sustainable development report 2007 - acc case study: life-saving assistance 40 8.8 csr strategy 41...

Strength. Performance. Passion.

Sustainable Development Report 2007

Its operations are spread throughout the country with 14modern cement factories having a total installed capacity of22.4 million tones of cement per annum, a string of 20 salesoffices and a countrywide distribution network of over 9,000dealers. It has a workforce of more than 10,000 persons. Asubsidiary company, ACC Concrete Limited, is a leadingmanufacturer of ready mix concrete that has 30 plants acrossthe country. Established in 1936 as a merger of ten cementcompanies, ACC is today closely associated with the HolcimGroup of Switzerland. Since inception, the company has been apioneer and trendsetter in cement and concrete, with a uniquetrack record of innovative research and product development. Itis an important benchmark for the cement industry in respect ofits production, marketing human resource management andother processes.

Pioneer and trend-setterThe brand name ACC is synonymous with cement and enjoys ahigh level of equity in the Indian market. The companymanufactures Portland cements for general construction such asOrdinary Portland Cement and Blended Cements including flyash and slag based cements.

In the 70 years of its existence, ACC has been a pioneer and atrend-setter responsible for many breakthroughs in themanufacture of cement and concrete. ACC was first in India tooffer distribution of cement in Bulk and Ready Mix Concrete,which has helped change the pace of large construction projectsin the country.

Protecting the environmentAmong the first companies in India to include commitment toenvironment protection as a corporate objective, ACC inductedthe use of pollution control equipment as early as 1966. Todayeach plant has sophisticated environment management systemsand state-of-the art pollution control equipment.

ACC plants, mines and townships visibly demonstrate successfulendeavours in quarry rehabilitation, water managementtechniques and ‘greening’ activities such as afforestation, treeplanting, horticulture, vegetable and cultivation apart fromlandscaping that helps beautify the environs. Better and cleanermining techniques have helped safeguard and conserve mineralresources.

ACC has achieved spectacular results in the utilization of twoindustrial wastes – namely slag from steel plants and fly ashfrom thermal power stations – to make blended cements thatoffer unique advantages to concrete. Today ACC offers totalsolutions for waste management including testing, suggestionsfor reuse, recycling and co-processing.

ACC – A Good Corporate CitizenACC‘s earliest initiatives in community development date back tothe 1940’s while its first formal Village Welfare Scheme waslaunched in 1952. The company undertakes a range of activitiesto improve living conditions of the under-privileged classes livingnear its plants. This includes education, healthcare, vocationalguidance and rural development.

ACC – India’s first name in cement

Company Profile

ACC Limited, or ACC as it is popularly known, is India’s foremost manufac-turer of cement. Formerly called The Associated Cement Companies Lim-ited, ACC’s corporate office is located in Mumbai.

Contents

1 Foreword - Statement of The Chairman and CEO 3

2 Milestones in Sustainable Development 4

3 Vision and Strategy 5

4 Corporate Governance 6

5 Organisation Structure 7

6 Economic Performance 8

6.1 Customer Relations 9

6.2 Supplier Relations 10

6.3 Economic Performance Data 11

6.4 Case study: ACC Help Centre 13

6.5 Case Study: Value-added Eco-friendly Products 14

7 Environmental Performance 15

7.1 Energy 16

7.2 Case Study: Energy Efficiency 17

7.3 Atmospheric Emissions Control 18

7.4 Case Study: Dust Control 19

7.5 Mineral Components & Blended Cements 20

7.6 Waste Management Services 21

7.7 Mining & Quarry Rehabilitation 23

7.8 Greening 25

7.9 Case Study: Plantations for Bio-mass 26

7.10 Water Management 27

7.11 Case Study: Waste Water Treatment 28

7.12 Towards Greener Technologies 29

8 Social Performance 30

8.1 Human Resources and Employment Practices 31

8.2 Training & Development 33

8.3 Knowledge and Skills Development 34

8.4 Occupational Health and Safety 35

8.5 Healthcare 37

8.6 Case study: HIV/AIDS 38

8.7 Case Study: Life-saving Assistance 40

8.8 CSR Strategy 41

8.9 CSR Organisation 42

8.10 Community Development 43

8.11 Community Needs Assessment 45

8.12 Expenditure on CSR 46

8.13 Stakeholder Engagement 47

8.14 Partnerships 49

9 Looking Ahead 50

10 Road Map for 2009 51

11 Methodology and GRI Content Index 52

12 Glossary 55

13 Awards & Accolades: 2006 & 2007 57

14 Views & Reviews 59

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ACC Sustainable Development Report 2007

ACC has a history of good governance with generations of distinguished leaders who haveguided the company in demonstrating a sincere concern for nature, the planet and itspeople. Our archives show that community development programmes were initiatedmore than sixty years ago, when the term corporate social responsibility was not yetcoined. ACC practiced environmental protection and pollution control, long beforepollution control norms and other regulatory laws came into existence.

The Company is deeply committed to uphold this great tradition. Sustainabledevelopment and corporate social responsibility find special place in our organizationstructure and form an intrinsic part of our business strategy. We believe in the TripleBottom Line theory and would like to assess our performance on the basis of thisframework. We aim to be recognized as a leading champion of sustainable developmentnot only in the cement industry but on a wider plane. We have charted a clear road mapfor this, comprising a host of comprehensive programmes with distinct milestones,adequate budgets and measurable targets. We are guided in this respect by theoutstanding practices of the Holcim Group who are recognized as leaders in sustainability.In the Global Cement Industry.

Occupational Health and Safety has come to occupy overriding priority. Our environmentmanagement systems and processes have been strengthened. Backed by a proactiveenvironment policy, we practice regular air quality monitoring, clean mining techniqueswith effective strategy for rehabilitation of used mines and an aggressive energyconservation programme. As part of the quest for renewable energy sources, thecompany’s first Wind Energy Farm was commissioned in Tamil Nadu to promote cleangreen energy. We have plans to explore other viable solutions for renewable non-fossilenergy.

An important contribution we are now making is in promoting new effective solutions fordealing with hazardous and non hazardous wastes from different industrial processes.We have ambitious plans for this function, guided by the success that the Holcim Grouphas already demonstrated.

In respect of community development, we are conducting detailed needs assessmentstudies in the villages around all our plants to help devise appropriate schemes that willvisibly improve the quality of life and environment in these communities. Special focus isgiven to promote self-reliance through capacity-building and sustainable livelihoods. Inthe process, we are seeking to forge more meaningful partnerships with governmentagencies, NGOs and social science consultants.

We are pleased to present our first Corporate Sustainable Development Report. It hasbeen compiled using the G3 guidelines of the Global Reporting Initiative. The exercise hashelped us identify not only our strengths in processes and expertise but also lacunae inquantitative and qualitative data and the need to formulate clear policies on differentaspects of sustainability. We intend to make this report a regular feature and will publishit once in two years. An updated version will be made available on our website every year.

Statement of Chairman and CEO

N S SekhsariaN S SekhsariaN S SekhsariaN S SekhsariaN S Sekhsaria

Sumit BanerjeeSumit BanerjeeSumit BanerjeeSumit BanerjeeSumit Banerjee

Foreword

N S SekhsariaN S SekhsariaN S SekhsariaN S SekhsariaN S SekhsariaChairman

Sumit BanerjeeSumit BanerjeeSumit BanerjeeSumit BanerjeeSumit BanerjeeManaging Director

June 5, 2008 - World Environment Day

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19361936193619361936 Incorporation of The Associated Cement Companies Limited on August 1, 1936

19441944194419441944 ACC’s first community development initiative near Bombay (now Mumbai)

19471947194719471947 ACC helps relocate employees during Partition of India – evacuating them to the new country of their choice

19471947194719471947 First entirely indigenous cement plant established at Chaibasa in Bihar (now Jharkhand)

19521952195219521952 Village Welfare Scheme launched

19551955195519551955 Sindri Cement Works uses waste calcium carbonate sludge from fertilizer factory at Sindri

19561956195619561956 Bulk Cement Depot established at Okhla, Delhi

19571957195719571957 Technical Training Institute established at Kymore, Madhya Pradesh

19611961196119611961 Blast furnace slag from TISCO used at Chaibasa Unit to produce Portland Slag Cement - first in India

19651965196519651965 ACC’s Central Research Station (CRS) established at Thane

19651965196519651965 Manufacture of Portland Pozzolana Cement

19681968196819681968 ACC supplied and commissioned one-million-tonne iron ore pelletising plant ordered by TISCO

19771977197719771977 ASSOCHAM National Award for outstanding performance in promoting rural and agricultural development

19781978197819781978 Introduction of energy efficient precalcinator technology for the first time in India

19821982198219821982 Commissioning of the first 1 Million tonnes per annum plant in the country at Wadi, Karnataka

19841984198419841984 Breakthrough in import substitution by developing a special G type of oil well cement to ONGC

19921992199219921992 Incorporation of Bulk Cement Corporation of India, a joint venture with the Government of India

19931993199319931993 ACC starts commercial manufacture of Ready Mix Concrete at Mumbai

19951995199519951995 ACC selected as Most Respected Company in India by Business India

20012001200120012001 Commissioning of New Wadi plant of capacity 2.6 MTPA, the largest in India

20022002200220022002 PHDCCI Good Corporate Citizen Award

20042004200420042004 GreenTech Safety Gold and Silver Awards awarded to Madukkarai and Katni Refractory

20052005200520052005 CFBP Jamnalal Bajaj Uchit Vyavahar Puraskar Certificate of Merit from Council For Fair Business Practices

20062006200620062006 ACC announces new Workplace policy for HIV/AIDS; establishes Anti Retroviral Treatment Centre at Wadi in Karnataka– the firstsuch project by private sector company in India

20062006200620062006 Good Corporate Citizen Award 2005-06 from Bombay Chamber of Commerce and Industry

20062006200620062006 Waste management services launched

20072007200720072007 Partnership with Christian Medical College for treatment of HIV/AIDS in Tamil Nadu

20072007200720072007 Sumant Moolgaokar Technical Institute completes 50 years

20072007200720072007 ACC commissions Wind energy farm in Tamil Nadu

2 Milestones in Sustainable Development

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3 Our Vision and Strategy

ACC’s Vision vividly declares the company’scommitment to community andsustainable development issues makingthis an essential part of the fiveinterdependent and intertwined businessgoals for the company. The essence of thisresolve is contained in the fifth goal or“diamond” which envisages that ACCinspires trust and respect.

The Vision statement narrates theseareas as� ACC is a trusted and ethical organization� ACC delivers enduring value to investors

and other stakeholders� ACC is committed to environment

protection and the well being of thecommunity

This statement is synonymous withbalancing the Triple Bottom Line - definedas the achievement of threeinterdependent and mutually reinforcinggoals of economic development, socialdevelopment and environmentalprotection.

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to review and evaluate the company’scompliance with its legal obligations, theadequacy of its relevant policies, controlsand regulatory requirements. In particularthe committee will advise the company onmatters pertaining to the Competition law.

ACC is a professionally managed Companywith an optimal mix of independentDirectors. The Board of Directors hasalways consisted of persons who areoutstanding professionals in theirrespective fields and with unquestionableintegrity and reputation. The role,responsibility and accountability of theBoard of Directors are clearly defined.

The Board of Directors has clearly statedstandards of corporate behaviour andendeavours to achieve the highest standardsof good governance through the adoption ofa strategic planning process, successionplanning for attracting and energizinghuman resources, identification andmanagement of major risks, an effectivecommunication policy and integrity ofCompany’s internal control systems. The

4 Corporate Governance

ACC’s organization structure was reviewedand reorganized into three autonomousregions with profit accountability anddecentralised decision-making. The newstructure also incorporated strongersupport functions at the corporate levelincluding some in new areas such ascorporate social responsibility andknowledge advancement.

ACC had systems in place for effectivestrategic planning and processes, riskmanagement, human resourcesdevelopment and succession planning,years before Corporate Governanceguidelines became applicable andmandatory for listed companies. The AuditCommittee in ACC was constituted as farback as in 1986; the Shareholders-Investors Grievance Committee wasformed in 1962 and the CompensationCommittee was convened in 1993. TheCompany’s core values are based onintegrity, respect for the law and strictcompliance thereof, emphasis on productquality and a caring spirit. A ComplianceCommittee has recently been constituted

Board is constantly looking at ways andmeans to ensure the most effective use offinancial resources and that managementand employees have the freedom to take theCompany forward within the framework ofeffective accountability.

The Annual Reports, press releases andother communication make fulldisclosures on various facets of importanceto stakeholders, particularly with regard toinformation relating to financial matters,operations and stock movements. TheManaging Director addresses a quarterlyletter to all shareholders apprising themwith an update on the Company’sachievements, progress and key concerns.

Annual general meetings of ACC areconducted at a fixed venue with the datesand agenda circulated well in advance.ACC’s annual report is an exhaustivedocument which is appreciated for its highlevel of disclosure and detail. A major partof the annual general meeting is dedicatedto shareholders who wish to voice opinionsor seek clarifications.

S&P ESG India IndeS&P ESG India IndeS&P ESG India IndeS&P ESG India IndeS&P ESG India Index : x : x : x : x : ACC is one of 50 companies included inthis index. In January 2008, the consortium of Standard & Poor’s,CRISIL and KLD Research & Analytics, mandated by theInternational Finance Corporation (IFC), announced the launch ofthe S&P ESG India Index, comprising 50 out of 500 leading Indiancompanies and ranked on the basis of their environmental, socialand corporate performance in terms of certain specified criteria.

The universe from which the S&P ESG India index constituentsare derived is the top 500 Indian companies, by total marketcapitalization listed on the National Stock Exchange of IndiaLimited. The index is meant to serve as a yardstick to assesscompanies whose business strategies and performancedemonstrate a high level of commitment to meetingenvironmental, social and governance (ESG) standards.

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ACC’s organization structure was revised in 2006. Added thrust was given to sustainable development with the creation of separate cellsat the corporate office and plants to coordinate activities relating to waste management, alternate fuels and raw materials, corporatesocial responsibility and occupational health and safety. All these were placed under the supervision of the Managing Director.

5 Organizational Structure

To enable better coordination of the organisation’s triple bottom line performance, it is proposed to constitute a high level team withrepresentatives from functions relating to the main pillars of sustainable development to coordinate reporting and align operations inline with the overall corporate objectives. The committee will include the heads of Environment & Energy Conservation, Alternate Fuelsand Raw Materials Business Development, Occupational Health & Safety, Corporate Communications & Social Responsibility, CorporateHuman Resources, Commercial Services, Central Procurement and Secretarial & Compliance.

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ACC Limited (formerly The AssociatedCement Companies Limited) is India’sforemost manufacturer of cement andready mix concrete with a countrywidenetwork of factories and marketing offices.ACC’s brand name enjoys a high level ofequity in the Indian market.

The company’s distribution network is thelargest in the country, with dealers andcustomers in every state. ACC is a people’sbrand of cement, with over 80 % of salesmade through its extensive dealernetwork. ACC’s customer base representsthe masses of India - individual homebuilders in small towns and rural areas.The range and quality of customer serviceshas been increased appreciably in the lastfour years. A large team of qualified civilengineers who man Customer Service Cellsat the sales offices have regular

6 Economic Performance

interactions with customers, engineers,masons and influencers in promoting goodconstruction practices.

In the last few years, the company divestedall of its non-core businesses and is nowfocused on the business of cement. Thecompany seeks to retain a leadershipposition in the cement industry and as onethat meets world-class norms. Continuousefforts are made to keep technologicallyabreast in order to ensure that higherlevels of quality, productivity and costefficiency can be attained. ACC is animportant benchmark for the cementindustry in India in production,distribution, marketing and othermanagement practices.

The company’s operations are aligned tomaximize shareholders value. Profitability

has increased appreciably in the last fiveyears. Leadership in cement requires newprojects for capacity expansion to be takenup at regular intervals. Organic growth ispreferred as it is faster and enables overalleconomies of scale. ACC is currentlyimplementing expansion projects that willraise its cement capacity from 22.40million tonnes in December 2007 to 30.40million tonnes by the close of 2010.

The Indian cement industry experienceshigh degrees of competition. Affordableenergy and logistics are importantchallenges. This necessitates a relentlesspursuit of innovative measures to enhanceoverall efficiency, productivity andcompetitiveness especially in respect ofcost leadership which helps assure ourcustomers the best terms of price, quality,productivity, service and availability.

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ACC is India’s largest manufacturer ofcement. ACC Cement has an image ofbeing dependable, consistent and of highquality backed by in-house research andexpertise. The company’s distributionnetwork has the widest spread of dealersand customers in every state of thecountry. Though it has catered to some ofIndia’s most admired infrastructureprojects, ACC is essentially a people’s brandof cement. Today nearly 85 per cent ofsales is made through the extensive dealerand retailer network to a large customerbase representing the masses of India -individual home builders in small towns,rural and semi-urban India.

ACC has been a trend-setter in themanufacture and promotion of blendedcements namely, portland pozzolana andportland slag cements which use materialsthat are otherwise industrial wastes andpollutants. ACC is the largestmanufacturer of Blended Cements in thecountry. These are positioned as premiumproducts highlighting their specialproperties and their eco-friendliness.

The level of customer services has beenappreciably increased through theexpansion of our sales network and salesforce. Customer Service Cells at each of ourregional marketing offices are manned bya team of qualified civil engineers whointeract with consumers, engineers,masons and influencers to understandtheir requirements, attend to theircomplaints and provide pre and post salesservices including guidance on the correctusage of cement and concrete anddemonstrating good constructionpractices.

The company has a regular practice ofinteracting with customers and end-users

6.1 Customer Relations

as well as members of our distributionchannels such as dealers, sub-dealers andretailers. Through these interactions webuild relationships and seek to educatethem about cement, common complaintsand pit-falls in usage and other aspects ofconstruction. Market surveys are organizedat regular intervals to ascertainperceptions about our brand image,marketing and distribution procedures, oursales force, channel management andrelationships with customers, dealers andinfluencers. A brand equity study carriedout by a well-known market research firmof global repute indicated that ACC is themost preferred and recommended brandof cement in India. The brand stood wayahead of all other competitors in thiscomparative analysis.

In the last few years, a host of newcustomer services were introduced toassist customers in selected cities andtowns. These include site visits forinspection and guidance, testing and aidesfor customers. Most were devised forindividual home builders who constitute alarge group of our end-users. A uniquenew service was the establishment of ACCHelp Centres in several cities to providebasic information and guidance to

customers on various home building-related procedures. An interactive websitewas launched primarily for the benefit ofsmall retail consumers and home builders.The site provides online inputs on a host ofuseful topics related to home building andis proving to be quite popular. The websitewww.askacc.com is visited by about10,000 persons from different parts of thecountry.

Customer service personnel are responsibleto attend to customer complaints. There is aformal system in place for handlingcustomer complaints at all sales offices.These systems and documentation areregularly inspected by representatives ofthe Bureau of Indian Standards. Theregional head is personally responsible toresolve individual complaints to their justand logical end. Commercial complaints areresolved at the local level while complaintsrelated to application failures and qualityare promptly referred to the head andquality in charge at the supplying cementplant as well as to the quality departmentat the corporate office. On receipt of acomplaint, our representatives visit thecomplainant’s site at the earliest and, iffound necessary, samples are drawn fortesting at the company’s own laboratory.

The cThe cThe cThe cThe companompanompanompanompany is known to pry is known to pry is known to pry is known to pry is known to promote ethical and fomote ethical and fomote ethical and fomote ethical and fomote ethical and fairairairairair

prprprprpracacacacactices in its supply chaintices in its supply chaintices in its supply chaintices in its supply chaintices in its supply chain. The company’s commercialterms, procedures are professional and transparent. ACC ispopular with its customers and suppliers. Our marketing andsales practices envisage the promotion and encouragement

of all dealers including small traders and retailers,particularly those in interior places. In addition, thecompany fosters a tremendous sense of belonging not onlyamong employees, but also among its customers, dealersand associates.

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ACC’s countrywide spread of cementplants consumes a wide spectrum ofinputs – about 130,000 different itemsranging from coal, gypsum, slag, packagingbags, refractory products, steel, grindingmedia, lubricants, electrodes, cables,bearings, conveyor belts, spares of variousmechanical, electrical and miningequipment, explosives andinstrumentation. A team of professionalsat Corporate, Region and Plant Levelmanages the procurement function. Thefunction is organized so as to derivemaximum value for the company througheconomies of scale from central poolingand procurement of some inputs at thecorporate level while meeting individualoperational requirements at plant level.

Procurement Organisation: The materialsmanagement and purchase processeswere reorganized in 2006 as the company’snew Procurement function. The functionunderwent further change afterimplementation of an SAP basedEnterprise Resource Planning (ERP) system.The Procurement function now comprisesa Central Procurement team at thecorporate office for the requirements ofmajor inputs for the operation of cementplants. Central procurement is divided intothe following major groups:� Raw materials� Energy, Fuels and Gases� Maintenance spares� Wearing parts, Consumable materials� Administrative & office supplies� Services� Packing

The structure provides for procurementmanagers at regional level and plants.There is a separate projects head forprocurement of capital equipment andpurchases.

6.2 Supplier Relations

Code of Conduct: Adequate care is takento ensure transparency in procurementprocesses. A new policy was adopted in2007 which has a clearly defined code ofpractice for procurement conduct aimedat setting the norms of behaviourgoverning employees involved in variousactivities of procurement. The policyenshrines the practice of fair competitionand forbids interference with opencompetition in markets. Vendors areassured equal access to non-confidentialinformation. The policy calls for clearcriteria to be communicated to vendorssuch that the process generates equalexpectations from comparable vendorstowards providing the best acceptablesolution for both parties. There areprovisions for avoiding conflicts ofinterest and misconduct such as briberyand corruption.

Procurement Manual: The procurementmanual describes the processes andsequential and procedures to be followedin procurement including vendorregistration and appraisal, indenting andtendering. There are detailed guidelinesfor negotiation, order acceptance, orderprocessing and execution and payment.

Vendor Management: The vendor base ismore than 19000 suppliers across thecountry, comprising reputedmanufacturers, usually the leading namesof their particular industry segment whoare technically and financially sound andhave the intrinsic capacity to supplymaterial of desired quality on time.Preference is given to applicants with ISO(Quality & Environmental) certification.About half of the registered vendors whorepresent about 10 per cent of totalpurchase volume have been individuallyassessed based on quality standards.

The new vendor registration systemincorporates details of environmentperformance, social responsibilityinitiatives and employment practicesimplemented by the vendorapplicants, but these parameters havenot been formally inducted forevaluation and selection. There areplans to widen the scope of thevendor registration and evaluationsystem to incorporate specific pre-qualification criteria relating toenvironment performance.

Care is taken to ascertain that vendorsand contractors, who operate withinthe company’s premises, observe andconform to fair labour practices. Theengagement of children andadolescent labour is not permitted.

There is no specific policy forpreferring local suppliers. In 2007 asmany as 70 per cent of our supplierswere regionally based and theysupplied 30 per cent of total purchasevolume.

We have detailed guidelines forvendor appraisal, registration,approval, rating and de-listing.Periodical evaluation and assessmentis recommended on a random basis.

Outlook: We expect the procurementof energy and fuel to pose increasingchallenges. In particular, the outlookfor coal is critical. The share of coalsupplies based on official linkages isdeclining and in 2007 the companyhad to source more than a third of itsrequirement from the open marketand imports, at significantly highercost.

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CCCCCemenemenemenemenementtttt Business – P Business – P Business – P Business – P Business – Perererererffffformance Aormance Aormance Aormance Aormance Attttt A Glance A Glance A Glance A Glance A Glance

20072007200720072007 20062006200620062006 Change %Change %Change %Change %Change %

Production - Million Tonnes 19.92 18.73 6.40%

Sales volume - Million Tonnes* 19.97 18.83 6.10%

Sales value - Rs. Million** 66399 55037 20.60%

EBITDA % 31% 32%

* Cement sales volume includes sale to RMX and Trading Sales** Sales value as per cement segment / activity (includes trading)

6.3 Economic Performance

OperOperOperOperOperaaaaational Ptional Ptional Ptional Ptional Perererererffffformanceormanceormanceormanceormance

20072007200720072007 20062006200620062006

Blended cement - % 90 87

Fuel consumption (Kcal/Kg of clinker) 752 736

Power consumption (process) Kwh/T 89 88

Manhours per tonne of cement 1.14 1.36

Dividend: Dividend: Dividend: Dividend: Dividend: Total dividend for the year 2007 was Rs 20 per share (200% on the par value ofRs 10) as against Rs 15 per equity share for the year ended December 31, 2006.Total dividend outgo for fiscal 2007 was Rs 4387.6 million including dividend distributiontax of Rs 637.4 million as against Rs 3203.2 million including dividend distribution tax ofRs 394 million in the previous year.

ACC has registered consistent improvement in its financial and overall economicperformance. ACC was identified by Standard & Poor’s, the world’s leading index provider,as one of eight Indian companies in the S&P Global Challengers Class of 2007 which areexpected to emerge as Challengers to the World’s Leading blue-chip companies. The listwas based on companies that exhibited the strongest internal and external growthcharacteristics.

SegmenSegmenSegmenSegmenSegmenttttt wise R wise R wise R wise R wise Reeeeevvvvvenue, Renue, Renue, Renue, Renue, Results and Cesults and Cesults and Cesults and Cesults and Capital Emploapital Emploapital Emploapital Emploapital Employyyyyed (Aed (Aed (Aed (Aed (Audited Rs in Million)udited Rs in Million)udited Rs in Million)udited Rs in Million)udited Rs in Million)

CCCCConsolidaonsolidaonsolidaonsolidaonsolidatetetetete

SegmenSegmenSegmenSegmenSegmenttttt R R R R Reeeeevvvvvenue (netenue (netenue (netenue (netenue (net sale / inc sale / inc sale / inc sale / inc sale / income frome frome frome frome from each segmenom each segmenom each segmenom each segmenom each segment)t)t)t)t) 20072007200720072007 20062006200620062006

PPPPParararararticularsticularsticularsticularsticulars AAAAAUUUUUDITDITDITDITDITEDEDEDEDED AAAAAUUUUUDITDITDITDITDITEDEDEDEDED

Rs.Rs.Rs.Rs.Rs. Rs.Rs.Rs.Rs.Rs.

a Cement 67504 56150

b Ready Mix Concrete 3670 3004

c Others 603 844

d Unallocated 2 4

Total 71779 60002

Less: Inter segment revenue 1104 1490

Net sales / income from operations 70675 58512

* from consolidated segment information

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FFFFFinancial Highlighinancial Highlighinancial Highlighinancial Highlighinancial Highlightststststs

20072007200720072007 20062006200620062006

Rs. MillionsRs. MillionsRs. MillionsRs. MillionsRs. Millions Rs. MillionsRs. MillionsRs. MillionsRs. MillionsRs. Millions

Gross Revenue 79,771 65,947

Profit / (Loss) before tax and exceptional items 17,172 14,586

Exceptional Items 2,131 1,609

Profit / (Loss) after tax and exceptional items 14,386 12,318

Dividend (includes Dividend Tax - Rs. 637.4 4,389 3,220Million-Previous Year - Rs. 394 Million)

Capital Employed 49,533 43,787

Net Worth 41,527 31,420

Borrowings 4,691 9,160

Debt : Equity Ratio 0.11 0.29

Book Value per Share at year end Rs. 221.33 Rs. 167.77

Basic Earnings per Share Rs. 76.75 Rs. 66.02

Dividend per share Rs. 20.00 Rs. 15.00

Employee (Numbers) 10,032 9,231

Shareholder (Numbers) 1,27,476 1,10,455

* figures for 2005 pertain to the nine months

period April 2005-December 2005

# Manhours per tonne of cement as per Holcim

Methodology

PrPrPrPrProducoducoducoducoduction and Sales Highlightion and Sales Highlightion and Sales Highlightion and Sales Highlightion and Sales Highlightststststs

20072007200720072007 20062006200620062006

Cement Production m.tonnes 19.92 18.73

Cement despatch (by packing) m.tonnes 19.88 18.71

Bagged % 97.9 98.1

Bulk Cement % 2.1 1.9

Cement despatch (by Category)

Trade sales % 83.8 81.8

Non-trade sales % 16.2 18.2

Cement despatch (by type)

Ordinary Portland Cement % 9.8 12.7

Portland Slag Cement % 19.7 19.9

Portland Pozzolana Cement % 70.5 67.4

Cement Despatches (by mode)

by Rail % 51 48

by Road % 49 52

ACC’s Market Share % 12.2 12.3

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First launched in Bangalore, the ACC HelpCentre was created as a customer serviceinitiative and comprises a place to impartknowledge and expertise required to assistindividual homebuilders understand andmanage the entire process of homebuilding in a professional and unbiasedenvironment. The first of its kind in Indiato target individual home-builders in thisway, the center addresses the anxieties ofhome builders at all stages of planningand construction and provide the “expert”inputs needed for successful completion ofthe home building process.

Tutorials, conveniently scheduled in theevenings, guide the home builder,through all the relevant steps of houseconstruction process - from pre-construction worries on stamp duty,selection of architects and appropriateservice providers to estimating budgets.Steps from purchasing land, budgeting tochoice of material and planning of theconstruction process are elaborated, step-

6.4 Case Study: ACC Help Center

A model to achieve service excellence in the cement Industry

by-step. Specially designed booklets oneach stage of building one’s “DreamHouse” are made available at thesecentres at a nominal price. Films andeducational literature designed formasons and students and technicalbooks/booklets on cement, concrete andbuilding construction, and maintenanceare also available on request. The centerstracks relevant data of aspiring homebuilders and proactively engages with

them in a dialogue. Valuable feedback isobtained from each visitor.

ACC launched the first Help Centre in Nov2003 in Bangalore. Today there are 17 ofthem in the country. Average customerfootfalls at each center has increasedfrom 50 per month to a national averageof 275 per month. More than 10000satisfied customers have been createdthrough this initiative.

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6.5 Case Study: Value-added Eco-friendly Products

ACC’s pioneering efforts in introducing twovalue added products - Bulk cement andReady Mix Concrete have been responsiblefor redefining the pace and quality ofconstruction activity in India’smetropolitan cities and in megainfrastructure projects.

Bulk CBulk CBulk CBulk CBulk CemenemenemenemenementttttACC introduced Bulk cement to India in1956 as an alternative to bagged cement,which has proved to be of particularadvantage to large consumers of cement.In India, more than 95 per cent of cementconsumed is purchased in 50 kilogrambags while in developed nations more than90 percent cement is transported and soldin bulk.

ACC offers bulk cement through itssubsidiary company, Bulk CementCorporation of India (BCCI) situated atKalamboli, in Navi Mumbai. BCCI caters tobulk cement requirements of the city ofMumbai and its environs. It has twocement storage silos with a capacity of5,000 tonnes each. The plant receivescement in bulk from ACC plant at Wadiand has its own special purpose railwaywagons and rakes and its own railway

siding. The first of its kind in India, BCCI isequipped with all the facilities required byincreasingly sophisticated constructionsites in a bustling metropolis, including alaboratory, a fleet of specialized trucks andsite silos for the convenience of customers.

Bulk cement has several advantages ascompared to bagged cement. Mechanizedhandling, loading and unloading ofcement reduces manual intervention tothe barest minimum. At site, the cement ispumped into portable 15-ton steel silosoffered by ACC. Dust collecting silossafeguard against dust pollution. Since it isstored in a sealed space, the quality andquantity of cement is assured. It is tamper-proof, cost-efficient and eco-friendly.

RRRRReadyeadyeadyeadyeady-Mix C-Mix C-Mix C-Mix C-Mix ConcroncroncroncroncreteeteeteeteeteACC established India’s first commercialReady-Mix Concrete (RMX) in Mumbai.From January 2008 this business has beenreorganized as a separate wholly ownedsubsidiary company called ACC ConcreteLimited. It is one of the largestmanufacturers of RMX in India with 30modern plants in major cities such asMumbai, Bangalore, Kolkata, Chennai,Delhi, Hyderabad, Goa, Pune and

Ahmedabad.

RMX is concrete that is specificallymanufactured for delivery to thecustomer’s construction site in a freshlymixed and plastic or unhardened state.RMX Concrete is sold by volume - usuallyexpressed in cubic meters. RMX can becustom-made to suit differentapplications. ACC Concrete is supplied in avariety of grades and compositions tomeet customized applications. ACC hassupplied ready mixed concrete to manyprestige projects in Mumbai and othercities including the Mumbai-Puneexpressway and the Delhi Metro railproject. The JJ flyover in Mumbai was thefirst mega construction project in India touse High Performance Concrete of M-75grade.

RMX assures its customers numerousbenefits including consistent and assuredquality of concrete, flexibility in concretedesign mixes, smaller inventories, materialhandling and storage of raw materials atsites. The use of RMX is an environmentalfriendly practice that ensures a cleanerwork place and causes minimaldisturbance to its surroundings.

1414141414

With rampant energy shortages in India,ACC is engaged in making regularmodifications in process and technology toadapt to best practices in energy savingson the usage of conventional energy andfuel sources. Efforts are on to seek viablerenewable energy and non-fossil fuelsources. The Company made its first forayinto Wind energy in 2007.

ACC was first in the country to utilizewaste by-products from other industriesand deploy them gainfully to manufacturecement. These included blast furnace slagand calcium carbonate sludge from steeland fertilizer industries. The Company ledthe promotion of Fly ash based cement,which used fly ash, generated as a wastepollutant in thermal power industries.These efforts played an important role inredefining what were once wastepollutants into raw materials compatiblefor the manufacture of cement.

The Company’s Alternate Fuel and RawMaterials (AFR) business was established in2005 with fuel risk abatement as its primeobjective. The department actively

7 Environmental Performance

ACC has been a trendsetter in theindustry in respect of its environmentprotection practices. There is evidence toshow that quarry rehabilitation, treeplantation, afforestation, watermanagement, pollution control andutilization of wastes were practiced manydecades ago.

The Company installed pollution controlequipment in its cement plants morethan forty years ago. Today each of ourplants has state-of-the art pollutioncontrol systems designed by the in-housepollution control equipment design team.These systems are capable of keepingemissions well below the statutory levels.All our plants conform to ISO 14001Certification.

The environment managementorganization has been strengthened atthe corporate as well as plant level. TheEnvironment and Energy ConservationCell was formed in September 2007 witha clear road map to pursue emission andenergy reduction. Earlier these functionswere organised differently. Many projectsare under implementation to controlfugitive emissions and particulateemissions. A large group of 70environment engineers are deployedacross the Company with separate teamsfor environment related R&D, design andinstallation of equipment at the centrallevel and separate engineers overseeingmaintenance and operation at each plant.

promotes the use of alternate fuel and rawmaterials to reduce dependence onconventional fossil fuels and help in mineralresource conservation. The AFR businessoffers comprehensive waste managementservices based on the principle of co-processing the waste in cement kilns. A fullfledged research laboratory has been set upfor the purpose. Large plantations ofJatropha, Castor and Subabul trees arebeing laid on barren and wastelands atmost of our plants for bio-mass generationto serve as replacement fuel.

Our other environmental initiativesinclude conservation of natural resourceslike limestone through cleaner miningoperations, quarry rehabilitation, watermanagement and green belt development.

There are regular training and awarenessgeneration programmes on EnvironmentManagement, Equipment Operations &Maintenance, Occupational Health &Safety and Waste Management. WorldEnvironment Day, Mines Environment &Mines Safety Week are observed withdedication.

Details of rDetails of rDetails of rDetails of rDetails of raw maaw maaw maaw maaw materials cterials cterials cterials cterials consumedonsumedonsumedonsumedonsumed

RRRRRaw maaw maaw maaw maaw materialterialterialterialterial UnitUnitUnitUnitUnit 20072007200720072007 20062006200620062006

QuanQuanQuanQuanQuantitytitytitytitytity QuanQuanQuanQuanQuantitytitytitytitytity

Slag Million Tonnes 1.858 1.751

Gypsum Million Tonnes 1.075 0.982

Fly Ash Million Tonnes 3.538 2.992

1515151515

Cement manufacture is an energyintensive process consuming bothelectrical and thermal energies. Energyconstitutes about 15% of our costs. In2007, we purchased 31% of our electricityrequirement while as much as 69% wasproduced through captive power plants.The company has 225 MW of captivepower generating capacity of which 184MW is thermal while the remaining ismainly liquid fuel based. There are projectsunder implantation to install 130 MW ofthermal based captive power generationcapacity.

The global warming challenge is of deepand immediate concern. ACC hasconstituted a renewable energy divisionwithin its Power Management Group. Itsfirst major initiative was to establish astate-of-the-art wind power project inTamil Nadu to provide an environmentallysustainable energy input to ourMadukkarai Plant. The wind farm,

7.1 Energy

commissioned in late 2007, has alreadygenerated about 12 million units of greencarbon free energy. The Company isexploring other viable opportunities forwind power and has received approval fora wind power project in Rajasthan.

Going forward, the Company aims topursue other sources of non-conventional green energy such as windpower, waste heat recovery, solar PVenergy, solar thermal energy and minihydel power and build them assustainable business models through theClean Development Mechanism. Thus in

states where wind farm availability islimited, we are looking at sourcingpossibilities from hydel power projects.We have waste heat recovery projectsunder examination in our Gagal plant inHimachal Pradesh and Kymore Plant inMadhya Pradesh.

We now have a policy of using renewableenergy to a specified extent at all our newlybuilt environments such as office buildings,control rooms and residential colonies.Cement House which houses the corporateoffice in Mumbai is undergoing refurbishmentto make it an energy efficient building.

1616161616

EnerEnerEnerEnerEnergggggy Cy Cy Cy Cy Consumptiononsumptiononsumptiononsumptiononsumption

20072007200720072007 20062006200620062006

Fuel Consumption (million Tonnes / annum for Cement Production) 2.40 2.57

Coal for onsite power generation (million Tonnes / annum) 1.49 1.38

Process Power consumption ( KWH/ tonne of Cementitious material) 89 88

Total Power Consumption (KWH/tonne of Cementitious material) 94.71 96.26including Colony

Specific thermal energy consumption (GJ/tonne of Clinker) 3.14 3.07

grind limestone from separatorrejects

� Conversion of screw feeding systemto belt feeding system.

3.3.3.3.3. PrPrPrPrProcessocessocessocessocess - Major process changes werecarried out at Chaibasa and Lakheriplants from wet to dry process and atMadukkarai from wet to semi-dryprocess. This has resulted in substantialreduction in thermal energyconsumption with a marginal increase inelectrical energy consumption.

4.4.4.4.4. Kiln SecKiln SecKiln SecKiln SecKiln Sectiontiontiontiontion� Improvement of Kiln Burners at

Gagal, Bargarh and Lakheri plants.� Installation of high efficiency seals at

discharge end of Kilns at Lakheri,Chanda and Bargarh.

� Increased utilization of alternatefuels at Lakheri, Gagal andMadukkarai

� Addition of new pre-heater stream atLakheri and Gagal

� Addition of pre-heater stage at Gagaland Jamul

5.5.5.5.5. CCCCCemenemenemenemenementtttt Mills Mills Mills Mills Mills

7.2 Case Study: Energy Efficiency

Several initiatives and projects have beenimplemented to optimize the performanceof various equipment so as to achieveoptimum utilization of electrical andthermal energy. This has helped in reducingpower consumption of all ACC Plantsincluding colony power consumption. Theaverage specific energy consumption hasreduced from 113 KWH/tonne to 94.71KWH/ tonne of cementitous material in thelast 7 years.

SalienSalienSalienSalienSalienttttt initia initia initia initia initiativtivtivtivtives ares ares ares ares are listed belowe listed belowe listed belowe listed belowe listed below:

1.1.1.1.1. MinesMinesMinesMinesMines & CrusherCrusherCrusherCrusherCrusher – Improving theefficiency of dewatering Pumps atKymore mines and the installation oftertiary crusher at Kymore, and Chanda.Installation of secondary and tertiarycrusher at Gagal.

2.2.2.2.2. VRM SecVRM SecVRM SecVRM SecVRM Sectiontiontiontiontion – – – – – The output of thevertical roller mill (VRM) at Gagal wasincreased from design levels of 220 TPHto 360 TPH in a phased manner by� Change in separator from Polysius to

LNV separator� Increase in VRM gear Box speed from

24 RPM to 27 RPM� Installation of Hybrid ball mill to

� Installation of pre-grinders forcement mills at Gagal, Chanda &Tikaria

� Improvement in mill output bymodified liners and close circuitingof Mills at Chaibasa, Chanda, Sindri.

� Replacement of pneumaticconveying system by mechanicalconveyor at Madukkarai, Chanda,Tikaria, Jamul and Gagal.

� Grinding media patternoptimization at Tikaria.

� Increased fineness of VRM productby reducing Mogen Sensizer finerscreen at Tikaria.

� Installation of new cement mills ofhigher capacity at Gagal, Kymore,Lakheri and Chaibasa

6.6.6.6.6. CCCCCooleroolerooleroolerooler - Improving grate coolerperformance at Bargarh, Chaibasa,Lakheri and Kymore Kiln andinstallation of new grate cooler at Gagal

7.7.7.7.7. PPPPPacking Planacking Planacking Planacking Planacking Planttttt - - - - - New packers installedat Sindri, Wadi and Gagal.

8.8.8.8.8. CCCCCoal Mill - oal Mill - oal Mill - oal Mill - oal Mill - Replacement of coal mill gritseparators with dynamic separators atChanda and Jamul.

1717171717

AAAAAtmospheric Emissionstmospheric Emissionstmospheric Emissionstmospheric Emissionstmospheric EmissionsAverage specific concentration(g/tonne of cementitious material)

PPPPParararararameterameterameterameterameter 20072007200720072007 20062006200620062006

NOX

929.51 Not measured

SO2

105.06 Not measured

NH3

1.50 Not measured

Dust 95.12 115.55

Organics 6.53 Not measured

Mercury 0.02 Not measured

Chromium 0.02 Not measured

Dioxins / furans (ngTEQ/Nm3) 0.003-0.015 Not measured

Note: Note: Note: Note: Note: In India load based standards i.e. g/tonne of cementitious material are still underdevelopment, hence there are no standard values for comparison.

CCCCCOOOOO22222 Emission (Including on-site pow Emission (Including on-site pow Emission (Including on-site pow Emission (Including on-site pow Emission (Including on-site power generer generer generer generer generaaaaation)tion)tion)tion)tion)

20072007200720072007 20062006200620062006 20052005200520052005 19901990199019901990

Absolute gross emissions Million Tonnes CO2

13.56 12.80 12.20 5.76

Absolute net emissions Million Tonnes CO2

13.56 12.80 12.20 5.76

Specific gross emissions Kg CO2 / Tonne Cementitious 681 680.00 704 854

materials

Specific net emissions Kg CO2 / Tonne Cementitious 681 680.00 704 854

materials

CCCCCOOOOO22222 Emission (E Emission (E Emission (E Emission (E Emission (Exxxxxcluding on-site powcluding on-site powcluding on-site powcluding on-site powcluding on-site power generer generer generer generer generaaaaation)tion)tion)tion)tion)

20072007200720072007 20062006200620062006 20052005200520052005 19901990199019901990

Absolute gross emissions Million Tonnes CO2

11.57 10.99 10.4 5.32

Absolute net emissions Million Tonnes CO2 11.57 10.99 10.4 5.32

Specific gross emissions Kg CO2 / Tonne Cementitious 581.00 584.00 586 772materials

Specific net emissions Kg CO2 / Tonne Cementitious 581.00 584.00 586 772

materials

Sophisticated pollution control equipmentand devices and a well equippedenvironmental laboratory provided at eachplant help in the monitoring andmeasurement of environmentalparameters. All our plants are certifiedwith EMS (Environment ManagementSystem) – ISO 14001:2004. Internal audits,surveillance audits and reviews are carriedout regularly.

Baseline MonitoringBaseline MonitoringBaseline MonitoringBaseline MonitoringBaseline MonitoringACC is making substantial investments tomonitor and measure the environmentalperformance of its plants in terms ofemissions termed as baseline monitoring.The result of this monitoring providesemission values using conventional fueland acts as a reference for evaluating theincremental change in emission from theusage of alternate fuels. The activity willalso serve to demonstrate to our stakeholders the changes in the emissionbehaviour of the kiln system on account ofthe usage of AFR.

So far we have conducted base linemonitoring in four plants using theservices of SGS India, a third party agencycertified by the Central Pollution ControlBoard. Emission parameters that weremeasured in this exercise are dust, SO2,HCl, NH3, H2O, CO, O2, Benzene, Mercury,Heavy Metals (Sb, As, Cd, Cr, Co, Cu, Pb, Mn,Ni, Tl, V); Dioxins / Furans (PCDD / PCDF)and Total Organic Compounds.

CCCCCononononontinuous Emission Monitoringtinuous Emission Monitoringtinuous Emission Monitoringtinuous Emission Monitoringtinuous Emission Monitoring

SSSSSystemsystemsystemsystemsystemsContinuous Emission Monitoring System(CEMS) are being installed at all our plantsin a phased manner to facilitatecontinuous monitoring of emissions andensure environment compliance withinthe standards. These systems would alsoallow online monitoring of the associatedemissions from co-processing wastes andindicate whether each type of industrialwaste used is viable and environmentfriendly material. The first CEMS isexpected to be operational in 2008.

7.3 Atmospheric Emissions Control

MonMonMonMonMonthly Cthly Cthly Cthly Cthly COOOOO22222 R R R R ReporeporeporeporeportingtingtingtingtingCement industry is among the majoremitters of greenhouse gases.Acknowledging this fact, ACC has startedreporting the CO

2 emissions from clinker

and cement production activities. GrossCO

2 emissions and Net CO

2 emissions is

calculated for the company as a wholeusing data provided by each individualcement plant. The calculation principles

and guidelines are based on the CementCO

2 Protocol developed by the Cement

Sustainability Initiative (CSI) of the WorldBusiness Council for SustainableDevelopment (WBCSD). Absolute GrossCO

2 Emissions, Absolute Net CO

2

Emissions, Specific Gross CO2 Emissions

and Specific Net CO2 Emissions are also

calculated for the entire Company.

1818181818

ACC has a mix of cement plants that hasmodern plants as well as those using oldertechnology namely wet, semi dry, long drykilns and four stage suspension preheaterkilns. Over time, when changes took placein cement manufacturing technology,plant and equipment capacities wereprogressively upgraded. Most of the dustemission control equipment which wereinstalled in the early 1980’s to achieveoutlet emissions of 150 to 250 mg./Nm3

became inadequate to handle higher plantcapacity and lower emission standards.This necessitated upgradation of the oldpollution control equipment, which wasnot a simple task. Plant layouts posed aconstraint in some cases while there werefew if any reliable pollution controlequipment suppliers willing to take upsuch complex retrofit projects.

ACC then decided to set up its own facilityfor retrofitting and up gradation of thisequipment in 1993 at its Thane complex incollaboration with Hamon ResearchCottrell, USA. This included a full fledgedfluid dynamics laboratory, the first in theIndian cement industry, for carrying outphysical gas flow model studies fordifferent equipment. Over the years, mostof the equipment were continuouslyupgraded to meet local statutory emissionnorms. Apart from upgrading andinstalling pollution control equipment forACC, the division also took up consultancy,supply and erection jobs for clients fromvarious industries in India and overseas. Infact ACC gained significant recognition forexcellent services rendered. This activityhad to be curtailed to cater to increasedrequirement of retrofitting and supply ofpollution control equipment to thecompany’s own plants which wereundergoing expansion.

As part of the plan to meet stringentemission standards, the company decidedto convert 2 to 3 stage field Electrostaticprecipitators (ESP) to Bag Houses whichare more efficient in dust control thanESPs. Dust emission control equipmentsfor all our cement plants and captive

power plant are designed and upgraded soas to achieve emissions well belowstatutory norms as well as our internalstandards. Some recent case studieswhere dust emissions were brought downare given here.

7.4 Case Study: Dust Control

WWWWWadi: Cadi: Cadi: Cadi: Cadi: Conononononvvvvversion of Kiln ESP to Bagersion of Kiln ESP to Bagersion of Kiln ESP to Bagersion of Kiln ESP to Bagersion of Kiln ESP to Bag

House:House:House:House:House:Two Kiln ESPs of 1200 TPD were designedfor capacity and emission level of 150 mg/Nm3 whereas they needed to be restrictedto less than 30 mg/Nm3. Both ESPs wereconverted to Bag Houses with state-of-the-art filter media using pulse jet cleaningsystem. After successful conversion, themeasured emission values were 3.6 mg/Nm3 & 1.55 mg/Nm3 for Kilns 1 & 2respectively, well below the designed valueof 30 mg/Nm3.

BarBarBarBarBargarh: Clinkgarh: Clinkgarh: Clinkgarh: Clinkgarh: Clinker Cer Cer Cer Cer Cooler ESP rooler ESP rooler ESP rooler ESP rooler ESP retretretretretrofitofitofitofitofit and and and and and

ESP cESP cESP cESP cESP conononononvvvvversionersionersionersionersionThe existing 3-field ESP supplied by FlaktIndia was designed to handle clinker coolergases with a view to achieve dust emissionlevel of 150 mg/Nm3. Subsequently, flue

gases from slag grinding circuit were alsointroduced into the same ESP. Theequipment could not cope with slag dustand a substantial increase in gas volumes.As a result dust emission increased beyond800 mg/Nm3.

An independent Bag Filter was installed forthe slag grinding circuit and these gaseswere delinked from the ESP. The ESPinternals were retrofitted with newdischarge electrodes and an additionalfield was provided at its inlet. The dustconveying system was also refurbished.The job was completed successfully andemission levels dropped to less than 16.4mg/Nm3.

To provide better environmentalconditions, it was decided to convert theESP to a Pulse Jet Bag House. Theconversion project successfully broughtdown dust emission levels to 1.9 mg/Nm3

against the design level of 30 mg/Nm3.

1919191919

Graph showing trend in blended cement production

ACC has successfully demonstrated re-channeling the use of industrial wastessuch as fly ash and slag to make premiumquality blended cements. Today it is thelargest producer of blended cements in thecountry, offering two varieties of blendedcements namely; Fly-ash based PortlandPozzolana Cement and Portland SlagCement. Fly Ash is generated as a waste byThermal Power Plants, while Slag is awaste by-product from steel plants.

FlyFlyFlyFlyFly-ash based P-ash based P-ash based P-ash based P-ash based Pororororortland Ptland Ptland Ptland Ptland Pozzozzozzozzozzolanaolanaolanaolanaolana

CCCCCemenemenemenemenementtttt (PPC) is made by intergrindinghigh strength clinker with processed flyash. This imparts a greater degree offineness to the cement and improvedworkability properties while mixing.Concrete made of this cement is morecorrosion resistant and impermeablewhich together provide better long-termstrength and durability of structures.

PPPPPororororortland Slag Ctland Slag Ctland Slag Ctland Slag Ctland Slag Cemenemenemenemenementtttt (PSC) ismanufactured by blending and inter-grinding OPC clinker and granulated slagin suitable proportions as per approvednorms of consistent quality. Portland Slagcement imparts strength and durability toall structures. PSC has many superiorperformance characteristics which give itcertain extra advantages when comparedto Ordinary Portland Cement

The manufacture of blended cementsusing pollutant industrial wastes is amongthe most publicly recognized eco-friendlypractices demonstrated by the cementindustry. ACC has been a trend-setter inthe industry in this respect with as muchas 85 % of its total production comprising

7.5 Mineral Components & Blended Cements

these environment friendly ‘green’cements. Following our lead, the share ofblended cements in total production hasbeen growing steadily in the last fewyears. Blended cements involve lesscombustion and hence less emissions. Theuse of these materials to make value-added cements is acknowledged asserving many benefits –conservation of

limestone (a precious mineral), energyconservation, recycling of pollutantindustrial wastes and reduction ofgreenhouse gases.

ClinkClinkClinkClinkClinker Fer Fer Fer Fer Facacacacactortortortortor: : : : : ACC has been able toreduce the clinker factor to 67.58% byutilizing other compatible industrialwastes like blast furnace slag and fly ash.

MinerMinerMinerMinerMineral Cal Cal Cal Cal Componenomponenomponenomponenomponenttttt and Clink and Clink and Clink and Clink and Clinker Fer Fer Fer Fer Facacacacactortortortortor

20072007200720072007 20062006200620062006

Clinker factor (%) 67.58 69.43

Blast Furnace Slag consumption (Million Tonnes / annum) 1.86 1.75

Coal fly ash consumption (Million Tonnes / annum) 3.54 2.99

In 2006, the company was felicitated by three ministries of the Government of India(Power, Environment & Forests and Science & Technology) for registering the country’shighest utilization of fly-ash.

2020202020

AFR PAFR PAFR PAFR PAFR PolicyolicyolicyolicyolicyACC’s Vision for AFR Business is to be themost respectable service provider to thewaste generators in India. The companyhas an AFR Policy that governs itsbehaviour and operations in co-processing various kinds of wastes incement kilns. In order to comply with theprinciples listed in the policy as also toprovide better services to our customers,ACC is setting up essential infrastructureand facilities including ISO 17025certified AFR testing laboratories forspeedy and accurate evaluation of wastes,continuous emission monitoring systemson kiln stacks, waste specific feedingarrangements and pre-processingplatforms at different locations.

TTTTTotal Solutionsotal Solutionsotal Solutionsotal Solutionsotal SolutionsIn order to provide our customers withlong term solutions for their entire wastedisposal problem, we enter into long termlegal contracts with them which cover allaspects of service provision. Specialattention is paid to Occupational Healthand Safety. Management and employeesare trained in handling and processing ofwastes. Risk Assessment Procedure (RAP)and Crisis Management Plan (CMP)documents are formulated for differentstreams of wastes after joint discussionwith the safety personnel at both ends.All findings and developments of co-processing are well documented andtransparently communicated to allstakeholders.

StakStakStakStakStakeholder Meetseholder Meetseholder Meetseholder Meetseholder MeetsThe ACC-AFR team has organized regionalstakeholder meets in different parts ofthe country in association with AmbujaCement Limited, Holcim, GTZ, Central andState Pollution Control Boards.Representatives from leading industriesand various cement plants haveparticipated in the events and speakersfrom various eminent organizations likeGTZ, Holcim, CMA, NCBM, Ramky, CPCB &SPCB have shared their experience ofhazardous waste management at these

7.6 Waste Management Services

ACC has embarked wholeheartedly on atrend setting path of promoting the useof Alternate Fuel and Raw Materials. TheAFR team offers total solutions for wastemanagement including testing based onco-processing. This is an environmentallysound technology to avert environmentdamage cost, threats to human healthand other risks and liabilities. It is a newconcept for Indian industry.

Co-processing refers to the use/disposalof waste materials in industrial processesas alternative fuels and raw materials torecover energy and material value fromthem, if any. Co-processing of hazardouswastes in existing cement kilns provides asimple, sustainable, local and immediatesolution to the problem of disposinghazardous wastes without affecting theenvironment, and without hugeinvestments. Co-processing is indeed amore environmentally sustainablemethod of waste disposal as compared tothe conventional methods of land fillingand incineration because it involvesreduced emissions and there is noresultant residue from it.

ACC now extends co-processing servicesin the country as a safe and environment-friendly method for management ofwastes to industry and society. We arecapable of accepting not only thosewastes which have some raw material orfuel value, but also other wastes whichare difficult to handle and dispose. Alltypes of wastes can be effectivelydisposed off in this way without anyharmful emissions, due to the hightemperature and long residence time ofthe material in cement kilns. An efficientcement kiln can thus provide anenvironmentally sound and cost-effectiverecovery or disposal option for mostwastes including hazardous and non-hazardous ones but excluding bannedwastes. These banned wastes compriseanatomical hospital wastes, asbestos-containing wastes, bio-hazardous wastes,electronic scrap, entire batteries,explosives, high concentration cyanidewaste, mineral acids, radioactive wastesand unsorted municipal garbage.

forums. In 2006 two stakeholder meetswere held at New Delhi and Jaipur.Subsequently two more stakeholdermeets were organized at Bangalore andAhmedabad in 2007.

New InitiaNew InitiaNew InitiaNew InitiaNew InitiativtivtivtivtivesesesesesThe following are some highlights of theinitiatives taken by the AFR team in 2007:� A national level agreement with a

leading company in fast movingconsumer goods business to dispose oftheir expired products at ACC’s Kymoreplant in Madhya Pradesh.

� Madhya Pradesh Pollution ControlBoard was the first to grant permissionto ACC Kymore works for the trial burnof ETP sludge and poly residue wasteat Kymore Works. In order todemonstrate the safe andenvironment friendly disposal of thesewaste materials to variousstakeholders ACC undertook asuccessful co-processing trial withthese materials.

� Memorandum of Understanding(MoU) with Indian Centre for Plastics inthe Environment (ICPE) for JointIndustrial Research Project on Co-processing of Plastics Waste asAlternate Fuel in Cement Kilns.

� The Wadi plant in Karnatakasuccessfully disposed of an entiregeneration of spent activated carbonfrom a reputed refinery.

� Long term agreements finalized with apremier multinational automobilegroup in Karnataka. Long termagreements have also been signedwith leading food and beveragesmanufacturing, pharmaceutical andmachinery manufacturing companies.

� The Madukkarai plant in Tamil Nadusafely disposed an entire generation ofcalcium fluoride sludge, a hazardouswaste from fertilizer industry.

Other achieOther achieOther achieOther achieOther achievvvvvemenemenemenemenementststststsThe State Pollution Control Boards ofOrissa, Rajasthan and Himachal Pradeshhave invited ACC to provide them supportfor management of hazardous waste in

2121212121

their states. The company has posted anumber of issues in the Draft HazardousMaterials (Management, Handling andTrans-boundary Movement) Rules, 2007as inclusion of the definition of co-processing in the rules, acceptance of co-processing as a waste managementsolution, etc. The draft was rigorouslyanalyzed and the concerns weresubmitted to the Ministry of Environmentand Forests and represented throughFederation of Indian Chambers ofCommerce and Industry (FICCI),Confederation of Indian Industry (CII) andCement Manufacturers’ Association ofIndia (CMA).

The AFR team is represented on theTechnical Team of India’s 11th Five YearPlan, which will consider AFR as a nationalinitiative. The team is working inassociation with GTZ and PollutionControl Board for formulating guidelinesfor obtaining TSDF status for cementkilns.

TTTTTesting festing festing festing festing facilitiesacilitiesacilitiesacilitiesacilitiesACC is setting up ISO 17025 certified AFRtesting laboratories at its Wadi,Madukkarai and Kymore plants and at theTechnical Support Services in Thane- nearMumbai, for prompt and accuratedetermination of waste characteristics.Construction work on the laboratories isnear completion and most of the testingequipment has already reached theplants. They will be manned by trainedchemists. Over 600 samples fromdifferent industries have been tested sofar.

RRRRReduceduceduceduceduction of Grtion of Grtion of Grtion of Grtion of Green House Gases (een House Gases (een House Gases (een House Gases (een House Gases (GHG)GHG)GHG)GHG)GHG)

emissionsemissionsemissionsemissionsemissionsThe usage of AFR in cement process doesnot lead to any additional emissions. Thisfact is reinforced through the trial runsthat have been conducted by third partymonitoring agency which demonstratesthat all emissions in the kiln stacksincluding the heavy metals, POPs, PCDDsand PCDFs are well within the normsprescribed by CPCB for the incinerators. Infact, some of the emissions (such as NOx)were reduced by disposing/using thewastes in the cement process. The overallCO2 emission also decreases.

Thus, ACC is going a long way in promotingco-processing as an environmentallysustainable solution for the managementof hazardous and non hazardous wastesfrom the industries. Further, the cementplants already exist, so there is no need toinvest in infrastructure development for

waste disposal, and this reduces the usageof public funds. Considering the costtowards environmental remediation andthe expenses related to health and wellbeing of the society, co-processing offersthe most economical solution for themanagement of wastes.”

2222222222

ACC has a rich and long experience inmining, being the largest user oflimestone in the country. Limestone is theprincipal raw material for cementmanufacture whereas shale, clay andquartzite are required in smallerquantities being additives for correction.Most of our limestone requirement is metfrom our captive mines. ACC operatestwelve limestone mines which are captiveto its cement/clinker manufacturingplants. The company holds mining leasesfor limestone, clay, quartzite and shale inthe states of Himachal Pradesh,Rajasthan, Maharashtra, Karnataka, TamilNadu, Orissa, Madhya Pradesh,Chattisgarh and Jharkhand. Limestone,clay and shale occur together and minedproportionately based on therequirement.

Limestone production during 2007 wasabout 19.2 Million Tonnes whereas totalmaterial handled was about 27.7 MillionTonnes. An additional 8.5 Million Tonneswas handled as overburden to exposesubsurface limestone.

Mining operations start with drilling andblasting. Mines development is an activityundertaken to expose subsurfacelimestone for use as raw material forclinker manufacture. The next stage is theraising or production process, followed byloading and transportation. During themining of limestone, overburden isencountered in the form of soil, shale,sandstone and other material that cannotbe used in the cement process. Suchmaterial is stored separately inoverburden dumps. It is used later forbackfilling and reclamation of workedout and used mines Similarly top soilcollected while removing overburden isalso stored and stacked separately for usein afforestation.

Sub grade limestone encountered in themining process is not discarded butenriched with high grade limestone. Suchblending of limestone helps in theconservation of this mineral.

7.7 Mining & Quarry Rehabilitation

ACC has a mechanized method ofopencast mining which uses shoveldumper for loading and transportation oflimestone and overburden. Drilling isperformed with integrated DTH drillingrigs. ACC was first in the country to useseveral mining equipment such as thehydraulic drill, high capacity excavator (7cubic metres bucket capacity) and highcapacity (85 Tonnes) dumper at its Wadimine. These were inducted to achievehigher production as well as for reductionof fuel consumption.

Fuel (Diesel) consumption by our mines ona company wide basis in 2007 was 0.39litre per tonne of material handling. Theequipment sizing for shovel/ excavatorand dumper varies from 2.8 cum to 7 cumfor excavator and 35 T to 85 T in case ofdumper, depending on the size of themine. The smallest mine in ACC producesabout 45000 tonnes per month whilelargest produces about 600,000 tonnes permonth.

Mines SafetySafety in mines receives overridingpreference irrespective of the size and

scale of operations at the mine. Allmining personnel - whether inmaintenance, production, operation oradministrative jobs - have to undergospecific on-the-job training and a safetyorientation before being allowed toresume routine work.

Mining activity is supervised, controlledand managed by qualified Engineers so asto conform to standard procedures,meeting regulatory norms of DirectorateGeneral Of Mines Safety for safety, healthand welfare matters of all minesemployees and norms of the Indian Bureauof Mines for conservation and utilization ofmineral.

Afforestation ActivitiesThe overburden dump once matured isafforested through plantation. Nonmineralized areas are also brought underplantation.

National Remote Sensing AgencyACC requested National Remote sensingAgency (NRSA), an agency underDepartment of Space, Govt. of India, tocarry out land use assessment studies

Kymore: The satellite image shows a canopy of green belt created along the conveyor belt transportinglimestone from the mines to the Plant

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around its cement plants and captivemines as part of an Environmental ImpactAssessment with a view to assess changesin the mine and surroundingenvironment. The study covered land useand land cover in a radius of about 25 kmaround the mine and plant with respect tobuilt-up areas, agricultural land,wasteland, forest areas, mining and waterbodies. NRSA used remotely sensedsatellite derived data with different multi-spectral bands in different spatialresolutions. The studies compared satelliteimages of the year 2001-2002 with similarimages of 2006-2007.

NRSA was assigned to carry out studies forall 9 integrated Cement plans of ACC. Ason April 2008, they have carried outstudies for Kymore, Wadi, Chanda andJamul, the final report on Kymore & Jamulhas been submitted.

The report concludes that land use andland cover pattern of the area aroundKymore and Wadi plants reveals that therehas been a significant increase in the area

Wadi: Satellite image depicts land cover in and around Wadi Plant in 2001 and the changes in 2005

under dense forest during 2006-2007 ascompared to 2001-2002. There is animprovement in the double cropped area

BefBefBefBefBefororororore:e:e:e:e:ACC planted 1 million trees on barren hills near our Kymore plant in collaborationwith the State Forest Department in February 2003.

AAAAAfffffterterterterterIn December 2006 the same hill range became lush withgreenery and inhabited by wild life..

KymoreThe satellite image shows a green belt created along the conveyor belt transportinglimestone from the mines to the plant.

WadiIRS image depicts land cover in and around Wadi plant in 2001 and the changes in 2005.

as well as in surface water spread whichcould be attributed to adoption of soil andwater conservation measures.

2424242424

ACC has won several prizes and certificatesof merit for its programmes involving‘greening,’ afforestation, reclamation andrehabilitation, top soil management, noiseabatement and other visible measuressuch as tree plantation and watermanagement. ACC has proudly showcasedits successes with reclamation of landsabandoned as mines and quarries. Someof these desolate tracts have beentransformed into green parks, orchards,forests and even a bird sanctuary with apicturesque lake.

Tree plantation is a regular and committedactivity. Vacant land available in the plant,mines and colony at each of our factories isused to develop greenery of variousspecies. Some of our plants havedeveloped as much as 40 per cent area forgreen belts as compared to the statutoryrequirement of 30 per cent. Each cementplant has its own success story of treeplantation, greening activities,horticulture, flower and fruit cultivationand water conservation.� Kymore has undertaken greening of the

desolate Kaimur Hills – an ambitiousproject where 1,50,000 trees are alreadyplanted with a survival rate of morethan 95 per cent. Elsewhere volunteersat Kymore have planted a record

7.8 Greening

1,00,000 saplings in a single day.� At Gagal in Himachal Pradesh, 1.1

million plants and saplings were plantedin waste lands.

� Chaibasa distributes saplings to localpeople free of cost on IndependenceDay. 1,50,000 trees have been plantedover an area of 24.9 hectares.

� In Chanda around 5000 trees areplanted every year.

� Fruit orchards and plantations flourishin Jamul, Katni and Gagal.

Rocky areas in mines have been renderedsuitable for plantation by over-spreadingtopsoil obtained from mining activity.Afforestation programmes at our unitshave helped transform the once barrenand dry ambience of our plants into lushgreenery. ‘Each One Plant One’ has been aninspiring message practiced by many ofour employees. The total plantationundertaken across ACC is more than 3.3million numbers of trees, with an averagesurvival rate of 85 per cent and spread overan area of 10,000 acres in mines, factoriesand residential townships.

Tree plantation and green beltdevelopment programmes have also beenextended to cover adjoining areas in thevicinity of our plants for the benefit of the

entire local community.

Bio DivBio DivBio DivBio DivBio Diversityersityersityersityersity: Among the most satisfyingresults of the company’s horticulture,rehabilitation, greening and afforestationactivities is the opportunity it provides toenable natural life to flourish. This is mostevident in the many water bodies createdin abandoned mines or the dense forestsand orchards grown on arid and barrenlands where migratory birds, insects andplants thrive.

There are no known instances of anyendangered wild life or plant speciesaround our locations. No formal study hasas yet been undertaken to assess theimpact of our operations on the flora andfauna around plant and mines. Howeverwe aim to take up this task within the nexttwo years.

Wild life conservation plans have beenmade and submitted for two of ourlocations in the states of Jharkhand andOrissa. These include suggestions inrespect of the protection of flora andfauna along with the creation of somebasic infrastructure for water-harvesting,support for anti-poaching measures andlivelihood generation assistance for tribalsin forest areas.

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Coal is the principal fuel used in cementmanufacture. As this non-renewable fuelgets scarce and costly, serious efforts arebeing made to identify substitutes. Agrowastes are an attractive and renewablealternative fuel, rich in calorific value andavailable in abundance. ACC has beenusing agro wastes as fuel in its cementprocess for many years. The biomass usedis rice husk, cashew shell, mustard stems,wood waste, tamarind shell and cow dungflakes.

Use of biomass reduces overall CO2

emissions. Biomass is considered as acarbon neutral entity, as trees bothsequesters carbon and releases it oncombustion. Additionally, the use ofbiomass prevents its decay which releases

7.9 Case Study: Plantations for bio-mass

the green house gases CO2 and NH

3 in the

atmosphere.

At ACC, we aim to plant 5 million Jatrophasaplings by 2009. Almost 1.2 million ofJatropha plantations have beenundertaken in our waste lands areas.These trees yield fruit, biomass, de-oiledcake and raw extracted oil (withoutesterification) which produces thermalenergy on combustion. Jatropha have a lifeof 25 to 30 years and require littlemaintenance. Such plantation helps inrestoration of vast tracts of degraded landsaround the works.

Our Kymore plant uses Parthenium, a wildand deleterious weed as another type ofbiomass. Parthenium grass is an alien

invasive species eroding the nativebiodiversity. It competes with agriculturalcrops in the fields and depletes the soil ofits fertility. Parthenium’s miniscule pollenparticulates are a threat to humans andcause severe respiratory disorders. ACC hasengaged the local community through co-operative society for collection of this wildweed. This is a win-win situation for thevillagers who get their fields cleared of theweed, earning money by selling theseweeds to us and getting employment. ForACC, this means an abundant supply ofbiomass from surrounding areas andreduced dependence on fossil fuels.

Plantation of other fast growing trees isbeing undertaken so that tree pruningsfrom these may serve as an economicaland sure supply of coal substitutes.

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Our water conservation efforts have beennoteworthy, with important contributionsfrom nearly all our plants. The companymaintains a norm of Zero Water Dischargeat all cement units. Water is used in theplants as industrial cooling and the entirewater is recycled through cooling towers,water ponds and tanks.

Ground water encountered during miningoperations at our mines together with anyother rain or surface water, is pumped outof the mines to keep it dry for operation.ACC cement plants have converted oldabandoned mines into huge reservoirs bycollecting rain water from differentcatchments around mines. The collectedwater is then channelled into theabandoned mines forming water storageareas. The capacity of each such reservoir isapproximately 6 to 10 lakh cubic metres.The reservoir water is further treated inthe plant and colony before it is used. Oldworked out mines have thus beenconverted into water reservoirs at Kymore,Jamul, Chaibasa and Wadi plants. Thesereservoirs meet the water requirement ofour plants and help improve ground watertables in surrounding areas. Rain waterharvested at Lakheri mine is utilized forirrigation of surrounding areas.

As a result of these initiatives, we nowhave several examples of outstandingachievements in water harvesting and inthe creation of reservoirs in abandonedmines and quarries. Some of our plantshave become self-reliant with respect totheir water requirements for use in theplant, mines and colony.

7.10 Water Management

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ACC’s Gagal Cement Plant in the NorthIndian state of Himachal Pradesh was thefirst to set up a Bio-Tech Root Zonetreatment Plant for managing domesticsewage and waste water using a naturalprocess which is simple and cost-efficient.

The system involves runningcontaminated water into trenches filledwith certain reeds such that the waterpasses underground through the root zoneof specially designed reed beds. The reedsand reed beds together create aremarkable effluent treatment factorybeneath the surface of the soil. Dirty waterflows into the system only to emerge asclear water that has been madeenvironmentally acceptable using a basicnatural process.

The reeds of the species, phragmites, areessentially wetland plants, that have acapacity to absorb oxygen from the airthrough stomatal openings behind theirleaves. The oxygen is pushed through theporous stems of the reeds into the hollowroots, where it enters the root zone andcreates optimal conditions for the growthof numerous bacterial and fungi.

Bio diversity is the key to the root zoneprocess. More than 2000 types of bacteriaand tens of thousands of fungi exist in thereed bed. These microbial organisms oxidizeimpurities in the wastewater anddecompose the contaminants to their basic

7.11 Case Study: Waste Water Treatment

form. Phosphates, sulfur compounds andnitrogenous materials reduce to theirelemental forms. Heavy metal precipitatesare bound into the soil matrix. The outcomeof this constructed marsh is treated wastewater which is not only environmentallyacceptable but much cleaner.

The process is very efficient andenvironment friendly as it is in itselfcompletely natural. It involves minimumenergy. No mechanical equipment isneeded to pump the water as it is made toflow into the reed beds by gravity. The starcleansers are these reeds which are bio-degradable and renewable. There is no

odour and no toxic chemicals are used.Since all the sewage flows are subsurface,no foul smell emanates from the wastewater and there is no breeding groundavailable for mosquitoes and flies. In factthe plants are very adaptive and canrespond to wide changes in the quality ofwastewater. A two hectares wetland plotwith reed plantations can tackle effluentfrom a population of around 4500 persons.

The Gagal root zone plant has a capacity totreat 100 cubic meter of domestic sewageper day. Root zone treatment is a cost-effective and eco friendly solution to wastewater treatment.

A Root Zone Biotech plant at ACC Gagal that enables treatment and recycling of waste water.

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ACC has initiated several steps to reduceCO

2 emissions through various means such

as upgradation of technology, usage ofalternative fuels and raw materials,reducing clinker factor by using materialslike fly ash, slag and various energyconservations means. The company hasregistered two of these projects underClean Development Mechanism (CDM).

Blended CBlended CBlended CBlended CBlended Cemenemenemenemenementtttt Pr Pr Pr Pr Projecojecojecojecoject:t:t:t:t: This projectseeks to conserve limestone through anincrease in the proportion of fly ash blendin cement. Considerable research wasinvolved to successfully increase theproportion of fly ash in the blend beyondgeneral conventions withoutcompromising the strength characteristicsof cement. Generally in India, 18-20% isthe fly ash proportion, whereas ACC hasincreased this proportion to 30%.

ACC has put in considerable investments inimplementing this project activity at site.The major investment is in increasedcapacities of fly ash feeding silos, conveyorsystems, feeding systems, andsynchronization of project activity withcentralized monitoring and managementsystem.

ACC has successfully implemented thisCDM Project at four Cement plants. Indoing this, several environmental issueshave been addressed.� Lower consumption of limestone, a

natural resource, thereby reducing theGHG emissions resulting through theprocessing of carbonaceous materials.

� Utilization of fly ash, a pollutantbyproduct of thermal power plantswhich is difficult to handle and disposein an eco-friendly manner.

� Reduced power consumption in cementprocessing thereby reducing the load on

7.12 Towards Greener Technologies

grid power supply and coal or dieselbased captive power plants.

WWWWWind Mill Pind Mill Pind Mill Pind Mill Pind Mill Powowowowower Prer Prer Prer Prer Projecojecojecojecoject:t:t:t:t: ACCsuccessfully commissioned its first WindEnergy Farm located in Udayathoor inTirunelveli district, Tamil Nadu. Thisinitiative is part of the company’s efforts toadopt clean and green technologies toreduce dependence on conventional fossilfuel based energy sources.

The wind power plant comprises sixmodern wind turbines each of capacity1.5MW. The Udayathoor Wind Farm islocated near Kanyakumari, a region thatexperiences winds of enough speed tosupport wind energy installations. Windpower generated here is wheeled to ACC’sMadukkarai Cement plant in Coimbatorethrough a suitable arrangement with thestate grid. Excess power not utilized byMadukkarai plant will be offered to thegrid. So far the farm has generated 12million units of energy.

Electricity generated from wind power isGreen energy. It is renewable; non-polluting, relatively noise-free and leads tono direct emissions. Wind energy projectsare eligible for Clean DevelopmentMechanism (CDM) benefits under certainspecific conditions. ACC is exploring otherviable locations for setting up wind farms.Approval has been received for a windmillto be located in Rajasthan.

Industrial fIndustrial fIndustrial fIndustrial fIndustrial farming Of Carming Of Carming Of Carming Of Carming Of COOOOO22222: We have

initiated a project to sequester CO2

generated by cement kilns to produce highenergy oil bearing algal biomass, whichcan then be reused as fuel in cement kilns.Conservation of fossil fuel and CO

2

mitigation are the two main driving goalsof the project. The plan is that the algal

biomass produced by the bioreactor,through recycling of the CO

2 from the

cement kiln stacks, will be directly fired inthe captive power plants and the cementkilns. The targeted goal of this project is toharmonize the algal production rate withthe CO

2 emission rates, and ensure

continuous recycling of CO2, thus providing

continuous algal biomass fuel for the kilnand power plants. It involves the screeningof appropriate high and fast yielding algaecultures, the development of a bioreactoron a lab bench scale, scaling up thetechnology to a pilot plant and thendemonstrating the same commercially. Theproject calls for a multi disciplinaryapproach and involves microbiologists,algae experts, bio-technologists, engineersand other professionals. The company isworking with other agencies to take uptrials of different industrial systems toidentify the best algae strains and mostappropriate culture methods forincorporation into the cement productionprocess.

WWWWWaste Heaaste Heaaste Heaaste Heaaste Heattttt r r r r recececececooooovvvvverererereryyyyy::::: In dry processcement plants nearly 40 percent of totalheat input is rejected as waste heat fromexit gases of pre-heaters and grate coolers.In most plants the waste heat is utilisedfor drying raw material or pre-heating airrequired for coal combustion. But evenafter covering these applications, there isstill some heat available which can beutilised for electrical power generation.Tapping this energy offers much potential.Waste Heat Recovery Systems are knownto be working successfully in cementplants in some countries. The powergenerated in this way can be enough tooperate the kiln section on a sustainedbasis. ACC is exploring power generationbased on waste heat recovery from cementkiln and cooler gases.

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8 Social Performance

ACC demonstrates the practices of being agood corporate citizen and has a clearlystated policy in respect of its corporatesocial responsibility.

ACC has pledged to uphold the principlesof The Global Compact, the voluntaryinternational corporate citizenshipnetwork initiated by the United Nations.

ACC personnel devote considerable time ininteracting with and trying to meet theneeds of the populace in the vicinity of itsplants. In 2006 we initiated a detailedexercise of Community Needs Assessmentstudies undertaken through in-houseteams and with external expert agencies.The research was done in a participatory

manner involving key stakeholders fromthe local community and others. Weintend to roll out this study at all plants.

ACC supports all major State and Nationalhealth initiatives such as the eradication ofmalaria and dengue fever. More recentlythe company stepped forward to play ameaningful role in the nationwide effort toeradicate HIV/AIDS. We first announced aworkplace policy for HIV/AIDS to guaranteeand safeguard the rights of employeesinfected and affected by this virus. Nextthe company decided to set up two AntiRetroviral Treatment Centre for HIV/AIDStreatment in States with high prevalence.This is the first such initiative by anycompany in the Indian corporate sector.

A materiality matrix was drawn based ondeliberations of a large team of executivesfrom all major functions and regions of thecompany. Executives from our associatecompanies Holcim of Switzerland andAmbuja Cement Limited also participated.The group identified issues of criticalimportance in the area of sustainabledevelopment. The resultant matrixmatched areas of concern to variousstakeholder groups with their impact onthe company. We propose to get thismatrix endorsed by external stakeholdersusing the services of a third party to verifythe process. The resultant matrix will proveto be valuable in guiding our agenda forsustainable development. We will featurethe final matrix in our next report.

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ACC has a large workforce of more than10,000 people, comprising of experts invarious disciplines assisted by dedicatedskilled persons. ACC employees, referred toas the ACC family, come from all parts ofthe country and belong to a variety ofethnic, cultural and religious backgrounds.ACC employees display a strong sense ofloyalty to the Company and their specialstellar qualities as ‘value-adding’ humancapital are well known in the industry.

ACC has a fair and transparent recruitmentprocess with adequate opportunities tolook for suitable candidates internally aswell as from outside.

PPPPPerererererffffformance Managemenormance Managemenormance Managemenormance Managemenormance Management: t: t: t: t: TheCompany’s performance managementsystem is in itself a benchmark thatprovides ample opportunities andmotivational incentives to employees toreward and retain good talent. There arePerformance Linked Incentives, Good WorkAwards, Letters of Appreciation, SpecialIncrements, Promotions, Nomination toexternal training programmes in India andabroad, public felicitation and appreciationAwards. Some plants felicitate and rewardBest Employee and Employee of theMonth. Employees who display aptitudeare invited to become Trainers themselvesand receive Train the Trainer facilitation.

ACC’s new Performance ManagementSystem incorporates a linkage between anindividual employee’s performanceindicators with the organizational goalswhich allows the employee to see his orher role in contributing to achieve theorganisation’s objectives. Training isimparted to take care of an individual’scareer development as well as functionaland skills enhancement. Competency andDevelopment training inputs include Skilland general performance enhancement,communication skills and careerdevelopment.

WWWWWelfelfelfelfelfararararare & Amenities:e & Amenities:e & Amenities:e & Amenities:e & Amenities: Employee welfarereceives prime attention at ACC. We haveseveral schemes for general welfare of

8.1 Human Resources and Employment Practices

employees and their families. These covereducation, healthcare, retirement benefits,loans and financial assistance andrecreation facilities.

ACC townships have excellent schools thatare often the best in the district. Educationat these schools is subsidized foremployees’ wards. We offer attractivescholarship allowances for childrenstudying at places away from theirparents, merit scholarships foroutstanding children and financialassistance for employees’ children topursue higher professional education.

Liberal medical benefits are madeavailable to employees and their familymembers by way of reimbursements

towards normal medical treatment,domiciliary treatments and specialsanctions for serious illness. Each of ourtownships has well-equipped health carecentres with qualified medical staff andfacilities, ambulance, referrals and tie-upswith reputed hospitals for specialisedtreatment. In addition, there are regularhealth check-ups, camps andprogrammes.

Employees are eligible to apply for loansand financial assistance for variouspurposes such as purchase of assets,residential premises as well as a schemethat provides for supply of cement atsubsidized rates to those building theirown houses.

At our cement plants employees are

AAAAAvvvvverererererage annual base salarage annual base salarage annual base salarage annual base salarage annual base salary of male and fy of male and fy of male and fy of male and fy of male and female emploemale emploemale emploemale emploemale employyyyyees by managemenees by managemenees by managemenees by managemenees by managementtttt le le le le levvvvvel inel inel inel inel in

20072007200720072007

ManagemenManagemenManagemenManagemenManagementtttt L L L L Leeeeevvvvvelelelelel AAAAAvvvvverererererage annual rage annual rage annual rage annual rage annual remuneremuneremuneremuneremuneraaaaation in Ition in Ition in Ition in Ition in INNNNNRRRRR

MaleMaleMaleMaleMale FFFFFemaleemaleemaleemaleemale

Top and Senior Mgmt. Level 2,636,031 1,398,594

Middle Mgmt. Level 651,039 619,637

Other employees 343,535 343,666

TTTTTotal wotal wotal wotal wotal workforkforkforkforkforororororce by emploce by emploce by emploce by emploce by employmenymenymenymenymenttttt type and ca type and ca type and ca type and ca type and categortegortegortegortegoryyyyy

ManagemenManagemenManagemenManagemenManagementtttt L L L L Leeeeevvvvvelelelelel OtherOtherOtherOtherOther

TTTTTopopopopop SeniorSeniorSeniorSeniorSenior MiddleMiddleMiddleMiddleMiddle EmploEmploEmploEmploEmployyyyyeeseeseeseesees TTTTTotalotalotalotalotal

Male *FTE excluding subcontracted personnel 65 325 1,317 8,175 98829882988298829882

Female FTE excluding subcontracted personnel 1 7 56 90 154154154154154

TTTTTotal FTotal FTotal FTotal FTotal FTE eE eE eE eE exxxxxcluding subccluding subccluding subccluding subccluding subcononononontrtrtrtrtracacacacacted personnelted personnelted personnelted personnelted personnel 6666666666 332332332332332 1,3731,3731,3731,3731,373 8,2658,2658,2658,2658,265 1003610036100361003610036

*FTE - Full Time Employees

TTTTTotal number of emplootal number of emplootal number of emplootal number of emplootal number of employyyyyees’ees’ees’ees’ees’ turno turno turno turno turnovvvvver by age grer by age grer by age grer by age grer by age group and genderoup and genderoup and genderoup and genderoup and gender(Including those leaving voluntarily or due to redundancy, dismissal, retirement or deathin service)

MaleMaleMaleMaleMale FFFFFemaleemaleemaleemaleemale TTTTTotalotalotalotalotal Number agedNumber agedNumber agedNumber agedNumber aged

underunderunderunderunder 30-5030-5030-5030-5030-50 ooooovvvvver 50er 50er 50er 50er 50

30 y30 y30 y30 y30 yearsearsearsearsears yyyyyearsearsearsearsears yyyyyearsearsearsearsears

Number of FTEs leaving 463 47 510510510510510 147 302 61the company in 2007

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provided furnished and unfurnishedaccommodation based on theirentitlements. At many locations,employees are given free electricity, freewater supply and free bus facility fornearby places and schools. These housesare well-maintained and periodicallyupgraded.

EmploEmploEmploEmploEmployyyyyee saee saee saee saee satisftisftisftisftisfacacacacaction:tion:tion:tion:tion: In addition toperiodic internal Employee SatisfactionSurveys, ACC participates in EmployeeSatisfaction and Work Place Surveysconducted by reputed external agencieslike Hewitt Associates and Grow Talent.ACC has also retained reputed firms likeMercer and Boston Consulting Group tostudy the internal work environment andemployee policies to suggest areas ofimprovement. We share below salientpoints of the latest survey of employees:� People are treated fairly regardless of

religion and gender� ACC is a safe place to work

� Management is competent in runningbusiness

� Employees feel good about what we dofor society

� Proud to tell others I work here� Management thinks positivelyThe overall findings show significant jobsatisfaction at all levels as also deeprespect for the Company, itsperformance management system andits overall business performance. Thecompany has just concluded a survey toassess employee perceptions of thequality of life of its employees,particularly those posted at our cementplants.

EmploEmploEmploEmploEmployyyyyee pree pree pree pree pracacacacactices:tices:tices:tices:tices: ACC has a goodrecord in respect of the treatment of itsHuman Resources. Our HR policies andprocedures have been designed to giveprime importance to employee welfareand to enable a work environment thatcombines mutual trust and productivity.

The Company is committed to enforceall relevant provisions and rules ofvarious statutes/authorities as regardslabour policies and practices. Regularinternal audits are carried out by CorporateHuman Resources and Management Audit.The Company participates in variousexternal surveys to benchmark its existingpolicies and practices to constantly improveupon the same and align itself with thechanging employer-employee paradigmand expectations. Some of the specificsteps taken by our factories andestablishments in this respect includeregular meetings with Unionrepresentatives, regular communicationmeetings and obtaining direct and informalfeedback from employees and through Bi-partite Committees. The Company isfortunate that it has had no strike orcessation of work in the past three years atany of its locations.

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AAAAAvvvvverererererage hours of trage hours of trage hours of trage hours of trage hours of training per yaining per yaining per yaining per yaining per year per emploear per emploear per emploear per emploear per employyyyyee caee caee caee caee categortegortegortegortegoryyyyy

ManagemenManagemenManagemenManagemenManagementtttt L L L L Leeeeevvvvvelelelelel EEEEExpenses (Rs.)xpenses (Rs.)xpenses (Rs.)xpenses (Rs.)xpenses (Rs.) Number of hours spenNumber of hours spenNumber of hours spenNumber of hours spenNumber of hours spenttttt

TTTTTotalotalotalotalotal AAAAAvvvvverererererageageageageage TTTTTotalotalotalotalotal AAAAAvvvvverererererageageageageage

Top and Senior Mgmt. Level 7101320 17840 30,656 40

Middle Mgmt. Level 36746640 18360 268,000 40

Other employees 45685800 5960 80,000 40

Our Performance Management Systemincorporates a process called CompetencyAssessment and Training andDevelopmental Needs wherein appraisersare specifically called upon to identify andassess training needs of employees at

8.2 Training and Development

specific intervals that do not coincide withPerformance Appraisals. This is so thattraining needs can be assessed objectively.Training is imparted to take care of anindividual’s career development as well as

functional and skill enhancement.Functional training needs are identifiedand conducted by functional departmentswhile Corporate HR organizes competencyand developmental inputs.

3333333333

ACC has taken purposeful steps in respectof knowledge building through a specialthrust to people development, learning,sharing of knowledge and best practices.

The prestigious Sumant MoolgaokarTechnical Institute (SMTI), formerly theKymore Engineering Institute in MadhyaPradesh completed 50 years in 2007. SMTIhas had a distinguished track record ofproducing more than 3000 Artisans andForeman trainees who have servedcreditably in ACC and other cement plantsin India and abroad. Most of the alumnicomprised children of employees, workersand the local community around ACC’scement plants. Training at SMTI wasvalued as being superior to that provided

8.3 Knowledge and Skills Development

at various Industrial Training Institutes inthe country. SMTI was reopened in 2007with a fresh vision and curriculum thatnow inducts Industrial Training Institute(ITI) qualified students and grooms themfor technical and supervisory positions inElectrical, Instrumentation, Diesel andFitting trades in India’s Cementmanufacturing sector. The facultyincludes engineers with considerableexperience in ACC’s cement plants or inthe field of technical education.

The programmes at the Regional TrainingCentre in Jamul in Chattisgarh are beingrevamped to offer professional technicalcourses also relevant to manufacturingsectors such as Cement.

As part of a public-private partnershipscheme, ACC volunteered to work withGovernment and industry associations toupgrade ITI’s located near ACC’s cementplants. So far agreements for partnershipswith 7 ITI’s have been finalized with Stategovernments.

ACC operates schools at most of its cementplants which maintain high standards andare open to other children of the vicinity.These schools are preferred centers oflearning in the district and adjoining areas.Wherever possible, ACC provides fundsand infrastructure to help support localcenters for education, such as funds fornew buildings, repairs and scholarships.

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Occupational Health & Safety (OH&S) is avital part of ACC’s journey towardsSustainable Development. Safety Auditsare being carried out in ACC since 1995 byNational Safety Council based on the5-Star Auditing System of British SafetyCouncil. There is a continuous effort tomeasure and improve Safety ManagementSystems to avoid accidents.

Safety Observation Tours (SOT) areconducted at all plants for identifyingsafe/unsafe behavior and conditions of anactivity or task. It is mandatory for allmanagement staff to conduct SOT once ina week for their respective work areas.During SOT, line managers identify safe/unsafe behaviour and conditions andsuggest appropriate control measures.

Hazard Identification and Risk Assessmentworkshops are held at all plants to identifyhazards and assess risks and takeappropriate control measures. Theworkshop involves all line mangers of theplants to assess and prioritize the risk.

A Red Card System is being followed tofacilitate reporting of hazards directly tothe top management by all employees.Any employee either from management ornon-management staff can report hazardsdirectly to the Plant Head through thissystem.

A personal hazard reporting system is alsoin place. This is a process wherein anyperson from any functional area canidentify hazards and report to theconcerned supervisor. The supervisorassesses the risks associated with thehazard and suggests control measures tobe applied. A record of all the hazards thusidentified is maintained in the Hazardregister. Departmental safety committeescarry out plant safety inspections of theirspecific work areas on a routine mannerwith specific checklists to identify thehazards and suggest remedial measures.Tool Box talks are arranged daily at thebeginning of each shift in everydepartment to discuss and communicate

8.4 Occupational Health & Safety

work place hazards and risks involved in aprocess or operations wherein the personare employed. Safety Gate meetings areheld on the first of each month tocommunicate safe practices.

ACC follows an OH&S pyramid systemwhich is an Occupational Health andSafety Management System. It has aseparate block for hazard identificationand hazardous work areas whichspecifically deal with different types ofhazards and their control measures.

SafSafSafSafSafety Awety Awety Awety Awety Awararararareness Ceness Ceness Ceness Ceness CampaignampaignampaignampaignampaignSafety awareness campaign was carriedout for the employees working in thecorporate office and Thane office of ACC.The purpose of the campaign was to createawareness amongst the employeesregarding OH&S policy, principles andmanagement system. The campaign alsocovered awareness sessions on safety onroad, rail safety and safety at home. Theparticipants were made aware ofimportant safety aspects, one should keep

in mind while traveling by rail or road. Theywere also given tips to improve safety attheir home. During the campaign all theparticipants were given a pocketguidebook covering basic aspects of safetyat workplace which they can refer to all thetime.

OH&S OrOH&S OrOH&S OrOH&S OrOH&S Organizganizganizganizganizaaaaation Struction Struction Struction Struction StructurturturturtureeeeeACC’s OH&S Organization is headed by theManaging Director and extends into threegroups i.e. Corporate, Region, and Plant. AnOH&S coordinator at corporate officedrives the OH&S policy and principles in allplants of ACC and provides expert adviceto the management regarding OH&Smatters. He is supported by professionalsoverseeing four important areas - OH&STraining, OH&S Programmes, OH&SReporting & Administration andConstruction Safety. The OH&S Headcoordinates major OH&S initiatives in allplants. Regional OH&S coordinators ensurethat the flow of information reaches theplant OH&S team and also providessupport to the plant OH&S team in all

OH&S POH&S POH&S POH&S POH&S Perererererffffformanceormanceormanceormanceormance

20072007200720072007 20062006200620062006LTIFR (Own and Subcontractor employees) 0.90 0.93LTISR (Own employees) 38.85 63.03Occupational diseases No case No CaseLost time Injuries 40 38

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their activities. The Plant OH&S team isresponsible for providing necessary OH&Straining to line managers and forconducting scheduled inspections of plantfacilities. They also support linemanagement in implementing safetymeasures in the plant.

CCCCCAAAAASE SSE SSE SSE SSE STTTTTUUUUUDDDDDY – HazY – HazY – HazY – HazY – Hazararararard Prd Prd Prd Prd Profilingofilingofilingofilingofiling

WWWWWorkorkorkorkorkshopshopshopshopshopThe purpose of this workshop is HazardIdentification and Risk Assessment (HIRA).It helps identify unsafe acts and behaviourvisible on site, calculation of the riskassociated with it and enables correctiveaction to eliminate / reduce the hazard tobe prioritized. The workshop trains linemanagers in plants in hazard hunting andrisk assessment through theoretical aswell as practical sessions.

AcAcAcAcActivitiestivitiestivitiestivitiestivitiesThe workshop activities involve thefollowing:

� The types of hazards and their potentialfor injury

� Method of identifying the range ofhazards within the operation

� Method of conducting a personal riskassessment

� Method to develop a comprehensive listof hazards within the operation whichrequire corrective action based onpriorities (risk)

The Hazard Profile Workshop consists of 4parts:1. Class room theoretical training2. Practical field work3. Group work with presentation of hazard

findings to the plant management4. Action plan for implementation of

controls recommended

The field work is done for 1 day. Groups (4-5Persons per group) are allocated specificareas of the plant. They identify the hazardspresent in their designated areas under the

leadership of area/department head (groupleader), note the location of each hazard,persons exposed to the hazards and controlmeasures required. Evaluation of the riskassociated with the hazards identified isdone to rank them depending on risk factor.Based on this assessment, rectificationmeasures are identified andrecommendations are presented to the plantmanagement by the participants at the endof the workshop. The Plant managementprepares an action plan and assignresponsibilities for implementing controls tominimize / eliminate the hazards identified.

RRRRResultsesultsesultsesultsesultsHazard Profile Workshops have beenconducted at all plants of ACC. During theseworkshops 8088 hazards were identified andrectified. As a result of these workshops apositive cultural change has been observedin the perspective of the line managerstowards managing the hazards present intheir operational areas.

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8.5 Health Care

Each of our townships has well-equippedhealth care centres that are mini-hospitalswith qualified medical staff, the latest inbasic diagnostic equipment and facilitiesincluding ambulance and referrals withreputed hospitals for specialised

treatment. In several locations, we sharethese facilities with members of the localcommunity. At other places, the companyprovides mobile health services toadjoining villages and conducts regulardiagnostic health camps focused on

general medicine as well as specialailments and diseases such as Mother-child health care, Cancer detection,Hepatitis, Tuberculosis, Eye check-up, andDiabetes.

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ACC volunteered to lend a hand in thenational effort to combat the HIV/AIDSwhich is recognized as being one of thecountry’s major public health issues.

The company first announced aWorkplace policy for HIV/AIDS thatguarantees the fundamental humanrights of employees affected by this virus,while enunciating concern for theirtreatment. The policy includes awarenessprogrammes for employees, their familiesand the community around our plants –especially the high-risk groups amongthem.

Next we set up an Anti RetroviralTreatment (ART) Centre for HIV/AIDStreatment in Wadi in Karnataka, a Statewhere the virus is highly prevalent. TheWadi ART Centre opened in March 2007. Itis equipped with all basic physicalinfrastructure, medical equipment,laboratory facilities and trainedpersonnel. It has a complement of trainedmedical and para-medical staff. Thecentre provides voluntary counseling andtesting services and caters to the generalpublic living in Wadi and surroundingdistricts. It conforms to the guidelinesstipulated by the National AIDS ControlOrganisation (NACO) of Government ofIndia. Supply of vital antiretroviral drugsis arranged free of cost by NACO. TheCentre is the first outside theGovernment sector to be included in thelist of NACO’s approved ART Centres in thecountry.

An independent Trust called ACCAyushmaan Trust has been created toenable the Wadi ART center to functioneffectively. The Trustees include seniorexecutives of the company and an

8.6 Case Study: HIV/AIDS

experienced medical person from thelocal district.

ACC has entered into a tri-partitepartnership with Christian MedicalCollege (CMC) Vellore and CII’s IndiaBusiness Trust for HIV AIDS to establishthe ACC CMC Trust for Infectious Disease(ACTFID). This Trust is initially supportingan extension of the existing facility inCMC Vellore. A new building to house theACTFID ART centre is planned. CMC willput up a laboratory in this complex fortraining and advanced research on HIV /AIDS.

ACC is the first company in the privatesector to set up such treatment centresand among only a handful of companies inIndia to have a formal workplace policy forHIV/AIDS.

AwAwAwAwAwararararareness Eeness Eeness Eeness Eeness Educaducaducaducaducationtiontiontiontion“Prevention is better than cure.”Accordingly we conduct general Healthcamps and awareness programmestargeted at high-risk groups in thecommunity as well as our employees, theirfamilies and adolescent children. Condomvending facilities have been installed atthe Wadi ART centre and other places.

ACC Limited have agreed to a request from CII – IBT to lend supportas a leading corporate in the national effort against HIV/AIDS. ACCLimited have adopted a Workplace policy for HIV/AIDS based on adraft recommended by us as also established an AntiretroviralTreatment Centre at Wadi, Karnataka for treatment of HIV/AIDSpatients. This is a laudable achievement as the ACC project is thefirst initiative of its kind by private sector in India

- Shef- Shef- Shef- Shef- Shefali Chaali Chaali Chaali Chaali Chaturturturturturvvvvvedi, Diredi, Diredi, Diredi, Diredi, Dirececececector & Head – Social Detor & Head – Social Detor & Head – Social Detor & Head – Social Detor & Head – Social Devvvvvelopmenelopmenelopmenelopmenelopmenttttt

InitiaInitiaInitiaInitiaInitiativtivtivtivtives & Healthcares & Healthcares & Healthcares & Healthcares & Healthcare, Ce, Ce, Ce, Ce, Confonfonfonfonfederederederederederaaaaation of Indian Industrtion of Indian Industrtion of Indian Industrtion of Indian Industrtion of Indian Industryyyyy

3838383838

AwAwAwAwAwararararareness sessions with the help of chareness sessions with the help of chareness sessions with the help of chareness sessions with the help of chareness sessions with the help of chartststststs, posters, posters, posters, posters, posters, demo ma, demo ma, demo ma, demo ma, demo materials.terials.terials.terials.terials.

1. ACC Employees and their families

2. Contract Workers in & around Wadi

3. Villagers in and around Wadi

4. School/College Students

5. People Living with HIV/AIDS (PLHA)

6. People in the high risk category (CSW/MSW)

AwAwAwAwAwararararareness cum Health Checkeness cum Health Checkeness cum Health Checkeness cum Health Checkeness cum Health Checkup Cup Cup Cup Cup Camps in the villages in and aramps in the villages in and aramps in the villages in and aramps in the villages in and aramps in the villages in and around ound ound ound ound WWWWWadi.adi.adi.adi.adi.

1. Villagers



PrPrPrPrPresenesenesenesenesentatatatatations on Htions on Htions on Htions on Htions on HIVIVIVIVIV/////AIAIAIAIAIDS in difDS in difDS in difDS in difDS in difffffferererererenenenenenttttt Schools & C Schools & C Schools & C Schools & C Schools & Colleges.olleges.olleges.olleges.olleges.


ObserObserObserObserObservvvvvaaaaation of tion of tion of tion of tion of WWWWWorld AIorld AIorld AIorld AIorld AIDS DaDS DaDS DaDS DaDS Dayyyyy







VVVVVolunolunolunolunoluntartartartartary Cy Cy Cy Cy Counseling & ounseling & ounseling & ounseling & ounseling & TTTTTesting Cesting Cesting Cesting Cesting Cenenenenentrtrtrtrtre (e (e (e (e (VVVVVCTCTCTCTCTC)C)C)C)C)






AnAnAnAnAnti Rti Rti Rti Rti Rétrétrétrétrétrooooovirvirvirvirviral al al al al TTTTTrrrrreaeaeaeaeatmentmentmentmentmenttttt (AR (AR (AR (AR (ARTTTTT)))))

1. Persons diagnosed with HIV/AIDS in the ART Centre with CD-4 count less than 200.

ManagemenManagemenManagemenManagemenManagementtttt of Oppor of Oppor of Oppor of Oppor of Opportunistic Inftunistic Inftunistic Inftunistic Inftunistic Infececececections (tions (tions (tions (tions (OI’OI’OI’OI’OI’sssss)))))

. People Living with HIV/AIDS (PLHA)

FFFFFollow up of Prollow up of Prollow up of Prollow up of Prollow up of Pre ARe ARe ARe ARe ART PT PT PT PT Paaaaatientientientientientststststs

1. Persons diagnosed with HIV/AIDS in the ART Centre with CD-4 count more than 200.

ManagemenManagemenManagemenManagemenManagementtttt of H of H of H of H of HIV Disease & its rIV Disease & its rIV Disease & its rIV Disease & its rIV Disease & its regular fegular fegular fegular fegular follow upollow upollow upollow upollow up.....


A typical awA typical awA typical awA typical awA typical awararararareness is ceness is ceness is ceness is ceness is conduconduconduconduconducted as per a plan described belowted as per a plan described belowted as per a plan described belowted as per a plan described belowted as per a plan described below.....

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AmitAmitAmitAmitAmit – fr – fr – fr – fr – from tears to cheersom tears to cheersom tears to cheersom tears to cheersom tears to cheersAmit was like any other boy of nine, livingwith his parents and brother. One day hismother sent him on an errand to a shopin an adjoining town. Taking a short cut,as little boys are wont to do, he dartedacross the railway track and jumped tocatch a running train. But alas he lost hisgrip and slipped.

His feet were badly mowed by the train.His grief-stricken parents rushed him tothe nearest hospital - the one in ACCJamul. There Dr J Y Ganu, Sr Manager-Health Services, took imme-diate steps toresuscitate the child who was in direshock and blood splattered. Under heavysedation, he was transported in thecompany’s ambulance to a bigger hospitalin the city of Bhilai. The injury was seriousand the doctors had to take a painfuldecision to amputate his right foot andmost of the left foot to save his life.

Amit’s father could not afford the fees atthis city hospital and brought him back

8.7 Case Study: Life saving assistance

to ACC Jamul hospital. There began aslow healing process under Dr Ganu’swatchful treatment and care withregular dressing of his wounds, adequatenutritionand a daily programme of motivation.Dr M Rajashekara performed thenecessary skin grafting while Dr M LNema and Dr G R Banerjee spent timewith Amit for daily physiotherapy.

Such a calamity would unsettle an adult.But Amit is no ordinary boy. Everyday hereceived lessons from school and hishomework books were also correcteddaily. Gradually the brave little boy beganto move around on a wheel chair and

soon learnt how to ambulate on crutches.The children of ACC Middle School Jamularranged to get him a set of the famousJaipur feet. At long last, Amit donned theJaipur Feet specially made for him. Nowhe is mobile and active again - back to hischeerful self, carrying out his normalactivities at school, home and also theplayground. Amit’s father Mr HemantVerma works as a contract labour inJamul.

Amit’s is a powerful story - a rare real lifestory full of hope, grit and inspiration.forboth legs. ACC agreed to bear the cost forShashikumar’s treatment. NowSashikumar walks again without support.

A Helping handA Helping handA Helping handA Helping handA Helping handA similar tragedy befell 16 year old Shashikumar, son of Mr Gyanmitra, a machineattendant in ACC Wadi. Shashikumar slipped from a train while traveling from Wadi toGulbarga, to attend college. He was rushed to a hospital in Hyderabad where doctorshad to amputate both his legs below the knee. After initial treatment, he wasrecommended the use of artificial limbs for both legs. ACC agreed to bear the cost forShashikumar’s treatment. Now Sashikumar walks again without support..

4040404040

Our overall business strategyincorporates our CSR agenda thatidentifies the community living aroundour cement plants as one of our majorfocus groups for whom the companyaims to make comprehensive plans toaddress their over arching issues andchallenges such as enhancingemployability, providing education,

8.8 CSR Strategy

healthcare, capacity building andcreating basic rural infrastructure. Thesecond focus group comprises regulatoryauthorities with whom we pledge tocooperate to address issues of concern tosociety such as the environment, landuse, employment practices and customersatisfaction. Thus our strategy is toenhance the company’s reputation by

upgrading the standard and quality oflife of the community around our plantsas also to improve the environment inwhich we operate.

The key focus areas identified by us arealso of public concern in India. Thus ourinterventions can be said to be alignedwith the national priority.

4141414141

ACC was amongst the earliest companiesin the country to have an independentdepartment dedicated to ruraldevelopment and village welfareactivities, as part of the company’svillage welfare scheme launched in 1952.The Rural Development Department hada team of professionals comprising socialscientists, agriculturists, civil engineers,horticulturists, medical officers andsocial workers. The Company was forcedto disband this team two decades ago onaccount of acute financial stringency.

However the spirit of communitydevelopment was kept alive and thecompany conducted its CSR agenda withthe function entrusted as an additionalresponsibility to Plant Heads and otherexecutives. The system workedsatisfactorily as it helped integratecommunity development closely withthe Company’s main business.

A new CSR Department was introducedin ACC in 2006. The Company’sCorporate Communications Department

has been expanded to include CorporateSocial Responsibility as an independentfunction. We have put in place a neworganizational structure for CSR andinducted experience and trainedprofessionals to coordinate this work atregional and plant levels while retainingthe spirit of volunteering andparticipation from employees ofmainstream functions. Recruitment tofill in these vacancies is still going on andwe expect to complete the process bymid 2008.

8.9 CSR Organization

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The rural community around many of ourplants comprises the weakest sections ofrural India with no access to basicamenities. Tribal people also form part ofthe neighbourhood. We have a longhistory of undertaking a range of activitiesmeant to raise the quality of life and livingconditions of the under-privileged andbackward classes in the vicinity of ourplants and mines. At most of our plants weextend educational and medical facilitiesfor the local populace.

With a new team of dedicated CSRcoordinators being posted at all our majorplants, we are strengthening andstreamlining our agenda for communitydevelopment and engagement at each ofour locations. Our new approach is moreholistic and comprises the followingtypical steps:

A. Rapid Assessment includingstakeholder analysis

B. Needs Assessment - study and reportC. Identifying local partners & NGO’s for

engagementD. Training and coaching in different areas

i. Self-developmentii. Quality of living - hygieneiii. Healthiv. Capacity building - participation in

village institutions, livelihoodgeneration, enhancing trade skills

E. Linkages – identifying and formalizingbackward and forward linkages inproduction, employment, fundmobilization and marketing.

F. Making an Action Plan for targetcommunities

G. Implementation of Action Plan.H. Monitoring and evaluation

The new approach brings a sharp focus on

8.10 Community Development

capacity building and livelihoodgeneration, particularly for the youth andwomen. The main objective of thisprogramme is to make the communityself-reliant.

Measuring EMeasuring EMeasuring EMeasuring EMeasuring Effffffffffececececectivtivtivtivtiveness:eness:eness:eness:eness: We appreciatethe importance of measuring theeffectiveness of our communitydevelopment work. Accordingly we areundertaking an impact analysis based onfeedback obtained from representatives ofthe local community on the utility of ourdevelopment schemes. In addition, wehave received valuable guidance from ourcounterparts in the Holcim group to use anew tool devised by them, called the SocialEngagement Scorecard, it attempts aparticipative qualitative assessment of theimpact and efficacy of individualcommunity development schemes. Wehave already been inducted into using this

4343434343

“In the course of the study, well being analysis of the villages was conducted with men andwomen groups in selected villages. The exercise was used as a tool to develop anunderstanding on the community perceptions on their socio-economic condition anddeveloping indicators for each category which, were agreed upon regarding various levelsof well being and factors which affect their well being. All families in the villages wereclassified into three locally defined and agreed categories of well being. In the Balloh villagethey were categorised into five categories. In each village, the well being analysis was doneas a 20 year comparative, before initiation of the ACC project and the current situation.

PPPPPoorooroorooroorestestestestestDaily wage labourerNo land holding or 1

Bigha or lessTruck helpersMine labourerNo employmentPhysically challengedHealth problem

PPPPPoorooroorooroorLand holding up to

2 to 3 BighaTwo wheeler ownerSmall business

RichRichRichRichRichTruck ownersGovernment ServiceLand holding up to 5 or

10 BighaBusinessmanContractor in ACC PlantCar ownerTruck owner

Prior to the initiation of the ACC project, 4 families were well off, which has currently risento 21. There is a strong perception amongst communities that their well being hasconsiderably improved after ACC interventions. A Harijan family of Bater village claimedthat after the initiation of the ACC project their status of living has improved and they havelived a more respectable life than earlier. At present, the majority of families, which were inthe poorer sections, have been moved into the middle array of ladder.

The key factors responsible for this change have been higher employment opportunitiesprovided and land compensation package provided by ACC project. The opening of privatesector companies like A.C.C Gagal, and the concomitant employment increased the socio-economic status of the people over all these years.

CCCCCaaaaategortegortegortegortegoryyyyy 20 20 20 20 20 YYYYYrs befrs befrs befrs befrs beforororororeeeee NowNowNowNowNow

Rich 3.7% 18.2%

Middle 45.9% 55.3%

Poor 49.5% 25.3%

Poorest 1.9% 1.2%

process and plan to measure schemes ofsignificance at four plants this year andcomplete the remaining exercise by theclose of 2009.

WWWWWell-being Analysisell-being Analysisell-being Analysisell-being Analysisell-being AnalysisWe are currently undertaking communityneeds assessments at all our plants.Combined with this study we are alsoconducting an impact analysis of our

interventions in these locations which arebased on perceptions of the localcommunity. We reproduce an extract fromsuch a study carried out by Partners inChange in some villages near our Gagalplant in Himachal Pradesh in 2006. Thisextract shows how the establishment ofthe Gagal cement plant impacted the livesof the local people.

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In 2006 it was decided to undertakeCommunity Needs Assessment studies atall our Plants to help us devise effectivecommunity development programmes.We decided to retain the services ofleading Social Science institutes and CSRconsultants in respect of the larger Plantswhilst at smaller ones we planned rapidassessment studies using our owninternal team of professionals.Accordingly detailed studies have beenundertaken at four Plants so far. Thestudy at Gagal was conducted by PartnersIn Change. Tata Institute of SocialSciences (TISS) have studied thecommunity at Bargarh in Orissa andChaibasa in Jharkhand.

8.11 Community Needs Assessment

Another leading NGO, DevelopmentAlternatives is undertaking the study atWadi Plant. At the time of writing thisReport, we have completed rapidassessments at two other Plants. We aimto complete the entire exercise by 2009.These studies are giving us useful insights

into the development of the community,their demographic profile and theircurrent needs. All these assessmentshave been done using the participatoryresearch approach in close interactionwith the local community and otherstakeholders.

“ACC has brought Barmana on the map of India. The variousdevelopment activities carried out by ACC has set an example forall industries in the region. ACC has enabled us to give bettereducation to our next generation and hence better standard ofliving”

- R- R- R- R- Ramlok Bharamlok Bharamlok Bharamlok Bharamlok Bhardwdwdwdwdwaj, Senior Raj, Senior Raj, Senior Raj, Senior Raj, Senior Residenesidenesidenesidenesidenttttt of Bha of Bha of Bha of Bha of Bhater village,ter village,ter village,ter village,ter village,

near Gagal, Himachal Prnear Gagal, Himachal Prnear Gagal, Himachal Prnear Gagal, Himachal Prnear Gagal, Himachal Pradeshadeshadeshadeshadesh

4545454545

Expenditure on the Company’s social andcommunity related initiatives areaccounted separately as the budget forCorporate Social Responsibility or CSRbudget. We have had to align andstandardize accounting and budgeting ofCSR expenses with our new accountingand reporting format in the SAPenvironment. Hitherto, the budgetingprocess was based on a summation ofactivity wise expenditure and outlayneeded for approved projects and schemesat each plant and others based on the localcommunity’s priorities, exigencies andtheir complexity. That approach ensuredavailability of funds especially in earlieryears when the Company’s financialcondition was not satisfactory.

8.12 Expenditure on CSR

CCCCCorpororpororpororpororporaaaaate Social Rte Social Rte Social Rte Social Rte Social Responsibilityesponsibilityesponsibilityesponsibilityesponsibility

AcAcAcAcActivitytivitytivitytivitytivity 20072007200720072007 20062006200620062006

Rs MillionsRs MillionsRs MillionsRs MillionsRs Millions Rs MillionsRs MillionsRs MillionsRs MillionsRs Millions

CSR Infrastructure 6.7 1.1

Providing education for society’s future 12.8 63.5

Supporting sustainable community development 11.4 4.8

Building infrastructure for livable communities 64.4 35.8

Others 27.1 17.4

Grand Total 122.4 122.6

In 2007 we adopted a new approach tobudgeting for overall CSR expenditurewhich was linked to a percentage of profitbefore tax, subject to a minimum baselevel. Profit before tax offers a fairyardstick for sharing profit among keystakeholder groups – including

government which receives Tax as itsshare. The actual expenditure will bebased on merits of each individualproposal. The classification of expensesshown here is as adapted from thepractice followed by the Holcim group.These figures are un-audited.

4646464646

A.A.A.A.A. EmploEmploEmploEmploEmployyyyyeeseeseeseesees� Full time Employees – Local Workers, Outsiders, Mgt Staff� Employees’ families and their dependent residents are included as employees� Temporary and casual workers

BBBBB..... Neighbours aNeighbours aNeighbours aNeighbours aNeighbours attttt F F F F Facacacacactortortortortoryyyyy, c, c, c, c, colonolonolonolonolony and minesy and minesy and minesy and minesy and mines� Original land owners – oustees, relocated, resettled, rehabilitated� Neighbours immediate – adjoining and abutting colony, factory and mines� Neighbours distantThese are listed individual Villagewise, so we identify which villages are important.

C.C.C.C.C. CustomersCustomersCustomersCustomersCustomers� Local customers individual - small retail purchases� Local non-trade customers

DDDDD..... DealersDealersDealersDealersDealers, Suppliers and ser, Suppliers and ser, Suppliers and ser, Suppliers and ser, Suppliers and service prvice prvice prvice prvice proooooviders and other associaviders and other associaviders and other associaviders and other associaviders and other associatestestestestes� ACC’s authorized cement Dealers and other retailers� Transporters – from local community� Transporters – from outsiders� Local suppliers

E.E.E.E.E. Opinion LOpinion LOpinion LOpinion LOpinion Leaderseaderseaderseaderseaders� Influential Individuals� Community leaders� Community elders,� Influential citizens� Important local office bearers� Local politicians

FFFFF..... GoGoGoGoGovvvvvernmenernmenernmenernmenernmenttttt & L & L & L & L & Local Administrocal Administrocal Administrocal Administrocal Administraaaaationtiontiontiontion� District officials and administration� State Government officials� Central Government officials� Representatives of regulatory & statutory compliance bodies

G.G.G.G.G. OthersOthersOthersOthersOthers� NGO’s� Local activists� Media

8.13 Stakeholder Engagement

Our business plan encourages closecoordination with our principalstakeholders. All community initiatives areundertaken with the advice of selectedrepresentatives from the local communityas well as local administration and otherinfluencer groups. Each Plant has a teamof such persons whose advice is invaluablein formulating and implementingdevelopment schemes. It is planned to

induct these people formally into theCompany’s Community Development teamand give them the name of CommunityAdvisory Panels.

StakStakStakStakStakeholder Analysis:eholder Analysis:eholder Analysis:eholder Analysis:eholder Analysis: A stakeholderanalysis is being done afresh at each of ourlocations based on a format suggested byHolcim. The exercise is done as acollaborative effort of different groups of

people. It begins with drawing astakeholder map that differentiatesbetween primary and secondarystakeholders and their “proximity” to thecompany. Stakeholders are identified interms of their order of importance, theirdisposition to ACC and the influence.theycan wield on our community programmes.A detailed list of our stakeholders mappedby is shown here.

Sub-groups Of Stakeholders

A. EmployeesB. Neighbours at Factory, colony and minesC. CustomersD. Dealers, Suppliers and service providers and other associatesE. Opinion Leaders – Influential Individuals - community elders, influential citizens, important local office bearersF. Government & Local AdministrationG. Others

Major Stakeholder Groups

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Ladies Clubs in ALadies Clubs in ALadies Clubs in ALadies Clubs in ALadies Clubs in ACCCCCC : C : C : C : C : Every plant in ACChas traditionally had an informalassociation of ladies predominantly fortheir social and recreational activities.These Clubs have been contributing by wayof organized voluntary work in the areas ofschool activities, literacy drives, healthcamps, blood donation drives, donations,relief measures as well as empowermentprogrammes for women. The Ladies Clubsparticipate in tree plantation campaignsand promote cultural activities.

We have now, for the first time, attemptedto integrate these laudable socialvolunteering efforts of the ACC LadiesClubs into the company’s overall CSR plan.

AAAAACCCCCC AHC AHC AHC AHC AHEEEEEAD AD AD AD AD (or Association for Health,Education And Development) is the namegiven to the CSR chapter of Ladies Clubs

representing the social volunteering andcommunity work being done by thesewomen of ACC. The programmessupported by ACC AHEAD focus onhygiene, women’s empowerment throughcapacity building and livelihoodgeneration, education and trainingthrough a Learn & Earn model. Ladies Clubmembers display a strong propensity forvolunteerism in these specific areas andalso demonstrate commitment andcompetence. The ACC AHEAD chapter ateach of our locations has encouragingsuccess stories. The challenge in mostcases is the creation of linkages to supportsales outlets, livelihood and incomegeneration.

At Jamul, the Jamul Ladies Club hassuccessfully organized women of the

Kherda village to make gloves needed byworkers in the packing section of ourplant. Cloth and thread is supplied free ofcharge to each woman and the gloves arepurchased from them at an agreed rate.Each woman is able to make an averageof about 10 pairs of gloves a day. The goalfor the Jamul Ladies Club is how to makethis a self-financing enterprise.

At Chaibasa, the Ladies Club is operatinga Tailoring school for local women since1992. The school conducts courses intailoring, cutting and embroidery of six-month duration. The current session is the21st with 34 trainees, comprising adultwomen and girls, mostly from rural areasnear Chaibasa. Some of the graduates ofthis school have reported regular monthlyincomes of Rs 2000 to 3000.

4848484848

The Company is actively seekingpartnerships with NGOs, government andother agencies to help create synergies forour target community particularly by wayof providing experience in micro-finance,capacity building and the creation ofincome generating employment. We haveidentified several NGOs in the country andhave commenced engagement with them.

Sustainable CSustainable CSustainable CSustainable CSustainable Community Deommunity Deommunity Deommunity Deommunity Devvvvvelopmenelopmenelopmenelopmenelopmenttttt :A sustainable community developmentprogramme has been finalized for thebenefit of the populace around our WadiPlant. This comprises a set ofcomprehensive interventionsconceptualized by DevelopmentAlternatives who have considerableexperience in this area. The programme isdesigned to enhance economic growth,well-being and self-reliance of the peoplein Wadi town and nearby villages throughthe building of local institutional andhuman capacities. The time-bound planspread over three years targets thecreation of local enterprise-basedlivelihoods, healthier habitats withadequate community physicalinfrastructure, household services andvillage institution building.

With a view to attain overall developmentof the area, DA aims to synchronize ourprogramme with other developmentschemes planned and approved for theregion. DA seeks to harness additionalresources by forging alliances with localadministration, state governments andother NGOs working in this territory toleverage their resources and programmes.

This project will be among the mostcomprehensive and well structuredcommunity development programmesimplemented by the company. The projectis spread over a period of three years andwill help enhance the reputation andvisibility of ACC through improvements inthe standard of living and quality of theenvironment around Wadi.

8.14 Partnerships

Sustainable Housing & RSustainable Housing & RSustainable Housing & RSustainable Housing & RSustainable Housing & Rurururururalalalalal

InfrInfrInfrInfrInfrastrucastrucastrucastrucastructurturturturtureeeeeWe have signed a memorandum ofunderstanding with DevelopmentAlternatives to set up a Centre of Excellencethat will collaborate with other like mindedorganizations and work together with themto develop and offer practical solution-based knowledge products and services inthe areas of housing and ruralinfrastructure that are economically,socially and environmentally sustainable.The centre will help address imminent andfuture challenges of housing and ruralinfrastructure by providing innovationsupport, capacity building and outreachservices to the construction industry and toenable the creation of livelihoodopportunities and provide support to smallrural and semi-urban entrepreneurs in thefield of rural habitat and infrastructure. It ishoped that this collaboration will makesignificant contribution in promoting use ofsustainable materials and demonstratingsustainable habitat technologies in housingand rural infrastructure.

Sustainable CSustainable CSustainable CSustainable CSustainable ConstruconstruconstruconstruconstructiontiontiontiontionWe are partnering with Holcim Foundationfor Sustainable Construction to give wide

publicity to the Holcim Global Awardscompetition in India. These are intended tofelicitate designs for SustainableConstruction which means building in amanner that conserves resources and issocially, economically, environmentally,functionally and aesthetically balanced tomeet today’s needs without compromisingthe ability of future generations to meettheir own needs. We are hoping we getgood participation from India consideringour large pool of talented architects andengineers. We have attempted to reachthese groups directly throughadvertisements in trade journals andpresentations to trade associations andschools of engineering and architecture.

We also decided to help promote theconcept of sustainable construction in Indiain partnership with the Holcim Foundation.In a first step, we have extended financialsupport along with Holcim Foundation towhat we expect to be the most exemplarysustainable building project in India – theheadquarters building of DevelopmentAlternatives, a reputed non-governmentalorganization. The building wasinaugurated last month by the ChiefMinister of Delhi.

4949494949

While the global economy appears to bevolatile with signs of a slowdown, Indiashows a healthier macro economic outlook,even after its GDP growth forecasts havebeen moderated. The domestic economy ischaracterized by generally favourableconditions with rising income levels andconsumption led growth. These signs augurwell for infrastructure industries andbuilding materials like cement, steel andaluminium. We expect construction activityin the country to be brisk notably in housingand infrastructure sectors.

We foresee that cement industry willexperience higher degrees of competition.The availability of cost effective fuel andenergy sources (notably coal), andtransportation will continue to pose seriouschallenges. Cement is among the highesttaxed items in India and is likely to remainso. Consequently the industry will face costpressures that will need greater levels ofoverall efficiency, productivity and costcompetitiveness.

9 Looking Ahead

Steep escalations in the cost of major rawmaterials, energy and fuel will acceleratethe quest for alternative fuels and rawmaterials. Limestone reserves which areconcentrated in limited geographical areaswill come under pressure from theambitious capacity expansionprogrammes that are underimplementation. As environmental laws inthe country tighten, the industry will needto focus even more on processes thatpromote and safeguard the environmentand natural ecological balance.

Rising industrial production means thatoverall energy and power consumptionwill also grow steeply. Total CO2

emissions will therefore swell in similarmagnitude. But we will see a favourableimpact in emissions from the campaignfor climate change mitigation and widerawareness of sustainability issues.

Installed capacity of the Indian cementindustry is likely to nearly double in the

next five to seven years which will leadto an overall increase in gross CO2

emissions. However, we foresee thatspecific CO2 emissions will decline as aresult of good practices such as thepromotion of blended cements,alternative fuels, renewable energysources and more energy-efficienttechnologies.

With the creation of more jobopportunities, we expect employeeattrition rates to rise. This will also putpressure on average remunerationswhich are quite likely to rise steeply.

Expectations of the community livingaround our cement plants and mineswill also mark a significant change,mainly because of a growing number ofyouth population. The most criticalassistance they will need is theavailability of better higher educationand the creation of sustainablelivelihoods

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10. Road Map for 2009

OrOrOrOrOrganizganizganizganizganizaaaaationtiontiontiontion: To strengthen CSR and environment management functions.

PPPPPolicyolicyolicyolicyolicy: To formulate and adopt policies for Human Rights and Charities & donations.

CCCCCoorooroorooroordinadinadinadinadination:tion:tion:tion:tion: Constitution of CSR/SD committee to coordinate reporting and target setting in CSR & SD matters.

MaMaMaMaMaterialityterialityterialityterialityteriality: : : : : Validate internal matrix for external stakeholders using third party verification.

DaDaDaDaData:ta:ta:ta:ta: To streamline CSR/SD Data collation and reporting.

Sustainability rSustainability rSustainability rSustainability rSustainability reporeporeporeporeporttttt: To release next report in 2010 for the year 2009.

Strategy

VVVVVendor apprendor apprendor apprendor apprendor appraisalaisalaisalaisalaisal for sustainability performance.

Sustainable cSustainable cSustainable cSustainable cSustainable construconstruconstruconstruconstructiontiontiontiontion – to establish Centre for Excellence in Sustainable Housing and Rural Infrastructure in partnership withDevelopment Alternatives.

Economic

ElecElecElecElecElectrical Enertrical Enertrical Enertrical Enertrical Energggggyyyyy: Reduce 2.5% in specific energy consumption over the year 2007

CCCCCononononontinuous Emission Monitoringtinuous Emission Monitoringtinuous Emission Monitoringtinuous Emission Monitoringtinuous Emission Monitoring SSSSSystem:ystem:ystem:ystem:ystem: To install Online measurement of SOx, NO

x and VOC in one of the plant and review its

performance.

Emissions: Emissions: Emissions: Emissions: Emissions: To measure and report emissions every year.� CO

2 : to reduce 2.5% in specific CO

2 emission over the year 2007

� Dust: To maintain emissions less than statutory norms and reduce specific dust emission by 2.5% over the year 2007.� SO

x: Norm of 500 mg/Nm3 proposed by CPCB draft regulation accepted.

� NOx: Norm of 1000mg/Nm3 proposed by CPCB draft regulation accepted.

EmissionsEmissionsEmissionsEmissionsEmissions: Heavy metals, dioxins & furans: To maintain emissions below CPCB/State Pollution Control Board regulations.� Fugitive air emission: improve ambient air quality as per new statutory norms.� To reduce respirable particulate matter to 150 μg/m3 in ambient air.

Kiln ESP’s to be converted to Bag Houses/New Bag House Bag Houses/New Bag House Bag Houses/New Bag House Bag Houses/New Bag House Bag Houses/New Bag House for 5 kilns in 2008.

To provide waste management solutions through ccccco-pro-pro-pro-pro-processingocessingocessingocessingocessing from all ACC plants to surrounding industries.

TTTTTotal wotal wotal wotal wotal waste caste caste caste caste co-pro-pro-pro-pro-processed ocessed ocessed ocessed ocessed of 0.4 millions tonnes by 2009 including biomass, waste derived fuels, fuel rejects, industrial non hazardousand hazardous waste.

To install infrinfrinfrinfrinfrastrucastrucastrucastrucastructurturturturture fe fe fe fe for cor cor cor cor co-pro-pro-pro-pro-processingocessingocessingocessingocessing waste materials in all the plants

PlanPlanPlanPlanPlantatatatatation ftion ftion ftion ftion for bio-massor bio-massor bio-massor bio-massor bio-mass – to plant 5,00,000 trees

Launch of GeocyGeocyGeocyGeocyGeocycleclecleclecle brand for waste management services

Maintain leadership in utilizutilizutilizutilizutilizaaaaation of flytion of flytion of flytion of flytion of fly-ash,-ash,-ash,-ash,-ash, slag and phospho-gypsum.

Bio divBio divBio divBio divBio diversityersityersityersityersity: : : : : To assess our impact on flora and fauna around plant and mines.

WWWWWaaaaater managementer managementer managementer managementer managementtttt – achieve zero waste and self sufficiency

OH&SOH&SOH&SOH&SOH&S – Zero fatality (2008: LTIFR – 0.76 & LTISR – 28.95 � 2009: LTIFR – 0.61 & LTISR – 23.16 � Note:Note:Note:Note:Note:Targets for the Year 2009 will bereviewed based on the achievements of Year 2008).

Environment

CCCCCommunity Needs Assessmenommunity Needs Assessmenommunity Needs Assessmenommunity Needs Assessmenommunity Needs Assessmenttttt - To be completed at all plants by 2009

Improve Quality of lifQuality of lifQuality of lifQuality of lifQuality of lifeeeee for employees, particularly at plant townships.

MeasurMeasurMeasurMeasurMeasure efe efe efe efe effffffececececectivtivtivtivtivenessenessenessenesseness of 70% of CSR programmes using Holcim’s Social Engagement Scorecard model

PPPPPararararartnershipstnershipstnershipstnershipstnerships with NGO’s: to identify and engage for issues such as livelihood generation, capacity building and women’s empowerment.

TTTTTrrrrraining: aining: aining: aining: aining: To impart sustainability training and awareness to key persons.

Human rHuman rHuman rHuman rHuman resouresouresouresouresourcescescescesces: to strengthen employment practices

Sustainable livlivlivlivlivelihoodelihoodelihoodelihoodelihood generation – to identify and facilitate plant wise opportunities in vocational guidance and income generatingschemes.

HHHHHIV /IV /IV /IV /IV /AIAIAIAIAIDSDSDSDSDS programme – to strengthen awareness programmes at all plants and measure effectiveness & coverage.

Social

5151515151

This is the first Corporate SustainableDevelopment Report produced by ACCLimited. It covers all Units of the Companybut is limited to cement business. Cementconstitutes more than 95 per cent of ACC’sbusiness and hence this Report should beconstrued as being broadly representativeof the Company as a whole. Details of theCompany’s Cement Manufacturing Processare available on the Company’s website.ACC’s Ready Mix Concrete business whichwas reorganized into a wholly ownedsubsidiary company from January 2008has not been addressed in this Report.

FFFFFrrrrramewamewamewamewamework: ork: ork: ork: ork: We have used the frameworkprescribed by the G3 guidelines of theGlobal Reporting Initiatives which wasreleased in October 2006. The structure ofthe Report and data collation wasaccordingly prepared on this basis.Wherever appropriate we have addedother relevant achievements andexperiences.

FFFFFormaormaormaormaormat: t: t: t: t: Information is presented in threebroad categories of Economic,Environment and Social performance. TheCompany’s accounting period is thecalendar year, January to December. Whilethe period of this Report is stated ascalendar year 2007, we have incorporated

11 Methodology and GRI Content Index

data pertaining to 2006 for purposes ofcomparison. We have also added otherolder and relevant information. Whereveravailable we have sought to use publishedinformation from our Annual Report. Inother cases, data has been specificallycollected for this Report.

DaDaDaDaData cta cta cta cta collaollaollaollaollation: tion: tion: tion: tion: The Companyimplemented an ERP system which wentlive in February 2007. We faced difficultiesin collecting information which did notfind place in the Company’s existingdatabase. This exercise has helped usidentify strengths and weaknesses of ourdatabase. We have been able to single outshortfalls in information which we willaddress before the next Report is prepared.Every effort has been made to allow forfrank disclosure. More information isavailable on the Company’s websitewww.acclimited.com. A soft copy of theentire Report is uploaded on this websiteunder the section called “SustainableDevelopment”. Additional information maybe made available on request.

Global CGlobal CGlobal CGlobal CGlobal Compacompacompacompacompact: t: t: t: t: ACC is a signatory to theUnited Nations Global Compact. OurCommunication On Progress (COP) inrespect of Global Compact Principles maybe seen on the Company’s website under

the section “Corporate SocialResponsibility”.

VVVVViewiewiewiewiews : s : s : s : s : The comments of certain externalprofessionals which are featured in thisReport are not based on a study of thisReport but comprise observations basedon their perceptions about specificbusiness processes. Every effort has beentaken to ensure that information dataincluded in this Report is based onpublished or verified material. However,we have not had this Report verified.

CurrCurrCurrCurrCurrency and units : ency and units : ency and units : ency and units : ency and units : All financial valuesare expressed in Indian Rupees. In somecases, numbers are expressed in termscalled lakhs or crores. These are Indiannumbers popular in the Indian sub-continent. One Lakh (also spelt as lac)refers to one hundred thousand or onetenth of a million while one crore refers toten million. India follows the metricsystem of measurement. The term ‘tonne’(sometimes written as ‘ton’) refers to ametric tonne or one thousand kilograms.

This Report is compiled by ACC’s CorporateCommunications and Corporate SocialResponsibility Department and approvedby a team of senior executives of thecompany.

Queries on this report may be addressedto [email protected] or

[email protected]

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5353535353

GRI Content Index

GRGRGRGRGRIIIII DescriptionDescriptionDescriptionDescriptionDescription PageGRGRGRGRGRIIIII DescriptionDescriptionDescriptionDescriptionDescription Page

CCCCCommitmenommitmenommitmenommitmenommitments to Ets to Ets to Ets to Ets to External Initiaxternal Initiaxternal Initiaxternal Initiaxternal Initiativtivtivtivtiveseseseses

4.11 Explanation of whether and how the precautionaryapproach of principle is addressed -

4.12 Externally developed economic, environment and socialcharters which the organisation endorses 52

4.13 Memberships in associations *StakStakStakStakStakeholder Engagemeneholder Engagemeneholder Engagemeneholder Engagemeneholder Engagementtttt

4.14 List of stakeholder groups 47

4.15 Basis for identification and selection of stakeholders 47

4.16 Approach to stakeholder engagement 47

4.17 Key topics and concerns raised through stakeholderengagement 45

5 ManagemenManagemenManagemenManagemenManagementtttt Appr Appr Appr Appr Approach and Poach and Poach and Poach and Poach and Perererererffffformance Indicaormance Indicaormance Indicaormance Indicaormance Indicatorstorstorstorstors

ECECECECECONOONOONOONOONOMICMICMICMICMIC

Management Approach 8

Economic Performance Indicators

EC1 Direct economic value generated 11

EC2 Financial implications and other risks and opportunitiesdue to climate change 16

EC3 Coverage of the organisation’s defined benefit planobligations *

EC4 Financial assistance received from Government -

EC5 Ratio of standard entry level wage to local minimum wage *EC6 Policy practices and proportion of locally based suppliers 10

EC7 Procedures for local hiring 31

EC8 Development and impact of infrastructure investment -

EC9 Significant indirect economic impacts -

ENVIENVIENVIENVIENVIRRRRRONMENTONMENTONMENTONMENTONMENTALALALALAL


Goals and Performance 51

Policy 15

Organisational Responsibilities 15

Training and Awareness 15

Environmental Performance Indicators

EN1 Materials used by weight or volume 15

EN2 Percentage of materials used that are recycled inputmaterials 15

EN3 Direct energy consumption by primary energy source 16

EN4 Indirect energy consumption by primary source 16

EN5 Energy saved due to conservation and efficiencyimprovements 17

EN6 Initiatives to provide energy efficient or renewable energyproducts 16

EN7 Initiatives to reduce indirect energy consumption 17

EN8 Total water withdrawal by source -

EN9 Water source significantly affected by withdrawal of water -

EN10 Volume of water recycled and reused 29

EN 11 Biodiversity

To

EN 15 25

EN16 Total direct and indirect GHG emissions by weight 18

EN17 Indirect GHG emissions by weight 18

EN18 Initiatives to reduce GHG emissions 18

1 StrStrStrStrStraaaaategtegtegtegtegy & Analysisy & Analysisy & Analysisy & Analysisy & Analysis

1.1 Statement of Chairman & CEO 3

1.2 Description of key impacts risks and opportunities 50

2 OrOrOrOrOrganisaganisaganisaganisaganisational Prtional Prtional Prtional Prtional Profileofileofileofileofile

2.1 Name of the organisation Cover

2.2 Primary brands, products, services 8

2.3 Operational structure 7

2.4 Location of organisation’s headquarters Cover

2.5 Number of countries where organisation operates *2.6 Nature of ownership and legal form *2.7 Markets served Cover

2.8 Scale of reporting organisation 11

2.9 Significant changes during reporting period 52

2.10 Awards received 55

3 RRRRReporeporeporeporeporttttt P P P P Parararararametersametersametersametersameters

Report profile

3.1 Reporting period 52

3.2 Date of most recent previous report N.A.

3.3 Reporting cycle 3

3.4 Contact point for questions 52

RRRRReporeporeporeporeporttttt Sc Sc Sc Sc Scope and Boundarope and Boundarope and Boundarope and Boundarope and Boundaryyyyy

3.5 Process for defining report content 52

3.6 Boundary of Report 52

3.7 Limitations 52

3.8 Basis for reporting on joint ventures, subsidiaries, etc -

3.9 Data measurement techniques and assumptions 52

3.10 Explanation of the effect of re-statements N.A.

3.11 Significant changes in reporting N.A.

GRGRGRGRGRI CI CI CI CI Cononononontentententententtttt Inde Inde Inde Inde Indexxxxx

3.12 Table identifying location of standard disclosures 53

AssurAssurAssurAssurAssuranceanceanceanceance

3.13 Policy and current practice regarding external assurance -

44444 GoGoGoGoGovvvvvernance, Cernance, Cernance, Cernance, Cernance, Commitmenommitmenommitmenommitmenommitmentststststs, and Engagemen, and Engagemen, and Engagemen, and Engagemen, and Engagementststststs

4.1 Governance structure 6

4.2 Whether the Chair of the highest governance body is anexecutive officer *

4.3 Number of independent and non-executive members *4.4 Mechanisms for shareholders and employees 6

4.5 Linkage between compensation and organisation’sperformance 31

4.6 Processes to avoid conflicts of interests 6

4.7 Process for determining the qualifications and expertiseof members of the highest governance body for guidingorganizational strategy, economic, environment andsocial topics 6

4.8 Internally developed statements of mission or values,codes of conduct, and principles relevant to economic,environment and social performance *

4.9 Procedures for overseeing, identification and managementof economic, environment and social performanceincluding risks and opportunities 6

4.10 Processes for evaluating the highest governance body’sperformance -

* = visit* = visit* = visit* = visit* = visit w w w w wwwwwwwwwww. acclimited.c. acclimited.c. acclimited.c. acclimited.c. acclimited.com link om link om link om link om link titled Sustainable Detitled Sustainable Detitled Sustainable Detitled Sustainable Detitled Sustainable Devvvvvelopmenelopmenelopmenelopmenelopmenttttt

N.A. = Not applicableN.A. = Not applicableN.A. = Not applicableN.A. = Not applicableN.A. = Not applicable

GRGRGRGRGRIIIII DescriptionDescriptionDescriptionDescriptionDescription PageGRGRGRGRGRIIIII DescriptionDescriptionDescriptionDescriptionDescription Page

EN19 Emissions of ozone depleting substances 18

EN20 NOX, SOX and other emissions 18

EN21 Water discharge by quality and destination -

EN22 Weight of waste by type and disposal method *EN23 Number and volume of significant spills N.A.

EN24 Weight of transported, imported or exported treatedhazardous waste N.A.

EN25 Size, protected status and biodiversity, value of waterbodies, and related habitats affected by discharge ofwater and runoff 25

EN26 Initiatives to mitigate environmental impacts 29

EN27 Percentage of products sold and packaging materialsreclaimed -

EN28 Value or fines for non compliance with environment laws -

EN29 Environmental impact of transporting products andmaterials -

EN30 Total environment protection expenditure and investment -

SOSOSOSOSOCCCCCIAL PERIAL PERIAL PERIAL PERIAL PERFORMFORMFORMFORMFORMANCANCANCANCANCE IE IE IE IE INNNNNDICDICDICDICDICAAAAATTTTTORORORORORSSSSS

Labour practices and decent work 31



Policy 31

Organisational Responsibility 7


Monitoring and Follow-up 31

Performance Indicators

LA1 Total workforce by employment type 31

LA2 Total number and rate of employee turnover 31

LA3 Benefits provided to full time employees 31

LA4 Percentage of employees covered by collective bargaining *LA5 Minimum notice period regarding operational changes *LA6 Percentage of total workforce represented in formal

health and safety committees 31

LA7 Rate of injury, occupational diseases, loss days etc 35

LA8 Education, training, counseling programmes and healthrisk related programmes 33

LA9 Health and safety topics covered in agreements with tradeunions *

LA10 Average hours per training, per year, per employee 33

LA11 Programmes for skill management and learning 33

LA12 Percentage of employees receiving performance reviews *LA13 Composition of governance bodies and breakdown of

employees according to gender, age group, and minoritygroup membership 31

LA14 Ratio of basic salary of men to women 31

HUHUHUHUHUMMMMMAN RIGHTAN RIGHTAN RIGHTAN RIGHTAN RIGHTSSSSS

Management Approach -

Goals and Performance -

Policy 51

Human Rights Performance Indicators

HR 1 Investment and Procurement Practices

to 3 -

HR4 Number of incidences of discrimination and action taken -

HR5 Freedom of Association and Collective bargaining 32

HR6 Child Labour 32

HR7 Operations identified as having risks for forced andcompulsory labour -

HR8 Percentage of security personnel trained in organizationalpolicies concerning Human Rights -

HR9 Number of violations involving indigenous rights -

SOSOSOSOSOCCCCCIIIIIETYETYETYETYETY



Policy 41



Monitoring and follow up 43

Society PSociety PSociety PSociety PSociety Perererererffffformance Indicaormance Indicaormance Indicaormance Indicaormance Indicatorstorstorstorstors

SO1 Nature and effectiveness of programmes 43

SO2 Percentage of units analysed for risks related to corruption -

SO3 Percentage of employees trained in anti-corruption policies -

SO4 Action taken in response to corruption -

SO5 Participation in public policy development and lobbying -

SO6 Value of financial contributions to political parties -

SO7 Number of legal actions for anti-competitive behaviour -

SO8 Value or fines and non-monetary sanctions fornon-compliance with laws and regulations -

PRPRPRPRPRODUCT RESPODUCT RESPODUCT RESPODUCT RESPODUCT RESPONSIONSIONSIONSIONSIBBBBBIIIIILITYLITYLITYLITYLITY





Product Responsibility Performance Indicators -

PR1 Lifecycle stages of products in which health and safetyimpacts are assessed -

PR2 Incidence of non-compliance with regulation and codesconcerning health and safety impacts -

PR3 Type of product and service information required byprocedures -

PR4 Incidence of non-compliance concerning product labeling -

PR5 Practices related to customer satisfaction 9

PR6 Programmes for adherence to laws relating to marketingcommunication -

PR7 Non-compliance with regulations concerning marketingcommunications -

PR8 Number of substantiated complaints regarding breach ofcustomer privacy -

PR9 Value or fines for non-compliance with laws concerning theprovision and use of products -----

5454545454

Absolute grAbsolute grAbsolute grAbsolute grAbsolute gross emissions - oss emissions - oss emissions - oss emissions - oss emissions - Total amount of CO2 emitted from

cement production activities

Absolute netAbsolute netAbsolute netAbsolute netAbsolute net emissions - emissions - emissions - emissions - emissions - Gross emissions minus credits forindirect savings such as use of waste as fuel

AlternaAlternaAlternaAlternaAlternativtivtivtivtive Fe Fe Fe Fe Fuels and Ruels and Ruels and Ruels and Ruels and Raw maaw maaw maaw maaw materials (AFR) - terials (AFR) - terials (AFR) - terials (AFR) - terials (AFR) - Inputs to clinkerproduction derived from waste streams contributing energy and/or raw material.

CCCCCapacity buildingapacity buildingapacity buildingapacity buildingapacity building - The process of creating an enablingenvironment for social development with appropriate policy andlegal framework, human resource development, communityparticipation and strengthening of local systems, institutions andbodies in which all stakeholders participate.

CCCCCastor - astor - astor - astor - astor - a type of tree, which produces the castor bean that yieldscastor oil. This oil is one of hard oils, where the oil content in theseed is relatively high. Castor oil’s numerous chemical derivativesare “renewable sources, bio-degradable and eco-friendly.”

CCCCCemenemenemenemenementtttt - - - - - Cement is a building material made by grindingcalcined limestone and clay to a fine powder. It acts as the bindingagent when mixed with sand, gravel or crushed stone and waterto make concrete.

CCCCCemenemenemenemenementitious matitious matitious matitious matitious material - terial - terial - terial - terial - A substance which when mixed withwater forms a paste that subsequently sets and hardens at roomtemperature.....

ClinkClinkClinkClinkClinker - er - er - er - er - An intermediate product in cement manufacturingproduced by decarbonizing, sintering, and fast-cooling groundlimestone.

ClinkClinkClinkClinkClinker fer fer fer fer facacacacactor - tor - tor - tor - tor - The percentage of clinker in cement

CCCCCommunity Advisorommunity Advisorommunity Advisorommunity Advisorommunity Advisory Py Py Py Py Panelanelanelanelanel - A formal way of collaborating withthe community via a panel of 10–12 members representing thecompany and community. Its main aim is to enable a two-waydialogue for communicating with the community.

CCCCCommunity needs assessmenommunity needs assessmenommunity needs assessmenommunity needs assessmenommunity needs assessmenttttt - A systematic process to acquirean accurate understanding of a community’s needs and prioritiesin the context of its economic and social development.

CCCCConcroncroncroncroncrete - ete - ete - ete - ete - A building material produced by mixing cement, waterand aggregates. Cement acts as a binder. The average cementcontent in concrete is about 15%.

12 Glossary

CCCCCo pro pro pro pro processing - ocessing - ocessing - ocessing - ocessing - The act of adapting an existing industrial processin a single combined operation.whereby certain so-called ‘waste’materials may be put to use as alternative fuel or raw material incement kilns, dryers and captive power plants.

CCCCCorpororpororpororpororporaaaaate Social Rte Social Rte Social Rte Social Rte Social Responsibility (esponsibility (esponsibility (esponsibility (esponsibility (CSR) - CSR) - CSR) - CSR) - CSR) - The commitment ofbusiness to contribute to sustainable development, working withemployees, their families, the local community, and society atlarge to improve their quality of life.

EEEEEccccco-o-o-o-o-efefefefefficiency - ficiency - ficiency - ficiency - ficiency - Reduction in the resource intensity of production,i.e. the input of materials, natural resources and energy comparedwith the output: essentially, doing more with less.

FFFFFocus grocus grocus grocus grocus groupoupoupoupoup - A form of qualitative research, which involvesinterviews and interaction with a representative sample ofcommunity or population segment.

FFFFFossil fuels - ossil fuels - ossil fuels - ossil fuels - ossil fuels - Non-renewable carbon-based fuels traditionallyused by the cement industry, including coal and oil.

Global CGlobal CGlobal CGlobal CGlobal Compacompacompacompacompacttttt - - - - - A UN initiative to encourage global businessesto adopt ten principles covering Human Rights, Labour Standards,Environment and Anti-corruption.

Global RGlobal RGlobal RGlobal RGlobal Reporeporeporeporeporting Initiating Initiating Initiating Initiating Initiativtivtivtivtive (e (e (e (e (GRGRGRGRGRI)I)I)I)I): An International frameworkrecommended for reporting progress against SustainableDevelopment. G3 refers to the latest guidelines launched inOctober 2006.

JaJaJaJaJatrtrtrtrtrophaophaophaophaopha - A genus of plants and trees amenable to bio-dieselproduction. Easy to cultivate, its fruit produces seeds containingupto 40% oil. The fruit and seeds serve as replacement fuels.

Kiln - Kiln - Kiln - Kiln - Kiln - Large industrial oven for producing clinker used in themanufacture of cement. In this report, “kiln” always refers to arotary kiln.

LLLLLostostostostost time injur time injur time injur time injur time injury - y - y - y - y - A work-related injury after which the injuredperson cannot work for at least one full shift/full working day.

Millennium DeMillennium DeMillennium DeMillennium DeMillennium Devvvvvelopmenelopmenelopmenelopmenelopmenttttt Goals Goals Goals Goals Goals - A UN Declaration signed in2000 comprising 8 International Human Development Goals to beachieved by 2015.

OccupaOccupaOccupaOccupaOccupational Health and Saftional Health and Saftional Health and Saftional Health and Saftional Health and Safety (ety (ety (ety (ety (OH&S) - OH&S) - OH&S) - OH&S) - OH&S) - Policies and activitiesto promote and secure the health and safety of employees,subcontractors, third parties and visitors.

5555555555

OrOrOrOrOrdinadinadinadinadinarrrrry Py Py Py Py Pororororortland Ctland Ctland Ctland Ctland Cemenemenemenemenementtttt ( ( ( ( (OPOPOPOPOPC) - C) - C) - C) - C) - Cement that consists ofapproximately 95 % ground clinker and 5 % gypsum.

PPPPPororororortland Ptland Ptland Ptland Ptland Pozzozzozzozzozzolona Colona Colona Colona Colona Cemenemenemenemenementtttt (PP (PP (PP (PP (PPC) - C) - C) - C) - C) - Cement obtained byintergrinding a pozzolanic material such as fly-ash with clinkerand gypsum, or by blending ground pozzolana with Portlandcement.

RRRRReady mix ceady mix ceady mix ceady mix ceady mix concroncroncroncroncrete ete ete ete ete - Concrete that is specifically manufacturedfor delivery to the customer’s construction site in a freshly mixedand plastic or unhardened state.

Slag - Slag - Slag - Slag - Slag - A non-metallic product consisting essentially of glasscontaining silicates, alumino-silicates of lime and other bases

and is obtained as a waste by-product in the manufacture of pigiron in a blast furnace or electric furnace. Granulated slag is usedin the manufacture of Portland Slag Cement (PSC).

Specific grSpecific grSpecific grSpecific grSpecific gross emissions - oss emissions - oss emissions - oss emissions - oss emissions - The gross amount of CO2 emitted per

tonne of cement.

Specific netSpecific netSpecific netSpecific netSpecific net emissions - emissions - emissions - emissions - emissions - The net CO2 emissions per tonne of

cement.

StakStakStakStakStakeholder dialogueeholder dialogueeholder dialogueeholder dialogueeholder dialogue - A stakeholder dialogue is a structuredway to solicit input from company stakeholders. Normallystakeholders are invited to comment on specific issues orproblems.

5656565656

ISO 9001: 2000 Quality ManagemenISO 9001: 2000 Quality ManagemenISO 9001: 2000 Quality ManagemenISO 9001: 2000 Quality ManagemenISO 9001: 2000 Quality Managementtttt S S S S System fystem fystem fystem fystem for Markor Markor Markor Markor Marketingetingetingetingeting

and Distribution of Cand Distribution of Cand Distribution of Cand Distribution of Cand Distribution of Cemenemenemenemenementtttt Ac Ac Ac Ac Activities tivities tivities tivities tivities certification awarded toACC’s Mumbai Regional Marketing Office (now SU-Mumbai) inJanuary 2006 by TUV, an ISO Audit agency. This is the firstmarketing office in ACC to receive such certification and also thefirst marketing office in the Indian cement industry.

CCCCConsumer Superbronsumer Superbronsumer Superbronsumer Superbronsumer Superbrand 2006-07: and 2006-07: and 2006-07: and 2006-07: and 2006-07: ACC awarded Superbrandstatus - the only company in the cement industry - bySuperbrands India Council.

ISISISISIS/ISO 9001: 2000 Quality Managemen/ISO 9001: 2000 Quality Managemen/ISO 9001: 2000 Quality Managemen/ISO 9001: 2000 Quality Managemen/ISO 9001: 2000 Quality Managementtttt S S S S System Cystem Cystem Cystem Cystem Cererererertificatificatificatificatificationtiontiontiontion

13 Awards And Accolades: 2006 & 2007

Golden PGolden PGolden PGolden PGolden Peaceaceaceaceacock Eock Eock Eock Eock Eccccco-Innoo-Innoo-Innoo-Innoo-Innovvvvvaaaaation Awtion Awtion Awtion Awtion Awarararararddddd 20082008200820082008 awarded to ACC’sAFR Business by the award Jury, under the Chairmanship of JusticeP N Bhagwati, former Chief Justice of India and Member, UNHuman Rights Commission.

Golden PGolden PGolden PGolden PGolden Peaceaceaceaceacock Eock Eock Eock Eock Eccccco-Innoo-Innoo-Innoo-Innoo-Innovvvvvaaaaation Awtion Awtion Awtion Awtion Awarararararddddd won by ACC Chanda at8th World Congress on Environment Management, PalampurHimachal Pradesh in June 2006.

GrGrGrGrGreeneeneeneeneentech Entech Entech Entech Entech Envirvirvirvirvironmenonmenonmenonmenonmenttttt E E E E Exxxxxcellence Awcellence Awcellence Awcellence Awcellence Awarararararddddd - BrBrBrBrBronzonzonzonzonzeeeee won by ACCSindri in 2006 for significant contribution in the field ofenvironment protection.

NaNaNaNaNational Awtional Awtional Awtional Awtional Awararararard fd fd fd fd for Fly Ash Utilizor Fly Ash Utilizor Fly Ash Utilizor Fly Ash Utilizor Fly Ash Utilizaaaaation 2005:tion 2005:tion 2005:tion 2005:tion 2005: Conferred on ACCjointly by three ministries of government - Ministry of Power,Ministry of Environment & Forests and Department of Science &Technology. The award recognizes ACC as being the largest user offly-ash.

ISO 14001 fISO 14001 fISO 14001 fISO 14001 fISO 14001 for Pror Pror Pror Pror Producoducoducoducoduction of Quality Ction of Quality Ction of Quality Ction of Quality Ction of Quality Cononononontrtrtrtrtrolled Rolled Rolled Rolled Rolled Ready Mixeady Mixeady Mixeady Mixeady Mixededededed

CCCCConcroncroncroncroncrete in Pete in Pete in Pete in Pete in Pollution Follution Follution Follution Follution Frrrrree Enee Enee Enee Enee Envirvirvirvirvironmenonmenonmenonmenonmenttttt awarded to ACC RMXFaridabad in June 2006 by Benchmark an affiliate of JAS ANZAustralia. It is India’s first RMX Plant to get this certification.

NaNaNaNaNational Awtional Awtional Awtional Awtional Awararararard fd fd fd fd for Eor Eor Eor Eor Exxxxxcellence in cellence in cellence in cellence in cellence in WWWWWaaaaater Managementer Managementer Managementer Managementer Managementtttt 2006 2006 2006 2006 2006awarded to ACC Tikaria by Confederation of Indian Industry. ACCTikaria was adjudged as Excellent Water Efficient Unit at nationallevel amongst leading industries.

NaNaNaNaNational Enertional Enertional Enertional Enertional Energggggy Cy Cy Cy Cy Conseronseronseronseronservvvvvaaaaation Awtion Awtion Awtion Awtion Awararararardsdsdsdsds for Energy efficiencyin Indian cement industry won by ACC Gagal in January 2006

received by ACC Tikaria from the Bureau of Indian Standards inJanuary 2006

ISISISISIS/ISO 9001: 2000 Quality Managemen/ISO 9001: 2000 Quality Managemen/ISO 9001: 2000 Quality Managemen/ISO 9001: 2000 Quality Managemen/ISO 9001: 2000 Quality Managementtttt S S S S System Cystem Cystem Cystem Cystem Cererererertificatificatificatificatificationtiontiontiontionreceived by ACC Damodhar from the Bureau of Indian Standards inJanuary 2006

IMC RIMC RIMC RIMC RIMC Ramkrishna Bajaj Naamkrishna Bajaj Naamkrishna Bajaj Naamkrishna Bajaj Naamkrishna Bajaj National Quality Awtional Quality Awtional Quality Awtional Quality Awtional Quality Awararararardsdsdsdsds - ACC Gagalawarded the commendation certificate – 2007

IMC RIMC RIMC RIMC RIMC Ramkrishna Bajaj Naamkrishna Bajaj Naamkrishna Bajaj Naamkrishna Bajaj Naamkrishna Bajaj National Quality Awtional Quality Awtional Quality Awtional Quality Awtional Quality Awararararardsdsdsdsds - ACC Wadi wonthe Special Award for Performance Excellence – 2007

Environmental Performance

for best improvement in thermal energy and bestimprovement in energy performance in manufacture ofblended cements in 2004-05. The awards are instituted byNational Council for Cement and Building Materials andpresented by the Director Department of Industrial Policy andPromotion, Ministry of Commerce and Industry.

‘V‘V‘V‘V‘Viswiswiswiswiswakakakakakarma arma arma arma arma TTTTTrrrrrophophophophophy’y’y’y’y’ awarded to ACC Gagal Limestone Minesfor overall outstanding performance in safety andenvironment protection.

MEMC (Mines EnMEMC (Mines EnMEMC (Mines EnMEMC (Mines EnMEMC (Mines Envirvirvirvirvironmenonmenonmenonmenonmenttttt & Miner & Miner & Miner & Miner & Mineral Cal Cal Cal Cal Conseronseronseronseronservvvvvaaaaation)tion)tion)tion)tion)

TTTTTrrrrrophophophophophy y y y y won by ACC Kymore Mehgaon & Bamangaon Mines indifferent categories such as Air Quality Management, Top soilmanagement, waste dump management, communitydevelopment and aesthetic beauty.

GrGrGrGrGreeneeneeneeneentech Gold Awtech Gold Awtech Gold Awtech Gold Awtech Gold Awararararard Fd Fd Fd Fd For Cor Cor Cor Cor Cemenemenemenemenementtttt Industr Industr Industr Industr Industryyyyy – instituted byGreentech Foundation won by ACC Jamul for outstandingachievements in environment protection and pollution controlin 2007.

10th F10th F10th F10th F10th F.L.L.L.L.L. Smidth Ener. Smidth Ener. Smidth Ener. Smidth Ener. Smidth Energggggy Awy Awy Awy Awy Awararararard 2007: d 2007: d 2007: d 2007: d 2007: A combined state levelaward of Madhya Pradesh and Chhatisgarh awarded to ACCKymore for energy conservation.

Good GrGood GrGood GrGood GrGood Green Goeen Goeen Goeen Goeen Govvvvvernance Awernance Awernance Awernance Awernance Awararararard 2007:d 2007:d 2007:d 2007:d 2007: A National LevelAward organized by SRISHTI Publications, received by ACCJamul in non metallurgical Category. The award waspresented to ACC by Mrs. Sheela Dixit, Hon’ble Chief Ministerof Delhi.

Economic Performance

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NaNaNaNaNational Saftional Saftional Saftional Saftional Safety Awety Awety Awety Awety Awararararard 2005d 2005d 2005d 2005d 2005 won by ACC Sindri as runner-up foroutstanding performance in industrial safety for achieving“Lowest Average Weighted Accident Frequency Rate” for threeconsecutive years.

Social Performance

Good CGood CGood CGood CGood Corpororpororpororpororporaaaaate Citizte Citizte Citizte Citizte Citizen Awen Awen Awen Awen Awarararararddddd 2005-062005-062005-062005-062005-06 by Bombay Chamber ofCommerce & Industry presented to ACC in September 2006 “inrecognition of its corporate achievements and ongoing endeavorsin improving the quality of life of the community”.

FFFFFirstirstirstirstirst in Small Sa in Small Sa in Small Sa in Small Sa in Small Savings Acvings Acvings Acvings Acvings Activities: tivities: tivities: tivities: tivities: ACC Lakheri was recognized byGovernment of Rajasthan in June 2006 for promoting smallsavings among employees and local community through

promotion drives and opening recurring deposit bank accounts.This is the fourth time the plant has received the award in theState.

Global Challenger to wGlobal Challenger to wGlobal Challenger to wGlobal Challenger to wGlobal Challenger to world’orld’orld’orld’orld’s leading Cs leading Cs leading Cs leading Cs leading Companiesompaniesompaniesompaniesompanies - ACC namedin S&P Global Challengers class of 2007, the world’s leading indexprovider, in a listing of 300 mid-size companies expected toemerge as challengers to the world’s leading blue-chip companies.

OH&S AWARDS

BestBestBestBestBest Ov Ov Ov Ov Overererererall Safall Safall Safall Safall Safety Pety Pety Pety Pety Perererererffffformance Awormance Awormance Awormance Awormance Awarararararddddd awarded to ACC Kymoreat Mines Safety Week in November 2007 under the aegis ofDirector of Mines Safety.

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Views & Reviews

The first Sustainable Development Report from ACC gives a comprehensive overview of thecompany’s commitment to the three elements of the “triple bottom line”, economic,environmental and social performance. The best evidence of ACC’s dedication is its keennessto implement many of the tools available in the Holcim Group and the externalacknowledgement shown by the many awards received over the past two years.

DrDrDrDrDr. Barbar. Barbar. Barbar. Barbar. Barbara Dubach, Senior a Dubach, Senior a Dubach, Senior a Dubach, Senior a Dubach, Senior VVVVVice Price Price Price Price Presidenesidenesidenesidenesident, CSR and SD Ct, CSR and SD Ct, CSR and SD Ct, CSR and SD Ct, CSR and SD Coorooroorooroordinadinadinadinadination, Holcim Grtion, Holcim Grtion, Holcim Grtion, Holcim Grtion, Holcim Group Supporoup Supporoup Supporoup Supporoup Supporttttt L L L L Ltdtdtdtdtd

ACC is committed towards the three pillars of sustainable development - economic,environmental and social performance. The waste co-processing services extended by ACCto waste generators is built around the concept of sustainability and is based on the idealsof industrial ecology. ACC is dedicated in implementing the principles of co-processing aselucidated in The Holcim – GTZ Guidelines on Co-processing Waste Materials in CementProduction. Currently ACC is providing waste management services in the country drawingupon the waste co-processing experiences of Holcim worldwide.

DrDrDrDrDr. Jur. Jur. Jur. Jur. Jurgen Pgen Pgen Pgen Pgen Porst, Senior Advisor Gorst, Senior Advisor Gorst, Senior Advisor Gorst, Senior Advisor Gorst, Senior Advisor GTTTTTZZZZZ-A-A-A-A-ASEM, HazSEM, HazSEM, HazSEM, HazSEM, Hazararararardous dous dous dous dous WWWWWaste Managemenaste Managemenaste Managemenaste Managemenaste Managementtttt

ACC has a long tradition of care of the communities around its plants across India.Therefore I was very pleased to note that the CEO and senior executives of the companyhad scheduled a special session at their last annual executive conference to discusssustainable development and the responsibility ACC has to society going beyond itstraditional philanthropic activities. The CEO and team discussed ways to understand andmeasure the impact the company’s operations have on the environment and society. Theyreviewed their progress as well as changes required in their organisation to makeimprovements towards becoming a role model in the broader paradigm of sustainabledevelopment. I wish them all the best.

Arun MairArun MairArun MairArun MairArun Maira, Senior Advisora, Senior Advisora, Senior Advisora, Senior Advisora, Senior Advisor, , , , , The Boston CThe Boston CThe Boston CThe Boston CThe Boston Consulting Gronsulting Gronsulting Gronsulting Gronsulting Group (India),oup (India),oup (India),oup (India),oup (India),

I commend ACC on the publication of its 1st Sustainability Report, a significant milestone inthe Company’s seven decades of leadership in the cement industry. In the context of acountry whose citizens now have a Right to Information Act, the disclosure by ACC of itssocial and environmental performance in alignment with the guidelines of the GlobalReporting Initiative (GRI) will be an encouraging signal to several stakeholder groups as wellas to other companies who are beginning to better understand the multiple benefitsinternal and external, of adopting a reporting and disclosure process. It will be useful forACC to consider innovative mechanisms to ensure that this Report is made accessible to aswide a group of its stakeholder groups as possible, and to invite their participation inadding value to future editions of the report.

VVVVViririririraf Mehaf Mehaf Mehaf Mehaf Mehta, Chief Eta, Chief Eta, Chief Eta, Chief Eta, Chief Exxxxxecutivecutivecutivecutivecutive - Pe - Pe - Pe - Pe - Pararararartners in Changetners in Changetners in Changetners in Changetners in Change

5959595959

I read the draft report with interest. ACC has been a good employer and takes care of its employees. Afeeling of family bonding exists for generations. If you visit the Company’s Clubs you find nodifferentiation between officers and workers. Many new initiatives taken by the Company must beappreciated such as Waste Management, Sustainable Construction and ACC AHEAD. It is good that ACCis now part of the Holcim Group. This association will be very useful to our Company. I am impressed bythe HIV/AIDS programme. The focus on training and education is significant - there should be morecentres like SMTI at other locations. The Company must associate with Government wherever possiblein training and livelihood generation for the community. I feel trade unions should be increasinglyinvolved as a partner in Social Responsibility matters.

N Nanjappan, GenerN Nanjappan, GenerN Nanjappan, GenerN Nanjappan, GenerN Nanjappan, General Secral Secral Secral Secral Secretaretaretaretaretaryyyyy, Indian Na, Indian Na, Indian Na, Indian Na, Indian National Ctional Ctional Ctional Ctional Cemenemenemenemenementtttt WWWWWorkorkorkorkorkers’ers’ers’ers’ers’ F F F F Federederederederederaaaaationtiontiontiontion

At Toyota we needed environment-friendly technology to dispose hazardous wastes. We adhere to‘zero landfill policy’ due to our stewardship in sustainable development. ACC and Toyota’scommitment to sustainable development prompted us to enter into an agreement for disposal ofwastes generated from our unit. We worked closely with ACC, taking care of safety concerns, andconducted trial burn of all the wastes to demonstrate to the authorities that there no adverseimpacts on kiln emissions and product quality. Co-processing in cement kilns is a proven way of wastedestruction cum energy and material recovery. There is zero generation of waste by-products orresidues. We look forward to ACC as a preferred partner for taking care of our wastes responsibly andcontribute to a better tomorrow.

VVVVVijaijaijaijaijay Ky Ky Ky Ky Kumar B N , Deputy Managerumar B N , Deputy Managerumar B N , Deputy Managerumar B N , Deputy Managerumar B N , Deputy Manager-----SafSafSafSafSafety& Enety& Enety& Enety& Enety& Envirvirvirvirvironmenonmenonmenonmenonmenttttt - - - - -TTTTToyoyoyoyoyota Kirloskota Kirloskota Kirloskota Kirloskota Kirloskar Motor Privar Motor Privar Motor Privar Motor Privar Motor Privaaaaate Limitedte Limitedte Limitedte Limitedte Limited

We at Development Alternatives believe that our relationship with ACC has gained immensely bytheir openness as a strategic partner to go beyond statutory obligations to understand the needs ofboth civil society and local communities. The leadership they have demonstrated as a sociallyresponsible business has allowed us to work in tandem for the creation of value for the community,ACC, ourselves and society.

KirKirKirKirKiran Sharma, an Sharma, an Sharma, an Sharma, an Sharma, VVVVVice Price Price Price Price Presidenesidenesidenesidenesidenttttt - De - De - De - De - Devvvvvelopmenelopmenelopmenelopmenelopmenttttt Alterna Alterna Alterna Alterna Alternativtivtivtivtiveseseseses

We at HUL, were looking for suitable technology for disposing our damaged/expired stocks ofconsumer goods. Disposing the stocks present high brand & consumer safety risk due to the possibilityof the stocks proliferating into spurious market. Co-processing in cement kiln, which is internationallyacclaimed & scientifically proven technology, provides us a sustainable solution by deriving material &energy value of the material being disposed, and zero generation of waste by-products. Thus, disposalof damaged/expired stocks of consumer goods at ACC Works, through co-processing, presentsalterative fuel & raw material for the company and provides HUL with a sustainable environment-friendly option for taking care of its disposable non-hazardous products.

BakBakBakBakBakul Daul Daul Daul Daul Davvvvve, Head- Ce, Head- Ce, Head- Ce, Head- Ce, Head- Corpororpororpororpororporaaaaate Health, Safte Health, Safte Health, Safte Health, Safte Health, Safety and Enety and Enety and Enety and Enety and Envirvirvirvirvironmenonmenonmenonmenonment, Hindustan Unilet, Hindustan Unilet, Hindustan Unilet, Hindustan Unilet, Hindustan Unilevvvvver Limiteder Limiteder Limiteder Limiteder Limited

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AAAAACCCCCC LimitedC LimitedC LimitedC LimitedC LimitedRegistered OfficeCement House121 Maharshi Karve RoadMumbai 400 020, Indiawww.acclimited.com

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@ 2008 ACC Limited

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