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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 to

15.3 per cent by October 2002 -Durgapur grinding unit 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

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

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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

(Chairman) R. K. Shah(CFO of mfg &

projects)

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 O. P. Puranmalka

(Whole-time Director) D. D. Rathi

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:-Profit and loss account as on 31 March 2009

        Rs. in crore

 Schedu

le   Previous year

IncomeGross sales 7,160.

426,285.80

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 63.24Increase / (decrease) in stocks

15 88.76 26.63

6,575.40

5,636.12

ExpenditureRaw materials consumed

16  684.9

6536.77

Manufacturing expenses17  

2,420.17

1,828.87

Purchase of finished products   19.50 13.68

Payments to and provision for employees

18  217.6

7167.59

Selling, distribution, administration and other expenses

19  1,431.

511,276.03

Interest and finance charges

20  125.5

182.31

Depreciation and   323.0 237.23

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obsolescence 0 

 5,222.

324,142.48

Less : Captive consumption of cement {net of excise duty Rs. 6.48 crore (Previous year Rs. 5.13 crore)}

  (8.38) (13.37)

  

5,213.94

4,129.11

Profit before tax expenses  

1,361.46

1,507.01

Income tax expenses  Provision for current tax {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)} 

  197.54

510.24

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 previous year    

1,598.12

775.16

Profit available for appropriation  

2,575.14

1,782.77

AppropriationsProposed dividend   62.24 62.24Corporate dividend tax   10.58 10.58Debenture redemption reserve    

(36.08)

(8.17)

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General reserve 

100.00

120.00

Balance carried to balance sheet  

2,438.40

1,598.12

 2,575.

141,782.77

Basic earnings per equity share (in Rs.) {See Note B 20 (A)}

  78.48 80.94

Diluted earnings per equity share (in Rs.) {See Note B 20 (B)}

  78.48 80.91

 

:-Balance sheet as on 31 March 2009

  Rs. in croreSched

uleAs on 31

March 2008Sources of funds

Shareholders' fundsShare capital 1A 124.4

9124.49

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

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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 fundsFixed assetsGross block 5 7,401.

024,972.60

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

Investments 6 1,034.80

170.90

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

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  1,361.61

1,303.89

Less:      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.

664,979.84

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.

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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.

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:-

2005-06 2006-07 2007-08 2008-09 2009-100

200

400

600

800

1000

1200

NET EARNINGS

NET EARNINGS

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.

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COMPETITIORS:- Kalyanpur cement, andhra cement, j k lakshmi cement ltdBurnpur 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 ltd,sanghi industries ltd, ambala cements ltd.

SWOT ANALYSIS OF THE ULTRATECH CEMENT:-

-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-

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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 and Asian average of 200 kgs. -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-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

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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 THE WORLD.”

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