Summer Training Project Report of Bangur Cement 3

SUMMER TRAINING PROJECT REPORT

“BRAND AWARENESS AND PERCEPTION ABOUT BANGUR CEMENT”

SHREE CEMENT LIMITED (BANGUR CEMENT)

FOR THE PARTIAL FULFILLMENT OF THE REQUIRMENT FOR THE AWARD OF

MASTER IN BUSINESS ADMINISTRATION

SUBMITTED By

GAURAV KUMAR SHIVHARE

UNDER THE GUIDENCE OF

DR. SHIKHA SHARMA

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY, RAJASTHAN

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PREFACE

The summer training project of management course plays an important role for a

management student to develop him into a well groomed professional. It provides him

the theoretical concepts and practical exposure in the field of application. Summer

training project also provides him an idea of dynamic and versatile professional world as

well as an exposure to the intricacies and complexities of the corporate world.

My summer training in BANGUR CEMENT BRAND OF SHREE CEMENT LIMITED

jaipur was an eye opening experience to see the level of customer awareness and

perception among people of the jaipur city & local area.

During MBA program I was taught about two dozen subjects which if not applied

properly are a simple waste of time. At BANGUR CEMENT (SHREE CEMENT

LMITED) I got a chance to apply management theories to the latest competitive and

marketing oriented environment.

In one and half months of market exposure, I learned a lot of various aspects of

organizational structure, departments, sales, communication and their impact. Now I

can say one thing that the best way to learn is at work. It was a real interesting

experience and I enjoyed every part of it and hope that it would be helpful in my future.

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ACKNOWLEDGEMENTS

Successfully accomplished project work and the completion of this report have been

made possible by the significant contributions of many people.

I would like to express my sincere gratitude towards Mr. RAVINDRA SOMANI, my

organizational guide for giving me the support and encouragement that I needed, and

providing many valuable suggestions and insights for my work. I would also like to thank

my institutional guide DR. SHIKHA SHARMA for her support.

Finally, I’m grateful to the entire Bangur Cement family, for co-operating with me during

my work here.

GAURAV KUMAR SHIVHARE

MBA, Session of 2011-2013

AMITY UNIVERSITY, RAJASTHAN

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-: CONTENTS:-

S.NO PARTICULAR PAGE NO.

EXCUTIVE SUMARY 6-9

1. INTRODUCTION

Company Overview

Bangur Cement- Scl’s Premium Brand

Vision of SCL

Philosophy of SCL

Mission of SCL

SCL Manufacturing units

Business & managerial challenges for SCL

Market of SCL

SCL’s Brand & Products

Strengths of SCL

SCL’s Manpower profile

Key Operational Highlights

Recognition and Awards

SCL vis-à-vis Competitors

Information Technology at SCL

Comparison between various cement brands

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2. INDUSTRY OVERVIEW

Cement industry in India

Major Players in Indian Cement Industry

Process Technology

Raw Materials for Cement Production

Process

Stages of Cement Production

Types of Cement

Scale of Operations

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3. RESEARCH METHODOLOGY

Objective of the study

Area covered

Types of research

Data collection

Data analysis and finding

Marketing research

Classification marketing research

Process of marketing research

4. QUESTIONNAIRE

Questionnaire

Dealer /sub dealer report

5. CONCLUSION

6. RECOMMENDATION

7. BIBLIOGRAPHY

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EXCUTIVE SUMMARY

Cement is a key infrastructure industry. It has been decontrolled from price and distribution on

1st March, 1989 and deli censed on 25thJuly, 1991 Moreover it is the material which plays an

important role in building not only the colossal structures but also our dreams in the form of

our houses, keeping us protected against the changing climate. Our country takes the pride of

being the second largest manufacturer of cement in the world preceded by only China. We

have constantly been exercising one of the best practices of cement production, giving rise to

productivity, quality and efficiency.

The cement industry in India is experiencing a boom on account of the overall growth of the

Indian economy. The demand for cement, being a derived demand, depends primarily on the

industrial activity, real estate business, construction activity, and investment in the

infrastructure sector. India is experiencing growth on all these fronts and hence the cement

market is flourishing like never before. Indian cement industry is globally competitive because

the industry has witnessed healthy trends such as cost control and continuous technology up

gradation. It is believed that cement demand in India is expected to grow at 10% annually in the

medium term buoyed by housing, infrastructure and corporate capital expenditures.

As mentioned above, the Indian cement industry is the second largest producer of quality

cement, which meets global standards. The cement industry comprises more than 50 cement

companies with 130 large cement plants with an installed capacity of 156.26 million tones and

more than 300 mini cement plants with an estimated capacity of 11.10 million tones making a

total installed capacity of 167.36 million tones.

Continuous technological up gradation and assimilation of latest technology has been going on

in the cement industry. Indian cement industry is modern and uses the latest technology. India

is also producing different varieties of cement like Ordinary Portland cement (OPC), Portland

Pozzolana cement (PPC), Portland Blast furnace Slag Cement (PBFS), Oil Well Cement, Sulphate

Resisting Portland Cement, White Cement, etc.

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Future growth of the industry is belief to be driven by expected GDP growth of more than 8

percent, growth of the housing sector and the development of roads, ports, airports and other

infrastructure.

This project consists of knowing the brand awareness and perception about Bangur cement.

This is one of the three brands of shree cement limited company; other two brands are shree

ultra red oxide and rock strong. These three brands have the different marketing and

distribution team. Positioning and marketing Strategy of these three brands differ from each

other. So for the development of Brand first step is to understand the brand awareness and

perception among the Customers (retailers, dealers, builders and others). A lot of secondary

research was done for it and I was the part of it. After accessing the situation we did the Survey

on all retailers, dealers and on all under construction sites in all over Jaipur. This survey helps us

to understand the awareness and perception of people about the brand which give us option to

follow market development strategy in which we must enter into the new geographical markets

and must expand our Distribution networks. With consultation of my organizational guide we

did Segmentation, targeting, & positioning for the company. Then we also divided Marketing

mix for this brand. And to find out the solution of all them we Conducted survey among dealers,

retailers, and builders. To find out their Requirement and consumers preferences for the brand

of cement. I came to Conclusion that in non trade consumers mostly demanded j.k. super and

ultratech Cement while in trade business consumers mostly demanded for ambuja cement And

ultratech and binani cement. Reasons which are included behind of these Demands are being

great brand identity, poor knowledge about quality and Manufacturing of cement and the

biggest one is dependability on Engineer/architect or other construction persons. For this

consumers had to be Pushed or diverted to buy Bangur cement. As position of the Bangur

cement Suggest a premium brand, but still, local people don’t believe that quality is a Matter.

Hence, emphasis must be laid on quality improvements and also make the people to

understand that it differ in quality with other brands. So that it becomes per with positioning.

Survey results confirm that bangur has been able to make a mark in market and perceived to

have good quality and also there is a great demand of cement in market. But survey results also

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shows that despite of above mentioned positive factors it has not been able to make a

breakthrough in building its brand name the reason come out to be its low brand awareness

(lack of dealer motivation/ meetings/ advertising) and cut-throat in-house brand competition.

To increase the brand awareness aggressive promotion need to be carried out ensuring its

effectiveness in making a mark, also as survey results confirm that it’s the

dealer/mason/contractor who is the ultimate decision maker in choosing a brand so efforts

need to be made to build long term relationship with all these people. Meetings, gifts, and kit

distribution are the best tool to ensure masons understanding and satisfaction. As dealer play a

prominent role in sale of a brand every possible effort (like training/ plant visit/ additional

margin/ sufficient POP material distribution/ grace period of three days for payment) need to

be made a strong dealer network.

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PART 1

COMPANY OVERVIEW

BANGUR CEMENT (SHREE CEMENT LIMITED)

2.1 INTRODUCTION

Shree Cement Ltd (SCL) is present in the cement and power sector. It is the largest cement producer in North India and among top six cement manufacturing groups in the country. It has cement capacity of 13.5 million ton and power capacity of 560 MW. SCL has manufacturing facilities at Beawar and Ras in Ajmer and Pali district and grinding units at Khushkhera, Suratgarh and Jaipur respectively in Rajasthan and Roorkie in Uttarakhand. SCL boasts of highly recognized brands like Shree Ultra Jung Rodhak, Bangur Cement and Rockstrong. SCL is an ISO 9001, ISO 14001, OHSAS 18001 and SA 8000 certified company and pursues best practices in Manufacturing, Energy Conservation and Environment Management. SCL has received numerous awards and recognitions at national and international levels for Excellence in Energy Management, Environment Management and Corporate Governance practices.

Company’s turnover for 12 months period of April’11-March’12 was Rs 4625 crores. SCL is a consistent dividend paying company (120% dividend for April’11-March’12). SCL commitment to energy efficiency and environment management is reflected in the fact that it set up Waste heat recovery plants of 46 MW which is the largest such capacity in the world cement industry excluding china. SCL commissioned Unit VIII in World Record time of 330 days against average period of 630 days. It enjoys approx 19% market share in North India and is leader in markets of Rajasthan, Delhi and Haryana.

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SCL is a pioneer in adopting and implementing sustainability in business operations. It has recently been nominated as “New Sustainability Champion” by the World Economic Forum. It is first Indian cement company to join Cement Sustainability Initiative of World Business Council for Sustainable Development, Switzerland. It is a member of Cement Sector Task Force of APP7, which is formed by seven Governments of India, USA, China, Japan, Korea, Canada and Australia on Clean development and Climate. It is first Cement Company to register its project under the CDM mechanism with the UNFCCC and was reckoned among 20 best employers in India in a Survey conducted by Business Today Magazine and Mercer TNS.

SCL has invested over Rs. 2000 crores in the last 2.5 years and is further going to invest Rs. 1000 crore in the next one year. Going forward there are several investment plans on the anvil and SCL will continue on its growth and investment drive.

SCL actively promotes Indian culture as reflected in its celebration of its “Shree Sankatmochan Hanuman Mahotsav” function (in honour of Lord Hanuman) each year for the last 11 years. Shobha yatra along with “Jhakis” (Tableaus) is organized which is attended by large number of people from nearby village areas. Internationally and nationally reputed artistes are invited to showcase their art and skills for villagers and local community. This function has acquired status of a mega cultural festival for local community. The magnitude of celebrations is increasing with each year and people look forward to this function in the same way as they do for a religious festival which brings happiness and cheers all around. Apart from this, SCL makes regular contribution towards social developmental activities like AIDS awareness, Education etc. and provide monetary aid towards development of health centres, schools, victims of flood/other tragedies etc.

Looking back at a journey of 26 years, SCL has over the years successfully marched ahead as a loyal partner in the growth of the nation. Company has created enormous value for its stakeholders through generating opportunities for employment, making significant investments in the state and contributed to the vast infrastructure development of the nation. Its splendid voyage through the seas of time has seen its employee strength grow from around 200 employees in 1985 to around 3500 employees at present and its turnover rising from Rs. 28 crores to over Rs. 4500 crores.

The B.G. Bangur family is the principal promoter of Shree Cement. Mr. H. M. Bangur is the

Managing Director while Mr. M. K. Singhi is the current executive director of Shree Cement. It is

located at Beawar, in Ajmer district 185 Kms. from Jaipur off the Delhi-Ahmedabad highway.

2.2 Bangur Cement – SCL’s Premium Brand

Bangur cement started with a vision to be the most effective and efficient cement brand of the

country. As in Bangur cement, SCL aimed at providing the best quality cement that ensures

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customer satisfaction. The Bangur cement is advertised with a tagline saying “The best, not

inexpensive”,(Sasta nahi sabse achha).

To serve the fast growing National Capital Region (NCR) with immediate and prompt services,

Bangur cement is establishing a grinding capacity at Khuskhera in Alwar District of Rajasthan,

which is just 80 kms away from the capital. Excelling in the quality, price, availability and

packaging of the product, SCL aspires to be the first choice of the consumers. The Bangur

cement plant is one of the most modern and sophisticated plants in the India equipped with

state-of-the-art German Technology.

Following factors makes Bangur cement, the SCL’s premium brand:-

Best Quality of Lime Stone: The Ras belt is among the finest quality limestone deposits

in India. Importantly, it is a single source of limestone belt where all necessary

ingredients of cement are available in limestone and there is no dependency on outside

sources, thus enabling consistency in quality.

Better Quality Control, Clinkerisation and superior cement grinding makes the quality of

the brand one of the best in the industry.

State-of-the-art technology: The plant has been set up in the technical collaboration

with internationally acclaimed German cement manufacturer.

In line with its marketing strategy, Bangur cement realized sales predominantly in the trade

segment. The brand contribution to more then 40% of the trade sale of the company,

registering 14.20 Lac MT sales out of the total of 35.92 Lac MT .In fact , trade sales accounted

for 95% of total sales of BANGUR CEMENT while non trade sales was just 5%. BANGUR

CEMENT registered its 55% sales of its total sales in its home market, Rajasthan. By selling

within a smaller radius, the company was able to notch higher net realization because of lower

logistics.

MARKET SHARES: - Rajasthan-9%, Haryana-6%, Delhi-4%.

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2.3 Vision of SCL:-

“To drive and sustain industry leadership of the company within a global context-by developing individual Leadership competencies at every level, through a robust backbone of trust, support, innovation and reward”

2.3 Philosophy of SCL:-

Shree Cement Ltd is a professionally managed company. The company always believes in complete transparency and discharge of the fiduciary responsibilities which has been assumed by Directors as well as by the Senior Management Executives and/or Staff. Therefore in order to ensure the continuity thereof though, not written but otherwise ingrained, the Board of Directors has approved of the following Code of Conduct for all Directors as well as for the Senior Management Executive and/or personnel and other employees.

All the Directors as well as Senior Management Executive and/or Personnel owe to the Company as well as to the shareholders:With the above objects in mind the following code of conduct has been evolved and it is expected that all Directors as well as Senior Management Executives and/or personnel will adhere to it.

GUIDING PRINCIPLES:-

Enforce good corporate governance practices Encourage integrity of conduct Ensure clarity and unambiguity in communication Remain accountable to all stakeholders Encourage socially responsible behavior

2.4 Mission of SCL:-

The mission of the organization is highlighted by the following.

To harness sustainability through low carbon philosophy To sustain its reputation as one of the most efficient manufacturers globally To continually have most engaged team To drive down cost through innovative practices To continually add value to its products and operations meeting expectations of all its

stakeholders

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To continually build and upgrade skills and competencies of its human resource for growth

To be a responsible corporate citizen with total commitment to communities in which it operates and society at large

2.5 SCL manufacturing units:-

Presently Shree Cements has three units. Two units are at Beawer (incorporated in 1979

and1997) and third unit is at Ras (Started in 2005). Fourth unit at Ras has been started in March

2007 and another two units at Ras and Khushkhera near Alwar are also started to enhance the

capacity of the company to 10 mtpa from the present figure of 6 mtpa by the year 2010. The

proximity to Delhi, Jaipur and Haryana, which are the most lucrative markets in the region,

makes it a strategic location.

UNIT-1

Incorporated in 1979.

Put up in 1985.

Cement Production (Expected Production) – 1.20 million tonnes

UNIT-2

Put up in 1997.


UNIT – 3

Incorporated in 2005


UNIT – 4

Incorporated in March 2007

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UNIT - 5

Started in Ras,

Unit – 6

Grinding unit at Kuskhera in Rajasthan.

The growth of company’s market share is going hand in and with its production, supporting its

cyclical business model of produce more-sell more-reinvestment more. Capacity enhancement

at SCL has also been considerable from its 0.6 mtpa in 1985 growing 10 times to 6 mtpa

presently and is projected to touch a figure of 10 mtpa by 2010.

Figure 2.1: Per Annum Capacity Enhancement at SCL.

Source: - www.shreecementltd.com

2.6 Business & Managerial Challenges for SCL

Cement market for SCL is highly competitive with major competitors having advantage of brand

equity, capacity and early movers. The major competitors are Binani, Birla (with products like

Birla Super and Birla Chetak), Grasim (with products like Vikram and Birla Plus), Gujarat Ambuja,

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JK (with products like JK Nimbahera), Laxmi, Mangalam (with products like Mangalam and Birla

Uttam), ACC, DCM Shriram, L & T and Kamdhenu. Each of these players has their dominance

across whole Rajasthan in addition to their respective regional dominance.

Another issue is that the product (cement) cannot be differentiated clearly on the basis of

quality and hence, cost plays one of the most important roles in this industry. If the company

can control cost of manufacturing & distribution, then only would profitability of the company

increase.

Logistics is the most important cost associated with cement industry. This is the single most

important reason for strong dominance of all cement companies in the regions around their

factory. But if this system can be improved upon, and costs can be managed, then Shree

Cements Ltd. can strengthen their hold in present states of distribution as well as look forward

to gaining foothold in newer and farther regions.

2.7 Market of SCL

Each cement manufacturer has a primary and secondary market. The former is one, which is

the closest to the production centre where it fetches the best realizations while the latter is

usually at a distance where realizations are lower.

Table 2.2: Market Classification for Shree Cements Ltd.

Source: - www. Shreecementltd.com

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SCL with a market share of 19% has the second largest market presence in the northern region,

next only to the Gujarat Ambuja Cement and ACC combined. SCL positioning within Rajasthan

(in the north of the state) makes it the closest among all Rajasthan manufacturers to the

lucrative markets of Delhi, Haryana and some parts of Punjab, giving it a significant edge in

transport costs. The other cement units are located further down, at distances ranging from

150- 200 kilometers.

Shree Cements is one of the largest cement companies in North region having existing capacity

of 5.5mn tonnes of cement per annum located in central Rajasthan. The company primarily

caters to Rajasthan, Punjab, Haryana, Delhi and Uttranchal in the Northern region and Uttar

Pradesh in Central region. Rajasthan accounts for approximately 30% of the company's sales

while Delhi and Haryana together account for approximately 40% of sales.

2.8 SCL’s Brands & Products

Shree manufacturing:-

ShreeUltraShree Ultra is our flagship brand, contributing to more than half of our sales volume and is the first manifestation of our strategic move from commodity to brand marketing. Its two variants, Shree Ultra OPC and Shree Ultra Jung Rodhak Cement are distinctly positioned in the market. Shree Ultra Jung Rodhak Cement through its unique rust prevention properties has high acceptance amongst brand influencers (masons etc.) and high brand recall value. The brand, while enhancing its presence in highly educated markets of Delhi has increased. Its reach in the interior markets of Madhya Pradesh, Uttrakhand, Uttar Pradesh and Punjab.

Bangur Cement

Bangur Cement, launched as a premium brand in the market,is designd to meet the high end market segment. Its unique brand tagline "Sasta Nahin, Sabse Achcha", gives it the status of 'top of the market' value brand. It was launched in 2005.

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Rockstrong Cement

Rockstrong Cement is the youngest brand from the Shree stable. It has recorded the highest year on year growth amongst the three brands of Shree in 2009-10. Its holds a position in the market on the promise of high performance and ability to withstand exceptionally harsh environment conditions. Rock strong promotions are carried out through a series of witty hoardings on current topics,

2.9 Strengths of SCL

1.) Low Cost Producer: SCL is one of the lowest cost producers of cement in India. The prime

reasons behind this are captive power plants, use of pet coke in both captive power plant and

kiln and proximity to the markets.

2.) Limestone Reserve: SCL has a total of 700 mn tones of limestone reserve which would be

sufficient to meet its requirements for the next 40 years. Shree Cement's third unit is located at

the pithead of limestone reserve unlike the other two units in Beawar, Rajasthan. Unit IV, which

is expected to be commissioned in FY08, would also be located at the pithead of company's

limestone reserve. As the new plants are located at the pithead of limestone reserve, the raw

material cost per ton of cement is expected to go down as the company would be saving in cost

of transportation.

3.) Captive Power Plants: During FY05, the company sourced 99% of power requirement from

its captive power plant. The company has existing power plant capacity of 42 MW. The

company is installing additional power plant of 18 MW capacities, which would supply power to

its new cement units, thereby ensuring continuation of self sufficiency in terms of power

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requirement. Shree Cement's power usages per ton of cement at 75 Kwh is amongst the lowest

in the industry. The company uses low cost pet coke in both its power plants and kiln. Pet coke

is not only cheaper compared to the imported coke but also has high calorific values thereby

reducing the overall cost.

4.) Strong sales network of 28 sales offices, 1200 dealers and 4000 retailers.

5.) Progressive Management: Shree Cement supplemented its attractively low capital

investment per tonne with one of the lowest manufacturing costs in the Indian cement

industry. The path of sustainable growth has been made possible because of management

strategy of taking triple bottom-line approach of Economic, Environmental and Social

performance listed below:

Figure 2.3: Progressive Management

6.) Mining: Limestone being the predominant raw material, Shree Cement plants are situated

near limestone quarry fields. To minimize the transportation cost, Shree Cements has leased

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two mines one at Beawer and other at Ras with reserves that will last for a long time. The Ras

mines give a limestone of very good quality which is easier to process.

Figure 2.2: SCL Captive Power Generation

2003 2008 2009 2010 2011

power point capacity 60 122 122 145 160

power requirement 47 83 99 107 123

10

30

50

70

90

110

130

150

power point capacitypower requirement

2.10 SCL’s Manpower profile

Well experienced and skilled manpower resources capable of handling both project

implementation and operations.

The skill enhancement is a regular exercise under a well defined training manual.

Company imparts more than 20,000 hours of in-house training to its employees every

year

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Figure 2.5: Manpower profile at SCLbbb

ShriB.G.BangurNon-Executive Chairman

Shri B.G. Bangur is a B.Com (Hons.) from Calcutta University and he brings with him a long experience in the industry. He is also a Director in The Didwana Investment Company Ltd., NBI Industrial Finance Co. Ltd., Shree Capital Services Ltd., Khemka Properties Pvt. Ltd.

ShriH.M.BangurManaging Director

Shri H.M. Bangur is a Chemical Engineer from IIT, Mumbai and he brings to the board technical insights which are a driving force of the technical excellence achieved by the Company. Mr. Bangur is also a Director in The Kamla Co. Ltd.

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ShriR.L.GaggarDirector

Shri R.L. Gaggar is a B.A. (Hons) from Kolkata University and is a renowned solicitor and advocate based in Kolkata. He is practicing as a solicitor and an advocate at the High Court of Kolkata for more than 50 years. Mr. Gaggar is also on the Board of Somany Ceramics .

ShriO.P.SetiaDirector

Shri O.P. Setia is an M.Com from Delhi University and is an eminent banker and Ex-Managing Director of State Bank of India and has held many key positions in its associate banks.

ShriShreekantSomanyDirector

Shri Shreekant Somany is an industrialist who holds a Bachelor of Science degree from Kolkata University and is currently on the Board of Somany Ceramics Ltd., S.R. Continental Ltd., Somany Global Ltd., Cosmo Ferrites Ltd., Sarvottam Vanijya Ltd., Scope Vinimoy Pvt. Ltd.

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Dr.Y.K.AlaghDirector

Dr. Y.K. Alagh is a noted Economist and visiting professor to several renowned national/ international institutions. He holds a Doctoral Degree and Master Degree in Economics from University of Pennsylvania. He is currently the Chancellor of Nagaland University.

ShriNitinDesaiDirector

Shri Nitin Desai is a well known Economist and has had a long and distinguished career in the Govt. of India and United Nations. Shri Desai is Member of Prime Minister's Council on Climate Change which is coordinating the national action for assessment, adaptation and.

ShriM.K.SinghiDirector

Shri M.K. Singhi is a Fellow Chartered Accountant and a Science and Law Graduate. He joined the Company as President in January, 1995 and has 32 years experience of working at senior positions. He is the leader of Indian Cement Sector Task Force for Energy.

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2.11 Key Operational Highlights

The cost of production of the Company is one of the lowest in India

Operating profit margin is highest in World Cement Industry

100% self sufficiency in meeting power requirement

100% self dependent on limestone sourcing

Consistent dividend paying company (2005-06: 50%)

Recognized as one of the most Energy Efficient units in India

Fastest growing cement company in India (capacity more than trebling in 3 years from

26 LTPA in 2004-05 to 95 LTPA in 2008-09)

Strong brand image – Bangur Cement, Shree Ultra Red Oxide Cement and Shree Ultra

Ordinary Portland Cement have high consumer recall. New super premium brand rock

strong produced with German technology has a lot of expectations.

Initiatives for global warming reduction

Pioneered in the application of innovative Electro static precipitator technology in Dg power generation to save fuel and combat pollution, and replaced HSD by LDO.

Achieved unity power factor

In electrical distribution system to reduce maximum demand, and transmission / distribution losses

Partial utilization of waste heat

For 3 MW power generation.

Initiator in the use of pet coke for power generation in India

36 MW captive thermal power plant under commissioning to generate quality power for the plant, avoid transmission and distribution losses, and provide surplus power to Rajas than.

SAVINGS: Rs 496.46 Million pa

Development of DD cones

In house development of deduiling cones cyclones resulting in reduction in pressure drop, higher outputs and lower energy consumption.

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Single roller press for tow Ball Mills

Capacity enhancement & utilization of CM –2 Roller press for capacity increase and energy saving increase CM –1, Energy saving –2.02 KWH / The

Objective, CSI (Cement sustainability initiative)

1. The purpose of the Cement Sustainability Initiative is to:2. Explore what sustainable development means for the participating companies and the

cement industry.3. Identify and facilitate actions that companies can take as a group and individually to

accelerate the move towards sustainable development.4. Provide a framework through which other cement companies can participate, and5. Provide a framework for engaging external stakeholders.

Agenda, CSI

The 10 companies involved in the CSI have chosen to develop an agenda for three reasons:

To prepare for a sustainable future by making a more efficient use of natural resources and energy, and engaging with lock issues increase emerging market To meet the expectations of stakeholders and maintain their ‘license to operate’ increase communities across the world through a greater transparency of operations effective engagement with society and initiating action, which lead to sustained positive changes, and To individually understand and build new market opportunities through process innovation, which achieve greater resource/ energy efficiency and long – term coos savings; product and service innovation to reduce environment impacts and work with other industries on novel uses of – product and waste material in cement production.

The companies have identified six key areas where they believe that the CSI can make a significant contribution towards a more sustainable society:

Climate protection.

Fuels and raw materials.

Employee health and safety.

Emissions reduction.

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Local impacts.

Internal business processes.

Productivity

Shree Cement supplemented its attractively low capital investment per tonne with one of the lowest manufacturing costs in the Indian cement industry.

Timely execution of Unit-III along with better price realization and cost optimization measures made the year a hallmark for the Company:-

The turnover of the Company has more than doubled during the year. The operating profit margin of the Company at 44.84% is highest in the Indian cement

industry. The proportion of blended cement in the total production has increased to 76% in the

current year against 54% in the previous year. Company started use of wet fly ash for producing blended cement which is economical and environment friendly.

The capacity utilization level of the Company further improved during the year from 114% to 116% with Unit-III recording 99% in its very first full year of operation. This compares well with the all India average of 94%.

Continued thrust on improving energy consumption levels has brought down power and fuel consumption as under:

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Although Power consumption for the year indicates marginal increase during the year, the unit-wise consumption has gone down from last year. The Reduction in energy consumption with increasing production base has significantly contributed to cost efficiency of the Company.

Dynamic and efficient logistic management practices have enabled Company to contain increase in freight cost in spite of rising diesel prices and loading restrictions on trucks. Company has made optimal use of its in-house railway sidings facility with appropriate route plan to limit freight cost.

The Company's marketing strategy of maintaining multiple brands competing with each other with a view to garner increased market share has yield good returns. As a result, Company has retained market leadership status in Rajasthan and Delhi.

“Jung Rodhak” brand has further strengthened its presence in its segment in the North India market.

“Bangur Cement” launched last year in the premium quality segment, has been well received in the market and has been improving its market share. Its marketing strategy of appointment of Business associates and Business partners has enabled the Company to keep its debtors levels at zero and minimizing the Working Capital requirement.

Company has introduced another premium quality brand “rockstrong cement”. The new brand has started attracting customer’s attention and is getting good response.

The proportion of trade sale to total sale increased during the year from 66% to 74% showing higher customer recall and satisfaction.

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The Company continued with its highest credit rating of PR1+ for its short-term debt and AA for its long-term debt enabling containment of its cost of funds despite large borrowing requirements for its capital expenditure programme.

The interest cost has been kept at a low level in the rising interest rate environment through optimal utilization of funds and judicious mix of rupee and fully hedged foreign currency borrowings.

Timely execution of projects is a hallmark of the Company. The 1.5 MTPA capacity expansion with captive power plant of 18 x 3 MW completed in Feb 08 has been achieved well within the targets both time and budget.

During the year Company has undertaken implementation of an “Enterprise Resource Planning” (ERP) Project with Oracle E-Business Suite to manage its expanding business operations. ERP Project shall help it in improving its business matrices by process optimization, improving logistics and integration across disciplines. The project is operated in FY 2008-09.

Table 2.3: SCL Key Figures

Source: - www.marketresearch.com

2.12 Recognition and Awards

• Whitehopleman UK - International Cement Consultants have consistently maintained 4 star

rating for Shree since 2000 (No one in the world has been assigned a 5 star rating!!)

• Excellence in Energy Management Award 2006 from Confederation of Indian Industry for the

second time

27

• National Awards for Energy Conservation and Best Thermal and Electrical Energy from

Ministry of Power, Govt of India

• National Safety Awards by Ministry of Labour, Govt. of India

• ICWAI National award 2005 for excellence in cost management

• Golden Peacock Award-2006 &2008 in recognition of its excellent Environment Management

practices

2.13 SCL vis-à-vis Competitors

SCL has been omnipresent in the performance with various achievements within a short period

of time. Following figures suggests that it has been doing the best job among its peers in terms

of high capacity utilization, low power consumption, low power generation cost, and low fuel

consumption ratio.

Table 2.4: SCL figures vis-à-vis competitors

Source:- www. Shreecementltd.com

It has also been encountering the lowest Variable Cost in its peer group because of its constant

efforts in saving cost of power and fuel consumption which is not only the lowest but is approx.

75% of the average of other players. Freight and selling expenses of for SCL is also the lowest

amongst all.

28

Table 2.5: SCL’s Variable Cost Comparison with others:-

Source:- www.shreecementltd.com

SCL’s ability to produce cement with lowest power consumption and other low costs of

production and raw material procurement has resulted into the top EBITDA Margin figures for

29

Figure 2.6: Power Cost Comparison


Figure 2.7: EBITDA Margin Comparison

Source: - www.shreecementltd.com

30

2.14 Information Technology at SCL

SCL has embraced Information Technology in a big manner and made investments to establish

strong IT infrastructure:

• IT Policy & Quality Standards: SCL has clearly defined IT policy. Backup and Disaster

Recovery Policy, SCL Internet/Network Access Policy and Business Continuity Plans have been

endorsed and religiously implemented.

• ‘SUMriddhi’ - Shree Enterprise Resource Planning: The Shree ERP programme, christened

‘SUMriddhi’, was developed deploying Oracle 9i RDBMS and Developer 2000 platform. A

comprehensive ERP program was designed to integrate all functional modules, namely Financial

Accounting & Costing (FA), Material Management (MM), Personnel and Payroll (PP), Laboratory

and Quality Control, Integrated Management System (IMS) and Raw Material Procurement

(RMP) with the objective to make operations online. The company expects to implement ERP

‘live’ across the organization in 2004-05.

• Online operations of Sales and Distribution: Company successfully implemented the

computerization of its sales and distribution functions by integrating all branches/dealers

through a secured connectivity with the plant for online order processing. In the second phase,

necessary enhancements will make the system work in a centralized manner using dedicated

and secure Virtual Private Network (VPN) across its branch/dealer network.

• SCL’s IT Infrastructure: The Company has a scalable, state-of-the-art IT network

infrastructure, with optic fiber cable-based gigabit backbone, high-end layer 3 switches, Cisco

routers and IBM corporate-computing servers. Shree has a secure network across its corporate

and site locations with e-trust firewall supplemented with intrusion detection system and

Active Virus Defense Solution from Network Associates. The organization is provided with the

latest computing tools in hardware and software.

• SCL’s corporate website: The Company launched its content-exhaustive corporate website

shreecement.com on 1 August 2003. The portal is dynamic, informative and user-friendly with a

31

menu-driven interface. The website contains the latest information about the company with

news flashes and a photo gallery. The website is e-commerce enabled, which provides access to

customers on their latest account statement and vendors/ suppliers on order positions for the

e-procurement program.

• E-Procurement: Shree implemented an e-procurement programmed to facilitate purchases

through the reverse auction process to maximize price benefits and transparency.

• Paperless office: Shree is moving towards the ultimate goal of achieving a paperless office

environment through a widespread use of e-mails and instant messaging for daily

communication across all its offices. A program was undertaken for storing and cataloguing the

huge archive of blueprints of technical drawings in a digitized form for instant accessibility.

• Raw material procurement: The entire raw material procurement operation was integrated

with ‘SUMriddhi’ - Shree ERP, to increase efficiency and control.

• Training: Shree is committed to enhance the IT skills of not only employees across all

functions but their family members as well. As a result, training is an ongoing process and more

than 200 personnel were imparted training across departments.

• Online Knowledge management: Shree has launched a platform for sharing knowledge across

the enterprise. A knowledge management tool was developed and implemented through which

people across all levels can contribute and share achievements, domain expertise, social and

cultural ideas. This also provides a ‘public folder’ for up-to-date information on the cement

industry and the company.

• Network Security: SCL network is protected by the high end e-Trust Firewall from Computer

Associates and Network Associates Intrusion Detection System (IDS). SCL has implemented

Network Associates Active Virus Defense for virus protection and SPAM control. All network

resources are protected by adopting strong password policies. SCL has enforced three-layer

security for all data and information systems.

32

2.16 COMPARISON OF POTENTIALITY

OF VARIOUS CEMENT BRANDS

COMPARISON OF POTENTIALITY OF VARIOUS CEMENT BRANDS IN RAJASTHAN

BRAND NAME SALES (IN MATRIC TONES)

AMBUJA 121000

ULTRA-TACH 145000

BINANI 103000

BANGUR 55000

SHREE ULTRA 100000

TUFF CEMENTO 40000

J.K.LAXMI 83000

ACC 17000

MANGLAM 40000

BIRLA CHETAK 81000

J.K.SUPER 65000

SHREE RAM 6000


COMPARISON OF POTENTIALITY OF VARIOUS CEMENT BRANDS IN RAJASTHAN (IN TRADE)

BRAND NAME SALES (IN MATRIC TONES)

JAIPUR DISTRICT JAIPUR LOCAL

AMBUJA 25000 17000

ULTRA-TACH 26000 14000

33

BINANI 12000 10000

BANGUR 6500 4000

SHREE ULTRA 8500 7500

TUFF CEMENTO 4500 3000

J.K.LAXMI 7500 5500

ACC 4500 3000

BIRLA UTTAM 4000 3000

BIRLA CHETAK 5000 3000

J.K.SUPER 6500 5000

Source:- www.ibef.org

34

PART 2

2.1 INUSTRY OVERVIEW

2.2 CEMENT INDUSTRY IN INDIA

Cement industry is a capital intensive and cyclical industry. The demand for cement is linked to

economic activity, can be categorized into two segments, household construction and

infrastructure creation.

The Indian Cement Industry today is the second largest in capacity and production with an

installed capacity of around 157 mtpa after China. The Indian Industry charted a fast track

growth of around 10% per year on an average during the last decade. Demand has shown an

upward surge in recent times buoyed by housing sector, infrastructure development, and

increase in capital expenditure by corporate and growing retail sector. The cement demand in

the country is expected to grow at an annual rate of 8% for the next five years.

The Indian cement industry is a mixture of mini and large capacity cement plants, ranging in

unit capacity per kiln as low as 10 tonnes per day (tpd) to as high as 7500 tpd. Majority of the

production of cement in the country (94%) is by large plants, which are defined as plants having

capacity of more than 600 tpd.

The Industry faces several bottlenecks in high cost of inputs like fuel and power, high taxes and

duties and transportation cost. More than 70% of the input cost in cement manufacture is

beyond the control of the industry and is administered by regulatory authorities. These include

royalties and cess on limestone, tariff for coal, rail transport and power, duties on finished

goods, namely, central excise, local sales tax, octroi, etc.

The only areas where industry can induce cost controls and economy are reduction in

consumption of inputs like fuel and power through energy efficiency, improved productivity

35

through planned maintenance and reduction of stoppages, etc. The continuous efforts by the

industry in these areas have brought in good results. It is noteworthy that the energy

consumption by the most efficient cement plants in India at the level of 665 Kcal per kg of

clinker and 69 kWh per tonne of cement are comparable with the best achieved in the world.

2.3 Major Players in Indian Cement Industry:

Domestic players:

1.) ACC Limited

2.) Ambuja Cements Limited

3.) Birla Corporation Limited

4.) UltraTech Cement

5.) Binani Cement

6.) Shree Cements Limited

7.) India Cements

8.) J K Cement

9.) Grasim

10.) Jaypee Group

11.) Madras Cements

12.) Century Textiles

Major foreign players:

1.) Holcim

2.) Lafarge

3.) Italcementi

36

2.4 PROCESS TECHNOLOGY

2.4.1 Raw Materials for Cement Production

Cement is usually used in mortar or concrete. Here it is mixed with inert material (called

aggregate), like sand and coarse rock. Portland cement consists of compounds of lime mixed

with oxides like silica, alumina and iron oxide.

There are three major raw materials for cement:

1.) Limestone

Limestone is the main raw material and is the source of calcium carbonate. Calcium carbonate

is burnt to obtain calcium oxide (CaO). The other sources of calcium carbonate are marl, chalk,

seashell and coral reef. Limestone is the most abundant source of CaO. The other user

industries for limestone are iron & steel, fertilizer and chemicals. Cement is the biggest

limestone user.

India accounting for over 75-80% of limestone produced in India. The composition of limestone

used by the various sectors varies. For cement, the CaO content of limestone should be a

minimum of 44%. Typically, 1.4-1.5 tonnes of limestone are required per tonne of clinker. Thus,

for a 1 million tonne cement plant, assured availability of cement grade limestone reserves of

the order of 50-60 mt in the close vicinity is important.

2.) Gypsum

Gypsum is used as a retarding agent. Ground clinker, on contact with water, tends to set

instantaneously because of the very fast reaction between tri-calcium aluminates and water. In

the presence of gypsum, the desired setting time can be achieved. Gypsum is added to the

extent of 5% during the clinker grinding stage. Gypsum is naturally available in abundance in

Rajasthan, Gujarat and Tamilnadu.

3.) Granulated Blast Furnace Slag (GBFS) and Fly Ash

37

The other raw materials that are also used in the manufacture of cement are blast furnace slag

(a waste product obtained from iron-smelting furnaces) and fly ash (leftover ash from a thermal

power station). Limestone contains about 52% of lime and about 80% of this lime is lost during

ignition of the raw materials. Similarly, Clay contributes about 57% silica of which about 25% is

lost during ignition. GBFS is obtained by granulation of slag obtained as a by-product during the

manufacture of steel. It is a complex calcium aluminum silicate and has latent hydraulic

properties. That is why it is used in the manufacture of Portland blast furnace slag cement.

2.5 PROCESS

2.5.1 Stages of Cement Production

There are seven stages of cement production at a cement plant:

1. Procurement of raw materials

2. Raw Milling - preparation of raw materials for the pyroprocessing system

3. Pyroprocessing - pyroprocessing raw materials to form cement clinker

4. Cooling of cement clinker

5. Storage of cement clinker

6. Finish Milling

7. Packing and loading

38

Figure 2.1: Cement manufacturing from the quarrying of limestone to the bagging of cement

While adding fresh capacities, the cement manufacturers are very conscious of the technology

used. In cement production, raw materials preparation involves primary and secondary

crushing of the quarried material, drying the material (for use in the dry process) or undertaking

a further raw grinding through either wet or dry processes, and blending the materials.

Clinker production is the most energy-intensive step, accounting for about 80% of the energy

used in cement production. Produced by burning a mixture of materials, mainly limestone,

silicon oxides, aluminum, and iron oxides, clinker is made by one of two production processes:

wet or dry; these terms refer to the grinding processes although other configurations and

mixed forms (semi-wet, semi-dry) exist for both types.

In the dry process, the raw materials are ground, mixed, and fed into the kiln in their dry state.

In the wet process, the crushed and proportioned materials are ground with water, mixed, and

fed into the kiln in the form of slurry.

The choice among different processes is dictated by the characteristics and availability of raw

materials. For example, a wet process may be necessary for raw materials with high moisture

39

content (greater than 15%) or for certain chalks and alloys that can best be processed as a

slurry. The dry process is the more modern and energy-efficient configuration. In general, the

dry process is much more energy efficient than the wet process, and the semi-wet somewhat

more energy efficient than the semi-dry process. The semi-dry process has never played an

important role in Indian cement production and accounts for less than 0.2% of total production.

In 1960, around 94% of the cement plants in India used wet process kilns. These kilns have been

phased out over the past 46 years and at present, 96.3% of the kilns are dry process, 3% are

wet, and only 1% are semidry process. Dry process kilns are typically larger, with capacities in

India ranging from 300- 8,000 tonnes per day or tpd (average of 2,880 tpd). While capacities in

semi-dry kilns do range from 600-1,200 tpd (average 521 tpd), capacities in wet process kilns

range from 200-750 tpd (average 425 tpd).

Over the last decade, increased preference is being given to the energy efficient dry process

technology so as to obtain a cost advantage in a competitive market. Moreover, since the

initiation of the decontrol process, many manufactures have switched over from the wet

technology to the dry technology by making suitable modifications in their plants. Due to new,

even more efficient technologies, the wet process is expected to be completely phased out in

the near future. Due to the dominant use of carbon intensive fuels such as coal in clinker

making, the cement industry has been a major source of carbon dioxide (CO2) emissions.

Besides energy consumption, the clinker making process also emits CO2 due to the calcining

process.

2.6 TYPES OF CEMENT

There are different varieties of cement based on different compositions according to specific

end uses, namely, Ordinary Portland Cement, Portland Pozzolana Cement, White Cement,

Portland Blast Furnace Slag Cement and Specialised Cement

The basic difference lies in the percentage of clinker used.

1.) Ordinary Portland cement (OPC):

40

OPC, popularly known as grey cement, has 95 per cent clinker and 5 per cent gypsum and other

materials. It accounts for 70 per cent of the total consumption.

2.) Portland Pozzolana Cement (PPC):

PPC has 80 per cent clinker, 15 per cent Pozzolana and 5 per cent gypsum and accounts for 18

per cent of the total cement consumption. It is manufactured because it uses fly ash/burnt

clay/coal waste as the main ingredient.

3.) White Cement:

White cement is basically OPC - clinker using fuel oil (instead of coal) with iron oxide content

below 0.4 per cent to ensure whiteness. A special cooling technique is used in its production. It

is used to enhance aesthetic value in tiles and flooring. White cement is much more expensive

than grey cement.

4.) Portland Blast Furnace Slag Cement (PBFSC):

PBFSC consists of 45 per cent clinker, 50 per cent blast furnace slag and 5 per cent gypsum and

accounts for 10 per cent of the total cement consumed. It has a heat of hydration even lower

than PPC and is generally used in the construction of dams and similar massive constructions.

5.) Specialised Cement:

Oil Well Cement is made from clinker with special additives to prevent any porosity.

6.) Rapid Hardening Portland cement:

Rapid Hardening Portland Cement is similar to OPC, except that it is ground much finer, so that

on casting, the compressible strength increases rapidly.

7.) Water Proof Cement:

Water Proof Cement is similar to OPC, with a small portion of calcium stearate or non-

saponifiable oil to impart waterproofing properties.

41

In India, the different types of cement are manufactured using dry, semi-dry, and wet

processes. In the production of Clinker Cement, a lot of energy is required. It is produced by

using materials such as limestone, iron oxides, aluminium, and silicon oxides. Among the

different kinds of cement produced in India, Portland Pozzolana Cement, Ordinary Portland

Cement, and Portland Blast Furnace Slag Cement are the most important because they account

for around 99% of the total cement production in India.

The Portland variety of cement is the most common one among the types of cement in India

and is produced from gypsum and clinker. The Ordinary Portland cement and Portland Blast

Furnace Slag Cement are used mostly in the construction of airports and bridges. The

production of white cement in the country is very less for it is very expensive in comparison to

grey cement. In India, while cement is usually utilized for decorative purposes, marble

foundation work, and to fill up the gaps between tiles of ceramic and marble.

The different types of cement in India have registered an increase in production in the last few

years. Efforts must be made by the cement industry in India and the government of India to

ensure that the cement industry continues innovation and research to come up with more and

more varieties in the near future.

2.7 SCALE OF OPERATIONS

The cement industry has witnessed a significant change in the scale of operations. In 1961, the

largest kiln in operation had a capacity of 750 tpd. In 1970, of the total 119 kilns, 1 had over

1,000 tpd capacity, with 55 having less than 400 tpd capacity. In 1980, 11 of the total 141 kilns

were over the 1000 tpd mark, with 1 kiln having a capacity larger than 3,000 tpd (roughly 1

mtpa). The 1990s saw still higher capacity 4500-5000 tpd (or 1.5 mtpa) kilns. The recent

practice for a large size plant is to have 6,500-7,000 tpd (or 2.5 mtpa) capacity.

2.7.1 Industrial production:

42

The cement industry is enhancing its production levels as new homes and offices are being

built, and in keeping with the economy’s annual growth rate. According to the Cement

Manufacturers Association, the overall cement production rose by 8.11 per cent during 2009-10

to 188.32 million tonnes (mt) as against 155.66 mt in 2006-07.

Table 2.1 : Statistics

Cément (million tonnes)

2007-2008 2009-2010

(Apr-Mar)

(a) Production 168.31 188.32

(b)Dispatches (Including Export)

167.67 182.39

(c) Export 5.89 6.54

(d) Cap. Uti. (%) 94 96

Source: Cement Manufacturers’ Association

PRODUCTION SITES OF VARIOUS BRANDS OF CEMENT

BRAND NAME PRODUCTION SITE

Shree Beawer Distt. Ajmer

Bangur Rass Distt. Pali. Jetaran

Rockstrong Rass Distt. Pali. Jetaran

Ambuja Rabriyawas Distt. Pali. Jeteran

43

Binani Pindwada Distt. Sirohi

Ultra Tack Shambhupura Distt. Chittorgarh

Birla Chetak Chittorgarh

Birla Uttam Modak Distt. Kota

J.K. Laxmi Banas Distt.Sirohi

J.K. Super Nimbaheda Distt. Chittorgarh

ACC Lakheri, Distt. Bundi

The export of Indian cement has increased over the years, giving a boost to the Indian cement

industry. The demand for cement in the foreign countries is a derived demand, for it depends

on industrial activity, real estate, and construction activity. The cement industry in India has

around 300 mini cement plants and 130 large cement plants. The total production capacity of

these plants is around 167.36 million tons. The India cement industry is technologically very

advanced, as a result of which the quality of Indian cement is now considered the second best

in the world. This has given a major boost to the Indian export of cement. The production of

cement in India is not only able to meet the domestic demand, but large amounts are also

exported. A fair amount of clinker and cement by-products are also exported by India. As the

quality of Indian cement is very good, its demand in the international market is always high.

In 2001-2002, 3.38 million tons of cement was exported from India. That figure stood at 3.47

million tons in 2002-03, and 3.36 million tons in 2003-04. In 2001-2002, 1.76 million tons of

clinker was exported from India. In 2002- 2003 clinker exports amounted to 3.45 million tons,

44

and in 2003- 2004 the figure stood at 5.64 million tons. This shows that the export of Indian

cement has been increasing at a steady pace over the years. Export of India cement has been

mostly to the West Asian countries.

The major companies exporting Indian cement are:

• Gujarat Ambuja

• Ultra Tech Cement

• Aditya Cement

Export of Indian cement has registered growth a fair amount of growth, giving a boost to the

Indian economy. That it continues to rise, more efforts must be made by the cement industry in

India and the government of India.

The types of cement in India have increased over the years with the advancement in research,

development, and technology. The Indian cement industry is witnessing a boom as a result of

which the production of different kinds of cement in India has also increased.

By a fair estimate, there are around 11 different types of cement that are being produced in

India. The production of all these cement varieties is according to the specifications of the BIS.

2.8 GROTH OF CEMENT INDUSTRY:-

India is the world's second largest producer of cement with total capacity of 224 million tonnes

(MT) as on April 30, 2010, according to the Cement Manufacture’s Association.

During May 2010, the cement production touched 14.50 MT as compared to 13.28 MT in May

2009. The cement dispatches quantity was 14.21 MT in May 2010 over 13.06 MT in the

corresponding month.

Moreover, the government's continued thrust on infrastructure will help the key building

material to maintain an annual growth of 9-10 per cent in 2010, according to India's largest

cement company, ACC.

45

In January 2010, rating agency Fitch predicted that the country will add about 50 million tonne

cement capacity in 2010, taking the total to around 300 million tonne.

Further, speaking at the Green Cementech 2010, a seminar jointly organized by the

Confederation of Indian Industry (CII) and the Cement Manufacturer's Association in Hyderabad

in May 2010, G Jayaraman, Executive President, Birla Corporation Ltd, said that in 2009, 40 MT

of capacity was added and he expects a similar trend to follow this year.

Cement and gypsum products have received cumulative foreign direct investment (FDI)

of US$ 1708.69 million between April 2000 and March 2010, according to the

Department of Industrial Policy and Promotion.

Madras Cements Ltd is planning to invest US$ 178.4 million to increase the

manufacturing capacity of its Ariyalur plant in Tamil Nadu to 4.5 MT from 2 MT by April

2011.

Surya Group plans to invest US$ 873.3 million in a new 5 million MT cement plan to be

set up in Gujarat.

My Home Industries Limited (MHI), a 50:50 joint venture (JV) between the Hyderabad-

based My Home Group and Ireland's building material major CRH Plc, plans to scale up

its cement production capacity from the existing 5 million tonne per annum (mtpa) to

15 mtpa by 2016. The company would undertake this capacity expansion at a cost of

US$ 1 billion.

Shree Cement, plans to invest US$ 97.13 million this year to set up a 1.5 million MT

clinker and grinding unit in Rajasthan. Moreover, in June 2010, Shree Cement signed a

memorandum of understanding (MoU) with the Karnataka government to invest US$

423.6 million for setting up a cement unit and a power plant. US$ 317.7 million will be

used to set up a cement manufacturing unit with an annual capacity of 3 mtpa while the

balance will be for the 100 mega watt power plant.

Jaiprakash Associates plans to invest US$ 640 million to increase its cement capacity.

Swiss cement company Holcim plans to invest US$ 1 billion in setting up 2-3 Greenfield

manufacturing plants in the country in the next five years to serve the rising domestic

46

demand. Holcim is present in the country through ACC and Ambuja Cements and holds

around 46 per cent stake in each company. While ACC operates 16 cement plants,

Ambuja Cements controls five plants in India. The Aditya Birla group is the largest

cement-making group by capacity in the country and controls Grasim Industries and

Ultratech Cement.

KKR- Dalmia Cement signed a deal worth US$ 159.57 million in May 2010.

French cement company Vicat acquired a 51 per cent stake in Bharathi Cement

Company Ltd, promoted by Y S Jagan Mohan Reddy, Member of Parliament, to tap the

southern markets, which represent 40 per cent of the total Indian cement market.

2.9 POLICY INITIATIVES

FDI Policy: the cement sector has been gradually liberalized. 100 per cent FDI is now permitted

in the cement industry.

2.10FUTURE OUTLOOK

Considering an expected production and consumption growth of 9 to 10 per cent, the demand-

supply position of the cement industry is expected to improve from 2008-09 onwards, resulting

in an expected price stabilization. The cement industry is poised to add 111 million tones of

annual capacity by the end of 2012-13 (FY 10), riding on the back of an estimated 141

outstanding cement projects.

2.11 SIGNIFICANT CONSOLIDATIONS

As discussed earlier in this report, the cement industry is witnessing a number of Mergers &

Acquisitions (M&As). The extent of concentration in the industry has increased over the years.

47

This concentration is mainly because of the focus of the larger and the more efficient units to

consolidate their operations by restructuring their business and taking over relatively weaker

units. The relatively smaller and weaker units are finding it difficult to withstand the cyclical

pressure of the cement industry.

Some of the key benefits accruing to the acquiring companies from these acquisition deals

include:

Economies of scale resulting from the larger size of operations

Savings in the time and cost required to set up a new unit

Access to new markets

Access to special facilities / features of the acquired company

Benefits of tax shelter.

The relative market share of large players in the cement industry has changed significantly over

the years. Consolidation of capacities has seen UltraTech, Grasim, India Cement and Gujarat

Ambuja emerging as the leading players in India apart from ACC, which has been the market

leader during all the years excepting FY2001. All the players have resorted to a combination of

Greenfield capacities as well as takeover of existing capacities for growth.

Some examples of the consolidation witnessed among domestic players in the recent past

include:

Gujarat Ambuja taking a stake of 14 per cent in ACC

Gujarat Ambuja taking over DLF Cements and Modi Cement.

ACC taking over IDCOL

India Cement taking over Raasi Cement and Sri Vishnu Cement

Grasim's acquisition of the cement business of L&T

Grasim taking over Indian Rayon's cement division.

Grasim taking over Sri Digvijay Cements.

L&T taking over Narmada Cement.

1.11 Competitor & Environment Analysis

48

PORTER’S MODEL

PART: - 3

3.1 Research Methodology

The research methodology is the way systematically solves the research problems. The main

49

objective of the product was to know the market condition of Lafarge Cement and to study the

sales promotion activities undertaken by various cement companies. For this, right at the

beginning the research plan was prepared. This includes all the detail of how to go about

research work of BANGUR Cement.

Title of the Study

“A Survey on Cement Industry to know about brand awareness and perception about bangur

cement”

Duration of the Project

Project duration is 45 days.

3.1.1 Objective of the Study

This project was undertaken for four main objectives was

To carry out market survey for knowing prevailing brand awareness and perception of

bangur Cement, in Rajasthan (Rajasthan).

To study the sales and promotion activities undertaken by bangur cement and other

player in the market.

To analyze the transportation facilities for bangur cement and other cement companies.

To analyze the frequency of visit of marketing representative of various companies.

Thus it attempt to find ways to increase market share, to increase customer awareness and thus

increase the business prospects.

3.1.2 AREA COVERED

Any study that is conducted has a scope. The scope here signifies the geographical limits within which the study will be carried discrepancies in the study due to a large number of extraneous variables in the area.

50

The market survey was conducted on the retailers, dealers, sub-dealers, builders of cement brands to measure the most potential brand in jaipur territory.

The study was under BANGUR BRANDS in jaipur. The geographical scope of my study was limited to the area of jaipur territory where by different area were covered.

Mansarovar

Jagatpura

Pratap Nagar

vaishali Nagar

C-scheme

Vidhyadhar Nagar

Sirsi road

Sitapura

Saganer

Tonk phatak

Kalawar road

Jhotwada

22 godam

Sodala

Hawa sadak

Goshala Jawahar circle

3.1.3 Type of Research

(A) Research Objective

51

Major:

To find out the brand awareness and perception of consumers in jaipur City.

To find out the position of bangur cement in jaipur city.

Minor:

To find out brand equity about bangur cement and its market share.

RESEARCH INSTRUMENTATS

The Research instrument chosen for conducting the survey was structured questionnaire

was prepared as show as in the annexure. The questionnaire includes open ended as well

as close ended question, few open ended question were included to obtain the perception

of the retailers. The questionnaire designed and a pilot survey was made with the

questionnaire and then changes were made accordingly with the questionnaire.

(B) Methodology

For this purpose both primary data and secondary data were used.

1) PRIMARY DATA

It is those data, which are collected fresh and first time, and they happen to be original in

characteristics. This may be done by either surveying and asking person to survey or going in

the field and collecting data. This type of data is more confidential and chance or error is

minimized. In this project surveying the retailers is the source of collecting primary data. The

normal procedure is to conduct personal interview and telephonic interview for primary data. A

primary survey was conducted at jaipur city

2) SECONDARY DATA

It those data which are already collected by someone else and which have already been past

through the statistical process, secondary data provide the starting point research and offer the

advantage of low cost and ready availability.

52

3.1.4 DATA COLLECTION

The descriptive nature of research necessitates collection of primary data from retailers

through market survey, personal interview technique was used and interview were conducted

through structured questionnaire the question were asked in prearranged manner. The market

research was conducted over a period of 45 days. Data was tabulated, analyzed and suggestion

and recommendation were given.

CONTACT METHOD

Mostly personal and sometimes telephonic interview methods were used for conducting the

market survey. Personal interview had the benefit one to one communication between the

researcher and the respondent. If the respondent is having any doubt or queries in their mind,

they can get their doubts clarified from the researcher on the spot and so superior of data was

collected from the survey was collected from the survey.

Tele – interview was conducted with the structured questionnaire. Tele-interview was less

costly and less time consuming but the data could not be collected in detail from the

respondents. Also any doubt or queries of respondent could not be clarified.

Data Collection Method (Secondary)

Previous records of company.

From various commercial magazines, books, articles, internet.

Research Approach

Survey with structured schedule at different areas of jaipur city.

Random visits to retailers.

SAMPLE PLAN

A sampling technique was chosen for the study was Random Sampling Technique. This is

the most common method of selecting the sample. This is because the retailers are

localized in different part of the marker a group of retailers are chosen are random from

53

large group. It gives all retailers in a group and equal chance of being selected for the purpose

of the survey.

Research Methodology

Research design - Exploratory research design

Sampling planning universe- jaipur

Total Response - 200 Retailers, dealers, builders

Data collected instrument - Questionnaire

Data collected method - Personal interview method which in the

form of a questionnaire

3.1.5 SAMPLE SIZE

Out of nearly 200 retailers, dealers, builders in cement market of jaipur around randomly

70% of total population was considered as the sample size.

Scope of the study

1. The study has been done for the Cement so more or less it helps in understanding the

consumer preference towards the cement market.

2. The study can help in analyzing certain weak point, improving on which a company can

overcome the low sales of its cement.

Limitations of study

1. Some dealers & Retailers are not ready to give any information to me.

I have no authorization to tell the dealers & Retailers that I am coming. I have completed my

vocational training programmed at Bangur cement under wonderful environment and learn

things very much there. But to complete my vocational training, some limitations/difficulties I

have to face they are :-

54

1. Lack of cooperation from the retailers in regard to giving interview.

2. It was found in some cases dealers showed inclination towards certain brands which

gave them more margins when compared to others.

3. It was experienced during the survey that it was difficult to convince or make the

retailers and dealers understand the important of the project.

As the retailers and dealers thought that it was unwise for them to give their details of business

as they feared competitors would take advantage of this.

3.1.6 DATA ANALYS

Q.1 Name the current cement brands you are aware of?

AWARENESS

55

AWARENESS0

20

40

60

80

100 90 85 85 80 80

65

40 4030 30 30

AMBUJA ULTRA-TECH BINANI BANGUR

SHREE ULTRA TUFF CEMENTO J.K.LAXMI ACC

BIRLA UTTAM BIRLA CHETAK J.K.SUPER

During the period of survey we interviewed 200 entrepreneurs doing small and big business in respect to cement, we come to know that out of the total 200:

90% of the people are highly aware of Ambuja.

85% of the people are aware of Ultra-tech & Binani.

80% of the people are aware of Bangur & Shree Ultra.

65% of the people are aware of rockstrong.

40% of the people are aware of ACC & J.K.Laxmi.

30% of the people are aware of Birla Uttam & Birla Chetak & J.K.Super.

Q.2 Name of the company of the brand you are aware of?

56

AWARENESS0

20

40

60

8080

7060 55

80

5040 40

20 20 20

AMBUJA - AMBUJA ULTRA-TECH - ADITYA BIRLA GROUPBINANI - BRAJ BINANI GROUPBANGUR - SHREE CEMENT LTD.SHREE ULTRA - SHREE CEMENT LTD.TUFF CEMENTO - SHREE CEMENT LTD.J.K.LAXMI - J.K.GROUPACC - ACCBIRLA UTTAM - B.K.BIRLA GROUPBIRLA CHETAK - M.P.BIRLA GROUPJ.K.SUPER - J.K.GROUP

During the period of survey we interviewed 200 entrepreneurs doing small and big business in respect to cement, we come to know that out of the total 200:

80% of the people are highly aware of Ambuja – Ambuja & Shree Ultra – Shree Cement Ltd.

70% of the people are aware of Ultra-tech – Aditya Birla Group.

60% of the people are aware of Bangur - Shree Cement Ltd.

50% of the people are aware of rockstrong – Shree Cement Ltd.

40% of the people are aware of ACC - ACC & J.K. LaxmI -J.K.Group.

30% of the people are aware of Birla Uttam – B. K. Birla Group & Birla Chetak – M.P. Birla Group & J.K. Super – J.K. Group.

Q.3 Name the brands you deal with?

57

DEALING

DEALING0

10

20

30

40

50 40

50

40

30

20

10 105 5 5 5




In respect of dealing with cement brand, we found that out of the total 200 respondents: -

50%of the people are dealing with ultra-tech.

40%of the people are dealing with Ambuja & Binani

30%of the people are dealing with Bangur.

20%of the people are dealing with Shree Ultra

10%of the people are dealing with rockstrong & J.K. Laxmi.

5%of the people are dealing with ACC, Birla Uttam, and Birla Chetak, J.K. super.

Q.4 You are authorized dealer of ?

AUTHORISED DEALER

58

AUTHORIZED DEALER05

10152025

15

25

15

510 10

5 4 2 2 2




From the following 200 respondents, it was analyzed that authorized dealer pertaining to various cement brands have been distributed as follows: -

25 Authorized dealer of Ultra-tech.

15 Authorized dealers of Ambuja & Binani.

10 Authorized dealer of Shree Ultra & rockstong.

5 Authorized dealer of Bangur & J.K. Laxmi.

4 Authorized dealer of ACC.

2 Authorized dealer of Birla Uttam, Birla Chetak & J.K. Supers.

Q.5 Rank the following brands in quality terms:

59

QUALITY0

10

20

30

40

50

6055

45 45

20

10 105 4 4 4 4


SHREE ULTRA J.K.LAXMI ACC BIRLA UTTAM

BIRLA CHETAK J.K.SUPER

Also, In respect of quality of products it was observed that:

According to 55% people, of Ambuja is excellent.

Around 45% People told that quality of Ultra-tech & Binani is very good.

Around 20% of people told that quality of Bangur is very good.

10% people told that quality of Shree Ultra & rockstrong is good.

5&4% J.K. Laxmi, ACC, Birla Uttam, Birla Chetak & J.K. Super is average.

Q.6 Have you seen the TV advertisement of cement brand’s?

60

TV ADVERTISMENT

TV (ADVERTISEMENT)0

20406080

10090

70

45 45

2030

205 5 5 5




90% of the people had seen the TV advertisement of Ambuja.

70% of the people had seen the TV advertisement of Ultra-tech.

45% of the people had seen the TV advertisement of Bangur & Binani.

20% of the people had seen the TV advertisement of Shree Ultra & J.K. Laxmi.

30% of the people had seen the TV advertisement of rockstrong.

5% of the people had seen the TV advertisement of Birla Uttam & Birla Chetak, J.K.Super & ACC.

Q.7 Rank the following brands in price terms:

61

PRICE 'A'0

10203040506070

70

35 35

7 7 7 7 2 2 2 2




Also, In respect of PRICE of products it was observed that:

According to 70% people told that price of Ambuja is very high price than other brands.

Around 35% People told that price of Ultra-tech & Binani is very high.

Around 7% of people told that price of Bangur Shree Ultra & rockstrong, J.K. Laxmi is high.

2% of the people told that price of ACC, Birla Uttam, and Birla Chetak & J.K. Super is high.

3.2.4 FINDINGS

AWARENESS

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Ambuja, Ultra-Tech, Binani, Bangur & Shree Ultra are highly aware brand in jaipur city.

Rockstrong, J.K. Laxmi, Birla Uttam, Birla chetak, J.K. Super & ACC are also reasonable awared.

AWARENESS OF COMPANY WITH BRANDS

Ambuja, Ultra-Tech, Binani, Bangur & Shree Ultra & rockstong are highly aware of brand with company in jaipur city.

J.K. Laxmi, Birla Uttam Birla chetak, J.K. Super & ACC are also reasonable awared.

DEALING

Maximum dealers are dealing with Ambuja, Ultra-Tech, and Binani.

Mainly dealers are dealing with multiple brands.

Retailers having good sale are authorized dealer of a company.

QUALITY

Ambuja, Ultra-Tech & Binani are considered to be best quality product.

Shree Ultra, Bangur, J.K. Laxmi, Birla Uttam Birla chetak, J.K. Super & ACC are also among good perception about quality.

PRICE

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Ambuja, Ultra-Tech & Binani are considered to be best price product in the market (higher price than other product).

Shree Ultra, Bangur, J.K. Laxmi, Birla Uttam Birla chetak, J.K. Super & ACC are also normal price in the market.

MARKET RESEARCH

MARKETING RESEARCH

Marketing research in the systematic gathering, recording and analyzing of data about problems connected with the market place i.e. H.P’s in order to find justified solutions for the problem.

IMPORTANCE

Consumer oriented marketing.

Effective managerial decision.

Identification of opportunities.

Reduces risk.

Stimulates sales.

Assessment of real image of company.

Integrating the company and consumer interest.

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3.2 CLASSIFICATION OF MARKETING REASEARCH

1. Research on consumer

Studying consumer tastes, reactions and brand preference.

Customer satisfaction study

2. Research on market Study on market size / potential / market growth.

Study on market segment.

Detailed market surveys.

3. Research on distribution: Measuring dealer reaction to the company and its products and services.

Distribution cost Analysis.

4. Research on advertising effectiveness. Studies on advertising effectiveness.

Studies on media.

Assessing and effectiveness and ad impact.

Studies on sales promotion effectiveness.

3.2.1 PROCESS OF MARKETING RESEARCH

PROBLEM FORMULATION

65

DETERMINATION OF

RESEARCH OBJECTIVE

PLANNING AND CONDUCT

FORMAL INVESTIGATION

COLLECTION OF PRIMARY DATA

DATA PROCESSING

ANALYSIS AND INTERPRETATION

REPORT WRITING

FOLLOW UP

PART-4

QUESTIONNAIRE

66

QUESTIONNAIRE

Name of shop _____________________________

Owner of Shop ____________________________Address ______________________________

Dealership _______________________________

Q.1 Name the current cement brands you are aware of?

(A) Ambuja (B) Ultra-tech

(C) Binani (D) Bangur

(E) Shree Ultra (F) Rockstrong

(G) J.K.Laxmi (H) ACC

(I) Birla Uttam

Q.2 Name of the company of the brand you are aware of?

(A) Ambuja (Ambuja)

(B) Aditya Birla Group (Ultra-tech)

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(C) Barj Binani Group (Binani)

(D) Shree Cement Ltd (Bangur)

(E) Shree Cement Ltd (Shree Ultra)

(F) Shree Cement Ltd (Rockstrong)

(G) J.K. Group (J.K.Laxmi)

(H) ACC (ACC)

(I) B.K. Birla Group (Birla Uttam)

(J) M.P. Birla Group (Birla Chetak)

(K) J.K. Group (J.K. Super)

Q.3 Name the brands you deal with?





(I) Birla Uttam

Q.4 You are authorized dealer of?



68



(I) Birla Uttam (J) Birla Chetak

(K) J.K.Super

Q.5 Rank the following brands in quality terms:





(I) Birla Uttam (J) Birla Chetak

(K) J.K.Super

Q.6 Have you seen the TV advertisement of cement brand’s?




(G) J.K.Laxmi (H) ACC(I) Birla Uttam (J) Birla Chetak

Q.7 Rank the following brands in price term:-


69



(G) J.K.Laxmi (H) ACC(I) Birla Uttam (J) Birla Chetak

(K) J.K.Super

DEALERS / SUBDEALERS/RETAILERS REPORT:-

70

S NO.

NAME OF FIRM WITH ADDRESS NAME OF OWNER

DEALER /SUBDEALER

SALE (P/M) BRAND

1 MAIHTA BUILDING MATERIAL & SUPPLAIR (SIRSI ROAD)

MAHESH JI RETAILER

2000BAGE

SHRI ULTRA & JK LAXMI

2 RAKESH BUILDING MATERIAL & SUPPLAIR (MEENA WALA

SHIRSHI ROAD)

RAKESH JI DEALER 3000BAGE BIRLA UTTAM

3 JANU SALES CORPORATION (MEENA WALA SHIRSHI ROAD)

JADGISH JI DEALER 3000BAGE JK LAXMI

4 CHANDN BULDING MATERIAL & SUPPLAIR (MEENA WALA

SHIRSHI ROAD)

GYARASHI LAL SHARMA

SUBDEALER 800 BAGE ULTRA-TECH & AMBUJA

5 SHARMA BUILDING MATERIAL (MEENA WALA SHIRSHI ROAD)

RAKESH JI RETAILER 900BAGE ULTRA-TECH

6 BAGDA BUILDING MATERIAL (PACHAWALA SHIRSHI ROAD)

PARBHU JI BAGDA

RETAILER 1000BAGE ULTRA-TECH

7 GAYATRI BUILDAING MATERIAL & SUPPLAIR (PACHAWALA

SHIRSHI ROAD)

YOGESH JI GUPTA

SUBDEALER 2000BAGE BANGUR & AMBUJA &

BINANI

8 BALAJI SALES CORPORATION (PACHAWALA SHIRSHI ROAD)

PRALAD JI SHARAMA

RETAILER 1000BAGE BIRLA UTTAM

&ULTRA-TECH

&SHREE ULTRA

9 BAGDA BUILDING MATERIAL (PACHAWALA SHIRSHI ROAD)

RAMGOPAL JI BAGDA

DEALER 2000BAGE ULTRA-TECH&

BANGUR&BINANI

71

10 KATAREYA BUILDING MATERIAL (PACHAWALA SHIRSHI ROAD)

RAM KARAN JI KATAREYA

SUBDEALER 900BAGE ULTRA-TECH

11 KHANDELWAL TRADERS (NIWARU ROAD 200 BY PASS)

SHYAM KHANDLAWAL

DEALER 3000BAGE AMBUJA

12 ANIL TRADERS (LAXMI NAGAR NIWARU ROAD JHOTWARA)

ANIL JI DEALER 9000BAGE ULTRA-TECH

13 SHREE MAHA LAXMI TRADERS (NEAR BY PASS KALWAR ROAD

KANTA)

SUBHAS JI AGRAWAL

DEALER 1000BAGE BANGUR CEMENT

14 PUJA BUILDING MATERIAL SAGANER ROAD GOUSHALA

PAPU JI RETAILER 300BAGE JK LAXMI & AMBUJA

15 AGRAWAL TRADERS (A 26 HEERA BADI NIWARU ROAD

JHOTWARA)

KISHAN KUMAR SHARMA

DEALER 2500BAGE ULTRA-TECH

16 RAJDHANI BUILDING MATERIAL SAGANER ROAD GOUSHALA

SHYAM LAL SHENI

SUBDEALER 700BAGE AMBUJA

17 LAXMI CEMENT AGENCY

SAGANER ROAD GOUSHALA

RAMKISHOR SHENI

DEALER 3500BAGE AMBUJA &ULTRA-TECH& JK

18 TRILOK BUILDING MATERIAL SONPATH, MANSAROVAR

BABULAL SHENI SUBDEALER 800BAGE AMBUJA & JK

19 LAXMI BUILDING MATERIAL SONPATH, MANSAROVAR

ANIL GOYAL DEALER 8000BAGE AMBUJA

20 SHENI SALES CORPORATION (MADHYAM

MARG,MANSAROVAR)

GOVIND RAM DEALER 2000BAGE BINANI & JK WHITE

21 MUNA TRADERS (MADHAYAM MARG, MANSAROVAR)

MUNA BHAI DEALER 400BAGE AMBUJA

72

22 GARIB TRADERS (VIJAY PATH, MANSAROVAR)

HASHIM BHAI RETAILER 500BAGE AMBUJA

23 GOVIND STONE BUILDING (TONK PHATAK, TONK ROAD )

LALU LAL &GOVIND

SUBDEALER 2500BAGE AMBUJA

24 BALAJI TRADERS (TONK PHATAK,TONK ROAD)

BHAWATI PARSAD

DEALER 3000BAGE ACC & ULTRA-TECH

25 CHANTAHARAN BUILDING MATERIAL (TONK PHATAK,

TONK ROAD)

SHIV KUMAR SUBDEALER 2000BAGE AMBUJA BIRLA WHITE

26 GOVIND TRADERS (SHOP NO.7, TONK PHATAK, TONK ROAD)

DINESH KUMAR SUBDEALER 1800BAGE ULTRA-TECH & AMBUJA

27 SHREE SHYAM TRADING COMPANY (GATTA KE PAS,

TONK ROAD)

SUNILGUPTA DEALER 3000BAGE BANGUR & ULTRA-TECH

& SHREE ULTRA

28 SHREE RAM TRADERS (GATTA KE PAS, TONK ROAD)

VINEY SHARMA SUBDEALER 2000BAGE BANGUR &AMBUJA

29 MACHIWAL AGENCYS (NEAR TO GOPALPURA BYPAS,TONK

ROAD)

JUGAL KISHOR MACHIWAL


30 VINAYAK CEMENT (NEAR TO GOPALPURA BYPAS TONK

ROAD)

DEEPAK DEALER 2000BAGE BANGUR &AMBUJA

31 JAIN TRADERS (MAHAVIR NAGAR, TONK ROAD)

DOLAT SINGH DEALER 1700BAGE ROCK-STRONG

32 JOYTI TRADING COMPANY (MAHAVIR NAGAR, TONK

ROAD)

GOPAL CHODHYRI

SUBDEALER 1000BAGE ULTRA-TECH

73

33 BALAJI TRADERS (MAHAVIR NAGAR, TONK ROAD)

MAHANDRA SINGH


34 SHREE LAXMI CEMENT AGENCY (AJMER ROAD NEAR 200 FIT BY

PASS)

RAM LAL KUMAWAT

DEALER 7000BAGE AMBUJA

35 BHARAT TRADING COMPANY (AJMER ROAD)

HARPHOOL SINGH

DEALER 2000BAGE AAC

36 SHREE LAXMI CEMENT BUIED PLAZA (AJMER ROAD NEAR 200

FIT BY PASS)

LAXMI NARAYAN DEALER 7000BAGE ULTRA-TECH

37 SHREE LAXMI CEMENT SUPPLAIRS (AJMER ROAD

OPP.TO BRIDGE)

SAGAR MAL DEALER 2000BAGE

SHREE ULTRA,

BANGUR CEMENT

38 SHREE RAM CEMENT AGENCY (AJMER ROAD, DCM MARKET)

OM PRAKASH SUBDEALER 2000BAGE ULTRA-TECH & J.K.LAXMI

39 AASIWAL AGENCY (AJMER ROAD BHAKROTA)

RAJESH SUBDEALER 1500BAGE ULTRA-TECH & BINANI

40 SHIV TRADERS (AJMER ROAD BHAKROTA)

RAKESH JI DEALER 2500BAGE J.K.LAXMI

41 RAJENDER TRADERS (AJMER ROAD)

RAJENDER JI DEALER 3000BAGE ULTRA-TECH

42 PARDEEP TRADERS (AJMER ROAD)

JUGAL KISHOR SUBDEALER 1500BAGE AMBUJA & ULTRA-TECH

43 SAKHAWAT BUILDING MATERIAL ( MURLIPURA

AJMER ROAD)

GERIRAJ SINGH DEALER 4000BAGE ULTRA-TECH

44 NIRANIYA TRADERS (SODALA) ASHOK NIRANIYA SUBDEALER 2000BAGE ULTRA-TECH

74

& J.K.LAXMI & AMBUJA

45 NAVEEN TRADING COMPANY (SODALA)

RAJ KUMAR SUBDEALER 1700BAGE ULTRA-TECH & J.K.LAXMI & AMBUJA

46 RAMA AGENCY (SODALA) VINOD SINGH SUBDEALER 2000BAGE AMBUJA & ULTRA-TECH

47 GODEALA TRADING COMPANY (SODALA)

BADRI PARSAD DEALER 6000BAGE BINANI

48 DEEPAK MARBALS (KALWAR ROAD 200FIT BY PASS)

DEEPAK RETAILER 1000BAGE AMBUJA

49 KIRAN SUPPLAIRS (KALWAR ROAD KATA PHANKA)

SANGRAM SINGH

DEALER 3000BAGE ACC ULTRA-TECH

50 SEAKAWATY CEMENT UDAEG (KALWAR ROAD KATA PHANKA)

JAY SINGH DEALER 2000BAGE ULTRA-TECH

51 R.K. TRADERS (KALWAR ROAD KATA PHANKA)

RAM KUMAR DEALER 2000BAGE ULTRA-TECH

52 ANKIT TRADING COMPANY (KALWAR ROAD KATA PHANKA)

AHKASH SUBDEALER 1000BAGE ULTRA-TECH

53 GNAESH STONECOMPANY (KALWAR ROAD KATA PHANKA)

OM JI RETAILER 800BAGE J.K.LAXMI

54 H S CORPORATION&BUILDING MATERIAL (KALWAR ROAD

KATA PHANKA)

HANUMAN SHAYE

DEALER 2500BAGE SHREE ULTRA

55 MANISH TRADERS (SUBIKISHA MOBILE STORE KALWAR ROAD

JHOTWARA)

SITA RAM JI SUBDEALER 2100BAGE ULTRA-TECH

56 MAHALAXMI SALES P.K.SINGH DEALER 3000BAGE ULTRA-TECH

75

CORPORATION (MEDICALCENTER KALWAR

ROADJHOTWARA)

57 BAJARNG BUILDING MATERIAL (KEARDHANI NAGAR KALWAR

ROAD)

BAJARNG LAL RETAILER 700BAGE ULTRA-TECH

58 JAGDAMBA TRADING COMPANY (SUBIKISHA MOBILE

STORE KALWAR ROAD)

MOHAN LAL DEALER 2000BAGE ULTRA-TECH

59 KUMAWAT TRADING COMPANY (KALWAR ROAD KATA PHANKA)

S.N.KUMAWAT DEALER 2000BAGE ULTRA-TECH

60 VESAVEKARMASTON SUPPLAIRS (GOVINDPURA KALWAR ROAD)

CHOOTMAL DEALER 1700BAGE

ULTRA-TECH, BINANI

CEMENT, SHRI ULTRA

61 VIJAYBUILDING MATERIAL (RAVANGAT KALWAR ROAD)

SURESH DEALER 3000BAGE ULTRA-TECH

62 KARDANI CEMENT UDUGH (SURJEET NAGAR KALWAR

ROAD)

BASIDHAR KUMAWAT

DEALER 2000BAGE

ULTRATECH

63 YADAV SALES CORPORATION (KEARDHANI NAGAR KALWAR

ROAD)

GANAGARAM JI DEALER 2500BAGE BINANI

64 SANGEETA STONE (KEARDHANI NAGAR KALWAR ROAD)

SANJAY DEALER 1500BAGE J.K.LAXMI

65 MARWAL STONE SUPPLAIRS (CHANDR NAGAR KEARDHANI

KALWAR ROAD)

HANUMAN JI DEALER 2000BAGE ACC

66 GOVIND BUILDING MATERIAL (TAKYA KI CHOOKI BAJARNG

GOVINDRAM DEALER 2000BAGE ULTRA-TECH

76

DAWAR KALWAR ROAD)

67 GURU KRIPA BUILDING MATERIAL (KEARDHANI NAGAR

KALWAR ROAD)

LAXMI NARAYAN DEALER 2000BAGE

AMBUJA, BIRLA

SAMRAT68 SIANI BUILDING MATERIAL

(SIRSI ROAD)JAGDISH PARSAD RETAILER 500BAGE J.K.LAXMI

PART – 5

5.1 CONCLUSIONS

Brand Awareness and Perception

Awareness and Perception are the two key metrics that any company would use to measure their brand strength.

77

Awareness in simple terms - how many people know my brand? Usually, awareness is measured through a survey that asks participants a series of questions for example “What brand comes to your mind if you want to buy shoes? In general, companies measure unaided awareness- what % of survey participants mentioned the brand without any kind of hint. For top brands like Coke, McDonalds the awareness will be close to 100%.Perception is the values consumers attach to a brand. For example, perception for Volvo will be safety. To measure perception of a car company, survey will have questions like “How do you rank car brands in terms of safety? And various questions will be asked on quality, performance, or green. Outcome of the survey reveal the brand perception. List of questions depends on what is goal for the brand and how you want customers to think of your brand.Studies have shown that awareness and perception plays a big role in the market share of a product. What is important? Awareness or perception? For a growing company (trend) like Twitter, awareness would be the prime driver to grow the product usage. As more people are aware of micro blogging and Twitter, more people would use Twitter. Hence % of awareness level would decide Twitter’s growth and penetration among online population. On the other hand, for a mature business segment like ’cars’, awareness may not be the major driver of market share. Close to 100% of people might be aware of BMW but many would not buy BMW cars. Hence perception matters the most for BMW. Not only the stage of company and industry, other factors such as type of product, level of competition, switching cost, risk of switching also drive the importance of awareness vs. perception.Generally, it takes at least frequency of 5-6 ads through various mass media to gain 1% increase in awareness among population. Cost for such a campaign will be close to $100M. Since consumers are constantly bombarded with huge number of ads, new products and brands, cost for gaining awareness is constantly going up. Given the high cost involved in conventional mass media, small startups leverage non conventional and inexpensive media like Twitter, Facebook, Blogs, and YouTube to generate brand awareness and perception. Most importantly, companies leverage current user base to generate awareness and perception. Facebook and Twitter effectively used their user base to increase awareness. Services like Facebook are useful to consumers only when more people use the service. Hence users inherently have an incentive to popularize the service. For any company to be successful in the future, its product or service should have some way to provide an incentive for the users to recommend the product to others.

So this is exactly same for the cement industry. For making good profit margin and good sales a company must have the great awareness and good perception in consumers mind. To complete

78

this purpose we did the survey for Bangur cement and find out the all main following conclusion:-

To attain the objective of the project detailed information was collected from the

market of jaipur. The market research has revealed many facts and figures about

the cement scenario in the market prevailing.

In the market, Bangur cement is well known brand of cement. This is the result of the

good quality of the Bangur cement along with their effective marketing efforts, which

covers the whole market customers of Bangur cement are highly satisfied with the use

of it, as they do not face any problem after using it.

Bangur has two major competitors- in trade business ambuja cement and ultra tech

cement, while in nontrade it has the competition with j.k. super and binani.

Bagur is well established in the markets as far as quality is concerned.

Introduction of new attractive incentive schemes can bring new dealers & retailers for

bangur cement.

Price is the major factor that matters for a customer while purchasing cement

Market share can increases with the increase in no. of dealers.

The market survey undertaken shows that effective marketing efforts play a vital role

in creating the goodwill for the brand. The distribution channel of cement industry

must be well designed and made effective this ensures timely availability of cement to

customers. Good marketing creates good image i.e. brand awareness and brand

perception.

Quality and Brand image of the cement brands are having a significant relationship with

one another. This is an important factor because good quality helps in building the loyal

customers due to which demand of that brand increases and dealers have to go with the

brand whose demand is more.

5.2 RECOMMENDATIONS

79

Based upon the time spent by me in the market, useful suggestions of the dealers & retailers

and the findings from the survey, following recommendations can be suggested for increasing

sales and effectiveness of Bangur Cement:

First of all, Bangur has to show its presence in the market not in the terms of dealers but

should also reach to the customers via different means. Mason meets and Dealer meets

should be organized in every two months (stress should be laid in rural areas, where

brand visibility is very low). Along with mason and dealer meets, company can also go

for customer meets, telling about the quality of the product and explaining them why

they should choose SCL’S Brands. Advertisement is another medium to reach to the

customers; effective medium should be adopted for the same.

Company can adopt the strategy of making exclusive dealers, by providing them extra

benefits. This will help them to reduce competition. As in the case of multi brand

dealers, dealer tend to sale only those brand which gives high profit margin.

There should be control on the price variation. Due to this, image of being a premium

brand is diluted and we no longer are considered as premium brand.

One of the main reasons of price variation is the secondary freight benefit being

provided to the dealers. Companies carry the “Trolla Movement” to give benefit to their

dealers. Also, other two brands of Shree Cement Limited give the same benefit.

Therefore, Bangur has also started giving the same benefit to counter the competitors

move.

I strongly support this type of benefits should not be there which adversely affects the

brand image. Instead we can give other benefits to the dealers may be in form of Gold

schemes or more margin in achieving target sales.

Another threat is from in-house competition. Company management should take

adequate steps to reduce this competition and should aim to build the brand image,

rather than to have high collective sales.

When the price of cement increases, the company does not provide cement at short

antic time is the general grievance of our dealer's as the competitors companies inform

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their dealer's about the incepted price like and book orders on the previous prices. The

same must be done by us also because of this our dealers will earn more profit and be

interested more to sale our brand in the market.

The company should initiate dealers/retailer schemes based on monthly target dealers

for better sales.

The company must fine the price of cement lags to be charged by its dealers for retailers

as well as customers. Direct sale to consumer by the company dealer's must be not at

the similar an which it sold to a retailer in the area. This will caret more interest among

its retailers and will be able to create more sales in the market.

The company must organize mesons meeting in different regions to familiarize them

with Bangur cement.

On interviewing Dealers/Retailers the most important thing they said was about

the price flexibility, they want that the company should give them the price flexibility

to play in the market. (As the company has outlined that the price offered by the

company should only be offered to the customer, it should not increased to the

customer, it should not be increased or decreased).

What matters for most of the cement buyers is the price of the cement and then the

quality. While visiting market for cement purchase, they don’t care about which brand

they are going to buy. They simply know that X is ongoing price of the cement, if any

brand costs higher than X, they will not buy that brand. Bangur Cement usually costs 4-5

Rs. Higher than the other counterparts. So the buyers, too much extant not interested in

buying bangur cement. This extra price is the main reason behind lower sales.

Therefore, Bangur need to take some serious steps to reduce the selling price somehow.

POSSIBLE ADVERTISEMENT METHODS

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All of the cement brands use the similar methods of advertising like- painting walls, use

banners, giving free gifts to the dealers and masons etc.There are still many possible methods

of advertisement and creating brand awareness, which are untouched. Some of these methods

are as below:

Local cable T.V. can be used for advertising as well as to give details about the major

dealer/dealers in the city. Details like address, contact no. of the dealer, different

schemes, current market price etc can be shown.

Local F.M. stations of jaipur are also reaching a good part of listeners. So these can also

be used for the same purpose.

Banners, paintings are used mainly on the tractor trolleys, dealer’s shop and on walls

only. We can think about using banners on rickshaws, autos and buses also.

Different type of incentive schemes, free gifts are mainly for dealers and sometimes for

the masons. As a change, we can also try to attract the customers directly. For ex-

discount coupons, small free gifts, scratch cards etc can be made available for the

customers.

A number of meetings are organized by all the cement companies with the local

masons. Most of the masons are very less educated. They attend many meetings. So it

may become difficult for them to recognize a particular cement brand. What we can do

in this case is to take help of Advertising i.e. we need to put the Bangur logo on the

hands of these masons. So that next time they saw this logo, they found themselves a

bit familiar with the company.

The ‘masons meet’ are organized by the company regularly. This needs some

improvements. We need to decrease the frequency of these meets. What we can do is

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that organize a big meet with a no. of people, higher company officials, entertainment,

and snacks for all. The presence of company officials in the meeting is not alone

sufficient. We need to call some big personalities from that city only. The people like

these masons are more impressed by the presence of Govt.officials.

5.3 BIBLIOGRAPHY

Following are sources, which helped me during my summer training:

BOOKS:

KOTHARI C.R.: Research methodology management, 3rd Edition

KOTLER PHILIP: Marketing management” 12th edition, 2007

S.P.GUPTA: - Statistical Methods “Thirteen Revised Edition, 2001

MAGZINES:

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INDIA TODAY

BUSINESS WORLD

REFERENCES

www.shreecementltd.com www.ibef.org www.marketresearch.com www.indianinfoline.com www.busineessconnect.com www.indiancementindustry.com

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http://www.indiancementindustry.com/

http://www.busineessconnect.com/

http://www.indianinfoline.com/

http://www.marketresearch.com/

http://www.ibef.org/

http://www.shreecementltd.com/

Summer Training Project Report of Bangur Cement 3

Documents

pachawala shirshi road

senior management executives

senior management executive

bagda building material

ordinary portland cement

ajmer road bhakrota

cement sustainability initiative

captive power plant