j.k.cement price analysis of various cement brands

8/3/2019 j.k.cement Price Analysis of Various Cement Brands

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Jitendra

Virahya

[email protected]


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A

Project Study Report

On

Training Undertaken at

J.K.CEMENT

PRICE ANALYSIS OF VARIOUS CEMENT BRANDS

Submitted in partial fulfilment for the

Award of degree of

Master of Business Administration

Submitted By:- Submitted To:-

hhhh

MBA 2nd Year (HOD)

APEX INSTITUTION OF ENGG. & TECHO.DEPARTMENT OF


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MANAGEMENT (2007-2009 )

PREFACE

The objective of this project to evaluate the product and study the behaviour of Marketing

and its enormous study in India specially in jaipur

Indeed this gives us a useful insight about the marketing strategy of this industry. Some interesting

factors were gathered during the survey in jaipur

were proved to be very useful in understanding the working of any organization and the

other aspects, which decides the successful working of an organization.

I sincerely believe that this research will be useful to the organization and others as well.

J.K.Cement Works


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ACKNOWLEDGEMENT

At the outset, I am thankful to management of JKCW for permitting me to pursue thesummer training and kind approval to take up the project.

The credit for the successful completion of our project mainly goes to Mr. D.

RAVISHANKAR, PRESIDENT (Chief executive, lead plant) I wish to express my sincere

gratitude DR. K DADHICH, DGM (marketing),for creating a critical examination of summertraining topic

PRICE ANALYSIS OF VARIOUS CEMENT BRAND IN CHITTORGARH REGION

I Would also like to thank MR. R.P.SINGH (GM-HRD&RTC) & Mr. SHAILENDRA SHARMA

(ASST. MANAGER) RTC, NIMBAHERA and all the staff member of J.K.cement works (Raj.)

& RTC, NIMBAHERA, my parents and my friends without whose help this report would be

incomplete.

I also pay my sincere gratitude to my friends who inspired me and guided me in completing

this task.

-------------------------------------


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TABLE OF CONTENTS

1. THE INDIAN NORTHEN CEMENT INDUSTRY

2. INTERODUCTION TO THE ORGANISATION

3. RESEARCH METHODOLOGY

3.1 TITLE OF THE STUDY

3.2 DURATION OF THE PROJECT

3.3 OBJECTIVE OF STUDY

3.4 TYPE OF RESEARCH

3.5 SAMPAL SIZE AND METHOD OF SELECTING SEMPAL

3.6 SCOPE OF STUDY

3.7 LIMITATION OF STUDY

4. FACT AND FINDING

5. ANALYSIS AND INTERPRETATION

6. SWOT ANALYSIS

7. CONCLUSION

8. SUGGESTION

9. APPENDIX

10. BIBLIOGRAPHY

CEMENT INDUSTRY IN NORTHERN INDIA

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 Indias 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


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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.

Second largest 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 Indias 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:

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


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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 notrequired 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 (Sarvashaktimaan), 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


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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 ourrelationships with our dealers, enables us to maket 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


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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.


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INTRODUCTION TO THE COMPANY

OVERVIEW OF J K CEMENT WORKS

1.1 HISTORY BEHIND J K CEMENT

The initial "J.K." stands for a father- son team, namely: Juggilal Kamlapath Singhania

J .K. organization started in the year 1884 at Calcutta. J .K. started their business as

a Financier, Investor, Trading Supplier of cotton belts and manufacturer of small

machinery parts like V' belts, etc. They established few small cotton textile industries

also.

In the year 1914 they shifted their business from Calcutta to Kanpur where they

established many big industries like J.K. cotton Mills, Straw product Co, Lohia Mach,

J.K. Pulp and Raymonds Woolen, etc.

In the year 1934 J.K. organization started one more division, as J.K. Synthetics Ltd.

They established various big plants of Nylon, Acrylic fiber, etc. at Kota and Tyre Cord,

Chemical and Pesticides at Jhalawar.

In the year 1974 under the same division one more unit was started formanufacturing of Grey Cement at Nimbahera.

The present cement factory was commissioned in the year 1974. The plant started its

production from 27th Dec 1974.


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Ist plant / kiln was commissioned in 1974 and the capacity of this plant was 900 tons per

day and 3 lakh tons per year. After modification in Preheater, its present capacity is 1200

TPD.

Expansion of this plant took place in the year 1979, when 2nd kiln was commissioned

with a capacity of 1200 tons per day and 7 lakh tons per year. After modification in

Preheater its present capacity is 1800 TPD.

Again in the third phase, a kiln was erected in the year 1982 and production of this kiln

was 1350 tons per day.

consisted of precalcination process, which raised the capacity of this plant to 3400 tons

per day, which was earlier 1350 tons per day. In Aug.-2003 after again some

modification in Preheater and Folex cooler its capacity is increased to 5000 TPD.

Besides, J.K. cement plant is having its own diesel generator sets, producing power to

meet the power energy requirements.

Main raw material forcement is LIMESTONE, for limestone we have our own open cast

mines adjoining to the plant. Besides we have developed few more mines at Maliakhera,

Karoonda and Tilakhera for producing 10,000 tonnes limestone per day as needed.

J .K. Cement erected one more plant from Jan. 2001 with the capacity of 1400 tonnes

per day at village Mangrol. In Nov.-2003 after modification in Preheater and installation

of Mechanical elevator its capacity increased to 2200 TPD.


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Due to power shortage as imposed by Ajmer electricity supply board J.K. established its

own Thermal Power Plant at village Bamania, near Shambhupura, which is generating

15 M.W. power every day, which is consumed by J.K. Cement Plant.

J K Cement also has a plant of 400TPD installed capacity of White Cement at Gotan,

Nagaur (Raj).

J.K. Cement has started the following projects:

Cement Project at Karnataka of over 5500 TPD and Thermal Power Plantof capacity 30MW.

Thermal Power Plant at Nimbahera of 22 MW.

Waste Heat Recovery Plant at Nimbahera of 15 MW capacities.

Bhumi Poojan of Dr Gaur Hari Singhania Technical University at Bhatewar, Udaipur.

J.K. cement is one of the most productive, cost efficient cement producing plant in the

country, a company, believing in corporate responsibility to society,

Integrity and fairness. The companys cement is sold under the J.K. Sarva Shaktimaan

brand name, enjoys good brand image and a price premium.

The following types of cements are produced by J K Cement Works.

(a) Ordinary Portland Cement (OPC)

(b) Portland Pozzolana Cement (PPC)

(c) Super Silicate Cement (SSC)

(d) Masonry Cement (MC)

J. K. Cement manufactures and markets cement and clinker for both domestic as well asexports markets.


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1.2 PRESENT CAPACITY AND PERFORMANCE

1.2.1 CLINKER PRODUCTION

Ist Plant / Kiln 1200 Tons Per Day (TPD)

IInd Plant / Kiln 1800 TPD

IIIrd Plant / Kiln 5000 TPD

IVth Plant at Mangrol 2200 TPD

Total Capacity 10200 TPD


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1.2.2 PRODUCTION ANALYSIS TABLE: IN TONS

Year Clinker Cement

2005-06 3170268 3511022

2006-07 2907196 3640823

2007-08 2917045 3765855


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1.2.3 FINANCIAL ANALYSIS: IN Rs. / Crores

YearTurnover

PBT

2005-06 1108.7 52.2

2006-07 1529.7 272.0

2007-08 1812.8 346.6


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2. MANAGEMENT SET- UP

2.1 Corporate Level- Kanpur

Chairman - Dr Gaur Hari Singhania

Managing Director - Shri Y P Singhania

Group Executive President - Shri R G Bagla

2.2 Unit Head Level- Nimbahera

President - Shri D. Ravishankar

J K Organization

J K Cement Ltd.

J K White Cement Works Gotan, NagaurJ K Cement Works (Grey Cement)

1. J K Cement Works, Nimbahera

2. J K Cement Works, Mangrol

3. J K Thermal Power Plant, Bamania

4. Projects-

J K Thermal Power Project, Nimbahera

J K Cement Project, Karnataka


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3.1 J K MARKETING ORGANIZATION

The Head office of Marketing Department of J K Cement Ltd. is at Delhi, which is headed by

Sr. V P (Marketing-Grey Cement) and Sr. V P (Marketing-White Cement). The White

Cement is sold all over India and the Grey Cement is sold in the States of Rajasthan, M.P.,

U.P., Haryana, Punjab, Gujarat and Delhi. With the commissioning of J. K Cement Project,

Karnataka Southern region will also be covered for Grey Cement.

3

.2 Regional Training Centre

The Regional Training Centre - North is a premier training centre of North India promoted

with assistance from World Bank, DANIDA and Govt. of India as a unique HRD project in

Cement Industry is also attached with J K cement Works as Lead Plant. It is equipped with

modern training aids and caters to the skill enhancement and competency developmental

needs of more than 20 cement and other plants. It has trained over 5000 technical and

managerial personnel during the last 12 years.

The centre has conducted many tailor-made in-house programs for cement and other

industries in India and abroad including for Oman Cement, Oman and Star Cement, Dubai.

RTC has specialized packages / modules in Mining, Process, Maintenance disciplines like

Operation & Maintenance of HEMM / Gear Boxes / Pumps / Compressors / Electrical &

Electronics Equipments / Energy Conservation / Environment Management and Machinery

Alignment, etc. designed and developed by renowned International / National agencies like

FLS Denmark, NCCBM, TATA Interactive Systems, VEC, NITTTR, etc. More than 100

senior line mangers from ten plants have been trained at Denmark, NITTTR, Bhopal and

Chennai, who act as resource persons for these programs. Besides, OEMs and

management experts of national repute are invited for various technical and management

programs to make them effective and gainful experience for the participants.


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4. SOCIAL RESPONSIBILITY

Educational services:

Construction of rooms in Govt. College at Nimbahera.

Running JK Institute of Technology, ITI in five trades affiliated to NCVT.

Running 10+2 CBSE affiliated school

Running Regional Training Centre for Cement technocrats aided by WB & DANIDA.

Various constructions in nearby govt. Schools of Chittorgarh district.

We are involved in girls school (under construction) and committed reasonable

financial contribution for above

Medical services

Rs. 36 lacks contribution for the construction of govt. Hospital at Nimbahera.

Ambulance to govt. Hospital.

Free facility of pathological laboratory for the persons of surrounding area.

Financial contribution to various NGOS for medical camps in the district.

Financial contribution for construction of dispensary & health centre in nearby

villages.

Free Homeopathic consultancy/medicines for the patients of nearby area.

Religious services

Radhakrishna temple at colony premises.

Prayer hall in hanuman temple in Nimbahera.


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Bheemkeshwar temple in staff colony.

Dharmashala at Bhanwarmata (tourist/ religious place).

8 rooms for Dharamshala at Pashupati Nath temple in Mandsaur (M.P.).

Various temples in number of nearby villages.

Sports services

Sports infrastructure like wooden badminton court, table tennis court, billiard room,

and cricket ground, volleyball ground in colony campus.

Sponsoring all India youth football, volley ball and badminton tournaments.

Sponsoring inter-district tournaments.

Arranging summer camps for various sports.

Other social services

Construction of approach roads in and around villages of mining area.

Digging of tube wells.

Supply of tube well pumps.

Construction of water tanks.

Supply of drinking water in tankers in nearby needy places during summer.

Regular plantation in plant, colony and nearby villages.

Direct and indirect employment to thousands of persons of surrounding area.

Financial helps to NGOS.

Financial aid to organize religious festivals by municipal board.


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5. POWER & STRENGTH

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.


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MANUFACTURING PROCESS

CEMENT:-

1. Mining

2. Crusher, Stacker & Reclaimers

3. Grinding

4. Kiln System

5. Packing Plant

6. Quality Characteristics of Cement


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MANUFACTURING OF CEMENT:-

There are three production lines involving five significant manufacturing stages, namely

crushing, raw meal grinding, clinkerisation, cement grinding and packing.

At crushing stage, run of limestone mines is crushed to desired size so as to achieve

optimum grinding efficiency in the Raw Mills. Crushed limestone is stacked by stacker in astockpile and reclaimed by means of a reclaimer. The stockpile serves as a buffer stock

storage. Partial quantity of laterite & bauxite is also added during crushing.

In Raw Mill, crushed limestone with late rite is fed through weigh feeders. The feed quantity

and ratio of feeds are controlled based on the chemical analysis results from QCX (X-

ray)/Laboratory. The raw material is ground in ball mills and the fineness (residue) is

controlled by separator damper control. The raw material is also ground in VRM where

fineness is controlled by separator's speed. The ground raw meal is blended for

homogeneity and stored in raw meal storage silo or in C.F. Silo.

Clinkerisation is the heart of cement manufacturing process, where the raw meal is fed to

the preheater at controlled rate through electronic weigh feeder and/or solid flow meters.

The feed enters the kiln through cyclones (for Unit I, II) and through Precalciner (for Unit III)

and the fuel is fired at the kiln outlet end (also in precalciner for unit -111). The counter

current of hot gases against the material flow right from preheater stage to kiln outlet

converts raw mix to clinker by pyroprocessing stages like calcination and clinkerisation. Theclinker is cooled in coolers.

Clinker is transported to clinker yard for storage. Clinker and gypsum are thereafter ground

to a specific fineness in bqll mills to produce final product i.e. Cement. The blaine (fineness)

of cement is controlled by separator's speed in close circuit grinding and by mill fan damper

opening during open circuit grinding.

Cement is transported to cement silos for storage. Cement is drawn from cement silos

for packing in bags by mechanical rotary packers.


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1.1 DEFINITION OF CEMENT

Cement can be defined as any substance, which can join or unite two or more pieces ofsome other substance together to form a unit mass. Cement, as used in construction

industries, is a fine powder which when mixed with water and allowed to set and harden can

join different components or members together to give a mechanically strong structure.

Thus, cement can be used as a bonding material for bricks or for bonding solid particles of

different sizes (rubble masonry) to form a monolith.

1.2 HISTORY OF CEMENT

The history of cement is the story of civilization from primitive caves of pre-historic times to

the skyscrapers of the modern age. It is said that the use of cement is form the period of

use of fire. Egyptians utilized gypsum plaster as cementing material as early as 3000

BC building their monuments.

However, It was in 1824, sixty-eighty years after the discovery of hydraulic properties of lime

Joseph Aspdin patented his product, which was called "Portland Cement" The plants

manufacturing portland cement outside England were commissioned in Belgium and

Germany in 1855. The interest that is evoked in the technology o f cement resulted in the

development of Rotary kilns in 1886.

Modern cement is the outcome of the combined research and development efforts of

chemists, technologists and architects. The cement technology is an offshoot of the overall

development in other industries, technology, constructional activities and knowledge and

the availability of raw material.


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1.3 TYPES AND USES OF CEMENT:

Types of Cement Application

Ordinary Portland Cement (OPC) General construction

Portland Slag Cement General construction and marine works.

Portland Pozzolona Cement

(PPC)

General construction, hydraulic construction & marine.

White Portland Cement Architectural purposes, decorative work and in

manufacturing of titles.

Oil Well Cement Connecting the steel casing to the walls of gas oil wells at

high temperature and to seal porous formations in

petroleum industry.

Low Heat Portland Cement Where low heat on hydration is required as in mass

concrete for dams.

Super Sulphated Cement In a varity of aggressive conditions like marine works,

concrete sewers carrying industrial effluents.

High Alumina Cement Mainly as refractory cement and as structural material

giving high early strength development in cold regions.


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1.4 RAW MATERIAL

1.4.1 Raw Materials-

Limestone (calcareous) and clays (argillaceous) are the conventional raw materials mostly

used in cement industry. Sometimes sandstone (siliceous),bauxite (aluminous) and iron ore

(ferruginious) are used, as corrective material to maintain desired composition for potential

property of clinker.

Cement manufacturing process involves-

Preparation of raw mix by crushing, grinding and blending of raw materials in definiteproportions.

Burning the raw meal at clinker temperature (14500C) in a kiln.

Grinding the resultant clinker to fine powder with certain amount of gypsum to regulate

setting of cement.

1.4.2 Types of Raw Material

It is known that raw meal feed for cement manufacture basically consists of two components -

Calcium carbonate

Alumino silicates

Due to depletion of cement grade limestone, it is necessary to go in, more and more, for

byproducts and waste materials of chemical, metallurgical, coal and other industries as raw

material for cement manufacture.

1.4.3 TECHNOLOGICAL ASSESSMENT OF RAW MATERIAL

Raw materials are characterized by

(a) Chemical composition

(b) Mineral composition

(c) Physical composition

(d) Mechanical characteristics

Composition of Ordinary Cement:

Ordinary Portland Cement is the basic cement and it has three grades namely 33, 43 and 53


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respectively. Limestone is the principal raw material for the manufacturing of cement. Our

country has enough reserve of raw material needed in the cement industry. Cement

consumption growth is highly correlated to the GDP growth and serves as a leading indicator.

More industrial activity and greater purchasing power means more asset formation and

construction and thus more consumption of cement.

IngredientPercentage Range

Lime 64 64-68

Silica 22 17-25

Alumina 5 3-6

Calcium sulphate 4 3-5

Iron Oxide 3 3-4

Magnesia 2 0.1-3.0

Sulphur 1 1-3

Alkalise 1 0.2-1.0


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1.5 TYPS OF PROCESS

Basically there are two types of process for cement manufacturing that is -

Hydro Processing (Wet Process)

Pyro Processing (Dry Process)

We are using Pyro Process in JK Cement Works

1.5.1 PYRO PROCESSING

In order to manufacture cement from the raw mix, it is required to heat raw meal to a

temperature of 1450OC, thus carrying out SINTERING OR CLINKERISATION. The burning

process requires an oxidising atmosphere in the kiln, as in the opposite case a clinker of

brown colour (contrary to the normal greenish grey) will be formed and the resulting

cement will be quicker setting and with lower strength.


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1.5.2 Chemical Transformations

During heating of the raw meal to the burning temperature 1450oC (clinkerization or sintering)

certain physio-chemical processes take place. These include:

Dehydration of the argillaceous minerals; decomposition of the carbonates (decarbonisation or

expulsion of CO2 commonly known as calcination); reactions in solid phase and reactions with

the participation of one liquid phase and crystallizations.

These processes are influenced by chemical factors in the raw meal (such as its chemical

composition), by mineralogical factors (its mineralogical composition), by physical factors

(fineness or particle size in the raw meal), homogeneity and other factors. The complete

course of these endothermic reactions plays a decisive role in quality of the resulting cement.

In per-heater kiln, the first five transformations shows in figure 4.1 will take place in pre-

heater tower. The decomposition of limestone and other carbonates will primarily take place

in the calciner vessel where the calcination temperature is maintained by injection of fuel.

The last two transformations will take place in the rotary kiln.

The carbonate Ca CO3 decomposes between 600 800OC to form CaO. Quartz and clay will

have started decomposing slightly before that to liberate free reactive Al2O3 and SiO2


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CaO to form C3S. Some CaO will also react with Al2O3 and Fe2O3 to form various

intermediate components such as CA, C12A7 and others, which will decompose at higher

temperature at later stage.

C2S content is seen to grow steadily during the heating and reach maximum content atapprox. 1300OC which is a point where liquid phase appears. The major part of C 2S is then

transformed to C3S in the liquid phase and the final content of C2S in the clinker is less than

the content of C3S.


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The basic steps involved in the manufacture of cement are:

Mining

Crushing

Stacking and reclaiming

Raw material grinding

Raw meal storage & blending

Preheating and burning

Clinker cooling

Clinker storage

Clinker

grinding

Cement storage in silos

Packing & dispatch


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1 MINING

1.1 Function:

Planning and executing a systematic exploration programme.

Draw scope of drilling campaign. How to carry out survey and perform

drilling activities for exploration purpose.

Establish system for computerized mine-planning in order to ensure supply

of limestone with consistent quality.

Planning and executing drilling and blasting programme in normal course at site

to take optimum output from blasting as well as achieving economy in

explosive consumption.

(Approximate boulder size: 1.0 M * 1.4 M * 1.1M)

Loading and transportation of lime stone boulders to crusher site.

Implementing statutory requirement for safety and environment

Resources:

(a) Explosives

(b) Equipment:

Drilling Machines

Excavators / Shovels

Dumpers

Dozers

Loaders

Operations:

Drilling and Blasting

Loading and transportation


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2 CRUSHER, STACKER & RECLAIMER

2.1 CRUSHER

2.1.1 Purpose:

Size reduction from 1.0M * 1.4M * 1.1M boulder to 25mm size limestone pieces.

2.1.2 Common type of Crushers:

Double Toggle Jaw Crusher (Capacity: 400 TPH): Used as primary crusher.

Swing Hammer Crusher (Capacity: 200 TPH) used as secondary crusher.

Compound Impactor (Capacity: 800 TPH) combined unit of primary and secondary crusher.

2.2 STACKER & RECLAIMER

Purpose:

Homogenization of crushed limestone.

2.2.1 Stacker:

Type of Pile: Longitudinal.

Details of Piles: 20000 30000 tonnes per pile.

Height of pile upto 11.00 meters.

The stacker moves on longitudinal rails.


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2.2.2 Reclaimer

Type: Bridge Scrapper Type.

Rated Capacity: 600 tonnes per hour It will vary from plant to plant depending on theproduction requirement(in TPD).

Working Principle: Cuts Stack Pile in slice from parallel to face of pile. Shifting materia

(limestone) to belt with the help of scrapper.


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3 GRINDING

INTRODUCTION-

3.1 Materials used for grinding

Limestone and additives (Raw Mix)

Coal and other fuels

Clinker

3.2 Feed size of incoming materials

Limestone

25mm Size for Ball Mills

- 35mm Size for VRM (Segregated)

(Secondary Crusher is used to feed Ball Mills)

Coal 25mm size

Clinker 25 to 35 mm size.


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3.3 Fineness of output materials Raw Mix: 15 17 % Residue On 90 #

1.8 2.2 % Residue On 200 #

Coal Powder: 15 17% Residue On 90 #

8-22 % Residue On 90 #

(For use in Pre-Calciner, there is separate arrangement to grind coal)

Cement: 33 Grade 2600 To 2800 Blaine

43 Grade 2850 To 3000 Blaine

53 Grade 3200 To 3400 Blaine

3.4 Grinding Systems

Raw Mix:

- Ball Mill

- Vertical Roller Mill

- Combination of Roller Press and Ball Mill

(Generally open circuit is used in wet process and closed circuit is used in dry process. Inclosed circuit systems, fixed and dynamic separators are used.)

Coal and fuel:

Ball Mill

Vertical Roller Mill

(Closed circuit used)

Clinker Grinding:

Ball Mill

Combination of Roller Press and Ball Mill

(Open circuit and closed circuit used. In closed circuit systems, fixed and dynamic separators

are used.)


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3.5 Materials used for grinding

Limestone and additives (Raw Mix)

Coal and other fuels

Clinker

3.6 Grinding of Cement:

In a modern cement plant, the total power consumption is about 100 Kwh / tonnes whereas

cement grinding process accounts about 40%. The quality of final cement product depends on

operational mode and parameters of cement grinding plant.

Cement has to be ground fine enough to meet the requirements for strength properties

specified in current standards. As it takes quite long time to determine especially the late

strength, the hour to-hour and day to-day control of cement grinding has to be based on

cement fineness.

Strength development of concrete is the result of hydration of the particles. Smaller the

particles, larger the specific surface and faster the hydration. Particles coarser than 3050

microns hydrate very slowly and will only affect late strengths. On the other hand, superfine

particle with 2-3 micron size may hydrate before the concrete has been cast and will have

limited influence on strength development.


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4 KILN SYSTEMS

4.1 Purpose:

To transform Raw Mix into CLINKER through PYRO-PROCRESSING.

4.2 Sections of a Typical Kiln System:

KILN feed system.

Pre-heater (Four stage to six stage)

Pre-Calciner (ILC, SLC)

Kiln

Cooler (including Clinker Hammer)

Planetary Cooler

Grate Cooler

Type of Cement:

Grey Cement

White Cement

4.3 Processes:

Wet Process

Semi-dry Process

Dry Process


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5 PACKINGPLANT

5.1 Purpose:To pack cement in appropriate packages suitable for consumption at site.

5.2 Common packs available: Grey Cement:

50 Kg bags

Bulk handling of cement has started at selected places e.g. bulk-handling project near

Mumbai by ACC.

White Cement:

50 Kg and small size packs as per market demand.

5.3 Packers:

Mechanical Packers

Electronic Packers


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6 QUALITY CHARACTERISTICS OF

CEMENT

6.1 INTRODUCTION:

The survival and well being of the cement plants / companies in the market depends upon the

quality of product and its cost. Quality and cost together define the value of the product (i.e.

cement in this case). The concept of quality has undergone a sea change from mere quality

control of the product to total quality management (T.Q.M.) with emphasis on quality defined

as totality of features and characteristics of product / services that bears on its ability to satisfy

the stated and implied needs.

The quality of the product depends on variety of factors such as technology, quality of raw

materials and fuels, operation and quality control procedures to produced consistent product.

The broad quality parameters of cement relate to chemical and physical properties as per IS Code are as

mentioned below:

6.2 CHEMICAL PROPERTIES:

Loss on ignition [LOI]

Insoluble residue [IR]

Sulphur trioxide [SO3]

Magnesium oxide [MgO]

Total chloride [Cl]

Lime saturation factor [LSF]

Alumina modulus [AM]


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6.3 PHYSICAL PROPERTIES

Fineness

Consistency

Setting time initial and final

Soundness

Compressive strengths (3 days, 7 days and 28 days)

Heat of hydration

Drying shrinkage [for PPC]


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1.1 Indian Cement Industry

1.1.1 Current scenario

Due to a booming housing sector, increasing demand and acceleration in infrastructure

development such as state and national highways, the cement industry is progressing ahead

briskly. The production capacity has been ramped up and many top cement companies of the

world are finding it lucrative to invest in this sector. Mergers and acquisitions are used to

achieve market share and growth faster.

Cement companies in India currently has an installed capacity of more than 174 million tonnes

per annum (mtpa). Large Cement plants account for nearly 93% of the total installed capacity

in India. The Indian cement industry comprises 130 large cement plants and 365 mini-cement

plants.

In January 2007, the capacity utilization has been crossed the mark of 100% for the first time

According to Cement Manufacturers Association (CMA), the average monthly capacityutilisation during fiscal 2006-07 was 94 per cent. At the same time, cement dispatches were at

the peak level at 155 million tonnes (mt), up 10% from the previous fiscal year.

Globally, India is the second largest producer of cement. However, though the Indian cement

industry is witnessing a major growth at this moment, India's per capita production of 115

kilograms per year lags the world average of over 250 kilograms and China's production of

more than 450 kilograms per person. The per capita consumption of cement in India is

approximately 150 kilogram per annum, which is less than one-third of China's per capita

consumption. This provides a considerable opportunity for the producers and the investors

alike.The structure of the Indian cement industry is highly fragmented. Majority of the cement

production is dominated by large players like Ambuja cement, Aditya Cement, J K Cement and

L & T cement. The fragmented structure occurred due to low entry barriers in the pos

decontrol period and the ready availability of technology. However, cement plants are highly


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capital intensive. Apart from meeting the entire domestic demand, the country is also an

exporter of cement and clinker to other countries in the world.

Lot of consolidation and reorganization has taken place in the Indian Cement Industry in the

recent past. Some of the consolidation witnessed in the recent past includes Gujarat Ambuja

taking a substantial stake in ACC and Gujarat Ambuja taking over DLF Cements and Modi

Cement. India Cement took over Raasi Cement and Sri Vishnu Cement and Grasim's acquired

the cement business of L&T. ACC took over IDCOL.

Even the multinational companies have shown interest to be a part of one of the Indias fastest

growing sector. Swiss cement major Holcim has picked up 14.8% of the promoters stake in

Gujarat Ambuja Cements (GACL). In January 2006, Holderind Investments (Holcim Mauritius),

an indirect, wholly-owned subsidiary of Holcim, acquired 200 million equity shares of GACL at

a price of Rs.105 per share from the promoters. Holcim had entered into a strategic alliance

with GACL, and acquired a 67% controlling stake in Ambuja Cement India. Through this

holding company, Holcim acquired a majority in Ambuja Cement Eastern and a substantial

stake in ACC. Ambuja Cement India holds a 42.69% share in ACC. As a result these foreign

companies are controlling more than 25 per cent of the market .


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PRODUCTION OF VARIOUS COMPANY IN 2006-07

State wise position


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1.1.2 Characteristics of Cement Industry

Cement is a homogeneous product. Most of its sales concern about half a dozen

commercial varieties, of which Portland cement(PPC) is by far the leader. No brand name

exists as differentiating product , so that one suppliers products can easily be substituted for

another. Cement is, however, an experience good; its quality is guaranteed by standards (BIS)

with which the supplier has to comply. These standards are often national but in most cases

the products of one country can easily be approved in neighboring countries. Standards

therefore do not constitute trade barriers as such, even if they may hinder trade.

The demand for cement is geographically widely dispersed and corresponds roughly to

population density. Although cement is an upstream industry, it differs from other basic

industries such as aluminium, steel or glass, for which demand id concentrated both

geographically and in terms of the number of customers. In the cement industry demand is by

contrast, dispersed in multiple zones of consumption, each of which comprises numerous

customers. Geographical factors thus determine the structure of the market.

Supply

Two economic considerations are important in structuring supply in a Market.

The trade-off between fixed costs and transport costs which, depending on the

economic size of the factories, gives an initial idea of the density of the network of

production units covering the territory, in relation to the density of demand

The level of investment costs and the life-span of facilities which determine the rigidity

and the duration of the network.

Major Demand Drivers

Present Demand drivers

Real Estate is the major demand drivers


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Economic growth

Industrial activity

Growth in mortgage business in retail housing

Higher surplus income of household

Roads ,Bridges construction.

1.1.3 Industry growth

India's cement production increased 11.2% during FY2006 to 141.81 mt. By comparison

production increased 8.6% during FY2005, and 5.5% during FY2004. Production has

increased at a 3-year compound annual growth rate (CAGR) of 8.4%. On a decadal basis,

India's cement production increased at an annual average of 8.2% during FY1996-2006, as

compared with 6.9% during FY1986-96

During FY2006, after the slack of the monsoon season, cement production registered high growth since

October 2005. High growth in the cement sector reflected robust demand from the construction sector

and high exports.

As cement is a basic construction material with virtually no substitute, it is used worldwide for al

construction work. Thus, the growth in the construction industry has a direct relation with the production

and consumption of cement. GDP from the construction industry has grown at a high rate over the last

three years-12.1% during FY2006, 12.5% during FY2005, and 10.9% during FY2004. This has had a


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positive impact on cement consumption, which increased 10.1% during FY2006, as compared

with 8.1% during FY2005.

The increased growth in cement consumption since 2004 has had a positive impact of the

capacity utilization of cement producers. Capacity utilization increased from 76% in FY2002 to

around 90% in FY2006.

Installed capacity & utilization

EBI


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Indian cement market Profitable market

1.1.4 plant location strategy

Cement being a high bulk and low value commodity, outward freight accounts for close to one

fifth of the total manufacturing cost. In addition, for every tonne of cement produced, close to

1.7 tonnes of raw material (including coal) is transported. In this scenario, the location of the

cement plant becomes crucial. While deciding on the plant location, there is a trade-off

between proximity to raw material sources and proximity to markets. A split-location cement

plant can be a good compromise between the two options. The plant also has to address

issues of logistics (evacuation of cement by rail, road or waterways), power availability in the

region, and availability of materials (limestone, coal, slag, etc).

1.1.5 cement production

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


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1.1.6 product cement

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

development, and technology. As 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 specificationsofthebis

Some of the various types of cement produced in India are:

Clinker Cement

Ordinary Portland Cement

Portland Blast Furnace Slag Cement

Portland Pozzolana Cement

Rapid Hardening Portland Cement

Oil Well Cement

White Cement

Sulphate Resisting Portland Cement

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, aluminum, and silicon oxides. Among the


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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 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.A positive trend

towards the increased use of blended cement can be seen with the share of blended cement

increasing to 43%. There is regional imbalance in cement production in India due to the

limitations posed by raw material and fuel sources. The southern region is the most cement

rich region while other regions have almost same cement production capacity.

1.1.7 power generation & cost cutting

The Indian cement industry is about 90 years old and its main sources of energy are thermal

and electrical energy. The thermal energy is generally obtained from coal & pet coke, and the

electrical energy is obtained either from grid or captive power plants of the individua

manufacturing units.

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

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


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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 arecomparable with the best achieved in the world

The Pollution Control and environmental performance of the Industry is commendable, the

state-of-art plants achieved emission level of below 25 mg/Nm3.

Particulars

Ultratech

ACCGujarat

AmbujaShree

Capacity

Utilization (%) 89 93 100 114

Power Cons.

(Kwh/t)89 88 84 73

Power

Generation Cost

P/U

3.76 2.01 1.96* 1.94

Fuel

Consumption

-% of ClinkerNA NA NA 10.37


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Particulars ACC

Ultratech Gujarat

Ambuja

Shree

Cement

Raw material 388 212 219 260

Power & Fuel 518 683 530 393

Total Variable Cost 906 895 749 653

Freight & Selling

Expenses401 541 410 378

Annual 2005-06


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Competitor profile

S.N0 NAME

1 Shree cement(detail)

2 ACC Limited(Brief)

3 Ambuja Cement(Brief)

4 JK Cement Limited(Brief)

5 JKLakshmiCement(Brief)

6 Ultrarect(Brief)


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2.2.1 Shree Cement

Shree Cement Limited is a mong the top 10 cement producers in India. The company enjoys a

market share of about 11 per cent in north India. Over the years, Shree Cement has

established a reputation as one of the worlds most efficient cement manufacturers: one

its production has been consistently in excess of its rated capacity. Two, its per tonne

energy consumption is one of the lowest in the world. Three, it has a unique distinction of

operating both its cement as well as captive power plant on alternative fuel.

The BG Bangur family is the principal promoter of Shree Cement ltd. Shri H. M. Bangur is the

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

Shree cement ltd. is located at Beawar, 185 Kms. from Jaipur off the Delhi-Ahmedabad highway.

Presently Shree Cements has there units. Two units are at Beawar (incorporated in 1979 and1997) and

third unit is at Ras (Started in 2005). Two more units (at Ras and Khushkhera) are coming up to

enhance the capacity of the company to 10 mtpa from the present quantity of 3.2 mtpa by the yea

2010. The proximity to Delhi, Jaipur and Haryana, which are the most lucrative markets in the region

makes it a strategic location.


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LOCATION

Shree Cement Ltd. is an energy conscious & environment friendly business organization. Having Nine

Directors on its board under the chairmanship of Shri.B.G. Bangur, the policy decisions are taken under

the guidance of Shri. H.M. Bangur, Managing Director. Shri. M.K.Singhi, Executive Director of the

Company, is looking after all day-to-day affairs. The company is managed by qualified professionals

with broad vision who are committed to maintain high standards of quality & leadership to serve the

customers to their fullest satisfaction. The board consists of eminent persons with considerable

professional expertise in industry and field such as banking, law, marketing & finance.
http://www.shreecementltd.com/story_main.asp?storyid=Web200001shree2:54:59%20PM49&sitecode=shreehttp://www.shreecementltd.com/story_main.asp?storyid=Web200001shree2:54:59%20PM49&sitecode=shreehttp://www.shreecementltd.com/story_main.asp?storyid=Web2000075shree10:47:51%20AM101&sitecode=shreehttp://www.shreecementltd.com/story_main.asp?storyid=Web200001shree2:54:59%20PM49&sitecode=shreehttp://www.shreecementltd.com/story_main.asp?storyid=Web200001shree2:54:59%20PM49&sitecode=shreehttp://www.shreecementltd.com/story_main.asp?storyid=Web2000075shree10:47:51%20AM101&sitecode=shree


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Location Map

Shree Cement Unit I & II is located at Beawar, 185 Km. from Jaipur off the Delhi-Ahmedabad highway.

Amongst the plants in the state it is nearest from its marketing centers.

Bangur Cement Unit (III, IV, V & Vi) is lacated at RAS,28 Km from Beawar in pali Dist.

Shree Cement Grinding Unit (KKGU) is located at Khush Khera Dist. Alwar Nearest to Delhi.

Regd. Office & Works:

Shree Cement Ltd.

Bangur Nagar, Post Box No. 33 Beawar 305901

Rajasthan India

Corp. Office:

21, Strand Road, Calcutta- 700001.


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Figure 8: Capacity Enhancement at Shree Cement Ltd.


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Marketing Mix

Place

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.

Markets classification

Markets States

Primary Rajasthan

Secondary Delhi, Punjab, JK, Haryana, Western U.P. and Uttaranchal

Tertiary Gujarat, M.P. and Central U.P.

Table : Market Classification of Shree Cement Lt

Products

Shree manufactures:

Ordinary Portland Cement (OPC)

Red Oxide Cement (ROC)


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Its output is marketed under the Shree Ultra Ordinary Portland Cement and Shree Ultra Red Oxide

jung rodhak Cement brand names. The product today constitutes almost 37per cent of SCLs sales. It

has also launched Bangur Cement in recent past and a new brand Cemento has been introduced in

the market in April 07. The company positioned its brands around longer life (durability), emphasising

product longevity.

Shree manufactures:

Ordinary Portland Cement (OPC)

Red Oxide Cement (ROC)


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Promotion

Strong sales network of 28 sales offices, 1200 dealers and 4000 retailers,a very strong distribution

channel. Company mainly use its distribution channel for the promotion of the product. There is lot of

scope in promotion by advertisement where Shree cement is far behind with his competitors .

Price


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Company retail its products Rs 2 less than the competitors like Ambuja,Binani,Ultratech in the market

As the price of cement varies every day due to supply & demand of cement in market of all brands. The

variation in prices of different cement brand is not more then Rs 2-3(considering major plants).

Mining: Limestone being the predominant raw material, Shree Cement plants are situated nea

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

Captive Power Generation Shree Power: Shree Cements are self sufficient in electricity as they have

their own 45MW power generation plant. It has 2 x 18 MW and 1 x 6 MW units and one 2.5 MW unit. I

also has a line from State Electricity Department in case of emergency. Shree Power has resulted in

making Shree Cements self sufficient in its power needs and also lets it produce electricity at lower

costs which in turn translates into better bottomline.

Environment sustainability

First Indian Cement Company

- To join Cement Sustainability initiative (CSI) under World Business Council for Sustainable

Development (WBCSD)

- To issue a Corporate Sustainability Report (CSR)

- To have a structured Sustainability Policy

Member of Cement Sector Task Force of Asia Pacific Partnership on climate change.


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Appointed leader of Taskforce for Energy Efficiency in Indian cement industry by Ministry of

Power, GOI

Progressive Management: Shree Cement supplemented its attractively low capital investmen

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:


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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 Jungrodhak Cement and Shree Ultra

Ordinary Portland Cement have high consumer recall

Key Figures:

Particulars FY2005 FY2006 FY2007

Net Sales 5820 6694 13680

Operating Profit 1701 2123 6225

PAT 294.3 184 1770

Operating

Margin(%) 29.8 31.7 45.5

Net Profit Margin 5.6 2.7 12.9


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(%)

Table : SCL Key Figures (in Rs. millions)

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 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 in recognition of its excellent Environment Management

practices


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The Cement Sustainability Initiative Established in 1999, the Cement Sustainability Initiative is

a coming together of 10 leading international cement companies working in close association

with the World Business Council for Sustainable Development to sustain development.The

WBCSD, established in 1991, is a coalition of 174 international companies united by a shared

commitment to sustainable development through economic growth, ecological balance and

social progress. Its members are drawn from more than 30 countries and 20 industrial sectors.

It has a global network of 38 national and regional business councils and partner organizations

involving more than 1000 business leaders globally. "Shree Cement is the third Asian cement

company and the first Indian cement company to join the CSI movement.

The companys Mission -

The company continues to be one of the most operationally efficient and energy conserving

cements producers in the world. Its mission statement is:

To sustain its reputation as the most efficient cement manufacturer in the world.

To drive down costs through innovative plant practices.

To increase the awareness of superior product quality through a realistic and convincing

communication process with consumers.


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To strengthen realizations through intelligent brand building.

Business Ethics

Enforce good corporate governance practices.

Inculcate integrity of conduct.

Ensure transparency and credibility in communication.

Remain accountable to all stake holders.

Encourage socially responsible behavior.

Success Driver


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PEOPLE AS PROGRESS DRIVERS

Shree believes that what is present in the minds of people is more valuable than the assets on

the shop floor. All the companys initiatives are directed to leverage the value of this growing

asset.

TEAM WORK

Shree leverages effective team working to generate a sustainable improvement.

LEADERS AT EVERY LEVEL

Shree believes in creating leaders -not just at the organizational apex but at every level,

resulting in a strong sense of emotional ownership.

CULTURE OF INNOVATION

Shree believes that what is good can be made better -across the organization.

CUSTOMER FOCUS

Shree is committed to deliver a superior quality of cement at attractivelyaffordable prices.

COMMUNITY AND ENVIRONMENT

Shrees community concern extends from direct assistance to safe and dependable operations

for its members and the environment.

Five Force Model of Shree cement Ltd.


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Michael Porter described a concept that has become known as the "five forces model". This

concept involves a relationship between competitors within an industry, potential competitors,

suppliers, buyers and alternative solutions to the problem being addressed. We used the five-

force model as a basic structure and built on it with concepts from the works of many result

This model describes the problems and opportunities for the organization. It states the

competitive environment of the organization, which includes:


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MARKETING DEPARTMENT of J.K. cement

MARKETING DEPARTMENT SET UP

SALES DEPARTMENT SET UP


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SALES DEPARTMENT SET UP AND DISTRIBUTION WORK

SALES DEPARTMENT NIMBAHERA PLANT:-

V.P.(WORKS) AT NIMBAHERA PLANT

G.M.(WORKS)

D.G.M. (MARKETING)

Sr. MANAGER (MARKETING)

MANAGER (MARKETING)

DY. MANAGER (MARKETING)

ASST. MANAGER (MARKETING)


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Sr. OFFICER (MARKETING)

OFFICER (MARKETING)


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RESEARCH METHODOLOGY

1. RESEARCH OBJECTIVE

2. ADOPTED RESEARCH METHODOLOGY

3. WHY QUESTIONNAIRE(QUESTION DETAIL)

4.ANALYSIS


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TITLE OF THE STUDY

PRICE ANALYSIS OF VARIOUS CEMENT BRANDS

DURATION OF PROJECT

I express my sincere gratitude to towards JK CEMENT Company for giving me an opportunity

to undergo summer training in one of the leading Insurance institution of India.

I also take the opportunity to thank my project guides Mr. R.P.SINGH to provide me with

relevant insights to understand the project and guided at every step. Without his guidance and

undivided attention, the project would not have taken this shape.

I shall be sailing in my duty if I don't thank the staff and my faculty who extended their helping

hand at every stage of the project.

Last but not the least I would like to thank my colleagues for helping.

My summer Training duration is 01.07.2008 to 25.08.2008


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OBJECTIVE OF STUDY

THE RESEARCH OBJECTIVES :-

( i) To find out the brand performance of J.K. Cement in the market.

( ii) To find out the problems of dealers and retailers in the business with

this brand/company.

( iii) To find out the scope of expansion of business by providing more new

dealerships.


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TYPE OF RESEARCH

RESEARCH

Research in common parlance refers to a search for knowledge. One can also define research

as a scientific and systematic search for pertinent information on a specific topic. In fact

research is an act of scientific investigation. The advanced learners Dictionary of Current

English lays down the meaning of research as a careful investigation or inquiry especially

through search for new facts in any branch of knowledge. A careful investigation or enquiry

especially through search for new facts in any branch of knowledge.

It is an academic activity which contributes to the existing stock of knowledge, making for its

advancement. It comprises of: data collection, observation, comparison, interpretation and

findings. It refers to a systematic method of enunciating the problem.

Thus when we talk about research or research methodology we not only talk about research

method but also consider the logic behind it.


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RESEARCH DESIGN

It is a plan of action to be carried out in connection with the research project. It is the guideline

for the researcher to enable him to keep track of his action and to know weather he was

moving in the right direction or not. It is the framework or

plan for a study that is used as guide in collecting and analyzing the data. It is the blue print

that is followed in completing a study. There are various types of research with its pros and

cons. Each is meant for its specific purpose. Hence here in this project, I used the descriptive

type of research.


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SAMPLE SIZE AND METHOD OF SELECTING SAMPLE

Sample size Total 44

Sampling units jaipur

Sampling procedure Judgement sampling

Research design Exploratory

Data collection method Survey

Research instrument Questionnaire

Type of questionnaire Structured

Type of question Close and open ended

Area covered Dealers, Retailers and contractor


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SCOPE OF THE STUDY

A big boom has been witnessed in Cement Industry in resent times. A large number of new

players have entered the market and trying to gain market share in this rapidly improving

market.

The research was carried on in Nimbahera. I had been sent at one of the branch of JK

CEMENT where I completed my Project work. I surveyed on my Project Topic Price analysis

of the various cement Brands on the visiting customers of the Nimbahera Branch of JK

CEMENT.

The study will help to know the preferences of the customers, which company, mode of

investment, option for getting return and so on they prefer. This project report may help the

company to make further planning and strategy.


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LIMITATION OF STUDY:

The research conduct was limited to chittorgarh region only.

Due to time constraints, more time could not be devoted to individual respondent.

Due to unwillingness of providing any information, the respondents filled the

questionnaire casually which might have effected the conclusion.

Marketing manager being busy with his job. He was not able to spare enough time for

our proper guidance.

A busy schedule of dealers / retailers also makes the collection of information a very

difficult one.

Full district was not covered as this is very tedious job to be done in 7 days. However

almost all main areas of the district were covered.

The projections are purely based on verbal meetings and may be influenced by

unprecedented factors.

Non cooperative behaviour of the respondent was a big problem in this survey.


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FACT AND FINDING

Good brands image of J.K. cement in existing market.

Low sales as compared to market potential, which is around 27 % of the total market.

Birla, Binani and Bangur have maximum market shares viz.

Less advertisement of the product as comp aired to other company.

Lack of self enthusiasm in working patterns of executives.

Improper communication between executives and dealers and other parties.

No facility for removal of companies from the side of dealers / retailers on time.

There is a need of a depot at chittorgarh for timely delivery.

There is a complaint from the side of retailers is that dealers deal customer directly and

sell cement on lower price, due to this customer does not go to retailers and purchase

from dealers. Thus the retailers are not interested to keep stock of J.K. cement.


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ANALYSIS & INTERPRETATION OF THE DATA

PRICE ANALYSIS AND DISCOUNT RATE OF VARIOUS CEMENT BRANDS :-

0

50

100

150

200

250

J.K. BIRLA BINANI BANGUR

COMPANY PRICE

WHOLE SALES PRI

CASH DISCOUNT

COMPANY PRICE

WHOLE SALES

PRICE CASH DISCOUNT

J.K. 206 202 4

BIRLA 210 205 5

BINANI 203 200 3

BANGUR 202 200 2


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SALES PROMOTION AND ADVERTISMENT STATUS OF VARIOUS CEMENT

BRANDS IN CHITTORGARH REGION :-

J.K.

BIRL

A

BINA

NI

BANG

UR

SALES

PROMOTION

0%

20%

40%

60%

80%

SALES

PROMOTIONAVERSTISME

SALES PROMOTION AVERSTISMENT

J.K. 36% 15%

BIRLA 80% 65%

BINANI 66% 60%

BANGUR 58% 52%

% STATUS

0-25 POOR

25-50 GOOD

50-75 VERY GOOD


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MARKET SHARE OF VARIOUS BRANDS IN CHITTORGARH REGION :-

Sales

J.K.

BIRLA

BINA

BANG

OTHE

BRAND Sales

J.K. 30%

BIRLA 40%

BINANI 20%

BANGUR 7%

OTHERS 3%


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S :- STRENGTH

W :- WEAKNESS

O :- OPPORTUNITY

T :- THREATS


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SWOT ANALYSIS

S STRENGHTS

J.K. Cement possess good brand image in the existing market which is definitely

a part of pavement brick for it.

Location has always been an important factor in Rajasthan extensive

(about 2500 MT) of cement grade limestone available.

Older plant has well known brand name in market.

Good plant having 10,000 tones per day.

W WEAKNESS

Low sales as compared to market potential. The market potential of the Udaipur

market is high but as compared to it the sales of J.K. Cement is low.

Lack of self enthusiasm in the working pattern of the executives as a result the

aggressiveness towards sales is low.

High complaints of quality deterioration in J.K. super brand.

Less advertisement and negligible sales promotion schemes as compared to

other brands.

Monopoly of dealers is affecting the sales.


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O OPPORTUNITY

Exposure of quality, which is already god but not displayed in market.

More advertisement.

Competitive prices.

Making good dealers and penetrate the market up to retailer level.

May increase the discount and margin structure for the retailers and dealers.

T THREATS

Some dealers are available at present, which were not reputed / efficient.

Other companies advertising policy.

Price fluctuation and price war which is general phenomenon in this cement

industry.

Quick available / supply of other cement industries are creating for J.K. Cement.


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C ONCLUSION

Cement is still a selling product in country like India. It is the company who has to find the

market and go the prospect rather then the client directly approaching to the company. The

opening up of the sector has also resulted in stiff competition as many private companies are

entering in. so it becomes very important to be the best out of the market . this , the company

can achieve by offering value added services to the customers by giving them maximum

benefits. Company is trying to given more assured returns to the investors. Mostly products are

based on the NAV or they unit Linked so awareness, knowledge and brand image of the will be

product the first priority for the company.


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SUGGESTION

A company would b wise to measure customer satisfactions regularly the key to

customer retention is customer satisfaction.

Company can increase the role of the retailer by considering their suggestions or

complaints about service or product, so that necessary action can be taken.

Review meetings should be often held so that the working pattern of the executives canbe checked and improved if needed.

Executives need to be more self-enthusiastic and aggressive towards sales for these

appraisals should be gives to those executives who worked hard.

Company representatives should visit retailers and should make a long term

relationship with the retailer so that they can push the product.

Since customer are value maxi miser and their expectation to this brand is high, as the

brand image shows their complaints should be attended immediately to make then

remain brand loyal.

It should be checked that the non- trade consignment is not sold in the market, so that

is does not disturb the retail price of the market.


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Since transportation forms the major part of the cement cost, market potential of the

region should be properly accessed so that emphasis can be more on high retention

zone, which can be done by employing more authorized retailers.

Stockiest should be convinced to pass the incentives to the retailers so that they are

motivated to promote this brand.

Company should increase the promotional and advertisement activities for giving thepopularity to the product.

Company should set the policy on pricing. There should be certain time period for

increment and decrement in the pricing. Company should also give the prior information

for this to dealers and retailers.

There should be proper loading facility in the plant and out side the plant, delivery of

goods should be on time.


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Top management and executives should maintain proper communication with dealersand retailers.

Increase the number of dealers and retailers as this will help in making high sales

volume.

Cash discount should be competitive and luring.

Try to remove dealers monopoly.


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ANNEXURE

NAME:

CONTACT NO:

Q1. Which brand you prefer?

Q2. What you consider before purchasing cement?

Q3. Which brand is more sold among the customer?

Q4. What is your monthly turn over?

Q5. What are the reason to adopt the particular cement & Why?

Q6. Are you satisfied with companys service?

Q7. Which type of advertising do you feel is more effective?

Q8. Which companys sales promotion do you like?


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Q9. Do you think it is fruitful?

Q10. Are you satisfied with your brand?

]

Q11. Which company provides maximum discount rate?

Q12. Do you feel any change in J.Ks discount structure?

Q13. General problem faced by you in this trade?

Q14. Are you interested to take dealership of J.K. Cement?

Q15. Would you like to give any suggestion?


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BIBLIOGRAPHY

Following sources were undertaken in completing project report:-

BOOKS:-

Marketing management Kotler Philip

Principles of marketing Kotler Philip

Making marketing work Garld earls and Patrick Forsyth

Business research method Cooper and Schindler

Marketing research Beri G .C.

Statistics Gupta S.C

Cement journal of CMA


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WEB:

1. www.JKCEMENT.com

2. www.JKWHITE.com

3. www.REDIFF.com

4. www.india-today.com

PUBLICATIONS:

1. Business Standard

2. The Hindu

Jitendra
http://www.rediff.com/http://www.rediff.com/


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Virahyas

[email protected]

j.k.cement price analysis of various cement brands

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