Ambuja Cement - Amit Malhotra

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Presented By:

Amit Malhotra


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Ambuja Cements Limited, formerly known as Gujarat AmbujaLimited is a major Cement producing company in India wasfounded by Narotam Sekhsaria in 1983 with a partner, SureshNeotia. Sekhsarias business acumen and leadership skills put thecompany on a fast track to growth.

The Company is currently known as Ambuja Cements Ltd.Headquarters: Mumbai, Maharashtra, India.

Ambuja Cements was set up in 1986. In the last decade the

company has grown tenfold. The total cement capacity of thecompany is 18.5 million tonnes. Its plants are some of the mostefficient in the world. With environment protection measures thatare on par with the finest

in the developed world.


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Ambuja Cements Operates 5 cement plants at Ambujanagar(Gujarat), Darlagh (Himachal Pradesh), Chandrapur(Maharashtra), Bhatapara (Chattisgarh) and Rabriyawas(Rajasthan).

Besides, the company has One Clinkerisation Plant at Rauri in

Himachal Pradesh and 8 Clinker Grinding Plants at Ropar andBhatinda in Punjab, Sankrail and Farakka in West Bengal, Surat inGujarat, Roorkee in Uttarachal, Dadri in U.P and Nalagarh inHimachal Pradesh.and with a total cement production of 25.0

million tonnes per annum (MTPA).

Revenue: 7,637.81 crore(US$1.68 billion)2010Website: www.ambujacement.com


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Suresh Neotia, Chairman Emeritus

Co-promoter and Chairman Emeritus of Ambuja Cements Limited,Mr. Neotia is a businessman and an industrialist of repute. Amember of the Central Board of the Reserve Bank of India, Mr.Neotia is also known for his association with numerous culturalinstitutions as well as charitable organisations. The President of

India conferred upon him the Padma Bhushan in the year 2008.

N. S. Sekhsaria, Chairman

An industrialist reputed for his business acumen, Mr. Sekhsaria is

the main promoter of Ambuja Cements Limited. He has creatednew benchmarks in the cement industry with path-breaking andinnovative thinking and turned cement from a commodity into abrand. He is Chairman of ACC Ltd. and also of Ambuja CementsLimited.


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Paul Hugentobler, Vice Chairman

Mr, Hugentobler, a Swiss national, joined Holcim GroupSupport Limited in 1980 as Project Manager and in 1994 wasappointed Area Manager. He has been a member of theExecutive Committee of Holcim since January 2002 withresponsibility for South Asia and ASEAN excludingPhilippines. He joined the Board in May 2006 and inSeptember 2009 was made Non-executive Vice Chairman.

Markus Akermann, Director

Mr. Akermann, a Swiss national, began his professional careerin 1975 with the Swiss Bank Corporation. In 1978, he moved

to Holcim where he was active in roles like Area Manager forLatin America and Holcim Trading. In 1993, he wasappointed to the Executive Committee with responsibility forLatin America and international trading. He was appointed

CEO of Holcim Limited in 2002. He joined the board in 2006.


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M L Bhakta, Director

Mr. Bhakta is a senior partner of Messrs Kanga & Company, aleading firm of advocates and solicitors in Mumbai. He hasvast experience in the legal field, especially in matters relatingto corporate law, banking and taxation. He was Chairman ofthe Taxation Law Standing Committee of LAW ASIA. He

joined the board in 1985.

Nasser Munjee, Director

A Masters degree holder from the London School ofEconomics, Mr. Munjee is a board member of a number ofcompanies. He has a deep interest in rural development,

housing finance and urban issues, specially the developmentof modern cities and humanitarian causes. He has beenawarded the Best Non-Executive Independent Director 2009award by The Asian Centre for Corporate Governance. He

joined the board in 2001.


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Rajendra P Chitale, Director

An eminent Chartered Accountant, Mr. Chitale is themanaging partner of M/s M.P. Chitale & Associates. He hasserved as a member of the Insurance Advisory Committee,the Company Law Advisory Committee and othercommittees of the Government of Maharashtra and theGovernment of India. He is on the board of several largecorporations. He joined the board in July 2002.

Shailesh Haribhakti, Director

Mr. Haribhakti Is the Executive Chairman of BDO ConsultingPrivate Ltd and the Managing Partner of Haribhakti & Co

Chartered Accountants. He is on the Board of Directors ofseveral private and listed companies. He has been awardedthe Best Non-Executive Independent Director 2007 award byThe Asian Centre for Corporate Governance. He joined the

Board in May 2006.


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Omkar Goswami, Director

A professional economist, Dr. Goswami has taught andresearched economics for nearly two decades. In 1997, hemoved away from formal academics to become the editor ofBusiness India, one of Indias prestigious business magazines.He has served as the Chief Economist of the Confederation ofIndian Industry and is on the Board of several largecompanies. He joined the Board in July 2006.

Naresh Chandra, Director

A Padma Vibhushan awardee in 2007, Mr. Naresh Chandra isa postgraduate from the Allahabad University. He has held

several important positions within the Government of India,including Governor of the State of Gujarat and Indiasambassador to the United States. He is a Director on theBoard of ACC and several other reputed companies. He

joined the board in July 2008.


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Onne van der Weijde, Managing Director

A Dutch national, Mr. Onne joined Holcim in the year 1996and after holding various positions, he was appointed

Director and General Manager for Holcim (India) Pvt. Ltd. inMarch 2005. He was the CFO of ACC between 2006 and 2008.He has a lot of experience of the cement industry. He joinedthe Board in January 2009.


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Mr. Onne van der Weijde, Managing Director Mr. B.L. Taparia, Company Secretary & Corporate

Sustainability Officer

Mr. Sanjeev Churiwala, CFO

Mr. Ghassan Broummana, Head - Techport Mr. S.N. Toshniwal - Business Head (East)

Mr. J.C. Toshniwal - Business Head (North)

Mr. Ajay Kapur - Business Head (West & South)

Ms. Meenakshi Narain - Joint President (HR)

Mr. Shakti Arora, Head - Central Purchase Officer


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Delighted Customers:

My actions speak more about my company than a mereadvertisement.My function, however remote to the customer, ultimatelyleads to satisfying him. My connection to him is like God.

I may not see it. But, it exists.

Inspired Employees:I don't need orders to trust my colleagues.

I don't need orders to seek challenges.Or to meet them either.That, I know, is I CAN.

E li h d


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Enlightened partners:I will build enduring relationships with my dealers andsuppliers.The full benefit of our engagement with dealers and suppliers

will only come when they act as partners in satisfying thecustomer. I will, therefore, create win-win associationsbetween my dealers, suppliers, my company and mycustomers.

Energised Society:I will energise, involve and enable people around me torealize their potential. The communities around me are a partof my support system. A small improvement in their life willhave a multiplier effect for everyone.

Cleaner Environment - Pollution control:

I will leave a cleaner planet for my children. For this, I dontneed the rule book.


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Cleaner Environment

natural resources:I will use Nature responsibly and conserve its resources.If I allow Nature to replenish itself, it will provide me with apermanent livelihood. And, the benefit will extend even to

my childrens children.

Safety:

I will adopt zero harm practices at work and everywhere.

I never forget that my familys future depends on my safety.


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The management of Gujarat Ambuja decided some objectivesto become topper in the market. And the objectives are:

Better quality then other company.

Fair returns to share holders. A higher productivity to cover maximum market.

Maximum customer satisfaction.

Clean & healthy Environment for employees growth.

Try to lower pollution to fulfilment of social responsibilities


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Captive Infrastructure: Ports & Power Plants Presence in the growing markets of North & West

Retail Focus Premium pricing

Largest Exporter of cement

35% Cement transport by sea - Cheapest Mode One of the Lowest Cost Cement Producer


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Emphasis was on Quality High Advertisement for BRANDING-3 times than ACC at

one time

Improvement in Packaging by information provided by

suppliers Extensive & primarily exclusive distribution network-Over

6,000 dealers and 20,000 retailers

Promotion through seminar, workshops for masons,

architects, contractors etc by providing info on use ofAMBUJA CEMENT

Advertising and Publicity campaign


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Unlocking Potential of Employees Employed Experienced people from other companies

More stress was on enthusiasm not on experience

Motivating factor was empowerment to perform than

monetary factor Free access to senior official including VP

Communication Meetings on regular basis to discuss and sortout grievances

Preference to existing employees for higher position


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Starting with a plant with a capacity of 0.7 MT in Gujarat,GACL is now having plants at different place with total 16.5MT. It has adopted organic growth. To participate in thegrowth of the cement industry, the company has plannedcapital expenditure programmes aggregating to about Rs 3500crore. This would help the company maintain its market sharegoing forward.


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The company is setting up new clinker capacity at Bhataparain Chattisgarh and Rauri in Himachal Pradesh, each having acapacity of 2.2 million tonnes per annum. The project work isprogressing well. The clinker unit at Bhatapara is slated to becommissioned in mid 2009 while the unit in Rauri is expectedto go on stream in the second half of 2009.


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Particulars Values Year 2011 Year 2010 Growth

Sales Volume Cement

Million tones 20.91 20.00 4.5%

Net Sales Rs. In Crore 8,515 7,390 15.2%

EBITDA Rs. In Crore 1,994 1,951 2.2%

Profit BeforeTax andExceptional

Items

Rs. In Crore 1,727 1,635 5.6%

Net Profit Rs. In Crore 1,229 1,264 -2.8%


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Ambuja Cement - Amit Malhotra

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