ACC CEMENT

RHISHABH SAHU
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JL23RM041
 INTRODUCTION
WELCOME TO ACC Born from the 1936 merger of ten companies, ACC rose as a national champion,

CEMENT
fueling India's post-independence construction boom. Over decades, it expanded
across 17 plants, diversified into concrete, and embraced sustainability. Today, it
leads the market, trusted by builders for homes, highways, and more. As part of
the Adani Group, ACC's future promises continued growth, greener solutions, and
unwavering commitment to building a stronger India.

ACC's Journey:
• 1936: Formed through the historic merger of ten Indian cement companies,
marking the birth of a national champion.
• 1950s-60s: Expansion and modernization, playing a crucial role in India's post-
independence infrastructure boom.
• 1970s-80s: Technological advancements and diversification, introducing new
cement grades and entering the ready-mix concrete market.
• 1990s-2000s: Globalization and consolidation, acquiring and merging with other
companies to strengthen its market position.
• 2010s onwards: Focus on sustainability and innovation, leading the way in green
cement production and developing high-performance building materials.
• 2022: Joins the Adani Group, paving the way for further growth and synergies
within the infrastructure sector.

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MISSION
• To be a leader in the Indian building materials industry by providing innovative
and sustainable solutions for residential, commercial, and infrastructure projects.
• To deliver exceptional value to customers through efficient operations, diverse
product offerings, and reliable service.
• To create a positive impact on stakeholders, including employees, investors, and
communities, through responsible business practices and social commitment.

VISION
• To be recognized as the most respected and trusted brand in the Indian construction
sector, synonymous with quality, innovation, and sustainability.
• To shape the future of India's built environment by contributing to sustainable
infrastructure development and green building practices.
• To inspire and empower people through its commitment to excellence,
collaboration, and social responsibility.
 SHAREHOLDI
NG
• Promoter: 56.69%
• Public: 22.94%
• DII: 13.26%
• FII: 7.10%
• Others: 0.01%

ACC Cement boasts a diverse yet strategically controlled shareholding structure. The Adani
Group reigns supreme with a dominating 56.69% stake, ensuring clear direction and vision.
While retail investors own a respectable 22.94%, their presence creates a balanced landscape.
Domestic institutional giants like mutual funds and insurance companies contribute 13.26%,
bolstering the company's financial stability. Global influence remains muted with foreign
institutional investors holding a mere 7.10%. The remaining sliver belongs to individuals and
employees.
This structure offers several advantages. The Adani Group's dominance fosters consistency
and long-term vision. The diversified public and institutional investor mix provides liquidity
and helps mitigate volatility. Minimal foreign exposure shields ACC from global market
whims. Overall, ACC Cement's shareholding paints a picture of a stable, well-rounded
company strategically driven by the Adani Group, yet responsive to a broader investor base.

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 NET PROFIT

• 2023: Net profit declined by 53.8% compared to 2022 (Rs 1,851 crore).
• 2022: Net profit increased by 30.3% compared to 2021 (Rs 1,421 crore).
• 2021: Net profit increased by 29.7% compared to 2020 (Rs 1,099 crore).
• 2020: Net profit declined by 6.8% compared to 2019 (Rs 1,180 crore).
• 2019: Net profit increased by 9.2% compared to 2018 (Rs 1,081 crore)

ACC Cement's net profit has been a bumpy ride over the past five years,
showcasing no strong upward or downward trend. While 2022 saw a healthy 30%
increase, 2023 brought a steep 54% decline compared to the previous year. This
dip can be attributed to several factors, including a change in financial year end,
potentially higher expenses, and possibly lower sales.
Despite the recent stumble, ACC's long-term performance has been relatively
stable. However, a broader analysis considering factors like revenue, operating
margin, and debt would provide a more nuanced picture of the company's
financial health.

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 RETURN
ON
EQUITY

• 2023: ROE declined by 64.08% compared to 2022 (14.44%).

• 2022: ROE declined by 12.23% compared to 2021 (16.26%).
• 2021: ROE declined by 1.24% compared to 2020 (17.47%).
• 2020: ROE declined by 22.54% compared to 2019 (18.99%).

ACC's ROE has taken a nosedive over the past five years, diving significantly
from 18.99% in 2019 to just 4.68% in 2023. This plunge can be linked to a
shrinking net profit, potentially lowered shareholder equity, or accounting
policy changes.

While the recent trend paints a concerning picture, further investigation is

needed. Comparing ACC's ROE to industry averages and its competitors
would provide valuable context. Additionally, examining other financial
metrics like revenue and debt would offer a more comprehensive view of the
company's financial health.

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 SALES

• Year 1: Sales 4,434

• Year 2: Sales 5,201
• Year 3: Sales 4,790
• Year 4: Sales 4,536
• Year 5: Sales 3,987

ACC's sales, like a restless child, haven't settled over the past five years. While
2019 saw a glorious peak, the recent slide has landed them at the bottom: a
13.8% drop in 2023. Possible culprits? Shifting market demand, fierce
competition, and perhaps even internal wobbles.
Though the recent dip raises concerns, a longer view is needed. Units sold also
remain a mystery, making a complete picture elusive. To truly understand ACC's
sales story, other metrics like market share and revenue must join the chorus.

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 ACC CEMENT
• Net profit for the 15-month period was Rs 564.27 crore, significantly lower than the previous year's Rs 1,396.33 crore due to various factors like increased
expenses and a change in financial year end.
• Quarterly performance varied throughout the year, with the June quarter showing the highest YoY growth in revenue.

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THANK
YOU