UTKAL UNIVRERSITY, VANIVIHAR,

BHUBANESHWAR
ACADEMIC SESSION 2018-21

A PROJECT REPORT ON
“SWOT ANALYSIS OF CEMENT INDUSTRY”

SUBMITTED BY GUIDE BY
NAME:-SATYAJEET SAHOO MR.NANDANKUMAR JENA
U.U ROLL NO:- 1803010190400025 LECTURER IN COMMERCE
U.U REGN NO:- 1803010190400025
COLLEGE ROLL NO:-BC18-031

SIGNATURE OF EXTERNAL SIGNATURE OF INTERNAL

SIGNATURE OF STUDENT SIGNATURE OF PRINCIPAL

1
 KALINGA COLLEGE OF COMMERCE
(Recognised by dept. of higher education, govt. of Odisha) (Affiliated to CHSE &
Utkal University)
(1038, Baligundi, Balianta, Bhubaneswar, Odisha) Phone: 0674-2343491, 2343591

CERTIFICATE
This is to certify that the project report entitled “SWOT ANALYSIS OF CEMENT
INDUSTRY” is a bona-fide work of SHAILJA RANI Bearing University Roll
no.1803010190400026 towards the partial fulfillment of the B.COM degree in
COMMERCE HONOURS, KALINGA COLLEGE OF COMMERCE,
BHUBANESWAR.

This also certifies that he has completed the project under the supervision of Mr. Nandan
Kumar Jena,(HOD of Commerce, Kalinga College of Commerce)

Signature of External Examiner Signature of the guide

MR. NANDAN KUMAR JENA
HOD,
Kalinga College of Commerce

Signature of the Signature of the Head of the

Student NAME- institution (PRINCIPAL)
Satyajeet sahoo MR. BRAJA BANDHU MAHANTA
Roll no.- BC18-001 Kalinga College of Commerce
Kalinga College of
Commerce

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 ACKNOWLEDGEMENT

It is my proved privilege to release the feelings of my gratitude of several persons

who helped me directly or indirectly to conduct this project work.

I acknowledge with sincere gratitude and deep sense of reference to Mr. NANDAN
KUMAR JENA for his inspiration, co- operation to prepare this project work.

I also thank all my friends who have more or less contributed to the preparation of
this project report. I will be always indebted to them and grateful to my parents who
support me morally and financially.

NAME: SATYAJEEET SAHOO

ROLL NO.-BC18-031
UU. REG NO.:1803010190400026
+3 3RD YEAR (6TH SEMESTER)

3
 DECLARATION

I do hereby declare that the report entitled “SWOT ANALYSIS OF CEMENT

INDUSTRY“is an authentic piece of work and submitted as a partial fulfillment of the
requirements for the degree of “B. COM” under the guidance of MR. NANDAN KUMAR
JENA OF KALINGA COLLEGE OF COMMERCE. This report has not been submitted
for the awards of any other degree elsewhere in part or in full.

NAME:SATYAJEET SAHOO
ROLL NO:BC18-032
UU. REG NO:1803010190400026
+3 3RD YEAR (6TH SEMESTER)
CHAPTER – 1

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1.1. INTRODUCTION

SWOT analysis is a tool used for strategic planning and strategic management in

organizations. It can effectively to build an organizational strategy and competitive

strategy. In accordance with the system approach, organizational are who’s that are

in interaction with their environment and consist of various sub-system. In this

sense, an organizational exit in two environments, one being in itself and the other

being outside. It is a necessity to analyze these environments for strategic

management practices. This process of examining the organization and its

environment termed SWOT analysis.

Figur

e (1)

SWO

Anal

ysis

Internal factor External factor (i)Opportunity

(i)Strength (ii)Threats

(ii) Weakness

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SWOT analysis is a simple but powerful tool for sizing up an organizations

resources capabilities and deficiency it’s market opportunities and the external

threats to its future. The acronym SWOT stands for strengths, weakness,

opportunity threats. The SWOT analysis also referred to as SWOT matrix, can also

be formulated as TOWS an analysis or TOWS matrix.

6
SWOT analysis is a strategic planning framework used in evaluation of an organizations, a

plan, a project or a business activity. SWOT analysis is therefore a significant tool for

situation analysis that helps the manager to identify organizational and environmentalfactors.

SWOT analysis has two dimensions, internal and external. Internal dimension includes

organizational factor, also strengths and weakness, external dimension includes

environmental factor and also opportunity and threats.

SWOT analysis is a process that involves four area into two dimensions. It has four

components and threat strength, weakness are internal factor and attributes of the

environment. SWOT analysis is a typically drawn out in a four-quadrant box that allows for a

summary that is organized according to the four-section title.

A SWOT analysis is a method used in business planning. One such analysis, A

SWOT analysis, examines “strengths, weakness, opportunities and threat” within a particular

business or field. The cement company is an example of a field for which a SWOT analysis

would enhance marketing management strategies.

Today most organization engage in strategic planning. This is a way to help an

organization be more productive by helping guide the allocation of resources in ordered to

achieve goals. It is a strategic management tool. In other words, it is a part of strategic

management in fact, strategic planning is a key to successful strategic management.

Strategic management is acontinuous process of creating, implementing and

evaluating decision that enable an organization to achieve its objective strategic management

allows an organization to be more productive than reactive in shaping its own future. It

allows an organization to initiate and influence rather than just respond to activities and thus

to exert control over its own destiny. Strategic management consist of the analysis, decision

and action an organization vender take in ordered to create and sustain competitive

7
advantages. The strategic management process is a sequential set of analysis and choice that

can increase likelihood that an organization will chose good strategy that is the generates

competitive advantages. It begins with vision. Vision is the picture of future. It describes the

desired future position of the organization. The second step of strategic management process

is mission an organization missions is itslong-term purpose. Mission define both what an

organization aspire to be in the long run what it wants to avoid the meantime. Objective are

the third step of strategic management process. Objective are concrete goals that an

organization seeks to reach. The next phase of the strategic management process is external

and internal analysis also called SWOT analysis. By conducting an external analysis an

organization identify the critical threats and opportunities in its competitive environment. It

also examines how competition in its environment is likely to evolve and what implication

that evolution has for the threats and opportunity an organization is facing. While external

analysis focuses on the environmental threats and opportunity facing an organization internal

analysis helps the organization identify its organization strength and weakness. It also helps

an organization understand which of its resources and capabilities are likely to be source of

competitive advantages and which are likely to be source of such advantages. Based on

SWOT analysis organization can choose the appropriate strategy. Strategic choice is

associated with vision, mission, objective and the external and internal analysis of the

organization an organization is waiting to make strategic choice. This is to say that an

organization is able to choose it’s “theory of how to obtain competitive advantages”. The

next step of strategic management process is implication of strategic choosing a strategy

means nothing if that strategic is not implemented. Strategy implementation occurs when an

organization adopts organizational policies and practices that are consistent with its strategy.

SWOT analysis is an analysis technique that has a general prospective and present general

solution. Details and specific issue are not the focus on SWOT analysis but the other analysis

that would follow in this sense, SWOT analysis is a

8
road map that guides one from the general to specific. SWOT analysis is an interaction

analysis that makes macro evaluation possible as an analysis tool SWOT provides the

opportunity to focus on positive and negative accept of internal and external environment of

the organization in other words the elements in this environment that add plus and minus

value all together in a relaxed perspective. In this regard, it is also possible to describe SWOT

analysis as “two by two matrix” SWOT analysis can help organizational management to a

cover opportunity to take advantage. By understanding weakness, threats can be managed and

eliminated to examine an organizational and its competitors can be formulated.

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HISTORY OF CEMENT

In 1914, the first licensed cement manufacturing unity in India was set upby the India

cement company limited. With the boom in the economy growth rate of India the cement

company is seeing a great future. India has now become the second largest cement producer

in the word after china with a total company of 151.2 million tones and 300 mini cement

plants. Further growth in India cement industry is expected in the coming years. It is expected

that by FY12, the cement production capacity will rise of to 262.61 million tones cement is

one of the core industries which plays a vital role in the growth and expansion of a nation. It

is a basically a mistake of compounds. Consisting mainly of and elements of calcium, formed

out of calcium outside silica, aluminum, oxide and iron. The demand for cement depends

primary on the peace of activities in the business, financial, real-estate and infrastructure

sector of the economy. Cement is considered preferred building material and is used

worldwide to all construction, as well as for creation of infrastructure like ports, roads,

powerplant etc. Indian cement industry is globally competitive because the industry has

witnessed healthy trends. Such as cost control and continuous technology upgradation. The

Indian cement industry is extremely energy intensive and is the third largest user of coal in

the country. It is modern and uses latest technology which is among the best in the world,

also industry has tremendous potential for development as limestone of excellent quality is

found almost throughout the country. The first ever reference of cement production. In India

is recorded in George watt published in 1889, which stated “Portlandcement was being made

in Calcutta from argillaceous canker, “However the first organized attempt to manufacture

the cement was made in 1904 by the madras based south India industries limited but this

venture has failed. It was in October 1914 that the cement produced at Porbandar in Gujarat

by Indian cement corporation limited saw the eight of the day. It had an installed capacity of

1000 tons per annum.

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COMPANY PROFILE

Here I consider the top 3 growing cement companies in India. The top3 cement

company are as follows: -

(1) Ultratech cement ltd

(2) ACC ltd

(3) Ambuja cement ltd

And we have to analyze the SWOT analysis of top 3 cement companies in India and

SWOT analysis shows strength, weakness, opportunities and threat of the top3 cement

companies.

Ultratech cement company is one of the top cement companies in India according to

the data 2020 the total plants of UltraTech cement in India is 22. The first cementunit was set

up by Ultratech cement at Porbandar in 1914 with a capacity of 1000 tons per annum. The

Aditya Birla group is the part of UltraTech company and the 10th largest cement producer in

the world and 4th largest in Asia it was incorporated on 24th august 2000 as Ultratech cement

ltd. It is the second biggest cement company in India and largest exporter ofcement.

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 Acc ltd is one of the largest producers of cement in India it’s a register office is called

cementhouse and its located in koreroed Mumbai it is otherwise known as associated cement

companies ltd it is incorporated on 1auguest 1936 the co of acc ltd is Neeraj Akhoury.

Number of employees in acc ltd is 10000. The historical part of acc ltd is very inters tenting.

It was in the year 1936 when 10 cement manufacturing company come under one umbrella.

Acc cement has 9000 almost dealer across the country there are 14 plants in all over the

country. It deals in the various product of acc cement. It has wide distribution network which

makes it possible for the company to rich such huge people. The company believes that

economic growth and environmental protection can be achieved in parallel the company not

only deployed eco- friendly equipment.

Ambuja cement formally known as Gujarat cement ltd. It is an Indian measure cement

producing company. It is commenced cement production in 1986. The founder of the industry

is Suresh Kumar neotia. The groups market cement and clinker both domestic and export

market. The cement industry was incorporate on 1983. The headquarter of Ambuja cement

ltd is Mumbai, Maharashtra. In 2006, global cement measure Holien acquired management

control of Ambuja cement ltd. It has annual revenue of 76378 million rupees. Ambuja is the

most profitable company in India. It is the third largest cement company in India. With an

annual plant capacity of 16 million tones.

A SWOT is a method used in business planning. It is a summary of the company's current

situation. the strength and weakness of a company are identified, along with the opportunity

and threats in its environment. The SWOT analysis allows the current state and future

potential of company to be evacuated. If the strength and opportunity outweigh the weakness

and threat, the company is in a good position. SWOT analysis can also be used to build

strategies for the future by considering how weakness can be turned into strengths, and how

threats can be turned into opportunities.

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 CHAPTER – 2

2.1 Literature review

Lawrence G Fine (2009) define swot as “an acronym for strengths, weaknesses,

opportunities and threats SWOT is used to access a business or a proposition. This should not

be restricted to business you own, but also to use it for a competitor business”.

As Kotler and Armstrong (2011) point out that SWOT is a method for “analyzing the

internal and external environment of an organization”. Through the recognition and

evaluation of its strength, weaknesses, opportunities and threats (SWOT). SWOT models

necessitates a concentration of the findings of an internal and external assessment that “draws

attention, from a strategy respective, to the critical organizational strength, weaknesses and

the opportunities and the threat facing the organization”.

Emet gruel (2017) in his article “SWOT analysis a theoretical review” had studied SWOT

analysis in a historical theoretical, time frame perspective which plays an important role in

the field of marketing, public relation advertising and in any field of requiring strategic

planning and found SWOT analysis which has been used over the last 50years of strategic

management is a valuable technique for planning and decision making. In the strategic

management process a number of analysis and technique are used to achieved long term goals

of organization.

Mukesh Kumar Upadhyay (2015) in his article SWOT analysis of cement industry in

Chhattisgarh had studied the cement sector notably plays a critical role in the economic

growth of the country and its journey towards. Conclusive growth cement vital to the

construction sector and all infrastructural projects. The construction sector constitutes 7

percent of the country’s gross domestic product (GDP). The industries occupy an
13
important place in the

14
Indian economy because of its strong linkage to other sector such as construction,

transportation, coal.

AKCA (2006) used SWOT for assessment of rural tourism in turkey. As a result, turkey has

an important rural tourism potential. Shaderuan district is located on the south western region

of Southstar township. Khuzestan provenience of iron. The total number of rural areas in his

district is 60. Nouthless the reason for selecting this area for research is the significant role, it

plays on satisfying food demand of the society.

Ritu Paliwal (2006) in his article “EIA practice in India and its evaluation using SWOT

analysis” had studied to environmental impact assessment (EIA) has been formally introduce

in 1994 it relied on the institutional frame work that has a strong supporting legislative,

administrative and procedural set up. Both central and state authority together are sharing the

responsibility of its development and management. A strength, weaknesses, opportunity and

threat (SWOT) analysis taken up in this article has suggested that there are several issues that

meet to be addressed.

LEE (2011) has used SWOT analysis the comprehensive strategy of the over all condition

around the Korean auto mobile industry by analyzing its key areas. While, the porters five

forces model has used to competitive analysis Korean auto parts industry. The research aims

to give some suggestion for Korean auto mobile industry continuous growth in the global

market.

SHINNO (2006) has conducted SWOT analysis to create effective industrial strategy

planning for the machine tool industry which can be carried out by applying the proposed

method. The SWOT key words were collected from the related research reports published on

the machine tool industry in japan. In ordered to proposed quantitative SWOT analysis, the

AHP method is combined into weighted score state in SWOT analysis.

15
DHARMARAJ (2011) has conducted SWOT analysis on car industry. The study aims to

cover the important pre-purchase and post purchase behavior of consumer relating to the car

buying decision. The method used to SWOT analysis through analysis of fried man to find

the more influencing factor towards the car manufactures and service provided by the dealers

to determine perceptual ranking. The identification of SWOT component was limited to then

pre- purchase and post behavior of consumer in car buying decision.

MILOSEVIC (2010) has conducted SWOT analysis to identify potential risks both the

investor and the contractor that are facing current market economy, and when private interest

provides significant financing, also time and budget limitation and construction. This

resource should be SWOT analysis component for the point of view both the investor and the

contractor in the planning, contracting and construction phase of project.

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 CHAPTER – 3

3.1 OBJECTIVE OF THE STUDY

The article takes the following is its main objective:

1) define the end state or objective: In our professional lives this might be earning a masters

degree , professional registration, or launching our own company. Work on end state until you

can clearly articulate what you want in no more than 8 words

2) Strengths: These will be your characteristics giving you an advantage over others in your

organizations , career field or speciality

3) WEAKNESS: Counter to the previous, these are your characteristics placing you at a

disadvantage relative to others.

4) Opportunity: These are the external knowns that increase your chances in achieving your end

state.

5) Threats: These are the outside elements conspiring to keep you from achieving your

objectives. Threats consist of such things as procrastination , fear of failure

17
 CHAPTER – 4

4.1 RESEARCH METHODLOGY

For purpose of presence study the data pertaining to the major cement plant are

chosen for thestudy located in India.

Here I considered the top 3 cement companies in India the companies are as follows: -

(I) Ultratech cement ltd.

(II) ACC cement ltd.

(III) Ambuja cement ltd.

The presence study heavily relies upon secondary source of data which are collected from

theannual report, different book, various article, official website of the company. The

companies are analyzing through SWOT analysis technique. Here I considered 3 years of

data of among companies 2015, 2016, &2017.

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 CHAPTER - 5

ANALYSIS

ULTRATECH CEMENT STRENGTHS

Production: -

The company’s production facilities are spread across 11 integrated plans, one white

cement plant, 12 grinding units, and 5 terminals – 4 in India and one in Sri Lanka.

High quality 17.64Mn. ton cement production in 2015-16. Production is increasing

annually.Annual production capacity of 23.10 million tones.

Use of high-end equipment such as the Gamma Metrics Machine and the X-ray

analyzer ensures that each product passing out of Ultratech manufacturing facility adheres to

global standards of quality and performance.

Logistics: -

Can directly deals with the limestone tenders and thus the middle man do not affect its

cost.Use the local transporters which provide the efficient transportation cost.

Plantation:-

Ultratech manufacturing plant uses ultra-modern technology and imported machinery. Company’s Unit

at Kovaya is the only unit in this sector in India to have a desalination plant. It is used for meeting the

water needs of the plant and the colony. The waste gases from the cooler are used in the desalination

plant. The Ultratech cement manufacturing the greenbelt at our units is simply awesome and is

surrounded by trees all around. At some points, you cannot even see the skyline. Only the leaves and

the flowers and hear the cacophony of the birds

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Company’s CSR (corporate social responsibility) activities extend to 127 villages, in

proximityto its plants, across the country.

Brand positioning:-

The Aditya Birla group the eighth largest cement player in the world.

Ultratech’s product Include ordinary Portland cement, Portland pozzolana cement and

Portlandblast furnace slag cement.

The company export over 2.5 million tones per annum, which is about 30 percent of

the country’s total exports.

Ordinary Portland cement is the most commonly used cement for a wide range of

applications.These applications cover dry-lean mixes, general-purpose ready-mixes, and even

high strengthpre-cast and pre-stressed concrete.

OPC is used for applications, such as commercial buildings, industrial constructions,

multi storied complexes, cement concrete roads and heavy-duty floors.

PPC cement is used for big construction like dam and thermal power plant.

Distribution channels:-

The company has a network of cement. Ultratech distribution network is very widely spread out in the

country with over 5500 dealer and 30000 retailers.

Human Resources:-

Total number of employees in company as on 31st march, 2016 was 4481 employees.

Ultratech has won the best employer award in 2017.

Company continuously strives to foster a culture of high performance. Management has

infused a lot of rigor and intensity in its people development processes and in honing skill se

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 The performance management system at Ultratech cement ensures that performance

and achievement do not go unnoticed.

Ongoing learning, refreshing HR system in line with global benchmarks, aligning

rewards an recognition with performance, have enabled company sustain its reputation of a

meritocratic organization.

Its HR processes are absolutely aligned to organizational goals.

It provides an opportunity to the employees to monitor their progress and develop into

completeprofessionals.

The group’s corporate human resources function has played and continuous to play an

integralrole in company’s talent management processes.

The cornerstone of our performance management system is the appraisal system.

Individual performance targets in the form of Key Result Areas (KRAs) are set at the

beginning of the year through consultation with the reporting managers.

Finance: -

Consistent revenue growth.

Gross sales increase from 7160cr. To 7729cr. (from year 2015to2016)EBIT increase

from 1487cr. To 1706cr. (from year 2015to2016) PAT increase from 977cr. To 1093cr. (from

year 2015to2016)

WEAKNESSES

Raw materials: -

Not available in all the places.Losses of raw material.

Products:-

High cost of branded products.Operations

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 High power/ fuel costs:-

Required efficient maintenance for the wastes. Raw material inventory required due to perishable of raw

material.High inventory handling cost.

Human resource: -

Due to openness in the organization work culture is very informal that will not suit for

bettermanagement in corporate.

Insufficient man power.Marketing:-

Lack of awareness program for consumer due to low promotion mix. Lack

of marketing mix.Delay in supply.

Health:-

Highly dusty environment at the time of dumping the cement is hazardous for health.It affects

human’s respiratory system adversely.

OPPORTUNITIES:-

With the low per capita consumption of cement in India -102 kg compared to the global

average of 260 kg and the emphasis on infrastructure development, Ultratech has ample

opportunity toride the growth curve.

It can develop new marketing area.

It can sign MOUs with government regarding supply of cement for government work.

Maintain the position of competition in the market.

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 Institutional market like corporate and offices, school society complexes are growing

in large scale, which will increase the requirement.

People are opting for more stable structures and intensive use of cement is taking

place, even government is spending heavily on infrastructure projects. Thus, this is the right

time to fully tap these markets

As Indian core industry is also growing at the rate of nearly 10% per annum it is

having a goodfuture.

Foreign direct investment in infrastructure sector going to increase in coming years,

which willincrease the demand of cement.

Roads are undergrowing through the transformation process through which the

traditional method of road building will be replaced by modern concrete road

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 THREATS

Large number of players in cement industry makes it more competitive for ACC to

carefullyprice its product and at the same time satisfy its dealers and customers.

Cheep priced brand are grabbing rapidly a large chunk of lower income customer

base.

Players such as Jaypee Cement, prism cement, and Birla cement. ACC cement are

eating upconsiderable market share.

Due to India’s exponential growth many new international cement companies are

expected incoming years which will bring a tide of change and can start price war.

Government intervention to adjust cement prices.

Transportation is scaling high; bottleneck due to loading restriction.

Coal prices climbing up industry players say current shortage of coal in the country.

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 ACC CEMENT

STRENGTH

Solid brand equity: -

Winning the super brand award multiple times is itself an achievement for ACC. ACC

won the award in 2016 as well as 2017, show casing that their customers are happy with them

and the brand is trust worthy in the ultimate sense. In the cement company ACC cement is

always touted as one of the top 3 brands Ambuja, Ultratech and ACC.

Awards: -

All cement has been at the fore front of winning awards. It is already an iso 9001

certified company recognized globally for its manufacturing practices. For the same, ACC has

won the golden peacock award for quality management as well as the green marketing award

for environmentally responsible manufacturing.

Far and wide distribution network: -

Acc today boasts of dealers and distributors close to 9000 across India. This far and

wide distribution network ensures that ACC reaches all corners of India.

Numerous CSR initiatives: -

ACC is known to do several CSR activities. One of them is the ACC scholarship

which was started in February 2016 and is an excellent initiative. They have their own HIV

25
and AIDS treatment centers and regularly promote socially responsible activities by releasing

newsletters every quarter. ACC cement is also associated with united nations global impact

initiative for continuous improvement across the world.

Maximum manufacturing plants: -

ACC has the highest number of manufacturing plants which are close to 17 whereas

Ultratech and others have lesser.

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WEAKNESS

Advertising is poor: -

Ambuja with its BTL ads is taking away the market rapidly. Recently Ambuja did an

ATL ad with the Great Khali (WWE) and the ad was appropriated all across.

Similarly,Ultratech is known for its branding with the tagline “engineers Ki pasand”. Over

all, even though the manufacturing strength of ACC cement is strong, the advertising and pus

strategy is weak.

Losing brand equity: -

Although ACC cement was the first brand to win the super brand award in 2015 and

2016. Ultratech won the same award in 2017. This shows that Ultratech has won the brand

equity which once belonged to ACC cement and the same is visible in statics.

Presence in India only: -

ACC is restricted with its presence in India and hence it faces competition from

Ultratech which is exporting cement in huge quantity with exports Ultratech can increase its

turnover to a good percentage.

Availability: -

Many dealers complain that ACC has such good tie up with corporates that during

summers when there is massive construction going on most cement goes to builders and the

dealers are not able to sell. On the other hand, Ultratech has a constant presence across the

year and hence they favor Ultratech, which has constant supply. Over ACC which various in

its supply quantities.

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OPPORTUNITIES

India growing in infrastructure: -

One of the major advantages of ACC cement is that it is leading board in the cement

industry which is itself growing due to increasing demand of infrastructure in India. With the

rise in population and the rise in economic conditions, this demand will not lessen anytime

sooner.

Brand activity: -

By investing in branding activities for 1 or 2years ACC cement can easily gain back

the market share as well as the brand in India. Sure, it faces competition by Ultratech, but

Ultratech is a recent company where as ACC has the heritage in India to support it.

Cement roads: -

One of the most contributing factors to the growth of ACC cement will be its one

product ready mix concrete. Because its government initiative to build cement roads. RMC is

more in demand and ACC is a brand to known to be a pioneer in RMC.

Export: -

Its weakness can become its strength. ACC is already known for its quality in

manufacturing. It can use the same strength to start exports across the world which will helps

its over an turnover and increase bottom line.

Government tie ups: -

28
 The more government tie ups it has, the more the company will grow.

THREATS

Market is become crowded: -

ACC not only has to look at Ultratech and Ambuja cements. It also has to look Birla

white, Binani, Ramco companies coming up. Where ACC majorly had to worry about a

couple

29
 of players in the market a decade back, the market has suddenly opened to multiple companies.

Price competition: -

Once a company enters price competition its bottom line drops and the same is the

threat to ACC. Due to the number of brands available ACC has to enter price competition

which is affecting its bottom lines.

Market share: -

ACC and Ambuja are fighting for the 2nd level but both of them might lose market

share to these small and regionals players. Because they are regional and focused, these

players can become strong in their regions.

AMBUJA CEMENT

STRENGTH

Leading cement manufacture in India: -

Ambuja cement has been one of the leading cementsmanufactures in India. Even

though there has been significant capacity addition in the industry and a slow demand growth

in India.

Strong dealer network: -

Ambuja cement has a strong dealer network, which has helped the company to with

stand intense competition.

Extremely strong in west: -

The company has a very strong network on the west coast which has supported sustainable

strong market position in Mumbai, Surat and Cochin. There are pockets which are covered

majorly by Ambuja cement only.

30
Cost advantages through infrastructure: -

Ambuja has made its processes more efficiently and soured low priced inputs through

which it has been able to achieve a cost advantage.

Excellent financial backing: -

Ambuja cement is known to be a financially sound company. Its financial resources

were further increased when HOLCIM invested in Ambuja.

Marketing consistency: -

There are two ads of Ambuja which are legendary. First is the tagline “Iss cement

mein jaan hai” which caught the attention of the customer all across. The second was the

marketing campaign with the Great Khali which said that only Ambuja cement could make

homes that do not get destroyed even for Khali. The brand has picked the quality of strength

very well and portrayed it regularly and consistently.

WEAKNESS

Heavily dependent on India market: -

Ambuja been geographically concentrated depending heavily on the Indian market for

its revenues. In financial year 2015, the company earned 99.5% from the Indian market.

Lack of product diversification: -

Unlike many competitors, Ambuja does not have diversified product range. The

reduces its potential to expand its market share.

31
Known more for small works: -

While Ultratech focuses on large contracts and huge buildings, Ambuja is known more

for repair works and hence it loses out its brand image where the builder lobby is concerned.

32
Limited number of countries: -

Ambuja cement exports its cement to a limited number of countries as compared to its

global competitors.

Cement and concrete: -

It deals primarily with cement and concrete while global players manufacture other

construction material along with cement to provide greater portfolio to the customers.

OPPORTUNITIES

High growth in cement industry: -

India is the second leading cement producer in the world. The county’s cement

production is expected to grow at high speed. This creates an opportunity for Ambuja to tap

the demand created.

Investment on infrastructure to grow: -

The investment in infrastructure is expected and has this creates demand for cement in

the country. The planning commission had predicted an investment of one trillion dollars

during the 12th five- year plan.

Benefits due to GST: -

Cement industry is going to be benefited with GST as overall taxation going to drop

from current 25% to about 18%. Also, logistics cost is also to be decreased by GST.

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Make in India: -

With the government initiative to increase production in India Ambuja being a core

India company, can see many advantages.

34
Increase production: -

The cement industry runs on the basis of “who can produce the most”. As on date,

Ultratech has the highest production capacity. But even Ultratech runs out of supply at times

and the demand is high. Thus, an increased production can help the brand reach new heights.

Buying of share: -

Ambuja cement is planning to buy share from HOLCIM that would strengthen the

brand as a Indian brand and it would help the brand to grow in the country as Indian

customers would psychologically.

THREATS

Litigation for cartelization in the industry: -

After the complaints from builders association of India (BAI), the competition

commission of India (CCI) published an order to stop cartelization in the cement industry.

Intense competition: -

There is a lot of competition in the cement industry for Indian as well global companies.

Thus, allows limited market share in the industry.

35
Ultratech cement

Strengths Weaknesses

 Strong brand image.  Delay in supply.

 It has an annual capacity of 60  Lack of awareness program for

million tones. consumer due to low promotion mix.

 Better quality.  In consistency of supply.

 Long relationship with customer.  Insufficient man power.

 Maintenance a world class  Brand awareness of Ultratech Islesser

infrastructure. as compared to global market.

 Market share.  High cost of branded product.

 Large distribution network.

 Proper research and development.

 Strong financial backing.

36
Opportunities Threats

 It can develop new market areas.  It faces strong competition from global

players.

 It can sign more mou’s with  Government intervention to adjust

government regarding supply of cement prices.

cement for government work.  Cheep price brand are grabbing rapidly

 Maintain the position of competitionin a large chunk of lower income

the market. customer base.

 Institutional market like, corporate  Merger and acquisition involves high

offices, school, society, complexes are risk, so it should be careful while

growing in large scale, which will entering in new market.

increase the recruitment.

37
ACC cement

Strengths Weakness

 Better brand image.  ACC as a brand is famous only in India,

so it not known globally as compared to

 Wide distribution. other brand.

 Advertising is poor as compared to its

 Large manufacturing units. competitions.

 Lack of awareness program for

 Active participation in CSR. consumers.

 Losing brand equity.

 Operation since 80years have madeACC

a strong brand.  Weak promotional activity.

 “DhalaiKarneKelye” people ask forACC.

 Perceived to be of very superior quality

when compared to others.

38
Opportunities Threats

 Brand activities.  Low market share.

 Growing infrastructure of the nation.  It also faces strong competition from,

global players in Indian market.

 As Indian core industry is also growingat  Many local players offering low cost

a rate of nearly 10 percent per annum. product.

 Extended service in the field of  MTM (Market To Market) delayed

construction. adoption.

39
AMBUJA cement

Strengths Weakness

 Largest cement exporter in India.  Lack of product diversification.

 Lowest cost cement producer in India as  High transport cost.

well as world.

 Leading cement manufacture in the  Benefited due to indirect taxation

country. system.

 Wide distribution network.  High exercise duty creates cost high.

 It has a strong revenue year on year.  Limited presence in southern market.

 Logistic management.  Dependent on government for license of

mine.

 Presence in primary market.  Highly reasonalized and localized

market.

 Its cyclical industry.

40
Opportunities Threats

 Innovative recruitment and retention  it is facing strong competition from Indian

practices. and global players in cement sectors.

 Competitive compensation plans.  Rising cost of logistic.

 Reward and incentives.  Rising cost of power.

 Continuous learning opportunities to  Shortage of fly ash.

employees for their future growth and

development.  Currency risk.

 High growth in cement industry.

 New entrant threats due to high

 Increase its global exports business by potential market.

merger and acquisition.

41
 CHAPTER - 6

FINDINGS

1. UltraTech cement ltd. has been able to with stand the recent sell-off in cement

counters better than peers acc Ltd. and Ambuja cement ltd despite higher valuation.

2. while share of acc and Ambuja cement shipped 13 percent and 16 percent,

respectively, inMay, UltraTech was able to restrict the fall to 6 percent.

3. Acc and Ambuja also witnessed a sharp decline on a year to date basis. As a result,

acc hasbeen excluded from the MSCI index, and Ambuja cement from the NSE Nifty

50 index. Ultratech, on the other hand, is still part of the nifty 50

4. . whileUltraTech trades at a 13 percent premium to its two-year average, acc and

Ambuja cement trade at a discount of 21 percent and 37 percent, respectively,

according to bloomberyquints calculation.

5. Despite higher valuation, Mot analyst prefer UltraTech cement over, acc and Ambuja

cement, even as their return potential may be higher after the recent correction

6. Ambuja cement is not present in south as well as Central market in country while acc

and UltraTech is present all corners of the country.

7. Ultratech cement is far better than acc and Ambuja cement.

42
 CONCLUSION

Ultratech cement ltd and acc cement Ltd and Ambuja cement Ltd are there major

players in cement manufacturing sector in India. The study is based upon the analysis of

strengths, weaknesses, opportunities and threat of these three companies. For this completion

of the studythe data has been collected mainly from company’s annual report and other

various online sites. After making comparison between UltraTech cement ltd, acc cement ltd

and Ambuja cement ltd. It shows that UltraTech cement ltd is the India's largest cement

company and amongst the world's top cement manufacturer, however acc cement ltd firstly

introduce bulk cement. In this study we got to know that UltraTech and acc cement are

profitable in large projects by the people whereas Ambuja cement is preferable by the people

at the time of small repairments of roof and house etc...at last it is concluded that UltraTech

cement is the largest and profitable cement companies in whole Asia.

43
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