Gujarat Ambuja Cement Ltd, (GACL) was established in Gujarat

The major cost components of cement were fuel (20%), freight and raw materials (17%each) and
power (16%), with other components accounting for the balance (30%)

Enhancing productivity:

GACL worked hard to reduce mining expenses. Cement companies normally operate their own
limestone mines. Mines were highly destructive and expensive to operate. To reduce the noise
and vibration that occurred during the conventional drilling, blasting and crushing process. You
have to make sure that the reactivity is such in the burning zone that whatever you burn is
converted into clinker minerals this depends on the burning process. Inadequate heating yielded
inferior quality cement and over cooking made the clinker harder to grind.

PROCESS:

The raw materials for cement production, limestone, clay, silica and gypsum are fed into a kiln
after grinding and blending. The mixture is heated at 1300-1400 degrees for some time. After
dehydration and calcinations a dark and hard material is obtained which is called clinker. This
intermediate material is further processed with additional chemicals and materials and eventually
ground into cement.

CUTTING COSTS

Power: Accounted for a large part of GACL’s cost of production.

Fuel: Coal is an important source of energy foe the cement industry.

Freight: Road transport was very costly and rail transport was not feasible so they thought for

using the sea transport.