AMBUJA CEMENT LIMITED

AMBUJA CEMENTS LIMITED (AMBUJA CEMENT)

– A CASE OF ENVIRONMENT STEWARDSHIP

ANAND KUMAR SINGH roll # 09 PRABHU JEET SINGH roll # 34

THE COMPANY……………………Ambuja Cement started as joint sector company of GIIC and Narottam Sekhsaria & Associates in 1981Later, buying out GIICs stake, company became a private

sector venture.The company is the most cost efficient cement

manufacturer in the country. Innovation in utilizing measures like sea transport, captive

power plants, imported coal and government incentives.Major player in export of cement.Now access to 14.8 million tons annual capacityThird largest cement manufacturer in the country.Cement plants located in Gujarat, Rajasthan, Punjab,

Himachal Pradesh, Chattisgarh, West Bengal and Maharashtra

Has a grinding unit in Sri Lanka.

Performance over 5 Years………(Rs. Crores)

  2004 20052006 

(18 Months)

2007 (12

Months)

2008 (12

Months)Sales 1968 2606 6286 5705 6235Operating Profit

587 799 2247 2239 1954

Cash Profit

509 714 2168 2163 1922

Profit before Tax

384 519 1842*** 2712*** 1970***

PAT 337 468 1503 1769 1402Gross Block

3782 3827 5177 5928 7654

Net Worth

2013 2172 3484 4655 5669

Debt 1270 1127 865 330 289Cash EPS (Rs.)

28 5.28 14.29 14.26 12.62

EPS (Rs.) 19 3.46* 10.09* 11.61* 9.21*Dividend (%)

80 90** 165 175 110

Capacity-Million Tons

12.86 13.30 16.30 18.50 22.00

Production- Million Tons

10.37 12.80 22.63 16.88 17.75

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.

The Firsts & the Bests……………Environment protection measure that

conform to the worlds best. even lower than the rigorous Swiss standards of 100 mg/NM3. The air is so

clean that a rose garden flourishes right next to the main plant

Benchmarking quality standards for the industry. 

received the highest quality award - the National Quality Award. The only cement company to do so.

Its also the first to receive the ISO 9002 quality certification

Reinventing cement transportation.  Almost 90% of cement in India travels by rail or road. And in bags. Ours a bulk transporting system via the sea. Making us the first company

to introduce the concept of bulk cement movement by sea in India.

THE COMPANY……………………Parameters Compound Annual

Growth Rate %Capacity 20Sales 29Net profit 35Net Worth 30Return to shareholders 25Weighted AverageEBIDTA Margin %

33

ISSUE….In 1970s and 80s, cement plants in India seen

as : In popular perception, Cement Industry

badly PollutingDirty noisy places full of dust, cement powder and other

suspended particulate materials.

Ambuja Cement emerged as environmental stewardship in India.

The promoters of Ambuja Cement

resolved to change this outmoded, impression,

“We want to build the best Cement Plant in the world in terms of

Technology, Environmental Stewardship, Employee Welfare and Community Well Being”.

CEMENT SUSTAINABILITY INITIATIVE (CSI)

adopted the Cement Sustainability Initiative-Environmental Stewardship.

more sustainable future to meet the expectations of stakeholders

focus on corporate environmental responsibility and stewardship.

innovative and proactive engineering and technology for environmental problems.

Triple Bottom line to design and apply environmentally innovative engineering practices.

CSI launched in 2009by World Business Council for Sustainable Development(WBCSD).

The Agenda for Action:Climate protectionFuels and raw

materialsEmployee health and

safetyLocal impactsInternal business

processesFurther, plants,

quarries and transport operations impact the local ecology.

High level carbon dioxide emissions.

Other issues: emission reductionuse of fuels and raw

materialsemployee health and

safetylocal impacts on land

and communities, and internal business

processes.

ENVIRONMENTAL ISSUES IN CEMENT MANUFACTURING PROCESS

Green House Gas Emissions 5% of global anthropogenic CO2 emissions Average intensity of carbon dioxide emissions – 222 kg of c/t of

cement. Main environmental issues associated with cement production :

emissions to air and energy use.from:

o Chemical process of making clinker (52 per cent ),o combustion of fossil fuels in the kiln (36 per cent), o Indirect emissions from purchased electrical power (12 per cent)  Air Pollution – Dust Emission

Release from the kiln exhaust - Source of dust emissions. Compounds – all extremely hazardous to air breathing terrain life

forms.

Nitrogen Oxides Nitrogen oxides (NOx) are generated from fuel combustion at high

temperatures.

ENVIRONMENTAL ISSUES….contd… Sulphur Dioxide

Sulphur dioxide (SO2) from both cement raw materials and fuels.  Emissions to water

Number of wet process kilns has reduced considerably. Water used for preparation of raw material slurry. Water is also consumed in the cooling of equipment. Warm the ecological balance further.

Alternate Fuels Alternative fuels Environmental benefits of using alternative fuels include”

Reduced consumption of nonrenewable fossil Lower greenhouse gas emissions Avoidance of disposal requirement for by-products and wastes.

Rehabilitation of Land to be committed to restoration, rehabilitation of sites once mining

ended.

Global Cement SectorGlobal cement production in 2003 was 1.94

billion tonsIndia – second largest

• – accounted for 6.20% of the production.

CHINESE CEMENT INDUSTRYworld’s largest cement producer China spent about $250 billion on infrastructure while (India spent $35 billion)very small, scattered both geographically & in

ownership.Chinese output in vertical-shaft kilns (v/s Rotating

cement kilns) Low technologyLabour intensive shaft-kiln plants.80% produced by small enterprises.China laws Modelled after US or European legislation to deal with air pollution , solid waste, water pollution

etc.

INDIAN CEMENT INDUSTRY……..Triggered by partial decontrol of the cement

industry in 1982.Full decontrol in 1989.

Mature and world class industryProactive in adopting technological advancementsWorld Leader in Technology Adoption, Information

Sharing and Energy Conservation.Ninety three percent (93%) total industry based on

modern and environment friendly dry process technology.

INDIAN CEMENT INDUSTRY…….contd…Induction of advanced technology helped

conserving energy & fuel.Substantial savings in raw materials.Utilization of low grade limestoneContribute towards increased profitability

coupled with conservation of limestone deposits

Reducing greenhouse gasesEffect economy in energy consumption.

:

INDIAN CEMENT COMPANIES AIM AT

Use of cheap alternate fuels.Efficient dust collection systemsElimination of transfer points in material

conveying circuitsAdoption of modern maintenance practicesBest of our industry matches quite well with

world standards in terms of energy (India 665 against 690 of Japan)

Pollution norms (SPM of 40 mg/NM3 in India against 20 of Japan)

But average performance of the Indian industry is lagging behind

AMBUJA CEMENTS LIMITED (AMBUJA CEMENT)

AN ENVIRONMENT STEWARDSHIP Position of inspirational leadership.Progressive in adapting to innovationTo improve the technologyProcesses at their free will with the visionary

directions from the founders.

COMMITMENT TO SUSTAINABLE DEVELOPMENT

 Sustainable Development:Environmental concerns are texturedAll manufacturing processes and business decisionsCorporate mission-Ambuja cement 2000, reads as follows:

The company would strive for an environment of beyond compliance in plants and mines

to raise environmental awareness in the neighbouring community.

Adopt environmentally sound technologies For optimum utilization and conservation of natural

resources. Vision 2000 identified key issues, opportunitiesAction to be integrated into its management framework.

Ambuja cement is committed to……Implementing an ISO 14001 certified EMSReducing CO2 emission per ton of productReducing consumption of virgin raw material Recognizes that profitability & social

awareness are not antagonistic but interdependent.

Established the Ambuja Cement Foundation (ACF)

Community development in the surrounding areas

Rural development schemesEmpowering the stakeholders (villagers) to

help themselves. 

TOWARDS WORLD CLASS STANDARDS……………..

CEMENT MAJOR In terms of productivity but also promoting continual improvement of environmental performance, energy efficiency and resource conservation and Spurred people into higher efficiency

  innovative practices and technology in production process

Use of Selective Mining Technique

Use of alternative raw materials and natural cementing material

 Whole of life Approaches

Cost Effective transportation also led to Environmental Friendly movement of cement consignments.

TOWARDS WORLD CLASS STANDARDS……………..Water ManagementWater Treatment MeasuresSewage Water Reclamation plantRecycling and reuse of materials Using alternative fuels and reusing waste

materials, including petroleum coke (per coke), waste oils and used solvents- environmental stewardship.

Ambuja Cement’s efforts for Energy Conservation

Corporate Safety & Heath PerformanceExposure to dust and high temperaturesContact with allergic substancesNoise exposure

AWARDS : ENVIRONMENTAL TRACK RECORD OF AMBUJA CEMENTFirst Prize for Environmental Management System

(EMS) by Gujarat Pollution Control Board in 1991.Nation’s First Award on Environmental

Performance by Government of India in 1992.“Gold Star Eco-rating” by Tata Energy In 1999, First cement company to have been conferred

Quality System as per ISO: 9002.Government of India 1991-92 through Rajiv Gandhi

national Quality Award.National Award for the second best Environmental

ExcellenceRajiv Gandhi Environmental Award for Clean

Technology for the year 2002-03.

AWARDS : contd…….Best Environment Manager from the Centre for

Science and environment (CSE)Ropar grinding unit awarded “National Award

for Prevention of Pollution” for the year 2002-2003.

Company’s pioneering efforts – use of high volume fly ash concrete by ACI and CANMELT, Government of Canada.

Company’s mines awarded various prizes and recognitions by the Directorate of Mines Safety.

Best Corporate Citizen by FICCI.“Excellence in Cost Reduction” for the year

2003.CAPEXIL accorded “Special Export Promotion

Award” for the year 2002-2003.

Environmental Stewardship at Ambuja Cement……

Innovative practices and technology in production process

Using selective mining techniques.Recycling and reusing materials.Using alternative raw materials like blast furnace slag

and fly ash, byproducts generated from steel manufacturing and power stations, among others.

Using natural cementing materials such as pozzolonaUsing alternative fuels and reusing waste materials,

including petroleum coke (per coke), waste oils and used solvents.

Cement producing it is an energy and resource intensive process.

more efficient use of natural resources and energy, and engaging with local issues in emerging markets.

Meet the expectations of stakeholders and maintain their “license to operate” in communities across the world.

Process innovations which achieve greater resource/energy efficiency and long-term cost savings to reduce environmental impacts.

ENVIRONMENTAL MANAGEMETN DIVISION PRIME CUSTOMERS

Our Sensitive Customers

Surrounding Community

Regulatory Bodies

Environmental Auditors

Plant Operation Department

ProductionElectricalMechanicalCivil

Mines & Geology Department

Commercial DepartmentLand/ACFHorticultureRaw MaterialPurchase & Stores

AMBUJA CEMENT FOUNDATION (ACF)Extensive programme of rural development and community

development for the villages surrounding its plants.bring about all-round development make people self-sufficientafforestation and water/energy conservationparticipation of villagers and local government bodies.

Community development in the areas of: Water management Roof water harvesting Health care and education Agricultural extension and increased self-employment Environmental conservation Adult education and many more activities.

Govt. of Gujarat has appointed ACF as a Project Implementing Agency for executing Integrated National Watershed Project in Jaffarabad Taluka, Gujarat.

Helped Ropar (Roopnagar) District of Pubjan to become 100% literate.

THE FUTURE…………………………..Set the trend for

‘beyond compliance’Continuously working to improve

environmental performance

Incorporate environmental factors into planning decisions

Monitor activities impacting surrounding environment

Comply with environmental laws and regulations

Invest in capital equipment with state-of-the-art technology

Restore the environmentEngage effectively with

its local communitiesStrategies to effectively

communicate its progress with various stakeholders

Provide information on the issues that concern them

Recognizes that there is also need for innovation in techniques for engaging local communities

In empowering and developing employees

Profoundly

ANAND KUMAR SINGH roll # 09 PRABHU JEET SINGH roll # 34