Documente Academic
Documente Profesional
Documente Cultură
G.D.MEMORIAL COLLEGE of
MANAGEMENT & Technology, JODHPUR
Preface
Classroom teaching helps the student by making conceptual base clear, but on the
job training is a way, which helps the students to get the applied knowledge of the
concept. Normally the students are not aware of the actual requirement of practical
field, keeping in view this fact; a system of summer training has been established to
make the students acquainted of actual difficulties that are to be faced in the
demanding corporate sector.
Acknowledgement
I would like to thank Shree Cement Ltd., Jhunjhunu for providing me with an
opportunity to work on my summer project.
I would like to thank my project guides Mr. Anil Kumar Tiwari and Mr. Vinod
Kumawat for providing me continuous guidance & support and for their valuable
inputs during the course of my project.
The staff at Shree Cement was very co-operative and helped me a lot by providing
required information whenever I needed it.
And finally I would like to thank the entire faculty at G.D.memorial college of
management $technology jodhpur for equipping me to carry out this study.
Contents
2) Introduction of Company
3) Project Title
4) Objective of Study
5) Scope of Objective
6) Research Methodology
8) Findings
10) Questionnaire
11) Bibliography
1. OVERVIEW OF CEMENT INDUSTRY
The history of cement is the voyage of civilization from primitive caves of pre-
historic 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.
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.
Infact, 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
instllation.
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.
“The first true Portland cement manufactured in India was made inculcate from
chalk, imported as ballast in sailing ships and mud from Hoogli River.” But
systematically, cement was manufactured in 1904 in Madras by the South India
industries ltd.(established in 1879). It used sea-shale and clay as raw material and
had the working capacity of 30 tones per day. Though its life span was short yet it
gave impetus to the growth of cement.
Industry and by 1912-13 the Indian cement co. limited was established at
Porbandar (Gujrat) with a production capacity of 100 tonnes per day. The
manufacturing of cement commenced in 1904. But the first bag of cement was
packed by the Indian cement company ltd. Porbandar (Gujrat) in October. After
some time, two more cement companies Katni Cement & Industrial Co. Ltd. Began
production at Katni (M.P.) and Lakheri (Rajasthan) respectively. The industries got
some stimulus during the First World War and that companies produced 8500 tones
of cement per year. The total capacity of all the nine factories in 1924 was still 5,
59,800 tones only.
For long, companies faced severe competition in the prevailing demand. This
resulted in the formation of cement manufacturers association (CMA) in 1923
whose function was to regulate cement prices.
The growth of industry took rapid strides during 1926-36, though the CMA solved
most of the problems, yet the consolidation takes needed the Herculean efforts. F.E.
Dinshaw (a leading industrialist) took control ten out of eleven units of ACC
(excepting sone valley). The object of amalgamation was not to attain a
monopolistic position, but to make and deliver cement as cheap as possible. The
objectives were materialized and cement was made available at then lowest
possible price. The Industry acquired greater efficiency, rendering the CMA
superfluous. ‘The cement making company of India’ becomes a subsidiary of ACC
in 1936. The ACC Limited was established on 1st August 1936 with it’s
headquarter at Bombay. This Lured Dalmia Jain group to enter the field with five
factories.
Meanwhile, many new companies were set up. The Assam Bengal Company set up
it’s factory at Chatak (Bengal) and the Kalyanpur line & cement works at Banjari
(Bihar) and Mysore Iron & Steel Co. Ltd. A public sector undertaking established
it’s factory at Bhadravati (Mysore). Similarly, Andhra Cement Company was
floated to set up a factory at Vijaywara (Andhra Pradesh).
By 1947, there were 23 cement factories in India with a total production capacity of
2.2 million tones, but owing to partition, 81.5% of the rated capacity along with
production 1.79 million tones went with India while the remaining was shared by
Pakistan.
In the beginning of the first five-year plan, there were 22 factories with a
production capacity of 3.2 million tones while actual production was 2.69 million
tones only. The target set for the first five-year plan was 5.02 million tones.
Therefore, capacity enhancement was main objective of this plan.
Due to the rising demand at end of the first five year plan period, Government
imposed a sort of control by issuing an order under section 18(g) of the industries
(Development and Regulation) Act, 1951 making it necessary for all cement
producers to sell their total production to State Trading Corporation of India for
distribution to consumer at uniform prices fixed by the government from time to
time on destination basis.
Here too, the emphasis was on fixation of price. During the first five-year plan
period Jaipur, too had entered the field but was incorporated as a private limited
company in November 1955. A notable feature of this period was that the existing
plant, or plant established a new, had larger capacity.
This plan marked for industrial growth led the government to anticipate a heavy
shortage of cement and to meet this challenges expansion programme were
undertaken.
iii) To support all the ancillary and subsidiary activities connected with
Cement and make efforts for its growth and development.
The achievements of the third five year plan were lower as compared to second
and first five year plans.
The National highway projects, new railway lines, bridges, irrigation canals and
dams reshaped the country and projected a new face of the industrialist’s
scenario. The Government of India had to decide start a partial decontrol of
cement industry and subsequently to fuller decontrol of it. The new policy
granted cement manufacturers a profit of about 12% on their investment so that
rapid increase in cement production can take place to bridge the gap of demand
and production capacity. At that time this gap was bridged by the imports of
cement.
o Production
o Engineering
o Building
o Purchase
o Accounts
o Information Systems
o Time Office
o General Administrative
o HRD
o Legal
o Security
2. INTRODUCTION OF COMPANY
2.1 COMPANY PROFILE
Shree Cement Ltd. is an energy conscious & environment friendly business
organization. Having Nine Directors on its board under the chairmanship of
Shri.B.G. Bangur, the policy decisions are taken under the guidance of Shri H.M.
Bangur, Managing Director. Shri M.K.Singhi, Executive Director of the Company,
is looking after all day-to-day affairs. The company is managed by qualified
professionals with broad vision who are committed to maintain high standards of
quality & leadership to serve the customers to their fullest satisfaction. The board
consists of eminent persons with considerable professional expertise in industry
and field such as banking, law, marketing & finance.
2.2 VISION
2.3 MISSION
o To sustain its reputation as the most efficient cement manufacturer in the
world.
2.4 PHILOSOPHY
Let noble thoughts come to us from all over the world. – Rig-Veda
TEAMWORK
Shree leverages effective team working to generate a sustainable improvement.
CULTURE OF INNOVATION
Shree believes that what is good can be made better -across the organization.
CUSTOMER FOCUS
Shree is committed to deliver a superior quality of cement at attractively affordable
prices.
SHAREHOLDER VALUE
Shree is focused on the enhancement of value through a number of strategic and
business initiatives that generate larger and a better quality of earnings.
All the Directors as well as Senior Management Executive and/or Personnel owe to
the Company as well as to the shareholders:
i) "Fiduciary duty"
ii) “Duty of skill and care”
iii) “Social responsibility”
With the above objects in mind the following code of conduct has been evolved
and it is expected that all Directors as well as Senior Management Executives
and/or personnel will adhere to it.
FIDUCIARY DUTIES
The Board from time to time shall determine the powers to be exercised by the
Directors as well as the Senior Management Executives and/or Personnel and all
such powers shall be exercised reasonably.
CONFLICT OF INTEREST
None of the Directors and/or Senior Management Executives and/or personnel will
put himself in a position where there is potential conflict of interest between
personal interest and his duty to the company. None of the Directors and/or Senior
Management Executive and/or personnel will exploit an opportunity arising while
associated with the Company for his personal gain either directly or indirectly.
SECRET PROFITS
Since all the Directors as well as Senior Management Executives and / or personnel
are acting in a fiduciary capacity and for the benefit of the company, being
advocates of the business of the Company, none of them will do anything which is
in conflict with the interest of the company.
ATTENTION TO BUSINESS
All Directors as well as Senior Management Executives and/or personnel will give
proper attention to the business of the company.
INTERNAL TRADING
The Senior Management personnel and/or employees are expected to keep the
Directors fully informed about the effect of the policies adopted by the company
from time to time and also regarding the risk connected with such policies.
Senior Management personnel and/or staff who have been entrusted with specific
duties for ensuring compliance of statutory requirements including the rules and
regulations shall forthwith comply with the same and keep the Board of directors
fully informed about such compliance or non-compliance.
Senior Management personnel will from time to time provide or cause to be
provided a true and faithful account of the company’s working and effectiveness of
the procedures adopted by the company from time to time.
All Directors as well as Senior Management Executives and/or personnel are aware
that while working with the company they have a social responsibility as well and
therefore from time to time will devote such time for the upliftment of the
downtrodden, poor and needy persons in the locality.
Shree Cement Unit I & II is located at Beawar, 185 Kms. from Jaipur off the Delhi-
Ahmedabad highway. Amongst the plants in the state it is nearest from its
marketing centers.
Bangur Cement Unit (III, IV, V & VI) is located at RAS, 28 Km from Beawar in
Pali Dist.
Shree Cement Grinding Unit (KKGU) is located at Khush Khera Dist. Alwar
Nearest to Delhi.
Registered Office & Works:
Rajasthan India
Corporate Office:
2.9 MARKETING
Marketing Presence:
Over the last three years, Shree considerably strengthened its marketing presence.
Since the company is based in Rajasthan, the state is the company’s principal
market.
Rajasthan is India’s largest cement producing state and Shree’s is the largest single
location plant in northern India. The company’s northern-most positioning within
Rajasthan makes it the closest among all Rajasthan manufacturers to Delhi,
Haryana and some parts of Punjab, a significant cost edge. The company enjoys a
market share of about 11 per cent in north India.
Markets:
Each cement manufacturer has a primary and secondary market. The former is one,
which is the closest to the production centre where it fetches the best realizations
while the latter is usually at a distance where realizations are lower.
Markets classification
Markets States
Primary Rajasthan
Rajasthan
Highlights, 2002-3
Performance
The Company sold 8.07 lac tonnes in 2002-03 (4.39 lac tonnes in 2001-02 -nine
months) in Rajasthan (29.60 per cent of the company’s sales). It sold 44,978 tonnes
and 22,264 tonnes per month in the trade and non-trade segments respectively.
Trade sales in 2002-03 were higher than the monthly average of 33,069 tonnes in
2001-02.
Network
Shree’s dealer network in Rajasthan increased to 371 in 2002-03 and translated into
enhanced sales and Rajasthan protected realizations. The company appointed more
field officers who serviced customers at regular intervals. Rajasthan had nine
business centers, which provided timely services for better customer satisfaction.
The company conducted meetings with masons to garner a better response.
Competition
Though competition was severe from Vikram, Ambuja, JK, BCW and Binani,
Shree was able to enhance its market share within the state from 11.01 per cent in
2001-02 to 13.12 per cent in 2002-03. Even though low priced alternatives were
available, Shree’s 53 grade sold more than the other grades. Dealer performance
Shree serviced the dealer with regular service, prompt solutions and a better return
on the invested capital. Sundry debtor declined to four days in the trade segment
and 32 days in the institutional segment. Old out standings were recovered.
Outlook
The Company expects to service the dealer network, enhance volumes, focus on
unmapped areas and reduce costs. It expects to focus on Red Oxide brand through
stronger awareness building.
2.10 PEOPLE
• Jo Soche Woh Paave
• Creating Leaders at Every Level
• Recognition and Reward Scheme
• Nomination to Vishwakarma Rashtriya Puraskar
• Multiskill Development Training Programme
• Ascent Programme
• The Company’s People Achievements
2.11 INNOVATION
Innovative & Cost Conscious Management
• Development of DD Cones
Capacity enhancement & utilization of CM-2 Roller press for capacity increase and
energy saving in CM-1
---Energy Saving - 2.02 kWh / T cement
Shri R.S.Agarwal
Milestones in 2007 - 08
2007-08 Best Employer Award for Rajasthan for the year 2007
2007-08 NCCBM award for 2nd Best Quality excellence during year 2006-07.
2007-08 India Manufacturing Excellence award by Frost and Sullivan for the
year 2007.
2007-08 Kush khera Grinding Unit (KKGU)-I Commenced its Production from
July 2007.
2007-08 Kush khera Grinding Unit (KKGU)-II Commenced its Production from
December 2007.
2007-08
Unit - V at RAS. August 2007.
3. PROJECT TITLE
• To find out the market position and brand image of Shree Cement at
Jhunjhunu.
It was done with the help of questioner, survey and current information of the
company and taking into consideration the current market scenario of the cement
industry at Jhunjhunu.
The researcher not only partially fulfilled his requirement of MBA degree program
but also learned a lot in the field of marketing research. The researcher has got
an opportunity of implementing his theoretical knowledge of management
curriculum in practical life.
6. RESEARCH METHODOLOGY
The researcher divided the Jhunjhunu city in different areas and then conducted the
research, covering all the segments available in the designated area.
The research was designed to know about the current cement market scenario at
Jhunjhunu and dealer’s & retailer’s perception about the cement they sell and also
know about the perception of consumer’s about the cement they use for
construction.
• Primary Data
• Secondary Data
PRIMARY DATA
The primary data has been collected by survey method using the questionnaire.
The questionnaire is consisting of 7 questions for dealers & retailers and 7
questions for consumer, well thought as well as directly related to the topic. The
question of questionnaire is closed ended. This is the most economical, efficient &
effective way of collecting primary data. It yields a wide range of information on
various characters like attitude, opinion, motive & behaviors.
SECONDARY DATA
1. Fact sheets of Shree Cement Limited
2. Internet
LIMITATIONS
1. Limited experience of the researcher in the field of research may cause some
errors.
2. Lack of proper response from some of the retailers.
3. Time and money limit were also major constraints for market survey.
7. ANALYSIS OF THE STUDY
7.1 DATA ANALYSIS THROUGH GRAPHS
7.1.1 FOR DEALERS/ RETAILERS
1 . W h a t d o y o u th in k a b o u t th e b ra n d im a g e o f fo llo w in g
b ra n d s ?
8
7 7
7
6
5 5
5
G ood
4 A ve ra g e
B e lo w A ve ra g e
3
1 1 1 1 1 1
1
0 0 0 0 0
0
Inferences:
A m All
b u jathe dealers
B irla C hofe ta
Ambuja
kS h re ecement
U lt ra thinks
U lt ra t ethat
c h brand
O t image
h e r of Ambuja
cement is good. 87.5% dealers of Ultratech cement appreciate brand image as good
while 83% dealers of Birla Chetak & Shree Ultra each also appreciate brand image
as good.
2 .W h a t d o y o u t h in k a b o u t c o m p a n y 's s e r v ic e ?
9
8
8
7
7
6
6
5
5 G ood
A ve ra g e
4 B e lo w A ve ra g e
3
2
2
1 1
1
0 0 0 0 0 0 0 0
0
Inferences:
A m100%
b u ja dealers
B ir la of
C hAmbuja,
e t aSk h reShree
e U ltUltra
r aU lt&
ra Ultratech
t e c h Ocement
t h e r appreciate
company’s services as good. While, 83% dealers of Birla Chetak appreciate it as
good.
3 . W h ic h a d v e rtis e m e n t s tra te g y d o y o u s u g g e s t to th e
c o m p a n y to b e a d o p te d ?
Inferences: 36% dealers suggest to the company for adopting wall painting
advertisement strategy. Most people think that every passer by either he is in a car
or on a motor bike, on cycle or on foot his eyes are sure to catch a glimpse of
advertisement through painting on wall on the road sides of any building that is
what which make it popular.
27%, 20% & 17% dealers suggest to the companies for adopting hoardings,
adverting in news paper & advertisement on TV respectively.
4. H o w o fte n marke tin g office r v isit you r sh op ?
6
4 o r Mo re 4 o r Mo re 4 o r Mo re
5 5 5
5
0 -3 4 o r Mo re
4 4
4
0 -3
3 0 -3
3
4 o r Mo re
0 -3
2
2
0 -3 0 -3
1 1
1
4 o r Mo re
0
0
Inferences:
Am Most
b u ja of the
B irladealers
C h e ta (63%)
k S h resaid that the
e U ltra marketing
U ltra te ch officer
Oth e rof their
company visit there shop 4 or more times in a month. On the other hand rest of the
dealers (37%) said that the marketing officer of their company visit there shop less
than 4 times in a month.
5 . W h a t d o y o u th in k a b o u t c o m p a n y ’s c u r r e n t m a r k e t p
9
8
8
7
6 6
6
5
5 G ood
A ve ra g e
4 B e lo w A ve ra g e
2
1 1 1 1 1
1
0 0 0 0 0 0
0
Inferences:
A m All of the
b u ja dealers
B irla C h eoft aShree
kS h re eUltra & UUltratech
U lt ra lt ra t e c hcement
O t happreciate
er the
current market policies of their company as good. While, 87% dealers of Ambuja &
83% dealers of Birla Chetak cement appreciate the current market policies of their
company as good.
6. Are yo u satisfie d w ith sale s p ro m o tio n e ffo rts o f co m p an y?
9 Ye s
8
8 Ye s
7
7 Ye s Ye s
6 6
6
5
Ye s
No
4
3 Ye s
2
2 No
1
1 No No No No
0 0 0 0
0
Inferences:
AmAll of the Bdealers
b u ja irla C hof
e taAmbuja,
k S h re eBirla
U ltraChetak, Shree
U ltra te ch Ultra &
O thUltratech
er
cement are satisfied with sales promotion efforts of their companies. But they want
more sales promotion from company.
7 . W h a t d o y o u th in k a b o u t th e m a rg in y o u re c e iv e d ?
6 6
6
5 5
5
4 G ood
A ve ra g e
3 B e lo w A ve ra g e
2 2
2
1 1 1 1
1
0 0 0 0 0
0
Inferences:
A m bMost
u ja of theC dealers
B irla h e ta k S h(74%) are satisfied
re e U ltra U ltra te c h with Othe
th e margin
r that they
receive. While, 23% dealers said that they are receiving average margin. Rest 3%
dealers said that they are receiving below average margin & they want to become
the dealer of other companies.
( e ) O th e r
5 ( a ) A m b u ja
7% 18
( a ) A m b u ja
( d ) U ltr a te c h 26%
( b ) B ir la C h e ta k
20
28% ( c ) S h r e e U ltr a
( b ) B ir la C h e ta k ( d ) U ltr a te c h
( c ) S h r e e U ltr a 14 ( e ) O th e r
13 20%
19%
Inferences: 28% respondents prefer Ultratech cement. While, 26% prefer Ambuja
cement. 20%, 19% & 7% respondents prefer Birla Chetak, Shree Ultra & Other
cement respectively.
2 . W h y d o y o u p re fe r th is b ra n d ?
(d ) A va ila b ility (e ) O th e r (a ) B ra n d Im a g e
13 0 12
19% 0% 17% (a ) B ra n d Im a g e
(b ) P ric e
(c ) Q u a lity
(b ) P ric e
(d ) A va ila b ility
18
(c ) Q u a lity 26% (e ) O th e r
27
38%
Inferences: 38% People concern quality while purchase cement. While, 26%
people concern price. 19% & 17% people concern availability & brand image
respectively.
3. W h ich g rad e o f ce me nt yo u p re fe r th e most?
(c ) R E D -
O XID E
13
19%
(b) 43 Grade
5 (a) 53 Grade
7% (b) 43 Grade
(c ) R E D -O XID E
(a) 53 G rade
52
74%
(b) No
27
39% (a) Yes
(a) Yes (b) No
43
61%
Inferences: 61% people are satisfied with the result of cement they use. But 39%
people are dissatisfied with the results.
(b) High
(c ) Other
Price
0 (a) Low Quality
4
0% (b) High Price
15%
(c ) Other
(a) Low
Quality
23
85%
Inferences: Out of 27 respondents 23 respondents were dissatisfied with the result
due to lower quality and rest 4 respondents were dissatisfied because of higher
price of the cement they used.
6. What type of advertisement attract you the most?
(e) Other
0%
(a) Ads. on T.V.
13%
(d) Hoardings (a) Ads. on T.V.
31% b) Ads. in News
b) Ads. in News Paper
Paper
19% (c) Wall Painting
(d) Hoardings
(c) Wall (e) Other
Painting
37%
Inferences: 37% respondents thinks that wall painting attract them most. While,
hoardings attract 31% respondents. Advertisements in News paper &
Advertisement on T.V. attracts19% & 13% respondents respectively.
(b) No
11
16%
(a) Yes
(b) No
(a) Yes
59
84%
• Good quality.
W) WEAKNESS
• Less advertising
O) OPPORTUNITIES
• Exposure of quality, which is already good but not much displayed in the
market.
T) THREATS
• Price fluctuation.
8. FINDINGS
According to the survey conducted, the researcher finds the following points:
• Shree Ultra has good brand image in the market and most of the dealers and
retailers are satisfied with it.
• There is not much dissatisfaction regarding market rates but the dealers and
retailers demands for more margins.
• Dealer’s margins must be increased so that they are motivated to become our
constant dealer.
• Marketing policies and strategies needs a major change to push the sales
because due to loose marketing policies, many potential dealers and retailers
are shifting towards the competitors in last one year.
• The promotion material circulated by the company should also have mention
of such dealers and retailers.
Brand : -…………………………………………………....
Address : -…………………………………………………....
Ambuja
Birla Chetak
Shree Ultra
Ultratech
Other
Ambuja
Birla Chetak
Shree Ultra
Ultratech
Other
Ambuja
Birla Chetak
Shree Ultra
Ultratech
Other
Ambuja
Birla Chetak
Shree Ultra
Ultratech
Other
Ambuja
Birla Chetak
Shree Ultra
Ultratech
Other
Ambuja
Birla Chetak
Shree Ultra
Ultratech
Other
Date: -………………… Signature: -………………………….
Name : -……………………………………………………
Address : -……………………………………………………
……………………………………………............
Occupation : -……………………………………………………
TECHNOLOGY,JODHPUR
11. BIBLIOGRAPHY
1) www.cmaindia.com
2) www.shreecementltd.com
3) www.google.com