Académique Documents
Professionnel Documents
Culture Documents
Cement
House Name
Ambuja Group
N.A.
N.A.
Year Of Incorporation
1981
N.A.
Regd. Office
Address
District
State
Pin Code
Tel. No.
Fax No.
Email : shares@ambujacement.com
Plant Locations:
Corporate Office
Factory/Plant
Factory/Plant
Factory/Plant
Factory/Plant
Factory/Plant
Factory/Plant
Factory/Plant
Factory/Plant
Factory/Plant
Factory/Plant
Factory/Plant
Factory/Plant
Internet : N.A.
Muldwarka, Taluka Kodinar
Junagadh District - 362715
Gujarat - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Survey No.39/40, Magdalla Port Road, Village
Gavier, Taluka-Choryasi
Surat District - 395010
Gujarat - India
Phone :
Fax :
Email : N.A.
Internet : N.A
Village Moha, Near Ulwa Reti Bunder, Post. Ulwa
Raigad District - 410306
Maharashtra - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Rabriyawas
Pali - 306709
Rajasthan - India
Phone :
Fax :
Email : N.A.
Internet : N.A
P O & Village Dhulagori, P S Sankrali
Howrah District - 711302
West Bengal - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Panvel
Raigad District Maharashtra - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Village Lakeshwari, Pargana - Bhagwanpur, Tehsil Roorkee
Haridwar Uttaranchal - India
Phone :
Fax :
Email : N.A.
Internet : N.A
Village Kendua, P O Shrimantapur, PS Farakka
Murshidabad District - 742236
West Bengal - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
History
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 the 3rd largest cement 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 companys Ambujanagar plant. Handles ships with 40,000 DWT. It is also equipped to
export clinker and cement and import coal and furnace oil.
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 Indias 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 Indias 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
'Certificate of Appreciation' for Accident Free million man hour our worked - Gujarat
Safety Council Baroda 2009
Recognition
National Award for outstanding pollution control by the Prime Minister of India.
Economic Times - Harvard Business School Association Award for corporate excellence.
Key personalities:
1 N.S.Shekhsaria
2 Ajay Kapur
3 Rajiv Gandhi
4 Usha Sangwan
5 Nasser Munjee
6
Rajendra P. Chitale
Shailesh Haribhakti
Omkar Goswami
Haigreve Khaitan
1 Bernand Fontana
0
11 B L Taparia
1
Bernard Tever
Chairman
Managing Director
Company Secretary
Additional Director
Non Executive Independent
Director
Non Executive Independent
Director
Non Executive Independent
Director
Non Executive Independent
Director
Non Executive Independent
Director
Non Independent and Non
Executive Director
Non Independent and Non
Executive Director
Non Independent and Non
Executive Director
No.of Shares
6094461
780308553
465846612
139939205
98904258
14119941
11940610
1432138
60183
12870
% of Share Holding
0.39%
50.35%
30.06%
9.03%
6.38%
0.91%
0.77%
0.09%
0%
0%
Corporate Governance:
Companys Philosophy on Corporate Governance:
At Ambuja Cements, Corporate Governance has been an integral part of the way we have
been doing our business since inception. We believe that good Corporate Governance
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 Companys
ongoing contributions to the local communities through meaningful Corporate Social
Responsibility 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 stakeholders. The Company places great emphasis on values such as
empowerment and integrity of its employees, safety of the employees & communities
surrounding our plants, transparency in decision making process, fair & ethical dealings
with all, pollution free clean environment and last but not the least, accountability to all
the stakeholders. These practices being followed since the inception have contributed to
the Companys sustained growth. The Company also believes that its operations should
ensure that the precious natural resources are utilized in a manner that contributes to the
Triple Bottom Line.
The Governance Structure:
Ambujas governance structure is based on the principles of freedom to the executive
management within a given framework to ensure that the powers vested in the executive
management are exercised with due care and responsibility so as to meet the expectation
of all the stakeholders. In line with these principles, the Company has formed three tiers
of Corporate Governance structure, viz.:
(i) The Board of Directors - The primary role of the Board is to protect the interest and
enhance value for all the stakeholders. It conducts overall strategic supervision and
control by setting the goals & targets, policies, reporting mechanism & accountability and
decision making process to be followed.
(ii) Committees of Directors - such as Audit Committee, Compliance Committee, Capex
Committee and CSR Committee etc. are focused on financial reporting, audit & internal
controls, compliance issues, critical assessment & review of large capex and
implementation and monitoring of CSR activities.
(iii) Executive Management The entire business including the support services are
managed with clearly demarcated responsibilities and authorities at different levels.
(a) Executive Committee - The Executive Committee comprises of the Managing
Director (M.D.), the Dy. M.D. & Chief Executive Officer, the Business Heads and a few
Corporate Functional Heads. This committee is a brain storming committee where all
important business issues are discussed and decisions are taken. This Committee reviews
and monitors monthly performances, addresses challenges faced by the business, draws
strategies and policies and keep the Board informed about important developments
having bearing on the operational and financial performance of the Company.
(b) Managing Director - The Managing Director is responsible for achieving the
Companys vision and mission, mergers and acquisition, significant policy decisions and
all the critical issues having significant business & financial implications. He also ensures
implementation of the decisions of the Board of Directors and its various Committees. He
reports to the Board of Directors.
(c) Dy. M.D. & CEO The Dy. M.D & CEO is responsible for the entire operations of
all the regions, achieving business strategies, project execution and for the overall
performance and growth of the Company. He provides strategic directions, policy
guidelines and extends support to the Executive Committee Members and other
Functional Heads. He reports to the Managing Director and the Board of Directors.
(d) Business Heads - With a view to decentralize the powers and responsibilities and to
build leaders, the business operations have been divided into three regions, viz.
(i) North,
(ii) West & South
(iii) East.
Each region is headed by a Business Head, who is responsible for the day to day business
and related functions within their respective regions. The Business Heads report to the
Dy. M.D. & CEO.
(e) Unit Heads - Unit Head 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. He reports to Business Head
Financials:
Consolidated Balance Sheet
Dec '13
Dec '12
12 mths
Sources Of Funds
Total Share Capital
309.17
308.44
306.87
305.97 0304.74
309.17
308.44
306.87
305.97 304.74
0.00
0.00
0.01
0.09 0.00
0.00
0.00
0.00
0.00 0.00
0.00
0.00
0.00
0.00 0.00
0.00
0.00
0.00
0.00 0.00
0.00
0.00
0.00
1.34 0.24
Reserves
9,152.72
Networth
9,461.89
Secured Loans
7.08
11.44
11.34
Unsecured Loans
27.43
38.19
46.89
65.03 65.70
Total Debt
34.51
49.63
58.23
65.03 165.70
Minority Interest
0.71
0.84
2.46
0.00 0.00
0.00
0.00
0.00
0.00 0.00
0.00
0.00
0.00
-0.23 0.00
Total Liabilities
9,497.11
Dec '13
0.00 100.00
12 mths
12 mths
Gross Block
10,859.0
7
10,218.4
0
0.00
0.00
0.00
4,712.32
Net Block
6,146.75
5,950.77
697.50
523.68
487.52
930.71
2,714.44
Investments
1,713.54
1,580.93
806.04
621.11
722.44
Inventories
936.41
986.93
927.76
901.86
683.24
Sundry Debtors
235.13
220.54
247.76
128.18
152.20
2,344.98
2,260.17
2,073.18 198.51
116.86
3,516.52
3,467.64
882.43
934.16
768.65
422.38
Fixed Deposits
0.00
0.00
0.00
1,549.77 764.04
Application Of Funds
0.00
0.00
292.42
4,398.95
4,401.80
Deferred Credit
0.00
0.00
0.00
Current Liabilities
2,357.76
2,166.87
Provisions
1,101.87
1,442.43
3,459.63
3,609.30
939.32
792.50
566.06
207.25
-250.23
Minority Interest
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.13
0.00
Miscellaneous Expenses
0.00
0.00
0.00
0.46
2.71
Total Assets
9,497.11
8,847.88
Contingent Liabilities
2,313.51
2,046.65
576.90
755.81
821.85
61.21
57.05
52.56
47.88
42.45
0.00
0.00
Financial Ratios :
Dec
'13
Dec '12
Dec '11
Dec '10
Dec '09
2.00
2.00
--
2.00
2.00
--
--
--
16.04
12.66
11.83
63.51
55.33
48.18
--
--
49.39
44.92
62.9
5
63.10
63.42
63.61
17.8
7
25.25
23.07
24.55
11.98
18.77
17.36
18.97
19.44
17.86
19.30
21.09
19.25
19.88
21.07
17.86
19.39
12.74
14.12
16.83
12.74
13.92
16.83
10.6
3
59.4
6
Profitability Ratios
Operating Profit Margin(%)
Profit Before Interest And Tax Margin(%)
Gross Profit Margin(%)
Cash Profit Margin(%)
Adjusted Cash Margin(%)
Net Profit Margin(%)
Adjusted Net Profit Margin(%)
12.4
9
18.2
3
18.2
3
13.3
4
13.3
4
16.2
1
13.5
1
13.2
4
61.2
1
61.2
1
16.2
2
25.46
21.90
20.98
14.69
15.22
17.24
17.83
13.78
14.56
57.05
52.35
47.88
57.05
52.35
47.88
25.49
21.02
21.00
1.27
1.21
1.14
1.07
Quick Ratio
1.00
0.95
0.87
0.75
--
0.01
0.01
0.01
--
--
0.01
0.01
Interest Cover
23.0
7
28.72
33.29
31.86
0.00
0.01
0.01
0.01
35.97
40.46
39.82
24.73
32.54
34.90
30.4
7
27.5
5
9.82
9.92
9.24
9.19
40.3
4
41.83
45.60
52.58
9.82
11.21
10.38
9.19
0.85
0.96
0.89
0.85
0.97
1.11
1.06
0.93
1.00
1.15
0.88
0.85
--
--
15.51
19.91
--
--
5.97
5.98
47.6
3
29.13
20.53
10.12
14.9
2
13.79
19.49
20.01
--
--
--
--
--
23.47
19.88
20.25
--
--
--
--
49.86
46.45
36.61
34.63
34.06
28.01
50.9
0
36.7
2
48.0
8
62.7
5
0.02
58.91
48.49
56.65
69.84
63.29
68.21
0.02
0.04
0.04
Dividends Policy :
For the year ending December 2013, Ambuja Cements has declared an equity dividend of
180.00% amounting to Rs 3.6 per share. At the current share price of Rs 248.75 this results in a
dividend yield of 1.45%.
The company has a good dividend track report and has consistently declared dividends for the
last 5 years.
* As per the Profit & Loss account
Dividend declared
Announcement
Date
Effective
Date
Dividend
Type
Dividend
(%)
Remarks
14-07-14
30-07-14
Interim
90.00
05-02-14
12-02-14
Final
110.00
18-07-13
30-07-13
Interim
70.00
08-02-13
18-02-13
Final
110.00
18-07-12
30-07-12
Interim
70.00
31-01-12
13-02-12
Final
90.00
28-07-11
08-08-11
Interim
70.00
03-02-11
11-02-11
Final
70.00
23-07-10
05-08-10
Interim
60.00
05-02-10
18-02-10
Final
60.00
24-07-09
04-08-09
Interim
60.00
06-02-09
18-02-09
Final
50.00
(Revised)
25-07-08
08-08-08
Interim
60.00
01-02-08
14-02-08
Final
50.00
20-07-07
03-08-07
Interim
125.00
02-02-07
21-02-07
Final
40.00
20-10-06
02-11-06
Interim
75.00
18-04-06
04-05-06
Interim
50.00
30-07-05
17-08-05
Final
30.00
30% on the enlarged capital arising out of bonus issue in the rat
1:2.
19-04-05
05-05-05
Interim
60.00
28-07-04
18-08-04
Final
30.00
07-04-04
23-04-04
Interim
50.00
17-07-03
18-08-03
Final
40.00
07-04-03
07-05-03
Interim
30.00
02-08-02
14-08-02
Final
20.00
15-05-02
12-06-02
Interim
40.00
31-07-01
03-09-01
Final
50.00
16-08-00
30-08-00
Final
15.00
Gujarat Ambuja Cements has sold 11% stake in Ambuja Cement India Limited
(ACIL) to Holcim for Rs. 526.5 crores. Gujarat Ambuja owns 33% in ACIL. It has
exercised its put option for an 11% stake in ACIL and has sold 9.53 crore shares to
Holcim. GACL made a profit of Rs. 240.7 crores by selling these shares. After this
sale, Gujarat Ambuja owns 22% shares in ACIL and Holcim the remaining 78%.
Holderind Investments, a subsidiary of Holcim, currently holds 16.51% stake in
Gujarat Ambuja, while ACIL holds 9.93% stake in the company.
Ambuja cement Ltd plans to sell its 11.5% stake in ING Vysya Life Insurance
Ltd to Hemendra Kothari for Rs 190cr, valuing the company at Rs 1650cr.
The deal has been finalised and the parties will seek approval from IRDA soon.
Ambuja has been wanting to exit from the life insurance venture as its investment
was failing to yield dividends and the valuations were low. The promoter company,
ING Group, has also announced their intention to exit the insurance business globally
to focus on its core banking business.
Ambuja Cements Limited has acquired 85% stake in Nepal's Dang Cement
Industries for Rs.19.13 Cr.
Ambuja Cements is also in the process of acquiring additional 5% in Dang Cement
for Rs.1.13 Cr. With this acquisition, Dang Cement Industries has become a
subsidiary of the company.
Founded in 2003, Dang Cement holds limestone mining lease in Nepal. Limestone is
a key raw material for manufacturing of cement. At present, Dang Cement is not
carrying out any business.
Ambuja Cements has acquired 60% stake in Dirk India Pvt Ltd for Rs 16.51Cr.
DIRK India Pvt Ltd was started by UK based Dirk Group in 2000. In 2001, it got a 30
year contract for recycling of all Pulverized Fuel Ash(PFA) from Nashik Thermal
Power Station.
Dirk India set up a subsidiary-Dirk Pozzocrete (MP) Pvt. Ltd in 2002 to recycle PFA
into POZZOCREATE (a partial cement replacement product).
During the financial year 2010-11, Dirk India generated sales of Rs 55.40Cr and an
EBITDA of Rs 6.8Cr.
This is Ambuja's second acquisition in 2011. In June, it acquired 85% in Nepal's
Dang Cement Industries for Rs 19.13Cr.
With this acquisition, Dirk India Pvt. Ltd. and Dirk Pozzocrete (MP) Pvt. Ltd. have
become subsidiaries of the Company.
Products:
Products Offered:
Portland Pozzolana Cement (PPC).
Ambuja PLUS
The Alccofine Micro Materials
Research & Development
An Endeavour from one of the largest Cement Producers of India, Concrete Futures Laboratory is shaped
to be one of the most innovative and exhaustive place for Testing, Learning and Experiencing the Cement
and Concrete for the Architects, Engineers and Construction Community (AEC).Cement Concrete is the
most widely used and versatile construction material today. Due to urbanization, the need of building taller
structures is increasing in metro/mega cities. In the current scenario the need of AEC community is more
towards producing the High performance concrete. The materials used in concrete have also changed over
the last few years and some new materials have also been introduced in the existing concrete family. It has
been observed that the study of concrete behavior with locally available materials is lagging behind. This
requires R&D in local context.
What is NABL?
National Accreditation Board for Testing and Calibration Laboratories (NABL) is an autonomous body under
the aegis of Department of Science & Technology, Government of India. NABL has been established with
the objective to provide Government, Industry Associations and Industry in general with a scheme for thirdparty assessment of the quality and technical competence of testing and calibration laboratories.
Government of India has authorized NABL as the accreditation body for Testing and Calibration
Laboratories. NABL is not only for certification but also to ensure the competency of laboratory to carry out
the specified tests.
Sieve Analysis
DLBD
Water Absorption
Surface Moisture
Specific Gravity
Mortar Testing
V Funnel Test
U Tube Test
HolcimConeTM :
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 to assess
the workability and strength development of a concrete by testing its mortar.
HolcimBluTM :
Methylene blue (MB) test methods are standardized to quantify clay contamination in sand for concrete
production. HolcimBlu will raise the awareness on contamination which at the end will help us to learn
faster on how to overcome/solve clay issues.
HolcimShapeTM :
The objective of this test is to characterize the shape of sand, which is one of the main quality parameters
of sand. Therefore, the tests do not directly assess the water demand of the sand, but rather the particle
nature which together with other sand properties (gradation, clay content) influences the performance in
application.
facility to provide modular curing solutions to avoid the shrinkage cracks and an efficient curing of
concrete. This system also saves the water required for curing hence sustainable
Brand Loyalty:
Ambuja Cement enjoys great brand loyalty, as it is a premium brand having an edge in cost .It was the first
company to realize the potential of building a strong brand loyalty through television advertisements in 1984.
also, its advertisements with the slogan Ye deewar nahi tootegi capitalizes on an emotional connect with
the customers, thus leading to greater brand recognition & loyalty. it enjoys a market share of 9.41% in india,
second to ACC Cements, and the retention of market share can greatly be attributed to the brand loyalty that
Ambuja Cements maintain.
Brand Awareness:
Heavy adverstising through television commercials which create an emotional connect among the
masses.
During the Ganpati Bappa Festival in Maharashtra Ambuja Cement leads the advertising gamut
with hoardings and sponsorships thus increasing its brand visibility.
Its recognizes its dealers as a partner, rewarding them with gold coins and various promotional
offers.
It uses its long standing reputation to the utmost,with an approach of inspiring trust among the
customers.
Marketing :
MARKET DEVELOPMENTS
The Companys domestic cement sales in 2013 declined by 1.7% to 20.94 million tonnes
as compared to 21.31 million tonnes achieved in 2012. Total cement sales (including
exports) declined by 1.8% to 21.04 million tonnes as compared to 21.43 million tonnes
achieved in 2012.
REGION-WISE SALES VOLUME / GROWTH:
In the North region, domestic cement sales of the Company declined by 1.7% to 8.64
million tonnes in 2013 compared to 8.79 million tonnes in 2012. In the East region, the
Company achieved sales of 4.21 million tonnes of cement in the domestic market,
registering a decline of 0.2% over the previous year sales of 4.22 million tonnes. In the
West & South region, the Companys domestic cement sales in 2013 declined by 2.5% to
8.09 million tonnes as compared to 8.30 million tonnes achieved in 2012. Cement exports
in 2013 reduced further to 0.10 million tonnes as compared to 0.12 million tones in 2012
Distribution footprint:
The Company continues to develop and leverage its large and able network of around
8,500 dealers and 27,000 retailers across India. Their reach and penetration helps the
Company in core rural and semi-urban markets across the country. This, coupled with the
strong brand equity and efficient channel management, has significantly helped the
Company to withstand severe competition in an over-supplied market.
TheCompanysnetworkofports,bulkcementterminals and captive ships on the west coast
has supported a sustainable and strong market position in Mumbai, Surat and Cochin. The
Mangalore Bulk Cement Terminal that commenced its commercial operations in 2013
will further strengthen the Companys position and enhance its footprint in the South
region.
Marketing Systems:
The Company embarked on the Marketing and Commercial Excellence (MaCX)
programme to further sharpen its marketing, sales and distribution functions. This
ambitious programme is part of the comprehensive Holcim Leadership Journey (HLJ),
announced by Holcim management across the globe to deliver gains and create value in a
competitive environment over the next few years. MaCX aims to supplement in-house
skills with global expertise of Holcim and that of advisory firms, to revamp customer
interfacing functions by focusing on core value levers. This is an investment to future
proof the Company and to promote an environment of innovation and excellence.
Pricing :
Various prices across 6 different districts of Maharashtra a slight variation of prices are
present .
District
Price in Rs 50 per kg
Pune
279
Nagpur
289
Solapur
284
Ahmednagar
276
Mumbai
276
The major price variations over diffirent districts are due to the regional distributional patterns across the
cities.The variations in the demand and supply of the cement are taken into consideration even the
difference in local distributors .
Apart from these the prices keep signifying the variations throughout the year due to the changing demand
and supply patterns .
Discounts :
The discounts are given on bulk purchases as profit margins are less in the cement industry, discounts given
on small quantities to be purchased are not possible .Ambuja Cement being a premier brand have an edge
when it comes to cost because of their transportation system they have the cost advantage over other
competitors .
Promotion ;
Role of sales personel in promotion
The major customer base even today in the cement industry is the the household owner though the end
consumer purchase is influenced is the contractors, masons, architect etc .Thus to attract them the Gujrat
sales team hold seminars for contractors and masons.
They also interact with retailers and distributors who form the channel members representing the company
to the end customers. They act as a connecting link. They also act as a channel between the company and
the contractors.