Gujarat Ambuja, Kesoram Industries, Bajaj Tempo

GUJARAT AMBUJA Growth by Consolidation Consolidation in the industry has led to the emergence of a few players in the market. Following the trend, Gujarat Ambuja has built up huge capacities incorporating several measures to maintain market share and remain profitable .With no fresh capacity in the offing in next few years, Gujarat Ambuja is poised to grow. While in the past, the growth in the company has been checked by capacity constraints, at present, production has gone up by 16 per cent to 70.80 lakh tonne from 60.96 lakh tonne in its existing plants. In addition to this, the company appears to be in a comfortable situation with the commissioning of the 2.5 million tonne unit at Chandrapur, Maharashtra. The new facility depends entirely on captive power and will cater to markets in Maharashtra and Andhra Pradesh. Besides, a two million tonne unit has been commissioned at Wadi. In an industry, where volumes and efficiency are key success factors, the company can aim for growth in market share through increase in capacity. This will prove to be an apt strategy to counter the formidable threat posed by the coming together of two major players of cement industry, Larsen and Toubro and Grasim, the Aditya Birla Group company. The approved merger of Gujarat Ambuja Cements with its ailing subsidiary Ambuja Cements Rajasthan, as part of rehabilitation scheme submitted to the Board for Industrial and Financial Reconstruction (BIFR), will strengthen the company