Environmental scanning Essay

International PlayersCement and Lafarge Birla Cement, the Indian cementumumum industry is broadly home-grown. Ultratech Cement, the countrys largest firm in terms of cement capacity, holds around 22% of the domestic marketplace, with ACC (50%-owned by Holcim) and Ambuja (50%-owned by Holcim) having 15% and 13% shargons respectively.M whatever of the remaining dozen top players are Indian and are (in order of diminishing market share) Jaiprakash Associates (10%), The India CementsLtd (7%), Shree Cements (6%), Century Textiles and Industries (5%), Madras Cements (5%), Lafarge (5%), Birla Cement (4%) and Binani Cement (4%). Between them the top 12 cement firms harbour around 70% of the domestic market. Around 100 smaller players farm and grind cement on a wide range of scales but are often confined to small areasEconomic surrounds wallopon Cement Industry Currently, the industry is on the boom, with a lot of government infrastructure and housing disgorges under construction. In spi te of seeing a fall during 2008-09, the export segment of the industry is expected to grow again on account of various infrastructure projects that are being taken up all over the world and numerous outstanding cement plants coming up in near future in the country. Over time much sophisticated and refined methodologies in connection with longer time series were employed to train productivity change. The contribution of total f flakeor productivity to fruitgrowth was of primary interest to explain the continuously low economic development. During that time, labor productivity as well as capital availability and affair affixd considerably, while the overall growth rate of the economy stagnated at low levels Concerned about the efficiency of resource use researchers started investigating productivity growth and input factor substitutions for aggregate manufacturing as well as various industriesAmbuja Cements ECONOMIC CONDITION Its financial statements i.e balance cruise and pro fit and loss, profits are increasing every twelvemonth and its share price is excessively high as compared to other cement industries and its assets are also emergenced. It means that its financial position is very strong as compared to others. From here we can psychoanalyze that its profits are increasing year by year and it means that they are providing more to GPI,with this our NPI will also be increase and overall position of country will be better. From here we can analyse that if industry position is strong then our countrys position will also be strong. It means it is beneficial for the state and country.Social Environments impacton industry Usually, the cement industry in India consists of both the organized sector and the unorganized sector. Organized sector comprises of the well-known cement manufacturing companies while the main players of the unorganized sector are the regional and local cement-producing units in various states across the state. Indian consumers prefe r buying branded cement worry ULTRATECH, JAYPEE CEMENT, LAFARGE CEMENT etc. It has been seen in the past, as well, that mini cement plants with lowbrand value and image are not able to croak against the cement giants. With a population of more than 100 billion people, it is expected that cement industry will create another 25 lakhs jobs in the future(a) 4-5 years.Ambuja Cements Social Impact This especial(a) union is totally different from. On this case they really back uped by doing lot of social work like they putting off various health centres for the poor people and provide Monetary help also to some reason. They also helped by providing education facilities to poor people like books etc. Not only this they are also providing good quality products that doesnt harm any kind of injuries to the people while they are using it. The Company strives to provide a safe and healthy work environment for its employees and to avoid adverse impact and injury to the environment and comm unities in which the company conducts its stock. The commitment is reflected in the number of awards the Company has received including National Award for outstanding pollution control. The awareness and training programme on health and safe related issues should be conducted regularly. All the employees, and directors shall comply with all applicable laws and regulations relating to health and safety so as to ensure healthy and safe work environment. exploitation or being under the influence of illegal drugs and alcohol on the job is absolutely prohibited.POLITICAL ENVIRONMENTAL F act uponORSAFFECTING THE INDUSTRY The price of cement is primarily controlled by the coal rates, power tariffs, railway tariffs, freight, royalty and cess on limestone. Interestingly, government controls all of these prices. Government is also one of the biggest consumers of the cement in the country. Govt. of India plans to increase its investment in infrastructure to US $ 1 trillion in the TwelfthFi ve Year Plan (2012-17) will lead to increase in the demand of cement. base of operations projects such as the dedicated freight corridors, upgraded new airports and ports are expected to enhance the scale ofeconomic activity, leading to a substantial increase in cement demand furthermore. Most state governments, in order to attract investments in their respective states, offer Fiscal incentives in the form of sales tax exemptions/deferrals. States like Haryana offer a freeze on power tariff for 5 years, while Gujarat offers exemption from electric duty. Strict law & order conditions and semipolitical will of the leader of any state enhance theconfidence of people living in the states as well as corporate to invest in that particular state. The total Government levies and taxes , which include Royalty on Limestone, Royalty on Coal,Electricity Duty, VAT/Sales Tax etc.,on cement constitute about 60% or more of the exfactoryprice of cement.Political Environment for Ambuja CementsIts political environmental is totally different from others because they never put any kind of political pressure on any other whether it is against or in favor for them. They always try to follow the proper rules and regulations that are made by the central government. But still they have to change their strategies as per change in the political environment. This policy applies solely to the Company and is not intended to discourage or prevent individual managing director or Employee from making political contributions or engaging in political activities on their own behalf. No personal political contribution is reimbursed by the Company. No personal political activities should interfere with duties to be discharged with the Company in line with this Code of Conduct.LEGAL ENVIRONMENT Ambuja cements is most recognized unit in India and they always they are following proper rules and regulations that are made by central government and also follows that are mentioned in the Companys ACT 1947 regarding Safety, Health and Social needs. They should Endeavour to keep abreast of the developments in laws and regulations and comply with the same. If any one gets to know of any non compliance of any of the laws in his or her colleagues area of operation in the company the same is brought to his/her immediate notice as well to the notice of his/her Head of the Department. All Directors and Employees of the Company conduct business affairs with honesty and integrity and in full compliance with all applicable laws, rules and regulations and shall not commit any illegal or unethical act or instruct others to do so, for any reason.Technological Factors affecting the CementIndustry From mining to production the entire process depends on applied science. The Government of India plans to study and possibly acquire new technologies from the cement industry of Japan. The government is discussing technology transfer in the field of energy conservation and environment protection to help improve efficiency of the Indian cement industry. At present 93% of the total capacity in the industry is based on modern and environment-friendly prohibitionist process technology. There is tremendous scope for waste heat recovery in cement plants and thereby reduction in emission level. One project for co-generation of power utilizing waste heat in an Indian cement plant is being implemented with Japanese assistance under Green Aid Plan. The generality of advanced technology has helped the industry immensely to conserve energy and fuel and to save materials substantially. Also, some cement plants have set up dedicated jetties for promoting lot transportation and export.Technological environment for AmbujaCements Ltd. It is one of the most important factor as compared toothers. In this particular we are going to discuss thatwhat type of technology they are using and how muchbeneficial for them as well as for the people who areusing this particular product. Ambuja cements in dustry is having good qualitymachines to switch their products and also they are usinglatest technology machines. And their technology is veryeffective that is implemented and they also implantedmodern technology like fund Control system etcINTERNATIONAL Factors affecting CementIndustry With the rapid growth rate of the Indian economy after the 1990s, the infrastructural developments within the country has been tremendous. The increase in the construction activities has led to the increase in the demand for updated quality building materials and other allied products. Cement being one of the major elements in the construction work, there is a growth in the cement industry in India. The consumption of cement has increased in India by nearly 7.5%. With the globalization of Indian cement industry many foreign cement manufacturers are engaging themselves in agreements and deals with their India counter parts to have a share of the growth. pear-shaped cement players in India will use the science route to enhance capacity and market share. It is clear that smaller plants will not survive in the long term. The top five players will hold 70-80 % of capacities and market in the next decade. There is an expectation that more global players would come into India as they would like to get a foothold in the market as the demand will propel in the emerging economies. Acquisition appears a good route primarily because a Greenfield cement plant takes 3-4 years to build and another 3-4 years to break even at an operating level of even 70-75 %. E.g.- The acquisition of the Larsen & Toubro cement (ULTRATECH CEMENT LIMITED) business by Grasim Industries Limited in 2003-04 is a case in point.