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

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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

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