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AMBUJA CEMENT LIMITED

Plant Location
Production Capacity

South West Region--7.5 million ton

North Central Region--8.0 million ton

Eastern Region--3.0 million ton

I Can…
‘To be India’s most admired company’
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 Strategies Adopted By ACL

• 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
Business Level Strategy
 Marketing Strategy
• Emphasis was on Quality
• High spending for BRANDING-3 times than
ACC at one time
• Improvement in Packaging by information
provided by suppliers
• Promotion through seminar, workshops for
masons, architects,
• Advertising and Publicity campaign
 SWOT ANALYSIS
Strength
•Growth at approx CAGR of 9% in last 5
years
•Growing Domestic cement consumption
at approx CAGR of 8% in last 3 years
• Highly Capital Incentive so difficult for
small entrant
• Not much restriction by govt.
• Market consolidation taking place
Opportunity
•High Mortgage Penetration – Low
Interest Rates
•Easy loan availability for housing finance
•Increased investments in Infrastructure
•Increased govt. outlay on BHARAT
NIRMAN, GOLDEN QUADRILATERAL,
BRTS etc.
Weakness
• High Oil Prices, Cost of Power increase
production cost
•Supply exceeds Production lead to
competition in price
•Low Quality as compared to
international standard but improving
Opportunity
Threat
•Further Hike in Oil Prices
•Use of plastic engineering in
construction
•Sub prime market loss may affect
 Competitive Strategy

• Low Cost Strategy

 Freight: The most successful of ACL’s innovative
strategies of cost cutting was idea of Sea
Transportation

 Fuel: Fuel strategy was also cost cutting factor

 Power: They have established their own captive

power plant of 178 Megawatts
 Other Strategies Applied
• Corporate Social Responsibility, Health and
Safety

• Sustainable Environmental Performance

 Recommended Statements
‘To be the best company in India-- in the eyes of
our customers, shareholders and society’–
VISION
‘Sustainable Mix of Organic and Inorganic
growth through delighted customers and
energized society’-- MISSION
 Board Strategies
• Captive Infrastructure: Ports & Power Plants
• Presence in the growing markets of North &
West
• Retail Focus – Premium pricing
• Largest Exporter of cement
• 35% Cement transport by sea - Cheapest
Mode
• One of the Lowest Cost Cement Producer
 Achievement’s of ACL

• Most profitable cement company in India

• The only cement company to be awarded with
national quality award.
• Received ISO 14000 certification for
environmental systems
• India’s largest exporter of cement