Professional Documents
Culture Documents
Submitted By
CHRIS JOSE
(Reg No. 121115)
CERTIFICATE
This is to certify that the report on ORGANIZATION STUDY AT
ACC LIMITED-MADUKKARAI CEMENT WORKS, COIMBATORE, submitted
to Mahatma Gandhi University in partial fulfillment of the requirements for the award of
the degree of Master of Business Administration is a record of the original work done by
Mr. Chris Jose (Reg No: 121115) during the period of his study in the School of
Management and Business Studies, Priyadarshini Hills, Kottayam under my supervision
and guidance and the report or any part thereof has not been submitted elsewhere for any
other degree, diploma or other similar title of any other University.
Place:
Date:
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Dr. K. Sreeranganadhan
DIRECTOR
DECLARATION
I,
Chris
Jose,
hereby
declare
that
this
Report
on
- Chris Jose
Place:
Date:
Email: meandkrz@yahoo.co.in
Mob: 9496333809
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ACKNOWLEDGEMENT
The success that has been accomplished in my project would not have
been possible without the timely help and guidance rendered to me by many people. This
study became possible through the wholehearted co-operation of many persons and well
wishers.
I am grateful to Dr. K. Sreeranganathan, Director, School Of Management and Business
Studies, Kottayam for permitting me to take up this report work on Organization Study.
I am grateful to Dr. Saji M Abraham, Faculty co-ordinator, School Of Management and
Business Studies, Kottayam for all the provision made available to me.
I express my deep sense of gratitude to Shri R. Rajendrakumar sir (Manager HR), Mrs.
Padma (Manager HR), Shri Maheshkumar Sir, (Assistant Manager HR) Ms. Neha Guptha
(Quality control department), Ms. Nithra Yogi (AFR laboratory), Mr. Husain (Deputy
Manager Procurement department) of M/s ACC Limited-Madukkarai Cement Works,
Coimbatore and Shri Ninan Thayi sir (Manager Logistics), Mr. S.N. Vijayakumaran
Nair (Sales Head), Mr. Prasad Parsewar (Dy. Manager Marketing) Mr. Jaxen K.J
(Manager special projects) of M/s ACC Limited Sales unit, Edappally, Cochin for
kind co-operation and assistance extended during my report work on Organization Study.
I extend my sincere thanks to the Officials of the College Office and Library for
providing the necessary facilities for completing this work.
I am also thankful to my family and friends who supported me throughout the project
work. I will be failing in my duty if I do not acknowledge the deep debt of gratitude I
owe to the authors whose writings have provided an insight to the intricacies of the
subject.
- Chris Jose
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ABSTRACT
Organization study is usually conducted in a well structured and reputed
organization.
understand and learn the actual structure and working of each and every department of an
organization. The main purpose of the study is to observe, analyze and interpret ate the
functions and procedures of each and every department of the selected organization.
From the study conducted in ACC Limited, Madukkarai Cement Works a basic idea of
functioning of various departments of the company has got. Hence the organization
study conducted in ACC Limited, helped to a large extent to experience the real work life
situation in an organization. Cement is a binder, a substance which sets and hardens
independently, and can bind other material together. The working of the cement plant has
been studied in depth with the history of the plant, sources of raw materials, production
of cement, functioning of various departments adopted.
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CONTENTS
SL No.
CHAPTER
TITLE
PAGE
No.
CHAPTER--I
INTRODUCTION
CHAPTER--II
AN OUTLOOK OF--TYPE
OF INDUSTRY
10
CHAPTER--III
COMPANY-- PROFILE
22
DEPARTMENTAL
ANALYSIS* Production department
* Quality control department
* Finance department
* HRM department
* ARF department
* Procurement department
* General stores department
* Environment department
* CSR department
* Maintenance department
* System department
* Marketing department
* Internal audit section
45
48
62
78
91
112
119
122
129
136
140
147
152
166
CHAPTER--IV
CHAPTER--V
SWOT--ANALYSIS
168
CHAPTER--VI
EVALUATION AND
SUGGESTIONS
174
CHAPTER--VII
LEARNING EXPERIENCE
177
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CHAPTER--VIII
CONCLUSION &
BIBLIOGRAPHY
CHAPTER
INTRODUCTION
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179
ORGANIZATION STUDY AT
ACC LIMITED, MADUKKARAI CEMENT WORKS
INTRODUCTION
Organization Study helps to convert the theoretical knowledge and
practical knowledge into experienced one. An organization is a social unit of people,
systematically structured and managed to meet a need or to pursue collective goals on a
continuing basis. Organizational study conducted by the School of Management and
Business Studies is a training program that helps management students gain knowledge
and practical working conditions of an organization. The purpose of training program is
to have an exposure to the real life situations relevant to business areas and strengthen the
conceptual knowledge gained from the industry.
Organization study is usually conducted in a well structured and reputed organization.
The basic objective of conducting organization study is simply to understand and learn
the actual structure and working of each and every department of an organization. The
main purpose of the study is to observe, analyze and interpret ate the functions and
procedures of each and every department of the selected organization.
From the study conducted in ACC Limited, Madukkarai Cement Works a basic idea of
functioning of various departments of the company has got. Hence the organization
study conducted in ACC Limited, helped to a large extent to experience the real work life
situation in an organization.
It helped to view and analyze the functioning of various departments and also helped to
view the decision making and implementation strategies in an organization.
SOURCES OF INFORMATION
Primary data were collected through the personal visits and interview with the staff and
executives of various departments of ACC Limited, Madukkarai Cement Works.
Secondary data were received from the Annual Report and Magazines of the company
and from the website of the company.
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CHAPTER II
AN OUTLOOK OF
TYPE OF INDUSTRY
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An Outlook of
INVENTION OF CEMENT
Ever since civilizations first started to build, the world has sought a man made bonding
material that would bind stones into a solid, formed mass. During the Paleolithic Age,
men used to enjoy adequate shelter provided by nature. The Bronze Age witnessed the
use of building materials from a clay based mixture and air hardening lime. The
Egyptians advanced to the discovery of lime and gypsum mortar as a binding agent for
building such structures as the Pyramids. The Greeks made further improvements and
finally the Romans developed cement that produced structures of remarkable durability
(Cement Association of Canada 2006). The secret of Roman success in making cement
was traced to the mixing of slaked lime with Pozzolana, a volcanic ash from Mount
Vesuvius. This process produced cement capable of hardening under water. During the
Middle Ages this art was somehow lost. In the 18th century, big efforts started in Europe
to understand why some limes have hydraulic properties (Cimenterie Nationale 2007).
John Smeaton often referred to as father of civil engineering in England concentrated
his work in this field and made the first modern concrete by adding pebbles as a coarse
aggregate and mixing powered brick into the cement in 1759. A number of discoveries
followed. It was in 1817 that Louis Vicat conducted work on the hydraulic nature of the
lime-volcanic ash mixture. He was the first person to accurately determine the
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The problem of supply outstripping demand was significant in early period of the
industry. Problem of disposal of cement was aggravated by the prejudice with which
indigenous cement was regarded. This was followed by a price war between the
producers where they resorted to cutting down of prices and selling at below production
cost. This situation forced many companies into liquidation.
It was then when the government of India intervened into the market and referred the
cement industry to the Tariff Board. The board recommended protection by government
and cooperation among existing cement units. All these events resulted in formation of
Indian Cement Manufacturers Association in 1925 whose main function was to regulate
prices in the industry. In 1927, Concrete Association of India was formed whose two
main objectives were to educate public about the use of cement and to play an active role
in popularizing Indian cement. The next step in the direction of rescuing cement industry
was the formation of Cement Marketing Company of India Limited in 1930 to promote
and control the sale and distribution of cement at regulated prices.
After all these initiatives, the sales increased along with more plants. In 1936, eleven
companies, except Sone Valley Portland Cement Company Limited, merged to form
Associated Cement Company Limited (ACC). In 1937, Dalmiya Jain Group set up five
factories with installed capacity of 575000 tonnes and ACC added four more plants. With
all these expansions, price war again started off which resulted into a significant decrease
in prices. But in the post world war period, setting up of Department of Planning and
independence of the country provided fresh impetus to the industry.
The price and distribution control system on cement, implemented in 1956, aimed at
ensuring fair prices to producers and consumers all over the country, thus reducing
regional imbalances, and at reaching self-sufficiency within a short time period. Although
due to slow growth in capacity expansion and rising cost in the industry, the government
had to increase the fixed price several times. However, these price increases as well as
financial incentives to enhance investment, showed little effect on the industry. In spite of
the fact that government exercised no control over the Indian cement industry all through
the Third Five Year Plan (1961-1967), growth was low due to inadequate retention price
and lack of adequate financial resources to the existing companies.
2011
21.37
2010
20.83
Change %
2.6
21.52
21.01
2.4
8027.19
32.3%
7282.87
25.5%
10.2
Domestic Consumption
Year on-Year Growth(%)
2010-11
178
8.4
Cement production during April to January 2009-10 was 130.67 million tones as
compared to 115.52 million tones during the same period for the year 2008-09.
Despatches were estimated at 129.97 million tones during April to January 2009-10
whereas during the same period for the year 2008-09, it stood at 115.07 million tones.
Description
Cement Production
Cement Despatches
2010-11
2009-10
(AprilJanuary) in MT
130.67
115.52
129.97
115.07
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Capacity (M.t.)
Production (M.t.)
Capacity Utilization
(%)
3.28
2.20
67
5.02
9.30
12.00
19.76
22.58
42.00
61.37
105.26
145.99
177.83
4.60
7.97
10.97
14.66
19.42
32.13
45.42
76.22
106.90
161.66
92
86
91
74
86
72
74
72
73
91
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REGIONAL CONCENTRATION
Cement, being a bulk commodity, is freight intensive and transporting cement over long
distances can prove to be uneconomical. This has resulted in cement being largely a
regional play with the industry divided into five main regions, viz., North, South, West,
East and the Central region.
In terms of capacity historically, the southern region has always dominated the industry
and is excess in capacity owing to the availability of limestone, but the western and
northern regions are the most lucrative markets. East has most of the consumption of
cement as of now due to growing infrastructure. When we look at the evolution of the
industry, it can be seen that distribution of capacities of cement in India has now been
more balanced thus reducing the concentration in the southern region of the country.
In the Northern region, the major consumer is Uttar Pradesh with a highest growth rate of
31%. In the Eastern region, the major consumer is West Bengal, but the highest growth
rate of 38% has been achieved by North Eastern states. In the Western region, although
Madhya Pradesh is the highest producer of cement, the total consumption is highest in
Maharashtra with a consumption of 12.29 million tones. In the Southern region, while the
highest consumption takes place in Tamil Nadu followed by Andhra Pradesh, Karnataka
and Kerala, the growth rate in consumption has increased by 21% in Andhra Pradesh,
17% in Kerala, 14% and 11% in Karnataka and Tamil Nadu respectively.
In FY09, all the regions except the Western and the Northern region have outperformed
the industry in consumption growth. The Eastern region continued its buoyant
performance and registered the highest cement consumption growth of 11.3%.The
Southern and Central regions also reported impressive double-digit growth of 10.4% in
cement consumption. But, the Northern region has registered the lowest growth in the
cement demand on yoy basis. Comparatively, poor demand growth registered by the
Western region was on account of high base of the last year and also slightly subdued
demand.
TECHNOLOGY UP-GRADATION
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Portland Blast
Furnace Slag
Cement (PBFS)
Ordinary
Portland
Cement (OPC)
Portland
Pozzolana
Cement (PPC)
Rapid Hardening
Portland Cement
White Cement
The basic raw components of manufacturing the various type of cement are as
follows-
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Limestone
Silica
Raw
Components
Iron Oxide
Aluminum
Oxide
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The following table shows the position of the major cement industries in Indian cement
industry:
Overall Rankings and Scores of Cement Firms
Rank
Firm
Score
Ambuja Cements Ltd.
1
68.77
Grasim Industries
2
61.99
ACC LTD.
3
60.72
Ultratech Cement Ltd.
4
60.24
India Cements Ltd.
5
54.73
Prism Cement Ltd.
6
53.41
Madras Cements Ltd.
7
52.28
Birla Corporation Ltd.
8
48.14
Industry Average
45.45
Dalmia Cement ( Bharat)
9
45.15
Ltd.
Shree Cement Ltd.
10
43.75
JK Cement Ltd.
11
37.17
Chettinad Cement
12
34.54
Corporation Ltd.
Century Textiles & Inds.
13
31.77
Ltd.
Sanghi Industries Ltd.
14
31.68
J K Lakshmi Cement Ltd.
15
31.32
Binani Cement Ltd
16
31.08
O C L India Ltd.
17
25.91
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CHAPTER
COMPANY
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III
PROFILE
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HISTORY
ACC CEMENT has an interesting story - one that inspired a book.
ACC was formed in 1936 when ten existing cement companies came together under one
umbrella in a historic merger - the country's first notable merger at a time when the term
mergers and acquisitions was not even coined. The history of ACC spans a wide canvas
beginning with the lonely struggle of its pioneer F E Dinshaw and other Indian
entrepreneurs like him who founded the Indian cement industry. Their efforts to face
competition for survival in a small but aggressive market mingled with the stirring of a
country's nationalist pride that touched all walks of life - including trade, commerce and
business.
The first success came in a move towards cooperation in the country's young cement
industry and culminated in the historic merger of ten companies to form a cement giant.
These companies belonged to four prominent business groups - Tatas, Khataus, Killick
Nixon and F E Dinshaw groups. ACC was formally established on August 1, 1936.
Sadly, F E Dinshaw, the man recognized as the founder of ACC, died in January 1936;
just months before his dream could be realized.
OBJECTIVES OF COMPANY
1. To ensure a steady growth of business by strengthening the companys position in
its core business of cement.
2. To maintain the high quality of the companys products and services and ensure
its supplying at fair prices.
3. To ensure welfare of companys employees.
4. To be trusted and ethical organization.
5. To strive continuously and maintain the leadership of the cement industry through
selective acquisition, modernization expansion and establishments of a wide and
efficient marketing network.
6. To ensure environmental protection and well being of the community.
POLICY OF COMPANY
ACC has an effective Quality Policy System
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ORGANIZATION STRUCTURE
ACCs organization structure was revised in 2006. Added thrust was given to sustainable
development with the creation of separate cells at the corporate office and plants to
coordinate activities relating to waste management, alternate fuels and raw materials,
corporate social responsibility and occupational health and safety. All these were placed
under the supervision of the Managing Director.
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BOARD OF DIRECTORS
MANAGING DIRECTOR
REGIONAL HEADS
BUSINESS HEAD
(East Region)
BUSINESS
HEAD
(South Region)
BUSINESS
HEAD
(North Region)
Production
Manger
BUSINESS HEAD
(West Region)
HR Manger
Finance Manger
Marketing
Manger
AFR Manger
Procurement
Manger
Stores
Manger
CSR Coordinator
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BOARD OF DIRECTORS
Mr. N. S. Sekhsaria
Chairman
Mr. Paul Hugentobler
Deputy Chairman
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ORDINARY
PORTLAND
CEMENT
BLENDED
CEMENT
PORTLAND
SLAG CEMENT
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BLENDED CEMENT
1. Fly-ash based Portland Pozzolana Cement
This is special blended cement, produced by inter-grinding higher strength
ordinary Portland cement clinker with high quality processed fly-ash based on
norms set by the companys R&D division. This unique, value-added product has
hydraulic binding properties not found in ordinary cements. It is available in
specially designed 50-kg bags.
ACC Fly-ash based PPC is made by intergrading high strength clinker with
specially processed fly ash. This imparts a greater degree of fineness to ACC Flyash based PPC Cement, improved workability properties while mixing, and makes
concrete more corrosion resistant and impermeable. All of this makes for better
long-term strength and improved corrosion resistance and therefore, greater life
for your constructions. ACC Fly-ash based PPC is an eco-friendly cement.
In concrete made from ordinary cements, moisture reacts with calcium
bicarbonate, which leaches out of the concrete, leaving pores that reduce its
strength. ACC Fly-ash based PPC has ingredients which react with calcium
hydroxide to form CSH get, to provide additional strength, which actually makes
the concrete grow in strength over the years. It also produces less heat of
hydration and offers greater resistance to the attack of aggressive water than
normal Portland cement.
ACC Fly-ash based PPC easily replaced OPC and provides additional advantages
for practically all types of construction application-commercial, residential,
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PLANTS
Bargarh
Chaibasa
Chanda
Damodhar
Gagal
Jamul
Kymore
Kudithini
Lakheri
Madukkarai
Sindri
Wadi
New Wadi Plant
Thondebhavi
Tikaria
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2009
2010
2011
2012
2013
Market Share
Competitiveness
Organization
Corporate
Citizenship
Bottom Line
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ACC - MILESTONES
1936
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
1947
1952
1955
Sindri cement works used the waste product calcium carbonate sludge from
fertilizer factory at Sindri.
1956
1957
1957
Katni Refractories
1961
Blast furnace slag from TISCO used at the Chaibasa Unit to manufacture
Portland Slag Cement for the first time in India.
1961
1961
1961
1962
1965
1965
1965
1968
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1971
1973
1977
ACC receives ASSOCHAM first national award for the year 1976 instituted
for outstanding performance in promoting rural and agricultural
development activities.
1978
1979
1982
1984
1987
1992
1993
1995
1998
1999
1999
Tata group sells 7.2% of its stake in ACC to Ambuja Cement Holdings Ltd,
a subsidiary of Gujarat Ambuja Cements Ltd. (GACL)
2000
Tata Group sells their remaining stake in ACC to the GACL group, who
with 14.45% now emerge as the single largest shareholder of ACC.
2001
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2003
2004
2004
2004
2004
2005
ACC receives the CFBP Jamnalal Bajaj Uchit Vyavahar Puraskar Certificate
of Merit 2004 from Council For Fair Business Practices.
2005
2005
2005
2006
2006
2006
Change of name to ACC Limited with effect from September 1, 2006 from
The Associated Cement Companies Limited.
2006
2006
New corporate brand identity and logo adopted from October 15, 2006
2006
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2007
2008
Ready mixed concrete business hived off to a new subsidiary called ACC
Concrete Limited.
2008
2008
2008
ACC wins CNBC-TV18 India Business Leader Award in the category India
Corporate Citizen of the year 2008
2008
2009
2009
2009
2010
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
2010
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
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ACC AWARDS
ACC was the first recipient of ASSOCHAMs first ever National Award for outstanding
performance in promoting rural and agricultural development activities in 1976. Decades
later, PHD Chamber of Commerce and Industry selected ACC as winner of its Good
Corporate Citizen Award for the year 2002. Over the years, there have been many
awards and felicitations for achievements in Rural and community development, Safety,
Health, Tree plantation, A forestation, Clean mining, Environment awareness and
protection.
Awards & Accolades
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FIMI National Award for valuable contribution in Mining activities from the
Federation of Indian Mineral Industry under the Ministry of Coal.
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ACC wins Dun & Bradstreet Rolta Corporate Award 2010 - leader in Cement
category.
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CHAPTER
IV
DEPARTMENTAL ANALYSIS
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DEPARTMENTAL ANALYSIS
The brand ACC enjoys a high level of equity in the Indian market. ACCs brand equity
was found to be the strongest among its key competitors. ACC is a brand with meaning
not just to customers but to other stakeholders such as shareholders, employees and
vendors.
The true index of ACCs greatness is not only its turnover, not only its quantum of profits
but its well defined Organization Structure- backed by a systematic and well organized
departments.
ACC consists of a set of various departments backed by a loyal and dedicated workforce
and other resources which lays down the foundation of building a strong, passionate and
confident organization i.e. ACC.
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DEPARTMENTAL ANALYSIS
PRODUCTION DEPTT.
FINANCE DEPTT.
HRM DEPTT.
AFR DEPTT.
PROCUREMENT DEPTT.
GENERAL STORES DEPTT.
ENVIRONMENT DEPTT.
CSR DEPTT.
MAINTAINANCE DEPTT.
SYSTEM DEPTT.
MARKETING DEPTT.
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Time Keeping
Deptt.
Safety Deptt.
Security Deptt.
PRODUCTION DEPARTMENT
Production Department is considered as the heart of an organization. It is an area of work
where the core products of an organization take its physical form.
ACC have a well structured as systematic Production Department which is engaged in the
process of cement and concrete production.
The Production Department of ACC concentrate on 4S system of management, they are
as follows:
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PLANT LAYOUT
Map key
00. Limestone Quarry and Crushing plant
01. Limestone Stockpile
02. Additives Hopper
03. Additives Storage
04. Raw Mill Building
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Plant lay out simply refers to the arrangements of the machines, equipments and other
physical facilities within the factory premises. ACC Plants usually follow Process
Layout i.e. similar machines are placed in one place (work area) according to the
operation or functions they perform.
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CRUSHER DEPARTMENT
BALL-MILL
DEPARTMENT
(HIGH -GRADE SLURRY)
RAW-MILL DEPARTMENT
(LOW- GRADE SLURRY)
FLOTATION DEPARTMENT
FILTERATION
DEPARTMENT
KILN
DEPARTMENT
CEMENT-MILL
DEPARTMENT
PACKING HOUSE
DEPARTMENT
DESPATCH
SECTION
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GENERAL MANAGER
PRODUCTION MANAGER
ASST. MANAGER
(PLANT)
WORKS
SUPERIDENT- I
WORKS
SUPERIDENT-III
WORKS
SUPERIDENT-II
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ASST. MANAGER
(QC)
ENGINEER (QC)--I
ENGINEER (QC)--II
PRODUCTION TURNOVER
ACC is a reputed and strong manufacturer of cement within the country.
ACC strive to retain their position as Indias foremost manufacturer of cement and
concrete with a countrywide bouquet of 16 modern cement factories that have a capacity
of 26 million tones per annum to be increased to 30 million tones by the end of 2010.
Hence overall ACCs annual production capacity is 26 million tones per annum. The
annual production capacity of ACC Madukkarai plant is 7.5 million tones per annum with
a semi-wet technology of manufacturing. Earlier at the starting stage its production
capacity was only 0.6 million tones per annum.
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DEPARTMENTAL FUNCTION
The functioning of Production Department of Madukkari Plant of ACC is somewhat
different from other plants of ACC. This is basically because the basic raw material
obtained from the mines of Madukkari plant is of low quality. Hence in order to increase
its quality up to the mark, Madukkarai plant practices the semi wet process along with
wet and dry process.
In other plants of ACC they use to follow wet process and dry process only but in
Madukkarai plant of ACC they undergo through wet process semi wet process dry
process.
The production department of Madukkarai plant is basically divided into various subdepartments. These sub-departments are known as Zones. Each zone of production
department have a zone name, owner (head of the sub-department). The following are
the various zones of production department----
ZONAL -- STRUCURE
ZONE
ZONEPEARL
ZONERUBY
ZONESAPPHIRE
ZONEDIAMOND
ZONEEMERALD
ZONECORAL
ZONEGARNET
AREA
MINING DEPARTMENT
CRUSHER DEPARTMENT
ADDITIVE STORAGE HOPPER
BALL-MILL DEPARTMENT
FLOTATION DEPARTMENT
RAW-MILL DEPARTMENT
MIXER-BASIN NO. 1 & 2
MIXER BASIN NO. 3 & 4
CENTRAL CONTROL ROOM
FILTERATION DEPARTMENT
KILN DEPARTMENT
CLINKER/GYPSUM STORAGE
COAL MILL BUILDING
CEMENT- MILL DEPARTMENT
CEMENT STORAGE SILO
PACKING HOUSE DEPARTMENT
DESPATCH SECTION
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Cumulative
January-April 2012
Cement Production 8.87 million tonnes
Cement Despatches 8.79 million tonnes
January-April 2011
Cement Production 8.28 million tonnes
Cement Despatches 8.27 million tonnes
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QUALITY POLICY
Customer satisfaction
ORGANIZATION CHART
The Quality Control Department of ACC is provided with adequate experienced and
competent personnel for carrying out the activities of department. The organizational
chart of the department is shown below:
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SMBS, Mahatma Gandhi University, Kottayam
MANAGER PRODUCTION
JR.ASST.ANALYST
GAUGERS
TESTERS
MATERIAL
HANDLING
SUPERVISOR
TESTING
SAMPLE
TESTING
SAMPLE
BOYS
BOYS
YARD
SUPERVISOR
HEOS
Quality Cells/Sections
Quality Control Department has four sections/cells. They are:
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SMBS, Mahatma Gandhi University, Kottayam
W/BRIDGE
TALLY CHECKER
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SMBS, Mahatma Gandhi University, Kottayam
Table (a)
Incoming Raw-Materials
Material
Parameter
Limestone, Walayar
Total Carbonate
Limestone, Madukkarai Total Carbonate
Bauxite
A12 03
Si 02
Iron Ore
Fe2 03
Laterite
A12 03
Si 02
Fly Ash
Combustibles
Specific
surface(M2/kg.)
Gypsum
Purity as Ca SO4 ,
2H2O
Chloride content
Coal (imported)
Ash content
Desired
72 76 %
74 80 %
35 45 %
10 15 %
60 95%
30 45 %
10 15 %
27%
Range
Acceptable
68% minimum
72% minimum
30% minimum
18% maximum
60% minimum
25% minimum
18% maximum
12% maximum
350 400
75 95 %
320 minimum
65% minimum
0.3 0.8
10 15%
1% maximum
20% maximum
In-coming Raw-materials
The raw-materials used in manufacturing of cement at Madukkarai Cement
Works are limestone, Bauxite/Laterite, (i.e. aluminia as silica ) , Iron ore, fly ash
and gypsum, coal/lignite is used as a fuel in pyroprocessing.
Limestone
Received from company own two captive mines through, Walayar Mines
& Madukkarai mines. ACC to mine programme, drilling is carried out on
deposit as the drill cutting samples are analyzed by Quality Control
Department for total carbonate content which gives an advance
information to the mines department on quality of limestone before it is
blasted.
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SMBS, Mahatma Gandhi University, Kottayam
Fly ash
Fly ash is used as a pozzolanic material in manufacture of Portland
pozzolana cement in cement mills procured from established sources.
Weekly average composite samples are tested for assessing to conformity
to IS:3812.
Coal/Lignite/Alterative Fuel
Presently imported coal from China is being used as a fuel for the
pyroproceesing stage. Material Management Division of Corporate Office
organizes procurement of imported coal. Coal received by rail or road and
the quality is monitored.
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SMBS, Mahatma Gandhi University, Kottayam
Parameters
Lime stone
Drill cut
TC
Bauxite / Laterite
Iron Ore
Gypsum
Frequence of
Sampling
As and when
received from
mines
Frequence of
testing
As and when
received from
mines
Moisture
A12 03
S1 02
Size
Full Chemical
Analysis
Daily receipts
source wise
Daily receipts
Daily receipts
source wise
Moisture
Fez 03
Daily receipts
source wise
Fortnightly
composite
sample
Daily receipts
Full chemical
analysis
Daily receipts
Source wise
Moisture
Purity
Chloride
Full chemical
analysis
Daily receipts
source wise
Daily receipts
Source wise
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SMBS, Mahatma Gandhi University, Kottayam
Fortnightly
composite
sample
Daily receipts
Fortnightly
composite
sample
Purpose of
testing
To access
quality of
limestone
before blast
To access
quality and
acceptance
Quality
Assurance
To access
quality and
acceptance
Quality
Assurance
To access
quality and
acceptance
Quality
Assurance
Specific
surface, LR,
CR, drying
shrinkage &
full chemical
analysis
Coal
Moisture,
proximate
analysis
including CV
Lignite/alternative Moisture ash
fuel
Daily receipts
Source wise
Weekly
composite
sample
Suitability for
cement
quality
Daily receipts
Ratewise
sample
To access
quality
Daily receipts
Dailywise
To access
quality.
The Quality Control Department forward test report for each lot of cement bags
received to Manager Commercial and to Packing House. Manager Commercial
decides the acceptance/rejection of lot and communicates to packing house
accordingly. Packing house ensures use of bags only from accepted lot.
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SMBS, Mahatma Gandhi University, Kottayam
Table (b)
In-process Materials
Material
Parameter
Desired
Flotation Rejects
High Grade Slurry
Filter cake
Fine coal kiln
Clinker
Residence on
72 Mesh
170 Mesh
Total Carbonate
Residence on 72 Mesh
Residence on 170Mesh
Moisture content
Total carbonate content
Residence on 72 Mesh
Residence on 170Mesh
Moisture content
Total carbonate content
Residence on 72 Mesh
Residence on 170Mesh
Moisture content
Ca O
Fez 03
A12 03
Moisture content
Moisture content
Residence on 72 mesh
170 mesh
Litre weight
Gram/ltr.
Free Ca O
A12 03
Fez 03
CaO
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SMBS, Mahatma Gandhi University, Kottayam
4.5 6%
25 30%
20 30%
1.5 3.0%
15 22%
32 34%
80 85%
2.5 4.5%
20 28%
30 38%
35 75%
2.8 3.2%
20 27%
32 35%
43 45%
2.5 3.2%
2.7 3.5%
13 17%
3 6%
0.5 - 5.5%
5 26%
108-1180
Range
Acceptable
6.5% maximum
35% maximum
35% maximum
4.0% maximum
25% maximum
35% maximum
78% minimum
5.0% maximum
30% maximum
40% maximum
40% minimum
3.5% maximum
32% maximum
36% maximum
43.5% min.
2% minimum
2.5% minimum
18% maximum
8% maximum
5.5% maximum
26% maximum
1000 Min.
In process materials
Crusher Department
The output of crusher department is limestone. The quality check is
carried out by samples collected from product belt conveyor.
Raw Mill Department
The input of Raw Mill department is crushed limestone, ground in raw
mills along with required quantity of corrective materials and water for
producing low grade slurry.
Quality Control function involved here check quality of low grade
slurry, its fineness and moisture content on the samples collected from
mill discharge as well as from low grade slurry silos.
The corrected slurry preparation takes place in mixer basins No. 1 & 2 by
releasing high grade and low grade slurry from silos in required
proportions. The corrected slurry is sampled from mixer basins and
checked for its quality, fineness and moisture content.
If parameters are found beyond set norms further correction is applied
which is followed by x-sampling and testing. On clearance from QC
Department the Raw Mill Dept. pump out the corrected slurry to mixer
basins 3 & 4 for feeding to the kiln.
Ball Mill and Flotation Department
The input of Ball Mill Dept. is crushed limestone which is grounded in
closed circuit ball mills. The quality control function involved in this
process is to check the quality and fineness of slurry which is the final
output from the ball mill and also the quality of enriched slurry which is
fed to thickener as quality of reject generated from the flotation process.
For purpose of quality control about 1 1 litre of slurry samples are
collected from following points:
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SMBS, Mahatma Gandhi University, Kottayam
Kiln Department
The corrected slurry in Mixer Basin 1 & 2 of raw mill department is
pumped to mixer basin no. 3&4 of Kiln Dept. where from it is fed to the
slurry filters. The quality control functions involved in this process are
given below:
Kiln feed
Corrected slurry available in mixer basin 3&4 which is ready for feeding
to the slurry filters is called kiln feed. It is sampled from point of
overflow from constant head tank located at the top of slurry filtration
plant. About 1 1 ltr. of sample is collected twice a shift and checked
for quality, moisture and fitness.
Filter cake
The slurry filter drums filter out the water from kiln feed and cake
produced is dislodged over the belt conveyors for feeding to the kiln
system. About kg. sample of cake is collected from common belt
conveyor once in a shift and tested for moisture content.
Fine Coal
Coal which is used as a fuel is finally ground in a mill for firing to the kiln
system. About kg. of fine coal sample is collected from discharge point
of screw conveyors for kiln once in a shift and tested for moisture, ash and
fineness.
Clinker
The output from Kiln system is clinker, which come out from cooler
discharge point. About 5 kg. sample is drawn every hour and part of
sample is sieved for litre weight determination and another part is kept
separately for preparation of daily average composite samples. The spot
clinker samples are also analyzed once in a shift for quality.
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SMBS, Mahatma Gandhi University, Kottayam
Cement Grinding
The clinker so produced is ground along with gypsum or gypsum and fly
ash for manufacture of OPC or PPC, as the case may be, in cement mills.
The QC function involves in this process are to check the fineness, setting
time and specific chemical parameters on periodic samples collected from
each mill separately. About 1 kg. sample is collected mill-wise hourly and
checked.
Grade Analysis
In this stage only grade test is also conducted the final product i.e. cement
undergoes physical test as per which a specific grade is fixed for each type
of cement. This grade act as a representative symbol of quality and
strength of final product in front of customer. Under this quality grade is
fixed by undergoing queering process.
Queering process is a process of keeping cement cake/concrete produced
in mold with water and sand in it in a certain pre-fixed proportion for a
period of 24 hours.
After period of 24 hours the quality control department will apply certain
level of pressure to the molded cement cake if it withstand pressure up to
stage of 16 mega Pascal then concrete is good otherwise bad in quality.
This is a case of fixing grade at base of one day test. There are other
criteria also:
1 day
3 days
7 days
28 days
16 mega Pascal
22 mega Pascal
30 mega Pascal
53 mega Pascal
Hence this test conform the quality and strength of final product in a
visible form to the ordinary consumers also.
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SMBS, Mahatma Gandhi University, Kottayam
Parameter
Desired
Cement
Range
Acceptable
Specific surface(m2/kg)
33 Grade OPC
43 Grade OPC
PPC
290 I 30
310 I 30
340 I 30
225 Min.
225 Min.
300 Min.
Residence on 45 Mesh
33 Grade OPC
43 Grade OPC
PPC
18 28%
18 28%
15 20%
30% Max.
30% Max.
25% Max.
1.7 2.7%
1.5 2.5%
3.0% Max.
3.0% Max.
Setting Times
OPC (33 & 43)
Initial
Final
30 Min.
80 140
130 220
30 Min.
600 Max.
90 160
150 240
30 Min.
600 Max.
16 M.Pa. Min.
23 M.Pa. Min.
16 M.Pa. Min.
33 M.Pa Min.
43 M.Pa Min.
33 M.Pa Min.
Setting Time-PPC
Initial
Final
Composite strength-3 days
OPC 33
OPC 43
PPC
Composite strength-28 day
OPC 33 grade
OPC 43 grade
PPC
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SMBS, Mahatma Gandhi University, Kottayam
Details of
sample
Cement for
each type
separately
Parameters to
Frequency of
be tested
sampling
Specific surface Hourly
Co O & SO3
Frequency of
Test
Twice in a
shift
Complete
chemical &
Physical Tests
as per BISs ST
Daily/Weekly.
Daily/Weekly
composite
sampling
Quality of this clinker will be separately evaluated and accordingly actions will be
taken for its usage for next process.
Necessary corrective/preventive actions shall be initiated to eliminate recurrence
of such instances.
b) Control of Non conforming product
The products which also not conform to specified requirement is identified and
controlled to prevent its unintended use on delivery.
The process of cement manufacture is not a batch process but continuous process
where control and corrective/preventive actions are taken continuously at each
unit operation stage and the monitoring of presence and quality parameters are
also continuously undertaken.
Where nonconformance is observed at any stage of manufacturing process then it
is communicated to concerned personnel for taking corrective/preventive actions
and rechecking is done for conformance.
If nonconformance is noticed for any parameter after the cement is ground and
stand in silos, the silo will be declared non-conforming by Manager Production
and the silo will be sealed.
Sr. Vice-President (CCO) inform, Manager Production responsible for identifying
the reason of non-conformance and notify concerned departments and decide
regarding re-categorize the material if conforming to their grades of cement or
decide reprocessing or disposal and recommend to Sr. Vice-President for final
decision on above.
Cement shall be re inspected as per quality requirements before allowed for
dispatch in case of reprocessing.
c) Continual Improvement
Continually improve the efficiency of quality management system pertains to
working of QC Department, it has framed a department objective, target and
action plan to achieve the said objectives and targets and the same are given
below:
Objectives
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SMBS, Mahatma Gandhi University, Kottayam
Action Plans
Parameter
Frequency
OPC-43 Grinding
PPC Grinding
OPC 43 Loading
PPC Loading
Specific Surface
Specific Surface
3 days compressive strength
3 days compressive strength
Daily Average
Daily Average
Daily Average
Daily Average
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SMBS, Mahatma Gandhi University, Kottayam
Table (d)
Corrective/Preventive Action
Parameter
Corrective action
Limestone TC low from Quality feedback given to
Walayar/Madukkarai
mines department shifting
of limestone available in
stock
Raw-materials (Bauxite, Acceptance/rejection as per
Loterite, Iron ore)
contractual terms. Supplier
is suitably advised to
improve the quality.
Lower JC of High grade Adjustment
in
magnet
slurry
dosage,
improvement in
limestone quality.
Deviation of chemical Block the low grade slurry
composition of loco grade silo and release only in
slurry from set norms.
small quantity to the mixer
basin 1&2.
Kiln feed slurry(mixer Required quantity of high
basin 1&2) Deviation of grade or low grade slurry is
chemical
composition released to mixer basin 1 or
from set norms.
2 to get the desired Kiln
feed composition.
Fine coal variation in ash Make suitable correction in
content
kiln feed quality.
Clinker-Ltr weight on Taken by Kiln dept.
lower side
Preventive action
Taken by concerned Mine
Deptt.
Suppliers potential is
established by issuing trial
order in beginning and
testing
samples
from
source of supply also.
Charges
in
magnet
proportion.
Preventive
action by mine dept. to
improve quality.
Make suitable changes in
the corrective materials
add them to raw-mills.
Ensuring required quantity
of low grade & high grade
slurry is released to mixer
basin 1&2.
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SMBS, Mahatma Gandhi University, Kottayam
FINANCE DEPARTMENT
The brand ACC enjoys a high level of equity in the Indian market. ACCs
brand equity was found to be the strongest among its key competitors. This brand enjoys
among the highest level of equity in the global cement market.
ACC is a brand with meaning not just to customers but to other stakeholders such as
shareholders, employees and vendors. The name invokes an assurance of quality and
trust.
ACC has registered consistent improvement in its financial and overall economic
performance. The companys operations are aligned to maximize shareholders value.
Profitability has increased appreciably in the last five years. Organic growth is preferred
as it is faster and enables overall economies of scale.
ACC is currently implementing expansion projects that will raise to cement capacity from
22.40 million tones in December 2007 to 30.40 million tones by the close of 2010.
Thus this shows that ACC has well designed Finance Department which deals with
economic and income and expenditure related activities of the company.
ORGANIZATION STRUCTURE
ACC has a well structured Finance Department consisting of competent and experienced
personnel resources. The following chart provides an idea of structure of Finance
Department
FINANACE MANAGER
ASST. FINANACE
MANAGER
Sr. Accounts
Officer
( Books-Section)
Accounts Officer
(Sales Accounts)
Accounts Officer
(Establishment)
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SMBS, Mahatma Gandhi University, Kottayam
Accounts Officer
(Cash Section)
Supdt. Accounts
Office Asst.
HIGHLIGHTS OF PERFORMANCE/EVENTS
Cement despatches were 23.68 million tonnes
during the year as compared to 21.17 million tonnes during 2010;
Consolidated income for the year under review was
Rs.10428 crore, an increase of 21% as compared to Rs.8619 crore in 2010;
Consolidated profit before tax increased in 2011 to
Rs.1505 crore against Rs.1415 crore in 2010;
Consolidated profit after tax was higher in 2011 at
Rs.1301 crore against Rs.1078 crore in 2010.
FINANCIAL PERFORMANCE OF ACC LTD
According to unaudited results of quarter 3, ACC Ltd has registered a net profit of
Rs.1675.766 million for the quarter ended September 30, 2011. This is substantially
higher than that of the same quarter last year when the company made a net profit of
Rs.1000.446 million. Total income of the firm has gone up to Rs. 23060.26 million for
the quarter ended September
30, 2011 and has shown a significant rise from
RS.17180.862 million which was posted during the same quarter one year back.
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SMBS, Mahatma Gandhi University, Kottayam
FINANCIAL PERFORMANCE
ACC has a well structured Finance Department. It basically deals with the process of
managing the financial structure and dealings of the company. It helps to build a strong
financial back ground and foundation for the growth of ACC and its subsidiaries.
The income statement and position statement helps to obtain an idea about the financial
performance of ACC. The following Tables briefly describe the financial performance of
ACC---
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SMBS, Mahatma Gandhi University, Kottayam
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SMBS, Mahatma Gandhi University, Kottayam
83
SMBS, Mahatma Gandhi University, Kottayam
FINANCIAL STRUCTURE
The above table gives an idea of the financial position and profit making capacity of the
company. Thus, from that a detailed study on financial structure of the company can be
conducted in the following manner.
a) Capital Structure
ACC has basically raised its capital by issue of capital shares to various sections
at a face value of Rs. 10 per share. Hence the following shows the capital
structure of ACC.
Rs.
Crore
AUTHORISED
22,50,00,000 Equity shares of Rs. 10 each
10,00,00,000 Preference share of Rs. 10
each
2010
Rs.
Crore
2009
Rs.
Crores
225.00
225.00
100.00
325.00
100.00
325.00
188.78
188.72
ISSUED
18,87,88,179(Prev.year-18,87,29,706)
Equity share of Rs. 10 each
SUBSCRIBED
18,77,40,292(Prev.year-18,76,81,819)
Equity Share of Rs. 10 each fully paid)
Add: 3,84,060(Prev.Year 3,84,060)
Equity share of Rs. 10 each
Forfeited : Amount paid
TOTAL
84
SMBS, Mahatma Gandhi University, Kottayam
187.74
187.68
0.20
187.94
187.94
0.20
187.88
187.88
85
SMBS, Mahatma Gandhi University, Kottayam
As at
31.12.2011
As at
31.12.2010
148.72
31.04
576.82
2539.98
87.23
6.74
39.04
43.75
77.38
10.52
567.88
4129.1
100.54
29.04
431.54
2179.37
78.62
6.08
29.67
19.65
69.21
10.72
491.72
3446.16
10.17
19.02
29.19
4158.29
3469.70
2156.21
23.54
23.54
3469.70
1602.86
Sch.
Rs. Crore
187.94
0.08
5,828.20
SOURCES OF FUNDS:
Shareholders Funds:
Share Capital
Share Application Money, pending allotment
Reserve and Surplus
Loan Funds
Secured Loans
Unsecured Loans
3
4
2011
Rs. Crore
2010
Rs. Crores
6,016.22
187.88
4,739.85
4;927.73
566.92
450.00
32.03
482.03
349.25
335.79
6,932.39
5,745.55
550.00
16.92
e) Dividend Paid
ACC use to pay adequate amount as dividend to its shareholders. In August 2009,
the company had paid an interim dividend of Rs. 10 per equity share, involving an
outgo (including the dividend distribution tax) of Rs. 219.60 crores. The
Directors of the company have decided to recommend a final dividend of Rs. 13
per equity share of Rs. 10 each. The total dividend for the year 2009 would
accordingly be Rs. 23 per equity share as against Rs. 20 per equity share for the
year ended December 31, 2008.
The total dividend outgo for the current fiscal would amount to Rs. 505.14 crores,
including dividend distribution tax of Rs. 73.38 crores, as against Rs. 439.12
crores, including dividend distribution tax of Rs. 63.79 crores in the previous
year.
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SMBS, Mahatma Gandhi University, Kottayam
DIVIIDEND ISSUED
Sch.
Interim Dividend
Proposed Dividend
Dividend Distribution Tax
Previous year dividend
Rs.
Crore
187.80
244.06
73.38
2011
Rs.
Crore
2010
Rs.
Crores
187.65
187.68
63.79
0.02
87
SMBS, Mahatma Gandhi University, Kottayam
(A)
1
(a)
(b)
(c )
(d)
(e)
2
(a)
(b)
(c )
(d)
(B)
1
(a)
(b)
(c )
(d)
(e)
Public Shareholding
Institutions
Mutual Funds/UTI
Financial Institutions/Banks
Central Govt./State Govt.(s)
Venture Capital Funds
Insurance Companies
(f)
(g)
(h)
2
(a)
(b)
88
SMBS, Mahatma Gandhi University, Kottayam
No. of
Shareholders
Total
No.of
Shares
Percentage
of Share
Capital
0
0
1
0
0
1
0
0
93888120
0
0
93888120
0
0
50.01
0
0
50.01
1
0
0
1
541000
0
0
541000
0.29
0
0
0.29
94429120
50.30
132
123
4
0
0
2.26
9.51
0.25
0
0
385
0
0
644
4236414
17856708
287815
0
0
3
34269005
0
0
56649942
18.25
0
0
30.17
1329
9730215
5.18
98615
21962894
11.70
126
3315233
1.77
Category of Shareholder
(c )
C)
No. of
Shareholders
89
SMBS, Mahatma Gandhi University, Kottayam
Total
No.of
Shares
Percentage
of Share
Capital
565
0.00
172
4
0
1976
385965
1130
0
743368
0.21
0.00
0
0.40
130
36
102390
407797
664785
36666294
0.22
0.22
19.53
103034
103036
93316236
187745356
49.70
100.00
0
103036
0
187745356
0
100.00
1
2
3
4
No. of
Shareholders
86191067
541000
SOURCES OF FINANCE
Financial Policy
Capital structure
Ratio analysis
Leverages
Depreciation policy]
Dividend Policy
Tax Payments
Budgets
Income statement
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SMBS, Mahatma Gandhi University, Kottayam
Total
No.of
Shares
86732067
Percentage
of Share
Capital
46.20
31681260
4984776
16.88
2.66
3067219
126465322
1.63
67.36
2011
2010
Rs.
Crore
2009
INCOME STATEMENT
Net Sales
Operating EBIDTA
Profit Before Tax
Profit After Tax
9,341
1,921
1,540
1,325
7,717
1,1812
1,461
1,120
8,027
2,643
2,294
1,607
7,283
1,899
1,737
1,213
BALANCE SHEET
Net worth
Borrowings
Net Fixed Assets
Current Assets
Current Liabilities
Capital Employed
7,192
511
6,643
3,618
3,664
8,221
6,469
254
6,645
2,753
3,746
7,355
6,016
567
6,315
2,294
3,152
6,932
4,928
482
5,073
2,760
2,766
5,746
SIGNIFICANT RATIOS
Operating EBIDTA/ Net Sales
Return on Capital Employed
Return on Net Worth
Current Ratio
Debts Equity Ratio
Price Earning Ratio
Dividend Yield Ratio
Net Worth per Share(Rs.)
Net Sales per Share(Rs.)
Basic Earnings per Share(Rs.)
20%
19%
18%
0.99
0.07
16.29
2%
385
28.00
70.59
23%
25%
17%
0.73
0.08
18.04
3%
345
30.50
59.66
33%
49%
27%
1
0
10
3%
320
428
85.6
26%
40%
25%
1
0.1
7.39
4%
263
388
64.63
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SMBS, Mahatma Gandhi University, Kottayam
2008
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SMBS, Mahatma Gandhi University, Kottayam
ORGANIZATION CHART
The Human Resource Department is provided with adequate experienced and competent
personnel for carrying out the activities of department. The organization chart of
department is shown below:
HR MANAGER
ASST. HR MANAGER
SENIOR HR
OFFICER
SENIOR HR
OFFICER
Junior Officer
Security
Junior Officer
Recruitment &
Training
Junior Officer
Safety
Junior Officer
Establishment
Section
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SMBS, Mahatma Gandhi University, Kottayam
Sr. Superident
Civil
Department
Sr. Superident
Time-Keeping
Department
Employees
ACC has a large workforce of about 9000 people comprising experts in various
disciplines assisted by a dedicated workforce of skilled persons. ACC employees,
referred to as the ACC Parivar , come from all parts of the country and
belonging to a variety of ethnic, cultural and religious backgrounds. ACC
employees display a strong sense of loyalty to the company and their special
skilled qualities as value-adding human capital are well known in the industry.
The work force of ACC is usually classified into two main categories on the basis
of skills and positions or status acquired by them. They are:
o Wage Board Employees
o Management staff
Wage Board Employees
Wage Board employees are those which are technical in nature. They
usually deals with production activities i.e. they are directly involved in
the production process.
Management Staff
Management Staff usually deals with managing activities. Management
staff are indirectly involved in or assist the production activities. They
occur higher position and are non-technical in nature. They require less
physical and technical skill and more intellectual skill i.e. creativity and
innovative skill.
The following tabular description gives a complete picture of ACCs
classification of employees.
A) On the basis of employees skill
The Wage Board Employees of ACC are further classified on the
basis of their skills and salary or wages received by them in the
following two categories:
1. Daily Paid
- Skilled employees
2. Monthly Paid - Semi-skilled employees
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Employees Classification
Daily paid Skill employees
Category
A
B
C
D
E
Skill Level
Skilled higher
Skilled upper
Skilled lower
Semi-skilled
Unskilled
Semi-skilled Grade
Wage Board Gr. VII
Wage Board Gr. VI
Wage Board Gr. V
Wage Board Gr. IV
Wage Board Gr. III
Wage Board Gr. II
Wage Board Gr. I
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CENTRAL RECRUITMENT
COMMITTEE (CRC)
SELECTION PROCESS
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Performance Appraisal
The Companys performance management system is in itself a benchmark that
provides ample opportunities and motivational incentives to employees so as to
reward and retain good talent within the Company. These incentives include:
a) Performance Linked Incentives
As per this an additional incentives in monetary or in fringe benefit form will
be provided to those employees who perform in an outstanding manner.
b) Good Work Awards
Awards were given to employees as a lot of appreciation for their innovative
and creative ideas etc.
c) Special Increments
Besides regular pay and other incentives certain other increments or additional
amount were given by the company to employees for accomplishment of
special task and also for motivating them.
d) Promotion & Transfer
After every three years the employees seniority list is prepared and a
committee is constituted to review the performance of the employees and
according to the performance, qualification and experience the employee is
promoted to the next cadre. After the promotion some employees are
transferred to another department to place them suitably according to their
promoted post and performance.
e) Best House-Keeping Works
As per this programme of Corporate Office of ACC, each plant of ACC will
be rewarded with points ranging from 1 to 5 (maximum point). Under this,
points are awarded on the basis of the cleanness and eco-friendliness of each
plant. The plant which is most clean that will be rewarded with 5 points or on
the basis of cleanness any point between 1 to 5. For each point each worker
of the plant will be awarded with Rs. 90 per point.
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Letter of Appreciation
Nomination to external training programmes in India and Abroad.
Public felicitation and appreciation.
Best employee/employees of the month awards
Training the trainer facilitation.
Welfare facilities
Employees welfare receives prime attention at ACC. They have several schemes
for general welfare of the employees and their families. These cover:Housing facilities.
At ACCs cement plants and factories, employees are provided furnished and
unfurnished accommodation based on their entitlements. At many locations, the
employees are given free electricity, free water supply and free bus facility for
nearby places and schools. These houses are well-maintained and periodically
upgraded.
Hospital facilities.
Liberal medical benefits are made available to employees and their family
members by way of reimbursements towards normal medical treatment,
domiciliary treatments and special sanctions for serious illness. Each of ACCs
townships has well-equipped health care centres with qualified medical staff and
facilities, ambulance, referrals and tie-ups with reputed hospitals for specialised
treatment. In addition, there are regular health checkups, camps and programmes.
School facilities:
ACC townships have excellent schools that are often the best in the district.
Education at these schools is subsidized for employees wards. ACC offer
attractive scholarship allowances for children studying at places away from their
parents, merit scholarships for outstanding children and financial assistance for
employees children to pursue higher professional education.
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Training Cell:
Training is imparted to take care of an individuals career development as well as
functional and skill enhancement. Competency and Development training inputs
include Skill and general performance enhancement, communication skills and
Career development. Functional training needs are identified and conducted by
functional departments while Corporate HR organizes competency and
developmental inputs.
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ACC longed several new programmes in order to strengthen its existing Human
Resources. Under this the following programmes has been introduced:
o Strategic Talent Management
A transparent and efficient system for managing talent has been
conceptualized and is under implementation. This new Strategic Talent
Management programme (STM) help to create a blueprint for
development of talent in the organization by introducing effective
measures to identify companywide talent, build adequate strength for
future needs through succession planning for critical positions while
creating a healthy balance between internal and external talent in the
organization.
o Special change Management initiatives for shop floor associates
ACC used to annually launch a number of transformation initiatives that
involve shop floor associates and was directed at developing greater team
working skills amongst them and overall manufacturing excellence.
o Innovate to Excel
This is a special flat form to encourage change and innovation at the work
place. Cross functional teams across various plans, sales units and
functional department are encouraged to work on an innovative
idea/project. The teams then compete at unit and regional levels and
finally the winning teams participate in a competitive presentation of their
project at the corporate level.
o Linguistic Development Programme
Under this programme each and every employee of ACC undergoes
training and development programme in various languages specially in
Hindi and English. Since ACC has a big pool of national and international
markets so in order to maintain and provide best services to customers
effective communication skill is necessary for each and every employee
of ACC.
o System Knowledge
ACC also provide basic and high level knowledge in computers in various
training centers of ACC basically to make its employees competent
enough in the technical world.
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The overall findings show significant job satisfaction at all levels as also
deep respect for the company, its performance management system and its
overall business performance.
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Trade Union
ACC has a strong and well designed trade union which always act in the interest
of employees and also employers. ACC Madukkarai plant also has a well
structured trade union and union office within the factory premises.
The trade union functioning in ACC Madukkarai Cement works is All India Trade
Union Congress (AITUC) which is functioning under the banner of Indian
National Trade Union Congress (INTUC).
The Secretary of Trade Union of Madukkarai plant is Shri N. Nanjappan. Trade
under his leadership is functioning in a efficient and effective manner. The main
focus area of Trade Union is :
a) Safeguarding interest / benefits of employees
b) Co-operating and Co-coordinating the Management for smooth functioning.
Functions
The basic functions of Time Keeping Deptt. are as follows:
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1. Attendance keeping
Time Keeping deptt. mainly deals with the process of maintaining the attendance of
each and every employees of ACC.
In order to maintain the attendance of the employees of ACC, the following methods
are adopted:
a) Time card system
Time Keeping Deptt. has a separate rack having various bins. Each bin consist of a
time card in the name of each employee of an organization. The employees going out
and coming in the factory premises should make entry in it. Usually time card system
is for wage board employees.
b) Identity Card Recorder System (ICR)
Time Keeping Department has 4 ICR systems inside the plant premises at the
entrance and 2 outside the plant i.e. in General Office. Under this ICR machine has 2
sections in and out. Each employee should show his identity card containing his
name and employee code no. in the ICR machine whenever he comes or goes outside
the company premises of the organization. Usually ICR Time Keeping system is for
Management Staff.
c) Register Maintenance
This system is usually for contract labour. Under this whenever each contract
employee goes outside or comes inside the plant they must make entry in contract
labour attendance register and should obtain a gate-pass from time office department.
Hence with the support of such system a proper and systematic attendance taking
system is maintained within the ACC.
2. Remuneration Policy and Calculation
Time keeping deptt. deals with formulation of remuneration policies and calculation
of remuneration of each and every employee of ACC and submit the report to HR
deptt. and from there distribution of remuneration takes place.
a) Remuneration Policy
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Basic Pay
The following is the list of basic pay of wage board employees:
Class of workers
A Grade
B Grade
C Grade
D Grade
E Grade
Grade VII
Grade VI
Grade V
Grade IV
Grade III
Grade II
Grade I
Tally Checker
Rate of wages
Maximum
4040
3580
3199
2893
2670
5090
4785
4480
4175
3870
3570
3270
3045
Minimum
2220
2180
2149
2123
2110
2290
2265
2240
2215
2190
2170
2150
2135
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Annual
increment
91
70
52.50
38.50
28
140
126
112
98
84
70
56
45.50
Other pays
The following is the list of other pays besides basic pay of employees (it is
common to all):
Other pays
D.A.
Bonus
HRA
CA
TPM
Night Shift Allowance
Washing Allowance
Periodical allowances
Educational allowance
Quarter Rent
Monthly Pay
7259.60
20% (Basic pay + DA)
125 (C-D-E), 135 (A-B)
950
151
12.5% (Basic Pay x No.of nights)
20
185
500
60
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Fringe benefits
The non-monetary benefits enjoyed by employees of ACC are as follows:
Medical benefits
LTC Allowances
Canteen Facility (Tea at 35 paisa, food at Rs. 1 )
c) Mode of Payment
The employees of ACC are paid in the following ways:
Monthly paid employees 1 day before the last day of every month
Daily paid people on 6th day of every week
Contract labours paid per day (Rs. 160 per day to male & Rs. 164 per day to
female)
The salary of employees are paid to them through bank. ACC has account in two
banks i.e. Canara Bank, Madukkarai & State Bank of India, Kunaimuthu.
It depends on employees choice that in which bank out of this two their individual
account should be opened.
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3. Register Maintenance
Time Keeping Department deals with maintenance of the following registers for
recordical evidences of future references and proof:
4. Shift Management
Time Keeping department keep records of shift of employees of ACC.
ACC plant works round the clock in various shifts. The following are shifts of
employees in ACC.
Shift Class
A Shift
B Shift
C Shift
Half Hour meal time for each shift
General Shift(For non-technical employees)
Meal Time
Shift Time
12 A.M. to 8.00 A.M.
8 A.M. to 16.00 P.M.
16.00 P.M. to 12.00 A.M.
7.30 A.M. to 16.30 P.M.
12 P.M. to 13 P.M.
Time Keeping department provides siren at end and beginning of each shift.
Safety Department
ACCs brand name is synonymous with cement and concrete. Hence ACC and its plants
come under hazardous plant categories. So as per the statutory requirements, there
should be one well structured and well equipped Safety Department with a Safety
Committee.
Some of the statutory requirements of Safety Department of a hazardous plant are as
follows:
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3. Safety Audits
Safety Audit should be conducted once in a month to find out any unsafe points
and to avoid unnecessary accidents.
Functions
The Basic function of Safety Department of ACC are as follows:
1.
2.
3.
Safety Audits
Safety Audits i.e. verification is conducted at departmental level under this
verification is done to assure that Safety Measures are followed by each and every
department as per safety guidelines prescribed by statue.
4.
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5.
6.
7.
Report Preparation
It is engaged in the process of report preparation. It has to report to Safety
Inspectors which comes as a representative of Govt. to inspect the safety
activities of the plant. If he feels any type of dissatisfaction then he can cancel
even the license of the plant.
Suraksha Bandhan
ACC takes care of their contract employees under the banner of Suraksha
Bandhan. Under this the contractor intents management plan implemented in
phased manner.
8.
Security Department
Security Department also comes under HR Department. It is an important department of
HR Department. It mainly deals with Security related issued etc. both inside and outside
the plant. Security Deptt assists the HR Deptt is security related matters and also helps to
keep recordical evidences regarding each incoming and outgoing resources.
Functions
The following are the basis functions of Security Department
ACC has embarked wholeheartedly on a trend setting path of promoting the use of
Alternate Fuel and Raw Materials. Hence ACC had introduced a separate department
known as AFR (Alternative Fuel and Raw Material) Department. The AFR team offers
total solutions for waste management including testing based on co-processing. This is an
environmentally sound technology to avert environment damage cost, threats to human
health and other risks and liabilities. It is a new concept for Indian industry.
AFR department mainly deals with the process of Co- processing approach
Co-processing refers to the use/disposal of waste materials in industrial processes as
alternative fuels and raw materials to recover energy and material value from them, if
any. Co-processing of hazardous wastes in existing cement kilns provides a simple,
sustainable, local and immediate solution to the problem of disposing hazardous wastes
without affecting the environment, and without huge investments. Co-processing is
indeed a more environmentally sustainable method of waste disposal as compared to the
conventional methods of land filling and incineration because it involves reduced
emissions and there is no resultant residue from it.
AFR POLICY
ACCs Vision for AFR Business is to be the most respectable service provider to the
waste generators in India. The company has an AFR Policy that governs its behavior and
operations in co-processing various kinds of wastes in cement kilns. In order to comply
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ORGANIZATION CHART
The AFR Department consists of efficient and highly skilled personnels enjoying
suitable and competent positions. The following is the organization chart of AFR
department of ACC Ltd.
AFR DIRECTOR
SUPPORT
FUNCTION
REGIONAL
BUSINESS
HEADS
REGIONAL
COODINATORS
REGIONAL
PLANT
COODINATORS
SUPPLY
CHAIN
MANGER- I
PLANT COORDINATOR
SUPPLY
CHAIN
MANAGER --II
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DEPARTMENTAL FUNCTION
AFR department usually deals with
a) Replacement of fuel
ACC has successfully demonstrated re-channeling the use of industrial wastes as fuel
in existing cement kilns. So ACC now extends co-processing services in the country
as a safe and environment friendly method for management of wastes to industry and
society. We are capable of accepting not only those wastes which have some raw
material or fuel value, but also other wastes which are difficult to handle and dispose.
All types of wastes can be effectively disposed off in this way without any harmful
emissions, due to the high temperature and long residence time of the material in
cement kilns. An efficient cement kiln can thus provide an environmentally sound
and cost-effective recovery or disposal option for most wastes including hazardous
and non-hazardous ones but excluding banned wastes. These banned wastes comprise
anatomical hospital wastes, asbestos containing wastes, bio-hazardous wastes,
electronic scrap, entire batteries, explosives, high concentration cyanide waste,
mineral acids, radioactive wastes and unsorted municipal garbage.
It also deals with
Reduction of Green House Gases (GHG) emissions
The usage of AFR in cement process does not lead to any additional emissions. This
fact is reinforced through the trial runs that have been conducted by third party
monitoring agency which demonstrates that all emissions in the kiln stacks including
the heavy metals, POPs, PCDDs and PCDFs are well within the norms prescribed by
CPCB for the incinerators. In fact, some of the emissions (such as NOx)\ were
reduced by disposing/using the wastes in the cement process. The overall CO2
emission also decreases. Thus, ACC is going a long way in promoting co-processing
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Identify the
Customer
Initiate
Regular
Usage
Customer
Interaction
Sample
Evaluation
Suggest
alternative
solution
Submit to
Authorities
Undertake Trial
Burn
Finalize usage
plan
Clearance from
authorities by AFR
India & customer
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Co-processing
agreement with
customer
Clinker Factor
ACC has been able to reduce the clinker factor to 67.58% by utilizing other
compatible industrial wastes like blast furnace slag and fly ash.
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Clinker factor %
Blast Furnace Slag
Consumption(Million
tones/annum)
Coal Fly Ash
Consumption(Million
tones/annum)
2011
67.58
1.86
2010
69.43
1.75
3.54
2.99
c) Testing facilities
ACC has ISO 17025 certified AFR testing laboratories at its Wadi, Madukkarai and
Kymore plants and at the Technical Support Services in Thane- near Mumbai, for
prompt and accurate determination of waste characteristics. They will be manned by
trained chemists. Over 600 samples from different industries have been tested so far.
Karlfischer
Ion specific electrode
Supra pure water analyser
Flesh point analyzer
Flame photometer analyzer
Microwave digesting
Gas chromatography (GC)
Bomb calorimeter
Proximate analyzer
Ultimate analyzer
Autolitrator
Moisture balance
Radioactive Dozimeter
Muflfurnace
Hot air oven
Inductive coupled plasma spectro-photometer(ICP)
Thus, ACC (with coordination of its AFR department) is going a long way in
promoting co-processing as an environmentally sustainable solution for the management
of hazardous and non hazardous wastes from the industries.
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PROCUREMENT DEPARTMENT
ACCs countrywide spread of cement plants consumes a wide spectrum of inputs
about 130,000 different items ranging from coal, gypsum, slag, packaging bags,
refractory products, steel, grinding media, lubricants, electrodes, cables, bearings, and
conveyor belts, spares of various mechanical, electrical and mining equipment, and
explosives and instrumentation.
Thus a team of professionals at Corporate, Region and Plant Level manages the
procurement function. The function is organized so as to derive maximum value for the
company through economies of scale from central pooling and procurement of some
inputs at the corporate level while meeting individual operational requirements at plant
level.
PROCUREMENT ORGANIZATION
The materials management and purchase processes were reorganized in 2006 as
the companys new Procurement function. The function underwent further change after
implementation of an SAP based Enterprise Resource Planning (ERP) system.
The procurement section of ACC comprises of a Central Procurement Team at the plant
level. It simply means that each plant of ACC has a separate centralized procurement
department which is linked to a Central Procurement team at the corporate office.
ORGANIZATION STRUCTURE
The structure of procurement department of ACC is as follows:
PURCHASE MANAGER
CLERK I
Receiving
Requisitions
CLERK II
Enquiry &
Quotations
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CLERK III
Order Processing
& Delivery made
Receiving of materials
Inspection of materials
All these functions are carried out by dividing the Central Procurement Department into
the following sub-sections:
Raw materials
This section mainly deals with procurement of raw materials as per requisition of
each section of production department.
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VENDOR MANAGEMENT
The vendor base is more than 19000 suppliers across the country, comprising reputed
manufacturers, usually the leading names of their particular industry segment who are
technically and financially sound and have the intrinsic capacity to supply material of
desired quality on time. Preference is given to applicants with ISO (Quality &
Environmental) certification. About half of the registered vendors who represent about 10
per cent of total purchase volume have been individually assessed based on quality
standards.
The new vendor registration system incorporates details of environment performance,
social responsibility initiatives and employment practices implemented by the vendor
applicants, but these parameters have not been formally inducted for evaluation and
selection. There are plans to widen the scope of the vendor registration and evaluation
system to incorporate specific prequalification criteria relating to environment
performance.
Care is taken to ascertain that vendors and contractors, who operate within the companys
premises, observe and conform to fair labour practices. The engagement of children and
adolescent labour is not permitted.
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CLERK
Sr.CLERK/CLERK
INDENTING
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TALLY
CHEKER/CLERK-WISE
DEPARTMENTAL FUNCTIONS
The main function of General Stores Department is to receive stores and spare items,
verification and storage of the same under conditions such that no damage or low takes
place.
The functions of Stores Department is as follows
INSPECTION
INSURANCE-- CLAIM
STORAGE
ISSUE
RECORD--KEEPING
CONTROL
VERIFICATION
CO-ORDINATION
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The bins are provided with identification nos. to facilitate easy retrieval of
materials.
For protection of materials in stores following safety measures are taken.
Acetylene gas, oil drums, rubber items are kept a distant places from each
other.
General stores personnel are also given training on first aid and fire
fighting.
e) Issue
All the materials received, stocked and issued by stores deptt. with correct
material specification and correct quantity in terms of no. and weight against
proper requisition. All critical items are marked only for specific equipment and
issues of these items are done only for specific equipment.
f) Record Keeping
Stores department also deals with the process of generating and maintaining
records for proper maintenance and control over inventory and for the purpose of
future verification.
General stores department of ACC and its plants use to maintain records of
inventory in a systematic and planned manner with the help of SAP system.
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Identification No.
1.
2.
MKCW/GS/QR/01
MKCW/GS/QR/02
Minimum
preservation
period
1 year
1 year
MKCW/GS/QR/03
MKCW/GS/QR/04
1 year
1 year
MKCW/GS/QR/05
1 year
MKCW/GS/QR/06
MKCW/GS/QR/07
1 year
1 year
MKCW/GS/QR/08
1 year
MKCW/GS/QR/09
MKCW/GS/QR/10
1 year
1 year
3.
4.
5.
6.
7.
8.
9.
10.
g) Control
Stores Department is mainly engaged in receiving and issuing process. The other
function of stores department is controlling of inventory. Controlling means
keeping a vigil on the discrepancies, abnormal consumptions, accumulation of
stocks, etc. and enforcing control measures. It mainly deals with inventory
control or inventory management. The following are some of the techniques used
by General Stores department for inventory control.
h) Verification
Stores department also deals with verification process. Under this the in charge of
stores department along with storekeeper conducts physical verification of
inventories in stores. It focuses on verification of bin card balances with physical
quantities in bin. This help to deduct the shortages and also help to analyze the
variation in physical stock and recorded stock.
Stores department hence use to carry out Perpetual Inventory System which helps
to conduct continuous verification of inventories in stores. Also stores
department undergoes a detailed verification process on a monthly basis.
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ENVIRONMENT DEPARTMENT
ACC has been a trendsetter in the industry in respect of its environment protection
practices. There is evidence to show that quarry rehabilitation, tree plantation,
afforestation, water management, pollution control and utilization of wastes were
practiced many decades ago.
The company installed pollution control equipment in its cement plants more than forty
years ago. Today each of ACC plants has state-of-the art pollution control systems
designed by the in-house pollution control equipment design team. These systems are
capable of keeping emissions well below the statutory levels. All plants of ACC conform
to ISO 14001 certification.
The Environment and Energy Conservation Cell was formed in September 2007, in all
plants of ACC including Madukkarai plant, with a clear road map to pursue emission and
energy reduction. Earlier these functions were organized differently. A large group of 70
environment engineers (including 11 environment engineers of Madukkarai plant) are
deployed across the company with separate teams for environment related R&D, design
and installation of equipment at the central level and separate engineers overseeing
maintenance and operation at each plant.
ORGANIZATION CHART OF ENVIRONMENT DEPARTMENT
The organization chart of environment department are as follows-DIRECTOR PLANT (HEAD)
MANAGER ENVIRONMENT
SENIOR
EXECUTIVE (E& I)
JUNIOR
EXECUTIVE
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ENVIRONMENT POLICY
1. Prevent pollution and minimize fugitive emission from all activities of
Madukkarai Cement Works.
2. Comply with all relevant legal and regulatory requirements.
3. Conserve key resources such as water and energy.
4. Minimize generation of solid waste and take appropriate action for reuse.
5. Continual improvement in Environmental Performance at Madukkarai Cement
Works.
DEPARTMENTAL FUNCTIONS
The main function or basic objectives of Environment Department are:
These are some of major functions of Environment Department of ACC cements. They
are discussed in details as follows:
Energy Resources
With rampant energy shortage in India, ACC is engaged in making regular
modifications in process and technology to adapt to best practices in energy
savings on the usage of conventional energy and fuel sources. This is mainly
because, cement manufacture is an energy intensive process consuming both
electrical and thermal energies.
The company introduced Captive Power Plants and Wind Power Plants
programme, basically to generate energy from natural sources i.e. wind etc. This
effort of ACC helped it economically and also helped the society to seek energy
from viable renewable and non-fossil fuel sources.
The company has 225 MW of Captive Power Generating capacity of which 184
MW is thermal while the remaining is mainly liquid fuel based.
ACC has constituted a renewable energy division within its Power Management
Group. The first major initiative was to establish a state of the art wind power
plant/project in Udayathur in Tirunelveli Dist., Tamil Nadu.
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929.51
105.06
1.50
95.12
6.53
0.02
0.02
0.003-0.015
Dust Control
ACC has installed dust emission control equipments. The company introduced its
own facility for retrofitting and upgradation of dust emission control equipments
in 1993 at its Thane complex in collaboration with Hamon Research Cottrell,
USA. This included a full fledged fluid dynamics laboratory, the first in the
Indian cement industry, for carrying out physical gas flow model studies for
different equipment. Over the years, most of the equipment were continuously
upgraded to meet local statutory emission norms. Apart from upgrading and
installing pollution control equipment for ACC, the division also took up
consultancy, supply and erection jobs for clients from various industries in India
and overseas. In fact ACC gained significant recognition for excellent services
rendered.
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Bag House
The term Bag House is applied to large filters containing a number of
tubular bags mounted in a usually rectangular casing. The dust laden air is
drawn through them by suction.
The Bag House is used to remove dusty particles from discharge of
different equipment such as cement mill, coal mill and kiln. In a Bag
House system discharge gas containing dusty particles is passed through a
series of bags made of strong fabrics
Greening
ACC has won several prizes and certificates of merit for its programmes
involving greening , afforestation, reclamation and rehabilitation, top soil
management, noise abatement and other visible measures such as tree plantation
and water management. ACC has proudly showcased its success with
reclamation of lands abandoned as mines and quarries. Some of these desolate
tracts have been transformed into green parks, orchards, forests and even a bird
sanctuary with a picturesque lake.
Some of plant of ACC have developed as much as 40% area for green belts as
compared to the statutory requirement of 30 per cent. Each cement plant has its
own success story of tree plantation etc.
Kymore has undertaken greening of the desolate Kaimur Hills-an
ambitious project where 1,50,000 trees are already planted with a survival
rate of more than 95 per cent. Elsewhere volunteers at Kymore have
planted a record 1,00,000 saplings in a single day.
At Gaggle in Himachal Pradesh, 1.1 million plants and saplings were
planted in waste lands.
Chaibasa distributes saplings to local people free of cost on Independence
Day. 1,50,000 trees have been planted over an area of 24.9 hectares.
In Chanda around 5000 trees are planted every year.
Fruit orchards and plantations flourish in Jamul, Katni and Gagal.
The total plantation undertaken across ACC is more than 3.3 million nos. of trees,
with an average survival rate of 85% and spread over an area of 10,000 acres in
mines, factories and residential townships.
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CSRHEAD CORPORATE
CELL
DEPUTY HEAD
PLANT HEADS
PLANT CSR
COORDINATOR
REGIONAL
HEADS
REGIONAL CSR
COORDINATOR
DEPARTMENTAL FUNCTION
CSR department performs a number of functions for the development of society and its
members. The main focus area of CSR department is under mentioned
Community Development
Ladies Club in ACC
Health Care Facility
Awareness Programmes
The new approach brings a sharp focus on capacity building and livelihood generation,
particularly for the youth and women. The main objective of this programme is to make
the community self-reliant.
LADIES CLUB
Every plant in ACC has traditionally had an informal association of ladies predominantly
for their social and recreational activities. These Clubs have been contributing by way of
organized voluntary work in the areas of school activities, literacy drives, health camps,
blood donation drives, donations, relief measures as well as empowerment programmes
for women. The Ladies Clubs participate in tree plantation campaigns and promote
cultural activities.
The programmes supported by these Ladies Club focus on hygiene, womens
empowerment through capacity building and livelihood generation, education and
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MAINTAINENCE DEPARTMENT
ACC has a strong and well structured maintenance team. All plants of
ACC have a separate maintenance department which provides all types of maintenance
services i.e. it act as a service department for the production department.
From the study conducted in Madukkarai plant of ACC the structure and functioning of
maintenance department became clear to some extent. The maintenance department in
Madukkarai plant mainly deals with preventive and corrective form of maintenance on a
regular basis. It also deals either predictive form of maintenance under certain
circumstances.
ORGANIZATION CHART
The maintenance department is provided with adequate experienced and competent
personnel for carrying out the activities of department. The organization chart of
maintenance department is shown below:
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CHIEF MANAGER
MECHANNICAL
HEAD PLANNER
CIVIL PLANNER
MECHANICAL
PLANNER
E&I PLANNER
PLANT
MAINTENANCE
EXECUTION
From the above structure of maintenance department it became clear that along with
Plant Execution cell it has the following cells (section) also:
Civil cell
Mechanical cell
Electrical and instrumental cell
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DEPARTMENTAL FUNCTION
Civil section of maintenance department is engaged in the following functions or
activities:
It performs the repair and renovation activities both inside and outside the plant
i.e. in quarters also.
It provides maintenance services in the plant like preventing or correcting the
leakage problems, water proofing etc.
It carries out the construction and masonry activities both inside and outside the
plant.
It carries out the general cleaning activities inside and outside the plant.
It helps the quality control department in stock taking of raw materials and
finished products.
It carries out a preventive activity of annual shut down along with coordination of
other sections of maintenance department and also other departments.
MECHANICAL CELL
This section of maintenance department mainly deals with the process of preventive and
corrective maintenance of mechanical section of the plant .The periodic and regular
maintenance procedure of machines and equipments both inside and outside plant is dealt
by this section of maintenance department.
FUNCTION
1. MECHANICAL PLANNER:
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DEPARTMENTAL FUNCTION
The following are the main functions of Electrical & Instrumentation section of
maintenance department:
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DEPARTMENTAL FUNCTION
Plant maintenance execution section of maintenance department mainly deals with the
following functions:
Reduction in Mean Time to Repair (MTTR).
o Ensuring the availability of spares
o Ensuring the availability of manpower required
o Ensuring the availability of skill level required.
PREVENTIVE CELL
This cell mainly deals with the process of providing maintenance in advance i.e. before
occurring actual break down of machinery or instruments etc.
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Plan
Orders
Reporting
Task list
It is a list of task which is to be performed in advance. It is usually prepared on the basis
of ratio of Preventive Maintenance Routine % to Plant Attainment % (PMR%/PA%).
Planning
Planning is a process of determination of future course of action. In this stage the way in
which the preventive task to be performed is prepared.
Orders
In this stage the orders of maintenance were received by various sections of maintenance
team and they have to execute those orders as per the task list and plan.
Reporting
It is the final stage in this each member should prepare a report showing the list of task
performed by each member of each maintenance section. It help to compare the task
actual performed and task planned.
CORRECTIVE CELL
It is a process of providing maintenance services after the actual breakdown or block
occurs.
It follows the following procedures:
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Orders Received
Corrective Job
Reporting
Notification
Under this stage when the breakdown occurs or when it is predictive then a notification is
issued by the concerned department facing the problem informing the maintenance
department.
Orders received
Under this the concerned section of maintenance cell gets orders mentioning the task to
be performed immediately.
Corrective job
Under this the section receiving the order start the execution of corrective steps required
to solve the problem.
Reporting
Under this final stage the task performed by the concerned section is reported in order to
compare the actual task to be performed the actual task completed.
Hence these are the structural form and mode of functioning of Maintenance department
of ACC and its plants.
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SYSTEM DEPARTMENT
ACC was among the first Indian companies to adopt automation of
information technology. They started computerizing their systems as early as 1968 - a
commitment to progress through the harnessing of relevant available technologies, a
practice that continues even today.
They have traveled a long way from their early days when they were using simple
keypunching machines. Significant improvements have been made in application systems
and infrastructure since then - from Batch processing to on-line systems, from IBM 1401
and Data General system to the latest Linux/UNIX and Windows 2003 based machines.
They have made timely transitions determined by available technologies and business
requirements.
ORGANIZTION CHART
The following chart represents the structure of system department of ACC---
SYSTEM MANAGER
ASST. MANAGER
SYSTEM PALNNER
SUB
PLANNER
FICO
SUBPLANNER
MM
SUBPLANNER
SD
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SUBPLANNER
PP
SUBPLANNER
PM
SUB
PLANNER
HR
IT INFRASTRUCTURE
IT in ACC is well placed to master future expansions of their core business. IT
Infrastructure of ACC is well designed with adequate automation systems.
IT infrastructure of ACC includes the following
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FUNCTIONAL AREAS
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Networking System
Being a large organization with a countrywide network of manufacturing, marketing and
R&D centers, ACC have invested in the creation of a comprehensive infrastructure that
allows free flow of information across the organization. This enables almost instant
communication between all levels in the organization. A hybrid WAN network connects
each of their 275 plants locations. A judicious mix of VSAT and VPN links ensure
adequate connectivity between these locations. Each manufacturing location has a well
designed LAN to meet its needs.
Security System
All departments of ACC has their own separate SAP ERP solution. A department can
access only its SAP package system i.e. it cant access the SAP system of any other
department for e.g.- HR department can not access the Finance departments SAP package
and vice versa. Each departments SAP system has been designed in such a way that no
other department of the organization can have an access on it.
Only the Production Planning section and the Plant Maintenance section can have a
access on the Material Managements SAP ERP system .
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The following problems have been noted after studying the Systems and IT department.
Legacy Network Support. Backbone network used by ACC is still the same,
which they used in 1993. They havent upgraded the network support from then,
which has started creating problems for them already. As MIS of the company is
improving day-by-day including more and more functionalities, the network has
already become very slow.
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MARKETING DEPARTMENT
ACCs brand name is synonymous with cement and enjoys a high level of
equity in the Indian market. ACCs brand name is maintained and developed by a well
designed marketing team. A range of ACCs cement s and blended cements is marketed
through a network of 19 Sales Units, 54 Area Offices, and 194 warehouses. This is
backed by a countrywide network of over 9000 dealer who, in turn, are assisted by their
sub-dealers.
ACCs marketing; sales and distribution processes are industry standards. Although we
take immense pride in having supplied some of Indias most admired projects, ACC id
essentially a peoples brand of cement with more than 80 per cent of sales, made
thorough 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 semiurban India. ACC cement enjoys an image of assuring consistency and of high quality
backed by in- house research and expertise.
ACC manufactures the various kinds of Portland Cement for general construction and
special applications. In addition to this , ACC offers two value added products namely,
Bulk Cement and Ready Mix Concrete.
POLICY
The following is the policy of marketing department of ACC on the basis of which they
carry out their functions
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VICE PRESIDENT
(BUSINESS HEAD)
REGIONAL MANAGER
(Eastern Region)
REGIONAL MANAGER
(Northern Region)
REGIONAL
MANAGER
(Western Region)
REGIONAL MANAGER
(Southern Region)
BRANCH
MANAGER
SALES
MANAGER
SALES
OFFICES
Kolkata
Asansol
Dehradun
Patna
Bhunaeshwar
Ranchi
Raipur
BRANCH
MANAGER
SALES
MANAGER
SALES
OFFICES
Bangalore
Cochin
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BRANCH
MANAGER
BRANCH
MANAGER
SALES
MANAGER
SALES
MANAGER
SALES
OFFICES
SALES
OFFICES
New Delhi
Chandigarh
Lucknow
Kanpur
Bhopal
Hubli
Mumbai
Pune
Sekendrabad
Nagpur
MAJOR MARKETS
Maharashtra
Punjab
Uttar Pradesh
Karnataka
West Bengal
From the above table the major markets of ACC in different regions have become clear
and also it become clear that central region (UP) is the strongest market of ACC enjoying
highest share of market in this region compared to other regions.
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Thus from the above table it become clear that Grasim group enjoys the maximum
number of shares in the market. Hence in terms of sales and marketing strategies Grasim
industries is the leader( top in the market) but when the overall performances in cement
industries is considered then Ambuja group is the market leader of cement industry.
The ware house and transportation is managed by Carrying and Forwarding agents
(CAF). In order to find the least cost in freight charges a software called OPTIMISER
is used in the logistics department. An optimized list of freight charges to various ware
houses in Kerala is listed in the table.
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ACC has two levels of advertisement team to manage and perform the advertisement
activities.
-National team
-State level sales unit team
The national team in cooperate office - Mumbai looks over the large scale advertisement
activities, all India level. i.e., in television, radio, news paper and other mass media. The
sales unit in states looks over the advertisement activities such as local outdoor
advertisement, building bus shelters, wall printing, and local television channels and
radio.
MARKETING INTELLIGENCE
ACC uses Retail Marketing Information System (RIMS) for its marketing activities.
There is one marketing intelligence officer for every district to prepare and analyze the
daily sales report.ACC is costly cement. Its well marketed because of its customer quality
and brand image.
SALES PROMOTION
ACC has adopted several sales promotion programs for its dealers. ACC Lakshya is
one among them. Its a loyalty program for the premium dealers and authorized dealers.
The dealers get points into their accounts as they purchase cement from ACC Limited. At
the end the dealers can redeem points for bikes, laptops, handy cams etc. After a fixed
period of time every dealer obtains some belts and thus they can add more points to their
account.
ACC is also providing several incentive schemes for dealers as they perform financial
transactions towards ACC at the earliest.
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SALES HEAD
CSS
INCHARGE
ACVERTISEMENT
AND BRANDING
INCHARGE
FINANCE
INCHARGE
LOGISTICS
INCHARGE
ADMIN
INCHAREGE
Thus as shown in the figure every sales unit has a sales head and all the sales/marketing
activities are performed under the sales head.
MARKETING MODEL
ACC sells the cement in the dealership mode and rarely in consignment mode. ACC
never sells products to the end user (Laye Buyer).
The marketing model is illustrated below:
ACC LIMITED
WHOLESAL E DEALER
(SUB
DEALER)*
RETAIL DEALER
END CUSTOMER
END CUSTOMER
* Three sub dealers [authorized dealers] Premium Dealer
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MANAGEING DIRETOR
DIRECTOR SALES
SALES HEAD
(SALES UNIT)
DISTRICT OFFICER
PDF (CONTRACT
WORKERS)
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9. Complaint Handling
Customer service personnel are responsible to attend to customer complaints.
There is a formal system in place for handling customer complaints at all sales
offices. These systems and documentation are regularly inspected by
representatives of the Bureau of Indian Standards. The regional head is
personally responsible to resolve individual complaints to their just and logical
end. Commercial complaints are resolved at the local level while complaints
related to application failures and quality are promptly referred to the head and
quality in charge at the supplying cement plant as well as to the quality
department at the corporate office. On receipt of a complaint, our
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certificates are issued to the needy customers by marketing office (ACC also
issue directly to customers on specified request).
Marketing offices keeps regular touch with customers directly or through
appointed dealers and get feedback from customers and any complaints/ queries
is attended and resolved. Quality control personnel go to the site for assisting
the marketing personnel in investigation.
They collect sample if available and prepare a report and submit to RMO and
Production Manger. These samples are tested at laboratory to evaluate any nonconformance of product and the genuinty of complaints.
Customer is compensated or material is replaced if test prove any nonconformance and then non-conformance is recorded for further references and
corrective/preventive actions to avoid reoccurrences of same.
COMPETITORS
ACCs brand equity was found to be one of the strongest brands in cement industry. ACC
has a number of competitors in the cement industry. The major competitors of ACC are
as follows
Domestic competitors
Major competitors-o Ambuja Cements Ltd.
o Ultratech Cements Ltd.
o Grasim Cements Ltd.
Other competitors
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JK Group
Shree Cements Ltd.
India Cements Ltd.
Jaypee Group
Madras Cemets Ltd.
Birla Corporation
Century cements Ltd.
Binani cements Ltd.
Dalmia cements Ltd.
Prism cements Ltd.
International competitors
o Holcim Group (Switzerland)
o Italcementi Group ( Italy)
o Heidelberg Cements (Germany)
o Lafarge India Pvt. Ltd. (France)
So these are some of the competitors of ACC.
ACC usually beliefs on a fair competition and hence it has formulated ten golden rules
of competence to make its sales force well equipped. It is as follows
1. Apply due diligence
2. Seek assistance
3. Report to our legal department
4. Maintain a firm standard towards our competition
5. Draft with care
6. Avoid business contacts with our competitor
7. Do not unduly restrict our dealer
8. Do not force our dealers into dealings
9. Do not unduly obstruct our competitors
10. Don not exploit a dominant position
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TECHNOLOGY ABSORBTION
The marketing department of ACC has a well structured Research and Development
(R&D) section. The marketing team of ACC always concentrate on adopting technical
advancements and developing quality oriented and technically upgraded products. This
R&D section of marketing team always helps in developing new technologically
advanced products the main functions of R&D Department is as follows
Capital
Recurring (Gross)
Total
Total R&D expenditure
Rs. Lakhs
37
325
362
0.05%
Rs. Lakhs
5561
4217
Thus the effective sales force of ACC helps to enhance the equity and strengthen its
marketing potentials through these initiatives.
Projects Risks
ACC is executing large CAPEX projects to set up new cement manufacturing facilities,
where the company is exposed to risks of timely completion and cost competitiveness.
ACC has initiated semi-turnkey projects approach to reduce the time and costs for
completion of large projects and has also restructured the project organization.
Compliance Risks
ACC is exposed to significant risks due to non-compliance with various statutes and
regulations including Competition Act. The company is mitigating these risks through
regular reviews of legal compliance, through internal as well as external compliance
audits and training to relevant employees. The company has set up the process to
mitigate the environmental compliance risks such as investments in pollution abatement
equipment, monitoring of ambient air quality, and construction of environmental labs.
People risks
Retaining the existing talent pool and attracting new manpower are major risks in this
respect. The company has initiated various measures such as rollout of strategic talent
management system and integration of learning activities in order to retain talent.
The above key risks, along with all other risks and their mitigation plans as well as
opportunities assessed by the Management, are built into the rolling business plans of the
company.
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CHAPTER V
SWOT-ANALYSIS
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SWOT-ANALYSIS
Some of such
Infrastructure Development
The Finance Minister Pranab Mukherjee in his Union Budget 2010 speech
gave due importance to the expansion of excellent quality of physical
infrastructure in the form of roads, airports, ports and railways to maintain
economic development. He proposed few initiatives which are estimated
to have a considerable impact on Infrastructure Sector in FY 2010-11.
Housing Sector Boom
Over the next five years, the numbers of households are expected to
increase at a CAGR of 2.3 per cent, against a population growth rate of
over 1.7 per cent. The growth in urban households will be higher than
rural households, shifting the rural-urban household ratio from 70:30 to
67:33. As the growth in households is higher than the population growth,
it will accelerate the demand for new houses.
Higher demand and greater affordability due to lower interest rates and tax
breaks is expected to trigger an unprecedented housing boom. The housing
finance industry has estimated a latent demand of 33 million houses and
forecasts a growth of 50 per cent per annum till 2010. With the housing
sector accounting for 50 per cent of the current cement demand, this boom
is expected to propel even higher cement demand.
Road Construction will boost demand
The Government has set the target of constructing 20 km. of national
highways on daily basis and to trigger these changes projects have been
undertaken via public private partnerships (PPPs). The Finance Ministry
increases the allotment of road transport to Rs. 19,894 crore against the
previous Rs. 17,520 crore for 2010-11. In an attempt to revise and enlarge
the railway network, the ministry has also allocated Rs. 16,752 crore while
presenting the union budget.
Commercial Structure and Corporate Projects
With most industries like textiles, chemicals and plastics, ferrous and nonferrous metals and non-metallic and mineral products operating at close to
full capacity, large investment in capacity expansions across sectors is
likely to boost cement demand. Strong off take is also expected from
select segments such as commercial complexes and multiplexes in
important centres such as Bangalore, Hyderabad and Ahmedabad.
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CHAPTER VI
EVALUTION AND SUGGESTIONS
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FINDINGS
The second one is that the vehicle traffic at the parking lot increases gradually
based on the demand of cement
On the average every vehicle spends nearly 13 hours to complete their process
(from the parking lot to gate out)
The average time spent in parking lot is 63%, loading is 15%, and placing time is
32% y every truck. Out of 182 truck (15 days) waiting time of 65 trucks fall under
5 to 10 hours. 42 trucks fall under 0 to 5 hours 10 trucks fall under 15 to 20 hours.
Permitting the truck in between to fulfill the local needs is the major reason for
the problem
The consumption of ACC ltd in the year 2014-15 will increase to 26404 tones
SUGGESTIONS
The time wastage of trucks can be eliminated by computerizing the token issue
counter at the parking lot.
Arrives for loading rarely, except that times the parking house remaining idle.
That could be used for loading the truck so that the next truck can be called in
earlier. In order to implement this man power must be increased.
To avoid trucks waiting in the parking lot, time and date for the dispatch for the
orders placed can be informed prior to the dealers so that they can send their
trucks at the time. The truck which has its dispatch on that day arrives and waits
in the parking lot. This reduce crowd in the parking lot.
The delay in the checking process can be minimized by automating the system.
Improvement or changes could be bought in the work atmosphere so that it may
increase productivity results
Due to large and expanded operations, the company should always keep a check
in its working capital. so that day to day production can continue without any
hindrance and financial obstacles
The management of inventory should ensure that no inventories are lying in stock
for log time.
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CHAPTER VII
LEARNING EXPERIENCE
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LEARNING EXPERIENCE
The training period in ACC Limited was immensely beneficial as I learnt practically all
that I had been studying theoretically. It also enabled me to understand the
implementation of various methods, policies, accounting procedures and other aspects in
the organization.
The organization study at ACC Limited, Madukkarai Cement works, to acquaint myself
with the business environment for a period of one month from May 2nd 2012 to June 4th
2012 as a part of the MBA curriculum at the School of Management and Business
Studies, Mahatma Gandhi University, Kottayam.
The study was conducted to understand the structure, function and process of various
departments and their interdependent. During the course of study I was able to
successfully interact with the employees of the organization. They were happy to give me
all possible information. They also took me to the plants and work sites were I got the
first hand information about the organizational process and function.
The methodology consists of data collection through interview, observation and literature
review. The data collection from different sources are classified and analyzed and
interpreted based on different which an organizational structure, its function various
departments are identified. The various departmental functions are clearly identified and
their process and activities carried are recorded and the department analysis made me to
understand the departmental process based on which a process chart is prepared. The
analysis further formed the basis for identifying the departmental interdependency. The
study further relives some of the challenges faced by the department. The study helps us
to obtain an exact picture of ACC Limited based on which, a SWOT analysis is done.
Finally with the help of latest statistics available for the organization, the present trend
and current scenario of ACC Limited is clearly revealed.
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CHAPTER VIII
CONCLUSION
&
BIBLIOGRAPHY
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CONCLUSION
From the above study conducted in ACC Madukkarai Cement Works, the
departmental structure and functioning of ACC Limited and its other plants become clear
to a large extend. The factors related to the functioning of each department and of the
organization as a whole become clear from the study conducted in ACC Limited.
From the above study the theoretical knowledge has become the experienced one. It
helped to understand and learn the actual structure and working of each and every
department of an organization. It also helped to observe and analyze closely the function
and procedure of each and every department of the organization.
The study also revealed the facts related to the changing environment of the cement
industry and its impact on the brands like ACC. It also revealed the facts related to the
opportunities and threats of cement industry of the country. It also represented the
sustainable development in the Indian cement industry and the impact of growth of
Indian cement industry on the economic growth of the country.
Thus from the above study the gap between the theoretical study and practical study has
been filled up. It provided an essence of experience in the pool of theoretical knowledge.
Chris Jose.
Email: meandkrz@yahoo.co.in
Mob: 9496333809
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BIBLIOGRAPHY
WEBSITES:
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