ACC Ltd.

SL NO. CONTENTS PAGE NO.

1 ABOUT THE COMPANY 2

2 OWNERSHIP PATTERN 3

3 PRODUCTS 4

4 AREA OF OPERATION 5

5 COMPETITORS 5-6

6 ACHIEVEMENTS AND AWARDS 6

7 FUTURE GROWTH AND PROSPECTUS 6

8 FINANCIAL STATEMENT 7-11

9 SWOT ANALYSIS 12-13

10 CONCLUSION 14

Dept. of MBA, CIT, Gubbi. Page 1

ACC Ltd.

ABOUT THE COMPANY:-

ACC Limited is India's foremost manufacturer of cement and ready mixed concrete 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

HISTORY OF COMPANY

In 1936, eleven cement companies belonging to tatas, Khataus Killick Nixon and F E

Dinshaw groups merged to form single entity. ACC Ltd is India's foremost manufacturer of
cement and concrete. The company is engaged in the manufacture and selling of cement and
ready-mixed concrete.

In the year 1944 they established India's first entirely indigenous cement plant at Chiapas in
Bihar. In the year 1956 they established bulk cement depot at Okhla Delhi.

 In January 2014 ACC launched its first Waste Heat Recovery System (WHRS) at Gagal
marking an important step in energy conservation.

The company is only Cement Company to get Super brand status in India.

VISION and MISSION

VISION

To be one of the most respected companies in India recognized for challenging

conventions and delivering on our promises.

MISSION

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.

Dept. of MBA, CIT, Gubbi. Page 2

ACC Ltd.

OWNERSHIP PATTERN

Holder's Name No of Shares % Share Holding

Promoters 93984120 50.05%

Foreign Institutions 14624945 7.79%

Central Govt. 287815 0.15%

Others 11171682 5.95%

Banks Mutual Funds 22803650 12.14%

General Public 19803437 10.55%

Financial Institutions 16700614 8.89%

Foreign Promoter 8411000 4.48%

% Share Holding
4%
Promoters
9%
Foreign Institutions

Central Govt
11%
Others
50% N banks Mutual Funds

12% General Public

Financial Institutions
6% Foreign Promoter
8%
0%

PRODUCTS

Dept. of MBA, CIT, Gubbi. Page 3

ACC Ltd.

 Portland cement 43 Grade.

OPC 43 grade cement is a cheaper choice. You can buy OPC 43 online but will also choose
to comprise over the total compressive strength of the structure. OPC 43 grade cement also has
fine grinding of clinkers. This causes it to have a slower gain in strength and also the
comparative lack of magnesium by a difference of -0.01% also affects the heat of hydration
performance.

 Portland Cement 53 Grade.

OPC 53 grade cement is the most preferred building and construction material for projects
that require high tensile strength. You can choose to buy OPC 53 grade cement online as it has
the grinding of clinkers to the maximum extent and this cement grade is finer than grade 43.
The fineness in cement generates early gain in strength, but along with high heat of hydration.

 ACC Gold Cement.

This Gold Range of Cement assures Superior Quality for specialized applications and
environments besides also being immensely suited for general construction. It is a specially
formulated cement with unique binding properties designed to provide high strength.

 Bulk Cement.

In ACC LIMITED seven-decade history of cement in India has been the introduction of Bulk
Cement, an alternative to bagged cement, which is of particular advantage to large consumers of
cement. Internationally, the trend is to move cement more and more in loose form rather than
bagged.

 ACC Suraksha Cement.

This variety of cement requires less water, provides dense and impermeable concrete
which increases the long term strength of the structure. ACC Suraksha can be handled without
segregation. It provides high strength concrete resulting in strong, sturdy and eco-friendly
constructions

AREA OF OPERATION

Dept. of MBA, CIT, Gubbi. Page 4

ACC Ltd.

ACC Limited is India's foremost manufacturer of cement and ready mixed concrete with
17 modern cement factories, more than 50 ready mixed concrete plants, a vast distribution
network of over 9,000 dealers and a countrywide spread of sales offices. 

Headquartered in Mumbai, ACC’s operations span the whole country with cement
factories, ready mix concrete plants, regional offices, sales units and area offices.

COMPETITORS INFORMATION

 UltraTech Cement

UltraTech Cement is India’s largest and amongst the World’s top cement manufacturers.
The company has a presence in five countries. The total operation includes 11 integrated
plants, one white cement plant, 15 grinding units, two rail, and three coastal terminals, and
101 ready mix concrete (RMC) plants. Additionally, the company is the largest clinker
exporter in India.

 Shree Cements

Shree Cements is a trusted brand in India, mainly in the northern and eastern parts of the
country. Currently, the company has manufacturing operations over North and Eastern India
across six states. Additionally, the company is popular as one of the most efficient and
environment-friendly companies in the global cement industry.

 Ambuja cement limited

Ambuja Cements sits on a solid foundation of cost control. The company, which claims
energy efficiency as its competitive edge in a power-hungry industry, generates its own
electricity from bio-waste (rice husks, wood chips, sugarcane waste) and purchases
inexpensive coal and fuel oil from overseas. Ambuja Cements even sells its excess power
capacity to the local government.

 Ramco Cements

Ramco Cements was founded as Madras Cement. Company’ flagship product Ramco Grade
is the most trusted cement brand in South India. The company has 5 cement plants, 4
Grinding Plants, 1 Packing Plants, 1 Ready Mix Concrete Plant, and 1Dry Mortar Plant
spread across the country.

 J. K. Cement

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ACC Ltd.

J. K. Cement company is extensively in the manufacturing and distribution of cement as well as

cement-based products. The company was founded by Lala Kamlapat Singhania. The Company
is the second-largest manufacturer of white cement and wall putty in India. Actually, the
company has an annual production capacity of 600,000 tons and 700,000 tons respectively in
India.

ACHIEVEMENTS

ACC was awarded with a 'Certificate of Recognition' for Corporate Governance by the
Institute of Company. IN 2019 ACC won an award for CSR Excellence in disease prevention
and treatment at the Rotary Karnataka. ACC also received the Golden Peacock Environmental
Management award Reader's Digest Trusted Brand Gold Award in Cement category IN 2015.

Future Growth And Prospects

 Multi-year low valuations and better-than-expected financial performance in the June

2020 .

 For 2018-2019, the cement industry grew at more than 12% according to

industry estimates.

 ACC gains 3% as board approves Rs 30 billion expansion plan. The above projects
are estimated to cost approximately Rs 30 billion, which is proposed to be funded
through internal accruals,

 ACC Limited has announced that it will open a 2.5 Mt/yr integrated cement plant with
‘state-of-the-art pollution control technology

FINANCIAL STATMENTS

Dept. of MBA, CIT, Gubbi. Page 6

ACC Ltd.

Current Ratio

Current Ratio = Current Assets / Current Liabilities

Current
Year
ratio

2018 1.52

2019 1.69

Difference = 0.17

CURRENT RATIO

1.7
1.65
1.6 CURRENT RATIO
1.55
1.5
1.45
1.4
2018 2019

The current ratio is a liquidity ratio that measures weather a firm has enough reserves to
meet its short term obligations when compare to 2018 the company current ratio is increased by
0.17 because they maintain the short obligations of the company

QUICK RATIO

Quick ratio= Liquid Asset/ Current Liabilities

Dept. of MBA, CIT, Gubbi. Page 7

ACC Ltd.

Year Quick ratio

2018 1.21

2019 1.48

Difference= 0.27

QUICK RATIO
1.6
1.4
1.2
1 QUICK RATIO
0.8
0.6
0.4
0.2
0
2018 2019

The quick ratio is also known as acid test ratio is type of liquidity ratio which measures the
ability of company to use it near cash or quick asset extinguish retire its current liabilities
immediately when compare to 2018 the company quick ratio is increased by 0.27 because they
maintain the current liability and current asset in proper manner because of proper work
decision made by management.

ASSET TURNOVER RATIO

ATR= COGS / Total Asset

Dept. of MBA, CIT, Gubbi. Page 8

ACC Ltd.

Year ATR

2018 1.48

2019 1.42

Difference= 0.06

Asset Turnover Ratio

1.48
1.47
1.46
1.45 Asset Turnover Ratio
1.44
1.43
1.42
1.41
1.4
1.39
2018 2019

Asset turnover ratio measures the value of company sales or revenues generated related to
the value of its asset when compare to 2018 there is a decrease in the value of assets by
[Link] the company is not using its assets as efficiently. This might be due to excess
production capacity, poor collection method, or poor inventory management

INVENTRY TURNOVER RATIO

ITR= Cost of Goods Sold / Average Inventory

Dept. of MBA, CIT, Gubbi. Page 9

ACC Ltd.

Year ITR

2018 8.82

2019 13.72

Difference= 4.9

ITR

14
12
10
ITR
8
6
4
2
0
2018 2019

The term investment turnover ratio describes a calculation analysts can use to determine how
efficiently the company’s debt and equity produces revenue. When compare to 2018 the
company investment ratio is increased by 4.9 because the company using its resources more
effectively for the better usage of resources will increase the value of shareholders.

FIXED ASSET TURNOVER RATIO

FATR= Net sales / Average fixed asset

Year FATR

Dept. of MBA, CIT, Gubbi. Page 10

ACC Ltd.

2018 1.68

2019 1.67

Difference= 0.01

FATR

1.68
1.68
1.68
1.67 FATR

1.67
1.67
1.67
1.67
1.66
2018 2019

The fixed asset turnover ratio is an efficiency ratio that measures a company’s return on
their investment on their property, plant, equipment by comparing net sales with fixed assets.
There is a declaiming in ratio by 0.01 it indicates that a company as over invested in fixed asset.

SWOT ANALYSIS

Strength

 Solid brand equity:

Dept. of MBA, CIT, Gubbi. Page 11

ACC Ltd.

winning the super brand award multiple times is itself an achievement for ACC. ACC
cement is always touted as one of the top 3 brands in India.

 Awards:

ACC cements has been at the forefront of winning awards. It is already on ISO 9001 company
recognized globally for its manufacturing practices.

 Far and wide distribution network:

ACC today boasts of dealers and distribution close to 9000 across India.

 Maximum manufacturing plants:

ACC has the highest numbers of manufacturing plants which are close to 17 whereas
UltraTech and others have lesser.

WEAKNESS

 Advertising is poor:

Ambuja with its BTL ads is taking away the market rapidly. Overall the manufacturing
strength of ACC cement is strong, the advertising and push strategy is weak.

 Losing brand equity:

Although ACC cements was the first brand to win the super brand in 2006 and 2007,
UltraTech won the same award in 2011. This shows the ACC is losing the brand equity.

 Presence in India only:

ACC is restricted with its presence in India and hence it faces competition from other cement
brands which is exporting cement in huge quality.

OPPORTUNITIES

 India growing in infrastructure:

One of the major advantages of ACC cements is that it is a leading brand in the cement
industry which is itself growing due to increasing demand of Infracture in India
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ACC Ltd.

 Brand activity:

By investing in brand activities for 1 or 2 years, ACC can easily gain back the market shares
as well as the brand equity and become an leading brand in India.

 Exports:

Its weakness can become its strength. ACC is already known for its quality in
manufacturing. It can use the same strength to start its exports across the world

 Government tie-ups:

The more government tie-ups it has, the more the company will grow. Tie-ups like
constructing of cement roads, government buildings etc…

THREATS

 Market is becoming crowded:

ACC Company should look after various cement brands, where ACC had to worry about
couple of players in the market because the market has suddenly opened to multiple companies.

 Price competition:

Once a company enters price competition, its bottom line drops. And the same is the threat to
ACC. Due to the number of brands available, ACC has to enter price competition which is
affecting bottom line

 Market share:

Once dealers start selling products which are lower in cost but better in quality, then the
market share will slowly start to tilt.

CONCLUSION

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ACC Ltd.

 The company should focus more on the sales force support which they provide to their
dealers. In the era of post economic reforms, investment in shares has become more
attractive.

 ACC can provide expert advice on getting the value from cement.

 Recommendations by dealers are major influencing factor, and the retail investors have to
come forward to invest their stake in the shares of the company

 ACC limited has been found to be the best one for making investment as revealed by
various parameters used in the study .

Dept. of MBA, CIT, Gubbi. Page 14