Slide 1

Managerial Economics Analysis Of

(Associated Cement Companies)

A project by

Anup Kothekar (roll no 12)Arathi Nair (roll no 14)Arshadayub Shaikh (roll no 15) INTRODUCTIONIndias 2nd largest cement producer in the world.Expected cement production in FY11 236.16 MPTA & FY12 262.61 MPTA.20 cement companies in India produce70% of total cement in India, ACC Ltd. Being the front runner.Total cement production in FY09 231 MPTA. VISION of ACC Ltd.Be one of the most respected companies in India recognized on challenging conventions & delivery on our promise.

ACC Ltd. (Associated Cement Companies) established in 1936.

16 modern cement factories , 40 RMX plant , 20 sale office, several zonal offices, worker force of 9000+ persons and dealers.

ACC is Largest User of Lime Stone in India.

Biggest Customer Of domestic Coal Industry, Indian Railways.

ACC Runs two formal Professional Technical Institutes

Major Products : Cement, Concrete, Consultancy Service.

Only Cement Company to Be Listed in Consumer Super Brands

Significant Events2005 Holcim Group Of Switzerland Acquired Major Stake In AMBUJA CEMENT INDIA LTD thereby increasing its total equity share from 13.8% to 34.69 % .Financial accounting year of the company changed to the calendar year from January To December

2006Changed the Name to ACC Company From The Associated Cement Companies Limited.CSR Initiative : ACC announces New Workplace policy for HIV-AIDS.

2008 First Sustainable Development Report ReleasedACC wins CNBC-TV18 INDIA BUSINESS LEADER AWARD In the category INDIA Corporate citizen of the year.ACC Cement Technology Institute was formally inaugurated2009ACC Receives Jamnalal Bajaj Uchit Vyavahar Puruskar of Council for Fair Business Practices.ACC is Allotted Coal Blocks in Madhya Pradesh and West Bengal.2010Kudithini Cement plant with capacity 1.1 MTPA was inaugurated.

HOLCIMHolcim is the single largest stakeholder in ACC Ltd.Holcim a Swiss giant, is a leading global supplier of cement and the company has been listed on the SIX Swiss Exchange since 1958.Ever since the takeover of ACC in 2005, Holcim has been influential in implementing its culture on it.Holcim was mainly responsible for ACC to generate its first ever Environmental Sustainability report.

PROFITS

ACC Ltd. (Profits per volume)2004-052006200720082009PBT (Rs. In crores)6841620193017372294PAT (Rs. In crores)5441232143912131607Cement sales (Rs. In crores)39025803699172838027Cement sales (Million tonnes)1318.9202121.5Percentage growth6.88.15.95.22.3Profit per volume (Rs. In crores/million tonnes)52.6285.7196.5082.71106.70 DIVIDEND YearsDividend Per Share (Rs.)Total Dividend (Rs. In crores)Dividend Distribution Tax (Rs. In crores)2004-057142.5017.53200615320.3220.70200720438.7663.74200820439.1263.79200923 504.1473.38

Over a period of 5 years, the dividend has increased from Rs. 7 to Rs.23 per equity share.Ratios2004-052006200720082009Current Ratio1.131.150.9910.73Debt Equity Ratio0.890.250.070.10.09Price earning per share (Rs.)17.2516.4413.747.3910.23Net worth per share (Rs.)89168221263320Net sales per share (Rs.)219310373388428Basic Earning per share (Rs.)21.2366.0276.7564.6385.6

MERGER & ACQUISITION2005ACILs shareholding in ACC increased to 34.69 % of the Equity share capital of ACC.2006Sold Mancherial Cement Works in June 2006.Sold land holdings in Okhla (Rs.140 crores).Disposed off its non-core assets/businesses viz. Synthetic Ferric Oxide (SFO) and Advance Microwave Material Centre (AMMC) facilities.Signed a Share Purchase Agreement with Almatis Holding , which has enabled to acquire a 40% stake in Almatis ACC Limited.

2007Acquired 14.3% equity stake in Shiva Cement Limited (SCL), Rourkela.Entered into marketing agreement with SCL.Divested its entire stake in its engineering subsidiary ACC Nihon Castings Ltd & Almatis ACC Limited.Sold the land and immovable assets of Bhupendra Cement Works.

2008Acquired 40% in Alcon Cement Company Private Limited (Alcon).Acquired from IDBI Bank Limited 12.41% equity shares of Bulk Cement Corporation (India) Limited, thereby increasing its shareholding to 94.65%.Sold ACC Machinery Company Limited, in March 2008 for a consideration of Rs. 45 crores.

To enhance its limestone reserves in Rajasthan, the Company acquired a 100% equity stake in National Limestone Company Private Limited (NLCPL).

Acquired 100% equity stake in Encore Cements & Additives Private Limited (ECAPL).

2009

SUSTAINABLE DEVELOPMENTPrevention of large quantities of dust generated.All transport equipment is enclosed, and the air both from the air stream and from the mills is treated in an electrostatic precipitator to remove its load of dust.According to pollution control norms - 50mg/Nm3 to 150 mg/Nm3. ACC voluntarily keeps it at 30mg/Nm3.Sustainable development is recognized by the company as a process of development that "meets the needs of the present without compromising the ability of future generations to meet their own needs".

Summary

To summarise the company, The company holds the potential to be one of the leading contributors to our economy in this segment and thereby to their vision of being one of the most respectable companies.Thank You