cenral india cement co. by Gladiators

8/9/2019 cenral india cement co. by Gladiators

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http://en.wikipedia.org/wiki/File:Gladiators_from_the_Zliten_mosaic_3.JPG


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Group Members

ANAND KHARADI

(1212)UMESH MAKWANA(1213)SAUMIL TRIVEDI(1227)

GAURANG DESAI


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Case at Glance

Cement industry in IndiaCharacteristics of indian cement industryTechnologyProduction CentersReasons for Government encouragementCompany ProfileMarket SituationMarketing Problem in rural areasSuggestions


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About cement industry inIndia

In 1992-93 fourth largest producer with 60 milliontonnes but installed capacity was 70.50 milliontonnesAnd future production would goes to 100 million

The different types of cement produced likeordinary portland, portland pozzolona, portlandblast furnace, low heat cement, special highstrength cement, oil well cement, coloured andwhite cement


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Characteristic of indiancement industry

Demand had been affected by variety of factorslike cut down govt. expenditure on developmentactivitesInflationary trend lead to slow down of construction in urban areasMany mini cement plants had been set up withgovt. encouragement to increase supply


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Technology

Wet process technology was used but it was highfuel consumptionModern dry process technology which save coalconsumption upto 40 to 45% as compared to wetprocess

The latest precalcinator technology whichoptimum power utilization could be achieved

But the modern teechnology required investment180 to 200 crores for a single plant which isimpossible for small companies


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Production centres The production centers located near availabilityof raw material like limestone.90% of limestone were in Madhya Pradesh,

Tamil Nadu, Andhra Pradesh, Rajasthan,Gujarat, Bihar, karnataka.Production and consumption of cement

Region production consumptionWest & south 77% 57%North & east 20% 43%


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Reasons for govt. encouragement

Utilization of limestone reservesInfrastructural requirement of mini cement plantsmuch less

Inherent rural development and employment inthese plantsCost involved in having captive power unit wasless

Mini plants produced less quantity with betterquality


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Company profile

Central India cement company was set up in 1983with capacity of 1 million tones per year

The manufacturing plant in Madhya Pradesh

Aditya Kaul the director of company

Mr. Nitya Bansal vice president of company

In mid 90s production capacity 2.5 million tonees p.y


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Market situation

There were 90 players in cement industry andACC enjoyed 15% market share while CICCenjoyed 3.4%

The company decided to enter into rural marketof UP and Bihar but there was dominant playerACC.

The company set up sales strategies to coverthrough regional marketing office and it wasdivided in area marketing office


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Marketing problem in rural market

In rural area mostly user were farmer but influenceof a mason when buying first time which shows verylow awareness about cementVillage Mukhia also a strongest influence for buying

cement which means people will buy whatever brandSurpanch saidWord of mouth was a communication because of lowliteracyPrice was one of the main problem because people

will buy only low price productsCompetitor is also well establish so necessary tocompete with ACC


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Cont

Production capacity and installed capacity is verydifferentiatedAvailability of raw material in rural areas is lack sotransportation facilities are expensive

Difficult to set up cement industry in rural area becauseof unskilled labor supplyPeople are unaware about different type of cement inmarket


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suggestions

After a structured questionnaire and getting the views of people of village it will be easy to find out solutionKnow about customers ideas about different brand nameFor which purpose they required cementIn which quantity they would like to purchaseHow would they like to purchase i.e. by others view or own perspectiveAvailability of cement of CICC in rural areasAdvertising of cement in different ways that can be understand byeven illiterate customerCompany also require to produced more cement to send in rural areas


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Cont..

Company should make a mini industry which cansupply cement quickly in rural areas and raw materialare available thereNeed for proper work force and distribution channel to

achieved maximum customers.To take initiatives of building basic amenities by

promoting the cement brandTry to influence MUKIYA of the village to promote

CICC brandProvide attractive incentives to masons to utilize our

brand cement


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cenral india cement co. by Gladiators

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