Directors Report & Management Discussion and Analysis
THE MEMBERS OF
The Directors take pleasure in presenting the Seventy Eighth Annual Report togetherwith the audited financial statements for the year ended December 31, 2013. The ManagementDiscussion and Analysis has also been incorporated into this report.
1. HIGHLIGHTS OF PERFORMANCE
Consolidated income for the year decreased by 2% to Rs. 11,389 crore as compared to Rs.11,621 crore in 2012. Consolidated profit before tax in 2013 was Rs. 1,214 crore asagainst Rs. 1,441 crore in 2012. Similarly, consolidated profit after tax was Rs. 1,095crore as against Rs. 1,059 crore in 2012.
2. FINANCIAL RESULTS
| || |
| ||Rs. Crore || || ||Rs. Crore |
| ||2013 ||2012 ||2013 ||2012 |
|Revenue from Operations (Net) and other income ||11,388.55 ||11,621.47 ||11,392.73 ||11,622.78 |
|Profit Before Tax (PBT) ||1,213.64 ||1,440.99 ||1,226.96 ||1,451.49 |
|Provision for Tax ||131.91 ||391.08 ||131.20 ||390.30 |
|Profit After Tax (PAT) ||1,094.67 ||1,059.28 ||1,095.76 ||1,061.19 |
|Balance brought forward from previous year ||3,845.79 ||3,591.12 ||3,861.83 ||3,821.54 |
|Adjustment pursuant to Amalgamation ||- ||- ||- ||(216.29) |
|Profit available for Appropriations ||4,940.46 ||4,650.40 ||4,957.59 ||4,666.44 |
|Appropriations: || || || || |
|Interim Equity Dividend ||206.52 ||206.52 ||206.52 ||206.52 |
|Proposed Final Equity Dividend ||356.72 ||356.72 ||356.72 ||356.72 |
|Tax on Equity Dividends ||95.72 ||91.37 ||95.72 ||91.37 |
|Previous Year Tax on Equity Dividends ||2.76 ||- ||2.76 ||- |
|General Reserve ||120.00 ||150.00 ||120.00 ||150.00 |
|Surplus carried to the next years account ||4,158.74 ||3,845.79 ||4,175.87 ||3,861.83 |
Your Directors are pleased to recommend a final dividend of Rs. 19/- per equity shareof Rs. 10 each. The Company had distributed an interim dividend of Rs. 11/- per equityshare of Rs. 10 each in August 2013. The total dividend for the year ended December 31,2013 would accordingly be Rs. 30/- per equity share of Rs. 10 each which was the same asthe dividend declared for the year ended December 31, 2012. The total outgo for thecurrent year amounts to Rs. 658.96 crore, including dividend distribution tax of Rs.95.72 crore as against Rs. 654.61 crore including dividend distribution tax of Rs. 91.37crore in the previous year and Rs. 2.76 crore being the dividend distribution taxpertaining to previous year.
4. ECONOMIC SCENARIO AND OUTLOOK
Indian economic growth in 2013 had slowed down to 4.5%-5% which is the lowest in adecade. The high borrowing cost to combat inflation coupled with lower privateconsumption, low investment in infrastructure and other sectors were responsible for this.Although agriculture and allied sectors had shown improvement following a good monsoon andexports grew due to the depreciation in the value of the Indian Rupee, the economic growthwas mainly pulled down by the contraction of the manufacturing sector. The low economicgrowth appears to have bottomed out and a gradual increase in economic activity isexpected from the middle of 2014.
5. CEMENT INDUSTRY OUTLOOK AND OPPORTUNITIES
The Indian Cement Industry has an installed capacity of Rs.350 million tonnes and thedomestic consumption in the calendar year 2013 was 260 million tonnes. Cement consumptionhad grown at the rate of 4% to 5% in the calendar year 2013. Although, cement consumptionis believed to have a multiplying factor of 1.2 to the GDP growth, such lower thanexpected consumption growth was mainly due to the high cost of borrowing and lowinvestment in the infrastructure and commercial segments.
Your Company had a marginally negative volume growth during the last calendar year asour large capacity in South and West could not be placed in the market due to overcapacityin these regions and also on account of negative consumption growth in our key markets ofMaharashtra and Karnataka. The sales volume was however, in line with other large cementmanufacturers in India.
The overall cement demand is estimated to grow at the rate of 4% to 5% in the calendaryear 2014. The consumption growth may pick up beyond 5% if investment is made in theinfrastructure segment. With the gradual reduction in fiscal deficits and Consumer PriceIndex, it is expected that the interest rates would gradually come down which wouldstimulate demand in the housing sector. Even with a modest increase in the consumptiongrowth, the cement industry will continue to have a huge capacity surplus in 2014,particularly in the South. Your Company's continued focus on cost reduction under the"Institutionalizing Excellence" programme, its thrust on increasing the sale ofits premium products and various other customer excellence initiatives should help inpresenting an improved performance.
6. CEMENT BUSINESSPERFORMANCE AT A GLANCE
| || || || |
| ||2013 ||2012 ||Change % |
| || || || |
|Production - million tonnes ||23.86 ||24.12 ||-1 |
|Sales Volume - million tonnes ||23.93 ||24.11 ||-1 |
|Sale Value - (Rs. crore) ||10,908.41 ||11,130.45 ||-2 |
|Operating EBITDA -(Rs. crore) ||1,628.79 ||2,195.57 ||-26 |
Your Company's constant focus on cost reduction through various efficiency improvementmeasures taken at the plants and in the areas of logistics under "InstitutionalizingExcellence" programme helped in partially covering the high cost of inflation.
Introduction of premium products such as F2R, Concrete+, ACC Gold in the retail segmentin many of our markets proved to be successful. It has been decided to replicate thissuccess on an all India basis.
7. INSTITUTIONALIZING EXCELLENCE
In 2012, your Company had launched the Institutionalizing Excellence programme acrossall functions to sustain overall performance excellence so as to deliver superior value tocustomers and pursue cost leadership. The programme helped the Company offset inflationarypressure by managing its operating costs and enhancing customer value through improvementsin manufacturing, sales, logistics and procurement processes. The InstitutionalizingExcellence journey continues with a strong focus on Occupational Health &Safety.
In Manufacturing Excellence, some plants have already achieved and have even surpassedtheir individual aspirational targets in respect of plant performance such as clinkerfactor, thermal and electrical energy efficiencies. Efforts are now directed towardsraising the overall efficiency parameters closer to the aspirational targets and pursuefurther reductions in input costs of coal, gypsum, slag and flyash.
The Customer Excellence programme continued to focus on measures to achieve volume andprice improvement and steps for the enhancement of brand equity.
The Logistics Excellence journey saw visible and significant initiatives to optimizecost-to-serve and time-to-serve, reduce lead distances, eliminate multiple handlingand enable the creation of modern infrastructure at our plants and warehouses. The RFIDand GPS modules which were successfully deployed at three plants are being replicated atall plants of the Company in a phased manner.
The on-going Jamul project in Chhattisgarh, which comprises a newstate-of-the-art clinkering line of 2.79 million tonnes per annum capacity and a grindingfacility of 1.10 million tonnes per annum capacity is progressing well and has reached itshalfway mark. The project will be completed in a phased manner by mid 2015. During theyear, work also commenced on the Sindri grinding unit in Jharkhand, which will receiveclinker from the new Jamul plant.
Your Company's first Waste Heat Recovery Boiler plant, with an output of Rs.7.5 MW, wascommissioned at the Gagal Cement Plant in Himachal Pradesh.
9. READY MIXED CONCRETE (RMX)
The Companys RMX business turned around during the year with its operating EBITDAimproving substantially to Rs. 19.61 crore from Rs. 2.1 crore in the previous year,though concrete sales volume increased marginally. The improvement in profitability wasmainly a result of close monitoring of operating and logistic costs and offering ourcustomers value added products and solutions. Customer focus has been sharpened bywidening the customer base and by leveraging the cement sales network to target the retailsegment.
The RMX market in the country has become more fragmented and competitive with many newentrants from the unorganized segment. Larger investments are foreseen in real estate andinfrastructure projects across India in the coming year leading to growth in theconstruction sector. The increased demand is expected to come from the markets of Mumbai,Chennai and Bengaluru. The Company is taking suitable steps to consolidate its RMXbusiness by striving to increase volumes from its existing assets, through on-site andcommercial projects.
| || || || |
| ||2013 ||2012 ||Change % |
| || || || |
|Production- Lakh Cubic Meters ||15.96 ||16.54 ||-4 |
|Sales Volume-Lakh Cubic Meters ||18.00 ||17.97 ||- |
|Sale Value -(Rs. crore) ||655.91 ||617.06 ||6 |
|Operating EBITDA-(Rs. crore) ||19.61 ||2.12 ||825 |
10. SUSTAINABLE DEVELOPMENT
Sustainability is an integral part of our business philosophy. The Company is in theprocess of consolidating inputs for a new roadmap for sustainable development for theperiod 2014-2017.
The cement operations of your Company are certified under various management systemsfor quality, environment and safety. In addition to Corporate Social Responsibility (CSR),Human Resources (HR) and Occupational Health & Safety (OH&S), which are addressedlater in this report, the important initiatives of your Company's sustainable developmentagenda emissions, reduction in include reduction in CO2 stack and fugitiveemissions, water management and biodiversity.
10.1 CO2 Emissions:
Your Company co-chaired the group involved in developing a Low Carbon Technologyroadmap for the Indian Cement Industry under the aegis of the Cement SustainabilityInitiative in India (CSI) of World Business Council for Sustainable Development (WBCSD).The roadmap comprises a comprehensive plan to achieve reduction in direct emissionsleading upto the year 2050. This is the first plan of its kind which is a country-specificand sector-specific long term action plan to cut emissions and mitigate CO2 climatechange risks. Keeping in mind these reduction targets, your Company is working on thefollowing levers simultaneously:
* Increasing the use of Alternative Fuels and Raw materials (AFR).
* Reducing Thermal Energy and Electrical Energy.
* Reducing clinker factor by producing blended cements using industrial waste materialslike flyash and slag.
* Increasing the use of renewable energy.
* Waste heat power generation from process waste heat.
Efforts in these areas helped your Company to maintain a leadership position inreduction of emissions in the country, as illustrated by the CO2 following:
* Specific emissions for Portland CO2 Pozzolona Cement (PPC) during the yearwas 529 kg CO2/tonne of cement as compared to 545 kg CO2/tonne of cement inthe previous year.
* Specific emissions for Portland Slag CO2 Cement (PSC) during the year was352kg CO2/tonne of cement as compared to 367 kg CO2/tonne of cement in theprevious year.
The above reduction helped the Company to maintain overall specific emissions, at CO2538 kg CO2/tonne of cement despite increase in the production of Ordinary Portland Cement.
10.1.1 Alternative Fuels and Raw Materials (AFR):
Your Companys initiatives in utilizing Alternative Fuels and Raw Materials (AFR)in the cement manufacturing process is gaining momentum in an effort to mitigate therising cost of conventional fossil fuels and raw materials. Forty six co-processing trialsof different waste materials have so far been carried out after obtaining necessaryclearances from the concerned authorities at the State and Centre levels. These trialshave demonstrated that co-processing is environmentally and ecologically a moresustainable technology for managing waste than other technologies that are in practicetoday, such as landfill and incineration. Our waste management services through cementkiln co-processing are gaining wider acceptance.
Based on the demonstrated success of the suitability of co-processing technology forwaste streams, the Company has received clearances for co-processing 127 different wastestreams generated by diverse industry segments such as automobiles, chemicals,engineering, power, steel, refineries and petrochemicals. During the year under review,the Company conducted seven co-processing trials of different waste materials. Twentythree new industries accepted the co-processing services offered by the Company as aresult of which thirty two new streams for co-processing have been added in variousplants. Currently, different types of waste streams are being co-processed fromindustrial, agricultural and municipal sources as AFR.
During the year 2013, a quantum leap was achieved in the usage of AFR, thereby enablinga Thermal Substitution Rate (TSR) of 4.36% against a target of 4.12%. The focus on AFR,enabled your Company to reduce fuel consumption in kilns, captive power plants and indryers.
Your Company is also engaged in co-processing segregated non-recyclable plasticwaste from municipal solid waste, thereby assisting Society with the disposal of plasticwaste. Your Company is in an active engagement with fifteen municipalities and localbodies in this regard and has co-processed 433.38 tonnes of non-recyclable plasticsduring the year.
To increase the AFR utilization substantially, three pre-processing platforms are beingset up at our plants which will prepare AFR material of uniform quality from various kindsof wastes that have different types of physical and chemical characteristics. Two of thesefacilities are expected to be ready during the course of this year.
10.1.2 Reduction of Thermal Energy:
Many initiatives were taken to reduce specific thermal energy in the manufacture ofclinker as part of the Manufacturing Excellence initiatives, which resulted in a reductionof 10 MJ specific thermal energy/tonne of clinker as compared to 2012. In many plants,higher percentage of petcoke is being used to reduce the cost of thermal energy and coalcosts.
10.1.3 Clinker Factor:
Clinker Factor in both varieties of blended Cements viz. Portland Pozzolana Cement(PPC) and Portland Slag Cement (PSC) was reduced through product innovation and researchefforts. Your Companys blended Cement initiatives is one of the biggest CleanDevelopment Mechanism (CDM) project of its kind in the Indian Cement Industry. Continuousefforts to control clinker content in PPC has helped emissions over a period of inreducing CO2 four years in four plants and this is currently under review for issuance of8,46,313 CERs (Certified Emission Reductions) by United Nations Framework Convention onClimate Change (UNFCCC).
10.1.4 Renewable Energy:
Your Company's Renewable Energy portfolio consists of 19 MW in the form of wind farmsacross three states viz. 9 MW in Tamil Nadu, 7.5 MW in Rajasthan and 2.5 MW inMaharashtra. Cumulatively, a total of 23.53 million units of wind power has beengenerated. These units helped the Company meet its non-solar renewable purchase obligationfor Madukkarai and Lakheri Plants. In Maharashtra, the Company was issued Renewable EnergyCertificates (RECs), besides meeting the power needs of our Thane complex and part of therequirement of our Subsidiary Company, Bulk Cement Corporation (India) Limited atKalamboli. The non-solar renewable power obligations of other plants viz. Wadi, Kymore,Bargarh, Tikaria and Jamul were met by purchasing RECs. The Tamil Nadu Wind Mill Projectrealized 21,745 CERs from UNFCCC.
10.1.5 Waste Heat Power generation from process waste heat:
The Waste Heat Recovery System at Gagal is expected to reduce 44,180 tonnes of CO2 perannum. This is an important milestone in the Companys sustainable developmentjourney.
10.2 Stack Emissions and Fugitive Emissions:
The Company has implemented various initiatives/measures for improving theenvironmental performance of its Plants. The current average Kiln Stack emissions are <30mg/Nm3,as against the regulatory compliance requirement of 30mg/Nm3. The specific kiln dustemissions per tonne of cement have decreased by Rs.18% as compared to the previous year.This was achieved through various measures like conversion of Electrostatic Precipitators(ESPs) to Baghouse and installation of Polytetrafluoroethylene (PTFE) membrane filter bagsin place of conventional filter bags. Many initiatives were undertaken to minimizefugitive as well as stack emissions across all Plants. These include installation of dustsuppression systems, dust extraction systems for material handling, loading, unloadingareas of raw materials, intermediate and finished products. In some plants, coveredstorage has been provided to prevent fugitive emissions. Online continuous ambient airquality monitoring stations were installed in some plants to monitor environmentparameters.
10.3 Water-positive initiatives:
Your Company has adopted a two pronged strategy i.e. working simultaneously on reducingfresh water intensity by reducing water demand in process/non-process needs and wastewater recycling after treatment, whilst simultaneously working on rain water harvesting inplants, mines, housing colonies and community areas. During the year 2013, theCompanys specific water consumption per tonne of cement was reduced by 2%. As partof its water-positive initiatives, the Company has taken up many water harvesting schemesduring the year. Installation of water metering systems and increasing the usage ofrecycled water will help the Company to become water-positive in the near future.
As part of your Company's overall objective to create a positive impact onbiodiversity, a risk assessment excercise of all mines has been carried out and variousinitiatives are being undertaken in this regard. The green belt area in all cement plantsis being increased to maintain atleast 33% as green coverage. During the year 2013,approximately 1 lakh trees were planted under afforestation programmes across all plants.
11. COMMUNITY DEVELOPMENT
The Board of Directors constituted a Corporate Social Responsibility (CSR) Committeewhich reviewed and restated the Companys CSR policy in order to make it morecomprehensive and aligned with the activities specified in Schedule VII of the CompaniesAct, 2013. The new policy statement emphasizes the purpose of delivering superior andsustainable value to our stakeholders and simultaneously indicates key performance areasand specific deliverables mainly in respect of education, health & sanitation andsustainable livelihoods.
During the year 2013, the Companys community development efforts successfullytouched the lives of almost 6 lakh people spanning ~130 villages across the country.Overall CSR expenditure incurred during the year was Rs. 22.76 crore. Efforts to enhancethe quality of education in the plants neighbourhood schools benefitted approximately18,000 students during the year. Scholarships were awarded to 650 meritorious studentsfrom weaker sections of society to help them continue their education. Technology aidededucation initiatives like smart classes and interactive kiosks in rural schools reachedout to about 12,700 rural children to keep pace with modern methods of learning. Specificsupport was provided to revive education to about 850 girl children who had dropped out ofschool. The Company continued to support
7 Government run ITIs under the Public Private Partnership Schemes with Ministry ofLabour and Employment, Government of India. Skill development training programmes wereimparted to unemployed youth in partnership with specialized NGOs, which helped about2,500 youth get job placements in various manufacturing and service sector enterprises.Your Company supported the formation of 737 Self Help Groups (SHGs) and theirstrengthening through structured training activities. Members of these SHGs saved close toRs. 1.50 crore which helped them to secure matching grants from banks and other financialinstitutions to start micro-enterprises.
In matters of health and nutrition, your Companys initiatives benefitted morethan 1 lakh people. Support to 102 "anganwadi centres" helped approximately3,000 children get access to better health and nutrition. Nearly 1,500 HIV/AIDSaffected persons were supported through counselling, testing and treatment.
Your Company supported the process of Aadhaar enablement of the local communities toenhance their access to government subsidies and entitlements. A substantial part of thepeople living around our plants now have Aadhaar identification cards.
Your Company has also been engaged in leadership roles in CSR at various platforms. ACChas been nominated as an Industry representative in the Global Fund for IndiasCountry Co-ordination Mechanism on Health. The Company has also been appointed inthe CIIs Sanitation Committee to promote initiative of Government of India on bettersanitation coverage in India.
Your Company was quick to respond in providing timely relief to the people affected intwo major disasters that struck the nation in 2013. The Chief Minister of Uttarakhandacknowledged the prompt efforts and unstinted help rendered by the Companysemployees to the victims of the landslide and flash floods in June 2013.
12. OCCUPATIONAL HEALTH & SAFETY (OH&S)
In pursuit of ensuring "No harm anywhere to anyone associated with ACC",Occupational Health & Safety (OH&S) remains the Companys top priority.Accordingly, the endeavour in 2013 was to instill OH&S as our license to lead. Throughwidely communicated initiatives such as "Suraksha Laher", efforts were directedto create an appropriate infrastructure, improve OH&S systems to make them more robustby identifying and addressing deficiencies and by building OH&S capabilities of lineand functional personnel. There was a new thrust on visible leadership in creating astructure within plants that ensures accountability and incorporates a concept of Zoneownership. A Centre of Excellence has been created to implement safety processes andsystems uniformly at all plants, for capability building and for sharing experiences andbest practices. The centre has three fulltime executives to implement OH&S priorityareas. It is also intended to involve and engage Shop Floor Associates (SFAs) and contractworkers to identify their safety concerns and execute safety projects with a view toachieve focused improvements in their respective work areas. The behaviour based safetyinitiative "ACC Chetna", launched in 2012, continued to form part of the basicbehaviour expected as a practice from employees to prevent incidents.
Reaching beyond plant operations, your Company also addressed the subject of LogisticsSafety to prevent vehicle related incidents. This programme included carefully plannedinterventions in people development and training in safe driving for drivers. Plant-levelhealth and safety checks have been initiated in phases with the help of externalconsultants. The safety checks include examination of factors influencing vehicular safetysuch as overall plant layout, packing house layout, truck parking yards, inward andoutward flow of traffic, storage areas and infrastructure for road and rail transport.
Various steps were taken to demonstrate that health constitutes an essential part ofOccupational Health & Safety. The focus on occupational health in the areas of healthsurveillance, upgradation of emergency medical response and pro-wellness programmes helpedsave valuable lives while reducing health risk factors.
13. HUMAN RESOURCES
Success of any organization depends upon the engagement and motivation levels of itsemployees. In Human Resources, our emphasis was to give autonomy to people at differentlevels and create a sense of ownership in order to unleash their potential.
The Human Resources Division has played a significant role in achieving the overallbusiness objectives by creating a common vision, building capability amongst people andmore importantly, involve and engage employees in improvement programmes across thefunctions for achieving higher results. This process of engagement and involvement throughspecial projects has created learning opportunities for the employees.
* To support business, processes were re-engineered to bring about variouschanges in systems in order to provide proactive support. Some of the initiatives are asunder:
* Recruitment and On-BoardingRight-fit talent is hired and exposed to a year-longinduction programme in newly created On Boarding Centers.
* Employee Engagement ProgrammesEmployee feedback through various surveysconducted show that the employees are experiencing a greater sense of engagement.
This has been achieved through various on-the-job engagement initiatives. OrganizationExcellenceThe Company has carried out a variety of initiatives in this regard, afterbenchmarking Indian and Global best-in-class organization designs.
* Skill EnhancementA plan has been put in place for upgrading the skills of SFAsthrough training and engaging them in a variety of improvement programmes to enable themto align with business and perform better. The unions and other stakeholders are highlyappreciative of this initiative.
* Capability BuildingYour Company believes that capability can be built byhands-on experience and exposure. Series of programmes are being conducted whereunder alarge number of middle and senior level leaders are assigned various turnaround projects.A continuous monitoring as well as a recognition and reward model has also been createdaround this initiative to encourage and recognize people in larger forums.
* Creating a future leadership pipelineWith a view to motivating and retainingtalent and providing growth opportunities for them in their respective work areas,identified talent has been given new challenges through engagement, mobility and specialprojects.
Proactive Industrial RelationsA great deal of time is spent in engaging Unionsand sharing relevant information with them to enable them to participate in the growthjourney.
Your Companys cash and cash equivalent as at December 31, 2013 was Rs. 2,621crore. The Company continues to focus on judicious management of its working capital.Receivables, inventories and other working capital parameters are kept under strict checkthrough continuous monitoring. The Companys debt programme continues to enjoy an"AAA" rating from CRISIL.
During the year under review, the Company had given an option of premature redemptionof Non-Convertible Debentures to the holders of its Privately Placed Debentures.
Non-Convertible Debentures of the aggregate value of Rs. 105 crore, stand prematurelyredeemed whilst debentures of the aggregate value of Rs. 20 crore, stand redeemed onmaturity as on December 31, 2013.
As on date, Non-Convertible Debentures aggregating Rs. 32 crore remain outstanding.
15. FIXED DEPOSITS
Despite efforts to identify and repay unclaimed deposits, the total amount of fixeddeposits matured and remaining unclaimed as on December 31, 2013 was Rs. 0.02 crore.
16. SUBSIDIARY COMPANIES
16.1 ACC Mineral Resources Limited (AMRL)
The wholly owned Company ACC Mineral Resources Limited is a Joint Venture Partner infour Coal Blocks allotted by the Madhya Pradesh State Mining Corporation Limited (MPSMC).
Preliminary and pre-development activities in the three Coal Blocks out of four are inprogress. The Bicharpur Coal Block in the Shahdol District is in an advanced stage ofdevelopment and will cater to the coal requirement of some of your Companys cementplants when it becomes operational. Various clearances for Marki Barka Coal Block inSingrauli are in an advanced stage and a detailed project report for the Block is underpreparation. The exploration activity in Morga IV Coal Block is expected to take placeafter the clearance from the Ministry of Environment & Forests.
In January 2013, the Semaria Piparia Coal Block was de-allocated by the Ministry ofCoal on the grounds of non-receipt of forest and environmental clearances from theMinistry of Environment and Forests, in view of the blocks proximity to the NationalTiger Reserve at Bandhavgarh. On a Writ Petition filed by MPSMC and the Semaria JointVenture Company, partial relief in the matter has been granted by the High Court atJabalpur.
16.2 Bulk Cement Corporation (India) Limited (BCCI)
During the year under review, BCCI handled cement volumes of 9.60 lakh tonnes asagainst 9.20 lakh tonnes in 2012. The profit after tax for the year 2013 is Rs. 270.94lakhs as against Rs. 179.81 lakhs in the year 2012.
16.3 Audited Financial Statements of Subsidiary Companies
As required under Section 212 of the Companies Act, 1956, the audited financialstatements along with the report of the Board of Directors relating to the Companyssubsidiaries viz. ACC Mineral Resources Limited, Bulk Cement Corporation (India) Limited,Lucky Minmat Limited, National Limestone Company Private Limited and Singhania MineralsPrivate Limited together with the respective Auditors Reports thereon for the yearended December 31, 2013 are annexed.
The Board has appointed Mr Farrokh K Kavarana as an Additional Director of the Companywith effect from May 3, 2013. In accordance with Section 161 of the Companies Act, 2013(corresponding to Section 260 of the Companies Act, 1956), Mr Kavarana holds office uptothe date of the forthcoming Annual General Meeting of the Company and his candidature forappointment as a Director has been included in the Notice convening the forthcoming AnnualGeneral Meeting of the Company.
The Board has appointed Mr Bernard Terver as an Additional Director of the Company witheffect from December 4, 2013. In accordance with Section 161 of the Companies Act, 2013(corresponding to Section 260 of the Companies Act, 1956), Mr. Terver holds office uptothe date of the forthcoming Annual General Meeting of the Company and his candidature forappointment as a Director has been included in the Notice convening the forthcoming AnnualGeneral Meeting of the Company.
At the request of Life Insurance Corporation of India, the Board has appointed Mr V KSharma, Managing Director, Life Insurance Corporation of India, as an Additional Directorof the Company with effect from February 6, 2014. In accordance with Section 161 ofCompanies Act, 2013 (corresponding to Section 260 of the Companies Act, 1956), Mr Sharmaholds office upto the date of the forthcoming Annual General Meeting of the Company andhis candidature for appointment as a Director has been included in the Notice conveningthe forthcoming Annual General Meeting of the Company.
The Board has re-appointed Mr Kuldip Kaura as Chief Executive Officer & ManagingDirector for a period of one year with effect from January 1, 2014. The Members ofthe Company had approved of the aforesaid re-appointment and the terms of remuneration ofMr Kaura by way of a postal ballot, pursuant to which the Company has entered into anagreement with Mr Kaura detailing therein his terms of reappointment and remuneration.Inaccordance with the provisions of the Companies Act, 1956, and in terms of theMemorandum and Articles of Association of the Company, the following Directors, viz. MrAidan Lynam, Mr Sushil Kumar Roongta and Mr M L Narula retire by rotation and areeligible for re-appointment.
18. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an Internal Control System, commensurate with the size, scale andcomplexity of its operations. The scope and authority of the Internal Audit (IA) functionis defined in the Internal Audit Charter. To maintain its objectivity and independence,the IA function reports to the Chairman of the Audit Committee of the Board. The InternalAudit Department monitors and evaluates the efficacy and adequacy of the internal controlsystem in the Company, its compliance with operating systems, accounting procedures andpolicies at all the Companys locations, and its Subsidiaries. Based on the report ofinternal audit function, process owners undertake corrective action in their respectiveareas and thereby strengthen the controls. Significant audit observations and correctiveactions thereon are presented to the Audit Committee of the Board.
19. BUSINESS RISK MANAGEMENT
Your Company has a robust process to identify and assess business risks andopportunities. The Business Risk Management (BRM) activity is monitored both at theCorporate and at regional levels. Risks and opportunities so identified are integratedinto the business plan and a detailed action plan to mitigate identified risks is drawn upand its implementation monitored. Key business risks identified by the Company fall intoareas of fuels, projects, competition and OH&S. These risks together with plans fortheir mitigation are as under:
Cement production is an energy-intensive process that requires large quantities of coalto meet its kiln and captive power generation requirements; hence, consistent supply ofthis fuel at reasonable and stable prices is a major concern for the Company. Erraticsupplies of coal due to domestic production constraints and price fluctuations wouldadversely impact the input costs for an industry as dependent on coal as the CementIndustry. The Company is gradually increasing the use of alternative fuels and isoptimizing its coal mix. To hedge this risk, your Company has through its SubsidiaryCompany ACC Mineral Resources Limited, entered into Joint Venture with Madhya PradeshState Mining Corporation Limited for developing four coal block as earlier indicated. TheBicharpur Coal Block when developed would partly meet the coal requirement of some of theCompany's Cement Plants.
The Cement Industry is capital intensive in nature. Its Compound Annual Growth Rate
(CAGR) for the next five years is expected to be ~7 %. In the execution of largeprojects which are highly capital intensive in nature, there could be exposure to time andcost overruns. To mitigate these risks, the Company has strengthened its projectmanagement team as well as its project accounting and governance framework. Whilst theCompany continues to draw on Holcims expertise, a separate organizational structureat Project sites with defined roles and accountability has been put in place for largeprojects.
The Cement Industry is becoming intensely competitive with the foray of new entrantsand some of the existing players adopting inorganic growth strategies. To mitigate thisrisk, the Company is leveraging its capacities to increase market share, enhance brandequity and visibility, enlarge product portfolio and service offerings. It would alsoleverage on its Infrastructure, Commercial and Institutional Sales teams to offer value tolarge customers.
The Cement Industry is labour intensive and hence the safety of employees and workersis of utmost importance to the Company. To reinforce the safety culture in the Company, ithas identified Occupational Health & Safety as a focus area of overriding importance.The Company already has a robust approach to tackle this risk through various programmesin all its Plants and Sales Units as detailed in para 12 of this Report.
During the year under review, your Company received many awards and felicitationsconferred by reputable organizations for achievements in different areas such as Safety,Manufacturing Excellence and Environment Management. Your Company was recognized as one ofIndias most sustainable companies and was presented the CII-ITC Sustainability Prizeunder the category of large manufacturing companies which is a notable recognition.
21. ENHANCING SHAREHOLDERS' VALUE
The processes of the Secretarial & Compliance Division, Share Department and ISDSupport, comply with ISO 9001:2008 as certified by Det Norske Veritas AS for therobustness of quality management processes.
Your Company believes that its Members are among its most important stakeholders.Accordingly, your Companys operations are committed in the pursuit of achieving highlevels of operating performance and cost competitiveness, consolidating and building forgrowth, enhancing the productive asset and resource base and nurturing overall corporatereputation. Your Company is also committed to creating value for its other stakeholders byensuring that its corporate actions positively impact the socio-economic and environmentaldimensions and contribute to sustainable growth and development.
22. DIRECTORS RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the information andexplanations obtained by them, your Directors make the following statement in terms ofSection 217(2AA) of the Companies Act, 1956: that in the preparation of the annualaccounts for the year ended December 31, 2013, the applicable accounting standards havebeen followed along with proper explanation relating to material departures, if any; thatsuch accounting policies as mentioned in Note 2 of the Notes to the Financial Statementshave been selected and have been applied consistently and judgement and estimates havebeen made that are reasonable and prudent so as to give a true and fair view of the stateof affairs of the Company as on December 31, 2013, and of the profit of the Company forthe year ended on that date; that proper and sufficient care has been taken for themaintenance of adequate accounting records in accordance with the provisions of theCompanies Act, 1956, for safeguarding the assets of the Company and for preventing anddetecting fraud and other irregularities; that the annual accounts have been prepared on agoing concern basis.
The Companys Auditors Messrs S.R Batliboi & Co LLP, Chartered Accountants,who are the Statutory Auditors of the Company and who hold office upto the date of theAnnual General Meeting, have, arising out of their internal restructuring, expressed theirinability to continue as Auditors of the Company.
Messrs S R Batliboi & Co LLP, were appointed as Auditors of the Company in 2012.The Board has placed on record its appreciation of the services rendered by the Auditors.
The Members are requested to appoint S R B C & CO LLP (ICAI FirmRegistration No. 324982E) one of the four firms in the overall S R Batliboi &Co network, as the Auditors of the Company for the year 2014 and to authorize the Board ofDirectors to fix their remuneration as per Item 6 of the Notice. S R B C & CO LLP haveconfirmed their eligibility under Section 224 of the Companies Act, 1956, for appointmentas Auditors of the Company.
As per the requirement of the Central Government and in pursuance of Section 233B ofthe Companies Act, 1956, your Company carries out an audit of cost records relating tocement each year. Subject to the approval of the Central Government, your Directors haveappointed Messrs N I Mehta & Co to audit the cost accounts of the Company for thefinancial year 2013.
24. CORPORATE GOVERNANCE
As per Clause 49 of the Listing Agreement with the Stock Exchanges, a separate sectionon corporate governance practices followed by the Company, together with a certificatefrom the Companys Auditors confirming compliance, is set out in the Annexure formingpart of this Report.
25. BUSINESS RESPONSIBILITY REPORTING
As per Clause 55 of the Listing Agreement with the Stock Exchanges, a separate sectionon Business Responsibility forms part of this Annual Report.
26. CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements of the Company prepared in accordance withrelevant Accounting Standards viz. AS 21, AS 23 and AS 27 issued by the Institute ofChartered Accountants of India form part of this Annual Report.
27. ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE
The information on conservation of energy, technology absorption and foreign exchangeearnings and outgo stipulated under Section 217(1)(e) of the Companies Act, 1956,are furnished in Annexure A to the Directors Report.
28. PARTICULARS OF EMPLOYEES
The information required under Section 217 (2A) of the Companies Act, 1956, read withCompanies (Particulars of Employees) Rules, 1975 as amended, in respect of the employeesof the Company, is provided in the Annexure forming part of this Report. In terms ofSection 219(1)(b)(iv) of the Act, the Report and Accounts are being sent to the Membersand others entitled thereto, excluding the aforesaid Annexure which is available forinspection by the Members at the Registered Office of the Company during business hours onworking days of the Company upto the date of the ensuing Annual General Meeting. If anyMember is interested in obtaining a copy thereof, such Member may write to the CompanySecretary in this regard.
Your Directors thank the various Central and State Government Departments,Organizations and Agencies for the continued help and co-operation extended by them. TheDirectors also gratefully acknowledge all stakeholders of the Company viz. customers,shareholders, dealers, vendors, banks and other business partners for the excellentsupport received from them during the year. The Directors place on record their sincereappreciation to all employees of ACC for their unstinted commitment and continuedcontribution to the Company.
30. CAUTIONARY STATEMENT
Statements in the Directors Report and the Management Discussion & Analysis,describing the Companys objectives, expectations or forecasts, may beforward-looking within the meaning of applicable securities, laws and regulations. Actualresults may differ materially from those expressed in the statement. Important factorsthat could influence the Companys operations include global and domestic demand andsupply conditions affecting selling prices of finished goods, input availability andprices, changes in government regulations, tax laws, economic developments within thecountry and other factors such as litigation and industrial relations.
For and on behalf of the Board of Directors
N S Sekhsaria
Date: February 6, 2014
Annexure A to Directors Report
Section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure ofParticulars in the Report of Board of Directors) Rules, 1988.
Sustainability is at the core of ACCs business philosophy and has become a partof its DNA. In this direction, as a part of manufacturing excellence, ACC implements manyinitiatives in the areas of Energy and Environment. Few initiatives in these areas are asgiven below:
A: CONSERVATION OF ENERGY
(a) Energy conservation and efficiency measures were undertaken in various areas of thecement plants:
* Thondebhavi Plant commissioned Medium Voltage (6.6 KV) Variable Speed Drives for BagHouse Fan & Low Voltage Variable Speed Drives for Compressors and Bag Filter Fans.
* Madukkarai Plant commissioned Medium Voltage (6.6 KV) Variable Speed Drive for KilnExhaust fan; commissioned Low Voltage Variable Speed Drives for forced draft fans ofcooler, and vacuum pumps; replaced impeller of cooler fan 3 & 4 with energy efficientimpellers, replaced compressor with PD blower for Side Line Calciner firing.
* Jamul Plant commissioned Low Voltage Variable Speed Drives for Raw Mill 2 DustCollector Fan, Coal Mill 1 & 2 Circulating Fan, Coal Mill 2 Dust Collector Fan, CementMill 7 & 8 Dust Collector Fan.
* Lakheri Plant commissioned Medium Voltage (6.6 KV) Variable Speed Drives for theCalciner Fan and E-Mill Fan; commissioned Low Voltage Variable Speed Drives for CoolerFans, Cement Mill Compressors, Process Dust Collector Fans in plant and Primary Air Fans,Auxiliary Cooling Water Pump in Captive Power Plant; Reduced cooler exhaust gas flow from1.2 to 1.0 Nm3/kg Clinker by attending cooler plate to plate gaps, inter & undercompartment sealing & Use of Pneumatic Double flap gates for arresting false air fromcooler. This helped to reduce cooler exhaust gas temprature from 240 deg C to 220 deg C,which resulted in better heat recuperation in cooler;
* Bargarh plant commissioned Low Voltage Variable Speed Drives for clinker coolerForced Draft fans and 2 Nos Primary & Secondary Air Fans for CPP.
* Chanda Plant commissioned Medium Voltage (3.3 KV) drives for Cement Mill 1 & 2Separator Fans; commissioned Low Voltage Variable Speed Drives for Compressors &Installation of VFD for Belt Conveyors:
* Kymore Plant replaced Kiln 1 bag house fan Impeller with energy efficient impellerand modified ducting from bag house outlet to fan inlet to reduce fan consumption. Mediumvoltage (6.6 KV) variable speed drive has been installed which will be commissioned duringnext stoppage; 3.3 KV motors were converted to 415 V along with Low Voltage Variable SpeedDrives for Separator Fans of Cement Mills 1 & 8. Low Voltage Variable SpeedDrives were also commissioned for vent fans of Cement Mills 1, 8 & 9; Kiln 1 ClinkerCooler was modified from Controlled Flow Grate (CFG) to Reduced Fall Through (RFT) toimprove Cooler Heat Recuperation.
* Gagal Plant retrofitted existing GRR controls by installing Medium Voltage (6.6KV)Variable Speed Drives for Pre-heater Fan, VRM Fan, Bag House Fan and Separator Fans forGagal 2; Replaced VRM Fan, Kiln String Fan, Cooler Forced Cooling Fan, Separator Fans forCement Mills 1,2 & 3 with energy efficient fans; Commissioned Low Voltage variablespeed drives for separator fans of Cement Mill 3,4 & 5. bag house fan for Cement Mill3 & 4; dust collector cleaning operation converted from timer based to DifferentialPressure based cleaning to avoid excessive cleaning and optimising compressed airconsumption. It also commissioned the 8.0 MW Waste Heat Recovery Power Generator duringthe year. It is expected to generate 7.2 MW (Net) at full load.
Wadi Plant improved Raw Mill #2 Production Rate Index (PRI) from 515 to 540 byInstallation of FOL (force oil lubrication system) system for Main Motor bearing cooling,increasing the roller lifting height from 200 mm to 250mm, stage wise reduction of damring from 85 mm to 65 mm WG and partial blocking of nozzle ring for desired velocityprofile; high Vibration Level in separator of Raw mill was corrected by Increasing theclearance between feed chute & Separator rotor from 5 mm to 75 - 80mm; Low VoltageVariable Speed Drive was installed for Lime Stone Stacker bogie drives and modified logicof stacker for running in auto mode fully whereby plant is able to maintain the homogenouslimestone pile; Variable Speed Drives were installed for Raw Mill Vent Fan 1,2,&3,Cement Mill Vent Fans and 4 Nos Primary Air Fans.
Tikaria Plant commissioned VFD for Coal Handling Bag Filter Fan; Modified watercirculation line of Pregrinder (PG) circuit to stop the complete cooling tower along withcirculation pump of PG circuit.
Chaibasa Plant commissioned Medium Voltage (6.6KV) variable speed drive for BagHouse fan, it commissioned variable speed drive for reverse air fan and revived PID Loopcontrol of RA fan speed with respect to Bag house Differential Pressure; commissionedMedium Voltage (6.6KV) variable speed drive for Coal Mill Fan; Reduced Raw Mill Fan Powerby changing of fan impeller and also individual cyclone study and modification; Improvedthe reliability of cement mill separator and Elevator by seperator Cone replacement, Gearbox base plate replacement & Elevator modification to increase mill output.
Sindri Plant converted the 3.3 KV motors to 690 V and commissioned Low VoltageVariable Speed Drives for VRM ID Fan
Kudithini Plant commissioned Low Voltage Variable Speed Drives for Packing plantBag Filter Fans, Compressor and Water pump. Replaced Reciprocating compressor (150 kW)with PD blower (55 kW) along with VVFD for fine coal conveying to Hot Air Generator;stopped operation of two compressors of 90 KW by integrating compressed air line with maincompressor (132 KW)
Vizag Plant installed 24W Solar Lights to replace 250W MV street lights;installed 45 KVA Lighting Transformer for optimisation of lighting voltage.
A detailed Energy Audit was conducted at Tikaria, Madukkarai, Thondebhavi,Bargarh and Chanda plants, and detailed compressed air audit was conducted at Kudithiniplant.
Energy Monitoring System was commissioned at Sindri & Tikaria
Capacitor banks have been added to the system across ACC plants to improve plantpower factor and also to reduce harmonics.
Replacement of conventional lamps with Compact Fluorescent Lamps & LED lightfor plant and colony lighting was done across ACC plants.
ISO 50001 certification audit was conducted for Thondebhavi, Kudithini and WadiPlants.
Thondebhavi Plant was awarded Certificate of Merit by BEE as part of NationalEnergy Conservation Award's 2013; Jamul, Lakheri Kymore and Thondebhavi Plants wereawarded by Confederation of Indian Industries; Jamul and Gagal Plants were felicitated byNational Council for Cement & Building Materials.
Green power -
ACC Renewable Energy Portfolio consists of 19 MW in the form of Wind Farmsacross 3 states viz. 9 MW in the state of Tamil Nadu, 7.5 MW in the state of Rajasthan and2.5 MW in the state of Maharashtra. Cumulatively, we have generated 32.53 Million Units ofgreen power. (Rajasthan - 11.02 Million Units, Tamil Nadu - 18.12 Million Units,Maharashtra - 3.39 Million Units).
These units helped ACC to meet the Renewable Purchase Obligation (Non-Solar) forMadukkarai Plant (TN) & Lakheri Plant (Rajasthan) fully. In Maharashtra, we wereissued Renewable Energy Certificates (RECs) besides meeting the Thane complex power needsand also part requirement of BCCI Kalamboli.
The Renewable Power Obligation (Non-Solar) of other plants (Wadi in Karnataka,Kymore in Madhya Pradesh, Bargarh in Orissa, Tikaria in Uttar Pradesh, Jamul inChhatisgarh were met by purchasing Renewable Energy Certificates.
We are in advanced talks to consume Green Power in Karnataka state (Kudithiniand Thondebhavi plants), to meet our Non-Solar RPO for Wadi plants. Likewise, we arepursuing Power Purchase Agreement (Green Power) for other states, besides exploringoptions of setting up Wind Farms.
(b) Additional Proposals being implemented to further the drive for energy conservation
Installation of Medium Voltage and Low Voltage Variable Speed Drives.
Replacement of existing fans with high efficiency fans
Replacement of pumps with high efficiency pumps
Replacement of multiple compressors with single compressors
Replacement of Motors with high efficiency motors
Improve Air Conditioning and Lighting loads
Install additional capacitors to improve power factor
This will ensure further saving in electrical energy during 2014, as well as achievebetter process controls.
(c) Impact of the above measures for reduction of energy consumption and consequentimpact on cost of production -
The measures stated in points (a) and (b) above would further improve the thermal andelectrical energy efficiency of the Plants. During the year 2013, the electrical energyreduced by 3.55% and thermal energy reduced by 0.33%.
ACC's overall Specific CO2 emissions excluding emissions from CPP are538 Kg CO2 /T of Cement.
ACC's Specific CO2 emissions for Portland Pozzolona Cement: 529 Kg CO2/T of Cement.
ACC's Specific CO2 emissions for Portland Slag Cement: 368 Kg CO2/T of Cement.
This performance is better than the country's average CO2 performance of2010-719 Kg CO2/T of Cement as indicated in Low Carbon Technology Roadmap 2050developed by CSI-WBCSD.
Clean Development Mechanism (CDM):
Blended Cement Project: Realized 72714 CERS in 2013. Also submitted verificationreports to UNFCCC recommending for issuance of 846313 carbon credits 9 MW Wind project inTamil Nadu: Realized 21745 CERs in 2013.
Kiln Stack Emissions & Fugitive Emissions:
ACC has implemented various initiatives/measures for improving the environmentalperformance of the plants. Our specific kiln dust emissions per tonne of cement has beendecreased by ~18% when compared with last year. This reduction has been achieved throughvarious measures like conversion of ESP's to Baghouse, changing the maintenance practices,by installing PTFE membrane glass fibre filter bags in place of ordinary filter bags etc.Across ACC, many initiatives have been undertaken to minimize fugitive as well as stackemissions. ACC is having one of the best stack emission performance in the country.
Water Intensity & Metering System:
A lot of initiatives have been undertaken in water management like installation ofwater meters, minimizing the leakages, modification of the process etc which has resultedin saving of freshwater consumption. Huge amount of rainwater has also been harvested in& around plant premises.
During the year 2013, ACC's specific water consumption/T of Cement is reduced by 2% inCement manufacturing. ACC is implementing many initiatives to achieve the country's bestspecific water consumption of 80 ltrs/cement.
Water Positivity: We are implementing all possible measures like water harvesting inmines, colony, plant, implementing water metering system and water conservation measuresto become water neutral at first and then aiming to become water positive.
Discharge of Effluents: We adhere to Zero discharge of our process waste water.
A Green belt has been developed in & around the plant premises. During the year2013, we have planted about one lakh trees under our afforestation programme.
During the year 2013, we have installed Continuous Ambient Air Quality MonitoringStations at 3 plants and started uploading the ambient air quality data of 3 plants onCPCB website continuously.
Sustainability Roadmap: The existing road map is for the period 2009-2013 and we are inthe process of consolidating the inputs for roadmap for the period 2014-2017.
During 2013, the following awards have been received by ACC as a Corporate, towards itssustainability performance:
1. CII - ITC Sustainability Prize
2. "Eco - Corporate" Yes Bank - Saevus Natural Capital Award
3. Parivartan Sustainability Disclosure Leadership Award
Individual plants have been recognised by various environmental awards in variouscategories.
Power and Fuel Consumption - Cement
| || |
| ||Lakh Units ||Total Cost ||Rs. per Unit ||Lakh units ||Total Cost ||Rs. per Unit |
| ||(Kwh) ||Lakhs) || ||(Kwh) ||Lakhs) || |
|Electricity (Gross) || || || || || || |
|a) Purchased : ||5407 ||31,678 ||5.86 ||6152 ||32,949 ||5.36 |
|b) Own Generation : || || || || || || |
|i) Through Diesel ||6 ||224 ||36.49 ||43 ||570 ||13.28 |
|Generator || || || || || || |
|ii) Through Steam ||17639 ||77,555 ||4.40 ||17876 ||76,829 ||4.30 ** |
|Turbine/Generator || || || || || || |
| ||Quantity Rs.(Lakh Tonnes) ||Total Cost Lakhs) ||Average Rate (Rs./Tonne) ||Quantity Rs. (Lakh Tonnes) ||Total Cost Lakhs) ||Average Rate (Rs./Tonne) |
|Coal (for kiln)* ||22.75 ||13,2465 ||5822 ||23.29 ||1,32,094 ||5672 |
* Does not include other fuel/alternative fuels used in kiln. ** Excluding impact dueto change in Depreciation method.
Waste Heat Recovery System commissioned in Nov-2013 and under stabilisation.
Consumption per unit of Production
| ||@ Standard ||Current Year ||Previous Year |
|a) Electricity Kwh/T of Cement * Semi-dry/Dry Process ||98-110 ||81 ||84 |
|b) Coal for kiln K.cal/Kg of clinker Semi-dry/Dry Process ||720-990 ||733 ||736 |
@ Source : Publication of Confederation of Indian Industries * Excludes non-processpower consumption.
(B) TECHNOLOGY ABSORPTION
Research & Development
1. Specific areas in which R & D is carried out by the Company:
a) Improving quality of blended cement through innovative processing utilizingindustrial by-products for improved quality performance of ACC Plants
b) Conservation of resources through maximization of use of low-grade limestone forcement manufacture
c) Development of application oriented Cements with decreased CO2 emissions
d) Development of new products or discovering new methods of analysis
e) Productivity research for increased efficiency in use of resources
f) Recycling of wastes and research for efficient use of scarce materials
g) Characterization of Industrial wastes and looking into possibilities environmentallyfriendly of co-processing wastes in cement manufacture leading to thermal substitution andconservation of natural resources
h) Development and use of Cement Grinding aid and accelerators for PPC & PSC forimproved performance in Concrete and reduced clinker factor in Blended Cements
i) Evolving optimum fuel Mix and Maximization of ashless fuels like Petcoke.
j) Development of Cements tailored for specific market clusters and applicationsegments
k) Development of one of its kind cement in India for reducing water seepage
l) Development of cement based niche products
m) Quality benchmarking exercise for different market clusters of ACC products
2. Benefits derived as a result of above R & D:
a) Effective use of marginal quality raw materials and fuels with improved clinkerquality
b) Increased absorption of blending materials like flyash and slag in blended cements
c) Effective replacement of the costlier natural gypsum by a cheaper by-productphospho-gypsum without affecting the quality of cement
d) Maintain a lead position in all the market clusters of the country
e) Launch of special high performance premium brands like F2R, Concrete Plus, CoastalPlus ACC Plus+, ACC Gold for specific Market segments/Market climatic conditions forimproved Performance and Durability of Resultant Concrete
f) Reduction in Sp. Power consumption for grinding
g) Effective use of statistical Quality Control & Quality tools at each stage ofCement Manufacture for Process improvements leading to improvements in consistency ofOperations and consistency in Quality of the Product
h) Fuel efficiency
3. Future plan of action:
a) Exploratory research works on the above specific areas
b) Focus on development of products aimed at enhancing use of cement in variousapplications and development of application oriented Cement based cementitious material
c) Use of waste/byproducts in cement manufacture as alternative materials
d) Improve product quality particularly with respect to long term durability andreduction in cost of manufacture
4. Expenditure on R & D:
| ||2013 ||2012 |
| ||Rs. Lakhs ||Rs.Lakhs |
|a. Capital ||106 ||172 |
|b. Recurring (Gross) ||743 ||652 |
|c. Total ||849 ||824 |
|d. Total R&D expenditure as percentage of total turnover (%) ||0.07 ||0.07 |
5. Foreign Exchange Earnings & Outgo:
| ||2013 ||2012 |
| ||Rs. Lakhs ||Rs.Lakhs |
|Foreign exchange earned ||78 ||- |
|Foreign exchange used ||18,803 ||7,830 |