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Heidelberg Cement
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With the acquisition of Italcementi in the second half of 2016, the Group has more than doubled
its installed capacity making it one of the top 10 players in India. The enlarged India footprint
now covers 12 States served by 4 Integrated Cement plants, 4 Grinding Units and a Terminal,
having installed capacity of 12.6 Million Tonnes. Its manufacturing locations are at Damoh
(State of Madhya Pradesh), Yerraguntla (State of Andhra Pradesh), Sitapuram (State of
Telangana), Ammasandra (State of Karnataka), Jhansi (State of Uttar Pradesh), Sholapur (State
of Maharashtra), Chennai (State of Tamil Nadu), and Cochin (State of Kerala).
This has enabled the Group to improve its product offerings over a wider geographic area. The
products from its manufacturing units are sold under the brand names “Mycem” and “Zuari”
Sustainability
Sustainability implies incorporating financial, environmental and social objectives into our
business strategy for us. In this context, in October 2017, we released our Sustainability
Commitments 2030 where we established our sustainability strategy's basic values. Our
employees ' health and security is essential.
Their general objective is to avoid accidents and health harm entirely. They deliver performance-
related, competitive wages to our staff and are committed to fair circumstances of jobs and
compliance with relevant labor and employment legislation. This means, in particular, that they
do not tolerate any form of discrimination, harassment, or infringement of laws and regulations
They are committed to continually decreasing our ecological footprint with regard to
environmental protection. They accept our share of global responsibility to reduce temperature
rise worldwide to below 2 ° C. They comply with environmental standards and are bringing our
pollutant emissions to below the cement industry average. They also protect natural raw material
reserves by increasingly replacing them with alternative raw materials.
They promote their neighboring communities ' social and economic development and guarantee
transparent communication with all stakeholders. It is a matter of course for them to comply with
relevant legislation and regulations. Their overall objective is to generate sufficient added value
for all our stakeholders: for our clients, staff, shareholders, the communities to which their places
belong, and the general public.
Vision:
Our vision is to be the most admired cement company in India and to be an employer of choice.
Sharing the same passion, every employee works with entrepreneurial spirit to bring it to
fruition.
Mission:
HCIL believes strongly in all parameters of Corporate Governance. We have several
programmes that ensure compliances of country laws, rules and regulations. Ethical conduct is
an unwritten rule. Any deviation is dealt with severity through our whistle blower policy.
Their local operations are key for the success of our business. Local management bears full
responsibility for production, market, and management development, with the aim of market and
cost leadership. They are supported by nationwide shared service centers, which handle
administration for all business lines on the basis of a standardised IT infrastructure. In order to
ensure transparency, efficiency, and rapid implementation of measures throughout the Group,
Heidelberg Cement has standardised all important management processes. Group-wide, uniform
key performance indicators (KPIs) facilitate and provide a foundation for continuous
benchmarking.
Their goal is to create strong and defendable market positions in markets with long-term
potential. To achieve this,they avoid markets with unjustifiable high political, economic, or
compliance risks. We retain key market positions regardless of economic cycles. As a whole,
they are not subject to active portfolio management.
Financial Performance:
Their stated goal is to earn a premium on the cost of capital. To this end, they aim to achieve a
balance between short-term profitability and long-term value creation. This means using their
capital in a responsible and disciplined manner. Before investment decisions are taken, they are
carefully reviewed in terms of their market, strategic, financial, and technical attractiveness and
with regard to clearly defined investment criteria. In addition, they consider sustainability
aspects, such as the impact on human rights and nature. Last but not least, they ensure that their
geographically diversified portfolio gives us direct access to the cash flow from their ongoing
business activity.
Shareholders Unit:
In spring 2015, Heidelberg Cement defined value creation for shareholders and disciplined
growth as the strategic priorities for its capital allocation. To improve the results for
shareholders, Heidelberg Cement will pursue a progressive dividend policy. The payout ratio is
expected to amount to around 40% for the 2020 financial year. Moreover, the option was
introduced for any available cash to be returned to shareholders in the form of share buybacks.
At the same time, the company aims to achieve a stable investment grade rating and reduce its
dynamic gearing ratio to 2.0x by the end of 2020 (before application of IFRS 16).
Assets
Non-current assets
Intangible assets
11,471.2 11,820.5
12,813.8 12,961.6
Financial assets
2,181.1 2,106.8
Current assets
Inventories
1,880.7 2,034.8
2,583.7 2,764.3
Non-current liabilities
8,522.5 9,508.9
3,803.2 3,187.8
Current liabilities
2,528.1 1,471.8
Sustainability Report:
Climate protection: intensive research on CO2 reduction Climate protection is at the heart of
our efforts to support sustainability. They have made a commitment to accept their share of the
worldwide responsibility to limit the global rise in temperature to below 2°C and to promote the
transition to a low-carbon economy, while also supporting the social and economic development
of the countries in which they operate. They are the first company in the cement sector to have
the Science Based Targets initiative (SBTi) verify that their CO2 reduction targets for 2030
conform to the requirements of the Paris Agreement. Cutting their CO2 emissions and handling
natural resources considerately are priorities for all business lines. Their actions to achieve these
objectives include constantly increasing the proportion of alternative raw materials and fuels,
continuously optimizing our production processes, and investing in innovations at product and
technology level. They consider the entire value chain – from the quarry to the recycling of the
building materials. By 2030, they will invest 80% of our research and development budget in the
development of sustainable products. With their active involvement in various research projects
to investigate methods of capturing and recycling CO2, they are leaders in our industry. Their
vision is to offer a CO2-neutral concrete by 2050 at the latest.
By taking on a responsibility for the environment and society as well as reducing the negative
effects of our activities as much as possible, we are minimising the risks faced by our business.
This is achieved by following a holistic approach that is valid for all our business lines and
Group areas. Our sustainability strategy focuses on local responsibility – towards our employees
and our neighbours as well as the environment – at more than 3,000 locations in around 60
countries worldwide. Another of our central concerns lies in investigating and supporting
biodiversity in quarries and extraction sites – both during operation and in subsequent use. In
December 2018, the final round of our fourth international research and education competition,
the Quarry Life Award, took place. Teams from 26 countries participated and submitted over 300
project ideas. These extremely wide-ranging projects present Heidelberg Cement with new
insights into biodiversity in quarries and offer ways to support this even more effectively.
Occupational safety and human rights The issue of occupational health and safety is another top
priority at Heidelberg Cement and stems from our key corporate values. We work continuously
to minimize the risks for our employees, contractors, and third parties. In 2018, we decreased the
accident frequency rate across the Group by 12%. We will maintain our focus on prevention and
accident avoidance in order to achieve our goal of “zero harm”, which we also reiterated in our
Sustainability Commitments 2030. We are committed to respecting human rights. On this basis,
we commenced a Group wide human rights risk analysis at the end of 2017. In addition to the
working conditions of our employees, it also covers responsibility for the people living near our
sites and the selection of suppliers and customers.