 INTRODUCTION:-

UltraTech Cement Limited  is leading cement company and the country’s largest exporter of
cement clinker based in Mumbai, India. It has an annual capacity of 23.1 million tonnes. It
manufactures and markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and
Portland Pozzalana Cement. It also manufactures ready mix concrete (RMC). The export
markets span countries around the Indian Ocean, Africa, Europe and the Middle East. It is part
of Grasim Group.
UltraTech Cement Limited has five integrated plants, six grinding units and three terminals two
in India and one in Sri Lanka.
UltraTech’s subsidiaries are Dakshin Cement Limited, UltraTech Cement Lanka (Pvt.) Ltd. and
UltraTech Cement Middle East Investments Limited

 MISSION & VISION:-

 Vision of the company:
 To be a premium global conglomerate with a clear focus on each business.
 To become world most big company of cement and concrete.

 Mission of the company:

 To deliver superior value to the customers, shareholders, employees and society at
large.KUMAR MANGALAM BIRLA SAYS
 “our goal is to become a US $65 billion group by 2015 from US $30 billion company
today.we expect company to contribute significally to this growth and earnings.”

 HISTORY:-
 2001 -Grasim acquires 10 per cent stake in L&T. Subsequently increases stake
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to 15.3 per cent by October 2002 -Durgapur grinding unit

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 2002 -Grasim increases its stake in L&T to 14.15 per cent -Arakkonam grinding
unit -The Grasim Board approves an open offer for purchase of up to 20 per cent
of the equity shares of Larsen & Toubro Ltd (L&T), in accordance with the
provisions and guidelines issued by the Securities & Exchange Board of India
(SEBI) Regulations, 1997.
 2003 The board of Larsen & Toubro Ltd (L&T) decides to demerge its cement
business into a separate cement company (CemCo). Grasim decides to acquire
an 8.5 per cent equity stake from L&T and then make an open offer for 30 per
cent of the equity of CemCo, to acquire management control of the company

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 2004 Completion of the implementation process to demerge the cement
business of L&T and completion of open offer by Grasim, with the latter
acquiring controlling stake in the newly formed company UltraTech 2006
-Narmada Cement Company Limited amalgamated with UltraTech pursuant to a
Scheme of Amalgamation being approved by the Board for Industrial & Financial
Reconstruction (BIFR) in terms of the provision of Sick Industrial Companies Act
(Special Provisions) - Formerly known as Ultratech Cemco Limited. The Group's
principal activities are to manufacture and market clinker and cement in India
2009
 -UltraTech to absorb Samruddhi to form India's biggest cement firm
 -Ultratech to be the lead sponsors of Rajasthan Royals
 -UltraTech to consider Grasim merger proposal

 PLANTS:-
 Andhra Pradesh Cement Works  Arakkonam Cement Works
 Awarpur Cement Works  Jharsuguda Cement Works
 Gujarat Cement Works  Magdalla Cement Works
 Hirmi Cement Works  Ratnagiri Cement Works
 Jafrabad Cement Works  West Bengal Cement Works
 Ginigera Cement Works

 ORGANISATIONAL STRUCTURE:-

 Board of Directors  Executives

 Kumar Mangalam Birla  R. K. Shah(CFO of mfg & projects)
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(Chairman)
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 Mrs. Rajashree Birla  S. N. Jajoo (Chief Marketing Officer)

 R. C. Bhargava  C. B. Tiwari (Chief People Officer)
 G. M. Dave  Mr. S. K. Chatterjee (Company
Secretary)
 N. J. Jhaveri
 S. B. Mathur
 V. T. Moorthy
 S. Rajgopal

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  O. P. Puranmalka
(Whole-time Director)
 D. D. Rathi

 :-
Profit and loss account as on 31 March 2009
        Rs. in crore
  Schedule   Previous year
Income
Gross sales 7,160.42 6,285.80
Less: excise duty 777.34 777.02
Net sales 6,383.08 5,508.78
Interest and dividend income 13 45.15 37.47
Other income 14 58.41 63.24
Increase / (decrease) in stocks 15 88.76 26.63
6,575.40 5,636.12
Expenditure
Raw materials consumed 16   684.96 536.77
Manufacturing expenses 17   2,420.17 1,828.87
Purchase of finished products   19.50 13.68
Payments to and provision for
18   217.67 167.59
employees
Selling, distribution,
administration and other 19   1,431.51 1,276.03
expenses
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Interest and finance charges 20   125.51 82.31

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Depreciation and obsolescence   323.00 237.23

    5,222.32 4,142.48
Less : Captive consumption of   (8.38) (13.37)
cement {net of excise duty Rs.
6.48 crore (Previous year Rs.
5.13 crore)}
    5,213.94 4,129.11
Profit before tax expenses   1,361.46 1,507.01
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Income tax expenses  
Provision for current tax   197.54 510.24
{including provision for wealth
tax Rs. 0.46 crore (Previous
year Rs. 0.18 crore) and interest
of Rs. Nil (Previous year Rs.
4.25 crore)} 
Deferred tax     180.58 (16.71)
Provision for fringe benefit tax     6.32 5.87
Profit after tax     977.02 1,007.61
Balance brought forward from
    1,598.12 775.16
previous year
Profit available for
  2,575.14 1,782.77
appropriation
Appropriations
Proposed dividend   62.24 62.24
Corporate dividend tax   10.58 10.58
Debenture redemption reserve     (36.08) (8.17)
General reserve   100.00 120.00
Balance carried to balance
  2,438.40 1,598.12
sheet
  2,575.14 1,782.77
Basic earnings per equity
share (in Rs.) {See Note B 20   78.48 80.94
(A)}
Diluted earnings per equity
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share (in Rs.) {See Note B 20   78.48 80.91

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(B)}
 

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 :-
Balance sheet as on 31 March 2009
  Rs. in crore
Schedul As on 31
e March 2008
Sources of funds
Shareholders' funds
Share capital 1A 124.49 124.49
Employees stock options outstanding 1B 1.68 0.77
Reserves and surplus 2 3,475.93 2,571.73
  3,602.10 2,696.99
Loan funds
Secured loans 3 1,175.80 982.66
Unsecured loans 4 965.83 757.84
  2,141.63 1,740.50
Deferred tax liabilities (net) 722.93 542.35
Total 6,466.66 4,979.84
Application of funds
Fixed assets
Gross block 5 7,401.02 4,972.60
Less: depreciation 2,765.33 2,472.14
Net block 4,635.69 2,500.46
Capital work-in-progress 677.28 2,283.15
  5,312.97 4,783.61
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Investments 6 1,034.80 170.90

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Current assets, loans and advances  

Inventories 7 691.97 609.76
Sundry debtors 8 186.18 216.61
Cash and bank balances 9 104.49 100.69
Loans and advances 10 378.97 376.83
  1,361.61 1,303.89
Less:      

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 Current liabilities and provisions        
Current liabilities 11 1,120.92 1,153.01
Provisions 12 121.80 125.55
1,242.72 1,278.56
Net current assets 118.79 25.33
     
Total 6,466.66 4,979.84

 ANALYSIS OF FINAL ACCOUNT:-

 Net Profit
Net profit for FY10 stood at Rs. 1,093 crores as Compared to Rs. 977 crores in FY09.

 Net Turnover
Net Turnover rose by 10%, attributable to higher domestic sales volume. Exports and Ready
Mix Concrete (RMC), each, contributed to around 7% of your Company’s net turnover.

 Other Income
Other income increased by 16% from Rs.106 crores in FY09 to Rs.123 crores in FY10 mainly on
account of increased earnings on surplus funds invested in various debt schemes of mutual funds
and exchange gain on account of appreciation of rupee to dollar.

 Employee costs
Employee costs rose by 15% from Rs. 218 crores in FY09 to Rs. 251 crores in FY10 on account
of increase in manpower for new projects and annual increment.

 Income Tax
Income tax increased from Rs. 384 crores in FY09 to Rs. 495 crores in FY10 linked to higher
taxable income. Effective tax rate is up from 28% in FY09 to 31% in FY10.
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 Depreciation
Depreciation mounted by 20% from Rs. 323 crores in FY09 to Rs. 388 crores in FY10 as a result
of the full year impact of capitalisation of new projects in FY09.

 GRAPH OF NET EARNING OF ULTRATECH CEMENT:-

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 NET EARNINGS
1200

1000

800
NET EARNINGS
600

400

200

0
2005-06 2006-07 2007-08 2008-09 2009-10

This is the chart of the company’s last 5 years net earnings which indicates that company’s net earnings
has increase constantly except 1 year 2008-09.The chart indicate that net earning of company has increase
last year.so we can say that company was on good growth. Also we can conclude from chart that
company’s growth in last 3 years as compare to that of starting’s 2 year is low but overall earnings of the
company has increase very well.

 COMPETITIORS:-
Kalyanpur cement, andhra cement, j k lakshmi cement ltd
Burnpur cement ltd, ambuja cements ltd, gujarat sidhee cement ltd., shree
cements ltd., binani cements ltd.., acc ltd., heidelberg cement india ltd., india
cements ltd. Mangalam cement ltd. Nirman cements ltd, birla corporation
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ltd,sanghi industries ltd, ambala cements ltd.

 SWOT ANALYSIS OF THE ULTRATECH CEMENT:-

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-STRENGTHS:
-Double digit growth rate
-Cement demand has grown in tandem with strong economic growth;
derived from:
-Growth in housing sector (over 30%) key demand driver;
-Infrastructure projects like ports, airports, power projects, dam & irrigation
projects
-National Highway Development Programme
-Bharat Nirman Yojana for rural infrastructure
-Rise in industrial projects
-Export potential also demand driver
-Capacity utilization over 90%

-WEAKNESS:
- Low value commodity
-Cement Industry is highly fragmented
-Industry is also highly regionalized
-Low – value commodity makes transportation over long distances un-
Economical

-OPPORTUNITIES:
-Demand–supply gap
-Substantially lower per capita cement consumption as compared to
-developing countries (1/3 rd of world average) Per capita cement
-consumption in India is 82 kgs against a global average of 255 kgs
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and Asian average of 200 kgs.

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-Additional capacity of 20 million tons per annum will be required to

match the demand
- Limited green field capacity addition in pipeline for next two years,
leading to favorable demand – supply scenario

-THREATS:
-Rising input costs

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 -Government intervention to adjust cement prices
-Possibility of over bunching of capacities in the long term as some of
the players have already announced new capacities
-Transportation cost is scaling high; bottleneck due to loading
Restrictions

 CONCLUSION
It has succinctly analyzed the present state of affairs at UltraTech cement
and thus identified its strengths and problem areas through a variety of
tools. While its raw material sourcing, financial and human resource pools
are sources of competitive advantage, UltraTech has to improve in terms of
fuel costs in order to beat ACC to the top position in the low margin
industry. This can also be achieved by leveraging futuristic trends like
branded retailing, exports and new products like ready concrete mix.
According to me ULTRATECH company is really performing well. And it
really has vast era to grow and become the world’s leading cement
manufacturer. This company really has potential to become rally good
company by its production capacity and its human resource.

“THE ULTRATECH CEMENT PVT LTD IS THE

NINTH-LARGEST CEMENT PRODUCER IN
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THE WORLD.”
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