Toaz - Info Ambuja Report PR

A
Winter Training Report At
GUJARAT AMBUJA CEMENT LIMITED

Ambuja Nagar P.O.
Taluka Kodinar- 362715
District Junagadh
Gujarat.
Submitted toward the the partlal fulfilment for the award of Degree
In BACHELOR OF BUSINESS ADMINISTRATION OF
C.C.S. University Meerut
(2013 - 2016)
SUBMITTED BY
SUBODH
ROLL NO:- 6487516
Batch : (2013-2016)
UNDER THE SUPERVISION OF
(MR. BHARAT BHUSHAN SHARMA)
DEPARTMENT OF BBA
SHRI DRONACHARYA PGCOLLEGE,

DANKAUR,GREATER NOIDA
1 A report on Ambuja cement Ltd. Analysis of value chain

DECLARATION
I, the undersigned Miss KARISHMA A. NATHANI, a student of MBA part

II here by declare that the project work presented in this report is my own work &
has been carried out under the guidance of professor Subhash yadav of Narmada
college of management ,BHARUCH.
This work was not submitted previously to any university or any where else
for examination or for any other purpose.
Date :
Place : Kodinar
KARISHMA A. NATHANI

PREFACE
Education consists of two aspects theoretical and practical.
Theatrical aspects are covered during classroom sessions through group

discussions. Role playing, case studies , and presentation etc. To understand more deeply
the theatrical concepts, practical training in organization becomes essential for full-
fledged MBA course.
So being students of M.B.A we have to undergo practical training at any

organization as decided by the Institute or by own. We can say that practical knowledge is
the best experience for any student and hence practical training plays as much important
role as the theoretical study.
During this training program I have studied how the supply chain management is
done in GACL. What are the different departments that plays their role into it.
I have taken training at “GUJARAT AMBUJA CEMENT LIMITED” – Kodinar

for 2 months and gathered information.
The management of G.A.C.L. gave good response and help me in understanding

all the points. I am thankful to all the staff of G.A.C.L. to give me their valuable time.
ACKNOWLEDGEMENT
I am the student of management and hence, our institute insists on industrial visit
programm for the students during 2 years to increase the knowledge of students in
connection with the management, administration and other matters.
In this regard, I visited “GUJARAT AMBUJA CEMENT LIMITED” located at

Kodinar. I am very thankful to Mr. Kapoor (Personnel Manager) for granting me
permission to undergo the training Program. Moreover I am in debt of all the officers and
staff members of G.A.C.L. for fruitful guidance in their concerned field which not only
helped me to prepare this report but also to have a clear picture of functioning of each
department.
I specially acknowledge Mr. Mukherjee (S.P.O.), Mr. Sunil Kumar (Personnel

Assistant), Mr. M.P. Singh (Sales), Mr. Ripal Shah(Sales), Mr.Modi (Sales), Mr. Tripathi
(Port Division), Mr. Vedant mulani (BCT), Mr. K.k. javahar (BCT), Mr. Rama rao
(production),Mr. Dhokiya (librarian),Mr. Katare,Mr.firoz mithani(IT), r. Mishra (Packing
Division) and all other members of different departments
I am very thankful to “Mr.Joshi (HOD) who gave me an opportunity of M.B.A.

training program. I am also very thankful and we express our sense of gratitude towards
our learned professors for giving a valuable guidance regarding our practical
implementation of principles of management and administration in the industry.And Mr.
Yadav sir ( project guide) who guide me throughout the project.
I am finally thankful to my parents and my uncle Mr. Shivani who helped me

getting & completing this project.

Index
SR. PARTICULARS
PAGE NO.
NO.
1. EXECUTIVE SUMMERY
7
2. IDUSTRY HISTORY & RPOFILE
11
3. SERVICES AND PRODUCTS
8
4 BASICS OF STOCK MARKET
12
5 SHAREKHAN PROFILE
13
6. SHAREKHAN SERVICES IN DETAIL
31
6.1 DIFFERENT TYPES OF ACCOUNT
33
6.2 COMMODITY
37
6.3 MUTUAL FUND
40
6.4 PLATINUM CIRCLE
43
7.1 INTRODUCTION
55
7.2 ORGANISATION CHART
57
7.3 ACCOUNT OPPENING PROCESS
58
8 MARKETING
65
8.1 INTRODUCTION
65
8.2 MARKET SEGMENTATION
66
8.3 ADVERTIESMENT
66
8.4 COMPARISON WITH COMPETITORS
67
9 ON THE JOB TRAINING
75
9.1 OBJECTIVE
75
9.2 TARGET AND TASK
76

9.3 STRATEGY
76
9.4 LIMITATION
77
9.5 LEARNING
78
9.6 ACHIEVEMENT
79
10 CUSTOMER PROFILER SURVEY
80
11 RESEARCH METHODOLOGY
81
12 ANALYSIS AND INTERPRETATION
82
13 FINDINGS
99
14 CONCLUSION
100
15 SUGGESTION
101
16 BIBLIOGRAPHY 102
17 ANNEXURE
103

EXECUTIVE SUMMARY
Ambuja is an Old buzzword in Indian CEMENT market. With Strategic Alliance with
world’s largest cement manufacturer, HOLCIM a swiss base company acquires a strong
hold on its quality and know-how that is not second to any other cement manufacturing
company.
Ambuja is surging towards more and more innovations to offer nothing but the very best
and the latest CEMENT manufacturing technology to esteemed customers. Thus, Ambuja
is able to monitor the quality from the very beginning till the final product.
The manufacturing process at Ambuja is of paramount importance. The process uses

state-of-art production technology of the production management. Ambuja is actively
involved in environment protection and product design to assure consistent quality and
optimize the cost for its customers.
This project is a study of value chain analysis of GACL in Gujarat and to Find how
ambuja is creating value for its customer and Supply chain management system
comparison to know where does Ambuja stands in compare to other cement companies,
like Saurastra cement Ltd.
The study is Explorative one using Questionnaire and observation of plants and offices,
and is based on Primary data analysis and secondary data analysis. I have visited all the
departments of GACL as well as SCL to find out the value chain and supply chain
system.
The objectives of my research are Analysis of value chain system in ambuja cement ltd
and comparison of supply chain management system with SCL
Questionnaire is used by me as a tool for the survey. I have referred descriptive
Questions for the Questionnaire. The survey is conducted with all the departments head
in ACL as well as SCL. I have tabulated the data and of GACL & SCL for comparison.

The major things that I have found in this project are (a) regarding the effectiveness of
value chain system in GACL. (b) GACL Company is concentrating on consistent quality
delivered to customer and customers full satisfaction. (c)
My suggestions to the Ambuja Company are

Reasons for selecting cement industry for the winter
project
There is a great potential for cement industry in the resent trade. The
industry crossed 127 million tones of cement dispatches. Recording an impressive
8.5% growth over the previous year. Similarly the Indian economy as a whole grew
by 7% over and above the 8.5% growth that was achieved in 2004-2005.
I, believe this is the beginning of a new pattern of growth for the Indian
economy. The growth momentum is getting into a virtuous cycle. Wherein high
growth attracts large capital inflows, which in turn fuels further growth. We seem to
finally have all the ingredients in place for the country to achieve the status of a
global giant.
This year the monsoon too has been good across the country. Thee is now
a general consensus that the economy will grow by 7% in 2006-2007. This augurs
very well for the cement industry, as after a long spell we are seeing the economy
grow at 7% for 3 consecutive years. This has also brought the country much needed
global attention. Also, the Government has pledged to continue with reforms in
infrastructure and invest in rural development and boost the housing sector as well.
So, we can say about the indian economy as

 On a Consistent growth path
 Impetus on Service Sector
 Changing Demography - A Growth Driver
 Moved from being an Agrarian Economy to Services & Manufacturing Economy
Agrarian to a Service Economy

GDP Constituent 1997 - 98 2005 - 06
Agriculture 40 22
Manufacturing 35 27
Services 25 51
thus we can say,
Infrastructure & Housing
New Drivers of Economic Growth
Future Cement Scenario
 Indian economy expected to grow at - 7 to 8%

 Infrastructure development at an inflection point
 Housing to be the main driver of cement growth
 Cement Growth expected to be over 9%
 After a long gap demand would exceed supply
 Demand set to outstrip Supply

Reasons for selecting Gujarat Ambuja cement
company for the winter project
The BRAND Ambuja cement
Gujarat ambuja cement has been acquired by HOLCIM a swiss base

company so it’s a MNC now. Majority shares of ambuja has been purchased by
holcim so it has the managing power. In order to firmly grasp the opportunities
offered by the growing Indian economy, and realize the full potential of the
company, it have been looking at various options for strategic investment in
ACC. As it has purchased about a 14% stake in ACC in 1999 from the Tata group
of companies.
So ambuja have been partnered with Holcim to consolidate the presence in

ACC Holcim is the largest cement producing company in the world. And has been
looking to build a presence in India. And with a view to look for a large global
cement partner to further consolidate the presence in the Indian cement industry.
Therefore it’s a win-win situation for both the companies and their shareholders.
Salient Features of the Partnership
 Holcim Investments in India through ACIL only

 Access to Holcim’s best practices in areas such as waste heat recovery, use of
alternative fuels, human resources and Information technology
 Opening of new cement trading opportunities in Middle East and Indian Ocean
This partnership with holcim will not only help it further strengthen
relationship with ACC, but also give us access to many of Holcim’s strengths like
R&D, Fuel sourcing, information technology etc.
The partnership now give them about 35% equity stake in ACC,which is
the single largest cement producing company with an all-india presence. It will
now be able to consolidate ACC ‘s working in their financial results. Which until
now was not being done.

In terms of size & structure, this was a landmark transaction in corporate
India. As far as the performance of the Ambuja is considered it has been very
good it has sold 12.75 million tones of cement during the year, a growth of 22%.
The company made a consolidated operating profit of Rs. 910 crore as against Rs.
710 crore in the previous year an increase of 28 %.
The company always continue to ensure that the efficiency levels are the
highest in the industry, even as they keep input costs in check. I have no doubt
that their spirit and passion will continue to keep them far ahead of the
competition. With virtually no new capacities on the anvil and demand set to
increase.
I believe that the cement industry is always the mirror of a growing economy.
Growth is never a challenge, but to keep adding value along with growth is a
challenge. Growth With A Sustainable Business Model
In such a situation how the company is managing the supply chain?

How thequality grade cement is manufactured with competition price constraint?
And.how efficiently it distributes the final product cement to the final buyer is
very interesting and worth studying that is why I have selected the cement
industry and specifically the Ambuja cement compaby for the research project .
Industry history and profile
Man is very ambitious being from the very beginning he has always liked to
innovate & make the things more possible & more comfortable. Firstly he used to stay in
hots made up of straws & mod, then of bricks & later of cement. But then also he didn’t
stopped from there he keep on going more better good, than letter & best out of it.
Cement has been amongst the major industries in India there is now at throat competition
in this stream too. For diverting more people, different types & varieties of cement are
available.
Cement is considered to be the basic building material today in construction

industry. In 1757 AD, chemical engineer JOHNS SMEATON discovered that by mixing
of lime and clay, the resulting product process the property of hydraulicity. This was the
discovery of cement. In 1807 AD French chemist Vicart followed Smeaton’s observation
to its natural and logical conclusion in making a cement by burning together finally
pulverized chalk and clay, after having mixed them into paste.
In India, manufacturing of cement was first started in Madras in 1904 first three
companies were started in 19912-1913.when the plans started there were 21 factories
with an annual capacity of 328 million tones.
The real impetus was provided when partial decontrol was announced in 1982.
through this policy all existing cement industry units were required to give up 66.67% of
their installed capacity as levy at controlled price. The most important objective of
decontrol was to eliminate black-marketing and bring down the price in the free market.it
was in follow through that the industry was fully controlled in 1989. in the last decade of
90s cement capacity increased by more than twice. The industry was de-licensed in 1991,
which augmented its production in the very first year.
INDIAN CEMENT INDUSTRY
India is today world’s second largest cement producing country after

china. Spread across the length and breath of the country, there are about 60 cement
companies with 134major plants and an installed capacity of about 147 million tones.
Besides, there are 60 surviving tiny and mini cement plant with a capacity of 6.3 million
tones.
I n India, the per capita cement consumption is abysmally low at 99 kgs as
against a world average of 255 kgs and asian average of 200 kgs. These figures indicate
good potential for growth of the industry. 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.
Contribution of cement industry to the

whole economy

The Indian cement industry plays a key role in the national economy,generating
substantial revenue for the state and central govt. It is the third highest contribution in
terms of excise duty of over Rs. 3,500 crores a year. Sales to state Govt. Royalties ,octroi
And the other cesses add another 1500 crore the industry employ a work force of over of
1.5 lakh persons and supports a further complement of 12 lakh people
engaged indirectly.
The industry crossed 127 million tones of cement dispatched, recording an

impressinve 8.5 % growth over the previous year. similarly Indian economy as a whole
grew by 7%, over and above the 8.5% growth that was achieved in 2003-04. this is the
beginning of a new economy of growth for the Indian economy the growth momentum is
getting into a virtous cycle. Wherein high growth attracts large capital inflows,which in
turn fuels further growth. Government has pledged to continue with reforms in
infrastructure and invest in rural development and boost the housing sector as well.
As the infrastructure development is the best measure of country’s Development Indian

Government is going now for many infrastructural project which proves that Cement
industry is booming now a days

Company history
The famous marvadi, sekhsaria group had started the company at Kodinar under
the title GUJARAT AMBUJA CEMENT LTD in 1983. Since then till now, the company
has gathered great frame under this name due to its ability and performance.
G.A.C.L. is considered to be the company in cement industry in Gujarat. The

world wide poll conducted by “Asia Money” in January 1998 has rent the company
among the top 4 for best relation with the investor and among the 10 best managed
companies in India. The company covers a wide area at vadnagar 10KM away from
Kodinar which is known as Ambuja Nagar.
G.A.C.L. was initially being planned to setup near Mahuwa in Bhavanagar

district. The entire primaries were done. But due to the non cooperative attitude and legal
oppose by villagers, the plan was changed.
Then the Sekhsaria group decided to setup G.A.C.L. at Kodinar. With the
promotion by Gujarat industrial and Investment Corporation limited, the company lay its
foundation in 1983 at vadnagar in Kodinar. The entire plant design and technology had
been supplied by Krupp Polysiusag West Germany. Company has entered into agreement
with Onada Engineering and consulting company limited at Japan.
G.E.B. granted 20MVA power for the plants and a double circuit 132KVA feeder
with the commencement of construction. The railway service appointed siding from
Kodinar to vadnagar. All the basic procedures were completed by august 1986 while
cement production started in September 1986.
People of ambuja have achieved yet a another milestone by putting up a 40MW

power plant in just 8 months which generates up to 58MW power sufficient to cater the
entire need of all the three cement plants. Horticulture department is there in G.A.C.L.
which looks after 64 villages.
Ambuja produces approx 50.49 lakh tones of cement yearly without causing any
harm to the environment. It has received the award as environment pollution free
company. The company tries to provide maximum facility to its worker. They all
collectively work seeking the progress of the company.
The unit insists in quality of work and quality of system. It aims to achieve
highest place and excellence among the total manufacturing companies. It provides a
pollution free and clean environment by adopting latest technological advancements and
judicious use of human resources.
Since then all the plants continued to run efficiently at 100% capacity utilization.
Gradually the development of 2 more projects so that Gujarat Ambuja line 1& 2 was
done.

Today, we can say that the company has spread its branches almost all over India
by establishing their units at the following places:-
 Ambuja Nagar - Kodinar(Guj)

Gaj ambuja plant
Gaj ambuja line – 2
Ambuja palnt
 Darlaghat - Solan
Him ambuja (himachal)
 Ropar - cement ambuja
r. repnagar
Punjab
 Raipur - Madhaya Pradesh
The company at present has got jetties at MulDwaraka neat Kodinar, Surat,
Magdalla, and at panvel (Mumbai) as well as seven ships under its ownership.
Ambuja cement eastern limited (formally Modi Cement limited) has become a
subsidiary of the company. G.A.C.L. has got various subsidiary companies viz. Concrete
Investment Ltd, IndoNippo Special Cements Ltd, Ganpati Greenfields Ltd, Home Trust
Housing Finance Company Limited, Cement Ambuja International Ltd, Mauritius and
Midigama Cement Ltd, Srilanka and many others.
The cement industry continues to face challenges on account of surplus capacity

and ever rising input cost. Despite all the economic slowdown adverse external
environment and heavy increase in cost of inputs, the company has still maintained its
position.
Ambuja cement continues to remain the brand of first choice in all its major
markets. The future provides positive signals for the industry.
The following shown is the map of the Gujarat Ambuja Network.

CONTRIBUTION OF THE UNIT TO THE INDUSTRY
GACL, since its beginning in 1986 as a large scale unit has recorded good
performance with significant improvement in products, quality and profit.
It provides employment to nearly 950 people and also provide indirect

employment to large number of people in froms of transporter and retailers etc. . Before
the commencement of GACL, Kodinar was considered to be a village but now due to the
company’s effort, Kodinar even has become well known. GACL caries out various
activities to bring up the condition of Kodinar.
The company is having top level position in manufacturing companies. This

unit is really helpful in the indigenous growth of the company. The location of the unit is
to helpful in the growth of the company. On the other hand the amicable and harmonious
relationship between the managers and workers also support the progress of the company.
The strong focus on constant quality improvement has paid handsome dividend
and the division products are today accepted as premium products in domestic as well as
international market.
It has planted over 1,00,000 plants in ambuja nagar. GACL recorded zero (0)
pollution level.

Company Profile
Name & address of the unit : Gujarat ambuja cement ltd.

Ambujanagar.
Taluka : kodinar
Dist : junagadh
Gujarat –362 620
Year Of Establishment : September 1986
Mission of the company : To strive for an environment beyond

compliance. To adopt environmentally
sound technologies and management
practices for optimum utilization and
conservation of natural resources.
Vision of the company : Give a man orders and he’ll do the task
reasonably well, but let him set his own
targets,give him freedom and authority,and
his task becomes a personal mission : “I
CAN” (It is constant source of motivation
for their people)
Belief of the company : Transparency,system and controls are

essential factors in the success and growth
of the company.
Investment : In September 1986 Rs.86 crores.
Promoters Of The Company : Mr. Narotham Sekhsaria

Mr. Suresh Neotia
Auditors : M/s Dalal & Shah.

M/s Chaturvedi & Co.
M/s P.M.Nanabhoy & Co.
Bankers : Bank Of India.

Bank Of Baroda.
Dena Bank.
ANZ Grindlays Bank.
Punjab National Bank.
The Hong Kong And Shanghai
Banking Co. Ltd (HSBC).
Credit Lyonnais.
Registered office : Ambuja nagar

Kodinar
Corporate office : Nariman point
Mumbai – 400 021.
Form of the organization : Private company ltd.
Production process used : Continuous production process technology
Production technology provider : KRUPY pulsates,A.B. Germany and

Kuchting has with onida engineering and
consulting co.ltd-japan
Production capacity : Ambuja plant : 4500 TPD

Gaj ambuja-1 : 4500 TPA
Gaj ambuja – 2 : 3750 TPA
Competitors
India’s top 10 cement companies:
1. Ultratech Increased revenue from cement

2. ACC strongest cement company
3. GRACIM Consolidating cement business
4. GUJARAT AMBUJA Setting new benchmark
5. INDIA CEMENTS Market leader in south
6. B.K. BIRLA GROUP Entry in cement rewarding
7. MADRAS CEMENT Financially sound company
8. LAFARGE INDIA First cement MNC in India
9. JAYPEE CEMENT Pride of Madhya pradesh
10. BIRLA CORP. Cement becomes main stay
11. CCI Welcoming new owner
Future Outlook
In line with the company's vision to become the leader in Indian cement industry, GACL
had been pursuing a combination of strategies like strategic alliances, capacity
expansion,new plants, and aggressive takeovers. The company had set up a two million
ton Greenfield cement unit in Maharashtra at an investment of Rs. 500 crores...
SWOT analysis
Strength
 Lower energy cost due to imported calorific value coal and use of non
conventional fuels.

 Lower transportation cost due to increased transport through sea router fro bulk
shipping.
 Very high Brand identity.
 Excellent innovation engineering and technological skill useful for operating
excellence.
 Very less department on government for coal and power.
 Processing own jetty and ships useful for timely and cheap transport
 Having major share of Holcim so can take advantage of being MNC.
 Excellent management team to cope with changing environment.
 The supply chain management system in the ACL is quite focused and good.
Weakness :
 Very limited fragmentation of plant, which avoid its presence in very sub regional
market.
 Still to span more geographically with compare to competetor.
Opportunity :
 Higher agriculture production may result into higher purchasing power,which will
increase demand.
 Stability of govermnet may result into higher FDI inflow which will give rise to
MNC’s entry in India, which would require operations in India. Thus large
infrastructure projects and related requirements of housing and accommodation
will boost cement sales.
 New product usage of RMC(ready mix concrete would be the demand.
Threat
 Threates from the economic cycle i.e. recession or growth
 Change in government policies in term of coal,diesel,raw material and
transport.
 Exchange rate fluctuation having direct effect on bottom line as wellas on
export.
 Capacity expansion by the competition which will lead to the surplus of the
cement.

Achievements
Environment protection measure that conform to the worlds best
The pollution levels at all our cement plants are even lower than the rigorous Swiss
standards of 100 mg/NM3. The air is so clean that a rose garden flourishes right next to
the main plant.
Benchmarking quality standards for the industry

Ambuja has received the highest quality award - the National Quality Award. The only
cement company to do so. Its also the first to receive the ISO 9002 quality certification.
Reinventing cement transportation

Almost 90% of cement in India travels by rail or road. And in bags.
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 cement movement by sea in India.
National Award for commitment to quality by the Prime Minister of India.
National Award for outstanding pollution control by the Prime Minister of India.
ISO 9002 Quality Certification.

ISO 14000 Certification for environmental systems.
Best Award for highest exports by CAPEXIL.
Economic Times - Harvard Business School Association Award for corporate
excellence
The institute of cost & works accountants of India, a professional body has given the
national award (certificate of merit ) “Excellence in cost management 2004” in the
private sector.
PRESS RELEASE
April 16, 2004
Excellent Performance By Gujarat Ambuja Cement for the 3rd
quater ending March 2004
Sales Volume Up - 18% at 559.10 Crores
Profit After Tax up - 106% at 145.23 Crores
Declares 50% Interim Divident
20th October 2006

Quarter ended September 30, 2006
_ Net sales higher at Rs. 1006 crores, up 50%
_ EBIDTA at Rs. 417 crores, up 102%
_ Profit After Tax at Rs. 280 crores, up 159%
_ Interim Dividend of 75%

Research comprise defining and redefining problems, formulating hypothesis or
suggested solutions; collecting, organizing and evaluating data; making deductions and
reaching conclusions; and at last carefully testing the conclusions to determine whether
they fit the formulating Hypothesis.
In short, the search for Knowledge through Objective and Systematic method of finding
solutions to a problem is Research
For the appropriate results one needs to design a research questionnaire

consciously. The basic motto behind organizing this research work was to get intellectual
joy of doing some creative work. The main aim of the research that I have undergone is
to explore the truth.
The topic was such sensitive that it was asking for high level of attention towards
the research process and every thing related to the research. So, up to possible extent it
has been conducted step by step to cover the whole aspects of the research.
I had been assigned a topic which doesn’t involve only one perspective but it was
focusing on all the activities done by the organization which is depicting in this report
under different headings. Here I have tried my best to synchronize every portion of report
to come up with meaning full information through it. It was our privilege to conduct such
research which had given the chance to look cement industry with quite huge perspective.
So that at the end of project I’m including here, the problems faced by the people.
To make the result more visual, realizing and applicable .
RESEARCH PROCESS

FORMULATING
RESEARCH PROBLEM
RESEARCH DESIGN
DETERMINING DATA
SOURCES
DESIGNING DATA
COLLECTION
DETERMINING
SAMPLING DESIGN
&SIZE
ORGANIZING &
CONDUCTING FIELD
SURVEY
PROCESSING &
ANALYSING THE
COLLECTED DATA
INTERPRETATION
PREPARING THE
RESEARCH REPORT
o Defining purpose & objective :

To gather information about all the departments in GACL & SCL that are
concerned for the value chain and in turn supply chain management
system of an organization and the contribution of activities of all the
departments to over all results .
OBJECTIVE
My objective of this research is analyzing the value chain system in

GACL and find out what else can be done to improve the value chain
system of it and to find out how is the strength of GACL supply chain
management system with compare to SCL.
o Research Plan :-
Primary Data: -
The Primary data in the Project is the data collected from the
different heads of the department from GACL & SCL. It has been taken by
directly contacting them and asking them the questions that are in the
survey questionnaire. Their feedback is noted down
Secondary Data: -
The secondary data used in the project is the information collected

from the brochures and the Web site of GACL,SCL, information has also
been collected from the books of Marketing Management by Philip Kotler,
Research Methodology by C. R. Kothari .& books regarding value chain
management system. and the different magazines like CMA REPORT etc.
Research Approach: -
I have used the qualitative approach in explorative research to study the

different activities done by GACL to add value to the product to the final

consumer for quantifying it. Qualitative research is primarily exploratory in
nature seeking to identify & clarify issue.
o Research Instrument: -
Questionnaire is the Instrument used for conducting the Research.

Questionnaire is used to get information from procurement , production ,
sales & distribution , quality control , R&D,and at the jetty I have visited the
port authority , distribution incharge , shipment incharge and custom
authority to get the information of sea transport which is the major part of
ambuja’s distribution departments to get information about time required
to complete the supply chain cycle ,and at what stages ambuja is creating
value for its customer.
Questionnaire Design: - The Questionnaire is a set of descriptive open ended

Questions. The Questions are arranged in a sequence and I have used the technical
terms which give me more useful information in less time as the department heads
are not having more time. I have framed my entire project based on answers given
by them.
Audience
The head of the department of procurement ,production ,sales &
distribution & marketing , quality control, R&D , Environment protection &
security, port authority etc. all the department concerned for value chain analysis.

strategy - value chain analysis
Introduction
“Value” is defined as “any activity that increases the market form or function of the product or
service.” And in today’s business climate, you need to maximize the value of every process in
your business.

Value Chain Analysis describes the activities that take place in a business and relates
them to an analysis of the competitive strength of the business. Influential work by
Michael Porter suggested that the activities of a business could be grouped under two
headings:
(1) Primary Activities - those that are directly concerned with creating and delivering a
product (e.g. component assembly); and
(2) Support Activities, which whilst they are not directly involved in production, may
increase effectiveness or efficiency (e.g. human resource management). It is rare for a
business to undertake all primary and support activities.
Value Chain Analysis is one way of identifying which activities are best undertaken by a
business and which are best provided by others ("out sourced").
Linking Value Chain Analysis to Competitive Advantage
What activities a business undertakes is directly linked to achieving competitive

advantage. For example, a business which wishes to outperform its competitors through
differentiating itself through higher quality will have to perform its value chain activities
better than the opposition. By contrast, a strategy based on seeking cost leadership will
require a reduction in the costs associated with the value chain activities, or a reduction in
the total amount of resources used.
Primary Activities
Primary value chain activities include:
Primary Activity Description

Inbound All those activities concerned with receiving and storing externally sourced
logistics materials
Operations The manufacture of products and services - the way in which resource inputs
(e.g. materials) are converted to outputs (e.g. products)
Outbound All those activities associated with getting finished goods and services to
logistics buyers
Marketing and Essentially an information activity - informing buyers and consumers about
sales products and services (benefits, use, price etc.)
Service All those activities associated with maintaining product performance after the
product has been sold
Support Activities
Support activities include:
Secondary Description
Activity
Procurement This concerns how resources are acquired for a business (e.g. sourcing and
negotiating with materials suppliers)
Human Resource Those activities concerned with recruiting, developing, motivating and
Management rewarding the workforce of a business

Technology Activities concerned with managing information processing and the
Development development and protection of "knowledge" in a business
Infrastructure Concerned with a wide range of support systems and functions such as
finance, planning, quality control and general senior management
The value chain or business system map

Supporting activity
Firm Infrastructure
Human resource management
Technology Development
Procurement
Line Operations
Inbound Operation Outbound Marketing Service

logistic logistics & sales
These diagram picture all of the firm’s activities and processes from procurement
to after sales services, including also research and development and overhead activities.
They are used to enable or encourage a through analysis of how each activity throughout
the firm affects costs and differentiation. They may also be used to identify important
processes or linkages among activities that span several function or are performed
through alliances or by suppliers . which in turn leads to benefit of coordination among
firms in a network to lower the overall cost for customers or enhance the noncost
elements of value delivered.
. Value Chain Analysis is a well known strategic concept which enables you to analyse
your competitive position and establish where you are adding value within the business.
The whole enterprise is 'broken down' into key 'Support' and 'Primary' activities which
are then compared with competitive 'benchmarks' representing best practice.
“Buyer-driven commodity chains refer to those industries in which large

retailers, marketers, and branded manufacturers play the pivotal roles in setting
up decentralized production networks in a variety of exporting countries,
typically located in the third world. This pattern of trade-led industrialization
has become common in labor-intensive, consumer goods industries such as

garments, footwear, toys, housewares, consumer electronics, and a variety of
handicrafts. Production is generally carried out by tiered networks of third
world contractors that make finished goods for foreign buyers. The
specifications are supplied by the large retailers or marketers that order the
goods.”
The concept has been extended beyond individual organizations. It can apply to whole
supply chains and distribution networks. The delivery of a mix of products and services
to the end customer will mobilize different economic actors, each managing its own value
chain. The industry wide synchronized interactions of those local value chains create an
extended value chain, sometimes global in extent. Porter terms this larger interconnected
system of value chains the "value system." A value system includes the value chains of a
firm's supplier (and their suppliers all the way back), the firm itself, the firm distribution
channels, the Empty vessel and the firm's buyers (and presumably extended to the buyers
of their products, and so on).
Capturing the value generated along the chain is the new approach
taken by many management strategists. For example, a manufacturer
might require its parts suppliers to be located nearby its assembly
plant to minimize the cost of transportation. By exploiting the
upstream and downstream information flowing along the value chain,
the firms may try to bypass the intermediaries creating new business
models, or in other ways create improvements in its value system.
When not to apply The Value Chain
Porter's basic model describes an industrial organization buying raw materials and
transforming these into physical products.
In 1985, When Porter introduced the Value Chain, around 60% of most western
economies' workforces were active in service industries. In 2006, most service industries
in western countries employ over 80% of the workforce.
Critique on the Value Chain model and its applicability to services organizations has
since been voiced by both academics and practitioners. Porter's focus on 'either or'
strategies and competition as the main driving force in any industry, are not that well
suited to the complexity of most industries today. Collaboration in addition to
competition and differentiation in addition to low cost are common drivers. Furthermore,
Porter is focused on the tangible outcomes of cost, revenue, margin and basic
configuration of business activities. The Value Network may be the mental model that
embraces the linear Value Chain Model and that adds an extra dimension for those
seeking to make sense of complexity as we see it in organizations and their environment
today.
Value Chain Analysis or Value Stream Mapping is a useful tool for working out how you
can create the greatest possible value for your customers, as well as your best route to
profit maximization.
In business, we’re paid to take raw inputs, and to “add value” to them by turning them
into something of worth to other people. This is easy to see in manufacturing, where the
manufacturer “adds value” by taking a raw material of little use to the end-user (for
example, wood pulp) and converting it into something that people are prepared to pay
money for (e.g. paper). But this idea is just as important in service industries, where
people use inputs of time, knowledge, equipment and systems to create services of real
value to the person being served - the customer.
Furthermore value chain analysis is particularly useful for new producers – including
poor producers and poor countries – who are trying to enter global markets in a
manner which would provide for sustainable income growth. Finally value chain
analysis is also useful as an analytical tool in understanding the policy environment
which provides for the efficient allocation of resources within the domestic economy,
notwithstanding its primary use thus far as an analytic tool for understanding the way
in which firms and countries participate in the global economy
In most industries, it is rather unusual that a single company performs all activities from
product design, production of components, and final assembly to delivery to the final user
by itself. Most often, organizations are elements of a value system or supply chain.
Hence, value chain analysis should cover the whole value system in which the
organization operates.
Within the whole value system, there is only a certain value of profit margin available.
This is the difference of the final price the customer pays and the sum of all costs
incurred with the production and delivery of the product/service (e.g. raw material,
energy etc.). It depends on the structure of the value system, how this margin spreads
across the suppliers, producers, distributors, customers, and other elements of the value
system. Each member of the system will use its market position and negotiating power to
get a higher proportion of this margin. Nevertheless, members of a value system can
cooperate to improve their efficiency and to reduce their costs in order to achieve a higher
total margin to the benefit of all of them (e.g. by reducing stocks in a Just-In-Time
system).
A typical value chain analysis can be performed in the following steps:
 Analysis of own value chain – which costs are related to every single activity
 Analysis of customers value chains – how does our product fit into their value
chain
 Identification of potential cost advantages in comparison with competitors
 Identification of potential value added for the customer – how can our product
add
 value to the customers value chain
The below given is the department wise performance of ambuja.
Inbound Logistics

Taking greater control of inbound logistics is becoming a top priority for many
manufacturers and retailers. Turning attention to inbound logistics will not only reduce
costs, but also a generate more collaborative relationship with internal organizations,
suppliers and logistic providers, which will ultimately result in a more effective business
process from which all parties will benefit. In my study, i tried to exploit a the system
which AMBUJA is using, because efficient and effective inbound logistic performance
would benefit all participants in the value chain. I started by investigating the unique
features of the inbound logistic system with a comparison of the outbound, and this was
then followed by a description of the current inbound logistic operation systems, from
both an information flow and material flow perspective. I found that all inbound
operations can be categorized into that of traditional demand to supply model to that of
the VMI model. In approaching overall supply chain efficiency, a model hypothesis was
therefore created as a future oriented solutions. Parameters were also defined to evaluate
the performance of inbound logistics.
So the main thing in inbound logistics is how material is get into the factory and how it is
managed within the factory.
Material Handling system
In a manufacturing firm, the raw materials are obtained from the suppliers and are
stored in the store room. These raw materials are then issued to purchase department and
are moved inside the plant from one process to another till they are converted into
finished goods.
Thus material handling involves movements of materials from one place to
another for the purpose of processing. They are moved either manually or mechanically
The job tackled by material handling equipment includes lifting, moving, dropping,
positioning ,holding, releasing, stacking etc.
In general course machines at installed at one place. Men have limited
area of movement they can only moved from one section to another thus having limited
on their movement.
Factors affecting material handling

1. Types of the product
2. plant layout type of production system
3. production planning and control
4. packaging
5. material handling equipment
Material handling equipment used at GACL

GACL have efficient material handling system. GACL have selected most appropriate
material handling equipment and the plant layout of GACL is such that there is minimum
movement of materials. Various materials handling equipment used by GACL are as
follow.
1. Pipelines :

It is mostly used at plant for material handling. Gacl uses pipelines for
handling of various materials from one machine to another. Pipelines are
even used to pass hot gases, which are used to dry up the moisture
contents in the grained materials.
2. Pneumatic conveyor :-
The pneumatic conveyor is used for conveying all types of dry bulk
materials of powdery to fine grained or gritty nature. The pneumatic
conveyor unit designed for dust free operation.
3. Aeropol vertical conveyor :-
The aeropol vertical conveyor is used for continious handling of dusty &
granular materials. This helps in handling the powdered material& passes
it from one process to another.
4. Bucket elivator :
It is the simple volumetric machine used to elevate the bulk material.
5. Tractors :
Used to bring the milestones from mines to plant .These are useful to have
an uninterrupted supply of raw material.
6. Tanks :-
Used to bring the milestones from mines to plant. Trucks are even used to
bring gypsum & coal from the storage area to plant.
Logistics involves 2 major operations

1) materials management
2) Physical distribution management
The entire process of Logistics (scope of logistics) is shown as below.

Materials management Phisical Distribution
Outbound
fininshed
Inbound godds
materials Inventory
WIP Product Finish in the
Suppliers flow uion ed field
goood
s
Transit Interme
Depot diatory
Customer
LOGISTICS
Cement, being freight intensive industry, various initiatives had been taken up by GACL to
streamline its logistics.
GACL was one of the first cement producers of the country to introduce an Integrated Logistics
System (ILS). At each manufacturing unit, a cross functional committee was responsible for the
efficient management of logistic functions.
The committee met at regular intervals and reviewed the working of the total system. The
recommendations were forwarded to the top management for immediate action.
Order Processing Systems
Order Processing Systems involved the flow of information about the orders from
generation to order fulfilment. Orders once received, had to be processed quickly and
accurately. GACL had linked all the major offices through a Wide Area Network (WAN).
Electronic Data Exchange (EDE) and Material Resources Planning (MRP) systems
facilitated timely and accurate processing of orders...
INVENTORY CONTROL

Inventory control is the process of deciding what and how much of various item
are to be kept in stock. It always determines the time and quantity of various items to be
produced. The basic objective of inventory control is to reduce investment in inventories
and ensuring that production process dose no t suffer at the same time. To attain various
objectives inventory control must.
A. Determine the item to be stocked.
B. Determine when and how much to replenish.
C. Keep suitable records.
D. Weed out obsolete items.
Difference companies use various methods of inventories control such as ABC

analysis, EOQ, Maximum and minimum level of inventory etc. Gujarat Ambuja Cement
Ltd uses the ABC analysis and XYZ analysis for the inventory control.
Gujarat Ambuja Ltd has not its own inventory control department. It is a part of material
department.
MANAGEMENT OF INVENTORIES
Inventories constitute the most significant part of current asset of a large majority
of companies in India. Because of the large size of inventories maintained by firms, a
considerable amount of funds is required to be committed to them. It is therefore
absolutely imperative to manage inventories efficiently and effectively in order to avoid
unnecessary investment.
An undertaking neglecting the management of inventories will be jeopardizing its

long run profitability and may fail ultimately. The reduction in excessive inventories
carries a favorable impact on a company’s profitability.
In G.A.C.L. inventories are stock of the product, the company is manufacturing

for sale and components that make up the product. The various firms in which inventories
exist in the company are:-
 Raw material is those basic inputs that are converted into finished products
through the manufacturing process. Raw materials inventories are those
units which have been purchased and stored for future productions.
 Work in progress inventories are semi manufactured products. They

represent products that need more work before they become finished
product for sale.
 Finished goods inventories are those completely manufactured products

which are ready for sale. Stocks of raw materials and work in process
facilitate production, while stock of finished goods is required for smooth
marketing operation.
In the company, an effective inventory management is there which ensure a

continuous supply of raw materials to facilitate uninterrupted production, maintain
sufficient stocks of raw material in periods of short supply and anticipated price changes,
maintain sufficient finished goods inventory for smooth sales operation, and efficient
customer service, minimize the carrying cost and time, and control investment in
inventories and keep it at an optimum level.
Operation
Production is the basic activity of all the industrial units. All other revolve around
this activity. We can say that production activity is nothing but the step conversion of one
from of material into another either chemically or mechanically. The end product of the
production activity is the creation of goods or services for the satisfaction of the final
Consumer. The production activity is process by which the goods are produced or utility
enhanced.
According to E. BUFFA,
“Production is the process by which goods or services are created.”
Origin and manufacturing of cement
Cement is one of the most important building materials used thought the world. it
was firs discovered by joseph aspdin in England he called it Portland cement.
some of the main cement producing countries of the world are china, japan, united states,
India. In India the most important units for the manufacture of the cement are at
gujart,rajasthan,orissa, Madhya pradesh, tamilnadu etc. annually India is producing
nearly 100 million tones of cement.
The raw materials used for the manufacture of Portland cement are lime stone and
clay. Lime stone provides calcium oxide and the clay provides silica, as well as alumina
and ferric oxide. The approximate composition of the cement is
Cao 60-70%
Sio2 20-25%
Al2O3 5-10%
Fe2O3 2-3%
The detailed manufacturing process is given below.

According to the mode of preparing the raw mix three different processes can
manufacture cement.
a) Wet process
b) Semidey process
c) Dry process

Gacl uses the dry process for cement manufacturing. Selection is based on the fact
that dry process consumes less thermal energy and minimizes the pollution. The
total process the divided into various stages as follow.
MANUFACTURING PROCESS
The manufacturing process for the cement adopted by G.A.C.L. is as follows:-
(1) MINING: - The limestone is mind from open cast quarry by conventional drilling
and blasting method. The blasted material is excavated by hydraulic excavators
and loaded into haulage dumpers having carrying capacity of 35 meters. The
material is hauled from quarry to the crushing plant for size reduction.
Occasionally the limestone is also ripped by hydraulic ripper. Mare is dug out by
ripping as it is very soft and loose.
(2) CRUSHING & PREBLENDING: - Limestone as blasted is required to be

crushed as it is in form of boulders up to 1.2sq.metre. This is dumped into the
dump hopper and pushed into the single rotor impact crusher. Its rated capacity is
600 meters per hour. The main crusher is supplied by Elecon in collaboration with
SBM, Austria.
The crushed lime stone is conveyed to preblending yard for pregomogenization of

raw material. The single boom stacker, travels on the rail to make linear stock
piles having capacity of 48000 meters. Continuous pneumatic flap type sampler
samples the input material which is tested on hourly basis for full analysis in XRF
lab. The material is evenly stacked on alternatively layers of limestone and marl
to make the ‘chevron’ type stock piles.
(3) RAW MATERIAL GRINDING: - The raw materials are fed to vertical roller
mill. The mills are based on KP design and have rated capacity of 220 TPH. The
raw material are grinded from 75mm size to the fineness 85% passing through 90
microns. The grinded raw meal is continuously sampled by pneumatic cylinder
type FLS made sampler.
The grinded raw meal is tested every hour in XRF lab. This is operated in
conjunction with QLX system, software supplied by raw materials proportioning
calculations. The adjustment of weigh feeder setting is done by computer on
continuous basis, so as to match with present targeted value.
(4) BLENDING: - The grinded raw meal is conveyed pneumatically by airlift

To The blending silo. The raw meal silo has huge capacity of 12,500 meters which
also blends the raw meal with blending efficiency of 7:1? The homogeneous raw
meal is extracted from the bottom of silo where it is weighed accurately by
weighing system viz. Poldos.
(5) PYROPROCESSING: - The homogeneous raw meal known as kiln feed is fed
to5 Stage preheated- kiln of polysius design known as dopol. It incorporates a
stage Known as precalciner, where about 50% of the fuel is fried to achieve 90%
Calcinations. The calcined raw meal enters the rotating cylinder known as ‘kiln’
(Size -4m dia * 60m length), where it slides down to burning zone.
About 50% of the fuel is then fired here to sinter the raw meal into the clinker in
burning zone, the thermo chemical reactions take place and all the oxides are
converted into the minerals known as tricalcium silicate, dicalcium silicate,
Tricalcium aluminates and tetra calcium alumina ferrate. Different type of
Refractories is laid to protect the kiln shell.
Hot clinker is discharge into the ‘Great cooler’ where the red hot clinker is cooled
from 1300 degree Celsius to less than 100 degree Celsius by air quenching. The
hot air from the cooler is drawn back as secondary and tertiary air as Recuperating
heat. Induced draft fans draws about 5 lakh M3 per hour air through the kiln and
preheated. This hot gases exchange their heat to incoming raw meal in the
preheated cyclones. As a result the gases cool down and the material gets heated.
The hot gases from preheated exit are used in vertical roller mill for drying the
raw material while grinding.
The cooled clinker is transported to circular stock pile by Deep bucket conveyor.
The storage capacity of circular clinker stock pile is about 40,000 MT. The coal
used in process is pulverized in a vertical roller mill of KP Design. The fine coal
is stored in hopper and transported pneumatically to kiln and Precalciner by
separated FK buckets.
(6) CEMENT GRINDING AND PACKING: - The clinker extracted from the
bottom of storage yard is fed to cement mill supply hopper. Another hopper is
used as supply hopper of gypsum. The mixture of clinker and gypsum is fed in to
the ball mill, operating in closed circuit with polysius design high efficiency
separator.
The finished product cement is transported to respective silos by bucket elevator.

Cement is transported to packing plant for packing and dispatching. 2 rotary
packing machines having capacity of 120 mt/ hour are used to pack the cement is
dispatched to various destinations by rail, road and sea transport.
(7) PLANT OPERATIONS: - The entire plant is operated from central control room
where the process operating personnel closely monitor, the plant operation on
visual display units. The computerized process control system with field
instrumentation ensures the steady and smooth operations of the plant.
Flow chart of the cement production process
Mining
Crushing & pre blending
Row material grinding

Blending & kiln feed
Pre heating & kiln cooling
Cement milling
Cement storage packing & bulk loading
This department is situated in the CCR building. The whole process is computerized ,
where process-operating persons closely monitor the whole plant operation through
visual display. Computerized process control system with the field instrumentation
ensures the steady and smooth operation of unit. The whole process is displayed on the
computer and any change of problem in the process is easily identified so that necessary
steps can be taken immediately.
Plant layout of the GACL
Product layout :
As GACL is engaged in producing which is one of the basic industry. The
production process of ambuja only involves producing of one commodity i.e.
cement. In producing cement the raw material goes through different process step by
step in order to get converted into cement.
As ambuja practices continuous flow of production and the process is
arranged based on the product to be achieved, it is organized in a product layout
form, which facilitates the production of cement in a systematic way or manner.
Selection of location
GACL is situated near vadnagar village in kodinagar. The location of the plant is
very beneficial for its existences as the area is surrounded by lime stone, which is
one of the basic raw materials in the cement production. Company is also
benefited as the area of the plant site is near the sea cost which facilitates the sea
transportation through sea route. Ambuja has also developed its own seaport for
transporting cement to other destinations. This has helped GACL to export their
product easily through seaport directly thereby increasing export figures of the
entire company.
Factors affecting layout of the company:
Location factors are very much important in establishing a cement plant.

1. Input :-

In terms of input, about 1.5 tons of limestone is required to produce on ton of
cement . Hence location of the plant is based on the limestone deposit. The
major cash out floe come by way of royalty and cash payments. India’s
estimated total reserve of cement grinding stone is about 90 billion tons.
2. Power :-
It is used in raw material grinding. Clinkerization of limestone is done in the
kiln operation and then clinker is grinding with gypsum to form cement. Thes
older plants required 120 to 130 unit per ton of cement produced, while
modern energy efficient plants consume 80-90 units per ton. Cement
manufacturing is continuous process, so quality of power plants is important.
3. Coal:-
Coal is another major input, which along with electricity forms 40% of total
cost is used not only as fuel in the kiln but also to burn the lime stone, on an
average 250 kg of coal is required to produce one tone of cement. There is a
several coal shortage for the industry. The coal is generally imported from
certain African countries, which are unloaded at companies muldwarka port
that is near to the factory site.
4. Labour :-
On growing modernization of plants, the requirement for skilled manpower
has increased then that of unskilled manpower. The cheap availability of
labour from the near by areas has proved to be great help for the company.
5. Transportation :
It is a very important thing to be kept in mind while deciding the location. It
cost widely affects the overall cost, the seacoast is one of the important
transportation modes for exporting companies, the company has its own jetty
at muldwarka. This reduces cost of transportation for the company.
Production planning & control:
Production planning & control are the two main aspects of

production. Production planning is prerequisite of production control. Production control
cant be imagined without production planning.
Production planning is the function of management to look
ahead.,anticipated difficulties and take steps to remove obstacles before they are
materialized. Where n unit is contantly evaluated and compared with standards set in
advance.
At GACL production planning is jointly done with dispatch department on

the bases of order and dispatch for the next month provided by dispatch department
production department plans production and its operations. And on the basic of
production planning, department strict control on the production activity and
continuously evaluated the performance is monitored throughout as the entire system is
computerized.
OUTBOUND LOGISTICS
In recent years companies and academic organizations have focused on outbound
operations due to their being the customer-oriented part of the business whereas the
control of the inbound operations was generally left to the suppliers. But now outbound
operations have become streamlined and extracting additional benefits has become more
and more difficult.
CONCEPT OF DISTRIBUTION
Distribute means to spread out or discriminate. In the field of marketing channel

of distribution indicates routes or wags through which goods and services flow or move
from producers to consumers.
We can define formally distribution channel is a set of marketing institution

participating in the marketing activity involve in the moment of the flow of goods or
services from primer producer to the ultimate consumer.
CHANNELS OF DISTRIBUTION
Channel of distribution is a route or path through which goods transferred from

the place of production to the place of consumption. In other words channel of
distribution is a pipeline by which customers or users can obtain product which can
satisfy their needs.
The producer cannot himself go in the market for selling his each unit of
production, because he has no such time and again it cost too much to go in the market
and sell his product. For this difficulty they take the help of middlemen who supply
producer’s goods to consumers. The middlemen include wholesaler, retailers, dealers,
agents, distributors etc. those are middlemen who are well acquainted with the position of
the market and hence they can distribute the companies’ product easily.
A distribution channel moves goods from producer to consumer. It overcomes the

major time place and possession gaps that separate goods and services from those who
would use them. Members of the marketing perform many key functions which are
outlined below:-
 Help in production mix.
 Financing the producers.
 Promotional activities.
 Stabilizing the price.
 Matching demand and supply.

VARIABLES USED IN THE STUDY OF MARKETING
CHANNELS AND DISTRIBUTION OF THE COMPANY
The company used both direct as well as indirect channels of distribution. Since it
is a consumer oriented product. Beside it is used by all types of people including rich,
middle and poor. So it is necessary to take into consideration from the opinion of all types
of people who are going to use these products. It is a kind of product which is used by all
types of people irrespectively. It has high demand because it has been used for the
construction of building, bridges, dam etc. so the respondent of this product is almost all
types of consumers and most of the sales are done through middlemen like Stockiest,
sub-stockiest, retailers etc and so on.
Almost all the middlemen are involved in distribution channel either directly or
indirectly. It is a product which cannot be sold through direct market. It is being sold
through indirect sale only, because the manufacturer has no direct contact with the
customers. Therefore it is necessary to obtain information from various middlemen like
dealers, sub-stockiest etc.
Thus, GACL has following organizational chart
Manufacturer
Stockist/dealer
Sub stockist
Retailer
Consumers
PHYSICAL DISTRIBUTION
MEANING AND IMPORTANCE OF PHYSICAL DISTRIBUTION
MEANING:-
Physical distribution means the distribution of goods and services from the point
of production to the point of consumption. Here the goods are made available to the
ultimate users through proper distribution. Physical distribution of commodity of
commodity represents. Those activities which create time and place. Utilities in the
process of the actual movement of goods from producer to consumer. These activities are

key link between producers and consumers and are performed by the producers,
middlemen, and a buyer is varied degree.
Proper physical distribution is to control or distribution increase in sales volume,

Co-ordination of demand and supply stabilization of price, effect on size of inventory etc.
Physical distribution includes various activities viz. transportation and storage

inventory etc.
PHYSICAL DISTRIBUTION OBJECTIVE
No body can carry out any activity without objectives for e.g. The Company is
incorporate to earn profit after production and sale of goods. The company selects good
pricing policy with the objective of creating monopoly in the market. In other words
objective provides backing to the company by which it try to achieve it objectives.
Physical distribution objectives as getting the right goods to the right place at the
right time for the least cost. Following are the main objectives of Gujarat Ambuja Cement
Ltd.
 To minimize the cost of transportation.
 To minimize the cost of handling.
 To control over inventory.
 To maximize customer service.
 To follow good order processing system.
 To make goods available to the customer at the right time and place.
IMPORTANCE OF PHYSICAL DISTRIBUTION
In modern business world, the problem of physical distribution is being given

more attention than before. Because the cost of distribution is the major part of the total
cost.
 The total cost and the selling price can be minimized by controlling the
physical distribution activities.
 Under the efficient system of physical distribution a detail analysis of

transportation and storage cost is made in view of controlling or minimizing
the distribution cost.

 Physical distribution aim at increase the sales volume by inventory control. It
reduce the quantity of stock held by the consumer if he is assumed of the
regular supply
 Physical distribution facilitates the co-ordination between the demand and

supply
 The industry producing cement having daily demand. The product is

produced daily and supplied everywhere.
 Check and modern transportation system makes it possible to transport the

goods to the consumer place in time
Evaluation of channel distribution
After noting carious channel alternatives which alternatives would best satisfy the
long term objectives of the firm taking in view the factors which would effect the channel
decision for this purpose, which alternative must be related against eaconomi,control and
adoptive criteria.
1. Economic criteria :
For evaluating the effectiveness of channel of distribution the
economic criterias are most important since it forms the affects the
profit. That how much it will cost.
2. Control criteria :
In evaluating the channel the second main consideration is that of
control i.e. how usual the marketer be in a position. Is it
controllable how to control them.
3. Adoptive criteria :
The next consideration in channel decisions is to see whether the
channel would be suitable to adopt the changing conditions in the
future.
Evolution of physical distribution can be carried out with the help of effectiveness
of each step of physical distribution.
Here in Gujarat Ambuja Cement Ltd first of all, order processing system is
followed, therefore they can devate their times towards orders of buyers. Secondly,
warehouse is available besides the production department which reduce the transportation
cost also, the company has inventory control department which determine inventory
level. The company uses Road, Rail and Sea way of transportation modes.
SALES AND DISTRIBUTION PROCEDURE
The major activity of sales and distribution department is to receive order from sales
officer, dispatch cement as per order received through proper transportation mode.
Dispatch procedure:-
Company has adopted following procedure for dispatching of goods for orders received.
Receiving of orders:-
It is the responsibility of marketing officer to collect the orders from the
customer. These orders are collected by phone, letters, e-Mail, fax etc.
Processing of orders:-
Whatever orders are collected is send to the unit through E-mail and Fax
total information of the order are stored in the computer. Now this order is send to the
booking office and a copy of this is send to transport office.
Dispatch programme:-
When the transporter gets the copy of order, he sends his vehicle with the
memo. Memo includes information regarding type, quality, quantity of cement and
distance to the place.
Dispatch order:-
When the truck of the transporter comes to the unit, driver has to receive a
dispatch order in which all the information about goods is included.
Loading process:-
After receiving dispatch order, driver which reaches the packing house,
where firstly the empty truck is weighted and then it is loaded with bags and again it is
weighted.
Gate pass receiving:-

After loading bags of cement, truck driver receives gate pass which is signed
by authorized securities and then only truck is allowed to go outside the factory.
Vehicle Trip Card:-

This is the new kind of process that is followed by G.A.C.L. Under this
process driver of the vehicle is given a form under which he has to submit to the receiver
of the goods. The party receiving has to enter the Date and time of receiving the goods
and the total time taken to unload the goods and time of dispatch of truck from his
destination.
The format of the trip card is given in the annexure:-
Truck Khoj.com :-
This is also a new process that is followed by G.A.C.L. In this process the driver of the
truck has to stamp a card that is being provided by the company in various locations
where the depot machine is kept.
By following this process company comes to know the time take for the truck to pass a
certain destination and would easily keep a track on the truck.
Transportation process:-

Transportation takes place by three modes which are roadways, Railways,
and sea transportation.
1. Road Transportation:-
G.A.C.L has assigned three transport companies which are:-
 Rajmoti transport.
 Auto hire transport
 Abshiek transport
All the three has been divided and allocated their area of transport.
Rajmoti - Junagadh, Jamnagar, Sabarkantha, Kheda &

Mehasana.
Auto Hire - Amreli, Rajkot, Valsad, Surat, Panchamahal,
Gandhinigar &Ahmedabad.
Abhishek - Kutch, Bhavanagar

Order through and Baruch.
IT/FAX/INTERNET
Flow chart of distribution through road
Transporter
Collection Order receipt and processing
memo
Security and Booking

office Loading
memo
Weidge in
Packing/loading
Security count
Weight out
46 A report on Ambuja cement Ltd. Excise invoice

Analysis of value chain
Security check out

2. Rail Transport:-
Ambuja has constructed its own railway siding and it runs from Vadnagar to
Kodinar and from Kodinar it reaches different place. But nowadays G.A.C.L. is not using
this mode of transportation much.
FLOW CHART OF RAIL DISPATCH
Rake programmed Coordination & licensing

From mktg
Procedure Bhavnagar Siding Kodinar Packing

Plant House
Indent to railway
Payment of wedge and demand registration
Communication to branch priority

wise dispatch program
Supply the stock to agary

Distribution through FOR bases to stockist
Loading the wagons
Payment of freight
Movement of loaded rail

Sea Transportation:-
Water transportation being a cheapest source of transport, G.A.C.L. has developed its
own jetty at Muldwaraka (Kodinar), Panvel (Mumbai), and Magdalla (Surat).
Port Terminal
Muldwarka, Gujarat: All weather port, 8 kms from our Ambujanagar plant. Handles ships
with 40,000 DWT. Is also equipped to export clinker and cement and import coal and
furnace oil.
A fleet of seven ships with a capacity of 20500 DWT ferry bulk cement to the packaging
units.
Bulk Cement Terminal
Surat: Bulk Cement Terminal with a storage capacity of 15,000 tonnes has bulk cement
unloading facility.
Panvel: Strategically located near Indias biggest cement market, has a storage capacity of
17,500 tonnes and a bulk cement unloading facility.
Galle: 120 kms from Colombo, Sri Lanka. Handles million tonnes of cement annually.
G.A.C.L. transport cement from Muldwaraka to panvel and Magdalla.
G.A.C.L. also has its own seven ships namely:-
1) AMBUJA KIRTI.
2) AMBUJA SHAKTI.
3) AMBUJA VAIBHAV.
4) AMBUJA SHIKHAR.
5) AMBUJA GAURAV.
6) AMBUJA LAXMI.
7) AMBUJA BHAVANI.
FLOW CHART FOR DISPATCH THROUGH SEA
Planning
Factory Muldwarka
(Unloading in
silo)
Domestic Export
Panvel Magdala
Mechanical equipment used for import & export purpose in Ambuja to fasten the
movement of goods and have access to the area where labor can’t reach.
 Bucket elevators
 Scru conveyer
 Belt conveyer
 Air slide ( for short distance only)
 Cement Blow pump (for stand by use when other equipment are under
maintenance)
 Tug (to pull/push the loaded ship capacity : 40000 tones at a time)
 Silo (for storing the cement temporary capacity: 5000 tones)
Thus the development of physical distribution facility has made the production
feasible through the year at lower cost of production and distribution.
Reason for the Delay in dispatch
Constraints in sales & distribution
1. Order fluctuation
2. Non availability of required number of trucks/fluctuation due to
 Less incoming material
 Seasonal effects
 Demand of trucks in nearby areas
 Freight constraints
3. Movement bottlenecks
4. Abnormal detention at unloading point
5. Multiple deliveries
6. Distance exceeding in two point deliveries
7. Too many diversion cases
8. In accessible destinations having poor road conditions
WAREHOUSING FACILITY
Every company must store goods properly until they are sold. Warehousing means
the functions of the company. Here goods produced are brought and packed accordingly.
Then these packed goods are stored in warehouse in such a way that it becomes easy for
the company to supply it to their customers as when required. Some companies possess
their own warehouse while other may use public warehouse for which they have to pay
rent. Warehousing is very important since it preserves the valuable goods of the company
from spoiling, the insects, theft etc.
The Gujarat Ambuja Cement Ltd has three SILOS for the storage of cement at the
nearest place of production. The capacity of each SILO is 5000 tonnes. The company has
its own dumps at different places. The cement is stored in dumps when they receive
orders immediately they execute cement from dumps.
TRANSPORTATION

Transportation in value chain refers to efficient and price sensitive movement of
final finished goods from source to destination the physical distribution aims at 7 R’S In
transportation
RIGHT PRODUCT
RIGHT QUALITY
RIGHT CONDITION
RIGHT TIME
RIGHT PLACE
RIGHT CUSTOMER
RIGHT COST
Here from my observation it is clear that AMBUJA is fulfilling all the 7 R’s
Transportation attempts at fulfilling 3 r”s out of 7 R’s of physical distribution i.e.

right product at right time at right place.
# M ode of transportation
 ROAD
 RAILWAYS
 ROPWAYS
 WATER
 AIR
 PIPE LINE
 INTERMODAL
Ambuja is using rail road rop ways and water for transportation out of that it is
very efficient in sea transportation.
Action plans
 To ensure execution of orders within 48 hrs

 To ensure adequate availability of material at muldwarka terminal as per ship
planning
 To plan & monitor the tanker movement to bring down the cycle time to
minimum 10 trips per tanker.
 Better co-ordination ,fed back with marketing branches.
 To comply with all statutory requirement/ documentation ,to avoid unnecessary
pressure/ action by Govt. authorities , for non-compliance.
 Effective liasoning with the concerned Govt. officials.
 To study the activities of nearby plants
 To co-ordinate and monitor unloading operation of material trucks for speedy
unloading.

Marketing & sales
Marketing is a comprehensive term and it includes all resources and set of
activities necessary to direct and facilitate the flow of goods and services from producer
to consumer in the process of distribution. Businessman regards marketing as a
management function to plan, promote and deliver products to the clients or customer.
Human efforts, financial management constitute the primary resource in marketing.
Marketing is the process of planning and executing the conception,

pricing, promotion and distribution of ideas, goods and services to create exchange the
satisfy individual an organizational objectives. Marketing management usually represent
all managerial efforts and functions to operate the marketing concepts not only in letter
but also in spirit. Marketing concept demands customer oriented marketing plans,
programme and policy so that the marketer can assure perfect positive correlation
between the supply and demand. The survival and growth of any business depends upon
profitability and when marketing management becomes a good practitioner or marketing
concept profitability and growth are duly assured.
The marketing department is situated in our country as well as in foreign

country. The head office of marketing department is at Mumbai and at Baroda, Surat,
Ahmedabad, Rajkot and Bhavanagar.
NEED FOR MARKETING OF CEMENT :
Some of the factors like competition create awareness of product to

customer, market penetration to achieve goal for selling in particular segment, to
establish good image of the brand of product to customer, tec. Are driving force behind
marketing task. As additional companies are coming up in the sour then region, and
eastern region there is stiff competition among cement producing companies. This
companies. This companies need to adjust themselves to changing situation by upgrading
the technology, widening product range, developing new market segments, improving
existing channel of distributions etc.
Essentials of cement marketing

1. Focus on brand name
2. Effective differentiation
3. Effective public relations
4. Price differentiation
5. Strong distribution network
GACL has created marketing department in Gujarat,maharastra,rajasthan, etc.

states of country as well as in foreign countries too. The head office of marketing
department is at mumbai, which looks after the marketing of all regions centrally.

In Gujarat GACL has created its own office at rajkot,bhavnagar,baroda,surat and
ahmedabad.
To identify the wants and create customer satisfaction through product

innovation, product quality and customer service GACL takes assistance of sales
representative. The marketing department of GACL is a comprehensive one
which helps GACL to withstand the severe competition persisting in cement
industry.
Objectives
The following are the objectives of marketing department at GACL
1. To find new & new customers to sell them more & mor of companies product.
2. Try to Convince the customer about better & quality product.
3. To provide a successful distribution of consumer product.
4. To study the market problems according to circumstances & suggest the solutions.
5. To sell their products in new areas to make new customers & satisfy old ones.
6. To encourage the customers & know the fault in their products & then try to
make quality or faultless product.
Dealers / customers satisfaction
Due to cut throat competition in market importance of customer has increased .Now a
day sellers are more in numbers while users or consumers are less in numbers.
Therefore, it is essential for producer to know the satisfaction level of his product.
The promoters & service coupled with delivery schedule , high quality, right price &
maintaining customer relation.
In GACL the level of customer satisfaction & as well as dealer satisfaction is very
good. It is due to reason that the product is of high quality services, delivery in time.
PRODUCT PLANNING
The product is the most tangible and important single component of the
marketing programme. The product policy and strategy is the corner stone of a marketing
mix. Without a product, there is nothing to distribute, nothing to promote and nothing to
price. To the marketer, products are the building blocks of a marketing plan.
Good products are key to the market success. Product decision is taken
first by the marketer and these decisions are central to all the other marketing decision
such as price, promotion and distribution. Product is the vehicle by which a company
provides consumer satisfaction. It is the engine that pulls the rest of the marketing
programme.
A product plan is a company plan for marketing its products the company
lay down the product objective, develop a product design to achieve the set objectives
and have a product programme suitable to the product’s position in the life cycle. Product
plan involves a number of issues to be resolved: -
Product mix.
Product item :
A single product the product item of GACL is cement.
Product line
G.A.C.L. is producing mainly Ordinary Portland
Cement (OPC). But as need
arises i.e., according to the demand, it also products other brands of cements.
 ORDINARY PORTLAND CEMENT: - It is a chemical product obtained by the

preliminary mechanical mixture of carbonate of lime with silica and alumina,
which after passing through the succeeding stages of manufacture, results in a
combination of silicates and aluminates of lime. This material possesses the
delicate grey colour of Portland stone, and thus is known as Portland cement. Its
fineness is 2958cm/gm
There are three types under this category:-
A. 33 GRADE: - Compressive strength at the end of 28 days is 330 kg/ cm.

Now-a-days this type is considered to be outdated. It is used for normal
construction.
B. 43 GRADE: - Compressive strength at the end of 28 days is 430 kg/ cm.
usually; this type of cement was in regular use before 5 years. It is also
used for ordinary construction.
C. 53 GRADE: - Compressive strength at the end of 28 days is 530 kg/ cm.
Due to recent research and develops of cement technology; we can
achieve maximum strength within definite period. This type is highly
demanded in the market, so OPC 53 grade production is in usual course
for prestressed concreting works.
 PORTLAND POZZOLANA CEMENT (PPC):- Pozzolana material like brick

powder is added extra in the preparation of it. In this cement, the strength at initial
stages up to 28 days is very low but afterwards i.e. near about after 1 year, it will
get more strength than OPC. As the initial period is low, it is used only in long
course constructions like dams & heavy foundations. Its fineness is 3860 cm/gm.
Packing.
Labeling.
Branding.
Service after sale.
Organizing for product planning and development.
Product research and improvements.
Mainly GACL produces ordinary Portland cement (OPC) but according to

the demand, it produces other types of cement that is Portland pozzoland cement (PPC),
high strength ordinary Portland cements (HSOPC) and 53 grade cement and a special
brand for railways.

At GACL, quality is given close attention. The test of quality and strength
of their cement is done regularly. The tests have shown that Ambuja Cement has got the
highest comprehensive strength which is above the specification of ISI and is of
international standard.
The quality policy adopted by GACL is “Do it right the first time” on
product planning, the product which has got the highest demand and which is most
profitable one is prepared by the company. Mainly OPC which is very economical is
produced but whenever specific demand arises they produce accordingly. In the recent
past Narmada Project had demanded PPC and it was supplied by GACL.
MARKET PLANNING
Marketing management is responsible to formulate comprehensive

marketing plan indicating objectives to be achieved and future course of action. To
accomplish the predetermined targets.
The marketing plan is the main operational and controlled document of

marketing department. It gives intelligent direction of marketing operations. It can inspire
marketing staff to reach the target as per plan. Progress can be measured against set goal.
There will be no confusion and misunderstanding between marketing executives. All
department plans can be integrated with each other.
GACL also does marketing planning. Usually there are long range plans
covering 5 to 10 even 15 years. The planning period is of 3 to 5 years. The first two years
are covered in details. Also project plan for a period of 1 or 2 years are there which cover
specific projects outside the normal marketing field like introduction of a new product,
launching of a special campaign.
In the company marketing planning is done in order to have bright future.

Its planning process usually begins with the review of current market situation through
situation analysis. The marketing process adopted by the company is as follows:-
 Marketing opportunity analysis – providing analysis and assessment of

marketing opportunity
 Preparation of marketing objectives – to match the marketing opportunities

in a competitive marketing.
 Marketing strategy providing marketing segmentation and market share is

prepared.
 Marketing mix involving, price, promotion and distribution strategies.
 Controlling of the marketing plan is done to achieve accomplishment of

marketing objective

According to the company, planning is important but planning is not their end as
it only a means. It should not be tended to become an end in itself, because in reality
performance is critical and achievement of objectives is the ultimate goal.
MARKET SEGEMENTATION
The behavioral signs have developed multi dimensional concept of buyer

behavior and indicated that all buyers are different. Marketer recognizes the importance
of heterogeneous demands. Hence, they are keenly interested in sub dividing or
segmenting the market is that each segment can be group of people with similar or
homogenous demand and the enterprise can offer tailor- maid marketing mix for each
market segment.
The marketing segment is a meaningful buyer group having similar wants.

Segmentation is a customer oriented marketing strategy. Market segmentation gives
formal reorganization to the fact that wants and desire of consumer are diverse and we
can formulate a specific market offering to specific category or segment or the market so
that supply will have best correlation with demand. Varied and complex buyer is the root
cause of market segmentation.
GACL also has done market segmentation by considering two different areas.
Firstly on the basis of geographical area and secondly on the basic of consumer.
 On the basis on consumer segmentation, GACL has divided the market into three
segments.
1. GOVERNMENT 10%
2. CONTRACTOR SEGMENT 15%
3. GENERAL PUBLIC SEGMENT
(i) Institution 13%
(ii) Trade 62%
1. GOVERNMENT
10%
15% 2. CONTRACTOR
(i) Institution
62% 13%
(ii) Trade
1. Government segment:
Govt. & semi govt. agencies are the largest consumer contribution about
25-30% of all India cement consumption. special quality cement is asked at time
for railways ,ONGC, and irrigation department etc.
2. Contractor :
It is the second largest & very efficient segment in cement marketing of
builders generally purchase in a large quality so price & credit policy
plays a vital role for this segment.
3. Trade segment :
It covers the biggest segment which cover about 60% of Gacl market it is
segment of retailers where brand identification quality of the product play
very important role.
4. Institution :
This segment covers the industrial units and public trusts.so relationship
plays big role for this segment.
 Based on the geographical segmentation, there are two parts:-
1. MUMBAI
2. AHMEDABAD.
Mumbai covers the area of Maharashtra, Madhya Pradesh and Rajasthan. While
Ahmedabad covers the regions in end surrounding Gujarat.
All the districts of Gujarat as well as other states are regularly visited by sales
representative. The vice president (Marketing) at Ahmedabad has to keep coordination
with all the regional offices situated at Rajkot, surat, Baroda, Bhavanagar, Mumbai.
Month wise planning programmes are done.
Dispatching of products is controlled by the cement manufacturing association

(CMA). Thus the even segmentation has helped GACL to become the market leader in
cement industry.
CONSUMER BEHAVIOUR
The aim of marketing is to meet and satisfy target customer’s needs and wants.
But knowing customer is very simple. Customer’s may state their needs and wants but act
otherwise. They may not be in touch with their deeper motivation. They may respond to
influence that change their mind at the last minute.
In earlier times marketer could understand consumers through the daily

experience of selling to them. But the growth in the size of the companies and markets
has removed many marketing managers from direct contact with customers. Increasing
manager has led to relay on consumer research for the answer to the question like:-
 Who constitutes the market?
 What does the market buy?
 Why does the market buy?

 How does the market buy?
 Who, when and where does the market buy?
The buyer’s characteristics and decision process leads to certain purchase

decisions. The marketer’s task is to understand what happens in the buyer’s
consciousness between the arrival of outside stimuli and the other buyer’s purchase
decision.
GACL to understand the importance of consumer behaviour. It always tries to

understand the changing needs of consumer. It always manufactures products on the basis
of patterns approved by the consumer.
Moreover the company has got regional offices at Surat, Rajkot, Bhavanagar,
Ahmedabad and Bombay. Where special officers are appointed for remaining constantly
in touch with the consumer in order to understand their needs.
So we can say that good understanding of consumer behavior is the secret of

GACL’s great priority.
PRICING POLICY
Price as an important element in the marketing mix. Arrival at the right selling
price is essential in a sound market. Right price can be determined through pricing
research and by adopting the rest market technique.
A price policy is the standing answer of the firm to recurring problem of pricing.
It provides guidelines to the marketing manager to evolve appropriate pricing decisions.
If competition is mainly on a price basis then each company generally prices its product
at the same level as its competitors.
During the earlier days cement was under the control of government but now it
has been decentralized. Hence the company is free to set its prices it does not mean that
consumer exploitation is possible because there is always cut throat competition in this
field.
Pricing policy formulation is done in this company also. Cost of production,

distribution, sales promotion, advertising and market expenses are all considered while
framing the pricing policies.
The present price of Ambuja Cement is approx is Rs.200 per 50kg bags. GACL
also follows policy of resale price maintenance is that all the retailers are bound to sell
their brand of goods at a fixed retail price decided by them. No retailer can exceed the
limit fixed by the manufacturer.

Also various incentives and discount are provided to the stockiest by GACL in
order to increase their sales.
Thus GACL follows 2 types of pricing policy.
1. Cost oriented pricing :
It is the simplest method for price. It also says as cost plus & target
pricing Generally retailers are using this method. GACL keeps the
following point in mind while deciding on cost base.
In addition to manufacturing cost the added costs are.
 Sales promotion cost
 Distribution cost
 Advertising cost
 Promotion cost
 Other marketing expenditure
2. Competition oriented pricing :

In this policy price is set in accordance with competition prevailing
in the market. This method is applied when there is higher
competition.
In cement market the price of the cement charges time by time. As
the owner of cement manufacturing units associated themselves in
a group there avails high product of price charge, the associated
fixed up price as per cost of the product on, transportation cost,
excise duty , 10% profit etc. hence it plays a vital role in pricing
policy.
Now a days, government has no any control over
the cement prices as a result of this each organization adopts its
own pricing policies. In GACL pricing decision are taken by
consideration on following aspects.
a. Cost of product
b. Add expenses
c. Distribution cost
d. Market conditions
e. Sales production cost
This method is applied where there is high competition in market.
 Credit facility
GACL gives 30 days of credit facility to reputed and regular
agency.
 Discount
GACL gives 2% of cash discount if the payment is done within 1
week.
Promotion Mix
GACL promotion is combination of two strategies i.e.

1. Sales promotion
2. Advertisement
 Sales promotion :
Definition:
To communicate with individuals,groups or organization to
directly or indirectly facilitate exchanges by informing and persuading one or
more audiences to accept and organization’s product.
With the indent of open market cement as commodity is now shifting
towards being new way to convince the customer to purchase their brand. Thy are
positioning their products stressing on specific attribute which customer
consinder as important e.g. strength,reliability water requirement etc. and are
formulating their promotional strategies accordingly.
Objectives to be achieved by the GACL through sales promotion are :

1. to stimulate the buyer for purchasing the product
2. to consider the type of market,competitive condition of market.
3. to give incentive to customers.
4. to enhance the value of the product to the custmer.
GACL adopts various types of sales promotion tools like

discountsmgiftsmand some other incentives and sometimes company send
their dealers and distributors on tour.
GACL has 3 levels of sales promotion:

 at a Dealer level
 at a salesmanlevel
 at a consumer level
1. At a Dealer level :
Company prefers dealer who daels with GACL only.Dealer being the
direct link between the customer and company,sales promotion applied on
them provides fruit full results.
GACL provides following schemesl
o Depending upon sales turn over of a particular dealer,certain
incentive is provided.
o Company arranges film show for dealer & their families.
o Foreign tour is also arranged for them.
o Picnic is arranged for all dealers of a particular region.
o Calendars,diaries etc. are provided to dealers .
2. At sales man level
Different attractive incentives are provided by GACL to its salesman for
increase in sales volume to their target. The target is fixed for each and
every salesman and he is able to achieve it, he will be awarded some gifts
or monetary rewards and thus motivated.
3. At a consumer level :
Gacl explain its consumer about different types of cement. They explain
that what are the other cement and what is ambuja cement. Consumers are
ensured with number of benefits when they use ambuja cement and cash
discount also in certain situation many atimes; consumer also gets like
diaries, ball pens,calendars etc.

GACL occasionally arranges consumer camp so that they can get
information about the company & its product. GACL also arranges
training camp masons,architecture,builders etc.
Thus we can say that sales promotion is not expenditure; it is an
investment which provides a lot of rich divident. Thus it is integral part of
manufacture in efforts.
ADVERTISING
The advertiser or sponsor wants to persuade and induce the reader, viewer or
listener to take some action. To buy the advertise product so that the advertiser can have
profitable sales.
Advertising can be defined as mass paid communication of goods, service, or

ideas by and identified sponsor. It is paid communication because the advertiser has to
pay for the space or time in which this advertisement appears. Advertising appear in the
recognized media such as news paper, magazines, videos, television, and cinema films
etc.
Advertising is non - personal salesmanship performance similar functions like
personal salesmanship. It is silent but forceful salesmanship. It is responsible for creating
and has made possible tremendous industrialization and economic development in many
countries. It is the back bone of modern national and international marketing.
Modern advertising informs, guides, educates as well as protect buyers, so that

they can buy intelligently and raise their standard of living. In the marketing programme
of a business enterprise, advertising is an indispensable tool supplemented by
salesmanship and sales promotion. It is t business what steam, electric or nuclear energy
to the industry. The wheels of industry and commerce cannot move with desirable speed
without the propelling power of advertising.
Cement industry has got many competitors. GACL has got a separate advertising
department. This department fixes the advertising budget for every year.
Almost all the Media like print media, news paper, magazines, periodicals,
outdoor Medias; posters etc are used by GACL for the company’s advertisement.
GACL having its own full fledge advertising staff. GACL has given advertising
contract to private agency named “TRIKAYA GREY “, this agency looks after all the
function regarding advertising. When company wants to advertise its product chart of
advertisement and put it before personnel management. The executives select proper
chart form various options and send it to advertisement through a selected media.
 Functions of trakaya grey
 Designing the advertisement campaign
 Deciding advertisement media and doing media scheduling
 Using through various media
MARKETING RESEARCH AND DEVELOPMENT

Learning more about consumers and dealers and about marketing mix generally is
the heart of marketing research. Marketing research is the systematic and intelligent
investigation or study of the “Who, What, Where, When, Why and How of actual and
potential buyers”.
It deals with research of customers demand e.g.: behavior and attitude of

customers and dealers at the market place analysis of sales data, analysis of market share
of a firm, etc. market research is primarily concerned with investigation, analysis and
measurement of market demand.
Marketing research is directly interested in offering sound alternative solution to

all marketing problems relating to exchange of goods and services from producer to
consumers. Beginning an end of marketing management is marketing research. In the
dynamic economy marketing research acts as the investigative arm of marketing
manager.
In GACL, following items of study and analysis are included in marketing

research:-
 Size of the market.
 Geographic location of customers.
 Demographic description of customers.
 Market segmentation on the basis of age, sex, income, education, nationality,

standard of living etc.
 Analysis of market demand.
 Sales analysis by customers, territories, product.
 Consumer needs wants, habits and behavior.
 Dealer wants and preferences.
 Degree of competition and the market trend.
The company has developed a separate department which carries out marketing
research and development. It even carries out research at regular intervals with the help
of professionals.
It conducts personal interviews as a part of survey method. Where has channel of

distribution, advertising strategy etc. is research by experimental methods?
Improve quality and productivity is the benefit derived from research and
development.

INTERNATIONAL MARKETING
In the last decade of 20th century many companies all over the world have started
developing global marketing plans. Both time and distance are rapidly shrinking on
account of intensive and faster satellite communication, speedy transport and free
financial flows.
International marketing points out that world market are being driven towards a
converging commonality i.e. consumer demand round the world tends to have similar
needs, desires and expectations for the same product. The global product will be
standardized by ISO, indicating total quality management and there will be reasonably
priced to satisfy substantial market segments covering many countries with common or
similar needs and desires.
International marketing follows the same basic principles as domestic marketing.

Marketing principles are common and are applicable weather a marketer sells in Bombay,
Nairobi, New York, Paris or London.
In any market we need the blending of four ingredients of marketing mix so that product,
price, promotion and distribution. We must have a good product, fair price, effective
promotion and proper distribution.
GACL also does international marketing of cement. It has got jetties at Mul-
Dwaraka, Surat, Panvel, and Magdalla. It exports cement to Sri Lanka, South Africa,
Mauritius, and Gulf countries.
CONCLUSION
EVOLUTION OF CHANNELS
Evolution of marketing channels implies evolution of channel members. The

producer must regularly check middlemen performance against such standard as sales
quota, average inventory levels, customer delivery time, treatment of damage and test of
goods etc. the company should recognize reward to middlemen who are performing
properly should be helpful.
Here in Ambuja Cement Ltd sales orders brought by customers through agent and
then comparison is made and decision is taken that who is performing well and who is
performing poor. Consumer is working intimately and regularly with good manner.
FUTURE PLANS
1. Minimizing rejection of product.

2. Maximizing market share
3. Optimizing the use of raw materials
4. Giving maximum satisfaction to the workers as well as customers
5. Increasing export
6. Increasing production capacity.
RECOMMENDATION
Gujarat Ambuja Cement Ltd is profit making company. It works smoothly since
its establishment. Here, the company follows all the principles of physical distribution.
The company follows other processing system, it has own warehouse beside production
department, it has inventory control department as a part of material department etc.
therefore; there is no any recommendation in respect of physical distribution of the
company. However the company is making profit, recommended to the company for the
development of own channel members rather than depending on agents. It gives discount
on sales to the channel members.
Company has a wide market in all over India. I recommend to the company to
develop its own channel members for developing and covering own markets.
Ambuja has always tried to add value at :
1. PRODUCT
Technically superior product
2. Promotion
Clear & effective promotion & advertising
3. Price
Uniform prices & better value
4. Place
Streamlined logistics to give fresh & regular supplies
After sales services
Service increase the value of the entire product to the final consumer . specially in
cement like product being commodity quality doesn’t matter much what matters is
product as per specification and after sales services. Competitors too are very sharp in the
cement industry the only way to differentiate and set a bench mark is the after sales
services
GACL provides services to customer in tremendously helpful way it has created

different departments for that like CUSTOMER SUPPORT department which has
number of civil engineers to provide testing facility and technical support to the
customer.
Recently in earthquake time these engineers has provided technical guidelines in terms of
seminars for topics like consistency and strength in construction and also have provided
construction guidelines to people free of charge.
Direct customer of sales & distribution is Its transporters who are like blood of
sales & distribution who keeps the product moving ambuja has special arrangements for
them. It has set up special canteen and seating facility form them GACL has arranged its
system such that the drivers don’t have to wait more for loading and unloading too at
discharge station . it provides entertainment facility to truck driver to enjoy their wait
time. This is the only reason why truck drivers are happy to work for GACL at low
charges even because they can do more trips in day due to less wait time and GACL
payment to them is on time.
So we can say GACL has mechanized after sales service the major activities done by
GACL as a tool to enhance its after sales services is as follow :
 Set up complaint redress committee of experts.
 Seasonal seminars by technical experts
 Quality exhibitions
 Construction guidelines by civil engineers.
Its concrete testing lab and the enginear’s staff is famous in the whole world. The
Facility provided by this department is show in the browser given in the annexure…..
Supporting activity
Environment control
ACL is spending more than Rs. 5500 million to install the pollution control equipments,
like glass bag house, hot ESP and bag type pulse jet dust collector at various locations, in
addition to this, we are spending around Rs. 10 million per annum to maintain above
equipments.
These equipments are properly operated and maintained continuously to keep the
emission levels much below the norms, specified by Gujarat pollution control board and
central pollution control board.
All the efforts are done to make the atmosphere environment friendly, we have
planted more than 81000 trees in and around the plant premises to maintain the ecology.
Flourishing rose garden set up in the middle of the plant is an evidence of out efforts and
awareness of environment management and control.
The basic control area
 Dust pollution
 Diesel generator
 Thermal power plant
The 3 main type of pollution
1. Air pollution
To control the air pollution through arising from
1. source emission
2. festive emition
to measure it gravimetric dust sampler , personal sampler and IMR Gas
analyzer is used
to control air pollution technique of spreading water, planting and bag filters
at various station in plant and bag filter for inside plant is used.
2. Noise pollution
For measuring the noise level in plant the sound level meter is used.
For controlling it
Noise barriers
For uncontrolled noise personal protecting equipment for every employee
working in plant is used
3. Water pollution

Sewage water reclamation plant (SWRP) Is used and sludge coming out of
it is used as manure in plantation
For drinking water cleaning PH,TDS,HEARDNESS,CLORIDE
CLORINE etc are checked for safe health of the employee.
For controlling ambient quality monitoring of SPM (Suspended particulate Mattel) is
done and steps are taken to control the reparable
I TOO CAN MAKE A DIFFERENCE
Pollution deforestation, green house effect, ozone hole…… Big names for big
problems. But the solutions are not all big & complex.
Small actions can make a difference to these big problems. They alone will not solve
the problem, but they will help.
Show your concern, Show your care.
ACT NOW
To make a difference for our environment.
ENVIRONMENTAL POLICY
Gujarat ambuja cement limited, a large manufacturer of different types of

cements is committed to project environment and achieves sustainable development
through a well structured environmental management system is all the spheres of our
activities at Ambuja Cement plant and captive mines.
We therefore shall strive to:

 Adopt ecologically sound mining technologies and practices, while
optimizing mineral extraction and rehabilitate mined out areas.
 Conserve key resources like minerals, coal, petroleum products, water &
energy, wherever feasible.
 Comply with applicable legal and other requirements.
 Develop and propagate environmental awareness amongst employees,
surrounding community and enable them to adopt environmentally sound
practices.
 Document, implement & maintain this policy at all levels.
We commit for continual improvement & prevention of pollution by setting and

reviewing appropriate environmental objectives and targets. This environmental policy is
communicated to all persons working for or on behalf of G.A.C.L and shall be made
available to the public.
Date: June 09, 2005 DIRECTOR
GUJRARAT AMBUJA CEMENTS LTD.

AMUJANAGAR
QUALITY CONTROL
The quality at ACL plays very important in final product that is the only
element for which only it is claiming the premium price it has got many awards for
constancy & homogeneity in the final product. So quality control is very crucial
For quality controlling shift wise hourly checking is done at ACL (A,B,C
3 shift of 8 hours)stages of sampling is given below.
1. Crusher section
2. Row mill before silo filling
3. Silo to Preheater
4. After clinker formation in DBC (Deep bucket conveyer)
5. Silo to packing
In addition it takes auto sample every 3 minute of 20 second
And composite sample is taken of 24 hours
For the sample checking concentration v/s value it has XRF lab which has machines
namely XRD,XRA,XRF
Instruments used for quality checking
1. Water bath
2. Test sieve
3. Hot air own(L.R.)
4. Comp. Stn. M/c 20 kn
5. Humidity control oven no.1 and no.2
6. Auto clave no.1 and no.2
7. Humidity chamber
Cement production requires 27 +/- degree temperature
And cement dispatch requires 90% humidity so the quality control department
also keep track of it that all the temperature requirement are fulfilled to ensure full
valued product to the final consumer the little deviation from the prescribed
quality is not tolerated at ACL.

QUALITY POLICY
The management & the employers of Gujarat Ambuja Cements Ltd. Are committed to
achieve. “TOTAL CUSTOMER SATISFACTION SYSTEM” in all spheres of our
activities.
We therefore,
 Provide product & services that meet or exceed customer’s expectation

based on agreed specification.
 Build quality into every sphere of our activities for achieving excellence in
organizational performance.
 Do all the activities right the first time.
 Commit ourselves for continual improvement.
 Review our quality management system periodically for its containing

suitability & appropriateness.
We have implemented the above policy by setting appropriate quality objectives

& quality planning & review the same from time to time. This quality policy is shared
with the public.
GUJARAT AMBUJA CEMENT LIMITED

Energy conservation activities
( A ) Energy conservation measures taken
o Modification in preheater cyclones and ducts at darlaght plant to reduce
pressure drop
o Replacement of kiln inlet and outlet seals replacement with seals of
improved designs.
o Retrofitting and replacement of various fans for optimum sizing to achieve
energy efficient operation.
o Variable voltage & variable frequency drives installed on various fans for
speed control to save power.
o Installation of FUZZY logic system for operation of cement mills & kilns.
o Optimization of grinding media patter in cement mills.
o Optimization of water pump and cooling tower operation.
o Replacement of existing metallic fans blades with fiber reinforced plastic
blades in air cooled conditioners.
(B) Additional investments and proposals being implemented for reduction of

consumption of energy.
o Replacement of existing separators with high efficiency separators in

cement mills.
o Installation of high efficiency burners (Duoflex) in kilns.
o Replacements of low efficiency fans with high efficiency fans.
o Increase in cooler stack height to reduce fan power consumption.
o Installation of variable voltage and variable frequency drives on different
fans to save power.
o Modification various ducts in cooler, raw mill, and coal mill to reduce
power consumption.
Total investment on account of this all is estimated at Rs. 7 crores.
Impact of the measures taken above for reduction of energy consumption and
consequent impact on the cost of production of goods :
Measures referred in (A) is expected to result in energy saving of Rs. 3.5

crores per annum and (B) above is expected to result in saving of Rs. 20.5
crores per annum.
The role of R&d section in Ambuja cement

The R&d activity in cement industry is saturated in todays trend tough the ACL is
doing following activities.
1. Land identification for availability of lime stone

R&d department in GACL is located in Kodinar plant only other
regional branches are not having R&D activity. The Holcim
partnership would expand it. For land identification R&D
department will design the Row mix and after lab clinkerlization
and chemical & physical property checking (which is also called
burnability study)it will prepare a report and present it to the
management.
2. Using micro scope Lab

For checking c3s ,c2s,c4af and c3a for checking phases in proper
form and distribution for post settlement of clinker.
3. Using Fuel Lab :

For coal & furnace oil analysis in ACL coal is imported for less
Ash blowing to keep environment free from pollution sulfur
content is checked for that.
4. Using partial size analyzer :
To maintain the heat of hydration to analyze & determine how
cement will behave.
5. Using oil lab:
For checking parameter of oil used to keep environment clean.
The main activity of R&D in any cement company is finding alternate sources
of fuel as they are very scarce in nature. For that ACL R&D has ground nut
husk, rice husk, coconut husk, etc but they are seasonal so R&D is trying to check
the usability of Garbage, cotton stork, jetropha plant leaves, tire crumb , coco
shell , castor cake, fuel brick etc can be used as alternate sources of energy.
Due to increase in price of power a new captive power plant based on multiple
fuels like coal,lignie or agro waste is thanks to its R&d activities which really
adds value to the cement production to the company as well as to the customer
and the society as it is take care of the environment too.
Specific areas in which R&D carried out by the company :

 Fly ash classification and its optimum use.
 Use of alternative fuels in place of coal.
 Coal beneficiation studies carried out for use of low grade coal in future.

Benefits derived as a result of above R&D :
 Conservation of natural resources viz. limestone and coal.

 Reduction in fuel cost by use of alternative fuels.
 Process stabilization and quality improvement.
Future plan of action

Phospho gypsum utilization in cement manufacture.
Increased use of alternative fuels.
Expenditure on R&D
Capital expenditure 15.01

Recurring expenditure 30.21
Total expenditure 45.21
Total R&D expenditure as % of total turnover 0.02 %
Procurement
The procurement is value addition to purchase it is some thing more than
just purchase which just talk about what ,when and how but procurement should
include all the things discussed further in the section.
The procurement process in ambuja cement is systematic as it is process
industry every stage in the process requires approval from the authority.
If material that is to be purchased is less than 200,000 the approval required from
Department head if it is greater than 2,00,000 than the purchase order approval
required from the president.
The main machinery and import related purchase decision is done from
the branch office MUMBAI (kalina) . And specially fast moving items are ordered
locally from the plant level only To minimize the time the freedom given to the
User himself to place the order to the plant level or branch level based on the
emergency of the material. All the fast moving items like lubricant , fuels, welfare
items are ordered from site only this amount in GACL to about 2,50,000.
monthly.The basic raw material & its procurement is done as following
1. Lime stone :-
It is one of the key ingredients of cement. As the company is
situated at the place which have a very rich resources of
limestone. All the requirement of limestone is full filled by the near
by mines, which is owned by the company itself.
2. Gypsum :-
It is one of the waste products of chemical plants. Gypsum is
added to clinker and grinded to form cement, Gypsum is added in
cement in order to increase the settlement time of cement. Gypsum
is added to clinker in the ratio of 95:5 that is 5%
3. Sand stone/silica :-
Silica is added to cement in order to give the strength to the
cement. silica is generally produced from the mines near chotila
area.
4. Red clay :-
This is also one of the raw materials used to produce cement. Red
clay is produced from nageshwari, which is near to Una.
5. Fly ash :-
It is the waste product, which arise from the burned coal from the
thermal power plants. This is one of the raw materials used to
produce cement. It is generally produced from the thermal power
plants of sabarmati & jamanagar.and to reduce the Fly ash cost and
transportation cost of bringing them to the factory ambuja has
established its own thermal power plant to provide electricity to the
factory as well as fly ash to produce PPC. However this amount is
not enough for the factory so it has to buy from outside.
6. Coal :-
It is generally used in preheater & kiln. It is burned inside the kiln
to give high temperature in which the raw material is burned.Coal
is generally produced from Africa through sea route. Coal is even
produced from the coalmines of kutchh.
The procurement department has work in close coordination wit the stores
department and all other department which may any time be the user. And also
from user for the technical advice and supplier. And great help is required from
the Internet , transportation.
For user and supplier satisfaction store department maintain GRN (goods receipt
Note ) when the user ensure that this is the only material which it has indented the
purchaser don’t fanalize and pay the payment so as to reduce the rejection
Indent
In Abuja the Quality, right time fromand
delivery stores department
required amount of availability of
(which include item group no., code
quantity is give more emphasis rather than price. ,approximate price, quantity,
description)
The entire process of the procurement of the material is shown below.
Enquiry to the supplier
Preparation of comparatice
quotation statement from
various supplier quation
Preparing purchase order

Signed by authority &
sendGetting signed by authority &
to the supplier
send to supplier
The entire procurement process take maximum 30 days
Probable Reasons for the delay in the process can be at the following stages
 Getting approval from the authority
 Supplier price quatation
 Courier delay
 User indentation delay.
From the analysis of the entire process of the procurement I can suggest the following
things.
1. To maintain the relationship with supplier for quick replenishment of the order is
very necessary.
2. To minimize the time in the procurement process the firm can place the order to
the supplier via E-mail or Fax rather through courier which the company is doing
right now.
3. company can keep the records of all the department requirements and
consumption pattern so that prediction of the user order can be done and order
can be placed at the quickest time .
4. Up to date record keeping will help in both time minimization and cost
minimization as the supplier wouldn’t be able to replenish the order as when
placed and if require any how they will charge higher prices and have to
compromise with quality too.
5. One most efficient technique in this aspect is rate contract . which means
yearly consumption of fast moving items is given to the supplier and the supplier
maintain the stock on behalf of ACL. which ACL is having but only after holcim
acquisition but contracts are done at corporate level.
6. Keep record and stock of related literature to show to the user for confirmation so
the enquiry time is reduced and cycle time can be minimized.
Value addition at procurement level can be done by following ways
ACL is preparing the worksheet about overall charges and expenses

incurred at various level by different supplier. In that worksheet probable excise , VAT,
and all is calculated. And depending on that whether to purchase locally from Gujarat or
outside that is at branch level is decided. So that cost can be minimized and time can be
saved.and quality product can be achieved.
Some of the name of the supplier is given below

 Indian oil
 Sanjay traders
 Crital firms
 Vicky shop & co.
 Ajit packaging
As said earlier the relationship with the supplier is very vital to have good
communication with supplier the ambuja is ensuring that
 All the suppliers get their payment on the right time,

 Invitation to make presentation about the usage of the product and its properties.
So that product rejection come to the lowest level. And the suppliers new product
also can be highlighted at the proper platform.
 Greeting cards to the main registered suppliers on special occations like diwali
and all.
 Advance payment in case of Govt supplier.
HR support
The companys 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.
Ambuja believes that out of 4 ps the most important is the 5th P that’s PEOPLE
“The equity of a brand can be exponentially liked by rendering qulity service
delivered through people with a positive attitude & right skills.
EQUATION
Effective people = Attitude * (knowledge + skill)
Impact of quality service =
(a thought fill action which fulfills a consumer need ) * people.
As a result, Ambuja is the most profitable cement company in India, and the lowest cost
producer of cement in the world.
GACL Considers human resource as the MOST PRIZED ASSET

The biggest strength of the company has been its human resource.
The company follows a unique,homegrown philosophy of allowing people to set their
own targets and gives them the freedom to achieve them : “I CAN” This philosophy has
spread across all the employees and has been a constant source of motivation for the
people.
From the beginning the company have followed a progressive policy of taken
keen interest in the well being and progress of the people.

To enhance their skills and enrich their experience, the company provides
continuous training these includes workshops, courses, overseas seminars and visits to
cement plants in India and abroad.
The company , from time to time engages competent and reputed organizations to
equip the people with requisite techniques and excerses for personality development and
self actualization
A couple of years ago, the people had introduced in-house conferences by
different disciplines operating managers of a discipline from all the locations come
together in a conference it has become a useful forum for sharing
experiences,ideas,innovations and developmental work undertaken at different locations.
And also a source of bench-marking of best practices. Besides, it brings people closer and
helps them understand each other well.
Finally , the company endeavors to offer them just and fair compensation. As a
step in this direction, the company has granted stock options to its employees and whole
time directors during the year, the sixth in succession..
Ambuja believe this all has nurtured a strong sense of belonging among our
people, and is a driving force in he company’s growth and performance.
TECHNOLOGY DEVELOPMENT
The technology is the main driving force to any Business proper use and
absorption of technology can help a lot to the growing business and fasten the goal
achievements.
Ambuja has used the technology at maximum extent from plant level to distribution even
that is only the secret of success of Ambuja
Ambuja has a totally different department set up for this purpose called IT
department in ADM building. It has set up a website called Online.com for the
management of this information and communication to the dealer network. It has Oracle
& Developer 2000 base entire system.
Every branch in GACL is connected through VAST , Local line for easy communication
and back up purpose.
All the Dumps of the company are also computerized so that uptodate stock
information can be managed and inventory and warehousing cost can optimized. Orders
given by the dealer are grouped geographically befor executing so as to minimize the
transportation cost which plays major role in total cost of cement supply chain cycle.
Orders by the dealer are given by the flat file to direct company’s sales and distribution
department rather on phone where there possibility of some error and misunderstanding
every dealer of ambuja is connected with that network.
Truck khoj.com:
A truck identification and tracking Punching system wherein the concern
parties viz the company, transporter and customer can track their truck and can make
exact approximation that when they will get the delivery.Ambuja is using this technique
However here truck drivers need to punch the card given to them at every booth which
the illiterate truck drivers not concerned of so this technique is not fully utilized but
AMBUJA is in process of implementing it whereas SCL is even not aware of existance if
this system.
 TECHNOLOGY ABSORPTION,ADOPTION AND INNOVATION
 Efforts in brief made towards technology absorption and innovation :

The technology has been fully absorbed. Company’s personnel
from operations, maintenance and developmental activities were
deputed for training through seminars and visits.
 Benefits derived as a result of the above efforts :
Improved quality ,productivity ,operational efficiencies and cost
reduction primarily due to conservation of energy and company
increased addition of fly ash as Govt. allowed to use.
 Information regarding technology imported during last years.
Company has not imported any technology during last years.
Council of logistics management defines logistics as follow.
“The process of planning,implementing & controlling the efficient , cost
effective flow & storage of raw material , inprocess inventory , finished goods & related
information from the point of origin to the point of consumption for the purpose of
confirming customer requirements . “
Infrastructure
Over 40% of the production cost of cement is power. 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
Annual Capacity
Plant Capacity (mn tons)
Gujarat 4.00
Himachal Pradesh/ Punjab 3.00
Rajasthan 1.50
Chhattisgarh/ West Bengal 2.00
Maharashtra 2.00
Total 12.5

Ambujas capacity includes that of Ambuja Cement Rajasthan Limited (ACRL) and
Ambuja Cement Eastern Limited. (ACEL).
Ambuja also has a strategic investment in ACC through its subsidiary Ambuja Cement
India Limited (ACIL)
FINANCIAL PLANNING
Planning is very necessary for the smooth running of the business. The firm
should be able to achieve its objectives by minimizing the use of resources. The process
of management is facilitate when management charts its future course of action in
advance and take decision in a professional manner, utilizing the individual and group
efforts in a coordinated and rational manner.
Once systematic approach for attaining effective management performance is

financial planning. Financial planning indicates a firm’s performance, investment and
requirement of funds during a given period of time, usually 3 to 5 years. It involves the
preparation project or Performa profit and loss account, balance sheet and fund flow
statement.
G.A.C.L. considering the importance of financial planning carries it out. While

doing financial planning, the following steps are involved:-
 Analysis of the companies past performance to assembling the relationship

between the financial variable, and the companies financial strength and
weakness.
 Analysis of the company’s operating characteristic product, market,

competition, production and marketing policies, control system and
operating risk etc.
 Determine the company’s investment needs and choices, given its growth
objective and overall strategy.
 Forecasting the company’s revue and expenses and need for funds based on
its investment and dividend policies.
 Analyzing the financial alternatives within its financial policy and deciding
its appropriate means of rising funds.
 Analyzing the consequence of its financial plans for the long term health and
survival to the company.
 Evaluating the consistency of financial policies with each other and corporate
strategy.
At G.A.C.L they prepare two types of financial plans short term financial plans,
and long term financial plans.
The plan having short duration generally of one month is termed as short term
plan. In the company, it is prepared separately for every month and is known as cash
budget which is compared with the actual result obtained at the end of the month. The
actual results are acquired from cash roll which are prepared daily. On completion if any
deviations are found, they are corrected.
Long term financial plans are generally of one year is that they are prepared
annually. They are comparatively in detail. These plans are of greater importance as they
revel the financial strength of the company.
Ambuja Growth Plans
 Plan to increase capacity by 3 to 4 mn. tonnes in next 2 - 3 years by way of

acquisition, upgradation & brown field expansion.
 Growth to be funded from free cash flows
1) Business Model
 Owned Infrastructure
 Logistic Management
 Premium Brand - Only selling in Retail Markets
 Environment Friendly operations
 Social Corporate Citizen
 Low Cost Cement Producer
1) Infrastructure & Logistic Management
 200 MW of Captive Power Plants

 100% captive power - Reliable & cheap generation
 Large port handling Export of Cement & Import of Coal
 3 Cement receiving terminals
 7 Owned Ships for transporting Cement by Sea
 35% Cement transport by sea - Cheapest Mode
 Largest Exporter of Cement - 15% of Production
Premium Brand
India - A bagged market

Individual home builder - Key driver of demand
AMBUJA focus :
 Best quality cement
 Good packaging
 Strong distribution network
 Customer service

Ambuja Cement - Most preferred brand
- Fetching higher realisation
1) Environment Friendly Operations

2) Use of surface miners - Blast free mining
3) Restoration of mines - green spots & water reservoirs
4) Use of bio-gas, agro waste as alternate fuels
5) Rose Garden & Cement Plants - Co-exist
6) Many International Awards in Environment Management
7) Global Standards for Environmental Measures
8) ISO 14001 for Environment Management System
Corporate Social Responsibility
 Raising Environment Awareness

 Building up of check dams, salinity ingress checks
 Water Harvesting & Ecology Pits - Visit of Siberian Cranes
 Programs for rural healthcare and women development
 Asian CSR Awards 2005 for Environmental Excellence among 94 companies
participating from 16 countries
ANALYSIS
Costing
Particular COST PER BAG

Direct cost 36.5
Indirect cost 18.0
Warehousing 03.0
Bag cost 06.0
Sales cost 5.0
Transporting 20.0
VAT (12.5 %) 21.0
EXCISE 20.0
Dealer discount 06.0
Advertisement cost 04 04.0
Customer service cost 3.5 3.50
Admin expenditure 19.0
Total 162.00/-
Margin 40/-
Selling price (invoice price) 202.00/-
From the above listing it is clear that major part of the total cost is Transportation. Again
it is under control of the company by
CONCLUSION
One of the fundamental underpinnings of the new global integration is the stress
on knowledge intensity and the utilisation of information in economic activity. Within
nearly all forms of productive activity the importance value in the final product reaching
to the customer
The following is the result of my research on value chain system used in GACL.
ANALYSIS OF COMPANY’S VALUE CHAIN
MEASURES FOR COST REDUCTION USED AT GACL
For Inbound Logistics

1. Use of imported coal
2. Continue searching for new sources of raw material availability at near by areas.
3. Basic raw material order placing at center level to take the advantage of Bulk
ordering .
4. Mines in near by areas to reduce the material movement cost.
For production plant
1. High efficiency fans for all process fans.

2. Mechanical conveying in place of pneumatic conveying
3. Six stage low pressure drop cyclone preheater
4. Captive power generation by sets GEB power cost 7.75 per unit while this captive
power plant gives 2.25 per unit.
5. Use of agro waste fuels like Ground nut husk (GNH),rice husk, and different
types of agro waste, baggase etc.
6. Roller press for cement grinding
7. In house energy audit for effective monitoring of energy consumption.
For Outbound logistics
1. Sea transport of loose cement. If transporting in packed bags it can transport

maximum 200 bags in one trip that is 10 tonne per trip but transporting in loose
give 21 to 35 tonnes per trip.
2. Grouping orders areawise to reduce the transportation cost.
3. Established Regional and central sales office to transfer the orders of near by area
so as to minimize the transportation cost.
4. Established own jetty to speeden the export and documestic distribution of cement
5. Using technique of big vehicle to small vehicle to reach at remote area. and
reduce wait time of Big heavy vehicle to be used at other places.
ANALYSIS OF CUSTOMER’S VALUE CHAIN

1. As the cement industry is one of the most energy and power intensive industry
so , GACL is doing the many activities for energy conservation as discussed
above for which it has got awards too which no any competitor is doing.
Which adds value to the final consumer.
2. GACL is the pioneer in thinking about Environment protection & has done
many activities for Environment prevention it has fitted dusting control bag at
every dust producing stage in production plant and has established green city
near by and GACL is using surface miner rather than blasting technique for
environment protection.
3. GACL has performed its corporate citizenship very well. It has built check
dams and temples and many more things for citizens.

4. GACL is providing excellent after sales services to the customer for that it has
establish all together different department of civil engineer for guiding
customer in construction activity.
5. GACL is concerned for giant strength it assures this things to customer

customers that their decision is worth.
GACL always believes in delivering value product to the customer for that it is
doing the following things.
1. Focus on brand name :

“VIRAT COMPRESINVE STRENGTH” ambuja cement has given
more focus on Strength. as any cement manufacturing company is
supposed to do. One of its ad 100-7 = 0 which means if the 7 th
part of the cement is extracted from the concrete that its nothing.
This is thoroughly understood to dealers.
2. Effective differentiation
Ambuja is crating differentiation by the following ways.
 Firstly there was no ad in cement industry the trend started with
ambuja it was the pioneer in giving ad of cement like products.the
fist ad was given in news paper. Now they giving more in sports
events.
 Ambuja is the first in providing engineering services to the
customer as after sales services.
 It is proving many services to the dealer like shocalship & other
supportive programs specially designed for its dealer and treating
dealer as the family members. Its was the first in proving foreign
tours to dealers.
 Its using best quality lime stone in manufacturing of cement to
provide best strength to the customer.
 It has established totally different unit in the plant for controlling
the quality of the produced cement hourly checking is done and
than only given for dispatch.
 It using best quality bags that is HDPE bags to pack the cement
which are reusable .
 It is the first line name in providing ON TIME delivery to the
customer which is very important in cement like product without
which entire activity is worth less.
 It is the pioneer in giving saving concept to the customer.
 Added value in skilled labour.
Thus we can say after entry of ambuja the strength has gone
double.
3. Effective public relation

Ambuja has maintained good relations with the public for that it
has organized many seminars done many things for public welfare
as corporate governance.
4. Price differenciation :
Ambuja has always maintained the premium price which is truly
convinced to the customer by the activities listed above.
It is pricing on the bases of Supply and demand gap.
5. Strong distribution network :
Ambuja has its presents in the entire market in interior level of
villages too. In this area too all are direct dealer and reputed
personality in town.
The value chain or business system map
Cost/benefit analysis porter’s value chain

Supporting activity
Firm infrastructure is good clean
Firm Infrastructure

Human resource management
Technology Development
MARGIN
Procurement
Line Operations
Inbound
logistic Operation
Outbound Marketing Service
logistics & sales
Supply chain management (SCM) is the process of planning, implementing, and

controlling the operations of the supply chain with the purpose to satisfy customer
requirements as efficiently as possible. Supply chain management spans all movement
and storage of raw materials, work-in-process inventory, and finished goods from point-
of-origin to point-of-consumption. The term supply chain management was coined by
consultant Keith Oliver, of strategy consulting firm Booz Allen Hamilton in 1982
Some experts distinguish supply chain management and logistics, while others consider
the terms to be interchangeable.
Successful SCM requires a change from managing individual functions to integrating

activities into key supply chain processes. An example scenario: the purchasing
department places orders as requirements become appropriate. Marketing, responding to
customer demand, communicates with several distributors and retailers, and attempts to
satisfy this demand. Shared information between supply chain partners can only be fully
leveraged through process integration.

Supply chain business process integration involves collaborative work
between buyers and suppliers, joint product development, common systems and
shared information
Successful SCM requires a change from managing individual functions to
integrating activities into key supply chain processes. An example scenario: the
purchasing department places orders as requirements become appropriate.
Marketing, responding to customer demand, communicates with several
distributors and retailers, and attempts to satisfy this demand. Shared information
between supply chain partners can only be fully leveraged through process
integration.
Supply chain business process integration involves collaborative work
between buyers and suppliers, joint product development, common
systems and shared information
The key supply chain processes stated by Lambert (2004) are:

 Customer relationship management
 Customer service management
 Demand management
 Order fulfillment
 Manufacturing flow management
 Supplier relationship management
 Product development and commercialization
 Returns management
Supply chain management system in a firm lead to the coordination and

configuration of supplier and distributor relationships (Network of firms) Which
ultimately lead to competitive advantage. Each firm in the network can benefit when the
preceding principles of the
 Process capacity management
 Inventory management and
 Quality improvement
Thus how the value can be added in the supply chain management system in ambuja
cement company is discussed further in the report. So that following things can be
achieved.
 Quality can be improved
 Time of the entire cycle can be minimized
 Cost of the entire activity can be minimized
 Value to the consumer can be maximized.
The study will include discussion of the role of all the department playing importance in
the chain. And how value can be added at every stage.
Supply chain management system comparison of AMBUJA CEMENT LTD (ACL) with
Saurastra cement ltd. (SCL ) Brand name Hathi cement
Factors of comparison Gujarat Ambuja Cement Saurastra cement Ltd

Ltd SCL
GACL
Sector Production
Area of mines 700 hectors 643 hectors
Mines distance 17 to 20 km 5 to 7 km
Number of surface miner 5 in use 1 (on lease) basically using
blasting
Mines depth 27 meter 6 to 7 meter
Silo capacity (for storage) 8800 tonne 8800 tonne
Power 70 WT DG se for power Using GEB power
with 60 MW capacity
Packing Machine 4 Loading m/c-Auto loader Loading unloading
Unloading manually manually one auto Loader
Sector Sales & Distribution
Infrastructure
Transporter 06 03
Jetty 04 01
Distance factory-jetty 12 km away 17 km away
Ship 07 Not any
Ware house networking Yes No
Bottom discharge system 07 Not any doing manually
Bulker 95 (20% under 20
maintenance)
Price 200 196
Time required to complete the cycle from procurement – sales distribution
Procurement
In cement industry as a whole orders are turn key with delivery schedule
As the procurement process is shown in above sections the time required by both
company at different stage for consumable goods for which company maintains main
max stock is shown below. For basic raw materials orders and relinishments are constant
and done from head offices itself.
Stage GACL SCL

Indent from user department 01 day 04 day
Quotation 15 day 20 day
Purchase order 03 days 8 days
Delivery schedule 30 days 30 days
Stores to user department 02 days 04 days
Total 151Days 221Days
Production

Cement production is a continuous process so time calculation of cement
production cycle isn’t feasible comparison can be done with machine capacity and time
required to move the inprocess material from one stage to another stage that shown as
below.
Machinery used at various Stage Capicity of GACL Capacity of SCL
CRUSHER 500 TPH (TON PER HOUR) 650 TPH

ROW MILL 280 TPH 320 TPH
KILN 185 TPH 160 TPH
CLINKER GRINDER 30 TPH 100 TPH
CEMENT GRINDER 120 TPH 150 TPH
PACKER 120 TPH 250 TPH
Up to clinkerization cement production is continious process so SCL has combined all its
4 plants in coninous process for efficient processing as its having most of row
material(lime stone )
available in bulk from near by mines. The given capacity of ambuja is of its one plant
only however its having 4 plants as mentioned above.
Time required in production process for moving item from one stage to another is as
given below
Stage GACL SCL
Pile – Row mill hopper 10 MIN 12MIN

Hopper to surge bim 3 min 03 min
Bim to storage silo 02 min 02 min
Silo to kiln *DF 02MIN
Kiln to preheater 02 min 03 mn
Clinkerization 15 min 19 min
Cooling 12 min 20 min
Yard DF 10 min
Gypsum adding 15 min 20 min
Storage silo 05 min 05 min
Packer 02 min 05 min
TOTAL 1 hour 6 min 2hrs9min
*DF : Direct feeding

for producing 4200 tonne of cement from both of the company
Sales & distribution
The sales & distribution cycle time of GACL & SCL are as follow
The distribution cycle starts right from where the production finishes so from packer to
destination unloading and reaching back to source. The detail time is as follow.
Stage GACL SCL

Loading the tanker from packer 07 MIN 20
Travel from factory to jetty 20 MIN 28
Wait at discharge station 10 MIN 30
Unloading to silo 15 MIN 20
Travel from terminal to jetty 008 MIN 10
Load in ship 240 MIN 240
Jurney of 600 km(kodinar to surat) 1200 MIN 1200
Unload from ship to silo 330 MIN 330
Return back 1200 MIN 1200
TOTAL 3030 min 3078
ANALYSIS
FINDINGS
From the above time study I found that GACL On total requires 153 days
and 17 hours to complete the entire supply chain cycle where as SCL requires 223 days
to complete the same cycle this difference of 70 days is due to the following reasons :
In procurement the difference is due to
1. Indentation system of SCL is more time taking whenever the user department
want to order any material the order takes much time to reach to finally purchase
department because of lack of co-ordination.
2. The order placing process in SCL requires much time because every order greater
than 50000 requires approval from the head office. While in GACL only orders
>100000 requires approval from the head office.
In production the material movement difference is due to
1. SCL is having the mines near by that is only 5 to 7 km distance where as GACL is
having the mines in distance of 15 to 17 km so the lime stone movement requires
more time by GACL.
2. GACL is giving direct feeding in some stages so that no need to put the material
in yard. For that 12 minute is saved . whereas SCL is having low capacity
machinery at continuous process stages so up to lime stone size reduction is
simultaneously co ordinated but after that it have to loose time.
3. As shown in the machinery capacity the GACL machine’s capacity is high so it

reduces the time in production however now SCL has combined all its .
In sales & distribution the difference is due to :

1. GACL is having Auto loader to load the cement so it requires less time to load the
tanker whereas SCL is having only 1 auto loader that too of lease so it requires
less time.
2. GACL is having its own jetty at muddwarka only 12 km away from the factory so
transportation time is saved & special dedication given to GACL transport only
(wait time reduction ) so it fasten the process.
3. GACL is having fully equipped owned jetty at muddwarka so unloading time at

destination is also saved due to latest unloading equipment. However SCL is rank
holder in cement export market.
SUGGETION
From the above discussion and my exploration I would like to suggest the following
things to company to reduce the time in supply chain process.
For procurement
1. Company should go for E- procurement to fasten the procurement process orders

can be placed on net online to save the time in couriers and communication.
2. Company should go for more rate contracts with supplier for common purchase
in which the supplier company maintain yearly stock of the material as specified
on specified rate for the specified time on the company’s behalf so that the time in
supplier selection , and negotiation can be saved.
For production
For sales & distribution

1. company should establish strategic partnership with masonry contractors to get
more order on regularly bases to increase the sales and save the time in order
getting process.
2. SCL is more concentrating on export business and for local in saurastra supplies
it mainly uses road transport & in road transport it is facing the problem from
Porbandar truck drivers association it creates for huddles for the company which
slow down the process so it should concentrate more on road transport for even
domestic supply which is really efficient and faster as GACL is using it at its
optimum extent as it is the pioneer in loose transportation of cement . so SCL
should also start domestic transport form sea ways in bulk.
At last I would suggest that company should undergo kazian time study analysis
which analyse each & every activity of the company from every perspective and
suggest which activity should be modified to improve the supply chain cycle & fasten
it.
LIMITATION
1. The biggest limitation of my research project is the time because of time

limit I have concise the scope of the project otherwise value chain and
supply chain analysis include a wide scope .
2. I have compared the infrastructure and time required in supply chain

system by GACL & SCL only which is not sufficient to conclude the best
equipped result.
3. Because of busy schedule with the head of the departments they are able
to allot less time to management trainees for the project guidance so I
have to suffer a lot to get information.
4.
Bibliography
BOOKS
1. MARKETING MANAGEMENT
BY – PHILIP KOTTLER
2. Research Methodology
By -- C. R. Kothari
3. Business marketing management
By – Michael D. HUTT
Thomas W. Speh
8 th edition
MAGAZINES
1. CMA REPORT
2. ANNUAL REPORT - AMBUJA 2005-06
3. SOURCING INSIGHT - OCT 2006
WEBSITES
1. WWW.GUJARATAMBUJ.COM
2. WWW.MEHTAGROUP.COM
3. WWW.CMAINDIA,COM
4. WWW.GOOGLE.COM
5.
ANNEXURE
Annexure 1: Questionnaire for procurement department
Annexure 2: Questionnaire for production department
Annexure 3: Questionnaire for sales & distribution & marketing
Annexure 4: Brochure for customer service
Annexure 5: vehicle trip card
Annexure 6: shipping bill
Annexure 7: INVOICE
Annexure 7: G.R. form
Annexure 8: Flow chart for AMBUJA cement
Annexure 1:
Questionnaire for purchase & stores department
Q 1. What is safety stock maintained is there JIT system in use ?
Q 3. How suppliers are notified for product replenishment is there EDI system in use ?
Q 4. How the relationship with suppliers is managed what steps are taken ?
Q 5. How the lead time can be minimized ?
Q 6. Is there Any constraint in procurement or store ?
Q 7 What co-odination required from different departments for successful working as

purchase department is there for fulfilling other departments need. ?
Q 8 What is inventory level maintained ?
Q9 How cost can be minimized in procurement process ?
Q 10 How the strategic procurement planning is done. ?
Annexure 2 :
Questionnaire for production department
Q 1. What is the status of production compared to capacity ?
Q 2. What can be done for business process reengineering ?
Q 3. What can be done to make mining blast free for environment prevention ?
Q 4. Is MRP(material requirement planning ) done well in advance ? if yes how much

Advance
.Q 5. Import of coal and Furness oil for the last and current year ?
Q 6. Export of cement & clinker for the current and previous year ?.
Q 7 What are the changes in working after holcim acquisition ?
Annexure 3 :
Questionnaire for Sales & distribution & marketing department
Q 1 What are the different ways through which the distribution (modes) of final product
is done ?
Q 2 The process of distribution for different Dispatch modes
Q 3 Who are the suppliers and the customers ?
Q 4 Which Advertising media are used ?
Q 5 What sort of sales promotion is given and at which level ?
Q 6. What efforts and activities are done for marketing research ?
Q 7. What is the advertising budget for last few years ?
Q 8. How pricing is done ?
Q 9 What after sales services are provided to increase the satisfaction of the consumer ?
Q 10 What is the status of planned and actual sale and region wise dispatches for last 2
years ?
Q 11 Constraints in sales & distribution through different modes ?

Q 12 Is there any change working strategy after holcim acquisition ?
Q 13 How differentiation is done with competitors product and how unique value is
created for consumers ?
Q 14 What is the cycle time for dispatching through sea mode ?
Q 15 What sort of support required from other departments to achieve the target &
enhance the quality the sales of the final product ?
Q 16 What is the dispatch status of different segments ?
Q 17 How value can be added in dispatch process at different stage and how price can
be managed and convinced to customer as ambuja is positioned as premium
brand in the market ?
Q 18 Is ambuja having its own channel memebers for distribution or using agents
Q 19 On what bases the modes of transport are decided upon ?
Q 20 Any suggetion to improve the distribution cycle and increse value to final
consumer of the product ?

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A

Winter Training Report At

GUJARAT AMBUJA CEMENT LIMITED

SHRI DRONACHARYA PGCOLLEGE,

1 A report on Ambuja cement Ltd. Analysis of value chain

I, the undersigned Miss KARISHMA A. NATHANI, a student of MBA part

2 A report on Ambuja cement Ltd. Analysis of value chain

Education consists of two aspects theoretical and practical.

Theatrical aspects are covered during classroom sessions through group

So being students of M.B.A we have to undergo practical training at any

I have taken training at “GUJARAT AMBUJA CEMENT LIMITED” – Kodinar

The management of G.A.C.L. gave good response and help me in understanding

In this regard, I visited “GUJARAT AMBUJA CEMENT LIMITED” located at

I specially acknowledge Mr. Mukherjee (S.P.O.), Mr. Sunil Kumar (Personnel

I am very thankful to “Mr.Joshi (HOD) who gave me an opportunity of M.B.A.

I am finally thankful to my parents and my uncle Mr. Shivani who helped me

4 A report on Ambuja cement Ltd. Analysis of value chain

5 A report on Ambuja cement Ltd. Analysis of value chain

6 A report on Ambuja cement Ltd. Analysis of value chain

The manufacturing process at Ambuja is of paramount importance. The process uses

7 A report on Ambuja cement Ltd. Analysis of value chain

My suggestions to the Ambuja Company are

8 A report on Ambuja cement Ltd. Analysis of value chain

So, we can say about the indian economy as

Agrarian to a Service Economy

Future Cement Scenario

 Indian economy expected to grow at - 7 to 8%

9 A report on Ambuja cement Ltd. Analysis of value chain

Gujarat ambuja cement has been acquired by HOLCIM a swiss base

So ambuja have been partnered with Holcim to consolidate the presence in

Salient Features of the Partnership

 Holcim Investments in India through ACIL only

10 A report on Ambuja cement Ltd. Analysis of value chain

In such a situation how the company is managing the supply chain?

Industry history and profile

Cement is considered to be the basic building material today in construction

INDIAN CEMENT INDUSTRY

India is today world’s second largest cement producing country after

Contribution of cement industry to the

12 A report on Ambuja cement Ltd. Analysis of value chain

The industry crossed 127 million tones of cement dispatched, recording an

As the infrastructure development is the best measure of country’s Development Indian

13 A report on Ambuja cement Ltd. Analysis of value chain

G.A.C.L. is considered to be the company in cement industry in Gujarat. The

G.A.C.L. was initially being planned to setup near Mahuwa in Bhavanagar

People of ambuja have achieved yet a another milestone by putting up a 40MW

14 A report on Ambuja cement Ltd. Analysis of value chain

 Ambuja Nagar - Kodinar(Guj)

 Raipur - Madhaya Pradesh

The cement industry continues to face challenges on account of surplus capacity

The following shown is the map of the Gujarat Ambuja Network.

15 A report on Ambuja cement Ltd. Analysis of value chain

It provides employment to nearly 950 people and also provide indirect

The company is having top level position in manufacturing companies. This

17 A report on Ambuja cement Ltd. Analysis of value chain

Name & address of the unit : Gujarat ambuja cement ltd.

Year Of Establishment : September 1986

Mission of the company : To strive for an environment beyond

Belief of the company : Transparency,system and controls are

Investment : In September 1986 Rs.86 crores.

Promoters Of The Company : Mr. Narotham Sekhsaria

Auditors : M/s Dalal & Shah.

Bankers : Bank Of India.