Supply Chain in Cement Industry

Topics: Cement, Portland cement, Concrete Pages: 49 (11785 words) Published: October 29, 2010

A big Thank You to each one of the people involved with me and helped and stood by me during my year-long project.

I am grateful to my guide for being patient and kind and poring through all my documents with great attention and care. He took great pains to go through the entire project and make necessary corrections as and when required.

A deep sense of gratitude to the ACL team comprising Wilson Fernandes, SCM Head; A. Singhal, Purchasing Manager; and Sanjay Gupta, Head Marketing, without who my paper would not have been complete.

I would also like to thank my institution and faculty members without whom this project would have been a distant reality.


Ambuja Cement Limited (ACL) previously known as Gujarat Ambuja Cement Limited is an Old buzzword in Indian CEMENT market. With Strategic Alliance with world’s largest cement manufacturer, HOLCIM a Swiss base company acquires a strong hold on its quality and know-how that is not second to any other cement manufacturing company.

ACL is surging towards more and more innovations to offer nothing but the very best and the latest CEMENT manufacturing technology to esteemed customers. Thus, ACL is able to monitor the quality from the very beginning till the final product.

The manufacturing process at ACL is of paramount importance. The process uses state-of-art production technology of the production management. The company is actively involved in environment protection and product design to assure consistent quality and optimize the cost for its customers.

This project is a study of value chain analysis of ACL and to find how ACL is creating value for its customer and understanding of its Supply chain management system to know where ACL stands in compare to other cement companies.

The project is completed using Questionnaire for the Interview and observation of the company SCM system in plants. The analysis is based on Primary data analysis and secondary data analysis. I have met SCM head, Logistics Manager, Export manager and CTO of ACL to find out the value chain and supply chain system and ERP implementation in the company.

The objectives of this project are Analysis of value chain system in ACL. Interview with the concerned official from ACL is used by me as a tool for the understanding.

ACL’s ‘Ambuja Shikhar’ became the countries first-ever ship to carry bulk cement when it sailed from ACL’s Muldwarka jetty to New Mumbai terminal. For a product, which has been traditionally transported by rail or road and in ready-to-deliver packing, the concept of bulk deliveries was new. For ACL, in one stroke it meant a reduction of 40 percent in transport costs. Since then the principles of logistics management, cement packaging and delivery mechanisms have been permanently transformed.

The major things that I have found in this project are regarding the effectiveness of value chain system in ACL. ACL Company is concentrating on consistent quality delivered to customer and customer’s full satisfaction.

Chapter 1


India is the world's second largest producer of cement with total capacity of 224 million tonnes (MT) as on April 30, 2010, according to the Cement Manufacture’s Association. The government's continued thrust on infrastructure will help the key building material to maintain an annual growth of 9-10 per cent in 2010-11. The rating agency Fitch predicated in January 2010, that India will add about 50 million tonne cement capacity in 2010, taking the total to around 300 million tonne. On record around 40M million tonne were added to capacity in 2009 and there is expectations that the trend will follow for this year too.


The first cement plant was set up in 1914, by the Indian Cement Co. Ltd. at Porbandar, Gujarat. The total installed capacity for...
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