1. Ambuja Cement Limited By Manish Agarwal November 14, 2007

2. Content  Brief History  Positioning in Indian Cement Industry  Financial Performance  Cost drivers  Expansion Project  Financing of expansion projects  Conclusion

3. 3 8/7/2015  Capacity built up from 0.7 Mio t in 1986 to 18.0 Mio t as of today at CAGR of 18%  Organic growth and growth through acquisitions  2001 - Private equity investors (American International Group & Government of Singapore) invested in ACIL  2005 - ACIL restructured as a joint venture with Holcim  2006 - Founder promoters sold part of their holding in ACL in favour of Holcim  ACL is a Holcim Group company since May 2006 Brief History -- a growth story

4. 4 8/7/2015 Content  Brief History  Positioning in Indian Cement Industry  Financial Performance  Cost drivers  Expansion Project  Financing of expansion projects  Conclusion

5. 5 8/7/2015 Cement Plant Grinding Station Terminal Port North – Central Region Cement Capacity 7.0 Mio t Positioning - ACL South-West Region Cement Capacity 8.0 Mio t Eastern Region Cement Capacity 3.0 Mio t Overseas: Cement receiving station at Galle (Sri lanka), which is not indicated in the map above

6. 6 8/7/2015 Strategy  Strong presence in growing markets of North & West  Largest exporter of cement  Grinding close to market  Premium brand  Extensive & primarily exclusive distribution network  Over 6,600 dealers and 20,500 retailers  Captive Infrastructure  Port, Receiving Terminals and Power Plants (230 MW)  Sea Transportation  Seven vessels

7. 7 8/7/2015 Export Cement and clinker export volumes [Mio t] ACL exports 1.42.0 1.5 1.8  Gujarat provides around 80% of Indian cement exports. Exports markets are mainly in the Middle East but also in Sri Lanka (0.8 million t)  Export flows from Gujarat are expected to decline from 2008- 2009, due to strong demand and better realization in the local market. 6.5 9.2 9.9 9.7 9.5 0 2 4 6 8 10 20022003200420052006 Comments

8. 8 8/7/2015 Asset footprint South West  Optimised logistics costs through use of sea transportation to serve the key Mumbai market Surat Ambujanagar Maratha Panvel Ahmadabad AssetCement capacity [million t] Add. cem capacity [million t] Year Ambujanagar5.0 Maratha3.0 Surat1.02007 Ahmadabad1.52009 Total8.02.5

9. 9 8/7/2015 Asset footprint North Central Dadri Nalagarh Rauri Roorkee Ropar Bathinda Darlaghat Rabriyawas AssetCement capacity [million t] Add. cem capacity [million t] Add. clk capacity [million t] Year Darlaghat2.0 Rauri 2.22009 Rabriyawas2.0 0.62007 Ropar2.5 Bathinda0.5 Roorkee 1.0 2007 Dadri 1.5 2009 Nalagarh 1.5 2009 Total7.04.02.8  Pioneered the concept of split grinding units to optimise logistics costs.

10. 10 8/7/2015 Asset footprint East Farakka Bhatapara Sankrail AssetCement capacity [mt] Add. clk capacity [mt] Year Bhatapara1.02.22009 Sankrail1.0 Farakka 1.0 2007 Total3.02.2  Entry into the eastern market through acquisition of Bhatapara cement plant in 1997

11. 11 8/7/2015 ACL sales evolution – all India 36 37 36 12 11 10 12 40 37 40 42 41 12 15 14 10 11 0 20 40 60 80 100 20022003200420052006 In % ACL Market Share in % 10 9 South West RegionEastern Region North Central region Exports By RegionComments  Sales up from 10.9 million t in 2002 to 16.3 million t in 2006  Consistent regional distribution

12. 12 8/7/2015 Sales and market share: South West  Top three players represent around 52% of the market share*  Dominance of regional players in the southern market Comments * In 2005 and 2006, Top 3 are: ACL+ACC; Grasim + Ultratech, ICL Sales development Top 3* [%] 3937 ACLACC Grasim UltraTech ICL MadrasKesoram ZuariOthers Market share 54 36 52 [Mio t] 99888 4.0 4.9 5.1 5.2 6.0 0 2 4 6 8 20022003200420052006 ACL Market Share in %

13. 13 8/7/2015 Sales and market share: North Central * In 2005 and 2006, Top 3 are: ACL+ACC; Grasim + Ultratech, Jaypee ACLACC GrasimUltraTech Century JK Jaypee Shree Others Top 3* [%] 5355414039 Birla Corp Market share [Mio t] 1213111413 4.4 5.0 5.8 6.3 6.6 0 2 4 6 8 20022003200420052006 Sales development ACL Market Share in %  Top three players now represent around 53% of the market* but still fragmented among 2 nd and 3 rd tier players  Jaypee and Shree are relatively aggressive competitors  Currently the region with the highest ACL presence Comments

14. 14 8/7/2015 Sales and market share: East Market share * In 2005 and 2006, Top 3 are: ACL+ACC; Grasim + Ultratech, Lafarge. Their market share could reach close to 80% with the likely integration of Century into Grasim/Ultratech Top 3* [%] ACLACCGrasim UltraTech CenturyLafargeOrissa Birla CorpOthers 51 62 664750 [Mio t] 88888 1.3 1.41.5 1.82.0 0 2 4 6 8 20022003200420052006 Sales development ACL Market Share in %  Most consolidated compared to all India  Top three players represent around 66% of the market* Comments

15. 15 8/7/2015 Content  Brief History  Positioning in Indian Cement Industry  Financial Performance  Cost drivers  Expansion Project  Financing of expansion projects  Conclusion

16. 16 8/7/2015 Financial performance showing improving trajectory 2001-20022002-032003-042004-052006* ROCE (%)99131747 ROE (%)1214172243 ACL’s EBITDA in FY 2006 witnessed an impressive growth * Figures for 2006 pertain to 18 months period July 05 – December 2006

17. 17 8/7/2015 Rs. In crores Full YearNine Months 2006 2007% (+/-) Sales Volume16.312.212.52.46 Sales4847.863518.774198.1319.31 EBITDA1880.681321.661669.7626.33 EBITDA margin38.8%37.56%39.75% Profit after tax**1340.071,099.53967.6113.63 Key financial figures * * IGAAP. Figures for FY 2006 have been restated to make it comparable, on account of change in accounting year and merger of ACEL ** Excluding extraordinary income

18. 18 8/7/2015 Content  Brief History  Positioning in Indian Cement Industry  Financial Performance  Cost drivers  Expansion Project  Financing of expansion projects  Conclusion

19. 19 8/7/2015 Power Clinker content Fuel (coal) Transport  Captive Power Plants, AFR  AFR/process efficiency / international sourcing  Composite cement  Grinding facility close to end user, production close to raw materials  Terminal logistics Cost drivers

20. 20 8/7/2015  Consumption per unit of Production  Increase Captive Generation  Measures  Shift from liquid to solid fuel to reduce cost of captive energy cost by approx. Rs.2 per unit.  Reduction dependence on grid power, with the construction of additional power plants aggregating to 178 MWs  Captive power ensures continuous and consistent supply of power Energy

21. 21 8/7/2015 Content  Brief History  Positioning in Indian Cement Industry  Financial Performance  Cost drivers  Expansion Project  Financing of expansion projects  Conclusion

22. 22 8/7/2015 2.2 - 0.6 2.2 - 5.0 Expansion projects North SW East ClusterLocation 20072008200920102011 Cement (million t) - 1.5 1.0 - 1.0 1.5 - 1.0 7.5 Grinding Clinkering GreenfieldBrownfield Rauri Dadri Nalagarh Roorkee* Rabriyawas Surat Ahmedabad Bhatapara Farraka* Total Clinker (million t) Grinding Capital outlay (in USD million)  Clinker 388  Grinding 302  Captive power plant 203 * Already commissioned Grinding

23. 23 8/7/2015 Content  Brief History  Positioning in Indian Cement Industry  Financial Performance  Cost drivers  Expansion Project  Financing of expansion projects  Conclusion

24. 24 8/7/2015 Million USD 2001-02 2002-03 2003-04 2004-05 2006* Net Cash from 28 68 144 180 453 Operating Activities Debt:Equity 1.10 1.09 0.63** 0.52 0.25 Debt:EBITDA 3.83 3.42 2.61 1.41 0.38  Improvements in operational efficiency  Favourable pricing environment  Net cash positive in 2007  Call option in ACIL to generate approx. USD 150 Mio Financial position Strong cash flows and low debt : equity ensures financial flexibility for new projects * Figures for 2006 pertain to 18 months period July ’05 – December 2006 ** improvement on account of conversion of convertible bonds

25. 25 8/7/2015 Content  Brief History  Positioning in Indian Cement Industry  Financial Performance  Cost drivers  Expansion Project  Financing of expansion projects  Conclusion

26. 26 8/7/2015 Conclusions  Solid market position built up within short period of time through organic growth and acquisitions  Pin-pointed positioning tied to substantial captive infrastructure to serve markets including sea transportation, capability to export  High use of alternative raw materials in production of composite cements  Substantial greenfield and brownfield expansions plans to grow within the attractive markets and an internal financing capability to fund expansion projects

27. 27 8/7/2015 Cautionary statement regarding forward-looking statements This presentation may contain certain forward-looking statements relating to the future business, development and economic performance. Such statements may be subject to a number of risks, uncertainties and other important factors, such as but not limited to (1) competitive pressures; (2) legislative and regulatory developments; (3) global, macroeconomic and political trends; (4) fluctuations in currency exchange rates and general financial market conditions; (5) delay or inability in obtaining approvals from authorities; (6) technical developments; (7) litigation; (8) adverse publicity and news coverage, which could cause actual development and results to differ materially from the statements made in this presentation. Ambuja assumes no obligation to update or alter forward-looking statements whether as a result of new information, future events or otherwise. Disclaimer