A Study on Factors Influencing Dealer Preferences about a Particular Brand of Cement at ACC Limited Panchkula

Table of Content

A PROJECT REPORT ON A Study on factor influencing dealer preferences about a particular brand of cement At ACC Limited Panchkula [pic] FOR THE PARTIAL FULFILLMENT OF “MASTER IN BUSINESS ADMINISTRATION” 2009-2011 SUBMITTED TO:SUBMITTED BY: Mr. Neeraj SharmaAmit Dubey Project Guide Roll No-94512236888 Gian Jyoti Institute of Management & Technology (Affiliated to Punjab Technical University) CERTIFICATE This is to certify that the project titled “A Study on factor influencing dealer preferences about a particular brand of cement” has been submitted by Amit Dubey, Roll No-94512236888 under my guidance and supervision.

This project is being submitted by him for the fulfillment of requirement of the award of Masters of Business Administration from Gian Jyoti Institute of Management & Technology. This work is original and has not been submitted by him anywhere else for the award of any degree. Project Coordinator Nitin Chandel Associate Manager ACC Cement Ltd. ACKNOWLEDGEMENT Knowledge in itself is a continuous process. Nevertheless, a day getting a practical knowledge is an important thing & most important thing is the support, guidance, motivation and inspiration provided by the different persons of different sections.

This essay could be plagiarized. Get your custom essay
“Dirty Pretty Things” Acts of Desperation: The State of Being Desperate
128 writers

ready to help you now

Get original paper

Without paying upfront

I find no words to express my gratitude towards those who helped me directly or indirectly in making this report successful. I am indebted & thankful for the assistance received from various individuals. I would like to thank ACC Cement Ltd. , Panchkula for providing me with an opportunity to work on my summer project. I am really thankful to Mr. Nitin Chandel Associate Manager of the ACC Cement Ltd. , Panchkula. For his constant and able of guidance has been instrumental in large measure on the success of project. He suggests this study, and it has been a great opportunity to learn about a subject of which I had no previous knowledge.

For this, I am very grateful to him. I also extend my warmest thanks to my project guide Mr. Neeraj Sharma for providing me continuous guidance & support and for his valuable inputs during the course of my project. I wish my sincere thanks to all the Dealers who provide their valuable time from their busy schedule and took interest in my project. And finally I would like to thanks to all those people who contributed to this project from the very beginning till its successful completion. AMIT DUBEY GJIMT Table of Contents |Chapter No. Chapters |Page No. | | |Executive Summary |5 | |1. |Introduction of Cement Industry |6 | |2. |History & Manufacture Of Portland Cement |10 | |3. |Cement Industry in India |16 | |4. Introduction of ACC Cement Ltd. |24 | |5. |Cement Manufacturing Process |51 | |6. |Objective & Scope of Study |59 | |7. |Research Methodology |61 | |8. |Data Analysis & Interpretation |64 | |9. Findings & Conclusions |88 | |10. |Suggestions & Recommendations |90 | |11. |Annexure |92 | |12. |Bibliography & References |96 | EXECUTIVE SUMMARY The cement industry, world’s 2nd largest cement industry now a days are booming due to the recent boom in infrastructure and housing market and also due to great policy of Government sand world cement market.

India’s cement industry both installed capacity and actual production has grown significantly over the past 3 decades at the average rate of 8. 11% per year. There are many cement companies in India which is small and big. They use their full knowledge and power to attract more and more customers. One of the cement companies which is the market leader from many years i. e. ACC Ltd. Face a competition in the market. Acc is the leading cement company which have 14 production units in Barmana(Himachal), Bargarh(Jharkhand), chanda(Maharashtra), Damodhar(W.

Bengal), Lakheri(Rajasthan), Madukkari(T. N. ), NewWadi(Karnataka), Sindri(Jharkhand), Tikaria(U. P. ) Which produce large amount of Cement and some special cement products. In this project I have tried to show how in Panchkula Distt dealers prefer which cement and why they prefer those cement is it because of margins, profit motive, customer demand or is there any other reason for preferring a particular brand of cement. It is also found in this project that which is the opportunity and threat face by ACC Ltd. from his competitors.

What strategy ACC adopted to attract his customers because now a day’s even a person is illiterate but he will consider on that time when he will spend his money. And my analysis also tells about the strategy followed by company in different –different market its performance in these market and steps which it take to gain market share in future. Attempt has been also made by to point out the weakness of the company and suggests methods of implementation. The overall result shows that ACC Ltd. is inherently strong in the field of marketing, and R&D and it is adept at development of new products.

I hope that with the consistent and will power the company would be able to achieve its goals. Chapter – 1 [pic] OVERVIEW OF CEMENT INDUSTRY :- What is Cement Cement is a fine gray, soft, powdery-types substance. It is made from a mixture of elements that are found in natural materials such as limestone, clay, sand and shale. When cement is mixed with water, it can bind sand and gravel into a hard, solid mass called concrete. Cement can be purchased from most building supply stores in bags. Cement is usually gray. White cement can also be found but it is usually more expensive than gray cement.

Cement mixed with water, sand and gravel, forms concrete. Cement mixed with water and sand, forms cement plaster. Cement mixed with water, lime and sand, forms mortar. Cement powder is very, very fine. One kilo (2. 2 lbs) contains over 300 billion Grains, although we have not actually counted them to see if that is completely accurate! The powder is so fine it will pass through a sieve capable of holding Water. Four essential elements are needed to make cement. They are calcium, Silicon, aluminum and iron. HISTORY OF CEMENT INDUSRY: –

Ever since civilizations first started to build, we’ve sought a material that would bind stones into a solid, formed mass. The Assyrians and Babylonians used clay for this purpose, and the Egyptians advanced to the discovery of lime and gypsum mortar as a binding agent for building such structures as the Pyramids. The Greeks made further improvements and finally the Romans developed a cement that produced structures of remarkable durability. Most of the building foundations in the Roman Forum were constructed of a form of concrete, placed in some locations to a depth of 12 feet.

The great Roman baths built about 27 B. C. , the Coliseum, and the huge Basilica of Constantine are examples of early Roman architecture in which cement mortar was used. Roman Formula The secret of Roman success in making cement was traced to the mixing of slaked lime with pozzolana, a volcanic ash from Mount Vesuvius. This process produced a cement capable of hardening under water. During the Middle Ages this art was lost and it was not until the scientific spirit of inquiry revived that we rediscovered the secret of hydraulic cement — cement that will harden under water.

Repeated structural failure of the Eddystone Lighthouse off the coast of Cornwall, England, led John Smeaton, a British engineer, to conduct experiments with mortars in both fresh and salt water. In 1756, these tests led to the discovery that cement made from limestone containing a considerable proportion of clay would harden under water. Making use of this discovery, he rebuilt the Eddystone Lighthouse in 1759. It stood for 126 years before replacement was necessary. Other men experimenting in the field of cement during the period from 1756 to 1830 include L. J. Vicat and Lesage in France and Joseph Parker and James Frost in England.

Before portland cement was discovered and for some years after its discovery, large quantities of natural cement were used. Natural cement was produced by burning a naturally occurring mixture of lime and clay. Because the ingredients of natural cement were mixed by nature, its properties varied as widely as the natural resources from which it was made. Aspdin Obtains Patent In 1824, Joseph Aspdin, a bricklayer and mason in Leeds, England, took out a patent on hydraulic cement that he called Portland cement because its color resembled the stone quarried on the Isle of Portland off the British coast.

Aspdin’s method involved the careful proportioning of limestone and clay, pulverizing them, and burning the mixture into clinker, which was then ground into finished cement. Portland cement today, as in Aspdin’s day, is a predetermined and carefully proportioned chemical combination of calcium, silicon, iron, and aluminum. Natural cement gave way to Portland cement, which is a predictable, known product of consistently high quality. Today, about 98 percent of the cement produced in the United States is portland cement.

In Aspdin’s day, however, this new product caught on slowly. Aspdin established a plant in Wakefield to manufacture portland cement, some of which was used in 1828 in the construction of the Thames River Tunnel. But it was almost 20 years later when J. D. White and Sons set up a prosperous factory in Kent that the portland cement industry saw its greatest period of early expansion, not only in England, but also in Belgium and Germany. Portland cement was used to build the London sewer system in 1859-1867.

The first recorded shipment of portland cement to the United States was in 1868, when European manufacturers began shipping cement as ballast in tramp steamers at very low freight rates. The volume increased to a peak of nearly 3 million barrels in 1885. After that date, Americans began producing increasing amounts of portland cement for themselves. __________________________ Chapter – 2 History & Manufacture Of Portland Cement [pic] History & Manufacture of Portland Cement :- In 1824, Joseph Aspdin, a British stone mason, obtained a patent for a cement he produced in his kitchen.

The inventor heated a mixture of finely ground limestone and clay in his kitchen stove and ground the mixture into a powder create a hydraulic cement-one that hardens with the addition of water. Aspdin named the product portland cement because it resembled a stone quarried on the Isle of Portland off the British Coast. With this invention, Aspdin laid the foundation for today’s portland cement industry. Types of Portland Cement :- Different types of portland cement are manufactured to meet various physical and chemical requirements.

The American Society for Testing and Materials (ASTM) Specification C-150 provides for eight types of portland cement. Type I portland cement is a normal, general-purpose cement suitable for all uses. It is used in general construction projects such as buildings, bridges, floors, pavements, and other precast concrete products. Type IA portland cement is similar to Type I with the addition of air-entraining properties. Type II portland cement generates less heat at a slower rate and has a moderate resistance to sulfate attack. Type IIA portland cement is identical to Type II and produces air-entrained concrete.

Type III portland cement is a high-early-strength cement and causes concrete to set and gain strength rapidly. Type IIIA is an air-entraining, high-early-strength cement. Type IV portland cement has a low heat of hydration and develops strength at a slower rate than other cement types, making it ideal for use in dams and other massive concrete structures where there is little chance for heat to escape. Type V portland cement is used only in concrete structures that will be exposed to severe sulfate action, principally where concrete is exposed to soil and groundwater with a high sulfate content.

Portland cements can also be made to ASTM C1157 and include the following: Type GU hydraulic cement for general construction, Type HE-high-early-strength cement, Type MS-moderate sulfate resistant cement, Type HS-high sulfate resistant cement, Type MH-moderate heat of hydration cement, and Type LH-low heat of hydration cement. These cements can also be designated for low reactivity (option R) with alkali-reactive aggregates. White Portland Cement In addition to the eight types of portland cement, a number of special purpose hydraulic cements are manufactured. Among these is white portland cement.

White portland cement is identical to gray portland cement except in color. During the manufacturing process, manufacturers select raw materials that contain only negligible amounts of iron and magnesium oxides, the substances that give gray cement its color. White cement is used whenever architectural considerations specify white or colored concrete or mortar. Blended Hydraulic Cements Blended hydraulic cements are produced by intimately blending two or more types of cementitious material. Primary blending materials are portland cement, ground granulated blast-furnace slag, fly ash, natural pozzolans, and silica fume.

These cements are commonly used in the same manner as portland cements. Blended hydraulic cements conform to the requirements of ASTM C595 or C1157. ASTM C595 cements are as follows: Type IS-portland blast-furnace slag cement, Type IP and Type P-portland-pozzolan cement, Type S-slag cement, Type I (PM)-pozzolan modified portland cement, and Type I (SM)-slag modified portland cement. The blast-furnace slag content of Type IS is between 25 percent and 70 percent by mass. The pozzolan content of Types IP and P is between 15 percent and 40 percent by mass of the blended cement.

Type I (PM) contains less than 15 percent pozzolan. Type S contains at least 70 percent slag by mass. Type I (SM) contains less than 25 percent slag by mass. These blended cements may also be designated as air-entraining, moderate sulfate resistant, or with moderate or low heat of hydration. ASTM C1157 blended hydraulic cements include the following: Type GU-blended hydraulic cement for general construction, Type HE-high-early-strength cement, Type MS-moderate sulfate resistant cement, Type HS-high sulfate resistant cement, Type MH-moderate heat of hydration cement, and Type LH-low heat of hydration cement.

These cements can also be designated for low reactivity (option R) with alkali-reactive aggregates. There are no restrictions as to the composition of the C1157 cements. The manufacturer can optimize ingredients, such as pozzolans and slags, to optimize for particular concrete properties. The most common blended cements available are Types IP and IS. The United States uses a relatively small amount of blended cement compared to countries in Europe or Asia. However, this may change with consumer demands for products with specific properties, along with environmental and energy concerns.

Expansive Cements Expansive cements are hydraulic cements that expand slightly during the early hardening period after setting. They meet the requirements of ASTM C845 in which it is designated as Type E-1. Although three varieties of expansive cement are designated in the standard as K, M, and S, only K is available in the United States. Type E-1 (K) contains portland cement, anhydrous tetracalcium trialuminosulfate, calcium sulfate, and uncombined calcium oxide (lime).

Expansive cement is used to make shrinkage-compensating concrete that is used (1) to compensate for volume decrease due to drying shrinkage, (2) to induce tensile stress in reinforcement, and (3) to stabilize long-term dimensions of post-tensioned concrete structures. One of the major advantages of using expansive cement is in the control and reduction of drying-shrinkage cracks. In recent years, shrinkage-compensating concrete has been of particular interest in bridge deck construction, where crack development must be minimized. Manufacturing Process :-

Portland cement, the basic ingredient of concrete, is a closely controlled chemical combination of calcium, silicon, aluminum, iron and small amounts of other ingredients to which gypsum is added in the final grinding process to regulate the setting time of the concrete. Lime and silica make up about 85% of the mass. Common among the materials used in its manufacture are limestone, shells, and chalk or marl combined with shale, clay, slate or blast furnace slag, silica sand, and iron ore. Each step in manufacture of portland cement is checked by frequent chemical and physical tests in plant laboratories.

The first step in the portland cement manufacturing process is obtaining raw materials. Generally, raw materials consisting of combinations of limestone, shells or chalk, and shale, clay, sand, or iron ore are mined from a quarry near the plant. At the quarry, the raw materials are reduced by primary and secondary crushers. Stone is first reduced to 5-inch then to 3/4-inch. Once the raw materials arrive at the cement plant, the materials are proportioned to create a cement with a specific chemical composition. Two Manufacturing Processes:-

Two different processes, “dry” and “wet,” are used in the manufacture of portland cement. [pic] Figure 1 Crusher In the dry process, when rock is the principal raw material, the first step after quarrying in both processes is the primary crushing. Mountains of rock are fed through crushers capable of handling pieces as large as an oil drum. The first crushing reduces the rock to a maximum size of about 6 inches. The rock then goes to secondary crushers or hammer mills for reduction to about 3 inches or smaller. In this process, raw materials are ground, mixed, and fed to the kiln in a dry state.

In the wet process, the raw materials, properly proportioned, are then ground with water, thoroughly mixed and fed into the kiln in the form of a “slurry” (containing enough water to make it fluid). The grinding and blending operations are then completed with the materials in slurry form. After blending, the mixture of raw materials is fed into the upper end of a tilted rotating, cylindrical kiln. The mixture passes through the kiln at a rate controlled by the slope and rotational speed of the kiln. Burning fuel consisting of powdered coal or natural gas is forced into the lower end of the kiln.

Inside the kiln, The raw material is heated to about 2,700 degrees F in huge cylindrical steel rotary kilns lined with special firebrick. Kilns are frequently as much as 12 feet in diameter large enough to accommodate an automobile and longer in many instances than the height of a 40-story building. Kilns are mounted with the axis inclined slightly from the horizontal. The finely ground raw material or the slurry is fed into the higher end. At the lower end is a roaring blast of flame, produced by precisely controlled burning of powdered coal, oil or gas under forced draft.

As the material moves through the kiln, certain elements are driven off in the form of gases. The remaining elements unite to form a new substance with new physical and chemical characteristics. The new substance, called clinker, is formed in pieces about the size of marbles. [pic] Figure 2 Clinker Clinker is discharged red-hot from the lower end of the kiln and transferred to various types of coolers to lower the clinker to handling temperatures. Cooled clinker is combined with gypsum and ground into a fine gray powder. This fine gray powder is Portland Cement. [pic] Figure 3 Portland Cement

Chapter – 3 Cement Industry In India [pic] Cement Industry in India:- India, being the second largest cement producer in the world after China with a total capacity of 151. 2 Million Tons (MT), has got a huge cement industry. With the government of India giving boost to various infrastructure projects, housing facilities and road networks, the cement industry in India is currently growing at an enviable pace. More growth in the Indian cement industry is expected in the coming years. It is also predicted that the cement production in India would rise to 236. 16 MT in FY11.

It’s also expected to rise to 262. 61 MT in FY12. Industry Background The history of the cement industry in India dates back to the 1889 when a Kolkata-based company started manufacturing cement from Argillaceous. But the industry started getting the organized shape in the early 1900s. In 1914, India Cement Company Ltd was established in Porbandar with a capacity of 10,000 tons and production of 1000 installed. For long, companies faced severe competition in the prevailing demand. This resulted in the formation of cement manufacturers association (CMA) in 1923 whose function was to regulate cement prices.

The World War I gave the first initial thrust to the cement industry in India and the industry started growing at a fast rate in terms of production, manufacturing units, and installed capacity. Subsequently, to popularize cement, concrete association In India was established in 1927 to educate masses in the use of cement. Simultaneously, cement marketing arrangement was also made and the use of ‘Cement Marketing Company’ was established in 1930 that agreed to sell cement of ACC and Dalmia group on quota basis.

The growth of industry took rapid strides during 1926-36, though the CMA solved most of the problems, yet the consolidation takes needed the Herculean efforts. F. E. Dinshaw (a leading industrialist) took control ten out of eleven units of ACC (excepting sone valley). The object of amalgamation was not to attain a monopolistic position, but to make and deliver cement as cheap as possible. The objectives were materialized and cement was made available at then lowest possible price. The Industry acquired greater efficiency, rendering the CMA superfluous. The cement making company of India’ becomes a subsidiary of ACC in 1936. Meanwhile, many new companies were set up. The Assam Bengal Company set up it’s factory at Chatak (Bengal) and the Kalyanpur line & cement works at Banjari (Bihar) and Mysore Iron & Steel Co. Ltd. A public sector undertaking established it’s factory at Bhadravati (Mysore). Similarly, Andhra Cement Company was floated to set up a factory at Vijaywara (Andhra Pradesh). By 1947, there were 23 cement factories in India with a total production capacity of 2. 2 million tones, but owing to partition, 81. % of the rated capacity along with production 1. 79 million tones went with India while the remaining was shared by Pakistan. Cement Production and Growth:- In the cement industry there are two sectors – one consisting of large plants and the other consisting of mini cement plants. A factory with an installed capacity exceeding 2, 97,000 tons per annum (900 tons per day) is a large plant and with capacity up to and including 2,97,000 tons is a mini cement plant. At present, there are 146 large plants and about 365 mini cement plants. The present installed capacity of large plants is 217. 0 million tons and the estimated capacity of mini cement plants is 11. 8 million tons. The Indian cement Industry not only ranks second in the production of cement in the world but also produces quality cement, which meets global standards. Domestic demand plays a major role in the fast growth of cement industry in India. In fact the domestic demand of cement has surpassed the economic growth rate of India. The cement consumption is expected to rise more than 22% by 2009-10 from 2007-08. In cement consumption, the state of Maharashtra leads the table with 12. 8% consumption, followed by Uttar Pradesh. In terms of cement production, Andhra Pradesh leads the list with 14. 72% of production, while Rajasthan remains at second position. The production of cement in India grew at a rate of 9. 1% during 2006-07 against the total production of 147. 8 MT in the previous fiscal year. During April to October 2008-09, the production of cement in India was 101. 04 MT comparing to 95. 05 MT during the same period in the previous year. During October 2009, the total cement production in India was 12. 37 MT compared to a production of 11. 1 MT in the same month in the previous year. The cement companies are also increasing their productions due to the high market demand. The cement companies have seen a net profit growth rate of 85%. With this huge success, the cement industry in India has contributed almost 8% to India’s economic development. In India, the different types of cement are manufactured using dry, semi-dry, and wet processes. In the production of Clinker Cement, a lot of energy is required. It is produced by using materials such as limestone, iron oxides, aluminum, and silicon oxides.

Among the different kinds of cement produced in India, Portland Pozzolana Cement, Ordinary Portland Cement, and Portland Blast Furnace Slag Cement are the most important because they account for around 99% of the total cement production in India. Cement Dispatches:- Cement industry in India has successfully maintained almost total capacity utilization levels, which resulted in maintaining a 10% growth rate. In 2006-07, the total dispatch was 155 MT, which rose up to 170 MT in 2007-08. The month of October 2009 saw a cement dispatch of 12. 2 MT, which was almost 9% higher than the total cement dispatch of 11. 21 MT in the same month in the previous year. |  |2008-09 (Apr-Oct) (in MT) |2007-08 (Apr-Oct) in MT | |Production |101. 04 |95. 05 | |Dispatches(Excluding Export) |100. 24 |94. 33 | |Export |1. 46 |2. 6 | |Capacity Utilization (%) |85 |93 | Major Players in Indian Cement 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 | ACC Lafarge Gujarat Ambuja Cement Ultratech Cement India Cements Century Cements Jaypee Group Madras Cements

Birla Corporation Limited Mergers and Acquisitions in Cement Industry in India:- • UltraTech Cement is going to absorb its sister concern Samruddhi Cement to become biggest cement company in India. • World’s leading foreign funds like HSBC, ABN Amro, Fidelity, Emerging Market Fund and Asset Management Fund have together bought 7. 5% of India Cements (ICL) at a cost of US$ 124. 91 million. • Cimpor, a Cement company of Portugal, has bought 53. 63% stake that Grasim Industries had in Shree Digvijay Cement. • French cement company Vicat SA bought 6. 67% share of Sagar Cement at a cost of US$ 14. 35 million. • Holcim now holds 56% stake of Ambuja Cement.

Previously it held 22% of stake. The company utilized various open market transactions to increase its stakes. It invested US$ 1. 8 billion for that. Different types of cement that are produced in India are:- • Ordinary Portland cement (OPC): OPC, popularly known as grey cement, has 95 per cent clinker and 5 per cent Gypsum and other materials. It accounts for 70 per cent of the total consumption. • Portland Pozzolana Cement (PPC): PPC has 80 per cent clinker, 15 per cent pozzolana and 5 per cent gypsum and Accounts for 18 per cent of the total cement consumption. It is manufactured because it uses fly ash/burnt clay/coal waste as the main ingredient. • White Cement:

White cement is basically OPC – clinker using fuel oil (instead of coal) with iron oxide content below 0. 4 per cent to ensure whiteness. A special cooling technique is used in its production. It is used to enhance aesthetic value in tiles and flooring. White cement is much more expensive than grey cement. • Portland Blast Furnace Slag Cement (PBFSC): PBFSC consists of 45 per cent clinker, 50 per cent blast furnace slag and 5 per cent gypsum and accounts for 10 per cent of the total cement consumed. It has a heat of hydrations even lower than PPC and are generally used in the construction of dams and similar massive constructions. • Rapid Hardening Portland cement: Rapid Hardening Portland Cement is similar to OPC, except that it is ground much iner, so that on casting, the compressible strength increases rapidly. • Water Proof Cement: Water Proof Cement is similar to OPC, with a small portion of calcium stearate or non- sponifibale oil to impart waterproofing properties Recent Investments in the Indian Cement Industry:- • In a recent announcement, the second largest cement company in South India, Dalmia Cement declared that it’s going to invest more than US$ 652. 6 million in the next 2-3 years to add 10 MT capacity. • Anil Ambani-led Reliance Infrastructure is going to build up cement plants with a total capacity of yearly 20 MT in the next 5 years. For this, the company will invest US$ 2. 1 billion. India Cements is going to set up 2 thermal power plants in Andhra Pradesh and Tamil Nadu at a cost of US$ 104 billion. • Anil Ambani-led Reliance Cementation has also set up a 5 MT integrated cement plant in Maharashtra. It has invested US$ 463. 2 million for that. • Jaiprakash Associates Ltd has signed a MoU with Assam Mineral Development Corporation Limited to set up a 2 MT cement plant. The estimated project cost is US$ 221. 36 million. • Rungta Mines (RML) is also planning to invest US$ 123 million for setting up a 1 MT cement plant in Orissa. __________________________________ Chapter – 4 Introduction To [pic] [pic] Corporate Profile:- ACC (ACC Limited) is India’s foremost manufacturer of cement and concrete.

ACC’s operations are spread throughout the country with 14 modern cement factories, 20 sales offices, and a country wide distribution network of more than 9000 dealers. ACC Concrete Limited, a wholly owned subsidiary has more than 30 ready-mix plants across India. ACC’s research and development facility has a unique track record of innovative research, product development and specialized consultancy services. Since inception in 1936, the company has been a trendsetter and important benchmark for the cement industry in respect of its production, marketing and personnel management processes. ACC has made significant contributions to the nation building process by way of quality products, services and sharing its expertise.

ACC has rich experience in mining, being the largest user of limestone. As the largest cement producer in India, it is one of the biggest customers of the domestic coal industry, of Indian Railways, and a considerable user of the country’s road transport network services for inward and outward movement of materials and products. Among the first companies in India to include commitment to environmental protection as one of its corporate objectives, the company installed sophisticated pollution control equipment as far back as 1966, long before pollution control laws came into existence. Today each of its cement plants has state-of-the art pollution control equipment and devices.

ACC has made significant contributions to the nation building process by way of quality products, services and sharing expertise. Its commitment to sustainable development, its high ethical standards in business dealings and its on-going efforts in community welfare programmes have won it acclaim as a responsible corporate citizen. ACC’s brand name is synonymous with cement and enjoys a high level of equity in the Indian market. It is the only cement company that figures in the list of Consumer Super Brands of India. Heritage – A Corporate Saga:- The history of ACC is a vibrant canvas of achievement beginning with the lonely struggle of its pioneer F E Dinshaw and other Indian entrepreneurs like him who founded the Indian cement industry.

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 first success came in a move towards cooperation in the country’s young cement industry and culminated in the historic merger of ten companies to form a cement giant. These companies belonged to four prominent business groups – Tatas, Khataus, Killick Nixon and F E Dinshaw groups. ACC was formally established on August 1, 1936. Sadly, F E Dinshaw, the man recognized as the founder of ACC, died in January 1936; just months before his dream could be realized. [pic] 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 original name, The Associated Cement Companies Limited, itself indicated the company’s origins from a merger. Many years later, some stockbrokers in the country’s leading stock exchanges continued to refer to this company simply as ‘The Merger’. First Board Meeting:- [pic] 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. Holcim – A New Partnership:- [pic] 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 (later called Ambuja Cement Ltd), who then became the largest single shareholder in ACC.

A new association was forged between ACC and the Holcim group of Switzerland in 2005. In January 2005, Holcim 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 per cent 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 per cent of the Equity share capital of ACC.

Consequently, ACIL filed declarations indicating their shareholding and declaring itself as a Promoter of ACC. Holcim is the world leader in cement as well as being large suppliers of concrete, aggregates and certain construction-related services. Holcim is also a respected name in information technology and research and development. The group has its headquarters in Switzerland with worldwide operations spread across more than 70 countries. Considering the formidable global presence of Holcim and its excellent reputation, the Board of ACC welcomed this new association. Cement House- The Head Office building:- [pic] ACC’s Head Office – Cement House, 121 Maharshi Karve Road, Mumbai.

ACC’s registered office was first located at Esplanade House in South Mumbai, a graceful edifice that still stands out in its neighborhood. The head office then shifted to its own premises in Cement House shown here. The address of this stately building was then Number 1, Queen’s Road, Church gate. An all-India competition in 1938 had invited leading architects of the time to send in their designs of which this elegant design made by Ballardie Thompson & Mathews was chosen as the winning entry. Work on its construction began in 1939 and was completed during the War period. The building was occupied by the Royal Air Force and vacated only in 1946. [pic] In 2009, a unique project, has transformed Cement House into an energy efficient environment-friendly building.

Its attractive refurbished facade now houses an ultramodern office equipped with space-saving modular workstations, access control and intelligent lighting with motion and light sensors, waste management systems and water saving devices set amid greenery and a central atrium that further expands the sense of light and space. ______________________________ Vision of the Company:- ACC Limited is India’s foremost manufacturer of cement with a countrywide network of factories and marketing offices. Established in 1936, ACC has been a pioneer and trend-setter in cement and concrete technology. ACC’s brand name is synonymous with cement and enjoys a high level of equity in the Indian market.

Among the first companies in India to include commitment to environment protection as a corporate objective, ACC has won several prizes and accolades for environment friendly measures taken at its plants and mines. The company has also been felicitated for its acts of good corporate citizenship. [pic] In the 70 years of its existence, ACC has made significant contributions to the nation building process by way of quality products, services and sharing its expertise. ACC cement has very strong brand image, trusted by generation for consistent and durable cement quality, fair business and practice and long association with dealers and customers are the principal factor which provide us competitive advantages over the other brand.

BOARD OF DIRECTORS:- |  | | | | | |Mr. N. S. Sekhsaria | |Chairman | |  | | | |Mr.

Paul Hugentobler | |Deputy Chairman | |  | | | |Mr. Sumit Banerjee | |Managing Director | |  | | | |Mr. S M Palia | |Mr.

Naresh Chandra | |Mr. Markus Akermann | |Mr. M L Narula | |Mr. D K Mehrotra | |Mr. R A Shah | |Mr. Shailesh Haribhakti | |Mr. Kuldip Kaura | |Mr.

Aidan Lynam | |  | Cement Plants of ACC:- [pic]ACC’s Plant-wise Capacity Top of Form Bottom of Form Bargarh – [ Capacity (MTPA) 1. 20 ] Bargarh Cement Works Cement Nagar, PO Bardol District Bargarh Orissa -768038 Phone: 91- 6646-46191 to 94 Fax: 91-6646-46430 | TOP | CLOSE | Chaibasa – [ Capacity (MTPA) 0. 87 ] Chaibasa Cement Works P. O. Jhinkpani – 833 215 District Singhbhum Jharkhand Phone: 91-6589-35224 Fax: 91-6589-35250 | TOP | CLOSE | Chanda – [ Capacity (MTPA) 1. 00 ] Chanda Cement Works P. O. Cementnagar

Pin – 442 502 Dist Chandrapur Maharashtra Phone: 91-7172-275026 Fax: 91-7172-275165 | TOP | CLOSE | Damodhar – [ Capacity (MTPA) 0. 53 ] Damodar Cement Works P. O. Sunuri 723 121 Madhukunda District Purulia West Bengal Phone: 91-341-230671/672 Fax: 91-341-230671 | TOP | CLOSE | Gagal – [ Capacity (MTPA) 4. 40 – Gagal I and II ] Gagal Cement Works P. O. Barmana – 174 013 District Bilaspur Himachal Pradesh Phone: 91-1978-244041/31 Fax: 91-1978-244067 | TOP | CLOSE | Jamul – [ Capacity (MTPA) 1. 58 ] Jamul Cement Works P. O. Jamul Cement Works Pin- 490 024 District Durg Chhattisgarh Tel:00-91-788-383 082/84 Fax:00-91-788-382 585/643 | TOP | CLOSE |

Kymore – [ Capacity (MTPA) 2. 20 ] Kymore Cement Works P. O. Kymore Pin- 483 880 Dist. Katni Madhya Pradesh Phone: 91-7626-272301 Fax: 91-7626-272303 | TOP | CLOSE | Kudithini – [ Capacity (MTPA) 1. 10 ] Kudithini Cement Works Kurugodu Road P. O. Kudithini Dist Bellary 583 115 Karnataka Fax: +91 839 2210522 | TOP | CLOSE | Lakheri – [ Capacity (MTPA) 1. 50 ] Lakheri Cement Works P. O. Lakheri Pin- 323 603 Dist Bundi Rajasthan Phone: 91-7438-261642/54 Fax: 91- 07438-261504 | TOP | CLOSE | Madukkarai – [ Capacity (MTPA) 1. 18 ] Madukkarai Cement Works P. O. Madukkarai District Coimbatore Tamil Nadu Phone: 91-422-822282/449 Fax: 91-422-822286 | TOP | CLOSE |

Sindri – [ Capacity (MTPA) 0. 91 ] Sindri Cement Works P. O. ACC Colony Pin- 828 124 District Dhanbad Jharkhand Phone: 91-326-2251 054 Fax: 91-326-2251 236 | TOP | CLOSE | Wadi – [ Capacity (MTPA) 2. 59 ] Wadi Cement Works P. O. Wadi Pin- 585 225 District Gulbarga (C. Rly) Karnataka Phone: 91-08476-302406/302239 Fax: 91-08476-302190 | TOP | CLOSE | New Wadi Plant – [ Capacity (MTPA) 3. 20 ] Wadi Cement Works P. O. Wadi Pin- 585 225 District Gulbarga (C. Rly) Karnataka Phone: 91-8476-302 406 Fax: 91-8476-302 190 | TOP | CLOSE | Thondebhavi – [Capacity (MTPA) 1. 60 ] Thondebhavi Cement Works Madugiri Road Thondebhavi Gauribidannur Taluk Dist Chikballapur 561 213 Karnataka

Phone: 91-8155-288802 Fax: 91-8155-288682 | TOP | CLOSE | Tikaria – [ Capacity (MTPA) 2. 31 ] PLANT LOCATION:- [pic] MILESTONES:- |1936 |Incorporation of The Associated Cement Companies Limited on August 1, 1936. | | | |1936 |First Board Meeting of The Associated Cement Companies Limited held at Esplanade House, Mumbai on November | | |10, 1936. | | | |1937 |With the transfer of the 10th company to ACC, viz. Dewarkhand Cement Company, the formation of ACC is | | |complete on October 23, 1937. | | |1944 |ACC’s first community development venture near Bombay | | | |1947 |India’s first entirely indigenous cement plant established at Chaibasa in Bihar | | | |1952 |Village Welfare Scheme launched | | | |1955 |Sindri cement works used the waste product calcium carbonate sludge from fertilizer factory at Sindri. | | |1956 |Bulk Cement Depot established at Okhla, Delhi | | | |1957 |Technical training institute established at Kymore, Madhya Pradesh. | | | |1957 |Katni Refractories | | | |1961 |Blast furnace slag from TISCO used at the Chaibasa Unit to manufacture Portland Slag Cement for the first | | |time in India. | | |1961 |Manufacture of Accocid Cement, which resists the corrosive action of acids and chemicals. | | | |1961 |Oilwell Cement manufactured at ACC Shahabad Cement Works in Karnataka for cementation of oilwells upto a | | |depth of 6,000 feet. | | | |1961 |Manufacture of Hydrophobic (waterproof) cement at ACC Khalari Cement Works in Bihar. | | | |1962 |Manufacture of Accoproof, a waterproofing additive. | | |1965 |ACC’s Central Research Station (CRS) established at Thane | | | |1965 |Manufacture of Portland Pozzolana Cement. | | | |1965 |Manufacture of Calundum, a High Alumina Binder; Firecrete, Low Density Alumina Castables and High Alumina | | |Refractory Cement. | | | |1968 |Advent of computers in ACC for data processing and designing management information and control systems. | | |1968 |ACC supplied and commissioned one-million-tonne iron ore pelletising plant ordered by TISCO | | | |1971 |Manufacture of Whytheat Castables A, K, C and Cal-Al-75 | | | |1973 |Take-over of The Cement Marketing Company of India (CMI) | | | |1977 |ACC receives ASSOCHAM first national award for the year 1976 instituted for outstanding performance in | | |promoting rural and agricultural development activities. | | | |1978 |Introduction of the energy efficient precalcinator technology for the first time in India. Full scale | | |commercial production based on MFC technology at Wadi in 1979. | | |1979 |ACC wins international contract for operation and management of a new one million tonne cement plant at | | |Yanbu-Ras Biridi in Saudi Arabia. | | | |1982 |Commissioning of the first 1 MTPA plant in the country at Wadi, Karnataka. | | | |1984 |ACC achieves a breakthrough in import substitution by developing and supplying a special G type of oil well | | |cement to ONGC. | | |1987 |ACC develops a new binder for use at sub-zero temperatures, which is successfully used in the Indian | | |expedition to Antarctica. | | | |1992 |Incorporation of Bulk Cement Corporation of India, a joint venture with the Government of India. | | | |1993 |ACC starts the commercial manufacture of Ready Mixed Concrete at Mumbai. | | | |1995 |ACC selected as Most Respected Company in India by Business India. | | | | | | | | |1998 |Commissioning of the 0. 6 MTPA cement grinding unit at Tikaria, Uttar Pradesh. | | | |1999 |Commissioning of captive power plants at the Jamul and Kymore plants in Madhya Pradesh. | | | |1999 |Tata group sells 7. % of its stake in ACC to Ambuja Cement Holdings Ltd, a subsidiary of Gujarat Ambuja | | |Cements Ltd. (GACL) | | | |2000 |Tata Group sells their remaining stake in ACC to the GACL group, who with 14. 45% now emerge as the single | | |largest shareholder of ACC. | | | |2001 |Commissioning of the new plant of 2. 6 MTPA capacity at Wadi, Karnataka plant, the largest in the country, | | |and among the largest sized kilns in the world. | | |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 | | | |2007 |ACC commissions Wind energy farm in Tamilnadu. | | | |2008 |Ready mixed concrete business hived off to a new subsidiary called ACC Concrete Limited. | | | |2008 |ACC Cement Technology Institute formally inaugurated at Jamul on July 7. | | | |2008 |First Sustainable Development Report released on June 5. | | |2008 |ACC wins CNBC-TV18 India Business Leader Award in the category India Corporate Citizen of the year 2008 | | | |2008 |Project Orchid launched to transform our Corporate Office, Cement House into a green building. | | | |2009 |ACC received the Jamanalal Bajaj “Uchit Vyavahar Puraskar” of Council for Fair Business Practices | | | |2009 |ACC is allotted coal blocks in Madhya Pradesh and West Bengal. | | |2009 |ACC’s new Grinding plant of capacity 1. 60 million tonnes inaugurated at Thondebhavi in Karnataka. | | | |2010 |Kudithini Cement Grinding Plant inaugurated in Karnataka on January 4, 2010 with a capacity of 1. 1 MTPA of | | |Portland Slag Cement. | |2010 |ACC acquires 100 percent of the financial equity of Encore Cements & Additives Private Limited which is a | | |slag grinding plant in Vishakhapatnam in coastal Andhra Pradesh. This company became a wholly-owned | | |subsidiary of ACC in January 2010. | AWARDS & ACCOLADES:-

ACC was the first recipient of ASSOCHAM’s first ever National Award for outstanding performance in promoting rural and agricultural development activities in 1976. Decades later, PHD Chamber of Commerce and Industry selected ACC as winner of its Good Corporate Citizen Award for the year 2002. Over the years, there have been many awards and felicitations for achievements in Rural and community development, Safety, Health, Tree plantation, afforestation, Clean mining, Environment awareness and protection. • Indira Priyadarshini Vrikshamitra Award — by The Ministry of Environment and Forests for “extraordinary work” carried out in the area of afforestation. • FICCI Award — for innovative measures for control of pollution, waste management & conservation of mineral resources in mines and plant. Subh Karan Sarawagi Environment Award – by The Federation of Indian Mineral Industries for environment protection measures. • Drona Trophy – By Indian Bureau Of Mines for extra ordinary efforts in protection of Environment and mineral conservation in the large mechanized mines sector. • Indira Gandhi Memorial National Award – for excellent performance in prevention of pollution and ecological development • Excellence in Management of Health, Safety and Environment : Certificate of Merit by Indian Chemical Manufacturers Association • Good Corporate Citizen Award – by PHD Chamber of Commerce and Industry • FIMI National Award – for valuable contribution in Mining activities from the Federation of Indian Mineral Industry under the Ministry of Coal. Rajya Sthariya Paryavaran Puraskar – for outstanding work in Environmental Protection and Environment Performance by the Madhya Pradesh Pollution. Control Board. • National Award for Fly Ash Utilisation – by Ministry of Power, Ministry of Environment & Forests and Dept of Science & Technology, Govt of India – for manufacture of Portland Pozzolana Cement. PRODUCTS :- ACC’s brand name is synonymous with cement and enjoys a high level of equity in the Indian market. Our range of cements and blended cements is marketed through a network of 19 Sales Units, 54 Area Offices, and 194 warehouses. This is backed by a countrywide network of over 9,000 dealer who, in turn, are assisted by their sub-dealers.

ACC’s marketing, sales and distribution processes are industry standards. Although we take immense pride in having supplied some of India’s most admired projects, ACC is essentially a people’s brand of cement with more than 80 per cent of sales made through an extensive dealer network that covers every state in India. Its customer base represents the masses of India – individual homebuilders in small towns, rural and semi-urban India. ACC cement enjoys an image of assuring consistency and of high quality backed by in-house research and expertise. Complementing this is a unique customer services cell comprising qualified civil engineers, who assist and advise 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. ACC manufactures the various kinds of Portland Cement for general construction and special applications. In addition to this, ACC offers two value added products namely, Bulk Cement and Ready Mix Concrete. PRODUCTS : : CEMENT 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 Pozzolana Cement This is a special blended cement, produced by inter-grinding higher strength Ordinary Portland Cement clinker with high quality processed fly ash – based on norms set by the company’s R&D division. This unique, value-added product has hydraulic binding properties not found in ordinary cements. It is available in specially designed 50-kg bags. 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 wh

Cite this page

A Study on Factors Influencing Dealer Preferences about a Particular Brand of Cement at ACC Limited Panchkula. (2018, Aug 05). Retrieved from


Remember! This essay was written by a student

You can get a custom paper by one of our expert writers

Order custom paper Without paying upfront