CONTENTS

1.INTRODUCTION TO PROJECT

2.CEMENT – PRODUCT HISTORY

3.CEMENT INDUSTRY

4.THE ASSOCIATED CEMENT COMPANIES LTD

5. FIRM PROFILE (SRI SHABAREESH

AGENCIES)

6.SURVEY FINDINGS

7.SUGGESTIONS AND CONCLUSION

Annexure

o Questionnaire

o Bibliography

1

CHAPTER – 1

INTRODUCTION TO PROJECT

INTRODUCTION

AIMS AND OBJECTIVE

SCOPE OF THE STUDY

METHODOLOGY

LIMITATIONS

2

CHAPTER – 1

INTRODUCTION

Indian Marketing Environment is largely described as

sellers market. We have chronic shortages and scarcities

particularly in convenience goods. Demand is invariably

greater than supply. Purchase power do masses is limited

more than 30% of our population have income below poverty

line bulk of our population resides in villages and marketers

have yet to capitalize rural marketing opportunities. The

consumers are ignorant, illiterate, unorganized and hence

they have weak bargaining power. Most of our business

enterprises are still having selling concept, which is product

oriented marketing approach. Bigger business houses

having national markets are adopting integrated corporate

planning and market planning as well as strategic market

programmes.

Marketing Research and information as well as strategic

marketing planning have very limited scope at present. A

change is taking place in the marketing environment at a

reasonable speed and many consumer oriented marketing

companies are beginning to realize the pressure of

competition and buyer’s market.

But the transaction to marketing orientation is a long

and difficult process. Marketing research has a bright future

in the feature of matured economy.

3

Marketers are caked upon to anticipate changes in the

marketing environment involving opportunities risks and

uncertainties. They are regained to forecast the direction

and intensity of there future change plant to meet

anticipated changes in the environment and secure favorable

relationship with the changing environment. To do there

intelligent planning marketers need information. Accurate

sales forecasting involves collection and processing of

information. We can have more accurate and reliable sales

forecast, marketing plans and programmes through

organized information system. We should have profitable

marketing activities, minimum risks and uncertainties.

This project report offers detailed regarding marketing

of Cement in general and marketing performance and

marketing share of ASSOCIATED CEMENT COMPANIES LTD.,

[ACC]. It also deals with a case study of SRI SHABAREESH

AGENCIES, SHIMOGA, reference have been made to

marketing of other Cements also so as to bring out

comparative cements.

In the modern world Cement has gained so much

recognition that no building is built without Cement. It is

deemed to be the best and only construction material at

present. Even though cement is used by almost every man

he does not know much about it.

This project report attempts to bring about details

regarding history, manufacturing process, types of cement

available, problems in marketing if cement and other details

regarding cement. Efforts have also been made to get the

4

opinion of dealers regarding marketing and other aspects of

Cement etc., and consumer’s opinion regarding ACC Cement.

Attempts have also been made to assess the marketing

performance of SRI SHABAREESH AGENCIES and certain

suggestions have also been given for improvement of

marketing strategy by adopting suitable marketing

programmes.

AIMS AND OBJECTIVE

1. To know about the process of manufacturing cement.

2. To know about the raw materials used in the process.

3. To analyze the sales performance of Acc cement in

General.

4. To analyze the sales performance of Cement by SRI

SHABAREESH AGENCIES.

5. To assess marketing strategy adopted by SRI

SHABAREESH AGENCIES.

6. To analyze the general problems in marketing of

cements and specific problems confronted by SRI

SHABAREESH AGENCIES.

7. To know consumer preference towards various brands

of cement especially towards ACC Cement.

8. To give specific suggestions for improvement pf

marketing strategy of SRI SHABAREESH AGENCIES.

5

SCOPE OF THE STUDY

The scope of this report is restricted to the study of

consumer preference and Dealers opinion regarding

marketing of ACC Cement in Shimoga City.

This report includes the efforts that have been taken up

by the “ASSOCIATED CEMENT COMPANIES LIMITED” to

improve the quality and sales and also the efforts that have

been taken up by SRI SHABAREESH AGENCIES” to increase

the sales of ACC cement in Shimoga city.

METHODOLOGY

The Method adopted to conduct this study may be

classified into 2 types. The information has been gathered

through two sources.

1. Primary data.

2. Secondary data.

The primary data has been collected through personal

interview and by observation. It has been collected directly

from the Firm Proprietor’s information are collected by

observational methods. Sources of Secondary data like News

papers, Magazines, Books, Internet helped a lot in preparing

this case study.

6

LIMITATIONS

Since Cement is used only in the process of

construction. It is rather difficult to get respondent

everywhere. It is also difficult to known the opinion of

respondences each and every one will have qualitative

knowledge about Cement.

There are channel of respondent issues being this

chance whether it may be a wrong or right this; may create a

bias in response. However it has been avoided as for as

possible.

The scope of study reconfirmed to shimoga only. The

reference has been drawn with the help of opinion of both

consumer’s and dealers of Shimoga town. There may be

channel of inference becoming unsuitable in, such marketing

environments which have completely a different set up of

marketing friend’s.

As Cement is a product confirmed to person who are

involved in the process of construction. It is very difficult to

get information for every one.

Even though it is difficult all attempts as have been

made and necessary precisions have been taken to award

bias and get answer to make the report a relative one.

7

CHAPTER – 2

CEMENT – PRODUCT HISTORY

INTRODUCTION

PORTLAND CEMENT

USE OF PORTLAND CEMENT

PRODUCT HISTORY

PRODUCTION OF CEMENT

MODERN PROCESS OF MANUFACTURING CEMENT

THE MODERN PROCESS

TYPES OF CEMENT AVAILABLE

STORAGE OF CEMENT

8

CHAPTER – 2

CEMENT – PRODUCT HISTORY

INTRODUCTION [Origin of the word Cement]

The word “CEMENT” is from the Swan “to cut” and

originally had reference to store cuttings used in lime mortar.

Then it is logical that in to middle age of the substances

known as “MORTAR” which is now used to the word was

commonly called as “CEMENT”. In correct modern age,

cement generally mean the substances which binds the

stones or bricks with which are built and term may be used

with respect to any materials serving such a purpose.

PORTLAND CEMENT

Port land Cement is a finely ground powder, usually

grey which when mixed with water hardens and develops

strength primarily because of a large content of hydrous

calcium Silicates. There and other constitutes react

chemically with the water by hydration and hydrolysis. The

most common raw materials are lime stone and clay or shell.

It is produced by burning at high temperature materials

containing lime, alumina, iron and silica in predetermined

proportion to given the desired and properties.

Normally, Gypsum or its derivatives are added during

grinding stage for set control. Portland cements with special

9

properties are produced by varying the oxide composition

and also by adding small amounts of chemicals agents at the

clinker grinding stage or later. When mixed with water alone

to form hard mass. Early investigators advanced divergent

theories as to why Portland cement forms a rigid strong

coherent mass when it reacts with water. It has since been

established that a colloidal of high internal surface area is

formed. Whatever the extent of direct chemical continuity, it

is apparent that the large internal surface forces may also be

involved.

USE OF PORTLAND CEMENT

A mixture of cement and water is called neat cement

paste, whether fresh or hardens. In some grunting

operations, including oil well cementing, the paste is used as

such. Generally however, it constitute two hardening

ingredient in mortar or concrete. This use of sand and stone

filler called aggregate is an economy and also reduces

shrinkage. Another use Portland cement is in soil cement

mixtures used as pavement base. Portland cement is also

mixed with asbestos fiber and water and processed to make

special products. Like organize plastics it derives much of its

utility from the fact that it is readily cost or molded into

shape. Concrete is used, extensively for shielding against

nuclear radiation. It is used around reactor and partial

accelerators and for construction of radiation shelters.

Sometimes special, heavy aggregates are used to reduce

required thickness.

10

PRODUCT HISTORY

The origin of cement dates back to the earlier

centuries. The first people to use the materials for binding

were the Egyptians. The Egyptians used impure Gypsum

plaster as mortar in constructing the famous pyramids once

of the seven wonders of the world. Greeks used slacked lime

for the purposes of construction. The Roman learned the use

or the utility of the binding materials from Egyptians and

Greeks. The Romans and Greek made a pozzolanic mortar

by mixing finely ground volcanic material with lime. The

word “Pozzoland” is derived from the word “pozzuoli”, name

of a place in Italy.

The Romans used powdered pottery fragments as

possalana or binding materials. The pozzolanic cements as

they were called were made by mixing the volcanic stuff and

powdered pottery fragments with lime and water. This

mixture was found to have the resistance needed for

exposing to water and air for a long times. At that time there

were the only mixture or cement as thus are called were

suitable for any type of exposure. Such cements are used to

constructing the famous structures as the Roman Pantheon

and coliseum.

The middle ages the quality of mortar declined. It was

commonly a sand-mortar lime mixture. The decline in the

quality of the mortar was the insufficient burning of lime.

11

It was in the 17th century that the actual compositions

by cement began to get its shape. In 1756 when John

Smeaton was commissioned to rebuild the Eddy stone light

house off the Cornwall port, in England.

At that time lime pozzalana was the only recognized

material for under water construction. But he was not

satisfied with the mixture semitone. Experimented with lime

and he found that clay constituted a considerable part of

lime. He is thus credited as the first person to find the

constituents of the hydraulic lime.

In 1796 James parker of England, patented a hard

burned impure lime. He used it as the binding material. It

did not slake (absorb water and crumble) when it was

exposed to water or air. He called it as the “Roman

Cement”. But this type if cements required as they were in

the form of crystals. This cement was the basis on which the

“National Cement” as it was called was produced in the

1820’s. But the only difference was the Natural Cement was

the mixture of hard burned impure lime and cement rock. A

type of rock which was available in U.S.A. thus the

foundation for the cement Industry was laid.

In 1824, a process of making cement was patented by

Joseph Apsdin in England. He named the cement as Portland

cement. This was because the cement products had the

resemblance of the Portland in England Apsdin, so confirmed

the name to the cement. Modern cement in logical and

scientific development from natural cement.

12

PRODUCTION OF CEMENT

Methods of production of cement have changed greatly

over the years. It has changed so much that there old

process has no connection with the modern process. Earlier,

the fire which was used to burn the raw materials was done

in a fixed place i.e., it was stationer; it could not be moved or

rotated. After a few years intermittently operated kilns were

used. The production was done on a small scale. The kilns

which were used for burning underwent great changes. The

most notable was the introduction of the rotary kilns. In

1877 T.R. Crompton obtained a British patent as a rotary kiln

for the purpose was not a success. Fredrick Ransance

obtained British and U>S> patents in 1885 and 1886

respectively.

This was the process that achieved the 1st success in

the United States. Thi9s eventually led to complete adoption

of rotary kiln for production of cement. But in Europe the

continuously operating staff kiln is even used today.

13

MODERN PROCESS OF MANUFACTURING CEMENT

PREVIOUS PROCESS:

Cement is a finely ground powder, usually grey which

when mixed with water hardens and develop-s strength

primarily because of large content of a hydrous calcium

silicates. The most common raw material is lime stone and

clay or share. The raw mix in finely ground and heated to

about 1500 degree celcious to decompose the calcium oxide

poultry fused clinker of marble size is produce the clinker is

then ground with the small amount of calcium sulphate

(gypsum). Then the content was obtained.

This was the type of manufacturing process which was

in use in the earlier days.

THE MODERN PROCESS

The modern manufacturing process of cement is of two

type.

1. Dry process.

2. Wet process.

14

FLOW DIAGRAM SHOWING MIXING OF RAW MATERIALS

DRY PROCESS

CALCAREOUS MATERIALS AGRELLACEOUS (LIME STONE ETC) MATERIALS (CLAY ETC)

CRUSHING CRUSHING

FUSE GRINDING IN BALL FUSE GRINDING IN VALL MILLS AND TUBE MILLS MILLS AND TUBE MILLS

STORAGE STORAGE

MIXING OF RAW MATERIALS IN CORRCT PROPORTION

STORAGE TANK

15

WET PROCESS

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

CRUSHING WASHING

STORAGE IN SIDE SILOS STORAGE IN BASINS

CHANNELS

GRINDING MILL

FERMENTATION OF SLURRY

CORRCTING BASINS

STORAGE TANK

16

The mixing of raw materials involves four stages. They

are

a. Size reduction.

b. Blending.

c. Liberating Carbon-di-oxide.

d. Pulverizations.

The procedures are the phases are almost identical in

both the process.

The phases are step that are involved in the

manufacturing process is

a. Mixing of raw materials

b. Burning.

c. Grinding.

TYPES OF CEMENT AVAILABLE

Till a few years back in India only ordinary Portland

cement was produced. But they were not ideal for extreme

weather in certain part of the country. Also this cement did

give good outlook if not pointed therefore the manufacturers

come to know about these factors and have manufacture

different types.

17

The list of cement is given here.

1. White cement

2. Color cement.

3. Water proof.

4. Acid Proof

5. Blast furnace.

6. High Alumina Cement

7. Ordinary Portland Cement

8. Expanding Cement

9. Pozzolana Cement.

10. Quick Setting Cement

11. Rapid Hardening Cement.

STORAGE OF CEMENT

Cement should be stored very care fully. That is in

huge closed containers that is silos. It is stored in closed

placed to avoid contact with atmosphere. This so because if

it gets mixed with the moisture in the atmosphere. It

becomes useless. It can also be stored in storage shed.

Cement was previously packed in gunny bags. But by

the time it reached actual consumer half it would have been

split over. This was compounded sealing problem. The bags

were sealed with threads. But was not so strong. But after

the polythene or Plastic bags came into scene the loss has

been curtained. It has become easy for transportation. The

18

bags are sealed with the help of machine. Hence major

problem of storing and transporting has been averted.

HOW IS CEMENT USED?

A mixture of cement and water is called heat cement

paste, whether fresh or hardened. In some granting

operations, so including oil well cementing. The paste used

as such generally; however, it constitutes the hardening

ingredient in mortar or concrete. This Cement paste

ordinarily amounts from 20% to 35% of the volume of the

concrete.

19

CHAPTER-3

CEMENT INDUSTRY

CEMENTING CONSTRUCTION SECTOR

COAL REQUIREMENTS

TRANSPORTATION

20

CHAPTER-3

CEMENT INDUSTRY

CEMENTING CONSTRUCTION SECTOR:

Cement is the basis material required for all

constructional works. It is vital ingredient to the countries

development.

India’s Cement Industry has experience steady

progress. Since its inception in 1914. The output of the

major and mini cement plants has increased from 57.6

million tons in 2001-02. The out put of cement may be high

at 68 million tons in 2002-03. India is the fifth largest

cement production after China, Russia, Japan and U.S.A.

With the turnover of Rupees 120 billion comprising 52

companies with 101 plants.

The cement industry in India is poised to scale new

heights thanks to the liberalization policies of the

Government adoption of state of the art Technology and the

massive investment of rupees 100 billion. By the year 2010

A.D. capacity of this Industry to reach the impressive level of

120 million tons.

India is presently producing several varieties of

cement. These includes to ordinary Portland Cement(OPC),

Portland Pozzalana cement (PPC), Portland Blast furnace slag

21

cement (PBFS), Rapid setting cement , oil well cement and

white cement. India is also producing high strength cement

like 43 grades and 53 grades. Low heat cement is produce

for the massive construction of Dames, Barrages, Deep

foundation for high rise building etc.

The domestic demand is assumed to grow at 8% per

annum. The cement capacity which was 62.05 million ton’s

in 1992-93 rise to 84.03 million ton in 2000-01. Around 7.85

million tons large cement capacity was proposed to add

during 2004-05 of which 5.50 million ton was to be

operational in 2005-06 and the remaining 2.35 million ton

would be operational; in 2006-07. Cement consumption may

reach a level of 92.65 million tons by 2010.

Mini cement plants were setup at the governments

insistence during the early 1980’s due to the storage of

cement. India has been one of the pioneering countries as

for as mini cement plant sprouted up around restricted and

scattered limestone deposit areas. Because of low

overheads and excise duty, the cement manufactured by

mini plant is much cheaper. Mini plant enjoy concession in

excise duty to the extent of rupees 7.50 per bag. However,

these plants depend upon traditional technology leading to

poor quality of cement.

Cement Machinery segment is witnessing a boom.

Segment is capable of manufacturing and supplying

complete cement plants based on the dry process and pre-

22

calcinations technology for capacities upto 5000 tons per

day. There are 18 units in the organized sector for the

manufacture of complete cement plant with total installed

capacity worth rupees 2000 million per annum. The total

production rise from rupees 1900 million in 2000-01 to

rupees 2250 million in 2001-02.

Inspite of some problem, the cement industry is at

present well pleading. It looks 14 years to double the

capacity to 29 million tons in 1998. Since then upto the end

of March 2000, it had gone upto 96.5 million tons and

increase of 140 %. Like wise in 1999-2000 consumption has

gone up by 6% after 1% fall in previous year of course,

government consumption has down from 50% in the early

1980’s to about 20%.

The Cement has great future however certain measures

as needed to setup the space of growth of cement industry.

There is need for accelerating the building of concrete road

and multi purpose hydro project. The storage of dwelling

units is currently at 35 million. Construction of houses

should priority area.

Currently India exporting cement to Bangladesh,

Srilanka, Nepal, U.A.E., Maldives, Philippines, Yemen, Dubai,

Qatar, and of few other countries.

The international cement rate is mostly in bulk for

which, India has virtually no facilities either in the cement or

in the transportation and handling.

23

The infrastructural facility in our ports are inadequate

for receipts, storage, handling, loading and unloading of

cements for instance Japan loads over 10,000 tons of cement

clinker a day as compared to India’s 3,000 ton a day.

COAL REQUIREMENTS:

The availability and movement of coal has been of

perennial problem of the cement industry. 90% of the coal

deposits are located in four states in Bihar, Orissa, West

Bengal, and Madhya Pradesh. Also burning Madhya Pradesh

none of the other states have any sizable lime stones

deposit. This coal has to be handled or very long distance.

Coal requirement by the industry today stands at 13

million tons at the 6% of the coal production. Cement

manufacturer are left the mercy of traders in coal who

charge exorbitant prices. The coal requirements may go

upto 21 million tons in 2004-05 and 25 million tons by 2010.

Transportation whether by rail, road or sea plays a

crucial role in the marketing and pricing of cement.

Transportation cost has gone up by over 100% during the

last 10 years. The bright for movement of cement for a

distance of 750 km was increased from rupees 134 per ton in

May 1982 to rupees 456 in April 2001. This was further

stepped upto rupees 484 by the railway budget for 2004-05.

24

According to cement manufacturing association (CMA)

on investment of rupees 500.00 million will be needed by the

industry in the next 10 years in order to double its capacity,

if it is to meet the countries demand on other rupees

150.000 million would be required for expansion and

modernization.

The cement industry has taken rapid strides in area like

energy conservation, mining, cement manufact5urer and

environment protection, thanks to efforts made by the nation

council for cement and building material (NCBM) and other

research organization.

As a result of large scale modernization and technology

up gradation, the industry is able to produce Cement at High

quality comparable to the best in the world. During the last

two decades the industry did experienced some

technological changes.

This includes;

1. Introduction of pre-calcinations technology.

2. Computer controlled kiln operation.

3. Pre blending of lime stone / coal and

4. Online quality control system.

The technological changes have resulted in reduction in

the overage energy consumption. The excise and

transportation of cement need to be pruned particularly in

the present context of liberalization and also the need for

25

boosting exports. In respect of vital in put like cement and

any undue cost escalation needs to be checked.

TRANSPORTATION

The cost of transportation and distribution constitutes a

large chunk of the price the customer pays for cement - it

can be as much as 30% at many locations in the country.

For a low value basic product like cement, minimizing of

transportation and distribution is in national interest to make

the economy more cost competitive.

Today nearly 60% of cement of production units to

supply points is transported by road and rest by rail. For

long distance movement of cement, rail is still the preferred

option due to its lower cost. Nearly all the cement from

supply points to customer is transported by road. The cost

competitiveness of both rail and road transport has

important bearing on the price of cement. Railways have

been steadily losing cement traffic due to the inflexibility of

freight and the operational; restrictions imposed on the

customer. The recent improvements of operational

efficiencies of railways is indeed laudable but if this is

achieved by passing on the entire burden to its customers,

We fear that the cost competitiveness of railways will

worsened in a long run - at least for a large volume low price

product like cement. Railways must examine all secondary

incurred by cement producer in transportation of cement

26

from rail heads if the cost competitiveness of rail movement

is to be improved. Railway should also consider allowing

cement producer to operate point-to-point rakes, with

multiple unloading points.

Road transportation during the last years was adversely

effected due to sharp and repeated increase in the price of

diesel. Taking advantages of the effective caring capacity of

trucks, road transporter were offering competitive freight

rate by carrying mare than stipulated loads. However the

enforcement of carrying load restriction in the recent past in

many states has seriously disrupted road transport system in

the country. Freight has shot up with the demand for a

higher number of vehicles for the same impact on the

cement industry will ever more severe. Also pollution and

traffic will increase if the same volume is transported by

large number of vehicle.

It is apparent that motor Vehicles produced in the

country have the capacity to carry large loans per axle than

is currently stipulated, with out compromising safety. It will

in the national interest to consider upward revision of the

present stipulated permissible loads per axle is that the

existing stock of vehicles is more productively used. This will

also meet the needs of the cement industry which one of the

largest used of road transport. Indian railway has revised

upward the effective capacity of their wagons; a similar

move is called for in respect of road transport to tie over the

looming crisis.

27

CHAPTER – 4

THE ASSOCIATED CEMENT COMPANIES LTD

INTRODUCTION

ACC - MILESTONES

ORGANISATION STRUCTURE

AWARDS & ACCOLADES 

READY MIXED CONCRETE

PROJECTS AND INVESTMENTS

HUMAN RESOURCES

THE ASSOCIATED CEMENT COMPANIES LIMITED

28

CHAPTER – 4

THE ASSOCIATED CEMENT COMPANIES LTD

INTRODUCTION

The associated cement companies ltd (ACC) is the

countries largest producer of cement it was established in

1936 with the philosophy of not to form a monopoly in

cement production but now, the situation of Indians cement

industry virtually becomes monopoly in favor of ACC. That

means ACC becomes such a giant in cement industry that

the other Indian industrial giant like birla, L&T, etc., who

have already entered into the cement industrial field are not

able to give a bit of competition to ACC. Despite a lot of ups

and downs faced by the several region. ACC becomes an

unbeaten sovereign of Indian cement industry. It is the

oldest cement companies among the private sector.

The ACC is the only cement company having the

research centre using. It has the central research at Thane

of Maharastra which was established in 1965.

Here various type cement and cement based products

are developed for the first time in India. Many of them are

substituted with some of the export from western countries.

It is the only company in India which products variety

and of cement and cement based product. Its products are

export from India. The company produces such a class of

goods which produced in the west. Only ACC produced such

29

variety of products in India with completely ingenious

technology. The company is known develops its own

technology called “ACC TECHNOLOGY”.

ACC’S FIRST BOARD MEETING IN 1936 AT THE ESPLANADE

Sir Nowroji B Saklatvala was the first chairman of ACC.

The first Board included distinguished luminaries of the

Indian business world of the time – names like J R D Tata,

Ambalal Sarabhai, Walchand Hirachand, Dharamsey Khatau,

Sir Akbar Hydari, Nawab Salar Jung Bahadur and Sir Homy

Mody among others.

Barely three years later, the fledgling company was

catapulted into the fiery cauldron of World War II, and

resources were geared to meet that onslaught. Soon after,

India gained her independence. ACC was there - more than

an eyewitness to history. Helping to make history. Helping to

build the new India, waiting in the wings… changing the

landscape, the very face of the country.

30

Over the years, ACC realized that people are as different as

they are similar. Different needs, different lives, different

dreams. With its depth of knowledge and width of experience

ACC, today, is poised to fulfill the hopes and aspirations of

people across the length and breadth of the country.

For decades now, ACC has been forging a pioneering

path making cement. Along the way, it sharpened its

expertise on the cutting edge of the latest processes and

technologies: learning/adapting - not just transplanting - to

meet the specifics of local operating parameters. In the

process - setting standards, innovating, not just meeting

needs, but anticipating them.

A strategic alliance

The house of Tata was intimately associated with the

heritage and history of ACC, right from its formation in 1936

upto 2000. Between the years 1999 and 2000, the Tata

group sold all 14.45 per cent of its shareholding in ACC in

three stages to subsidiary companies of Gujarat Ambuja

Cements Ltd (GACL), who are now the largest single

shareholder in ACC. This has enabled ACC to enter into a

strategic alliance with GACL; a company reputed for its brand

image and cost leadership in the cement industry.

Holcim - a new partnership

A new association was forged between ACC and the

Holcim group of Switzerland in 2005. In January 2005, Holcim

announced its plans to enter into a long-term strategic

31

alliance with the Ambuja Group by acquiring a majority stake

in Ambuja Cements India Ltd. (ACIL), which at the time held

13.8 per cent of the total equity shares in ACC. Holcim

simultaneously announced its bid to make an open offer to

ACC shareholders, through Holdcem Cement Pvt Limited and

ACIL, to acquire a majority shareholding in ACC. An open

offer was made by Holdcem Cement Pvt. Limited along with

Ambuja Cements India Ltd. (ACIL), following which the

shareholding of ACIL increased to 34.69 per cent of the

Equity share capital of ACC. Consequently, ACIL has filed

declarations indicating their shareholding and declaring itself

as a Promoter of ACC.

Holcim is the world leader in cement as well as being

large suppliers of concrete, aggregates and certain

construction-related services. Holcim is also a respected

name in information technology and research and

development. The group has its headquarters in Switzerland

with worldwide operations spread across more than 70

countries. Considering the formidable global presence of

Holcim and its excellent reputation, the Board of ACC has

welcomed this new association.

32

ACC’s Head Office - Cement House,

121 Maharshi Karve Road, Mumbai.

ACC’s registered office was first located at Esplanade

House in South Mumbai, a graceful edifice that still stands

out in its neighborhoods. The head office then shifted to its

own premises in Cement House shown here. The address of

this stately building was then Number 1, Queen’s Road,

Church gate. An all-India competition in 1938 had invited

leading architects of the time to send in their designs of

which this elegant design made by Ballardie Thompson &

Mathews was chosen as the winning entry. Work on its

construction began in 1939 and was completed during the

War period. The building was occupied by the Royal Air Force

and vacated only in 1946.

33

ACC - Milestones

  1936 Incorporation of The Associated Cement

Companies Limited on August 1, 1936.

1936 First Board Meeting of The Associated Cement

Companies Limited held at Esplanade House,

Mumbai on November 10, 1936.

1937 With the transfer of the 10th company to ACC,

viz. Dewarkhand Cement Company, the

formation of ACC is complete on October 23,

1937.

1944 ACC’s first community development venture

near Bombay

1947 India’s first entirely indigenous cement plant

established at Chaibasa in Bihar

1952 Village Welfare Scheme launched

1956 Bulk Cement Depot established at Okhla, Delhi

34

1957 Technical training institute established at

Kymore, Madhya Pradesh.

1961 Oil well Cement manufactured at ACC Shah bad

Cement Works in Karnataka for cementation of

oil wells up to a depth of 6,000 feet.

1961 Manufacture of Hydrophobic (waterproof)

cement at ACC Khalari Cement Works in Bihar.

1962 Manufacture of Accoproof, a waterproofing

additive.

1965 ACC’s Central Research Station (CRS)

established at Thane

1965 Manufacture of Portland Pozzolana Cement.

1973 Take-over of The Cement Marketing Company

of India (CMI)

1978 Introduction of the energy efficient

precalcinator technology for the first time in

India. Full scale commercial production based

on MFC technology at Wadi in 1979.

35

1979 ACC wins international contract for operation

and management of a new one million tone

cement plant at Yanbu-Ras Biridi in Saudi

Arabia.

1987 ACC develops a new binder for use at sub-zero

temperatures, which is successfully used in the

Indian expedition to Antarctica.

1992 Incorporation of Bulk Cement Corporation of

India, a joint venture with the Government of

India.

1993 ACC starts the commercial manufacture of

Ready Mixed Concrete at Mumbai.

1998 Commissioning of the 0.6 MTPA cement

grinding unit at Tikaria, Uttar Pradesh.

2000 Tata Group sells their remaining stake in ACC to

the GACL group, who with 14.45% now emerge

as the single largest shareholder of ACC.

2003 IDCOL Cement Ltd becomes a subsidiary of ACC

2004 IDCOL Cement Limited is renamed as Bargarh

Cement Limited (BCL).

36

2004 ACC raises US $ 100 million abroad through

Foreign Currency Convertible Bonds (FCCB’s)

for US$ 60 million and Global Depository Shares

(GDS’s) for US $ 40 million. Both offerings are

listed on the London Stock Exchange.

2005 ACC receives the CFBP Jamnalal Bajaj Uchit

Vyavahar Puraskar Certificate of Merit – 2004

from Council For Fair Business Practices.

2006 Holcim group of Switzerland enters strategic

alliance with Ambuja Group by acquiring a

majority stake in Ambuja Cements India Ltd.

(ACIL) which at the time held 13.8 % of the total

equity shares in ACC. Holcim simultaneously

makes an open offer to ACC shareholders,

through Holdcem Cement Pvt. Limited and ACIL,

to acquire a majority shareholding in ACC.

Pursuant to the open offer, ACIL’s shareholding

in ACC increases to 34.69 % of the Equity share

capital of ACC.

2007 Commissioning of Modernization and Expansion

project at Chaibasa in Jharkhand, replacing old

wet process technology with a new 1.2 MTPA

clinkering unit, together with a captive power

plant of 15 MW.

ORGANISATION STRUCTURE

37

The ACC Board comprises executive, non-executive,

and nominee directors. This group is responsible for

determining the objectives and broad policies of the

Company - consistent with the primary objective of

enhancing long-term shareholder value. The Board meets

once a month.

Two other small groups of directors - comprising

Shareholders'/Investors' Grievance Committee and Audit

Committee of the Board of Directors - also meet once a

month on matters pertaining to the finance and share

disciplines.

Besides these bodies, there are senior executives and

other regional managers - based at the Company's corporate

office, and at its marketing offices and manufacturing units -

who contribute to the development and operation of the

various functions.

While these groups form the core management team

that frames and guides corporate policy, ACC is proud of its

manpower strength of about 15,000 people, who comprise

experts in various disciplines assisted by a dedicated

workforce of skilled persons. Quite a number of them have

logged many years of service with the organization. They

come from all parts of the country and belong to a variety of

ethnic, cultural and religious backgrounds. Because of such a

cosmopolitan make-up, ACC can rightly be said to embrace

within its fold a family that forms a 'mini-India'.

38

Awards & Accolades 

National Award for outstanding performance in

promoting rural and agricultural development –

by ASSOCHAM

Sword of Honor - by British Safety Council, United

Kingdom for excellence in safety performance.

Indira Priyadarshini Vrikshamitra Award --- by The

Ministry of Environment and Forests for "extraordinary

work" carried out in the area of afforestation.

FICCI Award --- for innovative measures for control of

pollution, waste management & conservation of mineral

resources in mines and plant.

Subh Karan Sarawagi Environment Award - by The

Federation of Indian Mineral Industries for environment

protection measures.

Drona Trophy - By Indian Bureau Of Mines for extra

ordinary efforts in protection of Environment and

mineral conservation in the large mechanized mines

sector.

Indo German Greentech Environment Excellence

Award

Golden Peacock Environment Management

Special Award - for outstanding efforts in Environment

Management in the large manufacturing sector.

39

Indira Gandhi Memorial National Award - for

excellent performance in prevention of pollution and

ecological development

Excellence in Management of Health, Safety and

Environment : Certificate of Merit by Indian Chemical

Manufacturers Association

Vishwakarma Rashtriya Puraskar trophy for

outstanding performance in safety and mine working

Good Corporate Citizen Award - by PHD Chamber of

Commerce and Industry

Jamnalal Bajaj Uchit Vyavahar Puraskar -

Certificate of Merit by Council for Fair Business

Practices

Greentech Safety Gold and Silver Awards - for

outstanding performance in Safety management

systems by Greentech Foundation

FIMI National Award - for valuable contribution in

Mining activities from the Federation of Indian Mineral

Industry under the Ministry of Coal.

Rajya Sthariya Paryavaran Puraskar - for

outstanding work in Environmental Protection and

Environment Performance by the Madhya Pradesh

Pollution. Control Board.

National Award for Fly Ash Utilization - by Ministry

of Power, Ministry of Environment & Forests and Dept of

40

Science & Technology, Govt of India - for manufacture

of Portland Pozzolana Cement.

CEMENT BUSINESS

Our cement business performed well during the year.

ACC as a group registered increased sale of 12.97 million

tones of cement for nine months ended December 31, 2007

as compared to 12.14 million tones in the corresponding

period of the previous year. The sales turnover for nine

months ended December 31, 2007 grew to Rs.2794.33

crores as compared to Rs. 2494.05 crores in the same period

of the preceding year.

Your Company has reoriented its marketing activities

with greater focus on the customer and end-user. Several

initiatives have been taken to provide much more service

orientation in a manner that will help differentiate the image

of the Company.

READY MIXED CONCRETE

Your Company’s Ready Mixed Concrete (RMX) business

maintained the growth trend witnessed in the last few years

with the turnover of this business growing by 27 per cent in

the nine months ended December 31, 2007. We further

strengthened our RMX business by the acquisition of Tarmac

(India) Pvt. Ltd., the Indian arm of Tarmac Heavy Building

Materials Overseas Ltd. of UK, with RMX units in Mumbai

region.

41

Ready Mixed Concrete industry is perhaps among the

fastest growing sectors in India with compound annual

growth rate of over 30 per cent. In the coming years the

country will witness increased construction activity with

faster development in our cities and infrastructure. RMX is

expected to play a very important role in this scenario.

An important ingredient in RMX is aggregates. These

minor minerals come under the purview of state

governments and their mining is predominantly in the

unorganized sector. As a result, supplies are erratic and

prices fluctuate widely, adversely affecting RMX industry.

There is a need to revisit the current policy of granting short

term leases if the aggregate production has to evolve as an

organized sector in our country.

42

PROJECTS AND INVESTMENTS

The Company successfully completed the modernization

project at Chaibasa and commenced commercial production

on September 16, 2007. Our other projects viz augmentation

of capacity at Gagal Unit II in Himachal Pradesh,

augmentation of grinding capacity at Wadi and Tikaria,

expansion of capacity at Lakheri and the setting up of a 25

MW Captive Power Plant at Lakheri are progressing on

schedule.

DISINVESTMENT

During the year, we made notable progress in exiting

from our non-core non-cement business. We divested the

Refractory Business in September, 2007 to ACE Refractories.

The sale of this unit earned us a profit of Rs.174.05 crores.

Similarly we exited from Everest Industries which ceased to

be a subsidiary of your Company. We hope to divest our

balance non-core subsidiaries during 2006.

CONSOLIDATION

Two of your Company’s subsidiaries Bargarh Cement

Ltd. and Damodhar Cement and Slag Ltd. were merged with

the Company after receiving the necessary approvals. With

this, your Company now operates a countrywide network of

14 cement plants based at 10 12 locations. Annual cement

capacity of your Company now is 19.03 million tones.

43

CHANGE OF NAME:

The Board of Directors decided that the name of your

Company be abbreviated and changed to “ACC Limited” so

as to reflect its Corporate image and brand name more

accurately. Over the years, your Company has come to be

referred popularly in the cement market and the financial

world by its acronym “ACC”. The Company’s products are

also sold under the name “ACC” which has been registered

as a Trade Mark. We believe that the change of name to

“ACC Ltd.” will be more user-friendly.

DIRECTORATE

Your Board has been strengthened with the joining of

Mr. D K Mehrotra, Mr. R A Shah, Dr Nirmalya Kumar, Mr. S

Haribhakti and Mr. A Singhvi.

Mr. D K Mehrotra is the Managing Director of Life

Insurance Corporation of India. He has held important

positions in LIC in India and abroad.

Mr. R A Shah is a senior partner of Crawford Bayley &

Company and a reputed solicitor specializing in a broad

spectrum of corporate laws.

Dr Nirmalya Kumar is a Professor in London Business

School and well-known in the field of management

education. A prolific writer, Dr Kumar is the author of many

books on management.

44

Mr. Haribhakti is Managing Partner of a leading

accounting firm “Haribhakti & Co” and CEO of “Haribhakti

Group” having a presence of more than five decades in the

areas of accounting, financial and management services in

India.

Mr. Anil Singhvi has been associated with Gujarat

Ambuja Cements Limited (GACL) since 1986 and has held

very senior managerial positions in that Company. He is

presently the Managing Director of GACL.

I welcome these distinguished gentlemen to the Board.

We stand to gain much from their expertise.

HUMAN RESOURCES

I have been a great admirer of the talent of your

Company’s people. Their dedication upholds and nurtures

the enviable reputation of the Company. They are

enthusiastic and quick to adapt to changes in the

environment while maintaining high standards of efficiency

as well as the great ethical tradition that ACC is known for.

They are indeed the architects of the impeccable image and

high standing of the Company. ACC enjoys a track record of

peaceful and harmonious industrial relations. I wish the

employees of your Company and their family’s good luck and

health always.

45

-TRAINING

- WELFARE

TRAINING

An enterprise like ACC is part of the national

community with responsibilities towards a wide range of

institutions and individuals. And the one closest to ACC is its

concern to train manpower for the cement industry as well as

in specialized trades and subjects for various industries.

The Sumant Moolgaokar Institute (SMEI) - is an

eloquent testimony to the ACC commitment to training. It

provides exhaustive training in various trades like

electricians, instrument mechanics, diesel mechanics, fitters,

machine tool operators, welders, and foremen in various

disciplines. The institute has turned out a vast number of

artisans and foremen who are manning senior positions in

cement and other industries.

ACC's commitment to training and the company's

philosophy of sharing expertise by training manpower for the

cement industry as a whole is very well known. It has been

substantiated by an allocation by the World Bank/DANIDA

groups of a grant to the Regional Training Center (RTC), at

the ACC plant at Jamul, for the benefit of cement plants in

central and eastern India.

The analytical skills development program (ASDP) helps

management trainees improve thought processes and

analytical ability in order to uncover and examine problems

46

more effectively. Deputy Managers are put through a

managerial skills development program (MSDP) to instill the

skills required for responsible leadership and analytical

business situations. A management competency

development program (MCDP) supports this with niche

training for managers in their respective fields. And the

cross-functional skills development program (CFSD) helps

broaden their outlook. Finally, the general management

course (GENMANCO), and the strategic leadership

development program (SLDP) for senior managers and vice

presidents, respectively, help them to develop

responsiveness towards the current and future challenges by

sharpening.

WELFARE

It is all too easy to see a company like ACC in abstract

terms of balance sheets, technologies and organization

charts. Such a view overlooks the fact that the most valuable

assets are the commitment and skills of individuals who

make the system work and lay the foundations for future

growth.

Apart from laying stress on training, ACC offers a host

of facilities to its employees to maintain a congenial working

environment. Among those given at the factories:

houses/tenements for a large number of workers and staff,

cooperative societies, crèches, dispensaries/hospitals,

canteens, rest halls and so on. Benefits are liberally

subsidized by the company.

47

Over the years, the company's community welfare

schemes have continued to benefit the people around whom

ACC moves and has its operations with activities including

health care, adult education, irrigation, animal husbandry,

cottage industries etc.

48

THE ASSOCIATED CEMENT COMPANIES LIMITED

Registered Office: Cement House,

121, Maharshi Karve Road, Mumbai - 400 020

CONSOLIDATED AND STANDALONE AUDITED FINANCIAL

RESULTS FOR THE PERIOD APRIL 2007-DECEMBER-2007

- CONSOLIDATED PROFIT AFTER TAX FOR APRIL-DECEMBER-07 UP

BY 133 % AT

   Rs. 513.73 CRORE.  (STANDALONE - Rs.544.18 CRORE UP BY

156 %)

- CONSOLIDATED SALES VOLUME FOR APRIL-DECEMBER-07 12.97

MT UP BY 6.8%.

- CONSOLIDATED SALES VALUE FOR APRIL-DECEMBER-07 UP BY

10 %

   (STANDALONE UP BY 15 %)

- CHANGE IN ACCOUNTING PERIOD

- DIVIDEND 80 %

I. The audit committee have reviewed and the Board

of Directors of the company have approved the

49

audited Consolidated and Standalone accounts for the

period April to December-2007 at its meeting held on

January 24, 2008 and the text of this statement was

also taken on record.

II. AUDITED CONSOLIDATED RESULTS

   

YEAR

(NINE

MONTHS)

NINE

MONTHSYEAR

     ENDED  ENDED  ENDED

   DEC 31,

2007

 DEC 31,

2006

 MARCH

31, 2007

    AUDITED REVIEWE

D AUDITED

    Rs.Crore Rs.Crore Rs.Crore

1 NET SALES / INCOME FROM

OPERATIONS3861.18 3508.79 4864.72

   LESS: EXCISE DUTY RECOVERED 497.72 464.39 637.50

   NET SALES 3363.46 3044.40 4227.22

         

2  OTHER INCOME      

    i) Dividend 4.72 0.17 0.23

   ii) Gain/(Loss) on foreign exchange

(Net) (6.98) (3.88) (4.59)

   iii) Other items 84.63 38.31 68.32

   iv) Other non-recurring items 25.58 18.37 31.91

         

3 Share of earnings of Associates 1.20 0.35 0.82

  TOTAL (1+2+3) 3472.61 3097.72 4323.91

         

4  TOTAL  EXPENDITURE      

         

   a)( Increase) /Decrease in stock in (53.71) (62.35) (47.70)

50

trade

   b) Consumption of Raw materials 568.75 533.87 733.15

   c) Staff cost 204.35 190.39 256.97

   d) Power & Fuel 678.87 647.10 842.64

  e) Outward Freight charges on Cement

etc. 532.72 404.40 542.24

   f) Excise Duties (Net) 45.43 49.26 64.95

  g) Purchase of Cement & Other

Products 47.90 62.85 84.11

   h) Other Expenditure 771.49 700.40 1037.28

   Total Expenditure 2795.80 2525.92 3513.64

         

         

5 PROFIT BEFORE INTEREST,

DEPRECIATION, MINORITY      

  INTEREST, EXCEPTIONAL ITEMS

AND TAX (1+2+3-4) 676.81 571.80 810.27

         

6  INTEREST  (NET) 65.97 71.08 92.54

         

7  DEPRECIATION 171.70 168.41 225.70

         

8  MINORITY INTEREST 4.13 4.13 6.11

         

9 PROFIT/(LOSS) AFTER MINORITY

INTEREST &     

  BEFORE TAX & EXCEPTIONAL

ITEMS (5-6-7-8)435.01 328.18 485.92

         

1

0 EXCEPTIONAL ITEMS      

  a) (Provision) / Write back of

contingencies 1.44 (0.50) (0.50)

   b) Profit on sale of undertaking- 174.05 - -

51

Refractory Business

   c) Employees retirement Benefits (13.15)  

   d) Profit from Divestment of Subsidiary 69.00  

         

1

1

 PROFIT/(LOSS) AFTER

EXCEPTIONAL ITEMS      

   & BEFORE TAX ( 9+10) 666.35 327.68 485.42

         

1

2 PROVISION FOR CURRENT TAX 75.84 34.33 59.86

         

1

3 PROVISION FOR DEFERRED TAX 70.47 73.07 23.04

         

1

4 FRINGE BENEFIT TAX 6.31    

         

1

5

 PROFIT/(LOSS) AFTER PROVISION

FOR TAXATION      

  & EXCEPTIONAL ITEMS  (11-12-13-

14)513.73 220.28 402.52

         

1

6 Paid- up Equity share capital 184.72 179.57 178.74

  ( Face value per share Rs.10 )      

         

1

7

 Reserves excluding Revaluation

Reserves 1966.89   1501.19

         

1

8

 Basic Earnings per

Share                               Rs. 28.33 12.36 22.58

  Diluted Earnings per

Share                             Rs. 27.46 11.91 21.73

         

52

1

9

 Aggregate of Non-Promoter

Shareholding      

   Number of Shares 12254633

6178416154 178533611

   Percentage of shareholding  66.42% 100% 100%

53

V. Turnover and Profits

CONSOLIDATED

The accounting year has been changed from April – March to

January – December. Therefore the accounts have been

drawn up for Nine months for the period ended December

31, 2007.

The profit after tax for nine months ended December 31,

2007 increased to Rs. 513.73 crore including profit on sale of

Refractory business and profit on sale of subsidiary as

compared Rs. 402.52 crore for financial year 2006-07 (12

months).

Sale of cement for nine months ended December 31, 2007

was 12.97 million tones as compared to 16.57 million MT for

the financial year 2007 (12 months). Sales turnover for nine

months ended December 31, 2007 was Rs. 3,363.46 crore as

compared to Rs.4227.22 crore for financial year 2004-07 (12

months).

Improved volume and realization as offset by increase in cost

of inputs has resulted in higher profit before interest,

depreciation, exceptional items and tax at Rs. 676.81 crore

for nine months ended December 31, 2005 as compared to

Rs. 810.27 crore for financial year 2006-07 (12 months).

Interest cost (net) was Rs. 65.97 crore for nine months

ended December 31, 2007 as compared to Rs. 92.54 crore

for financial year 2006-07 (12 months). Depreciation was

54

higher at Rs. 171.70 crore as compared to Rs. 225.70 crore

for financial year 2006-07 (12 months).

The above explanations hold good for standalone results.

VI. New Projects/Modernization

The modernization project at Chaibasa commenced

commercial production with effect from September 16, 2007.

The augmentation of capacity at Gagal Unit II and projects at

Lakheri for expansion of capacity and setting up 25 MW

Captive Power Plant are progressing as per schedule.

VII. Divestment of Subsidiary

The Company has sold 85.48 lakh shares of Everest

Industries Limited (EIL) and appropriate profit on sale has

been recognized during quarter ended December 31, 2007.

EIL ceased to be a Subsidiary of the company.

VIII. Divestment of Refractory Business

The Company has divested its Refractory Business as on

September 30, 2007 and profit on sale of undertaking

amounting to Rs. 174.05 Crore has been recognized during

the nine months ended December 31, 2007.

IX . Merger

The company’s subsidiaries Bargarh Cement Ltd. and

Damodhar Cement and Slag Ltd. have been merged with the

Company as per the scheme for merger duly approved by

55

the Shareholders and confirmed by the respective Courts.

The numbers of subsidiaries are reflected in the results of

the company.

X. Acquisition

The Company acquired 98.84% of the Equity shares of

Tarmac (India) Pvt. Ltd... (TIPL) from Tarmac Heavy Building

Materials Overseas Ltd., UK. TIPL is in the Ready Mix

Concrete business. TIPL is now a subsidiary of the Company.

It is proposed to merge TIPL, subject to requisite approvals

with Company with effect from January 1, 2008.

XI Outlook

The cement industry recorded a growth rate of around 10%

for nine months ended December 31, 2007 as compared to

8.7% in the corresponding previous period. With the

continued emphasis on infrastructure and housing sector

and with good monsoons in most parts of the country,

industry is expected to do well in future. With the improving

overall growth of the economy (GDP) which is expected to be

over 7% per annum and with improving demand-supply

dynamics, cement industry may experience stable to

improved cement prices.

XII Dividend

The Board of Directors has decided to recommend a dividend

of Rs. 8 per share aggregating to Rs. 168.31 Crore (including

56

tax on dividend).

(M.L.Narula)      

MANAGING DIRECTOR

Mumbai - January 24, 2008

Our Vision

ACC (The Associated Cement Companies Limited) is

India's foremost manufacturer of cement and concrete. Its

sales turnover for nine months ended December 31, 2007

grew to Rs.2794.33 crores as compared to Rs.2494.05 crores

in the same period of the preceding year. ACC's operations

are spread throughout the country with 14 modern cement

factories, 11 regional marketing offices, and several zonal

offices. It has a workforce of about 9000 persons and a

countrywide distribution network of over 9,000 dealers.

ACC's research and development facility has a unique track

record of innovative research, product development and

specialized consultancy services. Since its inception in 1936,

the company has been a trendsetter and important

benchmark for the cement industry in respect of its

production, marketing and personnel management

processes. Its commitment to environment-friendliness, its

high ethical standards in business dealings and its on-going

efforts in community welfare programmer have won it

acclaim as a responsible corporate citizen. ACC has made

57

significant contributions to the nation building process by

way of quality products, services and sharing its expertise.

The company's various businesses are supported by a

powerful, in-house research and technology backup facility -

the only one of its kind in the Indian cement industry. This

ensures not just consistency in product quality but also

continuous improvements in products, processes, and

application areas.

All of this is underscored inasmuch as this research and

technology base - housed under an autonomous division

known as Research and Consultancy Directorate (RCD) - has

received recognition from premier research and technology

institutes in India and abroad.

Today, the company's operations are spread

throughout the country - with 14 cement factories, 11

regional marketing offices, 21 area offices, and a dedicated

employee band of about 9000 people from all corners of

India.

ACC has also extended its services overseas to the

Middle East, Africa, and South America, where it has

provided technical and managerial consultancy to a variety

of consumers, and also helps in the operation and

maintenance of cement plants abroad.

58

F. E. Dinshaw – the

founder of ACC

ACC stands out as the most unique and successful

merger in Indian business history, in which the distinct

identities of the constituent companies were melded into a

new cohesive organization – one that has survived and

retained its position of leadership in industry. In a sense, the

formation of ACC represents a quest for the synergy of good

business practices, values and shared objectives. The use of

the plural in ACC’s full name, The Associated Cement

Companies Limited, itself indicates the company’s origins

from a merger. Many years later, some stockbrokers in the

country’s leading stock exchanges still refer to this company

simply as ‘The Merger’.

Heritage

The house of Tata was intimately associated with the

heritage and history of ACC, right from its formation in 1936

upto 2000. Between the years 1999 and 2000, the Tata

group sold all 14.45 per cent of its shareholding in ACC in

three stages to subsidiary companies of Gujarat Ambuja

Cements Ltd (GACL), who are now the largest single

shareholder in ACC. This has enabled ACC to enter into a

strategic alliance with GACL; a company reputed for its brand

image and cost leadership in the cement industry.

59

60

CHAPTER – 5

FIRM PROFILE

(SRI SHABAREESH AGENCIES)

CEMENT DEALERS IN SHIMOGA

MARKETING AND POLICIES OF THE FIRM

MARKETING PROBLEMS

61

CHAPTER – 5

FIRM PROFILE

“SRI SHABAREESH AGENCIES” was opened in 1985. It

is situated on balraj urs road for being more convenient to

interact with transports. Mr. C.P. SUNDAR RAJ, is the

MANAGING PARTNER of SRI SHABAREESH AGENCIES, he is a

young man aged 48, S/O C.V. Puttanna shetty. His

Qualification is P.U.C. His native is Arsikere – Hassan District

Karnataka. He migrated to shimoga in 1985. He Knows

English, Kannada, Hindi, Tamil and Telugu language.

Mr. C.P. Sundar Raj has 30 years experience in trading

activities.

He started business in 1976 as a small shopkeeper at

Arsikere taluk. After 2 years of experience he started

wholesale business also in the age of 20th he moved to north

India for purchase of Hardware in wholesale and retail

market. He started his business in and around Arsikere

covering about 150 km in radius.

In 1985 he got separated from his family and came and

settled down in shimoga with the small cash in hand started

in 9-9-1985 He had his own circle of friends and relatives

and improved the business royally good competing with local

market.

62

He made his name to be at the top of the town. He

mainly dealing with constructions steel equipments and

cement in the name style of Sri Karthik Hardwares. First it

was situated in 3rd cross, Garden area and after one year he

shifted for his own premises situated at Durgigudi, main

road. He was dealing with number of brands of cement with

quality, such as.

1. ACC

2. BAGALKOT

3. DIOMOND

4. RAASHI

5. CORAMANDAL etc.,

After a long successful carrier in business. ACC

recognizes him from being a good seller in 1990 and

appointed him as C&F agent (clearing and forwarding agent).

According to the saying of Mr. Sunder raj, “a dealer

may not be a highly qualified but highly sensitive to assess

the customer and his requirements the best service possible

given will be recognize”.

“Any convinced customer will be a free advertiser”. He

explains also he had well experience with co-traders,

Engineers, Financiers, Contractors and even with Politicians,

no body can guess the business at any time may get affected

with any of the agency said above.

63

And as C&F agent he has got 9 staff members in the

Office, and 80 Hamals at the godown, and 100 at the Railway

station, and he has owned by 20 Lorries for clearing the

Cement.

CAPITAL STRUCTURE

At that time the initial capital of the firm was 5, 00,000.

The firm started this by taking Loans from Vysya bank

shimoga. It includes the cost of Furniture, advance of

building, lighting arrangements etc., the firm involves in

dealing with cement products according to the customer

behavior with reference to various brands of the products.

CEMENT DEALERS IN SHIMOGA

AUTHORISED DEALER:

1. Ganesh steels.

2. K.S. Narayana setty and sons.

3. Salamath Enterprises.

4. Sri Veerabhadreshwara traders.

5. Hampee virupaksha traders.

6. Chowthy traders.

7. Anand trading company

8. Sagar traders.

9. Banashankary traders.

10. Sri Venkateshwara traders.

11. Nutan agencies.

12. U.K.S. Sitaram Acharya.

13. Sri Gurukaribasaveswara Traders.

64

Table No-1

Table showing the number of dealers in some

districts who have dealing with Shabareesh agencies as

C&F agents. They are shown by percentage.

Districts No. Of dealers

South canara

Udupi

Shimoga

Chikmagalore

Hassan

29

12

20

17

10

From the above table Sri Shabareesh agencies have

dealing with dealers in some districts. Among 5 districts

South canara has 37% of large number of dealers, shimoga

and Udupi has 16% of dealers respectively, and

Chickmagalore has 17% dealers and Hassan has small

number dealers by 10%.

65

MARKETING AND POLICIES OF THE FIRM

Modern market is consumer oriented market.

Consumer is the king of the market begins with consumer

needs and ends with consumer satisfaction. Such market is

conditioned by two set of factors. Controllable and

uncontrollable factors. Controllable factors are those factors

which are with in the hold of the firm. The success of the

product depends upon these factors.

1. Product Mix policy

2. Price Mix policy

3. Promotional Policy

4. Distribution Policy

1. PRODUCT MIX POLICY:

Shabareesh agencies are promoting their business as

C&F agents of M/S ACC Ltd with dealing with cement. The

firm deals with cement according the order given by the

dealers. As the product which the firm is dealing is

exclusively under the category of cement.

2. PRICE MIX POLCY

Pricing is the most important marketing mix policy. It

has strategic importance as pricing is marketing weapon. It

required by the firm to undertake a good pricing policy

because it is an important factor which influences the

customer in purchasing of product.

Shabareesh agencies are exclusively C&F agents for

M/S ACC Ltd and they act according to the norms of the firm

66

by pricing, collection, service documentation, reporting, and

acknowledgements etc.

3. PROMOTIONAL MIX POLICY

M/S The ACC Ltd has adopted several promotional

activities to move forward the cement product in market. It

has undertaken advertising of the product through broad

advertisement. The company has adopted broad advertising

because it acts as an effective sales man. The other

measures through which the company has taken to

popularity,

Its name is,

a) News paper advertisement

b) Calendar

c) Cable advertisement.

4. DISTRIBUTION MIX POLICY

Distribution means transfer of the product from C&F

agents to dealers to final consumer. Shabareesh agency

supplies goods directly to the consumer or contractor. The

company directly deals with the final consumer and some

time takes the help of middleman like contractors or Home

builders.

67

MARKETING PROBLEMS

M/S The ACC Ltd directly involves in marketing

problem and looks in to the depth of all the fallowing

problems.

1. Competitive market.

2. Price fluctuation

3. Consumer awareness

4. product advertisement

5. Location of the Firm

6. Size of the firm.

68

CHAPTER – 6

SURVEY FINDINGS

INTRODUCTION

MEANING OF SURVEY

OBJECTIVES OF THE SURVEY

LIMITATIONS OF THE SURVEY

ANALYSIS OF THE SURVEY

CONSUMER SURVEY FINDINGS

69

CHAPTER – 6

SURVEY FINDINGS

INTRODUCTION:

Today the consumer is the king of the market.

Consumer is the only judge, the reputation or otherwise of a

product is entirely dependent upon his attitude towards the

product so his satisfaction should be ultimate motto of the

producer and the marketer. Consumer’s interest should be

taking into co-ordination while taking marketing decision. It

is through consumer satisfaction only the producers and

marketers can improve their sales profit.

Many opinion will come when survey is made for

preference, improvements etc., of the product, but the

opinion of the consumer is important.

This report gives an analysis of opinion collected from

the customer regarding marketing of cement especially ACC

cement as against other brand.

MEANING OF SURVEY

Survey means going into department of respondent and

collecting his inner expression for the purpose of knowing his

attitude about which the survey is conducted.

Customer faced problems while dealing with the ACC

cement. There fore to study to their problems, Questionnaire

was prepared and given to the selected customer. The

70

selecting of customer is made on the basis of sampling

method and to those4 selected customer are given the

format of questionnaire and are requested to fill it on return

to us.

I have conducted a survey about 100 customers. Who

have their dealing with ACC cements in Shabareesh

agencies?

OBJECTIVES OF THE SURVEY

1. To know the general opinion of the customers about the

ACC cements.

2. To know the opinion of the customers about the

customer service rendered by agencies.

3. To know the effectiveness of the service provided by

the Shabareesh agencies in comparison with other

dealers.

4. To know whether the service provided by the agency is

satisfactory or not.

5. To know whether the service provided by the ACC is

improving in the recent years.

LIMITATIONS OF THE SURVEY

1. 100 number of respondents contacted.

2. Lack of prompt reply given by the customer or more

precisely biased reply given by the customer.

3. Hesitation among the customer to freely express their

views.

71

4. Lack of awareness among the customer about the

procedure carried out by the bank.

5. Indefinite and vague problems and suggestion provide

by the customer etc.,

ANALYSIS OF THE SURVEY

The analysis of the survey was done by dividing the

total respondents into different categories are on the basis of

income and occupation.

During the time of surveying the customer was not

clear about their demand nor they had clear comprehension

of their problems and definite in their suggestion for the

solving the problem. However the following problems were

found out at the time of the survey, and the same was to Acc

authorities. The ACC authorities were enough to give answer

to those problems faced by the customers.

CONSUMER SURVEY FINDINGS:

The total number of respondents interviewed had used

cement fully and it was observed that the ACC cement was

quite well known in the city.

72

Table No-1

Table showing the Distribution of cement consumer

interviewed in different areas in Shimoga district.

Regions No. Of

respondents

Percentage

Shimoga

Thirtahalli

Bhadravathi

Soraba

Sagar

Hosanagara

25

30

20

14

10

5

25%

30%

20%

14%

10%

5%

Total 100 100%

From the above table it is clear that major number if

respondents contacted from Thirtahalli and minimum from

Hosanagara.

73

Graph showing the Distribution of cement consumer

interviewed in different areas in Shimoga district

Shimoga24%

Thirtahalli29%

Bhadravathi 19%

Soraba13%

Sagar10%

Hosanagara5%

74

Table No-2

Table showing the distribution of cement consumer

according to brand and area interviewed.

REGION NUMBER OF

CONSUMERS

A.C.C INDIAN

CEMENTS

Grashim OTHERS

Shimoga

Bhadravathi

Sagara

Hosanagara

38

25

20

17

10

5

6

3

3

1

2

2

8

7

2

2

2

1

-

-

The table gives maximum details regarding the

respondents interviewed, i.e, and brand wise in different

parts in shimoga. In this table out of 100 respondents 38 in

Shimoga, 25 in Bhadravathi, 20 in Sagar, and 17 in

Hosanagar Respectively.

75

Graph showing the distribution of cement consumer

according to brand and area interviewed

76

Table No-3

Table showing the distribution of respondents under Income

groups.

INCOME GROUP

P/M

NUMBER OF

RESPONDENTS

PERCENTAGE

Below 10,000

10,000-15,000

15,000-25,000

Above 25,000

26

32

24

18

26%

32%

24%

18%

Total 100 100%

Out of the 100 respondents contacted 32% of them

from 10,000-15,000 which constitute the largest portion of

the respondents and the lowest group is of the income group

above 25,000 which is of 18% only.

NUMBER OF CONSUMERS

A.C.C INDIAN CEMENTS Grashim OTHERS

0

5

10

15

20

25

30

35

40

77

Graph showing the distribution of respondents under

Income groups.

Table No-4

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

0

5

10

15

20

25

30

35

26

32

24

18

78

Table showing consumer’s opinion about the ACC cement in

Shimoga as per their Occupation

OPINION BUSIN

ESS

MAN

% SALA

RIED

EMPL

OYES

% PRO

FES

SION

% OTH

RS

% TOTAL

BETTER

GOOD

SATISFACTORY

NOT GOOD

10

13

15

3

24

32

36

8

8

9

11

-

29

32

39

-

7

11

6

1

28

44

24

4

4

1

-

1

66

17

-

17

29

34

32

05

The above table shows that the classification of respondents

according to their occupation and their opinion of the service

towards ACC cements.

In the first group 41 respondents are Business man and

among 41 respondents, 10 respondents opinion that the

service provided by the ACC ltd is Better, 13 respondent’s

opinion is good and majority that is 15 respondents opinion is

satisfactory and the last very few that is 3 respondents

opinion is not bad.

In the second group 28 respondents are salaried

Employees. Among 28 respondents majority of respondent

that is 11 opinions is satisfactory, 8 of them is Better and 9

have respond good.

In third group, that is 25 respondents are from

Profession and it shows their opinion about service among 25

respondents 7 have respond Excellent, 11 have respond

good and only 1 responded Not bad.

79

In fourth group, that is 6 have responded who are

Engaged in some other occupations, among 6 respondents 4

responds that the service is Better, only 1 responded have

good opinion and another responded also have good opinion.

80

TABLE NO-5

Table showing the respondents using ACC cements as per

their occupations.

Uses Business

Man

Salaried

employees

Professio

n

Others Total

Used

Not used

11

21

13

12

8

10

10

15

42

58

Total 32 25 18 25 100

Above table show that out of 100 respondents 42

respondents were used ACC cements and 58 have not used

it. Out of 42 respondents 11 were from Business man, 13

from salaried employees, 8 from Profession and 10 from

other Occupations.

Among 58 Respondents who were not used ACC

cements, among them 21 from Business mans, 12 from other

occupations.

81

Graph showing the respondents using ACC cements as

per their occupations

Uses Business Salaried employees Profession Others

0

5

10

15

20

25

0

11

13

8

10

0 0

21

12

10

15

82

Table No-6

Table showing the distribution of cement consumers

according to their occupations.

Brands Business

man

Salaried

employees

Profession Others Total

Acc

Indian

Cement

Grashim

Others

12

8

6

10

10

6

8

4

14

8

4

6

8

5

7

9

44

27

25

29

TOTAL 36 28 32 29 100

The above table show that the first occupation group

i.e, Business mans are using 36 in that, 12 respondents are

using ACC, 8 were Indian Cements, 6 were Raashi and 10

were other Cements.

In second group i.e, 28 respondents are salaried

employees. Among them 10 were using ACC, 6 were using

Indian cements, 8 were using Grashim and 4 respondents

using other cements respectively.

In third occupation, 32 respondents are using cements,

among them 14 respondents using ACC, 8 respondents using

Indian cements, 4 were using Raashi and other respondents

are using other cements.

In fourth occupation i.e, 29 respondents are using

Cements, among them 8 were using ACC, 5 were using

Indian cements, 7 respondents were using Raashi and other

respondents were using other cements respectively.

83

Graph showing the distribution of cement consumers

according to their occupations

84

0

2

4

6

8

10

12

14

Acc Indian Cement Grashim Others

Business man Salaried employees Profession Others

Table No 7

Table showing the opinion of the consumers about ACC

cements from the following aspects.

Aspects Better Good Satisfactor

y

Not

bad

Total

Quality

Price

Demand

14

8

8

8

6

10

16

8

11

5

7

4

43

29

35

Total 28 22 35 15 100

According to the above table the consumer’s opinions

about ACC is very good. In the first aspect Quality 43

respondents were responds very well. 14 responds better, 8

responds good, 16 responds satisfactory and 5 responds Not

bad respectively.

85

In the second aspects Price is also in very good

condition. Among 29 respondents 8 responds better, 6

responds good, 8 responds satisfactory and 7 respondents

respond not bad.

In the third aspect demand is also in very good

condition. Among 35 respondents 8 responds Better, 10

responds Good and 11 responds satisfaction and 4 members

responds not bad.

86

Graph showing the opinion of the consumers about ACC cements from

the following aspects

Better 33%

Good19%

Satisfactory37%

Not bad12%

87

Table No-8

The table showing the consumers purchased cements from

different dealers in shimoga.

Dealers in ShimogaNumber of

consumers

Percentage

Sri Ganesh Steels

K.S. Narayana settee &

sons

Salamath enterprises

Sagar traders

36

20

28

16

36%

20%

28%

16%

Total 100 100%

From the above table 36 respondents were purchase

cements in Ganesh steels, 20 respondents were purchase

cement in KS.N. & sons, 28 respondents were purchase

cements in Salamath Enterprises and 16 respondents were

purchase in Sagar traders out of 100 respondents.

88

Table No-9

Table showing the consumers are come to know about

Shabareesh agencies from different aspects they are shown

below.

Aspects Number of respondents Percentage

Friends

Advertisement

Dealers

Contractors

26

38

18

10

28.26%

41.30%

19.56%

10.86%

Total 92 100%

From the above table consumers do purchase cement

according to Shabareesh agencies from the opinion of

Friends in 28%, and 38 consumers purchase cements by

seeing advertisement, and 19% consumers are purchase by

the suggestion of the dealers and 10% consumers are taking

the suggestion from the contractors.

89

Graph showing the consumers are come to know about

Shabareesh agencies from different aspects they are shown

below

Friends Advertisement Dealers Contractors

0

5

10

15

20

25

30

35

40

26

38

18

10

90

Table No-10

Table showing the factors which have influenced the

consumers to buy ACC cements they are shown in the table.

Factors Number of

respondents

Percentage

Price

Brand Image

Quality

Door Delivery

24

12

42

22

24%

12%

42%

22%

Total 100 100%

Above table showing that the factors influenced the

consumers to buy ACC cements by some important factors,

they are 24% in Price factor, 12% in Brand Image, 42% in

Quality of the product, and 22% were influenced by the

service provided by the Company.

91

Graph showing the factors which have influenced the

consumers to buy ACC cements they are shown in the table

92

SUMMARY OF OBSERVATION

In the present world the human being as a consumer

should have the knowledge of every product he uses. This is

because he should not become an easy pray for the seller

trap.

From this sample it was found that few respondents do

not know much about cement. They said that they do as

their contractor or Engineers say. But majority of them said

they purchased on their own.

According to the dealer, they said that it is its first or

craze that was driving people to buy popular brand cement.

It is said that previously people use to OK just for the cement

they were not bothered about the brand. But in the present

market the consumer consider the price preference.

It was also found that a few respondent of poor families

said that they wanted to build their houses with cement, but

due to high pricing of cement and which is going on

increasing they had to give up. We can also infer that ACC

cement has got a good scope for marketing in shimoga.

Price 24%

Brand Image12%

Quality42%

Door Delivery 22%

93

In shimoga, there are many cement dealers of almost

all the brands in the market. But the major brands of cement

according to the consumer are,

1. ACC

2. RAASHI

3. DIOMAND

4. BAGALKOT.

In Shimoga ACC is the first Cement sold in terms of

quality.

Thus ACC cement has got a good reputation and a

good place in the shimoga market. The number of dealers

for ACC cement is more than dealers for any other cement in

Shimoga.

This shows that ACC cement has got a great demand in

the Shimoga’s market.

94

95

CHAPTER – 7

SUGGESTIONS AND CONCLUSION

SUGGESTIONS

CONCLUSION

96

CHAPTER – 7

SUGGESTIONS AND CONCLUSION

SUGGESTIONS

ACC Ltd., are one of the oldest manufacturers of cement

in India. It has earned a good name in short period. It

should maintain and improve the same.

ACC Ltd, sales officer visit the dealer regularly that is once

in every month.

ACC Ltd should give credit facility to its dealers.

ACC Ltd should pay much attention towards warehousing

and transportation facilities.

ACC cement has earned a good name in the market. It

should maintain and improve the same its price is high than

the other cements. Some types consumers observe only

price of the product in this regard ACC fails to participate in

the cement market so product price will be maintain and

economic level.

A Sri Shabareesh agency has appointed As C & F agents

for their good selling performance. So these agencies

should maintain their good performance in selling of ACC

cements.

Sri Shabareesh should provide conveying service activities

to dealers.

97

Sri shabareesh agencies should adopted different media of

advertising in shimoga city in addition to the effort of the

manufacturer.

The prospective customer should be given promotional

benefit. There fore promotional efforts are to be taken in

effect continuously so that as prospective customer will

develop a linking towards the product.

Sri Shabareesh agencies should have sufficient vehicle to

deliver the cement bag to the dealers who comes from

outside villages.

Sri Shabareesh Agencies should give regular Service.

CONCLUSION

The finding of the survey is enough proof to show that

ACC cements ranks high in quality, composition etc., It is

observed that ACC cement has a maintained better product

image among the person who have used it and are using it.

The company has also vast network of salesmanship no

doubt these things will have a long way in improving not only

product image but also the corporate image. But in

competitive field one should not satisfy himself with present

performance. In order to maintain higher competitive

efficiency there should be continuous product planning and

market improvement.

ACC cement producer and their dealers in shimoga city

may consider the preference analysis in the report and

98

suggestions given in the report for achieving higher

standards of marketing performance in the future.

Annexure

CONSUMER QUESTIONNAIRES

I am a student of final year BBM, Govt. First Grade College,

Shimoga. As apart of my BBM course. I have selected

“MARKETING OF ACC CEMENTS” A case study of Shabareesh

agencies, Shivamogga, kindly fill it up the questionnaire and give

suggestion for the study. The information supplied by you will be kept

conditional and will be used for only academic purposes

Your Sincerely

PARAMESHWARAPPA H.S

CONSUMER QUESTIONNAIRES

1. Name :

2. Address :

3. Occupation :

4. Annual Income:

a) Below 10,000 [ ] b) 10,000-15,000 [

]

99

c) 15,000-25,000 [ ] d) Above 25,000 [

]

100

5. Have you ever purchase cement?

a) Yes [ ] b) No [ ]

6. Which brand of cement do you purchase?

a) A.C.C. [ ] b) Indian Cement [ ]

c) Raashi [ ] d) Others [ ]

7. If you purchase A.C.C. what is your opinion?

1. Quality

a) Better [ ] c) Satisfactory [ ]

b) Good [ ] d) Not bad [ ]

2. Price

a) High [ ] c) Satisfactory [ ]

b) Low [ ] d) Not bad [ ]

3. Demand

a) Better [ ] c) Satisfactory

[ ]

b) Good [ ] d) Not bad

[ ]

8. Where do you purchase cement?

a) Shabareesh agencies [ ]

b) K.S.Narayana settee & sons [ ]

c) Salamath Enterprises [ ]

d) Sagar Traders [ ]

101

9. If you purchase in Shabareesh agencies, how do you come

to know about the Shabareesh agencies?

a) Friends [ ] c) Advertisement [ ]

b) Dealers [ ] d) Contractors [ ]

10. What are the factors which have influenced to buy ACC

cement?

a) Price [ ] c) Brand Image [ ]

b) Quality [ ] d) Door Delivery [ ]

11. Do you get any facilities?

a) Yes [ ] b) No [ ]

12. What is your opinion about regarding the regularity

supply from Sri Shabareesh agencies

a) Regular [ ] b) Irregular [ ]

c) Not bad [ ]

13. Will you recommend ACC cements to others?

a) Yes [ ] b) No [ ]

14. Are you satisfied with the service offered by the dealers?

a) Yes [ ] b) No [ ]

15. Any suggestions:

- - - - - - - - - - - - - - - - - - - -

Date:

Place: Signature

102

103

BIBLIOGRAPHY

Marketing Management By: Sherleker

Marketing Management By: Philep Kottler

Marketing and Salesmanship By: B.S Raman

News papers Business Line

Times of India

www.google.com

www.accindia.com

104