PERFORMANCE HIGHLIGHTS
Let me share the highlights of your Company’s performance in 2014
• Cement volumes up by 1.2%.
• Selling price of cement up by 4%
• Consolidated Sales up by 5.4%
• Operating costs up by 7.6% despite use of better fuel mix and AFR
• EBITDA dropped by 7%.
• Consolidated profit after tax up by 6.1%. There was a tax write back of
Rs 309 crore against Rs 217 crore in 2013.
DIVIDEND
I am pleased to inform you that the Board of Directors has recommended total
dividend of Rs 34/- per share. This includes interim dividend of Rs 15/- paid
in August 2014. The dividend paid last year was Rs 30/- per share.
PROJECTS
The new plant with a grinding unit at Jamul is expected to be completed this
year. In addition, a new grinding unit is also coming up at Sindri. This is part
of the Jamul Project and is expected to be completed by Q1, 2016.
READY MIXED CONCRETE
RMC business performed well during the year. The business focused on sale
of value added products and solutions. ACC Concrete has supplied RMC to
several landmark projects in the country.
COMMUNITY DEVELOPMENT
Our community development initiatives were focused mainly on health,
sanitation, education, livelihood and income generation. Our CSR activities are
generally around the communities near our Plants. The Company spent Rs
27.45 crore on CSR activities.
SUSTAINABLE DEVELOPMENT
Your Company is committed to ensure sustainable development. It has
significantly reduced thermal and electrical energy, cut CO2 emissions and
reduced water consumption. Waste processing platforms were commissioned
at Wadi and Kymore to increase the usage of Alternative fuels.
OUTLOOK
We see a modest but steady revival for the Indian economy in 2015. This will
have a positive impact on infrastructure, housing and construction sectors and
increase the demand for cement. The Company will continue to focus on cost
reduction, increasing the sale of premium products and other customer
excellence initiatives. This should deliver improved Company performance.
DIRECTORATE
Two stalwarts, Mr M L Narula and Mr Kuldip Kaura, retired from the Board of
Directors in 2014.
Mr M L Narula has been associated with ACC for over five decades. Joining as
a trainee engineer, Mr Narula rose to become the Managing Director of the
Company. He retired from the Company in 2007. He was thereafter appointed
as a director on the Board. Mr Narula has made a huge contribution to ACC
and its Board.
Mr Kuldip Kaura joined the Board in 2009 and was appointed CEO & MD in
2010. He retired in August 2014. His tenure was notable for the
Institutionalizing Excellence programme in the Company.