Organisation profile:

1.2.1 Brief History - Ambuja Cements was set up in 1986. In the

last decade the company has grown tenfold. The total cement
capacity of the company is 18.5 million tonnes.

Its plants are some of the most efficient in the world. With
environment protection measures that are at par with the finest in
the developed world.

The company's most distinctive attribute, however, is its approach to the business.
Ambuja follows a unique homegrown philosophy of giving people the authority to
set their own targets, and the freedom to achieve their goals. This simple vision has
created an environment where there are no limits to excellence, no limits to
efficiency and has proved to be a powerful engine of growth for the company.

As a result, Ambuja is the most profitable cement company in

India, and one of the lowest cost producers of cement in the
world.

Ambuja Cements Limited now a part of Holcim has its plants

located all over India.

Vision: To be India’s most admired company

Mission: Delighted customers, inspired employees, empowered

partners, energized society

1.2.2 Strategies Adopted By ACL

Consolidation Strategy

In 1995, GACL floated a wholly owned subsidiary in Mauritius

– Cement Ambuja International Ltd. (CAIL). A year later, GACL

floated another subsidiary, Ceylon Ambuja Cements (Private) Ltd.,
through which it acquired a small company, Midigama Cement, in
Sri Lanka. In 1997, GACL acquired Modi Cements’ sick 1.4 mtpa
plant at Raipur (Madhya Pradesh) for Rs 1.66 billion. This plant
was renamed Ambuja Cement Eastern Ltd. In 1998, GACL
acquired the Nadikudi (around 100 kms from Guntur) and
Proddatur (near Cuddaph) limestone mines in Andhra Pradesh to
strengthen its presence in southern India

In December 1999, GACL acquired a 51% stake in Delhi based

DLF Cement for Rs 3.5 billion. After this merger, GACL became
the fourth largest cement manufacturer in India after ACC,
L&Tand Grasim.

In the same month, GACL also acquired a 7.2% stake in

Associated Cement Companies (ACC) for Rs 4.55 billion which was
later on increased to 14.4%

2001 – Private equity investors (American International Group

and Government of Singapore) invested in ACIL 2005 – ACIL
restructured as a joint venture with Holcim. ACL is a Holcim Group
company since May 2006
MARKET ENTRY

Presence of strong competitors at the time of entry, speedy setup

of plant, 100% utilization in first 6 months only, emphasis on
Quality

Marketing Strategy

Emphasis was on Quality, high Advertisement for BRANDING-3

times than

ACC at one time , improvement in Packaging by information

provided

by suppliers , extensive & primarily exclusive distribution

network-Over 6,000 dealers and 20,000 retailers ,promotion
through seminar, workshops for masons, architects, contractors
etc by providing info on use of AMBUJA CEMENT

Advertising and Publicity campaign

Transportation and Logistics

Sea transportation- Seven dedicated vessels for faster & cheaper

Transportation, ACL was the 1st Cement company to use Sea as

transportation

Muldwarka, Gujarat: All weather port, 8 kms from our

Ambujanagar plant. Handles ships with 40,000 DWT. is also
equipped to export clinker and cement and import coal and
furnace oil.
 A fleet of 350 self financed trucks was also there for easy
transportation

R&D

Own R&D Department in 1989 encouraged experiments at all

level,
use of mechanical conveyors instead of pneumatic conveyors
against industry trend , use of industrial waste to reduce fuel
consumption

1.2.3 CODE OF BUSINESS CONDUCT AND ETHICS

Ambuja Cements Limited (the Company) is one of the leading

producers of

cement in India. The Company is now a part of Holcim Group,

which is one of

the largest cement makers in the world with operations in more

than 70

countries and employing almost 90,000 people.

The Company considers Corporate Governance as an integral part

of good

management. This Code of Business Conduct and Ethics is an

integral part of

the Company’s commitment to good Corporate Governance.

The Code of Conduct will apply to all the members of the Board of
Directors and

all the employees of the Company in M grade.

Clause 25 of this Code requiring annual confirmation is applicable

to Directors

and employees in grades MOA and above.

The Company expects all the Directors and the Employees to act
in accordance

with highest professional standards, integrity and high morals and

ethics.

1.2.4 HUMAN RESOURCES

Performance Orientation, integrated HR systems, from fresh

talent

acquisition to performance management and individual

development, are aimed at creating and building a quality talent
pipeline. Adequate emphasis has been made on development of
cross-functional skills early in career, and has been meticulously
incorporated in the induction plan. Learning the inter-disciplinary
approach to organisational issues, and learning to manage
people, are the focus areas of management development. Special
in-house customized development programmes, targeted at
different management levels, are systematically delivered by a
well balanced combination of internal and external faculty.

A structured approach to people management is being

established based on an extensive jobs study. This facilitates
organisation structure clarification, and establishment of a
framework for individual development, career pathing, succession
planning, and reward management. One of the core strengths of
the Company is the strong bonding "Ambujaites" have always had
with the Company. Changes both within and outside the Company
bring to the fore the changing aspirations of the people. To
preserve this core strength, employee engagement levels are
being monitored, and where necessary actions taken to

reinforce people bonding with the Company. Consolidating People

Power

The "People Power" project, launched at the Ambujanagar plant in

2008, was aimed at ensuring "healthy people and healthy plants",
on a sustainable basis. The key focus areas for achieving this
were organisation transformation, and institution of an Academy
and a Development cell. The Academy and the Development cell
improvements. As a result of these efforts, the Mean Time
Between Failures (MTBF) has significantly improved, in kilns by
23%, in the raw mills by 59%, and in the cement mills by 33% in
the year 2009. Under the process of organisation transformation,
leadership positions have been created at lower organisation
levels. People development is further enriched through the use of
Performance Dialogue, which aids continuous development of
technical, functional and leadership skills. The "People Power",
structure is aimed at providing a holistic approach to individual
development, career pathing, and

succession planning activities.

HUMAN RESOURCE POLICY

Unlocking potential of employees, employing experienced people

from other companies, more stress on enthusiasm not on
experience, motivating factor empowerment to perform than
monetary factor, free access to senior official including VP,
communication meetings on regular basis to discuss and sort

out grievances , preference to existing employees for higher

position ,reward to suggestions are some of its HR policies.