ABOUT CEMENT INDUSTRY

INTRODUCTION OF THE COMPANY

ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's operations are spread throughout the country with 14 modern cement factories, 19 Ready mix concrete plants, 19 sales offices, and several zonal offices. It has a workforce of about 9000 persons and a countrywide distribution network of over 9,000 dealers. ACC's research and development facility has a unique track record of innovative research, product development and specialized consultancy services. Since its inception in 1936, the company has been a trendsetter and important benchmark for the cement industry in respect of its production, marketing and personnel management processes. Its commitment to environmentfriendliness, its high ethical standards in business dealings and its on-going efforts in community welfare programs have won it acclaim as a responsible corporate citizen. In the 70 years of its existence, ACC has been a pioneer in the manufacture of cement and concrete and a trendsetter in many areas of cement and concrete technology including improvements in raw material utilization, process improvement, energy conservation and development of high performance concretes. ACCs brand name is synonymous with cement and enjoys a high level of equity in the Indian market. It is the only cement company that figures in the list of Consumer Super Brands of India. The company's various businesses are supported by a powerful, in-house research and technology backup facility - the only one of its kind in the Indian cement industry. This ensures not just consistency in product quality but also continuous improvements in products, processes, and application areas.

ACC has rich experience in mining, being the largest user of limestone, and it is also one of the principal users of coal. As the largest cement producer in India, it is one of the biggest customers of the Indian Railways, and the foremost user of the road transport network services for inward and outward movement of materials and products. ACC has also extended its services overseas to the Middle East, Africa, and South America, where it has provided technical and managerial consultancy to a variety of consumers, and also helps in the operation and maintenance of cement plants abroad. ACC is among the first companies in India to include commitment to environmental protection as one of its corporate objectives, long before pollution control laws came into existence. The company installed pollution control equipment and high efficiency sophisticated electrostatic precipitators for cement kilns, raw mills, coal mills, power plants and coolers as far back as 1966. Every factory has state-of-the art pollution control equipment and devices.

Plants & Their Capacity:

S. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 Units Bargarh Chaibasa Chanda Damodhar Gagal Jamul Kymore Lakheri Madukkarai Sindri Wadi New Wadi Plant Tikaria State Bargarh Cement Works Chaibasa Cement Works Chanda Cement Works Damodar Cement Works Gagal Cement Works Jamul Cement Works Kymore Cement Works Lakheri Cement Works Madukkarai Cement Works Sindri Cement Works Wadi Cement Works Wadi Cement Works Tikaria Cement Grinding and Packing Plant Capacity (MTPA) 0.96 0.87 1.00 0.53 4.40 (Gagal I and II) 1.58 2.20 1.50 0.96 0.91 2.59 2.60 2.31

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

SWOT ANALYSIS
SWOT analysis is a method for analysing a business, its resources, and its environment. SWOT is commonly used as part of strategic planning and looks at:

Internal strengths Internal weaknesses Opportunities in the external environment Threats in the external environment

SWOT can help management in a business discover:

What the business does better than the competition What competitors do better than the business Whether the business is making the most of the opportunities available How a business should respond to changes in its external environment

The result of the analysis is a matrix of positive and negative factors for management to address: Positive factors Internal factors Strengths External factors Opportunities Negative factors Weaknesses Threats

The key point to remember about SWOT is that:

STRENGTHS:
1. The industry is likely to maintain its growth momentum and continue growing at about 9 10% in the foreseeable future. 2. Government initiative in the infrastructure sector such as the commencement of the second phase of the National Highway Development project, freight carriers, rural roads and development of the housing sector (Bharat Nirman Yojana) are likely to be the main drivers of growth. 3. In the coming few years the demand for the cement will increase which will be booming news for cement manufactures. As capacity utilization is over 90% now. 4. Huge potential for export.

WEAKNESS:
1. Cement Industry is highly fragmented & regionalized. 2. Low value commodity makes transportation over long distances un-economical. 3. High capital cost and investment cost for each and every project. 4. The complex Excise Duty structure based on the category of buyer and end use of the cement has caused at lot of confusion in the industry. 5. The recent ban on export of cement clinker would increase the availability of cement in the domestic market, which in turn would put pressure on cement prices.

OPPORTUNITIES: DEMANDSUPPLY GAP

1. Substantially low per capita cement consumption as compared to developing countries (1/3 rd of world average) Per capita cement consumption in India is 82 kgs against a global average of 255 kgs and Asian average of 200 kgs. 2. Despite slightly lower economic growth, the construction and infrastructure sector is expected to record healthy growth, which augurs well for cement industry. 3. Additional capacity of 20 million tons per annum will be required to match the demand.

THREATS:
1. The recent moves by the Central Government in making the import of the cement total duty free, is a cause of worry for the Indian cement industry.

2. Further recent changes in the Central Excise Duty structure by way of introduction of multiple slabs of Excise Duty is also a cause of worry for the industry.

3. Almost all the major players in the industry have announced substantial increase in the capacity and the possibility of over supply situation cannot be ruled out.

4. Increased railway freight, coal prices and dispatch bottlenecks on account of truck Loading restrictions imposed by various State Governments

5. Scarcity of good quality Coal is some other factors which are cause of concern for the industry.

Competitor analysis (Overall industry):ACC, with an installed capacity of 22.63 MTPA, enjoys an 11% market share in India, which with its total installed capacity of 207 MTPA, India is the second largest cement producing country in the world. ACCs nation-wide presence and brand image ensures a competitive edge and helps it to withstand regional fluctuations in prices and also to adapt its distribution to market place needs. Its key competitors are as follows:-

ACC Ltd is the market leader with the capacity of 22.63 MTPA .The top ten companies are given below with the details:Name Production Installed Capacity Net Profit (Quarter ended Sep 30, 2009) Name Production Installed Capacity ACC Limited 17,902 18,640 41,550.89 lakhs Gujarat Ambuja Cements Limited 15,094 14,860

Net Profit (Quarter ended on Sep 30, 2009) 31,848 lakhs Name Production Installed Capacity Net Profit (in 2008-09) Ultratech 13,707 17,000 97,700 lakhs

Name Production Installed Capacity Net Profit (in 2008-09) Name Production Installed Capacity Net Profit (in 2008-09) Name Production Installed Capacity Net Profit (in 2008-09) Name Production Installed Capacity Name Production Installed Capacity Name Production Installed Capacity

Grasim 14,649 14,115 1,64,800 lakhs India Cements 8,434 8,810 43,218 lakhs JK Cement Ltd 6,174 6,680 14,234.40 lakhs Jaypee Group 6,316 6,531 Century Cement 6,636 6,300 Madras Cement 4,550 5,457

Net Profit (in 2008-09) Name Production Installed Capacity Net Profit (in 2008-09)

49,081 lakhs Birla Corp. 5,150 5,113 9,061 lakhs

AWARDS
Awards & Accolades

IMC Ramkrishna 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 Karan 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 Golden Peacock Environment Management Special Award - for outstanding efforts in Environment Management in the large manufacturing sector.

KEYS TOWARDS STRATEGIC PLANNING:-

1. MISSION:
Leadership Maintain our relationship of the Indian cement industry throughout the continuous modernization and expansion of our manufacturing facilities and activities , and through threstablishment of a wide and efficient marketing network Profitability-Achieve a fair and reasonable return on capital by promoting productivity through out the company Growth- Ensure a steady growth of business bystrengthening our position in the cement industry. Quality- Maintain high quality of our products and services and ensure their supply their supply at fair prices.

 Equity- Promote and maintain fair industrial relations and an environment for the effective involvement, welfare, and development of staff at all levels. Pioneering- Promote research and development efforts in the areas of product development and energy , and fuel conservation and to innovate and optimize productivity. Responsibility- Fulfill our obligations to society, specifically in areas of integrated rural development and in and in safeguarding the environment and natural ecological balance

2. VISION

3.

OBJECTIVES AND GOALS:

The company wants to capitalize on the synergies seeing the big picture. The company would visualize a bubbling with vim and vitality for occupying a vantage position in the best cement companies across the globe At ACC we believe that being a passive onlooker and keep waiting for life to happen something is not the right way to achieve success. Success comes through innovation and innovation can happen only to those who are drawn by the unknown and driven by the magnitude of challenge. The performance as a cement industry in the country has prompted everyone to pronounce our worthiness .

4.

STRATEGIES. A. High on quality, customer value and customer care B. Branding C. Advertising D. Other promotional activities E. Packages F. Retention marketing

ACC Limited has high efficiency state-of art pollution control equipments and devices. Each of its manufacturing units has a separate environment section managed by a qualified environmental engineer and supporting staff. Our plants, mines and townships demonstrate the companys successful endeavors in greening activities as aforestation, tree planting, horticulture, vegetable and cultivation apart from basic landscaping designed to enrich and beautify the environment. Cleaner mining techniques have helped safeguard and conserve mineral resources. In addition, we have taken other positive measures such as topsoil conservation, efficient water management system and the treatment of wastes, sewage and effluents. Some of our plants have become near self reliant in their water requirements. ACC has achieved spectacular results in the utilization of two hazardous and pollutant industrial waste namely slag from steel plants and fly ash from thermal power stations to make blended cements that have conserved lime stones resources. Over the years, ACC has won several prizes and certificates of merits for environmental measures undertaken at its various plants and mines. In particular for programs involving greening, forestation, rehabilitation of mines, noise abatement and other visible measures such as tree plantation and water management. 5. VALUES:

Our values are fundamental to our success. They are the foundation of our company, define who we are and set us apart from the competition. They underlie

our vision of the future, our business strategies and our decisions, actions and behaviors. We live by them. They endure. Core values OF ACC CEMENT.: Empathy, Empathy begins with listening ... paying close attention to the world around us ... understanding, appreciating and meeting the needs of those we serve, including consumers, retail customers, shareholders and each other as employees. OriginalityBeing Authentic and Innovative, and Integrity. These values are linked. As we look at our history, we see a story of how our core values work together and are the source of our success 6.Programmes:The Associated Cement Companies Limited(ACC) is an Indian company in the cement manufacturing business. Its registered office is called Cement House. It is located on Maharishi Karve Road, Mumbai. It is a blue chip company. The stock price of this company contributes in calculating BSE Sensex. The management control of the company was taken over by Swiss cement major Holcim in 2004. On 1 September 2006 the name of The Associated Cement Companies Limited was changed to ACC Limited. The company is the only cement company to get the Superbrand status in India.

7.

Objectives:

ACC Limited is Indias foremost manufacturer of cement with a countrywide network of factories and marketing offices. Established in 1936, ACC has been a pioneer and trend-setter in cement and concrete technology. ACCs brand name is synonymous with cement and enjoys a high level of equity in the Indian market. Among the first companies in India to include commitment to environment protection as a corporate objective, ACC has won several prizes and accolades for

environment friendly measures taken at its plants and mines. The company has also been felicitated for its acts of good corporate citizenship. .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 endeavours 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. Today we define Corporate Social Responsibility as the way a company balances its economic, social and environmental objectives while addressing stakeholder expectations and enhancing shareholder value. The ACC Board comprises executive, non-executive, and nominee directors. This group is responsible for determining the objectives and broad policies of the Company - consistent with the primary objective of enhancing long-term shareholder value. The Board meets once a month.

CONCLUSION
Keeping pace with changing times and an ever-growing need for specialized services, ACC has begun offering its marketing expertise and distributaries facilities to other producers in cement and related areas. However a precondition of all such agreement is quality control supervision to be carried out by an ACC expert located at the franchisees plant. Each of the regional Marketing offices has a customer services cell that is manned by qualified civil engineers. These, in addition to handling after-sales servicing, function as advisory bodies that can help customers, make the right choice of cement for a specific area of application.

ACC can provide expert advice on getting the best value from cement and offer assistance on related issues in civil construction projects.

Besides this, technical books/booklets on cement, concrete and building construction and maintenance are regularly must be available for the benefit of the customers. In addition to this, ACC also publish free booklet, which profiles the latest information on concrete research, design, construction and maintenance.

Thus to conclude it can be said that acc cement has its branches spread all over India ACC Limited company product are the profitable not only in India but also in the whole world..

MAP OF ACC PLANTS:-

BIBLIOGRAPHY

WEBSITES:
www.acclimited.com www.ibef.org/industry/cement.aspx www.askwiki.com www.acchelp.com www.askacc.com

PROJECT REPORT ON
SWOT ANALYSIS OF CEMENT INDUSTRY

Submitted to: Mrs. Poonam Pathak

Submitted by: Ritika Arora 14310000727

KHALSA COLLEGE FOR WOMEN LUDHIANA

ACKNOWLEDGEMENT
It is a matter of great pleasure for me to acknowledge my indebtedness to my teacher Mrs. Poonam Pathak, for her great and needy help in the completion of this project. Really, I cannot find words to express my thanks and gratitude to her. She helped me and provided with her valuable guidance at each and every step.

Ritika Arora 14310000727

CONTENT
About Cement Industry Meaning of SWOT Strengths Weaknesses Opportunities Threats Major Players Government Policies Development (Awards) Conclusion Bibliography