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A project report of ACC CEMENT.

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A project report of ACC CEMENT.

  1. 1. SUBMITTED BY –AJIT GUPTA A project report on ACC cement.
  2. 2. 1 Table of Contents SECTOR INFORMATION.......................................................................................................................2 Brief about the sector.....................................................................................................................2 Market sector.................................................................................................................................2 Growth of the sector.......................................................................................................................3 Cementindustry to grow at about 7% in FY17...............................................................................4 COMPANY INFORMATION...................................................................................................................5 History...........................................................................................................................................5 Milestones .....................................................................................................................................5 SWOT Analysis....................................................................................................................................5 Strengths........................................................................................................................................5 Weaknesses ...................................................................................................................................6 Opportunities.................................................................................................................................7 Threats...........................................................................................................................................7 Competitor Analysis............................................................................................................................8 Current CEO.......................................................................................................................................8 Harish Badami ................................................................................................................................9 Product portfolio................................................................................................................................9 43 Grade cements...........................................................................................................................9 53 Grade cement............................................................................................................................9 Blended cement.............................................................................................................................9 Portland slag cement ......................................................................................................................9 REFERENCES.....................................................................................................................................11 .
  3. 3. 2 SECTOR INFORMATION Brief about the sector India is the second largest producer of cement in the world. The cement industry of India provides employment to a lot of people in India. The cement industry of India has attracted a lot of domestic as well as international investment after the deregulation in the year 1982. As India is a developing nation, therefore it attracts a lot of investment in the cement industry as India is need of cement for construction of cities and development of smart cities. several foreign players such as Lafarge-Holcim, Heidelberg Cement, and Vicat have invested in the country in the recent past. A significant factor which aids the growth of this sector is the ready availability of the raw materials for making cement, such as limestone and coal. Market sector The housing sector is the biggest demand driver of cement, accounting for about 67 per cent of the total consumption in India. The other major consumers of cement include infrastructure at 13 per cent, commercial construction at 11 per cent and industrial construction at 9 per cent.The Indian cement industry is dominated by a few companies. The top 20 cement companies account for almost 70 per cent of the total cement production of the country. A total of 188 large cement plants together account for 97 per cent of the total installed capacity
  4. 4. 3 in the country, with 365 small plants account for the rest. Of these large cement plants, 77 are located in the states of Andhra Pradesh, Rajasthan and Tamil Nadu. Growth of the sector The cement sector of India is expected to grow because of government’s efforts in development of the country leading various infrastructure projects. Because of this reason the demand for cement is expected to grow to 550-600 Million Tonnes by the year 2025. On the back of growing demand, due to increased construction and infrastructural activities, the 13 4 5 3 2 1 1 1 1 1 0 2 4 6 8 10 12 14 No. of plants 712 440 330 320 240 150 120 120 56 30 0 100 200 300 400 500 600 700 800 Capacity Capacity
  5. 5. 4 cement sector in India has seen many investments and developments in recent times.According to data released by the Department of Industrial Policy and Promotion (DIPP), cement and gypsum products attracted Foreign Direct Investment (FDI) worth US$ 3.117 billion between April 2000 and September 2016. One of the news report which tells about the growth of cement sector is stated below. Cementindustryto growat about 7% in FY17: The Indian cement industry is expected to grow at 6-7 per cent in FY 2017-18, because of heavy focus on development of Infrastructure, Increased focus and spending on agriculture, infrastructure, affordable housing and cement concrete roads would be major contributors to the rise in demand. Government initiatives like smart cities and urban infrastructure development along with the implementation of Goods and Services Tax (GST) would bring major growth opportunities to the sectori.
  6. 6. 5 COMPANY INFORMATION History The historical part of ACC cement is very interesting. It was in the year 1936 when 10 cement manufacturing company come under one Umbrella Company and formed a merger. It was the country's first notable merger at a time when the term mergers and acquisitions was not even coined.The history of ACC spans a wide canvas beginning with the lonely struggle of its pioneer F E Dinshaw and other Indian entrepreneurs like him who founded the Indian cement industry. Their efforts to face competition for survival in a small but aggressive market mingled with the stirring of a country. The first success came in a move towards cooperation in the country's young cement industry and culminated in the historic merger of ten companies to form a cement giant. These companies belonged to four prominent business groups - Tatas, Khataus, Killick Nixon and F E Dinshaw groups. ACC was formally established on August 1, 1936.y's nationalist pride that touched all walks of life - including trade, commerce and business. Milestones Established in the year 1936, the journey of ACC cements has been very eventful. Till date every decade has seen ACC cement taking pioneering steps not only in concrete and infrastructural development but also in the areas of corporate development, sustainable development and also social volunteering. SWOT Analysis Strengths Solid brand equity Winning the super brand equity award multiple times itself is a part of the strengths of ACC cement. It has won awards in 2006 & 2007. This proves that the customers are happy with the brand. Awards
  7. 7. 6 ACC cement has won various awards. It is an ISO 9001 globally recognized company for its manufacturing practices. Some of the awards won by ACC cement are golden peacock and green marketing award. Distribution process ACC cement has almost 9000 dealers all over the country which deals in the various products of ACC cement. It has wide distribution network which makes it possible for the company to reach such a huge people. CSR Activities ACC cement is also known for its various CSR activities. The company has its own AIDS treatment centers and it regularly promotes various newsletters to make people aware about it. Maximum manufacturing plants ACC has the highest numbers of manufacturing plants which are close to 17 whereas Ultratech and others have lesser. Weaknesses Poor Advertising We can clearlysee thatthe advertisingstrategyof ACCcementisverypoor.Brandslike Ambujacement has come up withvariousnewadvertisingtechniques.Otherbrandsare comingupwithnew advertising techniques. Losing brand equity ACCcementwonthe superbrand award inthe year 2006 & 2007. But inthe year 2011 Ultratechcement wonthe award. Moreoveritcan alsobe seenthatstatistically. Presence inIndia only ACCis restrictedwithits presence inIndiaandhence itfacescompetitionfromUltratechwhichis exportingcementinhuge quantity.Withexports,Ultratechcanincrease itsturnovertoa good percentage. Availability Many dealerscomplainthatACChassuchgood tie upwithcorporates,that duringsummerswhen there ismassive constructiongoingon,mostcementgoestobuildersandthe dealersare notable to sell.
  8. 8. 7 Opportunities Governmenttie ups The more government tiesupithave,the more the companywill grow. Growinginfrastructure of the nation As Indiaisa developingnationthereforethe infrastructureisalsogrowing.Therefore the cement industrycanbe termedassun risingindustry.Therefore itcanbe said that ACCcementhas a good future Activities By spendingagoodamountof moneyinadvertisingthe companycangetback itsoldposition.Its weaknesscanbecome itsstrength.ACCisalreadyknownforitsqualityinmanufacturing.Itcanuse the same strengthto start exportsacrossthe worldwhichwill helpsitsoverall turnoverandincrease bottomline. Cementroads The governmentof Indiaisputtinga lotof emphasisonthe constructionof cementroads.Thisisthe reasonwhythe governmentistyingup withthe private cementcompanies.ACCcementhasalot of opportunitiesbecause of this. Exports Its weaknesscanbecome itsstrength.ACCisalreadyknownforitsqualityinmanufacturing.Itcan use the same strengthto start exportsacrossthe worldwhichwill helpsitsoverall turnoverand increase bottomline. Governmenttie ups The more governmentties upithave,the more the companywill grow. Threats Increase in the numberof competitors The Indiacementindustrynowhasa lot of keyplayers.Companieslike Ambuja,BirlaWhite,Binani and variousothercompaniesare the keyplayersof the cementindustry.Therefore ACCcements have to be verycautiousregardingtheirmarketingpolicies. Price strategyss Whena company getsa lotof competitors,ithasto enterintothe price strategyof the company.It meansthat the companyhas to reduce itsprice to attract the customersor retainitsmarketshare. Thisaffectsthe bottomline of the company.
  9. 9. 8 Market Share Once dealersstartsellingproductswhichare lowerincostbutbetterinquality,thenthe market share will slowlystarttotilt.ACCand Ambujaare fightingforthe 2nd level butbothof themmight lose marketshare to these small andregional players.Because theyare regional andfocused,these playerscanbecome strongin theirregions. Competitor Analysis Current CEO
  10. 10. 9 Harish Badami Mr. Harish Badami has been Executive Officer of ACC Limited since February 4, 2017. Mr. Badami served as the Chief Executive Officer, Managing Director and Executive Director of ACC Limited from August 13, 2014 to February 4, 2017. Mr. Badami served as Managing Director of India Unit, President of India Unit, Vice President, General Manager of Paint & CoatingsMaterials and Packaging and Building Materials of India at Rohm and Haas Company. He was responsible to lead. He completed his B.Tech and chemical engineering from IIT Bombay. He completed his management studies from IIM Calcutta. Product portfolio ACC cement mainly produces the following products – Portland cement, Bulk cement, Premium cement, Ready mixed concrete and other concrete related products. Brief descriptions of the products are as follows- 43 Grade cements It is one of the most commonly used cement for various construction purposes. It includes the following – plain and reinforced cement, brick and stone masonry and various other construction purposes like completion of buildings bridges and other. It is also used for various other furnishing purposes. Marketing of ACC cement is usually done in 50 kg bags. 53 Grade cement Thisis an ordinaryPortlandcementwhichsatisfiesthe requirements of IS: 12269-53 Grade. Produced from high purity gypsum, it provides highstrengthanddurabilitytostructuresbecause of itsoptimumparticle size distribution,superiorcrystalline structure andbalancedphase composition. Blended cement BlendedcementisproducedbymixingandgrindinghigherstrengthordinaryPortlandcementclinker withhighqualityprocessedflyash –basedon norms setup by the R&D departmentof the company.Thisunique,value-addedproducthashydraulicbindingpropertiesnotfoundinordinary cements.Itisavailable inspeciallydesigned50-kgbags. Portland slag cement Manufacturedbyblendingandinter-grindingOPCclinkerandgranulatedslaginsuitable proportionsas perour norms of consistentqualitythis
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  12. 12. 11 REFERENCES ihttps://www.ibef.org/industry/cement-india.aspx

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