Вы находитесь на странице: 1из 90

FOUNDER Lt.

LALA KAMLAPAT SINGHANIA

J.K. Cement is an affiliate of the J.K. Organization, which was


founded by Lala Kamlapat Singhania. The J.K. Organization is an
association of industrial and commercial companies and has
operations in a broad number of industries.

Our cement operations commenced commercial production in May


1975 at our first plant at Nimbahera in the state of Rajasthan. At
Nimbahera, we started with a single kiln with a production
capacity of 0.3 million tons. We added a second kiln in 1979 with
production capacity of 0.42 million tons, and a third kiln in 1982
with a production capacity of 0.42 million tons. We added a
precalciner with a capacity of 0.4 million tons in 1988, which
increased our capacity at Nimbahera to 1.54 million tons. During the years 1998
through 2003, we continued to implement modifications to each of our kilns, which
increased our aggregate capacity at Nimbahera to 2.8 million tons as of September
30, 2005.

We commissioned a second grey cement plant at our Mangrol plant in 2001, with a
production capacity of 0.75 million tons. As of September 30, 2005, we had an
aggregate production capacity of 3.55 million tons per annum of grey cement. Our
white cement plant was completed in 1984 with a capacity of 50,000 tons. Our
continuing modifications to the plant have increased its production capacity to
300,000 tons as of September 30, 2005.

Today, J. K. Cement Ltd. is one of the largest cement manufacturers in Northern


India. We are also the second largest white cement manufacturer in India by
production capacity. While the grey cement is primarily sold in the northern India
market, the white cement enjoys demand in the export market including countries
like South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri Lanka, Kenya,
Tanzania, UAE and Nepal.

Our access to high quality limestone reserves that are suitable for production of
white cement provides us with a competitive advantage. Based on geological
surveys conducted by independent agencies on our mines between 1996 and 2001,
our limestone reserves for both grey and white cement are expected to meet our
existing and planned limestone requirements of 4.0 MnTPA of grey cement and 0.4
MnTPA of white cement, for approximately 40 years.

Backed by state-of-the-art technology and highly skilled manpower against the


backdrop of India’s infrastructural growth in an overdrive, we are upbeat about the
future. We are confident of contributing heavily in India’s journey of development.
We see a world of concrete ideas on the horizon.
Board of Directors
Key Management Personnel

Dr. Gaur Hari Singhania

Chairman

Mr. Yadupati Singhania

Managing Director & CEO

Mr. J.P. Bajpai


Mr. K.N. Khandelwal

Mr. Raj Kumar Lohia

Mr. Ashok Sharma

Mr. Achintya Karati

Mr. Jayant Narayan Godbole

Mr. Suparas Bhandari


Dr. K.B. Agarwal

Dr. Gaur Hari Singhania


Chairman

Dr. Singhania, our Chairman, holds a Master of Arts degree in


Economics and a PhD degree in Economics from Agra University. He
has corporate experience spanning 50 years. He has been associated
with the Company as its Promoter Director and has led our Company since its
inception in 1994. He is also the Chairman of JKSL, Juggilal Kamlapat Cotton Spg. &
Wvg. Mills Company Limited and J.K. Traders Limited. He has held the position of
Chairman of the Merchant Chambers of Uttar Pradesh and Employers Association of
Northern India.

He has also been the president of Uttar Pradesh Stock Exchange Association
Limited. He has been a director of Pradeshiya Industrial Investment Corporation of
Uttar Pradesh, UttarPradesh State Industrial Development Corporation and the
Uttar Pradesh State Sugar Corporation. Currently, he is also the chancellor of
Dayanand Shiksha Sansthan and the president of Kanpur Education Society.
• Customer Satisfactionz

• Always invest in Latest Technology

• Huge Distribution Network Creation

• Expansion through Balancing Equipment

• Constant focus on Cost Control & Quality


• Invest in Managers & Develop People Skills

• Stability of Executive Management & Low Employee turnover

• Social Welfare - A Priority

We enjoy a number of key competitive advantages, which have helped us


maintain our position as one of the leading cement manufacturers in the
Northern Indian cement market. Our principal strengths and competitive
advantages are as follows:

Leading position in attractive Northern India grey cement market.

Based on CMA data, Northern Indian cement manufactures have consistently


operated at the highest levels of capacity utilization among India’s five regions. We
believe this reflects the strong demand in Northern India for cement products
relative to supply. Further, based on capacity expansions announced by cement
manufacturers, we expect cement plants in Northern India to continue to operate at
high utilization levels and anticipate continued strong demand for our grey cement
products in the near and medium-term.
We believe that we are well positioned to take advantage of this demand, as the
fourth largest grey cement manufacturer in Northern India, and the largest grey
cement manufacturer in the state of Rajasthan.

One of the Leading white cement producer in India

White cement accounted for 16.6% of our total cement revenue and 35.2% of
adjusted EBITDA from our cement operations in fiscal 2005, and 15.5% of revenues
and 26.7% of our adjusted EBITDA from our cement operations in the six months
ended September 31, 2005. Unlike grey cement, the white cement industry in India
is highly concentrated with the two largest players accounting for the substantial
majority of India’s production capacity. Consequently, prices of white cement have
been relatively less volatile and sales of white cement have generated more stable
cash flows for us even during industry downturns in grey cement. We also believe
our

position as the second largest producer of white cement in India, together with our
nationwide delivery network, significantly enhances the overall brand image of JK
Cement.

Proximity and access to large reserves of high quality limestone

We have access to large reserves of limestone for both our grey and white cement
operations, which we believe are sufficient to sustain our operations well into the
future. Based on independent geological surveys of different mines during 1996 to
2001, we believe that our limestone reserves are sufficient to support our current
and planned capacity for approximately 40 years for both grey and white cement.
(Put in risk - assuming we are able to renew our existing leases upon their expiry)
As one of the first cement producers in Northern India, we were able to choose our
limestone reserves in an area with high quality limestone resources. In addition to
allowing us to produce white cement, which requires high quality limestone, it also
provides us with a cost advantage, as we are not required to purchase sweeteners
to improve the quality of limestone. Further, our manufacturing plants are in close
proximity to our limestone reserves, resulting in lower transportation costs. Finally,
our mines that supply our white cement plant at Gotan also have a supply of white
clay, an important additive necessary for white cement production.

Quality of products and strong brand name

We believe that brand name and reputation are important to retail purchasers of
cement in India. We have built a strong reputation among cement purchasers by
consistently providing high quality products. We believe that there is strong
customer awareness of our brands, JK Cement (“Sarvashaktiman”), for grey
cement in our principal market in Northern India, and JK White (“Camel”), for white
cement across India. Further, we believe that our brand name and our reputation
for consistently supplying high quality products provide us with a competitive
advantage in ensuring that cement dealers carry our products.

Extensive marketing and distribution network

We have a wide distribution network for grey cement in Northern India. We also
have a strong all-India distribution network for white cement. Our distribution
network for grey cement products consists of 44 feeder depots serviced by seven
regional sales offices in Delhi, Haryana, Uttar Pradesh, Punjab, Rajasthan, Madhya
Pradesh and Gujarat. Our white cement network comprises 20 feeder depots
serviced by 13 regional sales offices in Delhi, Chandigarh, Uttar Pradesh, West
Bengal, Andhra Pradesh, Tamil Nadu, Karnataka, Kerala, Maharasthra, Gujarat,
Madhya Pradesh and Rajasthan. In addition, we have more than 4,000 retail stores
that stock our grey and white cement products, as well as 22 sales promoters and
four handling agents. We believe that the extent of this network, and our
relationships with our dealers, enables us to market and distribute our cement
widely and efficiently.

Experience and technical know-how

We have 30 years of experience in the Indian cement industry, which we believe


provides us with the skills to maximize production efficiency, expand production
capacity quickly and reduce costs. Over the years, we believe that we have
developed long-term customer relationships and a strong reputation for quality. In
addition, we have a proven track record of upgrading and modernizing our
production capabilities efficiently, having increased our production capacity at
Nimbahera by more than 80%, from 1.54 million tons in 1998 to 2.8 million tons as
of September 30, 2005. Further, we have a stable and experienced middle and
senior level management team, many of whom have been working in our cement
operations for more than 20 years. Our Nimbahera manufacturing facility was
chosen by the World Bank and the Danish International Development Agency as
one of the four training centers in India to serve as the “Regional Training Center”
for Northern India. There are only four regional training centers for the cement
industry in India, and we believe our operation of the training center provides us
with access to state of art training aids, live working models, and technical
expertise developed by well known national and international cement producers.

Architect of the Year Award (AYA)

Architecture was more or less identified with housing & more so with elite housing.
However, many countries have used architecture effectively for public structures
also, such as highways, metro rails, factories, harbours & any other public facilities.
These projects/structures shall consume lot of building materials. If these
structures have to look pleasing, relevant architecture has to be applied in their
designs.

The subject of challenges to architecture vis-a-vis town planning, infrastructure


development & affordable housing is being discussed in various countries through
various forums. Mr.Yadupati Singhania, Managing Director, J.K. Cement Ltd.,
thought that we could contribute to this cause by encouraging outstanding talent in
the profession of architecture as a continuous process & thereby set an example for
others in this profession to do better & better.

This is how Architect of the Year Award (AYA) began way back in the year 1990 (1st
Architect of the Year Award). Awards were subsequently extended to architects of
neighbouring countries from the year 1996 (7th Architect of the Year Award). To
encourage state level architecture, State Architecture awards were also introduced
from the award year AYA-98 (9th Architect of the Year Award).
Over the years, we have developed long-term customer relationships and a strong
reputation for quality. In addition, we have a proven track record of upgrading and
modernizing our production capabilities efficiently, having increased our production
capacity at Nimbahera by more than 80%, from 1.54 million tons in 1998 to 2.8
million tons as of September 30, 2005.We have a stable and experienced middle
and senior level management team, many of whom have been working in our
cement operations for more than 20 years.

Our Nimbahera manufacturing facility was chosen by the World Bank and the
Danish International Development Agency as one of the four training centers in
India to serve as the “Regional Training Center” for Northern India. There are only
four regional training centers for the cement industry in India, and we believe our
operation of the training center provides us with access to state of art training aids,
live working models, and technical expertise developed by well known national and
international cement producers.
• Jaykaycem Ltd., a wholly owned subsidiary of J.K.Cement Ltd. is setting up
Greenfield Grey Cement plant with split grinding unit in the state of Karnataka.
• In Phase – I, Integrated plant of 2.5 million tons would be set up at Muddapur,
distt. Bagalkot and in Phase – II , split grinding unit of 1.0 million tons would be set
up at Bellary.
• Substantial Land for factory & colony have been acquired and the entire factory &
mining land will be procured by March’07.
• Orders have been placed for main plant & equipment, gear boxes and other long
delivery items Foundation stone laying ceremony was held on 8th Dec.’06 and civil
work has started.
• Integrated Unit (Phase – I) will be completed in Oct.- Dec.’08 quarter and Grinding
Unit (Phase – II) would be commissioned after 6–12 months of Phase-I.


• We produce grey cement and white cement. Grey cement produced by us consists
of Ordinary Portland Cement (“OPC”) and Portland Pozzolana Cement (“PPC”). OPC
has three principal grades that are differentiated by their compressive strengths,
and consist of 53-grade, 43-grade and 33-grade OPC.

All our products comply with the quality standards specified by the Bureau of Indian
Standards (“BIS”). Our cement products are marketed under the brand names J.K.
Cement and Sarvashaktiman for OPC products, J.K. Super for PPC products and J.K.
White and Camel for white cement products, which we believe are well known
brands.

• White cement based putty for luxurious and silky interior/exterior finish of your
dream home.

JK Wall Putty is White Cement based...

• more


• Grey Cement
• Grey cement produced by us consists of OPC and PPC. There are also other
cements in the market that we do...

more


• White Cement
• We manufacture white cement under the brand names J.K. White and Camel. White
cement is produced using a...

more


• Water Proof
• JK Water proof is another product from JK Cements Ltd. which is ISI approved. It’s
a water repellent material in...

more

Technologies change, needs change, and in turn products change. What remain
unchanged, are values and ideas that propel any entity forward. Ideas that are
concrete and unwavering, just like their outcome. At JK Cement we are crossing
milestones, one after another, propelled by the following concrete ideas:

• To provide products that fully comply with technical specifications committed to our
customers, at the most competitive price.
• To ensure complete reliability in our dealings with customers, distributors, suppliers
& other partners.
• To operate our manufacturing facilities in such a way, that they help sustain the
environment & provide new opportunities for the underprivileged in that region.
• To ensure that every department of our every office encourages new & better ideas
and freedom of expressing the same, and cultivate a work environment that
rewards excellence in every employee’s chosen area of work leading to a
harmonious & fulfilling atmosphere.
• To motivate every team member to challenge his last best performance and out do
it continually.
• To remain abreast and imbibe the latest technological trends for the benefit of our
customers.

We manufacture grey cement in two facilities located at Nimbahera and Mangrol in


the state of Rajasthan in Northern India. White cement is produced at our facility at
Gotan in the state of Rajasthan. Our plants have obtained many accolades and
recognition, the most noteworthy being : ISO-9001:2000 QMS and ISO-
14001:2004 EMS for the grey cement facility at Nimbahera and ISO-9001:2000
QMS, ISO-14001:1998 EMS & OHSAS-18001:2005 Occupational Health and Safety
for the white cement facility at Gotan. The construction of our first most modern
dry cement plant began in 1970 in Nimbahera in Rajasthan.

The following table shows a breakdown of production of the Nimbahera, Mangrol


and Gotan cement facilities for the periods indicated

PRODUCTION (IN METRIC TONS)

Fiscal Fiscal Fiscal Six months


2003 2004 2005 ended
September
30, 2005

Nimbahera 2,323,283 2,272,760 2,414,196 1,256,942

Mangrol 570,464 718,572 912,419 493,211

Gotan 200,149 215,538 224,481 99,343


• The production process for cement consists of drying, grinding and mixing
limestone and additives like bauxite and iron ore into a powder known as “raw
meal”. The raw meal is then heated and burned in a pre-heater and kiln and then
cooled in an air cooling system to form a semi-finished product, known as a clinker.
Clinker (95%) is cooled by air and subsequently ground with gypsum (5%) to form
Ordinary Portland Cement (“OPC”). Other forms of cement require increased
blending with other raw materials. Blending of clinker with other materials helps
impart key characteristics to cement, which eventually govern its end use.

There are two general processes for producing clinker and cement in India : a dry
process and a wet process.

The basic differences between these processes are the form in which the raw meal
is fed into the kiln, and the amount of energy consumed in each of the processes.
In the dry process, the raw meal is fed into the kiln in the form of a dry powder
resulting in energy saving, whereas in the wet process the raw meal is fed into the
kiln in the form of slurry. There is also a semi-dry process, which consumes more
energy than the dry process but lesser than the wet process.
• The basic steps involved in the production process is set out below:

All J.K. Cement plants are dry process plants. Limestone is crushed to a
uniform and usable size, blended with certain additives (such as iron ore and
bauxite) and discharged on a vertical roller mill, where the raw materials are
ground to fine powder. An electrostatic precipitator dedusts the raw mill gases
and collects the raw meal for a series of further stages of blending. The
homogenized raw meal thus extracted is pumped to the top of a preheater by
air lift pumps. In the preheaters the material is heated to 750°C.
Subsequently, the raw meal undergoes a process of calcination in a
precalcinator (in which the carbonates present are reduced to oxides) and is
then fed to the kiln. The remaining calcination and clinkerization reactions are
completed in the kiln where the temperature is raised to between 1,450°C
and 1,500°C. The clinker formed is cooled and conveyed to the clinker silo
from where it is extracted and transported to the cement mills for producing
cement. For producing OPC, clinker and gypsum are used and for producing
Portland [Pozzolana] Cement (“PPC”), clinker, gypsum and fly ash are used.
In the production of Portland Blast Furnace Stag Cement (“PSC”), granulated
blast furnace slag from steel plants is added to clinker.
Code Of Conduct

At J.K. Cement, we view corporate governance in its widest sense, almost like
trusteeship. The company’s philosophy on Corporate Governance is to enhance the
long-term economic value of the company, its stakeholders i.e. the society at large
by adopting better corporate practices in fair transparent manner by aligning
interest of the company with that of its shareholders/other key stakeholders.
Corporate Governance is not merely compliance and not simply creating checks and
balances, it is an ongoing measure of superior delivery of Company’s objects with a
view to translate opportunities into reality. In so far as compliance with the
requirements of Clause 49 of the Listing Agreement with the Stock Exchange,
Mumbai is concerned, the Company is in full compliance with the norms and
disclosures that have to be made.

Constitution of the Audit Committee

Sr.
Name of the Director Status
No.

1. Mr. Ashok Sharma Independent, Non Executive (Chairman)

2. Mr. Raj Kumar Lohia Independent, Non Executive

3. Mr. A. Karati Independent, Non Executive

4. Mr. K.N. Khandelwal Non-Independent, Non Executive


Constitution of the Remuneration Committee

Sr.
Name of the Director Status
No.

1. Shri R.K. Lohia(Chairman) Independent Non-Executive Director

2. Shri J.P. Bajpai Independent Non-Executive Director

3. Shri Suparas Bhandari Independent Non-Executive Director

4. Shri A. Karati Independent Non-Executive Director

Constitution of the Shareholders Grievance Committee

Sr.
Name of the Director Status
No.

1. Mr. J.P. Bajpai Non Executive, Independent (Chairman)

2. Mr. Raj Kumar Lohia Non Executive, Independent

3. Mr. K.N. Khandelwal Non Executive, Non Independent

UNAUDIT FINANCIAL RESULTS FOR THE QUARTER ENDED


BSE

Currency : Rupees Code : 532644


Price 110.65 Day High 120.00
BID 110.65 Day Low 109.55
Offer 0.00 52 Week High 132.00
Change On Day -4.20 52 Week Low 35.00
Percentage -3.66
Change
Last Trade Aug 10,2009 Opening Price 118.45
Daily Volume 20,789.00 Previous Closing 114.85
BSE quotes delayed by 15 minutes syndicated by www.capitalmarket.com

NSE
Currency : Rupees Code : JKCEMENT
Price 110.50 Day High 118.80
BID 110.50 Day Low 110.10
Offer 0.00 52 Week High 132.90
Change On Day -4.65 52 Week Low 31.25
Percentage -4.04
Change
Last Trade Aug 10,2009 Opening Price 117.50
Daily Volume 69,320.00 Previous Closing 115.15

CHART
Top of Form
BSE None
Plot at Compare with

Show Chart
Select Period

D a y

M o nth
Select Period From

Y e a r

Select Period End D a y

M o nth

/
Y e a r

Show Chart

Bottom of Form

Share Data
Market Price Data
BSE
Date High (Rs.) Low (Rs.) Sensex High Sensex Low
April 2007 159.00 137.50 14383.72 12425.52
May 2007 168.00 150.05 14576.37 13554.34
June 2007 162.00 136.40 14683.36 13946.99
July 2007 179.00 143.20 15868.85 14638.88
August 2007 181.95 148.00 15542.40 13779.88
September 2007 182.50 166.00 17361.47 15323.05
October 2007 204.00 164.00 20238.16 17144.58
November 2007 238.80 177.00 20204.21 18182.83
December 2007 256.70 212.65 20498.11 18886.40
January 2008 224.80 132.00 21206.77 15332.42
February 2008 183.50 158.00 18895.34 16457.74
March 2008 167.00 123.10 17227.56 14677.24

NSE
Date High (Rs.) Low (Rs.) Sensex High Sensex Low
April 2007 158.00 136.00 5043.03 4379.37
May 2007 168.50 150.00 5185.95 4908.99
June 2007 163.00 136.55 5223.82 4971.76
July 2007 177.80 145.15 5593.96 5218.32
August 2007 178.00 142.90 5411.29 4938.51
September 2007 182.45 165.20 6094.11 5424.33
October 2007 204.20 142.65 7169.67 6151.88
November 2007 239.00 175.10 7209.99 6701.81
December 2007 252.90 210.00 7479.08 6972.75
January 2008 224.75 130.00 7642.89 5955.22
February 2008 185.80 156.10 6672.07 5886.53
March 2008 169.80 123.25 6027.69 5517.59

Distribution Schedule as on 31.03.2008


No. of Equity No. of % of No. of Shares % of
Share held Shareholders Shareholders held Shareholding
Upto 500 111711 98.18 4429932 6.34
501 to 1000 1285 1.13 953769 1.36
1001 to 2000 374 0.33 569494 0.81
2001 to 3000 113 0.10 280245 0.41
3001 to 4000 55 0.05 198419 0.28
4001 to 5000 49 0.04 232876 0.33
5001 to 10000 87 0.08 649794 0.93
10001 and above 110 0.09 62612721 89.54
Total 113784 100.00 69927250 100.000
Year 2007

• Press Release Net Profit spurts by 60% for the quarter ended Dec. 31’2007.

• Press Release Net Profit spurts by 114% for the quarter ended Sep. 30’2007.

• Press Release Net Profit spurts by 59% for the quarter ended June 30’2007.

• Transcript -Telecon 16th May 07

• Press Release Net Profit spurts by 448% for the year ended March 31’2007.

• 26 March 2007 - The Economic Times


Year 2006

• Recommenadations : Buy - Indsec Securities & Finance Ltd. 20 Dec.2006

• Recommenadations : Buy - K B S Capital Managment Ltd. 4 Dec.2006

• Corporate Report published in Fortune India Q2

• 30 Sept 2006 News paper :Reviws Quarterly Financial Results of Q2

• 30 July 2006 JK Cement Posts 843pc Profit in Q1

• 30 May 2006 Architect of the year award presented by J.K. Cement

• 28 May 2006 News Paper : Hindmata : Mumbai

• 27 May 2006 News Paper : Nav Bharat : Mumbai

• 17 May 2006 News Paper : The Hindu Business Line : Mumbai

• 15 May 2006 News Paper : Business Standard : Mumbai

• 12 May 2006 News Paper : The Financial Express : Mumbai

• 10 May 2006 News Paper : The Financial Express : Mumbai

• 9 May 2006 JK Cement Ltd. net up by 165% in Q4

• 7 May 2006 JK Cement Ltd. net up by 165% in Q4


• 5 May 2006 News Paper : Nav Bharat : Mumbai

• 4 May 2006 News Paper : Economic Times : Ahmedabad

• 2 May 2006 Corporate ScoreCard

• 24 Apr 2006 News Paper : The Economic Times : Mumbai

• 10 Apr 2006 www.sify.com

• 9 Apr 2006 News Paper : The Hindu Business Line : Mumbai

• 4 Apr 2006 News Paper : The Hindu Business Line : Mumbai

• Concrete Road with proper drainage system


at Gotan village
• Sponsorship of annual Eye camps at Gotan
• Street Light for Gotan village
• Tree plantation along the road leading to Gotan
• Organising Social event for residents of Local area
• Funding & Technical support for Infrastructure projects of Local Community
• Tube Well – to provide drinking water for villagers
• Temple (Renovation of two old temples)
• Dharamshala (Inn) at Gotan Village
• Free education to the wards of Kargil war heroes
• Free bus service for students of near by villages
• Building for girls school at Gotan village

• Construction of Hospitals
• Sponsorship in eye camps
• Construction of Dharamshalas
• Construction of Panchayat building
• Construction of Temple in township
• Construction of school buildings in nearby villages
• Construction of roads connecting with the highways
• Provide drinking water facilities in nearby villages by bore wells
• Operating an Industrial Training Institute affiliated with National Council for
Vocational Training, Govt. of India
• Running two schools : Padam Vidya Vihar- From K.G. to Vth Class & Kailash Vidya
Vihar – From VIth to XII affiliated with Central Board of Secondary Education
(CBSE) Govt. of India. More than 1000 students study in these schools
Finished Products in Year 2008-09.

--------------------------- in Rs. Cr.


Finished Products Mar 2009
---------------------------

Product Name Unit Installed Production Sales Sales


Capacity Quantity Quantity Value

Portland Cement Metric 4,471,900 3,799,581.003,799,759.00 1,496.84


Tonnes

Cement (White) Metric 400,000 249,958.00 249,196.00 0.00


Tonnes

Others - NA NA NA 0.00

Sales Not Specified - NA NA NA 0.00


Total 1,496.84

MARKETING STRATEGY

 Distribution Channel.
 Physical Distribution of Good in India.
 Promotion Mix

 Distribution Channel

Extensive marketing and distribution network

We have a wide distribution network for grey cement in Northern India. We also
have a strong all-India distribution network for white cement. Our distribution
network for grey cement products consists of 44 feeder depots serviced by seven
regional sales offices in Delhi, Haryana, Uttar Pradesh, Punjab, Rajasthan, Madhya
Pradesh and Gujarat. Our white cement network comprises 20 feeder depots
serviced by 13 regional sales offices in Delhi, Chandigarh, Uttar Pradesh, West
Bengal, Andhra Pradesh, Tamil Nadu, Karnataka, Kerala, Maharasthra, Gujarat,
Madhya Pradesh and Rajasthan. In addition, we have more than 4,000 retail stores
that stock our grey and white cement products, as well as 22 sales promoters and
four handling agents. We believe that the extent of this network, and our
relationships with our dealers, enables us to market and distribute our cement
widely and efficiently.

White cement is for both consumer Product and Industrial Product. So J.K. cement
ltd. uses both method of distribution. J.K. works ltd use personal selling/Project
trade.

Marketing Middlemen:
J.K. Cement Ltd. uses Merchant middle men for selling their products.
Middle Man
(1) Distributors
(2) Retailers
Physical Distribution of White Cement in India:
Company uses surface transport for distribution of their product in India and Nepal.
(1) Roadways. (Trucks, Tempos)
(2) Railways. (Goods Train)
Customer Care:
Linking Company to Customers
President (T & MS): M. P. Rawal
SPECIALITY OF SERVICE: SPECIALITY OF EXECUTIVE:
Before Purchase Experience
Before Application Nearness to
During Application Speaking your language

JK Cement Ltd. Works on 100% consumer’s satisfaction. Thus why JK Cement Ltd.
has Customer Technical Services Department. This department of JK Cement works
with Marketing department to teach the consumers, painters, masons and
contractors about the JK Cement products. They organized different kind of
programs to teach them. Which not only works as customer care department it also
help in creating a good will in consumers and market for JK Cement products.
Programs run by Customer Technical Service Department
1. Product Application Seminars (PAS): Company interact with the group
of Architects/engineers &Industrial Consumers for innovative and new
application. We jointly work with them to integrate these applications into
their projects
2. Exhibition (EXH): Company organized many exhibition in different cities
time to time to aware the consumers and professionals.
3. Counter Service Meet (CSM): In this activity a show is organized at
stockist’s counter to increases the brand awareness and to respond to all
sales related & technical problems faced by consumers during construction
of their houses.
4. Demonstration of Application (DOA): Trained & experienced application
Engineers/Supervisors/Masons/Painters give demonstration of various
cements to customers.
5. Stockist & Dealer Awareness(SDA): They provide basic information
about our products. Literature, packaging &trade policies to registered
Dealers & Stockists.
6. Painter’s Technical Workshops (PTW): PTW is conducted to develop
specialized Application awareness amongst painters about J.K. Wall Putty,
Cement Paint& White Washing with White Cement application.
7. Mason’s Technical Workshops (MTW): MTW is conducted for masons
throughout India for knowledge transfer of specialized applications related to
construction activities.

PROMOTION MIX:
JK Cement Ltd. uses different promotion methods for their products.
Advertisement
Sales Promotion
Personal Selling
Push Strategy

Advertising: Company uses media, magazines, point or purchase display,


packing, sponsorship, billboards, banners for advertising their products in
customers.
Sales Promotion: JK Cement uses Dealer-Retailers Sales Promotion Program
for their products.
➢ Gifts: They keep giving gifts to their distributors and retailer like T-
shirts, umbrella, stationary and tools.
➢ Discount Coupons: Consumers get money coupons in putty packets.
➢ Exhibitions: Customers Technical Service keeps organizing exhibitions
of products in fairs.
➢ Public Relations: Company improves its public relation through
customer care with help of Customer Technical Service.
PERSONAL SELLING: Company uses personal selling for their products in form
of Project Trade. In this project trade marketing executives takes some
construction work and provide all type of support to consumer at using company
products.

Push Strategy:

Deman
Organization uses push strategy into the distributors and retailer by carrying
trade promotion through field staff. These force intermediaries to more
merchandise. Organization provides many facilities to distributors and
retailer to increase the sale of J.K. Cement products in market.

Growth j k cement
White Cement has registered growth in production and sale in India in the last few
years. The White Cement sector has been growing at the rate of 11% per year. This
has given the Indian cement industry a major boost.

White Cement is much like the ordinary grey cement except that it is white in color.
In order to get this color of the White Cement, its method of production is different
from that of the ordinary cement. However, this modification in its production
method makes White Cement far more expensive then the ordinary cement.

The production of White Cement requires exact standards and so it is a product


which is used for specialized purposes. White Cement is produced at temperatures
that hover around 1450-1500 degrees Celsius. This temperature is more than what
is required by the ordinary grey cement. As more energy is required during the
manufacture of White Cement, it goes to make it more expensive than the ordinary
grey cement.

White Cement is used in architectural projects the use of white cement has been
specified. It is used in decorative works and also wherever vibrant colors are
desired. White Cement is used to fill up the gaps between marble and ceramic tiles
for a smoother and more beautiful finish.

The various raw materials required for the production of White Cement are:
• Limestone
• Sand
• Iron Ore
• Nickel
• Titanium
• Chromium
• Vanadium
RESEARCH METHODOLOGY

The first step in a marketing research process is to define the problem chosen for
investigation. This step is a very significant one, since it is said, “A problem well
defined is half solved”. Once the problem is defined the next step, which is the
research design, becomes easier. The research design is the basic framework,
which provides guidelines for the rest of this research process. It is a map or blue
print according to which the research is to be conducted. The research design
specifies the methods for data collection and data analysis.

THE RESEARCH DESIGN


The research design used in the project is Exploratory Design. The investigation is
carried upon the selected area. The reason for choosing this design is to get
responses from the RETAILERS so that the company could discover new ideas
trough

Primary
Focus
Exploratory
Descriptive
Group
DataResearch
analysis
Research
Design
Design
Tool for collection of data
A structured questionnaire as placed at Annexure

Collection of
data

Qualitative data Quantitative data

1. Surveys 1. Observation
Sampling Technique

Random sampling method is used in the project.

Sampling
Random sampling
Probability
Non-Probability
SAMPL Sampling
Sampling
ING

THE DATA SOURCE


The source of the data has been according to the response of retailers which mainly
includes interviews of retailers & with the help of pre drafted questionnaire.

Primary data

Primary data is collected through

➢ Questionnaires
➢ Respondents interview

Secondary data

Secondary data is also of much significance in the research, secondary data are
those data which was recorded earlier by the researcher or other researcher’s for
further use.

➢ Websites
➢ Newspaper articles
➢ Brochures
➢ Pamphlets
➢ Magazines

Area covered in the survey


Jawahar vihar Malik mau Firoz Gandhi

ghosiyana Gandhi nagar Indra nagar

Nirala nagar Satya nagar Jail garden road

Kanal road Prabhu town Sindhi quarter

Jahana bad Vazeer gunj Gulab road

Ahmed nagar Kaharon ka adda Kila bazaar

Sabzi mandi Khali sahat Rana nagar

Police line Jail road

Demographic profile:

Age group: 18 to 70 years.

Gender: Male, Female

Target segments: This survey is done on general


consumer, end users, contractors, painters.

Sample Size

The sample size has been fixed to 300 respondents. Cement & Wall Putty keeping
in mind statistical consideration and practical difficulties.

Method of analysis
Each data is tabulated and analyzed with the help of percentage response,
corresponding graphs are made use of each data is evaluated and findings are
recorded. The conclusion is drawn, and suggestions are made.

ANALYSIS

Consumers Behavior Analysis of J.K. Cement & Wall Putty in Lucknow


Q-1Which one product you use?

(a) J.K. (b)Birla

Response- Question1 has two options & people give their response as

163 respondents answer is YES.

27 respondents answer is No.


It can be shown as in pie chart as:-

Results & Findings: - It is clear that majority use J.K.

Q-2.Do you know about J.K. products?

(a)J.K. white cement (b)J.K. wall putty

Response- 200 people know about (a) it is 100%.


187 people know about (b) it is 93.50%.

It can be shown as in bar chart as:-

Results & Findings: - From the above result, it is clear that wall putty needs
better attention.

Q-3 how do you come to know about the product?

(a) Advertisement (TV)

(b) Newspaper

(c) Pamphlet

(d) Retailer

Response-

(a) 92 people choose option (a) out of 200--------------46%

(b) 42 people choose option (b) out of 200---------------21%

(c) 58 people choose option (c) out of 200 -------------29%

(d) 8 people choose option (d) out of 200-----------------4%

It can be shown as in pie chart as:-


Response- The order of the responses of the awareness of the product is in the
order of a, c, b, d. The marketing department can take various important
information about advertising of their product.

Q-4 which one is the best way to advertise?

(a) Pamphlets

(b) Advertisement

(c) Professionals/Painters

(d) Retailers.

Response-

➢ 12 out of 200 choose option a ------6%.


➢ 146 out of 200 choose option b------73%.
➢ 38 out of 200 choose option c -------19%.
➢ 4 out of 500 choose option d --------2%.
Results & Findings: - The advertisement of the product by electronic media is
capable to aware the customers about the product. This result shows that
customers main source of information search are basic medium in cement industry.

Q-5 do you ask product by name?

This is question has two options.

(a) Yes (b) No.

Response-

➢ 186 people say ‘yes’ It covers 93%.


➢ 14 people say ‘no’ which is 7%.

Results & Findings: - From above chart it is clear generally people ask
J.K. White Cement by its name. It shows people trust on J.K. white cement
products and it is giving good competition to other brand.

Q-6 which external option affects you while choosing the product?

(a) Inspired by ads /own likings

(b) Retailer
(c) Painter

Response-

➢ 76 people out of 200, which comes 38%


➢ 96 people out of 200, which comes 48%
➢ 28 people out of 200, which comes 14%

Results & Findings: - Results show that people like own liking of any product.
But they also believe in retailer suggestion.

Q-7 does the retailer give suggestion while purchasing the product?

(a) Yes (b) No.

Response-

➢ 116 respondents out of 200 said YES.


➢ 84 respondents out of 200 said No.
Results & Findings: -so there is more requirements to tell retailer about
suggesting their customer for J.K. Product.

Q-8In how much time do you use the product?


(a) 0-1 year
(b) 1-2 years
(c) 2-3 year
(d) Above 3 year

Response-

➢ 19% respondents go with the option (a).


➢ 37% respondents go with the option (b).
➢ 29% respondents go with the option (c).
➢ 15% respondents go with the option (d).

It can be shown as in pie chart as:-

Results & Findings: - It is clear that we can prove our product quality is better
than other product.

Q-9 Are you satisfied with the availability of the product in your local area?
(a)Yes (b)No

Response-

➢ 186 respondents (93%) say YES out of 200 respondents.


➢ 14 respondents (7 %) say NO out of 200 respondents

It can be shown as in pie chart as:-

Results & Findings: - From above chart it is clear the availability of the J.K.
products is good in local raebareli market.

Q-10 Is it performing according to your perception?

(a) Yes (b) No

Response-

➢ 178 out of 200 choose option a ------89%


➢ 22 out of 200 choose option b--------11%

It can be shown as in bar chart as:-


Results & Findings: - the result is showing that the customer of J.K. products find
their product performing according to their perception.

Q-11 what is the order of liking the product quality?

(a) Whiteness

(b) Durability

(c) Strength

(d) Price

Response-

➢ Option (a):- 86 respondents (around 43%) like whiteness in J.K. Wall


Putty out of 200 those who used the J.K. Wall Putty.
➢ Option (b):- 38 respondents (around 19%) like durability of J.K. Wall
Putty out of 200 those who used the J.K. Wall Putty.
➢ Option (c):- 72 respondents (around 36%) like strength in J.K. Wall Putty
out of 200those who used the J.K. Wall Putty.
➢ Option (d):- 4 respondents (around 2%) like price in J.K. Wall Putty out of
200 those who used the J.K. Wall Putty.

Results& Findings: - Results show that people like whiteness and strength of
J.K. White Cement. It has good image in respondents. J. K. cement ltd is on their
standards.

Q-12 do you know about other wall putty?

(a) Yes (b) No


Response:

➢ 134 users say Yes. It covers 67%


➢ 66 users say No. It covers 33%.
It can be shown as in pie chart as:-

Results& Findings: - It is clear from the result that user of J.K. wall putty are
aware of the

Q-13.which one is more satisfying?

(a) J.K. white cement (b) J.K. wall putty

Response:

➢ 56 % user satisfied with the J.K. white cement.


➢ 44 % user satisfied with the J.K. wall putty.

It can be shown as in pie chart as:-


Results& Findings: -Mostly user of J.K. Products is satisfied with product
performance.

Q.14.do you suggest your friend to use this product?

(a) Yes (b) No

➢ 176 means 88% people say yes .


➢ 24 means 12% people say no.

It can be shown as in pie chart as:-

Results& Findings: it means that the product has better value among the user. It
is the sign of better product quality.
Q.15 Do you have any complain about the product?

(a)Yes (b) No

➢ 22 people out of 200 means 11% user say ‘yes’.


➢ 178 people out of 200 means 89% user say ‘no’.

It can be shown as in pie chart as:-

Results& Findings: I find the user who have the complain have some
misconceptions about the product.

NAME:……………………………………………………………………….

ADDRESS:………………………………………………………………..

…………………………………………………………………………………..

OCCUPATION:…………………………………………………………..

CONTACT NO…………………………………………………………….

RESPONDENT’S SIGNATURE………………………………………..

BY:

SHAMSHAD AHMED

Integral university

Lucknow

CONCLUSION
After analyzing the primary data it is found that goodwill of J K White cement
product is very good in the market. People know about J K & it’s products & they
are using J K products. People, who are using J K Products, are satisfied with J K
product only a few people (1.30%) are not satisfied with J K products. Generally
people believe that J K White cement product provides more whiteness and
strength in comparison of other brand & mostly people rate J K Product on 9 at
scales of marking.

It shows that the company image of J K White cement is very good in the market.
SUGGESTIONS

Today the Indian market has become very competitive towards White Cement &
Wall Putty from the emergence of new brands. There is a lot of competition tap the
situation & growth tremendously in the field.

The response of Indian market towards the White Cement & Wall Putty is very
positive & forward looking.

The company can do much better by implementing these given


suggestion:-

1- Information broachers should be given with the bag of Putty & cement
so that consumer can know how to use these products better &
effectively.
2- Advertisement play an important role in awareness of White cement

&wall putty consumer foremost television advertising is the basic

gradient of awareness, but they also pay the attention to magazine,

wall painting and hoarding & effective painter meetings.

3- Introduce more choice of packaging i.e.: 2 kg. & 10 kg. Pack of putty.
4- Introduce colors pack which can be mixed easily with White cement &
can be used in wall painting.
5- There should be a customer care helpline related to the use of J. K.
products.

6- Packaging of product should be more attractive and effective

to protect from moisture.

7- Keep working on quality of their product by latest technology.

8- In white cement segment only two brands are in market. So


organization must be more aggressive in creating the brand of
products.

9- More effective relation with distributors and retailers because in this of


product these are main tool of selling the product and telling the
people about the product.

10-Professionals/Painters provide more knowledge regarding the product


quality and applying method.
Limitation

➢ People generally do not want to participate in survey.


➢ Some people give rude response.
➢ People were not ready to give all information which was related with survey.
➢ Some people did not tell their phone/mobile no.
➢ Lack of technical knowledge of end users.
BIBLIOGRAPHY

1: www.jkcement.com

2: www .jk-white.com

3: www.google.com

4: www.wikipedia.com
Suggestion to the Company
I, Mohit Shukla doing summer training in your esteem Organization during
summer training, have done retailer survey of “J.K. White Cement” and “Wall
Putty” in Lucknow Region.

I found that there is need of promotion techniques in most of the places in


Lucknow ,here is no any hoardings, wall paintings, boards as compare to leading
competitor ”Birla ”.

There is a need to apply the strong and effective promotion technique. In so


many areas respondents said that they do not get J. K. products in retail shops.
Following suggestions may some worth to increase and exploit the market potential
existing in these areas,

• Need to supervise them periodically by seniors.


• Make sure the quality of delivery.
• Make sure availability of products in far rural areas timely.
• Recognize and list all the potential painters from rural as well as urban
areas and add them in Painters’ Meeting list at Block Level.
• Need to increase the “Painters’ Meeting” frequency from one to
three times annually.
• Inform the painters for meeting at least 15 days in advance.
• Improved packaging of the bag.
• Provide Training to use of J. K. Products and give them training
certificate and I. d. card from the organization at regional level.
Which will help in marketing the products among the applicators of the
products
Limitations

There is very low price arbitrage in the dealings of Dealers and Retailers.

The rate at which consumer purchase the cement from the dealers retailer are also
bound to purchase the products at the same rate.

This causes a very complex situation for the retailers as consumers directly
approach to dealers for purchase instead of retailers. This adversely affects the
business of retailers and their business fall down.

This causes a break in the chain of dealer to retailer to consumer and retailer switch
over from the chain as consumer directly to dealers.
BIBLIOGRAPHY

• Marketing Survey of end users.

• Google.com

• www.jkcement.com

• www.mamm.com

• www.ask.com

• Word of Mouth

• User and non-user


APPENDICES

Analysis Consumer Behavior of J.K. White Cement and J.K.

Wall Putty in Lucknow region

Questionnaire:

Name of Respondent: ……………………………………………………………………….

Address: ……………………………………………………………………………………………

Age: …………………………………………………………………………………………………..

Contact No: ………………………………………………………………………………………


____________________________________________________________

Q-1. Do you know about white cement?

(a) Yes (b) No.

Q-2. What do you think that white cement is better than lime?

(a) Yes (b) No.

Q-3. Why is better than lime?

(a) Price (b) Durability (c) Strength


(d) Whiteness.

Q-4. Trough which medium you get the information about J.K. white
Cement?

(a) Pamphlets (b) Advertisement (c) Professionals/Painter


(d) Retailers

Q-5. Have you ever used this product?

(a) Yes (b) No.

If No, than please mention the reason.

…………………………………………………………………………………………………
……………………………………………………………………………

Q-6. Factors you like in J.K. White Cement?

(a) Whiteness (b) Strength (c) Price


(d) Availability.

Than how much point would you like to give from 1 to 10 ?

….

Q-7. Do you know about J. K. Wall Putty?

(a) Yes (b) No.

Q-8. Do you know any more wall putty other than J. K. Wall Putty?

(a) Yes (b) No.

Q-9. Did you ever apply J. K. Wall Putty?

(a) Yes (b) No.

Q-10 Trough which medium you get the information about J.K. white
Cement?

(a) Pamphlets (b) Advertisement (c) Professionals/Painter


(d) Retailers

Q-11. Factors you like in J.K. Wall Putty?

(a) Price (b) Durability (c) Strength

(d) Whiteness.

Q-12. How is your experience with J. K. Wall Putty?


(a) Good (b) Better (c) Best.

Than how much point you would like to give from 1 to 10? ……….

Q-13. Are you satisfied with J. K. Wall Putty and White Cement?
(a) Yes (b) No.

Any Suggestion from your side.......................................................

………………………………………………………………………………………………………………………..

By MOHIT SHUKLA

Integral University

Lucknow. Respondent’s signature:………………………….


J.K. White Cement

request a
quote
J.K. White Cement