Gujarat Ambuja Cements Limited

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Gujarat Ambuja Cements Limited
Wednesday, November 1, 2006
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Contents

• Industry Highlights
• Demand Drivers
• Gujarat Ambuja Cements Limited An Overview
• Key Financials - Quarterly Results YTD
• Consolidated Results (YTD)
• Sales Volume
• Sales Realisation
• Direct cost of Production
• Peers Quarterly Performance
• Future Growth Plans
• Status on the merger of ACEL

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Industry Highlights
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Cement Industry At a Glance
YOY Growth
Cement Capacity 164.7 Mil.T. (As of Sep-06)
2.8
Clinker Production 118.4 Mil.T. (2006 Est.)
3.0
Cement Production 151.4 Mil.T. (2006 Est.)
10.8
Cement Demand (Domestic) 144.3 Mil.T. (2006
Est.)
10.1
2
5
Rising Capacity Utilisation
180
100
92.82
87.64
80.92
90
160
85.07
80.63
79.24
85.10
80
83.60
140
77.00
79.56
78.19
70
120
60
100
mn. tonnes
50
80
40
60
30
40
20
20
10
0
0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Capacity installed
Cement Production
Capacity utilisation ()
3
6
Industry Highlights (Jan Sept 2006)
12
12
3
2005
2006
113.55
113.24
88.79
101.39
101.20
85.44
Clinker Production
Cement Production
Cement Despatches

Growth rate
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Demand Drivers
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Demand Drivers

• Development of New Urban Cities
• Hedge against Inflation - Property
• Increasing Housing Mortgage Penetration
• Retail Sector Development Malls Multiplexes
• Growth in IT / IT Enabled Services
• Emphasis on Infrastructure

Increased Construction will lead to higher
cement demand
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The way forward

• Demand expected to grow by over 10, on a back of
  strong GDP growth
• Fresh Supply is limited in the near future
• Demand to outstrip supply.
• Consolidation drive has changed the face of
  industry.

Result Prices to remain Firm
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Gujarat Ambuja Cements Limited An Overview
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Our Operations (Post Merger with ACEL)
Substantial Presence in West
North India
HP
Punjab
Cement Plant Grinding Station Terminal Port
Rajasthan
Gujarat
Chattisgarh
WB
Mn. Tonnes
Maharashtra
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Gujarat Ambuja Cements Limited

• Capacity built up from 0.7 mn. Tonnes in 1986 to
  16.0 mn. Tonnes today (including acquisitions).
• Sea transportation of bulk cement from Gujarat to
  3 terminal ports at Surat, Mumbai Sri
  Lanka.
• A captive port at Muldwarka (Gujarat) for inward
  / outward movement of goods.

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Our Strategy

• Captive Infrastructure Ports Power Plants
• Presence in the growing markets of North West
• Retail Focus Premium pricing
• Largest Exporter of cement
• 35 Cement transport by sea - Cheapest Mode
• One of the Lowest Cost Cement Producer

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Own Infrastructure

• 7 Owned Cement Ships for transporting Cement by
  Sea.
• Port at Muldwarka (Gujarat) to handle
  import/export of material.
• 3 Cement receiving terminals.
• Over 250 MW of Captive Power Plants at various
  cement plants to give reliable and cheap power.

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Strong Brand

• India - A bagged market
• Individual home builder - key driver of demand

• Our focus
• Best quality cement
• Good packaging
• Logistic management - strong distribution network
  
• Customer service

• Ambuja Cement - A preferred brand
• - Fetching higher
  realisation

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Key Financials(Standalone)
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Key Financials Latest Quarter(July Sept 2006)
Rs. Crores
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GACL standalone (YTD)
Rs. Crores
16
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Consolidated Results(YTD)
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Consolidated Results (YTD)
Rs. Crores
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Sales Volume
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Sales Volume(Including ACEL)
Mn. Tonnes
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Sales Realisation
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Sales Realisation
Rs. per 50 Kg Bag
Jun-06
Mar-06
Dec-05
Sep-05
Sep-06
Mumbai
217
214
193
172
171
193
188
167
155
152
Ahmedabad
201
202
178
156
156
Delhi
178
174
162
144
138
Jaipur
194
192
178
171
172
Kolkatta
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Direct cost of Production
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Direct cost of Production
848
804
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Peers Quarterly Performance(July - Sept 2006)
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Peers Quarterly Performance (July Sept 2006)
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Future Growth Plans
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Future Growth Plans
Total Capital Outlay of Rs. 1600 Crores
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Status on the Merger of ACEL
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Status on the Merger of ACEL

• Scheme of Arrangement filed with High Courts
• Shareholders Creditors meeting completed.
• Process expected to be completed by end of
  November 2006

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Our Shareholders ( Post Merger )
Includes indirect holding of approx. 10
through Ambuja Cement India Private Limited
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Synopsis

• Cement
• A Growth Story
• A Proxy on Indian Economy
• A business with least challenges
• Industry at Maturity Levels

Ambuja the Most Profitable Cement Play With
Growth and Value
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Thank You
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