We will be able to cross 74 MTPA capacity this financial year
UltraTech Cement Limited is one of the largest cement companies in India and among the leading producers of cement globally. It is also the country´s largest manufacturer of white cement and ready mix concrete (RMC). UltraTech Building Solutions (UBS) is a retail format that caters to end consumers, providing a variety of primary construction materials under one roof. OP Puranmalka, Managing Director, UltraTech Cement Limited, is in conversation with the ICR team.
How would you describe your company and its spread ?
UltraTech Cement is a young, modern organisation that powers engineers, architects and home builders to create structures that are not only strong and durable, but also aesthetic. Structures that reflect the style and pride of the owner and creator. From homes to highways, from airports to metro rails, UltraTech Cement has the ability and will to transform every dream and aspiration into a beautiful reality. We are proud of the part we play in nation building and in creating lasting relationships with our stakeholders.
We operate in five countries with 12 integrated manufacturing units, one clinkerisation plant, 16 grinding units and six bulk terminals for our grey cement business. We are the largest manufacturers of grey cement, RMC and white cement in India, and we serve markets pan India.
In terms of growth and product launches, how has the company performed in last five years?
UltraTech Cement has completed over a decade of operations. Our CAGR numbers for the period 2005-2015: Turnover of 24 per cent, EBIDTA of 29 per cent, market capitalisation of 33 per cent. We have scaled up our grey cement capacity from 17 MTPA to 63 MTPA. By the end of FY16, we would be at 74 MTPA. Our power generation has gone up from 44 MW to 754 MW. In addition to various grades of cement, we have over a dozen speciality concretes, white cement-based WallCare putty and a range of primary construction products that retail at our UltraTech Building Solutions (UBS) stores that benefit the rural and semi-urban markets.
What are your marketing plans? What is your mantra for keeping your clients coming back to you?
At UltraTech, the focus on customers is sharp and unwavering. Every UltraTech product is backed by service and strong technical support that is customised to meet the needs of our customers. We have a 750-people strong technical services and support team that understands specific needs of engineers, architects and contractors and guides them through the construction process. Our key account managers provide a one window solution to our customers pan India. Through UBS, we provide construction, costing and maintenance advice to our retail buyers.
UltraTech is known as an employee-friendly company. How is this achieved?
Just as we are focussed on our customers, we are equally focussed on our employees. We believe that the drive, effort and initiative our 14,000 + colleagues are the bedrock of our success and value-based approach. Right from recruitment to nurturing techno-managers, cascading knowledge and creating domain experts, we are committed to building a great place to work for our employees.
Give us some idea on your future plans?
During the current financial year, i.e., FY16, we will be able to cross 74 MTPA capacity as our acquisition of two units in Madhya Pradesh is completed. With the Government´s focus on infrastructure development, housing, smart cities and good roads, we are confident that we are well positioned to meet the expected demand and participate in the country´s growth.
As a corporate citizen, what has been your contribution towards the social sector?
As a responsible and caring corporate citizen, we share our success and contribute to improve the lives of the people we work with. Our focus is on all round development of the communities around our plants. We work in 407 villages across 13 states and reach out to 1.3 million people through our work in healthcare, education, sustainable livelihood, infrastructure and social reforms. Of these 407 villages, we have selected 54 to be transformed into model villages by 2017. We follow a partnership approach and work with like minded organisations such as district rural development authorities, local hospitals and panchayati raj institutions. Says Rajashree Birla, Chairperson of the Aditya Birla Centre for Community Initiatives and Rural Development: "With all of us fully committed to inclusive growth, transparency and good governance, we can hope for a holistic transformation of our country. At the end of the day, we look forward to a time when the word poverty will be struck off the lexicon and no mention of it will be made in relation to India."
What are your plans on technological fronts to maintain the leadership position?
As a leader in the Indian cement industry, we continually strive to play a key role in finding effective and responsible ways to preserve the environment. Our focus areas include alternative fuels, waste heat recovery systems, CO2 emission reduction, waste management, water re-cycling and bio-diversity management.
In sum, UltraTech Cement is a consistent performer in the Indian cement industry, delivering not only good financial performance, but also building capacities, augmenting people related processes, improving safety and caring for the environment.