Introduction:

Ambuja Cement Ltd. is one of the largest cement producers in India, founded in 1981 by
Narottam Sakhseria and Associates. It manufactures and markets cement both in domestic as
well as international markets.
Currently, founder Narottam Sakhseria is Chairman of the company and Eric Olsen, CEO of
LafargeHolcim is vice Chairman. Ajay Kapur who has been in the company since 1993 is the
Managing Director and CEO of the company.
The company headquartered in Mumbai is a part of Lafarge Holcim group which is one of the
largest global conglomerate and also, the largest cement producer in the world with a
presence in over 90 countries.
Ambuja Cement is 2nd largest producer of cement in the country. It has its manufacturing
units spread all over the country with a capacity of 29.65 million tonnes. It has five integrated
cement manufacturing plants and eight cement grinding units of its own. The revenue of the
company is estimated to be 1.1 billion$.
It is one of the first cement companies in the country to go for bulk cement movement via sea
route for which it built its own ports and have a fleet of ships to serve the purpose. Moreover,
the company also has overseas clinker grinding unit in Sri Lanka.
With its innovation in cement producing technology and use of innovative transportation
cement for exports, it is one of the low cost cement producers in the world with highest
quality.

Cement industry overview and major competitors:

India is the second largest producer as well as consumer of cement after China with an annual
production of around 600 million tonnes. The cement industry provides employment to
around 10 lakh people in the country and hence is a major contributor to GDP.
The major players in cement industry are UltraTech Cement, Ambuja Cement, Shree Cement,
ACC, India Cements, JK Lakshmi Cement and Birla Corp. The top 20 companies account for
70% cement production in the country.

The industry has attracted many investments in the sector due to its bright prospects with
housing and infrastructure boom which accounts for around 67% of the total cement
consumption. Ambuja Cements and ACC is a part of global conglomerate LafargeHolcim
which is worlds largest cement producer. Also, recently Nirma bought assets of Lafarge
assets worth Rs.9,400 crores which is expected to change the industry dynamics.
Due to several favourable initiatives by the incumbent Government of India, GST and
increase in infrastructure spending with the development of smart cities, the cement industry
is expected to grow tremendously in coming years.

Product & Services:

Ambuja Cement Ltd.s primary objective is to manufacture and market cement (domestic as
well as international). It has products with the brand names :

Ambuja Cement
Ambuja PPC Cement
Ambuja Plus

Ambuja Cement: This product is basically an Ordinary Portland Cement (OPC) having
Grade-33, Grade-43 and Grade-53. OPC is a mixture of Portland clinker and finely powdered
gypsum. It is mostly used for buildings, bridges, walls and similar kind of structures. Grade43 OPC is the most used general purpose cement.
Ambuja PPC Cement: PPC stands for Portland Pozzolana Cement which is a high strength
and high performance cement as claimed by the company. It is a mixture of portland cement
and pozzolana materials like fly ash. The fly ash generated as waste from thermal plants is
used to manufacture this cement thus reducing the dependence on limestone. It constitutes
93% of the companys portfolio and is generally used in hydraulic structures and mass
concreting works.
Ambuja Plus: Ambuja Plus is the latest launch in the product portfolio of Ambuja Cement
Ltd. It is a very high quality PPC with advanced technology. It extracts 100% silica gel from
the cement thus making it more concrete, stronger, dense and leak proof. It is primarily used
for strengthening the roof and is named as Roof Special.

Technologies used:
Ambuja Cement Ltd. is known for its low cost and high quality cement production. Over the
years, it has used many innovative means and technologies to ensure the same.
One of the most innovative things they have used in cement production is using fly ash to
produce PPC (Portland Pozzolona Cement) using fly ash. Fly ash is very cost effective since
a lot of fly ash is generated as a waste from thermal plants and hence, it reduces the
dependence on limestone. Also, its advanced technology extracts 100% silica gel from
cement, thereby making it very dense and strong.
Also, its latest breakthrough is Alccofine Micro Materials which has a wide range of
applications in high strength concrete structures such as dams and tunnels.
The company has also established a Concrete Future Laboratory for R&D purposes where the
following tests are conducted for cement testing and other materials:

Surface moisture
Specific gravity
Sieve Analysis
Elongation & flakiness index
Concrete cube testing services
Material passing through 75 micron sieve
Water absorption
U tube test
V funnel test

The construction activity requires a lot of sand by industries. Apart from the natural sands,
industries have found an alternative named M-sand. The company has its own trademarked
testing methodologies to test the performance of various types of sands:

HolcimCone : to assess the mechanical performance of concrete

HolcimBlu : to test contamination in sand
HolcimShape : to characterize the shape of sand

Points highlighted in recent news articles on Ambuja Cement

Ambuja Cements June Quarter Profit Beats Estimates; Shares Rise NDTV Profit Team
(July 27, 2016)
1. A rise in Shares of Ambuja Cements of as much as 3 per cent.
2. In an otherwise flat market, company reported more than expected june quarter earnings.
3. 77 per cent increase in standalone net profit to Rs. 399.51 Crore where as total standalone
income rose 2 per cent to Rs. 2,561 Crore.
4. Ambuja Cements gross profits were aided by lower fuel and freight costs per tonne.
5. Shares ended 0.67 per cent lower at Rs. 268.

Ambuja Cements Proposal To Acquire 24% In Holcim Cleared Press Trust of India (July
21, 2016)
1. Ambuja Cements proposal to acquire 24 per cent stake in the holding firm Holcim India was
cleared by the government on Wednesday.
2. The proposal is considered to be a move which will allow Holcim Indias parent Swiss giant
LafargeHolcim to strengthen Indian Footprint.
3. Official Statement "The Cabinet Committee on Economic Affairs (CCEA), chaired by

Prime Minister Narendra Modi, has approved the proposal for Ambuja Cements Ltd
for acquisition of 24 per cent shares in its holding company Holcim (India) Pvt Ltd
from Holderind Investment Ltd
4. These transactions will strengthen all India Footprints, debt free balance sheet and cash flow
generation. It will also bring in huge prospects for further expansion and creation of
employment opportunities.

Ambuja Cements Gain On Strong Earnings NDTV Profit Team (April 29, 2016)
1. Shares gained as much as 2 per cent after the company reported strong earnings for its
quarter ended March 31, 2016, on the back of 10 per cent increase in cement
volumes.
2. Ambuja Cements reported a net profit of Rs 304 crore on sales of 2418 crore.
3. Low Energy Costs Helped Ambuja Cements post strong earnings.
4. Company Said ina release to Bombay Stock Exchange "During the quarter, energy

cost was lower by 19 per cent due to fuel prices and increased usage of pet
coke and alternate fuel".