Dr.
Moonje Institute of Management and
Computer Studies, Nashik
Subject :-
ENTERPRISE ANALYSIS :-DESK REPORT
Name of Organization:-
AMBUJA CEMENTS LIMITED
SUBMITTED BY- GAIDED BY –
KOMAL DHODARE MR. NITIN CHOUDARI SIR
SAGAR DOKHE
AMRUTA DIXIT
PRAJAKTA DHATRAK
AISHWARYA DHESHPANDE
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Address of Organization:-
REGISTERED OFFICE
Registered Office:
Kodinar
At. P.O. Ambujanagar, Taluka Kodinar,
Dist. GirSomnath,
Gujarat - 362715
02795 - 237000
Corporate Office:-
Mumbai
Elegant Business Park, MIDC Cross Road 'B',
Off Andheri-Kurla [Link] (E),
Mumbai 400059
022 – 40667000
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Enterprise History & Background
Year Of Establishment: Sets up its first cement manufacturing plant at
Ambujanagar, Gujarat in 1983
Type of Company: cement producing company
Original & Current Promoters:-
1. Holderind Investments Ltd
2. Holcim India Pvt Ltd
Business Group (Name) :- AMBUJA CEMENTS LTD.
Vision:- To be the most sustainable and competitive company in our industry.
Mission: Create Value for all
Delighted Customers
Inspired Employees
Enlightened Partners
Energized Society
Loyal Shareholders
Healthy Environment
Philosophy: The primary role of the Board is to protect the interest and enhance
value for all the stakeholders. They conducts overall strategic supervision and
control by setting the goals &targets, policies, reporting mechanisms,
accountability and decision making process to be followed.
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Name of Chairman:-
1. Suresh Kumar Neotia ,Founder, Chairman
2. Narotam Sekhsaria,Co-Founder, Chairman
Name of MD&CEO:-
1. Ajay Kapur
Name of The members of Board of Directors & Profiles
of key personnel :-
Board of Directors
NS Sekhsaria
Managing Director & CEO
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Ajay Kapur
Name of The members of Board Profiles
of Directors of key personnel
Mr. N. S. Sekhsaria Non-Executive Chairman, Non-Independent
Mr. Nasser Munjee
Mr. RajendraChitale
Mr. ShaileshHaribhakti Non-Executive, Independent Director
Dr. Omkar Goswami
Mr. HaigreveKhaitan
Mr. Ajay Kapur Executive, Non-Independent, Managing Director
& CEO
Leader’s message :-
Policies & Procedures:-
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We act with integrity at all times; we are honest and trustworthy.
We demonstrate respect for our fellow employees, customers and business
partners; we listen and seek solutions.
We are open minded team players; we foster collaboration while maintaining
individual accountability.
We value new ideas that serveour customers, the business and communities.
We are dedicated, committed and deliver on our promises.
We obey the law and comply with this Code
2. Organization:-
Organization Structure :-
Geographical Spread out
1. Unit :Ambuja Nagar ( interegeted ) Gujarat
[Link] :Bhatapara II ( I ) Chhatisgarh
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[Link]:Darlaghat ( I ) Himachal Pradesh
[Link]: Chandrapur ( I ) Maharashtra
[Link]: Rabriyawas( I ) Rajasthan
[Link]: Rauri( I ) Himachal Pradesh
[Link]: Farakka(Grinding) West Bengal
[Link]: Magdalla(G) Gujarat
9. Unit: Nalagarh(G) Himachal Pradesh
[Link]: Roorkee (G) Uttarakhand
[Link]: Ropar(G) Punjab
[Link]: Bhatinda (G) Punjab
[Link]: Dadri (G) Uttar Pradesh
Current Head Quarter: Mumbai
Type of organization (Manufacturing/ Service) : Manufacturing
Any other Collaboration: Technical collaboration with Krupp Polysius,
Germany, Bakau Wolf and Fuller KCP.
Any Merger / Acquisition (history if any):It is a part of the global conglomerate
Holcim, one of the world’s leading suppliers of cement and aggregates.
Successes and milestones:
Conserving water more than 18 million liters water
Replacing conventional clay bricks with more than 100 millioneco-
friendly bricks
Setting up 27 Ambuja Knowledge centers throughout the country.
Training & Development:
Training & certification of more than 10000 masons
Training & certification of more than 5000 contractors
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Market
Customer Type (B2B/B2C etc) :Business to Business
Customer Segment: Technical Services function promotes Ambuja brand by creating differentiated
engagement with customers & influencers through expert advice and value added services across the
customer segments.
Customer Product:Ambuja Cement is committed to make high strength cement that would enable
there customers to builds strong and durable structures. To achieve this, the finest quality of
limestone is used. But there people have also used one more ingredient – Innovation.
Product Line:
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Major product brand : CEMENT
Market Share – Nationally :
The Indian cement industry is the 2nd largest market after China, accounting for
about 8% of the total global production.
Cement is a cyclical commodity with a high correlation with GDP. The housing
sector is the biggest demand driver of cement, accounting for about two-thirds of
the total consumption. The other major consumers of cement include
infrastructure, commercial construction and industrial construction.
Advertising Agency:“ Publicis ”
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Advertising Punch line& Slogan:Giant compressive strength
Advertising Logo:
Financial
Tabulation or graphical representation of data from last five years for – Profitability:
YEAR Net Sales (in cr.) Net Profit (in cr.)
31-12-2012 8554.26 1228.86
31-12-2013 9730.30 1297.06
31-12-2014 9160.35 1294.57
31-12-2015 9978.12 1496.36
31-12-2016 9461.40 807.56
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9730.3 9978.12
9160.35 9461.4
10000
8554.26
9000
8000
7000
6000
5000
4000
3000
1228.86 1297.06 1294.57 1496.36
2000 807.56
1000
0
31-12-2012 31-12-2013 31-12-2014 31-12-2015 31-12-2016
NET SALES (in cr.) NET PROFIT (in cr.)
Revenues: 76,378.1 million (US$1.1 billion)2010
Market Capitalization: 509.02B
Listing Status: Listed
Stock Exchange:
BSE :256.70^
NSE:-256.20^
Share Price – Face Value:Rs.2.00
Current Market Value: Rs.256.20
PE Ratio:Rs.27.76
Shareholding Pattern:
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Holder’s Name % Share Holding
Promoters 61.62%
Foreign Institutions 20.26%
Financial Institutions 8.65%
General Public 4.73%
Others 2.37%
NBanksMutualFunds 2.33%
CentralGovt 0.04%
Governance
Involvement in Scam :The sale of Ambuja Cements was banned in Jammu and Kashmir
on the basis of complaints about variable rates and cement bags being less in weight in
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the state. After the initial enquiry, the department found less quantity of cement in bags
and defunct weighing machines. Consequently all the operations of the company were
stopped in the state. While inspecting the company’s authorized dealers it was, detected
that mandatory declarations like MRP, packing date, consumer helpline number,
complete address of manufacturer with PIN etc were not prominent and legible on 50 kg
cement bags as required under packaged commodity rules.
CRISIL Rating :
Rating Outstanding as on 03-Oct-2016
Industry : Construction Material
InstrumentCategory Rating RatingOutlook
Long Term CRISIL AAA Stable
Short Term CRISIL A1+
Award Won :
Ambuja Cement Foundation - Received National Award For " Excellent Water
Management Initiatives" and Excellence In Water Management
Ambuja Cements Ltd - The Best Among Equals Awarded "Best Brand" By Zee
Business Good Home Awards.
Ambuja Received CII Sustainability Award 2012 (Commendation Certificate for
Significant Achievement on Journey towards Sustainable Development)
Presented By Hon'blePresident Pranab Mukherjee.
CSR Activity Performed:
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The areas of focus cover issues that affect locations and are often common to
other rural areas too. Prior to the identification of these areas, they undertake
Participatory Rural Appraisals and close interaction with the people.
Water Resource Management
Agro Based Livelihood
Skill & Entrepreneurship Development Institute
Healthcare
Education
Women's Empowerment
Infrastructure
Disaster Relief
Other Projects
The Ambuja Cement Foundation is active in 12 of India’s major states where
there plants are present.
The oldest location where the first activity was started is Kodinar in Gujarat.
Executive Summary
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The Indian cement industry is the 2nd largest market after China, accounting for about 8% of the
total global production. It had a total cement manufacturing capacity of 375-390 million tonnes (MT) as
of financial year ended 2014-15. Cement is a cyclical commodity with a high correlation with GDP. The
housing sector is the biggest demand driver of cement, accounting for about two-thirds of the total
consumption. The other major consumers of cement include infrastructure, commercial construction and
industrial construction.
The cement industry capacity doubled in the last decade, with about 70 million tonnes added in
the last three years alone. Though India has witnessed sustained growth in cement consumption since
2001, the growth has slowed down in the last 3-4 years. This has been on account of a slump in housing,
infrastructure and commercial sector. The gap in the pace between capacity additions and actual demand
has led to a excess capacity situation in the industry, resulting in sub-optimal utilisation rates. Moreover,
the per capita consumption of cement in India still remains substantially low at about 195 kg when
compared with the world average which stands at about 520 kg. This underlines the tremendous scope
for growth in the Indian cement industry in the long term.
Cement, being a bulk commodity, is a freight intensive industry and transporting it over long
distances can prove to be uneconomical. This has resulted in cement being largely a regional play with
the industry divided into five main regions viz. north, south, west, east and the central region. The
Southern region of India has the highest installed capacity, accounting for about one-third of the
country's total installed cement [Link] demand is closely linked to the overall economic
growth, particularly the housing and infrastructure sector. The Modi government's thrust on housing and
infrastructure development should augur well for cement demand. The crash in the global crude oil
prices and other commodities should help cement companies to reign over cost pressures and improve
profitability of the sector.
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