Gujarat Ambuja - Redefining Operational Efficiency
 <<Previous
QUESTIONS FOR DISCUSSION:
1. Study the evolution of GACL from a small start-up to
a cement major over the years. How far do you think the company's success
can be attributed to its project location, design and implementation
decisions?
2. ‘GACL's cost management focus was the biggest factor responsible for its
success.'Critically comment on the above statement and examine the
company's approach to cost reduction and productivity enhancement. How did
this approach help it gain a competitive advantage and emerge a leader in
the commoditised industry?
3. Do you think that GACL's efforts were more driven by market compulsions
than a strategic cost focus? Will GACL be able to sustain its superior
performance in the years to come? Give reasons to support your stand.
EXHIBIT I
GACL - STATE WISE PLANT CAPACITY (in million ton)
|
State
|
Capacity
|
|
Gujarat
|
4
|
|
Himachal Pradesh/ Punjab
|
3
|
|
Rajasthan
|
1.5
|
|
Chhattisgarh/ West Bengal
|
2
|
|
Maharashtra
|
2
|
Source: www.ambujagujarat.com
EXHIBIT II
GACL – PROFIT & LOSS STATEMENTS(in Rs million)
 | | | |
| Period ended |
Jun-98
|
Jun-99
|
Jun-00
|
1-Jun
|
Gross Sales |
11,312.10
|
12,498.10
|
13,027.70
|
14,473.20
|
Excise Duty |
-1,581.30
|
-1,918.40
|
-1,854.20
|
-1,792.80
|
Net sales
|
9,730.70
|
10,579.70
|
11,173.50
|
12,680.50
|
Other income
|
348.1
|
307.4
|
3,094.70
|
153.3
|
Total income
|
10,078.90
|
10,887.10
|
14,268.30
|
12,833.80
|
Raw materials
|
323.6
|
324.3
|
419.4
|
535.2
|
Stock adjustment (Inc)/ Dec
|
-6.4
|
160.2
|
-116.5
|
-112.8
|
Cost of material
|
317.2
|
484.6
|
302.9
|
422.5
|
Employee cost
|
307.6
|
335.5
|
418.8
|
382
|
Power & fuel
|
2,739.40
|
2,404.90
|
2,785.80
|
2,963.70
|
Advertising/ promotion/ public
|
153.9
|
199.4
|
223.7
|
238.8
|
Freight & forwarding
|
1,291.70
|
1,811.50
|
1,706.60
|
1,926.90
|
Other expenses
|
1,741.10
|
1,831.00
|
2,042.70
|
2,260.20
|
Cost of sales
|
6,550.90
|
7,066.80
|
7,480.50
|
8,194.00
|
PBIDT
|
3,528.00
|
3,820.30
|
6,787.70
|
4,639.80
|
Interest & finance charges
|
1,077.60
|
1,084.80
|
987.1
|
1,340.80
|
PBDT
|
2,450.30
|
2,735.50
|
5,800.60
|
3,298.90
|
Depreciation
|
1,085.00
|
1,229.60
|
1,238.90
|
1,293.00
|
PBT
|
1,365.30
|
1,505.90
|
4,561.70
|
2,006.00
|
Provision for taxation
|
48.7
|
1.2
|
280
|
142.5
|
Extraordinary items/ Prior year adj.
|
-14.8
|
1
|
-3.2
|
66.2
|
Adjusted PAT
|
1,301.90
|
1,505.70
|
4,278.50
|
1,929.60
|
Dividend payout
|
485.6
|
569.8
|
677.5
|
810.7
|
Source: www.indiainfoline.com
EXHIBIT III - VARIOUS AWARDS WON BY GACL
2010, ICMR (IBS Center for Management Research).All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted
in any form or by any means - electronic or mechanical, without permission.
To order copies, call +91- 8417- 236667 or write to ICMR,
Survey No. 156/157, Dontanapalli Village, Shankerpalli Mandal,
Ranga Reddy District,
Hyderabad-501504.
Andhra Pradesh, INDIA.
Ph: +91- 8417- 236667,
Fax: +91- 8417- 236668
E-mail: info@icmrindia.org
Website: www.icmrindia.org
|
More Classifications...