Ê


m Sampada Rahalkar

m Smruti Sherlekar

m Shannon Monteiro

m Dhara Manek

m Ankush Oberoi

m Subramanian Ramanathan
 VOUNDATIONS

© Began its operations in 1986

© The Swiss Company Holcim has a 78% stake in
ACIL while GACL owns 22%
© Capacity built up from 0.7 Mn tonnes in 1986 to
18.0 Mn tonnes at present
© Vision ʹ To be India͛s most admired company
© Mission ʹ delighted customers, inspired
employees, empowered partners, energized
society
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Y ORTER ͛ S VALUE C HAIN M ODEL
 C ORYORATE I NVRASTRUCTURE

© Virst cement producers of the country to introduce an

Integrated Logistics System (ILS).
© Establishment of Internal Audit Vramework
© Strong financials and expansion strategy through
mergers and acquisitions enabling growth
© Set up own R&D facility in 1989 department to
encourage innovation
© Adhering to International quality standards
© Having stringent Internal Control Systems
 H UMAN R ESOURCES

© Granting Empowerment

© Intensive Training Yrograms abroad

© Talent Management

© Maintaining a Healthy climate - The Safety

Yyramid

© Environmental Initiatives
 T ECHNOLOGY

ͻ Yroject Connect
ͻ Decision Making
SAY Systems

ͻ Yollution Control
New Equipments
Equipments ͻ Achieving 148%
productivity
 Y ROCUREMENT

© Basic raw materials: limestone, clay, silica and gypsum

© An Australian device ͚Surface Miner͛ was installed in 1997

which helped in procuring more limestone from a given
area

© It ensured cement quality

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

Guntur) and Yroddatur (near Cuddaph) limestone mines
to enhance its presence in Southern India

© A strong network of clinkerisation plants and grinding

units
 Y ROCUREMENT

© Cement-Linkages were taken off

© Cheaper and better quality coal was sourced from
South Africa and furnace oil from the Middle East
© Ambuja͛s leading position has strengthened its
bargaining power
© The company͛s engineers had picked up best practices
during visits to overseas plants in countries like Japan
and Australia
 O YERATIONS

© Captive power plant

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

© Rs 1.30 per kilowatt, compared to Rs 4.50 per

kilowatt

© 60.3% of its total power requirement

 O YERATIONS

© Coal production - central and eastern parts

© the cement industry - western and southern parts
© Transporting coal
© Quality of coal
© Cement companies had to decide whether to use
imported coal or substitutes like lignite, natural gas
and oil.
 O YERATIONS

© Imported coal
© Imported better quality furnace oil
© Operating costs of power plants
© Consumed only 96 kwh of power per tonne of
cement against the industry average of 110-115
kwh per tonne
 O YERATIONS

© Coal - 170 kg per tonne of cement, industry

average 250 kg per tonne

© Ambuja Nagar plants located in the agricultural

belt of Saurashtra, groundnut husk available in
plenty

© Groundnut husk, crushed sugarcane

 O YERATIONS

© Going beyond 100% capacity utilization

© 20 years old Ambujanagar plant, keeps increasing
productivity year after year
© At the Mumbai terminal , handling capacity increased to
100,000 tonnes as against the terminals stated capacity
of 60, 000 tonnes. With no additional capital
expenditure.
© Managed to keep power bills to virtually the same
amounts they were in 1989.
© Managed to cut stabilizing time from upto 18 months to
a mere 3 months.
 O UTBOUND L OGISTICS

© Rs 1 billion - modern ports and freight-handling

terminals at Muldwarka and Surat (south
Gujarat) and Yanvel (near Bombay).

© Cost of transporting cement to Bombay - Rs 400

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

© Cement moved in bulk ʹ reduced packaging costs

© Savings of roughly Rs 160 million annually

 O UTBOUND L OGISTICS

© Var less wastage and spillage

© Untouched by human hand - finest quality
© Many coastal markets within easy reach, became
one of the largest exporters of cement
© Convenience to import coal owing to the ports
© Strong focus on logistics management - reduce
finished goods inventory levels
© A Mumbai dealer could obtain stocks within 8 hrs
because of the company-owned jetty where the
cement was packed at the rate of 100 tonnes/hr.
 M ARKETING S TRATEGY

© Emphasis was on Quality

© Advertising and Yublicity campaign
© Improvement in Yackaging by information
provided by suppliers
© Stronger positioning in the housing sector in
smaller towns and rural areas over the last two
decades
© VMCG approach was adopted to create a wide
retail network of small shops, down to the village
level
 M ARKETING S TRATEGY

© Channel Excellence Yrogramme (CEY)

© Over 7000 dealerships and 20,000 retailers
across India are covered under this
model.
© Initiatives are structured and packaged as
Ambuja Yarivar and Ambuja Yarivar Mahotsav.
 C OST C OMYARISON (08-09)

 
 


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 M ARKET SHARE (08-09)

5.1 4. 2
1.82
5.22
21.57
ACC
7. 2
Ambuja Cements

10.01 UltraTechCement
18.12 Shree Cements

7.91 India Cements

Madras Cements
18.57 Birla Corp
Yrism Cement
Dalmia Cement
Binani Cement
 T HE R OAD A HEAD

ͻ Increase in Infrastructure
A
ͻ Domestic and International Yrices of Coal

ͻ Increase In Vreight Cost

ͻ Increase In Taxes
Thank You