ACC Limited, Bangalore

By Abhinav kp

About the company

• ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. • ACC's operations are spread throughout the country with 17

modern cement factories, more than 50 Ready mix concrete plants, 21 sales offices, and several zonal offices. • It has a workforce of about 9,000 persons and a countrywide

distribution network of over 10,000 dealers.

•  It's registered office is called Cement House• The management control of company was taken over by Swiss

cement major Holcim in 2004.• On 1 September 2006 the name of The Associated Cement

Companies Limited was changed to ACC Limited.

Board of Directors

Mergers & Acquisitions

• In 1936 ten cement companies belonging to Tatas, Khataus, Killick Nixon and F E Dinshaw groups merged to form a single entity, The Associated Cement Companies• The management control of company was taken over by Swiss

cement major Holcim in 2004.• On 10 July 2015, Lafarge and Holcim completed the merger and

created LafargeHolcim.On 15 July 2015, the new LafargeHolcim Group was officially launched

Company products..

• OPC 43

• OPC 53

• Portland Slag Cement• Concrete plus

Organizational structure

Departments of the company

• CUSTOMER SERVICE DEPARTMENT (CSS)• FINANCE DEPARTMENT (FICO)• MARKETING DEPARTMENT• LOGISTICS DEPARTMENT(LOG)• MI DEPARTMENT (MTO)• SALES DEPARTMENT• ADMIN DEPARTMENT

CUSTOMER SERVICE DEPARTMENT (CSS)

• The main objective of the customer service department is to understand the various problems which is faced by their customer, home builders and engineers and trying to provide the best remedy available for them • Customer Services Cells manned by qualified Civil Engineers

who interact with customers to assess their needs and problems, offer advice before and after sales including educating users and customers on correct usage of cement and concrete and good construction practices

SU CSS

AO BLR CSI

CSE

CSI

CSI

AO MYSR CSI

CSE

CSI

CSI

AO MLORE CSI

CSE

CSI

CSI

CHEIF MANAGERcustomer support

MANAGER

AO BLS CSI – Area office Bangalore Customer Service In charge AO MYSR CSI – Area office Mysore Customer Service In charge AO MLORE CSI – Area office Mangalore Customer Service In chargeCSE – Customer Service Executive

FINANCE DEPARTMENT

 • Finance is referred to as the life blood of a business.• Being a cement company huge amounts of investment is

required for the company • ACC has registered consistent improvement in its financial

and overall economic performance. The company’s operations are aligned to maximize shareholders value.

CHEIF FINANCIAL OFFICER

ACCOUNTS PAYABLE OFFICER

ACCOUNTS RECEIVABLE

OFFICER

FINANCIAL MANAGER

TAXATION OFFICER

ASSISTANT FINANCIAL MANAGER

Functions of a finance department

• To Prepare the Budget • Financial Management • Management of Taxes • Merger or Acquisition decisions

MARKETING DEPARTMENT

• ACC’’s brand name is synonymous with cement and enjoys a high level of equity in the Indian market. • ACC’s brand name is maintained and developed by a well-

designed marketing team.

Functions of Marketing Department

• SUPPLY CHAIN MANAGEMENT• ADVERTISEMENT ACTIVITIES :• National team • State level sales unit team

• MARKETING INTELLIGENCE • SALES PROMOTION • ACC Lakshya‖

LOGISTICS DEPARTMENT

• ACC have strong and well build logistic team• The main function of the logistics department is to reduce the

logistic cost• There are two types of freight:• PRIMARY FREIGHT – From plant to ware house• SECONDARY FREIGHT – From ware house to dealer

LOGISTICS HEAD

PLANT MANAGER

PLANTS UNITS

MANAGER

REGIONAL LOGISTICS

SALES UNIT LOGISTICS

SALES UNIT MANAGER

A.O 1

A.O 2

A.O 3

LOGISTICS MANAGER

ASSISANT LOGISTICS MANAGER

AO – area officer

FUNCTION PERFORMED BY LOGISTICS DEPARTMENT

• Ensuring all the requirements of the customers are met on time in an efficient and safe manner. • To coordinate with third party logistics (3PLs).• To ensure that there is a safe and timely dispatch of goods. • To create and maintain customer support.• To ensure timely supply and payment of goods and reduce

inventories.

STOCK KEEPING BY LOGISTICS DEPARTMENT

• Safety stock (also called buffer stock) : 500 tonnes • MINIMUM STOCK: 5-6 days stock . Which is roughly around

1000 tonnes• MAXIMUM STOCK:

MI DEPARTMENT

• MI department or Market Information department is one of the most important department of the organization.• The main duty of this department is to gather information

regarding the various market conditions and the strategies the competitors are going to take in order to overcome the company so that the company can formulate better plans so that they are able to retain their customers.

SALES UNIT

HEAD

IO IO IO

MI dept CMIO

SALES DEPARTMENT

• The main function of a sales department is to effect sales. • It is concerned with the transfer of ownership or merchandize

on terms satisfactory to both the buyer and seller. This has to be done at the lowest possible cost.• The basic objective is the achievement of profit through

service

SALES HEAD

A U BLR

DO

DO

DO

A U BLR (R)

DO

DO

DO

A U MYSR

DO

DO

DO

AU MLRE

DO

DO

DO

MEDIUM BUYER

BLR CITY

Functions of Sales Department

• The main duty of this department is to maintain the sales of the company by keeping constant contact with the dealers by making them meet their monthly targets• Every dealer / authorized retailer has a monthly target which

is kept by the sales department and it is their duty to make sure that the target is being met

SMX/ CUSTOMER EXCELLENCE :

• Customers being the kings of the market, they should be handled with care before and after the purchase of the commodity in order to retain them.• In today’s customer-oriented business environment, "people

skills" are critical for personal and organizational success. How one handle their customers can directly affect their individual goals as well as their team’s and company’s performance

CE HEAD

ASSSTANTS

DO DO

DO

ASSISTANTS

DO

DO

DO

ASSISTANTS

DO

DO

DO

CE COACH

TASK GIVEN TO ME

NATURE OF TASK

• TO supply Questionnaire to various dealers of ACC limited so as to have a better understanding of the views and needs of the dealers

Interpretation of data

• Question 1 : what is the profit generated from the sale a bag of Acc cement with Comparison with other companies ?

ACCB IR

LAPR IY

AZUAR I

RAMCO

DALMIAR

MAHAGOLDKCP

ICL

JAY PEE

0

5

10

15

20

25

30

35

PROFIT ATTAINED FROM SALE OF CEMENT IN EAST & SOUTH BANGLORE

PROFIT ATTAINED FROM SALE OF CEMENT IN EAST & SOUTH BANGLORE

Most suitable cement which can be used for RCC work

18%

32%29%

21%

RCC WORK

RAMCO ACC

PRIYA BIRLA

Widely used cement for plastering

24%

38%

9%

18%

12%

PLASTERING

PRIYA ACC

BIRLA RAMCO

KCP

PHYSICAL PURCHASE vs PHONE PURCHASE

25%

75%

PHYSICAL PURCHASE VS PHONE PURCHASE

PHYSICALPHONE

FINDINGS

• Out of the ranking given by the customers the most important rating given by all of them was for the companies name , timely delivery of the product , Regular supply , dealer discipline and packaging.• A few of the dealers is not satisfied by the sales force support , and the

discount facilities given by the company .• Almost all the dealers visited complained saying that there wasn’t any Top

management visit made by the company .• All the dealers are highly satisfied with the product Quality which is

provided by the company

CONCLUSION:

• The company should focus more on the sales force support which they provide to their dealers • The company should make sure that their top management visits the

respective dealers so that the dealers would have the feeling that the company is always trying to keep in touch with them , so that their views and ideas can also be taken into consideration .• The company should also make sure that they provide proper training to

their dealers with regards to the proper ways for the use of commodity.

STRENGTHS

• EFFICIENT WORKFORCE • ACC LIMITED has a strong, efficient and a dedicated workforce of

around 10,000 employees• VAST NETWORK AND UNINTERRUPTED SUPPLY CHAIN• ACC has a large supply chain managed by an energetic sales force

from an extensive spread of sales offices spanning India, Countrywide network of highly channel partners comprising more than 9000 dedicated dealers complimented by a chain of retailers.

• PRODUCTS ASSURING QUALITY :• ACC promotes the use of blended cements which are environment

friendly and acknowledged for their superior and unmatched durability as compared to ordinary cements.

• MANUFACTURING EXCELLENCE• ACC strive to retain their position as India's foremost manufacturer of

cement and concretes with a countrywide bouquet of 60 modern cement factories

WEAKNESS

• PRICE SENSITITVITY :• ACC has the highest sensitivity to cement prices and its fragmented

capacity results in not being able to influence the price in any significant manner

• PRICE FOLLOWER :• ACC is a price follower despite being the largest cement manufacturer in

the country. It’s sensitivity to prices ensures that it can never lower prices to gain market share without hurting itself more than the competitor.

• Lower Cost – the impact is not visible :• The decrease in the cost of production does not show much impact in

ACC’s cost structure. This is basically due to the high power and fuel cost. The fuel use in ACC plants is basically coal and hence the cost spend on power and fuel is inevitable. As a result of high cost of power and fuel, the decrease in cost from any source is not visible in the cost structure

OPPORTUNITIES

• ROAD CONSTRUCTION WILL BOOST DEMAND : • The Government has set the target of constructing 20 km. of national

highways on daily basis and to trigger these changes projects have been undertaken via public private partnerships (PPPs)

• HOUSING SECTOR BOOM :• Higher demand and greater affordability due to lower interest rates

and tax breaks is expected to trigger an unprecedented housing boom. The housing finance industry has estimated a latent demand of 33 million houses and forecasts a growth of 50 per cent per annum till 2020. With the housing sector accounting for 50 per cent of the current cement demand, this boom is expected to propel even higher cement demand.

• LOW PER CAPITA CONSUMPTION   :• INDIA being a developing company has a Low per capita consumption

of 176kg when compared to a developed country having a per capita consumption of 256kg. This leads to the more utilisation of cement for the infrastructural facilities of a country in order to become a developed country.

 

THREATS• IMPORT DUTY :• Gypsum being one of the main components for the production of

cement.  It is imported, due to low quality of gypsum in India, which impact on price of production by paying the import duty.

• CURRENCY RISKS :• India being the 2nd most producer of cement in the world, most of the

cement produced is exported to other countries. The change in the monetary value of Indian currency adversely effects the cement as the cost of exporting increases

• COAL CESS :• Introduction of cess on coal in the recent budget is proving to be having

a multiplier effect across board in terms of cost rise. Cement companies claims that production cost will have to rise because of this.