ambuja final

8/8/2019 Ambuja Final

1/23

AMBUJA CEMENT


2/23

GROUP B1

Sampada Rahalkar

Smruti Sherlekar

Shannon Monteiro

Dhara Manek

Ankush Oberoi

Subramanian Ramanathan


3/23

FOUNDATIONS

Began its operations in 1986

The Swiss Company Holcim has a 78% stake inACIL while GACL owns 22%

Capacity built up from 0.7 Mn tonnes in 1986 to18.0 Mn tonnes at present

Vision To be Indias most admired company Mission delighted customers, inspired

employees, empowered partners, energizedsociety


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ST R AT E G YA C O MP R EHEN S I VE P LAN G U I D IN G R ESO U R CE ALL O CAT IO N TO ACH IEVE L O N G -

TE R M O R G AN I ZAT IO N G O AL S

C O MPET IT IVE ADVANTA G E

O PE R AT IN G IN SUCCE SS FUL WAYS THAT A R E D I F F ICULT TO DUPL ICATE


5/23

PORTERS VALUE CHAIN MODEL


6/23

CORPORATE INFRASTRUCTURE

First cement producers of the country to introduce anIntegrated Logistics System (ILS).

Establishment of Internal Audit Framework

Strong financials and expansion strategy throughmergers and acquisitions enabling growth

Set up own R&D facility in 1989 department to

encourage innovation

Adhering to International quality standards

Having stringent Internal Control Systems


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HUMAN RESOURCES

Granting Empowerment

Intensive Training Programs abroad

Talent Management

Maintaining a Healthy climate - The Safety

Pyramid

Environmental Initiatives


8/23

TECHNOLOGY

Project Connect

Decision MakingSystemsSAP

P

ollution ControlEquipments

Achieving 148%productivity

NewEquipments


9/23

PROCUREMENT

Basic raw materials: limestone, clay, silica and gypsum

An Australian device Surface Miner was installed in 1997which helped in procuring more limestone from a given

area

It ensured cement quality

In 1998, GACL acquired the Nadikudi (about 100 kms from

Guntur) and Proddatur (near Cuddaph) limestone mines

to enhance its presence in Southern India

A strong network of clinkerisation plants and grinding

units


10/23

PROCUREMENT

Cement-Linkages were taken off

Cheaper and better quality coal was sourced fromSouth Africa and furnace oil from the Middle East

Ambujas leading position has strengthened its

bargaining power

The companys engineers had picked up best practices

during visits to overseas plants in countries like Japan

and Australia


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OPERATIONS

Captive power plant

GACL set up captive power plants in Gujarat (40 MW)and Himachal Pradesh (12 MW) in 1998.

Rs 1.30 per kilowatt, compared to Rs 4.50 per

kilowatt

60.3% of its total power requirement


12/23

OPERATIONS

Coal production - central and eastern parts

the cement industry - western and southern parts

Transporting coal

Quality of coal

Cement companies had to decide whether to use

imported coal or substitutes like lignite, natural gasand oil.


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OPERATIONS

Imported coal

Imported better quality furnace oil

Operating costs of power plants

Consumed only 96 kwh of power per tonne of

cement against the industry average of 110-115

kwh per tonne


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OPERATIONS

Coal - 170 kg per tonne of cement, industry

average 250 kg per tonne

Ambuja Nagar plants located in the agricultural

belt of Saurashtra, groundnut husk available in

plenty

Groundnut husk, crushed sugarcane


15/23

OPERATIONS

Going beyond 100% capacity utilization

20 years old Ambujanagar plant, keeps increasing

productivity year after year

At the Mumbai terminal , handling capacity increased to100,000 tonnes as against the terminals stated capacityof 60, 000 tonnes. With no additional capitalexpenditure.

Managed to keep power bills to virtually the sameamounts they were in 1989.

Managed to cut stabilizing time from upto 18 months toa mere 3 months.


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OUTBOUND LOGISTICS

Rs 1 billion - modern ports and freight-handling

terminals at Muldwarka and Surat (south

Gujarat) and Panvel (near Bombay).

Cost of transporting cement to Bombay - Rs 400

per tonne by sea, Rs 1800 per tonne by road.

Cement moved in bulk reduced packaging costs

Savings of roughly Rs 160 million annually


17/23

OUTBOUND LOGISTICS

Far less wastage and spillage

Untouched by human hand - finest quality Many coastal markets within easy reach, became

one of the largest exporters of cement

Convenience to import coal owing to the ports

Strong focus on logistics management - reduce

finished goods inventory levels

A Mumbai dealer could obtain stocks within 8 hrs

because of the company-owned jetty where the

cement was packed at the rate of 100 tonnes/hr.


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MARKETING STRATEGY

Emphasis was on Quality

Advertising and

Publicity campaign

Improvement in Packaging by information

provided by suppliers

Stronger positioning in the housing sector in

smaller towns and rural areas over the last twodecades

FMCG approach was adopted to create a wide

retail network of small shops, down to the village

level


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MARKETING STRATEGY

Channel Excellence Programme (CEP)

Over 7000 dealerships and 20,000 retailersacross India are covered under this

model.

Initiatives are structured and packaged as

AmbujaP

arivar and AmbujaP

arivar Mahotsav.


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COST COMPARISON (08-09)

ACC AMBUJA ULTRATECH

Raw Material 454.48 333.50 335.00

Stock djustments - 104.60 43.00

Staff ost 146.85 137.60 108.00

Power& Fuel 608.76 586.90 777.00

ostof

ra

ded

ement

51.15 - -

Other xpenses 1138.21 1116.5 1081

otal ost Per onne 2399.45 2279.10 2344.00


21/23

MARKET SHARE (08-09)

21.57

18.12

18.57

7.91

10.01

7. 2

5.221.82

5.1 4. 2

ACC

Ambuja Cements

UltraTechCement

Shree Cements

India Cements

Madras Cements

Birla Corp

Prism Cement

Dalmia Cement

Binani Cement


22/23

Increase in Infrastructure

Domestic and International Prices of Coal

Increase In Freight Cost

Increase In Taxes

THE ROAD AHEAD


23/23

Thank You

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