We stayed focused on achieving operating efficiencies and enhancing productivity

01 Aug 2018 CW Staff

Established in 1936 in Mumbai, ACC has 17 modern cement factories, over 70 ready-mix concrete (RMC) plants, a vast distribution network of over 10,000 dealers and a countrywide spread of sales units. The company also has over 7,420 talented employees across its operations. Neeraj Akhoury, Managing Director & CEO, ACC, shares more...

Please highlight one major challenge faced in FY2017-18.
2017 was a year of increasing our focus on profitable growth.
We faced a significant increase in the cost of input materials and rising costs of fuel with determination and structured steps to bring into play strong internal performance standards. The ACC team stayed focused on achieving operating efficiencies and enhancing productivity, resulting in a strong performance delivery we are proud of: 14 per cent volume increase, 20 per cent net sales growth and operating EBITDA growth of 29 per cent in 2017 over the previous year.

Particulars	Net sales	Operating EBITDA	Reported PAT
CY2017(Rs billon)	138.46	19.09	9.15
Growth over FY 2016 (in%)	12.56	29.51	41.42

(Accounting year January-December)

What decision do you consider the biggest contributor to the company's growth in FY17-18?
There's no single reason but a clear strategy that encompasses several areas: Innovative products both in cement and RMC, new brand architecture, digital outreach initiatives and a strong distribution and plant network with our capacity to serve both cement and concrete customers. Important contributors were the additional installed capacity at our plants in Jamul and Sindri, which helped improve volume share, as well as creating more ready-mix facilities across India. We also successfully focused on growing our premium product range by 20 per cent.

Please share a decision you avoided, which could have otherwise impacted the company's top-line and bottom-line.
Our focus on developing the right talent, understanding and executing customer focused strategies, making assets operate at world-class performance levels and implementing strong management systems remains the major performance driver. ACC, a member of LafargeHolcim group, derives strength from its global expertise and remains committed to deliver its vision and profits through socially and environmentally responsible actions. We are proud of our strong financial performance that allows us to make substantial investments in technology that produces superior quality cement, and makes our operations safer and become the preferred partner to communities.

What are your plans for the company's growth in FY18-19?
Our strategy for growth has clearly been articulated by Jan Jenisch, CEO of LafargeHolcim Group. Strategy 2022 - 'Building for Growth' - will allow us to more vigorously capture market opportunities, capitalising on the best assets in a growing building materials market. The strategy is based on the four value drivers of growth, simplification and performance, financial strength, and vision and people. The group will execute more aggressive strategies for aggregates and RMC alongside its existing strong cement business, and build a fourth business segment, Solutions and Products, to take advantage of the products and applications that are closer to the customer.