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

3.  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

4.  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 .

5.  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

6.  Mr. Suresh Neotia – Chairman Emiretus
 Mr. Narotam Sekhsaria – Chairman
 Mr. Paul Hugentobler - Vice Chairman
 Mr Ajay Kapur - CEO

7. Revenue decreased by 15.6%
2175.16
2578.45
303.97
468.9
Net Profit decreased by 35.17%
1.97
3.05
EPS decreased by 35.40%

9. Last traded price: 207.50
52 Weeks High 220.70 on 5 Oct 12
52 Weeks low - 135.60 on 23 May 12
Last dividend declared – 70% on 30 July 2012

10.  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

11.  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

12.  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.

13.  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.

14.  “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.

15. Strengths:
•One of the oldest so one of the most trusted
•Large capital backing, multi million tonne
capacity
•Wide distribution channels
•Dedicated ports and ships for transport
•One of the most eco friendly companies in the
sector
•JV partner, Holcim, instrumental in its rise
Weaknesses:
•Need of more market expansion
•Need of international marketing
•Not able to use foreign technologies in full swing
Opportunities:
•With the support of Holcim, ACL is looking for
potential acquisition targets
•Smart move of picking up stake in DLF and ACC
•ACL situated in the fastest developing state of
India, Gujarat
•Once the economy again booms, the investment in
the infrastructure sector will again grow
Threats:
•Its closest competitor, ACC is always at its heel
•A gradual slump in cement demand since the last 2
years
•Accusations of forming cement cartels with other
cement majors

16.  The closest competitor to Ambuja Cements is
ACC.

17.  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.

18.  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