SUMITTED BY- PRAVEEN KUMAR GUPTA

PGDM(General) SECTION B
ROLL NO:- 38
SUBMITTED TO
Dr. NEELAM TANDON
History
Ambuja Cements Limited, formerly known as Gujarat Ambuja Cement Limited, is
an Indian major cement producing company, the second largest in the world and
first in its continent. The Group's principal activity is to manufacture and market
cement and clinker for both domestic and export markets.
Ambuja Cements was set up in 1986. In the last decade the company has grown
tenfold. The total cement capacity of the company is 18.5 million tones. Its plants
are some of the most efficient in the world. With environment protection measures
that are on par with the finest in the developed world. The company's most
distinctive attribute, however, is its approach to the business. Ambuja follows a
unique homegrown philosophy of giving people the authority to set their own
targets, and the freedom to achieve their goals. This simple vision has created an
environment where there are no limits to excellence, no limits to efficiency. And
has proved to be a powerful engine of growth for the company. As a result,
Ambuja is the most profitable cement company in India, and one of the lowest
cost producer of cement in the world.
When the company started out, it approached the cement business with an open
mind. To compete with the older, established players who had already written off
 their plant cost, it was important to have the lowest capital cost per ton of cement.
Their plants would have to be set up in record time. Their capacity utilization
would have to be above 100%. And their power consumption would have to set a
record low these were the main theme of company.
Today, Ambuja is one of the leading company in India, with an annual plant
capacity of 16 million tonnes including Ambuja Cement Eastern Ltd. and revenue
in excess of Rs.3298 crore.
In 1993, Ambuja Cement set up a complete system of transporting bulk cement via
the sea route. Making it the first company in India to introduce bulk cement
movement by sea. Others followed and today, about 10% cement travels by this
new route.
Port terminal of the company is situated at Muldwarka, Gujarat: Its an all weather
port, 8 kms from the company’s Ambujanagar plant. Handles ships with 40,000
DWT. It is also equipped to export clinker and cement and import coal and furnace
oil.
In 2013 the company approved a proposal, wherein Ambuja will first acquire from
Holderind Investments Ltd., Mauritius (Holcim), a 24% stake in Holcim India for a
cash consideration of Rs 3,500 crores, followed by a merger of Holcim India into
Ambuja. These intra–group transactions will result in Ambuja holding 50.01%
stake in ACC.In addition, the Board also provided its approval for Ambuja to make
commercially reasonable efforts to invest upto Rs 3,000 crores to acquire an
economic ownership in ACC of up to 10% without triggering a mandatory open
offer, subject to shareholders and regulatory approvals as applicable.

Bulk Cement Terminals of the company:

Surat: Bulk Cement Terminal with a storage capacity of 15,000 tonnes has bulk
cement unloading facility.
Panvel: Strategically located near India’s biggest cement market, has a storage
capacity of 17,500 tonnes and a bulk cement unloading facility.
Galle: 120 kms from Colombo, Sri Lanka. Handles 1 million tonnes of cement
annually.
Cochin: The latest addition to our configuration of Bulk Cement Terminal
Ambuja Cement exports almost 17% of its production in a very competitive
international environment. For the last ten years, Ambuja Cement remains India’s
highest exporter of cement.
Busiiness area of the company:
 The company is engaged in manufacture and market cement and clinker for both
domestic and export markets.
Milestones:
 2010
On 24th February 2010, Ambuja Cements Ltd (ACL) inaugurated its
cement plant (grinding unit) at Dadri, Uttar Pradesh. Capacity: 1.5 million tonnes..
On 27 March, 2010, Ambuja Cements Ltd (ACL) inaugurated its cement
plant (grinding unit) at Nalagarh, Himachal Pradesh. Capacity: 1.5 million tonnes.
In December 2010, the Dadri Grinding Unit in its very first year of
operation received the Integrated Management System (IMS) Certification,
including ISO 9001:2008, ISO 14001:2004, and OHSAS 18001:2007 by BSI
(U.K.).
 2009– The Company launched its knowledge initiative i.e. Ambuja Knowledge
Center,to enable industry professionals get a first–hand feel of the world of
cement and concrete. During the year, three centers became operational in the
cities of Jaipur, Ahmedabad and Kolkata.
 2008– The Company also sets up the Corporate Communications department,
thus marking its deep commitment to be a responsive organisation, answerable
and accountable to its key internal and external stakeholders.
 2009– The Company launched its knowledge initiative i.e. Ambuja Knowledge
Center,to enable industry professionals get a first–hand feel of the world of
cement and concrete. During the year, three centers became operational in the
cities of Jaipur, Ahmedabad and Kolkata.
 Opening of Dadri Plant On 24th February 2010, Ambuja Cements Ltd (ACL)
inaugurated its cement plant (grinding unit) at Dadri, Uttar Pradesh. Capacity:
1.5 million tonnes.
 On 27 March, 2010, Ambuja Cements Ltd (ACL) inaugurated its cement plant
(grinding unit) at Nalagarh, Himachal Pradesh. Capacity: 1.5 million tonnes.
 In December 2010, the Dadri Grinding Unit in its very first year of operation
received the Integrated Management System (IMS) Certification, including ISO
9001:2008, ISO 14001:2004, and OHSAS 18001:2007 by BSI (U.K.).
Achievements/ recognition:
Achievements
 Environment protection measure that conform to the worlds best.
 Benchmarking quality standards for the industry.
 Reinventing cement transportation.
 Ambujanagar has won 'Best Environmental Excellence in Plant Operation' –
National award by NCBM 2009
 'Certificate of Appreciation' for Accident Free million man hour our worked –
Gujarat Safety Council – Baroda 2009
Recognition
 National Award for commitment to quality by the Prime Minister of India.
 National Award for outstanding pollution control by the Prime Minister of India.
 ISO 9002 Quality Certification.
 ISO 14000 Certification for environmental systems.
 Best Award for highest exports by CAPEXIL.
 Economic Times – Harvard Business School Association Award for corporate
excellence.

STOCK PRICE

NSE
282.60
Change Change %
2.25 0.80%
Updated:01 Sep, 2017, 15:58 PM IST
BSE
282.30
Change Change %
1.70 0.61%
Updated:01 Sep, 2017, 15:51 PM IST

Cement industry
Cement industry is an oligopoly market
India is the second largest producer of cement in the world. No wonder, India's
cement industry is a vital part of its economy, providing employment to more than
a million people, directly or indirectly. Ever since it was deregulated in 1982, the
Indian cement industry has attracted huge investments, both from Indian as well as
foreign investors.
India has a lot of potential for development in the infrastructure and construction
sector and the cement sector is expected to largely benefit from it. Some of the
recent major government initiatives such as development of 98 smart cities are
expected to provide a major boost to the sector.
Expecting such developments in the country and aided by suitable government
foreign policies, several foreign players such as Lafarge-Holcim, Heidelberg
Cement, and Vicat have invested in the country in the recent past. A significant
factor which aids the growth of this sector is the ready availability of the raw
materials for making cement, such as limestone and coal.
Investments
On the back of growing demand, due to increased construction and infrastructural
activities, the cement sector in India has seen many investments and developments
in recent times.
According to data released by the Department of Industrial Policy and Promotion
(DIPP), cement and gypsum products attracted Foreign Direct Investment (FDI)
worth US$ 5.24 billion between April 2000 and March 2017.
Some of the major investments in Indian cement industry are as follows:

 Emami Ltd, a fast-moving consumer goods (FMCG) company, plans to

invest around Rs 8,500 crore (US$ 1.32 billion) to scale up its cement
production capacity from 2.4 million tonnes (MT) to 15-20 MT in the next
three to five years.
 The Gujarat-based Nirma group, with presence in detergent, soap and
chemicals sector, has bought Lafarge India’s cement business, consisting of
11 MT production capacity, for US$ 1.4 billion.

Gujarat Ambuja Cement Ltd and Holcim Ltd today announced a strategic alliance
that will see Holcim get 67 per cent stake in Ambuja Cements India Ltd (ACIL),
with Gujarat Ambuja holding 33 per cent. Through ACIL - which already holds
13.8 per cent in ACC and 94 per cent in ACEL - Holcim will make open offers for
ACC as well as Ambuja Cement Eastern Ltd.

Overall, Holcim will spend $800 million (Rs 3,502 crore), which according to Mr
Anil Singhvi, whole-time Director with Gujarat Ambuja Cements Ltd, would
account for 20 per cent of the foreign direct investment of $4 billion recently in the
country

On the unexpected entry of the foreign cement major, Mr Singhvi said: "At GACL
we have never resisted the entry of MNCs into the sector, we welcome
competition. In fact, we have brought in the competition in collaboration with us."

After the open offer, ACIL, which owns 13.8 per cent in ACC, will increase its
shareholding up to 50.01 per cent. The open offer is at Rs. 370 per share. (This
happens to be the same price at which ACIL acquired its original stake in ACC
from the Tata group five years ago).

The open offer for ACEL will be at Rs. 70 per share, for the entire public
shareholding from the minority shareholders. ACIL, which owns 94 per cent of
ACEL, aims to own 100 per cent of ACEL.

If the deal proceeds according to the plan, Holcim itself will effectively have a 33
per cent stake in ACC and a 67 per cent stake in ACEL, and would clearly be the
single largest shareholder in both these companies.

Highest ever valuation: Valuation-wise, this transaction could have fetched the
highest ever in the Indian cement industry. "The valuation of ACC shares is based
on the internal factors. The cost per tonne for the deal works out to $90 per tonne.
This is higher than the previous transactions in the cement sector. The previous
deal where cement division of L&T was de-merged was valued at $80 per tonne,"
said Mr Promeet Ghosh, Senior Vice-President, DSP Merrill Lynch.

Holcim has entered into an agreement with private equity investors American
International Group and Government of Singapore Investment Corp to acquire
their entire 40 per cent shareholding in ACIL for $200 million (Rs 875 crore).

Holcim has also entered into a share subscription arrangement with ACIL for
investing $600 million towards capital.

This will eventually go towards the open offers to be made for ACC and ACEL.
After this, the paid up capital of ACIL will increase from Rs. 475 crore to Rs. 850
crore, said Mr Singhvi. Both these acquisitions are being made at Rs. 47 per ACIL
share, at a premium of Rs. 37 per share of face value Rs. 10, and are subject to
regulatory approvals.
ACIL Board to be reconstituted: The board of directors of ACIL will be
reconstituted to reflect the shareholding pattern with two-thirds of the members to
be nominees of Holcim, the rest to be nominees of Gujarat Ambuja.

The members of the board of Associated Cement Companies Ltd today accorded
their `no-objection' to the proposed open offer by Holcim group for the limited
purposes of the application to the Foreign Investment Promotion Board by the
foreign company for its proposed offer.

Share prices fall: Both Gujarat Ambuja and ACC today ended lower on the
bourses. Gujarat Ambuja closed at Rs. 423.5 on BSE, down by Rs. 21.85, losing
4.91 per cent from yesterday's close.

ACC lost 6.46 per cent, losing Rs. 23.6, to close at Rs. 341.75. The market
apparently expected higher valuations for ACC, said brokers.

Demand forecast
Demand for cement is expected to increase by 6-8% in fiscal year 2017.

Mumbai report: The country’s top three cement producers—Ultratech

Cement Ltd, ACC Ltd and Ambuja Cements Ltd—are expecting a revival in
cement demand during the current financial year.

The companies, who have finished reporting their fourth quarter earnings,
project a 6-8% growth in cement demand this fiscal year, compared to about
3% in the previous year.

These forecasts are grounded on expectations of improved demand from

infrastructure and housing projects backed by the government.

“A significant component of infrastructure demand is driving growth. Pay

commission disbursements would happen (and that) will also trigger housing
growth. Roads, hydel projects, metro projects, and low income housing
projects in the infrastructure segment are doing good,” said Atul Daga, chief
financial officer, Ultratech Cement. The company estimates cement demand
will grow at 7-8% in the current financial year.

LafargeHolcim-controlled ACC and Ambuja Cements have similar

expectations.
On 13 April, Harish Badami, chief executive officer and managing director of
ACC told shareholders at the company’s annual general meeting (AGM) that
demand growth is projected to touch 6% in calendar year 2016 compared to
2% in 2015. Badami’s optimism is based on major advancements in
infrastructure, connectivity, housing and sanitation.

“It’s not unreasonable to foresee cement demand enjoying a compounded

growth rate of 6-7% over the next five years,” added N.S. Sekhsaria, chairman
for Ambuja Cements Ltd, in a letter to shareholders in the company’s 2015
annual report.

Early signs of a pickup in demand have been visible in the March-quarter

earnings.

On Monday, Ultratech Cement, the country’s largest cement producer

reported a 15% rise in its cement sales volumes for the March quarter.
Analysts are hopeful that this is an industry-wide trend. According to an April
report by Motilal Oswal Securities Ltd, cement volume growth will average 9-
9.5% for the January-March 2016 quarter.

With the rise in demand, certain regional markets like North India have also
seen an increase in cement prices, according to two Delhi-based cement
dealers. However, pan India average cement prices remained lower at Rs.290
per bag for the March quarter compared to Rs.294 in the previous quarter due
to a slump in the South and East markets, said the Motilal Oswal report.

Not everyone is convinced that the pickup in demand is here to stay. Some say
the increased demand is largely seasonal.

“Expecting demand growth over 6% would be aggressive. The demand uptick

seen in the January-march period is more seasonal and not a trend yet,” said
Amey Joshi, associate director (corporate) at India Ratings and Research, the
local unit of Fitch Group Inc.

The last and first quarter of a financial year are typically considered the best
quarters for the cement sector due to increased construction activity seen
before the onset of monsoons.

India Ratings estimates demand growth in the range of 4-6%, according to its
2016-17 outlook report released on 1 February. The demand forecast builds in
“slightly better demand from the construction and infrastructure segments led
by government spending,” said the report while adding that it does not expect
any significant revival in housing demand in either rural or urban areas.

An official with a smaller cement company expressed similar scepticism. “I

would not call it a trend or a turnaround yet because housing demand still
remains weak and infrastructure is yet to pick up in a big way,” said the official
who spoke on condition of anonymity.

Ambuja cement strategies and process

Research and innovation

Ambuja Cement's strong credentials in research, development, and innovation have
helped it develop new products and services tailored to the needs of its customers.

Innovation has been the hallmark of Ambuja Cement since its inception. The company's strong
credentials in research and development, and innovation have led to the development of new
products and services to better serve the needs of its customers.

Concrete Futures Laboratory

A one-of-a-kind initiative by Ambuja Cement, the Concrete Futures Laboratory (CFL) is a one-stop
solution for the Architect, Engineer and Construction professionals (AEC) community to 'test, learn
and experience' cement and concrete. Compliant with the requirements of ISO/IEC 17025:2005,
there are currently eight CFLs functional across India. Four CFLs have been awarded accreditation
by the National Accreditation Board for Testing and Calibration Laboratories (NABL).

Testing
1. Physical testing of construction materials
CFL conducts physical testing of construction materials which includes testing of cement and
aggregates as per IS specifications.

Following are the tests conducted on coarse and fine aggregates, and on concrete under NABL
accreditation at the CFL laboratory:

 Sieve Analysis
 DLBD
 Water Absorption
  Surface Moisture
 Material Passing through 75 micron sieve
 Elongation & Flakiness Index
 Specific Gravity
 Concrete Cube Testing services

In addition to the above, the following tests are also conducted:

 Rapid Chloride Penetration Test

 Mortar Testing
 Normal consistency of Cement
 Initial & Final Setting Time of Cement
 Marsh Cone Test
 Fineness of Cement by Blaine’s Method
 Slump Cone Test
 Compaction Factor Test
 Flow Table Test
 V Funnel Test
 U Tube Test

2. Non Destructive Testing

3. Ultrasonic Pulse Velocity

4. Rebound Hammer Test

Concrete Mix Design Services

CFL offers the following concrete mix design services:

 Normal concrete grades up to M55

 High strength and High performance concrete above M55 grade
 Normal consistency of cement
 Self-compacting Concrete
 Fiber Reinforced Concrete
 Light-weight Concrete and Heavy-density Concrete
 Dry-lean Concrete and Pavement Quality Concrete
 High Volume Fly Ash Concrete
 Concrete Mix for Hollow & Solid Blocks

Special tests at CFL

Due to non-availability of natural sand and the environmental hazards associated with mining of
sand, the industry has found another alternative for natural sand, called M-sand, to meet the
requirements of the construction industry. CFL conducts different tests to ascertain and compare the
performance of natural sand as well as different types of M-sand available in the market.
 1. HolcimCone TM HolcimConeTM is an application-based
testing methodology developed to assess the rheological
and mechanical performance of concrete. In a simplified
approach, HolcimConeTM testing will help assess the
workability and strength development of a concrete by
testing its mortar.

2.

HolcimBlu TM Methylene Blue test methods are

standardised to quantify clay contamination in sand used for
concrete production. HolcimBlu™ helps to raise awareness
about contamination and ways to overcome/solve issues
created by clay.

3. HolcimShapeTM
The test helps to characterise the shape of sand, one of the
main quality parameters of sand. The tests do not directly
assess the water demand of sand; instead it assesses its
particle nature, which together with other sand properties
(gradation, clay content), influences the performance in
application.

High strength. High performance cement

Known for its high strength, high performance cement caters to each of its three
customer segments – Individual Home Builders (IHBs), Masons and Contractors, and
Professionals
An established brand in India, Ambuja Cement is known for its high strength, high performance
cement which has become the byword for strong and durable structures. The company currently has a
manufacturing capacity of 29.65 million tonnes.

Through use of state-of-the-art technology and strong thrust on research and development, Ambuja
Cement has developed products to cater to its three customer segments – Individual House Builders,
Masons and Contractors, and Professionals.

Innovation – the hallmark of Ambuja Cement since its inception – has helped it develop technology
to produce cement of consistent quality from diverse raw materials. About 25 per cent of the
company’s production of high strength Portland Pozzolana Cement (PPC) uses fly ash – a waste
produced in thermal power plants – as raw material. PPC currently constitutes 93 percent of the
company’s product portfolio.

AMBUJA PLUS ROOF SPECIAL

The company has developed Ambuja Plus Roof Special, a special quality PPC cement with advanced
SPE technology which makes the concrete stronger, denser and leak proof, and consequently
strengthens the roof.
ALCCOFINE MICRO

Ambuja Cement’s latest breakthrough is Alccofine Micro Materials which find wide use in
construction projects like metro rail, dams, roads, flyovers, bridges, tunnels, etc. The micro materials
range from high strength concrete additives to products for special applications.
Support and services
Ambuja Cement has been creating differentiated engagement with its customers through its support and
services. The services address the needs of the company’s three main customer segments – Individual
Home Builders, Masons and Contractors, and Professionals

Ambuja Cement has been creating differentiated engagement with customers and influencers through its
value added services. Users and influencers are empowered and educated through onsite guidance
regarding right construction practices, training and certification of unskilled/semi-skilled manpower,
knowledge transfer on advancement of materials and technology, developing simple tools and methods
for improving construction practices, customer and influencer engagement programmes and other value
added services.

The company has been creating sustainable impact beyond its business too. A team of 300 experienced
graduate civil engineers is engaged in creating a sustainable impact utilising the company’s products and
services. The team has developed a simple-to-use service package that includes a customised mix of
concrete and a waterless way of curing concrete. It also provides simple design layouts to build houses in
small towns where professional architects are not available. The group conducts regular seminars to
create awareness about good materials and good construction practices. Ambuja engineers also provide
practical training to small contractors and masons to improve their skill and practices.

Ambuja Cement's support and services are tailor-made to suit the requirements of each of its three main
customer segments: Individual Home Builders, Masons and Contractors, and Architects and
engineers.
Ambuja Knowledge Initiative
Foundations – An Ambuja Knowledge Initiative, endeavours to enhance and expand
the knowledge base of the Architects, Engineers and Construction (AEC)
professionals. Ambuja Knowledge Centres, a bespoke initiative, aims to advance the
knowledge of construction professionals through sharing

Foundations – an Ambuja Knowledge Initiative, endeavours to enhance and expand the knowledge
base of Architects, Engineers and Construction (AEC) professionals. The initiative serves as a
platform to share information, create interaction and provide inspiration to the AEC community. It
also seeks to evolve an experiential and exhaustive understanding of cement, and encourage
innovation within the field.

 Change perceptions about cement and concrete.

 Encourage experimentation in the industry.
 Facilitate the opening of a new chapter for cement and concrete in contemporary architecture
and design.
 Open minds to realise the awesome potential of the material.
AMBITION

 Educate the AEC community about the potential and versatility of cement.
 Increase knowledge quotient of design professionals by de-mystifying the material.
 Expand avenues for creative and participatory experiences of cement and concrete for the
user.
INTENT
Foundations – an Ambuja Knowledge Initiative that encompasses multiple-levels of innovative and
experiential formats for activities that will inform, activate, interact with and inspire the AEC
community about the cement industry.

SCOPE
National learning and training initiatives
Another initiative aimed at the AEC
community is the National Learning and
Training Initiative. This will help
professionals expand their knowledge about
concrete and the innovative ways it can be
put to use. Through a series of lectures,
studios and workshops, training sessions,
and interactions with experts in the field,
AEC professionals can learn about
innovative new products and technologies.
An interaction with world renowned
engineer William Frazier Baker, also
known as Bill Baker, was organised by
Ambuja Knowledge Centre - Mumbai.

Ambuja Knowledge Centre

Ambuja Knowledge Centres (AKC) serve
as a knowledge sharing platform for
construction professionals. Currently, 27
AKC are operational in various parts of the
country. AKCs help in advancing the
knowledge of professionals through
practical workshops and also function as
experience centres that promote and offer
solutions for cement and concrete
applications.

AKC aims to provide AEC professionals with the following services:

 Material library
 Reference portal
 Professional support/guide availability
 Inspire usage of product/material
 Allow a hands-on experience on cement concrete
 Allow a broad understanding of opportunities and resource for the same
 One stop shop for ideas
AKC locations in India
Ambuja cement economic analysis
The Company has five integrated cement manufacturing plants and eight cement grinding
units across the country. Ambuja Cement has a captive port with three terminals along the
country’s western coastline to facilitate timely, cost effective and environmentally cleaner
shipments of bulk cement to its customers. The Company’s subsidiaries include Kakinada
Cements Ltd., M.G.T. Cements Private Ltd., Chemical Limes Mundwa Private Ltd., Dang
Cement Industries Private Ltd. and Dirk India Private Ltd. In June 2011, the Company
acquired Dang Cement Industries Pvt. Ltd. In September 2011, ACL acquired 60% interest
in Dirk India Pvt. Ltd.

*Financial Year starts from January to December.

Key Financial Figures

Consolidated

Particulars FY 2015 FY 2016

Total Income from Operations 9,795.03 9,191.72

Expenses 7,321.60 7,549.14

Earnings Before Other Income, Interest, Tax and Depreciation 2,473.43 1,642.58
(Operating Profit)

Depreciation 568.68 493.67

Finance Costs 78.46 66.75

Other income 348.52 391.33

Exceptional items 279.13 (24.82)

PBT 1,895.68 1,498.31

Tax 603.86 219.87

 PAT (before Minority Interest and share of Associates) 1,291.82 1,278.44

Profit/ (loss) attributable to Minority Interest (1.39) (0.13)

Share of profit/(loss) of Associates – –

Consolidated Profit / (Loss) for the year 1,293.21 1,278.57

Profitability Analysis
Consolidated (%)

Particulars FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Operating Profit Margin Ratio 25.25 17.87 19.28 16.27 15.33

Net Profit Margin Ratio 13.19 13.91 14.87 8.52 6.98

Operating profit margin is a measurement of the proportion of a company’s revenue that is

left over after paying for production costs such as raw materials, salaries and administrative
costs. Net profit margin is arrived at by deducting non operating expenses such as
depreciation, finance costs and taxes out of operating profit and shows what is left for the
shareholders as a percentage of net sales. Together these ratios help in understanding the
cost and profit structure of the firm and analysing business inefficiencies.

Key Balance Sheet Figures

Sources of Funds / (Rs. Cr)
Liabilities

Particulars FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Share Capital 308.44 309.17 309.95 310.38 397.13

Share application money – – – – –

pending allotment
Reserves & Surplus 8,488.97 9,152.72 9,760.02 9,961.02 19,148.32

Employee Stock Option – – – – –

Outstanding

Net worth (shareholders 8,797.41 9,461.89 10,069.97 10,271.40 19,545.45

funds)

Minority Interest 0.84 0.71 0.72 0.72 4,377.77

Long term borrowings 39.32 33.43 21.55 23.55 23.58

Current liabilities 3,044.61 2,853.28 3,154.68 3,229.53 7,547.01

Other long term liabilities 25.80 43.11 42.53 42.16 185.8

and provisions

Deferred Tax Liabilities 548.25 564.32 589.04 565.60 1,053.35

Total Liabilities 12,457.18 12,956.74 13,878.49 14,132.96 32,732.96

Application of Funds / (Rs. Cr)

Assets

Particulars FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Fixed Assets 6,474.45 6,844.25 7,001.77 6,586.59 21,985.44

Noncurrent Investments 37.10 29.60 29.60 29.60 130.53

Miscellaneous Expenditure – – – – –
 Current assets 5,292.74 5,527.28 6,002.71 6,520.99 8,148.03

Long term advances and 652.13 555.17 844.39 1,025.38 2,468.96

other noncurrent assets

Deferred Tax Assets 0.76 0.44 0.02 – –

Total assets 12,457.18 12,956.74 13,878.49 14,132.96 32,732.96

Efficiency Analysis
(%)

Particulars FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

ROCE 27.99 17.30 19.11 14.98 13.03

ROE / RONW 14.70 13.51 14.76 7.87 7.26

Return on Capital Employed (ROCE) measures a company’s profitability from its overall
operations by calculating the return generated on the total capital invested in the business
(i.e. equity + debt). Return on Equity (ROE) or Return on Net Worth (RONW) measures the
amount of profit which the company generates on money invested by the equity
shareholders. In short, ROE draws attention to the return generated by the shareholders on
their investment in the business. Together these ratios can be used in comparing the
profitability of the company with other companies in the same industry.

Valuation Analysis
Consolidated

Particulars FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Total Income from Operations 9,795.03 9,191.72 9,999.67 9,481.34 20,343.83

(Rs. Cr.)
 Growth (%) 13.64 % (6.16 %) 8.79 % (5.18 %) 114.57 %

PAT (Rs. Cr.) 1,291.82 1,278.44 1,486.51 807.88 1,419.01

Growth (%) 5.24 % (1.04 %) 16.28 % (45.65 75.65 %

%)

Earnings Per Share – Basic 8.41 8.28 9.61 5.21 5.65

(Rs. )

Earning Per Share – Diluted 8.38 8.27 9.60 5.21 5.65

(Rs. )

Price to Earnings 23.98 22.10 23.55 44.56 43.59

The Company has maintained an average dividend yield of 1.79 % over the last 5 financial
years.

Major Competitors
UltraTech Cement
The biggest player in the Indian cement industry is UltraTech Cement, a product of
the Indian multinational conglomerate – the Aditya Birla Group that was founded
in 1857. The group started its cement business in 1983 and named the brand
UltraTech Cement. This company is based in India's financial capital Mumbai. As
much as 6.4 crore tonnes of grey cement is churned out by UltraTech Cement
every year. The company is also the largest cement exporter in India. On 10 July
2015, the market capitalisation of UltraTech Cement was valued at Rs. 85,363.84
crore.

Shree Cement
Shree Cement is one of India's leading cement manufacturing companies. It was
established in 1979 in Beawar town of the Ajmer district of the state of Rajasthan.
The founder member of Shree Cement, Benu Gopal Bangur is the executive
chairman of the company. The annual amount of cement produced by Shree
cement weighs up to 1.75 crore tonnes. Shree Cement's market capitalisation
amounted to Rs. 38,460.30 crore on 10 July 2015.
ACC
ACC (Associate Cement Companies Limited) is one of the top cement
manufacturers of India. It was founded in 1936 and is headquartered in Mumbai.
The Associate Cement Companies Limited is a group of companies like FE
Dinshaw, Killick Nixon, Khataus and Tata. There are 17 modern cement
manufacturing facilities across the country that belong to ACC. The company
employs over 9,000 people and has many dealers for the distribution of its product.
ACC's market capitalisation was Rs. 27,639.93 crore on 10 July 2015.