A report on the basis of reserch

1. SUBMITTED BY –AJIT GUPTA
A project report on ACC
cement.

2. 1
Table of Contents
SECTOR INFORMATION.......................................................................................................................2
Brief about the sector.....................................................................................................................2
Market sector.................................................................................................................................2
Growth of the sector.......................................................................................................................3
Cementindustry to grow at about 7% in FY17...............................................................................4
COMPANY INFORMATION...................................................................................................................5
History...........................................................................................................................................5
Milestones .....................................................................................................................................5
SWOT Analysis....................................................................................................................................5
Strengths........................................................................................................................................5
Weaknesses ...................................................................................................................................6
Opportunities.................................................................................................................................7
Threats...........................................................................................................................................7
Competitor Analysis............................................................................................................................8
Current CEO.......................................................................................................................................8
Harish Badami ................................................................................................................................9
Product portfolio................................................................................................................................9
43 Grade cements...........................................................................................................................9
53 Grade cement............................................................................................................................9
Blended cement.............................................................................................................................9
Portland slag cement ......................................................................................................................9
REFERENCES.....................................................................................................................................11
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3. 2
SECTOR INFORMATION
Brief about the sector
India is the second largest
producer of cement in the
world. The cement industry
of India provides
employment to a lot of
people in India. The cement
industry of India has
attracted a lot of domestic
as well as international
investment after the
deregulation in the year
1982. As India is a
developing nation, therefore
it attracts a lot of investment
in the cement industry as
India is need of cement for
construction of cities and
development of smart cities.
several foreign players such
as Lafarge-Holcim,
Heidelberg Cement, and
Vicat have invested in the country
in the recent past. A significant
factor which aids the growth of
this sector is the ready availability
of the raw materials for making
cement, such as limestone and
coal.
Market sector
The housing sector is the biggest demand driver of cement, accounting for about 67 per cent of
the total consumption in India. The other major consumers of cement include infrastructure at
13 per cent, commercial construction at 11 per cent and industrial construction at 9 per
cent.The Indian cement industry is dominated by a few companies. The top 20 cement
companies account for almost 70 per cent of the total cement production of the country. A
total of 188 large cement plants together account for 97 per cent of the total installed capacity

4. 3
in the country, with 365 small plants account for the rest. Of these large cement plants, 77 are
located in the states of Andhra Pradesh, Rajasthan and Tamil Nadu.
Growth of the sector
The cement sector of India is expected to grow because of government’s efforts in
development of the country leading various infrastructure projects. Because of this reason the
demand for cement is expected to grow to 550-600 Million Tonnes by the year 2025. On the
back of growing demand, due to increased construction and infrastructural activities, the
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5
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2 1 1 1 1 1
0
2
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6
8
10
12
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No. of plants
712
440
330 320
240
150 120 120 56 30
0
100
200
300
400
500
600
700
800
Capacity
Capacity

5. 4
cement sector in
India has seen many
investments and
developments in
recent
times.According to
data released by the
Department of
Industrial Policy and
Promotion (DIPP),
cement and gypsum
products attracted
Foreign Direct
Investment (FDI)
worth US$ 3.117
billion between April
2000 and September
2016. One of the
news report which tells about the growth of cement sector is stated below.
Cementindustryto growat about 7% in FY17: The Indian cement industry is expected to grow
at 6-7 per cent in FY 2017-18, because of heavy focus on development of Infrastructure,
Increased focus and spending on agriculture, infrastructure, affordable housing and cement
concrete roads would be major contributors to the rise in demand. Government initiatives like
smart cities and urban infrastructure development along with the implementation of Goods
and Services Tax (GST) would bring major growth opportunities to the sectori.

6. 5
COMPANY
INFORMATION
History
The historical part of ACC
cement is very interesting. It
was in the year 1936 when 10
cement manufacturing company
come under one Umbrella
Company and formed a merger.
It was 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. 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.y's nationalist pride that touched all walks of life -
including trade, commerce and business.
Milestones
Established in the year 1936, the journey of ACC cements has been very eventful. Till date every
decade has seen ACC cement taking pioneering steps not only in concrete and infrastructural
development but also in the areas of corporate development, sustainable development and
also social volunteering.
SWOT Analysis
Strengths
Solid brand equity
Winning the super brand equity award multiple times itself is a part of the strengths of ACC
cement. It has won awards in 2006 & 2007. This proves that the customers are happy with the
brand.
Awards

7. 6
ACC cement has won various awards. It is an ISO 9001 globally recognized company for its
manufacturing practices. Some of the awards won by ACC cement are golden peacock and
green marketing award.
Distribution process
ACC cement has almost 9000 dealers all over the country which deals in the various products of
ACC cement. It has wide distribution network which makes it possible for the company to reach
such a huge people.
CSR Activities
ACC cement is also known for its various CSR activities. The company has its own AIDS
treatment centers and it regularly promotes various newsletters to make people aware about
it.
Maximum manufacturing plants
ACC has the highest numbers of manufacturing plants which are close to 17 whereas Ultratech
and others have lesser.
Weaknesses
Poor Advertising
We can clearlysee thatthe advertisingstrategyof ACCcementisverypoor.Brandslike Ambujacement
has come up withvariousnewadvertisingtechniques.Otherbrandsare comingupwithnew advertising
techniques.
Losing brand equity
ACCcementwonthe superbrand award inthe year 2006 & 2007. But inthe year 2011 Ultratechcement
wonthe award. Moreoveritcan alsobe seenthatstatistically.
Presence inIndia only
ACCis restrictedwithits presence inIndiaandhence itfacescompetitionfromUltratechwhichis
exportingcementinhuge quantity.Withexports,Ultratechcanincrease itsturnovertoa good
percentage.
Availability
Many dealerscomplainthatACChassuchgood tie upwithcorporates,that duringsummerswhen
there ismassive constructiongoingon,mostcementgoestobuildersandthe dealersare notable to
sell.

8. 7
Opportunities
Governmenttie ups
The more government tiesupithave,the more the companywill grow.
Growinginfrastructure of the nation
As Indiaisa developingnationthereforethe infrastructureisalsogrowing.Therefore the cement
industrycanbe termedassun risingindustry.Therefore itcanbe said that ACCcementhas a good
future
Activities
By spendingagoodamountof moneyinadvertisingthe companycangetback itsoldposition.Its
weaknesscanbecome itsstrength.ACCisalreadyknownforitsqualityinmanufacturing.Itcanuse
the same strengthto start exportsacrossthe worldwhichwill helpsitsoverall turnoverandincrease
bottomline.
Cementroads
The governmentof Indiaisputtinga lotof emphasisonthe constructionof cementroads.Thisisthe
reasonwhythe governmentistyingup withthe private cementcompanies.ACCcementhasalot of
opportunitiesbecause of this.
Exports
Its weaknesscanbecome itsstrength.ACCisalreadyknownforitsqualityinmanufacturing.Itcan
use the same strengthto start exportsacrossthe worldwhichwill helpsitsoverall turnoverand
increase bottomline.
Governmenttie ups
The more governmentties upithave,the more the companywill grow.
Threats
Increase in the numberof competitors
The Indiacementindustrynowhasa lot of keyplayers.Companieslike Ambuja,BirlaWhite,Binani
and variousothercompaniesare the keyplayersof the cementindustry.Therefore ACCcements
have to be verycautiousregardingtheirmarketingpolicies.
Price strategyss
Whena company getsa lotof competitors,ithasto enterintothe price strategyof the company.It
meansthat the companyhas to reduce itsprice to attract the customersor retainitsmarketshare.
Thisaffectsthe bottomline of the company.

9. 8
Market Share
Once dealersstartsellingproductswhichare lowerincostbutbetterinquality,thenthe market
share will slowlystarttotilt.ACCand Ambujaare fightingforthe 2nd level butbothof themmight
lose marketshare to these small andregional players.Because theyare regional andfocused,these
playerscanbecome strongin theirregions.
Competitor Analysis
Current CEO

10. 9
Harish Badami
Mr. Harish Badami has been Executive Officer of ACC Limited since February 4, 2017. Mr.
Badami served as the Chief Executive Officer, Managing Director and Executive Director of ACC
Limited from August 13, 2014 to February 4, 2017. Mr. Badami served as Managing Director of
India Unit, President of India Unit, Vice President, General Manager of Paint &
CoatingsMaterials and Packaging and Building Materials of India at Rohm and Haas Company.
He was responsible to lead. He completed his B.Tech and chemical engineering from IIT
Bombay. He completed his management studies from IIM Calcutta.
Product portfolio
ACC cement mainly produces the following products – Portland cement, Bulk cement, Premium
cement, Ready mixed concrete and other concrete related products. Brief descriptions of the
products are as follows-
43 Grade cements
It is one of the most commonly used cement for various construction purposes. It includes the
following – plain and reinforced cement, brick and stone masonry and various other
construction purposes like completion of buildings bridges and other. It is also used for various
other furnishing purposes. Marketing of ACC cement is usually done in 50 kg bags.
53 Grade cement
Thisis an ordinaryPortlandcementwhichsatisfiesthe requirements of IS: 12269-53 Grade.
Produced from high purity gypsum, it provides highstrengthanddurabilitytostructuresbecause of
itsoptimumparticle size distribution,superiorcrystalline structure andbalancedphase composition.
Blended cement
BlendedcementisproducedbymixingandgrindinghigherstrengthordinaryPortlandcementclinker
withhighqualityprocessedflyash –basedon norms setup by the R&D departmentof the
company.Thisunique,value-addedproducthashydraulicbindingpropertiesnotfoundinordinary
cements.Itisavailable inspeciallydesigned50-kgbags.
Portland slag cement
Manufacturedbyblendingandinter-grindingOPCclinkerandgranulatedslaginsuitable proportionsas
perour norms of consistentqualitythis

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12. 11
REFERENCES
ihttps://www.ibef.org/industry/cement-india.aspx