Organizational Study of

ULTRA TECH CEMENT

Group 12:Akshay Mall – B14007

Devang Jesrani – B14021Harish V – B14025

Shoutik Chakrabarti – B14051Siddharth Sahoo – B14052

Udit Kathuria – B14056

Firm History

The Aditya Birla Group is the 9th largest cement producer in the world and the 7th largest in Asia.

Cement business of Larsen & Toubro Limited demerged in 2004.

Grasim acquired management control in UltraTech Cement Ltd. in July 2004.

Together with Grasim, the largest cement producers in India.

PRODUCTSOrdinary Portland cement Clinker 90.50% Gypsum 4.00% Fly ash 5.50%

Portland blast furnace slag cement Clinker 70% Gypsum 6% Slag (Blast Furnace) 24%

Portland Pozzolana cement Clinker 66% Gypsum 4% Fly ash 30%

Ultra Tech Creating Value

Effect of Specific and General

Environment Forces

Over 360 mtpa capacity pan-India, has well over

60 players, including seven MNCs

Just 10 years back, it was a very different story.

Cement was a 160 mtpa industry ruled by just a

handful of players.

What has changed is how fringe players such as Dalmia Cement, Shree Cement and Chettinad Cement have grown to

become formidable entities that the industry

can no longer ignore

The Birla company will need to contend with

smaller players who will want their share of the

growing cement market as a slow recovery starts.

Already the top two players, Holcim and

UltraTech, have conceded market share in terms of capacity from a peak of

around 42% to 30% currently

Figure Showing Capacity of Top 5 Cement Producers Region wise

General Environmental Forces

Goal Setting

Mid-Year Review

Final Appraisal

Summarizing the Data

Unit Head Approval

Final Recommendation to

Corporate

Employees Performance Appraisal

Company’s Performance Parameters

Production and

Capacity Utilisation

Sales Volume

Net Turnover

Sales Realisation

PBIDT Margin

Net Profit

Usage of newer generation, mathematical and computational modeling

Multiple collaborative research projects with national and international institute

Training of Unit and R&D personnel in alternative fuel testing and characterization

Recent Innovations

Business Head

CMO marketing CMO manufacturing CMO IT CMO HR

President

VPs

GMs

Senior VPs

Deputy Manager

Professionals/GETs

President

VPs

GMs

Senior VPs

Deputy Manager

Professionals/GETs

President

VPs

GMs

Senior VPs

Deputy Manager

Professionals/GETs

President

VPs

GMs

Senior VPs

Deputy Manager

Professionals/GETs

Organizational Structure Evolution

Hybrid Structure (Functional + Horizontal)

Business Head

Manufacturing

Project cell

TRC

M&A

Marketing HR IT Planning and Budgeting

Civil Team

Mech Team

E&I Team

PM Team

Procurement Team

Design Team

Env Team

Safety Team

Inspection Team Accounts

TransportSafety Quality Mining Sustainability

Licenses Accounts Finance

Standardization

Hiring practices

Number of manpower needed

Engineering/Design Specs

Proper Layout of Decision Making

Process

Mutual Adjustment

Information Sharing

Dece

ntra

lizati

on

Each Project Site had all depts. Like Marketing, HR, Land acquisiton, Training and Research Centre, Logistics, M&A, Accounts

Cent

raliz

ation

Project sites are given less autonomyProject Cell became the Controlling Body for Project SitesClearly laid down rules for Project Cell Operations & division of powers

Standardization Vs Mutual Adjustment

Evolution: Project Cell Founded in 2008

Decentralization Vs Centralization

Project Cell Structure

EP -projects

Head Engg Head PM

Head Civil

Head E&I

Head Mech

Sr. Manager

Deputy Manager

Professional

Sr. Manager

Deputy Manager

Professional

Sr. Manager

Deputy Manager

Professional

Inspections

PMAccounts Procurement

Environment

Design Draftsman Safety

Plant heads of all plants

FHS of major disciplines

Differentiation Vs Integration

Differentiation

Project Cell, Marketing dept, HR dept, Land acquisiton

dept, Mining Dept, Training and Research Centre,

Logistics, M&A

Wthin depts there were further horizontal

subdivisions

Integration

Many cross functional teams and temporary task forces set up whenever a project

has to be started/developed

No major identifiable integrators or liasions

procedures laid down but not entirely followed

integration across Cells is still work in progress

External Stakeholders

• Environment- UltraTech strives to adopt an eco-friendly approach across all areas of its business operations.- UltraTech is one of the earliest proponents of alternative fuel usage, waste heat recovery and other environment friendly practices in the country.

• Community- UltraTech core belief is to actively contribute to the social and economic development of the communities on which they operate- UltraTech believes in building a better, sustainable way of life for the weaker sections of society and raise the country’s human development index through inclusive growth of rural areas

Internal Stakeholders

• EmployeesUltraTech believes in employee empowerment, providing employees the independence to utilize their expertise to make decisions that promote quality consistency and deliver better value.

• ManagementUltraTech encourages its management to inculcate the values of integrity, commitment, passion and speed to implement seamlessness in the organization's functioning.

Connected Stakeholders

• CustomersUltraTech believes in providing a one stop shop to meet the end consumer’s primary construction needs by implementing a retail format involving the existing dealers as partners in this initiative.

Stakeholder Analysis

Inter-organizational Linkage Mechanisms

UTCL has developed healthy relationships with companies

like HAPBCO, GDCL, L&T, ThyssenKrupp, ABB, Siemens

and various design consultants, suppliers of coal, coal ash, rice husk, bauxite,

ferrous oxide etc.

UTCL would like to try and minimize its dependence

on external parties for supply of scarce

resources and rather find ways to ensure that these

suppliers always supply these scarce resources

without much fuss.

Symbiotic Relationships

Thank You