Professional Documents
Culture Documents
On
AMBUJA CEMENTS
PREPARED BY:
SUDHIR CHAUHAN
NEW DELHI
CONTENTS
Chapter-1
a) Introduction about the cement industry
Chapter-2
Introduction to the organization
Background of problem task
Rationale
Scope of the project
Chapter-3
Objective of the study
Main objective
Specific objective
Chapter-4
Methodology
Data collection method
Research methodology
Swot analysis
Pest analyasis
Chapter-5
Data analysis
Chapter-6
Limitations of the study
Chapter-7
Findings
Chapter-8
Recommendations
Chapter-9
Bibliography
Chapter-10
Sample questionnaires
OVERVIEW OF THE CEMENT INDUSTRY
The Indian Cement industry is the second largest cement producer in the world,
with an installed capacity of 144 million tonnes. The industry has undergone
rapid technological upgradation and vibrant growth during the last two decades,
and some of the plants can be compared in every respect with the best operating
plants in the world. The industry is highly energy intensive and the energy bill in
some of the plants is as high as 60% of cement manufacturing cost. Although the
newer plants are equipped with the latest state-of-the-art equipment, there exists
substantial scope for reduction in energy consumption in many of the older plants
The Indian cement industry is a mixture of mini and large capacity cement plants,
ranging in unit capacity per kiln as low as 10 tpd to as high as 7500 tpd. Majority
of the production of cement in the country (94% ) is by large plants, which are
defined as plants having capacity of more than 600 tpd. At present there are 124
large rotary kiln plants in the country. The Ordinary Portland Cement (OPC)
enjoys the major share (56%) of the total cement production in India followed by
Portland Pozzolana Cement (PPC) and Portland Slag Cement (PSC). A positive
trend towards the increased use of blended cement can be seen with the share
production in India due to the limitations posed by raw material and fuel sources.
Most of the cements plants in India are located in proximity to the raw material
sources, exploiting the natural resources to the full extent. The southern region is
the most cement rich region while other regions have almost same
cement production capacity. The Indian cement industry is about 90 years old
and its main sources of energy are thermal and electrical energy. The thermal
energy is generally obtained from coal, and the electrical energy is obtained
either from grid or captive power plants of the individual manufacturing units.
• Indian cement industry is the second largest in the world with an installed
· There are 124 large plants and around 365 mini plants. The industry presents a
mixed picture with many new plants that employ state-of-the-art dry process
technology and a few old wet process plants having wet process kilns.
· Production from large plants (with capacity above 1 MTPA) account for 85% of
· The cement industry has achieved significant progress in terms of reducing the
overall energy intensity. Dry process plants that the weighted average thermal
energy consumption was 734 kCal/kg clinker, and weighted average electrical
3. Quantitative details:
The energy intensity of the all the dry process plants (cost of energy as
Specific thermal and electrical energy consumption for the plants ranges
between 692 – 879 kCal/kg. of clinker and 66 – 127 kWh/ton of cement produced
(product mix) respectively. The specific electrical energy also includes the energy
consumed in packing, plant utilities and plant lighting. The reasons for wide
Total production
The cement industry comprises of 125 large cement plants with an installed
capacity of 148.28 million tonnes and more than 300 mini cement plants with an
has 10 units. There are 10 large cement plants owned by various State
million tonnes. Actual cement production in 2002-03 was 116.35 million tonnes
Apart from meeting the entire domestic demand, the industry is also exporting
cement and clinker. The export of cement during 2001-02 and 2003-04 was 5.14
million tonnes and 6.92 million tonnes respectively. Export during April-May,
2003 was 1.35 million tonnes. Major exporters were Gujarat Ambuja Cements
The Planning Commission for the formulation of X Five Year Plan constituted a
'Working Group on Cement Industry' for the development of cement industry. The
Working Group has identified following thrust areas for improving demand for
cement;
Table given here is representing the cement industry growth through five year
plans……
March 1989 and de-licensed on 25th July 1991. However, the performance of the
industry and prices of cement are monitored regularly. Being a key infrastructure
industry, the constraints faced by the industry are reviewed in the Infrastructure
Technological change
been going on in the cement industry. Presently 93 per cent of the total capacity
technology and only 7 per cent of the capacity is based on old wet and semi-dry
cement plants and thereby reduction in emission level. One project for co-
implemented with Japanese assistance under Green Aid Plan. The induction of
advanced technology has helped the industry immensely to conserve energy and
fuel and to save materials substantially. India is also producing different varieties
(PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid
The Indian cement industry has grown remarkably in the last two decades to
emerge as the second largest in the world after china. In terms of technology ,
top. Today, the country has 134 major plants with an installed capacity of 146.71
million tones. There are also 60 surviving mini and tiny units with a capacity of
6.3 million tones . The combined capacity of the cement industry is 153.01
million tones . in recent years , the production of blended cement has increased
in India as more and more companies shifting their emphasis from opc to
blended cement.
companies.
Today, the Indian cement industry is passing through are alignment and
consolidation . Multi nationals have a strong entry in the cement market and are
The per capita consumption of cement in India, which currently is very low
at 99 kg, has huge scope of growth . according to industry sources with the
J.K. Cement is an affiliate of the J.K. Organization, which was founded by Lala
a single kiln with a production capacity of 0.3 million tons. We added a second
kiln in 1979 with production capacity of 0.42 million tons, and a third kiln in 1982
capacity of 0.4 million tons in 1988, which increased our capacity at Nimbahera
to 1.54 million tons. During the years 1998 through 2003, we continued to
We commissioned a second grey cement plant at our Mangrol plant in 2001, with
aggregate production capacity of 3.55 million tons per annum of grey cement.
Our white cement plant was completed in 1984 with a capacity of 50,000 tons.
Our continuing modifications to the plant have increased its production capacity
India. We are also the second largest white cement manufacturer in India by
production capacity. While the grey cement is primarily sold in the northern India
market, the white cement enjoys demand in the export market including countries
like South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri Lanka, Kenya,
Our access to high quality limestone reserves that are suitable for production of
2001, our limestone reserves for both grey and white cement are expected to
meet our existing and planned limestone requirements of 4.0 MnTPA of grey
Grey cement produced by us consists of OPC and PPC. There are also other
cements in the market that we do not produce, such as Portland slag cement, oil
well cement, sulphate resistant cement, rapid gardening cement, low alkali
cement, low heat cement and super finish cement.OPC has three grades that we
mega pascals (“MPa”), as specified by the BIS.These grades are 53-grade OPC,
43-grade OPC and 33-grade OPC, with 53-grade OPC having the highest
compressive strength.The customer selects the grade of OPC based on the
cement, with 53-grade cement being used in applications which require high
strength characteristics.
kiln with gypsum. Each metric ton of OPC requires approximately 0.95 metric
tons of clinker and approximately 0.05 metric tons of gypsum. The range of
such as pre-stressed concrete and certain pre-cast concrete items requiring high
significant amount of power, finer grinding for the 53-grade OPC requires more
We also manufacture PPC (IS:1489 (Part-1) – 1991) under the brand name J.K.
Super. PPC is also known as blended cement or silicate cement, and this
blended cement has become increasingly popular in the market in recent years.
Each ton of PPC requires approximately 0.75 tons of clinker, 0.05 tons of
gypsum and 0.20 tons of fly ash, a pozzolanic material that is a by-product of
replaced with fly ash. This enables the cement manufacturer to produce a higher
quantity of cement per ton of clinker. As a result, the cement manufacturer can
equipment such as kilns.Further, the only cost incurred for fly ash is
transportation cost from the thermal power plants that generate it to the cement
manufacturing site, as fly ash is currently available free of cost. The use of fly ash
The advantage of PPC is its low heat of hydration and corresponding resistance
particularly suitable for marine and hydraulic construction and other mass
concrete structures. This cement has durability that is equivalent to OPC and can
be used most of the applications where OPC is used. As PPC is generally sold at
lower, PPC’s margins per ton are generally higher compared to OPC.
White cements
We manufacture white cement under the brand names J.K. White and Camel.
distinguished from grey cement by its white colour. Each ton of white cement
requires approximately 1.33 tons of limestone, 0.02 tons of gypsum and 0.2 tons
and fluorspar.
White cement is typically used in three principal areas of application, as set forth
below:
• Flooring, for the manufacturing and laying of mosaic tiles and as tile fixing grout,
wall applications, such as decorative white cement paints and plain and spray
plasters; and
White cement is typically used in three principal areas of application, as set forth
below:
• Flooring, for the manufacturing and laying of mosaic tiles and as tile fixing grout,
wall applications, such as decorative white cement paints and plain and spray
plasters; and
furniture, lamp posts, as pointing for brick and stone works and as pre-cast
cladding panels.
We sell white cement primarily in the Indian market. We also export white cement
Bangladesh, Sri Lanka, Kenya, Tanzania, United Arab Emirates and Nepal.
facility at Gotan in the state of Rajasthan. Our plants have obtained many
and ISO-14001:2004 EMS for the grey cement facility at Nimbahera and ISO-
Health and Safety for the white cement facility at Gotan. The construction of our
first most modern dry cement plant began in 1970 in Nimbahera in Rajasthan.
MnTPA. In the year 1979, second production line was added to enhance the
production line taking the production capacity to 1.14 MnTPA. In 1988 a pre-
calciner was installed and the production capacity touched 1.54 MnTPA.
2.8 MnTPA
The production process for cement consists of drying, grinding and mixing
limestone and additives like bauxite and iron ore into a powder known as “raw
meal”. The raw meal is then heated and burned in a pre-heater and kiln and then
clinker. Clinker (95%) is cooled by air and subsequently ground with gypsum
(5%) to form Ordinary Portland Cement (“OPC”). Other forms of cement require
increased blending with other raw materials. Blending of clinker with other
end use. The basic differences between these processes are the form in which
the raw meal is fed into the kiln, and the amount of energy consumed in each of
the processes. In the dry process, the raw meal is fed into the kiln in the form of a
dry powder resulting in energy saving, whereas in the wet process the raw meal
is fed into the kiln in the form of slurry. There is also a semi-dry process, which
consumes more energy than the dry process but lesser than the wet process.
The basic steps involved in the production process is set out below:
Dry process
All J.K. Cement plants are dry process plants. Limestone is crushed to a uniform
and usable size, blended with certain additives (such as iron ore and bauxite)
and discharged on a vertical roller mill, where the raw materials are ground to
fine powder. An electrostatic precipitator dedusts the raw mill gases and collects
the raw meal for a series of further stages of blending. The homogenized raw
meal thus extracted is pumped to the top of a preheater by air lift pumps. In the
present are reduced to oxides) and is then fed to the kiln. The remaining
calcination and clinkerization reactions are completed in the kiln where the
cooled and conveyed to the clinker silo from where it is extracted and transported
to the cement mills for producing cement. For producing OPC, clinker and
gypsum are used and for producing Portland [Pozzolana] Cement (“PPC”),
clinker, gypsum and fly ash are used. In the production of Portland Blast Furnace
Stag Cement (“PSC”), granulated blast furnace slag from steel plants is added to
clinker.
Architecture was more or less identified with housing & more so with elite
housing. However, many countries have used architecture effectively for public
structures also, such as highways, metro rails, factories, harbours & any other
in their designs.
The subject of challenges to architecture vis-a-vis town planning, infrastructure
J.K. Cement Ltd., thought that we could contribute to this cause by encouraging
thereby set an example for others in this profession to do better & better.
This is how Architect of the Year Award (AYA) began way back in the year 1990
architects of neighbouring countries from the year 1996 (7th Architect of the Year
also introduced from the award year AYA-98 (9th Architect of the Year Award)
Quality policy
Technologies change, needs change, and in turn products change. What remain
unchanged, are values and ideas that propel any entity forward. Ideas that are
the environment & provide new opportunities for the underprivileged in that
region.
4. To ensure that every department of our every office encourages new & better
ideas and freedom of expressing the same, and cultivate a work environment
5. To motivate every team member to challenge his last best performance and
out do it continually
6. To remain abreast and imbibe the latest technological trends for the benefit of
our customers.
The rationale of the study
This topic was chosen mainly to find whether the customers who buy JK
the quality of the cement and for this purpose people from different strata were
chosen like general customers, dealers, masons, bulk consumers etc…
interviews and telephonic interviews to know about the customer mood and the
I have also tried to find the market potential of jk cement in Delhi and NCR. For
this I had conducted market research in different parts of Delhi like Sarita vihar ,
For this I met different dealers , retailers and masons as well as industrial bulk
This study includes direct interaction with the customers and this helps us to
know the ‘Market potential and customer satisfaction level ‘to great
accuracy. This study is of great importance to the company which will know
1. Price factor
3. setting time
4. attractive packaging
7. wide availability
primary objective…
Objective of the study:-
Main objective:- The main objective of this study is to find out the MARKET
Specific objectives:- The specific objectives will be met by finding the customer
satisfaction level through direct interaction with the customer and by knowing
their preference. This will include all the processes like asking questions from
the customers through questionnaire which will be included in the primary survey
. once the primary survey is done , secondary survey will be done . The path of
the secondary survey will be decided depending on the conclusions coming out
Telephonic interview.
1. Masons—20%
3. Retail stockiest---- 2
4. Wholesale---- 10%
the researcher with the help and proper consultation of project guide..
In this kind of sampling method , the population elements are based on the
appropriate.
In this survey , I visited the dealers of cement also to know the strategy of the
Strengths :
operated at the highest levels of capacity utilization among India’s five regions.
We believe this reflects the strong demand in Northern India for cement products
at high utilization levels and anticipate continued strong demand for our grey
cement products in the near and medium-term. We believe that we are well
positioned to take advantage of this demand, as the fourth largest grey cement
manufacturer in Northern India, and the largest grey cement manufacturer in the
state of Rajasthan.
White cement accounted for 16.6% of our total cement revenue and
35.2% of adjusted EBITDA from our cement operations in fiscal 2005, and
15.5% of revenues and 26.7% of our adjusted EBITDA from our cement
operations in the six months ended September 31, 2005. Unlike grey cement,
the white cement industry in India is highly concentrated with the two largest
Consequently, prices of white cement have been relatively less volatile and
sales of white cement have generated more stable cash flows for us even
during industry downturns in grey cement. We also believe our position as the
JK Cement.
We have access to large reserves of limestone for both our grey and white
mines during 1996 to 2001, we believe that our limestone reserves are
renew our existing leases upon their expiry) As one of the first cement
India, and JK White (“Camel”), for white cement across India. Further, we
believe that our brand name and our reputation for consistently supplying
also have a strong all-India distribution network for white cement. Our distribution
network for grey cement products consists of 44 feeder depots serviced by seven
Madhya Pradesh and Gujarat. Our white cement network comprises 20 feeder
retail stores that stock our grey and white cement products, as well as 22 sales
promoters and four handling agents. We believe that the extent of this network,
and our relationships with our dealers, enables us to maket and distribute our
capacity quickly and reduce costs. Over the years, we believe that we have
Nimbahera by more than 80%, from 1.54 million tons in 1998 to 2.8 million tons
Weaknesses :
INDIA.
3. No high revenue from the white cement market because there are only
two players who have considerable market share and this has resulted in
5. It has its own mines reserves but it has to consistently renew the lease
site.
Opportunities :
4. It has major opportunities in real estate industry due to boom in the related
projects.
2. Presence of other big players in delhi region is a major threat for the
company.
1.SEGMENTATION:-
PRICING STRATEGY
Cost factor:-
Manufacturing cost
Transporting cost
Other cost
Officer expenses
Other expenses
Company always keeps an eye over its competitors activities and its
offerings like different promotional schemes, product price etc. It also takes
DISTRIBUTION STRATEGY
Direct to consumer
Depot
1.whole seller
2.retailer
Director General of sales and disposal
1. Tender sales
2. Government department
1 wagon load
2. Institutional sales
advertise the programmer. The company takes profile of the dealers and
gives dealership only to those in a particular area where the company is not
MARKETING STRATEGIES
capacity. Besides handling their constructional problem the cell offering all
kind of assistance in the selection of the right cement for different application
In this section , we will analyze the data which was obtained through different means of
data analysis like questionnaire, personal interviews. Since this survey was related to
the cement industry, so people related to it like masons, bulk consumer , retailer and
The whole data analysis section is done with help of different charts, bars
and other techniques available. The interview was mostly done on selected
persons of selected category. I have done survey mainly on the basis of following
structure…..
1. Masons—20%
2. Arch/ Engineers—10%
3. Retail stockists--- 20%
4. Wholesalers--- 10%
5. Bulk consumers—10%
6. General consumer—30%
The main purpose of this survey was to know the customer satisfaction
level
. This survey was done partially DELHI and somepartsd of NCR also. Some
other parts of the country like the neighboring UP was also touched for the
survey.
DATA ANALYSIS
This page and onwards will contain step by step analysis of different
questions…
1. MASONS
Importance of price
respondents
4
3
no of
2
1
0
Extremely Rarely important Not at all
important important
choices /options
2. Arch / engineers
Options / choices No of respondents
1.Extremely important 2
2.Rarely important 1
3.Not at all important 0
2
1.5
1
0.5
0
Extremely Rarely Not at all
important important important
1. Masons
colour of cement
5
4
no of
3
responde
2
nts
1
0
Definitely sometimes
important important
choices
2. Retail stockists.
Options No of respondents
1.definitely important 1
2 .not so important 2
3.sometimes important 1
4. not sure 1
Definitely important
Not so important
sometimes important
Not sure
3. General consumer
Options No of respondents
1.Definitely important 1
2.Not so important 4
3.sometimes important 1
4.not sure 1
Importance of colour
4
No of
2
respondents
0
Definitely Not sure
important
Parametrs
No of respondents
Parameters
1.Important 1
2.Not important 0
3.Extremely important 2
4.Not sure 0
1.5
0.5
0
Important extremely
important
3. Retail stockiest
No. of respondents
Parameters
1.Important 1
2.Not important 0
3.Extremely important 3
4.Not sure 1
Important
Not important
extremely important
Not sure
4.General consumer
Parametrs
No. of respondents
1. Important 2
2. Not important 1
3.Extremely important 4
4. Not sure 0
4
3
2
1
0
Important Not extremely Not sure
important important
The above interpretation clearly indicates that early setting time is one of the
important factor with all group of people giving more weightage to it.
1. Retail stockiest.
Parametrs
No of respondents
1. Very much 2
2. Not so much 2
3. Can’t say 1
2.5
2
1.5
1
0.5
0
very much not so much cant say
2. Whole salers
Parametrs
No. of respondents
1. Very much 1
2. Not so much 1
3.Can’t say 1
1.5
1
Series1
0.5
0
very much not so much cant say
3. General consumer
Parameters
No of respondents
1.Very much 2
2. Not so much 4
3.cant say 1
5
4
3
2
1
0
very much not so much cant say
The response to this question clearly indicates that people do not tend to buy
those cement which have good and attractive packaging as after all quality
matters.
Parameters
Brand Brand Delivery Price Packaging
name image time
ACC 4 3 3 4
GUJ 3 3 3 3
AMBUJA
SATNA 3 2 3 2
CEMENTS
LAFARGE 4 3 3 3
It is evident from the table that ACC and LAFARGE excel on every
parameter i.e. brand image, delivery time, price and packaging etc…
.
Brand image and price are one of the important factors in the selection of
any Cement.
Q5. Do you prefer the cement which is very fine (i.e. fineness of the cement)?
1. Masons
Parametrs
No of responses recieved
1. Sometimes 1
2. Always 2
3. Never 1
4.Can’t decide 1
2.5
2
1.5
1
0.5
0
Sometimes Always Never Cant decide
2. Retail stockiest
Options
Response
1. Sometimes 1
2. Always 3
3. Never 1
4.Cant decide 0
Sometimes
Alw ays
Never
Cant decide
3. General customer
Choices / options
Responses
1. Sometimes 3
2. Always 3
3.Never 1
4.Cant decide 0
3.5
3
2.5
2
1.5
1
0.5
0
Sometimes Always Never Cant decide
We can interpret from the response received that fineness of the cement is one of the
Important factor that consumer takes into account while buying a cement.
Q6. How many retailers of Ambuja Cement do you find in your city?
1. Masons
No. of retailers
Response
1 . 1-5 2
2. 5-7 3
3. 7-10 0
4. More than ten 0
no. of retailers
4
3
2
1
0
one-five five-seven seven -ten more than 10
2. Wholesalers
Options
NO. Of responses
1. 1-5 1
2.5-7 2
3.7-10 0
4. more than 10 0
3
2
1
0
one-five five-seven seven -ten more than 10
The response received from the customers indicate that there are enough
cement retailers in their city.
7. If you were a dealer Which type of schemes and incentives do you except
from the company?
Options
No of responses
1. Gift items given 1
2. Award for best retailing 2
3.Promoting certain incentive 0
schemes
4.Educate about the 0
company’s policy
5. Foreign tours 2
It is evident that the retailers want awards, tours and gifts on equal basis.
2.5
2
1.5
1
0.5
0
gifts items awards incentive education foreign tours
schemes
1.Masons
Options
Responses
1.sometimes 2
2.Always 2
3.Never 1
sometimes
always
never
options
No. of respondents
1. Sometimes 1
2.Always 2
3.Never 0
2
1.5
1
0.5
0
sometimes alw ays never
3. General customer
choices responses
1. sometimes 2
2. never 1
3. always 4
5
4
3
2
1
0
sometimes never always
1.General customer
Options
Level of responses
1. Newspapers 2
2.Hoardings 3
3. TV ads 1
4. Meeting with dealers 1
3.5
3
2.5
2
1.5
1
0.5
0
newspaper hoardings tv ads meeting
with dealers
2. Industrial bulk consumer
options
No of
respon
dents
1.Newspaper 0
2.Hoardings 1
3.Tv ads 0
4.Dealers meet 2
newspaper
hoardings
tv ads
meeting with dealers
Analysis of this question reveals that hoardings are the best means of the
communication as any illiterate person can also read the various signs which
could be there on the hoardings….. and also there should be regular dealer
meeting to know the customer aware of the cement…
Q9. Do you find compressive strength of the cement as a major factor while
buying any cement?
1. Masons.
Options
Response rate
Very much 3
Not much 2
Cant decide 0
3.5
3
2.5
2
Series1
1.5
1
0.5
0
very not much cant
much decide
2. General customer
Options
Response level
Very much 5
Not much 1
Can’t decide 1
6
5
4
3
2
1
0
very much not much cant decide
Analysis of this question reveals that customers don’t comprise on the matter of
quality…
1. Wholesalers
Parameters
Response level
1. Satisfactory 1
2.Good 1
3. Not so good 1
4. Not sure 0
2. General customer
Parameters
Response level
1. Satisfactory 3
2 Good 2
3. Not so good 1
4. Not sure 1
Chapter –6
Limitations
This survey was conducted partially in DELHI , northern part of India and
some parts of UP. So market potential of the JK cement in other parts of the
country couldn’t be determined.
The questionnaire did not cover the whole aspect of the market potential of JK
cements limited.
Findings
On the basis of analysis of the questionnaire and data analysis, we find that:----
1. Market potential of the Jk cement limited is very good in the northern parts
3. Despite the increasing cost of the raw material the company is able to bring
4. Customers want more prizes and dealers want more incentives , gifts and
tours.
Dealers also want more meeting with officials of the cement companies.
2. The company should launch more and more promotional schemes like “ two
4. Customer prefer price as an important factor while buying any cement so the
5. Company should concentrate on direct meeting with the customer as they are
the most vital element in deciding the growth or decline of any company.
7.The company should fix certain amount of cement especially for the dealers
8. The company should appoint more and more persons for the promotions of the
brand.
9. The company should expand its market and concentrate in deep penetration in
1. www.jkcement.com
2. www.jk-white.com/