ACC Limited, incorporated in 1936, is a member of the diversified Adani Group and stands as one of India's leading producers of cement and ready-mix concrete. With a current market capitalization of ₹36,750 crore as of recent trading data, ACC has established itself as a cornerstone of India's construction and infrastructure development over nearly nine decades.
ACC Limited is principally engaged in the business of manufacturing and selling cement and ready-mix concrete, with manufacturing facilities across India catering mainly to the domestic market. The company operates through two main segments: Cement and Ready-Mix Concrete, where the cement segment manufactures cement from clinker using raw materials such as limestone, clay, iron ore, fly ash, bauxite, and gypsum, while the Ready-Mix Concrete segment manufactures concrete in batch plants according to set-engineered mix designs.
The company's cement business represents 94% of total revenue in FY24, compared to 91% in CY19. ACC offers a comprehensive product portfolio divided into premium and affordable segments, with products including gold range items like ACC CONCRETE+XTRA STRONG, ACC F2R SUPERFAST, and ACC GOLD WATER SHIELD, alongside silver range products such as ACC SURAKSHA POWER, ACC Suraksha Power+, ACC HPC LONG LIFE, and ACC Super Shaktimaan.
ACC reported revenue of ₹21,762 crore and profit of ₹2,402 crore in recent financial results, though the company has delivered modest sales growth of 6.81% over the past five years. The cement segment's revenue grew by 31% between CY19 and FY24, driven by a 28% increase in sales volumes and a 2% rise in average sales realizations, from ₹4,973 per ton in CY19 to ₹5,092 per ton in FY24.
In the most recent quarterly performance, ACC demonstrated remarkable results in Q3 FY25, reporting a 103% year-on-year increase in profit after tax to ₹1,092 crore, driven by 21% higher volumes, cost optimizations, and premium product growth. The company's strategic focus on driving growth through higher volumes, cost optimization, and enhanced efficiencies has been complemented by strong demand for premium cement products and commitment to ESG leadership.
ACC has undergone significant expansion through strategic acquisitions, notably acquiring the remaining 55% equity stake in Asian Concretes and Cements Private Limited on January 8, 2024, making it a wholly-owned subsidiary along with its step-down subsidiary Asian Fine Cements Private Limited. The company has also acquired ACC Concrete South Limited, ACC Concrete West Limited, and other subsidiaries during FY24.
Recent infrastructure developments include the commissioning of a new grinding unit with 1.4 MTPA cement capacity at Sindri, Jharkhand in January 2021, and the expansion of Tikaria in Uttar Pradesh with additional cement capacity of 1.6 MTPA in 2022. The company has also commissioned two Waste Heat Recovery Systems with a combined capacity of 22.4 MW and scaled up dispatch to a record volume of 346 kMT in March 2023.
ACC has demonstrated its commitment to innovation through product launches such as ACC ECOMaxX - the Expert Green Concrete, an eco-friendly range of ready-mix concrete for high-performing, sustainable and circular construction, launched in 2023. The company has also launched ACC AEROMaxX, ACC Coolcrete, and ACC Bagcrete under its ready-mix concrete vertical.
In terms of sustainability, ACC has made significant strides in reducing its carbon footprint, achieving a reduction of specific CO2 emissions by 13 kg/t of cementitious material to 466 kg/t in H1 FY24. The company's strategies include optimizing its industry-leading green blended cement portfolio at 93% of total sales, minimizing thermal and electrical energy intensity, and introducing Waste Heat Recovery Systems across facilities.
ACC's promoter holding stands at 56.7%, with the company being a subsidiary of Ambuja Cements and part of the Adani Group. The management control was previously held by Swiss cement manufacturer Holcim Group from 2004 until April 2022, when Holcim announced its exit from the Indian market after 17 years of operations.
ACC has received notable recognition, being acknowledged as 'Iconic Brands of India 2023' by The Economic Times consecutively for the second year. The company is recognized as a leading player in the Indian building materials space, known for its innovative research and product development in cement and related products, with a strong reputation for setting industry benchmarks and focusing on sustainable business practices.
While the cement sector experienced modest growth of 1.5-2% during H1 FY25, cement demand is expected to rebound in Q4 FY25 as construction activity accelerates in infrastructure and housing segments. The pro-infrastructure and housing Budget 2025, along with increased government spending, is anticipated to support growth, with cement demand projected to grow in the range of 4-5% for FY25.
ACC's major competitors include Dalmia Bharat, JK Cement, The Ramco Cements, Nuvoco Vistas Corporation, Birla Corporation, JK Lakshmi Cement, and India Cements. With a market capitalization of ₹34,822 crore, ACC appears financially stable compared to its peers, whose median market cap is ₹12,450 crore.
ACC Limited continues to leverage its extensive experience, strong market position, and strategic alignment with the Adani Group to capitalize on India's growing infrastructure and construction demands while maintaining its commitment to sustainable and innovative cement solutions.
