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A

Project Study Report


On
Training Undertaken at

Title
Comparative Analysis of
Shree Ultra Red Oxide Cement
with other Brands
in
Jodhpur Region

Submitted in partial fulfillment for the


Award of degree of

Master of Business Administration


Submitted By: Submitted
To:
Vaibhav Achtani Pr.G.N.
Purhoit
MBA Part 3rd Director,
VIM

CERTIFCATE
PREFACE

The present project is undertaken as a part of my Internship with


the Shree Cement Ltd. The internship constitutes a very important part of
the course curriculum as it gives the students a chance to learn and
incorporate in them the ways of working in the corporate environment.

The project undertaken herein deals with one of the most


important constituents of company which is quality and quantitative
analysis.

The increasing emphasis on branding has resulted in immense


pressure and competition among the producers and as a result of which
retailer has been found to important mediator to increase the market
share and sale of the product. Due to this, Companies are eager to
measure the satisfaction level of the retailers towards their brands.

To find out the factors those are responsible to increase the


satisfaction level of the retailer. The most important task to retain the
retailer with brand name and they do not discuss the scheme/policy with
competitors.

The project aims at attaining information, to find the number of the


retailers that are not satisfied with brand and most important the reason
behind there dissatisfaction level in means of quality.
ACKNOWLEDGMENT

I wish to thank GOD the Almighty for bestowing on me his


blessings and for giving me the opportunity to undergo the project with
this prestigious organization. He has given me good sense and
understanding which has helped me in doing my work with at most
dedication and hard work.

I express my sincere thanks to my project guide, Prof. G.N.


Purohit, Director, Of Vyas Institute of Management for guiding me right
form the inception till the successful completion of the project. I sincerely
acknowledge her for extending their valuable guidance, support for
literature, critical reviews of project and the report and above all the moral
support he had provided to me with all stages of this project.

I express a deep sense of gratitude to honorable Shri Gopal


Tripathi, Training Incharge, SCL for providing me an opportunity to work
with Shree Cement Ltd.

I would also like to thank All faculty member of Vyas Institute Of


Management and the supporting staff for their help and cooperation
throughout our project.

I wish my sincere thanks to the Customers, Retailers, who provide


their valuable time from their busy schedule and took interest in my
questionnaire.

Place : Jodhpur

Date: 15 Sept. 2009

Vaibhav Achtani
MBA Part 3rd
EXECUTIVE SUMMARY
This project deals with the assessment of satisfaction level of the
retailers towards the Shree Cement Brand in terms of quality and
quantity, and factor that are responsible for the satisfaction level. We
have focused our research on Shree Cement due to the slow growth rate
instead of having huge market possibility.

With the help of Questionnaire we have analyzed each and every


factor that is responsible for the satisfaction level of the retailer toward
Shree Cement. Study also included the market demand for the cement,
market share, competition analysis to know the exact position of cement
in the market.

We have focused toward retailer scheme and its impact on the


retailer and sale promotion of the cement.

Most important factor that are responsible are profitability margin ,


problem related to quality, problem related to the monetary coupon ,
problem related to the disbursement amount all these factor really
hampering the retailers relationship with the company. We have also
discussed the challenges in front of the company and its
recommendation.

We planned to target the retailers and dealers to collect data


regarding position of shree ultra red oxide cement that :

1. What are weaknesses in the marketing strategies of company?

2. How many satisfied retailers are there in jodhpur region?

3. What factors must be adopted to enhance retail market.

4. What are the promotional activities adopted by company?


TABLE OF CONTENTS

S.no. Topic Page


No.
1. THE INDIAN CEMENT INDUSTRY

The Indian Cement Industry date back to 1914, with first unit was
set up at Porbandar with a capacity 1000 tones. Currently the Indian
Cement Industry with a total capacity of around 213 million tones
(excluding mini plants) in FY 08-09, has surpassed developed nations
like USA and Japan and has emerged as the second largest market after
China. Although consolidation has taken place in the Indian Cement
Industry with the top 5 players almost 50% of the capacity, the remaining
50% of the capacity remains pretty fragmented. India’s average
consumption is still low and the process of catching up with international
averages will drive future growth. Infrastructure spending (particularly on
roads, ports and airports), a spurt in housing construction and expansion
in corporate production facilities is likely to spur growth in this area.
South-East Asia and the Middle East are potential export markets. Low
cost technology and extensive restructuring have made some of the
Indian cement companies the most efficient across global majors.
Despite some consolidation, the industry remains somewhat fragmented
and merger and acquisition possibilities are strong. Investment norms
including guidelines for foreign direct investment (FDI) are investor-
friendly. All these factors present a strong case for investing in Indian
market.

1.1 THE CEMENT INDUSTRY STRUCTURE


Presently the total installed capacity of Indian Cement Industry is more
than 200 million tones per annum, with a production around 184 million
tones. The whole cement industry can be divided into Major cement
plants and Mini cement plants.

MAJOR CEMENT PLANTS:

 Plants: 140
 Typical installed capacity
 Per plant: Above 1.5 mntpa
 Total installed capacity : 195 mntpa
 Production 08-09: 178 mntpa
 All India reach through multiple plants
 Export to Bangladesh, Nepal, Sri Lanka, UAE and Mauritius
 Strong Marketing network, tie-ups with customers, contractors
 Wide spread distribution network
 Sales primarily through the dealer channel
MINI CEMENT PLANTS:

 Nearly 300 plants located in Gujarat, Rajasthan, MP mainly


 Typical installed capacity
 Installed capacity around 9 mntpa
 Production around : 6 mntpa
 Mini plants were meant to tap scattered limestone reserves
 Most of the plants use vertical kiln technology
 Production cost / tonne – Rs 1,000 to Rs 1,400
 Presence of these plants limited to the state

1.2 INDUSTRY CURRENT SCENARIO

SECTOR OUTLOOK
Indian Cement Industry is set to increase production capacity by 28.3 mt
in FY09E, 41.4 mt in FY10E and 18.9 mt in FY11E. This will take the
aggregate installed capacity to ~288 mt. In FY08, 21 mt of capacity was
added. The Industry planned this massive capacity expansion of 108 mt
because they had never seen such a good run till FY2006. During this
period, the capacity utilization rate of the Industry reached an all time
high level of ~99% in FY08. In the period FY05 to FY08, cement demand
grew at a CAGR of 10.5% and average retail price increased by a
whopping 41% to Rs 230 per bag. Cement manufacturers made huge
profits and the Industry average per tonne of operating profits crossed Rs
1100. Driven by theses profitability levels, average RoCE level of the
Industry crossed the 25% mark.
Figure 02: Capacity addition in Cement production

Cement Industry is set to add ~89 mn tonnes of capacity between FY09-


FY11E, which accounts for ~48% of FY08 installed capacity. We expect
~21 mt of capacity addition in Q4FY09, followed by 41 mt of additional
capacity in FY10 and 18.9 mt in FY11. Of the new capacities, ~ 41 mt
(~50%) is expected to be commissioned in the South, followed by 13.3 mt
(~16.4%) in the North and 13 mt (16.1%) in the East.
SHARE OF CAPACITY ADDITION (REGION-WISE AND TOP 5 GROUPS)

Figure 03: share of capacity addition region wise


Figure 03: share of capacity addition Company wise

1.3 ANTICIPATED GROWTH IN CEMENT DEMAND


Housing construction accounts for around 60-65% of the total cement
demand and the balance comes from infrastructure sectors including
roads, railways, ports and power, among others. The demand for cement
is directly linked to economic activity and has a high correlation with
GDP growth. Infrastructure investments and construction activities,
which are the major drivers of cement demand, are also key components
of GDP. Further, rural housing, which is a determinant of cement
demand, depends on agricultural productivity, which again is a key
component of GDP.

Historical data of last 12 yrs shows that cement demand in India has
increased at the rate of 1.27x the growth rate of GDP. It is expected
that cement consumption growth would shrink over the next two years
due to uncertain economic conditions and slowdown in real estate
construction activities. Cement demand will consequently grow by 8.7%,
7.6% and 8.9% in FY09, FY10 and FY11 respectively.

CAPACITY UTILIZATION (%)


120% 98.7%
91.5% 97.0%
100% 86.1% 87.6% 84.5% 79.5%
80%
60%
40%
20%
0%
FY05 FY06 FY07 FY08 FY09E FY10E FY11E

Table 03: Capacity Utilization (%)

1.4 TYPES OF CEMENT


Cements are of two basic types – grey cement and white cement. Grey
cement is used only for construction purposes while white cement can be
put to a variety of uses. It is used for mosaic terrazzo flooring and certain
cements paints. It is used as a primer for paints besides has a variety of
architectural uses. The cost of white cement is approximately three times
that of grey cement. White cement is more expensive because its
production cost is more and excise duty on white cement is also higher.
Shree Cement does not manufacture white cement at present.

CEMENT

GREY WHITE
PORTLAND POZZOLONA ORDINARY PORTLAND

The types of cement in India have increased over the years with the
advancement in research, development, and technology. The Indian
cement industry is witnessing a boom as a result of which the production
of different kinds of cement in India ha s also increased.
By a fair estimate, there are around 11 different types of cement that are being
produced in India. The production of all these cement varieties is according to
the specifications of the BIS.

1.5 CEMENT MANUFACTURING


RAW MATERIAL PREPARATION
Limestone of differing chemical composition is freely available in the
quarries. This limestone is carefully blended before being crushed. Red
mineral is added to the limestone at the crushing stage to provide
consistent chemical composition of the raw materials. Once these
materials have been crushed and subjected to online chemical analysis
they are blended in a homogenized stockpile. A bucket wheel reclaimer is
used to recover and further blend this raw material mix before transfer to
the raw material grinding mills.

Transport belt conveyor transfers the blended raw materials


to ball mills where it is ground. The chemical analysis is
again checked to ensure excellent quality control of the
product. The resulting ground and dried raw meal is sent to
a homogenizing and storage silo for further blending before
being burnt in the kilns.

Fig 1: Limestone Extraction

Fig 3: Kiln
FUELS
The heat required to produce temperatures of 1,800°C at
the flame is supplied by ground and dried petroleum coke
and/or fuel oil. The Petcoke is imported via the companies'
internal wharf, stored and then ground in dedicated mills.
Careful control of the mills ensures optimum fineness of
the Petcoke and excellent combustion conditions within the
kilns system. Fig 2: Inside of Kiln

BURNING

The raw meal is fed into the top of a pre-heater tower equipped with four
cyclone stages. As it falls, the meal is heated up by the rising hot gases
and reaches 800°C. At this temperature, the meal
dehydrates and partially decarbonizes. The meal then
enters a sloping rotary kiln, which is heated by a
1,800°C flame, which completes the burning process of
the meal. The meal is heated to a temperature of at
least 1,450°C. At this temperature the chemical
changes required to produce cement clinker are
achieved. The dry process kiln is shorter than the wet Fig 3: Central Control Room
process kiln and is the most fuel-efficient method of cement production
available.

COOLER UNITS

The clinker discharging from the kiln is cooled by air to a temperature of


70°C above ambient temperature and heat is recovered for the process
to improve fuel efficiency. Some of the air from the
cooler is de-dusted and supplied to the coal grinding
Plant. The remaining air is used as preheated secondary
air for the main combustion burner in the kiln. Clinker is

Fig 4: Cement Plant


analyzed to ensure consistent product quality as it leaves the cooler.
Metal conveyors transport the clinker to closed storage areas.

FILTERS

Dedicated electrostatic precipitators dedust the air and gases used in the
Clinker Production Line Process. In this way, 99.9% of the dust is
collected before venting to the atmosphere. All dust collected is returned
to the process.

CONSTITUENTS

Different types of cement are produced by mixing and weighing


proportionally the following constituents:

• Clinker
• Gypsum
• Limestone addition
• Blast Furnace Slag
Fig5: Cement manufacturing from the quarrying of limestone to the
bagging of cement.

1.6 FUTURE OF CEMENT INDUSTRY


Demand drivers
Infrastructure & construction sector the major demand drivers. Some
demand determinants

 Economic growth
 Industrial activity
 Real estate business
 Construction activity
 Investments in the core sector
Future

• Signs of a revival

 growth in the housing sector


 central road fund established for national highways
and
railway over bridges to provide the necessary
impetus
 expansion plans, greenfield projects on the anvil

• Capacity likely to be 286.9 mn. tonnes by 2009 - 2014

 By 2009 - 3.9 mn tonnes addition expected


 2010-2011 - 10 mn tonnes
 2012 - 2013 - 8 mn tonnes

• Demand - supply balance expected in the next 12 - 15 months


• Higher capacity utilisation likely in the future
• Encouraging trend in demand due to pick-up in rural housing
demand and industrial revival
• Industry likely to grow at 8-10% in the next few years
CHAPTER 2

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.

Location

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 lacated at RAS,28 Km from Beawar in
pali Dist.

Shree Cement Grinding Unit (KKGU) is located at Khush Khera Dist. Alwar
Nearest to Delhi.

Regd. Office & Works:

Shree Cement Ltd.

Bangur Nagar, Post Box No. 33 Beawar 305901

Rajasthan India

Corp.Office:
21, Strand Road, Calcutta- 700001.
Success Driver

PEOPLE AS PROGRESS DRIVERS


Shree believes that what is present in the minds of people is more
valuable than the assets on the shop floor. All the company’s initiatives
are directed to leverage the value of this growing asset.

TEAMWORK
Shree leverages effective team working to generate a sustainable
improvement.

LEADERS AT EVERY LEVEL


Shree believes in creating leaders -not just at the organizational apex but
at every level, resulting in a strong sense of emotional ownership.

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.

COMMUNITY AND ENVIRONMENT


Shree’s community concern extends from direct assistance to safe and
dependable operations for its members and the environment.

Markets classification

Markets States

Primary Rajasthan

Delhi, Punjab, JK, Haryana, Western U.P. and


Secondary
Uttaranchal

Tertiary Gujarat, M.P. and Central U.P.

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.

In an industry where consumer loyalties change every rupee, Shree’s


biggest achievement was that it built an emotional bond with its
stakeholders.

This transpired as a result of a number of initiatives:

• The company positioned its brands around longer life (durability),


emphasizing product longevity.
• The company innovated the launch of corrosion resistant grade
like Red Oxide Cement, winning innovations in a staid industry.
• Shree put its products deeper within most territories. Besides, it
invested in logistics to reach retail shelves faster. As a result,
Shree’s products moved quicker off retail shelves: every 0.65
seconds in 2001-02 and every 0.58 seconds in 2002-03. As the
company’s primary customers - dealers - accelerated the rotation
of their working capital, they maximized their return on capital,
ensuring brand loyalty.
• Shree accelerated footholds through a stronger Rs 3 cr advertising
campaign for its Red Oxide brand in the regional print and
electronic medium in 2002-03.
• Shree educated its principal users - the masons and architects.

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.

Challenges

Due to the nature of the product - bulky, low priced - it became


increasingly difficult to sell the product across a large territory. Besides,
higher realizations in distant territories did not mean that the gain would
accrue to the company since the incremental freight would neutralize the
price advantage. As a result, it became important to arrive at a median
between realizations and distribution costs and earn a comfortable
margin.
ERP implementation

Network that delivers online, real-time access to information and


processes. Towards this end, the company is adopting the Oracle e-
Business Suite ERP with Tata Consultancy Services as the
implementation partner. Imbibing the best practices of companies
worldwide, this ERP suite will impact all processes of the company, right
from procurement, through operations, to sales and distribution. It
involves a complete re-engineering of business processes to make them
more high-performing and tuned towards the global order.

Progressive Management

Shree Cement supplemented its attractively low capital investment


per tone with one of the lowest manufacturing costs in the Indian
cement industry.

Starting with 6 lac tones per annum of cement in 1985, the capacity was
upgraded to 7.6 lac tones in 1993. Second plant with installed capacity of
1.24 million tones per annum was commissioned in 1997, in record time
of 18 months, raising total capacity to 2.0 MTPA. Even during recession
in the industry, it was possible for it to enhance capacity further to 2.6
MTPA due to its strategic location and better brand image and is the
largest single location plant in North India. The company's installed
capacity accounted for 15 percent of Rajsthan's total capacity in 2002-03
and 2.5 percent of Indian's production in 2002-03. Cement production
increased 3.42% from 2.747 million tones in 2002-03 to 2.841 million
tones in 2003-04.

Once again, the low cost was the result of scores of initiatives across all
levels within the company. Some resulting in small savings. Some in big.
But each primarily driven by the belief that what was being done could be
done better.
Cooler fans were configured to a higher capacity so that heat could
recuperate better. A better raw mix helped Shree reduce the proportion of
high cost limestone and saved the company Rs 0.44 cr.

Jo soche woh paave

Shree has invested wisely in its people assets over the last few years to
sustain a culture of excellence through the following initiatives:

• The company incentivised ownership through the ‘Jo soche woh


paave’ scheme.
• The company trained and multi-skilled so that members could
deepen and extend their competencies across the house keeping,
maintenance, risk management, team building and environment,
health and safety functions.

Jo soche woh paave also deals with some really simple solutions. Like
the inevitable 8.30 am traffic jam of employee vehicles - 60 cars and 300
two-wheelers - at the factory gate. This posed an accident risk. I
suggested that another gate be opened for car entry only. This
suggestion was accepted and the result is a safer factory and a bigger
time saving today."

- Girish Singhal (Dy. Manager, Taxation)

CREATING LEADERS AT EVERY LEVEL

Shree Cement emphasises that creating leaders not just at the


organisational apex but at every level results in strong sense of emotional
ownership. Thus the employees are delegated with responsibility and
authority to adopt one Electric motor and related equipment for keeping
watch and care resulting in energy conservation, thus generating multiple
CEO's in the Energy Management System.
RECOGNITION AND REWARD SCHEME

The management believes in the self-actualisation of its employees by


injecting the concept of Human resource Development in all its policies
and strategies. By recognition and reward the employees are motivated
to give their best in the interests of the organization in particular and for
the society in general. So many schemes of recognition and rewards are
given to boost the morale and motivate the employees.

According to Managing Director of the company, morale management is


considered to be more challenging than material management. According
to him it is important to keep walking around and congratulating the
teams for their small victories. Efforts and their success stories are
disclosed to all in special functions so that other employees may take
inspiration from them. Employees are rewarded for doing exemplary work
in the field of reducing/ eliminating breakdown, in-house development,
better house keeping, and reduction in raw material, fuel, power and
wastage. Cash awards and Certificates of honour have been given in a
function.

For example a scrapper chain of reclaimer II is to be replaced which


takes 80 hours. The team completed this task in minimum possible time
with the result that the reclaimer was put into operation in just 36.5 hours.
The team was rewarded with a cash amount of Rs. 11,000/- and
certificate of honour.
RAS CEMENT PROJECT

Shree Cement Limited is setting up a


new green field Project at Village Ras,
Tehsil Jaitaran, District Pali of
Rajasthan. The capacity of the plant is
3000 Ton Per Day of clinker production
with an approximate investment of
about Rs. 300 Crores.

The company has already engaged


eminent Consultant for the same and all
the major orders has been placed so as
to achieve the ambitious target to
commission the plant by August 2005
which is fifteen months from the date of
first order placement i.e. May, 2004.

The main plant & machineries would be


supplied by KHD Humboldt Wedag AG -
Germany & GEBR Pfeiffer AG -
Germany. The plant will be based on
the latest Technology available and
maximum Automation would be done to
keep the minimum manpower. The
company is having sufficient mining
lease at Ras to cater its production
requirements for the upcoming 50
years.
Trust Comes From Quality At Shree Cement Limited
Shree Ultra Cement - BIS specification Shree Ultra
43 Grade Cement - 43
Grade

Fineness (m2 / kg) 225 355

Soundness - -

Le chatelier expansion Max 1.0 .084


(mm)

Auto-clave expansion Max. 0.8 .075


(%)

Setting Time (Mins) - -

Initial Min. 30 115

Final Max. 600 176

Compressive Strength - -
(MPa)

3 days Min 23 38

7 days Min33 50

28 day Min. 43 63.5

TUFF Cemento 3556 IS Specification 3556


43 Grade

Fineness Min.330 406


Specific Surface (m2 /
kg)

Setting Min.30 110


Time(Minutes.)
(a)Intial

(b)final Min.600 175


Soundness Test Max. 10 1.0
(a)Le-Chatelier
Method (mm)

(a)AutoClave(%) Max. 0.800 0.068

Compressive Min.16 39
Strength (MPa)
(a)3 days(Min.)

(b)7 days(Min.) Min.22 49

Shree Ultra Cement 53 BIS Shree Ultra


Grade Specification Cement 53-
53 Grade Grade

Fineness (m2 / kg) 225 385

Soundness

Le chatelier expansion Max. 10 1.0


(mm)

Auto-clave expansion Max. 0.8 0.606


(%)

Setting Time (Mins)

Initial Min. 30 111

Final Max. 600 166

Compressive Strength
(MPa)

3 days 27 41.3

7 days 37 54.7

28 days 53 67.6
Shree Cement expects good run in North India

Live News : CNBC -TV18

12/13/2004 11:13:00 AM

- Cement prices are expected to firm up in the coming months, on


the back of nearly 8%-9% growth in demand. Rajasthan-based
Shree Cement is confident of achieving a good growth in both its
top and bottom line.
- MK Singhi, ED, Shree Cement, told CNBC-TV18, "Supply is now
almost matching demand, and it looks like in the next three
months, till March, demand will definitely be more than supply, and
that will mean the market will be ready to give a better price. The
present price is still less than the price in March 2004, so that
gives an indication that the prices will go up to some extent, and
that will be a good time for the cement industry, especially in North
India. Till November, the growth in demand is about 8%, and it
should remain so for the next four months also, the way the
manufacturing sactor is showing growth in North India. Since no
new capacities are coming up, the prices should be good in North
India."

Shree Cement sells 90% of its product in North India, where demand is
strongest, with up to 10% going to Uttar Pradesh. Its present capacity is
2.8 million tonnes, but it does not have a share in the export market at all.
It enjoys up to 11% of the market share in North India.

The company enjoys a low power cost, due to the 36 MW captive power
plant at its disposal, and has the lowest variable cost per tonne in India.
Because of its proximity to the northern parts of India, Shree also has a
relatively low freight cost, which results in a higher realisation. It's captive
limestone reserves are estimated at over 400 million tonnes.

In the second quarter results, that were declared recently, Shree


recorded a 19% year-on-year jump in net sales, up from Rs 117.43 crore
to Rs 140.08 crore. Singhi expects the company's topline growth to
continue, going forward, on the back of strong demand. "For Shree
Cement, our sales should be higher by more than 12%, and our growth in
volume should be up by 5%. That augurs well, and gives good numbers
in comparison to last year. The performance of the first six months was
also good," he said.

In Q2, the company's net profit climbed year-on-year 479%, from Rs 2.93
crore (Rs 29.3 million) to Rs 17 crore (Rs 170 million), while its operating
profit was up 70%, from Rs 23.04 crore (Rs 230.4 million) to Rs 39.19
crore (Rs 391.9 million). Operating margins soared 836 basis points, from
19.62% to 27.98%. With a 1.2 million tonne capacity greenfield cement
plant planned by next December, margins will also improve.

He said, "Our margins are quite comfortable, and will be better with the
new plant coming up. We are funding the plant at the moment with
internal accruals of Rs 100-200 crore (Rs 10-20 billion), and that will not
bother the operating parameters of our existing plant. Our optimisation in
logistic costs and energy management should also make our operating
margins better."

However, there are concerns that a rise in coal prices and freight charges
could dent the company's profitability. Pet coke prices are up by more
than 50% from last year, and Shree is totally dependent on pet coke for
its kiln and captive power plant.

Source: moneycontrol.com

Shree Cement A Pilliar Of Strength


3.
Research Methodology

3.1. Title of the Study : “Comparative Analysis of Shree Ultra


Red Oxide Cement with other Brands in Jodhpur Region.”

3.2. Duration of the Project : During the Summer internship


programme with Shree Cement Ltd, from 27th May 2009 to 6th July 2009.

3.3. Objective of Study:


The study basically across attention towards the market share of the
Shree Cement and factor responsible for measuring the satisfaction level
of the retailers such as:

1. Impact of scheme offered by the company.


2. To know the effectiveness of the shree cement Product.
3. Profit margin for the retailer associated with cement as compare to
the other brand products.
4. To know the pricing strategy of the shree cement as compare to
the competitors.
5. Consumption level of shree cement as compare to the other
products.
6. To know the level of the quality associated with the shree cement.

3.4. Type of Research : The project guide ask me to


analyze the Comparative position of Shree red oxide cement in western
Rajasthan. He suggested to visit to Retailers to know the market demand
and awareness of the quality toward the cement as compare to the other
product such as Binani, JK Lakshmi etc. The first two weeks of training,
visited the different places like Retailers, Dealers, Complex, Mall and ICH
(individual construction house) and knows the views of the contractor,
builders and individuals house owner toward our product.

During initial period of training visited 135 places:


Number of Retailers : 135
This show the rapid growth in construction at Jodhpur and huge market
scope for the cement.

Finally, Project guide (Shri Gopal Tripathi) ask me do survey on


“COMPARAIVE RESEARCH” OF SHREE ULTRA RED OXIDE
CEMENT WHIT OTHER BRANDS AMONG RETAILAIRS.

3.4.1. DATA SOURCE


Research included gathering both Primary and Secondary data.
Primary data is the first hand data, which are selected a fresh and thus
happen to be original in character. Primary Data was crucial to know
various retailers views about cement and to calculate the choice of this
brand in regards to other brands.

Secondary data are those which has been collected by some one
else and which already have been passed through statistical process.
Secondary data has been taken from internet, newspaper, magazines
and companies web sites.

3.5. Sample Size:


Number of Retailers and dealer : 135

3.6 Limitation of Study


1. Research work was carried out in one Distt of Rajasthan (JODHPUR)
only the finding may not be applicable to the other parts of the country
because of social and cultural differences.

2. The sample was collected using connivance-sampling techniques. As


such result may not give an exact representation of the population.
3. Shortage of time is also reason for incomprehensiveness.

4. The views of the people are biased therefore it doesn’t reflect true
picture.

4.
Facts and
Finding
From the present study which is based on survey the following facts are come
out, there is some factors which influence sale of two wheeler.

4.1. Factors Influence Sale of cement:


 Features:
 Price:
 Availability:
 Quality:

4.2. Findings:
Surprising result are that 90% builder and contractor are aware of our
product and Builder are impressed with its quality, finishing, and
Strength. But 75 % builder and contractor decision are based on their
contractor and retailer suggestions.

BINANI IS TOP SELLING BRAND IN JHALAMAND ARES


Reasons

- Cement readily available in different area


- Brand Name, Value
- Dark Color, Setting time less
- Customer demand due to good advertising

Shree IS TOP SELLING BRAND IN SURSAGAR ARES


Reasons :
- Contractor Choice
- Customer Preference
- Cement readily available in different area
- Brand Name, Value
- Dark Color, Setting time less
- Customer demand due to good advertising

BINANI And JK LAKSHMI IS TOP SELLING BRAND IN


LALSAGAR ARES
Reasons

- Contractor Choice
- Customer Preference
- Cement readily available in different area
- Brand Name, Value
- Dark Color, Setting time less
- Customer demand due to good advertising

Binani Is Top Selling Brand IN Madhuban Badni / Kudi


Housing Board Areas
Reasons :

- Cement readily available in different area


- Brand Name, Value
- Dark Color, Setting time less
- Customer demand due to good advertising
-
JK LAKSHMI, SHREE IS TOP SELLING BRAND IN
RATANADA ARES
Reasons

- Contractor Choice
- Customer Preference
- Cement readily available in different area
- Brand Name, Value
- Dark Color, Setting time less
- Customer demand due to good advertising
Bangur Is Top Selling Brand IN Chopasni Housing Board
Areas
Reasons:

- Contractor Choice
- Customer Preference
- Cement readily available in different area
- Brand Name, Value
- Dark Color, Setting time less
- Customer demand due to good advertising

Binani Is Top Selling Brand in Jodhpur.


Reasons :-

- Cement readily available in different area, Contractor


Choice
- Brand Name, Value, Customer Preference
- Dark Color, Setting time less
- Customer demand due to good advertising
5. Analysis and
Interpretation
Analysis and Interpretation work is very important work of any research
study. For the present study we have done a survey of 135 Retailer in
Jodhpur Region (Rajasthan). The main objective of the study is
Comparative Analysis of Shree Ultra Red Oxide Cement with other
Brands in Jodhpur Region. For this purpose some question are asked to
retailer about the brands of cement in which they are dealing. The
question wise analysis is given below with diagrammatic presentation.

Q.1. Which brands are available in your retail store?

Binani
70
JK laxm i
60
Birla
50
Ultratech
40
Am buja
30
Bangur
20
Shree ultra
10
Tuff cem ento
0
Chetak
Comparative Research in Quantity

Q.2. How much quantity is sold by you of different brands ?

2000
1800 Binani
1600 JK Laxshmi
1400 Birla
1200
Bangur
1000
Ambuja
800
Shree
600
400 Tuff Cemento
200 Ultra Tech
0 Chetak
M/Ton
Comparative Research on Price

Q.3. What is the Price of different Brands ?

234

233

232
JK Laxmi 234
231 Binani 230
Birla 230
230
Ultra tech 234
Ambuja 234
229
Bangur 228
Tuff 228
228
Shree 228
227 JK Nim 230

226

225
Price/Bag
Comparative Research on Quality

Q.4. Which brand product is most preferred by you in terms of


quality ?

70
60 Binani
JK laxmi
50
Birla
40 Ultratech
Ambuja
30
Bangur
20 Shree Ultra
10 Tuff cemento
JK Nimbahera
0
Comparative Research on Marketing Strategies

Q.5. Which brand have most effective marketing strategies ?

Binani
30
JK laxm i
25
Birla
20 Ultratech
15 Am buja
10 Bangur
Shree ultra
5
Tuff cem ento
0
Chetak
Comparative Research on Schemes

Q.6. Which of the following offer given by company satisfy


you most ?

80
60
40
International

20
Tour
Scheme/Offer

Bonus
Special
Gifts

0
Gifts
Bonus

Special
Scheme/Offer
International Tour
Comparative Research on Customers Preference

Q.7. Which of the following is mostly considered by customers


while buying cement ?

70% Quality

60% Price
50%
Advertisment
40%
30% Retailers
Suggestion
20%
Contractors
10% Choice
Availability
0%
1 6. SWOT Analysis
SWOT ANALYSIS FOR SHREE CEMENT LTD
STRENGTHS

 Focused strategy

 Lowest cost producer of cement in north India

 A secure source of raw materials

 High penetration in government projects

 Largest single plant capacity in India

 Shree power plant, which is producing electricity enough for RAS


plant

WEAKNESS

 Less dealer incentives as compared to its competitors

 Color of the cement has not been perceived greatly, green color
was most preferred

 Poor advertising and brand promotion

OPPORTUNITIES
 Real Estate demand improvement will lead to increased demand

 International expansion

 Reduction in custom duties

 Government’s thrust on infrastructure and tax incentives on


housing loans

THREATS

 Mostly concentrated in the northern region

 Increased competition from domestic as well as international


players

 Chances of decrease in demand because of slowdown in the


economy

 Supply demand mismatch may decrease the profits of the


company

2
3
4
5 7. Conclusion

- Binani Cement is available in most of the retail store.

- Binani is the top selling brand in jodhpur region.

- Shree Ultra Red Oxide Cement Stands at Sixth position in

Retail Market.

- Price of Shree Ultra Red Oxide cement is Low as compared


to other brands.

- Retailers mostly prefer the Bonus schemes.

- Customers mostly prefer the brand which is suggested to them

by retailers.

8. Recommendation and Suggestions

-Company should increase number retailers in Jodhpur Region

-Company should pay more attention toward marketing strategies.

-Company should pay attention towards retail market.


-Company should provide effective bonus scheme.

-Company should increase the quality.

9.
Appendix
QUESTIONNAIRE (RETAILERS)

Measuring satisfaction level of Retailers with Shree Cement brand via-a-via other
brands

We would like to know your views about Shree Cement Product, could you help
us by answering these few questions.

PERSONAL INFORMATION
NAME

RETAIL STORE

ADDRESS

CONTACT NO.

Ques1. Which of the following type of brand available in your retail store?

Branded Product

Shree Cement ( )

Ambuja ( )

Bangaur ( )

JK Lakshmi ( )

Ultratech ( )

Binani ( )

Tuff Cemento ( )

JK Nimbahera ( )

Non-Branded Product

___________________________________________________________

___________________________________________________________

Ques 2. How much quantity is sold by you of different brands ?

Brand Name Quantity W/s Price


Retail Price

1.

2.

3.

4.

Ques3. What is the Price of different Brands ?

Ques4. Which brand product is most preferred by you in terms of quality?

Ques5. Which brand have most effective marketing strategies?


Ques6. Which of the following offer given by company satisfy you most ?

Bonus

Gift

Special offer

International tour

Ques7. Which of the following is mostly considered by customers while


buying cement

Quality

Price

Advertising

Retailer suggestion

Contactor Choice

Availability

Place:

Date:

(Signature
)
- DATA SHEETS OF RESEARCH
STUDY

DATA SHEET - JHALAMAND

LOCATION – JHALAMAND

• Figure in Metric Tons


• Data as per survey of 8 different area in Jhalamand

Brands I II III IV V VI VII VIII M/Ton Avg.W/s Avg.


Price
R/
Price

Binani 800 - 100 - 50 20 35 - 1005 220-225 223-


230

JK Lakshmi 800 - 100 11 - 50 - - 961 225-230 231-


234

Birla 600 - 100 - - - - - 700 220-224 225-


230

Ultra - 40 - - - - 35 - 75 225-230 230-


234

Ambuja - - 100 - - 15 - - 115 226-230 231-


234

Bangaur - - - 11 50 10 50 150 271 218-222 225-


228

Tuff - - - 15 50 - - - 65 217-221 224-


Cemento 228
DATA SHEET - SURSAGAR

LOCATION – SURSAGAR

• Figure in Metric Tons


• Data as per survey of 3 different area in Sursagar

Brands I II III M/Ton Avg.W/s Price Avg.

R/ Price

Binani 25 30 15 70 220-225 223-230

Shree - - 94 94 217-221 225-228

Ambuja - 30 30 60 226-230 231-234

Bangaur - 72 - 72 218-222 225-228

Tuff Cemento 35 10 - 45 217-221 224-228


DATA SHEET - LALSAGAR

LOCATION – LAL SAGAR

• Figure in Metric Tons


• Data as per survey of 8 different area in LAL SAGAR

Brands I II III IV V VI VII VIII M/Ton Avg.W/s Avg.


Price
R/
Price

Binani 25 75 100 50 - 30 75 15 370 200-203 200-207

JK Lakshmi - - - 50 20 30 25 225 350 200-205 205-210

Birla - - - - - - - 215 215 200-205 205-207

Ambuja - - 90 50 - 50 - - 190 200-207 205-210

Tuff Cemento - - - 60 50 30 - - 140 200-205 205-210


DATA SHEET – MADHUBAN BASNI / KUDI HOUSING BOARD

LOCATION – MADHUBAN BASNI / KUDI HOUSING BOARD

• Figure in Metric Tons


• Data as per survey of 8 different area in Madhuban Badni / Kudi
Housing Board
Brands I II III IV V VI VII VIII M/Ton Avg.W/s Avg.
Price
R/ Price

Binani 35 10 35 15 40 35 30 200 200-203 200-207

JK Lakshmi 10 15 20 10 40 10 10 115 200-205 205-210

Birla 30 15 45 200-205 205-207

Bangur 10 10 200-204 205-207

Ambuja 20 10 140 10 180 200-207 205-210

Shree 10 95 15 10 130 200-205 205-210

Tuff Cemento 50 70 20 140 200-205 205-210

Ultra 15 10 15 70 110

Chetak 50 75 125

Kamdhenu 10 5 15
DATA SHEET - RATANADA

LOCATION – RATANADA

• Figure in Metric Tons


• Data as per survey of 3 different area in RATANADA

Brands I II III M/Ton Avg.W/s Price Avg.

R/ Price

Binani 25 25 50 200-203 200-207

JK Lakshmi 25 25 200-205 205-210

Birla 25 25 200-205 205-207

Shree 50 50 200-205 205-210


DATA SHEET – CHOPASNI HOUSING BOARD

LOCATION – CHOPASNI HOUSING BOARD

• Figure in Metric Tons


• Data as per survey of 5 different area in Chopasni Housing Board

Brands I II III IV V M/Ton Avg.W/s Price Avg.

R/ Price

Binani 50 40 40 130 200-203 200-207

JK Lakshmi 51 300 351 200-205 205-210

Bangur 600 50 45 695 200-204 205-207

Ambuja 100 40 140 200-207 205-210

Ultra 25 60 60 25 170 200-207 205-210


OVER ALL DATA SHEET

• Figure in Metric Tons


JHALAMAND

LAL SAGAR

MADHUBAN

RATANADA
SURSAGAR

CHOPASNI
Brands M/Ton Avg. Avg.

W/s R/
Price Price

Binani 1005 70 370 200 50 130 1825 200-203 200-207

JK Lakshmi 961 - 350 115 25 351 1802 200-205 205-210

Birla 700 - 215 45 25 - 985 200-205 205-207

Bangaur 75 72 - 10 - 695 852 200-204 205-207

Ambuja 115 60 190 180 - 140 675 200-207 205-210

Shree 271 94 95 35 50 - 545 200-205 205-210

Tuff 65 45 140 140 - 390 200-205 205-210


Cemento

Ultra - - 110 - 170 280 200-205 205-210

Chetek - - 125 - 125 200-205 205-210

Kamdhenu - - - 15 - - 15 200-205 205-210


BIBLIOGRAPHY

www.shreecement.com

literature provided by company

www.icrm.com

www. et-website-cement.pdf

Retailer scheme (2008-2009) and retailer database provided by the


company.

Articles from economics times :

“Cement companies hit hard by export ban” by Papiya Pattanayak”.

“More cement from the pak to help tame price line” by Amiti Sen.

“Shree Cement appoints advisors to spruce up performance” by Kausik


Datta & Rajesh Unnikrishnan.

Minat Terkait