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ULTRATECH CEMENT
UltraTech's inception can be traced back to the mid-1980s with the establishment of first
cement plant at Jawad in Madhya Pradesh.
Environmental Analysis
• Highly affected by the environmental factors
• Plants situated outside the city where the population rate is low or no population.
SWOT Analysis
Strengths Weakness
• India’s biggest cement company • Not operating /exporting in US market which is a
• largest exporter of cement clinkers huge market for Cement industry
• Annual capacity of 60+ millions tones • Brand awareness of Ultratech is lesser as compared
• Accounts to about 30% of the total Indian Exports to global players
• Has integrated plants, white cement plant and many • Has to work on positioning the brand as a
grinding units in India construction materials brand
Opportunities Threats
• Should enter the US market by mergers and • Faces strong competition from global players
acquisitions • Mergers and acquisitions involves high risk, so it
• Should do worldwide branding activities that would should be careful while entering new market
help the brand grow as a whole.
TOWS
Strengths Weakness
I
N • India’s biggest cement company • Not operating /exporting in US
Analysis
T • largest exporter of cement clinkers
market
E • Annual capacity of 60+ millions tones
• Accounts to about 30% of the total Indian • Brand awareness of Ultratech is
R Exports lesser as compared to global players
N • Has integrated plants, white cement plant and • Has to work on positioning the brand
A many grinding units in India
E X T E R N A L L
Opportunities
• Should enter the US market • Leveraging brand recognition in new • Investing into customer oriented
• Should do worldwide branding segments services and supply chain
activities.
Threats
• Faces strong competition from • Investing into R&D to thwart • Get out of the business and focus on
global players Capital Goods industry disruptors. growth areas
• Mergers and acquisitions involves
high risk
PORTER 5 FORCES ANALYSIS FOR ULTRATECH
he stake was further increased to a majority stake in 2003 thereby giving Grasim a pan-India presence
and an increased market share.
The stake was further increased to a majority stake in 2003 thereby giving Grasim a pan-India presence
and an increased market share.
The cement business of Grasim was demerged and vested in Samruddhi Cement Limited in May 2010,
with Samruddhi Cement Limited consequently being amalgamated with UltraTech Cement Limited in
July 2010.
3. MATURITY
The company has an installed capacity of 96.5 Million Tonnes Per Annum (MTPA) of grey cement.
UltraTech Cement has 19 integrated plants, 1 clinkerisation plant, 25 grinding units and 7 bulk terminals.
Its operations span across India, UAE, Bahrain, Bangladesh and Sri Lanka. UltraTech Cement is also
India's largest exporter of cement reaching out to meet the demand in countries around the Indian Ocean
and the Middle East.
In the white cement segment, UltraTech goes to market under the brand name of Birla White. It has a
white cement plant with a capacity of 0.56 MTPA and 2 WallCare putty plants with a combined capacity
of 0.8 MTPA.
With 100+ Ready Mix Concrete (RMC) plants in 35 cities, UltraTech is the largest manufacturer of
concrete in India.
4. DECLINE
A focus on new product development, productivity enhancement, reduction in energy
consumption and environmental impact have been major drivers for R&D at UltraTech.
Has developed several innovative products to improve the sustainability quotient of the
construction value chain while also providing multiple benefits to end customers.
UltraTech Premium. It is a Portland composite cement which requires 57% less clinker,
52% less thermal energy and 34% less electrical energy in comparison to Ordinary Portland
Cement (OPC) for its production. The CO2 emission rate of UltraTech Premium is 56%
lower than that of OPC.
In 2018, UltraTech filed four patents for products which require less natural resources such
as fossil fuels and limestone as compared to conventional products. These products will
eventually help to save water and utilize waste from other industries
COMPETITIVE ANALYSIS
The Indian cement industry has a large number of fragmented firms. There is also a dearth of new
players as incumbents have already procured key raw material sources, like limestone reserves on long-
term leases.
Holcim Group
Lafarge Group
ACC
J K Cement
Value chain analysis helps in identifying sources of competitive advantage in a systematic manner.
UltraTech's Sources of Competitive Advantage
A detailed analysis of the cost structure (Exhibit 1) reveals stark differences between ACC and
UltraTech in raw material and power costs.
A comparison of raw material costs showed that UltraTech had a huge advantage (nearly double) over
ACC due to greater access to better quality quarries.For the same quantity of cement produced,
UltraTech spent less on mining, and got better quality limestone, than ACC.
A comparison of power costs revealed a different picture with ACC enjoying a cost advantage over
UltraTech
This is due to the higher cost of Naphtha and Fuel Oil based Power Plants used by UltraTech (in
addition to coal fired plants) while ACC used only coal based plants. UltraTech wanted to spread the
risks of prices and availability of fuel, but the strategy backfired as coal remained a much cheaper
alternative.
Vision
Mission
To deliver superior value to our customers, shareholders,
employees and society at large.
BCG Matrix
Pricing
• Priced according to the demand of the product
• Ultratech Readiplast-A premix plaster that gets ready by only adding water
• Ultratech Fixoblock-A Unique thin layer mortar that perfectly binds blocks
with a thin layer
Ultratech Services
• Ultratech Building solutions-UltraTech Building Solutions is a
new concept in the Indian construction industry. It is a one-
stop shop designed on the 'Plan, Build and Support'
philosophy, which offers home building solutions right from
planning to completion. It seeks to enhance the shopping
experience of customers and strengthen existing trade
partnerships, by offering a wide spectrum of end-to-end home
building solutions, high-quality construction materials and
value-added services.
Segmenting
Identifying Macro- Selecting Target
Marketing Research Profitability Analysis
Segments Market
2. Differentiated Marketing
3. Undifferentiated Marketing
Positioning
Steps for developing Positioning Strategy:
• Product Variables
• Service Variables
• Image Variables
EVALUATION AND CONTROL-7S MODEL
• Strategy: The strategy adopted by Ultratech Cements in order to stay ahead of competition is
by adopting latest technology with efficient and progressive teamwork in an environment of
good governance and professionalism.
• Structure: Hierarchical structure as any other alternative is difficult to adopt due to huge size
of the company.
• Systems: There is a wide range of systems that facilitate day-to-day business such as employee
recruitment and selection system, team development and orientation system, transaction
processing systems, customer relationship management system, business intelligence system,
knowledge management system and others.
• Shared Values: Common purposes of an organization, Core values, vision and corporate
culture on which the organization is based.
• Style: Ultratech Cement has adopted leadership management style overall and proposed
changes are considered.
• Staff: Ultratech manufacturing employees are highly trained to operate heavy machinery and
regular trainings are conducted in order to keep the staff updated.
• Skills: A Culture of Meritocracy. Performance is at the heart of UltraTech's work culture. The
Internal Recruitment System. Transparency and Responsiveness. Excellence
through Learning. Cultural Diversity. Fun at Work. Employee Value Proposition.