Last year I shared the momentous news that Holcim had invited Ambuja to merge withHolcim India- a union that would make ACC Limited a subsidiary of Ambuja. I am happy toinform you that we have completed all formalities and are awaiting FIPB clearance. I amhopeful this will be obtained soon and we can begin a new chapter in our company Rs shistory.
For the cement industry 2014 was a year of consolidation. Most companies continued tostruggle with weak demand excess capacity and falling prices. In the face of thesechallenges it gives me great pleasure to announce that the company has performed wellrecording top line growth in EBITDA revenue and PAT. Our net sales and profit increasedby 9% and 16% to Rs 9911 crores and Rs 1496 crores respectively over the previousyear. This outcome is certainly the result of our Rs Operational Excellence Rs programsand the untiring efforts of our people to make Ambuja a better more efficient company.
The future for the industry looks positive with the new government Rs s focus ondevelopment of infrastructure and housing. Moreover a rise in GDP from these initiativeswould provide an additional impetus for the cement industry given the strong correlationbetween GDP growth and India Rs s per capita cement consumption which still ranks belowthe world average.
Since Ambuja Rs s inception we have dedicated ourselves to being the Rs mostsustainable cement company Rs . This reflects our deep concern for the scarcity of naturalresources that faces us- an issue that will only intensify for future generations. Becauseour industry is particularly resource-intensive we have committed ourselves tocontinually reduce our consumption of non-renewable resources and decrease CO2 emissions.
Many of our initiatives in this area have started to bear fruit. Our work with waterconservation has made us the only Rs water-positive Rs cement company in India. We havealso made concerted efforts to find alternative fuels. These initiatives have beenrecognised and awarded by industry bodies like CII and ASSOCHAM. Our wider CSR effortswere recently acknowledged in the Harvard Business Review as successful on a holisticlevel.
These achievements have only deepened our people Rs s Rs I Can Rs spirit to continueour journey towards sustainability. This year with the assistance of KPMG we developedan entirely new index to gauge our impact in the social sphere. This index called Rs TrueValue Rs lets us ascertain the social and environmental impact of our activities nowand in the future. We believe it will help us to continually better ourselves whileprotecting the communities and resources around us.
We are also committed to improving the health and safety of our employeessubcontractors third parties and visitors. Our safety initiative Rs We Care Rs coversall our stakeholders and is driven through top management commitment and visibleleadership across all levels.
Our customers have always been at the heart of our efforts and we continue to provideexcellence to them through innovative products and solutions. We recently launched AmbujaPlus a premium quality cement product aimed at individual home-builders. Last year wewere able to reach out to thousands of customers across the country by providingend-to-end value-added technical services through initiatives like the Ambuja KnowledgeCentres which provide know-how to construction professionals.
Today we stand at the threshold of another year that will hold many challenges. I amsure that the Rs I Can Rs spirit of our people will turn every trial into an opportunity.With our enduring focus on sustainability safety efficiency quality and with thesupport of all stakeholders I am sure the company will scale new heights and set newbenchmarks for the industry.
With warm regards
N. S. Sekhsaria
18 February 2015