CONTENTS

INTRODUCTION TO PROJECT CEMENT PRODUCT HISTORY CEMENT INDUSTRY 1. THE ASSOCIATED CEMENT COMPANIES LTD 2. FIRM PROFILE (SRI SHABAREESH AGENCIES) SURVEY FINDINGS SUGGESTIONS AND CONCLUSION Annexure o Questionnaire o Bibliography

CHAPTER 1 INTRODUCTION TO PROJECT

INTRODUCTION AIMS AND OBJECTIVE SCOPE OF THE STUDY METHODOLOGY LIMITATIONS

CHAPTER 1 INTRODUCTION Indian Marketing Environment is largely described as sellers market. We have chronic shortages and scarcities Demand is invariably Purchase power do masses is limited particularly in convenience goods. greater than supply.

more than 30% of our population have income below poverty line bulk of our population resides in villages and marketers have yet to capitalize rural marketing opportunities. they have weak bargaining power. oriented marketing approach. The consumers are ignorant, illiterate, unorganized and hence Most of our business enterprises are still having selling concept, which is product Bigger business houses having national markets are adopting integrated corporate planning and market planning as well as strategic market programmes. Marketing Research and information as well as strategic marketing planning have very limited scope at present. A change is taking place in the marketing environment at a reasonable speed and many consumer oriented marketing companies are beginning to realize the pressure of competition and buyers market. But the transaction to marketing orientation is a long and difficult process. Marketing research has a bright future in the feature of matured economy.

Marketers are caked upon to anticipate changes in the marketing environment involving opportunities risks and uncertainties. and intensity They are regained to forecast the direction of there future change plant to meet

anticipated changes in the environment and secure favorable relationship with the changing environment. To do there Accurate intelligent planning marketers need information.

sales forecasting involves collection and processing of information. We can have more accurate and reliable sales forecast, marketing plans and programmes through organized information system. We should have profitable

marketing activities, minimum risks and uncertainties. This project report offers detailed regarding marketing of Cement in general and marketing performance and marketing share of ASSOCIATED CEMENT COMPANIES LTD., [ACC]. It also deals with a case study of SRI SHABAREESH AGENCIES, SHIMOGA, reference have been made to marketing of other Cements also so as to bring out comparative cements. In the modern world Cement has gained so much recognition that no building is built without Cement. It is deemed to be the best and only construction material at present. Even though cement is used by almost every man he does not know much about it. This project report attempts to bring about details regarding history, manufacturing process, types of cement available, problems in marketing if cement and other details regarding cement. Efforts have also been made to get the

opinion of dealers regarding marketing and other aspects of Cement etc., and consumers opinion regarding ACC Cement. Attempts have also been made to assess the marketing performance of SRI SHABAREESH AGENCIES and certain suggestions have also been given for improvement of marketing strategy by adopting suitable marketing programmes. AIMS AND OBJECTIVE 1. To know about the process of manufacturing cement. 2. To know about the raw materials used in the process. 3. To analyze the sales performance of Acc cement in General. 4. To analyze the sales performance of Cement by SRI SHABAREESH AGENCIES. 5. To assess marketing strategy adopted by SRI

SHABAREESH AGENCIES. 6. To analyze the general problems in marketing of cements and specific problems confronted by SRI SHABAREESH AGENCIES. 7. To know consumer preference towards various brands of cement especially towards ACC Cement. 8. To give specific suggestions for improvement pf

marketing strategy of SRI SHABAREESH AGENCIES.

SCOPE OF THE STUDY The scope of this report is restricted to the study of consumer preference and Dealers opinion regarding marketing of ACC Cement in Kadur town. This report includes the efforts that have been taken up by the ASSOCIATED CEMENT COMPANIES LIMITED to improve the quality and sales and also the efforts that have been taken up by SRI SHABAREESH AGENCIES to increase the sales of ACC cement in Kadur town.

METHODOLOGY The Method adopted to conduct this study may be classified into 2 types. The information has been gathered through two sources. 1. Primary data. 2. Secondary data. The primary data has been collected through personal interview and by observation. It has been collected directly from the Firm Proprietors information are collected by observational methods. Sources of Secondary data like News papers, Magazines, Books, Internet helped a lot in preparing this case study.

LIMITATIONS Since construction. everywhere. Cement is used only in the process of

It is rather difficult to get respondent It is also difficult to known the opinion of

respondences each and every one will have qualitative knowledge about Cement. There are channel of respondent issues being this chance whether it may be a wrong or right this; may create a bias in response. possible. The scope of study reconfirmed to shimoga only. The reference has been drawn with the help of opinion of both consumers and dealers of Shimoga town. There may be channel of inference becoming unsuitable in, such marketing environments which have completely a different set up of marketing friends. As Cement is a product confirmed to person who are involved in the process of construction. It is very difficult to get information for every one. Even though it is difficult all attempts as have been made and necessary precisions have been taken to award bias and get answer to make the report a relative one. However it has been avoided as for as

CHAPTER 2 CEMENT PRODUCT HISTORY INTRODUCTION

PORTLAND CEMENT USE OF PORTLAND CEMENT

PRODUCT HISTORY PRODUCTION OF CEMENT

MODERN PROCESS OF MANUFACTURING CEMENT THE MODERN PROCESS TYPES OF CEMENT AVAILABLE STORAGE OF CEMENT

CHAPTER 2 CEMENT PRODUCT HISTORY INTRODUCTION [Origin of the word Cement] The word CEMENT is from the Swan to cut and originally had reference to store cuttings used in lime mortar. Then it is logical that in to middle age of the substances known as MORTAR which is now used to the word was commonly called as CEMENT. In correct modern age, cement generally mean the substances which binds the stones or bricks with which are built and term may be used with respect to any materials serving such a purpose. 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 countrywide network of Sales Units, Area Offices, and warehouses. This is backed by a vast distribution network of over 9,000 dealer who, in turn, are assisted by their subdealers. ACCs marketing, sales and distribution processes are industry standards. Although we take immense pride in

having supplied some of Indias most admired projects, ACC is essentially a peoples 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.

PORTLAND CEMENT Port land Cement is a finely ground powder, usually grey which when mixed with water hardens and develops strength primarily because of a large content of hydrous calcium Silicates. There and other constitutes react chemically with the water by hydration and hydrolysis. The most common raw materials are lime stone and clay or shell. It is produced by burning at high temperature materials containing lime, alumina, iron and silica in predetermined proportion to given the desired and properties.

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Normally, Gypsum or its derivatives are added during grinding stage for set control. Portland cements with special properties are produced by varying the oxide composition and also by adding small amounts of chemicals agents at the clinker grinding stage or later. When mixed with water alone to form hard mass. Early investigators advanced divergent theories as to why Portland cement forms a rigid strong coherent mass when it reacts with water. It has since been established that a colloidal of high internal surface area is formed. Whatever the extent of direct chemical continuity, it is apparent that the large internal surface forces may also be involved. USE OF PORTLAND CEMENT A mixture of cement and water is called neat cement paste, such. whether fresh or hardens. In some grunting operations, including oil well cementing, the paste is used as Generally however, it constitute two hardening ingredient in mortar or concrete. This use of sand and stone filler called aggregate is an economy and also reduces shrinkage. Another use Portland cement is in soil cement Portland cement is also mixtures used as pavement base.

mixed with asbestos fiber and water and processed to make special products. Like organize plastics it derives much of its utility from the fact that it is readily cost or molded into shape. Concrete is used, extensively for shielding against It is used around reactor and partial nuclear radiation.

accelerators and for construction of radiation shelters.

11

Sometimes special, heavy aggregates are used to reduce required thickness.

PRODUCT HISTORY The origin of cement dates back to the earlier centuries. The first people to use the materials for binding were the Egyptians. The Egyptians used impure Gypsum plaster as mortar in constructing the famous pyramids once of the seven wonders of the world. Greeks used slacked lime for the purposes of construction. The Roman learned the use or the utility of the binding materials from Egyptians and Greeks. The Romans and Greek made a pozzolanic mortar by mixing finely ground volcanic material with lime. of a place in Italy. The Romans used powdered pottery fragments as possalana or binding materials. The pozzolanic cements as they were called were made by mixing the volcanic stuff and powdered pottery fragments with lime and water. This mixture was found to have the resistance needed for exposing to water and air for a long times. At that time there were the only mixture or cement as thus are called were suitable for any type of exposure. Such cements are used to constructing the famous structures as the Roman Pantheon and coliseum. The word Pozzoland is derived from the word pozzuoli, name

12

The middle ages the quality of mortar declined. It was commonly a sand-mortar lime mixture. The decline in the quality of the mortar was the insufficient burning of lime. It was in the 17th century that the actual compositions by cement began to get its shape. house off the Cornwall port, in England. At that time lime pozzalana was the only recognized material for under water construction. But he was not satisfied with the mixture semitone. Experimented with lime and he found that clay constituted a considerable part of lime. He is thus credited as the first person to find the constituents of the hydraulic lime. In 1796 James parker of England, patented a hard burned impure lime. He used it as the binding material. It did not slake (absorb water and crumble) when it was exposed to water or air. He called it as the Roman Cement. But this type if cements required as they were in the form of crystals. This cement was the basis on which the National Cement as it was called was produced in the 1820s. But the only difference was the Natural Cement was the mixture of hard burned impure lime and cement rock. A type of rock which was available in U.S.A. thus the foundation for the cement Industry was laid. In 1824, a process of making cement was patented by Joseph Apsdin in England. He named the cement as Portland In 1756 when John Smeaton was commissioned to rebuild the Eddy stone light

13

cement.

This was because the cement products had the Modern cement in logical and

resemblance of the Portland in England Apsdin, so confirmed the name to the cement. scientific development from natural cement.

PRODUCTION OF CEMENT Methods of production of cement have changed greatly over the years. It has changed so much that there old process has no connection with the modern process. Earlier, the fire which was used to burn the raw materials was done in a fixed place i.e., it was stationer; it could not be moved or rotated. After a few years intermittently operated kilns were used. The production was done on a small scale. The kilns which were used for burning underwent great changes. The most notable was the introduction of the rotary kilns. for the purpose was not a success. respectively. This was the process that achieved the 1st success in the United States. Thi9s eventually led to complete adoption of rotary kiln for production of cement. But in Europe the continuously operating staff kiln is even used today. In 1877 T.R. Crompton obtained a British patent as a rotary kiln Fredrick Ransance obtained British and U>S> patents in 1885 and 1886

14

MODERN PROCESS OF MANUFACTURING CEMENT PREVIOUS PROCESS: Cement is a finely ground powder, usually grey which when mixed with water hardens and develop-s strength primarily because of large content of a hydrous calcium silicates. The most common raw material is lime stone and clay or share. The raw mix in finely ground and heated to about 1500 degree celcious to decompose the calcium oxide poultry fused clinker of marble size is produce the clinker is then ground with the small amount of calcium sulphate (gypsum). Then the content was obtained. This was the type of manufacturing process which was in use in the earlier days. THE MODERN PROCESS The modern manufacturing process of cement is of two type. 1. Dry process. 2. Wet process.

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FLOW

DIAGRAM

SHOWING

MIXING

OF

RAW

MATERIALS DRY PROCESS

CALCAREOUS MATERIALS (LIME STONE ETC)

AGRELLACEOUS MATERIALS (CLAY ETC)

CRUSHING

CRUSHING

FUSE GRINDING IN BALL MILLS AND TUBE MILLS

FUSE GRINDING IN VALL MILLS AND TUBE MILLS

STORAGE

STORAGE

MIXING OF RAW MATERIALS IN CORRCT PROPORTION

STORAGE TANK

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WET PROCESS
CALCAREOUS MATERIALS (LIME STONE ETC) AGRILLACEOUS MATERIALS (CLAY ETC)

CRUSHING

WASHING

STORAGE IN SIDE SILOS

STORAGE IN BASINS

CHANNELS

GRINDING MILL

FERMENTATION OF SLURRY

CORRCTING BASINS

STORAGE TANK

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The mixing of raw materials involves four stages. are a. Size reduction. b. Blending. c. Liberating Carbon-di-oxide. d. Pulverizations.

They

The procedures are the phases are almost identical in both the process. The phases are step that are involved in the

manufacturing process is a. Mixing of raw materials b. Burning. c. Grinding.

TYPES OF CEMENT AVAILABLE Till a few years back in India only ordinary Portland cement was produced. But they were not ideal for extreme weather in certain part of the country. Also this cement did give good outlook if not pointed therefore the manufacturers come to know about these factors and have manufacture different types.

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The list of cement is given here. 1. White cement 2. Color cement. 3. Water proof. 4. Acid Proof 5. Blast furnace. 6. High Alumina Cement 7. Ordinary Portland Cement 8. Expanding Cement 9. Pozzolana Cement. 10. Quick Setting Cement 11. Rapid Hardening Cement.

STORAGE OF CEMENT Cement should be stored very care fully. huge closed containers that is silos. That is in

It is stored in closed It

placed to avoid contact with atmosphere. This so because if it gets mixed with the moisture in the atmosphere. becomes useless. It can also be stored in storage shed. Cement was previously packed in gunny bags. But by the time it reached actual consumer half it would have been split over. This was compounded sealing problem. The bags were sealed with threads. But was not so strong. But after the polythene or Plastic bags came into scene the loss has been curtained. It has become easy for transportation. The

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bags are sealed with the help of machine.

Hence major

problem of storing and transporting has been averted.

HOW IS CEMENT USED? A mixture of cement and water is called heat cement paste, whether fresh or hardened. In some granting operations, so including oil well cementing. The paste used as such generally; however, it constitutes the hardening ingredient in mortar or concrete. concrete. This Cement paste ordinarily amounts from 20% to 35% of the volume of the

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CHAPTER-3 CEMENT INDUSTRY

CEMENTING CONSTRUCTION SECTOR COAL REQUIREMENTS TRANSPORTATION

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CHAPTER-3 CEMENT INDUSTRY

CEMENTING CONSTRUCTION SECTOR: Cement development. Indias progress. Cement Industry has experience steady is the basis material required for all

constructional works.

It is vital ingredient to the countries

Since its inception in 1914.

The output of the

major and mini cement plants has increased from 57.6 million tons in 2001-02. The out put of cement may be high at 68 million tons in 2002-03. India is the fifth largest cement production after China, Russia, Japan and U.S.A. With the turnover of Rupees 120 billion comprising 52 companies with 101 plants. The cement industry in India is poised to scale new heights thanks to the liberalization policies of the Government adoption of state of the art Technology and the massive investment of rupees 100 billion. By the year 2010

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A.D. capacity of this Industry to reach the impressive level of 120 million tons. India is presently producing several varieties of cement. These includes to ordinary Portland Cement(OPC), Portland Pozzalana cement (PPC), Portland Blast furnace slag cement (PBFS), Rapid setting cement , oil well cement and white cement. India is also producing high strength cement like 43 grades and 53 grades. Low heat cement is produce for the massive construction of Dames, Barrages, Deep foundation for high rise building etc. The domestic demand is assumed to grow at 8% per annum. The cement capacity which was 62.05 million tons in 1992-93 rise to 84.03 million ton in 2000-01. Around 7.85 million tons large cement capacity was proposed to add during 2004-05 of which 5.50 million ton was to be operational in 2005-06 and the remaining 2.35 million ton would be operational; in 2006-07. Cement consumption may reach a level of 92.65 million tons by 2010.

Mini cement plants were setup at the governments insistence during the early 1980s due to the storage of cement. India has been one of the pioneering countries as for as mini cement plant sprouted up around restricted and scattered limestone deposit areas. Because of low overheads and excise duty, the cement manufactured by mini plant is much cheaper. Mini plant enjoy concession in excise duty to the extent of rupees 7.50 per bag. However,

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these plants depend upon traditional technology leading to poor quality of cement. Cement Machinery segment is witnessing a boom. Segment is capable of manufacturing and supplying complete cement plants based on the dry process and precalcinations technology for capacities upto 5000 tons per day. There are 18 units in the organized sector for the manufacture of complete cement plant with total installed capacity worth rupees 2000 million per annum. The total production rise from rupees 1900 million in 2000-01 to rupees 2250 million in 2001-02. Inspite of some problem, the cement industry is at present well pleading. It looks 14 years to double the capacity to 29 million tons in 1998. Since then upto the end of March 2000, it had gone upto 96.5 million tons and increase of 140 %. Like wise in 1999-2000 consumption has gone up by 6% after 1% fall in previous year of course, government consumption has down from 50% in the early 1980s to about 20%. The Cement has great future however certain measures as needed to setup the space of growth of cement industry. There is need for accelerating the building of concrete road and multi purpose hydro project. priority area. The storage of dwelling units is currently at 35 million. Construction of houses should

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Currently

India

exporting

cement

to

Bangladesh,

Srilanka, Nepal, U.A.E., Maldives, Philippines, Yemen, Dubai, Qatar, and of few other countries. The international cement rate is mostly in bulk for which, India has virtually no facilities either in the cement or in the transportation and handling. The infrastructural facility in our ports are inadequate for receipts, storage, handling, loading and unloading of cements for instance Japan loads over 10,000 tons of cement clinker a day as compared to Indias 3,000 ton a day.

COAL REQUIREMENTS: The availability and movement of coal has been of perennial problem of the cement industry. 90% of the coal deposits are located in four states in Bihar, Orissa, West Bengal, and Madhya Pradesh. Also burning Madhya Pradesh none of the other states have any sizable lime stones deposit. This coal has to be handled or very long distance. Coal requirement by the industry today stands at 13 million tons at the 6% of the coal production. charge exorbitant prices. Cement manufacturer are left the mercy of traders in coal who The coal requirements may go upto 21 million tons in 2004-05 and 25 million tons by 2010. Transportation whether by rail, road or sea plays a crucial role in the marketing and pricing of cement.
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Transportation cost has gone up by over 100% during the last 10 years. The bright for movement of cement for a This was further distance of 750 km was increased from rupees 134 per ton in May 1982 to rupees 456 in April 2001. stepped upto rupees 484 by the railway budget for 2004-05. According to cement manufacturing association (CMA) on investment of rupees 500.00 million will be needed by the industry in the next 10 years in order to double its capacity, if it is to meet the countries demand on other rupees 150.000 million would be required for expansion and modernization. The cement industry has taken rapid strides in area like energy conservation, mining, cement manufact5urer and environment protection, thanks to efforts made by the nation council for cement and building material (NCBM) and other research organization. As a result of large scale modernization and technology up gradation, the industry is able to produce Cement at High quality comparable to the best in the world. During the last two decades the industry did experienced some technological changes. This includes; 1. Introduction of pre-calcinations technology. 2. Computer controlled kiln operation. 3. Pre blending of lime stone / coal and 4. Online quality control system.

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The technological changes have resulted in reduction in the overage energy consumption. The excise and transportation of cement need to be pruned particularly in the present context of liberalization and also the need for boosting exports. In respect of vital in put like cement and any undue cost escalation needs to be checked.

TRANSPORTATION

The cost of transportation and distribution constitutes a large chunk of the price the customer pays for cement - it can be as much as 30% at many locations in the country. For a low value basic product like cement, minimizing of transportation and distribution is in national interest to make the economy more cost competitive. Today nearly 60% of cement of production units to supply points is transported by road and rest by rail. For long distance movement of cement, rail is still the preferred option due to its lower cost. Nearly all the cement from supply points to customer is transported by road. The cost competitiveness of both rail and road transport has important bearing on the price of cement. Railways have been steadily losing cement traffic due to the inflexibility of freight and the operational; restrictions imposed on the customer. indeed laudable but if this is achieved by entire burden to its customers, The recent improvements of operational efficiencies of railways is passing on the We fear that the cost
27

competitiveness of railways will worsened in a long run - at least for a large volume low price product like cement. Railways must examine all secondary incurred by cement producer in transportation of cement from rail heads if the cost competitiveness of rail movement is to be improved. Railway should also consider allowing cement producer to operate point-to-point rakes, with multiple unloading points. Road transportation during the last years was adversely effected due to sharp and repeated increase in the price of diesel. Taking advantages of the effective caring capacity of trucks, road transporter were offering competitive freight rate by carrying mare than stipulated loads. However the enforcement of carrying load restriction in the recent past in many states has seriously disrupted road transport system in the country. Freight has shot up with the demand for a Also pollution and higher number of vehicles for the same impact on the cement industry will ever more severe. large number of vehicle. traffic will increase if the same volume is transported by

It is apparent that motor Vehicles produced in the country have the capacity to carry large loans per axle than is currently stipulated, with out compromising safety. It will in the national interest to consider upward revision of the present stipulated permissible loads per axle is that the existing stock of vehicles is more productively used. This will also meet the needs of the cement industry which one of the largest used of road transport. Indian railway has revised upward the effective capacity of their wagons; a similar move
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is called for in respect of road transport to tie over the looming crisis.

CHAPTER 4 THE ASSOCIATED CEMENT COMPANIES LTD

INTRODUCTION ACC - MILESTONES ORGANISATION STRUCTURE AWARDS & ACCOLADES

READY MIXED CONCRETE PROJECTS AND INVESTMENTS HUMAN RESOURCES

THE ASSOCIATED CEMENT COMPANIES LIMITED

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CHAPTER 4 THE ASSOCIATED CEMENT COMPANIES LTD INTRODUCTION The associated cement companies ltd (ACC) is the countries largest producer of cement it was established in 1936 with the philosophy of not to form a monopoly in cement production but now, the situation of Indians cement industry virtually becomes monopoly in favor of ACC. That means ACC becomes such a giant in cement industry that the other Indian industrial giant like birla, L&T, etc., who have already entered into the cement industrial field are not able to give a bit of competition to ACC. Despite a lot of ups and downs faced by the several region. ACC becomes an It is the unbeaten sovereign of Indian cement industry. oldest cement companies among the private sector. The ACC is the only cement company having the research centre using. It has the central research at Thane of Maharastra which was established in 1965. Here various type cement and cement based products are developed for the first time in India. Many of them are substituted with some of the export from western countries. It is the only company in India which products variety and of cement and cement based product. Its products are export from India. The company produces such a class of
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goods which produced in the west. Only ACC produced such variety of products in India with completely ingenious technology. The company is known develops its own technology called ACC TECHNOLOGY. ACCS 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. 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.

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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. For decades now, ACC has been forging a pioneering path making cement. Along the way, it sharpened its expertise on the cutting edge of the latest processes and technologies: learning/adapting - not just transplanting - to meet the specifics of local operating parameters. In the process - setting standards, innovating, not just meeting needs, but anticipating them. A strategic alliance 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. Holcim - a new partnership 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

32

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 has 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 name suppliers in of concrete, aggregates and and certain and construction-related services. Holcim is also a respected information technology research 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 has welcomed this new association.

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ACCs Head Office - Cement House, 121 Maharshi Karve Road, Mumbai. ACCs registered office was first located at Esplanade House in South Mumbai, a graceful edifice that still stands out in its neighborhoods. The head office then shifted to its own premises in Cement House shown here. The address of this stately building was then Number 1, Queens 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.

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ACC - 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 ACCs first community development venture near Bombay 1947 Indias first entirely indigenous cement plant established at Chaibasa in Bihar 1952 Village Welfare Scheme launched 1956 Bulk Cement Depot established at Okhla, Delhi 1957 Technical training institute established at Kymore, Madhya Pradesh. 1961 Oil well Cement manufactured at ACC Shah bad Cement Works in Karnataka for cementation of oil wells up to 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.

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1965 ACCs

Central

Research

Station

(CRS)

established at Thane 1965 Manufacture of Portland Pozzolana Cement. 1973 Take-over of The Cement Marketing Company of India (CMI)
1978

Introduction of the energy efficient precalcinator technology for the first time in India. Full scale commercial production based on MFC

technology at Wadi in 1979. 1979 ACC wins international contract for operation and management of a new one million tone cement plant at Yanbu-Ras Biridi in Saudi Arabia. 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. 1998 Commissioning of the 0.6 MTPA cement grinding unit at Tikaria, Uttar Pradesh. 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. 2003 IDCOL Cement Ltd becomes a subsidiary of ACC 2004 IDCOL Cement Limited is renamed as Bargarh Cement Limited (BCL).
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2004 ACC raises US $ 100 million abroad through Foreign Currency Convertible Bonds (FCCBs) for US$ 60 million and Global Depository Shares (GDSs) for US $ 40 million. Both offerings are listed on the London Stock Exchange. 2005 ACC receives the CFBP Jamnalal Bajaj Uchit Vyavahar Puraskar Certificate of Merit 2004 from Council For Fair Business Practices. 2006 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, ACILs shareholding in ACC increases to 34.69 % of the Equity share capital of ACC. 2007 Commissioning of Modernization 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.

2007 Sumant Moolgaokar Technical Institute completes 50 years and reopens with new curriculum

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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. 2010 ACC enters its platinum jubilee year - the first company in the cement industry to achieve this status
38

2010 ACC receives FICCI Award for Outstanding Corporate Vision Triple Impact Business Performance Social & Environmental Action & Globalisation for 2009-10 - a unique award received for the first time 2011 World's largest kiln installed at ACC Cement Plant, Wadi, Karnataka with a capacity of 12,500 tonnes per day creating new landmarks for cement industry 2011 Central Control Room Building at ACC Chanda Plant, Maharashtra set up as a Green building, the first of its kind in an industrial environment

ORGANISATION STRUCTURE The ACC Board comprises executive, non-executive, and nominee directors. consistent This with group the is responsible policies of objective for the of determining Company the objectives and broad

primary

enhancing long-term shareholder value. The Board meets once a month. Two other small groups of directors - comprising Shareholders'/Investors' Grievance Committee and Audit Committee of the Board of Directors - also meet once a month on matters pertaining to the finance and share disciplines. Besides these bodies, there are senior executives and other regional managers - based at the Company's corporate office, and at its marketing offices and manufacturing units -

39

who contribute to the development and operation of the various functions. While these groups form the core management team that frames and guides corporate policy, ACC is proud of its manpower strength of about 15,000 people, who comprise experts in various disciplines assisted by a dedicated workforce of skilled persons. Quite a number of them have logged many years of service with the organization. They come from all parts of the country and belong to a variety of ethnic, cultural and religious backgrounds. Because of such a cosmopolitan make-up, ACC can rightly be said to embrace within its fold a family that forms a 'mini-India'.

Awards & Accolades

National Award for outstanding performance in promoting rural and agricultural development by ASSOCHAM

Sword of Honor - by British Safety Council, United Kingdom for excellence in safety performance.

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.

40

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.

Indo German Greentech Environment Excellence Award

Golden

Peacock

Environment

Management

Special Award - for outstanding efforts in Environment Management in the large manufacturing 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

Vishwakarma

Rashtriya

Puraskar

trophy

for

outstanding performance in safety and mine working

Good Corporate Citizen Award - by PHD Chamber of Commerce and Industry

Jamnalal Certificate Practices

Bajaj of

Uchit by

Vyavahar Council

Puraskar

Merit

for Fair

Business

41

Greentech Safety Gold and Silver Awards - for outstanding performance in Safety management systems by Greentech Foundation

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 Utilization - by Ministry of Power, Ministry of Environment & Forests and Dept of Science & Technology, Govt of India for manufacture of Portland Pozzolana Cement.

CEMENT BUSINESS Our cement business performed well during the year. ACC as a group registered increased sale of 12.97 million tones of cement for nine months ended December 31, 2007 as compared to 12.14 million tones in the corresponding period of the previous year. The sales turnover for nine months ended December 31, 2007 grew to Rs.2794.33 crores as compared to Rs. 2494.05 crores in the same period of the preceding year. Your Company has reoriented its marketing activities with greater focus on the customer and end-user. Several initiatives have been taken to provide much more service
42

orientation in a manner that will help differentiate the image of the Company.

READY MIXED CONCRETE Your Companys Ready Mixed Concrete (RMX) business maintained the growth trend witnessed in the last few years with the turnover of this business growing by 27 per cent in the nine months ended December 31, 2007. We further strengthened our RMX business by the acquisition of Tarmac (India) Pvt. Ltd., the Indian arm of Tarmac Heavy Building Materials Overseas Ltd. of UK, with RMX units in Mumbai region. Ready Mixed Concrete industry is perhaps among the fastest growing sectors in India with compound annual growth rate of over 30 per cent. In the coming years the country will witness increased construction activity with faster development in our cities and infrastructure. RMX is expected to play a very important role in this scenario. An important ingredient in RMX is aggregates. These minor minerals come under the purview of state governments and their mining is predominantly in the unorganized sector. As a result, supplies are erratic and prices fluctuate widely, adversely affecting RMX industry. There is a need to revisit the current policy of granting short term leases if the aggregate production has to evolve as an organized sector in our country.

43

PROJECTS AND INVESTMENTS The Company successfully completed the modernization project at Chaibasa and commenced commercial production on September 16, 2007. Our other projects viz augmentation of capacity at Gagal Unit II in Himachal Pradesh, augmentation of grinding capacity at Wadi and Tikaria, expansion of capacity at Lakheri and the setting up of a 25 MW Captive Power Plant at Lakheri are progressing on schedule. DISINVESTMENT During the year, we made notable progress in exiting from our non-core non-cement business. We divested the Refractory Business in September, 2007 to ACE Refractories. The sale of this unit earned us a profit of Rs.174.05 crores. Similarly we exited from Everest Industries which ceased to be a subsidiary of your Company. We hope to divest our balance non-core subsidiaries during 2006. CONSOLIDATION Two of your Companys subsidiaries Bargarh Cement Ltd. and Damodhar Cement and Slag Ltd. were merged with the Company after receiving the necessary approvals. With this, your Company now operates a countrywide network of 14 cement plants based at 10 12 locations. Annual cement capacity of your Company now is 19.03 million tones.

44

CHANGE OF NAME: The Board of Directors decided that the name of your Company be abbreviated and changed to ACC Limited so as to reflect its Corporate image and brand name more accurately. Over the years, your Company has come to be referred popularly in the cement market and the financial world by its acronym ACC. The Companys products are also sold under the name ACC which has been registered as a Trade Mark. We believe that the change of name to ACC Ltd. will be more user-friendly. DIRECTORATE Your Board has been strengthened with the joining of Mr. D K Mehrotra, Mr. R A Shah, Dr Nirmalya Kumar, Mr. S Haribhakti and Mr. A Singhvi. Mr. D K Mehrotra is the Managing Director of Life Insurance Corporation of India. He has held important positions in LIC in India and abroad. Mr. R A Shah is a senior partner of Crawford Bayley & Company and a reputed solicitor specializing in a broad spectrum of corporate laws. Dr Nirmalya Kumar is a Professor in London Business School and well-known in the field of management education. A prolific writer, Dr Kumar is the author of many books on management.

45

Mr. Haribhakti is Managing Partner of a leading accounting firm Haribhakti & Co and CEO of Haribhakti Group having a presence of more than five decades in the areas of accounting, financial and management services in India. Mr. Anil Singhvi has been associated with Gujarat Ambuja Cements Limited (GACL) since 1986 and has held very senior managerial positions in that Company. He is presently the Managing Director of GACL. I welcome these distinguished gentlemen to the Board. We stand to gain much from their expertise. HUMAN RESOURCES I have been a great admirer of the talent of your Companys people. Their dedication upholds and nurtures the enviable reputation of the Company. They are enthusiastic and quick to adapt to changes in the environment while maintaining high standards of efficiency as well as the great ethical tradition that ACC is known for. They are indeed the architects of the impeccable image and high standing of the Company. ACC enjoys a track record of peaceful and harmonious industrial relations. I wish the employees of your Company and their familys good luck and health always.

46

-TRAINING - WELFARE

TRAINING An enterprise like ACC is part of the national community with responsibilities towards a wide range of institutions and individuals. And the one closest to ACC is its concern to train manpower for the cement industry as well as in specialized trades and subjects for various industries. The Sumant Moolgaokar Institute (SMEI) - is an eloquent testimony to the ACC commitment to training. It provides exhaustive training in various trades like electricians, instrument mechanics, diesel mechanics, fitters, machine tool operators, welders, and foremen in various disciplines. The institute has turned out a vast number of artisans and foremen who are manning senior positions in cement and other industries. ACC's commitment to training and the company's philosophy of sharing expertise by training manpower for the cement industry as a whole is very well known. It has been substantiated by an allocation by the World Bank/DANIDA groups of a grant to the Regional Training Center (RTC), at the ACC plant at Jamul, for the benefit of cement plants in central and eastern India. The analytical skills development program (ASDP) helps management trainees improve thought processes and analytical ability in order to uncover and examine problems

47

more effectively. Deputy Managers are put through a managerial skills development program (MSDP) to instill the skills required for responsible leadership and analytical business situations. A management competency development program (MCDP) supports this with niche training for managers in their respective fields. And the cross-functional skills development program (CFSD) helps broaden their outlook. Finally, the general management course (GENMANCO), and the help strategic them to leadership develop development program (SLDP) for senior managers and vice presidents, sharpening. WELFARE It is all too easy to see a company like ACC in abstract terms of balance sheets, technologies and organization charts. Such a view overlooks the fact that the most valuable assets are the commitment and skills of individuals who make the system work and lay the foundations for future growth. Apart from laying stress on training, ACC offers a host of facilities to its employees to maintain a congenial working environment. cooperative Among societies, those given at the factories: houses/tenements for a large number of workers and staff, crches, dispensaries/hospitals, canteens, rest halls and so on. Benefits are liberally subsidized by the company. respectively, responsiveness towards the current and future challenges by

48

Over the years, the company's community welfare schemes have continued to benefit the people around whom ACC moves and has its operations with activities including health care, adult education, irrigation, animal husbandry, cottage industries etc.

49

THE ASSOCIATED CEMENT COMPANIES LIMITED Registered Office: Cement House, 121, Maharshi Karve Road, Mumbai - 400 020

CONSOLIDATED AND STANDALONE AUDITED FINANCIAL RESULTS FOR THE PERIOD APRIL 2007-DECEMBER-2007
- CONSOLIDATED PROFIT AFTER TAX FOR APRIL-DECEMBER-07 UP BY 133 % AT Rs. 513.73 CRORE. (STANDALONE - Rs.544.18 CRORE UP BY 156 %) - CONSOLIDATED SALES VOLUME FOR APRIL-DECEMBER-07 12.97 MT UP BY 6.8%. - CONSOLIDATED SALES VALUE FOR APRIL-DECEMBER-07 UP BY 10 % (STANDALONE UP BY 15 %) - CHANGE IN ACCOUNTING PERIOD - DIVIDEND 80 %

50

I. The audit committee have reviewed and the Board of Directors of the company have approved the audited Consolidated and Standalone accounts for the period April to December-2010 at its meeting held on January 24, 2011 and the text of this statement was also taken on record. II. AUDITED CONSOLIDATED RESULTS
YEAR (NINE

NINE MONTHS

YEAR

MONTHS) ENDED ENDED ENDED DEC 31, DEC 31, MARCH 31, 2010 2009 2011 AUDITED REVIEWED AUDITED Rs.Crore Rs.Crore Rs.Crore INCOME FROM 3861.18 3508.79 4864.72 497.72 3363.46 464.39 3044.40 637.50 4227.22

NET

SALES

OPERATIONS LESS: EXCISE DUTY RECOVERED NET SALES

OTHER INCOME i) Dividend 4.72 ii) Gain/(Loss) on foreign exchange (6.98) (Net) iii) Other items 84.63 iv) Other non-recurring items 25.58 1.20 3472.61

0.17 (3.88) 38.31 18.37 0.35 3097.72

0.23 (4.59) 68.32 31.91 0.82 4323.91

3 Share of earnings of Associates TOTAL (1+2+3) 4 TOTAL EXPENDITURE

a)( Increase) /Decrease in stock in trade (53.71) b) Consumption of Raw materials 568.75 c) Staff cost 204.35 d) Power & Fuel 678.87 e) Outward Freight charges on Cement 532.72 etc. f) Excise Duties (Net) 45.43

(62.35) 533.87 190.39 647.10 404.40 49.26

(47.70) 733.15 256.97 842.64 542.24 64.95

51

g)

Purchase

of

Cement

&

Other

Products h) Other Expenditure Total Expenditure

47.90 771.49 2795.80

62.85 700.40 2525.92

84.11 1037.28 3513.64

PROFIT

BEFORE

INTEREST, ITEMS 676.81

DEPRECIATION, MINORITY INTEREST, EXCEPTIONAL AND TAX (1+2+3-4)

571.80

810.27

6 7 8

INTEREST (NET) DEPRECIATION MINORITY INTEREST PROFIT/(LOSS) AFTER MINORITY

65.97 171.70 4.13

71.08 168.41 4.13

92.54 225.70 6.11

INTEREST & BEFORE TAX & EXCEPTIONAL ITEMS 435.01 (5-6-7-8)

328.18

485.92

10 EXCEPTIONAL ITEMS a) (Provision) / Write contingencies b) Profit on sale of

back

of 1.44

(0.50) -

(0.50) -

174.05 Refractory Business c) Employees retirement Benefits (13.15) d) Profit from Divestment of Subsidiary 69.00 PROFIT/(LOSS) EXCEPTIONAL ITEMS & BEFORE TAX ( 9+10) AFTER 666.35 75.84 70.47 6.31 PROVISION (11-12-13-

undertaking-

11

327.68 34.33 73.07

485.42 59.86 23.04

12 PROVISION FOR CURRENT TAX 13 PROVISION FOR DEFERRED TAX 14 FRINGE BENEFIT TAX PROFIT/(LOSS) AFTER

15

FOR TAXATION & EXCEPTIONAL ITEMS 14)

513.73

220.28

402.52

52

16 Paid- up Equity share capital ( Face value per share Rs.10 ) Reserves Reserves Basic Share Diluted Share Aggregate of Earnings Rs. Earnings Rs. excluding Revaluation

184.72

179.57

178.74

17

1966.89

1501.19

18

per 28.33 per 27.46

12.36 11.91

22.58 21.73

19

Non-Promoter 122546336178416154 178533611 66.42% 100% 100%

Shareholding Number of Shares Percentage of shareholding

53

V. Turnover and Profits CONSOLIDATED The accounting year has been changed from April March to January December. Therefore the accounts have been drawn up for Nine months for the period ended December 31, 2010. The profit after tax for nine months ended December 31, 2010 increased to Rs. 513.73 crore including profit on sale of Refractory business and profit on sale of subsidiary as compared Rs. 402.52 crore for financial year 2010-11 (12 months). Sale of cement for nine months ended December 31, 2010 was 12.97 million tones as compared to 16.57 million MT for the financial year 2010 (12 months). Sales turnover for nine months ended December 31, 2010 was Rs. 3,363.46 crore as compared to Rs.4227.22 crore for financial year 2009-11 (12 months). Improved volume and realization as offset by increase in cost of inputs has resulted in higher profit before interest, depreciation, exceptional items and tax at Rs. 676.81 crore for nine months ended December 31, 2008 as compared to Rs. 810.27 crore for financial year 2010-11 (12 months). Interest cost (net) was Rs. 65.97 crore for nine months ended December 31, 2010 as compared to Rs. 92.54 crore for

54

financial year 2010-11 (12 months). Depreciation was higher at Rs. 171.70 crore as compared to Rs. 225.70 crore for financial year 2010-11 (12 months). The above explanations hold good for standalone results. VI. New Projects/Modernization The modernization project at Chaibasa commenced

commercial production with effect from September 16, 2010. The augmentation of capacity at Gagal Unit II and projects at Lakheri for expansion of capacity and setting up 25 MW Captive Power Plant are progressing as per schedule. VII. Divestment of Subsidiary The Company has sold 85.48 lakh shares of Everest Industries Limited (EIL) and appropriate profit on sale has been recognized during quarter ended December 31, 2010. EIL ceased to be a Subsidiary of the company. VIII. Divestment of Refractory Business The Company has divested its Refractory Business as on September 30, 2010 and profit on sale of undertaking amounting to Rs. 174.05 Crore has been recognized during the nine months ended December 31, 2010. IX . Merger The companys subsidiaries Bargarh Cement Ltd. and

Damodhar Cement and Slag Ltd. have been merged with the

55

Company as per the scheme for merger duly approved by the Shareholders and confirmed by the respective Courts. The numbers of subsidiaries are reflected in the results of the company. X. Acquisition The Company acquired 98.84% of the Equity shares of Tarmac (India) Pvt. Ltd... (TIPL) from Tarmac Heavy Building Materials Overseas Ltd., UK. TIPL is in the Ready Mix Concrete business. TIPL is now a subsidiary of the Company. It is proposed to merge TIPL, subject to requisite approvals with Company with effect from January 1, 2011. XI Outlook The cement industry recorded a growth rate of around 10% for nine months ended December 31, 2011 as compared to 8.7% in the corresponding previous period. With the continued emphasis on infrastructure and housing sector and with good monsoons in most parts of the country, industry is expected to do well in future. With the improving overall growth of the economy (GDP) which is expected to be over 7% per annum and with improving demand-supply dynamics, cement industry may experience stable to improved cement prices. XII Dividend The Board of Directors has decided to recommend a dividend of Rs. 8 per share aggregating to Rs. 168.31 Crore (including

56

tax on dividend). (M.L.Narula) MANAGING DIRECTOR Mumbai - January 24, 2011 Our Vision

ACC (The Associated Cement Companies Limited) is India's foremost manufacturer of cement and concrete. Its sales turnover for nine months ended December 31, 2011 grew to Rs.2794.33 crores as compared to Rs.2494.05 crores in the same period of the preceding year. 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 about 9000 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 and trendsetter personnel and important benchmark for the cement industry in respect of its production, marketing management processes. Its commitment to environment-friendliness, its high ethical standards in business dealings and its on-going efforts in community welfare programmer have won it acclaim as a responsible corporate citizen. ACC has made

57

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. All of this is underscored inasmuch as this research and technology base - housed under an autonomous division known as Research and Consultancy Directorate (RCD) - has received recognition from premier research and technology institutes in India and abroad. Today, the company's operations are spread

throughout the country - with 14 cement factories, 11 regional marketing offices, 21 area offices, and a dedicated employee band of about 9000 people from all corners of India. ACC has also extended its services overseas to the Middle East, Africa, and South America, where it has provided technical and managerial consultancy to a variety of consumers, and also helps in the operation and maintenance of cement plants abroad.

58

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 ACCs full name, The Associated Cement Companies Limited, itself indicates the companys origins from a merger. Many years later, some stockbrokers in the countrys leading stock exchanges still refer to this company simply as The Merger. 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.

59

60

CHAPTER 5 FIRM PROFILE

(SRI SHABAREESH AGENCIES) CEMENT DEALERS IN SHIMOGA

MARKETING AND POLICIES OF THE FIRM

MARKETING PROBLEMS

61

CHAPTER 5 FIRM PROFILE

SRI SHABAREESH AGENCIES was opened in 1985. It is situated on balraj urs road for being more convenient to interact with transports. young man aged 48, Mr. C.P. SUNDAR RAJ, is the S/O C.V. Puttanna shetty. His He MANAGING PARTNER of SRI SHABAREESH AGENCIES, he is a Qualification is P.U.C. His native is Kadur District Karnataka. Chikmgalur

He migrated to shimoga in 1985.

Knows English, Kannada, Hindi, Tamil and Telugu language. Mr. C.P. Sundar Raj has 30 years experience in trading activities. He started business in 1976 as a small shopkeeper at Kadur taluk. After 2 years of experience he started wholesale business also in the age of 20th he moved to north India for purchase of Hardware in wholesale and retail market. He started his business in and around Kadur covering about 150 km in radius. In 1985 he got separated from his family and came and settled down in shimoga with the small cash in hand started in 9-9-1985 He had his own circle of friends and relatives

62

and improved the business royally good competing with local market. He made his name to be at the top of the town. He

mainly dealing with constructions steel equipments and cement in the name style of Sri Karthik Hardwares. First it was situated in 3rd cross, Garden area and after one year he shifted for his own premises situated at Durgigudi, main road. He was dealing with number of brands of cement with quality, such as. 1. ACC 2. BAGALKOT 3. DIOMOND 4. RAASHI 5. CORAMANDAL etc., After a long successful carrier in business. ACC

recognizes him from being a good seller in 1990 and appointed him as C&F agent (clearing and forwarding agent). According to the saying of Mr. Sunder raj, a dealer may not be a highly qualified but highly sensitive to assess the customer and his requirements the best service possible given will be recognize. Any convinced customer will be a free advertiser. He explains also he had well experience with co-traders, Engineers, Financiers, Contractors and even with Politicians, no body can guess the business at any time may get affected with any of the agency said above.

63

And as C&F agent he has got 9 staff members in the Office, and 80 Hamals at the godown, and 100 at the Railway station, and he has owned by 20 Lorries for clearing the Cement. CAPITAL STRUCTURE At that time the initial capital of the firm was 5, 00,000. The firm started this by taking Loans from Vysya bank shimoga. It includes the cost of Furniture, advance of building, lighting arrangements etc., the firm involves in dealing with cement products according to the customer behavior with reference to various brands of the products. CEMENT DEALERS IN SHIMOGA AUTHORISED DEALER: 1. Ganesh steels. 2. K.S. Narayana setty and sons. 3. Salamath Enterprises. 4. Sri Veerabhadreshwara traders. 5. Hampee virupaksha traders. 6. Chowthy traders. 7. Anand trading company 8. Sagar traders. 9. Banashankary traders. 10. Sri Venkateshwara traders. 11. Nutan agencies. 12. U.K.S. Sitaram Acharya.

13. Sri Gurukaribasaveswara Traders.

64

Table No-1 Table showing the number of dealers in some districts who have dealing with Shabareesh agencies as C&F agents. They are shown by percentage. Districts South canara Udupi Shimoga Chikmagalore Hassan No. Of dealers 29 12 20 17 10

From the above table Sri Shabareesh agencies have dealing with dealers in some districts. and Udupi has 16% of dealers Among 5 districts respectively, and South canara has 37% of large number of dealers, shimoga Chickmagalore has 17% dealers and Hassan has small number dealers by 10%.

MARKETING AND POLICIES OF THE FIRM

65

Modern

market

is

consumer

oriented

market.

Consumer is the king of the market begins with consumer needs and ends with consumer satisfaction. Such market is conditioned by two set of factors. Controllable and uncontrollable factors. Controllable factors are those factors which are with in the hold of the firm. The success of the product depends upon these factors. 1. Product Mix policy 2. Price Mix policy 3. Promotional Policy 4. Distribution Policy 1. PRODUCT MIX POLICY: Shabareesh agencies are promoting their business as C&F agents of M/S ACC Ltd with dealing with cement. The firm deals with cement according the order given by the dealers. As the product which the firm is dealing is exclusively under the category of cement.

2. PRICE MIX POLCY Pricing is the most important marketing mix policy. It has strategic importance as pricing is marketing weapon. It required by the firm to undertake a good pricing policy because it is an important factor which influences the customer in purchasing of product. Shabareesh agencies are exclusively C&F agents for M/S ACC Ltd and they act according to the norms of the firm

66

by pricing, collection, service documentation, reporting, and acknowledgements etc.

3. PROMOTIONAL MIX POLICY M/S The ACC Ltd has adopted several promotional activities to move forward the cement product in market. It has undertaken advertising of the product through broad advertisement. The company has adopted broad advertising because it acts as an effective sales man. measures popularity, Its name is, a) News paper advertisement b) Calendar c) Cable advertisement. 4. DISTRIBUTION MIX POLICY Distribution means transfer of the product from C&F agents to dealers to final consumer. Shabareesh agency supplies goods directly to the consumer or contractor. The company directly deals with the final consumer and some time takes the help of middleman like contractors or Home builders. through which the company has The other taken to

67

MARKETING PROBLEMS M/S The ACC Ltd directly involves in marketing problem and looks in to the depth of all the fallowing problems.

1. Competitive market. 2. Price fluctuation 3. Consumer awareness 4. product advertisement 5. Location of the Firm 6. Size of the firm.

68

CHAPTER 6 SURVEY FINDINGS

INTRODUCTION MEANING OF SURVEY OBJECTIVES OF THE SURVEY LIMITATIONS OF THE SURVEY ANALYSIS OF THE SURVEY CONSUMER SURVEY FINDINGS

69

CHAPTER 6 SURVEY FINDINGS INTRODUCTION: Today the consumer is the king of the market. Consumer is the only judge, the reputation or otherwise of a product is entirely dependent upon his attitude towards the product so his satisfaction should be ultimate motto of the producer and the marketer. Consumers interest should be taking into co-ordination while taking marketing decision. It is through consumer satisfaction only the producers and marketers can improve their sales profit. Many opinion will come when survey is made for preference, improvements etc., of the product, but the opinion of the consumer is important. This report gives an analysis of opinion collected from the customer regarding marketing of cement especially ACC cement as against other brand. MEANING OF SURVEY Survey means going into department of respondent and collecting his inner expression for the purpose of knowing his attitude about which the survey is conducted. Customer faced problems while dealing with the ACC cement. There fore to study to their problems, Questionnaire was prepared and given to the selected customer. The
70

selecting of customer is made on the basis of sampling method and to those4 selected customer are given the format of questionnaire and are requested to fill it on return to us. I have conducted a survey about 100 customers. Who have their dealing with ACC cements in Shabareesh agencies? OBJECTIVES OF THE SURVEY 1. To know the general opinion of the customers about the ACC cements. 2. To know the opinion of the customers about the customer service rendered by agencies. 3. To know the effectiveness of the service provided by the Shabareesh agencies in comparison with other dealers. 4. To know whether the service provided by the agency is satisfactory or not. 5. To know whether the service provided by the ACC is improving in the recent years. LIMITATIONS OF THE SURVEY 1. 100 number of respondents contacted. 2. Lack of prompt reply given by the customer or more precisely biased reply given by the customer. 3. Hesitation among the customer to freely express their views.

71

4. Lack of awareness among the customer about the procedure carried out by the bank. 5. Indefinite and vague problems and suggestion provide by the customer etc., ANALYSIS OF THE SURVEY The analysis of the survey was done by dividing the total respondents into different categories are on the basis of income and occupation. During the time of surveying the customer was not clear about their demand nor they had clear comprehension of their problems and definite in their suggestion for the solving the problem. However the following problems were found out at the time of the survey, and the same was to Acc authorities. The ACC authorities were enough to give answer to those problems faced by the customers. CONSUMER SURVEY FINDINGS: The total number of respondents interviewed had used cement fully and it was observed that the ACC cement was quite well known in the city.

72

Table No-1 Table showing the Distribution of cement consumer

interviewed in different areas in Shimoga district. Regions Shimoga Thirtahalli Bhadravathi Soraba Sagar Hosanagara Total No. Of respondents 25 30 20 14 10 5 100 Percentage 25% 30% 20% 14% 10% 5% 100%

From the above table it is clear that major number if respondents contacted from Thirtahalli and minimum from Hosanagara.

73

Graph showing the Distribution of cement consumer interviewed in different areas in Shimoga district

Sagar 1 0% Soraba 1 3%

Hosanagara 5%

Shimoga 24%

Bhadravathi 1 9%

Thirtahalli 29%

74

Table No-2 Table showing the distribution of cement consumer according to brand and area interviewed.
REGION Shimoga Bhadravathi Sagara Hosanagara NUMBER OF A.C.C 10 5 6 3 INDIAN CEMENTS 3 1 2 2 Grashim OTHERS 8 7 2 2 2 1 -

CONSUMERS 38 25 20 17

The table gives maximum details regarding the respondents interviewed, i.e, and brand wise in different parts in shimoga. In this table out of 100 respondents 38 in Shimoga, 25 in Bhadravathi, 20 in Sagar, and 17 in Hosanagar Respectively.

75

Graph showing the distribution of cement consumer according to brand and area interviewed

40 35 30 25 20 15 10 5 0 NUMBER OF CONSUMERS A.C.C INDIAN CEMENTS Grashim OTHERS

76

Table No-3 Table showing the distribution of respondents under Income groups. INCOME GROUP NUMBER OF RESPONDENTS 26 32 24 18 100 PERCENTAGE 26% 32% 24% 18% 100%

P/M Below 10,000 10,000-15,000 15,000-25,000 Above 25,000 Total

Out of the 100 respondents contacted 32% of them from 10,000-15,000 which constitute the largest portion of the respondents and the lowest group is of the income group above 25,000 which is of 18% only.

77

Graph showing the distribution of respondents under Income groups.

35

32

30 26 24 25 18

20

15

10

0 Below 10,000 10,000-15,000 15,000-25,000 Above 25,000

Table No-4

78

Table showing consumers opinion about the ACC cement in Shimoga as per their Occupation

OPINION

BUSIN ESS MAN

SALA RIED EMPL OYES 8 9 11 -

PRO FES SION

OTH RS

TOTAL

BETTER GOOD SATISFACTORY NOT GOOD

10 13 15 3

24 32 36 8

29 32 39 -

7 11 6 1

28 44 24 4

4 1 1

66 17 17

29 34 32 05

The above table shows that the classification of respondents according to their occupation and their opinion of the service towards ACC cements. In the first group 41 respondents are Business man and among 41 respondents, 10 respondents opinion that the service provided by the ACC ltd is Better, 13 respondents opinion is good and majority that is 15 respondents opinion is satisfactory and the last very few that is 3 respondents opinion is not bad. In the second group 28 respondents are salaried Employees. Among 28 respondents majority of respondent that is 11 opinions is satisfactory, 8 of them is Better and 9 have respond good. In third group, that is 25 respondents are from Profession and it shows their opinion about service among 25 respondents 7 have respond Excellent, 11 have respond good and only 1 responded Not bad.
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In fourth group, that is 6 have responded who are Engaged in some other occupations, among 6 respondents 4 responds that the service is Better, only 1 responded have good opinion and another responded also have good opinion.

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TABLE NO-5 Table showing the respondents using ACC cements as per their occupations. Uses Used Not used Total 21 32 12 25 10 18 15 25 58 100 Business Man 11 Salaried Professio 8 Others 10 Total 42 employees n 13

Above table show that out of 100 respondents 42 respondents were used ACC cements and 58 have not used it. Out of 42 respondents 11 were from Business man, 13 from salaried employees, 8 from Profession and 10 from other Occupations. Among 58 Respondents who were not used ACC cements, among them 21 from Business mans, 12 from other occupations.

81

Graph showing the respondents using ACC cements as per their occupations

25

21 20

15 13 11 10 8 12 10 10

15

0 0 Uses

0 Business Salaried employees Profession Others

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Table No-6 Table

Brands Acc Indian Cement Grashim Others TOTAL 8 6 10 36 6 8 4 28 8 4 6 32 5 7 9 29 27 25 29 100

showing
Business man 12

the

distribution

of

cement
Others 8

consumers
Total 44

according to their occupations.

Salaried employees 10 Profession 14

The above table show that the first occupation group i.e, Business mans are using 36 in that, 12 respondents are using ACC, 8 were Indian Cements, 6 were Raashi and 10 were other Cements. In second group i.e, 28 respondents are salaried employees. Among them 10 were using ACC, 6 were using Indian cements, 8 were using Grashim and 4 respondents using other cements respectively. In third occupation, 32 respondents are using cements, among them 14 respondents using ACC, 8 respondents using Indian cements, 4 were using Raashi and other respondents are using other cements. In fourth occupation i.e, 29 respondents are using Cements, among them 8 were using ACC, 5 were using Indian cements, 7 respondents were using Raashi and other respondents were using other cements respectively.

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Graph showing the distribution of cement consumers according to their occupations

14

12

10

0 Acc Indian Business man Cement Salaried employees Grashim Profession Others Others

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Table No 7 Table showing the opinion of the consumers about ACC cements from the following aspects. Aspects Quality Price Demand Total Better 14 8 8 28 Good 8 6 10 22 Satisfactor y 16 8 11 35 Not bad 5 7 4 15 Total 43 29 35 100

According to the above table the consumers opinions about ACC is very good. In the first aspect Quality 43 respondents were responds very well. 14 responds better, 8 responds good, 16 responds satisfactory and 5 responds Not bad respectively. In the second aspects Price is also in very good condition. Among 29 respondents 8 responds better, 6 responds good, 8 responds satisfactory and 7 respondents respond not bad. In the third aspect demand is also in very good condition. Among 35 respondents 8 responds Better, 10 responds Good and 11 responds satisfaction and 4 members responds not bad.

85

Graph showing the opinion of the consumers about ACC cements from the following aspects

Not bad 12%

Better 33%

Satisfactory 36% Good 19%

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Table No-8 The table showing the consumers purchased cements from different dealers in shimoga. Number of Dealers in Shimoga Sri Ganesh Steels K.S. Narayana settee & sons Salamath enterprises Sagar traders Total consumers 36 20 28 16 100 Percentage 36% 20% 28% 16% 100%

From the above table 36 respondents were purchase cements in Ganesh steels, 20 respondents were purchase cement in KS.N. & sons, 28 respondents were purchase cements in Salamath Enterprises and 16 respondents were purchase in Sagar traders out of 100 respondents.

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Table No-9 Table showing the consumers are come to know about Shabareesh agencies from different aspects they are shown below. Aspects Friends Advertisement Dealers Contractors Total Number of respondents 26 38 18 10 92 Percentage 28.26% 41.30% 19.56% 10.86% 100%

From the above table consumers do purchase cement according to Shabareesh agencies from the opinion of Friends in 28%, and 38 consumers purchase cements by seeing advertisement, and 19% consumers are purchase by the suggestion of the dealers and 10% consumers are taking the suggestion from the contractors.

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Graph showing the consumers are come to know about Shabareesh agencies from different aspects they are shown below

40 35 30 26 25 20 15

38

18

10 10 5 0 Friends Advertisement Dealers Contractors

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Table No-10 Table showing the factors which have influenced the consumers to buy ACC cements they are shown in the table. Factors Price Brand Image Quality Door Delivery Total Number of respondents 24 12 42 22 100 Percentage 24% 12% 42% 22% 100%

Above table showing that the factors influenced the consumers to buy ACC cements by some important factors, they are 24% in Price factor, 12% in Brand Image, 42% in Quality of the product, and 22% were influenced by the service provided by the Company.

90

Graph showing the factors which have influenced the consumers to buy ACC cements they are shown in the table

Door Delivery 22%

P rice 24%

Brand Image 1 2% Quality 42%

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SUMMARY OF OBSERVATION In the present world the human being as a consumer should have the knowledge of every product he uses. This is because he should not become an easy pray for the seller trap. From this sample it was found that few respondents do not know much about cement. they purchased on their own. According to the dealer, they said that it is its first or craze that was driving people to buy popular brand cement. It is said that previously people use to OK just for the cement they were not bothered about the brand. But in the present market the consumer consider the price preference. It was also found that a few respondent of poor families said that they wanted to build their houses with cement, but due to high pricing of cement and which is going on increasing they had to give up. We can also infer that ACC cement has got a good scope for marketing in shimoga. They said that they do as their contractor or Engineers say. But majority of them said

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In shimoga, there are many cement dealers of almost all the brands in the market. But the major brands of cement according to the consumer are, 1. ACC 2. RAASHI 3. DIOMAND 4. BAGALKOT. In Shimoga ACC is the first Cement sold in terms of quality. Thus ACC cement has got a good reputation and a good place in the shimoga market. The number of dealers for ACC cement is more than dealers for any other cement in Shimoga. This shows that ACC cement has got a great demand in the Shimogas market.

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CHAPTER 7 SUGGESTIONS AND CONCLUSION SUGGESTIONS

CONCLUSION

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CHAPTER 7 SUGGESTIONS AND CONCLUSION SUGGESTIONS ACC Ltd., are one of the oldest manufacturers of cement in India. It has earned a good name in short period. It should maintain and improve the same. ACC Ltd, sales officer visit the dealer regularly that is once in every month. ACC Ltd should give credit facility to its dealers. ACC Ltd should pay much attention towards warehousing and transportation facilities.

ACC cement has earned a good name in the market. It should maintain and improve the same its price is high than the other cements. Some types consumers observe only price of the product in this regard ACC fails to participate in the cement market so product price will be maintain and economic level. A Sri Shabareesh agency has appointed As C & F agents for their good selling performance. cements. Sri Shabareesh should provide conveying service activities to dealers. So these agencies should maintain their good performance in selling of ACC

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 Sri shabareesh agencies should adopted different media of advertising in Kadur town in addition to the effort of the manufacturer. The prospective customer should be given promotional benefit. There fore promotional efforts are to be taken in effect continuously so that as prospective customer will develop a linking towards the product. Sri Shabareesh agencies should have sufficient vehicle to deliver the cement bag to the dealers who comes from outside villages. Sri Shabareesh Agencies should give regular Service.

CONCLUSION The finding of the survey is enough proof to show that ACC cements ranks high in quality, composition etc., It is observed that ACC cement has a maintained better product image among the person who have used it and are using it. The company has also vast network of salesmanship no doubt these things will have a long way in improving not only product image but also the corporate image. performance. But in competitive field one should not satisfy himself with present In order to maintain higher competitive efficiency there should be continuous product planning and market improvement. ACC cement producer and their dealers in Kadur town may consider the preference analysis in the report and

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suggestions Annexure

given

in

the

report

for

achieving

higher

standards of marketing performance in the future.

CONSUMER QUESTIONNAIRES

I am a student of final year BBM, Govt. First Grade College, Shimoga. As apart of my BBM course. I have selected MARKETING OF ACC CEMENTS A case study of Shabareesh
agencies, Shivamogga, kindly fill it up the questionnaire and give

suggestion for the study. The information supplied by you will be kept conditional and will be used for only academic purposes Your Sincerely PARAMESHWARAPPA H.S

CONSUMER QUESTIONNAIRES 1. Name 2. Address 3. Occupation : : :

4. Annual Income: a) Below 10,000 [ ] ] b) 10,000-15,000 [

97

c) 15,000-25,000 [ ]

d) Above 25,000 [

98

5. Have you ever purchase cement? a) Yes [ ] b) No [ ]

6. Which brand of cement do you purchase? a) A.C.C. c) Raashi [ ] [ ] b) Indian Cement [ ] d) Others [ ]

7. If you purchase A.C.C. what is your opinion? 1. Quality a) Better b) Good 2. Price a) High b) Low 3. Demand a) Better b) Good [ ] 8. Where do you purchase cement? a) Shabareesh agencies c) Salamath Enterprises d) Sagar Traders [ ] [ ] [ ] b) K.S.Narayana settee & sons [ ] [ ] [ c) Satisfactory [ ] ] d) Not bad [ ] [ ] c) Satisfactory [ ] d) Not bad [ ] [ ] [ ] c) Satisfactory [ ] d) Not bad [ ]

9. If you purchase in Shabareesh agencies, how do you come to know about the Shabareesh agencies?

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a) Friends b) Dealers

[ ] [ ]

c) Advertisement d) Contractors

[ ] [ ]

10. What are the factors which have influenced to buy ACC cement? a) Price [ ] c) Brand Image [ ] b) Quality [ ] 11. Do you get any facilities? a) Yes [ ] b) No [ ] d) Door Delivery [ ]

12. What is your opinion about regarding the regularity supply from Sri Shabareesh agencies a) Regular c) Not bad [ ] [ ] b) Irregular [ ]

13. Will you recommend ACC cements to others? a) Yes [ ] b) No [ ]

14. Are you satisfied with the service offered by the dealers? a) Yes 15. Any suggestions: -------------------Date: Place: Signature [ ] b) No [ ]

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BIBLIOGRAPHY

Marketing Management Marketing Management Marketing and Salesmanship News papers

By: Sherleker By: Philep Kottler By: B.S Raman Business Line Times of India

www.google.com www.accindia.com

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