Gujarat Ambuja Cement Limited | Operations Management

Gujarat Ambuja Cement Limited | Operations Management

1. GUJARAT AMBUJA CEMENT LTD. PRESENTED BY: LAVISH KHURANA LOKENDRA SINGH RATHORE MANASI AGARWAL NAVLIKA SINHA SUKEERTI SHARMA SUBMITTED TO: DR. D SUBRAMANIAM

2. PROMOTER & CHAIRPERSON: NAROTAM SEKHSARIA DEPUTY CHAIRPERSON, MD & CEO: AJAY KAPUR

3. A MBUJA CEMENT Sea terminals Started production in 1986 1986 2002 Capacity 0.7 13 mn tons Cement Factory

4. WHY CEMENT INDUSTRY? CAPITAL INTENSIVE INDUSTRY STABLE PRODUCT BASIC INDUSTRY

5. GUJARAT AMBUJA'S GROWTH 3rd LARGEST PLAYER IN INDIA

6. HOW ?

7. FOCUS ON CRITICAL FACTORS LOWEST CAPITAL COST PER TON 100% CAPITAL UTILISATION LOWEST POWER CONSUMPTION FOCUS ON CEMENT SHELVED DIVERSIFATION MAXIMISE VOLUME AND ACHIEVING MARKET SHARE

8. S T RA T E G I C INVES T ME N TS Unit at Himachal Pradesh The Himachal Pradesh plant with grinding facility in Punjab was a master-stroke which has given GACL handsome sustainable advantage over competitors‘ plants located in Rajasthan and Madhya Pradesh. Opening the Sea Route Mumbai was a distance of 1060km by rail from its plant in Gujarat involving: Huge transportation cost. Packing cost. Delay in delivery. Sea route bridged the distance to just 315 km Bulk Cement Transportation at Port Ambuja Ambuja Shikhar became the country's first-ever ship to carry bulk cement in September 1993.

9. AMBUJANAGAR “GUJAMBUJA CEMENT” , PLANT WAS SET UP IN AMBUJANAGAR IN 1993. COMPANY”S ENGINEERS SET UP THIS PLANT IN RECORD TIME OF 13 MONTHS IN 1996, SET UP A 1 MN TONNE PLANT REDUCED STABILISING TIME FROM 18 MONTHS TO 3 MONTHS BY USING INNOVATIVE TECHNOLOGY AND REDUCING POWER COST. PRESENCE IN THE WESTERN INDIA AND INCREASED ITS CAPACITY AT AMBUJANAGAR TO 3 MN TONNES

10. Innovation GACL i s a succe s s stor y of c onti n uous entrepr e neurs h ip a c an - d o a pproach , con s tantl y w orking on t h e cr i t i c a l s ucc ess factors , inno va ti o n a nd a g gression. Improved energy efficiency Ran the existing plant at 149 percent capacity. Coal consumption brought down from 761 to 720. Power consumption reduced from 92 to 88 units per tonne. Acquired new machinery to increase usable limestone and reducing energy consumption. Producing PPC ( P ozzolana P ortland C ement) In association with P unjab state electricity board Consuming fly ash and producing various grades of cement. Bharat diamond bourse contract A new chloride resistant cement introduced by R&D department for Chloride rich soil. Used efficient devices-surface miner m ethods for minimising turbulences during drilling and blasting process.

11. Value Chain A value chain is a set of activities that a firm operating in a specific industry performs in order to deliver a valuable product orservice for the market.

12. SWOT

13. STRENGTHS Lower energy cost due to imported calorific value coal and use of non-conventional fuels.   Lower transportation cast due to increased transport through railway.  Very high brand identity.   Excellent innovation engineering and technological skill useful for operating excellence. Very less dependent on government for coal and power.   Favorable location having raw material site at a distance of 1 km near the production line. First cement producer of the country to embrace modern approach of integrated logistic system. Cutting edge IT enabled tools A well developed system of inbound raw material—(limestone from nearby mines) First cement industry in India to use water transport system for domestic as well as export purpose large distribution network of around 11500 outlets

14. WEAKNESSES Cement industry is highly fragmented Demand-supply gap, overcapacity Increasing cost of production High interest rates Packaging

15. OPPORTUNITIES Higher production of agricultural sector & service sector may result into higher purchasing power, which will increase demand. Stability of Government may result into higher FDI inflow which will give rise to MNC‟s entry in India, which would require operations in India. Thus large infrastructure projects and related requirements of housing and accommodation will boost cement sales. New product usage of RMC (Ready Mix Concrete) would the demand.

16. THREATS Threats from the economic cycles. i.e. Recession or growth. Change in Government policies in term of coal, diesel, raw material and transport. Exchange rate fluctuation having direct effect on bottom line as well as on export.

17. THANK YOU.