Crafting Sustainable Strategies
RAJNISH KAPUR takes us through the significant actions initiated by JK Cement.One of the core values of JK Cement is to create sustainable economic value for stakeholders while ensuring a positive impact around the communities they operate. The company has built a solid governance ecosystem to ensure that efforts are carried out in a consistent, accountable and transparent manner. At the same time, to build value for all its stakeholders, JK Cement has initiated significant actions in four strategical areas as below.Cost excellenceIn cement, cost excellence is based on combining advantageous access to raw materials with operational excellence. The largest areas for cost improvement are usually thermal and electricity consumption, clinker factor, labour, maintenance and logistics. Our company has already initiated the process to operational excellence in energy-efficiency by creating performance transparency, focused approach on renewable energy and equipment effectiveness. In addition to standard parameters such as grade and throughput, additional levers are already identified by data analysis to understand the relationships between throughput, yield, energy and the environment at any production rate or product mix. We have also adopted better maintenance concepts to improve cost and using technology like Industry 4.0 and AI/ML to create new avenues to improve the cost further. We are using alternative fuel raw material for cost improvement and sustainable growth.Market strategy for profitable volume growthAcquiring comprehensive market intelligence to develop a clear view of the markets, the company operates in with an objective to determine the best possible price and volume-placement approach for each micro market. Also, building more attractive market portfolios by entering most attractive markets, focusing on improvements in existing markets, setting market-share aspirations, anticipating potential changes and developing a set of strategic initiatives to address opportunities and issues. The company is also continuously developing new products as per market needs to create more value for all stakeholders.Customer relationshipCommunication, commitment and value preposition to the customer are the main three pillars of strong customer relationship Communication: JK Cement is communicating with all stakeholders to understand their needs and challenges and we always try to provide solutions to create a sense of trust that we are always with them in all times. Commitment: To position JK Cement as a trusted partner, entire thrust is always on to deliver quality products and services promised and fulfil commitments to create an environment for long-term relationship. Value preposition: Buyer-seller relationships are based on the principle of exchange – each party expect or demand value from the business. JK always looks to create value for customers to make the relationship more solid by providing them the best quality products and services.Change mind-sets and build capabilitiesBusiness leaders should create an environment of openness, innovation and performance on the changes desired so that they can convincingly lead the change and take frontline staff along on the journey. They should leverage innovative technology tools throughout the learning experience to support enhanced engagement, skill transfer, etc. they should invest more in frontline force and first line managers to increase productivity; and identify and coach the internal talent to give them higher responsibility in the future. About the author: Rajnish Kapur, COO (Grey Cement Division), JK Cement, is a seasoned business leader with rich experience in the cement industry. He joined JK Cement as Business Head for the Grey Cement Division in 2014 and has led the transformation journey of the Grey Cement business.