Gujarat Ambuja Ltd.

INTRODUCTION
 Ambuja Cements Limited, formerly known as Gujarat
Ambuja Limited, is a major Cement producing company in
India.
 Ambuja Cements Limited was set up in late 80s. The
cement industry presented an opportunity of steady growth
and ethical competition to the promoters. The Group's
principal activity is to manufacture and market cement and
clinker for both domestic and export markets.
 However, a decade later, it became one of world’s most
efficient cement companies producing the finest cement in
the world at the lowest cost while adhering to the most
stringent international pollution-control norms.
 INTRODUCTION
 Today, Ambuja is the 3 rd largest cement company in India,
with an annual plant capacity of 16 million tonnes including
Ambuja Cement Eastern Ltd. and revenue in excess of
Rs.3298 crores.
 Its focus is on: Best quality cement, Good packaging,
Logistic management - strong distribution network, and
Customer service.
 GOALS AND OBJECTIVES
 MISSION: "Energize, involve and enable communities to
realize their potential."
 VISION: The company’s most distinctive attribute is its
approach to the business. Ambuja believes its most valuable
assets aren’t cement plants. They are the people who run the
plants. This unique vision is encapsulated in the company’s
homegrown philosophy of giving people the authority to set
their own targets, and the freedom to achieve their goals. It's
called ‘I can’’. 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.
 GOALS AND OBJECTIVES
The objectives of the Company are:

 Better quality.
 Fair returns to share holders.
 A higher productivity to cover maximum market.
 Maximum customer satisfaction.
 Clean and healthy environment for employees’ growth.
 Low pollution to fulfill social responsibilities.
PLANT LOCATIONS
 ACHIEVEMENTS
 Ambuja Cements won prestigious National
Award for Environmental Excellence
Ambuja has received the highest quality award -

the National Quality Award

First cement company to first to receive the ISO

9002 quality certification

Ambuja received ISO 2000 for pollution free

production
India's largest exporter of cement. Received Best

Award for highest exports by CAPEXIL.

Award for corporate excellence from Harvard

Business School Association

 Broad Strategies
applied by the Management
 Captive infrastructure :Ports & Power Plants
 35% Cement transport by sea - Cheapest Mode
 One of the Lowest Cost Cement Producer
 Emphasize on Quality
 Extensive & primarily exclusive distribution
network-Over 6,000 dealers and 20,000 retailers
 Advertising and Publicity campaign
 Expansion strategy
 MANUFACTURING PROCESS

 Cement is manufactured by using the mixture

of limestone, clay, sand,laterite, bauxite and
iron.
 The mixture is burnt at a high temperature of
1,400 to 1,500 degree Celsius.
 The resultant clinker (a final product) is made
which is then mixed and grinded with gypsum
to form cement for final use.
The process of manufacture is divided broadly into 3
stages…………..
 Stages of process:-

1. Preparation of the raw materials

2. Burning process of the raw materials in kiln and
3. Grinding the clinker to the finished products
Type of Processes:-
 There are mainly 3 types of processes to get the final

product. These processes are as follows…………….

A. Wet process.
B. Semi dry process.
C. Dry process.
A. Wet Process:-
This is the old process of manufacturing of cement. In this
process the raw material is grinded with sufficient water. The
mixture contains 30% to 40% of water. But it is not useable
because it uses higher coal consumption 30% to 35% as
compared to dry process.
B. Semi dry Process:-
In this process the raw material is processed in dry state and the
grinding raw material is neutralized by addition of 10% to 20%
water.
C. Dry process :-
This is the modern method of production. In the dry process
limestone and clay are fed into a grinding mill with passing hot
air. The materials are heated and dried thoroughly and then
reduced to fine powder know as raw material. The raw material is
mixed with a little water and formed into nodules in nodulising
fan. The nodules are then fed into a moving grate through which
the hot gases from the rotary kiln are passed.
 (A). MINING STAGE :
The limestone comes out from mine by drilling and
blast method. And it reaches at plant by huge
damper having the carrying capacity of 35 tones.
(B). CRUSHER STAGE :
Limestone and marl are fed into the crusher plant
which crushes the size of 100 mm maximum. This
crushed material is taken to the further stage.
(C). STACKER STAGE :
The stacker makes stock piles for pre blending in
about 350 to 400 layers. Sample of limestone are
taken out every 5 minutes for analysis in the
laboratory to determine their chemical properties.
This analysis is done to determine the composition
of the stock pile.
 (D). RAW MILL STAGE :
Raw mill is a vertical roller mill which crushes the
material into fine powder.
(E).BLENDING SILO STAGE :
In this stage silo blends material by clarification.
Material gives correct weight of the fed material.
(F). PRE-HEATER STAGE:
In this stage, the material is passed from the top
and the hot gases upwards from the kiln so, the
materials come down and take heat.
(G). PRE-CALICIFATION:
In the pre-calcification,5% of powdered coal is
fired. Because of the ore-heating and kilns being
calcified about 85%to 90% material is calcined
before the materials enter the coco3 with calcium
oxide (quick lime) and carbon dioxide.
 (H). CLINKERISATION:
This material then enters the kiln, which rotates it with
slow speed. The material then enters the sintering zone
where the temperature is around 1400 c to 1500 c. Then
the clinker is cooled and it is taken in big bucket for
storage.
(I). CEMENT MILL:
In this stage gypsum is added in cement about 4% to
6%.The gypsum is added because this has effect
regarding the setting time of cement thereby providing
time for work to be performed in planning the concrete.
Then it is gone for packing department as and when
required.
 (K). QUALITY CONTROL:
To maintain quality it is required that every step of
manufacturing process is checked by proper
measurement and in ambuja the whole process, right
from feeding of raw materials to manufacturing of
cement is controlled by Japanese computers. Because
of that it is possible to manufacture better quality of
cement. It uses CCU (Close Circuit Unit), in the
manufacturing process so that they improve their
quality of cement and productivity of cement.
(J). PACKING:
The final step of cement is packing. The capacity of
each packer is 2400 bags per hour. The total capacity
is 4800 bags per hour. Then they are carried by trucks
of wagons from one place to other place.
Business Level Strategy
1. BCG MATRIX
2. SWOT ANALYSIS
BCG MATRIX
 SWOT Analysis
 Strength
 Growth at approx CAGR of 9% in last 5 years
 Growing Domestic cement consumption at approx
CAGR of 8% in last 3years
 Highly Capital Incentive so difficult for small
entrant
 Not much restriction by govt.
 Market consolidation taking place
 High quality cement
 Good packaging
 Advanced technologies
 Weakness
 High Oil Prices, Cost of Power increase
production cost
 Supply exceeds Production lead to competition
in price
 Low Quality as compared to international
standard but improving.
 Opportunity
 High Mortgage Penetration - Low Interest
Rates
 Easy loan availability for housing finance
 Increased investments in Infrastructure
 Increased govt. outlay on BHARAT
NIRMAN, GOLDEN
QUADRILATERAL,BRTS etc.
 Threat
 · Further Hike in Oil Prices
 · Use of plastic engineering in construction
 · Sub prime market loss may affect
Competitors
 Competitive Advantage
 Low Cost Producer
 Ambuja Cement is the lowest cost producer of
cement in the world
due to following factors:-

 Freight: The most successful of GACL’s

innovative strategies
 of cost cutting was idea of Sea Transportation.
 Fuel: Fuel strategy was also cost cutting factor
 Power: They have established their own captive
power plant of 178 MegaWatts