ultratech cement ltd

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Presented By Biswajit Singh PGDM 2015-17

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Presented By Biswajit SinghPGDM 2015-17

About the companyo Flagship company of Aditya Birla Groupo It’s a division of Grasim Industrieso India's biggest Cement companyo India’s largest exporter of Cement clinkero Capacity: 62 million Tons per annumo Establishments in India, Sri Lanka, UAE, Bahraino In India, 11 integrated plants, 1 white cement plant, 15 grinding units, 4 terminals

VISION AND VALUESVisionoTo be a premium global conglomerate, with a clear focus on each of

the businesses.MissionoTo deliver superior value to the customers, shareholders, employees

and society at large.Valueso Integrity : Acting and taking decisions in a manner that is fair and

honest. oCommitment : On the foundation of Integrity, doing all that is

needed to deliver value to all stakeholders. oPassion : A voluntary, spontaneous and relentless pursuit of goals

and objectives with the highest level of energy and enthusiasm.oSeamlessness : Thinking and working together across functional

groups, hierarchies, businesses and geographies.oSpeed : Responding to internal and external customers with a sense

of urgency.

CURRENT GOALS AND OBJECTIVESo Its goal is to become a US$ 65 billion Group from US$ 30 billion. It expect the Company to contribute significantly to this growth and earnings.

o Ultratech Cement is the country’s largest exporter of cement. The export markets span countries around the Indian Ocean, Africa, Europe and the Middle East. And it wants sustainability in the position where it is today.

GLOBAL FOOTPRINTS

UltraTech Cement has a significant presence in the Middle East with the acquisition of Star Cement by UltraTech Cement Middle East Investments Ltd in 2010. Star Cement is a leading manufacturer of cement in this region with an installed capacity of 3 MTPA. It has 1 clinkerisation plant and 2 grinding units in the UAE and 1 grinding unit each in Bahrain and Bangladesh.

UltraTech also has a bulk terminal in Sri Lanka under UltraTech Cement Lanka (Pvt.) (Ltd.).

Product Portfolio

o Ordinary Portland Cemento Portland blast-furnace slag Cemento Portland Pozzolana Cemento Cement complying with European and Sri Lankan standard specifications

COMPANY LIFE CYCLE

Market Share of Cement Industry

ACC10%

Ambuja10%

Ultratech18%

India5%Japee

7%

Others50%

SWOT Analysis

STRENGTHS: Double digit growth rateoCement demand has grown continuously with strong

economic growth; derived from:• Growth in housing sector (over 30%) key demand driver;• Infrastructure projects like ports, airports, power projects,

dam and irrigation projects• National Highway Development Program• Bharat Nirman Yojana for rural infrastructure• Rise in industrial projects• Export potential also demand driver

WEAKNESS: Low value commodity oCement Industry is highly fragmentedo Industry is also highly regionalizedoLow value commodity makes transportation over long

distances un-economical

OPPORTUNITIES: Demand & Supply gapoSubstantially lower per capita cement consumption as

compared to developing countries (1/3rd of world average) Per capita cement consumption in India is 82 kgs against a global average of 255 kgs and Asian average of 200 kgs.

oAdditional capacity of 20 million tons per annum will be required to match the demand.

o Limited green field capacity addition in pipeline for next two years, leading to favorable demand supply scenario.

THREATS: Rising input costsoGovernment intervention to adjust cement prices.oPossibility of over bunching of capacities in the long term as

some of the players have already announced new capacities.oTransportation cost is scaling high; bottleneck due to loading

restrictions.oCoal prices climbing up; industry players say current shortage

of coal in the country is estimated to be over 10million tones.

PORTER’S 5-FORCE MODEL ANALYSIS:

BCG Matrix

In the BGC Matrix, Ultra tech Cement is coming under Star. Its means the company position is good in the market, company have option to use different type of strategies. Company should not use defensive strategy because the current position of company not bad. Company can use Diversification, Intensive and Integration strategies.

Financials

Built To Last : SustainabilityThe sources of competitive advantage identified for UltraTech are:o Sourcing of Raw Materials: UltraTech's greatest

strength is its raw material sourcing. Limestone quarries are usually leased from the government on a long-term basis (usually at least 25-30 years). UltraTech's capabilities in identifying, and leasing, higher quality raw material quarries results in significant cost savings for them. o Fuel used in Manufacturing Process: The

manufacturing process offers no distinct competitive advantage to UltraTech or its largest competitor ACC.o Financial and Human resource advantage:

UltraTech, being a part of the Aditya Birla Group, has access to the deep pockets of its promoters, as well as human capital of the highest quality.

Blue Ocean StrategiesCost leadership:o Striving to become a cost leader by means of setting up captive power plants,

and /or up-gradation of technology to enhance productivity, is increasingly becoming critical for large cement players in this sector.

Rising Exports:oDue to the increasing construction activity in the Middle-East, exports will

constitute a major sales driver. Hence, the coming years would see companies scrambling for bases on the Western coast to minimize their export transportation costs.

Retail Stores:oA unique concept, which Ultratech is experimenting within recent times, and one

that is important for the future, is to continue setting up retail stores. Other companies like Asian paints, and most recently Tata Steel have tried a similar concept.

Relationship Management:oUltratech focus on managing its relationships with importers, exporters,

distributors, warehouse providers, wholesalers, retailers and dealers for their long-term profitability

CONCLUSIONoAs India is the second largest producer of cement in the worlds many

big player presents in the market after that Ultratech cement increases his market share due to the high growth rate of real estate.

oBecause of continuously growth of ultra tech cement after few year company may occur top cement manufacturer in India.

oAfter SWOT analysis of Ultratech I found that company has many strength, but few weakness also present,

o There are various opportunities for company in India and other Asian countries because the infrastructure is continuously developing.

oCompany has won the best Employer award in 2007,so young generation have various career opportunities in it.

oOverall performance of company is increasing continuously in each sector like as Production, HR , Marketing it is good for company.

THANK YOU