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LOVELY PROFESSIONAL UNIVERSITY DEPARTMENT OF MANAGEMENT

Report on Summer Training [Title]

BRAND LOYALITY OF J&K CEMENTS (JEHLUM BRAND)

Submitted to Lovely Professional University

In partial fulfillment of the Requirements for the award of Degree of Master of Commerce

Submitted by: Rouf Ahmad Reshi Regd. No. 11000861

DEPARTMENT OF MANAGEMENT LOVELY PROFESSIONAL UNIVERSITY PHAGWARA (YEAR 2009-10)

Lovely Professional University,Punjab.

CERT IFICATE

This is to certify that ROUF Ahmad Reshi student of Lovely Professional University, Punjab has worked on project BRAND LOYALITY OF J&K CEMENTS (JEHLUM BRAND). He has successfully completed his project work in partial fulfillment of Master of commerce (M.COM) from Lovely Professional University, Punjab. This project report is the record of the students own efforts under the able supervision and guidance of Mr.Mandeep Singh

Mr. Mandeep Singh Signature of director Signature of Guide

Date: Place:

Date: Place:

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ACKNOWLEDGEMENT

First of all I would like to thank Almighty Allah for giving me the ability to take this project. It was an honour and privilege for me to work for J&K CEMENTS LTD. I am greatly thankful and extend my deepest sense of gratitude to Mr. _FAROOQ AH.WANI ( Managing Director J&K Cements Ltd.), who most willingly extended his cooperation and gave me an opportunity to work for his organization. I would also like to extend my deep regards towards all the faculty members of Lovely Professional University , Punjab for helping me to complete my project successfully. I take this opportunity to thank Mr Mandeep Singh for his role as a philosopher, friend and guide. I also thank my uncle Dr Abid Nabi (Professor in physics) ,Brother Gowher Ahmad Reshi, Sister Rohi and Naseer Ah Reshi(elder brother) for helping me to complete this project on time. At last but not the least my sincere gratitude towards my Dad Mr Abdul Aziz Reshi, my Mother Raja Banoo and all nears and dears and the respondents with whom I interacted and communicated during the survey for filling up the questionnaire helping me in the successful completion of the Survey Report on Brand Loyality Of J&K Cements Srinagar.

With Regards From

Rouf Ahmad Reshi

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TABLE OF CONTENT

S.NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Chapters Abstract Introduction to topic Executive summary Industrial profile Company profile & other information Objectives of research Research methodology Data interpretation and analysis Findings Suggestions Conclusion Bibliography & References

Page 5 6 9 10 26 48 49 50 66 68 69 70

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ABSTRACT

Successfully building, managing, and tracking the brand equity of brands are main goals of brand management. The brand strategies are flexible to fit the increasing competitive market and customers brand knowledge. It is more and more difficult to maintain the customers brand loyalty. Thus, it becomes crucial to understand brand building processes more thoroughly in order to help brands succeed. Keller (1993) proposed a detailed conceptual model of customer-based brand equity. However, this framework did not indicate the processes of brand loyalty. Keller (1993) defines customer-based brand equity as the differential effect of brand knowledge on consumer response to the marketing of the brand. He developed a framework of brand knowledge which can be divided into two components, brand awareness and brand image (a set of brand associations). Brand awareness consists of brand recognition and brand recall performance. Brand image is defined as perceptions about a brand as reflected by the brand associations held in consumer memory. Brand associations can be classified into three categories: attributes, benefits, and attitudes. Attributes are distinguished according to how directly they relate to product or services. One kind of attributes is product-related attributes such as the ingredients or functions of product or service. The other kind of attributes is non-product-related attributes such as price information, packaging or product appearance information, user imagery, and usage imagery. Benefits are the personal value consumers attach to the product or service attributes, for instance, functional benefits, experiential benefits, and symbolic benefits. Brand attitudes are defined as consumers overall evaluations of a brand. Furthermore, Keller (1993) also discussed the favorability, strength and uniqueness in the conceptual framework of the customer-based brand equity.

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INTRODUCTION TO TOPIC

Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product or service or other positive behaviors such as word of mouth advocacy Brand loyalty is more than simple repurchasing, however. Customers may repurchase a brand due to situational constraints (such as vendor lock-in), a lack of viable alternatives, or out of convenience Such loyalty is referred to as "spurious loyalty". True brand loyalty exists when customers have a high relative attitude toward the brand which is then exhibited through repurchase behavior. This type of loyalty can be a great asset to the firm: customers are willing to pay higher prices, they may cost less to serve, and can bring new customers to the firm. For example, if Joe has brand loyalty to Company A he will purchase Company A's products even if Company B's are cheaper and/or of a higher quality. An example of a major brand loyalty program that extended for several years and spread worldwide is Pepsi Stuff. Perhaps the most significant contemporary example of brand loyalty is the dedication that many Mac users show to the Apple company and its products. From the point of view of many marketers, loyalty to the brand - in terms of consumer usage - is a key factor:

Content

1 Usage rate 2 Loyalty 3 Factors Influencing Brand Loyalty 4 Industrial Markets 5 Portfolios of Brands 6 Market Inertia

Usage rate
Most important of all, in this context, is usually the 'rate' of usage, to which the Pareto 80:20 Rule applies. Kotler's 'heavy users' are likely to be disproportionately

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important to the brand (typically, 20 percent of users accounting for 80 percent of usage -- and of suppliers' profit). As a result, suppliers often segment their customers into 'heavy', 'medium' and 'light' users; as far as they can, they target 'heavy users'.

Loyalty
A second dimension, however, is whether the customer is committed to the brand. Philip Kotler, again, defines four patterns of behaviour: 1. Hardcore Loyals - who buy the brand all the time. 2. Softcore Loyals - loyal to two or three brands. 3. Shifting Loyalty - moving from one brand to another. 4. Switchers - with no loyalty (possibly 'deal-prone', constantly looking for bargains or 'vanity prone', looking for something different).

Factors Influencing Brand Loyalty


It has been suggested that loyalty includes some degree of pre-dispositional commitment toward a brand. Brand loyalty is viewed as multidimensional construct. It is determined by several distinct psychological processes and it entails multivariate measurements. Customers' Perceived value, Brand trust, Customers' satisfaction, Repeat purchase behaviour and Commitment are found to be the key influencing factors of brand loyalty.Commitment and Repeated purchase behaviour are considered as necessary conditions for brand loyalty followed by Perceived value ,satisfaction and brand trust .

Industrial Markets
In industrial markets, organizations will regard the `heavy users' as `major accounts', to be handled by senior sales personnel and even managers; whereas the `light users' may be handled by the general salesforce or by a dealer.

Portfolios of Brands
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Andrew Ehrenberg, then of the London Business School said that consumers buy 'portfolios of brands.They switch regularly between brands, often because they simply want a change. Thus, 'brand penetration' or 'brand share' reflects only a statistical chance that the majority of customers will buy that brand next time as part of a portfolio of brands they favour. It does not guarantee that they will stay loyal. Influencing the statistical probabilities facing a consumer choosing from a portfolio of preferred brands, which is required in this context, is a very different role for a brand manager; compared with the - much simpler - one traditionally described, of recruiting and holding dedicated customers. The concept also emphasises the need for managing continuity.

Market Inertia
On the other hand, one of the most prominent features of many markets is their overall stability - or inertia. Thus, in their essential characteristics they change very slowly, often over decades - sometimes centuries - rather than over months. This stability has two very important implications. The first is that if you are a clear brand leader you are especially well placed in relation to your competitors, and should want to further the inertia which lies behind that stable position. This will, however, still demand a continuing pattern of minor changes, to keep up with the marginal changes in consumer taste (which may be minor to the theorist, but will still be crucial in terms of those consumers' purchasing patterns - markets do not favour the over-complacent.). But these minor investments are a small price to pay for the long term profits which brand leaders usually enjoy. The second, and more important is that if you want to overturn this stability, and change the market (or significantly change your position in it), then you must expect to make massive investments to succeed. Even though stability is the natural state of markets, however, sudden changes can still occur and the environment must be constantly scanned for signs of these.

EXECUTIVE SUMMARY
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The American Marketing Association (AMA) states, Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives". Marketing is a wide and heavily interconnected subject with extensive publications. It is also an area of activity infamous for re-inventing itself and its vocabulary according to the times and the culture. There are many different definitions of marketing. Consider some of the following alternative definitions: The all-embracing function that links the business with customer needs and wants in order to get the right product to the right place at the right time The achievement of corporate goals through meeting and exceeding customer needs better than the competition The management process that identifies, anticipates and supplies customer requirements efficiently and profitably Marketing may be defined as a set of human activities directed at facilitating and consummating exchanges The primary objective of the research was to know the Brand Loyalty of Jhelum Brand but during the survey following things I have kept in mind. 1. To know the preferences of consumers towards various brands of cement manufactured in Kashmir. 2. To know that who recommends the consumer to buy the particular brand. 3. To knw where from consumer prefer to buy the cement. 4. To study which are the most important attributes that consumer look for in cement. 5. To identify the customer grievances if any. 6. To know the problem faced by consumer while using Jhelum Brand cement

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INDUSTRIAL PROFILE

Bricklayer Joseph Aspdin of Leeds, England first made Cement early in the 19th century by burning powdered limestone and clay in his kitchen stove. By this crude method he laid the foundation for an industry which annually processes literally mountains of limestone, clay, cement rock, and other materials into a powder so fine it will pass through a sieve capable of holding water. Cement is so fine that one pound of cement contains 150 billion grains. Cement, the basic ingredient of concrete, is a closely controlled chemical combination of calcium, silicon, aluminum, iron and small amounts of other ingredients to which gypsum is added in the final grinding process to regulate the setting time of the concrete. Lime and silica make up about 85% of the mass. Common among the materials used in its manufacture are limestone, shells, and chalk or marl combined with shale, clay, slate or blast furnace slag, silica sand, and iron ore. Each step in manufacture of Cement is checked by frequent chemical and physical tests in plant laboratories. The finished product is also analyzed and tested to ensure that it complies with all specifications. Cement Industry in India is on a roll at the moment. Driven by a booming real estate sector, global demand and increased activity in infrastructure development such as state and national highways, the cement industry has witnessed tremendous growth. Production capacity has gone up and top cement companies of the world are vying to enter the Indian market, thereby sparking off a spate of mergers and acquisitions. Indian cement industry is currently ranked second in the world.

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World cement production World cement production is about 2.27 billion metric tonnes

China (40+ % of world production) India USA

Global bigwigs in cement La Farge, France Holcim, Switzerland Cemex, Mexico Italcementi, Italy Heidelberg Cement, Germany

INTRODUCTION TO INDIAN CEMENT INDUSTRY The origins of Indian cement industry can be traced back to 1914 when the first unit was set-up at Porbandar with a capacity of 1000 tonnes. Today cement industry comprises of 125 large cement plants and more than 300 mini cement plants. The Cement Corporation of India, which is a Central Public Sector Undertaking, has 10 units. There are 10 large cement plants owned by various State Governments. Cement industry in India has also made tremendous strides in technological up gradation and assimilation of latest technology. Presently, 93 per cent of the total capacity in the industry is based on modern and environment-friendly dry process technology. The induction of advanced technology has helped the industry immensely to conserve energy and fuel and to save materials substantially. Indian cement industry has also acquired technical capability to produce different types of cement like Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland Cement, White Cement etc. Some of the major clusters of cement industry in India are: Satna (Madhya Pradesh), Chandrapur (Maharashtra), Gulbarga (Karnataka), Yerranguntla (Andhra Pradesh), Nalgonda (Andhra Pradesh), Bilaspur (Chattisgarh), and Chandoria (Rajasthan). Lovely Professional University,Punjab. 11

CEMENT PRODUCTION IN INDIA Following China, Japan and the US, India the fourth largest cement-producing country in the world. In 1996, around 115 large cement plants within 57 cement companies and about 300 small plants produced 76.2 million tonnes1 (Mt) cement per year. Ownership is mostly private (85% of installed capacity) and centralized for the large plants with four production houses controlling most units. This has led to financial and administrative integration of different factories. Installed capacity increased considerably between 1970 and 1996, particularly in the last few years following complete deregulation of the cement sector. `While in the two decade period from 1970 to 1990 total installed capacity rose by around 47 million tonnes from 17 million tonnes to 64 million tonnes, within only 6 years between 1990 and 1996 it increased by another 41 million tonnes to 105 million tonnes of installed capacity. Production, however, did not increase accordingly. Due to a high frequency of power failures, shortage of coal, inadequate availability of wagons for rail transportation, limited availability of furnace oil etc. capacity utilization decreased steadily from as high as 90% in 1978 to a low point of 67% in 1980-81. Following policy changes towards deregulation in the early and late 1980s capacity utilization reimproved to 82% in 1991-92. Yet, since then it has again shown a decreasing trend to 72% in 1996-97. THE INDIAN CEMENT INDUSTRY NOW! Cement industry in India is currently going through a consolidation phase. Some examples of consolidation in the Indian cement industry are: Gujarat Ambuja taking a stake of 14 per cent in ACC, and taking over DLF Cements and Modi Cement; ACC taking over IDCOL; India Cement taking over Raasi Cement and Sri Vishnu Cement; and Grasim's acquisition of the cement business of L&T, Indian Rayon's cement division, and Sri Digvijay Cements. Foreign cement companies are also picking up stakes in large Indian cement companies. Swiss cement major Holcim has picked up 14.8 per cent of the promoters' stake in Gujarat Ambuja Cements Lovely Professional University,Punjab. 12

(GACL). Holcim's acquisition has led to the emergence of two major groups in the Indian cement industry, the Holcim-ACCGujarat Ambuja Cements combine and the Aditya Birla group through Grasim Industries and Ultratech Cement. Lafarge, the French cement major has acquired the cement plants of Raymond and Tisco. Italy based Italcementi has acquired a stake in the K.K. Birla promoted Zuari Industries' cement plant in Andhra Pradesh, and German cement company Heidelberg Cement has entered into an equal joint-venture agreement with SP Lohia Group controlled Indo-Rama Cement. Issues concerning Cement Industry

High Transportation Cost is affecting the competitiveness of the cement industry. Freight accounts for 17% of the production cost. Road is the preferred mode for transportation for distances less than 250km. However, industry is heavily dependant on roads for longer distances too as the railway infrastructure is not adequate.

Cement industry is highly capital intensive industry and nearly 55-60% of the inputs are controlled by the government. There is regional iM.Comlance in the distribution of cement industry. Limestone availability in pockets has led to uneven capacity additions. Coal availability and quality is also affecting the production.

TYPES OF CEMENT MANUFACTURED IN INDIA The types of cement in India have increased over the years with the advancement in research, development, and technology. The Indian cement industry is witnessing a boom as a result of which the production of different kinds of cement in India has also increased. By a fair estimate, there are around 11 different types of cement that are being produced in India.

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Various types of cement produced in India are:


Clinker Cement Ordinary Portland Cement Portland Blast Furnace Slag Cement Portland Pozzolana Cement Rapid Hardening Portland Cement Oil Well Cement White Cement Sulphate Resisting Portland Cement

In India, the different types of cement are manufactured using dry, semi-dry, and wet processes. In the production of Clinker Cement, a lot of energy is required. It is produced by using materials such as limestone, iron oxides, aluminum, and silicon oxides. Among the different kinds of cement produced in India, Portland Pozzolana Cement, Ordinary Portland Cement, and Portland Blast Furnace Slag Cement are the most important because they account for around 99% of the total cement production in India. The Portland variety of cement is the most common one among the types of cement in India and is produced from gypsum and clinker. The Ordinary Portland cement and Portland Blast Furnace Slag Cement are used mostly in the construction of airports and bridges. The production of white cement in the country is very less for it is very expensive in comparison to grey cement. In India, while cement is usually utilized for decorative purposes, marble foundation work, and to fill up the gaps between tiles of ceramic and marble. The different types of cement in India have registered an increase in production in the last few years. Efforts must be made by the cement industry in India and the government of India to ensure that the cement industry continues innovation and research to come up with more and more varieties in the near future.

1. Ordinary Portland Cement (OPC) Lovely Professional University,Punjab. 14

It is manufactured in the form of different grades, the most common in India being Grade53, Grade-43, and Grade-33. OPC is manufactured by burning siliceous materials like limestone at 1400 degree Celsius and thereafter grinding it with gypsum. Tata Chemicals Limited is a major producer of OPC Grade 43 and 53. The value of each of these grades of cement has been briefly mentioned below: Ordinary Portland Cement-Grade 43: Having been certified with IS 8112:1989 standards, Grade 43 is in high demand in India and is largely used for residential, commercial, and other building construction purposes. It has a compressive strength of 560 kg per square cm. Today OPC 43 is most widely available in Gujarat through an extensive distribution network.

Ordinary Portland Cement-Grade 53: Having been certified with IS1 2269:1987 standards; Grade 53 is known for its rich quality and is highly durable. Hence it is used for constructing bigger structures like building foundations, bridges, tall buildings, and structures designed to withstand heavy pressure. Expert opinions and directions from technicians and engineers are a must in this regard. With a good distribution network this cement is available most abundantly in Gujarat.

As such, Ordinary Portland Cement is used for quite a wide range of applications. Some of the Ordinary Portland applications are in pre-stressed concrete; dry-lean mixes, durable precast concrete, and ready mixes for general purposes. The chemical components of Ordinary Portland Cement are Magnesium (MgO), Alumina (AL2O3), Silica (SiO2), Iron (Fe2O3), and Sulphur trioxide (SO3). Some of the big names involved in OPC manufacture are Tata Chemicals, Ultratech Cement, and ACC cement. Ordinary Portland Cement is in great demand in India and will continue to be used in Indian infrastructural up gradation and other constructions.

2. Portland Pozzolana Cement (PPC)

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Portland Pozzolana Cement is manufactured by blending pozzolanic materials, OPC clinker, and gypsum either grinding them together or separately. Today Portland Pozzolana Cement is widely in demand for industrial and residential buildings, roads, dams, and machine foundations.

Pozzolana is an important ingredient in PPC which is commonly used in the form of:

Fly ash Volcanic ash Silica fumes Calcined clay

PPC is resistant to harsh water attacks and prevents the formation of calcium hydroxide at the time of cement setting and hydration. It withstands aggressive gases, thermal cracks, wet cracking, etc. The BIS quality specifications for Pozzolana materials used in PPC have been mentioned below:

Fly ash - IS 3812:1981 Calcined clay - IS 1344:1981

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. One of the top Indian brands of Portland Pozzolana is 'Shudh Cement' manufactured by Tata Chemicals Limited. Shudh cement has 5 percent of the market share and is available abundantly in Gujarat, penetrating all 3 - primary, secondary, and tertiary markets. Some of the other big names in the Portland Pozzolana manufacture are Ultratech, Ambuja, ACC cements, Star Cement, and Birla group. Portland Pozzolana Cement is highly popular in India and with many cement plants setting up jetties for transportation, initial costs would gradually decrease as well.

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3. Portland Blast Furnace Slag Cement

In recent years, there has been a significant growth in the production of Portland Blast Furnace Slag Cement and its sales have also increased considerably over the last few years. This has given a major boost to the Indian cement industry. The Slag Cement of the Portland Blast Furnace is a type of cement that is hydraulic and is manufactured in a blast furnace where iron ore is reduced to iron. The molten slag which is tapped is quickly drenched with water, dried, and then grounded to a fine powder. This fine powder that is produced is commonly known as the Portland Blast Furnace Slag Cement. The manufacture of Portland Blast Furnace Slag Cement requires 75% less energy than that needed for the production of the Portland cement. The low cost of production of Portland Blast Furnace Slag Cement makes it cheaper than Portland cement. It is for this reason that in recent years, the sales of Portland Blast Furnace Slag Cement have increased. Portland Blast Furnace Slag Cement has a typical light color and an easier 'finish' ability. Its concrete workability is better and it has a higher flexural and compressive strength. It is resistant to chemicals and also has more hardened consistency. This is the reason that Portland Blast Furnace Slag Cement is used in the construction of dams, bridges, building complexes, and pipes. The various raw materials required for the production of Portland Blast Furnace Slag Cement are:

Limestone Iron Ore Iron Scrap Coke

The major companies producing Portland Blast Furnace Slag Cement in India are:

J K Cement Lovely Professional University,Punjab. 17

Grasim Industries and Ultra Tech ACC

India Cement Ltd Gujarat Ambuja Cement Ltd

The major countries where Portland Blast Furnace Slag Cement is exported from India are:

South Africa UAE Sri Lanka Nepal Bangladesh Australia Doha-Qatar

The production and use of Portland Blast Furnace Slag Cement have increased over the years. The Indian government has undertaken several investments in the production of the Portland Blast Furnace Slag Cement so that its quality and durability can be improved.

4. Oil Well Cement

Oil Well Cement as the name suggests, is used for the grouting of the oil wells, also known as the cementing of the oil wells. This is done for both, the off-shore and on-shore oil wells. As the number of oil wells in India is increasing steadily, the sales of Oil Well Cement have also increased. This has boosted the Indian cement industry to a large extent. Oil Well Cement is manufactured from the clinker of Portland cement and also from cements that have been hydraulically blended. Oil Well Cement can resist high pressure as well as very high temperatures. Oil Well Cement sets very slowly because it has organic 'retarders' which prevent it from setting too fast. It is due to all these characteristics that it is used in the building of the oil wells where the pressure is around 20,000 PSI and the temperature is Lovely Professional University,Punjab. 18

around 500 degrees Fahrenheit. There are 3 grades of Oil Well Cements. Grades O is ordinary and is used commonly; HSR is high sulphate resistant; and MSR is moderate sulphate resistant. Each grade is used where it is applicable at a particular range of oil well sulphate environments, temperatures, pressures, and depths. Oil Well Cement has proved to be very beneficial for the petroleum industry due to its characteristics. For it is due to the Oil Well Cement that the oil wells function properly. The various raw materials required for the production of Oil Well Cement are:

Limestone Iron Ore Coke Iron Scrap

The major companies manufacturing Oil Well Cement in India are:


ACC Gujarat Ambuja India Cement Ltd. Grasim Industries and Ultra Tech J K Cement 5. Rapid Hardening Portland Cement

Rapid Hardening Portland Cement (RHPC) is a type of cement that is used for special purposes when a faster rate of early high strength is required. RHPC has a higher rate of strength development than the Normal Portland Cement (NPC). The Rapid Hardening Portland Cement's better strength performance is achieved by increasing the refinement of the product. This is the reason that its use is increasing in India.

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Rapid Hardening Portland Cement is manufactured by fusing together limestone (which has been finely grounded) and shale, at extremely high temperatures to produce cement clinker. To this cement clinker, gypsum is added in small quantities and then finely grounded to produce Rapid Hardening Portland Cement. It is usually manufactured using the dry process technology. Rapid Hardening Portland Cement is used in concrete masonry manufacture, repair work which is urgent, concreting in cold weather, and in pre-cast production of concrete. Rapid Hardening Portland Cement has proved to be a boon in the places where quick repairs are required such as airfield and highway pavements, marine structures, and bridge decks. The Rapid Hardening Portland Cement should be stored in a dry place, or else its quality deteriorates due to premature carbonation and hydration. As the Indian cement industry produces Rapid Hardening Portland Cement in large quantities, it is able to meet the domestic demand and also export to other countries. The cement industry in India exports cement mainly to the West Asian countries. The raw materials required for the manufacture of Rapid Hardening Portland Cement are:

Limestone Shale Gypsum Coke

The major companies producing Rapid Hardening Portland Cement in India are:

ACC Gujarat Ambuja J K Cement Grasim Industries Indian Cement Ltd. 6. Sulphate Resisting Portland Cement

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Sulphate Resisting Portland Cement (SRC) is a type of Portland cement in which the quantity of tricalcium alumiante is less than 5%. It can be used for purposes wherever Portland Pozzolana Cement, Slag Cement, and Ordinary Portland Cement are used. The use of Portland Sulphate Resisting Cement has proved beneficial, particularly in conditions where there is a risk of damage to the concrete from Sulphate attack. The use of Sulphate Resisting Portland Cement is recommended in places where the concrete is in contact with the soil, ground water, exposed to seacoast, and sea water. In all these conditions, the concrete is exposed to attack from Sulphate that are present in excessive amounts, which damage the structure. This is the reason that the use of the Sulphate Resisting Portland Cement have increased in India. The Sulphate Resisting Portland Cement should be kept in a place which is dry otherwise through premature hydration and carbonation the quality of cement deteriorates. The cement industry in India manufactures Sulphate Resisting Portland Cement in large quantities so that it is able to meet the domestic demand and also export to other countries as well. The Indian cement industry exports cement chiefly to the West Asian countries. The various uses of Sulphate Resisting Portland Cement are:

Underground and basements structures Works in coastal areas Piles and foundations Water and sewage treatment plants Sugar, chemical, and fertilizers factories Petrochemical and food processing industries

The raw materials required for the production of Sulphate Resisting Portland Cement are:

Coke Limestone Iron Ore Iron Scrap

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The major companies manufacturing Sulphate Resisting Portland Cement in India are:

ACC J K Cement Indian Cement Ltd Grasim Industries Gujarat Ambuja

Sulphate Resisting Portland Cement has proved beneficial for construction purposes in India due to its climatic conditions. The cement industry in India must take steps in order to ensure that its quality is improved and to ensure that it is readily available in the market. The Sulphate Resisting Portland Cement should be stored in a dry place, or else its quality deteriorates due to premature carbonation and hydration. As the Indian cement industry produces Sulphate Resisting Portland Cement in large quantities, it is able to meet the domestic demand and also export to other countries. The cement industry in India exports cement mainly to the West Asian countries. 7. White Cement

White Cement has registered growth in production and sale in India in the last few years. The White Cement sector has been growing at the rate of 11% per year. This has given the Indian cement industry a major boost. White Cement is much like the ordinary grey cement except that it is white in color. In order to get this color of the White Cement, its method of production is different from that of the ordinary cement. However, this modification in its production method makes White Cement far more expensive then the ordinary cement. The production of White Cement requires exact standards and so it is a product which is used for specialized purposes. White Cement is produced at temperatures that hover around 14501500 degrees Celsius. This temperature is more than what is required by the ordinary grey cement. As more energy is required during the manufacture of White Cement, it goes to make Lovely Professional University,Punjab. 22

it more expensive than the ordinary grey cement. White Cement is used in architectural projects the use of white cement has been specified. It is used in decorative works and also wherever vibrant colors are desired. White Cement is used to fill up the gaps between marble and ceramic tiles for a smoother and more beautiful finish. The various raw materials required for the production of White Cement are:

Limestone Sand Iron Ore Nickel Titanium Chromium Vanadium

The major companies producing White Cement in India are:


ACC J K Cement Gujarat Ambuja Cement Ltd. India Cement Ltd. Grasim Industries and Ultra Tech

The major countries where White Cement is exported from India are:

UAE Australia South Africa Sri Lanka Doha- Qatar Bangladesh Nepal

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8. Clinker Cement

Clinker Cement has registered a growth over the last few years in India. The Indian cement industry is growing at a rapid pace and this has given a major boost to the production and sale of Clinker Cement in India.

The cement industry in India is highly technologically intensive and as a result, the quality of clinker cement that is produced in India is of a very high grade and is often considered among the best in the world. The production of Clinker Cement requires a lot of energy because it needs to be manufactured at the temperature of around 1400-1450 degree Celsius. The various raw materials required for the production of Clinker Cement are:

Iron Ore Bauxite Clay Limestone Quartz

Clinker Cement in India is produced in such large quantities that it is able to meet the domestic demand and is also exported. In 2001- 2002, 1.76 million tons of clinker cement were exported. In 2002- 2003, that figure stood at 3.45 million tons, and in 2003- 2004 5.64 million tons of clinker cement was exported from India. This shows that the export of clinker cement from India has been increasing gradually but steadily. Clinker Cement is usually ground with calcium sulphate so that it becomes Portland cement. It is also ground with other ingredients to produce Pozzolanic Cement, Blast Furnace Slag Cement, and Silica Fume Cement. If Clinker Cement is kept in a dry condition, it can be stored for a long period of time without any loss of its quality. It is for this reason that Clinker Cement is preferred in the construction of houses, bridges, and complexes.

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The major companies producing Clinker Cement in India are:


ACC Gujarat Ambuja Cement Ltd. JK Cements Grasim Industries and Ultra Tech India Cements Ltd.

JAMMU & KASHMIR CEMENTS LTD

Jammu & Kashmir Cements limited (JKCL) is Jammu & Kashmirs foremost manufacturer of cement with a state-wide network of distributors. JKCL was started in year 1981 and started commercial production in August 1982. JKCL has been a pioneer and trend-setter in cement technology. JKCLs brand name JEHLUM is synonymous with cement and enjoys a high level of equity in the state market. Among the first companies in India to include commitment to environmental protection as a corporate objective, JKCL has won several prizes and accolades for environment friendly measures taken at its plants. The company has also been felicitated for its acts of good corporate citizenship.

Corporate profile

JKCL is J&Ks foremost manufacturer of cement. JKCL operations are spread throughout the state. It has a workforce of about 800 persons and a state-wide distribution network of over 24 main dealers. JKCLs research and development facility has a unique track record of innovative research and product development. Lovely Professional University,Punjab. 25

Since its inception in 1981, the company has been a trendsetter and important benchmark for the cement industry in respect of its production, marketing and personnel management processes. Its commitment to environment-friendliness, its high ethical standards in business dealings and its ongoing efforts in community welfare programmes have made JKCL a responsible corporate citizen. JKCL has made significant contributions to the nation building process by way of quality products, services and sharing its expertise.

In the 28 years of its existence, JKCL has been a pioneer in the manufacture of cement and a trendsetter in many areas of cement technology including improvements in raw material utilisation, process improvement, energy conservation and development of high performance concretes.

JKCLs brand name is synonymous with cement and enjoys a high level of equity in the state market. It is the one of the cement companies that figures in the list of Consumer Super Brands of India, and is the only company of the state which is the member of CMA (Cement Manufacturers Association of India).

Jammu & Kashmir Cements Ltd. (JKCL) is presently operating two rotary kilns each of 300 TPD capacities in their cement plant at Khrew, which is located 24 km. from Srinagar.

Jammu & Kashmir Cements Ltd. is setting up additional production line of 600 TPD capacity Cement plant at the existing plant site with latest Japanese Technology for Pyro- Processing.

The company's business is supported by a powerful, in-house research and technology backup facility - the only one of its kind in the state cement industry. This ensures not just consistency in product quality but also continuous improvements in products, processes, and application areas.

JKCL has rich experience in mining, being the largest user of limestone, and it is also one of the principal users of coal. As the largest cement producer in state, it is the foremost user of the road transport network services for inward and outward movement of materials and products.

JKCL is among the first companies in state to include commitment to environmental protection as one of its corporate objectives. The company installed pollution control Lovely Professional University,Punjab. 26

equipment and high efficiency sophisticated electrostatic precipitators for cement kilns, raw mills, coal mills, power plants and coolers. The factory has state-of-the art pollution control equipment and devices.

JKCL demonstrates the practices of being a good corporate citizen undertaking a wide range of activities to improve the living conditions of the under-privileged classes living near its factories.

Jammu & Kashmir Cements Ltd. (JKCL) are presently operating two rotary kilns each of 300 TPD capacities in their cement plant at Khrew, which is located 24km. from Srinagar. Jammu & Kashmir Cements Ltd. (JKCL) propose to set up an additional most modern rotary kiln with environment friendly and latest technology cement manufacturing line of 600 TPD capacity at same location, at village Khrew, Tehsil Pampore, District Pulwama (J&K). Jammu & Kashmir Cements Ltd. (JKCL) is committed to provide clean & green environment. Jammu & Kashmir Cements Ltd. (JKCL) a company of Jammu & Kashmir Govt. In addition, Jammu & Kashmir Cement is planning to enhance cement production in the state for which they propose to go for an additional new line for cement production near village Khrew. Tehsil Pampore, District Pulwama (J & K), which presently operating two rotary kilns each of 300 TPD capacities in their cement plant at Khrew, Jammu & Kashmir Cements Ltd. (JKCL) is planning to commission an additional new production line having a capacity of 600 tones per day cement production capacity at the same location, at Village Khrew.

PRODUCTS.

Ordinary Portland Cements:


43 Grade Cement (OPC & PPC Grade)
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JKCL is the most commonly used cement in all constructions including plain and reinforced cement concrete, brick and stone masonry, floors and plastering. It is also used in the finishing of all types of buildings, bridges, culverts, roads, water retaining structures, etc. What is more, it surpasses BIS (Bureau of Indian standards) Specifications for 43 grade OPC &43 grade PPC) on compressive strength levels. JKCL is marketed in specially designed 50 kg bags. 80% of the total production goes to government construction areas and rest 20% is provided for private purposes.

PRODUCT QUALITY

Product Development has always been an important activity at JKCL, arising out of a focus on quality and process improvement. It has been a constant partner, driving research, innovation and evaluation. JKCL has effectively pledged its reputation as the market leader in the quality of cement. Maintaining this lead calls for harnessing the resources and expertise of the company - from applied research and production to marketing. JKCL factory is equipped with state-of-the-art process control instrumentation and associated quality control and testing laboratories. Trained engineers, chemists and technicians man these. As a result of this focus on quality, JKCL specifications exceed those set by BIS by a wide margin. Today, JKCL plant has the ISO 9001 Quality Systems certification. This demonstrates our tradition of providing reliable and consistent quality through the application of modern technology, and justifies the preferences of a nationwide customer base.

CORPORATE GOVERNANCE
The importance of Corporate Governance has always been recognised in JKCL ltd. Much before Corporate Governance guidelines became applicable and mandatory for listed companies; JKCL had systems in place for effective strategic planning and processes, risk Lovely Professional University,Punjab. 28

management, human resources development and succession planning. The Companys core values are based on integrity, respect for the law and strict compliance thereof, emphasis on product quality and a caring spirit. Corporate Governance therefore in JKCL is a way of life. JKCL is a professionally managed Company with a majority of its Directors being Independent Directors. The Board of Directors has always consisted of persons who are professionals in their respective fields and with unquestionable integrity and reputation. The role, responsibility and accountability of the Board of Directors are clearly defined. Members of the Board have full freedom to express their views on matters placed before them for deliberation and consideration. It is the continuous endeavour of the Board of Directors to achieve the highest standards of Corporate Governance through the adoption of a strategic planning process, succession planning for attracting, motivating and energizing human resources, identification of major risks and the way and means to manage such risks, an effective communication policy and integrity of Companys internal control systems. The Board of Directors are also constantly looking at ways and means to ensure that the most effective use is made of the scarce resources at its disposal and that the management and employees have the freedom to take the Company forward within the framework of effective JKCL accountability. The Annual Reports, press releases and other communication have always made full disclosures, particularly with regard to information relating to financial matters, companys operations/performances.

CORPORATE SOCIAL RESPONSIBILITY

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Today we define Corporate Social Responsibility as the way a company balances its economic, social and environmental objectives while addressing stakeholder expectations and enhancing shareholder value. But JKCL has undertaken social volunteering practices almost from its inception, long before the term corporate social responsibility was coined. The companys earliest initiatives in community development date back to the 1985's in a village on the outskirts of the factory areas. The community living around our factory comprises the weakest sections of rural population with no access to basic amenities. The Company shall continue to have among its objectives the promotion and growth of the national economy through increased productivity, effective utilization of material and manpower resources and continued application of modern scientific and managerial techniques, in keeping with the national aspiration; and the Company shall continue to be mindful of its social and moral responsibilities to consumers, employees, shareholders, society and the local community. In pursuance of the above objective, JKCL acknowledges the importance of the concept of inter-dependence of all sections of society. In particular, its focus revolves around the community residing in the immediate vicinity of its Cement Plant and Mines where it seeks to actively assist in improving the quality of life and making this community self-reliant. In line with its roufing concern for preservation of the ecological balance and safeguarding the health of the community, JKCL has always actively demonstrated its firm will to protect the environment mindful of its great tradition, JKCL is deeply committed to enhancing its reputation and respect built over the years in industry and society for its professional style of management based on philosophy of the best in business ethics. J&K Cements is also playing a social objectives role with the company providing Rs. 10 lakh to 10-bed hospital at Khrew and construction of school buildings for Government Girls and Boys schools in the same village. More than two lakh trees in and around the cement plant have also been planted and afforestation has been made a continuous programme.

AWARDS OF EXCELLENCE WON BY J&K CEMENTS.

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LOYALTY AWARD 2007 (J&K CEMENT SECTOR)

BEST CONSULTING AWARD IN CEMENT SECTOR (J&K)

MOST RESPECTABLE COMPANY AWARD (J&K) PRESENTED BY HBLE CHIEF MINISTER OF THE STATE.

NEED FOR ENHANCING CEMENT PRODUCTION: The Indian cement industry is the fourth largest in the world and by year 2010, it expects to be next only to China. Innumerable technological developments have taken place in cement production enabling cost reduction and large volume production. The wet kilns of the seventies were replaced by dry kilns, reducing fuel cost by installation of pre-heaters and precalciners. Finally computerization and quality control of raw material resulted in optimum usage of fuel and power.

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PROCESS DESCRIPTION: Cement, which is the most commonly used bonding agent in construction industry, is a complex compound of oxides of Calcium, Silica, Iron and Alumina. These compounds are present in cement in a predetermined proportion. Raw material used to manufacture clinker is mainly limestone along with additive material(s) in order to obtain the various oxides in proper proportion. Pulverized raw meal is sintered in a kiln to the point of incipient fusion to produce cement clinker. RAW MATERIALS: The various raw materials required are as follows; 1) Limestone 2) Clay 3) Sandstone 4) Iron ore 5) Ferruginous limestone 6) Laterite 7) Gypsum 8) Coal 9) Coke breeze 10) Fly ash Limestone will be obtained from the JKCL limestone mines already operating adjoining to the JKCL cement plant for additional new line. Gypsum will be obtained from Assar and Uri;fly ash will be obtained from Punjab. Indian/Imported Coal and high calorific material will be used as a fuel. In addition to this clay is obtained from nearby village named as Wuyan which is also an important factor in reducing transportation cost. Limestone must contain CaCO3 above 85% and MgCO3 below 3%. Gypsum must contain calcium Sulphate above 80%. The clay used must have Aluminates and Silicates at high percentage. The percentage of various raw materials are as follows; Total Carbonates 78-79% Calcium Oxide 43-44% Ferrous Oxide. 2.2-2.4% Aluminum Oxide.. 2.5-3.5% Lovely Professional University,Punjab. 32

Carbon Monoxide. Magnesium Oxide.. Silicon Oxide.

34-36%

1-2% 11.5-12.5%

Clay as an additive material must have percentage 15-25% Clinker production requires raw material as limestone, clay and iron ores which undergo various processes during the production. Clinker is produced in the Kiln which has three zones like burning zone having high Alumina 70%, Calcinations zone having high Alumina 60% and cooling zone with high Alumina 60-70%. The maximum temperature required for Kiln is 1400-1450 Degree Celsius add requires feed rate 13.4 tones per hour coal is used for burning purpose. When the Clinker is formed we add to it gypsum and iron ores which ultimately leads to the formation of cement. Workshop: The existing equipments in workshop are as under; Plate bending machine Lathe Shaper Drilling machine Hand grinder Hacksaw Welding generator Electric wiring section Vulcanized section

Laboratory: The existing equipment in laboratory are given as under a) List of physical testing equipment installed in RD and QA department of JK Cements Ltd., Khrew; 1) Compressive testing machine (Cap. 0-1000KN) 2) Compressive testing machine (Cap. 0-20KN) 3) Vibrating machines Lovely Professional University,Punjab. 33

4) Autoclave apparatus 5) Ball mill 6) Water distillation apparatus 7) Ordinary cuse curing tank with three chambers 8) Digital hand tachometer 9) Barager balance b) List of chemical testing equipment; 1) Electronic balance 2) Spectrophptometer 3) Bomb calorimeter 4) Two pan balance 5) Humidity chamber 6) Drying oven 7) Muffle furnace 8) HOT plate 9) Desiccators 10) Sucktlon pump 11) All type of glass works 12) Thermohygrometer 13) Digital temp. meter (0-250 Deg, C) Raw Materials: The raw materials used for manufacture of cement are limestone, clay, sandstone, iron ore, gypsum and coal.

Power: The power is available from Pampore Grid Station through 33KV overhead line 15km. long. Water: The consumption of water is met from two bore well pumps two numbers of 40cm. per hour. Additional production line will require additional 40cm. per hour. Fuel:

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The fuel (Coal) is being arranged from Eastern Coal Fields (Coal India Ltd. Technical Concept of the plant: A technical concept of the plant for manufacture of cement is as under; 1. Mining of limestone from the existing geologically prospected limestone deposits near the plant. 2. Crushing of limestone received from mines. 3. Crushing and Drying of clay. 4. Raw grinding of required raw materials. 5. Transportation of finally ground raw materials to blending and storage silos. 6. Calcinations and burning of finally ground raw materials at a temperature of 1650 Degree Celsius (Pyro-processing) with the help of finely grounded coal. The product thus obtained is called Clinker. 7. Grinding of Clinker and gypsum to fine powder as per BIS standards to manufacture cement. 8. Transportation of cement to cement storage silos. 9. Extraction of cement and its dispatch through Packing plant. Almost at all the stages listed above during the manufacture of cement, the evolution of dust is a phenomenon within the system. The process and ventilation gases discharged into atmosphere after these dust laden gases are processed through dust collection equipments for removal and collection of dust. The dust free air and gases within the permissible limits prescribed by pollution control board norms are vented out to atmosphere.

Ecology: The forest area in the district is approximately 810 Sq Km. The common tree species are deodar, fir, pine, walnut, apple, datura etc. In the existing area domestic animals like cow, buffalo, goat, sheep, monkey, fox are found. The reptiles like snake, lizard and rats are also found. Among the birds mainly crow, sparrow, pigeon and migratory birds are found in the area. Lovely Professional University,Punjab. 35

The common crops are paddy, alsi (Rape seed), Saffron (Kesar), maize, wheat, moong, potato, chilly, linseed and other pulses and fodder crops. Due to absence of Flora in the Project site, there will be any negative impact on biological environment Ecosystem comprising of birds and animals. Dense green belt is proposed under Management Plan which will help in reducing the negative impact if any. The progressive growth of greenery will improve the environment in the course of time.

Ambient Air Quality: J & K Cements got Environment Impact Assessment Report (EIA) conducted through JM Environet Ltd. Jaipur leading firm for the purpose which conducted a study on the various Air Quality parameters. The suspended particulate matter concentration (SPM) ranged between 76-232 micrograms per Cm. as against prescribed norms of 232 maximum micrograms per Cm. As far as gaseous pollutants sulphur dioxide and oxides of nitrogen are concerned, the promulgated CPCB limit of 80 micrograms per Cm. was never exceeded in residential/rural areas. Water Quality: There is no effluent generated from the plant. Noise Environment: Noise levels are well within prescribed limits as prescribed by CPCB and State Pollution Control Board. Gaseous Emissions: J&K Cements Ltd. Has already started Pollution Control equipment with adequate capacity to avoid degradation of Air environment at all vital installations as could be seen from the latest SPCB report for additional new line it is proposed to install RPJs (Reverse Pulse Jet ) bag filters, Flush mounted bag filters, ESPs, etc. at a cost of 5.33 Crore. The SPM emission level from the stacks will be less than 50 milli grams per normal Cm, which is compatible to the

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best international standards. Fugitive emission will be controlled by bag filters at transfer points and water spray systems.

Plantation program: The existing Plantation drive around the Plant shall be the priority of the Management. A variety of plants in addition to trees planted shall be taken up after commissioning of the plant. We are firmly convinced of the need for appropriate measures at state, national, individual and collective levels to protect nature and promote cooperation in this field. Nature shall be respected and its essential processes shall not be compromised. The population levels of all level forms wild and domesticated shall be safeguarded. In planning and implementation of social and economic development activities, due account shall be taken of the fact that conservation of nature is an integral part of those activities. Proposed Pollution Control Equipment: Location Type of pollution control equipment

For Raw Mill Hoppers and Mill Reverse Pulse Jet Bag Filter Auxiliaries For Raw Mill & Kiln For Raw Meal C.F. Silo Top For Raw Meal C.F. Silo Bag House Flush Mounted Bag Filter Extraction Reverse Pulse Jet Bag Filter ESP Reverse Pulse Jet Bag Filter ..DO. Flush Mounted Bag Filter Reverse Pulse Jet Bag Filter

Equipment For Kiln Cooler For Coal Crusher For Coal Mill For Fine Coal Bins Top For Fine Coal Bin Extraction

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For Kiln Feed Equipment For Cement Mill Separator Location For Cement Silo For Cement Silo Extraction For Packing For Fly ash Silo For OPC Silo For OPC Silo Extract & Blender

DO ..DO.. Type of pollution equipment Flush Mounted Bag Filter Reverse Pulse Jet Bag filter ..DO.. Flush Mounted Bag Filter Flush Mounted Bag Filter Reverse Pulse Jet Bag Filter

control

The total cost involved for above pollution control equipments works out to Rs.533.52 Lac. The Company is well aware of its obligations to the society in general and the plant area in particular. We once again assure the House Committee that the Management shall remain committed to safe guarding environment and shall continue to strive for a better environment. With the growing trend of economic development, the diversified construction activities both in private as well as in public sector have been intensified to a large extent in the state of J & K, as a result of this the demand for cement and iron was bound to rise at a considerable rate. But both the materials being non available have been imported from outside the state. Imports of these items were rising during the year 1961-62 cement imported from outside the state was 35360 tones, and during the next year i.e. 1962-63 it was 363622 tones. On the other hand, because of the long distance and absence of the railways, the transportation costs were very high. For example, in the year 1962 cement sold atRs.9 per bag in Jammu and was being sold at Rs. 13.54 per bag at Srinagar. Thus on the consumption side the internal demand was rising and the prices of imported cement were rising further. Whereas, on the production side the state is favourably endowed with the raw materials for manufacturing of cement such as limestone, clay gypsum and coal, with the availability of these materials, the nature has ensured large potentialities of cement production in the state. Lovely Professional University,Punjab. 38

On the basis of the above considerations the state under the Industrial Development Programme (IDP) set up cement factory in 1962 at Wuyan Srinagar to reduce the economic drainage in the state. As the raw material s for the production of cement were available in abundance, hence the need of the for these resources was large scale in accordance with the demand. Another cement factory known as J&K Cements Ltd. Was incorporated on the 24th of the December 1974with an authorized capital at Rs. 5 crores divided into 5 lacs equity shares of Rs.100 each. Later the company increased its share capital from Rs.5 crores to Rs. 6.5 crores. This plant is now working with a present capacity of 600 tones per day and is soon going to double its capacity to 1200 tones. But with the passage of time and with the increase in the construction activities in the state other privately owned plants of cement manufacturing started their operations. This growth in these plants was witnessed because of inability of J&K cements to fulfill the demand, the attractive profitability of the industry and due to availability of raw materials in the state. The various brands which are operational today in the state are; KHYBER CEMENTS, SAIFCO CEMENTS, ELLAHI CEMENTS, HAROON CEMENTS, TCI CEMENTS etc; and there are some upcoming units like GREENLAND CEMENTS, DAWER CEMENTS, SANNA CEMENTS etc. The J&K Cements Limited being a fully owned government company with an authorized capital of Rs. 5.0 Crores, and excess demand over the production capacity so I found an opportunity to prepare a project report on J&K Cements Ltd. Jammu & Kashmir Cements Ltd. was incorporated as a fully owned Government company in December 1974. The plant is situated near rich deposits of high quality limestone which help in production of quality cement. The private cement industries came into existence from year 2000 till that there was monopoly of J&K Cements Ltd. The above mentioned private industries are not capable to compete with J&K Cements as it is leading in case of quality as has captured whole market and demand for this Cement is more than supply. The quality is the most important factor which the customers keep in mind while buying cement for which J&K Cement is known. Philosophy: To exploit the abundant deposits available near the plant site.

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To make the quality cement available to the consumers at reasonable

rates. To fill up the gap between demand and supply.

Investment: The initial investment for setting up the plant was around Rs. 38 crores out of which the government of J&K contributed about Rs. 15 crores towards its equity share capital and rest of the amount was raised as term loan from various financial institutions. Product Line: The company produces quality varieties of Portland cement (OPC) 53&43 Grades under Jhelum Brand with Bureau of Indian Standards Certification. This brand is a registered with the Trade Marks Registry, MuM.Comi, Govt. of India.

Additional Product Line: The company is going to add one more variety of cement to its product line by manufacturing Fly Ash based Puzzling Portland Cement. Major producers in the line have already started manufacturing large quantities of blended cement using Fly Ash in manufacture of cement. By introducing this variety of cement in the market, the Company would be able to reduce the cost of production and appear in more competition with major producers in the market. Production: The company has seen many ups and downs since its inception. Company achieved some significant production of Clinker during the years 1985-86, 87-88, 88-89 and 89-90 otherwise in all other years production percentage has not been satisfactory due to one reason or the Lovely Professional University,Punjab. 40

other. In the year 1996-97 the production percentage dipped to 20.15%. However, during the last few years time, the company has been brought back on rail and has shown encouraging results. The performance of the company has shown a steady improvement during the last few years with increase in sales turnover as well as production. The turnover of the company increased from Rs. 12.93 crores in 1996-97 to Rs. 47 crores in 2000-01. At present the company is having a profit of 45 crore rupees Major Improvements: The company has made major improvements for stabilization of plant and has undertaken following major works:a) Installation of antipollution devices; The company had Electrostatic Precipitator/Gas Conditioning Tower System of pollution control installed on its kilns only and rest of the segments of the plant were not covered with proper system of antipollution device. The Management brought all the remaining segments of the plant under pollution control by installing Reverse Pulse Jet (RPJ) system of antipollution device. the most improvised device in the field having German technology, within the shortest period there by making the atmosphere around the cement factory ecofriendly. b) Replacement of Kiln shell; This pending job was the posing very serious problem in the plant pending for the last so many years though the Kiln shell to be replaced was purchased years before but could not be replaced was purchased years before but could not be replaced due to the high quantum of risk involved in the replacement but the present Management got it done by locating a party from CoiM.Comtore who was persuaded to take up the job with the proper planning, care and caution. c) Installation of weighs feeders and Burning Zone Temp. Recorders; These were also long pending and causing grave problems in the Plant towards monitoring of feed and maintaining temperature to the Kiln and burning of the same to the required level was carried out tentatively by the technical staff and no yard stick was available but the Management did not compromise with the quality of the product and got these equipments installed to avoid guess work and to authentic control over these two important parameters. Lovely Professional University,Punjab. 41

Contribution in Developmental activities in the State: The company is providing employment to more than 1000 semi-skilled, skilled, specialized and super specialized people directly or indirectly. In addition to this about 200 distributors and Sub-dealers are engaged in Sales Promotion of our cement. The company has played significant role in the development of the State and is also a major contributor in construction of major projects like Hydle Power Projects, Water Treatment Plants, Bridges, Canals etc. The company is supplying cement in bulk quantities to Leh, Kargil, Defense Services, State PWD, Power Development Corporation. Railways have also approved the Jhelum Brand Cement in construction of railway in Kashmir Valley. In addition the company is also set to supply cement to the newly taken up Fly over near Civil Secretariat and construction of flates under self financing scheme.

Profit & Loss: The company has earned a profit of Rs. 50 crore during the 2007-08. & the company has earned a profit of Rs.45crore during 2008-09.During the past financial year the company revenue was 78 crore. Loan Liquidation: The company liquidated all loan liability with LIC, ICICI, IFCI, JKB & IDBI through One Time Settlement (OTS). Now the company (JKCL) is debt free in respect of loans from above financial institutions. Dividend;

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After liquidating its debts the company has been able to pay dividend on its share capital and paid a dividend of Rs.45 lacs per year during the last two successive years the Govt. of J&K holding all the share capital of the company.Recently j&k cements have paid a dividend of rupees sixty lakh to government.

Surrounding Development: The surrounding area of the plant have been developed by way of an employees colony, plantation in and around the plant, Girls School Complex, Hospital building and sports field etc.

Environment: The company had Electrostatic Precipitator / Gas conditioning Tower System of pollution control installed on its Kilns only and rest of the segments of the plant were not covered with proper system of anti pollution device. In order to overcome the menace of pollution that was emanating from the plant and also to provide clean environments to Factory employee, locals and Army regiment, the company has been able to successfully install Reverse Pulse Jet (RPJ) system of anti-pollution devices and achieved desired level of emission. It is a fact that the dust emission from various sections of the Plant viz, Raw Mill, Coal Mills, Cement Mill and Packing Plant was so high that not only it affected the local environment but a lot of money was being lost by the company on account of this dust getting discharged in atmosphere. The Company took responsibility and immediately started working on these measures which although resulted in lot of interruptions / disruptions in the working of the Plant. This has definitely affected production and sale of cement during shut down of plant but without these measures the plant would have been closed by Pollution Control Board or adjoining Army Regiments. The Company also invited a team from State Pollution Control Board, who visited our Factory on 08.05.2003 for inspection and found the results satisfactory as the team recorded that the particulate matter in stack is 191mg/Nm3 against standard limit of 250mg/Nm3. The

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State Pollution Control Board has appreciated and welcome the efforts made by JKCL in this regard. With the installation of RPJ system, the Company has a substantial saving. The cement dust, which was discharged in the atmosphere, is being now recycled and has resulted in savings. The level of pollution is now much below the National Permissible norms.

Meeting All Expenses-No Budgetary Support-Migrant Employees Salary: During the first 9 months of the current year company paid Rs. 50.06 lacs as salary to its migrant employees from its own resources without any budgetary support from the government. When we talk about the salary of the employees who are working at the site comes about 70 lacs for a month and overtime given to them is almost 2 lacs /month. The above shown salary does not include the salary of employees working in Head office Srinagar. Contribution to Exchequer: The company has also made significant towards State and Central Exchequer in the shape of State Sales Tax, Toll Tax and Central Excise Duty to the tune of Rs. 9172.03 lacs up to end of December, 2008 (State Sales Tax Rs. 3365.42 lacs, Toll Tax Rs. 889.81 lacs and Excise Duty Rs. 4916.80 lacs). During the first nine months of the current financial year the company has paid Rs. 229.58 lacs as Sales Tax, Rs. 217.56 lacs as Central Excise Duty, Rs. 76.15 lacs as Toll Tax. In addition to this an amount of Rs. 44.45 lacs as Royalty to Geology and Mining Department and Rs. 266.51 lacs as electricity charges to State Power Development Department has also been paid during this period Distribution Network: The company sells its cement at three levels. These are:To Govt. and Semi-Govt. agencies within the State. To DGS and D through an annual rate contract for Central Govt. Offices within State, Defense agencies and to Border Road Organization in the State. To General Public through its network of distributors and about 200 Sub-dealers spread all over the State. Lovely Professional University,Punjab. 44

Human Resources Development and Workers-Management Relations: The company undertakes various training courses for its employees. These courses are at times conducted in Plant. But mostly, these are at locations outside the State. Employees are encouraged to participate in these in order to increase their skills. This is a continuous process and Management takes a lot of interest in this activity. During the last two years the relations between workers and Management has improved a lot and the workmen are keenly attending their duties. The workers are efficiently working towards achieving the maximum productivity. In recognition of these efforts, the company has declared an enhancement of Rs. 500/head in their yearly ex-gratia to the employees.

Expansion of the Plant-New Project: Subsequent to the clearance by Board of Directors of J&K Cements Ltd. for expansion of its installed capacity by 600 tones/day, it was decided in a meeting held on 25-04-03 under the Chairmanship of Honble Minister of finance that J&K Cements Ltd. shall expand its production capacity by 300 tones/day making use of infra-structure available with the company. Expert from National Counsel for Cement and Building Materials-NCBM (a premier institute of Govt. of India) were called for in depth study of plant and have given various suggestions. In the meanwhile, the Managing Director visited many manufacturers / cement plants in the country for having on spot study of the cement plants. All these experts in the cement plant manufacturers and cement producers are of the view that in view of the location and cement demand in J&K State and the latest technology available, the installation of 600 TPD. New stream instead of 300 TPD would be more feasible and economical. After going through the budgetary offers and technical reports submitted by leading manufacturers Lovely Professional University,Punjab. 45

like, M/s. Fuller India Ltd. Chennai, M/S Walchand Nagar India, Pune and M/S. Promac Engineers India, Bangalore, it has been found that there is not much of investment difference between installing a new stream of 600 TPD and 300TPD capacity cement plant. In view of the large gap between the supply & demand of cement in the State and good performance of the Company, the Govt. approved the expansion of our existing plant by 600TPD involving an expenditure of Rs.64.16 crores and Planning and Development Department also issued the letter of commitment for release of Rs.22.91 crores towards equity share capital of the company on the basis of 1.8:1 debt equity ratio. The Balance amount will be arranged from financial institutions as Term Loan. The pay back period is 5 years & 2 months. After commissioning the Company will have the following benefits: In view of the latest technology now available in cement industry, the plants will have the power utilization in the range of 80-110 Kwh on per tones of cement as against our present consumption of 150 Kwh on per tones of cement. Coal consumption will be about 16-18% of clinker whereas in our existing plant it is now after many years 25% which has brought down from 29% in last year.

Highlights of the New Project: Capacity Number of Kilns Power requirement Pollution Control Project Execution 600 tones/day 1 5MVA Latest ESP and RPJ Turnkey project including Civil works

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Raw Material Grinding Power saving in Grinding Acceptability of moisture Energy Saving

Vertical Roller Mill 7-8 units/tone 15-17% in raw material About 50 units/tone of cement produced

Coal Consumption Control System

15% Central Computerized Control System for all sections

Connectivity with Head Office Project Executing Agency

Via Satellite for real time monitoring M/S Promac Engineering Industries Limited, Bangalore

Project Consultants

M/S Ercom Engineering (P) Limited,

OBJECTIVES OF THE RESEARCH

The primary objective of the research was to know the Brand Loyalty of Jhelum Brand but during the survey following things I have kept in mind. 1. To know the preferences of consumers towards various brands of cement manufactured in Kashmir. 2. To know that who recommends the consumer to buy the particular brand. 3. To know where from consumer prefer to buy the cement.

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4. To study which are the most important attributes that consumer look for in cement. 5. To identify the customer grievances if any. 6. To know the problem faced by consumer while using Jhelum Brand Cement. 7. To examine the satisfaction level of customers. 8. To seek suggestions for the various changes to make the Jhelum Brand Cement quite convenient.

RESEARCH METHODOLOGY

The study is an exercise involving estimation of parameters as regard to organizational requirements. Research was designed so as to get the relevant information that can be used for various purposes in the organization. The information is to be collected from the different sources of data. Data Source:-

Two types of data were taken into consideration i.e., primary and secondary data. But major emphasis was given on gathering primary data. The secondary data was used only to supplement the primary data and to make things clear. Primary Data:-

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We took primary data by interview method which covered the answering of questionnaires from people. We collected the data first hand for the first time. Secondary Data:-

We consulted some books and previous project reports for some topic like Introduction to the topic and also referred some websites. We also took information from various people who are in close touch with the consumers.

Survey:-

The type of survey undertaken was that of sample type keeping in consideration the time constraint and paraphernalia, besides the viability of census survey, the sample survey thus being taken to the right path to reach the desired destination was carefully planned to convert of the operation by using selected samples.

Statistical Tool:-

The tool for obtaining the information was questionnaire. A structured questionnaire was administered. The questionnaire was designed in the view both major and minor objective of study. Sampling:I used convenient sampling for collection of the data, where the sample is neither selected by judgment nor by chance but by convenience. This method is also known as Chung method. Sample size:-

The sample size was taken to be 100 in the cluster population of customer universe.

DATA ANALYSIS AND INTERPRETATION:1. Monthly household income: Lovely Professional University,Punjab. 49

S. No.

Options

No. of respondents

%age no. respondents.

of

1 2 3 4 5

Less than 3000 3000-6000 6000-9000 9000-12000 Above 12000

6 11 33 24 26

6% 11% 33% 24% 26%

In the above table it is revealed that 6% of people have less than 3000 household income, 11% people is having their household income 3000-6000, 33% people is having their household income 6000-9000, 26% people is having their household income 9000-12000 and remaining 19% people is having their household income above 12000.

2. Have you ever buy cement for construction purposes?

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S. No. 1 2

Options Yes No

No. of respondents 71 29

%age no. respondents. 71% 29%

of

In the above table it is revealed that 71% of the people have purchased cement for construction purposes and 29% have not.

3. Which brand of Cement you prefer to use:

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S. No.

Options

No. of respondents

%age no. respondents.

of

1 2 3 4 5

Jhelum Brand Cement Khyber Cement Trumboo Cement Ambuja Cement All of the Above

31 15 17 04 33

31% 15% 17% 04% 33%

The above table reveals that 31% people prefer Jhelum Brand Cement, 15% Khyber,17% Trumboo, 04% Ambuja and remaining 33% people use all of the above Brands.

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4. Who recommended you to use this brand?

S. No.

Options

No. of respondents

%age no. of respondents.

1 2 3 4 5 6

Architect Mason Dealer Friend Company Adverts Any Other

41 28 15 11 04 0

41% 28% 15% 11% 4% 0%

The above chart illustrates that 41% people are recommended by Architect to use the brand, 28% people by Mason, 15% people by Dealer, 11% by Friends and 5% by Company Adverts.

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5. Are all these brands readily available in the market? S. No. 1 2 Options Yes No No. of respondents 71 29 %age no. of respondents. 71% 29%

The above chart reveals that 71% people say that all the above brands are readily available in the market and 29% people say that all the above brands are not readily available in the market.

6. Where do you prefer to buy the cement? Lovely Professional University,Punjab. 54

S. No. 1 2 3 4 5 6

Options

No. of respondents

%age no. respondents. 5% 27% 12% 36% 20% 0%

of

Retailer Dealer Sub-Dealer Whole seller Company Outlet if Any Any Other Source

5 27 12 36 20 0

The above chart reveals that 5% people prefer to buy cement from retailer, 27% from dealer, 12% from Sub- dealer, 36% from Whole and rest 20% from Company Outlet.

7. The most important attributes you look for in Cement: S. No. Options No. of respondents %age no. of respondents.

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1 2 3 4 5

Quality Availability Price Any Other Packaging

45 15 31 3 6

45% 15% 31% 3% 6%

The above chart reveals that 45% people look for in Quality, 15% of people look for availability, 31% of people look for in Price and the 6% look for in Packaging.

8. Overall how do you find Jhelum Brand Cement in terms of Quality. S. No. Options No. of respondents %age no. of respondents.

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1 2 3 4 5

Very Poor Poor Satisfactory Good Very Good

4 8 31 39 18

4% 8% 31% 39% 18%

The above chart reveals that 31% of people are satisfactory with Jhelum Brand Cement, 39% say it is good and rest 18% of people say it is very good.

9. Have you seen Jhelum Brand Cement ads? S. No. 1 Options Yes No. of Respondents 12 %age no. of respondents. 12% 57

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No

88

88%

The above chart reveals that 12% people say that they have seen Jhelum brand Ads and 88% people say that they have not seen Jhelum Brand Ads.

10. Why you prefer to buy Jhelum Brand Cement? S. No. Options No. of respondents %age no. of respondents.

1 2

High Quality Packaging

39 11 Lovely Professional University,Punjab.

39% 11% 58

3 4

Availability All of them

29 21

27% 21%

The above chart reveals that 39% of people prefer to buy Jhelum Brand because of high Quality, 11% because of Packaging, 29% see availability and rest 21% because of all the above mentioned features.

11. While purchasing in bulk what kind of benefits do you get? S. No. Options No. of respondents %age no. of respondents.

1 2 3

Incentives Gifts Price Relaxation

3 12 17 Lovely Professional University,Punjab.

3% 12% 17% 59

None of the Above

68

68%

The above chart reveals that 3% of the respondents agree about incentives, 12% are being provided with gifts, 17% gets price relexation and 68% of people say that we do not get any benefit while purchasing Jhelum Brand Cement in bulk.

12. Which Grade of Jhelum Brand Cement you prefer most? S. No. Options No. of respondents %age no. of respondents.

1 2 3

43 Grade PPC 43 Grade OPC Both of the Above

21 59 30

21% 59% 30%

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Both of the Above

43 Grade

t d n p s e r f . o N
0%

20%

40% %age

60%

The above histogram illustrates that 59% of people prefer 43 Grade OPC cement 21% prefer to use 43 grade PPC cement and rest 30% prefer both 33 & 43 Grade Cement.

13. Have you faced any problem while using Jhelum Brand Cement? S. No. Options No. of respondents %age no. of respondents.

1 2

Yes No

9 91

9% 91%

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The above chart illustrates that 91% of people say that they have not faced any problem while using Jhelum Brand Cement and 9% have faced problem.

14. What action would you like to take against brand if you face any problem? S. No. Options Complaint to Distributor Complaint to Govt. Authority Go for Compensation Stop the use of Product No. of respondents %age no. of respondents.

1 2 3 4

15 51 24 10

15% 51% 24% 10%

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The above chart reveals that 15% would complaint to distributor, 51% would like to complaint to Govt. authority, 24% people would like to go for compensation and the rest 10% would like to stop the use of product.

15. Are you satisfied with Jhelum Brand Cement in general? S. No. Options No. of respondents %age no. of respondents.

1 2

Yes No

79 21

79% 21%

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The above chart illustrates that 79% of the respondents are satisfied with Jhelum Brand Cement in general.

FINDINGS On the basis of survey regarding Brand Loyalty of Jhelum Brand Cement Versus Other Brands I have found following information. 1. I found that 6% of people have less than 3000 household income, 11% people is having their household income 3000-6000, 33% people is having their household income 6000-9000, 24% people is having their household income 9000-12000 and remaining 26% people is having their household income above 12000.

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2. I found that 71% of the people buy cement for construction purposes. 3. I observed that 31% people prefer Jhelum Brand Cement,15% prefer Khyber cement, 17% prefer Trumboo cement,4% prefer Ambuja and remaining 33% people use all of the above Brands. 4. I found that 41% people are recommended by Architect to use the brand, 28% people by Mason, 15% people by Dealer, 11% by Friends and 5% by Company Adverts. 5. I observe that 71% people say that all the above brands are readily available in the market and 29% people say that all the above brands are not readily available in the market. 6. I found that 11% people prefer to buy cement from retailer, 24% from dealer, 9% from Sub- dealer, 39% from Wholeseller and rest 17% from Company Outlet. 7. I observed that 45% people look for in Quality, 31% of people look for in Price, 15% look for availability and 6% look for in Packaging. 8. I found that 31% of people are satisfied with Jhelum Brand Cement, 39% say it is good, 8% say it is poor and rest 18% of people say it is very good. 9. I found that 12% people say that they have seen Jhelum brand Ads and 88% people say that they have not seen Jhelum Brand Ads. 10. I observed that 39% of people prefer to buy Jhelum Brand because of high Quality, 11% because of Packaging, 29% to availability and rest 21% because of all the above mentioned features. 11. I found that 68% of people say that we do not get any benefit while purchasing Jhelum Brand Cement in bulk. 12. I observed that 59% of people prefer 43 Grade opc cement, 21% to 43 grade ppc and rest 30% prefer both 43 & 43 ppc & opc Grade Cement.

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13. I found that 91% of people say that they have not faced any problem while using Jhelum Brand Cement. 14. I observed that 15% would like to complaint to distributor, 51% would like to complaint to Govt. authority, 24% people would like to go for compensation and the rest 10% would like to stop the use of product. 15. I observed that 79% of the respondents are satisfied with Jhelum Brand Cement in general and 21% of the respondents say no.

SUGGESTIONS In the light of the findings of the study the following suggestions have been found for the improvement of the Brand Loyalty of Jhelum Brand Cement. 1. The Jhelum Brand Cement should increase the percentage of sales to the private concerns. 2. The Jhelum Brand Cement should increase the supply of cement to the local market. 3. The Jhelum Brand Cement should make more efforts in making the cement of very high quality. Lovely Professional University,Punjab. 66

4. Jhelum brand cement must include various benefits like incentives and gifts the consumers while purchasing the cement in bulk. 5. The Jhelum brand cement should take various steps towards social responsibility like providing medical facility, transport facility, making school buildings and making cement available at lower price to the local people as compared to outsiders. 6. They should also provide electricity to the locality as the people are influenced by the plant by one way or other. 7. The other brands which are manufactured in Kashmir valley must take serious steps towards the quality to make the market much competitive. 8. The Jhelum brand cement should provide credit facility so that the lower class family can also make the use of this brand.

CONCLUSION From the survey regarding Brand Loyalty of Jhelum Brand Versus Other brands. I concluded that the major role in the loyalty of this brand is being played by the quality of the Jhelum Brand for which it is much famous in the Kashmir valley as compared to all other brands of cement manufactured. Almost 31% of the respondents prefer Jhelum Brand cement but still there are some loopholes like less availability in the local markets which is because of more demand by the Govt. sector to this brand which should be plugged immediately by producing more cement and increasing the supply of this brand to the local market.The

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competitors like TCI, KCI, and SCI etc. have to do lot many things if they think of beating J&K Cement in the competition in the valley.

BLIOGRAPHY AND REFERENCES

Reference to a book: Kotler Philip, Marketing Management, Pearson Publisher Ltd, New Delhi , 2006 Statistical Methods by S.P.Gupta Concepts & practices of Research Methodology by HARPREET SINGH.

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MAGAZINES: Company pamphlets Company report News paper such as Economic Times, The Times of India and Greater Kashmir. Websites of J&K Cement www.j&kcements.net www.j&kcements.com www.jammuandkashmir.com References: Aaker and Keller, 1994. {International Marketing Review volume 13 (1996) P 92-96} Aaker 2003. {Journal of Product and Brand Management volume 14 (2005) P 487} Batra et al. (1998) {Measuring Business Excellence volume 10, No.3 (2003) p109-112} Calder etal. 2003. {Journal of Product and Brand Management volume14 (2005) P 443-449} Fotopoulos and Krystallis 2003{Journal of consumer Marketing volume8 (2005) P 223-232) Giannakas and Fulton, 2004. {Journal of Consumer Marketing volume 12 (2005) P 223-228 Law and Keller, 2005. {Measuring Business Excellence volume 10, (2006) P143-149}

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