Capital-wise performance

Relationship CAPITAL

Our relationship capital relates to the intangible value inherent in our ties and shared commitments with our business partners, consumers and other external stakeholders. We ensure quality products reach our customers through our deep distribution network, catering to their diverse needs and also provide them value-added services that help them build sustainable, resilient structures.

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.

“Why can’t we develop a one-stop platform for contractors’ business needs?” asked a team member overseeing our engagement with them. To turn the idea into a reality, the technology team got to work. And an app was born, Ambuja Darpan, which mirrored the contractor’s needs as it provided roundthe-clock access to tools for running their business efficiently and showcasing their capabilities. The multilingual app was equipped with a live compass, Vaastu tips, event calendar, product guide and an Ambuja dealer locator, among other tools.

The popularity of this app has grown multifold. And the Ambuja Abhimaan programme that pro-actively engages over 60,000 key contractors has now empowered them with the Darpan app.

Understanding the needs of this critical stakeholder, empowering and enabling them to chart their own success stories, is a reflection of the quintessentia spirit that is embodied within the fabric of the organisation.

STAKEHOLDERS IMPACTED

Suppliers

Government and regulatory authorities

Dealers

Construction professionals

MATERIAL ISSUES ADDRESSED

  • Procurement practices
  • Compliance with regulatory requirements
  • Sustainable supply chain
  • Green supply chain (logistics and transport)
  • Marketing communication and reputation

KEY RISKS ADDRESSED

  • Maintaining market position
  • Competition

SDGS IMPACTED

Value creation at a glance

 

Developments and key initiatives

KPIs

CUSTOMERS

We continued to drive customer value through innovation, responsible products, engagement initiatives and good customer service

` 89 . 25 crore

Advertisement and Promotion (A&P) spend in CY2021

DISTRIBUTORS

Strengthen distributor connect with various initiatives

1,850

Dealers added in 2021

4,200

New retailers onboarded in CY2021

SUPPLIERS

Focus on local suppliers

92 %

local procurement

` 11,975 crore

paid out to 8,312 suppliers in CY2021

OVERVIEW

An enduring relationship with our business partners, suppliers and contractors and channel partners are essential to retain our competitive edge in the market, extend our reach across geographies into new markets and capitalise on emerging opportunities in the industry. Equitable contracts, collaboration and information sharing are necessary for maintaining the agility of our supply chain. As a customercentric company, it is equally important for us to meet our customers’ present and emerging needs, and growing expectations related to the sustainability of our processes, products and practices. Our brand reputation as well as business sustainability hinge on the trust and loyalty we inspire among these key stakeholders.

To execute market specific strategies, we focus on the following:

  • Creating synergies between all our resources, external partners and consumers
  • Driving change in purview of our stakeholders’ needs and wants
  • Analysing the potential threats and opportunities for 360-degree value creation
  • Ensuring continuous skill-building of all our business partners and contractors for their long-term business growth
CUSTOMER CAPITAL

It is our goal to become the best retail construction brand in India, but we also understand that given India’s diversity, multifarious strategies are required to serve our wide customer base. We ensure that all our customers get equal and complete focus. Hence, we have different dedicated teams for both our segments—Trade and B2B. We cater to Individual House Builders (IHBs), institutional projects, commercial projects, mass housing, infrastructure projects (roads, dams, bridges etc.).

Customer segment (%)
  • Retail
  • Institutional

We relentlessly work towards creating a product portfolio that provides superior strength and quality and provides hassle-free construction for our customers across the country with diverse climatic conditions. Our base product is a premium offering with superior strength. Additionally, we have a special products category that provide additional benefits to our consumers. For example, strong and cohesive concrete (Ambuja Plus, Compocem in East) or and water repellent (Ambuja Kawach) properties.

By ensuring lower lead time, additional technical services support and product demonstration, we have been able to improve acceptance for our special products. Our on-ground branding and digital marketing efforts have also improved the pull factor for these products. During 2021, we reported substantial increase in the special products volume against that in 2020 by both push and pull levers.

Our core value proposition for our customers is our product and services offerings for every stage of the construction process. In line with this, we have introduced the ‘Ambuja Certified Technology’ campaign to present Ambuja Cement as the go-to solution for all construction needs by promoting the use of right products, right services and right techniques during construction.

AMBUJA CERTIFIED TECHNOLOGY HOUSE

We will continue to strengthen the products and solutions portfolio under the umbrella of Ambuja Certified Technology. We aspire to establish ourselves as the most sustainable construction brand in India and will be looking to add more green products to our portfolio. We would also like to penetrate our rural and semi-urban segments further and capture all the white spaces in existing markets using our technical services, ATL and BTL activities along with digital marketing. We are planning to launch one sustainable product under the ECOPlanet category and create more value for our customers.

CUSTOMER SUPPORT AND SATISFACTION

Our unmatched product portfolio, superior customer servicing philosophy and an always-available culture help ensure highest level of customer satisfaction. We systematically measure customer satisfaction through our engrained channels and continuously improve our services to help them build structures that are more resilient, resource-efficient and cost-effective.

We measure brand equity by conducting brand health studies on individual customers. The satisfaction level of dealers is evaluated using the Net Promoter Score (NPS) methodology. We also have an internal system of getting feedback from the market through virtual means.

Product quality complaints raised through toll-free number (1800 22 3010) printed on all cement bags are managed through a customer complaint handling system.

Flagship projects using Ambuja cement products

  • Border Roads organisation (BRO)- Rohtang Tunne
  • Border Roads organisation (BRO)- Leh Manali highway
  • Rishikesh Karan Prayag tunnel project (RVNL- Rail Vikas Nigam Ltd)-Megha Engineering, Navyuga, Max Infra
  • Pandoh-Takoli road project – HP
  • Srinagar Airport- E5 infrastructure
  • Zojila Tunnel J&K
  • Holi Bajoli dam project - HP
  • Jammu Ring road project
  • Pakul dam project - Jammu
  • Silkayara Barkot tunnel - Uttarakhand ( 4 Dham project)
  • Ramban Banihal Qazigund road tunnel project, Jammu
  • AIIMS Bilaspur, AIIMS BHATINDA, AIIMS Awantipura, AIIMS Jammu
  • IIT Ropar, IIT Jammu
  • IIM Jammu
  • Thermal Power plant Khujra
  • War Memorial Ambala
  • Dhaulasidh Hydro project
  • HPCL-L&T jetty project (Chara Gujarat)
  • Bagodara Vasad highway project
  • Daman Sea wall and sea link
  • Ahmedabad Metro
  • Bhayla to Bagodra highway
  • Mumbai Metro
  • Nagpur Metro
  • Mumbai Trans harbour link
  • Mumbai Coastal road project
  • Samruddhi Mahamarg- Mumbai Nagpur expressway
  • IIT Patna
  • Nalanda University
  • Medical College, Ambikapur, Chattisgarh
  • Joka Esplanade Metro Project
  • Kolkata Police Training Academy, Shibpur
  • University of Health Science, Salt Lake
  • IIT Kharagpur
  • Minerva Lokhandwala -Mahalakshami Race course -Mumbai (under construction)
CUSTOMER ENGAGEMENT

It has been our endeavour to delight all our customers by offering the highest quality of services and products. We have been strengthening our relationships with architects, engineers, contractors and masons to enhance the experience of our end consumers.

The past two years needed an extraordinary approach to stay engaged with our customers as the pandemic made physical interactions difficult. We organised several mental and physical well-being sessions for our external stakeholders, employees, and their families to tide over these tough times. We also organised several virtual bonding activities with our channel partners and families. We have come up with focused mobile and web applications for each of our major external stakeholders, and we keep adding new features to these apps periodically based on the feedback from them. We also remain connected with customers through digital platforms by conducting virtual meets. For influencers, we have the Ambuja Abhimaan platform, with a holistic approach towards strengthening relationships.

Other customer engagement initiatives:
  • To revitalise our brand and strengthen its positioning, we developed a mother-brand TVC ‘Deewar 2’ starring Boman Irani and Vinay Pathak, which was aired in September 2021 on major national and regional channels. Post campaign research indicated high recall, engagement and enjoyability. The digital campaign was a huge success and garnered over 2 crore+ views. It was rated among the top 10 most-seen ads
  • To boost our sales efforts and build saliency, we launched our 10-second ‘Giant’ TV commercial in December 2021. The TVC went on air on leading national and regional news channels in Rajasthan, Gujarat, Maharashtra and Punjab
  • In order to leverage the power of cricket to develop a deeper connect with people, we partnered with Board of Control for Cricket in India (BCCI) as their official sponsor. We made heavy on-ground presence through branding on perimeter boards, ropes, sight screens, and backdrops among others. Along with BCCI and Geocycle, we embarked on collecting and recycling waste generated in the cricket stadiums and used it as alternative fuel in our plants
  • We also engaged with stakeholders through festival/event specific films. During 2021, we developed four occasion-based films – for the New Year, Diwali, Independence Day and Republic Day. Each film generated 50 lakh+ views on digital platforms

33,665

New contractors enrolled on Abhimaan in 2021

43,000 +

Sites provided with value added services

53,000 +

Customers connected through digital platforms during the lockdown

DEEPENING OUR MARKET REACH

To improve our reach, we appoint dealers and retail stockists who help us deepen our market penetration. We nurture our channel partners, providing them with quality products, strong influencers’ network, varied on and off ground branding activities, onsite value-added services and a talented sales team. Our supportive system, ethical business practices and continuous efforts to deepen our relationships with our external partners have helped us stand out amongst competition.

We organise several virtual and physical meetings and events throughout the year for our channel partners and their families. In addition, our frontline team works closely with them to help them grow their business and support them in delivering the best-in-class services to end consumers.

300

New channel partners added in 2021

SUPPLIER ENGAGEMENT

We engage with our suppliers through issues concerning health and safety, contractor safety management, sustainable procurement, anti-bribery and anti-corruption directives, thirdparty due diligence and automation in SAP-Ariba. We encourage our business partners to imbibe our corporate values and demonstrate good corporate citizenship and follow sustainable practices. The Sustainable Procurement Initiative (SPI) includes a thorough assessment of our suppliers, who are mapped as per SPI guidelines on high, medium or low risk parameters.

In 2021, we engaged with 8,312 Tier-I suppliers and prioritised potential high-risk suppliers based on three categories − Anti-Bribery and Corruption (ABC), sustainable development and contractor health and safety. Suppliers who make up 80% of the allocated total spend are classified as critical. 1,095 suppliers were identified as ‘critical’ among the total Tier-I suppliers. The top three categories of critical suppliers include production service providers (including manpower contractors), facilities service providers and logistics service providers.

We introduce our suppliers to our Code of Business Conduct for Suppliers commonly known as Supplier Code of Conduct (SCC), and obtain their consent to follow the Code, which sums up our expectation from them in all procurement dealings. The SCC covers standards specified in Social Accountability Standard SA 8000 and EMS ISO 14001. We intend to undertake capacity building for our supplies so that they have their own sustainable procurement policy.

Local suppliers (Nos.)