mandeep project

8/2/2019 Mandeep Project

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A

PROJECT BON HUL

MASTER OF BUSINESS ADMINISTRATION (MBA)

(SESSION: 2011-2013)

UNDER GUIDANCE OF: SUBMITTED BY:

Asstt. Pro. MANPREET KAUR HARMEET SINGH

Faculty, MBA MBA 2ND

SEM

MBA/11/371

CONTENTS

Introduction about the cement industryIntroduction to the organization

Background of problem task Rationale Scope of the project


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Objective of the study Main objective Specific objective

Methodology Data collection method Research methodology

SWOT analysis

Pest analyasis

Data analysisLimitations of the studyFindingsRecommendationsSample questionnaires

OVERVIEW OF THE CEMENT INDUSTRY

The Indian Cement industry is the second largest cement producer in the world,

with an installed capacity of 144 million tones. The industry has under gone rapid

technological up gradation and vibrant growth during the last two decades ,andsome of the plants can be compared in every respect with the best operating


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plants in the world. The industry is highly energy intensive and the energy bill in

some of the plants is as high as 60% of cement manufacturing cost. Although the

newer plants are equipped with the latest state-of-the-art equipment, there exists

substantial scope for reduction in energy consumption in many of the older plants

adopting various energy conservation measures. The Indian cement industry is amixture of mini and large capacity cement plants ,ranging in unit capacity per kiln

as low as 10 t pd to as high as 7500 t pd. Majority of the production of cement in

the country (94% ) is by large plants, which are defined as plants having capacity

of more than 600 t pd. At present there are 124large rotary kiln plants in the

country. The Ordinary Portland Cement (OPC) enjoys the major share (56%) of

the total cement production in India followed by Portland Pozzolana Cement

(PPC) and Portland Slag Cement (PSC). 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. Most of the cements plants in

India are located in proximity to the raw material Z sources, exploiting the

natural resources to the full extent. The southern region is the most cement rich

region while other regions have almost same cement production capacity. 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, and the electrical energy is obtained either from grid or captive power

plants of the individual manufacturing units.

1. Salient features of Indian cement industry Indian cement industry is the second largest in the world with an installed

capacity of 135 MTPA. It accounts for nearly 6% of the world production. There

are 124 large plants and around 365 mini plants. The industry presents a mixed

picture with many new plants that employ state-of-the-art dry process technology

and a few old wet process plants having wet process kilns. Production from large

plants (with capacity above 1 MTPA) account for 85% of the total production. The

cement industry has achieved significant progress in terms of reducing the

overall energy intensity. Dry process plants that the weighted average thermalenergy consumption was 734 k Cal/kg clinker, and weighted average electrical

energy consumption was 89 kWh/tonne of cement. The best energy consumption

are 692 k Cal/kg. clinker and 66 kWh/ton of cement.

2. Quantitative details:The energy intensity of the all the dry process plants (cost of energy as

percentage of total production cost of packed cement) varies from 29 to 61%.This

is observed to vary with the vintage of the plant, the technology employed by the

plants and the type of cement produced. Specific thermal and electrical energyconsumption for the plants ranges between 692 879 k Cal/kg. of clinker and 66


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127 kWh/ton of cement produced(product mix) respectively. The specific

electrical energy also includes the energy consumed in packing, plant utilities and

plant lighting. The reasons for wide range in specific energy consumption can be

mainly attributed to the differing equipment configuration employed in different

sections of the plants .

3. Total production:The cement industry comprises of 125 large cement plants with an installed

capacity of 148.28 million tonnes and more than 300 mini cement plants with an

estimated capacity of 11.10 million tonnes per annum. The Cement Corporation

of India, which is a Central Public Sector Undertaking, has 10 units. There are 10

large cement plants owned by various State Governments. The total installed

capacity in the country as a whole is 159.38million tonnes. Actual cement

production in 2002-03 was 116.35 million tones as against a production of 106.90million tonnes in 2001-02, registering a growth rate of 8.84%. Major players in

cement production are Ambuja cement, Aditya Cement, J K Cement and L & T

cement. Apart from meeting the entire domestic demand, the industry is also

exporting cement and clinker. The export of cement during 2001-02 and 2003-04

was 5.14million tonnes and 6.92 million tonnes respectively. Export during April-

May,

2003 was 1.35 million tonnes. Major exporters were Gujarat Ambuja Cements Ltd.

and L&T Ltd.The Planning Commission for the formulation of X Five Year Plan

constituted aWorking Group on Cement Industry for the development of cement

industry.

The Working Group has identified following thrust areas for improving demand

for cement;

I. Further push to housing development programmes;II. Promotion of concrete Highways and roads; and

III. Use of ready-mix concrete in large infrastructure projects.Further, in order to improve global competitiveness of the Indian CementIndustry, the Department of Industrial Policy & Promotion commissioned a

study on the global competitiveness of the Indian Industry through an

organization of international repute, viz.

Cement industry has been decontrolled from price and

distribution

on 1stMarch 1989 and de-licensed on 25th July 1991. However, the

performance of the industry and prices of cement are monitored regularly.

Being a key infrastructure


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industry the constraints faced by the industry are reviewed in the

Infrastructure Coordination Committee meetings held in the Cabinet

Secretariat under the Chairmanship of Secretary (Coordination). The

Committee on Infrastructure also reviews its performance.

Technological change

Continuous technological upgrading and assimilation of latest technology has

been going on in the cement industry. Presently 93 per cent of the total

capacity in the industry is based on modern and environment-friendly dry

process technology and only 7 per cent of the capacity is based on old wet and

semi-dry process technology. There is tremendous scope for waste heat

recovery in cement plants and thereby reduction in emission level. One

project for co-generation of power utilizing waste heat in an Indian cement

plant is being implemented with Japanese assistance under Green Aid Plan.The induction of advanced technology has helped the industry immensely to

conserve energy and fuel and to save materials substantially. India is also

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

Portland Pozzolana Cement(PPC), Portland Blast Furnace Slag Cement (PBFS),

Oil Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting

Portland Cement, White Cement etc. Production of these varieties of cement

conform to the BIS Specifications.

Also, some cement plants have set up dedicated jetties for promoting bulk

transportation and export.

State- wise major cement plants

STATE NO. OF PLANTS CAPACITY mt

Andhra Pradesh 24 23.96

Assam 1 0.20

Bihar 1 1.oo

Chhattisgarh 9 10.36

Delhi 1 0.50

Gujrat 12 17.12

Haryana 1 0.17Himachal pradesh 4 4.06


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J and k 1 0.20

jharkhand 5 4.57

kernataka 9 10.07

Kerla 1 0.42

Madhya pradesh 12 16.39

maharastra 8 10.95meghalya 1 0.20

orissia 3 2.76punjab 3 2.84

Rajyastan 14 17.95

Tamil nadu 13 14.79

Utter pradesh 7 5.07

West bengal 4 3.13

Total 134 146.71

Current status of Indian cement industry

The Indian cement industry has grown remarkably in the last two decades to

emerge as the second largest in the world after china. In terms of technology

,quality and productivity, India cement industry is remarkably is undeniably

at the top. Today, the country has 134 major plants with an installed capacity

of 146.71million tones. There are also 60 surviving mini and tiny units with a

capacity of6.3 million tones . The combined capacity of the cement industry is

153.01million tones . in recent years , the production of blended cement has

increased in India as more and more companies shifting their emphasis from

once to blended cement.

With increased cement production, the cement supplies have increased

substantially resulting into depressed prices, with producers are getting

inadequate returns on their investment, affecting the bottom lines of several

companies. Today, the Indian cement industry is passing through are

alignment and consolidation. Multi nationals have a strong entry in the cement

market and are trying to get their presence by acquisitions and mergers. The

per capita consumption of cement in India, which currently is very low at 99kg, has huge scope of growth. According to industry sources with the intiative

taken by the government on the infrastructure, particularly the north and

south corridor particularly known as golden qualidateral the working

group on the cement industry constituted by the planning commission

Introduction of Jk cement limited

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

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


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Our cement operations commenced commercial production in May 1975 at

our first plant at Nimbahera in the state of Rajasthan. At Nimbahera, we

started with a single kiln with a production capacity of 0.3 million tons. We

added a second kiln in 1979 with production capacity of 0.42 million tons, and

a third kiln in 1982with a production capacity of 0.42 million tons. We added aprecalciner with acapacity of 0.4 million tons in 1988, which increased our

capacity at Nimbaherato 1.54 million tons. During the years 1998 through

2003, we continued to implement modifications to each of our kilns, which

increased our aggregate capacity at Nimbahera to 2.8 million tons as of

September 30, 2005.

We commissioned a second grey cement plant at our Mangrol plant in 2001,

with a production capacity of 0.75 million tons. As of September 30, 2005, we

had an aggregate production capacity of 3.55 million tons per annum of grey

cement .Our white cement plant was completed in 1984 with a capacity of

50,000 tons. Our continuing modifications to the plant have increased its

production capacity to 300,000 tons as of September 30, 2005.

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

Northern India. We are also the second largest white cement manufacturer in

India by production capacity. While the grey cement is primarily sold in the

northern India market, the white cement enjoys demand in the export market

including countries like South Africa, Nigeria, Singapore, Bahrain, Bangladesh,

Sri Lanka, Kenya, Tanzania, UAE and Nepal.

Our access to high quality limestone reserves that are suitable for production

of white cement provides us with a competitive advantage. Based on geological

surveys conducted by independent agencies on our mines between 1996

and2001, our limestone reserves for both grey and white cement are expected

to meet our existing and planned limestone requirements of 4.0 Mn TPA of

grey cement and 0.4 Mn TPA of white cement, for approximately 40 years.

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

backdrop of Indias infrastructural growth in an overdrive, we are upbeataboutthe future. We are confident of contributing heavily in Indias journey of

development. We see a world of concrete ideas on the horizon.

Types of product of JK cement

Grey cement produced by us consists of OPC and PPC. There are also other

cements in the market that we do not produce, such as Portland slag cement,

oil well cement, sulphate resistant cement, rapid gardening cement, low alkali

cement, low heat cement and super finish cement.OPC has three grades that

we produce, that are differentiated by their compressive strengths, expressedin mega Pascal (MPa), as specified by the BIS.These grades are 53-grade


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OPC,43-grade OPC and 33-grade OPC, with 53-grade OPC having the highest

compressive strength.The customer selects the grade of OPC based on the in

tended application. Our most popular cement, by sales volume, is 43-

gradecement, with 53-grade cement being used in applications which require

highstrength characteristics.

Ordinary Portland Cement

OPC is produced by inter-grinding cement clinker prepared in a rotary cement

kiln with gypsum. Each metric ton of OPC requires approximately 0.95 metrict

ons of clinker and approximately 0.05 metric tons of gypsum. The range of

applications, the physical and chemical requirements specified by BIS and

strength of the three grades of OPC are discussed below:

53-grade OPC (IS:12269-1987): 53-grade OPC is a high strength cement.According to the BIS requirements, 53-grade OPC must have a 28-day

compressive strength of no less than 53 Map. For certain specialized products

such as pre-stressed concrete and certain pre-cast concrete items requiring

highstrength, 53-grade OPC is considered useful as it can produce high-grade

concrete at lower cement content levels. We produce 53-grade OPC by

exposing the clinker to the grinding process for longer period of time,which

results in a higher density and stronger cement. As the grinding process

requires a significant amount of power, finer grinding for the 53-grade OPC

requires more power and is therefore priced higher compared to lower grades

of OPC.53-gradeOPC can be used for the following applications:

Portland Pozzolana CementWe also manufacture PPC (IS:1489 (Part-1) 1991) under the brand name

J.K.Super. PPC is also known as blended cement or silicate cement, and this

blended cement has become increasingly popular in the market in recent

years .Each ton of PPC requires approximately 0.75 tons of clinker, 0.05 tons of

gypsum and 0.20 tons of fly ash, a pozzolanic material that is a by-product of

thermal power plants. In the manufacture of PPC, a portion of the clinker is

replaced with fly ash. This enables the cement manufacturer to produce a

higher quantity of cement per ton of clinker. As a result, the cement

manufacturer canin crease its production capacity by making a limited

investment in grinding capacity without a corresponding investment in earlier


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.stage production equipment such as kilns .Further, the only cost incurred for

fly ash is transportation cost from the thermal power plants that generate it to

the cement manufacturing site, as fly ash is currently available free of cost. The

use of fly therefore significantly reduces the overall cost of production of

cement.The advantage of PPC is its low heat of hydration and correspondingresistance to exposure to various environmental chemicals such as salt water.

It is particularly suitable for marine and hydraulic construction and other

crete structures. This cement has durability that is equivalent to OPC and can

be used most of the applications where OPC is used. As PPC is generally sold

ata comparable price to OPC and the cost of production of PPC is

comparatively lower, PPCs margins per ton are generally higher compared to

OPC.

White cements

We manufacture white cement under the brand names J.K. White and Camel.

White cement is produced using a different quality of limestone and is

distinguished from grey cement by its white colour. Each ton of white cement

requires approximately 1.33 tons of limestone, 0.02 tons of gypsum and 0.2

tons of additives including white clay, feld sparand fluorspar.White cement is

typically used in three principal areas of application, as set forthbelow:

Flooring, for the manufacturing and laying of mosaic tiles and as tilefixing grout ,wall applications, such as decorative white cement paints

and plain and spray plasters;


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And White cement is typically used in three principal areas of

application, as set forthbelow:

Flooring, for the manufacturing and laying of mosaic tiles and as tilefixing grout ,wall applications, such as decorative white cement paintsand plain and spray plasters; and Other specialized applications

including glass fibre reinforced concrete, garden furniture, lamp posts,

as pointing for brick and stone works and as pre-cast cladding panels.

We sell white cement primarily in the Indian market. We also export white

cement to a number of countries, including South Africa, Nigeria, Singpore

,Bangladesh, Sri Lanka, Kenya, Tanzania, United Arab Emirates and Nepal.

Plants of jk cements limited

We manufacture grey cement in two facilities located at Nimbahera and

Mangrolin the state of Rajasthan in Northern India. White cement is produced

at our facility at Go tan in the state of Rajasthan. Our plants have obtained

many accolades and recognition, the most noteworthy being : ISO-9001:2000

QMSand ISO-14001:2004 EMS for the grey cement facility at Nimbahera andISO-

9001:2000 QMS, ISO-14001:1998 EMS & OHSAS-18001:2005 Occupational

Health and Safety for the white cement facility at Gotan. Theconstruction of

our first most modern dry cement plant began in 1970 inNimbahera in

Rajasthan.

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

Mangroland Gotan cement facilities for the periods indicated:

PRODUCTION (IN METRIC TONES)FISCAL 2003 FISCAL 2004 FISCAL 2005 SIX MONTHS

ENDED

SEPTEMBER

30,2005

NIMBEHARA 2323283 2414196 2,414,196 1.256,942

MANGROL 570464 912419 9,12, 419 4,93,211

GOTAN 200149 224481 224,481 99343


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PRODUCTION (IN METRIC TONS) Six months ended

Fiscal 2003

Fiscal 2004

Fiscal 2005 September 30, 2005 2,323,283 2,272,760 2,414,196 1,256,942

Nimbahera

16. 570,464 718,572 912,419 493,211 Mangrol 200,149 215,538 224,481

99,343 Gotan Nimbahera Unit (Grey Cement)Commenced commercial

production in 1975 with an initial capacity of 0.3MnTPA. In the year 1979,

second production line was added to enhance theproduction capacity to 0.72

MnTPA. 1982 witnessed the incorporation of anotherproduction line taking

the production capacity to 1.14 MnTPA. In 1988 a pre-calciner was installed

and the production capacity touched 1.54 MnTPA.Constant modernization and

up-gradation was instrumental in bringing the plantto its present capacity of

2.8 MnTPA.Capacity utilization of around 90%Can produce up to 3.1 MnTPA

with production of silicate cement on capacity of2.8 MnTPARecognition : ISO-

9001:2000 QMS and ISO-14001:2004 EMS

17. Mangrol Unit (Grey Commenced commercial production inDec2001 with a capacity of0.75 MnTPA. Its close to Nimbahera plant (10kms

away) offers itsignificant synergy benefits like assistance from technical

18. The production process

The production process for cement consists of drying, grinding and

mixinglimestone and additives like bauxite and iron ore into a powder known

as rawmeal. The raw meal is then heated and burned in a pre-heater and kiln

and thencooled in an air cooling system to form a semi-finished product,

known as aclinker. Clinker (95%) is cooled by air and subsequently ground

with gypsum(5%) to form Ordinary Portland Cement (OPC). Other forms of

cement require increased blending with other raw materials. Blending of

clinker with other materials helps impart key characteristics to cement, which

eventually govern it send use. The basic differences between these processes


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are the form in which the raw meal is fed into the kiln, and the amount of

energy consumed in each ofthe processes. In the dry process, the raw meal is

fed into the kiln in the form of a dry powder resulting in energy saving,

whereas in the wet process the raw mealis fed into the kiln in the form of

slurry. There is also a semi-dry process, whichconsumes more energy than thedry process but lesser than the wet process . The basic steps involved

in the production process is set out below:

Dry process

J.K. Cement plants are dry process plants. Limestone is crushed to a uniformand

usable size, blended with certain additives (such as iron ore and bauxite)

and discharged on a vertical roller mill, where the raw materials are ground to fine

powder. An electrostatic precipitator dedusts the raw mill gases and collects the raw

meal for a series of further stages of blending. The homogenized raw meal thus

extracted is pumped to the top of a pre heater by air lift pumps. In the preheaters the

material is heated to 750C. Subsequently, the raw meal undergoes a process of

calcination in a pre calcinator (in which the carbonates present are reduced to

oxides) and is then fed to the kiln. The remaining calcination and clinker ization

reactions are completed in the kiln where the temperature is raised to between

1,450C and 1,500C. The clinker formed is cooled and conveyed to the clinker silo

from where it is extracted and transporte dto the cement mills for producing

cement. For producing OPC, clinker and gypsum are used and for producing

Portland [Pozzolana] Cement (PPC),clinker, gypsum and fly ash are used. In the

production of Portland Blast Furnace Stag Cement (PSC), granulated blast furnace

slag from steel plants is added to clinker. Awards given to the JK White cements

limited Architect of the Year Award (AYA)Architecture was more or less identified

with housing & more so with elitehousing.

.awards given to cement

If these structures have to look pleasing, relevant architecture has to beapplied in their designs.The subject of challenges to architecture vis-a-vis

town planning, infrastructure development & affordable housing is being

discussed in various countries through various forums. Mr.Yadupati

Singhania, Managing Director,J.K. Cement Ltd., thought that we could

contribute to this cause by encourage in go utstanding talent in the profession

of architecture as a continuous process &thereby set an example for others in

this profession to do better & better.This is how Architect of the Year Award

(AYA) began way back in the year 1990(1st Architect of the Year Award).

Awards were subsequently extended to architects of neighbouring countries

from the year 1996 (7th Architect of the YearAward). To encourage state level


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architecture, State Architecture awards were also introduced from the award

year AYA-98 (9th Architect of the Year Award) Quality policy Technologies

change, needs change, and in turn products change. What remain unchanged,

are values and ideas that propel any entity forward. Ideas that are concrete

and unwavering, just like their outcome.At JK Cement we are crossingmilestones, one after another, propelled by the following concrete ideas :1. To

provide products that fully comply with technical specifications committed to

our customers, at the most competitive price.

21. 2. To ensure complete reliability in our dealings with customers,

distributors ,suppliers & other partners.3. To operate our manufacturing

facilities in such a way, that they help sustain the environment & provide new

opportunities for the underprivileged in thatregion.4. To ensure that every

department of our every office encourages new & better ideas and freedom of

expressing the same, and cultivate a work environment that rewards

excellence in every employees chosen area of work leading to aharmonious &

fulfilling atmosphere.5. To motivate every team member to challenge his last

best performance an dout do it continually6. To remain abreast and imbibe

the latest technological trends for the benefit of our customers.

22. The rationale of the studyAs my project topic suggests, I have tried to find

out the CUSTOMERSATISFACTION AND MARKET POTENTIAL OF JK WHITE

CEMENTSThis topic was chosen mainly to find whether the customers who buy

JKCEMENTS require some more modifications in the brand i.e.changes in price

or improvement in the quality of the cement etc.the quality of the cement and

for this purpose people from different strata werechosen like general

customers, dealers, masons, bulk consumers etc I have used questionnaire

and other scientific tools like personnalinterviews and telephonic interviews

to know about the customer mood and theI have also tried to find the market

potential of jk cement in Delhi and NCR. Forthis I had conducted market

research in different parts of Delhi like Sarita vihar ,Nehru plce, some parts of

Ghaziabad, Gurgaon and faridabad.For this I met different dealers , retailers

and masons as well as industrial bulksuppliers in different parts of the DELHI

NCR

23. Scope of the study

This study includes direct interaction with the customers and this helps us to

know the Market potential and customer satisfaction level to great accuracy.

This study is of great importance to the company which will knowabout the

customer preference to buy a particular brand. The company will gain

information about customers preference depending on the following factors:-

1. Price factor


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2. fineness of the cement

3. setting time

4. attractive packaging

5. brand imageone of the important factor 6. quick delivery time

7. wide availability So , scope of this study is to achieve customer satisfaction

because customer satisfaction and quality maintenance is companys primary

objective

24.

of the study:

-Main objective:- The main objective of this study is to find out

ObjectiveHowever, manycountries have used architecture effectively for publicstructures also, such as

highways, metro.

the MARKETPOTENTIAL AND CUSTOMER SATISFACTION LEVEL through

scientific toolslike interviews and questionnaire .Specific objectives:- The

specific objectives will be met by finding the customersatisfaction level

through direct interaction with the customer and by knowingtheir preference.

This will include all the processes like asking questions fromthe customers

through questionnaire which will be included in the primary survey. once the

primary survey is done , secondary survey will be done . The path ofthe

secondary survey will be decided depending on the conclusions coming outof

the primary survey.

25. Research methodology

Data collection methodI have selected around 50 persons for the the

interview.I have taken help of the questionnaire , personal and Telephonic

interview. I have collected the data through focus interviews. I have

concentrated on taking interview mainly from the following group of people.1. Masons20%


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2. Architects/ engineers--- 10%

3. Retail stockiest---- 2 4.

Wholesale---- 10%

5. Industrial bulk consumer10%

6. General consumer---- 30%

26. The survey was descriptive and sample chosen was mainly on the

judgement of the researcher with the help and proper consultation of project

guide.. In this kind of sampling method , the population elements are based on

thejudgement of the researcher. The researcher exercises judgement or

expertise ,chooses the elements to be included in the sample , because he or

she believesthat they are represntative of the population of intrest or areotherwiseappropriate.In this survey , I visited the dealers of cement also to

know the strategy of thecompanies , especially jk cements to satisfy the

customer as they buy thecement of any particular company. The main

purpose of the descriptive research is description of the state ofaffairs as they

exist at present

.Swot analysis of JK white cements Strengths : 1. Leadingposition in attractive Northern India grey cement market:

Based on CMA data, Northern Indian cement manufactuers haveconsistentlyoperated at the highest levels of capacity utilization among Indias

five regions.We believe this reflects the strong demand in Northern India for

cement productsrelative to supply. Further, based on capacity expansions

announced by cementmanufacturers, we expect cement plants in Northern

India to continue to operateat high utilization levels and anticipate continued

strong demand for our greycement products in the near and medium-term. We

believe that we are well

27. positioned to take advantageof this demand, as the fourth largest grey cement manufacturer in Northern

India, and the largest grey cement manufacturer in the state of Rajasthan. 2.

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


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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. 3. Proximity and access to large

reserves of high quality limestone: We have access to large reserves oflimestone for both our grey and white cement operations, which we believe

are sufficient to sustain our operations well into the future. Based on

independent geological surveys of different mines during 1996 to 2001, we

believe that our limestone reserves are sufficient to support our current and

planned capacity for approximately 40

28. 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. 4. Quality of products and

strong brand name: We believe that brand name and reputation are important

to retail purchasers of cement in India. We have built a strong reputation

among cement purchasers by consistently providing high quality products. We

believe that there is strong customer awareness of our brands, JK Cement

(Sarvashaktiman), for grey cement in our principal market in Northern

India, and JK White (Camel), for white cement across India. Further, we

believe that our brand name and our reputation for consistently supplying

high quality products provide us with a competitive advantage in ensuring

that cement dealers carry our products. 5. Extensive marketing anddistribution network: We have a wide distribution network for grey cement in

Northern India. Wealso have a strong all-India distribution network for white

cement. Our distributionnetwork for grey cement products consists of 44

feeder depots serviced by sevenregional sales offices in Delhi, Haryana, Uttar

Pradesh, Punjab, Rajasthan,Madhya Pradesh and Gujarat. Our white cement

network comprises 20 feederdepots serviced by 13 regional sales offices in

Delhi, Chandigarh, Uttar Pradesh,West Bengal, Andhra Pradesh, Tamil Nadu,

Karnataka, Kerala, Maharasthra,

29. Gujarat, Madhya Pradesh and Rajasthan. In addition, we have more than

4,000retail stores that stock our grey and white cement products, as well as 22

salespromoters and four handling agents. We believe that the extent of this

network,and our relationships with our dealers, enables us to maket and

distribute ourcement widely and efficiently.6. Experience and technical know-

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

believeprovides us with the skills to maximize production efficiency, expand

productioncapacity quickly and reduce costs. Over the years, we believe that

we havedeveloped long-term customer relationships and a strong reputation

for quality. Inaddition, we have a proven track record of upgrading and

modernizing ourproduction capabilities efficiently, having increased our


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production capacity atNimbahera by more than 80%, from 1.54 million tons in

1998 to 2.8 million tonsas of September 30, 2005.Weaknesses : 1. It is at

relatively low position in other parts of the country except north. 2. Low

attention on customer relationship management in some parts of INDIA.

30. 3. No high revenue from the white cement market because there are only

two players who have considerable market share and this has resulted in the

stable cash flows. 4. Due to presence of other cement producers in Delhi and

its adjoining areas the market share of the JK cement remains low. 5. It has its

own mines reserves but it has to consistently renew the lease failing which it

will have no source of production at its major production site. Opportunities :

1. Rural projects of state governments and central governments like dams and

bridges can be a major opportunity for the company. 2. Company is a part of

reputed and huge jk group. So it can expand its market in foreign areas also

utilizing its brand leverage. 3. Prestigious Projects can be major opportunities.

4. It has major opportunities in real estate industry due to boom in the

relatedprojects. 5. Indian infrastructure is seeing a two fold increase. So there

is also a lot ofopportunity in the concerned sector 6. Major foreign projects of

governments can also be a major opportunity.

31. Threats 1. Cost of production is high. So company needs to reduce the cost

of production and should concentrate on promotional schemes too. 2.

Presence of other big players in delhi region is a major threat for the company.

3. Rising cost of raw material is also a threat for the company Marketing

strategy of jk cements limited 1.SEGMENTATION:- The company has

segmented the market geographically . it sells its products all ovwer India with

major presence in northern region PRICING STRATEGY1. . Before deciding the

price of the cement company has considered the following points:-- Cost

factor:- Manufacturing cost Transporting cost Storing and material handling

Other cost Officer expenses Other expenses Tax and interest Competitors

price and offering

32. MARKETINGSTARTEGYCompany

conducts market surveys to identify market trends and customersresponse,

company position in the market etc. There is R and D departmentwhich

continuously trying to improve the quality of the product at theminimum cost

and trying to meet the demand of the customer. MARKETRING STRATEGY FOR

COMPETITORSCompany always keeps an eye over its competitors activities

and itsofferings like different promotional schemes, product price etc. It also

takesproper action according to competitors strategy. DISTRIBUTION

STRATEGYThe company is distributing cement by following ways:-Direct to

consumerDepot1.whole seller2.retailer


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33. Director General of sales and disposal1. Tender sales2. Government

departmentNon trading sales1 wagon load2. Institutional sales Method of

developing dealers:-Company conducts the market survey also to motivate the

sub dealer andadvertise the programmer. The company takes profile of the

dealers andgives dealership only to those in a particular area where thecompany is nothaving already existing dealer. MARKETING STRATEGIES1. To

increase sales in high realization2. To develop stockiest network consisting of

retailer or final outlet whichdirectly sells to customer.3. Increasing sales of

branded cement ie jk white cements4. Marketing distribution network more

efficient and cost effective. The company has a dedicated team of highly skilled

professionals andExperienced application engineering. They are functioning

in an advisorycapacity. Besides handling their constructional problem the cell

offering all

34. kind of assistance in the selection of the right cement for different

applicationto ensure cost effective , durable and safe construction.

35. DATA ANALYSISIn this section , we will analyze the data which was

obtained through different means ofdata analysis like questionnaire, personal

interviews. Since this survey was related tothe cement industry, so people

related to it like masons, bulk consumer , retailer andabove all general

consumer were interviewed. The whole data analysis section is done with help

of different charts, barsand other techniques available. The interview was

mostly done on selectedpersons of selected category. I have done survey

mainly on the basis of followingstructure..1. Masons20%2. Arch/

Engineers10%3. Retail stockists--- 20%4. Wholesalers--- 10%5. Bulk

consumers10%6. General consumer30%For doing the survey , a

questionnaire was designed as a scientific tool so as toknow the customers

attitude towards the satna cement works limited. The main purpose of this

survey was to know the customer satisfactionlevel. This survey was done

partially DELHI and somepartsd of NCR also. Someother parts of the country

like the neighboring UP was also touched for thesurvey.

36. DATA ANALYSISThis page and onwards will contain step by step analysis of

cement? 1. MASONS Choices / options No of respondents 1. Extremely

important 3 2. Rarely important 2 3. Not at all important 0 Importance of price

respondents 4 3 no of 2 1 0 Extremely Rarely important Not at all important

important choices /options

37. 2. Arch / engineers Options / choices No of respondents 1.Extremely

important 2 2.Rarely important 1 3.Not at all important 0 2 1.5 1 0.5 0

Extremely Rarely Not at all important important importantQ .2 Do you

consider colour of cement as an important factor for buying of thecement? 1.


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the selection ofany Cement.Q5. Do you prefer the cement which is very fine

(i.e. fineness of the cement)?1. Masons

43. Parametrs No of responses recieved1. Sometimes 12. Always 23. Never

14.Cant decide 1 Fineness of the cement2.5 21.5 10.5 0 Sometimes Always

Never Cant decide2. Retail stockiestOptions Response1. Sometimes 12. Always

33. Never 14.Cant decide 0 Sometimes Alw ays Never Cant decide

44. 3. General customerChoices / options Responses1. Sometimes 32. Always

33.Never 14.Cant decide 0 3.5 3 2.5 2 1.5 1 0.5 0 Sometimes Always Never Cant

decideWe can interpret from the response received that fineness of the

cement is one of theImportant factor that consumer takes into account while

buying a cement.Q6. How many retailers of Ambuja Cement do you find in your

city?1. MasonsNo. of retailers Response1 . 1-5 22. 5-7 33. 7-10 04. More than

ten 0

45. no. of retailers 4 3 2 1 0 one-five five-seven seven -ten more than 102.

WholesalersOptions NO. Of responses1. 1-5 12.5-7 23.7-10 04. more than 10 0

3 2 1 0 one-five five-seven seven -ten more than 10The response received from

the customers indicate that there are enoughcement retailers in their city.7. If

you were a dealer Which type of schemes and incentives do you exceptfrom

the company?Options No of responses1. Gift items given 12. Award for best

retailing 23.Promoting certain incentive 0

46. schemes4.Educate about the 0companys policy5. Foreign tours 2It isevident that the retailers want awards, tours and gifts on equal basis. 2.5 2 1.5

1 0.5 0 gifts items awards incentive education foreign tours schemes8. Do you

find your desired cement easily in your city?1.MasonsOptions

Responses1.sometimes 22.Always 23.Never 1

47. sometimes always never2. Industrial bulk consumeroptions No. of

respondents1. Sometimes 12.Always 23.Never 0 2 1.5 1 0.5 0 sometimes alw

ays never3. General customer choices responses 1. sometimes 2 2. never 1 3.

always 4

48. 5 4 3 2 1 0 sometimes never alwaysQ 9. Which medium of information

made you aware about satna cements?1.General customerOptions Level of

responses1. Newspapers 22.Hoardings 33. TV ads 14. Meeting with dealers 1

3.5 3 2.5 2 1.5 1 0.5 0 newspaper hoardings tv ads meeting with dealers

49. 2. Industrial bulk consumeroptions No of respondents1.Newspaper

02.Hoardings 13.Tv ads 04.Dealers meet 2Analysis of this question reveals

that hoardings are the best means of thecommunication as any illiterate

person can also read the various signs whichcould be there on the

hoardings.. and also there should be regular dealer newspapermeeting to


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know the customer aware of the cement hoardings tv ads meeting with

dealersQ9. Do you find compressive strength of the cement as a major factor

whilebuying any cement?1. Masons.Options Response rateVery much 3Not

much 2Cant decide 0 3.5 3 2.5 2 Series1 1.5 1 0.5 0 very not much cant much

decide2. General customer

50. Options Response levelVery much 5Not much 1Cant decide 1 6 5 4 3 2 1 0

very much not much cant decideAnalysis of this question reveals that

customers dont comprise on the matter ofqualityQ 10. Is the response time

of the company to the complaints satisfactory?1. WholesalersParameters

Response level1. Satisfactory 12.Good 13. Not so good 14. Not sure 02. General

customerParameters Response level1. Satisfactory 32 Good 23. Not so good 14.

Not sure 1 Hence , we analyze that response time of the company to the

complaints is overall satisfactory.

51. Chapter

northern part of India and some parts of UP. So market potential of the JK

size was not enough and it failed to give the clear picture or the results of the

potential of JK cements limited.

52. FindingsOn the basis of analysis of the questionnaire and data analysis, we

find that:----1. Market potential of the Jk cement limited is very good in the

northern partsdespite the presence of so many branded cement companies

like ACC ,GUJRAT AMBUJA etc.2.Customer satisfaction with respect to the JK

cement is satisfactory.

53. 3. Despite the increasing cost of the raw material the company is able to

bringdown the cost of manufacturing through procurement of raw materials

by themines which are located nearby .3. Customers come to know about JK

cements mainly from hoardings as manypeople are illiterate .4. Customerswant more prizes and dealers want more incentives , gifts andtours.Dealers

also want more meeting with officials of the cement companies.5. Bulk

consumers want more and more cash discount. Suggestions1. The company

should concentrate on more aggressive advertisement topromote their

products.2. The company should launch more and more promotional schemes

like twofor the price of one or more discount coupons.3 Company should do

more to promote their brand as customer prefer goodbrand while buying any

cement.

54. 4. Customer prefer price as an important factor


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while buying any cement so the company should fix the price accordingly.5.

Company should concentrate on direct meeting with the customer as they are

the most vital element in deciding the growth or decline of any

company.6.Company should decrease the response time to the complaint

received.7.The company should fix certain amount of cement especially for thedealers and give them free of cost as incentives.8. The company should

appoint more and more persons for the promotions of thebrand.9. The

company should expand its market and concentrate in deep penetration in

northern part of India.10. Company should decrease delivery time of the

cement. BIBLIOGRAPHY 1. www.jkcement.com 2. www.jk-white.com/ 3.Labour

and Industrial chronicle-- Survey of major cement plants 4. Marketing

researchNaresh kumar Malhotra , Pearson education 5. Marketing

ManagementPhillip Kotler

mandeep project

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