Acc Limited · NSE:ACC
Acc — Motilal Oswal Investor Conference 2011
15 slides from Acc's conference presentation, Aug 23, 2011
Slide 1: ACC Limited
ACC Limited Kuldip Kaura, CEO & MD- ACC Limited, Motilal Oswal Investor Conference, 23rd August 2011
Slide 2: Global Cement Industry
Global Cement Industry Global Demand(MT) (2010) Global Cement Industry is ~3100 million tonnes (MT) with an installed capacity of ~3900 MT 36% China accounts for nearly 50% of the total 58% installed capacity. India is the second largest 7% cement producer in the world, way behind China Rest of the
Slide 3: Indian Cement Industry Scenario
Indian Cement Industry Scenario Per capita cement consumption in 2010 (in kg) Current Cement Demand estimated at ~230 MT in 2011 & present capacity is China 1,210 ~300 MT Cement demand expected to grow at ~ World 433 10% per annum in foreseeable future on the back of ~8+% GDP growth India 176 Lower
Slide 4: 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. 328 59 15% • Infrastructure development – Roads, (18%) Ports, Power, etc Commercial / Industri
Slide 5: Indian Cement Sector Outlook
Indian Cement Sector Outlook Growth Outlook: Demand - Supply Long term GDP growth of 8-9% All values in Mio 373 leading to multiplier effect for 359 tons 342 cement demand growth 329 320 Rising disposable income & Rapid 302 urbanization 291 274 Pricing Outlook: 262 248 Lower Utilization Rate will ke
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 50+ RMX plants SINDRI 10,000 dealers CHAIBASA KYMORE BARGARH CHANDA JAMUL WADI KUDITHINI THONDEBHAVI MADDUKARAI 7 ACC Limited 24.08.2011
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: Financial Performance
Financial Performance 8,027 7,717 7,283 4,801 21.0 21.5 21.3 12.1 2008 2009 2010 H1 2011 2008 2009 2010 H1 2011 Sales Volume (in MT) Revenue (Rs Cr.) 2,644 1,607 1,899 1,213 1,812 1,120 1,160 687 2008 2009 2010 H1 2011 2008 2009 2010 H1 2011 EBITDA (Rs Cr.) PAT (Rs Cr.) 9 ACC Limited 24.08.2011
Slide 10: ACC–Competitive Edge (i)
ACC–Competitive Edge (i) ACC Cement : A Strong Brand Pan India presence High Quality Channel partners & Distribution Network Launch of quality products for different markets/applications like Coastal +, Concrete + , ACC F2R Single window solution provider for Cementitious Materials Hub & Spoke Strat
Slide 11: ACC–Competitive Edge (ii)
ACC–Competitive Edge (ii) High Coal Linkage : In spite of availability and rising prices challenges, highest linkage provides competitive edge over other industry players Captive Coal Blocks: Ensures cheaper coal sourcing in future Captive Power : 361 MW Thermal Power and 19 MW of Wind Farm ACC is i
Slide 12: Significant Growth Opportunity
Significant Growth Opportunity Current Cement demand of ~230 MTPA is estimated to grow to ~ 550 MTPA by 2020 backed by a sustainable GDP growth rate of ~ 8% Good Asset Footprint for Greenfield growth In-house capability to build plants in industry leading cost and time frame Supply Chain & Logistics
Slide 13: Corporate Social Responsibility - a way of business
Corporate Social Responsibility - a way of business Sustainable Community Development – in 100 villages around its operations through livelihood generation, rural infrastructure, literacy, women’s empowerment. Notable successes - 289 self help groups benefiting 2900 women. Education & Training – ACC
Slide 14: 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 and Industry Bombay Natural History Society Award in 1997 for supporting the cause
Slide 15: 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