Acc limitedbychris jose

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: Dr. K. Sreeranganadhan
Date: DIRECTOR

2
SMBS, Mahatma Gandhi University, Kottayam


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

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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

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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.

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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

6

8 CHAPTER--VIII CONCLUSION & 179
BIBLIOGRAPHY

CHAPTER I

INTRODUCTION

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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

 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

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

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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

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 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 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 industry‘s 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, industry‘s 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
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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

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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 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 2008—2009 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

Figures in Million Tones
2010-11 Apr—Nov 2011
Domestic Consumption 178 100
Year –on-Year Growth(%) 8.4 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 2010-11 2009-10
(April—January) in MT
Cement Production 130.67 115.52
Cement Despatches 129.97 115.07

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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 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

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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

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


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 Cement

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

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Limestone

Raw
Silica 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

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

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

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
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

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CHAPTER III

COMPANY PROFILE

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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 country‘s 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 co-
processing.

24

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. ACC‘s 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

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 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 COMPANY

ACC has an effective Quality Policy System

 Manufacture Quality Products.
 Customer satisfaction.
 Continual improvement in quality.

VISION STATEMENT OF COMPANY

ACC‘s Vision vividly declares the company‘s 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


The ―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 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.‖

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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

ACC‘s 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.

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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

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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

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 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 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 India‘s 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 BLENDED
PORTLAND CEMENT
CEMENT

PORTLAND
SLAG CEMENT

31


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.
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,
32

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, ACC‘s 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

―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

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 30-
40 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 high-
cost 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 ACC‘s 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


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


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

37


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

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

38

ACC - MILESTONES
1936 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 Bombay
1947 India‘s first entirely indigenous cement plant established at Chaibasa in
Bihar
1952 Village Welfare Scheme launched
1955 Sindri cement works used the waste product calcium carbonate sludge from
fertilizer factory at Sindri.
1956 Bulk Cement Depot established at Okhla, Delhi
1957 Technical training institute established at Kymore, Madhya Pradesh.
1957 Katni Refractories
1961 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 Thane
1965 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.

39


1968 ACC supplied and commissioned one-million-tonne iron ore pelletising
plant ordered by TISCO
1971 Manufacture of Whytheat Castables A, K, C and Cal-Al-75
1973 Take-over of The Cement Marketing Company of India (CMI)
1977 ACC receives ASSOCHAM first national award for the year 1976 instituted
for outstanding performance in promoting rural and agricultural
development 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.

40


2002 ACC wins PHDCCI Good Corporate Citizen Award
2003 IDCOL Cement Ltd becomes a subsidiary of ACC
2004 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-
December
2006 Subsidiary companies Damodhar Cement & Slag Limited, Bargarh Cement
Limited and Tarmac (India) Limited merged with ACC
2006 ACC announces new Workplace policy for HIV/AIDS
2006 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 Industry
2006 New corporate brand identity and logo adopted from October 15, 2006
2006 ACC establishes Anti Retroviral Treatment Centre for HIV/AIDS patients at
41


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 Nadu
2007 Sumant Moolgaokar Technical Institute completes 50 years and reopens
with new curriculum
2008 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 2008
2008 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 Practices
2009 ACC is allotted coal blocks in Madhya Pradesh and West Bengal.
2009 ACC's 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 status
2010 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
2011 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

2011 Central Control Room Building at ACC Chanda Plant, Maharashtra set up
42


as a Green building, the first of its kind in an industrial environment

ACC AWARDS
ACC was the first recipient of ASSOCHAM‘s 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


 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

 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


CHAPTER IV

DEPARTMENTAL ANALYSIS

46



The brand ACC enjoys a high level of equity in the Indian market. ACC‘s 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 ACC‘s 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



→ 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.

48


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


PLANT LAYOUT

Map –key

00. Limestone Quarry and Crushing plant

01. Limestone Stockpile

02. Additives Hopper

03. Additives Storage

04. Raw Mill Building
50

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


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
52


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 ASST. MANAGER
(PLANT) (QC)

WORKS WORKS
SUPERIDENT- I SUPERIDENT-III ENGINEER (QC)--I

ENGINEER (QC)--II
WORKS
SUPERIDENT-II

53


PRODUCTION TURNOVER

ACC is a reputed and strong manufacturer of cement within the country.

ACC strive to retain their position as India‘s 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 ACC‘s 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


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 sub-
departments. 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 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

55

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

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

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

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

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

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 ACC‘s 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

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


Cumulative

January-April 2012


January-April 2011


62


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


MANAGER PRODUCTION
↓
DY. / JT. MANAGER(QC)
↓
ASST. MANAGER (QC)
↓
↓
JR.ASST.ANALYST MATERIAL W/BRIDGE
↓ ↓ HANDLING TALLY CHECKER
GAUGERS TESTERS SUPERVISOR
↓ ↓ ↓
TESTING TESTING YARD
SAMPLE SAMPLE SUPERVISOR
BOYS BOYS ↓
HEOS

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

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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

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 in-
coming 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 Range
Desired Acceptable
Limestone, Walayar Total Carbonate 72 – 76 % 68% minimum
Limestone, Madukkarai Total Carbonate 74 – 80 % 72% minimum
Bauxite A12 03 35 – 45 % 30% minimum
Si 02 10 – 15 % 18% maximum
Iron Ore Fe2 03 60 – 95% 60% minimum
Laterite A12 03 30 – 45 % 25% minimum
Si 02 10 – 15 % 18% maximum
Fly Ash Combustibles 2–7% 12% maximum
Specific
surface(M2/kg.) 350 – 400 320 minimum
Gypsum Purity as Ca SO4 , 75 – 95 % 65% minimum
2H2O
Chloride content 0.3 – 0.8 1% maximum
Coal (imported) Ash content 10 – 15% 20% maximum

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.
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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

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 raw-
material 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 non-
conformance 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 Parameters Frequence of Frequence of Purpose of
Sampling testing testing
Lime stone TC As and when As and when To access
Drill cut received from received from quality of
mines mines limestone
before blast
Bauxite / Laterite Moisture Daily receipts Daily receipts To access
A12 03 source wise quality and
S1 02 acceptance
Size
Full Chemical Daily receipts Fortnightly Quality
Analysis source wise composite Assurance
sample
Iron Ore Moisture Daily receipts Daily receipts To access
Fez 03 source wise quality and
acceptance
Full chemical Daily receipts Fortnightly Quality
analysis Source wise composite Assurance
sample
Gypsum Moisture Daily receipts Daily receipts To access
Purity source wise quality and
Chloride acceptance
Full chemical Daily receipts Fortnightly Quality
analysis Source wise composite Assurance
sample
68

Fly ash Specific Daily receipts Weekly Suitability for
surface, LR, Source wise composite cement
CR, drying sample quality
shrinkage &
full chemical
analysis
Coal Moisture, Daily receipts Ratewise To access
proximate sample quality
analysis
including CV
Lignite/alternative Moisture ash Daily receipts Dailywise To access
fuel quality.

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

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


Acceptance criteria / control of important parameters at various stages of cement
manufacturing process:

Table (b)

In-process Materials

Desired Acceptable
Flotation Mill fuels Residence on
72 Mesh 4.5 – 6% 6.5% maximum
170 Mesh 25 – 30% 35% maximum
Flotation Rejects Total Carbonate 20 – 30% 35% maximum
High Grade Slurry Residence on 72 Mesh 1.5 – 3.0% 4.0% maximum
Residence on 170Mesh 15 – 22% 25% maximum
Moisture content 32 – 34% 35% maximum
Total carbonate content 80 – 85% 78% minimum
Low Grade Slurry Residence on 72 Mesh 2.5 – 4.5% 5.0% maximum
Total carbonate content 35 – 75% 40% minimum
Kiln Feed Slurry Residence on 72 Mesh 2.8 – 3.2% 3.5% maximum
Ca O 43 – 45% 43.5% min.
Fez 03 2.5 – 3.2% 2% minimum
A12 03 2.7 – 3.5% 2.5% minimum
Filter cake Moisture content 13 – 17% 18% maximum
Fine coal kiln Moisture content 3 – 6% 8% maximum
Residence on 72 mesh 0.5 - 5.5% 5.5% maximum
170 mesh 5 – 26% 26% maximum
Clinker Litre weight 108-1180 1000 Min.
Gram/ltr.
Free Ca O 1.5 – 2.5% 3.5% Max.
A12 03 5.0 – 6.0% 4.5% Min.
Fez 03 3.7 - 4.3% 3% Min.
CaO 64.0-65.0 63.0%Min.

70


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 ½ 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.
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 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 ½ 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 ½ 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 ½ 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


 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 16 mega Pascal 33 grade (now removed)
3 days 22 mega Pascal 43 grade

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

73

Acceptance criteria/control of important parameters of various stages of cement
manufacturing process.
Table (c)

Finished Products

Desired Acceptable
Cement Specific surface(m2/kg)
33 Grade OPC 290 I 30 225 Min.
43 Grade OPC 310 I 30 225 Min.
PPC 340 I 30 300 Min.

Residence on 45 Mesh
33 Grade OPC 18 – 28% 30% Max.
43 Grade OPC 18 – 28% 30% Max.
PPC 15 – 20% 25% Max.

SO3 Content for
OPC 1.7 – 2.7% 3.0% Max.
PPC 1.5 – 2.5% 3.0% Max.

Setting Times
OPC (33 & 43) 30 Min.

Initial 80 – 140 30 Min.
Final 130 – 220 600 Max.

Setting Time-PPC

Initial 90 – 160 30 Min.
Final 150 – 240 600 Max.

Composite strength-3 days

OPC 33 23-28 Mega Pascal 16 M.Pa. Min.
OPC 43 27-32 Mega Pascal 23 M.Pa. Min.
PPC 25-30 Mega Pascal 16 M.Pa. Min.

Composite strength-28 day

OPC 33 grade 43-48 Mega Pascal 33 M.Pa Min.
OPC 43 grade 48-53 M. Pascal 43 M.Pa Min.
PPC 45-50 M. Pascal 33 M.Pa Min.

74


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 Details of Parameters to Frequency of Frequency of
stage sample be tested sampling Test
Packing House Cement for Specific surface Hourly Twice in a
Dept. each type Co O & SO3 shift
separately
Complete Daily/Weekly Daily/Weekly.
chemical & composite
Physical Tests sampling
as per BIS‘s ST

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


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

 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 Parameter Frequency

OPC-43 Grinding Specific Surface Daily Average
PPC – Grinding Specific Surface Daily Average
OPC 43 Loading 3 days compressive strength Daily Average
PPC Loading 3 days compressive strength 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 raw-
materials, 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


Table (d)

Corrective/Preventive Action

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


FINANCE DEPARTMENT
The brand ACC enjoys a high level of equity in the Indian market. ACC‘s
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 company‘s 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.


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 Accounts Officer Accounts Officer
Officer (Sales Accounts) (Cash Section)
( Books-Section)

Accounts Officer
(Establishment) Supdt. Accounts
Office Asst.
79


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


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


82


83


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

2010 2009
Rs. Rs. Rs.
Crore Crore Crores
AUTHORISED
22,50,00,000 Equity shares of Rs. 10 each 225.00 225.00
10,00,00,000 Preference share of Rs. 10
each 100.00 100.00
325.00 325.00
ISSUED
18,87,88,179(Prev.year-18,87,29,706) 188.78 188.72
Equity share of Rs. 10 each

SUBSCRIBED
18,77,40,292(Prev.year-18,76,81,819) 187.74 187.68
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 0.20 0.20
187.94 187.88
TOTAL 187.94 187.88

84

b) Working Capital Structure

ACC‘s working capital requirement is mainly meet out through two sources.

i) Long Term non-convertible debenture
ii) 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 company‘s 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 As at As at
31.12.2011 31.12.2010
Tangible Assets
1. Freehold Land 148.72 100.54
2. Leasehold Land 31.04 29.04
3. Building 576.82 431.54
4. Machinery, Plant and Kilns 2539.98 2179.37
5. Road , Bridges and Fence 87.23 78.62
6. Water Works 6.74 6.08
7. Railway Sidings 39.04 29.67
8. Rolling Stock 43.75 19.65
9. Furniture, Fixtures and Equipment 77.38 69.21
10. Motor car, trucks, etc. 10.52 10.72
11. Electrical Installations 567.88 491.72
Sub Total 4129.1 3446.16
Intangible Assets
12. Computer Software 10.17 23.54
Mining Rights 19.02 -
Sub Total 29.19 23.54
TOTAL 4158.29 3469.70
Previous Year 3469.70
14. Capital Work-in-Progress 2156.21 1602.86
(including Capital advance Rs. 201.74 Crore)
Previous Year - Rs. 356.33 Crore)
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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 2010
Sch. Rs. Crore Rs. Crore Rs. Crores
SOURCES OF FUNDS:
Shareholders Funds:
Share Capital 1 187.94 187.88
Share Application Money, pending allotment 0.08 -
Reserve and Surplus 2 5,828.20 4,739.85
6,016.22 4;927.73
Loan Funds
Secured Loans 3 550.00 450.00
Unsecured Loans 4 16.92 32.03
566.92 482.03

Deferred Tax Liabilities(Net) 349.25 335.79
(Refer Note-14(b)

TOTAL FUNDS 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


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

DIVIIDEND ISSUED

2011 2010
Rs. Rs. Rs.
Sch. Crore Crore Crores
Interim Dividend 187.80 187.65
Proposed Dividend 244.06 187.68
Dividend Distribution Tax 73.38 63.79
Previous year dividend 0.02

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

SHAREHOLDING PATTERN AS ON MARCH 31, 2012

Category of Shareholder No. of Total Percentage
Share- No.of of Share
holders Shares Capital
(A) Shareholding of Promoter and
Promoter Group
1 Indian
(a) Individual/Hindu Undivided Family 0 0 0
(b) Central Government / State Govt.(s) 0 0 0
(c ) Bodies Corporate 1 93888120 50.01
(d) Financial Institutions/Banks 0 0 0
(e) Any other (specify) 0 0 0
Sub-Total(A)(1) 1 93888120 50.01

2 Foreign
(a) Individuals(Non-Resident Individuals/ 0 0 0
Foreign individuals)
(b) Bodies Corporate 1 541000 0.29
(c ) Institutions 0 0 0
(d) Any Other(Specify) 0 0 0
Sub Total(A) (2) 1 541000 0.29
Total Shareholding of Promoter and
Promoter Group(A)=(A)(1)+(A)(2) 2 94429120 50.30

(B) Public Shareholding
1 Institutions
(a) Mutual Funds/UTI 132 4236414 2.26
(b) Financial Institutions/Banks 123 17856708 9.51
(c ) Central Govt./State Govt.(s) 4 287815 0.25
(d) Venture Capital Funds 0 0 0
(e) Insurance Companies 0 0 0
3
(f) Foreign Institutional Investors 385 34269005 18.25
(g) Foreign Ventures Capital Investors 0 0 0
(h) Any other (specify) 0 0 0
Sub Total(B)(1) 644 56649942 30.17
2 Non-Institutions
(a) Bodies Corporate 1329 9730215 5.18
(b) Individuals
i. Individual shareholders holding
nominal share capital upto Rs. 1 lakh 98615 21962894 11.70
ii. Individual shareholders holding
nominal share capital in excess 126 3315233 1.77
of Rs. 1 lakh.

88



(c ) Any Other (specify)
i. Limited Liability partnership 2 565 0.00

ii. Shares held by Pakistani Citizens
vested with the Custodian of
Enemy property 172 385965 0.21
iii. Other Foreign Nationals 4 1130 0.00
iv. Foreign Bodies 0 0 0
v. NRI/OCBs 1976 743368 0.40
vi. Clearing Members/Clearing
House 130 407797 0.22
vii. Trusts 36 664785 0.22
Sub-Total (B)(2) 102390 36666294 19.53
Total Public
Shareholding(B)(1)+(B)(2) 103034 93316236 49.70
TOTAL(A)+(B) 103036 187745356 100.00
Shares held by Custodians and
C) against
which Depository Receipts have
been
issued. 0 0 0
GRAND TOTAL(A)+(B)+(C ) 103036 187745356 100.00

89

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

1 Ambuja Cement India Pvt.Ltd.(Promoter) 86191067 86732067 46.20
Holderind Investments Ltd.(Promoter) 541000
2 Life Insurance Corporation of India 31681260 16.88
3 ICICI(Prudential Life Insu.Co.Ltd.) 4984776 2.66
4 J.P.Morgan Asset Management(Europe)
S.A.R.L A/c JP Morgan Funds Emerging
Market Equity Fund 3067219 1.63
TOTAL 126465322 67.36

SOURCES OF FINANCE

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

90


FINANCIAL HIGHLIGHTS

Rs.
Crore
2011 2010 2009 2008
INCOME STATEMENT
Net Sales 9,341 7,717 8,027 7,283
Operating EBIDTA 1,921 1,1812 2,643 1,899
Profit Before Tax 1,540 1,461 2,294 1,737
Profit After Tax 1,325 1,120 1,607 1,213

BALANCE SHEET
Net worth 7,192 6,469 6,016 4,928
Borrowings 511 254 567 482
Net Fixed Assets 6,643 6,645 6,315 5,073
Current Assets 3,618 2,753 2,294 2,760
Current Liabilities 3,664 3,746 3,152 2,766
Capital Employed 8,221 7,355 6,932 5,746

SIGNIFICANT RATIOS
Operating EBIDTA/ Net Sales 20% 23% 33% 26%
Return on Capital Employed 19% 25% 49% 40%
Return on Net Worth 18% 17% 27% 25%
Current Ratio 0.99 0.73 1 1
Debts Equity Ratio 0.07 0.08 0 0.1
Price Earning Ratio 16.29 18.04 10 7.39
Dividend Yield Ratio 2% 3% 3% 4%
Net Worth per Share(Rs.) 385 345 320 263
Net Sales per Share(Rs.) 28.00 30.50 428 388
Basic Earnings per Share(Rs.) 70.59 59.66 85.6 64.63

91


HUMAN RESOURCE DEPARTMENT
The true index to a ACC‘s 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.

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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 SENIOR HR
OFFICER OFFICER

Sr. Superident
Junior Officer Junior Officer Civil
Security Safety Department

Junior Officer Junior Officer Sr. Superident
Recruitment & Establishment Time-Keeping
Training Section Department

93


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 ACC‘s
classification of employees.

A) On the basis of employee’s 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
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Employees Classification

Daily paid – Skill employees

Category Skill Level
A Skilled higher
B Skilled upper
C Skilled lower
D Semi-skilled
E Unskilled

Monthly paid Semi-skilled Employees

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

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


 Performance Appraisal

The Company‘s 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 employee‘s 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


Other Performance Appraisal Methods are:

o Letter of Appreciation
o Nomination to external training programmes in India and Abroad.
o Public felicitation and appreciation.
o Best employee/employees of the month awards
o 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 ACC‘s 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 ACC‘s
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


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 Uniform and footwear facilities
o Canteen facility
o School bus facility
o Rest Hall and shelter facility
o Swimming pool facility
o Co-operative society
o Sports club

 Training & Development

ACC‘s 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 (b) Development Cell

Training Cell:

Training is imparted to take care of an individual‘s 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.
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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

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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.
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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.

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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.

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 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.

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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 employer‘s 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:

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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

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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 Company‘s 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 Annual
increment
Maximum Minimum
A Grade 4040 2220 91
B Grade 3580 2180 70
C Grade 3199 2149 52.50
D Grade 2893 2123 38.50
E Grade 2670 2110 28
Grade VII 5090 2290 140
Grade VI 4785 2265 126
Grade V 4480 2240 112
Grade IV 4175 2215 98
Grade III 3870 2190 84
Grade II 3570 2170 70
Grade I 3270 2150 56
Tally Checker 3045 2135 45.50

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 Other pays

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

Other pays Monthly Pay
D.A. 7259.60
Bonus 20% (Basic pay + DA)
HRA 125 (C-D-E), 135 (A-B)
CA 950
TPM 151
Night Shift Allowance 12.5% (Basic Pay x No.of nights)
Washing Allowance 20
Periodical allowances 185
Educational allowance 500
Quarter Rent 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. Employer‘s 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) .

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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.

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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 Shift Time
A Shift 12 A.M. to 8.00 A.M.
B Shift 8 A.M. to 16.00 P.M.
C Shift 16.00 P.M. to 12.00 A.M.
Half Hour meal time for each shift
General Shift(For non-technical employees) 7.30 A.M. to 16.30 P.M.
Meal Time 12 P.M. to 13 P.M.

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

Safety Department

ACC‘s 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:

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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

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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. 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.
8. 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.
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 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 fighting‘s.

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

ACC‘s 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
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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 pre-
processing platforms at different locations.

ORGANIZATION CHART

The AFR Department consists of efficient and highly skilled personnel‘s enjoying
suitable and competent positions. The following is the organization chart of AFR
department of ACC Ltd.

AFR DIRECTOR

SUPPORT
REGIONAL FUNCTION
BUSINESS
HEADS

REGIONAL
COODINATORS
SUPPLY
CHAIN
REGIONAL MANGER- I
PLANT PLANT CO-
COODINATORS ORDINATOR

SUPPLY
CHAIN
MANAGER --II

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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.


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
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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, co-
processing 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
Sample solution
Evaluation Submit to
Authorities

Undertake Trial
Burn
Finalize usage
plan

Co-processing
Clearance from agreement with
authorities by AFR customer
India & customer
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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.

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Mineral Component and Clinker Factor

2011 2010
Clinker factor % 67.58 69.43
Blast Furnace Slag 1.86 1.75
Consumption(Million
tones/annum)
Coal Fly Ash 3.54 2.99
Consumption(Million
tones/annum)

In 2006, the company was felicitated by three ministries of the Government
of India (Power, Environment & Forests and Science & Technology) for
registering the country’s 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

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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.

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PROCUREMENT DEPARTMENT
ACC‘s 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 company‘s 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.


The structure of procurement department of ACC is as follows:

PURCHASE MANAGER

ASST. PURCHASE MANAGER

CLERK – I CLERK – II CLERK – III
Receiving Enquiry & Order Processing
Requisitions Quotations & Delivery made

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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.

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 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 company‘s
premises, observe and conform to fair labour practices. The engagement of children and
adolescent labour is not permitted.

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ACC have detailed guidelines for vendor appraisal, registration, approval, rating and de-
listing. 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 TALLY
INDENTING RECEIPTS 123 CHEKER/CLERK--
SMBS, Mahatma Gandhi University, Kottayam WISE



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
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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.

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 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.

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Following records are maintained by stores department.

Sl. Description of record Identification No. Minimum
No. preservation
period
1. Record for stock of HSD oil MKCW/GS/QR/01 1 year
2. Record for retail issue of MKCW/GS/QR/02 1 year
HSD oil
3. For Gas cylinder MKCW/GS/QR/03 1 year
4. Record for item kept under MKCW/GS/QR/04 1 year
safe custody
5. Item sent for repairs, MKCW/GS/QR/05 1 year
reconditioning etc.
6. Record for outgoing item MKCW/GS/QR/06 1 year
7. Record for items MKCW/GS/QR/07 1 year
rejected/excess supply
returned to supplier
8. Record for Modvat on MKCW/GS/QR/08 1 year
receipt items.
9. Record for scrap sale MKCW/GS/QR/09 1 year
10. Record of training/Internal MKCW/GS/QR/10 1 year
Audit Reports

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.

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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.
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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.

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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

SENIOR JUNIOR
EXECUTIVE (E& I) EXECUTIVE
130 (MECHANICAL)


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.


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.

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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 ACC‘s 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.

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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 2011
NOx 929.51
SO2 105.06
NH3 1.50
DUST 95.12
ORGANICS 6.53
MERCURY 0.02
CHROMIUM 0.02
DIOXINS/FURANS 0.003-0.015

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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.
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 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.

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Biodiversity

Among the most satisfying results of the company‘s 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 ACC‘s
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

ACC‘s 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.

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CORPORATE SOCIAL RESPONSIBILITY DEPARTMENT (CSR)

Today ACC define Corporate Social Responsibility as the way a
company balances it‘s 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 company‘s 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 company‘s 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 Company‘s main business.

A new CSR Department was introduced in ACC in 2006. The Company‘s 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.

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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

CSR—HEAD CORPORATE
CELL

DEPUTY HEAD

PLANT HEADS REGIONAL
HEADS

PLANT CSR REGIONAL CSR
COORDINATOR COORDINATOR


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

their plants and mines. At most of ACC‘s 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 company‘s 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 & NGO’s 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, women‘s
empowerment through capacity building and livelihood generation, education and
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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 ACC‘s 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 ACC‘s 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 country‘s 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

cost by NACO. The Centre is the first outside the Government sector to be included in
the list of NACO‘s 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:

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CHIEF MANAGER
MECHANNICAL

HEAD PLANNER

CIVIL PLANNER MECHANICAL E&I PLANNER
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).

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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 planning—mills/crusher/cell rows/filtration
 SAP –plant maintenance order
i. Bill of material preparation
ii. Material creation/ codification
 Report preparation

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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

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

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.


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.

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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.


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.

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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:

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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.

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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— SUB—PLANNER SUB—PLANNER
PLANNER MM PP
FICO

SUB—PLANNER SUB—PLANNER SUB—
SD PM PLANNER
HR
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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.

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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)

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Intranet Portal System

The Company has an Intranet Portal called ‗Accelerate‘ which is dedicated to employees.
The portal‘s 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 can‘t 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 .

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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 haven‘t 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.

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MARKETING DEPARTMENT
ACC‘s brand name is synonymous with cement and enjoys a high level of
equity in the Indian market. ACC‘s brand name is maintained and developed by a well
designed marketing team. A range of ACC‘s 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.

ACC‘s marketing; sales and distribution processes are industry standards. Although we
take immense pride in having supplied some of India‘s most admired projects, ACC id
essentially a people‘s 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 semi-
urban 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‖

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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 ACC‘s 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 REGIONAL MANAGER
(Eastern Region) (Northern Region)

REGIONAL
REGIONAL MANAGER MANAGER
(Southern Region) (Western Region)

BRANCH BRANCH BRANCH BRANCH
MANAGER MANAGER MANAGER MANAGER

SALES SALES SALES SALES
MANAGER MANAGER MANAGER MANAGER

SALES SALES SALES SALES
OFFICES OFFICES OFFICES OFFICES

Kolkata Bangalore New Delhi Bhopal
Asansol Cochin Chandigarh Hubli
Dehradun Lucknow Mumbai
Patna Kanpur Pune
Bhunaeshwar Sekendrabad
Ranchi Nagpur
Raipur

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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 MAJOR MARKETS MAKET SHARE (%)
Western region Maharashtra 16.3
Northern region Punjab 31.4
Central region Uttar Pradesh 32.3
Southern region Karnataka 22.9
Eastern region West Bengal 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.

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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 Market Share (%)
Grasim Industries Ltd. 18.38
Ambuja Cements Ltd. 16.34
ACC Ltd. 14.21
Ultratech Cement Ltd. 12.13
Century textiles& Industries 7.89
India Cements Ltd. 6.23
Birla Corporation Ltd. 5.04
Madras Cements Ltd. 3.34
Shree Cement Ltd. 3.10
Dalmia Cement Ltd. 2.64
Prism Cement Ltd. 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 countrywide 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
ACC‘s 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. ACC‘s 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 company‘s supply chain is to ensure uninterrupted supply of
high quality cement and concrete backed by efficient logistics and transportation.

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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.

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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. It‘s 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.
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SALES UNIT HIERARCHY

The hierarchy of sales unit is illustrated below:

SALES HEAD

ACVERTISEMENT ADMIN
CSS AND BRANDING
FINANCE LOGISTICS
INCHARGE INCHARGE INCHARGE INCHARGE 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 END CUSTOMER
DEALER)*

END CUSTOMER

* Three sub dealers [authorized dealers] – Premium Dealer
159

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 don‘t 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)

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CUSTOMERS

ACC is essentially a people‘s 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

CUSTOMER’S RELATIONS

ACC is India‘s 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
company‘s 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—

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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
ACC‘s 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 one‘s ―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.

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5. ACC Help Literature

The ACC Help Centre distributes specially design booklets on each stage of
building one‘s ― 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 country‘s 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
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representatives visit the complainant‘s site at the earliest and, if found
necessary, samples are drawn for testing at the company‘s 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 non-
conformance of product and the genuinty of complaints.
Customer is compensated or material is replaced if test prove any non-
conformance and then non-conformance is recorded for further references and
corrective/preventive actions to avoid reoccurrences of same.

COMPETITORS

ACC‘s 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—
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o JK Group
o Shree Cements Ltd.
o India Cements Ltd.
o Jaypee Group
o Madras Cemets Ltd.
o Birla Corporation
o Century cements Ltd.
o Binani cements Ltd.
o Dalmia cements Ltd.
o 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.

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ACC has introduced a new product in the market known as Masonary Cement. The
composition of Masonary Cement is as follows—Clinker + Low Gypsum + Flotation
Rejects.
They are used for plastering purposes only. It provides shine and finishing. It have a low
strength hence it can‘t 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

 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
Rs. Lakhs
 Capital 37
 Recurring (Gross) 325
 Total 362
 Total R&D expenditure 0.05%

5. Foreign Exchange earnings and outgo
Rs. Lakhs
 Foreign exchange earned 5561
 Foreign exchange used 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 Company‘s
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

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 company‘s 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


CHAPTER V
SWOT-ANALYSIS

169


SWOT-ANALYSIS

SWOT ANALYSIS OF ACC LIMITED

SWOT Analysis is under taken to understand the firm‘s 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

ACC‘s 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:

 People’s 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

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 India‘s 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 people‘s 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
follows-
171


 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
ACC‘s 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. It‘s 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

Indian cement industry act as a opportunity for brands like ACC. Some of such
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 non-
ferrous 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

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


CHAPTER VI
EVALUTION AND SUGGESTIONS

175


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

 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


CHAPTER VII
LEARNING EXPERIENCE

178


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


CHAPTER VIII
CONCLUSION
&
BIBLIOGRAPHY

180


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


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.

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