Dr.

Moonje Institute of Management and Computer

Studies, Nashik

Subject:-
ENTERPRISE ANALYSIS:-DESK REPORT
SUBJECT CODE - 115

Name of Organization:-
AMBUJA CEMENTS LIMITED

SUBMITTED BY- GAIDED BY –

KOMAL DHODARE MR. NITIN CHOUDARI SIR

SAGAR DOKHE
AMRUTA DIXIT
PRAJAKTA DHATRAK
AISHWARYA DHESHPANDE

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 INDEX

Sr. no. Particulars Page No.

1 History & background 4
1.1 year of establishment
1.2 type of company
1.3 organization & current promoters
1.4 vision & mission

2 Organization 7
2.1 structure
2.2 geographical spread out
2.3 current head quarter
3 Market 9
3.1 types of customer
3.2 customer segment
3.3 product line
3.4market share
3.5 market competitors
4 Financial review 12
5 Governance 16
5.1 awards
5.2 CSR activities
6 Executive summery
7 conclusion

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Desk report on – AMBUJA CEMENTS LTD

REGISTERED OFFICE

Kodinar
At. P.O. Ambujanagar, Taluka Kodinar,
Dist. GirSomnath,
Gujarat - 362715
02795 - 237000

Corporate Office:-
Mumbai
3
 Elegant Business Park, MIDC Cross Road 'B',
Off Andheri-Kurla Road.Andheri (E),
Mumbai 400059
022 – 40667000

Enterprise History & Background

 Year Of Establishment: Sets up its first cement manufacturing plant at Ambuja nagar,
Gujarat in 1983

 Type of Company: cement producing company

 Original & Current Promoters:-

1. Holderind Investments Ltd

2. Holcim India Pvt Ltd

 Business Group (Name) :- AMBUJA CEMENTS LTD.

 Vision:- To be the most sustainable and competitive company in our industry.

 Mission: Create Value for all

Delighted Customers
Inspired Employees
Enlightened Partners
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Energized Society
Loyal Shareholders
Healthy Environment

Philosophy:
The primary role of the Board is to protect the interest and enhance value for all the
stakeholders. They conducts overall strategic supervision and control by setting the goals
&targets, policies, reporting mechanisms, accountability and decision making process to
be followed.

Board of Directors & Profiles of key personnel

Name of Chairman:-

1. Suresh Kumar Neotia ,Founder, Chairman

2. Narotam Sekhsaria,Co-Founder, Chairman

Name of MD&CEO:-

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 NS Sekhsaria

Ajay Kapur

Name of The members of Profiles

Board of Directors of key
personnel
Mr. N. S. Sekhsaria Non-Executive Chairman, Non-Independent

Mr. Nasser Munjee

Mr. RajendraChitale

Mr. ShaileshHaribhakti Non-Executive, Independent Director

Dr. Omkar Goswami

Mr. HaigreveKhaitan

Mr. Ajay Kapur Executive, Non-Independent, Managing

Director & CEO

 Leader’s message :-

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 Policies & Procedures:-

 We act with integrity at all times; we are honest and trustworthy.

 We demonstrate respect for our fellow employees, customers and business partners; we
listen and seek solutions.

 We are open minded team players; we foster collaboration while maintaining

individual accountability.

 We value new ideas that serveour customers, the business and communities.

 We are dedicated, committed and deliver on our promises.

 We obey the law and comply with this Code

2. Organization:-
 Organization Structure :-

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 Geographical Spread out
1. Unit :Ambuja Nagar ( interegeted ) Gujarat
2.Unit :Bhatapara II ( I ) Chhatisgarh
3.Unit:Darlaghat ( I ) Himachal Pradesh
4.Unit: Chandrapur ( I ) Maharashtra
5.Unit: Rabriyawas( I ) Rajasthan
6.Unit: Rauri( I ) Himachal Pradesh
7.Unit: Farakka(Grinding) West Bengal
8.Unit: Magdalla(G) Gujarat
9. Unit: Nalagarh(G) Himachal Pradesh
10.Unit: Roorkee (G) Uttarakhand
11.Unit: Ropar(G) Punjab
12.Unit: Bhatinda (G) Punjab
13.Unit: Dadri (G) Uttar Pradesh

 Current Head Quarter: Mumbai

 Type of organization (Manufacturing/ Service) : Manufacturing

 Any other Collaboration: Technical collaboration with Krupp Polysius, Germany,

Bakau Wolf and Fuller KCP.

 Any Merger / Acquisition (history if any):It is a part of the global conglomerate

Holcim, one of the world’s leading suppliers of cement and aggregates.

 Successes and milestones:

 Conserving water more than 18 million liters water
 Replacing conventional clay bricks with more than 100 millioneco-friendly
bricks
 Setting up 27 Ambuja Knowledge centers throughout the country.

 Training & Development:

 Training & certification of more than 10000 masons
 Training & certification of more than 5000 contractors

.
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 Market

 Customer Type (B2B/B2C etc) : Business to Business

 Customer Segment: Technical Services function promotes Ambuja brand by creating

differentiated engagement with customers & influencers through expert advice and value
added services across the customer segments.

 Customer Product: Ambuja Cement is committed to make high strength cement that
would enable there customers to builds strong and durable structures. To achieve this, the
finest quality of limestone is used. But there people have also used one more ingredient –
Innovation.

 Product Line:

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 Major product brand : CEMENT

 Market Share – Nationally :

 The Indian cement industry is the 2nd largest market after China, accounting
for about 8% of the total global production.

 Cement is a cyclical commodity with a high correlation with GDP. The

housing sector is the biggest demand driver of cement, accounting for about
two-thirds of the total consumption. The other major consumers of cement
include infrastructure, commercial construction and industrial construction.

 Advertising Agency: “ Publicis ”

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 Advertising Punch line& Slogan: Giant compressive strength

 Advertising Logo:

Market competitors:-

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 Financial review
 Tabulation or graphical representation of data from last five years for –
Profitability:

YEAR Net Sales (in cr.) Net Profit (in cr.)

31-12-2012 8554.26 1228.86
31-12-2013 9730.30 1297.06
31-12-2014 9160.35 1294.57
31-12-2015 9978.12 1496.36
31-12-2016 9461.40 807.56
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 9730.3 9978.12
9160.35 9461.4
10000
8554.26
9000
8000
7000
6000
5000
4000
3000
1228.86 1297.06 1294.57 1496.36
2000 807.56
1000
0
31-12-2012 31-12-2013 31-12-2014 31-12-2015 31-12-2016

NET SALES (in cr.) NET PROFIT (in cr.)

 Revenues : 76,378.1 million (US$1.1 billion)2010

 Market Capitalization : 509.02B
 Listing Status : Listed
 Stock Exchange:
BSE :256.70^
NSE:-256.20^

 Share Price – Face Value :Rs.2.00

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 Current Market Value : Rs.256.20
 PE Ratio :Rs.27.76
 Shareholding Pattern:

Holder’s Name % Share Holding

Promoters 61.62%
Foreign Institutions 20.26%
Financial Institutions 8.65%
General Public 4.73%
Others 2.37%
Banks Mutual Funds 2.33%
Central Govt 0.04%

Governance

 Involvement in Scam :-The sale of Ambuja Cements was banned in Jammu and
Kashmir on the basis of complaints about variable rates and cement bags being less
in weight in the state. After the initial enquiry, the department found less quantity
of cement in bags and defunct weighing machines. Consequently all the operations
of the company were stopped in the state. While inspecting the company’s
authorized dealers it was, detected that mandatory declarations like MRP, packing
date, consumer helpline number, complete address of manufacturer with PIN etc
were not prominent and legible on 50 kg cement bags as required under packaged
commodity rules.

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 CRISIL Rating :
Rating Outstanding as on 03-Oct-2016
Industry : Construction Material

Instrument Category Rating Rating Outlook

Long Term CRISIL AAA Stable
Short Term CRISIL A1+

 Award Won :
 Ambuja Cement Foundation - Received National Award For " Excellent
Water Management Initiatives" and Excellence In Water Management

 Ambuja Cements Ltd - The Best Among Equals Awarded "Best Brand" By
Zee Business Good Home Awards.

 Ambuja Received CII Sustainability Award 2012 (Commendation

Certificate for Significant Achievement on Journey towards Sustainable
Development) Presented By Hon'ble President Pranav mukharjee

 CSR Activity Performed:

 The areas of focus cover issues that affect locations and are often common to
other rural areas too. Prior to the identification of these areas, they undertake
Participatory Rural Appraisals and close interaction with the people.
 Water Resource Management
 Agro Based Livelihood
 Skill & Entrepreneurship Development Institute
 Healthcare
 Education

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  Women's Empowerment
 Infrastructure
 Disaster Relief
 Other Projects

The Ambuja Cement Foundation is active in 12 of India’s major states

where there plants are present.

The oldest location where the first activity was started is Kodinar in Gujarat.

Executive Summary

The Indian cement industry is the 2nd largest market after China, accounting for about
8% of the total global production. It had a total cement manufacturing capacity of 375-390
million tonnes (MT) as of financial year ended 2014-15. Cement is a cyclical commodity with a
high correlation with GDP. The housing sector is the biggest demand driver of cement,
accounting for about two-thirds of the total consumption. The other major consumers of cement
include infrastructure, commercial construction and industrial construction.
The cement industry capacity doubled in the last decade, with about 70 million tonnes
added in the last three years alone. Though India has witnessed sustained growth in cement
consumption since 2001, the growth has slowed down in the last 3-4 years. This has been on
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account of a slump in housing, infrastructure and commercial sector. The gap in the pace
between capacity additions and actual demand has led to a excess capacity situation in the
industry, resulting in sub-optimal utilisation rates. Moreover, the per capita consumption of
cement in India still remains substantially low at about 195 kg when compared with the world
average which stands at about 520 kg. This underlines the tremendous scope for growth in the
Indian cement industry in the long term.
Cement, being a bulk commodity, is a freight intensive industry and transporting it over
long distances can prove to be uneconomical. This has resulted in cement being largely a
regional play with the industry divided into five main regions viz. north, south, west, east and
the central region. The Southern region of India has the highest installed capacity, accounting
for about one-third of the country's total installed cement capacity.Cement demand is closely
linked to the overall economic growth, particularly the housing and infrastructure sector. The
Modi government's thrust on housing and infrastructure development should augur well for
cement demand. The crash in the global crude oil prices and other commodities should help
cement companies to reign over cost pressures and improve profitability of the sector.

Conclusion

From the project we practically understood the working of company.

We could practically able to study company’s background, finance its competitors
awards. By analyzing this things we could practically understood that it’s not that easy
for a company to survive in this competitive business word & in this market.
We are thankful to Prof. Mr. chudhari sir. He guided us for this entire project work &
mentor us time to time.

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