wcm application 2013 (2)

7/29/2019 WCM Application 2013 (2)

http://slidepdf.com/reader/full/wcm-application-2013-2 1/62

UltraTech Concrete

Application Brochure

Chairman’s WCM Awards 2013


http://slidepdf.com/reader/full/wcm-application-2013-2 2/621 | P a g e

ContentsOrganization Profile .......................................................................................................................................................... 3

1. Introduction: ............................................................................................................................................................. 3

2. Business Environment: .............................................................................................................................................. 3

3. Organizational Relationships:.................................................................................................................................... 4

4. Competitive Environment: ........................................................................................................................................ 5

5. Strategic Challenges: ................................................................................................................................................. 6

6. Supply Chain: ............................................................................................................................................................. 6

7. Technology ................................................................................................................................................................ 7

8. People: ....................................................................................................................................................................... 7

9. Innovation: ................................................................................................................................................................ 7

10. Sustainability: .......................................................................................................................................................... 8

1. Leadership ..................................................................................................................................................................... 9

1.1 Vision , Mission, Values and Ethics.......................................................................................................................... 9

1.2 Championing Organizational Change .................................................................................................................... 10

1.3 Corporate Social Responsibility: ............................................................................................................................ 12

1.4 People Empowerment ........................................................................................................................................... 13

2. Strategic Management ................................................................................................................................................ 14

2.1 Strategy Development: ......................................................................................................................................... 14

2.2 Strategy Deployment: ........................................................................................................................................... 15

2.3 Enterprise Risk Management: ............................................................................................................................... 19

Risks / Challenges ........................................................................................................................................................ 19

Mitigation .................................................................................................................................................................... 19

3. Financial Management ................................................................................................................................................ 20

3.1 Financial resource planning .................................................................................................................................. 20

3.2 Cash Flow and Corporate Finance ......................................................................................................................... 21

3.3 Company Secretarial and Investor Services .......................................................................................................... 22

4. Sustainability ............................................................................................................................................................... 244.1 Sustainability Reporting ........................................................................................................................................ 24

4.2 Governance, Commitment and Engagement ........................................................................................................ 24

4.3 Environment Management ................................................................................................................................... 25

4.4 Safety and Occupational Health Management ..................................................................................................... 27

4.5 Social Responsibility .............................................................................................................................................. 28

5. Asset & Infrastructure Management .......................................................................................................................... 29

5.1 Infrastructure Management: ............................................................................................................................... 29

5.2 Asset Maintenance System: .................................................................................................................................. 30

5.3 Ownership Culture: ............................................................................................................................................... 31

6. Supply Chain Management ......................................................................................................................................... 32



6.1 Sales and Operational Planning (S&OP) ................................................................................................................ 32

6.2 Supplier Engagement ............................................................................................................................................ 33

6.3 Throughput Management ..................................................................................................................................... 35

6.4 Inventory Management ........................................................................................................................................ 36

6.5 Product Life cycle Management ............................................................................................................................ 36

7. Market and Customer Orientation .............................................................................................................................. 377.1 Market Orientation ............................................................................................................................................... 37

7.2 Customer Focus ..................................................................................................................................................... 38

7.3 Brand Management and Business Corporate Communication ............................................................................. 41

8. Quality Management .................................................................................................................................................. 43

8.1 Identifying Opportunity ......................................................................................................................................... 43

8.2 Quality Assurance and Improvement.................................................................................................................... 43

8.3 Extension of Quality Management to suppliers/ Partners/Customers and Projects ............................................ 46

9. People Management ................................................................................................................................................... 47

9.1 Employee Relationship Management ................................................................................................................... 47

9.2 Work Environment ................................................................................................................................................ 48

9.3 Performance Management and Competency Building ......................................................................................... 49

9.4 Talent Management and Retention ...................................................................................................................... 50

10. Information Management and Technology .............................................................................................................. 52

10.1 Strategic Information Planning: .......................................................................................................................... 52

10.2 Information Management: .................................................................................................................................. 53

10.3 Information Technology ...................................................................................................................................... 54

11. Systematic Innovation ............................................................................................................................................... 56

11.1 Developing Culture for Continuous Improvement and Innovation .................................................................... 56

11.2 Collaboration and Networking: ........................................................................................................................... 57

11.3 Management System to Support Innovation : ................................................................................................... 57

11.4 Customer and Competition : ............................................................................................................................... 58

11.5 Knowledge management .................................................................................................................................... 58

12. Technology Management ......................................................................................................................................... 60

12.1 Management of Technology : ............................................................................................................................ 60

12.2 Research and Development: ............................................................................................................................... 61



Organization Profile

1. Introduction:

UltraTech Concrete, the Readymix Concrete(referred RMC) division of UltraTech Cement Ltd. (a Public

Limited Company of Aditya Birla Group), is the leading RMC player in India with over 100 RMC plants across

36 cities. UltraTech Concrete started its operation in 1998 with the first plant in Hyderabad and grew to 20

plants in 12 cities by 2006-07. Since 2007-08, the company has grown steadily to 102 plants today with aturnover of over Rs.1800 Crores.

RMC is still at a nascent stage in India and is highly fragmented due to low entry barrier. With over

hundreds of unorganized RMC players, the only way to compete is by differentiating ourselves in terms of

products and services. Our current annual production is 52.10 Lacs CuM of which >20% is Value Added

Concrete which is a key differentiator.

The adjoining figure shows the Value Chain of RMC Business. It comprises Procurement / Sourcing of Raw

Materials, Batch Production, Transportation/Delivery and Pumping / Placeof Concrete. Transportation and

Pumping is the key to achieving the desired customer service levels.

RMC Value Proposition:

1. Precise Quality & Ease of construction

2. No inventory on-site

3. Speedy & Economical Construction

4. Less wastage & Pollution free

2. Business Environment: Current usage of RMC in India - 74 million cubic meters consumption, remaining - on-site mixed &

contractor batching (BCG Estimates: inclusive of RMC consumption on infra projects via dedicated

plants in remote locations)

Major tier-I cities: Mumbai, Delhi, Chennai, Bangalore, Hyderabad, Kolkata, Pune and Ahmedabad.

Reasons for low level:

o Preference of on-site concrete by unorganized builders on cost front

o Lack of awareness

o Residential construction is primarily retail

o Local constraints of traffic regulations & lack of governmental support

Catalyst in growtho Space constraint in medium and large size cities

o Urban Infrastructure: Mandatory use in flyovers by government

o Service quality



SPELT Analysis:

Porter’s 5 Forces Analysis:

- Competitive rivalry: Very High

o

Several unorganized players other than majorplayers in this business

- Threat of new entrants: High

o Less Capital intensive business (Rs 4 Cr capex

for 30 CuM/hr plant). Less technology intensive

- Threat from substitutes: Average

o SMC main substitute. It is cheaper plus India

doesn’t have law yet to enforce RMC

- Bargaining power with buyers: Low

o We have minimal pricing power due to multiple options available with Buyer due to

fragmented industry.- Bargaining power with suppliers: Low

o Aggregates price have huge volatility. Cement supplies though are assured giving us edge

3. Organizational Relationships:

UltraTech Concrete operation in India is split in 6 zones – North, East, South-A, South-B, Maharashtra and

Gujarat+MP. Each zone is represented by a Zonal Head who has the P&L responsibility. The Zonal Heads are

aided by Functional Heads – Projects, Operation & Maintenance, Safety, Finance & Commercial, Technical

and HR. The Zonal Heads and Functional Heads report to Head, RMC.

Customer Segmentation:

Project Volume End Use Mix Type Description

Category A Category B

Micro

Retail/Retail

upto 300 upto 300 Residential P1 Mix only One time customers /

individual house owners

Medium 301 to

3000

301 to

1500

Commercial/

Infrastructure/

Residential/

Other

P1/ Customer

specified

Contractors / builders/

Developers/ Flat

promoters/ Reputed

Dealers & SPC’s Key/Large 3001+ 1501+ Commercial/

Infrastructure/

Residential/

Other

To convince

for P1

Major developers / Major

contractors / Major

industrial contractor /

Promoters /Key Ac

Social

-Awareness among people

-High number of compliant player

-Environment Friendly product ascompared to SMC/alternate building

materials

Political

- Politically influenced AggregateIndustry

- RMC in Govt Projects Not Mandatory

Economic

- Increase in excise duty @1% YoY forlast 2 yrs

- Higher taxation on RMC

- Fragmented nature of the industry

Legal

- Traffic regulations and statutoryclearance norms

- Restrictions on Night Concreteing/River Sand

Technological

-Usage of Artificial Sand

-Substitution by Construction waste

-Innovation to differentiate between ourRMC with competitor



Product Portfolio:

Sourcing:Raw Materials – Cement, Aggregates & Sand and Admixture

– constitute ~70% of our cost. While Cement is our in-

house product, we have rate contracts for all the criticalraw materials and we have developed our vendors through

a collaborative approach to ensure back to back supply of

raw materials at the best cost. We have also created an

independent Aggregates Vertical for acquisition of own

quarries ensuring bringing in enhanced focus on backward

integration initiatives.

Delivery Partners:

The deployment of Transit Mixers and Pumps has been

outsourced to our service providers. Again, these are exclusive delivery partners who are developed to work with us

on pan India basis assuring best cost and serviceability.

Employee Profile:We have a team of over 3500 people working in our division of which Management cadre, Staff cadre and unskilled

manpower comprise 17%, 53% and 30% respectively.

4. Competitive Environment:

As described in the Porter’s analysis

above, RMC is a very low barrier

industry which makes it a very

fragmented industry. Add to that,

being a low margin basis, many

small/local players get into

malpractices which also makes it a very

unorganized industry and a very

difficult one to compete in. If we



exclude the unorganized segment, then there are only a handful of commercial RMC players India. The

noted ones are – UltraTech, ACC Concrete, Lafarge Concrete, RMC Readymix India, RDC Concrete, Godrej

RMC.

We compete with the hundreds of unorganized RMC players through Product Differentiation:

Player No. of Plants

(FY’13)

Market

Share

(FY’13)

Cement Aggregates Transit

Mixers

Pumps

UltraTech 102 34% Yes Partial - Partial

Lafarge 80 19% Partial Partial - Partial

RMC (I) 88 18% - Partial Partial Partial

ACC RMX 42 12% Yes - - -

RDC 23 04% - - Partial Partial

Others ~160 13% - - - -

5. Strategic Challenges:

SWOT Analysis

Based on the SWOT analysis, we have devised

our 4-pronged strategy as shown in the adjoining

diagram. These strategies stem from our Critical

Success Factors, which are:

- Raw Material procurement

- Robust operational control

- Expanding profitably through innovative

models

- Product and Service Differentiation

6. Supply Chain:

Strength

•Largest cement player inIndia with presence acrossthe entire geography

•Experienced management

Weakness

• Sensitivity towardsAggregates Price

• Limited Control on Downstream Aggregate sources

Opportunities

• Rapidly growing market

• Customer's Focus on Quality

Threat

•Fragmented/ unorganizedindustry

• Low entry barriers

INBOUND DATA

•City Head Pump

•Marketing

•VTS

•Plant Heads

•Customer

•Field Technician

PROCESSING

•Central DispatchCentre

•Plant

OUTBOUND DATA

•Customer Service Cell

•Central SCM

•City Head Operations

•Plant Wise PlantHead

•Marketing

•Quality Plant/CityHead

•City Pump Head•Vendor



Supply Chain in RMC Business is one of the Critical Business Process, efficient Supply chain is key to success

of any RMC Operator. For analysis and bringing adequate focus wehave broken down our business into

various critical processes and measuring cycle time of Forward Logistics through VDMS (Vehicle Data

Management System)

Some of the Key highlights in Throughput management is as below:

• Central ware houses or Store in city / Zones –

• Norms for Inventory Min Max Levels

•

SAP implementation for System integration

Since, Raw Materials consumes our 65% profit realization ratio, we started our own Mining & succeeded

gradually in last One - two years and as well Long terms Tie Ups to reduced our cost of Raw Materials :

• Owned Quarry

• Long Term Tie Ups

7. Technology

Organisation follows a practice of assessing emerging technologies related to Products, Processes and

Equipments involving Team of Functional Experts who engages in evaluation of Various Technology

Available. The comparison is done under numerous parameters and accordingly a set of comparison is

done to help us in identifying right Technology.

A periodic Meeting with the equipment manufacturers is carried out. Equipment suppliers are also called

in CHO Meet which happens annually to share the latest in Technology with large group of Operations &

Maintenance People.

The Team has done enough Technology scanning in the field of following Equipments and Auxiliary and

able to demonstrate

1. Batching Plants

2. Pumps

3. Compressor / Blowers

4. Chilling Plant Imported Vs Indigenous

5. Solar Power

6. Powering TM with CNG in selected Cities

8. People:With the scarcity of technical skill sets in the market and the war for talent, competency building and

capability development had to become a part of our culture. As an important action area of early OHS and

Vibes, learning started playing an important focus. Capability building facilitates career progressions

thereby retaining employees. Our Organisation has taken following initiatives on Skill / Competency

Development.

a) My Development Plan (MDP): A awareness program was created regarding this initiative. A E-

Learning course “Yojana” was mandate to have an understanding of the MDP Process.

b)

Job Rotation: To enable competency building through functional and cross functional movements.The cross functional movements were initiated for Chemists, people in Operations, Quality Control

and Application Engineering.

c) Multiskilling at Gurukul Training Centre:RMC being an unconventional and nascent industry, there

was a scarcity of front line operators to keep pace with the aggressive growth plans of UltraTech. To

strengthen in-house capabilities, RMC division rolled out a skill development programme and

multiskilling programme

9. Innovation:

Organization encourages improvements and believes that big improvement is initiated fromthe small

problem solving andintegrating such small- small improvements results in a Breakthrough Innovation.

There have been activities to encourage improvement culture through following:



a) Kaizens / Suggestions- Participative Management resulting into creative solutions.

b) Product Innovation – In house Development of New Product / Value added Product

c) Service Innovation- GPS based Tracking system for out bound logistics VDMS

d) Business Concept Innovation - UTCL –RMC was the first to venture into the idea of Dedicated Model.

Where the idea is to operate and maintain the Plant at Customers Premises. UTCL devised many

variant of this model and today we are one of the most successful RMC operators in the Nation . This

Model has given us a great Leap in the span of 2009 – 2012 and catapulted our capacity to more than

100 Plants and put us as the market Leader in the Country.

10. Sustainability:

For a business to become sustainable, it needs to reach a point where economic imperatives work in

harmony with environmental and social ones. This is a supercilious goal and is likely to take a lot of effort to

achieve in any business. For this reason, we refer to sustainability as a journey, rather than a destination.

We have mapped all our Process in terms of Eco friendliness and activities are planned to improve on

overall improvement in terms of:

Integrated approach: We believe sustainability is a strategic business issue and to be successful, Enterprise

needs to consider integrating it into ourcore business models. Our experience

indicates that our Previous approach of

inculcating sustainability through ad hoc

programs or isolated initiatives do not

achieve their desired outcomes and goals

as effectively as it takes with an integrated

approach.

12. Environment, Health & Safety

We are the first Integrated Management System RMC

company in India having ISO-9001, ISO-14001 and ISO-

18001. In our endeavour to eliminate unsafe acts and

unsafe conditions, we have devised an online recording

system of safety observations with specific targets forall Management level people from Plant Head to Head,

RMC. We have engaged DuPont to advise us on

implementing safety systems across all the divisions of

UltraTech Cement Ltd.



1. Leadership

1.1 Vision , Mission, Values and Ethics

UltraTech Concrete is the leading RMC Player in India. The company started its operation in the year 1998

with our first plant of 30 CuM/Hr at Hyderabad , since then Company has added more than 100 plants

spread across 35cities with a capacity of around 55,000CuM/Hr till now.

Our Business is based on a robust assumption that the Cement going into the RMC in Developed nation like

US, Canada and Europe is ranging from 40 % to 70% where as in India it is around 17%. We estimate a

Growth on Indian economy will lead us to 15% as first mile stone by 2020.

GroupValues

Vision andMisson

Strategy

Operational Excelence

Service Excelence

Assesment and Review



Every opportunity is utilized to propagate our Vision and Mission thru Display boards in plants and various offices,

Verbal communication, Emails and printed material to our stake holders.

Beyond promoting the values, Leadership acknowledges and awards individual who display group values and ethical

behavior. Management ensures that in no circumstances our values are compromised.

A fully institutionalized system for adherence to Code of Conduct,Delegation Manual and Female employee policy is

in place. Structured Value workshops followed by interactive induction programs for new employees are practiced to

ensure that every Individual is aware on appropriate ethical behaviororganization expects.

Our business has a robust system of Accounting all financial transactions and classification of costs as per ICAI

guidelines. Various business transaction undergoes “Credit Worthiness” a system developed in house to ensure that

we do not get an over exposure on Credits with any of our Associates.

Corporate Governance in our enterprise deals with determining ways to take effective strategic decisions. It gives

ultimate authority and complete responsibility to the Board of DirectorsCorporate Governance ensures transparency

which ensures strong and balanced economic development. This also ensures that the interests of all shareholders

(majority as well as minority shareholders) are safeguarded. It ensures that all shareholders fully exercise their rights

and that the organization fully recognizes their rights. It includes both social and institutional aspects. Corporate

Governance encourages a trustworthy, moral, as well as ethical environment.

1.2 Championing Organizational Change

We have evolved an Organization structure as depicted below with distinct focus on Strategy,Project management,

Operational Excellence and People Management.

RMC Over this there exists ahorizontal cross functional WCM structure involving people from various functions into a

WCM subcommittee,as depicted below

RMC Head

Zonal Heads(6 Zones)

HR Projects/ BusinessDevelopment/ O&M/Safety

Central TechnicalCell

Finance/Commercial/ SCM



Chart – WCM Organizational Chart (Cross Functional Approach)

Steering Committee is Chairedby Head RMC and it comprises of Functional/ Zonal Heads which oversee theprogress of all dimensions of the WCM excellence Model.

We have identified Control Indicators and Result Indicators of each subcommittee which is based on QCDIP.

There is a system to review the performance of each subcommittee inmonthly review Meeting.

UltraTech Concrete is constantly growing and we recognize that human asset needs to be developed at a

faster pace. To achieve this, a central training and development institute “GURUKUL” at Navi Mumbai has

been created which is taking care of developing skills and multi-skilling of workmen on various trades.

Efforts are made to impart Quality training to employees at the best training Institutes, Gyanodaya and E-

learning.

In a quest to achieve Global benchmark, we engaged Experts like Mr. David Edwards who have over 35

years Experience in Europe and Middle East for higher grade quality and high rise pumping. Further, wehave engaged Boston Consulting Group Inc. to help UltraTech Concrete align its growth plans with UltraTech

Cement Ltd. for Vision 2020. Also we are the first company to initiate with a reputed research partner

CRISIL for a pan India RMC Industry study.

We have constituted a central Knowledge Club which compiles information from respective zones/plants

and then circulates to other locations and follows up for implementation / replication of the initiative

through our inhouse portal Reflection. Member share their best practices, Safety observations and unique

practices on this forum. This initiative is a means of managing knowledge by sharing and creating a

repository of best practices.

We provide learning and sharing opportunities to the people by way of KIP (Knowledge IntegrationPrograms), nearby Plant visits, International Visits / Seminars etc. In 2012, a team of three senior

executives visited Lafarge Technical Centre in Lyon, France to understand new products and technologies in

developed markets and to enhance our R&D focus. This has been instrumental for our Value Added

Concrete development plan for the coming 3 years. There have been similar instances of international visits

by subject matter experts to derive relevant learning.

Research and Development Collaboration with Premier Institutions: Our people are participating in various

international forums and research institutions to keep a track on the latest technological development in

the Concrete space.

BaumaConexpo – An International Exhibition

on Construction Equipment and Technology.

NRMCA – National Ready mix Concrete

Association USA.

NCCBM - National Council of Concrete and

Building Materials

RMCMA -Ready Mix Concrete Manufacturers

Association, India

IIT – Indian Institute of Technology

WCM subcommittee

SC 1

SC2

SC3

SC4

SC5

Function A

Mem 1

Mem 2

Mem3

Mem 4

Mem 5

Function B

Mem 1

Mem 2

Mem 3

Mem 4

Mem 5

Function C

Mem 1

Mem 2

Mem 3

Mem 4

Mem 5



12 | P a g e

Meeting with Suppliers and Customers.

Benchmarking and Best practices:-Bench marking is one of the Critical Success factors identified by

management for long Term success of our Organization. We carry out benchmarking exercise to understand

and improve our performance Vis - a -Vis Global players in terms financial margins and Quality. We also

study and benchmark parameters that have a direct impacton customer satisfaction like quality, cost,

service etc.

1.3 Corporate Social Responsibility:

As a good corporate citizen UltraTech

concrete takes responsibility to

control, minimize and eliminate

adverse impact of all operations

under its control as suitable. The

approach is to be a socially

responsible corporate citizen with

focus on integrating with the

community and promoting

collaborative projects on social

welfare with key partners.

For a business to become sustainable, it needs to reach a point where economic

imperatives work in harmony with environmental and social ones. This is a

supercilious goal and is likely to take a lot of effort to achieve in any business.

For this reason, we refer to sustainability as a journey, rather than a destination.

Like all journeys, it is important to know where you are going and to have a plan

for making progress in that direction.Concrete Manufacturing puts a lot of strain on our Natural resources like

Aggregates and Water.

Site Mix Typical Batch Mix UltraTech RMC

Water

Consumption

(Ltr/Cum)

Above 400 200 170

Reason Manual Process

Weak Controls

Wastage

Controlled

Process

Minimise

Wastage

Controlled Process

Minimise Wastage

Water Reducing

Agents

Reduction in

%age (w.r.t. Site

Mix)

0% 50% 58%

% of Concrete

Making

Above 90% Below 10%

UltraTech holds a coveted honor of being the First RMC Company in India to publish CSR reports on GRI

G3A+ Guidelines. Our report is made on the highest level of Compliance as per GRI guidelines and it is being

validated by a Third party. We maintain complete transparency of our processes and publish it in a public

Domain.

ECOEngineering

Integrated approach



The intention of the business is not only to earn profits but also to fulfill the obligations to the surroundings

on which we exist. Well defined program for the upliftment of the neighboring areas are initiated.

We believe sustainability is a strategic business issue and to be successful, Enterprise needs to consider

integrating it into our core business models. Our experience indicates that our Previous approach of

inculcating sustainability through ad hoc programs or isolated initiatives do not achieve their desired

outcomes and goals as effectively as it takes with an integrated approach.

1.4 People Empowerment

In keeping with our Group Philosophy, our leaders are adequately empowered to bring in professionalism in

the functioning style of our management. Added to this the leaders are empowered to the required level to

take decisions related to their function and also to take care of the employee’s needs. The levels are clearly

defined in our delegation manual.

Rewards and Recognition:-

We intend to recognize and appreciate outstanding contributions from our employees through awarding

them on Individual & Team basis in Various Forums and Events like:

“Galaxy” which is held once in a year in any of the major Indian Cities.

o Talent Award for Best Individual for Outstanding contribution

Safety day in every plant and award the individuals for their contribution for

o Best Safety followers,

o Theme competition on safety day

o Near Miss Reporting

Kaizen Award in each Zones

o Best Three Kaizens are rewarded monthly

In-house award for

o Best plant for housekeeping.

o Best safety records

o Individual employee for best practice for safety.

Hyderabad plant was selected by Pollution Control Board of AP as a model plant in the RMC industry and it

has received a prestigious accolade of “Cleaner Production” Award on the eve of World Environment Day.

Two-Way Communication

There are formal two way communication channels exists in the organization to Facilitate free flow of

information from Top to Bottom and Bottom to Top Communication. We have launched Town Hall Meetings

in all of the zones whereby we try to deal with the issues and grievances of the direct and indirect

employees through continuously meeting them and resolving their issues. In this regard we are having Plant

meeting, monthly meetings at Zones and HO, quarterly meeting and Annual P&B meeting with senior

management. An initiative has been taken through Onstream Portal via creating blogs, communities and

participating in the quiz contest and sharing the interesting issues / solutions /best practices etc.



2. Strategic Management

In India, Ready mix Concrete is an emerging concept in the construction industry where we have outgrown

the industry over the last decade. In order to align the business as per present and developing market

trends, Strategic planning process is carried out at SBU (Strategic Business Unit) level and implemented at

the Zonal/City/Plant level. A systematic process of strategic planning is followed and the business strategies

are formulated considering long term organizational sustainability and competitive environment.

2.1 Strategy Development:

The main objective of strategic planning is to systematically anticipate the changes of the market demand

and Trends and thereafter match it with the required resources. Hence a large portion of this activity is

directed towards understanding market conditions, business anticipation and forecasting.

In line with Company’s Vision, UltraTech Concrete has positioned itself into a Premium Concrete Solution

Provider and has shown an impressive growth from 0.07 Mill CuM in 1998 to 1.4 Mill CuM in 2006 and 5.2

Mill CuM in 2013. The CAGR of Last 6 years volume is 20% which is much above Industry average of 12% for

the same period. For the same period, our Turnover CAGR is 30% which underlines our dominance in terms

of price premium also.Strategy Development in UltraTech Concrete is an Annual Process and attempts to Forecast Short term,

Medium Term Implications in the Business. It is guided by a SWOT Analysis for RMC Business, which brings

the Key Influencing factors on a broader perspective.

SWOT Analysis:-

Business Environment:

UltraTech Concrete builds Performance Excellence into the system of Business Planning (Strategic Planning)

Process by utilizing the inputs from various sources and regularly validating them. This is an elaborateexercise, which is done every year. Business Plan is a 3 years plan. The First Year Plan is also spread out into

monthly plan factoring in seasonal and capacity increase incidents.

Deriving Focus areas from SWOT Analysis, Strategy Formulation also take inputs from other aspects on

“SPELT “ basis which comprises of Social, Economic, Political, Legal and Technological.

GroupValues

Vision andMisson

Strategy

Operational Excelence

Service Excelence

Assesment and Review

Strength

•Largest cement player inIndia with presence acrossthe entire geography

•Experienced management

Weakness

• Sensitivity towardsAggregates Price

• Limited Control on Downstream Aggregate sources

Opportunities

• Rapidly growing market

• Customer's Focus on Quality

Threat

•Fragmented/ unorganizedindustry

• Low entry barriers



Benchmark Study:

We have benchmarked our business dynamics with the Pizza Delivery Business. For a closer examination,

we made cross-functional team of executives to visit Dominos’ regional centre and study their operating

model. The finding of the team was used to further strengthen our operations which are the key to success

in RMC business.

Macro Similarities Micro Dissimilarities

Area Specific Deliveries Catchment areas are strictly defined and adhered to.

Production Demand All orders are flash hence follow FIFO method.

Door-to-Door Delivery Dominos has a fixed menu and the delivery responsibility ends

at the first barrier entry.

Product Shelf Life Product quality responsibility ends once delivered.

Robust Logistics 100% owned fleet with company payroll staff.

Capacity Utilization Concept Plan their store capacity and fleet size based on Peak Demand

hours.

Customer Dependency Dominos doesn’t have any constraints related to the customer

end.

2.2 Strategy Deployment:

The policy deployment approach is used to develop action plans from the top level and cascade down to

the Zonal level and further city level and plant level action plan. The action plans rolls up to support the

preceding and succeeding levels. The plan outlines objectives, strategies, measures and performance.

All resources, (human, financial, physical assets, manufacturing, etc) functional wise, are allocated during

the planning and budgeting session to support the existing and new Plants / projects.

Strategic Road Map:

RMC business is not a manufacturing oriented industry but a service driven industry akin to a Pizza

business. They require similar business operatives:

Efficient Order Booking Made against order

Short Shelf life

Pre-agreed delivery Timeline

Area Centric …. Order Serviceability Handling Peak Demand…. Order Servicing

Capability

Snap shot of the Major Strategic objectives since inception: (please refer to the chart on next page)



Market Share Strategy:

In line with our group and company vision, our aim is to sustain our market leadership. UltraTech Concrete

has positioned itself into a Premium Concrete Solution Provider. The CAGR of Last 6 yrs is 20% which is

much above Industry average of 12% for the same period. Going forward, the business expansion is

planned based on:

The concrete potential of that city through market intelligence and survey

Presence of other RMC players:

o If yes, then whether the potential is large enough to accommodate additional capacities

o If not, then whether the market would provide the ‘first mover advantage’.

MarketShare

Strategy

•Consolidate leadership position wherever we are No.1

• To be among top 2 players in each location within 2 years of operation

•Identify the un-serviceable/under serviced territory of existing locations for further growth

Differentiati

on Strategy

• Product differentiation ….. Largest portfolio of Value Added Concrete

• Service differentiation…… Concrete On Call

• Environment Friendly…….. We Make Green Concrete

LeveragingIT

•Quality expert system - Labsys ….. We Make Good Concrete Better

•Accounting & MIS - SAP ERP ….. Control and Analysis of KPIs

•Operations - OPS ….. Order Scheduling & Processing

•Vehicle Data Management System.. Ticket-wise / Trip-wise details captured in System

Partneringwith

Customers

•Identify the opportunities for project dedicated RMC plants

•Opportunity for increasing the share of concrete in larger projects

BackwardIntegration

•Ensure Raw Material availability through acquisition of own quarries

•Protection against price volatility

Market MixOptimzation

•Relocating assets to more profitable locations

•Diversifying our sales exposure to Retail/Mid-size Project Segments



Differentiation Strategy:

Considering the fragment and unorganized nature of the industry and a low barrier entry, Product

Differentiation is the key to maintain market leadership. We have system of product development as

depicted in the diagram below wherein we constantly look to add on to our existing Value Added Concrete

portfolio.

Leveraging IT:

We are the leaders in the industry in terms

of technological advancements. Our IT

Infrastructure uses the Best in Class

technology for Operations, Accounting,

Quality Management, Vehicle Data

Management. The robust IT infrastructureaids our operational planning and control.

Partnering with Customers – Project Dedicated / Zero Capex Plant:

During the downturn, when putting Capex was a big constraint and the leasing options at premium

locations was economically unviable, we adopted a marketing strategy wherein we collaborated with our

customers who were also dealing with supply constraints to formulate a win-win strategy which effected in

project efficiency and our profitability and share of business.



In the above collaboration, Identifying and bridging the gap

between our offering and the customers’ expectations were

the most significant challenges. We surmounted it by involving

the customers in the whole solution development process and

leveraged each-other’s expertise. The mutual benefit

achieved:

Increase Share of Business of our major Customers

(From UltraTech Standpoint) Single Window Solution (From Customer’s standpoint)

Backward Integration:

Aggregate (Fine & Coarse) is one of the key constituents of Concrete comprising 27% of the total cost.

Currently, the aggregate business is highly volatile in terms of cost as well as quantity availability. In order

to safeguard our margins against this volatility and to ensure the required quantity, we ventured into

backward integration for acquisition of our own quarries.

Market Mix Optimization:

In this initiative, we relocated our assets to more profitable locations and diversified our sales exposure to

Retail/Mid-size Project Segments which helped us increase our sales volume and rveenue with the same

number of plants over the last year.

UltraTech Growth: Given below is the UltraTech Growth since year 2006-07:



2.3 Enterprise Risk Management:

We have a process to identify potential risks and then select appropriate controls or countermeasures to

measure each risk. The risk management plan proposes applicable and effective security controls for

managing the risks. Following table elucidates the same:

Risks / Challenges Mitigation

Raw Material Procurement 1.

Backward Integration2. Long-term tie-ups

Unorganized Segment With the new excise duty norm, we expect reduction in this

segment and consequently reduced pressure on RMC price

realization.

Maintaining Market Leadership 1. Expansion to cities already represented by Competitors

2. Expanding to new locations and get the first mover

advantage

Sustainability 1. Substituting Manufactured Sand for River Sand…. exploring

Marine Sand.

2. Higher Grade Concrete

3. LEED Certified projects

Environment, Health & Safety 1. Applying for OHSAS 18001 certification

2. Part of organization’s initiative on safety through Dupont

Methodology



3. Financial Management

3.1 Financial resource planning

Standard Operating Procedure (SOP)

We have a detailed ‘Standard Operating Procedure’ relating to utilization of financial resources in a most

optimal manner. It consists of clear guidelines and accountability for various levels and it helps in day today operations.

Business reviews SOP form time to time with consensus with other stake holders. The amendments sought,

are sent to CFD for approval. The present SOP has seen a lot of changes w.r.t. to the last one and came

into effect on Feb ’12.

Key Value Drivers

Key value drivers from the financial management perspective are identified and monitored on regular

basis. The same consist of –

Outstanding management- A tool is developed in house to access the credit limit of all the

prospective customers. The tool takes into consideration the business history of customer, its net

worth based on latest balance sheets, past payment performance etc. All these parameter have

different waits to arrive at the allowable credit limit.

Once credit limit is fixed, the customer is dealt with in the limit.

Handling of sales proceed- The business has made arrangements with banks in such manner that

the sale proceeds is deposited directly to the loan account of the business, thus the sale proceeds

reduces the borrowed funds on daily basis.

Only IRR positive CAPEX proposals are considered- Before taking up any new plant, the IRR from

that plant is calculated taking in to consideration a ten year span. Real time VACC is considered for

IRR calculation.

Elimination of Cash in Hand- Business is having establishments in excess of 100 in the country,

keeping cash at every place means idle cash. We have eliminated the practice of keeping cash and

payments are made through E-payment method.

Budget and Target setting

Budget is prepared with a positive ROCE and throughout the year ROCE performance is monitored.

Corrective steps are taken during the year to achieve the projected ROCE.

Risk Hedging

In the course of business we enter into long term supply contracts. In such cases we enter into back to

back long term contracts for supply of raw material also to eliminate the risk of negative profitability in

future.Benchmarking

Process for benchmarking of performance with peer manufactures is in place. Financial performance of

RMC India and ACC’s RMC business is regularly evaluated on various parameters and necessary corrective

actions are taken.

Financial ratios such as raw margin and contribution are regularly monitored and compared with the

competitors. It remains our endeavor to maintain the budgeted raw margin and contribution. In case a

particular plant does not achieve these ratios for certain period the plant is closed / mothballed.

Application of Information Technology

Our entire accounting is automated on SAP platform. RM consumption, various tax calculations are

calculated through SAP. Recently we removed the COMMAND software from our system and incorporated

the facilities of this software in SAP only. Thus reducing cost and increasing efficiency.



3.2 Cash Flow and Corporate Finance

Our Company’s business success largely lies on an efficient Cash flow management as the business globally

operates on a Thin Margins.

Our business has identified the parameters that influence our cash flow and is listed as below-

Timely collection from debtors ( Special Attention for Critical cases)

Payment terms are considered while making purchase decisions

Done away with keeping idle cash in offices and at plants

Assessing taxation liabilities two days prior to actual payment to avoid keeping idle cash Requirement of cash is assessed on daily basis for short term investments and borrowings

There also exists suitable Monitoring mechanism for above parameters in order to exercise a control in

actual cash flow -

Credit limits are fixed on annual basis and actual outstanding is monitored on weekly basis

All vendors are paid on due dates

Financial statements are reviewed on weekly basis to know the cash position

Data for payable taxes is collected and accordingly funds are indented

Statements are made on daily basis for expected arrival and disbursement of money

Optimizing Capital Structure :There is a strong Focus on having a fair balance of Debt Equity ratio at Apex level in the Group , Corporate

Finance Group (CFG) continuously Tracks the Debt Market and also establish the suitable Cost of Capital

for each business scientifically.

Ready Mix Concrete in India is Expanding and due to this we are also engaged in a aggressive Expansion

plan involving installation of plants in multiple Location. We have institutionalized a process of ordering

the plant and to save on resources in such a way that asset idle time is minimized. Capex outflow is

planned such that assets are procured as per the Logical sequence of Work flow in sites e.g. Batching

plant is ordered only after finalization of land and the same is Delivered at site after completion of civil

work.

Evaluation of New Investment :

At RMC business we constantly evaluate the opportunities available in the market, decision are made for,

putting our own plant, taking the plant along with land on lease or taking on lease land alone. This all is

done to maximize our cash flows. Similarly plants are dismantled and shifted to other locations once we

start getting the diminishing results. We also follow a process to Evaluate each prospective New Location in

terms of its Socio Economical position and then decision is taken to commit an investment.

Bench marking: We have adopted a process of comparing financial data with the competitors and also

with Global RMC players regularly . This is one of the Key Ingredients for Future Improvement and

strategy.

Standardisation :- By Virtue of the years of Experience a (Standard Operating Procedure )SOP is

formulated in the business which helps in standardization and quickens the process of decision making.

Each and every Transaction is reviewed for the adequacy of approving authority as per the SOP . In case

there is a deviation if any, it is complied with. In extreme situation where Bad Debts have to be removed

from the Books , but still the same are kept in MIS, so that the responsibility of the person who sold the

material is never Diluted.



3.3 Company Secretarial and Investor Services

(A) Board and Committees

The Company’s Board is chaired by Mr.Kumar Mangalam Birla and comprises of independent

directors who are reputed and well known in their respective areas of work.

Meetings (Board / Committees)The Company has in place SOPs for conducting meetings of the

Board and Committees thereof and also general body meetings.

The agenda for the meetings are standardised to maintain uniformity. It is ensured that matters

which require approval of the Board are collected from the operating units sufficiently in time sothat proper notes can be prepared and sent to the Board. The agenda papers are circulated well in

advance of the meetings together with detailed explanatory notes. Upon receiving the Board

approval, the same is communicated to the concerned units for implementation.

The Board and the Committees are kept informed of the changes in relevant legislation and their

impact on the operations of the Company.

(B) Shareholder Services

The Company’s securities are listed on the BSE and NSE and its GDRs are listed on the Luxembourg

stock exchange. It has a large shareholder base of over 325,000 shareholders.

The Company has a Registrar and Share Transfer Agent through which it attends to share /

debenture holder services – transfer / transmission of securities / issuance of duplicate certificates /dividend warrants and other shareholder grievances. The Company continuously strives to attend to

the investor grievances and redressal thereof in the shortest possible time.

Preparation of the Annual Report and timely despatch thereof is critical. Company Secretarial

ensures that the Annual Report is printed and despatched to the shareholders well in time of the

Annual General Meeting (AGM). The AGM is conducted in a smooth manner and shareholder

queries are addressed by the Chairman to the satisfaction of the shareholders. The AGM also

provides a platform for interaction between the shareholders, Board and management of the

Company.

Dividend is paid out to the shareholders on the next day of the AGM.

Minority shareholders: all relevant information is made available to the shareholders (including

minority shareholders) at the same time. The Investor Section of the Company’s website is regularly

updated to provide current financial and shareholder related information. The Annual Report also

contains information beneficial to the shareholders.

(C) Corporate Governance

The Company is in compliance with Corporate Governance requirements under Clause 49 of the

Listing Agreement.

The Company has a:

- Code of Conduct for its employees including the Senior Management and Directors

- Code of Conduct for Dealing is Securities of the Company

There is no adverse observation by any Regulator and Auditor in our governance practice and by

any shareholder on our financial reporting.

(D) Compliance

Company secretarial is responsible for:

- Compliance with listing agreement / SEBI / Company Law/ FEMA / and other enactments

- Overseas compliance - the Company has subsidiaries in the UAE, Bahrain, Bangladesh and Sri

Lanka. Company secretarial is responsible for ensuring corporate compliance of these companies

The Company has SOPs covering applicable laws, procedural aspects, time line. The responsibilities

of each person are spelt out in detail.

Quarterly compliance statements are collected from the Units / marketing zones and the same is

reviewed and based on these reports, compliance certificate is placed before the Board by the

Company Secretary.



Compliance with relevant laws is critical both in terms of money and reputation. The Company is in

the process of implementing an on-line compliance management system to further strengthen

compliance and eliminate instances of non-compliance.

Security Creation

Many of the borrowings are secured in terms of the provisions of the loan. Company secretarial is

responsible for creation of security for these borrowings in a time and cost effective manner

keeping in mind the implications of stamp duty.

Legal and Regulatory Compliances-

The RMC division is particular in complying with the applicable laws, rules and regulations. Major laws

applicable in our business can be classified in two parts-

Tax Laws such as VAT, excise duty, deduction of TDS, service tax, Cess and Octroi. Since beginning

it is the policy of the division to comply with all the taxation laws in action and sprit. The finance

and accounts department regularly updates itself with all the amendments and in case of doubt

seek clarification from CFD and leading tax consultant.

The result of this prudence is that no major demand is raised on the division by any of the

department and wherever demands were raised, we approached higher taxation authorities and

got judgment in our favor. A few examples are as follows-

Service Tax department Gurgaon-Haryana raised a demand of Rs. 14.48 Cr on us treating the RMC

business as ‘Construction Service’. We argued against the demand in Tribunal and got judgment in

our favor.

Excise department-Nasik-Mumbai raised a demand on us treating RMC made at construction site as

excisable. We approached appellate authorities who gave judgment in company’s favor.

In nutshell we are not subjected to any demand from the taxation department in last many years.

Other than Tax laws such as pollution, Safety, Labor, Factories Act, Shop and Establishment Act etc.

We regularly follow all such laws.



4. Sustainability

Overview

UltraTech believes that in order for a business to be successful, it must fulfill its commitment towards

sustainability. In its Endeavour to do so, UltraTech’s focus has been on sustainable initia tives that address

environmental issues, contributing to business performance and its responsibility towards the society.

UltraTech RMC is dedicated in conserving the Natural Resources and is sensitive towards the sustainabilityaspects of its operations. This includes Environment, Health and Safety. All employees are expected to

ensure zero tolerance of any practices that could result in accidents and ill health, and contribute to

ensuring a safe working environment by taking the necessary measures and following the correct practices.

4.1 Sustainability Reporting

A sustainability report by our Organization gives information about economic, environmental, social and

governance performance.

Corporate sustainability reporting is carried out in UltraTech since 2008 biennially.

UltraTech takes its responsibility to conserve the environment very seriously, and its eco-friendly approach

is evident across all spheres of its operations. Its major thrust has been to identify alternatives to achieveset objectives and thereby reduce its carbon footprint. These are done through:

Waste management

Energy management

Water conservation

Biodiversity management

Afforestation

Reduction in emissions

Importantly, UltraTech has set a target of 2.96 percent reduction in CO2 emission intensity, at a rate of 0.5

per cent annually, up to 2015-16, with 2009-10 as the baseline year. This will also include CO2 emissionsfrom the recently acquired ETA Star Cement and upcoming projects.

UltraTech ‘s Initiative to also report Non-financial aspects in sustainability and CSR reporting, is a fairly

recent trend which is done by very few Corporate in India. Our intention to improve internal processes,

engage stakeholders in over all wellbeing of the Society.

4.2 Governance, Commitment and Engagement

A fully institutionalized system for adherence to Code of Conduct, Delegation Manual and Female

employee policy is in place. Structured Value workshops followed by interactive induction programs for

new employees are practiced to ensure that every Individual is aware on appropriate ethical behavior

organization expects.

Our business has a robust system of Accounting all financial transactions and classification of costs as per

ICAI guidelines. Various business transaction undergoes “Credit Worthiness” a system developed in house

to ensure that we do not get an over exposure on Credits with any of our Associates.

Corporate Governance in our enterprise deals with determining ways to take effective strategic decisions.

It gives ultimate authority and complete responsibility to the Board of Directors Corporate Governance

ensures transparency which ensures strong and balanced economic development. This also ensures that

the interests of all shareholders (majority as well as minority shareholders) are safeguarded. It ensures that

all shareholders fully exercise their rights and that the organization fully recognizes their rights. It includes

both social and institutional aspects. Corporate Governance encourages a trustworthy, moral, as well as

ethical environment.



*The concept of ECO Engineering was first given by Mitsch and Jorgensen by their Book “An Introduction to EcoTechnology.” 1989

4.3 Environment Management

For a business to become sustainable, it needs to reach a point where

economic imperatives work in harmony with environmental and social ones.

This is a supercilious goal and is likely to take a lot of effort to achieve in any

business. For this reason, we refer to sustainability as a journey, rather than a

destination. Like all journeys, it is important to know where you are going and

to have a plan for making progress in that direction.

ECO Engineering*: Ecological engineering is an approach of integrating humansociety with its natural environment for the benefit of both. ECO Engineering

deals with design, monitoring, and construction of ecosystems. We also

applied Principles of Value Engineering in terms of Improving Ecological Value

of Our Industrial Eco-system.

ECO - MAPPING:-The RMC manufacturing can be divided into three areas.

a) Raw Material Storage

b) Plant Process of RMC manufacturingc) RMC transport & delivery

The initiatives taken by UltraTech RMC

are explained in the Flow Chart below,

The Purpose of Marking Amber/ Red that

the Process is not yet Eco Friendly. Below

Flow Chart Depicts how comprehensively

our actions results Converts an Amber to a

Green.

Water Management is one of the most important concerns prevailing in ready mix concrete industry. A

ready mixed concrete plant site typically uses water for the following activities or operations associated

with concrete production and delivery:

1. Mix water for batching concrete loads

2. Washing the truck down at the plant site after loading

3. Washing the truck down after unloading at the jobsite

4. Washing the truck drum out at the end of the day

5. Stationary Reclaimer System; and

6. Dust suppression in the plant yard, around aggregate bins and stockpile sites, and truck load-out and

high traffic areas

The water used for the described activities and operations is not limited to only fresh water sources

(groundwater or surface water). In most cases, recycled water from process water treatment facilities or

storm water collection at the plant site is also used.

ECO Engineering

http://en.wikipedia.org/wiki/Human_society


http://en.wikipedia.org/wiki/Natural_environment

http://en.wikipedia.org/wiki/Ecosystem

http://en.wikipedia.org/wiki/Ecosystem

http://en.wikipedia.org/wiki/Natural_environment





Managing returned concrete: On a daily basis, at RMC we ensure how returned concrete will be managed

without adversely affecting the environment. Some of recommended solid materials management

practices that’s being adopted to reduce the amount of waste by-products that must be disposed are:

• Re–using returned concrete

• Producing pre-cast products

• Discharging to a mechanical reclaimer

• Using admixtures to stabilize concrete• Discharging at designated site

• Discharging to a wash water collection system

Admixture delivery & storage: RMC plants use a variety of admixtures as ingredients in concrete. In

general, these chemicals are liquids, which are supplied in bulk and stored in tanks in the batching area of

the plant. Most admixtures are now composed of non-hazardous, water-based materials. Although many

of these admixtures present a relatively low hazard to the environment and workers, some admixtures

have high aquatic toxicity and/or require worker protection and precautions in the event of spills or direct

worker contact. The most significant opportunity for leaks or spills occurs at the transfer points when

deliveries are being made. Bulk admixtures are generally stored in corrosion-proof & reinforced plastic

tanks. For more effective pollution prevention, we have provided secondary containment for admixturestorage tanks.

Air Quality Management: Ready mixed concrete plants generate and disperse varying amounts of dust

during routine operations based on location and local climatic conditions.

Depending on location and potential receptors in the area, concerns may be raised about the

concentration of “particulate matter” or PM (this includes all particles less than 100 microns in diameter) in

dust emissions. Local air quality can also be impacted by dust emissions containing PM2.5 (particles less

than 2.5 microns in diameter) and PM10 (particles less than 10 microns in diameter). These much smaller

particles also pose an occupational health and safety risk for workers who inhale these particles for

prolonged periods of time without proper respiratory protection equipment.

Dust and particulate matter can be generated from a number of locations within the concrete plant and

the plant property:

• Delivery of cement and fly ash releases during silo loading

• Delivery and stockpiling of aggregates

• Transfer points when handling raw materials

• Loading and drawing down aggregate bins

• Aggregate and cement weighing

• Truck mixer loading and charging

• Plant site equipment and vehicle traffic

Minimizing Sources of Dust Emissions

The plant manager’s air quality management program addresses the following objectives:

• Identify all sources for dust emissions that are released into the atmosphere from the plant and

property by plant operations.

• Collect airborne particulates from point source dust emissions through air filtration mechanisms

where practical.

• Suppress the airborne particles from fugitive source dust emissions generated from the plant and

property site.

It is important for any air quality management program to also consider local climatic conditions for the

plant site, with consideration for prevailing wind directions, average daily temperatures and seasonal

precipitation.



Dust Suppression:

Small water droplets, produced by water spray bars, are effective as a dust suppression measure. The dust

particles cling to the small water droplets, preventing the dust particles from becoming airborne.

Some best management practices are provided for dust suppression:

• Using a water spray bar or spray ring to rinse down the charge hopper at the truck mixer load point.

• Using a water truck with spray bars for wetting down plant yard surfaces and roadways.

• Wetting down aggregate stockpiles using water spray bars or sprinklers.

These best management practices are adopted for dust suppression would also require coordination with

water management for the plant site and property:

• Using spray bars for dust suppression at aggregate transfer points (e.g., at the end of the conveyor

belt which charges the aggregate bins).

• Installing a soaker hose or spray bar at the plant yard entrance f or mixer truck wheel wash.

Water used for dust suppression purposes should not be allowed to mix with surface runoff from the plant

property.

Dust Collection

Dust collection systems provide one of the best available technologies to prevent the release of dust

emissions from the plant (e.g., central vacuum collector system and baghouse with individual fabric bags or

cartridge filters).

Central vacuum collector systems have suction shrouds for major point source emissions (i.e., at the truck

mixer load point or at the cement weigh hopper) and the dust is pulled by the vacuum flow to a bag house

for collection. Individual fabric bags or cartridge filters can be installed at vents on top of cement and fly

ash silos to capture dust that is generated as the silos are being filled or drawn down.

4.4 Safety and Occupational Health Management

The vast majority of incidents at work are caused by unsafe behaviour. One of the biggest challenges, is

therefore to change habits and encourage people to ‘stop and think’ before carrying out a task. Work-related incidents are preventable and it is the right of every employee to go home well and free from

injury at the end of each working day. We aim to achieve zero lost time incidents, although, this is an

ambitious target, we at RMC are confident that this can be and will be achieved.

In view of effective implementation, we have constituted III- Tier EHS council. The committee is responsible

for the continuous improvement of systems pertaining to safety, health and environmental issues. The

objective of the EHS council is derived from the organizational objectives. We aim at:

Achieving Zero Incidents.

Maintaining prescribed pollution norms.

Facilitating good Health & Hygienic condition.

The EHS council also reviews the implementation process for enabling its maturity. Audits are alsoconducted at regular intervals to ensure compliance.

We are committed to provide a safe and healthy work environment to our stake holders by fostering the

culture of safe work practices and conditions. Our Safety In-charge ensures that safety system across all

business units are strengthened by way of educating stake holders, job hazard identification and

elimination, emergency control management, prevention of accidents etc.

Objectives are tracked through monitoring of control and result indicators, Target for these indicators are

set and gaps are identified time to time for bringing continual improvements.

In order to make availability of appropriate personal protective equipment (PPE) at right place, the

requirement matrix have been prepared and being reviewed periodically by Safety In-charge. To ensure the

availability of PPEs, the city head keeps account as per the matrix and the condition is monitoredperiodically.



All Near miss cases and incidents are analyzed as per the laid down procedures under Safety Incident

Management System. Plant heads and city heads investigate the incidents and conduct a Why-Why analysis

to find the root cause and take corrective and preventive measures to avoid recurrence.

Health & Hygiene

At RMC we take the following initiatives to create healthy work environment and maintain hygiene

throughout our business unit.

Provision of Hygienic eating places for workmen.

Training on hygiene to contractual workmen

4.5 Social Responsibility

As a good corporate citizen UltraTech concrete takes responsibility to control, minimize and eliminate

adverse impact of all operations under its control as suitable .The approach being a socially responsible

corporate citizen and to integrate with the community and promote collaborative projects on social welfare

with key partners.

UltraTech holds a coveted honor of being the First RMC company in India to publish CSR reports on GRI

G3A+ Guidelines , Our report is made on the Highest level of Compliance as per GRI guidelines and it is

being validated by a Third party. We maintain complete transparency of our process and publish it in apublic Domain.

The intention of the business is not only to earn profits but also to fulfill the obligations to the surroundings

on which we exist. Well defined program for the upliftment of the neighboring areas are initiated.

It is not possible to improve culture directly. Instead, it is necessary to work at improving factors that can

have a positive influence on culture. We at RMC have taken the following initiatives to improve the culture

& for developing positive influence on our employees.

Improve managers’ non-technical skills (e.g. communication);

Increase levels of workforce participation in safety related problems and solutions;

Promote good job satisfaction and moral;

Promote a ‘just culture’ where blame is only used where someone takes reckless risks;

Implement a competence assurance program to ensure everyone throughout the organization has the

skills they need to work safely.



5. Asset & Infrastructure Management

Introduction:

UltraTech RMC Division recognizes that Asset and Infrastructure Management is one of the key factors that

enables the company to serve the customers better and In a Industry which requires service Focus round

the Clock, plant availability plays a very important role, which is a function of Good Maintenance Practice

and Housekeeping. We give utmost importance in maintaining the Plant Cleaner, safer and healthier toWork. We are fully committed to imbibe this culture across the organization.

5.1 Infrastructure Management:

RMC Business is a learning organization ever since its inception in 1998. Initially the all plant maintenance

was handled by the OEM plant maintenance person and operators were put on under them to understand

the activities. Gradually all the operators took the charge of entire maintenance activity & help of OEM was

sought only for some critical issues. After further expansion of the business across the nation & the

competitive market condition, the scarcity of skilled operators/maintenance person led us to feel the

requirement of in-house training. This necessity was materialized in the form of a Gurukul Training School

in Navi Mumbai in 2008 which is based on ancient learning centers where the trainees spent days together

with the trainer to gain knowledge.

Plant Building & machineries, Transit

Mixers, Pumps are key assets to which

Company has a focused approach to

continuously monitor its efficiency on daily

and monthly basis corrective actions are

taken as and when needed to restore its

performance back to normal.

Company has also adopted an approach of

having a periodic 5S Audits which helps to

identify and highlight Key issues Area wise

and help to catch the management

attention in keeping the House in order.

Training is imparted to employees to help

them in sustaining the Infrastructure in

desired levels. Different learning modules

were developed & taught in the Gurukul

to the operating team. This included the

company staff as well as

contractors/vendors team as well. The

business also has adopted an approach of collecting & analyzing the critical

maintenance data such as maintenance

related counters, total numbers of

abnormalities found, Kaizens, 5S scores,

Equipment Tracking and Standardisation

Exercises. This is carried out with a front end application named REFLECTION through the existing VDMS

portal. The data is available to see and analysis for Operations Heads, Zonal Heads & Functional Heads with

various authorizations. RMC business has formulated Objectives for excelling in Maintenance Practices

which is in line with Business Vision and Mission. WCM model was adopted in July’2010 and formed Zone

wise Teams for RMC focusing on Equipment Maintenance.

Training Completed Through Gurukul

68%

32%

0%0%

2010-2011

Multiskilling

concrete technology program

Advance skill Development

program

83%

9%

8%0%

2009-2010

Multiskilling

concrete technology program

Advance skill Development

program

22%

44%

14%

20%

2008-2009

SAP Maintenance module

Concrete technology program

Advance skill Development program

Skill Development program

17%

46%

9%

4%

10%

5%9%

2010-2011

Skill Enhancement Program

Safety

Concrete Pump Operator

Plant Managers Program

Equipment Manufacturers

Soft Skill to BPO

VTS

32%

14%38%

10%6%0%0%

2009-2010


Safety

Concrete Pump Operator

Plant Managers Program


Soft Skill to BPO

VTS

59%

33%

8% 0%0%0%0%

2008-2009


Safety

Concrete Pump Operator/TM

DriversPlant Managers Program




5.2 Asset Maintenance System:

RMC business has implemented SAP – PM system

and it is used as a decision making tool in

inventory management, planning, and

maintenance activities & measuring efficiencies

of the existing equipments.

Since the business has large service orientation,

hence availability of the plant is a key successfactor. We are able to measure & monitor MTBF,

MTTR & OEE of various equipments. There is a

system to monitor all these metrics & improve on

our historical performance.

Plant maintenance is carried out with approach

to pay intense care on the equipment based on

criticality. The whole population of the

equipment has been sub-divided into 3 categories:

a. Critical: are those the stoppage of which will affect the production and any failure will have

environment/safety impact. Equipments requiring statutory requirement also are classified ascritical equipment.

b. Semi Critical: are those which do not normally affect production (standby equipment or process can

be diverted)

c. Non Critical: are those which do not affect production at all.

The above classification considers the severity of the equipment failure on the basis of Production, Safety,

Pollution, etc. Depending on the criticality of the asset and failure frequency of critical and semi critical

equipments, we have laid down a system, based on condition and time based maintenance. We

periodically review the schedule of condition and time based maintenance. All the maintenance activities

carried out are properly documented & analyzed. We also prepare Incident reports for major irreparable

Asset Loss and these are also utilized for identification of improvement opportunities.Maintenance Prevention is initiated in terms of Evolution of Teflon Bucket Stopper in the event of skip fall

due to wire rope snap that can minimize the scale of damage to the other structures on the weighing

platform. The initiative was tested for duration for its efficacy & then gradually rolled all over the plants to

replicate.

The business believes in use of Advanced Maintenance Practices that can add value by preventing manual

intervention at difficult to reach places & thus promoting Safety at the first place. It is demonstrated by

implementing installation of Automatic Mechano-chemical Greasing Units (Named Perma Futura) at the

critical places like cement/fly ash screw conveyors hanger bearings.

We have initiated to categories the Spares into Critical & Non Critical ones and maintain Min-Max list of the

spares critical for the type of the plant. The common kinds of the spares are maintained in the Central

Stores Location from where they are catered to the plant in necessity.

Plant Reliability: For root cause analysis of any critical breakdown we carry out Why Why analysis at first

instance. Thereafter other advance tools are used if required. All breakdowns and plant performance is

reviewed and immediate actions are formulated. Critical break downs and Creative Solutions are

captured and circulated among all Zonal, City and Plant heads.



Maintenance Cost Control:

In line with our goal of achieving Cost Leadership by

reducing the operation cost, the sub-committee has

developed a master action plan to achieve this goal.

Master Action plan is a document which helps us to bring

out the important issues, fix accountabilities and track the

performance in a continuous basis.

We follow a rigorous Budgeting Process, where thebudget is formulated in the beginning of financial year

keeping in view that the O&M cost shall be competitive

and spread evenly over the year, after considering the

major and minor maintenance jobs to be taken during the

year.

The Operation and maintenance Cost is closely compared

with the projected budget and is reviewed monthly.

The control and result indicators have been defined whichare in line with our business goals. These Control &

Results Indicators are continuously updated and

monitored. There is a system to review the progress of

planned maintenance activity.

Sub-committee reviews the Control & Results Indicators and master action plan. The finding of the review

meetings are circulated to all the various members who would circulate to the other employees of their

respective departments.

Life Cycle Cost

We have adopted an approach of Life Cycle Costing (LCC) for our various High value Procurement

Decisions, which was earlier based on Simple pay back. Life Cycle Analysis in Procuring High value Items

ensures in selection of an option which considers Interest , Depreciation , Maintenance Cost and Salvage

Value.

5.3 Ownership Culture:

RMC follows an approach to encourage the Operation Team to carry out Self maintenance; Operator

carries out the maintenance activities like Cleaning of Equipments and fixing the problem if it is minor in

Nature. Operation Team also takes a regular stock of activities pertaining to Scheduled maintenance Check

list.

RMC business practices a system to identify the sources of fugitive emission, Leaks and Spills in plant which

is discussed in Daily Plant Meetings and a suitable countermeasures and corrective actions are taken

involving the concern People from Plant Operations & Maintenance.

Each plant Practices 5S to maintain Orderliness and Cleanliness, A Checklist comprising of the actions and

status report is in place.To motivate and encourage Shop floor Employees, Sr. Management team including Plant Head, City Head

and Zonal Heads take scheduled rounds in all plant area.

47%

11%

7%

7%

6%

5%

5%

4% 4%

4%

Maintenance Cost

Breakup

MIXER

QC LAB EQUIPMENT AND LAB TOOLS

CONCRETE PUMP (OWNED)

SAFETY ITEMS

TOOL AND TACKLES FOR BATCHING PLANT

BLOWERS/COMP FOR CEMENT FEEDING

BATCHING CNTRL SYS (PC & MANUAL STATION)

MAIN DG 180KVA ( PLANT PURPOSE )

AGG WEIGHING & CONVEYING SYS(SKIP TYPE)

SILOS & CEMENT FEEDING(CONVYR & WEIGHING



6. Supply Chain Management

6.1 Sales and Operational Planning (S&OP)

At Ultratech Cement Limited Ready Mix Concrete Division, we understand the importance of the service

factor in the business where Supply Chain Management plays a key role in delivering the quality concrete

to the customer.

To improve the performance of the Supply Chain, the process whose cycle time is measured is - Incomingorder from end customer to execution. We have recently replaced our Old COMMAND ALKON system with

OPS which offers effectiveness of S&OP.

• Replacement of COMMAND with OPS

Replacing the existing Order Management Module – Command Alkon from US with an SAP based

Order Processing System – OPS, 100% based on inputs from each function of the business.

An OPS is essentially designed to allow the following:

Capture 100% orders, collected by the marketing

Allow for a data based analysis of Market Potential

Tracking of each order from the inquiry stage to payments received against the same. Linkage between the Inquiry QuotationPurchase OrderSales OrderDCInvoice /

Credit note / Debit NotePayments received. The flow diagram is given below

Historical data tracking for the Price changes and negotiated PO documents

Tracking of Credit limit /Capture Denied Orders / Scheduling of Orders

Analysis of orders executed/ Order Loss / Denied/ reasons for non execution

Analysis of On time execution of orders and measuring the same with respect to customer

satisfaction in terms of timely deliveries

Measurement of Service delivery levels with regards to On Time Execution of Orders

• Vehicle Data Management System: VDMS System is a GPS based Vehicle Tracking and Data

Management system used in timely deliveries of the Concrete. It helps us to manage following

Integration of Order With Ticket

Integration of VTS data with OPS, to allow a single platform for reporting of all logistical data – (TM/Pump)

To allow for automated online Billing of TMs & Pumps

To allow for performance analysis of TM, Plant, Pump, Vendor performance.



• Pump performance analysis application –

The application presents the snap shot of the pumping operations in totality with respect to all the

Operational and commercial data required for Pumping operations.

The application captures the Order level and delivery level details for the parameters:

Order Quantity

Pump Quantity

Order Loss

Pump Operational Efficiency Operational Hours of Pump

Variance between planned and Actual

parameters of pumping operations.

Pump Engagement

Idle time of the Pump

6.2 Supplier Engagement

Procurement Principles, Plans & Procedures of RMC Business

“Procurement is the art of acquisitions of Goods and services in exchange for money, with the growing

complexity of modern Industrial Organization for Production, Mass Consumption and Mass distribution.”

In RMC Business, being a core service oriented Industry all across to plan, work & floored our Procedures in

accordance with Market condition & trends. We follow some Principles for an objective are:

• To maintain continuity of supply to support scheduled Production and other Production needs.

• To do so with minimum of Investment for economic and safe operation.

• To maintain the right quality of purchased materials based on Pre-determined standards, technical

specification and its suitability.

• To procure at the lowest Possible cost consistent with quality & service requirements.

• To avoid duplication of Procurement resulting in wastages and obsolescence.

• To maintain the UTCL’s competitive Position in the market in so far as Procuring and other

associated concerned.

• To create Good will for the company through good buyer – Vendor relations.

We follow basic Principles of Procuring commonly known as 5 R’s. These serve the company to establish

system for evaluation, selection, performance measurement & improvement to their performance in

various aspects. They are as follows:

Right Price – It is the Primary concern of our organization to procure our RM at the Right Price. But

the right price need not be the lowest Price. Proper negotiation also helps to determine the right

Price. In Our business it is established fact that the cost of Material is equal to or lesser than the

transportation cost involved.

Right Quality – It implies that quality should be available and measureable with our standards. In

order to determine the quality of RM, detailed sieving data informed / educated to our Vendors.

Right Time – Our all Procurement team Personnel’s are aware & ready with lead time information.

Lead time is the total time elapsed between the recognitions of the need an item till the item

arrives and is provided for. Obviously, this covers the entire duration of the materials cycle andconsists of Pre-contractual administrative Lead Time, transporting lead time and last but not the

least Testing lead time.

Right Source – The source from which the material is procured should be dependable and capable

of supplying RM with uniform quality. In emergencies, we also explore Open market Procurement

through Trader too. In our business we establish source approved & then processing our Purchases,

so that economic ratio should not escalate & disturbed.

Right Quantity – In our business the storing space of RM is limited; we can store our Inventory only

up to maximum of 2-3 days. Thus, the right quantity is the most important parameters in buying

concepts like economic order quantity, economic Procured Quantity with fixed period & fixed

quantity systems.Cement order Placement & tracking - Incoming Cement for Mumbai Region



Cement is the basic Raw Material

for the production of Concrete.

For all plants located in the Cities

of Mumbai, Navi Mumbai &

Thana, a separate team of 2

individuals has been created since

2008. This team is responsible for

100% supply of cement to thePlants and dedicatedly only work

to ensure that cement is not in a

short supply to the plants and in

times when the cement supplies

are an issue the maximum

supplies are provided to priorities

as set by the marketing team.

Since, Raw Materials consumes our 65% profit realization ratio, we started our own Mining &

succeeded gradually in last One - two years and as well Long terms Tie Ups to reduced our cost of RawMaterials :

• Owned Mining – We had started owned Mining at all Zones and succeeded gradually in this

direction. Currently we have 3 Mines in operation i.e Palsai / Wada and Dakiwali in West Zone

for Mumbai RMC Plants and Bomalramaram in South Zone for Hyderabad Plants.

Apart from above an initiative already taken for owned Mines at Nashik, Pune, Ahmedabad,

Bangalore, Chennai etc so that our dependency on other source could be reduced v/s cost

benefit. (please refer to mining strategy on the next page)

• Long Term Tie Ups – Apart from Own Mines LTTU is also methodology adapted all across the

country to reduce cost of Procurement. We entered into agreement with Mines Owner/Crusher

Owner with annually indexed fluctuation on fixed rates on ex basis for fixed location, so that

cost of procurement cost is reduced substantially. There are some locations where fluctuations

are more vis a-vis market trend, we have linked the rates with market trend so that we works on

win-win situation. Currently, such profile are extra-ordinarily extended in Mumbai, Pune, Nashik

Plants where we have maximum LTTU. This is achieved only after making advances against

Proper Bank guarantee of Nationalized Bank.

• Dedicated Transportation module – Since, all the above two points could be success on cost

front when we have dedicated fleet to transport these materials at their cost of risks. Similarly,

as per LTTU we have attached dedicated fleets lesser then the market rate with flexi terms of

increase in i.e Diesel, Toll, Octroi etc at the location i.e Pune, Mumbai etc. In adverse condition

when gap created between market & supplies, in this module we are rarely effected out of it.



6.3 Throughput Management

Throughput Management in RMC is important and needs to be reviewed every month in terms of Capacity

of Plant, TMs and Pumps. Engagement of TMS and Pumps with respect to Orders and Plant capacity is

reviewed and optimized. The requirement of TMs and Pumps are managed dynamically based on the

feedback for the volume forecast, opening / closing of plants. In addition, we carry out relocation of assets

from one plant to another within a city cluster to optimize their output based on the volumes/potential

volumes from a specific plant.

Order Entry,

Planning &

Scheduling -

12hrs - Order

TakersCustomer

Interaction

for daily

orders

Marketing

Based on the Tickets issued

by the dispatcher Batching

takes place at plant

Batching Systems

Delivery Challans are printed

Delivery - On route

TM’s Monitoring-

By CRM Cell

VTS )

Onsite Monitoring

delivery - Through VTS,

using the voice units

By CRM cell, site supervisors

Credit Check at the time of order entry.

If available allows to proceed else stops.

Can be overridden after appropriate authorization

Command

Return- On route

TM’s Monitoring-

By CRM Cell

VTS )

TM’s mobilized to site -

By production in-charge /

Production supervisor based

on the Ticket

The Dispatcher

issues the ticket

as per plan 24X 7

At Plant

Ultratech Cement RMC Division has institutionalized to ensure that the deliveries are prompt and as per

the customer’s expectation. This is achieved by setting up a system where the Customer has Easy Access to

contact “UltraTech Concrete” 24 x 7. Customer can place orders as also know the status of his current

order. This also updates the business about the status of orders received against the order delivered.

With this as the background, UltraTech Cement Ltd. – RMC Division decided to deploy a centralizedDispatch System by deploying ERP Systems like SAP, OPS, Vehicle Tracking System – MZone, Quality System

LABSys etc. and has set up a Centralised Dispatch Centre for each City.



Deliveries can be ensured to be on time only when we have a very powerful and dynamic order booking

system, which permits us to have best possible planning. The planning should be dynamic enough to allow

changes as and when needed, based on the ground realities.

Working towards this end, we have deployed a very powerful order taking system - OPS . We need to

ensure that the personnel working on the same are appropriately trained to use the system.

6.4 Inventory Management

In order to increase the plant uptime we have implemented following to standardize key tools of RMCBusiness are:

• Distinguished Central ware houses or Store in city / Zones – Being multi directive & distantly

located units it is essential to have better control on common Inventories i.e Stores & Spares,

Consumables etc. We have identified centrally located stores in City / Zones so that regular

inventory can be kept & down time of Plant could be reduced in exigency. This also reduces

Inventory Carrying Cost at all locations, as commonly spares are readily available with us. The

such spares comprises approx. 60-70% of major wear & tear parts of Plants.

• Min Max Levels – Have implemented Min Max Inventories all cross the locations with key

drivers our Stores Personnel. The sanctioned Inventories are placed properly in the Plant & an

auto system generates / alarms re-ordering of materials once it comes below its level. In case of

more consumption beyond planned Min Max levels, the users take extra sanction for ordering

of the Inventory.

• Sampling system of Raw Materials – Distinguished a transparent system for sampling at arrivals

of Vehicles at Security. The Security gives numbering system for the vehicle arrives & the same

number been sent to quality deptt for testing of vehicles. This helps to create transparent

system of quality check of only material not with name of the Vendors. Once it is accepted &

approved by Quality then Vendors challan sent to stores for preparation of Final GRN along with

artificial challan.

• SAP implementation – Properly SAP implemented starts from Security gate with arrival of Raw

Material to our Batch Cabin for final Product been sent to Customers. This also connected with

additional software i.e Labsys etc for checking of Quality & conversion to SAP.

6.5 Product Life cycle Management

Concrete Recycling: UltraTech Concrete is the First Commercial RMC Company in India to adopt Concrete

Recycling technology where more than 50% of Raw

material from rejected or unused concrete is recycled for

making fresh Concrete. This is a Green

environmental friendly initiative which helps in a

effective Solid waste management and conserving the

Raw material which is non replenishing Natural

resource.

With installing Concrete Recycling Plant, all the residual concrete in transit mixer and concrete pump will

be brought back to RMC plant instead of dumping it somewhere in open within the city.

With the help of Concrete Recycling Plant, both aggregates and used water will be recycled and used back

in the process, as our commitment to sustainability.

Development of Thermocon ( durable and Hi strength Concrete): It is produced with chilled water / ice

flakes from state-of-the-art water chillers/ice flake plants, which controls the temperature of the concrete

and maintains it within acceptable limits. The other ingredients used in this concrete are also thermally

controlled to bring down the temperature within acceptable limits at the time of placing. This considerablyreduces the ill-effects of high temperature like thermal cracks, plastic shrinkage, faster drying of concrete,

formation of cold joints etc that results in the extended life of the civil structures.



7. Market and Customer Orientation

Prime Objective is to ensure consistent value delivery to the customers in a highly competitive and volatile

market like ours and where the commodity nature of the business limits scope for differentiation. We have

been able to break the barriers of commoditization through relationship management, value added

product, differentiated quality and service.

These are attributes that we have focused on in order to create the customer centric approach across the

organization.

7.1 Market Orientation

(a) Physical Marketing Organization: In Ready Mix Concrete business, UltraTech is present in 36 cities.

Entire RMC business at country level has been divided in 6 Zones and each zone has been divided

into cities. We have institutionalized centralized marketing approach. In order to move closer to the

customer we have set up Zonal offices in different regions at strategic locations to get advantage of

synergy.

Recently we have carried out peer analysis for benchmarking our organization’s performance vis a

vis others. In this regard, we have taken a decision to revisit our organizations structure also, so that

it can be made more effective. As an initiative, we have converged the role of City Marketing Headand City Operation Head in 4 cities.

(b) Marketing Strategy: To fulfil over business strategy of growing our RMC business profitably, we

have segmented the market based on user segment and project size. The categories are as follows:

User Segment

1. Govt./Infra

2. Residential-Regular

3. Residential-Mass Housing

4. Commercial-Regular

5. Commercial-Institutional

6. Industrial

7. Others

Project Segment

1. Large Projects

2. Mid-Small Projects

3. Retail

4. Micro-Retail or IHB

Every month we collect volume projection from our existing projects that we are supplying as well as from

our new projects. This projection (pour forecast) is used for the planning and execution of the targeted

projects.

Further this segmentation has been refined over a period of time to have better understanding of market.

Volume based segmentation is used to understand the direction of industry growth and long term

sustainability of business. Our segment wise sales is analyzed annually during P&B exercise.

To further strengthen our marketing strategy, we have taken the project of redefining the segments, based

on customer need and his sensitivity. For this purpose, study has been done in Mumbai region and, new

segments have been defined as:

1. Price sensitive

2. Service level sensitive

3. Quality sensitive

Further work is happening on this front to evolve the systems, through which we can continuously monitor

our customers based on these segments and offer our services more profitably, as per their need. Once this

system is rolled out, senior management shall review the performance in each segment on quarterly basis

as well as the basis of segmentation annually.

(c) Market Analysis: As mentioned earlier also, to map out customers need and preference, we have

revised our segmentation definition. As per customers’ need we shall strategies to focus the

segments, which can be served profitably, and accordingly shall position UTCL RMC.Ready Mix Concrete shows a strong correlation with Infrastructure spending and Cement Demand, Industry

expansion. It is sensible to follow Projections of Cement Industry and Infrastructure Projects in terms of

New Capacity additions to estimate the Growth Potential.



(d) Structured Market Development: We have a system of analyzing the data of each prospective city,

for expansion of RMC business. In annual P&B exercise, we review the data on all prospective cities,

which are proposed in next three years. Then along the year, we get the prospective markets

surveyed and if results are promising, we start the process for establishing a RMC plant. New

markets are chosen based on the current potential and scope for the growth, in those markets.

Data of cement consumption in a market is used to arrive on the potential of concrete requirement

in that area. One snapshot of the cities identified during P&B exercise is given below.

7.2 Customer Focus

In our business we maintain customer focus in all the marketing activities. To understand the requirement

of customer our marketing team regularly meets all the touch points of customer like purchase, planning,

project execution and quality. We continuously strive for betterment of our services and set tougher

targets.a) Capturing Customer Voice: To establish a two way communication channel with our customers

following initiatives have been taken:

(i) 24X7 customer call centre: We have developed and deployed a customer support desk

based out of Delhi / Bangalore. For any type of enquiry or complaint customer can contact

this number, and that will be replied within two working days.

(ii) Website: Customer can also contact us through our website.

(iii) Post Pour Feedback: Like any other service industry, we also measure our performance after

every pumping pour. For that, customer is asked to rate our service level after every pour.

Once in a month this data is compiled and analysed.

(iv)

Customer Satisfaction Survey: Once in every two years, we get the customer satisfactionsurvey done for UltraTech Cement and RMC. Earlier, this survey used to happen along with

cement business. This year, we are getting the survey done for RMC separately.

(v) Meeting with key customers by senior management: Senior management and functional

heads always maintains good relationship with key clients, by regularly meeting them and to

also understand their requirements

in future.

Apart from this our marketing team contacts

customers regularly at sites through leads from

existing customers/projects, by voluntarily visiting

customer sites, leads through StructuralConsultants/Architects, etc. We also use our

network of channel partners (Sales Promoters) to

connect with customers, as they are in constant FlexibleModels

PurelyDedicated

Dedicatedcum

Commercial

LeasedCommercial

AssetPurchase

MarketingAlliance



touch with customers for their cement requirement.

(b) Customer Engagement: To meet customer needs, we modify our offering. One the best example for

this, is our flexible model of dedicated plants, where we have entire gamut of options, as per customer

needs:

Launching Value Added Products and Services

We as an organisation strive for giving the best available products to client as per their specific need which

can add value their projects. In this direction we keep on developing Value Added Concrete (VAC), as perthe specific needs of the construction industry. At present following are the products under VAC portfolio:

New product development and launch is

being jointly carried out by the QC and Marketing department along with the marketing department. The

need is identified or generated for a new product through capturing voice of customer / Technology

scanning / Competitor data. Then we select the performance data for the product and do the lab trials

accordingly. After successful lab trials, we analyze the data and do some pilot trials. After successful

completion of trials, product is ready for commercial launch. After this we brand this new product andpromote it in the suitable projects.

(c) Managing Customer Relationship: To enhance our engagement with customers, today UltraTech is

present in many of the segments of building and construction material, so that customer’s requirement can

be fulfilled at “one stop”.

To enhance our service level to customers, we have taken an initiative of Delivery within 60 min. We

strive to reach the customer within 60 minutes of the mutually agreed delivery time for each order. We are

monitoring our service level on this front continuously and improving it.

Complaint Management System: As soon as customer project team raises any complaint (verbal/written)

regarding quality or quantity of supplied concrete, the concerned marketing person immediately gathers all

the relevant data. At the same time complaint gets forwarded to QC department to check all the data at

our end.

A Cross functional team comprising of marketing and QC visits the site within one working day and

addresses the complaint. After successful resolution of the complaint, we take the letter from client about

the closure of complaint.

Target for resolving these complaints are set as 30 working days for Quality related complaint and 7

working days fir quantity related complaint. In every fortnight meeting with marketing team, data on all

the unresolved complaints and new complaints is being reviewed and discussed. To further improve the

monitoring complaint resolution process, we are developing software for CMS, which shall automate the

complaint resolution monitoring as well as integrate the credit note process.



Internal Supplier -Customer Orientation

Supplier-> O&M SCM Marketing Commercial HR QC

O&M ⊗ ⊗ ⊗

SCM ⊗ ⊗

Marketing ⊗ ⊗ ⊗ ⊗ ⊗

Commercial ⊗

HR

QC ⊗ ⊗ ⊗ ⊗

At UltraTech Concrete, a methodology is adopted to strengthen the Internal Customer supplier links and

collective delivery a role of departments as supplier, customer and its impact ultimately in the increase of

external customer satisfaction.

Various departments meet their customers regularly to understand their QCDIP requirements and

accordingly the parameters for their satisfaction. It is measured periodically and areas of improvement are

converted into plans of action.

• Information is shared, discussed and deliberated by the department head with all the departmental

colleagues.

• We conduct meeting with internal customers, identify their requirements and evaluate the

deliverables

• We prepare action plan, implement the actionable points and conduct periodic review of action plan .

Commercial

Ready Mix concrete Division Accounting Team works very closely with the Marketing and customer support

Team in monitoring the credit limits and supply approvals time to time through SAP and OPS (Self

Developed software).

The billing is done online and a batch sheet for each vehicle along with the constituents of the mix is

generated upon the completion of loading of each vehicle, as well as Invoice. Any kind of billing related

issues are attended and resolved by the accounting team and credited/debited to the respective accounts

within 3 working days.

Supply chain

Supply chain team coordinates continuously with the various plants located in the city for procuring the

raw material from our registered vendors or any other vendor, in case of emergency to support the

customer requirement. This team also takes care of procuring good quality Transit Mixers and Concrete

Pumps, to support the customer operations on time.

Operations

Operations team, along with the Marketing team plays a crucial role in the execution of the orders. Site

checking is conducted a day before any major pour to find out the feasibility to lay the pipeline for

pumping of concrete, Transit Mixer movement at site, for any staging requirements etc., for smoother

operations. Once the site checking is completed and clearance is taken from the customer, we will plan for

the operation. Once planning is completed, Concrete pump will reach the project site at least 2 hours

before to lay the pipeline in an optimized way to reduce the wastage of concrete and effective pumping.

Batching and loading of concrete starts at plant once the clearance is taken from the Pump Team and

Customer/Engineer at site for loading the vehicle.

Transit Mixers and Concrete Pumps are under continuous monitoring of the operations team to maintain

the quality of the operations along with the Transit Mixer Drivers and Pump Operators.Our Application Engineer (AE), who takes care of concrete workability, will be available at site till the

completion of the operation in case of any major pours and tracks the Transit Mixer movement and

quantity confirmations.



We will maintain fixed contracts with our transit Mixer and Concrete Pump vendors and make them

responsible in case of any disturbance at site during the pour. They will take the accountability and

compensate the customer in case of problem from their end. Our operations team conducts weekly/

monthly performance review meeting with the Transit Mixer and Concrete Pump vendors to monitor their

performance.

Our customer support team prepares the monthly reports of the Transit Mixers and Concrete Pumps to

measure their performance, based on which evaluation of vendor performance is done.

Proper feedback is taken from the customer at the end of the pour regarding the performance of theoperations team and reviewed on monthly basis.

7.3 Brand Management and Business Corporate Communication

UltraTech RMC is part of UltraTech Cement business. Hence Brand Management and Corporate

communication process is being handled centrally by cement business Marketing Services team.

Customer-Supplier Co-creation Model

Through our dedicated plant model, we graduated from Project Partnership to Project Ownership model in

order to bring the overall project efficiency and improve and deepen our customer relationship. It also

brought in the desired expertise from the cement and RMC Team to bring in the value through every cycle

of the project through Single Point

Contact, which makes life of a Project

Manager much easier.

The dedicated plant model flanking the

commercial RMC segment provided a

strategic edge to UltraTech over its peers

not only in terms of profitability but also

the Market Share and the closer customer

connect. The Strategy to Execution cycle is

explained in the adjoining diagram.

Identifying and bridging the gap between

our offering and the customer’s

expectations was the most significant

challenge in execution of this initiative.

We surmounted it by involving the

customers in the whole solution development process and through leveraging each-other’s expertise.

The number of Dedicated Plants has grown from 6 in FY07 to

32 in FY13.

The Project Ownership Collaboration is flexible and dynamic

with a futuristic view and as explained earlier the execution

cycle is designed in way such that it would incorporate

continuous improvisations through experiential learning and

which will always keep us ahead of our competitors.

Our collaboration is based on the foundation of sharing and

optimization of resources and leveraging mutual expertise

which entails long term sustainable relationship with the

customer which will always keep us ahead of competition

through continuous innovation and improvisation as demonstrated on next page:



Customization

Plant Constn TM Pumps Cement Aggregate Manpower Operation Example Sector

Solution # 1 √ x √ √ √ √ √ √ L&T Metro Rail

Solution # 2 x x √ √ √ √ √ √ B.L.

Kashyap

Urban

Infra

Solution #3 x x x x x x √ √ Raheja SEZ

Solution # 4 x x √ x √ √ √ √ ITD Port

Solution # 5 √ √ x x √ √ √ √ Prestige Realty

Solution # 6 x X x x √ √ √ √ DLF Software



8. Quality Management

8.1 Identifying Opportunity

Quality is linked to Strategic Plan: Quality planning process is carried out to meet the target set in our

business plan which includes Various Grades and VAC (Value Added Concrete) development. Products

Quality is included in Annual Plan in Terms of Volume, Raw materials and its Cost.

A Target/ Budget Volume of Ready Mix Concrete is decided for the whole year with plant wise, Product

wise as per Market Demand and also as per specific requirements of customers. On day-to-day basis, the

production and quality plan incorporate issues based on specific customer quality requirements, In order to

track our Performance on Target a Daily/ Monthly / Year to date (YTD) is monitored continuously and

corrective actions are taken on observed deviations.

Identification of Critical Quality requirements of Key Business Processes: RMC has a system of

Identification of Critical to Quality (CTQ) Requirements for business processes like Delivery, Product

Design, Cost and Deviations is identified in each of the process. Corrective Actions are initiated in case of

deviation observed.Identification of Strategic Quality improvement opportunities considering Benchmarks / Best in Class:

Strategic Quality Improvement plan is initiated considering benchmark as well as business plan, Use of

Tools for measurement and analysis: Scatter Diagram, Histograms, Why-Why, Fishbone diagram, etc. are

being used for quality measurement and analysis.

8.2 Quality Assurance and Improvement

Pursuing the key differentiator in

product – “We make Good Concrete

Better”, UltraTech Concrete has a well

established Quality Systems in place,

to ensure the uniformity and

transparency of standards across all

locations. The whole endeavor of the

team is to ensure product performance

with economy.

All of the UltraTech Concrete plants

are certified under ISO 9001: 2000

standards with a clear Quality Policy in

place emanating from the Top

Management.

Quality Appraisal System : UltraTech Concrete has a Quality Plan which is aligned with the Annual

Business Plan incorporating Productivity, product mix , new Product development and clearly defined

Quality Objectives with responsibility for adhering the quality parameters within the acceptable limits. It

also mentions about the authority for approving the deviations to ensure business continuity by effecting

the appropriate corrections to ensure conformance of the end product – Concrete.

In order to put Quality as the most important performance criteria , we have institutionalized Quality as

respective Quality teams’ KRA’s for the evaluation of individual’s performance as per our HR processes.Roles and responsibilities of various functional people is well defined in terms of quality and it involves

various activity starting from the raw material source identification, procurement of raw material, inward

testing of raw materials, acceptance criteria for the raw material, rejections and communication of



rejections to the vendors, stacking of raw material, concrete production process, Sampling of fresh

concrete, sample casting, curing of samples and testing of samples at desired age and customers

complaints, if any.

All the tests on raw material have a defined minimum frequency. To cross-check for the accuracy of

internal testing and as per the clients’ requirement, some tests need to be carried out at third party

laboratory, periodically as per the quality plan.

The basic raw materials for producing Concrete are Cement, Aggregates (of different sizes), Sand, Water,

Admixtures and Additives. Often, we use supplementary cementitious material like Flyash, GGBFS, Micro-

silica, Metakaoline etc. as a part replacement of cement, which impart better durability related properties

to the Concrete. It is interesting to note that same raw material are used for the manufacturing of M05*

grade which we use for manufacturing M80 grade. The difference lies primarily in the proportions of the

various raw materials. This proportioning is referred to as the Mix Design. There are broad guidelines given

by the Bureau of Indian Standards (BIS) through IS 456. Hence, in Ready Mix Concrete (RMC) Mix Design

play a very important role. The Mix Design process is a combination of Science and Art. A few Scientific

steps provide a starting proportions then a trial mix needs to be made to assess the performance of the mix

and necessary adjustments based on the experience have to be made for the optimum performance of the

mix.

All the critical tasks which have a direct and indirect effect on quality is identified and trained to all the

operating personnel. It covers all the key processes - right from Raw Material sourcing to Concrete Pouring

at site.

Quality Control and Improvement

UltraTech Concrete has an online Expert Quality Management System (EQMS), procured from M/s Contek,

Canada named as “LABsys”. This is a Central Server based system which can be accessed from any plant

location on ABG intranet. This EQMS has capability to record the raw material properties, Mix Design based

on different methods, sampling details and recording the test parameters for the samples drawn. It also

has a capability for the statistical analysis of the compressive test results. As a “process control” for the

batching operations, LABsys has a unique feature of “Batch Alert” where the target weight for each batch

is compared with the actual weight of each raw material weighed for every ticket. The system has a

capability for escalating such pre-defined out-of-tolerance limit batches to different levels in terms of

sending auto-generated s.m.s.

UltraTech Concrete is certified to ISO 9001-2000 in the year 2010 which has been renewed and

revalidated. There is a Systematic internal and external Audit system exists to ensure that the Quality

System Comply to the Quality standards as per ISO 9001 - 2000. Appraisal cost covers a wide range of

components to make it effective. The components covered for Audits are Products, Process, planning &

development, production process, Procurement, Sales and Distribution, Training and Recruitment, Storage

etc.

There are various Approaches followed in our enterprise for exercising Quality control and itsimprovement.

Statistical Quality Control (SQC) Techniques are used extensively. Online process controls, Control

provided by Labsys enable us to plot the performance trend of any of the parameters.

System deployed for measuring, analyzing and improving Service Quality of Non-Production areas:

Systems are in place in non-production areas like store & purchase, finance, etc., for improving service

quality

Quality Function Deployment is used for capturing Customer Voice and Converting that into ProductQuality Characteristics and then to Process Parameters for process control. Product Design incorporates

Reliability features to the extent that our Product specification is based on customer Requirements.



As the raw material properties differ from place to place, every plant people are free to conduct the mix

designs and generate the trial results. These trial results are analysed by the respective superiors and a

Central Approval of Mix is accorded based on the performance parameters. Each mix recipe in Labsys is

given a unique code as per pre-determined coding method. Only Approved recipes can be uploaded in

Labsys.

The performance parameters are defined for conformance. All the cube compressive results are analysed

statistically and based on either over-performance, Optimization of recipes are taken up or in cases of

underperformance, recipes are adjusted for the desired performance. In one word “Product Must PerformAt All Times” is the base philosophy for UltraTech Concrete.

*M denotes that it is a designed mix and the No. denotes the Characteristic Compressive Strength of a 150 mm

cube sample cured for 28 days in MPa (N/ mm2)

Sample Statistical analysis for the Cube compression test results

The Batching plant weighing scales are calibrated regularly as per the frequency defined and every

calibration is recorded. As production control, moisture content in the fine aggregates is calculated at-least

three times in a day and adjustments are affected to ensure the consistent quality of Concrete.

“Service Quality” in RMC is to ensure maintaining the product quality up to the point of placement, we

need to ensure the quality of concrete during transit and while pumping the concrete. Most of the Transit

Mixers (except those at Dedicated plants) are equipped with the Vehicle Tracking System (VTS), where in

addition to tracking the position of the Transit Mixers, it is fitted with a few sensors which keep a track of

drum rotation direction and speed and also any water addition into the drum through a Transit Mixer

system. The system is configured to generate the alerts on the exceptions, thereby ensuring the quality of

concrete up to the placement point.

New Product / Technology Development

Since concrete is an engineered product and due to its

negligible shelf life, a quick decision making and

structured approach is a pre-requisite. Hence, proper and

regular training to the technicians, operators and quality

engineers is very important. In fact a robust Quality

Systems and a trained manpower is a big differentiator in

this business. UltraTech has its own training centre –

GURUKUL which imparts the training to the workmen

regularly.

There is a self-sufficient quality control Laboratory at each

RMC plant. All the equipments are calibrated as per the

defined frequency to ensure the correctness and

consistency in results.

UltraTech Concrete creates awareness on matters related to handling of fresh concrete, curing etc. by

distributing leaflets etc and through personal interactions too. It also conducts training sessions with someof the big customers’ supervisors/ filed engineers on correct sampling processes, compaction, curing etc.

We understand that RMC is a business where the Raw Material Cost is the major cost element. Business

profitability can primarily be achieved by constant benchmarking the Mix Designs. This benchmarking is



done in two ways – one we track our performance vis-a-vis the Budget, second we benchmark our mix

designs with the competitors.

UltraTech Concrete believes in differentiating from others. We have come up with an array of Value Added

Products to cater for some very specific customers’ requirement. Following is the array of our Value Added

Products:

Additionally, UltraTech Concrete has a structured online complaint recording and handling system. An MIS

for the complaints is shared with the respective Zonal Heads and corrective and Preventive actions aredrawn.

8.3 Extension of Quality Management to suppliers/ Partners/Customers and Projects

A system of visiting supplier’s facility is carried out to monitor and improve their product quality and

service performance.

Backward Integration: Cement manufacturing Facilities

Our Key Raw Materials are Cement and aggregates. There exist an efficient Network of UltraTech Cement

plants, Grinding units and bulk terminals. These facilities help us to ensure a continuous supply of Cement

across nation.

Backward Integration : Aggregate Mines

A decision to own Aggregate mines in Key Geographies are taken. The Management have decided to put

extra Focus on the New Aggregate Business and would make it as an independent SBU in future and also

serve a purpose to supply RMC. The Aggregate Mines is Operated by our Trusted Contractors who jointly

participates into implement QMS at the Aggregates mines

Collaboration with Following- Bomanite for stamped Concrete

-

Dedicated RMC model

Joint meeting with our supplier and customers are arranged for understanding of customer requirements

with specific reference to the supplier.

Customer service specifically technical meeting is regularly carried out besides supplying quality product

just in time. Many of our Lab/R&D equipments are used regularly to do special application testing of

customers’ product.



9. People Management

The main objective of People Management is to partner in best practice implementation by ensuring the

development of the current talent through robust Talent Management process and finally placing them at

the right position as per the desired career planning and succession.

9.1 Employee Relationship Management

Employee Relations involves in maintaining employer-employee relationships that contribute tosatisfactory productivity, motivation, and morale of the employee. Employee engagement is a well

practiced competency in our organisation which gives a clear feedback on communication, empowerment,

business alignment, managerial effectiveness and other factors.

Communication

Information’s are provided to employees for a better understanding of management's goals and policies

and the new processes for the implementation. Zonal Review meeting are being held monthly for deciding

on the future plans of the upcoming and existing plants which are coordinated by the Zonal HR in the Zone.

There are plant meetings organized by the City HR in selective plants on quarterly basis where people

issues are addressed and then the issues are later on being taken up by the Zonal HR with the Head HRduring Zonal HR Reviews known as “Pratigya”. Pratigya is being organized quarterly by the HO HR to have a

common understanding about the people processes among all the HR in the zones and plants. Café HR is a

common platform where by all HR colleagues get together for sharing knowledge in the field of HR,

Operation, Marketing, and Logistics. The E-Magazine “Pulse” has been recently launched which captures

Business News, HR Initiative, Safety Initiatives, Product Feature “Know your Product”, People Ne ws, Pulse

Crew etc.

HR Manthan

In line with the business plans an HR Leaders Confluence was convened for the first time in 2011 to

articulate the HR strategy as we prepared for the next leap. Such a conference was the first of its kind in

cement. 14 HR leaders from across units got under one roof over three days to brain storm, ideate and

conceive plans of HR alignment in line with business growth. Five task forces were formed in the areas of

Learning & Development, Recruitment, Policy Compliance, Statutory Compliance and Organization

Structure.

Employee Engagement Survey

The transition from OHS to “Vibes survey” was made to Converse, Connect and Change with the

employees. Vibes created a deeper personal conversation with employee, Vibes focused more on

stakeholder feedback rather than one size fit for all. It was successful in capturing the employee opinion on

critical aspects of their workplace and their take on the future of the group. Vibes survey is done biennially

and it is driven from the Group HR. The changes were brought to highlight following.

Workforce Outcomes: To achieve these objectives, we need to have a workforce that believes in our values

and is driven by our differentiating strengths as an employer (our brand). That workforce must also grow

with us and contribute to the leadership that we need to run our Businesses. The way we measure those

outcomes is through measuring perceptions of the EVP, Engagement, and Culture.Enterprise themes: Both

EVP & Engagement have strong correlation to Enterprise themes and their outcomes are most influenced

by the enterprise themes. While Culture does not have a direct impact & it’s an enabler. If we take

appropriate action on these themes, we will drive improvements in the workforce outcomes, which will

help us to achieve the organisational success we desire. Business Themes: This year Business were also

given the choice of adding 2 more themes in the Enterprise theme which they felt was important to them.

Most businesses picked any 2 theme & employees of these Business where asked additional questions.Apart from management cadre surveys we have also done staff satisfaction surveys internally to gauge the

engagement and the satisfaction level we have started this initiative from this year.

Wellness



In the fast moving life, there are many pressures that an employee has to deal with- running a home raising

children and handle the tight deadlines at work. Through EVP launch we have introduced life enrichment

programs for our employees of management cadre all across. We have been tied up with employee

assistance program such as “Vitamin H” and “Santulan” which helps employee and the family members in

any issues regarding official and personal matters. This helps in reducing the stress level of the employee

and enhances his productivity.

Enhancing the quality of life and keeping in mind the uncertainty of life of our employees we have

benefitted our employees with 100% coverage of Nischint policy for the entire management cadre andlaunched Sunischit for all the staff.

9.2 Work Environment

The process for RMC operation is segregated into 3 parts:

1) Plant operation;

2) transit of finished product &

3) Pumping & pouring operations.

A separate training module is developed, incorporating Safety Standards for the executed activities. All

employees are trained based on the TNI matrix & re-fresher training conducted as per frequency defined in

training calendar.Safe Work Procedure (SWP) is developed for each activity performed in RMC operation for injury free work

environment. 5S, orderliness & position of people (Ergonomics) are part of the Safety behavior

improvement process which is practiced by every Senior, mid-level management & line management. In

this respect high rise for laptops have been provided to the employees.

Annual Safety action plan defines the key safety initiatives with their KPM (Key Performance Measure) & is

aligned with the Key Performance Index (KPI) & the long term goal of 0.4 LTIFR & Zero fatality by 2015.

A III – Tier Safety Council reviews the KPI (Key Performance Index) and initiates policy decision at their level

& escalates it to the next level for management approval.

Periodic audit in the 2-phases is conducted to sustain the improvement initiatives as well as for ensuring

horizontal implementation. The audit is initially done by the owner of the process viz, the Plant Head, City

Operation Head & Zonal Safety coordinator. The corporate Safety cell of UTCL initiates the 2nd party Safety

audit for verifying the score as mentioned during 1st party Safety audit

Monitoring, measuring and sustaining improvement in work environment

To facilitate whole hearted participation of the employees, a work environment of continuousimprovement and problem solving is encouraged. High performance teams owning an area/ process /

operations/ equipments etc form a work environment of excellence. Such layout of an RMC Plant with

proper segregation, cleanliness, maintenance of standards, arrangement and discipline has led to solving

the problem at the source by saving the space and time, keeping the work-place, machines/equipments

clean, and serving the customer better. Monitoring and measuring by the professional staff in all the test

facilities has improved the quality and durability of concrete.



9.3 Performance Management and Competency Building

We have a structured Performance Management System where at the beginning of the year unit objectives

are identified from business objectives which is further percolated down to department objective and

individual objectives with clear linkage and weightages. PMS is done to measure performance of each

individual against set goals, to provide a formal means of open, honest and constructive communication

between the employee and his / her Manager on employee’s performance and develo pment, to enhance

employee development through performance feedback, to measure and document job performance for

activities such as compensation changes, promotion, talent management and career moves, this enhanceto establish a culture in which individuals and team takes responsibility for continuous improvement. For

Managers, the process of performance appraisal is one of the most important leadership responsibilities.

We make sure that the performance dialogue happens between manager and employee this is ensured by

receiving a mail by employee for link to get the feedback about having a dialogue.

Process of Appraisal System in Poornata

SR

NOPROCESS STEP DESCRIPTION TIMELINE

1 Goal Setting In the beginning of every year each individual must set

his KRAs in consultation with his/her manager in Onlinesystem poornata.

April

2 Mid Year This is half yearly review, and feedback is provided in

Poornata by the manager after having performance

dialogue.

October

3 CADD - Competency

Assessment

Discussion

Document

While performance review concentrates on what we

achieve, competencies look at it from a softer

dimension. Assessment is done on

functional/Behavioral Competencies.

October

4 Annual Appraisal Annual performance is reviewed based on which Rating

is captured in poonata.

April -

May

All the employees (management cadre and staff) appraisals are being captured in the HRMS Poornata

which is reviewed and monitored 6 monthly and annually by the managers and process owners. The

increment letter are also taken out of Poornata.

Market correction for high performing staff was given last year to benchmark their compensation with the

median of the business, this enhanced their motivation level.

To align the performance management system with the business objective “Appraiser Capability Building

Workshops” are organized to improve the effectiveness of performance appraisals reviews by managers.

However, review offers an excellent opportunity to not only review performance, but also

create high performing teams and build a long term relationships among the teams.

We have a process to do a post appraisal communication to all the employees once they are through with

the appraisal process, this bring the transparency and the common understanding among all the

employees about the normalization.

Leadership team has initiatives and safety as weightage in their goals so as to give importance to the

ideation and safety so that it benefit to the social aspect of the society.

Competency Building

With the scarcity of technical skill sets in the market and the war for talent, competency building and

capability development had to become a part of our culture. As an important action area of early OHS and

Vibes, learning started playing an important focus. Capability building facilitates career progressions

thereby retaining employees.



My Development Plan This year business has taken to launch a new initiative for employee development

plan which captures the development needs in one place and helps in building the emotional connect

between the employees and the development plans. It also creates a seamless experience to the employee

and has the full flexibility for employee and the manager to track and update progress made. The whole

process has been aligned with the performance management system so that the competencies can be

reviewed during the review period. The 9 Behavioral Competencies and 70 Functional competencies are

addressed in the plan through E-Learning courses of class room training which are designed through the

help of the MDP report. A awareness program was created regarding this initiative. A E-Learning course“Yojana” was mandate to have an understanding of the MDP Process

Job Rotation

To enable competency building through functional and cross functional movements, job rotation served

the immediate business need of upscaling competencies providing enriched options to employees to meet

their career aspirations as we grew. The cross functional movements were initiated for Chemists, people in

Operations, Quality Control and Application Engineering. Many of the eligible chemists in Ready Mix plants

were promoted to Plant Head and Plant Quality positions. The same was done for BPTOs (Batching plant

operator) who were promoted to plant head roles. Other cross functional movements happened with

people moving from Operations to marketing, Quality Control to Operations and Application Engineering to

Operations. The challenge was to change the mindset of managers who did not let go high performers for

better opportunities

Multiskilling at Gurukul Training Centre

With RMC being an unconventional and nascent industry, there was a scarcity of front line operators to

keep pace with the aggressive growth plans of UltraTech. To strengthen in-house capabilities, RMC division

rolled out a skill development programme and multiskilling programme. Multiskilling program is the first of

its kind within the Group; it has acted as a catalyst to provide specialized manpower in line with business

needs

Cross functional training was introduced with on the job training. Content was designed with the help of

suppliers and vendors. ―Gurukul was formed in 2008.The two main programs that were designed for Multiskilling and Fresher training were :

1.Skill Development for Fresh ITI recruits and Skill Enhancement training for the freshers

2. Cross Functional Training /―Mulitskilling for existing skills

9.4 Talent Management and Retention

A structured on-boarding process is imperative for smooth settling down of a new joinee making him

productive at the earliest. This entails the detailing out of all elements, starting from the basic hygiene

factors (infrastructure, forms completion, etc) to the big ticket items of business overview, interaction with

key stakeholders, etc. All employees who join UltraTech Cement are taken through a structured induction

process. However, given the scale and size of our spread, the challenge is to give a uniform experience toeach new employee who comes on board. At UltraTech, we believe in investing in new joinees at the start

of their career as this goes a long way in keeping them more engaged, connected and productive. They

become brand ambassadors to the Business / Group and also support in reducing attrition in the first 12

months of joining.

Career Portal – Xpand

A unique initiative was taken to take care of the career progression for management cadre in Cement

Business. To provide better visibility in terms of career and probable avenues of growth, an Online Career

Portal – XPAND was provided to employees where entry level skills and exit level skills have been defined.

Career paths (functional & cross functional) were mapped for all positions upto 2 levels. Xpand has unique

quality for on-line self assessment tool for evaluating career choices. Xpand is also integrated with Internal

recruitment system for a complete end to end career management tool and better visibility for career

decisions.



We have CEP (Continuing Education Policy) courses for the Talent Pool members who are being planned for

the succession manager in the line of leadership pipeline. We have also tied up with SHL for the assessing

the person during the interview to match him with the job which is known as Person Job Match (PJM). We

have trained senior level recruiters with expertise with “Competency Based Interviews” with the tools

“STAR”.



10. Information Management and Technology

The objective of Information Systems in Ultratech RMC Division is to enable RMC business in streamlining

and increasing Agility, Accurateness & Efficacy of the business processes and assist management in

decision making.

10.1 Strategic Information Planning:

IT team proactively analyses the business needs from time to time in two dimensions one the Company’sInternal processes and second the processes which influence customer experience with the company.

Systems are build around these two facets with a objective of enhancing Quality, Profitability and

Customer Experience.

A detailed IT roadmap had been prepared & discussed with senior business leaders after getting an

understanding of business plans & challenges faced by them.

The nature of RMC business in terms of its large spread in the country and production setups managed by

small teams, Zero Shelf Life of Finished Goods, Large Fleet to deliver the Finished Goods pose some major

Challenges. The IT approach to address these are as follows:

Challenge IT Approach

- Ensuring Quality of Goods - “LabSys” Quality system which controls the QA

process from Design to Delivery of Ready Mix

Concrete of required grade.

- Less Skilled Manpower - Centralised Order Management system coupled

with QA system and PLC based Batching Control

Panels leaves only Starting and Stopping the

production process with the Person at Plant, rest

all controlled by the systems.

- Keeping track of Fleet delivering Goods - GPS enabled VTS System to keep track of “Turn

Around Time” of Transit Mixers. Automatically

maintains full record of Transit Mixer’s run in terms

of KM/Trip and the reporting times at Point of

Interests, like “At Site”, “At Plant”, “Pouring” etc.

Even the subsequent payments to Fleet vendors

are validated against these records created by GPS

system.

- Movement of existing and setup of New

Batching Plants in very small time

intervals and within limited budgets

- SAP’s Project Systems being used to define WBS

and Budgets involved and then subsequently

tracking actual against these budgets.

- Roll out of New Plants in System within week’s time

enabling the Plant to operate from day one with

desired automation levels

- Collecting and Disseminating Customer

specific information to the Customers

- A Single Window “Customer Information System”

providing Internal stakeholders the complete

information on Customer’s Orders, Dispatches,

Credit and Payment Status. A system extendable to

Customers and usable with near zero training.

- Consistency of Process

- Applying Business Controls, Checks and

Balances

- Compliance and Regulations (Central and

Regional)

- A Centralised System with unified business controls

for internal checks and balances and configured

differently for regions as per Compliance and

regulations requirements.

- A system which is not fully dependent on

Company’s Wide Area Network and can run on

Internet with same efficiency

- Safety - “MySetu” system for Safety Incident reporting for

Improved Safety awareness and reduction in

accidents



10.2 Information Management:

RMC continuously analyses the trend in all performance and financial measures to ensure efficient

operations, provide value added service to customer and improve return to stakeholders. There exists a

comprehensive and regular management decision support systems. Some of the key initiatives to flawlessly

manage the Information are as follows:

Sr.No. Objective KPI Achievements

1 Business Continuity Availability of Systems >99.5%

2 Data Backup and Security Compliance to IT Policy 100%

3 Access Controls Compliance to IT Policy 100%

4 System Administration Application Performance 100% as per design

End User Support:

24 X 7 IT Helpdesk facilitated with centralised Call logging system has been operational throughout RMCbusiness for receiving user complaints, tracking call closures, escalations when required and analysis of

calls is in place. Available Since 2009

In order to efficiently provide first level support to end users, POWER USERS for various applications have

been identified and they are given regular trainings.

Analysis of Business data:

Leading indicators of business performance is not limited to financial data alone. Quality, Operations,

Customer Satisfaction, Innovation, Market Share metrics like these often reflects overall health of

Organisation. In order to track both financial and non-financial measures and reinforce new competitivestrategies MIS are the critical inputs.

The Management Information System (MIS) is based on the principle of close loop feedback control

system. They generate the information for monitoring key variables / productivity indices controlling the

performance of critical success factor. The various MIS prevailing at RMC are:

VDMS

Profit Variance Analysis

Reflections

Stores & Spares Stock analysis Daily Production Report

Market Realisation

Quality Data

Raw Material Stock Report

Man power Deployment O& M Analysis Monthly



10.3 Information Technology

Deployment of the Business Strategies:

Deployed Symantec Endpoint Protection Management server (2009) for virus control in PCs & is

upgraded to new architecture (2013)

System Center Configuration Manager (SCCM) deployment beef up the patch management

process of the IT assets. With this we have better control on IT inventory monitoring,

management & deployment of software. Installed active directory ABGPLANET domain (2009) for single directory structure across the

business for common policy deployment, it is upgraded to latest OS (2013)

Deployment of WEB MAIL & Linux based Mithi Mail server (2009) for portable mail access & reducing the

license cost annually.

Utilize the Strategic collaborations done for IT at the Group Level

1. Procurement of standard hardware & software as per MOUs of Corporate IT. Utilized various corporate

strategic collaborations for procurement of various IT systems & services:

Unified Communication System LYNC

Video Conferencing equipments POLYCOM &

TENDBERG

E-Learning

Poornata

Adityadisha

Onstream

ABG travel portal

Video Streaming Servers for live telecast

IT Organization

IT infrastructure operation re organized to enlarge the arm of support services to reach less reachable areas

(like RMC, Marketing Sales depot, BT etc. ). Zonal structure has been incorporated for seamless support to IT

users of different divisions (Manufacturing, Marketing, RMC, BT & Depots). With this change now same

workforce supporting entire cement business users with less inventory & travel.

86 WAN links established to inter –connect all RMC Plants and Offices across the country for running the

central IT services across business.

20 Servers of latest configuration (central & local) are used to host the required applications and related S/w

components.

Provided 1100 Computers & Laptops & 170 printers among 1200 users with Gigabit LAN connectivity to

utilize the IT services.

Our all remote or mobile users (78 users) are connected through secure VPN.



Integration of Video conferencing equipments with

DT/LT based LYNC unified communication tool for

instant audio/video chat, training, Meeting & project

collaboration equipped in fast decision making, less

travelling & communication cast reduction.

Wi-Fi LAN connectivity in needed area enabled the mobility / portability in working, meeting &

instant connectivity to users.

Established the DR (Disaster recovery) infra setup for business critical applications at Hyderabad to

minimize the impact of any turbulence at our Primary Data Centre in Mumbai.

For security of Information asset implemented Information Security Management System in units as

per ISO 27001 standard.



11. Systematic Innovation

In line with Vision and Mission Statement, UltraTech RMC’s encourages improvements and believes that

big improvement are initiated from the small problem solving and integrating such small- small

improvements results in a Breakthrough Innovation. Involvement of employee in this process is of

paramount importance. In order to unleash innovation Potential, Best Practices are highlighted and

replicated horizontally across the Plants.

11.1 Developing Culture for Continuous Improvement and Innovation

Kaizens / Suggestions : An approach of participative management wherein employees are motivated to

sense the problems, conceive the idea to overcome them and implement novel ideas into practices

through Continuous Improvement (Kaizens)

RMC has a structured “Kaizen Scheme”. This scheme was formally started in 2012 with aim to recognize

and encourage the ideas for improvement.

The objective of scheme is

Engage employees toward continuous improvement activities. Improve communication between Management and Employees.

Encourage team working in the organization.

Motivate the employees in Developmental Activities

The Kaizen scheme is administered by HR and every month Kaizens are collected in each zones, there are a

Panel of Judges who rates the Kaizens based on the Merit. The Winners are rewarded and Process is

monitored thru “Reflections” (Software to track important parameters).

Product Innovation: Product Innovation begins from any of the following sources

a)

Product developed from Customer’s specific need. b) Voice of Customers thru survey

c) Competitors Products

d) Ideas germinated from International Journal.

e) Internal Research

UTCL RMC has developed arrays of Products apart of the general Products over the period of time. This

area is strongly focussed by Sr. Management intervention and an internal Target is laid down by extracting

the Revenue of around 25% from Value Added Products (VAP)

Service Innovation: UltraTech distinctly differentiates its competitors thru Service related Innovation. UTCL

holds the coveted honour of being the First in the Indian RMC Industry to use GPS system for Tracking the

Transit Mixers and Improve on Delivery System .

Historically Turnaround Time is the major source of dissatisfaction among the Customers . Our New

System Keeps a track on Each Vehicle, optimises the Route Plan based on the priority and ensures that our

agreed delivery time will 90% of time will comply the time schedule.

Business Concept Innovation: There has been a continuous lookout for a Business concept Innovation, to

differentiate our Competitors. In this line UTCL –RMC was the first to venture into the idea of Dedicated

Model. Where the idea is to operate and maintain the Plant at Customers Premises. UTCL devised many

variant of this model and today we are one of the most successful RMC operators in the Nation. This Model

has given us a great Leap in the span of 2009 – 2012 and catapulted our capacity to more than 100 Plants

and put us as the market Leader in the Country.



11.2 Collaboration and Networking:

Excellent Enterprises worldwide are using networking and Collaboration into their strategies, operations,

and processes. UTCL RMC as an extended arm of Cement Business which is more closer to customer uses

Net working and Collaboration in many ways to improve the ecosystem.

Collaboration with in Ready Mix Players : UltraTech is a founder member and active affiliate of RMCMA

(RMC Manufacturing Association of India) the purpose is to share best practices and also to take up

common issues to the regulatory authorities or Government . RMCMA has laid out a framework which

broadly guides any single Plant to adopt World class practices and inculcate safety culture.Networking with the Technology Suppliers : As the Largest RMC Operator, UTCL continuously work with the

TOP three major Suppliers like M/s STETTOR , M/s SIMEM and M/s LIBHIER and keep itself abreast of

latest Technological Development.

Efforts are made to engage with these suppliers thru Knowledge lectures in CHO meets in Hyderabad and

Mumbai.

11.3 Management System to Support Innovation :

a) System for gathering market data, environment change through Regular Market Survey:

A third party is engaged for collecting data on Market , Customers and analysing what impact are we

making in Customer or Environment . These data is suitable studied and becomes one of the input forstrategy formulation.

Gap Analysis: Gap analysis is done against industry standard and same nature of market. It also analyzes

gap between its competitors data. Customer audit results also highlight the gap between best supplier and

UTCL.

Competitor Technology Analysis: Being continuously aware of the ever-changing market dynamics, UTCL

collects, maintains and analyzes technology / data on its competitors, which

Includes RMC India, ACC, Lafarge etc. There are several new initiatives derived by this activity as man

power rationalisation, Adequate design of Micro Silica Feeding system , Adequate design of Chilling Plant

for Producing Temperature controlled Concrete.

Benchmarking: UTCL has a system of gathering information about its competitors. These information are

utilized for Bench-Marking as well as process improvement and also for building strategies.

Inter Sector benchmark: While comparing RMC Business, Many a times analogy was drawn with PIZZA

business, which works on the same principle of delivering multiple products as per customer demand with

in shortest possible Time .

Our Team has visited Domino’s Pizza Delivery system and brought out features by which we can carry out

Inter sector Bench mark.



11.4 Customer and Competition :

UTCL focuses on Process, Product and Service related innovation to attract Customer and remain

Competitive.

In order to maintain our edge in the market and attract newer customer segments, the Value Added

Product development is taken up by Technology Scanning using technical journals, internet, seminars,

conferences, technical exhibitions etc. and also by capturing the Voice of Customer.

VAC

Competitor’s

Products Usage Status

Wet Mortar Mega RM12BL

(Lafarge)

Ready Mix Mortar for

brickwork

• Product Developed

• Pilot – Q1 FY’14

Under progress

Exposed

Aggregate

Concrete *

Artevia, Lafarge Decorative concrete, used

in Pathways, Porticos &

Vertical Finishes

• Identified for R&D

R&D & Market feasibility

expected to conclude by

Q2 FY’14

Ultra HighStrength

Ductile

Concrete *

Ductal –Lafarge•

Architectural structures

• Retro-fit structures

• Bridge Decks

• Blast resistant structures

•

Identified for R&D

• R&D & Market feasibility

expected to conclude by

FY’15

Self Curing

Concrete*

Hidratium -

Cemex

• No curing is required.

Eliminates usage of Water

• Green product.

• Product dev – Q2FY’14

• Evaluation – FY’15

Anti-bacterial*

Concrete

Stericrete -CEMEX

•

diminishes bacterial

growth as compared to

normal concrete

• Suitable for Hospitals,

Pharmaceuticals,

abattoirs etc.

•

Identified for R&D

• Product Development –

Q2’14

FY’15

11.5 Knowledge management

We believe that the “knowledge” is the primary “Raw Material” for any systematic Improvement and

organisation adopts a systematic approach to impart and share the knowledge among the employees.

There is a clear distinction between the TACIT knowledge (Which is difficult to be transferred) and explicit

knowledge (which can be transferred thru Communication), The Knowledge Club initiative focuses on the

Explicit Knowledge and all such initiatives are identified propagated and also tracked for its implementation

thru a system known as REFLECTION.

The REFLECTION is a Software Made for tracking various initiatives related to Non numerical Data like

tracking of important Initiatives, Abnormality management, Kaizens, Water consumptions, sustainability

related issues.

The Data is monthly updated and is available for all the members to seamlessly view the performance of

various plants together.



Collection and Sharing of Knowledge:

Knowledge collection and sharing among customer and supplier is through interactions during the

Customer visit. Organisation takes initiatives that such opportunities of Knowledge Transfers are increased

thru employee interactions, Various Functional Meets like CHO Meet (Operations Head Meet), Quality

Meet (Quality Head Meet) , Commercial Meets on various aspects like Taxation , Accounting , Negotiations

etc.

The best practices are shared with latest information on technology and products.

Sharing Best Practices

Sharing of best Practices is carried out thru knowledge Club. Plant teams are encouraged to do new things

which can result in improvements. Once such improvements is completed and established then it is

reported to HO in form of a Report. HO carries out Validation of consistency and Safety check and then

propagates it across the RMC.

Operation Parameters are reviewed monthly and is analysed in HO for entire RMC with plant wise analysis.

This is shared across Zones with deviation in terms of mitigation plan and how do we keep the

performance back in track. This communication goes to each Zonal Leader with Volume, Maintenance Cost,

Water Consumption, Power Consumption etc from the desk of EP.



12. Technology Management

Post Industrial Revolution the world has seen a tremendous change by virtue of various technological

breakthroughs. This contributed in over all development of nation as well as the world. Mighty

organizations have collapsed simply because they did not keep pace with changing technologies. Being

alert and implementing leading edge technology has benefited organizations through tangible savings and

substantially improved their competitive edge over their rivals. To be the best one has to be technologically

competent.

12.1 Management of Technology :

a) Technology Evaluation

There exists Systems for assessing emerging technologies related to Products, Processes and Equipments

which involves the Team of Functional Experts who engages in evaluation of Various Technology Available.

The comparison is done under numerous parameters and accordingly a set of comparison is done to help

us in identifying right Technology.

A periodic Meeting with the equipment manufacturers is carried out. Equipment suppliers are also called

in CHO Meet which happens annually to share the latest in Technology with large group of Operations &

Maintenance People.Batching Plants

Batching Plants of various Manufacturers are compared with more than 50 parameters in order to bring all

perspectives in appraising them objectively. These parameters are then grouped into major aspects like

Safety, Productivity, Ease of Maintenance and Service support.

These Technical appraisal helps not only in deciding the right Equipment , but also help our vendors to

improve on aspects where they score low.

Pumps

In line with the Batching plants Concrete Pumps are also compared objectively on various parameters

including Delivery height, Energy Efficiency, Robustness, operating cost etc. to decide on the Type and

Make of Pump on certain location.

Auxiliary Equipments:

A part of the Main Equipments , Organisation also focuses in Auxiliary Equipments like Air Blowers , DG ,

Additive handling , Chilling Plant etc.

Compressor / Blowers

Material handling is one of the Major challenges we are facing. Various types of Material Handling system

is being studied for Delivering the Cement, Fly ash in silo and analysed on parameters like Power

Consumption, delivery time , Initial Cost and recurring cost .We have come up with the of an analysis

which was un conventional in RMC Industry that Hi Volume Low Pressure Compressors are more suitable

for our application , The Pressure of 1.5 Bar gives us an optimum output with very higher delivery volumes

in minimum time and results in saving of Electricity.

Chilling Plant Imported Vs Indigenous

In order to start with first Chilling Plant , we had gone with one of Globally Best Plant (KTI) however in the

Next wave of Chilling plant addition we are comparing KTI with Indigenous Manufacturer. We are

demanding the Feature of KTI from few Indian Chiller manufacturer. One of such party has developed a

Chiller at half the Price we incur from Imported machine.

Solar Power

In order to reduce our carbon footprint and protect our self from the risk of rising power cost, we have

decided to venture into partial substitution of Solar Power and put part of our Electrical load to Solar

Panels . We are initiating this in our 10 plants on a trial basis. The Solar power Vendor was chosen after

objectively screening five Vendors



Powering TM with CNG in selected Cities

An initiative to Power TM’s with CNG is in advance stage of Implementation and We are the first in RMC

space trying out CNG as a primary Fuel for TMs. This initiative requires a slight modification in the Engine

and there forward we can reduce the Diesel consumption significantly.

Technology Absorption: Speedy and smooth absorption to the new technology is done by properly

planning resources before hand. Cost analysis is done based on requirement and life cycle analysis.

Customer’s requirement, safety, cost are taken as priority regarding this type of technology absorption.

After all the analysis are done, approval from top managements are taken. All recourses like manpowerrequirements, training requirements, spares, tools, maintenance schedules, checklists, etc., are prepared

for a speedy absorption to the new technology.

12.2 Research and Development: Though UltraTech RMC Division does not focus on R&D as a Core business, But it is in continuous look out

for an opportunity where we benefit from the R&D based Institutions and universities and adoption of

Proven technology on the Technology Front.

We work on such different areas as binder technology, concrete, aggregates and admixtures and adopt an

interdisciplinary approach to take advantage of the organisations strong vertical integration in the

construction materials value chain. We fore see opportunities, threats and challenges in the industry, and

at the same time strive to find creative solutions that improve the service life of structures, increase theenergy efficiency of buildings, use recycled materials, and foster safe and healthy practices.

Product Development

Research and development related to New Products are

carried out with a view to generate Value added Concrete

(VAC) for customers through end user oriented products and

services.

Ultra Tech has developed and Commercialised an array of

new Product classified under VAC. The Organisation put a

definite target that around one fourth revenue shall be

achieved by Marketing New Products.

wcm application 2013 (2)

Documents