A word with ACC: India’s Most Admired Construction Brand

01 Jun 2022

ACC's reputation today is that of a pioneer that consistently sets new benchmarks and achieves them backed by innovative research and product development. “This, in our opinion, is the key parameter that has contributed to us being one of the most admired brands offering construction solutions in India,” says Sridhar Balakrishnan, Managing Director & CEO, ACC. Other factors bolster the company’s reputation too. With experience and expertise spanning over eight decades, ACC has contributed to India’s progress.

“A consistent focus on sustainable business practices with greater use of technologically advanced processes has enabled us to grow stakeholder value,” mentions Balakrishnan. That includes introducing blended cement brands – which have a smaller carbon footprint – to the market, or by installing waste heat recovery systems at our manufacturing plants that minimise dependency on electricity grids and curb carbon emissions. He shares more…

Amid the pandemic, did you manage to increase sales, improve margins and enhance market share?
Our performance during the year was marked by strong growth in cement volumes as well as higher price realisations. Despite a steep increase in fuel costs, our cost-efficiency measures under project ‘Parvat’ enabled us to deliver a robust performance in 2021. Hence:

  • Net sales increased 17.3 per cent YoY to Rs 15,814 crore.
  • Cement sales volumes rose 13.1 per cent over the preceding year to 28.9 million tonne.
  • ACC’s operating profit, too, witnessed a healthy growth over a year ago. Operating profit increased 27.6 per cent YoY to Rs 3,000 crore.

    Segment-wise, the company’s cement operating profit (EBITDA) increased 26.7 per cent YoY to Rs 2,903 crore, while operating margin rose from 18 per cent in 2020 to 20 per cent in 2021.

    The operating EBITDA for our ready-mix concrete division, too, increased 61.7 per cent YoY to Rs 97 crore. EBITDA margin of this segment rose from 6 per cent in 2020 to 8 per cent in 2021.

    ACC, with 17 cement plants and an installed manufacturing capacity of 34.45 mtpa, ranks among India’s largest cement makers.

    What is the one thing that your customers value most about you?
    ACC wants to position itself among India’s premier construction solutions providers that are sustainable. This finds widespread appeal among our clients. We have led in creating effective low-carbon construction solutions as customers today look for construction solutions that manage the ambient conditions better. Further, our customers trust ACC to provide solutions that are the right fit at the right price.

    How will your FY22-23 plans continue to contribute to this admired quotient?
    At the start of every fiscal, ACC aims to deliver strong returns to shareholders, best-in-class and sustainable products to customers and create shared value for our employees. This year will be no different. All strategic initiatives are geared to strengthen brand equity, offer innovative products, drive our sustainability strategy, focus on cost efficiency and management, reinforce a strong corporate governance framework to support organisational needs, and build robust growth plans.

    As part of our sustainable innovations, ACC recently facilitated the building of the “Gratitude Eco Villa” in Puducherry. One objective here is to prove that construction need not always have a negative impact on the environment.

    “ACC aims to deliver strong returns to shareholders, best-in-class and sustainable products to customers and create shared value for our employees.”

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