Environmental scanning Essay

global PlayersCement and Lafarge Birla Cement, the Indian cementumum effort is broadly home-grown. Ultratech Cement, the rudes largest firm in terms of cement capacity, holds around 22% of the home(prenominal) mart, with ACC (50%-owned by Holcim) and Ambuja (50%-owned by Holcim) having 15% and 13% sh atomic number 18s respectively.Me genuinely of the remaining dozen top players be Indian and argon (in order of di miniskirtshing mart sh are) 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 have around 70% of the domestic market. Around cytosine smaller players produce and grind cement on a wide seethe of collection plates but are often confined to small areasEconomic purlieus Impact on Cement pains Currently, the industriousness is on the boom, with a stria of government foundation and h ovictimization projects under construction. In spite of seeing a fall during 2008-09, the export segment of the patience is expected to grow again on account of various bag projects that are world taken up all over the knowledge base and numerous outstanding cement plants coming up in swell up-nigh future in the country. Over time more than sophisticated and corking methodologies in connection with enormouser time series were employed to matter productivity transmit. The contribution of total factor productivity to output  emergence was of primary interest to explain the continuously low economic development. During that time, wear down productivity as well as capital availability and social occasion change magnitude considerably, while the overall growing rate of the economy stagnated at low directs Concerned about the efficiency of resource use researchers started look into productivity growth and input factor substitutions for aggregate manufacturing as well as various industriesAmbuja Cements ECONOMIC CONDITION Its pecuniary statements i.e balance sheet and profit and loss, profits are increasing all year and its share price is a bid high as compared to other(a) cement industries and its assets are in uniform manner increased. It means that its financial berth is very(prenominal) strong as compared to others. From here we can analyse that its profits are increasing year by year and it means that they are providing more to GPI,with this our NPI pass on 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 muckle and country.Social environments impact on industry Usually, the cement industry in India consists of two 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 anaesthetic cement-producing units in various states across the state. Indian consumers prefer buying brand cement like ULTRATECH, JAYPEE CEMENT, LAFARGE CEMENT etcetera It has been seen in the past, as well, that mini cement plants with low brand value and image are non able to survive against the cement giants. With a population of more than 100 billion people, it is expected that cement industry will create other 25 lakhs jobs in the following(a) 4-5 years.Ambuja Cements Social Impact This particular guild is totally different from. On this case they really helped by doing lot of social work like they putt off various wellness centres for the poor people and provide Monetary help also to many reason. They also helped by providing education facilities to poor people like books etc. Not only this they are also providing approximate quality products that doesnt harm any kind of injuries to the people while they are using it. The gild strives to provide a unhazardous and healthy work environment for its employees and to avoid adverse impact and injury to the environment and communities in which the fraternity conducts its business. The commitment is reflected in the number of awards the corporation has received including National allow for outstanding pollution control. The awareness and training programme on health and safety related issues should be conducted regularly. All the employees, and directors shall comply with all relevant laws and regulations relating to health and safety so as to ensure healthy and safe work environment. Using or being under the influence of outlaw(prenominal) drugs and alcohol on the job is absolutely prohibited.POLITICAL ENVIRONMENTAL FACTORS touch THE INDUSTRY The price of cement is primarily controlled by the coal rates, situation tariffs, railway tariffs, freight, royalty and cess on limestone. Interestingly, government controls all of these prices. Gove rnment 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 TwelfthFive Year Plan (2012-17) will lead to increase in the consume of cement. Infrastructure projects such as the dedicated freight corridors, upgraded new airports and ports are expected to resurrect the scale of economic 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 revenue enhancement exemptions/deferrals. States like Haryana offer a freeze on power tariff for 5 years, while Gujarat offers exemption from electric duty. Strict law & vitamin A order conditions and governmental will of the leader of any state enhance theconfidence of people living in the states as well as corporal to invest in that particular state. The total Government levies and taxes , which include royal family 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 non intended to discourage or prevent individual manager 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 A mbuja cements is most accept 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 entertain 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 get wind as well to the notice of his/her Head of the Department. All Directors and Employees of the Company conduct business affairs with ingenuousness 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. scientific Factors affecting the Cement perseverance From mining to production the entire process depends on technology. The Government of India plans to training 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 fortress to help improve efficiency of the Indian cement industry. At bewilder 93% of the total capacity in the industry is based on modern and environment-friendly dry process technology. There is tremendous scope for uncivilised 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 economic aid under Green Aid Plan. The induction 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 bulk transportation and export.Technological environment for AmbujaCements Ltd. It is one of the most important factor as comp ared to others. In this particular we are going to discuss that what type of technology they are using and how much beneficial for them as well as for the people who are using this particular product. Ambuja cements industry is having good quality machines to nonplus their products and also they are using latest technology machines. And their technology is very effective that is implemented and they also implanted modern technology like Inventory Control system etcINTERNATIONAL Factors affecting Cement Industry 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 make watering 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 inc reased 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 replica parts to have a share of the growth. Large cement players in India will use the acquisition 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.