an energy & environment conscious, sustainable & prosperous organization

An Energy & Environment Conscious, Sustainable & Prosperous Organization

Shree Profile

SCL Performance - Financial

Awards and Recognitions

PRESENTATION SEQUENCE

SCL Performance - Environment and Social

SCL Performance - Operational

SCL Performance – Unique Initiatives

Among Top 5 Cement Groups in India.

Largest Cement Player of North India.

Ventured in Power Sale and Trading.

One of Highest Operating Margin.

Turnover in 2009-10 Rs. 3632 crore

Focused on Cement and Power.

SHREE OVERVIEW

An Energy & Environment Conscious Sustainable OrganizationAn Energy & Environment Conscious Sustainable OrganizationAn Energy & Environment Conscious Sustainable OrganizationAn Energy & Environment Conscious Sustainable Organization

BOARD OF DIRECTORS

4

Board of DirectorsBoard of Directors

Shri B.G.Bangur

Shri H.M.Bangur

Shri Y.K.Alagh

Shri R.L.Gaggar

Shri Abid Hussain

Shri O.P.Setia

Shri S.K.Somany

Shri A.Ghosh

Shri M.K.Singhi

Executive Chairman

Managing Director

Ex Cabinet Minister and Economist

Solicitor

Ex Ambassador to US

Ex Managing Director - SBI

Technocrat

Former Deputy Governor - RBI

Executive Director

5

Quality and Energy ConsciousQuality and Energy Conscious

Environment and Employee FriendlyEnvironment and Employee FriendlyEnvironment and Employee FriendlyEnvironment and Employee Friendly

Socially ResponsiveSocially ResponsiveSocially ResponsiveSocially Responsive

Customer ResponsiveCustomer ResponsiveCustomer ResponsiveCustomer Responsive

Investors Rewarding Investors Rewarding Investors Rewarding Investors Rewarding

Sustainable OrganisationSustainable OrganisationSustainable OrganisationSustainable Organisation

SHREE PHILOSOPHY

6

To drive and sustain To drive and sustain industry leadership of industry leadership of the company within a the company within a global context - by global context - by developing individual developing individual leadership leadership competencies at entry competencies at entry level, through a robust level, through a robust backbone of trust, backbone of trust, support innovation support innovation and rewardand reward

To drive and sustain To drive and sustain industry leadership of industry leadership of the company within a the company within a global context - by global context - by developing individual developing individual leadership leadership competencies at entry competencies at entry level, through a robust level, through a robust backbone of trust, backbone of trust, support innovation support innovation and rewardand reward

SHREE – VISION AND VALUES

OUR GUIDING PRINCIPLESOUR GUIDING PRINCIPLESOUR GUIDING PRINCIPLESOUR GUIDING PRINCIPLES

Socially responsible behaviorSocially responsible behaviorSocially responsible behaviorSocially responsible behavior

Accountable to all stakeholdersAccountable to all stakeholdersAccountable to all stakeholdersAccountable to all stakeholders

Good corporate Good corporate governance practicesgovernance practicesGood corporate Good corporate governance practicesgovernance practices

Integrity of conductIntegrity of conductIntegrity of conductIntegrity of conduct

Clarity & UnambiguityClarity & Unambiguity in communicationin communicationClarity & UnambiguityClarity & Unambiguity in communicationin communication

VISIONVISIONVISIONVISION

The AimTo lead Company from good to great.

Changing ScenarioTotal Productivity Management

Total Profit Management

Total Prosperity Management

Shree Cement Profile

An Energy & Environment Conscious, Sustainable & Prosperous Organization

8

Cement Business the bedrock

Location Capacity

Beawar 3.0 mtpa

Ras 3.0 mpta

Khushkhera 3.0 mtpaSuratgarh 1.2 mtpaRoorkee 1.8 mtpaJaipur 1.5 mtpa

TotalTotal 13.5 mpta13.5 mpta

8

SHREE – Cement Overview

Contributing to Bharat Nirman

9

Power Business New Avenue

9

Location Existing Under Implementation Total

Beawar (TP) 42 MW - 42 MW

Ras (TP) 172 MW - 172 MW

Beawar & Ras (GP) 46 MW - 46 MW

Beawar (TP) - 300 MW 300 MW

TotalTotal 260 MW260 MW 300 MW300 MW 560 MW560 MW

TP= Thermal power ; GP = Green Power (WHRB)

Contributing to India’s Energy Security

SHREE – Power Overview

Rapidly Growing Cement Capacity (Million Tonnes)

Shree - Capacity Growth - Cement

Power Capacity (MW) - More than Quadrupled in 4 yearsPower Capacity (MW) - More than Quadrupled in 4 years

Shree - Capacity Growth - Power

12

“Bangur Cement” “Rockstrong Cement”“Shree Ultra Red Oxide”

SHREE BRANDS

SHREE ULTRA RED OXIDE BANGUR CEMENT ROCKSTRONG CEMENT

Leadership position in highly competitive and larger markets of Rajasthan, Delhi & Haryana.

Shree Profile







14

SHREE- FINANCIAL STRENGTH

Consistently increasing Turnover and Operating Profits

15


Steep rise in Market Capitalization over the years

IRR as on 31IRR as on 31stst March March 2010 on investment in 2010 on investment in Shree isShree is 27.26% 27.26% since since

inception (Feb-85)inception (Feb-85)

IRR as on 31IRR as on 31stst March March 2010 on investment in 2010 on investment in Shree isShree is 27.26% 27.26% since since

inception (Feb-85)inception (Feb-85)

9.7

24.1

36.5

48.4

36.8

0

10

20

30

40

50

'05-06 '06-07 '07-08 '08-09 '09-10

Rs.

Cro

res

16

Increasing net worth showing financial strength

Return on net worth (in %)


Cash & Cash equivalents & Investments

19

403

1058

1317

2009

0

500

1000

1500

2000

2500

'31/03/06 '31/03/07 '31/03/08 '31/03/09 '31/03/10

Rs.C

rore

s

1.1

1.91.7

0.9 0.9

0.0

0.5

1.0

1.5

2.0

2.5

3.0

31/03/06 31/03/07 31/03/08 '31/03/09 '31/03/10

No

. o

f tim

es

17

Comfortable debt-equity ratio

Sufficient liquidity in hand

SHREE- Financial Strength Contd..

3632

2109

1368

669

2710

1578

221

611939 993 1004

223474

698 828

0

500

1000

1500

2000

2500

3000

3500

4000

'05-06 '06-07 '07-08 '08-09 '09-10

Rs.

Cro

re

6070

80

100

130

'05-06 '06-07 '07-08 '08-09 '09-10

Per

cent

age

18

Increased Turnover and Profits results in Increased contribution to Exchequer

Increasing Dividend payout over the years

SHREE- Sharing growth with Stakeholders

Power sale – New avenue for Growth

Power sale volume – an increase of 119%

Power sale Revenue – Growth of 122%

Shree Profile







First company in the World to utilize 100% Petcoke in all its operations - Both Cement and Power plants.First company in the World to utilize 100% Petcoke in all its operations - Both Cement and Power plants.

First Cement company in India to produce Synthetic Gypsum to replace use of natural gypsum in cement manufacturing.First Cement company in India to produce Synthetic Gypsum to replace use of natural gypsum in cement manufacturing.

Fastest stabilization of cement kilns after commissioning.Fastest stabilization of cement kilns after commissioning.

First Cement company in India to be given 4 star rating by Whitehopleman UK.First Cement company in India to be given 4 star rating by Whitehopleman UK.

SHREE- Significant Firsts by Shree

22

SHREE- Peer Comparison

Efficient Operations - Lowest Power Consumption amongst Peers

23

SHREE- Peer Comparison

Strong Operational Performance reflected in high EBITDA Margin

SHREE- Information Technology

SHREE – IT driven Company

IT Infrastructure

One of the most secure, scalable and connects all SCL business locations.

One of the most secure, scalable and connects all SCL business locations.

Uptime

Connectivity

Security

Data Loss

Paper Use

Response Time

Adopts latest Technologies & Tools to achieve:

Business Edge

Migrate the enterprise to a virtually paperless working level

Complete transparency through online real-time working

Comprehensive Knowledge Management through knowledge sharing

Transport Freight Bidding System and e-procurement system.

Online communication between all company locations and all the stock points across the country with the use of MPLS VPN.


Successfully implemented Oracle E - business Suite, one of the advanced solution driven ERP systems in the industry.

Shree won the “Silver CIO Award 2008” which is revered as the “OSCAR” of the Indian IT industry for the case study on “Implementation of Reverse Auction of Cement Transportation”.

Launched integrated “RF-ID Smart Card” for governing vehicle movement

First time CCR based Lime Stone Mining using “Shree Dynamine” Operator Independent Truck Dispatch System


Computer Based Tutorials, Pictures &

Videos

Circulars & HR information made

available online

Online IT Helpdesk, with

User self service

Discussion Forums & Interactive Surveys

Online Comments & Feedback

e-Library & Kiosks

Shree Shree ManthanManthan

Online Forums, portal, blogs for Knowledge

sharing

Knowledge Management

Purchasing

Production Management HRMS

Project Management

Process Manufacturing

Finance ( AP, AR, GL, CM )

Sales & Distribution/

Logistics

Enterprise Assets

Management

{Self Service, HR, Payroll,

Time and Labour}

Standard ERP suite has been extensively customized & enhanced to incorporate SCL Business practices.

ERP – Business Suite

Shree Profile







31

Expediting Project Execution for Accelerated Payback

• Airlifted Coal Mill and Raw Mill for Unit VII from Germany Normally these heavyweight items are shipped. Shree opted the Air route thereby reducing project gestation period by 1.5 months

• Construction of Dummy Gear Box Erection of gearbox precedes various activities. Shree created

dummy gearbox at addl. cost to ensure all other activities are over before actual gear box arrived.

• Tower crane for Pre-heater building Hiring of Tower crane by Contractor was taking time. We bought

one tower crane and provided to contractor to ensure faster completion of Pre-heater building.

INITIATIVES RESULTSManufacture of Synthetic

Gypsum – 1st Indian Company to accomplish it

Replace Natural Gypsum Conservation of Natural

Resources

Implementation of Operators’ Independent Truck Dispatch System in Mining Operations

Reduction of Time required for allocation of vehicles

Improved efficiency of vehicles Cost savings.

Successfully applied satellite image modeling and photogrammetry to mine surveying via ISRO – 1st in India to conduct such study in mining.

Huge savings in working time Savings in Manpower

INITIATIVES RESULTS

Unique Initiative of petcoke utilization in Cement and Power Plants for the first time in Indian cement industry – Achieved 100% petcoke utilization in both cement and power plants

Reduced Power & Fuel Cost - one of the lowest in Indian Cement Industry

Captive Thermal Power Plants with spare capacity

Reduced Cost No threat of Power cuts Sale of power by tapping

higher merchant tariff

INITIATIVES RESULTS

Running two cement mills with one roller press

Savings in cost

Common silos for Raw mill by interconnecting silos

Higher production No Mill stoppage even if one

silo full.

Interconnection of Boilers with cement plants

Higher Production Saving in Power Cost

INITIATIVES RESULTS

Installation of Fly ash collection and storage system at Thermal Power Plants at own cost

Assured Supply Menace of disposal of Fly ash

causing great harm to environment and land solved

Multiple Brand Strategy in Cement Marketing

Increasing Market Share

Faster Decision for Rapid Capacity augmentation

Reap the benefit of favourable market

INITIATIVES RESULTS

Waste Heat Recovery Projects – largest capacity in world cement industry excluding China

Power Generation Cost is one of the Lowest in Cement Industry

Environment Friendly Less InvestmentOptimal use of Boiler in Power

Plant with additional Turbine

Inter-connected Power Transmission Line

Uninterrupted power to plants at Beawar & Ras

Facilitated Sale as one unit and Wheeling to Sister units

INITIATIVES RESULTS

Unique Online Competitive Bidding System

More committed and loyal Suppliers and Contractors

Better Management of fleet for transporters

More number of trips by the vehicles and thus much competitive rate for Shree Cement

Round the clock payment to transporters

INITIATIVES RESULTS

Bonus/Incentive for early completion

More committed and loyal suppliers and contractors

Timely / Early commissioning of Projects leading to accelerated payback

Saving in Budgeted Cost

Timely payment

Helping hand when in need through financial, man –power and infrastructure support

Unit VII and Unit VIII commissioned in World Record time against Industry average of 630 days

Unit VII and Unit VIII commissioned in World Record time against Industry average of 630 days

Kiln Commissioning time over the yearsKiln Commissioning time over the years

Shree – Masters in Project Execution

0

100

200

300

400

500

Kiln 3 Kiln 4 Kiln 5 Kiln 6 Kiln 7 Kiln 8

456 435 456 435

367330

Day

s

SCL has developed a highly skilled and experienced power plant execution team that not only commissions plants faster but

stabilization is also much faster

SCL has developed a highly skilled and experienced power plant execution team that not only commissions plants faster but

stabilization is also much faster

Power Plant Commissioning – ahead of benchmarksPower Plant Commissioning – ahead of benchmarks

Shree – Speeding up execution ..cont

E= Expected

SCL project cost is the lowest in industrySCL project cost is the lowest in industry

One of the lowest project costOne of the lowest project cost

Shree – Economies in execution

Innovative work practices applied in project executionInnovative work practices applied in project execution

Highly skilled and experienced project teamHighly skilled and experienced project team

Lower interest and other pre-operative costLower interest and other pre-operative cost

Support to Vendors & Contractors – Partner in executionSupport to Vendors & Contractors – Partner in execution

“Desire to better the past” instinct in project execution team “Desire to better the past” instinct in project execution team

SHREE- Excellent Project Execution

Shree Profile







MANAGEMENT SYSTEMS

ISO-9001 Quality ManagementISO-9001 Quality Management

ISO-14001 – Environmental Management SystemISO-14001 – Environmental Management System

OHSAS-18001–Occupational Health & SafetyOHSAS-18001–Occupational Health & Safety

SA- 8000 – Social AccountabilitySA- 8000 – Social Accountability

*First Process & Cement manufacturing Industry in World to be awarded an Energy Management System Certification by British Standard Institute UK.

*BS-EN 16001 – Energy Management System*BS-EN 16001 – Energy Management System

SHREE- Management Systems

SHREE- Global Participation

First Indian Cement Company to join Cement Sustainability Initiatives of World Business Council for Sustainable Business Development (WBCSD)First Indian Cement Company to join Cement Sustainability Initiatives of World Business Council for Sustainable Business Development (WBCSD)

• Climate Protection• Fuels and raw materials use• Employee health and safety• Emissions reduction• Local impacts on land and communities• Communications and progress reporting• Concrete recycling

Member of Cement Sector Task force of Asia Pacific Partnership formed by Govt. of India, USA, China,

Japan, Korea, Canada and Australia

Member of Cement Sector Task force of Asia Pacific Partnership formed by Govt. of India, USA, China,

Japan, Korea, Canada and Australia

Global Reporting Initiative for improving sharing of information on Environment and Social issues

Global Reporting Initiative for improving sharing of information on Environment and Social issues

Endorsed the global round table Joint Statement on climate Change to discuss issues for shaping public policy on

climate change.

Endorsed the global round table Joint Statement on climate Change to discuss issues for shaping public policy on

climate change.

Global ParticipationGlobal Participation

Global ParticipationGlobal Participation

Participated in various international meetings and forums for Environment management. A few of these is given below:Participated in various international meetings and forums for Environment management. A few of these is given below:

CO2 Saving (Ton/ Annum)

Installed air dryer and controller in the compressor Unit-III 203

Replaced roller table liner in Coal Mill II with new one 1166

Installed VFD in 6 Dust collectors at Packing Plant 1054

Replaced old motors with energy efficient motors in Kiln I 1004

Optimized Belt Conveyor speed & capacity utilization, in Reclaimer I 385

466

Energy Management

Greening the Environment

Strategies for Climate Security - Judicious Use is Wise UseJudicious Use is Wise Use

SHREE- First in Environment

First Cement company in World to fetch Certified Emission Reductions (CER’s) on its Clean Development Mechanism project “Optimal Utilization of Clinker”.

First Cement company in World to fetch Certified Emission Reductions (CER’s) on its Clean Development Mechanism project “Optimal Utilization of Clinker”.

First Indian cement company to issue Corporate Sustainability Report following the highest level “A+” for reporting triple bottom line performance.

First Indian cement company to issue Corporate Sustainability Report following the highest level “A+” for reporting triple bottom line performance.

Implemented Largest Waste Heat Power Plants capacity of 46 MW in World Cement Industry excluding China. Implemented Largest Waste Heat Power Plants capacity of 46 MW in World Cement Industry excluding China.

51

SHREE – Socially Responsive

Generating Sustainable livelihood

Community focused Healthcare Initiatives

Education initiatives Infrastructure Development

52

• Registration of SHREE RURAL FOUNDATION –

platform to carry out welfare activities.

• Registration of SHREE RURAL FOUNDATION –

platform to carry out welfare activities.

Community Upliftment Efforts

• Aimed at institutionalizing welfare efforts from

“Need based” to “Plan Based”

• Aimed at institutionalizing welfare efforts from

“Need based” to “Plan Based”

• Regular meetings with Panchayat (Local Authority) to

identify developmental needs & ways to implement.

• Regular meetings with Panchayat (Local Authority) to

identify developmental needs & ways to implement.

53

• Contributed Rs. One crore on the occassion of

Rajasthan Foundation Day

• Contributed Rs. One crore on the occassion of

Rajasthan Foundation Day


• Contributed Rs. One Crore for setting up a

Neurosurgical Centre at JLN Hospital, Ajmer

• Contributed Rs. One Crore for setting up a

Neurosurgical Centre at JLN Hospital, Ajmer• Contributed Rs.50 Lacs for reconstruction of

Budha Pushkar (Religious site)

• Contributed Rs.50 Lacs for reconstruction of

Budha Pushkar (Religious site)• Contributed Rs. 25 Lacs for building of

“Institute of Chartered Accountants of India”

at Beawar.

• Contributed Rs. 25 Lacs for building of

“Institute of Chartered Accountants of India”

at Beawar.

54

• Contributed Rs. 21 lacs for Kosi river Flood

victims of Bihar

• Contributed Rs. 21 lacs for Kosi river Flood

victims of Bihar


• Supported relief operations for flood

affected people of Barmer.

• Supported relief operations for flood

affected people of Barmer.

• Development of various Road networks and

other infrastructure for local community

• Development of various Road networks and

other infrastructure for local community

One of India’s top 20 best employers

Shree Family cultureParticipative managementHigh happiness quotientSustained Promotion policyNo. of employees (31st

March, 2010): 3244

55

SHREE – People friendly Company

Shree Profile




Performance - Environment and Social

Performance - Operational

Performance – Unique Initiatives

5757

SHREE – An Award Winner

Best Cost Management Practices - Awarded by ICWAI

Corporate Excellence Award – Awarded by RCCI in all 4 categories.

Energy Conservation Award - First prize for Energy Conservation at its mines by Indian Bureau of Mines

National Safety Award – Awarded by Hon’ble President of India, Smt. Pratibha Patil.

Greentech Environment Excellence Gold Award-2008 –for outstanding achievement in Environment Management practices in cement sector

Golden Peacock Award-2008 – In recognition of Excellence in Combating Climate Change.

SILVER CIO Award - Awarded by CIOL Data quest enterprise connect awards

EDGE Award 2009-Awarded by Network Computing Magazine for "Top IT Implementations in India"

5858

SHREE – An Award Winner all the An Award Winner all the wayway National Safety Award – Awarded by Hon’ble President of India Smt Pratibha Patil

National Awards for Energy Conservation – Awarded by Bureau of Energy Efficiency, Ministry of Power, GOI

“Certificate of Excellence” award by Employers Association of Rajasthan for best practices in CSR and Employer – Employee relations

CII ITC Sustainability Awards 2009 for strong commitment towards Sustainability

Best Quality Excellence Award for 2007-08 and Second Best Quality Excellence Award 2008-09 by National Council for Cement and Building Material (NCCBM).

“Golden Peacock Award 2009” for its contribution towards Climate change initiatives

Issuance of the world’s first process plant certification BS-EN 16001 by BSI.

59

Featured at 9th in top 10 Companies in India by Return on Net worth (%) basis

Ranked at 111th in India’s most valuable private sector Companies in terms of market capitalisation

Featured at 5th position in terms of market capitalization among cement companies in India

SHREE – featuring in BT 500 list

Visit us at: www.shreecementltd.com Contact us at: [email protected]

THANK YOU

an energy & environment conscious, sustainable & prosperous organization

Documents

shree cement overview

shree overview

mw total

red oxide shree brands

power capacity mw

cement business

operating profits slide

reward shree vision