Organization Structure And Processes

Ultratech Cement: Aditya Birla Group

Group No: 10 (Section B)

Group Members:

Parth Patel MBA/09/083

Arghadeep Hazra MBA/09/062 Instructor: Prof. Amit Gupta
Kritika Pant MBA/09/072
Siddhartha Barua MBA/09/094
UltraTech Cement Limited, part of Aditya Birla Group founded in 1983 and based in Mumbai is the
cement flagship company of the Aditya Birla Group. A USD 8.0 billion building solutions powerhouse,
UltraTech is the largest manufacturer of grey cement, ready mix concrete (RMC) and white cement in India.
It is the third largest cement producer in the world, excluding China. UltraTech is the only cement company
globally (outside of China) to have 100+ MTPA of cement manufacturing capacity in a single country. The
Company's business operations span UAE, Bahrain, Sri Lanka and India.

UltraTech is a founding member of Global Cement and Concrete Association (GCCA). It is a signatory to
the GCCA Climate Ambition 2050 and has committed to the Net Zero Concrete Roadmap announced by
GCCA. UltraTech is focused on accelerating the decarbonisation of its operations
Business:

Ultra tech Cement:

UltraTech provides a range of products that cater to the various
Product Portfolio: aspects of construction, from foundation to finish. This includes
Ordinary Portland Cement, Portland Blast Furnace Slag Cement,
 Grey Cement Portland Pozzalana Cement, White Cement, Ready Mix
 White Cement Concrete, building products and a host of other building
 Concrete solutions. Cement is sold under the brands ‘UltraTech, UltraTech
 Building Products Premium and Birla Super.’ White cement is manufactured under
 UltraTech Building Solutions the brand name of ‘Birla White’, ready mix concretes under the
name of ‘UltraTech Concrete’ and new age building products
under the names of ‘Xtralite, Fixoblock, Seal & Dry and
Readiplast’. UltraTech Building Solutions is a retail format that
caters to the end consumer providing a variety of primary
Geographic presence and manufacturing Units:

 World- class integrated manufacturing units: 24 (23 in India and 1 outside)

 231 RMC plants in India across 100 cities
 29**(25 in India and 4 international) Grinding units and one clinkerisation unit
 8 Bulk packaging terminals (sea + rail)

Ultra Tech’s India Presence

Research and Development:

 Ultra Tech has central R&D centre which received NABL accreditation in 2018
 R&D centre is using modern data analytics such as AI/machine learning (“ML”) for optimising
manufacturing processes as a part of digitalisation initiatives.
 Collaboration with international agencies like Institute for the Semi-Arid Tropics (ICRISAT)
 Collaboration with IIT-Chennai, NIT-Rourkela, and IIT-Delhi this year. In terms R&D investment,
revenue expenditure for the year is 11.61 crores.

Sales and Distribution Network:

 The three-level distribution channel of UltraTech Cement occurs as Manufacturing -> Agent ->
Wholesaler -> Retailer and finally end user.
 UltraTech Cement has 90,000+ dealers and retail networks all over the country and has a presence in more
than 80% of Indian states.
 Ultra tech transport 5.7 million bags every day to 30,000 destinations, fulfilling 30,000 orders daily.
The images below give a holistic view of their logistics and transportation network:
Activities Outsourced:
 Financing Activities: Money contributed by company to finance liabilities are outsourced to a third-
party insurance company
 Recruitment & Payroll: Ultratech cement is one of the leading cement producers globally. A company
named Inducuts has signed a MOU with them for providing services related to Sourcing, Recruitment,
Payroll & Monitoring of various kind of resources.
 IT Services: Certain IT services and infrastructure are outsourced to specialized companies.

In-House Activities: All other core activities like Engineering, manufacturing, R&D, by Ultra Tech is in-
house

Key Processes:
UltraTech Cement focuses on processes geared towards scale, cost optimization, and quality control. It’s
more Centralized and Mechanistic in nature
 Raw material procurement is crucial, ensuring the secure and efficient supply of key materials like
limestone and coal. Production and quality control processes are highly standardized, with stringent
checks to maintain consistent product quality.
 Distribution and logistics operations are optimized for efficiency, managing bulk transportation and
ensuring timely customer service.
 Marketing and branding efforts are centred on building brand equity and maintaining a reputation for
reliability and quality.

Organisational Structure:

Current Structure

 Ultra Tech cement has a Matrix Structure with more hierarchical elements with several layers of
management. This is evident in the presence of a Board of Directors, Executive Committee, and
various business units with their own leadership teams.

 Although the management team is divided into different functional divisions the span of control is
narrower at the top management and wider at bottom in Ultra Tech cement organisation structure

 The company has a strong focus in centralization where decisions are made at top and channelled
down to individual teams and plants.

 The Board of Directors determines the overarching direction and strategy of the company. The
Executive Committee headed by the Managing Director carries the day-to- day running and the
implementation of the strategy. Business unit heads and factory managers have areas of control and
also decision-making autonomy in their respective areas of responsibility.
 Board members consists Chairman KM Birla, Non-executive directors, Independent Directors and
Managing Director Mr. KC Jhanwar.

Physical Structure
 There are different committees for managing decisions. Below snapshot gives an overview of the
same:

The functional management team can be envisioned as below

 Chairman

Board
Management Committes
Team

Managing
Director

Chief
Whole Time Chief Marketing
Manufacturing Chief HR Officer
director & CFO Offcer
Officer

The management team of Ultra Tech cement

Consists of Functional Heads

Procedural Structure:

 Ultra Tech maintains a clear chain of command,

Ensuring an unbroken line of authority from the
top to the lowest levels of the organization.
This structure clarifies reporting relationships and
establishes accountability throughout the organization.

 Ultra Tech has a chain of command system. From the

top to the lowest levels this ensures a clear line of authority.
This keeps the reporting relationships orderly and establishing
accountability within the organisation.

 Ultra Tech organisational structure reflects the commitment it has for fostering a collaborative and a
customer centric culture. This has driven the efficiency of the organisation.

 Due to their high emphasis on operational emphasis the structures are centralized and mechanistic in
nature. Communication is normally top down as strategies are made at highest management level.

 How is technology impacting the organization?

 Ultratech Cement:
Technology is impacting Ultratech Cement in several significant ways, across various aspects of their
operations. Here are some key areas:

1) Sustainability:

The smart integration of artificial intelligence, technology, and data analytics not only improves
operational efficiency but also supports the cement industry’s commitment to sustainability by
reducing emissions, enhancing material efficiency, and aligning with global environmental
objectives.
 The ability to meet current demands without compromising the ability of future generations to meet
their own needs is referred to as sustainability. It entails the prudent and balanced use of resources
while taking social, economic, and environmental aspects into account. The notion of sustainability
acknowledges the interdependence of the environmental, social, and economic pillars and
endeavours to establish a cohesive and durable framework that confers advantages to both the
present and forthcoming generations.

"Cement plants have integrated advanced technologies to adhere to the latest emission standards for
PM, SO2, and NOX emissions. Highly efficient equipment such as bag filters, ESPs, and hybrid
filters has been deployed to effectively manage dust emissions. For NOX reduction, secondary
control measures like SNCR have been implemented. Furthermore, all cement plants have adopted
Continuous Emission Monitoring Systems (CEMS) in accordance with CPCB guidelines," notes Dr.
BN Mohapatra, Advisor and Consultant at UltraTech Cement.

"Similarly, the cement industry has taken the lead in adopting filtration technologies like Pulse Jet
Bag House (PJBH), reverse air bag house, and hybrid filters to control dust emissions from stacks.
The introduction of new fabrics capable of withstanding higher temperatures and challenging
working conditions, coupled with advanced controls and electrical systems, has provided the means
to significantly reduce dust emissions. The cement industry's embrace of these technologies has
played a pivotal role in achieving consistently low stack emissions, measuring at 30 mg/Nm3," he
further emphasizes.

In pursuit of sustainable practices and environmental responsibility, Ultratech is actively engaged in

reducing emissions through the implementation of cutting-edge technologies. The company is
focusing on upgrading coolers, modifying calciners, and incorporating energy-efficient drives to
minimize both energy consumption and its overall carbon footprint. Additionally, Ultratech is
exploring alternative fuels such as biomass and waste-derived sources, aiming to partially replace
conventional fossil fuels and contribute to a more environmentally friendly energy mix. Furthermore,
the organization is committed to responsible water management by implementing smarter usage
systems and advanced wastewater treatment processes. These initiatives are designed to conserve
water resources and underscore Ultratech's dedication to holistic environmental stewardship.

In alignment with the company’s business strategy, it has proactively initiated measures to foster
sustainability and mitigate environmental impact. These endeavours encompass a commitment to
voluntary targets for reducing greenhouse gas (GHG) emissions, a transition from fossil-based
electricity to renewable energy sources, and the widespread implementation of Waste Heat Recovery
Systems (WHRS) across their manufacturing units. Additionally, the company is strategically
optimizing its product mix by incorporating lower cementitious content and giving precedence to the
use of sustainable materials.

In its pursuit of innovation, the company is actively exploring advanced technologies such as Carbon
Capture, Utilisation, and Storage (CCUS), forging collaborations with pioneering start-ups like
CarbonOrO, Coomtech, and Fortera. Moreover, it is contemplating kiln electrification in partnership
with Coolbrook, a step that promises to elevate its carbon reduction initiatives.

Setting ambitious targets, the company’s commitment includes a 27% reduction in net specific Scope
1 emissions by 2032 from the base year of 2017 and the substitution of 34% of electricity with green
energy by 2024. As of its latest progress report, it has achieved a commendable 12% reduction in
specific net CO2 emissions until FY 2022-23 and has successfully substituted 19.27% of its
electricity through green energy sources.

2) Operational Efficiency:

The seamless adoption of mobile app-based solutions by the company’s channel partners and
institutional customers stands out as a significant achievement. This transition from paper-based
 processes to digital platforms has not only saved time but has also remarkably improved operational
speed for all stakeholders involved.

The integration of advanced technologies such as computer vision, augmented reality (AR), virtual
reality (VR), and sensors has greatly supported the company’s safety objectives across its units.
These technologies have enhanced the safety protocols, contributing to a secure operational
environment.

The launch of a multilingual app, Eye-to-Track, for driver partners has garnered widespread
success, with over 50,000 drivers benefiting from its features. This app has played a pivotal role in
delivering a superior experience to the company’s customers. Internally, digital solutions have
improved the planning and sourcing of packaging materials, optimizing central synergies and
efficiency. The procurement process has been streamlined through the adoption of a 'procure to pay'
digital platform, contributing to significant efficiency gains.

The Logistics Control Tower (LCT) has been extended to front-end sales teams through the mobile
app LCT Lite, providing end-to-end visibility and improving collaboration.

Investments in cloud infrastructure have laid the foundation for smart and connected factories.
Embracing Industry 4.0 technologies has empowered its reliability teams with predictive capabilities
and early alerts, contributing to beating reliability records across plant operations. Ongoing efforts to
validate advanced algorithms showcase Ultratech’s commitment to continuous improvement in
process and equipment reliability.

3) Customer Experience:

The development and deployment of UltraTech Trade Connect, a mobile app-based solution, marks
a pivotal step in strengthening Ultratech’s dealer and retailer network nationwide. This innovative
solution serves as a unified interface across Grey Cement, Building Products, and RMC segments,
providing its channel partners with unprecedented ease in managing day-to-day operations. It is
gratifying to note that over 90% of the company’s dealers across India actively utilize this app,
reflecting its integral role in facilitating seamless communication and operations within its network.

To cater to the unique needs of Ultratech’s institutional customers, The company has introduced
UltraTech Customer Connect, a mobile app-based solution designed to optimize site operations
planning. This application offers valuable features, including visibility of supplies and test
certificates, enabling institutional customers to track deliveries and access crucial information in real
time. The inclusion of electronic proof of delivery (ePOD) and streamlined access to finance
documents has significantly expedited and simplified the payment process for the company’s
customers.

While technology offers numerous benefits, there are also challenges:

i) Investment costs: Implementing new technologies can require significant upfront investments.
ii) Cybersecurity risks: Digitalization increases the need for robust cybersecurity measures.
iii) Skilling the workforce: Adapting the workforce to new technologies requires training and skills
development.

CUSTOMERS:

By comprehending the specific needs and preferences of each demographic, UltraTech tactically tailors its
marketing endeavours and product assortments to fulfil their desires. Architects, engineers, and contractors
depend on UltraTech for top-tier cement products adhering to industry benchmarks, while real estate and
infrastructure developers rely on the company for consistent supply and reliability in executing extensive
construction endeavours. Additionally, individual homeowners seeking resilient and dependable building
materials turn to UltraTech for their domestic building and refurbishment projects.

To propel a substantial segment of its business forward, UltraTech Cement employs numerous tactics aimed
at captivating and retaining clientele across its targeted demographics. The corporation places significant
emphasis on the quality and advancement of its products, continually refining and enhancing its cement
offerings to maintain a competitive edge in the marketplace. Through an expansive network of distribution
channels, UltraTech guarantees the widespread availability of its products to clients across diverse regions,
facilitating the execution of both sizable construction undertakings and individual customer needs.
Furthermore, the company invests in marketing and branding endeavours to elevate visibility and cultivate
awareness about its products, fostering customer allegiance and confidence in the UltraTech brand.

Moreover, UltraTech Cement prioritizes the management of customer relationships and initiatives pertaining
to sustainability to further propel its business expansion. By delivering exceptional service and assistance,
including technical support and prompt delivery, the corporation fortifies its rapport with clients,
augmenting satisfaction and loyalty. Additionally, UltraTech's dedication to sustainability resonates with
environmentally-conscious clients, attracting those who prioritize eco-friendly construction materials and
methodologies. Through these concerted endeavours, UltraTech Cement effectively engages with its target
audience and secures a substantial portion of its business from construction experts, developers, and
homeowners alike.

COMPETITION:

Name Last Price Market Sales Net Profit Total Asset

Cap(in Cr) Turnover
Ultra Tech 9945.75 287121.54 61326.50 4916.88 61687.20
Cement
Ambuj 576.20 114412.88 1998543 2553.49 28553.25
Cement
Shree 27630.10 99.691.47 16837.49 1328.13 20827.61
cement

ACC 2628.054 49351.43 22209.97 869.91 143043.00

Dalmia 2127.20 39895.13 132.00 195.00 7848.00

Bharat
Ramco 901.75 21307.67 8135.27 343.54 11280.95
Cement

JK cement 4231.25 32694.13 8998.60 562.54 7912.74

Ambuja Cement: Ambuja Cements Ltd. is among the leading cement companies in India. It is a member of
the Adani Group - the largest and fastest-growing portfolio of diversified sustainable businesses. The
company has many firsts to its credit – a captive port with four terminals that has facilitated timely, cost-
effective, cleaner shipments of bulk cement to its customers. To further add value to our customers, the
company has launched innovative products like Ambuja Plus, Ambuja Cool Walls, Ambuja Kawach and
Ambuja Cement Compocem
Shree cement: India's top three cement producers with an installed cement production capacity of 50.4
MTPA and power generation. We offer multiple product variants and customised packing solutions, our
products meet the requirements of multiple customer segments.

ACC: ACC Limited (ACC) is a leading player in the Indian building materials space, with a pan-India
manufacturing and marketing presence. With 17 cement manufacturing units, 85 ready mix concrete plants,
over 6,600 talented employees, a vast distribution network of 56,000 dealers & retailers and a countrywide
spread of sales offices, it contributes tremendously to the landscape of the country.

Dalmia Bharat: The company operates a manufacturing capacity of 44.6MnT per annum (MTPA), across
15 cement plants and grinding units which are spread across 10 states. With over 38,000 dealers and sub-
dealers, the company presently services more than 22 states and is among the leading players in every region
where it is present in. To scale the business as well as venture into new geographies, both, acquisitions and
greenfield expansions have been key for the company. Dalmia Cement is the only company with at least one
plant in each of the four key eastern states of West Bengal, Bihar, Jharkhand and Odisha.

Ramco Cement: Ramco Cements is one of the established cement manufacturers in India. As pioneers and
trendsetters, we have been at the forefront of developing innovative products and processes for sustainable
growth. Leveraging our manufacturing finesse and a strong R&D team, we have focused on catering to
diverse customer requirements, enabling us to expand our footprint across the country.

JK cement: The Company has an installed Grey Cement capacity of 20 MnTPA as on date, making it one of
the top cement manufacturers in the Country. One of the leading manufacturers of White Cement, globally,
with a total white cement capacity of 1.20 MnTPA and wall putty capacity of 1.2MnTPA.

Effect of Major Government Policies

In India, both the Central Pollution Control Board (CPCB) and the respective State Pollution Control Boards
(SPCB) deal with environmental issues. SPCB regularly inspects the cement plants/limestone quarries to
verify compliance with emission norms. CPCB also inspects the cement plants to check compliance with
emission standards under environmental surveillance squad activities. Cement plants also have to comply
with the charter on Corporate Responsibility for Environment Protection (CREP).
The Indian cement industry must comply with the various environmental acts and regulations notified by the
Ministry of Environment and Forests (MoEF), etc., which covers different spheres of the environment,
encompassing emissions of air pollutants, consumption of water, generation and discharge of trade effluents,
utilisation and storage of hazardous waste, noise generation, utilisation of forest land and wildlife areas.
Specifically, these are as follows:

 Water (Prevention & Control of Pollution) Act, 1974.

 Water (Prevention & Control of Pollution) Cess Act, 1977.
 Air (Prevention & Control of Pollution) Act, 1981.
 Environment (Protection) Act, 1986 (EPA).
 Hazardous Waste (Management Handling & Transboundary Movement), 2008.
 The Forest (Conservation) Act, 1980.
 The Factories Act, 1948.
 The Wildlife (Protection) Act, 1972.
 The Mines Act, 1952.

These Acts/Regulations, together with some of the stringent conditions that are relevant for environment
protection from industrial pollution and imposed by the pollution control boards.
These facets of regulation impact Ultratech in several ways:
 FDI: Cement was one of the government-controlled industries earlier. Partial decontrol was
introduced in 1982 and with 1991 policy reforms, all controls were withdrawn. Today, Government
allows 100% FDI in cement industry. However, due to environment concerns, the cement industry
has to comply to stringent environment rules. These concerns limit expansion of UltraTech due to
capital expenditure constraint
 Carbon emission control: In accordance to Air (Prevention & Control of Pollution) Act, 1981 As
India’s largest cement and concrete company, Ultra Tech acknowledges responsibility in mitigating
climate change and have committed to Net Zero by 2050. For their Climate Change Policy guides
their efforts, and they follow TCFD (Task Force on Climate‑Related Financial Disclosures)
 Minimizing other emissions: Ultra tech strives to ensure our NOx, SOx, and VOC emissions are
well within or below the statutory limits at all of their operating Units. They conduct annual emission
monitoring following the guidelines provided by the Ministry of Environment, Forest & Climate
Change (MoEF&CC) and the Central Pollution Control Board (CPCB).
 Logistical Changes: To control emissions UltraTech has partnered with GreenLine Logistics and
they have added 10 LNG trucks to their diesel-powered fleet, reducing carbon emissions by 40% and
contributing to a cleaner and greener supply chain.

 Hazardous Discharge: Pertaining to Hazardous Waste (Management Handling &

Transboundary Movement), 2008 law Ultra Tech have installed rainwater harvesting systems
across all their Units and have also set up Zero Liquid Discharge (ZLD) plants at several of their
manufacturing Units to enable the reuse of 100% treated water within the Units.

 Energy Management: UltraTech is committed to the RE100 initiative and aim to source 100% of
their electricity from renewable sources by 2050. By 2024, they plan to draw 34% of their power
requirement from green stheirces such as waste heat recovery systems (WHRS), solar, and wind
energy. We are collaborating with the Council on Energy, Environment and Water (CEEW), with a
particular focus on transitioning to 100% renewable power.
 Environmental Impact Assessment: UltraTech is working towards achieving their goal of being
five times water positive by 2024 by improving facilities in regions experiencing water scarcity and
ensuring we replenish more than we withdraw.

 Mining Policy: Pertaining to The Mines Act, 1952 Ultra Tech cement has developed of an integrated
digital platform, use of fuel-efficient equipment and using bio fuel in mining equipment to reduce
carbon footprint. The Indian Bureau of Mines released the list of mines shortlisted for the grant of 5-
star ratings for 2021-22, on its 75th anniversary celebrations. This highest rating is awarded to mines
based on their performance on parameters such as sustainable mining, compliance of production, and
social impact. Thirteen UltraTech mines received five-star ratings.
References:

1. ultratechcement.com

2. Annual Report of Ultratech Cement 2023

3. indiancementreview.com

4. sciencebasedtargets.org

5. moneycontrol.com/competition/

6. ambujacement.com

7. shreecement.com/

8. acclimited.com

9. dalmiacement.com

10. ramcocements.in

11. https://www.navdurgagroup.com/ultratechSite/products/overview.html

12. https://www.worldcement.com

13. Ultra Tech Cement Sustainability Report 2021-2022

14. https://inductusgroup.com/ultratech-cement/