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 ofManagement Studies, Noida hereby declare that the Seminar Report-108 entitled CementIndustry-UltraTech Cement is an original work and the same has not been submitted to anyother Institute for the award of any other diploma. The suggestions as approved by the facultywere duly incorporated. Signature of StudentCountersignedSignature of Faculty Guide
ACKNOWLEDGEMENT I would like to express my deep gratitude to all those who, directly or indirectly madethis project possible. I have got considerable help and support in making this project report a reality frommany people. Firstly I would like to thank Institute of Management Studies, Noida for giving me theopportunity to do this work. I would also like to convey my special thanks to my projectguide Dr. R.S.Raj Purohit, whose endeavour for perfection, innovation and dynamismcontributed 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 1-4COMPANY SPECIFIC 5-9VISION 10MISSION 10CODE OF CONDUCT 11-12MILESTONE 13-14MANAGEMENT TEAMS 15PRODUCTS 16-22MERGERS 23-28CSR 29-36SWOT 37-40SUGGESTION 41BIBLIOGRAPHY 42
INDUSTRY DETAIL The Indian cement industry has been on a high growth trajectory for more than adecade, led by buoyancy in sectors such as real estate and construction. The industry haswitnessed continuous modernisation and adoption of new technologies in recent years. India is the worlds second largest producer of cement after China with industrycapacity of over 200 million tonnes (MT). With the boost given by the government tovarious infrastructure projects, road networks and housing facilities, growth in the cementconsumption is anticipated in the coming years. The modern Indian cement plants are state-of-the-art plants and amongst the best inthe world. The cement industry comprises of 134 large cement plants with an installedcapacity of 173.08 million tonnes and more than 350 operating mini-cement plants, withan estimated capacity of 11.10 million tonnes per annum, making a total installed capacityof 184.18 million tonnes in the last fiscal, as per the Department of Industrial Policy andPromotions latest data. In order to meet the expanding demand, cement companies are fastdeveloping new plants. The cement industry is poised to add 111 MT of annual capacity bythe end of 2009–10 (FY 2010), riding on the back of approximately 141 outstanding cementprojects. According to a report by the ICRA Industry Monitor, the installed capacity isexpected to increase to 241 MTPA by FY 2010-end. Indias cement industry is likely torecord an annual growth of 10 per cent in the coming years with higher domestic demandresulting in increased capacity utilisation. Housing, Infrastructure and Real estate sectors, with major construction activity inrural 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 drivenby 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 theleading 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 ofequity in the market. Despite a slowdown in most sectors of the economy, the Aditya Birlagroup, the countrys 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 at2.82 MT, compared to last year. The Birla groups production of cement for December alsorose, by 14.85 per cent to 2.27 MT. The other large cement maker, ACC, too saw a jump in sales in December, despite theslowdown in the realty sector. ACC reported a marginal rise in its cumulative production for the January-Decemberperiod to 20.84 MT, from 19.92 MT last year; sales rose to 20.86 MT from 19.88 MT lastyear (2009). Ambuja Cements Ltd, Indias third-largest cement maker, too saw an increase inshipments in December 2008. Shipments rose 11.8 per cent to 16.62 MT from 14.86 MT, ayear earlier.Global Players Rapid urbanisation and the booming infrastructure have lead to an increase inconstruction and development across India, attracting even the global players. The recent
years have witnessed a surge of foreign direct investment in the cement sector. Internationalplayers like Frances Lafarge, Holcim from Switzerland, Italys Italcementi and GermanysHeidelberg Cements together hold more than a quarter of the total capacity. Holcim, one of the worlds 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 littleover three years, taking the total installed capacity to 206.96 MT as on December 31, 2008.This includes India Cements Ltds new grinding unit at Vallur, Tamil Nadu with an installedcapacity of 1.10 MT, and UltraTechs plant at Ginigera, Karnataka with an installed capacityof 1.30 MT.The industry added over 30 MT to its installed capacity in just one year (April2007–March 2008). Almost all players of the industry, small to medium to large, have added capacityranging 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 bysetting up greenfield projects, and expanding and upgrading the existing plant.
Technological change Continuous technological upgrading and assimilation of latest technology has beengoing on in the cement industry. Presently, 93 per cent of the total capacity in the industry isbased on modern and environment-friendly dry process technology and only 7 per cent of thecapacity is based on old wet and semi-dry process technology. There is tremendous scope forwaste heat recovery in cement plants and thereby reduction in emission level. One project forco-generation of power utilising waste heat in an Indian cement plant is being implementedwith Japanese assistance under the Green Aid Plan. The induction of advanced technologyhas helped the industry immensely to conserve energy and fuel and to save materialssubstantially. India is also producing different varieties of cement like Ordinary Portland Cement(OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFC), OilWell Cement, Rapid Hardening Portland Cement, etc. Production of these varieties of cementconform to the BIS Specifications. Between April to November 2008, 25 per cent of allcement 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 becauseof the precision of the mixture and reduced worksite confusion. The Indian RMC business isgrowing by 25 per cent every year. In India only 2–3 per cent cement consumption by cementindustry goes through RMC, as against 60 per cent in developed markets. At present, Indiahas 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 worlds second largest cement maker, has bagged Larsen and Toubros 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 theLeague of Fortune 500, the Aditya Birla Group is anchored by an extraordinary force of100,000 employees, belonging to 25 different nationalities. Over 50 per cent of its revenuesflow from its operations across the world The Aditya Birla Group‘s products and services offer distinctive customer solutionsworldwide. 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 thetop 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 CEMENTHistory ECC was conceived as Engineering Construction Corporation Limited in April 1944 and was incorporated as wholly owned subsidiary of Larsen & Toubro Limited. L&Ts 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 ofIndia. 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 housebuilders. With a manufacturing capacity of 48.8 million MT annually (2009), eleven integratedplants, eleven grinding units and five bulk terminals, UltraTech cement is the 8th largestcement producer in the world. Its composite product portfolio which, along with UltraTech (Grey Cement) includesBirla White (White Cement) and Ready Mix Concrete (UltraTech Concrete). Also, an arrayof new products - UltraTech Seal & Dry – Total Water Proofing Solution, UltraTechSuperStucco – Easy to apply Polymer Modified mortar , UltraTech Nubric – strong & ecofriendly brick , UltraTech FixoBlock – extra fine jointing mortar , UltraTech Readiplast –plaster product makes UltraTech a complete construction solutions company. This ethos isalso reflected in UltraTech Building Solutions – its initiative to bring construction solutionsto consumers under one roof. With growing demand for cement in the wake of housing and infrastructure boom thecompany is set to attain newer heights.Financial facts The company is headquartering at Mumbai in India. The company reportedrevenues of (`) INR 66,643.30 million during the fiscal year endedMarch 2009, an increase of 16.43% over 2008. The operating profit of thecompany was INR 13,678.20 million during the fiscal year 2009, adecrease of 9.73% from 2008. The net profit of the company was INR9,780.60 million during the fiscal year 2009, a decrease of 3.17% from2008.
Plant and Machinery UltraTech Concrete is manufactured at state-of-the-art computerized automaticbatching & mixing plants with contemporary technology. Some of the special features of ourplants 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 calibration 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 WorksOverview Cement is an essential material for todays society because concrete is made fromcement, which is an inevitable element for housing, commercial and infrastructuredevelopment. Measured on a kilogram per capita basis, concrete is 2nd most widelyconsumed material in the world, second only to water. Cement manufacturing process willhave -Local impacts (landscape disturbance, dust emission) and Global impacts (CO2, SOxand NOx emissions).Because of these impacts, sustainable development has recently become a major strategicissue for cement manufacturers around the world. Cement industry is giving very specific andserious attention for managing CO2 emissions. In 2000 a group of 10 major cement companies collaborated as "working groupcement"(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 sustainabledevelopment (WBCSD). WBSCD has entrusted this study to an independent organizationnamely, Batelle Memorial Institute. The ideas emerged from this study indicate that thecement 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 andsociety at large. Vision"To actively contribute to the social and economic development of the communities inwhich we operate. In so doing, build a better, sustainable way of life for the weakersections of society and raise the countrys 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 andadopted by UltraTech Cement Limited (hereinafter referred to as "the Company") incompliance with the provisions of Clause 49 of the Listing Agreements entered into by theCompany 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 levelbelow the Board Members, viz. Manager & CEO, CFO and all Unit Heads, Presidents, JointPresidents and all other executives having similar or equivalent rank in the Company and theCompany Secretary of the Company (hereinafter referred to as "Senior Managers").TheCompany 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 ofethical 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 Companys 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 Companys business associates, which can be perceived as being given to gain favour or dealing with the Company and shall ensure that the Companys 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 anannual basis as at the end of the each financial year of the Company (as per Appendix Iwithin 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 acknowledgereceipt of the Code or any modification(s) thereto, in the acknowledgement form annexed tothis 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 anyMember of the Board or Senior Management shall be reported to the Board of Directors ofthe Company for necessary action. MILESTONES1983 Awarpur Cement Works Plant I1987 Awarpur Cement Works Plant II1993 Jharsuguda grinding unit1994 Hirmi Cement Works1996 Gujarat Cement Works Plant I1998 Andhra Pradesh Cement Works Gujarat Cement Works Plant II1999 Narmada Cement Company Limited acquired Ratnagiri Cement Works2000 Bulk cement terminals at Mangalore, Navi Mumbai and Colombo2001 Grasim acquires 10 per cent stake in L&T. Subsequently increases stake to 15.3 per cent by October 2002. Durgapur grinding unit2002 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 Groups 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 Indias biggest cement firm Ultratech to be the lead sponsors of Rajasthan Royals UltraTech to consider Grasim merger proposal2010 Ultratech Cement Ltd has appointed Mr. 0 P Puranmalka as Additional Director with immediate effect.
MANAGEMENT TEAMSBoard 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 DirectorExecutive President & Chief Financial Officer Mr.K.C.BirlaChief Manufacturing Officer Mr. R.K.ShahChief Marketing Officer Mr. S.N.JajooChief People Officer Mr. C.B.TiwariCompany Secretary Mr. S.K.Chatterjee
PRODUCTS UltraTech is Indias largest exporter of cement clinker. The companys productionfacilities are spread across eleven integrated plants, one white cement plant, twelve grindingunits, and five terminals — four in India and one in Sri Lanka. Most of the plants have ISO9001, ISO 14001 and OHSAS 18001 certification. In addition, two plants have received ISO27001 certification and four have received SA 8000 certification. The process is currentlyunderway for the remaining plants. The company exports over 2.5 million tonnes per annum,which is about 30 per cent of the countrys total exports (2009). The export market comprisesof countries around the Indian Ocean, Africa, Europe and the Middle East. Export is a thrustarea in the companys strategy for growth. Ordinary Portland cement Portland blast furnace slag cement Portland Pozzolana cementOrdinary Portland cement Ordinary Portland cement is the most commonly used cement for a wide range ofapplications. These applications cover dry-lean mixes, general-purpose ready-mixes, andeven 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 andalumino-silicates of calcium. Slag brings with it the advantage of the energy invested in theslag making. Grinding slag for cement replacement takes only 25 per cent of the energyneeded to manufacture Portland cement. Using slag cement to replace a portion of Portlandcement 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, easierfinish ability, higher compressive and flexural strength, lower permeability, improvedresistance to aggressive chemicals and more consistent plastic and hardened consistency.Portland Pozzolana cement Portland pozzolana cement is ordinary Portland cement blended with pozzolanicmaterials (power-station fly ash, burnt clays, ash from burnt plant material or siliciousearths), either together or separately. Portland clinker is ground with gypsum and pozzolanicmaterials which, though they do not have cementing properties in themselves, combinechemically with Portland cement in the presence of water to form extra strong cementingmaterial which resists wet cracking, thermal cracking and has a high degree of cohesion andworkability in concrete and mortar.Concrete Concrete is most vital material in modern construction. It has versatile properties likeeasy mould ability, high compressive strength and long lasting durability. These properties ofconcrete have made it most popular construction material for all types of civil engineeringworks. The latest developments in concrete technology have made it possible to use it inintricate and architecturally complex structures, requiring high degree of performance andaesthetic appearance. In addition to normal concrete, other varieties in use are, high strength and highperformance 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 thetechnology used for production, transportation and placement. The making of concrete is anart as well as a science. Science because all the ingredients are proportioned as per thestandard codes of practice to get the targeted strength & durability, and an art because inaddition to accurate proportioning, quality of concrete depends on the way it is mixed,placed, compacted, finished, cured and protected. Ready mix Concrete (RMC) technologyresults in a perfect blend of the Art and Science. In all the developed as well as most of the developing nations, use of RMC forconstruction has made it possible to achieve speed and quality. The advent of commercialRMC in India is about a decade old, but in recent years it has become the preferred choice ofarchitects, engineers and consumers. UltraTech Concrete is committed to provide customised high quality RMC forensuring 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 othercorrective materials, viz. Lateritic, Bauxite etc. Essential constituents mainly are Lime, Silica,Alumina and Iron Oxide. The process of manufacturing consists of grinding of raw materialsinto fine powder, mixing them intimately and burning in a kiln at about 1400 deg. C. Theresultant 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-artcement plants mainly through cement bulkers, which in turn is pumped directly intoUltraTech Concrete silos, thus protecting it from the external environment and humidity.Coarse Aggregates UltraTech Concrete directly sources the aggregates from selected and approvedsuppliers 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 strengthFine 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 contentWater UltraTech Concrete tests the quality of water as per BIS standards at frequentintervals and in case the water needs any treatment, water purifiers are used.
Mineral Admixtures In UltraTech Concrete plants, mineral admixtures are obtained from proven sourcesconforming 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 duringmixing 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 cementbefore use.Workability of concrete In UltraTech Concrete, workability is properly controlled through scientific methodsby appropriate dosing of admixtures. Workability is measured (and recorded) for every batchto facilitate efficient transportation and pumping.Batching and Mixing UltraTech Concrete is proportioned using computer aided scientific methodsconforming to relevant standards. Mixing is done through high efficiency pan mixers or twinshaft vibro-mixers in fully automated mixing and batching plant leaving no scope for humanerror. 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 PrecautionsGoing forward Industry demand may grow at 9% for the year given the Government initiatives toboost 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 fallin capacity utilization from H2FY10 and squeeze margins. Company‘s steps in the form ofcement / clinker capacity addition, new thermal power plants and capital productivity shouldpartially offset the impact on margins.Company’s Performance The financial year 2008-09 began under a challenging environment. Rising energycost and commodity prices spurred inflation and affected margins. In the second half, theglobal financial crises aggravated the situation resulting in a liquidity crunch, a high cost ofcredit and a sharp fall in capital markets. All of this resulted in an overall slowdown in theeconomy. The Central Government and the Reserve Bank of India adopted aseries of fiscal and administrative initiatives to address the situation. These were in the formof infusing liquidity in the market by reducing CRR and SLR of Banks, stimulus packagesand release of arrears in wages following the recommendation of the 6th Pay CommissionAward. These measures led to a revival of construction activities in the semi urban and ruralareas 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 capacityutilisation 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 croreswas up by 31% compared to ` 1,496 crores in Q1FY‘09. Profit before interest, depreciationand 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 governments 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 SponsorshipOpinion 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 grouphas 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, withthe 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 thatthere are no immediate gains. But, they expect shareholders of UltraTech Cement to gainmarginally from a possible re-rating in the near-term. Grasim Industries demerged its cement business into Samruddhi Cement Ltd, awholly-owned subsidiary of Grasim, as part of its restructuring plan, where Grasim‘sshareholders would receive one equity share of Samruddhi for every one share they held inGrasim. Grasim has taken the first step towards consolidating its cement business into oneentity, creating a new holding company.Grasim plans to hive-off its cement assets, excluding its 54.78 per cent stake in UltraTechCement, into Samruddhi Cement effective October 1, 2009. The shareholders of Grasim willget a share each of ` 5 each in the new company, aggregating to 35 per cent (or 9.17 croreshares), while Grasim will continue to control Samruddhi with a 65 per cent stake (17 croreshares).
Later, Samruddhi will seek a separate listing, though it will be for a short-period, asconsequent to approval of concerned authorities as well as shareholders of Grasim andUltraTech, the cement businesses of Samruddhi and UltraTech are planned to be merged toform India‘s largest cement company with an installed capacity of nearly 50 million tonnesper annum (mtpa). Post merger, Grasim is estimated to have a controlling stake of about 60per cent in the larger cement entity. The move is designed to ensure Grasim‘s majority stakein, 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, thedemerger opens up new choices for financing this growth.‖ Eventually, it will also help createa platform for potential consolidation. All of which, should help maximise shareholder valuein the long-run. Grasim, meanwhile, would continue to focus on its VSF business, which so farprovided a large part of the cash-flows to grow the cement business. Grasim is setting up anew ` 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 standalonenumbers in FY09. Post demerger, Grasim will operate the VSF and other small business andhave cash and investments worth ` 1,500 crore. Analysts say, its ability to effectively utilisethis cash and operating profits of over ` 700 crore annually, will have a bearing on the valueaccretion 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 twocompanies (adjusted for the different face values), in Grasim‘s case, a few believe that therecould be some upside in the form of a slightly better valuation given to Samruddhi due to itslarger size and ownership of a profitable white cement business. While the move is in theright direction, the concerns regarding the potential over-supply situation and soft cementprices loom large for the cement industry. In this context, many analysts believe that Grasimis 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 aconsolidation proposal from Samruddhi Cement Ltd a wholly owned subsidiary of GrasimIndustries 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 tonecessary approvals. The board of directors of UltraTech Cement approved in-principle the mergerproposal of group company Samruddhi Cement with itself. The company has appointed Bansi Mehta & Company for the valuation exercise andUBS as investment banker. The company expects the valuation report by the first week of November, and theboard will meet again as soon as it receives the report. The entire process will be completedwithin seven to nine months. Extra care will be taken to protect the interest of Grasiminvestors. Clearing misgivings that Grasim would be reduced to a holding company of thecement business, Mr Birla said the re-rating of UltraTech post-merger would more than makeup for the loss, if any, incurred by Grasim shareholders. While UltraTech commands an enterprise value of $110 a tonne, Ambuja Cement andACC are rated at $147 a tonne, while it is $160 a tonne for Shree Cement. UltraTech will bere-rated substantially post-merger. Grasim will continue to invest in cement through UltraTech though the mode ofinvestment (debt or equity) will be decided at the appropriate time. The group does notpropose to add any new business to Grasim as it wants to retain its identity of a textilecompany.
Facts About Company The Aditya Birla Group is the ninth-largest cement producer in the world Incorporated on 24 August 2000 as L&T Cement Limited Cement business of Larsen & Toubro Limited demerged and vested in company in 2004 Grasim acquired management control in July 2004 Together with Grasim, one of the largest cement producers in India Name changed to UltraTech Cement Limited with effect from 14 October 2004 Narmada Cement Company Limited amalgamated with UltraTech in May 2006 Cement business of Grasim demerged and vested in Samruddhi Cement Limited in May 2010 Samruddhi Cement Limited amalgamated with UltraTech Cement Limited in July 2010
UltraTech Cement To Purchase 80% of Star Cement (Dubai) The UltraTech Cement Ltd, a subsidiary of Aditya Birla group, will purchase aroundan 80% stake in Dubai‘s ETA Star group-owned Star Cement Co. Llc. for an enterprise valueof US$ 380 million (` 1754 crore).It is understood that the purchase will be made through UltraTech Cement Middle EastInvestments Ltd, a wholly owned subsidiary of UltraTech Cement. The enterprise value is themarket value of the entire business, including debt. Adesh Gupta, a whole-time director and chief financial officer at Grasim IndustriesLtd, which controls 60% of UltraTech Cement, said that ―It will be more than 51% (stake), itwill 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 ETAhad built cement plants. The acquisition is set for completion later this week. The deal willgive the US$ 30 billion Birla group direct access to the West Asian market, until now servedthrough exports, Gupta said. ―We used to export more than 3 lakh t of clinker to the UAEmarket. 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 becausethey no longer have to export clinker to that market,‖ said Rupesh Sankhe, an analyst atMumbai-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 milliont, but demand slackened after a real estate slowdown hit Dubai last year. Star Cement has anannual capacity of 3.2 million t. The Aditya Birla group has already demerged Grasim‘s cement business into a newlylisted subsidiary Samruddhi Ltd, which in turn will be merged with UltraTech. Grasimcurrently has ` 2500 cash on its books. Adesh Gupta declined to say how the company would use the cash but said it willinvest ` 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 wasalready textured into company‘s groups value systems. As early as the 1940s, their foundingfather Shri G.D Birla espoused the trusteeship concept of management. Simply stated, thisentails that the wealth that one generates and holds is to be held as in a trust for their multiplestakeholders. 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 bookphilanthropy. In his view, it was unwise to keep on giving endlessly. Instead, he felt thatchannelizing resources to ensure that people have the wherewithal to make both ends meetwould be more productive. He said, "Give a hungry man fish for a day, he will eat it and thenext day, he would be hungry again. Instead if you taught him how to fish, he would be ableto feed himself and his family for a lifetime."Company strategy Taking these practices forward, ultratech chairman Mr. Kumar Mangalam Birlainstitutionalised the concept of triple bottom line accountability represented by economicsuccess, environmental responsibility and social commitment. In a holistic way thus, theinterests of all the stakeholders have been textured into company‘s groups fabric.
The footprint of their social work today spans 2,500 villages in India, reaching out toseven million people annually. Their community work is a way of telling the people amongwhom they operate that they care. Projects are planned after a participatory need assessment of the communities aroundthe plants. Each project has a one-year and a three-year rolling plan, with milestones andmeasurable targets. The objective is to phase out their presence over a period of time andhand over the reins of further development to the people. This also enables them to widentheir reach. Along with internal performance assessment mechanisms, their projects areaudited by reputed external agencies, who measure it on qualitative and quantitativeparameters, helping them gauge the effectiveness and providing excellent inputs.Their partners in development are government bodies, district authorities, village panchayatsand the end beneficiaries — the villagers. The Government has, in their 5-year plans, specialfunds earmarked for human development and they recourse to many of these. At the sametime, they network and collaborate with like-minded bilateral and unilateral agencies to shareideas, draw from each others experiences, and ensure that efforts are not duplicated. Atanother level, this provides a platform for advocacy. Some of the agencies they havecollaborated 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-mindedgoal here is to help build model villages that can stand on their own feet. Their focus areasare 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 andagriculture and watershed development Self-help groups SGSY - dairy, readymade garments, jute project,basket making, aggarbati making, bee keeping, durriemaking. 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 CSR2010 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 Universitys research centre, the Columbia Global Centers Earth Institute in Mumbai, to become its principal partner. The Earth Institutes goal is to help achieve sustainable development primarily by expanding peoples understanding of the earth as one integrated system. Hindalco wins Amity International Business School‘s, ‗Amity Corporate Excellence Award for Corporate Social Responsibility‘2009 Grasims pulp and fibre division won the highly prestigious Asian CSR Award. The Asian CSR Awards, Asias 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. Birlas pathbreaking work among the poor, more so in Indias 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 Readers Digest Pegasus Star Award was conferred on Hindalco. Mrs. Rajashree Birla who spearheads all the Groups 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 officials2007 The Aditya Birla Group was honoured with the India Today Groups Readers Digest Gold award in recognition of the work that truly exemplifies the highest values of society as well as those of Readers 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 Development2003 The Group is ranked 16th in Indias first ever survey of Great places to work in, published in Business World magazine. The Groups 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 specificallythe objective of the business venture and identifying the internal and external factors that arefavourable 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 ofplanning 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 thatare important to achieving the objective. These come from within the companys unique valuechain. 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 CEMENTStrength UltraTech Cement Limited (UltraTech) is India-based one of the largest cementmanufacturing company. The company along with its subsidiaries is engaged in the businessof manufacturing, marketing, distribution and sales of the cement and cement relatedproducts. UltraTechâ€™s other cement related products are ready mix concrete and cementclinker. The product portfolio of the company comprises Portland cement, Portland blastfurnace slag cement and Portland Pozzolana cement. The company also exports cement andclinker to countries around the Indian Ocean, Africa, Europe, and the Middle East. Thecompany has an annual cement production capacity of 18.2 million tones. It is a subsidiary ofGrasim Industries Ltd. The company operates two subsidiary companies namely, DakshinCement Limited and UltraTech Ceylinco (P) Limited. The company is headquarter atMumbai in India.The company reported revenues of (Rupee) INR 66,643.30 million duringthe fiscal year ended March 2009, an increase of 16.43% over 2008. The operating profit ofthe 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 year2009, 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 tomorrowholds. And you have a greater responsibility to bear when you are India‘s largest cementcompany. In the present day context, UltraTech is playing an important role in the infrastructuraldevelopment of the country. No wonder, UltraTech‘s every creation is a window totomorrow. And an effective communication was needed to reflect the same.It was quite adaunting task for Interface Communications, the advertising agency for UltraTech, to get theright mix of emotions and technological superiority that appeal to everyone right across IHBsto architects and large commercial establishments. The weaknesses of UltraTech are as follows- Delay in supply. Inconsistency of Supply. Insufficient manpowerOpportunity When you view India through a prism, its multi-faceted refractions are awesome,unique and partly distressing. A multiethnic, multi-religious, multilingual, multi-culturaldiverse democracy, rich in its distinctive heritage — India is, indeed, captivating. Ourdemocracy resonates throughout the world. Moreover, the way in which India hastransformed 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 businessschools the world over. While the youth leader must appreciate these facets, he or she musthave a thorough understanding of the different strands that go into the weave of India. Thepartition in the aftermath of our freedom struggle has left a scar, as has the divide in the nameof God. India is a country of extreme paradoxes. We are reckoned as a nation of tremendousopportunities and, yet, it is a reality that India is a place of perpetual struggle. We have largetracts 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&Tfor 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 ina very short time the company had to establish a new brand name in the minds of the peopleand use the L&T mind space. The task was Herculean. Explaining the strategy behind thenew brand name, Mr. Puranmalka said: "We wanted to capture the gene code of L&T in thenew brand name. So we commissioned research on customer perception about the L&TCement brand. Of course, we were very sure in our minds that L&T Cement epitomisedengineering prowess, technology quality and modernity." In step with its global agenda, the cement business of the Aditya Birla Group, isorchestrating a contemporary brand makeover. With UltraTech Cement, the Aditya BirlaGroup has established itself as not only the most respected domestic player but also amongthe global leaders in cement. UltraTech has strong competitors like ACC, LAFARGE, AMBUJA Etc., althoughthe Brand Equity of ULTRATECH CEMENT is AT PAR with ACC and LAFAGE, tomaintain the same continuous follow-up in all respect is necessary. The Ultratech cement has to adopt necessary strategies to compete with strongcompetitiors 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 aresubmitte:- 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.