Interesting Costs Cutting Techniques By Companies

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Gujarat Ambuja Cement Ltd (GACL): Ambuja Cements

India is world’s second largest cement manufacturer after china being the first. Companies like Gujarat Ambuja, ACC , L&T have a mjor contribution in it. With cost efficiency, plant efficiency, quality maintenance – Gujarat Ambuja Cement Limited has been able to identify its key cost areas and reduce it to the manageable level. GACL has focused upon economies of scale and low power consumption at all levels of cement production. It has made some strategic investments/ acquisitions to reduce its raw material costs. Through packaging innovation (in the form of sealed tankers and air-tight holds) and sea-route transportation company has been able to supply produced cement from Ambujanagar, Gujarat to its Mumbai terminal and from Mumbai to every possible destination. They have employed high degree of automation in all their large modern plants. Use of substitutes for coal needed in fuel generation has helped GACL to cut down its major fuel / power costs.

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