Last time we did the strategic SWOT analysis of one of the major Indian cement companies Ambuja Cement. This time, we will take on the SWOT Analysis of ACC Limited in-depth.
ACC Limited is one of India’s largest cement makers. Lafarge Holcim is in charge of the company’s management. ACC Limited was formed by the merging of ten cement businesses controlled by Tatas, Dinshaw, Nixon, and Khataus. The infrastructure industry is in high demand all of the time. For over 80 years, ACC Limited has been synonymous with cement, building its reputation as a pioneer organization that regularly sets new benchmarks in research and innovative product expansion.
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Do you want to learn how ACC Limited became so successful in the cement industry? In this blog, we will learn about the SWOT Analysis of ACC Limited and decode the answer. Before we begin, let us learn more about ACC Limited, funding, products, financial status, and competitors.
About ACC Limited
(Neeraj Akhoury – The MD & CEO of ACC Limited, Source: IIDE Creator’s Room)
With a pan-India manufacturing and marketing presence, ACC Limited is a significant participant in the Indian construction materials field. It contributes significantly to the country’s landscape with 17 cement-producing facilities, over 90 ready-mix concrete factories, over 6,600 skilled and intelligent personnel, a vast distribution network of 50,000+ dealers and retailers, and a countrywide spread of sales offices.
The journey of ACC Limited has been dramatic since its astonishing inception in 1936 when ten cement businesses merged in an unprecedented manner. Every decade has seen the corporation take innovative initiatives in areas such as corporate governance, environmental development, and social volunteerism, in addition to cement and concrete.
|Founder||F E Dinshaw|
|No. of Employees||6,643 (2020)|
|Market Cap||Rs. 40,599.23 Crore (2021)|
|Annual Revenue||Rs. 15,975 Crore (2020)|
|Net Income/ Profit||Rs. 1,363 Crore (2020)|
Products of ACC Limited
The major products which ACC Limited has been manufacturing are:
- Bulk Cement
- Ready-mix Cement
- Blended Cement
- Premium Cement
- Portland Cement
Competitor of ACC Limited
- Ultra Tech Cement Ltd.
- Ambuja Cement Ltd.
- Shree Cement Ltd.
- India Cement Ltd.
- Heidelberg Cement India Ltd.
Now that we have assessed the background of ACC Limited, let’s delve right into the SWOT Analysis of ACC Limited.
SWOT Analysis of ACC Limited
This study focuses on the internal and external factors that can affect any company. External variables include opportunities and hazards, whereas internal variables include strengths and limitations.
It’s a planning and decision-making tool for strategic planning. It is usually more useful to conduct a SWOT analysis of ACC Limited with a specific goal in mind, such as seizing a new business opportunity or adapting to new trends.
To better understand the SWOT analysis of ACC Limited, refer to the infographics below:
So let’s start with a SWOT analysis of ACC Limited:
Strengths of ACC Limited
The first tool of SWOT is the Strengths. These are the factors that place the company at the top of the industry and make it look prospective. The strength of ACC Limited are as follows:
- CSR Activities: ACC Limited does many CSR Activities. Some of the major CSR Activities include providing high-quality education to children of employees, encouraging women from SHGs in the communities around its plant location, health and sanitization, improving livelihoods, and many more.
- No. of Plants: ACC Limited has 17 manufacturing plants whereas Ultratech, Ambuja, and others have fewer.
- Reducing Carbon Footprints: ACC Limited was one of the first Indian firms to make environmental protection a corporate goal. They’ve built this commitment into every aspect of their value chain, from mining to sales to supporting the use of alternative fuels and resources, resulting in one of the minimal carbon footprints in cement manufacturing.
- 50000+ Dealers: ACC Limited today boasts of 50000+ dealers and retailers across India. This far and wide distribution network ensure that ACC Limited reaches all corners of India.
- Awards: ACC Limited has won many awards. Some of them are National Award for Excellence in Water Management by CII, Indira Priyadarshini Vrikshamitra Award, Drona Trophy, Subh Karan Sarawagi Environment Award, and many more.
Weaknesses of ACC Limited
Weaknesses are aspects of a business or brand that should be improved. ACC Limited’s major flaws are as follows:
- Lack of Promotional Activities: Other cement manufacturing companies are taking away the market with their ads. Ambuja’s ad with the great Khali was appreciated all over. Similarly, Ultratech is taking away the market with its tagline “Engineers Ki Pasand”. Overall, ACC Limited’s production strength is solid, but still, its marketing and push strategy is mediocre.
- Only in India: ACC Limited’s footprint in India is limited, and as a result, it faces competition from Aditya Birla’s Ultratech, which exports large quantities of cement. Ultratech is enhancing its turnover by a significant percentage by exporting.
- High Transportation Cost: They have a huge transportation cost to transport cement to different retail shops. Also with the increasing fuel prices, it will further increase.
- Lack of Awareness Programs: To protect the interest of consumers, awareness programs are necessary.
- Losing Brand Equity: ACC Limited is losing its brand equity as Ultratech is gaining brand equity.
Opportunities for ACC Limited
Like weaknesses, opportunities are the areas where a company needs to focus, on improving results, increasing sales, and, ultimately, profits.
- Branding Activities: It can initiate comprehensive branding in the country, which may help them enhance brand memory and, as a result, help the brand expand as a whole. By investing in branding campaigns for one or two years, ACC Limited may easily restore market share and brand equity, and become India’s leading brand.
The best and cost-effective way to do brand campaigns is social media marketing. ACC Limited can create targeted organic & paid social media marketing campaigns to boost brand awareness, acquire quality leads and get repeat sales. If you are at the initial stages of your business then you must learn this one of the digital marketing skills to save your extra cost which might get spent if you choose traditional ways of marketing.
- Global Expansion: ACC Limited can make use of India’s market supremacy to expand to other regions of the world.
- Improving Infrastructure: One of the most huge advantages of ACC Limited is that it is a prominent brand in the cement industry, which is expanding in India owing to an increase in infrastructure demand. This need will not diminish any time soon, given the growing population and improving economic conditions.
- Increasing Demand: People are opting for more stable structures and intensive use of cement is taking place, even the government is spending heavily on infrastructure projects. Thus, this is the right time to fully tap these markets.
Threats to ACC Limited
Last, under the segment of SWOT Analysis of ACC Limited, we have the Threat. These factors are important to consider as it protects the organization from dealing with potential losses and more.
- A Huge Number of Participants: The cement industry’s high number of companies makes it difficult for ACC Limited to set a competitive price for its product.
- Threat From Global Players: It faces stiff competition in Indian markets from global players. Due to India’s rapid expansion, many new multinational cement businesses are projected to emerge in the future years, ushering in a wave of change and potentially igniting a price war.
- Price Competition: When a business engages in price competition, its bottom line suffers. The threat to ACC Limited is just the same. ACC Limited is obliged to compete on price due to the enormous number of brands offered, which has a detrimental impact on its bottom line.
- Threat From Local Players: The emergence of small players in this market may increase the competition and start malpractices, and heavy discounts to retailers. One of the challenges to ACC Limited and the business is a slew of local brands offering cheap products.
This ends our absolute SWOT analysis of ACC Limited. Let us conclude our learning below.
ACC Limited is one of the Country’s top cement producers. We discovered that ACC Limited has a unique track record of innovative research, product development, and specialized consultancy services. It has a strong and extensive network infrastructure, but brand recognition and marketing efforts are missing.
ACC Limited focuses on offering a lot of offline marketing support to its customers. Thus to conclude it can be said that ACC Limited has its branches spread all over India ACC Limited company products are profitable not only in India but also in the whole world. While talking about digital marketing, the social media presence of ACC Limited is nearly equal to null. They have not taken much effort to market their services and products so that it reaches the audience.
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We hope this blog on the SWOT analysis of ACC Limited has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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