Ambuja Cement unique, all-encompassing cost leadership initiative – ‘ICAN@700 – has been launched with the singular aim to bridge the Rs 700 per ton cost gap with competitors. Achieving this goal would transform the company as the lowest cost cement producer in the industry, providing the best products and services.
ICAN@700 will create new endeavours in all areas of the company – from Manufacturing to Logistics.
Ambuja’s MD&CEO Neeraj Akhoury flagged off the program through workshops organised in four of the five integrated plants. The initiative’s tagline ‘By The Plant and For The Plant’ clearly set the tone that plants have to reinvent themselves, rethink models and realign to excel in cost leadership.
Delighted with the firm focus on Health, Price, Cost and Cash, Mr Akhoury urged that everybody should be inspired to now make ICAN@700 a way of life. “In the coming months, even with an uncertain market, we should continue to remain very strong on cost performance,” he said. “This unique program sets a strategic direction to mark new goals, build on core competencies, foster collaborative efforts and acquire ownership for the implementation of plans in order to lead operations at optimal cost,” added Mr Akhoury.
Meanwhile, ‘By The Plant and For The Plant’ incorporates its drive to ensure sustainable performance and operational excellence at optimal cost across all manufacturing units and pass on the greater value to customers. This will ultimately support LafargeHolcim’s Strategy 2022 – “Building for Growth”.
Expecting nothing less than an excellent performance from each plant, Chief Manufacturing Officer Vilas Deshmukh, said, “Based on ICAN principles which lets each one set his/ her targets, this initiative compels each plant to focus on ways and means to improve efficiency with optimisation of operating parameters, operational expenditure initiatives, and a mix of short and long term capital expenditure.”
Based on an industry report by the Confederation of Indian Industry (CII), the gap analysis for better performance was prepared, said Head of Performance Management, Procyon Mukherjee.
“This was further complemented by the cluster benchmarking that showed the gap of each plant on various parameters like electrical power consumption, thermal energy consumption, CPP station heat rate, mining productivity, raw material efficiency factors, maintenance KPIs, etc.,” explained Mr Mukherjee.
So far, four virtual workshops were conducted in the last two months for 200 participants in Ambujanagar, Bhatapara, Darlaghat and Maratha Cement Works. The end of each day was marked with plants presenting their initiatives to Mr Akhoury. Many more activities are underway as part of the program.