A study on the factors which influence a dealer/retailer's decision in selecting a cement brand for selling.

Ramaiah Institute Of Management Page | 1
INDUSTRY ANALYSIS
India is the second largest producer of cement in the world. No wonder, India's cement industry is
a vital part of its economy, providing employment to more than a million people, directly or
indirectly. Ever since it was deregulated in 1982, the Indian cement industry has attracted huge
investments, both from Indian as well as foreign investors.
India has a lot of potential for development in the infrastructure and construction sector and the
cement sector is expected to largely benefit from it. Some of the recent major government
initiatives such as development of 100 smart cities are expected to provide a major boost to the
sector.
Expecting such developments in the country and aided by suitable government foreign policies,
several foreign players such as Lafarge-Holcim, Heidelberg Cement, and Vicat have invested in
the country in the recent past. A significant factor that aids the growth of this sector is the ready
availability of the raw materials for making cement, such as limestone and coal.
 India is the second largest cement producer as well as consumer in the world led by the enormous
growth in the infrastructure & construction sector for the last 2 decades.
 As of August 2015, cement production in India accounted for around 6.7 per cent of overall
global cement output.
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History of cement industry:
Cement Industry is one of the largest industries of the world and occupies predominant place as
one of the basic industries for development and its employment generation capacity. Cement ranks
next to steel in construction material and so is the basis of all modern construction.
Discovery of cement:
John Smeaton, who is also known as “father of civil engineering”, credited for design of many
bridges, canals, harbours etc. was the first proclaimed civil engineer, and pioneered the use of
‘hydraulic lime’, which led to discovery of modern cement. The common cement or Portland
cement was prepared and Patented by Joseph Aspdin in 1824. In the later part of 19th century,
cement production was taken up by many countries many decades after Aspdin in England took
the first patent.
First cement factory of India:
India entered into the Cement Era in 1914, when the Indian Cement Company Ltd. started
manufacturing Cement in Porbundar in Gujarat. However, even before that a small cement factory
was established in Madras in 1904 by a company named South India Industrial Ltd., Indian Cement
Company Ltd. produced only one type of cement that was designed by the British standard
committee as “Artificial Portland Cement”. This company marketed its product in Mumbai,
Karachi, Madras and other parts and became a financial success. At that time, India had to import
cement from England. The price of the imported cement was higher. Some other factors such as
increase in domestic demand, reduction in supply from abroad (due to war), availability of Indian
Capital, ample raw material, Cheap labour, support of the government etc. made it a leading
industry in India in a short period of time. In January 1915, a cement unit was started at Katni in
Madhya Pradesh In December 1916; another unit at Lakheri in Rajasthan was started. During the
First World War period, cement production in these three important factories was taken under
control of the government and later the control was lifted once the war was over. After the war,
six more units were launched in India. In 1924, India’s cement production was 267000 tons.
However, initially this increased production could not reduce the imports and the industry suffered
a rate war. This led to closure of many indigenous units. The Indian companies that were away
from ports or commercial centres faced the locational disadvantage. The above incidents led to the
industry stakeholder approach to the government for some kind of protection. The British
government constituted a Tariff board, which recommended protection of the indigenous industry
against the dumping of the imported cement. It recommended raising of the customs duty to 41%
that was around 15% at that time, but the government did not accept this recommendation.
Key other landmarks in history of cement:
In 1925, first association of the cement manufacturers was formed as “Cement Manufacturers
Association“.
 “Concrete Association of India” followed it in 1927.

 In 1930, “Cement Marketing Company of India” was started and this was followed by a quota
system based on installed capacity of the factories.
 In 1936, all the cement companies except one i.e. Sone valley Portland Cement Company
agreed and formed Associated Cement Companies Ltd. (ACC).This was the most important
even in the history of cement industry in India. Many more companies were established in the
following years.
 Before partition, India had 24 factories, out of which India retained 19 factories, which annual
production of 2.1 million tons. Pakistan faced a problem at the supply side as it had problem of
disposal of the cement produced and India faced a problem in demand side as production fell
to 2.1 million tons from 2.7 million tons.
 After Independence, the partition of the country had a bad impact on the cement industry.
Cement expansion scheme:
In 1948, the government adopted the Cement Expansion Scheme, which envisaged new factories
to increase the production. New factories were established at Bagalkot, Jaipur, Orissa, Travancore
etc. In 1950-51, there were 22 operating units with an installed capacity of 3.3 million tons. Cement
industry was given a great importance in all the initial five-year plans. The target of the first five-
year plan was to raise the installed capacity to 5.4 million tons that was achieved. The industry has
grown to manifold since then.
Advantages for India:
 Robust demand
 Robust infrastructure growth during 12th Five Year Plan to drive growth.
 Demand is expected to be boosted by growth in real estate sector, initiative to build 100
smart cities to give a further stimulus.
 Long-term potential
 Oligopoly market, where large players have partial pricing control.
 Low threat from substitutes.
 Improvement in the sector is expected if government led projects are translated into
execution mode.
 Increasing investments
 Robust investments are being made by the existing players to expand their capacity.
 FDI inflow in industry related to manufacturing of Cement & Gypsum products reached
USD3.11 billion, during April 2000 to September 2016.
 Dalmia Bharat Group plans to spend USD293 million for increasing its production capacity
in Odisha.
 Attractive opportunities
 The Northeast, which is witnessing a construction boom, offers attractive investment
opportunities.
 The Maharashtra State Cabinet has approved State Thermal Power Plant Ash Utilisation
Policy, under which the government has invited cement companies, near power stations, to
utilise the 1.8 crore ton ash produced, annually.

Types of cement:
Some varieties in cement always find good demand in the market. Among the different varieties
of cement, India produces Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC),
Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid Hardening Portland Cement
and Sulphate Resisting Portland Cement. The share of blended cement in total cement production
has increased from 29 per cent in 1997-98 to 54.5 per cent in 2003-04.
 Ordinary Portland cement (OPC): Also referred to as grey cement or OPC, it is of much
use in ordinary concrete construction. In the production of this type of cement in India,
Iron (Fe2O3), Magnesium (MgO), Silica (SiO2), Alumina (AL2O3), and Sulphur trioxide
(SO3) components are used. There are two grades of cement –OPC43 and OPC53.It
accounts for 70% of the consumption. OPC comes in three different grades-Ordinary
Portland cement 33, 43, 53 grade (OPC), 53-S (Sleeper Cement). 33, 43 and 53 grade in
OPC indicates the compressive strength of cement after 28 days when tested as per IS:
4031-1988, e.g., 33 Grade means that 28 days of compressive strength is not less than 33
N/mm2 (MPa) . Similarly, for 43 grade and 53 grade the 28 days compressive strength
should not be less than 43 and 53 MPa respectively. The Bureau of Indian Standards (BIS)
is also introducing 43 and 53 grade in PPC and PSC shortly.
 Portland Pozzolona Cement (PPC): As it prevents cracks, it is useful in the casting work
of huge volumes of concrete. The rate of hydration heat is lower in this cement type. Fly
ash, coal waste or burnt clay is used in the production of this category of cement. It can be
availed at low cost in comparison to OPC. PPC produces less heat of hydration and offers
greater resistance to attack of aggressive environment gives long-term strength and
enhances the durability of structures. PPC is manufactured by inter grinding OPC clinker
with 15-35% of pozzolanic material. Pozzolanas are essentially siliceous or aluminous
material, which in itself possesses no cementitious properties, which will be in finely
divided form and in the presence of moisture react with calcium hydroxide, liberated in the
hydration process, at ordinary temperature, to form compounds possessing cementitious
properties. The pozzolanic materials generally used are fly ash or calcined clay. PPC is
used in heavy load infrastructure and constructions such as marine structures, hydraulic
structures, mass concreting works, plastering, masonry mortars, and all applications of
ordinary Portland cement.
 White cement: It is a kind of Ordinary Portland Cement. The ingredients of this cement
are inclusive of clinker, fuel oil and iron oxide. The content of iron oxide is maintained
below 0.4% to secure whiteness. White cement is mainly used to increase the aesthetic
value of a construction. It is preferred for tiles and flooring works. This cement costs more
than grey cement.
 Portland Blast Furnace Slag Cement (PBFSC): PBFSC consists of 45 per cent clinker,
50 per cent blast furnace slag and 5 per cent gypsum and accounts for 10 per cent of the
total cement consumed. It has a heat of hydration even lower than PPC and is generally
used in the construction of dams and similar massive constructions. PSC is obtained by
mixing blast furnace slag, cement clinker and gypsum and grinding them together to get
intimately mixed cement. The quantity of slag varies from 30-70%. The gain of strength of

PSC is somewhat slower than OPC. Both PPC and PSC will give more strength than that
of OPC at the end of 12 months. PPC and PSC can be used in all situations where OPC is
used, but are preferred in mass construction where lower heat of hydration is advantageous
or in marine situations and structures near seacoast or in general for any structure where
extra durability is desired. For e.g., Marine structure, structures near the sea, sewage
disposal treatment works, water treatment plants, etc.
 Oil Well Cement: Made of iron, coke, limestone and iron scrap, Oil Well Cement is used
in constructing or fixing oil wells. This is applied on both the offshore and on-shore of the
wells.
 Sulphate Resistant Cement: Sulphate Resistant is a pre-blended, ready-to-use cement
base grout containing non-ferrous fluidities and anti-shrinkage compounds blended with
siliceous aggregate and Portland cement. A highly sulphate resistant cement, with an
extremely low C3A content, is utilized in the manufacture of Sulphate Resistant Grout.
This special cement is very resistant to attack from sodium and magnesium sulphates found
in ground water. SRC can be used for Foundation, Piles, Basements, Underground
structures, sewage and water treatment plants and coastal works, where Sulphate attack due
to water or soil is anticipated. Sulphate Resistant Cement is used in projects such as dams
that are exposed to high amounts of sulphates. It is also used wherever there are
constructions that are in direct contact with clay soil, which contains a large amount of
sulphate salt, such as foundations and pillars.
Market size:
Cement demand in India is expected to increase due to government’s push for large infrastructure
projects, leading to 45 million tonnes (MT) of cement needed in the next three to four years.

India's cement demand is expected to reach 550-600 Million Tonnes Per Annum (MTPA) by 2025.
The housing sector is the biggest demand driver of cement, accounting for about 67 per cent of the
total consumption in India. The other major consumers of cement include infrastructure at 13 per
cent, commercial construction at 11 per cent and industrial construction at 9 per cent.
To meet the rise in demand, cement companies are expected to add 56 MT capacity over the next
three years. The cement capacity in India may register a growth of eight per cent by next year-end
to 395 MT from the current level of 366 MT. It may increase further to 421 MT by the end of
2017. The country's per capita consumption stands at around 190 kg.
A few companies dominate the Indian cement industry. The top 20 cement companies account for
almost 70 per cent of the total cement production of the country. 188 large cement plants together
account for 97 per cent of the total installed capacity in the country, with 365 small plants account
for the rest. Of these large cement plants, 77 are located in the states of Andhra Pradesh, Rajasthan
and Tamil Nadu.
Costs affecting cement industry:
Over the past seven years, cost of cement production has grown at a CAGR of 8.4%. In addition,
the producers have been able to pass on the hike in cost to consumers on the back of increased
demand. Average realizations have increased from Rs. 1,880 per ton in FY 03 to Rs. 3,133 per
tons in FY 09, at a CAGR of 13.6%, which has been reflected in higher profit margins of the
industry. To reduce the cost of production, the industry has focused on captive power generation.
Proportion of cement production through captive power route has increased over the years. In
addition, cement movement by rail has increased over the years. Freight and energy costs are also
increasing; however, in the current market scenario, manufacturers have the flexibility to pass on
the increase in costs to end consumers.
Let us have a look at the cost factors affecting the cement industry:
 Capacity Utilization: Since the industry operates on fixed cost, higher the capacity sold, the
wider the cost distributed on the same base. Nevertheless, one should also keep in mind, that
there have been instances wherein despite a healthy capacity utilization, margins have fallen
due to lower realizations.
 Power: The cement industry is energy intensive in nature and thus power costs form the most
critical cost component in cement manufacturing (about 30% to total expenses). Most of the
companies resort to captive power plants in order to reduce power costs, as this source is
cheaper and results in uninterrupted supply of power. Therefore, higher the captive power
consumption of the company, the better it is for the company.
 Freight: Since cement is a bulk commodity, transporting is a costly affair (over 15%).
Companies, which have plants located closer to the markets as well as to the source of raw
materials have an advantage over their peers, as this leads to lower freight costs. In addition,
plants located in coastal belts find it much cheaper to transport cement by the sea route in order
to cater to the coastal markets such as Mumbai and the states of Gujarat and Tamil Nadu.
Because of sufficient reserves of raw materials such as limestone and gypsum, the raw material
costs are generally lower than freight and power costs in the cement industry. Excise duties
imposed by the government and labour wages are among the other important cost components
involved in the manufacturing of cement.

 Operating margins: The company should have a consistent record of outperforming its peers
on the operational performance front i.e. it should have higher operating margins than its
competitors in the industry should. Factors such as captive power plants, effective capacity
utilization results in higher operating margins and therefore these factors should be looked into.
Since cement is a regional play because of its high freight costs, the company should not have
all its plants concentrated in one region. It should have a geographical spread so that adverse
market conditions in one region can be mitigated by high growth in the other region.
Investments:
On the back of growing demand, due to increased construction and infrastructural activities, the
cement sector in India has seen many investments and developments in recent times.
According to data released by the Department of Industrial Policy and Promotion (DIPP), cement
and gypsum products attracted Foreign Direct Investment (FDI) worth US$ 3.117 billion between
April 2000 and September 2016.
Some of the major investments in Indian cement industry are as follows:
 Emami Ltd., a fast-moving consumer goods (FMCG) company, plans to invest around Rs 8,500
crore (US$ 1.27 billion) to scale up its cement production capacity from 2.4 million tonnes
(MT) to 15-20 MT in the next three to five years.
 The Gujarat-based Nirma group, with presence in detergent, soap and chemicals sector, has
bought Lafarge India’s cement business, consisting of 11 MT production capacity, for US$ 1.4
billion.
 FLSmidth, a global engineering company based in Copenhagen, has signed a contract with
India’s Larsen & Toubro Limited for engineering, procurement and supply of equipment for a
complete cement production line with a capacity of 3,000 tonne in Tamil Nadu.
 KKR Mauritius Cement Investments Limited acquired 8.5 per cent stake in Dalmia Bharat
Limited (DBL).
 Cement maker Burnpur Cement plans to invest Rs 500 crore (US$ 75 million) for expansion of
its production capacity to 3 MTPA in the next three to four years.
 India's largest cement maker UltraTech Cement is looking forward to acquire Jaiprakash
Associates six cement factories for a total value of Rs 16,500 crore (US$ 2.475 billion)
 Birla Corporation Ltd, a part of the MP Birla Group, has agreed to acquire two cement assets
of Lafarge India for an enterprise value of Rs 5,000 crore (US$ 750 million).
 Dalmia Cement (Bharat) Ltd has invested around Rs 2,000 crore (US$ 300 million) in
expanding its business in North East over the past two years. The company currently has three
manufacturing plants in the region — one in Meghalaya and two in Assam.
 JSW Group plans to expand its cement production capacity to 30 MTPA from 5 MTPA by
setting up grinding units closer to its steel plants.
 UltraTech Cement Ltd has charted out its next phase of Greenfield expansion after a period of
aggressive acquisitions over the last two years. UltraTech has plans to set up two Greenfield
grinding units in Bihar and West Bengal.
 UltraTech Cement Ltd bought two cement plants and related power assets of Jaiprakash
Associates Ltd in Madhya Pradesh for Rs 5,400 crore (US$ 810 million).

 JSW Cement Ltd has planned to set up a 3 MTPA clinkerisation plant at Chittapur in Karnataka
at an estimated cost of Rs 2,500 crore (US$ 375 million).
 Andhra Cements Ltd has commenced the commercial production in the company's cement
plants – Durga Cement Works at Dachepalli, Guntur and Visakha Cement Works at
Visakhapatnam.
Government Initiatives:
In the 12th Five Year Plan, the Government of India plans to increase investment in infrastructure
to the tune of US$ 1 trillion and increase the industry's capacity to 150 MT. The Government of
India incorporated the Cement Corporation of India (CCI) in 1965 to achieve self-sufficiency in
cement production in the country. Currently, CCI has 10 units spread over eight states in India. In
order to help the private sector companies thrive in the industry, the government has been
approving their investment schemes. Some such initiatives by the government in the recent past
are as follows:
 The Parliament of India has cleared amendments to the Mines and Minerals Development
and Regulation (MMDR) Act, which will enable companies to transfer captive mines leases
similar to mines won through an auction, and which is expected to lead to increased
Mergers and Acquisitions (M&A) of steel and cement companies.
 The Government of India is planning to revive the state-run cement factories across India,
in order to give a boost to road and realty projects by bringing down their construction
costs.
 Budget 2016-17 has proposed a slew of measures to boost infrastructure and investment,
which will be positive for the cement sector, as increased spending on infrastructure
increases the demand for cement. 100 per cent deduction for profits to an undertaking in
housing project for flats up to 30 square metres in four metro cities and 60 square metres
in other cities approved during June 2016 to March 2019 and completed in three years
 Incremental spend on smart city development, the government has allocated Rs 7,296
crore (US$ 1.09 billion) towards Urban Rejuvenation Mission (AMRUT and Mission
for Development of 100 Smart Cities
 Rise in allocation under Pradhan Mantri Gram Sadak Yojana (PMGSY) to Rs 19,000
crore (US$ 2.79 billion) for FY17.
 The Government of India plans to enact a law that will allow the companies which have
received mining licenses without having gone through the auction process, to transfer these
leases, in a move that is expected to make mergers and acquisitions (M&As) easier in the
steel, cement, and metals sectors.
 The Government of Tamil Nadu has launched low priced cement branded 'Amma' Cement.
The sale of the cement started in Tiruchi at Rs 190 (US$ 2.84) a bag through the Tamil
Nadu Civil Supplies Corporation (TNCSC). Sales commenced in five godowns of the
TNCSC and will be rolled out in stages with the low priced cement available across the
state from 470 outlets.
 The Government of Kerala has accorded sanction to Malabar Cements Ltd to set up a bulk
cement handling unit at Kochi Port at an investment of Rs 160 crore (US$ 23.5 million).

 The Andhra Pradesh State Investment Promotion Board (SIPB) has approved proposals
worth Rs 9,200 crore (US$ 1.35 billion) including three cement plants and concessions to
Hero MotoCorp project. The total capacity of these three cement plants is likely to be about
12 MTPA and the plants are expected to generate employment for nearly 4,000 people
directly and a few thousands more indirectly.
 India has joined hands with Switzerland to reduce energy consumption and develop newer
methods in the country for more efficient cement production, which will help India meet
its rising demand for cement in the infrastructure sector.
 The Government of India has decided to adopt cement instead of bitumen for the
construction of all new road projects because cement is more durable and cheaper to
maintain than bitumen in the long run.
Future prospects:
The eastern states of India are likely to be the newer and virgin markets for cement companies and
could contribute to their bottom line in future. In the next 10 years, India could become the main
exporter of clinker and grey cement to the Middle East, Africa, and other developing nations of
the world. Cement plants near the ports, for instance the plants in Gujarat and Visakhapatnam, will
have an added advantage for exports and will logistically be well armed to face stiff competition
from cement plants in the interior of the country. A large number of foreign players are also
expected to enter the cement sector, owing to the profit margins and steady demand. In future,
domestic cement companies could go for global listings either through the FCCB route or through
the GDR route. With help from the government in terms of friendlier laws, lower taxation, and
increased infrastructure spending, the sector will grow and take India’s economy forward along
with it.
Factors that influence the cement industry:
 Economic scenario – Phases of growth in the economy are positively linked to cement
company growth.
 Cost structure and competitiveness – There is not much that cement companies can do
regarding cost structure because the margins are less to begin with. Cost advantages are
usually due to companies having access to a cheaper power source, a quality limestone reserve,
or being close to bigger markets.
 Legal, regulatory, and environmental scenario – The cement industry is affected by
regulatory norms. This is prominent in developed countries where environmental issues are
more stringent. This adds to the companies’ costs.
 Technological advancement – A disruptive innovation can give the innovating company an
advantage. For example, when companies moved from the wet manufacturing process to the
dry manufacturing process, there was a cost savings of 5%–10% of the overall cost structure.
 Geographic advantages – It is an advantage for companies to be near limestone mines or
waterways. Ease of transportation is an advantage.

Cement production in India has been growing at a fast pace:
 Cement production increased at a CAGR of 6.44 per cent to 282.79 million tonnes over FY07–
16.
 As per the 12th Five Year Plan, production is expected to reach 407 million tonnes by FY17.
 Availability of fly ash (from thermal power plants) & use of advance technology has increased
production of blended cement.
 The environment-friendly blended cement is more cost-efficient to produce, as it requires lesser
input of clinker & energy.
 In April-January 2017, cement production in the country increased by 1 per cent in comparison
to 3.3 per cent in April-January 2016.

Domestic cement consumption in India on an uptrend:
 Domestic cement consumption is to reach 280 million tonnes in FY15 from 165.63 million tonnes
in FY11.
 The consumption is further expected to increase at a CAGR of 15.7 per cent during FY11-17 &
reach 398 million tonnes.
 Demand will be supported by infrastructure development in tier 2 & tier 3 cities
 The country’s per capita consumption is around 190 kg as of 2015, compared to the world average
of over 350 kg per capita, which shows great potential for growth.
 With the situation coming back to normal after demonetisation, construction activities were seen
to be picking up in January 2017. On the back of this, demand for cement is expected to see
gradual improvement in the coming months.

Cement plants in India:
 As of 2016, India has 209 large cement plants across states and
is among the top 10 exporters both by value & by volume.
 Andhra Pradesh is the leading state with 40 large cement
plants, followed by Tamil Nadu, Uttarakhand & Rajasthan
having 21, 21 & 20 plants, respectively.
 Major cement clusters include - Satna (Madhya Pradesh),
Gulbarga (Karnataka), Yerranguntla (Andhra Pradesh),
Nalgonda (Andhra Pradesh) & Chanderia (Rajasthan).
The industry is split into five geographic segments:
Regions Installed Key Markets
Capacity (FY15E)
NOTE: mtpa = Million Tons Per Annum
CEMENT
INDUSTRY
South 132.7 mtpa Tamil Nadu,
Andhra Pradesh &
Karnatraka
North 85.6 mtpa Rajasthan, Punjab,
Haryana & NCR
East 49.4 mtpa West Bengal, Orissa,
Jharkhand &
Chattisgarh
West 57.6 mtpa Maharashtra &
Gujrat
Central 52.8 mtpa Madhya Pradesh &
Uttar Pradesh

Notable trends in the cement industry:
 Increasing presence of cement players
 Presence of small & mid-size cement players across regions is increasing, which helps to
diminish market concentration of industry leaders.
 A large number of foreign players have also entered the market owing to the profit margins,
constant demand and right valuation.
 Cement companies will go for the global listings either through the FCCB route or through
the GDR route.
 Tie – up with overseas
 India has joined hands with Switzerland to reduce energy consumption & develop newer
methods in the country for more efficient cement production, which would help India meet
its rising demand for cement in the infrastructure sector.
 Housing for All
 Under Union Budget 2017-18, US$ 3.42 billion has been allocated to achieve government's
mission of 'Housing for All by 2022. The scheme will be extended to 600 districts.
 In the Budget 2016, the GOI allocated a total of USD8.22 billion for the development of
roads & highways of India, bracing the cement industry of India.
 Housing sector is considered to drive the cement industries in India largely, which held
nearly 67 per cent of the total cement consumption in India.
Strategies adopted:
 Adoption of cement instead of Bitumen: The Government of India has decided to adopt
cement instead of bitumen for the construction of all new road projects because cement is
more durable & cheaper to maintain than bitumen in the long run.
 Increase in Clean Energy Cess: The Schedule Rate of Clean Energy Cess, levied on coal is
being increased from INR 100 per tonne to Rs. 300 per tonne. The increase in the clean energy
cess may lead to rise of power and fuel cost in the cement companies.
 Ready-mix concrete: Companies are trying to develop a niche market for RMC (Ready Mix
Concrete). Penetration of RMC has been low at about 8 per cent per cent (USA: 88 per cent;
China: 33 per cent; Brazil: 32 per cent) because retail sales comprise mostly of bag cement.
 Mergers & Acquisitions: In January 2017, JSW Cement bought 35.6 per cent stake in Shiva
Cement, for an estimate amount of US$ 14.42 million.

Strong demand drivers in the near term:
 Housing growth
 The Housing segment accounts for a major portion of the total domestic demand for cement
in India.
 Real estate market is expected to grow at a CAGR of 11.6 per cent over 2011–20, with the
market expected to reach USD180 billion by 2020.
 Growing urbanisation, an increasing number of households and higher employment are
primarily driving the demand for housing, accounting for 67 per cent of the total
consumption.
 Initiatives by the government are expected to provide an impetus to construction activity in
rural & semi urban areas through large infrastructure & housing development projects
respectively.
 Infrastructure growth
 The government is strongly focused on infrastructure development to boost economic
growth & is aiming for 100 smart cities.
 It plans to increase investment in infrastructure to USD1 trillion in the 12th Five Year Plan
(2012–17), compared with USD514 billion under the 11th Five Year Plan (2007–12).
 Infrastructure projects such as Dedicated Freight Corridors as well new & upgraded
airports & ports are expected to further drive construction activity.
 The government intends to expand the capacity of the railways & the facilities for handling
& storage to ease the transportation of cement & reduce transportation costs.
 Commercial real estate growth
 The government is strongly focused on infrastructure development to boost economic
growth.
 It plans to increase investment in infrastructure to USD1 trillion in the 12th Five Year Plan
(2012–17), compared with USD514 billion under the 11th Five Year Plan (2007–12).
 Infrastructure projects such as Dedicated Freight Corridors as well as new & upgraded
airports & ports are expected to further drive construction activity.
 The government intends to expand the capacity of the railways & the facilities for handling
& storage to ease the transportation of cement & reduce transportation costs.
 Government Initiatives towards New Schemes
 Initiatives by the new government such as housing for all, smart cities, Swachh Bharat
campaign, infrastructure spending, concrete roads initiative & an increase in allocation of
funds to states are likely to see a positive impact on the industry in the next 3-6 months.
 The government’s recent focus on road projects & an increase in state allocations will drive
infrastructure & housing demand that will indeed drive the market for cement industry.
 Projects like smart cities & Atal Mission for Rejuvenation & Urban Transformation
(AMRUT) is expected to lead a surge in the demand for cement.
 Development in Metro, Roads, Airports
 The metro rail projects in Mumbai, Bangalore, Hyderabad, Jaipur & the expansion phase
in Delhi drives cement demand.

 Airports modernisation across major cities will also expand demand for cement industry.
 The latest development in the Ahmedabad Metro Rail Project has also driven the cement
demand largely.
 Construction sector is in the full boom in India due to increasing infrastructure-based
developments coupled with continuous efforts being taken by the government. The
government has allocated US$9.65 billion for the road sector in the budget of 2017-18.
 Urbanisation and industrialisation development in the country
 The new urban development mission will focus on development of 500 cities having
population of more than 100,000 & some cities of religious & tourist importance.
 Infrastructure is a priority for the government’s economic policy; funding from private as
well as public sectors is set to increase sharply in the near term that would anticipate the
demand of cement industry in India.
Housing sector lead in cement demand:

 Demand for cement is highly correlated with cyclical activities like construction &
development.
 Housing sector accounts for a significant 67 per cent of the total cement demand (USA: 22 per
cent; China: 25 per cent; Brazil 56 per cent).
 Real estate market is expected to grow at a CAGR of 17.2 per cent during 2011–15 to USD126
billion. It is anticipated to reach USD180 billion by 2020.
 The rapidly increasing real estate industry in India is expected to push the demand for cement:
 Rising population & growing urbanisation drive residential real estate demand.
 Rising income levels are leading to higher demand for luxury projects.
 Demand for affordable housing is growing in order to meet the demand from lower income
groups.
 Commercial real estate demand will be driven by growth in IT/ITeS sector & organised retail.
Investment in infrastructure is driving sector’s growth:
 Investment in infrastructure is the main growth driver for the cement industry.
 The NITI Aayog estimates total infrastructure spending to be about of 9 per cent of GDP
during the 12th Five Year Plan (2012-17), up from 7.2 per cent during the previous plan
(2007-12).
 India’s investment in infrastructure is estimated to double to about USD1 trillion during
the 12th Five Year Plan (2012–17) compared to the previous plan.

COMPANY ANALYSIS
Introduction and background of Wonder Cement Ltd.:
Wonder Cement Limited was incorporated on 26th day of August 2005. It is a cutting-edge cement
manufacturing company with an ambition and passion to establish itself as a leading player in the
industry. Enriched with the heritage of R.K. Marble, a leading name in the marble industry, the
corporate culture of the Company is built on the values and ethos of quality, trust and transparency.
An emphasis on technological superiority enables the Company to differentiate its offering through
impeccable quality and effective communication.
Wonder Cement Limited is the first Company in India to set up a first of its kind fully automated
plant and has raised the benchmark a few notches above for all the existing and new entrants. The
Company invested in the state-of-the-art German technology and were one of the first to introduce
new standards of automated quality control. The first cement plant of the Company is located in
Nimbahera, District Chittorgarh, in Rajasthan and has a capacity to produce 3.25 Million Tons per
annum. Within two years of commencement of the First Plant, the Company have started work on
expansion to double the capacity. With an extensive network of dealers, the Company endeavour
to earn a place in the premium segment of the market. The Company has come a long way and
have always strived to cross the thin line between realities and dreams. Since dreams and
possibilities arise with every new beginning, Wonder Cement's Moto and promise to the society is
Ek Perfect Shuruaat. Wonder Cement Limited is committed to serve the communities in the
vicinity of its operations with the aim to improve community welfare in tandem with Company’s
progress.
Corporate profile:
Wonder Cement is a cutting-edge cement manufacturing company with an ambition to establish
itself as a leading player in the industry. Enriched with the heritage of R.K. Marble, a leading name
in the marble industry, our corporate culture is built on the values of quality, trust and transparency.
An emphasis on technological superiority enables us to differentiate our offering through
impeccable quality and effective communication. With an extensive network of dealers, we
endeavour to earn a place in the premium segment of the market.
Our cement plant, located in Nimbahera, District Chittorgarh, in Rajasthan, has a capacity to
produce 6.75 Million Tons per year. The state of the art manufacturing unit was established in
technical collaboration with ThyssenKrupp and Pfeiffer Ltd. of Germany, the world leaders in
cement technology, and it produces cement at par with international standards. Special efforts were
took to ensure that the plant upholds the latest environmental norms and with the help of a reverse
air bag house, ESP and a number of nuisance bag filters, the plant remains clean & dust free.
Wonder Cement has ambitious plans to further expand its current capacity to 10 Million tons by
setting up a third production line for which land and layouts are ready.
2

Vision of the company:
1. The Company desire to make enduring contributions to social development as a
valued and trusted member of society by enriching people's life and making social
contributions.
2. To ensure economic growth with ecological and social responsibility.
3. To imbibe the best corporate practices at the factory - promoting a clean and green
environment and fostering a work culture comparable to the best in the industry.
Mission or focus of the company:
1. Eradicating hunger, poverty and malnutrition, promoting preventive health care and
sanitation including contribution to the Swachh Bharat Kosh set-up by the Central
Government for the promotion of sanitation and making available safe drinking
water;
2. Promoting education including special education and employment enhancing
vocation skills especially among children, women, elderly and differently able and
livelihood enhancement projects;
3. Promoting general equality, empowering women, setting up homes and hostels for
women and orphans; setting up old age homes, day care centres and such other
facilities for senior citizens and measures for reducing inequalities faced by socially
and economically backward groups;
4. Ensuring environmental sustainability, ecological balance, protection of flora and
fauna, animal welfare and agroforestry, conservation of natural resources and
maintaining quality of soil, air and water including contribution to the Clean Ganga
Fund set-up by the Central Government for rejuvenation of river Ganga;
5. Protection of national heritage, art and culture including restoration of buildings
and sites of historical importance and works of art; setting up public library;
promotion and development of traditional art and handicrafts;
6. Measures for the benefit of armed forces veterans, war widows and their
dependents;
7. Training to promote rural sports, nationally recognized sports, Paralympic sports
and Olympic sports;
8. Contribution to the Prime Minister's National Relief Fund or any other fund set up
by the Central Government for socio-economic development and relief and welfare
of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities
and women;
9. Contributions or funds provided to technology incubators located within academic
institutions which are approved by the Central Government;
10. Rural Development Projects;
11. Slum area development.

Additional information:
Corporate Social Responsibility
RK Marble Group transformed Bhatkotri, a small village in Nimbahera, Rajasthan, into a township
along with its modern cement plant that was set up in 2012. ICR visited this Wonder Cement
facility to understand the specialities of the plant and infrastructure. Part of the RK Marble Group,
Wonder Cement is a greenfield project, a fully automated plant with world-class technology,
anchored by a group of experienced entrepreneurs from the house of the Patni’s, better known as
the marble family in the country. Built with a cutting - edge technology, this state-of-the-art project
has made its footprint in the burgeoning market of cement industry in the country within a short
span of three years. It is the only plant in North India and among the few in India that is fully
automated with the latest world-class technology from ThyssenKrupp and Pfeiffer, a German
technology major. The project was commissioned in April 2012 with an installed capacity of 3.25
million tonne per annum (mtpa) of cement. ¨This plant was conceptualised in 2010 and built in
record time of 18 months, whereas normal period to construct similar plant, according to
consultants and major companies, is 28-32 months. We completed the project in 18 months for
clinkerisation and 21 months for cement production, -says SM Joshi, President - Works, Wonder
Cement.
A futuristic plant Wonder Cement is a plant of 21st century, fully automated with the latest German
technology and quality control by Automated Po-Lab (Robotic Lab) with AQCNET Software. The
plant is centrally controlled and there are various technological features that are hallmarks of the
latest technical developments. There are various other features, which are the hallmarks of the
latest technology in the international market. Raw material acquisition and refining, considered
the most important stages in cement production, are carried out by VRM technology, supplied and
installed by Pfeiffer while ThyssenKrupp for processing and clinker grinding has done equipment.
Latest packaging technology has been also installed at the plant. Other auxiliary equipment have
been sourced from the best vendors in the industry. ¨When the plant was being conceptualised, our
Chairman wanted to give the best product out of the facility. Therefore, we selected machinery
from ThyssenKrupp and Pfeiffer, Germany, ¨ Joshi explains.
Vivek Patni, Director, Wonder Cement, says, ¨When we were conceptualising this plant, we kept
all provisions for modernisation and future expansions. Our infrastructure is suitable for supporting
additional capacity. While planning the infrastructure, we were having consultants for architecture
and landscaping. You can see the results here. We have very well planned buildings, roads, and
landscaping which is difficult to find in other cement manufacturing facilities. Raw materials
mining Wonder Cement has an installed capacity of 3.25 mtpa of cement, for which 3.75-mtpa
ROM (Run-Of-Mine) limestone is required. The company has two mining leases known as
Bhatkotri lime stone mines. The total area of mines is 7.4093 sq. km. In the mines, there are more
than 506 million tonne proved reserves and more than 25 million tonne probable reserves. The
total mineable reserves are more than 477 million tonne.
Open cast mining is done in both the mines. Chittorgarh area in Rajasthan is known for its superior
quality lime stone deposits, possessing high lime content that gives high early strength and ultimate
long-term strength. Another characteristic feature of this lime stone is low alkali, low magnesia
and low chloride contents which are highly desirable parameters for concrete durability. Crushing
and screening ROM up to maximum feed size of 1.1x1.0x1.0 cu m is dumped in crusher dump
hopper. Speed regulated apron conveyor below the dump hopper feed this material to grizzly

feeder. The -80 mm material goes to the screening plant and +80 mm material is fed to impactor
having the capacity of 1,600 tonnes per hour. Impactor reduces the size to 75 mm. In screening
plant, -10 mm material (mainly containing clay) is separated and rejected. Rest +10 mm material
is again mixed with crusher main product. This mixed material is stored in surge bin. From surge
bin, this material is fed to limestone stacker through apron conveyor and belt conveyors. For better
blending, the material is stacked in layers in yard with the help of stacker. Pile formation takes
place in Chevron method. And online quality control by cross belt analyser, which is the world´s
best Combi CBA having CNA technology also, which is introduced in India for the first time.
Approximately 93-95 per cent of materials, limestone and marl, is used from captive mines for the
preparation of raw mix for manufacturing the desired quality of clinker. The other additives (5-7
per cent) used after pre-blending by stacker and reclaimer to control the moduli values in the mix.
To get consistent quality of in process material, pre-blending equipment are installed for each raw
material. Raw material grinding the state-of-the-art technology adopted at the plant consists of
vertical roller mill of Pfeiffer, Germany, for grinding raw material to achieve the optimum
fineness, and controlled particle size distribution of raw material particles. The capacity of the raw
mill is 550 tph.
After the complete process, the finely ground raw material is collected in a set of cyclones installed
after the mill. Through air slides below multiclones, the product is transported to silo with the help
of elevator. The dust-laden air after multiclones is de-dusted in the bag house. Coal grinding for
grinding of petcock/coal, again there is a vertical roller mill having capacity of 35 tph. The
operation of this mill is same as in the raw mill. The only difference is to have a constant watch
over the mill outlet temperature to avoid any explosion and dust-laden gases are de-dusted in bag
house. Pyro processing Wonder Cement plant has a 75 m long kiln having diameter of 5 m for
manufacturing OPC clinker supplied by Polybius ThyssenKrupp. The clinker is produced by
burning the finely ground raw meal known as kiln feed in a rotary kiln. The temperature in the
burning zone is usually 1,400-1,450oC and the residence time in the kiln is 15 minute. The process
taking place in the kiln system consist of a temperature dependent decomposition of the raw
material minerals according to the nature, followed by a recombination of the liberated free
reactive oxides forming clinker minerals. The overall chemical reactions transforming the mixture
of raw material minerals in the raw meal to the mixture of the clinker minerals in the clinker is
endothermic (heat consuming). The clinker formed in kiln is cooled inside the polytrack cooler
from 1,450oC to around 110oC and then it is stored in clinker silo having a storage capacity of
45,000 tonne. Cement grinding the final manufacturing stage at a cement plant is the grinding of
cement clinker from the kiln, mixed with gypsum, into a fine powder.
It is important to obtain a certain specific surface for the finished cement so that hydration can take
place and concrete strength develops within a reasonable time. In addition to the specific surface,
also the particle size distribution influences the strength properties especially the late strength. At
WCL, cement-grinding circuit is having roll press with closed circuit single chamber ball mill. At
the outlet of the grinding mill, the ground material flows through an outlet grate to dynamic
separator by mechanical conveyors, for fine separation as grinding system is closed circuit mill.
Grinding in close circuit makes it possible to obtain a very finely ground cement. Another
advantage is that it is easy to change from one grade of cement to another grade by adjustment of
the separator speed. Cement produced in closed circuit mill has narrow particle size range and the
quantity of 3 to 30 micron fraction is more in comparison to open circuit mill, resulting in higher
late strength. The mill ventilation air carries a small portion of the fine material, which is de-dusted
in a highly efficient bag-house. Finished product with separator air is passed through multi-clones

where finished product is separated and stored in cement silos with the help of mechanical
conveyors.
Organisation Structure:
1) Chairman
2) Vice Chairman
3) Director
4) Managing Director
5) Joint Managing director
6) President
 HR Head > Corporate Head
 VP Finance > Finance Manager
 VP Marketing > Marketing Manager > DGM Marketing
 VP Sales > Regional Sales Manager > District Sales Officer
 VP Operations > Operations Manager
 VP Branding > Branding Manager
The company presently has more than 1500 employees working under it.
Cement packaging:
Cement is stored in four cement silos, extracted, bagged by three electronic roto packers of
capacity 240 tonnes per hour each with an accuracy of +50 gm and -0 gm, and transported by
trucks. Quality product Wonder Cement produces three grades of cement: OPC 43, 53 and PPC.
Joshi claims, “We produce much higher strength cement than what is required by BIS. Our 53
grade cement is giving a strength of 68-70 Mpa against a requirement of 53 Mpa. The 53 Mpa
strength is required after 28 days of setting time. Our cement crosses 53 Mpa in eight days and
reaches 68-70 Mpa in 28 days. This type of performance is not available in any other cement in
India. This is achieved due to very narrow and uniform particle size distribution of our cement and
exceptionally good quality control system.¨ The market The present capacity of the plant is 3.25
million tonne per annum (1,80,000 bags per day). The company has a wide network of 2,500
dealers who keep and maintain the supply chain in Rajasthan, Gujarat, Madhya Pradesh, Haryana,
Uttar Pradesh, Delhi and Punjab. The company has a team of over 500 dedicated professionals.
“We sell 50 per cent of our production in Rajasthan itself. Remaining 50 per cent is sold in the
other states adjoining Rajasthan. Right now we are focusing on in and around Rajasthan because
the best realisation is available at shortest distance. If you start sending cement to longer distances
the realisation will be less”, observes Patni. Captive power To ensure uninterrupted power supply
to its plant in Nimbahera, the company has installed a captive power plan of 40 MW. The power
plant uses petcock as fuel sourced from IOC´s Baroda plant and Jamnagar refineries of Essar and
Reliance. ¨We always use petcock as fuel for our power plant that is economical. In this area, it is
almost 25-30 per cent cheaper compared to other fuels, ¨ Joshi informs. Keen on Green The plant
has complied with the norms of the environment ministry. The entire design of the plant is based
on the latest environment norms, with the help of reverse air bag house and ESP and a number of
nuisance bag filters installed having emission of much below the permissible unit. That enables

the plant to be clean and dust free. An ecological balance has been maintained through massive
plantation and development of ornamental gardens in the areas around the plant site. A fair measure
of company´s concern on environmental issue is seen in the plantation of 55,000 tree saplings in
50 hectare in two years against a target of 75 hectare in 20 years. Expansion plans Wonder Cement
has drawn up an ambitious expansion plan to double the production capacity in the next two years.
The company has plans to expand its current capacity to 10 million tonne in due course by setting
up a second and third production line, for which land and layouts are ready. “Our second line is
under execution with an expenditure of about Rs 1,200-1,400 crore. It will be ready by end of
2015”, Joshi sums it. Company has it website www.wondercement.com where it has also provided
an option called cement calculator that gives an approximate estimation of the requirement of
cement by the consumer by providing some inputs. Also shows the ratio of cement and sand.
Products offered:
Company offers two types of cement:
1. Portland Pozzolana Cement (PPC)
A fully automated, dry manufacturing process using state of the art technology under strict quality
assurance at all stages of manufacturing with the help of the “ROBOTIC (POLAB)” system
prepares Portland Pozzolana Cement, “Product of Future”. PPC is manufactured by inter-grinding
well-burnt OPC Clinker with gypsum and pozzolanic materials like power-station fly ash or
siliceous earths.
Applications:
 Plaster and brick work
 Marine work
 Mass concrete work
 RCC in residential and constructions
2. Ordinary Portland Cement (OPC)
A fully automated, dry manufacturing process using state of the art technology under strict quality
assurance at all stages of manufacturing with the help of the “ROBOTIC (POLAB)” system
prepares ordinary Portland cement. The product comes in a range of specifications to suit various
conditions and applications such as dry-lean mixes, general-purpose ready-mixes and even high
strength pre-cast and pre-stressed concrete. OPC is available in OPC-43 Grade & OPC-53 Grade.
Applications
 High raise building
 Commercial and Industrial Complexes
 Roads ,Runways, Bridges and Flyovers
 Heavy defence structures
Cement manufacturing technology:
The manufacturing process of cement consists of the mixing, drying and grinding of limestone,
clay and silica into a composite mass. The mixture is then heated and burnt in a pre-heater and kiln

to be cooled in an air cooling system to form clinker, which is the semi-finished form. This clinker
is cooled by air and subsequently ground with gypsum to form cement.
Portland cement is made by grinding a mixture of limestone, clay and other corrective materials,
viz. Laterite, Bauxite, etc. Essential constituents mainly are Lime, Silica, Alumina and Iron Oxide.
The process of manufacturing consists of grinding of raw materials into fine powder, mixing them
and burning in a kiln at about 1400 deg. C. The resultant product is called Clinker. Clinker is
cooled, ground to fine powder with gypsum. The end product is cement.
There are three types of processes to form cement - the wet, semi-dry and dry processes. In the
wet/semi-dry process, raw material is produced by mixing limestone and water (called slurry) and
blending it with soft clay. In the dry process technology, crushed limestone and raw materials are
ground and mixed without the addition of water.
The dry and semi-dry processes are more fuel-efficient. The wet process requires 0.28 tons of coal
and 110 kWh of power to manufacture one ton of cement, whereas the dry process requires only
0.18 tons of coal and 100 kWh of power. Coal and power costs account for 35 per cent of the total
cement production costs. With 95 per cent of the total capacity based on the modern dry process
technology, the Indian cement industry has become more cost efficient. Top companies in the
cement industry match quite well with world standards in terms of energy (thermal energy Kcal/kg
of clinker - India 665 against 690 of Japan) and pollution norms (SPM of 40 in India against 20 in
Japan).
The main raw materials used in the cement manufacturing process are limestone, sand, shale, clay,
and iron ore. The main material, limestone, is usually mined on site while the other minor materials
may be mined either on site or in nearby quarries. Another source of raw materials is industrial by-
products. The use of by-product materials to replace natural raw materials is a key element in
achieving sustainable development.

Cement manufacturing process:
1. Raw Material Preparation-Blasting and Crushing of Limestone:
Mining of limestone requires the use of drilling and blasting techniques. The blasting techniques
use the latest technology to ensure vibration, dust, and noise emissions are kept at a minimum.
Blasting produces materials in a wide range of sizes from approximately 1.5 meters in diameter
to small particles less than a few millimetres in diameter. Material is loaded into trucks for
transportation to the crushing plant. Through a series of crushers and screens, the limestone is
reduced to a size less than 100 mm and stored until required. Depending on size, the minor
materials (sand, shale, clay, and iron ore) may or may not be crushed before being stored in
separate areas until required.
2. Grinding:

The raw materials are next ground together in a raw mill. Passing into the raw mill, the mixture
is ground to raw mix. It is important that the raw mix contains no large particles in order to
complete the chemical reactions in the kiln, and to ensure the mix is chemically homogenous.
In the wet process, each raw material is proportioned to meet a desired chemical composition
and fed to a rotating ball mill with water. The raw materials are ground to a size where the
majority of the materials are less than 75 microns. Materials exiting the mill are called "slurry"
and have flow ability characteristics.
3. Blending and Homogenization:
This slurry is pumped to blending tanks and homogenized to ensure the chemical composition
of the slurry is correct. This slurry is conveyed to the blending system by conventional liquid
pumps. Following the homogenization process, the slurry is stored in tanks until required. In
the case of wet process, water is added to the raw mill feed, and the mill product is a slurry with
moisture content usually in the range of 25-45% by mass. In the case of a dry process, the raw
mill also dries the raw materials, usually by passing hot exhaust gases from the kiln through the
mill, so that the raw mix emerges as a fine powder. This is conveyed to the blending system by
conveyor belt or by a powder pump.
4. Homogenization:
Calcium and silicon are present in order to form the strength-producing calcium silicates.
Aluminium and iron are used in order to produce liquid ("flux") in the kiln burning zone. The
liquid acts as a solvent for the silicate-forming reactions, and allows these to occur at an
economically low temperature. Insufficient aluminium and iron lead to difficult burning of the
clinker, while excessive amounts lead to low strength due to dilution of the silicates by
aluminates and ferrites. Very small changes in calcium content lead to large changes in the ratio
of alite to belite in the clinker, and to corresponding changes in the cement's strength-growth
characteristics. The relative amounts of each oxide are therefore kept constant in order to
maintain steady conditions in the kiln, and to maintain constant product properties.
In the dry process, each raw material is proportioned to meet a desired chemical composition
and fed to either a rotating ball mill or vertical roller mill. The raw materials are dried with
waste process gases and ground to a size where the majority of the materials are less than 75
microns. The dry materials exiting either type of mill are called "kiln feed". The kiln feed is
pneumatically blended to ensure the chemical composition of the kiln feed is well homogenized
and then stored in silos until required.
5. Pyro processing - Formation of clinker:
Whether the process is wet or dry, the same chemical reactions take place. Basic chemical
reactions are: evaporating all moisture, calcining the limestone to produce free calcium oxide,
and reacting the calcium oxide with the minor materials (sand, shale, clay, and iron). This results
in a final black, modular product known as "clinker" which has the desired hydraulic properties.
In the wet process, the slurry is fed to a rotary kiln, which can be from 3.0 m to 5.0 m in diameter
and from 120.0 m to 165.0 m in length. The rotary kiln is made of steel and lined with special
refractory materials to protect it from the high process temperatures. Process temperatures can
reach as high as 1450oC during the clinker making process.
In the dry process, kiln feed is fed to a preheater tower, which can be as high as 150.0 meters.
Material from the preheater tower is discharged to a rotary kiln with can have the same diameter

as a wet process kiln but the length is much shorter at approximately 45.0 m. The preheater
tower and rotary kiln are made of steel and lined with special refractory materials to protect it
from the high process temperatures.
Regardless of the process, the rotary kiln is fired with an intense flame, produced by burning
coal, coke, oil, gas or waste fuels. Preheater towers can be equipped with firing as well. The
rotary kiln discharges the red-hot clinker under the intense flame into a clinker cooler. The
clinker cooler recovers heat from the clinker and returns the heat to the pyro processing system
thus reducing fuel consumption and improving energy efficiency. Clinker leaving the clinker
cooler is at a temperature conducive to being handled on standard conveying equipment.
6. Finish Grinding and Distribution:
The black, nodular clinker is stored on site in silos or clinker domes until needed for cement
production. Clinker, gypsum, and other process additions are ground together in ball mills to
form the final cement products. Fineness of the final products, amount of gypsum added, and
the amount of process additions added are all varied to develop a desired performance in each
of the final cement products. Each cement product is stored in an individual bulk silo until
needed by the customer. Bulk cement can be distributed in bulk by truck, rail, or water
depending on the customer's needs. Cement can also be packaged with or without colour
addition and distributed by truck or rail.
Pricing:
Pricing of the cement products in wonder cement is done based on the production cost occurred
and the profit is fixed according to the pricing policies by the government.

SWOT analysis:
Interpretation:
 Wonder Cement has good strengths as it has fully automated plant and having the name of
RK Marble associated with it.
 At the same time, it also have weaknesses that could be dealt with suggestions like
expanding its business pan India as soon as possible to gain a higher market share in the
cement industry.
 It needs to create a stronger sense of brand awareness among common masses with better
marketing strategies and advertisements.
STRENGTHS:
1. Wonder Cement is one of the biggest
cement manufacturers in Rajasthan India.
2. It has successful operations in Rajasthan,
Gujarat and Madhya Pradesh.
3. Sister concern of leading marble company
RK Marbles.
4. Having a good corporate Social
Responsibility policy.
5. One of the best automatic machinery
system and plant of its kind in Asia.
WEAKNESSES:
1. It operates only in Rajasthan, so it does not
have major presence other parts of the
country.
2. Brand awareness of Wonder cement is
lesser than other Indian Brands of Cement
industry.
3. It does a lot lesser branding activities when
compared to famous Indian brands.
OPPORTUNITIES:
1. It can expand its operations pan India.
2. It can also look for mergers and
acquisitions with regional leaders in different
Indian markets.
3. Government policies would also be pro
manufacturing as it wants to promote Indian
Manufacturing Sector, so this would surely
help Wonder cement to grow in the country.
THREATS:
1. It would face strong competition from
Indian Players when it tries to expand
operation pan India.
2. There is a high risk involved in expanding
into other parts as the brand awareness is
lesser right now. So it should work on creating
pan India brand awareness and then enter
other markets.
3. Increased operating costs & reducing
marketing share.
SWOT

 Its threat is from big players like Ultratech, ACC, India Cements, JK Brands, Ramco,
Prism, Birla, etc. that have been in the cement industry for quite a while now and have a
very strong and steady hold on the market share across India.

ROLES AND RESPONSIBILITIES
Wonder cement is a company with ace working environment and with responsible and humble
employees.
As I started my internship in the marketing department of the company, I was introduced to the
seniors under whom I will be working and was made familiar with several roles and
responsibilities. My colleagues and superiors helped me understand my work and helped me in
understanding the working environment of the company.
My roles in the organisation:
1. I was given a work to find the gaps in the marketing techniques used in the field; I
had to go to the areas provided by the regional marketing head and then find if there
are any cement dealers, retailers or a construction site.
2. There, my job was to know what brand they are dealing in or using and why they
have not considered in dealing in or using Wonder Cement.
3. If the dealer or contractor is already dealing in/using Wonder Cement then the
survey was not carried any further as I had clear instructions.
4. I also had a senior guiding me and sharing his experience and teaching me how to
deal with the dealers and contractors in an efficient manner.
My responsibilities:
1. To see how many cement dealers are there in the specified regions and the brand
they are dealing in.
2. In addition, the responsibility of collecting information of the dealers I have
interviewed.
3. To conduct a survey needed for my project and give the report to the organization.
4. To suggest any ideas that would help the company in improving its marketing
tactics or corporate social responsibilities.
Contribution to the organisation:
1. Marketed the product and convinced the dealers to buy the products that will
contribute to the sales.
2. While being in the field, I observed that some dealers are brand loyal and just cannot
be attracted only by giving discounts or promotional offers to them.
3. Made analysis on the behaviour of consumers and dealers and found that a
consumer buys what a dealer sells. There is not much role of a said marketing
technique that a company can use to lure more customers. The main sales drivers
are the dealers which a cement company should retain however possible.
4. Suggested to have more links with contractors and masons by creating relation with
them as word of mouth and their recommendation also creates a strong impact on
the customers’ decision to buy a particular cement brand.
3

5. Some of the dealers I interviewed, in the past were dealing in Wonder Cement. The
reason for their switching were various, main ones being:
a) The incentives were not up to the mark as compared to the other companies’.
In addition, the company presently runs no loyalty programmes to retain the
existing dealers.
b) Sales target of a particular dealer for trade cement was hindered by non-
trade cement, which should be only provided by the company if the
requirement of the cement for a particular construction is too large.
Companies such as Ultratech, ACC, Prism, OCL and Ramco follow the rule
that only if the average requirement of cement for a particular construction
site is around 400-500 tons, non-trade cement will be provided; otherwise
trade cement should be used.
Consumers preferred non-trade cement as it reduced their overall costing
for cement used.

LITERATURE REVIEW
1. Research Title: “Impact of External Influencer Recommendation in Purchase Behaviour
Process of Selection of Cement for Construction” by Arijit Maity, (Commerce Department,
University of Calcutta, India)
Source: International Journal of Business and Management Invention
ISSN (Online): 2319 – 8028, ISSN (Print): 2319 – 801X
www.ijbmi.org Volume 3 Issue 8ǁ August. 2014 ǁ PP.01-11
Abstract:
The multiple cement brands available in the market make the brand selection a difficult process.
The present study focuses on studying the impact of influencer recommendation in customer
purchase behaviour process in selecting cement for construction. This will give an insight into the
market and try to identify the major influencer that really influences the customers during cement
purchase. Cement customers are broadly classified into 3 segments- trade customer i.e. dealer/ sub
dealer/ wholesaler, retail customer which is individual house builders and non-trade customer
which includes industrial and government infrastructure and. Exploratory research was done
initially with a sample size of 10 which include individual home builders, masons, engineer,
architect, contractors, builders and dealer to get an insight into the problem, different segment of
customer, buying process and the variables that influence the choice of cement. Research
instrument used in collecting primary data was the Questionnaire. It was prepared and pretested
with a sample size of 10 that was further modified and administered with a sample of 50 retail
customers or individual homebuilder, 100 distribution channel partners and 50 non-trade
customers. Hypothesis testing was carried out to summarize the major influencer that influenced
decision-making process. The study was exploratory, was descriptive in nature, and involved
collection of secondary and primary data based on survey.
Findings:
There are major influencers that influence the purchase decision of customer is recommendation
of Engineer and mason exerts a greater amount of influences to the customer in making the choice
of cement. So from the first objective the impact of influencer in basic cement purchase behaviour
process across various customer segments. It is found that in case of individual house builder,
mason is found to be the decision maker in both individual houses and flats. But, in case of
individual house builder, the engineer/ architect/ local cement dealer has a say in selecting cements.
However, in most cases, mason decides the cement because he is believed to possess technical
expertise. It is found that word of mouth, Self-decision, contractors and friend and relative has less
or no impact in purchase behaviour of cement in case of cement customer who are building a brand
new house or remodelling their houses by building new rooms and renovation. In case of Non-
trade customer, Engineer has a greater influence than to Local cement dealer and then to Word of
mouth and then to mason. Self-decision, contractors and friend and relative has less or no impact
in purchase behaviour of cement in case of Non Trade cement customer who are building concrete
infrastructure.
4

However, even if they are professionals, our customers are not equally educated about cement. As
said before, depending on their occupation in their organization, customers are more or less aware
of the specificities of cement. The factors that appeared to be the most decisive are:
1) Quality of the cement: that is approval by the engineers, and sometimes good feedback from
the market and the field. It is the first and major criteria to consider the offer of cement.
2) It is the only way to be sure that the cement will respect the BIS, and gives guarantees on the
consistency of the product and the trust they can have for the company. For some customers it
is also a value for their customers.
3) Although brands are a major factor for customers, very low difference is done between the
identity of brands, and only memories from mass marketing helps them associate brands to an
image.
4) When the suppliers are already known, the quality of the delivery based on former experience
is definitely one of the most decisive factors
5) In case of dealer, engineer has a greater influence than to WOM and then to mason and then to
local cement dealer. Self-decision, contractors and friend and relative has less or no impact in
selling behaviour of cement dealer.
2. Research Title: “A study on the progress of Indian cement industry” by Dr. P. Krishna Kumar,
Professor, CEO & Secretary, Nehru Group of Institutions, Dr. S. Franklin John, Professor and
Principal, Nehru College of Management, Coimbatore & Ms. S. Senith, Assistant Professor and
Research scholar, Nehru College of Management, Coimbatore.
Abstract:
The study was designed to investigate the the progress of Indian cements industry since 1991, in
terms of its growth in installed capacity, production, exports, and value additions; In detail the
research methodology used for the study that has focused on the past, present and the future
performance of Indian Cement Industry (ICI) at the macro level and the Chettinadu Cement
Corporation Limited (CCCL) at the micro level as a case firm. The study purely relies on secondary
data. The secondary data were collected for a period of fifteen years (1991-92 to 2005-06) from
the database maintained and made available by several organizations viz., Cement Manufacturers
Association, Export Import Bank of India, Centre for Monitoring Indian Economy etc. for the
purpose of effective periodical analysis. In order to know the progress of ICI, annual time series
data for the six variables were studied for trend, cyclical variation and random variation, as
seasonal variation was not observable in the annual data. The estimated trend equations were
evaluated for their goodness of fit and predictive power and found valid to draw inferences. The
values of the six variables were projected to the next five years. Estimated values were adjusted
for the likely effects of cyclical variations (c) the reliability of predicted values were evaluated
with the help of forecasting error. In the end of the study implications and conclusion were
provided.
Findings:
1) Installed capacity of ICI grew by 3.70 percent (CGR) to 160..24 m.t in 2005 -06.
2) Production of cement increased at the(CGR) rate of 3.21%

3) The Capacity utilization in terms percentage improved slowly (CGR = 0.53%) with inter year
ups and downs.
4) Export had never exceeded 4.24 % of production during the period of study.
5) Profit of ICI increased from Rs. 9606 million in 1991-92 to Rs. 20115 million in 2005-06, but
the inter year variances were found large (CV= 46 per cent) and exhibited a cyclical pattern –
roughly a three year cycle.
6) ICI has recorded significant increase marking nearly a fivefold increase in its net worth during
the period of study.
7) The shareholders’ interest could be seen in earning per share. It was just Rs. 45.30 in 1991-92
and increased over the years to peak at Rs.192.00 in 2004-05, only in two years i.e., in 2002-
03 and 2005-06 there were marginal falls as compared to the rest of years of study.
8) By all the six parameters, the Indian cement industry had shown a good progress during the
period of study. The policy of total decontrol of the industry and also liberalisation of the
economy had helped the industry to grow in terms of physical and financial variables.
9) The progress of the industry and the case firm in terms of the selected variables were
compared.
10) For the industry, the differences in the growth of many firms – large and small-had been
averaged to find out the growth rates in the aggregate. The CCCL with its better growth rates,
emerged as one among the leaders in the industry.
11) Though the industry received the benefit of total decontrol in 1989, and the advantages of free
market operations made available by the new economic policy of globalization and
liberalization of the economy since 1991-92, it had taken few years to get adjusted to the new
business-environment especially to the disappearance of protectionist policy supports.

DATA ANALYSIS
Research Topic: A study on the factors that influence a dealer /retailer’s
decision in selecting a cement brand for selling.
Introduction:
The selected topic refers to the factors, which attract a dealer, retailer or a contractor to be specific
towards a brand of cement. A consumer’s decision in selecting a cement brand is dependent on
what the contractor recommends or word of mouth as a normal person thinks that all the cement
brands are almost the same. In addition, the consumer of cement is more inclined towards which
cement brand is in trend- is used the most.
An individual, when thinking to deal in a particular brand of cement, he thinks of which brand will
be giving more returns, followed by sales, brand name, brand that consumers prefer to buy, etc.
and a consumer is led by his culture, his subculture, his social class, his membership groups, his
family, his personality, his psychological factors, etc. Moreover, an average consumer thinks that
a bag of cement that is sold at a premium price is better than those sold at low price. Here, the
marketing department has to step in, like in case of Bangur Cement – “Sasta Nahi, Sabse Acha.”
When a cement is sold at a lower price to increase the completion, their sales target increase to
recover the costs incurred in marketing activities and production operations.
By identifying and understanding the factors that influence a dealer’s customers, brands have the
opportunity to develop a strategy, a marketing message (Unique Value Proposition) and
advertising campaigns more efficient and more in line with the needs and ways of thinking of their
target consumers, a real asset to better meet the needs of its dealers and increase sales. Dealers’
selling behaviour refers to the selling of a product by a specific brand by its authorized dealer to
the ultimate consumer and maintaining the brand name associated with the dealer over stretched
periods. Many factors, specificities and characteristics influence the dealer in what he is dealing
and he has to understand the consumers’ point of view while they buy. In addition, dealers look
for brands that provide them with extra income or incentives, discounts, loyalty rewards and so
on. A dealing decision is the result of each one of these factors.
Statement of the problem:
The research is being undertaken for the specific purpose of finding out the factors that influence
a dealer, retailer or a contractor’s decision to use a particular cement brand.
Objectives of research problem:
 Determine the main factors influencing a dealer for selection of a brand to deal in.
 Determine what drives their loyalty towards the brand they are dealing in.
 Determine their viewpoint towards where the company’s marketing strategies fall short.
Scope of the study:
5

This study aims to study all the dealers and retailers in the Udaipur area who are presently not
dealing in Wonder Cement, and includes some contractors at some of the live construction sites
where no usage of Wonder Cement was found.
Methodology:
Research is based on the primary data collected first-hand in the form of a survey, having the
individual dealers, retailers and contractors as the sample. Samples were from the suburban area
of Udaipur district of Rajasthan state. Survey was conducted by providing a questionnaire to the
stated individuals.
Type of research design used:
1. Exploratory Research Design - Exploratory Research was primarily executed to provide insight
into the requirements of formation of questionnaire and an understanding of the problem from a
small sample.
2. Descriptive Research Design - It was used to describe the characteristics of relevant consumer
groups.
Limitations:
 The research was carried within the city and any other dealers and retailers outside the city
limits are excluded.
 The research excludes dealers’ viewpoint on Wonder Cement itself as it focuses on why
they have opted for other cement brands.
 The research focuses on dealer/ retailer’s perception than the perception of the end
consumers’.
 The research does not studies the dealer/ retailer’s own strategies in maximizing the store’s
sales.
Samples:
• Sample Size : 50
• Sample Frame : City and Suburban
• Sample Unit : Udaipur
• Constraints : Time & Number of Respondents
• Survey : Questionnaire
Data Collection:
Primary Source:
The data was collected from the dealers of the cement brands other than Wonder Cement that were
the major targeted samples for the purpose of this research from the Udaipur Suburban Area. All
the respondents were randomly chosen. The data was also collected from hardware stores and
masons to get an insight into the cement industry and current trends in the industry.

Secondary Source:
The secondary data has been collected from the company and the company’s website.
The web has been a major source of collection of secondary data where from data regarding the
Indian Cement Industry was collected concerning a brief history, government regulations. The data
collected gives us a view of the major players in the industry and their current competitive position
in the market.
Sample Size and Design:
A sample of 50 people was selected based on convenience. They were contacted based on random
sampling.
Research Period:
Research work was performed for 2 weeks.
Research Instrument:
This work is carried out through self-administered questionnaires. The questions included were
dichotomous and offered multiple choices.

Q.1. Brand(s) you are dealing in?
Interpretation: Ultratech having the highest number of dealers, has 9 dealers among the
interviewed sample, followed by JK Lakshmi Cement & Ambuja Cement having 7 dealers and
Shree Cement having the third highest number of dealers having 6 dealers.
Inference: Ultratech, as the reports of IBEF state, has the highest number of dealers in North
division of the cement industry in India.
0 1 2 3 4 5 6 7 8 9 10
Ambuja Cement
Bangur Cement
Binani Cement
Birla Cement
Coromandel King Cement
JK Cement
JK Lakshmi Cement
JK Super Cement
Lafarge Cement
Rockstrong Cement
Sanghi Cement
Shree Cement
Ultratech
No. of Dealers
Brands

Q.2. Have you been dealing in the same brand(s) from the start?
Interpretation: 31 of the interviewed respondents said they were not dealing in the same brand
from the start, while 20 respondents said that they had been dealing in the same brand from the
start.
Inference: Majority of the respondents had switched the brands since the time they have dealt in
cement.
31
20
0
5
10
15
20
25
30
35
No Yes
NumberofRespondents
Yes/ No

Q.3. Why have you preferred dealing in this brand?
`
Interpretation: 25 of the respondents preferred to deal in the brand due to high demand and more
income. In addition, 24 respondents thought that the brand they are dealing in provides higher
quality products than any other. Attractive promotional offers have also been a significant factor,
which was chosen by 18 of the respondents. Dealers were less concerned about the discount
received and least about providing more choice to customers.
Interference: Dealers are more concerned about providing quality products to customers and
making significant amount of profit for the efforts to sell a brand to customers.

Q.4. Has any of your customer asked you if you deal in Wonder Cement?
Interpretation:
84% respondents said that they have had customers who have asked dealers whether they deal in
Wonder Cement of not.
Interference:
43 respondents said that they have had customers who asked them if the dealers keep Wonder
Cement or the nearby availability of Wonder Cement, which draws a conclusion that customers
who have never bought Wonder Cement are ready to try Wonder Cement.

Q.5. Are you willing to deal in Wonder Cement?
Interpretation: 60% of the respondents agreed to deal in Wonder Cement, while 40% of them
denied dealing in Wonder Cement.
Interference: 31 dealers agreed to deal in Wonder Cement as more of their customers have been
asking them about Wonder Cement.

Q.6. According to you, what are the main factors that provoke customers to be one brand
specific?
Interpretation: 37 of the dealers told that most customers go for a particular brand due to its brand
name, followed by higher quality offered (33). In Addition, customers also look for overall
reduction of the purchase cost of the customer (28). Mason’s recommendation also plays a major
role for customers to be a brand specific.
Inference: Majority of the customers go for brand name, as according to them, bigger the brand,
higher is the quality. In addition, mason’s recommendation and reducing the purchase cost plays
a major role in the final decision of customer to select a brand. Settling time of the cement and
discounts were not that important and promotional offers were the least important for a customer
to select a cement brand.

Q.7. According to you, which is the most bought cement brand?
Interpretation: According to the respondents, Ultratech Cement was the highest bought cement
(17), followed by JK Super cement (12) and then Wonder Cement (9).
Interference: According to the sales report of Ultratech, JK Super & Wonder Cement, the three
were the highest selling cement brands in Rajasthan in the year 2016-2017 respectively.
1
1
8
12
3
1
16
9
0 2 4 6 8 10 12 14 16 18
Ambuja Cement
JK Cement
JK Lakshmi Cement
JK Super Cement
Shree Cement
UItratech
Ultratech
Wonder Cement
No. of Respondents
Brands

Q.8. Which technique is normally used by the brand you are dealing in to lure more
customers?
Interpretation: 66% of the respondents said that most brands use advertising as a tool to attract
more customers, followed by quality assurance at 64%, word of mouth at 48%, cheaper rates 36%
and promotional offers & heavy discount on bulk orders at 16%.
Inference: Brands rely more on brand awareness and promoting their quality standards through
assuring their product’s quality. Word of mouth also plays a major role in attracting more
customers as customers also rely on the experiences others have had.

Q.9. What are the most common complaints you receive regarding the cement brand that
you have sold?
Interpretation: 62% of the respondents said that while making a purchase decision, customers
often tend to compare the brand with other brands. 42% of the customers had problems related to
pricing strategy of the brand, followed by quality at 16%. Some dealers also reported that
customers had issues regarding to the application of the cement, which stood at 14%. The quantity
issues regarding the cement were the lowest.
Inference: Consumers of cement are becoming more aware as now they are able to differentiate
between various cement brands and are able to compare the prices of various cement brands with
what all functions the respective cement offers. In addition, consumers prefer higher quality
products from the existing cement companies.

Q.10. What irritates you the most in the brand you are dealing in?
Interpretation: 40% dealers said about high rates of premium cement brands and 40% said that
no adequate discounts are given to them while dealing. 30% brands were also not advertising their
product up to dealers’ expectations. In addition, 28% responded that companies lag behind with
mediocre promotional offers, while quality and some other factors remained at bay.
Inference: Due to high rates of premium cement brands like JK Cements, Wonder Cement,
Ultratech, dealers and retailers find it hard to reach the sales target and earn sufficient profits/
discounts without adequate help from companies’ promotional offers and advertising strategies.

Q.11. Do you feel that customers are loyal to the brand that you are selling?
Interpretation: 38% respondents said about having regular customers at their dealership places
while same percentage of respondents said that customers are not loyal at all. Remaining 24%
dealers said while they have customers that keep switching cement brands.
Inference: If a company wants to attract and retain more customers, they have to initiate more
loyalty programs such as the more you purchase, the more rewards in the form of cashbacks and
discounts you earn.

Q.12. According to you, tick the factors that would most influence your decision to sell a
particular cement brand.
Interpretation: 62% respondents said that quality is the main factor among the factors that could
influence their decision to sell a cement brand, 56% respondents said about having discounts as
their main factor to deal in a cement brand as that would increase their income and 26 respondents
chose both price as well as service as their influencing factor, while promotional offers were the
least considered.
Inference: Dealers want to sell those cement brand which offers the highest quality, more income
at affordable price to the customers and provides proper services to the dealers.

Q.13. What is your take about the satisfaction in dealing in the current cement brand?
Interpretation: 58% dealers, retailers and contractors were satisfied in dealing or using in their
current cement brands. 34% were not satisfied at all and a mere 8% of the respondents were in a
neutral state of satisfaction.
Inference: A majority of dealers was satisfied while dealing in the current cement brand, while a
significant of 34% were not satisfied at all. The reason for their dissatisfaction included low
discounts, no promotional offers, mediocre dealer loyalty programmes, etc. 8% of dealers were in
a very neutral state as most of them also had some other businesses and considered cement dealing
as a side business.

Q.14. Is the response time by the company to the complaints satisfactory?
Interpretation: 92% of the respondents were satisfied with the response time for any complaints
towards the company. Only 8% of the respondents were dissatisfied with the companies’ response
time.
Inference: Most of the dealers and retailers said that they are satisfied with the companies’
response time towards any complaints registered. They also added that companies tend to solve
the problem within the same day, in fact, within a few hours. Since, cement industry is very
customer sensitive, companies have to solve the problems of their dealers and retailers, as they are
the main channel for the distribution of their product to the ultimate consumers.

FINDINGS
By this research, we found out that:
 Ultratech, as the reports of IBEF state, has the highest number of dealers in North division
of the cement industry in India.
 Dealers are more concerned about providing quality products to customers and making
significant amount of profit for the efforts to sell a brand to the end consumers.
 Majority of the customers go for brand name, as according to them, bigger the brand, higher
is the quality. In addition, mason’s recommendation and reducing the purchase cost plays
a major role in the final decision of customer to select a brand.
 Dealers want to sell those cement brand which offers the highest quality, more income at
affordable price to the customers and provides proper services to the dealers so that dealers
are satisfied with the companies’ feedback on any complaints registered.
 Consumers of cement are becoming more aware as now they are able to differentiate
between various cement brands and are able to compare the prices of various cement brands
with what all functions the respective cement offers. In addition, consumers prefer higher
quality products from the existing cement companies.
 If a company wants to attract and retain more customers, they have to initiate more loyalty
programs such as the more you purchase, the more rewards in the form of cashbacks and
discounts you earn.
 Due to high rates of premium cement brands like JK Cements, Wonder Cement, Ultratech,
dealers and retailers find it hard to reach the sales target and earn sufficient profits/
discounts without adequate help from companies’ promotional offers and advertising
strategies.
 Since, cement industry is very customer sensitive, companies have to solve the problems
of their dealers and retailers, as they are the main channel for the distribution of their
product to the ultimate consumers.
6

RECOMMENDATIONS
 Company should tie up with more and more contractors by giving them a significant
amount of commission to promote Wonder Cement by word of mouth or by
recommendations.
 Company should look after their sales of trade and non-trade cement so that the latter do
not hinder the former’s policies and targeted sales as a brand’s name is built by the trade
cement, and not by non-trade.
 Many cement companies like ACC, Ramco, Ultratech, etc. have initiate dealers’ loyalty
programmes. In these programmes, dealers get rewards in monetary terms at the end of
each year depending on the amount of cement sold by a particular dealer. Wonder Cement,
too, should start a loyalty programme to make the dealers more loyal towards the sales
policies of the company.
 The marketing and promotional strategies of the company should be rapidly evolved to
develop new business and to attract more number of customers.
 The company should also start cement production outside its home state to explore new
markets and gain a significant market share in other states as well.
 In addition, cement is also being sold online which started as a new trend recently. To gain
a significant share in the online market, the company should develop a strong logistics
network in the existing market.
7

CONCLUSION
The research can be concluded by saying that:
 The cement market is very prone to
 Quality assurance
 Brand name
 Advertising
 Pricing strategies
 Word of mouth
 Mason’s recommendation
 The consumers have become more aware of the usage of cement. Some prefer cheaper
cement, some go for a particular brand, and some look for quality. They now do not just
rely on a source of information, but rather collect as much information as possible to know
the best cement suited for their usage.
 Cement dealers always look to maximize their profits either by incentives or by discounts
received. Companies like Ultratech and ACC Cements have been able to retain their
dealers, not by bonds, but by very skilfully crafted dealer loyalty programmes, which the
company can also develop to retain the existing dealers.
 A company should always retain their dealers and retailers as they will always be the main
channel for the distribution of the company’s product. In addition, cement dealers in a
region will always remain limited on average. So if a cement dealer is lost, he may have
been started dealing in another brand, which is a loss in sales for the company.
 When a dealer does not gets any help from the company in reaching the sales target, the
dealer may switch the brand he is dealing in. so a company should always assist the dealers
and retailers to reach their sales target.
 More active a company’s advertisement and marketing campaigns are the more customers
it can attract. Therefore, the company should be redesigning its promotional campaigns
accordingly.
8

BIBLIOGRAPHY
 International Cement Review, USGS Mineral Research Report, TechSci Research
 Cement Manufacturers’ Association (CMA), TechSci Research
 Department of Industrial Policy & Promotion, Office of the Economic Advisor, TechSci
Research
 CMA, CMIE Database, TechSci Research
 TechSci Research, Ministry of External Affairs (Investment & Technology Promotion
Division)
 www.ibef.org
 www.wondercement.com
 www.google.co.in
9

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