INTRODUCTION

Ambuja Cements was set up in 1986. In the last decade the company has grown tenfold. The total cement
capacity of the company is 16 million tonnes.

Its plants are some of the most efficient in the world. With environment protection measures that are on par with the
finest in the developed world.

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 the lowest cost producer of cement in the
world.

ACHEIVEMENTS

In essence, cement is a simple business. Unlike other industries it does not suffer rapid
technological obsolescence or shifting consumer trends. Therefore, it constantly attracts
new investments. Which results in surplus capacity. This means only the very efficient
players can prosper.

Our people recognize this. And their efforts to constantly raise efficiency has not only raised
the bar at Ambuja. But across the industry as well.

Environment protection measure that conform to the worlds best.

The pollution levels at all our cement plants are even lower than the rigorous Swiss
standards of 100 mg/NM3. The air is so clean that a rose garden flourishes right next to the
main plant.

Benchmarking quality standards for the industry.

Ambuja has received the highest quality award - the National Quality Award. The only

cement company to do so. Its also the first to receive the ISO 9002 quality certification.

Reinventing cement transportation.

Almost 90% of cement in India travels by rail or road. And in bags.

Our people realized that the only way to speed up transportation was a completely different

approach. The result: a bulk transporting system via the sea. Making us the first company to
introduce the concept of bulk cement movement by sea in India.

STRENGTH
PEOPLES
The kiln at our Ambujanagar plant is 15 years old. Yet it keeps increasing productivity year
after year.
Many would consider this an impossible task. Yet, our people continue to achieve ever
higher efficiency and productivity, not just at Ambujanagar, but at all our other plants.
In Himachal, for instance, they've managed to push up production and bring down power
costs. At a plant that was already functioning above capacity. At the same plant they've
managed to cut stabilizing time (a critical task in a cement plant) from upto 18 months to a
mere 3 months.
At our cement shipping terminals in Gujarat, with a few minor modifications, they've
succeeded in exporting clinker, and importing higher quality and far cheaper coal and
furnace oil for our captive power plants.
At our Mumbai terminal meanwhile, they've increased the handling capacity to 100,000
tonnes as against the terminals stated capacity of 60, 000 tonnes. With no additional capital
expenditure.
In the last decade they've managed to keep our power bills to virtually the same amounts
they were in 1989.
All of which proves once again, that an asset is worth only as much as the people who use
it.

INFRASTRUCTURE

Over 40% of the production cost of cement is power.

It quickly became clear to us that if we were to run a profitable company, wed need to keep
power costs to the minimum. So we focused our efforts on improving efficiency at our kilns
to get more output for less power.

Next we set up a captive power plant at a substantially lower cost than the national grid.
We sourced a cheaper and higher quality coal from South Africa. And a better furnace oil
from the Middle East.
The result is that today were in a position to sell our excess power to the local state
government.

Our sea-borne bulk cement transportation facilities meanwhile has brought many coastal markets within the easy
reach. It has also made Ambuja India's largest exporter of cement consistently for the last five years.
ENVIRONMENT POLICY
Our environment policy is built around two simple truths. One, no cement plant can
flourish at the cost of the environment. As one of the countrys largest producers of
cement, with a large presence around the country, we have an obligation to protect
the environment we function in.

Also, as we discovered, being environmentally conscious, almost never interfered

with running a profitable business. In fact its quite the contrary.

Our efforts to achieve world standards in environment protection, for instance, have
had the happy outcome of substantially improving efficiency and profitability. The
fact is, a cleaner environment isnt just better for the people, it reduces wear and
tear on plants and machinery as well. Thus directly contributing to the bottom line.
Besides dust in cement plants is nothing but cement itself, which we capture and
bag.

Our approach has made us the one of the worlds most environment friendly cement
companys. And the most profitable

CeCement Production and Despatches figures of Ambuja Cements Limited for

the month of January 2008 is as follows:

(Lakh Tonnes)
 For the month
Growth
Particulars January -08 January -07 (%)

Cement
Production 15.59 14.77 6

Cement
Despatch 15.51 14.89 4