company analysis of ambuja cement

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It is a company analysis of Ambuja Cement. These type of ppts are many times required to be made for 1st year MBA students.

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Page 1: Company analysis of ambuja cement
Page 2: Company analysis of ambuja cement
Page 3: Company analysis of ambuja cement

One of the oldest cement companies

Founders - Narottam Sekhseria, Suresh Neotia, in 1983

Counted among the big 4 of India’s Cement Industry

Third by revenue and capacity

Page 4: Company analysis of ambuja cement

Registered in 1983, started production in in 1986.

Located in Ambujanagar, Junagadh.

ACL, one of the most reputed companies of India.

Production for last year- approx 21mil tonnes.

Holcim took controlling stake in 2006 .

Page 5: Company analysis of ambuja cement

One of the most environment friendly cement companies

Many grades from rating agencies First cement company in India to set up own

exporting port Port has 3 terminals, ACL having own fleet

of ships One of the most profitable and innovative

cement co. in India

Page 6: Company analysis of ambuja cement

Mr. Suresh Neotia – Chairman Emiretus

Mr. Narotam Sekhsaria – Chairman

Mr. Paul Hugentobler - Vice Chairman

Mr Ajay Kapur - CEO

Page 7: Company analysis of ambuja cement

Revenue decreased by 15.6%

2175.162578.45

303.97468.9

Net Profit decreased by 35.17%

1.973.05

EPS decreased by 35.40%

Page 8: Company analysis of ambuja cement
Page 9: Company analysis of ambuja cement
Page 10: Company analysis of ambuja cement

First cement co. in India to trade cement via sea.

Dedicated port at Gujarat with cap of 40000 DWT vessels.

First company to create a brand out of a commodity like cement.

First to introduce a special cell for technical services to consumers, masons

Page 11: Company analysis of ambuja cement

Plans investing Rs 1800 crores to increase capacity, via internal accruals.

Setting up a clinkerisation unit of cap 2.2 mil tonnes in Nagpur.

Holds 27.27 % stake in coal mine in JV with IST Steel and Lafarge India.

Acquired 60% stake in Dirk India for 16.5 crores

Bought controlling stake in Dang cement, Nepal for 19.13 crores. Global footprint

Page 12: Company analysis of ambuja cement

Bought controlling stake in DLF cements. Bought stake, 7.2%, in ACC, its closest

competitor, also controlled by Holcim. Trying to outdo Lafarge in India by

aggressive acquisitions. By total stakes in JVs, acquisitions etc

company valued at Rs 930 crores.

Page 13: Company analysis of ambuja cement

People’s company: Truly, people respected, helping people discover their true potential.

The I Can philosophy: believe in urself, take challenging tasks

Recently established new routes on the same stream.

Has always asked employees to take up new challenges.

Environment with no bounds of excellence and efficiency.

Page 14: Company analysis of ambuja cement

“Industry cannot grow at cost of environment”

Pollution levels lower than 100 mg/NM, a great number to achieve, especially in India. Won awards from TERI, Env Ministry

Stretch program: making employees move out of comfort zone, intensive 2-3 weeks programmes.

Ambuja Manovikas Kendra, School for special children.

Page 15: Company analysis of ambuja cement
Page 16: Company analysis of ambuja cement

The closest competitor to Ambuja Cements is ACC.

Page 17: Company analysis of ambuja cement

India’s 2nd largest cement manufacturer, only behind UltraTech cement.

Only cement company that figures in the list of Consumer SuperBrands of India.

The world’s largest cement maker, Holcim, which has a controlling stake in ACL is also a promoter of ACC.

Unique track record of innovative research, product dvpt.

Page 18: Company analysis of ambuja cement

Net sales revenue - Rs 9439 crores operating margin of 20%. profit after tax - Rs 1325crores A comparison of ACL and ACC

In Rs crore 

ACC AMBUJA CEMENTS

Q1CY12 CY2012E Q1CY12 CY2012E

Net sales 3,015 11,162 2,633 9,679

% change 18.6 10.3 19.0 13.7

Ebitda 618 2,126 745 2,285

% change 14.0 6.0 21.0 16.0

Ebitda (%) 20.5 19.0 28.3 23.6

Adjusted net profit 428 1,278 509 1,412

% change 22.3 -1.6 25.0 11.6

EPS (Rs) 8.1 68.5 2.0 9.1

PE (x)   18.2   17.4

Page 19: Company analysis of ambuja cement
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