We own quarries and lime, as their fixed costs are manageable and barriers to entry are high
THIS GIVES US PRICING POWER
-> WE CALL THIS 'INVEST'
We help and empower local managers to become best in class operators
THIS GIVES US COST CONTROL
WE CALL THIS 'IMPROVE'
We seek to sell everything we quarry and add downstream activities only locally
THIS GIVES US MARGIN EXPANSION
WE CALL THIS 'INTEGRATE'
We confront industrial challenges be it footprint or product related
THIS GIVES US A COMPETITIVE EDGE
WE CALL THIS 'INNOVATE'
Construction materials, and industrial minerals evolve with GDP
MAXIMISE VALUE CHAIN EXPOSURE
VERTICAL INTEGRATION
Always aim to have revenue growth ahead of GDP growth
WE NEED PRICING POWER
WE FIGHT FOR MARKET SHARE
Always aim to have cost growth lag GDP growth
WE FIND COST SYNERGIES
CENTRALISE TO CUT HEADCOUNT
Fighting for market share naturally implies a Volume driven strategy
PRIORITISE VOLUMES OVER PRICE AND OVER COST
If you have a Volume driven strategy you cannot have real sustained Pricing Power
WHICH WILL LIMIT ITS PRICE RISES TO GDP GROWTH AT BEST
In a trade-off between Cost and Volume, Volume wins to protect Market Share
WHILE ITS COST BASE RISES FASTER, TO PROTECT VOLUMES
Quarries are the asset that drive the strategy, not RMX, not cement…
Therefore, you work using platforms of locally compatible assets/businesses
Therefore, you integrate horizontally across the spectrum of products
You integrate along the value chain only when it generates the right returns
You compete locally where proximity and service matter
You have pricing power and cost synergies that are not secondary to volumes