UltraTech Cement Limited

UltraTech will leverage synergies and further strengthen the ability to compete in the Indian and the overseas markets. We expect UltraTech to grow faster than the market and to improve market shares. At the same time, developing beachheads overseas through a profitable exports business is a priority for us. Mr. Kumara Mangalam Birla The Indian cement industry is on a roll. Driven by vertical-trajectory infrastructure development, a booming housing sector and surging global demand, the cement industry has increased its production capacity and sparked off a spate of mergers and acquisitions to spur growth. In this phase, the cement segment of the Aditya Birla Group has acquired the L&Ts cement business for around Rs.22,000 million in the year 2004, keeping pace with the expanding demand for cement. After this acquisition, the Aditya Birla Group integrated all its national cement brands into one entity UltraTech Cement (UTCL). Jaan Wahi, Pehchaan Nayi this slogan sums up, what the new brand identity UltraTech Cement is all about, and its ultimate promise; it is a forceful statement that communicates the level of service and the quality it provides to its customers and partners. With UTCL, the Aditya Birla Group has established itself as not only the most respected domestic player but also one among the best global leaders in the cement sector.

Cement Industry in India

Cement industry, one of the core industries, is vital for a countrys development and because of its importance it is highly regulated in India. India is the second largest producer of cement in the world, after China and currently it is increasing its production capacity. Indias cement industry comprises 130 large cement plants and more than 300 mini cement plants, these plants follow standardized process of cement production from raw material to marketing. At the end of FY 2008, total production capacity of the industry stood at 190 million tons (mt). But in India, per capita production of cement is very low compared to global average. Indias per capita production of 115 kilograms (kg) per year lags the world average of over 250 kg and Chinas per capita production of more than 450 kg. The per capita consumption of cement in India is 136 kg as against the global average of 356 kg. As mentioned earlier, Indian cement industry is enjoying a series of successes; this is on account of the GDP growth. A booming housing and real estate sector, global demand, and the increasing activity in infrastructure development such as state and national highways drive the demand for cement. To meet the rising demand of cement, the focus of the industry is increasing its cement capacity production. Also, top cement companies of the world are evincing interest to enter the Indian market, sparking off a spate of mergers and acquisitions. However, cement industry is affected by power shortage and rising input costs. Though cement industry is on a roll, experts state that Indian cement industry is going through a consolidation phase. Some examples of consolidation in the Indian cement industry are: Gujarat Ambuja taking a stake of 14 percent in ACC, besides taking over DLF Cements and Modi Cement; ACC taking over IDCOL; India Cement taking over Raasi Cement and Sri Vishnu

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Cement; and Grasim acquiring L&Ts cement business, Indian Rayons cement division, and Sri Digvijay Cements. Foreign cement companies are also picking up stakes in large Indian cement companies. Swiss cement major Holcim picked up 14.8 percent of the promoters stake in Gujarat Ambuja Cements Limited (GACL). Holcims acquisition has led to the emergence of two major groups in the Indian cement industry: the Holcim-ACC-Gujarat Ambuja Cements combine and the Aditya Birla group through Grasim Industries and UltraTech Cement. Lafarge, the French cement major acquired the cement plants of Raymond and Tisco, and L&Ts Ready Mix Concrete (RMC) business. Italy based Italcementi acquired a stake in the K.K. Birla promoted Zuari Industries cement plant in Andhra Pradesh, and German cement company Heidelberg Cement entered into an equal joint venture agreement with S P Lohia Group controlled Indo-Rama Cement. The above process of mergers and acquisitions facilitated Indian cement industry to acquire technical capability to produce different types of cement like Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland Cement, and White Cement etc.

Nature of the Industry

Cyclical Cement industry is cyclical in nature. It is highly sensitive to business cycles as well as broader economic trends. There is a high degree of correlation between the GDP growth rate and the growth in cement consumption. When the economy is in boom, the demand of cement increases due to the development activity in the infrastructure sector, boom in real estate, and corporate expansion. However, when the economy is in recession, cement industry too faces recession. Regulated Industry Cement industry, being a core industry of the country, is vital for the latters development. In India, the cement industry is highly regulated and cement price is under government control. To keep cement prices under control the government may take certain measures, which could be a worrying factor for the industry, especially at a time when raw material prices and freight costs are shooting through the roof. Recently, there was a steep rise in the cement price; cement price has always been a bone of contention between the government and the cement producer. Currently, the government is exerting pressure on the industry to decrease cement price. Standardized Technology In the wake of cement industrys ability to acquire technical capability, cement production is a standardized and simple process. Technology is not an entry barrier in the cement industry. Industry does not offer any technological advantage to specific players. It is characterized by a mature and stable technology with simple, minor improvements taking place over the years. Any change in the technology can be easily diffused in the industry. Conglomerations The domestic cement industry is characterized by the presence of various diversified companies, which have significant stake in the cement sector. Some of the prominent diversified players operating in this sector are Grasim Industries, Jaiprakash Industries and Century Textiles. Diversified conglomerates like the Birla Group and the Singhanias (Raymond, JK Synthetics) have significant interests in the cement business. Industry Value Chain Mining 118 Manufacturing Testing Marketing Distribution

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The most important raw materials for making cement are limestone, clay and mart. These are extracted from quarries using heavy machinery. The extracted raw materials are transported to the crushing installation and then the crushed material is transported for raw material storage. It is stored in blending beds and homogenized. The desired raw mix of crushed raw material and the additional component required for the type of cement is done. Roller grinding mills and ball mills will then grind the mixture to a fine powder at the same time as drying it. Manufacturing Burning is the most important step in the manufacturing process, which takes place in huge rotary kilns. At the end of kiln, the raw material is fed either directly or using a pre heater system. Before reaching a temperature of about 14500 C, the raw material is slowly cascaded down the inclined kiln towards the heat. In this burning zone, a process called clinkering takes place. The clinker nodules now drop into coolers. Conveyors then take these nodules away to the clinker storage silos. Electrostatic precipitators clear the kiln to prevent the gas leaving it, to discharge into the atmosphere. Cement mills use steel balls of various sizes and a small quantity of gypsum to grind the clinker. A fine powder called cement is then formed. Gypsum is used to control setting times of cement. The finished cement is then stored in silos. In order to ensure consistence, further blending takes place at the silos where the cement is stored. Testing Testing is undertaken right from the supply of raw material till the final product is dispatched. Every company sets the standard for the quality of the product as also the raw material. Hence, companies follow this standard and they check the quality using testing. Marketing Industry sources point out that cement business in India is mostly retail business. Companies conduct market research at the time they enter the market and analyze the quality of cement produced by their competitors. After market research, companies develop and refine the product that meets customer needs. Packaging and pricing represents a very concrete way to communicate with the target market and express the positioning of business. Companies also ensure the right kind of distribution method that suits the company and the customer. Companies also promote the product through advertisements. Figure 1: Market Structure

Source: Myiris.com 119

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As experts point out, the market structure of the Indian cement industry is fragmented with no firm having a significant market share. The industry comprises small and medium sized companies. The top 5 players in the Indian cement industry make up for more than half of the installed capacity of around 190 million tons while small players hold the balance portion in the industry. Market share of top five players in the industry has increased from 42% in FY 02 to 56% in FY 07. In FY 07, Holcim group maintained its leadership position with a market share of 22.6% followed by Aditya Vikram Birla group at 19.4%. The extent of concentration in the industry has increased over the years. The reason for this being the focus of the larger and more efficient units to consolidate their operations by restructuring their businesses and by taking over relatively weaker units. The relatively smaller and weaker units are finding it difficult to withstand the cyclical pressure of the cement industry.

Industry Performance
The current growth lead in Indian cement industry has been happening over the past seven years. The reason is the boom in real estate and the housing sector, infrastructure projects, and industrial expansion. Among these, real estate sector is the key driver and accounted for almost 55% in FY 08. The growth in the domestic demand for cement surpassed the economic growth rate of the country; also, the growth rate of cement demand over the last five years at a CAGR 8.37% was higher than the growth rate of supply at a CAGR 4.84%. Figure 2: Growth in Demand and Production

Source: Hindu Business Line. Cement production increased from 155.66 million tons in 2006-07 to 168.29 million tons in 2007-08 with an 8.11 percent growth rate. In March 2008, the industry produced 16.37 million tons of cement, the highest production compared with the production in the remaining months of Financial Year 2007-08. Simultaneously, the overall dispatches of the industry grew by 7.98 percent during 2007-08 to 167.65 million tons compared to 155.26 million tons in 2006-07. Cement dispatches have increased by 6.05 percent to 14.72 million tons in April 2008 against 13.88 million tons in April 2007. Cement is a bulky commodity and cannot be transported with ease over long distance. This is the reason it makes it to a regional market place, and the nation being divided into five regions. Each region is characterized by its own demand supply dynamics. Region-wise, the growth of consumption as of March 2008 was about 10 percent over the previous year in the North and South, 15 percent in the West, 5 percent in the centre and 2 percent in the East. These contribute to a 9 percent growth across India. 120

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Source: Hindu Business Line. Analysts say that the growing demand for cement has led to an increase in its production capacity. The total production capacity of the Indian cement industry has increased to 190 mt at the end of 2007-08, as against 167 mt at the end of 2006-07, recording a growth rate of 13-14 percent. Further, with a capacity addition of 0.45 mt by Vasavadatta Cement in April 2008, the installed capacity of the cement industry has increased to 196.22 mt as on April 30, 2008. Currently, Indian cement industry is operating at 100% capacity utilization. The reason is capacity addition in the industry is at a slower rate compared to demand growth and is leading to maximum capacity utilization.

Growth Initiatives
Infrastructure and Housing Boom Currently, Indian economy is growing at nearly 9 percent. To maintain this growth rate in future, government spending on infrastructure facilities are expected to increase. In India, real estate and housing sector are in a boom phase. Government initiatives in the infrastructure sector, coupled with the housing sector boom and urban development, will continue to be the main drivers of growth for the Indian cement industry. Increased infrastructure spending has been a key focus area over the last five years indicating good times ahead for cement manufacturers. As per estimates, an investment of US$25 billion is required for urban housing, and an investment of US$450 billion is required for infrastructure-related projects. Industrial expansion projects would witness investments worth US$88 billion over the next five years. Furthermore, Finance Minister, P. Chidambaram, has stated that India would double the amount to be spent on infrastructure over the next five years to sustain its record economic growth and modernize its infrastructure. The government has increased budgetary allocation for roads development under National Highway Development Project (NHDP) to USD 3.23 billion; this allocation will keep up the demand for cement. The continuous increase in the number of infrastructure projects along with a rise in construction activity has ensured rising demand levels for the cement industry. Hence, the demand for domestic cement is expected to grow at a CAGR of approximately 10% for the next 5 years. 121

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Cement companies are adding more plants to provide for a rapidly expanding economy. Cement industry is therefore expected to add 111 million ton (mt) of annual capacity by the end of 2009-10 (FY 10), riding on the back of approximately 141 outstanding cement projects. As per ICRA Industry Monitor, the installed capacity is expected to increase to 186 mt per annum (mtpa) by FY 08-end, and 219 mtpa by end of FY 09, and up to 241 mtpa by FY 10-end. Commercial Structure and Corporate Projects Currently, various sectors like textile, chemical, plastic and mineral are operating at 100% capacity. Therefore, large investment in capacity expansion across these sectors is likely to boost the demand for cement as also the huge demand for multiplex and malls envisaged by real estate companies. Hence experts feel that the demand for cement is here to stay. Captive Power Plants Rising cost of power and interruptions is a big concern to the industry as this affects the bottom line of the companies. The power requirements of the cement industry average around 110-120 kilowatt hours of power per ton of cement produced. The average energy cost of the industry has increased from Rs.528 a ton in Financial Year (FY) 2000 to Rs.581 a ton in FY 2007. The industry now focuses on captive power generation to reduce power costs and to ensure continuous power supply. Captive power generation tends to be more cost effective as compared to power from the grid. According to an estimate, power from the grid usually averages Rs.3/unit, and that generated from DG sets cost Rs.5/unit, while power generated using coal-fired steam turbines costs Rs.1.5-2/unit. At the end of FY07, nearly 53% of the total cement production was powered through captive sources. Logistic Cost Logistic cost is also an important cost element. Cement, which is low value bulk product, logistics is a big cost component both by way of transforming the raw material to the plant and cement to its market. Freight and distribution expenses as a percent of cost of sales for the cement companies have increased from 18.4 percent in 2002 to 24 percent in 2007. In FY 2008 freight costs are soaring with higher petroleum and diesel prices. The 2008 Railway Budgets 14 percent reduction in freight charges for fly ash, waiver of busy season surcharge on bulk goods and addition of new lines to serve cement clusters in different regions, could bring some relief to cement companies on this front in the coming quarters. Also, cement movement by rail has increased over the years.

Issues and Concerns

Rising Input Costs An increase in the cost of coal, power tariff, royalty on limestone and freight costs have resulted in cost pressure. Domestic coal prices surged following a 10 percent hike in the prices of all grades of coal by Coal India Limited in December 2007. The sharp surge in coal prices (due to continued demand in the Asian region), and the significant rise in international oil prices, prompted a move towards coal-based power generation. Cement plants accounted for around 4.2 percent of Indias coal demand. A further spike in energy cost, the profit margin of the market player erodes further. Oversupply Though cement industry is adding capacity experts feel that this scenario poses a problem of oversupply in the cement industry. Cement producers are expected to increase 88 million tons capacity of cement production at the end of FY 10. Thus, the cement producers have more cement to supply than its demand. 122

UTCL Table 1: Cement Demand and Supply Million tons Year Ending March 2007 March 2008 March 2009 March 2010 Total Production 154.8 186 219 241 Total Demand 148.4 163.25 179.57 197.53 Excess 6.4 1.85 18.03 44.87

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Source: www.Hindu business line.com Rising Interest Rate Also the rise in interest rates on housing loans creates a fear that high interest rates would affect the housing and real estate boom. Future Scenario Industry players expect the demand for cement to continue and to remain robust; they also expect it to sustain the 9-10% per annum growth over the next few years in the wake of huge infrastructure and housing development requirements across the country. However, the 80-90 mtpa fresh capacity additions over the next couple of years will lead to softening of cement prices in the country. Further, any increase in cement prices in the near term would primarily be aimed at offsetting additional cost pressures.

Company Information
Aditya Birla Group acquired UltraTech Cement (UTCL) in July 2004 from L&T Ltd. it was formally known as L&T Cement. After the acquisition, Birla Group changed the name from L&T Cement to UltraTech Cement Limited. UltraTech brand falls in the premium segment of the cement market. UltraTech produces both cement and concrete. Company sources proudly announce that UltraTech Cement is known for its impeccable quality. The company has the capacity to produce 17 million tons of cement annually. It has five integrated plants, five grinding units and three terminals, one of which is located in Sri Lanka. The subsidiaries of UltraTech cement are: Dakshin Cement Limited and UltraTech Ceylinco (private) Limited. Table 2: Production Capacities of UltraTech Cement Plant/ Unit A. Composite Integrated Plants Andhra Pradesh Cement Works Awarpur Cement Works Gujarat Cement Works Hirmi Cement Works Narmada Cement-Jafrabad Works 8000 9500 15000 8050 4350 2.3 3.3 5.3 1.6 0.4 123 Kiln Capacity (tpd) Capacity (million tpa)

UTCL Plant/ Unit B. Grinding Units Arakkonam Cement Works Jharsuguda Cement Works Narmada Cement- RatanGiri Works Narmada Cement- Magdala Works West Bengal Cement Works Total Source: www.ultratechcement.com 1.2 0.8 0.4 0.7 1 17 Kiln Capacity (tpd) Capacity (million tpa)

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UltraTech Products
UTCL manufactures and markets Portland cement, Portland blast furnace slag cement, and Portland Pozzolana cement; it also manufactures Ready Mix concrete. Ordinary Portland Cement 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. Portland Blast Furnace Slag Cement Portland blast-furnace slag cement contains up to 70 percent of finely ground, granulated blast-furnace slag, a non-metallic product consisting essentially silicates and alumino-silicates of calcium. Slag brings with it the advantage of the energy invested in the slag making. Grinding slag for cement replacement takes only 25 percent of the energy needed to manufacture Portland cement. Using slag cement to replace a portion of Portland cement in a concrete mixture is a useful method to make concrete better and more consistent. Portland blast-furnace slag cement has a lighter color, better concrete workability, easier finish ability, higher compressive and flexural strength, lower permeability, improved resistance to aggressive chemicals and more consistent plastic and hardened consistency. Portland Pozzolana Cement Portland Pozzolana cement is ordinary Portland cement blended with pozzolanic materials (power-station fly ash, burnt clays, ash from burnt plant material or silicious earths), either together or separately. Portland clinker is ground with gypsum and pozzolanic materials which, though they do not have cementing properties in themselves, combine chemically with Portland cement in the presence of water to form extra strong cementing material which resists wet cracking, thermal cracking and has a high degree of cohesion and workability in concrete and mortar. UltraTech Concrete UltraTech Concrete is a part of UTCL. Ready Mix Concrete business has a substantial growth in coming years. For capturing this growth, the company has commenced setting up RMC plants at various places in the country. Currently, UltraTech Concrete plants are present in 17 cities Mumbai, Pune, Nasik, Nagpur, Ahmadabad, Surat, Gurgaon, Noida, Jaipur, Chandigarh, Chennai, Bangalore, Hyderabad, Cochin, Vizag, Ludhiana, and Kolkata. 124

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Basic Revenue Model

UTCL distribution network is pan India spread across India. It has 14000 dealers and 60000 retailers. It distributes cements to retail customers through this network. It also manufactures and distributes Ready Mix Concrete. Currently, UltraTech directly distributes concrete to builders and construction companies from its RMC plants located in 17cities. UTCL is also the countrys largest exporter of cement and clinker. The company exports over 2.5 million tons per annum, which is about 30 percent of the countrys total exports. The export markets span countries around the Indian Ocean, Africa, Europe and the Middle East. Business Strategy UltraTech is the second largest cement producer in India with a market share of 10%. In the fourth quarter of Financial Year 2007-08, it reported a net sales growth of 9.3% YoY to Rs.16,020 millions. This growth was lead by about 9% YoY improvement in blended realisation per ton of Rs.3,325 (Rs.3,050) as the company benefited from the run-up witnessed in cement prices in the South. Ready Mix Concrete Plants The ready mix concrete sales account 5% of the companys total sales. In future, the demand of the ready mix concrete will increase and its growth rate is likely to be substantial. Therefore, it has established ready mix concrete plants at various places in the country to capture the demand of ready mix concrete and is likely to add a few more. Expanding Capacities In India, the demand for cement is expected to rise in near future because of increased government spends on infrastructure projects, and due to housing and real estate boom. To capture this demand, the company plans to expand its capacity from 17 million tons to 25 million tons by increasing its production capacity by 8 million tons. Power Cost Cement industry is an energy intensive industry. The availability of quality power on a regular basis at an economic rate is a big challenge. So, the company is to establish captive power plants to mitigate rising energy costs. The company is to set up captive power plants at its Andhra Pradesh, Chhattisgarh and Gujarat units. These plants would meet 80 percent of the companys power requirement. Captive power plants reduce dependence on the State Power Grid. Capturing South Indian Market In the southern region, demand for cement is expected to be high in coming years. The demand is driven by government projects like IT Parks, Special Economic Zones and infrastructure projects. UltraTech is augmenting capacities by an additional 4.9 million tons per annum at its unit in Andhra Pradesh, to cater to the growing demand in the South Indian market. Building Solutions Retails Stores To retain its customer base, to be accessible to its customers, and to extend customer support the company proposes to establish 200 Building Solutions Retail Stores (UTBS) across India before the end of this calendar year. The concept is based on plan, build and support philosophy. Using this service, the customer can get a list of construction products like wood, paints, fittings, sands, bricks etc. all at one place. UTBS would also offer a complete support through tests at the construction site to ensure quality standards. 125

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Capital Expenditure Plan

UltraTech Cement has allocated over Rs.26,000 millions for its various Capex plans. Of this, around Rs. 11,000 millions will be spent in setting up captive power plants at their Units in Andhra Pradesh, Chhattisgarh and Gujarat. The Power Plant in Andhra Pradesh will be commissioned in the last quarter of FY 08 and the one at Chhattisgarh in the first quarter of FY 09. The power plant in Gujarat will be commissioned in a phased manner commencing from the last quarter of FY 08 and ending in the second quarter of FY 09. The capacity of Companys Unit at Andhra Pradesh is being increased by 4 mtpa with a grinding Unit in Karnataka at an expenditure of around Rs.11,000 millions. It was commissioned in March 2008, and this will help the outfit to meet the growing demand in South India. Ready Mix Concrete is likely to see substantial growth in the years to come. Recognising the opportunities that this business will offer, company has commenced setting up Ready Mix Concrete Plants at various places in the country. Future Scenario Currently, in India, cement industry is adding capacity to meet the growing demand of cement. UltraTech is a market leader in establishing capacity addition and company has planned to increase its capacity 8 million tons from 17 million tons to 25 million tons. Company sources confirm that problem of power shortage and rising input cost is a bigger threat. For this, it chalked out an action plan to meet future contingencies. For power shortage, company is planning to establish captive power plants. Captive power plants reduce dependence on state grid. Rising Input costs affect the industrys profit margin. But UltraTech cement has fared better as compared to others in the industry because of its concentration in the Western and Southern markets; this move has led to stronger growth in its demand and gave higher returns. The capacity of UltraTechs Unit in Andhra Pradesh is being augmented by 4 mtpa with a grinding Unit in Karnataka at an expenditure of around Rs.11,000 millions. This was commissioned in March 2008. This augmentation will also help the company to cater to the growing demand in South India. UltraTech exports its cement to Middle East countries. Currently, Middle East countries are in the midst of an infrastructure boom. UltraTech cement is utilizing this opportunity because the company has a customer base in these countries. This also boosts the demand for its cement. The companys future prospects are characterized to industry future and UTCL claims that the company is better placed in industry compared to other peer groups.

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ANNEXURE I
Sales Volumes of the company is expected to be 17.95, 19.75 and 21.32 million metric tonnes in the next three years. In next three years, Sales Realization will be Rs.3,057.11, Rs.3,301.68 and Rs.3,433.75 per Rs. metric ton. PBT as a percentage of sales for the next three years is expected to be at 20.67, 16.06 and 14.69 percent. Depreciation for the next three years will be Rs.2,409.4 millions, Rs.3,703.7 millions and Rs.4,016.9 million. Fixed Assets and Capital WIP in the next three years is expected to be: Rs. in Million FY 07 Gross Assets Capital WIP 47,847 6,969.5 FY 08 63,977 11,939.5 FY 09 69,997 15,529.5 FY 10 77,477 13,339.5

Long-term debt of the company in the next three years will be Rs.22,781.0 millions, Rs.30,323.7 millions and Rs.32,838.9 millions. Working Capital Turnover Ratio is FY 07 Net Working Capital Turnover Ratio 42.55 FY 08 21.05 FY 09 22.09 FY 10 26.81

Interest cost is expected to be 9% on long-term liabilities in the next three years. Terminal growth rate is 5%. Tax rate is 33%. No. of Outstanding Share is Rs.124.4 millions. 10 year government bond yield is 7.55%. Market risk premium is 8.54%.

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ANNEXURE II Profit & Loss A/c

(Rs. in Million) Particular Net Sales % Growth Increase/(Decrease) in stock Total Revenue % Growth Expenditure Raw material % of net sales Manufacturing % of net sales Purchase of Finished product Payment to and provision for employee(staff Cost) % of net sales Selling and Distribution, Adm. and other exp. % of net sales Total Expenditure % of net sales EBITDA Depreciation Deferred Revenue Expenses Charged of EBIT Financial Charge Other Income PBT Tax Effective Tax Rate Adjusted PAT Adjusted PAT Growth % Dividend PAT after Dividend Share in issue Source: Ultratech Annual Report. 70.2 318.1 124.4 1046.2 1150.1 595.9 492.0 103.7 210.8 388.3 1637.8 72.8 9211.4 409.2 1050.8 666.7 29.6 6683.3 296.9 19,250.0 855.1 3191.4 2145.2 2653.4 101.8 10,608.3 406.9 1939.3 729.6 28.0 6839.2 262.3 22,769.8 873.4 3508.3 2217.8 768.4 522.1 1068.8 210.7 336.0 364.5 1084.8 28.5 926.6 106.6 78.1 124.4 3382.3 896.4 370.0 2855.9 558.3 195.5 2297.6 79,617.5 248.5 2049.1 124.4 11,915.6 868.3 614.6 11,661.9 3839.1 329.2 7822.8 2404.8 567.7 7255.1 124.4 2841.1 86.1 12,032.9 364.7 2653.2 922.6 28.0 9393.3 284.7 27,843.1 843.9 5542.6 2160.3 3929.9 80.0 15,185.8 309.2 1824.3 1172.2 23.9 12,492.6 254.4 34,604.8 704.7 14,178.1 2262.5 69.9 22,441.4 FY 04 22,511.3 FY 05 26,069.0 158.0 209.1 26,278.1 171.0 FY 06 32,994.5 265.7 391.2 33,385.7 270.5 FY 07 49,108.3 488.4 325.4 48,782.9 461.2

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ANNEXURE III Balance Sheet

(Rs. in Million) Particular Gross Asset Accumulated Depreciation Net Fixed Asset Capital WIP Total Fixed Asset Investment Current Asset Cash Inventory Trade Debtors Loans And Advances Total Current Asset Current Liabilities Provision Total Current Liabilities Net Current Asset Net Current Asset excluding cash Miscellaneous Expenditure Capital Deployed Total Asset Non-Current Liabilities Secured Debt Unsecured Debt Total Liabilities Deferred Tax Liabilities Share Capital Share Capital Suspense Reserve Total Shareholder Equity Capital Employed Total Liabilities Source: Ultratech Annual Report. 12450.1 3906.3 16356.4 6497.1 124.4 05.1 9505.4 10754.5 33608.0 37451.5 9427.3 10671.3 31802.2 36195.2 12533.5 2780.3 15313.8 5817.1 124.4 12219.3 229.9 14518.3 5769.6 124.4 00.9 9137.8 10382.7 30670.6 36231.1 16392.9 17637.8 39026.7 46578.5 11512.5 4273.8 15786.3 5602.6 1244.9 418.3 2231.8 1775.7 2970.1 7395.9 3644.3 199.2 3843.5 3552.4 3134.1 155.2 33608.1 37451.6 31802.2 36195.2 30670.8 36231.3 39026.7 46578.5 562.6 2837.1 1719.5 3257.3 8376.5 4154.3 238.7 439.3 3983.5 3420.9 61.6 3795.9 1725.5 158.8 7725.4 5168.7 391.8 5560.5 2164.9 1548.9 895.9 4335.8 183.5 253.5 9601.7 7367.1 184.7 7551.8 2049.9 115.4 FY 04 42758.4 15479.4 2727.9 240.6 27519.6 2380.9 FY 05 43042.9 17553.9 2548.9 481.8 25970.8 1847.9 FY 06 46053.8 20682.1 25371.7 1410.3 2678.2 1723.9 FY 07 4784.7 22674.2 25172.8 6969.5 32142.3 4834.5

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ANNEXURE IV Cash Flow Statement

(Rs. in Million) Particular Cash Flow from Operating Activities PBT Depreciation Interest Paid Interest Received Other Deferred Tax Liability Operating Profit before Working Capital Change Change in Current Asset Change in Current Liabilities Change in Working Capital Cash Generated From Operation Direct Tax Paid Net Cash Generated from Operation Cash Flow from Investing Activities CAPEX Investments Interest Received Net Cash Used in Investing Activities Cash Flow from Financing Activities Change in Debt Change in Equity Dividend Paid Interest Paid Net Cash Used in Financing Activities Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents at the Beginning Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents at the End Source: Ultratech Annual Report. 635.2 949.4 418.1 00.3 418.1 418.4 538.1 223.9 1201.2 05.1 62.2 1081.6 2350.1 144.3 418.4 144.3 562.7 93.3 923.2 1896.9 53.4 562.7 53.4 616.1 715.8 884.1 288.0 280.0 616.1 280.0 896.1 880.4 1311.9 47.8 1299.2 147.3 1629.9 688.5 220.3 37.0 871.8 2141.9 1479.2 68.4 3552.7 7652.7 3107.4 297.6 10462.5 3361.4 595.5 437.8 157.7 3203.7 206.3 2997.4 4066.6 869.7 527.2 342.5 3724.1 357.9 3366.2 5725.3 441.9 782.1 -340.2 6065.5 562.5 5503.0 14,540.7 1460.1 2222.7 762.6 15,303.3 4272.8 11,030.5 492.0 2145.2 1150.1 175.4 250.5 432.4 2217.8 1068.8 36.0 383.6 2855.9 2160.3 896.4 ..99 117.4 11,661.9 2262.5 868.3 298.2 46.2 FY 04 FY 05 FY 6 FY 07

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ANNEXURE V
Date Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Source: www.bse india.com Share Price of UltraTech Cement 343.75 372.25 354.55 333.4 324.9 352.45 380.75 439.05 466.3 398.15 450 427.15 518.55 560.5 684.45 859.65 605.45 749.95 722.1 769 891.15 880.5 898.75 1,096.90 993.7 891.1 770.45 820.3 827 900.05 932.15 920.5 1,042.55 999.15 987.4 1,014.50 Sensex 2,726.49 2,825.65 2,734.66 2,610.50 2,829.20 2,928.31 3,124.78 3,273.00 3,521.83 3,198.69 3,568.37 3,795.96 4,004.96 4,130.07 4,516.73 4,829.73 4,157.93 4,029.97 4,029.43 4,423.88 4,739.67 4,957.37 5,227.73 5,270.76 5,408.71 4,938.08 4,955.39 5,311.03 5,646.90 5,781.37 6,063.20 5,950.11 6,773.54 7,785.22 7,865.98 8,592.43

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References
1. www.ultratechcement.com 2. www.ibef.org/industry/cement.aspx 3. www.business.mapsofindia.com/cement/ 4. www.economywatch.com/business-and-economy/cement-industry.html 5. www.hindubusinessline.com 6. www.economictimes.com 7. www.equitymaster.com/research-it/sector-info/cement/ 8. www.deadpresident.blogspot.com 9. www.myiris.com 10. ICRA Industry Monitor 11. www.ultratechconcrete.com 12. www.adityabirla.com 13. www.grasim.com/ 14. www.bseindia.com 15. www.moneycontol.com

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