INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading INTRODUCTION TO CEMENT INDUSTRY
The cement industry is one of the main beneficiaries of the infrastructure boom. With robust demand and adequate supply, the industry has bright future. The Indian Cement Industry with total capacity of 165 million tones is the second largest after China.
Cement consumption in India has increased by over 22% in 2009-10 from 2007- 08.Among the
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading states, Maharashtra has the highest share in consumption at 12.18%,followed by Uttar Pradesh, In production terms, Andhra Pradesh is leading with 14.72% of total production followed by Rajasthan.
Cement industry has contributed around 8% to the economic development of India. Cement industry has a long way to go as Indian economy is poised to grow because of being on verge of development.
The company continues to emphasize on reduction of costs through enhanced productivity,
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading reduction in energy costs and logistics expenses. As per the Working Group report on Cement
Industry for the formulation of the 11th Plan, the cement demand is likely to grow at 11.5 per cent per annum during the 11th Plan and cement production and capacity by the end of the 11th
Plan are estimated to be 269 million tones and 298 million tones, respectively, with capacity utilization of 90 per cent.
Foreign cement companies are also picking up stakes in large Indian cement companies. Swiss
cement major Holcim has picked up 14.8 per cent of the promoters' stake in Gujarat Ambuja
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Cements (GACL). Holcim's acquisition has led to the emergence of two major groups in the
Indian cement industry, the Holcim-ACC-Gujarat Ambuja Cements combine and the Aditya Birla group through Grasim Industries and Ultratech Cement.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading INTRODUCTION TO AMBUJA CEMENT
Ambuja Cements was set up in 1986. In the last decade the company has grown tenfold. The
total cement capacity of the company is 18.5 million tones. Its plants are some of the most efficient in the world. With environment protection measures that are on par with the finest in the
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading developed world. Ambuja Cements Limited, formerly known as Gujarat Ambuja Limited is a
major Cement producing company in India. The Group's principal activity is to manufacture and market cement and clinker for both domestic and export markets.
The Company also operates a hotel through its subsidiary GGL Hotel and Resort Company. It has shown innovation in utilizing measures like sea transport, captive power plants, and imported coal and availing of govt. sops and subsidies to constantly check the costs.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading The company's most distinctive attribute, however, is its approach to the business. Ambuja follows a unique homegrown philosophy of giving people the authority to set their own targets,
and the freedom to achieve their goals. This simple vision has created an environment where there are no limits to excellence, no limits to efficiency. And has proved to be a powerful engine of growth for the company.
As a result, Ambuja is the most profitable cement company in India, and one of the lowest cost producers of cement in the world.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Its focus:•
Best quality cement
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Good packaging
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Logistic management - strong distribution network
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Customer service
Capacity built up from 0.7 mn tones in 1986 to 18.0 mn tones as of today at CAGR of 18% Organic growth and growth through acquisitions.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading HISTORY OF AMBUJA CEMENT
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Ambuja Cements Limited was earlier known as Gujarat Ambuja Cements Limited (GACL). The
company was set up in 1986. In this short span Ambuja Cements has achieved massive growth and presently, the total cement capacity of the company is 16 million tonnes. The company has
three subsidiaries, viz, Ambuja Cement Rajasthan Limited (ACRL), Ambuja Cement Eastern Limited (ACEL) and Ambuja Cement India Limited (ACIL). Ambuja also has a strategic investment in ACC through its subsidiary (ACIL).
Ambuja Cements is the most profitable cement company in India, and the lowest cost producer
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading of cement in the world. One of the major reasons that Ambuja Cements is the lowest cost
producer of cement in the world is its emphasis on efficiency. Power consists over 40% of the production cost of cement. The company improved efficiency of its kilns to get more output for
less power. Thereafter Ambuja Cements set up a captive power plant at a substantially lower cost than the national grid. The company sourced a cheaper and higher quality coal from South Africa, and better furnace oil from the Middle East. As a result, today, the company is in a position to sell its excess power to the local state government.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Ambuja cement is the first company to introduce the concept of bulk cement movement by sea in India. This resulted in speedier transportation and brought many coastal markets within easy
reach. Ambuja Cements has a port terminal at Muldwarka, Gujarat. It is an all weather port that handles ships with 40,000 DWT. The port has a fleet of seven ships with a capacity of 20500
DWT to ferry bulk cement to the packaging units. The company has bulk cement terminals at Surat, Panvel, and Galle. The Surat terminal has a storage capacity of 15,000 tonnes and Panvel
terminal has a storage capacity of 17,500 tonnes. Both the terminals have bulk cement unloading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading facility.
BACKGROUND
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The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 1982
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The Company was incorporated on 17th June, and the Certificate of Commencement of Business was obtained on 11th February, 1983.
It was
promoted by Modi Industrial House and Madhya Pradesh Audyogik Vikas Nigam Ltd (MPAVN). The Company manufactures cement.
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The Company had under taken to set up a project to manufacture Portland
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading cement in Madhya Pradesh. The main plant and machinery was obtained from Polybius Ltd U K and their Indian associates Buckau Wolf India Ltd.
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The Company entered into a foreign collaboration agreement with Blue Circle Industries PC., U.K. (BCI) for technical consultancy services.
1986
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7 shares subscribed for by the signatories to the Memorandum of Association.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 334, 99, 993 shares then issued at par out of which
208, 99,993 shares to promoters, directors, etc. (including 10, 00,000 shares
to NRIs on repatriation basis) and 15, 00,000 shares to MPAVN were reserved and allotted.
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Out of the remaining 111, 00,000 shares, the following shares were reserved for preferential allotment:
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25, 00,000 shares to NRIs on repatriation basis (all were taken up);
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
16, 75,000 shares to employees of the company (including Indian working
directors and employees of Modi Group Companies) and
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2, 22,000 shares to business associates of the company.
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Out of (ii) and (iii) above, only 1, 93,450 shares were taken up.
The balance 67, 03,000 shares, along with 17, 03,550 shares not taken up by
employees and business associates, were offered for public subscription
during January-February. 83, 75,000 additional shares were allotted to retain
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading oversubscription (4, 86,950 shares to NRIs and 78, 88,050 shares to the public).
1987
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25, 00,000 shares issued at par as rights to Indian resident shareholders in
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading prop. 1:15. Only 22, 74,291 shares taken up.
1988
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The balance 2, 25,709 shares out of the rights issue of 1987-88 allotted privately.
1989
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The Company came under the provisions of the Sick Industrial Companies
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading (Sp. Provisions) Act, 1985 and a reference was made to the Board for Industrial and Financial Reconstruction (BIFR).
1990
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1991
Forfeiture on 56,600 shares annulled.
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The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
The Company's plan to expand the capacity from 11.5 lakh tones to 18 lakh tones.
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Subject to necessary approvals being obtained, the company Proposed to issue
458, 00,920 rights equity shares of Rs. 10 each at a premium not exceeding of Rs. 2 per share in the proportion 1:1.
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In addition to the above rights issue, 5% of the rights issue at a premium not exceeding Rs. 2 per share was to be offered to the employees, etc., of the
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Company and promoter companies on an equitable basis.
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Issued 31, 10,000 shares at par as rights in prop. 7:100 (all were taken up) and 1, 55,500 shares at par to employees (only 1,900 shares taken up) in January.
1993
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1,000 right shares kept in abeyance were issued.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 1994
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Production declined to 10, 31,219 tones due to excessive rains and floods which inundated the factory and limes tome mines.
1997
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The Scheme for rehabilitation was sanctioned by BIFR. Gujarat Ambuja Cements Ltd. was inducted as Co-promoter for revival of the company, the
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Board has reconstituted and the new management assumed charge in December.
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The name of the Company has been change from Modi Cements Ltd. to Ambuja Cement Eastern Ltd.
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45,801,930 No. of equity shares of Rs.10 each has been reduced by75% to
11,450,483 No. of equity shares of Rs. 10 each pursuant to the rehabilitation scheme sanctioned by BIFR on 5th November; 116,000,000
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
No. of equity shares of Rs. 10 each fully paid up and 50, 00,000 No. Of equity
shares of Rs. 10 each Rs. 750 called and paid up allotted to Gujarat Ambuja Cements Ltd. pursuant to rehabilitation scheme sanctioned by BIFR on 5th November.
1998
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Modi Cements Ltd. is being merged with Gujarat Ambuja Cements (GACL),
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading which holds a 93 per cent stake in the ailing company.
1999
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AMBUJA Cement Eastern Ltd. (ACEL), in its transition from the erstwhile
Modi Cement Ltd during its first full financial year, had to contend with more
than establishing the `Ambuja Cement' brand in a market that was familiar with the Ambuja name but not the product.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 2000
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The Company holds 166057827 equity shares of Rs. 10/- each in the company representing 93.58% of its share capital.
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Ambuja Cement Eastern Ltd. will make a preferential issue of equity shares/any other security convertible into equity shares not exceeding
1,70,00,000 No. of equity shares of Rs 10 each to holding company, Ambuja
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Cement India Ltd.
2002
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Gujarat Ambuja loses its image as the lowest cost producer in the Market due to acquisition. 2003
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Members approve for the delisting of the equity shares of the company from Delhi and MP stock Exchanges.
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Ambuja Cement awards equipment order for BHEL
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 2004
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Ambuja Cement Eastern shares delisted from Bhubaneswar Stock Exchange & Delhi Stock Exchange
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Ambuja Cements (Eastern) Ltd has succeeded in coming out of the Board for Industrial and Financial Reconstruction (BIFR) fold.
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Ambuja Cement Eastern Ltd has informed that at the review meeting of the
BIFR held on March 3, 2004, the BIFR have passed an order, discharging the
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading company from purview of the Sick Industrial Companies (Special Provisions) Act, 1985.
2009
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Capacity to increase from 16 mn. Tones’ to 22 mn. Tones’.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading COMPANY PROFILE
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading The G.A.C.L is a Public Limited Company. In Which ………
Share capital is ………………………………..304.48 Crores Rs.
Investment in plant & machinery is…………..1288.94 crores Rs. Net current asset is ……………………………418.24 crores Rs. CORPORATE OFFICE: SOLICITORS & ADVOCATES:
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 122, Maker Chambers III, Kanga & Co Nariman Point,
Mumbai – 400 021. WORKS:
Ambuja Nagar P.O.
Taluka Kodinar, Dist Junagadh,
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading REGISTERED OFFICE: Gujarat – 362 715. Ambujanagar P.O.
Taluka Kodinar, Dist. Junagadh, BHAVNAGAR OFFICE:
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Gujarat – 362 715. 317/318 3RD floor Madhav darshan, waghavadi road Bhavnagar 364001.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading PRODUCT DETAILS
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Ambuja Cement is the flagship brand of Ambuja. A unique outcome of international expertise, this super performing cement has been developed taking into consideration the weather conditions in India and practices of home building.
Ambuja Cement is available in Portland Slag Cement (PSC) and Portland Pozzalona Cement (PPC) variants.
PRODUCT AND MANUFACTURING PROCESS:
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Cement is manufactured by using the mixture of limestone, clay, sand, literate, bauxite and iron
and the mixture is burning at a high temperature of 1,400 to 1,500 degree Celsius and the resultant clinker (a final product) is made then it mixed and grinding with gypsum to form cement for final use.
The process of manufacture is divided broadly into 3 stages… Stages of process:-
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 1. Preparation of the raw materials
2. Burning process of the raw materials in kiln and 3. Grinding the clinker to the finished products Type of Processes
There are mainly 3 types of processes to get the final product. These Processes are as follows. A. Wet process.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading B. Semi dry process. C. Dry process.
A. Wet Process:-
This is the old process of manufacturing of cement. In this process the raw material grinding
with sufficient water, so that the mixture contains 30% to 40% of water. But it is not useable because it use higher coal consumption 30% to 35% as compared to dry process.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading B. Semi dry Process
In this process the raw material are processed in dry state and the grinding raw meal is neutralized by addition of 10% to 20 % water, and it is final by heat consumption process. C. Dry process
This is the modern method of production. In the dry process limestone and clay are fed into a
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading grinding mill with passing hot air. The materials are heats dried thoroughly and then reduced to
fine powder know as raw meal. The raw meal is mixed with a little water and formed into nodules in nodulising fan. Their nodules are then fed into a moving grate through which the hot gases from the rotary klin are passed. They are dried in pertically claimed. The calcined nodules then fall into a short rotary klin of conventional design where they are burnt to form clinker.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading KEYS STEPS TOWARDS STRATEGIES PLANNING
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 1. VISION:- To be India’s most admired company
2. MISSION:- Delighted customers, inspired employees, Empowered partners, energized
society.
3. OBJECTIVES:-The management of Gujarat Ambuja decided some objectives to
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading become topper in the market. And the objectives are:
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Better quality then other company.
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Fair returns to share holders.
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A higher productivity to cover maximum market.
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Maximum customer satisfaction.
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Clean & healthy Environment for employee’s growth.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
Try to lower pollution to fulfillment of social responsibilities.
4. GOALS:-Become number one cement company in India
5. STRATEGIES-
COMPANY’S STRATEGY: •
Captive Infrastructure: Ports & Power Plants
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
Presence in the growing markets of North & West
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Retail Focus – Premium pricing
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Largest Exporter of cement
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35% Cement transport by sea - Cheapest Mode
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One of the Lowest Cost Cement Producer
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading MARKETING STRATEGY: •
Emphasis was on Quality
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High Advertisement for BRANDING-3 times than ACC at one time.
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Improvement in Packaging by information provided by suppliers
Extensive & primarily exclusive distribution network-Over 6,000 Dealers and 20,000 retailers.
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Promotion through seminar, workshops for masons, architects,
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Contractors etc by providing info on use of AMBUJA CEMENT advertising and Publicity campaign.
EXPANSION STRATEGY:
Starting with a plant with a capacity of 0.7 MT in Gujarat, GACL is now having plants at different place with total 16.5 MT. It has adopted organic growth. To participate in the growth of
the cement industry, the company has planned capital expenditure programmers aggregating to about Rs.3500 crore. This would help the company maintain its market share going forward.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 6) VALUES-
Code of Business Conduct and Ethics 1. Applicability
The Code of Conduct will apply to all the members of the Board of
Directors and all the employees of the Company in M grade. clause 25 of this Code requiring annual confirmation is applicable to Directors and employees in grades MOA and above.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 2. Honest and Ethical Conduct
The Company expects all the Directors and the Employees to act in accordance with highest professional standards, integrity and high morals and ethics. 3. Conflict of Interest
The Company expects that the Directors or Employees of the Company shall not engage in any
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading business relationship or activity which might conflict with the interest of the Company. The following are examples of situations, which may constitute a conflict of interest: •
When a Director or an Employee engages in a
Business relationship or activity which is or is perceived to be in conflict with the interest of the Company with anyone who is party to a transaction with the Company.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
When a Director and Employee or a member of his or her immediate family receives personal benefits by making or influencing decisions relating to any transaction.
In case it is likely that a conflict of interest might exist, the concerned
Director or Employee must at the earliest opportunity make full disclosure of all facts and
circumstances that reasonably could be expected to give rise to any violations of this Code of Conduct and the Board shall ensure that Company’s interests are protected. An Employee other
than a Director shall make such disclosure to the Head of the Department and/or to the Unit
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Head. The Head of the Department and/or the Unit Head shall look into the merits of the transaction and ensure that the Company’s interests are protected. 4. Accounting & Financial Reporting-
The Management shall ensure that all business transactions shall be recorded in true, fair and timely fashion in accordance with the accounting and financial reporting standards, as applicable to the Company. They will ensure the reliability and accuracy of its accounts, records and
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading reports.
5. Confidentiality •
The Directors and Employees shall strive to protect confidential information acquired,
generated, gathered or which otherwise comes into their possession during the course of business. All such information should be maintained in strict confidence, except when disclosure is expressly authorized by the Company or required by the law.
•
Confidential information includes all non-public information, intellectual property rights
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading such as trade secrets, business research, new products, new projects and plans, business
strategies, customer, employee and suppliers’ lists and any unpublished financial or price sensitive information.
•
The obligation to protect the Company’s proprietary and confidential information continues even after Directors and Employees leave the Company. The Directors and
Employees must return all proprietary information in her/his possession upon leaving the Company.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 6. Compliance with Laws, Rules and Regulations
The Directors and Employees shall keep themselves updated in relation to laws/statutory
compliances applicable to their scope of work. The Directors and employees of the Company shall comply with all laws, rules and regulations and shall not commit any illegal or unethical act.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 7. Fair Competition
The Company is committed to respect the principles and rules of fair competition prohibiting anticompetitive behavior and abuse of a dominant market position. 8. Bribery and Corruption
The Directors and Employees shall not be involved in bribery and corruption while conducting
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading the Company’s business. They are prohibited from offering or providing any undue pecuniary or other advantage for the purpose of obtaining, retaining, directing or securing any improper business advantage or for personal gain.
9. Customers, Suppliers and Stakeholders
The Company is committed to create value for each of its stakeholders. The Directors and Employees shall treat the Company’s customers, suppliers and stakeholders with respect and
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading dignity. There should not be any coercive measures used while dealing with any of the stakeholders.
10. Corporate Opportunities
The Directors and Employees are prohibited from taking for themselves business opportunities
that arise through the use of corporate property, information or position. They shall not use
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading corporate property, information or position for personal gain, or to compete with the Company. 11. Gifts, Hospitality and Donations
The Company will not utilize bribery and corruption in conducting business. The Directors and
Employees are prohibited from receiving, soliciting or offering any illegal or undue pecuniary or other advantage,
12. Corporate Social Responsibility, Health and Safety
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading The Company recognizes its social responsibility and aim to improve the quality of life of its workforce, their families and the communities around its operations. The Company pursues a
clear policy dealing with employment practices, occupational health and safety, community involvement as well as customer and supplier relations. 13. Sustainable Environmental Performance
The Company strives to preserve the environment for future generations by striking a balance
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading between economic growth and continuously improving environmental performance and social responsibility. The Directors and employees must adhere to the policy.
7) PROGRAMS-this all strategies is implemented by company in function areas: •
Captive Infrastructure: Ports & Power Plants
•
Presence in the growing markets of North & West
•
Retail Focus – Premium pricing
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
Largest Exporter of cement
•
35% Cement transport by sea - Cheapest Mode
•
One of the Lowest Cost Cement Producer
MARKETING STRATEGY: •
Emphasis was on Quality
•
High Advertisement for BRANDING-3 times than ACC at one time
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
Improvement in Packaging by information provided by suppliers
•
Extensive & primarily exclusive distribution network-Over 6,000
Dealers and 20,000 retailers. •
Promotion through seminar, workshops for masons, architects,
Contractors etc by providing info on use of AMBUJA CEMENT •
Advertising and Publicity campaign
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading CONCLUSION-Thus to sum up for success of ambuja cement industry all this 7keys which is part of strategies planning is very important.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading LEVELS OF STRATEGIC MANAGEMENT
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading (a) Corporate level:-
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Name
Position
Mrs. Pearl Tiwari
CEO(Chief executive Officer)
Shri Amrit Lal Kapur
MD(Managing director)
(b) Business strategy
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
Suresh Neotia
Shri Suresh Neotia, the Chairman of Ambuja Cements Ltd., is from a well-known Kolkata based family. The Director of a number of eminent
companies, Shri Neotia also has associations with important public bodies. He is a passionate and
well-known collector of Indian art, and has set up a cultural institute at Varanasi for dissemination of Indian heritage.
Shri
Narotam Shri Sekhsaria is the Vice Chairman of Ambuja Cement Ltd. and the
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
Satyanarayan
Chairman of ACC. He promoted Ambuja Cements Ltd. (as Gujarat
Sekhsaria
Ambuja Cements) at the age of 33, and as Managing Director he
augmented the organisation to become the fastest growing cement company in India.
Shri Amrit Lal Kapur
Ambuja Cements Ltd. He has held several more senior positions such as Whole time Director of the Ambuja Cement Company.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
Mrs. Pearl Tiwari
Mrs. Tiwari currently heads the Corporate Social Responsibility department as Vice President at Ambuja Cements Ltd. and Chief Executive Officer (CEO) of Ambuja Cements Foundation
David Atkinson
BOD (Board of director)
M L Bhakta
BOD(board of director)
Markus Akermann
BOD (Board of director)
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
John N. Johnson
Vice President & Chief Information Officer
Thomas M. Kilroy
Chief Sales Officer
(c) Functional level: -
50,500 employees are working in AMBUJA CEMENT LTD.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading KEYS TO BUSINESS STRATEGIES SWOT ANALYSIS
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading STRENGTH
a. Growth at approx CAGR of 9% in last 5 years.
b. Growing Domestic cement consumption at approx CAGR of 8% in last 3Years.
c. Highly Capital Incentive so difficult for small entrant d. Not much restriction by govt.
e. Market consolidation taking place.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading WEAKNESS
a. High Oil Prices, Cost of Power increase production cost.
Supply exceeds Production lead to competition in price.
b. Low Quality as compared to international standard but improving.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading OPPORTUNITY
a. High Mortgage Penetration - Low Interest Rates. b. Easy loan availability for housing finance. c. Increased investments in Infrastructure.
d. Increased govt. outlay on BHARAT NIRMAN, GOLDEN QUADRILATERAL, and
BRTS etc.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading THREAT
a. Further Hike in Oil Prices.
b. Use of plastic engineering in construction.
c. Sub prime market loss may affect.
Conclusion-thus to conclude, use to hell identify possible strength i.e. follows 1) build on strengths
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 2) results weakness
3) exploit opportunities 4) avoid strength
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading PEST ANAYSIS
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 1) POLITICAL AND LEGAL FACTOR: •
Cement plant is deemed to be manufacturing activity for the purpose of incentives for the industry in line with the approved policy of Government of India.
•
All cement plants are entitled to "Industry" status. Such units are eligible for all Concessions and incentives applicable to Industries.
•
The State Government encourages flow of investments including FDI and provides full
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading support wherever required. The State Government can offer customized package of
incentives for prestigious investment proposals i.e. projects where total investments are more than Rs. 10 Crore or a Fortune 500 company is implementing the project.
•
All cement Units with a connected load exceeding 100 KW shall be charged a Concessional rate of Electricity Duty.
•
State Financial Institutions and the Banks, in line with the approved policy of Government of India treats cement plants as priority sector.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 2) ECONOMICAL FACTOR: •
AMBUJA CEMENT INDUSTRY uses low cost highly skilled human resources in which India enjoys internationally competitive advantage.
•
It should be emphasized that the internal strengths of Indian cement industry principally comes from domestic entrepreneurship and domestic capabilities.
•
The impact of WTO and need for free trade areas can be observed by the fact that Indian
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading firms have established operations in countries like Mauritius and Brazil while avoiding Eastern Europe.
•
Global expansion of Indian cement firms is in part funded by international capital. Indian companies raise a part of their capital requirement abroad via bank debts. This exposes companies to vagaries of interest rate fluctuations and inflation rate changes.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 3) SOCIO CULTURAL FACTOR: •
Expansion of cement development centers abroad by Indian cement firms is very limited
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading and is mostly driven by labor costs.
•
Indian cement firms are used to intense competition in global markets. Most companies compete only on price and have gained reputation as price warriors.
•
Indian managers do not consider the need to customize software solutions for a foreign country to be a major impediment for global expansion.
4) TECHNOLOGICAL ASPECTS:
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
Export of cement and related services is heavily dependent on transport infrastructure.
•
Modern advances in technology and transport media have a revolutionary change in the scenario. Latest chemical analysis and their properties forced the industry to keep them updated.
•
The universal nature of Internet and satellite communication capability provided by Indian government has mitigated the importance of telecommunication infrastructure.
Also to organize global fests like Olympics there is demand of a very good infrastructure, thus
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading technology matters.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading PROCESS OF STRATEGIC PLANNING-
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 1) PHASE1:- STRATEGIC FORMULATION-It is also called as strategic planning the strategic formulation can be done as the top management level or at the corporate level strategic
in the level of strategic in the level of strategic management. Strategy formulation involves following stages.
Step1:-FRAMING MISSION AND OBJECTIVE
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading The first stage in formulation of strategic is to frame mission and objective followings are the mission and objective of ambuja cement. •
MISSION- Delighted customers, inspired employees, Empowered partners, energized society.
•
OBJECTIVES-The management of Gujarat Ambuja decided some objectives to become topper in the market. And the objectives are:
i) Better quality then other company.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading ii) Fair returns to share holders.
Iii) A higher productivity to cover maximum market. IV) Maximum customer satisfaction.
V) Clean & healthy Environment for employee’s growth.
vi) Try to lower pollution to fulfillment of social responsibilities. Step:-2-ANAYSIS OF INTERNAL ENVIRONMENT
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading After setting objective or goal the management needs to make analysis of internal environment .The internal environment of Ambuja cement are as follows.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Strength •
Growth at approx CAGR of 9% in last 5 years
•
Growing Domestic cement consumption at approx CAGR of 8% in
•
Highly Capital Incentive so difficult for small entrant
•
Not much restriction by govt.
last 3 Years
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
Market consolidation taking place
Weakness •
High Oil Prices, Cost of Power increase production cost
•
Supply exceeds Production lead to competition in price
•
Low Quality as compared to international standard but improving
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Step3:-ANALYSIS OF EXTERNAL ENVIRONMENT-
The management must conduct an analysis of external environment. The external environments of ambuja cement are as follows. Opportunity •
High Mortgage Penetration - Low Interest Rates
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
Easy loan availability for housing finance
•
Increased investments in Infrastructure
•
Increased govt. outlay on BHARAT NIRMAN, GOLDEN QUADRILATERAL BRTS etc.
Threat •
Further Hike in Oil Prices
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
Use of plastic engineering in construction
•
Subprime market loss may affect.
Step4:-GAP ANALYSIS-
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading The management of ambuja cement industry had conducted the GAP analysis. The results are as
follows.custemes is not satisfied with quality of cement. So the company wants to bridge the gap and provide the better quality of cement to the customer.
Step: - 5FRAMING THE ALTERNATIVE STRATEGIES-
After making the SWOT analysis and gap analysis the management need to frame the alternative
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading strategies on the basis of porter generic strategies i.e. cost, Focus, differentiate.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Cost
The low cost leader in any market gains competitive advantage from being able to many to produce at the lowest cost. Factories are built and maintained; labor is recruited and trained to
deliver the lowest possible costs of production. 'Cost advantage' is the focus. Costs are shaved off
every element of the value chain. Products tend to be 'no frills.' However, low cost does not
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading always lead to low price. Producers could price at competitive parity, exploiting the benefits of a bigger margin than competitors. Some organizations, such as Toyota, are very good not only at producing high quality autos at low price but have brand marketing skill to use the policy.
Differentiate.
Differentiated goods and services satisfy the needs of customers through a sustainable
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading competitive advantage. This allows companies to desensitize prices and focus on value that generates a comparatively higher price and a better margin. The benefits of differentiation
require producers to segment markets in order to target goods and services at specific segments, generating a higher than average price. Focus
The focus strategy is also known as a 'niche' strategy. Where an organization can afford neither a
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading wide scope cost leadership or a wide scope differentiation strategy, a niche strategy could be more suitable. Here an organization focuses effort and resources on a narrow, defined segment of
a market. Competitive advantage is generated specifically for the niche. A niche a niche strategy could be more suitable.
Step:-6 CHOICE OF STRATEGIES:
The origination cannot implement the alternative strategies. The ambuja cement company had
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading selected the focus strategies.
2) PHASE2:-STRATEGIES implementation:
The strategies are formulated for each and every function department such as marketing,
finance, HR, operation. Once the strategies re formulated than next step is implemented for such
strategies. This strategies implementation stage is carried out by middle level management or function level stage of strategies management.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading The strategies implementation stage involves following element.
Step:- 1FORMALATING OF PLANS PROGRAMMS AND PROJECT:
There is need to frame plans ,programs and project strategies by itself does not leads to action plans result in different kinds of programs.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading The company is implementing a project - Connect India Plus”, which aims at connecting all the
plants, business places across India online, under a standardized business template to run on SAP software.
Step:-PROJECT IMPLEMENTATION
Project passes to various stages before the actual implementation .the various phases are as follows.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading a) Conception phase- idea generation.
b) Definition phase-preliminary analysis.
c) Planning and organizing phase-required resources. d) Implementation phase-implementing the project. e) Clean up phase-discontinuation of project.
step3:-PROCEDURIAL IMPLEMENTATION
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Company uses the FEMA regulation for implementation of this project. Step4:-RESOUCESS ALLOCATION
Ambuja Cement Company uses the physical financial human resources for implementation of this project.
Step:-5STRCTURAL IMPLEMENTATION
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading There is need for organization structural implementation strategies. The organization structure is
the framework through which organization operates there can be various organizations structural for implementation of the strategy.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Step6:-FUNCTIONAL IMPLEMENTATION
The implementation of “Project CONNECT” India Plus started in June, 2007& is expected to go
live in August, 2008. After the Go Live, all operations, locations and transactions will become fully integrated in a manner that is in line with the updated data and information. The new
system will greatly enhance the company’s capability to capture and process a comprehensive
range of data to be used for decision making and day-to-day operations, while automating some
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading processes which were not part of the IT legacy system. The functional manger belonging to areas of the HR and operation.
Step7:- BEHAVIOURAL IMPLEMENTATION:
It deals with those aspects of strategic implementation that have to impact on the behavior s on the strategies in implementation that have to impact on the behaviors of strategies in
implementing the strategies. The behavioral implementation deals with the issue of leadership,
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading corporate culture, corporate politics and use of power personal values, business ethics and corporate social responsibility.
PHASE 3: STRATEGIC EVALUATION Step 1: - SETTING OF STANDARDS:
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading As per the standards set by the company the employees has to function. Along with the standards the company should not forget it ultimate objective or goals. Step 2:- MEASUREMENT OF PERFORMANCES:-
The set standards are then measured with the actual performance.
Step 3:- COMPARISON OF ACTUAL STANDARD WITH STANDARDS
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading The comparison after measuring is evaluated on the bases of performance which can positive or negative. It means the deviating in achieving the targets. Step 4:- ANALYSING THE DEVIATION
For eg: - the standards were to produce 1000 units but actual production is 900 the it is called negative deviation. So it should keep in mind while evaluating a performance.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Step 5:- TAKING CORRECTIVE MEASURES
After doing all evaluation the proper measures are required to be taken.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading BCG Matrix
The Boston Consulting Group (BCG) Matrix is a simple tool to assess a company’s position in terms of its product range. It helps a company think
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading About its products and services and make decisions about which it should keep which it should let go and which it should invest in further.
In 1970’s, BCG experience curve work led to inside that has a significant impact on
business thinking i.e. of rapid growth in market share was the important as the curve suggested
then the usual approach resource allocation in which each business unit funded in on growth seems to be recipe for it failure.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Business with low market share but high potential would never generate enough cash to
win the race down the experience curve. Those with the high market share but few changes of growth would generate far more cash than those would use productivity. The BCG matrix can be diagrammatically represented as follow
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Question Marks
Question marks are products that grow rapidly and as a result consume large amounts of cash,
but because they have low market shares they don’t generate much cash. The result is a large net cash consumption. A question mark has the potential to gain market share and become a star, and
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading eventually a cash cow when the market growth slows. If it doesn’t become a market leader it will
become a dog when market growth declines. Question marks need to be analysed carefully to determine if they are worth the investment required to grow market share.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Dogs
Dogs have a low market share and a low growth rate and neither generates nor consumes a large
amount of cash. However, dogs are cash traps because of the money tied up in a business that has little potential. Such businesses are candidates for divestiture.
Stars
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Stars generate large sums of cash because of their strong relative market share, but also consume
large amounts of cash because of their high growth rate. So the cash being spent and brought in approximately nets out. If a star can maintain its large market share it will become a cash cow when the market growth rate declines.
Cash Cows
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading As leaders in a mature market, cash cows exhibit a return on assets that is greater than the market
growth rate – so they generate more cash than they consume. These units should be ‘milked’
extracting the profits and investing as little as possible. They provide the cash required to turn question marks into market leaders.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading BCG MATRIX OF AMBUJA CEMENT:
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading MARKET SHARE
STAR QUESTION mark AMBUJA CEMENT
CASH COW DOG
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading RATE
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Ambuja Cement enjoys the position of STAR in the BCG Matrix i.e. high market share & high market growth. Compared to others, Ambuja has highest Net Profit having market share of 18.12% in the cement industry. Overall it has 3rd largest sales turnover.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Secondly, if we look at the overall cement industry it is having high market growth as cement industry depends on infrastructure, housing, roads, irrigation, etc which are currently in the booming stage. So the strategy to be followed is to HOLD the position of STAR by reinvesting their profits and using this profit to increase their turnover and gain the highest market share.
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The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading MCKINSEY 7S FRAMEWORK
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Introduction
This paper discusses McKinsey's 7S Model that was created by the consulting company McKinsey and Company in the early 1980s. Since then it has been widely used by practitioners and academics alike in analyzing hundreds of organisations. The paper explains each of the
seven components of the model and the links between them. It also includes practical guidance and advice for the students to analyse organisations using this model. At the end, some sources for further information on the model and case studies available on this website are mentioned.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading The McKinsey 7S model was named after a consulting company, McKinsey and Company,
which has conducted applied research in business and industry (Pascale & Athos, 1981; Peters & Waterman, 1982). All of the authors worked as consultants at McKinsey and Company; in
the 1980s, they used the model to analyse over 70 large organizations. The McKinsey 7S
Framework was created as a recognizable and easily remembered model in business. The seven variables, which the authors term "levers", all begin with the letter "S":
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Figure: McKinsey's 7S Model
These seven variables include structure, strategy, systems, skills, style, staff and shared values. Structure is defined as the skeleton of the organisation or the organisational chart. The authors
describe strategy as the plan or course of action in allocating resources to achieve identified
goals over time. The systems are the routine processes and procedures followed within the organisation. Staff are described in terms of personnel categories within the organisation (e.g.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading engineers), whereas the skills variable refers to the capabilities of the staff within the organisation as a whole. The way in which key managers behave in achieving organisational goals is considered to be the style variable; this variable is thought to encompass the cultural
style of the organisation. The shared values variable, originally termed superordinate goals, refers to the significant meanings or guiding concepts that organisational members share (Peters and Waterman, 1982).
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading The shape of the model (as shown in figure) was also designed to illustrate the interdependency of the variables. This is illustrated by the model also being termed as the "Managerial
Molecule". While the authors thought that other variables existed within complex
organisations, the variables represented in the model were considered to be of crucial importance to managers and practitioners (Peters and Waterman, 1982).
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading The analysis of several organisations using the model revealed that American companies tend to focus on those variables which they feel they can change (e.g. structure, strategy and
systems) while neglecting the other variables. These other variables (e.g. skills, style, staff and
shared values) are considered to be "soft" variables. Japanese and a few excellent American
companies are reportedly successful at linking their structure, strategy and systems with the soft variables. The authors have concluded that a company cannot merely change one or two variables to change the whole organisation.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading For long-term benefit, they feel that the variables should be changed to become more congruent as a system. The external environment is not mentioned in the McKinsey 7S Framework,
although the authors do acknowledge that other variables exist and that they depict only the
most crucial variables in the model. While alluded to in their discussion of the model, the notion of performance or effectiveness is not made explicit in the model.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 7S MCKINSEY MODEL OF AMBUJA CEMENT LTD
The 7S model can be used in a wide variety of situations where an alignment perspective is useful, for example to help you:
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
Improve the performance of a company.
•
Examine the likely effects of future changes within a company.
•
Align departments and processes during a merger or acquisition.
•
Determine how best to implement a proposed strategy.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading The Seven Elements
The McKinsey 7S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements:
Hard Elements
Soft Elements
Strategy
Shared Values
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
Structure
Skills
Systems
Style Staff
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading "Hard" elements are easier to define or identify and management can directly influence them:
These are strategy statements; organization charts and reporting lines; and formal processes and IT systems.
"Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading The way the model is presented in Figure 1 below depicts the interdependency of the elements and indicates how a change in one affects all the others.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading GE GROWTH MARTIX / GE PLANNING GRID / MCKINSEY MATRIX
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading The GE matrix/ McKinsey matrix is a model to perform business portfolio analysis on the
strategic business unit of a corporation. General Electric of USA with the support of
consulting firm McKinsey and company developed a more complicated matrix as a technique of portfolio analysis. The aim of portfolio analysis was:
To analysis it current business portfolio and decide which SBU should received more or less investment.
To develop growth strategy for adding new product and business to the portfolio.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Decide which business or product should no longer be retained
The GE business screen includes 9 cells based on 2 parameter i.e. long term industries
attractiveness/ market attractiveness and business strength/ competitive position. GE matrix includes;
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INDUSTRIES ACTRACTIVNESS • • • • • •
Market growth rate Profitability Size Pricing Practices Opportunities
BUSINESS STRENGTH • • • • • •
Market share Technological position Profitability Size Strength Weakness
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
Threats
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 1
High
1
2
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 2
Medium
3
1
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Low
2
3
3
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Strong
Averag e
Weak
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading GE Matrix is divided into 9 cells:
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
CELLS
INDICATE
Company should investment or Growth
1
such
as
market
development,
expansion of business Company should hold and maintain of
2
current strategy
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
3
Company
should
stop
retrenchment strategies
and
select
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Note: Since the AMBUJA CEMENT LTD has only cement business. Company does not have any strategic business unit, so company does not have GE GROWHT MATRIX/GEPLANNING GRID/MCKINSEY MANTRIX. 176
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading STERGICE MANGEMENT AND ORGANSATION STRUCTURE
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 1. Once the mission, vision, objective, goals, values, programs, strategy etc are define for
the organization the manager has to implement and executive the chosen strategy by developing organization capabilities reach the target objective on the schedule time.
2. Strategy execution on strategy implementation is an execution is an action oriented process which is aim to achieve complementary and capability for effective organization.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 3. As firm grows their structure generally changes from simple to complex structure for
example small firm are functionally structure but as they grow in size and are medium to
size and they tend to divisionally structure, where large organization are matrix structure .
4. There are many internal external factor that affect the organization structure, thus the
manager must their after closely examine the way of their company structure in order to decide what if any changes should be made in the work is accomplished.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 5. There are four types of organization structure and they are as follows.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading STERGICE MANGEMENT AND ORGANSATION STRUCTURE OF AMBUJA CEMENT:
They follow the divisional structure:
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Ambuja cement having only cement business. Company follows the divisional structure. This
requirement of business growing to medium is fulfilled by structure called as divisional structure. Divisions of Ambuja Cemnt Company are as follows.
a) GEOGRAPHICAL AREA-ambuja cement company have their business in different
geographical areas they are as follows:
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading NORTH ZONE- Rajasthan (Pail), Punjab (bhatinda), Himachal (darladhat, rqpar)
EAST ZONE-west bangal (Sanskrait) WEST ZONE- Gujarat (kodinar)
b) Product and services-Ambuja cement only having cement business.
Pradesh
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading c) Customer-retail customer
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading GEOGRAPHICAL LOCATION OF AMBUJA CEMENT COMPANY
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading TYPES OF STRATEGIES
1. Grand Strategies
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading When a firm bases its plans for expansion on acquiring existing businesses, the grand strategy is one of acquisition growth.
2. External Acquisition Strategies •
Horizontal Integration
•
Vertical Integration
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
Diversifications
•
Concentric
•
Conglomerate
3. Horizontal Integration
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
The long-term strategy of a firm is based on growth through the
acquisition of one or more similar businesses operating at the same stage of the production-marketing chain. •
Domination of a market at one stage of the production process by
monopolizing resources at that stage. •
Such acquisitions provide access to new markets for the acquiring firm
and eliminate competitors.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading 4. Vertical Integration •
Vertical integration is the degree to which a firm owns its upstream
suppliers and its downstream buyers. •
Contrary to horizontal integration, which is a consolidation of many firms
that handle the same part of the production process, vertical integration is typified by one firm engaged in different aspects of production (e.g. growing raw materials, manufacturing, transporting, marketing, and/or
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading retailing).
5. backward Integration •
The main reason for backward integration is the desire to increase the
dependability of supply or quality of raw materials or production inputs. •
The concern is really great when the number of suppliers is small and the
number of competitors is large.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
Vertically integrating firm can better control its costs and thereby improve
profit margin of the expanded production/marketing system.
6. Forward Integration •
Forward integration is the preferred strategy if the advantages of stable
production are particularly high.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
A business can increase the predictability of demand for its output through
ownership of the next stage of its production/marketing chain.
7. Risk of Vertical Integration •
For vertically integrated, the risks result from expansion of the company
into areas requiring strategic managers to broaden the base of their competencies & assume additional responsibilities.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
Raymond has become vertically integrated by constructing state-of-the art
facilities for its garment manufacturing companies as well as design studios established through joint ventures and retail operations. •
AMBUJA CEMENT sees retail expansion as an important way to
penetrate the market and increase sales even further.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
Recently, AMBUJA CEMENTambuja cement expanded their operation in
east zone. Company increase production Capacity from 16 mn Tones’ to 22 mn. Tones’.
8. MARKET
DEVELOPMENTS
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
Despite the significant capacity additions in the industry, the Company kept pace with the double digit demand growth, and maintained its strong position of approximately
18%market share in its main markets, and around 10% on an all India basis. Sales volumes increased by 6.5%, to 18.8 million tonnes in 2009 as against 17.6 million tonnes in 2008.
•
The Company has built a large network of over 6,000 dealers and 20,000 retailer’s
across18 states in India. Its reach and penetration helps the Company to manage the last
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading mile delivery across our relevant markets, and gives us a strong positioning in the booming rural markets.
•
Along with strong brand equity, Ambuja has evolved a unique model of channel management, based on values of trust and relationships. The strong bond between the
dealer network and the Company has helped Ambuja to withstand severe competition for more than two decades. With the added support of Holcim's rich experience of operating
in 70countries, Ambuja has now added sophisticated IT tools and global channel
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading management tools to its traditional Indian model, thus adding to our capabilities to face stiff competition endemic to large capacity additions.
•
Holcim's global experience has also helped Ambuja in fine tuning its product quality
management, by introducing best practices from other countries. It has helped in enhancing the overall marketing mix, clearly targeted at the retail market in semi urban and rural sectors, and the large buyers in the metros and mega cities.
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
Our network of port, bulk terminals, and bulk cement ships, on the west coast has
supported a sustainable strong market position in Mumbai and Surat. In 2009, another bulk terminal in Kochi has been added to the network to establish a footprint in Kerala
Conclusions
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading •
Solid market position built up within short period of time through organic growth and acquisitions.
•
Pin-pointed positioning tied to substantial captive infrastructure to serve markets including sea transportation, capability to export
•
High use of alternative raw materials in production of composite cements
•
Substantial greenfield and brownfield expansion plans to grow within the attractive
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading markets and an internal financing capability to fund expansion projects
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading Bibliography
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading www.google.com
www.ambujacement.com www.yahoo.com
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading
INTRODUCTIO
The cement industry is one boom. With robust demand future. The Indian Cement tones is the second largest a Cement consumption in In from 2007- 08.Among the consumption at 12.18%,fol Andhra Pradesh is leading