METs Institute of Management, Nasik

A PROJECT REPORT ON COMPARATIVE ANALYSIS BETWEEN ORIENT CEMENT AND OTHER COMPANIES IN NASIK DISTRICT

SUBMITTED TO ORIENT CEMENT (Props: Orient Paper & Industries Ltd.) Office: 138/139 1st floor Kharbanda Park, Dwarka, Nasik-422001

BY Amarnath S. Sakhare

IN PARTIAL FULFILLMENT OF Master In Business Administration

2011-12

METs Institute of Management NASIK

Cement Industry in India

India, being the second largest cement producer in the world after China with a total capacity of 151.2 Million Tonnes (MT), has got a huge Cement Company. With the government of India giving boost to various infrastructure projects, housing facilities and road networks, the cement industry in India is currently growing at an enviable pace. More growth in the Indian cement industry is expected in the coming years. It is also predicted that the cement production in India would rise to 236.16 MT in FY11. It's also expected to rise to 262.61 MT in FY12. The cement industry in India is dominated by around 20 companies, which account for almost 70% of the total cement production in India. The history of the cement industry in India dates back to the 1889 when a Kolkatabased company started manufacturing cement from Argillaceous. But the industry started getting the organized shape in the early 1900s. In 1914, India Cement Company Ltd was established in Porbandar with a capacity of 10,000 tons and production of 1000 installed. The World War I gave the first initial thrust to the cement industry in India and the industry started growing at a fast rate in terms of production, manufacturing units, and installed capacity. This stage was referred to as the Nascent Stage of Indian Cement Company. In 1927, Concrete Association of India was set up to create public awareness on the utility of cement as well as to propagate cement consumption. The cement industry in India saw the price and distribution control system in the year 1956, established to ensure fair price model for consumers as well as manufacturers. Later in 1977, government authorized new manufacturing units (as well as existing units going for capacity enhancement) to put a higher price tag for their products. A couple of years later, government introduced a three-tier pricing system with different pricing on cement produced in high, medium and low cost plants. Cement Company, in any country, plays a major role in the growth of the nation. Cement industry in India was under full control and supervision of the government. However, it got relief at a large extent after the economic reform. But government interference, especially in the pricing, is still evident in India. In spite of being the second largest cement producer in the world, India falls in the list of lowest per capita consumption of cement with 125 kg. The reason behind this is the poor rural people who mostly live in mud huts and cannot afford to have the commodity. Despite the fact, the demand and supply of cement in India has grown up. In a fast developing economy like India, there is always large possibility of expansion of cement industry.

Technology Up-gradation
Cement industry in India is currently going through a technological change as a lot of up gradation and assimilation is taking place. Currently, almost 93% of the total capacity is based entirely on the modern dry process, which is considered as more environment-friendly. Only the rest 7% uses old wet and semi-dry process technology. There is also a huge scope of waste heat recovery in the cement plants, which lead to reduction in the emission level and hence improves the environment.

Merger and Acquisition in Cement Industry

Holcim now holds 56% stake of Ambuja Cement. Previously it held 22% of stake. The company utilized various open market transactions to increase its stakes. It invested US$ 1.8 billion for that. UltraTech Cement is had absorbed its sister concern Samruddhi Cement to become biggest cement company in India. World's leading foreign funds like HSBC, ABN Amro, Fidelity, Emerging Market Fund and Asset Management Fund have together bought 7.5% of India Cements (ICL) at a cost of US$ 124.91 million. Cimpor, a Cement company of Portugal, has bought 53.63% stake that Grasim Industries had in Shree Digvijay Cement.

Recent Investment in Cement Industry

Anil Ambani-led Reliance Infrastructure is going to build up cement plants with a total capacity of yearly 20 MT in the next 5 years. For this, the company will invest US$ 2.1 billion. In a recent announcement, the second largest cement company in South India, Dalmia Cement declared that it's going to invest more than US$ 652.6 million in the next 2-3 years to add 10 MT capacity. Jaiprakash Associates Ltd has signed a MoU with Assam Mineral Development Corporation Limited to set up a 2 MT cement plant. The estimated project cost is US$ 221.36 million. India Cements is going to set up 2 thermal power plants in Andhra Pradesh and Tamil Nadu at a cost of US$ 104 billion.

Source :- http://business.mapsofindia.com/cement/

Cement became dearer across the country by Rs 8-9 per 50 kg bag with the rise in excise duty. The increase in excise duty was mentioned in Union Budget 2011.

Varieties of Cement in India

There are some varieties in cement that always find good demand in the market. To know their characteristics and in which area they are most required, it will be better to take a look at some of the details given below.

Portland Blast Furnace slag cement (PBFSC): The rate of hydration heat is found lower in this cement type in comparison to PPC. It is most useful in massive construction projects, for example - dams. Sulphate Resisting Portland Cement: This cement is beneficial in the areas where concrete has an exposure to seacoast or sea water or soil or ground water. Under any such instances, the concrete is vulnerable to sulphates attack in large amounts and can cause damage to the structure. Hence, by using this cement one can reduce the impact of damage to the structure. This cement has high demand in India. Rapid Hardening Portland Cement: The texture of this cement type is quite similar to that of OPC. But, it is bit more fine than OPC and possesses immense compressible strength, which makes casting work easy. Ordinary Portland Cement (OPC): Also referred to as grey cement or OPC, it is of much use in ordinary concrete construction. In the production of this type of cement in India, Iron (Fe2O3), Magnesium (MgO), Silica (SiO2), Alumina (AL2O3), and Sulphur trioxide (SO3) components are used. Portland Pozolona Cement (PPC): As it prevents cracks, it is useful in the casting work of huge volumes of concrete. The rate of hydration heat is lower in this cement type. Fly ash, coal waste or burnt clay is used in the production of this category of cement. It can be availed at low cost in comparison to OPC. Oil Well Cement: Made of iron, coke, limestone and iron scrap, Oil Well Cement is used in constructing or fixing oil wells. This is applied on both the off-shore and on-shore of the wells. Clinker Cement: Produced at the temperature of about 1400 to1450 degree Celsius, clinker cement is needed in the construction work of complexes, houses and bridges. The ingredients for this cement comprise iron, quartz, clay, limestone and bauxite.
White cement: It is a kind of Ordinary Portland Cement. The ingredients of this cement are inclusive of clinker, fuel oil and iron oxide. The content of iron oxide is maintained below 0.4% to secure whiteness. White cement is largely used to increase the aesthetic value of a construction. It is preferred for tiles and flooring works. This cement costs more than grey cement.

COMPANY PROFILE

Orient Cement is a C K Birla Group Company. The Companys manufacturing facility is located at Devapur in Andhra Pradesh with a capacity of 3 million MT P.A of quality Portland cement and another plant at Nashirabad, Jalgaon in Maharashtra with a capacity of 2 million MT P.A. Orient Cement is ISO-9002, ISO-14001(DNV Norway) and TPM (JIPM Japan) Certified. It is because of its continuous up-gradation and plant modernization process with special emphasis on Energy Conservation, Pollution control, Productivity and Quality of Products. It is note worthy that devapur plant is the first cement plant in AP to be certified for ISO-14001. With the commitment of officers, workmen, network of stockiest and retail outlets, the policy is supported by the latest manufacturing facilities, advanced online quality control, and high consistent quality limestone. All this backed by good distribution network system and well thought out marketing strategy, is providing a new dimension and range of product & services to the construction industry across the country, particularly in the primary market of Maharashtra. Orient cement is currently operating in the entire southern and western states of the country covered with a network of about 75 sales depots and about 2300 stockist. Orient cement is the market leaders in their primary market of Maharashtra viz. Marathwada & Vidarbha regions. All the depots are fully equipped with latest communication facilities and competent sales officers to provide efficient services. The market is fed with both rail and road to reach every nook and corner and are fulfilling the various constructional requirements of government and non-government institutions like PWD, state electricity boards, zilla parishads, municipal corporations, Maharashtra jeevan

pradikarn, irrigation dept., Gammon India ltd, at their Amravati fly-over site, rawassa construction at their site SAPAN RIVER PROJECT, CHANDI RIVER PROJECT at Amravati and India Bulls in Nasik many more. Orient cement is the most preferred brand in the cement industries (i.e. Cement pipe industries, tile industries, cement bricks, paving blocks etc.)

A commitment to Quality Orient Cement is a member of the multi-product, multi-unit Orient Paper & Industries Ltd., - a C K Birla Group Company.

VISION:Be amongst leading manufacturers of quality cement & related value added products at low delivered cost, using world class technology and creating preferred brand image in selected regions, with total involvement of employees, leveraging their collective wisdom and competence, while retaining environment sustainability.

PRODUCT PROFILE
The quality of any good cement is judged by its performance in combination with water and aggregate as binder material. This is measured in terms of strength, heat development, workability, volume stability & durability. The continuous research and improvement has made the product to create benchmarks in these areas. The high quality in our product is built in through high capabilities in every improved sub-process to ensure high consistency in the product. These standards for our products far surpass the specification laid down by the Bureau of Indian Standards (BIS) for product. Orient cement has 3 variations in cement. They are: 1) 53 Grade Cement 2) 43 Grade Cement 3) Birla A1 Premium Cement

This 3 variants are briefly discussed below : 53 GRADE CEMENT Orient Cement launched Orient Gold 53-Grade cement in the market place in 1992. One of the pioneers to introduce the 53-Grade Cement in India, Orient cement opened up a whole new dimension in building construction. The runaway success of Orient Gold is a fitting testimony to its endeavour to provide the consumers only the very best. 43 GRADE CEMENT Orient 43 Grade Cement is manufactured under controlled process conditions deploying sophisticated plant machineries. This product, like our other cement products, has become quite popular in the market. This is a general purpose cement specially suited for pre-cast, pre-stressed RCC constructions. Suitable for sheet and pipes of asbestos/non-asbestos based products. Low heat of hydration leading to higher resistance to development of cracks. General civil engineering construction works like buildings, bridges, roads, etc. Compressive strengths are much higher than the BIS Standards.

BIRLA A1 PREMIUM CEMENT Birla A1 Premium Cement is an inter-grinding of portland cement clinker, gypsum and very fine-grained highly reactive flyash. One advantage of this cement is, better particle size distribution for higher strength. Important Features Increased durability. Crack Resistance. Smoother Finish.

The applications of Birla A1 are very wide: Industrial, residential and commercial constructions. Mass concrete construction dams, canals, roads, drains, etc. Building construction & RCC work. Plastering & masonry Grouts and mortars Effluent and sewage treatment plant. Marine work & coastal construction.

Competitors of Orient in Nasik District

ULTRATECH
UltraTech Cement Limited has an annual capacity of 52 million tonnes. It manufactures and markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzalana Cement. It also manufactures ready mix concrete (RMC). The company has 11 integrated plants, one white cement plant, one clinkerisation plant in UAE, 15 grinding units 11 in India, 2 in UAE, one in Bahrain and Bangladesh each and five terminals four in India and one in Sri Lanka. UltraTech Cement is the countrys largest exporter of cement clinker. The export markets span countries around the Indian Ocean, Africa, Europe and the Middle East. UltraTech's subsidiaries are Dakshin Cements Limited, Harish Cements Limited, UltraTech Ceylinco (P) Limited and UltraTech Cement Middle East Investments Limited

AMBUJA
Ambuja Cements Ltd. (ACL) is one of the leading cement manufacturing companies in India. The Company, initially called Gujarat Ambuja Cements Ltd., was founded by Narotam Sekhsaria in 1983 with a partner, Suresh Neotia. Sekhsarias business acumen and leadership skills put the company on a fast track to growth. The Company commenced cement production in 1986. The global cement major Holcim acquired management control of ACL in 2006. Holcim today holds little over 46% equity in ACL. The Company is currently known as Ambuja Cements Ltd. ACL has grown dynamically over the past decade. Its current cement capacity is about 25 million tonnes. The Company has five integrated cement manufacturing plants and eight cement grinding units across the country. ACL enjoys a reputation of being one of the most efficient cement manufacturers in the world. Its environment protection measures are on par with the finest in the country. It is one of the most profitable and innovative cement companies in India. ACL is the first Indian cement manufacturers to build a captive port with three terminals along the countrys western coastline to facilitate timely, cost effective and environmentally cleaner shipments of bulk cement to its customers. The Company has its own fleet of ships. ACL has also

pioneered the development of the multiple bio-mass co-fired technology for generating greener power in its captive plants. ACL has always met tough challenges and seized the opportunities that have come its way. It has nurtured the same spirit of enterprise and search for cutting-edge technology with which it started. It thus continues to be the driving force and in many ways a benchmark for the cement industry in India.

ACC
ACC (ACC Limited) 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, 21 sales offices, and several zonal offices. It has a workforce of about 9,000 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 countrys road transport network services for inward and outward movement of materials and products. 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 plants, mines and townships visibly demonstrate successful endeavours in quarry rehabilitation, water management techniques and greening activities. The company actively promotes the use of alternative fuels and raw materials and offers total solutions for waste management including testing, suggestions for reuse, recycling and co-processing. ACC has taken purposeful steps in knowledge building. We run two institutes that offer professional technical courses for engineering graduates and diploma holders which are relevant to manufacturing sectors such as cement. The main beneficiaries are youth from remote and backward areas of the country. 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. ACCs 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.

MANIKGARH
Manikgarh Cement is a division of Century Textiles and Industries Ltd, a flagship company of BK Birla Group. The company is well diversified having interest in cement, textiles, rayon, chemicals, pulp and paper. Manikgarh Cement is situated at Gadchandur, Dist. Chandrapur in the State of Maharashtra with an installed capacity of 1.50 Million TPA. Apart from this, company has two more cement plants namely Century Cement at Baikunth, Dist. Raipur in the State of Chhattisgarh with an installed capacity of 1.80 Million TPA and Maihar Cement at Sarlanagar, Dist. Satna, in the State of Madhya Pradesh with an installed capacity of 3.50 Million TPA. The combined Capacity of all cement plants taken altogether is 6.80 Million TPA. More emphasis is given for production of blended cement which constitutes about 95% of the total cement produced by the company. Up gradation work for enhancing capacity to 8.5 MTPA is under implementation which is expected to be completed by Dec'2010. Further, company is expanding its cement manufacturing capacity by 4.0 MTPA by setting up a new 1.5 MTPA Cement Grinding unit at Sagardighi in Murshidabad District (West Bengal) and by installing a new clinker line of capacity of 2.50 MTPA and an equivalent cement grinding facility adjacent to the existing plant of Manikgarh Cement at Gadchandur, Dist. Chandrapur (Maharashtra).With the up gradation & proposed expansion, the capacity will increase to 12.5 MTPA by end of calendar year 2012. All cement plants are equipped with captive power plants, which not only ensure an uninterrupted power supply, but also help company substantially on power cost, as the own generated power is quite economical as compared to grid power. The company sells its cement under various premium brands - Birla Gold, Birla Faulad, Century Classic, Century Gold, Manikgarh Gold & Manikgarh Cement.

ICL
Shri Sankaralinga Iyer was a pioneer of heavy industry in the South. Primarily a banker, he ventured into the field of industry with a rare devotion and confidence with the prime objective of developing major industries in the state. With his banking experience and interest in exploring the mineral potential of South India, he went ahead boldly with his scheme of building a cement plant in the vicinity of Thalaiyuthu, where extensive deposits of limestone were assuredly available. Shri Sankaralinga Iyer with his energy and drive gave the cement project a realistic form and content. The India Cements Ltd was established in 1946 and the first plant was setup at Sankarnagar in Tamil nadu in 1949. Since then it has grown in stature to seven plants spread over Tamilnadu and Andhra Pradesh. The capacities as on March 2010 have reached 14.05 mtpa. Company Highlights

The Company is the largest producer of cement in South India. The Company's plants are well spread with three in Tamil nadu and four in Andhra Pradesh which cater to all major markets in South India and Maharashtra. The Company is the market leader with a market share of 28% in the South. It aims to achieve a 35% market share in the near future. The Company has access to huge limestone resources and plans to expand capacity by debottlenecking and optimisation of existing plants as well as by acquisitions. The Company has a strong distribution network with over 10,000 stockists of whom 25% are dedicated. The Company has well established brands- Sankar Super Power, Coromandel Super Power and Raasi Super Power. Regional offices in all southern states and Maharashtra offices/representative in every district.

PRICES OF CEMENT IN THE MARKET

Companies
Orient UTCL AMBUJA ACC JAYPEE ICL MANIKGARH

Price/bag
285 300 302 295 285 275 278

DISCOUNT STRUCTURE OF COMPANIES

PARTICULARS ORIENT QUANTITY DISCOUNT CASH DISCOUNT RETAILERS DISCOUNT YEARLY SCHEME OTHERS TOTAL DISCOUNT 2 4 0 0 10*
(GOLD SCHEME)

UTCL 3 4 2 2 3 14

AMBUJA 3 4 3 2 2
(AASMA)

MANIKGARH 2 4 0 3 6
(NAKA & GOLD)

ACC 2 4 3 3 2
(LAKSHYA)

ICL 3 4 0 4 3 14

JAYPEE 3 4 2 2 3 14

16

14

15

14

(*) this scheme varies from season to season. Octroi at Nasik is Rs. 11/bag.

LOGISTICS

Transportation is medium by which material is moved from manufacturing plant to the market. There are 3 types of Transportation used in cement industry. 1. Road. 2. Sea. 3. Railway. 1. Road : When there is proximity to the market companies use road transportation. Its helps in fast delivery of short orders and it is convenient. 2. Sea : Sea transportation is used when the companies are located near to the coastal area. Just to name some examples Ambuja and ICL make use of this type of transportation. 3. Railway : Railway is used by the companies when the market is far from the plant. Because it is cheap, convenient and safe to use railway as transportation medium.

Rail Yard (Dhakka)

Railway is primary, convenient and cheaper way to bring cement from their production unit to market. Every cement company prefers railway as a transporting medium to reach the market. Transporting media affects on cost of cement bag. As railway provides transporting at cheaper rate, so cement companies can maintain their prices. Road transport increases cost of cement bag and delivery time also. Advantages of Rail Yard:1) By rail company can move material up to 64 tons/wagon in single transaction, which is not possible by road. 2) Requires less time to reach at destination. 3) Reduces cost of transporting. 4) Safest way of bringing cement to the market.

Disadvantage:1) Mishandling of cement bags by labour at railyard. 2) Availability of labour is also big problem. Recently this problem is faced by Nasik cement companies. I feel that the major drawback of rail yard is lead time, as delivery of material takes too much time.

Terminologies used in operations of rail yard regarding cement products:1) Demurrages:When a rail comes with cement bags on rail yard, the free hours given by the railway, i.e. 5 hours to unloads the material from wagon after that the charges will be Rs 100 per hour per wagon. Above charges bared by company.

2) Wharfages:If the material is not cleared from the rail yard within free time i.e. 12 hours, after that the charges will be Rs 100 per wagon per hour. Above charges bared by company.

3) Penal:Rail yard is not specifically for cement material only. When other material arrives at rail yard and the movement of cement material is slow from rail yard then the railway authority applies penal charges. Which are 2-4 times than normal Wharfages. Above charges bared by company.

Types of wagon
1) BCN: - BCN type of rail has 42 wagons. BCN type wagon has two types I) BCN: - This wagon has capacity 61-63 metric tons. The chargeable material is of 61 tons by rail yard. II) BCN-A: - This wagon has capacity 64-66 metric tons. The chargeable material is of 66 metric tons.

2) HL: - This wagon has more carrying capacity compare to other wagons. The capacity is of 70 metric tons. This type of rail has 58 wagons.

DATA INTERPRETATION

YEARS

NUMBER OF DEALERS AND PECENTAGE RETAILERS 5 23 31 43 102 5% 23% 30% 42% 100%

0-2 3-5 6-8 ABOVE 8 TOTAL

EXPERIENCE OF DEALERS AND RETAILERS IN CEMENT INDUSTRY

PERCENTAGE OF DEALERS
5% 23% 42%

0 to 2 3 to 5 6 to 8 above 4

30%

DATA INTERPRETATION:The above chart shows that, 42% of the dealers and retailers have more than 8 years experience in cement industry. Followed by 30% between 6-8 years, 23% between 3-5 years and 5% between 0-2 years.

PERSPECTIVE OF DEALERS AND RETAILERS ABOUT CEMENT BUSINESS NUMBER OF DEALERS PECENTAGE AND RETAILERS 74 73% 28 27%

NORMAL PROFITABLE

PERSPECTIVE OF DEALERS ABOUT CEMENT BUSINESS

27% Normal PROFITABLE 73%

DATA INTERPRETATION: The above chart shows that, 27% dealers and retailers think that cement business is profitable than other business and 73% think that cement business is just like any other business.

BRAND SEEN MORE ON THE COUNTER COMPANIES UTCL AMBUJA ORIENT JAYPEE ACC ICL MANIKGARH OTHERS NUMBER OF DEALERS 69 67 79 3 71 40 43 12

BRAND SEEN MORE ON THE COUNTER

43 40 67 71 79 12 69 UTCL AMBUJA OREINT JP ACC ICL MANIKGH 3 OTHERS

DATA INTERPRETATION: The above chart shows that, ORIENT cement was seen on 79 counters we visited. Followed by ACC on 71 counters, UTCL on 69 counters and AMBUJA on 67 counters.

DEMAND FOR TYPES OF CEMENT TYPES OF CEMENT OPC PPC BOTH NUMBER OF DEALERS PERCENTAGE AND RETAILERS 6 6 12 12 82 80

PERCENTAGE WISE DEMAND FOR TYPES OF CEMENT

6% 12% OPC PPC BOTH 80%

DATA INTERPRETATION: The above chart shows that, 80% of dealers and retailers said that there is equal demand for both type of cement. 12% said that demand for PPC is more and 6% said that demand is more for OPC.

FAST MOVING BRAND IN THE MARKET COMPANIES UTCL AMBUJA ORIENT JAYPEE ACC ICL MANIKGARH OTHERS NUMBER OF DEALERS AND RETAILERS 39 54 30 1 8 0 5 3

PECENTAGE WISE FAST MOVING BRAND IN MARKET

0 1 8 5 3 39 30 UTCL AMBUJA OREINT JP ACC ICL 54 MANIKGH OTHERS

DATA INTERPRETATION: The above chart shows that, 54 dealers and retailers said that AMBUJA is the fast moving brand in the market. Followed by UTCl and ORIENT.

DAYS TAKEN FOR THE DELIVERY AFTER PLACING ORDER NUMBER OF DAYS 1 DAY 2 DAYS 3 DAYS MORE THAN 4 DAYS NUMBER OF DEALERS PERCENTAGE AND RETAILERS 44 43% 50 49% 6 6% 2 2%

PERCENTAGE WISE DELIVERY SERVICES

6% 2% 1 day 43% 2 days 3 days 49% MORE THAN 4

DATA INTERPRETATION: The above chart shows that, 49% dealers and retailers said that it takes 2 days to get the cement after placing order. 43% said it takes 1 day, 6% said it takes 3 days and 2% said it takes more than 4 days.

PRICES OF OTHER CEMENTS COMPARED TO ORIENT CEMENT COMPANIES ORIENT UTCL ACC AMBUJA JAYPEE ICL MANIKGARH OTHERS HIGH 2 100 53 98 35 6 2 0 PRICES MODERATE 75 2 49 4 65 87 53 3

LOW 25 0 0 0 2 9 47 7

120 100 100 80 60 40 25 20 2 0 ORIENT UTCL ACC AMBUJA JP ICL MANIKGH OTHER 2 0 0 4 0 2 6 9 2 0 3 7 75 65 53 49 35 53 47 HIGH MODERATE LOW 98 87

DATA INTERPRETATION: The above chart shows that, according to dealers and retailers UTCL and AMBUJAs cement price are high. Whereas orient is having moderate price.

COMPANIES PROVIDING MORE DISCOUNT COMPANIES ORIENT UTCL ACC AMBUJA JAYPEE ICL MANIKGARH PENNA ALL SAME NUMBER OF DEALERS AND RETAILERS 19 5 39 38 1 0 1 2 13

COMPANY PROVIDING MORE DISCOUNT TO DEALERS AND RETAILERS

0 1

13 1 2

19

ORIENT UTCL 5 ACC AMBUJA JP ICL

38 39

MANIKGH PENNA ALL SAME

DATA INTERPRETATION: The above chart shows that, 39 dealers and retailers said ACC provides more discount, 38 said AMBUJA provides more discount and 19 said ORIENT provides more discount.

QUALITY WISE RANKING COMPANIES ORIENT UTCL ACC AMBUJA JAYPEE ICL MANIKGARH OTHERS RANK 1 29 91 36 90 11 8 7 3 RANK 2 40 8 58 10 63 57 37 5 RANK 3 28 3 6 1 22 31 45 1 RANK 4 5 0 2 1 4 6 13 1 RANK 5 0 0 1 0 2 0 0 0

100 80 60
40

91

90

58 36

63

RANK 1
57 45 37

RANK 2 RANK 3 RANK 4

40 20 0

29 28 5 8 0 6 10 2 1 1 1 0 11

31 22 8

3 0 0

4 2

7 0

13 0 3 5 1 1 0

RANK 5

ORIENT

UTCL

ACC

AMBUJA

JP

ICL

MANIKGH

OTHER

DATA INTERPRETATION: The above chart shows that, 91 dealers and retailers gave UTCL 1st rank in quality, 90 gave 1st rank to AMBUJA. Whereas ORIENT is concern the 29 gave 1st rank, 40 gave 2nd rank, and 28 gave 3rd rank.

SERVICE WISE RANKING COMPANIES ORIENT UTCL ACC AMBUJA JAYPEE ICL MANIKGARH OTHERS RANK 1 23 71 16 72 3 3 11 7 RANK 2 17 6 51 5 5 31 18 3 RANK 3 30 3 9 1 1 14 12 1 RANK 4 12 0 0 0 2 3 5 0 RANK 5 3 1 2 0 1 1 0 0

80 70 60 50 40
30

71

72

51

RANK 1 RANK 2
31 18 14 9 2 5 1 0 0 3 5 1 2 1 3 3 1 11 12 5 0 7 3 1 0 0

RANK 3 RANK 4

30 20 10 0

23 17 12 3 6 3 0 1 16

RANK 5

ORIENT

UTCL

ACC

AMBUJA

JP

ICL

MANIKGH

OTHER

DATA INTERPRETATION: The above chart shows that, 72 dealers and retailers gave AMBUJA 1st rank in service, 71 gave UTCL 1st rank in service. ACC was on 2nd rank and ORIENT on 3rd rank.

ADVERTISEMENT WISE RANKING COMPANIES ORIENT UTCL ACC AMBUJA JAYPEE ICL MANIKGARH OTHERS RANK 1 8 89 24 95 9 14 2 2 RANK 2 8 9 65 6 73 73 6 1 RANK 3 36 4 10 0 16 6 29 1 RANK 4 41 0 2 1 3 8 47 0 RANK 5 8 0 1 0 1 1 18 0

100 90 80 70 60 50 40 30 20 10 0 ORIENT 88
8

89

95

73 65

73 RANK 1
47

RANK 2 RANK 3

41 36

24
16

29

RANK 4
18

9
4 0 0

10 2 1

6
0 1 0

9
3 1

14
6 8 1

RANK 5 211 0 0 OTHERS

UTCL

ACC

AMBUJA

JP

ICL

MANIKGH

DATA INTERPRETATION: The above chart shows that, 95 dealers and retailers gave 1st rank to AMBUJA in advertisement. 89 gave 1st rank to UTCL. JAYPEE and ICL were on 2nd and ORIENT was on 4th rank in advertisement.

EFFECT OF ADVERTISEMENT IN FETCHING CUSTOMERS NUMBER DEALERS RETAILERS 63 5 32 2 OF PERCENTAGE AND 62% 5% 31% 2%

HIGH LOW AVERAGE CANT SAY

PERCENTAGE
2%

31%

HIGH 63 LOW 5 AVERAGE 32 62% CAN'T SAY 2

5%

DATA INTERPRETATION: The above chat shows that, 62% dealers and retailers said advertisement have high effect on selling whereas 31% said it has average effect .

COMPANIES GOOD TO WORK WITH COMPANIES ORIENT UTCL ACC AMBUJA JAYPEE ICL MANIKGARH OTHERS NUMBER OF DEALERS AND RETALIERS 37 33 10 42 1 1 5 2

PERCENTAGE WISE DEALERS/RETAILERS FEELS GOOD TO WORK WITH THE COMPANY

1 1 5 2 37 ORIENT UTCL ACC 42 AMBUJA JP ICL MANIKGH 10 33 OTHERS

DATA INTERPRETATION: The above chart shows that, 42 dealers and retailers feels good to work with AMBUJA. 37 feels good to work with ORIENT and 33 feels good to work with UTCL.

Findings

1) 2) 3) 4) 5) 6)

I found that your dealer has one or two other dealership of competitors. Your dealer also sell other brand cement . Retailers does not have any separate discount structure. Brand awareness is very poor within people. Sales promotional activities are also less. Availability of sales promotional material is also very less compared to market strength. 7) Orient cement does not accept order less than 200 bags. 8) Transport service is tremendously poor ,as required to Cement Industry. As orient cement bring material by two ways one is by rail & another is by road. Orient Cement appoint two separate clearing and forward agent for each way. Both are performing their task very poor. So delivery of your cement cant be at proper time. Your transporting service is not as per dealers expectations in taluka places. 9) Your clearing & forward agents not responding properly to Marketing Executives. 10) Poor transport service affects sale in taluka places as well as in Nasik city also. 11) As Nasik is primary market for Orient Cement, but due to poor transporting services there is problem in achieving sales target.

Suggestions

1) As Orient cement does not believe in Exclusiveness. So to increase sale, you should give monthly target to your dealers . 2) Retailers:Most of the common people those who are not directly belonging to construction field they purchase cement from Retailers. It is not possible to make each retailer to dealer, due to dealership terms and conditions from company point of view. Here I like to mention some reasons of many retailers who are not interested in taking dealership.:I) Availability of capital to hold dealership is not possible for many retailers. II) Many retailers feels that they can make good profit in retailing only. Retailers are only media to reach your cement up to number of peoples So you have to think about separate discount structure for retailers. 5) You have to create strong Brand image. For that you have to concentrate on following points Services:Transport service:- You should improve your transport service concerning from time and place point of view. Concentrate on improving transporting service in taluka place.

Branding :For branding you should increase advertisement in print media , on televisions. You should sign a Famous personality as brand ambassador. Provide more advertising material to your dealer, like pen, diary, tables, chairs ,wall painting, poster, banner on prime locations.

General suggestions:1) Office area for Nasik Depot is being small, so it being so congested. To avoid it, you should increase your office area for pleasant working condition. 2) Make your operations with the implementation of IT. You can implement ERP system. Which is less costly than SAP, but works efficiently like SAP. 3) Try to maintain your data base with the help of ERP. Avoid paper work for previous data or old data. It should be archive by Implementing ERP. 4) You should create a separate HR department.

Environment Friendly Suggestion:-

You can provide a small plant for plantation to dealer who appeared for Gold scheme.