Looking
Ahead with
Optimism
As we move forward, we remain steadfast in our pursuit of excellence, continuously striving to set new benchmarks in the cement industry. With a strong foundation, a dedicated team, and a clear vision, we are poised to achieve even greater heights in the years to come.”
Dear Shareholders,
As we reflect on the conclusion of an eventful financial year, I am delighted to address you with a sense of pride and accomplishment. This year has been transformative, redefining our approach to business and synergies holistically. Through this period, the power of our dedication to strategic growth, innovation and sustainability has been evident, showcasing the success that stems from our unwavering commitment to quality, manufacturing excellence, health and safety, and robust supply chain capabilities.
At ACC, we continually seek innovative ways to generate value for our stakeholders, through our wide range of green products. As India’s infrastructure growth driver, our strengths emanate from our pan-India presence, diversified geographical reach, a robust network of channel partners, long-term raw material sourcing, a strong balance sheet and our iconic brand.
Growth in Operating EBITDA
in FY 2023-24
Revenue from Operations
Profit after Tax
First and foremost, I would like to express my gratitude to our esteemed shareholders for their unwavering support and trust in our Company. Your confidence has been instrumental in driving our success, and we remain steadfast in our commitment to delivering long-term value and sustainable growth.
ACC, in collaboration with its parent Company Ambuja, has consistently reinforced its position as a frontrunner in the cement industry. The unwavering dedication and determination of our team have propelled us towards remarkable achievements, positioning us as industry leaders.
Our financial performance stands as a testament to the resilience and adaptability of our business model. We have emerged stronger than ever, showcasing our ability to deliver value for our stakeholders with our sheer determination.
Through strategic planning, implementing a blueprint of improvements, Group synergies and capex for efficiency and decarbonisation, we are making remarkable strides in our growth plan, operational excellence, and customer-centricity. We have not only sustained our position in the market but have also advanced further, forging new paths of success. Our unwavering commitment to quality, innovation, and sustainability has enabled us to deliver exceptional value to our stakeholders and create a positive impact on the end users we serve.
As we move forward, we remain steadfast in our pursuit of excellence, continuously striving to set new benchmarks in the cement industry. With a strong foundation, a dedicated team, and a clear vision, we are poised to achieve even greater heights in the years to come. Together, ACC with Ambuja, we are shaping the future of the cement industry and redefining what it means to be a leader.
India Holds Out Hope
India’s emphasis on infrastructure development, increased spending to stimulate the rural economy, and intensified focus on affordable housing set the stage for a strong resurgence in cement demand. According to ICRA, cement volumes are expected to grow by 9-10% y-o-y in FY 2024 and 8-9% y-o-y in FY 2025. This anticipated growth, driven by sustained demand from housing and infrastructure sectors, aligns with the broader outlook for the cement industry.
Year in Review
Our commitment to operational excellence, cost reduction, and expanding our dealer network yielded robust growth in top line and margins. Revenue surged by 12.2%, operating EBITDA grew by ` 1,772 crore, and the EBITDA margin expanded by 8 percentage points, reaching 15.3%. Success in Ready Mix Concrete (RMX) and construction chemicals businesses, coupled with a 30% reduction in kiln fuel costs, underscores our focus on operational efficiency
Our financial performance stands as a testament to the resilience and adaptability of our business model. We have emerged stronger than ever, showcasing our ability to deliver value for our stakeholders with our sheer determination.
The commissioning of the Ametha Integrated Unit and the acquisition of the balance stake in Asian Concretes and Cements Pvt Ltd contributed to augmenting ACC’s cement capacity. The Waste Heat Recovery System (WHRS) capacity reached 46.3 MW in addition to the ongoing projects at Chanda (18 MW) and Wadi (21.5 MW), scheduled to be commissioned in FY 2024-25 which will together result in ~25% WHRS share in total power. The recent ‘Bharosa Atoot’ TV campaign and collaborations with Gujarat Giants in the Pro Kabaddi League exemplify our commitment to strength, trust, and nation-building through sports.
Enhancing profitability remains pivotal, and our Master Supply Agreement (MSA) with Ambuja Cements has proven instrumental in boosting both volume and profitability. The partnership reinforces our commitment to sustainability, promoting efficient resource use.
Powering the Nation’s Growth
In our relentless pursuit of fuelling our nation’s growth, ACC along with its parent Ambuja, has already set in motion ambitious capacity expansion projects, amounting to a total of 20 MTPA. These projects span across every region of the country, outlining a comprehensive roadmap towards achieving a staggering capacity of 100 MTPA by FY 2025-26. To ensure self-sufficiency and bolster our operational capabilities, we have successfully secured winning bids for coal and limestone mines.
Recognition and Innovation
Our unyielding pursuit of excellence has led us to recognise the immense potential of digitisation as a significant catalyst in our cement growth strategy. It has emerged as the driving force behind the transformation of our entire value chain, starting from quarry to lorry. By embracing technology as an integral part of our culture, we have embarked on a journey that leverages state-ofthe-art technologies and cuttingedge applications such as industry 4.0, AI, mobile platforms, GPS, data and analytics, which enable us to make informed decisions on a daily basis.
ACC’s recognition as an ‘Iconic Brand of India’ by The Economic Times and one of ‘India’s Most Trusted Cement Brands’ by TRA Research, attests to our dedication to customers and sustainable practices. Embracing digitalisation, inaugurating a modern Cement and Concrete R&D facility, and implementing advanced digital ecosystem position us as a digitally advanced cement manufacturer. With a nationwide network of channel partners, 20 cement manufacturing sites, over 86+ concrete plants, a world-class R&D centre, the quality of ACC’s products and services, as well as its commitment to technological development, make it a preferred brand in building materials.
By embracing technology as an integral part of our culture, we have embarked on a journey that leverages state-of-the-art technologies and cuttingedge applications such as industry 4.0, AI, mobile platforms, GPS, data and analytics, which enable us to make informed decisions on a daily basis.”
Responsibility Towards the Planet
Our purpose of building a better future involves confronting climate change. Investments in energysaving technologies, reduction of dust emissions, water-positive initiatives, and transitioning to green power showcase our commitment to sustainability. ACC is counted among the country’s ‘Most Sustainable Companies’ and is recognised for its best practices in environment management and corporate citizenship.
Our focus on developing lowcarbon products and sustainable solutions remains steadfast as we continue to grow our range with innovative products like ACC ECOMaxX, ACC AEROMaxX and ACC Coolcrete, offering a wide range of go-green options to our customers. Our role in providing durable green concrete for the Mumbai Coastal Road Project further exemplifies our dedication to innovation in the industry.
Our ambitious goal is to achieve net zero emissions by 2050, with our near-term targets endorsed by the Science Based Targets initiative (SBTi). This demonstrates our unwavering dedication to combat climate change and create a more sustainable future. ACC is the first Indian Cement Company to sign the Net Zero Pledge with Science Based Targets.
Embracing the principles of the circular economy, we actively embrace a diverse range of alternative fuels and raw materials, reducing our reliance on finite resources. This approach ensures sustainability and fosters innovation within our operations. Recognising the urgent need to combat deforestation and preserve our precious natural resources, the cement business has made a commitment to plant 8.3 million trees by 2030. This aligns with Adani Group’s ambitious plan to plant 100 million trees by 2030, illustrating our deep commitment to nurturing the environment for future generations.
Our efforts have garnered recognition from industry leaders, as we have been honoured as one of ‘India’s Top 50 Most Sustainable Companies’ across multiple industries by BW Businessworld. This recognition serves as a testament to our steadfast commitment to sustainable practices and responsible business operations.
Investing in People and Communities
Our business success thrives on shared achievements in a safe and inclusive workplace. Prioritising diversity, equity, and inclusion, we foster a culture of continuous learning and development. The Fulcrum programme focused on leadership development, and CSR initiatives across Education, Healthcare, Sustainable Livelihoods, Skill Development, and Community Infrastructure highlighting our commitment to people and communities.
Our efforts have garnered recognition from industry leaders, as we have been honoured as one of ‘India’s Top 50 Most Sustainable Companies’ across multiple industries by BW Businessworld. This recognition serves as a testament to our steadfast commitment to sustainable practices and responsible business operations.
Outlook
As the Indian economy enters a phase of robust growth, ACC remains steadfast in its commitment to core values of integrity, innovation, and sustainability. With our widespread manufacturing presence, diverse product portfolio, extensive distribution network, and commitment to sustainability, we are well-positioned to seize the emerging opportunities in the sector. We will continue to expand our capacities, invest in sustainable initiatives, and leave a positive impact on the planet for future generations.
I am incredibly proud of our team, whose passion and expertise continue to drive our growth and solidify our position as an industry leader. We hold an optimistic outlook for the future. The infrastructure development projects and government initiatives present significant avenues for growth. We will leverage our strengths, foster innovation, and explore new opportunities for expansion to achieve sustainable growth and deliver value to our stakeholders.
In conclusion, I would like to express deep gratitude to our shareholders, customers, business partners, and our dedicated employees for their unwavering support. Together, we will build upon our achievements and create a brighter and concrete future.
Regards,
Ajay Kapur
Chief Executive Officer