Seminar Report

on

“Cement Industry-UltraTech Cement”

Submitted in Partial Fulfilment for the Award of the Diploma of

Post Graduate Diploma in Management

(Session 2010-12)

Submitted to: Submitted By:

Faculty Name: Dr.Ajay Pratap Singh Student Name:Anamika Verma

Internal Guide:Dr.Raj Purohit

Roll No:PGD10016

PGDM – I Trimester-Sec-A

DEPARTMENT OF MANAGEMENT

INSTITUTE OF MANAGEMENT STUDIES, NOIDA

A UGC Recognized Institute

A-8B, Plot –C, Sector-62, Noida

INSTITUTE OF MANAGEMENT STUDIES, NOIDA

A UGC Recognized Institute

A-8B, Plot –C, Sector-62, Noida

DECLARATION

I Anamika Verma bearing Roll No PGD10016 Class PGDM-I-(A) of the Institute of

Management Studies, Noida hereby declare that the Seminar Report-108 entitled Cement

Industry-UltraTech Cement is an original work and the same has not been submitted to any

other Institute for the award of any other diploma. The suggestions as approved by the faculty

were duly incorporated.

Signature of Student

Countersigned

Signature of Faculty Guide

ACKNOWLEDGEMENT

I would like to express my deep gratitude to all those who, directly or indirectly made

this project possible.

I have got considerable help and support in making this project report a reality from

many people.

Firstly I would like to thank Institute of Management Studies, Noida for giving me the

opportunity to do this work. I would also like to convey my special thanks to my project

guide Dr. R.S.Raj Purohit, whose endeavour for perfection, innovation and dynamism

contributed in a big way in completing this project. This work is the reflection of his thought,

ideas, concept and above all her efforts.

Thank You-

Anamika Verma

PGDM-I-A

PGD10016

TABLE OF CONTENT

Page No.

INDUSTRY DETAIL 1-4

COMPANY SPECIFIC 5-9

VISION 10

MISSION 10

CODE OF CONDUCT 11-12

MILESTONE 13-14

MANAGEMENT TEAMS 15

PRODUCTS 16-22

MERGERS 23-28

CSR 29-36

SWOT 37-40

SUGGESTION 41

BIBLIOGRAPHY 42

INDUSTRY DETAIL

The Indian cement industry has been on a high growth trajectory for more than a

decade, led by buoyancy in sectors such as real estate and construction. The industry has

witnessed continuous modernisation and adoption of new technologies in recent years.

India is the world's second largest producer of cement after China with industry

capacity of over 200 million tonnes (MT). With the boost given by the government to

various infrastructure projects, road networks and housing facilities, growth in the cement

consumption is anticipated in the coming years.

The modern Indian cement plants are state-of-the-art plants and amongst the best in

the world. The cement industry comprises of 134 large cement plants with an installed

capacity of 173.08 million tonnes and more than 350 operating mini-cement plants, with

an estimated capacity of 11.10 million tonnes per annum, making a total installed capacity

of 184.18 million tonnes in the last fiscal, as per the Department of Industrial Policy and

Promotion's latest data. In order to meet the expanding demand, cement companies are fast

developing new plants. The cement industry is poised to add 111 MT of annual capacity by

the end of 2009–10 (FY 2010), riding on the back of approximately 141 outstanding cement

projects.

According to a report by the ICRA Industry Monitor, the installed capacity is

expected to increase to 241 MTPA by FY 2010-end. India's cement industry is likely to

record an annual growth of 10 per cent in the coming years with higher domestic demand

resulting in increased capacity utilisation.

Housing, Infrastructure and Real estate sectors, with major construction activity in

rural and semi-urban areas through large infrastructure and housing development projects, are

expected to augment the growth rise in cement sector. Demand in this region is being driven

by infrastructure, residential and commercial projects.

Domestic Players

While the Cement Corporation of India, a central public sector undertaking,

comprises 10 units; the various State governments own 10 large cement plants. Among the

leading domestic players in terms of cement manufacturing are-

Ambuja Cement,

Aditya Birla Group (which owns UltraTech Cement),

ACC Ltd,

J K Cement etc

They are not only the foremost producers of cement but also enjoy a high level of

equity in the market. Despite a slowdown in most sectors of the economy, the Aditya Birla

group, the country's largest cement maker, has seen a sharp rise in cement sales in December.

According to figures released by the conglomerate, sales by the group are up 13.36 per cent at

2.82 MT, compared to last year. The Birla group's production of cement for December also

rose, by 14.85 per cent to 2.27 MT.

The other large cement maker, ACC, too saw a jump in sales in December, despite the

slowdown in the realty sector.

ACC reported a marginal rise in its cumulative production for the January-December

period to 20.84 MT, from 19.92 MT last year; sales rose to 20.86 MT from 19.88 MT last

year (2009).

Ambuja Cements Ltd, India's third-largest cement maker, too saw an increase in

shipments in December 2008. Shipments rose 11.8 per cent to 16.62 MT from 14.86 MT, a

year earlier.

Global Players

Rapid urbanisation and the booming infrastructure have lead to an increase in

construction and development across India, attracting even the global players. The recent

years have witnessed a surge of foreign direct investment in the cement sector. International

players like France's Lafarge, Holcim from Switzerland, Italy's Italcementi and Germany's

Heidelberg Cements together hold more than a quarter of the total capacity.

Holcim, one of the world's leading suppliers of cement, has 24 plants in the country

(India) and enjoys a market share of about 23–25 per cent

Italcementi Group, which acquired full stake in the K K Birla promoted Zuari Industries'

cement.

The French cement major, Lafarge which acquired the cement plants of Raymond and

Tisco with an installed capacity of 6.5 MTPA a few years back plans to grow it to 15-30

MTPA in the next 10 years. Till now its manufacturing capacity was concentrated in East

India, but now the company is spreading its wings to the north and south. It is setting up

four greenfield projects in Rajasthan, Himachal Pradesh, north-east and south India, with a

combined capacity of around 5 MT.

German major, Heidelberg Cement has merged Mysore Cement, in which it owns around

54 per cent stake, Indorama, (where it acquired 100 per cent stake in 2008) and its 100 per

cent Indian subsidiary, Heidelberg Cement India.

Installed capacity

The cement industry in India has added a whopping 46 MT capacity in just a little

over three years, taking the total installed capacity to 206.96 MT as on December 31, 2008.

This includes India Cements Ltd's new grinding unit at Vallur, Tamil Nadu with an installed

capacity of 1.10 MT, and UltraTech's plant at Ginigera, Karnataka with an installed capacity

of 1.30 MT.The industry added over 30 MT to its installed capacity in just one year (April

2007–March 2008).

Almost all players of the industry, small to medium to large, have added capacity

ranging between a minimum of 200,000 tonnes and a maximum of 3 MT in the three years

(April 2005 to March 2008), effecting a total addition of 45 MT to the installed capacity by

setting up greenfield projects, and expanding and upgrading the existing plant.

Technological change

Continuous technological upgrading and assimilation of latest technology has been

going on in the cement industry. Presently, 93 per cent of the total capacity in the industry is

based on modern and environment-friendly dry process technology and only 7 per cent of the

capacity is based on old wet and semi-dry process technology. There is tremendous scope for

waste heat recovery in cement plants and thereby reduction in emission level. One project for

co-generation of power utilising waste heat in an Indian cement plant is being implemented

with Japanese assistance under the Green Aid Plan. The induction of advanced technology

has helped the industry immensely to conserve energy and fuel and to save materials

substantially.

India is also producing different varieties of cement like Ordinary Portland Cement

(OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFC), Oil

Well Cement, Rapid Hardening Portland Cement, etc. Production of these varieties of cement

conform to the BIS Specifications. Between April to November 2008, 25 per cent of all

cement produced was OPC, 67 per cent was PPC and 8 per cent was PBFC.

RMC Business

Ready-mix concrete (RMC) is sometime preferred to on-site concrete mixing because

of the precision of the mixture and reduced worksite confusion. The Indian RMC business is

growing by 25 per cent every year. In India only 2–3 per cent cement consumption by cement

industry goes through RMC, as against 60 per cent in developed markets. At present, India

has 200 RMC plants across the country.

JK Lakshmi Cements plans to add five more RMC units to its existing 10 units as part of

its expansion plans at a total cost of US$ 210.53 million.

Lafarge, the world's second largest cement maker, has bagged Larsen and Toubro's RMC

business for US$ 311.39 million. Lafarge will be acquiring 66 concrete plants located

across India, in key markets such as Delhi, Kolkata, Mumbai and Bangalore, with a total

market share of approximately 25%

Binani Cement, Shree Cement and Dalmia Cement are among the new players who have

plans to get into the RMC business in the next five years.

COMPANY SPECIFIC

ABOUT THE ADITYA BIRLA GROUP

A US $24 billion corporation with a market capital of US $23 billion and in the

League of Fortune 500, the Aditya Birla Group is anchored by an extraordinary force of

100,000 employees, belonging to 25 different nationalities. Over 50 per cent of its revenues

flow from its operations across the world

The Aditya Birla Group’s products and services offer distinctive customer solutions

worldwide. The Group has operations in 20 countries - India, Thailand, Laos, Indonesia,

Philippines, Egypt, China, Canada, Australia, USA, UK, Germany, Hungary, Brazil, Italy,

France, Luxembourg, Switzerland, Malaysia and Korea.

In India, the Group has been adjudged “The Best Employer in India and among the

top 20 in Asia” by the Hewitt-Economic Times and Wall Street Journal Study 2007.

Globally the Aditya Birla Group is-

A metals powerhouse, among the world’s most cost-efficient aluminium and copper

producers. Hindalco, from its fold, is a Fortune 500 Company. It is also the largest

aluminium rolling company and one of the 3 biggest producers of primary aluminium

in Asia, with the largest single location copper smelter

No. 1 in viscose staple fibre

The 3rd largest producer of insulators

The 4th largest producer of carbon black

The 11th largest cement producer globally and the 2nd largest in India

Among the world’s top 15 BPO companies and among India’s top 3

Among the best energy efficient fertilisers plants

In India-

A premier branded garments player

The 2nd largest player in viscose filament yarn

The 2nd largest in the Chlor-alkali sector

Among the top 5 mobile telephony companies

A leading player in Life Insurance and Asset Management.

ULTRATECH CEMENT

History

ECC was conceived as Engineering Construction Corporation Limited in April 1944

and was incorporated as wholly owned subsidiary of Larsen & Toubro Limited.

L&T's founders Mr. Holck - Larsen and Mr. Toubro laid the foundation for ECC.

ECC incorporated on 24 August 2000 as L&T Cement Limited

Cement business of Larsen & Toubro Limited demerged and vested in company in

2004

Grasim (Aditya Birla Group) acquired management control in July 2004

Aditya Birla Cement production started in 1998.

Turnover in the financial year 2003 was Rs 4626 crore.

UltraTech Cement, known for its impeccable quality, is today changing the face of

India. The cement has not only built landmark projects like flyovers, bridges, dams, runways,

but has also built everlasting trust in engineers, builders, contractors and individual house

builders.

With a manufacturing capacity of 48.8 million MT annually (2009), eleven integrated

plants, eleven grinding units and five bulk terminals, UltraTech cement is the 8th largest

cement producer in the world.

Its composite product portfolio which, along with UltraTech (Grey Cement) includes

Birla White (White Cement) and Ready Mix Concrete (UltraTech Concrete). Also, an array

of new products - UltraTech Seal & Dry – Total Water Proofing Solution, UltraTech

SuperStucco – Easy to apply Polymer Modified mortar , UltraTech Nubric – strong & eco

friendly brick , UltraTech FixoBlock – extra fine jointing mortar , UltraTech Readiplast –

plaster product makes UltraTech a complete construction solutions company. This ethos is

also reflected in UltraTech Building Solutions – its initiative to bring construction solutions

to consumers under one roof.

With growing demand for cement in the wake of housing and infrastructure boom the

company is set to attain newer heights.

Financial facts

The company is headquartering at Mumbai in India. The company reported

revenues of (`) INR 66,643.30 million during the fiscal year ended

March 2009, an increase of 16.43% over 2008. The operating profit of the

company was INR 13,678.20 million during the fiscal year 2009, a

decrease of 9.73% from 2008. The net profit of the company was INR

9,780.60 million during the fiscal year 2009, a decrease of 3.17% from

2008.

Plant and Machinery

UltraTech Concrete is manufactured at state-of-the-art computerized automatic

batching & mixing plants with contemporary technology. Some of the special features of our

plants are-

1. Entire process is fully computerized, leaving no scope for human errors. All the

control systems are Windows based.

2. Cement and other raw material are checked as per our quality plan.

3. All the raw materials are stacked in separate bins and are stored under cover so that

aggregates are not exposed to direct sunlight and environment pollution.

4. Cement, Fly ash, Slag etc. are stored in separate silos for better control on recipe.

5. Handling of fly ash and slag are done from closed bunkers to silos directly.

6. Separate weigh-batchers are provided for each ingredient like cement, water,

admixtures and aggregates. The weighing is done on sophisticated electronic weigh

batchers. Precise weighing of all materials is done through electronic load cells made

up of special alloys.

7. Homogeneous mixing of concrete is ensured by use of special high-efficiency mixers

like pan-type or turbo-twin shaft mixers.

8. A fully equipped onsite plant laboratory is available at each plant.

9. A Sprinkler system is installed to ensure temperature control of aggregates in hot

weather.

10. In line with Group’s focus towards environment and eco-friendliness all silos are

installed with bag filters and level indicators to avoid any kind of pollution.

11. Processes are in place for effective and periodic maintenance and calibratio n of all

critical components.

12. Laser sensor and moisture control are used for a stringent quality assurance.

13. Well trained and experienced engineers are available at every plant to take care of the

quality of concrete.

PLANTS

Awarpur Cement Works

Gujarat Cement Works

Hirmi Cement Works

Jafrabad Cement Works

Arakkonam Cement Works

Jharsuguda Cement Works

Magdalla Cement Works

Ratnagiri Cement Works

West Bengal Cement Works

Ginigera Cement Works

Overview

Cement is an essential material for today's society because concrete is made from

cement, which is an inevitable element for housing, commercial and infrastructure

development. Measured on a kilogram per capita basis, concrete is 2nd most widely

consumed material in the world, second only to water. Cement manufacturing process will

have -Local impacts (landscape disturbance, dust emission) and Global impacts (CO2, SOx

and NOx emissions).

Because of these impacts, sustainable development has recently become a major strategic

issue for cement manufacturers around the world. Cement industry is giving very specific and

serious attention for managing CO2 emissions.

In 2000 a group of 10 major cement companies collaborated as "working group

cement"(Cemex (Mexico), Lafarge (France), Cimpor (Portugal), RMC (Great Britain),

Heidelbeurg (Germany), Siam Cement (Thailand), Holcim (Switzerland), Italicementi (Italy),

Votorantim (Brazil) has sponsored study under World Business Council for sustainable

development (WBCSD). WBSCD has entrusted this study to an independent organization

namely, Batelle Memorial Institute. The ideas emerged from this study indicate that the

cement industry-

Operates manufacturing or processing facilities in 150 countries.

Has estimated a turnover of USD 97 billion.

Directly employs an estimated 850,000 workers

Mission

To deliver superior value to our customers, shareholders, employees and

society at large.

Vision

"To actively contribute to the social and economic development of the communities in

which we operate. In so doing, build a better, sustainable way of life for the weaker

sections of society and raise the country's human development index."

— Mrs. Rajashree Birla, Chairperson,

The Aditya Birla Centre for Community

Initiatives and Rural Development

CODE OF CONDUCT

The Code of Conduct (hereinafter referred to as "the Code") has been framed and

adopted by UltraTech Cement Limited (hereinafter referred to as "the Company") in

compliance with the provisions of Clause 49 of the Listing Agreements entered into by the

Company with the Stock Exchanges.

Applicability

The Code applies to the Members of Board of Directors (hereinafter referred to as

"Board Members") and Members of the Senior Management Team of the Company one level

below the Board Members, viz. Manager & CEO, CFO and all Unit Heads, Presidents, Joint

Presidents and all other executives having similar or equivalent rank in the Company and the

Company Secretary of the Company (hereinafter referred to as "Senior Managers").The

Company Secretary shall be the Compliance Officer for the purpose of this Code.

Code of Conduct

The Board Members and Senior Managers shall observe the highest standards of

ethical conduct and integrity and shall work to the best of their ability and judgement.

The Board Members and the Senior Managers of the Company-

1 Shall maintain and help the Company in maintaining highest degree of Corporate

Governance practices.

2 Shall act in utmost good faith and exercise due care, diligence and integrity in

performing their office duties.

3 Shall ensure that they use the Company's assets, properties, information and intellectual

rights for official purpose only or as per the terms of their appointment.

4 Shall not seek, accept or receive, directly or indirectly, any gift, payments or favour in

whatsoever form from Company's business associates, which can be perceived as being

given to gain favour or dealing with the Company and shall ensure that the Company's

interests are never compromised.

5 Shall maintain confidentiality of information entrusted by the Company or acquired

during performance of their duties and shall not use it for personal gain or advantage.

6 Shall not commit any offences involving moral turpitude or any act contrary to law or

opposed to the public policy.

7 Shall not communicate with any member of the press or publicity media or any other

outside agency on matters concerning the Company, except through the designated

spokespersons or authorized otherwise.

8 Shall not, without the prior approval of the Board or Senior Management, as the case

may be, accept employment or a position of responsibility with any other organization

for remuneration or otherwise that are prejudicial to the interests of the Company and

shall not allow personal interest to conflict with the interest of the Company.

9 Shall in conformity with applicable legal provisions disclose personal and/ or financial

interest in any business dealings concerning the Company and shall declare information

about their relatives (spouse, dependent children and dependent parents) including

transactions, if any, entered into with them.

10 Shall ensure compliance of the prescribed safety & environment related norms and

other applicable codes, laws, rules, regulations and statutes, which if not complied with

may, otherwise, disqualify him/ her from his/ her association with the Company.

11 Shall ensure compliance with SEBI (Prohibition of Insider Trading) Regulations, 1992

as also other regulations as may become applicable to them from time to time.

Annual Compliance Reporting

Board Member and Senior Managers shall affirm compliance with this Code on an

annual basis as at the end of the each financial year of the Company (as per Appendix I

within 7 days of the close of every financial year).

Acknowledgement of Receipt of the Code

Each Board Member and Senior Manager both present and future shall acknowledge

receipt of the Code or any modification(s) thereto, in the acknowledgement form annexed to

this Code as Appendix - II and forward the same to the Compliance Officer.

Any breach of the aforesaid Code brought to the notice of the Compliance Officer or any

Member of the Board or Senior Management shall be reported to the Board of Directors of

the Company for necessary action.

MILESTONES

1983

Awarpur Cement Works Plant I

1987

Awarpur Cement Works Plant II

1993

Jharsuguda grinding unit

1994

Hirmi Cement Works

1996

Gujarat Cement Works Plant I

1998

Andhra Pradesh Cement Works

Gujarat Cement Works Plant II

1999

Narmada Cement Company Limited acquired

Ratnagiri Cement Works

2000

Bulk cement terminals at Mangalore, Navi Mumbai and Colombo

2001

Grasim acquires 10 per cent stake in L&T. Subsequently increases

stake to 15.3 per cent by October 2002.

Durgapur grinding unit

2002

Grasim increases its stake in L&T to 14.15 per cent

Arakkonam grinding unit

The Grasim Board approves an open offer for purchase of up to 20% of the equity

shares of Larsen & Toubro Ltd (L&T), in accordance with the provisions and

guidelines issued by the SEBI Regulations, 1997.

2003

The board of Larsen & Toubro Ltd (L&T) decides to demerge its cement business

into a separate cement company (CemCo). Grasim decides to acquire an 8.5% equity

stake from L&T and then make an open offer for 30% of the equity of CemCo, to

acquire management control of the company.

2004

Completion of the implementation process to demerge the cement business of L&T

and completion of open offer by Grasim, with the latter acquiring controlling stake in

the newly formed company UltraTech.

2006

Formerly known as Ultratech Cemco Limited. The Group's principal activities are to

manufacture and market clinker and cement in India.

Ultratech Cement Ltd has inducted Mr. Saurabh Misra into the Board as an

Additional Director and appointed Managing Director of the Company.

2007

Ultratech Cement receives order from BIFR.

Ultratech Cement Ltd has appointed Mr Girish M Dave as a Director on the Board of

the Company.

2009

UltraTech to absorb Samruddhi to form India's biggest cement firm

Ultratech to be the lead sponsors of Rajasthan Royals

UltraTech to consider Grasim merger proposal

2010

Ultratech Cement Ltd has appointed Mr. 0 P Puranmalka as Additional Director with

immediate effect.

MANAGEMENT TEAMS

Board of Directors

Mr. Kumar Mangalam Birla, Chairperson

Mrs. Rajashree Birla

Mr. R.C.Bhargava

Mr. G.M.Dave

Mr. N.J.Jhaveri

Mr. S.B.Mathur

Mr. V.T.Moorthy

Mr. S.Rajgopal

Mr. D.D.Rathi

Mr. O.P.Puranmalka, Wholetime Director

Executive President & Chief Financial Officer

Mr.K.C.Birla

Chief Manufacturing Officer

Mr. R.K.Shah

Chief Marketing Officer

Mr. S.N.Jajoo

Chief People Officer

Mr. C.B.Tiwari

Company Secretary

Mr. S.K.Chatterjee

PRODUCTS

UltraTech is India's largest exporter of cement clinker. The company's production

facilities are spread across eleven integrated plants, one white cement plant, twelve grinding

units, and five terminals — four in India and one in Sri Lanka. Most of the plants have ISO

9001, ISO 14001 and OHSAS 18001 certification. In addition, two plants have received ISO

27001 certification and four have received SA 8000 certification. The process is currently

underway for the remaining plants. The company exports over 2.5 million tonnes per annum,

which is about 30 per cent of the country's total exports (2009). The export market comprises

of countries around the Indian Ocean, Africa, Europe and the Middle East. Export is a thrust

area in the company's strategy for growth.

Ordinary Portland cement

Portland blast furnace slag cement

Portland Pozzolana cement

Ordinary Portland cement

Ordinary Portland cement is the most commonly used cement for a wide range of

applications. These applications cover dry-lean mixes, general-purpose ready-mixes, and

even high strength pre-cast and pre-stressed concrete.

Portland blast furnace slag cement

Portland blast-furnace slag cement contains up to 70 per cent of finely ground,

granulated blast-furnace slag, a non-metallic product consisting essentially of silicates and

alumino-silicates of calcium. Slag brings with it the advantage of the energy invested in the

slag making. Grinding slag for cement replacement takes only 25 per cent of the energy

needed to manufacture Portland cement. Using slag cement to replace a portion of Portland

cement in a concrete mixture is a useful method to make concrete better and more consistent.

Portland blast-furnace slag cement has a lighter colour, better concrete workability, easier

finish ability, higher compressive and flexural strength, lower permeability, improved

resistance to aggressive chemicals and more consistent plastic and hardened consistency.

Portland Pozzolana cement

Portland pozzolana cement is ordinary Portland cement blended with pozzolanic

materials (power-station fly ash, burnt clays, ash from burnt plant material or silicious

earths), either together or separately. Portland clinker is ground with gypsum and pozzolanic

materials which, though they do not have cementing properties in themselves, combine

chemically with Portland cement in the presence of water to form extra strong cementing

material which resists wet cracking, thermal cracking and has a high degree of cohesion and

workability in concrete and mortar.

Concrete

Concrete is most vital material in modern construction. It has versatile properties like

easy mould ability, high compressive strength and long lasting durability. These properties of

concrete have made it most popular construction material for all types of civil engineering

works. The latest developments in concrete technology have made it possible to use it in

intricate and architecturally complex structures, requiring high degree of performance and

aesthetic appearance.

In addition to normal concrete, other varieties in use are, high strength and high

performance concrete, self compacting, light weight, high density, fibre reinforced, polymer,

coloured concrete etc.

The ingredients of good and bad concrete are the same. The difference lies in the

technology used for production, transportation and placement. The making of concrete is an

art as well as a science. Science because all the ingredients are proportioned as per the

standard codes of practice to get the targeted strength & durability, and an art because in

addition to accurate proportioning, quality of concrete depends on the way it is mixed,

placed, compacted, finished, cured and protected. Ready mix Concrete (RMC) technology

results in a perfect blend of the Art and Science.

In all the developed as well as most of the developing nations, use of RMC for

construction has made it possible to achieve speed and quality. The advent of commercial

RMC in India is about a decade old, but in recent years it has become the preferred choice of

architects, engineers and consumers.

UltraTech Concrete is committed to provide customised high quality RMC for

ensuring speedy construction.

UltraTech concrete plants are present in-

Mumbai,

Pune,

Nasik,

Nagpur,

Ahmedabad,

Surat,

Gurgaon,

Noida,

Jaipur,

Chandigarh,

Chennai,

Bangalore,

Hyderabad,

Cochin,

Vizag,

Ludhiana,

Raipur

Production

Portland cements are made by grinding a mixture of limestone, clay and other

corrective materials, viz. Lateritic, Bauxite etc. Essential constituents mainly are Lime, Silica,

Alumina and Iron Oxide. The process of manufacturing consists of grinding of raw materials

into fine powder, mixing them intimately and burning in a kiln at about 1400 deg. C. The

resultant product is called Clinker. Clinker is cooled, ground to fine powder with gypsum.

The end product is cement.

Cement

UltraTech Concrete plants use fresh cement directly procured from the state-of-the-art

cement plants mainly through cement bulkers, which in turn is pumped directly into

UltraTech Concrete silos, thus protecting it from the external environment and humidity.

Coarse Aggregates

UltraTech Concrete directly sources the aggregates from selected and approved

suppliers and these aggregates are tested as per IS stipulations at regular intervals for:

Shape, size and gradation (elongation/flakiness test)

Impact value and crushing value test for their strength

Fine Aggregate

UltraTech Concrete directly purchases sand from selected and approved suppliers.

The sand is tested as per IS stipulations at regular intervals for:

Moisture content

Gradation for fineness modulus

Silt content

Water

UltraTech Concrete tests the quality of water as per BIS standards at frequent

intervals and in case the water needs any treatment, water purifiers are used.

Mineral Admixtures

In UltraTech Concrete plants, mineral admixtures are obtained from proven sources

conforming to relevant BIS standards. High-tech facilities are used for collection,

transportation and storage to avoid contamination due to environment and any other source.

Chemical Admixtures

In UltraTech Concrete plants, high quality admixtures are used in concrete during

mixing to improve certain properties of fresh concrete such as workability and setting time.

The admixture is sourced from reputed companies and is tested for compatibility with cement

before use.

Workability of concrete

In UltraTech Concrete, workability is properly controlled through scientific methods

by appropriate dosing of admixtures. Workability is measured (and recorded) for every batch

to facilitate efficient transportation and pumping.

Batching and Mixing

UltraTech Concrete is proportioned using computer aided scientific methods

conforming to relevant standards. Mixing is done through high efficiency pan mixers or twin

shaft vibro-mixers in fully automated mixing and batching plant leaving no scope for human

error. These measures ensure consistent quality in every batch.

Making Good Construction Better

Efflorescense and leaching in concrete

Vibrating Concrete

Cold Weather Concreting

Bleeding in concrete

Hot weather concreting

Fibre Reinforced concrete

Cover for Reinforcement

Curing

Plastic Shrinkage Cracks

General Precautions

Going forward

Industry demand may grow at 9% for the year given the Government initiatives to

boost rural development, infrastructure and housing – all of which provide a growth impetus.

New capacities, which are at various stages of commissioning, will inevitably result in a fall

in capacity utilization from H2FY10 and squeeze margins. Company’s steps in the form of

cement / clinker capacity addition, new thermal power plants and capital productivity should

partially offset the impact on margins.

Company’s Performance

The financial year 2008-09 began under a challenging environment. Rising energy

cost and commodity prices spurred inflation and affected margins. In the second half, the

global financial crises aggravated the situation resulting in a liquidity crunch, a high cost of

credit and a sharp fall in capital markets. All of this resulted in an overall slowdown in the

economy. The Central Government and the Reserve Bank of India adopted a

series of fiscal and administrative initiatives to address the situation. These were in the form

of infusing liquidity in the market by reducing CRR and SLR of Banks, stimulus packages

and release of arrears in wages following the recommendation of the 6th Pay Commission

Award. These measures led to a revival of construction activities in the semi urban and rural

areas during the last quarter of FY09 resulting in an increase in the demand for cement.

During the year ended 31st March, 2009, Net revenues at `6,383 crores grew by 16%

over the preceding year, while Net Profit at ` 977 crores was 3% lower. Effective capacity

utilisation was 96% on expanded capacity. Aggregate sales volume at 18.18 MMT

was up by 6% compared to 17.11 MMT in the previous year.

Company’s sales volume grew by 24%, at 5.31 MMT. Net Sales at Rs. 1,953 crores

was up by 31% compared to ` 1,496 crores in Q1FY’09. Profit before interest, depreciation

and tax at ` 751 crores vis-a-vis ` 472 crores in Q1FY’09 rose by 59% and Profit after tax at `

418 crores as against `.265 crores for the corresponding period in FY’09 increased by 58%.

Strategies Adopted by UltraTech

Promise: Excellent product quality and customer care are the hallmark of UltraTech.

Capitalizing the opportunity of the geometric growth in the housing sector and the

government's thrust on infrastructure.

Right decision at right time

Having excellent Product in hand

Constantly striving to improve and capture more number of market share

Training to Staff

Promotion through movies

Sponsorship

Opinion towards Marketing

Increase frequency of advertisements on T.V., radio, internet and print media.

Increase Strategic Alliance

Increase visibility by campaign and other modes.

Increase number of distributors and agents

Increase number of warehouse

Having micro-planning in place

MERGER

UltraTech Cement With Grasim Cement Arm

After demerging the cement business from Grasim Industries, the Aditya Birla group

has decided to merge the new cement subsidiary with group firm UltraTech Cement Ltd.

Grasim Industries’ decision to restructure its cement assets into a separately listed entity, with

the ultimate aim of merging it with UltraTech’s cement business, is seen in a positive light.

However, while the deal looks beneficial from a long-term perspective, analysts believe that

there are no immediate gains. But, they expect shareholders of UltraTech Cement to gain

marginally from a possible re-rating in the near-term.

Grasim Industries demerged its cement business into Samruddhi Cement Ltd, a

wholly-owned subsidiary of Grasim, as part of its restructuring plan, where Grasim’s

shareholders would receive one equity share of Samruddhi for every one share they held in

Grasim. Grasim has taken the first step towards consolidating its cement business into one

entity, creating a new holding company.

Grasim plans to hive-off its cement assets, excluding its 54.78 per cent stake in UltraTech

Cement, into Samruddhi Cement effective October 1, 2009. The shareholders of Grasim will

get a share each of ` 5 each in the new company, aggregating to 35 per cent (or 9.17 crore

shares), while Grasim will continue to control Samruddhi with a 65 per cent stake (17 crore

shares).

Later, Samruddhi will seek a separate listing, though it will be for a short-period, as

consequent to approval of concerned authorities as well as shareholders of Grasim and

UltraTech, the cement businesses of Samruddhi and UltraTech are planned to be merged to

form India’s largest cement company with an installed capacity of nearly 50 million tonnes

per annum (mtpa). Post merger, Grasim is estimated to have a controlling stake of about 60

per cent in the larger cement entity. The move is designed to ensure Grasim’s majority stake

in, and continued support to, the rapidly growing cement business; while simultaneously,

providing Grasim shareholders direct participation in the pure play cement company.

Whilst Grasim’s commitment to fund growth of cement business remains unabated, the

demerger opens up new choices for financing this growth.” Eventually, it will also help create

a platform for potential consolidation. All of which, should help maximise shareholder value

in the long-run.

Grasim, meanwhile, would continue to focus on its VSF business, which so far

provided a large part of the cash-flows to grow the cement business. Grasim is setting up a

new ` 1,000 crore project in Gujarat, which will increase its VSF capacity by 80,000 tpa.

VSF, along with other businesses accounted for a third of profits of Grasim’s standalone

numbers in FY09. Post demerger, Grasim will operate the VSF and other small business and

have cash and investments worth ` 1,500 crore. Analysts say, its ability to effectively utilise

this cash and operating profits of over ` 700 crore annually, will have a bearing on the value

accretion for its shareholders, going ahead.

What needs to be watched is the merger ratio between Samruddhi and UltraTech.

While the market is currently according similar valuations to the cement business of the two

companies (adjusted for the different face values), in Grasim’s case, a few believe that there

could be some upside in the form of a slightly better valuation given to Samruddhi due to its

larger size and ownership of a profitable white cement business. While the move is in the

right direction, the concerns regarding the potential over-supply situation and soft cement

prices loom large for the cement industry. In this context, many analysts believe that Grasim

is fairly valued while they see gains of up to 10 per cent for UltraTech from current levels.

Ultratech Cement Ltd has announced that Ultratech Cement Ltd has received a

consolidation proposal from Samruddhi Cement Ltd a wholly owned subsidiary of Grasim

Industries Ltd. Grasim has proposed to de merge its cement business to Samruddhi pursuant

to a scheme of arrangement under Sections 391-394 of the Companies Act 1956, subject to

necessary approvals.

The board of directors of UltraTech Cement approved in-principle the merger

proposal of group company Samruddhi Cement with itself.

The company has appointed Bansi Mehta & Company for the valuation exercise and

UBS as investment banker.

The company expects the valuation report by the first week of November, and the

board will meet again as soon as it receives the report. The entire process will be completed

within seven to nine months. Extra care will be taken to protect the interest of Grasim

investors. Clearing misgivings that Grasim would be reduced to a holding company of the

cement business, Mr Birla said the re-rating of UltraTech post-merger would more than make

up for the loss, if any, incurred by Grasim shareholders.

While UltraTech commands an enterprise value of $110 a tonne, Ambuja Cement and

ACC are rated at $147 a tonne, while it is $160 a tonne for Shree Cement. UltraTech will be

re-rated substantially post-merger.

Grasim will continue to invest in cement through UltraTech though the mode of

investment (debt or equity) will be decided at the appropriate time. The group does not

propose to add any new business to Grasim as it wants to retain its identity of a textile

company.

Facts About Company

The Aditya Birla Group is the ninth-largest cement producer in the world

Incorporated on 24 August 2000 as L&T Cement Limited

Cement business of Larsen & Toubro Limited demerged and vested in company in

2004

Grasim acquired management control in July 2004

Together with Grasim, one of the largest cement producers in India

Name changed to UltraTech Cement Limited with effect from 14 October 2004

Narmada Cement Company Limited amalgamated with UltraTech in May 2006

Cement business of Grasim demerged and vested in Samruddhi Cement Limited in

May 2010

Samruddhi Cement Limited amalgamated with UltraTech Cement Limited in July

2010

UltraTech Cement To Purchase 80% of Star Cement (Dubai)

The UltraTech Cement Ltd, a subsidiary of Aditya Birla group, will purchase around

an 80% stake in Dubai’s ETA Star group-owned Star Cement Co. Llc. for an enterprise value

of US$ 380 million (` 1754 crore).

It is understood that the purchase will be made through UltraTech Cement Middle East

Investments Ltd, a wholly owned subsidiary of UltraTech Cement. The enterprise value is the

market value of the entire business, including debt.

Adesh Gupta, a whole-time director and chief financial officer at Grasim Industries

Ltd, which controls 60% of UltraTech Cement, said that “It will be more than 51% (stake), it

will be very high stake. It will give an exit route for the ETA (group),”

The remaining stake in Star Cement will be held by the local partner with whom ETA

had built cement plants. The acquisition is set for completion later this week. The deal will

give the US$ 30 billion Birla group direct access to the West Asian market, until now served

through exports, Gupta said. “We used to export more than 3 lakh t of clinker to the UAE

market. So (now), instead of exporting clinker from India we have our own plant.”

“UltraTech has gone there for the long-term and they will save freight costs because

they no longer have to export clinker to that market,” said Rupesh Sankhe, an analyst at

Mumbai-based brokerage Angel Broking Ltd.

UltraTech is also planning a 15MW coal-fired power plant in West Asia at a cost of

` 5 crore per MW to manufacture cement at cheaper cost.

The United Arab Emirates (UAE) cement market has a total capacity of 30-35 million

t, but demand slackened after a real estate slowdown hit Dubai last year. Star Cement has an

annual capacity of 3.2 million t.

The Aditya Birla group has already demerged Grasim’s cement business into a newly

listed subsidiary Samruddhi Ltd, which in turn will be merged with UltraTech. Grasim

currently has ` 2500 cash on its books.

Adesh Gupta declined to say how the company would use the cash but said it will

invest ` 1000 crore by fiscal 2013 to more than double its capacity in viscose staple fibre,

which is used to make fabric and garments in Gujarat.

CORPORATE SOCIAL RESPONSIBILITY

CSR is defined as operating a business that meets all exceeds the ethical, legal,

commercial and public expectations that society has of Business.

Making a difference

Before Corporate Social Responsibility found a place in corporate lexicon, it was

already textured into company’s group's value systems. As early as the 1940s, their founding

father Shri G.D Birla espoused the trusteeship concept of management. Simply stated, this

entails that the wealth that one generates and holds is to be held as in a trust for their multiple

stakeholders. With regard to CSR, this means investing part of their profits beyond business,

for the larger good of society.

While carrying forward this philosophy, company legendary leader, Mr. Aditya Birla,

weaved in the concept of 'sustainable livelihood', which transcended cheque book

philanthropy. In his view, it was unwise to keep on giving endlessly. Instead, he felt that

channelizing resources to ensure that people have the wherewithal to make both ends meet

would be more productive. He said, "Give a hungry man fish for a day, he will eat it and the

next day, he would be hungry again. Instead if you taught him how to fish, he would be able

to feed himself and his family for a lifetime."

Company strategy

Taking these practices forward, ultratech chairman Mr. Kumar Mangalam Birla

institutionalised the concept of triple bottom line accountability represented by economic

success, environmental responsibility and social commitment. In a holistic way thus, the

interests of all the stakeholders have been textured into company’s group's fabric.

The footprint of their social work today spans 2,500 villages in India, reaching out to

seven million people annually. Their community work is a way of telling the people among

whom they operate that they care.

Projects are planned after a participatory need assessment of the communities around

the plants. Each project has a one-year and a three-year rolling plan, with milestones and

measurable targets. The objective is to phase out their presence over a period of time and

hand over the reins of further development to the people. This also enables them to widen

their reach. Along with internal performance assessment mechanisms, their projects are

audited by reputed external agencies, who measure it on qualitative and quantitative

parameters, helping them gauge the effectiveness and providing excellent inputs.

Their partners in development are government bodies, district authorities, village panchayats

and the end beneficiaries — the villagers. The Government has, in their 5-year plans, special

funds earmarked for human development and they recourse to many of these. At the same

time, they network and collaborate with like-minded bilateral and unilateral agencies to share

ideas, draw from each other's experiences, and ensure that efforts are not duplicated. At

another level, this provides a platform for advocacy. Some of the agencies they have

collaborated with are UNFPA, SIFSA, CARE India, Habitat for Humanity International,

Unicef and the World Bank.

Company focus areas

Ultratech rural development activities span five key areas and their single-minded

goal here is to help build model villages that can stand on their own feet. Their focus areas

are healthcare, education, sustainable livelihood, infrastructure and espousing social causes.

Education

Balwadis (pre-school)

Adult education

Non-formal education

Continuing education

Scholarships for girls, merit and technical education

Health and family welfare

Mobile clinics - doctors visit once a week

Medical camps - general and issue-based

Health training and awareness

Sanitation - toilets, training, smokeless

chullahs, biogas

Safe drinking water

Mother and child health

Reproductive health

Awareness building

Sustainable development and livelihood and

agriculture and watershed development

Self-help groups

SGSY - dairy, readymade garments, jute project,

basket making, aggarbati making, bee keeping, durrie

making.

Check dam

Irrigation

Land development

Soil and water conservation

Pasture development

Social forestry/ plantation activities/ nursery

Horticulture

Farmer training

Infrastructure development

Roads

Dams

Community centres

Houses

Culverts

Electricity

Health centres

Water channels

Schools

For Employees

Relocation benefit:

a) Reimbursement of cost incurred for movement of goods

b) Travel Reimbursement

c) Relocation Allowance

Children’s Education Reimbursement

General Reimbursements

Hospitalization Insurance

Accident Insurance

Company Vehicle Leasing Scheme

Holidays & Leave Policy

Company Transportation

Leave encashment

Advance Salary

Awards and reorganization

Social events

Loans without interest

Employee Scholarship (with/without bond)

Employee Compensation

Sponsorship (Sports)

Parental Care

Discounts and Coupons

For the Environment

Committed to sustainable development, to meeting the needs of the present without in

any way jeopardizing the welfare of future generations.

Business strategies consciously factor environment conservation as a major principle.

Plants are ISO14001 Environment Management Systems Certified and adhere to

OHSAS 18001 standards.

Awards In the Field of CSR

2010

Mrs. Rajashree Birla, Chairperson, Aditya Birla Centre for Community Initiatives and

Rural Development, was awarded the Global Golden Peacock Life Time

Achievement Award for Community Development for the year 2010 for "Outstanding

Contribution Towards Community Development and Social Welfare".

Hindalco and Birla White declared winners in the Golden Peacock Awards for

Corporate Social Responsibility 2010 by an eminent international jury, headed by

Justice P.M. Bhagwati, the erstwhile Chief Justice of India.

The Aditya Birla Centre for Community Initiatives and Rural Development teamed up

with Columbia University's research centre, the Columbia Global Centers' Earth

Institute in Mumbai, to become its principal partner. The Earth Institute's goal is to

help achieve sustainable development primarily by expanding people's understanding

of the earth as one integrated system.

Hindalco wins Amity International Business School’s, ‘Amity Corporate Excellence

Award for Corporate Social Responsibility’

2009

Grasim's pulp and fibre division won the highly prestigious Asian CSR Award. The

Asian CSR Awards, Asia's Premier CSR Awards program, is a project of the Asian

Institute of Management, Manila.

Rajiv Gandhi Award for Eminence in Social Field, 2009 was conferred on Mrs.

Rajashree Birla by Mr. Jyotiraditya Scindia (Union Minister of State, Commerce &

Industry) on 19 August 2009. The award recognises Mrs. Birla's pathbreaking work

among the poor, more so in India's villages, carried out through the Aditya Birla

Centre for Community Initiatives and Rural Development.

Vikram Cement and Aditya Cement won the Federation of Indian Mineral and

Industries' "Social Awareness Award for the year 2008-09".

In recognition of work that truly exemplifies the highest values of society and

corporate leadership for social responsibility and sustainable development initiatives,

the Reader's Digest Pegasus Star Award was conferred on Hindalco. Mrs. Rajashree

Birla who spearheads all the Group's social projects received this much coveted award

on behalf of Hindalco from Mr. Arun Jaitley, MP, Rajya Sabha, on 21 January 2009

in Delhi.

2008

The President of India, Mrs. Pratibha Patil conferred the much coveted Rotary

International Polio Eradication Champion Award on Mrs. Rajashree Birla in an

elegant function at the Rashtrapati Bhavan (Delhi), attended by the Chairman, select

Rotarians and WHO officials

2007

The Aditya Birla Group was honoured with the India Today Group's Readers Digest

Gold award in recognition of the work that truly exemplifies the highest values of

society as well as those of Reader's Digest. The award was received by Mrs.

Rajashree Birla, Chairperson, Aditya Birla Center for Community Initiatives and

Rural Development, at the Pegasus Corporate Social Responsibility Awards 2007

function.

Hindalco was awarded the CII - Sorabji Green Business Centre "National Award for

Excellence in Water Management 2007".

2006

Hindalco awarded the Greentech Safety Silver Award for its outstanding safety

performance during 2005-06.

2004

Grasim, Nagda, received the FICCI Annual Award 2003-2004 in recognition of

corporate initiaitve in rural development

Aditya Birla Chemicals (India) Limited, Rehla, Jharkhand, received the FICCI

Annual Award 2003-2004 in recognition of corporate initiative in family welfare.

Indal won FICCI Award 2002-2003 for 'Corporate Initiative in Rural Development'

2003

The Group is ranked 16th in India's first ever survey of 'Great places to work in',

published in Business World magazine. The Group's joint venture concern, Birla Sun

Life Insurance, is ranked 9th in the same study

The Group is ranked 20th in a study on the 'Best Employers in India', conducted by

Hewitt Associates and Business Today.

2002

The Group received The Economic Times' "Corporate Citizen" of the year award.

SWOT ANALYSIS

SWOT analysis is a strategic planning method used to evaluate the Strength,

Weaknesses, Opportunity, and Threats involved in a business venture. It involves specifically

the objective of the business venture and identifying the internal and external factors that are

favourable and unfavourable to achive that objective.

Strengths:- characteristics of the business or team that give it an advantage over others

in the industry.

Weaknesses:- are characteristics that place the firm at a disadvantage relative to

others.

Opportunities:- external chances to make greater sales or profits in the environment.

Threats:- external elements in the environment that could cause trouble for the

business.

Identification of SWOTs are essential because subsequent steps in the process of

planning for achievement of the selected objective may be derived from the SWOTs.

The aim of any SWOT analysis is to identify the key internal and external factors that

are important to achieving the objective. These come from within the company's unique value

chain. SWOT analysis groups key pieces of information into two main categories:

Internal factors – The strengths and weaknesses internal to the organization.

External factors – The opportunities and threats presented by the external

environment to the organization.

SWOT ANALYSIS OF ULTRATECH CEMENT

Strength

UltraTech Cement Limited (UltraTech) is India-based one of the largest cement

manufacturing company. The company along with its subsidiaries is engaged in the business

of manufacturing, marketing, distribution and sales of the cement and cement related

products. UltraTech’s other cement related products are ready mix concrete and cement

clinker. The product portfolio of the company comprises Portland cement, Portland blast

furnace slag cement and Portland Pozzolana cement. The company also exports cement and

clinker to countries around the Indian Ocean, Africa, Europe, and the Middle East. The

company has an annual cement production capacity of 18.2 million tones. It is a subsidiary of

Grasim Industries Ltd. The company operates two subsidiary companies namely, Dakshin

Cement Limited and UltraTech Ceylinco (P) Limited. The company is headquarter at

Mumbai in India.The company reported revenues of (Rupee) INR 66,643.30 million during

the fiscal year ended March 2009, an increase of 16.43% over 2008. The operating profit of

the company was INR 13,678.20 million during the fiscal year 2009, a decrease of 9.73%

from 2008. The net profit of the company was INR 9,780.60 million during the fiscal year

2009, a decrease of 3.17% from 2008.

Strengths of UltraTech are as follows-

Better quality

Long relationship with customer.

Maintains a world class infrastructure.

Market share.

Large distribution network.

Proper research and development.

Strong financial backing

Weakness

Everyone looks up to a visionary leader to understand the possibilities tomorrow

holds. And you have a greater responsibility to bear when you are India’s largest cement

company.

In the present day context, UltraTech is playing an important role in the infrastructural

development of the country. No wonder, UltraTech’s every creation is a window to

tomorrow. And an effective communication was needed to reflect the same.It was quite a

daunting task for Interface Communications, the advertising agency for UltraTech, to get the

right mix of emotions and technological superiority that appeal to everyone right across IHBs

to architects and large commercial establishments.

The weaknesses of UltraTech are as follows-

Delay in supply.

Inconsistency of Supply.

Insufficient manpower

Opportunity

When you view India through a prism, its multi-faceted refractions are awesome,

unique and partly distressing. A multiethnic, multi-religious, multilingual, multi-cultural

diverse democracy, rich in its distinctive heritage — India is, indeed, captivating. Our

democracy resonates throughout the world. Moreover, the way in which India has

transformed itself from a colonial, agri-based backwater economy into an independent,

modern, knowledge-driven one is the stuff of case studies at the best-in-class business

schools the world over. While the youth leader must appreciate these facets, he or she must

have a thorough understanding of the different strands that go into the weave of India. The

partition in the aftermath of our freedom struggle has left a scar, as has the divide in the name

of God. India is a country of extreme paradoxes. We are reckoned as a nation of tremendous

opportunities and, yet, it is a reality that India is a place of perpetual struggle. We have large

tracts of our country that have yet to witness any economic advancement.

Company should-

Develop new marketing areas.

Sign more MOUs with government regarding supply of cement for Government work.

Maintain the position of competition in the market.

Threats

Just a few years ago, the Aditya Birla Group bought over the cement business of L&T

for around ` 2,200 crore. L&T allowed its name to be used for about a year. O.P. Puranmalka,

Group Executive President, Grasim Industries, and Chief Marketing Officer, observes that in

a very short time the company had to establish a new brand name in the minds of the people

and use the L&T mind space. The task was Herculean. Explaining the strategy behind the

new brand name, Mr. Puranmalka said: "We wanted to capture the gene code of L&T in the

new brand name. So we commissioned research on customer perception about the L&T

Cement brand. Of course, we were very sure in our minds that L&T Cement epitomised

engineering prowess, technology quality and modernity."

In step with its global agenda, the cement business of the Aditya Birla Group, is

orchestrating a contemporary brand makeover. With UltraTech Cement, the Aditya Birla

Group has established itself as not only the most respected domestic player but also among

the global leaders in cement.

UltraTech has strong competitors like ACC, LAFARGE, AMBUJA Etc., although

the Brand Equity of ULTRATECH CEMENT is AT PAR with ACC and LAFAGE, to

maintain the same continuous follow-up in all respect is necessary.

The Ultratech cement has to adopt necessary strategies to compete with strong

competitiors in order to retain its market position and the goodwill in the market.

SUGGESTION

On the basis of above study carried out by me,the following suggestions are

submitte:-

To increase the sales of Ultratech Cement in such area there is a need of time to time

demo program, seminars & meetings.

There is a need of more promotional activities specially in sub dealer and outside

Bhagalpur area.

Time to time offers should be provided to the customer from our Ultratech company.

Need to available all the construction parts, material and tools our distributor office.

Ultratech Company should be change the colour of PSC bags.

The company must improve its supply so as the demand for the cement can easily be

met.

It must target the rural markets as they are providing a good marketing opportunity

these days.

BIBLIOGRAPHY

http://www.ultratechcement.com

http://in.reuters.com/

http://bilumi.org/Main/?gclid=CIub5da1z6QCFVJB6woddHPrEA

http://www.adityabirla.com/social_projects/overview.htm

http://www.google.co.in/url?sa=t&source=web&cd=10&ved=0CD4QFjAJ&url=http

%3A%2F%2Fwww.tejwebworld.com%2Fultratech-cement-merger-with-grasim-

cement-

arm%2F&rct=j&q=subsidiary%20of%20ultratech%20cement&ei=4Oq1TIUfyqVwkI

_s6gg&usg=AFQjCNE6036915loMbkHBFho7b3plsE13Q&sig2=3STan-PQcNAK-

u1etgqsIg