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Over 40% of the production cost of cement is power. It quickly became clear to us that if we were to run a profitable company, wed need to keep power costs to the minimum. So we focused our efforts on improving efficiency at our kilns to get more output for less power. Next we set up a captive power plant at a substantially lower cost than the national grid. We sourced a cheaper and higher quality coal from South Africa. And a better furnace oil from the Middle East. The result is that today were in a position to sell our excess power to the local state government.
Our sea-borne bulk cement transportation facilities
meanwhile has brought many coastal markets within the easy reach. It has
also made Ambuja India's largest exporter of cement consistently for the
last five years. |