Professional Documents
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PROFESSIONAL STUDIES
A
PRESENTATION ON
SWOT ANALYSIS
OF
“ULTRATECH CEMENT LIMITED.”
Submitted To Presented By
Prof.Nihit Jaiswal Traun Nayak
MBA III Sem
Sec R
DEFINE THE BUSINESS AND COMPANY
Ultratech Cement Limited is among the world’s top 10 cement
companies. The company has an annual capacity of 48.8 million
tones, and manufactures and markets ordinary Portland cement,
Portland blast furnace slag cement and Portland pozzalana
cement. It also manufactures ready mix concrete.
The company has eleven integrated plants, one white cement
plant, twelve grinding units and five terminals — four in India
and one in Sri Lanka.
Ultratech Cement is the country’s largest exporter of cement
clinker. The export markets span countries around the Indian
Ocean, Africa, Europe and the Middle East.
The company's subsidiaries are Dakshin Cements Limited,
Harish Cements Limited, Ultratech Ceylinco (P) Limited and
UltraTech Cement Middle East Investments Limited
VISION AND MISSION
VISION: - To be a premium global conglomerate, with a clear
focus on each business.
MISSION: - To deliver superior value to our customers,
shareholders, employees and employees and society at large
VALUES:-
Integrity
Commitment
Passion
Seamlessness
Speed
PRODUCTS MIX
Ordinary Portland cement
Portland blast furnace slag cement
Portland Pozzolana cement
TOP MANAGEMENT
TOP MANAGEMENT:- Executive President & Chief
Board of Directors
Financial Officer
Mr. Kumar Mangalam Birla, Chairman
Mr. K. C. Birla
Mrs. Rajashree Birla
Mr. R. C. Bhargava
Chief Manufacturing Officer
Mr. G. M. Dave Mr. R.K. Shah
Mr. N. J. Jhaveri Chief Marketing Officer
Mr. S. B. Mathur
Mr. S.N.Jajoo
Mr. V. T. Moorthy
Chief People Officer
Mr. S. Rajgopal
The last few years of this decade have been good for
cement companies as prices have remained high, and
hence profits have been good. In the same period, Gujarat
Ambuja Cements and ACC have shown the same trends of
increasing sales growth and capacity utilization of Gujarat
Ambuja Cements and ACC both are growing continuously
because of the increase in the demand of the cement in this
scenario and they are very effective in meeting the
demand of the consumers by doing their best performance.
PROCESS BENCH MARKING
Due to similar raw material inputs and production
processes, there is no significant differentiation in the
cement produced across firms and thus they follow the
standardized process of manufacturing. But it can
follow the Manufacturing Process of its largest
competitor ACC, though ACC enjoys lower fuel cost.
However, this is not sustainable has already started
switching to coal. Similarly it can have the advantage
of coal fuel.
STRATEGIC BENCHMARKING
Can adopt the strategies of ACC cement i.e.,
Retail Stores: A unique concept, which ACC is experimenting with in 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.
STRENGHTS
Production
The company's production facilities are spread across 11 integrated plants, one
white cement plant, 12 grinding units, and 5 terminals — 4 in India and one in Sri
Lanka.
High quality 17.64Mn.Ton cement production in 2009-10.production is increasing
annually.
Annual production capacity of 23.10 million tones.
Use of high-end equipment such as the Gamma Metrics Machine and the X-ray
Analyzer ensures that each product passing out of Ultraech manufacturing facility
adheres to global standards of quality and performance.
Logistics
Can directly deals with the limestone tenders and thus the middle man do not
The Aditya Birla Group the eighth largest cement player in the world.
UltraTech's products include Ordinary Portland cement, Portland
Pozzolana cement and Portland blast furnace slag cement.
The company exports over 2.5 million tons per annum, which is about 30
per cent of the country's total exports.
Ordinary portland cement is the most commonly used cement for a wide
range of applications. These applications cover dry-lean mixes, general-
purpose ready-mixes, and even high strength pre-cast and pre-stressed
concrete.
OPC is used for applications, such as commercial buildings, industrial
constructions,
multi storied complexes, cement concrete roads and heavy duty floors.
PPC cement is used for big construction like dam and thermal power plant,
Distribution Channels
The Company has a network of cement
Finance
Production for the Aditya Birla Group company – UltraTech Cement, for
Gross sales increase from 7160 cr. to 7729 cr.(from year 2009 to 2010)
EBIT increase from 1487 cr. to 1706 cr.(from year 2009 to 2010)
PAT increase from 977 cr. to 1093 cr.(from year 2009 to 2010)
EPS (Rs.) increase from 118.94 to 127.65 Rs/share (from year 2009 to
2010)
Human resource
Officially named as the Rajiv Gandhi Setu the bridge will provide an
alternative route to south Mumbai from the western suburbs.
WEAKNESSESS
Raw materials
Not available in all the places.
Operations.
High Power/ Fuel costs.
Human Resource
Due to openness in the organization work culture is very informal that will
Marketing
Lack of awareness program for consumers due to low promotion mix.
Delay in supply.
Health
Highly dusty environment at the time of dumping the cement is hazardous for health.
Others
Cement industry is highly fragmented
The cost of transporting cement is high and this keeps cement from being profitable over
long distances. In other words, shipping cement costs more than the profit from selling it.
The cement industry has recently streamlined its production efforts, using dry
manufacturing instead of wet, which is heavier and more time-consuming.
OPPURTUNITIES
With the low per capita consumption of cement in India — 102 kg compared
to the global average of 260 kg (China: 429 kg, Malaysia: 529 kg and South
Korea: 951 kg) —- and the emphasis on infrastructure development, Ultratech
has ample opportunity to ride the growth curve.
Institutional market like corporate and offices, school society complexes are
growing in large scale, which will increase the requirement.
Conti…
People are opting for more stable structures and intensive use of cement is
taking place, even government is spending heavily on infrastructure
project Thus, this is the right time to fully tap these markets.
As Indian core industry is also growing at rate of nearly 10% per annum it
is having a good future.
Cheep priced brand are grabbing rapidly a large chunk of lower income
customer base.
Coal prices climbing up industry players say current shortage of coal in the
country is estimated to be over 10 million tons.