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A
Project Study Report
On
Training Undertaken at
J.K.CEMENT
PRICE ANALYSIS OF VARIOUS CEMENT BRANDS
Submi!" i# $%&i%' (u'(i'm!# ()& *!
A+%&" )( "!,&!! )(
Master of Business Administration
Submi!" B-./ Submi!" T)./
****
MBA 0
#"
Y!%& 1HOD2
APE3 INSTITUTION OF ENGG. 4 TECHO.DEPARTMENT OF
MANAGEMENT 10556/0557 2
PREFACE
The objective of this project to evauate the product and study the behaviour of Marketing
and its enormous study in !ndia speciay in jaipur
Indeed this gives us a useful insight about the marketing strategy of this industry. Some interesting
factors were gathered during the survey in jaipur
"ere proved to be very usefu in understanding the "orking of any organi#ation and the
other aspects$ "hich decides the successfu "orking of an organi#ation%
! sincerey beieve that this research "i be usefu to the organi#ation and others as "e%
&%'%(ement )orks
ACKNO8LEDGEMENT
At the outset$ ! am thankfu to management of &'() for permitting me to pursue the
summer training and kind approva to take up the project%
The credit for the successfu competion of our project mainy goes to Mr% *%
RA+!S,A-'AR$ PR.S!*.-T /(hief e0ecutive$ ead pant1 ! "ish to e0press my sincere
gratitude *R% ' *A*,!(,, *2M /marketing1$for creating a critica e0amination of summer
training topic
3PR!(. A-A45S!S O6 +AR!OUS (.M.-T BRA-* !- (,!TTOR2AR, R.2!O-7
! )oud aso ike to thank MR% R%P%S!-2, /2M8,R*9RT(1 9 Mr% S,A!4.-*RA S,ARMA
/ASST% MA-A2.R1 RT($ -!MBA,.RA and a the staff member of &%'%cement "orks /Raj%1
9 RT($ -!MBA,.RA$ my parents and my friends "ithout "hose hep this report "oud be
incompete%
! aso pay my sincere gratitude to my friends "ho inspired me and guided me in competing
this task%
/////////////////////////////////////
TABLE OF CONTENTS
9. THE INDIAN NORTHEN CEMENT INDUSTRY
0. INTERODUCTION TO THE ORGANISATION
:. RESEARCH METHODOLOGY
:.9 TITLE OF THE STUDY
:.0 DURATION OF THE PROJECT
:.: OBJECTIVE OF STUDY
:.; TYPE OF RESEARCH
:.< SAMPAL SI=E AND METHOD OF SELECTING SEMPAL
:.> SCOPE OF STUDY
:.6 LIMITATION OF STUDY
;. FACT AND FINDING
<. ANALYSIS AND INTERPRETATION
>. S8OT ANALYSIS
6. CONCLUSION
?. SUGGESTION
7. APPENDI3
95. BIBLIOGRAPHY
CEMENT INDUSTRY IN NORTHERN INDIA
L!%"i#, $)@ii)# i# %&%AiB! N)&*!&# I#"i% ,&!- A!m!# m%&C!.
Based on (MA data$ -orthern !ndian cement manufactures have consistenty operated at
the highest eves of capacity utii#ation among !ndia:s five regions% )e beieve this refects
the strong demand in -orthern !ndia for cement products reative to suppy% 6urther$ based
on capacity e0pansions announced by cement manufacturers$ "e e0pect cement pants in
-orthern !ndia to continue to operate at high utii#ation eves and anticipate continued
strong demand for our grey cement products in the near and medium8term% )e beieve that
"e are "e positioned to take advantage of this demand$ as the fourth argest grey cement
manufacturer in -orthern !ndia$ and the argest grey cement manufacturer in the state of
Rajasthan%
S!A)#" '%&,!@ +*i! A!m!# $&)"uA!& i# I#"i%.
)hite cement accounted for ;<%<= of our tota cement revenue and >?%@= of adjusted
.B!T*A from our cement operations in fisca @AA?$ and ;?%?= of revenues and @<%B= of
our adjusted .B!T*A from our cement operations in the si0 months ended September >;$
@AA?% Unike grey cement$ the "hite cement industry in !ndia is highy concentrated "ith the
t"o argest payers accounting for the substantia majority of !ndia:s production capacity%
(onseCuenty$ prices of "hite cement have been reativey ess voatie and saes of "hite
cement have generated more stabe cash fo"s for us even during industry do"nturns in
grey cement% )e aso beieve our position as the second argest producer of "hite cement
in !ndia$ together "ith our nation"ide deivery net"ork$ significanty enhances the overa
brand image of &' (ement%
P&)Dimi- %#" %AA!@@ ) '%&,! &!@!&B!@ )( *i,* Eu%'i- 'im!@)#!.
operations$ "hich "e beieve are sufficient to sustain our operations "e into the future%
Based on independent geoogica surveys of different mines during ;DD< to @AA;$ "e
beieve that our imestone reserves are sufficient to support our current and panned
capacity for appro0imatey EA years for both grey and "hite cement% /Put in risk 8 assuming
"e are abe to rene" our e0isting eases upon their e0piry1 As one of the first cement
producers in -orthern !ndia$ "e "ere abe to choose our imestone reserves in an area "ith
high Cuaity imestone resources% !n addition to ao"ing us to produce "hite cement$ "hich
reCuires high Cuaity imestone$ it aso provides us "ith a cost advantage$ as "e are not
reCuired to purchase s"eeteners to improve the Cuaity of imestone% 6urther$ our
manufacturing pants are in cose pro0imity to our imestone reserves$ resuting in o"er
transportation costs% 6inay$ our mines that suppy our "hite cement pant at 2otan aso
have a suppy of "hite cay$ an important additive necessary for "hite cement production%
Fu%'i- )( $&)"uA@ %#" @&)#, b&%#" #%m!.
)e beieve that brand name and reputation are important to retai purchasers of cement in
!ndia% )e have buit a strong reputation among cement purchasers by consistenty providing
high Cuaity products% )e beieve that there is strong customer a"areness of our brands$ &'
(ement /3Sarvashaktimaan71$ for grey cement in our principa market in -orthern !ndia$ and
&' )hite /3(ame71$ for "hite cement across !ndia% 6urther$ "e beieve that our brand name
and our reputation for consistenty suppying high Cuaity products provide us "ith a
competitive advantage in ensuring that cement deaers carry our products%
ED!#@iB! m%&C!i#, %#" "i@&ibui)# #!+)&C.
)e have a "ide distribution net"ork for grey cement in -orthern !ndia% )e aso have a
strong a8!ndia distribution net"ork for "hite cement% Our distribution net"ork for grey
cement products consists of EE feeder depots serviced by seven regiona saes offices in
*ehi$ ,aryana$ Uttar Pradesh$ Punjab$ Rajasthan$ Madhya Pradesh and 2ujarat% Our "hite
cement net"ork comprises @A feeder depots serviced by ;> regiona saes offices in *ehi$
(handigarh$ Uttar Pradesh$ )est Benga$ Andhra Pradesh$ Tami -adu$ 'arnataka$ 'eraa$
Maharasthra$ 2ujarat$ Madhya Pradesh and Rajasthan% !n addition$ "e have more than
E$AAA retai stores that stock our grey and "hite cement products$ as "e as @@ saes
promoters and four handing agents% )e beieve that the e0tent of this net"ork$ and our
reationships "ith our deaers$ enabes us to maket and distribute our cement "idey and
efficienty
ED$!&i!#A! %#" !A*#iA%' C#)+/*)+.
)e have >A years of e0perience in the !ndian cement industry$ "hich "e beieve
provides us "ith the skis to ma0imi#e production efficiency$ e0pand production capacity
Cuicky and reduce costs% Over the years$ "e beieve that "e have deveoped ong8term
customer reationships and a strong reputation for Cuaity% !n addition$ "e have a proven
track record of upgrading and moderni#ing our production capabiities efficienty$ having
increased our production capacity at -imbahera by more than FA=$ from ;%?E miion
tons in ;DDF to @%F miion tons as of September >A$ @AA?% 6urther$ "e have a stabe
and e0perienced midde and senior eve management team$ many of "hom have been
"orking in our cement operations for more than @A years% Our -imbahera
manufacturing faciity "as chosen by the )ord Bank and the *anish !nternationa
*eveopment Agency as one of the four training centers in !ndia to serve as the
3Regiona Training (enter7 for -orthern !ndia% There are ony four regiona training
centers for the cement industry in !ndia$ and "e beieve our operation of the training
center provides us "ith access to state of art training aids$ ive "orking modes$ and
technica e0pertise deveoped by "e kno"n nationa and internationa cement
producers%
INTRODUCTION TO THE COMPANY
OVERVIE8 OF J K CEMENT 8ORKS
9.9 HISTORY BEHIND J K CEMENT
T*! i#ii%' GJ.K.G @%#"@ ()& % (%*!&/ @)# !%mH #%m!'-. Ju,,i'%' K%m'%$%* Si#,*%#i%
& %'% organi#ation started in the year ;FFE at (acutta% & %'% started their business as
a 6inancier$ !nvestor$ Trading Suppier of cotton bets and manufacturer of sma machinery
parts ike G+H bets$ etc% They estabished fe" sma cotton te0tie industries aso%
!n the year ;D;E they shifted their business from (acutta to 'anpur "here they
estabished many big industries ike &%'% cotton Mis$ Stra" product (o$ 4ohia Mach$ &%'%
Pup and Raymond:s )ooen$ etc%
!n the year ;D>E &%'% organi#ation started one more division$ as &%'% Synthetics 4td%
They estabished various big pants of -yon$ Acryic fiber$ etc% at 'ota and Tyre (ord$
(hemica and Pesticides at &haa"ar%
!n the year ;DBE under the same division one more unit "as started for
manufacturing of 2rey (ement at -imbahera%
The present cement factory "as commissioned in the year ;DBE% The pant started its
production from @Bth *ec ;DBE%
!st pant I kin "as commissioned in ;DBE and the capacity of this pant "as DAA tons per
day and > akh tons per year% After modification in Preheater$ its present capacity is ;@AA
TP*%
.0pansion of this pant took pace in the year ;DBD$ "hen @nd kin "as commissioned
"ith a capacity of ;@AA tons per day and B akh tons per year% After modification in
Preheater its present capacity is ;FAA TP*%
Again in the third phase$ a kin "as erected in the year ;DF@ and production of this kin
"as ;>?A tons per day%
consisted of precacination process$ "hich raised the capacity of this pant to >EAA tons
per day$ "hich "as earier ;>?A tons per day% !n Aug%8@AA> after again some modification in
Preheater and 6oe0 cooer its capacity is increased to ?AAA TP*%
Besides$ &%'% cement pant is having its o"n diese generator sets$ producing po"er to
meet the po"er energy reCuirements%
Main ra" materia for cement is 4!M.STO-.$ for imestone "e have our o"n open cast
mines adjoining to the pant% Besides "e have deveoped fe" more mines at Maiakhera$
'aroonda and Tiakhera for producing ;A$AAA tonnes imestone per day as needed%
& %'% (ement erected one more pant from &an% @AA; "ith the capacity of ;EAA tonnes
per day at viage M%#,&)'% !n -ov%8@AA> after modification in Preheater and instaation of
Mechanica eevator its capacity increased to @@AA TP*%
*ue to po"er shortage as imposed by Ajmer eectricity suppy board &%'% estabished its
o"n T*!&m%' P)+!& P'%# at viage Bamania$ near Shambhupura$ "hich is generating ;?
M%)% po"er every day$ "hich is consumed by &%'% (ement Pant%
& ' (ement aso has a pant of EAATP* instaed capacity of )hite (ement at 2otan$
-agaur /Raj1%
&%'% (ement has started the foo"ing projectsJ
Cement Project at Karnataka of over 5500 TPD and Thermal Power Plant of capacity 30
MW
T*!&m%' P)+!& P'%# % Nimb%*!&% )( 00 M8.
8%@! H!% R!A)B!&- P'%# % Nimb%*!&% )( 9< M8 A%$%Aii!@.
Bhumi Poojan of Dr Gaur Hari Singhania Technical University at Bhatewar, Udaipur
&%'% cement is one of the most productive$ cost efficient cement producing pant in the
country$ a company$ beieving in corporate responsibiity to society$
!ntegrity and fairness% The company:s cement is sod under the &%'% Sarva Shaktimaan
brand name$ enjoys good brand image and a price premium%
The foo"ing types of cements are produced by & ' (ement )orks%
/a1 Ordinary Portand (ement /OP(1
/b1 Portand Po##oana (ement /PP(1
/c1 Super Siicate (ement /SS(1
/d1 Masonry (ement /M(1
&% '% (ement manufactures and markets cement and cinker for both domestic as "e as
e0ports markets%
9.0 PRESENT CAPACITY AND PERFORMANCE
9.0.9 CLINKER PRODUCTION
!st Pant I 'in ;@AA Tons Per *ay /TP*1
!!nd Pant I 'in ;FAA TP*
!!!rd Pant I 'in ?AAA TP*
!+th Pant at Mangro @@AA TP*
T)%' C%$%Ai- 95055 TPD
9.0.0 PRODUCTION ANALYSIS TABLE. IN TONS
Y!%& C'i#C!&
(ement
@AA?8A< >;BA@<F >?;;A@@
@AA<8AB @DAB;D< ><EAF@>
@AAB8AF @D;BAE? >B<?F??
9.0.: FINANCIAL ANALYSIS. IN R@. I C&)&!@
Y!%&
Tu&#)B!&
PBT
@AA?8A< ;;AF%B ?@%@
@AA<8AB ;?@D%B @B@%A
@AAB8AF ;F;@%F >E<%<
0. MANAGEMENT SET/ UP
0.9 C)&$)&%! L!B!'/ K%#$u&
(hairman 8 *r 2aur ,ari Singhania
Managing *irector 8 Shri 5 P Singhania
2roup .0ecutive President 8 Shri R 2 Baga
0.0 U#i H!%" L!B!'/ Nimb%*!&%
President 8 Shri *% Ravishankar
J K Organization
! " #ement $td
! " %hite #ement %or&s Gotan, 'agaur
! " #ement %or&s (Grey #ement)
* ! " #ement %or&s, 'im+ahera
, ! " #ement %or&s, -angrol
. ! " Thermal Power Plant, Bamania
/ Projects0
! " Thermal Power Project, 'im+ahera
! " #ement Project, "arnata&a
:.9 J K MARKETING ORGANI=ATION
The ,ead office of Marketing *epartment of & ' (ement 4td% is at *ehi$ "hich is headed by
Sr% + P /Marketing82rey (ement1 and Sr% + P /Marketing8)hite (ement1% The )hite
(ement is sod a over !ndia and the 2rey (ement is sod in the States of Rajasthan$ M%P%$
U%P%$ ,aryana$ Punjab$ 2ujarat and *ehi% )ith the commissioning of &% ' (ement Project$
'arnataka Southern region "i aso be covered for 2rey (ement%
:
.0 R!,i)#%' T&%i#i#, C!#&!
The Regiona Training (entre 8 -orth is a premier training centre of -orth !ndia promoted
"ith assistance from )ord Bank$ *A-!*A and 2ovt% of !ndia as a uniCue ,R* project in
(ement !ndustry is aso attached "ith & ' cement )orks as 4ead Pant% !t is eCuipped "ith
modern training aids and caters to the ski enhancement and competency deveopmenta
needs of more than @A cement and other pants% !t has trained over ?AAA technica and
manageria personne during the ast ;@ years%
The centre has conducted many taior8made in8house programs for cement and other
industries in !ndia and abroad incuding for Oman (ement$ Oman and Star (ement$ *ubai%
RT( has speciai#ed packages I modues in Mining$ Process$ Maintenance discipines ike
Operation 9 Maintenance of ,.MM I 2ear Bo0es I Pumps I (ompressors I .ectrica 9
.ectronics .Cuipments I .nergy (onservation I .nvironment Management and Machinery
Aignment$ etc% designed and deveoped by reno"ned !nternationa I -ationa agencies ike
64S *enmark$ -((BM$ TATA !nteractive Systems$ +.($ -!TTTR$ etc% More than ;AA
senior ine mangers from ten pants have been trained at *enmark$ -!TTTR$ Bhopa and
(hennai$ "ho act as resource persons for these programs% Besides$ O.M:s and
management e0perts of nationa repute are invited for various technica and management
programs to make them effective and gainfu e0perience for the participants%
;. SOCIAL RESPONSIBILITY
E"uA%i)#%' @!&BiA!@.
(onstruction of rooms in 2ovt% (oege at -imbahera%
Running &' !nstitute of Technoogy$ !T! in five trades affiiated to -(+T%
Running ;AK@ (BS. affiiated schoo
Running Regiona Training (entre for (ement technocrat:s aided by )B 9 *A-!*A%
+arious constructions in nearby govt% Schoos of (hittorgarh district%
)e are invoved in girs schoo /under construction1 and committed reasonabe
financia contribution for above
M!"iA%' @!&BiA!@
Rs% >< acks contribution for the construction of govt% ,ospita at -imbahera%
Ambuance to govt% ,ospita%
6ree faciity of pathoogica aboratory for the persons of surrounding area%
6inancia contribution to various -2OS for medica camps in the district%
6inancia contribution for construction of dispensary 9 heath centre in nearby
viages%
6ree ,omeopathic consutancyImedicines for the patients of nearby area%
R!'i,i)u@ @!&BiA!@
Sports infrastructure ike "ooden badminton court$ tabe tennis court$ biiard room$
and cricket ground$ voeyba ground in coony campus%
Sponsoring a !ndia youth footba$ voey ba and badminton tournaments%
Sponsoring inter8district tournaments%
Arranging summer camps for various sports%
O*!& @)Ai%' @!&BiA!@
"
B
1
2
$
3
B
1
'
3
'
1
B
3
'
G
U
2
S3$4S
P25-5T15'
67
,67
/67
867
967
S3$4S
P25-5T15'
3:42ST1S-4'T
SA4.S PROMOT!O- A+.RST!SM.-T
&%'% ><= ;?=
B!R4A FA= <?=
B!-A-! <<= <A=
BA-2UR ?F= ?@=
= STATUS
A8@? POOR
@?8?A 2OO*
?A8B? +.R5 2OO*
MARKET SHARE OF VARIOUS BRANDS IN CHITTORGARH REGION ./
Sales
!"
B12$3
B1'3'1
B3'GU2
5TH42S
BRA-* Saes
&%'% >A=
B!R4A EA=
B!-A-! @A=
BA-2UR B=
OT,.RS >=
S ./ STRENGTH
8 ./ 8EAKNESS
O ./ OPPORTUNITY
T ./ THREATS
S8OT ANALYSIS
S O STR.-2,TS
&%'% (ement possess good brand image in the e0isting market "hich is definitey
a part of pavement brick for it%
4ocation has a"ays been an important factor in Rajasthan e0tensive
/about @?AA MT1 of cement grade imestone avaiabe%
Oder pant has "e kno"n brand name in market%
2ood pant having ;A$AAA tones per day%
) O ).A'-.SS
4o" saes as compared to market potentia% The market potentia of the Udaipur
market is high but as compared to it the saes of &%'% (ement is o"%
4ack of sef O enthusiasm in the "orking pattern of the e0ecutives as a resut the
aggressiveness to"ards saes is o"%
,igh compaints of Cuaity deterioration in &%'% super brand%
4ess advertisement and negigibe saes promotion schemes as compared to
other brands%
Monopoy of deaers is affecting the saes%
O O OPPORTU-!T5
.0posure of Cuaity$ "hich is aready god but not dispayed in market%
More advertisement%
(ompetitive prices%
Making good deaers and penetrate the market up to retaier eve%
May increase the discount and margin structure for the retaiers and deaers%
T O T,R.ATS
Some deaers are avaiabe at present$ "hich "ere not reputed I efficient%
Other companies advertising poicy%
Price fuctuation and price "ar "hich is genera phenomenon in this cement
industry%
Luick avaiabe I suppy of other cement industries are creating for &%'% (ement%
C ONCLUSION
(ement is sti a seing product in country ike !ndia% !t is the company "ho has to find the
market and go the prospect rather then the cient directy approaching to the company% The
opening up of the sector has aso resuted in stiff competition as many private companies are
entering in% so it becomes very important to be the best out of the market % this $ the company
can achieve by offering vaue added services to the customers by giving them ma0imum
benefits% (ompany is trying to given more assured returns to the investors% Mosty products are
based on the -A+ or they unit 4inked so a"areness$ kno"edge and brand image of the "i be
product the first priority for the company%
SUGGESTION
A company "oud b "ise to measure customer satisfactions reguary the key to
customer retention is customer satisfaction%
(ompany can increase the roe of the retaier by considering their suggestions or
compaints about service or product$ so that necessary action can be taken%
Revie" meetings shoud be often hed so that the "orking pattern of the e0ecutives can
be checked and improved if needed%
.0ecutives need to be more sef8enthusiastic and aggressive to"ards saes for these
appraisas shoud be gives to those e0ecutives "ho "orked hard%
(ompany representatives shoud visit retaiers and shoud make a ong term
reationship "ith the retaier so that they can push the product%
Since customer are vaue ma0i miser and their e0pectation to this brand is high$ as the
brand image sho"s their compaints shoud be attended immediatey to make then
remain brand oya%
!t shoud be checked that the non8 trade consignment is not sod in the market$ so that
is does not disturb the retai price of the market%
Since transportation forms the major part of the cement cost$ market potentia of the
region shoud be propery accessed so that emphasis can be more on high retention
#one$ "hich can be done by empoying more authori#ed retaiers%
Stockiest shoud be convinced to pass the incentives to the retaiers so that they are
motivated to promote this brand%
(ompany shoud increase the promotiona and advertisement activities for giving the
popuarity to the product%
(ompany shoud set the poicy on pricing% There shoud be certain time period for
increment and decrement in the pricing% (ompany shoud aso give the prior information
for this to deaers and retaiers%
There shoud be proper oading faciity in the pant and out side the pant$ deivery of
goods shoud be on time%
Top management and e0ecutives shoud maintain proper communication "ith deaers
and retaiers%
!ncrease the number of deaers and retaiers as this "i hep in making high saes
voume%
(ash discount shoud be competitive and uring%
Try to remove deaer:s monopoy%
ANNE3URE
NAME.
CONTACT NO.
L;% )hich brand you preferV
L@% )hat you consider before purchasing cementV
L>% )hich brand is more sod among the customerV
LE% )hat is your monthy turn overV
L?% )hat are the reason to adopt the particuar cement 9 )hyV
L<% Are you satisfied "ith company:s serviceV
LB% )hich type of advertising do you fee is more effectiveV
LF% )hich company:s saes promotion do you ikeV
LD% *o you think it is fruitfuV
L;A% Are you satisfied "ith your brandV
T
L;;% )hich company provides ma0imum discount rateV
L;@% *o you fee any change in &%':s discount structureV
L;>% 2enera probem faced by you in this tradeV
L;E% Are you interested to take deaership of &%'% (ementV
L;?% )oud you ike to give any suggestionV
BIBLIOGRAPHY
F!!"in# $%r&'$ "'r' %n('rtak'n in &m)!'tin# )r*'&t r')rtJ8
BOOKS./
Marketing management 'oter Phiip
Principes of marketing 'oter Phiip
Making marketing "ork 2ard ears and Patrick 6orsyth
Business research method (ooper and Schinder
Marketing research Beri 2 %(%
Statistics 2upta S%(
(ement journa of (MA
8EB.
;% """%&'(.M.-T%com
@% """%&'),!T.%com
>% """%R.*!66%com
E% """%india8today%com
PUBLICATIONS.
;% Business Standard
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