Report

(formerly The Associated Cement Companies Limited)
Project on Supply chain Management
INDUSTRY PROFILE
Cement Industry in India is on a roll at the moment. Driven by a booming real estate
sector, global demand and increased activity in infrastructure development such as state and
national highways, the cement industry has witnessed tremendous growth. Production capacity
has gone up and top cement companies of the world are vying to enter the Indian market, thereby
sparking off a spate of mergers and acquisitions. Indian cement industry is currently ranked
second in the world.
The origins of Indian cement industry can be traced back to 1914 when the first unit was set-up
at Porbandar with a capacity of 1000 tonnes. Today cement industry comprises of 125 large
cement plants and more than 300 mini cement plants. The Cement Corporation of India, which is
a Central Public Sector Undertaking, has 10 units. There are 10 large cement plants owned by
various State Governments. Cement industry in India has also made tremendous strides in
technological upgradation and assimilation of latest technology. Presently, 93 per cent of the
total capacity in the industry is based on modern and environment-friendly dry process
technology. The induction of advanced technology has helped the industry immensely to
conserve energy and fuel and to save materials substantially. Indian cement industry has also
acquired technical capability to produce different types of cement like Ordinary Portland Cement
(OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil
Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland Cement, White
Cement etc. Some of the major clusters of cement industry in India are: Satna (Madhya Pradesh),
Chandrapur (Maharashtra), Gulbarga (Karnataka), Yerranguntla (Andhra Pradesh), Nalgonda
(Andhra Pradesh), Bilaspur (Chattisgarh), and Chandoria (Rajasthan).
Cement industry in India is currently going through a consolidation phase. Some examples of
consolidation in the Indian cement industry are: Gujarat Ambuja taking a stake of 14 per cent in
ACC, and taking over DLF Cements and Modi Cement; ACC taking over IDCOL; India Cement
taking over Raasi Cement and Sri Vishnu Cement; and Grasim's acquisition of the cement
business of L&T, Indian Rayon's cement division, and Sri Digvijay Cements. Foreign cement
companies are also picking up stakes in large Indian cement companies. Swiss cement major
Holcim has picked up 14.8 per cent of the promoters' stake in Gujarat Ambuja Cements (GACL).
Holcim's acquisition has led to the emergence of two major groups in the Indian cement industry,
the Holcim-ACC-Gujarat Ambuja Cements combine and the Aditya Birla group through Grasim
Industries and Ultratech Cement. Lafarge, the French cement major has acquired the cement
plants of Raymond and Tisco. Italy based Italcementi has acquired a stake in the K.K. Birla
promoted Zuari Industries' cement plant in Andhra Pradesh, and German cement company
Heidelberg Cement has entered into an equal joint-venture agreement with S P Lohia Group
controlled Indo-Rama Cement.
Issues concerning Cement Industry
PG Center, VTU, Belgaum Page 1

• High Transportation Cost is affecting the competitiveness of the cement industry. Freight
accounts for 17% of the production cost. Road is the preferred mode for transportation
for distances less than 250km. However, industry is heavily dependent on roads for
longer distances too as the railway infrastructure is not adequate.
• Cement industry is highly capital intensive industry and nearly 55-60% of the inputs are
controlled by the government.
• There is regional imbalance in the distribution of cement industry. Limestone availability
in pockets has led to uneven capacity additions.
• Coal availability and quality is also affecting the production.
Capacity and Production
The cement industry comprises of 125 large cement plants with an installed capacity
of 148.28 million tonnes and more than 300 mini cement plants with an estimated capacity of
11.10 million tonnes per annum. The Cement Corporation of India, which is a Central
Public Sector Undertaking, has 10 units. There are 10 large cement plants owned by various
State Governments. The total installed capacity in the country as a whole
is 159.38 million tonnes. Actual cement production in 2009-10 was 2.06 million tonnes as
against a production of 1.88 million tonnes in 2008-9, registering a growth rate of 8.84%.
Keeping in view the trend of growth of the industry in previous years, a production
target of 126 million tonnes has been fixed for the year 2009-10. During the period January –
December 2010, a production (provisional) was 21.21 million tonnes. The industry has
achieved a growth rate of 4.86 per cent during this period.
Exports
Apart from meeting the entire domestic demand, the industry is also exporting cement
and clinker. The export of cement during 2001-02 and 2003-04 was 5.14 milliontonnes 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.
FACTOR’S RESPONSIBLE FOR THE GROWTH OF THE SECTOR

Technological change
Continuous technological upgrading and assimilation of latest technology has been going on
in the cement industry. Presently, 93 per cent of the total capacity in the industry is based on
modern and environment-friendly dry process technology and only 7 per cent of the capacity is
based on old wet and semi-dry process technology. There is tremendous scope for waste heat
recovery in cement plants and thereby reduction in emission level.
New Investments
• Shree Cements will invest almost US$ 244.12 million this year, of which half will be
invested towards setting up two grinding units at Rajasthan and Uttarakhand to augment
its capacity. The other half will be towards the two power plants in Bangur.
• ACC Ltd will spend US$ 575 million on capacity expansion in 2009 and 2010. ACC is
expanding capacity by a third to 30 MT by 2010.
• Binani Cement has signed a memorandum of understanding with the Gujarat government
to set up a 2.5 MTPA Greenfield cement plant in Gujarat at a cost of US$ 169.40 million.
Binani Cement has also initiated talks with a few foreign institutional investors (FIIs) to
raise US$ 307.99 million for its new projects.
• Bheema Cements Ltd is planning to invest US$ 116.42 million in setting up a new
manufacturing line of 1.5 MT capacities at its plant in Andhra Pradesh.
Mergers and Acquisitions (M&As)
A growing and robust economy was noteworthy in terms of the total number of mergers and
acquisitions (M&A) in India 2007, with the cement sector contributing to 7 per cent to the total
deal value.
• Holcim strengthened its position in India by increasing its holding in Ambuja Cement
from 22 per cent to 56 per cent through various open market transactions with an open
offer for a total investment of US$ 1.8 billion. Moreover, it also increased its stake in
ACC Cement with US$ 486 million, being the single largest acquirer in the cement
sector.
• Leading foreign funds like Fidelity, ABN Amro, HSBC, Nomura Asset Management
Fund and Emerging Market Fund have together bought around 7.5 per cent in India's
third-largest cement firm, India Cements (ICL), for US$ 124.91 million.
• Cimpor, the Portugese cement maker, paid US$ 68.10 million for Grasim Industries'
53.63 per cent stake in Shree Digvijay Cement.

• CRH Plc, the world's second biggest maker and distributor of building materials,
acquired a 50 per cent stake in My Home Industries Ltd for almost US$ 372.64 million.
• Vicat SA, a French cement maker acquired a 6.67 per cent stake in Hyderabad-based
Sagar Cement for US$ 14.35 million.
Government Initiatives
Government initiatives in the infrastructure sector, coupled with the housing sector boom and
urban development, continue being the main drivers of growth for the Indian cement industry.
• Increased infrastructure spending has been a key focus area over the last five years
indicating good times ahead for cement manufacturers.
• The government has increased budgetary allocation for roads under National Highways
Development Project (NHDP).
• Appointing a coal regulator is looked upon as a positive move as it will facilitate timely
and proper allocation of coal (a key raw material) blocks to the core sectors, cement
being one of them.
Keeping in mind the global meltdown which is impacting the cement companies in India, the
government reimposed the counter-veiling duty (CVD) and special CVD on imported cement in
January. This is likely to provide a level playing field to domestic companies.
COMPANY PROFILE


ACC BUILDING THE NATION
ACC has been an interesting story – one that inspired a book. ACC was formed in 1936
when ten existing cement companies came together under one umbrella in a historic merger – the
country’s first notable merger at a time when the term mergers and acquisitions was not even coined.
The history of ACC spans a wide canvas beginning with the lonely struggle of its pioneer F E
Dinshaw and other Indian entrepreneurs like him who founded the Indian cement industry. Their
efforts to face competition for survival in a small but aggressive market mingled with the stirring of a
country’s nationalist pride that touched all walks of life – including trade, commerce and business.
The Associated Cement Companies Limited, (ACC) as it .is popularly known is India’s
largest cement manufacture, with an installed capacity of 18.8million tones per annum, and sales
turnover of over Rs 4000 cores. ACC’s operations are spread throughout the country with 15
modern factories, 11 regional marketing offices, and several zonal offices. ACC’s full name The
Associated Cement Companies Limited, the name itself indicates the company’s origins from this
unique merger. Acknowledged on among the most trusted names incorporate India, ACC is listed
one the super Brands of India.
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 breadth
of the country.


LOCATION
The wadi cement works of 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 27.0 Lakhs tonnes per annum. The current capacity of the commencing of new
plants is 54 Lakhs tones per annum.
The factory is situated at the south mental part of the country in the state of Karnataka. It is
well connected by rail and road. The nearest important railway junction, Wadi, is on the central
railway between Solapur and Guntakal. Wadi stations about 1.5 Kilometer from the plant site. The
plant machineries were originally supplied by M/S. Taylor and M/S. ABL and later have been
renovated and upgraded over the years.
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 makes utilization of fly
ash up to 25% thereby helping in maintaining pollution free environment
In this plant, manufacturing of cement is based on “dry process”. The first step is to form
clinker from a 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.


WADI: THE PLACE
Wadi is a small town in the Gulbarga district of Karnataka state and has only recently
become a municipal area. It is suitably situated at a distance of about 40 km from the district
headquarters Gulbarga and at a distance of about 200 km from Hyderabad in Andhra Pradesh.
Mumbai Chennai and Bangalore also are only a night journey away. The only major centers, which
are relatively inaccessible from Wadi, are New Delhi and Kolkata with journey times in excess of 30
hrs.
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 territorial.
The level of education is fairly good in Main Wadi but poor in the surrounding villages. Health and
hygiene and drinking water are major concerns of the people.
a) Background and inception of the company
ACC was formed in 1936 when ten existing cement companies came together under one
umbrella in a historic merger – the country’s first notable merger at a time when the term
mergers and acquisitions was not even coined. The history of ACC spans a wide canvas
beginning with the lonely struggle of its pioneer F E Dinshaw and other Indian entrepreneurs like
him who founded the Indian cement industry. Their efforts to face competition for survival in a
small but aggressive market mingled with the stirring of a country’s nationalist pride that
touched all walks of life – including trade, commerce and business.
The first success came in a move towards cooperation in the country’s young cement
industry and culminated in the historic merger of ten companies to form a cement giant. These
companies belonged to four prominent business groups – Tatas, Khataus, Killick Nixon and F E
Dinshaw groups.
CC was formally established on August 1, 1936. Sadly, F E Dinshaw, the man recognized
as the founder of ACC, died in January 1936. Just months before his dream could be realized.

F.E. Dinshaw – the founder of ACC

ACC stands out as the most unique
and successful merger in Indian business history, in which the distinct identities of the constituent
companies were melded into a new cohesive organization – one that has survived and retained its
position of leadership in industry. In a sense, the formation of ACC represents a quest for the synergy
of good business practices, values and shared objectives. The use of the plural in ACC’s full name,
The Associated Cement Companies Limited, itself indicates the company’s origins from a merger.
Many years later, some stockbrokers in the country’s leading stock exchanges still refer to this
company simply as ‘The Merger 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 breadth of the country.


HERITAGE
The house of Tata was intimately associated with the heritage and history of ACC, right
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's First Board Meeting in 1936 at The Esplanade Sir Nowroji B Saklatvala was the
first chairman of ACC.
The first Board included distinguished luminaries of the Indian business world of the
time – names like J R D Tata, Ambalal Sarabhai, Walchand Hirachand, Dharamsey Khatau, Sir
Akbar Hydari, Nawab Salar Jung Bahadur and Sir Homy Mody among others.
b ) Nature of the business carried
The high quality cement that is manufactured and exported by ACC Ltd is produced in
the ACC Ltd. Cement Plants. ACC Ltd is one of the front runners in the cement industry in India


and produces some of the best quality cement in the country. It has a significant market share in
the segments of housing, real estate, infrastructure and other development projects. With more
and more developmental projects coming up, the profit and the market share of the company is
expected to rise at a considerable rate.
The cement plants of ACC Ltd are located in various regions of the country in a number
of states. The gadgets and equipments are of high standards and comply with the international
standards. Presently, there are around 12 cement plants of ACC Ltd which cater to the different
market segments of the country. The cement plants work in coordination with each other and
also independently to increase the share in the market.
All the ACC Ltd. Cement Plants use the cutting edge technologies and services which in turn
produce high quality cement brands. Set up in the year 1936, ACC has always worked
dedicatedly to produce some of the best brands of cement and its business strategy is based on
providing the best of products to the changing consumer market in the country and the world.
The following table provides a general idea of the ACC Ltd. Cement Plants.
Acc Cement Plants in India

Name of the Company Location State Process Used
ACC Ltd. Gagal Himachal Pradesh Dry
ACC Ltd. (G) Tikaria Uttar Pradesh Grinding Unit
ACC Ltd. Lakheri Rajasthan Dry
ACC Ltd. Kymore Madhya Pradesh Dry
ACC Ltd. Chaibasa Jharkhand Chaibasa
ACC Ltd. Sindri Jharkhand Grinding Unit
ACC Ltd. Jamul Chhattisgarh Dry and Semi-Dry
ACC Ltd. Chanda Maharashtra Dry
ACC Ltd. Wadi Karnataka Dry
ACC Ltd. – New Wadi Karnataka Dry
ACC Ltd. Macherial Andhra Pradesh Grinding Unit
ACC Ltd. Madukkarai Tamil Nadu Semi-Dry
Some ACC Facts:
➢Largest Network in India

➢15 cement Factories

➢11 Marketing Offices

➢16 Area Offices
➢160 Warehouses
➢9,000 Dealers
Barely three years later, the fledgling 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 there - 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. ACC (The Associated Cement Companies Limited) is India's foremost manufacturer
of cement, concrete and refractory products. Its sales turnover in 2002-03 was Rs. 34899 million.
ACC's operations are spread throughout the country with 14 modern cement
factories, 11 regional marketing offices, and several zonal offices. It has a workforce of 9200
persons and a countrywide distribution network of over 9,000 dealers. ACC's research and
development facility has a unique track record of innovative research, product development and
specialized consultancy services. Since its inception in 1936, the company has been a trend-
setter and important benchmark for the cement industry in respect of its production, marketing
and personnel management processes.
Its commitment to environment-friendliness, its high ethical standards in business

dealings and its on-going efforts in community welfare programmes have won it acclaim as a
responsible corporate citizen. ACC has made significant contributions to the nation building
process by way of quality products, services and sharing its expertise. The company's various
businesses are supported by a powerful, in-house research and technology backup facility - the
only one of its kind in the Indian cement industry. This ensures not just consistency in product
quality but also continuous improvements in products, processes, and application areas.


Today, the company's operations are spread throughout the country - with 14 cement
factories, three refractory plants, 11 regional marketing offices, 16 area offices, and a dedicated
employee band of about 9,200 people from all corners 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 foremost user of the road transport network services for inward and
outward movement of materials and products.
C) Vision, Mission and Quality Policy

ORGANIZATIONL VISION

MISSION
Leadership
Maintain our leadership of the Indian cement industry through the continuous
modernization and expansion of our manufacturing facilities and activities, and through the
establishment of a wide and efficient marketing network.
Profitability
Achieve a fair and reasonable return on capital by prompting productivity thought the
company.
Growth
Ensure a steady growth of business by strengthening our position in the cement sector
and also by diversifying into other areas consistent with the overall corporate objectives.
Quality
Maintain the high quality of our products and services and ensure their supply at fair
prices.
Equity
Promote and maintain fair industrial relations and an environment for the effective
involvement, welfare and development of staff at all level.
Pioneering
Promote research and development efforts in the areas of product development and
energy, and fuel conservation, and to innovate and optimize productivity.
Responsibility
Fulfill our obligations to society, specifically in the areas of interated rural development
and in safeguarding the environment and natural ecological balance.

QUALITY
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, 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.
QUALITY POLICY OF THE COMPANY

• Build quality in; do not sort bad quality out.
• Manufacture and sell quality products.
• Satisfy customer fully and continuously.
d) PRODUCT PROFILE


ACC manufactures the following types of cement, in addition to which, it provides Bulk Cement
and Ready Mix Concrete.
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.
What is more, it surpasses BIS Specifications (IS 8112-1989 for 43 grade OPC) on compressive
strength levels.
ACC Cement is marketed in specially designed 50 kg bags.
53 Grade Cement
This 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 53 Grade OPC 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.
Blended Cements
Fly-ash based Portland Pozzolona Cement
This is special blended cement, produced by inter-grinding higher strength Ordinary Portland
Cement clinker with high quality processed fly ash - based on norms set by the company's R&D
division. This unique, value-added product has hydraulic binding properties not found in
ordinary cements.
What is special about ACC Fly-ash based PPC?
ACC Fly-ash based PPC is made by intergrading high strength clinker with specially processed
flyash. This imparts a greater degree of fineness to ACC Fly-ash based PPC cement, improved
workability properties while mixing, and makes concrete more corrosion resistant and
impermeable. All of this makes for better long-term strength and improved corrosion resistance
and therefore, greater life for your constructions. ACC Fly-ash based PPC is an eco-friendly
cement
What are the advantages of using ACC Fly-ash based PPC?
In concrete made from ordinary cements, moisture reacts with calcium hydroxide in concrete to
form calcium bicarbonate, which leaches out of the concrete, leaving pores that reduce its


strength. ACC Fly-ash based PPC has ingredients which react with calcium hydroxide to form
CSH gel, to provide additional strength, which actually makes the concrete grow in strength over
the years. It also produces less heat of hydration and offers greater resistance to the attack of
aggressive waters than normal Portland cement.
Can ACC Fly-ash based PPC be used for all jobs in construction?
ACC Fly-ash based PPC easily replaces OPC and provides additional advantages for practically
all types of construction applications - commercial, residential, bungalows, complexes,
foundation, columns, beams, slabs and RCC jobs. It is especially recommended for mass
concreting work, and where soil conditions and the prevailing environment take heavy toll of
constructions made with ordinary cements.
How ACC Fly-ash does based PPC stand up to corrosive environments?
Due to its inherent characteristics, ACC Fly-ash based PPC makes very corrosion resistant
concrete that is superior to concrete made with OPC. It is more impermeable to oxygen, CO2,
chlorides, etc. Leaching of alkalis is reduced and the alkaline environment around steel is
maintained.
Portland Slag Cement
This 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. PSC has many superior performance
characteristics which give it certain extra advantages when compared to Ordinary Portland
Cement
What is special about ACC PSC?
Compared to OPC, ACC PSC imparts some important additional advantages

• Reduction in free lime leaching.
• Ultimate higher strength.
• Improved workability reduced bleeding as well as segregation and corrosion.
• Denser, less permeable concrete and mortar.
• Better resistance to sulphates, chlorides, and CO2 and alkali-aggregates reaction.
• Less heat, reduced plasticity and drying shrinkage.
• Increased static modulus of elasticity.
• Increased serviceability with less deflection of members and micro cracks and reduced cost of
construction and maintenance.
All these factors make for a strong, durable, and longer lasting construction. ACC PSC benefits
the structure, protects the environment by reducing CO2 emissions and helps conserve energy.
Which is why it is often referred to as an eco-friendly cement.
The Federation International de la Precontrainte (FIP) Guide to Good Practice for "concrete
constructions in hot weather," states that if concrete is likely to be exposed to an environment of


sulphate-bearing water or soil, it is preferable to use a proven type of blended cement containing
ground granulated blastfurnace slag. Concrete made with ACC PSC has a higher density than
concrete made with OPC, and hence it improves the durability of concrete structures.
It can, therefore, be used for all purposes where OPC or PPC is used.
e) Area of operation
ACC cement operations today span the length and breadth of India, with 14 cement plant, 11
RMC unit and also 11 cement marketing offices. Leveraging the strong equity and goodwill of
the house mark, the company has a portfolio of national brands such as ACC Super, ACC Samrat
and ACC Suraksha etc.
ACC’S Plant- wise Capacity:
Name of the Plant Location Capacity (MTPA)

Bargarh Cement Work Bargarh 0.96
Tikaria Cement Grinding
Tikaria 2.00
And Packing Plant
Lakheri Cement Works Lakheri 0.60
Kymore Cement Works Kymore 1.70
Chaibasa Cement Work Chaibasa 0.87
Sindri Cement Work Sindri 0.60
Jamul Cement Work Jamul 1.58
Chanda Cement Work Chanda 1.00
Wadi Cement Work Wadi 2.11


New Wadi Cement Work Wadi 2.60
Madukkarai Cement Work Madukkarai 0.96
f) Ownership pattern
Ownership & Shareholding Pattern
The house of TATA was intimately associated with ACC up to 1999, after which the Tata Group
sold all 14.45% of its shareholding in ACC in three stages to subsidiary companies of Gujarat
Ambuja Cements Limited (GACL).
In January 2005, the Holcim Group of Switzerland announced its plans to enter into a long-term
strategic alliance with the 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 announced its bid to make an open offer to ACC shareholders, through Holdcem
Cement Pvt Limited and ACIL, to acquire a majority shareholding in ACC. An open offer was
made by Holdcem Cement Pvt. Limited along with Ambuja Cements India Ltd. (ACIL),
following which the shareholding of ACIL increased to 34.69% of the Equity share capital of
ACC.
The shareholding pattern in ACC (as on March 31, 2010) was as follows:
Promoters & Persons in Control 46.21%
Ambuja Cement India Private Limited, Mumbai 45.92 %
Holderind Investments Limited, Mauritius 0.29%
Institutional Shareholders 32.61%

Non-institutional Shareholders 20.78 %
Shares against Depository Receipts 0.40%
TOTAL 100.00 %
g) Competitors Information
Major Player’s of the Industry
There are a number of players prevailing in the cement industry in India. However, there are
around 20 big names that account for more than 70% of the total cement production in India. The
total installed capacity is distributed over around 129 plants, owned by 54 major companies
across the nation.
Following are some of the major names in the Indian cement industry:

Company Production Installed Capacity

ACC 17,902 18,640
Gujarat Ambuja 15,094 14,860
Ultratech 13,707 17,000
Grasim 14,649 14,115
India Cements 8,434 8,810
JK Group 6,174 6,680
Jaypee Group 6,316 6,531
Century 6,636 6,300
Madras Cements 4,550 5,470
Birla Corp. 5,150 5,113
h) Infrastructural Facilities
IT Infrastructure
ACC was among the first Indian companies to adopt automation of information technology. We
started computerizing our systems as early as 1968 - a commitment to progress through the
harnessing of relevant available technologies, a practice that continues even today.
We have traveled a long way from our early days when we were using simple keypunching
machines. Significant improvements have been made in application systems and infrastructure
since then - from Batch processing to on-line systems, from IBM 1401 and Data General system
to the latest Linux/UNIX and Windows 2003 based machines. We have made timely transitions
determined by available technologies and business requirements.
In February 2007 the company made a quantum jump from in-house developed systems using
Oracle 9i and Developer 6i to an ERP (SAP) based solution. This decision was based solely on
our strategic objectives and the business benefits that we expect to derive from implementing
such a solution. With this move we also aligned people, business processes and technologies
across the country.
The Company has an Intranet Portal called ‘Accelerate’ which is dedicated to employees. The
portal’s content is based on Personal information relating to Human Resource matters,
Performance Management, as well as other information of use to employees such as the latest
news on company affairs, developments on sustainable development, house magazines and
newsletters.
Being a large organization with a countrywide network of manufacturing, marketing and R&D
centers, we have invested in the creation of a comprehensive infrastructure that allows free flow
of information across the organization. This enables almost instant communication between all
levels in the organization. A hybrid WAN network connects each of our 275 plus locations. A
judicious mix of VSAT and VPN links ensure adequate connectivity between these locations.
Each manufacturing location has a well designed LAN to meet its needs.
IT in ACC is well placed to master future expansions of our core businesses.
Other infrastructure facilities:


1. Quarters for the Employees
2. Hygiene Environment
3. Canteen
4. Joggers Parks
5. Club
I) Achievement/Award
ACC – ACHIEVEMENTS
Year Achievement
1936 The Associated Cement Companies Limited incorporated on August 1st
1947 India's first entirely indigenous cement plant installed at Chaibasa.
1955 ACC Sindri uses waste material - calcium carbonate sludge -from fertilizer factory at
Sindri to make cement
1956 Bulk Cement Depot established at Okhla, Delhi
1961 Blast furnace slag, (a waste by-product from steel) from TISCO used at ACC
Chaibasa to manufacture Portland Slag Cement.
1961 Oilwell Cement manufactured at ACC Shahabad for cementation of oilwells upto a
depth of 6,000 feet.
1961 Manufacture of Hydrophobic (waterproof) cement at ACC Khalari.
1965 Manufacture of Portland Pozzolana Cement using naturally available materials. An

eco-friendly cement using an eco-friendly process.
1966 ACC inducts use of pollution control equipment and high efficiency sophisticated
electrostatic precipitators for its cement plants and captive power plants decades
before it becomes mandatory to do so.
1978 Introduction of the energy efficient pre-calcination technology for the first time in
India.
1982 Commissioning of the first 1 MTPA (million tonne per annum) plant in the country at
Wadi, Karnataka.

1984 ACC achieves a breakthrough in import substitution by developing and supplying a

special G type of oil well cement to ONGC.
1987 ACC develops a new binder, working at sub-zero temperature, which is successfully
used in the Indian expedition to Antarctica.
1992 Incorporation of Bulk Cement Corporation of India, a JV with the Government of

India.
1993 Commercial manufacture of ready-mixed concrete at Mumbai.
2001 Commissioning of the new Wadi plant of 2.6 MTPA capacity in Karnataka, the
largest in India, and among the largest sized kilns in the world.
2002 ACC wins PHDCCI Good Corporate Citizen Award
2003 IDCOL Cement Ltd becomes a subsidiary of ACC

2004 IDCOL Cement Limited is renamed as Bargarh Cement Limited (BCL).
2004 ACC raises US $ 100 million abroad through Foreign Currency Convertible Bonds
(FCCB’s) for US$ 60 million and Global Depository Shares (GDS’s) for US $ 40
million. Both offerings are listed on the London Stock Exchange.
2004 ACC named as a Consumer Superbrand by the Superbrands Council of India,

becoming the only cement company to get this status.
2004 GreenTech Safety Gold and Silver Awards awarded to Madukkarai Cement Works
and Katni Refractory Works by Greentech Foundation for outstanding performance in
Safety Management System.
2005 ACC receives the CFBP Jamnalal Bajaj Uchit Vyavahar Puraskar Certificate of Merit
– 2004 from Council For Fair Business Practices.
2005 Holcim group of Switzerland enters strategic alliance with Ambuja Group by
acquiring a majority stake in Ambuja Cements India Ltd. (ACIL) which at the time
held 13.8 % of the total equity shares in ACC. Holcim simultaneously makes an open
offer to ACC shareholders, through Holdcem Cement Pvt. Limited and ACIL, to
acquire a majority shareholding in ACC. Pursuant to the open offer, ACIL’s
shareholding in ACC increases to 34.69 % of the Equity share capital of ACC.
2005 Commissioning of Modernisation and Expansion project at Chaibasa in Jharkhand,

replacing old wet process technology with a new 1.2 MTPA clinkering unit, together

with a captive power plant of 15 MW.

2005 Financial accounting year of the company changed to calendar year January-
December
2006 Subsidiary companies Damodhar Cement & Slag Limited, Bargarh Cement Limited
and Tarmac (India) Limited merged with ACC
2006 ACC announces new Workplace policy for HIV/AIDS
2006 Change of name to ACC Limited with effect from September 1, 2006 from The
Associated Cement Companies Limited.
2006 ACC receives Good Corporate Citizen Award 2005-06 from Bombay Chamber of
Commerce and Industry
2006 New corporate brand identity and logo adopted from October 15, 2006
2006 ACC establishes Anti Retroviral Treatment Centre for HIV/AIDS patients at Wadi in
Karnataka– the first ever such project by a private sector company in India.
2007 ACC partners with Christian Medical College for treatment of HIV/AIDS in Tamil
Nadu
2007 Sumant Moolgaokar Technical Institute completes 50 years and reopens with new
curriculum
2008 Ready mixed concrete business hived off to a new subsidiary called ACC Concrete
Limited.
2008 ACC Cement Technology Institute formally inaugurated at Jamul on July 7.
2008 First Sustainable Development Report released on June 5.
2008 ACC wins CNBC-TV18 India Business Leader Award in the category India
Corporate Citizen of the year 2008
2008 Project Orchid launched to transform our Corporate Office, Cement House into a
green building.
2009 ACC received the Jamanalal Bajaj "Uchit Vyavahar Puraskar" of Council for Fair
Business Practices
2009 ACC is allotted coal blocks in Madhya Pradesh and West Bengal.
2009 ACC's new Grinding plant of capacity 1.60 million tonnes inaugurated at
Thondebhavi in Karnataka.
2010 Kudithini Cement Grinding Plant inaugurated in Karnataka on January 4, 2010 with a
capacity of 1.1 MTPA of Portland Slag Cement.
2010 ACC acquires 100 percent of the financial equity of Encore Cements & Additives
Private Limited which is a slag grinding plant in Vishakhapatnam in coastal Andhra

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k) Future growth and prospectus:

ACC’S strategy in regard to capacity addition has been to add capacity to maintain its
Market leadership in the company’s score and strategic markets. In line with this during the year
the capacity at Kymore, Lakheri and Gagal cement plants was together enhanced by around 9
Lakhs tones to serve the markets of North India including U.P. The commissioning and
stabilization of captive power plant at Kymore and Jamul in Madhya Pradesh, has ensured
uninterrupted production at both these plants which will allow further strengthening of the
company’s position in Bihar and West Bengal so that the market leadership of ACC in both these
markets is maintained.
With the commissioning of the new 20 lakhs tone production line at Wadi, Karnataka,
ACC’s market share in Maharashtra and Karnataka is expected to rise significantly, with the
commissioning of this line. Wadi plant with the annual capacity of 40 lakhs tones will have the
distinction of being one of the largest cement plants in the country at one site. The expansion of
the plants at Chanda, Maharashtra, will enhance the capacity to 9 Lakh tones annually and
improve its cost competitiveness. The company will then be in a better position to services the
markets of vidharbha and marathwada in the state of Maharashtra. The expansion of cement
plant at Madukkarai, Tamil Nadu, will allow the company to reach a production level of 9.6 lakh
tones annually to maintain its market leadership in North Kerala.
Being the old cement company, the company had to contend with the disadvantages of
the higher cost in manpower and other operational areas. Increased share of blended cement in
total production in expected to improve the coat competitiveness of some of the plants.
Distribution costs for cement are planned to be future reduced by 5%. With all the above
measures, the company is aiming to achieve increased production at lower cost.
Cement demand during the year is expected to register, a normal growth of 8-10% on
the back of the high growth in the previous year. This scenario is likely to lead to a reasonable
balance is supply and demand resulting in remunerative price in the market place.

MCKINSEY’s 7S framework
Structure:
A company’s structure affects its strategic planning and its ability to change. A
company’s structure may have a customer or geographical focus. It contains the salient features
of the organizational chart and interconnections within the organization.

ORGANISATION STRUCTURE
Senior Senior
Manager
Manager
Manager
Manager
Works
Manager
Manager
Manage
Manager Vice
Human President
Maintenance
Manager
Engineering
Finance
Production
Instruction
Diesel
HRD
Mine
Services

Skills:
Closely related to staff are the distinctive abilities and talents that a company possesses.
Skills may range from ability of a staff to speak Spanish to an understanding of Statistics to
computer literacy etc.
Style:


Culture or Style is the aggregate of behaviors, thoughts, beliefs and symbols that is
conveyed to the people throughout an organization over time. Since it is very hard to change a
company’s ingrained culture, it is important to bear in mind when developing a new strategy.
In The Associated Cement Companies Limited. They follow participative style; Decision
Making is mostly made by the top level management. In the top to down manner. Day to day
decisions are taken by top level management & meddle management. The supervisors do not
have any authority in decision making.
Strategy:
Strategy refers to those actions that a company plans in response to or in anticipation of
changes in its external environment, its customers and its competitors. It is a plan or course of
action leading to the allocations of an organization’s finite resources to reach identified goals.
Push Strategy: In this type of marketing strategy the activities are incentives, gifts etc are
given to dealers to introduce them to enhance the sale of cement to end users. The marketing
activity is not implied upon end users in this case, the idea is to push the product through the help
of the dealers and other intermediates.
Pull Strategy: Here the marketing activities are focused on the end users by providing them
with gifts, incentives; mason meet engineers meet, etc. so that demand is created in the market
and is sold to dealers in lieu of demand created in the market by end users.
Systems:
The procedures both formal and informal, by which an organization operates and
gathers information constitutes the systems of the company. This model is concerned with the
systems that allocate and control money and materials as well as gather information
Staff:


Staff means the human resource systems which include appraisals, training, wages and
the intangibles such as employee motivation, morale and attitude. With a motivated workforce
companies are able to adapt well and compete.
Shared Value:
Shared values refers to the core values and ideas espoused and shared by key Members
of the organization studies by Hage and Dewer (1979) and Khandwalla (1984) suggest that
shared values importantly determine the cultural orientations of an Organization
SWOT ANALYSIS
STRENGTHS
The main strength of ACC is

➢ Having largest network in India.
➢ It has its own power plant in wadi plant.
➢ Having 11 marketing offices in India.


➢ It is having over 9000 dealers throughout the country.
➢ Production of ACC cement has been increasing yearly. After merging with Holcim group of
Switzerland in 2005
➢ It has15 Cement Production Factories throughout the country
➢ It has 21 Area Offices&160 Warehouses throughout the country.
➢ It gets fly ash at free of cost from Raichur power plant
➢ Trade mark of ACC
➢ Certification by ISO-9001
➢ Own railway wagons to transport. ACC has constructed its own siding which connects to the
railway junction.
➢ Finally the good understanding between Management and Employees.
WEEKNESS
➢ The operating expenses of the company are comparatively high which may affects in its
profit earning capacity.
➢The technology used in the old wadi plant is not latest one compared to new wadi plant
➢ The old wadi plant is not modernization compared to new wadi plant
OPPORTUNITIES
➢ The ACC Company has the opportunity to become the market leader in cement industry
➢ It is also have opportunity to expand its market share by introducing new products with
reasonable price.
➢ It has opportunity to increase its production by adopting latest technology.
THREATS
➢ Competition with other cement industry


➢ Changes in technology level may affects the company
➢ Fluctuation in Government polices may affects the company
LEARNING EXPERIENCE

To experience as to how a manufacturing concern work, it was a great experience to undergo Inplant
training at ACC Ltd. Wadi. Inplant training has created a sense of practical exposure and to what
actually an organization is and how theoretical concepts are practiced in reality. Even came to know
many things about the functioning of the company in accordance with the present market trends. The
interaction with the company gave me an insight and a firsthand experience of the industrial scenario
in the competitive environment outside the realms of the institute.
ACC is one of the largest cement manufacturing companies in India. While in the
process of Inplant training, I have learnt various aspects of management from different
department, mainly like raw mails, Kiln department and cement mill and the importance of each
department and their contribution towards the achievements of the company’s objectives.
Human relation was realized, the importance of group effort when compared to
individual effort in getting things done through. Employees/workers with different skills, talents,
abilities and attitudes are being coordinated and utilized in good way to achieve organization
goal.
I learnt that cement is treated as commodity and not as a product in the market by
marketers and dealers. During four weeks, I learnt a lot about the Indian cement industry and
also about how cement is manufactured, how it is transported and distributed to dealers. It was
totally a new experience entering into the organization. I spent most of my time in visiting
various units and various departments, interacting with people. Employees from every
department helped me in getting the required information for the successful completion of this
Inplant training. They cooperated very well when I has to disturb them with so many queries in
my mind to be cleared from the concerned person of the respective departments which helped me
in acquainting with the practical knowledge about the overall functioning of the organization.
Hence, I would like to say that Inplant training has guided me in improving my skill,
talent ability, attitude for future in contributing to the organization and nation.

PART- B
EXECUTIVE SUMMARY
A study has been conducted on the Supply Chain Management in the ACC Limited,
Wadi. ACC Limited is the number one company in cement industry of India. This project


was conducted to study the supply chain management of ACC Limited, Wadi. The study
makes use both secondary data and primary data.
The Indian cement industry is of 153 million tones capacity. This being highly affected
by the recent price hike of 20%, India is the world’s second largest producer of cement.
ACC contributes to the 12.6% of the total production of cement in India. The company’s
production capacity has already reached 1.79 million tonnes per year. The company is
striving hard to explore new markets for its products.
The company has a planned and systematic distribution network the company has both
type of distribution network namely direct selling and indirect selling. The indirect
selling is done through distributors. The retailers, wholesalers and dealers do not play any
role in the distribution network, because it is not consumer product. It every territory the
company has appointed one marketing executive and a distributor.
Introduction
The Indian cement industry with a total capacity of about 190 m tonnes in
financial year-2008 is the second largest market after China. Despite the fact that the Indian
cement industry has clocked production of more than 100 m tonnes for the last five years,
registering an average growth of nearly 9%, the per capita consumption of around 150 kgs
compares poorly with the world average of over 260 kgs and more than 450 kgs in China. This,

more than anything underlines the tremendous scope for growth in the Indian cement industry in
the long term .Although consolidation has taken place in the Indian cement industry with the top
five players controlling almost 50% of the capacity, the balance capacity still remains pretty
fragmented. 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.
While the southern region always had excess capacity in the past owing to
abundant availability of limestone, the western and northern region is the most lucrative markets
on account of higher income levels. However, with capacity addition taking place at a slower
rate as compared to growth in demand, the demand supply parity has been restored to some
extent in the Southern region for the medium term. Considering the pace at which infrastructural
activity is taking place in different regions, the players have lined up expansion plans
accordingly.
Despite the growth of the Indian cement industry, India’s per capita production of
115 kilograms per year lags the world average of over 250 kgs and China’s production of more
than 450 kgs per person. Clearly there remains room for tremendous growth in the industry in
India. But if India is to reach its potential, the free hand of the market must be left unfettered.
For this to happen, the Indian government must make sure that foreign companies that have a
history of price fixing and market collusion receive appropriate regulation. If market shares get
fixed, India will be the loser and the gap between India and China will only grow in the race to
become the next economic superpower.
OBJECTIVE S OF THE STUDY
➢ To know about the procurement process of raw material.
➢ To study about the cement industry in general.
➢ To study the Production process of cement.


➢ To study the distribution channel of company.
➢ To know the dealers opinion about the supply of cement product.
SCOPE OF THE STUDY

A number of procedures are involved in the procurement of raw materials, storage and
manufacturing procedure. Moreover transportation of the finished product is also an important
aspect of the supply chain. The scope of the study conducted by me covers the following aspects
of the supply chain.
➢ Choosing the supplier and receiving the raw materials.

➢ Inspection and storage of the received goods.
➢ Transfer of the stored raw materials for manufacturing process.
➢ Storage of the finished product.
➢ Sending the stock to distributers.
METHODOLOGY USED
A research design is a method and procedure for acquiring information needed to solve the
problem. A research design is a basic plan that helps in data collection or analysis. It specifies the
type of information to be collected, the source and collection procedure. A good research
decision will ensure that the data collected is relevant to the objectives to be achieved.
Data type
The data is of primary data as well as secondary data collected through structured and
unstructured interviewing and in depth discussion with several authorities of the company.
The methodology followed in this study includes the procedure of Supply Chain
Management and relation with the dealers, which includes the distribution procedure to be
followed by the company.
RESEARCH DESIGN
Research is a systematic and intensive study directed to words a more complete
knowledge of the subject studied. Research design is a framework for conducting the marketing
research project. It specifies the details of how the project should be conducted. In the
preliminary stage of the research work unstructured, undisguised exploratory was carried out.


Analysis of primary and secondary data which is collected from a group of Managers and
Dealers was made to find about the process of supply chain management which is carry out in
the factory and outside the factory.
Limitations of the Study

1. It is only one time study.
2. The study is restricted to ACC Wadi plant and the findings may not be applicable to any
other plant.
3. Non-coverage error – because of inadequacies in the sampling frame
4. Opinions may different from the actual.
5. Vague responses from the respondents
Basic Concepts of Supply Chain Management

Supply chains encompass the companies and the business activities needed to design,
make, deliver, and use a product or service. Businesses depend on their supply chains to provide
them with what they need to survive and thrive. Every business fits into one or more supply
chains and has a role to play in each of them. The pace of change and the uncertainty about how
markets will evolve has made it increasingly important for companies to be aware of the supply
chains they participate in and to understand the roles that they play. Those companies that learn
how to build and participate in strong supply chains will have a substantial competitive
advantage in their markets.
The practice of supply chain management is guided by some basic underlying concepts that have
not changed much over the centuries. Several hundred years ago, Napoleon made the remark,
“An army marches on its stomach.” Napoleon was a master strategist and a skillful general and
this remark shows that he clearly understood the importance of what we would now call an
efficient supply chain. Unless the soldiers are fed, the army cannot move. Along these same
lines, there is another saying that goes, “Amateurs talk strategy and professionals talk logistics.”
People can discuss all sorts of grand strategies and dashing maneuvers but none of that will be


possible without first figuring out how to meet the day-to-day demands of providing an army
with fuel, spare parts, food, shelter, and ammunition. It is the seemingly mundane activities of
the quartermaster and the supply sergeants that often determine an army’s success. This has
many analogies in business.
The term “supply chain management” arose in the late 1980s and came into widespread use in
the 1990s. Prior to that time, businesses used terms such as “logistics” and “operations
management” instead. Some definitions of a supply chain are offered below:
“A supply chain is the alignment of firms that bring products or services to market.”—from
Lambert, Stock, and Ellram in their book Fundamentals of Logistics Management.
“A supply chain consists of all stages involved, directly or indirectly, in fulfilling a customer
request. The supply chain not only includes the manufacturer and suppliers, but also transporters,
warehouses, retailers, and customers themselves.”— from Chopra and Meindl in their book
Supply Chain Management: Strategy, Planning, and Operations.
“A supply chain is a network of facilities and distribution options that performs the functions of
procurement of materials, transformation of these materials into intermediate and finished
products, and the distribution of these finished products to customers.”—from Ganeshan and
Harrison at Penn State University in their article ‘An Introduction to Supply Chain’.
If this is what a supply chain is then we can define supply chain management as the
things we do to influence the behavior of the supply chain and get the results we want. Some
definitions of supply chain management are:
“The systemic, strategic coordination of the traditional business functions and the tactics across
these business functions within a particular company and across businesses within the supply
chain, for the purposes of improving the long-term performance of the individual companies and
the supply chain as a whole.”—from Mentzer, DeWitt, Deebler, Min, Nix, Smith, and Zacharia
in their article Defining Supply Chain Management in the Journal of Business Logistics.


“Supply chain management is the coordination of production, inventory, location, and
transportation among the participants in a supply chain to achieve the best mix of responsiveness
and efficiency for the market being served.”—from Essentials of supply chain management.
(John Wiley & Sons)
There is a difference between the concept of supply chain management and the traditional
concept of logistics. Logistics typically refers to activities that occur within the boundaries of a
single organization and supply chains refer to networks of companies that work together and
coordinate their actions to deliver a product to market. Also traditional
logistics focuses its attention on activities such as procurement, distribution, maintenance, and
inventory management. Supply chain management acknowledges all of traditional logistics and
also includes activities such as marketing, new product development, finance, and customer
service.
In the wider view of supply chain thinking, these additional activities are now seen as
part of the work needed to fulfill customer requests. Supply chain management views the supply
chain and the organizations in it as a single entity. It brings a systems approach to understanding
and managing the different activities needed to coordinate the flow of products and services to
best serve the ultimate customer. This systems approach provides the framework in which to best
respond to business requirements that otherwise would seem to be in conflict with each other.
Taken individually, different supply chain requirements often have conflicting needs. For
instance, the requirement of maintaining high levels of customer service calls for maintaining
high levels of inventory, but then the requirement to operate efficiently calls for reducing
inventory levels. It is only when these requirements are seen together as parts of a larger picture
that ways can be found to effectively balance their different demands. Effective supply chain
management requires simultaneous improvements in both customer service levels and the
internal operating efficiencies of the companies in the supply chain. Customer service at its most


basic level means consistently high order fill rates, high on-time delivery rates, and a very low
rate of products returned by customers for whatever reason. Internal efficiency for organizations
in a supply chain means that these organizations get an attractive rate of return on their
investments in inventory and other assets and that they find ways to lower their operating and
sales expenses.
There is a basic pattern to the practice of supply chain management. Each supply chain
has its own unique set of market demands and operating challenges and yet the issues remain
essentially the same in every case. Companies in any supply chain must make decisions
individually and collectively regarding their actions in five areas:
1. Production—What products does the market want? How much of which products should be
produced and by when? This activity includes the creation of master production schedules that
take into account plant capacities, workload balancing, quality control, and equipment
maintenance.
2. Inventory—What inventory should be stocked at each stage in a supply chain? How much
inventory should be held as raw materials, semi-finished, or finished goods? The primary
purpose of inventory is to act as a buffer against uncertainty in the supply chain. However,
holding inventory can be expensive, so what are the optimal inventory levels and reorder points?
3. Location—Where should facilities for production and inventory storage be located? Where
are the most cost efficient locations for production and for storage of inventory? Should existing
facilities be used or new ones built? Once these decisions are made they determine the possible
paths available for product to flow through for delivery to the final consumer.
4. Transportation—How should inventory be moved from one supply chain location to another?
Air freight and truck delivery are generally fast and reliable but they are expensive. Shipping by
sea or rail is much less expensive but usually involves longer transit times and more uncertainty.
This uncertainty must be compensated for by stocking higher levels of inventory. When is it
better to use which mode of transportation?

5. Information—How much data should be collected and how much information should be
shared? Timely and accurate information holds the promise of better coordination and better
decision making. With good information, people can make effective decisions about what to
produce and how much, about where to locate inventory and how best to transport it.
The sum of these decisions will define the capabilities and effectiveness of a company’s
supply chain. The things a company can do and the ways that it can compete in its markets are all
very much dependent on the effectiveness of its supply chain. If a company’s strategy is to serve
a mass market and compete on the basis of price, it had better have a supply chain that is
optimized for low cost. If a company’s strategy is to serve a market segment and compete on the
basis of customer service and convenience, it had better have a supply chain optimized for
responsiveness. Who a company is and what it can do is shaped by its supply chain and by the
markets it serves.
ANALYSIS/DESIGN
Purchasing Of Raw Material

RAW MATERIALS
Raw materials are the major input into an organization and from the bulk, which gets
converted into output .As any break in the supply of raw materials will keep the production lives idle,
their importance can be easily visualized.
The importance of raw material inventory is to act as buffer between procurement and
manufacturing .there are two important factors, which determine the size of the raw material
inventory .those depend on the production technology .One is the consumption rate and the other
is the critically or importance of the item.
General in gradients use for manufacturing cement are as under:
➢ Limestone.
➢ Additives aluminous late rite, hematite.
➢ Gypsum chemical salt plant and mineral.
RAW MATERIALS: PURCHASED FOR WADI PLANT

I. Fuel - Coal
➢ Coal is purchased from nationalized coal mines from Singarenni Collieries, (A.P)
➢ Western Coal fields (Maharashtra)
I. Gypsum
➢ Mineral Gypsum is purchased from Rajasthan state mines.

➢ Marine Gypsum is purchased from Tuticorin Roshan Trading C., phospo Gypsum is
by product of fertilizers plant, and is purchased from Rastriya Fertilizer and
Chemicals, Mumbai.
➢ Albright Murarji.
I. Lime stone and Red Shale:
➢ Company is having its own mines

I. Iron ore Fines (Hematite)
➢ This is purchased from various suppliers from Hospet, Bellary and

➢ Amingad.
I. Packing Materials
HDPE bags are purchased from

➢ Ashirwad, Bangalore.
➢ Tusin NEC Bangalore.
➢ Balaji Polymers, pondycherry
➢ R.K Polysack, Gulbarga

Source of Power:
➢ It has own power plant.
➢ Purchased power from KPTCL
➢ From Tata Electric Company
➢ Diesel Generation (DG) Set Power.
Production Department
The production department is concerned with the planning and organization of the
production system .It is responsible with the overall situation of the plant and the machinery.
Production planning and organization as well as overall capacity utilization.
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.
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.
ROUTING SCHEDULING
As per plant is running round the clock shift system requires. In our plant the schedule are as
under:
1. ‘A’ Shift 8.00 AM to 4.00 PM
2. ‘B’ Shift 4.00 PM to 12.00 PM
3. ‘C’ Shift 12.00 PM to 8.00 AM
4. General Shift 8.00 AM to 5.00 PM
(1-hour lunch)
MANUFACTURING PROCESS OF ACC WADI PLANT


I ) QUARRY
The major raw material for cement production is limestone. The limestone most suitable for
cement production must have some ingredients in specified quantities i.e., calcium carbonates, silica,
alumina, iron, etc. Typically, cement plants locations are based upon the availability of good quality
limestone in the vicinity. The quarrying operations are done by the cement producer using the open
cast mining process.
Quarrying is done through drilling and subsequently, using heavy earth moving equipment
such as bulldozers, pay-loaders and dumpers. The quarried raw material is then transported to the
cement plant, using mechanical conveying equipment such as ropeways or belt conveyors, or by
vehicles like wagons and trucks.
Lime stone mining is the first phase of cement manufacturing process. Ours is open cast,
mechanized mining. After removing 2 to 3 Miters, of over burden clay, grades will be classified (I
bench low grade: 8 to 10 Miters, in depth. II and III bench high grade 10 to 12 Miters, in depth) then
drilling and blasting will be done. The material will be loaded by shovels and transported to Crusher
by Dumpers. This is the first Phase in the cement manufacturing process. In this department there are
around 112 employees are working these includes 20 company grade officers and others are workers.
This department works 24 hrs of the day with the capacity of 20,000 tons per day. In this department
there are two crushers are installed one is for new plant and other one is for old plant with the
capacity of 1000 and 850 tons per hr respectively. The department having the 7 dumpers almost all
dumpers fitted with Air Conditioner. It has capacity over 80 to 85 tones.
II ) LIMESTONE CRUSHING
The quarried limestone is normally in the form of big boulders, ranging from a few
inches to meters in size. These varying sizes of limestone need to be crushed to a size of about 10
mm in order to be prepared for finish-grinding.
There are mainly two types of crushers available for this purpose- compression type or
impact type crushers. There are many types of compression type crushers such as jaw crusher,
gyratory crusher, cone crusher, roll crusher. The impact technology is used in hammer
crusher/impact crusher. Crushing is done either in two stages or in a single stage. In the two
stage crushing system, a compression type crusher is used in the first stage for raw crushing,
followed by impact/hammer crusher in the second stage. In single stage crushing, an impact type
crusher is used. The selection of the crusher depends mainly on the characteristics of the raw
materials. This selection is further guided by the particle-size distribution requirements of the
down-stream equipment such as raw mills and lastly by financial considerations.
III ) RAW MILL


This is second and main department of the cement manufacturing process. The
department mixes the raw material such as Hematite Bauxite specified by the laboratory and
limestone will mixes by the holder of the raw mill.
Additives Storage Hopper

In order to get the required composition of raw material, certain additives such as iron
ore, bauxite, literate, quartzite and fluorspar are added in required quantities.
These additives are stored at the plant in separate hoppers and are extracted using belt
conveyors in conjunction with belt-weighing equipment. This ensures that only the required
quantities are extracted and added to the raw material. There are 4 hoppers used in this
department;
➢ One hopper is used for low grade lime stone
➢ One hopper is used for high grade lime stone
➢ One hopper is used for bauxite
➢ One hopper is used for hematite
There are total six raw mill is there in which five mills are installed in old and other one
is installed in new plant with the capacity of 60, 70, 70, 120 in old plant mill and new plant raw
mill capacity is more than 500.first, second and third raw mill controlled by the in this
department only and fourth and fifth are controlled by kiln department. The raw material is
finish-ground before being fed into the kiln for clinkering. This grinding is done using either ball
mills or vertical roller mills (VRM). The raw material is simultaneously dried.
Blending and Storage Silo
Normally there are various sources of limestone, each with different qualities, which are
added with various additives to get the required composition of raw mix. As there are various
sources of raw materials, it becomes necessary to blend and homogenize these different materials
efficiently to counteract fluctuation in the chemical composition of the raw meal.
The variations in the composition of kiln feed have very adverse impacts on the
efficiency of the kiln. It results in undesired coating and ring formation inside the kiln. In order
to blend and homogenize the raw materials properly, continuous blending silos are used.
IV ) PRE-HEATER
The most important activity in cement manufacturing is clinkering of raw material.

Clinkering takes place in the kiln and the preheater system. Preheater systems offer heat transfer
from the hot kiln gases.
Gas Conditioning Tower and ESP

The conditioning tower is used to reduce the temperature and to increase the moisture
level of the dusty exhaust gas from the kiln, before it is passed through the bag house and ESP’s.


It is called a conditioning tower because it conditions the hot gas, thus making it more suitable
for the ESP and bag house to extract dust from it.
The Electrostatic Precipitators are used in cement plants particularly for removal of dust
from the exit gases of cement kilns and from the exhaust air discharged by dryers, combined
grinding and drying plants, finishing mills and raw mills through water injection. Through
ESP’s, the dust-laden gas is made to flow through a chamber usually horizontally, during which
it passes through one or more high voltage electric fields formed by alternate discharge
electrodes and plate type collecting electrodes. By the action of electric field, the dust particles,
which have become electrically charged by negative gas ions which are formed at the discharge
electrodes and attach themselves to the particles, fly to the collecting electrodes and are
deposited there.
V) KILN
Kiln is the heart of any cement plant. It is basically a long cylindrical-shaped pipe, and
rotates in a horizontal position. Its internal surface is lined by refractory bricks. Limestone and
additives are calcined in this. The output of the kiln is called clinker.
Kiln is department in which the raw material will burn. There are total 4 kilns are
installed the first kiln was installed in the year 1965 with the Capacity of 600 tonnes now its
capacity is around 1250 tonnes per day, third Was established in the year 1983 with the capacity
of 3000 tonnes per day now its capacity is around 4800 tonnes per day. The fourth kiln is
installed in new plant in the year 2002 with capacity of 7000 tonnes per day.
In the kiln the raw materials are burn in the temperature of 1500 degree Celsius and raw
material will be converted into clinker and send this clinker to the cooler and cooled clinker will
be stored in the clinker silo. In the kiln department there are around 150 employees are working
including the officers.
VI) COOLER
The clinker coming out of the kiln is hot. It is cooled in a set-up called a cooler. In the
cooler, cold air is blown to effect heat exchange between hot clinker and cold air.
VII ) CLINKER SILO
The clinker silo is a silo where clinker will be stored .The output of the kiln is stored
before it is fed to the cement mill for conversion to cement. This storage is called clinker storage,
if it is used for clinker storage purpose. The capacity of silo is over 10000 tonnes.
VIII ) CEMENT MILL

Clinker, along with additives, is ground in a cement mill. The output of a cement mill is
the final product viz. Cement. In a cement mill, there is a cylindrical shell lying horizontal which
contains metallic balls and as it rotates, the crushing action of the balls helps in grinding the
clinker to fine powder.
The bag house is used to remove dusty particles from discharge of different equipment
such as cement mill, coal mill and kiln. In a bag house system discharge gas containing dusty
particles is passed through a series of bags made of strong fabrics. There are five cement mills
are installed in wadi cement plant The capacity of these cement mills is 40 tonnes per hour for
first three cement mills, 110 tonnes per hour for fourth and fifth cement mills. The main function
of the cement mills is converting the raw material into cement and transfer cement to
packinghouse silos.
X) PACKING
Cement is extracted from the silo and filed in Packer Hoppers, from where the material will
flow to the Packer Machine through bucket elevator and air slides. The cement will be packed in the
cement bags as per the specification of the company and dispatch these cement bags according to the
order of the cement in the market with six packers in each plant. The department works 24 hrs in day
with the total of 310 employees including officers. (Per shift around 100 employees). There are total
12 cement silo in that ten cement silos are installed in old plant and other two silos are installed in
new plant, with the capacity of 2000 tones for first six cement silos and around 4000 tonnes for next
four cement silos in the old plant and in the new plant 4000 tonnes for other two cement silos.
X) DISPATCH
This is last process of the cement-manufacturing department. The cement is packed with
the help of a rotary packer finally the 50 Kg. Cement bag is transported by belt conveyor and
stacked inside the Wagon/truck with the help of Wagon Loading and Truck Loading Machines.
Finally dispatched to the market. The Acc wadi plant dispatch the cement through Road transport
as well Railway
Road Transportation
ACC has assigned to various transporters
➢ Ragoji transport,
➢ KCB transport,
➢ United transport
Railways
ACC has constructed its own siding which connects to the railway junction. Bulk
cement in transported through special wagons.

Material Handling System:
The material handling systems are as follows.

➢ Belt convey or
➢ Pay loader.
➢ Tipper.
➢ Dozer
DISTRIBUTION CHANNEL NETWORK


The distribution of product takes place in two ways in the organization.
1. Rail or Wagon supply:
Cement is being distributed through wagon to its depots, which are situated across the
country. The freight is low compared to road transport. The 70% of the distribution is done through
wagon or rail transportation.
2. Road or Lorry supply:
25.30% of distribution is carried out through the road or lorry supply. The distribution is
made to its depots. Freight in case of road transportation is paid to the respective transporter on the
production of acknowledgment from the depots or dealers or by customers. At the unit at regular
intervals.
REGIONAL MARKETING OFFICES OF ACC

➢ Bangalore
➢ Bhopal
➢ Chandigarh
➢ Coimbatore
➢ Kanpur
➢ Kolkata
➢ Mumbai
➢ New Delhi
➢ Patna
➢ Pune
➢ Secunderabad
ANALYSIS AND INTERPRETATIONS
Hypotheses


Null Hypotheses
➢ HO 1) At least 95% of the dealers agree that the quantity is shipped as per the order.
➢ HO 2)At least 95% of the dealers agree that the increase in the price of cement has
adversely affected their sales.
➢ HO 3) At least 80% of the dealers agree that demand from the customers is the reason for
PPC grade to make highest sales.
Alternate Hypotheses
➢ H1 1) Less than 95% of the dealers agree that the quantity is shipped as per the order.
➢ H1 2) Less than 95% of the dealers agree that the increase in the price of cement has
adversely affected their sales.
➢ H1 3) Less than 80% of the dealers agree that demand from the customers is the reason
for PPC grade to make highest sales.
INTERPRETATIONS
1. Do you have your own warehouse?
Do you have warehouse?

Frequency %


Valid YES 45 90
NO 5 10
Total 50 100
Interpretation:
From the above graph it can be interpreted that out of 50 respondents (Dealers) 90% of
respondents have their own Warehouse and the remaining 10% do not have Warehouse
2. Is the quantity of cement shipped by the company as per order?
The quantity of cement shipped is as per order?

Frequency %
Valid YES 48 96
NO 2 4
Total 50 100
Interpretation:
From the above graph it can be interpreted that out of 50 respondents (Dealers) 96%
respondent agree that the quantity of the cement is shipped as per the order and only 4% dealers
not happy with the quantity of the cement is shipped as per the order.

3. Is delivery always done on time?
Is delivery always on time?

Frequency %
Valid YES 40 80
NO 10 20
Total 50 100
Interpretation:
the dealers say that there is delivery of cement is always on time. 20% disagree on the delivery
of cement on time.
1. Up to what extent the customers are satisfied with the promotional measures?
Up to what extent the customers are satisfied with the promotional measures.
Frequency Percent
Highly Satisfied 15 30
Satisfied 25 50
Dissatisfied 10 20
Total 50 100

Interpretation:
the dealers are satisfied, 20% are highly dissatisfied and the remaining 30% of the
respondents are highly satisfied with promotional measures given to customers.
1. Does the buyer ask for delivery?
Frequency %
Valid YES 46 92
NO 4 8
Total 50 100
Interpretation:
the dealers are asked for delivery, 8% are not asked for delivery.
2. Does the buyer ask for replacement is case of damage?
Does the buyer ask for replacement is case of damage?


Frequency %
Valid YES 49 98
NO 1 2
Total 50 100
Interpretation:
the dealers ask for replacement in case of damage,2% do not ask for replacement.
3. Which different grades of cement do you keep in your warehouse?
Frequency %
Valid OPC 43 Grade 21 42
OPC 53 Grade 18 36
Pazzolana Cement 11 22
Total 50 100.0
Interpretation:
the dealers stock OPC 43 Grade, 36% stock OPC 53 grade and remaining 22%stock
Pazzolana cement.

CONCLUSION
ACC is first Cement Company to get Super brand name. Now it has merged with
Holcim cements of Switzerland, which is world leader in cements, ACC is going for major
expansions and modernization of cement plants across the country. The company has
increase its production to 2.06 million tonnes January 2011 compared to 1.88 million tonnes
January 2010. And it is expected to increase in the coming years. SAP is going to be installed
in the coming August-06, by which all the departments will work efficiently. This
technology will help in increasing the production and reduction in cost of operating. The
company has the opportunity to become market leader in cement industry throughout
globally. As ACC was the leader, is the leader and it will be the leader in India.
➢ ACC has the largest supply chain network in India comprising of 15 cement factories 160
warehouses and 9,000 dealers.
➢ Railway and road transport used for inward and outward movement of materials and
products.
➢ The raw materials are procured preferably from the nearby areas so as to reduce the
transportation cost, though not at the cost of quality.
➢ If necessary raw material like Mineral Gypsum is purchased from as far as Rajasthan.
➢ Company uses Third Party Logistics (3PLs) for road transport.

SUGGESTIONS
➢ They should still improve their packaging so as to prevent damage to cement

especially during the rainy season.
➢ They should reduce the loading and unloading time from railway wagons so as to
avoid penalty from railways.
➢ They can further reduce the transport cost of raw material by finding suppliers in
nearby areas or even establishing their own mines.
➢ The company should promote the workers according to their ability.
➢ The company should motivate each and every employees
➢ The company should use new technological electrostatic precipitator to reduce the
pollution, as its atmosphere is full of dusty.
➢ The company should try to use latest technology to increase in their production.
➢ The company should compensate to the injured person.
➢ The company should place the person according to his qualification but not according
to the seniority.
➢ The company should minimize the wastages.

BIBLIOGRAPHY
• COMPANY’S OFFICIALS WEB-SITE : www.acclimited.com
• SEARCH ENGINE : www.google.com
• MARKETING MANAGEMENT : Philip Kotler.
• HUMAN RESOURCE MANAGEMENT : K. Ahwathappa.
• FINANCIAL MANAGEMENT : Prasanna Chandra.
• PRODUCTION AND OPERATION : K. Ahwathappa.
• MANAGEMENT

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(formerly The Associated Cement Companies Limited)

Project on Supply chain Management

Issues concerning Cement Industry

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FACTOR’S RESPONSIBLE FOR THE GROWTH OF THE SECTOR

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Mergers and Acquisitions (M&As)

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a) Background and inception of the company

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F.E. Dinshaw – the founder of ACC

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b ) Nature of the business carried

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Acc Cement Plants in India

Some ACC Facts:

➢Largest Network in India

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➢11 Marketing Offices

Its commitment to environment-friendliness, its high ethical standards in business

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C) Vision, Mission and Quality Policy

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QUALITY POLICY OF THE COMPANY

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Ordinary Portland Cements

What is special about ACC Fly-ash based PPC?

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Compared to OPC, ACC PSC imparts some important additional advantages

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Name of the Plant Location Capacity (MTPA)

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Institutional Shareholders 32.61%

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Company Production Installed Capacity

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1936 The Associated Cement Companies Limited incorporated on August 1st

1947 India's first entirely indigenous cement plant installed at Chaibasa.