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Submitted To: Rajasthan Technical University, Submitted By: Kapil Sen Kota

Company Guide: Mr. Narip Bazwa Batch: M.B.A. (2010-2012)

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Table Of Content

Contents Page No.

Certificate of Summer Training

Certificate of Approval

Acknowledgement

Executive summary

Introduction of cement industry1. About Cement2. Type Of Cement3. Red Oxide Cement4. Manufacturing Process5. Future Of Cement Industry

Introduction to Organization 1. Company Profile 2. Company vision 3. Company mission 4. Company philosophy 5. Success Drivers 6. Innovation 7. Financial results & annual reports

8. Code of conduct 9. Markets classification 10. Information technology 11. Progressive management 12. Shree cement policy 13. RAS Cement ProjectMarketing

Sales Promotion Strategies1. Research Design2. Scope of Study3. Research Methodology

Analysis and interpretation

SWOT Analysis

Recommendations

References

Bibliography

Annexure

Major project of shree cement

Certificate of approval

The following summer internship report titled "Analyzing the Market Potential and Sales Promotion" is here by approved as a certified study in management, carried out and presented in a manner satisfactory to warrant its acceptance as a prerequisite for the award of master of business administration for which it has been submitted. It is understood that by this approval the undersigned do not necessarily endorse or any statement made, opinion expressed or conclusion drawn therein but approve the summer internship report only for the purpose it is submitted.

Summer internship report examination committee for evaluation of summer internship report

Organizational guide: -

Name : Mr. M. K. Joshi Designation : Addl. General Manager (P&A) Address : shree cement limited P&A, Beawar -305901, Rajasthan

Name : Mr. Narip Bazwa Designation : general manager of marketing Address : shree cement limited Marketing division, jaipur-302012, Rajasthan

Acknowledgement

I would like to thank Shree Cement Ltd. For having given me the opportunity to do a project that was challenging as well as rewarding. Working on the project for marketing division has enabled me to add value to the organization as a whole and has all in been a wonderful learning experience for me.

Special thanks go to the marketing department for their complete support throughout the tenure of the project.

I am obliged by Mr. Narip Bazwa, general manager, marketing for having taken me under his guidance for the project.

A deep note of gratitude goes to Mr. M.K. Joshi, Addl. General Manager, P&A and my guide & mentor during the project for his unstinting encouragement, help in understanding various integral part of this project.

I am highly indebted to the people mentioned above and all the employees of Shree Cement Ltd., who have been an integral part of this project.

And last but not the least I am grateful to my institute, Rajasthan Vidya Peeth Vijay Singh Patheek Shramjeevi College Of Management, Ajmer Rajasthan that provided me this opportunity to interact with this organization and understand the intricacies of the corporate world.

Thank You

Kapil Sen

Executive summary

Given the external environment with the failure of the doha talk, rising crude oil prices, rising competition from peer set countries and pressure from developed and neighboring countries the congress led government has fared well in its first two years of governance. India is expected to cross GDP growth of 8% during 2005-06 compared to an earlier estimated growth of 7.5%.

India is experiencing a metamorphosis in terms of business environment especially in the industries directly related with commodities like cement and allied industries. Regulations with regard to investments have become hassle free compared to the earlier licensed raj system.

Foreign multi nationals have increased their investments in the Indian Diaspora or are venturing for a partner which has not started its shop in India. Foreign direct investments (FDI) have been allowed in all sectors to boost productivity. Industries like cement are in the news due to the huge investments made by an MNC, which is worlds second largest cement manufacturing firm, has escalated the value of cement firms in India.

India is second largest cement manufacturer with an installed capacity of 160 million tones after china accounting for 6% in the global cement market. The consumption grew a record 11 percent for the nine months ended December, 2005 to 97.8m metric tone (MMT). The construction boom and rising public infrastructure investment have fuelled domestic consumption in recent years. The recent surge in cement consumption and the slower pace of capacity addition have reduced the supply-demand imbalance considerably-capacity utilization of plants has been growing consistently in the past four years.

From 80.1% in 2002, it grew to 81.6%, 82.6% and 83.7% for the financial years 2003, 2004 and 2005 respectively. In fact, if the government's ambitious bharat nirman programmed takes off, economy continues to

grow at the current rate, the industry could even slip into capacity deficit. The cement companies then have to take a stand whether to cater the needs of domestic markets or foreign market where realization is on the higher side. The cement retail price have declined during 2005-06 but continue to over rule when compared to the previous year.With effect from jan 2006 tamil nadu has scrapped the dual tax system imposed on cement and notified it as the uniform sales tax of 14%. The uniform selling prices is expected to have a positive effect on the bottom line of the companies.

The performance of cement companies was led by India cements and grasim, registering a high growth rate in terms of sales during period ended December 2005. India cements and grasim have witnessed a growth as high as 32% to Rs.3466.30 millions and 30% to Rs.8948.6 millions during the quarter ended December 2005. India cements ltd (ICL) and ultra tech cement (UTC) have been witnessing a high volume growth among the major cement companies.

UTC has witnessed 12.94% growth in terms of volumes during the same period on YOY basis. Better capacity utilization has led to an improvement in the operating performance of cement companies. All cement companies except GACL have fared well in terms of growth of operating profit per unit. GACL is considered to be a low cost cement producer in the

country having the highest operating profit per tonne of Rs 515.59 followed by grasim's Rs 393.78 and UTC's Rs 350.74. All major cement companies have logged profits with a positive growth. UTC and ACC have registered a high growth in terms of growth of PAT.

UTC has registered a growth of 316% and ACC has witnessed 262% in terms of after-tax-profits. Cement firms are set for higher quarterly profits as analysts see a bright future thanks to a busy building sector in a rapidly growing economy.

Demand for cement, which is also growing at 8% a year, is expected to help prices in the absence of major supply additions. The outlook for the housing industry is highly positive considering the rise in income level; the easy availability of mortgage finance. Another major driver for the demand in cement would be the increased focus on infrastructure.

The central government has approved a special purpose vehicle for funding infrastructure projects. it is estimated that south demand would continue to grow at around10% to 12% every year, backed by the strong economic growth of 7% to7.5%.

The industry is primarily dominated by few players namely – AC The industry is primarily dominated by few players namely – ACC,Gujarat ambuja, grasim, madras cements and shree cement. Cumulatively, these players constitute about 90% of the total market supply. As for the demand, it is growing at an impressive rate with the YOY demand for the months of January, February, march 2006 being 16, 18, 17.5 % respectively. The market demand scenario will be dealt with in detail in the market assessment section.

Among the most efficient players in north India

Shree cement is among the most efficient cement producers in north India with a capacity of 2.6mn tons p.a. in Rajasthan. Shree has consistently produced at above average capacity utilization with de bottlenecking of exiting facilities. The company has reported a strong EPS growth of 28% YOY in Q1 FY04.the stock trades at a P/E of 10.5x04FY04E and 6.4x5FY05E earnings.

Commissioning of power plant to add to gains

Shree has commissioned, in April 2003, a 36MW (two units of 18 MW each) thermal based captive power plant. Shree expects a net saving of Rs250mn on account of the savings in power costs. Shree has also undertaken a number of process-optimization measures to reduce its power & fuel cost.

Focus on branding to aid margin expansion

To insulate itself from price fluctuation and to expand operating margin, the company has started branding its product. It launched the corrosion resistant red oxide brand in FY03, which will lead to higher realization and improved margins. Ultra red oxide is expected to account for 30% of the company's sales in FY04. despite poor price realizations, the company has been able to maintain margins by innovations such as witching from imported coal to pet coke in its kilns, use of hydraulic rock breakers for reducing limestone costs, by using road transportation for freight cost rationalization.

INTRODUCTION OF CEMENT INDUSTRY

. INTRODUCTION OF CEMENT

Cement the modern day inexpensive, reliable construction material, possesses excellent cohesive and adhesive and strength properties. This material is used in creating vast infrastructure like ultra high- rise building, roads, bridges, airports, building and docks etc.

it is also used in constructing dwelling units for the population and its consumption level is taken as indicator of the level development.

An individual planning to build a house for his own use or a builder of a construction project goes to the market to buy cement for his construction work. Unlike in the past when cement was a controlled commodity; today cement is freely available in the market under different brand names. Besides the cost of cement, which is about 12 to 15 percent of the total consumption, cost quality of cement is also important from the point of view of strength and durability of structure.

Cement is a complex compound of oxides of calcium, silicon, iron and aluminum. These compounds are present in cement in a pre-determined proportion. Raw material used to manufacture cement is mainly limestone along with iron oxide in order to obtain the various oxides in proper proportion. Pulverized raw meal is sintered in a kiln to the point of incipient fusion to produce cement clinker. Clinker is ground with small percent of gypsum to manufacture ordinary Portland cement.

IT’S DISCOVERY:-

Joseph Aspedine of England first discovered the cement in the year 1878. Since the discovery took place in the island of Portland, thus the name was Portland cement.

2.VARIETIES OF CEMENT AVAILABLE IN THE MARKET:-

Common types of cement normally available in the market and there specific uses are as under: -

GENERAL VARIETIES

S.No. Cement Type Specific Use1. OPC (Ordinary Portland Cement)

a. 33 Grade

General construction work where

High strength concrete is required

Plastering, finishing works, etc.

b. 43 Grade Used where M-15, M-20 and Above grade

concrete is required Used for precast items

and general Construction work. Strength

Development is faster than 33 grades.

c. 53Grade High strength cement used For multistory

building, Precast, priestesses items bridges,

Tall structure etc. develops very Fast

strength and speeds up Construction.

2. a. PPC (Clay Based)

(Pozzolana Portland Cement)

b. PPC (Fly Ash Based)

Construction of Dams, Dikes.

Sewages pipes, plastering.

Masonry and Finishing Works.

SPECIAL VARIETIES

3. PBFS (Portland Blast) Construction of Bridge,Seaport Where

saline water comes in Contact with the

structure. Also used in construction of

Channels though which The washing of

acids, salts Sulphur, etc flow.

4. White Cement Manufacturing of tiles, artistic,

Decorations, and floor to decorate Concrete

etc. Generally means For non-structural

uses.

5. SRC (Sulphate Resistant) Marine structure, under ground

Construction, chemical plants, Effluents

treatment works, found Attain piles etc.

6. Oil Well Cement Used by petroleum industry for Cementing

gas & oil wells at high Temperatures and

pressures.

7. Masonry Cement Mortars for bricks, stones and Concrete

block masonry as well At high

temperatures and pressures.

8. Rapid Hardening Cement Quick setting and high early Strength

cement, filling cracks In dams fast

construction work Of Army.

3. RED OXIDE CEMENT

Steel friendly cement using red oxide will now make the life of steel structures used in construction longer than before.

Shree Cement claimed that its first product of its kind in the country and the new generation cement would protect the steel structure from getting rusted. Red oxide has been used in manufacturing the cement, which would give a protective layer to the steel structure.

Shree Cement took the initiative to find out why the old heritage building such as the grand old forts of the state, the Qutub Minar and the Taj Mahal still stand strong, while the modern building have a shorter life span. Extensive research by Shree Cement in this aspect revealed that modern building use steel structures as load-bearers to reduce the thickness. Steel, if rusted weaken and leads to the collapse to structures irrespective of the strength of the cement.

Red Oxide is used with the cement it becomes steel-friendly as red oxide has the property to protect steel. The Ultra Red Oxide Cement will revolutionize the construction industry.

4. MANUFACTURING PROCESS

Limestone, shale, clay and silica are crushed proportioned to the correct chemical

composition and ground to a fine consistency. Small quantities of iron oxide and allumina

may b added to adjust the raw material mixture. The mixture is heated to about 2700 F

(1500 C) in large rotary kiln. Clinker a hard granular intermediate product is discharged

from the kiln and is ground with approximately five percent gypsum (which controls the

setting time) to produce cement.

Cement manufacturing is energy intensive. The majority of the thermal energy is required

in the clinker producing process. A significant amount Of electrical energy is required

(mainly in the finish grinding process where clinker is ground with gypsum of produce

cement) CO however, comes from two distinct sources both related to the conversion of

the raw material into clinker.

Limestone is the form of calcium carbonate (Caco3) is the main raw material component

(Approximately 70-80%) of clinker. Before this lime can react with the oxides of silica

and silica and allumina the limestone must be broken down into free lime or calcium

oxide (CaO) and carbon dioxide (CO ) the Co2 is discharged to the environment leaving

the CaO free to react with other oxides and form clinker. The process that decomposes

limestone into CaO and CO2 is called calcinations and requires temperatures in excess of

1650 F. The heat required to obtain these temperatures is obtained through the combustion

of fuels (Coal, natural gas, waste fuels) all of which produce combustion products

including CO2.

Drying of raw materials in cylindrical dryers. Raw material used: hard limestone and

Soft clay.

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Crushing and grinding in separate grinding mills.

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Blending\ mixing of raw materials in the right proportion by pumping air into the

container.

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Burning the mixture so prepared and turned in a kiln at a temperature of 1300-1500 to

produce clinker (supported by stack ESP for the capture of outgases).

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CEMENT

COMPRESSIVE STRENGHT

It is one of the important properties of cement. For OPC the compressive strength must be highest in order to with stand load and other tension

Cement Grade 28 days compressive strength

33 330 Kg/cm2 43 430 Kg/cm2

53 530 Kg/cm2

5.Future of Cement Industry

World Cement Industry Forecast To 2010 & 2015

Global demand to rise 4.7% annually though 2010

Global demand for cement is forecast to grow 4.7% annually to 2.8 billion metric tons in 2010. China, which is already by far the largest market for cement in the world, will register the biggest gains in terms of the total amount of cement sold. Other developing parts of the Asia\Pacific region and Eastern Europe, as well as a number of nations in the Africa\Mideast and Latin America regions, will also record cement market gains, fueled by a robust construction outlook. Vietnam, Thailand, the Ukraine, Turkey and Indonesia will record some of the strongest increases in percentage terms. Market advances will be less robust in the developed arrears of the US, Japan and Western Europe, with maintenance and repair construction accounting for much of the growth in cement demand through 2010. However, a pickup a construction spending in Germany and Japan following an extended period of decline will help bolster overall developed world market growth.

Non-Blended Pozzolanic, Masonry Cements Among Best Prospects

Demand for non-blended Pozzolanic cements, masonry cement and other cement types will record the strongest gains through 2010. Sales of these products will be simulated by the cost, environmental and performance benefits they offer. Demand for blended cements will also climb at an above-average pace, driven by their superior performance in selected applications. These types of cement are also less costly to manufacture and are generally considered to future market gains as well. Sales of straight Portland cement, which currently accounts for more than three quarters of all cement demand worldwide, will be less robust but still healthy, benefiting from continued growth in construction spending worldwide and further advances in manufacturing technology.

Ready-mix concrete to be fastest growing end use

The ready mix concrete market is expected to be the fastest growing end-use segment. Ready-mix concrete companies account for a comparatively small but increasing share of total cement demand in a number of fast growing developing countries, and suppliers will benefit from an extremely favorable market outlook in china, where large- scale construction projects will require significant amounts of ready-mix concrete through 2010. Consumer demand for cement will also climb at an above-average pace, stimulated by rising personal income levels in developing parts of the world, where consumer sales can account for half or more of total demand, and by new product introductions in mature developed world markets.

ABOUT THE ORGANIGATION

1. Company profile

 

Shree Cement Ltd. is an energy conscious & environment friendly business organization. Having ten Directors on its board under the chairmanship of Shri.B.G. Bangur, the policy decisions are taken under the guidance of Shri. H.M. Bangur, Managing Director. Shri. M.K.Singhi, Executive Director of the Company, is looking after all day-to-day affairs. The company is managed by qualified professionals with broad vision who are committed to maintain high standards of quality & leadership to serve the customers to their fullest satisfaction.The board consists of eminent persons with considerable professional expertise in industry and field such as banking, law, marketing & finance.

 

 

Shree Cement Map

 

 UNIT-1Incorporated in 1979.Put up in 1985. Capacity 0.76 Million tonsMain plant supplied by M/s F.L.Smidth Denmark

UNIT-2Put-up in 1997. Capacity 1.24 Million tons Commissioned in a record time of 18 months.The main plant supplied byKHD Humbolt, Germany .M/s GEBR Pfeiffer, Germany

                    

Present Capacity 2.841 MTPA

Largest Cement Plant In Northern India at Single Location 

2. Company vision

3. Company mission

 

4. Company philosophy

"AAH NO BHADRA: KRATAVO YANTU VISHWATAH:""Rigveda:"

Let Noble Thoughts Come to Us from All over the World.

 

5. Success driver

PEOPLE AS PROGRESS DRIVERS

Shree believes that what is present in the minds of people is more valuable than the assets

on the shop floor. All the company’s initiatives are directed to leverage the value of this

growing asset.

TEAMWORK

Shree leverages effective team working to generate a sustainable improvement.

LEADERS AT EVERY LEVEL

Shree believes in creating leaders -not just at the organizational apex but at every level,

resulting in a strong sense of emotional ownership.

CULTURE OF INNOVATION

Shree believes that what is good can be made better -across the organization.

CUSTOMER FOCUS

Shree is committed to deliver a superior quality of cement at attractively affordable prices.

SHAREHOLDER VALUE

Shree is focused on the enhancement of value through a number of strategic and business

initiatives that generate larger and a better quality of earnings.

COMMUNITY AND ENVIRONMENT

Shree’s community concern extends from direct assistance to safe and dependable

operations for its members and the environment.

6. Innovation

Innovative & Cost Conscious Management

• Leadership in the use of alternative waste fuel

First cement plant in India to maximise substitution of imported coal by petcoke

(petroleum industry waste) thereby increasing profitability and saving natural resources.

• Initiatives for Global Warming reduction

Pioneered in the application of innovative Electro Static Precipitator technology in DG

power generation to save fuel and combat pollution, and replaced HSD by LDO.

• Achieved unity power factor .. in electrical distribution system to reduce maximum demand, and transmission / distribution losses

• Partial utilization of waste heat .. for 3 MW power generation. • Initiator in the use of petcoke for power generation in India 36MW captive thermal power plant under commissioning to generate quality power for the Plant,avoid transmission and distribution losses, and provide surplus power to Rajasthan.SAVINGS : Rs 496.46 million pa • Development of DD Cones  In house development of Deduiling Cones for cyclones resulting in reduction in pressure drop, higher outputs and lower energy consumption.

• Single Roller press for two Ball MillsCapacity enhancement & utilization of CM-2 Roller press for capacity increase and energy saving in CM-1      ---Energy Saving - 2.02 kwh / T cement

7. Financial Results & Annual Reports

Energy Conservation Award 2005.

Best Quality Excellence Award for the year 2003-04.

Shree Cement bags Greentech Environment Award for the year 2004-05.

Productivity Award to Shree Cement 2004

"TERI Corporate Award for Environmental Excellence & Corporate Social Responsibility" 2003-04

National Award for Excellence in Energy Management 2004

Overall Quality of the Organization.

Good Corporate Citizenship.

Provision for safe and healthy work place.

Exemplary Employment Practices.

Responsible environment protection and practices

Energy Conservation

Other Important Achievements

Excellent Energy Management Award for 2003

Confederation of Indian Industry (CII) award for "Excellent Energy Management" to Shree Cement Limited

8. CODE OF CONDUCT ON CORPORATE GOVERNANCE

PHILOSOPHY

Shree Cement Ltd is a professionally managed company. The company always believes in complete transparency and discharge of the fiduciary responsibilities which has been assumed by Directors as well as by the Senior Management Executives and/or Staff. Therefore in order to ensure the continuity thereof though, not written but otherwise ingrained, the Board of Directors has approved of the following Code of Conduct for all Directors as well as for the Senior Management Executive and/or personnel and other employees.

 All the Directors as well as Senior Management Executive and/or Personnel owe to the Company as well as to the shareholders : i)   "Fiduciary duty" ii)  “Duty of skill and care” iii)  “Social responsibility”

With the above objects in mind the following code of conduct has been evolved and it is expected that all Directors as well as Senior Management Executives and/or personnel will adhere to it.

FIDUCIARY DUTIES

All Directors as well as Senior Management Executives and/or personnel while dealing on behalf of the company will exercise the power conferred upon him / them and fulfill his / their duties honestly and in the best interest of the company.

DUTY TO EXERCISE POWER FOR PROPER PURPOSES

The Board from time to time shall determine the powers to be exercised by the Directors as well as the Senior Management Executives and/or Personnel and all such powers shall be exercised reasonably.

CONFLICT OF INTEREST

None of the Directors and/or Senior Management Executives and/or personnel will put himself in a position where there is potential conflict of interest between personal interest and his duty to the company. None of the Directors and/or Senior Management Executive and/or personnel will exploit an opportunity arising while associated with the Company for his personal gain either directly or indirectly.

SECRET PROFITS

The Director as well as Senior Management Executives and/or personnel while discharging their duties in a fiduciary capacity is precluded from making any personal profit from an opportunity which may arise being a Director and / or Senior Management Executive of the Company and should always ensure that he is acting for and on behalf and for the good of the Company.

DUTY OF SKILL AND CARE

Since all the Directors as well as Senior Management Executives and / or personnel are acting in a fiduciary capacity and for the benefit of the company, being advocates of the business of the Company, none of them will do anything which is in conflict with the interest of the company.

ATTENTION TO BUSINESS

All Directors as well as Senior Management Executives and/or personnel will give proper attention to the business of the company.

SECRECY AND CONFIDENTIALITY

None of the Directors as well as Senior Management Executives and/or personnel while associated or working for the company will be entitled to disclose either directly or indirectly or make use of the confidential information which may come in their possession while acting on behalf of the company and shall not divulge the financial status and position of the company to any person or persons.

INTERNAL TRADING

None of the Directors as well as Senior Management Executives and/or personnel will directly or indirectly in the name of his family members and/or associates will indulge in any internal trading of the company’s shares and stocks.

RISK AND PROPER PROCESS

The Senior Management personnel and/or employees are expected to keep the Directors fully informed about the effect of the policies adopted by the company from time to time and also regarding the risk connected with such policies.

Senior Management personnel and/or staff who have been entrusted with specific duties for ensuring compliance of statutory requirements including the rules and regulations shall forthwith comply with the same and keep the Board of directors fully informed about such compliance or non-compliance.

Senior Management personnel will from time to time provide or cause to be provided a true and faithful account of the company’s working and effectiveness of the procedures adopted by the company from time to time.

All Directors as well as Senior Management Executives and/or personnel are aware that while working with the company they have a social responsibility as well and therefore from time to time will devote such time for the upliftment of the downtrodden, poor and needy persons in the locality.

9. Markets classification

 

Over the last few years, there has been a remarkable shift at Shree: from a Production-centric to a customer-obsessed organisation.

• Challenges • Marketing presence• Markets • Market States

Markets classification

Markets States

Primary Rajasthan

Secondary Delhi, Punjab, JK, Haryana, Western U.P. and Uttaranchal

Tertiary Gujarat, M.P. and Central U.P.

10. Information Technology

SCL has embraced Information Technology in a big manner and made investments to establish strong IT infrastructure:

IT Policy & Quality Standards : SCL has clearly defined IT policy. Backup and Disaster Recovery Policy, SCL Internet/Network Access Policy and Business Continuity Plans have been endorsed and religiously implemented.

‘SUMriddhi’ - Shree Enterprise Resource Planning : The Shree ERP programme, christened ‘SUMriddhi’, was developed deploying Oracle 9i RDBMS and Developer 2000 platform. A comprehensive ERP program was designed to integrate all functional modules, namely Financial Accounting & Costing (FA), Material Management (MM), Personnel and Payroll (PP), Laboratory and Quality Control, Integrated Management System (IMS) and Raw Material Procurement (RMP) with the objective to make operations online. The company expects to implement ERP ‘live’ across the organisation in 2004-05.

Online operations of Sales and Distribution : The company successfully implemented the computerisation of its sales and distribution functions by integrating all branches/ dealers through a secured connectivity with the plant for online order processing. In the second phase, necessary enhancements will make the system work in a centralised manner using dedicated and secure Virtual Private Network (VPN) across its branch/ dealer network.

Shree’s IT Infrastructure : The company has a scalable, state-of-theart IT network infrastructure, with optic fibre cable-based gigabit backbone, high-end layer 3 switches, Cisco routers and IBM corporate-computing servers. Shree has a secure network across its corporate and site locations with e-trust firewall supplemented with intrusion detection system and Active Virus Defense Solution from Network Associates. The organisation is provided with the latest computing tools in hardware and software.

Shree’s corporate website : The company launched its contentexhaustive corporate website shreecement.com on 1 August 2003. The portal is dynamic, informative and userfriendly with a menu-driven interface. The website contains the latest information about the company with news flashes and a photo gallery. The website is e-commerceenabled, which provides access to customers on their latest account statement and vendors/ suppliers on order positions for the e-procurement program.

e-Procurement : Shree implemented an e-procurement programme to facilitate purchases through the reverse auction process to maximize price benefits and transperancy.

Paperless office : Shree is moving towards the ultimate goal of achieving a paperless office environment through a widespread use of e-mails and instant messaging for daily communication across all its offices. A program was undertaken for storing and catalouging the huge archive of blueprints of technical drawings in a digitised form for instant accessibility.

Raw material procurement : The entire raw material procurement operation was integrated with ‘SUMriddhi’ - Shree ERP, to increase efficiency and control.

Training : Shree is committed to enhance the IT skills of not only employees across all functions but their family members as well. As a result, training is an ongoing process and more than 200 personnel were imparted training across departments.

Online Knowledge management : Shree has launched a platform for sharing knowledge across the enterprise. A knowledge management tool was developed and implemented through which people across all levels can contribute and share achievements, domain expertise, social and cultural ideas. This also provides a ‘public folder’ for up-to-date information on the cement industry and the company.

Network Security : SCL network is protected by the high end e-Trust Firewall from Computer Associates and Network Associates Intrusion Detection System (IDS). SCL has implemented Network Associates Active Virus Defense for virus protection and SPAM control. All network resources are protected by adopting strong password policies. SCL has enforced three layer security for all data and information systems.

11. Progressive Management

Shree Cement supplemented its attractively low capital investment per tonne with one of the lowest manufacturing costs in the Indian cement industry.

Starting with 6 lac tonnes per annum of cement in 1985, the capacity was upgraded to 7.6 lac tonnes in 1993. Second plant with installed capacity of 1.24 million tonnes per annum was commissioned in 1997, in record time of 18 months, raising total capacity to 2.0 MTPA. Even during recession in the industry, it was possible for it to enhance capacity further to 2.6 MTPA due to its strategic location and better brand image and is the largest single location plant in North India.The company's installed capacity accounted for 15 percent of Rajsthan's total capacity in 2002-03 and 2.5 percent of Indian's production in 2002-03. Cement production increased 3.42% from 2.747 million tonnes in 2002-03 to 2.841 million tonnes in 2003-04.

Once again, the low cost was the result of scores of initiatives across all levels within the company. Some resulting in small savings. Some in big. But each primarily driven by the belief that what was being done could be done better.

Cooler fans were configured to a higher capacity so that heat could recuperate better. A better raw mix helped Shree reduce the proportion of high cost limestone and saved the company Rs 0.44 cr.

Achievements Capacity Utilization Cement and clinker production

Product mix-blended cement Kiln production Manufacturing cost Power consumption

12. SHREE CEMENT POLICY

 

13. RAS CEMENT PROJECT

Shree Cement Ltd. is setting up a new green field project at villages Ras, Tehsil Jaitarn, and District Pali of Rajasthan. The capacity of the plant is 3000 Ton Per Day of clinker production with an approximate investment of about Rs. 300 Crores.

The company has already engaged eminent consultant for the same and all commission the plant by August 2005, which is fifteen months from the date of first order placement i.e. May 2004.

KHD Humboldt Wedag AG-Germany & GEBR Pfeiffer AG-Germany would supply the main plant & machineries. The plant will be based on the latest technology available and maximum Automation would be done to keep the minimum manpower. The company is having sufficient mining lease at Ras to cater its production requirements for the upcoming 50 years.

The company is also expanding the power generation of its Captive Power Plant to meet the power requirement of the upcoming plantA dedicated project team is already working round the clock on the project to achieve the targeted competition by August 2005, and so far 25% of the work has been completed. As the project site is located in approximately to the potential market, it would provide a competitive edge logistically. Latest technology available is being adopted to achieve maximum automation to achieve optimum efficiency and manpower utilization.

The Cement Sustainability Initiative

Established in 1999, the Cement Sustainability Initiative is a coming

together of 10 leading international cement companies working in

close association with the World Business Council for Sustainable

Development to sustain development.

The WBCSD, established in 1991, is a coalition of 174 international

companies united by a shared commitment to sustainable

development through economic growth, ecological balance and

social progress. Its members are drawn from more than 30 countries

and 20 industrial sectors. It has a global network of 38 national and

regional business councils and partner organizations involving more

than 1000 business leaders globally.

"Shree Cement is the third Asian cement company and the first Indian cement company to join the CSI movement."

MARKETING

MARKETING STRATEGY

A business is an organ of society. So, is one valid definition of marketing of

business purpose to create a customer?

Essentially, creating a customer means identifying needs in the market place

finding out which needs the organization can profitably serve and develop an

offering to convert potential buyers into customers. Marketing managers are

responsible for most of the activities necessary to create the customers the

organization wants.

The activities include :

Identifying customer needs

Designing products and services that meet those needs

Communicating information about those products and services to prospective

buyers

Making the products or services available at times and places that meet

customer’s needs

Pricing the products to reflect costs, competition and customer’s ability to buy

Providing for necessary service and follow up to ensure customer satisfaction

after the purchase

Marketing is the performance of business activities that direct the flow of goods

and services from producer to customer of user. Marketing would no longer be

regarded as a supplementary activity to be performed after the production

process had been completed. The marketer would for instance now pay the lead

role in product planning. Marketing and selling would no longer be

synonymous.

DISTRIBUTION CHANNEL

For Jaipur District:-

Factory Handling Agent Whole seller Retailer Consumer.

Outside Jaipur District:-

Factory Sales Promoter Handling Agent Whole seller Retailer Consumer

SALES PROMOTION

SALES PROMOTION

In order to promote sale, the company organizes conferences, meetings etc.

with masons and dealers occasionally. Gift items are distributed to masons

and dealers in order to induce them to promote sale and discounts are also

given on higher purchases. Sales promotion schemes are not fixed it

depends upon sales target of sales (trade sale or direct sale) in case of direct

sales, stores in our dealer (wholesaler), retailer sales promotion.

Sales Promotion Strategies

I – Research Design

The issue for this part is the analyzing the market potential & sales

promotion. The strategy is to find out various problems related to the

distributors and dealers and strategize efficient solutions to eliminate these

problems and make the existing relationship better. It’s has been assumed here

that, if better facilities are given to them, than even if the channel in proper

way, they would continue working for the company. The methodology adapted

to understand their behaviour is survey based. The project started with

understanding of the complete distribution channel and consumer behaviour

towards company products. Distribution channel also pays significant roles in

the marketing. Substantial time was spent in understanding the working of

Distributors and Dealers. Next, questionnaire based interviews were done to

understand their behaviour and attitude towards the company. During the

process of interview, they came up with various problems along with possible

solutions to these problems. These are discussed in the later part of the project

report.

The most relevant and impersonal problems were selected and after analysis,

their solutions were worked upon. In all, many dealers, retailers & customers

were interviewed in the process. Although, the number of dealers and retailers

could have been increased, monotonousness of problems at later stags

prevented this.

The problems found and solutions worked upon, were discussed with people in

the marketing department and with respected guide, Mr. Narip Bazwa. The

quantitative and qualitative analysis of data presented in the later parts of this

report.

II – Scope of Study

1. To understand the distribution channel, customer behavior.2. Extend the channel, implementation and expansion.

III- Research Methodology

Preliminary Survey

Questionnaire Design

Interview BasedField Survey

Data Compilation+

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1- Preliminary Survey

In the preliminary Survey, met with dealers, retailers as a student, contractor & builder

and got the information about products. In the survey also met with masons and

consumers to know their perception about the products. Find it:-

1. How do they feel with the product?

2. They have knowledge of products or not.

2– Questionnaire Design

On the basis of survey, prepare a questionnaire which correlated with dealers, retailers,

masons and consumers problems and it also indicate present cement market, customer’s

parameters brand wise ranking.

3 – Field Survey

After preparing a questionnaire go for a descriptive field survey, after that filled up the

questionnaire by the dealers, retailers, masons and customers (different type) asked their

perception about Shree Cement. We also those dealers, retailers, masons and customers

who are not using Shree Cement & ask their perception ask questions like………

1. Why are they not using this cement?

2. According to them what types of drawback involved in it?

3. Do you know about the ROC and its impact to the wall?

4. According to them what we should add to improve the Shree sales?

And many other questions.

4 – Data Compilation and Data Analysis

On the basis of questionnaire and field survey, collected the data’s of the same

characteristics and analyze or the inferences. On the basis of analysis, make the graphs

(refer to appendix)

5 – Discussion With Guide And Marketing Department Personnel

On the of inferences, discuss with mentor about the report and got suggestions towards the

that what should do in the market to resolve the problem and what type of effort have to

get the better result.

6– Strategy Formulation

After taking the suggestions make the strategies to promote the company sales. The main

focus the distribution channel because it plays the significant role in the sales and how to

handle dealers and retailers that take interest in the product.

"ANALYSIS AND INTERPRETATION"

Q. 1. How many times you are in this field?

a) 0 to 5 years b) 5 to 10 years

c) 10 to 15 years d). More than 15 years.

Ans:-DURATION OF TIME IN CEMENT SELLING FIELD PERCENTAGE

0 to 5 years 40%

5 to 10 years 20%

10 to 15 years 30%

More than 15 years 10%

The above diagram shows that 40% distributor having the selling experience between 0

to 5 years and 20% are having 5 to 10 years experience of selling due to the boom in

cement sector more distributor are joining this sectors. It's a good sign for company.

Q. 2. Give are recommendation for Shree Cement?

a) Ist Choice b) not Ist Choice c) Never

Ans:-RECOMMENDATIONS APP. PERCENTAGE

1st Choice 27%

Not 1st Choice 51%

Never 22%

On the basis of data 27% retailer says, there Ist choice is Shree Cement and 51% says not

Ist Choice and remaining 22% says never they have been sold Shree Cement.

Q. 3. Which brand cement you are selling?

a. Ambuja b. Shree c. Binani d. Bangur

e. J. k. Lakshi f. Birla Plus g. Acc.

Ans:-

BRAND PERCENTAGE RATINGAmbuja 31% 1Shree 29% 2Binani 25% 3Bangur 11% 4J.K.Lakshmi 10% 5Birla Plus 2% 6ACC 2% 7

It varies from time to time and depends upon the market condition and quality of the

product. These are Shree, Ambuja and Binani and these are Shree Cement’s main

competitors in Jaipur City.

Q. 4. On the basis of demand and other factors. Which brand you are selling

most?

Ans:-

BRAND PERCENTAGEShree 30%Ambuja 26%Binani 18%J.K.Lakshmi 10%Bangur 08%Birla Plus 03%ACC 02%Other 04%

1. Mostly people one selling the shree brand because it was mostly demanded and

other factors

2. There was the Shree brand which was mostly demanded in market and it has

maximum market share.

Q.5. Which particular brand's Advertisement you like most?

Ans:-

BRAND PERCENTAGEAmbuja 24%Binani 20%Shree 18%J.K.Lakshmi 13%Bangur 11%Birla Plus 10%Other 04%

1. 24% People likes the advertisement of ambuja cement.

2. Shree cement was at third stage and 18 % people liked the advertisement of Shree

Cement.

Q.6. On the basis of services which brand you like very much?

Ans:-

BRAND PERCENTAGEAmbuja 29%Shree 27%Binani 18%Bangur 10%J.K.Lakshmi 05%Birla Plus 02%Other 05%

1. 29% respondents were satisfy with the services provided by the Ambuja Cement.2. Shree Cement respondents at second stage and 27% people responded it.

Q.7. According to price which brand is cheapest and which brand is costly?

Ans:-

BRAND PRICE (Rs.)Shree 203Bangur 204ACC 204J.K.Lakshmi 205Binani 26Ambuja 208

1. There are only Shree brand which is cheapest and the Ambuja was the most costly brand.

Q.8. Sales before meeting ?

We met different contractors and explained the advantages of red oxide cement. Not only contractors even we met some retailers also explained them why they should sale Shree Cement. I attended the meeting in Jaipur (Char Darwaja) that was conducted by marketing officers and I got the good experience of marketing.

Ans:-

BRAND SALESAmbuja 75%Binani 9%J.K.Lakshmi 5%Shree 4%Bangur 2%Other 5%

1. 75% people were selling the Ambuja brand before our meeting with them.

2. The share of Shree cement was at fourth stage in survey which have 4% market

sales.

Q.9. Sales Twenty day's after meeting?

Ans:-

BRAND SALES(%)Ambuja 50%Shree 30%Binani 8%J.K.Lakshmi 5%Bangur 2%Others 5%

1. After meeting the share of Shree cement has increased from 4% to 30% in 20

days.

2. Ambuja was at top most selling brand.

Orders:

In the process of meetings my team got the order of three hundred bags. This thing motivated my team.

10. Why did you choose to particular brand?

Ans:-

SURVEY PERCENTAGE

1. Price 60%

2. Quality 30%

3. Availability 10%

1. Most people are sensitive towards the quality of the product.

2. Next factor which affects the sales that is price the 30% peoples are gave

preference to price.

Q. 11. What kind of motivation you expect from company you associated with?

a). Discount b). more margin c). Credit time

Ans:-

EXPECT FROM COMPANY PERCENTAGE

Discount 30%

More margin 20%

Credit Time 50%

1. When asked about motivation and expectation factor provided from company

mostly or 50% people were in favor of credit limit given by company.

2. Next factor was discount on seasonal basis.

Q. 12. Is customer asking about Shree cement (Red Oxide)?

a). Yes b). No

Ans:-

Yes 70%

No 30%

At the time of survey the people of 70% were aware about the Shree Cement Red

Oxide brand.

Q. 13. Do you think shree cement is a ?

a). Successful Brand b). Unsuccessful Brand

Ans:-

THINKING ABOUT SREE CEMENT PERCENTAGE

Successful Brand 62%

Unsuccessful Brand 38%

1. 62% people said that Shree cement is a successful brand.

2. 38% people said that its not a successful brand.

Q. 14. What influenced your decision to purchase Shree Cement?

a). Price b). Brand Name c). Quality

d). Availability e). Performence f). Reliability

g). Advertisement

Ans:-OUR DICISION TO PERCHASE SHREE CEMENT PERCENTAGE

Price 10%

Brand Name 20%

Quality 40%

Availability 5%

Performance 5%

Reliability 10%

Advertisement 10%

1. 40% people told that they purchage the Shree Cement for its quality

2. 20% people purchase for its brand image.

3. Only 5% responded that they purchase it for its easy availability.

Q. 15. What do you think of the advertisement of Shree Cement?

a). Impressive b). Satisfactory c). Unsatisfactory

Ans:-

THINKING ABOUT ADVERTISEMENT PERCENTAGE

Impressive 31%

Satisfactory 29%

Unsatisfactory 40%

1. 40% people said that advertisement is unsatisfactory and they purchase it only for

its quality.

2. 31% people told that advertisement of Shree Cement is impressive.

QUERIES OF CUSTOMERS

1. The initial time of setting is high comparative to other cements.

2. Why the color of your cement is light?

3. The quantity of ash is too much.

4. It is not available in market.

5. Lack of advertisement.

6. After all these disadvantages why should we buy Shree Cement?

And we solved their queries, which gave a good experience of marketing.

Thank you.

SWOT

ANALYSIS

SWOT ANALYSIS:-

STRENGTHS WEAKNESSES Brand Equity

It saves iron from rusting.

It is launched through a already

established reputed brand.

Good advertisement.

Cost effectiveness

R&D.

Color is light

Initial setting time.

OPPORTUNITY THREATS It is launched first time In India.

No competitor of Red Oxide

Cement.

Specific purpose only for RCC.

Good response of people.

Use market potential.

Being a popular brand people are

still doubtful about it.

CONCLUSION

CONCLUTION

On the basis of survey it is conclude that number of distributor for Shree Cement

are less as compare to other brands.

The major competitors for Shree Cement is Ambuja cement in Jaipur.

On the basis of prices, Shree cement's price is less as compare to other brands so it

is strength for the company.

Before meeting with distributor the sales of Shree cement was around 4% but after

meeting it is increased up to 30% Shree cement's advertisement is less effective as

compare to Ambuja & Binani.

Due to the boom in Cement sector it is a good sign for a company so, company

should make favorable policies for new distributors so that cement market can be

more powerful.

RECOMMENDATIONS

Recommendations

The quality of Shree Cement has improved a fair over time. But this thing has not

really percolated to the customers and masons. Mason meets should be held

frequently to let the masons know about the strong points of Shree Cement.

There is still scope of improvement for Shree in qua;lity. The ROC develops black

spots due to presence of fly ash. This can be avoided by better griding and mixing

of cement with fly ash.

Some retailers were unhappy that Shree despite promising gifts to them on

meeting certain targets has refrained from fulfilling its promise and is now giving

cash in lieu of the promised gifts. It is at times not the gift but the pride of being

presented the gift in a large forum and thus the appreciation of work that motivated

a person to put in more effort.

The quality of the bags of Shree Cement is a big let down and is considered to be

of the most inferior quality. Proper action should be taken to replace the existing

sets of bags with new attractive bags.

Shree needs to concentrate on promotional activities. It should advertise its

product more by doing road shows, putting up hoardings etc. in short; we need to

paint the town red.

Company should appoint some efficient distributor & dealer in week areas.

Shree cement should look at the international market to fetch the profit because if

we see the per capita consumption in India is low (99 Kg) comparing to the other

countries. Even of being the India’s second largest producer of cement in the

world.

References

1. Shree Cement Ltd. (Marketing, Sales and Production Department)

2. Websites

www.shreecementltd.com

www.indiainfoline.com

www.cygnusindia.com

www.sski.co.in

www.kslindia.com

www.rathi.com

www.investsmartindia.com

www.bharatbook.com

3. Books & Gournals

Shree Cement Ltd. Annual Report

Effective Training- P.Nick Blanchard

Principles of Marketing- Kotlar Philip

Strategic Management – Thomson & Strickland

Marketing Research- Naresh K. Malhotra

BIBLIOGRAPHY

Marketing Management : Philip Kotler

Research Methodology : C.R. Kothari

Marketing Research : Rajendra Nargundkar

ANNEXURE

APPENDICES

QUESTIONAIRE:-

Profession :

Name of outlet :

Place :

Period :

Q. 1. How many times you are in this field?

a) 0 to 5 years

b) 5 to 10 years

c) 10 to 15 years

d). More than 15 years.

ANS :

Q. 2. Give are recommendation for Shree Cement?

a) Ist Choice

b) not Ist Choice

c) Never

ANS :

Q. 3. Which brand cement you are selling?

a. Ambuja

b. Shree

c. Binani

d. Bangur

e. J. k. Lakshi

f. Birla Plus

g. Acc.

Q.4. On the basis of demand and other factors. Which brand you are selling most?

ANS :

Q.5. Which particular brand's Advertisement you like most?

ANS :

BRAND PERCENTAGE

Q.6. On the basis of services which brand you like very much?

ANS :

Q.7. According to price which brand is cheapest and which brand is costly?

ANS :

Q.8. Sales before meeting ?

ANS :

Q.9. Sales Twenty day's after meeting?

ANS :

Q. 10. Why did you choose to particular brand?

ANS :

. Q. 11. What kind of motivation you expect from company you associated with?

a). Discount

b). more margin

c). Credit time

ANS :

Q. 12. Is customer asking about Shree cement (Red Oxide)?

a). Yes

b). No

ANS :

Q. 13. Do you think shree cement is a ?

a). Successful Brand

b). Unsuccessful Brand

ANS :

Q. 14. What influenced your decision to purchase Shree Cement?

a). Price

b). Brand Name

c). Quality

d). Availability

e). Performence

f). Reliability

g). Advertisement

ANS :

.

Q. 15. What do you think of the advertisement of Shree Cement?

a). Impressive

b). Satisfactory

c). Unsatisfactory

ANS :