The cement industry in India comprises both small and large players, creating a highly competitive environment. With rapid capacity expansion and consolidation, the Company’s primary challenge is to maintain its market position in a rapidly-evolving industry.

To mitigate this risk, ACC's parent company Ambuja Cements Limited has devised an ambitious plan to reach a total capacity of 140 MTPA by FY 2027-28, thereby enhancing its market position across India. Additionally, the Company is actively working on strengthening its brand equity through innovation and digitalisation to remain competitive and profitable.

Regulatory changes are evolving rapidly across countries due to shifts in climate and environmental concerns. Non-compliance with new standards introduces significant complexity, potentially leading to reputational and financial repercussions. To address these challenges, the Company utilises transformation, upgradation and modification strategies, which can often come at a hefty cost.

The Company has undertaken various projects across its operations to control pollution and comply with the new emission standards for dust, SOx and NOx, as mandated by the Ministry of Environment, Forest and Climate Change (MoEF and CC). These initiatives aim to ensure adherence to environmental regulations and minimise impact on the surroundings.

The cement industry is both capital-intensive and energy- and raw-material-intensive, with energy and raw materials accounting for a significant portion of operating costs. This makes cost management and efficiency improvements crucial for the industry's sustainability and competitiveness.

ACC prioritises long-term supply agreements to ensure business continuity by optimising its fuel mix, enhancing plant efficiency, and increasing the use of alternative fuels such as WHRS and solar. Despite challenges arising from the MMDRA Act’s notification, which imposes lease renewals and grants through auctions, ACC secures adequate limestone resources and identifies suitable blocks for future acquisition to maintain efficient procurement of raw materials like coal, limestone and fly-ash.

Cyber security is of utmost importance within the organisation. ACC continuously identifies and blocks data leakages that pose a threat to its information systems. At the same time, plans are in place to establish a secure and monitored environment for the use of AI tools and solutions. As the digital landscape continues to evolve both nationally and globally, ACC fully embraces the need for the construction sector to adapt, driving the development of more efficient and effective solutions.

ACC operates in a secure environment and has implemented multiple advanced cybersecurity solutions. To further protect critical information systems, air-gapped cyber-safe backup procedures have been established to mitigate the impact of potential security breaches. All IT systems undergo regular upgrades and patching to ensure resilience against emerging threats. Cybersecurity policies and procedures are periodically updated, with ongoing user education to reinforce adherence and minimise risks. The Company’s digital transformation journey spans its entire digital landscape, integrating robust security measures across networks, cloud infrastructure, data centres, business applications and cybersecurity frameworks.

Health and safety is fundamental to the sustainability of ACC’s business, requiring a multidisciplinary approach and teamwork. It demands a high level of commitment from all stakeholders at every level of the organisation.

ACC places health and safety at the heart of its operations, continuously reviewing systems and processes to improve frontline safety. Initiatives such as Unchaai Kendra and Life Saving Safety Rules help raise awareness and prevent accidents, while regular risk assessments further support onsite and offsite efforts in ACC’s pursuit of ‘Zero Harm’.

Climate change presents various physical risks, including flooding, rising temperature and water stress. Additionally, emerging and potential regulations could introduce or amplify regulatory risks.

The Company is investing in renewable energy sources, energy efficiency initiatives and low-carbon technologies to reduce greenhouse gas emissions. These efforts are part of its commitment to sustainability and environmental responsibility.

The cement industry heavily depends on natural resources like limestone, coal and other minerals. Ensuring continuous supply of these vital materials while maintaining optimal cost and quality standards is crucial for smooth business operation.

To mitigate risks related to natural resources, ACC is enhancing its operational efficiency to optimise resource utilisation. The Company is also focusing on resource conservation, reuse and recycling, with initiatives for improving the clinker factor and thermal substitution rate, alongside investments in renewable energy and WHRS systems to reduce reliance on non-renewable sources. Additionally, ACC is investing in coal and limestone mines to ensure the availability of key raw materials, aiming to improve sustainability, minimise environmental impact and build a more resilient supply chain.

Energy security is vital for ACC, as it significantly impacts both operations and overall production costs. With energy expenses forming a substantial part of production costs, particularly during the energy-intensive processes of kilning and grinding, managing energy costs efficiently is crucial for the Company.

ACC recognises the importance of mitigating the risk of energy price inflation, and one key strategy is diversifying fuel sources, including the use of alternative fuels. This approach not only reduces the impact of fluctuating energy prices but also promotes sustainability, while the Company continually evaluates energy procurement options and implements innovative technologies to enhance energy efficiency and operational resilience, ensuring competitiveness in a dynamic cement industry.

Project execution is crucial to the Company's vision of reaching 140 MTPA by FY 2027-28, with large-scale projects already underway at multiple sites. Ensuring timely completion, maintaining the highest safety and quality standards and adhering to budgetary constraints are the top priorities for ACC's business.

The Company is leveraging synergies with the Adani Group’s project management arm, which brings proven expertise in executing large-scale projects. To mitigate budgetary concerns, the Company ensures a strong cash flow through internal accruals and is executing ongoing projects primarily via the EPC mode, partnering with world-renowned suppliers. Internal processes are being aligned with the goal of simplification, standardisation and skill enhancement, encapsulated in the Projects team's 5S mantra, to achieve maximum speed and scale.