HISTORY

Introduction:The cement industry is experiencing a boom on account of the overall growth of the Indian economy. The demand for cement, being a derived demand, depends primarily on the industrial activity, real estate business, construction activity, and investment in the infrastructure sector. India is experiencing growth on all these fronts and hence the cement market is flourishing like never before. Indian cement industry is globally competitive because the industry has witnessed healthy trends such as cost control and continuous technology up gradation. Global rating agency, Fitch Ratings, has commented that cement demand in India is expected to grow at !" annually in the medium term buoyed by housing, infrastructure and corporate capital expenditures.

History:The attempt to produce cement in India dates back to ##$ when a %alcutta firm attempted to produce cement from &rgillaceous 'kankar(. )ut the first organi*ed effort on mass scale to manufacture +ortland cement commenced in ,adras '-ashermanpet(, in $!., by /outh India Industries 0imited '%ement ,anufacturers &ssociation $1.2 Gadhok 3!!!(. The factory could not succeed hence it failed. In $ . the first commissioned cement4manufacturing unit in India was set up by India %ement %ompany 0imited at +orbandar, Gu5arat, with an installed capacity of !,!!! tonnes and production of !!! tonnes. /ubse6uently two plants2 one at 7atni ',.+.( and another at 0akheri 'Ra5asthan( were set up. The First -orld -ar gave positive stimulus to the infant industry. The following decades saw increase in number of plants, installed capacity and production. This period can thus be called the 8ascent /tage of Indian cement industry. The problem of supply outstripping demand was significant in early period of the industry. +roblem of disposal of cement was aggravated by the pre5udice with which indigenous cement was regarded. This was followed by a price war between the producers where they resorted to cutting down of prices and selling at below production cost. This situation forced many companies into li6uidation. It was then when the government of India intervened into the market and referred the cement industry to the Tariff )oard. The board recommended protection by government and cooperation among existing cement units. &ll these events resulted in formation of Indian %ement ,anufacturers9 &ssociation in $3: whose main function was to regulate prices in the industry. In $3;, %oncrete &ssociation of India was formed whose two main ob5ectives were to educate public about the use of cement and to play an active role in populari*ing Indian cement. The next step in the direction of rescuing cement industry was the formation of %ement ,arketing %ompany of India 0imited in $<! to promote and control the sale and distribution of

cement at regulated prices. &fter all these initiatives, the sales increased along with more plants. In $<1, eleven companies, except /one =alley +ortland %ement %ompany 0imited, merged to form &ssociated %ement %ompany 0imited '&%%(. In $<;, >almiya ?ain Group set up five factories with installed capacity of :;:!!! tonnes and &%% added four more plants. -ith all these expansions, price war again started off which resulted into a significant decrease in prices. )ut in the post world war period, setting up of >epartment of +lanning and independence of the country provided fresh impetus to the industry. The price and distribution control system on cement, implemented in $:1, aimed at ensuring fair prices to producers and consumers all over the country, thus reducing regional imbalances, and at reaching self4sufficiency within a short time period. &lthough due to slow growth in capacity expansion and rising cost in the industry, the government had to increase the fixed price several times. @owever, these price increases as well as financial incentives to enhance investment, showed little effect on the industry. In spite of the fact that government exercised no control over the Indian cement industry all through the Third Five Aear +lan ' $1 4 $1;(, growth was low due to inade6uate retention price and lack of ade6uate financial resources to the existing companies.

CHAPTER 2 INDUSTRY PROFILE

INDUSTRY PROFILE

Indian C ! nt Industry
An O" r"i # . Indian cement industry dates back to $ . 4 first unit was set4up at +orbandar, with a capacity of !!! tonnes. 3. %urrently India is ranked second in the world with an installed capacity of ,illion tonnes. Industry estimated at around Rs. #,!!! crores 'B/ C . #: mn(. <. %urrent per capita consumption 4 #: kgs, as against world standard of 3:1 kgs. .. %ement grade limestone in the country reported to be #$ bt. & large proportion however is unexploitable. :. :: 4 1!" of the cost of production are government controlled 1. %ement sales primarily through a distribution channel. )ulk sales account for D " of the total cement produced. ;. Ready mix concrete a relatively nascent market in India %ement Industry has grown much in last ten years. This sector has recorded a %&GR of #", against the world cement industry average of <.:" and %hina9s cement industry growth rate of ;.3". Today cement industry has become the second largest cement producer in the world after %hina. >omestic cement demand growth has surpassed the economic growth rate for the past three years. %ement demand in the country grows at roughly .: times the G>+ growth rate. The industry had a turnover of around B/C ;.# billion in 3!!<4!. The key drivers for cement demand are real estate sector, infrastructure and industry expansion pro5ects. &mong these real estate sector is the key driver of cement demand. The demand for cement is closely related to the growth in the construction sector. %onse6uently, cement demand has been posting a healthy growth rate of around # per cent since $$;4$#, %ement is bulky commodity and cannot be easily transported over long distances making it a regional market place, with the nation being divided into five regions. Each region is characteri*ed by its own demand4supply dynamics. Fver the past few years the cost of cement production has grown at a %&GR of #..". ..3

The government has considered spending more than B/ C:!! billion on infrastructure in the th five year plan. &part from this railways, urban infrastructure, ports, airports, IT sector, organi*ed retailing, malls and multiplexes will be the main sectors driving the demand of cement in the country. Pr Ind $ nd nc The first endeavor to manufacture cement dates back to ##$ when a %alcutta based company endeavored to manufacture cement from &rgillaceous 'kankar(. )ut the first endeavor to manufacture cement in an organi*ed way commenced in ,adras. /outh India Industries 0imited began manufacture of +ortland cement in $!..)ut the effort did not succeed and the company had to halt production. In $ . that the first licensed cement manufacturing unit was set up by India %ement %ompany 0td at +orbandar, Gu5arat with an available capacity of !,!!! tons and production of !!! installed. The First -orld -ar gave the impetus to the cement industry still in its initial stages. The following decade saw tremendous progress in terms of manufacturing units, installed capacity and production. This phase is also referred to as the 8ascent /tage of Indian %ement Industry. Post-Ind $ nd nc The growth rate of cement was slow around the period after independence due to various factors like low prices, slow growth in additional capacity and rising cost. The government intervened several times to boost the industry, by increasing prices and providing financial incentives. In $:1, the price and distribution control system was set up to ensure fair prices for both the manufacturers and consumers across the country and to reduce regional imbalances and reach self4sufficiency. P riod o% R striction &'()(-'(*2+ The cement industry in India was severely restrained by the government during this period. Government hold over the industry was through both direct and indirect means. In $;; the government authori*ed higher prices for cement manufactured by new units or through capacity increase in existing units. )ut still the growth rate was below par. In $;$ the government introduced a three tier price system. +rices were different for cement produced in low, medium and high cost plants. Rise in input cost, reduced profit margins meant the manufacturers could not allocate funds for increase in capacity. Partia, Contro, &'(*2-'(*(+ The Government of India introduced a 6uota system in $#3. & 6uota of 11.1!" was imposed for sales to Government and small real estate developers. For new units and sick units a lower 6uota at :!" was affected. The remaining <<..!" was allowed to be sold in the open market. These changes had a desired effect on the industry. +rofitability of the manufacturers increased substantially, but the rising input cost was a cause for concern. Post Li- ra,i.ation

In $#$ the cement industry was given complete freedom, to gear it up to meet the challenges of free market competition due to the impending policy of liberali*ation. In $$ the industry was de licensed. %ement is one of the core industries which plays a vital role in the growth and expansion of a nation. It is basically a mixture of compounds, consisting mainly of silicates and aluminates of calcium, formed out of calcium oxide, silica, aluminum oxide and iron oxide. The demand for cement depends primarily on the pace of activities in the business, financial, real estate and infrastructure sectors of the economy. Indian cement industry is globally competitive because the industry has witnessed healthy trends such as cost control and continuous technology up gradation.

/ y Dri" rs o% C ! nt Industry )uoyant real estate market

Increase in infrastructure spending =arious governmental programs like 8ational Rural Employment Guarantee 0ow4cost housing in urban and rural areas under schemes like ?awaharlal 8ehru 8ational Brban Renewal ,ission '?88BR,( and Indira &awas Ao5ana

Consu!$tion 0ro#t1 durin2 233*-3( Even during the economic slowdown in 3!!#4!$, growth in cement demand remained at a healthy #..". In the current fiscal '3!!$4 !( cement consumption has shot up, reporting, on an average, 3.:" growth in consumption during the first eight months with the growth being aided by strong infrastructure spending, especially from the govt sector. The trends in all4India consumption and the growth in consumption in the ma5or cement4 consuming /tates over the last five years are presented in below tableG Growth in %ement >emand Fi2ur s in 4i,,ion Ton s 233*-3( Do! stic Consu!$tion Y ar-on-Y ar 0ro#t1 &5+ ;# #.. A$r-No" 3( !! 3.:

/EY ISSUES AND CURRENT TRENDS IN CE4ENT INDUSTRY /EY ISSUES R sid ntia, s 2! nt 4 The main application areas are repair works, white cement based tiles and paints, white cement to bridge the gap between tiles and make floorings. Co!! rcia, s 2! nt H The main application areas in this segment are the same as in the residential segment. Industria, s 2! nt H The main application areas in this segment are white cement based tiles, floorings and pavers in the officeI factory premises. -hite cement based paints are also used extensively by this segment for the exteriors of the buildings. -hite cement based flooring is getting increasingly popular in industrial establishments as it gives the desired aesthetics while being less expensive than most tiles. Pu-,ic -ui,din2s H Extensive use of white cement is yet to be seen in public buildings. The main application areas are the same as those in the industrial segment. The Residential and %ommercial segment is envisaged to consume around ;!" of the total white cement consumption in India, followed by the Industrial and +ublic buildings segment. The main drivers for each of these segments are the need for aesthetics and lower price. The usage of white cement in pre4fabrication works and even architectural works is low. Thus, there are no R,% producers who supply white concrete.

INTRODUCTION
61at is c ! nt7 %ement is a mixture of limestone, %lay, /ilica and Gypsum. It is a fine powder which when mixed with water sets to a hard mass as a result of hydration of the constituent compounds. It is the most commonly used construction material. %ement is manufactured by burning a mixture of limestone and %lay at high temperatures in a kiln, and then finely grinding the resulting clinker along with Gypsum. The end product thus obtained is called Frdinary +ortland %ement 'F+%(. DIFFERENT TYPES OF CE4ENT There are different varieties of cement based on different compositions according to specific end uses namely Frdinary +ortland %ement, +ortland +o*olona %ement, +ortland )last Furnace /lag %ement, -hite %ement and /peciali*ed %ement. The basic difference lies in the percentage of clinker used. Ordinary Port,and C ! nt &OPC+ F+%, popularly known as 2r y c ! nt, has $:" clinker and :" of gypsum and other materials. It accounts for ;!" of the total consumption. -hite cement is a variation of F+% and is used for decorative purposes like rendering of walls, flooring etc. It contains a very low proportion of iron oxide. Port,and Po.o,ona C ! nt &PPC+ ++% has #!" clinker, :" +o*olona and :" gypsum and accounts for #" of the total cement consumption. +o*olona has siliceous and aluminous materials that do not possess cementing properties but develop these properties in the presence of water. It is cheaply manufactured because it uses fly ashIburnt clayIcoal waste as the main ingredient. It has a lower heat of hydration, which helps in preventing cracks where large volumes are being cast. Port,and 8,ast Furnac S,a2 C ! nt &P8FSC+ +)F/% consists of .:" clinker, :!" blast furnace slag and :" gypsum and accounts for !" of the total cement consumed. It has a heat of hydration even

lower than ++% and is generally used in construction of dams and similar massive constructions. 61it C ! nt F+%G clinker using fuel oil 'instead of coal( and with iron oxide content below !.." to ensure whiteness. /pecial cooling techni6ue is used. It is used to enhance aesthetic value, in tiles and for flooring. -hite cement is much more expensive than grey cement. S$ cia,i. d C ! nt Fil -ell %ementG is made from clinker with special additives to prevent any porosity. Rapid @ardening +ortland cementG It is similar to F+%, except that it is ground much finer, so that on casting, the compressible strength increases rapidly. -ater +roof %ementG F+%, with small portion of calcium stearate or non4 saponifibale oil to impart waterproofing properties. 4a9or P,ay rs in Indian C ! nt Industry There are a number of players prevailing in the cement industry in India. @owever, there are around 3! big names that account for more than ;!" of the total cement production in India. The total installed capacity is distributed over around 3$ plants, owned by :. ma5or companies across the nation. Ta-, 2 Fo,,o#in2 ar so! o% t1 !a9or na! s in t1 Indian c ! nt industry: Co!$any &%% Gu5arat &mbu5a Bltratech Grasim India %ements ?7 Group ?aypee Group Production ;,$!3 :,!$. <,;!; .,1.$ #,.<. 1, ;. 1,< 1 Insta,, d Ca$acity #,1.! .,#1! ;,!!! ., #,# ! 1,1#! 1,:< :

)irla %orp.

:, :!

:,

<

Source: Cement Manufacturers' Association . Evolution of the Indian Cement Industry: The story of the evolution of the Indian cement industry is rather long, where it has seen many ups and downs, but finally has arrived in its maturity stage as it is beginning to gather the benefits of its decontrol by the government in 1989-90.

STRUCTURE OF THE INDIAN CE4ENT INDUSTRY ': It is a fragmented industry. There are :1 cement companies in India, operating 3.large and <!! mini plants, where ma5ority of the production of cement '$."( in the country is by large plants. 2: Fne of the other defining features of the Indian cement industry is that the location of limestone reserves in select states has resulted in it is evolving in the form of clusters. ; :/ince cement is a high bulk and low value commodity, competition is also locali*ed because the cost of transportation of cement to distant markets often results in the product being uncompetitive in those markets. <: &nother distinguishing characteristic comes from it being cyclical in nature as the market and consumption is closely linked to the economic and climatic cycles. In India, cement production is normally at its peak in the month of ,arch while it is at its lowest in the month of &ugust and /eptember. The cyclical nature of this industry has meant that only large players are able to withstand the downturn in demand due to their economies of scale, operational efficiencies, centrally controlled distribution systems and geographical diversification.

STRUCTURE OF THE INDIAN CE4ENT INDUSTRY ': It is a fragmented industry. There are :1 cement companies in India, operating 3.large and <!! mini plants, where ma5ority of the production of cement '$."( in the country is by large plants. 2: Fne of the other defining features of the Indian cement industry is that the location of limestone reserves in select states has resulted in it is evolving in the form of clusters. ; :/ince cement is a high bulk and low value commodity, competition is also locali*ed because the cost of transportation of cement to distant markets often results in the product being uncompetitive in those markets. <: &nother distinguishing characteristic comes from it being cyclical in nature as the market and consumption is closely linked to the economic and climatic cycles. In India, cement production is normally at its peak in the month of ,arch while it is at its lowest in the month of &ugust and /eptember. The cyclical nature of this industry has meant that only large players are able to withstand the downturn in demand due to their economies of scale, operational efficiencies, centrally controlled distribution systems and geographical diversification.

%hapter4 < %ompany profile

A48U=A CE4ENT History: &mbu5a %ements 0imited is one of the leading cement manufacturing companies in India. It was founded by 8arotam /ekhsaria and /uresh 8eotia in $#<. It was previously known as Gu5arat &mbu5a %ements 0td. Bnder 8arotam /ekhsaria business acumen and leadership skills the company registered good growth rate. The company commenced cement production in $#1. The global cement ma5or @olcim ac6uired management control of &%0 in 3!!1. @olcim holds a little over .1" e6uity in &%0. It has a capacity of 3: million tonnes from its five integrated cement manufacturing plants and eight cement grinding units from across the country Its environment protection measures are on par with global standards. It is the first cement company to built < captive ports along the west coast of India to facilitate timely, cost effective and environmentally cleaner shipments of bulk cement to its customers

. !" has grown dynamically over the past decade. Its current cement capacity is about #$.#% million tonnes. The !ompany has five integrated cement manufacturing plants and eight cement grinding units across the country. !" en&oys 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. !" is the first Indian cement manufacturers to build a captive port with three terminals along the country's western coastline to facilitate timely, cost effective and environmentally cleaner shipments of bul( cement to its customers. The !ompany has its own fleet of ships. !" has also pioneered the development of the multiple bio-mass co-fired technology for generating greener power in its captive plants. !" has always met tough challenges and sei)ed 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 benchmar( for the cement industry in India. A!-u9a C ! nts Li!it d was set up in the late #!s. The cement industry presented an opportunity of steady growth and ethical competition to the promoters. Today, &mbu5a is the < rd largest cement company in India, with an annual plant capacity of 1 million tonnes including &mbu5a %ement Eastern 0td. and revenue in excess of Rs.<3$# crores.

A!-u9a C ! nt ,td>

First plant set up in record time

*hen mbu&a set up its first plant in 198+, the accepted time period for installing a plant was , years. mbu&a, did it in less than # years. e-penditure. nd with a significantly lower capital

In 199, the company went a step further and bettered its own record. mbu&a.s second plant was installed in a mere 1, months - the /uic(est time for setting up a one million tonne cement plant. S,o2an: *ith 01iraat !ompressive 2trength3 as their tagline mbu&a !ements "imited the company appeals to its target consumers as the strongest cement available in the mar(et. ?ISION AND 4ISSION

?ISION STATE4ENT- To be the most admired and competitive industry in our industry

4ISSION STATE4ENT- >elighted %ustomers

Inspired Employees Enlightened +artners Enriched /ociety 0oyal /hareholders @ealthy Environment

4a9or 4i, ston s:

Y ar
$#1

Actions
First cement manufacturing plant set up at &mbu5anagar, Gu5arat worth !.; million tonnes capacity commences production. Bndertook the =an4=ihar pro5ect to convert a mined area into an environmentally restored and scenic location. /etting up plants at &mbu5anagar, Gu5arat and at /uli, @imachal +radesh. &lso the company 7odinar Taluka under its %/R initiative

$##

$$3

$$1

&chieves highest ever export by any Indian %ement %ompany.

/etting up of power plants at Gu5arat and @imachal +radesh. $$;

%ement plant set up in /ri 0anka. $$$ 3!!3 3!!; 3!!# 3! Fver !!" capacity utilisation achieved at %handrapur +lant. %hairman /uresh 8eotia is awarded with +adma )hushan. %orporate communications department set up. &chieves water4positive status, as certified independent foundation, >et 8orske =eritas. by an

 E@ cuti" 4ana2 ! nt T a!

,r. Fnne van der -ei5de, ,anaging >irector ,r. ).0. Taparia, %ompany /ecretary J %orporate /ustainability Ffficer ,r. /an5eev %huriwala, %FF ,r. Ghassan )roummana, @ead 4 Technical /upport /ervices ,r. /.8. Toshniwal 4 )usiness @ead 'East( ,r. ?.%. Toshniwal 4 )usiness @ead '8orth( ,r. &5ay 7apur 4 )usiness @ead '-est J /outh( ,s. ,eenakshi 8arain 4 ?oint +resident '@R( ,r. /hakti &rora, @ead 4 %entral +urchase Ffficer

R 2ist r d O%%ic s Cor$orat O%%ic

Elegant )usiness +ark, ,I>% %ross Road K)K, Fff &ndheri47urla Road. &ndheri 'E(, ,umbai .!!!:$ TelG !33 H .!11;!!!

6 st and Sout1
+o. &mbu5a 8agar, Tal. 7odinar, >ist. ?unagadh, Gu5arat 4 <13; : Tel G !3;$: 4 3<;!!! I 33!3 . I 33 .$ )ehind L )erth, ,attancherry -harf, -illingdon Island, %ochin4 1#3!!< Tel G !.#. 4 3 #: ! I 1.:<3<;

Nort1
,alout Road, 8ear Guru 8anak >ev Thermal +lant, )athinda 4 : !!3, +un5ab Tel G ! 1. 4 33;<.#; I 33;<#:! I :

East
+FG Rawan, TehsilG )aloda )a*ar, >ist. Raipur .$< << , %hhattisgarh. Tel G !;;3; 4 33!! ! H :

E@ cuti" 4ana2 ! nt T a!
,r. Fnne van der -ei5de, ,anaging >irector ,r. &5ay 7apur, >eputy ,> J %EF ,r. /an5eev %huriwala, %hief Financial Ffficer ,r. =ilas >eshmukh 4 )usiness @ead '-J/( ,r. ?.%. Toshniwal 4 )usiness @ead '8orth( ,r. =ivek &gnihotri 4 )usiness @ead 'East( ,r. ?ac6ues van 8iekerk, @ead /upply %hain ,r. /an5ay Gupta 4 @ead ',arketing J %ommercial /ervices( ,rs. ,eenakshi 8arain 4 ?oint +resident '@R( ,r. @enning /asse, @ead 4 T// ,r. Ran5an /achdeva, @ead 4 %+F

Management Philosophy
mbu&a !ements entered the cement business with the driving conviction that challenges are there to be met and opportunities are meant to be sei)ed. s the 4avid among the established 5oliaths, it saw a way to put the competition at a disadvantage-and that was to achieve ma-imum efficiency and productivity at the lowest cost. !ost per tonne of cement had to be the lowest. 6lants had to be set up in record time. !apacity utilisation had to be above 1007. 6ower consumption had to achieve a record low. In short, the !ompany had to emerge unbeatable on all (ey parameters.

5iven this line of thin(ing, empowerment was not &ust a fashionable term, it was the only way to achieve our goals. It is a natural corollary to this approach that responsibility and empowerment go hand in hand down the line. 8ngineers were given greater decision-ma(ing powers. They (now their plants, their capacities and, more importantly, the capacities of their people when motivated. In plants, in offices, on the shop floor, people ta(e charge. impossible goals begin to be achieved. nd

9rom this has emerged a strong company culture, encapsulated in two words: I ! ;. The I CAN Rationale

The <I !an' spirit signifies that each person contributes his potential to achieve the goal. It does not mean that he is the only one responsible for the achievement of the goal. 9or e-ample a person wor(ing under an engineer in a plant has a right to give a suggestion which if worthwhile is appreciated by the person above him and then the whole team wor(s together to achieve the goal This process of tapping individual initiative for team synergy is at the heart of the culture nurtured over the years Give a man orders and he will do the task reasonably well. But let him set his own targets, give him freedom and authority and his task becomes a personal mission: I Can.

Infrastructure
=ver #%-,07 of the production cost of cement is power. It /uic(ly became clear to us that if we were to run an iconic company, we needed to (eep power costs to the minimum. 2o we focused our efforts on improving efficiency at our (ilns to get more output for less power.

;e-t we set up a captive power plant at a substantially lower cost than the national grid. *e sourced higher /uality coal from 2outh frica and better furnace oil from the >iddle 8ast.

t every step we found that new and innovative solutions could be found if we (ept an open mind. The result is that today we are not only self-sufficient but are in a position to sell e-cess power capacity to the local state government. =ur sea-borne bul( cement transportation facilities have meanwhile brought many coastal mar(ets ?domestic as well as e-port mar(ets@ within easy reach. This has been a major factor in making mbuja Cement India!s largest e"porter of cement # consistently for the last fifteen years$ It can be doneA Port Terminal Muld%arka& 'ujarat: ll %eather port& ( kms from our mbujanagar plant$ )andles ships %ith *+&+++ ,-T$ Is also e.uipped to e"port clinker and cement and import coal and furnace oil$ fleet of seven ships with a capacity of #0%00 4*T ferries bul( cement to the pac(aging units. Bulk Cement Terminal /urat : Bul( !ement Terminal with a storage capacity of 1%,000 tonnes has bul( cement unloading facility. 5rinding unit has also become fully operational at this location. Panvel : 2trategically located near India.s biggest cement mar(et, has a storage capacity of 1$,%00 tonnes and a bul( cement unloading facility.

Cochin : The latest addition to our configuration of Bul( !ement Terminal

Cr dit Ratin2s Curr nt y ar Ratin2 A2 ncy Ratin2 For %RI/I0 %RI/I0 )ank 0oan Rating /hort Term Rating Rat d A!ount&INR 4n+ #,!!! 'Enahanced fromRs :,!!!,illion ( ,!!! Ratin2 &&&I/table 'Reaffirmed( & M 'Reaffirmed(

S6OT ANALYSIS OF A48U=A CE4ENT

Str n2t1 Growth at approx. %&GR of $" in last : years Growing >omestic cement consumption at approx. %&GR of #" in last < years @ighly %apital Incentive so difficult for small entrant 8ot much restriction by govt. ,arket consolidation taking place

6 aAn ss @igh Fil +rices, %ost of +ower increase production cost /upply exceeds +roduction lead to competition in price 0ow Luality as compared to international standard but improving

O$$ortunity @igh ,ortgage +enetration 40ow Interest Rates Easy loan availability for housing finance

Increased investments in Infrastructure Increased govt. outlay on )@&R&T8IR,&8, GF0>E8 LB&>RI0&TER&0, and )RT/ etc.

T1r at Further @ike in Fil +rices Bse of plastic engineering in construction /ubprime market loss may affect

0k$ 1 "/)MI CEME2T 1td$ )istory 03 1akshmi Cement, member of the CD =rganisation is a blue chip cement company operating in India. "aunched in 198#, "a(shmi !ement, an I2=9001:#000 company, is built over an area of about 8 s/uare (ilometers at Ca(aypuram in the 2irohi 4istrict of Ea&asthan ?#F.+90G; $,.00,G8@. It is a public company listed on the Bombay 2toc( 8-change. s one of the large manufacturers in the Indian cement industry, CD "a(shmi !ement has ac/uired the ultra modern e/uipment from 9uller International of the Hnited 2tates of merica, and electronic pac(ers from 1entomatic in Italy. The annual installed plant capacity was ,.F million tonnes per annum in #00$, but was being e-panded to % million tonnes per annum during #008 !hronicle of the company thus began in the state of Ea&asthan during the year 19,8. =ne of the established names in the cement industry, CD "a(shmi !ement ?CD"!@ "td has state-of-the-art plant at Cay(aypuram,

district of 2irohi, Ea&asthan having an annual capacity of ,.+% million tonnes. *ith the use of the latest technology from >Is Blue !ircle Industries and modern e/uipments from >Is 9uller International of H2 , the company going from strength to strength and produce CD "a(shmi !ement, CD "a(shmi plast and CD "a(shmi 6ower >i-. It is also the first cement producer of ;orthern India to be awarded an I2= 900# certificate and be accredited by ; B" ?4epartment of 2cience J Technology, 5overnment of India@ for its "ab Kuality >anagement systems. 4uring the year 199,-9F, the company had received an I2= 900# certificate. The !ompany name was changed to C.D !orp "imited from 2traw 6roducts "td in #Fth 9ebruary of the year 199% and also in the same year entered into >ulti 6roduct !orporation >anufacturing 6aper, !ement, and >agnetic Tape. In the year 1998, the company introduced a new brand "a(shmi !hattan. The !ompany during the year has bagged the prestigious 5reentech 2afety 5olden 6eacoc( ;ational ward #00,-0F for 2afety and 8nvironment from the 5reentech 9oundation and the ward for 8nvironment >anagement 2ystem from the *orld 8nvironment 9oundation. 4uring the year #00F-#00%, the company had e-ited from >agnetic Tape business and in the same year, the company changed its brand name from "a(shmi !ement into CD "a(shmi !ement. The !ompany during the year #00F-0% commenced mar(eting of Eeady >i-ed !oncrete ?E>!@ from 5urgaon based plant under the brand name CD "a(shmi Eeady >i- !oncrete. The !ompany name was changed to CD "a(shmi !ement "imited with effect from +th =ctober of the year #00%. The !ompany.s 2cheme of de-merging its Investment 4ivision to another company had been completed in the year #00%-0+. The 2cheme of Eeconstruction, rrangement and 4emerger between CD"! and shim Investment !ompany "imited ? I!"@ had become effective from ,1st >arch of the year #00+. CD "a(shmi !ement "imited was declared a winner of the

5olden 6eacoc( #00$.

ward for !orporate 2ocial Eesponsibility for the year

CO4PANY HISTORY A8OUT =/ LABSH4I

?.7. %ement is an affiliate of the ?.7. Frgani*ation, which was founded by 0ala 7amlapat /inghania. The ?.7. Frgani*ation is an association of industrial and commercial companies and has operations in a broad number of industries. ?7s cement operations commenced commercial production in ,ay $;: at their first plant at 8imbahera in the state of Ra5asthan. &t 8imbahera, company started with a single kiln with a production capacity of !.< million tons. They added a second kiln in $;$ with production capacity of !..3 million tons, and a third kiln in $#3 with a production capacity of !..3 million tons. Then a precalciner with a capacity of !.. million tons was added in $##, which increased company9s capacity at 8imbahera to .:. million tons. >uring the years $$# through 3!!<, ?7 continued to implement modifications to each of their kilns, which increased aggregate capacity at 8imbahera to 3.# million tons as of /eptember <!, 3!!:. ?7 commissioned a second grey cement plant at ,angrol plant in 3!! , with a production capacity of !.;: million tons. &s of /eptember <!, 3!!:, they had an aggregate production capacity of <.:: million tons per annum of grey cement. -hite cement plant was completed in $#. with a capacity of :!,!!! tons, and continuous modifications to the plant have increased its production capacity to <!!,!!! tons as of /eptember <!, 3!!:. The pillars for ?.7.-hite %ement ar Dr: 0aur1ari Sin21ania &C1air!an+ C 4r: Yadu$ati Sin21ania &4ana2in2 Dir ctor+: Curr nt,y 4r:8:/:Arora is $r sid nt o% 6orAs C 4r: ?:P: Sin21 is Pr sid ntD 4arA tin2:

Today, ?. 7. %ement 0td. is one of the largest cement manufacturers in 8orthern India. &nd is also the second largest white cement manufacturer in India by production capacity. -hile the grey cement is primarily sold in the northern India market, the white cement en5oys demand in the export market including countries like /outh &frica, 8igeria, /ingapore, )ahrain, )angladesh, /ri 0anka, 7enya, Tan*ania, B&E and 8epal. Fur access to high 6uality limestone reserves that are suitable for production of white cement provides us with a competitive advantage. )ased on geological surveys conducted by independent agencies on our mines between $$1 and 3!! , our limestone reserves for both grey and white cement are expected to meet our existing and planned limestone re6uirements of ..! ,nT+& of grey cement and !.. ,nT+& of white cement, for approximately .! years. )acked by state4of4the4art technology and highly skilled manpower against the backdrop of India9s infrastructural growth in an overdrive, we are upbeat about the future. -e are confident of contributing heavily in India9s 5ourney of development. -e see a world of concrete ideas on the hori*on. In India ?.7. -hite %ement -orks is the first company to introduce white cement manufacturing with expert J modern dry process technology in .th &ugust $#. with the technical collaboration of ,Is. F.0. /mith, >enmark. Fur plant is first in &sia who adopts N4Ray &naly*er Fu**y 0ogic /ystem for 6uality control. ?.7. -hite %ement -orks is located at GFT&8, >istrict4 8agpur, and Ra5asthan. Gotan is situated around #. km east of ?odhpur J :. km west from >elhi and connecte.d by broad gauge railway line. ?odhpur is the nearest airport from Gotan. ?.7.-hite %ement -orks has ac6uired I/F4$!!3 since >ecember $$<, which has been revised to $!! G3!!!. -orks also ac6uires I/F4 .!! J /&4#!!! RI8&.

4ANA0E4ENT PHILOSOPHY %ustomer /atisfaction &lways invest in 0atest Technology

@uge >istribution 8etwork %reation Expansion through )alancing E6uipment %onstant focus on %ost %ontrol J Luality Invest in ,anagers J >evelop +eople /kills /tability of Executive ,anagement J 0ow Employee turnover /ocial -elfare 4 & +riority

4ision
6rofitably growing innovative and !aring !ompany, Industry spiring to

4ouble the mar(et share and Be among top $ in the Indian !ement

Mission

>ouble /ales every . years, +rofit every : years &chieve Fperational Excellence %reate superior value for customer through +remium +roducts J )rand +ositioning )e a workplace of choice4&ttract, Retain and grow Talent +ool %ontinuously enhance shareholders9 wealth and be a preferred portfolio among investors /ocially Responsible %orporate >ecision

Sr: No 3 < . : 1 ; ; # $ !

Na! =inita /inghania )harat @ari /inghania Raghupati /inghania 7 8 ,emani /hailendra %houksey ) = )hargava 8 G 7haitan Ra5 7umar )ansal +radeep >inodia / 7 -ali )ri5esh 7 >aga Ravi ?hun5hunwala

D si2nation ,anaging >irector =ice %hairman J ,.>. >irector >irector -hole4time >irector >irector >irector 8ominee 'I>)I( >irector -hole4time >irector %ompany /ecretary &dditional >irector

S,o2an: 4
-ith their tag line O>eewarien )ol BthengiP ?7 %ement 0imited emphasi*es on their 6uality and customer satisfaction.

23'2

,otilal Fswal /ecurities 0td. was awarded amongst the top 3! innovators

No" !- r in )F/I space for O0everaging on Technology in enhancing customer

experienceP at )anking Frontiers Finnovity &wards 3! 3 held on #th 8ovember 3! 3 in ,umbai. ,otilal Fswal /ecurities 0td. was the only %apital ,arkets player 'other than 8/E0( in the segment.

A$ri,

,otilal Fswal /ecurities bagged the )est E6uity )roker &ward at )loomberg BT= Financial 0eadership &ward 3! 3 held in ,umbai on &pril ;, 3! 3. The award was presented by our @onorable Finance ,inister, ,r. +ranab ,ukher5ee.

% -rury

,otilal Fswal Financial /ervices won the RET&I0ER FF T@E AE&R ')anking J Financial /ervices( award at the &wards for Retail Excellence 3! 3 organised by &sia Retail %ongress on Feb ., 3! 3.

23''

D c !- r The 1th ,otilal Fswal -ealth %reation /tudy presentation was held in
,umbai on $th >ecember 3! and was covered live on ET 8ow.

Octo- r

,otilal Fswal /ecurities was awarded Q)est E6uity )roking @ouse9 at Q)/E I+F4>J) E6uity )roking &wards 3! 9 on Fctober !, 3! .

=u,y

,otilal Fswal in association with Ree )usiness, hosted the first of its series of seminars under its investors education initiative called Investor 7i 7ahani Bsi 7i Rubani on ?uly 3, 3! at )/E in ,umbai. The seminar saw a colossal turnout with more than ;:! investors attending the session.

23'3

S $t !- r ,otilal Fswal /ecurities entered into a strategic alliance with )arclays

)ank, for an e6uity trading platform for its ')arclays( customers. This alliance provides )arclays customers with the option to invest in e6uities, derivatives and I+Fs, through ,F/0.

S $t !- r
,otilal Fswal /ecurities bagged the )est +erforming E6uity )roker '8ational( &ward at %8)% T= # Financial &dvisor &wards 3! ! held in ,umbai. %8)% T= # organised Financial &dvisor &wards 3! !, in partnership with BTI ,F. These awards are authoritative evaluation backed by a robust methodology powered by India9s leading rating house, I%R&.

3!!$

=anuary

,otilal Fswal /ecurities 0td. enters S0imca )ook of RecordsS for creating IndiaSs largest dealing room in ,umbai

PHILOSOPHY

So,id R s arc1 C So,id Ad"ic

Fur )roking and >istribution 'Investment /ervices( business helps retail customers across the length and breadth of the country to take informed investment decisions with a strong research based advisory service. -ith an aim to provide the best research and advisory service 'a core focus area and strength of our company(, our clients are advised by the centralised advisory and dealing desk based in ,umbai. Extensive use of technology and the benefit of synergised operations under one roof have helped us deliver enhanced value to our clients2 which has been well received. -ith S/olid Research /olid &dviceS as our guiding philosophy, our services under the S)roking and >istributionS business include products such as E6uities, >erivatives, %ommodities, %urrencies, >epository /ervices, +ortfolio ,anagement /ervices, and distribution of ,utual Funds, +rimary E6uity Ffferings and Insurance products. &s on <!th /eptember, 3! < we had ;#1,1## customers and depository assets of over Rs. ,3.1.$ crore. -e are able to provide these services to customers through .$: business locations spread across : cities using a combination of < distribution modelsG

. Fur uni6ue )usiness +artner model provides a Swin4win4winS relationship for entrepreneurs, customers and the company. Bsing a combination of centralised advisory, efficient execution and strong backoffice processes, we are able to reach out to customers across the length and breadth of the country. 3. -e have a network of branches spread across ma5or cities. These provide the company a local footprint in important markets and also opportunities to cross4sell products and services.

<. In addition to our +an4India presence, we have a strong online platform that can be accessed through a >esktop application, on -eb, or through the ,obile, enabling customers to trade seamlessly and conveniently across various devices.

%hapter 4. Report on %orporate Goverance

CORPORATE 0O?ERNANCE REPORT LA/SH4I CE4ENT Ltd: ': CO4PANYES PHILOSOPHY ON CODE O%0O?ERNANCE : 2:
%orporate Governance is an integral part of values, ethics and best business practices followed by the %ompany. The core values of the %ompany are G

commitment to excellence and customer satisfaction maximising long term shareholders9 value socially valued enterprise and caring for people and environment

In a nutshell, the philosophy can be described as observing of business practices with the ultimate aim of enhancing long term shareholders9 value and commitment to high standard of business ethics by following best corporate governance norms in true letter and spirit. The %ompany has in place a %ode of %orporate Ethics and %onduct reiterating its commitment to maintain the highest standards in its interface with stakeholders and clearly laying down the core values and corporate ethics to be practiced by its entire management cadre. 2: 8OARD OF DIRECTORS : The )oard of >irectors presently consists of Twelve >irectors comprising of eight 8on4 executive >irectors '8E>( of which six are independent 'I8>(. The %hairman is 8on4 executive and is a +romoter. Four )oard ,eetings were held during the Financial Aear 3! 4 3 ended <
st

,arch 3! 3, on 3:th ,ay 3!

, 3;th ?uly 3!

, 3$th Fctober 3!

and ;th February 3! 3. &ttendance and other details of the >irectors are given below G The )oard periodically reviews %ompliance reports of all laws applicable to the %ompany and the steps taken by the %ompany to rectify instances of non4compliances, if any. The %ompany has a %ode of %onduct for ,anagement %adre /taff 'including Executive >irectors(, which is strictly adhered to. In terms of %lause .$ of the 0isting &greement and contemporary practices of good corporate governance, a %ode of %onduct was laid down by the )oard for all the )oard ,embers and /enior ,anagement of the %ompany. The said code is available on the %ompany9s website 'www.jklakshmicement.com(. &ll the )oard ,embers and /enior ,anagement +ersonnel have affi rmed compliance with the said %ode. This Report contains a declaration to this effect signed by the ,anaging >irector.

Futside >irectorships and %ommittee %ategory >irector 8o. of )oard -hether last &G, >irectorships %ommittee C 3 < . : ,emberships T 1 4 /hri @ari /hankar 8E> /inghania, %hairman /hri )harat @ari /inghania, =ice %hairman J ,anaging >irector Executive . yes . 4 4 . yes < %ommittee %hairmanships T ; 4 positions

,eetings attended &ttended ' 1.;.3!

$ /hri )hargava /hri 7ashi 8ath I8> ,emani < no 3 ).=. I8> < yes

<

/hri 8and Gopal I8>

no

7haitan /hri +radeep >inodia /hri Ra5 7umar I8> )ansal 8ominee( >r. Raghupati 8ed < no ; 4 'I>)I . no : 4 I8> < no # . .

/inghania /mt. =inita /inghania, ,anaging >irector /hri /hailendra Executive . no 4 4 Executive . yes < 4 4

%houksey, -hole4time >irector /hri /ushil 7umar -ali, -hole4time >irector >r. &5ay >ua U I I8> 3 no U U U Executive . yes 4 4

/hri

Ravi I8>

8.&.

8.&.

?hun5hunwala V

;: AUDIT CO44ITTEE:
The %ompany has an &udit %ommittee of Dir ctors sinc $#;. The OTerms of

ReferenceP of the %ommittee are in conformity with the provisions of /ection 3$3& of the %ompanies &ct, $:1 and %lause .$ of the 0isting &greement with the /tock Exchanges. The %ommittee consists of four >irectors out of which three are Independent >irectors and one is 8o executive >irector. Four meetings of the &udit %ommittee were held during the year ended < st ,arch 3! 3.

Dat s o% t1 ! tin2s and t1 nu!- r o% 4 !- rs att nd d:

>ates of meetings 3:th ,ay 3! 3;th ?uly 3! 3$th Fctober 3! ;th February 3! 3 8umber of members attended . < . .

T1 na! s o% t1 4 !- rs o% t1 Co!!itt T1 ir att ndanc at t1 4 tin2s :

and

Na!
/hri ).=. )hargava /hri Ra5 7umar )ansal 'I>)I 8ominee( /hri 8and Gopal 7haitan >r. Raghupati /inghania

Status
%hairman ,ember ,ember ,ember

No: o% 4 tin2s att nd d

< . . .

The %hief Finance Fffi cer regularly attends the %ommittee meetings and the %ompany /ecretary acts as the /ecretary of the %ommittee. &ll the %ommittee meetings were attended by the Internal &uditors and the /tatutory &uditors.

;: SHAREHOLDERSFIN?ESTORS 0RIE?ANCE CO44ITTEE :

The %ompany has /hareholdersIInvestors Grievance %ommittee at the )oard level. It consists of three >irectors, of which one is Independent >irector and one is a 8on4 executive >irector. Four meetings of the said %ommittee were held during the year ended <
st

,arch 3! 3. >r. &5ay >ua ceased to be a >irector on the )oard and . The composition of the %ommittee is in conformity with %lause .$ of the

/hareholdersIInvestors Grievance %ommittee of >irectors of the %ompany w.e.f. <!th /ept 3! 0isting &greement.

Dat s o% t1 ! tin2s and t1 nu!- r o% 4 !- rs att nd dG Dat s o% ! tin2s Nu!- r o% ! !- rs att nd d

3:th ,ay 3! 3;th ?uly 3! 3$th Fctober 3! ;th February 3! 3

. . . .

T1 na! s o% t1 4 !- rs o% t1 Co!!itt T1 ir att ndanc at t1 4 tin2s: 8ame

>r. Raghupati /inghania /hri 8and Gopal 7haitan /hri )harat @ari /inghania >r. &5ay >uaV

and 8o. of ,eetings attended

. . . 3

/tatus
%hairman ,ember ,ember ,ember

GDr: A9ay Dua c as d to - ! !- r #: :%:;3:(:23'': /hri ).7. >aga, =ice +resident J %ompany /ecretary, is the Com liance !ffi cer who oversees the investors9 grievances including related to Transfer of shares, 8onreceipt of balance sheet and dividends etc. >uring the year, only <3 complaints were received which stand resolved and no complaint is pending as on < st ,arch 3! 3. The %ompany also has a %ommittee of >irectors '%F>(, which approves registration of transfer and transmission of shares in physical mode on fortnightly basis. >uring this period, 31 meetings of %F> were held. &ll the valid re6uests for transfers of shares were processed in time and there are no pending transfers of shares

H: CORPORATE 0O?ERNANCE CO44ITTEE &non-!andatory+ :

The %orporate Governance %ommittee of >irectors comprises of /hri @ari /hankar /inghania '%hairman(, /hri +radeep >inodia, /hri /hailendra %houksey and /hri /ushil 7umar -ali. The %ommittee met on ;th ,ay 3! to oversee compliance by the

%ompany of the provisions of the %orporate Governance contained in%lause .$ of the 0isting &greement.

AUDITORSE CO4PLIANCE CERTIFICATE ON CORPORATE 0O?ERNANCE To t1 4 !- rs o% =/ LA/SH4I CE4ENT LI4ITED

-e have examined the compliance of conditions of %orporate Governance by ?7 0&7/@,I %E,E8T 0I,ITE>for the year ended < st ,arch 3! 3, as stipulated in %lause .$ of the 0isting &greement of the said %ompany with the /tock Exchanges. The compliance of conditions of %orporate Governance is the responsibility of the management. Fur examination was limited to procedures and implementation thereof, adopted by the %ompany for ensuring the compliance of the conditions of the %orporate Governance. It is neither an audit nor an expression of opinion on the fi nancial statements of the %ompany. In our opinion and to the best of our information and according to the explanation given to us, we certify that the %ompany has complied with, in all material respect, with the conditions of %orporate Governance as stipulated in the above mentioned 0isting &greement. -e further state that such compliance is neither an assurance as to further viability of the %ompany nor the effi ciency or effectiveness with which the management has conducted the affairs of the %ompany. For 0F>@& J %F, %hartered &ccountants

+lace G 8ew >elhi >ated G 1th ,ay 3! 3 8.7. 0F>@& Partner Firm9s Registration 8o. <! !: E ,embership 8o. #: :: ?7W

4ANA0E4ENT DISCUSSION AND ANALYSIS HI0HLI0HTS

X %ement /ales 'Including %linker for /ale( higher by ." to .#.#$ lac ,T X Gross Turnover at S $ : %r. higher by 3$" X +)I>T at S <$ .<; %r. higher by ;:" X +&T at S !#.;# %r. higher by #." X %linker production increased to <# 0ac ,T H agrowth of #" X %apacity utili*ation at !!" as against ;:" of theindustry X Improvement in +ower and Fuel effi ciencies

REPORT ON CORPORATE 0O?ERANCE IN A48U=A CE4ENT Ltd:

5eport on Corporate 'overnance

The 4irectors' Eeport on the compliance of the !orporate 5overnance !ode is given below.

6$ Corporate 'overnance 6$6 Company7s Philosophy on Corporate 'overnance:

t mbu&a !ements, !orporate 5overnance has been an integral part of the way we have been doing our business since inception. *e believe that good !orporate 5overnance emerges from the application of the best and sound management practices and compliance with the laws coupled with adherence to the highest standards of transparency and business ethics. These main drivers, together with the !ompany's ongoing contributions to the local communities through meaningful 0!orporate 2ocial Eesponsibility3 initiatives will play a pivotal role in fulfilling our renewed vision to be the most sustainable and competitive company in our industry and our mission to create value for all our sta(eholders.

The !ompany places great emphasis on values such as empowerment and integrity of its employees, safety of the employees J communities surrounding our plants, transparency in decision ma(ing process, fair J ethical dealings with all, pollution free clean environment and last but not the least, accountability to all the sta(eholders. These practices being followed since the inception have contributed to the !ompany's sustained growth. The !ompany also believes that its operations should ensure that the precious natural resources are utili)ed in a manner that contributes to the 0Triple Bottom "ine3.

6$8 The 'overnance /tructure:

mbu&a's governance structure is based on the principles of freedom to the e-ecutive management within a given framewor( to ensure that the powers vested in the e-ecutive management are e-ercised with due care and responsibility so as to meet the e-pectation of all the sta(eholders. In line with these principles, the !ompany has formed three tiers of !orporate 5overnance structure, vi 1@ The 9oard of ,irectors # The primary role of the Board is to protect the
interest and enhance value for all the sta(eholders. It conducts overall strategic supervision and control by setting the goals J targets, policies, reporting mechanism J accountability and decision ma(ing process to be followed.

#@ Committees of ,irectors #

such as udit !ommittee, !ompliance !ommittee, !ape- !ommittee etc. are focused on financial reporting, audit J internal controls, compliance issues and critical assessment J review of large cape-.

,@ E"ecutive Management :

The entire business including the support services are managed with clearly demarcated responsibilities and authorities at different levels.

;a< E"ecutive Committee : The 8-ecutive !ommittee comprises of the >anaging 4irector, the !8=, the Business Leads and certain !orporate 9unctional Leads. This committee is a brain storming committee where all important business issues are discussed and decisions are ta(en. This !ommittee reviews and monitors monthly performances, addresses

challenges faced by the business, draws strategies and policies and (eep the Board informed about important developments having bearing on the operational and financial performance of the !ompany. ;b< Managing ,irector : The >anaging 4irector is responsible for achieving the !ompany's vision and mission, overall business strategies, new pro&ects, ac/uisitions, significant policy decisions and all the critical issues having significant business J financial implications. Le also ensures implementation of the decisions of the Board of 4irectors and its various !ommittees. Le reports to the Board of 4irectors. ;c< CE= # The !8= is responsible for the entire operations of all the regions and for the overall performance and growth of the !ompany. Le provides strategic directions, policy guidelines and e-tends support to the 8-ecutive !ommittee >embers and other 9unctional Leads. Le reports to the >anaging 4irector. ;d< 9usiness )eads # *ith a view to decentrali)e the powers and responsibilities and to build leaders, the business operations have been divided into three regions, vi). ?i@ ;orth, ?ii@ *est J 2outh and ?iii@ 8ast. 8ach region is headed by a Business Lead, who is responsible for the day to day business and related functions within their respective regions. The Business Leads report to the !8=. ;e< >nit )eads : Hnit Lead is responsible for operation and maintenance of the plant as well as for all the other functions at the respective plant locations, including all local issues and compliances as may be applicable. Le reports to the Business Lead.

8$ 9oard of ,irectors 8$6 Composition:

The !ompany has a very balanced structure of the Board of 4irectors, which primarily ta(es care of the business needs and sta(eholders'

interest. The composition of the Board also complies with the provisions of the !ompanies followingG # < ct, 19%+ and the "isting greement. &s at the end of corporate financial year 3! 3, the total )oard strength comprises of the

Independent >irectors 'including %hairman( 8on Independent >irectors 'non executive( ,anaging >irector Total /trength

;one of the directors is a director in more than 1% public companies and member of more than 10 committees or act as !hairman of more than % committees across all companies in which they are directors. 4irectors are appointed or re-appointed with the approval of the shareholders and shall remain in office in accordance with the retirement policy as laid down by the Board from time to time. The >anaging 4irector and all the non-e-ecutive directors are liable to retire by rotation unless otherwise specifically approved by the shareholders. The ;on-e-ecutive 4irectors including Independent 4irectors on the Board are e-perienced, competent and highly renowned persons from their respective fields. They ta(e active part at the Board and !ommittee >eetings and play critical role on strategic issues, which enhances the transparency and add value in the decision ma(ing process of the Board of 4irectors. The brief profile of each 4irector is given below: ;i< Mr$ 2$ /$ /ekhsaria ;2on#E"ecutive Chairman Independent< >r. 2e(hsaria is a doyen of the Indian !ement Industry and one of the most respected business personalities in India. In a career spanning over ,# years, he has introduced new standards in manufacturing, management, mar(eting efficiency and corporate social responsibility to an industry he has helped transform. first generation industrialist, >r. 2e(hsaria, holds a Bachelor's 4egree with honours and distinction in !hemical 8ngineering, from the Hniversity of Bombay. s a founder promoter of mbu&a !ement he was the !hief 8-ecutive J >anaging 4irector of the !ompany since its inception in pril 198, till Canuary #00+. >r. 2e(hsaria relin/uished the post of >anaging 4irector and was appointed as ;on-e-ecutive 1ice !hairman when the management control was transferred to Lolcim. In 2eptember #009, he was appointed as ;on-e-ecutive !hairman after >r. 2uresh ;eotia relin/uished the post of !hairman. >r. 2e(hsaria built mbu&a !ement into the most efficient and profitable cement !ompany in India. Le has been instrumental in creating and developing a result-oriented management team. Lis e-traordinary business model for the !ompany was centred on continually fine-tuning efficiencies and upgrading facilities to meet

increased competition and the ever growing challenges in the !ement Industry. >r. 2e(hsaria also re-defined the industry practices by turning cement from a commodity into a brand, bringing cement plants closer to cement mar(ets and lin(ing plants to lucrative coastal mar(ets by setting up ports and a fleet of bul( cement ships for the first time in India. 4uring his tenure as a founder promoter, the !ompany grew from 0.$ million tonne capacity to 1% million tonnes, from one location foot print to a pan-India !ompany which set the bench mar( for the !ement Industry across every significant business parameters. The mar(et capitalisation of the !ompany also increased from the original M18 crores in the year 198% to about M1F,000 crores. These achievements from a first generation industrialist in such a short span spea(s volume of vision, business acumen and leadership /ualities of >r. 2e(hsaria. ;ii< Mr$ Paul )ugentobler ;2on#E"ecutive 4ice Chairman # Promoter ,irector representing )olcim 1td$& 2on Independent< >r. Lugentobler, a 2wiss national, obtained a degree in civil engineering from the 2wiss 9ederal Institute of Technology, 8TL, Nurich, and a degree in economic science from the Hniversity of 2t. 5allen. Le &oined Lolcim 5roup 2upport "imited in 1980 as 6ro&ect >anager and in 199F was appointed rea >anager for Lolcim "imited. 4uring 1999-#000, he served as !8= of 2iam !ity !ement, Thailand. Le has been a >ember of the 8-ecutive !ommittee of Lolcim since Canuary #00# with responsibility for 2outh sia and 28 ; e-cluding 6hilippines. Le &oined the Board in >ay #00+. In 2eptember #009 he was made ;on-e-ecutive 1ice !hairman. ;iii< Mr$ 9ernard Fontana ;2on#E"ecutive Promoter ,irector representing )olcim 1td$& 2on Independent %$e$

N d o% t1 study

This study will be useful for comparison of %orporate /ocial Reporting +ractices in ?7. 0axshmi and &mbu5a %ement Industry. this study will be useful for other /tudents as a /econdary data. this study is useful for study of perception and awareness of people about %orporate /ocial Repoting of people about %orporate /ocial Reporting +ractices &ctivities.

O-9 cti" s o% t1 Study

To know the %oncept of /ocial Reporting +ractices in Indian /cenario. To /tudy the %orporate /ocial Repotting +ractices in &mbu5a %ement 0td. &nd ?7. 0axshmi %ement 0td. To know the problems and analyses adopting %orporate /ocial Reporting +ractices in &mbu5a %ement 0td. &nd ?7. 0axshmi %ement 0td. To make a %omparative /tudy )etween &mbu5a %ement 0td. &nd ?7. 0axshmi %ement 0td.

R s arc1 4 t1odo,o2y

DATA COLLECTION This /tudy is based on /econdary data. SECONDARY DATA /econdary data will be collected through )ook, 8ewspaper, ?ournals, ,aga*ines, Internet, and &nnual Report of &mbu5a %ement 0td. &nd ?7. 0axshmi %ement 0td. SA4PLE SIIE /ample si*e will be Two %ompanies ' .&mbu5a %ement 0td: 2 :?7. 0axshmi 0td. DURATION OF THE STUDY The duration of the study from 3! !4 SELECTION CRITARIA Top Two %ompanies. ,id %ap %ompanies 0isted in / J + '/tandard and +oor( and )/E ')ombay /tock Exchange( ,id %ap Index. TOOLS TO 8E USED +resentation tools4 o Table o Graph /tatistical tools o +ercentage Pro$os d P,an o% Study to 3! 4 3

 C1a$t r '- Introduction C1a$t r 2- Review of literature C1a$t r ;- Research ,ethodology C1a$t r <- Reporting +ractices in cement industry G4%omparative study between ambu5a cement 0td.and 5k laxshmi cement 0td. C1a$t r H- &nalysis and Findings C1a$t r )- %onclusion