Ambuja Cement | Annual Report 2020-21

Strategic framework

A blueprint for
seamless growth

Leveraging our value-creation model, we work relentlessly to be India’s most competitive and sustainable cement manufacturer. The year 2020 saw major disruptions in our operating environment, but we braced ourselves and focused more on our strategic priorities to ensure seamless business operations.

VISION

To be the most sustainable and competitive company
in our industry

Strategic focus areas

Short-term priorities	How we achieve	Performance 2020
Health	Ensuring the safety of our people, partners and communities with the help of Business Resilience Team (BRT) through continuous engagements Providing them with the required support to remain productive and engaged during the difficult hours of the pandemic	Connected virtually with our employees, suppliers and vendors to ensure their well-being
Cost	Saving cost significantly through operational efficiency: - Optimisation of sourcing through effective negotiations - Managing supply chain effectively - Enhancing usage of alternative fuel resources Enhancing network efficiency	Total cost per tonne reduced by 3% over 2019
Cash	Focusing on receivables management to drive cash generation Initiatives to optimise inventory	Generated `2,606 crores as cash from operations, 5% growth over 2019

Mid- to longterm priorities	How we achieve	Linkages to material issues	Performance 2020
Increase market share	Increasing capacities to meet the growing market demand Communicating continuously with our key stakeholders to drive sales Strengthening market reach further	Economic performance, Marketing communication and reputation, Customer satisfaction, Sustainable constructions	Capacity expansion plan on track Added 600 channel partners Engaged with customers through innovative digital interventions, Above The Line (ATL) and Below The Line (BTL) activities
Increase share of value-added products and services	Introduce value-added products	Capacity utilisation and current demand, Marketing communication and reputation	Introduced one new value-added product in the blended cement category Share of revenue from the value-added products stood at 11% in 2020 (8% in 2019)
Enhance efficiency	Digital transformation Cost optimisation across production and logistics	Economic performance, Energy efficiency	Plant Net Availability index improved by 5% Freight and forwarding cost per tonne reduced by 2% Introduced cost efficiency drive to reduce operating cost per tonne of cement Initiated waste heat recovery system to optimise power and fuel cost
Sustainability leadership	Working towards meeting the Sustainable Development Ambition 2030 and aligning our targets with ‘Net Zero Pledge’ of LafargeHolcim	Greenhouse Gas (GHG) emissions and climate change, Air emissions, Waste management, Circular economy (AFR), Sourcing of water, Biodiversity	Improved performance on parameters like emissions reduction, water consumption, alternative fuels and raw material consumption, waste co-processing, biodiversity conservation, etc.