UltraTech cement

Business volatility has been a part of life for the last 20 years. UltraTech Cementendeavoured to keep the organisation nimble with proper risk management procedures in place. 

In the context of business volatility last year, the company saw a fall in prices of various materials at the beginning of the year and an increase in the latter part of the year. The risk management guidelines helped it significantly. So when prices were falling, the procurement team brought down the forward cover ratio to the lower end of the limit and again around May when they felt the prices have bottomed out, they increased their forward cover to the upper limit of the band.  The focus on customer centricity has helped expand the market share by winning the confidence of customers by offering customised solutions and value added services.

Indian companies have an advantage when it comes to management expertise and making technical improvements with a focus on efficiencies. One area where companies need to significantly scale up is the entire process regarding product development, business development and technology, where western companies are far ahead.

There is a constant thrust on improvement. UltraTech reduced energy and logistics cost and increased the proportion of energy generated from waste heat resources. A structured approach and rewarding people for innovative ideas for efficiency improvements has helped it stay ahead of the curve. It is also relooking at supply chain. It has over 30 cement manufacturing locations, and it is important to know the inventory to be maintained. The company is developing flexibility to use multiple raw materials and fuels so that it can optimise cost depending on costs.