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 Innovation strategies Financial strategy

ORGANISATIONAL 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 un-

OPPORTUNITIES: Demandsupply gap Demand



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. tones.

Product promotional measure

 ADVERTISING  PUBLIC

RELATION  PERSONAL SELLING  SALES PROMOTIONS  DIRECT MARKETING

MANPOWER PLANNING:
INTERNAL SOURCES  Present employees  Retired employees  Dependent of present  Employee Referrals  Trade Unions  Walk-ins Walk Head Hunting  Mergers & Acquisitions  E-Recruitment EXTERNAL SOURCES  Campus Recruitment  Private employment consultant  Data Banks  Casual Applicants

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 ViceMarketing(South)

THANK YOU