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Full history, profile and details about ACC limited. -chris jose. 09496333809, emial: meandkrz@yahoo.co.in

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Acc limitedbychris jose

  1. 1. A REPORT ON ORGANIZATION STUDY AT ACC LIMITED, MADUKKARAI CEMENT WORKS, COIMBATOREAn 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
  2. 2. 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 ATACC LIMITED-MADUKKARAI CEMENT WORKS, COIMBATORE‖, submittedto Mahatma Gandhi University in partial fulfillment of the requirements for the award ofthe degree of Master of Business Administration is a record of the original work done byMr. Chris Jose (Reg No: 121115) during the period of his study in the School ofManagement and Business Studies, Priyadarshini Hills, Kottayam under my supervisionand guidance and the report or any part thereof has not been submitted elsewhere for anyother degree, diploma or other similar title of any other University.Place: Dr. K. SreeranganadhanDate: DIRECTOR 2SMBS, Mahatma Gandhi University, Kottayam
  3. 3. ACC Limited – Madukkarai Cement Works DECLARATION I, Chris Jose, hereby declare that this Report on―ORGANIZATION STUDY AT ACC LIMITED – MADUKKARAI CEMENTWORKS, COIMBATORE‖ is my original work and that it has not previously formedthe basis for the award of any Degree, Diploma or other similar title of any University orInstitution. - Chris JosePlace:Date: Email: meandkrz@yahoo.co.in Mob: 9496333809 3SMBS, Mahatma Gandhi University, Kottayam
  4. 4. ACC Limited – Madukkarai Cement Works ACKNOWLEDGEMENT The success that has been accomplished in my project would not havebeen possible without the timely help and guidance rendered to me by many people. Thisstudy became possible through the wholehearted co-operation of many persons and wellwishers.I am grateful to Dr. K. Sreeranganathan, Director, School Of Management and BusinessStudies, 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 andBusiness 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 (DeputyManager –Procurement department) of M/s ACC Limited-Madukkarai Cement Works,Coimbatore and Shri Ninan Thayi sir (Manager –Logistics), Mr. S.N. VijayakumaranNair (Sales Head), Mr. Prasad Parsewar (Dy. Manager – Marketing) Mr. Jaxen K.J(Manager – special projects) of M/s ACC Limited – Sales unit, Edappally, Cochin forkind 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 forproviding the necessary facilities for completing this work.I am also thankful to my family and friends who supported me throughout the projectwork. I will be failing in my duty if I do not acknowledge the deep debt of gratitude Iowe to the authors whose writings have provided an insight to the intricacies of thesubject. - Chris Jose 4SMBS, Mahatma Gandhi University, Kottayam
  5. 5. ACC Limited – Madukkarai Cement Works ABSTRACT Organization study is usually conducted in a well structured and reputedorganization. The basic objective of conducting organization study is simply tounderstand and learn the actual structure and working of each and every department of anorganization. The main purpose of the study is to observe, analyze and interpret ate thefunctions and procedures of each and every department of the selected organization.From the study conducted in ACC Limited, Madukkarai Cement Works a basic idea offunctioning of various departments of the company has got. Hence the organizationstudy conducted in ACC Limited, helped to a large extent to experience the real work lifesituation in an organization. Cement is a binder, a substance which sets and hardensindependently, and can bind other material together. The working of the cement plant hasbeen studied in depth with the history of the plant, sources of raw materials, productionof cement, functioning of various departments adopted. 5SMBS, Mahatma Gandhi University, Kottayam
  6. 6. ACC Limited – Madukkarai Cement Works CONTENTS SL No. CHAPTER TITLE PAGE No. 1 CHAPTER--I INTRODUCTION 7 2 CHAPTER--II AN OUTLOOK OF--TYPE 10 OF INDUSTRY 3 CHAPTER--III COMPANY-- PROFILE 22 DEPARTMENTAL 45 ANALYSIS- * Production department 48 4 CHAPTER--IV * Quality control department 62 * Finance department 78 * HRM department 91 * ARF department 112 * Procurement department 119 * General stores department 122 * Environment department 129 * CSR department 136 * Maintenance department 140 * System department 147 * Marketing department 152 * Internal audit section 166 5 CHAPTER--V SWOT--ANALYSIS 168 6 CHAPTER--VI EVALUATION AND 174 SUGGESTIONS 7 CHAPTER--VII LEARNING EXPERIENCE 177 6SMBS, Mahatma Gandhi University, Kottayam
  7. 7. ACC Limited – Madukkarai Cement Works 8 CHAPTER--VIII CONCLUSION & 179 BIBLIOGRAPHY CHAPTER I INTRODUCTION 7SMBS, Mahatma Gandhi University, Kottayam
  8. 8. ACC Limited – Madukkarai Cement Works ORGANIZATION STUDY AT ACC LIMITED, MADUKKARAI CEMENT WORKSINTRODUCTION Organization Study helps to convert the theoretical knowledge andpractical 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 acontinuing basis. Organizational study conducted by the School of Management andBusiness Studies is a training program that helps management students gain knowledgeand practical working conditions of an organization. The purpose of training program isto have an exposure to the real life situations relevant to business areas and strengthen theconceptual 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 learnthe actual structure and working of each and every department of an organization. Themain purpose of the study is to observe, analyze and interpret ate the functions andprocedures of each and every department of the selected organization.From the study conducted in ACC Limited, Madukkarai Cement Works a basic idea offunctioning of various departments of the company has got. Hence the organizationstudy conducted in ACC Limited, helped to a large extent to experience the real work lifesituation in an organization.OBJECTIVES OF THE STUDY  Understand the structure of the organization 8SMBS, Mahatma Gandhi University, Kottayam
  9. 9. 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 organizationSCOPE OF THE STUDYThe organization study conducted in ACC Limited, Madukkarai Cement Works gave abasic idea of functioning of various departments of the company. It helped to understandthe constraints and problems involved in carrying out a business successfully. The studygave the experience of working in an organization and also helped to understand theenvironment of the organization.It helped to view and analyze the functioning of various departments and also helped toview the decision making and implementation strategies in an organization.SOURCES OF INFORMATIONPrimary data were collected through the personal visits and interview with the staff andexecutives of various departments of ACC Limited, Madukkarai Cement Works.Secondary data were received from the Annual Report and Magazines of the companyand from the website of the company.LIMITATION OF THE STUDY 9SMBS, Mahatma Gandhi University, Kottayam
  10. 10. ACC Limited – Madukkarai Cement WorksA detailed study was not possible because of the time constrains. However, efforts havebeen made to incorporate all aspects related to ―Organization Study‖ in ACC Limited,Madukarai Cement Works. The study is based on the information supplied and inferencethat is made from the statement of experts. The techniques used for the analysis has itsown limitations and these limitations have its own effect on the report also. CHAPTER II AN OUTLOOK OF TYPE OF INDUSTRY 10SMBS, Mahatma Gandhi University, Kottayam
  11. 11. ACC Limited – Madukkarai Cement Works An Outlook of Indian Cement Industry Cement is one of the core industries which plays a vital role inthe growth and expansion of a nation. The demand for cement depends primarily on thepace of activities in the business, financial, real estate and infrastructure sectors of theeconomy. Cement is considered preferred building material and is used worldwide for allconstruction works such as housing and industrial construction as well as creation ofinfrastructures like ports, roads, power pants, etc. Indian cement industry is globallycompetitive because the industry has witnessed healthy trends such as cost control andcontinuous technology up-gradation.The Indian cement industry is extremely energy intensive and is the third largest user ofcoal in the country. It is modern and uses latest technology, which is among the best inthe world. Also, the industry has tremendous potential for development as limestone ofexcellent quality is found almost throughout the country.INVENTION OF CEMENTEver since civilizations first started to build, the world has sought a man made bondingmaterial 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 theuse of building materials from a clay based mixture and air hardening lime. TheEgyptians advanced to the discovery of lime and gypsum mortar as a binding agent forbuilding such structures as the Pyramids. The Greeks made further improvements andfinally the Romans developed cement that produced structures of remarkable durability(Cement Association of Canada 2006). The secret of Roman success in making cementwas traced to the mixing of slaked lime with Pozzolana, a volcanic ash from MountVesuvius. This process produced cement capable of hardening under water. During theMiddle Ages this art was somehow lost. In the 18th century, big efforts started in Europeto understand why some limes have hydraulic properties (Cimenterie Nationale 2007).John Smeaton often referred to as ‗father of civil engineering‘ in England concentratedhis work in this field and made the first modern concrete by adding pebbles as a coarseaggregate and mixing powered brick into the cement in 1759. A number of discoveriesfollowed. It was in 1817 that Louis Vicat conducted work on the hydraulic nature of thelime-volcanic ash mixture. He was the first person to accurately determine the 11SMBS, Mahatma Gandhi University, Kottayam
  12. 12. ACC Limited – Madukkarai Cement Worksproportions of limestone and silica required to make the mixture of cement. He publishedthe results of his research, but did not apply for a patent. Finally, in 1824 Joseph Aspdinpatented the basic process of slower-setting cement. He addressed this as ‗Portlandcement‘ due to the fact that in appearance and hardness, it resembled the upper Jurassicrock found in the region of Portland, in southern England (Lafarge 2004).CEMENT INDUSTRY IN INDIAThe Indian cement industry is the second largest cement producer just behind China , butahead of the United States and Japan. The government of India giving boost to variousinfrastructure projects housing facilities and road networks as a result of which thecement industry in India is currently growing at an enviable pace. It is also predicted thatthe cement production in India would rise to 262.61 MT.The Indian cement industry comprises of 140 large and, more than 365 mini cementplants , where majority of the production of cement (94%) in the country is by largeplants.The industry‘s capacity at the beginning of the year 2009-10 was 217.80 million tones.During the period of April—Sept 2009, the Indian cement companies have produced 11MT cement. The Indian cement industry has witnessed a phenomenal capacity additionto the tune of about 52 MT tones in the last two financial years which accounted forabout 24% of the industry‘s capacity of 218 mn tones at the end of FY09. In the last twofinancial years, the cement industry has registered a double-digit growth in capacityaddition compared to moderate growth of 3-7% registered during period FY 03-07. As aresult, industry‘s capacity utilization rate which showed a rising trend up to FY07 hasdropped to a level of 83% in FY09.In FY09, the GDP growth slowed down to 6.7% compared to the 9% growth reported inFY08.There is only one Central Public Sector Undertaking in the cement sector, i.e. CementCorporation of India, which has 10 units. There are 10 large cement plants owned byvarious State Governments.BEGINING OF INDIAN CEMENT INDUSTRYThe attempt to produce cement in India dates back to 1889 when a Calcutta firmattempted to produce cement from Argillaceous (kankar). But the first organized effort onmass scale to manufacture Portland cement commenced in Madras (Washermanpet), in1904, by South India Industries Limited (Cement Manufacturers Association 1964;Gadhok 2000). The factory could not succeed hence it failed. However, it was in 1914that the first commissioned cement-manufacturing unit in India was set up by India 12SMBS, Mahatma Gandhi University, Kottayam
  13. 13. ACC Limited – Madukkarai Cement WorksCement Company Limited at Porbandar, Gujarat, with an installed capacity of 10,000tonnes and production of 1000 tonnes. Subsequently two plants; one at Katni (M.P.) andanother at Lakheri (Rajasthan) were set up. The First World War gave positive stimulusto the infant industry. The following decades saw increase in number of plants, installedcapacity and production. This period can thus be called the Nascent Stage of Indiancement industry.The problem of supply outstripping demand was significant in early period of theindustry. Problem of disposal of cement was aggravated by the prejudice with whichindigenous cement was regarded. This was followed by a price war between theproducers where they resorted to cutting down of prices and selling at below productioncost. This situation forced many companies into liquidation. It was then when the government of India intervened into the market and referred thecement industry to the Tariff Board. The board recommended protection by governmentand cooperation among existing cement units. All these events resulted in formation ofIndian Cement Manufacturers‘ Association in 1925 whose main function was to regulateprices in the industry. In 1927, Concrete Association of India was formed whose twomain objectives were to educate public about the use of cement and to play an active rolein popularizing Indian cement. The next step in the direction of rescuing cement industrywas the formation of Cement Marketing Company of India Limited in 1930 to promoteand control the sale and distribution of cement at regulated prices.After all these initiatives, the sales increased along with more plants. In 1936, elevencompanies, except Sone Valley Portland Cement Company Limited, merged to formAssociated Cement Company Limited (ACC). In 1937, Dalmiya Jain Group set up fivefactories with installed capacity of 575000 tonnes and ACC added four more plants. Withall these expansions, price war again started off which resulted into a significant decreasein prices. But in the post world war period, setting up of Department of Planning andindependence of the country provided fresh impetus to the industry.The price and distribution control system on cement, implemented in 1956, aimed atensuring fair prices to producers and consumers all over the country, thus reducingregional imbalances, and at reaching self-sufficiency within a short time period. Althoughdue to slow growth in capacity expansion and rising cost in the industry, the governmenthad to increase the fixed price several times. However, these price increases as well asfinancial incentives to enhance investment, showed little effect on the industry. In spite ofthe fact that government exercised no control over the Indian cement industry all throughthe Third Five Year Plan (1961-1967), growth was low due to inadequate retention priceand lack of adequate financial resources to the existing companies.CEMENT BUSINES----PERFORMANCE AT A GLANCE 13SMBS, Mahatma Gandhi University, Kottayam
  14. 14. ACC Limited – Madukkarai Cement Works 2011 2010 Change % Production- million 21.37 20.83 2.6 tones Sales volume- 21.52 21.01 2.4 million tones Sales value-Rs.crore 8027.19 7282.87 10.2 EBITDA % 32.3% 25.5%CEMENT PRODUCTION AND GROWTHDomestic demand plays a major role in the fast growth of cement industry in India. Infact the domestic demand of cement has surpassed the economic growth rate of India.During 2008—2009 total cement consumption in India stood at 178 million tones whileexports of cement and clinker amounted to around 3 million tones. However, cementconsumption growth in FY09 at 8.4% has been able to maintain its multiplier factor withGDP growth at 1.25 times. Growth in Cement Demand Figures in Million Tones 2010-11 Apr—Nov 2011 Domestic Consumption 178 100 Year –on-Year Growth(%) 8.4 12.5Cement production during April to January 2009-10 was 130.67 million tones ascompared 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 2009-10whereas during the same period for the year 2008-09, it stood at 115.07 million tones. Cement Production & Despatches Description 2010-11 2009-10 (April—January) in MT Cement Production 130.67 115.52 Cement Despatches 129.97 115.07 14SMBS, Mahatma Gandhi University, Kottayam
  15. 15. ACC Limited – Madukkarai Cement WorksGROWTH OF INDIAN CEMENT INDUSTRYThe 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 efficientunits to consolidate their operations by restructuring their business and taking overrelatively weaker units.The following table shows the growth of Indian cement industry at the end of five yearplan (including mini and white pants): End Year of the Plan Capacity (M.t.) Production (M.t.) Capacity Utilization (%) 3.28 2.20 67 Pre- Plan Period (1950- 51) 1st Plan (1955-56) 5.02 4.60 92 2nd Plan (1960-61) 9.30 7.97 86 3rd Plan (1965-66) 12.00 10.97 91 4th Plan (1973-74) 19.76 14.66 74 5th Plan (1978-79) 22.58 19.42 86 6th Plan (1984-85) 42.00 32.13 72 7th Plan (1989-90) 61.37 45.42 74 8th Plan (1996-97) 105.26 76.22 72 9th Plan (2001-02) 145.99 106.90 73 10th Plan (2006-07) 177.83 161.66 91 15SMBS, Mahatma Gandhi University, Kottayam
  16. 16. ACC Limited – Madukkarai Cement WorksREGIONAL CONCENTRATIONCement, being a bulk commodity, is freight intensive and transporting cement over longdistances can prove to be uneconomical. This has resulted in cement being largely aregional 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 industryand is excess in capacity owing to the availability of limestone, but the western andnorthern regions are the most lucrative markets. East has most of the consumption ofcement as of now due to growing infrastructure. When we look at the evolution of theindustry, it can be seen that distribution of capacities of cement in India has now beenmore 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 of31%. In the Eastern region, the major consumer is West Bengal, but the highest growthrate of 38% has been achieved by North Eastern states. In the Western region, althoughMadhya Pradesh is the highest producer of cement, the total consumption is highest inMaharashtra with a consumption of 12.29 million tones. In the Southern region, while thehighest consumption takes place in Tamil Nadu followed by Andhra Pradesh, Karnatakaand 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 outperformedthe industry in consumption growth. The Eastern region continued its buoyantperformance and registered the highest cement consumption growth of 11.3%.TheSouthern and Central regions also reported impressive double-digit growth of 10.4% incement consumption. But, the Northern region has registered the lowest growth in thecement demand on yoy basis. Comparatively, poor demand growth registered by theWestern region was on account of high base of the last year and also slightly subdueddemand.TECHNOLOGY UP-GRADATION 16SMBS, Mahatma Gandhi University, Kottayam
  17. 17. ACC Limited – Madukkarai Cement WorksCement industry in India is currently going through a technological change as a lot of upgradation and assimilation is taking place currently, almost 93% of total capacity is basedentirely 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 hugescope of waste heat recovery in cement plants, when lead to reduction is the emissionslevel and hence improves the environment.COMPONENTS FOR MANUFACTURING THE CEMENTThe Indian cement industry is the second largest producer of quality cement. IndianCement Industry is engaged in the production of several varieties of cement such as- 17SMBS, Mahatma Gandhi University, Kottayam
  18. 18. ACC Limited – Madukkarai Cement Works Portland Blast Furnace Slag Cement (PBFS) Ordinary Portland Portland Pozzolana Cement (OPC) Cement (PPC) Sulphate Resisting Portland Cement White Cement Rapid Hardening Portland Cement Oil Well CementThe basic raw components of manufacturing the various type of cement are asfollows- 18SMBS, Mahatma Gandhi University, Kottayam
  19. 19. ACC Limited – Madukkarai Cement Works Limestone Raw Silica Components Iron Oxide Aluminum Oxide MAJOR PLAYERS IN INDIAN CEMENT INDUSTRYThere are a number of players prevailing in cement industry in India. However , there arearound 17 big names that account for more than 70% of total cement production in India. 19SMBS, Mahatma Gandhi University, Kottayam
  20. 20. ACC Limited – Madukkarai Cement WorksThe total installed capacity is distributed over around 129 plants, owned by 54 majorcompanies across the nation.List of Cement Companies in India.AACC LimitedAmbuja Cements LimitedAndhra Cements LtdBBarak Valley Cements LtdBheema Cements LtdBinani Cement LtdBirla Corporation LimitedBurnpur Cement LtdCChettinad Cement Corporation LimitedDDalmia Cement (Bharat) LimitedDeccan Cements Ltd.EEverest Industries LtdGGrasim Industries LimitedGujarat Sidhee Cement LtdHHeidelberg Cement India LtdHyderabad Industries LtdIIndian Hume Pipe Company Ltd 20SMBS, Mahatma Gandhi University, Kottayam
  21. 21. ACC Limited – Madukkarai Cement WorksJJ. K. Cement LimitedJK Lakshmi Cement LtdKKalyanpur Cements Ltd.Katwa Cements LtdKesoram Industries Ltd.MMadras Cements LimitedMangalam Cement Ltd.NNCL Industries Ltd.Nirman Cements LtdOOCL India Ltd.PPanyam Cements & Mineral Inds. LtdPrism Cement LtdRRose Zinc LtdSSagar Cements Ltd.Sainik Finance & Inds. Ltd.Sanghi Industries LtdSaurashtra Cement Ltd.Shiva Cement LtdShree Digvijay Cement Company Ltd.Somani Cement Company LtdSri Vasavi Inds. LtdSrichakra Cements LtdStresscrete India Ltd 21SMBS, Mahatma Gandhi University, Kottayam
  22. 22. ACC Limited – Madukkarai Cement WorksTThe India Cements LimitedUUdaipur Cement Works LtdUltraTech Cement LimitedVVinay Cements LtdVisaka Industries LtdThe following table shows the position of the major cement industries in Indian cementindustry: Overall Rankings and Scores of Cement Firms Firm Rank 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 22SMBS, Mahatma Gandhi University, Kottayam
  23. 23. ACC Limited – Madukkarai Cement Works CHAPTER III COMPANY PROFILE 23SMBS, Mahatma Gandhi University, Kottayam
  24. 24. ACC Limited – Madukkarai Cement Works MADUKKARAI CEMENT WORKS COMPANY PROFILE ACC (ACC Limited) is Indias foremost manufacturer of cement andconcrete. ACCs operations are spread throughout the country with 16 modern cementfactories, more than 40 Ready mix concrete plants, 20 sales offices, and several zonaloffices. It has a workforce of about 10,000 persons and a countrywide distributionnetwork of over 9,000 dealers.Since inception in 1936, the company has been a trendsetter and important benchmark forthe cement industry in many areas of cement and concrete technology. ACC has a uniquetrack record of innovative research, product development and specialized consultancyservices. The companys various manufacturing units are backed by a central technologysupport 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 largestcement producer in India, it is one of the biggest customers of the domestic coal industry,of Indian Railways, and a considerable user of the country‘s road transport networkservices for inward and outward movement of materials and products.Among the first companies in India to include commitment to environmental protectionas one of its corporate objectives, the company installed sophisticated pollution controlequipment 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 anddevices.ACC plants, mines and townships visibly demonstrate successful endeavors in quarryrehabilitation, water management techniques and ‗greening‘ activities. The companyactively promotes the use of alternative fuels and raw materials and offers total solutionsfor waste management including testing, suggestions for reuse, recycling and co-processing. 24SMBS, Mahatma Gandhi University, Kottayam
  25. 25. ACC Limited – Madukkarai Cement WorksACC has taken purposeful steps in knowledge building. We run two institutes that offerprofessional technical courses for engineering graduates and diploma holders which arerelevant to manufacturing sectors such as cement. The main beneficiaries are youth fromremote and backward areas of the country.ACC has made significant contributions to the nation building process by way of qualityproducts, services and sharing expertise. Its commitment to sustainable development, itshigh ethical standards in business dealings and its on-going efforts in community welfareprogrammes have won it acclaim as a responsible corporate citizen. ACC‘s brand name issynonymous with cement and enjoys a high level of equity in the Indian market. It is theonly 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 oneumbrella in a historic merger - the countrys first notable merger at a time when the termmergers and acquisitions was not even coined. The history of ACC spans a wide canvasbeginning with the lonely struggle of its pioneer F E Dinshaw and other Indianentrepreneurs like him who founded the Indian cement industry. Their efforts to facecompetition for survival in a small but aggressive market mingled with the stirring of acountrys nationalist pride that touched all walks of life - including trade, commerce andbusiness.The first success came in a move towards cooperation in the countrys young cementindustry and culminated in the historic merger of ten companies to form a cement giant.These companies belonged to four prominent business groups - Tatas, Khataus, KillickNixon 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 25SMBS, Mahatma Gandhi University, Kottayam
  26. 26. ACC Limited – Madukkarai Cement WorksACC stands out as the most unique and successful merger in Indian business history, inwhich the distinct identities of the constituent companies were melded into a newcohesive organization - one that has survived and retained its position of leadership inindustry. In a sense, the formation of ACC represents a quest for the synergy of goodbusiness practices, values and shared objectives. The use of the plural in ACCs originalname, The Associated Cement Companies Limited, itself indicated the companys originsfrom a merger. Many years later, some stockbrokers in the countrys leading stockexchanges continued to refer to this company simply as The Merger.OBJECTIVES OF COMPANY 1. To ensure a steady growth of business by strengthening the company‘s position in its core business of cement. 2. To maintain the high quality of the company‘s products and services and ensure its supplying at fair prices. 3. To ensure welfare of company‘s 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 COMPANYACC has an effective Quality Policy System  Manufacture Quality Products.  Customer satisfaction.  Continual improvement in quality.VISION STATEMENT OF COMPANYACC‘s Vision vividly declares the company‘s commitment to community and sustainabledevelopment issues making this an essential part of the five interdependent andintertwined business goals for the company. The essence of this resolve is contained inthe fifth goal or ―diamond‖ which envisages that ACC inspires trust and respect. 26SMBS, Mahatma Gandhi University, Kottayam
  27. 27. ACC Limited – Madukkarai Cement WorksThe ―5 diamonds‖ of ACC‘s 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 respectThis statement is synonymous with balancing the Triple Bottom Line – defined as theachievement 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.‖ 27SMBS, Mahatma Gandhi University, Kottayam
  28. 28. 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 STRUCTUREACC‘s organization structure was revised in 2006. Added thrust was given to sustainabledevelopment with the creation of separate cells at the corporate office and plants tocoordinate activities relating to waste management, alternate fuels and raw materials,corporate social responsibility and occupational health and safety. All these were placedunder the supervision of the Managing Director. 28SMBS, Mahatma Gandhi University, Kottayam
  29. 29. ACC Limited – Madukkarai Cement Works BOARD OF DIRECTORS MANAGING DIRECTOR REGIONAL HEADS BUSINESS HEAD BUSINESS (East Region) HEAD (South Region) BUSINESS HEAD BUSINESS HEAD (North Region) (West Region) Production HR Manger AFR Manger Marketing Manger Manger Procurement Stores Manger Manger Finance Manger CSR Coordinator 29SMBS, Mahatma Gandhi University, Kottayam
  30. 30. ACC Limited – Madukkarai Cement WorksBOARD OF DIRECTORSThe 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 30SMBS, Mahatma Gandhi University, Kottayam
  31. 31. ACC Limited – Madukkarai Cement WorksPRODUCTS PROFILE The company manufactures Portland cement for general constructionwhile its blended products, acknowledged for outstanding durability, include fly ash andslag-based cements. Both these varieties of cement offer high quality and specialproperties that defy the harshest environments. In addition to conserving valuable mineralresources and reducing waste, these blended cements also help cut down the emission ofcarbon dioxide and assist in checking global warming. ACC is sensitive to consumerneeds. When the company realized that large construction activities would require largeamounts of cement it set up the country‘s first facility for distribution of cement in bulk,as far back as 1956. To meet the needs of other consumers it introduced cement in small25 kilogram bags as also jumbo bags of 1MT.Today, of course, mechanized mega construction projects receive cement from ACCdelivered in bulk tankers – a welcome change from the conventional cement bag. ACCwas also the first company in India to introduce Ready Mix Concrete on a commercialbasis. A transit concrete mixer is now a familiar sight in India‘s major cities. Ready MixConcrete and Bulk Cement have enabled the construction industry to introducesophisticated practices for the speedy completion of large infrastructure projects.ACC is mainly engaged in the production of the following products— ORDINARY BLENDED PORTLAND CEMENT CEMENT PORTLAND SLAG CEMENT 31SMBS, Mahatma Gandhi University, Kottayam
  32. 32. ACC Limited – Madukkarai Cement WorksORDINARY 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. It‘s 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 8112—1989 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 company‘s R&D division. This unique, value-added product has hydraulic binding properties not found in ordinary cements. It is available in specially designed 50-kg bags. 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 Fly- ash 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, 32SMBS, Mahatma Gandhi University, Kottayam
  33. 33. 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 CEMENTThis is slag-based blended cement that imparts strength and durability to all structures. Itis manufactured by blending and inter-grinding OPC clinker and granulated slag insuitable proportions as per our norms of consistent quality. PSC has many superiorperformance characteristics which give it certain extra advantages when compared toordinary Portland cement. It is available in specially designed 50-kg bags.ACCS ECO-FRIENDLY CEMENT IN ONE YEARCement major ACC is likely to launch in the next one year environment-friendly cementthat 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 timeof burning limestone during its production, while the same is about 900 kg in the case ofconventional cement.According to sources in the know of the development, ACC‘s R&D division at Thane hasbeen 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 takeabout another one year to commercially launch the product as pricing, branding and someother 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 groupfirm 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, itwill expand distribution of the new cement across India based on customer feedback.When contated, a company spokesperson declined to comment on the development. 33SMBS, Mahatma Gandhi University, Kottayam
  34. 34. ACC Limited – Madukkarai Cement Works―The new product is being developed by using lesser limestone. The quality remainssame as some additives are used during the production process, besides improvement ingrinding techniques,‖ another source said.Cement production has always remained a concern for global warming due to the highenergy requirements and the release of significant amounts of CO2.Besides, ACC has embarked upon an ambitious project for substituting five per cent of itsannual coal requirement of about five million tonnes over the next three years with wastegenerated by cities and industries. It has already replaced two per cent of its coalrequirement with all types of wastes.The company, which saved Rs 47 crore last year on fossil fuels, aims to save Rs 60 crorein 2011 by burning waste, primarily plastics, at its plants.Global cement major Holcim-controlled ACC has an installed production capacity of 30million tonnes per annum in India.Apart from waste management, the company has also undertaken a drive to plant jatrophaand castor trees in and around its mines, plants, townships and waste land. As of 2010, ithad planted two million saplings out of its target of five million trees.ACC: VOLUME, VALUATION BOOSTVOLUME BOOST ACC has marked excellent 14 per cent growth in volumes to 17.76 milliontonnes (mt) during January-September 2011 — translating into an annualised capacityutilisation of 77 per cent. On a comparable basis, during April-September 2011, ACCvolumes at 11.56 mt have marked 15.1 per cent growth annually, compared to 0.2 percent by Ultratech and one per cent by Ambuja Cement, a group firm, partly aided by alow base.ACC, facing capacity constraints during last year, had been a laggard in terms of volumegrowth. It had posted negative growth for first three quarters of 2010, as its brownfieldexpansions 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, thecement capacity increased to 30.6 mt per annum by the end of 2010. Its captive powercapacity increased to 346 Mw. These have led to the growth in volumes seen so farduring 2011, and given the availability capacity volumes should continue to rise at ahealthy pace. 34SMBS, Mahatma Gandhi University, Kottayam
  35. 35. ACC Limited – Madukkarai Cement WorksBETTER REALISATIONSAlong 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 statessince September 2010 have sustained. Prior to September 2010, the prices in the southernstates 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, bymaintaining production discipline cement players have been able to sustain higher pricesin rest of India too. ACC saw realisations of Rs 4,052 a tonne (Rs 202.60 per bag) duringthe April-June quarter, 5.7 per cent higher over the same period last year. Further, duringthe sluggish September quarter which was marred by monsoon, realisations should comeat Rs 3,772 a tonne or Rs 188.60 per bag (up 11.3 per cent year on year), according toMotilal Oswal Research estimates.Notably, as the monsoon season ended, the last 15-20 days have also seen cement pricesgoing 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, thecoming months should see better demand. They feel though a major boost to demand willonly come after large infrastructure projects take off, cement players should be able tokeep prices at reasonable levels by maintaining volume discipline.COAL RISKCoking coal remains the basic raw material for cement production. While cementmanufacturers had been dealing with firm coal prices, a new problem has cropped up forthem. ACC procures about 20 per cent of its requirements from e-auctions from CoalIndia. However, for October 2011, Coal India has decided to offer e-auction quota topower companies facing acute shortage of coal. While cement majors generally keep 30-40 days of coal inventory and for now Coal India has decided for diverting suppliesduring October only, if the problem persist cement producers will have to shift to high-cost imported coal. According to Emkay Global estimates, if the problem persists for theOctober-December period, CY2011 EPS of ACC can be negatively impacted by 1.2 percent. Also, there is likelihood of Coal India going for price hikes considering the wagerevisions at the company, which could further impact ACC‘s margins.Secretarial & Share departments receive ISO 9001 – 2008 CertificationThe 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 ShareDepartment processes have received ISO certification. 35SMBS, Mahatma Gandhi University, Kottayam
  36. 36. ACC Limited – Madukkarai Cement WorksSUBSIDIARIES AND ASSOCIATES 1. ACC Concrete Limited ACC set up Indias 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 ACCs 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. 36SMBS, Mahatma Gandhi University, Kottayam
  37. 37. 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 PLANTS CAPACITY (MTPA) Bargarh 1.20 Chaibasa 0.87 Chanda 1.00 Damodhar 0.53 Gagal 4.40 Jamul 1.58 Kymore 2.20 Kudithini 1.10 Lakheri 1.50 Madukkarai 1.18 Sindri 0.91 Wadi 2.59 New Wadi Plant 3.20 Thondebhavi 1.60 Tikaria 2.31 37SMBS, Mahatma Gandhi University, Kottayam
  38. 38. ACC Limited – Madukkarai Cement WorksBUSINESS 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 Create Safe Place to Work Become employer of choice Corporate Reputed Corporate entity Citizenship Leadership in sustainable development Enhance community living standards Continual improvement in environment performance Bottom Line Achieve Internal target for growth in EBITDA over2007 38SMBS, Mahatma Gandhi University, Kottayam
  39. 39. ACC Limited – Madukkarai Cement Works ACC - MILESTONES1936 Incorporation of The Associated Cement Companies Limited on August 1, 1936.1936 First Board Meeting of The Associated Cement Companies Limited held at Esplanade House, Mumbai on November 10, 1936.1937 With the transfer of the 10th company to ACC, viz. Dewarkhand Cement Company, the formation of ACC is complete on October 23, 1937.1944 ACC‘s first community development venture near Bombay1947 India‘s first entirely indigenous cement plant established at Chaibasa in Bihar1952 Village Welfare Scheme launched1955 Sindri cement works used the waste product calcium carbonate sludge from fertilizer factory at Sindri.1956 Bulk Cement Depot established at Okhla, Delhi1957 Technical training institute established at Kymore, Madhya Pradesh.1957 Katni Refractories1961 Blast furnace slag from TISCO used at the Chaibasa Unit to manufacture Portland Slag Cement for the first time in India.1961 Manufacture of Accocid Cement, which resists the corrosive action of acids and chemicals.1961 Oilwell Cement manufactured at ACC Shahabad Cement Works in Karnataka for cementation of oilwells upto a depth of 6,000 feet.1961 Manufacture of Hydrophobic (waterproof) cement at ACC Khalari Cement Works in Bihar.1962 Manufacture of Accoproof, a waterproofing additive.1965 ACC‘s Central Research Station (CRS) established at Thane1965 Manufacture of Portland Pozzolana Cement.1965 Manufacture of Calundum, a High Alumina Binder; Firecrete, Low Density Alumina Castables and High Alumina Refractory Cement.1968 Advent of computers in ACC for data processing and designing management information and control systems. 39SMBS, Mahatma Gandhi University, Kottayam
  40. 40. ACC Limited – Madukkarai Cement Works1968 ACC supplied and commissioned one-million-tonne iron ore pelletising plant ordered by TISCO1971 Manufacture of Whytheat Castables A, K, C and Cal-Al-751973 Take-over of The Cement Marketing Company of India (CMI)1977 ACC receives ASSOCHAM first national award for the year 1976 instituted for outstanding performance in promoting rural and agricultural development activities.1978 Introduction of the energy efficient precalcinator technology for the first time in India. Full scale commercial production based on MFC technology at Wadi in 1979.1979 ACC wins international contract for operation and management of a new one million tonne cement plant at Yanbu-Ras Biridi in Saudi Arabia.1982 Commissioning of the first 1 MTPA plant in the country at Wadi, Karnataka.1984 ACC achieves a breakthrough in import substitution by developing and supplying a special G type of oil well cement to ONGC.1987 ACC develops a new binder for use at sub-zero temperatures, which is successfully used in the Indian expedition to Antarctica.1992 Incorporation of Bulk Cement Corporation of India, a joint venture with the Government of India.1993 ACC starts the commercial manufacture of Ready Mixed Concrete at Mumbai.1995 ACC selected as Most Respected Company in India by Business India.1998 Commissioning of the 0.6 MTPA cement grinding unit at Tikaria, Uttar Pradesh.1999 Commissioning of captive power plants at the Jamul and Kymore plants in Madhya Pradesh.1999 Tata group sells 7.2% of its stake in ACC to Ambuja Cement Holdings Ltd, a subsidiary of Gujarat Ambuja Cements Ltd. (GACL)2000 Tata Group sells their remaining stake in ACC to the GACL group, who with 14.45% now emerge as the single largest shareholder of ACC.2001 Commissioning of the new plant of 2.6 MTPA capacity at Wadi, Karnataka plant, the largest in the country, and among the largest sized kilns in the world. 40SMBS, Mahatma Gandhi University, Kottayam
  41. 41. ACC Limited – Madukkarai Cement Works2002 ACC wins PHDCCI Good Corporate Citizen Award2003 IDCOL Cement Ltd becomes a subsidiary of ACC2004 IDCOL Cement Limited is renamed as Bargarh Cement Limited (BCL).2004 ACC raises US $ 100 million abroad through Foreign Currency Convertible Bonds (FCCB‘s) for US$ 60 million and Global Depository Shares (GDS‘s) for US $ 40 million. Both offerings are listed on the London Stock Exchange.2004 ACC named as a Consumer Superbrand by the Superbrands Council of India, becoming the only cement company to get this status.2004 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.2005 ACC receives the CFBP Jamnalal Bajaj Uchit Vyavahar Puraskar Certificate of Merit – 2004 from Council For Fair Business Practices.2005 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, ACIL‘s shareholding in ACC increases to 34.69 % of the Equity share capital of ACC.2005 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.2005 Financial accounting year of the company changed to calendar year January- December2006 Subsidiary companies Damodhar Cement & Slag Limited, Bargarh Cement Limited and Tarmac (India) Limited merged with ACC2006 ACC announces new Workplace policy for HIV/AIDS2006 Change of name to ACC Limited with effect from September 1, 2006 from The Associated Cement Companies Limited.2006 ACC receives Good Corporate Citizen Award 2005-06 from Bombay Chamber of Commerce and Industry2006 New corporate brand identity and logo adopted from October 15, 20062006 ACC establishes Anti Retroviral Treatment Centre for HIV/AIDS patients at 41SMBS, Mahatma Gandhi University, Kottayam
  42. 42. ACC Limited – Madukkarai Cement Works Wadi in Karnataka– the first ever such project by a private sector company in India.2007 ACC partners with Christian Medical College for treatment of HIV/AIDS in Tamil Nadu2007 Sumant Moolgaokar Technical Institute completes 50 years and reopens with new curriculum2008 Ready mixed concrete business hived off to a new subsidiary called ACC Concrete Limited.2008 ACC Cement Technology Institute formally inaugurated at Jamul on July 7.2008 First Sustainable Development Report released on June 5.2008 ACC wins CNBC-TV18 India Business Leader Award in the category India Corporate Citizen of the year 20082008 Project Orchid launched to transform our Corporate Office, Cement House into a green building.2009 ACC received the Jamanalal Bajaj "Uchit Vyavahar Puraskar" of Council for Fair Business Practices2009 ACC is allotted coal blocks in Madhya Pradesh and West Bengal.2009 ACCs new Grinding plant of capacity 1.60 million tonnes inaugurated at Thondebhavi in Karnataka.2010 Kudithini Cement Grinding Plant inaugurated in Karnataka on January 4, 2010 with a capacity of 1.1 MTPA of Portland Slag Cement.2010 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 2010.2010 ACC enters its platinum jubilee year - the first company in the cement industry to achieve this status2010 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 time2011 Worlds largest kiln installed at ACC Cement Plant, Wadi, Karnataka with a capacity of 12,500 tonnes per day creating new landmarks for cement industry2011 Central Control Room Building at ACC Chanda Plant, Maharashtra set up 42SMBS, Mahatma Gandhi University, Kottayam
  43. 43. ACC Limited – Madukkarai Cement Works as a Green building, the first of its kind in an industrial environment ACC AWARDSACC was the first recipient of ASSOCHAM‘s first ever National Award for outstandingperformance in promoting rural and agricultural development activities in 1976. Decadeslater, PHD Chamber of Commerce and Industry selected ACC as winner of its GoodCorporate Citizen Award for the year 2002. Over the years, there have been manyawards and felicitations for achievements in Rural and community development, Safety,Health, Tree plantation, A forestation, Clean mining, Environment awareness andprotection.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. 43SMBS, Mahatma Gandhi University, Kottayam
  44. 44. 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. 44SMBS, Mahatma Gandhi University, Kottayam
  45. 45. 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. 45SMBS, Mahatma Gandhi University, Kottayam
  46. 46. ACC Limited – Madukkarai Cement Works CHAPTER IV DEPARTMENTAL ANALYSIS 46SMBS, Mahatma Gandhi University, Kottayam
  47. 47. ACC Limited – Madukkarai Cement Works DEPARTMENTAL ANALYSISThe brand ACC enjoys a high level of equity in the Indian market. ACC‘s brand equitywas found to be the strongest among its key competitors. ACC is a brand with meaningnot just to customers but to other stakeholders such as shareholders, employees andvendors.The true index of ACC‘s greatness is not only its turnover, not only its quantum of profitsbut its well defined Organization Structure- backed by a systematic and well organizeddepartments.ACC consists of a set of various departments backed by a loyal and dedicated workforceand other resources which lays down the foundation of building a strong, passionate andconfident organization i.e. ACC.ACC consists of a number of departments. From the study conducted in ACCMadukkarai Cement Works we can broadly classify the departmental structure of ACCinto the following -- 47SMBS, Mahatma Gandhi University, Kottayam
  48. 48. ACC Limited – Madukkarai Cement Works DEPARTMENTAL ANALYSIS → PRODUCTION DEPTT. → QUALITY CONTROL DEPTT. → FINANCE DEPTT. → Time Keeping Deptt. → HRM DEPTT. → → Safety Deptt. → INTERNAL AUDIT DEPARTMENT → AFR DEPTT. Security Deptt. → PROCUREMENT DEPTT. → GENERAL STORES DEPTT. → → ENVIRONMENT DEPTT. → CSR DEPTT. → MAINTAINANCE DEPTT. → SYSTEM DEPTT. → MARKETING DEPTT. 48SMBS, Mahatma Gandhi University, Kottayam
  49. 49. ACC Limited – Madukkarai Cement WorksPRODUCTION DEPARTMENTProduction Department is considered as the heart of an organization. It is an area of workwhere the core products of an organization take its physical form.ACC have a well structured as systematic Production Department which is engaged in theprocess of cement and concrete production.The Production Department of ACC concentrate on ‗4S‘ system of management, they areas 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 & SeisoOBJECTIVE OF PRODUCTION DEPARTMENTThe main objective of Production Department is – ―To produce a quality orientedcement and concrete through a well structured production procedure‖. 49SMBS, Mahatma Gandhi University, Kottayam
  50. 50. ACC Limited – Madukkarai Cement Works PLANT LAYOUTMap –key00. Limestone Quarry and Crushing plant01. Limestone Stockpile02. Additives Hopper03. Additives Storage04. Raw Mill Building 50SMBS, Mahatma Gandhi University, Kottayam
  51. 51. ACC Limited – Madukkarai Cement Works05. Blending and Storage Silo06. Pre Heater07. Gas Conditioning Tower and ESP08. Kiln09. Cooler10. Deep Bucket Conveyor11. - 12. Clinker/Gypsum storage13. Coal Mill Building14. Cement Mill and Bag House15. Cement Storage Silo16. Packing and Dispatch17. Central Control RoomPlant lay out simply refers to the arrangements of the machines, equipments and otherphysical facilities within the factory premises. ACC Plants usually follow ―ProcessLayout‖ i.e. similar machines are placed in one place (work area) according to theoperation or functions they perform. 51SMBS, Mahatma Gandhi University, Kottayam
  52. 52. ACC Limited – Madukkarai Cement Works MINING DEPARTMENT CRUSHER DEPARTMENT BALL-MILL RAW-MILL DEPARTMENT DEPARTMENT (LOW- GRADE SLURRY) (HIGH -GRADE SLURRY) FLOTATION DEPARTMENT MIXER BASIN 1 & 2 MIXER BASIN 3 & 4 FILTERATION KILN DEPARTMENT DEPARTMENT CEMENT-MILL DEPARTMENT PACKING HOUSE DEPARTMENT DESPATCH SECTION 52SMBS, Mahatma Gandhi University, Kottayam
  53. 53. ACC Limited – Madukkarai Cement WorksORGANIZATION CHART OF PRODUCTION DEPARTMENTThe Production Department of ACC is provided with adequate, experienced andcompetent personnel for carrying out the activities of production department. Theorganization chart of the department is shown below: GENERAL MANAGER PRODUCTION MANAGER ASST. MANAGER ASST. MANAGER (PLANT) (QC) WORKS WORKS SUPERIDENT- I SUPERIDENT-III ENGINEER (QC)--I ENGINEER (QC)--II WORKS SUPERIDENT-II 53SMBS, Mahatma Gandhi University, Kottayam
  54. 54. ACC Limited – Madukkarai Cement WorksPRODUCTION TURNOVERACC is a reputed and strong manufacturer of cement within the country.ACC strive to retain their position as India‘s foremost manufacturer of cement andconcrete with a countrywide bouquet of 16 modern cement factories that have a capacityof 26 million tones per annum to be increased to 30 million tones by the end of 2010.Hence overall ACC‘s annual production capacity is 26 million tones per annum. Theannual production capacity of ACC Madukkarai plant is 7.5 million tones per annum witha semi-wet technology of manufacturing. Earlier at the starting stage its productioncapacity was only 0.6 million tones per annum. 54SMBS, Mahatma Gandhi University, Kottayam
  55. 55. ACC Limited – Madukkarai Cement WorksDEPARTMENTAL FUNCTIONThe functioning of Production Department of Madukkari Plant of ACC is somewhatdifferent from other plants of ACC. This is basically because the basic raw materialobtained from the mines of Madukkari plant is of low quality. Hence in order to increaseits quality up to the mark, Madukkarai plant practices the semi wet process along withwet and dry process.In other plants of ACC they use to follow wet process and dry process only but inMadukkarai plant of ACC they undergo through wet process – semi wet process – dryprocess.The production department of Madukkarai plant is basically divided into various sub-departments. These sub-departments are known as Zones. Each zone of productiondepartment have a zone name, owner (head of the sub-department). The following arethe various zones of production department---- ZONAL -- STRUCURE ZONE AREA ZONE—PEARL MINING DEPARTMENT ZONE—RUBY CRUSHER DEPARTMENT ADDITIVE STORAGE HOPPER ZONE—SAPPHIRE BALL-MILL DEPARTMENT FLOTATION DEPARTMENT RAW-MILL DEPARTMENT ZONE—DIAMOND MIXER-BASIN NO. 1 & 2 MIXER BASIN NO. 3 & 4 CENTRAL CONTROL ROOM FILTERATION DEPARTMENT ZONE—EMERALD KILN DEPARTMENT CLINKER/GYPSUM STORAGE COAL MILL BUILDING ZONE—CORAL CEMENT- MILL DEPARTMENT CEMENT STORAGE SILO ZONE—GARNET PACKING HOUSE DEPARTMENT DESPATCH SECTION 55SMBS, Mahatma Gandhi University, Kottayam
  56. 56. ACC Limited – Madukkarai Cement WorksThe 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. 56SMBS, Mahatma Gandhi University, Kottayam
  57. 57. 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 57SMBS, Mahatma Gandhi University, Kottayam
  58. 58. 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 58SMBS, Mahatma Gandhi University, Kottayam
  59. 59. 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. 59SMBS, Mahatma Gandhi University, Kottayam

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