c
 Do you consider Gujarat Ambuja a world class company? Why?





  

The company was incorporated in the year 1981 as Ambuja Cements Pvt Ltd and it
was rehabilitated into a public limited company on 19th March 1983 as Gujarat
AmbujaCements Ltd, cement production is the role of the company in nature and a
cost efficient cement manufacturer in the country. It is a National Quality ISO 9002
certified company, the only cement company have this so. It's also the first to receive
the same and also have ISO 14000 Certification for environmental systems. It is also
having three Bulk Cement Terminals at Surat with a storage capacity of 15,000
tonnes has bulk cement unloading facility, Panvel with a storage capacity of 17,500
tonnes has a bulk cement unloading facility and in Galle 120 kms from Colombo, Sri
Lanka. It handles million tonnes of cement annually. The port terminal of the
company Muldwarka Gujarat, all weather port, 8 kms from Ambuja Nagarplant,
handles ships with 40,000 DWT. I s also equipped to export clinker and cement and
import coal and furnace oil. A fleet of seven ships with a capacity of 20500 DWT
ferry bulk cement to the packaging units.


        

   

After carrying out a detailed ana lysis of the case study, following points have
emerged, which support the contention of GACL being a world class company: -

(a) Owned Infrastructure

(b) Logistic Management

(c) Premium Brand - Only selling in Retail Markets

(d) Environment Friendly operations

(e) Social Corporate Citizen

(f) Low Cost Cement Producer

 

 
 

Ambuja is consistently maintaining its Focus Areas:

1 Best quality cement

2. Good packaging

3. Strong distribution network

 4. Customer service

5.Freight: The most successful of GACL¶s innovative strategies of cost cutting

was idea of sea transportation.

6. Fuel: Fuel strategy was also cost cutting factor

7. Power: They established their own captive power plant

8. Plant locations: In backward and rural areas - To take advantage of substantial

sales tax and income tax, incentives.

9. Partnership with Holcim

10. Access to Holcim¶s best practices in areas such as waste heat recovery, use
of alternative fuels, human resources and Information technology

11. Opening of new cement trading opportunities in Middle East and Indian
Ocean

4
        
 

(a) 4
 


I. Hub and spoke network of clinkerisation plants and grinding units
II.  Strong distribution network
III.  Innovative logistics solutionslike bulk cement movement by sea.
IV. Computerized process control system
V.  Increased capacity utilization ±started weekly checking for faults
VI.  Run plant continuously for 40 days against industry average of five

(b) =  

I. Closer to mines, grinding units and power supply ± ensure easier inbound
and outbound material flow, at cheaper power. E.g. H.P. Plant
II. In smaller, rural regions to avail tax benefits. E.g. Chandrapur Plant - sales
III. Tax benefit & close to coal mines

(c) !

"

 

I.  Captivepower plants
II. Use of alternative sources of fuel

All the aspects enunciated above, reflects the operations excellence of GACL, which
makes it a truly world class company.
c
# It is far easier to achieve WCM status in a continuous process plant
than in a mass production organization, such as automobile manufacturer. Comment



 Yes, it is easier to achieve WCM status in a continuous process plant
than in a mass production organization . It is evident that to become a world class
company, it has to bring out a revolutionary change in the strategic process that's
woven into its business planning, decision -making and organization-wide priorities.
This all can take place by effective commu nication - by encouraging dialogue,
feedback, interpretation and understanding.

A mass production organisation has various partners in the business process, on

whom the company is heavily dependent and vice versa, like suppliers, vendors,
logistics partners etc.

To become a WCM company, the process of change has to be incorporated into all
the business/ channel partners, through effective communication, which according to
me is a difficult task, may be due to difference in priorities or policies.

On the contrary if it is a continuous process plant, in which all the operations actions
are interdependent, implementing changes and strategising, changes is a bit easier,
since the parties involved are not large, and the benefits accruing due to WCM will
be visible and be shared by the members, which acts as a motivator.

WCM status, is not possible without the support of the top management. In the case
of mass production organization, due to various parties being involved, it may not get
the required impetus from top management.

More ever the process of transition from an ordinary company to a WCM is time
taking, in which case many of the conglomerates of mass production organisation
may not stay or be present to see the light of the day .


c
$ Comment on the efforts by Gujarat Ambuja to develop people and
partners ?



 GACL, has involved , trained and developed its human resource to
meet the growing challenges, following were the initiatives taken by GACL in this
field :-

(a) Good industrial relations

(b)  Launchof µPeople Power¶ at Ambujanagar plant: "Healthy People and

HealthyPlants"; enhance managerial and innovation skills

(c) A process-driven approach to induction of fresh talent; ensure a

continuous and consistent talent pipeline for future business growth.

(d)  Projects
like SAP implementation to encourage an inter -disciplinary
approach to business challenges.

 =
"
 
% &

(a) Large sales force works alongside these small dealers to help them
promote and sell the brand to the right consumer at the right price.

(b) Expert civil engineers work closely with small contractors and local
communities to demonstrate better construction practices and
materials and materials, build economical and durable structures ±
housing and also rural infrastructure, like check dams, schools and
roads.

(c) Partnership with Holcim - for expertise in RMC(ready mixed concrete)

manufacturing
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