A

PROJECT REPORT
ON
“PRESENT SCENARIO OF CEMENT
CONSUMPTION IN THE AREA OF PATNA
REGION”
FOR
ACC CEMENT PVT. LTD.

SUBMITTED TO
REGIONAL COLLEGE OF MANAGEMENT
AUTONOMOUS

SUBMITTED BY
VISHAL KUMAR
PGDM (2009-2011)
REGIONAL COLLEGE OF MANAGEMEN
AUTONOMOUS BHUBANESWAR

1
 CERTIFICATE

This is to certify that Project Report title

“PRESENT SCENARIO OF CONSUMPTION
OF CEMENT IN THE AREA OF PATNA
REGION” for acc cement pvt. Ltd. is a
bonafide work carried out by vishal Kumar of
PGDM of Regional college of management
autonomous, Bhubaneswar for fulfillment of
PGDM degree. He has worked under our
guidance and direction.

Signature of Guide with seal

Date:
Place:

2
 ACKNOWLEDGEMENT

“Interdependence is a higher value than independence”

Knowledge in itself is a continuous process. Nevertheless,

a day getting a practical knowledge is an important thing
& most important thing is the support, guidance,
motivation and inspiration provided by the different
persons of different sections. At this moment of our
substantial enhancement, I find no words to express my
gratitude towards those who helped me directly or
indirectly in making this report successful. I am indebted
& thankful for the assistance received from various
individuals.

So, I would like to thank all those people who have

contributed to this project directly and indirectly from the
very beginning till its successful completion.

This project report could not have been completed

without guidance of our Prof. Prabhuram Tripathi.

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 I extended my sincere gratitude to Mr. R.N. SINHA sales
head and MR.T. A. KHAN manager sales of the ACC
cement Pvt. Ltd in Patna sales unit. For his constant and
able of guidance has been instrumental in large measure
on the success of project.

He suggest this study, and it has been great opportunity to

learn about a subject of which had no previous knowledge
for this, I am very grateful to him.

I would like to extend my thanks to all the respondents

who patiently answered to all my queries and cooperated
with us and provided me with all the valuable information
that, I needed for my project study.

Last but not least I would like to thanks my faculties &

colleagues who guided me for project completion.
VISHAL KUMAR
And
RAJ KUMAR

QUESTIONNAIRE
4
 A STUDY ON CEMENT CONSUMPTION IN BIHAR

1. NAME: -

2. SEX: - MALE FEMALE

3. AGE GROUP:-
BELOW 30 30 - 45 YEAR 45 – 60
ABOVE 60

4. ORGANISATION:-

5. DESIGNATIONS:-

6. NAME OF THE PROJECT:-

7. AREA UNDER CONSTRUCTION:-

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8. WORK DURATION:-

9. WHICH CEMENT YOU USE IN THIS PROJECT?

LAFARGE BANJARA DUNCON
ULTRATECH K C SUPER GRASIM
ACC JAYPEE AMBUJA
BIRLAGOLD KONARK CENTURY

10. WHY YOU USE THIS CEMENT? DUE TO IT’S ………

PRICE AVAILABILITY SUPPLY
PACKAGING APPROACH SETTING

11. ARE YOU SATISFIED WITH THEIR DELIVERY

TIME?
YES NO

12. WHAT IS THE AVERAGE MONTHLY CONSUPTION

OF CEMENT?

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13. WHICH QUALITY OF CEMENT IS USED IN THIS
PROJECT?
OPC PPC PSC

14. MENTION THE OTHER CEMENT COMPANIES WHO

HAVE APPROCHED FOR THIS PROJECT…..

15. FROM WHERE DID YOU GET THIS CEMENT?

FROM DEALER DIRECTLY FROM THE
FACTORY

16. AT WHAT PRICE YOU GET IT?

17. ANY FORTH COMING PROJECT:-

SIGNATURE
:-

7
 INDEX

CHAPT NAME OF CHAPTER PAG

ER E
NO.
NO.
1. EXECUTIVE SUMMARY 9
2. RESEARCH AND DESIGN 10-
14
3. COMAPNY PROFILE 15-
16
4. HISTORY 17-
19
5. PRODUCT 20-
23
6. RESEARCH METHODOLOGY 24-
26
7. ANALYSIS AND 27-
INTERPRETATION 31
8. FINDING 32-
33

8
 9. SWOT ANALYSIS 34-
37
10. SUGGESTION 38-
39
11. CONCLUSION 40
12. LIMITATION OF THE STUDY 41
13. REFERENCE 42

EXECUTIVE SUMMARY

The project was carried out for ACC Cement Pvt. Ltd. at
Patna region.

OBJECTIVE

The objective was carried out for a main objective, which

was carried out through the market survey for knowing
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prevailing market condition of ACC Cement in Patna
market.

RESEARCH METHODOLOGY

The descriptive nature of the research necessitated

collection of primary data from site managers of the
construction site. Personal interview technique is the
method which is used in this research. Interviews were
conducted through the “structure questionnaire”.

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 RESEARCH AND DESIGN:

• INTRODUCTION TO THE TITLE

• OBJECTIVES OF THE PROJECT

• SCOPE OF THE STUDY

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 INTRODUCTION TO THE TITILE

Today Patna is changing very fast. Every corner of Patna

is having some construction work which will be finished
within 2 years. In this construction work cement is the
main ingredient and it is consumed on mass level. Every
major player is looking to grasp the Patna’s cement
market. It is estimated that the present market potential of
Patna is near about 60000 metric tons in the private as
well as in government sector.
This project was carried out in the market of Patna of
Bihar state. There are five market players in cement
industry. They are Ultratech, ACC, K C super, Lafarge,
Birlagold, apart from these there are few local brands
selling in the market.

The information about the market was gathered by

visiting sites in the different location in Patna. Interview
of sites manager was taken depending upon their
accessibility.

While doing the project, attempt was made to collect

maximum information about the market. To get actual
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and correct information, it was not told site managers that
the survey is conducted by ACC Cement for the obvious
reasons. Number of sites was visited to get the actual
picture of the market. The sites of each grade (according
to the performance) were visited, to get each and every
detail about the market.

Most of the time was spent in traveling from one site to

other. And every time it is not necessary that we get the
response from them. They were reluctant to give the
information, as they do not want to disclose their business
details. They were not ready to give the detail about the
price at which they were purchase the cement. Visits to
such sites were loss of time, money and energy.
After collecting the detailed information about the
market, analysis is done. In the analysis, the observations
recorded during the project were carefully analyzed and
the results are prepared. The findings and result of the
project work are given at the later stage in the report.

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 OBJECTIVE OF THE PROJECT
This project was undertaken for an objective which was

• To carry out market survey to know the prevailing

market condition of ACC cements Pvt. Ltd. in Patna
(Bihar).

To attain this objective various other sub objectives

are needed to be achieved. These are listed below:-

• To analyze the market share of ACC Cement in

Patna market.

• To know the customers preference for the brands of

cement.

• To know the preference of builders for sorting

different brands of cement.

Thus it attempt to find ways to increase market share, to

increase customer satisfaction and thus increase the
business prospects.

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 SCOPE OF THE STUDY
1. The study has been done for the Cement so more or
less it helps in understanding the consumer preference
towards the cement market.

2. The study can help in analyzing certain weak point,

improving on which a company can overcome the low
sales of its cement but only in Patna region.

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 PROFILE

ACC – India’s first name in cement

ACC cement is India's foremost manufacturer of cement
and concrete. ACC's operations are spread throughout the
country with 16 modern cement factories, more than 40
Ready mix concrete plants, 20 sales offices, and several
zonal offices. It has a workforce of about 10,000 persons
and a countrywide distribution network of over 9,000
dealers.

Since inception in 1936, the company has been a

trendsetter and important benchmark for the cement
industry in many areas of cement and concrete
technology. ACC has a unique track record of innovative
research, product development and specialized
consultancy services. The company's various
manufacturing units are backed by a central technology
support services centre - the only one of its kind in the
Indian cement industry.

ACC has rich experience in mining, being the largest user

of limestone. As the largest cement producer in India, it is
one of the biggest customers of the domestic coal
industry, of Indian Railways, and a considerable user of
the country’s road transport network services for inward
and outward movement of materials and products.

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Among the first companies in India to include
commitment to environmental protection as one of its
corporate objectives, the company installed sophisticated
pollution control equipment as far back as 1966, long
before pollution control laws came into existence. Today
each of its cement plants has state-of-the art pollution
control equipment and devices.

ACC has made significant contributions to the nation

building process by way of quality products, services and
sharing expertise. Its commitment to sustainable
development, its high ethical standards in business
dealings and its on-going efforts in community welfare
programmes have won it acclaim as a responsible
corporate citizen. ACC’s brand name is synonymous with
cement and enjoys a high level of equity in the Indian
market. It is the only cement company that figures in the
list of Consumer Super Brands of India.

HISTORY
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ACC CEMENT has an interesting story - one that
inspired a book. ACC was formed in 1936 when ten
existing cement companies came together under one
umbrella in a historic merger -the country's first notable
merger at a time when the term mergers and acquisitions
was not even coined. The history of ACC spans a wide
canvas beginning with the lonely struggle of its pioneer
F.E Dinshaw and other Indian entrepreneurs like him who
founded the Indian cement industry. Their efforts to face
competition for survival in a small but aggressive market
mingled with the stirring of a country's nationalist pride
that touched all walks of life - including trade, Commerce
and business.

The first success came in a move towards cooperation in

the country's young cement industry and culminated in
the historic merger of ten companies to form a cement
giant. These companies belonged to four prominent
business groups - Tatas, Khataus, Killick Nixon and F E
Dinshaw groups. ACC was formally established on
August 1, 1936. Sadly, F E Dinshaw, the man recognized
as the founder of ACC, died in January 1936; just months
before his dream could be realized.

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 F. E. Dinshaw – the founder of ACC
ACC stands out as the most unique and successful merger
in Indian business history, in which the distinct identities
of the constituent companies were melded into a new
cohesive organization - one that has survived and retained
its position of leadership in industry. In a sense, the
formation of ACC represents a quest for the synergy of
good business practices, values and shared objectives.
The use of the plural in ACC's original name, The
Associated Cement Companies Limited, itself indicated
the company's origins from a merger. Many years later,
some stockbrokers in the country's leading stock
exchanges continued to refer to this company simply as
'The Merger'.

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Holcim – A New Partnership:
A new association was forged between ACC and The
Holcim group of Switzerland in 2005. In January 2005,
Holcim announced its plans to enter into long – term
alliances with Ambuja Group by acquiring a majority
stake in Ambuja Cements India Ltd. (ACIL),which at the
time held 13.8% of total equity shares in ACC. Holcim
simultaneously announced its bid to make an open offer
to ACC shareholders, through Holdcem Cement Pvt. Ltd.
and ACIL, to acquire a majority shareholding in ACC. An
open offer was made by Holdcem Cement Pvt. Ltd. along
with ACIL, following which the shareholding of ACIL
increased to 34.69% of Equity share capital of ACC.
Consequently, ACIL has filed declarations indicating
their shareholding and declaring itself as a promoter of
ACC.

Holcim is the world leader in cement as well as being

large supplier of concrete, aggregates and certain
construction related services. Holcim is also a respected
name in information technology and research and
development. The group has its headquarters in
Switzerland with worldwide operations spread across
more than 70 countries.
Considering the formidable global presence of Holcim
and its excellent reputation, the broad of ACC has
welcomed this new association.

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 PRODUCTS
The company manufactures Portland cement for general
construction while its blended products, acknowledged
for outstanding durability, include fly ash and slag-based
cements. Both these varieties of cement offer high quality
and special properties that defy the harshest
environments. In addition to conserving valuable mineral
resources and reducing waste, these blended cements also
help cut down the emission of carbon dioxide and assist
in checking global warming. ACC is sensitive to
consumer needs. When the company realized that large
construction activities would require large amounts of
cement it set up the country’s first facility for distribution
of cement in bulk, as far back as 1956.To meet the needs
of other consumers it introduced cement in small 25
kilogram bags as also jumbo bags of one metric tons.
Today, of course, mechanized mega construction projects
receive cement from ACC delivered in bulk tankers – a
welcome change from the conventional cement bag. ACC
was also the first company in India to introduce Ready
Mix Concrete on a commercial basis. A transit concrete
mixer is now a familiar sight in India’s major cities.
Ready Mix Concrete and Bulk Cement have enabled the
construction industry to introduce sophisticated practices
for the speedy completion of large infrastructure projects.

ACC manufactures the following types of cement, in

addition to which, it provides Bulk Cement.
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 Ordinary Portland Cements
43 Grade Cement (OPC 43 Grades)
ACC Cement is the most commonly used cement in all
constructions including plain and reinforced cement
concrete, brick and stone masonry, floors and plastering.
It is also used in the finishing of all types of buildings,
bridges, culverts, roads, water retaining structures, etc.
What is more, it surpasses BIS Specifications (IS 8112-
1989 for 43 grade OPC) on compressive strength levels.
ACC Cement is marketed in specially designed 50 kg
bags.

53 Grade Cement
This is an Ordinary Portland Cement which surpasses the
requirements of IS: 12269-53 Grade. It is produced from
high quality clinker ground with high purity gypsum.
ACC 53 Grade OPC provides high strength and durability
to structures because of its optimum particle size
distribution, superior crystalline structure and balanced
phase composition.
It is available in specially designed 50-kg bags·

Portland Pozzolana Cement

This is special blended cement, produced by inter-
grinding higher strength Ordinary Portland Cement
clinker with high quality processed fly ash - based on
norms set by the company's R&D division. This unique,

22
value-added product has hydraulic binding properties not
found in ordinary cements.
It is available in specially designed 50-kg bags.

Portland Slag Cement

This is slag-based blended cement that imparts strength
and durability to all structures. It is manufactured by
blending and inter-grinding OPC clinker and granulated
slag in suitable proportions as per our norms of consistent
quality. PSC has many superior performances
characteristics which give it certain extra advantages
when compared to Ordinary Portland Cement.
It is available in specially designed 50-kg bags.

Bulk Cement
Yet another first in our seven-decade history of cement in
India has been the introduction of Bulk Cement, an
alternative to bagged cement, which is of particular
advantage to large consumers of cement. Internationally,
the trend is to move cement more and more in loose form
rather than bagged. In fact, over 90 percent cement in the
USA, and other European countries is transported and
sold in bulk, unlike in India, where only one percent is
transported in bulk.

ACC CEMENT PLANTS ACROSS INDIA

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Corporate office-Mumbai (Maharashtra)

Regional Offices
· Eastern region-Kolkata
· Northern region-new Delhi
· South and west region-Pune

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S. NO. UNITS STATE CAPACITY(MTPA) PROCESS USED

1. GAGAL HIMACHAL PRADESH 4.40 DRY

2. TIKARIA UTTER PRADESH 2.31 GRINDING UNIT

3. LAKHERI RAJASTHAN 1.50 DRY

4. KYMOR MADHYA PRADESH 2.20 DRY

5. CHAIBASA JHARKHAND 0.87 DRY

6. SINDHRI JHARKHAND 0.91 GRINDING UNIT

7. JAMUL CHATTISGARH 1.58 DRY & SEMI DRY

8. CHANDA MAHARASTRA 1.00 DRY

9. WADI KARNATKA 2.59 DRY

10. MACHERIAL ANDHRA PRADESH 1.94 GRINDING UNIT

11. MADUKKARAI TAMIL NADU 0.96 SEMI DRY

PLANTS AND THEIR CAPACITY:

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 RESEARCH METHODOLOGY

The research methodology is the way which

systematically solves the research problems. The main
objective of the project was to know the market condition
of ACC Cement. For this, right at the beginning the
research plan was prepared. This includes all the detail of
how to go about research work of ACC Cement.

Research Plan
Definition of research plan:-
The research plan can be defined as follows:-
1. What are the cement being used by various customer in
the region of Patna and what are their expectation from
the cement?
2. What is the market condition of ACC cement in Patna
region?

Data Collection

The descriptive nature of research necessitates collection

of primary data from site managers/builders through

26
market survey technique which were conducted through
structured questionnaire. The questions were asked in
prearranged manner. The market research was conducted
over a period of 30-35 days. Data was tabulated, analyzed
and suggestions were given.

Research Instruments

The Research instrument chosen for conducting the

survey was structured questionnaire, which was prepared
as shown earlier. The questionnaire designed and a pilot
survey was made with the questionnaire and then changes
were made accordingly with the questionnaire.

Sample Plan

A sampling technique was chosen for the study was

Random Sampling Technique. This is the most common
method of selecting the sample. This is because the
building sites are localized in different area of Patna. A
group of builders are chosen are random from large
group. It gives all builders in a group and equal chance of
being selected for the purpose of the survey.

Sample Size

Out of nearly 200 buildings site in the region of Patna,

around randomly 50% of total population was considered
as the sample size.
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Contact Method
Personal interview is used for conducting the market
survey. Personal interview was conducted with the
structured questionnaire. Personal interview had the
benefit of one to one communication between the
researcher and the respondent. If the respondent is having
any doubt or queries in their mind, they can get their
doubts clarified from the researcher on the spot and so
superior data were collected from the survey.

Analysis And Information

Detailed information was collected for the project through

the market survey to know the ACC condition in the
region of patna. The information was collected by visiting
the builders/site managers present in Patna region. The
interview of builders/site managers were taken in a
friendly atmosphere so as to encourage them to give right
information, without any hesitation.

Analysis

The analysis of the collected information was made in

scientific manner.

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ANALYSIS

&
INTERPRETA
TION

29
Which Cement Builders Use In Their Project?

Analysis And Interpretation:-

After this result we can say that, 80% builders in Patna
region are using branded cement whereas 20% of them
are using local cement. By seeing this chart we can also
say that Birla gold has captured the major market in the
Patna region.

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Why they use that cement?

Analysis And Interpretation:-

After this result we can easily say that most of the
builders in Patna region have to do nothing with, that
which brand they are using .And second most important
decisive factor is the price of the cement.

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Which quality of cement they use in their project?

Analysis And Interpretation:-

By seeing this chart we can directly say that in Patna
region PSC cement is used on mass level.

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From Where Did They Get This Cement?

Analysis And Interpretation:-

Generally huge number of builders is getting their cement
directly from the warehouse. This indicates that there is
huge difference of price of cement between dealer and
warehouse.

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 FINDING

After having rigorous time we come to almost last part of

this project. There are some positive as well as negative
points for India’s own cement company, “ACC”.

ACC has very good grasp over Indian cement market, but
if we see in Bihar ACC seems to struggler with other
brand. In the process of completing this project we come
to know various regions beside this.

Some Of The Reasons Are Listed Below:-

➢ ACC has huge demand in the market which is very
good for company’s aspect, but it is not possible for
ACC to fulfill that demand, which leads to brand
switching. This is not good for company.

➢ In spite of its high price (as compared to other brand

and local brand) builders in Patna region is ready to
34
 pay that price but they were not able to get there
supply in time due to out of stock of ACC.

➢ In doing this project we come to know that ACC has

great demand for building private houses, as people
never compromises with quality. But as far as big
buyers are concern it seems opposite builders opt less
expensive cement or local brand.

➢ In analysis of one question of questionnaire we come

to know that most builders are ready to use any good
cement, they don’t have inclination toward any
particular cement.

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 SWOT ANALYSIS OF ACC CEMENT

“Strategy Is A Pattern In A Series Of Decisions Or Actions.”

- Henry Mintzberg (1994)

SWOT Analysis explores the relationship between the

environmental influences and the strategic capabilities of
an organization compared to its competitors. The
importance of SWOT is revealed by the value of the
strategies it generates. A SWOT item that generates no
strategies is not important.

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Strengths

➢ It is having a good image and brand loyalty among

consumers.

➢ Service is good.

➢ “Dhalai karne ke liye” people ask for ACC.

➢ Perceived to be of very superior quality, with high

price cement when compared to others.

➢ Selling form the very first day the shop came in to

being & sells easily.

➢ They have same price prevailing for wholesale at

dealers/stockiest retailers end.

Weakness

➢ The competitors are doing much promotional activity

rather than ACC Limited that’s why it facing more
problems in selling of product in the market.

➢ Lack of awareness program for consumers.

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Opportunity

➢ Rapid growth is taking place in Bihar, Madhya

Pradesh and Chhattisgarh.

➢ People are opting for more stable structures and

intensive use of cement is taking place, even
government is spending heavily on infrastructure
projects. Thus, this is the right time to fully tap these
markets.

➢ As Indian core industry is also growing at rate of

nearly 10% per annum, it is having a good future.

➢ Foreign direct investment in infrastructure sector

going to increase in coming years, which will
increase the demand of cement.

➢ Roads are undergoing through the transformation

process through which the traditional method of road
building will be replaced by modern concrete roads.

38
Threats

➢ Large number of players in cement industry makes it

more competitive for ACC to carefully price its
product and at the same time satisfy its dealers and
customers.

➢ Players such as Jaypee Cement, Prism Cement, and

other local brand are eating up considerable market
share.

➢ Due to India’s exponential growth many new

international cement companies are expected to
come in Indian market in coming years which will
bring a tide of change and can start price war. And
some south Indian companies are also coming in
Bihar and selling at very less price as compared to
ACC.

➢ The emergence of small players in this market may

increase the competition and start the malpractices,
and heavy discounts to retailers. They can also
influence many retailers by giving better profit
margin, and other benefits.

39
 SUGGESTIONS

A very exhaustive study has been made, keeping in the

essence of the objective of the project. With the efforts
put on the project a detailed analysis was conducted and
result were derived, based on the results and market
response few suggestions are discussed below

A high Price creates problems for builders as they cannot

always use such high price cement. So, in my opinion
company has to think over the price.

The reach to the rural market need to be strengthened.

Transportation to rural areas need to be strengthened, a
significant amount of business is lost because of this.

At time it has been seen that the delivery commitments

and the side of the company is not prompt, this creates a
bad name and again business is lost. Company has to

40
maintain its supply chain, so that they can fulfill the
demand.

On interviewing builders the most important thing they

said was about the price flexibility, they want that the
company should give the price flexibility to the
dealers/retailers to play in the market. (As the
dealer/retailer may give some discount and gift items to
them).

Company’s representative should approach the site

managers or the builders to encourage them to use their
product on the regular basis. And if it is possible offer
them some special discount or gift items for the bulk
buyers.

Company need to spend little more on the product

promotion because “JO DIKHTA HAI WAHI BIKTA HAI”.

41
 CONCLUSION

To attain the objective of the project, detailed information

was collected from the market of Patna. The market
research has revealed many facts and figures about the
cement scenario in the market prevailing.

In the market, ACC cement is well known brand of

cement. This is the result of the good quality of the ACC
which covers the whole satisfied market customers of
ACC, as they do not face any problem after using it.

There are five major players in the market but the major
competition is between the three brands of cement.

The market survey undertaken shows that effective

marketing efforts play a vital role in creating the goodwill
for the brand. The distribution channel of cement industry
must be well designed and made effective; this ensures
timely availability of cement to customers.

Good marketing creates good image i.e. brand building.

Even through after Holcim leader in world cement
industry take over the ACC cement, but still it has not
shown any decline in its status. ACC still cherishes the

42
good will created by them before merge to Holcim
cement in the market.
LIMITATION OF THE STUDY
1. Lack of cooperation from the builders/site managers
regarding giving interview.
2. It was found in some cases that builders/site managers
showed inclination towards certain brands which gave
them more margins when compared to others.
3. It was experienced during the survey that it was
difficult to convince or make the builders/site managers
understand the importance of the project.
4. As the builders/site managers thought that it was
unwise for them to give their details of business as they
feared competitors would take advantage.

43
 REFERENCE

Books:
1. Research Methodology: C.K. Kothari

2. Marketing Management: Philip Kotler

Websites:
www.acclimited.com

www.ibef.org/industry/cement.aspx

www.askwiki.com

www.acchelp.com

www.askacc.com

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