Professional Documents
Culture Documents
ACKNOWLEDGEMENT
CONTENTS
INTRODUCTION
CEMENT – PRODUCT HISTORY
CEMENT INDUSTRY
1.BHARATI CEMENT COMPANIES LTD
2.FIRM PROFILE (SRI SHABAREESH AGENCIES)
SURVEY FINDINGS
SUGGESTIONS AND CONCLUSION
INTRODUCTION
AIMS AND OBJECTIVE SCOPE OF THE STUDY
METHODOLOGY
LIMITATIONS
INTRODUCTION
Indian Marketing Environment is largely described as sellers market. We have
chronic shortages and scarcities particularly in convenience goods. Demand is
invariably greater than supply. Purchase power do masses is limited more than
30% of our population have income below poverty line bulk of our population
resides in villages and marketers have yet to capitalize rural marketing
opportunities. The consumers are ignorant, illiterate, unorganized and hence they
have weak bargaining power. Most of our business enterprises are still having
selling concept, which is product oriented marketing approach. Bigger business
houses having national markets are adopting integrated corporate planning and
market planning as well as strategic market programmes. Marketing Research and
information as well as strategic marketing planning have very limited scope at
present. A change is taking place in the marketing environment at a reasonable
speed and many consumer oriented marketing companies are beginning to realize
the pressure of competition and buyer’s market. But the transaction to marketing
orientation is a long and difficult process. Marketing research has a bright future
in the feature of matured economy. Marketers are caked upon to anticipate
changes in the marketing environment involving opportunities risks and
uncertainties. They are regained to forecast the direction and intensity of there
future change plant to meet anticipated changes in the environment and secure
favorable relationship with the changing environment. To do there intelligent
planning marketers need information. Accurate sales forecasting involves
collection and processing of information. We can have more accurate and reliable
sales forecast, marketing plans and programmes through organized information
system. We should have profitable marketing activities, minimum risks and
uncertainties. This project report offers detailed regarding marketing of Cement
in general and marketing performance and marketing share of Bharathi
cement. It also deals with a case study of SRI SHABAREESH AGENCIES, SHIMOGA,
reference have been made to marketing of other Cements also so as to bring out
comparative cements. In the modern world Cement has gained so much
recognition that no building is built without Cement. It is deemed to be the best
and only construction material at present. Even though cement is used by almost
every man he does not know much about it. This project report attempts to bring
about details regarding history, manufacturing process, types of cement available,
problems in marketing if cement and other details regarding cement. Efforts have
also been made to get the opinion of dealers regarding marketing and other
aspects of Cement etc., and consumer’s opinion regarding Bharathi Cement.
Attempts have also been made to assess the marketing performance of SRI
SHABAREESH AGENCIES and certain suggestions have also been given for
improvement of marketing strategy by adopting suitable marketing programmes.
AIMS AND OBJECTIVE
1. To know about the process of manufacturing cement.
2. To know about the raw materials used in the process.
3. To analyze the sales performance of Bharathi cement in General.
4. To analyze the sales performance of Cement by SRI Shabareesh Agencies.
5. To assess marketing strategy adopted by SRI Shabareesh Agencies.
6. To analyze the general problems in marketing of cements and specific problems
confronted by Sri Shabareesh Agencies.
7. To know consumer preference towards various brands of cement especially
towards Bharathi Cement.
8. To give specific suggestions for improvement pf marketing strategy of Sri
Shabareesh Agencies. SCOPE OF THE STUDY The scope of this report is restricted
to the study of consumer preference and Dealers opinion regarding marketing of
Bharathi Cement in Shimoga City.
This report includes the efforts that have been taken up by the Bharathi cement
Companies Limited to improve the quality and sales and also the efforts that have
been taken up by Sri Shabareesh Agencies” to increase the sales of Bharathi
cement in Shimoga city.
METHODOLOGY
The Method adopted to conduct this study may be classified into 2 types. The
information has been gathered through two sources.
1. Primary data.
2. Secondary data.
The primary data has been collected through personal interview and by
observation. It has been collected directly from the Firm Proprietor’s information
are collected by observational methods. Sources of Secondary data like News
papers, Magazines, Books, Internet helped a lot in preparing this case study.
LIMITATIONS
Since Cement is used only in the process of construction. It is rather difficult to
get respondent everywhere. It is also difficult to known the opinion of
respondences each and every one will have qualitative knowledge about Cement.
There are channel of respondent issues being this chance whether it may be a
wrong or right this; may create a bias in response. However it has been avoided as
for as possible.
The scope of study reconfirmed to shimoga only. The reference has been drawn
with the help of opinion of both consumer’s and dealers of Shimoga town. There
may be channel of inference becoming unsuitable in, such marketing
environments which have completely a different set up of marketing friend’s.
As Cement is a product confirmed to person who are involved in the process of
construction. It is very difficult to get information for every one.
Even though it is difficult all attempts as have been made and necessary
precisions have been taken to award bias and get answer to make the report a
relative one.
CEMENT – PRODUCT HISTORY
INTRODUCTION
PORTLAND CEMENT
USE OF PORTLAND CEMENT
PRODUCT HISTORY
PRODUCTION OF CEMENT
MODERN PROCESS OF MANUFACTURING CEMENT
THE MODERN PROCESS
TYPES OF CEMENT AVAILABLE
STORAGE OF CEMENT
WET PROCESS
STORAGE TANK
The mixing of raw materials involves four stages.
They are
a. Size reduction.
b. Blending.
c. Liberating Carbon-di-oxide.
d. Pulverizations.
The procedures are the phases are almost identical in both the process.
The phases are step that are involved in the manufacturing process is
a. Mixing of raw materials
b. Burning. c. Grinding.
TYPES OF CEMENT AVAILABLE
Till a few years back in India only ordinary Portland cement was produced. But
they were not ideal for extreme weather in certain part of the country. Also this
cement did give good outlook if not pointed therefore the manufacturers come to
know about these factors and have manufacture different types.
The list of cement is given here.
1. White cement
2. Color cement.
3. Water proof.
4. Acid Proof
5. Blast furnace.
6. High Alumina Cement
7. Ordinary Portland Cement
8. Expanding Cement
9. Pozzolana Cement.
10. Quick Setting Cement
11. Rapid Hardening Cement
STORAGE OF CEMENT
Cement should be stored very care fully. That is in huge closed containers
that is silos. It is stored in closed placed to avoid contact with atmosphere. This so
because if it gets mixed with the moisture in the atmosphere. It becomes useless.
It can also be stored in storage shed.
Cement was previously packed in gunny bags. But by the time it reached
actual consumer half it would have been split over. This was compounded sealing
problem. The bags were sealed with threads. But was not so strong. But after the
polythene or Plastic bags came into scene the loss has been curtained. It has
become easy for transportation.
The bags are sealed with the help of machine. Hence major problem of storing
and transporting has been averted.
HOW IS CEMENT USED?
A mixture of cement and water is called heat cement paste, whether fresh or
hardened. In some granting operations, so including oil well cementing. The paste
used as such generally; however, it constitutes the hardening ingredient in mortar
or concrete. This Cement paste ordinarily amounts from 20% to 35% of the
volume of the concrete.
CEMENT INDUSTRY
CEMENTING CONSTRUCTION SECTOR
COAL REQUIREMENTS
TRANSPORTATION
CEMENT INDUSTRY
CEMENTING CONSTRUCTION SECTOR:
Cement is the basis material required for all constructional works. It is vital
ingredient to the countries development.
India’s Cement Industry has experience steady progress. Since its inception in
1914. The output of the major and mini cement plants has increased from 57.6
million tons in 2001-02. The out put of cement may be high at 68 million tons in
2002-03. India is the fifth largest cement production after China, Russia, Japan
and U.S.A. With the turnover of Rupees 120 billion comprising 52 companies with
101 plants.
The cement industry in India is poised to scale new heights thanks to the
liberalization policies of the Government adoption of state of the art Technology
and the massive investment of rupees 100 billion. By the year 2010 A.D. capacity
of this Industry to reach the impressive level of 120 million tons .
India is presently producing several varieties of cement. These includes to
ordinary Portland Cement(OPC), Portland Pozzalana cement (PPC), Portland Blast
furnace slag cement (PBFS), Rapid setting cement , oil well cement and white
cement. India is also producing high strength cement like 43 grades and 53
grades. Low heat cement is produce for the massive construction of Dames,
Barrages, Deep foundation for high rise building etc.
The domestic demand is assumed to grow at 8% per annum. The cement
capacity which was 62.05 million ton’s in 1992-93 rise to 84.03 million ton in
2000-01. Around 7.85 million tons large cement capacity was proposed to add
during 2006-07 of which 5.50 million ton was to be operational in 2008-09 and
the remaining 2.35 million ton would be operational; in 2008-09. Cement
consumption may reach a level of 92.65 million tons by 2010.
Mini cement plants were setup at the governments insistence during the
early 1980’s due to the storage of cement. India has been one of the pioneering
countries as for as mini cement plant sprouted up around restricted and scattered
limestone deposit areas. Because of low overheads and excise duty, the cement
manufactured by mini plant is much cheaper. Mini plant enjoy concession in
excise duty to the extent of rupees 7.50 per bag. However these plants depend
upon traditional technology leading to poor quality of cement.
Cement Machinery segment is witnessing a boom. Segment is capable of
manufacturing and supplying complete cement plants based on the dry process
and precalcinations technology for capacities upto 5000 tons per day. There are
18 units in the organized sector for the manufacture of complete cement plant
with total installed capacity worth rupees 2000 million per annum. The total
production rise from rupees 1900 million in 2000-01 to rupees 2250 million in
2001-02.
Inspite of some problem, the cement industry is at present well pleading. It
looks 14 years to double the capacity to 29 million tons in 1998. Since then upto
the end of March 2000, it had gone upto 96.5 million tons and increase of 140 %.
Like wise in 1999-2000 consumption has gone up by 6% after 1% fall in previous
year of course, government consumption has down from 50% in the early 1980’s
to about 20%.
The Cement has great future however certain measures as needed to setup
the space of growth of cement industry.
There is need for accelerating the building of concrete road and multi purpose
hydro project. The storage of dwelling units is currently at 35 million.
Construction of houses should priority area. Currently India exporting cement to
Bangladesh, Srilanka, Nepal, U.A.E., Maldives, Philippines, Yemen, Dubai, Qatar,
and of few other countries.
The international cement rate is mostly in bulk for which, India has virtually no
facilities either in the cement or in the transportation and handling. The
infrastructural facility in our ports are inadequate for receipts, storage, handling,
loading and unloading of cements for instance Japan loads over 10,000 tons of
cement clinker a day as compared to India’s 3,000 ton a day.
COAL REQUIREMENTS:
The availability and movement of coal has been of perennial problem of the
cement industry. 90% of the coal deposits are located in four states in Bihar,
Orissa, West Bengal, and Madhya Pradesh. Also burning Madhya Pradesh none of
the other states have any sizable lime stones deposit.
This coal has to be handled or very long distance. Coal requirement by the
industry today stands at 13 million tons at the 6% of the coal production. Cement
manufacturer are left the mercy of traders in coal who charge exorbitant prices.
The coal requirements may go upto 21 million tons in 2006-07 and 25 million tons
by 2010.
Transportation whether by rail, road or sea plays a crucial role in the
marketing and pricing of cement. Transportation cost has gone up by over 100%
during the last 10 years. The bright for movement of cement for a distance of 750
km was increased from rupees 134 per ton in May 1982 to rupees 456 in April
2001. This was further stepped upto rupees 484 by the railway budget for 2006-
07.
According to cement manufacturing association (CMA) on investment of
rupees 500.00 million will be needed by the industry in the next 10 years in order
to double its capacity, if it is to meet the countries demand on other rupees
150.000 million would be required for expansion and modernization.
The cement industry has taken rapid strides in area like energy
conservation, mining, cement manufact5urer and environment protection, thanks
to efforts made by the nation council for cement and building material (NCBM)
and other research organization.
As a result of large scale modernization and technology up gradation,
the industry is able to produce Cement at High quality comparable to the best in
the world. During the last two decades the industry did experienced some
technological changes.
This includes;
1.Introduction of pre-calcinations technology
2. Computer controlled kiln operation.
3. Pre blending of lime stone / coal and
4. Online quality control system.
The technological changes have resulted in reduction in the overage energy
consumption. The excise and transportation of cement need to be pruned
particularly in the present context of liberalization and also the need for
boosting exports. In respect of vital in put like cement and any undue cost
escalation needs to be checked.
TRANSPORTATION
The cost of transportation and distribution constitutes a large chunk of
the price the customer pays for cement - it can be as much as 30% at many
locations in the country. For a low value basic product like cement, minimizing
of transportation and distribution is in national interest to make the economy
more cost competitive.
Today nearly 60% of cement of production units to supply points is
transported by road and rest by rail. For long distance movement of cement,
rail is still the preferred option due to its lower cost. Nearly all the cement
from supply points to customer is transported by road. The cost
competitiveness of both rail and road transport has important bearing on the
price of cement. Railways have been steadily losing cement traffic due to the
inflexibility of freight and the operational; restrictions imposed on the
customer. The recent improvements of operational efficiencies of railways is
indeed laudable but if this is achieved by passing on the entire burden to its
customers, We fear that the cost competitiveness of railways will worsened in
a long run - at least for a large volume low price product like cement. Railways
must examine all secondary incurred by cement producer in transportation of
cement from rail heads if the cost competitiveness of rail movement is to be
improved. Railway should also consider allowing cement producer to operate
point-to-point rakes, with multiple unloading points.
Road transportation during the last years was adversely effected due to
sharp and repeated increase in the price of diesel. Taking advantages of the
effective caring capacity of trucks, road transporter were offering competitive
freight rate by carrying mare than stipulated loads. However the enforcement
of carrying load restriction in the recent past in many states has seriously
disrupted road transport system in the country. Freight has shot up with the
demand for a higher number of vehicles for the same impact on the cement
industry will ever more severe. Also pollution and traffic will increase if the
same volume is transported by large number of vehicle.
It is apparent that motor Vehicles produced in the country have the capacity
to carry large loans per axle than is currently stipulated, with out
compromising safety. It will in the national interest to consider upward
revision of the present stipulated permissible loads per axle is that the existing
stock of vehicles is more productively used. This will also meet the needs of
the cement industry which one of the largest used of road transport. Indian
railway has revised upward the effective capacity of their wagons; a similar
move is called for in respect of road transport to tie over the looming crisis.
The Bharathi Cement Company Limited
The Bharathi Cement Corporation Limited
Founder
Directors
HARISH C KAMARTHY
M RAVINDER REDDY
Mr. M. Ravinder Reddy, B.Com (Hons.) from Osmania University and an MBA
(Mktg.) from Berhampur University has diverse work experience in Cement
Industry over 22 years.
• As a Chief Manager (Marketing) worked with Priya Cement (Priyadarshini
cements Limited) presently known as Rain Commodities Ltd, launched HDPE
packing by replacing Jute packing, created brands for various grade like grade,
OPC 43 grade, OPC 53 grade and SRPC, introduced paper bag packing in Tamil
Nadu and Kerala markets.
• As Asst. Vice President (Marketing), worked with Bagalkot Cement, Karnataka
(Kanoria Industries Limited) and achieved 100% capacity utilization which as a
record.
As Vice President (Marketing), worked with Penna Cement (Penna Cement
Industries Limited), established Penna Brand in South Indian markets in the year
1996. In 10 years time the capacity of the plant of 0.40 MT was increased to 5.00
MT per annum. He was also an achiever by successfully launching and establishing
Slag Cement in South India with premium price.
• He is a Director in Bharathi Cement Corporation Limited from September 2008
onwards.
G BALAJI Mr. G Balaji is a Fellow member of the Institute of Chartered
Accountants of India and a Cost & Management Accountant having over 20 Years
Experience in the fields of Finance, Accounts, Treasury, Management Accounting,
Audit, Taxation & Administration.
• He has wide exposure across the major sectors of Manufacture & Service, Viz.,
Textiles, Engineering, Chemicals, Multi-Media & Automotive, Event Management,
ITES, etc.
• Has specialized knowledge in Special Economic zones, EOUs & Management
Consultancy.
• All through his Career, he has been go-getter and achiever of the tasks and
contributed immensely in the field of Costing, Accounting, Finance & Treasury
wherever he has worked.
• He has also had overseas exposure in Australia and has to his credit the
graduation course wherein he has qualified in the Australian Tax laws and
Corporate laws.
At present he is Director- Finance in Bharathi Cement Corporation Ltd.
operation is
TAMPER-PROOF PACKING
When cement bags are dumped on the ground, the impact causes cement to spill
out of the bag. This causes considerable loss, considering that some projects
require thousands of bags, but you incur no such loss with Bharathi Cement.
Bharathi Cement is packed in fully imported, tamper-proof PP laminated bags,
which do not allow the minutest of cement particles to spill. This ensures accurate
weight and also eliminates any possibility of pilferage. This technique of packaging
is also eco-friendly.
The cement religiously processed and produced is packed in specially designed
imported polypropylene bags which are dust proof and tamper
Strength
High tensile strength is the result of a tape stretching process, which give
monoaxial orientation to polypropylene molecular chain.
• Due to woven structure and lamination, sack has more tear resistanc
Environment Friendly:
• Sack is made of polypropylene which is environment friendly degradable
thermoplastic material.
• When incinerated or put to waste it does not pollute air, soil or water with toxic
residues.
• Empty sack it recycled and can be used for producing new Sacks.
• Bharathi Cement is packed in imported, tamper-proof, PP laminated bags.
There's no chance for any pilferage or adulteration.
Easy Handling:
• Sack is required with valve that facilitates easy filling and self closing operation.
• Brick shape of sack facilitates easy handling, compact storage, and efficient
transportation.
Hermetical sealing instead of pasting or stitching:
• Weak assembling methods based on stitching operations or sensitive and
degrading
• adhesives have been avoided in production of the sack. Instead of this heat
welding/ hermetical sealing is used to assemble the sack.
• High tech special printing, I.e. non fading, resistance to water/ moisture and
high temperature makes the packaging attractive to the customer.
PRODUCTS
OPC 53 GRADE
• Speedy construction
• Durable concrete
• Economic concrete mix designs
• Low percentages of alkalies, chlorides, magnesia and free lime leads to the
production of durable concrete.
PSC
MARKETING PROBLEMS
M/S The Bharathi Ltd directly involves in marketing problem and looks in to the
depth of all the fallowing problems.
1.Competitive market.
2. Price fluctuation
3.Consumer awareness
4. product advertisement
5. Location of the Firm
6. Size of the firm.
SURVEY FINDINGS
ANALYSIS OF THE SURVEY
CONSUMER SURVEY FINDINGS
ANALYSIS OF THE SURVEY
The analysis of the survey was done by dividing the total respondents into
different categories are on the basis of income and occupatio
During the time of surveying the customer was not clear about their demand
nor they had clear comprehension of their problems and definite in their
suggestion for the solving the problem. However the following problems were
found out at the time of the survey, and the same was to Bharathi authorities.
The Bharathi authorities were enough to give answer to those problems faced by
the customers.
CONSUMER SURVEY FINDINGS:
The total number of respondents interviewed had used cement fully and it was
observed that the Bharathi cement was quite well known in the city.
Table No-1
Table showing the Distribution of cement consumer interviewed in different areas
in Shimoga district.
The table gives maximum details regarding the responden interviewed, i.e, and
brand wise in different parts in shimoga. In this table out of 100 respondents 38 in
Shimoga, 25 in Bhadravathi, 20 in Sagar, and 17 in Hosanagar Respectively.
Out of the 100 respondents contacted 32% of them from 10,000-15,000 which
constitute the largest portion of the respondents and the lowest group is of the
income group above 25,000 which is of 18% only.
Graph showing the distribution of respondents under Income groups
Table No-5
Table showing the consumers are come to know about Shabareesh agencies from
different aspects they are shown below.
Bharathi cement company, sales officer visit the dealer regularly that is once in
every month.
Bharathi cement company should give credit facility to its dealers.
Bharathi cement company should pay much attention towards warehousing
and transportation facilities.
Bharathi cement has earned a good name in the market. It should
maintain and improve the same its price is high than the other cements. Some
types consumers observe only price of the product in this regard BHARATHI fails
to participate in the cement market so product price will be maintain and
economic level.
The finding of the survey is enough proof to show that Bharathi
cements ranks high in quality, composition etc., It is observed that Bharathi
cement has a maintained better product image among the person who have used
it and are using it. The company has also vast network of salesmanship no doubt
these
things will have a long way in improving not only product image but also the
corporate image. But in competitive field one should not satisfy himself with
present performance. In order to maintain higher competitive efficiency there
should be continuous product planning and market improvement.
Bharathi cement producer and their dealers in shimoga city may
consider the preference analysis in the report and suggestions given in the report
for achieving higher standards of marketing performance in the future.
CONCLUSION
things will have a long way in improving not only product image but also the
corporate image. But in competitive field one should not satisfy himself with
present performance. In order to maintain higher competitive efficiency there
should be continuous product planning and market improvement.
Bharathi cement producer and their dealers in shimoga city may
consider the preference analysis in the report and suggestions given in the report
for achieving higher standards of marketing performance in the future.
things will have a long way in improving not only product image but also the
corporate image. But in competitive field one should not satisfy himself with
present performance. In order to maintain higher competitive efficiency there
should be continuous product planning and market improvement.
Bharathi cement producer and their dealers in shimoga city may
consider the preference analysis in the report and suggestions given in the report
for achieving higher standards of marketing performance in the future.