Madras Cement - Business Policy Report

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Transcript of Madras Cement - Business Policy Report


About the Company Madras Cements Ltd (MCL) is the flag ship company of Ramco Group. The company was incorporated in the year 1957 and is primarily engaged in manufacturing and marketing of cement. It is the sixth largest cement producer in the country and the second largest player in South India. MCL also produces ready mix concrete and dry mortar products. Additionally, the company operates wind energy farms. MCL operates through two reportable segments: cement and power generation. The company's cement segment primarily manufactures portland cement through the five production facilities spread over South India. These plants have a total capacity of 10 million tons per annum (MTPA): R R Nagar, Tamilnadu (1.2 MTPA), Jayanthipuram, Andra Pradesh (3.6 MTPA), Alathiyur, Tamilnadu(3.0 MTPA), Ariyalur, Tamilnadu(2.0 MTPA), Mathod, Karnataka (0.2 MTPA). MCL is a major player in the blended cement category and enjoys good recall for its Ramco Super Steel and Ramco Super Grade brand of cements. The cement segment also operates ready mix concrete plant, situated in Medavakkam, a suburb of Chennai and its capacity is 56 cubic meter per hour. Additionally, the segment operates a production facility for dry mix products near Sriperumpudur, Tamilnadu. The plant produces dry mortar, tile fixing compound and cement based putty. Additionally, MCL has earmarked on setting up a grinding mill at Kolaghat in Midnapore, West Bengal. MCL has installed coal based captive power plants totaling 72 MW at Jayanthipuram in Andhra Pradesh and Alathiyur in

Tamilnadu. The companys power generation segment generates power from Wind Farms comprising of 257 Wind Energy generators totaling 181.59 MW. The Wind Farm is situated at Muppandal, Poolavadi, Oothumalai and Mathodu.


TYPES OF STRATEGIES INTERNAL STRATEGY FORWARD INTEGRATION: created and developed an environment that ensures continual improvement in our business processes. In the same direction, this integration will help us in proactively meeting the expectations of customers, stakeholders and the requirements of the regulators while on the other hand will be useful in utilizing our resources more efficiently and effectively. they are committed to achieve customer satisfaction by ensuring excellence of performance in all our offerings and servicesMADRAS CEMENTS has

HORIZONTAL INTEGRATION: It involves addition of parallel new products to the existing product line. This may happen internally or externally, internally, a company may decide to enter a parallel product market in addition to the existing product line. Externally, a company combines with a competing firm.



Strategy: the plan devised to maintain and build competitive advantage over the competition.


Structure: the way the organization is structured and who reports to whom.


Systems: the daily activities and procedures that staff members engage in to get the job done.


Shared Values: called "superordinate goals" when the model was first developed, these are the core values of the

company that are evidenced in the corporate culture and the general work ethic.y

Style: the style of leadership adopted. Staff: the employees and their general capabilities. Skills: the actual skills and competencies of the employees working for the company.



The 7S model can be used in a wide variety of situations where an alignment perspective is useful, for example to help you:y y


Improve the performance of a company. Examine the likely effects of future changes within a company. Align departments and processes during a merger or acquisition.

1) Structure:- The MADRAS CEMENTS Board comprises executive, non-executive, and nominee directors. This group is responsible for determining the objectives and broad policies of the Company - consistent with the primary objective of enhancing long-term shareholder value. The Board meets once a month. Two other small groups of directors - comprising Shareholders'/Investors' Grievance Committee and Audit Committee of the Board of Directors - also meet once a month

on matters pertaining to the finance and share disciplines. During the last decade, there has been a streamlining of the senior management structure that is more responsive to the needs of the Company's prime business. A Managing Committee - comprising, in addition to the Managing Director and the two executive directors, the presidents representing multifarious disciplines: finance, production, marketing, research and consultancy, engineering and human resources - meets once a week. Besides these bodies, there are senior executives and other regional managers - based at the Company's corporate office, and at its marketing offices and manufacturing units - who contribute to the development and operation of the various functions. While these groups form the core management team that frames and guides corporate policy, MADRAS CEMENTS is proud of its manpower strength of about 9,000 people, who comprise experts in various disciplines assisted by a dedicated workforce of skilled persons. Quite a number of them have logged many years of service with the organization. They come from all parts of the country and belong to a variety of ethnic, cultural and religious backgrounds. Because of such a cosmopolitan makeup, MADRAS CEMENTS can rightly be said to embrace within its fold a family that forms a 'mini-India' Although the companies function under a Group umbrella, each of these companies is setup as an independent limited liability company comprising of their own Boards, Managing Directors

and Management Team responsible for all aspects of its operations. Human Resources, Legal, Finance and Administration departmental functions are centralized at Group level. 2) Staff:- MADRAS CEMENTS is made up of a carefully selected blend of the finest minds with diverse backgrounds, skills and experience. With operations in nine countries, we continually learn from our geographically diverse environments to bring about synergies of experience and creativity, as we generate value in business. . This is achieved through continuous training and development to increase knowledge, skills and overall effectiveness. 3) Shared Values: We succeed through satisfied customers we deliver quality and excellence in all we do We use technology to develop market leadership We value our employees We behave responsibly as corporate citizens 4) SKILLS Few of the trainees were illiterate, most of the participants were literate and few of them have been appeared the secondary level of education. Apart from the gainful employment skill building (vocational) training, the trainees residing at the companys center were provided basic literacy classes and life skills training. Basic literacy classes were conducted for illiterate. The classes were operated twice daily mostly in the morning and in the evening. Similarly, the life skill training was provided to all the trainees during their stay at the

center. The content of the life skill training . This life skill training aimed to help the trainees to tackle the adverse situation that is possible to happen during their future lives.

5) STRATEGY.y y y y y y

High on quality, customer value and customer care Branding Advertising Other promotional activities Packages Retention marketing

6) STYLE :- MADRAS CEMENTSs registered office was first located at RAJAPALAYAM,TAMILNADU. In 2009, a unique project, has transformed Cement House into an energy efficient environment-friendly building. Its attractive refurbished faade now houses an ultramodern office equipped with space-saving modular workstations, access control and intelligent lighting with motion and light sensors, waste management systems and water saving devices set amid greenery and a central atrium that further expands the sense of light and space Its attractive refurbished faade now houses an ultramodern office equipped with state-of-the-art intelligent lighting and green

7) SYSTEM: - Different branches of MADRAS CEMENTS follow different system but one thing is common among all is their concentration as they are thinking from the prospective of customer satisfaction.


Accordingly, the BCG matrix divides products/businesses into four categories: Stars: These high growth products in a fast growing market need more resource commitments. Cash Cows: These are low growth, high market share products, where minimal investments are envisaged. Indeed, cash cows provide the cash flows that support other businesses. Question Marks: These are low market share business units in high growth markets. Investment is needed to build them into stars.. Dogs: These are low growth and low market share businesses which generate just enough cash to maintain themselves. They are businesses from which the company is likely to withdraw in the near future. In The above matrix, MADRAS CEMENTS falls in the quadrant of CASH COW with respect to the market leader in south India.

CONCLUSION Keeping pace with changing times and an ever-growing need for specialized services, MADRAS CEMENTS has begun offering its marketing expertise and distributaries facilities to other producers in cement and related areas. However a precondition of all such agreement is quality control supervision to be carried out by the company expert located at the franchisees plant. Each of the regional Marketing offices has a customer services cell that is manned by qualified civil engineers. These, in addition to handling after-sa