SUMMER TRAINING REPORT

ON

Analysis of

Supply Chain Management

Area office lucknow

Submitted To: Submitted By:

Mr. Arun Nainta Lalit Badoga (09MB03)
(Chief Manager ACC-Shimla) Vivek Sharma (09MB08)
Vipin Jaryal (09MB25)

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 INDEX

Page No.

CHAPTER-:1 Executive Summary ------------------------ 6-10

 Project Summary
 Background
 Process of the project
 Conclusion
 Recommendations for further Action

CHAPTER-:2 Company Profile ------------------------- 10-41

 Introduction to ACC Limited
 ACC Vision
 About the Product
 ACC Services
 ACC product Quality
 Facts and Figures
 Profile of Cement Industry
 SWOT Analysis of ACC Cement

CHAPTER-:3 Research Methodology ------------------------- 42-46

 Objectives
 Research Design
 Sources of Data Collection
 Scope of the study
 Need for the study
 Limitations of the study

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 Page No.

CHAPTER-:4 Introduction to Supply Chain Management -------- 47-57

 Supply Chain Management
 Logistics
 SAP Supply Chain Management
 Supply Chain Management Problems
 Supply Chain Flow Chart of ACC - Shimla
 Cyclic Process
 Process of Supply Chain at ACC - Shimla

CHAPTER-:5 Data Collected ------------- 58-68

CHAPTER-:6 Findings and analysis ------------- 69-78
CHAPTER-:7 Conclusion and Recommendations ------------- 79-81
CHAPTER-:8 Bibliography ------------------- 82
CHAPTER-:9 Annexure --------------------------------- 83-86
CHAPTER-:10 Synopsis ---------------------------------- 87-89

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 ACKNOWLEDGEMENT

Perseverance, inspiration and motivation have always played a key role in the
success of any venture. So hereby, it’s our pleasure to record thanks & gratitude to the
persons involved. First, we thank Mr. Arun Nainta, Area-Incharge Shimla, ACC-
Cement, for his continuous support, stimulating Suggestions and helping us all the
time during our project. Mr. Arun Nainta has been a friend and a guide. He was
always there to meet & talk about our ideas. He was there to help us out if we ever had
any problem.
We are deeply indebted to our esteemed HOD Dr. Piar Chand, National
Institute of Technology- Hamirpur (H.P.), for his kind and constant encouragement.
A special thank goes to Mr. Rominder Dhaulta and Mr. Kailash Kumar. Both
of them were always ready to listen & give advice.
We would like to extend our thanks to Mr. Anish Kundel Area-Incharge, ACC-
Barmana and all the respondents who patiently answered to all queries and cooperated
with us and provided all the valuable information that, we needed for our project
study.
At last, thanks to and our family members & also to our Teachers for being so
supportive

4
 PREFACE

Indian economy is facing a boom in the real estate. This is directly related with
the cement sector. ACC cement being one of the top players in the Indian market and
have major share in the market.
During our project, we carried out a research for ACC cement and tried to find
out Problems related to supply chain management in ACC-Area office Shimla. Also to
find out whether dealers are making use of services provided by ACC Limited this
research is conducted.

5
 Executive
Summary

6
 PROJECT SUMMARY

This project is about “Analysis of Supply Chain Management of ACC - Area

office Shimla”. This project is conducted to find out the potential problems of the
supply chain which Dealers are facing.

BACKGROUND

In 2010 dealers of ACC Limited are facing various problems related to proper
supply of the cement. To find out potential reason, this research is done. Also to find
out whether dealers are making use of services provided by ACC Limited this
research is conducted.

PROCESS OF THE PROJECT

 Preparation of Questionnaire: First of all we prepared a sample questionnaire

and then we met some of dealers of Shimla District. On the basis of responses
of dealers about questions asked we finalised questionnaire keeping Area of
Study in focus

 Sample for study is taken from three Districts under Area Office Shimla i.e.
Shimla, Solan and Sirmour. We decided to cover two Districts i.e. Shimla and
Solan for our study.

 Filling of the questionnaire by Dealers: We visited dealers again with proper

questionnaire and requested them to fill questionnaire. The data for
questionnaire is collected from two districts i.e. Shimla and Solan. It took us
about 4 weeks to collect all the questionnaires from dealers.

 Summarizing the data: After collection of Questionnaire data is summarised

and tabled. On the basis of that charts are plotted.

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 Interview of the Persons: Area In charge and Logistics In charge of Acc
Bilaspur, Truck Union Leader- Bilaspur.

 On the basis of above analysis, Interpretation and evaluation of data is done

CONCLUSION
1. There is problem in regular supply of cement in 2010.

2. Before 2010 supply of Cement was regular.

3. Demand of cement shows seasonal fluctuation leading to more sale of cement

between April-September.

4. The main reason behind the delay in supply of cement is maintenance work

which is going on in Gaggal Plant of ACC Limited. Also sometime sudden

increase in demand takes time to cope up.

5. Most of Dealers gets the SMS about truck processing their order.

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 RECOMMENDATIONS FOR FURTHER ACTION

1. Many of ACC dealers used to shop other type of building materials along with
cement, in the same shop. This should not be permitted by ACC. Because
selling of these building materials is more profitable than cement, so the
cement selling becomes less important for these dealers. They don’t give
proper attention to the company officials and also to the various schemes of
increasing sales. This in turn brings reduced sales to the company.

2. To Supply adequate cement to dealers on time. The dealer’s complaint was that
they receive less supply cement according to their demand, if they get ample
amount than the sale of ACC cement will increase many fold.

3. Introduce gift schemes to customers. Since the ACC is priced high than other
many brands so it should focus on this scheme. So introducing gift schemes to
customers will inspire them to buy the product.

4. Extend the advertisement facility by media such as TV and newspapers also

ensuring that it reaches the low class people too.

5. Majority of the respondents agreed that ACC cement is having a reasonably

Good quality. So retaining the quality is highly important in the Marketing
point of view.

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 COMPANY
PROFILE

10
 INTRODUCTION TO ACC LIMITED

ACC (ACC Limited) is India's foremost manufacturer of cement and

concrete. ACC's operations are spread throughout the country with 16 modern cement
factories, more than 40 Ready mix concrete plants, 20 sales offices, and several zonal
offices. It has a workforce of about 10,000 persons and a countrywide distribution
network of over 9,000 dealers.
Since inception in 1936, the company has been a trendsetter and important benchmark
for the cement industry in many areas of cement and concrete technology. ACC has a
unique track record of innovative research, product development and specialized
consultancy services. The company's various manufacturing units are backed by a
central technology support services centre - the only one of its kind in the Indian
cement industry.

ACC has rich experience in mining, being the largest user of limestone. As
the 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 outward movement of materials and
products.

Among the first companies in India to include commitment to environmental

protection as one of its corporate objectives, the company installed sophisticated
pollution control equipment as far back as 1966, long before pollution control laws
came into existence. Today each of its cement plants has state-of-the art pollution
control equipment and devices.

ACC plants, mines and townships visibly demonstrate successful endeavours in

quarry rehabilitation, water management techniques and ‘greening’ activities. The
company actively promotes the use of alternative fuels and raw materials and offers
total solutions for waste management including testing, suggestions for reuse,
recycling and co-processing.

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 ACC has taken purposeful steps in knowledge building. We run two institutes that
offer professional technical courses for engineering graduates and diploma holders
which are relevant to manufacturing sectors such as cement. The main beneficiaries
are youth from remote and backward areas of the country.

ACC has made significant contributions to the nation building process by way of
quality products, services and sharing expertise. Its commitment to sustainable
development, its high ethical standards in business dealings and its on-going efforts in
community welfare programmes have won it acclaim as a responsible corporate
citizen. ACC’s brand name is synonymous with cement and enjoys a high level of
equity in the Indian market. It is the only cement company that figures in the list of
Consumer SuperBrands of India.

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Heritage - A Corporate Saga

Ours has been an interesting story - one that inspired a book. ACC was
formed in 1936 when ten existing cement companies came together under one umbrella
in a historic merger - the country's first notable merger at a time when the term mergers
and acquisitions was not even coined. The history of ACC spans a wide canvas
beginning with the lonely struggle of its pioneer F E Dinshaw and other Indian
entrepreneurs like him who founded the Indian cement industry. Their efforts to face
competition for survival in a small but aggressive market mingled with the stirring of a
country's nationalist pride that touched all walks of life - including trade, commerce and
business.

The first success came in a move towards cooperation in the country's young cement
industry and culminated in the historic merger of ten companies to form a cement giant.
These companies belonged to four prominent business groups - Tatas, Khataus, Killick
Nixon and F E Dinshaw groups. ACC was formally established on August 1, 1936.
Sadly, F E Dinshaw, the man recognized as the founder of ACC, died in January 1936;

12
just months before his dream could be realized.

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 original name, The Associated Cement Companies Limited, itself
indicated the company's origins from a merger. Many years later, some stockbrokers in
the country's leading stock exchanges continued to refer to this company simply as 'The
Merger'.

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,

13
 Nawab Salar Jung Bahadur and Sir Homy Mody among others.

Holcim - A New Partnership

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 (later called Ambuja Cement
Ltd), who then became the largest single shareholder in ACC.

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
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
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 welcomed this new association.

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Cement House- The Head Office building

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 neighbourhood. 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, Churchgate. 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.

15
In 2009, a unique project, has transformed Cement House into an energy efficient
environment-friendly building. Its attractive refurbished façade now houses an
ultramodern office equipped with space-saving modular workstations, access control
and intelligent lighting with motion and light sensors, waste management systems and
water saving devices set amid greenery and a central atrium that further expands the
sense of light and space.

ACC Vision:
TO be one of the most respected companies in India; recognized for
challenging conventions and delivering on our promises

About The product

ACC's brand name is synonymous with cement and enjoys a high level of
equity in the Indian market. Acc has a wide range of cements and blended cements is
marketed through a network of 19 Sales Units, 54 Area Offices, and 194 warehouses.
This is backed by a countrywide network of over 9,000 dealer who, in turn, are
assisted by their sub-dealers.

ACC’s marketing, sales and distribution

processes are industry standards. ACC is
essentially a people’s brand of cement with
more than 80 per cent of sales made through an
extensive dealer network that covers every
state in India. Its customer base represents the
masses of India - individual homebuilders in
small towns, rural and semi-urban India. ACC
cement enjoys an image of assuring consistency and of high quality backed by in-
house research and expertise.

16
Complementing this is a unique customer services cell comprising qualified civil
engineers, who assist and advise customers with prior and post sales service. This
service begins with selection of type and grade of cement (where applicable) to
troubleshooting and on-site assistance.

ACC manufactures the various kinds of Portland Cement for general construction and
special applications. In addition to this, ACC offers two value added products namely,
Bulk Cement and Ready Mix Concrete.

ACC manufactures the following types of cement, in addition to which, it provides

Bulk Cement and Ready Mix Concrete.

Ordinary Portland Cements

1. 43 Grade Cement (OPC 43 Grade)

ACC Cement is the most commonly used cement in all constructions including plain
and reinforced cement concrete, brick and stone masonry, floors and plastering. It is
also used in the finishing of all types of buildings, bridges, culverts, roads, water
retaining structures, etc.

What is more, it surpasses BIS Specifications (IS 8112-1989 for 43 grade OPC) on
compressive strength levels.

ACC Cement is marketed in specially designed 50 kg bags.

2. 53 Grade Cement

This is an Ordinary Portland Cement which surpasses the requirements of IS: 12269-
53 Grade. It is produced from high quality clinker ground with high purity gypsum.

ACC 53 Grade OPC provides high strength and durability to structures because of its
optimum particle size distribution, superior crystalline structure and balanced phase
composition.

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Blended Cements

1. Fly-ash based Portland Pozzolana Cement

This is a special blended cement, produced by inter-grinding higher strength Ordinary

Portland Cement clinker with high quality processed fly ash - based on norms set by
the company's R&D division. This unique, value-added product has hydraulic binding
properties not found in ordinary cements.

It is available in specially designed 50-kg bags.

 What is special about ACC Fly-ash based PPC?

ACC Fly-ash based PPC is made by intergrinding high strength clinker with
specially processed flyash. This imparts a greater degree of fineness to ACC
Fly-ash based PPC cement, improved workability properties while mixing, and
makes concrete more corrosion resistant and impermeable. All of this makes
for better long-term strength and improved corrosion resistance and therefore,
greater life for your constructions. ACC Fly-ash based PPC is an eco-friendly
cement
 What are the advantages of using ACC Fly-ash based PPC ?

In concrete made from ordinary cements, moisture reacts with calcium

hydroxide in concrete to form calcium bicarbonate, which leaches out of the
concrete, leaving pores that reduce its strength. ACC Fly-ash based PPC has
ingredients which react with calcium hydroxide to form CSH gel, to provide
additional strength, which actually makes the concrete grow in strength over
the years. It also produces less heat of hydration and offers greater resistance to
the attack of aggressive waters than normal Portland cement.

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Portland Slag Cement

This is a slag-based blended cement that imparts strength and durability to all
structures. It is manufactured by blending and inter-grinding OPC clinker and
granulated slag in suitable proportions as per our norms of consistent quality. PSC has
many superior performance characteristics which give it certain extra advantages
when compared to Ordinary Portland Cement

It is available in specially designed 50-kg bags.

Compared to OPC, ACC PSC imparts some important additional advantages

 Reduction in free lime leaching.

 Ultimate higher strength.
 Improved workability, reduced bleeding as well as segregation and corrosion.
 Denser, less permeable concrete, and mortar.
 Better resistance to sulphates, chlorides, and CO2 and alkali-aggregates
reaction.
 Less heat, reduced plasticity and drying shrinkage.
 Increased static modulus of elasticity.
 Increased serviceability with less deflection of members and micro cracks and
reduced cost of construction and maintenance.

All these factors make for a strong, durable, and longer lasting construction. ACC
PSC benefits the structure, protects the environment by reducing CO2 emissions and
helps conserve energy. Which is why it is often referred to as an eco-friendly cement.

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Bulk Cement

Yet another first in our seven-decade history of

cement in India has been the introduction of Bulk
Cement, an alternative to bagged cement, which is of
particular advantage to large consumers of cement. Internationally, the trend is to
move cement more and more in loose form rather than bagged. In fact, over 90
percent cement in the USA, and other European countries is transported and sold in
bulk, unlike in India, where only one percent is transported in bulk.

Beside all above discussed tyes Acc also provides Ready Mix Concrete. ACC set up
India's first commercial Ready Mix Concrete (RMX) plant in Mumbai in 1994. Today
this business has been reorganized as a separate company called ACC Concrete
Limited which is one of the largest manufacturers of RMX in India with over 40
modern plants in major cities such as Mumbai, Bangalore, Kolkata, Chennai, Delhi.
Hyderabad, Goa, Pune and Ahmedabad.

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 PRODUCTS : : CUSTOMER SERVICES

off
ACC is essentially a people’s brand of
cement with more than 80 per cent of sales made
through an extensive dealer network that covers every
state in India. Its customer base represents the masses
of India - individual homebuilders in small towns,
rural and semi-urban India.

Going beyond the supply of cement, Acc offer ‘ACC Help services’ to share knowledge
about the process of home building and correct procedures of product usage.

Acc Regional Offices have 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.

ACC reaches out to its customers, home builders and engineers in the following ways:

 ACC Help Centres: For personal guidance on the right construction practices.
 ACC Help Literature: Easy-to-understand construction guides.
 ACC Help Vans : Mobile help services. Acc engineers in vans assist users at their
site www.acchelp.in : an interactive website for all users construction related
questions.
 Indian Concrete Journal : the country’s oldest civil engineering journal

For more information consumer can SMS ‘ACCHELP’ to 575758 or send Acc an
email addressed to acchelp@acclimited.com

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ACC Help Center

The first of its kind in India, the ACC Help Center, now available in several cities,
provides basic information and guidance to customers on construction practices and
various home building-related procedures - such as pre-construction worries on stamp
duty, selection of architects and appropriate service providers, estimating budgets. Issues
from purchasing land, budgeting to choice of material and planning of the construction
process are elaborated, step-by-step. Tutorials, conveniently scheduled in the evenings,
guide the customer, through the relevant stages of house construction. The center
distributes specially designed booklets on each stage of building one’s “Dream House”.
These publications are available in English, Hindi and major regional languages. To look
for an ACC Help Centre users can log on to www.acchelp.in or write to
acchelp@acclimited.com|

ACC Help Literature

The ACC Help Center distributes specially designed booklets on each stage of building
one’s "Dream House". These publications are available in English, Hindi and major
regional languages.

ACC Help Vans

Mobile touring vans to visit construction sites to educate users and masons at site and
provide certain specialized services like supervision during slab casting on demand.

www.acchelp.in

This is an interactive website, designed primarily for the individual house builder and the
small consumer. The site provides downloads and online inputs on a host of topics like
estimation, budgeting, selecting architects and easy-to-build home-plans for different
plot sizes.

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Indian Concrete Journal

The "Indian Concrete Journal", the country’s oldest civil engineering journal, continues
to be published by ACC. It reaches out to practicing and consulting engineers, architects,
builders, contractors and government departments. It aims to disseminate the latest
information and technological progress in civil and structural engineering, cement and
concrete technologies, construction methods and practices.

QUALITY
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Product Development has always been an
important activity at ACC, arising out of a focus on quality and
process improvement. It has been a constant partner, driving
research, innovation and evaluation.

ACC has effectively pledged its reputation as the market leader in the quality of cement.
Maintaining this lead calls for harnessing the resources and expertise of the company -
from applied research and production to marketing. Accordingly, all ACC factories are
equipped with state-of-the-art process control instrumentation and associated quality
control and testing laboratories manned by qualified personnel.

As a result of this focus on quality, ACC cement specifications exceed those set by BIS
by a wide margin. Today, all ACC cement plants have the ISO 9001 Quality Systems
certification. This demonstrates our tradition of providing reliable and consistent quality
through the application of modern technology, and justifies the preferences of a
nationwide customer base.

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Facts and Figures

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

Awards received in 2010

 9th Greentech Safety Gold Award in cement sector to ACC Jamul

Awards received in 2009

 Financial Express-Emergent Ventures India (EVI) Green Business

Leadership award

 Institute of Chartered Accountants of India (ICAI) award for Excellence in

Financial Reporting for Annual Report 2008

 Indian Merchants’ Chamber Ramkrishna Bajaj National Quality Trophy –

2009 to ACC Gagal

 Indian Merchants’ Chamber Ramkrishna Bajaj National Quality

Commendation Certificate 2009 to ACC Sindri

 8th Greentech Safety Award 2009 in Gold category in cement sector to ACC
Tikaria

24
  8th Greentech Safety Gold Award in cement sector Jamul

 10th Greentech Environment Excellence award – Gold category – cement

sector to Tikaria

 Srishthi Good Green Governance Award by Srishthi Publications, Delhi to

ACC Madukkarai

 International Safety Award 2008 by British Safety Council to ACC Gagal

Sindri and Tikaria

 State Safety Award for 2007 from Government of Orissa to ACC Bargarh

 Federation of Indian Mineral Industries (FIMI) National Environment

Award to ACC Wadi Limestone Mines

 Safety Innovation Award by Institution of Engineers to ACC Wadi

(Expansion Project)

 Energy Conservation Award by Rajasthan Renewable Energy Corporation to

Lakheri

 National Award for Excellence in Water Management from Confederation of

Indian Industry (CII) to ACC Wadi

Awards received in 2008

 CNBC-TV18's India Business Leaders Award in the category India

Corporate Citizen of the Year 2008

 Best Audit Committee Award 2008 by the Asian Centre of Corporate

Governance & Sustainability and Indian Merchants' Chamber.

 Golden Peacock Award for Eco-Innovation by World Environment

25
 Foundation

 Safety Innovation Award 2008 by the Institution of Engineers

 Greentech Gold Safety Award by Greentech Foundation

 9th Annual Greentech Environment Excellence Award 2008 by Greentech

Foundation

 Good Green Governance Award 2007 by Srishti Publications

 Indian Merchants’ Chamber Ramkrishna Bajaj Performance Excellence

Trophy awarded to Gagal Works and Certificate of Merit to Tikaria Works –
in manufacturing sector

 National Award for Excellence in Water Management by Confederation of

Indian Industry (CII)

 Energy Efficient Unit awarded to New Wadi Plant by CII under National
Energy Awards 2008

 "Vanvasi Sant Gahira Guruji Maharaj Chhattisgarh Environment Award

2008 by Environment Conservation Board, Chhattisgarh Government

 "Sustainable Miners Club : The Federation of Indian Mineral Industries,

(FIMI) New Delhi has selected ACC, one of the four companies in India, to be
a member of the "Sustainable Miners Club" for outstanding contribution to
the national goal of sustainable development.

Awards received in 2007 & 2006

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Economic performance

 ISO 9001: 2000 Quality Management System for Marketing and Distribution
of Cement Activities certification awarded to ACC’s Mumbai Regional

26
 Marketing Office (now SU-Mumbai) in January 2006 by TUV, an ISO Audit
agency. This is the first marketing office in ACC to receive such certification
and also the first marketing office in the Indian cement industry.

 Consumer Superbrand 2006-07: ACC awarded Superbrand status - the only

company in the cement industry - by Superbrands India Council.

 IS/ISO 9001: 2000 Quality Management System Certification received by

ACC Tikaria from the Bureau of Indian Standards in January 2006

 IS/ISO 9001: 2000 Quality Management System Certification received by

ACC Damodhar from the Bureau of Indian Standards in January 2006

 IMC Ramkrishna Bajaj National Quality Awards - ACC Gagal awarded the
commendation certificate – 2007

 IMC Ramkrishna Bajaj National Quality Awards - ACC Wadi won the
Special Award for Performance Excellence – 2007

Environmental performance

 Golden Peacock Eco-Innovation Award 2008 awarded to ACC’s AFR

Business by the award Jury, under the Chairmanship of Justice P N Bhagwati,
former Chief Justice of India and Member, UN Human Rights Commission.

 Golden Peacock Eco-Innovation Award won by ACC Chanda at 8th World

Congress on Environment Management, Palanpur Himachal Pradesh in June
2006.

 Greentech Environment Excellence Award - Bronze won by ACC Sindri in

2006 for significant contribution in the field of environment protection

 National Award for Fly Ash Utilization 2005: Conferred on ACC jointly by
three ministries of government - Ministry of Power, Ministry of Environment
& Forests and Department of Science & Technology. The award recognizes

27
 ACC as being the largest user of fly-ash.

 ISO 14001 for Production of Quality Controlled Ready Mixed Concrete in

Pollution Free Environment awarded to ACC RMX Faridabad in June 2006
by Benchmark an affiliate of JAS ANZ Australia. It is India’s first RMX Plant
to get this certification.

 National Award for Excellence in Water Management 2006 awarded to ACC

Tikaria by Confederation of Indian Industry. ACC Tikaria was adjudged as
Excellent Water Efficient Unit at national level amongst leading industries.

 National Energy Conservation Awards for Energy efficiency in Indian cement

industry won by ACC Gagal in January 2006 for best improvement in thermal
energy and best improvement in energy performance in manufacture of blended
cements in 2004-05. The awards are instituted by National Council for Cement
and Building Materials and presented by the Director Department of Industrial
Policy and Promotion, Ministry of Commerce and Industry.

 ‘Viswakarma Trophy’ awarded to ACC Gagal Limestone Mines for overall

outstanding performance in safety and environment protection.

 MEMC (Mines Environment & Mineral Conservation) Trophy won by ACC

Kymore Mehgaon & Bamangaon Mines in different categories such as Air
Quality Management, Top soil management, waste dump management,
community development and aesthetic beauty.

 Greentech Gold Award For Cement Industry – instituted by Greentech

Foundation won by ACC Jamul for outstanding achievements in environment
protection and pollution control in 2007.

 10th F.L. Smidth Energy Award 2007: a combined state level award of
Madhya Pradesh and Chhatisgarh awarded to ACC Kymore for energy
conservation.

 Good Green Governance Award 2007, a National Level Award organized by

28
 SRISHTI Publications, received by ACC Jamul in non metellurgical Category.
The was presented to ACC by Mrs Sheela Dixit, Hon’ble Chief Minister of
Delhi.

Social performance

 Good Corporate Citizen Award 2005-06 by Bombay Chamber of Commerce &

Industry presented to ACC in September 2006 “in recognition of its corporate
achievements and ongoing endeavors in improving the quality of life of the
community”.

 First in Small Savings Activities: ACC Lakheri was recognized by

Government of Rajasthan in June 2006 for promoting small savings among
employees and local community through promotion drives and opening
recurring deposit bank accounts. This is the fourth time the plant has received
the award in the state.

 Global Challenger to world’s leading Companies - ACC named in S&P

Global Challengers class of 2007, the world’s leading index provider, in a
listing of 300 mid-size companies expected to emerge as challengers to the
world’s leading blue-chip companies.

OH&S AWARDS

 National Safety Award 2005 won by ACC Sindri as runner-up for outstanding
performance in industrial safety for achieving “Lowest Average Weighted
Accident Frequency Rate” for three consecutive years.

 Best Overall Safety Performance Award awarded to ACC Kymore at Mines

Safety Week in November 2007 under the aegis of Director of Mines Safety.

29
Other prominent awards won by us over the years comprise some coveted ones
conferred by organisations of repute.

Awards & Accolades

 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.

 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 Commerce and

Industry

 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

30
 Pradesh Pollution. Control Board.

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

1955 Sindri cement works used the waste product calcium carbonate sludge
from fertilizer factory at Sindri.

1956 Bulk Cement Depot established at Okhla, Delhi

1957 Technical training institute established at Kymore, Madhya Pradesh.

1957 Katni Refractories

1961 Blast furnace slag from TISCO used at the Chaibasa Unit to manufacture
Portland Slag Cement for the first time in India.

1961 Manufacture of Accocid Cement, which resists the corrosive action of

31
 acids and chemicals.

1961 Oilwell Cement manufactured at ACC Shahabad Cement Works in

Karnataka for cementation of oilwells upto 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.

1965 Manufacture of Calundum, a High Alumina Binder; Firecrete, Low

Density Alumina Castables and High Alumina Refractory Cement.

1968 Advent of computers in ACC for data processing and designing

management information and control systems.

1968 ACC supplied and commissioned one-million-tonne iron ore pelletising

plant ordered by TISCO

1971 Manufacture of Whytheat Castables A, K, C and Cal-Al-75

1973 Take-over of The Cement Marketing Company of India (CMI)

1977 ACC receives ASSOCHAM first national award for the year 1976
instituted for outstanding performance in promoting rural and agricultural
development activities.

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.

32
1979 ACC wins international contract for operation and management of a new
one million tonne cement plant at Yanbu-Ras Biridi in Saudi Arabia.

1982 Commissioning of the first 1 MTPA plant in the country at Wadi,

Karnataka.

1984 ACC achieves a breakthrough in import substitution by developing and

supplying a special G type of oil well cement to ONGC.

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.

1995 ACC selected as Most Respected Company in India by Business India.

1998 Commissioning of the 0.6 MTPA cement grinding unit at Tikaria, Uttar
Pradesh.

1999 Commissioning of captive power plants at the Jamul and Kymore plants in
Madhya Pradesh.

1999 Tata group sells 7.2% of its stake in ACC to Ambuja Cement Holdings
Ltd, a subsidiary of Gujarat Ambuja Cements Ltd. (GACL)

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.

2001 Commissioning of the new plant of 2.6 MTPA capacity at Wadi,

Karnataka plant, the largest in the country, and among the largest sized

33
 kilns in the world.

2002 ACC wins PHDCCI Good Corporate Citizen Award

2003 IDCOL Cement Ltd becomes a subsidiary of ACC

2004 IDCOL Cement Limited is renamed as Bargarh Cement Limited (BCL).

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.

2004 ACC named as a Consumer Superbrand by the Superbrands Council of

India, becoming the only cement company to get this status.

2004 GreenTech Safety Gold and Silver Awards awarded to Madukkarai

Cement Works and Katni Refractory Works by Greentech Foundation for
outstanding performance in Safety Management System.

2005 ACC receives the CFBP Jamnalal Bajaj Uchit Vyavahar Puraskar
Certificate of Merit – 2004 from Council For Fair Business Practices.

2005 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.

2005 Commissioning of Modernisation and Expansion project at Chaibasa in

Jharkhand, replacing old wet process technology with a new 1.2 MTPA

34
 clinkering unit, together with a captive power plant of 15 MW.

2005 Financial accounting year of the company changed to calendar year

January-December

2006 Subsidiary companies Damodhar Cement & Slag Limited, Bargarh

Cement Limited and Tarmac (India) Limited merged with ACC

2006 ACC announces new Workplace policy for HIV/AIDS

2006 Change of name to ACC Limited with effect from September 1, 2006 from
The Associated Cement Companies Limited.

2006 ACC receives Good Corporate Citizen Award 2005-06 from Bombay
Chamber of Commerce and Industry

2006 New corporate brand identity and logo adopted from October 15, 2006

2006 ACC establishes Anti Retroviral Treatment Centre for HIV/AIDS patients
at Wadi in Karnataka– the first ever such project by a private sector
company in India.

2007 ACC partners with Christian Medical College for treatment of HIV/AIDS
in Tamil Nadu

2007 Sumant Moolgaokar Technical Institute completes 50 years and reopens

with new curriculum

2007 ACC commissions Wind energy farm in Tamilnadu.

2008 Ready mixed concrete business hived off to a new subsidiary called ACC
Concrete Limited.

2008 ACC Cement Technology Institute formally inaugurated at Jamul on July

35
 7.

2008 First Sustainable Development Report released on June 5.

2008 ACC wins CNBC-TV18 India Business Leader Award in the category
India Corporate Citizen of the year 2008

2008 Project Orchid launched to transform our Corporate Office, Cement House
into a green building.

2009 ACC received the Jamanalal Bajaj "Uchit Vyavahar Puraskar" of Council
for Fair Business Practices

2009 ACC is allotted coal blocks in Madhya Pradesh and West Bengal.

2009 ACC's new Grinding plant of capacity 1.60 million tonnes inaugurated at
Thondebhavi in Karnataka.

2010 Kudithini Cement Grinding Plant inaugurated in Karnataka on January 4,

2010 with a capacity of 1.1 MTPA of Portland Slag Cement.

2010 ACC acquires 100 percent of the financial equity of Encore Cements &
Additives Private Limited which is a slag grinding plant in
Vishakhapatnam in coastal Andhra Pradesh. This company became a
wholly-owned subsidiary of ACC in January 2010.

36
 PROFILE OF CEMENT INDUSTRY

The Indian Cement industry is the second largest cement producer in the world, with
an installed capacity of 144 million tonnes. The industry has undergone rapid
technological up gradation and vibrant growth during the last two decades, and some
of the plants can be compared in every respect with the best operating plants in the
world. The industry is highly energy intensive and the energy bill in some of the
plants is as high as 60% of cement manufacturing cost. Although the newer plants are
equipped with the latest state-of-the-art equipment, there exists substantial scope for
reduction in energy consumption in many of the older plants adopting various
energy conservation measures. The Indian cement industry is a mixture of mini and
large capacity cement plants, ranging in unit capacity per kiln as low as 10 tpd to as
high as 7500 tpd. Majority of the production of cement in the country (94% ) is by
large plants, which are defined as plants having capacity of more than 600 tpd. At
present there are 124 large rotary kiln plants in the country. The Ordinary Portland
cement (OPC) enjoys the major share (56%) of the total cement production in India
followed by Portland Pozzolana Cement (PPC) and Portland Slag Cement (PSC). A
positive trend towards the increased use of blended cement can be seen with the
share of blended cement increasing to 43%. There is regional imbalance in cement
production in India due to the limitations posed by raw material and fuel sources.
Most of the cements plants in India are located in proximity to the raw material
sources, exploiting the natural resources fully. The southern region is the most
cement rich region while other regions have almost same cement production capacity.
The Indian cement industry is about 90 years old and its main sources of energy are
thermal and electrical energy. The thermal energy is generally obtained from
coal, and the electrical energy obtained either from grid or captive power plants of the
individual manufacturing units.

37
  Salient features of Indian cement industry

Indian cement industry is the second largest in the world with an installed capacity of
135 MTPA. It accounts for nearly 6% of the world production.
There are 124 large plants and around 365 mini plants. The industry presents a
mixed picture with many new plants that employ state-of-the-art dry process
technology and a few old wet process plants having wet process kilns.
Production from large plants (with capacity above 1 MTPA) account for 85% of the
total production.
The cement industry has achieved significant progress in terms of reducing the
overall energy intensity.
Dry process plants that the weighted average thermal energy consumption was 734
kCal/kg clinkers, and weighted average electrical energy consumption was 89
kWh/tonne of cement. The best energy consumption are 692 kCal/kg. clinker and 66
kWh/ton of cement.

 GROWTH OF CEMENT INDUSTRY: A PROFILE

At the outset it may be recognized that cement is one of the core industries defined
under the Industrial Policy Resolutions adopted in the early stage of planning in India.
Its growth implications essentially have to be seen in the larger context of national
economy rather than in a regional or sub-regional context. There are three important
features characterizing the industry. First, the basic raw material for the industry is
limestone, which like all minerals is fixed in quantity. Therefore, the present rate of its
use should consider demand-supply situations in the long run. Second, and more

38
important is that the industry may potentially have adverse environmental impact
through three different routes: (a) converting culturable/non-culturable land from
their present uses into quarries and thus, disturbing the vegetation and ecosystem; (b)
removing the limestone from the soil and thereby affecting the moisture profile as
well as the structure of aquifers; and (c) creating air pollution which could be
hazardous for human as well as animal health and for crop-yields. The third important
feature of the industry is that it generates limited direct linkages in the regional
economy where the industry is located though, its indirect linkages are likely to be
quite significant. The indirect linkages mainly take place in the form of (a)
infrastructural development and provision of basic amenities (i.e. roads, ports,
schools, hospitals etc.
(b) development of irrigation (i.e. dams, canals etc.) and
(c) housing-construction - all having substantial income employment linkages at the
level of national economy. It is therefore important to examine the industry's growth
profile by focusing on the important questions such as:
What should be the optimum rate of exploration / utilization of Limestone
What is the nature and magnitude of the environmental impact at the projected rate
of growth?
How much would be the direct employment-income linkages within the region's
economy livelihood of people.

39
 SWOT ANALYSIS OF ACC CEMENT

“STRATEGY IS A PATTERN IN A SERIES OF DECISIONS OR ACTIONS.”

- HENRY MINTZBERG (1994)

SWOT Analysis explores the relationship between the environmental

influences and the strategic capabilities of an organization compared to its
competitors. The importance of SWOT is revealed by the value of the
strategies it generates. A SWOT item that generates no strategies is not
important.

STRENGTHS
· · It is having a good image and brand loyalty among consumers.
· · Service is good
· · Perceived to be of very superior quality cement when compared to others
· · They have same price prevailing for wholesale at dealers/stockiest retailers end.

WEAKNESS
· · The competitors are doing much promotional activity rather than ACC Limited
that’s why it facing more problems in selling of product in the market.
· · Lack of awareness program for consumers.

OPPORTUNITY
· · People are opting for more stable structures and intensive use of cement is
taking place, even government is spending heavily on infrastructure projects.
Thus, this is the right time to fully tap these markets.
· · Foreign direct investment in infrastructure sector going to increase in coming
years, which will increase the demand of cement.
· · Roads are undergoing through the transformation process through which the
traditional method of road building will be replaced by modern concrete roads.

40
THREATS
· · Large number of players in cement industry makes it more competitive for ACC
to carefully price its product and at the same time satisfy its dealers and
customers.
· · Players such as Jaypee Cement, Prism Cement, and Birla Samrat are eating up
considerable market share.
· · Due to India’s exponential growth many new international cement companies
are expected in coming years which will bring a tide of change and can start
price war.
· · The emergence of small players in this market may increase the competition and
start the malpractices, and heavy discounts to retailers.They can also influence
many retailers by giving better profit margin, and other benefits.

41
 RESEARCH
METHODOLOGY

42
 OBJECTIVES
 To Study the supply chain management of ACC Limited in Area Office Shimla
 To study the problems faced by dealers
 To find out the dealer’s opinion about certain aspect of ACC Cement such as
supply, demand etc.

RESEARCH DESIGN

1. Hypothesis:
 Null Hypothesis: Supply chain of ACC in Area Office Shimla is facing
problems
 Alternative Hypothesis: There is no problem in supply chain of ACC in
Area Office Shimla

2. Universe of the Study:

The universe of the study comprise of ACC Area Office Shimla,
employees of ACC Area office Shimla, Dealers, Cement Dispatch Section- Barmana
(H.P. - Bilaspur) and Truck Operator Union-Bilaspur.

3. Sample Size:
For the purpose of the study, samples are selected randomly from
Shimla and Solan District.
The following table summarized the sample size in terms of numbers of surveyed
Dealers in two districts
 No. Of Dealers Surveyed in Shimla District = 18
 No. Of Dealers Surveyed in Solan District = 09
 Total No. Of Dealers Surveyed = 27

43
Beside this
 Person Interviewed = Area In charge and Logistics In charge of Acc Bilaspur,
Truck Union Leader- Bilaspur

SOURCES OF DATA COLLECTION

Data is collected using both primary sources and the secondary

Sources
1. Primary sources: We collected the primary data by Means of General form
Questionnaire along with personal interviews, since a few open ended
questions require clarification
 Questionnaire and Interview:
The data is collected from Dealers with the help of
questionnaire generated for this purpose. The questionnaire consists of
single parts. The questionnaires have been thoroughly discussed with the
respondent to clarify doubts, if any, regarding what has been asked. It had
taken us nearly Four weeks to complete the survey work.
The respondents have been required to give their answer by
putting tick mark across the multiple choice questions and in open Ended
questions the respondents were asked to express their views in their own
words. Almost all the respondents have been contacted and interviewed
personally at the time of filling up the questionnaire. Then their replies
have been received and further clarification and supplementary information
considered to be necessary have been secured.

Overall, we have collected 27 questionnaires from Dealers group.

44
2. Secondary Data:
We have also collected the secondary data by means of the documentary
sources such as:

 Company records
 Registers files booklets
 Magazine
 Journals
 Company Website

SCOPE OF THE STUDY

The study has been conducted to study the supply chain of ACC
Limited and to find out problems of dealers of ACC.

Also to analyze the survey data, and thereby giving the best possible suggestions
as solutions to the problems faced by the dealers and problems in supply chain of
ACC.

NEED FOR THE STUDY

Need for study was felt due to the fact that dealers were facing the problems
regarding the regular supply of cement. Most of them were not able to get delivery
of cement in time. The research work also acted as a source to find out the reason
for delay in supply of cement.

45
 LIMITATIONS OF THE STUDY

 The major problem of the survey was that most of the respondents being very
loyal to ACC didn’t give exact answers. Like they didn’t talk much about what
problems they are facing

 Once we got the questionnaire filled, we need to restart the conversation in a

much generalized way and talk about the problems they are facing. Also most
of dealers were not available at their shops. So to complete the survey within 6
weeks of time seems to be a bit difficult

 Some of the respondents may have told their average monthly sale more than
the actual. Because all of them think that the monthly sale attached with the
market image of their shop

 Few dealers refused to answer some question at all. So the actual figures can be
somewhat different from the one that we have found out

 Also the study is applicable for short term only because problems of dealers
used to vary with time depending upon supply of cement and other issues

 Also within a restricted time of 6 weeks we cannot cover many dealers. So the
sample size for the study is limited.

46
 Introduction
To
Supply Chain
Management

47
 SUPPLY CHAIN MANAGEMENT

Supply chain management (SCM) is the management of a network of

interconnected businesses involved in the ultimate provision of product and service
packages required by end customers (Harland, 1996). Supply Chain Management
spans all movement and storage of raw materials, work-in-process inventory, and
finished goods from point of origin to point of consumption (supply chain).

A supply chain is a network of facilities and distribution options that performs the
functions of procurement of materials, transformation of these materials into
intermediate and finished products, and the distribution of these finished products to
customers. Supply chains exist in both service and manufacturing organizations,
although the complexity of the chain may vary greatly from industry to industry and
firm to firm.

Another definition is provided by the APICS Dictionary when it defines SCM as the
"design, planning, execution, control, and monitoring of supply chain activities with
the objective of creating net value, building a competitive infrastructure, leveraging
worldwide logistics, synchronizing supply with demand, and measuring performance
globally."

48
 LOGISTICS

Logistics is the management of the flow of goods, information and other resources
between the point of origin and the point of consumption in order to meet the
requirements of consumers (frequently, and originally, military organizations).
Logistics involves the integration of information, transportation, inventory,
warehousing, material handling, and packaging, and occasionally security. Logistics is
a channel of the supply chain which adds the value of time and place utility. Today the
complexity of production logistics can be modelled, analyzed, visualized and
optimized by plant simulation software.

Production logistics

The term production logistics is used to describe logistic processes within an industry.
The purpose of production logistics is to ensure that each machine and workstation is
being fed with the right product in the right quantity and quality at the right time. The
concern is not the transportation itself, but to streamline and control the flow through
value-adding processes and eliminate non–value-adding ones. Production logistics can
be applied to existing as well as new plants. Manufacturing in an existing plant is a
constantly changing process. Machines are exchanged and new ones added, which
gives the opportunity to improve the production logistics system accordingly.
Production logistics provides the means to achieve customer response and capital
efficiency.

Production logistics is becoming more important with decreasing batch sizes. In many
industries (e.g. mobile phones), a batch size of one is the short-term aim, allowing
even a single customer's demand to be fulfilled efficiently. Track and tracing, which is
an essential part of production logistics—due to product safety and product reliability
issues—is also gaining importance, especially in the automotive and medical
industries.

49
 SAP SUPPLY CHAIN MANAGEMENT

Planning, Execution, And Collaboration across the Responsive Supply Network

You face enormous pressure to reduce costs while increasing innovation and
improving customer service and responsiveness. SAP Supply Chain Management
(SAP SCM) enables collaboration, planning, execution, and coordination of the entire
supply network, empowering you to adapt your supply chain processes to an ever-
changing competitive environment.

SAP SCM is part of the SAP Business Suite, which gives organizations the unique
ability to perform their essential business processes with modular software that is
designed to work with other SAP and non-SAP software. Organizations and
departments in all sectors can deploy SAP Business Suite software to address specific
business challenges on their own timelines and without costly upgrades.

SAP SCM can help transform a linear, sequential supply chain into a responsive
supply network – in which communities of customer-centric, demand-driven
companies share knowledge, intelligently adapt to changing market conditions, and
proactively respond to shorter, less predictable life cycles. SAP SCM provides broad
functionality for enabling responsive supply networks and integrates seamlessly with
both SAP and non-SAP software.

The application:

 Delivers planning and execution functions that are integrated by design

 Supports best practices and provides preconfigured software for enabling
collaborative business, accelerating implementation, and reducing costs
 Is recognized by key industry analysts as the market-leading SCM application

50
Real-time demand and signal-based replenishment need to drive supply chains.
Companies need to balance supply and demand and run their businesses based on
actual-versus-forecasted demand.

With SAP SCM, you can model your existing supply chain; set goals; and forecast,
optimize, and schedule time, materials, and other resources with these planning
activities:

 Demand planning and forecasting

 Safety stock planning
 Supply network planning
 Distribution planning
 Strategic supply chain design

Key Planning Benefits of SAP Supply Chain Management

SAP SCM enables you to:

 Increase demand accuracy and order fulfilment satisfaction levels

 Reduce inventory levels and increased inventory turns across the network
 Increase profitability and productivity
 Integrate sales and operations planning process

51
 SUPPLY CHAIN MANAGEMENT PROBLEMS

 Distribution Network Configuration: number, location and network missions

of suppliers, production facilities, distribution centers, warehouses, cross-docks
and customers.
 Distribution Strategy: questions of operating control (centralized,
decentralized or shared); delivery scheme, e.g., direct shipment, pool point
shipping, cross docking, DSD (direct store delivery), closed loop shipping;
mode of transportation, e.g., motor carrier, including truckload, LTL, parcel;
railroad; intermodal transport, including TOFC (trailer on flatcar) and COFC
(container on flatcar); ocean freight; airfreight; replenishment strategy (e.g.,
pull, push or hybrid); and transportation control (e.g., owner-operated, private
carrier, common carrier, contract carrier, or 3PL).
 Trade-Offs in Logistical Activities: The above activities must be well
coordinated in order to achieve the lowest total logistics cost. Trade-offs may
increase the total cost if only one of the activities is optimized. For example,
full truckload (FTL) rates are more economical on a cost per pallet basis than
less than truckload (LTL) shipments. If, however, a full truckload of a product
is ordered to reduce transportation costs, there will be an increase in inventory
holding costs which may increase total logistics costs. It is therefore imperative
to take a systems approach when planning logistical activities. These trade-offs
are key to developing the most efficient and effective Logistics and SCM
strategy.
 Information: Integration of processes through the supply chain to share
valuable information, including demand signals, forecasts, inventory,
transportation, potential collaboration, etc.
 Inventory Management: Quantity and location of inventory, including raw
materials, work-in-progress (WIP) and finished goods.
 Cash-Flow: Arranging the payment terms and methodologies for exchanging
funds across entities within the supply chain.

52
 SUPPLY CHAIN FLOW CHART OF ACC SHIMLA

START

DEALER
(SEND ORDER TO AREA OFFICE)
LESS CREDIT
SHIMLA)
ORDER

AREA OFFICE SHIMLA

CREDIT CHECK

CREDIT
OK NO

Yes

ORDER PLACED TO PLANT

GAGAL (BILASPUR)
THROUGH SAP

A
53
 A

ORDER ACCEPTED BY LOGISTIC

SECTION AT PLANT
GAGAL(BILASPUR)

DE ORDER FORWARD TO

BY LOGISTIC DEPARTMENT
CEMENT DISPATCH SECTION
(CDS)

ORDER FORWARD TO

TRANSPORTATION

CALL THE TRUCK DRIVERS & SEND

THEM TO THE PLANT

(PUKAR)

54
 A

TRUCK DRIVERS GET GATE PASS

& LIST

TRUCK LOAD & OUT

MAKING BILLS DEALER GET MESSAGE

ABOUT THE TRUCKS
(Including taxes) & PRINT

DISPATCHING THE BILLS TO TRUCK ARRIVED AT THE

THE RESPECTED DEALERS DEALER

CHECK ORDER & UNLOAD

STOP TRUCK

STOP
55
 CYCLIC PROCESS

56
 SUPPLY CHAIN PROCESS OF ACC SHIMLA

1. Dealer: - Dealer place order to the ACC-Area Office Shimla according to his/her
demand. Dealer can also check their credit before placing the order. So dealer place
order according to the credit
2. At Area office Shimla: - Area Office Shimla accepts the order from the dealers and
checks their credit. If credit is OK than order is placed to the plant at Gaggal
(Bilaspur) using SAP. If credit is not OK than order is not placed to plant and Area
office contacts the dealers and tell them about their credit.

3. At plant Gagal (Bilaspur):- At plant Gagal the orders accepted by the logistics
section and forward it to the Cement Dispatch Section (CDS). CDS forward it to the
transportation.

4. Transportation:- Union leader in the transportation get the order and call the truck
drivers and send them to the plant(ACC).This step is called as PUKAR (a Hindi
word).

5. Truck drivers get the gate pass and list of order at the plant (ACC) (Truck load and
out)

6. When the truck leaves the plant dealer get the message about dispatching of the
truck from the plant.

7. After that bills are made according to the dealers. These bills include cost and all
taxes. And then print the bills and send them to the dealers.

8. Dealers get the material, check the order and unload the truck.

57
 Data
Collected

58
Q1. How long you are in dealership with ACC?
 Less than 1 year
 1-2 years
 3-5 years
 More than 5 years



1 Ratan lal & son More than 5 Years
2 Mittal Traders Less than 1 year
3 Roop Hard Hardware More than 5 Years
4 Shri mahun Nag Brothers More than 5 Years
5 Mr. Mukesh Sharma More than 5 Years
6 Sweti Associate 2-3 Years
7 Ved Kumar Khuller More than 5 Years
8 Bindra Store More than 5 Years
9 Jain Traders More than 5 Years
10 P.K. Construction co. More than 5 Years
11 Om coal cos. More than 5 Years
12 Ravi Sethi Kandhaghat 2-3 Years
13 ENN Emmess Traders 4-5 Years
14 Joshi Brothers 4-5 Years
15 Jai Bhawani Traders More than 5 Years
16 Sandeep Brothers 2-3 Years
17 Highway Hardware More than 5 Years
18 Palak Traders 2-3 Years
19 Shivalik Agencies More than 5 Years
20 Jai Durga Traders More than 5 Years
21 Universal Traders More than 5 Years
22 Sunil Kumar Sood More than 5 Years
23 Jupiter India Sales More than 5 Years
24 Harish Brothers More than 5 Years
25 Diwana Mal & associates More than 5 Years
26 R.P. Sama More than 5 Years
27 Seth Cement Store More than 5 Years

59
Q2. What is your monthly average tonnage (in MT)?
_______________

1 Ratan lal & son 50

2 Mittal Traders 250
3 Roop Hard Hardware 130
4 Shri mahun Nag Brothers 450
5 Mr. Mukesh Sharma 100
6 Sweti Associate 60
7 Ved Kumar Khuller 50
8 Bindra Store 200
9 Jain Traders 120
10 P.K. Construction co. 60
11 Mr Luckey 60
12 Ravi Sethi Kandhaghat 70
13 ENN Emmess Traders 300
14 Joshi Brothers 200
15 Jai Bhawani Traders 50
16 Sandeep Brothers 200
17 Highway Hardware 100
18 Palak Traders 160
19 Shivalik Agencies 500
20 Jai Durga Traders 200
21 Universal Traders 700
22 Sunil Kumar Sood 200
23 Jupiter India Sales 120
24 Harish Brothers 350
25 Diwana Mal & associates 100
26 R.P. Sama 150
27 Seth Cement Store 120

60
Q3. In which season demand is more?
o January – March
o April – June
o July – September
o October - December

1 Ratan lal & son April-June

2 Mittal Traders October -December
3 Roop Hard Hardware July-September
4 Shri mahun Nag Brothers April-June
5 Mr. Mukesh Sharma April-June
6 Sweti Associate July-September
7 Ved Kumar Khuller July-September
8 Bindra Store July-September
9 Jain Traders April-June
10 P.K. Construction co. April-June
11 Mr Luckey April-June
12 Ravi Sethi Kandhaghat April-June
13 ENN Emmess Traders July-September
14 Joshi Brothers April-June
15 Jai Bhawani Traders July-September
16 Sandeep Brothers January-March
17 Highway Hardware April-June
18 Palak Traders July-September
19 Shivalik Agencies July-September
20 Jai Durga Traders July-September
21 Universal Traders July-September
22 Sunil Kumar Sood July-September
23 Jupiter India Sales April-June
24 Harish Brothers July-September
25 Diwana Mal & associates July-September
26 R.P. Sama July-September
27 Seth Cement Store April-June

61
Q4. Is logistic a problem with ACC?
 Yes
 No
if yes, specify__________
_______________________________

1 Ratan lal & son No

2 Mittal Traders Yes
3 Roop Hard Hardware Yes
4 Shri mahun Nag Brothers No
5 Mr. Mukesh Sharma Yes
6 Sweti Associate Yes
7 Ved Kumar Khuller No
8 Bindra Store Yes
9 Jain Traders Yes
10 P.K. Construction co. Yes
11 Mr Luckey Yes
12 Ravi Sethi Kandhaghat Yes
13 ENN Emmess Traders Yes
14 Joshi Brothers Yes
15 Jai Bhawani Traders No
16 Sandeep Brothers Yes
17 Highway Hardware Yes
18 Palak Traders Yes
19 Shivalik Agencies Yes
20 Jai Durga Traders No
21 Universal Traders Yes
22 Sunil Kumar Sood Yes
23 Jupiter India Sales No
24 Harish Brothers Yes
25 Diwana Mal & associates Yes
26 R.P. Sama Yes
27 Seth Cement Store Yes

62
Q5. Presently, how much time does it take you to get the material?
 2 day
 3-4 days
 5-6 days
 More than 6 days 

1 Ratan lal & son 3-4 Days

2 Mittal Traders 3-4 Days
3 Roop Hard Hardware More Than 6 Days
4 Shri mahun Nag Brothers 3-4 Days
5 Mr. Mukesh Sharma More Than 6 Days
6 Sweti Associate More Than 6 Days
7 Ved Kumar Khuller 5-6 Days
8 Bindra Store More Than 6 Days
9 Jain Traders 3-4 Days
10 P.K. Construction co. More Than 6 Days
11 Mr Luckey 5-6 Days
12 Ravi Sethi Kandhaghat More Than 6 Days
13 ENN Emmess Traders 3-4 Days
14 Joshi Brothers More Than 6 Days
15 Jai Bhawani Traders 5-6 Days
16 Sandeep Brothers 5-6 Days
17 Highway Hardware More Than 6 Days
18 Palak Traders More Than 6 Days
19 Shivalik Agencies More Than 6 Days
20 Jai Durga Traders 3-4 Days
21 Universal Traders More Than 6 Days
22 Sunil Kumar Sood More Than 6 Days
23 Jupiter India Sales 3-4 Days
24 Harish Brothers More Than 6 Days
25 Diwana Mal & associates More Than 6 Days
26 R.P. Sama More Than 6 Days
27 Seth Cement Store More Than 6 Days

63
Q6. Before 2010 what was the lead time i.e. time interval to receive orders?
 2 day
 3-4 days
 5-6 days
 More than 6 days 

1 Ratan lal & son 5-6 Days

2 Mittal Traders 2 Days
3 Roop Hard Hardware 3-4 Days
4 Shri mahun Nag Brothers 2 Days
5 Mr. Mukesh Sharma 2 Days
6 Sweti Associate 2 Days
7 Ved Kumar Khuller 5-6 Days
8 Bindra Store 3-4 Days
9 Jain Traders 2 Days
10 P.K. Construction co. 3-4 Days
11 Mr Luckey 5-6 Days
12 Ravi Sethi Kandhaghat 2 Days
13 ENN Emmess Traders 2 Days
14 Joshi Brothers 3-4 Days
15 Jai Bhawani Traders 5-6 Days
16 Sandeep Brothers 3-4 Days
17 Highway Hardware 3-4 Days
18 Palak Traders 3-4 Days
19 Shivalik Agencies 2 Days
20 Jai Durga Traders 2 Days
21 Universal Traders 3-4 Days
22 Sunil Kumar Sood 5-6 Days
23 Jupiter India Sales 3-4 Days
24 Harish Brothers 2 Days
25 Diwana Mal & associates 3-4 Days
26 R.P. Sama 3-4 Days
27 Seth Cement Store 3-4 Days

64
Q7. Do you get message about the truck processing your order?
 Yes

 Frequently
if yes, how much is the time between message receiving and order getting?
o Less than 5 hrs
o 5-6 hr
o More than 6 hrs

1 Ratan lal & son Yes

2 Mittal Traders Yes
3 Roop Hard Hardware Yes
4 Shri mahun Nag Brothers Yes
5 Mr. Mukesh Sharma Yes
6 Sweti Associate Frequently
7 Ved Kumar Khuller Yes
8 Bindra Store Yes
9 Jain Traders No
10 P.K. Construction co. No
11 Mr Luckey Yes
12 Ravi Sethi Kandhaghat Yes
13 ENN Emmess Traders Yes
14 Joshi Brothers Yes
15 Jai Bhawani Traders No
16 Sandeep Brothers Yes
17 Highway Hardware No
18 Palak Traders Yes
19 Shivalik Agencies No
20 Jai Durga Traders No
21 Universal Traders Yes
22 Sunil Kumar Sood Yes
23 Jupiter India Sales Yes
24 Harish Brothers Yes
25 Diwana Mal & associates Frequently
26 R.P. Sama yes
27 Seth Cement Store No

65
Q8. How much time does it take to unload the truck (in hrs.)?
 Less than 1 hour
 1-2 hours
 3-4 hours
 More than 4 hours

1 Ratan lal & son Less than 1 hr

2 Mittal Traders 1-2 hr
3 Roop Hard Hardware Less than 1 hr
4 Shri mahun Nag Brothers 1-2 hr
5 Mr. Mukesh Sharma Less than 1 hr
6 Sweti Associate 1-2 hr
7 Ved Kumar Khuller 3-4 hr
8 Bindra Store 1-2 hr
9 Jain Traders 3-4 hr
10 P.K. Construction co. Less than 1 hr
11 Mr Luckey 1-2 hr
12 Ravi Sethi Kandhaghat Less than 1 hr
13 ENN Emmess Traders Less than 1 hr
14 Joshi Brothers Less than 1 hr
15 Jai Bhawani Traders Less than 1 hr
16 Sandeep Brothers Less than 1 hr
17 Highway Hardware 1-2 hr
18 Palak Traders 3-4 hr
19 Shivalik Agencies 3-4 hr
20 Jai Durga Traders 1-2 hr
21 Universal Traders 3-4 hr
22 Sunil Kumar Sood 1-2 hr
23 Jupiter India Sales Less than 1 hr
24 Harish Brothers 3-4 hr
25 Diwana Mal & associates 1-2 hr
26 R.P. Sama Less than 1 hr
27 Seth Cement Store Less than 1 hr

66
Q9. How is the behaviour of truck drivers with you?
 Good
 Average
 Poor

1 Ratan lal & son Good

2 Mittal Traders Average
3 Roop Hard Hardware Average
4 Shri mahun Nag Brothers Average
5 Mr. Mukesh Sharma Good
6 Sweti Associate Average
7 Ved Kumar Khuller Good
8 Bindra Store Good
9 Jain Traders Average
10 P.K. Construction co. Good
11 Mr Luckey Good
12 Ravi Sethi Kandhaghat Good
13 ENN Emmess Traders Good
14 Joshi Brothers Good
15 Jai Bhawani Traders Good
Sandeep Brothers
16 Kumarhatti Good
17 Highway Hardware Good
18 Palak Traders Good
19 Shivalik Agencies Poor
20 Jai Durga Traders Poor
21 Universal Traders Average
22 Sunil Kumar Sood Average
23 Jupiter India Sales Good
24 Harish Brothers Good
25 Diwana Mal & associates Average
26 R.P. Sama Good
27 Seth Cement Store Good

67
 SUGGESTION FROM DEALERS

1. Most of the dealers are looking for proper supply of cement. Most of them
want company to provide them enough supply of cement to meet the market
demand.

2. Some dealers have requested to process the orders even during Sunday and
other holidays

3. Some of them have requested the company to provide them proper Bill (inn
voice) with the truck (Material)

4. Some of them have requested the company to provide delivery of material at

the third day of order at most

5. Some dealers have requested the company to provide Truck Driver telephone
number in SMS

6. Any kind of system by which Truck Driver (Carrying their order) may be
located should be provided to dealers

7. Some of them are not satisfied with more than one dealer in the same
location

8. Mason meet should be timely

9. Company should check whether the dealers have received the truck
processing their order

68
 Finding and
Analysis

69
Q1. How long you are in dealership with ACC?

Less than 1 Year 3.70% 1

2-3 Years 14.81% 4
4-5 Years 7.41% 2
More Than 5 Years 74.07% 20

3.70%

14.81%
Less than 1 Year

7.41%
2-3 Years

74.07%
4-5 Years

More Than 5 Years

The graph clearly shows that the most of dealers are more than 5 year
in dealership with ACC (74.07%). Even most of them are in dealership with ACC for
more than 20 year.
The main reason behind this is - ACC had set up its plant in Himachal
Pradesh 25 year back when there were no other cement manufacturers in the market.
Also most of the dealers are well satisfied with the services provided to them by ACC
Limited. The service includes different type of incentive schemes meant for the
dealers Like Lakshya etc and regular visits by the company officials.

70
 0
100
200
300
400
500
600
700
800

71
Ratan lal & son

Roop Hard Hardware

Mr. Mukesh Sharma

Ved Kumar Khuller

_______________

Jain Traders

Mr Luckey

ENN Emmess Traders

Jai Bhawani Traders

Highway Hardware

Shivalik Agencies

Universal Traders
Q2. What is your monthly average tonnage (in MT)?

Jupiter India Sales

Diwana Mal & associates

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
Seth Cement Store
Series1
Q3. In which season demand is more?

January-March 3.70% 1
April-June 40.74% 11
July-September 51.85% 14
October-December 3.70% 1

3.70% 3.70%
January-March

40.74% April-June
51.85%

July-September

October-December

The graph clearly shows that demand for the cement is more in July-
September (51.85%) followed by April-June (40.74%). Also in other season demand
of cement is very less (3.70% in January-March and October-December).

This shows that the demand of cement shows seasonal fluctuation

leading to more sale of cement between April-September.

72
 Q4. Is logistic a problem with ACC?
Yes
No

Yes 77.78% 21
No 22.22% 6

22.22%

77.78%

Yes No

As the graph shows 77.78% of Dealers feels that logistics is a problem

with ACC Limited.

The reason why most of dealers reported problem in logistics is because,

in 2010 they are facing problems related to supply of cement. They are not getting the
required supply of cement to meet the market demand. It takes them 4-12 days to get
the delivery of the cement in 2010.

73
Q5. Presently, how much time does it take you to get the material?

More Than 6 Days 59.26% 16

3-4 Days 25.93% 7
5-6 Days 14.81% 4

14.81%

More Than 6 Days

25.93%
59.26%
3-4 Days
5-6 Days

The above graph shows that for most of dealers (59.26%) it takes More
than 6 days to get supply of cement in 2010.

The main reason behind the delay in supply of cement is maintenance

work which is going on in Gaggal Plant of ACC Limited. Also sometime sudden
increase in demand takes time to cope up.

74
Q6. Before 2010 what was the lead time i.e. time interval to receive orders?

2 Days 37.04% 10
3-4 Days 44.44% 12
5-6 Days 18.52% 5

18.52%
37.04% 2 Days

3-4 Days
44.44%
5-6 Days

The above graph clearly shows that before 2010 most of dealers were
getting supply of cement within 3-4 days (44.44%). At most they were getting the
supply of cement within 6 days (18.52%). Even 37.04% of dealers were getting the
supply of cement within 2 days only.

It shows that before 2010 supply of cement was regular and on time.

75
Q7. Do you get message about the truck processing your order?

No 25.93% 7
Yes 66.67% 18
Frequent 7.41% 2

7.41%
25.93%
No

yes
66.67%
Frequent

The graph shows that the 66.67% of dealers receives messages about the
trucks processing their orders. The 25.93% of the dealers said that they are not getting
any messages about trucks processing their orders. Remaining 7.41% of dealers said
that they receive messages frequently.

The reason why dealers are not receiving any messages or frequently
able to receive SMS can be that they are using other mobile number temporarily or
permanently and have not informed about it to ACC Limited.

76
 Q8. How much time does it take to unload the truck (in hrs.)?

Less than 1 hr 44.44% 12

1-2 hr 33.33% 9
3-4 hr 22.22% 6

22.22%
Less than 1 hr
44.44%

1-2 hr
33.33%

3-4 hr

The graph clearly shows that it takes less than one hour to unload the
truck for most of the dealers (44.44%). At most they are able to unload the truck in 4
hours.

Thus, it shows that there is no problem in unloading the trucks.

77
Q9. How is the behaviour of truck drivers with you?

Good 62.96% 17
Average 29.63% 8
Poor 7.41% 2

7.41%
Good
29.63%

62.96% Average

Poor

The above graph shows that most of the truck drivers behave properly with the
dealers.

78
 Conclusion
And
Recommendations

79
 CONCLUSION

 There is problem in regular supply of cement in 2010

 Before 2010 supply of Cement was regular
 Demand of cement shows seasonal fluctuation leading to more sale of cement
between April-September
 The main reason behind delay in supply of cement is maintenance work which
is going on in Gaggal Plant of ACC Limited. Also sometime sudden increase in
demand takes time to cope up
 Most of Dealers gets the SMS about truck processing their order

RECOMENDATIONS
Based upon the time spent by me in the market, useful suggestions of the dealers and
the findings from the survey, following recommendations can be suggested for
increasing sales and effectiveness of ACC

 Many of the ACC dealers used to shop other type of building materials along
with cement, in the same shop. This should not be permitted by ACC. Because
selling of these building materials is more profitable than cement, so the
cement selling becomes less important for these dealers. They don’t give
proper attention to the company officials and also to the various schemes of
increasing sales. This in turn brings reduced sales to the company.

 To Supply adequate cement to the dealers on time. The dealer’s complaint was
that they receive less supply cement according to their demand, if they get
ample amount than the sale of the ACC cement will increase many fold.

80
 Introduce gift schemes to customers. Since the ACC is priced high than other
many brands so it should focus on this scheme. So introducing gift schemes to
customers will inspire them to buy the product.

 Extend the advertisement facility by media such as TV and newspapers

also ensuring that it reaches the low class people too.

 Majority of the respondents agreed that ACC cement is having a reasonably

Good quality. So retaining the quality is highly important in the Marketing
point of view.

 The ACC should build warehouses to store finished goods, so as to smooth

discrepancies between production and quantities desired by the market.

81
 BIBLIOGRAPHY

Online Sources:

 www.acclimited.com
 www.google.com
 www.wikipedia.com
 www.about.com

Books Refered:

 Research Methodology-Methods and Techniques

By: C.R.Kothari

 Marketing Management

By: Philip Kotler

82
 ANNEXTURE

83
 QUESTIONNAIRE

Dealer Name:
Location:
Date:

Q1. How long you are in dealership with ACC?

 Less than 1 year
 1-3 years
 3-5 years
 More than 5 years

Q2. What is your monthly average tonnage?

_______________

Q3. In which season demand is more?

o January – March
o April – June
o July – September
o October - December

Q4. Is logistic a problem with ACC?

 Yes
 No

If Yes, specify ____________

________________________

84
Q5. Presently, how much time does it take you to get the material?

 2 day
 3-4 days
 5-6 days
 More than 6 days

Q6. In past what was the lead time i.e. time interval to receive orders

 2 day
 3-4 days
 5-6 days
 More than 6 days

Q7. Do you get message about the truck processing your order?

 Yes
 No
 Frequently

If yes, how much is the time between message receiving and order getting?

o Less than 5 hrs

o 5-6 hr
o More than 6 hrs

Q8. How much time does it take to unload the truck (in hrs.)?

 Less than 1 hour

 1-2 hours
 3-4 hours
 More than 4 hours

85
Q9. How is the behaviour of truck drivers with you?

 Good
 Average
 Poor

Q10. Do you have any suggested improvements? _________

If yes, please specify__________________

86
 ACC Cement “Project Report on Analysis of Supply Chain
Management” Synopsis

Student Names: Lalit Badoga (09MB03)

Vivek Sharma (09MB08)

Vipin Jaryal (09MB25)

Industry Guide: Mr. Arun Nainta

Objectives:

 To Study the supply chain management of ACC Limited

 To study the problems faced by dealers
 To find out dealer’s opinion about certain aspect of ACC Cement such as
supply, demand etc.

Findings:

1. Most of dealers are well satisfied with the services provided to them by ACC
Limited.

2. Demand of ACC Cement shows seasonal fluctuation leading to more sale of

cement between April-September.

3. In 2010 dealers are facing problems related to supply of cement. They are not
getting required supply of cement to meet market demand. It takes them 4-12
days to get delivery of cement in 2010.

87
 4. The main reason behind delay in supply of cement is maintenance work which
is going on in Gaggal Plant of ACC Limited. Also sometime sudden increase in
demand takes time to cope up.

5. Before 2010 supply of cement was regular and on time.

6. The reason why dealers are not receiving any messages or frequently able to
receive SMS can be that they are using other mobile number temporarily or
permanently and have not informed about it to ACC Limited.

7. There is no problem in unloading the trucks.

8. Most of the truck drivers behave properly with the dealers.

Suggestions:

1. Many of ACC dealers used to shop other type of building materials along with
cement, in the same shop. This should not be permitted by ACC. Because
selling of these building materials is more profitable than cement, so the
cement selling becomes less important for these dealers. They don’t give
proper attention to the company officials and also to the various schemes of
increasing sales. This in turn brings reduced sales to the company.

2. To Supply adequate cement to dealers on time. The dealer’s complaint was that
they receive less supply cement according to their demand, if they get ample
amount than the sale of ACC cement will increase many fold.

3. Introduce gift schemes to customers. Since the ACC is priced high than other
many brands so it should focus on this scheme. So introducing gift schemes to
customers will inspire them to buy the product.

88
4. Extend the advertisement facility by media such as TV and newspapers
also ensuring that it reaches the low class people too.

5. Majority of the respondents agreed that ACC cement is having a reasonably

Good quality. So retaining the quality is highly important in the Marketing
point of view.

89