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Expected
Demand (2025)
550-600
MMTPA
MANUFACTURING - COST ELEMENT ANALYSIS
MARKET SHARE INDIAN CEMENT INDUSTRY
ABOUT AMBUJA CEMENTS VISION & MISSION
ABOUT AMBUJA CEMENTS - PHILOSOPHY
LOCATIONS
Darlaghat, HP Nalagarh, HP
Ropar, Punjab
Roorkee, Uttarakhand
Sankrail, West Bengal
01 02 03
In plant logistics / Improve customer and Brand development
Production Planning channel service and management
Control Vs Operational through advertising
Excellence to gain Cost
leadership
INVENTORY MANAGEMENT
GACL has well developed system for the inbound Raw Material . It extract
limestone from near by mines and is transported to the production site with the
help of OBC (overland Belt Canveyar) and in some case with help of trucks.
ADAPTION OF TECHNOLOGY
PACKAGING
Packaging innovation at GACL ia a landmark in the history of cement
industry
It follows International Norms for different types of cements
It provides information about quality date of mfg , location of plant
The journey begins with the use of HDPE (High Density PolyEthylene.)
TRANSPORTATION
Effective transportation strategy is responsible for the product to be
placed in the right market at the right point of time and reaching the
customer.
Goods can be transported by road and rail.
In all by road transportation 18% of the total cost is freight , which has
been paid .
Road transport beyond 200 km is not economical
Therefore 55% is managed by Railway.
Problem by Railway are inadequate availability of wagons especially on
western railway and south eastern railway.
TRANSPORTATION
MANY looked for SEA ROUTE TRANSPORTATION
It is cheaper than other mode
It also reduces losses in transit
It has taken full advantages of Multi Modal Transportation
And has become 1st Cement company in India to use water transportation.
THEREFORE GACL has become the lowest cost supplier for the market.
GOOD REPUTATION
Biggest Opportunities
Today GACL is the most efficient player today in Market.
GACL was the Rule Maker.
Can Persue Growth and New Business Development through channels and
Operational Activities .
ASSETS
GACL has plants terminal at Kochi in Kerala
Entered MOU with cochin port Trust for building Storing and packaging
Infrastructure in Wellington Island (Kerala)
GACL had set up captive backwater and Jetty Facilities in Gujarat ,
Maharashtra & Kerala
A Fleet around 350 Self Finance Trucks and railway siding in its factory
Premises .
ALL THIS TANGIBLE ASSETS CREATED TO REDUCE COST AND ENHANCED
TRANSPORTATION.
WEAKNESS AND THREATS
Do not have a huge market and hence scale of economy
Could not serve wholesale market
Lesser technological changes
Product differentiation
Freight intensive industry
Many competitors
Susceptible to Government Rules and Regulations, Recession
WEAKNESS AND THREATS
Deals primarily with cement and concrete while many global players manufacture
other construction materials along with cement to provide greater portfolio to the
customers.
Facing strong competition from Indian and Global players in cement sector.
If it tries to increase its global operations, it would face tough competition and
moreover, each country has different policies that might hamper its expansion.
RECOMMENDATIONS
THE CEMENT INDUSTRY
Regional Pricing Non uniform input costs and zonal capacity imbalances
Too many regional players, Standard Products, Simple technology and limited
Fragmented Market R&D requirement
Value Added Services Ready Mix Concrete, Training and site inspection by qualified engineers
* All RM consumption fig. are approximate and only main raw material has been mentioned
ADOPT EFFICIENT SCM MODEL
Make to Forecast
Extra capacity in outbound logistics, to absorb demand
Reduce the number of "high variation, low demand" SKUs
Minimum order-size policy of a full truckload is recommended
Extra warehousing capacity should be available in anticipation of the need
Invite Regular customers to participate in collaborative programs
Try to avoid lead-time order cycle as it could create demand peaks
Buffer high-variance SKUs with higher levels of inventory.
ADOPT CONFIGURE-TO-ORDER (CTO) SCM DESIGN
CTO maximizes the benefits of the Raw-As-Possible (RAP) principle
CTO usually increases the customer lead time but offers flexibility in product
configuration
Grind-to-Order (GTO) and Pack-to-Order (PTO) aggregate demand in the
manufacturing process reduces variability and improves forecast accuracy. Their
implementation requires a continuous information flow and close coordination
between order processing and manufacturing.
FORM STRATEGY TO TARGET SOUTH INDIA
ALTERNATIVE/SUPPLEMENTARY SOURCE OF FUEL
Bio Fuel (Bio Mass / Agriculture waste / Animal Waste / Rice Husk etc.)
Waste Products
Solar Energy / Wind Energy
PetCoke (Petroleum Coke)
Polythene Bags
Tyre Chips
TRANSPORTATION AND LABOR OPTIMIZATION
Avoid Reverse Logistic e.g. Dispose of rejected by auctioning them off.
Use Automated loaders wherever possible
Have 2-3 more Rail Sidings (e.g. Ghaziabad)
Use Road Transport for only last mile connectivity preferably less than 200 KM.
Warehousing only at ports in South India
Re-use Self Financed Vehicles for multiple tasks except for Transportation
Adopt Vertical Integration of Supply Chain avoid Outsourcing
Adopt RFID technology.
VALUE ADDED SERVICE
E.g. - Cement resistance to Water to protect corrosion of metal inside
Consultation Service / Architecture Guidance
Ready Mix Concrete.
Thank you