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. INTRODUCTION:

Cement is an essential component of infrastructure development and most important

input of construction industry, particularly in the governments infrastructureand housing programs, which are necessary for the countrys socioeconomic

growth and development. It is also the second mostconsumed material on theplanet (WBCSD 2002). The Indian cement industry is the second largestproducer of cement in the world just behind China, but ahead of the United

States and Japan. It is consented to be a core sector accounting for

approximately 1.3% of GDP and employing over 0.14 million people. Also the

industry is a significant contributor to the revenue collected by both the centraland state governments through excise and

Cement industry - Overview

Today, the Indian cement industy is very large, second only to China in terms of installed

capacity, and has grown at a very fast pace in recent years. The rate of growth over thepast 20 years has been phenomenal, as shown by Figure 1.3 Since 1992 India's cement

production has more than quadrupled from around 50Mt/yr to 220Mt/yr in 2011.

Although the Indian cement industry has some multinational cement giants, like Holcim

and Lafarge, which have interests such as ACC, Ambuja Cement and Lafarge BirlaCement, the Indian cement industry is broadly home-grown.5 Ultratech Cement, the

country's largest firm in terms of cement capacity, holds around 22% of the domestic

market, with ACC (50%-owned by Holcim) and Ambuja (50%-owned by Holcim) having15% and 13% shares respectively.

Many of the remaining dozen top players are Indian and are (in order of diminishingmarket share); Jaiprakash Associates (10%), The India Cements Ltd (7%), Shree

Cements (6%), Century Textiles and Industries (5%), Madras Cements (5%), Lafarge(5%), Birla Cement (4%) and Binani Cement (4%).

Between them the top 12 cement firms have around 70% of the domestic

market.6 Around 100 smaller players produce and grind cement on a wide range of scales

but are often confined to small areas.

. Evolution of the Indian Cement Industry:

The story of the evolution of the Indian cement industry is rather long, where it has seenmany ups and downs, but finally has arrived in its maturity stage as it is beginning to

gather the benefits of its decontrol by the government in 1989-90.

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STRUCTURE OF THE INDIAN CEMENT INDUSTRY

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1. It is a fragmented industry. There are 56 cement companies in India, operating124large and 300 mini plants, where majority of the production of cement (94%) in the

country is by large plants.

2. One of the other defining features of the Indian cement industry is that the location

of limestone reserves in select states has resulted in it is evolving in the form of clusters.

3 .Since cement is a high bulk and low value commodity, competition is also

localized because the cost of transportation of cement to distant markets often results inthe product being uncompetitive in those markets.

4. Another distinguishing characteristic comes from it being cyclical in nature as the

market and consumption is closely linked to the economic and climatic cycles. In India,

cement production is normally at its peak in the month of March while it is at its lowestin the month of August and September. The cyclical nature of this industry has meant that

only large players are able to withstand the downturn in demand due to their economies

of scale, operational efficiencies, centrally controlled distribution systems

and geographical diversification.

AMBUJA CEMENT COMPANY HISTORY

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Ambuja Cement is just twenty years old. A cotton trader from Mumbai and a reputed

trading family from Kolkata came together to float a cement company.They knew verylittle about cement manufacturing. Both, however, recognised the inherent strengths of

the business: cement was a core industry and would play a crucial role in a developing

country like India. Moreover, there was little technological obsolescence and the productwould never go out of fashion. Ambuja Cement established its first plant with a 700,000

metric tonnes per annum capacity in western India in 1986. By 1993, the company had

increased this to three million tonnes. In addition, it had set up Indias first bulk cementsea transport system to connect to Indias largest cement market Mumbai. In 1995, this

Gujarat-based company set up an integrated plant in Himachal Pradesh and a grinding

unit at Ropar in Punjab.This was Punjabs first cement plant. Later, it acquired Modi

Cements to stamp a giant footprint in East India. At the turn of the 20th century, AmbujaCement bought out DLF Cement in Rajasthan to consolidate its position in North

India.Two years later, the company constructed a green field plant in Maharashtra to

build capacity to 12 million tonnes. By further expanding this, it upped capacity to 15

MTPA by 2005. In twenty years, the company had grown more than twenty times effectively doubling its initial capacity every year

Company description

Ambuja Cement, a part of Holcim group, is the third largest cement company in India

with total capacity of 27m ton under its control. It is one of the lowest cost producers ofcement with focus on structurally sound markets of North, West and East. It is also the

largest exporter of cement from India.

Key investment arguments

Best positioned geographically (#1 & #2 in North and West, respectively) to benefit

from current upturn in cement prices.

Geographical location gives flexibility to choose between domestic and export market.

Financially well placed (zero net debt) to drive further consolidation in the industry.

Key investment risks

Higher dependence on imported coal could impact profitability in price inflation

environment.

Any downturn in the export market would result in oversupply in the domestic market,

resulting in pressure on prices in the key market of Gujarat.

MEMBERS OF THE BOARD

Mr Suresh Neotia

Co-founder and Chairman Emeritus of Ambuja Cements Limited, Mr Neotia is a

businessman and industrialist of repute. He is currently a member of the Central Boardof the Reserve Bank of India. He is known for his association with numerous cultural

institutions and charitable organisations. He was conferred the Padma Bhushan by the

President of India in 2008.

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Mr Narotam Sekhsaria

An industrialist reputed for his business acumen, Mr Sekhsaria is the founder of Ambuja

Cements Limited. His path breaking and innovative thinking created new benchmarksfor the cement industry. He is currently the Chairman of Ambuja Cements Limited and

ACC Limited.

Mr Onne van der Weijde

Mr van der Weijde is a Dutch national with a bachelors degree in economics and

accounting from Rotterdam, and a masters degree in business administration from theUniversity of Bradford. He joined Holcim in 1996; after holding various positions, was

appointed Director and General Manager for Holcim (India) Private Limited in March

2005. He was the CFO of ACC for around two years during 2006-2008. He has over 15

years experience in the cement industry, including six years in the Indian cementindustry. He is currently Managing Director, Ambuja Cements Limited.

Mr B L Taparia

Mr Taparia is Company Secretary & Corporate Sustainability Officer at Ambuja CementsLimited and has been with the Company for the past 28 years. He joined Ambuja

Cements in 1983 as Deputy Company Secretary, and was Whole-time Director of theCompany from 1999 to 2009. He is also a fellow member of the Institute of Company

Secretaries of India.

Mr B B Tandon, IAS (retd)

Mr Tandon was recruited into the Himachal Pradesh cadre of the civil service in 1965,

and retired as Secretary Personnel, Government of India. He also served as Secretary -

Mines and Chief Election Commissioner of India. He is presently on the board of variousprominent organisations.

Mr P K Laheri, IAS (retd)

Recruited into the 1969 batch of the Gujarat cadre, Mr Laheri retired as Chief Secretary

in March 2005. He also served as Chairman and Managing Director of Sardar Sarovar

Narmada Nigam Limited, Gandhinagar. He held many positions in industry, education,information, water supply, fashion, tourism and rural development during his career.

J.k laxhmi cement company history

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JK Lakshmi Cement, member of the JK Organisation is a blue chip cement company

operating in India. Launched in 1982, Lakshmi Cement, an ISO9001:2000 company, is

built over an area of about 8 square kilometers at Jakaypuram in the Sirohi

District ofRajasthan (24.690N 73.003E). It is a public company listed on the Bombay

Stock Exchange.

As one of the large manufacturers in the Indian cement industry, JK Lakshmi Cement has

acquired the ultra modern equipment from Fuller International of the United States of

America, and electronic packers from Ventomatic in Italy. The annual installed plant

capacity was 3.4 million tonnes per annum in 2007, but was being expanded to 5 million

tonnes per annum during 2008

Chronicle of the company thus began in the state of Rajasthan during the year 1938. Oneof the established names in the cement industry, JK Lakshmi Cement (JKLC) Ltd has

state-of-the-art plant at Jaykaypuram, district of Sirohi, Rajasthan having an annual

capacity of 3.65 million tonnes. With the use of the latest technology from M/s Blue

Circle Industries and modern equipments from M/s Fuller International of USA, thecompany going from strength to strength and produce JK Lakshmi Cement, JK Lakshmi

plast and JK Lakshmi Power Mix. It is also the first cement producer of Northern India to

be awarded an ISO 9002 certificate and be accredited by NABL (Department of Science& Technology, Government of India) for its Lab Quality Management systems. During

the year 1993-94, the company had received an ISO 9002 certificate. The Company name

was changed to J.K Corp Limited from Straw Products Ltd in 24th February of the year1995 and also in the same year entered into Multi Product Corporation Manufacturing

Paper, Cement, and Magnetic Tape. In the year 1998, the company introduced a new

brand Lakshmi Chattan. The Company during the year has bagged the prestigiousGreentech Safety Award 2003-04 for Safety and Environment from the Greentech

Foundation and the Golden Peacock National Award for Environment Management

System from the World Environment Foundation. During the year 2004-2005, the

company had exited from Magnetic Tape business and in the same year, the companychanged its brand name from Lakshmi Cement into JK Lakshmi Cement. The Company

during the year 2004-05 commenced marketing of Ready Mixed Concrete (RMC) from

Gurgaon based plant under the brand name JK Lakshmi Ready Mix Concrete. TheCompany name was changed to JK Lakshmi Cement Limited with effect from 6th

October of the year 2005. The Company's Scheme of de-merging its Investment Division

to another company had been completed in the year 2005-06. The Scheme ofReconstruction, Arrangement and Demerger between JKLC and Ashim Investment

Company Limited (AICL) had become effective from 31st March of the year 2006. JK

Lakshmi Cement Limited was declared a winner of the Golden Peacock Award for

Corporate Social Responsibility for the year 2007. JKCL had commissioned its Phase ICaptive Thermal Power (18 MW) plant in March of the year as its significant milestone.

During the same year of 2007, the company had enhanced its Kilns, further, it started

cement mills No.4 and 5.

Vision

http://en.wikipedia.org/wiki/JK_Organisationhttp://en.wikipedia.org/wiki/Cementhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/w/index.php?title=Jakaypuram&action=edit&redlink=1http://en.wikipedia.org/wiki/Sirohi_Districthttp://en.wikipedia.org/wiki/Sirohi_Districthttp://en.wikipedia.org/wiki/Rajasthanhttp://tools.wmflabs.org/geohack/geohack.php?pagename=JK_Lakshmi_Cement&params=24.690_N_73.003_E_region:IN_type:landmarkhttp://en.wikipedia.org/wiki/JK_Organisationhttp://en.wikipedia.org/wiki/Cementhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/w/index.php?title=Jakaypuram&action=edit&redlink=1http://en.wikipedia.org/wiki/Sirohi_Districthttp://en.wikipedia.org/wiki/Sirohi_Districthttp://en.wikipedia.org/wiki/Rajasthanhttp://tools.wmflabs.org/geohack/geohack.php?pagename=JK_Lakshmi_Cement&params=24.690_N_73.003_E_region:IN_type:landmark

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be A Profitably growing innovative and Caring Company, Aspiring to Double the market

share and Be among top 7 in the Indian Cement Industry

Mission

Double Sales every 4 years, Profit every 5 years

Achieve Operational Excellence

Create superior value for customer through Premium Products & Brand

Positioning

Be a workplace of choice-Attract, Retain and grow Talent Pool

Continuously enhance shareholders wealth and be a preferred portfolio among

investors

Socially Responsible Corporate Decision

Sr. No Name Designation

1 Vinita Singhania Managing Director

2 Bharat Hari Singhania Vice Chairman & M.D.

3 Raghupati Singhania Director

4 K N Memani Director

5 Shailendra Chouksey Whole-time Director

6 B V Bhargava Director

7 N G Khaitan Director

7 Raj Kumar Bansal Nominee (IDBI)

8 Pradeep Dinodia Director

9 S K Wali Whole-time Director

10 Brijesh K Daga Company Secretary

11 Ravi Jhunjhunwala Additional Director