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ORGANISATIONAL STUDY

ULTRA TECH
CEMENT
BY:
RAUNAK DOSHI
1ST MBA ‘M’
HISTORY
 The Aditya Birla Group is the 11th largest cement
producer in the world and the seventh largest in
Asia.
 Incorporated on 24 August 2000 as L&T Cement
Limited.
 Cement business of Larsen & Toubro Limited
demerged and vested in company in 2004.
 Grasim acquired management control in July
2004.
 Together with Grasim, one of the largest cement
producers in India.
 Name changed to UltraTech Cement Limited with
effect from 14 October 2004.
 Narmada Cement Company Limited amalgamated
with UltraTech in May 2006.
PRODUCTS OFFERED
Ordinary Portland cement
 Clinker 90.50%
 Gypsum 4.00%
 Fly ash 5.50%

Portland blast furnace slag cement


 Clinker 70%
 Gypsum 6%
 Slag (Blast Furnace) 24%
Portland Pozzolana cement
 Clinker 66%

 Gypsum 4%

 Fly ash 30%

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

 To be a premium global
conglomerate with a clear focus on
each business.
 Customerization

 Quality consistency

 Product range

 Cost competitiveness

 Employee empowerment
STRATEGIES

 Cost efficiency
 Customer retention
 Business redefinition ORGANISATIONAL
 Innovation strategies
 Financial strategy STRUCTURE
POLICIES AND PROCEDURES FOLLOWED
 HR POLICIES OF CEMENT BUSINESS
– Designations
– Perks chart
– Allowances
– Perquisites
– Reimbursements
– Travel
– Other policies
– Retrial
 GROUP POLICIES
– car policy for domestic units
– Accident and medical insurance coverage
– Gratuity
 GENERAL POLICIES
– Sexual harassment
– Internal recruitment scheme
– Re employment of ex employee
– Retirement age of management cadre
– Employment of near relation
– Dealing in shares of group companies
 CODE OF CONDUCT
Various Departments
 Finance Department
 Marketing Department

 Human Resource Department

 Research & Development


Department
 Supply Chain Department
SWOT analysis of the organisation
STRENGTHS: Double digit growth rate
 Cement demand has grown in tandem with strong
economic growth; derived from:
 -Growth in housing sector (over 30%) key demand driver;
 -Infrastructure projects like ports, airports, power projects,
dam and irrigation projects
 -National Highway Development Program
 -Bharat Nirman Yojana for rural infrastructure
 -Rise in industrial projects
 -Export potential also demand driver
 Capacity utilization over 90%

WEAKNESS: Low value commodity


 Cement Industry is highly fragmented
 Industry is also highly regionalized
 Low – value commodity makes transportation over long
distances un-economical
OPPORTUNITIES: Demand–supply gap
 Substantially lower per capita cement consumption as
compared to developing countries (1/3 rd of world
average) Per capita cement consumption in India is 82 kgs
against a global average of 255 kgs and Asian average of
200 kgs.
 Additional capacity of 20 million tons per annum will be
required to match the demand
 Limited green field capacity addition in pipeline for next two
years, leading to favorable demand – supply scenario

THREATS: Rising input costs


 Government intervention to adjust cement prices
 Possibility of over bunching of capacities in the long term as
some of the players have already announced new capacities
 Transportation cost is scaling high; bottleneck due to
loading restrictions
 Coal prices climbing up; industry players say current
shortage of coal in the country is estimated to be over 10
million tones.
Product promotional measure
 ADVERTISING

 PUBLIC RELATION
 PERSONAL SELLING

 SALES PROMOTIONS

 DIRECT MARKETING
MANPOWER PLANNING:
INTERNAL SOURCES EXTERNAL SOURCES
 Present employees  Campus Recruitment

 Retired employees  Private employment

 Dependent of present consultant


 Employee Referrals  Data Banks

 Trade Unions  Casual Applicants

 Walk-ins

 Head Hunting

 Mergers & Acquisitions

 E-Recruitment
Future plans for growth of the
organization.
 Aspire to become the top manufacturers in
cement and concrete industry.
 To become the leaders in the cement
market.
 Plans to bring in value added programs
and services for construction industry.
 PAN India operations.
 Continuously to look into and improve the
value of stake holders.
-S.V. Patil; Senior Vice-President
Marketing(South)
THANK YOU