The demand rebound in the sector is mirrored in our strong sales growth, with successful new product launches as well as market acceptance of several of our value-added products.

Dear Shareholders

I hope you and your families are doing well. My heartfelt gratitude to all our frontline teams who put aside their individual priorities and worked selflessly to help others. We also partnered with the government, medical care facilities and our communities to mobilise all necessary resources to save lives.

MACRO ECONOMY AND HIGH GROWTH PROSPECTS

The cement sector has shown a healthy rebound in 2021. We have witnessed a good demand in rural and semi-urban affordable housing, supplemented by pent-up demand in the urban housing and commercial segments. A prudent budget with a focus on inclusive development, productivity enhancement, energy transition and climate action will help our country transition to the next phase of development. Increased expenditure on infrastructure and capacity building along with the launch of ‘Gati Shakti scheme’ will further boost demand.

RECOVERY BACKED BY RESILIENCE

ACC’s robust performance and results have come with improvements in EBITDA and free cash flows. Despite higher fuel costs, our cost efficiency measures under ‘Project Parvat’ coupled with gains from numerous sustainability-led initiatives, increased our bottom line growth. The demand rebound in the sector is mirrored in our strong sales growth, and a year of successful new product launches as well as market acceptance of several of our value-added products. Our Ready-Mix (RMX) concrete business is doing well and we expect a strong demand with increase in commercial, industrial and government spend. With healthy returns on a debt-free balance sheet and clearly defined strategic priorities, we continue to increase our outlays in sustainability, growth and efficiency projects.

OUR RELENTLESS FOCUS ON ESG

The world now has a clear view of the social and environmental challenges that we face. The need for action has never been greater. We recognise this and are aware that we, too, have an important role to play towards promoting sustainable living.

SUSTAINABILITY AT THE HEART OF OUR BUSINESS STRATEGY

ACC has its 2030 carbon emission reduction targets endorsed by the Science Based Targets initiative (SBTi). The Company has signed the 'Business Ambition for 1.5°C' pledge and joined the Race to Zero campaign of the United Nations Framework Convention on Climate Change. This makes us the first company in the Indian construction sector to sign the 'Business Ambition for 1.5°C' commitment with 2030 intermediate targets approved by SBTi.

We will continue our proactive approach to developing low carbon products and sustainable solutions. With the launch of ECOPact, customers now have an option to choose concrete based on their desired level of CO2 reductions and sustainability objectives. We will continue to launch other innovative 'Green Cement' solutions as the sustainability needs of our market evolve and mature.

Green Building Centre (GBC), our unique rural-connect initiative, is a catalyst in rural development and provides our local associates with opportunities for rural entrepreneurship and independence. We are fast ramping up this network, with 100 GBCs fully operational and another 50 to be launched through franchisees.

Our robust partnership with Geocycle has seen seven of our co-processing kilns handle upto 5 Lakh tonnes of waste annually to generate Alternative Fuel Resources (AFR). We were also able to maintain thermal substitution rate of 7.25%. A total WHRS capacity of 38.7 MW will be operational by 2022 and our AFR energy mix, including renewables, is expected to fulfil one-third of our power needs by 2025.

DEVELOPING EQUITABLE AND INCLUSIVE COMMUNITIES

We continue to support our communities through community development initiatives in the areas of Sustainable Livelihoods, Quality of Education and WASH (water, sanitation, health and hygiene). This year, we inaugurated a new DISHA centre at Chaibasa, constructed 25 watershed structures for water conservation in communities. We also supported more than 1,700 women entrepreneurs and 2,300 farmers through our interventions. Despite the challenges, we continue to deliver on our commitment to driving inclusive social growth through our education, health, sanitation and other initiatives.

GOOD GOVERNANCE IS AN ESSENTIAL PART OF OUR BUSINESS

Our governance framework and philosophy are inspired by our ethics, values and culture of professionalism. The Board remains the custodian of trust for sustainable long-term wealth creation. We emulate the best practices that are adhered to in the realm of corporate governance globally, and these practices are integrated into our growth strategy. Across our day-to-day operations, we conform to complete transparency and accountability to protect stakeholder interests.

DIGITALISATION

Our sustained efforts initiatives around 'Plants of Tomorrow' – application of automation technologies, robotics, artificial intelligence, predictive analysis and maintenance continue to get integrated across all our plants. With the Transport Analytics Center, we have implemented a dashboard on secondary lead analysis and direct dispatch. Our supply chain automation and optimisation exercise built on the Blue Yonder platform started delivering results this year. This has led to better operational planning, leading to increase in sales and profitability. These measures will also reduce our carbon imprint and contribute towards our sustainability targets.

OUR RAZOR SHARP FOCUS ON HEALTH & SAFETY (H&S)

The ‘Boots on Ground’ initiative of the Company has continued to be an integral part of the H&S governance and assurance system. A health and safety scorecard system was also implemented in 2021 to ensure standard operating procedures were being followed. In 2021, we clocked 10,91,145 hours BOG hours compared to 7,87,233 hours in 2020, boosting employee morale and increase in shop floor engagement.

AIMING FOR A DIVERSE AND INCLUSIVE WORKFORCE

We recognise the value of a diverse workforce. We are committed to providing equal opportunities in employment and creating an inclusive work culture in which all employees are treated with respect, dignity and are able reach their full potential.

ACC has taken steps and emerged stronger during the crisis. As everyone is getting back to business, we are firmly committed to also build a healthier world together. We hope to receive the same level of support from our stakeholders as we invest in growth, innovation and sustainability. My deepest gratitude for all the support and confidence that you have shown in ACC.

Here’s wishing every one of you a healthy, safe and fulfilling year ahead.

Regards,
Sridhar Balakrishnan