ACC Limited

RESEARCH INSIGHT – 2
Company 2 : ACC Ltd
GENERAL OVERVIEW –
ACC Limited (incorporated in 1936), a member of the LafargeHolcim Group, is

principally engaged in the business of manufacturing and selling of Cement and
Ready Mix Concrete. The Company has manufacturing facilities across India and
caters mainly to the domestic market.
Product Portfolio
The products include: Cement, Ready Mix Concrete, Construction Chemicals and
Dry Mix Range - For Retail Customers & For Institutional Customers
Revenue Breakup 2020
1. By Product
Cement - 90%
Ready Mix Concrete (RMX) - 7%
Clinker - 1%
Others - 2%
2. By Business
Retail (B2C) - 79%
Wholesale (B2B) -21%
Manufacturing Facilities 2021
The company has a manufacturing capacity of ~ 34.5 MMTPA from its 17 cement
plants and 79 Ready mix concrete plants across India.
The company also operates 8 captive power plants for power requirements of its
cement plants.
Capacity Utilization
The company recorded capacity utilization of ~72% in 2020 as compared to 84%
in 2019. Its average capacity utilization for last 5 years was ~79%.
Network
The company's distribution network includes ~56,000 channel partners/ retail
points.
Key Developments in 2020
Ready mix concrete launched value added solutions: ACC Thermofillcrete, ACC
Suraksha NX and ECOPact – the Green Concrete.
It also initiated an AI-powered supply chain management platform ‘Blue Yonder’
to enable better predictability, prevent and resolve disruptions across business.
Competition Commission of India
The Competition Commission of India, on grounds of alleged cartelisation, vide its
order dated August 31, 2016 had imposed a penalty of 1,148 Cr on the Company.
Against the judgment of NCLAT, the Company appealed before the Hon’ble
Supreme Court, which by its order dated October 05, 2018 had admitted the appeal
and directed that the interim order passed by the Tribunal in this case will continue
in the meantime.
Cost savings
In 2020, there were cost savings of Rs 46/tonne due to: Higher usage of AFR in
fuel mix, Warehouse space optimisation, Network efficiencies , etc.
Future Capex
Capacity addition - 2.7 MT of clinker and 4.8 MT of cement to be added over the
coming years.
Greenfield expansion in Ametha and associated grinding units on track .
Commissioning by Q2 2022. Efficiency projects like Waste Heat Recovery are on
track.
Holding Company
Ambuja Cements Limited (50%) is the holding Company of ACC Ltd and
LafargeHolcim Ltd is the Parent company for the Group.
ACC and Ambuja cement together have 12-13% capacity share in the Indian
cement market.
History
ACC was formed in 1936 when ten existing cement companies came together
under one umbrella in a historic merger. In 1947, India’s first entirely indigenous
cement plant was established in Bihar. Later in 1965, ACC started manufacturing
Portland Pozzolana Cement. In 1973, the co. took over The Cement Marketing
Company of India (CMI). In 2005, ACC became part of the Holcim Group of
Switzerland. Subsequently, in 2015, Holcim and Lafarge came together in a
merger to form LafargeHolcim – the global leader in building materials and
solutions.
SHAREHOLDING PATTERN –
Holder’s Name No. of Shares %Share Holding
No Of Shares 187787263 100%
Promoters 93984120 50.05%
Foreign Institutions 22735065 12.11%
N Banks Mutual Funds 17610840 9.38%
Central Govt 287815 0.15%
Others 5564807 2.96%
General Public 17992250 9.58%
Financial Institutions 21201366 11.29%
Foreign Promoter 8411000 4.48%
Promoters -
Ambuja Cements Limited
Holderind Investments Ltd

Endeavour Trade And Investment Limited
MANAGEMENT TEAM –
Mr. Karan Adani

Non Executive and Non Independent Director
Mr. Karan Adani holds a degree in economics from Purdue University, USA. He is
technologically savvy with a global outlook and believes in setting the highest
benchmarks in all areas of business. He is responsible for the strategic development
of the Adani Group and overlooks its day to day operations. He aims to build the
Adani Group’s identity around an integrated business model, backed by his sound
understanding of new processes, systems and macro-economic issues, coupled with
his growing experience.
Mr. Vinay Prakash
Non Executive and Non Independent Director
Mr. Vinay Prakash is the one among most recognized leaders in Energy,
Infrastructure, Metal & Minerals Sector.
Mr. Prakash holds B.Tech (Mechanical), PG Diploma in Operations/Material
Management, MBA (Finance) and is also pursuing PhD from Indian Institute of
Technology-Indian School of Mines (IIT-ISM) on Developing Sustainable Mining
Practices.
Prior to joining Adani Group in 2001, he worked with Aditya Birla Group for eight
years.
Mr. Ajay Kapur
Whole-Time Director and Chief Executive Officer
Mr. Kapur is an economics graduate from St. Xavier’s University, Mumbai and an
MBA from K.J. Somaiya Institute of Management. He has also attended the
Advanced Management Programme at The Wharton School of the University of
Pennsylvania. Mr. Kapur has been actively involved in various industry forums
including CII, FICCI and ASSOCHAM.
Mr. Ajay Kapur has 25+ years of experience in the cement and construction, power
and heavy metals sector. He joined Ambuja Cement in 1993 as an Executive
Assistant to the then Managing Director.
Mr. Sandeep Singhi

Non Executive and Independent Director
Mr Singhi is Science Graduate and Law Graduate by qualification and is Senior

Partner of Singhi & Co., Advocates & Notary, Ahmedabad. He has over 27 years of
experience in legal field. He is enrolled as an Advocate with the Bar Council of
Gujarat since 1989 and also as a member of the International Bar Association.
STRENGTHS, WEAKNESSES, OPPORTUNITIES &

THREATS (SWOT) –
ACC Limited Strengths

The strengths of ACC Limited looks at the key aspects of its business which gives it
competitive advantage in the market. Some important factors in a brand's strengths
include its financial position, experienced workforce, product uniqueness &
intangible assets like brand value. Below are the Strengths in the SWOT Analysis of
ACC Limited :
1. ACC has been ranked India’s most admired company in the cement sector.
2. It also received the Golden Peacock Environmental Management award
3. One of the top cement and construction companies based out of India
4. ACC also received Green Manufacturing award and many other rewards
5. ACC has a vast distribution network of 9,000 dealers in the country.
6. Operations since last 80 years have made ACC a strong brand

7. It has a strong efficient workforce of around 10,000 employees.
ACC Limited Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can
improve to increase its position further. Certain weaknesses can be defined as
attributes which the company is lacking or in which the competitors are better. Here
are the weaknesses in the ACC Limited SWOT Analysis:
1. ACC has done lesser branding activities as compared to its competitors.
2. ACC as a brand is famous only in India, so it not known globally as compared to

other brands.
ACC Limited Opportunities
The opportunities for any brand can include areas of improvement to increase its
business. A brand's opportunities can lie in geographic expansion, product
improvements, better communication etc. Following are the opportunities in ACC
Limited SWOT Analysis:
1. ACC can leverage the Indian market leadership and expand to other parts of the
world.
2. It can do extensive branding in the country that can help them increase brand recall
and thus help the brand to grow as a whole
3. Extended services in the field of construction
ACC Limited Threats

The threats for any business can be factors which can negatively impact its business.
Some factors like increased competitor activity, changing government policies,
alternate products or services etc. can be threats. The threats in the SWOT Analysis
of ACC Limited are as mentioned:
1. Many local players offering low cost products are one of the threats for the ACC
cements and company.
2. It also faces strong competition from global players in Indian markets.
ACC Limited Competitors –
There are several brands in the market which are competing for the same set of
customers. Below are the top 4 competitors of ACC Limited:
1. Ambuja Cements
Ambuja Cements Ltd (Founded in 1993) is one of India’s leading cement

manufacturers, with a presence in 80 countries, and a focus on cement, aggregate
and concrete. It is a part of Switzerland-based LafargeHolcim Limited, a global
conglomerate with a 70-country presence
2. Ultratech Cement
Ultratech Cement is the largest cement company in India and 3rd largest cement
company in the world (ex-china) and is the largest cement manufacturer in India. It is
also the only cement producer outside of China to have 100+ MnTPA of
manufacturing capacity in a single country.
4. Shree Cements
Shree Cement is engaged in the manufacturing and selling of cement and cement
related products and is one of the lowest cost producers in the country. It is
the 3rd largest cement producer in India with an installed capacity of 43.4 MTPA.
Conclusion –
ACC Limited is one of the Country’s top cement producers. We discovered that
ACC Limited has a unique track record of innovative research, product development,
and specialized consultancy services. It has a strong and extensive network
infrastructure, but brand recognition and marketing efforts are missing.
ACC Limited focuses on offering a lot of offline marketing support to its customers.
Thus to conclude it can be said that ACC Limited has its branches spread all over
India ACC Limited company products are profitable not only in India but also in the
whole world. While talking about digital marketing, the social media presence of
ACC Limited is nearly equal to null. They have not taken much effort to market their
services and products so that it reaches the audience.
***

ACC Limited

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RESEARCH INSIGHT – 2

Company 2 : ACC Ltd

ACC Limited (incorporated in 1936), a member of the LafargeHolcim Group, is

Holder’s Name No. of Shares %Share Holding

No Of Shares 187787263 100%

Promoters 93984120 50.05%

Foreign Institutions 22735065 12.11%

N Banks Mutual Funds 17610840 9.38%

Central Govt 287815 0.15%

Others 5564807 2.96%

General Public 17992250 9.58%

Financial Institutions 21201366 11.29%

Foreign Promoter 8411000 4.48%

Holderind Investments Ltd

Mr. Karan Adani

Mr. Vinay Prakash

Non Executive and Non Independent Director

Mr. Ajay Kapur

Whole-Time Director and Chief Executive Officer

Mr. Sandeep Singhi

Mr Singhi is Science Graduate and Law Graduate by qualification and is Senior

STRENGTHS, WEAKNESSES, OPPORTUNITIES &

ACC Limited Strengths

2. It also received the Golden Peacock Environmental Management award

6. Operations since last 80 years have made ACC a strong brand

ACC Limited Weaknesses

1. ACC has done lesser branding activities as compared to its competitors.

2. ACC as a brand is famous only in India, so it not known globally as compared to

ACC Limited Opportunities

3. Extended services in the field of construction

ACC Limited Threats

ACC Limited Competitors –

Ambuja Cements Ltd (Founded in 1993) is one of India’s leading cement

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