Download - Cement industry ultra tech cement
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: Submitted By:
Faculty Name: Dr.Ajay Pratap Singh 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 1-4
COMPANY SPECIFIC 5-9
VISION 10
MISSION 10
CODE OF CONDUCT 11-12
MILESTONE 13-14
MANAGEMENT TEAMS 15
PRODUCTS 16-22
MERGERS 23-28
CSR 29-36
SWOT 37-40
SUGGESTION 41
BIBLIOGRAPHY 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 2009–10 (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 23–25 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
2007–March 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 2–3 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 Group’s 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 world’s 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 world’s top 15 BPO companies and among India’s 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 are-
1. 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 Group’s 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 calibratio n 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 Company-
1 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.
5 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.
6 Shall not commit any offences involving moral turpitude or any act contrary to law or
opposed to the public policy.
7 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.
8 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.
9 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. Company’s steps in the form of
cement / clinker capacity addition, new thermal power plants and capital productivity should
partially offset the impact on margins.
Company’s 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.
Company’s 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 Q1FY’09. Profit before interest, depreciation
and tax at ` 751 crores vis-a-vis ` 472 crores in Q1FY’09 rose by 59% and Profit after tax at `
418 crores as against `.265 crores for the corresponding period in FY’09 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 UltraTech’s 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 Grasim’s
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 India’s 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 Grasim’s 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 Grasim’s 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 Grasim’s 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 Grasim’s 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 $160 a tonne for Shree Cement. UltraTech will be
re-rated substantially post-merger.
Grasim will continue to invest in cement through UltraTech though the mode of
investment (debt or equity) will be decided at the appropriate time. The group does not
propose to add any new business to Grasim as it wants to retain its identity of a textile
company.
Facts About Company
The Aditya Birla Group is the ninth-largest cement producer in the world
Incorporated on 24 August 2000 as L&T Cement Limited
Cement business of Larsen & Toubro Limited demerged and vested in company in
2004
Grasim acquired management control in July 2004
Together with Grasim, one of the largest cement producers in India
Name changed to UltraTech Cement Limited with effect from 14 October 2004
Narmada Cement Company Limited amalgamated with UltraTech in May 2006
Cement business of Grasim demerged and vested in Samruddhi Cement Limited in
May 2010
Samruddhi Cement Limited amalgamated with UltraTech Cement Limited in July
2010
UltraTech Cement To Purchase 80% of Star Cement (Dubai)
The UltraTech Cement Ltd, a subsidiary of Aditya Birla group, will purchase around
an 80% stake in Dubai’s ETA Star group-owned Star Cement Co. Llc. for an enterprise value
of US$ 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 Grasim’s 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 company’s 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 company’s 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
Children’s 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 School’s, ‘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. UltraTech’s 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 India’s largest cement
company.
In the present day context, UltraTech is playing an important role in the infrastructural
development of the country. No wonder, UltraTech’s 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-grasim-
cement-
arm%2F&rct=j&q=subsidiary%20of%20ultratech%20cement&ei=4Oq1TIUfyqVwkI
_s6gg&usg=AFQjCNE6036915loMbkHBFho7b3plsE13Q&sig2=3STan-PQcNAK-
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