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AMBUJA CEMENT LIMITED
AMBUJA CEMENTS LIMITED (AMBUJA CEMENT)
– A CASE OF ENVIRONMENT STEWARDSHIP
ANAND KUMAR SINGH roll # 09 PRABHU JEET SINGH roll # 34
THE COMPANY……………………Ambuja Cement started as joint sector company of GIIC and Narottam Sekhsaria & Associates in 1981Later, buying out GIICs stake, company became a private
sector venture.The company is the most cost efficient cement
manufacturer in the country. Innovation in utilizing measures like sea transport, captive
power plants, imported coal and government incentives.Major player in export of cement.Now access to 14.8 million tons annual capacityThird largest cement manufacturer in the country.Cement plants located in Gujarat, Rajasthan, Punjab,
Himachal Pradesh, Chattisgarh, West Bengal and Maharashtra
Has a grinding unit in Sri Lanka.
Performance over 5 Years………(Rs. Crores)
2004 20052006
(18 Months)
2007 (12
Months)
2008 (12
Months)Sales 1968 2606 6286 5705 6235Operating Profit
587 799 2247 2239 1954
Cash Profit
509 714 2168 2163 1922
Profit before Tax
384 519 1842*** 2712*** 1970***
PAT 337 468 1503 1769 1402Gross Block
3782 3827 5177 5928 7654
Net Worth
2013 2172 3484 4655 5669
Debt 1270 1127 865 330 289Cash EPS (Rs.)
28 5.28 14.29 14.26 12.62
EPS (Rs.) 19 3.46* 10.09* 11.61* 9.21*Dividend (%)
80 90** 165 175 110
Capacity-Million Tons
12.86 13.30 16.30 18.50 22.00
Production- Million Tons
10.37 12.80 22.63 16.88 17.75
Ambuja Cements was set up in 1986. In the last decade the company has grown tenfold. The total cement capacity of the company is 18.5 million tonnes.
Its plants are some of the most efficient in the world. With environment protection measures that are on par with the finest in the developed world.
The company's most distinctive attribute, however, is its approach to the business. Ambuja follows a unique homegrown philosophy of giving people the authority to set their own targets, and the freedom to achieve their goals. This simple vision has created an environment where there are no limits to excellence, no limits to efficiency. And has proved to be a powerful engine of growth for the company.
As a result, Ambuja is the most profitable cement company in India, and one of the lowest cost producer of cement in the world.
The Firsts & the Bests……………Environment protection measure that
conform to the worlds best. 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.
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. Ours a bulk transporting system via the sea. Making us the first company
to introduce the concept of bulk cement movement by sea in India.
THE COMPANY……………………Parameters Compound Annual
Growth Rate %Capacity 20Sales 29Net profit 35Net Worth 30Return to shareholders 25Weighted AverageEBIDTA Margin %
33
ISSUE….In 1970s and 80s, cement plants in India seen
as : In popular perception, Cement Industry
badly PollutingDirty noisy places full of dust, cement powder and other
suspended particulate materials.
Ambuja Cement emerged as environmental stewardship in India.
The promoters of Ambuja Cement
resolved to change this outmoded, impression,
“We want to build the best Cement Plant in the world in terms of
Technology, Environmental Stewardship, Employee Welfare and Community Well Being”.
CEMENT SUSTAINABILITY INITIATIVE (CSI)
adopted the Cement Sustainability Initiative-Environmental Stewardship.
more sustainable future to meet the expectations of stakeholders
focus on corporate environmental responsibility and stewardship.
innovative and proactive engineering and technology for environmental problems.
Triple Bottom line to design and apply environmentally innovative engineering practices.
CSI launched in 2009by World Business Council for Sustainable Development(WBCSD).
The Agenda for Action:Climate protectionFuels and raw
materialsEmployee health and
safetyLocal impactsInternal business
processesFurther, plants,
quarries and transport operations impact the local ecology.
High level carbon dioxide emissions.
Other issues: emission reductionuse of fuels and raw
materialsemployee health and
safetylocal impacts on land
and communities, and internal business
processes.
ENVIRONMENTAL ISSUES IN CEMENT MANUFACTURING PROCESS
Green House Gas Emissions 5% of global anthropogenic CO2 emissions Average intensity of carbon dioxide emissions – 222 kg of c/t of
cement. Main environmental issues associated with cement production :
emissions to air and energy use.from:
o Chemical process of making clinker (52 per cent ),o combustion of fossil fuels in the kiln (36 per cent), o Indirect emissions from purchased electrical power (12 per cent) Air Pollution – Dust Emission
Release from the kiln exhaust - Source of dust emissions. Compounds – all extremely hazardous to air breathing terrain life
forms.
Nitrogen Oxides Nitrogen oxides (NOx) are generated from fuel combustion at high
temperatures.
ENVIRONMENTAL ISSUES….contd… Sulphur Dioxide
Sulphur dioxide (SO2) from both cement raw materials and fuels. Emissions to water
Number of wet process kilns has reduced considerably. Water used for preparation of raw material slurry. Water is also consumed in the cooling of equipment. Warm the ecological balance further.
Alternate Fuels Alternative fuels Environmental benefits of using alternative fuels include”
Reduced consumption of nonrenewable fossil Lower greenhouse gas emissions Avoidance of disposal requirement for by-products and wastes.
Rehabilitation of Land to be committed to restoration, rehabilitation of sites once mining
ended.
Global Cement SectorGlobal cement production in 2003 was 1.94
billion tonsIndia – second largest
• – accounted for 6.20% of the production.
CHINESE CEMENT INDUSTRYworld’s largest cement producer China spent about $250 billion on infrastructure while (India spent $35 billion)very small, scattered both geographically & in
ownership.Chinese output in vertical-shaft kilns (v/s Rotating
cement kilns) Low technologyLabour intensive shaft-kiln plants.80% produced by small enterprises.China laws Modelled after US or European legislation to deal with air pollution , solid waste, water pollution
etc.
INDIAN CEMENT INDUSTRY……..Triggered by partial decontrol of the cement
industry in 1982.Full decontrol in 1989.
Mature and world class industryProactive in adopting technological advancementsWorld Leader in Technology Adoption, Information
Sharing and Energy Conservation.Ninety three percent (93%) total industry based on
modern and environment friendly dry process technology.
INDIAN CEMENT INDUSTRY…….contd…Induction of advanced technology helped
conserving energy & fuel.Substantial savings in raw materials.Utilization of low grade limestoneContribute towards increased profitability
coupled with conservation of limestone deposits
Reducing greenhouse gasesEffect economy in energy consumption.
:
INDIAN CEMENT COMPANIES AIM AT
Use of cheap alternate fuels.Efficient dust collection systemsElimination of transfer points in material
conveying circuitsAdoption of modern maintenance practicesBest of our industry matches quite well with
world standards in terms of energy (India 665 against 690 of Japan)
Pollution norms (SPM of 40 mg/NM3 in India against 20 of Japan)
But average performance of the Indian industry is lagging behind
AMBUJA CEMENTS LIMITED (AMBUJA CEMENT)
AN ENVIRONMENT STEWARDSHIP Position of inspirational leadership.Progressive in adapting to innovationTo improve the technologyProcesses at their free will with the visionary
directions from the founders.
COMMITMENT TO SUSTAINABLE DEVELOPMENT
Sustainable Development:Environmental concerns are texturedAll manufacturing processes and business decisionsCorporate mission-Ambuja cement 2000, reads as follows:
The company would strive for an environment of beyond compliance in plants and mines
to raise environmental awareness in the neighbouring community.
Adopt environmentally sound technologies For optimum utilization and conservation of natural
resources. Vision 2000 identified key issues, opportunitiesAction to be integrated into its management framework.
Ambuja cement is committed to……Implementing an ISO 14001 certified EMSReducing CO2 emission per ton of productReducing consumption of virgin raw material Recognizes that profitability & social
awareness are not antagonistic but interdependent.
Established the Ambuja Cement Foundation (ACF)
Community development in the surrounding areas
Rural development schemesEmpowering the stakeholders (villagers) to
help themselves.
TOWARDS WORLD CLASS STANDARDS……………..
CEMENT MAJOR In terms of productivity but also promoting continual improvement of environmental performance, energy efficiency and resource conservation and Spurred people into higher efficiency
innovative practices and technology in production process
Use of Selective Mining Technique
Use of alternative raw materials and natural cementing material
Whole of life Approaches
Cost Effective transportation also led to Environmental Friendly movement of cement consignments.
TOWARDS WORLD CLASS STANDARDS……………..Water ManagementWater Treatment MeasuresSewage Water Reclamation plantRecycling and reuse of materials Using alternative fuels and reusing waste
materials, including petroleum coke (per coke), waste oils and used solvents- environmental stewardship.
Ambuja Cement’s efforts for Energy Conservation
Corporate Safety & Heath PerformanceExposure to dust and high temperaturesContact with allergic substancesNoise exposure
AWARDS : ENVIRONMENTAL TRACK RECORD OF AMBUJA CEMENTFirst Prize for Environmental Management System
(EMS) by Gujarat Pollution Control Board in 1991.Nation’s First Award on Environmental
Performance by Government of India in 1992.“Gold Star Eco-rating” by Tata Energy In 1999, First cement company to have been conferred
Quality System as per ISO: 9002.Government of India 1991-92 through Rajiv Gandhi
national Quality Award.National Award for the second best Environmental
ExcellenceRajiv Gandhi Environmental Award for Clean
Technology for the year 2002-03.
AWARDS : contd…….Best Environment Manager from the Centre for
Science and environment (CSE)Ropar grinding unit awarded “National Award
for Prevention of Pollution” for the year 2002-2003.
Company’s pioneering efforts – use of high volume fly ash concrete by ACI and CANMELT, Government of Canada.
Company’s mines awarded various prizes and recognitions by the Directorate of Mines Safety.
Best Corporate Citizen by FICCI.“Excellence in Cost Reduction” for the year
2003.CAPEXIL accorded “Special Export Promotion
Award” for the year 2002-2003.
Environmental Stewardship at Ambuja Cement……
Innovative practices and technology in production process
Using selective mining techniques.Recycling and reusing materials.Using alternative raw materials like blast furnace slag
and fly ash, byproducts generated from steel manufacturing and power stations, among others.
Using natural cementing materials such as pozzolonaUsing alternative fuels and reusing waste materials,
including petroleum coke (per coke), waste oils and used solvents.
Cement producing it is an energy and resource intensive process.
more efficient use of natural resources and energy, and engaging with local issues in emerging markets.
Meet the expectations of stakeholders and maintain their “license to operate” in communities across the world.
Process innovations which achieve greater resource/energy efficiency and long-term cost savings to reduce environmental impacts.
ENVIRONMENTAL MANAGEMETN DIVISION PRIME CUSTOMERS
Our Sensitive Customers
Surrounding Community
Regulatory Bodies
Environmental Auditors
Plant Operation Department
ProductionElectricalMechanicalCivil
Mines & Geology Department
Commercial DepartmentLand/ACFHorticultureRaw MaterialPurchase & Stores
AMBUJA CEMENT FOUNDATION (ACF)Extensive programme of rural development and community
development for the villages surrounding its plants.bring about all-round development make people self-sufficientafforestation and water/energy conservationparticipation of villagers and local government bodies.
Community development in the areas of: Water management Roof water harvesting Health care and education Agricultural extension and increased self-employment Environmental conservation Adult education and many more activities.
Govt. of Gujarat has appointed ACF as a Project Implementing Agency for executing Integrated National Watershed Project in Jaffarabad Taluka, Gujarat.
Helped Ropar (Roopnagar) District of Pubjan to become 100% literate.
THE FUTURE…………………………..Set the trend for
‘beyond compliance’Continuously working to improve
environmental performance
Incorporate environmental factors into planning decisions
Monitor activities impacting surrounding environment
Comply with environmental laws and regulations
Invest in capital equipment with state-of-the-art technology
Restore the environmentEngage effectively with
its local communitiesStrategies to effectively
communicate its progress with various stakeholders
Provide information on the issues that concern them
Recognizes that there is also need for innovation in techniques for engaging local communities
In empowering and developing employees
Profoundly
ANAND KUMAR SINGH roll # 09 PRABHU JEET SINGH roll # 34