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Session: 2010 – 2011

Guided by:
Submitted by:

Mr. Abhishek Agnihotri Awanish Kumar Singh

Territory Sales Officer MBA 2nd Sem
Ambuja Cement Reg. No.:- P09BA015
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I am really thankful to Mr. Abhishek Agnihotri (Territory Sales Officer)

who has helped me in my project. The project could never have seen
the light of the day if it was not for these people.
I finally thank to one and all, who directly and indirectly have been
supporting me during my summer training.

Awanish Kumar Singh

I Awanish Kumar Singh , a student of MBA 3rd Sem in the year 2010-11, hereby declare
that , I have undergone training at Ambuja Cement Ltd. This report is an original work
carried out by me and the report has not been submitted to any other university for the
award of any degree or diploma.

Date :

Place : Awanish Kumar


MBA 3rd Semester

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Table of Contents
Page No.
1. Introduction …………………………………………06-07

2. About the Market

a. Global Scenario
b. Market in India ……………………….... …….07-08
3. An Overview of
a. Ambuja Cement Ltd. …………………………08-25
4. Methodology & research…………………………...25-26
5. Analysis & Interpretation…………………………...26-37
6. Finding & observation ……………………………… 37-38
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7. Suggestion……………………………………………38
8. Conclusion…………………………………………….39
9. Executive Summary………………………………….39
10. Annexure ………………………………………………40-42
11. Bibliography…………………………………………....42


Cement Industry
Cement Industry originated in India when the first plant commenced production in 1914
at Porbandar, Gujarat. The industry has since been growing at a steady pace, but in the
initial stage, particularly during the period before Independence, the growth had been
very slow. Since indigenous production was not sufficient to meet the entire domestic
demand, the Government had to control its price and distribution statutorily. Large
quantities of cement had to be imported for meeting the deficit. The industry was
partially decontrolled in 1982 and this gave impetus to its pace of growth. Installed
capacity increased to more than double from 27 million tons in 1980-81 to 62 million
tons in 1989-90.

The cement industry responded positively to liberalization policy and the

Government decontrolled the industry fully on 1st March 1989. From 1991 onwards
cement industry got the status of a priority industry in schedule III of the industry policy
statement, which made it eligible for automatic approval for foreign investment up to
51% and also for technical collaboration on normal terms of payment of royalty.
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After the globalization and liberalization of Indian economy, the cement industry
has been growing rapidly at an average rate of 9 percent. The country is now the
second largest producer of cement in the world next only to China with a total capacity
of 217.80 million tones. Additionally, in the last two decades, the industry has
undergone rapid technological up gradation and growth, and now, some of the cement
plants in India are comparable to the worlds best operating plants in all respects.

Till a few years ago India was importing cement from other countries, as the
production could not meet the demand for the whole country. Now the tables have
turned as India has started exporting large quantities of cement and clinker to
Bangladesh, Nepal, Sri Lanka, Maldives, Mauritius, Africa, Seychelles, Burma, UAE,
and Singapore etc

India is today the second largest producer of cement in world with an installed
capacity of close to 217.80 million tons per year. 95 % is consumed domestically and
only 5% is exported. Demand is growing at more than 10 % per annum. More than 90 %
of production comes from large cement plants. There are a total of 146 large and more
than 350 small cement manufacturing units in the country. More than 80% of the
cement- manufacturing units use modern environment friendly “dry” process.

In the cement industry there are two sectors – one consisting of large plants and
the other consisting of mini cement plants. A factory with an installed capacity
exceeding 2,97,000 tones per annum (900 tons per day) is a large plant and with
capacity up to and including 2,97,000 tons is a mini cement plant. At present, there are
146 large plants and about 365 mini cement plants. Since mini cement plants are
scattered all over the country with a number of associations representing different types
of processes, sizes etc. and some of them are even tiny units, it has not been possible
to obtain correct data of this sector. The present installed capacity of large plants is
217.80 million tons and the estimated capacity of mini cement plants is 11.8 million

The Indian cement Industry not only ranks second in the production of cement in
the world but also produces quality cement, which meets global standards. However,
the industry faces a number of constraints in terms of high cost of power, high railway
tariff; high incidence of state and central levies and duties; lack of private and public
investment in infrastructure projects; poor quality coal and inadequate growth of related
infrastructure like sea and rail transport, ports and bulk terminals. In order to utilize
excess capacity available with the cement industry, the government has identified the
following thrust areas for increasing demand for cement:
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• Housing development programmers & Promotion of concrete highways and roads;

• Use of ready-mix concrete in large infrastructure projects;

• Construction of concrete roads in rural areas under Prime Ministers Gram Sadak

In India, the different types of cement are manufactured using dry, semi-dry, and wet
processes. In the production of Clinker Cement, a lot of energy is required. It is
produced by using materials such as limestone, iron oxides, aluminum, and silicon
oxides. Among the different kinds of cement produced in India, Portland Pozzolana
Cement, Ordinary Portland Cement, and Portland Blast Furnace Slag Cement are the
most important because they account for around 99% of the total cement production in

The types of cement in India have increased over the years with the advancement in
research, development, and technology. The Indian cement industry is witnessing a
boom as a result of which the production of different kinds of cement in India has also

By a fair estimate, there are around 11 different types of cement that are being
produced in India. The production of all these cement varieties is according to the
specifications of the cement.

The Indian cement industry is the second largest producer of quality cement, which
meets global standards. The cement industry comprises 130 large cement plants and
more than 300 mini cement plants. The industry's capacity at the end of the year
reached 188.97 million tons which was 166.73 million tons at the end of the year 2006-
07. Cement production during April to March 2007-08 was 168.31 million tons as
compared to 155.66 million tons during the same period for the year 2006-
07.Despatches were 167.67 million tons during April to March 2007- 08 whereas 155.26
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during the same period. During April-March 2007-08, cement export was 3.65 million
tons as compared to 5.89 during the same period.

Cement industry in India is currently going through a consolidation phase. Some

examples of consolidation in the Indian cement industry are: Gujarat Ambuja taking a
stake of 14 per cent in ACC, and taking over DLF Cements and Modi Cement; ACC
taking over IDCOL; India Cement taking over Raasi Cement and Sri Vishnu Cement;
and Grasim's acquisition of the cement business of L&T, Indian Rayon's cement
division, and Sri Digvijay Cements. Foreign cement companies are also picking up
stakes in large Indian cement companies. Swiss cement major Holcim has picked up
14.8 per cent of the promoters' stake in Gujarat Ambuja Cements (GACL). Holcim's
acquisition has led to the emergence of two major groups in the Indian cement industry,
the Holcim-ACC-Gujarat Ambuja Cements combine and the Aditya Birla group through
Grasim Industries and Ultratech Cement. Lafarge, the French cement major has
acquired the cement plants of Raymond and Tisco. Italy based cement has acquired a
stake in the K.K. Birla promoted Zuari Industries' cement plant in Andhra Pradesh, and
German cement company
Heidelberg Cement has entered into an equal joint-venture agreement with S P Lohia

Group controlled Indo-Rama Cement.

Ambuja Cements
Ambuja Cements Limited was earlier known
as Gujarat Ambuja Cements Limited (GACL). The company was set up in 1986. In this
short span Ambuja Cements has achieved massive growth and presently, the total
cement capacity of the company is 16 million tonnes. The company has three
subsidiaries, viz, Ambuja Cement Rajasthan Limited (ACRL), Ambuja Cement Eastern
Limited (ACEL) and Ambuja Cement India Limited (ACIL). Ambuja also has a strategic
investment in ACC through its subsidiary (ACIL).

Ambuja Cements is the most profitable cement company in India, and the lowest cost
producer of cement in the world. One of the major reasons that Ambuja Cements is the
lowest cost producer of cement in the world is its emphasis on efficiency. Power
consists over 40% of the production cost of cement. The company improved efficiency
of its kilns to get more output for less power. Thereafter Ambuja Cements set up a
captive power plant at a substantially lower cost than the national grid. The company
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sourced a cheaper and higher quality coal from South Africa, and a better furnace oil
from the Middle East. As a result, today, the company is in a position to sell its excess
power to the local state government.

Ambuja cement is the first company to introduce the concept of bulk cement movement
by sea in India. This resulted in speedier transportation and brought many coastal
markets within easy reach. Ambuja Cements has a port terminal at Muldwarka, Gujarat.
It is an all weather port that handles ships with 40,000 DWT. The port has a fleet of
seven ships with a capacity of 20500 DWT to ferry bulk cement to the packaging units.
The company has bulk cement terminals at Surat, Panvel, and Galle. The Surat terminal
has a storage capacity of 15,000 tonnes and Panvel terminal has a storage capacity of
17,500 tonnes. Both the terminals have bulk cement unloading facility. The port at
Galle, 120 km from Colombo, Sri Lanka, handles million tonnes of cement annually.


Mr SURESH NEOTIA, co-promoter and Chairman of Ambuja Cements Limited, is a businessman
and industrialist of repute. He is currently a member of the Central Board of the Reserve Bank of
India. He is also known for his association with numerous cultural institutions as well as charitable
organisations The President of India conferred upon him the Padma Bhushan in the year 2008.

Mr NAROTAM SEKHSARIA, an industrialist reputed for his business acumen, is the main Promoter
of Ambuja Cements Ltd. He is known to have created new benchmarks in the cement industry with
his path breaking innovative thinking. He is presently the Chairman of ACC Ltd. and the Vice
Chairman of Ambuja Cements Ltd.

Mr VINOD NEOTIA, a Co-Promoter of Ambuja Cements Ltd. played a critical role in the
development of the company since its inception. He is associated with several business and
charitable organisations. He is the Chairman of Bhagirathi Neotia Woman and Child Care Centre,
Kolkata, and is also the Chairman of Macmet India Ltd.

Mr A L KAPUR, closely associated with the Cement industry for more than three decades, is
presently the Managing Director of Ambuja Cements Ltd. He has previously held positions on
Boards of several large Corporates. He was also the President of Cement Manufacturers
Association (CMA), Chairman of the Board of Governors of the National Council for Cement and
Building Materials (NCBM) and Chairman of the Development Council for the Cement Industry.
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Mr B B TANDON, IAS (RETD.), a retired IAS Officer, (1965) of Himachal Pradesh Cadre. He retired
as the Secretary-Personnel, Government of India. He also served as Secretary-Mines during his
career. He has been the Chief Election Commissioner of India. Presently, he is on the Board of
various prominent organisations.

Mr P K LAHERI, IAS (RETD.), a retired IAS officer (1969) of Gujarat Cadre, retired as Chief
Secretary in March 2005. Mr. Laheri served as CMD of Sardar Sarovar Narmada Nigam Ltd.,
Gandhi Nagar. He worked on many portfolios such as Industry, Education, Information, Water
Supply, Fashion, Tourism, and Rural Development during his career.

Mr R S MANN, IAS (RETD.), a retired IAS Officer (1965) of Punjab Cadre, retired as the Chief
Secretary of Punjab in 2000. During his career he held prominent posts viz. Secretary-Personnel,
Secretary-Housing of Punjab. He is currently associated with various social institutions and

Mr SHARADCHANDRA KALE, IAS (RETD.), a retired IAS officer (1963) of Maharashtra Cadre, has
held high offices in his career including the position of the Secretary of important departments in the
State of Maharashtra. He has also served as the Additional Chief Secretary (Planning Dept.), the
Chairman of Mumbai Port Trust and Chairman of the Reserve Bank of India (Services Board).

Ms PADMINI SOMANI, Founder Director of Salaam Bombay Foundation, has represented India at
various international forums on tobacco control. A patron of art, she also takes keen interest in
organising dance and cultural programmes. She is a graduate from the London School of Economics
and has an M.Sc. in Financial Economics from University of London, U.K.

Mr V K JAIN, IPS (RETD.), a retired IPS Officer (1958) of U.P. Cadre, was the Director General of
Police in U.P. Thereafter he held various important portfolios including the offices of the Special
Secretary (ISP), the Home Ministry, Special Secretary, the Department of J&K Affair, Government of
India and a Member National Security Advisory Board. He is currently also a Member of National
Disaster Management Authority.

Ms PEARL TIWARI, graduated from the prestigious Tata Institute of Social Sciences, Mumbai,
where she also served as a faculty for 2 years. Currently a Vice President (CSR) in
AmbujavCements Limited, she has been associated with the developmental sector in India for over
25 years. She is particularly sensitive to issues of social responsibility.

About the company

With a total production capacity of 15.5 million tones of cement, the Ambuja Cement
Group has eight plants across seven States of India. The total workforce employed by
the Group is around 4,500 people. Taking into consideration the number of secondary
stakeholders (family members, truckers and the migrant labor community in the vicinity
of the operations), the reach of Ambuja Cement is significantly larger than its workforce.
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Ambuja Cement’s workforce has regular interface with the thousands of truckers
operating at Ambuja’s plant locations. Another high risk group is a sizable number of
migrant workers living in the same environment.

Project progress as of January 2006 (six month progress report)

The program was launched in Ambuja Cement in July 2005. The program was started
simultaneously at 8 factory locations of Ambuja Cements:

• Ambuja Nagar (Gujarat)

• Darlaghat (Himachal Pradesh)
• Chandrapur (Maharashtra)
• Rabriyavas (Rajasthan)
• Sankrail (West Bengal)
• Bhatapar (Chattisgarh)
• Ropar & Bathinda (Punjab)

Approximately Rs. 450,000 have been received from IFC as the first installment of the
grant. The Ambuja Cement Foundation is supporting Ambuja Cement to implement the

The following detailed progress report on the project comes in part from a
supervision visit at the Ambuja Cement plant at Darlaghat (Himachal Pradesh) on
January 30, 2006.

Darlaghat in Himachal Pradesh is the single largest production site for Ambuja Cement;
the factory is isolated, settled in a small village of approximately 2,000 inhabitants. The
factory employs about 1,000 employees, virtually all men, and attracts daily about 900
trucks, i.e. close to 2,000 truckers and cleaners/helpers (all males also) transit in the
area daily. A small vibrant community of mechanics, dhabas (i.e. small restaurants and
convenience shops), and tyre distributors resides literally at the doors of the plant.
Employees are housed in the factory compounds, in single family apartments or group
hostels spread over several hectares.

Project management and infrastructure

• A Core Committee of 3 members was constituted to oversee the implementation

of the program. The committee is headed by Mr. V. K. Jain (Director, Ambuja
Cement Foundation), and also includes Ms. Pearl Tiwari (General Manager,
Community Development for Ambuja Cement) and Mr. Vishal Bhardwaj
(Regional Program Coordinator, Ambuja Cement Foundation). Mr. Bhardwaj has
also been designated nodal officer (Program Coordinator) for the program.
• A Project Monitoring and Implementation Committee (PMIC) is in place at each
project site, and is championed by the General Manager. Other members from
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the PMIC include Heads of Departments, one of the Master Trainers, and the
local Ambuja Cement coordinator (Sameer Sharma at Darlaghat). The PMIC
meets monthly.


• A knowledge, attitude, behavior and practice (KABP) survey was undertaken at

all of the 8 program locations at the beginning of the program. The study would
not only assist the program planning, it would also be a tool to evaluate the
program after it is completed.
• A sample size of 510 people was drawn from all locations (employees); about
400 truckers and migrant workers were also surveyed. The enumerators (i.e.
employees in charge of administering the KAPB survey questionnaires in the
workforce) were trained centrally with ILO’s assistance to maintain uniformity of
• The data collected from all locations was then collated. Although the findings of
the survey are available now, a detailed report is being prepared by ILO and will
be available in February 2006. The KAPB survey was undertaken in cooperation
between the Ambuja Foundation and ILO, hence a significant saving on the cost
of the baseline study previously budgeted in the project proposal.

Internal advocacy towards senior management

• The program began with advocacy workshops conducted at all locations by the
Core Committee. The objective was to sensitize the top management at each
production site about the program launch and to advocate in favor of the need to
implement such a program.
• Eight workshops were organized, which were attended by all General Managers
and the Heads of Departments.
• Prior to these, a letter was also sent by the Managing Director of Ambuja Cement
to all General Managers advising them to put their best foot forward while
implementing the program.
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Gujarat Ambuja Cement Plants

Name of the Company Location State Process Used

Gujarat Ambuja Darlaghat Himachal Pradesh

Gujarat Ambuja (G) Ropar Punjab Grinding Unit

Gujarat Ambuja (G) Bhatinda Punjab Grinding Unit

Ambuja Cement Raj. Ltd. Pali Rajasthan Dry

Ambuja Cement Kodinar Gujarat Dry

Ambuja Eastern Sankrail West Bengal Grinding Unit

Ambuja Eastern- CTG Bhatapara Chhattisgarh Dry

Ambuja Cements Limited was set up in the late 80s. The cement industry presented
an opportunity of steady growth and ethical competition to the promoters.

However, a decade later, it became one of world’s most efficient cement companies
producing the finest cement in the world at the lowest cost. While adhering to the most
stringent international pollution-control norms.
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Today, Ambuja is the 3 rd largest cement company in India, with an annual plant
capacity of 16 million tonnes including Ambuja Cement Eastern Ltd. and revenue in
excess of Rs.3298 crores.

More importantly, its plants are some of the most efficient in the world. With
environment protection measures that are on par with the finest in the developed world.

But the company’s most distinctive attribute is its approach to the business.

Ambuja believes its most valuable assets aren’t cement plants.

They are the people who run the plants.

This unique vision is encapsulated in the company’s homegrown philosophy of giving

people the authority to set their own targets, and the freedom to achieve their goals.

It’s called ‘I can’’

This simple vision has created an environment where there are no limits to excellence,
no limits to efficiency. And has proved to be a powerful engine of growth for the

As a result, Ambuja has consistently raised the bar in all aspects of the cement industry.

Be it transportation, plant efficiency, brand building or human resource development.

Take a look:

First plant set up in record time

When Ambuja set up its first plant in 1986, the accepted time period for installing a plant
was 3 years.

Ambuja, did it in less than 2 years. And with a significantly lower capital expenditure.

In 1993 the company went a step further and bettered its own record. Ambuja's second
plant was installed in a mere 13 months - the quickest time for setting up a one million
tonne cement plant.

A whole new way of transporting cement

In the early 90s, almost all cement in India travelled by rail or road. And in bags. A mode
that involves deterioration of both, the quality and volume of cement.
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In 1993, Ambuja Cement set up a complete system of transporting bulk cement via the
sea route.
Making it the first company in India to introduce bulk cement movement by sea. Others
followed and today, about 10% cement travels by this new route.

The facility comprises: A dedicated port at the Gujarat plants, capable of berthing
40,000 DWT vessels, three bagging terminals at Mumbai, Surat and Sri Lanka, and
seven special bulk cement vessels.

This capability has enabled us to supply fresh cement to many coastal markets –
domestic and international.

Branding a commodity

Cement is a commodity, sold largely on price. Ambuja Cement was the first company to
create a brand out of cement and command a premium.

It was also the first to introduce a special cell, providing technical services to consumers
and masons. Today, this has become the norm in cement marketing.

The trick of course was to provide a consistently high quality of cement, backed by
excellent service. This was reinforced by a strong dealer network.

The result is that customers are ready to pay 2-3% premium for Ambuja Cement for the
value they receive. Ambuja Cement is the top brand in Western, Northern, Central and
Eastern India.


Ambuja Cement exports almost 17% of its production in a very competitive international
environment. For the last ten years, Ambuja Cement remains India’s highest exporter
of cement.

This has been possible for two reasons –

One, the quality of cement matches the best in the world.

Two, the dedicated bulk cement transportation capability at our Gujarat plant.

The Environment
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From the outset, Ambuja has believed that a cement plant cannot flourish at the cost of
the environment. That’s why it adheres to the most rigorous international environmental

The pollution levels at all its cement plants are even lower than the rigorous Swiss
standards of 100 mg/NM 3.

At the Gujarat plants, surface miners have been employed to scrape the surface of the
mines. Thus ensuring that all the mining is totally blast free. There is no noise or air

Similarly at the Himachal Pradesh plant, Ambuja has employed techniques that have
made mining absolutely safe and pollution free.

Not surprisingly then, the company has consistently won awards for its pollution free
plants. Awards as prestigious as the National Award for Outstanding Pollution Control
and The Eco-Gold Star of Tata Energy Research Institute (TERI).

Corporate Social Responsibility

In 1991, the company set up Ambuja Cement Foundation to trigger all-round

development of the people around its cement plants. The Foundation decided to
traverse the difficult but more productive path of helping the people to help themselves.
With great dedication and commitment, the foundation energized the local people to
participate and own their development process. It became a facilitator and catalyst,
rather than a one-time fund provider. It developed easily replicable and sustainable
modules for water management, sustainable agriculture and healthcare.

All this effort in discharging its social responsibility has earned the company recognition
across Asia.


Building of a cement plant in record 13 months.

2.8 kilometer conveyor belt running through three hills was constructed in just 9 months.

Introduced a completely new system of transporting cement in India – the bulk cement
transportation by sea.

Introduced complete blast free limestone mining by using the surface miner in limestone
mining for the first time in India.

Created water reservoirs in used up mines and raised the water table in arid areas.
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Our plants have achieved the lowest pollution levels – comparable with the most
strongest Swiss standards.


• National Award for commitment to quality by the Prime Minister of India.

• National Award for outstanding pollution control by the Prime Minister of India.
• Eco-Gold Star by TERI
• Best Export Award by CAPEXIL.
• Award for Corporate Social Responsibility by Business World – FICCI
• International AwardFor Rural Development by Asian Management Institute
• ISO 9002 Quality Certification.
• ISO 14000 Certification for environmental systems.

Technical Details

Established – 1986.

Total Capacity – 15 million tonnes.

Infrastructure – Dedicated port at Gujarat. Capable of berthing 40,000 DWT

vessels with carrying capacity of 20,000 tonnes.

Packing terminals at Mumbai, Surat and Sri Lanka. Seven dedicated bulk cement

Ambuja Cements
Ambuja Cements Limited was earlier known as Gujarat Ambuja Cements Limited (GACL). The
company was set up in 1986. In this short span Ambuja Cements has achieved massive growth
and presently, the total cement capacity of the company is 16 million tonnes. The company has
three subsidiaries, viz, Ambuja Cement Rajasthan Limited (ACRL), Ambuja Cement Eastern
Limited (ACEL) and Ambuja Cement India Limited (ACIL). Ambuja also has a strategic
investment in ACC through its subsidiary (ACIL).

Ambuja Cements is the most profitable cement

company in India, and the lowest cost producer
of cement in the world. One of the major reasons that Ambuja Cements is the lowest cost
producer of cement in the world is its emphasis on efficiency. Power consists over 40% of the
production cost of cement. The company improved efficiency of its kilns to get more output for
less power. Thereafter Ambuja Cements set up a captive power plant at a substantially lower
cost than the national grid. The company sourced a cheaper and higher quality coal from South
Africa, and a better furnace oil from the Middle East. As a result, today, the company is in a
P a g e | 17

position to sell its excess power to the local state government.

Ambuja cement is the first company to introduce the concept of bulk cement movement by sea
in India. This resulted in speedier transportation and brought many coastal markets within easy
reach. Ambuja Cements has a port terminal at Muldwarka, Gujarat. It is an all weather port that
handles ships with 40,000 DWT. The port has a fleet of seven ships with a capacity of 20500
DWT to ferry bulk cement to the packaging units. The company has bulk cement terminals at
Surat, Panvel, and Galle. The Surat terminal has a storage capacity of 15,000 tonnes and
Panvel terminal has a storage capacity of 17,500 tonnes. Both the terminals have bulk cement
unloading facility. The port at Galle, 120 km from Colombo, Sri Lanka, handles million tonnes of
cement annually.

Major Achievements of Ambuja Cement

• Most profitable cement company in India.

• Lowest cost producer of cement in the world.
• Its environment protection measures are at par with the best in the world. The pollution
levels at all its cement plants are lower than the rigorous Swiss standards of 100
• The only cement company to be awarded with the National Quality Award.
• First cement company to first to receive the ISO 9002 quality certification.
• Received ISO 14000 Certification for environmental systems.
• India's largest exporter of cement.
• Received Best Award for highest exports by CAPEXIL.
• First company to introduce the concept of bulk cement movement by sea in India.

Ambuja Cement net profits rise on lower input cost

• Holcim Group companies, ACC and Ambuja Cement, have posted a strong
performance for the quarter ended September 30. While ACC showed a 60 per
cent growth in net profit, Ambuja Cement’s rose 27 per cent.
• ACC’s turnover rose nine per cent to Rs 2,077 crore (Rs 1,900 crore) in the
quarter under review. Cement production was up three per cent to 5.01 million
tonnes (mt).
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• Total expenditure fell three per cent to Rs 1,511 crore (Rs 1,551 crore) on the
back of a 17 per cent drop in power and fuel cost at Rs 362 crore (Rs 441 crore)
and 13 per cent in other expenditure to Rs 412 crore (Rs 475 crore).
• The substantial dip in coal prices helped reduce production cost and make up for
the fall in cement prices in various regions, said an analyst.
• “The benefit of lower coal prices in reducing our manufacturing cost was partially
offset by an increase in the cost of raw materials such as gypsum, slag and fly
ash coupled with higher diesel prices and royalty on limestone,” said Mr Sumit
Banerjee, Managing Director, ACC. Revenue from ready mix concrete business
fell 13 per cent to Rs 118 crore (Rs 135 crore) which recorded a net loss of Rs 17
crore (Rs 21 crore). Profit from the cement business was up 50 per cent to Rs
625 crore (Rs 418 crore) and revenue rose 10 per cent to Rs 1,969 crore (Rs
1,791 crore).
• Ambuja Cement reported a 16 per cent rise in sales at Rs 1,611 crore (Rs 1,387
crore). The company produced 4.1 million tonnes (3.9 mt) of cement in the
quarter. Sales in the domestic market were up nine per cent to 3.6 mt (3.9 mt),
while exports halved to 1.50 lakh tonnes (3 lakh tonnes). The company earned
Rs 17 crore by way of selling surplus captive power.
• “Cement demand in the central and eastern regions was particularly strong, while
the South saw a sharp slowdown, mainly in Andhra Pradesh,” said Mr A.L.
Kapur, Managing Director. Export markets have turned weak with orders hard to
come by and prices still unattractive, resulting in diversion of material to the
domestic market, he added. Ambuja Cement has commissioned a 15 MW power
plant at Maratha in Maharashtra while the second phase of captive power
expansion at the Ambujanagar plant is almost complete.
• “Pricing pressure has begun to appear in certain markets, particularly in the
southern and central regions, and may persist into 2010. The recent hike in
domestic coal prices will also put additional pressure on operating margins,” said
Mr Kapur.
• Shares of ACC and Ambuja Cement on BSE were down two per cent each at Rs
745 and Rs 88 .
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Ambuja Cements was set up in 1986. In the last decade the company has grown
tenfold. The total cement capacity of the company is 18.5 million tonnes.

Its plants are some of the most efficient in the world. With environment protection
measures that are on par with the finest in the developed world.

The company's most distinctive attribute, however, is its approach to the business.
Ambuja follows a unique homegrown philosophy of giving people the authority to set
their own targets, and the freedom to achieve their goals. This simple vision has created
an environment where there are no limits to excellence, no limits to efficiency. And has
proved to be a powerful engine of growth for the company.

As a result, Ambuja is the most profitable cement company in India, and one of the
lowest cost producer of cement in the world.

Brand Positioning - Definition and Concept

Brand positioning refers to “target consumer’s” reason to buy your brand in

preference to others. It is ensures that all brand activity has a common aim; is guided,

directed and delivered by the brand’s benefits/reasons to buy; and it focuses at all

of contact with the consumer.

Brand positioning must make sure that:

Is it unique/distinctive vs. competitors ?

Is it significant and encouraging to the niche market ?
Is it appropriate to all major geographic markets and businesses ?
Is the proposition validated with unique, appropriate and original products ?
Is it sustainable - can it be delivered constantly across all points of contact
with the consumer ?
P a g e | 20

Is it helpful for organization to achieve its financial goals ?

Is it able to support and boost up the organization ?

In order to create a distinctive place in the market, a niche market has to be carefully
chosen and a differential advantage must be created in their mind. Brand positioning is
a medium through which an organization can portray its customers what it wants to
achieve for them and what it wants to mean to them. Brand positioning forms
customer’s views and opinions

Positioning is the key of marketing strategy. A strong brand positioning directs

marketing strategy by explaining the brand details, the uniqueness of brand and it’s
similarity with the competitive brands, as well as the reasons for buying and using that
specific brand. Positioning is the base for developing and increasing the required
knowledge and perceptions of the customers. It is the single feature that sets your
service apart from your competitors. For instance- Kingfisher stands for youth and
excitement. It represents brand in full flight.
Defining Values and Principle

You already know how to do this

– Your values and principle are part of your Org and Brand drivers!!!

– Keller calls principle “Brand Mantra”

Your Values, Principle, and position all are related

Keller says that associations are values, but we have a stricter definition of associations
from the IBM.

Brand Positioning Strategy

Brand positioning is an essential element of a winning branding strategy. Positioning

simply refers to how your product or service is viewed in the minds of prospects and
customers relative to other products or services available in your niche.

The termpositioning has two connotations: a vertical and a horizontal one. In terms of
the vertical connotation, the term refers to the order in which your product ranks relative
to the products of your competitors in the minds of your customers in your industry
(For example, which product comes to mind first when I say the wordcola?)

In terms of the horizontal connotation, the term refers to the qualities and attributes your

product represents in the mind of your customers, again relative to your competitors.
P a g e | 21

While you cannot directly control the ranking that your product or service enjoys in the minds of
your customers, you can influence how you position the product in terms of qualities and
attributes. That is, by properly positioning your product relative to your competitors in the minds
of your customers, you will have much more control over how your brand is perceived in the
marketplace. You will then effectively have a guide or map for how to execute your branding

Effective Brand Positioning

No matter how long you’ve been in business, chances are good that you are engaged in
developing and promoting your brand positioning strategy. You’ll invest plenty of time in the
process of evaluating your products or services in terms of market share, sales and customer
base and comparing this information to that of your competitors. You’ll work to determine how
your customers perceive your business and its major offerings and use the detailed findings to
establish your business at the proper place within that all important target market.

Your business position within the target market will determine your business’s degree of
success. If you think you can maneuver into a more profitable place, do so by adjusting your
products or services to more closely match the desired position (known as re- positioning), or
pursue strategies that change customer perception of the products and services offered by your
competitors (de-positioning).

Here are some strategic tips that can help you to be as effective as possible during your brand
positioning process:

1. Understand brand positioning as fully as you can, especially in the way that it directly
affects your business. Businesses, especially smaller ones, are very diverse in their

. Develop the most efficient method possible for gathering customer information.

Remember that you’re trying to get inside their heads and back out again with an
unvarnished look at how they see your business in terms of the benefit that it provides
for them. You might consider questionnaires, phone surveys or online surveys and offer
a small bonus to compensate customers for their valuable time.
3. Determine which of your products and/or services are the most popular or powerful,
so that you can use them to build on or adjust your overall positioning strategy

4. Rank all of your products and/or services in terms of positive customer review and in
relation to those of your competitors.

5. List the most popular group of attributes that describe your business and products
from the viewpoints of your customers and combine them to reach your ideal vector…
P a g e | 22

the position in your target market from where your business can operate at the highest
possible level of strength.

6. Product-based businesses can complete the positioning process more easily than
service based businesses. After all, your customers can see, touch and watch
demonstrations of your products to see how they work and visualize their benefits. Here
are some hints for exploring how customers perceive your business and its services

• Create simulations, descriptions or case studies showing proven results.

• Find out how customers view your services in terms of value, results and convenience.

7. Regardless of your business type, take the information about customer perception
that you’ve gathered, determine your top benefits and attributes and use them to
determine your current positioning and how far that point is from your ideal vector in the
marketplace Decide whether you are satisfied with the current positioning of your
business, or whether you need to change your strategy. Consider your target market
and decide if your business is positioned in such a manner that it maximizes every
opportunity for visibility in that market.

Finally, keep in mind that positioning can be either an active or passive process. If you
choose not to fully engage in it – it will still take place. Don’t give up the valuable
opportunity to monitor and influence the process and increase profitability
5 Factors of Brand Positioning

1. Brand Attributes

What the brand delivers through features and benefits to consumers.

2. Consumer Expectations

Competitor attributes

What the other brands in the market offer through features and benefits to consumers.

4. Price

An easily quantifiable factor – Your prices vs. your competitors’ prices.

5. Consumer perceptions

The perceived quality and value of your brand in consumer’s minds (i.e., does your
brand offer the cheap solution, the good value for the money solution, the high-end,
P a g e | 23

In order to Position a Brand…

You must decide

– Who the Target Consumer is

– Who your main competitors are

– How the Brand is similar to your competitors

– How the Brand is different from your competitors

 Where do you get this information?


Brand Positioning

A good brand positioning help guide marketing strategy by clarifying the brands

essence but goals it help the consumer achieve and how it does so in a unique way.

The result of the positioning is the successful creation of a customer focused value

proposition, a cogent reason why the target market should buy the product.

Birla Corporation Ltd. (Cement Division) introduce their new product, SAMRAT, with the
value proposition of "Aajya kal majboot har pal" with PPC (Portland Pozolona Cement)
instead of OPC (Ordinary Portland Cement) main features of SAMRAT isCorrosion
• Work ability
• Sulphate resistant
• Low heat of hydration
• Durability
• Less use of water
• Seepage Resistant
• Low Cracks in RCC
• Fineness
• Mass Concrete

Competitive Frame of Reference

P a g e | 24

A starting point in defining a competitive frame of reference for a brand positioning is to

determine Category Membership- the products with which a brand competes and which
function as close substitute.

POD's are attributes or benefits consumer strongly associates with a brand, positively
evaluated, and believe that they could not find the same extant with a competitive
brand. Strong, favorable and unique brand associations that make up POD.

POP's on the other hand, are associations that are not necessarily unique to the brand
but may in fact be shared with other brands. These types of associations come in two
basic forms:


Category POP's are associations consumers view as essential to be a legitimate and

credible offering within a certain product or service category. Competitive POP's are
associations designed to negate competitors' points-of-difference.
Choosing POP's and POD's

POP are driven by the needs of category membership (to create categ POP's) and the

necessity of negating competitors POD's (to create competitive POP's)

These are three key consumer desirability criteria for POD's-




There are three key deliverability criteria


P a g e | 25

Statement of problem:-

Objective of Research:-

The purpose of research is to discover answer to question through the application of

scientific procedures. The main aim of research is to find out the truth which is hidden &
which has not been discovered yet.
However, each research study has its own specific purpose. There are several common
objective of research as follow:-

• To study the brand positioning of “Ambuja Cement” in the market.

• To compare the major cement brands in terms of Price, Preference, Quality,

Packing and Color.

• To compare the advertisement strategy of the various cement brands.

Research Methodology - Project Research Type

• Descriptive Research

Data Sources –

• Primary Data

Research Approach

• Survey Method

Research Instrument

• Questionnaire

Data Analysis

• Logical analysis

Sampling Procedure

• Random Sampling

Sample Size

• 50 Respondents

Geographical Coverage

• Bilaspur
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According to Phillip Kotler-

“Marketing research is the systematic problem analysis, model building and fact finding
for the purpose improved decision making and control in the marketing of goods and

• In my project work I have used a questionnaires for market survey.

• In my project work I have collected information from different stockist, dealer &

• According to them only a questioners is being filled out.

Data Collection method.

Questionnaire is being used for collecting a data from dealer & retailer. A questionnaire
consists of different attributes of different brands. A dealer & retailer has to answer
different question regarding price, sales volume, discount scheme and their feeling
towards different brands in the markets. We have to identify the consumer taste &
preferences towards different product & services. We have to know about the dealer &
retailer perception towards different brand in the market.



-Position of brand among various brands

P a g e | 27

Position of brand can be calculated by calculating the Score. Score can

be calculated by dividing the sum of rank of brand given by its own brand’s
cement selling stores/outlets with total number of brands store selling its
own brand of cement .

Score = ∑ Rank of brand given by its own Brand’s cement selling stores

∑ Total number of brands store selling its own brand of cement

Note- this formula is only used in attributes like order execution time,
prices and schemes, timely communication by sales hierarch, TSO
regular visit, Regular supply, Effective Sales meeting ,Shop advantage
display, Useful giveaways ,Better Godown handling, Effective
relationship activity, TO regular visit, Technical services.

Minimum score- worst rank

Maximum score- best rank

Note -Quality of cement and Packaging of bags

Score = ∑ Rank of brand given by its other Brand’s cement selling


∑ Total number of brands store selling its other brand of cement

Minimum score- worst rank

Maximum score- best rank

Order Execution time:

Order execution time is the time taken by the Company to deliver the cement after
placing an order from company.
P a g e | 28

Brands Ultra-tech Lafarge Birla Gold Ambuja Acc

Score 3.81 2.18 2.51 3.18 2.12

• Position/Ranking : 1st Ultra-tech

2nd Ambuja

3rd Birlagold

4th Lafarge

5th ACC

Regular Supply 365 days

Brands Ultra-tech Lafarge Birla Gold Ambuja Acc

Score 5.18 3.12 2.02 4.12 2.24

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Timely communication By TSO for Rate / Scheme.

Brands Ultra-tech Lafarge Birla Gold Ambuja Acc

Score 5.12 2.01 3.52 4.64 3

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TSO Regular Visit

Brands Ultra-tech Lafarge Birla Gold Ambuja Acc

Score 5.64 2 2.52 4.80 2.11

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Shop Advantage Display

Brands Ultra-tech Lafarge Birla Gold Ambuja Acc

5.84 3.64 3 4.9 2.13

Role of Sales Promoter

Brands Ultra-tech Lafarge Birla Gold Ambuja Acc

4.32 3.1 2 4.8 2.12
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Civil Engg. Visit / Useful

Brands Ultra-tech Lafarge Birla Gold Ambuja Acc

6 2 2.12 3.21 1.21
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Tech. Services Usefulness

Brands Ultra-tech Lafarge Birla Gold Ambuja Acc

5.9 2 2.12 4.32 2.92
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Bag Quality
Brands Ultra-tech Lafarge Birla Gold Ambuja Acc

5.12 4 3.12 4.5 3.92
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Cement Quality
Brands Ultra-tech Lafarge Birla Gold Ambuja Acc

6.2 5.32 5.3 6 5.64
P a g e | 36

SWOT Analysis of the organization


Good reputation

Best Quality

High Performance

Proper channel network

Customer satisfaction


Bad reach in rural market segment

Messages are not clear

Lack of proper communication with dealer&Retailer

Slow growth rate in the rural area

• An unfulfilled customers need .

• Arrival of new technologies.

• Construction of buildings & dams , canal , over bridge in developing countries.

• No trade Barriers.


• Competition from different brand in the market

• Entrance of new company in the market

P a g e | 37

• Other brands are selling in cheaper rate

• Local brands are eating up into the market share.

• New govt. policy

Other brands would you like associated with & why?

• According to authorised dealer & Retailer & stockist, they all want to sale a
product of “ULTRA-TECH”. Other brands ,they will think according to their quality
,cost & the regular visit by T.S.O. & their Civil Engg.

Which company will dominate in the future & would you like stay with?

• According to me “ULTRA-TECH” and ambuja is going to dominate in the

future.According to the perception of dealer&retailer they like to stay with both
these company only because of their good technical service and their good
approach in their different attributes.

Who is the main influencer for brand selection?

• Quality

• Cost

• Advertisement

• Easily Availability

• Types of Schemes

What is the best medium for cement advertisement?

Medium for TV News Paper Hoarding Shop & wall Display others
Advertisement painting materials

Ranking 5 4 2 1 3 1

• 5-for Best

• 1-for worst
P a g e | 38

Any other information would you like to provide.

• In my opinion to increase a sales volume one must provide a better quality of

goods & services and deliver the goods at the right time in the target market to
the target customer.


• Ultra-tech cement has captured the whole market in Bilaspur.

• Due to their better quality of technical services is provided to the dealers and

• Due to their regular visit by their civil engg. at the time of roofing of houses of

• As no other company is providing this type of services to dealers & retailers.

• As Ultra tech cement is providing regular training to their dealers & retailers.

• In marketing four ps plays an crucial role so the management of ambuja
cement should focus in this only i.e place, price ,product ,promotion.

• A company should make a strong dealer in rural and urban areas so the
demand of customer can easily be fulfilled.

• Provide attractive schemes to the dealer & retailer so the sales volume can
easily be increased.

• Make advertisement as much as possible.

• Regular visit should be done by T.S.O, CIVIL ENGG. of a company.

• A company must provide a tour for dealer & retailer for the sale of this much
of M.T.
P a g e | 39

• Proper distribution channel should be made in rural areas.

• A regular training should be given by a company as how to deal with


• A product should be sold out at a reasonable rate.

• Dispatch of product should be made out regularly 365days.

At last I want to conclude is that “Ambuja Cement” is having a good brand name in the
mind of a dealer, retailer as well as customer also.

To increase the sales volume a company must

provide more better service in all the attributes. As it has a brand name in the international
market as well as in the national market. As it holds a 2nd position in Bilaspur District.

This project report is prepared as the partial fulfillment of two year degree programme of
MBA curriculum of Bharath University, chennai. This Research project is a compulsory
part of the academics. This research is done in the Third semester of the MBA program.

In this research, I have attempted the research about Brand Positioning. Positioning is
one of the key elements of modern marketing management (Kotler, 2000). The overall
purpose of this research is to indentify the Brand Position of Ambuja cement in Bilaspur
market. I have taken six major cement brands for this research. The whole research is
based on Dealer Authorised stockist &Retailer survey.
P a g e | 40


01 Bilaspur Siddhi vinayak Deal Birla gold 9981764544

trader er

02 Bilaspur Agrawal khad Deal ambuja 9827117732

bhandar er

03 Bilaspur Kanhya steel Deal ambuja 9300178971


04 Bilaspur Annapurna steel Deal Lafarge 248775


05 Bilaspur Luthra sales Deal Ultra-tech 930095523

er 4

06 Bilaspur Juneja traders retail Ambuja 900953563

er 4

07 Bilaspur Mahamaya steel retail U-T,Lafar.,amb 930067073

er 5

08 Bilaspur Shri ram traders retail U-T;Laf,B.G,ACC 9301516077


09 Bilaspur Vishal traders Deal Ultra-tech 9300611180


10 Bilaspur Prachi steel Deal Ultra-tech 403619


11 Bilaspur Kushi Traders Retail U-T, Lafarge 9303506765


12 Bilaspur Mahamaya cement Deal Ultra-tech 9754177823


13 Bilaspur Naresh traders Retai Ultra-tech 9754177823


14 Bilaspur Muskan traders Retai U-T, Lafarge 9329576202

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15 Bilaspur Mahamaya traders Retai U-T,Lafar.,Birla 217808


16 Bilaspur New lakshmi steel Authour.sto Ultra-tech 9770779799


17 Bilaspur Shikha steel Dealer Ambuja 9907748581

18 Bilaspur Kalyan steels Retaile Ultra-tech 9827164834


19 Bilaspur Nayan agency Dealer Ambuja 9827994053

20 Bilaspur Ramesh steels Author.stoc Ultra-tech 407487


21 Bilaspur Daduram traders Retail UT,Lafar,B.g,Ambuja 9907178090


22 Bilaspur Vinayaka Retailer UT,Lafar,B.g,Ambuja 9300618345


23 Bilaspur Mahamaya Traders Retailer Ultra-Tech 9827947442

24 Bilaspur Meenakshi Traders Author.Stoc Ultra-Tech 9826966800


25 Bilaspur Mohan Lal Tara Dealer Ambuja 222260


26 Bilaspur S.P.Steel Retailer UT,Lafar,Ambuja 9300810127

27 Akaltara Tulyshan Traders Author.Stoc Ultra-Tech 252090


28 Akaltara Ankur Traders Dealer Ambuja 9300665955

29 Bilaspur Vikas Ply Retailer UT,Lafar,Ambuja _

30 Bilaspur Saha Steel & Retailer UT,Lafar,Birla,Ambuj 9300940685

Hardware a

31 Bilaspur Maharashtra Retailer Ultra-tech 420386


32 Bilaspur Krishak Sathi Retailer Ambuja 9630090004

33 Bilaspur Sahu Traders Dealer Lafarge 322484

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34 Bilaspur Singh Traders Author.Stoc Ultra-Tech 9300333171


35 Bilaspur Manish Traders Retailer Ultra-Tech 9993251047

36 Bilaspur Sharma Traders Retailer UT,Lafarge 9300688633

37 Bilaspur Shyam Traders Retailer Ultra-Tech 9827184297

38 Bilaspur Prakash traders Dealer Acc 9827940284

39 Bilaspur Purna traders Retailer UT,Lafar,Birla Gold 9300032622


40 Bilaspur Hanu Traders Retailer UT,Birla Gold, 402675


41 Bilaspur Tanu Steel Dealer Acc 9300052666

42 Bilaspur Chabra Marbles Dealer Ambuja 652022

43 Bilaspur P.S Saluja traders Dealer Ultratech 406301

44 Bilaspur Jai Ganesh traders Auth. Ultratech 243056


45 Bilaspur J.K.Dwivedi taders Dealer Ultratech 233996

46 Bilaspur Tiwari traders Dealer Ultratech 9827199123

47 Bilaspur Shriya steels Retailer Ambuja ,Birlagold 320016

48 Bilaspur Shukla traders Retailer Ambuja 9300489217

49 Bilaspur Shiv traders Retailer Lafarge 9827113979

50 Bilaspur Rajesh traders Retailer Lafarge, Birlagold 320090

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