Gujarat Ambuja: Competitive Advantage through Logistics

33165 -Swapnil Mhaske -Nandhini Tamilselvan

Overview of Cement Industry in India

India the second largest cement producing country after China producing 151.2 MT. Total production expected to rise to 236.16 MT in FY11 and 262.61 MT in FY12. Cement production dominated by 20 company which accounts for 70% of total production. The consumer of cement is Maharashtra 12.18% followed by U.P. With Indian GDP expected to grow at faster rate the cement market has to fuel the need of Indian infrastructure.

Gujarat Ambuja Cement - Standing

Company ACC Production 17,902 Installed Capacity 18,640 14,860 17,000 14,115 8,810 6,680 6,531 6,300 5,470 5,113 Ambuja Eastern - CTG Bhatapa Chhattisga Dry ra rh Name of the Company Gujarat Ambuja Gujarat Ambuja ( G ) Gujarat Ambuja ( G ) Locatio State n Darlagh Himachal at Pradesh Ropar Punjab Process Used Grinding Unit Grinding Unit

Gujarat Ambuja 15,094 Ultratech Grasim India Cements JK Group Jaypee Group Century 13,707 14,649 8,434 6,174 6,316 6,636

Bhatind Punjab a

Ambuja Cement Pali Raj . Ltd .

Rajasthan Dry Dry Grinding Unit

Ambuja Cement Kodinar Gujarat Ambuja Eastern Sankrai West l Bengal

Madras Cements 4,550 Birla Corp. 5,150

Basic Characteristics Of Cement industry

Cement Industry does not suffer from rapid technological obsolene. Does not suffer from shifting of consumer trends. Only the very efficient player can survive. Availability is the name of the game,absence from market may lead to loss of market share. Product to be place in the right market, at right time, reaching the right customer.

evitaitinI citsigoL

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Initiative GACL as Cost Leader & Market Leader

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Recommendation to top management for Immediate Action.

Effective Order Processing System.

Inventory Management

Helped GACL to cut Inventory carry cost drastically

Packaging

Transportation

WAREHOUSING

GACL Supply Chain

uel Suppliers Quarries Clinker Production Clinker Storage Grinding Cement Bulk Stor.

er Raw Material Packing Export Corporate Comp.

Cement Bag Stor. Retailer Wholesalers Builder

all & Indv Contr.

Govt .& Large Const. Compa

Shortcomings Of Supply Chain & Operations

The plants are quite far from the area of mines like now they are procuring the coal as far as from Bihar & Meghalaya. They seems to be over dependent on the coal. They are still not using the foreign technologies in full swing.

Suggestions
GACL need to enhance its distribution network in South & West. Since the price of fuel, freight and power are increasing hence it needs to implement latest technology to improve the overall efficiency. Compared to its major competitors it has low installed capacity hence it needs to build new production plant and even can consider options of some acquisitions. They must implement the foreign technology in full swing to further increase the operating margin. They need to focus on other source of energy like natural gas.