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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 million tonnes.
Its plants are some of the most efficient in the world. With environment protection measures that are on par
with the finest in the developed world.
The company's most distinctive attribute, however, is its approach to the business. Ambuja follows a
unique homegrown philosophy of giving people the authority to set their own targets, and the freedom to
achieve their goals. This simple vision has created an environment where there are no limits to excellence,
no limits to efficiency. And has proved to be a powerful engine of growth for the company.
As a result, Ambuja is the most profitable cement company in India, and one of the lowest cost producer of
cement in the world.
Achievement
In essence, cement is a simple business. Unlike other industries it does not suffer rapid technological
obsolescence or shifting consumer trends. Therefore, it constantly attracts new investments. Which results
in surplus capacity. This means only the very efficient players can prosper.
Our people recognize this. And their efforts to constantly raise efficiency has not only raised the bar at
Ambuja. But across the industry as well.
do so. Its also the first to receive the ISO 9002 quality certification.
Our people realized that the only way to speed up transportation was a completely different approach. The
result: a bulk transporting system via the sea. Making us the first company to introduce the concept of bulk
acl-speakup@ambujacement.com
Our strengths
People
The kiln at our Ambujanagar plant is 20 years old. Yet it keeps increasing productivity year after year.
Many would consider this an impossible task. Yet, our people continue to achieve ever higher efficiency
and productivity, not just at Ambujanagar, but at all our other plants.
In Himachal, for instance, they've managed to push up production and bring down power costs. At a plant
that was already functioning above capacity. At the same plant they've managed to cut stabilizing time (a
critical task in a cement plant) from upto 18 months to a mere 3 months.
At our cement shipping terminals in Gujarat, with a few minor modifications, they've succeeded in
exporting clinker, and importing higher quality and far cheaper coal and furnace oil for our captive power
plants.
At our Mumbai terminal meanwhile, they've increased the handling capacity to 100,000 tonnes as against
the terminals stated capacity of 60, 000 tonnes. With no additional capital expenditure.
In the last decade they've managed to keep our power bills to virtually the same amounts they were in 1989.
All of which proves once again, that an asset is worth only as much as the people who use it.
Infrastructure
It quickly became clear to us that if we were to run a profitable company, wed need to keep power costs to
the minimum. So we focused our efforts on improving efficiency at our kilns to get more output for less
power.
Next we set up a captive power plant at a substantially lower cost than the national grid. We sourced a
cheaper and higher quality coal from South Africa. And a better furnace oil from the Middle East.
The result is that today were in a position to sell our excess power to the local state government.
Our sea-borne bulk cement transportation facilities meanwhile has brought many coastal markets within
the easy reach. It has also made Ambuja India's largest exporter of cement consistently for the last five
years.
CEMENT PLANTS
Balance sheet 31st dec 2009
Schedule Rs. in As on As on
Crores 31.12.2009 Rs. 31.12.2008
in Crores Rs. in
Crores
SOURCES OF
FUNDS
Shareholder's Funds
6,470.90 5,672.87
Loan Funds
Unsecured Loans D
65.70 - 188.67
165.70 288.67
APPLICATIONS
OF FUNDS
Fixed Assets E
Current Assets,
Loan and Advances
Inventories G 638.24 938.72
1,979.34 - 2,339.45
Less Current L
Liabilities and
Provisions
Liabilities 1,067.05 1,003.24
1,741.09 1,473.80
(Rs. Crores)
2004 2005 -06
2007 2008 2009
- (18
05 Months)
Sales 2606 6286 5705 6235 7077
Operating 799 2247 2239 1954 2122
Profit
Cash Profit 714 2168 2163 1922 2100
Profit 519 1842** 2712** 1970** 1803
before Tax
Profit after 468 1503 1769 1402 1218
Tax
Gross Block 3827 5177 5928 7654 8939
Net Worth 2172 3484 4655 5669 6468
Debt 1127 865 330 289 166
Cash EPS 5.28 14.29 14.26 12.62 13.78
(Rs.)
EPS (Rs.) 3.46 10.09 11.61 9.21 7.99
Dividend 90* 165 175 110 120
(%)
Capacity- 13.3 16.30 18.50 22.00 22.00
Million 0
Tons
Production- 12.8 22.63 16.88 17.75 18.83
Million 0
Tons
Note:
Introduction
The company had won various awards for management excellence, quality, and
environment management. Ever since its inception, the company had believed in doing
things in innovative and unconventional ways. GACL's modern plants, large kilns, high
degree of automation, low manpower costs, low power tariff and low fuel costs had
helped it to become the cost leader in the industry.
GACL was established as Ambuja Cements Private Ltd. (ACPL) in 1981 by Narotam
Satyanarayan Sekhsaria (Sekhsaria), a businessman from Gujarat in western India.
Originally a cotton trader, Sekhsaria liked the cement business because of its stable
demand, lack of substitutes and limited competition. With the support of Gujarat
Industrial Investment Corporation (GIIC), Sekhsaria and his two partners, Suresh Neotia
and Vinod Neotia, set up APCL. Suresh Neotia was appointed Chairman while Sekhsaria
took charge as the Managing Director...
In 1996, GACL floated another subsidiary, Ceylon Ambuja Cements (Private) Ltd.,
through which it acquired a small company, Midigama Cement, in Sri Lanka. In 1996,
GACL set up its third plant at Ambuja Nagar, named Guj Line - II (capacity 1 mtpa).
GACL also established grinding and packing units at Ropar (Punjab) and Panvel
(Maharashtra). In 1997, GACL acquired Modi Cements' sick 1.4 mtpa plant at Raipur
(Madhya Pradesh) for Rs 1.66 billion. This plant was renamed Ambuja Cement Eastern
Ltd.
With 14 manufacturing units in India, ACC had a total capacity of over 11 mtpa. It was
one of the largest integrated cement companies in the world. In December 2001, GACL
began trial production at a new 2 mtpa plant in Chandrapur, Maharashtra, taking its total
capacity to 12.5 mtpa. In FY 2003, the company recorded a sales figure of Rs 2173 crores
and a PAT of Rs 293 crores...