Gujarat Ambuja - Cost Leader in the Indian Cement Industry
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Case Details:
Case Code : OPEA002
Case Length : 16 Pages
Period : 2000 - 2003
Organization : Gujarat Ambuja
Pub Date : 2004
Teaching Note :Not Available
Countries : India
Industry : Cement
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Excerpts Contd...
Logistics
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Cement, being freight intensive industry, various initiatives had been taken up
by GACL to streamline its logistics.
GACL was one of the first cement producers of the country to introduce an
Integrated Logistics System (ILS). At each manufacturing unit, a cross
functional committee was responsible for the efficient management of logistic
functions.
The committee met at regular intervals and reviewed the working of the total
system. The recommendations were forwarded to the top management for immediate
action.
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Order Processing Systems
Order Processing Systems involved the flow of information about the orders
from generation to order fulfilment. Orders once received, had to be processed
quickly and accurately. GACL had linked all the major offices through a Wide
Area Network (WAN). Electronic Data Exchange (EDE) and Material Resources
Planning (MRP) systems facilitated timely and accurate processing of orders...
Future Outlook
In line with the company's vision to become the leader in Indian cement
industry, GACL had been pursuing a combination of strategies like strategic
alliances, capacity expansion, new plants, and aggressive takeovers. The
company had set up a two million ton Greenfield cement unit in Maharashtra
at an investment of Rs. 500 crores...
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Exhibits
Exhibit I: Indian Cement Production
Exhibit II: Major Players in the Indian Cement Industry (2003)
Exhibit III: Demand & Supply by Region
Exhibit IV: Plant Locations and Their Capacities (June 2003)
Exhibit V: Capacity by Region: GACL & Its Subsidiaries (2003)
Exhibit VI: Cement Capacity in India (Break up by process)
Exhibit VII: Power Cost
Exhibit VIII: Fuel Cost
Exhibit IX: Cost of Production
Exhibit X: Expenses
Exhibit XI: GACL - Summarised Profit and Loss Statement |
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