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AMBUJA CEMENT. By- Sapana Agarwal Shweta Karan Rishal Bhide. Cement Industry. Cement Industry – An Overview. India is the world’s second largest producer of cement after China with industry capacity of over 200 million tonnes (MT). Growth by 9 to 10% for the current financial year.
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AMBUJA CEMENT By- Sapana Agarwal Shweta Karan Rishal Bhide
Cement Industry – An Overview • India is the world’s second largest producer of cement after China with industry capacity of over 200 million tonnes (MT). • Growth by 9 to 10% for the current financial year. • India’s cement consumption grew 9.6% yoy. • Cement production could rise to 236.16 MT in FY11 and touch 262.61 MT in FY12. • There is a total number of 134 large cement plants with an installed capacity of 173.08 MT and more than 350 small cement plants with an estimated capacity of 11.10 MT operating in India presently
Major Players of Cement Industry in India • The Associated Cement Companies Limited (ACC) • Ambuja Cements Limited • UltraTech CemCo Ltd. • Grasim Industries Limited • The India Cements Limited • Century Textiles and Industries Limited • Jai Prakash Industries • Birla Corp Limited • Jaiprakash Industries Limited • Lafarge • Others
AMBUJACEMENT LIMITED • Ambuja Cements was set up in 1986. • In the last decade the company has grown tenfold. • The total cement capacity of the company is 18.5 MT. • Net Profit Rs. crore318 for Qtr. Jul – Sep. 2009 whereas Qtr. Jul – Sep 2008 Net Profit Rs. crore250. • Over 40% of the production cost of cement is power. • Cheaper and higher quality coal from South Africa & furnace oil from the Middle East.
Annual Capacity • Market Cap. : Rs. 12749.06(Cr)
Value Chain Analysis • Logistics • Marketing and Sales • Human Resources Management • Technological Development • Procurement
Business Level Strategies • Target niche segment. • Lowest cost producer.
Corporate Level Strategies • Related Diversification. • Vertical Integration.
M&A’s • Gujarat Ambuja's acquisition of Modi Cement ($44 per tonne) in 1997. • Gujarat Ambuja's acquisition of DLF in 1999 ($108) • Gujarat Ambuja acquired a 14.4-per cent stake in ACC from the Tata group in 1999 at Rs 370 per share. • Holcim buys a 67-per cent stake in Ambuja Cement India in 2005 for 810million(about 3500crore).