CHAPTER 1RESEARCH METHODOLOGY         1
INTRODUCTION AND HISTORYIntroduction:-        The cement industry is experiencing a boom on account of the overall growtho...
control the sale and distribution of cement at regulated prices. After all theseinitiatives, the sales increased along wit...
Problem Statement:A Macro analysis of Cement Industry in India.Objectives:           I. To study the major players and the...
LITERATURE RIVEWArticle 1India is the 2nd largest cement producer in world after china .Right from layingconcrete bricks o...
from this government also discussed with cement industry not to have increase inprizes and keep consumer interest in mind....
Capacity EnhancementDue to the strong demand as a result of increased real estate and constructionactivity inthe country, ...
Research Design:Research design selected for this project is Descriptive in natureData sources:Primary sources:    Struct...
o    There are chances of biased responses due to some lack of information.Statistical   test procedures used for analysis...
CHAPTER 2INDUSTRY PROFILE       10
INDUSTRY PROFILEIndian Cement IndustryAn Overview1. Indian cement industry dates back to 1914 - first unit was set-up at P...
for all construction works such as housing and industrial construction, as well as forcreation of infrastructures like por...
Statistics                      Table 1 - Cement Production & Despatches (P)                                              ...
Technological AdvancementsModernization and technology up-gradation is a continous process for any growingindustry and is ...
INTRODUCTIONWhat is cement?Cement is a mixture of limestone, Clay, Silica and Gypsum. It is a fine powder whichwhen mixed ...
Gypsum and Pozzolanic materials which, though they do not have cementingproperties in themselves, combine chemically with ...
value, in tiles and for flooring. White cement is much more expensive than greycement.5. Specialized Cement:Oil Well Cemen...
ExportsApart from meeting the entire domestic demand, the industry is also exporting cementand clinker. The export of ceme...
Cement DispatchesCement industry in India has successfully maintained almost total capacity utilizationlevels, which resul...
Mergers and Acquisitions in Cement Industry in India      UltraTech Cement is going to absorb its sister concern Samruddhi...
State wise CapacityAs cement is a low value commodity, freight costs assume a significant proportion ofthe final cost. Tra...
Table 3 Region wise capacityNorthern RegionPunjab                              2173.34Delhi                               ...
CentralU.P.                                                        6297.00M.P.                                            ...
dealers take order from buyers and place it to the companies, co ordinate and monitorthe timely dispatch of said orders.En...
Government PoliciesGovernment policies have affected the growth of cement plants in India in variousstages. The control on...
Chart 4 Wholesale price index of cement      WPI for March 2008-09 was 11% higher than the WPI for March 2007-08.MarginsCe...
Chart 5 Growth in sales volume and valueReturnsThe key driver of profitability is cement prices, which fluctuate depending...
Table 4 - Peer Comparison                                   P/E     P/BV                    Market Cap                    ...
Export of cement from IndiaThe Indian cement industry exported around 6 mt of cement during FY2008-09,accounting for aroun...
Table 5 World cement productionThe graph shows that the production of cement in India is at 2nd place after China, thishig...
Indian Technology AdvantageThe manufacturing process of cement consists of the mixing, drying and grinding oflimestone, cl...
Top companies in the cement industry match quite well with world standards in termsof energy (thermal energy Kcal/kg of cl...
Chapter 3Introduction to company           33
“ OUR SOUNDNESS IS IN YOUR LIFE ”               34
GROUP PROFILEMISSIONTo produce, market and develop high construction materials whilst complying withprinciples of sustaina...
Quality: Compliance with national and international standards, particularly regardingProduct Certification and to the prop...
WORLDWIDE PRESENCE                                                                         Figure 1CIMPOR - Cimentos de Po...
1982The Maia distribution terminal is built. The 3rd line at the Souselas plant initiatesactivity, with a capacity for 1 m...
WORLDWIDE JOURNEY • PORTUGAL       – SINCE 1976 • SPAIN          – SINCE 1992 • MOZAMBIQUE     – SINCE 1994 • MOROCCO     ...
INDIA - SINCE 2008                         (Plant)                  1.2 Million MT / yearShree Digvijay cement Co. Ltd.- S...
Shree Digvijay Cement CompanyCOMPANY PROFILEShree Digvijay Cement Co Ltd., established on November 6, 1949 at Sikka –Jamna...
Product range of the company includes:     Ordinary Portland Cement 53 grade (OPC) as per BIS / BS / ASTM / SLS     standa...
1967 Enhancement of cement production capacity to 6 lac M.T per annum.     1979 Beawar cement project initiated with finan...
1996- ISO - 9002 Accreditation     2002- Bharat Shells Lubricant Excellency Award     2003- Century International Quality ...
COMPETITORSUltratech CementUltraTech Cement Limited has an annual capacity of 52 million tonnes. Itmanufactures and market...
Ambuja CementAmbuja Cements Ltd. (ACL) is one of the leading cement manufacturing companiesin India. The Company, initiall...
Jaypee CementThe Jaypee group is the 3rd largest cementproducer in the country. The groups cementfacilities are located in...
THEORETICAL BACKGROUNDPromotion is persuasive communication. It is a highly visible element in themarketing mix. It tells ...
2) PUBLIC RELATIONIt refers to programmes designed to promote or protect a company image andproducts. Publicity is any unp...
OBJECTIVE OF SALES PROMOTION1. Objective for consumer promotion:(a) Encourage greater purchase volume(b) Attract new custo...
Prices-off SalesContestGift itemsCredit facilitiesTrade showSales contestsTrade shows conventionsGift itemsPromotional kit...
How to Establish a Promotional MixYou drive sales by promoting the benefits of your companys goods or services topools of ...
Strategies of promotion mixPush & Pull Strategies -                                       Figure 4Communication by manufac...
Chapter 4Pest analysis, Swot analysis and      Five force analysis               54
PEST ANALYSIS OF INDIAN CEMENT INDUSTRY                                          Figure 5The PEST Analysis is a framework ...
In 2002 the world production of hydraulic cement was 1,800 million metric tons. Thetop three producers were China with 704...
AMBUJA CEMENT etc. It has been seen in the past, as well, that mini cement plantswith low brand value and image are not ab...
SWOT ANALYSIS                                           Figure 6    To plan marketing and management strategies for busine...
o   Shree Digvijay Cement has good loyal stockiesto   Management of MNC that is Cimpor group is an add advantage to the co...
Threatso   The nature of the economy has uncovered a number of threats to the cement industry.    The cement industry grea...
PORTER’S 5-FORCE MODEL FOR CEMENT                                  INDUSTRYTHREAT FOR ENTRANTS:The high capital costs acts...
BARGAINING POWER OF SUPPLIERS:The major inputs are coal and power. The Prices of both coal and power aredetermined by the ...
Chapter 5Data Analysis and interpretation               63
Data Analysis and interpretation1) No. of years in Business        Less than 5 years          6-10 years          11-15 ye...
2) What are the grades you dealing with ?            53 Grade Cement            PPC Grade Cement            Others        ...
3) Rank the following brands according to your preference ?         Ultratech         Ambuja         Jaypee         Hathi ...
Ambuja Ranks         1         2              3               4            5        6        7Responses     20         53 ...
Jaypee Ranks         1         2               3            4             5         6        7Responses      16        6  ...
Hathi  Ranks          1          2              3              4             5        6         7Responses        7       ...
Kamal  Ranks         1         2           3             4            5        6       7Responses       7         4       ...
Sanghi  Ranks         1          2              3             4            5        6        7Responses       8          6...
4) How much quantity of cement you sell per month?        10-50 tones        50-100 tones        100-150 tones        More...
73
5) Reason for selling particular brand of cement ?         Customer Acceptance/Brand Image         Pricing         Quality...
interested in price rather than quality so dealers of Jaypee, Kamal, Hathi and Sidheeconsiders price as a reason for custo...
7) Reason for selling particular brand of cement ?        Customer Acceptance/Brand Image        Quality        Pricing   ...
Ambuja                                      Quality       Pricing         Transport                 Extremely             ...
Jaypee                                          Quality    Pricing        Transport                  Extremely satisfied  ...
Hathi                                        Quality     Pricing        Transport                  Extremely              ...
Sanghi                 Column1               Quality   Pricing   Transport                 Extremelysatisfied      1      ...
Kamal                                       Quality     Pricing     Transport                   Extremely                 ...
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Anand research mital
Upcoming SlideShare
Loading in …5
×

Anand research mital

2,695 views

Published on

Published in: Business
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,695
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
122
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Anand research mital

  1. 1. CHAPTER 1RESEARCH METHODOLOGY 1
  2. 2. INTRODUCTION AND HISTORYIntroduction:- The cement industry is experiencing a boom on account of the overall growthof the Indian economy. The demand for cement, being a derived demand, dependsprimarily on the industrial activity, real estate business, construction activity, andinvestment in the infrastructure sector. India is experiencing growth on all these frontsand hence the cement market is flourishing like never before. Indian cement industryis globally competitive because the industry has witnessed healthy trends such as costcontrol and continuous technology up gradation. Global rating agency, Fitch Ratings,has commented that cement demand in India is expected to grow at 10% annually inthe medium term buoyed by housing, infrastructure and corporate capitalexpenditures.History:- The attempt to produce cement in India dates back to 1889 when a Calcuttafirm attempted to produce cement from Argillaceous (kankar). But the first organizedeffort on mass scale to manufacture Portland cement commenced in Madras(Washermanpet), in 1904, by South India Industries Limited (Cement ManufacturersAssociation 1964; Gadhok 2000). The factory could not succeed hence it failed. In 1914 the first commissioned cement-manufacturing unit in India was set up byIndia Cement Company Limited at Porbandar, Gujarat, with an installed capacity of10,000 tonnes and production of 1000 tonnes. Subsequently two plants; one at Katni(M.P.) and another at Lakheri (Rajasthan) were set up. The First World War gavepositive stimulus to the infant industry. The following decades saw increase in number of plants, installed capacity andproduction. This period can thus be called the Nascent Stage of Indian cementindustry. The problem of supply outstripping demand was significant in early periodof the industry. Problem of disposal of cement was aggravated by the prejudice withwhich indigenous cement was regarded. This was followed by a price war betweenthe producers where they resorted to cutting down of prices and selling at belowproduction cost. This situation forced many companies into liquidation. It was thenwhen the government of India intervened into the market and referred the cementindustry to the Tariff Board. The board recommended protection by government andcooperation among existing cement units. All these events resulted in formation of Indian Cement Manufacturers‘Association in 1925 whose main function was to regulate prices in the industry. In1927, Concrete Association of India was formed whose two main objectives were toeducate public about the use of cement and to play an active role in popularizingIndian cement. The next step in the direction of rescuing cement industry was theformation of Cement Marketing Company of India Limited in 1930 to promote and 2
  3. 3. control the sale and distribution of cement at regulated prices. After all theseinitiatives, the sales increased along with more plants. In 1936, eleven companies, except Sone Valley Portland Cement CompanyLimited, merged to form Associated Cement Company Limited (ACC). In 1937,Dalmiya Jain Group set up five factories with installed capacity of 575000 tonnes andACC added four more plants. With all these expansions, price war again started offwhich resulted into a significant decrease in prices. But in the post world war period,setting up of Department of Planning and independence of the country provided freshimpetus to the industry. The price and distribution control system on cement, implemented in 1956, aimedat ensuring fair prices to producers and consumers all over the country, thus reducingregional imbalances, and at reaching self-sufficiency within a short time period.Although due to slow growth in capacity expansion and rising cost in the industry, thegovernment had to increase the fixed price several times. However, these priceincreases as well as financial incentives to enhance investment, showed little effect onthe industry. In spite of the fact that government exercised no control over the Indiancement industry all through the Third Five Year Plan (1961-1967), growth was lowdue to inadequate retention price and lack of adequate financial resources to theexisting companies. 3
  4. 4. Problem Statement:A Macro analysis of Cement Industry in India.Objectives: I. To study the major players and their Market Share II. To find the problems and prospect of Cement Industry III. To know the political, economical, social, and technological factors affecting Indian cement industry IV. To know the likely future scenario of cement industryScope of the study:The study has been done for the cement so more or less it helps in understanding thedealer‘s opinion towards the cement market.Factors affecting cement industry in india. 4
  5. 5. LITERATURE RIVEWArticle 1India is the 2nd largest cement producer in world after china .Right from layingconcrete bricks of economy to waving fly over‘s cement industry has shown andshows a great future. The overall outlook for the industry shows significant growth onthe back of robust demand from housing construction, Phase-II of NHDP (NationalHighway Development Project) and other infrastructure development projects.Domestic demand for cement has been increasing at a fast pace in India. Cementconsumption in India is forecasted to grow by over 22% by 2009-10 from 2007-08.Among the states, Maharashtra has the highest share in consumption at12.18%,followed by Uttar Pradesh, In production terms, Andhra Pradesh is leadingwith 14.72% of total production followed by Rajasthan. Cement production grew atthe rate of 9.1 per cent during 2006-07 over the previous fiscals total production of147.8 mt(million tons). Due to rising demand of cement the sales volume of cementcompanies are also increasing & companies reporting higher production, higher salesand higher profits. The net profit growth rate of cement firms was 85%. Cementindustry has contributed around 8% to the economic development of India. Outsiders(foreign players) eyeing India as a major market to invest in theform of either merger or FDI (Foreign Direct Investment). Cement industry has a longway to go as Indian economy is poised to grow because of being on verge ofdevelopment. Despite the growth of Indian cement industry India lags behind the percapita production. Supply for cement is expected to remain tight which, in turn, willpush up prices of cement by more than 50%. The most important factor for betterprices is consolidation of the industry. It has just begun and we will see moreconsolidation in the coming years. Other budget measures such as cut in import dutyfrom 12.5 per cent to nil etc. are all intended to cut costs and boost availability ofcement. Sadly the adverse effects of global slowdown have not speared thisindustry too. Demand is sluggish, the government is keeping an eagle eye on prizes,domestic coal and pet coke, prizes have increased sharply and utilizations rates aredown. The numbers coming out are a reflection of grim times. ACC the country‘slargest cement company that‘s controlled by Swiss giant HOLCIM, registered 2% fallin august sales. The biggest fall since Feb. 2007. Production fell by 5%. To standagainst the problematic situation, government as well as cement industry has takensome steps. Companies are focusing on cost of transportation. One of the strategy is todecrease dependence on road & opt for sea logistics as that can cut transportation costby 30- 50 %. Some plants are adopting futuristic plan such as setting up captive powerplant, moving closer to the customers by creating clicker, crushing, and capacity inkey markets, to be more customer centric to generate better revenue. India shouldpush for stricter regulations of market place as to control the prices of big companiesand prevent them from forming cartels and exchanging information. To fight with thehigh inflation, government wants to import more cement from Pakistan .Howevercement prizes are not very much high as other items but still they are increasing. Andthe reason of high prize is surging cost of raw material and transportation cost. Apart 5
  6. 6. from this government also discussed with cement industry not to have increase inprizes and keep consumer interest in mind.Conclusion: The question arise in front of the government is whether the demand by thegovernment is possible to increase through expenditure on infrastructure or notaccording to the current state of economy when so many crises are going on or howthe government allocation of US$ 3.23 billion for the National Highway development,Project will keep the demand for cement alive? And to what extent the prizes ofcement should be increase so that consumer can‘t affect.Source:www.researchandmarkets.com/cementindustry/2010Infrastructure article on cement industry.Article 2Key Parameters of Indian Cement IndustryThere are 127 firms present in the cement sector across the country, distributed intofivegeographic zones. The southern Zone has the maximum share in the All-Indiaproduction of cement, followed by the Northern Zone for the years chosen foranalysis (2004, 2005 and 2006). Firms are spread across various states in thecountry.Concentration Index: C3The Indian cement industry has three major players having a combined marketshare/size of 34.5 as on March 2006. Concentration Index, C5 is 43.31 as on March,2006. The concentration index has remained more or less constant across the yearssuch a high concentration index is a factor that strongly encourages collusion, asdiscussed in earlier sections. However, it is important to note that there are asignificantnumber of small players in each zone.Productionthe zone wise cement production figures. In Northern andCentral zones, productionwas sufficient to cater to the entire demand. As such therewas no shortfall. Even inthe southern zone, the production was in excess to thedemand and there was asurplus for all months in two years. In eastern and westernzones, the production lagsthe demand slightlyCapacity UtilisationData over the past two years, as illustrated through Figure 5.2.5 reveals that thecementproducing companies have utilized their capacity to the maximum to cater tothe surging demand. 6
  7. 7. Capacity EnhancementDue to the strong demand as a result of increased real estate and constructionactivity inthe country, all the major cement producing firms are ramping up theirproductioncapacity. The table reveals the expansion plan of a few ofthe cementproducing firms. The increased production capacity would translate intoincreased sales volume.Expense to Sales RatioExpense (or cost to sales) ratio per annum of the cementcompanies has decreased over the years. Though the total sales have picked up, thecost of producing cement has not increased at the same pace. The sharp increase insales without a corresponding increase in cost does indicate possibility of cartelbehavior. A counter argument could be that the declining ratio is attributed to theeconomies of scale because of increased capacity utilization.Source:www.researchandmarkets.com/parametercementindustry/2010article of parameters of cement industry of india. 7
  8. 8. Research Design:Research design selected for this project is Descriptive in natureData sources:Primary sources:  Structured QuestionnaireSecondary sources:  Companies literature  Industry publications  Business Articles  Business Magazines  Library Research  Internet SurfingPopulation: AhmedabadSampling unit: a cement dealer in AhmedabadSample size: 70Sampling method: Convenience and judgmental SamplingThe aim of taking sample size 70 is o I have taken sampling of those individuals who are cement dealers. o I have taken different brands of cement and dealers of each brand are selcected. o There was also problem of time, cost constraints as well as lack of positive response. 8
  9. 9. o There are chances of biased responses due to some lack of information.Statistical test procedures used for analysis:Descriptive statistics were used for analysis and interpretation, one sample Z test formeans was used for hypothesis testing.Expected contribution of the study and beneficiaries:  We as a student of management would be the most benefited. As this study will help us to gain in depth and live knowledge and insight in to the subject matter.  The organization which will show interest to help us carry out this project would also be benefited with the same.  The college would also benefit from the project report, as this would help the college to build the reputation within the corporate world.Limitations: 1. Lack of co-operation from the retailers for interviews. 2. It was found in some cases dealers showed inclination towards certain brands which gave them more margins when compared to others. 3. The time constraint faced in the project might have affected the comprehensiveness of its findings. 9
  10. 10. CHAPTER 2INDUSTRY PROFILE 10
  11. 11. INDUSTRY PROFILEIndian Cement IndustryAn Overview1. Indian cement industry dates back to 1914 - first unit was set-up at Porbandar, witha capacity of 1000 tonnes.2. Currently India is ranked second in the world with an installed capacity of 114.2Million tonnes. Industry estimated at around Rs. 18,000 crores (US $ 4185 mn).3. Current per capita consumption - 85 kgs, as against world standard of 256 kgs.4. Cement grade limestone in the country reported to be 89 bt. A large proportionhowever is unexploitable.5. 55 - 60% of the cost of production are government controlled6. Cement sales primarily through a distribution channel. Bulk sales account for < 1%of the total cement produced.7. Ready mix concrete a relatively nascent market in IndiaInstalled CapacityThe Indian cement industry is the second largest producer of quality cement, whichmeets global standards. The cement industry comprises 130 large cement plants withan installed capacity of 160.24 million tonnes and more than 365 mini cement plantswith an estimated capacity of 11.10 million tonnes making a total installed capacity of171.34 million tonnes.Cement is one of the core industries which plays a vital role in the growth andexpansion of a nation. It is basically a mixture of compounds, consisting mainly ofsilicates and aluminates of calcium, formed out of calcium oxide, silica, aluminiumoxide and iron oxide. The demand for cement, depends primarily on the pace ofactivities in the business, financial, real estate and infrastructure sectors of theeconomy. Cement is considered preferred building material and is used worldwide 11
  12. 12. for all construction works such as housing and industrial construction, as well as forcreation of infrastructures like ports, roads, power plants, etc. Indian cementindustry is globally competitive because the industry has witnessed healthy trendssuch as cost control and continuous technology upgradation.The Indian cement industry is extremely energy intensive and is the third largestuser of coal in the country. It is modern and uses latest technology, which is amongthe best in the world. Also, the industry has tremendous potential for developmentas limestone of excellent quality is found almost throughout the country.Current ScenarioThe Indian cement industry is the second largest producer of quality cement. IndianCement Industry is engaged in the production of several varieties of cement such asOrdinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), PortlandBlast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid Hardening PortlandCement, Sulphate Resisting Portland Cement, White Cement, etc. They areproduced strictly as per the Bureau of Indian Standards (BIS) specifications andtheir quality is comparable with the best in the world.The Indian cement industry is the second largest in the world.The industry occupiesan important place in the national economy because of its strong linkages to othersectors such as construction, transportation, coal and power. The cement industry isalso one of the major contributors to the exchequer by way of indirect taxes.Indian Cement industry is comprised of 148 large cement plants with around 46member companies.The installed capacity of these large cement plants is estimatedto be 219.17 million tonne during 2009-10 (as on March 2009).There are 95 largecement plants with capacity of of million tonnes and above and around 1,40,000manpower is employed uder these plants (one Mn.T cement generates downstreamemployment to 50,000 persons). Also,there are 365 mini and white cement plantswith an installed capacity of 11.10 million tonne (P). 12
  13. 13. Statistics Table 1 - Cement Production & Despatches (P) 2010-11 2009-10 Description Jan-11 Dec-10 Jan-10 (Apr-Jan) Cement 14.52 13.59 14.65 136.51 130.85 Production Cement 14.47 13.60 14.59 135.56 130.09 Despatches Source: Cement Manufacturers AssociationCement production during April to January 2010-11 was 136.51 million tonnes ascompared to 130.85 million tonnes during the same period for the year 2009-10.Despatches were estimated at 135.56 million tonnes during April to January 2010-11 whereas during the same period for the year 2009-10, it stood at 130.09 milliontonnes.Key Drivers of Cement Industry Buoyant real estate market Increase in infrastructure spending Various governmental programmes like National Rural Employment Guarantee Low-cost housing in urban and rural areas under schemes like Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Indira Aawas Yojana 13
  14. 14. Technological AdvancementsModernization and technology up-gradation is a continous process for any growingindustry and is equally true for the cement industry. At present, the quality ofcement and building materials produced in India meets international standards andbenchmarks and can compete in international markets. The productivity parametersare now nearing the theoretical bests and alternate means. Substantial technologicalimprovements have been brought about and today, the industry can legitimately beproud of its state-of-the-art technology and processes incorporated in most of itscement plants. This technology up gradation is resulting in increased capacity,reduction in cost of production of cement. 14
  15. 15. INTRODUCTIONWhat is cement?Cement is a mixture of limestone, Clay, Silica and Gypsum. It is a fine powder whichwhen mixed with water sets to a hard mass as a result of hydration of the constituentcompounds. It is the most commonly used construction material. Cement ismanufactured by burning a mixture of limestone and Clay at high temperatures in akiln, and then finely grinding the resulting clinker along with Gypsum. The endproduct thus obtained is called Ordinary Portland Cement (OPC).Different Types of CementThere are different varieties of cement based on different compositions according tospecific end uses, namely Ordinary Portland Cement, Portland Pozolona Cement,Portland Blast Furnace Slag Cement, White Cement and Specialized Cement. Thebasic difference lies in the percentage of clinker used.1. Ordinary Portland cement (OPC):OPC, popularly known as grey cement, has 95% clinker and 5% of Gypsum andother materials. It accounts for 70% of the total consumption. White cement is avariation of OPC and is used for decorative purposes like rendering of walls, flooringetc. It contains a very low proportion of iron oxide. Ordinary Portland cement is themost commonly used cement for a wide range of applications. These applicationscover dry-lean mixes, general-purpose ready-mixes, and even high strength pre-castand pre-stressed concrete.2. Portland Pozolona Cement (PPC):Portland pozzolana cement is Ordinary Portland Cement blended with pozzolanicmaterials (power-station fly ash, burnt clays, ash from burnt plant material orSiliceous earths), either together or separately. Portland clinker is ground with 15
  16. 16. Gypsum and Pozzolanic materials which, though they do not have cementingproperties in themselves, combine chemically with Portlandcement in the presence of water to form extra strong cementing material which resistswet cracking, thermal cracking and has a high degree of cohesion and workability inconcrete. PPC has 80% clinker, 15% pozolona and 5% gypsum and accounts for 18%of the total cement consumption. It is cheaply manufactured because it uses flyash/burnt clay/coal waste as the main ingredient. It has a lower heat of hydration,which helps in preventing cracks where large volumes are being cast.3. Portland Blast Furnace Slag Cement (PBFSC):PBFSC consists of 45% clinker, 50% blast furnace slag and 5% Gypsum and accountsfor 10% of the total cement consumed. It has a heat of hydration even lower than PPCand is generally used in construction of dams and similar massive constructions.Portland blast-furnace slag cement contains up to 70 per cent of finely ground,granulated blast-furnace slag, a nonmetallic product consisting essentially of Silicatesand Aluminum-silicates of Calcium. Slag brings with it the advantage of the energyinvested in the slag making. Grinding slag for cement replacement takes only 25 percent of the energy needed to manufacture Portland cement. Using slag cement toreplace a portion of Portland cement in a concrete mixture is a useful method to makeconcrete better and more consistent. Portland blast-furnace slag cement has a lightercolour, better concrete workability, easier finish ability, higher compressive andflexural strength, lower permeability, improved resistance to aggressive chemicalsand more consistent plastic and hardened consistency.4. White Cement:White Portland cement has essentially the same properties as gray cement, except forcolor, which is a very important quality control issue in the industry. It ismanufactured using fuel oil (instead of coal) and with iron oxide content below 0.4%to ensure whiteness. Special cooling technique is used. It is used to enhance aesthetic 16
  17. 17. value, in tiles and for flooring. White cement is much more expensive than greycement.5. Specialized Cement:Oil Well Cement: is made from clinker with special additives to prevent anyporosity. Rapid Hardening Portland cement: It is similar to OPC, except that it is ground much finer, so that on casting, the compressible strength increases rapidly. Water Proof Cement: OPC, with small portion of calcium stearate or non- saponifibale oil to impart waterproofing properties.Capacity and ProductionThe cement industry comprises of 125 large cement plants with an installed capacityof 148.28 million tonnes and more than 300 mini cement plants with an estimatedcapacity of 11.10 million tonnes per annum. The Cement Corporation of India, whichis a Central Public Sector Undertaking, has 10 units. There are 10 large cement plantsowned by various State Governments. The total installed capacity in the country as awhole is 159.38 million tonnes. Actual cement production in 2008-09 was 116.35million tonnes as against a production of 106.90 million tonnes in 2007-08,registering a growth rate of 8.84%.Keeping in view the trend of growth of the industry in previous years, a productiontarget of 126 million tonnes has been fixed for the year 2009-10. During the periodApril-June 2009, a production (provisional) was 31.30 million tonnes. The industryhas achieved a growth rate of 4.86 per cent during this period. The graph above showsthe consumption of cement in different areas of housing, infrastructure and industries. 17
  18. 18. ExportsApart from meeting the entire domestic demand, the industry is also exporting cementand clinker. The export of cement during 2007-08 and 2008-09 was 5.14 milliontonnes and 6.92 million tonnes respectively. Export during April-May, 2009 was 1.35million tonnes. Major exporters were Gujarat Ambuja Cements Ltd. and L&T LtdRecommendations on Cement IndustryFor the development of the cement industry ‗Working Group on Cement Industry‘was constituted by the Planning Commission for the formulation of X Five Year Plan.The Working Group has projected a growth rate of 10% for the cement industryduring the plan period and has projected creation of additional capacity of 40-62million tonnes mainly through expansion of existing plants. The Working Group hasidentified following thrust areas for improving demand for cement; (i) Further push to housing development programs; (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 Cement Industry,the Department of Industrial Policy & Promotion commissioned a study on the globalcompetitiveness of the Indian Industry through an organization of international repute,viz. KPMG Consultancy Pvt. Ltd. The report submitted by the organization has madeseveral recommendations for making the Indian Cement Industry more competitive inthe international market. The recommendations are under consideration.Technology Up-gradationCement industry in India is currently going through a technological change as a lot ofupgradation and assimilation is taking place. Currently, almost 93% of the totalcapacity is based entirely on the modern dry process, which is considered as moreenvironment-friendly. Only the rest 7% uses old wet and semi-dry processtechnology. 18
  19. 19. Cement DispatchesCement industry in India has successfully maintained almost total capacity utilizationlevels, which resulted in maintaining a 10% growth rate. In 2006-07, the total dispatchwas 155 MT, which rose up to 170 MT in 2007-08. The month of October 2009 saw acement dispatch of 12.22 MT, which was almost 9% higher than the total cementdispatch of 11.21 MT in the same month in the previous year.Major Players in Indian Cement IndustryThere are a number of players prevailing in the cement industry in India. However,there are around 20 big names that account for more than 70% of the total cementproduction in India. The total installed capacity is distributed over around 129 plants,owned by 54 major companies across the nation.Table 2 Following are some of the major names in the Indian cement industry:Company Production Installed CapacityACC 17,902 18,640Gujarat Ambuja 15,094 14,860Ultratech 13,707 17,000Grasim 14,649 14,115India Cements 8,434 8,810JK Group 6,174 6,680Jaypee Group 6,316 6,531Birla Corp. 5,150 5,113Source: Cement Manufacturers Association 19
  20. 20. Mergers and Acquisitions in Cement Industry in India UltraTech Cement is going to absorb its sister concern Samruddhi Cement to become biggest cement company in India. Worlds leading foreign funds like HSBC, ABN Amro, Fidelity, Emerging Market Fund and Asset Management Fund have together bought 7.5% of India Cements (ICL) at a cost of US$ 124.91 million. Cimpor, a Cement company of Portugal, has bought 53.63% stake that Grasim Industries had in Shree Digvijay Cement. French cement company Vicat SA bought 6.67% share of Sagar Cement at a cost of US$ 14.35 million. Holcim now holds 56% stake of Ambuja Cement. Previously it held 22% of stake. The company utilized various open market transactions to increase its stakes. It invested US$ 1.8 billion for that.Recent Investments in the Indian Cement Industry In a recent announcement, the second largest cement company in South India, Dalmia Cement declared that its going to invest more than US$ 652.6 million in the next 2-3 years to add 10 MT capacity. Anil Ambani-led Reliance Infrastructure is going to build up cement plants with a total capacity of yearly 20 MT in the next 5 years. For this, the company will invest US$ 2.1 billion. India Cements is going to set up 2 thermal power plants in Andhra Pradesh and Tamil Nadu at a cost of US$ 104 billion. Anil Ambani-led Reliance Cementation is also going to set up a 5 MT integrated cement plant in Maharashtra. It will invest US$ 463.2 million for that. Jaiprakash Associates Ltd has signed a MoU with Assam Mineral Development Corporation Limited to set up a 2 MT cement plant. The estimated project cost is US$ 221.36 million. 20
  21. 21. State wise CapacityAs cement is a low value commodity, freight costs assume a significant proportion ofthe final cost. Transporting costs render the prices of cement in distant destinationsuncompetitive. For instance, it is financially infeasible to transport cement by roadover 250 kms. Railways are mostly used to transport cement over longer distances.However, its bulky nature and infrastructure bottlenecks render even rail transportunviable over very long distances (that is why Madras Cements or India Cements,located in the south, can hardly make a difference to the fortunes of west-basedcompanies like Gujarat Ambuja). Therefore, manufacturers tend to sell cement at thenearest market first and sell in distant markets only if additional realization is greaterthan freight costs incurred. This is the reason for showing regional demand rather thanstate demand in case of cement.Region wise CapacityThe Indian cement industry has to be viewed in terms of five regions:- North (Punjab, Delhi, Haryana, Himachal Pradesh, Rajasthan, Chandigarh, J&K and Uttranchal); West (Maharashtra and Gujarat); South (Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Pondicherry, Andaman & Nicobar and Goa); East (Bihar, Orissa, West Bengal, Assam, Meghalaya, Jharkhand and Chhattisgarh); and Central (Uttar Pradesh and Madhya Pradesh). 21
  22. 22. Table 3 Region wise capacityNorthern RegionPunjab 2173.34Delhi 500.00Haryana 172.00Himachal Pradesh 4060.00Rajasthan 16299.34J&K 200.00TOTAL 23404.68WestMaharashtra 8950.00Gujarat 12937.00TOTAL 21887.00SouthTamil Nadu 12913.18Andra Pradesh 19831.02Karnataka 9744.00Kerala 420.00TOTAL 42908.20EastBihar 1000.00Orissa 2761.00West Bengal 2291.66Assam Meghalaya 400.00Jharkhand 3475.01Chattisgarh 11287.33TOTAL 21215.00 22
  23. 23. CentralU.P. 6297.00M.P. 16185.00TOTAL 20482.00South accounts for 33.03% of cement production capacity of the country, with AndraPradesh accounting for 15.27% of the total production capacity of India. It has aninstalled capacity of around 20mn tons of cement and ranks first in the country,followed by Tamil Nadu with 9.94% of the total production capacity. North accountsfor 18.02% of the total production capacity, with Rajasthan at 12.55% of the totalproduction capacity of the country. West accounts for 16.85% of the total productioncapacity. Maharashtra and Gujarat have production capacity of 6.89% and 9.96%respectively. East and Central Regions account for 16.33% and 15.77% of the totalproduction capacity of the country respectively.Trade between these regions is on a very low scale mainly because of thetransportation bottlenecks and uncompetitive cost of transportation. The Southernregion dominated the cement consumption at 44.5 million tonnes in FY 08-09,accounting for about 30% of total domestic cement consumption. During FY 08-09,Southern region has witnessed highest CAGR of cement demand growth at 10.4%followed by Northern and Eastern regions at 8.9% and 9%, respectivelyMechanics of Distribution Channels of SectorCompanies invariably hire agents or transport cements to own or governmentwarehouses either via roadway or railways. Incase of exports, cement reaches thenearest port via roadways or railways and is then transferred to the importing country.Domestically, from agents or warehouses the cement is transported to thedealers/distributors and in turn to sub dealers who finally sell it to the end users. Theremay or may not be physical ownership of goods. In the second case, dealers and sub 23
  24. 24. dealers take order from buyers and place it to the companies, co ordinate and monitorthe timely dispatch of said orders.Energy and Transport RequirementsThe cement industry is dependent on three major infrastructural sectors of theeconomy: coal, power and transport. The inputs from these three sectors account forroughly 50% of the cost of cement. Both the availability and the cost of these inputshave a vital bearing on the fortunes of the cement players. All these sectors are largelyin the State sector, and, historically cement companies have had virtually no controlon the cost or availability of these inputs. Hence, the industry response has largelybeen in the form of achieving efficiency gains and finding alternatives (captive power,use of waterways). One additional external influencer of the cement industryperformance is the taxes and levies imposed by the Central and State Governments.This together account for around 30% of the selling price of cement in the Indiancontext.The shortage in domestic coal production coupled with the poor quality has resultedin cement companies resorting to importing coal, or going in for open marketpurchase of coal, or using alternative fuel such as lignite or pet coke.Use of imported coal has become an essential feature of the Indian cement industryand has shown a rising trend during the last few years.Power and Fuel cost form the largest proportion of the cost structure. This reflects theeffects of the trend in rising global oil and fuel prices. On the other hand Employeecosts form the smallest proportion of over all cost. This is essentially because cementindustry is a very capital intensive industry. This also accounts for the hugedepreciation and interest costs which accrue on the plant and machinery. Moreover,the labour employed is essentially semi-skilled excluding the top management whichbrings down labour costs. 24
  25. 25. Government PoliciesGovernment policies have affected the growth of cement plants in India in variousstages. The control on cement for a long time and then partial decontrol and then totaldecontrol has contributed to the gradual opening up of the market for cementproducers. The stages of growth of the cement industry can be best described in thefollowing stages:Price and Distribution Controls (1940-1981):During the Second World War, cement was declared as an essential commodity underthe Defense of India Rules and was brought under price and distribution controlswhich resulted in sluggish growth. The installed capacity reached only 27.9 MT bythe year 1980-81.PricesThe regional variation in the Indian market has resulted in the cement prices acrossregions witnessing movement within a band, with no appreciable increase in anyregion. Differences in regional demand supply situation have translated into pricedifferences across regions. Prices are lower in Southern regions where there isnormally a supply surplus. However, prices are higher in Eastern and Western regionswhere shortages exist. The surplus position had resulted in significant pressure onprice realizations in recent years.The cyclical trough in the late-1990s had a severe impact on the industry financials.However, cement prices have firmed up during the last few years due to improvementin demand-supply position and increasing consolidation in the industry. TheWholesale Price Index (WPI) for cement increased 3.9% during FY2007-08, ascompared with a growth of 1.2% during FY2006-0 T 25
  26. 26. Chart 4 Wholesale price index of cement WPI for March 2008-09 was 11% higher than the WPI for March 2007-08.MarginsCement prices have firmed up during the last few years due to improvement indemand-supply position and increasing consolidation in the industry. The trend ingross sales realization is similar for the cement companies in our sample (comprisingpure cement companies accounting for around two-thirds of industry production andsales).The operating profits and margins for cement companies are most sensitive to cementsales realizations. During FY2008-09, riding on high average sales realizations, thecement companies posted increased operating profits and margins. This reversed thedecline in operating profits and margins during FY2007-08. This was mainly becauseof excess capacity and the consequent low price realizations. While sales volume ofthe sample companies improved 7%, operating income (OI) increased 24.2% to Rs.183.45 billion 26
  27. 27. Chart 5 Growth in sales volume and valueReturnsThe key driver of profitability is cement prices, which fluctuate depending on outlookon demand-supply gaps. The fluctuating fortunes of the Indian cement industry arevery typical of a commodity industry. The companies make bumper returns during theboom years (FY1994-96, and FY2005-08) while the performance goes downdrastically during the lean years (FY1997-2001 and FY 2009-na). The returns haveimproved significantly since FY2003 because of higher capacity utilizations,operational efficiency and cost control measures supplemented with higher salesrealizations. But at the present scenario have reduced during the first quarter of FY2009 and is still going to continue for few more years.The Indian cement industry has undergone vital changes through technologicalchanges in the pursuit of cost efficiency and drive for consolidations. Most of thecompanies are making profits. 27
  28. 28. Table 4 - Peer Comparison P/E P/BV Market Cap EV/EBIDTA ROE ROCE D/ECompany (TTM) (TTM) (Rs. in Cr.) (x) (%) (%) (x) (x) (x)Ambuja Cem. 16,446.59 12.35 2.54 7.11 20.0 23.9 0.04ACC 15,243.55 9.49 2.53 5.90 29.4 40.0 0.10Samruddhi Cem. 12,111.86 19.82 2.64 0.00 23.3 24.7 0.55UltraTech Cem. 10,447.20 9.68 2.27 7.60 26.6 28.5 0.46Shree Cement 6,549.75 9.03 3.57 3.44 61.4 34.0 1.50Birla Corpn. 2,773.13 5.28 1.56 4.07 36.4 38.9 0.32Prism Cement 2,675.36 10.94 2.29 7.16 27.4 31.2 0.44Binani Cement 1,642.06 6.00 2.43 3.87 49.0 32.8 1.58J K Cements 1,241.96 5.67 1.14 4.70 22.6 21.0 0.82Heidelberg 1,091.18 8.16 1.55 2.57 19.0 24.2 0.01Cem.JK Lakshmi 847.34 3.66 0.86 3.40 27.2 22.7 0.92Cem.OCL India 706.98 4.32 0.89 3.13 19.1 17.8 1.00Sanghi Inds. 522.45 19.47 0.77 6.52 8.4 8.2 1.39Mangalam 469.22 4.07 1.23 2.00 35.4 53.4 0.04CementSh. Digvijay 225.49 4.33 2.61 5.36 29.6 16.9 0.33CemSource: www.financialexpress.com 28
  29. 29. Export of cement from IndiaThe Indian cement industry exported around 6 mt of cement during FY2008-09,accounting for around 4% of the total production. There has been a significant year onyear variation in the export trend, implying that Companies rely on cement exports tobalance out the domestic demand supply situation. As seen from above there is excessproduction, so the difference in supply and demand is met by exporting. The export ofIndian cement has increased over the years, giving a boost to the Indian cementindustry.The demand for cement in the foreign countries is a derived demand, for it depends onindustrial activity, real estate, and construction activity. Since growth is taking placeall over the world in these sectors, Indian export of cement is also increasing.The cement industry in India has around 300 mini cement plants and 130 large cementplants. The total production capacity of these plants is around 167.36 million tons.The India cement industry is technologically very advanced, as a result of which thequality of Indian cement is now considered the second best in the world. This hasgiven a major boost to the Indian export of cement. The production of cement in Indiais not only able to meet the domestic demand, but large amounts are also exported. Afair amount of clinker and cement by-products are also exported by India. As thequality of Indian cement is very good, its demand in the international market isalways high. 29
  30. 30. Table 5 World cement productionThe graph shows that the production of cement in India is at 2nd place after China, thishigher production is a good reason for exporting cement.In 2008-2009, 3.38 million tons of cement was exported from India. That figure stoodat 3.47 million tons in 2006-07, and 3.36 million tons in 2007-08. In 2006-2007, 1.76million tons of clinker was exported from India. In 2007- 2008 clinker exportsamounted to 3.45 million tons, and in 2008- 2009 the figure stood at 5.64 milliontons. This shows that the export of Indian cement has been increasing at a steady paceover the years. 30
  31. 31. Indian Technology AdvantageThe manufacturing process of cement consists of the mixing, drying and grinding oflimestone, clay and silica into a composite mass. The mixture is then heated and burntin a pre-heater and kiln to be cooled in an air cooling system to form clinker, which isthe Semi-finished form. This clinker is cooled by air and subsequently ground withgypsum toformcement.The dryand semi-dryprocessesare morefuel-efficient. Table 6 Distribution of dry and wet Cement.The wet process requires 0.28 tonne of coal and 110 kWh of power to manufactureone tonne of cement, whereas the dry process requires only 0.18 tonnes of coal and100 kWh of power. Coal and power costs account for 35 per cent of the total cem Thedry and semi-dry processes are more fuel-efficient. The wet process requires 0.28tonne of coal and 110 kWh of power to manufacture one tonne of cement, whereas thedry process requires only 0.18 tonnes of coal and 100 kWh of power. Coal and powercosts account for 35 per cent of the total cement production costs. With 95 per cent ofthe total capacity based on the modern dry process technology, the Indian cementindustry has become more cost efficient. 31
  32. 32. Top companies in the cement industry match quite well with world standards in termsof energy (thermal energy Kcal/kg of clinker - India 665 against 690 of Japan) andpollution norms (SPM of 40 in India against 20 in Japan). 32
  33. 33. Chapter 3Introduction to company 33
  34. 34. “ OUR SOUNDNESS IS IN YOUR LIFE ” 34
  35. 35. GROUP PROFILEMISSIONTo produce, market and develop high construction materials whilst complying withprinciples of sustainability and maximizing / preserving shareholder value.STRATEGIC VISIONCIMPOR plans to remain one of the main players worldwide in the trend towardconsolidating the cement sector whilst maintaining its growth and internationalizationpolicy. It plans to maintain excellent technical, economic and financial performancecompatible with its adopted voluntary principles of sustainable development GROUP VALUESShareholders: To defend shareholders‘ legitimate interests through intrinsicappreciation of their investments in the company and adequate remuneration.Clients: Focus on the full satisfaction of client expectations in accordance with theethical principles of integrity and applicable standards.Personnel: Fair remuneration for work performed, career advancement opportunitiesand fairness of treatment.Organization: Constant search for excellence by establishing ambitious goals and byselecting leaders at all levels capable of taking responsibility and the meeting targets. 35
  36. 36. Quality: Compliance with national and international standards, particularly regardingProduct Certification and to the proper application of the Quality ManagementSystem GROUP STRATEGY • To consolidation current positions through internal growth – whilst increasing efficiency and capacity at industrial units - and greater penetration in markets where the Group already operates – expansion to activities relating with the cement line (e.g., ready-mix concrete and operation of quarries). • To make new acquisitions, with priority given to geographic areas of emerging on the emerging markets where the Group already operates, while maintaining the necessary balance through operations in consolidated and mature markets where the growth potential is offset by lower risk. • To optimize operations by taking advantage of synergies, cost cutting (particularly energy costs), higher personnel productivity and investment in R&D. • To develop trade between the Group companies so as to balance peaks in certain markets with supply in other areas. 36
  37. 37. WORLDWIDE PRESENCE Figure 1CIMPOR - Cimentos de Portugal is the largest Portuguese cement group, operating inPortugal, Spain, Mozambique, Morocco, Brazil, Tunisia, Egypt, Cape Verde, SouthAfrica, Turkey, China, Peru and India involved in manufacturing and marketingcement, hydraulic lime, concrete and aggregates, precast concrete and dry mortars.Cement production capacity with own clinker to 29.5 million tonnes per year.1976CIMPOR - CIMENTOS DE PORTUGAL, E.P. was created. 37
  38. 38. 1982The Maia distribution terminal is built. The 3rd line at the Souselas plant initiatesactivity, with a capacity for 1 million tonnes/year.1983The adaptation process, replacing fuel oil with coal, is initiated in all plants.1985The last wet production line is transformed from wet to dry process.1988Ready-mix concrete business is restructured. CIMPOR BETÃO, S.G.P.S., S.A. iscreated.1991The precast business area starts operating. PRECIMPOR, S.G.P.S., S.A. is created.1991The company becomes a public company, with the new name CIMPOR -CIMENTOS DE PORTUGAL, S.A.1992The process of internationalization begins. The Spanish holding companyCORPORACIÓN NOROESTE S.A., in Galicia, is acquired. C.M.P. - CimentosMaceira e Pataias is created and the Maceira and Pataias plants are sold.Strategic plan for total quality, the "Jump Project" was set up. 1992 38
  39. 39. WORLDWIDE JOURNEY • PORTUGAL – SINCE 1976 • SPAIN – SINCE 1992 • MOZAMBIQUE – SINCE 1994 • MOROCCO – SINCE 1996 • BRAZIL – SINCE 1997 • TUNISIA – SINCE 1998 • EGYPS – SINCE 2000 • SOUTH AFRICA – SINCE 2002 • CAPE VERDE – SINCE 2005 • TURKEY – SINCE 2007 • CHINA – SINCE 2007 • INDIA – SINCE 2008 39
  40. 40. INDIA - SINCE 2008 (Plant) 1.2 Million MT / yearShree Digvijay cement Co. Ltd.- Sikka, Jamnagar (Gujarat) 40
  41. 41. Shree Digvijay Cement CompanyCOMPANY PROFILEShree Digvijay Cement Co Ltd., established on November 6, 1949 at Sikka –Jamnagar and one of the pioneers in the Cement business, is a flagship company ofthe Cimpor Group. Cimpor acquired management control of the company in the year2008.Its basket of products includes special cements like Oil Well Cement, SulphateResisting Portland Cement and Railway Sleeper Manufacturing Cement in addition toother varieties of Ordinary Portland Cement etc. It has a fully computer controlledplant and has a production capacity of 1.30 million tones per annum.Well connected by Road, Rail, Air, and Sea, Digvijay has its own port. Digvijay‘sprolific experience in the domestic and international markets is now further honedwith the Cimpor Group‘s management skills and technology.The company‘s brand ‗Kamal Cement‘ is a well-known name in the cement industry.They have a significant market share in Gujarat and internationally in SAARCcountries, Middle East and East Africa.The company backed by its prolific experience, management skills and commitmentalong with state of the art technology makes its products presence in the internationalbusiness and quest to meet the requirement of discerning customers and a concreteambition to build a stronger globe.The company had successfully established its presence by exporting varieties ofcement & cement clinker to the following countries: UAE, Somalia ,Yemen,Bangladesh , Qatar, Srilanka, Iraq, Kuwait, Behrin, Philippines and other SAARCand African countries 41
  42. 42. Product range of the company includes: Ordinary Portland Cement 53 grade (OPC) as per BIS / BS / ASTM / SLS standards Oridinary Portland Cement 43 grade (OPC) Sulphate Resisting Portland Cement (SRPC) Railway Sleeper Manufacturing Cement (53-S Grade OPC) Oil Well Cement Class G Grade HSR (as per API specifications 10A) Portland Pozzolana CementMilestones: 1944 Digvijay traces its origin on 6th November by Bangurs. 1947 Started commercial production with 1 lakh M.T capacity per annum. 1953 First expansion making total capacity to 2 lac M.T per annuam. 1954 Construction of Aerial Ropeway, a unique system in the country for transportation of sea-sand from jetty to plant. 1956 Second expansion to increase the production capacity to 4 lac M.T per annum. 1957 Ropeway put into operation. 1958 West Cost Paper Mills Ltd commissioned with financial help of Digvijay. 1959 Clinker grinding plant commissioned at Mumbai known as ―Bombay Cement Mill‖ with annual capacity of 1 lac M.T. 1960 Asbestos Plant installed at Ahmedabad known as Asbestos Product Division. 1964 Ropeway system installed for transportation of clinker and cement directly to Ship from factory. 1966 Commissioned Cement grinding unit at Ahmedabad known as Ahmedabad Cement Mill. 42
  43. 43. 1967 Enhancement of cement production capacity to 6 lac M.T per annum. 1979 Beawar cement project initiated with financial help of Digvijay. 1982 Amalgamation of Hastings Jute Mill, Shreeram Silk Mill and Relaxon. 1984 Conversion of metre gauge line into broad gauge line. 1985 Dry process plant commissioned Lockout at Bombay Cement Mill. 1989 Digvijay become Sick and registered with BIFR first time. 1992 Digvijay came out of BIFR through profit and Equity infusion. 1994 Demerger of Fibre Product Division, Ahmedabd Cement Mill, Shreeram Silk Mill and Relaxon from Digvijay. 1998 Hastings Jute Mills sold. Grasim acquired management control of Digvijay Digvijay became Sick second time. 2000 Installation of captive power plant (DG Sets) and upgradation of Cement Mill to reduce cost. 2001 Digvijay was badly affected in earthquake. 2002 Downsizing of manpower through VRS. 2007 Digvijay came out from BIFR. 2008 Cimpor acquired management control of Digvijay.Awards & AchievementsNational Awards won by Digvijay: 1982- National Productivity Award 1996- National productivity Award 2003- National Energy Conservation Award 2004- National Energy Conservation Award 2005- National Energy Conservation Award - Certificate of Merit 2006-National Energy Conservation AwardOther Awards / Certifications 1989- American Petroleum Institute Certification 43
  44. 44. 1996- ISO - 9002 Accreditation 2002- Bharat Shells Lubricant Excellency Award 2003- Century International Quality Era Award in Gold Category 2005- ISO 14001 (Environment Management System) Certification 2005 OHSAS 18001 CertificationAwards / Certificates on Export Front 1994- Recognition as Export House 1995 Golden Jubilee Year 1995- Recognition of Merit for Meritorious Export Performance 1997- Certificate of Merit for Export Achievement 2005- Recognition as Two-star Export House by Ministry of Commerce, Govt. of India 2005- CAPEXIL Special Export Award 2006 CAPEXIL Special Export Award ManagementO Name Designation1 Leonard D Casta Chairman2 Alvaro Joao Serra Nazare Director3 Robert Pavrey Director4 Napoleon De La Colina Director5 Luls Filipe Sequeira Martins Director6 Chief Executive Officer & Whole P A Nair Time Director 44
  45. 45. COMPETITORSUltratech CementUltraTech Cement Limited has an annual capacity of 52 million tonnes. Itmanufactures and markets Ordinary Portland Cement, Portland Blast Furnace SlagCement and Portland Pozzalana Cement. It also manufactures ready mix concrete(RMC).The company has 11 integrated plants, one white cement plant, one clinkerisationplant in UAE, 15 grinding units – 11 in India, 2 in UAE, one in Bahrain andBangladesh each and and five terminals — four in India and one in Sri Lanka. UltraTech Cement is the country‘s largest exporter of cement clinker. The export markets span countries around the Indian Ocean, Africa, Europe and the Middle East.UltraTechs subsidiaries are Dakshin Cements Limited, Harish Cements Limited,UltraTech Ceylinco (P) Limited and UltraTech Cement Middle East InvestmentsLimited 45
  46. 46. Ambuja CementAmbuja Cements Ltd. (ACL) is one of the leading cement manufacturing companiesin India. The Company, initially called Gujarat Ambuja Cements Ltd., was foundedby Narotam Sekhsaria in 1983 with a partner, Suresh Neotia. Sekhsaria‘s businessacumen and leadership skills put the company on a fast track to growth. TheCompany commenced cement production in 1986. The global cement major Holcimacquired management control of ACL in 2006. Holcim today holds little over 46%equity in ACL. The Company is currently known as Ambuja Cements Ltd.ACL has grown dynamically over the past decade. Its current cement capacity isabout 25 million tonnes. The Company has five integrated cement manufacturingplants and eight cement grinding units across the country. ACL enjoys a reputation ofbeing one of the most efficient cement manufacturers in the world. Its environmentprotection measures are on par with the finest in the country. It is one of the mostprofitable and innovative cement companies in India. ACL is the first Indian cementmanufacturers to build a captive port with three terminals along the country‘s westerncoastline to facilitate timely, cost effective and environmentally cleaner shipments ofbulk cement to its customers. The Company has its own fleet of ships. ACL has alsopioneered the development of the multiple bio-mass co-fired technology forgenerating greener power in its captive plants.ACL has always met tough challenges and seized the opportunities that have come itsway. It has nurtured the same spirit of enterprise and search for cutting-edgetechnology with which it started. It thus continues to be the driving force and in manyways a benchmark for the cement industry in India. 46
  47. 47. Jaypee CementThe Jaypee group is the 3rd largest cementproducer in the country. The groups cementfacilities are located in the Satna Cluster (U.P),which has one of the highest cement productiongrowth rates in India.The group produces special blend of PortlandPozzolana Cement under the brand name ‗Jaypee Cement‘ (PPC). Its CementDivision currently operates modern, computerized process control cement plants withan aggregate capacity of 21.3 MTPA. The company is in the midst of capacityexpansion of its cement business in Northern, Southern, Central, Eastern and Westernparts of the country and is slated to be 37.55 MTPA cement producer by 2012 withCaptive Thermal Power Plants totaling 702MW.All the 156 cement dumps are networked using State-of-the-art TDM/TDMA VSATsalong with a dedicated hub to provide 24x7 connectivity between the plants and allthe 156 points of cement distribution in order to ensure ―track – the – truck‖ initiativeand provide seamless integration. This initiative is the first of its kind in the cementindustry in India.In the near future, the group plans to expand its cement capacities via acquisition andgreenfield additions to maximize economies of scale and build on vision to focus onlarge size plants from inception.The Group is committed towards the safety and health of employees and the public.Our motto is Work For Safe, Healthy, Clean & Green Environment. 47
  48. 48. THEORETICAL BACKGROUNDPromotion is persuasive communication. It is a highly visible element in themarketing mix. It tells the target customer product, price, and place. It tells alsoknown as marketing communication. Promotion consist of activities that facilityexchanges with target customers through persuasive communication to stimulatedemand. According to Professor Philip kotler:- ―Promotion includes all theactivities the company undertakes to communicate and promote its products to thetarget market.‖ In modern marketing the question is not whether to promote but ratherwhat to say, to whom and how often. A good product, an attractive price and anaccessible distribution must be supported by an effective promotion to satisfycustomer needs. Promotion activity include advertising, sales promotion, publicrelation, and direct marketing. Promotion can also be viewed as the management ofthe customer buying process of pre-purchase, purchase and post purchase.FUNCTION OF PROMOTIONPromotion is a tool to influence target customer and to face competition. It performsfour functions:- Information Persuasion Reminding ReinforcingPROMOTION MIX The promotion mix is the combination of advertising, publicrelations, sales promotion, personal selling and direct marketing tools that helpachieve marketing objective1) ADVERTISINGAdvertising in any paid form of nonpersonal communication by an identified sponsorto promote product. 48
  49. 49. 2) PUBLIC RELATIONIt refers to programmes designed to promote or protect a company image andproducts. Publicity is any unpaid form of communication through media about anorganization, its policies and products.3) PERSONAL SELLINGPersonal selling is personal communication with customers to persuade them to buyproducts. It permits interaction and relationship building. Sales persons providefeedback about the market, competitors and customers.4) DIRECT MARKETING: - It is persuasion by manufacturer to specific customers.The tools of direct marketing are:1.Face to face selling2.Mail3.Catalogue marketing4.Telephone 5.E-mail5) SALES PROMOTIONS: - Sales promotion has been increasing in popularity as atool. Marketers are using it aggressively. Sales promotion refers to short termincentives to stimulate demand. It is used to create a stronger and quicker purchaseresponse. It can be directed at consumers, middleman and sales personnel. Itsupplements advertising and facilitates personal selling.According to Professor William J. Stanton:- ―Sales promotion refers to demand –stimulating devices designed to supplement advertising and facilitate personal selling.According to professor Philip kotler:- ―Sales promotion consists of diversecollection of incentives tools, mostly short term, designed to stimulate quicker and orgreater purchase of particular product /services by consumer or trade.NATURE OF SALES PROMOTION:1. It is short term2. It provides incentives3. It aims at quicker response4. It is directed at target audience 49
  50. 50. OBJECTIVE OF SALES PROMOTION1. Objective for consumer promotion:(a) Encourage greater purchase volume(b) Attract new customer(c) Introduce new products2. Objective for trade promotion:(a) Carry and push new item(b) Increase reseller‘s inventories(c) Attract new channel members(d) Offset competitive promotion(e) Better store display3. Objective for sales force promotion(a) Motivate sales force(b) Support new productMETHOD OF SALES PROMOTION Sales promotion methods differ according tothe target audience. They can be directed at consumer promotion, trade promotion,and sales force promotionConsumer promotion methodFree sample CouponsRebatesPremium Price off ContestsDisplay/DemonstrationTrade promotion methodsFree goodsAllowance 50
  51. 51. Prices-off SalesContestGift itemsCredit facilitiesTrade showSales contestsTrade shows conventionsGift itemsPromotional kits Marketing mix Figure 24 P‘s of marketing mix comprises of: Product Price Place Promotion 51
  52. 52. How to Establish a Promotional MixYou drive sales by promoting the benefits of your companys goods or services topools of potential buyers. The ways you promote your organization will largelydetermine whether you successfully plant the right messages in the minds of yourtarget audience. This module explains how you can establish a promotional mix bestsuited to your companys needs and resources. Determine Your Target Market Determine Your Objectives Design Your Message Select Your Promotional Channels Determine Your Budget Determine Your Promotional Mix Measure the Results and AdjustElements of promotion mixA promotional mix is an allocation of resources among five primary elements:1. Advertising2. Public relations or publicity3. Sales promotion4. Direct marketing5. Personal selling 52
  53. 53. Strategies of promotion mixPush & Pull Strategies - Figure 4Communication by manufacturer is not only directed towards consumers to createdemand. A push strategy is where the manufacturer concentrates some of theirmarketing effort on promoting their product to retailers to convince them to stock theproduct. A combination of promotional mix strategies are used at this stage aimed atthe retailer including personal selling, and direct mail. The product is pushed onto theretailer, hence the name. A pull strategy is based around the manufacturer promotingtheir product amongst the target market to create demand. Consumers pull the productthrough the distribution channel forcing the wholesaler and retailer to stock it, hencethe name pull strategy. Organizations tend to use both push and pull strategies tocreate demand from retailers and consumers. 53
  54. 54. Chapter 4Pest analysis, Swot analysis and Five force analysis 54
  55. 55. PEST ANALYSIS OF INDIAN CEMENT INDUSTRY Figure 5The PEST Analysis is a framework that you can use to scan the external macro-environmentin which a firm operates. PEST is an acronym for the following factors: Political factors Economic factors Social factors, and Technological factors 55
  56. 56. In 2002 the world production of hydraulic cement was 1,800 million metric tons. Thetop three producers were China with 704, India with 100, and the United States with91 million metric tons for a co mbined total of about half the world total by theworlds three most populated states.POLITICALThe price of cement is primarily controlled by the coal rates, power tariffs, railwaytariffs, freight, royalty and cess on limestone. Interestingly, government controls all ofthese prices. Government is also one of the biggest consumers of the cement in thecountry. Most state governments, in order to attract investments in their respectivestates, offer fiscal incentives in the form of sales tax exemptions/deferrals. States likeHaryana offer a freeze on power tariff for5 years, while Gujarat offers exemptionfrom electric duty. (India Infoline Ltd n.d.)ECONOMICCurrently, the industry is on the boom, with a lot of government infrastructure andhousing projects under construction. In spite of seeing a fall during 2008-09, theexport segment of the industry is expected to grow again on account of variousinfrastructure projects that are being taken up all over the world and numerousutstanding cement plants coming up in near future in the countrySOCIALUsually, the cement industry in India consists of both the organized sector and theunorganized sector. Organized sector comprises of the well-known cementmanufacturing companies while the main players of the unorganized sector are theregional and local cement-producing units in various states across the state. Indianconsumers prefer buying branded cement like ULTRATECH, JAYPEE CEMENT, 56
  57. 57. AMBUJA CEMENT etc. It has been seen in the past, as well, that mini cement plantswith low brand value and image are not able to survive against the cement giants.With a population of more than 100 billion people, it is expected that cement industrywill create another 25 lakhs jobs in the next 4-5 years.TECHNOLOGYFrom mining to production the entire process depends on technology. TheGovernment of Indiaplans to study and possibly acquire new technologies from thecement industry of Japan. The government is discussing technology transfer in thefield of energy conservation and environment protection to help improve efficiency ofthe Indian cement industry.Cement industry has made tremendous strides intechnological up-gradation and assimilation of latest technology. At present 93% ofthe total capacity in the industry is based on modern and environment-friendly dryprocess technology. 57
  58. 58. SWOT ANALYSIS Figure 6 To plan marketing and management strategies for businesses, it is important to perform a situations analysis. One such analysis, a SWOT analysis, examines "strengths, weaknesses, opportunities and threats" within a particular business or field. The cement industry is an example of a field for which a SWOT analysis would enhance marketing and management strategies.1. Strengthso The cement industry has much strength to be considered. Cement is, literally, the building block of the construction industry. Almost every building constructed relies on cement for its foundation. The cement business is a $10 billion industry, measured by annual cement shipments. There is also a strong reputation behind the cement industry. Cement is a solid material and consumers rarely have complaints about the product. Regional distribution plants have also made cement widely available to any type of buyer. Strengths of shree Digvijay cement 58
  59. 59. o Shree Digvijay Cement has good loyal stockiesto Management of MNC that is Cimpor group is an add advantage to the company.o Quality and other services like free sample testing for the buyers could be considered as strengths of the company. Weaknesseso The cement industry is not without its drawbacks. The cement industry relies on construction jobs to create a profit. But the cement industry heavily relies on weather. About two-thirds of cement production takes place between May and October. Cement producers often use the winter months to produce and stockpile cement, to meet demand. Another weakness is the cost of transport; the cost of transporting cement is high and this keeps cement from being profitable over long distances. In other words, shipping cement costs more than the profit from selling it. For shree digvijay cement drawbacks would beo Limestone is available little far from the plant which ultimately results into higher input cost.o No brand awareness in the Ahmedabad region.o Comparetively less dealers in Ahmedabad region. Opportunitieso The cement industries have opportunities as well. One such opportunity is the cement industrys efficiency. The cement industry has recently streamlined its production efforts, using dry manufacturing instead of wet, which is heavier and more time- consuming. The cement industry has also invested about $6 billion in expansion efforts to meet unmet cement needs. Projections show that by 2012, the cement industry will have 25 percent more production capabilities. 59
  60. 60. Threatso The nature of the economy has uncovered a number of threats to the cement industry. The cement industry greatly relies on construction. The current economy has lessened the number of construction jobs, which in turn hurts the cement industry. The cement industry controls the majority of the United States market, but not all of it. About 11.5 metric tons of cement are imported annually to support the unmet need. If other countries can produce and ship cement for a reduced price, the U.S. cement industry is in danger. The U.S. government is also attempting to regulate the cement industrys waste. The Environmental Protection Agency has introduced regulations for the cement industry to cut down emissions Threats for Shree Digvijay cement.o New capacity expansion like JP, ABC cement may hurt the market share.o Other brands like Ambuja and Ultratech have an extremely high percentage of brand loyalty, something that was evident from the survey that was conducted.o A huge amount of small players are grabbing a large chunk of lower income cement base. 60
  61. 61. PORTER’S 5-FORCE MODEL FOR CEMENT INDUSTRYTHREAT FOR ENTRANTS:The high capital costs acts as a major entry barrier for the entry of new players. Thehigh freight costs make it difficult to import cement. Cement being a high volume lowvalue commodity results in high freight costs, which makes cement importseconomically unfeasible. Domestic Cement industry is highly insulated from globalcement markets. With GoI intervention, making cement duty free, cement is beingimported from neighboring countries. However, due to logistics issues and lack ofport handling capabilities, imports of cement will remain negligible and do not pose athreat to domestic industry. 61
  62. 62. BARGAINING POWER OF SUPPLIERS:The major inputs are coal and power. The Prices of both coal and power aredetermined by the government. To mitigate the high costs of power the cementplayers have set up captive power plants.COMPETITIVE RIVALRY BETWEEN EXISTING PLAYERS:Previously the rivalry was strong among the players, as the industry was notconsolidated. During the last few years the industry has become more consolidatedwith the Top 3 players having a combined market share of 49 percent in 2008-09 ascompared to 32 percent in 2007-2008.BARGAINING POWER OF BUYERS:Retail sales constitute about 80 percent of the total sales and the rest is institutionalsales. The retail buyers don‘t have any bargaining power while the institutional buyersget a discount of 5 to 10 percent as they buy cement in bulk.THREAT OF SUBSTITUTES:There are no good substitutes for cement. 62
  63. 63. Chapter 5Data Analysis and interpretation 63
  64. 64. Data Analysis and interpretation1) No. of years in Business Less than 5 years 6-10 years 11-15 years More than 15 years Responses Less than 5 years 6-10 years 11-15 years More than 15 years 13 28 36 27 No. of years in business Less than 5 years 6-10 years 11-15 years More than 15 years 13% 26% 27% 35%The above chart shows that most of the dealers who all are suryed have dealership ofvarious brands since long time because 35% and 26% dealers are in the business since11-15 years and more than 15 years respectively. 64
  65. 65. 2) What are the grades you dealing with ? 53 Grade Cement PPC Grade Cement Others All Grade Cement Responses 53 grade cement 60% PPC grade cement 25% OPC grade cement 11% All grades cement 4% What are the grades you dealing with ? 53 grade cement PPC grade cement OPC grade cement All grade cements 4% 11% 25% 60%As it can be seen that 60% of total dealers that is 60 dealers sell 53 grade cement and25% ofdealers also sell PPC grade cement where as other grades such as oil wellcement stands at only 11%. 65
  66. 66. 3) Rank the following brands according to your preference ? Ultratech Ambuja Jaypee Hathi Sidhee Kamal Sanghi Ultratech Ranks 1 2 3 4 5 6 7Responses 37 19 32 6 5 0 1 Ultratech Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank7 1% 0% 5% 6% 37% 32% 19%The above chart shows 37% dealers ranked Ultratech as a number one brand. Thisclearly shows that the company has good brand image in the market.Only 1% dealershave given it the lowest rank. 66
  67. 67. Ambuja Ranks 1 2 3 4 5 6 7Responses 20 53 17 9 0 1 0 Ambuja Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 0% 1% 0% 9% 20% 17% 53%After Ultratech, Dealers preferred Ambuja as 53% dealers ranked it at secondposition, whereas 20 % ranked it number one brand which clearly shows that bothUltratech and Ambuja have cut throat competition in terms of brand image. 67
  68. 68. Jaypee Ranks 1 2 3 4 5 6 7Responses 16 6 42 21 11 3 1 Jaypee Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 3% 1% 11% 16% 6% 21% 42%Out of total dealers 42% ranked Jaypee at 3rd position and 16 % dealers ranked itnumber one brand which clearly shows that Jaypee though being only 2 years old inthe market, has a considerably good brand image. 68
  69. 69. Hathi Ranks 1 2 3 4 5 6 7Responses 7 5 6 43 25 5 9 Hathi Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Arank 7 9% 7% 5% 5% 6% 25% 43%Most of the dealers that is 43% of total 100 dealers ranked Hathi at 4th position and25% ranked it at 5th positon, therefore I can say that Hathi has not that good brandimage but people more or less are aware about the brand. 69
  70. 70. Kamal Ranks 1 2 3 4 5 6 7Responses 7 4 2 6 8 50 23 Kamal Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank7 4% 7% 2% 23% 6% 8% 50%The above chart clearly shows that comparatively kamal is not that much popular inthe ahemdabad region. Kamal as a brand stands at 6th position as highest that is 50%dealers have ranked it at 6th postion. This shows that not much dealers are awareabout the brand. Only 7 % dealers ranked it at number one position and that may bebecause they were dealers of kamal cement. 70
  71. 71. Sanghi Ranks 1 2 3 4 5 6 7Responses 8 6 2 2 6 16 60 Sanghi Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 8% 2% 6% 2% 6% 60% 16%Sanghi is the least preffered brand of all brands as it stands at 7th rank with highestnumber of dealers that is 60% of all ranked it at the last position. 71
  72. 72. 4) How much quantity of cement you sell per month? 10-50 tones 50-100 tones 100-150 tones More than 150 tones Responses Ultratech 80 tones Ambuja 100 tones Jaypee 50 tones Hathi 60 tones Sidhee 60 tones Kamal 40 tones Sanghi 30 tones 100 90 80 70 60 50 40 30 sales 20 10 0From all the market players Ambuja is having the largest share in the sales followedby ultratech which is sells 80 tones on average per month, Hathi and Sidhee almostsells same per month where as kamal and Sanghi have low sales. 72
  73. 73. 73
  74. 74. 5) Reason for selling particular brand of cement ? Customer Acceptance/Brand Image Pricing Quality Responses Brand Image Quality Pricing Ultratech 8 3 1 Ambuja 7 5 1 Jaypee 5 4 2 Hathi 4 5 3 sidhee 4 5 3 Sanghi 3 4 5 Binani 4 3 5 Kamal 1 5 6 9 8 Brand Image 7 Quality 6 5 Pricing 4 3 2 1 0Ambuja as a brand is very famous in the market almost 90% of the dealers sellambuja because of its brand image,Quality being the next important reason. Ultratech is just behind ambuja in terms ofboth brand image and quality. More over according to dealers customer is more 74
  75. 75. interested in price rather than quality so dealers of Jaypee, Kamal, Hathi and Sidheeconsiders price as a reason for customer availability.6) If Credit, how many days ? Days Responses Days Ultratech 0 Ambuja 5 Jaypee 2 Hathi 3 Sidhee 3 Sanghi 15 Kamal 7 Binani 3 Binani Kamal Sanghi Sidhee Hathi Days Jaypee Ambuja Ultratech 0 2 4 6 8 10 12 14 16Ultratech do no give credit at all. They need payments in advance. Whereas otherbrands such as Sanghi, Kamal, Ambuja give credit of 15,7,5 respectively 75
  76. 76. 7) Reason for selling particular brand of cement ? Customer Acceptance/Brand Image Quality Pricing Ultratech 7 6 5 4 Quality 3 Pricing Transport 2 1 0 Extremly Satisfied Moderately Dissatisfied Extremely satisfied satisfied satisfiedThe maximum numbers of dealers are satisfied with the quality and transport facilityof ultratech cement, where as dealers who are dissatisfied with the price is also morein numbers. 76
  77. 77. Ambuja Quality Pricing Transport Extremely satisfied 3 2 2 Satisfied 4 3 2 Moderately 4 4 3 Dissatisfied 1 2 3 Extremely dissatisfied 0 1 2 4.5 4 3.5 3 2.5 Quality 2 Pricing 1.5 Transport 1 0.5 0 Extremely Satisfied Moderately Dissatisfied Extremely satisfied dissatisfiedOut of total 14 dealers of Ambuja 3 said that they are extremely satisfied with thequality of cement and 4 said that they are satisfied which shows that almost 50%dealers are satisfied with the quality of cement. Ambuja could be considered numberone brand in terms of quality as not even a single dealer is extremely dissatisfied withthe quality of cement. Overall if we see Ambuja‘s dealers are satisfied with all thefactors quality,pricing and transport. 77
  78. 78. Jaypee Quality Pricing Transport Extremely satisfied 2 3 2 Satisfied 3 4 3 Moderately satisfied 4 2 3 Dissatisfied 2 2 2 Extremely dissatisfied 1 1 2 4.5 4 3.5 3 2.5 Quality 2 Pricing 1.5 Transport 1 0.5 0 Extremely Satisfied Moderately Dissatisfied Extremely satisfied satisfied dissatisfiedHere, the chart shows that dealers are more satisfied with the pricing than otherfactors. Overall Jaypee provides good transport facility and good quality of cement. 78
  79. 79. Hathi Quality Pricing Transport Extremely satisfied 3 2 2 Satisfied 4 3 4 Moderately satisfied 2 4 4 Dissatisfied 2 3 1 Extremely dissatisfied 1 2 1 4.5 4 3.5 3 2.5 Quality 2 Pricing 1.5 Transport 1 0.5 0 Extremely Satisfied Moderately Dissatisfied Extremely satisfied satisfied dissatisfiedIn case of hathi dealers are satisfied with the quality and transport as out f 12 dealers 4said that they are satisfied both with the quality of cement and transport or availabilityof the cement. 79
  80. 80. Sanghi Column1 Quality Pricing Transport Extremelysatisfied 1 1 2 satisfied 3 3 2 Moderately satisfied 4 5 3 dissatisfied 3 2 3 Extremely dissatisfied 1 1 2 6 5 4 3 2 Quality Pricing 1 Transport 0Dealers are more satisfied with the price at which the company offers the cement thanother factors. There are dealers who are extremely dissatisfied with the transport andavailability of the cement at Sanghi 80
  81. 81. Kamal Quality Pricing Transport Extremely satisfied 2 3 2 Satisfied 3 4 4 Moderately satisfied 4 3 3 Dissatisfied 2 2 1 Extremely satisfied 1 1 2 4.5 4 3.5 3 2.5 Quality 2 Pricing 1.5 Transport 1 0.5 0 Extremely Satisfied Moderately Dissatisfied Extremely satisfied satisfied satisfiedKamal ‗s dealers are overall satisfied with the pricing and transport out of total of 12,4 dealers are satisfied with transport and 4 satisfied with the pricing policy. As far asquality is considered only 2 out of 12 are extremely satisfied. The graph clearly showswhere does the brand stands in terms of quality, transport and pricing policy. 81

×