INTERNATIONAL BUSINESS MANAGEMENT

SUBMITTED BY

C.VENGATESHWARAN 3511110036 MBA A

About Ambuja cement:

Ambuja Cements Ltd. (ACL) is one of the leading cement manufacturing companies in India. The Company, initially called Gujarat Ambuja Cements Ltd., was founded by Narotam Sekhsaria in 1983 with a partner, Suresh Neotia. Sekhsarias business acumen and leadership skills put the company on a fast track to growth. The Company commenced cement production in 1986. The global cement major Holcim acquired management control of ACL in 2006. Holcim today holds little over 46% equity in ACL. The Company is currently known as Ambuja Cements Ltd.

ACL has grown dynamically over the past decade. Its current cement capacity is about 25 million tonnes. The Company has five integrated cement manufacturing plants and eight 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 on par with the finest in the country. It is one of the most profitable and innovative cement companies in India. ACL is the first Indian cement manufacturers to build a captive port with three terminals along the countrys western coastline to facilitate timely, cost effective and environmentally cleaner shipments of bulk cement to its customers. The Company has its own fleet of ships. ACL has also pioneered the development of the multiple bio-mass co-fired technology for generating greener power in its captive plants. ACL has always met tough challenges and seized the opportunities that have come its way. It has nurtured the same spirit of enterprise and search for cutting-edge technology with which it started. It thus continues to be the driving force and in many ways a benchmark for the cement industry in India.

History:
The rapid growth of the Indian economy has developed the basic industries like cement, iron and steel and fertilizers have prospered. This is also a result of the govt.s incentives of developing such industries. At the time of the installation of this plant, there was not any cutthroat competition in the cement industry.

Thus, the above mentioned are the main reason, which encouraged this organization to enter into the cement industry. The AMBUJA CEMENT LTD. is a company, which has been promoted by the GUJARAT INDUSTRIAL AND INVESTMENT CORPORATION LTD. In coordination with the SEKHSARIA GROUP. Originally, the project was planned to be located near MAHUVA, District BHAVNAGAR.

All the primary procedure was completed land acquisition procedures were also completed in early May 1984. But the management due to non-corporation could not take the possession of the land and legal proceeding by the villagers compelled the management to change the planned project. Due to this management decided to locate the project at village VADNAGAR, Taluka -KODINAR in JUNAGADH District.

Immediately after taking this decision the management purchased the land for both factory building and housing colony at the new site. Gujarat Electricity Board had agreed to provide 19 M.V.A power for the plant and the construction of the double circuit 132kw feeder. Railway agreed to provide the railway siding facilities from Kodinar to Vadnagar, the plant site. In November 1984 the civil work commenced. The construction of the plants

started in March 1985 and was competed in August 1986. KRUPP POLYSIUS A.G, West Germany, one of the front runners in the cement world, had supplied the entire design and technology. Finally, the company started its commercial production in October in 1986. Later the company in order to expand its production setup and another plant in Kodinar itself called Gaj. Ambuja Line-1 in 1992 followed by the third one Gaj. Ambuja Line-2 in 1998 making the total production to reach approximately three million tons per annum marks.

SIZE OF THE UNIT AND FORM OF ORGANISATION

AMBUJA CEMENT LIMITED is neither a public nor a government company. It is a private limited company. The size of the organization is large scale industry.

The company is registered under the Indian private company act-1956. The form of the organization followed by ACL is of line and staff type. This can be said by viewing the organization chart, as described at coming pages in organization structure department.

The major functions are grouped under 5 departments and guided by a separate Vice President. The departments are as,

1. Technical Department 2. Finance Department 3. Commercial Department 4. Marketing Department 5. Personnel Department

ORGANIZATION STRUCTURE

M. D.

Director

Director

Sr. V.P. System & Audit

G.M.(A/c)

G.M. (I.T.)

Joint President Works Chief Security Officer G. M. Geology G. M. Mines

Joint President Mines & Geology D.G.M. Personnel G. M. Commu.

Liasoning

Land Dept

G.M. R&D

D.G.M. Commun.

G.M. B.C.T

G. M. Power & Plant

D.G.M. Civil

G. M. Mech.

PLANT PHOTOS

Foreign Market Entry Modes

The decision of how to enter a foreign market can have a significant impact on the results. Expansion into foreign markets can be achieved via the following four mechanisms:

Exporting Licensing Joint Venture Direct Investment

Exporting
Exporting is the marketing and direct sale of domestically-produced goods in another country. Exporting is a traditional and well-established method of reaching foreign markets. Since exporting does not require that the goods be produced in the target country, no investment in foreign production facilities is required. Most of the costs associated with exporting take the form of marketing expenses. Exporting commonly requires coordination among four players:

Exporter Importer Transport provider Government

Licensing
Licensing essentially permits a company in the target country to use the property of thelicensor. Such property usually is intangible, such as trademarks, patents, andproduction techniques. The

licensee pays a fee in exchange for the rights to use theintangible property and possibly for technical assistance.

potential to provide a very large ROI. However, because the licensee produces andmarkets the product, potential returns from manufacturing and marketing activities maybe lost.

Joint Venture
There are five common objectives in a joint venture: market entry, risk/reward sharing,technology sharing Other and joint product include development, political and conforming and to

governmentregulations.

benefits

connections

distribution

channelaccess that may depend on relationships.

Such alliances often are favorable when:

the partners' strategic goals converge while their competitive goals diverge;

the partners' size, market power, and resources are small compared to the industry leaders; and

partners' are able to learn from one another while limiting access to their own proprietary skills.

Foreign Direct Investment

Foreign direct investment (FDI) is the direct ownership of facilities in the target country.It involves the transfer of resources including capital, technology, and personnel. Direct foreign investment may be made through the acquisition of an existing entity or theestablishment of a new enterprise.

Direct ownership provides a high degree of control in the operations and the ability to better know the consumers and competitive environment. However, it requires a highlevel of resources and a high degree of commitment.

HRM DEPARTMENT:

The man power is the main source of personal department. The personal department is concern with man at work and relationship with a view to achieve the desired goal of organization. This department covers all level of personal, including the blue collar employees and white collar employees. These employees are helpful in achieving the organizations goal. According to B.P.Terry Personal Management is concern with the obtaining and maintaining of satisfaction and satisfied work force.

GUJARAT AMBUJA CEMENT LIMITED has time office department which is doing function of personal management. The business of the unit is regularly so there is a one type of employees in the unit and there is permanent.

The day I had taken visit in this unit the total employees of the firm is 4412. Who all are permanent. The relationship between employees and executive is good. There is no any case of conflict created. They always help to achieving organization desired goal.

MARKETING DEPARTMENT:

Marketing management is the process of planning and executing the conception pricing promotion and distribution of ideas goods and service to create exchange that satisfy individuals and organization goal. Marketing management can be practices in any market.

In modern age goods and services are produced in anticipation of demand and so the producers must try to create demand, otherwise they will have to close down the business sooner or later. And the demand can be created by marketing their products. In this way a firm which produced multiple products, but its product demand is less than what will be happen? These types of firms wind up earlier. So in modern age it is necessary to marketing their products.

AMBUJA CEMENT LIMITED has a separate department of marketing their product in market its all the products are sale in open market so they have needle Very much. Their marketing department is well established. Because in open market, there are many company to sell each their product. They have international trade so they have also some many expert of this type of trade.

The function of marketing department is done by Chairman, Vice-chairman, managing director and marketing expert in this firm.

FINANCE DEPARTMENT: It is said, Finance is the arms and legs of business . A potential and capable management can run the department very effectively. In finance department each and every decision should be taken in such way that every pie of money should be utilized in adequate manner.

In ACL the finance department is headed by the vice president, under him there are two groups of executives, one group of executives working at corporate office, Bombay. The second group of the executives working at side and is headed by the senior manager. Under him there are two sectional managers namely costing manager and account manager. Under those managers there is Deputy Manager, Assistant manager, Account Officer, Account assistants who are responsible to their respective levels.

Executive Management Team

Mr. Onne van der Weijde, Managing Director Mr. Ajay Kapur, Chief Executive Officer Mr. S.N. Toshniwal - Business Head (East) Mr. J.C. Toshniwal - Business Head (North) Mr. Jacques van Niekerk, Head Supply Chain Mr. Sanjeev Churiwala, Chief Financial Officer Mr. Vivek Agnihotri, National Head - Marketing & Commercial Services Mrs. Meenakshi Narain - Joint President (HR) Mr. Ghassan Broummana , Head - TSS Mr. Shakti Arora, Head - Central Purchase Office.