ULTRA TECH ULTRA TECH CEMENTCEMENT

ORGANISATIONAL STUDYORGANISATIONAL STUDY

BY: RAUNAK DOSHI 1ST MBA ‘M’

HISTORY HISTORY The Aditya Birla Group is the 11th largest cement The Aditya Birla Group is the 11th largest cement

producer in the world and the seventh largest in producer in the world and the seventh largest in Asia.Asia.

Incorporated on 24 August 2000 as L&T Cement Incorporated on 24 August 2000 as L&T Cement Limited. Limited.

Cement business of Larsen & Toubro Limited Cement business of Larsen & Toubro Limited demerged and vested in company in 2004.demerged and vested in company in 2004.

Grasim acquired management control in July 2004.Grasim acquired management control in July 2004. Together with Grasim, one of the largest cement Together with Grasim, one of the largest cement

producers in India.producers in India. Name changed to UltraTech Cement Limited with Name changed to UltraTech Cement Limited with

effect from 14 October 2004.effect from 14 October 2004. Narmada Cement Company Limited amalgamated Narmada Cement Company Limited amalgamated

with UltraTech in May 2006.with UltraTech in May 2006.

PRODUCTS OFFEREDPRODUCTS OFFERED

Ordinary Portland cementOrdinary Portland cement Clinker 90.50%Clinker 90.50% Gypsum 4.00%Gypsum 4.00% Fly ash 5.50%Fly ash 5.50%

Portland blast furnace slag cementPortland blast furnace slag cement Clinker 70%Clinker 70% Gypsum 6%Gypsum 6% Slag (Blast Furnace) 24%Slag (Blast Furnace) 24%

Portland Pozzolana cementPortland Pozzolana cement Clinker 66%Clinker 66% Gypsum 4%Gypsum 4% Fly ash 30%Fly ash 30%

MISSIONMISSIONTo deliver superior value to our To deliver superior value to our

customers, customers, shareholders, employees and shareholders, employees and society at large.society at large.

VISIONVISION

To be a premium global To be a premium global conglomerate with a clear focus on conglomerate with a clear focus on each business.each business.

CustomerizationCustomerization Quality consistency Quality consistency Product rangeProduct range Cost competitivenessCost competitiveness Employee empowermentEmployee empowerment

STRATEGIESSTRATEGIES

Cost efficiencyCost efficiency Customer retentionCustomer retention Business redefinitionBusiness redefinition   Innovation strategiesInnovation strategies Financial strategyFinancial strategy

ORGANISATIONALORGANISATIONAL

STRUCTURESTRUCTURE

POLICIES AND PROCEDURES FOLLOWEDPOLICIES AND PROCEDURES FOLLOWED HR POLICIES OF CEMENT BUSINESSHR POLICIES OF CEMENT BUSINESS

– DesignationsDesignations– Perks chartPerks chart– AllowancesAllowances– PerquisitesPerquisites– ReimbursementsReimbursements– TravelTravel– Other policiesOther policies– RetrialRetrial

GROUP POLICIESGROUP POLICIES– car policy for domestic unitscar policy for domestic units– Accident and medical insurance coverageAccident and medical insurance coverage– GratuityGratuity

GENERAL POLICIESGENERAL POLICIES– Sexual harassmentSexual harassment– Internal recruitment schemeInternal recruitment scheme– Re employment of ex employeeRe employment of ex employee– Retirement age of management cadreRetirement age of management cadre– Employment of near relationEmployment of near relation– Dealing in shares of group companiesDealing in shares of group companies

CODE OF CONDUCTCODE OF CONDUCT

Various DepartmentsVarious Departments

Finance DepartmentFinance Department Marketing DepartmentMarketing Department Human Resource DepartmentHuman Resource Department Research & Development Research & Development

DepartmentDepartment Supply Chain DepartmentSupply Chain Department

SWOT analysis of the organisationSWOT analysis of the organisationSTRENGTHS: STRENGTHS: Double digit growth rateDouble digit growth rate     Cement demand has grown in tandem with strong Cement demand has grown in tandem with strong

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

dam and irrigation projectsdam and irrigation projects -National Highway Development Program-National Highway Development Program -Bharat Nirman Yojana for rural infrastructure -Bharat Nirman Yojana for rural infrastructure -Rise in industrial projects-Rise in industrial projects -Export potential also demand driver-Export potential also demand driver Capacity utilization over 90%Capacity utilization over 90%

WEAKNESS: WEAKNESS: Low value commodityLow value commodity Cement Industry is highly fragmentedCement Industry is highly fragmented Industry is also highly regionalizedIndustry is also highly regionalized Low – value commodity makes transportation over long Low – value commodity makes transportation over long

distances un-economicaldistances un-economical

OPPORTUNITIES:OPPORTUNITIES: Demand–supply gap Demand–supply gap Substantially lower per capita cement consumption as Substantially lower per capita cement consumption as

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

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

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

THREATS:THREATS: Rising input costs Rising input costs Government intervention to adjust cement prices Government intervention to adjust cement prices Possibility of over bunching of capacities in the long term as Possibility of over bunching of capacities in the long term as

some of the players have already announced new some of the players have already announced new capacities capacities

Transportation cost is scaling high; bottleneck due to Transportation cost is scaling high; bottleneck due to loading restrictionsloading restrictions

Coal prices climbing up; industry players say current Coal prices climbing up; industry players say current shortage of coal in the country is estimated to be over 10 shortage of coal in the country is estimated to be over 10 million tonesmillion tones..

Product promotional measureProduct promotional measure ADVERTISINGADVERTISING PUBLIC RELATIONPUBLIC RELATION PERSONAL SELLINGPERSONAL SELLING SALES PROMOTIONSSALES PROMOTIONS DIRECT MARKETINGDIRECT MARKETING

MANPOWER PLANNING:MANPOWER PLANNING:

INTERNAL SOURCES INTERNAL SOURCES Present employees Present employees Retired employees Retired employees Dependent of present Dependent of present Employee Referrals Employee Referrals Trade UnionsTrade Unions Walk-insWalk-ins Head HuntingHead Hunting Mergers & AcquisitionsMergers & Acquisitions E-RecruitmentE-Recruitment

EXTERNAL SOURCESEXTERNAL SOURCES Campus RecruitmentCampus Recruitment Private employment Private employment

consultantconsultant Data BanksData Banks Casual ApplicantsCasual Applicants

Future plans for growth of the Future plans for growth of the organization.organization.

Aspire to become the top manufacturers in Aspire to become the top manufacturers in cement and concrete industry.cement and concrete industry.

To become the leaders in the cement To become the leaders in the cement market.market.

Plans to bring in value added programs Plans to bring in value added programs and services for construction industry.and services for construction industry.

PAN India operations.PAN India operations. Continuously to look into and improve the Continuously to look into and improve the

value of stake holders.value of stake holders. -S.V. Patil; Senior Vice-President Marketing(South)-S.V. Patil; Senior Vice-President Marketing(South)

THANK YOUTHANK YOU