Project

CHAPTER – 1
INTRODUCTION
1) Executive Summary
2) Objective of the study
3) Scope of the study
4) Research design
5) Limitation of study
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PES&T’S BIMS (MBA), BELGAUM
EXECUTIVE SUMMARY
The study is undertaken for ASSOCIATED CEMENT COMPANIES LTD. It is a

Corporate Exposure Learning wherein an attempt has been made to understand the
management problem and a small research has been undertaken so as to get an insight
into the management problem and later to give possible suggestions.
The study was conducted through a “MARKET RESEARCH” so as to find out

about the customer satisfaction and its impact on sales. The purpose of the study is to
know whether the Bailhongal people are satisfied with the quality given by the ACC, If
not how to satisfy them.
Associated Cement Companies (ACC), one of the leading Cement producers in

India came into existence consequent to the amalgamation of ten cement companies in
1936. The main business of the company constitutes of manufacturing and marketing of
cement, ready-mix concrete, refractories and refractory products. Further the company is
also into consultancy and engineering services. ACC's manufacturing base consists 14
cement plants spread well all over India, two refractory plants one each at Maharashtra
and MP and 6 RMC plants near to four metros of India and Bangalore.
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1) OBJECTIVES OF THE STUDY
Study is conducted on “MARKET RESEARCH” with reference to ACC cement

in Bailhongal taluk the objectives of the study are:
1 To study the profile of existing customers.
2 To determine the factors which influence the customers to purchase ACC

products.
3 To know which brand is more sold in market.
4 To know whether ACC lacks to that of their competitors.
3) MANAGEMENT PROBLEM:
Decline in sales
4) RESEARCH PROBLEM:
Causes and reasons for the decline of ACC sales
3) RESEARCH METHODOLOGY:
In order to achieve the above objectives the following research design was adopted.
There are two types of collecting the data they are
1. Primary data
2. Secondary data
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1. Primary data: - The primary data is to be collected using a well structured
questionnaire and also will be collected with the discussion with the respondents.
Sample size: 100 respondents.
Sample method: Random sampling.
Methods of data collection = personal interview, questionnaire.
RESPONDANTS NO’s
Engineers 12
Contractors 18
Constructors 14
Customers 65
Total 100
2. Secondary data: - The secondary data will be collecting with the help of the company
reports, broachers, webpage content etc.
3) LIMITATIONS OF THE STUDY
a) The study is limited to Bailhongal only

b) Due to time constraints the sample size was restricted to 100
c) The study results are based upon the customer’s response
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CHAPTER – 2
INTRODUCTION
Industry profile
Company profile
Product profile
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INDUSTRY PROFILE:
INTRODUCTION
The importance of cement industry in India can be hardly exaggerated, since it is

a key infrastructure industry. India stands as the 4th largest cement producing nation of
the world. It has been decontrolled from price and distribution on 1st March 1989 and
delicensed on 25th July, 1991. However, the performance of the industry and prices of
cement are monitored regularly by the Cabinet Committee on Infrastructure.
The Indian cement industry comprises of 125 large cement plants with an
installed capacity of 148.28 million tones and more than 300 mini cement plants with an
estimated capacity of 11.10 million tones per annum. The total installed capacity in the
country as a whole is 159.38 million tones in FY03 has surpassed developed nations like
USA and Japan and has emerged as the second largest market after China. Actual cement
production in 2002-03 was 116.35 million tones as against a production of 106.90 million
tones in 2001-02, registering a growth rate of 8.84%.
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Despite the fact that Indian cement industry has clocked a production of more
than 100 m tones for the second year in succession, the per capita consumption of 110
kgs compares poorly with the world average of 260 kgs. This, more than anything
underlines the tremendous scope for growth in the Indian cement industry in the long
term. In the next 2 years the per capita consumption is expected to rise to 130kgs.
The cement exports have also seen a significant growth. The industry is also
exporting cement and clinker. The export of cement during 2001-02 and 2003-04 was
5.14 million tonnes and 6.92 million tonnes respectively. Export during April-May, 2003
was 1.35 million tonnes. Major exporters were Gujarat Ambuja Cements Ltd. and L&T
Ltd.
FEATURES
With a strong projected growth potential, the number of cement plant has
enhanced. However, this industry is highly fragmented. Although consolidation has taken
place in the Indian cement industry with the top six players controlling almost 60% of the
capacity, the remaining 40% of the capacity remains with around 40 small players in the
fray.
Majority of the plants are small sized and are spread through out the country. The
cement industry is cyclical in nature, characterized by the boom-and bust syndrome. A
huge potential market and rapid growth in the early stages lead to a surge in interest and a
flurry of research. The projected growth rates point to a lucrative market. The buoyant
markets and huge profits raked in by players tempt more players into the market.
Capacities increase in excess of demand and a glut in capacity is created. Competition
increases, prices fall and margins come under pressure. Capacity addition comes to a halt;
weaker players shut shop or sell off to larger ones. Demand catches up and the cycle is
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repeated all over again. It is highly capital intensive. Any newly set up plant has a
gestation period of 3 to 4 years.
Cement involves highly energy intensive manufacturing with more than 40

percent of the total cost composing of expenditure on energy. This calls for an efficient
energy management. This efficiency can be achieved right from the designing stage. The
energy conservation aspect is to be considered while setting up a new plant or upgrading
the existing one. The major energy consumption is involved in mines, mills, blending and
homogenization, kiln and cooler , stacking and packaging plant. The major thermal
consumption is only in the kiln section. Thermal energy is occasionally used in the hot air
furnace for drying of coal in the coal mill and drying of fly-ash in cement mill.
Cement, being a bulk commodity, is a freight intensive industry 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.
PRODUCT AND RAW MATERIALS
Cement is a mixture of limestone, clay, silica and gypsum. It is a fine powder

which when mixed with water sets to a hard mass as a result of hydration of the
constituent compounds. It is the most commonly used construction material.
There are different varieties of cement based on different compositions according to
specific end uses namely Ordinary Portland Cement, Portland Pozolona Cement, Portland
Blast Furnace Slag Cement, White Cement and Specialized Cement. The basic difference
lies in the percentage of clinker used.
Limestone is the key raw material and normally, 1.2-1.5 tons are needed for every ton of
cement. The quality of the limestone significantly affects the operating efficiency of the
units. Under normal conditions, to produce 1 ton of cement, 0.25 ton of coal, 120 kwh of
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power and 0.05 ton of gypsum is required.
MANUFACTURING PROCESS
The wet, semi-dry or dry processes can be used to produce cement. In the
wet/semi-dry process, the raw material is produced by mixing limestone and water
(called slurry) and blended with soft clay. The dry process and semi-dry processes are
more fuel-efficient. The vertical shaft technology employed by mini cement units, use the
wet process where as the rotary kiln technology uses the modern dry process. The Indian
cement industry has been progressively using the wet process with the dry process, which
now accounts for 91% of the installed capacity.
The whole manufacturing process of cement consists of mixing, drying and

grinding of limestone, clay and silica into a composite mass. The mixture is then heated
and burned in a pre-heater and kiln and then cooled in an air cooling system to form
clinker, which is the semi-finished form. This clinker is cooled by air, subsequently
ground with gypsum to form cement.
Limestone is the key raw material and normally, 1.2-1.5 tons are needed for every
ton of cement. The quality of the limestone significantly affects the operating efficiency
of the units. Under normal conditions, to produce 1 ton of cement, 0.25 ton of coal, 120
kwh of power and 0.05 ton of gypsum is required.
CEMENT CONSUMPTION
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Cement is one of the most commonly used building material in India. It is used
extensively in household and industrial construction. Earlier, government sector used to
consume over 50% of the total cement sold in India, however, its share has come down to
35%. Rural areas consume less than 23% of the total cement. Availability of cheaper
building materials for non-permanent structures affects the rural demand.
Demand for cement is linked to the economic activity in any country. Broadly, it
can be categorized into demand for housing construction and infrastructure creation. The
real driver of cement demand is creation of infrastructure; hence cement demand in
emerging economies is much higher than developed countries where the demand has
reached maturity stage. In India too, the demand for cement will be affected by spending
on infrastructure.
With the boost given by the government to various infrastructure projects, road network
and housing facilities, growth in the cement consumption is anticipated in the coming
year. The favorable housing finance environment is expected to fulfill the vast housing
requirements, both in rural and urban areas. The increase in infrastructure projects by the
government coupled with the construction of the Golden Quadrilateral and the North-
South and East-West corridor projects have led to an increase in consumption of cement.
This increase is expected to continue in the future. The reduction in import duties is not
likely to affect the industry as the cement produced is at par with the international
standards and the prices are lower than those prevailing in international markets.
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CEMENT CONSUMPTION (IN %)
COMPETITIVE FORCES INFLUENCING THE INDUSTRY
Entry Barriers: Capital cost, raw material availability and distribution network act
as the major entry barriers. Since these components involve huge cost, it is very capital
intensive business. This makes the entry of small players almost impossible.
Threat of substitute: There is no major threat of substitute. Bitumen is a substitute

which is used for concrete in roads.
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Competition: There is intense competition within the industry due to intermittent
overcapacity. More than 40 percent of the market is ruled by few major players. Besides,
marginal amount of product differentiation also intensifies competition. This business
involves huge storage cost and high exit barriers in form of huge quantum of investment
involved.
Bargaining power of the suppliers: The suppliers enjoy huge amount of bargaining power
due to monopolistic control of external factors like coal, power and railways for
transportation.
Bargaining power of the buyers: The bargaining power of the buyer is on decline
with increase in retail sales in small quantities and bulk purchases, which was done
mainly by the government is also on decline.
Governments Policies: Government policies have affected the growth of cement
plants in India in various stages. The control on cement for a long time and then partial
decontrol and then total decontrol have contributed to the gradual opening up of the
market for cement producers. The stages of growth of the cement industry can be best
described in the following stages:
Price and Distribution Controls (1940-1981).

During the Second World War, cement was declared as an essential commodity
under the Defence of India Rules and it was brought under price and distribution controls
which resulted in sluggish growth. The installed capacity reached only 27.9 MT by the
year 1980-81.
Partial Decontrol (1982-1988)

In February 1982, partial decontrol was announced. Under this scheme, levy
cement quota was fixed for the units and the balance could be sold in the open market.
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This resulted in extensive modernization and expansion drive, which can be seen from
the increase in the installed capacity to 59MT in 1988-89 in comparison with the figure
of a mere 27.9MT in 1980-81, an increase of almost 111%.
Total Decontrol (1989)

In the year 1989, total decontrol of the cement industry was announced. By
decontrolling the cement industry, the government relaxed the forces of demand and
supply. In the next two years, the industry enjoyed a boom in sales and profits. By 1992,
the pace of overall economic liberalization had peaked; ironically, however, the economy
slipped into recession taking the cement industry down with it. For 1992-93, the industry
remained stagnant with no addition to existing capacity.
Government Controls
The prices that primarily control the price of cement are coal, power tariffs,
railway, freight, royalty and cess on limestone. Interestingly, all of these prices are
controlled by government.
Coal:
The consumption of coal in a typically dry process system ranges from 20-25% of
clinker production. This means for per ton clinker produced 0.20-0.25 ton of coal is
consumed. This contributes 35-40% of the production cost. The cement industry
consumes about 10mn tons of coal annually. Since coalfields like BCCL supply a poor
quality of coal, NCL and CCL the industry has to blend high-grade coal with it. The
Indian coal has a low calorific value (3,500-4,000 kcal/kg) with ash content as high as
25-30% compared to imported coal of high calorific value (7,000-8,000 kcal/kg) with low
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ash content 6-7%. Lignite is also used as a fuel by blending it with coal. However this
process is not very common.
Electricity
Cement industry consumes about 5.5bn units of electricity annually while one ton
of cement approximately requires 120-130 units of electricity. Power tariffs vary
according to the location of the plant and on the production process. The state
governments supply this input and hence plants in different states shall have different
power tariffs. Another major hindrance to the industry is severe power cuts. Most of the
cement producing states like AP, MP, experience power cuts to the tune of 25-30% every
year causing substantial production loss.
Infrastructure
To reduce uncertainty relating to power, most of the leading companies like ACC,
Indian Rayon, and Grasim rely on captive power plants. A few companies are also
considering power-generating windmills.
Limestone
This constitutes the largest bulk in terms of input to cement. For producing one
ton of cement, approximately 1.6 ton of limestone is required. Therefore, the cement
plant location is determined by the location of limestone mines. The major cash outflow
takes place in way of royalty payment to the central government and cess on royalties
levied by the state government. The total limestone deposit in the country is estimated to
be 90 billion tons. AP has the largest share -- 34%, Karnataka 13%, Gujarat 13%, M.P
8%, and Rajasthan 6.5%. The plants near the limestone deposit pay less transportation
cost than others.
Transportation
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Cement is mostly packed in paper bags now. It is then transported either by rail or
road. Road transportation beyond 200 kms is not economical therefore about 55% cement
is being moved by the railways. There is also the problem of inadequate availability of
wagons especially on western railways and southeastern railways. Under this scenario,
manufacturers are looking for sea routes, this being not only cheap but also reducing the
losses in transit. Today, 70% of the cement movement worldwide is by sea compared to
1% in India. However, the scenario is changing with most of the big players like L&T,
ACC and Grasim having set up their bulk terminals.
COST STRUCTURE AS A PERCENTAGE OF SALES.

DEMAND AND SUPPLY
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Supply-demand situation is a critical factor in determining the overall profitability
of the industry. Even a small imbalance in demand and supply can result in
disproportionate changes in the cement prices. At present the Indian cement industry is
standing at a crucial phase.
At present the demand and the supply in the cement industry is balanced at
around 120 mtpa. The demand is expected to grow at 10 percent p.a. in the next three
years. The emphasis laid by the government on the development of the national
infrastructure like roads, airports, harbors and railways has driven the growth of this
sector. Government is a single largest buyer of cement. One of the major cement
consuming projects is the gloden Quadilateral project. This project was initiated to lay a
roadway 5,846 km long. Apart from this several other projects have been initiated like
North -South & East-West corridors spreading over 7,300 km. Other than this,
development of SEZ and ports and air ports is expected to boost the demand for cement
in the next two years.
Besides, recent stress on the housing development by availability of cheap credit,

has given a strong impetus to the growth of this sector. The Reserve Bank of India has
also reduced the interest on the housing loans from 15 to 16% p.a to 7 to 8% in the recent
time. In the year 2002-03, the total housing finance disbursed was around Rs 650 bln to
finance 4.9 mln units. The total demand for cement arises from namely three sectors,
namely, housing, infrastructure, and industrial construction. Apart from this the
consumption of cement is greatly determined by factors influencing the level of housing
and industrial construction, irrigation projects, roads and laying of water supply and
drainage, etc. The level of GDP and its sectorial composition, capital formation,
development expenditure, growth in population, level of urbanization, etc
As far as the supply is concerned; the booming prices in FY95 and FY96 had led
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to large-scale capacity additions. As a result, supply outstretched demand in the
subsequent years. Prices began to slip as these capacities started adding to the production.
However, the industry is slowly recovering as demand is catching up with supply and
there is hardly any capacity addition. Any installation of a plant with minimum capacity
of 1 mln tone p.a. calls for an investment of Rs 4 bln with a gestation period of 36 month.
This makes the top players go for more and more mergers and acquisitions. Moreover,
the recent demand for cement is to witness an unprecedented rise with high spending on
the infrastructure development as a prelude to elections along with a brightened export
prospects for Iraq reconstruction, with constraints on the supply side will lead to demand
and supply mismatch in the near future.
In FY02, cement sales increased by around 9.6%, compared to a 0.6% decline yoy.
The industry is expected to grow at a rate of 7-8% in FY03. The slowdown of industrial
growth witnessed in FY 2000, continued to persist in FY01.
The growth in terms of Index of Industrial Production (IIP) was 2.3% as

compared to 5.8% in the previous year. Industrial slowdown had hit all the major sectors.
Inspite of this slowdown, the cement sector registered a robust growth of 9.6% during
FY02.
Installation capacity
For the first time in India, tow large players namely, Grasim and Gujrat Ambuja
along with their associate companies control almost 50 percent of Indian cement capacity
and supply. The industry is rapidly consolidating with mergers and acquisition activity. In
the recent past ,Gujrat Ambuja acquired control of ACC and Grasim has acquired control
over L&T. These two players now dominate the industry. Amongst the multinationals,
Lafarge has acquired a capacity of 4.5 mtpa and Itali Cement a capacity of 2.7 mtpa.
There are other companies which are worth mentining like Madras Cement, JK Cement,
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Birla Corp., and so on. The industry structure with their capacity and their share in total
production is tabulated below.
Company Production capacity ( mt) Total share as percentage
ACC 16.1 11.5
Gujarat Ambuja 12.5 8.9
Grasim Ind. 14.1 10.1
L&T 17 12.1
India Cement 8.8 6.3
Century 4.7 3.4
Jaypee 4.6 3.3
Birla Corp 4.8 3.4
Lafarge 5.0 3.6
Madras Cement 5.5 3.9
Zuari 3.4 2.4
Chettinad Cement 1.8 1.3
Surashtra Cement 2.1 1.5
Andhra Cement 1.7 1.2
CCI 3.9 2.8
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Others 34.1 24.4
Total 140.0 100.0
Source:CMA
STATEWISE CEMENT PRODUCTION
As cement is a low value commodity, freight costs assume a significant proportion of the
final cost. Transporting costs render the prices of cement in distant destinations
uncompetitive. For instance, it is financially infeasible to transport cement by road over
250 kms. Railways are mostly used to transport cement over longer distances. However,
its bulky nature and infrastructure bottlenecks render even rail transport unviable over
very long distances (that is why Madras Cements or India Cements, located in the south,
can hardly make a difference to the fortunes of west-based companies like Gujarat
Ambuja). Therefore, manufacturers tend to sell cement at the nearest market first and sell
in distant markets only if additional realization is greater than freight costs incurred. This
highlights the regional nature of the cement industry.
South accounts for 33.03% of cement production capacity of the country, with
Andra Pradesh accounting for 15.27% of the total production capacity of India. It has an
installed capacity of around 20mn tons of cement and ranks first in the country, followed
by Tamil Nadu with 9.94% of the total production capacity. North accounts for 18.02%
of the total production capacity, with Rajasthan at 12.55% of the total production
capacity of the country. West accounts for 16.85% of the total production capacity.
Maharashtra and Gujarat have production capacity of 6.89% and 9.96% respectively.
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East and Central Regions account for 16.33% and 15.77% of the total production
capacity of the country respectively.
Trade between these regions is on a very low scale mainly because of the
transportation bottlenecks and uncompetitive cost of transportation. This apart, there are
other factors that determine the location of a cement plant. Proximity to limestone
deposits, availability of coal and power and the markets the plants cater to, are some of
the critical factors that determine the viability of a cement plant.
Cement and its raw materials namely coal and limestone, are all bulky items that
make transportation difficult and uneconomical. Given this, cement plants are located
close to both, sources of raw materials and markets. Most of limestone deposits in India
are located in Madhya Pradesh, Rajasthan, Andhra Pradesh, Maharashtra and Gujarat,
leading to concentration of cement units in these states. This has resulted in 'clusters'.
There are seven such clusters in the country and account for 51% of the cement capacity.
There is a trade-off between proximity to markets and proximity to raw materials due to
which some cement plants have been set up near big markets despite lack of raw
materials.
Central Region
UP 6297.00
MP 16185.00
Total 20482.00
Northern Region
Punjab 2173.34
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Delhi 500.00
Haryana 172.00
Himachal Pradesh 4060.00
Rajasthan 16299.34
J&K 200.00
Total 23404.68
Western Region
Maharashtra 8950.00
Gujarat 12937.00
Total 21887.00
Southern region
Tamil Nadu 12913.18
Andhra Pradesh 19831.02
Karnataka 9744.00
Kerela 420.00
Total 42908.20
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Eastern Region
Bihar 1000.00
Orissa 2761.00
West Bengal 2291.66
Assam 400.00
Jharkhand 3475.01
Chattisgarh 11287.33
Total 21215.00
EXPORTS
The cement sector is relatively insulated from international markets. This is

largely due to inadequate infrastructure to carry on international trade. Being a very bulky
item, international trade is very limited and only between neighbouring states. This is
amply borne out by the fact that cement accounts for not more than 0.20% of total world
exports. Although India has been consistently exporting cement in the past, the volume of
exports took a beating after the Southeast Asian crisis. From a peak of 2.68mn tons in
1997-98, cement exports from India have slid down to 2.06mn tons in 1998-99. However
the situation has improved gradually. In FY02 the exports were 2.77mn tons as against
2.37mn tons in FY01, an increase by 16.87%.
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Having a long coastline, India is well positioned to export cement to the Middle
East and Sri Lanka. However, congestion at the Indian ports and lack of cement handling
facilities restrict the free movement of cement out of India. Hence, only those companies
who have their own jetties are able to export. Moreover, currently, prices in the
international market too are at unremunerative levels. Nevertheless, companies like
Gujarat Ambuja and L&T are major exporters, who export mainly to get incentives like
duty-free import of high grade coal and oil. This apart, large scale cement exports are
possible only when cement prices in the international market look up.
OUTLOOK
Despite the overall drag in the cement prices during the last quarter, ACC has been able
to improve its sales figure owing to its geographical sales spread. Even though the sales
of the company slumped during the initial months of this financial year, however the
financial figures are expected to be attractive for this year end because of the impetus in
the construction activities. The commissioning of Chanda, Tikaria and Maukkarai captive
power plants will help the company to achieve significant saving in power and fuel. The
company has also been able to save a lot on the freight charges despite higher volumes.
Rise in sales volumes, realization and lower costs are expected to give a good boost to the
company's operating profit margin in the coming year.
The demand for cement is likely to improve in view of the thrust on roadways and
other infrastructure projects and strong growth exhibited by housing construction
segment backed by fiscal incentives and low interest regime. Nevertheless, no major
upheaval is in sight in selling prices. The company's plants are running more efficiently.
It aims to achieve still higher operating efficiencies and higher levels of capacity
utilization. During the current year, the prices are slightly more stable. For FY2004-05,
the company plans to increase cement sales by around 8 to 9% over the previous year.
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Sales (Rs cr.)
24
P/E
Further, higher levels of captive power generating capacity will help the company to
move towards greater cost competitiveness.
Almost 55% of the demand for cement comes from the housing industry and when
one considers that the housing loan disbursals are growing at a rate of more than 30%
annually, the prospects of the industry appear bright. Moreover, the government’s
initiatives in the infrastructure sector are also likely to help boost the demand for cement.
On account of these two favorable factors, we expect the industry to grow at 8%-9% in
the medium to long term. ACC, being one of the major players in the industry, is likely to
witness continued growth in dispatches, at a couple of percentage points higher than the
industry.
ACC is the largest producer of cement in the country but its low operating margins
have for some time now, remained a cause of concern. The operating margin of the
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company is expected to improve on the back of slashing of import duty on coal from 25%
to 15%. Majority of the cement manufacturers import coal and it accounts for around
25% of the direct cost of cement makers. ACC however, used imported coal worth Rs. 20
m only during FY04, but we expect the company to import more coal in the future
following the reduction in duty.
COMPANY PROFILE:
THE ASSOCIATED CEMENT COMPANIES LTD.
The history of ACC begins in 1936. War clouds were gathering over Europe; the
economy of the western world was deep in recession; and an Indian industry was reeling
under severe difficulties. But one man, undaunted by the times, was building a vision for
the future. The man was F.E. Dinshaw – a man of tremendous foresight and outstanding
initiative. The vision was to build a strong and unified cement industry that would not
only withstand all difficulties but also fulfill its responsibilities to the nation. The result
was the amalgamation of ten of the existing cement companies – belonging to four large
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industrial houses of that time, viz., the house of tata, khatau, Dinshaw and kellick Nixon
– to form the nucleus of what is today known as the Associated Cement Companies Ltd.
(ACC).
Barely three years later, the fledging company was catapulted into the fiery
cauldron of World War II, and resources were geared to meet that onslaught. Soon after,
India gained her independence. ACC was three – more than an eyewitness to history.
Helping to make history. Helping to build the new India, waiting in the wings…
changing the landscape, the very face of the country.
Over the years, ACC realized that people are as different as they are similar.
Different needs, different lives, different dreams. With its depth of knowledge and width
of experience, ACC, today, is poised to fulfill the hopes and aspirations of people across
the length and bredth of the country.
For more than six decades now, ACC has been forging a pioneering path in making
cement. Along the way, it sharpened its expertise on the transplanting – to meet the
specifics of local operating parameters. In the process – setting standards, innovating, not
just meeting needs, but anticipating them.
It is presently one of the largest cement company in India with net assets worth
2843 crores, sales amounting to Rs. 2921 Crores and annual revenues of Rs. 3322 Crores.
Its annual rated cement capacity is 15.5 million tones. The companies 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.
All of this is underscored in as much as this research and technology base- housed
under an autonomous division known as research and consultancy directorate (RCD) –
has received recognition from premier research and technology institutes in India and
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abroad. Today, the companies operations are spread throughout the country- with 11
cements units, 3 refactory plants, 12 regional marketing offices, 16 area offices, and a
dedicated employee band of about 10,000 people from all concerns of India.
As part of its expertise, ACC has acquired 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 formost 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.
Currently it is extensively involved in the operations of the Yanbu Cement Works in
Saudi Arabia for last 22 years.
The house of Tata was intimately associated with the heritage and history of ACC,
roght from its formation in 1936 upto 2000. Between the years 1999 and 2000, the tata
group sold all 14.45 per cent of its shareholding in ACC in three stages to subsidiary
companies of Gujarat Ambuja Cements Ltd (GACL), who are now the largest single
shareholder in ACC. This has enabled ACC to enter into a strategic alliance with GACL;
a company reputed for its brand image and cost leadership in the cement industry.
ACC is a professionally managed company ascribing value to responsible values

to responsible actions, responsive leadership and ethical corporate conduct. It is one of
the top 30 most valuable companies in India, known and respected across the country. It
is also one of the top ranked organizations on various performance parameters.
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Associated Cement Companies (ACC), one of the leading Cement
producers in India came into existence consequent to the amalgamation of ten cement
companies in 1936. Manufacturing and marketing of cement, readymix concrete,
refractories and refractory products are the main business of ACC. Further the company
is also into consultancy and engineering services. ACC's manufacturing base consists 14
cement plants spread well all over India, two refractory plants one each at Maharashtra
and MP and 6 RMC plants near to four metros of India and Bangalore. The total cement
capacity of ACC stands at 161.47 lakh tonnes at March 31, 2003.
In Jan. 1999, the company came out with a rights issue to fund its capex projects
involving modernization/ expansion of existing plants and creation of new capacity at
Wadi. The company meets around 83% of its power requirements from its captive power
plants. The captive power plant at Jamul and Kymore with an capacity of 25 MW each
was commissioned in Nov 1999. The 15 MW captive powerplants at Chanda, Tikaria and
Madukkarai were commissioned during the year 2002-03.In 2000, Tata group has exited
from the company by divesting their 14% equity stake in favour of Gujarat Ambuja
group. Notably, Gujarat Ambuja group is the most efficient and aggressive cement group
in India. The disinvestment was done in phases at Rs 370 per share.
ACC has completed the modernization and expansion of the Chanda and
Madukkarai cement plants for increasing their capacities to around 1 MTPA each. These
plants started production from 1 September 2000 and 1 October 2000 respectively. The
de-bottlenecking at Chanda, Gagal and Madukarrai plants have added 1 MT to ACC's
installed capacity. The 2.6 MTPA Cement plant at Wadi with largest Kiln in the country
has started its commercial production from Oct 2001.The Company has decided to exit
from the non-core businesses in an optimal manner. The company has completed
divestment of its stake in Floatglass India Ltd ([13% stake] in 2001-02), International
Ferrites Ltd.([35% stake] in 2002-03) and Bridgestone ACC India Ltd.([19% stake] in
29
2002-03). Further it has also sold its stake (5, 00,000 shares) in Tata Industries in 2001-
02. The company is making all efforts to hive off the ACC Nihon Casting, a 100%
subsidiary of ACC manufacturing alloy steel casting but has not met success yet. At the
same time of existing from non-core businesses the company has not failed to invest in
core activities it has acquired 76.01% stake in Eternit Everest from Etex Group in Feb
2002. Consequent to the acquisition the Eternit everest becames the subsidiary of ACC
w.e.f from Feb 12, 2002.
Wadi cement works, Gulbarga, Karnataka
The Wadi cement works at ACC was setup in the year 1968 with an installed capacity of
4.0 lakhs tones per annum of ordinary Portland cement clinker, subsequently the capacity
was enhanced in two phases to 20.0 lakhs plant is 40 lakh tones per annum. The factory is
situated at the south central part of the country in the state of Karnataka. It is well
conceived by rail and road. The nearest important railway junction, wadi is on the central
railway between Solapur and Guntkal. Wadi station is about 1 kilometer from the plant
site. The plant machineries were originally supplied by M/s. Taylor & M/s. ABL and
later have been renovated and upgraded over the years.
Geographically the site extends from East longitude 76 57’ 16” to 76 59’ 26” and
north latitude 17 4’5”. The nearest village is wadi at a distance of about 1.5 km from the
site on East-South-East direction. The existing colony of ACC wadi is at a distance of
about 1.2 km east of the site. The nearest railway station is wadi at a distance of about
1.5km. Wadi is a main junction on the broad guage line, connecting wadi with Mumbai,
Hyderabad, Chennai and Bangalore.
Wadi cement works manufactures ordinary Portland cement type 43, 53 grade
(latest version of IS: 269, IS: 8112 & IS:12269 respectively) and Portland Pozzolona
Cement (latest version of IS:1489 part-I) under the brand name ACC SURAKSHA which
30
makes utilization of fly ash up to 25% thereby helping in maintaining pollution free
environment.
In the plant, manufacturing of cement is based on “dry process”. The first step is
to form clinker from the fine ground mixture of calcareous and siliceous material with a
small amount of fluxing material, which is heated at high temperature. In the second step,
the formed clinker is ground with gypsum to form ordinary Portland cement. Various
additives like Pozzolona, fly ash etc. may be added at this stage to produce Portland
Pozzolona Cement.
Various raw materials like limestone, shale, iron ore, gypsum, calcined clay, and
fly ash are being used in this plant. Limestone is received from captive mines, located at
wadi. Blasting with explosive fragments the limestone. It is then loaded in to 35/50 tons
dumpers with the help of shovels. The dumpers transports the limestone to the crusher,
which is located at about 1.5km distance from the Quarry face. In the crusher the
limestone is crushed to 20 mm size. Then it is transported to the factory through a series
of conveyer belts. Shale, iron and limestone are mixed in optimum required proportion
and thoroughly homogenized pneumatically in blending soils after grinding the same in
raw mills to the required fineness. This fine powdered material called “raw meal”, is
stored in storage soils from where it is pumped to pre-heater system where it gets
calcined and then enters into the kiln. This material is burnt at 14500 C to produce an
intermediate product known as clinker, in which pulverized coal is used as a fuel. Clinker
is then cooled in cooler and sent to clinker storage Gantry. From the gentry, it is sent to
cement mills, where it is mixed with optimum quantity of gypsum and ground to the
specified fineness to produce ordinary Portland cement. For manufacturing Portland
Pozzolona Cement (PPC), clinker, Pozzolona (CCP & Fly ash) and gypsum are ground to
specified fineness in optimum proportion to produce PPC. Produced Cement is stored in
soils, from where it is packed in bags with the help of rotary packers. The plants are fitted
with Electrostatic Precipitators and bags filters to control dust emission.
31
Wadi, The place
Wadi is a small town in the Gulbarga District of Karnataka and has only recently
becomes a municipal area. It is suitably situated at a distance of about 40 Km from the
district Headquarters – Gulbarga and at distance of about 200 Km from Hyderabad in
Andhra Pradesh. Mumbai, Chennai and Bangalore also are only a night’s journey away.
The only major centers, which are relatively inaccessible from wadi, are New Delhi and
Kolkatta, with journey times in excess of 30 hours.
Wadi is a small place and the places of major interest are the ACC plants and
colony themselves and the wadi Railway Station which is a junction. The rest of wadi is
rough terrain. The level of education is fairly good in main wadi but poor in the
surrounding villages. Health and Hygiene and drinking water are major concern of the
people.
The region is a Limestone rich belt leading to the establishment of other cement
units and ancillary industries. There are Rajashree and Vasavadatta Cement units at
Malkhed and Sedum Respectively, both places at a relatively short distance from wadi.
Alstom Boilers Limited has a unit at Shahabad.
Employment Profile for Wadi Cement Works
Wadi works directly and indirectly provides livelihood to 10000 people. It

employs about 1600 people as permanent employees and about 500-800 as contract
labour. In addition there are people working as transporters, Drivers, Cook etc. Apart
from these there are a large number of businesses flourishing on account of ACC – these
are as diverse as Tailoring to pan shops to STD booths, etc.
Employee and Community Welfare
32
Employees and community welfare is an integral part of the activities of the
organization. It is committed to being an ethical and responsible corporate citizen
operating with well-defined safety and Health Policy as well as Environmental policy to
take care of health, Safety, and environmental concerns for its employees as well as
others who might be affected by its operation. These policy guidelines bind the
management as well as employees of wadi works.
ACC has been working closely with village panchayat and other local bodies in
providing better facilities to the people.
It runs a decent Dispensary/Hospital for its employees and their family members
and organizes health camps; polio immunization programmes, and conducts regular eye
camps for the benefit of the local population. In association with various Government and
Non-Government agencies. It also takes care of the Drinking water problems of the
people in difficult times.
ACC has played a pivotal role in local development by constructing concrete roads
in and around Wadi. It has built 10,000 meters of concrete road in recent times.
It is involved in building public toilets, providing free cement for construction of temples
and mosques, constructing water tanks, Panchayat buildings and other similar activities.
It conducts training programmes on safety as well as Quality of life to bring about

changes in its employees.
In addition to the above, activities like sports, cultural programmes, and celebration
of important festivals are carried out regularly to improve the quality of life at Wadi.
ACC - Milestones
1936
33
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.
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1937
With the transfer of the 10th company to ACC, viz. Dewarkhand Cement Company, the
formation of ACC is complete on October 23, 1937.
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1944
ACC’s first community development venture near Bombay
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1947
India’s first entirely indigenous cement plant established at Chaibasa in Bihar
--------------------------------------------------------------------------------
1952
Village Welfare Scheme launched
34
--------------------------------------------------------------------------------
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
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1961
Blast furnace slag from TISCO used at the Chaibasa Unit to manufacture Portland Slag
Cement for the first time in India.
35
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.
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1961
Manufacture of Hydrophobic (waterproof) cement at ACC Khalari Cement Works in

Bihar.
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1962
Manufacture of Accoproof, a waterproofing additive.
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1965
ACC’s Central Research Station (CRS) established at Thane
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1965
36
Manufacture of Portland Pozzolana Cement.
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1965
Manufacture of Calundum, a High Alumina Binder; Firecrete, Low Density Alumina

Castables and High Alumina Refractory Cement.
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1968
Advent of computers in ACC for data processing and designing management information
and control systems.
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1968
ACC supplied and commissioned one-million-tone iron ore palletizing plant ordered by
TISCO
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1971
Manufacture of Whytheat Castables A, K, C and Cal-Al-75
1973
37
Take-over of the Cement Marketing Company of India (CMI)
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1977
ACC receives ASSOCHAM first national award for the year 1976 instituted for
outstanding performance in promoting rural and agricultural development activities.
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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 tone
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.
38
--------------------------------------------------------------------------------
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.
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1993
ACC starts the commercial manufacture of Ready Mixed Concrete at Mumbai.
--------------------------------------------------------------------------------
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.
39
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1999
Tata group sells 7.2% of its stake in ACC to Ambuja Cement Holdings Ltd, a subsidiary
of Gujarat Ambuja Cements Ltd. (GACL)
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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.
--------------------------------------------------------------------------------
2002
ACC wins PHDCCI Good Corporate Citizen Award
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2003
IDCOL Cement Ltd becomes a subsidiary of ACC
40
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2004
IDCOL Cement Limited is renamed as Bargarh Cement Limited (BCL).
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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.
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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.
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2005
ACC receives the CFBP Jamnalal Bajaj Uchit Vyavahar Puraskar Certificate of Merit –
2004 from Council For Fair Business Practices.
41
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.
COMPANY PROFILE WITH RESPECT TO 7’S
McKINSEY’S 7s MODEL
42
Structure
Strateg
System
y
Shared
Values
Skills Style
Staff
GOALS AND SHARED VALUES
43
The shared values are those which guide all the employees in a similar
way. These values are practiced by the employees irrespective of profitability. These
values are not formal set of objectives. These values determine the image of the
organization in the society.
The goals are not the formal goals. These are the goals which go beyond
the written set of goals and objectives. The values and goals adopted ACC are:
 Providing quality of cement to the customer

 Continuous improvement of quality of the product
 Customer satisfaction
 Striving for the overall development of the products
 Image on competitive market
STRATEGIES
Strategy is the choice of direction and company adopts to achieve its objectives in a
competitive situation. Any statements on overall are functional strategy that the company
may wish to share.
Strategy in general is an art of planning and directing an operation in a war or campaign.

It is a skill in planning or managing any affair well. It is a policy or plan design for a
particular purpose.
Strategy of the company:
44
Marketing team will put greater accent on qualitative selling encompassing
various facets of marketing viz price, collection, reconciliation bring up corrospondance
up to date.
Quality Control:
Modern analytical methods ensure that only the best quality cement is used to
construct.
ACC is, perhaps, one of the first companies to include its commitment to
environmental protection as one of its corporate objectives. It has won several prizes and
certificates of merit for the best environmental measures undertaken at its various mines -
particularly for its programs involving 'greening,' reclamation and rehabilitation,
afforestation, top soil management, noise abatement and vibration analysis, general
aesthetic beauty, and overall performance.
The environmental protection program, undertaken on an all-ACC basis,

encompasses areas such as non-mineralized lands and safety zones, waste dumps in
mines and in villages. In addition to such aesthetic protection, rehabilitation and
reclamation programs - designed to better manage the environment - ACC pioneered the
use of sludge-, fly ash -, and slag-based blended cements. Wherever required,
Environment Impact Assessment (EIA) and Environment Management Plan (EMP) are
prepared for mines and plants.
The environment division has a multidisciplinary team of technologically strong

and technically competent professionals to plan and administer various environmental
protection jobs not only for ACC but also for clients. Its capability and expertise include
consultancy services for a variety of programs and projects.
45
STRUCTURE
Structure refers to the organizational arrangements for performing the tasks and activities.
The structure could be functional, regional, product wise etc. it also establishes the
interrelationship between various functions.
While these groups form the core management team that frames and guides corporate
policy, ACC is proud of its manpower strength of about 9,000 people, who comprise
experts in various disciplines assisted by a dedicated workforce of skilled persons. Quite
a number of them have logged many years of service with the organization. They come
from all parts of the country and belong to a variety of ethnic, cultural and religious
backgrounds. Because of such a cosmopolitan make-up, ACC can rightly be said to
embrace within its fold a family that forms a 'mini-India'.
46
ORGANIZATION STRUCTURE
CHAIRMAN
Executive Dir Non-Executive Nominees Dir Investors Comite Audit comitte
Mgr Engr Joint Mgr project
Finance Mgr Prod Mgr Mrkt Mgr Research Mgr Tech Mgr HRD Mgr
Asst Mgr Asst Mgr Electric Mgr Insrtument Mgr
Assistants Assistants
Assistants
47
STAFF
Success of every company depends on the ability of its staff. To have right person
at right job, a proper selection process has to be carried out. Training and Development
programs are very much essential to improve the Competitiveness of the existing staff.
This section contains the process by which employees are recruited, deployed and
developed. It includes Recruitment, Appointment, Induction, Training, Increment, and
Counseling.
An enterprise like ACC is part of the national community with responsibilities

towards a wide range of institutions and individuals. And the one closest to ACC is its
concern to train manpower for the cement industry as well as in specialized trades and
subjects for various industries.
The Sumant Moolgaokar Institute (SMEI) - is an eloquent testimony to the ACC

commitment to training. It provides exhaustive training in various trades like electricians,
instrument mechanics, diesel mechanics, fitters, machine tool operators, welders, and
foremen in various disciplines. The institute has turned out a vast number of artisans and
foremen who are manning senior positions in cement and other industries.
ACC's commitment to training, and the company's philosophy of sharing

expertise by training manpower for the cement industry as a whole is very well known. It
has been substantiated by an allocation by the World Bank/DANIDA groups of a grant to
the Regional Training Center (RTC), at the ACC plant at Jamul, for the benefit of cement
plants in central and eastern India.
48
SYSTEM
Systems do not refer to hard copy reports and procedures but also to informal
mechanism such as meetings and conflict management routines. It is important that
systems emphasis key themes, but at the same time it should permit discretion and
exception. Systems are powerful influences of behaviour. System includes all the rules,
regulations and procedures, both formal and informal that complements the
organizational structure. Major existing systems for it like marketing, finance, HRM,
operations, quality should be documented.
ACC sells its product:
 Directly to the customer

 Through the dealers
SKILLS
These are the qualities or characteristics of the individuals. The skills can be
acquired by learning, observation and experience.
ACC has the following skills in its employees in key positions
 Leadership
 Good knowledge of the market
 Visualization
 Coordinating
 Technical skills
49
The analytical skills development program (ASDP) helps management trainees
improve thought processes and analytical ability in order to uncover and examine
problems more effectively. Deputy Managers are put through a managerial skills
development program (MSDP) to instill the skills required for responsible leadership and
analytical business situations. A management competency development program
(MCDP) supports this with niche training for managers in their respective fields. And the
cross-functional skills development program (CFSD) helps broaden their outlook.
Finally, the general management course (GENMANCO), and the strategic leadership
development program (SLDP) for senior managers and vice presidents, respectively, help
them to develop responsiveness towards the current and future challenges by sharpening
managerial skills.
50
STYLE
STYLE OF LEADERSHIP
It refers to the leadership style of the management of the organization. Organization

culture also depicts the style of the organization.
Style is one of the seven levers, which top managers can use to bring about
organizational change.
Every employee of ACC will strive for customer satisfaction by providing quality of
product at competitive rates and timely delivery through continual improvement.
51
PRODUCT PROFILE
ACC's range of cements and blended cements are marketed through a network of
11 regional marketing offices, 16 area offices, and 160 warehouses. This is backed by a
countrywide network of over 9,000 dealers who, in turn, are assisted by their sub-dealers.
Such an all-pervasive marketing network has enabled ACC to consolidate itself with a
national presence. And the customer is assured of being able to get quality ACC products
when and where he wants them.
Complementing this is a unique customer services cell comprising qualified civil

engineers, who assist and advice customers with prior and post sales service. This service
begins with selection of type and grade of cement (where applicable) to troubleshooting
and on-site assistance.
Keeping pace with changing times and an ever-growing need for specialized
services, ACC has begun offering its marketing expertise and distribution facilities to
other producers in cement and related areas. However, a precondition of all such
agreements is quality control supervision to be carried out by an ACC expert located at
the franchisee's plant. ACC has franchising agreements for cement marketing with Alcon
Cement Company, Goa.
ACC also exports cement to SAARC nations, especially Nepal and Bangladesh on a
regular basis. Besides Ordinary Portland Cement, these exports include custom-tailored
52
cements.
ACC manufactures the following types of cement, in addition to which, it

provides Bulk Cement and Ready Mix Concrete.
Ordinary Portland Cements

ACC Cement (OPC 43 Grade)*
ACC SAMRAT (53 Grade OPC)*
Composite Cements
ACC SURAKSHA (A Composite Cement)*
ACC SUPER (Slag-based Blended Cement)*
Special Cements
Sulphate Resisting Portland Cement (SRPC)
Oil Well Cement (OWC)
Low Alkali Cement
ORDINARY PORTLAND CEMENTS

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.
53
What is more, it surpasses BIS Specifications (IS 8112-1989 for 43 grade OPC) on
compressive strength levels.
BIS Specifications on Compressive Strength Levels:
3 days 23 MPA
7 days 33 MPA
28 days 43 MPA
ACC Cement is marketed in specially designed 50 kg bags with golden yellow bands
along the sides.
ACC SAMRAT (53 Grade OPC)
54
ACC SAMRAT is the brand name for a product developed recently by our Research and
Consultancy Directorate.
It is an Ordinary Portland Cement which surpasses the requirements of IS: 12269-53
Grade. It is produced from high quality clinker ground with high purity gypsum.
ACC SAMRAT provides high strength and durability to structures because of its
optimum particle size distribution, superior crystalline structure and balanced phase
composition.
It is available in specially designed 50-kg bags with oxford-blue bands along the sides.
COMPOSITE CEMENTS
ACC SURAKSHA (Composite Cement)
55
This is a new, specially composite cement, produced by intergrinding 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 with parrot-green bands along the
sides.
ACC SUPER
56
ACC SUPER is a 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.
It matches 43 grade strength levels and has superior performance characteristics

when compared to Ordinary Portland Cement.
It is available in specially designed 50-kg bags with chrome-orange bands along
the sides.
SPECIAL CEMENTS
The action of soluble sulphates on OPC results in softening, enormous expansion, and
finally, disintegration of the concrete structure.
Sulphates attack the tricalcium aluminate (C3A) phase of Portland cement. This
reaction leads to cracking and disintegration of concrete. Concrete can be protected by
using ACC SRPC, which conforms to IS: 12330-1988.
Oilwell Cement (OWC)

OWC is used for cementing gas and oil wells at high temperatures and pressures.
This cement has a class G recognition from the American Petroleum Institute.
Oil well cement, used in the petroleum industry for cementing gas and oil wells,
helps:
• Support the axial load of the casing string and strings to be run later.
• Seal intended production or injection intervals from overlying or underlying permeable
57
sections (zone isolation).
• Protect the casing from damage or failure.
• Support borehole through the production interval.
Low Alkali Cement

Low Alkali cement is used to prevent alkali-silica reaction and consequent
deterioration of concrete. This cement produces a safe concrete when the aggregates
contain reactive silica. The standards prescribe a limit of 0.6 % of total alkalis for this
purpose.
ACC produces low alkali cement with an alkali content that is very much lower
than 0.6 %. The cement conforms to BIS and ASTM specifications.
The compressive strength of this cement surpasses 43 grade levels.
SPECIALIZED CEMENTS
Oilwell Cement
- Sulphate Resisting Portland Cement (SRPC)
Oil well Cement

To perform satisfactorily during cementing operations, Oilwell Cement slurry
should have the following characteristics:
• It should be pumpable and remain in that state till pumping operations are completed
• The flow characteristics of slurry should not change even at high temperature and
pressure conditions encountered inside the well during pumping operations
• There should not be excessive water separation as the slurry columns stand during the
58
setting period
• Water should not be lost due to the formation of pores
• Once in place, it should slip form and attain sufficient strength in a short time for
continued drilling operations
The American Petroleum Institute (API) has classified Oilwell Cements into ten
classes - A to J. Except class A, the others are available in both moderate and high
sulphate resistant varieties.
Class G is a basic Oilwell Cement, made by integrating clinker with calcium
sulphate in one or more form-and, if necessary with water. No other additives are
permitted. This type of cement is very widely used, as compared to other classes, as it can
be used for a variety of depths, with proper additives.
Class G cements are preferred because of:

• greater uniformity
• well-controlled physical and chemical properties
• better additive response
• usefulness for wide range of well conditions
Almost three decades ago, we started supplying Oilwell Cement to the oil
industry in India, conforming to mutually agreed specifications.

Salient Features
• Excellent sulphate resisting properties.
• Can be safely used in soils and ground water containing sulphate in excess of 0.2% and
300 PPM respectively.
• Required only up to plinth level.
• Other properties just like any other high grade (43 Grade) cement
59
• Checks other chemical attacks indirectly.
For large and specific requirements, various physical and chemical parameters can be
modified to meet the individual needs.
Applications
• In all foundations placed in sulphate rich environment which are near the sea, arid
zones, marshy areas, etc.
• Any construction near the seacoast e.g. ports, jetties, bridge across the sea etc.
• Sewage systems (including concrete pipes).
• Water treatment plants.
• Civil construction near sulfuric acid plants etc.
Packaging
• Available in 50 kg bags.
• Bulk supplies can also be arranged for large requirements..
Sources of sulphates
sulphates are distributed widely in nature, and are present virtually in all soil.
They are also found in seawater, marshy areas, and in some arid regions aggregates are
also contaminated with sulphates.
Concrete placed in soil or water containing sulphates is vulnerable to chemical

attack. The degree of attack depends on the concentration and type of sulphate present.
Construction in such conditions calls for special precautions, including the correct choice
of cement type.
Sulphate Resisting Portland Cement (SRPC) is a product that has been made
specially for use under these conditions. Appropriate precautions adopted at the
construction stage is easier and more economical, as compared with the complexities of
60
rehabilitating structures damaged by sulphate attack.
Three Way Protection
a) Low C3A content reduces formation of Ettringite (the expansive Hydrate) to within
tolerable limits.
b) Special quality clinker.

c) High purity gypsum.
Selection of SRPC
The severity of the attack on concrete depends on the concentration of soluble
sulphates (expressed as SO3 equivalents) present in the soil or ground water. According
to IS: 456-1978 (Specification for Reinforced and Plain Concrete) TABLE 20,
requirement for concrete exposed to sulphate attacks - the use of SRPC is recommended
when the sulphate concentration exceeds 0.2 percent in soil or 300 ppm in ground water.
To minimize the chances of concrete deterioration from harmful chemical salts,

the level of such harmful salts in concrete coming from the concrete material that is,
cement, aggregates, water and admixtures should be limited to 0.15 percent by mass of
cement for reinforced concrete or 0.10 percent for prestressed concrete.
The typical test results of SRPC supplied by ACC as per IS: 12330-1988 are as
follows:
IS 12330
C3A percent 2.5 51988
61
Fineness m2/kg 32.5 22.5
Compressive Strength Mpa
3 days 28 10
7 days 38 16
28 days 47 33
In all dynamic and versatile companies, R&D forms the hub of new activities,
and is a constant partner, innovator and evaluator. In 1964, a centralized research facility
- the Central Research Station (CRS) was established in Thane. The research station,
62
spread over an area of 8000 sq m has modern labs with the latest equipment and manned
by highly qualified scientists and technologists who carry out research in cement and
allied fields.
ACC has effectively pledged its reputation as the market leader in the quality of
cement. Maintaining this lead calls for harnessing the resources and expertise of the
company - from applied research and production to marketing. Accordingly, all ACC
factories are equipped with state-of-the-art process control instrumentation and associated
quality control and testing laboratories. Trained engineers, chemists and technicians man
these. The R&D unit at the Corporate Central Research Station, Mumbai, is used as a
reference laboratory and for diagnosis and resolving specific trouble-shooting cases.
As a result of this focus on quality, ACC cement specifications exceed those set by
BIS by a wide margin. Today, 10 of our 13 cement plants already have the ISO 9000 &
ISO 14000 certification. This demonstrates our tradition of providing reliable and
consistent quality through the application of modern technology, and justifies the
preferences of a nationwide customer base.
63
ACC has been in operation for over six decades, and each year has enabled it to
garner rich experience that has given it strength to improve efficiency in operations and
management.
64
In the short span of the last six years ACC has modernized to world standards
approximately 50 percent of its manufacturing capacity, retired about two million tons
per year cement capacity consisting of obsolete assets, increased cement capacity from
seven to 16 million tons per year, secured insurance from unreliable power supplies up to
80 percent of its requirements, and introduced new value-added products like ready
mixed concrete (RMC), bulk cement, and tunnel form technology. The new assets created
compare with the best in their class in India and the rest of the world. Selective
investments were also made in refractories, advanced materials, etc. These measures
entailed a massive capital expenditure of over Rs. 20000 Million since 1991.
Apart from considerably strengthening its core business of cement, ACC is, today,
India's largest refractory manufacturer and supplier, the largest research and consultancy
organization in the Indian cement sector, and one of the pioneers in the area of advanced
materials.
Over the years, there have been several improvements in manpower productivity,
thermal and electrical energy efficiencies. In particular, power and fuel consumption have
been at considerably reduced levels of 97 kwh/ton as against 112 kwh/ton in 1991, and
800 Kcal/kg clinker as against 1114 Kcal/kg clinker in 1991 respectively. The improved
manpower productivity is evident through a very significant reduction in manhours/ton of
cement from 4.3 in 1991 to 1.5 in 2001.
In order to achieve further improvements, ACC recently adopted the most

advanced TPM, TQM, and benchmarking practices.
The dedication to consistent product quality is ensured by online monitoring

systems. Nine of our 12 cement plants already have the ISO 9000 certification. In
addition, two units have obtained the ISO 14000 certification for environment friendly
production.
65
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.
Two other small groups of directors - comprising Shareholders'/Investors'
Grievance Committee and Audit Committee of the Board of Directors - also meet once a
month on matters pertaining to the finance and share disciplines.
66
During the last decade, there has been a streamlining of the senior management
structure that is more responsive to the needs of the Company's prime business. A
Managing Committee - comprising, in addition to the Managing Director and the two
executive directors, the presidents representing multifarious disciplines: finance,
production, marketing, research and consultancy, engineering and human resources -
meets once a week.
Besides these bodies, there are senior executives and other regional managers -
based at the Company's corporate office and at its marketing offices and manufacturing
units - who contribute to the development and operation of the various functions.
While these groups form the core management team that frames and guides
corporate policy, ACC is proud of its manpower strength of about 9,000 people, who
comprise experts in various disciplines assisted by a dedicated workforce of skilled
persons. Quite a number of them have logged many years of service with the
organization. They come from all parts of the country and belong to a variety of ethnic,
cultural and religious backgrounds. Because of such a cosmopolitan make-up, ACC can
rightly be said to embrace within its fold a family that forms a 'mini-India'.
67
CHAPTER - 3
Analysis and interpretation of data
1. Graph
2. Analysis
3. Interpretation
68
1) Have you used cement for construction?
Through the survey that had been conducted it was know that all of the
respondents had been using cement for the purpose of construction
2) Which are the Brands you have used?
69
Brands Used
2%
17%
ACC
39%
9% Grasim
Co King
Raj shree
others
33%
Around 39% of the respondents have used ACC, 33% of them have used Grasim cement,
17% of them have used Rajashree cement, 9% of them have used Coramandal cement, &
2% where using other cements like Bagalkot etc. But many of them were not sticking to
any particular brand.
3) Are you satisfied with the quality of cement used?
Through the survey it was found that most of the respondents were satisfied with regards
to the quality of cement.
4) Who influenced you in buying cement?
70
Around 47% of the people were influenced by Engineer, 13% of them were
influenced by friends , 7% of them were influenced by Relatives,18 % of them were
influenced by self, 13% of them were influenced by advertisement & 2% were influenced
by the others.
5) Have you ever used ACC?
It was found that all of the respondents had been using ACC cement one time or the
other.
6) What do you feel about the Quality given by ACC?
71
Quality of ACC
Quality of ACC
3%
21%
11, 22%
0, 0% very good
18, 36% very good
45% good good
avg
poor
average
21, 42%
31% poor
They were very much satisfied with the quality given by the ACC. 45% of them
said that ACC is of very good Quality, 31% of them said that ACC is of good Quality,
21% of them said that ACC is of average Quality, & only 3% of them said that ACC is of
poor Quality.
7) Are you satisfied with the packaging of ACC?
Through the survey that had been conducted I came to know that all respondents
were satisfied with the Packaging of the ACC products.
72
8) Are you satisfied with the price of ACC?
Satisfaction with Price
14%
yes
no
86%
Around 86% of them were satisfied with pricing of ACC but only 14% of them were not
-satisfied with pricing of ACC.
9) How is the strength of ACC?
73
Strength of ACC
10% 0%
very good
46%
good
avg
44% poor
Around 46% of them said that the strength of ACC is very good, 44% of them
said that the strength of ACC is good, 10% of them said that the strength of ACC is
average.
10) What do you feel about the availability of ACC?
74
Availability
14% 0%
very good
44%
good
avg
poor
42%
Around 44% of them said that ACC availability is very good, 42% of
them said that ACC availability is good, 14% of them said that ACC
availability is average.
75
CHAPTER - 4
Findings,
Suggestions &
Conclusion
Findings
76
1) Still ACC has more sales than that of its competitor in Bailhongal in a
declining order.
2) It was found that ACC cement are over priced.
3) It was found that customer prefer ACC products as the quality offered
by them is better than that of its competitors.
4)The customers are totally satisfied with ACC products except their
pricing.
5)High pricing and low supply of ACC is the prominant problem faced
by the dealers.
SUGGESTIONS
77
Associated cement companies limited is a well established company and
is still facing some major constraints which affect the company’s demand.
High pricing and low supply of stock are major problems faced by the
dealers.
 Dealers have to grant the credit facility to the customer.
 It can be suggested to reduce the price as the competitors’ prices are

low.
 It is suggested to concentrate more on rural market.
 Make arrangements of help line so that customers can reach easily.
CONCLUSION
78
ACC is offering high quality products for customers. The company
has high goals and objectives. The company has made sincere efforts to
achieve its goals and objectives over the years. It has good sales in
Bailhongal.
Thus from the findings in the study it can be fairly concluded that,
ACC has good market potential and image. Most of the customers are
Totally Satisfied. ACC has very good sales even though it is slightly high
priced.
BIBLIOGRAPHY
79
Marketing Management - Philip Kotler
Marketing Research - Tull and Howkins
www.acclimited.com
www.google.com
Annexure
80
QUESTIONNAIRE
Dear/Madam
I student of PES&T’S BIMS (MBA), BELGAUM, as per the course
requirement we need to underage a major concurrent project entitled “customer
satisfaction and its impact on sales” towards ACC Cement in Bailhongal city dist:
Belgaum, if you could spend a few minutes of your precious time in answering this
questionnaire. This will help us to serve you better in future.
Personal detailed:
Name :
Age :
Martial status: Married Unmarried
Occupation :
Address :
PH.NO :
1. Did you used any kind of cement for construction?
Yes No
2. Which type of brand you have used?
81
ACC Cement Grasim cement Cormandal king
Rajashree cement others.
3. Are you satisfied with the quality of cement you have used?
Yes No
4. Who influence you in buying cement?
Friends Engineers Relatives
Self Advertisement Other
5. Have you ever used ACC cement?
Yes No
If yes skip Q. no: 8
6. What do you feel about the quality given by ACC cement?
Very good Average
Good Poor
7. Are you satisfied with package of ACC cement?
Yes No
82
8. You have not used ACC cement because…
Poor quality not thought High price
Not aware others
9. Are you satisfied with the price of ACC cement?
Yes No
10. How is the strength of ACC cement?

Very good Good
Average Poor
11. What do you feel about availability of ACC cement?

Very good Good
Average Poor
12. Any suggestions/Comment
THANK YOU
83
EARLIER SALES OF CEMENT PER DAY IN BAILHONGAL
ACC 600 bags/day

GRASIM 500bags/day
CORMANDAL 400bags/day
RAJASHREE 350bags/day
BAGALKOT 250bags/day
PRESENT SALES OF CEMENT PER DAY IN BAILHONGAL
ACC 550bags/day
GRASIM 500bags/day
CORMANDAL 400bags/day
RAJASHREE 350bags/day
BAGALKOT 300bags/day
84

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CHAPTER – 1

2) Objective of the study

3) Scope of the study

The study is undertaken for ASSOCIATED CEMENT COMPANIES LTD. It is a

The study was conducted through a “MARKET RESEARCH” so as to find out

Associated Cement Companies (ACC), one of the leading Cement producers in

Study is conducted on “MARKET RESEARCH” with reference to ACC cement

1 To study the profile of existing customers.

2 To determine the factors which influence the customers to purchase ACC

3 To know which brand is more sold in market.

4 To know whether ACC lacks to that of their competitors.

Causes and reasons for the decline of ACC sales

There are two types of collecting the data they are

Sample size: 100 respondents.

Sample method: Random sampling.

Methods of data collection = personal interview, questionnaire.

3) LIMITATIONS OF THE STUDY

a) The study is limited to Bailhongal only

The importance of cement industry in India can be hardly exaggerated, since it is

Cement involves highly energy intensive manufacturing with more than 40

PRODUCT AND RAW MATERIALS

Cement is a mixture of limestone, clay, silica and gypsum. It is a fine powder

The whole manufacturing process of cement consists of mixing, drying and

COMPETITIVE FORCES INFLUENCING THE INDUSTRY

Threat of substitute: There is no major threat of substitute. Bitumen is a substitute

Price and Distribution Controls (1940-1981).

Partial Decontrol (1982-1988)

Total Decontrol (1989)

COST STRUCTURE AS A PERCENTAGE OF SALES.

Besides, recent stress on the housing development by availability of cheap credit,

The growth in terms of Index of Industrial Production (IIP) was 2.3% as

Company Production capacity ( mt) Total share as percentage

ACC 16.1 11.5

Gujarat Ambuja 12.5 8.9

Grasim Ind. 14.1 10.1

India Cement 8.8 6.3

Century 4.7 3.4

Jaypee 4.6 3.3

Birla Corp 4.8 3.4

Lafarge 5.0 3.6

Madras Cement 5.5 3.9

Zuari 3.4 2.4

Chettinad Cement 1.8 1.3

Surashtra Cement 2.1 1.5

Andhra Cement 1.7 1.2

CCI 3.9 2.8

Total 140.0 100.0

STATEWISE CEMENT PRODUCTION

Himachal Pradesh 4060.00

Tamil Nadu 12913.18

Andhra Pradesh 19831.02

West Bengal 2291.66

The cement sector is relatively insulated from international markets. This is

THE ASSOCIATED CEMENT COMPANIES LTD.

ACC is a professionally managed company ascribing value to responsible values

in India. The disinvestment was done in phases at Rs 370 per share.

Wadi cement works, Gulbarga, Karnataka

Employment Profile for Wadi Cement Works

Wadi works directly and indirectly provides livelihood to 10000 people. It

Employee and Community Welfare

It conducts training programmes on safety as well as Quality of life to bring about

ACC’s first community development venture near Bombay

India’s first entirely indigenous cement plant established at Chaibasa in Bihar

Village Welfare Scheme launched