Download - Ambuja Final
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AMBUJA CEMENT
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GROUP B1
Sampada Rahalkar
Smruti Sherlekar
Shannon Monteiro
Dhara Manek
Ankush Oberoi
Subramanian Ramanathan
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FOUNDATIONS
Began its operations in 1986
The Swiss Company Holcim has a 78% stake inACIL while GACL owns 22%
Capacity built up from 0.7 Mn tonnes in 1986 to18.0 Mn tonnes at present
Vision To be Indias most admired company Mission delighted customers, inspired
employees, empowered partners, energizedsociety
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ST R AT E G YA C O MP R EHEN S I VE P LAN G U I D IN G R ESO U R CE ALL O CAT IO N TO ACH IEVE L O N G -
TE R M O R G AN I ZAT IO N G O AL S
C O MPET IT IVE ADVANTA G E
O PE R AT IN G IN SUCCE SS FUL WAYS THAT A R E D I F F ICULT TO DUPL ICATE
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PORTERS VALUE CHAIN MODEL
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CORPORATE INFRASTRUCTURE
First cement producers of the country to introduce anIntegrated Logistics System (ILS).
Establishment of Internal Audit Framework
Strong financials and expansion strategy throughmergers 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
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HUMAN RESOURCES
Granting Empowerment
Intensive Training Programs abroad
Talent Management
Maintaining a Healthy climate - The Safety
Pyramid
Environmental Initiatives
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TECHNOLOGY
Project Connect
Decision MakingSystemsSAP
P
ollution ControlEquipments
Achieving 148%productivity
NewEquipments
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PROCUREMENT
Basic raw materials: limestone, clay, silica and gypsum
An Australian device Surface Miner was installed in 1997which 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 Proddatur (near Cuddaph) limestone mines
to enhance its presence in Southern India
A strong network of clinkerisation plants and grinding
units
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PROCUREMENT
Cement-Linkages were taken off
Cheaper and better quality coal was sourced fromSouth Africa and furnace oil from the Middle East
Ambujas leading position has strengthened its
bargaining power
The companys engineers had picked up best practices
during visits to overseas plants in countries like Japan
and Australia
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OPERATIONS
Captive power plant
GACL set up captive power plants in Gujarat (40 MW)and Himachal Pradesh (12 MW) in 1998.
Rs 1.30 per kilowatt, compared to Rs 4.50 per
kilowatt
60.3% of its total power requirement
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OPERATIONS
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 gasand oil.
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OPERATIONS
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
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OPERATIONS
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
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OPERATIONS
Going beyond 100% capacity utilization
20 years old Ambujanagar plant, keeps increasing
productivity year after year
At the Mumbai terminal , handling capacity increased to100,000 tonnes as against the terminals stated capacityof 60, 000 tonnes. With no additional capitalexpenditure.
Managed to keep power bills to virtually the sameamounts they were in 1989.
Managed to cut stabilizing time from upto 18 months toa mere 3 months.
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OUTBOUND LOGISTICS
Rs 1 billion - modern ports and freight-handling
terminals at Muldwarka and Surat (south
Gujarat) and Panvel (near Bombay).
Cost of transporting cement to Bombay - Rs 400
per tonne by sea, Rs 1800 per tonne by road.
Cement moved in bulk reduced packaging costs
Savings of roughly Rs 160 million annually
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OUTBOUND LOGISTICS
Far 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.
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MARKETING STRATEGY
Emphasis was on Quality
Advertising and
Publicity campaign
Improvement in Packaging by information
provided by suppliers
Stronger positioning in the housing sector in
smaller towns and rural areas over the last twodecades
FMCG approach was adopted to create a wide
retail network of small shops, down to the village
level
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MARKETING STRATEGY
Channel Excellence Programme (CEP)
Over 7000 dealerships and 20,000 retailersacross India are covered under this
model.
Initiatives are structured and packaged as
AmbujaP
arivar and AmbujaP
arivar Mahotsav.
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COST COMPARISON (08-09)
ACC AMBUJA ULTRATECH
Raw Material 454.48 333.50 335.00
Stock djustments - 104.60 43.00
Staff ost 146.85 137.60 108.00
Power& Fuel 608.76 586.90 777.00
ostof
ra
ded
ement
51.15 - -
Other xpenses 1138.21 1116.5 1081
otal ost Per onne 2399.45 2279.10 2344.00
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MARKET SHARE (08-09)
21.57
18.12
18.57
7.91
10.01
7. 2
5.221.82
5.1 4. 2
ACC
Ambuja Cements
UltraTechCement
Shree Cements
India Cements
Madras Cements
Birla Corp
Prism Cement
Dalmia Cement
Binani Cement
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Increase in Infrastructure
Domestic and International Prices of Coal
Increase In Freight Cost
Increase In Taxes
THE ROAD AHEAD
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Thank You