Strategic Diamond Analysis of My Company Rmc Division of Ultratech Cement in India

Strategic Diamond Analysis of My company RMC division of UltraTech Cement in India.

Economic Logic-

How will returns be obtained- We did surveys to know the potential of area in cubic meter and then we caluclated Raw mix margin by calculating RM cost, manpower cost. Then we calculated the revenue which can be obtained by multilpying potential sales into RMM which gives us the idea to assess break even volume recover expences and the profitability to work .

Arenas.

A) Where will we be active- RMC plants were initially set up at all maojor cities as the basic concepet of RMC is to suuply concrete at locations where space is a constraint to store material and work has to executed fast with excellent quality of concrete and then we entered tyre 2 cities.

B) Which Product Category- Initially normal grade of concrete and then VAC (value added concrete can be added based on specific requirement and issues.

C) Which Channel- Intially with direct sales as the concept was new then we added our cement dealer and some sales promoters related to construction industry.

D) Which Market Segment- Projects and Retail both.

Vehicles-

We started our operations with our own plants in major cities which had huge potential, Then we expanded in tyre 2 cities by taking lands on lease and putting our own plants and operated, To enter small cities which have potential but volumes are inconsistent and market is unorganised we are working on trading models as well in which we tie up with a party who puts up plant and we pay them rent, or we aggrement to by certain minimum volume and we control quality and do sales on our own so that quality is not compromised and the brand is not diluted at the same time.

Differentiators-

Key differentiator we developed is our excellent and consistent quality which is backed by strong brand of UltraTech, Our brand is PAN india which gave us the recognition in concrete market as well and by using our own cement we are able to maintain consistent quality which is not the case with most of the our competitors either local or branded players.

Staging-

We made a strategy of expansion in which we add plant in cities where our volume start touching 10k cum/month, and to add plant in the new cities where volume potential is 3-4k cum/month and RMM is approx 15k/cum. This strtegy was developed based on the experience to be able to deliver better and the cost stucture to sustain.