Construction

Ambuja Cement has digitized its entire supply chain process to optimize cost in FY20

10 Jul, 2020, 09:08PM | Economic Times

Mumbai: Cement Maker, Ambuja Cement is digitizing its entire supply chain to improve visibility of the process, deliver quality customer service, and optimize cost, said Martin Kriegner, director of the company, while conducting the company's first virtual annual general meeting on Friday. “Company's strategy of taking strong measures to enhance overall efficiency and productivity, as well as fuel mix optimization and strategic sourcing helped mitigate rising input costs such as raw materials and fuel,” he said. As part of its technology and digitisation, the company has launched Transport Analytics Centre. It is set up to improve operational efficiencies and distribution safety to yield positive results in the logistics costs. The company said it's optimistic about the future and remains confident that the Covid-19 impact is temporary. Kriegner also informed the shareholders about the steps undertaken by the company to deal with the Covid-19 situation emphasizing the importance of the health & safety of employees, their family members and business partners. “I would like to reiterate that we are very optimistic about our future and believe that despite the Covid 19 pandemic, our country will continue on its growth trajectory soon,” Kriegner said. The recent initiatives by the Government will help resurgence of rural demand and infrastructure projects including affordable housing, he added. Commenting on the performance of Ambuja, Kriegner mentioned that the company delivered robust operational as well as financial performance, notwithstanding a challenging economic environment. “To mitigate the impact of the Coronavirus situation, Ambuja Cement has executed a robust business continuity plan focused on Health, Cost, and Cash. Ambuja Cement is a debt-free company and has sufficient cash reserves," Kriegner said. The company reported a 12% rise in consolidated net profit of Rs 554.25 crores for the March quarter of the year 2020, with sales volume degrowing by 10% to 5.77 million tonnes. The total expense during the January-March quarter was registered at Rs 5,388.38 crores, a decline of 12.4% from Rs 6,151 crores in the same quarter last year. The Company's greenfield expansion project at Marwar Mundwa in Rajasthan is progressing as per schedule and is expected to commence operations by next year. This project will add about 3 million tonnes of Clinker to produce 4. 5 million tonnes more of Cement, said the company in a statement. The master supply agreement between Ambuja Cement and ACC is progressing well and the synergy projects are delivering expected supply chain benefits.