Gujarat Ambuja Cement Limited | Operations Management

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

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

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

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

5. GUJARAT AMBUJA'S GROWTH
3rd LARGEST PLAYER IN INDIA
0
1
2
3
4
5
6
1986 2002
Production(Milliontonneperannum)
Years
Gujarat Ambuja's Growth

6. HOW?

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

8. STRATEGIC INVESTMENTS
Unit at Himachal Pradesh
The Himachal Pradesh plant with
grinding facility in Punjab was a
master-stroke which has given GACL
handsome sustainable advantage over
competitors‘ plants located in
Rajasthan and Madhya Pradesh.
Opening the Sea Route
Mumbai was a distance of 1060km by rail
from its plant in Gujarat involving:
 Huge transportation cost.
 Packing cost.
 Delay in delivery.
Sea route bridged the distance to just 315 km
Bulk Cement Transportation at Port Ambuja
Ambuja Shikhar became the country's first-ever ship to carry bulk cement in
September 1993.

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

10. Innovation
GACL is a success story of continuous entrepreneurship a can-do approach, constantly
working on the critical success factors, innovation and aggression.
 Improved energy efficiency
Ran the existing plant at 149 percent capacity.
Coal consumption brought down from 761 to 720.
Power consumption reduced from 92 to 88 units per tonne.
 Acquired new machinery to increase usable limestone and reducing energy consumption.
 Producing PPC (Pozzolana Portland Cement)
In association with Punjab state electricity board Consuming fly ash and producing various
grades of cement.
 Bharat diamond bourse contract
A new chloride resistant cement introduced by R&D department for Chloride rich soil.
 Used efficient devices-surface miner methods for minimising turbulences during drilling and
blasting process.

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

13. SWOT

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

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

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

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

18. THANK YOU.