Group Members

ANAND KHARADI
(1212)
UMESH MAKWANA
(1213)
SAUMIL TRIVEDI
(1227)
GAURANG DESAI
Case at Glance

 Cement industry in India

 Characteristics of indian cement industry
 Technology
 Production Centers
 Reasons for Government encouragement
 Company Profile
 Market Situation
 Marketing Problem in rural areas
 Suggestions
About cement industry in
India
 In 1992-93 fourth largest producer with 60 million
tonnes but installed capacity was 70.50 million
tonnes
 And future production would goes to 100 million
 The different types of cement produced like
ordinary portland, portland pozzolona, portland
blast furnace, low heat cement, special high
strength cement, oil well cement, coloured and
white cement
Characteristic of indian
cement industry
 Demand had been affected by variety of factors
like cut down govt. expenditure on development
activites
 Inflationary trend lead to slow down of
construction in urban areas
 Many mini cement plants had been set up with
govt. encouragement to increase supply
Technology
 Wet process technology was used but it was high
fuel consumption
 Modern dry process technology which save coal
consumption upto 40 to 45% as compared to wet
process
 The latest precalcinator technology which
optimum power utilization could be achieved
 But the modern teechnology required investment
180 to 200 crores for a single plant which is
impossible for small companies
Production centres
 The production centers located near availability
of raw material like limestone.
 90% of limestone were in Madhya Pradesh,
Tamil Nadu, Andhra Pradesh, Rajasthan,
Gujarat, Bihar, karnataka.
 Production and consumption of cement

Region production consumption

West & south 77% 57%
North & east 20% 43%
Reasons for govt. encouragement

 Utilization of limestone reserves

 Infrastructural requirement of mini cement plants
much less
 Inherent rural development and employment in
these plants
 Cost involved in having captive power unit was
less
 Mini plants produced less quantity with better
quality
Company profile
 Central India cement company was set up in 1983
with capacity of 1 million tones per year

 The manufacturing plant in Madhya Pradesh

 Aditya Kaul – the director of company

 Mr. Nitya Bansal – vice president of company

 In mid 90’s production capacity 2.5 million tonees p.y

Market situation
 There were 90 players in cement industry and
ACC enjoyed 15% market share while CICC
enjoyed 3.4%

 The company decided to enter into rural market

of UP and Bihar but there was dominant player
ACC.

 The company set up sales strategies to cover

through regional marketing office and it was
divided in area marketing office
Marketing problem in rural market

 In rural area mostly user were farmer but influence

of a mason when buying first time which shows very
low awareness about cement
 Village Mukhia also a strongest influence for buying
cement which means people will buy whatever brand
Surpanch said
 Word of mouth was a communication because of low
literacy
 Price was one of the main problem because people
will buy only low price products
 Competitor is also well establish so necessary to
compete with ACC
Cont…
 Production capacity and installed capacity is very
differentiated
 Availability of raw material in rural areas is lack so
transportation facilities are expensive
 Difficult to set up cement industry in rural area because
of unskilled labor supply
 People are unaware about different type of cement in
market
suggestions
 After a structured questionnaire and getting the views of people of
village it will be easy to find out solution
 Know about customers ideas about different brand name
 For which purpose they required cement
 In which quantity they would like to purchase
 How would they like to purchase i.e. by others view or own perspective
 Availability of cement of CICC in rural areas
 Advertising of cement in different ways that can be understand by
even illiterate customer
 Company also require to produced more cement to send in rural areas
Cont..
 Company should make a mini industry which can
supply cement quickly in rural areas and raw material
are available there
 Need for proper work force and distribution channel to
achieved maximum customers.
 To take initiatives of building basic amenities by
promoting the cement brand
 Try to influence MUKIYA of the village to promote
CICC brand
 Provide attractive incentives to masons to utilize our
brand cement