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.

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, Im 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

-: CONTENTS:S.NO PARTICULAR PAGE NO. 6-9 10-

EXCUTIVE SUMARY
1.

INTRODUCTION
Company Overview Bangur Cement- Scls Premium Brand Vision of SCL Philosophy of SCL Mission of SCL SCL Manufacturing units Business & managerial challenges for SCL Market of SCL SCLs Brand & Products Strengths of SCL SCLs Manpower profile Key Operational Highlights Recognition and Awards SCL vis--vis Competitors Information Technology at SCL Comparison between various cement brands

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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

 3.

Scale of Operations

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. 6. 7.

CONCLUSION RECOMMENDATION BIBLIOGRAPHY

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. 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 dont 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 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 its 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.

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. Companys turnover for 12 months period of April11-March12 was Rs 4625 crores. SCL is a consistent dividend paying company (120% dividend for April11 -March12). 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. 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 SCLs Premium Brand
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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 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 SCLs 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

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To continually add value to its products and operations meeting expectations of all its stakeholders 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. Cement Production (Expected Production) 2.10 million tonnes UNIT 3 Incorporated in 2005 Cement Production (Expected Production) 1.50 million tonnes UNIT 4

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Incorporated in March 2007 Cement Production (Expected Production) 1.50 million tonnes UNIT - 5 Started in Ras, Unit 6 Grinding unit at Kuskhera in Rajasthan. The growth of companys 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

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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, 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.

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Source: - www. Shreecementltd.com 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 SCLs Brands & Products Shree manufacturing:ShreeUltra Shree 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

160 140 120 100 80 60 40 20 0

power point capacity power requirement 2003 60 47 2008 122 83 2009 122 99 2010 145 107 2011 160 123

power point capacity power requirement

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

ShriShreekantSomany Director 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.Alagh Director 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.

ShriNitinDesai Director 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.Singhi Director 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, and 5. 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 unitwise 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 customers 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

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 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--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--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.

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Table 2.5: SCLs Variable Cost Comparison with others:-

Source:- www.shreecementltd.com SCLs 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

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Figure 2.6: Power Cost Comparison

Source:- www.shreecementltd.com Figure 2.7: EBITDA Margin Comparison

Source: - www.shreecementltd.com

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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. SCLs 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. SCLs 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.

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2.16 COMPARISON OF POTENTIALITY OF VARIOUS CEMENT BRANDS COMPARISON OF POTENTIALITY OF VARIOUS CEMENT BRANDS IN RAJASTHAN

BRAND NAME AMBUJA ULTRA-TACH BINANI BANGUR SHREE ULTRA TUFF CEMENTO J.K.LAXMI ACC MANGLAM BIRLA CHETAK J.K.SUPER SHREE RAM

SALES (IN MATRIC TONES) 121000 145000 103000 55000 100000 40000 83000 17000 40000 81000 65000 6000

Source:- www.shreecementltd.com COMPARISON OF POTENTIALITY OF VARIOUS CEMENT BRANDS IN RAJASTHAN (IN TRADE) BRAND NAME SALES (IN MATRIC TONES) JAIPUR DISTRICT AMBUJA ULTRA-TACH 25000 26000 JAIPUR LOCAL 17000 14000

33

BINANI BANGUR SHREE ULTRA TUFF CEMENTO J.K.LAXMI ACC BIRLA UTTAM BIRLA CHETAK J.K.SUPER

12000 6500 8500 4500 7500 4500 4000 5000 6500

10000 4000 7500 3000 5500 3000 3000 3000 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 nonsaponifiable 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 economys 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 Cment (million tonnes) 2007-2008 (Apr-Mar) (a) (b) (c) (d) Production Dispatches (Including Export) Export Cap. Uti. (%) 168.31 167.67 5.89 94 188.32 182.39 6.54 96 2009-2010

Source: Cement Manufacturers Association PRODUCTION SITES OF VARIOUS BRANDS OF CEMENT BRAND NAME Shree Bangur Rockstrong Ambuja PRODUCTION SITE Beawer Distt. Ajmer Rass Distt. Pali. Jetaran Rass Distt. Pali. Jetaran Rabriyawas Distt. Pali. Jeteran

43

Binani Ultra Tack Birla Chetak Birla Uttam J.K. Laxmi J.K. Super ACC

Pindwada Distt. Sirohi Shambhupura Distt. Chittorgarh Chittorgarh Modak Distt. Kota Banas Distt.Sirohi Nimbaheda Distt. Chittorgarh 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

44

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

45

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. 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 Hyderabadbased 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

46

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 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 demandsupply 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.

47

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. 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

48

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 PORTERS MODEL

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PART: - 3
3.1 Research

Methodology

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

50

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. 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

51

Jawahar circle

3.1.3 Type of Research (A) Research Objective 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

52

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. 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.

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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 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 200 Retailers, dealers, builders Questionnaire 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.

Total Response Data collected instrument Data collected method

54

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 :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.

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3.1.6 DATA ANALYS Q.1 Name the current cement brands you are aware of? AWARENESS

100 80 60 40 20 0

90 85 85 80 80 65 40 40 30 30 30

AWARENESS
AMBUJA BANGUR J.K.LAXMI BIRLA CHETAK ULTRA-TECH SHREE ULTRA ACC J.K.SUPER BINANI TUFF CEMENTO BIRLA UTTAM

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.

56

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

80 80 60 40 20 0

70

80 60 55 50

40 40
20 20 20

AWARENESS
AMBUJA ULTRA-TECH BINANI BANGUR SHREE ULTRA TUFF CEMENTO J.K.LAXMI ACC BIRLA UTTAM BIRLA CHETAK J.K.SUPER AMBUJA ADITYA BIRLA GROUP BRAJ BINANI GROUP SHREE CEMENT LTD. SHREE CEMENT LTD. SHREE CEMENT LTD. J.K.GROUP ACC B.K.BIRLA GROUP M.P.BIRLA GROUP 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 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. Shree Cement

57

Q.3 Name the brands you deal with?

DEALING 60 40 50 40 30 20 20 0 DEALING
AMBUJA BANGUR J.K.LAXMI BIRLA CHETAK ULTRA-TECH SHREE ULTRA ACC J.K.SUPER BINANI TUFF CEMENTO BIRLA UTTAM

40

10 10

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.

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Q.4 You are authorized dealer of ? AUTHORISED DEALER

25 25 20 15 10 5 0 15 15 10 10 5 5 4 2 2 2

AUTHORIZED DEALER
AMBUJA BANGUR J.K.LAXMI BIRLA CHETAK ULTRA-TECH SHREE ULTRA ACC J.K.SUPER BINANI TUFF CEMENTO BIRLA UTTAM

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.

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Q.5 Rank the following brands in quality terms:

60 40

55 45 45

20 20 0 QUALITY
AMBUJA BANGUR ACC J.K.SUPER ULTRA-TECH SHREE ULTRA BIRLA UTTAM BINANI J.K.LAXMI BIRLA CHETAK

10 10

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.

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Q.6 Have you seen the TV advertisement of cement brands?

TV ADVERTISMENT

100

90 70 45 45 30

50

20

20 5 5 5 5

0 TV (ADVERTISEMENT)
AMBUJA BANGUR J.K.LAXMI BIRLA CHETAK ULTRA-TECH SHREE ULTRA ACC J.K.SUPER BINANI TUFF CEMENTO BIRLA UTTAM

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.

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Q.7 Rank the following brands in price terms:

80 60 40 20 0

70 35 35 7 7 7 7 2 2 2 2

PRICE 'A'
AMBUJA BANGUR J.K.LAXMI BIRLA CHETAK ULTRA-TECH SHREE ULTRA ACC J.K.SUPER BINANI TUFF CEMENTO BIRLA UTTAM

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.

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3.2.4 FINDINGS AWARENESS

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.

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PRICE 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.Ps 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

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PROBLEM FORMULATION

DETERMINATION OF RESEARCH OBJECTIVE

PLANNING AND CONDUCT FORMAL INVESTIGATION

COLLECTION OF PRIMARY DATA

DATA PROCESSING ANALYSIS AND INTERPRETATION

REPORT WRITING

FOLLOW UP

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PART-4 QUESTIONNAIRE
QUESTIONNAIRE

Name of shop _____________________________

Owner of Shop ____________________________ Address ______________________________

Dealership _______________________________

Q.1 Name the current cement brands you are aware of? (A) (C) (E) (G) Ambuja Binani Shree Ultra J.K.Laxmi (B) (D) (F) (H) Ultra-tech Bangur Rockstrong ACC

(I)

Birla Uttam

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Q.2 Name of the company of the brand you are aware of? (A) Ambuja (Ambuja) (B) Aditya Birla Group (Ultra-tech) (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? (A) (C) (E) (G) Ambuja Binani Shree Ultra J.K.Laxmi (B) (D) (F) (H) Ultra-tech Bangur Rockstrong ACC

(I)

Birla Uttam

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Q.4 You are authorized dealer of? (A) (C) (E) (G) Ambuja Binani Shree Ultra J.K.Laxmi (B) (D) (F) (H) Ultra-tech Bangur Rockstrong ACC

(I) (K)

Birla Uttam J.K.Super

(J)

Birla Chetak

Q.5 Rank the following brands in quality terms:

(A) (C) (E) (G)

Ambuja Binani Shree Ultra J.K.Laxmi

(B) (D) (F) (H)

Ultra-tech Bangur Rockstrong ACC

(I) (K)

Birla Uttam J.K.Super

(J)

Birla Chetak

Q.6 Have you seen the TV advertisement of cement brands? (A) (C) (E) (G) (I) Ambuja Binani Shree Ultra J.K.Laxmi Birla Uttam (B) (D) (F) (H) (J) Ultra-tech Bangur Rockstrong ACC Birla Chetak

69

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

(A) (C) (E) (G) (I) (K)

Ambuja Binani Shree Ultra J.K.Laxmi Birla Uttam J.K.Super

(B) (D) (F) (H) (J)

Ultra-tech Bangur Rockstrong ACC Birla Chetak

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DEALERS / SUBDEALERS/RETAILERS REPORT:-

S NAME OF FIRM WITH ADDRESS NO. 1 MAIHTA BUILDING MATERIAL & SUPPLAIR (SIRSI ROAD) 2 RAKESH BUILDING MATERIAL & SUPPLAIR (MEENA WALA SHIRSHI ROAD) 3 JANU SALES CORPORATION (MEENA WALA SHIRSHI ROAD)

NAME OF OWNER MAHESH JI

DEALER SALE (P/M) /SUBDEALER RETAILER 2000BAGE

BRAND

SHRI ULTRA & JK LAXMI BIRLA UTTAM

RAKESH JI

DEALER

3000BAGE

JADGISH JI

DEALER

3000BAGE

JK LAXMI

4 CHANDN BULDING MATERIAL & GYARASHI LAL SUPPLAIR (MEENA WALA SHARMA SHIRSHI ROAD) 5 SHARMA BUILDING MATERIAL (MEENA WALA SHIRSHI ROAD) BAGDA BUILDING MATERIAL (PACHAWALA SHIRSHI ROAD) RAKESH JI

SUBDEALER

800 BAGE ULTRA-TECH & AMBUJA

RETAILER

900BAGE

ULTRA-TECH

PARBHU JI BAGDA YOGESH JI GUPTA

RETAILER

1000BAGE ULTRA-TECH

7 GAYATRI BUILDAING MATERIAL & SUPPLAIR (PACHAWALA SHIRSHI ROAD) 8 BALAJI SALES CORPORATION (PACHAWALA SHIRSHI ROAD)

SUBDEALER

2000BAGE

BANGUR & AMBUJA & BINANI BIRLA UTTAM &ULTRATECH &SHREE ULTRA

PRALAD JI SHARAMA

RETAILER

1000BAGE

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BAGDA BUILDING MATERIAL (PACHAWALA SHIRSHI ROAD)

RAMGOPAL JI BAGDA

DEALER

2000BAGE

ULTRATECH& BANGUR&BI NANI ULTRA-TECH

10 KATAREYA BUILDING MATERIAL RAM KARAN JI (PACHAWALA SHIRSHI ROAD) KATAREYA 11 KHANDELWAL TRADERS (NIWARU ROAD 200 BY PASS) SHYAM KHANDLAWAL ANIL JI

SUBDEALER

900BAGE

DEALER

3000BAGE

AMBUJA

12 ANIL TRADERS (LAXMI NAGAR NIWARU ROAD JHOTWARA) 13 SHREE MAHA LAXMI TRADERS (NEAR BY PASS KALWAR ROAD KANTA) 14 PUJA BUILDING MATERIAL SAGANER ROAD GOUSHALA AGRAWAL TRADERS (A 26 HEERA BADI NIWARU ROAD JHOTWARA)

DEALER

9000BAGE ULTRA-TECH

SUBHAS JI AGRAWAL

DEALER

1000BAGE

BANGUR CEMENT

PAPU JI

RETAILER

300BAGE

JK LAXMI & AMBUJA

15

KISHAN KUMAR SHARMA

DEALER

2500BAGE ULTRA-TECH

16 RAJDHANI BUILDING MATERIAL SAGANER ROAD GOUSHALA 17 LAXMI CEMENT AGENCY SAGANER ROAD GOUSHALA 18 TRILOK BUILDING MATERIAL SONPATH, MANSAROVAR LAXMI BUILDING MATERIAL SONPATH, MANSAROVAR

SHYAM LAL SHENI RAMKISHOR SHENI

SUBDEALER

700BAGE

AMBUJA

DEALER

3500BAGE

AMBUJA &ULTRATECH& JK AMBUJA & JK AMBUJA

BABULAL SHENI

SUBDEALER

800BAGE

19

ANIL GOYAL

DEALER

8000BAGE

72

20

SHENI SALES CORPORATION (MADHYAM MARG,MANSAROVAR)

GOVIND RAM

DEALER

2000BAGE BINANI & JK WHITE

21 MUNA TRADERS (MADHAYAM MARG, MANSAROVAR) 22 GARIB TRADERS (VIJAY PATH, MANSAROVAR) GOVIND STONE BUILDING (TONK PHATAK, TONK ROAD ) BALAJI TRADERS (TONK PHATAK,TONK ROAD) CHANTAHARAN BUILDING MATERIAL (TONK PHATAK, TONK ROAD)

MUNA BHAI

DEALER

400BAGE

AMBUJA

HASHIM BHAI

RETAILER

500BAGE

AMBUJA

23

LALU LAL &GOVIND BHAWATI PARSAD SHIV KUMAR

SUBDEALER

2500BAGE

AMBUJA

24

DEALER

3000BAGE

ACC & ULTRA-TECH AMBUJA BIRLA WHITE

25

SUBDEALER

2000BAGE

26 GOVIND TRADERS (SHOP NO.7, DINESH KUMAR TONK PHATAK, TONK ROAD) 27 SHREE SHYAM TRADING COMPANY (GATTA KE PAS, TONK ROAD) SUNILGUPTA

SUBDEALER

1800BAGE ULTRA-TECH & AMBUJA 3000BAGE BANGUR & ULTRA-TECH & SHREE ULTRA BANGUR &AMBUJA

DEALER

28 SHREE RAM TRADERS (GATTA VINEY SHARMA KE PAS, TONK ROAD) 29 MACHIWAL AGENCYS (NEAR TO JUGAL KISHOR GOPALPURA BYPAS,TONK MACHIWAL ROAD) 30 VINAYAK CEMENT (NEAR TO GOPALPURA BYPAS TONK ROAD) DEEPAK

SUBDEALER

2000BAGE

DEALER

4000BAGE ULTRA-TECH

DEALER

2000BAGE

BANGUR &AMBUJA

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31

JAIN TRADERS (MAHAVIR NAGAR, TONK ROAD) JOYTI TRADING COMPANY (MAHAVIR NAGAR, TONK ROAD) BALAJI TRADERS (MAHAVIR NAGAR, TONK ROAD)

DOLAT SINGH

DEALER

1700BAGE

ROCKSTRONG

32

GOPAL CHODHYRI

SUBDEALER

1000BAGE ULTRA-TECH

33

MAHANDRA SINGH RAM LAL KUMAWAT

DEALER

2000BAGE ULTRA-TECH

34 SHREE LAXMI CEMENT AGENCY (AJMER ROAD NEAR 200 FIT BY PASS) 35 BHARAT TRADING COMPANY (AJMER ROAD)

DEALER

7000BAGE

AMBUJA

HARPHOOL SINGH

DEALER

2000BAGE

AAC

36

SHREE LAXMI CEMENT BUIED LAXMI NARAYAN PLAZA (AJMER ROAD NEAR 200 FIT BY PASS) SHREE LAXMI CEMENT SUPPLAIRS (AJMER ROAD OPP.TO BRIDGE) SAGAR MAL

DEALER

7000BAGE ULTRA-TECH

37

DEALER

2000BAGE SHREE ULTRA, BANGUR CEMENT 2000BAGE ULTRA-TECH & J.K.LAXMI 1500BAGE ULTRA-TECH & BINANI 2500BAGE J.K.LAXMI

38 SHREE RAM CEMENT AGENCY (AJMER ROAD, DCM MARKET) 39 AASIWAL AGENCY (AJMER ROAD BHAKROTA) SHIV TRADERS (AJMER ROAD BHAKROTA) RAJENDER TRADERS (AJMER ROAD)

OM PRAKASH

SUBDEALER

RAJESH

SUBDEALER

40

RAKESH JI

DEALER

41

RAJENDER JI

DEALER

3000BAGE ULTRA-TECH

74

42

PARDEEP TRADERS (AJMER ROAD) SAKHAWAT BUILDING MATERIAL ( MURLIPURA AJMER ROAD)

JUGAL KISHOR

SUBDEALER

1500BAGE

AMBUJA & ULTRA-TECH

43

GERIRAJ SINGH

DEALER

4000BAGE ULTRA-TECH

44 NIRANIYA TRADERS (SODALA) ASHOK NIRANIYA SUBDEALER

2000BAGE ULTRA-TECH & J.K.LAXMI & AMBUJA 1700BAGE ULTRA-TECH & J.K.LAXMI & AMBUJA 2000BAGE AMBUJA & ULTRA-TECH BINANI

45

NAVEEN TRADING COMPANY (SODALA)

RAJ KUMAR

SUBDEALER

46

RAMA AGENCY (SODALA)

VINOD SINGH

SUBDEALER

47 GODEALA TRADING COMPANY BADRI PARSAD (SODALA) 48 DEEPAK MARBALS (KALWAR ROAD 200FIT BY PASS) KIRAN SUPPLAIRS (KALWAR ROAD KATA PHANKA) DEEPAK

DEALER

6000BAGE

RETAILER

1000BAGE

AMBUJA

49

SANGRAM SINGH JAY SINGH

DEALER

3000BAGE ACC ULTRATECH 2000BAGE ULTRA-TECH

50 SEAKAWATY CEMENT UDAEG (KALWAR ROAD KATA PHANKA) 51 R.K. TRADERS (KALWAR ROAD KATA PHANKA) 52 ANKIT TRADING COMPANY (KALWAR ROAD KATA PHANKA) GNAESH STONECOMPANY (KALWAR ROAD KATA PHANKA)

DEALER

RAM KUMAR

DEALER

2000BAGE ULTRA-TECH

AHKASH

SUBDEALER

1000BAGE ULTRA-TECH

53

OM JI

RETAILER

800BAGE

J.K.LAXMI

75

54 H S CORPORATION&BUILDING MATERIAL (KALWAR ROAD KATA PHANKA) 55 MANISH TRADERS (SUBIKISHA MOBILE STORE KALWAR ROAD JHOTWARA) 56 MAHALAXMI SALES CORPORATION (MEDICALCENTER KALWAR ROADJHOTWARA)

HANUMAN SHAYE

DEALER

2500BAGE

SHREE ULTRA

SITA RAM JI

SUBDEALER

2100BAGE ULTRA-TECH

P.K.SINGH

DEALER

3000BAGE ULTRA-TECH

57 BAJARNG BUILDING MATERIAL (KEARDHANI NAGAR KALWAR ROAD) 58 JAGDAMBA TRADING COMPANY (SUBIKISHA MOBILE STORE KALWAR ROAD)

BAJARNG LAL

RETAILER

700BAGE

ULTRA-TECH

MOHAN LAL

DEALER

2000BAGE ULTRA-TECH

59 KUMAWAT TRADING COMPANY S.N.KUMAWAT (KALWAR ROAD KATA PHANKA) 60 VESAVEKARMASTON SUPPLAIRS (GOVINDPURA KALWAR ROAD) CHOOTMAL

DEALER

2000BAGE ULTRA-TECH

DEALER

1700BAGE ULTRA-TECH, BINANI CEMENT, SHRI ULTRA 3000BAGE ULTRA-TECH

61

VIJAYBUILDING MATERIAL (RAVANGAT KALWAR ROAD) KARDANI CEMENT UDUGH (SURJEET NAGAR KALWAR ROAD)

SURESH

DEALER

62

BASIDHAR KUMAWAT

DEALER

2000BAGE ULTRATECH

63

YADAV SALES CORPORATION GANAGARAM JI (KEARDHANI NAGAR KALWAR ROAD)

DEALER

2500BAGE

BINANI

76

64 SANGEETA STONE (KEARDHANI NAGAR KALWAR ROAD) 65 MARWAL STONE SUPPLAIRS (CHANDR NAGAR KEARDHANI KALWAR ROAD)

SANJAY

DEALER

1500BAGE

J.K.LAXMI

HANUMAN JI

DEALER

2000BAGE

ACC

66 GOVIND BUILDING MATERIAL (TAKYA KI CHOOKI BAJARNG DAWAR KALWAR ROAD) 67

GOVINDRAM

DEALER

2000BAGE ULTRA-TECH

GURU KRIPA BUILDING LAXMI NARAYAN MATERIAL (KEARDHANI NAGAR KALWAR ROAD) SIANI BUILDING MATERIAL (SIRSI ROAD) JAGDISH PARSAD

DEALER

2000BAGE AMBUJA, BIRLA SAMRAT J.K.LAXMI

68

RETAILER

500BAGE

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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. Awareness in simple terms - how many people know my brand? Usually, awareness is measured through a survey that asks participants a series of quest ions 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 Twitters 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

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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 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.

79

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
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 SCLS 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.

80

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 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 dont care about which brand

81

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

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, dealers 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 exdiscount coupons, small free gifts, scratch cards etc can be made available for the customers.

82

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 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.

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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: 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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85