BIRLA CEMENT

FLOW OF CONTENT
Introduction
Company Overview
Manufacturing Process
Finance
Marketing
HR
Recession
Companys Current Status
Future of the Company
Conclusion
INTRODUCTION
By Saurav and Amneet
HISTORY OF CEMENT
Used in ancient world by :
i. Egyptians as calcined gypsum.
ii. Romans used crushed volcanic ash.
iii. Britain manipulated its properties for
specific application and situation.

The indigenous Indian cement industry
traces its history back in 1914.
Indian cement manufactures association
was set up in 1925.
Before partition India had 24 cement
factories out of which it retained only 19th.

CEMENT INDUSTRY
Decontrol- March 1989.

Oligopolistic nature of cement industry.

Main beneficiary of infrastructure boom.

Indian cement is 2nd largest after china.

Net profit growth rate - 85%

Contribution to Indias economic development - 8%

Presence of few foreign companies.



MAJOR PLAYERS
ACC Limited

Gujarat Ambuja

UltraTech

JK Group

India Cements

Birla Cement
PROSPECTS OF CEMENT
INDUSTRY
Import from Pakistan affecting Indian market.
Excess over capacity can hurt margins as well
as price.
Cement production is cutting down because of
negative pressure on prices.
Cheap labour and government subsidy proves
as a leverage for Indian Cement industry.
CURRENT STATISTICS

According to sales of may 2013 shows 14%
growth over 2012.
Indias per capita consumption is 170kg.
Indian to match its demand have to add
another 150 million tones of capacity.
Provide 6% of employment to unskilled labour
in southern region.
Various subsidy is provided by government for
its growth.
In 2013 it has attracted FDI of US$ 2000
million.

SECTORAL CONSUMPTION
COMPANY OVERVIEW
By Preety Jha
ABOUT US
A metals powerhouse, among the world's most
cost-efficient aluminium and copper
producers.
No.1 in viscose staple fibre
No.1 in carbon black
The fourth-largest producer of insulators
The fourth-largest producer of acrylic fibre
Among the top 10 cement producers
Among the best energy-
efficient fertilizer plants
The largest Indian MNC with manufacturing
operations in the USA

THE INDIAN SCENARIO
The largest fashion (premium branded apparel) and
lifestyle player
The second-largest manufacturer and largest exporter
of viscose filament yarn
The largest producer in the chlor-alkali sector
Among the top three mobile telephony companies
A leading player in life insurance and asset
management
Among the top two supermarket chains in the retail
business
Among the top 6 BPO companies
The largest manufacturer of linen fabric.

VISION AND VALUES
To be a premium global conglomerate, with a clear focus
on each of the businesses.

OUR MISSION
To deliver superior value to customers, shareholders,
employees and society at large.

OUR VALUES
Integrity : Acting and taking decisions in a manner
that is fair and honest.

Commitment : On the foundation of Integrity, doing
all that is needed to deliver value to all stakeholders.

CONTINUED
Passion : An energetic, intuitive zeal that arises
from emotional engagement with the
organization.

Seamlessness: Thinking and working together
across functional groups, hierarchies,
businesses and geographies.

Speed : Responding to internal and external
customers with a sense of urgency.

MANUFACTURING
By Gaurav Vyas
PORTLAND CEMENT
By definition
A hydraulic cement
produced by pulverizing
clinker consisting
essentially of hydraulic
calcium silicates, usually
containing one or more of
the forms of calcium sulfate
as an interground addition
Source: PCA, 2003
Raw Materials Necessary for Portland Cement
Manufacture Must Provide the Following

Calcium

Silica

Alumina

Iron
Calcium Iron Silica Alumina Sulfate
Alkali waste
Aragonite
Calcite
Cement-kiln
dust
Cement rock
Chalk
Clay
Fullers earth
Limestone
Marble
Marl
Seashells
Shale
Slag
Blast-furnace
flue dust
Clay
Iron ore
Mill scale
Ore washings
Pyrite cinders
Shale
Calcium silicate
Cement rock
Clay
Fly ash
Fullers earth
Limestone
Loess
Marl
Ore washings
Quartzite
Rice-hull ash
Sand
Sandstone
Shale
Slag
Traprock
Aluminum-ore
refuse
Bauxite
Cement rock
Clay
Copper slag
Fly ash
Fullers earth
Granodiorite
Limestone
Loess
Ore washings
Shale
Slag
Staurolite
Anhydrite
Calcium
sulfate
Gypsum
Source: PCA, 2003
TRADITIONAL MANUFACTURE
OF PORTLAND CEMENT
1. Stone is first reduced to 125 mm (5 in.) size,
then to 20 mm (3/4 in.), and stored.

2. Raw materials are ground to powder and blended.

or
2. Raw materials are ground, mixed with water to form slurry,
and blended.
3. Burning changes raw mix chemically into cement clinker.
Source: PCA, 2003
3. Burning changes raw mix chemically into clinker. Note
four stage preheater, flash furnaces, and shorter kiln.
PYRO-
PROCESSING
4. Clinker is ground with gypsum into portland cement and
shipped.
Clinker Gypsum
TYPES OF PORTLAND CEMENT
Normal

Moderate sulfate resistance

High early strength

Low heat of hydration

High sulfate resistance


FINANCE
By Nirvick
IS CEMENT INDUSTRY A CYCLICAL
STOCK OR A DEFENSIVE STOCK?
MERGER N ACQUISITION
Grasim Industries and UltraTech Cement- merging.

UltraTech Cement was acquired from L&T.

In 2013, Aditya Birla Group acquired Jaypees Gujarat
cement unit for an enterprise value of Rs 3,800 crore.

Birla said the acquisition will be funded through equity of
Rs 150 crore, debt worth Rs 2,000 crore and the
remainder of Rs 1,650 crore through internal accruals.
CURRENT FINANCIAL STATUS
UltraTech Cement Q3 net profit dips 38 pct to Rs 370 cr.
Profit dip due to subdued selling price of building materials
amidst poor demands.
It had clocked Rs 601 crore net profit in the corresponding
quarter of last fiscal.
Ultratech Cement's net sales also marginally declined to Rs
4,786 crore during the quarter from Rs 4,857 crore a year
earlier.
Total expenses increased to Rs 4,267 crore from Rs 4,072 crore
a year ago.
Freight costs rose to Rs 1,119 crore against Rs 1,059 crore.

In the next 10 years, India will become the main
exporter of clinker and gray cement to the Middle
East, Africa and other developing nations

Many foreign players are also expected to enter the
cement sector in the next years.

PROFIT AND LOSS REPORT
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Total Income
Total Expenses
Operating Profit
Reported Net Profit
Shares in issue (lakhs)
FINANCIAL RATIOS

Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Current Ratio 0.96 0.87 1 0.97 0.71
Quick Ratio 1.23 1.35 1.1 1.11 1.54
Debt Equity
Ratio
0.53 0.72 0.61 0.8 1.2
Inventory
Turnover
Ratio
7.37 7.31 6.07 6.41 7.51
Debtors
Turnover
Ratio
4.34 5.92 6.96 6.1 5.81
Asset
Turnover
Ratio
0.97 0.91 0.76 0.57 0.62
STOCK MARKET
MARKETING
By Yukti Taneja
SOURCES OF COMPETITIVE
ADVANTAGE
ABG acquired L&T cement in 2003 and
named it as UltraTech Cement.

Also possessed Grasim Cement which was
later merged into UltraTech Cement
industry.

Sourcing of raw materials
STPS
Segmentation:
i. Geographical segmentation.

Targeting:
i. Differentiated target marketing.

Positioning:
i. Product differentiation.
ii. Image differentiation.
BRANDING
Represents expertise, strength and modernity.
In-film branding with Chak de India.
IPL connect with Rajasthan Royals and
Deccan Chargers.
Also associated with Business India exhibition-
A celebration of Architecture.
Has also been honoured with the title,
SUPERBRAND by Superbrands Council for
years 2011 and 2012.
MARKET LEADERSHIP
Largest domestic M&A deal of Rs. 3800 cr.
which will increase the capacity of UltraTech
cement to 59 mtpa.

Installed capacity is projected to go up to 70 mt
by 2015.
HR POLICY
By Priyanka Chandgothia
HUMAN RESOURCE MANAGEMENT
Recruitment

STRATOS (On Campus)
i. Flagship competition for management students.
ii. Open only for reputed colleges.

Training / Leadership Program

The program is currently offered at the following levels:
GIP : Group Internship Program
LEAD : Leadership Program for the Experienced
LEAP : Leadership Associate Program
HRLP : Human Resources Leadership Program
FLP : Finance Leadership Program


HUMAN RESOURCES LEADERSHIP
PROGRAM
Post-training period:
Career path that an HRLP participant is
expected to take:
The first role - HR/IR in a manufacturing
location.
The second role - HR generalist in a
manufacturing or service business.
The third role - HR specialist in Group HR
or corporate HR of a business.
HUMAN RESOURCE MANAGEMENT
Learning and Development
Gyanodaya
Continuous Education
E-learning
Leadership programs

Performance Management
Meritocracy
360 Degree Appraisal

HUMAN RESOURCE MANAGEMENT
Benefits
Talent Management Employee as well as
Family
Happiness At Work

Recognition:
i. ABG awards
a. Individual awards
b. Team awards
ii. Pride awards

IS CEMENT INDUSTRY
RECESSION FREE?
By Pallavi
Effect of global recession on real
estate and infrastructure.

Demand and supply gap,
overcapacity.

Increasing cost of production.

High interest rates.
Recession In Cement Industry
Cement : Demand and Growth
COMPANYS CURRENT
STATUS
By Shreysee
Current Status Of Birla Cement
Ultratech Cement is Indias largest white
cement producer.

Among the top 10 producer of Grey Cement in
the world.

Present in 5 Countries- India, UAE, Srilanka,
Bangladesh and Bahrain.

1 white Cement plant and 1 Clinkerisation in UAE.
15 Grinding Units- 11 in India, 2 in Bahrain and 2
Bangladesh
2 Rail Bulk Terminals in India.
4Coastal Terminals- 3 in India and 1 in Srilanka
101 Concrete Plants around the world.

Market Cap over 500 billion and Annual Capacity of 53.9
million tonnes.

Indias largest Cement Clinker Exporter.

Given the title of Superbrand by the Super brands
Council and Consumer Selected Powerbrand by
Powerbrands India.

Given the title of Superbrand by the Super brands
Council and Consumer Selected Powerbrand by
Powerbrands India.

More than 200 sales office across the country.

It provide a range of products:

i. UltraTech Cement engineer choice
ii. UltraTech Concrete (RMC)
iii. UltraTech Building Products
iv. UltraTech Building Solution
v. Birla White
vi. Star Cement

News

Ultratech acquire Jaypee's cement unit in
Gujarat in nearly 3,800 crores.

Ultratech Cement reported a 38.43% dip in
net profit for the October-December quarter
at Rs. 370 crore.

Net sales declined 1.5% to Rs 4,786 crore in
the quarter ended December 2013 from Rs
4,857.4 crore in a year ago period.


EBIDT dropped 25.4% to Rs 764 crore.

Finance cost of the company jumped
73.6% on yearly basis to Rs 90.45 crore
while tax expenses dropped 45 percent to
Rs 139 crore compared to a year ago
period.
FUTURE OF THE COMPANY
By Atrayee
FUTURE ASPECT OF CEMENT
INDUSTRY
Production of cement is expected to cross 400 million
tonnes in the next few years

Demand for cement is increasing at 8-10 per cent

Players can increase their capacities from 210 million
tonnes to 500-600 million tonnes every year

Greater thrust on agriculture and suggested second
green revolution will increase the use of cement in
this industry.

In the next 10 years, India will become the main
exporter of clinker and gray cement to the Middle
East, Africa and other developing nations

Many foreign players are also expected to enter the
cement sector in the next years.

FUTURE ASPECT OF ULTRA-TECH
CEMENT
Amidst near-term weakness, the UTCEM
management is optimistic on the long term growth
prospects of the Indian Cement industry.
Focus on market share and leadership.
Aggressive capex to expand and improve
efficiencies.
Ongoing expansion would increase capacity by
20% over FY14-16 to 64.45MT.
Adopted multiple operating efficiency
enhancement measures to combat cost pressure.
CONCLUSION
By Aditya
SWOT ANALYSIS
STRENGTH OPPORTUNITY
1. Technological excellence 1. Increasing urbanization
2. Growing international presence 2. Industrial growth
3. Product innovation 3. Emerging e commerce
4. Strong brand recognition business

WEAKNESS THREAT
1. Long process chain 1. Loss of sale to substitute
2. Complexity of operation 2. Fluctuation in foreign
market
Aditya Birla ultra tech cement (UNIT OF RAJSHREE
CEMENT) incepted in 1983 since then Birla cement has
been doing business very well .

Birla cement has tolerated many market thrust but still
the company is standing with its glory and a huge
goodwill .

INDIA has 4th largest economy in the world in that
Birla plays an important role to building the India

CONCLUSION

BIRLA always enjoy the loyalty of their customer this
would be possible only Birla maintain their future
scope

INTEGRITY Honesty in every stage
COMMITMENT Deliver on the promise
PASSION Energized action
EMPATHY Creating social belongingness

Basically company providing a strong base structure to
the country and their people creating the hope which
everyone wants