Page 17 - Cost

Case Study

Towards a Sustainable Development: Te UltraTech

Synergy

By Dr. Sreehari Chava

Director - Shantiniketan Business School
Nagpur, Maharashtra

Te Modern Cost Manager extends the utilises the Sustainability Report as a tool
perception of cost to every resource that is to display its eforts towards driving a triple
consumed in the process of value addition. bottomline agenda: the Planet, People and
To that extent, Cost Accounting is an enabler Proftability…… All this is done with a focus
device that facilitates the management of on alternative solutions, and discovering
resource utilisation and resource conservation new avenues to promote its sustainability
while manufacturing a product or delivering agenda.” Tat is how Bottomline Proftability
a service. Te entity gains competitive edge is correlated to the Environment and a plan is
where the dual functions of resource utilisation laid for a cost competitive future well ahead of
and resource conservation are carried on to the other peer players.
optimality.
In its Annual Report for 2010-11, the Company
UltraTech Cement (Grasim Industries highlights its thrust on use of alternative
Limited), an Aditya Birla Concern, is a Rs.27, fuels to reduce consumption of fossil fuels
900 crore company with a reported net by substituting these with wastes from other
proft of Rs.2704 crores for the fnancial year industries. Te Company is reported to have
2012-13. Te Company traces Environment saved using coal by recoursing to alternative
Conservation as a catalyst for Sustainable fuels such as processed municipal solid waste,
Development. Te company, over the last agro waste, tyre chips and used polythene and
couple of years, carved out the environmental plastics. In 2009-10, the Company substituted
challenges into a synergy of growth with the use of natural resources with 20,000 tons
responsibility that leads to sustainable of waste materials as fuel, equivalent to 10,000
development. In the process the company tons of coal burning every day. In the year
throws up case based learnings to the modern 2010-11, the Company has used 70,305 MT
cost managers in terms of alternative fuels, of alternative fuel, of which 43,946 MT is bio-
alternative raw materials, alternative power, mass, which has saved nearly 42,000 MT of
alternative routes, water conservation, and so coal use. In the year 2011-12, the Company
on.Te company brought out its ‘Sustainability has used 70,744 MT of alternative fue, of which
Report 2010’ highlighting the theme 28,717 MT is biomass, which has saved nearly
“Alternatives in Action”. In its Approach to 42,000 MT of coal use in the year.
Sustainability, the report states “Te Company

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