GUJRAT AMBUJA-REDEFINING OPERATIONAL EFFICIENCY

The company believed in doing things in an innovative and unconventional way, so as to reap benefits in new ways,using new methods.

1-EVOLUTION OF GACL FROM SMALL FIRM TO A MAJOR CEMENT COMPANY

The GACL started form 1981 when it started a plant name AMBUJA CEMENT in AMBUJA NAGER, GUJRAT.

In 1995 Ambuja cement's Himanchal unit was started.

In 1996 GACL setup a grinding and packing unit in Punjab & Maharashtra .

In 1997 GACL acquired Modi cement named as Ambuja cement Eastern Ltd.

In 1999 GACL acquired 51% stake in DLF cement and became 4th largest cement company in INDIA .

LOCATION OF PLANT

Backward and Rural Areas:- To take advantage of substantial sales tax and income tax , incentives.

H.P. Plant:- power supply advantage , region is cement deficit , plant closer to mines and Punjab grinding unit.

Chandrapur Plant:- Get sales tax benefit ,coal mines are near.

DESIGN AND IMPLEMENTATION

They modified the existing KLIN according to engineers choice to increases productivity.

They use Australian surface miners to reduce noise and vibration in plant .

Use pollution control equipments.

Computerized process control system.

Zero error electronic equipments.

2- FACTOR RESPONSIBLE FOR GACL SUCCESS

Freight:-The most successful of GACL’s innovative

strategies of cost cutting was idea of sea transportation.

Fuel:- fuel strategy was also cost cutting factor

Power:- they established their own captive power plant

ENHANSING PRODUCTIVITY

Computerized process control system

Increase capacity utilization –they started weekly checking rather then once but many times to check faults .

Run plant continuously for 40 days against industry average of five.

3- GACL’s strategy of cost focus was not market driven company believed in doing things in an innovative and unconventional ways as to reap benefits in new ways using new methods.

it sets new plants wherever it founds cements deficits, use better quality lime stone clay CILICA and GYPMSUM ,innovative energy management.

There are 11500 outlets in Mumbai, Gujarat ,Punjab, M.P., U.P. etc.

SWOT ANALYSISSTRENGTH:-

High quality cement

Good packaging

Strong distribution network

Advanced technologies

Eco friendly.

WEAKNESS:-

Need of more market expansion.

Need of international marketing

Not able to use foreign technologies in full swing.

OPPORTUNITIES:-

Acquisition of DLF cement and ACC ‘s stakes

With increase in G.D.P. growth rate country will need more roads ,ports , houses etc.

They get a chance to set up their plants at the nearest area of mines.

VARIOUS AWARDS WON BY GACL

Ranked as 4TH best managed company in India by Asiamony,in 1996.

National quality award for outstanding pollution control.

Cement national award for best energy performance in industry.

Special expert awards in 1995 and 1996. Various other productivity and mines safety

awards.

THREAT:-

Lenders unwilling to find new cement plant

Drought of many parts of the country have reduced demand from 21% to 11%.

Production cost increases :-due to increases in price of power ,freight ,coal, diesel etc.

Other cement manufacturer company i.e

ACC,L&T etc.

RECOMMENDATIONS:-

Even the price of fuel, freight and power are increasing despite these things future of GACL is bright it’s attention on retail market increasing.

It should enhance its distribution network in south & west.

India’s population affect demand of cement because there is no substitute for “cement”.

QUESTION

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