Acc limited

Acc limited , organisational study , cement company , MBA , fisat , mba 2nd semester , full os project , mahatma gHandi university, department analysis , marketing department , finance department , logistics

1. ACC Limited, Bangalore By Abhinav kp

2. 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.

3.  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.

4. Board of Directors

5. 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

6. Company products.. OPC 43 OPC 53 Portland Slag Cement Concrete plus

7. Organizational structure

8. Departments of the company CUSTOMER SERVICE DEPARTMENT (CSS ) FINANCE DEPARTMENT (FICO) MARKETING DEPARTMENT LOGISTICS DEPARTMENT(LOG) MI DEPARTMENT (MTO) SALES DEPARTMENT ADMIN DEPARTMENT

9. 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

10. 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 charge CSE – Customer Service Executive

11. 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.

12. Functions of a finance department To Prepare the Budget Financial Management Management of Taxes Merger or Acquisition decisions

13. 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.

14. Functions of Marketing Department SUPPLY CHAIN MANAGEMENT ADVERTISEMENT ACTIVITIES : National team State level sales unit team MARKETING INTELLIGENCE SALES PROMOTION ACC Lakshya ‖

15. 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

16. AO – area officer

17. 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.

18. STOCK KEEPING BY LOGISTICS DEPARTMENT Safety stock (also called buffer stock ) : 500 tonnes MINIMUM STOCK : 5-6 days stock . Which is roughly around 1 000 tonnes MAXIMUM STOCK :

19. 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.

20. 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

21. 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

22. 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

23. TASK GIVEN TO ME

24. 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

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

26. M ost suitable cement which can be used for RCC work

27. W idely used cement for plastering

28. PHYSICAL PURCHASE vs PHONE PURCHASE

29. 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

30. 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.

31. 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.

32. 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

33. 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.

34. 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

35. 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)

36. 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.  

37. 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 2 nd 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

38. 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.