- EGL, an associate of Arco Ltd, decided to enter the ready mix concrete (RMC) business in India and established a plant in Kolkata in 2005.
- The plant struggled financially and did not meet projections. After 3 years of poor performance, EGL executives decided to close the plant in February 2008.
- EGL hoped to utilize unused construction equipment by operating an RMC plant. However, the plant faced issues with sales projections and changing market conditions.
Summer Training Report at Simplex Infrastructures and Salarpuria Joint Ventur...Arijit Acharya
A report on my month long summer training at Silveroak Estate, a joint venture project of Simplex Infrastructures and Salarpuria Group.
Organization: Simplex Infrastructures Ltd.
Duration: 30 days (1st – 30th July, 2014)
Location: Silver Oaks Housing Project, Rajarhat
Description: Through this training gained knowledge about the procedure of residential building construction, safety measures at site, plastering and finishing work, concreting work, reinforcement details, quality control etc.
The document provides information on several Indian cement companies, including ACC Limited, India Cement Limited, Gujarat Ambuja Cement Ltd, JK Cement, and UltraTech Cement. It discusses the history and operations of each company. It also describes the research methodology used in the document, which includes analyzing financial ratios over the last 3 years to compare the economic performance and condition of the selected cement companies. The analysis finds that Ambuja Cement and JK Cement show the best overall positions across ratios, while the ranking from strongest to weakest performance is JK Cement, Ambuja Cement, ACC Limited, India Cement, and UltraTech Cement.
Organuzational Study of The Ramco Cements 2014snehal thomas
The document provides background information on The Ramco Cements Limited, including its incorporation, history, and products. The Ramco Cements Limited was founded in 1962 and is the flagship company of the Ramco Group, which was started in 1938 by PACR and includes various companies in cement, software, textiles, and other industries. The Ramco Cements Limited manufactures cement and ready mix concrete, with 8 production facilities across India and a total production capacity of 16 MTPA.
IRJET- Enhancement of Highway Project Performance using Lean Construction MethodIRJET Journal
This document discusses using Lean Construction methods to improve highway project performance in Northern India. It begins with an abstract that introduces Lean Construction and its potential benefits for improving system efficiency in the construction sector. The introduction then provides more background on Lean principles and how they aim to reduce waste in workflow. Some key causes of delays in construction projects are also summarized from previous studies. The methodology section proposes analyzing Lean performance at construction sites and noting expected benefits. It introduces applying attributes of the Toyota Way model to transform sites into Lean organizations and help address delays. Overall, the document argues that adopting Lean principles from Toyota, such as long-term decision making and self-reliance, can help solve problems that plague the construction industry in India.
This document is a summer project report submitted by Shubhajit Mitra to partially fulfill the requirements of a PGDM degree. The project involved inventory optimization at Tata Cummins Ltd. by separating unique parts, creating a nomenclature for the part creation process, and defining minimum and maximum quantities for C-class category items. The report includes an introduction to TCL, descriptions of the project and parts creation process, research methodology, and recommendations for creating a nomenclature for part descriptions and defining min-max quantities.
The document provides information about the cement industry in India. It discusses the manufacturing process, major players, investments, government policies, and challenges faced by the industry. The key points are:
1) India is the second largest cement producer globally and the industry employs over a million people directly and indirectly.
2) Major players like UltraTech Cement, ACC Ltd, and Ambuja Cements have large production capacities across India.
3) The government aims to boost infrastructure spending which will increase cement demand, and it has implemented policies to support private sector investments in the industry.
4) However, excess capacity and high taxes on cement remain challenges for the industry's growth.
Civil engineering has played an important role in turning India into the economic powerhouse it is today.
Here is a list of the top civil engineering companies which have contributed to the development of the country with their projects.
https://realestateandepc.wordpress.com/2023/09/22/top-10-civil-engineering-companies-in-india/
While infrastructure forms the core of the nation’s economy, sustenance and performance, the right investments can generate awesome returns. Soft Infrastructure like the healthcare system, Hard Infrastructure like highways, and Critical Infrastructure like electricity are the chief components. Researched choices of the Best Infrastructure Stocks to buy require time and patience along with financial skills and know-how. Go ahead and choose the most dynamic Infrastructure Companies in India for worthy investments with almost no chances of loss.
Among the Best Infrastructure Stocks to buy in a scenario that is constantly changing are Larsen & Toubro, Reliance, Jaiprakash and Nagarjuna Constructions, among many others. Some of the largest and most crucial Infrastructure Companies in India are Adani, Siemens, BHEL and Thermax, to name a random few.
Summer Training Report at Simplex Infrastructures and Salarpuria Joint Ventur...Arijit Acharya
A report on my month long summer training at Silveroak Estate, a joint venture project of Simplex Infrastructures and Salarpuria Group.
Organization: Simplex Infrastructures Ltd.
Duration: 30 days (1st – 30th July, 2014)
Location: Silver Oaks Housing Project, Rajarhat
Description: Through this training gained knowledge about the procedure of residential building construction, safety measures at site, plastering and finishing work, concreting work, reinforcement details, quality control etc.
The document provides information on several Indian cement companies, including ACC Limited, India Cement Limited, Gujarat Ambuja Cement Ltd, JK Cement, and UltraTech Cement. It discusses the history and operations of each company. It also describes the research methodology used in the document, which includes analyzing financial ratios over the last 3 years to compare the economic performance and condition of the selected cement companies. The analysis finds that Ambuja Cement and JK Cement show the best overall positions across ratios, while the ranking from strongest to weakest performance is JK Cement, Ambuja Cement, ACC Limited, India Cement, and UltraTech Cement.
Organuzational Study of The Ramco Cements 2014snehal thomas
The document provides background information on The Ramco Cements Limited, including its incorporation, history, and products. The Ramco Cements Limited was founded in 1962 and is the flagship company of the Ramco Group, which was started in 1938 by PACR and includes various companies in cement, software, textiles, and other industries. The Ramco Cements Limited manufactures cement and ready mix concrete, with 8 production facilities across India and a total production capacity of 16 MTPA.
IRJET- Enhancement of Highway Project Performance using Lean Construction MethodIRJET Journal
This document discusses using Lean Construction methods to improve highway project performance in Northern India. It begins with an abstract that introduces Lean Construction and its potential benefits for improving system efficiency in the construction sector. The introduction then provides more background on Lean principles and how they aim to reduce waste in workflow. Some key causes of delays in construction projects are also summarized from previous studies. The methodology section proposes analyzing Lean performance at construction sites and noting expected benefits. It introduces applying attributes of the Toyota Way model to transform sites into Lean organizations and help address delays. Overall, the document argues that adopting Lean principles from Toyota, such as long-term decision making and self-reliance, can help solve problems that plague the construction industry in India.
This document is a summer project report submitted by Shubhajit Mitra to partially fulfill the requirements of a PGDM degree. The project involved inventory optimization at Tata Cummins Ltd. by separating unique parts, creating a nomenclature for the part creation process, and defining minimum and maximum quantities for C-class category items. The report includes an introduction to TCL, descriptions of the project and parts creation process, research methodology, and recommendations for creating a nomenclature for part descriptions and defining min-max quantities.
The document provides information about the cement industry in India. It discusses the manufacturing process, major players, investments, government policies, and challenges faced by the industry. The key points are:
1) India is the second largest cement producer globally and the industry employs over a million people directly and indirectly.
2) Major players like UltraTech Cement, ACC Ltd, and Ambuja Cements have large production capacities across India.
3) The government aims to boost infrastructure spending which will increase cement demand, and it has implemented policies to support private sector investments in the industry.
4) However, excess capacity and high taxes on cement remain challenges for the industry's growth.
Civil engineering has played an important role in turning India into the economic powerhouse it is today.
Here is a list of the top civil engineering companies which have contributed to the development of the country with their projects.
https://realestateandepc.wordpress.com/2023/09/22/top-10-civil-engineering-companies-in-india/
While infrastructure forms the core of the nation’s economy, sustenance and performance, the right investments can generate awesome returns. Soft Infrastructure like the healthcare system, Hard Infrastructure like highways, and Critical Infrastructure like electricity are the chief components. Researched choices of the Best Infrastructure Stocks to buy require time and patience along with financial skills and know-how. Go ahead and choose the most dynamic Infrastructure Companies in India for worthy investments with almost no chances of loss.
Among the Best Infrastructure Stocks to buy in a scenario that is constantly changing are Larsen & Toubro, Reliance, Jaiprakash and Nagarjuna Constructions, among many others. Some of the largest and most crucial Infrastructure Companies in India are Adani, Siemens, BHEL and Thermax, to name a random few.
This document provides an overview of the cement industry in India. It discusses the key players in the industry such as UltraTech Cement and ACC Ltd. It also outlines the manufacturing process, factors affecting industry growth like economic conditions, and investments being made to expand capacity. The government's role in promoting infrastructure development to drive cement demand is also summarized. Challenges facing the industry like excess capacity and high taxes are mentioned.
Om Prakash Pandey has over 25 years of experience in procurement and project management roles for large steel and aluminum companies in India and abroad. His most recent role is as Chief Procurement Officer for ArcelorMittal Temirtau in Kazakhstan, where he leads procurement of $1.1 billion annually and has delivered over $200 million in savings. He holds an engineering degree from IIT Kharagpur and an MBA and has a proven track record of successfully delivering large capital projects on time and on budget.
This investor presentation by Sunil Hitech Engineers provides an overview of the company and its business segments. Some key points:
- Sunil Hitech Engineers is an Indian EPC company operating in sectors like power, construction, infrastructure, etc.
- The company has a presence across 17 states in India and has executed projects for major clients.
- Key business segments include EPC projects for roads/highways, buildings, power plants, manufacturing, and operations & maintenance.
- As of Sept 2016, the company had an order book of Rs. 3,694 crores spanning various segments like power, roads, buildings, and others.
- The presentation outlines the company's strengths, key projects and
This document appears to be a student project report submitted by Himanshu Kumar on his summer training internship at TRF Ltd studying their manufacturing processes. The report includes an acknowledgements section, introduction to TRF, executive summary of TRF's business, and sections on various work production departments and major components manufactured at TRF such as pulleys, idlers, feeders, side discharge loaders, and screens. It also provides technical details about side discharge loaders as its example product.
Synopsis for insustrial training of Civil engineering Ram1239
This document provides details about Suraj Kakkar's six-month industrial training project with NKG Infrastructure Ltd in Jalandhar Cantt, India from July 31, 2014 to November 31, 2014. It gives an introduction to the company and information about the Married Accommodation Project it is undertaking. This project involves the construction of 528 dwelling units across 22 blocks that are G+6 storeys. The document outlines the planning, facilities, and Suraj's role during the training period, which includes understanding drawings, construction methods, and learning on-site work practices.
Engineers India Ltd (EIL) is offering 33.7 million shares, or 10% of its total shares, through an initial public offering. EIL provides engineering services to the oil and gas industries and has experience with 49 refinery projects, 7 petrochemical complexes, and various other infrastructure projects. The IPO price band is Rs. 270-290 per share and is expected to raise Rs. 909.7-977.1 crore. EIL has a strong order backlog of Rs. 6,236.8 crore and has experienced high revenue and profit growth in recent years. Proceeds will go to the selling shareholder, not the company.
C.R. Muralidhara has over 30 years of experience in industrial development, project management, and consulting in India. He currently serves on the boards of two aerospace companies in the UK and assists with implementing projects in Bangalore, including a gear pump manufacturing facility. His background includes director roles with several companies, as well as experience in areas such as project appraisal, monitoring, entrepreneurship guidance, and computerization of operations with Karnataka State Industrial Investment and Development Corporation Limited. He holds a Post Graduate Diploma in Business Administration and a Bachelor's Degree in Electrical Engineering.
The document presents a pre-feasibility study for establishing a steel rolling mill in Anwerabad Sanawan with an annual production capacity of 24960 tons. The proposed mill would produce round bars and merchant steel. Total project cost is estimated at Rs. 2.658 million. Key assumptions include a 5 month construction period, 330 working days per year, and capacity utilization growing from 55% in the first year to 85% over time. The study finds that the project would be financially viable based on estimated sales prices and production costs.
This document discusses asset management at ACC Limited, an Indian cement manufacturer. It provides background on ACC's corporate profile, vision, mission and cement manufacturing process. The objectives of the study are to understand asset management, current asset values, capital expenditures and capitalization policies. The organizational structure of ACC's finance department is described, including the modules in its SAP ERP system with a focus on asset management. Physical verification of fixed assets, capital expenditure procedures and categories of capital expenditures are also outlined.
UltraTech Cement Ltd. acquired J K Lakshmi Cement Ltd. to gain operating synergies through reduced raw material and transportation costs. The acquisition also provides UltraTech access to J K Lakshmi's established distribution network in eastern India. The cement industry is highly consolidated, so this acquisition allows UltraTech to maintain its position as a top cement producer without having to undertake a costly greenfield expansion project. The valuation of J K Lakshmi Cement used industry-specific benchmark multiples and comparable company analysis.
Financial Analysis of Jaiprakash Associates LtdIshfaq Shah
Jaiprakash Associates Limited (JAL) is the engineering and construction arm of the Jaypee Group focused on developing river valley and hydroelectric projects. JAL was incorporated in 1996 through the merger of Jaiprakash Industries Limited and Jaiprakash Cement Limited. As an engineering and construction company, JAL specializes in building multi-purpose river valley projects and hydropower plants on a turnkey basis. JAL has executed several major hydroelectric projects across India and neighboring countries. The company has a diversified business portfolio that includes cement, hospitality, real estate, and expressways.
The document is an industrial training report submitted by Raz Mohammad to fulfill requirements for a Bachelor of Technology degree in Civil Engineering. It provides details of the internship, including acknowledging those who assisted and guided the training. The report will analyze and design a proposed circular building for LUVAS in Rohtak, Haryana in two parts: analysis and design. The analysis will examine slabs, beams, and columns, while the design will create slabs, beams, and columns. Standard building codes, loading conditions, materials, and the software STAAD Pro will be used.
Construction and Architecture Magazine 11 may june 2011Remona Divekar
Larsen & Toubro Limited is one of the largest and most reputed engineering and construction companies in India. The document discusses several new construction orders received by L&T's construction division worth over Rs. 1,000 crore for projects like residential buildings, factories, and specialized facilities. It also mentions orders received by L&T's metallurgical and water sectors worth over Rs. 1,100 crore for projects such as processing lines and water supply schemes. Overall, the document outlines significant new order wins for L&T's construction division demonstrating the company's leadership in construction sector.
This document provides a summary of an internship report prepared by Amjad Mehmood and Muddasir Raza for their internship at Zealcon Engineering (Pvt.) Ltd. It begins with a dedication to Zealcon for providing the opportunity. The preface describes what the interns learned during their internship in the Planning Department, including basic project management concepts and training in Primavera P6. It also describes a session in the QHSE Department about ISO certifications. The report then provides details about Zealcon's company profile, including its vision, mission, organizational structure, certifications in QMS 9001:2008 and OHSAS 18001:2007, and business areas. It
UltraTech Cement is India's largest cement producer and the 8th largest globally. It has an annual manufacturing capacity of over 48 million tons through its integrated plants, grinding units, and terminals across India. UltraTech focuses on delivering high quality cement products and construction solutions to customers. It aims to contribute to social and economic development through initiatives like expanding access to housing and infrastructure.
J.K. Cement is one of the largest cement producers in India with over 7.5 MTPA of installed capacity across its plants in Rajasthan and Karnataka. It produces grey cement as well as white cement and wall putty, and competes with major players like Ambuja Cements, Shree Cement and ACC Ltd. The company aims to consolidate its leadership position in white cement and leverage opportunities for growth through expanding operations, improving efficiency, and entering new markets.
UltraTech Cement is India's largest cement producer and the 8th largest globally. It has an annual manufacturing capacity of over 48 million tons through its integrated plants, grinding units, and terminals across India. UltraTech focuses on delivering high quality cement products and construction solutions to customers. It aims to contribute to social and economic development through initiatives like expanding access to housing and infrastructure. The company has adopted strategies such as capitalizing on growth in housing and infrastructure, improving product quality, and increasing marketing efforts to achieve its vision.
The purpose of this PID was to present a feasible strategy for the commercialization of decommissioning by entering into the consortium and to provide a basis for assessing the overall success of the project.
This document provides a comparative analysis of four major cement companies in India: ACC Limited, Ambuja Cements Limited, UltraTech Cement Limited, and JK Cement Limited. It discusses the history, slogans, visions, and major milestones of each company. It also compares their market shares, pricing, distribution, promotions, production volumes, profits, sales volumes, and net worth. Finally, it provides an overview of the Indian cement industry.
The document provides biographical information about Richard L. Daft, the author of the 10th edition of the textbook "Organization Theory and Design." It details his academic background, publications, teaching experience, and consulting work. The biographical section serves as an introduction to establish Daft's expertise and qualifications for authoring a leading textbook on organization theory and design.
The document discusses a new policy that will require all employees to submit a timesheet each week detailing their hours and projects worked on. The policy is meant to improve accountability and provide more transparency about how time is spent. It will take effect next month and all employees will receive training on the new timesheet system and procedures before they are required to use it.
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This document provides an overview of the cement industry in India. It discusses the key players in the industry such as UltraTech Cement and ACC Ltd. It also outlines the manufacturing process, factors affecting industry growth like economic conditions, and investments being made to expand capacity. The government's role in promoting infrastructure development to drive cement demand is also summarized. Challenges facing the industry like excess capacity and high taxes are mentioned.
Om Prakash Pandey has over 25 years of experience in procurement and project management roles for large steel and aluminum companies in India and abroad. His most recent role is as Chief Procurement Officer for ArcelorMittal Temirtau in Kazakhstan, where he leads procurement of $1.1 billion annually and has delivered over $200 million in savings. He holds an engineering degree from IIT Kharagpur and an MBA and has a proven track record of successfully delivering large capital projects on time and on budget.
This investor presentation by Sunil Hitech Engineers provides an overview of the company and its business segments. Some key points:
- Sunil Hitech Engineers is an Indian EPC company operating in sectors like power, construction, infrastructure, etc.
- The company has a presence across 17 states in India and has executed projects for major clients.
- Key business segments include EPC projects for roads/highways, buildings, power plants, manufacturing, and operations & maintenance.
- As of Sept 2016, the company had an order book of Rs. 3,694 crores spanning various segments like power, roads, buildings, and others.
- The presentation outlines the company's strengths, key projects and
This document appears to be a student project report submitted by Himanshu Kumar on his summer training internship at TRF Ltd studying their manufacturing processes. The report includes an acknowledgements section, introduction to TRF, executive summary of TRF's business, and sections on various work production departments and major components manufactured at TRF such as pulleys, idlers, feeders, side discharge loaders, and screens. It also provides technical details about side discharge loaders as its example product.
Synopsis for insustrial training of Civil engineering Ram1239
This document provides details about Suraj Kakkar's six-month industrial training project with NKG Infrastructure Ltd in Jalandhar Cantt, India from July 31, 2014 to November 31, 2014. It gives an introduction to the company and information about the Married Accommodation Project it is undertaking. This project involves the construction of 528 dwelling units across 22 blocks that are G+6 storeys. The document outlines the planning, facilities, and Suraj's role during the training period, which includes understanding drawings, construction methods, and learning on-site work practices.
Engineers India Ltd (EIL) is offering 33.7 million shares, or 10% of its total shares, through an initial public offering. EIL provides engineering services to the oil and gas industries and has experience with 49 refinery projects, 7 petrochemical complexes, and various other infrastructure projects. The IPO price band is Rs. 270-290 per share and is expected to raise Rs. 909.7-977.1 crore. EIL has a strong order backlog of Rs. 6,236.8 crore and has experienced high revenue and profit growth in recent years. Proceeds will go to the selling shareholder, not the company.
C.R. Muralidhara has over 30 years of experience in industrial development, project management, and consulting in India. He currently serves on the boards of two aerospace companies in the UK and assists with implementing projects in Bangalore, including a gear pump manufacturing facility. His background includes director roles with several companies, as well as experience in areas such as project appraisal, monitoring, entrepreneurship guidance, and computerization of operations with Karnataka State Industrial Investment and Development Corporation Limited. He holds a Post Graduate Diploma in Business Administration and a Bachelor's Degree in Electrical Engineering.
The document presents a pre-feasibility study for establishing a steel rolling mill in Anwerabad Sanawan with an annual production capacity of 24960 tons. The proposed mill would produce round bars and merchant steel. Total project cost is estimated at Rs. 2.658 million. Key assumptions include a 5 month construction period, 330 working days per year, and capacity utilization growing from 55% in the first year to 85% over time. The study finds that the project would be financially viable based on estimated sales prices and production costs.
This document discusses asset management at ACC Limited, an Indian cement manufacturer. It provides background on ACC's corporate profile, vision, mission and cement manufacturing process. The objectives of the study are to understand asset management, current asset values, capital expenditures and capitalization policies. The organizational structure of ACC's finance department is described, including the modules in its SAP ERP system with a focus on asset management. Physical verification of fixed assets, capital expenditure procedures and categories of capital expenditures are also outlined.
UltraTech Cement Ltd. acquired J K Lakshmi Cement Ltd. to gain operating synergies through reduced raw material and transportation costs. The acquisition also provides UltraTech access to J K Lakshmi's established distribution network in eastern India. The cement industry is highly consolidated, so this acquisition allows UltraTech to maintain its position as a top cement producer without having to undertake a costly greenfield expansion project. The valuation of J K Lakshmi Cement used industry-specific benchmark multiples and comparable company analysis.
Financial Analysis of Jaiprakash Associates LtdIshfaq Shah
Jaiprakash Associates Limited (JAL) is the engineering and construction arm of the Jaypee Group focused on developing river valley and hydroelectric projects. JAL was incorporated in 1996 through the merger of Jaiprakash Industries Limited and Jaiprakash Cement Limited. As an engineering and construction company, JAL specializes in building multi-purpose river valley projects and hydropower plants on a turnkey basis. JAL has executed several major hydroelectric projects across India and neighboring countries. The company has a diversified business portfolio that includes cement, hospitality, real estate, and expressways.
The document is an industrial training report submitted by Raz Mohammad to fulfill requirements for a Bachelor of Technology degree in Civil Engineering. It provides details of the internship, including acknowledging those who assisted and guided the training. The report will analyze and design a proposed circular building for LUVAS in Rohtak, Haryana in two parts: analysis and design. The analysis will examine slabs, beams, and columns, while the design will create slabs, beams, and columns. Standard building codes, loading conditions, materials, and the software STAAD Pro will be used.
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This document provides a summary of an internship report prepared by Amjad Mehmood and Muddasir Raza for their internship at Zealcon Engineering (Pvt.) Ltd. It begins with a dedication to Zealcon for providing the opportunity. The preface describes what the interns learned during their internship in the Planning Department, including basic project management concepts and training in Primavera P6. It also describes a session in the QHSE Department about ISO certifications. The report then provides details about Zealcon's company profile, including its vision, mission, organizational structure, certifications in QMS 9001:2008 and OHSAS 18001:2007, and business areas. It
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The purpose of this PID was to present a feasible strategy for the commercialization of decommissioning by entering into the consortium and to provide a basis for assessing the overall success of the project.
This document provides a comparative analysis of four major cement companies in India: ACC Limited, Ambuja Cements Limited, UltraTech Cement Limited, and JK Cement Limited. It discusses the history, slogans, visions, and major milestones of each company. It also compares their market shares, pricing, distribution, promotions, production volumes, profits, sales volumes, and net worth. Finally, it provides an overview of the Indian cement industry.
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The document discusses a new policy that will require all employees to submit a timesheet each week detailing their hours and projects worked on. The policy is meant to improve accountability and provide more transparency about how time is spent. It will take effect next month and all employees will receive training on the new timesheet system and procedures before they are required to use it.
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[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
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These materials are perfect for enhancing your business or classroom presentations, offering visual aids to supplement your insights. Please note that while comprehensive, these slides are intended as supplementary resources and may not be complete for standalone instructional purposes.
Frameworks/Models included:
Microsoft’s Digital Transformation Framework
McKinsey’s Ten Guiding Principles of Digital Transformation
Forrester’s Digital Transformation Framework
IDC’s Digital Transformation MaturityScape
MIT’s Digital Transformation Framework
Gartner’s Digital Transformation Framework
Accenture’s Digital Strategy & Enterprise Frameworks
Deloitte’s Digital Industrial Transformation Framework
Capgemini’s Digital Transformation Framework
PwC’s Digital Transformation Framework
Cisco’s Digital Transformation Framework
Cognizant’s Digital Transformation Framework
DXC Technology’s Digital Transformation Framework
The BCG Strategy Palette
McKinsey’s Digital Transformation Framework
Digital Transformation Compass
Four Levels of Digital Maturity
Design Thinking Framework
Business Model Canvas
Customer Journey Map
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Launch and closure of an Indian cement plant Decision making at Arco Ltd and EGL, its Associate.pdf
1. Emerald Emerging Markets Case Studies
Launch and closure of an Indian cement plant: Decision making at Arco Ltd and EGL, its Associate
Margie Parikh
Article information:
To cite this document:
Margie Parikh, (2011),"Launch and closure of an Indian cement plant", Emerald Emerging Markets Case Studies, Vol. 1 Iss 1
pp. 1 - 11
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2. Launch and closure of an Indian cement
plant
Decision making at Arco Ltd and EGL, its Associate
Margie Parikh
A
run Mishra, the President and Mr Pulin Kamath, the Senior General Manager of EG Ltd
(EGL), a Heavy Equipment Rentals Company, ended their meeting in February 2008
after reviewing the financial reports of its Kolkata Ready Mix Cement (RMC) plant
(Figure 1).
The two executives had been disillusioned by the plant’s performance in 2007-2008, little
over three and a half years of life since the first feasibility report in 2004. None of the five
plant heads could check the projections from going haywire – especially the sales
numbers, and the request to revise the projections had been turned down by the senior
management with caustic remarks. The Senior GM’s comment on the first page of the
rejected proposal read:
[the] ground realities are to be factored in [the] ‘project reports’ and not post implementation.
If [the] only answer to any change is change in revenue/returns, rather than change in ‘go to
market’ strategy, then [it should have been thought] of [. . .] before.
At a first glance it appears to be a reasonable response to an error in a decision: a decision to
enter an apparently lucrative business now seemed like a mistake, and management decided
to quit by way of damage control. However, if one drew a timeline of the major events (Figure 2),
one wonders how in three years things changed that a newly started project had to close. What
wentwronginthefirstplace?Anyattempttoanswerthesequestionswouldrequireanattemptto
understand the decision process at Arco and EGL involving their foray into RMC business and
their rather quick retreat.
Arco Limited: an introduction
Arco Limited (Arco henceforth), is a giant Indian conglomerate. It has various subsidiaries in
all the five continents. These subsidiaries make Arco a strong service provider in the Oil and
Gas, Infrastructure and Petrochemical domains. For the large, global player that it is today,
Arco has had a modest start. Incorporated as Arco Engineering Private Limited in 1988 in
India, it was renamed Arco Private Limited in the following year and then became a public
Limited Company in 1992.
While Arco had started with contracts to lay pipelines, it soon moved to erection of tanks,
refineries, power and civil infrastructure. Now the company has expanded its portfolio to a
whole range of services that integrate the business upward, downward and horizontally in
the energy sector, petrochemicals, chemicals, bio-fuels, utilities and construction.
EGL was established as an Arco associate in order to take care of businesses other than the
Construction and engineering-procurement-construction contracts. The main function of
EGL was to provide various equipments that Arco required on its projects. Being a rental
company, EGL could get very competitive rates for Arco and then return, dispose of or
reassign redundant and unutilized equipments.
DOI 10.1108/20450621111125450 VOL. 1 NO. 1 2011, pp. 1-11, Q Emerald Group Publishing Limited, ISSN 2045-0621 jEMERALD EMERGING MARKETS CASE STUDIES j PAGE 1
Margie Parikh is based
at B K School of Business
Management, Gujarat
University, India.
Disclaimer. This case is written
solely for educational purposes
and is not intended to represent
successful or unsuccessful
managerial decision making.
The author/s may have
disguised names; financial and
other recognizable information
to protect confidentiality.
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3. EGL and the RMC business
Since the RMC business in India was in its infancy, EGL planned to be one among its early
movers. After the Senior General Manager – Rahul Sharma was asked to conduct a market
survey among current suppliers and construction contractors; it seemed that the RMC business
hadgreatpotential.HevisitedKolkatainJune2004,metvariouspotentialcustomers,andvisited
the new construction areas in order to understand the existing requirement and explore future
prospects of RMC in and around Kolkata municipal areas to test the feasibility of the project.
Figure 1 A typical RMC plant and a transit mixer
PAGE 2jEMERALD EMERGING MARKETS CASE STUDIESjVOL. 1 NO. 1 2011
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4. The demand of RMC was increasing in metro cities as many of the construction
organizations did not want to compromise on the quality of cement, and the government
bodies also specified the quality norms about the concrete grades to be maintained in all
construction contracts awarded by them. This has given a great boost for growth of RMC
business.
Typically when the Arco project sites closed due to completion, the equipment such as
batching plant, chilling plant, transit mixers, dumper, wheel loader, weigh-bridge, etc. would
be decommissioned and remain idle until some other project came up requiring deployment
of this equipment. If EGL started the RMC business, all this equipment could be utilized for the
manufacture and supply of RMC, contributing to the revenue and profitability. Hosting the new
venture thus became the role of EGL.
Looking at the growth of infrastructure and construction activity in India, it was decided to
establishbatchingplantsatthree‘‘hot’’locationsnamelyGurgaon,Noida(bothinnorthernIndia
near Delhi), and Kolkata (East India). The locational suitability and feasibility of operations at all
three proposed sites was evaluated in 2004. Gurgaon operation started in 2004 but Kolkata
plant lagged behind by one year. Noida proposal did not get the environmental clearance from
the authorities, and was put off for future.
What is RMC?
RMC is a ready-to-use material, with predetermined mixture of cement, sand, aggregates
and water. RMC is a type of concrete manufactured in a factory according to a set recipe or
as per specifications of the customer, at a centrally located batching plant. It is delivered to
a worksite, often in truck mixers capable of mixing the ingredients of the concrete en route.
This results in a precise mixture, allowing specialty concrete mixtures to be developed and
implemented on construction sites. Ideally, the RMC should be poured at the site for use
within five hours of mixing the aggregate, cement, sand and water. If the delivery is
delayed, say due to a traffic jam, an admixture made of substances such as naphthalene
and melamine has to be added at regular interval to prevent the cement from setting even
as it is constantly stirred. These ad mixtures are carried along by the drivers of the transit
mixtures.
RMC has various advantages over site mixed concrete in spite of its short shelf life and slightly
higher price. Once the standard for desired strength or grade of cement is specified, the
automated mixing of the required ingredients by a computerized plant ensures consistency in
proportion of material irrespective of the size of the project, total quantity of cement to be
supplied or number of batches to be prepared. Construction is thus made more reliable and
durable. With use of RMC, systematic quality control becomes possible. Consumption of raw
materials is optimized, resulting into operational efficiency and conservation of natural
Figure 2 Timeline of major events concerning entry into and exit from the RMC business
by EGL, an associate of Arco Ltd
June 7, 2004
First field report
Deadline
For detailed
Proposal
July 2004
September 1, 2005
Plant
Commissioned
September 26, 2005
Bottlenecks
Reported,
Projections
Revised
February 2008
Closure
Decision
September 28, 2004
First projections,
RMC Kolkata
October 31, 2005
Revisions rejected
VOL. 1 NO. 1 2011 jEMERALD EMERGING MARKETS CASE STUDIESjPAGE 3
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5. resources. RMC eliminates the need to store basic materials at site as well as the need for
procuring or hiring a plant and machinery to mix those into cement concrete. Wastage of basic
materials is avoided, labor and supervision costs associated with production of concrete are
eliminated, and the construction activity is greatly speeded up. Noise and dust pollution at site
are also reduced. Site organization is more streamlined and focused on the central job:
construction.
The RMC business in India was found nowhere in comparison with developed countries like
Japan, where nearly 70 per cent of cement consumption is in the form of RMC and 25 per
cent in the form of site-mixed cement. In India RMC accounted for less than 18 per cent of
total consumption and as much as 82 per cent of cement consumption was in the form of
site-mixed concrete. Yet it appeared that this was set to change. The cement majors were
anticipating huge potential for the product and at least six of those were planning their foray
into the RMC business. This was likely to jack up the share of RMC relative to the site-mixed
cement and bring it closer to the global average of 70 per cent, according to the industry
players.
Organizational structure of EGL
EGL, like many other companies in business, is organized in a simple structure as shown in
Figure 3.
EGL comes to Kolkata in 2004
Feasibility report
A proposal was created in September, 2004 based on the findings of Rahul Sharma’s visit,
covering the following areas:
1. Location suitability and future trends. Looking into the developments in construction
activities in and around Kolkata, a consistent rise in the demand of RMC was reported. In 2004,
the State Government of West Bengal along with Central Government had undertaken various
development projects within Kolkata. Owing to the development in the areas surrounding salt
lake, the construction activities had picked up.
The survey estimated the market of RMC to the tune of 35,000 to 40,000 cubic meters (cum)
per month, which was projected to go up to 50,000 to 60,000 cum/month in the next financial
year. Most of the construction companies were confident about an annual increase at the rate
of 25-30 per cent over the coming four to five years. The governments were categorically
Figure 3
President
Senior general
manager
Plant head (Gurgaon) Plant head (Kolkata)
Plant head (Noida)
Site staff
On rolls Contracted
Site staff
On rolls Contracted
Site staff
On rolls Contracted
PAGE 4jEMERALD EMERGING MARKETS CASE STUDIESjVOL. 1 NO. 1 2011
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6. mentioning in their tenders that parties should use RMC and they were not allowed to use the
batching plant in the municipal area.
In 2004, there were three areas of Kolkata where construction activities including residential
buildings and other civil projects such as flyovers and subways were in full swing. The metro
rail project was being expanded for another stretch of 20 kilometers. Approximately,
30 flyovers were either under construction or likely to start construction within next six months.
The government had already finalized tenders for ten new water treatment plants outside
Kolkata. All these activities were likely to reach their peak in the next three to four years and so,
the demand of RMC.
2. Estimated demand. Most of the construction companies had set up their own plants with 30
or 60 cum/hour capacity, since the RMC supply in the market was not regular and they had to
solely depend on ACDL for RMC. B&P had also set up a plant, but it was basically meeting the
needs of B&P and their sub contractors. Though B&P also supplied some quantity to others,
it was irregular and depended on surplus generated after catering to captive demand.
Rahul Sharma estimated the market situation if all the parties who expressed desire to start
RMC plant did set those up (Table I). However, he was assured by the cite staff of the following
in Rajarhat and Salt Lake area that they would take major quantities from EGL if the plant was
commissioned in the next three to four months (Table II).
There were some small players whose average off-take was not estimated. The above
demand was inclusive of 20,000 cum/month supply from ACDL, leaving behind a net
shortage of 33,000 cum/month.
3. Estimated prices. The grades popularly in demand in Kolkata market consisted of M-20
which was sold for Rs 2,550/cum and M-25 which was sold at Rs 2,680/cum (Table III for the
complete table). Beyond this range, transportation costs are charged extra. These rates
were exclusive of 11.5 per cent sales tax (only 2 per cent if Form-11 was submitted), but
inclusive of transportation costs if the destination was within 15 kilometers one way from the
plant. Cost for pumping the RMC at site would be borne by the client.
4. Major competitors. Table IV
ACDL. ACDL was a pioneer in commercial RMC in India. The company is the biggest
manufacturer of RMC in India with modern plants in operations. ACDL has three plants each
in Mumbai and Kolkata, four in Bangalore and one each in Chennai, Delhi and Goa (Table V).
Table I Future demand and supply if all proposed plants came up
Particulars 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
Demand (cum p.a.) 6,00,000 7,56,000 9,60,120 12,28,954 15,85,351
Supply (cum/p.a.) 8,80,000 10,40,000 13,40,000 15,20,000 18,00,000
Table II
Construction companies Approximate requirement (per month)
Quintex projects Ltd 10,000 cum
Paragon Civil (Bengal Ahuja) 8,000 cum
Zircon International Ltd 8,000 cum
Unity Development 7,000 cum
Vantia Construction 7,000 cum
Centor Engineering Ltd 5,000 cum
Slavia 5,000 cum
Bridge and Trench Co. (India) Ltd 3,000 cum
Note: Names and location details have been changed to protect the identity of concerned parties
VOL. 1 NO. 1 2011 jEMERALD EMERGING MARKETS CASE STUDIESjPAGE 5
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7. Rahul Sharma visited one of the RMC plants of ACDL in West Bengal and had detailed
discussion with their Project Manager, Mr Mehta. This discussion brought forth some ideas.
ACDL had installed a weighbridge to check that exact quantity of RMC being dispatched to
the clients’ site. The main demand in the market was of M-25 grade of cement, which
constituted roughly 60 per cent of the total market requirement across grades. The raw
material stocked by ACDL was brought from:
Aggregate:
Jharkhand, West Bengal.
Sand:from the river nearby, available in plenty.
Cement:
manufactured by ACDL (home production).
ACDL markets its product in both ways, direct and indirect. Direct marketing method delivered
the promotional materials individually to potential customers via direct mail, telemarketing or
similar means. The indirect marketing targeted the franchisee dealers appointed and
supported by the company on commission basis.
B&P. B&P is the country’s leading construction company and the largest cement manufacturer.
It has constructed some outstanding structures both in India and abroad. It has more than 50
state-of-the-art batching plants out of which 24 are being used for manufacturing RMC for
commercial purpose (Table VI).
5. Fulfillment of government formalities. The essential formalities would include WCT, Sales
Tax Registration, Pollution Control Board Clearance and clearance for land use, etc. would be
required.
Table III Prices for various grades of cement in Kolkata market (2003-2004)
Grade Price (Rs/cum)a
Price (Rs/cum)b
revised in July 2005
M-10 2,350 2,750
M-15 2,450 3,050
M-20 2,550 3,200
M-25 2,680 3,250
M-30 2,850 3,300
M-35 3,000 3,400
M-40 3,120 3,500
Notes: a
Prices are inclusive of transportation charges if the destination is within 15 kilometers from
the plant, but exclusive of other taxes and pumping charges; b
the revised price is inclusive of
12.5 per cent VAT, transportation cost, pouring of concrete; if pouring is not required, a rebate of
Rs 110/cum is offered by competitors
Table IV
Name No. of RMC plants Capacity/hour
ACDL Rajarhatat (2) Joka (1) 30 cum, 60 cum 30 cum
B&P Rajarhatt (1) Proposed – 1 30 cum ? (unknown)
Table V ACDL at Kolkata
Year Total production (cum/month)
2001-2002 12,000
2002-2003 16,000
2003-2004 22,000
PAGE 6jEMERALD EMERGING MARKETS CASE STUDIESjVOL. 1 NO. 1 2011
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8. 6. Plant location. Two locations were recommended – the location north of the city had been
given first preference from the accessibility point of view. The land rentals over there range
between Rs 15 to 16 lakhs per acre per annum for a 15-20 year lease. The second preference
was given to the location west of the city. The 15-20 year lease rental in this area ranges
between Rs 6.5 to 7 lakhs per acre per annum (Figure 4 Kolkata map).
7. Strategic options. It was proposed that EGL join hands with either some cement
manufacturing company or a construction company. This was vital because the health of the
RMC business depended upon the steady supply of cement at favourable prices and other
terms on one hand and the steady orders and regular collections on the other, because the
margins were spread very thin on account of competition. The following options emerged:
B Quintex Projects Ltd had shown keen interest in joining hands with EGL. They were a
successful, three-generation old family-owned civil construction company. They had
Table VI
Growth of B&P at Kolkata
Years Total production (cum/month)
2001-2002 3,500
2002-2003 5,000
2003-2004 7,000
Figure 4 Map of Kolkata
VOL. 1 NO. 1 2011 jEMERALD EMERGING MARKETS CASE STUDIESjPAGE 7
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9. contacts in government circles and were keen to participate in the marketing of RMC on
profit sharing basis.
B Vantia Construction, enjoyed professional reputation could be interested in partnership
B Centor Engineering Ltd had strong contacts with that state government
B EGL waited for Quintex as they informed that they needed to have their own market survey.
This proposed survey by Quintex and their probing with the government authorities would
be over in about 15 days. The other two were not approached by EGL.
8. Operations at the plant
B The first choice was between a 120 cum/hour plant and a 30 cum/hour plant. It was decided
to start the production with 30 cum/hour plant and gradually increase the capacity as the
demand increased. Working hours required and total production per month were
estimated (Table VII).
B Sourcing of raw material. Three components, namely the aggregates, sand and cement
are already discussed earlier in case of ACDL. Additionally, it was found that 10 per cent
discount would be available if aggregates and sand were purchased under annual
contracts. The source of aggregates would be approximately 120-170 kms away, while
the same for sand would be 40-50 kms away. ACDL, B&P and JBL had their own cement
depots at the outskirts of the city and were the most sought after in the city. A discount of
2-3 per cent might be obtained in annual contracts.
B Transit mixers. For an average production of 5,200 cum per month, a fleet of seven transit
mixers would be required.
B Other details. The raw material cost, different from other costs (Table VIII), and Sales were
estimated.
B Financial terms
– Sale. 50 per cent of the sale was estimated to be in cash and 50 per cent on 30-day
credit as per the going practice in the market.
– Procurement. Cement would have to be purchased against cash, while sand and
aggregate could be available on 30-day credit.
Table VII The basis for production estimates
Particulars of output If Plant capacity ¼ 30 cum/hour If Plant capacity ¼ 120cum/hour
Efficiency Factor 0.8 0.75
Output/hour 30*0.80 ¼ 24 cum/hour 120*0.75 ¼ 90 cum/hour
Working/day 10 hours 7 hours
Total Output/Day 24*10 ¼ 240 cum 90*7 ¼ 630 cum
Monthly output
26 working days * 240 ¼ 6,240
cum/month 630 * 26 ¼ 16,380 cum/month
Annual output 6,240 cum * 12 months ¼ 74,880 cum p.a. 16,380*12 ¼ 1,96,560 cum p.a.
Scaling down initial working
Factor of .75 ¼ 74,880 * 0.75 ¼ 54,000
cum p.a.
Factor of .65 ¼ 1,96,560 * 0.65 ¼ 1,27,764
cum p.a.
Production after 5 years 71,100 cum p.a. 1,95,000 cum p.a.
Particulars of working hours
Working hours/month 10*26 ¼ 260 Hours 7*26 ¼ 182 Hours
Actual working hours p.a. when scaled
down to a factor of 0.75
260 * 12 * 0.75 ¼ 195 hours per month or
2,340 hours p.a.
182*12*0.75 ¼ 137 hours per month Or
1,638 hours p.a.
Idle running of the plant
25 per cent of
working ¼ 195 þ (195*0.25) ¼ 243.75
hours
40 per cent
idling ¼ 137 þ (137*0.40) ¼ 192 Hours
Total working per month Approx. 250 hours 192 Hours
PAGE 8jEMERALD EMERGING MARKETS CASE STUDIESjVOL. 1 NO. 1 2011
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10. 9. Financial forecast
B It was decided to rent the land.
B The equipments for the plant, i.e. the batching plant, diesel generating set, weigh bridge
were to be obtained from Arco on equalized monthly installments payment along with
insurance premium. After the completion of finance period these equipments would be
transferred/sold to EGL.
B Apart from equipment finance by Arco, it was proposed to borrow capital which would be
recovered in seven months from the date of commencement of operation.
B Initial investment required for the setting up of the plant, with a lead period of three months
was proposed to be Rs 44.55 lakhs. The working capital requirement was estimated to be
Rs 35 lakhs.
The reality dawns
The proposal was approved by the president, who secured the Board approval. The plant
was commissioned on September 1, 2005. However, as the date approached, things did not
work out the planned way. Rahul Sharma could commission the plant only after a year due to
operational problems mentioned in the review conducted on 26 September, 2005 as follows:
B Want of critical inputs: there was an onset of very heavy monsoon in the region. The spare
parts received from Arco along with equipment were worn out. Those were replaced by
September 27 for full-fledged production activity.
B Delay in transportation: the weighbridge could reach the site in the last week of august.
Computer and printer which were to be sent from Halol site in Gujarat, did not arrive and a
purchase was made after a seven-day delay.
B Paucity of funds: Sharma wrote to Arco:
We regret to inform you that till date our bank loan is not sanctioned and also part payment of Rs
20 lacs which was assured for operational expenses, has not been sent to Kolkata. We are to pay
to our civil contractors and suppliers for erection and commissioning of the plant and also for raw
material stock. The stock of cement is very less and can last only up to 500 cum of M-25 grade
output. It is therefore requested to arrange for funds without any delay failing which the
commercial production is not possible.
The proposal is revised but rejected
By now Sharma had realized that the projections made earlier were way off the realistic
figures both ways – in terms of costs and revenues. So he submitted a revised feasibility
report with the revised projections (Table IX and X). However, the president turned down the
revised feasibility report with a single comment: ‘‘All the activities were under your direct
control. Regret to note the delays. Revised feasibility report is not acceptable’’.
Thus, there was no revision in the set of figures which were to be used as a possibility,
estimate and occasionally even standards and benchmarks, were not adjusted to the new
reality and the activities went on. The following are the highlights of actual performance.
Table VIII Cost estimates for RMC raw material
Material Reqd. qty/cum of RMC Unit cost INR Cost/cum of RMC
Aggregate 0.85 890 756.5
Sand 0.42 426 178.92
Cement 7 150 1,050
Total Raw Material Costs/cum 1,985a
Other direct and indirect expenses 342b
Notes: a
This cost was Rs 2,005/cum because 1 per cent wastage at plant was added in the proposal 2;
b
this cost was Rs 346/cum in the proposal 2
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11. Operations at the plant
B Production. The plant capacity utilization turned out to be around 45 per cent of the
projection with a sharp decline of 30 per cent from the forecasted efficiency. Production
figures fluctuated quite erratically and showed no stability or direction.
B Expenses. The input costs are the most critical component in this industry, and had
deviated from its mean forecast. However, the other expenses worked out to be lower
than the amount projected. The real crunch came from the lack of harmony between the
cash received and cash to be paid out. The biggest head of recurrent cash expense was
cement, which could not be purchased on credit. On the other hand, the RMC was to be
sold at one month credit and as if that was not enough, cement supply was erratic
requiring purchase of quantity little more than the level required for production.
B Marketing and collection. Marketing department handled collection of dues after sales.
A large gap between collected amount and billed amount was observed. The designated
order forms were not filled for many customers with whom the agreement was only verbal.
The company was ready to make the delivery, but the verbal promises did not result into
firm orders. This contributed to an already existing gap between the projected sales and
actual sales. Further, collection did not match the actual sales, and the company
collected approximately Rs one less in the last two years.
B Human resource. The plant head was the key position as far as the plant operations were
concerned, In case of EGL, plant heads did not stay for long. ‘‘We were looking for the
right man, a person who could turn around the situation’’, said Pulin.
B Finance. The projected breakeven levels of output were achieved sporadically four or five
times during the two and half years’ life of the plant. The profits depended critically on
balancing between credit received from vendors and that extended to the suppliers.
B Controls. It seemed that there were reports covering the status quo, but they were not
read carefully by the senior management. Soon it started happening that the different
aspects of the reports would not tally, implying that the MIS had serious problems and
control was endangered.
Table IX Projected and actual production (cum p.a.)
Year Proposal 1 Proposal 2 Actual
2005-2006 53,200 28,750 9,735
2006-2007 57,600 59,700 32,554
2007-2008 62,100 63,190 20,006a
2008-2009 66,600 67,700
2009-2010 71,100 75,150
Note: a
Figures available up to January 2008
Table X Projected sales growth
Estimated RMC market in Kolkata
Year Demand(cum) Demand (Revised) Actual Production
Annual Prorata Annual Prorata
2005-2006 691,200 403,200 3,45,000 2,01,250 9,735
2006-2007 745,200 745,200 7,16,400 7,16,400 32,554
2007-2008 799,200 799,200 7,58,280 6,31,900 20,006
2008-2009 853,200 – 8,12,400 – –
2009-2010 1,585,351 – 9,01,800 – –
Note: a
Actual billing data
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12. Decision to rent over the plant
It was soon clear to the president and SGM that they were bleeding losses. Even if EGL made
a profit, it would be too small an addition to the Arco kitty. Nor was the top management
interested in running it anymore.They opted to rent it out to athird party for Rs 5 Lakhs a month,
a two year contract to start with.
On recovering of investments, the Senior General Manager, Mr Pulin Kamath had
commented:
We have to only pay to our vendors, which can come from any kitty. Our rentals will offset our
losses in some time. All the other players too are either in losses or have profits too thin to mention.
I do not want this anymore, as management is not interested.
Keywords:
Decision making,
Cements,
Behaviour,
Organizational behaviour,
India
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