A project report on customer satisfaction and market potential of ambuja cements

1. A PROJECT REPORT
On
CUSTOMER SATISFACTION AND
MARKET POTENTIAL
OF
AMBUJA CEMENTS
PREPARED BY:
NEW DELHI

2. CONTENTS
Chapter-1
a) Introduction about the cement industry
Chapter-2
Introduction to the organization
Background of problem task
Rationale
Scope of the project
Chapter-3
Objective of the study
 Main objective
 Specific objective
Chapter-4
Methodology
 Data collection method
 Research methodology
Swot analysis
Pest analyasis
Chapter-5
Data analysis
Chapter-6
Limitations of the study
Chapter-7
Findings
Chapter-8
Recommendations
Chapter-9
Bibliography
Chapter-10
Sample questionnaires

3. OVERVIEW OF THE CEMENT INDUSTRY
The Indian Cement industry is the second largest cement producer in the world,
with an installed capacity of 144 million tonnes. The industry has undergone
rapid technological upgradation and vibrant growth during the last two decades,
and some of the plants can be compared in every respect with the best operating
plants in the world. The industry is highly energy intensive and the energy bill in
some of the plants is as high as 60% of cement manufacturing cost. Although the
newer plants are equipped with the latest state-of-the-art equipment, there exists
substantial scope for reduction in energy consumption in many of the older plants
adopting various energy conservation measures.
The Indian cement industry is a mixture of mini and large capacity cement plants,
ranging in unit capacity per kiln as low as 10 tpd to as high as 7500 tpd. Majority
of the production of cement in the country (94% ) is by large plants, which are
defined as plants having capacity of more than 600 tpd. At present there are 124
large rotary kiln plants in the country. The Ordinary Portland Cement (OPC)
enjoys the major share (56%) of the total cement production in India followed by
Portland Pozzolana Cement (PPC) and Portland Slag Cement (PSC). A positive
trend towards the increased use of blended cement can be seen with the share
of blended cement increasing to 43%. There is regional imbalance in cement
production in India due to the limitations posed by raw material and fuel sources.
Most of the cements plants in India are located in proximity to the raw material

4. sources, exploiting the natural resources to the full extent. The southern region is
the most cement rich region while other regions have almost same
cement production capacity. The Indian cement industry is about 90 years old
and its main sources of energy are thermal and electrical energy. The thermal
energy is generally obtained from coal, and the electrical energy is obtained
either from grid or captive power plants of the individual manufacturing units.
2. Salient features of Indian cement industry
• Indian cement industry is the second largest in the world with an installed
capacity of 135 MTPA. It accounts for nearly 6% of the world production.
· There are 124 large plants and around 365 mini plants. The industry presents a
mixed picture with many new plants that employ state-of-the-art dry process
technology and a few old wet process plants having wet process kilns.
· Production from large plants (with capacity above 1 MTPA) account for 85% of
the total production.
· The cement industry has achieved significant progress in terms of reducing the
overall energy intensity. Dry process plants that the weighted average thermal
energy consumption was 734 kCal/kg clinker, and weighted average electrical
energy consumption was 89 kWh/tonne of cement. The best energy consumption
are 692 kCal/kg. clinker and 66 kWh/ton of cement.
3. Quantitative details:
The energy intensity of the all the dry process plants (cost of energy as
percentage of total production cost of packed cement) varies from 29 to 61%.

5. This is observed to vary with the vintage of the plant, the technology employed
by the plants and the type of cement produced.
Specific thermal and electrical energy consumption for the plants ranges
between 692 – 879 kCal/kg. of clinker and 66 – 127 kWh/ton of cement produced
(product mix) respectively. The specific electrical energy also includes the energy
consumed in packing, plant utilities and plant lighting. The reasons for wide
range in specific energy consumption can be mainly attributed to the differing
equipment configuration employed in different sections of the plants .
Total production
The cement industry comprises of 125 large cement plants with an installed
capacity of 148.28 million tonnes and more than 300 mini cement plants with an
estimated capacity of 11.10 million tonnes perannum.
The Cement Corporation of India, which is a Central Public Sector Undertaking,
has 10 units. There are 10 large cement plants owned by various State
Governments. The total installed capacity in the country as a whole is 159.38
million tonnes. Actual cement production in 2002-03 was 116.35 million tonnes
as against a production of 106.90 million tonnes in 2001-02, registering a growth
rate of 8.84%. Major players in cement production are Ambuja cement,
Aditya Cement, J K Cement and L & T cement.
Apart from meeting the entire domestic demand, the industry is also exporting
cement and clinker. The export of cement during 2001-02 and 2003-04 was 5.14
million tonnes and 6.92 million tonnes respectively. Export during April-May,

6. 2003 was 1.35 million tonnes. Major exporters were Gujarat Ambuja Cements
Ltd. and L&T Ltd.
The Planning Commission for the formulation of X Five Year Plan constituted a
'Working Group on Cement Industry' for the development of cement industry. The
Working Group has identified following thrust areas for improving demand for
cement;
i. Further push to housing development programmes;
ii. Promotion of concrete Highways and roads; and
iii. Use of ready-mix concrete in large infrastructure projects.
Further, in order to improve global competitiveness of the Indian Cement
Industry, the Department of Industrial Policy & Promotion commissioned a study
on the global competitiveness of the Indian Industry through an organization of
international repute, viz.
Table given here is representing the cement industry growth through five year
plans……
Five years plan Years Capacity (mt) Production (mt)
Pre plan 1950-51 3.28 2.20
2nd plan 1951-56 5.02 4.60
3rd plan 1956-61 9.30 7.97
4rth plan 1961-66 12.00 10.97
5th plan 1969-74 19.76 14.66
6th plan 1974-79 22.58 19.42
7th plan 1980-85 42.40 30.13
8th plan 1985-90 61.31 45.41
9th plan 1992-97 105.26 76.22
10th pl 1997-02 146.13 108.40

7. Cement industry has been decontrolled from price and distribution on 1st
March 1989 and de-licensed on 25th July 1991. However, the performance of the
industry and prices of cement are monitored regularly. Being a key infrastructure
industry, the constraints faced by the industry are reviewed in the Infrastructure
Coordination Committee meetings held in the Cabinet Secretariat under the
Chairmanship of Secretary (Coordination). The Committee on Infrastructure also
reviews its performance.
Technological change
Continuous technological upgrading and assimilation of latest technology has
been going on in the cement industry. Presently 93 per cent of the total capacity
in the industry is based on modern and environment-friendly dry process
technology and only 7 per cent of the capacity is based on old wet and semi-dry
process technology. There is tremendous scope for waste heat recovery in
cement plants and thereby reduction in emission level. One project for co-
generation of power utilizing waste heat in an Indian cement plant is being
implemented with Japanese assistance under Green Aid Plan. The induction of
advanced technology has helped the industry immensely to conserve energy and
fuel and to save materials substantially. India is also producing different varieties
of cement like Ordinary Portland Cement (OPC), Portland Pozzolana Cement
(PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid
Hardening Portland Cement, Sulphate Resisting Portland Cement, White Cement
etc. Production of these varieties of cement conform to the BIS Specifications.

8. Also, some cement plants have set up dedicated jetties for promoting bulk
transportation and export.
State- wise major cement plants
state No.of plants Capacity mt
Andhra pradesh 24 23.96
Assam 1 0.20
Bihar 1 1.00
Chhatisgarh 9 10.36
Delhi 1 0.50
Gujrat 12 17.12
Haryana 1 0.17
Himachal pradesh 4 4.06
J and k 1 0.20
Jharkhand 5 4.57
Karnatka 9 10.07
Kerala 1 0.42
Madhya pradesh 12 16.39
Maharashtra 8 10.95
Meghyalaya 1 0.20
Orrisa 3 2.76
Punjab 3 2.84
Rajasthan 14 17.95
Tamil nadu 13 14.79
Uttar pradesh 7 5.07
West Bengal 4 3.13
Total 134 146.71

9. Current status of Indian cement industry
The Indian cement industry has grown remarkably in the last two decades to
emerge as the second largest in the world after china. In terms of technology ,
quality and productivity, India cement industry is remarkably is undeniably at the
top. Today, the country has 134 major plants with an installed capacity of 146.71
million tones. There are also 60 surviving mini and tiny units with a capacity of
6.3 million tones . The combined capacity of the cement industry is 153.01
million tones . in recent years , the production of blended cement has increased
in India as more and more companies shifting their emphasis from opc to
blended cement.
With increased cement production, the cement supplies have increased
substantially resulting into depressed prices, with producers are getting
inadequate returns on their investment, affecting the bottom lines of several
companies.
Today, the Indian cement industry is passing through are alignment and
consolidation . Multi nationals have a strong entry in the cement market and are
trying to get their presence by acquisitions and mergers.
The per capita consumption of cement in India, which currently is very low
at 99 kg, has huge scope of growth . according to industry sources with the
intiative taken by the government on the infrastructure , particularly the north
and south corridor particularly known as “ golden qualidateral”… the
working group on the cement industry constituted by the planning commission

11. Introduction of Jk cement limited
J.K. Cement is an affiliate of the J.K. Organization, which was founded by Lala
Kamlapat Singhania. The J.K. Organization is an association of industrial and
commercial companies and has operations in a broad number of industries.
Our cement operations commenced commercial production in May 1975 at our
first plant at Nimbahera in the state of Rajasthan. At Nimbahera, we started with
a single kiln with a production capacity of 0.3 million tons. We added a second
kiln in 1979 with production capacity of 0.42 million tons, and a third kiln in 1982
with a production capacity of 0.42 million tons. We added a precalciner with a
capacity of 0.4 million tons in 1988, which increased our capacity at Nimbahera
to 1.54 million tons. During the years 1998 through 2003, we continued to
implement modifications to each of our kilns, which increased our aggregate
capacity at Nimbahera to 2.8 million tons as of September 30, 2005.
We commissioned a second grey cement plant at our Mangrol plant in 2001, with
a production capacity of 0.75 million tons. As of September 30, 2005, we had an
aggregate production capacity of 3.55 million tons per annum of grey cement.
Our white cement plant was completed in 1984 with a capacity of 50,000 tons.
Our continuing modifications to the plant have increased its production capacity
to 300,000 tons as of September 30, 2005.
Today, J. K. Cement Ltd. is one of the largest cement manufacturers in Northern
India. We are also the second largest white cement manufacturer in India by
production capacity. While the grey cement is primarily sold in the northern India

12. market, the white cement enjoys demand in the export market including countries
like South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri Lanka, Kenya,
Tanzania, UAE and Nepal.
Our access to high quality limestone reserves that are suitable for production of
white cement provides us with a competitive advantage. Based on geological
surveys conducted by independent agencies on our mines between 1996 and
2001, our limestone reserves for both grey and white cement are expected to
meet our existing and planned limestone requirements of 4.0 MnTPA of grey
cement and 0.4 MnTPA of white cement, for approximately 40 years.
Backed by state-of-the-art technology and highly skilled manpower against the
backdrop of India’s infrastructural growth in an overdrive, we are upbeat about
the future. We are confident of contributing heavily in India’s journey of
development. We see a world of concrete ideas on the horizon.
Types of product of JK cement
Grey cement produced by us consists of OPC and PPC. There are also other
cements in the market that we do not produce, such as Portland slag cement, oil
well cement, sulphate resistant cement, rapid gardening cement, low alkali
cement, low heat cement and super finish cement.OPC has three grades that we
produce, that are differentiated by their compressive strengths, expressed in
mega pascals (“MPa”), as specified by the BIS.These grades are 53-grade OPC,
43-grade OPC and 33-grade OPC, with 53-grade OPC having the highest

13. compressive strength.The customer selects the grade of OPC based on the
intended application. Our most popular cement, by sales volume, is 43-grade
cement, with 53-grade cement being used in applications which require high
strength characteristics.
Ordinary Portland Cement
OPC is produced by inter-grinding cement clinker prepared in a rotary cement
kiln with gypsum. Each metric ton of OPC requires approximately 0.95 metric
tons of clinker and approximately 0.05 metric tons of gypsum. The range of
applications, the physical and chemical requirements specified by BIS and
strength of the three grades of OPC are discussed below:
53-grade OPC (IS:12269-1987): 53-grade OPC is a high strength cement.
According to the BIS requirements, 53-grade OPC must have a 28-day
compressive strength of no less than 53 MPa. For certain specialized products,
such as pre-stressed concrete and certain pre-cast concrete items requiring high
strength, 53-grade OPC is considered useful as it can produce high-grade
concrete at lower cement content levels. We produce 53-grade OPC by exposing
the clinker to the grinding process for longer period of time,whichresults in a
higher density and stronger cement. As the grinding process requires a
significant amount of power, finer grinding for the 53-grade OPC requires more
power and is therefore priced higher compared to lower grades of OPC.53-grade
OPC can be used for the following applications:

14. Portland Pozzolana Cement
We also manufacture PPC (IS:1489 (Part-1) – 1991) under the brand name J.K.
Super. PPC is also known as blended cement or silicate cement, and this
blended cement has become increasingly popular in the market in recent years.
Each ton of PPC requires approximately 0.75 tons of clinker, 0.05 tons of
gypsum and 0.20 tons of fly ash, a pozzolanic material that is a by-product of
thermal power plants. In the manufacture of PPC, a portion of the clinker is
replaced with fly ash. This enables the cement manufacturer to produce a higher
quantity of cement per ton of clinker. As a result, the cement manufacturer can
increase its production capacity by making a limited investment in grinding
capacity without a corresponding investment in earlier.stage production
equipment such as kilns.Further, the only cost incurred for fly ash is
transportation cost from the thermal power plants that generate it to the cement
manufacturing site, as fly ash is currently available free of cost. The use of fly ash
therefore significantly reduces the overall cost of production of cement.
The advantage of PPC is its low heat of hydration and corresponding resistance
to exposure to various environmental chemicals such as salt water. It is
particularly suitable for marine and hydraulic construction and other mass
concrete structures. This cement has durability that is equivalent to OPC and can
be used most of the applications where OPC is used. As PPC is generally sold at
a comparable price to OPC and the cost of production of PPC is comparatively
lower, PPC’s margins per ton are generally higher compared to OPC.

15. White cements
We manufacture white cement under the brand names J.K. White and Camel.
White cement is produced using a different quality of limestone and is
distinguished from grey cement by its white colour. Each ton of white cement
requires approximately 1.33 tons of limestone, 0.02 tons of gypsum and 0.2 tons
of additives including white clay, feldspar
and fluorspar.
White cement is typically used in three principal areas of application, as set forth
below:
• Flooring, for the manufacturing and laying of mosaic tiles and as tile fixing grout,
wall applications, such as decorative white cement paints and plain and spray
plasters; and
White cement is typically used in three principal areas of application, as set forth
below:
• Flooring, for the manufacturing and laying of mosaic tiles and as tile fixing grout,
wall applications, such as decorative white cement paints and plain and spray
plasters; and
Other specialized applications including glass fibre reinforced concrete, garden
furniture, lamp posts, as pointing for brick and stone works and as pre-cast
cladding panels.

16. We sell white cement primarily in the Indian market. We also export white cement
to a number of countries, including South Africa, Nigeria, Singapore, Bahrain,
Bangladesh, Sri Lanka, Kenya, Tanzania, United Arab Emirates and Nepal.
Plants of jk cements limited
We manufacture grey cement in two facilities located at Nimbahera and Mangrol
in the state of Rajasthan in Northern India. White cement is produced at our
facility at Gotan in the state of Rajasthan. Our plants have obtained many
accolades and recognition, the most noteworthy being : ISO-9001:2000 QMS
and ISO-14001:2004 EMS for the grey cement facility at Nimbahera and
ISO-9001:2000 QMS, ISO-14001:1998 EMS & OHSAS-18001:2005
Occupational Health and Safety for the white cement facility at Gotan. The
construction of our first most modern dry cement plant began in 1970 in
Nimbahera in Rajasthan.
The following table shows a breakdown of production of the Nimbahera, Mangrol
and Gotan cement facilities for the periods indicated:
PRODUCTION (IN METRIC TONS)
Six months ended
Fiscal 2003 Fiscal 2004 Fiscal 2005
September 30, 2005
2,323,283 2,272,760 2,414,196 1,256,942
Nimbahera

17. 570,464 718,572 912,419 493,211
Mangrol
200,149 215,538 224,481 99,343
Gotan
Nimbahera Unit (Grey Cement)
Commenced commercial production in 1975 with an initial capacity of 0.3
MnTPA. In the year 1979, second production line was added to enhance the
production capacity to 0.72 MnTPA. 1982 witnessed the incorporation of another
production line taking the production capacity to 1.14 MnTPA. In 1988 a pre-
calciner was installed and the production capacity touched 1.54 MnTPA.
Constant modernization and up-gradation was instrumental in bringing the plant
to its present capacity of 2.8 MnTPA.
Capacity utilization of around 90%
Can produce up to 3.1 MnTPA with production of silicate cement on capacity of
2.8 MnTPA
Recognition : ISO-9001:2000 QMS and ISO-14001:2004 EMS

18. Mangrol Unit (Grey Cement)
Commenced commercial production in Dec’2001 with a capacity of
0.75 MnTPA. Its close to Nimbahera plant (10kms away) – offers it
significant synergy benefits like assistance from technical &
commercial staff of Nimbahera Complex.
Additional Grinding facility of 0.25 MnTPA .

19. The production process
The production process for cement consists of drying, grinding and mixing
limestone and additives like bauxite and iron ore into a powder known as “raw
meal”. The raw meal is then heated and burned 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 Ordinary Portland Cement (“OPC”). Other forms of cement require
increased blending with other raw materials. Blending of clinker with other
materials helps impart key characteristics to cement, which eventuallygovern its
end use. 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 resulting in energy saving, whereas in the wet process the raw meal
is fed into the kiln in the form of slurry. There is also a semi-dry process, which
consumes more energy than the dry process but lesser than the wet process.
The basic steps involved in the production process is set out below:
Dry process
All J.K. Cement plants are dry process plants. Limestone is crushed to a uniform
and usable size, blended with certain additives (such as iron ore and bauxite)

20. and discharged on a vertical roller mill, where the raw materials are ground to
fine powder. An electrostatic precipitator dedusts the raw mill gases and collects
the raw meal for a series of further stages of blending. The homogenized raw
meal thus extracted is pumped to the top of a preheater by air lift pumps. In the
preheaters the material is heated to 750°C. Subsequently, the raw meal
undergoes a process of calcination in a precalcinator (in which the carbonates
present are reduced to oxides) and is then fed to the kiln. The remaining
calcination and clinkerization reactions are completed in the kiln where the
temperature is raised to between 1,450°C and 1,500°C. 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 Portland [Pozzolana] Cement (“PPC”),
clinker, gypsum and fly ash are used. In the production of Portland Blast Furnace
Stag Cement (“PSC”), granulated blast furnace slag from steel plants is added to
clinker.
Awards given to the JK White cements limited
Architect of the Year Award (AYA)
Architecture was more or less identified with housing & more so with elite
housing. However, many countries have used architecture effectively for public
structures also, such as highways, metro rails, factories, harbours & any other
public facilities. These projects/structures shall consume lot of building materials.

21. If these structures have to look pleasing, relevant architecture has to be applied
in their designs.
The subject of challenges to architecture vis-a-vis town planning, infrastructure
development & affordable housing is being discussed in various countries
through various forums. Mr.Yadupati Singhania, Managing Director,
J.K. Cement Ltd., thought that we could contribute to this cause by encouraging
outstanding talent in the profession of architecture as a continuous process &
thereby set an example for others in this profession to do better & better.
This is how Architect of the Year Award (AYA) began way back in the year 1990
(1st Architect of the Year Award). Awards were subsequently extended to
architects of neighbouring countries from the year 1996 (7th Architect of the Year
Award). To encourage state level architecture, State Architecture awards were
also introduced from the award year AYA-98 (9th Architect of the Year Award)
Quality policy
Technologies change, needs change, and in turn products change. What remain
unchanged, are values and ideas that propel any entity forward. Ideas that are
concrete and unwavering, just like their outcome.
At JK Cement we are crossing milestones, one after another, propelled by the
following concrete ideas :
1. To provide products that fully comply with technical specifications committed to
our customers, at the most competitive price.

22. 2. To ensure complete reliability in our dealings with customers, distributors,
suppliers & other partners.
3. To operate our manufacturing facilities in such a way, that they help sustain
the environment & provide new opportunities for the underprivileged in that
region.
4. To ensure that every department of our every office encourages new & better
ideas and freedom of expressing the same, and cultivate a work environment
that rewards excellence in every employee’s chosen area of work leading to a
harmonious & fulfilling atmosphere.
5. To motivate every team member to challenge his last best performance and
out do it continually
6. To remain abreast and imbibe the latest technological trends for the benefit of
our customers.

23. The rationale of the study
As my project topic suggests, I have tried to find out the CUSTOMER
SATISFACTION AND MARKET POTENTIAL OF JK WHITE CEMENTS
This topic was chosen mainly to find whether the customers who buy JK
CEMENTS require some more modifications in the brand i.e
.changes in price or improvement in the quality of the cement etc.
the quality of the cement and for this purpose people from different strata were
chosen like general customers, dealers, masons, bulk consumers etc…
I have used questionnaire and other scientific tools like personnal
interviews and telephonic interviews to know about the customer mood and the
I have also tried to find the market potential of jk cement in Delhi and NCR. For
this I had conducted market research in different parts of Delhi like Sarita vihar ,
Nehru plce, some parts of Ghaziabad, Gurgaon and faridabad.
For this I met different dealers , retailers and masons as well as industrial bulk
suppliers in different parts of the DELHI NCR

24. Scope of the study
This study includes direct interaction with the customers and this helps us to
know the ‘Market potential and customer satisfaction level ‘to great
accuracy. This study is of great importance to the company which will know
about the customer preference to buy a particular brand.
The company will gain information about customer’s preference depending on
the following factors:-
1. Price factor
2. fineness of the cement
3. setting time
4. attractive packaging
5. brand image—one of the important factor
6. quick delivery time
7. wide availability
So , scope of this study is to achieve customer satisfaction
because customer satisfaction and quality maintenance is company’s
primary objective…

25. Objective of the study:-
Main objective:- The main objective of this study is to find out the MARKET
POTENTIAL AND CUSTOMER SATISFACTION LEVEL through scientific tools
like interviews and questionnaire .
Specific objectives:- The specific objectives will be met by finding the customer
satisfaction level through direct interaction with the customer and by knowing
their preference. This will include all the processes like asking questions from
the customers through questionnaire which will be included in the primary survey
. once the primary survey is done , secondary survey will be done . The path of
the secondary survey will be decided depending on the conclusions coming out
of the primary survey.

26. Research methodology
Data collection method—
I have selected around 50 persons for the the interview.
I have taken help of the questionnaire , personal and
Telephonic interview.
I have collected the data through focus interviews. I have concentrated
on taking interview mainly from the following group of people.
1. Masons—20%
2. Architects/ engineers--- 10%
3. Retail stockiest---- 2
4. Wholesale---- 10%
5. Industrial bulk consumer—10%
6. General consumer---- 30%

27. The survey was descriptive and sample chosen was mainly on the judgement of
the researcher with the help and proper consultation of project guide..
In this kind of sampling method , the population elements are based on the
judgement of the researcher. The researcher exercises judgement or expertise ,
chooses the elements to be included in the sample , because he or she believes
that they are represntative of the population of intrest or are otherwise
appropriate.
In this survey , I visited the dealers of cement also to know the strategy of the
companies , especially jk cements to satisfy the customer as they buy the
cement of any particular company….
The main purpose of the descriptive research is description of the state of
affairs as they exist at present.
Swot analysis of JK white cements
Strengths :
1. Leading position in attractive Northern India grey cement market:
Based on CMA data, Northern Indian cement manufactuers have consistently
operated at the highest levels of capacity utilization among India’s five regions.
We believe this reflects the strong demand in Northern India for cement products
relative to supply. Further, based on capacity expansions announced by cement
manufacturers, we expect cement plants in Northern India to continue to operate
at high utilization levels and anticipate continued strong demand for our grey
cement products in the near and medium-term. We believe that we are well

28. positioned to take advantage of this demand, as the fourth largest grey cement
manufacturer in Northern India, and the largest grey cement manufacturer in the
state of Rajasthan.
2. Second largest white cement producer in India:
White cement accounted for 16.6% of our total cement revenue and
35.2% of adjusted EBITDA from our cement operations in fiscal 2005, and
15.5% of revenues and 26.7% of our adjusted EBITDA from our cement
operations in the six months ended September 31, 2005. Unlike grey cement,
the white cement industry in India is highly concentrated with the two largest
players accounting for the substantial majority of India’s production capacity.
Consequently, prices of white cement have been relatively less volatile and
sales of white cement have generated more stable cash flows for us even
during industry downturns in grey cement. We also believe our position as the
second largest producer of white cement in India, together with our
nationwide delivery network, significantly enhances the overall brand image of
JK Cement.
3. Proximity and access to large reserves of high quality limestone:
We have access to large reserves of limestone for both our grey and white
cement operations, which we believe are sufficient to sustain our operations
well into the future. Based on independent geological surveys of different
mines during 1996 to 2001, we believe that our limestone reserves are
sufficient to support our current and planned capacity for approximately 40

29. years for both grey and white cement. (Put in risk - assuming we are able to
renew our existing leases upon their expiry) As one of the first cement
producers in Northern India, we were able to choose our limestone reserves
in an area with high quality limestone resources.
4. Quality of products and strong brand name: We believe that brand
name and reputation are important to retail purchasers of cement in India.
We have built a strong reputation among cement purchasers by
consistently providing high quality products. We believe that there is
strong customer awareness of our brands, JK Cement
(“Sarvashaktiman”), for grey cement in our principal market in Northern
India, and JK White (“Camel”), for white cement across India. Further, we
believe that our brand name and our reputation for consistently supplying
high quality products provide us with a competitive advantage in ensuring
that cement dealers carry our products.
5. Extensive marketing and distribution network:
We have a wide distribution network for grey cement in Northern India. We
also have a strong all-India distribution network for white cement. Our distribution
network for grey cement products consists of 44 feeder depots serviced by seven
regional sales offices in Delhi, Haryana, Uttar Pradesh, Punjab, Rajasthan,
Madhya Pradesh and Gujarat. Our white cement network comprises 20 feeder
depots serviced by 13 regional sales offices in Delhi, Chandigarh, Uttar Pradesh,
West Bengal, Andhra Pradesh, Tamil Nadu, Karnataka, Kerala, Maharasthra,

30. Gujarat, Madhya Pradesh and Rajasthan. In addition, we have more than 4,000
retail stores that stock our grey and white cement products, as well as 22 sales
promoters and four handling agents. We believe that the extent of this network,
and our relationships with our dealers, enables us to maket and distribute our
cement widely and efficiently.
6. Experience and technical know-how:
We have 30 years of experience in the Indian cement industry, which we believe
provides us with the skills to maximize production efficiency, expand production
capacity quickly and reduce costs. Over the years, we believe that we have
developed long-term customer relationships and a strong reputation for quality. In
addition, we have a proven track record of upgrading and modernizing our
production capabilities efficiently, having increased our production capacity at
Nimbahera by more than 80%, from 1.54 million tons in 1998 to 2.8 million tons
as of September 30, 2005.
Weaknesses :
1. It is at relatively low position in other parts of the country except north.
2. Low attention on customer relationship management in some parts of
INDIA.

31. 3. No high revenue from the white cement market because there are only
two players who have considerable market share and this has resulted in
the stable cash flows.
4. Due to presence of other cement producers in Delhi and its adjoining
areas the market share of the JK cement remains low.
5. It has its own mines reserves but it has to consistently renew the lease
failing which it will have no source of production at its major production
site.
Opportunities :
1. Rural projects of state governments and central governments like dams
and bridges can be a major opportunity for the company.
2. Company is a part of reputed and huge jk group. So it can expand its
market in foreign areas also utilizing its brand leverage.
3. Prestigious Projects can be major opportunities.
4. It has major opportunities in real estate industry due to boom in the related
projects.
5. Indian infrastructure is seeing a two fold increase. So there is also a lot of
opportunity in the concerned sector
6. Major foreign projects of governments can also be a major opportunity.

32. Threats
1. Cost of production is high. So company needs to reduce the cost of
production and should concentrate on promotional schemes too.
2. Presence of other big players in delhi region is a major threat for the
company.
3. Rising cost of raw material is also a threat for the company
Marketing strategy of jk cements limited
1.SEGMENTATION:-
The company has segmented the market geographically . it sells its
products all ovwer India with major presence in northern region
PRICING STRATEGY
1. . Before deciding the price of the cement company has
considered the following points:--
Cost factor:-
Manufacturing cost
Transporting cost
Storing and material handling
Other cost
Officer expenses
Other expenses
Tax and interest
Competitor’s price and offering

33. MARKETING STARTEGY
Company conducts market surveys to identify market trends and customer’s
response, company position in the market etc. There is R and D department
which continuously trying to improve the quality of the product at the
minimum cost and trying to meet the demand of the customer.
MARKETRING STRATEGY FOR COMPETITORS
Company always keeps an eye over its competitors activities and its
offerings like different promotional schemes, product price etc. It also takes
proper action according to competitors strategy.
DISTRIBUTION STRATEGY
The company is distributing cement by following ways:-
Direct to consumer
Depot
1.whole seller
2.retailer

34. Director General of sales and disposal
1. Tender sales
2. Government department
Non trading sales
1 wagon load
2. Institutional sales
Method of developing dealers:-
Company conducts the market survey also to motivate the sub dealer and
advertise the programmer. The company takes profile of the dealers and
gives dealership only to those in a particular area where the company is not
having already existing dealer.
MARKETING STRATEGIES
1. To increase sales in high realization
2. To develop stockiest network consisting of retailer or final outlet which
directly sells to customer.
3. Increasing sales of branded cement ie jk white cements
4. Marketing distribution network more efficient and cost effective.
The company has a dedicated team of highly skilled professionals and
Experienced application engineering. They are functioning in an advisory
capacity. Besides handling their constructional problem the cell offering all

35. kind of assistance in the selection of the right cement for different application
to ensure cost effective , durable and safe construction.

36. DATA ANALYSIS
In this section , we will analyze the data which was obtained through different means of
data analysis like questionnaire, personal interviews. Since this survey was related to
the cement industry, so people related to it like masons, bulk consumer , retailer and
above all general consumer were interviewed.
The whole data analysis section is done with help of different charts, bars
and other techniques available. The interview was mostly done on selected
persons of selected category. I have done survey mainly on the basis of following
structure…..
1. Masons—20%
2. Arch/ Engineers—10%
3. Retail stockists--- 20%
4. Wholesalers--- 10%
5. Bulk consumers—10%
6. General consumer—30%
For doing the survey , a questionnaire was designed as a scientific tool so as to
know the customer’s attitude towards the satna cement works limited.
The main purpose of this survey was to know the customer satisfaction
level
. This survey was done partially DELHI and somepartsd of NCR also. Some
other parts of the country like the neighboring UP was also touched for the
survey.

37. DATA ANALYSIS
This page and onwards will contain step by step analysis of different
questions…
Q 1 How important is price for you while buying the cement?
1. MASONS
Choices / options No of respondents
1. Extremely important 3
2. Rarely important 2
3. Not at all important 0
Importance of price
respondents
4
3
no of
2
1
0
Extremely Rarely important Not at all
important important
choices /options

38. 2. Arch / engineers
Options / choices No of respondents
1.Extremely important 2
2.Rarely important 1
3.Not at all important 0
2
1.5
1
0.5
0
Extremely Rarely Not at all
important important important
Q .2 Do you consider colour of cement as an important factor for buying of the
cement?
1. Masons
Options /choices No respondents
1.Definitely important 2
2.Not so important 1
3.Sometimes important 1
4..Not sure 1
colour of cement
5
4
no of
3
responde
2
nts
1
0
Definitely sometimes
important important
choices

39. 2. Retail stockists.
Options No of respondents
1.definitely important 1
2 .not so important 2
3.sometimes important 1
4. not sure 1
Definitely important
Not so important
sometimes important
Not sure
3. General consumer
Options No of respondents
1.Definitely important 1
2.Not so important 4
3.sometimes important 1
4.not sure 1
Importance of colour
4
No of
2
respondents
0
Definitely Not sure
important
Parametrs
Above interpretation indicates that colour of the cement is not an important
factor. From survey done on different group of people , it is evident that masons,
retail stockists and general consumer, all of them do not give too much attention
to colour of the cement….
Q .3 Is early setting time an important factor in buying of the cement?

40. Architects / engineers
No of respondents
Parameters
1.Important 1
2.Not important 0
3.Extremely important 2
4.Not sure 0
2
1.5
1
0.5
0
Important extremely
important
3. Retail stockiest
No. of respondents
Parameters
1.Important 1
2.Not important 0
3.Extremely important 3
4.Not sure 1

41. Important
Not important
extremely important
Not sure
4.General consumer
Parametrs
No. of respondents
1. Important 2
2. Not important 1
3.Extremely important 4
4. Not sure 0
4
3
2
1
0
Important Not extremely Not sure
important important
The above interpretation clearly indicates that early setting time is one of the
important factor with all group of people giving more weightage to it.
Q .4 Do you think that attractive packaging is an important factor while buying a
cement?
1. Retail stockiest.
Parametrs
No of respondents
1. Very much 2
2. Not so much 2

42. 3. Can’t say 1
2.5
2
1.5
1
0.5
0
very much not so much cant say
2. Whole salers
Parametrs
No. of respondents
1. Very much 1
2. Not so much 1
3.Can’t say 1
1.5
1
Series1
0.5
0
very much not so much cant say
3. General consumer
Parameters
No of respondents
1.Very much 2
2. Not so much 4
3.cant say 1

43. 5
4
3
2
1
0
very much not so much cant say
The response to this question clearly indicates that people do not tend to buy
those cement which have good and attractive packaging as after all quality
matters.
4. Rate the following on the scale of 1 to 5!!
Parameters
Brand Brand Delivery Price Packaging
name image time
ACC 4 3 3 4
GUJ 3 3 3 3
AMBUJA
SATNA 3 2 3 2
CEMENTS
LAFARGE 4 3 3 3
Table given here is determining the customer’s preference of different brands
depending on different parameters.
It is evident from the table that ACC and LAFARGE excel on every
parameter i.e. brand image, delivery time, price and packaging etc…
.
Brand image and price are one of the important factors in the selection of
any Cement.
Q5. Do you prefer the cement which is very fine (i.e. fineness of the cement)?
1. Masons

44. Parametrs
No of responses recieved
1. Sometimes 1
2. Always 2
3. Never 1
4.Can’t decide 1
Fineness of the cement
2.5
2
1.5
1
0.5
0
Sometimes Always Never Cant decide
2. Retail stockiest
Options
Response
1. Sometimes 1
2. Always 3
3. Never 1
4.Cant decide 0
Sometimes
Alw ays
Never
Cant decide

45. 3. General customer
Choices / options
Responses
1. Sometimes 3
2. Always 3
3.Never 1
4.Cant decide 0
3.5
3
2.5
2
1.5
1
0.5
0
Sometimes Always Never Cant decide
We can interpret from the response received that fineness of the cement is one of the
Important factor that consumer takes into account while buying a cement.
Q6. How many retailers of Ambuja Cement do you find in your city?
1. Masons
No. of retailers
Response
1 . 1-5 2
2. 5-7 3
3. 7-10 0
4. More than ten 0

46. no. of retailers
4
3
2
1
0
one-five five-seven seven -ten more than 10
2. Wholesalers
Options
NO. Of responses
1. 1-5 1
2.5-7 2
3.7-10 0
4. more than 10 0
3
2
1
0
one-five five-seven seven -ten more than 10
The response received from the customers indicate that there are enough
cement retailers in their city.
7. If you were a dealer Which type of schemes and incentives do you except
from the company?
Options
No of responses
1. Gift items given 1
2. Award for best retailing 2
3.Promoting certain incentive 0

47. schemes
4.Educate about the 0
company’s policy
5. Foreign tours 2
It is evident that the retailers want awards, tours and gifts on equal basis.
2.5
2
1.5
1
0.5
0
gifts items awards incentive education foreign tours
schemes
8. Do you find your desired cement easily in your city?
1.Masons
Options
Responses
1.sometimes 2
2.Always 2
3.Never 1

48. sometimes
always
never
2. Industrial bulk consumer
options
No. of respondents
1. Sometimes 1
2.Always 2
3.Never 0
2
1.5
1
0.5
0
sometimes alw ays never
3. General customer
choices responses
1. sometimes 2
2. never 1
3. always 4

49. 5
4
3
2
1
0
sometimes never always
Q 9. Which medium of information made you aware about satna cements?
1.General customer
Options
Level of responses
1. Newspapers 2
2.Hoardings 3
3. TV ads 1
4. Meeting with dealers 1
3.5
3
2.5
2
1.5
1
0.5
0
newspaper hoardings tv ads meeting
with dealers

50. 2. Industrial bulk consumer
options
No of
respondents
1.Newspaper 0
2.Hoardings 1
3.Tv ads 0
4.Dealers meet 2
Analysis of this question reveals that hoardings are the best means of the
communication as any illiterate person can also read the various signs which
could be there on the hoardings….. and also there should be regular dealer
newspaper
meeting to know the customer aware of the cement…
hoardings
tv ads
meeting with dealers
Q9. Do you find compressive strength of the cement as a major factor while
buying any cement?
1. Masons.
Options
Response rate
Very much 3
Not much 2
Cant decide 0
3.5
3
2.5
2
Series1
1.5
1
0.5
0
very not much cant
much decide
2. General customer

51. Options
Response level
Very much 5
Not much 1
Can’t decide 1
6
5
4
3
2
1
0
very much not much cant decide
Analysis of this question reveals that customers don’t comprise on the matter of
quality…
Q 10. Is the response time of the company to the complaints satisfactory?
1. Wholesalers
Parameters
Response level
1. Satisfactory 1
2.Good 1
3. Not so good 1
4. Not sure 0
2. General customer
Parameters
Response level
1. Satisfactory 3
2 Good 2
3. Not so good 1
4. Not sure 1
Hence , we analyze that response time of the company to the complaints is
overall satisfactory….

52. Chapter –6
Limitations
 This survey was conducted partially in DELHI , northern part of India and
some parts of UP. So market potential of the JK cement in other parts of the
country couldn’t be determined.
 Some customers were not able to understand some of the questions.
 The sample size was not enough and it failed to give the clear picture or the
results of the survey.(Sample size =50 )
 Some customers or dealers did not cooperated well.
 The questionnaire did not cover the whole aspect of the market potential of JK
cements limited.

53. Findings
On the basis of analysis of the questionnaire and data analysis, we find that:----
1. Market potential of the Jk cement limited is very good in the northern parts
despite the presence of so many branded cement companies like ACC ,
GUJRAT AMBUJA etc.
2.Customer satisfaction with respect to the JK cement is satisfactory.

54. 3. Despite the increasing cost of the raw material the company is able to bring
down the cost of manufacturing through procurement of raw materials by the
mines which are located nearby .
3. Customers come to know about JK cements mainly from hoardings as many
people are illiterate .
4. Customers want more prizes and dealers want more incentives , gifts and
tours.
Dealers also want more meeting with officials of the cement companies.
5. Bulk consumers want more and more cash discount.
Suggestions
1. The company should concentrate on more aggressive advertisement to
promote their products.
2. The company should launch more and more promotional schemes like “ two
for the price of one” or more discount coupons.
3 Company should do more to promote their brand as customer prefer good
brand while buying any cement.

55. 4. Customer prefer price as an important factor while buying any cement so the
company should fix the price accordingly.
5. Company should concentrate on direct meeting with the customer as they are
the most vital element in deciding the growth or decline of any company.
6.Company should decrease the response time to the complaint received.
7.The company should fix certain amount of cement especially for the dealers
and give them free of cost as incentives.
8. The company should appoint more and more persons for the promotions of the
brand.
9. The company should expand its market and concentrate in deep penetration in
northern part of India.
10. Company should decrease delivery time of the cement.
BIBLIOGRAPHY
1. www.jkcement.com
2. www.jk-white.com/
3.Labour and Industrial chronicle-- Survey of major cement plants
4. Marketing research—Naresh kumar Malhotra , Pearson education
5. Marketing Management—Phillip Kotler