries at its training centre in Thane. Besides this as part of employee development programme, many training programmes are arranged by the Training Department. Some of them are : o Executive Development Programme is done for the Management level employees wherein Management effectiveness, quality improvement, time management etc. are educated. o Supervisory Development Programmes are arranged for the supervisory level of employees wherein Role & Function of a Supervisor, Discipline, Interpersonal skill, Work planning etc. are educated. o Workers Development Programme is arranged for the benefit of workers wherein work and work culture, discipline at work, self awareness, attitudinal change etc. are educated. o The Analytical Skill Development Programme help to improve process and analytical ability in order to uncover and examine problems more effecatively. o The fresh ITI/Diploma holders and Engineering Graduates are also given training in their field of work and Apprenticeship Training. After the Training training reports are collected from each individual and the same is studied and necessary improvement in the training programme is done from time to time. Development Cell: ACC basically believes in sustainable development strategy. Its policy is to measure the actual performance. As per this sustainable development programme ACC believe in Top Bottom Line Approach. In this they measure their success on the basis of three approaches: o Economic Prosperity o Contribution to the wellbeing and preservation of the plant and its people. o Social & Local wellbeing 100 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

ACC longed several new programmes in order to strengthen its existing Human Resources. Under this the following programmes has been introduced: o Strategic Talent Management A transparent and efficient system for managing talent has been conceptualized and is under implementation. This new Strategic Talent Management programme (STM) help to create a blueprint for development of talent in the organization by introducing effective measures to identify companywide talent, build adequate strength for future needs through succession planning for critical positions while creating a healthy balance between internal and external talent in the organization. o Special change Management initiatives for shop floor associates ACC used to annually launch a number of transformation initiatives that involve shop floor associates and was directed at developing greater team working skills amongst them and overall manufacturing excellence. o Innovate to Excel This is a special flat form to encourage change and innovation at the work place. Cross functional teams across various plans, sales units and functional department are encouraged to work on an innovative idea/project. The teams then compete at unit and regional levels and finally the winning teams participate in a competitive presentation of their project at the corporate level. o Linguistic Development Programme Under this programme each and every employee of ACC undergoes training and development programme in various languages specially in Hindi and English. Since ACC has a big pool of national and international markets so in order to maintain and provide best services to customers effective communication skill is necessary for each and every employee of ACC. o System Knowledge ACC also provide basic and high level knowledge in computers in various training centers of ACC basically to make its employees competent enough in the technical world. 101 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works o Workshop The plants of ACC has a workshop inside the plant where each and every employee of plant is provided with various development programmes periodically and on a regular basis. Training is provided in safety related matters, production techniques, new technologies and also provided with programme covering refreshing activities to keep employees fresh and health. o Quality Circles The employees of ACC plant formulate small committees i.e. Quality Circles in order to improve quality of their work life. It consists of 10 members from each and every department of plant. This committee is named as Parivarthan. Their mantra is Change to Excel. Grievances Handling Techniques Grievance Cell is functioning under the Department of HRD wherein the grievances of the employees are heard and solutions are found. A Grievance Committee is formed wherein members from both the Management and Trade Unions are selected in ratio of 50:50. Timely meetings are held by this committee to discuss various matters relating to the grievances of the employees. The solutions are recommended by this committee and the same is implemented with the approval of the Management. In order to handle and reduce grievances level, the Grievance Cell under HR Department of ACC has introduced various methods. Some of them are: o Enabling employee communication The Accelerate portal was introduced in 2008 in order to encourage and facilitate the communication among employees and employers and among employees themselves. This facilitated employees to communicate across level and locations on vide variety of issue related to work life and personal life and this helps the management to found solution to such issues. o Complaint Box Complaint Box facilities are provided within the factory premises for internal customers of ACC. Under this employees can put their complaints and problems even without mentioning their names. The incharge of this complain box will be the Grievances Handing Committee. 102 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

o Employees Satisfaction Surveys In addition to periodic internal Employee Satisfaction Surveys, ACC participate in Employee Satisfaction and Work Places Surveys conducted by reputed external agencies and organizations like Hewitt Associates Grow Talent. And from time to time, ACC has also retained reputed firms like Mercer and Boston Consulting Group to study our internal work environment and employee policies and suggest areas of improvement. ACC 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 deep respect for the company, its performance management system and its overall business performance.

103 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Trade Union ACC has a strong and well designed trade union which always act in the interest of employees and also employers. ACC Madukkarai plant also has a well structured trade union and union office within the factory premises. The trade union functioning in ACC Madukkarai Cement works is All India Trade Union Congress (AITUC) which is functioning under the banner of Indian National Trade Union Congress (INTUC). The Secretary of Trade Union of Madukkarai plant is Shri N. Nanjappan. Trade under his leadership is functioning in a efficient and effective manner. The main focus area of Trade Union is : a) Safeguarding interest / benefits of employees b) Co-operating and Co-coordinating the Management for smooth functioning.

Achievements of Trade Union 1. Common uniforms Earlier Wage Board employees have blue uniform and Management Staff has creamish color uniform. But as per actions of Trade Union from this year onwards a common uniform (creamish one) came into existence to avoid any type of discrimination. 2. Participative management Trade Union always focus on Participative Management mode i.e. all development and decision making committees should have 50:50 ratio of members .It means 50 members of management staff and 50 from employees side 3. Compensation committee This committee was formulated by Trade Union in order to provide appropriate and adequate compensation to those employees who has lost their life or met with physical incapability while working in the factory premises or outside also. In this committee both employer and employees make contributions. Then the fund of this committee is used for making livelihood or for compensating the aggrieved party or their family members. 104 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works 4. Learning gallery It is a small gallery maintained by trade union. It consists of old records and references related to production and employees. Only staff of ACC has access to this gallery. Employers Association There is an employers association also to safe guard the interest of employers. It includes -- Supervisors Association This association of supervisors is engaged in protecting the interest of Supervisory Staff. Officers Association Officers association is working in parallel of supervisors association for the benefits of officers. Time Keeping Department Time Keeping Department comes under HR Department. It is a section of HR Deptt. It mainly deals with Time Keeping process and remuneration calculation of etc. of employees. Objectives The main objectives of Time Keeping Deptt. is as follows: To facilitate preparation of pay roll if wages are paid on time basis. To maintain discipline in attendance To calculate overtime To control labour cost. To introduce incentive plans

Functions The basic functions of Time Keeping Deptt. are as follows:

105 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

1. Attendance keeping Time Keeping deptt. mainly deals with the process of maintaining the attendance of each and every employees of ACC. In order to maintain the attendance of the employees of ACC, the following methods are adopted: a) Time card system Time Keeping Deptt. has a separate rack having various bins. Each bin consist of a time card in the name of each employee of an organization. The employees going out and coming in the factory premises should make entry in it. Usually time card system is for wage board employees. b) Identity Card Recorder System (ICR) Time Keeping Department has 4 ICR systems inside the plant premises at the entrance and 2 outside the plant i.e. in General Office. Under this ICR machine has 2 sections in and out. Each employee should show his identity card containing his name and employee code no. in the ICR machine whenever he comes or goes outside the company premises of the organization. Usually ICR Time Keeping system is for Management Staff. c) Register Maintenance This system is usually for contract labour. Under this whenever each contract employee goes outside or comes inside the plant they must make entry in contract labour attendance register and should obtain a gate-pass from time office department. Hence with the support of such system a proper and systematic attendance taking system is maintained within the ACC. 2. Remuneration Policy and Calculation Time keeping deptt. deals with formulation of remuneration policies and calculation of remuneration of each and every employee of ACC and submit the report to HR deptt. and from there distribution of remuneration takes place. a) Remuneration Policy

106 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works The remuneration structure for the Managing Director and other employees consist of salary, performance incentives, perquisites and allowances, contribution to provident fund, superannuation fund and gratuity. The non-executive Directors are paid sitting fees for each meeting of the Board/Committee of the board attended by them (approx. Rs. 20,000/- per meeting). In addition to the sitting fees, the non-executive Directors are entitled to received commission not exceeding 1% of the net profit of the company as computed in the manner provided by section 198 (1) of the Companys Act 1956. b) Remuneration calculation Time Keeping Deptt. usually deals with calculation of remunerations paid to employees of ACC. As per this employees are paid with basic pay, D.A., HRA, Conveyance Allowances, Total productive maintenance allowances, night shift allowance, washing allowance, periodical allowance, educational allowance etc. as per the services rendered by them.

Basic Pay The following is the list of basic pay of wage board employees:

Class of workers

Rate of wages Maximum 4040 3580 3199 2893 2670 5090 4785 4480 4175 3870 3570 3270 3045 Minimum 2220 2180 2149 2123 2110 2290 2265 2240 2215 2190 2170 2150 2135

Annual increment 91 70 52.50 38.50 28 140 126 112 98 84 70 56 45.50

A Grade B Grade C Grade D Grade E Grade Grade VII Grade VI Grade V Grade IV Grade III Grade II Grade I Tally Checker

107 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

Other pays The following is the list of other pays besides basic pay of employees (it is common to all):

Other pays D.A. Bonus HRA CA TPM Night Shift Allowance Washing Allowance Periodical allowances Educational allowance Quarter Rent

Monthly Pay 7259.60 20% (Basic pay + DA) 125 (C-D-E), 135 (A-B) 950 151 12.5% (Basic Pay x No.of nights) 20 185 500 60

Other Monitory facilities The other monitory facilities besides the above pays are as follows: a) Provident Fund PF is usually 12% of the basic pay and DA. Employers contribution to PF of employees is 3.67% and 8.33% goes to employee family pension scheme under PF. b) Employees State Insurance (ESI) The employee having salary or basic pay between Rs. 1000 to 15000 will enjoy ESI benefit. ESI card provides the card holder and other persons dependent on him i.e. father, mother, wife, children (upto 18 years age), facility to get treatment under ESI hospitals at free of cost or in private hospitals at expenses of ESI. Employee contribute 1.75% of salary in ESI fund and employer contribute 4.75%. This ESI remittance amount is paid to ESI local office Manager at a half yearly period i.e. at every six months period (1st April 30th Sept. and 1st Oct. 31st March) .

108 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works The ESI cheque should be remitted in local office within a period of 21 days from due date. c) Insurance Coverage The employees of ACC are covered under the following Insurance Policies: Employee Deposit Link Insurance(EDLI) EDLI comes under the banner of LIC. The employer bear this EDLI amount for employee (contribution is 0.005%) . In case of death of employee before retirement, the eligible amount given to his nominee by LIC is Rs. 62,000/General Insurance The employees of ACC are covered by Janatha Accident Policy also. Fringe benefits The non-monetary benefits enjoyed by employees of ACC are as follows: Medical benefits LTC Allowances Canteen Facility (Tea at 35 paisa, food at Rs. 1 )

c) Mode of Payment The employees of ACC are paid in the following ways: Monthly paid employees 1 day before the last day of every month Daily paid people on 6th day of every week Contract labours paid per day (Rs. 160 per day to male & Rs. 164 per day to female)

The salary of employees are paid to them through bank. ACC has account in two banks i.e. Canara Bank, Madukkarai & State Bank of India, Kunaimuthu. It depends on employees choice that in which bank out of this two their individual account should be opened. 109 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

3. Register Maintenance Time Keeping Department deals with maintenance of the following registers for recordical evidences of future references and proof: Goods inward register Goods outward register Attendance register Returnable Register

4. Shift Management Time Keeping department keep records of shift of employees of ACC. ACC plant works round the clock in various shifts. The following are shifts of employees in ACC. Shift Class A Shift B Shift C Shift Half Hour meal time for each shift General Shift(For non-technical employees) Meal Time Shift Time 12 A.M. to 8.00 A.M. 8 A.M. to 16.00 P.M. 16.00 P.M. to 12.00 A.M. 7.30 A.M. to 16.30 P.M. 12 P.M. to 13 P.M.

Time Keeping department provides siren at end and beginning of each shift.

Safety Department ACCs brand name is synonymous with cement and concrete. Hence ACC and its plants come under hazardous plant categories. So as per the statutory requirements, there should be one well structured and well equipped Safety Department with a Safety Committee. Some of the statutory requirements of Safety Department of a hazardous plant are as follows:

110 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works 1. Safety Committee The Safety Committee should consist of a Safety Officer who should have diploma in safety acquired from either Central level or Regional level institute. The safety committee should consist of members both from Management and Employees side. 2. Safety Policy The hazardous plant should also have Safety policies describing the measures of safety for persons both inside and outside the plant. It should consist of safety guidelines prescribed as per Govt. Every year the Safety Policy guideline should be reviewed in order to cop up the changing environment.

3. Safety Audits Safety Audit should be conducted once in a month to find out any unsafe points and to avoid unnecessary accidents. Functions The Basic function of Safety Department of ACC are as follows: 1. Safety Committee Meeting Every month Safety Committee of ACC comes together for conducting a meeting and discussing safety related matters and points to avoid accidents inside the plant.

2.

Safety Gate Meetings At the very first day of every month each and every employee of plant conduct a meeting at the factory gate to discuss regarding safety measures and to train employees to work safety inside the plant.

3.

Safety Audits Safety Audits i.e. verification is conducted at departmental level under this verification is done to assure that Safety Measures are followed by each and every department as per safety guidelines prescribed by statue.

4.

Training & Awareness Programme

111 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works It use to carry out training and awareness programme for employees in ACC in which they use to train them regarding safety measures to be followed while working inside the plant.

5.

Provide Personnel Protective Equipment (PPE) Safety Department keep records of PPEs and also deals with issue of PPEs. It issue the following PPEs: - Helmet, Safety shoe, Goguls, Ear plug , Hand glows etc.

6.

Fire Protection System Safety Department also deals with the fire protection systems. It also have a fire protection team which is lead by security officers. This team deals with fire related dangers inside and outside the plant premises.

7.

8.

Report Preparation It is engaged in the process of report preparation. It has to report to Safety Inspectors which comes as a representative of Govt. to inspect the safety activities of the plant. If he feels any type of dissatisfaction then he can cancel even the license of the plant. Suraksha Bandhan ACC takes care of their contract employees under the banner of Suraksha Bandhan. Under this the contractor intents management plan implemented in phased manner.

Security Department Security Department also comes under HR Department. It is an important department of HR Department. It mainly deals with Security related issued etc. both inside and outside the plant. Security Deptt assists the HR Deptt is security related matters and also helps to keep recordical evidences regarding each incoming and outgoing resources. Functions The following are the basis functions of Security Department Controlling men and material Incharge of Fire Team Traffic Control Checking on Returnable Materials which is going out Maintenance of Guest Houses, Accommodation for guests and officials at the Guest House. 112 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Collection and collation of intelligence information regarding union activities and happenings in surrounding villages. Supervision of ingress and egress of men and material at the gate. Maintenance of arms and ammunitions Liasionning with Police Department. Providing assistance to HR Department for allotment taking over for allotment/taking over of houses in the colony. Providing security to men and material of the company from theft and sabotage Management of school buses Receipt and issue of diesel in quarry Travel arrangement for guests and official trips Maintenance of fire fighting equipments Organizing January 26th and August 15th parade Training of security staff and other employees in fire fightings.

ALTERNATIVE FUEL AND RAW MATERIAL DEPARTMENT (AFR)

ACC has embarked wholeheartedly on a trend setting path of promoting the use of Alternate Fuel and Raw Materials. Hence ACC had introduced a separate department known as AFR (Alternative Fuel and Raw Material) Department. The AFR team offers total solutions for waste management including testing based on co-processing. This is an environmentally sound technology to avert environment damage cost, threats to human health and other risks and liabilities. It is a new concept for Indian industry. AFR department mainly deals with the process of Co- processing approach Co-processing refers to the use/disposal of waste materials in industrial processes as alternative fuels and raw materials to recover energy and material value from them, if any. Co-processing of hazardous wastes in existing cement kilns provides a simple, sustainable, local and immediate solution to the problem of disposing hazardous wastes without affecting the environment, and without huge investments. Co-processing is indeed a more environmentally sustainable method of waste disposal as compared to the conventional methods of land filling and incineration because it involves reduced emissions and there is no resultant residue from it.

AFR POLICY ACCs Vision for AFR Business is to be the most respectable service provider to the waste generators in India. The company has an AFR Policy that governs its behavior and operations in co-processing various kinds of wastes in cement kilns. In order to comply 113 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works with the principles listed in the policy as also to provide better services to our customers, ACC is setting up essential infrastructure and facilities including ISO 17025 certified AFR testing laboratories for speedy and accurate evaluation of wastes, continuous emission monitoring systems on kiln stacks, waste specific feeding arrangements and preprocessing platforms at different locations.

ORGANIZATION CHART The AFR Department consists of efficient and highly skilled personnels enjoying suitable and competent positions. The following is the organization chart of AFR department of ACC Ltd.

AFR DIRECTOR

REGIONAL BUSINESS HEADS

SUPPORT FUNCTION

REGIONAL COODINATORS REGIONAL PLANT COODINATORS SUPPLY CHAIN MANGER- I


PLANT COORDINATOR

SUPPLY CHAIN MANAGER --II

114 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

ADVANTAGES OF AFR DEPARTMENT The following are some of the advantages provided by the AFR department: Reduce the coal consumption Reduce the cost up gradation Increase the brand image of the company Help in waste disposal process Act for social well being.

DEPARTMENTAL FUNCTION AFR department usually deals with Replacement of fuel (coal) Replacement of raw material

a) Replacement of fuel ACC has successfully demonstrated re-channeling the use of industrial wastes as fuel in existing cement kilns. So ACC now extends co-processing services in the country as a safe and environment friendly method for management of wastes to industry and society. We are capable of accepting not only those wastes which have some raw material or fuel value, but also other wastes which are difficult to handle and dispose. All types of wastes can be effectively disposed off in this way without any harmful emissions, due to the high temperature and long residence time of the material in cement kilns. An efficient cement kiln can thus provide an environmentally sound and cost-effective recovery or disposal option for most wastes including hazardous and non-hazardous ones but excluding banned wastes. These banned wastes comprise anatomical hospital wastes, asbestos containing wastes, bio-hazardous wastes, electronic scrap, entire batteries, explosives, high concentration cyanide waste, mineral acids, radioactive wastes and unsorted municipal garbage. It also deals with Reduction of Green House Gases (GHG) emissions The usage of AFR in cement process does not lead to any additional emissions. This fact is reinforced through the trial runs that have been conducted by third party monitoring agency which demonstrates that all emissions in the kiln stacks including the heavy metals, POPs, PCDDs and PCDFs are well within the norms prescribed by CPCB for the incinerators. In fact, some of the emissions (such as NOx)\ were reduced by disposing/using the wastes in the cement process. The overall CO2 emission also decreases. Thus, ACC is going a long way in promoting co-processing 115 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works as an environmentally sustainable solution for the management of hazardous and non hazardous wastes from the industries. Further, the cement plants already exist, so there is no need to invest in infrastructure development for waste disposal, and this reduces the usage of public funds. Considering the cost towards environmental remediation and the expenses related to health and well being of the society, coprocessing offers the most economical solution for the management of wastes.

Procedure for acquisitions of waste materials The waste materials are usually acquired from respective customers by creating contract with them with the help of procurement department. The following is the graphical representation of acquisitions of waste materials

Identify the Customer

Initiate Regular Usage

Customer Interaction Suggest alternative solution Submit to Authorities

Sample Evaluation

Undertake Trial Burn Finalize usage plan

Clearance from authorities by AFR India & customer 116 SMBS, Mahatma Gandhi University, Kottayam

Co-processing agreement with customer

ACC Limited Madukkarai Cement Works b) Replacement of Raw Material ACC has successfully demonstrated rechanneling the use of industrial wastes such as fly ash and slag to make premium quality blended cements. Today it is the largest producer of blended cements in the country, offering two varieties of blended cements namely; Fly-ash based Portland Pozzolana Cement and Portland Slag Cement. Fly Ash is generated as a waste by Thermal Power Plants, while Slag is a waste by-product from steel plants.

Fly-ash based Portland Pozzolana Cement (PPC) It is made by intergrinding high strength clinker with processed fly ash. This imparts a greater degree of fineness to the cement and improved workability properties while mixing. Concrete made of this cement is more corrosion resistant and impermeable which together provide better long term strength and durability of structures.

Portland Slag Cement (PSC) It is manufactured by blending and intergrinding OPC clinker and granulated slag in suitable proportions as per approved norms of consistent quality. Portland Slag cement imparts strength and durability to all structures. PSC has many superior performance characteristics which give it certain extra advantages when compared to Ordinary Portland Cement The manufacture of blended cements using pollutant industrial wastes is among the most publicly recognized eco-friendly practices demonstrated by the cement industry. ACC has been a trend-setter in the industry in this respect with as much as 85 % of its total production comprising these environment friendly green cements. Following our lead, the share of blended cements in total production has been growing steadily in the last few years. Blended cements involve less combustion and hence less emissions. The use of these materials to make value added cements is acknowledged as serving many benefits conservation of limestone (a precious mineral), energy conservation, recycling of pollutant industrial wastes and reduction of greenhouse gases.

Clinker Factor ACC has been able to reduce the clinker factor to 67.58% by utilizing other compatible industrial wastes like blast furnace slag and fly ash.

117 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Mineral Component and Clinker Factor 2011 67.58 1.86 2010 69.43 1.75

Clinker factor % Blast Furnace Slag Consumption(Million tones/annum) Coal Fly Ash Consumption(Million tones/annum)

3.54

2.99

In 2006, the company was felicitated by three ministries of the Government of India (Power, Environment & Forests and Science & Technology) for registering the countrys highest utilization of fly-ash.

c) Testing facilities

ACC has ISO 17025 certified AFR testing laboratories at its Wadi, Madukkarai and Kymore plants and at the Technical Support Services in Thane- near Mumbai, for prompt and accurate determination of waste characteristics. They will be manned by trained chemists. Over 600 samples from different industries have been tested so far.

AFR LABORATORY OF ACC MADUKKARAI PLANT 118 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works AFR Laboratory of Madukkarai plant has been inaugurated on 17th March 2008.AFR Laboratory mainly deals with the Finger Print Analysis process. AFR Laboratory of Madukkarai plant consists of 16 ultra technological equipments. They are as follows: Karlfischer Ion specific electrode Supra pure water analyser Flesh point analyzer Flame photometer analyzer Microwave digesting Gas chromatography (GC) Bomb calorimeter Proximate analyzer Ultimate analyzer Autolitrator Moisture balance Radioactive Dozimeter Muflfurnace Hot air oven Inductive coupled plasma spectro-photometer(ICP)

AFR DEPARTMENT OF MADUKKARAI PLANT AFR department came into existence in Madukkarai plant in 2005 only. At present it has 10-15 waste streams. it plays a vital role in Madukkarai plant because at present this plant of ACC is facing a major problem of Clinker cost up gradation due to fuel (coal) usage. Hence in order to reduce the cost up gradation the ,management has decided to make Madukkarai plant a grinding plant instead of integrated plant but Trade Union rejected this idea as many peephole will become unemployed as a result of this decision. So in order to make a last attempt to save clinker production sector in Madukkarai plant AFR Department came into existence.

Thus, ACC (with coordination of its AFR department) is going a long way in promoting co-processing as an environmentally sustainable solution for the management of hazardous and non hazardous wastes from the industries.

119 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

PROCUREMENT DEPARTMENT
ACCs countrywide spread of cement plants consumes a wide spectrum of inputs about 130,000 different items ranging from coal, gypsum, slag, packaging bags, refractory products, steel, grinding media, lubricants, electrodes, cables, bearings, and conveyor belts, spares of various mechanical, electrical and mining equipment, and explosives and instrumentation. Thus a team of professionals at Corporate, Region 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.

PROCUREMENT ORGANIZATION The materials management and purchase processes were reorganized in 2006 as the companys new Procurement function. The function underwent further change after implementation of an SAP based Enterprise Resource Planning (ERP) system. The procurement section of ACC comprises of a Central Procurement Team at the plant level. It simply means that each plant of ACC has a separate centralized procurement department which is linked to a Central Procurement team at the corporate office.

ORGANIZATION STRUCTURE The structure of procurement department of ACC is as follows:

PURCHASE MANAGER

ASST. PURCHASE MANAGER

CLERK I Receiving Requisitions

CLERK II Enquiry & Quotations

CLERK III Order Processing & Delivery made

120 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

POLICY OF PROCUREMENT DEPARTMENT To integrate the requirements of all department of the organization in order to take the advantages of economy of scale wherever possible and to also avoid duplications of purchase resulting in wastes and obsolescence. DEPARTMENTAL FUNCTIONS Central Procurement team of ACC mainly deals with procurement of major inputs for the operation of cement plants. The basic functions of procurement department are as follows: Receiving purchase requisition

Inviting quotations and tender

Selecting the supplier

Placing the purchase order

Receiving of materials

Inspection of materials

Checking the invoice and making payment

All these functions are carried out by dividing the Central Procurement Department into the following sub-sections: Raw materials This section mainly deals with procurement of raw materials as per requisition of each section of production department.

121 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Energy, Fuels and Gases This section deals with procurement of diesel, oil ,gases etc. required for smooth functioning of machinery and other mechanical section of the company. Maintenance spares This section deals with procurement of spare parts etc. required by maintenance section for repairing purposes. Wearing parts, Consumable materials This section deals with procurement of consumable materials etc. Administrative & office supplies This section deals with supplies of stationary items etc. for administrative and official purposes. Services This section mainly deals with providing services and assistance in functioning of other sections of the organization. Packing This section deals with the functioning of meeting the requisition of procurement department.

VENDOR MANAGEMENT The vendor base is more than 19000 suppliers across the country, comprising reputed manufacturers, usually the leading names of their particular industry segment who are technically and financially sound and have the intrinsic capacity to supply material of desired quality on time. Preference is given to applicants with ISO (Quality & Environmental) certification. About half of the registered vendors who represent about 10 per cent of total purchase volume have been individually assessed based on quality standards. The new vendor registration system incorporates details of environment performance, social responsibility initiatives and employment practices implemented by the vendor applicants, but these parameters have not been formally inducted for evaluation and selection. There are plans to widen the scope of the vendor registration and evaluation system to incorporate specific prequalification criteria relating to environment performance. Care is taken to ascertain that vendors and contractors, who operate within the companys premises, observe and conform to fair labour practices. The engagement of children and adolescent labour is not permitted. 122 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works ACC have detailed guidelines for vendor appraisal, registration, approval, rating and delisting. Periodical evaluation and assessment is recommended on a random basis.

GENERAL STORES DEPARTMENT


ACC has a well structured and effective stores department. The stores department in ACC is termed as General Stores that means in ACC a technique of Centralized Storage is practiced. In all plants of ACC centralized stores are there and this is basically because all of its plants are constructed in such a manner that all production takes place at one place/location only, including integrated plants also. The basic objective of General Stores Department is to receive the materials and storing the same in proper condition and issue of materials to the users. The operation and maintenance activities of the department are carried out by trained personnel who are competent enough to carry out these activities.

QUALITY POLICY OF GENERAL STORES DEPARTMENT The Quality Policy of General Stores Department is stated below: To receive and store materials under conditions such that no damage or loss takes place during storage

ORGANIZATION CHART OF STORES DEPARTMENT The General Stores Department is provided with adequate experienced and competent personnel for carrying out the activities of department. The Organization Chart of Department is shown below:

HEAD OF THE DEPARTMENT

ASST. STORE KEEPER

CLERK Sr.CLERK/CLERK INDENTING RECEIPTS 123 SMBS, Mahatma Gandhi University, Kottayam

TALLY CHEKER/CLERK-WISE

ACC Limited Madukkarai Cement Works

DEPARTMENTAL FUNCTIONS The main function of General Stores Department is to receive stores and spare items, verification and storage of the same under conditions such that no damage or low takes place. The functions of Stores Department is as follows

INSPECTION

INSURANCE-- CLAIM

STORAGE

ISSUE

RECORD--KEEPING

CONTROL

VERIFICATION

CO-ORDINATION 124 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works a) Receipt of Materials All the items coming inside the factory are entered at the main gate by the security department and also in the inward register of time office. Both the sections put their seal on the delivery document as a conformance of entry of material in their record. The receipt clerk verifies the delivery documents against entries at the main gate and Time Office and also the order copy against which the material is received. He checks the outward condition of the packages and their quantity/weight and put suitable remarks on the delivery document, while acknowledging the receipt (GAR) is prepared in SAP system for every receipt and kept the same in the pigeon-hole for inspection by the indenter. b) Inspection The material received is inspected by the indenting department against the purchase order specification i.e. the inspection details include acceptance/rejection and reason for rejection which are incorporated in the GAR by the inspecting authority. In case of acceptance the tags are provided to the materials and then they are placed at the designated areas and the GAR is forwarded to Accounts Department for payment clearance. In case of rejection the material is shifted to a separately marked area called Rejected Cell. The copy of GAR of rejected material is forwarded to Purchase Deptt. for necessary action. Stores Deptt. initiate actions with the supplier for replacement/rework keeper. c) Insurance Claim / MODVAT Necessary insurance claim is made with transporter/insurance company towards the shortages/damages/loss of material received against the delivery documents. The items which attract excise duty, the central excise document received along with the delivery document, are forwarded to the Accounts Department to avail Modvat credit benefit. d) Storage General Stores Department provided with adequate facilities for proper and safe storing of items. The storage facilities include: Separate rooms/almirahs/bins for storing diff. types of items. Separate oil godown for storing oils.

125 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

Separate place for storing electric motor and panels. Open Yard for storing heavy casting and steel materials.

The bins are provided with identification nos. to facilitate easy retrieval of materials. For protection of materials in stores following safety measures are taken. Smoking is prohibited in the stores premises. Naked light fittings are prohibited inside the oil godown. Acetylene gas cylinders are always kept in upright position. Adequate fire extinguishers are provided inside the stores premises. Acetylene gas, oil drums, rubber items are kept a distant places from each other. General stores personnel are also given training on first aid and fire fighting.

e) Issue All the materials received, stocked and issued by stores deptt. with correct material specification and correct quantity in terms of no. and weight against proper requisition. All critical items are marked only for specific equipment and issues of these items are done only for specific equipment. f) Record Keeping Stores department also deals with the process of generating and maintaining records for proper maintenance and control over inventory and for the purpose of future verification. General stores department of ACC and its plants use to maintain records of inventory in a systematic and planned manner with the help of SAP system.

126 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

Following records are maintained by stores department. Sl. Description of record No. 1. 2. 3. 4. 5. 6. 7. Record for stock of HSD oil Record for retail issue of HSD oil For Gas cylinder Record for item kept under safe custody Item sent for repairs, reconditioning etc. Record for outgoing item Record for items rejected/excess supply returned to supplier Record for Modvat on receipt items. Record for scrap sale Record of training/Internal Audit Reports Identification No. Minimum preservation period 1 year 1 year 1 year 1 year 1 year 1 year 1 year

MKCW/GS/QR/01 MKCW/GS/QR/02 MKCW/GS/QR/03 MKCW/GS/QR/04 MKCW/GS/QR/05 MKCW/GS/QR/06 MKCW/GS/QR/07

8. 9. 10.

MKCW/GS/QR/08 MKCW/GS/QR/09 MKCW/GS/QR/10

1 year 1 year 1 year

g) Control Stores Department is mainly engaged in receiving and issuing process. The other function of stores department is controlling of inventory. Controlling means keeping a vigil on the discrepancies, abnormal consumptions, accumulation of stocks, etc. and enforcing control measures. It mainly deals with inventory control or inventory management. The following are some of the techniques used by General Stores department for inventory control.

Perpetual Inventory System Perpetual inventory system is the continuous physical stock taking of the stores items in order to ensure the accuracy of book stock in comparison with physical stock. 127 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

Perpetual Inventory (PI) is carried out by Perpetual Inventory clerk as per the guidance given by Internal control system (ICS). Perpetual duty is carried out by PI Clerk as per the programme covering A,B,C class items by the clerk working under Manager Finance. Perpetual Inventory checking showing the variations observed during PI checking shall be recorded and actions will be initiated for correcting the same. Visual Display Board System General Stores have a Visual Display Board which displays all sorts of details regarding inventory managed there. It provides a visual display of the details of the inventory stored in the stores, issued and received etc. It provide a tabular list and graphical view of materials, lubricants etc. stored there. A B C analysis It is one of the best and popular techniques of inventory control. Under ABC analysis all materials except raw-materials and finished goods) are classified into three categories A, B and C according to value.

Category-A includes high value materials (costlier materials) Category-B includes medium or moderate value of materials (less costly materials) Category-C includes lower value materials (least costly materials) According to this techniques a greater or strict control is exercised over category A materials, a moderate control is exercised over category B materials and relatively lesser degree of control over category C materials. X Y Z analysis system Under this technique raw materials and finished goods are classified into three categories X,Y and Z on the basis of rate of consumption of raw materials and finished goods. Stores department carry out this analysis with the help and under supervision of maintenance department(Civil Cell) and Quality control department. 128 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Category X includes highly consumable materials. Hence these materials should be always in stock.

Category Y includes moderately consumable materials. Hence moderate level of control is required. Category Z includes less consumable materials. Hence less investment is required for this. It should be in stock as per requirement only. Double Bin System Stores department also have a double bin system for adequate inventory management. Hence it helps to control inventory adequately and to avoid overstocking and under locking situation.

h) Verification Stores department also deals with verification process. Under this the in charge of stores department along with storekeeper conducts physical verification of inventories in stores. It focuses on verification of bin card balances with physical quantities in bin. This help to deduct the shortages and also help to analyze the variation in physical stock and recorded stock. Stores department hence use to carry out Perpetual Inventory System which helps to conduct continuous verification of inventories in stores. Also stores department undergoes a detailed verification process on a monthly basis.

i) Co-ordination and co-operation Stores department functions in co-operation and co-ordination with procurement department, Quality Control Department and Civil Cell of Maintenance Department. Quality control department and Maintenance Department helps to carry out store keeping of raw materials and finished goods to stores department. Hence with the co-ordination and help of these departments, General stores of ACC functions in an efficient and effective manner.

129 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

ENVIRONMENT DEPARTMENT
ACC has been a trendsetter in the industry in respect of its environment protection practices. There is evidence to show that quarry rehabilitation, tree plantation, afforestation, water management, pollution control and utilization of wastes were practiced many decades ago. The company installed pollution control equipment in its cement plants more than forty years ago. Today each of ACC plants has state-of-the art pollution control systems designed by the in-house pollution control equipment design team. These systems are capable of keeping emissions well below the statutory levels. All plants of ACC conform to ISO 14001 certification. The Environment and Energy Conservation Cell was formed in September 2007, in all plants of ACC including Madukkarai plant, with a clear road map to pursue emission and energy reduction. Earlier these functions were organized differently. A large group of 70 environment engineers (including 11 environment engineers of Madukkarai plant) are deployed across the company with separate teams for environment related R&D, design and installation of equipment at the central level and separate engineers overseeing maintenance and operation at each plant. ORGANIZATION CHART OF ENVIRONMENT DEPARTMENT The organization chart of environment department are as follows-DIRECTOR PLANT (HEAD)

HEAD PLANT OPERATION

MANAGER ENVIRONMENT

JUNIOR EXECUTIVE 130 (MECHANICAL) SMBS, Mahatma Gandhi University, Kottayam

SENIOR EXECUTIVE (E& I)

ACC Limited Madukkarai Cement Works

ENVIRONMENT POLICY 1. Prevent pollution and minimize fugitive emission from all activities of Madukkarai Cement Works. 2. Comply with all relevant legal and regulatory requirements. 3. Conserve key resources such as water and energy. 4. Minimize generation of solid waste and take appropriate action for reuse. 5. Continual improvement in Environmental Performance at Madukkarai Cement Works. DEPARTMENTAL FUNCTIONS The main function or basic objectives of Environment Department are: Conservation of mineral and energy resources Stricter environment management and promoting greener technologies Upgrading pollution control technologies Usage of alternative fuels and raw-materials Water Management

These are some of major functions of Environment Department of ACC cements. They are discussed in details as follows: Energy Resources With rampant energy shortage in India, ACC is engaged in making regular modifications in process and technology to adapt to best practices in energy savings on the usage of conventional energy and fuel sources. This is mainly because, cement manufacture is an energy intensive process consuming both electrical and thermal energies. The company introduced Captive Power Plants and Wind Power Plants programme, basically to generate energy from natural sources i.e. wind etc. This effort of ACC helped it economically and also helped the society to seek energy from viable renewable and non-fossil fuel sources. The company has 225 MW of Captive Power Generating capacity of which 184 MW is thermal while the remaining is mainly liquid fuel based. ACC has constituted a renewable energy division within its Power Management Group. The first major initiative was to establish a state of the art wind power plant/project in Udayathur in Tirunelveli Dist., Tamil Nadu. 131 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works At present ACC have two main wind farms in Tamil Nadu and Rajasthan. The wind power project in Tamil Nadu provide an environmentally sustainable energy input to ACCs Madukkarai plant. The company is planning to set up a wind farm in Maharashtra by the end of this year. Clean Development Mechanism The company mainly aims at Clean Development Mechanism. As per this mechanism the company aims to pursue other sources of non-conventional green energy such as wind power, waste heat recovery, solar PV energy, solar thermal energy and mini hydrel power etc. Waste Heat Recovery In dry process cement plants nearly 40 percent of total heat input is rejected as waste heat from exit gases of pre-heaters and grate coolers. In most plants the waste heat is utilized for drying raw material or pre-heating air required for coal combustion. But even after covering these applications, there is still some heat available which can be utilized for electrical power generation. Tapping this energy offers much potential. Waste Heat Recovery Systems are known to be working successfully in cement plants in some countries. The power generated in this way can be enough to operate the kiln section on a sustained basis. ACC is exploring power generation based on waste heat recovery from cement kiln and cooler gases.

Atmospheric Emissions Control Sophisticated pollution control equipment and devices and a well equipped environmental laboratory provided at each plant of ACC help in the monitoring and measurement of environmental parameters. All plants of ACC are certified with EMS (Environmental Management Systems) ISO 14001:2004. International audits, surveillance audits and reviews are carried out regularly. a) Baseline Monitoring ACC is making substantial investments to monitor and measure the environmental performance of its plants in terms of emissions termed as Baseline Monitoring. The result of this monitoring provides emission values using conventional fuel and act as reference for evaluating the incremental change in emission from the usage of alternative fuels. 132 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

Emission parameters that were measured in this exercise are dust, SO2, Hel, NH3, H2O, CO, O2, Benzene, Mercury, Heavy Metals(Sb,As etc.) Dioxins / Furans (PCDD/PCDF) and total organic compounds. b) Continuous Emission Monitoring Systems Continuous Emission Monitoring Systems (CEMS) are being installed at all our plants in a phased manner to facilitate continuous monitoring of emissions and ensure environment compliance within the standards. These systems would also allow online monitoring of the associated emissions from co-processing wastes and indicate whether each type of industrial waste used is viable and environment friendly material.

c) Monthly CO2 Reporting Cement industry is among the major emitters of greenhouse gases. Thus, ACC has started reporting the CO2 emissions from clinker and cement production activities. Gross CO2 emissions and Net CO2 emissions is calculated for the company as a whole using data provided by each individual cement plant. The calculation principles and guidelines are based on the cement CO2 protocol developed by the cement sustainability initiatives (CSI) of the World Business Council for sustainable Development (WBCSD). Absolute Gross CO2 emissions are also calculated for the entire company. Atmospheric Emissions Average specific concentration (g/tonne of cementations material) PARAMETER NOx SO2 NH3 DUST ORGANICS MERCURY CHROMIUM DIOXINS/FURANS 2011 929.51 105.06 1.50 95.12 6.53 0.02 0.02 0.003-0.015

133 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

Dust Control ACC has installed dust emission control equipments. The company introduced its own facility for retrofitting and upgradation of dust emission control equipments in 1993 at its Thane complex in collaboration with Hamon Research Cottrell, USA. This included a full fledged fluid dynamics laboratory, the first in the Indian cement industry, for carrying out physical gas flow model studies for different equipment. Over the years, most of the equipment were continuously upgraded to meet local statutory emission norms. Apart from upgrading and installing pollution control equipment for ACC, the division also took up consultancy, supply and erection jobs for clients from various industries in India and overseas. In fact ACC gained significant recognition for excellent services rendered.

The following are some of the dust control equipments: Gas conditioning tower and ESP The conditioning tower is used to reduce the temperature and to increase the moisture level of the dusty exhaust fas from the kil, before it is passed through th bag house and ESPs. It is called a conditioning tower because it conditions the hot gas, thus making it more suitable for the ESP and bag house dust from it. The Electrostatic Precipitators are used in cement plants particularly for removal of dust from the exit gases of cement kilns and from the exhaust air discharged by dryers, combined grinding and drying plants, finishing mills and raw mills through water injection. Through ESPs, the dust-laden gas is made to flow through a chamber usually horizontally, during which it passes through one or more high voltage electric fields formed by alternate discharge electrodes and palate type collecting electrodes. By the action of electric field, the dust particles, which have become electrically charged by negative gas ions which are formed at the discharge electrodes and attach themselves to the particles, fly to the collecting electrodes and are deposited there. The dust is dislodged from these electrodes by rapping and thus falls into the receiving hopper at the base of the precipitator casing. Road sweeper cum industrial vaccum cleaner ACC was the first to introduce this road sweeper equipment .This equipment helps to accumulate or suck up the dust of the cement plants of ACC.

134 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Bag House The term Bag House is applied to large filters containing a number of tubular bags mounted in a usually rectangular casing. The dust laden air is drawn through them by suction. The Bag House is used to remove dusty particles from discharge of different equipment such as cement mill, coal mill and kiln. In a Bag House system discharge gas containing dusty particles is passed through a series of bags made of strong fabrics

Greening ACC has won several prizes and certificates of merit for its programmes involving greening , afforestation, reclamation and rehabilitation, top soil management, noise abatement and other visible measures such as tree plantation and water management. ACC has proudly showcased its success with reclamation of lands abandoned as mines and quarries. Some of these desolate tracts have been transformed into green parks, orchards, forests and even a bird sanctuary with a picturesque lake. Some of plant of ACC have developed as much as 40% area for green belts as compared to the statutory requirement of 30 per cent. Each cement plant has its own success story of tree plantation etc. Kymore has undertaken greening of the desolate Kaimur Hills-an ambitious project where 1,50,000 trees are already planted with a survival rate of more than 95 per cent. Elsewhere volunteers at Kymore have planted a record 1,00,000 saplings in a single day. At Gaggle in Himachal Pradesh, 1.1 million plants and saplings were planted in waste lands. Chaibasa distributes saplings to local people free of cost on Independence Day. 1,50,000 trees have been planted over an area of 24.9 hectares. In Chanda around 5000 trees are planted every year. Fruit orchards and plantations flourish in Jamul, Katni and Gagal. The total plantation undertaken across ACC is more than 3.3 million nos. of trees, with an average survival rate of 85% and spread over an area of 10,000 acres in mines, factories and residential townships.

135 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Biodiversity Among the most satisfying results of the companys horticulture, rehabilitation, greening and afforestation activities is the opportunity it provides to enable natural life to flourish. This is most evident in the many water bodies created in abandoned mines or the dense forests and orchards grown on arid and barren lands where migratory birds, insects and plants thrive. Wild life conservation plans have been made and submitted for two of ACCs locations in the states of Jharkhand and Orissa. These include suggestions in respect of the protection of flora and fauna along with the creation of some basic infrastructure for water-harvesting, support for anti-poaching measures and livelihood generation assistance for tribals in forest areas. Water Management ACCs water conservation efforts have been noteworthy, with important contributions from nearly all our plants. The company maintains a norm of Zero Water Discharge at all cement units. Water is used in the plants as industrial cooling and the entire water is recycled through cooling towers, water ponds and tanks. Ground water encountered during mining operations at our mines together with any other rain or surface water, is pumped out of the mines to keep it dry for operation. ACC cement plants have converted old abandoned mines into huge reservoirs by collecting rain water from different catchments around mines. The collected water is then channelled into the abandoned mines forming water storage areas. The capacity of each such reservoir is approximately 6 to 10 lakh cubic metres. The reservoir water is further treated in the plant and colony before it is used. Old worked out mines have thus been converted into water reservoirs at Kymore, Jamul, Chaibasa and Wadi plants. These reservoirs meet the water requirement of our plants and help improve ground water tables in surrounding areas. Rain water harvested at Lakheri mine is utilized for irrigation of surrounding areas. As a result of these initiatives, we now have several examples of outstanding achievements in water harvesting and in the creation of reservoirs in abandoned mines and quarries. Some of our plants have become self-reliant with respect to their water requirements for use in the plant, mines and colony. So these are the structure and main functions of Environment Development of ACC and ACC Madukkarai Plant.

136 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

CORPORATE SOCIAL RESPONSIBILITY DEPARTMENT (CSR)


Today ACC define Corporate Social Responsibility as the way a company balances its economic, social and environmental objectives while addressing stakeholder expectations and enhancing shareholder value. 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. ACC demonstrates the practices of being a good corporate citizen and has a clearly stated policy in respect of its corporate social responsibility ACC was amongst the earliest companies in the country to have an independent department dedicated to rural development and village welfare activities, as part of the companys village welfare scheme launched in 1952. The Rural Development Department had a team of professionals comprising social scientists, agriculturists, civil engineers, horticulturists, medical officers and social workers. The Company was forced to disband this team two decades ago on account of acute financial stringency. However the spirit of community development was kept alive and the company conducted its CSR agenda with the function entrusted as an additional responsibility to Plant Heads and other executives. The system worked satisfactorily as it helped integrate community development closely with the Companys main business. A new CSR Department was introduced in ACC in 2006. The Companys Corporate Communications Department has been expanded to include Corporate Social Responsibility as an independent function. We have put in place a new organizational structure for CSR and inducted experience and trained professionals to coordinate this work at regional and plant levels while retaining the spirit of volunteering and participation from employees of mainstream functions.

137 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works ORGANIZATION CHART The CSR department consist of well skilled and competent members enjoying adequate rights and power. The following is the structure of CSR department CSR--COMMITTE

CSRHEAD CORPORATE CELL

DEPUTY HEAD

PLANT HEADS

REGIONAL HEADS REGIONAL CSR COORDINATOR

PLANT CSR COORDINATOR

DEPARTMENTAL FUNCTION CSR department performs a number of functions for the development of society and its members. The main focus area of CSR department is under mentioned Community Development Ladies Club in ACC Health Care Facility Awareness Programmes

COMMUNITY DEVELOPMENT PROGRAMME The rural community around many of ACC plants comprises the weakest sections of rural India with no access to basic amenities. Tribal people also form part of the neighborhood. ACC have a long history of undertaking a range of activities meant to raise the quality of life and living conditions of the under-privileged and backward classes in the vicinity of 138 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works their plants and mines. At most of ACCs plants they extend educational and medical facilities for the local populace. With a new team of dedicated CSR coordinators being posted at all their major plants, they are strengthening and streamlining their agenda for community development and engagement at each of their locations. The companys new approach is more holistic and comprises the following typical steps: A. Rapid Assessment including stakeholder analysis B. Needs Assessment - study and report C. Identifying local partners & NGOs for engagement D. Training and coaching in different areas i. Self-development ii. Quality of living - hygiene iii. Health iv. Capacity building - participation in village institutions, livelihood generation, enhancing trade skills E. Linkages identifying and formalizing backward and forward linkages in production, employment, fund mobilization and marketing. F. Making an Action Plan for target communities G. Implementation of Action Plan. H. Monitoring and evaluation

The new approach brings a sharp focus on capacity building and livelihood generation, particularly for the youth and women. The main objective of this programme is to make the community self-reliant. LADIES CLUB Every plant in ACC has traditionally had an informal association of ladies predominantly for their social and recreational activities. These Clubs have been contributing by way of organized voluntary work in the areas of school activities, literacy drives, health camps, blood donation drives, donations, relief measures as well as empowerment programmes for women. The Ladies Clubs participate in tree plantation campaigns and promote cultural activities. The programmes supported by these Ladies Club focus on hygiene, womens empowerment through capacity building and livelihood generation, education and 139 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works training through a Learn & Earn model. Ladies Club members display a strong propensity for volunteerism in these specific areas and also demonstrate commitment and competence. At Jamul, the Jamul Ladies Club has successfully organized women of the Kherda village to make gloves needed by workers in the packing section of ACCs plant. Cloth and thread is supplied free of charge to each woman and the gloves are purchased from them at an agreed rate. Each woman is able to make an average of about 10 pairs of gloves a day. The goal for the Jamul Ladies Club is how to make this a self-financing enterprise. At Chaibasa, the Ladies Club is operating a Tailoring school for local women since 1992. The school conducts courses in tailoring, cutting and embroidery of six month duration. HEALTH CARE FACILLITY Each of ACCs townships has well-equipped health care centres that have mini-hospitals with qualified medical staff, the latest in basic diagnostic equipment and facilities including ambulance and referrals with reputed hospitals for specialized treatment. In several locations, ACC share these facilities with members of the local community. At other places, the company provides mobile health services to adjoining villages and conducts regular diagnostic health camps focused on general medicine as well as special ailments and diseases such as Mother child health care, Cancer detection, Hepatitis, Tuberculosis, Eye check-up, and Diabetes.

AWARENESS PROGRAMMES (ON HIV/AIDS) ACC volunteered to lend a hand in the national effort to combat the HIV/AIDS which is recognized as being one of the countrys major public health issues. The company first announced a Workplace policy for HIV/AIDS that guarantees the fundamental human rights of employees affected by this virus, while enunciating concern for their treatment. The policy includes awareness programmes for employees, their families and the community around ACC plants especially the high-risk groups among them. The Company has set up an Anti Retroviral Treatment (ART) Centre for HIV/AIDS treatment in Wadi in Karnataka, a State where the virus is highly prevalent. The Wadi ART Centre opened in March 2007. It is equipped with all basic physical infrastructure, medical equipment, laboratory facilities and trained personnel. It has a complement of trained medical and Para-medical staff. The centre provides voluntary counseling and testing services and caters to the general public living in Wadi and surrounding districts. It conforms to the guidelines stipulated by the National AIDS Control Organization (NACO) of Government of India. Supply of vital antiretroviral drugs is arranged free of 140 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works cost by NACO. The Centre is the first outside the Government sector to be included in the list of NACOs approved ART Centres in the country. An independent Trust called ACC Ayushmaan Trust has been created to enable the Wadi ART center to function effectively. The Trustees include senior executives of the company and an experienced medical person from the local district. Awareness Education --Prevention is better than cure. Accordingly ACC conducted general Health camps and awareness programmes targeted at high-risk groups in the community as well as their employees, their families and adolescent children. Condom vending facilities have been installed at the Wadi ART centre and other places. ACC is the first company in the private sector to set up such treatment centers and among only a handful of companies in India to have a formal workplace policy for HIV/AIDS. So these are some of the functions of CSR department of ACC.

MAINTAINENCE DEPARTMENT
ACC has a strong and well structured maintenance team. All plants of ACC have a separate maintenance department which provides all types of maintenance services i.e. it act as a service department for the production department. From the study conducted in Madukkarai plant of ACC the structure and functioning of maintenance department became clear to some extent. The maintenance department in Madukkarai plant mainly deals with preventive and corrective form of maintenance on a regular basis. It also deals either predictive form of maintenance under certain circumstances.

ORGANIZATION CHART The maintenance department is provided with adequate experienced and competent personnel for carrying out the activities of department. The organization chart of maintenance department is shown below:

141 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

CHIEF MANAGER MECHANNICAL

HEAD PLANNER

CIVIL PLANNER

MECHANICAL PLANNER

E&I PLANNER

PLANT MAINTENANCE EXECUTION

From the above structure of maintenance department it became clear that along with Plant Execution cell it has the following cells (section) also: Civil cell Mechanical cell Electrical and instrumental cell

It can be studied one by one in the following manner-CIVIL CELL This section of maintenance department mainly deals with the repair and renovation activities both inside and outside plant. It mainly deals with the activities of construction, masonry etc, of plant and outside plant (i.e. in General office and Quarters).

142 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

DEPARTMENTAL FUNCTION Civil section of maintenance department is engaged in the following functions or activities: It performs the repair and renovation activities both inside and outside the plant i.e. in quarters also. It provides maintenance services in the plant like preventing or correcting the leakage problems, water proofing etc. It carries out the construction and masonry activities both inside and outside the plant. It carries out the general cleaning activities inside and outside the plant. It helps the quality control department in stock taking of raw materials and finished products. It carries out a preventive activity of annual shut down along with coordination of other sections of maintenance department and also other departments.

MECHANICAL CELL This section of maintenance department mainly deals with the process of preventive and corrective maintenance of mechanical section of the plant .The periodic and regular maintenance procedure of machines and equipments both inside and outside plant is dealt by this section of maintenance department.

FUNCTION 1. MECHANICAL PLANNER: Planning for major shut down 9kiln department) Planning for scheduled replacement (any department) Spares planning Critical spares planning Monthly scheduled planningmills/crusher/cell rows/filtration SAP plant maintenance order i. Bill of material preparation ii. Material creation/ codification Report preparation

143 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works 2. CONDITION BASED MONITOR: Deals with predictive measures like- vibration anticipation etc. Regular maintenance of kiln department (in a period of 6 months) and other areas also. Mill inspection ( internal) Gear box inspection Any thicknesses measurement Report preparation

3. TOTAL LUBRICANT MANAGER Take care of no stoppage based on lubrication. Oil/grease supply to concerned departments. Oil consumption monitoring Oil/lubricant analysis Any leakages to be arrested. Lubricant condition report Report preparation

ELECTRICAL & INSTRUMENTAL CELL This section of maintenance department mainly deals with preventive and corrective maintenance program along with predictive maintenance programme of electrical and instrumental structure both inside and outside the plant.

DEPARTMENTAL FUNCTION The following are the main functions of Electrical & Instrumentation section of maintenance department: Formulation of planning related to electrical and instrumentation issues. Planning for replacement of electrical arrangements both inside and outside the plant Deals with the maintenance of instruments utilized in the process of manufacturing Planning of preventive measures to avoid sudden breakdowns etc. in production process due to electrical or instrumental faults. Inspection of electrical and instrumental arrangements of the organization. Report preparation.

144 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

PLANT MAINTENANCE EXECUTION CELL This section of maintenance department mainly deals with the maintenance activities of plant i.e. inside the plant. It is engaged in the process of maintenance of plant on a regular basis. The other sections of maintenance department like civil etc. mainly deal with the maintenance of certain specific areas both inside and outside the plant. But this section deals with overall maintenance of plan i.e. preventive and corrective measures required for smooth functioning of plant only.

DEPARTMENTAL FUNCTION Plant maintenance execution section of maintenance department mainly deals with the following functions: Reduction in Mean Time to Repair (MTTR). o Ensuring the availability of spares o Ensuring the availability of manpower required o Ensuring the availability of skill level required. Achieving Net Availability Index percentage (NAI %). Deals with the process of local modification. o Deals with power modification i.e. power reduction etc. as per requirements. o Cost reduction. o Ensuring Reliability and adequacy of all sources required for smooth production process. Assembling the spare parts required. Preventive and corrective jobs to be carried out.

PM Execution cell is mainly divided into the following sub groups 1. Preventive PM Execution cell 2. Corrective PM Execution cell

PREVENTIVE CELL This cell mainly deals with the process of providing maintenance in advance i.e. before occurring actual break down of machinery or instruments etc. 145 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

It follows the following procedure Task list

Plan

Orders

Reporting Task list It is a list of task which is to be performed in advance. It is usually prepared on the basis of ratio of Preventive Maintenance Routine % to Plant Attainment % (PMR%/PA%). Planning Planning is a process of determination of future course of action. In this stage the way in which the preventive task to be performed is prepared. Orders In this stage the orders of maintenance were received by various sections of maintenance team and they have to execute those orders as per the task list and plan. Reporting It is the final stage in this each member should prepare a report showing the list of task performed by each member of each maintenance section. It help to compare the task actual performed and task planned.

CORRECTIVE CELL It is a process of providing maintenance services after the actual breakdown or block occurs. It follows the following procedures: 146 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Notification Orders Received Corrective Job Reporting

Notification Under this stage when the breakdown occurs or when it is predictive then a notification is issued by the concerned department facing the problem informing the maintenance department. Orders received Under this the concerned section of maintenance cell gets orders mentioning the task to be performed immediately. Corrective job Under this the section receiving the order start the execution of corrective steps required to solve the problem. Reporting Under this final stage the task performed by the concerned section is reported in order to compare the actual task to be performed the actual task completed.

Hence these are the structural form and mode of functioning of Maintenance department of ACC and its plants.

147 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

SYSTEM DEPARTMENT
ACC was among the first Indian companies to adopt automation of information technology. They started computerizing their systems as early as 1968 - a commitment to progress through the harnessing of relevant available technologies, a practice that continues even today. They have traveled a long way from their early days when they were using simple keypunching machines. Significant improvements have been made in application systems and infrastructure since then - from Batch processing to on-line systems, from IBM 1401 and Data General system to the latest Linux/UNIX and Windows 2003 based machines. They have made timely transitions determined by available technologies and business requirements. ORGANIZTION CHART The following chart represents the structure of system department of ACC---

SYSTEM MANAGER

ASST. MANAGER

SYSTEM PALNNER

SUB PLANNER FICO

SUBPLANNER MM SUBPLANNER SD

SUBPLANNER PP SUB PLANNER HR

SUBPLANNER PM

148 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

IT INFRASTRUCTURE IT in ACC is well placed to master future expansions of their core business. IT Infrastructure of ACC is well designed with adequate automation systems. IT infrastructure of ACC includes the following ERP based solutions Intranet Portal System Networking System Security System

ERP based solutions In February 2007 the company made a quantum jump from in-house developed systems using Oracle 9i and Developer 6i to an ERP (SAP) based solution. This decision was based solely on their strategic objectives and the business benefits that they expect to derive from implementing such a solution. With this move they also aligned people, business processes and technologies across the country. Hence at present the system department of ACC and its plant is using ERP based packages. Enterprise Resource Planning (ERP) is an integrated computer based system used to manage internal and external resources including tangible assets, financial resources, materials and human resources. SAP-ERP package is used in ACC. The SAP ERP application is an integrated enterprise resource planning (ERP) software manufactured by SAP AG that targets business software requirements of midsize and large organizations in all industries and sectors. It allows for open communication within and between all company functions.

149 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

Functional areas of SAP ERP

FUNCTIONAL AREAS

SAP FICO (Finance & Cost Controlling)

SAP SD (Sales & Distribution)

SAP HR (Human Resource)

SAP PP (Production Planning)

SAP MM (Material Management)

SAP PM (Plant Maintenance)

150 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Intranet Portal System The Company has an Intranet Portal called Accelerate which is dedicated to employees. The portals content is based on Personal information relating to Human Resource matters, Performance Management, as well as other information of use to employees such as the latest news on company affairs, developments on sustainable development, house magazines and newsletters. Thus the mantra of system department for this Portal is--Know Your College This Intranet Portal basically helps the employees to communicate with their employer as well as with their colleges. It helps the employees to build up a strong communication between themselves and also helps to know about the company and its policies. It provides a platform to the employees were they can interact with each other and also can update their knowledge and can solve their queries related to company and its policies.

Networking System Being a large organization with a countrywide network of manufacturing, marketing and R&D centers, ACC have invested in the creation of a comprehensive infrastructure that allows free flow of information across the organization. This enables almost instant communication between all levels in the organization. A hybrid WAN network connects each of their 275 plants locations. A judicious mix of VSAT and VPN links ensure adequate connectivity between these locations. Each manufacturing location has a well designed LAN to meet its needs.

Security System All departments of ACC has their own separate SAP ERP solution. A department can access only its SAP package system i.e. it cant access the SAP system of any other department for e.g.- HR department can not access the Finance departments SAP package and vice versa. Each departments SAP system has been designed in such a way that no other department of the organization can have an access on it. Only the Production Planning section and the Plant Maintenance section can have a access on the Material Managements SAP ERP system .

151 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

The following problems have been noted after studying the Systems and IT department.

Still lack of system integration after a level. Though inventory management module is integrated well with all the other modules like financial system, thus reducing the redundancy. But still there is need of paper work and manual intervention when reordering is required. System cannot be configured to reorder automatically, even for the fast moving raw material.

Legacy Network Support. Backbone network used by ACC is still the same, which they used in 1993. They havent upgraded the network support from then, which has started creating problems for them already. As MIS of the company is improving day-by-day including more and more functionalities, the network has already become very slow.

Lack of training to managers to effectively use the decision support functionalities of system. This is another problem that we felt at the company. IT department is basically making the improvements in the system continuously with new added functionalities, but there is lack of training to managers to effectively use these functions in way that can support them to make better decisions. For example, on an average, a manager uses only 10-15 types of reports out of more than 200 types of reports available.

152 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

MARKETING DEPARTMENT
ACCs brand name is synonymous with cement and enjoys a high level of equity in the Indian market. ACCs brand name is maintained and developed by a well designed marketing team. A range of ACCs cement s and blended cements is marketed through a network of 19 Sales Units, 54 Area Offices, and 194 warehouses. This is backed by a countrywide network of over 9000 dealer who, in turn, are assisted by their sub-dealers. ACCs marketing; sales and distribution processes are industry standards. Although we take immense pride in having supplied some of Indias most admired projects, ACC id essentially a peoples brand of cement with more than 80 per cent of sales, made thorough an extensive dealer network that covers every state in India. Its customer base represents the masses of India- individual homebuilders in small towns, rural and semiurban India. ACC cement enjoys an image of assuring consistency and of high quality backed by in- house research and expertise. ACC manufactures the various kinds of Portland Cement for general construction and special applications. In addition to this , ACC offers two value added products namely, Bulk Cement and Ready Mix Concrete.

POLICY

The following is the policy of marketing department of ACC on the basis of which they carry out their functions

Brand Building through Services

153 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works ORGANIZATION CHART Marketing department of ACC has a reserve of adequate and skilled sales person who helps to boost out the sales and demand of ACCs products. The following is the organization chart of marketing department of ACC showing the structure of its sales force-

VICE PRESIDENT (BUSINESS HEAD)

REGIONAL MANAGER (Eastern Region)

REGIONAL MANAGER (Northern Region) REGIONAL MANAGER (Western Region)

REGIONAL MANAGER (Southern Region)

BRANCH MANAGER

BRANCH MANAGER

BRANCH MANAGER

BRANCH MANAGER

SALES MANAGER

SALES MANAGER

SALES MANAGER

SALES MANAGER

SALES OFFICES

SALES OFFICES

SALES OFFICES

SALES OFFICES

Kolkata Asansol Dehradun Patna Bhunaeshwar Ranchi Raipur

Bangalore Cochin

New Delhi Chandigarh Lucknow Kanpur

Bhopal Hubli Mumbai Pune Sekendrabad Nagpur

154 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works MAJOR MARKETS The marketing team of ACC mainly concentrates on region wise marketing strategy. Under this the whole market of the company has been divided into five major regions--North, South, West, East and Central regions. The following table shows the major markets of ACC in each region along with the market share enjoyed in these regions MARKETS OF ACC REGIONS Western region Northern region Central region Southern region Eastern region MAJOR MARKETS Maharashtra Punjab Uttar Pradesh Karnataka West Bengal MAKET SHARE (%) 16.3 31.4 32.3 22.9 17.9

From the above table the major markets of ACC in different regions have become clear and also it become clear that central region (UP) is the strongest market of ACC enjoying highest share of market in this region compared to other regions.

155 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works MARKET SHARES Cement industries consists of a number of players. ACC is just one among those players. These players of cement industry differentiate from each other in different manners and hence they enjoy different level of status in market. The following table shows the market share enjoyed by different players in cement industry Cement Companies Grasim Industries Ltd. Ambuja Cements Ltd. ACC Ltd. Ultratech Cement Ltd. Century textiles& Industries India Cements Ltd. Birla Corporation Ltd. Madras Cements Ltd. Shree Cement Ltd. Dalmia Cement Ltd. Prism Cement Ltd. Market Share (%) 18.38 16.34 14.21 12.13 7.89 6.23 5.04 3.34 3.10 2.64 2.29

Thus from the above table it become clear that Grasim group enjoys the maximum number of shares in the market. Hence in terms of sales and marketing strategies Grasim industries is the leader( top in the market) but when the overall performances in cement industries is considered then Ambuja group is the market leader of cement industry.

SUPPLY CHAIN MANAGEMENT ACC is proud of its large supply chain management by an energetic sales force from an extensive spread of sales offices spanning India, a country- wide network of highly motivated channel partners comprising more than 9000 dedicated dealers complemented by a chain of retailers. They supply ACC cements by rail and road from ACCs cement plants supported by efficient authorized road transport contractors who assure express delivery. Warehouses in intermediary location ensure uninterrupted supply to remotely located customers. ACC Concrete has more than 40 Ready Mixed Concrete plants in the major cities of India which supply fresh concrete to their customers doorsteps through their own fleet of transit mixers. ACCs Bulk Cement terminal at Kalamboli, near Mumbai caters to the requirements of Mumbai and its environs, through its own dedicated fleet of bulkers and site storage facilities. The challenge before the companys supply chain is to ensure uninterrupted supply of high quality cement and concrete backed by efficient logistics and transportation. 156 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works The sales office at Cochin handles the logistics and transportation from Tamil Nadu and Karnataka. In Kerala ACC has 25 warehouses and 30 sub go downs. LOGISTICS ACC have strong and well build logistic team. All the transportation related matters are handled by this team. The freight charges are paid by the company itself to the dealers. The logistic department also manages the go down and stores. The main function of the logistics department is to reduce the logistic cost. The minimum quantity of per order is 1500KT (100 Packets/Nos.) There are two types of freight: Primary freight From plant to ware house Secondary freight From ware house to dealer

The ware house and transportation is managed by Carrying and Forwarding agents (CAF). In order to find the least cost in freight charges a software called OPTIMISER is used in the logistics department. An optimized list of freight charges to various ware houses in Kerala is listed in the table.

157 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works ADVERTISEMENT ACTIVITIES

ACC has two levels of advertisement team to manage and perform the advertisement activities. -National team -State level sales unit team The national team in cooperate office - Mumbai looks over the large scale advertisement activities, all India level. i.e., in television, radio, news paper and other mass media. The sales unit in states looks over the advertisement activities such as local outdoor advertisement, building bus shelters, wall printing, and local television channels and radio.

PAYMENT AND COLLECTION METHODS ACC adopts 100% e-payment methods in paying and receiving money in its business activities. RTG and Fund transfer are the two main methods adopted for financial transactions. ACC does not use demand draft or cheque for financial transactions. ACC has direct contact in financial transaction only with its Premium dealers and Authorized dealers.

MARKETING INTELLIGENCE ACC uses Retail Marketing Information System (RIMS) for its marketing activities. There is one marketing intelligence officer for every district to prepare and analyze the daily sales report.ACC is costly cement. Its well marketed because of its customer quality and brand image.

SALES PROMOTION ACC has adopted several sales promotion programs for its dealers. ACC Lakshya is one among them. Its a loyalty program for the premium dealers and authorized dealers. The dealers get points into their accounts as they purchase cement from ACC Limited. At the end the dealers can redeem points for bikes, laptops, handy cams etc. After a fixed period of time every dealer obtains some belts and thus they can add more points to their account. ACC is also providing several incentive schemes for dealers as they perform financial transactions towards ACC at the earliest. 158 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works SALES UNIT HIERARCHY The hierarchy of sales unit is illustrated below:

SALES HEAD
ACVERTISEMENT AND BRANDING INCHARGE

CSS INCHARGE

FINANCE INCHARGE

LOGISTICS INCHARGE

ADMIN INCHAREGE

Thus as shown in the figure every sales unit has a sales head and all the sales/marketing activities are performed under the sales head.

MARKETING MODEL ACC sells the cement in the dealership mode and rarely in consignment mode. ACC never sells products to the end user (Laye Buyer). The marketing model is illustrated below:

ACC LIMITED

WHOLESAL E DEALER

RETAIL DEALER

(SUB DEALER)*
END CUSTOMER

END CUSTOMER

* Three sub dealers [authorized dealers] Premium Dealer 159 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works From the figure the marketing model of AC limited is clear. To market the product ACC has a concept known as Authorized retailer ship concept. Under this concept ACC collects small deposit from various retailers and gave a membership in the ACC club. A retailer who is a member of the ACC club gets attached to a wholesaler. In this concept the retailer can buy ACC cement only from that wholesaler and the wholesaler will be connected to three authorized retailers only. The wholesaler will be known as premium dealer. The dealers who dont have any retailer under them and those have direct contact with ACC and have a membership in ACC club is known as Authorized dealers. SALES FORCE STRUCTURE In ACC every district will have one district officer (No. may depends upon the district), one customer service officer and a team of sales force known as PDF (Premium dealer sales force). The structure of ACC sales force is as shown below:

MANAGEING DIRETOR

DIRECTOR SALES

REGIONAL SALES HEAD

SALES HEAD
(SALES UNIT)

AREA INCHARGE - SALES

DISTRICT OFFICER

PDF (CONTRACT WORKERS)

160 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works CUSTOMERS ACC is essentially a peoples brand of cement and its customer base represent the masses of India- individual homebuilders in small towns, rural and semi-urban India. The customers of ACC can be broadly classified into the following sectors 1. Government sector 2. Industrial sector 3. Infrastructures sector 4. Engineers and other related professionalists 5. Individual home builders CUSTOMERS RELATIONS ACC is Indias largest manufacturer of cement. ACC Cement has an image of being dependable, consistent and of high quality backed by in-house research and expertise. The company is known to promote ethical and fair practices in its supply chain. The companys commercial terms, procedures are professional and transparent. ACC is popular with its customers and suppliers. Their marketing and sales practices envisage the promotion and encouragement of all dealers including small traders and retailers, particularly those in interior places. In addition, the company fosters a tremendous sense of belonging not only among employees, but also among its customers, dealers and associates. The important differentiator which helps ACC to compete and win over other brands is the phenomena of customer service. The level of customer services has been appreciably increased through the expansion of their sales network and sales force. The Regional Offices of ACC have Customer Services Cells manned by qualified Civil Engineers who interact either customers to assess their needs and problems, offer advice before and after sales including educating users and customers on correct usage of cement and concrete and good construction practices. ACC reaches out to its customers, home builders and engineers in the following ways

161 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works 1. Regular Interactions The company has a regular practice of interacting with customers and end-users as well as members of their distribution channels such as dealers, sub-dealers and retailers. Through these interactions they use to build relationships and seek to educate customers about cement, common complaints and pit-falls in usage and other aspects of construction. 2. Surveys Market surveys are organized at regular intervals to ascertain perceptions about ACCs brand image, marketing and distribution procedures, thier sales force, channel management and relationships with customers, dealers and influencers. A brand equity study carried out by a well-known market research firm of global repute indicated that ACC is the most preferred and recommended brand of cement in India. The brand stood way ahead of all other competitors in this comparative analysis. 3. Interactive Websites (www.acchelp.in) In the last few years, a host of new customer services were introduced to assist customers in selected cities and towns. These include an interactive website for solving out all construction related quarries of customers. Most were devised for individual home builders who constitute a large group of our end-users. An interactive website was launched primarily for the benefit of small retail consumers and home builders. The site provides online inputs on a host of useful topics related to home building and is proving to be quite popular. The website- www.askacc.com is visited by about 10,000 persons from different parts of the country. 4. ACC Help Centers A unique new service was the establishment of ACC Help Centres in several cities to provide basic information and guidance to customers on various home building-related procedures such as pr-construction worries on stamp duty, selection of architects and appropriate service providers, estimating budgers. Issues from purchasing land, budgeting to choice of material and planning of the construction process are elaborated, step-by-step. Tutorials, conveniently scheduled in the evenings, guide the customer, through the relevant stages of house stage of building ones Dream House. These publication are available in english, hindi and major regional languages. To look for an ACC Help Centre in nearest to you visit www.com.acchelp.in or write to-acchelp@acclimited.com.

162 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works 5. ACC Help Literature The ACC Help Centre distributes specially design booklets on each stage of building ones Dream House . These publication are available in english, hindi and major regional languages. To look for an ACC Help Centre in nearest to you visit www.com.acchelp.in or write to-- acchelp@acclimited.com.

6. ACC Help Vans Mobile touring vans to visit construction sites to educate users and masons at site and provide certain specialized services like supervision during slab casting on demand.

7. Indian Concrete Journal The Indian Concrete Journal, the countrys oldest civil engineering journal, continuous to be published by ACC. It reaches out to practicing and consulting engineers, architectures, builders, contractors and government departments. It aims to be disseminate the latest information and technological progress in civil and structural engineering, cement and concrete technologies, construction methods and practice. 8. Suggestion Boxes Each regional sales office of ACC use to maintain a suggestion box in which the customers and suppliers of ACC can put their suggestions to improve the service of the company. The marketing team use to accept the reasonable and possible suggestion to improve their services.

9. Complaint Handling Customer service personnel are responsible to attend to customer complaints. There is a formal system in place for handling customer complaints at all sales offices. These systems and documentation are regularly inspected by representatives of the Bureau of Indian Standards. The regional head is personally responsible to resolve individual complaints to their just and logical end. Commercial complaints are resolved at the local level while complaints related to application failures and quality are promptly referred to the head and quality in charge at the supplying cement plant as well as to the quality department at the corporate office. On receipt of a complaint, our 163 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works representatives visit the complainants site at the earliest and, if found necessary, samples are drawn for testing at the companys own laboratory. 10. Consumer Communication ACC have established and maintains effective communication with customers in relation to Product information Enquires, contractors or order handling, including amendments and Customers feedback, including customers complaints Usually Marketing Department in coordination with Quality Control Department provides a high quality services to their customers. The weekly test certificate indicating characteristics and quality of cement dispatches is sent to Regional Marketing Office (RMO) and these test

certificates are issued to the needy customers by marketing office (ACC also issue directly to customers on specified request). Marketing offices keeps regular touch with customers directly or through appointed dealers and get feedback from customers and any complaints/ queries is attended and resolved. Quality control personnel go to the site for assisting the marketing personnel in investigation. They collect sample if available and prepare a report and submit to RMO and Production Manger. These samples are tested at laboratory to evaluate any nonconformance of product and the genuinty of complaints. Customer is compensated or material is replaced if test prove any nonconformance and then non-conformance is recorded for further references and corrective/preventive actions to avoid reoccurrences of same.

COMPETITORS ACCs brand equity was found to be one of the strongest brands in cement industry. ACC has a number of competitors in the cement industry. The major competitors of ACC are as follows Domestic competitors Major competitors-o Ambuja Cements Ltd. o Ultratech Cements Ltd. o Grasim Cements Ltd. Other competitors 164 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works o o o o o o o o o o JK Group Shree Cements Ltd. India Cements Ltd. Jaypee Group Madras Cemets Ltd. Birla Corporation Century cements Ltd. Binani cements Ltd. Dalmia cements Ltd. Prism cements Ltd.

International competitors o Holcim Group (Switzerland) o Italcementi Group ( Italy) o Heidelberg Cements (Germany) o Lafarge India Pvt. Ltd. (France) So these are some of the competitors of ACC. ACC usually beliefs on a fair competition and hence it has formulated ten golden rules of competence to make its sales force well equipped. It is as follows 1. Apply due diligence 2. Seek assistance 3. Report to our legal department 4. Maintain a firm standard towards our competition 5. Draft with care 6. Avoid business contacts with our competitor 7. Do not unduly restrict our dealer 8. Do not force our dealers into dealings 9. Do not unduly obstruct our competitors 10. Don not exploit a dominant position

NEW PRODUCT DEVELOPMENT Product development has always being an important activity at ACC arising out of a focus on quality and process improvement. It has been a constant partner, driving research, innovation and evaluation. In 1964, a centralized research complex now renamed as ACC Thane Complex, spread over an area of 8000 sq m has modern labs with the latest equipment and manned by highly qualified scientists and technologists who carry out product development work in cement and allied fields.

165 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works ACC has introduced a new product in the market known as Masonary Cement. The composition of Masonary Cement is as followsClinker + Low Gypsum + Flotation Rejects. They are used for plastering purposes only. It provides shine and finishing. It have a low strength hence it cant be used for building any type of structures. Hence the marketing team of ACC is presently engaged in introducing Masonary Cements in the market. They are mainly engaged in the educating process of customers about the usage of low cost Masonary Cement and its quality.

TECHNOLOGY ABSORBTION

The marketing department of ACC has a well structured Research and Development (R&D) section. The marketing team of ACC always concentrate on adopting technical advancements and developing quality oriented and technically upgraded products. This R&D section of marketing team always helps in developing new technologically advanced products the main functions of R&D Department is as follows

1. Specific areas in which R&D is carried out by the company Improving quality of blended cement through innovative process utilizing industrial by-products Conservation of resources through use of low grade limestone for cement manufacture. Development of application of blending materials Process/product design improvements Development of new product or discovering new methods of analysis 2. Benefits derived as result of above R&D Effective use of marginal quality raw materials and fuels with improved clinker quality Increased absorption of blending materials in blended cements Effective replacement of the costlier natural Gypsum by cheaper Phospho gypsum without affecting the quality of cement. Maintain a lead position in all the market clusters of the country. 3. Future plan of action Exploratory research work on the above specific areas Focus on development of products aimed at enhancing use of cement in various applications 166 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Use of waste/ by-products in cement manufacture as alternative material Improve product quality particularly with respect to long term durability and reduction in its cost of manufacture. 4. Expenditure on R&D Capital Recurring (Gross) Total Total R&D expenditure Rs. Lakhs 37 325 362 0.05%

5. Foreign Exchange earnings and outgo Foreign exchange earned Foreign exchange used Rs. Lakhs 5561 4217

Thus the effective sales force of ACC helps to enhance the equity and strengthen its marketing potentials through these initiatives.

INTERNAL AUDIT DEPARTMENT


The Internal Audit Department functions independently, monitors and evaluates the efficacy and adequacy of internal control systems in the Company, and their compliance with operating systems, accounting procedures and policies at all the Companys locations, including its subsidiaries. Every quarter, the Audit Committee of the Board is presented with the audit findings and connected issues, if any, together with an implementation tracker which highlights management action taken on past audit issues. ACC has also implemented a well structured Internal Control System(ICS) and the internal and external audit periodically tests all the defined controls to ensure full compliance.

BUSINESS RISK MANAGEMENT (BRM) The Company has implemented a Business Risk Management process under this internal control systems that systematically identifies risks and opportunities. The BRM process supports the Managing Committee in strategic decision making. The process is robust and is a rolling exercise with a consistence annual review at the Regional level and the Corporate level, to examine and evaluate risks and opportunities. A detailed mind mapping of the risks is carried out, so as to identify the root cause of the particular risk, to enable the management to take effective steps to address/mitigate such risks. The risks 167 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works are plotted on a likelihood matrix and then integrated into the annual business plans as well as the audit plan of the company as relevant. The following is an analysis of the companys key business risks and mitigation plans: Fuels Risks ACC is a major consumer of coal for producing cement at various locations. The release of coal and allocation of quantities of coal, are entirely dependent upon the demand from all sectors and is in control of the Government of India. To ensure the timely availability of coal, ACC has taken steps to acquire coal blocks, to enter into medium term firm contracts and also to the possibility of using alternate fuels in place of coal.

Projects Risks ACC is executing large CAPEX projects to set up new cement manufacturing facilities, where the company is exposed to risks of timely completion and cost competitiveness. ACC has initiated semi-turnkey projects approach to reduce the time and costs for completion of large projects and has also restructured the project organization.

Compliance Risks ACC is exposed to significant risks due to non-compliance with various statutes and regulations including Competition Act. The company is mitigating these risks through regular reviews of legal compliance, through internal as well as external compliance audits and training to relevant employees. The company has set up the process to mitigate the environmental compliance risks such as investments in pollution abatement equipment, monitoring of ambient air quality, and construction of environmental labs. People risks Retaining the existing talent pool and attracting new manpower are major risks in this respect. The company has initiated various measures such as rollout of strategic talent management system and integration of learning activities in order to retain talent. The above key risks, along with all other risks and their mitigation plans as well as opportunities assessed by the Management, are built into the rolling business plans of the company.

168 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

CHAPTER V SWOT-ANALYSIS

169 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

SWOT-ANALYSIS

SWOT ANALYSIS OF ACC LIMITED


SWOT Analysis is under taken to understand the firms external and internal environments. Hence SWOT Analysis helps to identify the internal strengths and weakness of ACC and also the external opportunities and threats for ACC. The following are the details of SWOT Analysis conducted in the context of ACC Limited Strength ACCs brand name is synonymous with cement and concrete. The trademark ACC on 50 kilogram bags of Ordinary Portland Cements (45 and 53 grad), Blended cements (Fly ash and slag based) and some special purpose cements offers customers an assurance of dependable and consistent quality. The following are the strengths of ACC Limited: Peoples Brand The brand ACC enjoys a high level of equity in the Indian market. ACC is a brand with meaning not just to customers but to other stake holders such as share holders, employees and vendors. The name invokes an assurance of quality and trust. Product Assuring Quality and Trust 170 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works ACC promotes the use of blended cements which are environment friendly and acknowledged for their superior and unmatched durability as compared to ordinary cements. Ultimate Resources The Ultimate Resource backed by a loyal and dedicated workforce helped ACC to prove itself as an expert in the management of change. Manufacturing Excellence ACC strive to retain their position as Indias foremost manufacturer of cement and concretes with a countrywide bouquet of 60 modern cement factories. Uninterrupted Supply Chain ACC has a large supply chain managed by an energetic sales force from an extensive spread of sales offices spanning India, Countrywide network of highly channel partners comprising more than 9000 dedicated dealers complimented by a chain of retailers. Sustainable Development ACC believe in the triple bottom line approach. Measuring their progress against this framework means balancing the pursuit of their economic prosperity together with maximizing their contribution to the wellbeing and preservation of the planet and its people. ACC Help to build with confidence ACC is essentially a peoples brand of cement and its customer base represents the masses of India individual home builders in small towns, rural and semi urban area. ACC Help Services cater to the retail buyer offering not merely guidance about the correct application of cement but also knowledge about the entire process of home building. Hence these are some of the strengths of ACC which helps to bring out the ACC as one of the best brands in cement industries. Weakness ACC is a brand which enjoys a high level equity in the Indian market. Despite being the largest cement producer in the country, ACC possesses certain weakness. They are as follows171 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Cost Structure The performance of ACC is more sensitive to price than volumes because of its cost structure. The cost structure of ACC is showing an increasing trend which results in the high cost of production. Price Sensitivity ACC has the highest sensitivity to cement prices and its fragmented capacity results in not being able to influence the price in any significant manner. Even in Karnataka, despite having the highest market share ACC cement is priced lower than ultra tech cement. Capacity Addition Hurts A nation wide presence has resulted in ACC being one of the worst effected due to commissioning of new capacities in any region South, East & West. Capacity addition invariably results in market share adjustments and thereby price war. Lower Cost the impact is not visible The decrease in the cost of production does not show much impact in ACCs cost structure. This is basically due to the high power and fuel cost. The fuel use in ACC plants is basically coal and hence the cost spend on power and fuel is inevitable. As a result of high cost of power and fuel, the decease in cost from any source is not visible in the cost structure. Price Follower ACC is a price follower despite being the largest cement manufacturer in the country. Its sensitivity to prices ensures that it can never lower prices to gain market share without hurting itself more than the competitors. These are some of the weakness of ACC Limited. The company is highly conscious while dealing with these weaknesses. The main area of focus of the company is to convert these weakness into the strength of the company. Opportunities ACC is one of the important brands of Indian cement industry. The changes in Indian cement industry will effect directly or indirectly ACC Limited. The positive changes in 172 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works Indian cement industry act as a opportunity for brands like ACC. opportunities are as follows Infrastructure Development The Finance Minister Pranab Mukherjee in his Union Budget 2010 speech gave due importance to the expansion of excellent quality of physical infrastructure in the form of roads, airports, ports and railways to maintain economic development. He proposed few initiatives which are estimated to have a considerable impact on Infrastructure Sector in FY 2010-11. Housing Sector Boom Over the next five years, the numbers of households are expected to increase at a CAGR of 2.3 per cent, against a population growth rate of over 1.7 per cent. The growth in urban households will be higher than rural households, shifting the rural-urban household ratio from 70:30 to 67:33. As the growth in households is higher than the population growth, it will accelerate the demand for new houses. Higher demand and greater affordability due to lower interest rates and tax breaks is expected to trigger an unprecedented housing boom. The housing finance industry has estimated a latent demand of 33 million houses and forecasts a growth of 50 per cent per annum till 2010. With the housing sector accounting for 50 per cent of the current cement demand, this boom is expected to propel even higher cement demand. Road Construction will boost demand The Government has set the target of constructing 20 km. of national highways on daily basis and to trigger these changes projects have been undertaken via public private partnerships (PPPs). The Finance Ministry increases the allotment of road transport to Rs. 19,894 crore against the previous Rs. 17,520 crore for 2010-11. In an attempt to revise and enlarge the railway network, the ministry has also allocated Rs. 16,752 crore while presenting the union budget. Commercial Structure and Corporate Projects With most industries like textiles, chemicals and plastics, ferrous and nonferrous metals and non-metallic and mineral products operating at close to full capacity, large investment in capacity expansions across sectors is likely to boost cement demand. Strong off take is also expected from select segments such as commercial complexes and multiplexes in important centres such as Bangalore, Hyderabad and Ahmedabad. 173 SMBS, Mahatma Gandhi University, Kottayam Some of such

ACC Limited Madukkarai Cement Works These are some of the opportunities for Indian cement industries which helps brand like ACC to invade new areas of development. Threats ACC being part of domestic cement industry has to face the threats associated with Indian cement industries. The following are some of the threats of Indian cement industries Coal Cess The introduction of cess on coal in the recent budget is proving to be having a multiplier effect across board in terms of cost rise. Cement companies claims that production cost will have to rise because of this. Excise Roll over The Excise roll over of about 2% in the recent budget will surely increase price of cement per bag. The excise roll over of about 2% will definitely hit cement companies as it will increase the cost of production as well as cost of cement per bag. Increase in Competition The international players in cement industries are entering in the domestic cement market of the country, as a result of which the domestic players like ACC etc. are facing tough competition and price war situation. Infrastructure Development Budgetary allocation for infrastructure has increased but in actual there is no big picture emerging for the much needed infrastructure development. Hence it will act as a negative point for the cement industry and its growth. Hence these are some of the internal strengths and weaknesses and external opportunities and threats of ACC Limited.

174 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

CHAPTER VI EVALUTION AND SUGGESTIONS

175 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

FINDINGS
The first factor to be considered is there is a lot of procedures involved in the entire process of cement packing and loading The second one is that the vehicle traffic at the parking lot increases gradually based on the demand of cement On the average every vehicle spends nearly 13 hours to complete their process (from the parking lot to gate out) The average time spent in parking lot is 63%, loading is 15%, and placing time is 32% y every truck. Out of 182 truck (15 days) waiting time of 65 trucks fall under 5 to 10 hours. 42 trucks fall under 0 to 5 hours 10 trucks fall under 15 to 20 hours. Permitting the truck in between to fulfill the local needs is the major reason for the problem The consumption of ACC ltd in the year 2014-15 will increase to 26404 tones

SUGGESTIONS The time wastage of trucks can be eliminated by computerizing the token issue
counter at the parking lot.

Arrives for loading rarely, except that times the parking house remaining idle.
That could be used for loading the truck so that the next truck can be called in earlier. In order to implement this man power must be increased.

To avoid trucks waiting in the parking lot, time and date for the dispatch for the
orders placed can be informed prior to the dealers so that they can send their trucks at the time. The truck which has its dispatch on that day arrives and waits in the parking lot. This reduce crowd in the parking lot.

There is a need in improving the maintenance system exiting in the company.


176 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

The delay in the checking process can be minimized by automating the system. Improvement or changes could be bought in the work atmosphere so that it may
increase productivity results

Company should give satisfied salary to their employees Cleanliness, sanitation facilities should be improved Company should bring changes and improvement in drinking water facilities Rest room and canteen facilities should be provided to the workers in hygienic
manner

Remuneration policy will helps to improvement in productivity The company may try to make free time of the employees more pleasant and
joyful by providing better recreation facilities. Games, cultural programs, sports, competitions etc, are the measures suggested.

Motivation and industrial training facilities should be provided to worker in a


convenient manner.

The company has to concentrate at the net profit The liquidity ratio is in good position and thus, the company should maintain this
in future as well

Due to large and expanded operations, the company should always keep a check
in its working capital. so that day to day production can continue without any hindrance and financial obstacles

The management of inventory should ensure that no inventories are lying in stock
for log time.

177 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

CHAPTER VII

LEARNING EXPERIENCE

178 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

LEARNING EXPERIENCE
The training period in ACC Limited was immensely beneficial as I learnt practically all that I had been studying theoretically. It also enabled me to understand the implementation of various methods, policies, accounting procedures and other aspects in the organization. The organization study at ACC Limited, Madukkarai Cement works, to acquaint myself with the business environment for a period of one month from May 2nd 2012 to June 4th 2012 as a part of the MBA curriculum at the School of Management and Business Studies, Mahatma Gandhi University, Kottayam. The study was conducted to understand the structure, function and process of various departments and their interdependent. During the course of study I was able to successfully interact with the employees of the organization. They were happy to give me all possible information. They also took me to the plants and work sites were I got the first hand information about the organizational process and function. The methodology consists of data collection through interview, observation and literature review. The data collection from different sources are classified and analyzed and interpreted based on different which an organizational structure, its function various departments are identified. The various departmental functions are clearly identified and their process and activities carried are recorded and the department analysis made me to understand the departmental process based on which a process chart is prepared. The analysis further formed the basis for identifying the departmental interdependency. The study further relives some of the challenges faced by the department. The study helps us to obtain an exact picture of ACC Limited based on which, a SWOT analysis is done. Finally with the help of latest statistics available for the organization, the present trend and current scenario of ACC Limited is clearly revealed.

179 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

CHAPTER VIII CONCLUSION & BIBLIOGRAPHY

180 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

CONCLUSION
From the above study conducted in ACC Madukkarai Cement Works, the departmental structure and functioning of ACC Limited and its other plants become clear to a large extend. The factors related to the functioning of each department and of the organization as a whole become clear from the study conducted in ACC Limited.

From the above study the theoretical knowledge has become the experienced one. It helped to understand and learn the actual structure and working of each and every department of an organization. It also helped to observe and analyze closely the function and procedure of each and every department of the organization.

The study also revealed the facts related to the changing environment of the cement industry and its impact on the brands like ACC. It also revealed the facts related to the opportunities and threats of cement industry of the country. It also represented the sustainable development in the Indian cement industry and the impact of growth of Indian cement industry on the economic growth of the country.

Thus from the above study the gap between the theoretical study and practical study has been filled up. It provided an essence of experience in the pool of theoretical knowledge.

Chris Jose.

Email: meandkrz@yahoo.co.in Mob: 9496333809

181 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

BIBLIOGRAPHY

WEBSITES:

1. ACC LIMITED , http://www.acclimited.com

2. ACC HELP CENTRE , http://www.acchelp.com

3. GOOGLE SEARCH , http://www.google.com

4. CEMENTERIE NATIONALE , http://www.cimnat.com.ib/history.asp

5. ASIAN DEVELOPMENT BANK , http://www.adb.org

6. CEMENT MANUFACTURERS ASSOCIATION SITES

7. ANNUAL REPORTS OF ACC LIMITED.

182 SMBS, Mahatma Gandhi University, Kottayam

ACC Limited Madukkarai Cement Works

183 SMBS, Mahatma Gandhi University, Kottayam