ACKNOWLEDGEMENT

I owe my gratitude to many people who helped and supported me during the preparation of the
minor project.
My sincere thanks to Prof Radhika Malhotra, the Faculty Guide of the project, for initiating
and guiding the project with attention and care. She has always been available for me to put
me on track from time to time to bring the project at its present form.
I am highly thankful to the Director General of the Institute for his support, motivation and
continuous efforts in providing us the better learning environment and opportunities to groom
ourselves as per the expectations of the corporate world. Without his support, it would not be
possible for us to successfully complete our projects.
I also thank all faculty members without whom this project would have been a distant reality.
Signature
(Name of the Student)- SRISHTI SUDHI PANDEY
Place: GAMMA 1, GREATER NOIDA (UP)
Date:

pg. 1
 FACULTY GUIDE CERTIFICATE

This is to certify that the work reported in the Minor Project titled on “ACC CEMENT”,
submitted by SRISHTI SUDHI PANDEY at G L Bajaj Institute of Management and
Research, Greater Noida, India, is a bonfide record of his/ her original work
carried out under my supervision. This work has not been submitted elsewhere for any other
Degree or Diploma.

(Signature of Faculty Guide)

Name: PROF RADHIKA MALHOTRA
Date:

pg. 2
 CONTENT

1.INDUSTRY ANALYSIS
2. MAJOR COMPETITORS
3. DETAIL OF ONE MAJOR COMPETITOR
4. MARKETING ANALYSIS
4.1 PRODUCT INFORMATION
4.2 PRICING DETAILS
4.3 DISTRIBUTION CHANNEL
4.4 SWOT ANALYSIS
4.5 COMPETITIVE ADVANTAGE
5. HUMAN RESOURCE ANALYSIS
5.1 CAREER OPPORTUNITIES
5.2 JOB ROLES IN ORGANIZATIONS

pg. 3
Chapter 1
INDUSTRY ANALYSIS
India is the second largest producer of cement in the world. No wonder, India's cement
industry is a vital part of its economy, providing employment to more than a million people,
directly or indirectly. Ever since it was deregulated in 1982, the Indian cement industry has
attracted huge investments, both from Indian as well as foreign investors.
India has a lot of potential for development in the infrastructure and construction sector and
the cement sector is expected to largely benefit from it. Some of the recent major initiatives
such as development of 98 smart cities are expected to provide a major boost to the sector.
Expecting such developments in the country and aided by suitable government foreign
policies, several foreign players such as Lafarge-Holcim, Heidelberg Cement, and Vicat have
invested in the country in the recent past. A significant factor which aids the growth of this
sector is the ready availability of the raw materials for making cement, such as limestone and
coal.
Market Size
Cement production capacity stood at 502 million tonnes per year (mtpy) in 2018. Capacity
addition of 20 million tonnes per annum (MTPA) is expected in FY19- FY 21.
The Indian cement industry is dominated by a few companies. The top 20 cement companies
account for almost 70 per cent of the total cement production of the country. A total of 210
large cement plants account for a cumulative installed capacity of over 410 million tonnes,
with 350 small plants accounting for the rest. Of these 210 large cement plants, 77 are located
in the states of Andhra Pradesh, Rajasthan and Tamil Nadu.
Investments
According to data released by the Department of Industrial Policy and Promotion (DIPP),
cement and gypsum products attracted Foreign Direct Investment (FDI) worth US$ 5.28
billion between April 2000 and March 2018.
Some of the major investments in Indian cement industry are as follows:

 As of December 2018, Raysut Cement Company is planning to invest US$ 700

million in India by 2022.
 During 2017-18, Ultratech commissioned a greenfield clinker plant with a capacity of
2.5 MTPA and a cement grinding facility with 1.75 MTPA capacity in Dhar, Madhya
Pradesh. The company is expecting to complete a 1.75 MTPA cement grinding
facility and a 13 MW waste heat recovery system by September 2018 at the same
location.
 JK Cement is planning to invest Rs 1,500 crore (US$ 231.7 million) over the next 3 to
4 years to increase its production capacity at its Mangrol plant from 10.5 MTPA to 14
MTPA.

Government Initiatives
In order to help the private sector companies thrive in the industry, the government has been
approving their investment schemes. Some such initiatives by the government in the recent
past are as follows:
In Budget 2018-19, Government of India announced setting up of an Affordable Housing
Fund of Rs 25,000 crore (US$ 3.86 billion) under the National Housing Bank (NHB) which
will be utilised for easing credit to homebuyers. The move is expected to boost the demand of
cement from the housing segment.

pg. 4
Road Ahead
The eastern states of India are likely to be the newer and virgin markets for cement
companies and could contribute to their bottom line in future. In the next 10 years, India
could become the main exporter of clinker and gray cement to the Middle East, Africa, and
other developing nations of the world. Cement plants near the ports, for instance the plants in
Gujarat and Visakhapatnam, will have an added advantage for exports and will logistically be
well armed to face stiff competition from cement plants in the interior of the country.Cement-
June-2019
Due to the increasing demand in various sectors such as housing, commercial construction
and industrial construction, cement industry is expected to reach 550-600 Million Tonnes Per
Annum (MTPA) by the year 2025.
A large number of foreign players are also expected to enter the cement sector, owing to the
profit margins and steady demand.

Global Production
Cement is produced in 156 countries across the Globe. During 2008, the global production
capacity of cement stood at around 2,872 million tonnes with China accounting for
approximately 1,400 million tones and India a distant second with total production of 183
million tonnes. The production of Cement is highly skewed with top ten countries together
accounting for close to 70% of total cement production. These countries account for close to
70% of total population.

pg. 5
ACC has a good track record of innovative research and specialized in consultancy services.
The company's various manufacturing units are backed by a central technology support
services centre - the only one of its kind in the Indian cement industry. Preliminary work on
the new Jamul expansion project has commenced with ground-breaking at site and ordering
out major plant equipment. Scheduled for completion in a phased manner in 2015, the project
comprises a new clinkering line of 2.79 million tonnes capacity and grinding facility of 1.10
million tonnes at Jamul. In addition, it also includes the establishment of two other grinding
plants in Eastern India, which will together enhance our capacity by 5 million tonnes of cement
per annum. The total estimated cost of this expansion is ` 3300 crore and shall be funded
through internal accruals.
The annual sales of the company have grown by 18% in FY 2012 whereas the EBITDA & PAT
margins have decreased by 3% & 4% respectively. In FY 2012, sales increased to Rs 11,358
crores which was 11% higher as compared to the previous year. The EBITDA remained almost
the same whereas the Profit after Tax reduced. Efforts have been made to reduce production
cost through improvements in clinker factor, plant performance, thermal and electrical energy
efficiencies. The reduction in Profit After Tax is on account of change in method of
depreciation from Straight Line method to Written Down Value method.

pg. 6
Chapter 2

Major competitors of ACC Cement:

The top 10 competitors in ACC's competitive set are Ambuja, UltraTech Cement, India
Cements, HeidelbergCement, Holcim, JK Lakshmi Cement, CEMEX, LafargeHolcim,
Italcementi and Shree Cement. ... ACC has 7,422 employees and is ranked 7th among
it's top 10 competitors. The top 10 competitors average 24,518.

pg. 7
Chapter 3
Ambuja Cement
ACL is a relatively young company in the industry. It begins operations in the industry.
Itbegins operations in 1986. But in the short span of 18 years, it has set a new benchmark in
everycement quality to power consumption and from marking to environment management.
Some of themain achievement of the company is listed below:1. Fastest project
commissioningThe first cement plant in Gujarat was set up in 22month as against the normal
3 years. Their secondplant in Gujarat was set up in just 13 months, a world record!!2. Fastest
stabilizationAll the cement plants have reached 100% productions within 6 months whereas
the industry norm is12 months.3. Highest productivityAmbuja cement holds distinction of
operating its plant at a very high productivity level. The Gujaratplant operates above the rated
capacity levels. E.g. the kiln of their first cement plant produces 4000tones a day as against
the rated capacity of 2500 tones.4. Lowest power and coal consumptionTheir power and coal
consumption levels are one of the lowest in the world.5. Bulk cement transportationIn 1993,
they have set up a whole new way of transporting cement. Bulk cement is transportation
bysea. It includes a dedicated port at the Gujarat plants and unloading terminal in Mumbai
and Surat.All of them fitted with mechanized conveying system. It also includes five special
cement ships. Theirpeople practice a simple philosophy
–“give a man orders and he’ll do the task
reasonably well. Butlet him set his own targets. Give him freedom and authority and his task
becomes some personnel.
mission “I can.”

Different plants, their subsidiary companies and their location.1. Ambuja Nagar
It is 40km away from Veraval in Saurashtra Gujarat. This location consists of three units
namely:
A. Ambuja B. Gajambuja-1 C. Gajambuja-2
2. Darlaghat

It is near Shimla in Himachal Pradesh with one unit.

3. Ghadchandur
It is near chandrapur in Maharashtra with one unit.
4. Ropar
It is a grinding unit in Punjab.

Their people practice a simple philosophy:

“Give a man order & he will
Do the task reasonable well. But let him set his own target, Give him freedom
&authority,
A person mission:” ‘I CAN’

VISION

Vision of the company is to be recognized at the best company in the cement industry.
Wecanachieve this only through our people. The endeavor is to attract retain adhering to
professional ethics & build a culturally diverse organization united by a common identity &
in this process strive

pg. 8
to be an “Employer of Choice.”

MISSION
My action speaks more about my company than a mere advertisement. My function, how
ever remote to the customer, ultimately leads to satisfying him. My connection to him is like
God. I may not see it, but it exists.

SIZE OF THE UNIT

Size of industry is decided on the capital investment of unit is fixed assets. The size of
industry isclassified in four type and they are as under.(1) Small Scale Industry(2) Medium
Scale Industry(3) Large Scale Industry
1. Small Scale Industry:
The investment of an industry in its fixed assets does not exceed Rs. 3crores are known as
smallscale industry.
2. Medium Scale Industry:
The investment of an industry in its fixed asset is more than Rs. 3crores but not exceed Rs.
5croresare known as medium scale industry.
3. Large Scale Industry:
The investment of any industry in its fixed assets is more than Rs. 5crores are known as
largescale industry.
“Ambuja Cement Ltd.” is large scale industry. Its total capital i
s Rs. 86croresinvestment in plant and machinery

pg. 9
Ambuja cement is one of the top three cement manufacturing companies in India. The trio at
the top includes Ultratech cement, ACC cement and Ambuja Cement. Ambuja cement has
been manufacturing and distributing cement across India since the last 3 decades and more. It
is known most for it logos which has a huge guy holding a complete building. Ambuja is
known to market its cement on the quality of its strength. Recently, the marketing campaign
of Ambuja cements which included The Great Khali in the ads was very well received.

SWOT Analysis of Ambuja Cements

Strengths in the SWOT Analysis of Ambuja Cements:

1. Leading Cement Manufacturer in India: Ambuja Cements has been one of the leading
Cement manufacturers in India. Even though there have been significant capacity
additions in the industry and a slow demand growth in India.
2. Strong dealer network: Ambuja Cements has a strong dealer network, which has
helped the company to withstand intense competition.
3. Extremely strong in west: The company has a very strong network on the west coast
which has supported sustainable strong market position in Mumbai, Surat and Cochin.
There are pockets which are covered majorly by Ambuja cement only.
4. Cost advantage through infrastructure: Ambuja has made its processes more
efficiently and soured low priced inputs through which it has been able to achieve a cost
advantage.
5. Excellent financial backing: Ambuja cements is known to be a financially sound
company. Its financial resources were further increased when HOLCIM (another major
player in infrastructure) invested in Ambuja.

pg. 10
 6. Marketing consistency: There are two ads of Ambuja which are legendary. First is the
tagline “Iss cement mein jaan hai” which caught the attention of consumers all across.
The second was the marketing campaign with the Great Khali which said that only
Ambuja cement could make homes that dont get destroyed even for khali. The brand has
picked the quality of “strength” very well and portrayed it regularly and consistently.

Weaknesses in the SWOT Analysis of Ambuja Cements :

1. Heavily dependent on Indian market: Ambuja been

geographically concentrated depending heavily on the Indian market for its revenues. In
FY2014, the company earned 99.5 percent from the Indian market.
2. Lack of product diversification: Unlike many competitors, Ambuja does not have
diversified product range. This reduces its potential to expand its market share.
3. Known more for small works: While Ultratech focuses on large contracts and huge
buildings, Ambuja is known more for repair works and hence it loses out its brand
image where the builder lobby is concerned.

Opportunity in the SWOT Analysis of Ambuja Cements :

1. High growth in Cement Industry: India is the second leading cement producer in the
world. The country’s cement production is expected to grow at high speed. This creates
an opportunity for Ambuja to tap the demand created.
2. Investment on infrastructure to grow: The investment in infrastructure is expected
and has this creates demand for cement in the country. The planning commission had
predicted an investment of $1 trillion during the 12th five-year plan.
3. Benefits due to GST: Cement Industry is going to be benefited with GST as overall
taxation going to drop from current 25 per cent to about 18 per cent. Also, logistics cost
is also to be decreased by GST.
4. Make in India: With the government’s initiatives to increase production in India,
Ambuja, being a core India company, can see many advantages.
5. Increase production: The cement industry runs on the basis of “Who can produce the
most”. As on date, Ultratech has the highest production capacity. But even Ultratech runs
out of supply at times and the demand is high. Thus, an increased production can help
the brand reach new heights.

Threat in the SWOT Analysis of Ambuja Cements :

Litigation for cartelization in the industry: After the complaints from Builders Association
of India (BAI), the Competition Commission of India (CCI) published an order to
stop cartelization in the Cement Industry.

Intense Competition: There is a lot of competition in the cement industry for Indian as well
global companies. This allows limited market share in the industry.

pg. 11
Segmentation, targeting, positioning in the Marketing strategy of Ambuja Cements –

Ambuja Cements uses segmentation variables such as income group, number of members in
the family, region, and others. It uses a mix of geographic and psychographic segmentation
variables to understand the changing needs of the industry & end customers.

Since offerings of Ambuja cement are meant for varied uses in the meta-market, therefore, it
uses differentiating targeting.

Customer benefit based positioning strategies is used by the company to highlight the features
and value of money to the customers.

Competitive advantage in the Marketing strategy of Ambuja Cements

Cost Leadership: With wide scale of operations, company has achieved cost leadership in
activities such as Manufacturing, Logistic, procurement, Supply chain management etc. which
is helping the company in being competitively ahead of its competitors.

BCG Matrix in the Marketing strategy of Ambuja Cements –

Ambuja Cement operates in business segments such as base product, Premium product
segment for the specialized industry and other related solution & services.

Since the company is the leader in most of the product segments it operates into & has bagged
many public & private company’s big-ticket tenders based on the products, therefore all its
segments are Stars in the BCG matrix.

Brand equity in the Marketing strategy of Ambuja Cements

Ambuja Cements has won various prestigious awards for its operational efficiency and social
initiatives such as National Mineral Development Corporation (NMDC) Social awareness
award 2016-17 by Federation of Indian Mineral Industries (FMI), YES Bank natural capital
award -2017, CII National Award for excellence in water management 2017.

Its innovative and simple advertisements have helped the company in increasing in TOMA (top
of mind awareness) thereby increasing the share of wallet and share of heart.

pg. 12
Competitive analysis in the Marketing strategy of Ambuja Cements

Capacity utilization plays a major role in the industry in which Ambuja Cements operates. With
Pan India Footprint of 63 million tonnes and capacity utilization of more than 70%, the
company is giving head-on competition to other players in the market.

The companies operating in the industry compete based on the factors such as reach in the
market, production capacity, brand image, price range and product portfolio.

Some of the competitors of Ambuja Cement are Prism Cements Limited, Shree Cement, The
Indian Cement and Ultratech Cement.

Market analysis in the Marketing strategy of Ambuja Cements

Rapid urbanisation, Infrastructure development, affordable housing, RERA (Real Estate

Regulatory Authority) for protecting rights of homebuyers, GST (Goods & services tax), Re-
monetization are some of the demand drivers for the Cement industry while the factors such as
labour cost, unsold inventory, seasonal demand pattern, Government regulations are some of
the factors affecting the companies operating in the industry.

Customer analysis in the Marketing strategy of Ambuja Cements –

Customers of Ambuja Cements consist of Retail as well as B2B customers such as Resellers,
distributors, architects, government bodies, and wholesalers.

Although there are channels through which customer can purchase the cement but the selection
of the right cement mostly depends on the suggestions of builders or the Masons.

PESTLE ANALYSIS

Ambuja Cement: Measuring the Value of Water case study PESTEL analysis includes macro
environment factors that impact the overall business environment – Political, Economic,
Social, Technological, Environmental, and Legal factors. ... PESTEL analysis is mainly the
assessment of macro environment factors.

Political Factors that Impact Ambuja Cement: Measuring the Value of Water

- Segregation of Political Responsibilities between Different Government Agencies – There

are numerous government agencies which reduces the risk of overwhelming pressure by one
agency. But on the flip side it does increases both time and cost of doing business and getting
certifications and clearances.

pg. 13
- Democracy & Other Democratic Institutions – According to Utkarsh Majmudar, Namrata
Rana the democratic institutions are needed to be strengthened further so that business such
as Water Ambuja can thrive in an open, transparent and stable political environment.
Strengthening of democratic institution will foster greater transparency and reduce the level
of corruption in the country.

- Regulatory Practices - The regulatory practices are streamlined with global norms which
have helped the country to improve its “ease of doing business” ranking.

- Role of Non-Government Organization, Civil Society & Protest Groups – The country has a
vibrant civil society community and Water Ambuja should build bridges with them and seek
out areas of co-operations. Civil society groups are influential not only in policy making but
also in building a society wide narrative.

- Government Regulations and Deregulations – The government is adhering to all the rules
and regulations under World Trade Organization norms. There is consistency in both policy
making and implementations of those policies.

- Judiciary Independence – In the matter of commercial and business decisions, judiciary of

the country is independent to a large extent. Business do face problem when the conflict is
between public interest and proprietary technology similar to ruling in South Africa where
government & judiciary allowed generic AIDS drug irrespective of patents of global
companies.

- Threat of Terrorist Attacks – We believe in the world of post 9/11, corporations such as
Water Ambuja have to live with operating under the shadow of a terrorist attack. The prudent
policy should be to take insurance and other types of hedging instruments to mitigate the
losses occurring because of the terrorist attacks.

- Role Local Governments Play – Local governments are highly influential in the policy
making process and implementation as most of the policies and regulations are implemented
by the local government as enforcement agencies mostly report to local government in their
own states regarding various laws.

What are Economic Factors in PESTEL / PEST Analysis

Economic factors of a country and region have a direct impact on the potential attractiveness
of a given market. Some of the economic factors that Water Ambuja should evaluate both in
the present market and one in which it wants to enter are – inflation rate, GDP growth rate,
disposable income level etc.

pg. 14
Economic Factors that Impact Ambuja Cement: Measuring the Value of Water

- Inequality Index / Ranking on Gini Index – Gini Index and level of inequality are a great
barometer for harmony and development of a society. If there is huge income inequality in
the society then the likelihood of conflict and crime increases. It can lead to uncertainty and
suppression of consumption in both short term and long term.

- Price Fluctuations in both Local and International Markets – Compare to the level of
quantitative easing in last decade the prices of Water Ambuja products and prices of overall
products have remained sticky in the US market. Water Ambuja should consider the fact that
at deficit levels of United States in an emerging economy can lead to rampant inflation and
serious risks of currency depreciation.

- Fiscal and Monetary Policies – The Republican government tax break culture has increased
the deficit and it can lead to fiscal trouble for the economy in coming years.

- Inflation Rate – The inflation rate can impact the demand of Water Ambuja products.
Higher inflation may require Water Ambuja to continuously increase prices in line of
inflation which could lead to lower levels brand loyalty and constant endeavors to manage
costs. Cost Based Pricing could be a bad strategy under such conditions.

- Consumer Disposable Income – The household income of the country has increased
constantly in the last decade and half, compare to the USA market where household income
is still below 2007 levels and not increased in real terms since early 1980’s. Water Ambuja
can leverage this trend to expand the market beyond its traditional customers by employing a
differentiated marketing campaign.

- Level of Household Income and Savings Rate – Increasing consumption and stagnant
household income in United States had led to credit binge consumption. It has decimated the
culture of savings as people don’t have enough to save. Water Ambuja needs to be careful
about building marketing strategy that is dependent on “Purchase on Credit” consumer
behavior.

- Work Force Productivity – Work force productivity in US has grown by 25-30 % in last two
decades even though the salaries are not reflecting those gains. It can enable Water Ambuja
to hire skilled workforce at competitive salaries.

pg. 15
What are Social Factors in PESTEL / PEST Analysis

Social factors such as demography trends, power structure in the society, women
participation in workforce etc have immense impact over not only the country's economy but
also on workforce talent availability and level of consumer demand.

Social Factors that Impact- Ambuja Cement: Measuring the Value of Water

- Level of Social Concerns & Awareness in Society – Higher level of social concerns in the
society often result higher consumer activism and pressure from non-governmental
organizations, & pressure groups.

- Types of Immigration & Attitude towards Immigrants – Given the latest developments such
as Brexit and Immigrant detention on Southern border of United States. Attitude towards
immigration has come under sharp focus. Water Ambuja should have capabilities to navigate
under this hyper sensitive environment.

- Attitude towards Health & Safety – The attitude towards health and safety is often reflected
in the quality of the products and cost structures of manufacturing processes. Water Ambuja
has stringent norms for health and safety norms so in emerging economies it may have to
compete with players who don’t have high cost structures that of Water Ambuja.

- Attitude towards Savings – The culture of saving in US and China is totally different where
savings rate in China is around 30% , it is well below 15% in United States. This culture of
consumption and savings impact both type of consumption and magnitude of consumption.

- Birth Rate – Birth rate is also a good indicator of future demand. USA has avoided the
European Union style stagnant economy on the back of slightly higher birth rate and higher
level of immigration.

- Education Level in Society – Education level of the society impacts both the quality of jobs
and level of income. High level of education often results in better jobs, higher income and
higher spending on complex and aspirational products.

- Nature of Social Contract between Government & Society – Before entering into a market
Water Ambuja needs to understand the nature of social contract between government and
society. For example it has been extremely difficult for US companies to enter UK health
market as UK health system is a nationalized system and everything goes through contracts at
national level.

- Power Structure in Society – Water Ambuja should carefully analyze both - What is the
power structure in the society? How it impacts the demand in the economy. For example the
power structure in US economy is slowly moving towards the older generation as that
generation has higher disposable income compare to the younger generation.

pg. 16
What are Technological Factors in PESTEL / PEST Analysis

Technology is fast disrupting business models across various industries. Some of the
technology trends that are impacting the macro environment are – developments in artificial
intelligence, use of machine learning and big data analytics to predict consumer behavior,
growing importance of platforms over service providers etc.

Technological Factors that Impact Ambuja Cement: Measuring the Value of Water

-Mobile Phone & Internet Penetration – Water Ambuja should assess the level of internet and
mobile phone penetration in the country as it will it in building a requisite business model
based on local needs and realities.
- E-Commerce & Related Infrastructure Development – As E-Commerce is critical for Water
Ambuja business model. It should evaluate the e-commerce infrastructure, technology
infrastructure etc before entering a new market.

- Technology transfer and licensing issues for Water Ambuja – laws and culture of licensing
of IPR and other digital assets should be analyzed carefully so that Water Ambuja can avoid
shakedowns and IPR thefts.

- Cost of Production and Trends – Water Ambuja should assess - What are the cost of
production trends in the economy and level of automatization. We at EMBA Pro believe that
in near future the sector most disrupted by technological innovation is manufacturing and
production.

- Empowerment of Supply Chain Partners – Water Ambuja should analyze areas where
technology can empower supply chain partners. This can help Water Ambuja to bring in
more transparency and make supply chain more flexible.

- Intellectual Property Rights and Patents Protection – Before entering new market Water
Ambuja should focus on the environment for intellectual property rights.

- Integration of Technology into Society & Business Processes – Uber failed in China
because it tried to enter before smartphone were widespread in China. Water Ambuja should
build a strategy that can integrate societal values, infrastructure, and Water Ambuja business
model.

- Level of Acceptance of Technology in the Society – Water Ambuja has to figure out the
level of technology acceptance in the society before launching new products. Often
companies enter the arena without requisite infrastructure to support the technology oriented
model

What are Environmental Factors in PESTEL / PEST Analysis

Environmental factors are fast gaining traction not only among consumers but also among
regulators and policy makers. Climate change and changing ecosystem is leading to the
extinction of more than 20% of species on the planet by the turn of this century.

pg. 17
Environmental Factors that Impact Ambuja Cement: Measuring the Value of
Water

- Influence of Climate Change – How climate change will impact Water Ambuja business
model and supply chain. For example, if the supply chain is not flexible it can lead to
bottlenecks if shipments from one part of the world are delayed because of sudden climate
shift.
- Influence and Effectiveness of Environmental Agencies – The role of environment
standards enforcement agencies is critical in safeguarding norms. But often in emerging
countries these agencies delay the process as a tactic to extract bribes. Water Ambuja should
be aware of presence of such practices in a country.

- Recycle Policies – What are the recycle policies in prospective market and how Water
Ambuja can adhere to those policies.

- Environmental Regulation Impacting Absolute Cost Advantage Dynamics in the Industry.

- Level of Consumer Activism Regarding Environmental Concerns – Water Ambuja needs to

know the level of consumer activism regarding environmental concerns is. It will help Water
Ambuja in both developing environmentally friendly products and thwarting PR stumble
blocks.

- Focus & Spending on Renewable Technologies – How much of the budget is spend on
renewable energy sources and how Water Ambuja can make this investment as part of its
competitive strategy.

- Per Capita and National Carbon Emission – What is the per capita carbon emission of the
country and what is the overall level of carbon emissions of the country. This will help in
better predicting the environment policy of the country.

What are Legal Factors in PESTEL / PEST Analysis

Legal factors often govern – conditions to enter the market, laws to operate in the market, and
procedure to resolve any dispute with other stakeholders. If the legal system is not strong then Water
Ambuja can face numerous challenges – from consumer petitions to shakedowns from authorities.

Legal Factors that Impact Ambuja Cement: Measuring the Value of Water
- Adherence to Common Law – Is the country following common law which is uniform for
all parties – whether domestic or international. If there is arbitrariness in the judicial process
then Water Ambuja can’t be sure of the judgments.
- Time Taken for Court Proceedings – Even if the country has best of the laws, it doesn’t
mean much if they can’t be enforced in a timely manner. Water Ambuja should do a primary
research regarding how much time it often takes to conclude a court case in the country given
the sort of legal challenges Water Ambuja can face.

pg. 18
- Laws regarding Monopoly and Restrictive Trade Practices – As a new player Water Ambuja
shouldn’t be worried about the monopoly and restrictive trade practices law.

- Health & Safety Laws – What are the health and safety laws in the country and what Water
Ambuja needs to do to comply with them. Different countries have different attitude towards
health and safety so it is better for Water Ambuja to conduct a thorough research before
entering the market.

- Intellectual Property Rights Protection – Water Ambuja should assess the level of protection
that intellectual property rights get under the legal system of the country.

- Business Laws – Before entering into new market – Water Ambuja has to assess what are
the business laws and how they are different from home market.

- Independence of Judiciary and Relative Influence of Government – The judiciary

independence often reflect both strength and credibility of the institutions in the country.

pg. 19
Chapter 4

MARKETING ANALYSIS OF ACC CEMENT

CHANNEL OF DISTRIBUTION
Cement in India is primarily sold through a distributor -dealer network. Total margins for
distribution channels is 17% to 18%.
Direct sales less than 2% of total sales.
Managing the distribution network and strong working relationships with distributors,
contractors etc.

Supply chain of ACC Cement.

pg. 20
Chapter 5
HUMAN RESOURCE ANALYSIS

CAREER OPPORTUNITIES
Employee Wellbeing This is a company that is often acknowledged as one of the “Best
Places to Work” in the cement industry. At ACC, we believe people are the pillars of the
company and thus must be well taken care of. We strive to create an environment where
employees realize their full potential, contribute their best and are adequately recognized and
rewarded for their efforts. From time to time the company reviews and adopts schemes that
benefit employees and thus provides them a better workplace. ACC has a large workforce
comprising experts in various disciplines and skilled persons. Referred to as the ACC Parivar,
it is predominantly Indian, representing all parts of the country and a variety of ethnic,
cultural and religious backgrounds. Its credo of being an equal opportunities employer does
not encourage the practice of compiling and reporting any information concerning a
breakdown of employees by race or minority groups. ACC employees display a strong sense
of loyalty to the Company. The employee strength is stable with no significant seasonal
variations. A new functional organization structure was introduced by the company which
came into effect from April 1, 2015, replacing the earlier regional-based structure in a smooth
swift transition. The purpose of adopting the new structure was to enable the organization to
be more collaborative, agile and streamlined in implementing strategy, harnessing internal
functional expertise to the fullest and in enhancing stakeholder value.

“The HR policy was revised and a new one was adopted

from January 1, 2015. It details out employee
compensation, pre requisites and other employee benefit
schemes.”
The HR policy was revised and a new one was adopted from January 1, 2015. It details out
employee compensation, pre requisites and other employee benefit schemes. It was designed
to attract new talent and motivate existing employees to contribute to their peak performance
levels. The new policy was released as a part of a continuous effort in the area of employee
welfare and benefits to meet the changing needs of employees. Since 2007, ACC regularly
conducted an annual “Engaging for Results” (EFR) Survey to gauge employee satisfaction. In
2015, we participated in the group’s Global Employee Engagement Survey, which was felt to
be more insightful than EFR. Maintaining the trend of high response seen in the EFR
Exercise, this survey also saw participation of a very high order at 96%; more meaningfully,
the results showed employee satisfaction at 86%. The high satisfaction score indicated that a
significant share of employees is satisfied with various work related initiatives, people
processes, training and learning opportunities. Concerted efforts have been made to achieve
diversity and deliver sustainable performance, particularly so in a gender-balanced and

pg. 21
inclusive work environment where diverse talent can contribute to superior business results.
We are progressively creating a better environment for women to work at our sites.

“All women, permanent, temporary or contractual including

those of service providers are covered under the policy.”

TOTAL
AGE GROUP Male Female
<30 1586 164
30 – 50 3871 130
>50 2579 38
TOTAL 8036 332

The Company is an equal opportunity employer and consciously strives to build a work
culture that promotes dignity of all employees. Complying with the provision of Prevention
of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013 and Rules framed therein, the Company has implemented a policy on prevention,
prohibition and redressal of sexual harassment at the workplace which is accessible through
the intranet portal. All women, permanent, temporary or contractual including those of
service providers are covered under the policy. A Sexual Harassment Resolution Committee
has been set up comprising five management staff including three women employees. In each
unit there is one nodal person to receive and forward complaints to the “First instance person
(FIP) who is a woman” or directly to the Committee. During the year the Company received
and investigated one complaint on sexual harassment. Appropriate action was taken.
Awareness programmes were conducted across the Company to sensitize employees to
uphold the dignity of their colleagues at workplace. Some employees were sent to attend
training conducted by external agencies.

For employees in cement plants, the company provides the following facilities:
• Furnished and unfurnished accommodation within our townships, based on their entitlement
• Excellent schools which are often the best in the district and provide subsidized education
for children of employees.
• Well-equipped health care centre with qualified medical staff and facilities.

“The Human Resource management system provides due

processes for employee consultation and participation in
organizational development and policy formulation.”

pg. 22
pg. 23