An Overview on the Ready Mix Concrete (RMC)

MarketResearch Process and Methodology

Research Process
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Satge Satge Satge Satge Satge Satge Satge

1 2 3 4 5 6 7

Preliminary
Research
Scope &
Objective
s

Establishin Secondary Validation Review

Final
Execution
g key
of stage
activities
conclusio
Methodolog
research
Metrices
1,2,3
and
ns/Recom
y
Activities
primary Brief
mendatio
Defining
Presentatio
research
ns
overall
n
activities
sample
size
Resource
allocation
s

Stage 1

Understand the subject and define the scope & objectives

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To find out market potential present in RMC segment and the

competitive analysis of major players of this segment

Objectives

1. Understand the market

2. Understand the different grades of product and its usage
3. Customer Segmentation and purchasing behavior
4. Analyzing the consumers market in specified region in terms of product

awareness, proposed development in vicinity areas etc.

5. Ball park estimation of market potential in given product category for

next decade
6. Map the prevailing players profile with respect to plant location, sales,

distribution method, market share etc.

Stage 1
Overview and Definition
Ready Mix Concrete (RMC)

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Ready-mix concrete (RMC) is a ready-to-use material, with predetermined mixture of

cement, sand,
aggregates and water. RMC is a type of concrete manufactured in a factory according
to a set recipe or
as per specifications of the customer, at a centrally located batching plant.

Types of RMC

There are three types of RMC depending upon the mixing of the various ingredients
as given below :

a) Transit mixed concrete

b) Shrink mixed concrete
c) Central mixed concrete

a) Transit Mixed Concrete

It is also called dry batched concrete because all the basic ingredients including
water are charged directly into the truck mixer. The mixer drum is revolved fast at
charging speed during the loading of the material and after that it continues rotating
at a normal agitating speed
b) Shrink Mixed Concrete
The concrete is partially mixed in the plant mixer and then balance mixing is done in
the truck mounted drum mixer during transit time. The amount of mixing in transit
96mixer depends upon the extent of mixing done in the central mixing plant. Tests
should be conducted to establish the requirement of mixing in the drum mixer.
c) Central Mixed Concrete
It is also called central batching plant where the concrete is thoroughly mixed
before loading into the truck mixer. Sometimes the plant is also referred as wetbatch or pre-mix plants.
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RMC Benefits
Easier, faster and better quality construction.
Time saving and reduced wastage of raw material
Elimination of storage space for basic materials like aggregates , sand etc at
site
Elimination of procurement /hiring of plant and machinery
Labour associated with production of concrete is eliminated.
Organisation at site is more streamlined.

RMC INDUSTR : INDIA : HIGHLIGHTS

Estimated Annual Concrete Consumption in the country: 165 million cubic metre
( Hindu , June 4 2005)
India spends 9% of its GDP on infrastructure compared to China which spends close
to 30%
Per capita consumption of cement in India in 2010: 148 kg
Global Average per capita consumption of cement: 260 kg
Country is dotted with 140 to 150 commercial RMC units
Employment to 30000-35000 people directly and around 50000-60000 people
indirectly
RMC industry pegged at 2000-2500 crore growing at around 25-35% over the last 5
years.
RMC segment churns out an average 28000-30000 cubic metres of concrete every
day.
L& T, Grasim , ACC , RMC India are major players with pan India presence and
market share of 75-80% .
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 Schwing Stettar India (SSI) is a 100% subsidiary of Schwing Group of Companies

manufacturing equipment for concrete preparation , transportation , placement and
for recycling concrete.
Cement consumed by RMC units is currently around 8-10% of the total cement
produced in India while the same is around 60-65% in developed countries( Source :
Economy & Business , March 26 , 2006).

Stage 2
Setting the Research Process

Research design process

Categories of research

Define the research problem

Specify the information required to help react the

Estimate the value of the information to be provided by the research

Using either judgement or the expected value approach

estimate the value of information with varying levels of
accuracy
Determine the data collection method
Determine whether secondary data, a survey or
experimentation will produce the required data and choose
the form of the selected method(s) to use
Select the measurement techniques
Determine whether and how to use questionnaire attitudes
scales, observation etc.

Explorato
ry
Research

is concerned with discovering

the general nature of the
problem & the variables
relate to it. It is characterised
by a high degree of flexibility
and it tends to rely on
secondary data, convenience
or judgement samples

Descripti
ve
Research

is focused on the accurate

description of the variables in
the problem model. Consumer
profile, market potential
studies, sales analysis are
examples of this.

Casual
Research

attempts to specify the nature

of the functional relationship
two or more variables in the
problem model

Select the sample

Determine who and how many respondents or objects to

measure
Select the analytical approach

Determine the appropriate means of analyzing the data to

provide the required information

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This is Exploratory and

Evaluate
ethics of the research
descriptive
type ofthe
research
Review all the aspect of the research

Specify the time and financial cost

For each research approach, estimate time & financial cost and
compare to actual value of information & time

Stage 2
Setting the Research Process-Sampling Techniques &
Considerations

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Stage 3
Secondary Research

In depth secondary research using appropriate database and other

secondary sources
Online journals
Industrial magazines, texts
Internal database
Previous TBT findings
Primary interviews with industry experts, existing players , government officials,
Architect , consultant and end users.
Contact list development
Discussion guide /Questionnaire
Discussion data collations & analysis
Management review of findings & draft report

Also Note: The Methodology will also include several follow-up calls, profiles exchanges,

emails, and the documentation as when required at various stages

Stage 3
Secondary Research-Preview of contact list and sample
questionnaire
Sample Contact List:

Sample Questionnaire
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Compa
ny
Name

Locati
on/Ad
dress

Con
tact
no.

Con
tact
Pers
on

Des
igna
tion

ACC
concre
te Ltd

Mum
bai

XXX
X

XXX
X

XXX
X

Conta
ct no.

XXXX

Em
ail
id

XXX
X

Web
address

XXXX

Questionnaire will vary

different group of respondents

Analysis, Findings

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Demand estimation Actual vs Potential

450
400
350
300
250
Volume

200
150
100
50
0

Y 07-08

Y 08-09

Y 09-10

Y 11-12

Parameter
Details

Y 07-08

Y 08-09

Y 09-10

Y 11-12

Demand of
cement

XXX

XXX

XXX

XXX

Output of
Cement

XXX

XXX

XXX

XXX

Demand of
RMC

XXX

XXX

XXX

XXX

Output of
Concrete

XXX

XXX

XXX

XXX

Net
Requirement

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

Volume
Potential

The parameters and models will be finalized after a

mutual discussion
Stage 4, 5, 6
Primary Research

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 Mid level marketing manager, project manager, production

manager on the topic of Cement Industry & RMC Industry will be
interviewed by TBT.
Participate in their companys view on the overall construction
industry-growth,

trends,

investments,

locations,

competitive

trends, drivers, challenges, market size, recommendations,

forecast, forward looking statements etc. Several manufactures
on the price trends, technology, distribution, sales trends,
customer buying behaviour etc.

Analysis the
customer
requirements
Qualitative &
quantitative
analysis
Brainstorm &
develop
concepts &
ideas

The following professionals will be surveyed:

Government officials
Consultants/ Architects
Builders
Logistics companies

Stage
7
Define/ re-define product /service
based
on the concepts ideas on
the voice of customer analysis
Form an Internal & External Cross Functional Team (CFT)
Product Matrix-Pricing Matrix-Network/Service Mapping-Distribution
Existing players profile mapping
Cities profiling in terms of demand

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Each stage of the project will be executed in detail based on

specified requirements from the Client after a mutual
discussion.

THANK YOU

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