The cement industry went through a sea of change in the last couple of decades. In many ways, leading cement players ACC and Ambuja Cements represent this paradigm shift. As such, we have provided a comparative analysis of these leading cement players. In the next few articles, we will compare the two companies on several important parameters.
Management quality
Both ACC and Ambuja Cements are now controlled by Swiss-based Holcim Group, one of the most respected cement companies in the world. However, both have had very different beginnings.
ACC is one of the oldest cement companies in India. It was born out a historic merger of 10 cement companies in 1936. Until some time back when the Aditya Birla Group consolidated its cement assets under UltraTech Cement, ACC was the largest cement manufacturer in India. In the latter part of the 20th century, ACC diversified into some other businesses and made some wasteful acquisitions. These businesses became a drag on the company's balance sheet. Between 1999 and 2000, the Tata Group sold off its entire 14.45% shareholding in ACC to subsidiary companies of Ambuja Cements. Effectively, the Ambuja Group became the single largest shareholder of ACC and took over management control. From the time Ambuja took over management control of ACC, it revamped the latter's business strategy. ACC decided to exit its non-cement businesses and focus on its main business.
Ambuja Cements, on the other hand, entered the cement industry as late as 1983. Despite being a late-comer, Ambuja managed to grow into one of the largest and most profitable cement companies in the country. What is commendable about the company's management is the fact that it is has focussed purely on its cement business and used its cash quite prudently. It has resisted venturing into new businesses. This shows that the company's leader have been very clear in their vision.
Cement capacity
As of today, both the companies have almost a similar cement capacity. Ambuja Cements has 27.35 million tonnes per annum (mtpa) of cement capacity. On the other hand, ACC is marginally ahead at 28.68 mtpa. Both Ambuja and ACC account for about 9.5% and 10% respectively of the total domestic cement industry. However, a major differentiating factor is the pace at which both companies have added additional capacity over the year. The chart below shows the cement capacities of the two companies since 1995.
Source: Company Annual Reports |
Source: Company Annual Reports |
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6 Responses to "ACC v/s Ambuja Cem: Which one is better?"
Sagar
Feb 19, 2018Acc concrete plus or Ambuja plus ...
If comare both which is the best?
Whose strength power is more
Manmohan Singh
Sep 25, 2013ACC Ltd. is the oldest company & its founder of cement industry in india. U can say "Old Is Gold"
Raj Narayan Kumar
Aug 25, 2022Acc