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    Assignment: Macroeconomic & Business Environment

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    Himanshu Shekhar
    Ambuja Cements Ltd is a major Indian cement producer established in 1983 as a joint venture. It has 13 integrated cement plants and grinding units across India. Over the past decades, Ambuja has expanded its operations and increased production capacity. Its sales have grown steadily over the past 5 years due to increased demand from infrastructure growth and the real estate sector in India. However, Ambuja faces risks from rising energy costs, logistics challenges, and competitive pressures in the domestic cement market.

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    Assignment: Macroeconomic & Business Environment

    Uploaded by

    Himanshu Shekhar
    68 views10 pages
    Ambuja Cements Ltd is a major Indian cement producer established in 1983 as a joint venture. It has 13 integrated cement plants and grinding units across India. Over the past decades, Ambuja has expanded its operations and increased production capacity. Its sales have grown steadily over the past 5 years due to increased demand from infrastructure growth and the real estate sector in India. However, Ambuja faces risks from rising energy costs, logistics challenges, and competitive pressures in the domestic cement market.

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    Ambuja Cements Ltd is a major Indian cement producer established in 1983 as a joint venture. It has 13 integrated cement plants and grinding units across India. Over the past decades, Ambuja has expanded its operations and increased production capacity. Its sales have grown steadily over the past 5 years due to increased demand from infrastructure growth and the real estate sector in India. However, Ambuja faces risks from rising energy costs, logistics challenges, and competitive pressures in the domestic cement market.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    68 views10 pages

    Assignment: Macroeconomic & Business Environment

    Uploaded by

    Himanshu Shekhar
    Ambuja Cements Ltd is a major Indian cement producer established in 1983 as a joint venture. It has 13 integrated cement plants and grinding units across India. Over the past decades, Ambuja has expanded its operations and increased production capacity. Its sales have grown steadily over the past 5 years due to increased demand from infrastructure growth and the real estate sector in India. However, Ambuja faces risks from rising energy costs, logistics challenges, and competitive pressures in the domestic cement market.

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    of 10

    ASSIGNMENT

    Macroeconomic & Business Environment

    Ambuja Cement Economic Analysis

    SUBMITTED TO Dr. Gauri Modwel

    SUBMITTED BY
    Avinash kumar srivastava

    M- 3 , 197

    TABLE OF CONTENTS

    1. Profile of the company (a)Area of Operation (b)Products Dealing In 2. Economic Variable (a)Sales of the Company for last five years. (b)Growth of the Company (c )Reasons for growth. (d)Gross profit and Net Profit.. (e)Competitors ... (f)Risks and Prospects..................................................... 3. Reference/Bibliography.. 5 5, 6 6, 7 7, 8 9 9, 10 11 3 4

    Profile of the company

    Industry : Establishment : Founder : Headquarter : Area served : Products :

    Cement 1983 Narottam sekhsarai, suresh Neotia Mumbai, Maharastra, India India, Srilanka Cement

    Ambuja Cements Ltd(ACL) was incorporated in the year 1981 as Ambuja Cements Pvt Ltd. The company was established as a joint venture between the public sector Gujarat Industrial Investment Corporation (GIIC) and Narottam Sekhsaria & Associates. In May 19, 1983, the company was rehabilitated into a public limited company. Subsequently, the company name was changed to Gujarat Ambuja Cements Ltd. Further, the name was changed to Ambuja Cements Ltd. Ambuja Cements is a major cement producing company in India. The principal activity of the company is to manufacture and market cement and clinker for both domestic and export markets.

    Area of operation
    The company has five integrated cement manufacturing plants and eight cement grinding units. It is the first Indian cement manufacturer having a captive port with three terminals along the country's western coastline to facilitate timely, cost effective and environmentally cleaner shipments of bulk cement to its customer. The company has its own fleet of ships. The company subsidiaries include: 1.Dang Cement Industries Private Ltd, 2.M.G.T Cements Private Ltd, 3.Chemical Limes Mundwa Private Ltd and 4.Dirk India Pvt Ltd. In the year 1985, the company set up a cement plant in technical collaboration with Krupp Polysius, Germany, Bakau Wolf and Fuller KCP. During the year 1988-89, the company commissioned the 12.6 MW diesel-generating sets. In the year 1991, they got necessary approvals for setting up another cement plant with 1 million tonne capacity per annum at Himachal Pradesh. The company undertook bulk cement transportation, by sea, to the major markets of Mumbai, Surat and other deficit zones on the West Coast. In the year 1997, the company started commercial production in Kodinar plant with an enhanced capacity. In the year 1998, they set up a $20 million clinker Grinding unit in Sri Lanka.
    4

    In the year 2000, giants Larsen & Tubro (L&T) and Gujarat Ambuja Cements entered a unique agreement to reduce transportation costs in dispatching bulk cement in Gujarat. Also, they entered into an annual contract with a Soinhalese firm, Mahaveli Marine Cement, to supply around 2.5 lakh tonnes of cement. In the year 2002, the company started commercial production at Maratha Cement Works plant. In June 2002, they started commercial production in the new 2-million tonne Greenfield cement plant at Chandrapur, Maharashtra. In the year 2004, Ambuja Cement Rajasthan was amalgamated with the company. In February 2005, set up a cement mill with a capacity of 80 TPH at Darlaghat and commenced commercial production. Commissioned a captive thermal power plant with two 12 MW Steam Turbo Generators (STG), with two boilers of 45 TPH capacity each at a cost of Rs.94 crore. The first STG was commissioned in February 2005 and the second in May 2005. In July 2005, Indo-Nippon Special Cements Ltd, a subsidiary company was amalgamated with the company. The company set up new clinker capacity at Bhatapara in Chattisgarh and Rauri in Himachal Pradesh, each having a capacity of 2.2 million tonnes per annum at a cost of Rs. 1600 crore. In 2006, Global Cement Major Holcim, acquired management control of the company. Today, Holcim holds a little over 50% equity in ACL. The company commenced commercial production at two new 2.2 million tonne clinker production

    lines, at Bhatapara (Chattisgarh) and Rauri (HP) in December 2009 and January 2010 respectively. In February 24, 2010, the company inaugurated their cement plant (grinding unit) at Dadri, Uttar Pradesh with the capacity of 1.5 million tonnes. In March 27, 2010, they inaugurated their cement plant (grinding unit) at Nalagarh, Himachal Pradesh with the capacity of 1.5 million tonnes. During the year, the company commissioned an additional 30 MW captive power unit at Ambujanagar (Gujarat). In October 2010, signed an agreement with the Rajasthan State Industrial Development and Investment Corporation, to set up a 2.2 million tonne clinkerisation unit in Nagaur district. In December 2010, the Dadri Grinding Unit in its very first year of operation received the Integrated Management System (IMS) Certification, including ISO 9001:2008, ISO 14001:2004, and OHSAS 18001:2007 by BSI (U.K.). In the year 2011, the company started commercial production in a new cement mill at a cost of approx Rs 185 crore at Bhatapara plant. Also, they commissioned a new cement mill of 0.9 million tonne cement grinding capacity at Maratha Cement Works plant at a cost of approx Rs 61 crore. The company commissioned a 7.5 MW Wind Mill project in Kutch, Gujarat at a cost of Rs 46 crore. The company increased the installed capacity in Bhatinda grinding unit in Punjab by 0.1 million tonne to reach at 0.6 million tonne.
    6

    Also, they increased the installed capacity in Farraka grinding unit in West Bengal by 0.25 million tonne to reach at 1.25 million tonnes. In June 2011, the company made strategic investments in Dang Cement Industries Pvt. Ltd, Nepal and acquired 85% shareholding for Rs 19.13 crore to help further expansion of capacity in the northern region of India and Nepal. In September 2011, they acquired 60% shareholding in Dirk India Pvt Ltd, Maharashtra Rs 16.51 crore. Entered into a joint venture for speciality cement manufacturing facility in Goa with Counto Microfine Products Pvt Ltd.

    Products dealing in
    It mainly deals in cement production and its distribution across various parts of country and world. Network of 6000+dealers and 18000+retailers across 18 states of india. The primary product is cement which is used in contruction purpose. For infrastructure buildind, in Real estate companies

    5 year sales report

    Growth,gross profit & net profit

    Resons for growth


    Growing economy of the country Rising per capita income Rapid growth in infrastructure Increasing demand of housing Growth of Real Estate Companies

    Risks and areas of concern


    Energy cost : Coal will continue to be one of the primary inputs for cement production process. And securing reliable supply of indigenous coal of consistent quality remains a key area of concern. Logistics infrastructure : Road and rail infrastructure development is important enabling the ever increasing demand of cement to be delivered to relevant markets cost effectively. Shortage of rail wagons in particular have imposed logistical contraints.

    Competitive environment : The pace of new capacity addition by the industry has not been as fast as previously anticipated. Therefore pricing pressure still occurs.

    Taxation : Taxation remains a perennial issue for cement industry.

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