opportunity in cement transportation for 2009-10 in north east

8/3/2019 Opportunity in Cement Transportation for 2009-10 in North East.

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OPPORTUNITY IN CEMENT TRANSPORTATION

FOR 2009-10 IN NORTH EAST

A Study Project

Submitted to University of Pune in partial fulfillment of the

requirements for the

Award of Masters Degree Course in Marketing Management

2008 2010

Submitted by: Under Guidance:

Sandeep Bhati Prof. Shon P. John

SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION

AND COMPUTER APPLICATION, LONAVALA


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PREFACE

The research provides an opportunity to a student to demonstrate application of his/her

knowledge, skill and competencies required during the technical session. Research also helps

the student to devote his/her skill to analyze the problem to suggest alternative solutions, to

evaluate them and to provide feasible recommendations on the provided data.

The research is on the topic of OPPROTUNITY IN CEMENT TRANSPORTATON

FOR 2009-10 IN NORTH EAST

Although I have tried my level best to prepare this report an error free report every effort has

been made to offer the most authenticate position with accuracy.


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ACKNOWLEDGEMENT

I would like to thank myMr. Vijay Sharma, Area Manager,

Tata Motors, without whoman internship with, Tata Motors would not have been possible. I am grateful to him for having

taken time off his busy schedule and spoken to the concerned person to get me this

internship. I express my gratitude to the Tata Motors for having given me an opportunity to

work with them and make the best out of my internship. I thank my trainers, Mr. Gunjan

Pandey for having trained me and constantly guided and supported me throughout the

training period. My heartfelt gratitude also goes out to the staff and employees at Tata Motors

for having co-operated with me and guided me throughout two months of my internship

period. I thank my school, Sinhgad Institute of Business Administration and ComputerApplication for having given me this opportunity to put to practice, the theoretical

knowledge that I imparted from the program. I thank the internship co-coordinators, Mr.

Shon P. John for having guided and supported me through the course of the internship. I take

this opportunity to thank my parents and friends who have been with me and offered

emotional strength and moral support.

(Signature of the student)


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DECLARATION

I declare that the project entitled OPPROTUNITY IN CEMENT TRANSPORTATON

FOR 2009-10 IN NORTH EAST of Tata Motors. In Guwahati is a record of independent

research work carried out by me during the academic year 2009-2010 under the able guidance

of my faculty guide Prof. Shon P. John of Sinhgad Institute of Business Administration And

Computer Application, Lonavala.

I also declare that the project is the result of my effort and has not been submitted to any

other University or Institution for the award of any degree, or personal favor whatsoever. All

the details and analysis provided in the report hold true to the best of my knowledge.

PLACE: GUWAHATI SANDEEP BHATI

DATE: 31 JULY, 2009


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ABBREVIATION

MT Million Tonne

TPD Tonne per Day

CPP Captive Power Plant

MTPA Million Tonne per Annum

MCL Meghalaya Cement Limited

CMCL Cement Manufacturing Company Limited

NHAI National Highway Authority of India

NHPC National Hydroelectric Power Corporation

NEEPCO North Eastern Electric Power Corporation

NTPC National Thermal Power Corporation

OPC Ordinary Portland Cement


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INDEX

CHAPTER CONTENTS Page No.

1. Introduction 1-12

1.1 Overview of Industry as a whole 2

1.2 Profile of the Organization 3

1.3 Problem of the Organization 11

1.4 Competition information 11

1.5 SWOT Analysis 12

2. Research Methodology 13-17

2.1 Objective 14

2.2 Scope of the Study 14

2.3 Methodology 142.4 Limitation 17

3. Conceptual discussion 18-37

3.1 Overview of the cement companies in North East 19

3.2 Manufacturing process of cement 23

3.3 Brief about the cement companies 31

3.4 A few facts why cement manufacturing unitscoming in Meghalaya

37

4. Data Analysis 38-48

5. Findings 49-50

6. Conclusions and Suggestions 51-536.1 Conclusions 52

6.2 Suggestions 53

Appendices 54

Bibliography 59


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LIST OF TABLES

TABLE

NO.

TITLE Page No.

3.1 NATIONAL DEMAND FORECAST 19

3.2 FUTURE CEMENT CONSUMPTION IN ASSAM 213.3 FUTURE DEMAND SUPPLY GAP N NORTH EAST 22

3.4 CONSUMPTION NORMS 24

3.5 SOURCES OF RAW MATERIAL FOR MCL 31

3.6 NORMS OF STROAGE CAPACITY 32

3.7 SOURCES OF RAW MATERIAL FOR JUD 33

3.8 SOURCES OF RAW MATERIAL FOR CMCL 34

3.9 SOURCES OF RAW MATERIAL FOR ADHUNIK CEMENT 35

3.10 SOURCES OF RAW MATERIAL FOR HILLS CEMENT 36

4.1 FLEET DATA 394.2 BRAND COMPARISION 41

4.3 PAYLOAD TONNE 42

4.4 MILLEAGE 43

4.5 LIFE OF TYRE 44

4.6 FRIEGHT RATE 45

4.7 ADDITIONAL REQUIREMENT OF TRUCKS BYTRANSPORTER

46

4.8 FORECASTING OF CEMENT PRODUCTION 47

4.9 PER DAY REQUIREMENT OF TRUCKS BY CEMENT UNIT 48

5.1 CEMENT PRODUCTION IN NORTH EAST 50


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LIST OF FIGURE

FIGURE

NO.

TITLE Page No.

3.1 NATIONAL DEMAND FORECAST 20

3.2 FUTURE CEMENT CONSUMPTION IN ASSAM 213.3 FUTURE DEMAND SUPPLY GAP N NORTH EAST 22

3.4 PRODUCTION PROCESS 25

3.5 CEMENT SUPPLY CHAIN 27

4.1 FLEET DATA 39

4.2 BRAND COMPARISION 41

4.3 PAYLOAD TONNE 42

4.4 MILLEAGE 43

4.5 LIFE OF TYRE 44

4.6 FRIEGHT RATE 454.7 ADDITIONAL REQUIREMENT OF TRUCKS BY

TRANSPORTER46

4.8 FORECASTING OF CEMENT PRODUCTION 47

4.9 PER DAY REQUIREMENT OF TRUCKS BY CEMENT UNIT 48


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EXECUTIVE SUMMARY

Project title : Opportunity in cement transportation for 2009-10 in North East

Duration :Two Months (1

st

June to 31

st

July 2009)

Organization Guide : Mr. Gunjan Pandey

Academic Guide : Mr. Shon P. John

Project Objective:

The basic objective of the research was to analyze the impacts of upcoming cement

manufacturing units in North East on the sale of Tata Motors Medium and Heavy

Commercial Vehicle (M&HCV) along with analyzing the perception of the customers buying

Medium and Heavy Commercial Vehicle (M&HCV) in North East and also to suggest the

effective measures to reduce the outcomes of the company.

Methodology:

Survey Method was used to collect primary data. The primary data from the samples under

study were collected by using a questionnaire.

Sources of information:

Primary data was collected by administering a survey among the various truck owners in

Guwahati area as this is the main place where majority of the trucks are parked.

Research Instruments:

Personally structured questionnaire and personal interview with the cement companies and

the transporters

Findings:

Here the current cement production is 14,04,000 Tonne which is going to increase by 177%(approx.) which in turn will be production of 38,88,000 Tonne in future.

The demand for cement in North East is 39,20,000 Tonne where again a deficit is present.

Here cement has to be brought from other state which is going to increase the demand of

cement transportation.


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The upcoming plant in North East region will serve as a growth booster for transportation

sector, which result increase in the sale of trucks.

At present Indian Railway is serving Guwahati, Dibrugarh, and Tinsukia only and most of the

upcoming cement plant are to be located in Meghalaya, which ultimately most of the cement

plant has to depend on road transportation, which result again increase in the sale of trucks.

ASSUMPTION: Presently 2000 Trucks (approx.) are working in cement Industry as demand

for cement is increasing by 177% (approx.) so 4000 more Trucks (approx.) is required in

North East.

North East is developing like anything in every field. So keep pace with the developments the

truck market is also bound to increase and this fact is already known from the survey as

majority of people have additional requirement of trucks to meet the ever increasing demend.

So Tata Motors can explore this development to the optimum level to increase its market

share further , gather maximum revenue and maintain the market leader position. This

research will also help TATA MOTORS to assess the current status of its trucks, to formulate

sale strategies for future and the type of vehicles to be offered in order to take advantages of

the opportunity which is present in North East in cement transportation and will also let

TATA MOTORS know the new initiatives to be undertaken to improve the product and win

the customers loyalty.


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CHAPTER-I

INTRODUCTION


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1.1OVERVIEW OF THE INDUSTRY

1.1.1 Indian Automobile Sector

The Indian economy has grown at an annual rate of more than 8% over the last 5 years and

the industrial production has made an outstanding contribution to this growth. Auto industry

was licensed, controlled and restricted n the early years of independent India and has an

limited contribution to the economy .But post deli censing in 1991 the industry has grown at

an average rate of 17%. The industry currently contributes about 5% of the GDP and it is

targeted to grow fivefold by 2016 and account for over 10% of Indias GDP .Automotive

mission plan (AMP) expects the industry to reach a turnover of $150-200 billion in the next

ten years from the current $45 billion levels. Over the last five years the production of four

wheelers in India has increased from 9.3 lakh units in 2002-03 to 23 lakh units in 2007-08

reporting a CAGR of 20%. Vehicles manufacturers are increasingly adopting an out yard

approach and exploring new markets & territories ,ranging from Middle East ,Europe ,South

Africa, Algeria, Latin America, Russia, etc. Exports have increased immensely the passenger

vehicle exports to cross 7 lakh units by 2011-12.

1.1.2 Commercial Vehicle Industry

The commercial vehicle (CV) Industry in India, as is the trend internationally, is cyclical,

with periods of volume growth leading to investments in fleet capacity and subsequently to

periods of correction. In spite of the Inherent cyclical nature, the long-term growth prospects

for the Industry remain closely linked to the development of road infrastructure, growth in

gross domestic product (GDP) and industrial production .The Indian CV industry is currently

going through demand correction following one of the longest up-cycles in its history. The

Industry which grew at a rate of above 25% over 2001-07 has grown by just 5% in FY 08.

The long up-cycle was driven by strong economic growth and investments in road

infrastructure, besides favorable regulatory changes and a benign financing environment. The

industry, on its part, has used its period of growth and the resulting financial surplus to invest

in product development and improvement in operating efficiencies. These efforts have


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resulted n industry extending its presence into newer geographies and exports have increased

at a CAGR of almost 40% over the last five years. Going forward this could help in

mitigating the effect of down cycle to an extent.

1.1.1 Structure of Indian commercial vehicle (CV) segment

The CV industry in The CV industry in India is split between the Lower Commercial

Vehicle(LCV) and medium/High Commercial Vehicle (M/HCV) segments, with the

classification being based on gross vehicle weight (GVW).According to Industry norms,

vehicles with GVW less than 7.5 tonnes are classified as LCVs while the ones heavier than

these are termed M&HCVs. In terms of usage ,CVs may be categorized as goods carriers

.Among the passenger carriers in the less than 7.5 tonne GVW segment, those with sitting

capacity up to 13 are categorized as utility vehicles (UVs, and not part of LCVs) while those

with capacity over 13 passengers are grouped as LCVs. According to Crisil statistics, the

overall CV industry s split between the LCV and M&HCV segments roughly in the ratio of

44:55. The Indian four-wheeler industry s duopolistic n nature with Mahindra and Mahindra

(M&M) and Tata Motors holding a major share in LCV segment (90.8%) and Ashok Leyland

(ALL) and Tata Motors holding a major share in M&HCV segment (88.6%).


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1.2 PROFILE OF THE ORGANIZATION

TATA GROUPS

The story of the Tata Group of business unfolds with the birth of its founder Jamshedji Tata

in the small town of Navasari in Gujarat in 1839. He breathed his last in 1904 in Germany.

His parents were Nuseerwanji and Jeevanbai Tata. Nuseerwanji was the first businessman in

a family of Parsi Zoroastrian priests. Destiny called him to Bombay where he started trading.

Jamshedji joined him at the tender age of fourteen. He took admission in Elphinstone College

and while still a student he married Hirabai Daboo. Jamshedji graduated in 1858 and joined

his fathers trading firm.

Since the age of twenty-nine Jamshedji continued to work in his fathers firm. In 1868 he

started a trading company on his own with a capital of Rs.21,000/- His first step was to

acquire a bankrupt oil mill and convert it into a cotton mill which he renamed Alexander

Mill. Two years later he sold it with a good margin of profit. With this he set up a cotton mill

in Nagpur in 1874. Queen Victoria had just been declared the Empress and in keeping with

the times Jamshedji named it Empress Mills. Jamshedji was a unique personality. He did not

just think of innovative ways of manufacturing textiles but he devised new labor practices

that would satisfy the workers. In this way he was far ahead of his times. Jamshedji had three

key ideas in mind. He wanted to set up an iron and steel company, world class learning

institution and a hydroelectric plant. Unfortunately during his lifetime none bore fruit but he

had planted the seed, which later took roots and spread its branches under the care of his

successors. The only achievement that he lived to see was The Taj Mahal Hotel. It was

completed in December 1903 for a princely amount of Rs.4,21,00,000/-

Tata Group is a private conglomerate with headquarters at Mumbai. The present Chairman is

Ratan Tata who took over from J.R.D. Tata in 1991. A member of the Tata family is always

the Chairman of the group. Its operations cover many fields related to industry and allied

activities concerned with know-how and its application engineering, information

technology, communications, materials, automotive, chemicals energy, telecommunications,

software, hotels, steel and consumer goods.

The statistics and figures of Tata Group speak for themselves. Its revenue touches $21.9

billion in 2005-06. This is equal to 2.8% of Indias GDP. There are 96 companies operating


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in 7 business sectors. Only 28 of 96 in Tata Group are publicly listed. Tata operates in more

than 40 countries across 6 continents. TISCO now called Tata steel set up in 1907. Indias

first iron and steel plant in Jamshedpur, which is often called Tatanagar. In 1910 was set up

Tata Hydro-Electric Power Supply Company. In 1917 the Tata group made its debut in the

field of consumer goods industry with the setting up of Tata Oil Mill dealing in soaps,

detergents and cooking oil. 1932 saw the establishment of Tata airlines. Tata Chemicals made

its appearance in 1939. Telco now known as Tata Motors started to manufacture locomotive

and engineering products from 1945.

January 2007 is a watershed in the history of Tata Group. Tata steel made a successful bid for

UK based Corus Group, which was one of the worlds leading steel and aluminum producers.

After an unprecedented nine rounds of bidding Tata finally clinched the deal. Tata offered to

buy 100% stake in Corus at 608p per share (all cash) totaling to a value of $12.04 billion. It

has turned out to be the biggest acquisition by any Indian company. Tata Power is one of the

largest private sector companies in India and supplies power to Mumbai and parts of New

Delhi. Then there are Tata Chemicals and Tata Pigments. In the service sector there are Tata

companies dealing with hotels, general insurance and life insurance. Tata offers management,

economic and financial consultancy services. Tata is one of the best names in the world of

investments and shares. In the area of education Tatas publishing house of Tata McGraw

Hill is a renowned name.

The name of Tata is linked to consumer durables like tea, watches (Titan) Tata Trent

(Westside) to Tata Sky and even gold and diamonds like Tanishq brand of jewellery. In

information systems and communications the Tata name comes with Computational &

Research Laboratories, INCAT, Nelco, Nelito Systems, TCS and Tata Elxsi. Tata acquired

VSNL; the Indian telecom giant from Bermuda based Canadian company named Teleglobe in

2005.

The aim of Tata Group is to improve the quality of life in the society by virtue of integrity,

understanding, excellence, unity and responsibility. The entire family known as the TataGroup shares these values. Tatas contribution to Indias education, science and technology

has been widely documented and respected. The blue colored log of Tata speaks for fluidity

as well as fountain of knowledge. It can also be seen as a tree under which all are welcome to

take refuge.


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TATA MOTORS

MISSION

Tata Motors is committed to maximizing customer satisfaction and strives to

achieve the goal of excellence through ongoing development, manufacture and sale of

reliable, safe, cost effective, quality, product and services.

Tata Motors is Indias largest automobile company. Established in 1945, it is also

among the worlds top five manufacturers of medium and heavy trucks and the world's

second largest medium and heavy bus manufacturer. It entered the passenger vehicles

segment in 1991 and now ranks second in India's in this market.

The company, formerly known as Tata Engineering and Locomotive Company, began

manufacturing commercial vehicles in 1954 with a 15 year collaboration agreement with

Daimler Benz of Germany. It has, since, developed Tata Ace, India's first indigenous light

commercial vehicle, Tata Safari, India's first sports utility vehicle, Tata Indica, India's first

indigenously manufactured passenger car, and the Nano, the world's cheapest car.

Tata Motors has over 1,400 engineers and scientists in six R&D centres in India, South

Korea, Spain and the UK. Its vehicles are exported to Europe, Africa, the Middle East, South

and Southeast Asia and South America.


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Areas of business:

Tata Motors makes passenger cars, multi-utility vehicles and light, medium and heavy

commercial vehicles.

Passenger cars: The Company launched the compact Tata Indica in 1998, the sedan

Indigo in 2002 and the station wagon Indigo Marina in 2004. Tata Motors also

distributes Fiats cars in India.

Utility vehicles: The Tata Sumo was launched in 1994 and the Tata Safari in 1998.

Commercial vehicles: The commercial vehicle range extends from the light two-tone

truck to heavy dumpers and multi-axle vehicles in the above 40-tonne segment.

Passenger buses: The Company also manufactures and sells passenger buses, 12-

seaters to 60-seaters, in the light, medium and heavy segments.

Joint ventures, subsidiaries, associates:

Tata Motors has joint ventures with Marco polo, the Brazil-based maker of bus and coach

bodies, and with Fiat Auto (to build a commercial vehicle at Fiat's facilities in Crdoba,

Argentina).

Other associates include:

Tata Daewoo Commercial Vehicle Company, a 100% subsidiary of Tata Motors in

the business of heavy commercial vehicles.

Tata Motors European Technical Centre is a UK-based, 100% subsidiary engaged in

design engineering and development of products.

Telco Construction Equipment Company makes construction equipment and allied

services. Tata Motors has a 60% holding; the rest is held by Hitachi Construction

Machinery Company, Japan.


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Tata Technologies provides specialized engineering and design services, product

lifecycle management and product-centric information technology services.

Tata Motors (Thailand) is a joint venture between Tata Motors (70%) and Thonburi

Automotive Assembly Plant Co (30%) to manufacture and market the companys

pickup vehicles in Thailand.

Tata Cummins manufactures high horsepower engines used in the companys range of

commercial vehicles.

HV Transmissions and HV Axles are 100% subsidiaries that make gearboxes and

axles for heavy and medium commercial vehicles.

TAL Manufacturing Solutions is a 100% subsidiary that provides factory automation

solutions and designs and manufactures a wide range of machine tools.

Hispano Carrocera is a Spanish bus manufacturing company in which Tata Motors

has a 21% stake.

Concorde Motors is a 100% subsidiary retailing Tata Motors range of passenger

vehicles.

Tata Motors Finance is a 100% subsidiary in the business of financing customers and

channel partners of Tata Motors.

Location:

Tata Motors' plants are located at Jamshedpur (eastern India), Pune (west), and Lucknow and

Pantnagar (north). Tata Motors and Fiat have set up a common manufacturing facility at

Ranjangaon, near Pune. The company is establishing a new plant at Singur (eastern India).


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AREA OFFICE OF TATA MOTORS LTD., GUWAHATI

Tata Motors Ltd., the wheel of Indias growth has its Area Office located in the Ulubari,

Guwahati. The Area Office regulates the business satire of entire North East under the

Regional Office at Kolkata. The Office has four divisions Sales, Service, Spares andAdministration.

ORAGANIZATIONAL HIERARCHY OF THE AREA OFFICE

SALES SERVICE SPARES ADMINISTRATION

AREA MANAGER AREA SERVICE MANAGER MANAGER OFFICERS

TOTAL SALES MANAGER

DEALERS

MANAGER

ASSISTANT MANAGER

AREA OFFICE


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DIFFERENT VARIETIES OF TATA TRUCKS

MEDIUM AND HEAVY COMMERCIAL VEHICLES

Tata Novus

LPT 1615 TC Turbo Heavy -duty Truck

SE 1613 TC Turbo Truck

LPT 1613 TC Turbo Truck

SE 1613 Turbo Truck

LPT 1613 Turbo Truck

LPO 1613 TC Turbo Car Carrier

LPT 2515 TC Turbo Truck

LPT 2516 TC Intercooler Turbo Truck

LPT 2516 TC Turbo Heavy-duty TruckSK 1615 TC Turbo Heavy-duty Tipper

LPK 1615 TC Turbo Heavy-duty Tipper

LPK 1615 TC Turbo Two-way Tipper

LPK 2516 TC Turbo Heavy-duty Tipper

LPS 3015 TC Turbo Tractor

LPS 3516 TC Turbo Tractor

LPS 3516 TC Turbo LPG tanker


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1.3 PROBLEM OF THE ORGANIZATION

The cement industry is experiencing a boom on account of the overall growth of the Indian

economy. The demand for cement, being a derived demand, depends primarily on the

industrial activity, real estate business, construction activity, and investment in theinfrastructure sector. North East is experiencing growth on all these fronts and hence the

cement market is flourishing like never before.The organization wants to find out whether

there would be an increase in the sale of the trucks with the increase in the cement production

in North East.

1.4 COMPETITION INFORMATION

The Automobile sector of India is one of the fastest growing sectors of India contributing

about 5% to GDP. In spite of the World wide global recession it has made great recovery and

is one of the growing sectors. It has many proven players like Tata Motors, Maruti-Suzuki,

Hyundai Motors, Mahindra, and General Motors etc. in the passenger vehicle segment and

Tata motors, Ashok Leyland, Mahindra, and Eicher Motors etc. in the commercial vehicle

segment.

The CV industry in India is split between the Lower Commercial Vehicle (LCV) and

Medium/High Commercial Vehicle (M/HCV) segments, with the classification being based

on gross vehicle weight (GVW). According to Industry norms, vehicles with GVW less than7.5 tonnes are classified as LCVs while the ones heavier than these are termed M/HCVs. The

Indian four-wheeler industry is duopolistic in nature with Mahindra and Mahindra (M&M)

and Tata Motors holding a major share in LCV segment (90.8%) and Ashok Leyland (ALL)

and Tata Motors holding a major share in M&HCV segment (88.6%). Tata Motors is the

market leader in commercial vehicle segment with a share of 65.3 % as on February 2009 and

is third in terms of market share in Passenger vehicle segment after Maruti-Suzuki and

Hyundai Motors.


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1.5 SWOT ANALYSIS OF THE ORGANIZATION

STRENGHT:

TATA MOTORS is present in market

since long time. According to survey,

TATA MOTORS is brand name for

Quality and trust in North East.

Sound dealers and service network.

Wide range of product.

WEAKNESS:

Delay in delivery of Trucks.

OPPORTUNITY:

Upcoming cement plant will prove to be

beneficial for automotive industry as the

demand for M&HCV will grow in near

future.

As north east has wide availability of raw

material so transportation requirement for

raw material movement will increase.

THREATS:

The obvious threat is from competition.

Leyland is improving its network in North

East.

More number of railway tracks is coming in

North East.


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CHAPTER-II

RESEARCH METHODOLOGY


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2.1 OBJECTIVE OF THE RESEARCH

The basic objective of the research was to analyze the impacts of upcoming cement

manufacturing units in North East on the sale of Tata Motors Medium and Heavy

Commercial Vehicle (M&HCV) along with analyzing the perception of the customers buying

Medium and Heavy Commercial Vehicle (M&HCV) in North East and also to suggest the

effective measures to reduce the drawbacks of the company.

2.2 SCOPE OF THE OBECTIVE

This study will provide a base for Tata Motors to formulate sale strategies for future and the

type of vehicles to be offered in order to take advantages of the opportunity which is present

in North East in cement transportation.

This research will also serve as a reference material for other researchers who are going to

conduct studies in fields related to the same as done by researcher.

2.3 METHODOLOGY

Research type

Initially a descriptive research was undertaken to gain insights into the general nature of the

research problems and objectives, the possible decisions, alternatives and the relevant

variables that need to be considered while designing the questionnaires. Along the lines of

this descriptive research the questionnaire was designed. With the help of the questionnaire

the survey was conducted within Guwahati.

Data sources

Primary Data: - Primary data was obtained through the questionnaire designed for the

different Transporter and cement plant in Guwahati.


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Secondary Data: - It is obtained from the following:

I. Company website (www.tatamotors.com)

II. Company brochures and leaflets.

Research approach-

Survey Method was used to collect primary data. The primary data from the samples under

study were collected by using a questionnaire.

Research instrument

The main research instruments used for this study was-

Personally administered questionnaire

The questionnaire was prepared with prior consultation of the academic as well as

organizational guide. The questionnaire includes both closed ended and open ended

questions. The questionnaire aimed at finding out the truck market of Guwahati by filling up

the questionnaire by the Transporter and Cement plant in especially in Guwahati.

Questionnaire approach

The questionnaire that was prepared after incorporating the required changes of the pilot

survey consist of 17 questions. Of these 17 questions, 6 questions are open ended questions

and the rest are close ended questions. The natures of the questions are discussed as follows:

1. The first question is a common question used to the name of the Transporter.

2. Thereafter there is one open ended question used to know how many trucks they are

using.

3. Again there are two close ended questions to determine the brand of trucks they are

using; applications in which they are using their trucks are operating.


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4. In addition there is one open ended question to determine where their trucks are

operating.

5. The questionnaire continues with one close ended question to know the payload of the

truck.

6. Then one more open ended question which give us number of trips per truck per

month.

7. There are two other close ended questions to determine the mileage and the life of the

tyre.

8. Other two open ended questions is to know the freight rate and additional charges.

9. The last six close ended questions is to determine the brand and the quantity of the

cement which the transporter transport, satisfied with the performance, which truck

they would like to buy, how much and when.

Sampling plan

Universe all the Transporter and Cement Manufacturer in North East region

Sampling unit Surveys questionnaires had been sent to the following:

1. Transporters in Guwahati region.

Sample size- 15 units Transporter and 5 Cement Industries.

Sampling procedure - Judgment and Convenience Sampling as met personally with the

persons who are working in the cement companies.

Contact method- Personal and Through Telephone Calls because the transporters havent

E-mail addresses so these are the only two methods to contact.

Method of collecting the data Data was collected by personal interactions with the

Transporters and Cement Manufacturer in North East region.


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Data processing

Measurement unit- data will be analyzed on the basis of feedback from all the units in the

universe. The collected data was depicted in the form of graphical charts in MS Excel.

Inferences were drawn and the suggestions were given.

2.4 LIMITATION

No method is 100 % perfect, every method have its own advantages and limitation. The limitation

felt by me during the work are as follows:

The response of the customers can be biased.

There were financial constraints.

The geographical area of research was restricted to the city of Guwahati.

Busyness of the respondent.

Few of the cement manufacturers denied giving data regarding production capacity

and future expansion which again became a constraint of the study.


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CHAPTER-III

CONCEPTUAL DISCUSSIONS


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3.1 OVERVIEW OF CEMENT COMPANIES IN NORTH EAST

The cement industry is one of the main beneficiaries of the infrastructure boom. The cement

industry is experiencing a boom on account of the overall growth of the Indian economy. The

demand for cement, being a derived demand, depends primarily on the industrial activity, realestate business, construction activity, and investment in the infrastructure sector. India is

experiencing growth on all these fronts and hence the cement market is flourishing like never

before. Indian cement industry is globally competitive because the industry has witnessed

healthy trends such as cost control and continuous technology up gradation.

With robust demand and adequate supply, the industry has bright future. The company

continues to emphasize on cost cutting through enhanced productivity, reduction in energy

costs and logistics expenses.The cement sectoris expected to witness growth in line with theeconomic growth because of the strong co-relation with GDP. Future drivers of cement

demand growth in Indiawould be the road and housing projects.

3.1.1 NATIONAL SCENARIO:

Demand: The Indian cement industry is the second largest producer of quality cement, which

meets global standards. The cement industry comprises 130 large cement plants and more

than 300 mini cement plants. Growth in cement consumption in India over the last decade

has exhibited a strong correlation to the GDP. The cement demand for the next 6 years is

given as:

TABLE: 3.1 NATIONAL CEMENT DEMAND FORECAST (MT)

Year National Demand

2006-07 155

2007-08 170

2008-09 187

2009-10 206

2010-11 227

2011-12 252


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Fig: 3.1

3.1.2 STATESCENARIO:

ASSAM: The growth in cement consumption can be attributed to the improved

security in the region. Both the Central and State governments are focusing on the

improvement of the basic infrastructure in the state. Investment is being done to improve

the road network, especially by NHAI, in the entire North East. Large projects are being

undertaken by government agencies like NHPC, NEEPCO, NTPC etc., which are

contributing to the overall growth in cement consumption.

Even the private sector investment, especially in the field of real estate

development is on a high due to encouragement from the state government, which is

very much evident from the construction projects including residential, malls,

hotels etc.


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TABLE: 3.2 FUTURE CEMENT CONSUMPTION IN ASSAM (MT)

Year Demand in MT

FY08 1.76

FY09 1.92

FY10 2.09

FY11 2.28

FY12 2.49

Fig: 3.2

3.1.3 NORTH EAST SCENARIO:

North East states has seen a Growth in cement consumption as a result of number of

Hydel Power projects undertaken by NHPC, NEEPCO etc. and National Highway

construction & up gradation projects undertaken by NHAI. Apart from this there has

been an increase in the cement consumption on account of individual housing

construction.


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TABLE: 3.3 FUTURE DEMAND SUPPLY GAP IN NORTH EAST (MT)

Year Demand Supply Surplus(Deficit)

FY08 3.22 2.1 1.12

FY09 3.55 2.86 0.69

FY10 3.92 3.63 0.29

FY11 4.33 4.79 (0.46)

FY12 4.79 5.44 (0.65)

Fig: 3.3

In brief we have covered Cement market including market size, composition, and Market

growth, latest Trends & Opportunities, different policies adopted by the Government for the

Indian cement industry, cement production and capacity utilization as well as the current

scenario of demand and supply.


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3.2 MANUFACTURING PROCESS OF CEMENT:

The production process for cement consists of drying, grinding and mixing limestone and

silica into a powder known as a raw meal. The raw meal is then heated and burnt in a pre-

heater and kiln and then cooled in an air cooling system to form a semi-finished product,

known as a clinker. Clinker (95%) is cooled by air and subsequently ground with gypsum

(5%) to form OPC. Other forms of cement require increased blending with other raw

materials. Blending of clinker with other materials helps impart key characteristics to cement,

which eventually govern its end use. Cement is typically manufactured by one of the three

processes, wet, semi-dry, or dry. The basic differences between these processes are the form

in which the raw meal is fed into the kiln, and the amount of energy consumed in each of the

processes. In the dry process, the raw meal is fed into the kiln in the form of a dry powder

thereby resulting in energy savings, in the wet process it is fed into the kiln in the form of

slurry. The semi-dry process consumes more energy than the dry process, but lesser than the

wet process.


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3.2.1 CONSUMPTION NORMS:

Consumption Norms, based on the raw mix design are given below

TABLE: 3.4 CONSUMPTIONNORMS

SL NO. PARAMETER VALUE

1. Clinkerisation Factor 1.545

2. Raw Mix (%)

Limestone 99.44

Clay/Shale 0.4

Iron Ore 0.16

3. Fuel Consumption (Kcal/kg Clinker) 850

4. Calorific Value of Coal (Kcal/kg) 5,800

5. Fuel Consumption (%) 14.66

6. Gypsum addition in OPC / PPC (existing cement grinding) 2% /1.5%


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Fig: 3.4

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

a wet process. The basic steps involved in such processes are set out below:


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DRY PROCESS:

In dry process production, limestone is crushed to a uniform and usable size, blended with

certain additives (such as iron ore and bauxite) and discharged on to a vertical roller mill

where the raw materials are ground to fine powder. An electrostatic precipitator deducts the

raw mill gases and collects the raw meal for a series of further stages of blending. The

homogenized raw meal thus extracted is pumped to the top of a preheater by air lift pumps. In

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

process of calcinations in a precalcinator (in which the carbonates present are reduced fed to

the kiln). The remaining calcinations and Clinkerisation reactions are completed in the kiln

where the temperature is raised to 1,450-1,500C. The clinker formed is cooled and conveyed

to the clinker silo from where it is extracted and transported to the cement mills for producing

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

gypsum and fly ash are used.

WET PROCESS:

The wet process differs mainly in the preparation of raw meal where water is added to raw

materials to produce slurry. The chemical composition is corrected and the slurry is then

pumped to the kiln where evaporation of moisture, preheating, calcinations and sintering

reaction takes place. The clinker is cooled and transported, as in the case of other plants, with

suitable conveyors to cement mills for grinding. The wet process is more energy intensive,

and thus becomes expensive when power and energy prices are high.


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CEMENT SUPPLY CHAIN:

RAW MATERIAL

CLINKER

CEMENT IN BAGS

CEMENT IN BULK

CONCRETE

Fig: 3.5

FUEL

SUPPLIERS

QUARRIES

OTHER RAW

MATERIAL

SUPPLIERS

CLINKER

PRODUCTION

CLINKER

STORAG

GRINDING

PACKAGING

CEMENT BAGS

STORAGE

CEMENT BULK

STORAGE

CONCRETE

COMPANIES

WHOLESELLERS

RETAILERS

GOVERNMENT &

LAREGE

CONSTRUCTION

COMPANIES

DRY

BULDERS

SMALL &

INDIVIDUAL

CONTRACTOR

PULLPUSH

INBOUND LOGISTICOUTBOUND LOGISTIC


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INBOUND OPERATION:

LIMESTONE:

Raw materials from quarries such as limestone, coal are required drying cement production.

A cement manufacturing unit tries to be nearer to limestone quarry in order to save on

transportation cost. As limestone either in form of huge bolder or crushed powder is a source

of huge transportation cost as to produce one ton of cement 1.6 ton of limestone is required.

Cement units located near limestone captive mine saves a huge amount of money in term as

their logistical and procuring cost is much lower in compare to other who procures it from

distant source.

Coal:

Theconsumptionofcoalinatypicallydryprocesssystemrangesfrom 20-25%of

clinkerproduction.Thismeansforpertonclinkerproduced0.20-0.25tonofcoal

is consumed. This contributes 35-40% of the production cost. The cement

industry consumesabout10mn tonsof coal annually. Since coalfields like BCCL

supplyapoorqualityofcoal, NCL andCCL the industryhas toblendhigh-grade

coalwithit. TheIndiancoalhasa lowcalorificvalue(3,500-4,000kcal/kg)with

ashcontentas highas25-30%comparedto importedcoalofhighcalorificvalue

(7,000-8,000 kcal/kg)withlowashcontent6-7%.Ligniteisalsousedas afuelby

blendingitwith coal.Howeverthisprocessis notverycommon. Cement plant in

Meghalaya uses locally available coal which in turn is brought from local coal field

with trucks or tipper. This in future will become an opportunity for M&HCV

manufacturer as new cement plant are coming in this region.

GYPSUM:

Gypsum is ground with clinker to produce cement. Usually, about 0.07 tonne of gypsum is

used in production of 1 tonne of cement thus the total requirement for production of 5.3


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million tonnes is about 0.371 million tonne. The Companies at present are sourcing the

gypsum requirements from suppliers in Gujarat and the in Rajasthan. The landed cost of

Gypsum during the nine months ended December 31, 2006 is about Rs. 864 per tonne. So

here road transportation is the only viable solution as here rail transportation is not feasible

due to less percentage of gypsum used in production.

FLYASH:

Flyash is a key requirement for the production of PPC. About 25% of flyash is used to

manufacture PPC along with about 0.07 million tonne of gypsum and balance clinker. The

availability of flyash at reasonable landed cost gives a cement producer the advantage of

producing more of PPC and thereby increasing overall contribution. As fly ash directly

replaces the clinker in cement manufacturing process, it increases the overall production and

contribution and improves the margins of the Company. While the power plants charge only

Rs.60 to Rs.150 per tonne as administrative charges to allow the Company to lift the flyash,

the main cost is incurred in transportation. Presently, the landed cost of flyash works out to be

around Rs. 662 per tonne. The Company does not use the flyash generated by its power plant,

as the flyash from the captive power plant has high carbon content and is efficiently recycled

by usage in the kiln. In flyash procurement transportation cost is high so here it again turns to

be an opportunity for M&HCV manufacturer.

OUTBOUND OPERATION:

Outbound operations consist of dispatching goods i.e. dispatching packed, bulk cement and

clinker.

PACKED CEMENT:

Finished cement is dispatched in paper packet to customer in full body trucks. As in

northeastern region the weather condition are almost unpredictable so other form such as

tractor trailer are not viable.


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BULK CEMENT:

Cement in bulk form is send to government project and other big construction company via

bulk movement. In northeast region such practice is not present but in future cement

companies are planning to dispatch cement in bulk form to big project. So the demand of big

containerized truck will be present in future.

Cement movement to ready to mix vehicle is also done in bulk form. RMCs which are at

present not available in northeast region will soon be appearing in the scenario as they save

both on the front of manufacturer and individual consumer.

CLINKER:

Clinker movement to small unit in Siliguri and other region will continue to grow as more

and more no of grinding unit will come up in near future. This growth in mini cement plant

will be an opportunity for M&HCV manufacture as more transportation facility will be

required in future.


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3.3 BRIEF ABOUT THE CEMENT COMPANIES

3.3.1 MEGHALAYA CEMENT LTD.:

Meghalaya Cement Ltd. (MCL), a company promoted by leading industrialists and

Businessmen, intend to increase the capacity of its existing plant at Thangskai in DistrictJaintia Hills, Meghalaya, India from 900 TPD clinker to 2600 TPD clinker along with an 18

MW captive thermal power plant and captive limestone mines including 33.45ha ML.

The plant is based on nearby limestone deposits in the villages of Mooing, Kheliegari and

New Kheliegari and proposed in South Kheliegari in Jaintia hills district of Meghalaya.

TABLE: 3.5 SOURCES OF RAW MATERIAL MCL

MATERIAL SOURCE CATEGORY SOURCE

LOCALITY

SOURCE OF PICKNG

RAIL TRUCK ROAD

TIPPER

COAL PURCHASE LOCAL Y

CLAY CAPTIVE MINE LOCAL Y

GYPSUM PURCHASE BHUTHAN Y

IRON ORE PURCHASE GUWAHATI Y

FLYASH PURCHASE KAHALGAON

FARAKA NTPC

Y Y

LIMESTONE MINES LOCAL Y


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STORAGE:

TABLE: 3.6 NORMS FOR STORAGE CAPACITIES

Sl.No. Section Storage Capacity in Kiln

Days

1 LimestoneStorage 7

2 Clay/shale 30

3 Iron Ore 30

4 Raw Meal Storage (Active) 1

5 Clinker 13

6 Coal 9

PLANT CAPACITY (AFTER EXPANSION)

CLINKERISATION:2,600 TPD

CEMENT GRINDING: 1,800 TPD


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3.3.2 JUD CEMENT PRIVATE LTD.:

JUD Cements Private Limited (JCPL), Meghalaya, a part of U.D. Group has proposes to set

up a 900 TPD Cement Manufacturing Unit along with 10MW Captive Power Plant(CPP)

near Wahiajer village, Jaintia hills district of Meghalaya. The project proponent has started

the construction work for 900 TPD Cement plant. As per the notification they also have to

take Environmental Clearance for the Cement Plant and 10 MW CPP from the State level

Environmental.

TABLE: 3.7 SOURCES OF RAW MATERIAL FOR JUD

MATERIAL SOURCE

CATEGORY

SOURCE

LOCALITY

SOURCE OF PICKNG

RAIL TRUCK ROAD

TIPPER

LIMESTONE CAPTIVE MINE LOCAL Y

SHALE/CLAY FROM CAPTIVE

MINE

LOCAL Y

GYPSUM PURCHASE BHUTHAN,

KOTHAKPA

Y

MILL SCALE PURCHASE GUWAHATI Y

FLYASH FROM CAPTIVE

MINE

CPP Y Y

COAL PURCHASE WAPUNG Y

JUD started to produce clinker but not the cement. Cement is proposed to start by August,

2009.

Plantcapacity:

Clinkerisation:

Daily : 900 TPD

Annual : 900 x 330

: 2,97,000 TPD


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3.3.3 CEMENT MANUFACTURING COMPANY LIMITED:

Cement Manufacturing Company Limited with installed capacity of 3000 TPD clinker

production, single stream with 5 stage preheater and bottom discharge Precalciner, highest

capacity plant located in North East in Lumshnong Village Dist. Jaintia Hills Meghalaya on

National Highway no. 44 between Shillong and Silchar.

TABLE: 3.8 SOURCES OF RAW MATERIAL FOR CMCL


LOCALITY

SOURCE OF PICKNG

RAIL TRUCK ROAD

TIPPER


SHALE/CLAY FROM CAPTIVE MINE LOCAL Y

GYPSUM PURCHASE BHUTAN Y

IRON ORE PURCHASE GUWAHATI,

JHARKHAND

Y

FLYASH PURCHASE WEST BENGAL,

BIHAR

Y Y

COAL PURCHASE MEGHALAYA Y

The plant has following UNIQUE FEATURES:

1. Use of 100 % Meghalaya coal having 4 to 6 % of Sulphur content and without bypass

system for volatiles.

2. Bottom Discharge Precalciner with Orifice arrangement to Balance air quantity in riser

duct and Tertiary Air.

3. Commissioned within very short time without facing any major teething problem.


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3.3.4 ADHUNIK CEMENT LTD.:

Adhunik Cement Ltd., part of the Kolkata based Adhunik group, along with the MSP group,

has interests in steel and mining, and is setting up an integrated cement plant with a capacity

of 2700 TPD along with a 25MW captive power plant in the northeastern state of

Meghalaya, to be built and operated by ACL. The construction of the plant started in June

2007 and the project is on target to commence cement production from October 2009.

Sufficient availability of coal and flyash in the region remains a concern but the company has

entered into Memorandums of Understanding with fly ash, coal and power suppliers to ensure

raw material availability. This should reduce the time taken for stabilization of the plant and

for it to be run at optimum utilization levels.

TABLE: 3.9 SOURCES OF RAW MATERIAL FOR ADHUNIK


LOCALITY

SOURCE OF PICKNG

RAIL TRUCK ROAD

TIPPER


SHALE/CLAY FROM CAPTIVE MINE LOCAL Y

GYPSUM PURCHASE BHUTAN Y

IRON ORE PURCHASE JHARKHAND Y

FLYASH PURCHASE KAHALGAON,

FARAKA

Y Y


Adhunik Cement Ltd. will become one of the largest local cement producers in the

fragmented northeast market once the new plant is operative and will be able to benefit from

economies of scale and capital and tax and transport subsidies available for five-to-ten years,

but it will still have to contend with expected oversupply that will likely be driven by new

capacities coming on stream in the region.


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3.3.5 HILLS CEMENT LTD.:

The Hill Cement is dedicated towards providing a service that meets the very highest

standards. The plant is based on nearby limestone deposits in the villages of Mooing and

Kheliegari in Jaintia hills district of Meghalaya

. TABLE: 3.10 SOURCES OF RAW MATERIAL FOR HILLS CEMENT

MATERIAL SOURCECATEGORY

SOURCE LOCALITY

SOURCE OF PICKNG

RAIL TRUCK ROAD

TIPPER

LIMESTONE CAPTIVE MINE MEGHALAYA,NORTH KACHAR

Y

CLAY FROM CAPTIVE MINE LOCAL Y

GYPSUM PURCHASE BHUTAN,RAJASTHAN & TAMIL

Y Y

IRON ORE PURCHASE JHARKHAND Y

FLYASH PURCHASE KAHALGAON,FARAKA, & SEURI

Y Y


Reason for selecting the proposed Site:

The major criteria for locating the proposed cement plant at this site are as follows:

The plant location is close to limestone deposit.

The site is almost flat with slightly undulating portion.

Perennial source of water exists in the vicinity of the proposed site.

Power supply is available.

The site is in proximity to railhead, which will reduce transportation costs.

The site is in proximity to an established township, which would offer reasonable

amenities to the plant employees.

The location will enable the management to deliver cement at the most economical

rate, commensurate with the capital investment of the project.


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3.4 Meghalaya a new destination for cement manufacturer a few facts

why cement manufacturing unit are coming in Meghalaya:

Meghalaya has extensive deposits of minerals like coal, limestone, granite, clay,

etc.

Coal, which is an important input, is available in plenty in all districts and

particularly in southern slopes of the state.

Clay of various types such as Kaolin (China clay), white clay and fire clay are

found in various parts of the states. There are a few hundred million tonnes of clay

reserved in the state.

Economically viable minerals like gypsum can be located in various parts of the

state.

Limestone is another mineral that exists in an extensive belt (approx 200 km long)

along the southern border of Meghalaya. Total inferred reserve limestone within

the State is about 5,000 million tonnes.

Availability of skilled but cheap manpower.

Sales Tax Exemption.

Stamp Duty Exemption.

Subsidy on Power on the fulfillment of certain prerequisites.

Special central government incentives for investment in Meghalaya.

Favorable regulatory environment.

A ready market in the Northeast and the neighboring countries viz. Bangladesh.

Communication is easy - English being the widely spoken language.


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CHAPTER-IV

DATA ANALYSIS


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A study of Transporter in segment of

Tata Motors- An Analysis

TABLE-4.1 FLEET DATA

NAME OF TRANSPORT COMPANY NUMBER OF TRUCKS

MATA TRANSPORT PVT. LTD. I5 TRUCKS

CARRIER INDIA PVT. LTD. 7 TRUCKS

DELHI ASSAM ROADWAYS CORP.LTD 20 TRUCKS

SINGH & SAKIA TRANSPORTER 57 TRUCKS

B.M.E. TRANSPORT 7 TRUCKS

K.J. TRANSPORT 18 TRUCKS

M.G.C. TRANSPORT RENTED TRUCKS

B.S.R. TRANSPORT 28 TRUCKS

SOUTH ASSAM LOGSTIC 45 TRUCKS

R.K TRANSPORT 10 TRUCKS

SUPREME TRANSPORT 1 TRUCKS

HILLS TRANSPORT 2 TRUCKS

A.B. ENTERPRISE 5 TRUCKS

N.K. DAS TRANSPORT 7 TRUCKS

SUNSHINE TRANSPORT 100 TRUCKS


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FIGURE-4.1 FLEET DATA

15

7

20

57

7

18

0

28

45

10

1

2

5

7

100

0 20 40 60 80 100 120

MATA TRANSPORT PVT. LTD.

CARRIER INDIA PVT. LTD.

DELHI ASSAM ROADWAYS CORP.LTD

SINGH & SAKIA TRANSPORTER

B.M.E. TRANSPORT

K.J. TRANSPORT

M.G.C. TRANSPORT

B.S.R. TRANSPORT

SOUTH ASSAM LOGSTIC

R.K TRANSPORT

SUPREME TRANSPORT

HILLS TRANSPORT

A.B. ENTERPRISE

N.K. DAS TRANSPORT

SUNSHINE TRANSPORT

NO. OF TRUCKS

INFERENCE: In the above graph, Sunshine Transport has the highest number of Trucks i.e.,

100 Trucks and M.G.C. Transport is the only Transport Company who have no Trucks. It

only hires the Trucks to Transport the goods.


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TABLE-4.2 BRAND COMPARISION

BRAND FREQUENCY PERCENTAGE

TATA 13 86.67 %

LEYLAND 2 13.33 %

FIGURE -4.2 BRAND COMPARISION

INFERENCE: To reach the conclusion that which is the favorite brand of transporter they

were asked to rate M&HCV on the basis of:

Service offered by M&HCV manufacturer.

Availability of spare parts.

Availability of trained staff.

Mileage. Annual maintenance cost.

Products offered by M&HCV manufacturer.


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TABLE-4.3 PAYLOAD TONNE

PRIMARY SECONDARY

15-20 TONNE 13.33 60

20-25 TONNE 86.67 40

FIGURE -4.3 PAYLOAD TONNE

INFERENCE: When the model of TATA and ASHOK LEYLAND were compared

on the load carrying capacity the response were found to be 80% in favour of TATA

model as according to customer TATA trucks are good in payload.


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TABLE-4.4 MILEAGE

MILEAGE

HILLS 1.75

PLAIN 3.5

EMPTY 4.75

FIGURE -4.4 MILLEAGE

INFERENCE: The above figure shows that the mileage of the truck is 1.75 km/lit on

hills, 3.5 km/lit on plain and 4.75 km/lit when the truck is empty.


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TABLE-4.5 LIFE OF TYRE

REAR FRONT

LIFE OF TYRE 3.5 MONTHS 6.5 MONTHS

FIGURE -4.5 LIFE OF TYRE

INFERENCE: After collecting the sample of 15 Transporter, I analyzed that the life

of the front tyre is about 6.5 months and the life of rear tyre is about 3.5 months.


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TABLE-4.6 FREIGHT RATE

FARE/FREIGHT RATE

PLAIN Rs.1.25 per tonne/km

HILLS Rs.2.50 per tonne/km

FIGURE -4.6 FREIGHT RATE

INFERENCE: The freight rate charged on per tonne basis by the transport company. Andthe freight rate in plain is Rs. 1.25 per tonne / km and in hill is Rs. 2.5 per tonne / km, just

double the rate in plain.


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TABLE-4.7 ADDITIONAL REQUIREMENTS OF TRUCKS BY TRANSPORTERS

TRANSPORT NAME ADDITIONAL

REQUIREMENT OF

TRUCKS

PURCHASE WITHIN

IN MONTHS

MATA TRANSPORT PVT. LTD. 2 1B.S.R. TRANSPORT 10 6R.K. TRANSPORT 5 6SUPREME TRANSPORT 5 6HILLS TRANSPORT 5 6

FIGURE -4.7 ADDITIONAL REQUIREMENTS OF TRUCKS BY TRANSPORTERS

INFERENCE: According to the sample of 15 Transporter, I analyzed that there are 5Transport who have additional requirement of truck and it has been seen that their

requirement of additional truck are within 6 months except 1 Transport i.e., MATA

Transport Private Limited and its requirement is within 1 month.


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TABLE-4.8 FORECASTING OF CEMENT PRODUCTION

CEMENT

COMPANIES

CURRENT

PRODUCTION

(TPD)

EXPANSION

PRODUCTION

(TPD)

TOTAL

PRODUCTION

(TPD)

MCL 900 900 1,800

CMCL 3,000 1,500 4,500

ADHUNIK - 2,700 2,700

HILL - 1,800 1,800

TOTAL 3,900 6,900 10,800

FIGURE -4.8 FORECASTING OF CEMENT PRODUCTION

INTERFRENCE: In the above graph, it shows the current production, expansion production

and total production of cement companies in the North East.


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TABLE-4.9 PER DAY REQUIREMENTS OF TRUCKS BY CEMENT UNIT

CEMENT

COMPANIES

EXPANSION

PRODUCTION

(TPD)

TOTAL

PRODUCTION

(TPD)

NO.OF

TRUCKS USED

PER DAY

MCL 900 1,800 82

CMCL 1,500 4,500 204

ADHUNIK 2,700 2,700 123

HILL 1,800 1,800 82

TOTAL 6,900 10,800 491

FIGURE -4.9 PER DAY REQUIREMENTS OF TRUCKS BY CEMENT UNIT

INTERFRENCE: The above figure shows the expansion production and total production

and through that we can find out the number of trucks used per day (assume that payload

tonne of per truck is 22 tonne).


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CHAPTER-V

FINDINGS


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5.1 FACTS AND FINDING

TABLE: 5.1 CEMENT PRODUCTION IN NORTH EAST

(IN MATRIC TONNE)

COMPANY CURRENT

PRODUCTION P.A.

(IN MT)

EXPANSION

PLAN P.A.

(IN MT)

TOTAL

PRODUCTION

MCL 3,24,000 3,24,000 6,48,000

CMCL 10,80,000 5,40,000 16,20,000

ADHUNIK - 9,72,000 9,72,000

HILL - 6,48,000 6,48,000

TOTAL 14,04,000 24,84,000 38,88,000

Here the current cement production is 14,04,000 Tonne which is going to increase by 177%

(approx.) which in turn will be production of 38,88,000 Tonne in future.

The demand for cement in North East is 39,20,000 Tonne where again a deficit is present.

Here cement has to be brought from other state which is going to increase the demand of

cement transportation.

The upcoming plant in North East region will serve as a growth booster for transportation

sector, which result increase in the sale of trucks.

At present Indian Railway is serving Guwahati, Dibrugarh, and Tinsukia only and most of the

upcoming cement plant are to be located in Meghalaya, which ultimately most of the cement

plant has to depend on road transportation, which result again increase in the sale of trucks.

ASSUMPTION: Presently 2000 Trucks (approx.) are working in cement Industry as demand

for cement is increasing by 177% (approx.) so 4000 more Trucks (approx.) is required in

North East.


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CHAPTER-VI

CONCLUSIONS AND SUGGESTIONS


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6.1 CONCLUSIONS

In todays world of competition, striving in the market is most important and for that every

one should be the market innovator, bring out new stategies and policies to attract more

customers. Tata Motors is the market leader in trucks in North East and being a market leader

it enjoys some special advantages and can take this opportunity to increase its market share

further.

Earlier in North East , Tata motors used to be the only player in case of trucks as it is the

oldest and most trusted brand by the people. Earlier a truck means a Tata truck and there is

no place of any other brands. A layman can also identify the truck to be that of Tata. But

recently few other brands like Ashok leyland is trying to enter the market, but its entrance is

very slow as Tata has already entered into the heart and soul of the people. From my survey I

have found that a very few percentage of people who want a change want to try trucks from

other brands. So I would suggest that as Tata motors is very rich in R&D, so new innovations

should be made in the trucks so that still more people are attacted to this brand only.

At last, I would like to conclude that North East is developing like anything in every field. So

keep pace with the developments the truck market is also bound to increase and this fact is

already known from the survey as majority of people have additional requirement of trucks to

meet the ever increasing demend. So Tata Motors can explore this development to the

optimum level to increase its market share further , gather maximum revenue and maintainthe market leader position. This research will also help TATA MOTORS to assess the current

status of its trucks and will also let TATA MOTORS know the new initiatives to be

undertaken to improve the product and win the customers loyalty.


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6.2 SUGGESTIONS

TATA should try reaching the small owner of trucks & tractor trailer as they are the

real buyer of new M&HCV.

TATA has got a good network of spare parts distributor which has to be consistently

as its supplier base is proving to be vanguard.


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APPENDICES

QUESTIONS SCHEDULE FOR THE TRANSPORT COMPANY:

Dear Customer,

We are always seeking ways to improve our services for our customers. Please help us to do

so by taking a few minutes to complete this form and tell us what you think.

Please fill in the following details:

1. Name of the company.

2. How many trucks are you using?

3. Which brand?

i. Tata.

ii. Ashok Leyland.

iii. Swaraj Mazda.

iv. Eicher.

4. Where is your truck operating?

i. Within Guwahati

ii. Outside Guwahati


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5. If outside Guwahati, mention the location?

1. 7.

2. 8.

3. 9.

4. 10.

5. 11.

6. 12.

6. What is your payload Ton?

PRIMARY

SECONDARY

7. Number of trips per month?

.

8. Mileage of trucks?

HILLS

PLAIN

EMPTY


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9. Life of tyre?

Front:

i. 5-6 Months.

ii. 6-7 Months.

iii. 7-8 Months.

iv. 8-9 Months

Rear:

i. 3-4 Months.ii. 4-5 Months.

iii. 5-6 Months.

iv. 6-7 Months.

10. On what basis you charge the fare/freight of your truck?

....

11. Additional charges?

Primary:

Secondary:


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12. Which brand of cement do you think the demand is most?

i. Topcem cement.

ii. Star cement.

iii. Suriya cement.

iv. JUD cement.

v. Other (specify).

13. How much quantity do they transport of different brand?

i. Topcem cement.

ii. Star cement.

iii. Suriya cement.

iv. JUD cement.

v. Other (specify).

14. Are you satisfied with the performance of your trucks?

i. Yes

ii. No

15. Based on your present performance of your truck, which brand would you like to

buy?

i. Tata.

ii. Ashok Leyland.

iii. Other (specify).


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16. Do you have additional requirement of trucks?

i. Yes

ii. No

17. If yes, when you will buy?

i. Within 1 month.

ii. Within 6 months.

iii. Within 1 year.

iv. Later than that.

THANK YOU FOR YOUR COOPERATION AND VALUABLE TIME.

DATE:

PLACE:


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BIBLIOGRAPHY

BOOKS:

Nargundkar Rajendra, Marketing Research Tata Mc Graw Hill Publishing

Company Limited New Delhi 2006, 51-65

SITES:

www.google.com

www.wikipedia.com

www.tatamotors.com

www.scirbd.com

www.adhunik.com

www.cmcl.com

www.mcl.com

opportunity in cement transportation for 2009-10 in north east

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