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PIONEER INSTITUTE OF PROFESSIONAL STUDIES (PIPS) (Diligence & Excellence) Since 1996 SWOT ANALYSIS Phase # I & II Ambuja Cement Limited SUBMITTED TO : SUBMITTED BY : Prof.
Vidushi Sharma Akhilesh Shrimore MBA-IIISem(MH-I) Roll No. -10010011 CONTENT : * Company profile * SWOT analysis * Recommendations/ suggestions * Conclusion * References & sources COMPANY PROFILE * Ambuja Cements Limited formerly known as Gujarat Ambuja Cement Limited is a major Cement producing company in India.
The Group’s principal activity is to manufacture and market cement for both domestic and export market. * Founded in : 1983 * Founded by : Narotam Sekhsaria * The company’s management control got acquired by the global cement major Holicim in 2006. PROMOTERS Mr. Narotam Sekhsaria Mr. Suresh Neotia Mr. Onne Van Der Weijde Mr. A. L. Kapur Mr. B. B. Tandon Mr.
P. K. Laheri Mr. Manmohan Malhoutra Mr. Sharadchandra Kale VISION To be the most admired and competitive company in the cement industry”. MISSION Create value for all – Delighted customer Motivated employees Enlightened partners Energized society Loyal shareholders Healthy environment TOP MANAGEMENT CHAIRMAN : N S Sekhsaria VICE CHAIRMAN : Paul Hugentobler DIRECTOR : M L Bhakta Markus Akermann Nasser Munjee Rajendra P Chitale Shailesh Haribhakti Omkar Goswami COMPANY SECRETARY : B L Taparia MANAGING
DIRECTOR : Onne Van Der Weijde PRODUCTS PRODUCT NAME UNITS Cement – Metric Tonnes Clinker – Metric Tonnes CORPORATE OFFICES Head Office : MUMBAI Elegant Business Park, MIDC Cross Road ‘B’, Off Andheri – Kurla Road, Andheri (E), Mumbai 400059 Tel: 022 – 40667000 LOCATION OF MANUFACTURING UNIT * Rabriyawas (Rajasthan) * Ambujanagar (Gujarat) Dhaulagiri(West Bengal) * Suli ; Rauri(Himachal Pradesh) * Daburji(Punjab) * Maratha Cement Works (Maharashtra) FINANCIAL ASPECTS OF THE COMPANY Year | 10-11 | 09-10 | Sales(Cr.
) | 4411. 54 | 4107. 15 | Gross Profit (Cr. ) | 1304. 69 | 1328. 27 | Depreciation (Cr. ) | 213. 48 | 176. 79 | Interest(Cr. ) | 48. 69 | 22. 43 | Taxation(Cr. ) | 336. 23 | 318. 16 | PBDIT(Cr. ) | 2,074. 70 | 2,104. 38 | PBDT(Cr. ) | 2,026. 01 | 2,081. 95 | E P S(Cr. ) | 7. 28 | 7. 79 | OPM(%) | 27. 77 | 31. 53 | GPM(%) | 28. 86 | 31. 93 | NPM(%) | 16. 70 | 20. 51 | Dividend Per Share(Cr. ) | 2. 60 | 2. 40 |
Net Profit / Loss(Cr. ) | 754. 98 | 853. 40 | SHAREHOLDING PATTERN – AMBUJA CEMENTS LTD. Holder’s Name No. of Shares % Share Holding Promoters 12081909 0. 79% Foreign Promoter 759661201 49. 60% Foreign Institutions 363631987 23. 74% Financial Institutions 19688942 12. 85% General Public 117606774 7. 68% N Banks Mutual Funds 27357102 1. 9% Foreign NRI 17312703 1. 13% Other Companies 8847097 0. 58% Others 1036570 0. 07% Foreign Ocb 12870 0. 00% TOTAL 1327237155 100% SWOT Analysis STRENGTHS * ACL enjoys a reputation of being one of the most efficient cement manufacturers in the world. * The company has strategic partnership with Holcim, which is the second largest cement manufacturer in the world.
Having major share of Holcim so can take advantage of being MNC. * Best Quality. * Good Packaging. * Logistics Management. * Low Energy Consumption. * Ability to sell total production. * Consumer Preferences. * Consistency in Performance. * Cost Leadership. * IT integration. * Organizational structure. * Lower energy cost due to improved value coal and use of non conventional fuels. * Lower transportation cost due to increased transport through sea router for bulk shipping. * Excellent management team to cope with changing environment. * Very less dependent on government coal and power. High distribution efficiency and sound to cope up with economic situation. * Processing own Jetty and Ships useful for timely and cheap transport. * Lower transportation cost due to increased transport through sea router from bulk shipping. * Excellent innovation engineering and technological skill useful for operating excellence. * Excellent management team to cope with changing environment. * The supply chain management system in the ACL is quite focused and good. WEAKNESSES * No International presence * Not able to exploit the advantage of being near the sea coast. * No national geographic coverage as in case of competition. Very limited fragmentation of plant, which avoid is presence in very sub regional markets. * The pace of new capacity addition by the industry has not been as fast as previously, therefore pricing pressure. * Does not match international Quality standard. OPPORTUNITIES * There is increase in Demand in India * They can undertake some Projects in Future * They can go Global * Company’s financial condition is good so they can start a new manufacturing unit and can increase production. * Basic raw material is easily available hence they can reduce cost to compete with other. Housing construction in the urban, & affordable housing loan provision by bank, that can hike demand. * ACL Can get more foreign exchange by increase bulk cement capacity through the ship. * Easy loan availability for housing finance. * Increased investments in infrastructure. * To penetrate in Southern India. * Not many restrictions by government. THREATS * Increasing Competition day by day. * High Capital Cost. * Raw Material ,Transportation and Power cost are increasing so it will lead to low profitability. * Threats from the economic cycles. I. e. Recession or growth. Government policies, local political changes & interruption in management. * Exchange rate fluctuation having direct effect on bottom line as well as on export. * Market competitor’s price. * Surge in Oil prices. * RECOMMENDATIONS 1. Acquire poor performing cement factories outside India. 2. Venture into new business that requires cement. CONCLUSION Today, ACL has become one of the larger and profitable cement units in the Indian Cement Industry. It has done his job within a very short time by providing itself as an efficient unit.
From the very beginning it has maintain high quality standard and it has been approved by granting it ISO 9002. Now slowly it is going towards the international market and has started to spread its wings over there. It is slowly and steadily moving towards the grand success. REFERENCES * www. ambujacement. com * www. wikipedia. org/wiki/Ambuja_Cements * www. scribd. com/doc/12881357/Gujrat-Ambuja-Cement * www. companiesandmarkets. com/… /ambuja-cements * www. live-pr. com/… /ambuja-cements-limited-ambujace * www. marketresearch. com/… /Ambuja-Cements-Limited THANK YOU !
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