ACC Limited · NSE:ACC
ACC — Motilal Oswal Investor Conference 2012
19 slides from ACC's conference presentation, August 2012
Slide 1: ACC Limited
ACC Limited Kuldip Kaura, CEO & MD- ACC Limited, Motilal Oswal Investor Conference, August 2012
Slide 2: Indian Cement Industry Scenario
Indian Cement Industry Scenario India has the 2nd largest cement industry in Per capita cement consumption in 2011 (in kg) the world with demand at ~224 MT (world ~3570 MT) in 2011 & capacity ~290 MT (world China 1,390 ~4100 MT) Cement demand expected to grow at ~8-9 % World 480 per annum in foresee
Slide 3: Indian Cement Market Development
Indian Cement Market Development Demand - Next Five Years @ 10% CAGR Key Demand Drivers Figs in Mio.T Sectoral Infrastructure CAGR • Construction linked sector account for 8.3% of 12th plan spend ~ 850 bn. 341 • Infrastructure development – Roads, 59 17% Ports, Power, etc (17%) Commercial / Industri
Slide 4: Industry structure undergoing major changes
Industry structure undergoing major changes Investment Cycle Planning Period (5-7 years) Land Cost (~200%) Exchange Rate /Inflation Energy/Environment Regulations Enhanced Operating Cost Fuel Cost (Coal) (50-100%) Freight Cost (Oil) (~30%) MIC (Fly Ash, Slag) (~100%) •Significant increase in Investm
Slide 5: Indian Cement Scenario
Indian Cement Scenario Market Development Long term GDP growth of ~7 % leading to Demand - Supply multiplier effect for cement demand growth All values in Mio tons of ~8-9% Rising disposable income 406 390 366 Increased investment in infrastructure by 339 341 319 312 Govt . Expected investments of ~
Slide 6: ACC – Pioneer Of Indian Cement Industry with a Rich Heritage
ACC – Pioneer Of Indian Cement Industry with a Rich Heritage ACC was incorporated on August 1, 1936, in a historic merger of ten cement companies belonging to four business groups ACC became Holcim group company in 2005 ACC is first among equals 1947 - First indigenous plant at Chaibasa, Jharkhand 1
Slide 7: ACC – A Pan India Presence
ACC – A Pan India Presence Nationwide presence 16 cement plants - capacity of 30 million tonnes/annum GAGAL 21 sales units, 66 area offices TIKARIA LAKHERI DCW 55+ RMX plants SINDRI 10,000 dealers CHAIBASA KYMORE BARGARH CHANDA 2011: Cement & Clinker Sales* JAMUL Volume (MioT) 23.97 WADI Net Sales (
Slide 8: RMX Operations: ACC Concrete
RMX Operations: ACC Concrete ACC Ltd. set up its first commercial RMX plant in India in 1994 becoming a pioneer in RMX industry ACC Concrete was started as a subsidiary of ACC Ltd. in Jan 2008 Pan India RMX penetration is around 7%and in Indian metros 5 Punjab around 18% - Clearly a long way to grow
Slide 9: ACC Operational & Financial Performance
ACC Operational & Financial Performance Market share to 11% 2010 21.3 − Ramp up of Wadi, Chanda −Enhancement of distribution 2011 23.7 Market share network H1 2012 12.8 −Access to new markets Sales Volume (in MT) Improved EBITDA 2010 1,812 − Better internal efficiencies Financial −New premium produc
Slide 10: ACC: Perspective
ACC: Perspective ▪ Participate in India growth story ▪ Indian market to grow from 224 to ~ 500 Growth by 2020 Potential ▪ To maintain market share at ~11 % ▪ Potential to grow to ~55 MTPA by 2020 ▪ Mindset to touch benchmark and theoretical performance levels Performance ▪ Customer centricity and va
Slide 11: ACC towards Customer Centricity
ACC towards Customer Centricity Launched Premium Products (F2R, Coastal +,Concrete+) to address identified market gaps and needs Rolled out CRM across the country Customer Help Centers and Interactive website (www.acchelp.in )to provide construction solutions Improve time to serve - delivery within
Slide 12: Manufacturing Excellence
Manufacturing Excellence To improve efficiencies across KPIs Best performing plant Baseline Aspiration ACC Performance PPC clinker 1 67.0 65.8 62.0 60.0 factor (%) PSC clinker 2 46.3 44.4 41.3 40.0 factor (%) Thermal energy 3 3101 3079 2923 2885 (MJ/t Clinker) Electrical energy 4 89.6 87.7 79.9 79.8
Slide 13: Logistics Excellence : GIGO
Logistics Excellence : GIGO RFID implemented to achieve best-in-class GIGO time RFID reader Loading Key Drivers of Success bay – Vehicle side packer 1 plant fixed to 45 Yard Loading bay – numbers Complete visibility of packer 2 Yard detention vehicle information and time reduced to movement Loading
Slide 14: HR Excellence
HR Excellence: Strengthen the HR system to increase people centricity A B C D Talent Mgmt/ Recruitment, on Manage my capability building Productivity Processes boarding career improvement* Attract and on- Clear and faster Segment and Zero based board the right paths for develop talent for manning ap
Slide 15: ACC's growth potential
ACC ‘s growth potential Next 8-10 years, Opportunity to create another ACC 55 Installed Capacity (mio Tons per annum) 38 30 2011 2016 2020 Market size 224 312 470 Jamul Project with 2.79 MTPA Clinker capacity and 5.15 MTPA Cement capacity is under implementation. Expected commissioning by 2015
Slide 16: ACC's Journey towards sustainability
ACC’S Journey towards sustainability Greenhouse gas emissions: ACC reduced specific CO2 emissions from 812 kg /t(1990) to 545 kg/t (2012).Ongoing efforts to improve further ─ Clinker Factor to reduce from current 65% to ~ 60% ─ Electrical Energy to reduce from current 89.6 kwh/t cement to 80 kwh/t c
Slide 17: ACC – Community Development Impacting Over 1 Lakh People in 100+ Villages
ACC – Community Development Impacting Over 1 Lakh People in 100+ Villages Sustainable Community Development – in 100 villages around its operations through livelihood generation, rural infrastructure, literacy, women’s empowerment. Notable successes - 289 self help groups benefitting 2900 women Educ
Slide 18: ACC - Awards & Accolades
ACC - Awards & Accolades ACC was the very first recipient in 1976 of National Award for Rural and Agricultural Development Activities from ASSOCHAM. Good Corporate Citizen Award in 2006 from Bombay Chamber of Commerce & Industry Bombay Natural History Society Award in 1997 for supporting the cause N
Slide 19: Disclaimer
Disclaimer Cautionary statement regarding forward-looking statements: This presentation may contain certain forward-looking statements relating to the Group’s future business, development and economic performance. Such statements may be subject to a number of risks, uncertainties and other important