Topic: Gujarat Ambuja Cost Leader in The Indian Cement Industry'
Topic: Gujarat Ambuja Cost Leader in The Indian Cement Industry'
Topic: Gujarat Ambuja Cost Leader in The Indian Cement Industry'
In 2003 with a total capacity of 144 mn tons India was World's second
largest cement producer after China.
Production capacity 15 Million Tones (MT).
The top 5 companies accounted for over 48.5% of the total capacity.
Total 120 plants, owned by 50 major companies across the nation.
Indian Cement Production
The rest of the companies, typically, were operating single-location plants
with capacities ranging from 0.5 to 2.0 mtpa.
Leading cement companies like Grasim, Larsen & Toubro, Gujarat
Ambuja, ACC, India Cement, Madras Cement and Shree Cement alone
had added over Rs 20,000 crore to their market capital as the combined
market capital had touched Rs 31,724.40 crore in Dec 2003.
Competitors Market Share
Gujarat was the largest cement producing state with a capacity of
around 15 million tonnes in end 2003.
The total cement demand was, however, only around 6 MT. The excess
output was sold in states like Maharashtra, Rajasthan and Kerala.
The demand for cement was closely linked to the performance of the
Indian economy. Cement was consumed in large quantities by the
infrastructure sector.
Manufacturing of Cement
Wet process
Semi dry process
Dry process
The Cement Manufacturing Process
GACL’s total cost management (TCM) drive had concentrated on two
key areas – productivity and consumption of coal and power.
GACL had achieved more than 100 % capacity utilization from 1999.
GACL consumed only 96 kwh of power per ton of cement against the
industry average of 110-115 kwh per ton.
In the process, GACL brought the
Energy bill down by Rs. 20 for every tonne of crushed sugarcane used.
GACL replaced V belt drives (which consumed more energy due to
friction) by flat belt drives.
Even though mechanical conveyors gave problems like spillages and
breakdowns, GACL did not shift to pneumatic conveyors, which
consumed more power.
Instead, the company devised an improved version of the mechanical
conveyor to eliminate the drawbacks.
GACL engineers successfully reduced the power costs, from 120 units/ton
to 90 units/ton, by adjusting the retention time, maximum temperature
and the rate of cooling.
Methods used
GAGL was one of the first cement producers of the country to introduce
an Integrated logistic system
Order processing Systems:
Linked with WAN(Wide area network), EDE(Electronic data exchange),
MRP(Material resources Planning)
Inventory Management :
Inventory decisions involved knowing both, When to order(timing) and how
much to order(Quantity).
Packing :
GACL was the first to use paper bags for cement packaging which offered a
significant advantages such as better preservation and appearance.
Transportation
The Dumps
Trans-shipment point storage
Connected online with various departments- efficient delivery
Future Outlook
Surabhi Vyas
Teja Gurajapalli
Simran Shaikh
Srishti Sachdeva
Somesh Sindhwani
Somik Jain
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