65290933 shree cement mar report (1)

8/12/2019 65290933 Shree Cement Mar Report (1)

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SUMMER TRAINING REPORT

Shree Cement Limited

Market perception of shree Cement In terms of marketin mi!"

Submitted in partial fulfillment for theA#ard of Degree of

Master of $%siness Administration

S%&mitted $' () S%&mitted To ()Sanjay Choudhary Miss. Shubhangi MademMBA PART- III Facu !y of Managemen!S"SSI#$-%&'&-'%

St* +i,fred-s Instit%te of Mana ement . Techno,o '/

Mansaro0ar/ 1aip%r


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PRE2ACE

The summer !raining (rojec! of managemen! course ( ays an im(or!an! ro e for a

managemen! s!uden! !o de)e o( him in!o a *e groomed (rofessiona . I! (ro)ides

him !he !heore!ica conce(!s and (rac!ica e+(osure in !he fie d of a(( ica!ion.

Summer !raining (rojec! a so (ro)ides him an idea of dynamic and )ersa!i e

(rofessiona *or d as *e as an e+(osure !o !he in!ricacies and com( e+i!ies of

!he cor(ora!e *or d.

My summer !raining in S3REE CEMENT LIMITE4 ,ai(ur *as an eye o(ening

e+(erience !o see !he e)e of cus!omer sa!isfac!ion among (eo( e of !he jai(ur

ci!y oca area

During MBA (rogram I *as !augh! abou! !*o do en subjec!s *hich if no! a(( ied

(ro(er y are a sim( e *as!e of !ime. A! S3REE CEMENT LMITE4 I go! a

chance !o a(( y managemen! !heories !o !he a!es! com(e!i!i)e and mar/e!ing

orien!ed en)ironmen!.

In !*o mon!hs of mar/e! e+(osure0 I earned a o! of )arious as(ec!s of

organi a!iona s!ruc!ure0 de(ar!men!s0 sa es0 communica!ion and !heir im(ac!.

$o* I can say one !hing !ha! !he bes! *ay !o earn is a! *or/. I! *as a rea

in!eres!ing e+(erience and I enjoyed e)ery (ar! of i! and ho(e !ha! i! *ou d be

he (fu in my fu!ure.


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)( CONTENTS :-1 Industry overview 9

1.1 Cement industry in India 91.2 Major P ayers in Indian Cement Industry 1!1." Pro#ess Te#$no o%y 111.".1 &aw Materia s 'or Cement Produ#tion 111.( Pro#ess 111.(.1 Sta%es o' Cement Produ#tion 121.) Ty*es o' Cement 1)1.+ S#a e o' O*erations 1,1.+.1 Industria *rodu#tion 1,1., E *orts 2!1. Po i#y Initiatives 22

1.9 /uture Out oo0 221.1! Si%ni'i#ant Conso idations 221.11 Com*etitor Environment na ysis 2(

P &T-22 Com*any Overview 3 S$ree Cement 4imited 2)2.1 Introdu#tion 2)2.2 5ision o' SC4 2+2." P$i oso*$y o' SC4 2+2.( Mission o' SC4 2,2.) SC4 manu'a#turin% units 2,2.+ 6usiness Mana%eria C$a en%es 'or SC4 "!2., Mar0et o' SC4 "12. SC47s 6rands Produ#ts "22.9 Stren%t$s o' SC4 "22.1! SC47s Man*ower *ro'i e ")2.11 8ey O*erationa i%$ i%$ts "+2.12 &e#o%nition and wards (22.1" SC4 vis- -vis Com*etitors (22.1( In'ormation Te#$no o%y at SC4 (+2.1) 6an%ur Cement 3 SC47s Premium 6rand (2.1+ Com*arison ;etween various #ement ;rands )!

P &T-"" Mar0etin% resear#$ )"".1 C assi'i#ation mar0etin% resear#$ )(".1.1 Pro#ess o' mar0etin% resear#$ ))".2 &esear#$ met$odo o%y )+".2.1


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P &T-(( =uestionnaire ,!

Per'orma o' =uestionnaire ,1su; dea er re*ort ,2 P &T-)

).1 Con# usion ,).2 &e#ommendation ,9)." 6i; io%ra*$y we; io%ra*$y 1

4ist o' ta; es2.1 S$ree- Mar0et S$are 2+2.2 Mar0et C assi'i#ation 'or S$ree Cements 4td. "22." SC4 8ey /i%ures (22.( SC4 'i%ures vis- -vis #om*etitors ("2.) SC47s 5aria; e Cost Com*arison wit$ ot$ers ((2.+ Power Cost Com*arison ()2., E6IT< Mar%in Com*arison ()

E5ECUTI6E SUMMAR7

Cemen! is a /ey infras!ruc!ure indus!ry. I! has been decon!ro ed from (rice and

dis!ribu!ion on ' s! March0 '121 and de icensed on %3 !h,u y0 '11' Moreo)er i! is

!he ma!eria *hich ( ays an im(or!an! ro e in bui ding no! on y !he co ossa

s!ruc!ures bu! a so our dreams in !he form of our houses0 /ee(ing us (ro!ec!ed

agains! !he changing c ima!e. #ur coun!ry !a/es !he (ride of being !he second

arges! manufac!urer of cemen! in !he *or d (receded by on y China. 4e ha)e

cons!an! y been e+ercising one of !he bes! (rac!ices of cemen! (roduc!ion0 gi)ing

rise !o (roduc!i)i!y0 5ua i!y and efficiency.

The cemen! indus!ry in India is e+(eriencing a boom on accoun! of !he o)era

gro*!h of !he Indian economy. The demand for cemen!0 being a deri)ed demand0

de(ends (rimari y on !he indus!ria ac!i)i!y0 rea es!a!e business0 cons!ruc!ion

ac!i)i!y0 and in)es!men! in !he infras!ruc!ure sec!or. India is e+(eriencing gro*!hon a !hese fron!s and hence !he cemen! mar/e! is f ourishing i/e ne)er before.

Indian cemen! indus!ry is g oba y com(e!i!i)e because !he indus!ry has

*i!nessed hea !hy !rends such as cos! con!ro and con!inuous !echno ogy u(

grada!ion. I! is be ie)ed !ha! cemen! demand in India is e+(ec!ed !o gro* a! '&6


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annua y in !he medium !erm buoyed by housing0 infras!ruc!ure and cor(ora!e

ca(i!a e+(endi!ures.

As men!ioned abo)e0 !he Indian cemen! indus!ry is !he second arges! (roducer

of 5ua i!y cemen!0 *hich mee!s g oba s!andards. The cemen! indus!ry com(rises

more !han 3& cemen! com(anies *i!h '7& arge cemen! ( an!s *i!h an ins!a ed

ca(aci!y of '38.%8 mi ion !onnes and more !han 7&& mini cemen! ( an!s *i!h an

es!ima!ed ca(aci!y of ''.'& mi ion !onnes ma/ing a !o!a ins!a ed ca(aci!y of

'89.78 mi ion !onnes.

Con!inuous !echno ogica u(grada!ion and assimi a!ion of a!es! !echno ogy has

been going on in !he cemen! indus!ry. Indian cemen! indus!ry is modern anduses !he a!es! !echno ogy. India is a so (roducing differen! )arie!ies of cemen!

i/e #rdinary Por! and cemen! :#PC;0 Por! and Po o ana cemen! :PPC;0

Por! and B as! furnace S ag Cemen! :PBFS;0 #i 4e Cemen!0 Su (ha!e

Resis!ing Por! and Cemen!0 4hi!e Cemen!0 e!c.

Fu!ure gro*!h of !he indus!ry is be ief !o be dri)en by e+(ec!ed -)is com(e!i!ors by !a/ing care of a !he com(onen!s of mar/e!ing

mi+. ?ee(ing main objec!i)e of !he s!udy in mind !he sur)ey has been done in

jai(ur ci!y oca area

The me!hodo ogy of !he s!udy con!ains in!erac!ing *i!h dis!ribu!ors and dea ers0

5ues!ioning !hem around !he )arious a!!ribu!es of !he mar/e! !o co ec! !he fac!s

abou! !he mar/e! scenario of !he region and e)en!ua y e+( oring !heir ro e in

mar/e!ing of com(any=s brand


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For (as! !*o mon!hs0 I ha)e been *or/ing as a summer !rainee on !his (rojec!

assigned !o me . The idea *as !o s!udy !he im(or!ance and ro e of )arious

fac!ors of !he mar/e!ing mi+ in !he cemen! indus!ry in !erms of @ua i!y :Produc!;0

Price0 Promo!iona ac!i)i!ies0 Ser)ices !o !he dea er and Dea ers (rofi!abi i!y.

The re(or! a so !hro*s igh! on dea er=s o(inions and (references *hen i! comes

!o discoun!s and benefi!s offered !o !hem and (romo!iona su((or! (ro)ided by

com(any !o he ( dea ers. This informa!ion is )i!a !o !he com(any in forming i!s

s!ra!egy and schemes !o increase i!s mar/e! share.

To s!ar! *i!h an a!!em(! *as made !o unders!and and diagnose !he (re)ai ing

si!ua!ion of Shree=s cemen!. Carrying ou! !he indus!ry ana ysis0 com(e!i!or=sana ysis0 channe ana ysis and S4#T ana ysis did i!. To ge! !he rea mar/e!

scenario0 a sur)ey of dea ers *as conduc!ed !o ge! !heir (erce(!ion abou! !he

(re)ai ing si!ua!ion and !o find !heir e+(ec!a!ions.

According !o dea er=s feedbac/ @ua i!y0 A)ai abi i!y and Profi! margin are !he

fac!ors on *hich Bangur is ra!ed high.

A (osi!i)e re a!ionshi( *as seen be!*een Brand image and @ua i!y of !he

cemen!. A ong *i!h !his !here *as no significan! re a!ionshi( be!*een !he Profi!

margin and !he sa es.

Sur)ey resu !s confirm !ha! SCL has been ab e !o ma/e a mar/ in mar/e! and

(ercei)ed !o ha)e good 5ua i!y and a so !here is a grea! demand of cemen! in

mar/e!. Bu! sur)ey resu !s a so sho*s !ha! des(i!e of abo)e men!ioned (osi!i)e

fac!ors i! has no! been ab e !o ma/e a brea/!hrough in bui ding i!s brand name

!he reason come ou! !o be i!s o* brand a*areness : ac/ of dea er mo!i)a!ion

mee!ings ad)er!ising; and cu!-!hroa! in-house brand com(e!i!ion.

To increase !he brand a*areness aggressi)e (romo!ion need !o be carried ou!

ensuring i!s effec!i)eness in ma/ing a mar/0 a so as sur)ey resu !s confirm !ha!


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i!=s !he dea er mason con!rac!or *ho is !he u !ima!e decision ma/er in choosing a

brand so effor!s need !o be made !o bui d ong !erm re a!ionshi( *i!h a !hese

(eo( e. Mee!ings0 gif!s0 and /i! dis!ribu!ion are !he bes! !oo !o ensure masons

unders!anding and sa!isfac!ion. As dea er ( ay a (rominen! ro e in sa e of a brand

e)ery (ossib e effor! : i/e !raining ( an! )isi! addi!iona margin sufficien! P#P

ma!eria dis!ribu!ion grace (eriod of !hree days for (aymen!; need !o be made a

s!rong dea er ne!*or/.

PART 8

IN4USTR7 O6ER6IE+

8*8 CEMENT IN4USTR7 IN IN4IA

Cemen! indus!ry is a ca(i!a in!ensi)e and cyc ica indus!ry. The demand forcemen! is in/ed !o economic ac!i)i!y0 can be ca!egori ed in!o !*o segmen!s0

househo d cons!ruc!ion and infras!ruc!ure crea!ion.

The Indian Cemen! Indus!ry !oday is !he second arges! in ca(aci!y and

(roduc!ion *i!h an ins!a ed ca(aci!y of around '39 m!(a af!er China. The Indian

Indus!ry char!ed a fas! !rac/ gro*!h of around '&6 (er year on an a)erage

during !he as! decade. Demand has sho*n an u(*ard surge in recen! !imes

buoyed by housing sec!or0 infras!ruc!ure de)e o(men!0 and increase in ca(i!a

e+(endi!ure by cor(ora!e and gro*ing re!ai sec!or. The cemen! demand in !he

coun!ry is e+(ec!ed !o gro* a! an annua ra!e of 26 for !he ne+! fi)e years.


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The Indian cemen! indus!ry is a mi+!ure of mini and arge ca(aci!y cemen! ( an!s0

ranging in uni! ca(aci!y (er /i n as o* as '& !onnes (er day :!(d; !o as high as

93&& !(d. Majori!y of !he (roduc!ion of cemen! in !he coun!ry :1 6; is by arge

( an!s0 *hich are defined as ( an!s ha)ing ca(aci!y of more !han 8&& !(d.

The Indus!ry faces se)era bo!! enec/s in high cos! of in(u!s i/e fue and (o*er0

high !a+es and du!ies and !rans(or!a!ion cos!. More !han 9&6 of !he in(u! cos! in

cemen! manufac!ure is beyond !he con!ro of !he indus!ry and is adminis!ered by

regu a!ory au!hori!ies. These inc ude roya !ies and cess on imes!one0 !ariff for

coa 0 rai !rans(or! and (o*er0 du!ies on finished goods0 name y0 cen!ra e+cise0

oca sa es !a+0 oc!roi0 e!c.

The on y areas *here indus!ry can induce cos! con!ro s and economy are

reduc!ion in consum(!ion of in(u!s i/e fue and (o*er !hrough energy efficiency0

im(ro)ed (roduc!i)i!y !hrough ( anned main!enance and reduc!ion of s!o((ages0

e!c. The con!inuous effor!s by !he indus!ry in !hese areas ha)e brough! in good

resu !s. I! is no!e*or!hy !ha! !he energy consum(!ion by !he mos! efficien! cemen!

( an!s in India a! !he e)e of 883 ?ca (er /g of c in/er and 81 /4h (er !onne of

cemen! are com(arab e *i!h !he bes! achie)ed in !he *or d.

8*9 Ma:or P,a'ers in Indian Cement Ind%str' (4omestic p,a'ers(

'.; ACC imi!ed

%.; Ambuja Cemen!s imi!ed

7.; Bir a Cor(ora!ion imi!ed

.; !raTech Cemen!

3.; Binani Cemen!

8.; Shree Cemen!s imi!ed

9.; India Cemen!s

2.; , ? Cemen!


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1.;


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( an!0 assured a)ai abi i!y of cemen! grade imes!one reser)es of !he order of 3&-

8& m! in !he c ose )icini!y is im(or!an!.

9*< G'ps%m


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C in/er (roduc!ion is !he mos! energy-in!ensi)e s!e(0 accoun!ing for abou! 2&6 of

!he energy used in cemen! (roduc!ion. Produced by burning a mi+!ure of

ma!eria s0 main y imes!one0 si icon o+ides0 a uminium0 and iron o+ides0 c in/er is

made by one of !*o (roduc!ion (rocesses *e! or dryG !hese !erms refer !o !he

grinding (rocesses a !hough o!her configura!ions and mi+ed forms :semi-*e!0

semi-dry; e+is! for bo!h !y(es.

In !he dry (rocess0 !he ra* ma!eria s are ground0 mi+ed0 and fed in!o !he /i n in

!heir dry s!a!e.

In !he *e! (rocess0 !he crushed and (ro(or!ioned ma!eria s are ground *i!h

*a!er0 mi+ed0 and fed in!o !he /i n in !he form of s urry.

The choice among differen! (rocesses is dic!a!ed by !he charac!eris!ics anda)ai abi i!y of ra* ma!eria s. For e+am( e0 a *e! (rocess may be necessary for

ra* ma!eria s *i!h high mois!ure con!en! :grea!er !han '36; or for cer!ain cha /s

and a oys !ha! can bes! be (rocessed as a s urry. The dry (rocess is !he more

modern and energy-efficien! configura!ion. In genera 0 !he dry (rocess is much

more energy efficien! !han !he *e! (rocess0 and !he semi-*e! some*ha! more

energy efficien! !han !he semi-dry (rocess. The semi-dry (rocess has ne)er

( ayed an im(or!an! ro e in Indian cemen! (roduc!ion and accoun!s for ess !han&.%6 of !o!a (roduc!ion.

In '18&0 around 1 6 of !he cemen! ( an!s in India used *e! (rocess /i ns. These

/i ns ha)e been (hased ou! o)er !he (as! 8 years and a! (resen!0 18.76 of !he

/i ns are dry (rocess0 76 are *e!0 and on y '6 are semidry (rocess. Dry (rocess

/i ns are !y(ica y arger0 *i!h ca(aci!ies in India ranging from 7&&- 20&&& !onnes

(er day or !(d :a)erage of %022& !(d;. 4hi e ca(aci!ies in semi-dry /i ns do range

from 8&&-'0%&& !(d :a)erage 3%' !(d;0 ca(aci!ies in *e! (rocess /i ns range from

%&&-93& !(d :a)erage %3 !(d;.

#)er !he as! decade0 increased (reference is being gi)en !o !he energy efficien!

dry (rocess !echno ogy so as !o ob!ain a cos! ad)an!age in a com(e!i!i)e mar/e!.


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Moreo)er0 since !he ini!ia!ion of !he decon!ro (rocess0 many manufac!ures ha)e

s*i!ched o)er from !he *e! !echno ogy !o !he dry !echno ogy by ma/ing sui!ab e

modifica!ions in !heir ( an!s. Due !o ne*0 e)en more efficien! !echno ogies0 !he

*e! (rocess is e+(ec!ed !o be com( e!e y (hased ou! in !he near fu!ure. Due !o

!he dominan! use of carbon in!ensi)e fue s such as coa in c in/er ma/ing0 !he

cemen! indus!ry has been a major source of carbon dio+ide :C#%; emissions.

Besides energy consum(!ion0 !he c in/er ma/ing (rocess a so emi!s C#% due !o

!he ca cining (rocess.

8*? T7PES O2 CEMENT

There are differen! )arie!ies of cemen! based on differen! com(osi!ions according

!o s(ecific end uses0 name y0 #rdinary Por! and Cemen!0 Por! and Po o ana

Cemen!0 4hi!e Cemen!0 Por! and B as! Furnace S ag Cemen! and S(ecia ised

Cemen!.

The basic difference ies in !he (ercen!age of c in/er used.

8*< Ordinar' Port,and Cement =OPC


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!echni5ue is used in i!s (roduc!ion. I! is used !o enhance aes!he!ic )a ue in !i es

and f ooring. 4hi!e cemen! is much more e+(ensi)e !han grey cemen!.

>*< Port,and $,ast 2%rnace S,a Cement =P$2SC


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cemen! and Por! and B as! Furnace S ag Cemen! are used mos! y in !he

cons!ruc!ion of air(or!s and bridges. The (roduc!ion of *hi!e cemen! in !he

coun!ry is )ery ess for i! is )ery e+(ensi)e in com(arison !o grey cemen!. In

India0 *hi e cemen! is usua y u!i i ed for decora!i)e (ur(oses0 marb e founda!ion

*or/0 and !o fi u( !he ga(s be!*een !i es of ceramic and marb e.

The differen! !y(es of cemen! in India ha)e regis!ered an increase in (roduc!ion

in !he as! fe* years. "ffor!s mus! be made by !he cemen! indus!ry in India and

!he go)ernmen! of India !o ensure !ha! !he cemen! indus!ry con!inues inno)a!ion

and research !o come u( *i!h more and more )arie!ies in !he near fu!ure.

8* SCALE O2 OPERATIONS

The cemen! indus!ry has *i!nessed a significan! change in !he sca e of

o(era!ions. In '18'0 !he arges! /i n in o(era!ion had a ca(aci!y of 93& !(d. In

'19&0 of !he !o!a ''1 /i ns0 ' had o)er '0&&& !(d ca(aci!y0 *i!h 33 ha)ing ess

!han && !(d ca(aci!y. In '12&0 '' of !he !o!a ' ' /i ns *ere o)er !he '&&& !(d

mar/0 *i!h ' /i n ha)ing a ca(aci!y arger !han 70&&& !(d :rough y ' m!(a;. The

'11&s sa* s!i higher ca(aci!y 3&&-3&&& !(d :or '.3 m!(a; /i ns. The recen!

(rac!ice for a arge si e ( an! is !o ha)e 803&&-90&&& !(d :or %.3 m!(a; ca(aci!y.

8* *8 Ind%stria, prod%ction(

The cemen! indus!ry is enhancing i!s (roduc!ion e)e s as ne* homes and offices

are being bui !0 and in /ee(ing *i!h !he economy=s annua gro*!h ra!e. According

!o !he Cemen! Manufac!urers Associa!ion0 !he o)era cemen! (roduc!ion rose by

2.'' (er cen! during %&&9-&2 !o '82.%1 mi ion !onnes :m!; as agains! '33.88 m!

in %&&8-&9.

Ta&,e 8*8 ( Statistics

Cement =mi,,ion


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tonnes Mission of SCLThe mission of !he organi a!ion is high igh!ed by !he fo o*ing.

To sus!ain i!s re(u!a!ion as !he mos! efficien! cemen! manufac!ure in !he*or d.

To s!reng!hen rea i a!ions !hrough in!e igen! brand bui ding.

To dri)e do*n cos! !hrough inno)a!i)e ( an! (rac!ices.

To increase !he a*areness of su(erior (roduc! 5ua i!y !hrough a rea is!ic

and con)incing communica!ions (rocess *i!h consumers.

9*? SCL man%fact%rin %nitsPresen! y Shree Cemen!s has !hree uni!s. T*o uni!s are a! Bea*er :incor(ora!ed

in '191 and'119; and !hird uni! is a! Ras :S!ar!ed in %&&3;. Four!h uni! a! Ras

has been s!ar!ed in March %&&9 and ano!her !*o uni!s a! Ras and ?hush/hera

near A *ar are a so s!ar!ed !o enhance !he ca(aci!y of !he com(any !o '& m!(a

from !he (resen! figure of 8 m!(a by !he year %&'&. The (ro+imi!y !o De hi0 ,ai(ur

and Earyana0 *hich are !he mos! ucra!i)e mar/e!s in !he region0 ma/es i! a

s!ra!egic oca!ion.

UNIT)8

Incor(ora!ed in '191.

Pu! u( in '123.

Cemen! Produc!ion :"+(ec!ed Produc!ion; L '.%& mi ion !onnes


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Figure %.% Per Annum Ca(aci!y "nhancemen! a! SC .

9* $%siness . Mana eria, Cha,,en es for SCLCemen! mar/e! for SC is high y com(e!i!i)e *i!h major com(e!i!ors ha)ing

ad)an!age of brand e5ui!y0 ca(aci!y and ear y mo)ers. The major com(e!i!ors are

Binani0 Bir a :*i!h (roduc!s i/e Bir a Su(er and Bir a Che!a/;0


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Ano!her issue is !ha! !he (roduc! :cemen!; canno! be differen!ia!ed c ear y on !he

basis of 5ua i!y and hence0 cos! ( ays one of !he mos! im(or!an! ro es in !his

indus!ry. If !he com(any can con!ro cos! of manufac!uring dis!ribu!ion0 !hen

on y *ou d (rofi!abi i!y of !he com(any increase.

ogis!ics is !he mos! im(or!an! cos! associa!ed *i!h cemen! indus!ry. This is !he

sing e mos! im(or!an! reason for s!rong dominance of a cemen! com(anies in

!he regions around !heir fac!ory. Bu! if !his sys!em can be im(ro)ed u(on0 and

cos!s can be managed0 !hen Shree Cemen!s !d. can s!reng!hen !heir ho d in

(resen! s!a!es of dis!ribu!ion as *e as oo/ for*ard !o gaining foo!ho d in ne*er

and far!her regions.

9*B Market of SCL"ach cemen! manufac!urer has a (rimary and secondary mar/e!. The former is

one0 *hich is !he c oses! !o !he (roduc!ion cen!re *here i! fe!ches !he bes!

rea i a!ions *hi e !he a!!er is usua y a! a dis!ance *here rea i a!ions are o*er.

Tab e %.% Mar/e! C assifica!ion for Shree Cemen!s !d.

SC *i!h a mar/e! share of '86 has !he second arges! mar/e! (resence in !he

nor!hern region0 ne+! on y !o !he


31/81

and some (ar!s of Punjab0 gi)ing i! a significan! edge in !rans(or! cos!s. The

o!her cemen! uni!s are oca!ed fur!her do*n0 a! dis!ances ranging from '3&- %&&

/i ome!res.

Shree Cemen!s is one of !he arges! cemen! com(anies in $or!h region ha)ing

e+is!ing ca(aci!y of 3.3mn !onnes of cemen! (er annum oca!ed in cen!ra

Rajas!han. The com(any (rimari y ca!ers !o Rajas!han0 Punjab0 Earyana0 De hi

and !!rancha in !he $or!hern region and !!ar Pradesh in Cen!ra region.

Rajas!han accoun!s for a((ro+ima!e y 7&6 of !he com(anyKs sa es *hi e De hi

and Earyana !oge!her accoun! for a((ro+ima!e y &6 of sa es.

9*D SCL-s $rands . Prod%ctsShree manufac!ures

H #rdinary Por! and Cemen! :#PC;

H Red #+ide Cemen! :R#C;

I!s ou!(u! is mar/e!ed under !he Shree !ra #rdinary Por! and Cemen!= and

Shree !ra RedO!ide Cement- brand names. The (roduc! !oday cons!i!u!es a mos! 796 of

SC =s sa es. nder i!s (remium (roduc!s ca!egory0 SC has aunched $an %r

Cement- Dec. %&&3 and a ne* brand

T%ff Cemento ;?? - has been in!roduced in !he mar/e! in A(ri %&&9. The

com(any (osi!ioned i!s brands around onger ife :durabi i!y;0 em(hasi ing

(roduc! onge)i!y.

9*F Stren ths of SCL8*< Lo# Cost Prod%cer( SC is one of !he o*es! cos! (roducers of cemen! in

India. The (rime reasons behind !his are ca(!i)e (o*er ( an!s0 use of (e! co/e in

bo!h ca(!i)e (o*er ( an! and /i n and (ro+imi!y !o !he mar/e!s.


32/81

9*< Limestone Reser0e( SC has a !o!a of 9&& mn !ones of imes!one reser)e

*hich *ou d be sufficien! !o mee! i!s re5uiremen!s for !he ne+! & years. Shree

Cemen!Ks !hird uni! is oca!ed a! !he (i!head of imes!one reser)e un i/e !he o!her

!*o uni!s in Bea*ar0 Rajas!han. ni! IJ0 *hich is e+(ec!ed !o be commissioned in

F &20 *ou d a so be oca!ed a! !he (i!head of com(anyKs imes!one reser)e. As

!he ne* ( an!s are oca!ed a! !he (i!head of imes!one reser)e0 !he ra* ma!eria

cos! (er !on of cemen! is e+(ec!ed !o go do*n as !he com(any *ou d be sa)ing

in cos! of !rans(or!a!ion.

;*< Capti0e Po#er P,ants( During F &30 !he com(any sourced 116 of (o*er

re5uiremen! from i!s ca(!i)e (o*er ( an!. The com(any has e+is!ing (o*er ( an!ca(aci!y of % M4. The com(any is ins!a ing addi!iona (o*er ( an! of '2 M4

ca(aci!ies0 *hich *ou d su(( y (o*er !o i!s ne* cemen! uni!s0 !hereby ensuring

con!inua!ion of se f sufficiency in !erms of (o*er re5uiremen!. Shree Cemen!Ks

(o*er usages (er !on of cemen! a! 93 ?*h is amongs! !he o*es! in !he indus!ry.

The com(any uses o* cos! (e! co/e in bo!h i!s (o*er ( an!s and /i n. Pe! co/e

is no! on y chea(er com(ared !o !he im(or!ed co/e bu! a so has high ca orific

)a ues !hereby reducing !he o)era cos!.

>*< Stron sa,es net#ork of 9D sa,es offices/ 89 dea,ers and >

retai,ers*

?*< Pro ressi0e Mana ement( Shree Cemen! su(( emen!ed i!s a!!rac!i)e y o*

ca(i!a in)es!men! (er !onne *i!h one of !he o*es! manufac!uring cos!s in !he

Indian cemen! indus!ry. The (a!h of sus!ainab e gro*!h has been made (ossib e

because of managemen! s!ra!egy of !a/ing !ri( e bo!!om- ine a((roach of

"conomic0 "n)ironmen!a and Socia (erformance is!ed be o*


33/81

Figure %.7 Progressi)e Managemen!

*< Minin ( imes!one being !he (redominan! ra* ma!eria 0 Shree Cemen! ( an!s

are si!ua!ed near imes!one 5uarry fie ds. To minimi e !he !rans(or!a!ion cos!0

Shree Cemen!s has eased !*o mines one a! Bea*er and o!her a! Ras *i!h

reser)es !ha! *i as! for a ong !ime. The Ras mines gi)e a imes!one of )ery

good 5ua i!y *hich is easier !o (rocess.


34/81

Figure %. SC Ca(!i)e Po*er


35/81

Com(any im(ar!s more !han %&0&&& hours of in-house !raining !o i!s

em( oyees e)ery year

Figure %.3 Man(o*er (rofi e a! SC

9*88 e' Operationa, 3i h,i hts The cos! of (roduc!ion of !he Com(any is one of !he o*es! in India

#(era!ing (rofi! margin is highes! in 4or d Cemen! Indus!ry

'&&6 se f sufficiency in mee!ing (o*er re5uiremen!

'&&6 se f de(enden! on imes!one sourcing

Consis!en! di)idend (aying com(any :%&&3-&8 3&6;

Recogni ed as one of !he mos! "nergy "fficien! uni!s in India Fas!es! gro*ing cemen! com(any in India :ca(aci!y more !han !reb ing in 7

years from %8 TPA in %&& -&3 !o 13 TPA in %&&2-&1;

S!rong brand image L Bangur Cemen!0 Shree !ra Red #+ide Cemen!

and Shree !ra #rdinary Por! and Cemen! ha)e high consumer reca .


36/81

$e* su(er (remium brand Tuff Cemen!o (roduced *i!h


37/81

'. The (ur(ose of !he Cemen! Sus!ainabi i!y Ini!ia!i)e is !o%. "+( ore *ha! sus!ainab e de)e o(men! means for !he (ar!ici(a!ing

com(anies and !he cemen! indus!ry.7. Iden!ify and faci i!a!e ac!ions !ha! com(anies can !a/e as a grou( and

indi)idua y !o acce era!e !he mo)e !o*ards sus!ainab e de)e o(men!.. Pro)ide a frame*or/ !hrough *hich o!her cemen! com(anies can(ar!ici(a!e0 and

3. Pro)ide a frame*or/ for engaging e+!erna s!a/eho ders.

A enda/ CSI

The '& com(anies in)o )ed in !he CSI ha)e chosen !o de)e o( an agenda for!hree reasonsTo (re(are for a sus!ainab e fu!ure by ma/ing a more efficien! use of na!ura

resources and energy0 and engaging *i!h oc/ issues increase emerging mar/e!To mee! !he e+(ec!a!ions of s!a/eho ders and main!ain !heir icense !o o(era!e=increase communi!ies across !he *or d !hrough a grea!er !rans(arency ofo(era!ions effec!i)e engagemen! *i!h socie!y and ini!ia!ing ac!ion0 *hich ead !osus!ained (osi!i)e changes0 and

To indi)idua y unders!and and bui d ne* mar/e! o((or!uni!ies !hrough (rocessinno)a!ion0 *hich achie)e grea!er resource energy efficiency and ong L !ermcoos sa)ingsG (roduc! and ser)ice inno)a!ion !o reduce en)ironmen! im(ac!s and*or/ *i!h o!her indus!ries on no)e uses of L (roduc! and *as!e ma!eria in

cemen! (roduc!ion.The com(anies ha)e iden!ified si+ /ey areas *here !hey be ie)e !ha! !he CSI canma/e a significan! con!ribu!ion !o*ards a more sus!ainab e socie!y

C ima!e (ro!ec!ion.

Fue s and ra* ma!eria s.

"m( oyee hea !h and safe!y *

"missions reduc!ion.

oca im(ac!s.

In!erna business (rocesses.


38/81

Prod%cti0it'

Shree Cement s%pp,emented its attracti0e,' ,o# capita, in0estment pertonne #ith one of the ,o#est man%fact%rin costs in the Indian cementind%str'*

Time y e+ecu!ion of ni!-III a ong *i!h be!!er (rice rea i a!ion and cos!o(!imi a!ion measures made !he year a ha mar/ for !he Com(any -

The !urno)er of !he Com(any has more !han doub ed during !he year. The o(era!ing (rofi! margin of !he Com(any a! .2 6 is highes! in !he

Indian cemen! indus!ry. The (ro(or!ion of b ended cemen! in !he !o!a (roduc!ion has increased !o

986 in !he curren! year agains! 3 6 in !he (re)ious year. Com(anys!ar!ed use of *e! f y ash for (roducing b ended cemen! *hich iseconomica and en)ironmen! friend y.

The ca(aci!y u!i i a!ion e)e of !he Com(any fur!her im(ro)ed during !heyear from '' 6 !o ''86 *i!h ni!-III recording 116 in i!s )ery firs! fuyear of o(era!ion. This com(ares *e *i!h !he a India a)erage of 1 6.

Con!inued !hrus! on im(ro)ing energy consum(!ion e)e s has brough!do*n (o*er and fue consum(!ion as under


39/81

A !hough Po*er consum(!ion for !he year indica!es margina increase during !heyear0 !he uni!-*ise consum(!ion has gone do*n from as! year. The

Reduc!ion in energy consum(!ion *i!h increasing (roduc!ion base hassignifican! y con!ribu!ed !o cos! efficiency of !he Com(any.

Dynamic and efficien! ogis!ic managemen! (rac!ices ha)e enab edCom(any !o con!ain increase in freigh! cos! in s(i!e of rising diese (ricesand oading res!ric!ions on !ruc/s. Com(any has made o(!ima use of i!sin-house rai *ay sidings faci i!y *i!h a((ro(ria!e rou!e ( an !o imi! freigh!cos!.

The Com(anyKs mar/e!ing s!ra!egy of main!aining mu !i( e brands com(e!ing*i!h each o!her *i!h a )ie* !o garner increased mar/e! share has yie d goodre!urns. As a resu !0

Com(any has re!ained mar/e! eadershi( s!a!us in Rajas!han and De hi.


40/81

1%n Rodhak O brand has fur!her s!reng!hened i!s (resence in i!ssegmen! in !he $or!h India mar/e!.

$an %r Cement O aunched as! year in !he (remium 5ua i!y segmen!0has been *e recei)ed in !he mar/e! and has been im(ro)ing i!s mar/e!share. I!s mar/e!ing s!ra!egy of a((oin!men! of Business associa!es andBusiness (ar!ners has enab ed !he Com(any !o /ee( i!s deb!ors e)e s a!

ero and minimi ing !he 4or/ing Ca(i!a re5uiremen!.

Com(any has in!roduced ano!her (remium 5ua i!y brand T%ff Cemento;?? O. The ne* brand has s!ar!ed a!!rac!ing cus!omer=s a!!en!ion and isge!!ing good res(onse.

The (ro(or!ion of !rade sa e !o !o!a sa e increased during !he year from886 !o 9 6 sho*ing higher cus!omer reca and sa!isfac!ion.

The Com(any con!inued *i!h i!s highes! credi! ra!ing of PR8J forits short)term de&t and AA for its ,on )term de&t enab ing con!ainmen!of i!s cos! of funds des(i!e arge borro*ing re5uiremen!s for i!s ca(i!ae+(endi!ure (rogramme

The in!eres! cos! has been /e(! a! a o* e)e in !he rising in!eres! ra!een)ironmen! !hrough o(!ima u!i i a!ion of funds and judicious mi+ of ru(eeand fu y hedged foreign currency borro*ings.

Time y e+ecu!ion of (rojec!s is a ha mar/ of !he Com(any. The '.3 MTPAca(aci!y e+(ansion *i!h ca(!i)e (o*er ( an! of '2 + 7 M4 com( e!ed inFeb &2 has been achie)ed *e *i!hin !he !arge!s bo!h !ime and budge!.

During !he year Com(any has under!a/en im( emen!a!ion of an"n!er(rise Resource P anningO :"RP; Projec! *i!h #rac e "-Business

Sui!e !o manage i!s e+(anding business o(era!ions. "RP Projec! shahe ( i! in im(ro)ing i!s business ma!rices by (rocess o(!imi a!ion0im(ro)ing ogis!ics and in!egra!ion across disci( ines. The (rojec! ise+(ec!ed !o be o(era!iona in F %&&2-&1.


41/81

Tab e %.7 SC ?ey Figures

9*89 Reco nition and A#ardsH 4hi!eho( eman ? - In!erna!iona Cemen! Consu !an!s ha)e consis!en! y

main!ained s!ar ra!ing for Shree since %&&& :$o one in !he *or d has beenassigned a 3 s!ar ra!ingQQ;

H "+ce ence in "nergy Managemen! A*ard %&&8 from Confedera!ion of Indian

Indus!ry for !he second !ime

H $a!iona A*ards for "nergy Conser)a!ion and Bes! Therma and " ec!rica

"nergy from

Minis!ry of Po*er0


42/81


43/81

Tab e %.3 SC =s Jariab e Cos! Com(arison *i!h o!hers

SC =s abi i!y !o (roduce cemen! *i!h o*es! (o*er consum(!ion and o!her o*

cos!s of (roduc!ion and ra* ma!eria (rocuremen! has resu !ed in!o !he !o(

"BITDA Margin figures for SC amongs! a i!s com(e!i!ors.


44/81

Figure %.8 Po*er Cos! Com(arison

Figure %.9 "BITDA Margin Com(arison


45/81

9*8> Information Techno,o ' at SCL

SC has embraced Informa!ion Techno ogy in a big manner and made

in)es!men!s !o es!ab ish s!rong IT infras!ruc!ure

IT Po,ic' . %a,it' Standards( SC has c ear y defined IT (o icy. Bac/u( and

Disas!er

Reco)ery Po icy0 SC In!erne! $e!*or/ Access Po icy and Business Con!inui!y

P ans ha)e been endorsed and re igious y im( emen!ed.

SUMriddhi- ) Shree "n!er(rise Resource P anning The Shree "RP

(rogramme0 chris!ened S Mriddhi=0 *as de)e o(ed de( oying #rac e 1i RDBMS

and De)e o(er %&&& ( a!form. A com(rehensi)e "RP (rogram *as designed !o

in!egra!e a func!iona modu es0 name y Financia Accoun!ing Cos!ing :FA;0

Ma!eria Managemen! :MM;0 Personne and Payro :PP;0 abora!ory and @ua i!y

Con!ro 0 In!egra!ed Managemen! Sys!em :IMS; and Ra* Ma!eria Procuremen!

:RMP; *i!h !he objec!i)e !o ma/e o(era!ions on ine. The com(any e+(ec!s !oim( emen! "RP i)e= across !he organisa!ion in %&& -&3.

On,ine operations of Sa,es and 4istri&%tion( Com(any successfu y

im( emen!ed !he com(u!eri a!ion of i!s sa es and dis!ribu!ion func!ions by

in!egra!ing a branches dea ers !hrough a secured connec!i)i!y *i!h !he ( an! for

on ine order (rocessing. In !he second (hase0 necessary enhancemen!s *i

ma/e !he sys!em *or/ in a cen!ra i ed manner using dedica!ed and secure

Jir!ua Pri)a!e $e!*or/ :JP$; across i!s branch dea er ne!*or/.

SCL-s IT Infrastr%ct%re The Com(any has a sca ab e0 s!a!e-of-!he-ar! IT

ne!*or/ infras!ruc!ure0 *i!h o(!ic fibre cab e-based gigabi! bac/bone0 high-end

ayer 7 s*i!ches0 Cisco rou!ers and IBM cor(ora!e-com(u!ing ser)ers. Shree has

a secure ne!*or/ across i!s cor(ora!e and si!e oca!ions *i!h e-!rus! fire*a


46/81

su(( emen!ed *i!h in!rusion de!ec!ion sys!em and Ac!i)e Jirus Defense So u!ion

from $e!*or/ Associa!es. The organisa!ion is (ro)ided *i!h !he a!es! com(u!ing

!oo s in hard*are and sof!*are.

SCL-s corporate #e&site( The Com(any aunched i!s con!en!-e+haus!i)e

cor(ora!e *ebsi!e shreecemen!.com on ' Augus! %&&7. The (or!a is dynamic0

informa!i)e and user-friend y *i!h a menu-dri)en in!erface. The *ebsi!e con!ains

!he a!es! informa!ion abou! !he com(any *i!h ne*s f ashes and a (ho!o ga ery.

The *ebsi!e is e-commerce enab ed0 *hich (ro)ides access !o cus!omers on

!heir a!es! accoun! s!a!emen! and )endors su(( iers on order (osi!ions for !he e-

(rocuremen! (rogram.

E)Proc%rement( Shree im( emen!ed an e-(rocuremen! (rogramme !o faci i!a!e

(urchases !hrough !he re)erse auc!ion (rocess !o ma+imi e (rice benefi!s and

!rans(arency.

Paper,ess office( Shree is mo)ing !o*ards !he u !ima!e goa of achie)ing a

(a(er ess office en)ironmen! !hrough a *ides(read use of e-mai s and ins!an!

messaging for dai y communica!ion across a i!s offices. A (rogram *asunder!a/en for s!oring and ca!a oguing !he huge archi)e of b ue(rin!s of !echnica

dra*ings in a digi!ised form for ins!an! accessibi i!y.

Ra# materia, proc%rement( The en!ire ra* ma!eria (rocuremen! o(era!ion

*as in!egra!ed *i!h S Mriddhi= - Shree "RP0 !o increase efficiency and con!ro .

Trainin ( Shree is commi!!ed !o enhance !he IT s/i s of no! on y em( oyees

across a func!ions bu! !heir fami y members as *e . As a resu !0 !raining is an

ongoing (rocess and more !han %&& (ersonne *ere im(ar!ed !raining across

de(ar!men!s.


47/81


48/81

of !he mos! modern and so(his!ica!ed ( an!s in !he India e5ui((ed *i!h s!a!e-of-

!he-ar!


49/81

9*8 COMPARISON O2 POTENTIALIT7O2 6ARIOUS CEMENT $RAN4S

COMPARISON O2 POTENTIALIT7 O2 6ARIOUS CEMENT $RAN4S INRA1AST3AN

$RAN4 NAME SALES =IN MATRIC TONES 7o% are a%thori@ed dea,er of:A; Ambuja :B; !ra-!ech:C; Binani :D; Bangur

:"; Shree !ra :F; Tuff Cemen!o:


71/81

4EALERS SU$4EALERS REPORT

SNO*

NAME O2 2IRM +IT3A44RESS

NAME O2O+NER

4EALER SU$4EALE

R

SALE =P M< $RAN4

8 MAI3TA $UIL4INGMATERIAL . SUPPLAIR

=SEIRSEI R#AD;

MA3ES3 1I S BD"A "R 9 $AGE TU22CEMENTO ,? A MI

9 RA ES3 $UIL4INGMATERIAL . SUPPLAIR:M""$A 4A A SEIRSEI

R#AD;

RA ES3 1I D"A "R ; $AGE BIR ATTAM

; 1ANU SALESCORPORATION :M""$A

4A A SEIRSEI R#AD;

1A4GIS3 1I D"A "R ; $AGE ,? A MI

> C3AN4N $UL4INGMATERIAL . SUPPLAIR:M""$A 4A A SEIRSEI

R#AD;

G7ARAS3ILAL S3ARMA

S BD"A "R D $AGE TRA-T"CE

AMB ,A

? S3ARMA $UIL4INGMATERIAL :M""$A 4A A

SEIRSEI R#AD;

RA ES3 1I S BD"A "R F $AGE TRA-T"CE

$AG4A $UIL4ING

MATERIAL :PACEA4A ASEIRSEI R#AD;

PAR$3U 1I

$AG4A

S BD"A "R 8 $AGE TRA-

T"CE

B GA7ATRI $UIL4AINGMATERIAL . SUPPLAIR:PACEA4A A SEIRSEI

R#AD;

7OGES3 1IGUPTA

S BD"A "R 9 $AGE $ANGUR AMB ,A

BI$A$I

D $ALA1I SALESCORPORATION

:PACEA4A A SEIRSEIR#AD;

PRALA4 1IS3ARAMA

S BD"A "R 8 $AGE BIR ATTAM

TRA-T"CES3REE

ULTRAF $AG4A $UIL4ING

MATERIAL :PACEA4A ASEIRSEI R#AD;

RAMGOPAL 1I$AG4A

S BD"A "R 9 $AGE TRA-T"CE

$ANGURBI$A$I


72/81

8 ATARE7A $UIL4INGMATERIAL :PACEA4A A

SEIRSEI R#AD;

RAM ARAN1I ATARE7A

S BD"A "R F $AGE TRA-T"CE

88 3AN4EL+AL TRA4ERS:$I4AR R#AD %&& B

PASS;

S37AM3AN4LA+A

L

D"A "R ; $AGE AMB ,A

89 ANIL TRA4ERS : A MI$A PU1A $UIL4INGMATERIAL :$I4AR R#AD

$"TA ,I ?I CE?A?I;

PAPU 1I S BD"A "R ; $AGE ,? A MI AMB ,A

8? AGRA+AL TRA4ERS :A %8E""RA BADI $I4AR

R#AD ,E#T4ARA;

IS3ANUMAR

S3ARMA

S BD"A "R 9? $AGE TRA-T"CE

8 RA143ANI $UIL4INGMATERIAL :S DAMA

MAR< BERAMP RI R#AD;

S37AM LALS3ENI

S BD"A "R B $AGE AMB ,A

8B LA5MI CEMENT AGENC7:S DAMA MAR S3I6 TRA4ERS :SI?ARR#AD ?EATEA$

E#SP"TA ;

RA ES3 1I D"A "R 9? $AGE ,.?. A MI

>8 RA1EN4ER TRA4ERS

:SI?AR R#AD;

RA1EN4ER 1I D"A "R ; $AGE TRA-

T"CE

>9 PAR4EEP TRA4ERS:SI?AR R#AD;

1UGALIS3OR

S BD"A "R 8? $AGE AMB ,A TRA-

T"CE

>; SA 3A+AT $UIL4INGMATERIAL :'%7 BA$D

$A $AGE TRA-T"CE

>> NIRANI7A TRA4ERS

:M R IP RA;

AS3O

NIRANI7A

S BD"A "R 9 $AGE TRA-

T"CE ,.?. A MI AMB ,A

>? NA6EEN TRA4INGCOMPAN7 :M R IP RA;

RA1 UMAR S BD"A "R 8B $AGE TRA-T"CE

,.?. A MI AMB ,A


75/81


76/81

?D 1AG4AM$A TRA4INGCOMPAN7 :S BI?ISEA

M#BI " ST#R" ?A 4ARR#AD;

MO3AN LAL D"A "R 9 $AGE TRA-T"CE

?F UMA+AT TRA4ING

COMPAN7 :?A 4AR R#AD?ATA PEA$?A;

S*N* UMA+A

T

D"A "R 9 $AGE TRA-

T"CE

6ESA6E ARMASTONSUPPLAIRS :


77/81

@ua i!y and Brand image of !he cemen! brands are ha)ing a significan!

re a!ionshi( *i!h one ano!her. This is an im(or!an! fac!or because good

5ua i!y he (s in bui ding !he oya cus!omers due !o *hich demand of !ha!brand increases and dea ers ha)e !o go *i!h !he brand *hose demand is

more.

There is no significan! re a!ionshi( be!*een !he (rofi! margin and sa es. As

re(u!ed brands are gi)ing high sa es e)en !hey are (ro)iding fe*er (rofi!

margins. In o!her !erms0 in Jo ume based mar/e! dea ers go *i!h !he

brand *hich has high demand.

They say !ha! if !he sa es are high !hen au!oma!ica y *e *i be ab e !o

ma/e a (rofi! ou! of i! and are ab e !o earn !he mone!ary benefi!s *hich

com(anies gi)es on achie)ing !he !arge! sa es.

RECOMMEN4ATION


78/81

To bui d !he s!rong brand image0 SCL has !o ado(! aggressi)e mar/e!ing

s!ra!egies. ou shou d ha)e a (ro(er con!ro on a !he fac!ors of

mar/e!ing mi+. ")en a sing e fac!or missed ou! *i gi)e your com(e!i!orsan edge u(on you.

Some of !he recommenda!ions I *an! !o gi)e !o im(ro)e !he (resen!

(osi!ioning of !he brand

Firs! of a 0SCL has !o sho* i!s (resence in !he mar/e! no! in !he !erms of

dea ers bu! shou d a so reach !o !he cus!omers )ia differen! means.

Mason mee!s and Dea er mee!s shou d be organi ed in e)ery si+ mon!hs

:s!ress shou d be aid in rura areas0 *here brand )isibi i!y is )ery o*;.

A ong *i!h mason and dea er mee!s0 com(any can a so go for cus!omer

mee!s0 !e ing abou! !he 5ua i!y of !he (roduc! and e+( aining !hem *hy

!hey shou d choose SCL-S $rands . Ad)er!isemen! is ano!her medium !o

reach !o !he cus!omersG effec!i)e medium shou d be ado(!ed for !he same.

Com(any can ado(! !he s!ra!egy of ma/ing e+c usi)e dea ers0 by (ro)iding

!hem e+!ra benefi!s. This *i he ( !hem !o reduce com(e!i!ion. As in !he

case of mu !i brand dea ers0 dea er !end !o sa e on y !hose brand *hich

gi)es high (rofi! margin.

There shou d be con!ro on !he (rice )aria!ion. Due !o !his0 image of being

a (remium brand is di u!ed and *e no onger are considered as (remium

brand.

#ne of !he main reasons of (rice )aria!ion is !he secondary freigh! benefi!

being (ro)ided !o !he dea ers. Com(anies carry !he Tro,,a Mo0ement" !o

gi)e benefi! !o !heir dea ers. A so0 o!her !*o brands of Shree Cemen!


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imi!ed gi)e !he same benefi!. Therefore0 Bangur has a so s!ar!ed gi)ing

!he same benefi! !o coun!er !he com(e!i!ors mo)e.

I! is good !o gi)e more benefi!s !o !he dea ers bu! i! shou d be seen e5ua y

from bo!h sides. Com(any carries !he Tro,,a Mo0ement" !o gi)e benefi!

!o !he dea ers0 bu! dea er do no! oo/ i! in !his *ay. They !hin/ !hey are

ge!!ing more (rofi! margin0 due !o *hich if !hey are ge!!ing sec. freigh!

benefi! as Rs 7 !o Rs !hen !hey use i! !o reduce !he (rice and se !he

brand in esser (rice and gaining Rs ' or Rs % ou! of i!. Their main aim is

!o achie)e high sa es and ge! annua benefi!.

I s!rong y su((or! !his !y(e of benefi!s shou d no! be !here *hich ad)erse y

affec!s !he brand image. Ins!ead *e can gi)e o!her benefi!s !o !he dea ers

may be in form of Go,d schemes or more margin in achie)ing !arge!

sa es.

Ano!her !hrea! is from in-house com(e!i!ion. Com(any managemen!

shou d !a/e ade5ua!e s!e(s !o reduce !his com(e!i!ion and shou d aim !o

bui d !he brand image0 ra!her !han !o ha)e high co ec!i)e sa es.

?*; $I$LIOGRAP37


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Fo o*ing are sources0 *hich he (ed me during my summer !raining

$OO S(

OT3ARI C*R . Research methodology management, 3 rd "di!ion

OTLER P3ILIP Marketing management '% !h edi!ion0 %&&9

S*P*GUPTA - Statistical Methods Thir!een Re)ised "di!ion0 %&&'

MAGQINES(

I$DIA T#DA

B SI$"SS 4#R D

RE2ERENCES

+E$LIOGRAP37

***.shreecemen! !d.com ***.ibef.org ***.mar/e!research.com ***.indianinfo ine.com ***.busineessconnec!.com ***.indiancemen!indus!ry.com
http://www.shreecementltd.com/http://www.ibef.org/http://www.marketresearch.com/http://www.indianinfoline.com/http://www.busineessconnect.com/http://www.indiancementindustry.com/http://www.shreecementltd.com/http://www.ibef.org/http://www.marketresearch.com/http://www.indianinfoline.com/http://www.busineessconnect.com/http://www.indiancementindustry.com/


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65290933 shree cement mar report (1)

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