UltraTech Cement Ltd

Company scenario

2015-2016

Company’s cement capacity has climbed upto 66.3 mtpa from 60.2 mtpa in the previous year.
The company aimed to increase their production capacity.

Acquisition of cement plants of Jaiprakash Associates Limited in Madhya Pradesh, Uttar

Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh. These plants have a capacity
of 21.2 mtpa. After this is in place, the Company’s cement capacity shall rise up to 87.5 mtpa
in India.

UltraTech is driven by a culture of product and pro‑ cess innovation, reflected in the launch
of premium products, improving capacity utilisation and the clinker to cement blending ratio.

UltraTech works closely with government schemes like Pradhan Mantri Gram Sadak Yojna,
Swachh Bharat and Indira Awas Yojna, which are directed at enhancing rural infrastructure –
affordable homes, roads and schools.

The Company has quadrupled pet coke consumption, increasing the proportion of pet coke to
more than 70% of the fuel mix, most UltraTech units are now driven completely by pet coke,
reducing the cost of core fuels.

Company’s cement capacity was augmented to 64.65 MTPA following greenfield capacity
addition of 4.5 MTPA.

Limestone and coal represent basic inputs in cement manufacture. Although Ultratech
possesses sufficient limestone reserves for existing operations, securing additional reserves is
critical to address Company’s expansion programme.

2018-2019

The acquisition of Jaiprakash Associates Limited was successful.

The significant development of the year was the successful acquisition of Binani Cement
Limited, renamed as UltraTech Nathdwara Cement Limited, having an installed capacity of
6.25 mtpa in India.

This acquisition gives the company access to superior quality limestone reserves. BCL's
subsidiaries in China and UAE stand transferred to UltraTech.
The move has been largely made on account of these factors and synergies that will stem
from it. These include economies of scale, optimization of costs, both in manufacturing and
logistics, coupled with a wider distribution network

Company commissioned a greenfield cement capacity of 3.50 MTPA at Manavar, District

Dhar, Madhya Pradesh, taking its total capacity to 88.50 MTPA

At Ultratech, the most effective means of enhancing business sustainability is through

complementary acquisitions in which the company has been successful.

Learnings

Ultratech is making strategic acquisition and always striving to increase its production
capacity.

Increased rural penetration, with higher contribution from UltraTech Building Solutions
increase their domestic sales.

Being cost competitive without compromising the quality of the products in the current
market situation helps the companies not only to be competitive but to achieve or to attract all
the projects from the clients which helps them to be a leader in the market.

The company is aligning its strategies with its goal and is performing above their
competitors.

e 3 accelerated leadership programs. First - The Turning Point, which prepares high potential leaders
for P&L roles. Second - Step Up which infuses a ready pipeline for Functional Head roles, and Third -
Springboard designed especially for high caliber women leaders. These have enabled us set up the
requisite bench strength of leaders.

UltraTech provides a range of products that cater to the various aspects of

construction, from foundation to finish. This includes Ordinary Portland
Cement, Portland Blast Furnace Slag Cement, Portland Pozzalana
Cement, White Cement, Ready Mix Concrete, building products and a host
of other building solutions. Cement is sold under the brands ‘UltraTech,
UltraTech Premium and Birla Super.’ White cement is manufactured under
the brand name of ‘Birla White’, ready mix concretes under the name of
‘UltraTech Concrete’ and new age building products under the names of
‘Xtralite, Fixoblock, Seal & Dry and Readiplast’. UltraTech Building
Solutions is a retail format that caters to the end consumer providing a
variety of primary construction materials under one roof.

Strategy:
 What is our strategy?
 How do we intend to achieve our objectives?
 How do we deal with competitive pressure?
 How are changes in customer demands dealt with?
 How is strategy adjusted for environmental issues?
Structure:
 How is the company/team divided?
 What is the hierarchy?
 How do the various departments coordinate activities?
 How do the team members organize and align themselves?
 Is decision making and controlling centralized or decentralized? Is this
as it should be, given what we're doing?
 Where are the lines of communication? Explicit and implicit?
Systems:
 What are the main systems that run the organization? Consider financial
and HR systems as well as communications and document storage.
 Where are the controls and how are they monitored and evaluated?
 What internal rules and processes does the team use to keep on track?
Shared Values:
 What are the core values?
 What is the corporate/team culture?
 How strong are the values?
 What are the fundamental values that the company/team was built on?
Style:
 How participative is the management/leadership style?
 How effective is that leadership?
 Do employees/team members tend to be competitive or cooperative?
 Are there real teams functioning within the organization or are they just
nominal groups?
Staff:
 What positions or specializations are represented within the team?
 What positions need to be filled?
 Are there gaps in required competencies?
Skills:
 What are the strongest skills represented within the company/team?
 Are there any skills gaps?
 What is the company/team known for doing well?
 Do the current employees/team members have the ability to do the job?
 How are skills monitored and assessed?