History & Profile of ACC Cement Works

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
Din Shaw 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 Din Shaw groups. ACC was formally
established on August 1, 1936. Sadly, F E Din Shaw, the man recognized as the
founder of ACC, died in January 1936. Just months before his dream could be
realized.

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 full name, The Associated Cement Companies Limited, itself
indicates the company’s origins from a merger. Many years later, some
stockbrokers in the country’s leading stock exchanges still refer to this company
simply as ‘The Merger’

The ACC Board comprises of 13 persons. These include executive, non-executive,

and nominee directors. This group is responsible for determining the objectives
and broad policies of the Company - consistent with the primary objective of
enhancing long-term shareholder value.

The Board meets once a month. Two other small groups of directors - comprising
Shareholders'/Investors' Grievance Committee and Audit Committee of the Board
of Directors - also meet once a month on matters pertaining to the finance and
share disciplines. During the last decade, there has been a streamlining of the
senior management structure that is more responsive to the needs of the Company's
prime business. A Managing Committee - comprising, in addition to the Managing
Director and the two executive directors, the presidents representing multifarious
disciplines: finance, production, marketing, research and consultancy, engineering
and human resources – meets once a week. Besides these bodies, there are senior
executives and other regional managers - based at the Company's corporate office
and at its marketing offices and manufacturing units -who contribute to the
development and operation of the various functions. While these groups form the
core management team that frames and guides corporate policy, ACC is proud of
its manpower strength of about 9,000 people, who comprise experts in various
disciplines assisted by a dedicated workforce of skilled persons. Quite a number of
them have logged many years of service with the organization. They come from all
parts of the country and belong to a variety of ethnic, cultural and religious
backgrounds. Because of such a cosmopolitan make-up, ACC can rightly be said to
embrace within its fold a family that forms a 'mini-India'.

A Strategic Alliance:

The house of Tata was intimately associated with the heritage and history of ACC,
right from its formation in 1936 up to 2000. The Tata group sold all 14.45% of its
shareholdings in ACC in three stages to subsidiary companies of Gujarat Ambuja
Cements Ltd. (GACL), who are now the largest single shareholder in ACC.
This enabled ACC to enter into a strategic alliance with GACL; a company reputed
for its brand image and cost leadership in the cement industry.
Old Vision of ACC:
New Vision:
 Mission of ACC

Maintain our leadership of the Indian cement industry through

Leadership the continuous modernization and expansion of our
manufacturing facilities and activities, and through the
establishment of a wide and efficient marketing network.
Achieve a fair and reasonable return on capital by promoting
Profitability productivity throughout the company.
Ensure a steady growth of business by strengthening our
Growth position in the cement sector.
Maintain the high quality of our products and services and
Quality ensure their supply at fair prices.
Promote and maintain fair industrial relations and an
Equity environment for the effective involvement, welfare and
development of staff at all levels.
Promote research and development efforts in the areas of
Pioneering product development and energy, and fuel conservation, and to
innovate and optimize productivity.
Fulfill our obligations to society, specifically in the areas of
Responsibility integrated rural development and in safeguarding the
environment and natural ecological balance.
 Milestones of ACC Limited
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 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.
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.

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 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
 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 Tamil Nadu.

Achievement of ACC Limited:

YEAR

1936 The Associated Cement Companies Limited incorporated on August 1

1947 India's first entirely indigenous cement plant installed at Chaibasa.

ACC Sindri uses waste material - calcium carbonate sludge -from fertilizer
1955
factory at Sindri to make cement
1956 Bulk Cement Depot established at Okhla, Delhi
Blast furnace slag, (a waste by-product from steel) from TISCO used at ACC
1961
Chaibasa to manufacture Portland Slag Cement.
Oilwell Cement manufactured at ACC Shahabad for cementation of oil wells
1961
up to adepth of 6,000 feet.
1961 Manufacture of Hydrophobic (waterproof) cement at ACC Khalari.
Manufacture of Portland Pozzolana Cement using naturally available materials.
1965
An Eco-friendly cements using an eco-friendly process.
ACC inducts use of pollution control equipment and high efficiency
1966 sophisticated electrostatic precipitators for its cement plants and captive power
plants decades before it becomes mandatory to do so.
Introduction of the energy efficient pre-calcination technology for the first time
1978
in India.
Commissioning of the first 1 MTPA (million tonne per annum) plant in the
1982
country at Wadi, Karnataka.
ACC achieves a breakthrough in import substitution by developing and
1984
supplying a special G type of oil well cement to ONGC.
ACC develops a new binder, working at sub-zero temperature, which is
1987
successfully used in the Indian expedition to Antarctica.
Incorporation of Bulk Cement Corporation of India, a JV with the Government
1992
of India.
1993 Commercial manufacture of ready-mixed concrete at Mumbai.
Commissioning of the new Wadi plant of 2.6 MTPA capacity in Karnataka, the
2001
largest in India, and among the largest sized kilns in the World.
 Awards & Accolades

 IMC Ramkrishna Bajaj National Quality Award - – Gagal wins Commendation

Certificate and New Wadi Plant wins Special Award for Performance Excellence
in the Manufacturing Sector, 2007.

 National Award for outstanding performance in promoting rural and

agricultural development – by ASSOCHAM

 Sword of Honour - by British Safety Council, United Kingdom for excellence in

safety performance.

 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.

 Indo German Greentech Environment Excellence Award

 Golden Peacock Environment Management Special Award - for outstanding
efforts in Environment Management in the large manufacturing 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

 Vishwakarma Rashtriya Puraskar trophy for outstanding performance in safety

and mine working
 Good Corporate Citizen Award - by PHD Chamber of Commerce and Industry
 Jamnalal Bajaj Uchit Vyavahar Puraskar - Certificate of Merit by Council for
 Fair Business Practices
 Greentech Safety Gold and Silver Awards - for outstanding performance in Safety
management systems by Greentech Foundation

 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 Pradesh Pollution.
Control Board.

 National Award for Fly Ash Utilisation - by Ministry of Power, Ministry of

Environment & Forests and Dept of Science & Technology, Govt of India - for
manufacture of Portland Pozzolana Cement.
 Good Corporate Citizen Award - by Bombay Chamber of Commerce and Industry
for working towards an environmentally sustainable industry while pursuing the
objective of creation of a better society.
 National Award for Excellence in Water Management - by the Confederation of
Indian Industry (CII)

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, A forestation,
Clean Mining, Environment Awareness and Protection.