A PROJECT REPORT

On

CUSTOMER SATISFACTION AND MARKET POTENTIAL

OF

AMBUJA CEMENTS

PREPARED BY:

SUDHIR CHAUHANNEW DELHI

CONTENTS

Chapter-1a) Introduction about the cement industry

Chapter-2

Introduction to the organization Background of problem task

Rationale Scope of the project

Chapter-3 Objective of the study

Main objective Specific objective

Chapter-4 Methodology

Data collection method Research methodology

Swot analysis Pest analyasis Chapter-5 Data analysis Chapter-6 Limitations of the study Chapter-7 Findings Chapter-8 Recommendations Chapter-9 Bibliography Chapter-10 Sample questionnaires

OVERVIEW OF THE CEMENT INDUSTRY

The Indian Cement industry is the second largest cement producer in the world,

with an installed capacity of 144 million tonnes. The industry has undergone

rapid technological upgradation and vibrant growth during the last two decades,

and some of the plants can be compared in every respect with the best operating

plants in the world. The industry is highly energy intensive and the energy bill in

some of the plants is as high as 60% of cement manufacturing cost. Although the

newer plants are equipped with the latest state-of-the-art equipment, there exists

substantial scope for reduction in energy consumption in many of the older plants

adopting various energy conservation measures.

The Indian cement industry is a mixture of mini and large capacity cement plants,

ranging in unit capacity per kiln as low as 10 tpd to as high as 7500 tpd. Majority

of the production of cement in the country (94% ) is by large plants, which are

defined as plants having capacity of more than 600 tpd. At present there are 124

large rotary kiln plants in the country. The Ordinary Portland Cement (OPC)

enjoys the major share (56%) of the total cement production in India followed by

Portland Pozzolana Cement (PPC) and Portland Slag Cement (PSC). A positive

trend towards the increased use of blended cement can be seen with the share

of blended cement increasing to 43%. There is regional imbalance in cement

production in India due to the limitations posed by raw material and fuel sources.

Most of the cements plants in India are located in proximity to the raw material

sources, exploiting the natural resources to the full extent. The southern region is

the most cement rich region while other regions have almost same

cement production capacity. The Indian cement industry is about 90 years old

and its main sources of energy are thermal and electrical energy. The thermal

energy is generally obtained from coal, and the electrical energy is obtained

either from grid or captive power plants of the individual manufacturing units.

2. Salient features of Indian cement industry

Indian cement industry is the second largest in the world with an installed

capacity of 135 MTPA. It accounts for nearly 6% of the world production.

· There are 124 large plants and around 365 mini plants. The industry presents a

mixed picture with many new plants that employ state-of-the-art dry process

technology and a few old wet process plants having wet process kilns.

· Production from large plants (with capacity above 1 MTPA) account for 85% of

the total production.

· The cement industry has achieved significant progress in terms of reducing the

overall energy intensity. Dry process plants that the weighted average thermal

energy consumption was 734 kCal/kg clinker, and weighted average electrical

energy consumption was 89 kWh/tonne of cement. The best energy consumption

are 692 kCal/kg. clinker and 66 kWh/ton of cement.

3. Quantitative details:

The energy intensity of the all the dry process plants (cost of energy as

percentage of total production cost of packed cement) varies from 29 to 61%.

This is observed to vary with the vintage of the plant, the technology employed

by the plants and the type of cement produced.

Specific thermal and electrical energy consumption for the plants ranges

between 692 – 879 kCal/kg. of clinker and 66 – 127 kWh/ton of cement produced

(product mix) respectively. The specific electrical energy also includes the energy

consumed in packing, plant utilities and plant lighting. The reasons for wide

range in specific energy consumption can be mainly attributed to the differing

equipment configuration employed in different sections of the plants .

Total production

The cement industry comprises of 125 large cement plants with an installed

capacity of 148.28 million tonnes and more than 300 mini cement plants with an

estimated capacity of 11.10 million tonnes perannum.

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. The total installed capacity in the country as a whole is 159.38

million tonnes. Actual cement production in 2002-03 was 116.35 million tonnes

as against a production of 106.90 million tonnes in 2001-02, registering a growth

rate of 8.84%. Major players in cement production are Ambuja cement,

Aditya Cement, J K Cement and L & T cement.

Apart from meeting the entire domestic demand, the industry is also exporting

cement and clinker. The export of cement during 2001-02 and 2003-04 was 5.14

million tonnes and 6.92 million tonnes respectively. Export during April-May,

2003 was 1.35 million tonnes. Major exporters were Gujarat Ambuja Cements

Ltd. and L&T Ltd.

The Planning Commission for the formulation of X Five Year Plan constituted a

'Working Group on Cement Industry' for the development of cement industry. The

Working Group has identified following thrust areas for improving demand for

cement;

i. Further push to housing development programmes;

ii. Promotion of concrete Highways and roads; and

iii. Use of ready-mix concrete in large infrastructure projects.

Further, in order to improve global competitiveness of the Indian Cement

Industry, the Department of Industrial Policy & Promotion commissioned a study

on the global competitiveness of the Indian Industry through an organization of

international repute, viz.

Table given here is representing the cement industry growth through five year plans……

Five years plan Years Capacity (mt) Production (mt)

Pre plan2nd plan3rd plan4rth plan5th plan6th plan7th plan8th plan9th plan

10th pl

1950-511951-561956-611961-661969-741974-791980-851985-901992-971997-02

3.285.029.30

12.0019.7622.5842.4061.31105.26146.13

2.204.607.97

10.9714.6619.4230.1345.4176.22108.40

Cement industry has been decontrolled from price and distribution on 1st

March 1989 and de-licensed on 25th July 1991. However, the performance of the

industry and prices of cement are monitored regularly. Being a key infrastructure

industry, the constraints faced by the industry are reviewed in the Infrastructure

Coordination Committee meetings held in the Cabinet Secretariat under the

Chairmanship of Secretary (Coordination). The Committee on Infrastructure also

reviews its performance.

Technological change

Continuous technological upgrading and assimilation of latest technology has

been going on in the cement industry. Presently 93 per cent of the total capacity

in the industry is based on modern and environment-friendly dry process

technology and only 7 per cent of the capacity is based on old wet and semi-dry

process technology. There is tremendous scope for waste heat recovery in

cement plants and thereby reduction in emission level. One project for co-

generation of power utilizing waste heat in an Indian cement plant is being

implemented with Japanese assistance under Green Aid Plan. The induction of

advanced technology has helped the industry immensely to conserve energy and

fuel and to save materials substantially. India is also producing different varieties

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. Production of these varieties of cement conform to the BIS Specifications.

Also, some cement plants have set up dedicated jetties for promoting bulk

transportation and export.

State- wise major cement plants

state No.of plants Capacity mt

Andhra pradeshAssamBihar

ChhatisgarhDelhiGujrat

HaryanaHimachal pradesh

J and kJharkhandKarnatka

KeralaMadhya pradesh

MaharashtraMeghyalaya

OrrisaPunjab

RajasthanTamil nadu

Uttar pradeshWest Bengal

24119112141591128133141374

23.960.201.00

10.360.50

17.120.174.060.204.57

10.070.42

16.3910.950.202.762.84

17.9514.795.073.13

Total 134 146.71

Current status of Indian cement industry

The Indian cement industry has grown remarkably in the last two decades to

emerge as the second largest in the world after china. In terms of technology ,

quality and productivity, India cement industry is remarkably is undeniably at the

top. Today, the country has 134 major plants with an installed capacity of 146.71

million tones. There are also 60 surviving mini and tiny units with a capacity of

6.3 million tones . The combined capacity of the cement industry is 153.01

million tones . in recent years , the production of blended cement has increased

in India as more and more companies shifting their emphasis from opc to

blended cement.

With increased cement production, the cement supplies have increased

substantially resulting into depressed prices, with producers are getting

inadequate returns on their investment, affecting the bottom lines of several

companies.

Today, the Indian cement industry is passing through are alignment and

consolidation . Multi nationals have a strong entry in the cement market and are

trying to get their presence by acquisitions and mergers.

The per capita consumption of cement in India, which currently is very low

at 99 kg, has huge scope of growth . according to industry sources with the

intiative taken by the government on the infrastructure , particularly the north

and south corridor particularly known as “ golden qualidateral”… the

working group on the cement industry constituted by the planning commission

Introduction of Jk cement limited

J.K. Cement is an affiliate of the J.K. Organization, which was founded by Lala

Kamlapat Singhania. The J.K. Organization is an association of industrial and

commercial companies and has operations in a broad number of industries.

Our cement operations commenced commercial production in May 1975 at our

first plant at Nimbahera in the state of Rajasthan. At Nimbahera, we started with

a single kiln with a production capacity of 0.3 million tons. We added a second

kiln in 1979 with production capacity of 0.42 million tons, and a third kiln in 1982

with a production capacity of 0.42 million tons. We added a precalciner with a

capacity of 0.4 million tons in 1988, which increased our capacity at Nimbahera

to 1.54 million tons. During the years 1998 through 2003, we continued to

implement modifications to each of our kilns, which increased our aggregate

capacity at Nimbahera to 2.8 million tons as of September 30, 2005.

We commissioned a second grey cement plant at our Mangrol plant in 2001, with

a production capacity of 0.75 million tons. As of September 30, 2005, we had an

aggregate production capacity of 3.55 million tons per annum of grey cement.

Our white cement plant was completed in 1984 with a capacity of 50,000 tons.

Our continuing modifications to the plant have increased its production capacity

to 300,000 tons as of September 30, 2005.

Today, J. K. Cement Ltd. is one of the largest cement manufacturers in Northern

India. We are also the second largest white cement manufacturer in India by

production capacity. While the grey cement is primarily sold in the northern India

market, the white cement enjoys demand in the export market including countries

like South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri Lanka, Kenya,

Tanzania, UAE and Nepal.

Our access to high quality limestone reserves that are suitable for production of

white cement provides us with a competitive advantage. Based on geological

surveys conducted by independent agencies on our mines between 1996 and

2001, our limestone reserves for both grey and white cement are expected to

meet our existing and planned limestone requirements of 4.0 MnTPA of grey

cement and 0.4 MnTPA of white cement, for approximately 40 years.

Backed by state-of-the-art technology and highly skilled manpower against the

backdrop of India’s infrastructural growth in an overdrive, we are upbeat about

the future. We are confident of contributing heavily in India’s journey of

development. We see a world of concrete ideas on the horizon.

Types of product of JK cement

Grey cement produced by us consists of OPC and PPC. There are also other

cements in the market that we do not produce, such as Portland slag cement, oil

well cement, sulphate resistant cement, rapid gardening cement, low alkali

cement, low heat cement and super finish cement.OPC has three grades that we

produce, that are differentiated by their compressive strengths, expressed in

mega pascals (“MPa”), as specified by the BIS.These grades are 53-grade OPC,

43-grade OPC and 33-grade OPC, with 53-grade OPC having the highest

compressive strength.The customer selects the grade of OPC based on the

intended application. Our most popular cement, by sales volume, is 43-grade

cement, with 53-grade cement being used in applications which require high

strength characteristics.

Ordinary Portland Cement

OPC is produced by inter-grinding cement clinker prepared in a rotary cement

kiln with gypsum. Each metric ton of OPC requires approximately 0.95 metric

tons of clinker and approximately 0.05 metric tons of gypsum. The range of

applications, the physical and chemical requirements specified by BIS and

strength of the three grades of OPC are discussed below:

53-grade OPC (IS:12269-1987): 53-grade OPC is a high strength cement.

According to the BIS requirements, 53-grade OPC must have a 28-day

compressive strength of no less than 53 MPa. For certain specialized products,

such as pre-stressed concrete and certain pre-cast concrete items requiring high

strength, 53-grade OPC is considered useful as it can produce high-grade

concrete at lower cement content levels. We produce 53-grade OPC by exposing

the clinker to the grinding process for longer period of time,whichresults in a

higher density and stronger cement. As the grinding process requires a

significant amount of power, finer grinding for the 53-grade OPC requires more

power and is therefore priced higher compared to lower grades of OPC.53-grade

OPC can be used for the following applications:

Portland Pozzolana Cement

We also manufacture PPC (IS:1489 (Part-1) – 1991) under the brand name J.K.

Super. PPC is also known as blended cement or silicate cement, and this

blended cement has become increasingly popular in the market in recent years.

Each ton of PPC requires approximately 0.75 tons of clinker, 0.05 tons of

gypsum and 0.20 tons of fly ash, a pozzolanic material that is a by-product of

thermal power plants. In the manufacture of PPC, a portion of the clinker is

replaced with fly ash. This enables the cement manufacturer to produce a higher

quantity of cement per ton of clinker. As a result, the cement manufacturer can

increase its production capacity by making a limited investment in grinding

capacity without a corresponding investment in earlier.stage production

equipment such as kilns.Further, the only cost incurred for fly ash is

transportation cost from the thermal power plants that generate it to the cement

manufacturing site, as fly ash is currently available free of cost. The use of fly ash

therefore significantly reduces the overall cost of production of cement.

The advantage of PPC is its low heat of hydration and corresponding resistance

to exposure to various environmental chemicals such as salt water. It is

particularly suitable for marine and hydraulic construction and other mass

concrete structures. This cement has durability that is equivalent to OPC and can

be used most of the applications where OPC is used. As PPC is generally sold at

a comparable price to OPC and the cost of production of PPC is comparatively

lower, PPC’s margins per ton are generally higher compared to OPC.

White cements

We manufacture white cement under the brand names J.K. White and Camel.

White cement is produced using a different quality of limestone and is

distinguished from grey cement by its white colour. Each ton of white cement

requires approximately 1.33 tons of limestone, 0.02 tons of gypsum and 0.2 tons

of additives including white clay, feldspar

and fluorspar.

White cement is typically used in three principal areas of application, as set forth

below:

• Flooring, for the manufacturing and laying of mosaic tiles and as tile fixing grout,

wall applications, such as decorative white cement paints and plain and spray

plasters; and

White cement is typically used in three principal areas of application, as set forth

below:

• Flooring, for the manufacturing and laying of mosaic tiles and as tile fixing grout,

wall applications, such as decorative white cement paints and plain and spray

plasters; and

Other specialized applications including glass fibre reinforced concrete, garden

furniture, lamp posts, as pointing for brick and stone works and as pre-cast

cladding panels.

We sell white cement primarily in the Indian market. We also export white cement

to a number of countries, including South Africa, Nigeria, Singapore, Bahrain,

Bangladesh, Sri Lanka, Kenya, Tanzania, United Arab Emirates and Nepal.

Plants of jk cements limited

We manufacture grey cement in two facilities located at Nimbahera and Mangrol

in the state of Rajasthan in Northern India. White cement is produced at our

facility at Gotan in the state of Rajasthan. Our plants have obtained many

accolades and recognition, the most noteworthy being : ISO-9001:2000 QMS

and ISO-14001:2004 EMS for the grey cement facility at Nimbahera and ISO-

9001:2000 QMS, ISO-14001:1998 EMS & OHSAS-18001:2005 Occupational

Health and Safety for the white cement facility at Gotan. The construction of our

first most modern dry cement plant began in 1970 in Nimbahera in Rajasthan.

The following table shows a breakdown of production of the Nimbahera, Mangrol

and Gotan cement facilities for the periods indicated:

PRODUCTION (IN METRIC TONS)

  Fiscal 2003 Fiscal 2004 Fiscal 2005Six months ended

September 30, 2005

 Nimbahera

 Mangrol

2,323,283 2,272,760 2,414,196 1,256,942

570,464 718,572 912,419 493,211

 Gotan

Nimbahera Unit (Grey Cement)

Commenced commercial production in 1975 with an initial capacity of 0.3

MnTPA. In the year 1979, second production line was added to enhance the

production capacity to 0.72 MnTPA. 1982 witnessed the incorporation of another

production line taking the production capacity to 1.14 MnTPA. In 1988 a pre-

calciner was installed and the production capacity touched 1.54 MnTPA.

Constant modernization and up-gradation was instrumental in bringing the plant

to its present capacity of 2.8 MnTPA.

Capacity utilization of around 90%

Can produce up to 3.1 MnTPA with production of silicate cement on capacity of

2.8 MnTPA

Recognition : ISO-9001:2000 QMS and ISO-14001:2004 EMS

200,149215,538

224,48199,343

Mangrol Unit (Grey Cement)

Commenced commercial production in Dec’2001 with a capacity of

0.75 MnTPA. Its close to Nimbahera plant (10kms away) – offers it

significant synergy benefits like assistance from technical &

commercial staff of Nimbahera Complex.

Additional Grinding facility of 0.25 MnTPA .

The production process

The production process for cement consists of drying, grinding and mixing

limestone and additives like bauxite and iron ore into a powder known as “raw

meal”. The raw meal is then heated and burned in a pre-heater and kiln and then

cooled in an air cooling system to form a semi-finished product, known as a

clinker. Clinker (95%) is cooled by air and subsequently ground with gypsum

(5%) to form Ordinary Portland Cement (“OPC”). Other forms of cement require

increased blending with other raw materials. Blending of clinker with other

materials helps impart key characteristics to cement, which eventuallygovern its

end use. The basic differences between these processes are the form in which

the raw meal is fed into the kiln, and the amount of energy consumed in each of

the processes. In the dry process, the raw meal is fed into the kiln in the form of a

dry powder resulting in energy saving, whereas in the wet process the raw meal

is fed into the kiln in the form of slurry. There is also a semi-dry process, which

consumes more energy than the dry process but lesser than the wet process.

The basic steps involved in the production process is set out below:

Dry process

All J.K. Cement plants are dry process plants. Limestone is crushed to a uniform

and usable size, blended with certain additives (such as iron ore and bauxite)

and discharged on a vertical roller mill, where the raw materials are ground to

fine powder. An electrostatic precipitator dedusts the raw mill gases and collects

the raw meal for a series of further stages of blending. The homogenized raw

meal thus extracted is pumped to the top of a preheater by air lift pumps. In the

preheaters the material is heated to 750°C. Subsequently, the raw meal

undergoes a process of calcination in a precalcinator (in which the carbonates

present are reduced to oxides) and is then fed to the kiln. The remaining

calcination and clinkerization reactions are completed in the kiln where the

temperature is raised to between 1,450°C and 1,500°C. The clinker formed is

cooled and conveyed to the clinker silo from where it is extracted and transported

to the cement mills for producing cement. For producing OPC, clinker and

gypsum are used and for producing Portland [Pozzolana] Cement (“PPC”),

clinker, gypsum and fly ash are used. In the production of Portland Blast Furnace

Stag Cement (“PSC”), granulated blast furnace slag from steel plants is added to

clinker.

Awards given to the JK White cements limited

Architect of the Year Award (AYA)

Architecture was more or less identified with housing & more so with elite

housing. However, many countries have used architecture effectively for public

structures also, such as highways, metro rails, factories, harbours & any other

public facilities. These projects/structures shall consume lot of building materials.

If these structures have to look pleasing, relevant architecture has to be applied

in their designs.

The subject of challenges to architecture vis-a-vis town planning, infrastructure

development & affordable housing is being discussed in various countries

through various forums. Mr.Yadupati Singhania, Managing Director,

J.K. Cement Ltd., thought that we could contribute to this cause by encouraging

outstanding talent in the profession of architecture as a continuous process &

thereby set an example for others in this profession to do better & better.

This is how Architect of the Year Award (AYA) began way back in the year 1990

(1st Architect of the Year Award). Awards were subsequently extended to

architects of neighbouring countries from the year 1996 (7th Architect of the Year

Award). To encourage state level architecture, State Architecture awards were

also introduced from the award year AYA-98 (9th Architect of the Year Award)

Quality policy

Technologies change, needs change, and in turn products change. What remain

unchanged, are values and ideas that propel any entity forward. Ideas that are

concrete and unwavering, just like their outcome.

At JK Cement we are crossing milestones, one after another, propelled by the

following concrete ideas :

1. To provide products that fully comply with technical specifications committed to

our customers, at the most competitive price.

2. To ensure complete reliability in our dealings with customers, distributors,

suppliers & other partners.

3. To operate our manufacturing facilities in such a way, that they help sustain

the environment & provide new opportunities for the underprivileged in that

region.

4. To ensure that every department of our every office encourages new & better

ideas and freedom of expressing the same, and cultivate a work environment

that rewards excellence in every employee’s chosen area of work leading to a

harmonious & fulfilling atmosphere.

5. To motivate every team member to challenge his last best performance and

out do it continually

6. To remain abreast and imbibe the latest technological trends for the benefit of

our customers.

The rationale of the study

As my project topic suggests, I have tried to find out the CUSTOMER

SATISFACTION AND MARKET POTENTIAL OF JK WHITE CEMENTS

This topic was chosen mainly to find whether the customers who buy JK

CEMENTS require some more modifications in the brand i.e

.changes in price or improvement in the quality of the cement etc.

the quality of the cement and for this purpose people from different strata were chosen like general customers, dealers, masons, bulk consumers etc…

I have used questionnaire and other scientific tools like personnal

interviews and telephonic interviews to know about the customer mood and the

I have also tried to find the market potential of jk cement in Delhi and NCR. For

this I had conducted market research in different parts of Delhi like Sarita vihar ,

Nehru plce, some parts of Ghaziabad, Gurgaon and faridabad.

For this I met different dealers , retailers and masons as well as industrial bulk

suppliers in different parts of the DELHI \ NCR

Scope of the study

This study includes direct interaction with the customers and this helps us to

know the ‘Market potential and customer satisfaction level ‘to great

accuracy. This study is of great importance to the company which will know

about the customer preference to buy a particular brand.

The company will gain information about customer’s preference depending on

the following factors:-

1. Price factor

2. fineness of the cement

3. setting time

4. attractive packaging

5. brand image—one of the important factor

6. quick delivery time

7. wide availability

So , scope of this study is to achieve customer satisfaction

because customer satisfaction and quality maintenance is company’s

primary objective…

Objective of the study:-

Main objective:- The main objective of this study is to find out the MARKET

POTENTIAL AND CUSTOMER SATISFACTION LEVEL through scientific tools

like interviews and questionnaire .

Specific objectives:- The specific objectives will be met by finding the customer

satisfaction level through direct interaction with the customer and by knowing

their preference. This will include all the processes like asking questions from

the customers through questionnaire which will be included in the primary survey

. once the primary survey is done , secondary survey will be done . The path of

the secondary survey will be decided depending on the conclusions coming out

of the primary survey.

Research methodology

Data collection method—

I have selected around 50 persons for the the interview.

I have taken help of the questionnaire , personal and

Telephonic interview.

I have collected the data through focus interviews. I have concentrated

on taking interview mainly from the following group of people.

1. Masons—20%

2. Architects/ engineers--- 10%

3. Retail stockiest---- 2

4. Wholesale---- 10%

5. Industrial bulk consumer—10%

6. General consumer---- 30%

The survey was descriptive and sample chosen was mainly on the judgement of

the researcher with the help and proper consultation of project guide..

In this kind of sampling method , the population elements are based on the

judgement of the researcher. The researcher exercises judgement or expertise ,

chooses the elements to be included in the sample , because he or she believes

that they are represntative of the population of intrest or are otherwise

appropriate.

In this survey , I visited the dealers of cement also to know the strategy of the

companies , especially jk cements to satisfy the customer as they buy the

cement of any particular company….

The main purpose of the descriptive research is description of the state of

affairs as they exist at present.

Swot analysis of JK white cements

Strengths :

1. Leading position in attractive Northern India grey cement market:

Based on CMA data, Northern Indian cement manufactuers have consistently

operated at the highest levels of capacity utilization among India’s five regions.

We believe this reflects the strong demand in Northern India for cement products

relative to supply. Further, based on capacity expansions announced by cement

manufacturers, we expect cement plants in Northern India to continue to operate

at high utilization levels and anticipate continued strong demand for our grey

cement products in the near and medium-term. We believe that we are well

positioned to take advantage of this demand, as the fourth largest grey cement

manufacturer in Northern India, and the largest grey cement manufacturer in the

state of Rajasthan.

2. Second largest white cement producer in India:

White cement accounted for 16.6% of our total cement revenue and

35.2% of adjusted EBITDA from our cement operations in fiscal 2005, and

15.5% of revenues and 26.7% of our adjusted EBITDA from our cement

operations in the six months ended September 31, 2005. Unlike grey cement,

the white cement industry in India is highly concentrated with the two largest

players accounting for the substantial majority of India’s production capacity.

Consequently, prices of white cement have been relatively less volatile and

sales of white cement have generated more stable cash flows for us even

during industry downturns in grey cement. We also believe our position as the

second largest producer of white cement in India, together with our

nationwide delivery network, significantly enhances the overall brand image of

JK Cement.

3. Proximity and access to large reserves of high quality limestone:

We have access to large reserves of limestone for both our grey and white

cement operations, which we believe are sufficient to sustain our operations

well into the future. Based on independent geological surveys of different

mines during 1996 to 2001, we believe that our limestone reserves are

sufficient to support our current and planned capacity for approximately 40

years for both grey and white cement. (Put in risk - assuming we are able to

renew our existing leases upon their expiry) As one of the first cement

producers in Northern India, we were able to choose our limestone reserves

in an area with high quality limestone resources.

4. Quality of products and strong brand name: We believe that brand

name and reputation are important to retail purchasers of cement in India.

We have built a strong reputation among cement purchasers by

consistently providing high quality products. We believe that there is

strong customer awareness of our brands, JK Cement

(“Sarvashaktiman”), for grey cement in our principal market in Northern

India, and JK White (“Camel”), for white cement across India. Further, we

believe that our brand name and our reputation for consistently supplying

high quality products provide us with a competitive advantage in ensuring

that cement dealers carry our products.

5. Extensive marketing and distribution network:

We have a wide distribution network for grey cement in Northern India. We

also have a strong all-India distribution network for white cement. Our distribution

network for grey cement products consists of 44 feeder depots serviced by seven

regional sales offices in Delhi, Haryana, Uttar Pradesh, Punjab, Rajasthan,

Madhya Pradesh and Gujarat. Our white cement network comprises 20 feeder

depots serviced by 13 regional sales offices in Delhi, Chandigarh, Uttar Pradesh,

West Bengal, Andhra Pradesh, Tamil Nadu, Karnataka, Kerala, Maharasthra,

Gujarat, Madhya Pradesh and Rajasthan. In addition, we have more than 4,000

retail stores that stock our grey and white cement products, as well as 22 sales

promoters and four handling agents. We believe that the extent of this network,

and our relationships with our dealers, enables us to maket and distribute our

cement widely and efficiently.

6. Experience and technical know-how:

We have 30 years of experience in the Indian cement industry, which we believe

provides us with the skills to maximize production efficiency, expand production

capacity quickly and reduce costs. Over the years, we believe that we have

developed long-term customer relationships and a strong reputation for quality. In

addition, we have a proven track record of upgrading and modernizing our

production capabilities efficiently, having increased our production capacity at

Nimbahera by more than 80%, from 1.54 million tons in 1998 to 2.8 million tons

as of September 30, 2005.

Weaknesses :

1. It is at relatively low position in other parts of the country except north.

2. Low attention on customer relationship management in some parts of

INDIA.

3. No high revenue from the white cement market because there are only

two players who have considerable market share and this has resulted in

the stable cash flows.

4. Due to presence of other cement producers in Delhi and its adjoining

areas the market share of the JK cement remains low.

5. It has its own mines reserves but it has to consistently renew the lease

failing which it will have no source of production at its major production

site.

Opportunities :

1. Rural projects of state governments and central governments like dams

and bridges can be a major opportunity for the company.

2. Company is a part of reputed and huge jk group. So it can expand its

market in foreign areas also utilizing its brand leverage.

3. Prestigious Projects can be major opportunities.

4. It has major opportunities in real estate industry due to boom in the related

projects.

5. Indian infrastructure is seeing a two fold increase. So there is also a lot of

opportunity in the concerned sector

6. Major foreign projects of governments can also be a major opportunity.

Threats

1. Cost of production is high. So company needs to reduce the cost of production and should concentrate on promotional schemes too.

2. Presence of other big players in delhi region is a major threat for the company.

3. Rising cost of raw material is also a threat for the company

Marketing strategy of jk cements limited

1.SEGMENTATION:-

The company has segmented the market geographically . it sells its

products all ovwer India with major presence in northern region

PRICING STRATEGY

1. . Before deciding the price of the cement company has

considered the following points:--

Cost factor:-

Manufacturing cost

Transporting cost

Storing and material handling

Other cost

Officer expenses

Other expenses

Tax and interest

Competitor’s price and offering

MARKETING STARTEGY

Company conducts market surveys to identify market trends and customer’s

response, company position in the market etc. There is R and D department

which continuously trying to improve the quality of the product at the

minimum cost and trying to meet the demand of the customer.

MARKETRING STRATEGY FOR COMPETITORS

Company always keeps an eye over its competitors activities and its

offerings like different promotional schemes, product price etc. It also takes

proper action according to competitors strategy.

DISTRIBUTION STRATEGY

The company is distributing cement by following ways:-

Direct to consumer

Depot

1.whole seller

2.retailer

Director General of sales and disposal

1. Tender sales

2. Government department

Non trading sales

1 wagon load

2. Institutional sales

Method of developing dealers:- Company conducts the market survey also to motivate the sub dealer and

advertise the programmer. The company takes profile of the dealers and

gives dealership only to those in a particular area where the company is not

having already existing dealer.

MARKETING STRATEGIES

1. To increase sales in high realization 2. To develop stockiest network consisting of retailer or final outlet which directly sells to customer.

3. Increasing sales of branded cement ie jk white cements

4. Marketing distribution network more efficient and cost effective.

The company has a dedicated team of highly skilled professionals and

Experienced application engineering. They are functioning in an advisory

capacity. Besides handling their constructional problem the cell offering all

kind of assistance in the selection of the right cement for different application

to ensure cost effective , durable and safe construction.

DATA ANALYSIS

In this section , we will analyze the data which was obtained through different means of

data analysis like questionnaire, personal interviews. Since this survey was related to

the cement industry, so people related to it like masons, bulk consumer , retailer and

above all general consumer were interviewed.

The whole data analysis section is done with help of different charts, bars and other techniques available. The interview was mostly done on selected persons of selected category. I have done survey mainly on the basis of following structure…..

1. Masons—20%2. Arch/ Engineers—10%3. Retail stockists--- 20%4. Wholesalers--- 10%5. Bulk consumers—10%6. General consumer—30%

For doing the survey , a questionnaire was designed as a scientific tool so as to know the customer’s attitude towards the satna cement works limited.

The main purpose of this survey was to know the customer satisfaction level

. This survey was done partially DELHI and somepartsd of NCR also. Some other parts of the country like the neighboring UP was also touched for the survey.

DATA ANALYSIS

This page and onwards will contain step by step analysis of different questions…

Q 1 How important is price for you while buying the cement?

1. MASONS

Choices / options No of respondents1. Extremely important 3

2. Rarely important 23. Not at all important 0

2. Arch / engineers

Options / choices No of respondents

1.Extremely important 2

2.Rarely important 1

3.Not at all important 0

Q .2 Do you consider colour of cement as an important factor for buying of the cement?

1. Masons

Options /choices No respondents1.Definitely important 2

2.Not so important 13.Sometimes important 1

4..Not sure 1

2. Retail stockists.

Options No of respondents1.definitely important 12 .not so important 2

3.sometimes important 14. not sure 1

3. General consumer

Options No of respondents1.Definitely important 1

2.Not so important 43.sometimes important 1

4.not sure 1

Above interpretation indicates that colour of the cement is not an important factor. From survey done on different group of people , it is evident that masons, retail stockists and general consumer, all of them do not give too much attention to colour of the cement….

Q .3 Is early setting time an important factor in buying of the cement?

Architects / engineers

ParametersNo of respondents

1.Important 12.Not important 03.Extremely important 24.Not sure 0

3. Retail stockiest

ParametersNo. of respondents

1.Important 12.Not important 03.Extremely important 34.Not sure 1

4.General consumer

ParametrsNo. of respondents

1. Important 22. Not important 13.Extremely important 44. Not sure 0

The above interpretation clearly indicates that early setting time is one of the important factor with all group of people giving more weightage to it.

Q .4 Do you think that attractive packaging is an important factor while buying a cement?

1. Retail stockiest.

ParametrsNo of respondents

1. Very much 2

2. Not so much 23. Can’t say 1

2. Whole salers

ParametrsNo. of respondents

1. Very much 12. Not so much 13.Can’t say 1

3. General consumer

Parameters No of respondents

1.Very much 22. Not so much 4

3.cant say 1

The response to this question clearly indicates that people do not tend to buy those cement which have good and attractive packaging as after all quality matters.

4. Rate the following on the scale of 1 to 5!!

ParametersBrand name

Brand image

Delivery time

Price Packaging

ACC 4 3 3 4GUJ AMBUJA

3 3 3 3

SATNA CEMENTS

3 2 3 2

LAFARGE 4 3 3 3

Table given here is determining the customer’s preference of different brands depending on different parameters.

It is evident from the table that ACC and LAFARGE excel on every parameter i.e. brand image, delivery time, price and packaging etc…. Brand image and price are one of the important factors in the selection of any Cement.

Q5. Do you prefer the cement which is very fine (i.e. fineness of the cement)?

1. Masons

ParametrsNo of responses recieved

1. Sometimes 12. Always 23. Never 14.Can’t decide 1

2. Retail stockiest

OptionsResponse

1. Sometimes 12. Always 33. Never 14.Cant decide 0

3. General customer

Choices / optionsResponses

1. Sometimes 32. Always 33.Never 14.Cant decide 0

We can interpret from the response received that fineness of the cement is one of the

Important factor that consumer takes into account while buying a cement.

Q6. How many retailers of Ambuja Cement do you find in your city?

1. Masons

No. of retailersResponse

1 . 1-5 2 2. 5-7 33. 7-10 04. More than ten 0

2. Wholesalers

OptionsNO. Of responses

1. 1-5 12.5-7 23.7-10 04. more than 10 0

The response received from the customers indicate that there are enough cement retailers in their city.

7. If you were a dealer Which type of schemes and incentives do you except from the company?

OptionsNo of responses

1. Gift items given 12. Award for best retailing 2

3.Promoting certain incentive schemes

0

4.Educate about the company’s policy

0

5. Foreign tours 2

It is evident that the retailers want awards, tours and gifts on equal basis.

8. Do you find your desired cement easily in your city?

1.Masons

OptionsResponses

1.sometimes 22.Always 23.Never 1

2. Industrial bulk consumer

optionsNo. of respondents

1. Sometimes 12.Always 23.Never 0

3. General customer

choices responses1. sometimes 2

2. never 13. always 4

Q 9. Which medium of information made you aware about satna cements?

1.General customer

OptionsLevel of responses

1. Newspapers 22.Hoardings 33. TV ads 14. Meeting with dealers 1

2. Industrial bulk consumer

optionsNo of respondents

1.Newspaper 02.Hoardings 13.Tv ads 04.Dealers meet 2

Analysis of this question reveals that hoardings are the best means of the communication as any illiterate person can also read the various signs which could be there on the hoardings….. and also there should be regular dealer meeting to know the customer aware of the cement…

Q9. Do you find compressive strength of the cement as a major factor while buying any cement?

1. Masons.

OptionsResponse rate

Very much 3Not much 2Cant decide 0

2. General customer

OptionsResponse level

Very much 5Not much 1Can’t decide 1

Analysis of this question reveals that customers don’t comprise on the matter of quality…

Q 10. Is the response time of the company to the complaints satisfactory?

1. Wholesalers

ParametersResponse level

1. Satisfactory 12.Good 13. Not so good 14. Not sure 0

2. General customer

ParametersResponse level

1. Satisfactory 32 Good 23. Not so good 14. Not sure 1

Hence , we analyze that response time of the company to the complaints is overall satisfactory….

Chapter –6

Limitations

This survey was conducted partially in DELHI , northern part of India and some parts of UP. So market potential of the JK cement in other parts of the country couldn’t be determined.

Some customers were not able to understand some of the questions.

The sample size was not enough and it failed to give the clear picture or the results of the survey.(Sample size =50 )

Some customers or dealers did not cooperated well.

The questionnaire did not cover the whole aspect of the market potential of JK cements limited.

Findings

On the basis of analysis of the questionnaire and data analysis, we find that:----

1. Market potential of the Jk cement limited is very good in the northern parts

despite the presence of so many branded cement companies like ACC ,

GUJRAT AMBUJA etc.

2.Customer satisfaction with respect to the JK cement is satisfactory.

3. Despite the increasing cost of the raw material the company is able to bring

down the cost of manufacturing through procurement of raw materials by the

mines which are located nearby .

3. Customers come to know about JK cements mainly from hoardings as many

people are illiterate .

4. Customers want more prizes and dealers want more incentives , gifts and tours.

Dealers also want more meeting with officials of the cement companies.

5. Bulk consumers want more and more cash discount.

Suggestions

1. The company should concentrate on more aggressive advertisement to

promote their products.

2. The company should launch more and more promotional schemes like “ two

for the price of one” or more discount coupons.

3 Company should do more to promote their brand as customer prefer good

brand while buying any cement.

4. Customer prefer price as an important factor while buying any cement so the

company should fix the price accordingly.

5. Company should concentrate on direct meeting with the customer as they are

the most vital element in deciding the growth or decline of any company.

6.Company should decrease the response time to the complaint received.

7.The company should fix certain amount of cement especially for the dealers

and give them free of cost as incentives.

8. The company should appoint more and more persons for the promotions of the

brand.

9. The company should expand its market and concentrate in deep penetration in

northern part of India.

10. Company should decrease delivery time of the cement.

BIBLIOGRAPHY

1. www. jk cement.com

2. www. jk -white.com/

3.Labour and Industrial chronicle-- Survey of major cement plants

4. Marketing research—Naresh kumar Malhotra , Pearson education

5. Marketing Management—Phillip Kotler