Value Chain Analysis of UltraTech Cement

UltraTech Cement is a cement-manufacturing Indian multinational company. The company started its cement manufacturing and building material business in 1983. Today, we’ll discuss the value chain analysis of UltraTech Cement supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Composition and Key Material of UltraTech Cement

  • Pozzolanic material
  • Gypsum
  • Clinker

Usage of UltraTech Cement

  • Commercial and residential structure
  • Railways
  • Airport
  • Bridges
  • Flyovers
  • Dams
  • Apartments
  • Residential complexes

The Value chain analysis of UltraTech Cement supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s supply chain analysis of UltraTech Cement value chain analysis company example as follows;

Value Chain Analysis of UltraTech Cement

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of UltraTech Cement supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of UltraTech Cement

The primary activities are directly involved in the production of products and goods and adding value to the cement and building material company. Some of the five main primary activities in the value chain analysis of UltraTech Cement supply chain analysis are as follows;

Inbound Logistics of UltraTech Cement

I-Suppliers Network

UltraTech Cement has established a very large network of suppliers comprising of 128 suppliers and vendors. The building material company deals with multiple suppliers in various categories ranging from procurement, packaging, raw materials, fuels, and equipment. However, these suppliers contribute approximately 85% procurement of the company.

II-Sustainable Supply Chain

UltraTech Cement is highly careful and cautious about the ethical and sustainable practices of its suppliers and vendors. The building material company prefers to collaborate with suppliers that comply with the company’s code of conduct and government regulations. However, the supplier’s code of conduct the company deals with the following areas;

  • Ethical and healthy working environment
  • Responsible sourcing of raw material
  • No child and forced labor
  • Compliance with environmental regulations  

Outbound Logistics of UltraTech Cement

I-Transportation & Distribution

Along with an in-house transportation fleet, UltraTech Cement collaborates and partners up with various 3rd party logistics service providers. They move raw supplies and materials from the authorized suppliers and vendors to the production and manufacturing factories, warehouses, and distribution centers, and then to the retail stores.

II-Sustainable Transportation

In order to decrease the carbon emission rate, UltraTech Cement has a fleet of more than five electric trucks and 3 charging stations. They move raw materials inside and outside the production and manufacturing factories. The objective is to reduce the carbon emission rate through transportation.

Operations of UltraTech Cement

I-Production & Manufacturing Factories

UltraTech Cement has a network of approximately 307 production and manufacturing factories. Out of these, 33 are ground units, 8 are bulk packaging terminals, and 24 are integrated production units. They have a production capacity of producing 152.7 million tons of grey cement annually.

II-Sustainable Operations

UltraTech Cement engages in multiple sustainable operations with the objective of reaching a net zero carbon emission rate by 2050. Some of the main social welfare initiatives of the company are as follows;

  • Promoting Social causes
  • Community infrastructure
  • Sustainable livelihood
  • Healthcare
  • Education

Marketing & Sales of UltraTech Cement

UltraTech Cement runs various types of marketing and advertisement campaigns for the promotion of its brand, products, and services. The building material manufacturing brand employs various media channels, social and digital media platforms, celebrity endorsements, brand ambassadors, and influencer marketing to approach the targeted segments of the customer market.

Services of UltraTech Cement

UltraTech Cement offers a wide range of products and services to customers. The additional service portfolio helps the company to amplify its customer market reach and promote brand loyalty. However, some of the main services of the company are as follows;

  • Environmental sustainable
  • Social welfare initiative
  • Community infrastructure
  • Healthcare and education projects

Supporting Activities of UltraTech Cement

Supporting activities are indirectly involved in the production of products and goods and adding value to the building material and cement company. Some of the main supporting activities in the value chain analysis of UltraTech Cement supply chain analysis are as follows;

Infrastructure of UltraTech Cement

UltraTech Cement has established a very large infrastructure of production and manufacturing units, suppliers and distributors’ networks, retail store networks, and distribution centers. The large and well-developed infrastructure helps the building and cement manufacturing brand to smoothly perform its various operations and deliver the finished product to the customer market without any disruptions and delays.

HRM of UltraTech Cement

UltraTech Cement has employed approximately 23000 employees to manage its global operations. The human resource management department of the company plays a key role in building a large database of employees, contracting with sustainable suppliers, recruiting the right workforce for the job, and offering equal employment opportunities to all regardless of any differences.

Technological Development of UltraTech Cement

UltraTech Cement invests a significant amount of capital resources in research and technological development. It allows the company to develop efficient methods of production, employ the latest and advanced technology, automated technological processes, and efficient materials for production. It allows the company to reduce waste and improve the overall production processes.

Procurement of UltraTech Cement

UltraTech Cement is highly careful and cautious about ethical sourcing and procurement of raw materials and supplies from suppliers and vendors. The company has set up a strict code of conduct for them to ensure their compliance with human rights standards and industry regulations.

Conclusion: UltraTech Cement Value Chain Analysis Example Company | Application of Value Chain Analysis Process |Process of Value Chain Analysis

After an in-depth study of the value chain analysis of UltraTech Cement; we have realized that UltraTech Cement is the world’s leading cement manufacturing brand. If you are learning about the UltraTech Cement value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.

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