PRESENTATION OF ACC LIMITED
Mohammad Suleman
MBA [I Sem., Div.-B]
Roll No.: 91
Under the Guidance of
Prof. Hrishikesh S Kakde
MGM
Institute of Management (IOM)
N-6, CIDCO, Aurangabad-431003
HISTORY
India is the second largest producer of cement in the world. No
wonder, India's cement industry is a vital part of its economy,
providing employment to more than a million people, directly or
indirectly. Ever since it was deregulated in 1982, the Indian
cement industry has attracted huge investments, both from
Indian as well as foreign investors.
In 1936, eleven cement companies belonging to Tatas, Khataus,
Killick Nixon and F E Dinshaw groups merged to form a single
entity, The Associated Cement Companies. Sir Nowroji B Saklatvala
was the first chairman of ACC. The first board of directors had
some prominent industrialists—J R D Tata, Ambalal Sarabhai,
Walchand Hirachand, Dharamsey Khatau, Sir Akbar Hydari,
Nawab Salar Jung Bahadur and Sir Homy Mody.
Growth
1. Industry to grow at 6-7 percent CAGR between FY 2018-20.
2. Capacity addition of 154 million tonnes per annum (mtpa) between 2013-2018.
3. Total installed capacity of 465 million tonnes as of Jun2018.
4. Domestic consumption to outpace supply in next three fiscals.
5. Second largest cement market.
6. With cement production capacity of nearly 465 million tonnes July 2018.
7. India’s cement production capacity is expected to reach 550-600 million tonnes
by 2025.
Prominent companies:
Cement industry performance
Background and inception
ACC Limited was established in 1936 by Mr FE Dinshaw when 10 existing cement
companies came together under one umbrella. Since inception, 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 specialised consultancy services. The company's
various manufacturing units are backed by a central technology support services
centre.
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.
ACC plants, mines and townships visibly demonstrate successful endeavours in
quarry rehabilitation, water management techniques and 'greening' activities.
Presently, it has about 16 cement works plants across the country.
2.2 Nature of business carried out.
ACC Limited is engaged in the business of cement and cement-related
products. The Company manufactures a range of products that cater to
construction needs from foundation to finish, including Ordinary Portland
Cement (OPC), Portland Blast Furnace Slag Cement (PSC), Portland
Pozzolana Cement (PPC), white cement and white cement-based products,
ready mix concrete, including specialty concrete, building products,
ACC set up India's first commercial Ready Mixed Concrete (RMX) plant in
Mumbai in 1994. Ready Mixed Concrete is one of the largest manufacturers
of RMX in India with about 85 modern plants in major cities such as
Mumbai, Bangalore, Kolkata, Chennai, Delhi, Hyderabad, Goa, Pune and
Ahmedabad.
ACC's pioneering efforts in introducing Ready Mixed Concrete (RMX)
coupled with the promotion of bulk cement handling facilities have been
responsible for redefining the pace and quality of construction activity in
metropolitan cities and in mega infrastructure projects.
PRODUCT /SERVICES
2.5 Area of Operaton
ACC Limited is India's foremost manufacturer of cement and ready mixed concrete
with 17 modern cement factories, more than 50 ready mixed concrete plants, a vast
distribution network of over 50000 dealers and retailers a countrywide spread of sales
offices.
Headquartered in Mumbai, ACC’s operations span the whole country with cement
factories, ready mix concrete plants, regional offices, sales units and area offices
Ownership pattern category Percentage of holding
Serial
No
1 Promoters 54.53%
2 Banks, financial institution,insurance 16.65%
companies & mutual fund
3 Foreign portfolio Investors 14.36%
4 Public and others 13.66%
5 NRI/ Foreign Nationals 0.65%
6 Central and state governments 0.15%
TOTAL 100%
Dec Dec Dec Dec Dec
'18 '17 '16 '15 '14
12 12 12 12 12
mths mths mths mths mths
Sources Of Funds
Total Share Capital 187. 187. 187. 187. 187. z
99 99 99 95 95
Equity Share Capital 187. 187. 187. 187. 187.
99 99 99 95 95
Reserves 10,3 9,17 8,47 8,25 8,04
39.6 7.47 3.45 5.09 7.66
7
Networth 10,5 9,36 8,66 8,44 8,23
27.6 5.46 1.44 3.04 5.61
6
Secured Loans 0.00 59.1 0.00 0.00 0.00
7
Unsecured
Balance Loans
Sheet of ACC 0.00-------------------
0.00 50.0in Rs.35.5 0.00
Cr. -------------------
2 0
Total Debt 0.00 59.1 50.0 35.5 0.00
7 2 0
Total Liabilities 10,5 9,42 8,71 8,47 8,23
27.6 4.63 1.46 8.54 5.61
6
Dec Dec Dec Dec Dec
'18 '17 '16 '15 '14
Dec 18 Dec 17 Dec 16 Dec 15 Dec 14
Per Share Ratios
Basic EPS (Rs.) 80.23 48.75 32.08 31.51 62.23
Diluted EPS (Rs.) 80.04 48.63 32.00 31.43 62.06
Cash EPS (Rs.) 112.04 82.75 64.24 66.17 91.83
Book Value [ExclRevalReserve]/Share 560.01 498.19 460.74 449.22 438.18
(Rs.)
Book Value [InclRevalReserve]/Share 560.01 498.19 460.74 449.22 438.18
(Rs.)
Dividend / Share(Rs.) 14.00 26.00 17.00 17.00 34.00
Revenue from Operations/Share (Rs.) 787.35 706.67 593.56 627.66 624.54
PBDIT/Share (Rs.) 116.13 108.56 81.37 88.14 94.47
PBIT/Share (Rs.) 84.23 74.51 49.18 53.44 64.80
PBT/Share (Rs.) 79.49 69.07 43.03 41.71 60.40
Net Profit/Share (Rs.) 80.14 48.70 32.04 31.47 62.16
Profitability Ratios
PBDIT Margin (%) 14.74 15.36 13.70 14.04 15.12
PBIT Margin (%) 10.69 10.54 8.28 8.51 10.37
PBT Margin (%) 10.09 9.77 7.24 6.64 9.67
Net Profit Margin (%) 10.17 6.89 5.39 5.01 9.95
Return on Networth / Equity (%) 14.31 9.77 6.95 7.00 14.18
Return on Capital Employed (%) 13.97 13.93 6.44 6.54 13.14
Return on Assets (%) 9.40 6.14 4.48 4.60 9.21
Total Debt/Equity (X) 0.00 0.01 0.01 0.00 0.00
Asset Turnover Ratio (%) 92.36 89.22 83.03 91.86 92.63
Liquidity Ratios
Current Ratio (X) 1.40 1.16 0.99 0.88 0.96
Quick Ratio (X) 1.04 0.87 0.69 0.57 0.63
Inventory Turnover Ratio (X) 8.82 9.46 9.12 9.92 9.35
Dividend Payout Ratio (NP) (%) 18.69 34.87 52.99 53.95 54.63
Dividend Payout Ratio (CP) (%) 13.37 20.52 26.43 25.66 36.98
Earnings Retention Ratio (%) 81.31 65.13 47.01 46.05 45.37
Cash Earnings Retention Ratio (%) 86.63 79.48 73.57 74.34 63.02
Valuation Ratios
Enterprise Value (Cr.) 25,288.41 30,410.53 24,747.03 25,496.64 25,997.42
EV/Net Operating Revenue (X) 1.71 2.29 2.22 2.16 2.21
EV/EBITDA (X) 11.58 14.90 16.18 15.39 14.64
MarketCap/Net Operating Revenue 1.91 2.49 2.24 2.17 2.24
(X)
Retention Ratios (%) 81.30 65.12 47.00 46.04 45.36
Findings
India is the second largest cement producer in the world
ACC Cement is largest producer and supplier in India
Lafarge Holcim is parent company of ACC Limited
Company’s research and development facility has a unique track
record of innovative research, product development and
specialized consultancy services
Market capitalization of ACC Limited is 27500 rupees cror
Company’s P/E Ratio is 15.08 and industry P/E Ratio is 36.63
Company declared dividend 140% of its face value
ACC Cement is foremost company in India established in 1st
august 1936
Has 50 ready mix concrete plant and 17 modern cement factories
A vast distribution network of over 9000 dealers and
countrywide spread of sales offices
Learning Experience
This project enable to me to collect and sort the
informantion required for writing the report.
To relate and practice the concept learnt in
preliminary stages of reseach methodology
This project help me to understand ,preparing
project report by using secondary data
It enables to me to present the information in a
logical, comprehensive and meaningful manner
I became aware about, collection of information of
particular company .
I came to know the difference between the industry
and company
