position of various cement brands in district

7/29/2019 Position of Various Cement Brands in District

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EXECUTIVE SUMMARY

While working with Jaiprakash Associates during my 6 weeks summer internship I came to know

about various aspects of marketing and various process that occurs in marketing/sales department.And I suppose sole aim of marketing is to create satisfied customers and selling more to more number

of people, more often at higher prices.

The Jaypee Group is an Indian conglomerate based in Noida, India. It was founded by Jaiprakash

Gaur which is involved in well diversified infrastructure conglomerate with business interests in

Engineering & Construction,Power, Cement, Real Estate, Hospitality, Expressways, Sports &

Education (not-for-profit).After getting the opportunity to undergo my 6 weeks summer training in

Jaiprakash Associates Ltd. I carried out my project Position of Jaypee cement VS Competitors &

suggestion to improve further .

I spent the first week in getting knowledge about the company profile, got the product knowledge

from companys marketing department followed of various function and knowing how to find the

target customer (Dealers, Sub-Dealers& Retailers).

The remaining time I spent in studying, analyzing and finding potential for Jaypee cement brand and

other competitive brand in the Mohali district segmented market (area wise segmentation).My product

was Cement and my aim was to search the Market Potency of particular brand, to find out which

brand is most preferable in the market, and develop a strategy to increase the market share.

My products cement complies with IS: 8112 -1989 for 43 Grade Ordinary Portland Cement and

surpassesIS:1489:1991, the laid down BIS standards for fly ash based PPC cement.

Features of my product are:

High Compressive Strength and rate of strength gain.

The superfine particles of cement provide great finish to the structure.

Cement provides unsegregated concrete of better integrity.

Impermeable concrete for durable construction.

Resistant under aggressive environment even in coastal areas.

Resistance to corrosive attack on steel reinforcement.

Resistant to lime leaching.

Low heat of hydrationCrack less construction.

Reduces shrinkage and swelling.

Beneficial effect on workability due to spherical shape of particles and their high fineness.

We categorize target customers by Cement Company as Dealer, Sub-Dealer, and Retailer etc


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During the Industry analysis I have found that in the last ten years cement sector has recorded a

CAGR of 8%,against the world cement industry average of 3.5% and Chinas cement industry growth

rate of 7.2%. Today this industry not only outshines that of developed countries such as US and Japan

but also has become the second largest cement producer in the world after China.

The growth of cement industry has been trajectory in fashion over the past ten years. Domesticcement demand growth has surpassed the economic growth rate for the past three years. Cement

demand in the country grows at roughly 1.5 times the GDP growth rate. According to CRISIL

industry is expected to grow at a CAGR of around 8 percent in the next five years.

The key drivers for cement demand are real estate sector, infrastructure and industry expansion

projects.

Among these real estate sector is the key driver of cement demand. The demand for cement is closely

related to the growth in the construction sector. Consequently, cement demand has been posting a

healthy growth rate of around 8 per cent since 1997-98, propelled by the increased thrust on

infrastructure development, and the higher demand from the housing sector and industrial projects.

Cement being a bulky commodity cannot be easily and economically transported over long distances.

This makes cement a regional market place, with the nation being divided into five regions. Each

region is characterized by its own demand-supply dynamics.

With increase in infrastructure development activity with projects such as state and national

highways, and global demand has led Indian cement industry to increase their production capacity.

This in turn has attracted the top cement companies in the world to enter the Indian market and take

the advantage of growth in demand.

I have also done detailed financial analysis of Jaiprakash Associated Ltd. to understand the itsfinancial position.Since Jaiprakash Associates Ltd.


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INTRODUCTION & OBJECTIVES

Introduction to Jaiprakash Associates Ltd.

The Jaypee group is a Rs. 18,000 crore well diversified infrastructure conglomerate with business

interests in Engineering & Construction, Power, Cement, Real Estate, Hospitality, Expressways,

Sports & Education (not-for-profit). It is Indias third largest cement producer, the largest private

sector hydropower company with 1,700 MW in operation. The Group has successfully completed

projects in 18 states of India, and in Bhutan.The Jaypee Grouphas also been in the limelight after a

group staged Indias first Formula One race on October30, 2011

Introduction to Summer Internship Project

Todays successful companies share one thing in common: Strong customer oriented approach and

strong commitment to marketing.Marketing, more than any other business function, deals withcustomers. Marketing can be defined as a process to create satisfied customers at minimal cost.In my

Summer Internship project I had to develop suggestions for Jaypee cement targeting at increase in

market share by understanding the market place environment and delve deeper into market strategies

and tactics used by its competitors.

Introduction to Internship Report

In this report I tried to understand the cement industry on a whole i.e. its structure, political economic,

social and technical factors and also how hostile is this Industry for all companies in it.I have done the

financial analysis of Jaiprakash Associated Ltd.

Objectives

To understand the various processes of marketing and sales department and developmarketing strategy for Jaypee cement targeting at increase in market share.

To understand the structure of the cement industry. To know how various Political, Economic, Social, and Technological factors affect the

cement industry.

To know about the strengths & weaknesses of cement sector and the various opportunitiesand threats present in the industry

To do the financial analysis of the company.


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Company Profile

With a single mined focus to pioneer a myriad of feats in civil engineering, Shri Jaiprakash Gaur Ji,the founding father of Jaiprakash Associated Ltd. Acquired a diploma in civil engineering in 1950

from the University of Roorkee.After a stint with government of U.P he branched off on his own, to

start as a civil contractor in 1958 with the steadfast determination to contribute in nation building.

This has been possible with the active support of his honest colleagues such as Shri S.K.Jain, Shri

N.C. Sharma, Shri G.P. Gaur, Shri P.K Jainanad Young Generation Ably Headed By Shri Manoj Gaur

And Shri Sunil K. Sharma. Transforming challenges into opportunities has been the hallmark of the

Jaypee Group, ever since its inception four decades ago.

The Jaypee group is a Rs. 18,000 crore well diversified infrastructure conglomerate with business

interests in Engineering & Construction, Power, Cement, Real Estate, Hospitality, Expressways,

Sports & Education (not-for-profit).

The Group has always believed in growth with a human face and to fulfill its obligations it has Set

upJaiprakash Sewa Sansthan (JSS), a not-for-profit trust which primarily serves the Objectives of

socio-economic development, reducing the pain and distress in society For over 4 decades now,

Jaypee Group has supported the socio-economic development of the Local environment in which it

operates and ensured that the economically and educationally Challenged strata around the work

surroundings are also benefited from the Groups growth by Providing education, medical and other

facilities for local development.

The Group also undertakes Comprehensive Rural Development Programme (CRDP) which Covers a

wide range of projects such as free medical camps, health check-ups for village school Children,

literacy campaigns like Balwadis for young boys and girls, safe drinking water supply, Creating huge

water reservoirs in different villages, self-employment which includes tailoring Classes for women


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and animal husbandry. Some other important activities undertaken include. The renovation of old

temples, other schools and hospital buildings in the adjoining adopted Villages

Today the group is the 3rd largest cement producer in the country .The groups cement facilities Are

located in theSatna Cluster (M.P.), which has one of the highest cement production growth Rates in

India. The group produces special blend of Portland Pozzolana Cement under the brand Name Jaypee

Cement (PPC). Its cement division currently operates modern, computerized Process control cement

plants with an aggregate capacity of 22.80MnTPA. The company is in The midst of capacity

expansion of its cement business in Northern, Southern, Central,Eastern and Western parts of the

country and is slated to be 37.55 MnTPA by FY12 (expected) with Captive Thermal Power plants

totaling 672 MW.

The company is awarded with "National Safety Award" by the national safety council of India for

developing and implementing effective management systems.


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PROMISE

We remain committed, as a Group to strategic business Development in infrastructure,as the key to

nation building in the 21st century.We aim to achieve perfection in everything we undertake and we

have a commitment to excel. It is the determination to transform every challenge into opportunity; to

seize every opportunity to ensure growth and to grow with a Human face that drives us.

Jaiprakash GaurChairman

VISION STATEMENT

To be dynamic and vibrant responsive to the changing economic scenario: and flexible enough toabsorb Environmental and physical fluctuations. Harness and inherent strength of available human

resource and material have a capacity to learn from success and, more than anything else, ensure

Growth with human face

MISSION STATEMENT

Our solitary Mission is to achieve Excellence in every sector that we operate in - be it Engineering &

Construction,Cement, Real Estate or Consultancy. To augment our core competencies and adopt the

most comprehensive modern technology to overtake the obstacles in our path of achievement.Toobtain sustainable development and simultaneously enhancing the shareholders value and fulfilling

our obligations towards building a better India".


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Subsidiaries

The Jaypee Group operates through its various subsidiaries which are engaged in different businesssegments.

Jaiprakash Power Ventures Limited (JPVL)

The company with its operational power plants - 300 MW Baspa-II (Himachal Pradesh), 400 MWVishnuprayag (Uttarakhand) and 1000 MW Karcham-Wangtoo (Himachal Pradesh) is Indias largestPrivate sector Hydropower producer and is on its way to be an integrated power producer withexpansion in Thermal & Power Transmission.

Jaypee Arunachal Power Limited (JAPL)

The company is setting up two hydropower projects - Lower Siang Project (2700 MW) and theHirong Project (500 MW) in Joint Venture with the Government of Arunachal Pradesh.

Jaypee Power Grid Ltd.(JPL)

JPL has been formed for execution of the transmission system between Wangtoo in Kinnaur district ofHimachal Pradesh & Abdullapur in Yamuna Nagar district of Haryana for evacuation of 1000 MWpower from Karcham Wangtoo HEP in Himachal Pradesh.

Bhilai Jaypee Cement Limited (BJCL)

The Clinkerisation Unit of the split-located project of BJCL at Babupur, Satna was successfullycommissioned in December 2009. After completion of the project activities of the Grinding Unit atBhilai, on schedule, despatch of cement from this Unit has started from June 2010.

Gujarat Jaypee Cement & Infrastructure Limited (GJCIL)

GJCIL was incorporated as a Joint Venture between Jaiprakash Associates Limited (JAL) and GujaratMineral Development Corporation Limited (GMDC), inter-alia, to implement a 2.4 Million tones perannum capacity cement plant in District Kutch, Gujarat.

Bokaro Jaypee Cement Limited (BOJCL)

BOJCL, the second joint venture between the Company and SAIL with management control vested inthe Company, is incorporated to set up a 2.1 MTPA capacity cement plant at Bokaro in Jharkhand.

Jaypee Cement Corporation Limited (JCCL)

It is proposed to set up an integrated cement plant with a 3.0 Mn tpa cement grinding capacity alongwith 26 MW captive power plant at Shahabad Distt., Gulbarga, Karnataka.

Madhya Pradesh Jaypee Minerals Limited (MPJML)

A Joint Venture company between JAL and the Madhya Pradesh State Mining Corporation Limited(MPSMCL) to develop the Amelia (North) Coal block.


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Jaypee Infratech Limited (JIL)

A subsidiary of Jaiprakash Associates Ltd. which has undertaken the implementation of prestigiousYamuna Expressway Project comprising of 165 KM, 6 Lane Access Controlled expressway.

Jaypee Ganga Infrastructure Corporation Limited (JGICL)

JGICL a wholly owned subsidiary of the Company for implementation of the prestigious 1047 km,long 8-lane Access-Controlled Expressway connecting Greater Noida with Ghazipur- Ballia.

Himalayan Expressway Ltd. (HEL)

The Company will undertake the construction of Zirakpur-Parwanoo Highway connecting Punjab,Haryana & Himachal Pradesh on BOT basis. The total length of the highway would be 28.690 kms.

Jaypee Sports International Ltd.

Jaypee Sports International Ltd. is incorporated for developing a Greenfield state-of-the-art SportsComplex including Car Race track for motor sports with related integrated support infrastructureincluding townships, cricket stadium, go karting track and auxiliary facilities.

Sangam Power Generation Co. Ltd. (SPGCL)

SPGCL was incorporated by Uttar Pradesh Power Corporation Limited (UPPCL) for implementationof 3x660 MW Thermal Power Project in Tehsil Karchana of district Allahabad, Uttar Pradesh.

Prayagraj Power Generation Co. Ltd. (PPGCL)PPGCL was incorporated by Uttar Pradesh Power Corporation Limited for implementation of 3*660MW Thermal Power Project (with permission to construct two additional generation units of 660MWeach) in Tehsil Bara of District Allahabad, Uttar Pradesh.

Jaypee Meghalaya Power Limited (JMPL)

JMPL is implementing 270 MW Umngot HE Project in the Umngot river in the State of Meghalayaand 450 MW Kynshi- II Hydro-electric Power Project in the Kynshi River Basin of Meghalaya onBOOT (Build, Own,Operate and Transfer) basis.

Jaypee Agra Vikas Ltd. (JAVL)

Jaypee Agra Vikas Limited is incorporated as a Special Purpose Vehicle to undertake the work fordevelopment of section of Agra Inner Ring Road, with a length of about 20.5 Kms.

Jaypee Fertilizers & Industries Limited (JFIL)

For investment in Fertilizer business, JFIL was incorporated as wholly owned subsidiary.


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PRODUCTS

Jaypeeproduces a wide variety of cements, which are specifically designed to cater to the customers

requirements for different types of cements in each of its markets. All the brands, which the Company

produces,are so evolved in their characteristics and properties that they will surpass BIS Standards.

For each brand, the relevant BIS standards are mentioned in enclosed table along with a comparison

with the BIS requirement.

The state-of-the-art cement plants operated by the Jaypee Group are equipped with the most modern

technology from the globally leading technology providers. Extensive Instrumentation & fully

automatic and computerized process control system, custom designed Quality Control software like

QSO Expert and CADES in the Mines, CrossBelt Expert Analyzer using the Prompt Gamma Neutron

Activation Analysis - for the first time in India, X-Ray Fluorescence and X-Ray Diffraction analyzers

and optical microscope, enable production of cement of the highest quality consistently on a sustained

basis. Jaypee Rewa Plant Quality control laboratory is accredited laboratory from National

Accreditation Board for Calibration & Testing Laboratories, for chemical and mechanical Cemen

ttesting.

All brands are marketed in attractive HDPE bags, containing 50 Kgs of quality cement from Jaypee.

Bags are identified with a conspicuous Jaypee Logo, which also over the years has come to be

regarded as a Hallmark of quality. Jaypee produces & markets both Portland Pozzolana Cement

(PPC) & all grades of Ordinary Portland Cement (OPC). A brief introduction of each brand is

enumerated as below:-

JAYPEE CEMENT (PPC)

Jaypee Cement (PPC) is a market leader among all blended/composite cements in the markets of U.P,

Bihar, M.P.,Punjab, Haryana, and Delhi& Nepal. Its unique design and blend, with high strength

clinker and superior quality flyash has made it the popular cement for construction of large number of

strong and durable structures in thes estates.

Qualities of Jaypee Cement PPC

Unmatched characteristics of Jaypee Cement (PPC) which form the basis of sound & durable

Construction are:


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Better workability due to spherical shape of fly ash particles and better slump retention. Better palpabilityprovides more cohesive concrete and mortar. Superfine particles provide great finish to the structure.

Provides un-segregated concrete of better integrity. Low heat of hydration. Reduced shrinkage and swelling. Better pore refinement, reduced permeability. Better resistance to chloride and sulphate attack Better resistance to alkali-silica reaction. Resistance to corrosive attack on steel reinforcement. Reduced lime leaching. High compressive strength. High modulus of elasticity especially at later ages. Improved bondage of concrete to steel. Long term strength gain.

USAGE:-

Jaypee Cement (PPC) is being used for a number of applications like housing, commercial complexes,

roads, wells,canals, dams etc. which establishes Jaypee preferred choice of the discerning customer. It

is particularly well suited for the tropical climatic conditions of India.

ORDINARY PORTLAND CEMENT

43 Grade Conforming to IS: 8112-1989

53 Grade Conforming to IS: 12269-1987

53 S Grade Conforming to IRST-40(53 S)

Jaypee Cement (OPC-43 Grade)

Jaypee Cement (OPC-43 Grade) is produced from enriched limestone most suited to make highquality clinker,which on grinding gives a cement with characteristics surpassing those specified in IS:


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8112 1989. Jaypee Cement(OPC-43 Grade) is available in 50 Kgs HDPE bags of a distinctive design

and cover. Jaypee Cement (OPC-43 Grade),has emerged as the top choice of Engineers and

Engineering Companies engaged in construction of mega projects such as National Highways,

Bridges, Transmission lines, power plants, Industrial and Residential structures.

Jaypee Cement (OPC-53 Grade)

One of the very few cement manufacturers having the potential to manufacture this special grade of

super fine cement which due to its enhanced quality and performance parameters has been approved

by the RDSO of Indian Railways for manufacture of RAILWAY SLEEPERS.

PRICE

In cement industry price is the key factor that differentiate various competitors brands. The prices of

different brands in the same segment remain more or less similar, with just a difference of 2-5 rupee

per bag. Sometimes price varies with the type of order placed by the customer (trader or non-trade).Pricing decisions in the cement industry largely depend on the price of the inputs like clinker,

other raw materials,excise duties and taxes and the general operating profits. Generally increase or

decrease of input cost affects all brands in the market. Most of the cement companies offer a 5% -10%

margin to the dealer and particular amount of money against per tonnes of the sales to the sales

organizers for promoting their sales in his region. Due to internal competition, the dealers pass on this

advantage to the customers by reducing their own margins by 2- 3%.This is a cause of concern for the

cement companies as they are not able to fix the prices and have to keep a constant check on the

market. Cement companies offer lot of discounts like cash discounts, volume discounts,seasonal

discounts, foreign tours and allowances to dealers for promoting healthy sales.

Jaypee produces a wide variety of cements, which are specifically designed to cater to the customers

requirements for different types of cements in each of its markets. All the brands, which the Company

produces,are so evolved in their characteristics and properties that they will surpass BIS Standards.

Thus basic prices for different brands of JAYPEE CEMENT in Mohali district are given below:


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JAYPEE CEMENT (PPC) PPC stands for PORTLAND POZZOLANA CEMENT Price of Jaypee

Cement (PPC) containing 50 Kgs is INR 270-300 per bag.

Jaypee Cement (OPC-43 Grade) OPC stands for Ordinary Portland Cement contains 50 Kgs is INR

250-320 per bag)

Jaypee Cement (OPC-53 Grade) INR. Rs.250-320per bag contains 50 K


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DISTRIBUTION NETWORK

Jaypee cement has around 156 cement dumps and all are networked using State-of-the-art

TDM/TDMA VSATs along with a dedicated hub to provide 24x7 connectivity between the plants and

the points of cement distribution.This insures track the truck initiative and provides seamless

integration. This initiative is the first of its kind in the cement industry in India.

JAL has set up new capacities in Northern, Central, Western & Southern parts of the country and is

targeting a capacity of 26 MTPA in 2010 and 32.80 MTPA by 2012, along with Captive Thermal

Power Plants (CPPs) totalling 375 MW.

Now the group has 12 integrated cement plants supported by 375 MW of captive thermal power, 9

split location plants, 11 railway sidings


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Geographical Spread

Central ZoneJaypee Rewa Plant (JRP)Jaypee Nagar, P.O. Jaypee NagarRewa - 486450 (M.P)Tel.: (07662) 400700, 229601- 09Fax: (07662) 229218CAPACITY3.00 MnTPA

Bhilai Jaypee Cement Limited (BJCL)Village & Post Babupur,Distt. Satna - 485112 (M.P.) (Clinkerisation Unit)Tel.: (07672 ) 415500, 276248 - 49Fax: (07672) 276216(07662) 409301- 09

North ZoneJaypee Bela Plant (JBP)Jaypee Puram, P.O. Jaypee PuramRewa - 486450 (M.P)Tel.: (07662) 409301- 09Fax: (07662) 409309CAPACITY2.40 MnTPA

Jaypee Roorkee Cement Grinding Unit (JRCGU)Vill. Nalherideh, P.O. Nalhera AnantpurTaluka Roorkee, Distt. Haridwar (U.K.)247667Tel.: (01332) 231941, 45, 46Fax: (01332) 231941CAPACITY1.20 MnTPA

Jaypee Cement Blending Unit (JCBU)Village-Sadwa Khurd, Paragana ArailTehsil - Bara, Distt. Allahabad (U.P.)Mob: 09956290958, 9935522345CAPACITY0.60 MnTPA

Jaypee Cement Grinding Unit (JCGU)Village Khukhrana, P.O: Asan KalanTehsil: Madlauda, Distt. Panipat - 132103 (Haryana)Tel.: (0180) 2520160Fax: (0180) 2520100CAPACITY1.50 MnTPA

Jaypee Ayodhya Grinding Operations(JAAGO)P.O Husainpur Sudhana, Village KhanauraTehsil: Tanda, Distt. Ambedkar Nagar -

224190 (U.P)Tel.: (05273) 284809, 281020, 281015Fax: (05273) 284609CAPACITY1.00 MnTPA

Jaypee Himachal Cement Grinding & Blending Unit(Bagheri)Vill. Tikari (Pandiyana) P.O. Khilian,Tehsil Nalagarh, Solan (H.P.) - 174101

Tel.: (01795) 229100, 266937, 266935, 229150Fax: (01795) 229159CAPACITY2.00 MnTPA

Chunar Cement Factory (CCF)(A Unit Of U.P Cement Plant)P.O. Chunar, Mirzapur (U.P) - 231311Tel.: (05443) 222926, 222265, 222602Fax: (05443) 222700CAPACITY2.50 MnTPA

Jaypee Himachal Cement Plant (JHCP)Village Baga, P.O. Kandhar, Tehsil ArkiDistt. Solan (H.P.) - 171102Tel.: (01796) 223300, 223200Fax: (01796) 223344CAPACITY2.00 MnTPA

West ZoneDalla Cement Factory (DCF)(A Unit Of Jaiprakash Associates Ltd.)Post : Dalla Distt. Sonebhadra (U.P.) - 231207Fax: (05445) 265776CAPACITY0.50 MnTPA

Jaypee Gujarat Cement Plant (JGCP)Sewagram Vill. Vayor, Taluka AbdasaDistt. Kutchh (Bhuj), Gujarat - 370511Tel.: (02831) 279299, 279200Fax: (02831) 279279CAPACITY2.40 MnTPA

Dalla Cement Factory (JP Super Dalla) Jaypee Wanakbori Cement Grinding Unit (JWCGU)


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(A Unit Of Jaiprakash Associates Ltd.)Post : Dalla Distt. Sonebhadra (U.P.) - 231207Fax: (05445) 265776CAPACITY1.10 MnTPA (Under Execution)

Near Wanakbori Thermal Power Station Vill. Sangol,Post Sonipur, Distt. Kheda, Gujarat - 388245Tel.: (02699) 232000Fax: (02699) 236881CAPACITY2.40 MnTPA

East Zone

aypee Churk Industrial Complex (JCIC)P.O. Churk Distt. Sonebhadra (U.P.) - 231206Tel.: (05444) 252110

CAPACITY1.50 MnTPA (Under Execution)

Bokaro Jaypee Cement Limited (BOJCL)Near Indian Oil Corporation Bottling PlantPlot: IV A 7 (P), Bokaro Industrial Area

P.O. Balidah - 827014, Distt. BokaroTelFax: (06542) 253278, 253279CAPACITY2.10 MnTPA

South ZoneJaypee Sidhi Cement Plant (JSCP)Jaypee Vihar, MajhigawanP.O. Bharatpur, Sidhi - 486776Tel.: (07802) 276701 - 276710Fax: (07802) 276715CAPACITY2.00 MnTPA

Jaypee Balaji Cement Plant (BJCL)Survey No. 99, Vill. + Post BudawadaMandal-Jaggiyapet, District Krishna, AndhraPradesh-521175Tel.: (08654) 285011-18Fax: (08654) 285010CAPACITY5.00 MnTPA

Jaypee Sikandarabad Cement Grinding Unit(JSCGU)19 -20 Industrial Area,Distt. Bulandshahr, Sikandarabad (U.P.)Tel.: (05735) 222573, 224242, 221868, 221069Fax: (05735) 222564CAPACITY1.00 MnTPA

Durga Cement Works (DCW)(A Unit of Andhra Cement Limited)Durgapuram, Srinagar (Dist Guntur, Dachepalli(Andhra Pradesh)Tel.: (08649) 257428-29Fax: (08649) 257449CAPACITY2.60 MnTPA (1.60 MnTPA UnderExecution)

Bhilai Jaypee Ginding Plant (BJGP)(A Unit of Bhilai Jaypee Cement Ltd.)(BSP Premises) Slag Road,(Opposite Sector IV NMOH)Bhilai, Distt. Durg (C.G.) - 490001Tel.: (0788) 4022255-56Fax: (0788) 4022216CAPACITY2.20 MnTPA


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Distribution Channel

A channel to market is the method of getting the product into the customers hand. Channel

components vary with change in category of sale (direct sale or indirect sale). In direct sale

the product is delivered to end customer directly from manufacturers. But in indirect sales

channel involves various components such as sale promoters,distributors, retailers. Most of

the companies have two tier distribution channels i.e. they only have distributors/dealers and

retailers whereas Jaypee cement follows three tier distribution channels. They include sales

promoters in their distribution channel to promote their sales. Companies invariably hire C &

F agents to transport cements to own or government warehouses either via roadway or

railways. Incase of exports, cement reaches the nearest port via roadways or railways and is

then transferred to the importing country

Domestically, from C & F agents or warehouses the cement is transported to the

dealers/distributors and in turn to sub-dealers who finally sell it to the end users. There may

or may not be physical ownership of goods. In the second case, dealers and sub dealers

take order from buyers and place it to the companies, co -ordinate and monitor the timely

dispatch of said orders, transportation of goods and final delivery. Distributor network

incement industry is of high importance and companies are compelled to hire them as the

companies do not really have that rapport and touch with the end consumer. The distributors

have storage facilities which help them in controlling the entire supply chain as they are the

ones who bring orders.

Manufacturing Unit

Warehouse

Dealers

Sub Dealers

Retailers


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PROMOTION

Jaypee Cements advertising has created brand awareness, highlighted what the brand has to offer and

has consistently brought all of it top-of-the-mind for the customer. But the outreach effort does not

end there. Jaypee Cement has recognized the importance of communicating to and involving key

players who influence the final brand choice. These include channel partners, contractors and masons,

on whom Jaypee cement focuses by initiating and developing innovative activities and promotions.

This helps build the Jaypee cement family so that customers get a high degree of personalized service

and professional guidance to facilitate their final decision.

The company also does press releases to tell about their achievements and upcoming projects to

market.


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STRUCTURE OF INDIAN CEMENT INDUSTRY

While the Competition Commission of Indias stunning penalty of Rs 6,307 crore on 10 topcement companies might have put other sectors including tyre and steel on high alert, it alsoprovides an interesting insight into the cement industry

THE CEMENT INDUSTRY IN INDIA

183 large cement plants and more than 360 mini cement plants

330 million tonnes a year installed capacity

97% of the installed capacity is accounted for by large producers, around 40 innumber

21 top companies control 90% of the market

40% of the market is controlled by two groups, Holcim and Aditya Birla Group


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PEST ANAYLSYS aid us in understanding the big picture of the Political, Economic, Socio-Cultural

and Technological environment in which the industry operates in

Political

The price of cement is primarily governed by the coal rates, power tariffs, railway tariffs, freight, and

royalty.Interestingly government controls all of these prices. Government is also one of the biggest

consumers of the cement in the country. Most state governments, in order to attract investments in

their respective states, offer fiscal incentives in the form of sales tax exemptions/deferrals. States like

Haryana offer a freeze on power tariff for 5 years, while Gujarat offers exemption from electric duty.

Government Initiatives

The Government of India has approved a package of fiscal incentives and other concessionsfor the North East Region, namely the North East Industrial and Investment Policy, 2007

In a bid to attract foreign investors to its ambitious highways building programme, theMinistry of Road Transport plans to roll out projects worth US$ 120 billion by 2016

With an aim of accelerating and sustaining growth in the cement industry the Government hastaken various measures in the Union budget 2011-12. The infrastructure sector has received

an impetus in the form of improved funds and tax related incentives offered to attract

investors for tapping the infrastructure opportunities around India. Introduction of tax free

bonds, formation of infrastructure debt funds and formulating a comprehensive policy for

developing public private partnership projects (PPPs) are some of the steps that will provide

required stimulus for growth.


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Economic

Current Scenario

The cement sector notably plays a critical role in the economic growth of the country and its journey

towards conclusive growth. Cement is vital to the construction sector and all infrastructural projects.The construction sector alone constitutes 7 per cent of the country's gross domestic product (GDP).The industry occupies an important place in the Indian economy because of its strong linkages toother sectors such as construction, transportation, coal and power.

India is the second largest producer of quality cement in the world. The cement industry in Indiacomprises 183 large cement plants and over 365 mini cement plants. Currently there are 40 players inthe industry across the country.

The cement industry in India is experiencing a boom on account of overall growth in the economy.The demand for cement, being a derived one, depends mainly on the industrial activities, real estatebusiness, construction activities and investment in the infrastructure sector.

Market Size

The cement industry of India is expected to add 30-40 million tonnes per annum (MTPA) of capacityin 2013. The industry has a current capacity of 324 MTPA and operates at 75-80 per cent utilisation.

"It is anticipated that the cement industry players will continue to increase their annual cement outputin coming years and the country's cement production will grow at a compound annual growth rate(CAGR) of around 12 per cent during 2011-12 - 2013-14 to reach 303 million metric tonne (MMT),"according to a report titled 'Indian Cement Industry Forecast to 2012', by research firm RNCOS.

Investments

The cement and gypsum products sector has attracted foreign direct investments (FDI) worth Rs11,779.04 crore (US$ 2.12 billion) between April 2000 to February 2013, according to the datapublished by the Department of Industrial Policy and Promotion (DIPP).

Some of the major investments in the sector are as follows:

Barings Private Equity Asia has picked up a 14 per cent minority stake in the Indian unit ofcement major Lafarge, for Rs 1,427 crore (US$ 257.11 million)

Sinoma International Engineering (Hong Kong) Ltd, a part of the Chinese state-run NationalMaterials Group Corp, has entered the Indian cement equipment industry by acquiring amajority stake in Chennai-based equipment manufacturer LNV Technology Ltd

Dalmia Cement plans to invest Rs 1,800 crore (US$ 324.32 million) to increase thecompany's cement manufacturing capacity over the next two years. The company also plansto set up a 2.5 million tonne (MT) greenfield unit in Karnataka

Ambuja Cements Ltd plans to invest Rs 2,000 crore (US$ 360.33 million) to enhance itscement capacities in Rajasthan and northern region. The proposed project at Rajasthan wouldadd five MT capacity to the total cement production of India

Reliance Cement Company Pvt Ltd (RCC), a subsidiary of Reliance Infrastructure Ltd, hascommenced production of cement from its first manufacturing unit at Butibori, Nagpur inMaharashtra


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Social

Usually, the cement industry in India consists of both the organized sector and the unorganized sector.

Organized sector comprises of the well-known cement manufacturing companies while the main

players of the unorganized sector are the regional and local cement-producing units invarious states

across the state.

Key players in Indian cement industry

DOMESTIC PLAYERS:

Jaiprakash Associates Limited

Jaiprakash Industries, now known as Jaiprakash Associates Limited (JAL) is part of the Jaypee Group

with businesses in civil engineering, hospitality, cement, hydropower, design consultancy and IT.

Jaypees cement business is housed in Jaiprakash Associates, a listed company that has a cement-

making capacity of 28 milliontonnes a year, making it Indias third-largest cement producer, behind

capacities owned by Germanys Holcim and the Aditya Birla Group.The company is in the midst of

capacity expansion of its cement business in Northern, Southern, Central, Eastern and Western parts

of the country and is slated to be a 35.90 MnTPA by FY13 (expected) with Captive Thermal Power

plants totaling 672 MW.Jaiprakash Associates has decided to concentrate on its core business of

construction and engineering and leave its cement plant to its subsidiary Jaypee Rewa Cement Ltd.

The company manufactures a wide range of world class cement of OPC grades 33, 43, 53, IRST-40

and special Blends of pozzolana cement. At present, the company has a market share by installed

capacity of 7 per cent with the cement division contributing Rs.13, 904.07crore to revenue in 2010-

11.The Jaypee Group which has been in the limelight after a group company staged Indias first

Formula One race on October 30has said it plans to raise capacity to 35 million tonnes by the

middle of 2012. The cement business generated revenues of Rs 5,455.79 crore in FY 2010 but that

was dwarfed by debt of Rs 11,500 crore.The groups three listed companies have a total debt of over

Rs 40,000 crore, the result of rapid expansion. Apart from Jaiprakash Associates, the cement-maker,

the other listed firms are Jaypee Infratech, which executes real estate and infrastructure projects, and

Jaiprakash Power Ventures, which builds power plants and transmission systems."Right now, the type


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of solid assets the company has and the growth plan the company is working on would enable the

company to deliver and register growth, not just comparable to but better than peers."

Associated Cement Companies Ltd (ACCL)

ACC (ACC Limited) is Indias foremost manufacturer of cement and concrete. ACCs operations are

spread throughout the country with 16 modern cement factories, more than 40 Ready mix concrete

plants, 21 sales offices, and several zonal offices. It has a work force of about 9,000 persons and a

country wide distribution network of over 9,000 dealers.The history of ACC spans a wide canvas

beginning with the lonely struggle of its pioneer F E Dinshaw and other Indian entrepreneurs like him

who founded the Indian cement industry. Their efforts to face competition for survival in a small but

aggressive market mingled with the stirring of a countrys nationalist pride that touched all walks of

life - including trade, commerce and business.The house of Tata was intimately associated with the

heritage and history of ACC, right from its formation in 1936 upto 2000. Between the years 1999 and

2000, the Tata group sold all 14.45 per cent of its shareholding in ACC in three stages to subsidiary

companies of Gujarat Ambuja Cements Ltd (later called Ambuja Cement Ltd), who then became the

largest single shareholder in ACC.A new association was forged between ACC and the Holcim group

of Switzerland in 2005. In January 2005, Holcim announced its plans to enter into a long-term

strategic alliance with the Ambuja Group by acquiring a majority stake in Ambuja Cements India Ltd.

(ACIL), which at the time held 13.8 per cent of the total equity shares in ACC.Holcim simultaneously

announced its bid to make an open offer to ACC shareholders, through Holcim Cement Pvt.Limited

and ACIL, to acquire a majority shareholding in ACC. An open offer was made by Holcim Cement

Pvt.Limited along with Ambuja Cements India Ltd. (ACIL), following which the shareholding of

ACIL increased to 34.69 per cent of the Equity share capital of ACC. Consequently, ACIL filed

declarations indicating their shareholding and declaring itself as a Promoter of ACC. Presently market

capitalization of ACC is Rs. 22,826.53 cr.

Ultratech Cement

Ultratech Cement Limited is Indias largest manufacturer of cement with an installed capacity of 52

Million Tonnes Per Annum.Ultratechs products include Ordinary Portland Cement, Portland

Pozzolana Cement and Portland Blast Furnace Slag cement. Ultratech is the most trusted and

preferred brand of Engineers, builders, contractors and individual house builders.Ultratechs success

is attributed to its diverse product offerings. Different products are handled by different product

groups, which are also known as profiles. Product groups decentralize control and encourage

innovation.They also ensure better customer segmentation, which in turn leads to better customization

of product offerings and guarantees cent percent customer satisfaction. Ultratech Cement, Birla

White, Ultratech Concrete, Ultratech Building Products and Ultratech Solutions are the different

profiles of Ultratech, each catering to varied needs. This versatility has been a key competitive

advantage for Ultratech over the years. Company has produced 32.92 MMT of cement with effective

capacity utilization of 81% in 2011. Companys Netturnover stood at Rs.13210 crore with net profit

after tax of Rs.1404 crore.

Ambuja Cements Ltd (ACL)

Ambuja Cements Ltd. (ACL) is one of the leading cement manufacturing companies in India. The

Company, initially called Gujarat Ambuja Cements Ltd., was founded by Narotam Sekhsaria in 1983

with a partner, Suresh Neotia .Sekhsarias business acumen and leadership skills put the company on

a fast track to growth. The Company commenced cement production in 1986. The global cement


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major Holcim acquired management control of ACL in2006. Holcim today holds little over 46%

equity in ACL. The Company is currently known as Ambuja Cements Ltd.Its current cement capacity

is about 25 million tonnes

SHREE Cement Ltd.

Shree Cement Ltd (SCL) is present in the cement and power sector. It is the largest cement producer

in North India and among top six cement manufacturing groups in the country. It has cement capacity

of 13.5 million ton and power capacity of 560 MW. SCL has manufacturing facilities at Beawar and

Ras in Ajmer and Pali district and grinding units at Khushkhera, Suratgarh and Jaipur respectively in

Rajasthan and Roorkie in Uttarakhand. SCL boasts of highly recognized brands like Shree Ultra Jung

Rodhak, Bangur Cement and Rockstrong. SCL is an ISO9001, ISO 14001, OHSAS 18001 and SA

8000 certified company and pursues best practices in Manufacturing, Energy Conservation and

Environment Management. SCL has received numerous awards and recognitions at national and

international levels for Excellence in Energy Management, Environment Management and Corporate

Governance practices. Companys turnover for 12 months period of April11-March12 was Rs 4625

cores. SCL is a consistent dividend paying company (120% dividend for April11-March12). SCL

commitment to energy efficiency and environment management is reflected in the fact that it set up

Waste heat recovery plants of 46 MW which is the largest such capacity in the world cement industry

excluding china. SCL commissioned Unit VIII in World Record time of 330days against average

period of 630 days. It enjoys approx. 19% market share in North India and is leader in markets of

Rajasthan, Delhi and Haryana.

FOREIGN PLAYERS:

Heidelberg

Heidelberg Cement is the global market leader in aggregates and a prominent player in the fields ofcement,concrete, and other downstream activities, making it one of the worlds largest manufacturers

of building materials. In 2011, Group revenue amounted to 12.9 billion. The core activities of

Heidelberg Cement include the production and distribution of cement and aggregates, the two

essential raw materials for concrete. We supplement our product range with downstream activities

such as ready-mixed concrete, concrete products, and concrete elements, as well as other related

products and services. Around 52,500 employees in more than 2,500 locations make sure on a daily

basis that our slogan for better building is brought to life.

Italcementi Group

The Italcementi group is one of the largest producers and distributors of cement with 60 cement

plants, 547 concrete batching units and 155 quarries spread across 19 countries in Europe, Asia,

Africa and North America. Italcementi is present in the Indian markets through a 50:50 joint venture

company with Zuari Cements. All initiatives in southern India are routed through the joint venture

company, while Italcementi is free to buy deals .Inits individual capacity in northern India. The joint

venture company has a capacity of 3.4 million tonne and amarket share of 2.1 per cent

Lafarge India

Lafarge the worlds largest cement manufacturer entered the Indian market in 1999 through its cement

business,with the acquisition of Tata Steels cement activity. This acquisition was followed by the

purchase of the Raymond Cement facility in 2001.


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Lafarge is one of the leading players in the cement industry in Eastern and Central India, with its

leading brands -Concreto and Dura guard. The company currently has four cement plants in India:

two integrated cement plants inthe state of Chhattisgarh (Sonadih and Arasmeta) and Grinding Units

in Jharkhand (Jojobera) and West Bengal(Mejia).

Lafarges total cement production capacity in the Indian market is currently over 8 million tons and theGroup has launched an ambitious program to more than double its capacity in the next five years.

Holcim

Holcim, earlier known as Holder bank, has a cement production capacity of 141.9 million tonne. It is

a key player in aggregates, concrete and construction related services. It has a strong market presence

in over 70 countries and isa market leader in South America and in a number of European and

overseas markets. Holcim entered India by means of a long-term strategic alliance with Gujarat

Ambuja Cements Ltd (GACL).

The alliance aims to strengthen their clinker and cement trading activities in South Asia, the MiddleEast and the region adjoining the Indian Ocean. Holcim also intends to use India as an additional base

for its IT operations, R&D projects as well as a procurement sourcing hub to generate additional

synergies and value for the group

Technology

From mining to production the entire process depends on technology. Several companies have

adopted innovative strategies and technologies to reduce their operational and production costs. The

Government of India is alsolooking forward to study and possibly acquire new technologies from thecement industry of Japan. The government is discussing technology transfer in the field of energy

conservation and environment protection tohelp improve efficiency of the Indian cement

industry.Cement industry has made tremendous strides in technological up-gradation and assimilation

of latest technology.


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PORTERS FIVE FORCES MODEL

Threat of New Entrants (High):The existing companies are struggling hard to expand their

production capacity to face the rising competition. With the announcement of the Indian Government

in the budget for theFY2010-2011 to pump in more than Rs.1.73 trillion in infrastructure (Thomson

Reuters Corporate), the cement industry becomes a very attractive market to enter, thus increasing the

threat of new entrants.

But the high capital costs acts as a major entry barrier for the entry of new players. Cement being a

high volume low value commodity results in high freight costs, which makes cement imports

economically unfeasible.

Competitive rivalry between existing players (High):Being a non-consolidated industry the rivalry

is strong among the players. During the last few years the industry has become more consolidated

with the Top 3 players having a combined market share of 70 percent in 2011-12 as compared to 32

percent in 1999-2000.Still rivalry persist to great extent to acquire maximum market share.

The Indian cement industry has large number of cement producers thus making it a low concentration

market. The four biggest cement players in the Indian cement industry are:

1. Ultratech cement

2. Ambuja Cement

3. ACC cement

4. Jaypee cement


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Bargaining power of Buyers (Low):In the present day context, cement producers have become more

powerful than buyer because of housing growth. In the current situation, most of the companies are

moving into direct marketing, thus removing middlemen.

Despite enough competition from high institutional demand of cement, small-time buyers are still

targeted as a primary market by the cement companies.Around 80 percent of the total sales are beingcontributed by retail and the rest by institutional sales. But as institutional players buy in bulk they get

a discount of 5%-1. Thus the primary target is not left with much bargaining power.

Bargaining power of Suppliers (Low):The basic raw materials used in the cement manufacturing

process are limestone, sand, shale, clay, and iron ore. The main material, limestone, is usually mined

on site while the other minor materials may or may not be mined there. Since all the raw materials are

natural resources, they are under the Governments control. To mitigate the high costs of power the

cement players have set up captive power plants .Hence, Companies have to buy rights from the

government to setup the cement plant. So there are no such suppliers in the cement industry.

Threat of Substitutes (Low):Now-a-days Timber is also being considered as one of the substitutes ofcement. In many countries like Japan, Indonesia, Singapore etc. are now using timber in construction

since those areas are high earthquake affected. They now prefer timber which is cheap and long

lasting for years.But timber cannot be considered, as one of the major substitutes of cement, therefore

cement is one of the main components of any construction. Without cement, construction workis next

to impossible as it provides strength to the building.


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INDUSTRY SWOT ANALYSIS

Strengths: Double digit growth rate

Cement demand has grown in tandem with strong economic growth; derived from:

Growth in housing sector key demand driver; Infrastructure projects like ports, airports, power projects, dam & irrigation projects National Highway Development Programme Bharat Nirman Yojana for rural infrastructure Rise in industrial projects Export potential also demand driver

Weakness: Low value commodity

Cement Industry is highly fragmented Industry is also highly regionalized which leads to threat of infiltration Lowvalue commodity makes transportation over long distances uneconomical.


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Opportunities: Demandsupply gap

Substantially lower per capita cement consumption as compared to developing countries. Limited green field capacity addition in pipeline for next two years, leading to favorable

demandsupply scenario

Threats: Rising input costs

Government intervention to adjust cement prices Transportation cost is scaling high; bottleneck due to loading restrictions Coal prices climbing up; industry players say current shortage of coal in the country is

estimated to be over 10 million tones


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DETAIL

REPORT


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OBJECTIVE OF THE PROJECT

This project was undertaken for following objectives :

To carry out market survey for knowing prevailing market condition of Jaypee cementin Mohali district.

To check awareness of Retail shop owner about the product. To study the sales and promotion activities undertaken by Jaypee cement and

other players in the market.

To check if there is some scope for increasing sales through some new promotionalschemes.

To attain these objectives various other sub objective are needed to be achieved. These are listed

below.

f

cement.

transportation facilities for Jaypee and other cement

companies.

various companies

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

increase the business prospects.


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Scope of the study

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

2. The study can help in analyzing certain weak point, improving on which a company can overcomethe low sales of its cement but only in Mohali district.

Research Methodology

Since the cement is a core product and being used by all types of consumers, so our focus forcollection data was each and every man who are directly or indirectly involved with the sale or use ofcement such as stockists, dealers, civil engineers, contractors, individual customers, masons, etc.

To know the position of Jaypee Cement in the trade and non-trade segment regarding sale incomparison with the other brands on the basis of attributes of cement has been done. For this purpose,opinion of stockists, dealers (who posses knowledge regarding different brands available in themarket) has been taken. This might be helpful to draw the right picture about the market scenario.

This was convenient in nature because I would have to account only those people who actuallyrequire or purchase cement in bulk quantity. The survey is conducted with the help of questionnairemethod and survey is conducted in the Mohali district.

Every type of research requires two types of data to be collected to reach up to any conclusion:

Primary Data are those data, which are directly obtained from people by approaching themindividually, primary data are generated when the researcher employing mail questionnaire,telephone surveys, personal interviews, observations and investigates a particular problem at

hand.

For this project primary data was collected from stockists, dealers by using survey method.

Data collection from respondents was carried out with the help of a structured interview

schedule. In this method data was collected from respondents through questionnaires.

Secondary Data, on the other hand, includes those data, which are collected in the past forother research work and are being used in current project work.

Secondary Data, such as procedures of marketing for cement, marketing conditions, brief

details of Jaypee Cement and other competitors, price, quality, and other strategy andplanning, specification in relation to other cement companies, all other information which can

be useful to complete this project, was collected for Sales and Marketing Department of

Jaypee Cement. Published Documents of Jaypee Cement and other competitors cement

plants have also been used for collection of secondary data.


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Position of various cement brands in Zirakpur, Dhakoli & Baltana regions

of Mohali district :

Below mentioned response is based on the survey conducted from about 24 cement dealers. Which

include wholesellers, retail based dealers(RBD) & retailers of jaypee, ultratech, ambuja, JK, ACC &

other cement brands such as birla & shree.

There is a total monthly consumption of about 2500 tonnes in the area. The major portion of market is

captured by ambuja of about 850 tonnes followed by its competitor ultratech i.e 550 tonnes than

jaypee & JK aprox 330 tonnes each. ACC & other cement brands consume about 150 & 300 tonnes.

Following is the average monthly sale by dealers & retailers of various

cement brands :

OPTIONS RESPONSE(%)

JAYPEE 13.18

ULTRATECH 21.30

AMBUJA 34.16

JK 13.26

ACC 6.05

OTHERS 12.05

TOTAL RESPONSES 100%


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INTERPRETATION:

Average sale per month by dealers & retailers of ambuja & ultratech is maximum i.e 34.16% for

ambuja & 21.3% for ultratech followed by 13.26% by JK & 13.18% by jaypee. Whereas ACC &

others have 6.05% & 12.05%.Thus average sale per month by dealers & retailers of jaypee is very less

as compared to ambuja & ultratech.

13.18

21.3

34.16

13.26

6.05

12.05

0

5

10

15

20

25

30

35

40

Jaypee Ultratech Ambuja JK ACC Others

Data Analysis


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After doing survey and getting filled the questionnaire from various cement counters & dealers of few

regions of Mohali district which include Zirakpur, Baltana,Dhakoli. Conclusions which came out

were as follows:

PROBLEMS:

1) Firstly demand of ambuja is more in the region followed by its close competitor ultratech.2) Jaypee is a good quality cement as compared to its competitors but it has less name in the

market.

3) Jaypee has trading policy whereas few dealers want non trading policy (V.K Traders,zirakpur)

4) There are lot of rate issues , no specific rates are told to the dealer.(Sethi cement store, villhimmatgarh dhakoli)

5) Few dealers were interested but didnt got a good response.(Raj hardware, main bazaarbaltana)

6) The main issue is of packing. New packing is not appreciated by the dealers as it tears easily& there are lifting problems faced by the labour.(Channi cement store, Lohgarh Sethi cement

store, vill himmatgarh dhakoli)

SUGGESTIONS:

1) Jaypee cement should work more on marketing strategies to make the brand more awareamong the customers.

2) Change in rates should be timely informed to the dealers.3) Old packing is more in demand as compared to new packing.

INTERESTED IN SUB-DEALERSHIP

1) Yadav cement store, shivam market dhakoli 9417133804.2) Bansal building material, shop no-2 shalimar enclave dhakoli 9417433947.


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Position of various cement brands in Derabassi, Dappar & Lalru regions of

Mohali district :


include wholesellers, retail based dealers(RBD) & retailers of jaypee, ultratech, ambuja, JK, Bangur

& other cement brands such as ACC & shree.


captured by ultratech of about 550 tonnes followed by its competitors ambuja, jaypee, JK & bangur

having a consumption of 130, 150, 170 & 160 tonnes with a close competition among each other.


cement brands :

OPTIONS RESPONSE(%)

JAYPEE 13.65

ULTRATECH 42.2

AMBUJA 10.44

JK 12.04

BANGUR 12.85

OTHERS 8.82



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INTERPRETATION:

Average sale per month by dealers & retailers of ultratech is maximum i.e 42.2% followed by other

cement brands which are nowhere in the competition i.e 13.65% by jaypee 10.44% by ambuja 12.04%

by JK 12.85% by bangur & 8.82% by others i.e ACC & shree. Thus average sale per month by dealers

& retailers of jaypee is very less as compared to ultratech.

13.65

42.2

10.4412.04 12.85

8.82

0

5

10

15

20

25

30

35

40

45

Jaypee Ultratech Ambuja JK Bangur Others

Data Analysis


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regions of Mohali district which include Dera bassi, Dappar, Lalru. Conclusions which came out were

as follows:

PROBLEMS:

1) Market is again captured by ultratech & ambuja.2) Jaypee cement is less in demand as compared to its competitors.3) There is transportation problem. No cooperation of the suppliers.(Garg Iron Store, Adarsh

nagar dera bassi Janta cement store, Dharamgarh road Lalru mandi)

4) No advertisement material being supplied.5) Few dealers left dealership due to billing issues and were not satisfied with company policies.

( Aggarwal trading co., Adarsh nagar dera bassi parkash iron store, barwala road dera bassi)

6) Packing problem is faced by all the dealers.

SUGGESTIONS:

1) More awareness should be made among the labour and thekedars by having regular meetings& distributing gifts among them.

2) Jaypee cement has the best quality as compared to its competitors, it just need more publicity.3) Transportation issues should be resolved as its competitors provide a good co-operation in

supplies.

4) Advertisement material is in great demand among all the dealers which need to be provided tocreate more interest in them and enthusiasm among labour to work for jaypee cements.

5) Old packing need to be brought in market again.


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Position of various cement brands in Nayagaon, Mullapur & Kurali

regions of Mohali district :


include wholesellers, retail based dealers(RBD) & retailers of jaypee, ultratech, ambuja, ACC & other

cement brands such as bangur, JK & shree.


captured by ambuja of about 750 tonnes followed by its competitors jaypee, ultratech & ACC having

a consumption of 630, 620 & 500 tonnes.


cement brands :

OPTIONS RESPONSE(%)

ULTRATECH 23.7

AMBUJA 28.1

JAYPEE 24.1

ACC 19.3

OTHERS 4.8



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INTERPRETATION:

Average sale per month by dealers & retailers of ambuja is maximum i.e 28.1% followed by its close

competitors jaypee, ultratech, ACC & others i.e 24.1%, 23.7%, 19.3% & 4.8%. Thus average sale per

month by dealers & retailers of jaypee is quiet competable as compared to its competitors in the

region.

24.1 23.7

28.1

19.3

4.8

0

5

10

15

20

25

30

Jaypee Ultratech Ambuja ACC others

Data Analysis


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regions of Mohali district which include Nayagaon, Mullapur, Kurali. Conclusions which came out

were as follows:

PROBLEMS:

1) Inspite of good market dealers are not satisfied. Some are looking forward to leave thedealership. (Durga iron store, sabzi mandi kurali)

2) Less brand awareness is there among people. ( sonu traders, nayagaon)3) Rude behaviour of company employee with the dealers. ( durga iron store, sabzi mandi kurali)4) No advertisement material. ( Manish cement store, mullapur) (durga iron store, sabzi mandi

kurali)

5) Billing issues and pricing problems.6) Transportation and packing problems.

SUGGESTIONS:

1) Regular meetings should be held with the dealers to keep them satisfied.2) There should be some brand awareness campaigns in region where people are not aware of

the brand.

3) Politeness must be there while dealing with the dealers, it reflects the company & brandimage.

4) Advertisement material is again in great demand.5) Measures should be taken to resolve billing issues faced by many dealers.6) Measures should be taken to resolve packing and transportation issues too.


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Position of various cement brands in Mohali city & Kharar regions of

Mohali district :


include wholesellers, retail based dealers(RBD) & retailers of jaypee, ultratech, ambuja, ACC & other

cement brands such as JK & shree.


captured by jaypee of about 1400 tonnes followed by its competitors ambuja, ultratech, ACC &

others having a consumption of 1200, 1000, 900 & 600 tonnes.


cement brands :

OPTIONS RESPONSE(%)

AMBUJA 23.5

ACC 17.5

ULTRATECH 19

JAYPEE 28

OTHERS 12



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INTERPRETATION:

Average sale per month by dealers & retailers of jaypee is maximum i.e 28% followed by other

cement brands giving a close competition i.e 23.5% by ambuja 19% by ultratech 17.5% by ACC &

12% by others i.e JK & shree. Thus average sale per month by dealers & retailers of jaypee is good

compared to its competitors.

28

19

23.5

17.5

12

0

5

10

15

20

25

30

Jaypee Ultratech Ambuja ACC Others

Data Analysis


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regions of Mohali district which include Mohali city & Kharar. Conclusions which came out were as

follows:

PROBLEMS:

1) Jaypee has a good market as compared to other regions of the district but still some dealersare having personal issues & are looking forward to leave the dealership. ( vishal trading,

kharar)

2) There are many dealers in a small region leading to rate clashes. Some already left sub-dealership & dealership. (Banga constructions, jhungian road kharar) (Krishna steel &

building material, kharar)

3) Arrogant attitude with dealers. ( vishal trading, kharar)4) Transportation & packing problems.

SUGGESTIONS:

1) Regular meetings should be held with the dealers to keep them satisfied.2) There should be a proper retail price and wholesale price rate structure and dealers must be

timely informed about the price change.

3) Transportation & packing issues should be resolved.


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Overall Position of Jaypee Brand & its competitors in Mohali District :

After analysing the whole data of various regions the final results which came out from the survey are

that there is a total consumption of about 13,000 tonnes of cement in mohali distt. The main players

in market are Ambuja & Ultratech followed by Jaypee. There is a total consumption of 3200 tonnes of

ambuja, 3000 tonnes of ultratech & 2600 tonnes of jaypee. Other players in the market are ACC, JK,Bangur, Shree & Birla with a consumption of 2000, 1000, 500 & 900 tonnes.

Thus in a short duration of almost 3yrs jaypee has created a good brand name in the market &

is giving a tough competition to its competitors .

Following is the average monthly sales of jaypee & its competitors in

mohali district :

OPTIONS RESPONSE(%)

JAYPEE 20

ULTRATECH 23

AMBUJA 24

ACC 15

JK 8

OTHERS 10



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INTERPRETATION:

Average sale per month by ambuja is maximum i.e 24% followed by ultratech & jaypee giving a close

competition i.e 23% by ultratech & 20% by jaypee. Other players are ACC, JK, bangur, birla & shree

with sales of 15%, 8% & 10%.

Thus the average sales by jaypee is good taking into consideration the duration in which it has

set a good brand name in market comparing to its competitors.

20

2324

15

8

10

0

5

10

15

20

25

30

Jaypee Ultratech Ambuja ACC JK others

Data Analysis


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While dealing with cement how important are various features such as cost

quality, brand-image, packing & promotional activities was known by the

survey :

INTERPRETATION:

40% of dealers & retailers suggested that brand image is an important feature while dealing with

cement. Thus, brand image is ranked 1st, whereas 20% of dealers & retailers suggested that packingshould be given preference. So, packing is ranked 2nd. On the other hand cost & promotional activities

are at 3rd rank each with 15%, quality is at 4th rank with 10%.

15%

10%

40%

20%

15%

Sales

Cost

Quality

Brand image

Packing

promotional activities


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SWOT Analysis

SWOT Analysis is an effective way of identifying your strengths andweaknesses and of examining the opportunities and threats.

STRENGTHS

a) Potential market is closed to the factory.b) Establishing brand-historical advantage.c) Consistent good quality of cement.

WEAKNESSES

a) Dealers are facing Billing problem by the company.b) Lack of awareness programme for consumers.c) Transportation problems.

OPPORTUNITIES

a) Well establish brand will be helpful in increasing sales.b) Growing market.c) Strong infrastructure requirement for the development of the country and the

country will develop in absolute swiftness.


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THREATS

a) Tough competition from Ambuja & Ultratech.b) Other brands like Ambuja & Ultratech provide maximum profit to both dealers &

retailers.

c) Dealers expect more promotional activities & schemes.


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CONCLUSION

To attain the objective of the project detailed information was collected from the market of Mohalidistrict. The market research has revealed many facts and figures about the cement scenario in the

market prevailing.

Jaypee cement has captured a good market in the district. This is the result of good quality ofcement along with their effective marketing efforts, the whole market customers of Jaypeecement are highly satisfied with the use of it, as they do not face any problem after using it.

There are seven major players in the market but the major competition is between the twobrands of cement i.e Ambuja & Ultratech. But because of good efforts, Jaypee cement is ableto grasp a good share.

The market survey undertaken shows that effective marketing efforts play a vital role increating the goodwill for the brand. The distribution channel of cement industry must be welldesigned.

Technical team is making effective efforts to maintain the goodwill for the brand.


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SUGGESTIONS

A very exhaustive study has been made, keeping in the essence of the objective of the project. Withthe efforts put on the project a detailed analysis was conducted and result was derived, based on theresults and market response few suggestions are discussed below.

A Price fluctuation creates problems for dealers & retailers as they cannot keep thecommitments of price to customers.

The reach to market of few regions need to be strengthened. Transportation facility need to be improved, a significant amount of business suffers due to

this.

Effective efforts must be put to keep the dealers & retailers satisfied by various promotionalschemes & activities.


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LIMITATION OF THE STUDY

1. Lack of cooperation from the retailers in regard to giving interview2. It was found in some cases dealers showed inclination towards certain brands which gave them

more margins when compared to others.

3. It was experienced during the survey that it was difficult to convince or make the retailers anddealers understand the important of the project

4. As the retailers and dealers thought that it was unwise for to give their details of business as theyfeared competitors would take advantage.