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BIRLA CEMENT
FLOW OF CONTENT Introduction Company Overview Manufacturing Process Finance Marketing HR Recession Company’s Current Status Future of the Company Conclusion
INTRODUCTION
By Saurav and Amneet
HISTORY OF CEMENT
• Used in ancient world by :i. Egyptians as calcined gypsum.
ii. Romans used crushed volcanic ash.
iii. Britain manipulated its properties for specific application and situation.
• The indigenous Indian cement industry traces its history back in 1914.
• Indian cement manufacture’s association was set up in 1925.
• Before partition India had 24 cement factories out of which it retained only 19th.
CEMENT INDUSTRY
• Decontrol- March 1989.
• Oligopolistic nature of cement industry.
• Main beneficiary of infrastructure boom.
• Indian cement is 2nd largest after china.
• Net profit growth rate - 85%
• Contribution to India’s economic development - 8%
• Presence of few foreign companies.
MAJOR PLAYERS
• ACC Limited
• Gujarat Ambuja
• UltraTech
• JK Group
• India Cements
• Birla Cement
PROSPECTS OF CEMENT INDUSTRY
Import from Pakistan affecting Indian market. Excess over capacity can hurt margins as well
as price. Cement production is cutting down because of
negative pressure on prices. Cheap labour and government subsidy proves
as a leverage for Indian Cement industry.
CURRENT STATISTICS
According to sales of may 2013 shows 14% growth over 2012.
India’s per capita consumption is 170kg. Indian to match its demand have to add another
150 million tones of capacity. Provide 6% of employment to unskilled labour
in southern region. Various subsidy is provided by government for
its growth. In 2013 it has attracted FDI of US$ 2000
million.
SECTORAL CONSUMPTION
COMPANY OVERVIEW
By Preety Jha
ABOUT US
• A metals powerhouse, among the world's most cost-efficient aluminium and copper producers.
• No.1 in viscose staple fibre• No.1 in carbon black• The fourth-largest producer of insulators• The fourth-largest producer of acrylic fibre• Among the top 10 cement producers• Among the best energy-efficient fertilizer plants• The largest Indian MNC with manufacturing
operations in the USA
THE INDIAN SCENARIO
The largest fashion (premium branded apparel) and lifestyle player
The second-largest manufacturer and largest exporter of viscose filament yarn
The largest producer in the chlor-alkali sector Among the top three mobile telephony companies A leading player in life insurance and asset
management Among the top two supermarket chains in the retail
business Among the top 6 BPO companies The largest manufacturer of linen fabric.
VISION AND VALUES
To be a premium global conglomerate, with a clear focus on each of the businesses.
OUR MISSION
To deliver superior value to customers, shareholders, employees and society at large.
OUR VALUES Integrity : Acting and taking decisions in a manner
that is fair and honest.
Commitment : On the foundation of Integrity, doing all that is needed to deliver value to all stakeholders.
CONTINUED…
Passion : An energetic, intuitive zeal that arises from emotional engagement with the organization.
Seamlessness: Thinking and working together across functional groups, hierarchies, businesses and geographies.
Speed : Responding to internal and external customers with a sense of urgency.
MANUFACTURING
By Gaurav Vyas
PORTLAND CEMENT
By definition — A hydraulic cement produced by pulverizing clinker consisting essentially of hydraulic calcium silicates, usually containing one or more of the forms of calcium sulfate as an interground addition
Source: PCA, 2003
Raw Materials Necessary for Portland Cement Manufacture Must Provide the Following
Calcium
Silica
Alumina
Iron
Calcium Iron Silica Alumina Sulfate
Alkali wasteAragoniteCalciteCement-kiln dust
Cement rockChalkClayFuller’s earthLimestoneMarbleMarlSeashellsShaleSlag
Blast-furnace flue dust
ClayIron oreMill scaleOre washingsPyrite cindersShale
Calcium silicateCement rockClayFly ashFuller’s earthLimestoneLoessMarlOre washingsQuartziteRice-hull ashSandSandstoneShaleSlagTraprock
Aluminum-ore refuse
BauxiteCement rockClayCopper slagFly ashFuller’s earthGranodioriteLimestoneLoessOre washingsShaleSlagStaurolite
AnhydriteCalcium sulfate
Gypsum
Source: PCA, 2003
TRADITIONAL MANUFACTURE OF PORTLAND CEMENT
1. Stone is first reduced to 125 mm (5 in.) size, then to 20 mm (3/4 in.), and stored.
2. Raw materials are ground to powder and blended.
or
2. Raw materials are ground, mixed with water to form slurry, and blended.
3. Burning changes raw mix chemically into cement clinker.
Source: PCA, 2003
3. Burning changes raw mix chemically into clinker. Note four stage preheater, flash furnaces, and shorter kiln.
PYRO- PROCESSING
4. Clinker is ground with gypsum into portland cement and shipped.
Clinker Gypsum
TYPES OF PORTLAND CEMENT
Normal
Moderate sulfate resistance
High early strength
Low heat of hydration
High sulfate resistance
FINANCE FINANCE
By Nirvick
IS CEMENT INDUSTRY A CYCLICAL STOCK OR A DEFENSIVE STOCK?
MERGER ‘N’ ACQUISITION
Grasim Industries and UltraTech Cement- merging.
UltraTech Cement was acquired from L&T.
In 2013, Aditya Birla Group acquired Jaypee’s Gujarat cement unit for an enterprise value of Rs 3,800 crore.
Birla said the acquisition will be funded through equity of Rs 150 crore, debt worth Rs 2,000 crore and the remainder of Rs 1,650 crore through internal accruals.
CURRENT FINANCIAL STATUS
UltraTech Cement Q3 net profit dips 38 pct to Rs 370 cr. Profit dip due to subdued selling price of building materials
amidst poor demands. It had clocked Rs 601 crore net profit in the corresponding
quarter of last fiscal. Ultratech Cement's net sales also marginally declined to Rs
4,786 crore during the quarter from Rs 4,857 crore a year earlier.
Total expenses increased to Rs 4,267 crore from Rs 4,072 crore a year ago.
Freight costs rose to Rs 1,119 crore against Rs 1,059 crore.
• In the next 10 years, India will become the main exporter of clinker and gray cement to the Middle East, Africa and other developing nations
• Many foreign players are also expected to enter the cement sector in the next years.
PROFIT AND LOSS REPORT
Mar '13 Mar '12 Mar '11 Mar '10 Mar '090.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
Total IncomeTotal ExpensesOperating ProfitReported Net ProfitShares in issue (lakhs)
FINANCIAL RATIOS
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Current Ratio 0.96 0.87 1 0.97 0.71
Quick Ratio 1.23 1.35 1.1 1.11 1.54
Debt Equity Ratio
0.53 0.72 0.61 0.8 1.2
Inventory Turnover Ratio
7.37 7.31 6.07 6.41 7.51
Debtors Turnover Ratio
4.34 5.92 6.96 6.1 5.81
Asset Turnover Ratio
0.97 0.91 0.76 0.57 0.62
STOCK MARKET
MARKETING
By Yukti Taneja
SOURCES OF COMPETITIVE ADVANTAGE
ABG acquired L&T cement in 2003 and named it as UltraTech Cement.
Also possessed Grasim Cement which was later merged into UltraTech Cement industry.
Sourcing of raw materials
STPS Segmentation:
i. Geographical segmentation.
Targeting:
i. Differentiated target marketing.
Positioning:
i. Product differentiation.
ii. Image differentiation.
BRANDING
Represents expertise, strength and modernity. In-film branding with “Chak de India”. IPL connect with Rajasthan Royals and
Deccan Chargers. Also associated with Business India exhibition-
“A celebration of Architecture”. Has also been honoured with the title,
“SUPERBRAND” by Superbrands Council for years 2011 and 2012.
MARKET LEADERSHIP
Largest domestic M&A deal of Rs. 3800 cr. which will increase the capacity of UltraTech cement to 59 mtpa.
Installed capacity is projected to go up to 70 mt by 2015.
HR POLICY
By Priyanka Chandgothia
HUMAN RESOURCE MANAGEMENT
Recruitment
STRATOS (On Campus)
i. Flagship competition for management students.
ii. Open only for reputed colleges.
Training / Leadership Program
The program is currently offered at the following levels:
GIP : Group Internship Program
LEAD : Leadership Program for the Experienced
LEAP : Leadership Associate Program
HRLP : Human Resources Leadership Program
FLP : Finance Leadership Program
HUMAN RESOURCES LEADERSHIP PROGRAM
Post-training period: Career path that an HRLP participant is
expected to take: The first role - HR/IR in a manufacturing
location. The second role - HR generalist in a
manufacturing or service business. The third role - HR specialist in Group HR
or corporate HR of a business.
HUMAN RESOURCE MANAGEMENT
Learning and Development GyanodayaContinuous EducationE-learningLeadership programs
Performance ManagementMeritocracy360 Degree Appraisal
HUMAN RESOURCE MANAGEMENT
Benefits Talent Management– Employee as well as
FamilyHappiness At Work
Recognition:i. ABG awards
a. Individual awards
b. Team awards
ii. Pride awards
IS CEMENT INDUSTRY RECESSION FREE?
By Pallavi
• Effect of global recession on real estate and infrastructure.
• Demand and supply gap, overcapacity.
• Increasing cost of production.
• High interest rates.
Recession In Cement Industry
Cement : Demand and Growth
COMPANY’S CURRENT STATUS
By Shreysee
Current Status Of Birla Cement
• Ultratech Cement is India’s largest white cement producer.
• Among the top 10 producer of Grey Cement in the world.
• Present in 5 Countries- India, UAE, Srilanka,
Bangladesh and Bahrain.
• 1 white Cement plant and 1 Clinkerisation in UAE.• 15 Grinding Units- 11 in India, 2 in Bahrain and 2
Bangladesh• 2 Rail Bulk Terminals in India. • 4Coastal Terminals- 3 in India and 1 in Srilanka • 101 Concrete Plants around the world.
• Market Cap over 500 billion and Annual Capacity of 53.9 million tonnes.
• India’s largest Cement Clinker Exporter.
• Given the title of “Superbrand” by the Super brands Council and Consumer Selected “Powerbrand” by Powerbrands India.
• Given the title of “Superbrand” by the Super brands Council and Consumer Selected “Powerbrand” by Powerbrands India.
• More than 200 sales office across the country.
• It provide a range of products:
i. UltraTech Cement engineer choiceii. UltraTech Concrete (RMC)iii. UltraTech Building Productsiv. UltraTech Building Solutionv. Birla Whitevi. Star Cement
News• Ultratech acquire Jaypee's cement unit in
Gujarat in nearly 3,800 crores.
• Ultratech Cement reported a 38.43% dip in net profit for the October-December quarter at Rs. 370 crore.
• Net sales declined 1.5% to Rs 4,786 crore in the quarter ended December 2013 from Rs 4,857.4 crore in a year ago period.
• EBIDT dropped 25.4% to Rs 764 crore.
• Finance cost of the company jumped 73.6% on yearly basis to Rs 90.45 crore while tax expenses dropped 45 percent to Rs 139 crore compared to a year ago period.
FUTURE OF THE COMPANY
By Atrayee
FUTURE ASPECT OF CEMENT INDUSTRY
•Production of cement is expected to cross 400 million tonnes in the next few years
•Demand for cement is increasing at 8-10 per cent
•Players can increase their capacities from 210 million tonnes to 500-600 million tonnes every year
•Greater thrust on agriculture and suggested “second green revolution” will increase the use of cement in this industry.
• In the next 10 years, India will become the main exporter of clinker and gray cement to the Middle East, Africa and other developing nations
• Many foreign players are also expected to enter the cement sector in the next years.
FUTURE ASPECT OF ULTRA-TECH CEMENT
Amidst near-term weakness, the UTCEM management is optimistic on the long term growth prospects of the Indian Cement industry.
Focus on market share and leadership. Aggressive capex to expand and improve
efficiencies. Ongoing expansion would increase capacity by
20% over FY14-16 to 64.45MT. Adopted multiple operating efficiency
enhancement measures to combat cost pressure.
CONCLUSION
By Aditya
SWOT ANALYSIS
STRENGTH OPPORTUNITY1. Technological excellence 1. Increasing
urbanization
2. Growing international presence 2. Industrial growth
3. Product innovation 3. Emerging e commerce
4. Strong brand recognition business
WEAKNESS THREAT
5. Long process chain 1. Loss of sale to substitute
6. Complexity of operation 2. Fluctuation in foreign
market
Aditya Birla ultra tech cement (UNIT OF RAJSHREE CEMENT) incepted in 1983 since then Birla cement has been doing business very well .
Birla cement has tolerated many market thrust but still the company is standing with its glory and a huge goodwill .
INDIA has 4th largest economy in the world in that Birla plays an important role to building the India
CONCLUSION
BIRLA always enjoy the loyalty of their customer this would be possible only Birla maintain their future scope
INTEGRITY Honesty in every stage
COMMITMENT Deliver on the promise
PASSION Energized action
EMPATHY Creating social belongingness
Basically company providing a strong base structure to the country and their people creating the hope which everyone wants
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