MANAGEMENT PRACTICES ON LAFARGE SURMA

CEMENT LTD.

BASED ON THE YEAR ENDED 2009OF COMPANY ANNUAL REPORTAND PRACTICAL EXPERIENCES

MANAGEMENT PRACTICES ON LAFARGE SURMA CEMENT LTD.

Prepared for Dr. Maj (Retd.) Khondaker SafizzamanFaculty, FBS,BUP.

Prepared By1. Md. Mozzamel Haque Bhuiyan; Roll no.-E400412. Syed Adnan Parvez Iftekhar; Roll no.-E400423. Hossain Md ABAD; Roll No.-E400434. Shafi Samiur Rahman; Roll No.-E40044

Lafarge Group

Founded on 1833 in Ardeche,France by Joseph-Auguste Pavin de Lafarge as a limestone mining company

Now, The Lafarge group is the

World leader in Cement �

No. 2 worldwide in Aggregates & Concrete�

No. 3 worldwide in Gypsum�

Lafarge Group

Operating in 78 countries

Employing 78,000 people� 2,013 industrial sites worldwide� 15,9 billion Euros in Sales�

Lafarge Surma Cement

Lafarge group started it’s business in Bangladesh as Lafarge Surma cement on 1997

Lafarge Surma cement is registered in 2000 under the Company Act,1994 in Dhaka

The project started with an investment of € 280 Million, which is one of the largest foreign investments in Bangladesh

The factory is located on the Northwestern bank of Surma river near Chatak

The raw material which is Limestone is supplied from Megalaya province in India via a Long Belt conveyor

Lafarge Surma Cement

17 km Long Belt Conveyor

The only cross border Long Belt conveyor of the world

2nd largest long belt conveyor of the world

Composition of Share Holders

58.87

9.98

4.99

3.02

2.7520.39

Surma Holding B.V ADB

International Finance Corporation Sinha Fashion Ltd.

Islam Cement Ltd. Other Shareholders

PLANNING

9

Goals of Lafarge Surma Cement Ltd

► Consistent growth over the year,

► Growth must be sustainable,

► Committed to ensure quality materials,

► Make others feel the differences,

► To export our material in international market meeting the national demand,

► Innovation and contribution to the market with new idea, services.

Corporate planning

The Strategic goals of Lafarge group are

Be among the best industrial companies in safety

Provide our customers with innovative products and solutions to push forward the boundaries of construction

Committed to sustainable development

11

Health & Safety: Our No 1 priority

Mission�

Zero accidents and zero occupational illnesses

Be amongst the safest companies worldwide�

Goals

LTI frequency rate (including sub-contractors) divided by 2 every 3 years

75% of our Business Units meet the strict criteria for membership of Lafarge’s H&S Excellence Club by 2015

12

Health & Safety: our No 1 priority

Visible and strong commitment of our leaders�

Continuous development of employees’ competency and behavior�

Implementation of common rules and standards�

Full integration of health & safety within our processes�

Best practices and experience sharing with the world’s best performers�

Recognizing Business Units with strong health & safety performance�

PLANNING TO ACHIEVE THE GOALS

�

13

Research: A Competitive advantage

Mission�

Goals�

Inventing tomorrow’s construction solutions �

Reducing net CO2 emissions per ton of cement from 1990 to 2010 by 20%

achieving €3 billion annual sales in new products by 2012

14

Research: A Competitive advantage

The Group devotes 1% of its total annual sales to research and technology. More than 50% of its research is focused on sustainable construction

Started LAFARGE RESEARCH CENTER in 1990 to achieve the goals. Now, it has over 6 research facility all over world

Annual Budget for R&D is more than €150m

Plans to achieve the goals

15

Research: A Competitive advantage

Achievements

Lafarge used more than 2 million metric tons of waste as a replacement for non-renewable fossil fuels in 2009

Our alternative fuel usage rate reached 11% in 2009

By the end of 2009, the Group had succeeded in beating its target one year ahead of schedule, achieving a reduction of 20.7%

An average of 20 new technologies are patented each year from 2005 to 2010

16

Committed to Sustainable Development

Goals

Sustainable industrial development in long term

By end 2010 reach a rate of 85% of quarries with a rehabilitation plan complying with Lafarge standards.

By end 2010, all our quarries will have been screened according to criteria validated by WWF international.

Mission

17

Committed to Sustainable Development

Planning

Developing biodiversity index to monitor and track ecological changes at the Group's quarries and sites.

Develops dialog with local residents, associations and experts to identify the best location for quarrying

Performs an environmental impact study which pays close attention to biodiversity at each stage of the quarry's life (from extraction to rehabilitation).

If a project turns out to be dangerous for the environment, it is put on hold or special measures are taken. These could include: transferring fragile species to a safe place, closing part of the site, designating the site as a nature reserve.

Sustainability Ambitions 2012

In 2000 Lafarge group has established a set of goals it set for itself to be achieved by 2012

Each year all the BU’s get a set of goal to be achieved by the end of the year

After Each year a international firm makes a survey group wide to determine the progress made each year

According to that report the goals for next year is set and mistakes are corrected

Sustainability Ambitions 2012

20072008200920102011201220132014201520160

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6Production Capacity (in mil MT)

Production Capacity (in mil MT)

SuSTainabiliTy ambiTiOnS 2012