Railway Interaction

17-5-2012Vikram GuptaKolkata

Construction Market Outlook until 2014 [USD billion]

Western Europe

North America

2.800

2.600

2.400

2.200

2.000

1.800

1.600

Construction sector recovery in mature countries to take years, while Asian growth continues

We are

ACC Limited

Source: IMF World Economic Outlook October 2009 / JP Morgan (Mike Betts), Construction Market Outlook - September 2009

Asia Pacific (developed markets)

Eastern Europe

South & Central America

Asia Pacific (emerging markets)

Middle East Africa

800

600

400

200

1.600

1.400

1.200

1.000

02004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Forecast

We are here!

55

110

165

220

275

330

400000

800000

1200000

1600000

2000000

2400000

Cement consumption may rise to 322 Mn Tons by 2014 from 193 Mn Tons in 2009Historic and forecasted real GDP (in Rs. Cr) and cement demand (Mt)

x 1.29

x1.20-1.29

305 Mt

322 Mt

193 Mt

Cement: 8.5% CAGR

GDP: 6.5% CAGR

Cement: 9.6 – 10.8% CAGR

GDP: 8.0% CAGR

ACC Limited

0

55

0

400000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

E

2013

E

2014

E

Real GDP (Rs Cr; 1993 prices) Real GDP (Rs Cr; 1993 prices) Cement demand (Mt)

Potential forecast low range (Mt) Potential forecast base range (Mt)

§ Over the last 10 years, the Indian cement to GDP CAGR factor was 1.29x.

§ Real GDP in India is expected to grow by a CAGR of 8.0 % until 2014 (Consensus forecast)

§ Assuming a 1.20x (low range) to 1.29x (base range) cement to GDP factor, cement demand could grow by a CAGR in the range of 9.6 to 10.8% over the five years.

Source: EIU, IMF, RBI, Govt. of India, CMA, ACC Analysis

Profile of India

2 Population (Jul 11 E)

7 Rate of inflation (2011 E )

3 GDP growth (2011 E)

8 No. of States

1 Area

9 No. of Union Territories

A. General Information 3.3 mio sq Kms

1.18 billion

8.3 %

7%27

7

4 GDP (2010)5 GDP per capita (2011 E)

1.43 trillion USD3400 USD

10 No. of mega cities 5

6 Labour Force ( 2011 E ) 483 Trillion

ACC Limited

Cement demand/capita

OPC v/s Blended16

15

C. Product & Packaging

B. Cement Industry data

Bags v/s bulk %17

27%

93%

11 Cement prod’n capacity(2011 E) 240 mio tons

154 Kgs

12 Cement demand 184 mio tons13 No. Of cement plants (2008) 14314 RMX production (2008E) ~ 38 mncum pa

73%

7%BulkBag

BlendedOPC

Source: South Asia Monitor (May11), GOI-MoF of f icial statistics ,CMA

No. of mega cities 5

267

What’s our rank in world production?

v Top 50 manufacturers worldwide account for 60% of total cement production

v The Indian cement industry is the second largest in the world

Others17%

Cement production across nations

ACC Limited

China67%

India9%

US4%

Japan3%

17%

Indian Cement Industry - Transformedq 1982 - Watershed point:Partial decontrol of cement industry

q 1989-Total decontrol of cement industry

q Today the industry is World no 2, with world class quality

Description 1982 1989 2005 > 2010

Installed Capacity

29 MTPA 56 MTPA 154 MTPA 277 MTPA

ACC Limited

Competition brought Efficiency, Market driven focus, better quality, prices, new technology, World stature

Capacity

Production 21 MT 42 MT 137 MT 207 MTPA

Technology Predominantly Wet Process

Wet / Dry Process

Predominantly Dry Process

Predominantly Dry Process

Industry Cement Plant Locations

ACC Limited

Installed Capacity: 267 Million Ts

(as in 2010)

Expected all-India cement demand forecast

Cement demand – Historical and projected [mio t]

341312

286263

242224212193

+8.9%

+8.8%

x Y-o-y growthx CEM / capita [kg]

ACC Limited

212193

174160146

20162015201420132012201120102009200820072006

10.111.5 9.3 9.0 10.8 5.6 7.9 8.7 9.18.9

179134 144 153 166 186 201 218 255236

9.2

275

Excess capacity in some states will increase cross regional movement in 2011-2012

HP 6.0Rajasthan 6.0UP 1.2Uttaranchal 1.0Haryana 1.5Punjab 0.0MP 1.1

New Capacity

9

ACC Limited 20.12.09Setting the Context – Cairo Conference 2009

PAST FUTURE

TN 9.6AP 11.0Karnataka 8.8Maharashtra 3.3Kerala 0.0Gujarat 5.8

Chattisgarh 4.3Jharkand 2.0Orissa 3.8WB 2.7

New Capacity

New Capacity

New movements

[mio t]

96

8.2%

2015

123

106

2011

77

5540

6541

12.3%

2015

2011

Available supplyDemand

North Central East

Bathi

Ropar

Gagal

Cement demand in East region to grow fastest in the country

ACC Limited

Source: McKinsey Study 2011; CRISL, Market intelligence ACC & ACL, FP 2011-2015 ACC & ACL

10.2%

2015

195

157

2011

155

107 225

9.9%

2015

373

328

2011

291

51

Total India

South West

hinda

rPali

Wadi

Lakheri

Kymore

lTikaria

Bhatapara

East India: State-wise development[mio t, CAGR 2012-16]

59.6

11.2

19.2

55.9

10.6

17.0

50.9

15.0

46.7

13.4

43.1

12.1WB

+8.5%CAGR12-16

JHR 6.5

BH 7.3

WB 12.2

ACC Limited

5.1

6.0 6.3 6.7 7.1 7.2

8.3 9.2 10.2 11.3 11.6

5.44.74.54.3

2016

5.0

2015

10.6

2014

4.5

9.8

2013

9.1

2012

3.9

8.5

North East

OR

JHR

BH

CH

4.94.2

N-E 5.9

CH 4.8

OR 8.6

Plant footprintPlant footprint

GAGAL

TIKARIA

LAKHERI

SINDRI

DCW

Nationwide presence§ 16 cement plants -capacity of 30 million tonnes/annum

§ 21 sales units, 66 area offices

§ 50+ RMX plants§ 10,000 dealers

Subsidiaries

ACC – A Pan India Presence

13

17.05.2012

KYMORE

CHANDA

KUDITHINI

WADI

THONDEBHAVI

MADDUKARAI

BARGARH

JAMUL

CHAIBASA

DCW

ACC Integrated Plant

ACC Grinding Unit

AssociatesALCON (40%)Asian (45%)Shiva (<10%)

SubsidiariesBCCI (94.5%)Lucky Minmat (100%)

National Limestone(100%)

Encore (100%)

AMRL (100%)ACCCL (100%)

Cement manufacturing processCement manufacturing process

Cement manufacturing process

15

17.05.2012

16

17.05.2012

Lime stone mining, crushing & transportation

17

17.05.2012

Preparation of raw meal..

18

17.05.2012

Pyro processing…

19

17.05.2012

Cement grinding, packing and despatch

20

17.05.2012

Cement manufacturing process animation

21

17.05.2012

Thumb rules:

§ PPC cement

� 70% clinker� 25% fly ash� 5% gypsum

§ PSC cement

� 42% clinker� 53% GBFS� 5% gypsum

§ OPC cement

� 95% clinker� 5% gypsum

22

17.05.2012

1 t clinker 1.5 t raw meal

Raw meal made up of 95% lime stone, 5% additives (Bauxite, iron ore)

1 t clinker 15% coal

HOLCIM Value chain

Transactional

Ready-mixConcrete

Concrete

Direct Sales

Traders Traders

End-users

General Contractors

ChannelsTransformational

CementitiousMaterials

(cement,mineral

SupplyBasic Materials Processing

Housing

Demand

Appl

Applications andConstruction Fields

ACC Limited

Mortars

Asphalt

Concrete Products

Direct Sales

Traders

Wholesalers

Retailers

Traders

Wholesalers

Retailers

Civil Engineering

Masons

Self -builders

mineralcomponents)

Aggregates

(sand, gravel, stone, recycled aggregates)

Infrastructure

Commercial / IndustrialBuilding

l icat ions

Multi-storey, Commercial, Infrastructure fast growing segments IHB growing slowest; Mass Housing has wide variance in growth forecast

2007 market (MTPA)

2007 market (MTPA)

Percentage of cement in 2007 and 2011by Demand segment

Percentage of cement in 2007 and 2011by Demand segment

2011 market (MTPA)

Base-Upside

2011 market (MTPA)

Base-Upside

4-Yr CAGR forecast (%)Base-Upside

4-Yr CAGR forecast (%)Base-Upside

IHB

Mass housing

75 91-95 5%-6%

8 11-13 8%-13%

40

% of Total Market

110

100

90

80 • IHB

ACC share2ACC share2

23%

24

17.05.20121. Includes institutional cement – growth primarily from Commercial segment (Organized retail / IT / ITES) 2. ACC Share only in locations ACC operates – Avg ~18% from HVC templateSource: Demand Pool study; BP Study; HVC Template data; 10th and 11th Five year plans, Interviews with industry experts

Commer-cial1

Industrial

Infra-structure

Multi-storey

27 47-51

10 13-14 6%-7%

25 39-44 12%-15%

160 230-249 9%-11%

15 29-32 18%-21%

15%-17%

16 17

6 6

913

4740

5

80

70

60

50

40

20

10

0

• Infrastructure

• Industrial

• Commercial30

• Multistorey

• Mass housing

• IHB

2011 Base case (mtpa)

20

5

2007 (mtpa)

17

23%

15%

12%

16%

15%

13%

Cement logisticsCement logistics

VCX : Across the Value Chain

26

17.05.2012

Inbound logisticsInbound logistics

§ Coal-

� Linkage coal-SECL, MCL, ECL, � Market coal-CCL, SECL, MCL� Imported coal

§ Mineral Gypsum-

� Bhutan� Rajasthan� Thailand

Contd..

28

17.05.2012

� Thailand� Iran

§ Chemical Gypsum

� Tata Chemical Haldia� Paradip Phosphate

§ Marine gypsum from coastal areas

§ Lime stone

� Own mines� High grade limestone-purchased from market

Slag sources & availability in East

DM

0.15 / 0.80 IISCO - Burnpur

0.58 / 1.0 SAIL -Durgapur

2.0 / 3.0 TATA -Jamshedpur

0.1 / 0.1 Usha Martin

0.96 / 2.0 SAIL – Bokaro

0.04 / 0.04 Kalinga - Barbil

0.04 / 0.04 Electrosteel - Khardah

0.1 / 0.2 Tata Metallics - Kharagpur 0.75 / 1.5 SAIL -Rourkela

0.1 5/ 0.15 Jindal -CH

SD

9.45

16.9

0.22 / 0.22 Bhushan - Sambalpur

0.9 / 1.8 TATA - Saraikela

Capacity by state0.25/ 0.6 Electrosteel – Bokaro

29

ACC Limited

Grinding plant

Integrated plant Existing Steel plant

JL

1.54 / 2.2 SAIL - Bhilai

1.90 / 2.55 RINL - Vizag

0.16 / 0.16 Jaiswal Neco - Raipur

0.36 / 0.36 NINL - Duburi

0.1 5/ 0.15 Jindal -Raigarh

BG

JL

CH

New steel plant

AP

West Bengal

Jharkhand

Orissa

Chattisgarh

0 / 1.2 Posco0 / 1.1 Essar – Paradeep

0 / 0.9 Mittal – Keonjhar0 / 0.6 Jindal

0.9 / 0.9 Tata0.05 / 0.05 Visa0.2 / 0.2 Mesco -Kalinganagar

2011 2015

Expansion Steel plant

[Mio t/y]

Fly ash sources in East

30

17.05.2012

Outbound logisticsOutbound logistics

Challenge in cement distribution - trend shifting to small lot size deliveries.

Production and

despatch capability/Economic lot size etc

Customer demand – lot

size considerations

32

17.05.2012

1990s

Free commodity

Lot size :Part truck load

> 2000

Free commodity

Lot size : “Nano” deliveries

1987

Partial decontrol

Lot size :Large Truck loads

1982

Controlled era

Lot size :Full rake

Outbound Logistics

Direct despatch from

Plant to Dealer by road

Rail despatchto Warehouse

Road despatch to Warehouse

Daily 40 rakes on the run

85 Transporters

33

17.05.2012

ACC WHRail siding

Dealer

Warehouse

Movement of cement from Rail head to Warehouse

Movement of cement from Warehouse to

dealer

Movement of cement from Rail head to Dealer

21000 trucks

Rail road coefficient:

35%

65% 66%

34%

2011 2012

34

17.05.2012

ACC Rail volume 9 lakhs MT /month ,108 lakhs MT/ month

Operating through 370 railheads all over the country

Outbound rail freight 58 Crores /month , 700 Crores /annum

Rail coefficient Road Coefficient

Levers for rail strategy

Description

2

Open new rail heads New rail heads are opened where demand is greater than siding handling capacity (with restrictions)

Transportation on a high volume route outsourced to a Private Operator. Selected destination is ICD of Private of operator

Outsource to Private train operators

1

Rail and road mix Destinations where road freight is lower than rail or vice versa to

Use/buy different types of rakes

For material which can be transported by special wagons, buy own rakes e.g., Clinker

Levers

3

ACC Limited

35

4 Rail and road mix optimization

Destinations where road freight is lower than rail or vice versa to be increasingly served by lower mode

Free time loading and unloading

ACC wide roll out of Free time loading and unloading module

5

Enablers§ Convene cement industry to start a constructive dialogue to partner with railways (e.g., provide special schemes, wagon types, incentives for cement transportation by rail)

§ Detailed stakeholder management at every level to ensure relationship management and streamlining of operation issues e.g., efficient recovery from railways, rake availability etc

Optimizing rake movement by analysing back haul opportunities

Analysing movement of rakes in zone ( generation of emptys, loading areas, timings of loading etc) to suggest more optimised rake plan involving movement from plant

6

1,082

491

1,761

34

0

7079 1,996

235

5

183

001,317235

Potential of third party logistics operators:Chanda- Turbhe to private operator has potential of saving ~ Rs 2 Cr

§ Container rakes to be used for transport of bagged cement subject to feasibility of loading 28MT per TEUAt unloading point,

Cost of transportation by Concor rakeRs/ ton

§ Total tonnage on route 1.4 lac tons

ACC Limited

36

1,916259103

1,198

0

223

TotalDam-ages

Second-ary Frt/ton

Warfage at des-tination

33

Handling charges

326

70

DC at des-tination

30

Frt/tonDC at source

§ At unloading point, container to be shifted to truck for transfer to warehouse or direct sale

§ Savings on account of reduced handling

Cost of transportation by IRrake

Rs/ ton

lac tons§ Savings/ ton Rs 155/ ton

§ Annual savings Rs 2.2 Cr

Projected Volume

Cement Production/ year Tons 1000

Clinker Volume Tons 451

Projected Volume with

own rake

Turn around time ( Own Clinker rake) Hrs 86

No. of trips in a year No. 100

Volume/ wagon Tons 66

Clinker Volume/rake Tons 3960

Total Volume/ Year Tons 396000

Freight per ton ( Chaibasa - Sindri ) Rs 389.7

Rebate per ton % 20§ IRR:

Buying a SPW rake, would lead to annualized savings of ~ Rs 2.5 Cr1

ACC Limited

37

Rebate per ton % 20

Savings/ ton Rs 77.9

Total Savings Rs Cr 3.1

Maintenance Cost

Maintenance cost Rs

5% of Undercarriage

cost with 5% escalation

Total maintenance cost Rs Cr 0.57

Investment Cost Cost of Rake Rs Cr 15

§ IRR: 14.36%

1: Analysis done for Chaibasa – Sindri route. To be followed by Jamul – Sindri, Damodar, Kharagpur

Warehousing-operationsGood stacking at Cuttack

WH

38

17.05.2012

Safety training in

Breakfast meeting

Shalimar WH

Our focus on reducing loading & unloading time

09-04-07/SSA/DJ

Our focus on reducing loading & unloading time

Free time loading – As Is process mappingPROCESS MAPPING FOR CEMENT RAKE LOADING AT BCW

Placement of Indent with the

availibilty of cement

→Rake Arrival at Bargarh Rly.

Station →Supply Order by

Rly. Authority →Arrangement of loaders/packers

etc with the availibilty of

packer & loader machine

→Placement at E-Yard 200 mtrs

from BRGA Rly. Station

→Rake Arrival at BCW Yard by

our Hired LOCO in rest line (4.5 Km away from

Ex-Yard)

→Releasing of

vaccume pressure →

Placement of 42s wagons in line no.5/6 for

cement loading by our LOCO

→Placement of 6-8 wagons in line no.2 for cement

loading if required

Responsibilty SKM/GRS SKM/GRS SKM/GRS GRS/LV PPP PPP PPP PPP PPP

Cycle Time

Zero Time Start 45 Min. 20 Min 40 Min 15 Min

↓Shifting of 32-35 loaded wagons

to Ex-Yard ←Rake formation for 32-35 loaded wagons in line ←

Inspection of Wagons after loading, Door ←

Wagons loading continue ←

Placement of remaining

wagons in line ←Review of

loading ←Start of loading

of cement ←Inspection of Wagons &

issuing of reject ←Door Opening &

Cleaning of Wagons

T1

T2

ACC Limited

40

to Ex-Yard ← wagons in line no.4/5/6

← loading, Door closing &

sealing and issuing of

loading memo

← ← wagons in line no.2/5/6

← ← ← issuing of reject memo if any wagon found

reject

← Wagons

Responsibilty GRS/LV GRS/LV/PPP GRS/LV GRS/LV GRS/LV GRS/LV GRS/LV GRS/LV GRS/LV

Cycle Time 14 Hours 15 Min 15 Min

↓Inspection of Wagons after loading, Door

closing & sealing

→Rake formation for remaining wagons in line

no.4/5/6→

Shifting of remaining

loaded wagons to Ex-Yard

→Final rake

formation at Ex-Yard →

Inspection of rake & Finally handover to

Railway

TOTAL CYCLE TIME 18 Hours against free time of 11 Hours

Free Loading Time 9 Hours & Transit 2 Hours against actual 14 & 4 hours respectively

Responsibilty GRS/LV

GRS/LV/PPP PPP PPP PPP

Cycle Time

1.30 hours

T2 T3

T1 + T3 = 2 HoursT2 = 9 Hours as per

Railway Norms

T1 + T3 = 4 HoursT2 = 14 Hours as per

Actual

A few actions and their results:

High haulage time for rake

High Loading & Unloading time

Bunching

Unavailability of equipment

Unavailability of space

Workman unavailability

Delay in shifting

Unloading Space constraint

Maintenance

No of equipment low

Shift change/lunch/ tea break

Frequent absenteeism

Spout sizeCoal rakes Loco capacity

No. of shuntingSlag rakes Packer problem

Demurra

ge

Demurra

ge

Creation of focused workgroup under one umbrella

Ownership & People focus

§Individual ownership for

bunching , Track cleaning,

Loading, Unloading, Shifting

§Educating workers

§Brainstorming meeting for

idea generation

§Free lunch /tea for Loco

Contract modification

§Single contractor for

loading & shifting

§Rate changed from running

hrs to Rs/t basis

§Penalty clause

Technical modification

§Increase in dia. of loading

chute,

§single switch for all spout

§Introducing pre stacking,

§simultaneous mechanized

& pay loader loading

§Modification of belt

Bunching

§Pre monthly planning of

incoming rakes

§Daily monitoring through

FOIS

§Control on local slag rakes

§Back loading of clinker &

cement

ACC Limited

41

§Free lunch /tea for Loco

drivers

§Modification of belt

conveyor & aeration system

cement

Impact achieved

10.814.917.5

20.522.4-17%

Dec’112011201020092008

Avg rake unloading timeTime saver of the month

Zone coordinator concept to reduce transit time & increase direct despatch from railhead

Bihar

JharkhandWest

North East

Interchange point:

Jharsuguda,

Bondamunda

Susil Kr.Joshi

Interchange point:

Nimpura

Tapas Mukherjee

Interchange point:

Andal ,Asansol

Sandip Roy

42

17.05.2012

Jharkhand

Odissa

West Bengal

ChhattisgarhDaily tracking mechanism

How to reduce cost further?•Cost to serve minimization/ contribution maximization model•Done by IGSA team at based on Hyderabad•Inputs are –District wise Sales demand

•Price•Plant Variable cost•Production capability at Plant•Distribution cost

•Outputs are-•Plant-SU-WH-District wise rail /road despatch plan•Distribution cost estimate•Monthly variance analysis•Reverse run analysis

43

17.05.2012

•Reverse run analysis

Bihar

Jharkhand West Bengal

North East

ChhattisgarhIntegrated nitGrinding Unit

Contribution range in Rs/t

SU

1350-1500 Kolkata,Ranchi,Patna,Asansol

1200-1300 Raipur

1000-1100 Bhubaneswar

Reaching our high contribution market through L1 routes (Example)

44

17.05.2012

Odissa

Chhattisgarh Grinding UnitSubsidiary Unit2X2 allocation matrix to focus on

core markets

•Move filler to home•Reduce lead

Our concern for stakeholders

17.05.2012

Our concern for stakeholders

Various activities are undertaken to engage with logistics stakeholders

Eye camp for drivers in progress at Jamul Cement Works

Rest shelter for drivers at Chaibasa Cement

works

46

17.05.201217.05.2012

Drivers Training by Professionals :Damodhar

Sustainability

17.05.2012

Sustainability

17.05.2012

Launch of Institutionalizing Excellence

5 step approach for sustainability of Transformation

Gap analysis

Structured training through academies

Module dashboards and performance boards

Suggestion schemes

Capability building

People Engagement

Leveraging pride

1 2

3

49

17.05.201217.05.2012

Reward superior performance

Felicitation of Champions

Awards nights

Dashboards, War room conceptimplementation at all levels

Pulse check surveys

To drive positive communication and change

Best Practices sharing across region

Awards and Recognition

Measuring change

pride champions

3

4

5

Sustainability through Pride Champions

Master Coach

Three categories of pride champions ...Three categories of pride champions ... ... with different needs... with different needs

Develop into prospective future leaders

Take up higher

... hence different approaches for each

category

... hence different approaches for each

category

Under the mentorship of Functional Director• Focus on building leaders for tomorrow• Career progression and planning

Mentor-Mentee Scheme

1

2

50

17.05.2012

Coach

Non-Management Staff

Take up higher responsibilities in the organization

Higher engagement in Transformation Program and Module Initiatives

Mentor-Mentee Scheme• Pride champions assigned to mentors• Plan for each mentee, including involvement in Transformation Program, Trainings and driving positive communication

Drive engagement through higher involvement in • Module meeting• Ideation sessions• RCA sessions• Training programs

2

3

Grinding§ Topic-wise centres of Excellence

�One team per major concept

Mining

A virtual centre of excellence structure to drive and support continuous improvement program

Clinkering

Engagement

§ Regional coordination of centre of excellence

� Sharing of “Best Practices”

51

17.05.2012

concept�Each team comprises of members from all plants

§ Implementation teams

�One team per plant� Includes plant members for each topic

�Each team sponsored by plant manager in respective plant

Jamul Chaibasa Sindri

Bargarh Damodhar

Packing & logistics Power plantSafety Maintenance

Procurement

Jamul Regional officeBargarh Chaibasa Sindri Damodhar

Academies & workshops conducted regularly for a highly motivated and capable force Engaging pride builders across the region for leading the transformation journey

“Creating a Winning Culture” Project 30 30 academy at Kolkata

What’s the Story?• Academies conducted forkey members from salesunits & coaches on 30:30tools and programs

• Mindset & Behaviour (M& B) workshop conductedwith SU Heads and 3 SUteams

52

17.05.201217.05.2012

“Creating a Winning Culture” workshop conducted at SUs

An inspirational moment at the coaches academy

Project 30 30 academy at Kolkata

Let the learnings roll…

• Pricing academy andLarge buyer academyplanned in Feb ’12• M & B sessionsplanned for all SUteams for “Creating aWinning Culture”

Pilot approach

Knowledge Sharing Platform

Sustainability through constant capability building

§ Centre of excellence§ Quarterly VCX academies§ Innovate to excel platform

§ Cross functional working group for pilotprojects & recognition scheme:§ Nano delivery, STO reduction,Demurrage reduction

53

17.05.2012

Platform

Focused training

§ Subject matter trainings organized byRITES, IIM s, CII & seminars§ In house training program on Business &financial acumen, Negotiation skills etc.

Emerging trends and way forward

17.05.2012

Emerging trends and way forward

§ Split location plants using the hub and spoke model is being increasingly adopted.

§ Ideal clinkering capacity will be 3.5 mio tonnes.

§ There is a marked movement towards consumption of bulk cement. Increasingly bulk cement will be transported.

Going forward…

55

17.05.2012

cement will be transported.

§ There will be more cement handling/packing units in the markets or close to the MIC sources

§ Last mile will be increasingly handled by road.

Going forward…

§ Existing infrastructure condition, at most of the rail heads, will need upgradation. Automation is the emerging theme in cement

Cement bag bursts and flows down

from the wall of the wagon

Stone chips and water on the floor of the

wagon

56

17.05.2012

need upgradation. Automation is the emerging theme in cement handling

§ Sidings at new locations will have to be developed

§ Technical intervention in some areas, eg. covering N BOX rakes during monsoons, is required

§ Cement consumption – the shift from bags to bulk has to be noted

§ Shalimar was a very big step in creating infrastructure. More such steps need to be taken

§ ACC will be investing in greenfield unit in West Bengal

§ ACC will increase capacity at its Sindri unit. Clinker will go from Chaibasa

§ ACC is increasing clinkering capacity at Jamul

ACC’s expansion plans in the East.

57

17.05.2012

§ After Jamul, ACC will start working on more clinkering capacity in Chattisgarh.

58

17.05.2012