training report on ultratech cement
TRANSCRIPT
A
PROJECT REPORT
ON
ANALYSIS OF DEALERS ATTITUDE TOWARDS ULTRATECH BRAND IN CHARKHI DADRI & BHIWANI
SUBMITTED BY: EXTERNAL GUIDE:
DEEPAK BANSAL MR. ASHOK NAWAL
ROLL NO: - 10035 (MANAGER OF FINANCE)
SUBMITTED TO:
Kedarnath Aggarwal Institute of Management (Charkhi Dadri)
(Affiliated to Maharshi Dayanand University, Rohtak)PREFACE
Someone has rightly said that practical experience is far better and closer to
the real world than mere theoretical exposure. The practical experience helps
the student to view the real business world closely, which in turn widely
influences their perception and arguments their understanding of the real
situation.
The phenomenon of creation is a long process requiring time, energy and
dedication well as skill and experience of those people engaged in the task,
ultimately in the outcome a the form of embodiment of the creator’s vision.
Research work constitutes the backbone of any management education
program. A management student has to do research work quite frequently
during her entire span.
MBA is a stepping stone to management career in order to reach practical and
concrete results. Our contemporary lives have been influenced by the
advancement and growth in the industry. Wherein the ultra-modern and
advanced lifestyles of the 21st century are thinkable. This study aims to explore
all such phases.
DEEPAK BANSAL
ACKOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of any
task is incomplete without mentioning the people who made it possible, whose
constant guidance crowned my effort with success. Being a part of this project
has certainly been a unique and a very productive experience on my part.
I would like to begin with a special note of gratitude and heartfelt thanks to my
Mentor Mr. ASHOK NAWAL (Finance Manager) for making all kinds of
arrangements to carry the project successfully and for guiding and helping me
to solve all kinds of queries regarding the project work. His systematic way of
working and incomparable guidance has inspired the pace of the project to a
great extent.
I am also very grateful to Mr. SUMAN SAHA (HR Manager, ZONAL HEAD)
for giving me the opportunity to do my summer internship project from the
regional office of GRASIM INDUSTRIES LIMITED at Gurgaon (cement
business).
I am thankful to the accounts department, Mr. ATUL JAIN, Mr. VIJAY
MITTAL and other staff members for their valuable guidance, time and
suggestions during the period of my training.
And last but not the least I am thankful to all the other departments and all its
members for helping me throughout my work in my project.
DEEPAK BANSAL
DECLARATION
I DEEPAK BANSAL, Student of KEDARNATH AGGGARWAL INSTITUTE
OF MANAGEMENT (Maharshi Dayanand University, Rohtak) hereby declare
that the summer training project on ‘ANALYSIS OF DEALERS ATTITUDE
TOWARDS ULTRATECH BRAND IN CHARKHI DADRI & BHIWANI’ under
the guidance of MR. ASHOK NAWAL is my original work and has not been
submitted by any other person.
I also declare that I have done my work sincerely and accurately even then if
any mistake or error had kept in it, I request the readers to point out these
errors and guide me to remove these errors in future.
(DEEPAK BANSAL)
Date:
Place:
INDEX
S.No.Topic
Page No.
1 Preface 22 Acknowledgement 33 Declaration 4
Ch.no. Contents 1 Executive Summary 72 CEMENT 8--12
2 (a) Introduction to cement 82 (b) Manufacturing Process of cement 9--112 (c) Cement Production In India 12
3 CEMENT INDUSTRY 13--203 (a) Introduction of Cement Industries 133 (b) History of cement Industries 143 (c) Facts of India Cement Industries 15--163 (d) Current Scenario of Cement Industry in India 173 (e) Growth in Production of Cement in India 183 (f) Top 10 Cement Industry in India 193 (g) Highlights of India Cement Industries 20
4 GRASIM INDUSTRIES LIMITED 21--344 (a) Introduction 214 (b) Characteristics of Grasim Industries 224 (c) Mission of Grasim Industries 234 (d) Values of Grasim Industries 244 (e) Main Product of Grasim Industries 254 (f) Main Units of Grasim Industries 26--274 (g) Share Price of The Group 28--294 (h) Milestones ofGrasim Industries Limited 30
4 (i)Acqusitions and Restructuring of Grasim Industries limited 31
4 (j) Recent Accolades 32
4 (k)Grasim Industries Limited is Seprating Its Cement Business 33
4 (l) Plant Location 345 ULTRA TECH CEMENT 35--43
5 (a) Introduction of UltraTech Cement 35--365 (b) Swot Analysis of Ultra Tech Cement 375 (c) Management Team of Ultra Tech Cement 385 (d) Achievements of Ultra Tech Cement 39--425 (e) The Ultra Tech Cement Advantage 43
6 FREIGHT ECONOMIC COST 44--556 (a) Introduction to Freight 446 (b) Economic cost 45--466 (c) Demand for freight transportation 476 (d) Transportation pricing 486 (e) The Economic Costs of Freight Transportation 496 (f) Advance Logistic 506 (g) Changes in Logistics Network Infrastructure 51--546 (h) The New Supply Chain 55
7 RESEARCH METHOLOGY 567 (a) Research Methology 567 (b) District and Taluka in Haryana Region 577 (c) Source of Manufature of UltraTech Cement for Haryana 587 (d) Main Economic Source of Supply 587 (e) Depot and Source of Primary Supply 597 (f) Comparative Landed Cost for Each Location 60--66
8 SUMMARY 679 FINDINGS 6810 BIBLIOGRAPHY 69
EXECUTIVE SUMMARY
The project gives a broad outline on dealers attitude towards
ulatratech brand in Charkhi dadri & Bhiwani From the research
I came across several interesting results about the dealer and
the retailer’s behaviour and response towards increment in
sales of any particular brand, and then steps are to be taken to
matching the expectation in case of UltraTech cement. From
the analysis we are able to make aware about the fact that the
role of dealers are impressive in hiking the sales of any
particular brand by influencing the customer.
I have prepared questionnaire Then I started my survey by
visiting all of them area wise and recorded their feed back
according to the question asked to them from my
questionnaire. Then I summarize all the data collected and
make comparative charts and diagrams to present my findings.
From this project I got a lot exposure to cement market in
Charkhi Dadri & Bhiwani. l and got the insight of the
relationship between manufacturer, retailers, and customers.
During the work I have interacted some high profile executives
of a big giant market player-ADTYA BIRLA GROUP. It gives me
a lot of exposure to the high level corporate world. Meeting
1
with the respondents also increase my potential and my over
all view about the consumer market.
1.1Literature Review
India is the 2nd largest cement producer in world after china .Right from laying concrete bricks of economy to waving fly over’s cement industry has shown and shows a great future. The overall outlook for the industry shows significant growth on the back of robust demand from housing construction, Phase-II of NHDP (National Highway Development Project) and other infrastructure development projects. Domestic demand for cement has been increasing at a fast pace in India. Cement consumption in India is forecasted to grow by over 22% by 20012-13 from 2009-10.Among the states, Maharashtra has the highest share in consumption at 12.18%,followed by Uttar Pradesh, In production terms, Andhra Pradesh is leading with 14.72% of total production followed by Rajasthan. Cement production grew at the rate of 9.1 per cent during 2006-07 over the previous fiscal's total production of 147.8 mt. (million tons). Due to rising demand of cement the sales volume of cement companies are also increasing & companies reporting higher production, higher sales and higher profits. The net profit growth rate of cement firms was 85%. Cement industry has contributed around 8% to the economic development of India.
Outsiders (foreign players) eyeing India as a major market to invest in the form of either merger or FDI (Foreign Direct Investment). Cement industry has a long way to go as Indian economy is poised to grow because of being on verge of development.
Despite the growth of Indian cement industry India lags behind the per capita production. Supply for cement is expected to remain tight which, in turn, will push up prices of cement by more than 50%. The most important factor for better prices is consolidation of the industry. It has just begun and we will see more consolidation in the
coming years. Other budget measures such as cut in import duty from 12.5 per cent to nil etc. are all intended to cut costs and boost availability of cement.
Sadly the adverse effects of global slowdown have not speared this industry too. Demand is sluggish, the government is keeping an eagle eye on prices, domestic coal and pet coke, prices have increased sharply and utilizations rates are down. The numbers coming out are a reflection of grim times. ACC the country’s largest cement company that’s controlled by Swiss giant HOLCIM, registered 2% fall in august sales. The biggest fall since Feb. 2007. Production fell by 5%. To stand against the problematic situation, government as well as cement industry has taken some steps. Companies are focusing on cost of transportation.
One of the strategy is to decrease dependence on road & opt for sea logistics as that can cut transportation cost by 30- 50 %. Some plants are adopting futuristic plan such as setting up captive power plant, moving closer to the customers by creating clicker, crushing, and capacity in key markets, to be more customer centric to generate better revenue. India should push for stricter regulations of market place as to control the prices of big companies and prevent them from forming cartels and exchanging information. To fight with the high inflation, government wants to import more cement from Pakistan .However cement prices are not very much high as other items but still they are increasing. And the reason of high price is surging cost of raw material and transportation cost. Apart from this government also discussed with cement industry not to have increase in prizes and keep consumer interest in mind.
Now the question arise in front of the government is whether the demand by the government is possible to increase through expenditure on infrastructure or not according to the current state of economy when so many crises are going on or how the government allocation of US$ 3.23 billion for the National Highway Development, Project will keep the demand for cement alive? And to what extent the prices of cement should be increase so that consumer can’t affect.
1.2Need of the study:• The Cement industry is one of the largest and most exciting
sectors to be working in today. It is a rapidly changing environment where many advances have taken place over the past 20 years. Furthermore, it will continue to develop and evolve at an ever- increasing pace over the next decade. New technologies and exciting new discoveries have driven this evolution.
• This is one of the research done for fulfillment of my study programme of Post graduate diploma in Management.
1.3Objectives of the Project
The objective can be achieved with respect to the following parameters.
• To know Dealers attitude towards Ultratech brands of cement
Bhiwani & Charkhi Dadri market.
• To find out the market share of different brands in cement
market of Bhiwani & charkha Dadri.
• To know the thoughts and behavior of consumers towards
UTCL in Bhiwani & Charkhi Dadri Market.
• For conducting a comparative study of UTCL with respect to
other brands in Bhiwani & Charkhi Dadri.
• To understand the retail practices of UTCL in Bhiwani &
Charkhi dadrimarket.
• To find out the dealers and sub dealers perception towards
UTCL.
• To Know the retailers services towards consumers in Bhiwani
& Charkhi Dadri market.
• To find out the growth prospective of UTCL including the
Behavior of nonconventional retailers or the potential retailers
of cement market in Bhiwani area.
1.4Research Hypothesis
Research Hypothesis is a tentative statement (“educated guess”) about the expected relationship between two or more variables.
From this study what I wish to investigate is stated below.• To know dealers attitude towards Ultratech brands in Bhiwani
& Charkhi Dadri market..
• To find out the market share of different brands in cement
market of Bhiwani & charkha Dadri.
• To know the thoughts and behavior of consumers towards
UTCL in Bhiwani & Charkhi Dadri Market.
• For conducting a comparative study of UTCL with respect to
other brands in Bhiwani & Charkhi Dadri.
• To understand the retail practices of UTCL in Bhiwani &
Charkhi dadrimarket.
• To find out the dealers and sub dealers perception towards
UTCL.
• To Know the retailers services towards consumers in Bhiwani
& Charkhi Dadri market.
• To find out the growth prospective of UTCL including the
Behavior of nonconventional retailers or the potential retailers
of cement market in Bhiwani area.
1.6 Scope of the Study
Though this research has been made for fulfillment of my course structure of Post graduate diploma in Management, even I can say from this study I have learnt a lot and the fulfillment of below said matters.
• I have learnt a lot about the Cement selling details, about promotion of cement, about distribution of cement, about pricing of cement, about the cement market etc.
• The learning can give me a exposure in a cement company or any FMCG or FMCD or any Pharmaceutical company, as a fresher.
• This research is fully made on Primary data Collection, it’s shows that I can handle pressure & it’s a added advantage to grab a good company after completion of my course.
• With the help of this research, I can easily conduct any research if after getting a job my company give me any responsibility to conduct a research programme.
1
INTRODUCTION TO CEMENT
In the most general sense of the word, a cement is a binder, a substance which sets and
hardens independently, and can bind other materials together. The word "cement" traces to
the Romans, who used the term "opus caementicium" to describe masonry which resembled
concrete and was made from crushed rock with burnt lime as binder. The volcanic ash and
pulverized brick additives which were added to the burnt lime to obtain a hydraulic binder
were later referred to as cementum, cimentum, cäment and cement.
Cement used in construction is characterized as hydraulic or non-hydraulic. Hydraulic
cements (e.g. Portland cement) harden because of chemical reactions that do not involve
"drying out"; they can harden even underwater or when constantly exposed to wet weather.
The chemical reaction that results when the dry cement powder is mixed with water produces
hydrates that are not water-soluble. Non-hydraulic cements (e.g. lime and gypsum plaster)
must be kept dry in order to gain strength.
The most important use of cement is the production of mortar and concrete—the bonding of
natural or artificial aggregates to form a strong building material which is durable in the
face of normal environmental effects.
Concrete should not be confused with cement because the term cement refers only to the dry
powder substance used to bind the aggregate materials of concrete. Upon the addition of
water and/or additives the cement mixture is referred to as concrete, especially if aggregates
have been added.
2
MANUFACTURING PROCESS OF CEMENT
PROCEDURE
The main raw materials used in the cement manufacturing process are limestone, sand,
shale, clay, and iron ore. The main material, limestone, is usually mined on site while the
other minor materials may be mined either on site or in nearby quarries. Another source of
raw materials is industrial by-products. The use of by-product materials to replace natural
raw materials is a key element in achieving sustainable development.
Raw Material Preparation
Mining of limestone requires the use of drilling and blasting techniques. The blasting
techniques use the latest technology to insure vibration, dust, and noise emissions are kept at
a minimum. Blasting produces materials in a wide range of sizes from approximately 1.5
meters in diameter to small particles less than a few millimeters in diameter. Material is
loaded at the blasting face into trucks for transportation to the crushing plant. Through a
series of crushers and screens, the limestone is reduced to a size less than 100 mm and stored
until required. Depending on size, the minor materials (sand, shale, clay, and iron ore) may
or may not be crushed before being stored in separate areas until required.
Raw Grinding
In the wet process, each raw material is proportioned to meet a desired chemical
composition and fed to a rotating ball mill with water. The raw materials are ground to a
size where the majority of the materials are less than 75 microns. Materials exiting the mill
are called "slurry" and have flow ability characteristics. This slurry is pumped to blending
tanks and homogenized to insure the chemical composition of the slurry is correct.
Following the homogenization process, the slurry is stored in tanks until required. In the dry
process, each raw material is proportioned to meet a desired chemical composition and fed
to either a rotating ball mill or vertical roller mill. The raw materials are dried with waste
process gases and ground to a size where the majority of the materials are less than 75
microns. The dry materials exiting either type of mill are called "kiln feed". The kiln feed is
pneumatically blended to insure the chemical composition of the kiln feed is well
homogenized and then stored in silos until required.
Pyroprocessing
Whether the process is wet or dry, the same chemical reactions take place. Basic chemical
reactions are: evaporating all moisture, calcimine the limestone to produce free calcium
oxide, and reacting the calcium oxide with the minor materials (sand, shale, clay, and iron).
This results in a final black, nodular product known as "clinker" which has the desired
hydraulic properties. In the wet process, the slurry is fed to a rotary kiln, which can be from
3.0 m to 5.0 m in diameter and from 120.0 m to 165.0 m in length. The rotary kiln is made of
steel and lined with special refractory materials to protect it from the high process
temperatures. Process temperatures can reach as high as 1450oC during the clinker making
process. In the dry process, kiln feed is fed to a preheated tower, which can be as high as
150.0 meters.
Material from the preheated tower is discharged to a rotary kiln with can have the same
diameter as a wet process kiln but the length is much shorter at approximately 45.0 m. The
preheated tower and rotary kiln are made of steel and lined with special refractory materials
to protect it from the high process temperatures. Regardless of the process, the rotary kiln is
fired with an intense flame, produced by burning coal, coke, oil, gas or waste fuels.
Preheated towers can be equipped with firing as well.
The rotary kiln discharges the red-hot clinker under the intense flame into a clinker cooler.
The clinker cooler recovers heat from the clinker and returns the heat to the pyroprocessing
system thus reducing fuel consumption and improving energy efficiency. Clinker leaving the
clinker cooler is at a temperature conducive to being handled on standard conveying
equipment.
Finish Grinding and Distribution
The black, nodular clinker is stored on site in silos or clinker domes until needed for
cement production. Clinker, gypsum, and other process additions are ground together
in ball mills to form the final cement products. Fineness of the final products, amount
of gypsum added, and the amount of process additions added are all varied to develop
a desired performance in each of the final cement products.
Each cement product is stored in an individual bulk silo until needed by the customer.
Bulk cement can be distributed in bulk by truck, rail, or water depending on the
customer's needs. Cement can also be packaged with or without color addition and
distributed by truck or rail.
INTRODUCTION OF CEMENT INDUSTRY
In the beginning, man lived in thatched houses but later as his horizon of knowledge
expanded he could produce a wonderful material for construction known as cement. In the
year 1756 Jhon Smeaton, an English engineer, erected eddy stone lighthouse in English
Channel that paved the start of the industry. Various types of cement, roman cement and
pozzolona cement also came into existence. India too contributed to the production. In 1918
the Indian cement industry had an overall capacity of 84000 tones per year.
At the time of independence there were 23 factories in all with a capacity of 1.5 million tones
per annum. The major costs incurred come under the head of transport and energy
consumption consisting of power and fuel. The cost of production per tone of cement usually
ranges between Rs.120 to 1399. The profitability will depend upon operational and logistical
efficiency. A good image will help to command a good premium. This is evidenced by the
premium brands like Shree Ultra Cement, Ultratech Cement, Ambuja Cement and Birla
Chetak Samrat Cement.
Some multinational companies like Lafarge and Blue Circle Victor have recently
evinced interest in shifting more of their business towards Asis, especially to India. In fact,
One deal of take-over has already materialized in which Lafarge took over the cement
business of TISCO and influencing factors may make the situation a trend. It seems imminent
that more of them would take place in the time to follow, since acquisition is always a more
preferred route then expansion/green field installation.
According to survey by ICRA top 10 companies account for 59% of the cement
production in the country. The cement industry is dominated by private sector according for
915 of the capacity and 9% of the production, while public sector accounts for the rest. This
has put the cement organization is shambles due to privatization of public sector and
upcoming production.
3
HISTORY OF CEMENT INDUSTRIES
The history of cement is the voyage of civilization from primitive caves of prehistoric times to
the skyscraper of the modern age. It is said that the use of cement is old as the knowledge of
fire to man. Egyptians utilized gypsum plaster as cementing material as early as 3000BC,
building monuments. However, it was in the 1824, roughly a period of 60-80 years after the
discovery of hydraulic properties of limestone, Joseph Aspdin patented his product, which
was called “Portland Cement”.
The plants manufacturing Portland cement out side England were commissioned in Belgium
and Germany in 1855. The interest that evoked in the technology of cement resulted in the
development of rotary kilns in 1886.
Modern cement is the outcome of the combined researches and development efforts of
chemists, technologists & architects as well. The cement technology is an offshoot of the
overall development in other industries, technology, constructional activities and knowledge
aided by the availability of raw material.
Facts of Indian Cement Industry
Facts of Indian Cement Industry (1982 – 2009)
• The Industry recorded an exponential growth
with the introduction of partial decontrol in
1982 culminating in total decontrol in 1989.
• The capacity, which was 29 Mn.t in 1981-82,
rose to 219 Mn.t at the end of FY09.
• While it took 8 decades to reach the 1st 100
Mn.t capacity, the 2nd 100 Mn.t was added in
just 10 years.
• India ranks second in world cement producing
countries.
• The Industry has been facing a chronic
problem of insufficient availability of the main
fuel coal - driving the manufacturers to resort
to use of alternatives at steep cost.
• Taxes and Government levies on cement are the highest compared to countries in Asia Pacific
Region.
• Cement Industry, which was branded as the highest polluter of environment, now meets the pollution
standards, and is no longer a polluter today.
• Contributes to environmental cleanliness by consuming hazardous wastes like Fly Ash (around 30
Mn.t) from Thermal Power Plants and the entire 8 Mn.t of Slag produced by Steel manufacturing
units.
• As a part of Corporate Social Responsibility (CSR), the Cement Industry employs around one lakh
people and takes care of the social needs not only of the employees but also adopts several villages
around the factories providing free drinking water, electricity, medical and educational facilities.
• Cement Industry produces a variety of cement to suit a host of applications matching the world's
best in quality.
• Exports Cement/Clinker to around 30 countries across the globe and earns precious Foreign
Exchange.
• The core sector Cement Industry deserves due support from the Government through exemption from
imposition of high levies and duties, making available various inputs like fuel, power, transport etc.
at reasonable prices and in required quantities to help its growth and improve competitively both in
domestic and international markets.
TOP 10 CEMENT INDUSTRIES IN INDIA
3(e) Highlights of Indian Cement Industry
as on 31st March, 2009
Large Plants
Companies (Members) (Nos.)
46
Cement Plants (Nos.)
148
Installed Capacity (Mn. t.)
219.17
Cement Production (Mn. t.) 2008-09
181.61
Plants with Capacity of Million tonnes and above (Nos.)
95
Manpower Employed (Nos.) Approx.
1,40,000
Turnover in 2008 (Mn. US$) around
18,500
Mini & White Cement Plants
Cement Plants (Nos.) Approx.
365
Installed Capacity (Mn. t.)
11.10 (P)
Cement Production (Mn. t.) 2008-09
6.00 (P)
GRASIM INDUSTRIES LIMITED4
AN INTRODUCTION
Grasim was incorporated on 25 August1947, exactly 10 days after India achieved
independence. Grasim is more than an Industrial enterprise. It is the symbol of INDIA’S
surge for economic and industrial liberation. Grasim is world largest producer of viscose
staple fiber and edible oil and textile production.
Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranks among
India's largest private sector companies, with consolidated net turnover of Rs.202 billion and
a consolidated net profit of Rs.27.6 billion (FY2010). Starting as a textiles manufacturer in
1948, today Grasim's businesses comprise viscose staple fiber (VSF), cement, chemicals and
textiles. Its core businesses are VSF and cement, which contribute to over 90 per cent of its
revenues and operating profits.
The Aditya Birla Group is the world’s largest producer of VSF, commanding a 21 per cent
global market share. Grasim, with an aggregate capacity of 333,975 tpa has a global market
share of 10 per cent. It is also the second largest producer of caustic soda (which is used in
the production of VSF) in India.
In cement, Grasim along with its subsidiary UltraTech Cement Ltd. has a capacity of 52
million tpa as on 30 June 2009 and is a leading cement player in India. In July 2004, Grasim
acquired a majority stake and management control in UltraTech Cement Limited. One of the
largest of its kind in the cement sector, this acquisition catapulted the Aditya Birla Group to
the top of the league in India. Cement business of Grasim industries has been demerged and
has been formed into a new company named Samurddhi cement. It will come into effect from
18 may 2010.
CHARACTERISTICS OF GRASIM INDUSTRIES
1. It is one of the largest private sector companies in the Country.
2. It has a solid financial base.
3. A group of units producing various products.
4. The company is the domestic market leader & amongst the top two producers in the world.
5. Accent is on accelerated growth and in each of its major businesses its emphasis is on
scaling up capacities and services. (Greenfield and Brownfield).
6. India's largest and lowest-cost aluminium producer.
7. Largest producer of white cement in India.
8. Fastest-growing copper company in Asia.
9. World leader in viscose staple fibre.
10. Leading private sector mutual fund and insurance company.
11. Successful forays into software and BPO.
12. World's largest single-location palm oil refinery.
13. World's third largest producer of insulators.
MISSION OF GRASIM INDUSTRIES
1) Education for all: to secure them a brighter future.
2) Sustainable Livelihood: through training and education for skill development.
3) Health care and Hygienic living conditions.
4) Family Welfare.
5) Restoring self esteem of the physically handicapped.
6) Empowerment of Women.
7) Community Development:holistic development of the community including infrastructure.
8) Espousal of social causes.
VALUES
People contribute when they relate to an organization and they relate, when they understand
the organization. People understand an organization through its values, by experiencing the
culture that values create and by using the systems and processes that values define. In large
organizations, such share understanding can not be created through leadership of
individuals alone; it requires leadership of principles, of beliefs, of conviction.
Integrity
Commitment
Passion
Seamlessness
Speed
These together constitute what we call our “Values”.
Integrity :- Acting and taking decisions in a manner that these are fair, honest, following
the highest standards of professionalism and are also perceived to be so. Integrity for us
means not only financial and intellectual integrity, but in all other forms as are commonly
understood.
Commitment: - On the foundation of integrity, doing whatever it takes to deliver values to
all stakeholders. In the process, taking ownership for our own decisions and actions, those of
our team and that part of the organization that we are responsible for
Passion:- A missionary zeal arising out of emotional engagement with the organization that
makes work joyful and inspires each one to give his or her best.
Seamlessness:- Thinking and working together across functional silos, hierarchies,
businesses and geographies.
Speed:- Responding to internal and external customers with a sense of urgency.
MAIN PRODUCTS OF GRASIM INDUSTRY
1. Viscose staple fibre.
2. Rayon grade pulp
3. Cement
4. Textiles
5. Sponge Iron
6. Chemicals
1. Viscose staple fibre:-
The Aditya Birla Group is the world's largest producer of VSF, commanding a 24 percent
global market share. The company meets over 98 per cent of India's domestic VSF
requirements.
2. Cement:-
The Aditya Birla Group is the 11th largest cement producer in the world and the seventh
largest in Asia.
3. Sponge iron:-
It is the largest merchant producer of sponge iron in India.
4. Chemicals:-
Grasim has India's second largest caustic soda unit.
5. Textiles:-
Its premium brands, the 'Grasim' and 'Graviera' range of fabrics, have distinctively
positioned themselves as 'the power of fashion'.All of Grasim's units have earned ISO 9002
and 14001 certifications.Product quality, innovation and eco-friendliness are a hallmark of
all the company's divisions.
MAIN UNITS OF GRASIM INDUSTRIES
Viscose Staple Fibre Nagda (M.P.)
Rayon Grade Pulp Mavoor (Kerela)
Hariar Poly Fibres Karnataka
Rayon Grade Caustic Soda Nagda (M.P.)
Vikram Cement Jawad (M.P.)
Vikram Iron &Steel (Sponge Iron) Maharashtra.
Grasim cement Raipur (M.P.)
Graviera & Grasim Suiting Bhiwani (Hry.)
Elegent Spinners Bhiwani (Hry.)
Vikram Ispat Raigarh (M.P.)
Aditya Cement Shambhupura
Birla Telecom Ltd. & Birla Communication Ltd. Mumbai
Ultra Tech Cement South Hyderabad.
Grasim-UltraTech Cemco
Grasim's product profile includes viscose staple fiber (VSF), grey cement, white cement,
sponge iron, chemicals and textiles. With the acquisition of UltraTech, L&T's cement
division in early 2004, Grasim has now become the world's seventh largest cement producer
with a combined capacity of 31 million tones. Grasim (with UltraTech) held a market share
of around 21 percent in 2005-06. It has plants in Madhya Pradesh, Chattisgarh, Punjab,
Rajasthan, Tamil Nadu and Gujarat among others.
The company plans to invest over US$ 9 million in the next two years to augment capacity of
its cement and fiber business. Its also plans to focus on its international ventures, ramping up
the capacity of Alexandra Carbon Black in Egypt to 1,70,000 tone per annum (from 1,20,000
tpa) and raising the capacity of the carbon black plant in China from 12,000 tpa to 60,000
tpa
MILESTONES OF GRASIM INDUSTRIES LIMITED
2009
Vikram Cement and Aditya Cement wins the Federation of Indian Mineral and Industries'
"Social Awareness Award for the year 2008-09".
Grasim's plants Vikram Cement (Khor, Madhya Pradesh) and Aditya Cement
(Sambhupura, Rajasthan), have won the TERI (The Energy and Resources Institute) CSR
Award for their sterling work in 37 villages among 12,550 families in the area of
healthcare.
Mr. Ratan Shah, the Group Executive President and Chief Marketing Officer, Cement and
Mr. R. M. Gupta, Sr. Executive President, Vikram Cement and Aditya Cement, received the
Award at the hands of the honourable President of India, Mrs. Pratibha Patil on 5 June at
Vigyan Bhavan, New Delhi.
2007
Eighteen ready-mix concrete plants commissioned.
2004
The Staple Fibre Division and Engineering & Development Division of Grasim, Nagda
receives SA 8000:2001 certification from SAI in recognition of its social accountability
initiatives.
2003
Grasim's Chemical Division receives the SA 8000 (Social Accountability) and OHSAS
18001 certifications.
2002
VSF Research & Application Centre set up at Kharach in Gujarat.
2001
Four Ready-Mix Concrete plants commissioned with an aggregate capacity of one
million cubic meters.
ACQUSITIONS AND RESTRUCTURING OF GRASIM
INDUSTRIES LIMITED:
2007
Grasim divests Shree Digvijay Cement Company Limited.
Textile units at Bhiwani transferred to a subsidiary, Grasim Bhiwani Textiles Limited.
2006
Formed joint venture company, Birla Jingwei Fibre Company Ltd. and acquired VSF
plant in China.
2005
Acquired St. Anne Nackawic Pulp Mill, Canada with Tembec Inc.
2004
Completion of the implementation process to de-merge the cement business of L&T and
completion of open offer by Grasim, with the latter acquiring controlling stake in the
newly formed company UltraTech.
UltraTech Board reconstituted with Mr Kumar Mangalam Birla taking over as
Chairman.
2003
The board of engineering major, Larsen & Toubro Ltd (L&T) decides to de-merge its
cement business into a separate cement company, UltraTech CemCo Ltd., now UltraTech
Cement Ltd. .
PLANT LOCATIONS
ULTRA TECH CEMENT
INTRODUCTION
UltraTech Cement Limited has an annual capacity of 23.10 million tonnes. It manufactures
and markets ordinary portland cement, portland blast furnace slag cement and Portland
pozzalana cement. It also manufactures ready mix concrete.The company has five integrated
plants, six grinding units and three terminals – two in India and one in Sri Lanka. UltraTech
Cement is the country’s largest exporter of cement clinker. The export markets span
countries around the Indian Ocean, Africa, Europe and the Middle East. The company's
subsidiaries are Dakshin Cement Limited, UltraTech Cement Lanka (Pvt.) Ltd. and
UltraTech Cement Middle East Investments Limited.
UltraTech is India's largest exporter of cement clinker. The company's production facilities
are spread across five integrated plants, five grinding units, and three terminals — two in
India and one in Sri Lanka. All the plants have ISO 9001 certification, and all but one have
ISO 14001 certification. While two of the plants have already received OHSAS 18001
certification, the process is underway for the remaining three. The company exports over 2.5
million tonnes per annum, which is about 30 per cent of the country's total exports. The
export market comprises of countries around the Indian Ocean, Africa, Europe and the
Middle East. Export is a thrust area in the company's strategy for growth.
UltraTech's products include Ordinary Portland cement, Portland Pozzolana cement and
Portland blast furnace slag cement.
• Ordinary Portland cement
• Portland blast furnace slag cement
• Portland Pozzolana cement
5
• Cement to European and Sri Lankan norms
Ordinary Portland cement
Ordinary portland cement is the most commonly used cement for a wide range of
applications. These applications cover dry-lean mixes, general-purpose ready-mixes, and
even high strength pre-cast and pre-stressed concrete.
Portland blast furnace slag cement
Portland blast-furnace slag cement contains up to 70 per cent of finely ground, granulated
blast-furnace slag, a nonmetallic product consisting essentially of silicates and alumino-
silicates of calcium. Slag brings with it the advantage of the energy invested in the slag
making. Grinding slag for cement replacement takes only 25 per cent of the energy needed to
manufacture portland cement. Using slag cement to replace a portion of portland cement in
a concrete mixture is a useful method to make concrete better and more consistent. Portland
blast-furnace slag cement has a lighter colour, better concrete workability, easier
finishability, higher compressive and flexural strength, lower permeability, improved
resistance to aggressive chemicals and more consistent plastic and hardened consistency.
Portland Pozzolana cement
Portland pozzolana cement is ordinary portland cement blended with pozzolanic materials
(power-station fly ash, burnt clays, ash from burnt plant material or silicious earths), either
together or separately. Portland clinker is ground with gypsum and pozzolanic materials
which, though they do not have cementing properties in themselves, combine chemically with
portland cement in the presence of water to form extra strong cementing material which
resists wet cracking, thermal cracking and has a high degree of cohesion and workability in
concrete and mortar.
SWOT ANALYSIS OF ULTRATECH CEMENT:
S) STRENGTH:
Good quality
Good brand image in the market.
Good sales and marketing strategy
It has got maximum score in consumer satisfaction
W) WEAKNESS:
Price is very high as compared to other brands.
Productive performance is a bit low
Its weakness also lies in its foreign trade measure.
O) OPPORTUNITIES:
Substantially lower per capita cement consumption as compared to developing countries (1/3 rd of world average) Per capita cement consumption in India is 82 kgs against a global average of 255 kgs and Asian average of 200 kgs.
T) THREATS:
Possibility of over bunching of capacities in the long term as some of the players have
already announced new capacities
Transportation cost is scaling high; bottleneck due to loading restrictions.
The import of cement from Pakistan.
MANAGEMENT TEAM OF ULTRATECH CEMENT:
Board of Directors
Mr. Kumar Mangalam Birla, Chairman
Mrs. Rajashree Birla
Mr. R. C. Bhargava
Mr. G. M. Dave
Mr. N. J. Jhaveri
Mr. S. B. Mathur
Mr. V. T. Moorthy
Mr. S. Rajgopal
Mr. D. D. Rathi
Mr. O. P. Puranmalka, Wholetime Director
Executive President and Chief Financial Officer
Mr. K. C. Birla
Chief Manufacturing Officer
Mr. R.K. Shah
Chief Marketing Officer
Mr. S.N.Jajoo
Chief People Officer
Mr. C. B. Tiwari
Company Secretary
Mr. S. K. Chatterjee
ACHIEVEMENTS OF ULTRATECH CEMENT:
National awards won by Awarpur Cement Works
Year Award
2000-2001Indo-German Greentech Environment Excellence Awards by the
Greentech Foundation, New Delhi
1999-2000 Business / Trade Award Jamanalal Bajaj Uchit Vyavahar Purashkar
1999 ISO 14001 Certification By M/S Det Norske Veritas in November
1996ISO 9001 Certification By M/S Der Norske Veritas
FIMI National Social Awareness Awards
1995-96 FIMI National Social Awareness Awards
1995Indira Priyadarshini Vrikshmitra (IPVM) National Award By Ministry of
Environment & Forests, Goverment of India
1994-95Special Gold Award By The Council of Industry & Trade Development for
Quality
1994Delhi Comendation Certificate - Rajiv Gandhi National Quality Award By
Bureau of Indian Standards
1992-93
Social Welfare Council of Industrial & Trade Development Award
Fimi National Environment Award By Federation of Indian Mineral
Industries, New Delhi
1992 Productivity National Award By Indian Merchant's Chamber, Mumbai
State level awards won by Awarpur Cement Works:
Year Award
2003-2004Overall Performance First Prize of Naokari Limestones Mines Amongst
Mechanised Mines During MEMC Week
2000 Vidarbha Industrial Industry Safety Committee
1997-98 Directorate General of Mines Safety, Nagpur Region
1994 Nagpur Garden Club, Nagpur
1993Horiculture District Collectorate, Chandrapur
Vidarbha Industrial Industry Safety Committee
1992-93 Mineral Conservation Award IBM, Nagpur Region
1990Environment Conservation State Award — ' Vanashree' By Goverment of
Maharashtra
Awards won by Gujarat Cement Works:
Year Award
2004Bhartiya Udyog Ratan Award presented to Sh. KYP Kulkarni By Indian
Economic Development & Research Association (IEDRA), New Delhi
2002-2003 Greentech Gold Safety Award By Greentech Foundation, New Delhi
2002 Gujarat State Safety Award By Gujarat Safety Council (GSC), Vadodara
2001-2002Greentech Environment Excellence Award By Greentech Foundation, New
Delhi
2001Awards for Excellence in "Industrial Relations" By Federation of Gujarat
Industries (FGI), Vadodara
Awards won by Andhra Pradesh Cement Works:
Year Award
2004-2005 State and Zonal level I prize for overall performance in Mines safety
2003-2004 Energy efficient unit award from CII
2002-2003
Energy Conservation Award from PCRA
Excellence Award in Water Conservation & Pollution Control by APPCB
Gold medal for Six Sigma Project on Optimisation of Compressed air energy at HIMER National Conference
FIMI environment award for mines
2001-2002
Award for six sigma project on reduction in specific fuel consumption at NIQR
Energy efficient unit award from CII
Best rural development effort award from FAPCCI
Appreciation award from NSC for achieving OHSAS-18001
Best management award from ministry of Labour, AP Govt.
1999-2000 Indo-German Greentech environment excellence award
Awards won by Hirmi Cement Works:
Year Award
2001-2002 Environment Energy Foundation award for water conservation.
2001-2002Fuller Energy award for reduction in specific power consumption (KWH/T) per tonne of cement
Export awards
Worldwide, clients have consistently endorsed UltraTech's highest quality standards. The list
of export awards it has won is testimony to UltraTech's uncompromising standards on
product quality. We have been on the roll call of top exporters of the Chemicals & Allied
Products Export Promotion Council (Capexil), year after year.
Ultratech won the Capexil Certificate of Export Recognition - Top Exporter - Cement,
Clinker, Asbestos and Cement Products for the years 2000, 2002 and 2003.
THE ULTRATECH CEMENT ADVANTAGE
Customer Care and Guidance:
UltraTech Cement offers customers a range of "product plus" services. A full- fledged
Technical Services Network has been set up exclusively for 50 technical advice and guidance
in usage of cement UltraTech Cement is marketed nationwide through large network of
stockist's, sales officers and representatives. Cement dumps have also been established at
strategic locations to facilitate faster delivery of cement.
Value Added Services:
Mobile concrete lab services ( Concrete cube testing facilities )
Training Programmes for masons, site supervisors on good construction practices
Field visits by qualified civil engineers
Educating individual house builders on various aspects of building material and construction
Non-destructive testing of concrete
Any other customer specific services
Applications:
All Kinds of constructions including precast and prestressed concrete, masonry works
Slip form constructions
Rehabilitation and retrofitting works
Cement based products such as pipes, tiles, blocks, poles,etc.
Roads, runways, bridges and flyovers
Data Presentation, Analysis
And
interpretation
Analysis of questionnaire for cement
sellers.
1. Which brand do you prefer most?
Ultratech40%
A mbuja 25%
B inani5%
B irla utam 10%
B irla C hetak10%
J K C ement5%
J aypee5%
Ultratec h
Ambuja
B inani
B irla utam
B irla C hetak
J K C ement
J aypee
While answering this question 40% of respondents said
ultratechis the most preferred brand, 25% said Ambuja is the best
brand, 10% for Birla utam, 10% for Birla Cheta,5%for Binani,JK
Cement, Jaypee. So from this we can say that UTCL is still in a
commanding position in the Dealer mind. The company should grab
those customers by the retailers. All other brand have a negligible
share.
2. Which brand do you store?
Ultratech40%
A mbuja 25%
B inani5%
B irla utam 10%
B irla C hetak10%
J K C ement5%
J aypee5%
Ultratec h
Ambuja
B inani
B irla utam
B irla C hetak
J K C ement
J aypee
3. Why are you dealing with ultratech?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Demand To Add V eriety High Margin No C omment
S eries 1
Out of 40 respondents 16 are dealing with UTCL. But out of 40 respondents 80% have said they are dealing with UTCL because of customer’s demand that shows, there is a very good customer demand for UTCL. 10% of respondents said due to high margin they are dealing with UTCL, it means UTCL should give more margin to the retailers. 10% off respondents said they are dealing with UTCL only to add variety.
4. Why are you not dealing with ultratech?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Term & C ondition L ow Margin
S eries 1
5. Which brand does your customer prefer?
Ultratech40%
A mbuja 25%
B inani5% B irla utam
10%
B irla C hetak10%
J K C ement5%
J aypee5%O ther
20%
Ultratec h
Ambuja
B inani
B irla utam
B irla C hetak
J K C ement
J aypee
6. Rank the companies on the basis frequency of making personal visits & ph calls.
Ultratec h, 40
Ambuja , 25
B inani, 5
B irla utam , 10
B irla C hetak, 10
J K C ement, 5
J aypee, 5
Ultratec h
Ambuja
B inani
B irla utam
B irla C hetak
J K C ement
J aypee
While answering this question 40% of respondents gave Ist
Rank to ultratech 25% said Ambuja is the best , 10% for Birla
utam, 10% for Birla Cheta,5%for Binani,JK Cement, Jaypee. So
from this we can say that UTCL is still in a commanding position in
the Dealer mind on the basis of frequency of personal visit. The
company should grab those customers by the retailers. All other
brand have a negligible share.
\
7. Rank the companies on the basis of their transportation facilities?
Ultratec h, 40
Ambuja , 25
B inani, 5
B irla utam , 10
B irla C hetak, 10
J K C ement, 5
J aypee, 5
Ultratec h
Ambuja
B inani
B irla utam
B irla C hetak
J K C ement
J aypee
Research Design
and
Methodology
3.1 Sampling Design
Survey has conducted by circulating questionnaires among the dealers and sub-dealers, in Bhiwani & Charkhi dadri .
Data source: Data collected first hand directly from the retailers / stockiest by questioning them
. Sampling unit: Since there are so many cement outlets in Bhiwani l, the universe of survey included all cement retailers of Bhiwani city.
SAMPLE SIZEa) 50 samples have been taken from the all cement outlets of
Bhiwani & charkha dadri.
SAMPLING PROCEDUREA sample is that by selecting some element from the population and by using the information we got from the sample we can draw conclusion about the population. All the samples have randomly selected .
Source and methods of Data collection
Area of study: Charkhi Dadri & BhiwaniThe design guides selection of sources and types of information. A research design is based on research questions. The market survey conducted on dealers, sub-dealers over Bhiwani city.
TOOLS USEDVarious tool which will be used in this research are given below
1) Questionnaire 2) For analysis of data
MS Excel
INSTRUMENT DESIGNQuestionnaire will be selected as research instrument with the
following features 1) Closed end questions
2) Open end questions
Facts kept in mind while preparing the QuestionnaireA) Questionnaire made simple and easy to understand.
B) Respondents were provided with multiple-choice questions.
C) Questions on suggestions and comments were kept open
ended.
Limitation of the Study
The research method and research reports may not be completely free errors and drawbacks. There will be some of the study, which should be known to the researcher and must be accepted while preparing the report. The hide out limitations must be dangerous to the research as well as to the executive because they may use the conclusion and recommendation without caring for the limitations. That may be prove to be fatal organism while implementing the measure suggested after the analysis of the report.
• The project was done only for Bhiwani & charkhi dadri city.
Therefore, the report could have been better one if it can
cover more areas of Haryana.
• This project report covers mostly urban areas so the
perception of the rural people might be differ from it.
• The respondents are unenthusiastic to answer the questions in
the absence of the owner.
• Some of the respondents really had no sales information as
they said they have never calculated the average sales.
• The respondents refused to answer during the business hours
for which I had it visit them several times.
• Some of the respondents were very casual when answering
the questions.
• The prospective cement respondents have shown their anger
while answering the questions the question because they said
they don’t want to start cement business and refused to give
any suggestion for improvements in UTCL’s marketing.
• Due to time, money and piercing heat constraint I could not
cover all the cement retailers in Bhiwani city.
•
BIBLIOGRAPHY
http://www.ultratechcement.com/
http://en.wikipedia.org/wiki/Cement
http://www.adityabirla.com
http://www.tradechakra.com/indian-economy/industries/cement-industry.html
http://en.wikipedia.org/wiki/Cargo
http://www.businessdictionary.com/definition/freight-cost.html
http://en.wikipedia.org/wiki/Economic_cost
http://www.icfi.com/publications/doc_files/fhwa%20freight%20story.pdf
http://en.wikipedia.org/wiki/Logistics
http://en.wikipedia.org/wiki/Transport_economics
http://www.britannica.com/EBchecked/topic/603153/transportation-economics
http:// www.google.com
http:// www.cmaindia.org
http://ibef.org/industry/cement.aspx
http://business.mapsofindia.com
1
ANNEXURES
Questionnaire
Detail of Retailers: -
Name of Firm
Name of Owner
Address
Contact No. (O)
(M)
Number of years in business
1.Which brand do you prefer most?
Ultratech Binani Ambuja Birla Chetak
Birla Uttam
J.K.Cement
Jaypee
2.Which brand do you store?
Ultratech Binani Ambuja Birla Chetak
Birla Uttam
J.K.Cement
Jaypee
3.Why are you dealing with ultratech?
a. Demand
b. High Margin
c. To add variety
d. No comment
4.Why are you not dealing with ultratech?
a. No Demand
b. Low margin
c. No company visit
d. Bad Behaviour
5.Which brand does your customer prefer?
Ultratech Binani Ambuja Birla Chetak
Birla Uttam
J.K.Cement
Jaypee
6.What is the Avg. monthly sale of different brands of cement?
Ultratech Binani Ambuja Birla Chetak
Birla Uttam
J.K.Cement
Jaypee
7.Rank the companies on the basis frequency of making personal visits & ph calls.
8. How much credit in days do you enjoy from the following Companies?
9. Maximum profit you get out of selling various brands rank them?
Brand
Name
Ultratec
h
Binani Ambuja Birla
Chetak
Birla
uttam
J.K.Cemen
t
Jaypee
Rank
Brand
Name
Ultratec
h
Binani Ambuja Birla
Chetak
Birla
uttam
J.K.Cemen
t
Jaypee
Days
Brand
Name
Ultratec
h
Binani Ambuja Birla
Chetak
Birla
uttam
J.K.Cemen
t
Jaypee
Rank
10. Rank the companies on the basis of their transportation facilities?
11. Rank the companies on the basis of their cement delivery time?
12. What kind of problem you generally face with transport?
a. Non availability
b. Transportation Cost
c. Others
13. Rank the companies on the basis of the response to customer complaints.
Brand
Name
Ultratec
h
Binani Ambuja Birla
Chetak
Birla
uttam
J.K.Cemen
t
Jaypee
Rank
Brand
Name
Ultratec
h
Binani Ambuja Birla
Chetak
Birla
uttam
J.K.Cemen
t
Jaypee
Rank
Brand
Name
Ultratec
h
Binani Ambuja Birla
Chetak
Birla
uttam
J.K.Cemen
t
Jaypee
Rank