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 ANALYSIS
STRENGTH:-

 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