Seminar Report on

Cement Industry-UltraTech Cement

Submitted in Partial Fulfilment for the Award of the Diploma of Post Graduate Diploma in Management (Session 2010-12)

Submitted to: Faculty Name: Dr.Ajay Pratap Singh

Submitted By: Student Name:Anamika Verma Internal Guide:Dr.Raj Purohit Roll No:PGD10016 PGDM I Trimester-Sec-A

DEPARTMENT OF MANAGEMENT

INSTITUTE OF MANAGEMENT STUDIES, NOIDA A UGC Recognized Institute A-8B, Plot C, Sector-62, Noida

INSTITUTE OF MANAGEMENT STUDIES, NOIDA A UGC Recognized Institute A-8B, Plot C, Sector-62, Noida

DECLARATION

I Anamika Verma bearing Roll No PGD10016 Class PGDM-I-(A) of the Institute of Management Studies, Noida hereby declare that the Seminar Report-108 entitled Cement Industry-UltraTech Cement is an original work and the same has not been submitted to any other Institute for the award of any other diploma. The suggestions as approved by the faculty were duly incorporated.

Signature of Student

Countersigned Signature of Faculty Guide

ACKNOWLEDGEMENT

I would like to express my deep gratitude to all those who, directly or indirectly made this project possible. I have got considerable help and support in making this project report a reality from many people. Firstly I would like to thank Institute of Management Studies, Noida for giving me the opportunity to do this work. I would also like to convey my special thanks to my project guide Dr. R.S.Raj Purohit, whose endeavour for perfection, innovation and dynamism contributed in a big way in completing this project. This work is the reflection of his thought, ideas, concept and above all her efforts.

Thank You-

Anamika Verma PGDM-I-A PGD10016

TABLE OF CONTENT

Page No. INDUSTRY DETAIL COMPANY SPECIFIC VISION MISSION CODE OF CONDUCT MILESTONE MANAGEMENT TEAMS PRODUCTS MERGERS CSR SWOT SUGGESTION BIBLIOGRAPHY 1-4 5-9 10 10 11-12 13-14 15 16-22 23-28 29-36 37-40 41 42

INDUSTRY DETAIL

The Indian cement industry has been on a high growth trajectory for more than a decade, led by buoyancy in sectors such as real estate and construction. The industry has witnessed continuous modernisation and adoption of new technologies in recent years. India is the world's second largest producer of cement after China with industry capacity of over 200 million tonnes (MT). With the boost given by the government to various infrastructure projects, road networks and housing facilities, growth in the cement consumption is anticipated in the coming years. The modern Indian cement plants are state-of-the-art plants and amongst the best in the world. The cement industry comprises of 134 large cement plants with an installed capacity of 173.08 million tonnes and more than 350 operating mini-cement plants, with an estimated capacity of 11.10 million tonnes per annum, making a total installed capacity of 184.18 million tonnes in the last fiscal, as per the Department of Industrial Policy and Promotion's latest data. In order to meet the expanding demand, cement companies are fast developing new plants. The cement industry is poised to add 111 MT of annual capacity by the end of 200910 (FY 2010), riding on the back of approximately 141 outstanding cement projects. According to a report by the ICRA Industry Monitor, the installed capacity is expected to increase to 241 MTPA by FY 2010-end. India's cement industry is likely to record an annual growth of 10 per cent in the coming years with higher domestic demand resulting in increased capacity utilisation. Housing, Infrastructure and Real estate sectors, with major construction activity in rural and semi-urban areas through large infrastructure and housing development projects, are

expected to augment the growth rise in cement sector. Demand in this region is being driven by infrastructure, residential and commercial projects. Domestic Players

While the Cement Corporation of India, a central public sector undertaking, comprises 10 units; the various State governments own 10 large cement plants. Among the leading domestic players in terms of cement manufacturing are Ambuja Cement,  Aditya Birla Group (which owns UltraTech Cement),  ACC Ltd,  J K Cement etc They are not only the foremost producers of cement but also enjoy a high level of equity in the market. Despite a slowdown in most sectors of the economy, the Aditya Birla group, the country's largest cement maker, has seen a sharp rise in cement sales in December. According to figures released by the conglomerate, sales by the group are up 13.36 per cent at 2.82 MT, compared to last year. The Birla group's production of cement for December also rose, by 14.85 per cent to 2.27 MT. The other large cement maker, ACC, too saw a jump in sales in December, despite the slowdown in the realty sector. ACC reported a marginal rise in its cumulative production for the January-December period to 20.84 MT, from 19.92 MT last year; sales rose to 20.86 MT from 19.88 MT last year (2009). Ambuja Cements Ltd, India's third-largest cement maker, too saw an increase in shipments in December 2008. Shipments rose 11.8 per cent to 16.62 MT from 14.86 MT, a year earlier. Global Players

Rapid urbanisation and the booming infrastructure have lead to an increase in construction and development across India, attracting even the global players. The recent

years have witnessed a surge of foreign direct investment in the cement sector. International players like France's Lafarge, Holcim from Switzerland, Italy's Italcementi and Germany's Heidelberg Cements together hold more than a quarter of the total capacity.


Holcim, one of the world's leading suppliers of cement, has 24 plants in the country (India) and enjoys a market share of about 2325 per cent

Italcementi Group, which acquired full stake in the K K Birla promoted Zuari Industries' cement. The French cement major, Lafarge which acquired the cement plants of Raymond and Tisco with an installed capacity of 6.5 MTPA a few years back plans to grow it to 15-30 MTPA in the next 10 years. Till now its manufacturing capacity was concentrated in East India, but now the company is spreading its wings to the north and south. It is setting up four greenfield projects in Rajasthan, Himachal Pradesh, north-east and south India, with a combined capacity of around 5 MT.

German major, Heidelberg Cement has merged Mysore Cement, in which it owns around 54 per cent stake, Indorama, (where it acquired 100 per cent stake in 2008) and its 100 per cent Indian subsidiary, Heidelberg Cement India.

Installed capacity The cement industry in India has added a whopping 46 MT capacity in just a little over three years, taking the total installed capacity to 206.96 MT as on December 31, 2008. This includes India Cements Ltd's new grinding unit at Vallur, Tamil Nadu with an installed capacity of 1.10 MT, and UltraTech's plant at Ginigera, Karnataka with an installed capacity of 1.30 MT.The industry added over 30 MT to its installed capacity in just one year (April 2007March 2008). Almost all players of the industry, small to medium to large, have added capacity ranging between a minimum of 200,000 tonnes and a maximum of 3 MT in the three years (April 2005 to March 2008), effecting a total addition of 45 MT to the installed capacity by setting up greenfield projects, and expanding and upgrading the existing plant.

Technological change Continuous technological upgrading and assimilation of latest technology has been going on in the cement industry. Presently, 93 per cent of the total capacity in the industry is based on modern and environment-friendly dry process technology and only 7 per cent of the capacity is based on old wet and semi-dry process technology. There is tremendous scope for waste heat recovery in cement plants and thereby reduction in emission level. One project for co-generation of power utilising waste heat in an Indian cement plant is being implemented with Japanese assistance under the Green Aid Plan. The induction of advanced technology has helped the industry immensely to conserve energy and fuel and to save materials substantially. India is also producing different varieties of cement like Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFC), Oil Well Cement, Rapid Hardening Portland Cement, etc. Production of these varieties of cement conform to the BIS Specifications. Between April to November 2008, 25 per cent of all cement produced was OPC, 67 per cent was PPC and 8 per cent was PBFC. RMC Business

Ready-mix concrete (RMC) is sometime preferred to on-site concrete mixing because of the precision of the mixture and reduced worksite confusion. The Indian RMC business is growing by 25 per cent every year. In India only 23 per cent cement consumption by cement industry goes through RMC, as against 60 per cent in developed markets. At present, India has 200 RMC plants across the country.


JK Lakshmi Cements plans to add five more RMC units to its existing 10 units as part of its expansion plans at a total cost of US$ 210.53 million.

Lafarge, the world's second largest cement maker, has bagged Larsen and Toubro's RMC business for US$ 311.39 million. Lafarge will be acquiring 66 concrete plants located across India, in key markets such as Delhi, Kolkata, Mumbai and Bangalore, with a total market share of approximately 25% Binani Cement, Shree Cement and Dalmia Cement are among the new players who have plans to get into the RMC business in the next five years.

COMPANY SPECIFIC

ABOUT THE ADITYA BIRLA GROUP A US $24 billion corporation with a market capital of US $23 billion and in the League of Fortune 500, the Aditya Birla Group is anchored by an extraordinary force of 100,000 employees, belonging to 25 different nationalities. Over 50 per cent of its revenues flow from its operations across the world The Aditya Birla Groups products and services offer distinctive customer solutions worldwide. The Group has operations in 20 countries - India, Thailand, Laos, Indonesia, Philippines, Egypt, China, Canada, Australia, USA, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Malaysia and Korea. In India, the Group has been adjudged The Best Employer in India and among the top 20 in Asia by the Hewitt-Economic Times and Wall Street Journal Study 2007. Globally the Aditya Birla Group is

A metals powerhouse, among the worlds most cost-efficient aluminium and copper producers. Hindalco, from its fold, is a Fortune 500 Company. It is also the largest aluminium rolling company and one of the 3 biggest producers of primary aluminium in Asia, with the largest single location copper smelter

     

No. 1 in viscose staple fibre The 3rd largest producer of insulators The 4th largest producer of carbon black The 11th largest cement producer globally and the 2nd largest in India Among the worlds top 15 BPO companies and among Indias top 3 Among the best energy efficient fertilisers plants

In India    

A premier branded garments player The 2nd largest player in viscose filament yarn The 2nd largest in the Chlor-alkali sector Among the top 5 mobile telephony companies A leading player in Life Insurance and Asset Management. ULTRATECH CEMENT

History

ECC was conceived as Engineering Construction Corporation Limited in April 1944 and was incorporated as wholly owned subsidiary of Larsen & Toubro Limited. L&T's founders Mr. Holck - Larsen and Mr. Toubro laid the foundation for ECC.

ECC incorporated on 24 August 2000 as L&T Cement Limited

Cement business of Larsen & Toubro Limited demerged and vested in company in 2004

  

Grasim (Aditya Birla Group) acquired management control in July 2004 Aditya Birla Cement production started in 1998. Turnover in the financial year 2003 was Rs 4626 crore.

UltraTech Cement, known for its impeccable quality, is today changing the face of India. The cement has not only built landmark projects like flyovers, bridges, dams, runways, but has also built everlasting trust in engineers, builders, contractors and individual house builders. With a manufacturing capacity of 48.8 million MT annually (2009), eleven integrated plants, eleven grinding units and five bulk terminals, UltraTech cement is the 8th largest cement producer in the world. Its composite product portfolio which, along with UltraTech (Grey Cement) includes Birla White (White Cement) and Ready Mix Concrete (UltraTech Concrete). Also, an array of new products - UltraTech Seal & Dry Total Water Proofing Solution, UltraTech SuperStucco Easy to apply Polymer Modified mortar , UltraTech Nubric strong & eco friendly brick , UltraTech FixoBlock extra fine jointing mortar , UltraTech Readiplast plaster product makes UltraTech a complete construction solutions company. This ethos is also reflected in UltraTech Building Solutions its initiative to bring construction solutions to consumers under one roof. With growing demand for cement in the wake of housing and infrastructure boom the company is set to attain newer heights. Financial facts The company is headquartering at Mumbai in India. The company reported revenues of (`) INR 66,643.30 million during the fiscal year ended March 2009, an increase of 16.43% over 2008. The operating profit of the company was INR 13,678.20 million during the fiscal year 2009, a decrease of 9.73% from 2008. The net profit of the company was INR 9,780.60 million during the fiscal year 2009, a decrease of 3.17% from 2008.

Plant and Machinery UltraTech Concrete is manufactured at state-of-the-art computerized automatic batching & mixing plants with contemporary technology. Some of the special features of our plants are1. Entire process is fully computerized, leaving no scope for human errors. All the control systems are Windows based. 2. Cement and other raw material are checked as per our quality plan. 3. All the raw materials are stacked in separate bins and are stored under cover so that aggregates are not exposed to direct sunlight and environment pollution. 4. Cement, Fly ash, Slag etc. are stored in separate silos for better control on recipe. 5. Handling of fly ash and slag are done from closed bunkers to silos directly. 6. Separate weigh-batchers are provided for each ingredient like cement, water, admixtures and aggregates. The weighing is done on sophisticated electronic weigh batchers. Precise weighing of all materials is done through electronic load cells made up of special alloys. 7. Homogeneous mixing of concrete is ensured by use of special high-efficiency mixers like pan-type or turbo-twin shaft mixers. 8. A fully equipped onsite plant laboratory is available at each plant. 9. A Sprinkler system is installed to ensure temperature control of aggregates in hot weather. 10. In line with Groups focus towards environment and eco-friendliness all silos are installed with bag filters and level indicators to avoid any kind of pollution. 11. Processes are in place for effective and periodic maintenance and calibration of all critical components. 12. Laser sensor and moisture control are used for a stringent quality assurance. 13. Well trained and experienced engineers are available at every plant to take care of the quality of concrete.

PLANTS  Awarpur Cement Works  Gujarat Cement Works  Hirmi Cement Works  Jafrabad Cement Works  Arakkonam Cement Works  Jharsuguda Cement Works  Magdalla Cement Works  Ratnagiri Cement Works  West Bengal Cement Works  Ginigera Cement Works Overview Cement is an essential material for today's society because concrete is made from cement, which is an inevitable element for housing, commercial and infrastructure development. Measured on a kilogram per capita basis, concrete is 2nd most widely consumed material in the world, second only to water. Cement manufacturing process will have -Local impacts (landscape disturbance, dust emission) and Global impacts (CO2, SOx and NOx emissions). Because of these impacts, sustainable development has recently become a major strategic issue for cement manufacturers around the world. Cement industry is giving very specific and serious attention for managing CO2 emissions.

In 2000 a group of 10 major cement companies collaborated as "working group cement"(Cemex (Mexico), Lafarge (France), Cimpor (Portugal), RMC (Great Britain), Heidelbeurg (Germany), Siam Cement (Thailand), Holcim (Switzerland), Italicementi (Italy), Votorantim (Brazil) has sponsored study under World Business Council for sustainable development (WBCSD). WBSCD has entrusted this study to an independent organization namely, Batelle Memorial Institute. The ideas emerged from this study indicate that the cement industry-

 Operates manufacturing or processing facilities in 150 countries.  Has estimated a turnover of USD 97 billion.  Directly employs an estimated 850,000 workers

Mission To deliver superior value to our customers, shareholders, employees and society at large.

Vision "To actively contribute to the social and economic development of the communities in which we operate. In so doing, build a better, sustainable way of life for the weaker sections of society and raise the country's human development index."

Mrs. Rajashree Birla, Chairperson, The Aditya Birla Centre for Community Initiatives and Rural Development

CODE OF CONDUCT

The Code of Conduct (hereinafter referred to as "the Code") has been framed and adopted by UltraTech Cement Limited (hereinafter referred to as "the Company") in compliance with the provisions of Clause 49 of the Listing Agreements entered into by the Company with the Stock Exchanges.

Applicability

The Code applies to the Members of Board of Directors (hereinafter referred to as "Board Members") and Members of the Senior Management Team of the Company one level below the Board Members, viz. Manager & CEO, CFO and all Unit Heads, Presidents, Joint Presidents and all other executives having similar or equivalent rank in the Company and the Company Secretary of the Company (hereinafter referred to as "Senior Managers").The Company Secretary shall be the Compliance Officer for the purpose of this Code.

Code of Conduct The Board Members and Senior Managers shall observe the highest standards of ethical conduct and integrity and shall work to the best of their ability and judgement. The Board Members and the Senior Managers of the Company1 Shall maintain and help the Company in maintaining highest degree of Corporate Governance practices. 2 Shall act in utmost good faith and exercise due care, diligence and integrity in performing their office duties. 3 Shall ensure that they use the Company's assets, properties, information and intellectual rights for official purpose only or as per the terms of their appointment. 4 Shall not seek, accept or receive, directly or indirectly, any gift, payments or favour in whatsoever form from Company's business associates, which can be perceived as being given to gain favour or dealing with the Company and shall ensure that the Company's interests are never compromised.

Shall maintain confidentiality of information entrusted by the Company or acquired during performance of their duties and shall not use it for personal gain or advantage.

Shall not commit any offences involving moral turpitude or any act contrary to law or opposed to the public policy.

Shall not communicate with any member of the press or publicity media or any other outside agency on matters concerning the Company, except through the designated spokespersons or authorized otherwise.

Shall not, without the prior approval of the Board or Senior Management, as the case may be, accept employment or a position of responsibility with any other organization for remuneration or otherwise that are prejudicial to the interests of the Company and shall not allow personal interest to conflict with the interest of the Company.

Shall in conformity with applicable legal provisions disclose personal and/ or financial interest in any business dealings concerning the Company and shall declare information about their relatives (spouse, dependent children and dependent parents) including transactions, if any, entered into with them.

10 Shall ensure compliance of the prescribed safety & environment related norms and other applicable codes, laws, rules, regulations and statutes, which if not complied with may, otherwise, disqualify him/ her from his/ her association with the Company. 11 Shall ensure compliance with SEBI (Prohibition of Insider Trading) Regulations, 1992 as also other regulations as may become applicable to them from time to time. Annual Compliance Reporting Board Member and Senior Managers shall affirm compliance with this Code on an annual basis as at the end of the each financial year of the Company (as per Appendix I within 7 days of the close of every financial year).

Acknowledgement of Receipt of the Code Each Board Member and Senior Manager both present and future shall acknowledge receipt of the Code or any modification(s) thereto, in the acknowledgement form annexed to this Code as Appendix - II and forward the same to the Compliance Officer.

Any breach of the aforesaid Code brought to the notice of the Compliance Officer or any Member of the Board or Senior Management shall be reported to the Board of Directors of the Company for necessary action.

MILESTONES 1983  Awarpur Cement Works Plant I 1987  Awarpur Cement Works Plant II 1993  Jharsuguda grinding unit 1994  Hirmi Cement Works 1996  Gujarat Cement Works Plant I 1998  Andhra Pradesh Cement Works  Gujarat Cement Works Plant II 1999  Narmada Cement Company Limited acquired  Ratnagiri Cement Works 2000  Bulk cement terminals at Mangalore, Navi Mumbai and Colombo 2001  Grasim acquires 10 per cent stake in L&T. Subsequently increases stake to 15.3 per cent by October 2002.  Durgapur grinding unit 2002  Grasim increases its stake in L&T to 14.15 per cent  Arakkonam grinding unit

 The Grasim Board approves an open offer for purchase of up to 20% of the equity shares of Larsen & Toubro Ltd (L&T), in accordance with the provisions and guidelines issued by the SEBI Regulations, 1997.

2003  The board of Larsen & Toubro Ltd (L&T) decides to demerge its cement business into a separate cement company (CemCo). Grasim decides to acquire an 8.5% equity stake from L&T and then make an open offer for 30% of the equity of CemCo, to acquire management control of the company.

2004  Completion of the implementation process to demerge the cement business of L&T and completion of open offer by Grasim, with the latter acquiring controlling stake in the newly formed company UltraTech. 2006  Formerly known as Ultratech Cemco Limited. The Group's principal activities are to manufacture and market clinker and cement in India.  Ultratech Cement Ltd has inducted Mr. Saurabh Misra into the Board as an Additional Director and appointed Managing Director of the Company. 2007  Ultratech Cement receives order from BIFR.  Ultratech Cement Ltd has appointed Mr Girish M Dave as a Director on the Board of the Company.

2009  UltraTech to absorb Samruddhi to form India's biggest cement firm  Ultratech to be the lead sponsors of Rajasthan Royals  UltraTech to consider Grasim merger proposal 2010

 Ultratech Cement Ltd has appointed Mr. 0 P Puranmalka as Additional Director with immediate effect.

MANAGEMENT TEAMS Board of Directors  Mr. Kumar Mangalam Birla, Chairperson  Mrs. Rajashree Birla  Mr. R.C.Bhargava  Mr. G.M.Dave  Mr. N.J.Jhaveri  Mr. S.B.Mathur  Mr. V.T.Moorthy  Mr. S.Rajgopal  Mr. D.D.Rathi  Mr. O.P.Puranmalka, Wholetime Director

Executive President & Chief Financial Officer  Mr.K.C.Birla Chief Manufacturing Officer  Mr. R.K.Shah Chief Marketing Officer  Mr. S.N.Jajoo Chief People Officer  Mr. C.B.Tiwari Company Secretary  Mr. S.K.Chatterjee 

PRODUCTS

UltraTech is India's largest exporter of cement clinker. The company's production facilities are spread across eleven integrated plants, one white cement plant, twelve grinding units, and five terminals four in India and one in Sri Lanka. Most of the plants have ISO 9001, ISO 14001 and OHSAS 18001 certification. In addition, two plants have received ISO 27001 certification and four have received SA 8000 certification. The process is currently underway for the remaining plants. The company exports over 2.5 million tonnes per annum, which is about 30 per cent of the country's total exports (2009). The export market comprises of countries around the Indian Ocean, Africa, Europe and the Middle East. Export is a thrust area in the company's strategy for growth.
  

Ordinary Portland cement Portland blast furnace slag cement Portland Pozzolana cement

Ordinary Portland cement Ordinary Portland cement is the most commonly used cement for a wide range of applications. These applications cover dry-lean mixes, general-purpose ready-mixes, and even high strength pre-cast and pre-stressed concrete.

Portland blast furnace slag cement Portland blast-furnace slag cement contains up to 70 per cent of finely ground, granulated blast-furnace slag, a non-metallic product consisting essentially of silicates and alumino-silicates of calcium. Slag brings with it the advantage of the energy invested in the slag making. Grinding slag for cement replacement takes only 25 per cent of the energy needed to manufacture Portland cement. Using slag cement to replace a portion of Portland cement in a concrete mixture is a useful method to make concrete better and more consistent. Portland blast-furnace slag cement has a lighter colour, better concrete workability, easier finish ability, higher compressive and flexural strength, lower permeability, improved resistance to aggressive chemicals and more consistent plastic and hardened consistency.

Portland Pozzolana cement Portland pozzolana cement is ordinary Portland cement blended with pozzolanic materials (power-station fly ash, burnt clays, ash from burnt plant material or silicious earths), either together or separately. Portland clinker is ground with gypsum and pozzolanic materials which, though they do not have cementing properties in themselves, combine chemically with Portland cement in the presence of water to form extra strong cementing material which resists wet cracking, thermal cracking and has a high degree of cohesion and workability in concrete and mortar. Concrete Concrete is most vital material in modern construction. It has versatile properties like easy mould ability, high compressive strength and long lasting durability. These properties of concrete have made it most popular construction material for all types of civil engineering works. The latest developments in concrete technology have made it possible to use it in intricate and architecturally complex structures, requiring high degree of performance and aesthetic appearance. In addition to normal concrete, other varieties in use are, high strength and high performance concrete, self compacting, light weight, high density, fibre reinforced, polymer, coloured concrete etc.

The ingredients of good and bad concrete are the same. The difference lies in the technology used for production, transportation and placement. The making of concrete is an art as well as a science. Science because all the ingredients are proportioned as per the standard codes of practice to get the targeted strength & durability, and an art because in addition to accurate proportioning, quality of concrete depends on the way it is mixed, placed, compacted, finished, cured and protected. Ready mix Concrete (RMC) technology results in a perfect blend of the Art and Science. In all the developed as well as most of the developing nations, use of RMC for construction has made it possible to achieve speed and quality. The advent of commercial RMC in India is about a decade old, but in recent years it has become the preferred choice of architects, engineers and consumers. UltraTech Concrete is committed to provide customised high quality RMC for ensuring speedy construction. UltraTech concrete plants are present in-

 Mumbai,  Pune,  Nasik,  Nagpur,  Ahmedabad,  Surat,  Gurgaon,  Noida,  Jaipur,  Chandigarh,  Chennai,  Bangalore,  Hyderabad,  Cochin,  Vizag,  Ludhiana,  Raipur

Production Portland cements are made by grinding a mixture of limestone, clay and other corrective materials, viz. Lateritic, Bauxite etc. Essential constituents mainly are Lime, Silica, Alumina and Iron Oxide. The process of manufacturing consists of grinding of raw materials into fine powder, mixing them intimately and burning in a kiln at about 1400 deg. C. The resultant product is called Clinker. Clinker is cooled, ground to fine powder with gypsum. The end product is cement. Cement UltraTech Concrete plants use fresh cement directly procured from the state-of-the-art cement plants mainly through cement bulkers, which in turn is pumped directly into UltraTech Concrete silos, thus protecting it from the external environment and humidity.

Coarse Aggregates UltraTech Concrete directly sources the aggregates from selected and approved suppliers and these aggregates are tested as per IS stipulations at regular intervals for:  Shape, size and gradation (elongation/flakiness test)  Impact value and crushing value test for their strength Fine Aggregate UltraTech Concrete directly purchases sand from selected and approved suppliers. The sand is tested as per IS stipulations at regular intervals for:  Moisture content  Gradation for fineness modulus  Silt content Water UltraTech Concrete tests the quality of water as per BIS standards at frequent intervals and in case the water needs any treatment, water purifiers are used.

Mineral Admixtures In UltraTech Concrete plants, mineral admixtures are obtained from proven sources conforming to relevant BIS standards. High-tech facilities are used for collection, transportation and storage to avoid contamination due to environment and any other source. Chemical Admixtures In UltraTech Concrete plants, high quality admixtures are used in concrete during mixing to improve certain properties of fresh concrete such as workability and setting time. The admixture is sourced from reputed companies and is tested for compatibility with cement before use.

Workability of concrete In UltraTech Concrete, workability is properly controlled through scientific methods by appropriate dosing of admixtures. Workability is measured (and recorded) for every batch to facilitate efficient transportation and pumping. Batching and Mixing UltraTech Concrete is proportioned using computer aided scientific methods conforming to relevant standards. Mixing is done through high efficiency pan mixers or twin shaft vibro-mixers in fully automated mixing and batching plant leaving no scope for human error. These measures ensure consistent quality in every batch.

Making Good Construction Better  Efflorescense and leaching in concrete  Vibrating Concrete  Cold Weather Concreting  Bleeding in concrete

 Hot weather concreting  Fibre Reinforced concrete  Cover for Reinforcement  Curing  Plastic Shrinkage Cracks  General Precautions

Going forward Industry demand may grow at 9% for the year given the Government initiatives to boost rural development, infrastructure and housing all of which provide a growth impetus. New capacities, which are at various stages of commissioning, will inevitably result in a fall in capacity utilization from H2FY10 and squeeze margins. Companys steps in the form of cement / clinker capacity addition, new thermal power plants and capital productivity should partially offset the impact on margins.

Companys Performance The financial year 2008-09 began under a challenging environment. Rising energy cost and commodity prices spurred inflation and affected margins. In the second half, the global financial crises aggravated the situation resulting in a liquidity crunch, a high cost of credit and a sharp fall in capital markets. All of this resulted in an overall slowdown in the economy. The Central Government and the Reserve Bank of India adopted a series of fiscal and administrative initiatives to address the situation. These were in the form of infusing liquidity in the market by reducing CRR and SLR of Banks, stimulus packages and release of arrears in wages following the recommendation of the 6th Pay Commission Award. These measures led to a revival of construction activities in the semi urban and rural areas during the last quarter of FY09 resulting in an increase in the demand for cement. During the year ended 31st March, 2009, Net revenues at `6,383 crores grew by 16% over the preceding year, while Net Profit at ` 977 crores was 3% lower. Effective capacity utilisation was 96% on expanded capacity. Aggregate sales volume at 18.18 MMT

was up by 6% compared to 17.11 MMT in the previous year. Companys sales volume grew by 24%, at 5.31 MMT. Net Sales at Rs. 1,953 crores was up by 31% compared to ` 1,496 crores in Q1FY09. Profit before interest, depreciation and tax at ` 751 crores vis-a-vis ` 472 crores in Q1FY09 rose by 59% and Profit after tax at ` 418 crores as against `.265 crores for the corresponding period in FY09 increased by 58%. Strategies Adopted by UltraTech  Promise: Excellent product quality and customer care are the hallmark of UltraTech.  Capitalizing the opportunity of the geometric growth in the housing sector and the government's thrust on infrastructure.  Right decision at right time  Having excellent Product in hand  Constantly striving to improve and capture more number of market share  Training to Staff  Promotion through movies  Sponsorship

Opinion towards Marketing  Increase frequency of advertisements on T.V., radio, internet and print media.  Increase Strategic Alliance  Increase visibility by campaign and other modes.  Increase number of distributors and agents  Increase number of warehouse  Having micro-planning in place

MERGER

UltraTech Cement With Grasim Cement Arm

After demerging the cement business from Grasim Industries, the Aditya Birla group has decided to merge the new cement subsidiary with group firm UltraTech Cement Ltd. Grasim Industries decision to restructure its cement assets into a separately listed entity, with the ultimate aim of merging it with UltraTechs cement business, is seen in a positive light. However, while the deal looks beneficial from a long-term perspective, analysts believe that there are no immediate gains. But, they expect shareholders of UltraTech Cement to gain marginally from a possible re-rating in the near-term. Grasim Industries demerged its cement business into Samruddhi Cement Ltd, a wholly-owned subsidiary of Grasim, as part of its restructuring plan, where Grasims shareholders would receive one equity share of Samruddhi for every one share they held in Grasim. Grasim has taken the first step towards consolidating its cement business into one entity, creating a new holding company. Grasim plans to hive-off its cement assets, excluding its 54.78 per cent stake in UltraTech Cement, into Samruddhi Cement effective October 1, 2009. The shareholders of Grasim will get a share each of ` 5 each in the new company, aggregating to 35 per cent (or 9.17 crore shares), while Grasim will continue to control Samruddhi with a 65 per cent stake (17 crore shares).

Later, Samruddhi will seek a separate listing, though it will be for a short-period, as consequent to approval of concerned authorities as well as shareholders of Grasim and UltraTech, the cement businesses of Samruddhi and UltraTech are planned to be merged to form Indias largest cement company with an installed capacity of nearly 50 million tonnes per annum (mtpa). Post merger, Grasim is estimated to have a controlling stake of about 60 per cent in the larger cement entity. The move is designed to ensure Grasims majority stake in, and continued support to, the rapidly growing cement business; while simultaneously, providing Grasim shareholders direct participation in the pure play cement company. Whilst Grasims commitment to fund growth of cement business remains unabated, the demerger opens up new choices for financing this growth. Eventually, it will also help create a platform for potential consolidation. All of which, should help maximise shareholder value in the long-run. Grasim, meanwhile, would continue to focus on its VSF business, which so far provided a large part of the cash-flows to grow the cement business. Grasim is setting up a new ` 1,000 crore project in Gujarat, which will increase its VSF capacity by 80,000 tpa. VSF, along with other businesses accounted for a third of profits of Grasims standalone numbers in FY09. Post demerger, Grasim will operate the VSF and other small business and have cash and investments worth ` 1,500 crore. Analysts say, its ability to effectively utilise this cash and operating profits of over ` 700 crore annually, will have a bearing on the value accretion for its shareholders, going ahead. What needs to be watched is the merger ratio between Samruddhi and UltraTech. While the market is currently according similar valuations to the cement business of the two companies (adjusted for the different face values), in Grasims case, a few believe that there could be some upside in the form of a slightly better valuation given to Samruddhi due to its larger size and ownership of a profitable white cement business. While the move is in the right direction, the concerns regarding the potential over-supply situation and soft cement prices loom large for the cement industry. In this context, many analysts believe that Grasim is fairly valued while they see gains of up to 10 per cent for UltraTech from current levels. Ultratech Cement Ltd has announced that Ultratech Cement Ltd has received a consolidation proposal from Samruddhi Cement Ltd a wholly owned subsidiary of Grasim Industries Ltd. Grasim has proposed to de merge its cement business to Samruddhi pursuant

to a scheme of arrangement under Sections 391-394 of the Companies Act 1956, subject to necessary approvals. The board of directors of UltraTech Cement approved in-principle the merger proposal of group company Samruddhi Cement with itself. The company has appointed Bansi Mehta & Company for the valuation exercise and UBS as investment banker. The company expects the valuation report by the first week of November, and the board will meet again as soon as it receives the report. The entire process will be completed within seven to nine months. Extra care will be taken to protect the interest of Grasim investors. Clearing misgivings that Grasim would be reduced to a holding company of the cement business, Mr Birla said the re-rating of UltraTech post-merger would more than make up for the loss, if any, incurred by Grasim shareholders. While UltraTech commands an enterprise value of $110 a tonne, Ambuja Cement and ACC are rated at $147 a tonne, while it is $160 a tonne for Shree Cement. UltraTech will be re-rated substantially post-merger. Grasim will continue to invest in cement through UltraTech though the mode of investment (debt or equity) will be decided at the appropriate time. The group does not propose to add any new business to Grasim as it wants to retain its identity of a textile company.

Facts About Company  The Aditya Birla Group is the ninth-largest cement producer in the world  Incorporated on 24 August 2000 as L&T Cement Limited  Cement business of Larsen & Toubro Limited demerged and vested in company in 2004  Grasim acquired management control in July 2004  Together with Grasim, one of the largest cement producers in India  Name changed to UltraTech Cement Limited with effect from 14 October 2004  Narmada Cement Company Limited amalgamated with UltraTech in May 2006  Cement business of Grasim demerged and vested in Samruddhi Cement Limited in May 2010  Samruddhi Cement Limited amalgamated with UltraTech Cement Limited in July 2010

UltraTech Cement To Purchase 80% of Star Cement (Dubai)

The UltraTech Cement Ltd, a subsidiary of Aditya Birla group, will purchase around an 80% stake in Dubais ETA Star group-owned Star Cement Co. Llc. for an enterprise value of US$ 380 million (` 1754 crore). It is understood that the purchase will be made through UltraTech Cement Middle East Investments Ltd, a wholly owned subsidiary of UltraTech Cement. The enterprise value is the market value of the entire business, including debt. Adesh Gupta, a whole-time director and chief financial officer at Grasim Industries Ltd, which controls 60% of UltraTech Cement, said that It will be more than 51% (stake), it will be very high stake. It will give an exit route for the ETA (group), The remaining stake in Star Cement will be held by the local partner with whom ETA had built cement plants. The acquisition is set for completion later this week. The deal will give the US$ 30 billion Birla group direct access to the West Asian market, until now served through exports, Gupta said. We used to export more than 3 lakh t of clinker to the UAE market. So (now), instead of exporting clinker from India we have our own plant. UltraTech has gone there for the long-term and they will save freight costs because they no longer have to export clinker to that market, said Rupesh Sankhe, an analyst at Mumbai-based brokerage Angel Broking Ltd.

UltraTech is also planning a 15MW coal-fired power plant in West Asia at a cost of ` 5 crore per MW to manufacture cement at cheaper cost. The United Arab Emirates (UAE) cement market has a total capacity of 30-35 million t, but demand slackened after a real estate slowdown hit Dubai last year. Star Cement has an annual capacity of 3.2 million t. The Aditya Birla group has already demerged Grasims cement business into a newly listed subsidiary Samruddhi Ltd, which in turn will be merged with UltraTech. Grasim currently has ` 2500 cash on its books. Adesh Gupta declined to say how the company would use the cash but said it will invest ` 1000 crore by fiscal 2013 to more than double its capacity in viscose staple fibre, which is used to make fabric and garments in Gujarat.

CORPORATE SOCIAL RESPONSIBILITY CSR is defined as operating a business that meets all exceeds the ethical, legal, commercial and public expectations that society has of Business. Making a difference Before Corporate Social Responsibility found a place in corporate lexicon, it was already textured into companys group's value systems. As early as the 1940s, their founding father Shri G.D Birla espoused the trusteeship concept of management. Simply stated, this entails that the wealth that one generates and holds is to be held as in a trust for their multiple stakeholders. With regard to CSR, this means investing part of their profits beyond business, for the larger good of society.

While carrying forward this philosophy, company legendary leader, Mr. Aditya Birla, weaved in the concept of 'sustainable livelihood', which transcended cheque book philanthropy. In his view, it was unwise to keep on giving endlessly. Instead, he felt that channelizing resources to ensure that people have the wherewithal to make both ends meet would be more productive. He said, "Give a hungry man fish for a day, he will eat it and the next day, he would be hungry again. Instead if you taught him how to fish, he would be able to feed himself and his family for a lifetime." Company strategy Taking these practices forward, ultratech chairman Mr. Kumar Mangalam Birla institutionalised the concept of triple bottom line accountability represented by economic success, environmental responsibility and social commitment. In a holistic way thus, the interests of all the stakeholders have been textured into companys group's fabric.

The footprint of their social work today spans 2,500 villages in India, reaching out to seven million people annually. Their community work is a way of telling the people among whom they operate that they care.

Projects are planned after a participatory need assessment of the communities around the plants. Each project has a one-year and a three-year rolling plan, with milestones and measurable targets. The objective is to phase out their presence over a period of time and hand over the reins of further development to the people. This also enables them to widen their reach. Along with internal performance assessment mechanisms, their projects are audited by reputed external agencies, who measure it on qualitative and quantitative parameters, helping them gauge the effectiveness and providing excellent inputs. Their partners in development are government bodies, district authorities, village panchayats and the end beneficiaries the villagers. The Government has, in their 5-year plans, special funds earmarked for human development and they recourse to many of these. At the same time, they network and collaborate with like-minded bilateral and unilateral agencies to share ideas, draw from each other's experiences, and ensure that efforts are not duplicated. At another level, this provides a platform for advocacy. Some of the agencies they have collaborated with are UNFPA, SIFSA, CARE India, Habitat for Humanity International, Unicef and the World Bank.

Company focus areas Ultratech rural development activities span five key areas and their single-minded goal here is to help build model villages that can stand on their own feet. Their focus areas are healthcare, education, sustainable livelihood, infrastructure and espousing social causes.

Education Balwadis (pre-school) Adult education Non-formal education Continuing education Scholarships for girls, merit and technical education

Health and family welfare Mobile clinics - doctors visit once a week Medical camps - general and issue-based Health training and awareness Sanitation - toilets, training, smokeless chullahs, biogas Safe drinking water Mother and child health Reproductive health Awareness building

Sustainable development and livelihood and agriculture and watershed development Self-help groups

SGSY - dairy, readymade garments, jute project, basket making, aggarbati making, bee keeping, durrie making. Check dam Irrigation Land development Soil and water conservation Pasture development Social forestry/ plantation activities/ nursery Horticulture Farmer training

Infrastructure development Roads Dams Community centres Houses Culverts Electricity Health centres Water channels Schools

For Employees  Relocation benefit: a) Reimbursement of cost incurred for movement of goods b) Travel Reimbursement c) Relocation Allowance  Childrens Education Reimbursement  General Reimbursements  Hospitalization Insurance  Accident Insurance  Company Vehicle Leasing Scheme  Holidays & Leave Policy  Company Transportation  Leave encashment  Advance Salary  Awards and reorganization  Social events  Loans without interest  Employee Scholarship (with/without bond)  Employee Compensation  Sponsorship (Sports)  Parental Care  Discounts and Coupons For the Environment  Committed to sustainable development, to meeting the needs of the present without in any way jeopardizing the welfare of future generations.  Business strategies consciously factor environment conservation as a major principle.  Plants are ISO14001 Environment Management Systems Certified and adhere to OHSAS 18001 standards.

Awards In the Field of CSR 2010  Mrs. Rajashree Birla, Chairperson, Aditya Birla Centre for Community Initiatives and Rural Development, was awarded the Global Golden Peacock Life Time Achievement Award for Community Development for the year 2010 for "Outstanding Contribution Towards Community Development and Social Welfare".  Hindalco and Birla White declared winners in the Golden Peacock Awards for Corporate Social Responsibility 2010 by an eminent international jury, headed by Justice P.M. Bhagwati, the erstwhile Chief Justice of India.  The Aditya Birla Centre for Community Initiatives and Rural Development teamed up with Columbia University's research centre, the Columbia Global Centers' Earth Institute in Mumbai, to become its principal partner. The Earth Institute's goal is to help achieve sustainable development primarily by expanding people's understanding of the earth as one integrated system.  Hindalco wins Amity International Business Schools, Amity Corporate Excellence Award for Corporate Social Responsibility 2009  Grasim's pulp and fibre division won the highly prestigious Asian CSR Award. The Asian CSR Awards, Asia's Premier CSR Awards program, is a project of the Asian Institute of Management, Manila.  Rajiv Gandhi Award for Eminence in Social Field, 2009 was conferred on Mrs. Rajashree Birla by Mr. Jyotiraditya Scindia (Union Minister of State, Commerce & Industry) on 19 August 2009. The award recognises Mrs. Birla's pathbreaking work among the poor, more so in India's villages, carried out through the Aditya Birla Centre for Community Initiatives and Rural Development.  Vikram Cement and Aditya Cement won the Federation of Indian Mineral and Industries' "Social Awareness Award for the year 2008-09".

 In recognition of work that truly exemplifies the highest values of society and corporate leadership for social responsibility and sustainable development initiatives, the Reader's Digest Pegasus Star Award was conferred on Hindalco. Mrs. Rajashree Birla who spearheads all the Group's social projects received this much coveted award on behalf of Hindalco from Mr. Arun Jaitley, MP, Rajya Sabha, on 21 January 2009 in Delhi. 2008  The President of India, Mrs. Pratibha Patil conferred the much coveted Rotary International Polio Eradication Champion Award on Mrs. Rajashree Birla in an elegant function at the Rashtrapati Bhavan (Delhi), attended by the Chairman, select Rotarians and WHO officials 2007  The Aditya Birla Group was honoured with the India Today Group's Readers Digest Gold award in recognition of the work that truly exemplifies the highest values of society as well as those of Reader's Digest. The award was received by Mrs. Rajashree Birla, Chairperson, Aditya Birla Center for Community Initiatives and Rural Development, at the Pegasus Corporate Social Responsibility Awards 2007 function.  Hindalco was awarded the CII - Sorabji Green Business Centre "National Award for Excellence in Water Management 2007". 2006  Hindalco awarded the Greentech Safety Silver Award for its outstanding safety performance during 2005-06. 2004  Grasim, Nagda, received the FICCI Annual Award 2003-2004 in recognition of corporate initiaitve in rural development  Aditya Birla Chemicals (India) Limited, Rehla, Jharkhand, received the FICCI Annual Award 2003-2004 in recognition of corporate initiative in family welfare.

 Indal won FICCI Award 2002-2003 for 'Corporate Initiative in Rural Development'

2003  The Group is ranked 16th in India's first ever survey of 'Great places to work in', published in Business World magazine. The Group's joint venture concern, Birla Sun Life Insurance, is ranked 9th in the same study  The Group is ranked 20th in a study on the 'Best Employers in India', conducted by Hewitt Associates and Business Today. 2002  The Group received The Economic Times' "Corporate Citizen" of the year award.

SWOT ANALYSIS SWOT analysis is a strategic planning method used to evaluate the Strength, Weaknesses, Opportunity, and Threats involved in a business venture. It involves specifically the objective of the business venture and identifying the internal and external factors that are favourable and unfavourable to achive that objective.  Strengths:- characteristics of the business or team that give it an advantage over others in the industry.

 Weaknesses:- are characteristics that place the firm at a disadvantage relative to others.

 Opportunities:- external chances to make greater sales or profits in the environment.  Threats:- external elements in the environment that could cause trouble for the business.

Identification of SWOTs are essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.

The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. These come from within the company's unique value chain. SWOT analysis groups key pieces of information into two main categories:
 

Internal factors The strengths and weaknesses internal to the organization. External factors The opportunities and threats presented by the external environment to the organization.

SWOT ANALYSIS OF ULTRATECH CEMENT Strength UltraTech Cement Limited (UltraTech) is India-based one of the largest cement manufacturing company. The company along with its subsidiaries is engaged in the business of manufacturing, marketing, distribution and sales of the cement and cement related products. UltraTechs other cement related products are ready mix concrete and cement clinker. The product portfolio of the company comprises Portland cement, Portland blast furnace slag cement and Portland Pozzolana cement. The company also exports cement and clinker to countries around the Indian Ocean, Africa, Europe, and the Middle East. The company has an annual cement production capacity of 18.2 million tones. It is a subsidiary of Grasim Industries Ltd. The company operates two subsidiary companies namely, Dakshin Cement Limited and UltraTech Ceylinco (P) Limited. The company is headquarter at Mumbai in India.The company reported revenues of (Rupee) INR 66,643.30 million during the fiscal year ended March 2009, an increase of 16.43% over 2008. The operating profit of the company was INR 13,678.20 million during the fiscal year 2009, a decrease of 9.73% from 2008. The net profit of the company was INR 9,780.60 million during the fiscal year 2009, a decrease of 3.17% from 2008. Strengths of UltraTech are as follows Better quality  Long relationship with customer.  Maintains a world class infrastructure.  Market share.  Large distribution network.  Proper research and development.  Strong financial backing

Weakness Everyone looks up to a visionary leader to understand the possibilities tomorrow holds. And you have a greater responsibility to bear when you are Indias largest cement company. In the present day context, UltraTech is playing an important role in the infrastructural development of the country. No wonder, UltraTechs every creation is a window to tomorrow. And an effective communication was needed to reflect the same.It was quite a daunting task for Interface Communications, the advertising agency for UltraTech, to get the right mix of emotions and technological superiority that appeal to everyone right across IHBs to architects and large commercial establishments. The weaknesses of UltraTech are as follows Delay in supply.  Inconsistency of Supply.  Insufficient manpower

Opportunity When you view India through a prism, its multi-faceted refractions are awesome, unique and partly distressing. A multiethnic, multi-religious, multilingual, multi-cultural diverse democracy, rich in its distinctive heritage India is, indeed, captivating. Our democracy resonates throughout the world. Moreover, the way in which India has transformed itself from a colonial, agri-based backwater economy into an independent, modern, knowledge-driven one is the stuff of case studies at the best-in-class business schools the world over. While the youth leader must appreciate these facets, he or she must have a thorough understanding of the different strands that go into the weave of India. The partition in the aftermath of our freedom struggle has left a scar, as has the divide in the name of God. India is a country of extreme paradoxes. We are reckoned as a nation of tremendous opportunities and, yet, it is a reality that India is a place of perpetual struggle. We have large tracts of our country that have yet to witness any economic advancement.

Company should Develop new marketing areas.  Sign more MOUs with government regarding supply of cement for Government work.  Maintain the position of competition in the market.

Threats Just a few years ago, the Aditya Birla Group bought over the cement business of L&T for around ` 2,200 crore. L&T allowed its name to be used for about a year. O.P. Puranmalka, Group Executive President, Grasim Industries, and Chief Marketing Officer, observes that in a very short time the company had to establish a new brand name in the minds of the people and use the L&T mind space. The task was Herculean. Explaining the strategy behind the new brand name, Mr. Puranmalka said: "We wanted to capture the gene code of L&T in the new brand name. So we commissioned research on customer perception about the L&T Cement brand. Of course, we were very sure in our minds that L&T Cement epitomised engineering prowess, technology quality and modernity." In step with its global agenda, the cement business of the Aditya Birla Group, is orchestrating a contemporary brand makeover. With UltraTech Cement, the Aditya Birla Group has established itself as not only the most respected domestic player but also among the global leaders in cement. UltraTech has strong competitors like ACC, LAFARGE, AMBUJA Etc., although the Brand Equity of ULTRATECH CEMENT is AT PAR with ACC and LAFAGE, to maintain the same continuous follow-up in all respect is necessary. The Ultratech cement has to adopt necessary strategies to compete with strong competitiors in order to retain its market position and the goodwill in the market.

SUGGESTION On the basis of above study carried out by me,the following suggestions are submitte: To increase the sales of Ultratech Cement in such area there is a need of time to time demo program, seminars & meetings.  There is a need of more promotional activities specially in sub dealer and outside Bhagalpur area.  Time to time offers should be provided to the customer from our Ultratech company.  Need to available all the construction parts, material and tools our distributor office.  Ultratech Company should be change the colour of PSC bags.  The company must improve its supply so as the demand for the cement can easily be met.  It must target the rural markets as they are providing a good marketing opportunity these days.

BIBLIOGRAPHY  http://www.ultratechcement.com  http://in.reuters.com/  http://bilumi.org/Main/?gclid=CIub5da1z6QCFVJB6woddHPrEA  http://www.adityabirla.com/social_projects/overview.htm  http://www.google.co.in/url?sa=t&source=web&cd=10&ved=0CD4QFjAJ&url=http %3A%2F%2Fwww.tejwebworld.com%2Fultratech-cement-merger-with-grasimcementarm%2F&rct=j&q=subsidiary%20of%20ultratech%20cement&ei=4Oq1TIUfyqVwkI _s6gg&usg=AFQjCNE6036915loMbkHBFho7b3plsE13Q&sig2=3STan-PQcNAKu1etgqsIg