summer project report acc

7/29/2019 summer project report acc

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INTRODUCTION

Indian cement industry is one of the key industries amongst various old

economy industries which have witnessed up and down cycles along with

the general economic trend in the past. However as the Indian economyhas gathered its momentum in the last couple of years the fortune of this

industry had long swing from being unfavorable demand and supply

scenario to burgeoning demand prospects. Though the industry is not a

glamorous one it is worth noticing that India is the world’s second largest

cement producing country after china.

Cement being one of the key construction material used in creation of

infrastructure has witnessed a robust growth of more 8.5% in volume terms

during the third quarter of current financial year and about 10% rise indispatches in the first nine months of the year mainly on the back of

growing investment in infrastructure projects.

Cement Industry in India is on a roll at the moment. Driven by a booming

real estate sector, global demand and increased activity in infrastructure

development such as state and national highways, the cement industry has

witnessed tremendous growth. Production capacity has gone up and top

cement companies of the world are vying to enter the Indian market,

thereby sparking off a spate of mergers and acquisitions. Indian cement

industry is currently ranked second in world.

The origins of Indian cement industry can be traced back to 1914 when the

first unit was set-up at Porbandar with a capacity of 1000 tonnes. Today

cement industry comprises of 125 large cement plants and more than 300

mini cement plants. The Cement Corporation of India, which is a Central

Public Sector Undertaking, has 10 units. There are 10 large cement plantsowned by various State Governments. Cement industry in India has also

made tremendous strides in technological upgradation and assimilation of

latest technology. Presently, 93 per cent of the total capacity in the industry

is based on modern and environment-friendly dry process technology. The

induction of advanced



technology has helped the industry immensely to conserve energy and fuel

and to save materials substantially. Indian cement industry has also

acquired technical capability to produce different types of cement likeOrdinary Portland Cement (OPC), Portland Pozzolana Cement (PPC),

Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid

Hardening Portland Cement, Sulphate Resisting Portland Cement, White

Cement etc. Some of the major clusters of cement industry in India are:

Satna (Madhya Pradesh), Chandrapur (Maharashtra), Gulbarga

(Karnataka), Yerranguntla (Andhra Pradesh), Nalgonda (Andhra Pradesh),

Bilaspur (Chattisgarh), and Chandoria (Rajasthan).

Cement industry in India is currently going through a consolidation phase.Some examples of consolidation in the Indian cement industry are: Gujarat

Ambuja taking a stake of 14 per cent in ACC, and taking over DLF

Cements and Modi Cement; ACC taking over IDCOL; India Cement taking

over Raasi Cement and Sri Vishnu Cement; and Grasim's acquisition of the

cement business of L&T, Indian Rayon's cement division, and Sri Digvijay

Cements. Foreign cement companies are also picking up stakes in large

Indian cement companies. Swiss cement major Holcim has picked up 14.8

per cent of the promoters' stake in Gujarat Ambuja Cements (GACL).Holcim's acquisition has led to the emergence of two major groups in the

Indian cement industry, the Holcim-ACC-Gujarat Ambuja Cements combine

and the Aditya Birla group through Grasim Industries and Ultratech

Cement. Lafarge, the French cement major has acquired the cement plants

of Raymond and Tisco. Italy based Italcementi has acquired a stake in the

K.K. Birla promoted Zuari Industries' cement plant in Andhra Pradesh, and

German cement company Heidelberg Cement has entered into an equal

joint-venture agreement with S P Lohia Group controlled Indo-Rama

Cement.



OVERVIEW OF THE ORGANISATION

COMPANY PROFILE

ACC Limited is India’s foremost cement manufacturer with a countrywide

network of factories and marketing offices. Established in 1936, ACC has

been a pioneer and trend-setter in cement and concrete technology.

Among the first companies in India to include commitment to environment

protection as a corporate objective, ACC has won accolades for

environment friendly measures taken at its plants and mines, and has also

been felicitated for its acts of good corporate citizenship. ACC is the most

preferred cement brand name in India. ACC is now part of the worldwide

Holcim Group.

ACC (ACC Limited) is India's foremost manufacturer of cement andconcrete. ACC's operations are spread throughout the country with 16modern cement factories, more than 40 Ready mix concrete plants, 21sales offices, and several zonal offices. It has a workforce of about 9,000persons and a countrywide distribution network of over 9,000 dealers.

Since inception in 1936, the company has been a trendsetter and importantbenchmark for the cement industry in many areas of cement and concretetechnology. ACC has a unique track record of innovative research, product

development and specialized consultancy services. The company's variousmanufacturing units are backed by a central technology support servicescentre - the only one of its kind in the Indian cement industry.

ACC has rich experience in mining, being the largest user of limestone. Asthe largest cement producer in India, it is one of the biggest customers of the domestic coal industry, of Indian Railways, and a considerable user of the country’s road transport network services for inward and outwardmovement of materials and products.

Among the first companies in India to include commitment to environmentalprotection as one of its corporate objectives, the company installedsophisticated pollution control equipment as far back as 1966, long beforepollution control laws came into existence. Today each of its cement plantshas state-of-the art pollution control equipment and devices.



ACC plants, mines and townships visibly demonstrate successfulendeavors in quarry rehabilitation, water management techniques and‘greening’ activities. The company actively promotes the use of alternativefuels and raw materials and offers total solutions for waste managementincluding testing, suggestions for reuse, recycling and co-processing.

ACC has taken purposeful steps in knowledge building. We run twoinstitutes that offer professional technical courses for engineeringgraduates and diploma holders which are relevant to manufacturing sectorssuch as cement. The main beneficiaries are youth from remote andbackward areas of the country.

ACC has made significant contributions to the nation building process byway of quality products, services and sharing expertise. Its commitment to

sustainable development, its high ethical standards in business dealingsand its on-going efforts in community welfare programmers have won itacclaim as a responsible corporate citizen. ACC’s brand name issynonymous with cement and enjoys a high level of equity in the Indianmarket. It is the only cement company that figures in the list of Consumer Super Brands of India.

VISION

To be one of the most respected companies in india;

recognized for challenging conventions and

delivering on our promises.

VALUES

Strength

Performance

Passion



AWARDS & ACCOLADES

ACC was the first recipient of ASSOCHAM’s first ever National Award for outstanding performance in promoting rural and agricultural developmentactivities in 1976. Decades later, PHD Chamber of Commerce andIndustry selected ACC as winner of its Good Corporate Citizen Award for the year 2002. Over the years, there have been many awards andfelicitations for achievements in Rural and community development,Safety, Health, Tree plantation, afforestation, Clean mining, Environmentawareness and protection.

Other prominent awards won by us over the years comprise somecoveted ones conferred by organisations of repute.

Awards & Accolades

National Award for Excellence in Water Management byConfederation of Indian Industry (CII)

Outstanding Corporate Vision, Triple Impact - Business Performance Social & Environmental Action and Globalisation for 2009-10 from Federation of Indian Chambers of Commerce andIndustry

Asia Pacific Entrepreneurship Award in two categories, GreenLeadership and Community Engagement by Enterprise Asia.

Indira Priyadarshini Vrikshamitra Award --- by The Ministry of Environment and Forests for "extraordinary work" carried out in thearea of afforestation.

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 ordinaryefforts in protection of Environment and mineral conservation in thelarge mechanized mines sector.

Indira Gandhi Memorial National Award - for excellent



performance in prevention of pollution and ecological development

Excellence in Management of Health, Safety and Environment : Certificate of Merit by Indian Chemical Manufacturers Association

Good Corporate Citizen Award - by PHD Chamber of Commerceand Industry

FIMI National Award - for valuable contribution in Mining activitiesfrom the Federation of Indian Mineral Industry under the Ministry of Coal.

Rajya Sthariya Paryavaran Puraskar - for outstanding work inEnvironmental Protection and Environment Performance by the

Madhya Pradesh Pollution. Control Board.

National Award for Fly Ash Utilisation - by Ministry of Power,Ministry of Environment & Forests and Dept of Science &Technology, Govt of India - for manufacture of Portland PozzolanaCement.

CORPORATE SOCIAL RESPONSIBILITY

Today ACC define Corporate Social Responsibility as the way acompany balances its economic, social and environmental objectives whileaddressing stakeholder expectations and enhancing shareholder value.

But ACC has undertaken social volunteering practices almost from itsinception, – long before the term corporate social responsibility was coined.The company’s earliest initiatives in community development date back tothe 1940's in a village on the outskirts of Mumbai while the first formalVillage Welfare Scheme was launched in 1952. The community living

around many of our factories comprises the weakest sections of rural andtribal India with no access to basic amenities.



BOARD OF DIRECTORS Mr N S Sekhsaria

Chairman

Mr Paul Hugentobler

Deputy chairman

Mr.kuldip karura

Chief executive officer & managing director

Mr.S.M.Palia

Mr.Markus Akermann

Mr.M.L.Narula

Mr.D.K.Mehrotra

Mr.Shailesh Haribhakti

Mr.Aidan Lynam

Mr.Sushil Kumar Roongta

PRODUCT

ACC’S range of cement and blended cement are marketed through a

network of 11 regional marketing office,16 area offices and 160

warehouses. This is backed by countrywide network of over 9000 dealers.

Acc has franchchising agreement for cement marketing along with cement

company goa.

Ordinary portal cement

Composite cement

National brands

43 grade cement



FUNCTIONAL DEPARTMENTS

Functional departments of the company are classified as follows:

Human resource

Production

Finance

Information system

HUMAN RESOURCE DEPARTMENT

ACC has a large workforce of about 9,000 people, comprising experts invarious disciplines assisted by a dedicated workforce of skilled persons.

ACC employees, referred to as the ACC Parivar, come from all parts of the

country and belonging to a variety of ethnic, cultural and religiousbackgrounds. ACC employees display a strong sense of loyalty to theCompany and their special stellar qualities as ‘value-adding’ human capitalare well known in the industry.

ACC has clearly stated guidelines concerning recruitment, termination,career advancement, performance appraisal, professional and employeeethics and code of conduct. The Company’s personnel policies andprocesses enshrine equal opportunities to all and non-discrimination withregard to gender, caste, creed, ideology or other opinion, whether social,political or religious. Also ensured is a due process for employeeconsultation and participation in organizational development and policyformulation.

FUNCTIONS

Recruitment

Performance management

Training & development

Employee satisfaction

Employee welfare



RECRUITMENT

Recruitment in ACC is a very fair and transparent process with adequate

opportunities to look for suitable candidates internally as well as from

outside. Applicants are generally invited on the basis of specificadvertisements in newspapers and websites. A Committee of officers

called the Central Recruitment Committee handles the entire recruitment

process comprising screening of applications, preliminary short-listing,

interviews and final selection. Every attempt is made to make the selection

process as objective as possible by incorporating tests of competence. In

some cases, outside consultants are retained. All decisions of the

recruitment committee are recorded in respect of each candidate.

Candidates are informed of their short-listing and selection immediately

after the interview or at the earliest thereafter.

PERFORMANCE MANAGEMENT

The Company’s performance management system is in itself a benchmark

that provides ample opportunities and motivational incentives to employees

so as to reward and retain good talent within the Company. These

incentives include Performance Linked Incentives, Good Work Awards,

Letters of Appreciation, Special Increments, Promotions, Nomination to

external training programmers in India and abroad, public felicitation and

appreciation. Some plants have Best Employee and Employee of the

Month Awards and recognition. Competent employees and those who

display aptitude are invited to become Trainers themselves and receive

Train the Trainer facilitation.

TRAINING & DEVELOPMENT

The new Performance Management System incorporates a process called

Competency Assessment and Training and Developmental Needs wherein

appraisers are specifically called upon to identify and assess training needs

of employees at specific intervals that do not coincide with Performance

Appraisals. This is so that training needs can be assessed objectively.



Training is imparted to take care of an individual’s career development as

well as functional and skill enhancement. Competency and Development

training inputs include Skill and general performance enhancement,

communication skills and Career development. Functional training needs

are identified and conducted by functional departments while Corporate HRorganizes competency and developmental inputs.

EMPLOYEE WELFARE

Employee welfare receives prime attention at ACC. We have several

schemes for general welfare of employees and their families. These cover

education, healthcare, retirement benefits, loans and financial assistance

and recreation facilities.

ACC townships have excellent schools that are often the best in the district.Education at these schools is subsidized for employees’ wards. We offer attractive scholarship allowances for children studying at places away fromtheir parents, merit scholarships for outstanding children and financialassistance for employees’ children to pursue higher professional education.

Liberal medical benefits are made available to employees and their familymembers by way of reimbursements towards normal medical treatment,domiciliary treatments and special sanctions for serious illness. Each of our

townships has well-equipped health care centres with qualified medicalstaff and facilities, ambulance, referrals and tie-ups with reputed hospitalsfor specialized treatment. In addition, there are regular health checkups,camps and programme.

Employees are eligible to apply for loans and financial assistance for various purposes such as purchase of assets, residential premises as wellas a scheme that provides for supply of cement at subsidized rates to thosebuilding their own houses.

At our cement plants and factories, employees are provided furnished andunfurnished accommodation based on their entitlements. At manylocations, the employees are given free electricity, free water supply andfree bus facility for nearby places and schools. These houses are well-maintained and periodically upgraded.



EMPLOYEE STATISFACTION

In addition to periodic internal Employee Satisfaction Surveys, weparticipate in Employee Satisfaction and Work Places Surveys conductedby reputed external agencies and organisations like Hewitt AssociatesGrow Talent. And from time to time, ACC has also retained reputed firms tostudy our internal work environment and employee policies and suggestareas of improvement. We share below salient points of the latest survey of employees: People are treated fairly regardless of religion and gender ACC is a safe place to work Management is competent in running business Employees feel good about what we do for society Proud to tell others I work here

Management thinks positively

The overall findings show significant job satisfaction at all levels as alsodeep respect for the company, its performance management system andits overall business performance.

PRODUCTION DEPARTMENT

It is a functional area responsible for converting inputs into finished productthrough a series of production process.

MANUFACTURING PROCESS

Crusher section

Ball mill and flotation section

Raw mill section

Kiln section

Cement mill section

Packing house

CRUSHER SECTION

The basic function of crusher department is to crush limestone of required

size. The first stage is referred as primary crushing in which the size of



limestone is reduced from big boulders to small pieces of size up to 150-

200mm.

The second stage of crushing is referred as the secondary crushing and it

is performed by an impact crusher, also called secondary crusher. theoutput from secondary crusher will be size of 30mm.

BALL MILL AND FLOTATION

The limestone size of above 30mm will be again discharged on the belt to

the ball mill. The basic function of ball mill and flotation department is to

ground the crushed limestone into high-grade slurry by forth flotation

process.

90% of limestone content is required in the slurry to produce cement, so for this purpose the flotation process is used. The output from the ball mill is

slurry which contains 80% of limestone content. By the use of flotation

process it is changed into 100% limestone content and stored in silos. Then

the slurry from raw mill is mixed into the 100% lime content slurry and

made into 90% limestone content Which is very much needed for cement

making process.

RAW MILL SECTION

The basic function of raw mill is to ground the crushed limestone along with

corrective materials like bauxite, literate, iron ore in required proportion in

the raw mills and to generate low-grade slurry which is used in the flotation

process.

FILTRATION

The slurry will contain 35% of water content in it . so it will cost more to

heat the slurry because coal is main material used in the heating process.the filtration process is used to observe the moisture and make into 5%

moisture.



KILN SECTION

The basic function involved in the kiln department is to transform kiln feed

slurry into clinker, which is an intermediate product in cement

manufacturing. The clinker manufacturing process adopted at works issemi-wet process as the slurry before feeding to the kiln is converted in to

cake by filtration process. It is a heating process were the slurry is changed

into clinker.

CEMENT MILL

The basic function of the cement mill department is to produce ordinary

Portland cement by grinding clinker and gypsum and to produce protland

pozzolana cement by grinding clinker,gypsum and flyash. The qualityrequirement of the cement ground as per the latest versions of Indian

standards.

PACKING HOUSE

The main function of packing house department is to pack cement into

bags and load the same into wagons/trucks. Packing house department

consist of totally seven silos in which the raw cement is stored.1&2 being

used for storing 43 grade OPC. Silo no. 5 is used for PPC. Silo no. 3&4 areearmarked for 33 grade OPC. 6&7 is also used for PPC cement. There are

two stationary packing machines and two trucks loading in his section.

CEMENT PRODUCTION AND DISPATCHES IN JULY 2012

Year July 2012 July2011

Cement production 1.86million tonnes 2.03 million

tones

Cement dispatches 1.86 milliontonnes

2.01 milliontones



FINANCE DEPARTMENT

Finance is the life blood of the business, it is rightiy as the science of money. Finance is very essential for smooth running of the business.Finance controls the policies, activities and decision of every business. Thedepartment is responsible for organizing the financial and accountingaffairs in the organization. Accounting involves the creation of financialrecord and financial transactions. The process of creating wealth in anorganization and the financial position of the business at a particular moment in time accounting of all transaction voucher bills ect.

SOURCE OF FINANCE

Financial policy

Capital structure

Ratio analysis

Leverages

Depreciation

Dividend policy

Tax payments

Budget

Income statements

FUNCTIONS

Assisting bank reconciliation.

Monthly and annual provident fund return.

Maintaining sales and service register.

Yearly finalization of account.

Monthly and half-yearly ESI returns.



Assisting in exercise duties, sales tax, and income tax

assessment.

Submission of monthly stock statement to banks.

Board resolution.

Monthly journal vouchers.

Scrutinizing of ledger accounts.

Providing details to auditors.

Preparation of cheques and bank vouchers.

Disbursement of cash.

Preparation of receipts.

Disbursement of salary and stipend.

Salary statements.

Maintaining daily cashbook and suspense registers.

Commission payable statements.

Updating books of accounts.

Tour advance, checking tour bills and necessary accounts is

done.

Maintaining of transport expenses.

Preparation of details regarding public shares.

Calculation of dividends for shareholders.

Preparation of monthly accounts regarding housing and

educational loans.

Maintaining of insurance of company and workers.

Maintaining of all other allowances of employees.

These are the major functions department of the company.



PROCUREMENT DIVISION

ACC has a countrywide spread of 14 modern cement plants. This largenetwork of manufacturing units consumes a wide spectrum of inputs – about 60,000 different items ranging from Coal, Gypsum, Slag, Packagingmaterial (bags), Refractories, Steel, Grinding Media, Electrodes, Cables,Bearings, Conveyor Belts, Spares of various mechanical, electrical andinstrumentation equipment, Mining Equipment and their spares andexplosives.

ACC has a vendor base of more than 6000 suppliers spread across thecountry.

A team of professionals at Corporate, Regions and Plant Level manages

the procurement function. The function is organized so as to derive

maximum value for the company through economies of scale from centralpooling and procurement of some inputs at the corporate level whilemeeting individual operational requirements at plant level. TheProcurement function comprises a Central procurement team at thecorporate office for the requirement of major inputs for the operations of cement plants.

Quarter

Apr-Jun2012

Quarter

Apr-Jun2011

Cum

Jan -Jun2012

Cum

Jan -Jun2011

SalesVolume – Cement

MillionTonnes

6.05 5.93 12.77 12.09

SalesTurnover

` Crore 2918.98 2539.41 5934.12 5080.69

Profitbefore Tax ` Crore 594.80 473.05 802.46 954.26

Net Profitafter Tax

` Crore 414.52 328.12 566.07 678.29



FINANCIAL RESULTS FOR (april-june)2012

During the second quarter ending June 30, 2012,the company’s sales volumes continued to register improvement,

as compared to last year. Total consolidated turnover in thequarter rose by 15 per cent to 2918.98 crore as compared to2539.41 crore in the same quarter of 2011.The quarter witnessed steep escalations in most of our majorinput costs including slag, fly ash, gypsum and power. The sharphike in railway freight rates with effect from March 6, 2012substantially impacted both inward and outward costs. Profitbefore Tax during the quarter stood at ` 594.80 crore as against473.05 crore in the corresponding period of the previous year.

Profit after Tax was ` 414.52 crore, compared to ` 328.12 crore inthe same period of last year.The Board of Directors at its meeting today has approved aninterim dividend of 11/- per equity share of ̀ 10/- each.The cement market has been growing steadily and, barringseasonal fluctuations,The company expect it to maintain the same course in the nearterm.

Audit CommitteeMr Shailesh Haribhakti, ChairmanMr S M PaliaMr Naresh ChandraMr Paul Hugentobler Mr Sushil Kumar Roongta

INFORMATION SYSTEM DEPARTMENT

This department is responsible for the computer system present in thecompany office to work in a seamless manner. They would be upgrading to

versions6.0 in the foreseeable future. They use vsat technology for

networking between various manufacturing units of acc present thought

India

The sap program has five modules



Fico/finance

Material management

Plant maintenance

Distribution

Human Resources.

All the information entered into the ERP system is stored in the

database located at the Mumbai, their head office.

Acc was the first among the Indian companies to adopt automation of

information technology. They started to progress through the

harnessing of relevant available technologies a practice that

continues even today. They have traveled a long way from their earlier days when they were using simple key punching machines.

Significant improvements have been made in application systems

and infrastructure since then from batch processing to on line system

from IBM and data general system to the latest Linux Unix and

Windows 2003 based machines they have made timely transition

obtained by the available technologies and business requirements.

In feb, 2007 the company made quantum improvement in house

developed systems using oracle 9i1 and ERP(SAP) based solutions.

this decision was based solely on their strategic objectives and the

business benefits that they had expected to be derived from

implementing such a solution with this more they also aligned people

business processors and technologies across the country.

The company has intranet portal called accelerate which is dedicated

to employees. The portal content is based on personal information

relating to human resource matter, performance management as well

as other information of use to employees such as the latest news or

company affairs developments on sustainable development, house

magazines and newsletters. Bring a large organization with a country

wide network of manufacturing, marketing and R&D centers they

have invested in the organization. A hybrid WAN net work connects

each of the 275 plus locations. A judicious ix of vcat and vpn links



ensure adequate connectivity between there. Each manufacturing

location has designed LAN to meet it needs.

ADVANTAGES OF THE SOFTWARE

Flexibility to meet varied business requirements

Uses best business practices across the globe

Immediate across to information

It supports all business process including material

management, production, sales and distribution, finance and

accounting, plant maintenance and human resource.



TRAINING EXPOSURE IN SPECIFIC DOMAIN

My learning outcomes are from the organizational study is:

I got an opportunity to apply my class room learning’s into the

organizational environment

I learned the concepts through practicality.

I got some insights about functional process followed in my internship

organization

It gives me a confidence to interact with corporate people.

I came to know about the real corporate culture.

I got some inputs about the organizational behaviour and how ,I

should behave in the my organization in the future

New Knowledge Acquired

One thing regarding new knowledge is what I have shared in

accomplishments. Next one important thing regarding knowledge acquired

is that what we studied is totally different from the job duties we are doing

in future we have to do honestly. We have to understand that work from

start, in case of an employee leaving a company and joining other he also

will have to understand the work in new company. I have got a lot of sense

regarding working in an organization where everyone is working out for

cutting the roots.



CONCLUSION

This organizational training provided me a very extensive

knowledge about functional process of the organization. And I was able to

understand how the managerial functions are undertaken personally and

technically as well, which will help me in future for my career in any

organization. This institutional training has show the way to gain more

practical knowledge. It helps to easily understand the theoretical concepts

which I learned in class in practical way. From this organizational training, Ienhanced my technical knowledge and managerial skills. And I learned

many things about the human relationship and their attitude towards work.

This will surely support to specialize my career in human resource

management.

summer project report acc

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