Intellectual capital

We travelled less.
And reached far.

Intelligent confluence of technology and teamwork helped us travel less and reach far. The deep engagement of all stakeholders imbued with the

spirit – cascading from the leadership to employees down the line – has led to the successful implementation of TAC across Ambuja cement.

Our team figured out better ways of serving our markets, and keeping transportation safe and costs low. They had their eyes trained on every route, every kilometre, and every rupee being spent.

To leverage the power of analytics in logistics planning, we launched the Transport Analytics Center (TAC) in March 2020. The new dashboard was piloted at Maratha Cement Works (MCW) with agreed KPIs, allowing operational teams to be armed with real-time data on distribution safety, cost optimisation and efficiency improvement.

It led to a slew of actions. Verification of 3,500 routes, and corrections implemented in nearly 40% of them, for better cost Per Tonne Per Kilometre (PTPK). Based on PTPK data across locations, we identified outliers and renegotiated contracts for over 460 destinations. We were also able to implement safety and behavioural training for drivers based on data.

The result: Our safe kilometres shot up from 62% to 78% and savings of `1.75 crores on freight cost. Based on the success, TAC is now implemented across Ambuja Cement.

Real-time inputs through TAC enable distribution safety, cost optimisation and efficiency improvement

Relevant corrections made in logistic workflow

Decline in freight cost translate to `175 lakhs benefit

Over the years, we have enriched our experience and sharpened our expertise to gain market share and strengthen our brand recall. Our brands and in-house technologies and processes comprise our intellectual capital.

We leverage the rich experience of our parent company to identify the specific challenges faced by our customers and offer targeted solutions, helping gain their trust.

We also leverage our intellectual capital on introducing measures that enhance efficiencies of our processes and systems.

SPECIALISED PRODUCTS
Ambuja Kawach (PPC)
One
Less carbon footprint of Kawach compared to OPCs
(%)
33

SDGs impacted

2020 Highlights:
Leveraging knowhow and expertise,
increasing efficiency

KEY INPUTS

  • Identifying the latent needs of customers, developing and scaling of new solutions
  • Technical support from LafargeHolcim Group
  • Deep business knowhow; internal experts and thought leaders
  • Strong goodwill
  • ~30 Business-IT initiatives during 2020 implemented as compared to eight initiatives in 2019
  • ~`8 crores spent on strengthening information/cyber security

KEY OUTPUT

IMPROVEMENT

In operational efficiency

TECH-ENABLED

Business processes
Impact on other capitals
Human capital

Digital adoption driving human productivity

Financial capital

Investment towards innovation

Manufactured capital

Enhanced efficiency through innovative processes

Relationship capital

Innovative and value-added products

Social capital

Improved initiatives around community development activities

Natural capital

Technological improvements in operations, minimising waste, resource and emission

Stakeholders impacted

  • Stakeholders and investors
  • Dealers
  • Suppliers
  • Customers
  • Employees
  • Community and NGOs
  • Government and regulatory authorities
  • Construction professionals
  • Industry associations

Material issues addressed

  • Customer satisfaction
  • Sustainable construction
  • Economic performance

Key risks addressed

  • Maintaining market position
  • Resource availability and price
  • Cyber security

We fulfil the requirements of our clients while caring for the environment

We take proactive initiatives to help reduce our carbon footprint, while enhancing product quality and brand promise. Our products and services help our customers and construction professionals reduce their carbon footprint, manage maintenance requirements and cost of operations, making the projects greener and cleaner with lower environmental footprint.

Responsible and sustainable products

For us, the key to achieve sustainable construction lie in responsible product design and development, sustainable fuel mix, innovative product development and resource efficiency through efficient waste management. As part of our extended product responsibility, we have conducted a life cycle assessment and have developed the Environmental Product Declaration (EPDs) of all the PPC and Compocem products. This is also available on the international B2B portal ‘Environdec’. We are India’s first cement company to work out EPD after detailed life cycle assessment.

Besides identifying and reducing the environmental impact of our product process/technology, these also aid in addressing the health and safety aspects related to the use of construction products.

Our research and innovation team works continuously on introducing products which are not only innovative in nature but are also responsible and sustainable. Continuing this trend, we launched Kawach, a water-repellent cement, during 2020. This product has 33% less carbon footprint in comparison to OPC products.

This premium quality solution has been developed through our in-house manufacturing and product innovation efforts. Kawach is specially formulated to prevent water seepage in the most effective manner, resulting in improved durability and lifespan of house.

During the year under review, our Technical Services team provided the following:

  • Engineers provided technical guidance and supervision for slab casting to 14,478 customers through video conferencing during lockdown
  • Concrete mix proportions at 14,721 sites
  • Modular curing solutions at 2,391 sites
  • Rainwater harvesting at 268 sites
  • Preparing to apply for Eco Label for our products (except OPC)

The three initiatives (Concrete Mix proportions, Modular Curing, and Rainwater Harvesting) helped us in saving ~70 million litres of water, a robust step towards sustainable construction initiative.

During the year, we conducted various skill-building workshops engaging about 12,500 contractors, masons, and other construction professionals (architects and engineers) through class-room and virtual training sessions, workshops and webinars spanning over 39,000 man-hours for skill-building.

Our PPC product from Darlaghat plant (Himachal Pradesh) received the ‘ProSustain’ certification from the global certification body, DNV Business Assurance, reflecting our promotion of the adoption of responsible and cost-effective measures for incorporating sustainability into product design, development, production, and supply chain management.

New products

At Ambuja Cement, our continued focus on IHBs and customer needs has been the foundation for introducing innovative products and solutions. We work closely with our consumers in understanding their needs. We have identified that even newly-constructed residential buildings face issues like seepage, dampness and leakages at a very early age.

These are largely due to:

  • Persistent warm or high temperatures
  • A tropical wet and dry climate
  • Extreme weather conditions like heavy rains and very hot summer
  • Shallow water table
  • Improper and ineffective drainage systems causing waterlogging

We took this challenge and under the umbrella of Ambuja Certified Technology, launched new water-repellent cement product – Ambuja Kawach.

Since the launch, this product has gained strong traction. Driven by its premium positioning, it is driving the overall net selling price of Ambuja Cement.

Certification received for PPC product from Darlaghat plant
PROSUSTAIN
Sales of Kawach cement in 2020
(lakh mt)
1.80
Less carbon footprint of Kawach compared to OPCs
(%)
33

PPC

Plus

Compocem

Kawach

Buildcem

Powercem 53

Powercem 43

Railcem

Cool Wall

Blockol

PuraSand

The digital transformation journey is part of our strategic planning. Digitalisation has been initiated in the following areas—operational excellence, controls and compliance, and culture. The key focus of the year was on implementing digital tools in various parts of operations. We strongly feel that digitalisation will not just help in providing competitive advantage but would also help in creating a sustainable growth journey in the coming years.

We turned this pandemic into an opportunity and helped the organisation emerge as digital savvy.

As a part of operational excellence, we focused on three major areas— enhancing asset optimising, improving logistical efficiency and increasing sales and marketing effectiveness.

Enhancing asset optimisation
In line with the LafargeHolcim’s Plants of Tomorrow, we focused on implementing digital tools that helped in better asset optimisation and ensuring higher plant availability. We have implemented tools like Distributed Control System (DCS), Tool Location System (TLS) and Supervisory Control and Data Acquisition (SCADA) which are expected to enhance plant efficiency and increase uptime.

We have introduced Internet of Things (IoT) across the manufacturing value chain and are using artificial intelligence and machine learning under the project EDGE to facilitate rapid deployment of predictive models and seamless connectivity with plant data sources.

We have picked up multiple initiatives on predictive quality (cement fineness, cement quality) and predictive maintenance (VRM failure, refractory life). This will help us in optimising energy consumption per tonne of cement and enable us to save cost.

We are conceptualising Digital Eye to digitally monitor factory and plant operations (through drone and video analytics) to operate effectively and enhance safety.

Increasing logistics efficiency
Logistics account for a substantial part of the total operating cost in the cement manufacturing value chain. Hence, it requires effective fleet management to rationalise cost. We are leveraging various software packages to enhance efficiency.

Enhancing sales force efficiency
We have implemented sales force automation for our sales team. This helps us in getting better intelligence related to market dynamics and better pricing of our products.

We have also rolled out a contractor loyalty programme application where more than 48,000 contractors are enrolled with over 50% of them being active every month. This influencer engagement initiative helps us in strengthening the pull for our premium products.

Invested to digitally strengthen our sales and marketing team
(`lakhs)
33
Share of revenues derived from products used is sustainable building design and construction
(%)
~90