Strength and
Sustainability for
a green future.

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Strength and sustainability
for a green future

Greening growth is the only way to build a sustainable future. Guided by the Belief and aligned with the group strategy of ‘accelerating green growth’, We are changing the story of finding sustainable solutions. On one hand, we Are expanding our capacities to address the growing needs of a fast growing Economy. On the other, we are further improving our operational efficiency While continuously lowering our carbon footprint.

Progress report 2021

PERFORMANCE HIGHLIGHTS

Financial

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Net sales (` crores)

13,794

+23%

Operating EBITDA (` crores)

3,207

+21%

Profit after tax (` crores)*

2,081

+16%

EBITDA margin (%)

23.3

-40 bps

Return on average capital employed (%)

13.10

+160 bps

Dividend per share (`)

6.30

Operational

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Cement production (MT)

25.89

+16%

Capacity utilisation (%)

86

Average realisation per tonne (`)

5,105

+3.5%

Share of sustainable products in total sales (%)

89.5

New capacity added(MTPA)

1.8

People, health and safety

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New employees added (%)

342*

*Of which 9% are women

Safe onsite man-hours (million))

101.8

Reduction in LTIFR (/million hours)

0.21

-24%

Employee training man-hours

8

Reduction in total onsite recordable injury(%)

21

Sustainability

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Water positivity

8X

Clinker factor (%))

63.00

+150 BPS

Plastic negative

3.5X

Waste consumption (MT)

8.8

People impacted through community intervention programmes(million))

2.80

Specific net CO2 emission(kg CO2 per tonne of cementitious materials)

528.8

Our sustainability strategy

Blueprint for green
growth

At Ambuja Cement, we have always embedded social and environmental considerations into our operations and decision-making, which has strengthened our competitive edge. Our distinctive approach to sustainability enables us to measure the impact we are creating on society and the environment and calibrate our business operations and actions accordingly. We scrupulously map our progress along set targets and report on our nonfinancial impact.

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sustainability highlights

50%

Clean electricity in cement production (%)

154

Reduction in clinker factor (bps)

8.8

Waste consumption (MT)

2.8

People impacted through community intervention programmes (million)

3.5

Plastic negative (x)

528.8

Specific net CO2 emission (kg CO2 per tonne of cementitious materials)
Chairman’s Message

Narotam Sekhsaria Chairman

Towards a sustainable
future for all

Dear shareholders

At the onset, I would like to express my heartfelt gratitude for our frontline workers, whose untiring efforts at ensuring the safety and well-being of our employees and communities have allowed us to hold our heads high, and continue our operations without disruptions.

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Managing Director’s Message

Neeraj AkhouryManaging Director and CEO

Demonstrating the
strength of our resolve

Dear shareholders

The year 2021 was a study in contrast for the Indian economy and the cement industry. While the government’s continued policy push towards infrastructure and affordable housing bode well for a strong rebound in demand, the onset of a more severe second wave in the second quarter.

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stories

Give a man orders and he will do the task
reasonably well. But let him set his own
targets, give him freedom and authority, and
his task becomes a personal mission    

New connections discovered. What old routes overlooked.

The second wave of the COVID-19 pandemic posed severe hurdles in the transportation of manufactured products to distributors. Our ability to serve our customers’ needs was being compromised.

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We paused to prepare better. And then surged ahead to achieve.

The cement plant of the future will embrace digitisation and sustainability trends to earn a competitive advantage and build resilience.

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We built a shield that let’s only smiles seep through

A house of one’s own is a long-cherished dream for millions of Indians. However, leaking walls and seepage in ceilings could turn this dream into a nightmare.

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Concrete steps to reduce carbon footprint

Climate action is no longer an option but a time-bound imperative to limit global warming to well below 2°C. In line with the Holcim Group’s Net Zero pledge, we are integrating sustainability into the organisational culture, prompting our people to come up with concrete measures to reduce carbon emissions and lower energy intensity; and increase the share of clean and renewable energy.

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When a stream of positivity flows, every drop matters

Water has been the key focus area for us ever since inception. Our efforts have been acknowledged with the latest recognition we received for leadership in water security in CDP 2021 with the best-ever ‘A’ score. Globally, Ambuja is the only cement company to have achieved this feat.

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We built a Darpan (mirror) that reflects capabilities

Contractors are a critical bridge in our relationship with customers and other stakeholders, especially Individual House Builders (IHBs). Their onsite presence is crucial as they are responsible for project execution and managing men (labour), materials and method (construction practices). However, most contractors do not have formal training for the job and even lack office space to conduct their business in an organised manner.

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We need to keep some silos intact, with teamwork

Cleaning a 21,800 MT capacity silo in two weeks could seem like a Herculean task for most; however, not to our team from Bhatapara. Cleaning silos is integral to the efficient management of a plant’s inventory and supply chain and imperative to be accomplished despite any external challenges or roadblocks.

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Our Capitals

FINANCIAL CAPITAL

Effective management of our manufacturing assets contribute to our operational efficiency, profitability and continued growth.

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Manufactured capital

Effective management of our manufacturing assets contribute to our operational efficiency, profitability and continued growth.

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Intellectual capital

Our intellectual capital consists of the wealth of ideas, technical expertise, process knowledge, consistent capability of innovation and other intangibles such..

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Natural capital

We understand that we can play a significant role in promoting sustainable development and limiting climate change. We have stringent controls in place...

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Social Capital

At Ambuja Cement, the community is considered the primary stakeholder of the Company. Our holistic community development initiatives...

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Relationship capital

Our relationship capital relates to the intangible value inherent in our ties and shared commitments with our business partners, consumers and...

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Human Capital

The Ambuja Cement team of 10,463 employees (including third-party contractual employees) is our most valuable asset, which propels the Company

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Our strategic priorities and progress

Shaping our
future course

Aligned with the growth strategy of our parent company and rooted in our robust vision, our strategy has been designed to capitalise on emerging opportunities, and ensure that we emerge more profitable, responsible and beneficial for our stakeholders.

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AWARDS AND ACCOLADES

RECOGNISED ACROSS
PLATFORMS

The awards and recognition received during the year are testament to our efforts to create a difference in the industry.

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GOVERNANCE

Upholding a culture
of accountability

We are guided by a strong value system and take pride in being a responsible corporate body that has consistently built upon its solid foundations for oversight.

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