M.

H Saboo Siddik College of Engineering

A Report
On

Gujarat Ambuja - Cost Leader in the

Indian Cement Industry

1
 T.E. CIVIL
BATCH C2
(Prn No. : 211128, 211129, 211132, 211134, 211137, 222143, and 222146)

OCTOBER 2023
M.H Saboo Siddik College of Engineering

A Report
On

Gujarat Ambuja - Cost Leader in the

Indian Cement Industry

A report submitted in partial fulfilment of the syllabus requirement in the

subject Professional Communication and Ethics.

OCTOBER 2023

2
CERTIFICATE

This is to certify that the work on the project titled “Gujarat Ambuja - Cost Leader
in the Indian Cement Industry” has been carried out by the following students of
M.H Saboo Siddik College of Engineering , in partial fulfilment of the syllabus
requirement in the subject “Professional Communication and Ethics” in the
academic year 2023-2024 :

1. Satyam Singh
2. Sujal Bhogle
3. Ankit Vishvakarma
4. Shivam Shelke
5. Khalid Ansari
6. Ubai Bubere
7. Huzaifah Shaikh

Project Guide:__________________
(Prof. Firdous Parveen Imran)

Principal:__________________
(Dr. Ganesh Kame)

3
 PREFACE
Now a days in the modern business there is a requirement of high skills and skill is refaced to the
practical as well as theoretical knowledge and to improve skill both are important at high rate in the
business and in M H Saboo Siddik College of Engineering, We get the chance to improve our skill on
the way of study.

We tried maximum as our level to collect information of all departments like Finance, Human
resource, Marketing and Production, after completing this report we can totally understand the field
work which is very important in business as well as in study to improve our skills.

4
 ACKNOWLEDGEMENT

We would like to express our special thanks of gratitude to Prof. Firdous Parveen Imran, Lecturer
in Business Communication and Ethics, for her guidance and continuous encouragement. Her support
and suggestions have been extremely valuable for our efforts.

We are thankful of “MUMBAI UNIVERSITY”because they included one of the different subject
with the other subjects, as per Mumbai University in M.H. Saboo Siddik College of Engineering, the
students have to collect information and understand the process of the departments like Finance
Department, Human resource Department, Production process, Marketing department. So we as
student select the topic “Gujarat Ambuja - Cost Leader in the Indian Cement Industry”.

5
 SUMMARY
This case discusses in detail the manufacturing and logistics activities of Gujarat Ambuja Cement
Limited (GACL), one of India's leading cement manufacturing companies. The case describes how
GACL has become the cost leader in the industry. It outlines the innovative and unconventional ways
used by GACL for productivity improvement, pollution control, better distribution and cost cutting.
The case also gives an overview of the cement business, and highlights the critical success factors.

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 CONTENT
SR.NO. CHAPTER PAGE
NO
Preface IV
Acknowledgment v
Summary VI
1. INTRODUCTION 8-10
I. Award
ii. Net Profit 9
2. BACKGROUND NOTE 11-14
2.1 Establishment 12
2.2 Investments 13-14
2.3 Stock Holders Sells 14
3. THE INDIAN CEMENT INDUSTRY 14-16
3.1 Production 14-15
3.2 Market Shares 15-16
3.3 Plants 16
4. MANUFACTURING 17-38
4.1 Plants Location their Capacities 17
4.2 GACL & Its Subsidiaries 17-19
4.3 Capacity of Cement in India 19-20
4.4 Cement Process ,Fuel Cost , Cost Production 20-24
5. LOGISTICS 24-45
5.1 Order Processing 24-26
5.2 Inventory Manage 26-28
5.3 Packing 28-29
5.4 Transportation 29-31
5.5 Ware House and Distribution 31-32
6. FUTURE OUTLOOK 32
7. REFERNCES 32

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 CHAPTER 1

INTRODUCTION

1.1 Award:
Gujarat Ambuja: Cost Leader in the Indian Cement Industry Introduction
Gujarat Ambuja Cement Ltd (GACL), which had grown tenfold during the late
1990s, was the third largest producer of cement in India in 2004 next only to
Birla Groups (consisting of Grasim Cements and Larsen & Toubro Cements)
and Associated Cement Companies (ACC) &. In 2003, GACL had a capacity
of 12.5 MN tonnes and generated revenue in excess of Rs. 2,500 crores.

Year Field Award

2023 Excellence in Financial Reporting ICAI Award

2022 Women Empowerment FICCI CSR AWARD

2021 (MCH & NCD) CSR Health Impact

Award

2020 Empowering Rural Community - Sank rail ICC Social Impact

Award

2019 3rd Rajasthan CSR Award India Edition Mahatma

Awards

2018 GCSRA Award ICSI CSR Excellence

CSR Partnership Award

2017 ET 2 Good 4 Good CII-ITC Sustainability

Award - Bhatapara,
Chandrapur

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 2015 Bombay Chamber Civic Award Civic award

2012 Sustainability CII-ITC Sustainability

Award - Chandrapur

2010 Bombay Stock Exchange Social & Corporate

Award

2004 Asian Institute of Management Asian CSR Award

1.2 Net profit:

The sensitivity analyses above have been determined based on reasonably possible
changes of the respective assumptions occurring at the end of the reporting period and
may not be representative of the actual change. It is based on a change in the key
assumption while holding all other assumptions constant. When calculating the
sensitivity to the assumption, the method (Projected Unit Credit Method) used to
calculate the liability recognized in the balance sheet has been applied. The methods
and types of assumptions used in preparing the sensitivity analysis did not change
compared with the previous period.The defined benefit obligations shall mature after
year end 31st March, 2019 as follows: (` in crores)

Risk Exposure - Asset Volatility

The plan liabilities are calculated using a discount rate set with reference to bond yields;
if plan assets underperform this yield, this will create a deficit. Most of the plan asset
investments is in fixed income securities with high grades and in government securities.
These are subject to interest rate risk and the fund manages interest rate risk derivatives
to minimize risk to an acceptable level. A portion of the funds are invested in equity
securities and in alternative investments % which have low correlation with equity
securities. The equity securities are expected to earn a return in excess of the discount
rate and contribute to the plan deficit.

(i) Leave obligations

The leave obligations cover the Company’s liability for sick and earned leave. The
amount of the provision of ` 3.00 crores [31st March, 18: ` 2.74 crores] is presented as
current, since the Company does not have an unconditional right to defer settlement
for any of these obligations.
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(ii) Defined contribution plans
The Company also has certain defined contribution plans. Contributions are made to
provident fund in India for employees at the rate of 12% of basic salary as per
regulations. The contributions are made to registered provident fund administered by
the government.

The obligation of the Company is limited to the amount contributed and it has no
further contractual nor any constructive obligation. The expense recognised during the
period towards defined contribution plan is ` 2.81 crores

Disclosure as per Indian Accounting Standard 37 relating to Provisions (` in crores)

Particulars 31st March, 2019 31st March, 2018
Ambuja Cements Ltd
Revenue: ₹ 26646 Cr
Market share: 6.2%
No. of manufacturing units: 5 manufacturing plants, and eight grinding units
Head office location: Mumbai No. of people employed: Approximately 4625

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 CHAPTER 2

BACKGROUND NOTE

2.1. Establishments

• Ambuja Cement established in 1983.

• 1983, the company set up its first plant at Gujarat.
• 2005, Ambuja Cements and another premier Indian cement company, ACC Limited,
became a part of the reputed Holcim group of Switzerland.
• 2007, the company adopted a sustainable rural marketing model to provide technical
assistance in building rural infrastructure and impart training skills to villagers. •
2008, the company adopted a goal of ‘Zero Harm’ working environment.
• 2009, the first Ambuja Knowledge Centre was set up to serve as a knowledge
sharing platform for architects, engineers and construction professionals.
• 2010, the company received an ISO 9001:2008 certification for quality, an ISO
14001:2004 certification for environmental systems and OHSAS 18001:2007 by
BSI.
• 2015, Holcim Limited and Lafarge SA came together in a merger of equals to form
Lafarge Holcim, the new world leader in building materials. The company has
always focused on building a brand rather than just selling a commodity in all over
the world.

Ambuja Cements Ltd. (ACL) is one of the leading cement manufacturing companies
in India and commenced cement production in 1986. Initially called Gujarat Ambuja
Cements Ltd, the Company later became Ambuja Cements Ltd. In 2006, global
cement major Holcim, acquired management control of the Company. Today, Holcim
holds a little over 50% equity in ACL.

ACL has grown manifold over the past decade. Its current cement capacity is 27.25
million tonnes. The Company has 5 integrated cement manufacturing plants and 8
cement grinding units across the country. ACL enjoys a reputation of being one of the
most efficient cement manufacturers in the world. Its environment protection
measures are considered to be on par with the finest in the country. It is also one of
the most profitable and innovative cement companies in India.
2.2. Investments

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Gujarat Ambuja Exports Limited (GAEL), founded in 1991, is an agro-processing
conglomerate specializing in maize products and edible oils. The company operates
manufacturing plants in several Indian states. GAEL provides ingredients to various
industries, including food, pharmaceuticals, and animal nutrition. Its product range
includes solvent extraction, edible oil refining, cotton yarn spinning, maize-based
starch and derivatives, wheat processing, cattle feed, and power generation through
windmills, biogas, thermal power, and solar plants.

Over the years, GAEL has expanded its operations, invested in windmill and biogas
power generation, and modernized equipment. It also received ISO 9000 certification
for its solvent extraction plants. The company has invested in windmill projects,
biogas-based power generation, and expansion of various manufacturing units.
Additionally, it has developed high-value derivatives and improved its solvent
extraction and refining projects.

GAEL has made substantial investments in ongoing projects, expanded its maize
processing capacity, and executed derivative product manufacturing facilities. The
company's continuous growth and modernization efforts have allowed it to become a
prominent player in the agro-processing industry in India.

During the year 2021-22 the Company invested about Rs 36.42 Crores in the ongoing
projects mainly into routine capital expenditures in modifications/debottlenecking of
existing plants for its maize processing units at all locations and agro processing
segments. Apart from routine capital expenditures it further invested Rs. 240.83
Crores in the new projects including Rs. 133.69 Crores towards green field project of
1000 TPD at Malta in West Bengal.During the FY 2022-23 the Company has invested
about Rs 49.30 crores mainly in modifications of existing projects.

This investment was for its maize processing units at all locations and agro processing
segments. Apart from routine capital expenditures on the ongoing projects the Company
invested Rs 194.12 crores in the new projects including Rs 119.43 crores towards green
field project of 1200 TPD at Malda in West Bengal.The Company had acquired 100%
equity shares of Mohit Agro Commodities Processing Private Limited thereby making
it as wholly owned subsidiary of the Company in 2023. During the FY 2022-23 the
Company incorporated wholly owned subsidiary Maiz Citchem Limited effective
November 11 2022.

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2.3 Stock holders sells

Gujarat Ambuja Cements Ltd, India’s fourth-biggest cement maker by capacity, has
sold part of its stake in Ambuja Cement India Ltd to Holcim Ltd for Rs527 crore. The
company sold a third of its 33% stake in Ambuja Cement India, the holding company
through which Holcim and Gujarat Ambuja own a share in ACC Ltd.

India’s biggest cement maker, Gujarat Ambuja said in a statement on Tuesday. “We
will use the money to fund our cement and power expansion plans," Gujarat Ambuja
managing director Anil Singhvi said Gujarat Ambuja, part-owned by Holcim, the
world’s second-largest cement producer, had said on 2 February that it planned to spend
Rs3,350 crore to expand capacity.

Gujarat Ambuja made a profit of Rs241 crore from the sale of the 9.5 million shares to
Holcim, according to the statement. Increased spending on roads, dams and bridges in
the country is boosting demand for cement, spurring Holcim to invest $2 billion (Rs8,
800 crore) in India.

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 CHAPTER 3

THE INDIAN CEMENT INDUSTRY

3.1 Production:

India is the second-largest producer of cement in the world. It accounts for more than
8% of the global installed capacity. India has a lot of potential for development in the
infrastructure and construction sector and the cement sector is expected to largely
benefit from it. Furthermore, on the back of rising rural housing demand, the
consumption of cement in India has been growing consistently as it is one of the
cheapest products to buy in terms of Rest. /kg. Strong expansion of the industrial sector,
which has fully recovered from the COVID-19 pandemic shock, is one of the main
demand drivers for the cement industry. As a result, there is a strong potential for an
increase in the long-term demand for the cement industry. Some of the recent initiatives,
such as the development of 98 smart cities, are expected to significantly boost the
sector.

Aided by suitable Government foreign policies, several foreign players such as Lafarge
Holcim, Heidelberg Cement, and Vicar have invested in the country in the recent past.
A significant factor which aids the growth of this sector is the ready availability of raw
materials for making cement, such as limestone and coal.

Currently, the installed cement capacity in India is 553 MTPA with a production of 298
MTPA. Ambuja Cements Ltd, part of Swiss building material major Holcim group
(earlier Lafarge Holcim), on Thursday announced an investment of Rs 3,500 crore for
expansion of its cement grinding capacity. “The board has approved in principle an
investment of Rs 3,500 crore for a cement grinding expansion plan of potential 7.0
million tonnes across our existing grinding units at Sank rail and Farakka and at a
greenfield (fresh) location at Barh, in Bihar," Neeraj Akhoury, CEO of Holcim India
and MD & CEO of Ambuja Cements, said in an earnings statement.

This is supported by a 3.2-million tonne brownfield (existing) clinker expansion at the

company's existing integrated plant in Bhatapara, Chhattisgarh, he added. Ambuja
Cements Ltd is one of the leading cement companies in India and is active in four
business segments cement, aggregates, ready-mix concrete, and solutions & products.

14
Currently, Ambuja Cement has an annual cement production capacity of 31 million
tonnes with six integrated cement manufacturing plants and eight cement grinding units
across the country. Its consolidated revenue from operation stood at Rs 28,965.46 crore
in 2021.

3.2. Market shares

Grasim Industries Limited is an Indian manufacturing company based in Mumbai. Since

its inception in 1947 as a textile manufacturer, Grasim has diversified into textile raw
materials like viscose staple fibre (VSF) and viscose filament yarn, chemicals and
insulators, along with cement and financial services through its subsidiaries UltraTech
Cement and Aditya Birla Capital respectively. The company is a part of the Aditya Birla
Group. Grasim is the world's largest producer of viscose rayon fibre with about 24
percent market share. Textiles and related products contribute to 15 percent of the
group's turnover.

Ambuja Cements is an India-based cement manufacturing company. The principal

business of the Company is the manufacturing and sale of cement and cement-related
products. The Company with its subsidiary ACC Ltd. has a capacity of over 67.5 million
tons with fourteen integrated cement manufacturing plants and sixteen cement grinding
units across the country.

The company had entered into a strategic partnership with Holcim, the second-largest
cement manufacturer in the world from 2006. From 2010 to 2022, Holcim held a 61.62
percent controlling stake in Ambuja Cements. In 2022, Holcim announced that it would
exit from the Indian market after 17 years of operations and listed its stakes in Ambuja
Cements and ACC for sale. Later last year, Adani Group acquired Holcim's stake in
Ambuja Cements and ACC for $10.5 billion.

In the December quarter, Grasim Industries reported a 44 percent rise in consolidated

net profit at ₹2,516 crore versus ₹1,746 crore in the year-ago period. Its revenue from
operations, meanwhile, jumped 17 percent YoY to ₹28,638 crore in the quarter under
review against ₹24,402 crore in the corresponding quarter of last year.

Ambuja Cements, on the other hand, reported a 13 percent rise in its consolidated net
profit to ₹488 crore in the December 2022 quarter versus ₹431 crore in the same quarter
last year. Its revenue from operations grew just 4 percent to ₹8,036 crore for the quarter
under review as against ₹7,710 crore in the corresponding quarter of last year.

15
"Ambuja Cement is expanding its capacity to meet the growing Cement demand, and it
has outlined its expansion program to take the total capacity of both Ambuja and ACC
combined to 140 MTPA from the current 68 MTPA by FY28. The company aims to
fund its expansion through internal accruals. The company is also working on many
synergies with other Adani group companies to optimize logistics, fuel sourcing, and
integration between the two companies. It is expecting to improve its EBITDA/tonne
by ₹300-400 in FY24 on the back of the above synergies. We are positive about the
growth prospect of the company, and currently, we have a BUY rating on the company,"
said Srimal.

3.3. Plants

1. AMBUJA CEMENTS LIMITED- UNIT- MARWAR MUNDWA

RAJASTHAN
2. AMBUJA CEMENTS LTD (UNIT: AMBUJA NAGAR)- GUJARAT
3. AMBUJA CEMENTS LTD (UNIT: BHATAPARA II)- CHHATTISGARH
4. AMBUJA CEMENTS LTD (UNIT: BHATAPARA)- CHHATTISGARH
5. AMBUJA CEMENTS LTD (UNIT: BHATINDA) (G)- PUNJAB
6. AMBUJA CEMENTS LTD (UNIT: DADRI) (G)- UTTAR PRADESH
7. AMBUJA CEMENTS LTD (UNIT: DARLAGHAT)- HIMACHAL PRADESH
8. AMBUJA CEMENTS LTD (UNIT: FARAKKA) (G)- WEST BENGAL
9. AMBUJA CEMENTS LTD (UNIT: MAGDALLA) (G)- GUJARAT
10. AMBUJA CEMENTS LTD (UNIT: MARATHA)- MAHARASHTRA
11. AMBUJA CEMENTS LTD (UNIT: NALAGARH) (G)- HIMACHAL
PRADESH
12. AMBUJA CEMENTS LTD (UNIT: RABRIYAWAS)- RAJASTHAN
13. AMBUJA CEMENTS LTD (UNIT: RAURI)- HIMACHAL PRADESH
14. AMBUJA CEMENTS LTD (UNIT: ROORKEE) (G)- UTTARAKHAND
15. AMBUJA CEMENTS LTD (UNIT: ROPAR) (G)- PUNJAB
16. AMBUJA CEMENTS LTD (UNIT: SANKRAIL) (G)- WEST BENGAL

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 CHAPTER 4

MANUFACTURING
4.1. Plant Location and Their Capacities:

Ambuja Cements Limited, a part of the Adani Group, is a prominent cement company
in India, known for its homebuilding solutions. It was established in 1981 as a joint
venture between Gujarat Industrial Investment Corporation and Narottam Sekhsaria &
Associates. Over the years, it underwent several name changes and expansions,
becoming a major player in the cement industry. Ambuja Cements operates six
integrated cement plants, eight cement grinding units, and a vast network of channel
partners, with a total capacity of 31.45 MTPA.

Notably, the company owns a captive port with three terminals along India's western
coast, facilitating efficient cement shipments. It also has its fleet of ships and
subsidiaries, including Dang Cement Industries, M.G.T Cements, Chemical Limes
Mundwa, and Dirk India Pvt. Ltd.

Ambuja Cements has a history of collaborations and expansions, partnering with

global companies like Krupp Polysius, Bakau Wolf, and Fuller KCP. It has
commissioned multiple cement plants and clinker production lines in various regions
of India.

In 2006, Holcim acquired management control of the company, leading to further

expansions and developments. The company has consistently increased its capacity
and product offerings, including specialized cement products and sustainable
solutions.

In 2021, Ambuja Cements joined the Adani Group, marking a significant change in
ownership and management. The company continues to grow and invest in new
facilities, further establishing its presence in the Indian cement industry.

4.2. GACL&Their Subsidiaries:

• Kakinada Cements Limited, India

• M.G.T. Cements Private Limited, India
• Chemical Limes Mundwa Private Limited, India
• Dang Cement Industries Private Limited, Nepal
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• Dirk India Private Limited, India
• Cement Sustainability Initiative (CSI) of World Business Council for Sustainable
Development (WBCSD)
• Indian Business Biodiversity Initiative (IBBI)
• Leaders for Nature (LfN) India
• The Global Compact Network India Ambuja is a member of the following industry
associations: G4-16
• Confederation of Indian Industry (CII)
• Federation of Indian Chambers of Commerce and Industry (FICCI)
• The Associated Chambers of Commerce and Industry of India (ASSOCHAM)
• Bombay Management Association (BMA)
• Indian Merchants’ Chamber (IMC)
• Bombay Chamber of Commerce and Industry (BCCI

Gujarat Alkalis and Chemicals Limited (GACL) was incorporated on 29th March, 1973
in the State of Gujarat by Gujarat Industrial Investment Corporation Limited (GIIC), a
wholly owned company of Govt. of Gujarat, as a Core Promoter.

The Company commenced its operations in 1976 with 37,425 MTPA Caustic Soda
Plant based on the then, state-of-the-art Mercury Cell process at its Plant which is
situated 16 km North of Vadodara near Village Ranoli on the main Railway track route
between Ahmedabad and Mumbai.

Right from the inception, GACL has been following the strategy of continuous capacity
expansion in core areas. The first stage expansion of the Caustic Soda Plant raising the
capacity to 70,425 MTPA was undertaken in October, 1981 followed by a
diversification programme to produce 2000 MTPA of Sodium Cyanide in December,
1982.

In 1984, the second stage expansion to increase the capacity of Caustic Soda Plant to
103,425 MTPA was undertaken. Simultaneously, the Company undertook the
diversification project for manufacture of 10,560 MTPA of Chloromethane using
Chlorine, a co-product of the Company and in 1991, the capacity of Chloromethane
production was doubled.

Since production of Caustic Soda is highly power intensive, in order to reduce power
cost and to eliminate mercury pollution, the Company during the year 1989 converted
one of its Cell Houses producing Caustic Soda from Mercury Cell Technology to
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environment friendly Membrane Cell Technology, thereby eliminating the use of
mercury. The Capacity of Caustic Soda was also increased to 132000 MTA.

The conversion of second Mercury Cell to Membrane Cell was carried out during
March, 1994, thereby eliminating the total use of mercury from the Complex for
production of Caustic Soda and increasing the capacity of plant along with this
conversion to 170000 MTA including Potassium Hydroxide facility..

As power is the major input for production of Caustic Soda and constitutes about 65%
- 70% of the cost of production, the Company along with other Corporations like M/s.
GSFC, Petrofils Co-operative Ltd. and Gujarat Electricity Board promoted a gas based
power unit in Vadodara under the name of Gujarat Industrial Power Company Ltd.
(GIPCL) during the year 1985. As a promoter of GIPCL, the Company gets low cost
power, as the plant is gas based and is depreciated.

In order to add further value to its products, the company had set up manufacturing
facility for production of 11000 MTA Hydrogen Peroxide (100%) at Vadodara
Complex during the year 1996 to utilize Hydrogen gas, which is a co-product from
Caustic Soda Process.

4.3. Capacity of Cement in India

Adani Group-owned Ambuja Cements said on Friday it would expand its blended
cement production capacity by 14 million metric tonnes, as part of a previously
announced plan to double capacity over five years.

Ambuja placed orders to expand clinker capacity by eight million tonnes at two units
that would operate on green power or renewable energy and help increase production
of blended green cement by 14 million tonnes, it said in a stock exchange filing.

The projects are expected to be commissioned in two years and will be funded using
internal accruals, it added.

"These brownfield expansion projects are part of our strategy to double our production
capacity over the next five years from the current capacity of 67.5 million tonnes a
year," Ajay Kapur, Chief Executive Officer of Ambuja's cement business said.

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Ambuja, along with its subsidiary ACC, has the capacity to produce 67.5 million tonnes
with fourteen cement manufacturing plants and sixteen cement grinding units across
India.

Meanwhile, rival UltraTech Cement said last month that its expansion program is
progressing as scheduled, with the next phase expected to see a growth of 22.6 million
tonnes a year, while commercial production from its new capacities is expected to go
on stream in a phased manner by 2025 or 2026 financial year.

4.4. Cement process, Fuel cost & Cost production

Cement process Extraction and processing
The manufacturing of cement involves sourcing raw materials through quarrying or
mining, depending on the type of rock. Hard rocks like limestone, slate, and certain
shales are typically quarried, often requiring blasting. Some deposits are accessed
through underground methods. Softer rocks like chalk and clay can be excavated
directly using heavy machinery.
Once extracted, these materials are transported to a crushing plant using trucks,
railway cars, conveyor belts, or ropeways. Alternatively, they can be transported as a
wet slurry through pipelines. In areas where high-lime-content limestone are scarce,
beneficiation processes may be employed. One such process is froth flotation, which
removes excess silica or alumina to improve the quality of the limestone. However,
this method is costly and used sparingly when no other options are available

Manufacture of cement
The manufacture of Portland cement involves four stages: (1) crushing and grinding
raw materials, (2) blending materials in correct proportions, (3) burning the mix in a
kiln, and (4) grinding the resulting "clinker" with a small amount of gypsum to control
cement setting time. These processes can be categorized as wet, dry, or semi-dry
depending on whether the raw materials are ground wet, dry, or initially dry and then
moistened before kiln feeding.
Cement production is a significant contributor to global warming, responsible for 4-
8% of the world's carbon dioxide (CO2) emissions. Mitigation strategies include
improving energy efficiency in cement plants, shifting to renewable energy sources,
and capturing and storing emitted CO2. Reducing the reliance on clinker production
through novel cements and alternative formulations is also a key focus area to address
emissions in the cement industry.

20
Crushing and grinding
All except soft materials are first crushed, often in two stages, and then ground, usually
in a rotating, cylindrical ball, or tube mills containing a charge of steel grinding balls.
This grinding is done wet or dry, depending on the process in use, but for dry grinding
the raw materials first may need to be dried in cylindrical, rotary dryers. Soft materials
are broken down by vigorous stirring with water in wash mills, producing a fine slurry,
which is passed through screens to remove oversize particles.

Blending
A first approximation of the chemical composition required for a particular cement is
obtained by selective quarrying and control of the raw material fed to the crushing and
grinding plant. Finer control is obtained by drawing material from two or more batches
containing raw mixes of slightly different composition. In the dry process these mixes
are stored in silos; slurry tanks are used in the wet process. Thorough mixing of the dry
materials in the silos is ensured by agitation and vigorous circulation induced by
compressed air. In the wet process the slurry tanks are stirred by mechanical means or
compressed air or both. The slurry, which contains 35 to 45 percent water, is sometimes
filtered, reducing the water content to 20 to 30 percent, and the filter cake is then fed to
the kiln. This reduces the fuel consumption for burning.

Burning
Cement production has evolved through various kiln types, from early batch kilns to
continuous shaft kilns. The dominant method today is the rotary kiln, which is a long
cylindrical structure lined with refractory materials. Raw materials are introduced at the
top and gradually move down as the kiln rotates. Fuel, such as coal, oil, or natural gas,
is injected for heating, reaching temperatures of 1,350 to 1,550°C. Heat exchangers are
used to increase efficiency.

The resulting product, clinker, is cooled and can be ground into cement or stored. In the
semidry process, raw materials with some water content are preheated on a traveling
chain grate before entering a shorter rotary kiln. Dust emissions are a concern, and
pollution control systems are commonly used.

Over 50% of emissions from cement production are linked to clinker production,
motivating efforts to reduce clinker use. Modern plants use advanced instrumentation
and automation for control. Some plants even automatically sample and adjust raw
material composition. The largest rotary kilns can produce over 5,000 tons of cement
per day.

21
Grinding
The clinker and the required amount of gypsum are ground to a fine powder in
horizontal mills similar to those used for grinding the raw materials. The material may
pass straight through the mill (open-circuit grinding), or coarser material may be
separated from the ground product and returned to the mill for further grinding (closed-
circuit grinding). Sometimes a small amount of a grinding aid is added to the feed
material. For air-entraining cements (discussed in the following section) the addition of
an air-entraining agent is similarly made.
Finished cement is pumped pneumatically to storage silos from which it is drawn for
packing in paper bags or for dispatch in bulk containers.

Hydration
The most important hydraulic constituents are the calcium silicates, C2S and C3S. Upon
mixing with water, the calcium silicates react with water molecules to form calcium
silicate hydrate (3CaO · 2SiO2 · 3H2O) and calcium hydroxide (Ca [OH] 2). These
compounds are given the shorthand notations C–S–H (represented by the average
formula C3S2H3) and CH, and the hydration reaction can be crudely represented by the
following reactions:
2C3S + 6H = C3S2H3 + 3CH
2C2S + 4H = C3S2H3 + CH
During the initial stage of hydration, the parent compounds dissolve, and the dissolution
of their chemical bonds generates a significant amount of heat. Then, for reasons that
are not fully understood, hydration comes to a stop. This quiescent, or dormant, period
is extremely important in the placement of concrete. Without a dormant period there
would be no cement trucks; pouring would have to be done immediately upon mixing.

Following the dormant period (which can last several hours), the cement begins to
harden, as CH and C–S–H are produced. This is the cementitious material that binds
cement and concrete together. As hydration proceeds, water and cement are
continuously consumed. Fortunately, the C–S–H and CH products occupy almost the
same volume as the original cement and water; volume is approximately conserved, and
shrinkage is manageable.

Although the formulas above treat C–S–H as a specific stoichiometry, with the formula
C3S2H3, it does not at all form an ordered structure of uniform composition. C–S–H is
actually an amorphous gel with a highly variable stoichiometry. The ratio of C to S, for
example, can range from 1:1 to 2:1, depending on mix design and curing conditions.

22
Structural properties
The strength developed by Portland cement depends on its composition and the fineness
to which it is ground. The C3S is mainly responsible for the strength developed in the
first week of hardening and the C2S for the subsequent increase in strength. The
alumina and iron compounds that are present only in lesser amounts make little direct
contribution to strength.

Set cement and concrete can suffer deterioration from attack by some natural or artificial
chemical agents. The alumina compound is the most vulnerable to chemical attack in
soils containing sulphate salts or in seawater, while the iron compound and the two
calcium silicates are more resistant. Calcium hydroxide released during the hydration
of the calcium silicates is also vulnerable to attack. Because cement liberates heat when
it hydrates, concrete placed in large masses, as in dams, can cause the temperature inside
the mass to rise as much as 40 °C (70 °F) above the outside temperature. Subsequent
cooling can be a cause of cracking. The highest heat of hydration is shown by C3A,
followed in descending order by C3S, C4AF, and C2S.

Types of Portland cement

There are various types of Portland cement, standardized by the ASTM in the United
States. These include ordinary, modified, high early-strength, low-heat, and sulphate-
resistant cement. In some countries, Type II is omitted, and Type III is called rapid-
hardening, while Type V is referred to as Ferrari cement in parts of Europe.

Special types of cement exist, such as coloured cement, air-entraining cement to

improve freeze-thaw resistance, low-alkali cement for specific aggregates, masonry
cement for mortar, waterproof cement, hydrophobic cement for storage under
unfavourable conditions, and oil-well cement for high-temperature and pressure
conditions in oil wells.

Slag cements incorporate granulated slag with Portland cement and vary in slag content.
They have properties similar to Portland cement but with different chemical
compositions, providing resistance to chemical attacks.

Supersulfated cement combines granulated slag, hard-burned gypsum, and a small

amount of Portland cement, offering strength properties and enhanced resistance to
chemical attacks.

23
Pozzolanic cements mix Portland cement with pozzolanic materials, either natural or
artificial, to create compounds with cementitious properties. High-alumina cement is
rapid-hardening and used in refractory linings.

Expanding and nonshrinking cements expand slightly upon hydration, counteracting

concrete's contraction when drying. Gypsum plasters are used in various applications,
produced by heating gypsum to create plaster of Paris or anhydrous calcium sulphate
plasters.
Strength
The paragraph discusses various aspects of energy consumption and environmental
impact in the cement manufacturing industry. It mentions that cement production is an
energy-intensive process, with a significant portion of energy use coming from the high-
temperature kilns. Different types of fuels, including coal, petroleum coke, and alternate
sources like biomass, are used, and their energy content varies. The choice of fuel and
energy conversion efficiency can affect cement production's carbon dioxide (CO2)
emissions.

The paragraph also notes that energy consumption in cement production varies
depending on the production process, and the major share of thermal energy
consumption is attributed to pyro-processing. Electrical energy is used for various
operations, such as equipment operation and crushing/grinding. Different fuels,
including natural gas, fuel oil, and coal, have varying energy contents and are used in
cement kiln firing.

The cement industry's rapid growth in Nigeria is highlighted, and the need to identify
and reduce energy wastage in the sector is emphasized. Additionally, the high unit fuel
cost for cement production in Nigeria compared to other countries is mentioned. The
research aims to analyse the cost, environmental impact, and health consequences of
different energy sources used in cement manufacturing...

CHAPTER 5

LOGISTICS
5.1. Order processing

Ambuja Cements is the top choice of Industrialists and builders across the Country. The
company is known for its hassle-free, sustainable solutions for cement building and
24
construction. Over the years, Ambuja Cement has introduced many laterals like Ambuja
Kawach, Ambuja Plus, Ambuja Coolwalls and many more. All of them are growing
and leading in their own space by providing better and tech-driven solutions. If you
desire to Bulk buy Ambuja Cement products for Industrial or construction purposes
then you can find all the product types here under one roof.
Ambuja
Currently, Ambuja Cement plants have a manufacturing capacity of over 29.65 million
tonnes. There are two cement products that are the most highly preferred choice among
all cement providers. They are- High performance Ordinary Portland Cement (OPC)
and Pozzolana Portland Cement (PPC) also called OPC and PPC.

The company has placed equal importance on the quality and sustainable production of
the products. One of the high demand products: PPC uses fly ash as a raw material in
up to 25% of production.

Features & Benefits:

• Best benchmarking quality standards in the industry
• Emphasis on delivering consistent quality
• Strong focus on research & development
• High quality water-repellent properties of cement
• Superior chemical properties of products
• Types of Ambuja cement products
• Type Name

Description & Uses

• Ambuja Kawach :Specially formulated cement with high quality water-repellent
properties
• Ambuja Plus : Special quality PPC cement with advanced SPE technology
• Ambuja Cool Walls: Concrete walls built with heat barrier technology that not only
maintain the coolness but also prevents the efflorescence problem.
• Ambuja Compose: A sustainable cement solution with the lightest carbon footprint.
• Ambuja Buildcem: A high strength Portland Pozzolana Cement (PPC) with strong
chemical and physical properties.
• Ambuja Powercem: Ordinary Portland Cement (OPC), built with high consistency
standards for strong and durable construction of buildings, railways, bridges, etc.
• Ambuja Railcem: A High Blaine Portland cement used in constructing railway
sleepers for speedy trains.
25
5.2. Inventory Manage:

Ambuja Cements (OTCPK: AMBUY) Inventory: 0.00 (As of Jun. 2023) View and
export this data going back to 2011. Start your Free Trial
Inventory Turnover measures how fast the company turns over its inventory within a
year. It is calculated as Cost of Goods Sold divided by Total Inventories. Ambuja
Cements’ Cost of Goods Sold for the three months ended in Jun. 2023 was $135.46
Mil. Ambuja Cements’ Average Total Inventories for the quarter that ended in Jun.
2023 was $0.00 Mil. Days Inventory indicates the number of days of goods in sales
that a company has in the inventory. Ambuja Cements’ Days Inventory for the three
months ended in Jun. 2023 was 0.00.
Inventory-to-Revenue determines the ability of a company to manage their inventory
levels. It measures the percentage of Inventories the company currently has on hand
to support the current amount of Revenue. Ambuja Cements’ Inventory-to-Revenue
for the quarter that ended in Jun. 2023 was 0.00.

Ambuja Cements Inventory Turnover Historical Data

The historical data trend for Ambuja Cements’ Inventory Turnover can be seen below:

For Operating Data section: All numbers are indicated by the unit behind each term
and all currency related amount are in USD.
For other sections: All numbers are in millions except for per share data, ratio, and
percentage. All currency related amount are indicated in the company's associated
stock exchange currency.
Ambuja Cements Annual Data:
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Dec17 Dec18 Dec19 Dec20
Inventory Turnover Premium Member Only 1.86 2.03 1.81 2.19 2.40

Ambuja Cements Quarterly Data:

Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Jun22 Sep22 Jun23
Inventory 1.10 0.37 0.20 0.17 -
Turnover
Ambuja Cements Inventory Turnover Calculation

26
Ambuja Cements’ Inventory Turnover for the fiscal year that ended in Dec. 2020 is
calculated as

Inventory Turnover (A: Dec. 2020):

= Cost of Goods Sold / Average Total Inventories
= Cost of Goods Sold (A: Dec. 2020 ) / ((Total Inventories (A: Dec. 2019 )
+ Total Inventories (A: Dec. 2020 )) / count )
= 622.984 / ( (294.631 + 223.933) / 2 )
= 622.984 / 259.282
= 2.40
Ambuja Cements’ Inventory Turnover for the quarter that ended in Jun. 2023 is
calculated as

Inventory Turnover (Q: Jun. 2023)

= Cost of Goods Sold / Average Total Inventories
= Cost of Goods Sold (Q: Jun. 2023 ) / ((Total Inventories (Q: Sep. 2022 )
+ Total Inventories (Q: Jun. 2023 )) / count )
= 135.456 / ( (0 + 0) / 1 )
= 135.456 / 0
= N/A
For Operating Data section: All numbers are indicated by the unit behind each term
and all currency related amount are in USD.
For other sections: All numbers are in millions except for per share data, ratio, and
percentage. All currency related amount are indicated in the company's associated
stock exchange currency.
Ambuja Cements (OTCPK: AMBUY) Inventory Turnover Explanation
Inventory Turnover measures how fast the company turns over its inventory within a
year. A higher Inventory Turnover means the company has light inventory. Therefore
the company spends less money on storage, write downs, and obsolete inventory. If
the inventory is too light, it may affect sales because the company may not have
enough to meet demand.
1. Days Inventory indicates the number of days of goods in sales that a company
has in the inventory.
Ambuja Cements’ Days Inventory for the three months ended in Jun. 2023 is
calculated as:

Days Inventory = Average Total Inventories (Q: Jun. 2023) / Cost of Goods Sold
(Q: Jun. 2023) * Days in Period
27
= 0 / 135.456 * 365 / 4
= 0.00
2. Inventory-to-Revenue determines the ability of a company to manage their
inventory levels. It measures the percentage of Inventories the company currently has
on hand to support the current amount of Revenue.

Ambuja Cements’ Inventory to Revenue for the quarter that ended in Jun. 2023 is
calculated as

Inventory-to-Revenue = Average Total Inventories (Q: Jun. 2023) /Revenue (Q: Jun.
2023)
= 0 / 1059.639
= 0.00
For Operating Data section: All numbers are indicated by the unit behind each term
and all currency related amount are in USD.
For other sections: All numbers are in millions except for per share data, ratio, and
percentage. All currency related amount are indicated in the company's associated
stock exchange currency.

Be Aware
Usually retailers pile up their inventories at holiday seasons to meet the stronger
demand. Therefore, the inventory of a particular quarter of a year should not be used
to calculate Inventory Turnover. An average inventory is a better indication.

Ambuja Cements Inventory Turnover Related Terms

Thank you for viewing the detailed overview of Ambuja Cements’ Inventory Turnover
provided by GuruFocus.com. Please click on the following links to see related term
page.

5.3. Packing:

It is packed in a special tamperproof bag, which keeps moisture out and thus retains the
desired properties of cement for longer. The value proposition of leak-proof Ambuja
Plus is said to have been highly appreciated by customers in the marketplace.

Neeraj Akhoury, CEO India Holcim and MD & CEO of Ambuja Cement, said: "We are
committed to the net zero pledge of our parent Holcim and our low carbon product
offerings are an important part of this endeavour. By developing these products, we
28
want to provide green living choice to the customers to ensure a sustainable tomorrow
for future generations."

Rajiv Kumar, chief commercial officer, Ambuja Cement, said: "Ambuja Plus is a
special quality sustainable premium category PPC cement that's made with an advanced
formula and offers greater strength to customers' homes. Key Features and notable
advantages are strong and dense concrete, higher strength, better workability, ease of
working, superior finish and tamper-proof packing."

Ambuja Cement produces ~90% blended cement, said to reduce carbon footprint by up
to 30% compared with ordinary Portland cement. All of Ambuja's blended cements are
now listed in GRIHA's (Green Rating for Integrated Habitat Assessment) Green
Product Catalogue.

GRIHA is a national green rating system of India developed by the Ministry of New
and Renewable Energy, Government of India.

5.4. Transportation

Mode of Transportation Rail Transport

To commence the dispatches by Rail transport, we need railway wagons. For that
purpose, we need different sidings.
The use of both the sidings is not only for cement / clinker dispatches, but we use these
sidings for receipt of raw material such as coal and gypsum. To dispatch from the above
sidings, we must request Railways for providing the wagons for loading cement/
clinker. This request is known as indent of wagons to Railways and for that purpose we
fill our requirement in a Railway Register giving following details.
(i) No. of wagons required
(ii) Type and no. of wagon
(iii) Destination
(iv) Consignee details

In case of cement, Railway provides us 40 Covered wagons and in case of clinker,

Railway provides us 58 Open wagons, which is known as 1 rake and the average
quantity to be loaded in these rakes are as under :- (a) Cement - a rake of 40 wagons-
2600 MT approx.
(b) Clinker- a rake of 58 box wagons - 3800 MT approx.

29
The capacity of each wagon, in case of cement varies from 64 MT to 66 MT and in case
of clinker the capacity is about 62 MT. Railways provide us wagons as per the
availability of wagons and once the rake is loaded in the siding, we submit a memo to
Railways certifying that the loading of rake is completed, because Railways give a
specific time for rake loading and in case rake is not loaded in time, demurrage is
charged on hourly basis for the extra time utilized for loading. The demurrage is charged
on the capacity of the rake if the loading is going on after specific hours and the rate of
demurrage is Rs. 150 per hour per wagon. However, on a monthly basis, we request
Railways to waive off the demurrage by giving the proper reasons on what account the
demurrage accrued like shortage of labour, break down in the plant, road transport strike
etc. and Railways consider and waiver of the demurrage accordingly.

This procedure is known as Demurrage Waiver Application/ Appeal from Railways.

The appeal is made to the following officers in Railways through concerned in charge
Goods Clerk.

Road Transport means the product is dispatched by trucks, trailers and tankers / bulkers
to the customers or final destinations. The arrangement of these trucks, trailers and
tankers/ bulkers are provided by authorized transporters. When truck arrives at plant for
loading the product, the truck driver carries a Transporters Appal, which indicates the
destination, quantity to be loaded and sale/ customer order and the tappal is produced
to the Dispatch Department.

The Dispatch Assistant checks the authentication of the tappal, i.e. whether the tappal
issued is signed by the authorized person, type of vehicle and quantity balance in order
before allowing the truck/ trailer/ tanker/ bulker for loading.

Once the Dispatch Assistant satisfies with the tappal, he issues Loading Memo/ Loading
Instruction Slip and allow for loading the product. Then the vehicle comes to the
Packing Plant via weighbridge, where we record tare weight of the vehicle. Tare weight
is the weight of the empty truck weighbridge provides a secret number on the Loading
Instruction in which the weigh bridge operator captures the data in to the system. Then
the truck comes to Packing Plant, where Tally checker receives the truck and instructs
the truck driver to be in queue according to the type of product to be loaded in the truck.
After loading the product, in case of packed cement the Tally checker counts the no. of
bags loaded in the truck and in case of bulk cement loading tally checker ensures the
sealing arrangement of all manholes or outlets, so the product does not leak from any
of the manholes or outlets to avoid theft or adulteration in product through manholes.

30
In 1992, Ambuja Cements was the first cement company in the country to kick-start
transportation of bulk cement by coastal shipping as the best mode of sustainable
transport among all other modes of transport and the most cost-effective way. It was
also the first to introduce Shore Power Supply to all her ships at the captive jetties.

The company, which has a fleet of about 10 ships, was the first to use bio-fuels from
soya extract in two of its ships Ambuja Mukund and Ambuja Vaibhav as part of an
exercise flagged off by DG Shipping to to cut greenhouse gas emissions .

5.5. Wharehouse & Distribution

Transport by bulk is now becoming increasingly the primary mode of cement
distribution. Cement at the plant is generally stored in silos from where the cement
leaves the plant either in bags or in bulk. Bagged movement will require bagging
machines, truck loading conveyors etc. while bulk movement is generally done through
enclosed bulk tankers which are pressure vessels. Currently, a number of cement
companies are moving cement in bulk through such bulk tankers but the costs are not
working out to be economical considering the low unit volumes due to poor road
conditions and empty returns.

Many cement companies are concerned about the unviable cost of transportation of
cement in bulk tankers on Indian roads because of these reasons. One low cost option
lies in the use of lingered containers. This involves the use of standard 20-foot
containers available from container leasing companies or from private operators. A
heavy-duty fluidizable polythene liner is inserted into these containers. These liners
have their own bulkhead fillings which enable filling and unloading of the cement into
the linered container through suitable spouts. At the destination, the container has to
be tilted for the cement to flow out of another spout at the bottom of the bulkhead. The
cement is then pumped pneumatically in a closed environment to adjoining silos. This
system is also applicable to all dry free flowing bulk powders.
CHAPTER 6
FUTURE OUTLOOK

Adani Group-owned Ambuja Cements it would expand its blended cement production
capacity by 14 million metric tonnes, as part of a previously announced plan to double
capacity over five years.

31
Ambuja placed orders to expand clinker capacity by eight million tonnes at two units
that would operate on green power or renewable energy and help increase production
of blended green cement by 14 million tonnes, it said in a stock exchange filing.

The projects are expected to be commissioned in two years and will be funded using
internal accruals, it added.

"These brownfield expansion projects are part of our strategy to double our production
capacity over the next five years from the current capacity of 67.5 million tonnes a
year," Ajay Kapur, Chief Executive Officer of Ambuja's cement business said.

Ambuja, along with its subsidiary ACC, has the capacity to produce 67.5 million tonnes
with fourteen cement manufacturing plants and sixteen cement grinding units across
India.

Meanwhile, rival UltraTech Cement said last month that its expansion program is
progressing as scheduled, with the next phase expected to see a growth of 22.6 million
tonnes a year, while commercial production from its new capacities is expected to go
on stream in a phased manner by 2025 or 2026 financial year.

CHAPTER 7
REFERENCES
1. Beranger, L.G, Yamini, S., 2009, Performance of the Indian Cement
Industry: The Competitive Landscape, ArthaVijanana, and LI (3), p. 209-242.
2. Dhivya, J., Shobanpriya, P., Karthika, P., Bakiyaraj, K., 2017, A study on
financial performance of cement industry with special reference to ACC Limited,
International Journal of Creative Research Thoughts, 5(4), p. 1627-1635.
3. Ershad, S., Uddin, M., Faruk O., 2021, Analysis of the financial
performance of selected cement industries of Bangladesh, Internal Journal of Finance
Research, 2(1). P.46-57.
4. Prajapati, J.K., 2019, Financial performance analysis of selected cement
companies in India, IJESE, 9(11), P. 24109-24111.
5. Soni, S., 2018, A study on the financial performance of JK cement,
International Journal of Research and Review, 1(5), p. 115-119.

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