Preface
With increasing competition organization all over the world are under
tremendous pressure to improve their performance, survival and
growth in present market scenario. Brand Loyalty & Consumer
Behavior plays an important role to make them at a reputed place in
today’s competitive world.
(Palak Shah)
ACKNOWLEDGEMENT
(Palak Shah)
Executive summary
Times have never been so good for the Indian cement industry. The
robust earning growth posted by cement companies since last eight
quarters has been unprecedented. Strong demand and slower capacity
addition has resulted into cement prices perking up by almost 35 to 50
percent over last two years.
Driven by solid earnings over next three quarters, cement stocks will
continue to attract the market fancy. That is the best time to reshuffle
cement portfolio in favor of potential frontrunners. Based upon
location, cost efficiency, competitiveness, cap-ex plans & financial
performance, we recommend a few winners that will outpace the
peers. The best Investment strategy would be to exploit every rise to
exit weak cement stocks & accumulate the winning stocks.
INDEX
S.No Topic Page
. No.
1. Introduction to the project 1
1. Industry Profile 2
1
1. Introduction to Indian Cement 3-7
2 Industry
1. Issues Concerning & 8-9
3 Recommendation on Cement
Industry
1. Brief History of Cement 10-12
4
1. Future Outlook & Current 13-14
5 Scenario
2. Company Profile 15-22
3. Manufacturing Process 23-26
4. Product Range 27-33
5. Market Share 34
6. Social Responsibility 35-36
7. Organization Chart 37
8. Distribution Network 38
9. Key Success Factors 39-40
10 Research Methodology 41-46
.
11 Data Analysis & Interpretation 47-56
.
12 SWOT Analysis 57-58
13 Recommendation 59
.
14 Conclusion 60
.
15 Annexure 61-64
.
16 Bibliography 65
.
The project is all about the brand loyalty and consumer behavior of
Lakshmi cement. In this project it is explained that how consumer act
towards the product & their reaction towards the brand.
Introduction:
The origins of Indian cement industry can be traced back to 1914 when
the first unit was set-up at Porbandar with a capacity of 1000 tonnes.
Today cement industry comprises of 125 large cement plants and more
than 300 mini cement plants. The Cement Corporation of India, which is
a Central Public Sector Undertaking, has 10 units. There are 10 large
cement plants owned by various State Governments. Cement industry in
India has also made tremendous strides in technological upgradation
and assimilation of latest technology. Presently, 93 per cent of the total
capacity in the industry is based on modern and environment-friendly dry
process technology. The induction of advanced technology has helped
the industry immensely to conserve energy and fuel and to save
materials substantially. Indian cement industry has also acquired
technical capability to produce different types of cement like Ordinary
Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland
Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid Hardening
Portland Cement, Sulphate Resisting Portland Cement, White Cement
etc. Some of the major clusters of cement industry in India are: Satna
(Madhya Pradesh), Chandrapur (Maharashtra), Gulbarga (Karnataka),
Yerranguntla (Andhra Pradesh), Nalgonda (Andhra Pradesh), Bilaspur
(Chattisgarh), and Chandoria (Rajasthan).
Exports :
Apart from meeting the entire domestic demand, the industry is also
exporting cement and clinker. Major exporters were Gujarat Ambuja
Cements Ltd. and L&T Ltd.
Technological change :
The Indian Cement Industry is the world’s second largest after China’s
Cement Industry. But, percapita production and consumption are low as
compared to the world standards. On the technological front, Indian
cement Industry can be regarded as highly competitive and is
comparable with the best in the world, in terms of quality standards, fuel
consumption etc. Indian cement plants, which depended heavily on wet
technologies in the sixties and seventies, have subsequently shifted to
modern energy efficient dry technologies. This trend is more perceptible
in the last decade. The latest surge in the demand for cement is driven
by the boom in the housing sector and infrastructure sector. The post
deregulation scenario is marked by major reorganization of many of the
capacities in the Indian cement industry.
• High Transportation Cost is affecting the competitiveness of the
cement industry. Freight accounts for 17% of the production cost.
Road is the preferred mode for transportation for distances less
than 250km. However, industry is heavily dependant on roads for
longer distances too as the railway infrastructure is not adequate.
• Cement industry is highly capital intensive industry and nearly 55-
60% of the inputs are controlled by the government.
• There is regional imbalance in the distribution of cement industry.
Limestone availability in pockets has led to uneven capacity
additions.
• Coal availability and quality is also affecting the production.
The word Cement literally means a substance that can bind material
together and can acquire strength on hardening. The cement as we
know today is a specialised building material which is a result of various
innovations over the past and is made in sophisticated manufacturing
facilities.
Its use associated with ancient civilizations... The oldest use of cement
dates back to the thousands of years old Egyptian civilisation. The
Egyptians used natural cement made by combining limestone and
gypsum for the construction of their massive and highly impressive
pyramids. The fact that the Egyptian
Pyramids have proudly stood the test of time over such a long period of
human history is a testimony to the phenomenal strength of cement.
However it must be stated that the ancient Egyptian cement was very
different from the cement in use today.
homogenous mixing and intense heating of the raw material thus vastly
improving the quality of the cement produced. The sophisticated quality-
testing equipment employed by modern cement plants further helps in
ensuring the quality of the cement produced.
Cement industry, 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.
Future outlook:
Outlook for the cement industry looks quite bright. Given the sustained
growth in the real estate sector, the government's emphasis on
infrastructure and increased global demand, it looks as if the juggernaut
of cement industry would continue to roll on the path of growth.
1. The future outlook for the cement industry looks more promising and
optimistic then ever before. This is because the cement industry grew by
8.5 per cent in FY05, while the economy grew by around seven percent.
The future could be a lot better. We believe that cement demand in the
country in FY06 will outpace the long-term average growth rate with
buoyant economy.
4. While demand side looks bright, there won’t be any large capacity
additions in near future, even as India would need 8-9 million tonnes
additional capacity every year till FY08 to meet the incremental demand.
Current scenario:
Founders
Introduction:
The year 1982. The place - a remote area in the zero-industry district of
Sirohi in Rajasthan. The story of JK Lakshmi Cement Limited thus
began. And today as it completes 25 years of existence, it is a company
that’s renowned for its strength, quality and performance.
An integral part of Major Projects like IGNP, Sardar Sarovar Dam and
major corporations like L&T, Reliance, Essar and Airport Authority of
India, jk Lakshmi Cement also offers value added products like Plaster of
Paris known by the brand name ‘JK Lakshmiplast’ and Ready Mix
Concrete popularly known as JK Lakshmi Ready Mix Concrete’.
Today JK Lakshmi Cement has become the preferred choice among the
discerning customers, because of its consistency, high level of quality
and impeccable customer service.
The high standard of advertising has been another feather in the cap of
JK Lakshmi Cement Ltd. This has not only helped it to reach out to its
customers but also in connecting with them at an emotional level. No
wonder then that "Mazbooti Guaranteed" is now a term that is
synonymous with JK Lakshmi Cement.
Award:
December 23, 2009: Mrs. Vinita Singhania, Managing
Director, JK Lakshmi Cement was today conferred with the
prestigious Outstanding Businesswoman Award instituted by the
PHD Chamber. Ms. Singhania received the award from Finance
Minister Mr Pranab Mukherjee.
Future outlook:
Lakshmi cement is recognized as an efficient competitive &premium
cement brand. It is planning to increase its production to 12 millions
tones by 2012.
Process:
1. RAW Material:
Limestone is the basic raw material used in the
manufacturing of JK lakshmi cement. Good quality cement grade
limestone is abundantly available in mines within the JK Lakshmi factory
premises, which is spread over an area of 400 hectares.
2. Blasting:
Limestone is obtained from mines through the process of
heavy blasting conducted under strict supervision and safety
precautions. The limestone obtained from the JK Lakshmi mines is of
such superior quality that it removes the need to add clay or any
other additional raw material that is generally added during the
process of cement manufacturing.
3. Crushing:
The limestone in the form of huge stones is loaded in
dumpers and transported to the Crusher. The machine is used to crush
the huge stones into smaller and manageable chunks that are 20 mm in
size.
4. Quality Check:
Limestone obtained from the crusher undergoes a
rigorous quality check using Gamma Metrics Machine and Cross Belt
Analyser.
5. Circular pre-blending:
The engineers at JK Lakshmi ensure that only
the best quality of limestone is sent to the circuler pre-blending stock
pile.
6. Grinding:
Using an accurate weighing mechanism, the material is
fed into the Loesche mill/Vertical Roller Mill. It is a vertical ateel mill with
huge rollers used for grinding the material.
7. Blending Silo:
Powger form of raw material of different grade is
mixed homogeneously in the blending silo with the help of air slides.
8. Pre-heating:
The ground raw material is fed into a six-stage Pre-
heater, where it meets the hot gases rising from the kiln. The Pre-
heating of material before the calcinations stage helps save energy.
9. Calcination:
10. Cooling:
Subsequent to the intense heating, the raw material is
now sent to a CFG cooler that brings the temperature of the material
down to 200 degress Celsius. The sudden cooling of the material
results in the formation of grey-coloured nodules known as Clinkers.
Product range:
No wonder the discernible buyers prefer this cement over other brands
owing to its consistency, higher level of quality and impeccable customer
service.
Also not surprising is the fact that the decision makers of the nation's
important projects like IGNP, Sardar Sarvorar Dam and major
corporations like L&T, Reliance, Essar and Airport Authority of India
chose JK Lakshmi Cement over other brands.
JK Lakshmi Cement Ltd was also the first Cement Manufacturer in North
India to use coloured bags to help the customer in segregating different
products. It also has a regular contact program with masons, dealers
and architects to keep in tune with their needs and requirements. One of
the many innovative initiatives the company took was to have a mason's
club that now has over 15000 members. Under this program the masons
are given an insurance cover against accidents absolutely free of cost,
besides educating them on the latest in construction activities.
The high standard of advertising has been another feather in the cap of
JK Lakshmi Cement Ltd. This has not only helped it to reach out to its
customers but also in connecting with them at an emotional level. No
wonder then that "Mazbooti Guaranteed" is now a term that is
synonymous with JK Lakshmi Cement.
Superior quality and controlled processed spherical grain size fly ash
results in concrete with increased workability, even at lower water-
cement ratio. This results in more strength of concrete and reduces
bleeding during concreting. Due to better workability at reduced water-
cement ratio, concrete becomes impermeable. This makes concrete
more resistant to chemical attacks.
The Ca(OH)2 produced during hydration is highly susceptible to sulphate
attacks. Perfectly processed fly ash which has reactive Silica reacts with
Ca(OH)2 and converts it into C-H-S gel. Thus JK Lakshmi Cement 53
(blended) yields concrete with moderate sulphate resistant quality
JK 53 GRADE
High-rise buildings
All types of R.C.C. works
Industrial works
Pre-stressed concrete work like bridges, silos, etc
Pre-cast elements such as Railway sleepers and concrete poles
Commercial Buildings
Industrial Constructions
Multi-storied complexes
Cement concrete roads
Heavy Duty Floors
JK Lakshmi Plast
The concept of using site-mix concrete is fading away across the world.
This is because site-mix concrete is dependent on manual labour, on-
site mixing and overall supervision of construction. Moreover, how sure
are you of the quality of the Cement Bags being delivered? And does the
quantity match the promise? These and more invisible issues are
effectively removed by using RMC and with JK Lakshmi you are
guaranteed quality with quantity.
By using JK Lakshmi Power Mix, you not only get peace of mind on the
quality intangibles but also effect savings on your total cost of
construction. Our studies indicate that by using JK Lakshmi Power Mix,
you can achieve almost 15.5% savings in construction costs in terms of
factors such as quality and Wastage-avoidance.
Market Share of major cement
players:
M A R K E T S H A R E O F M A J O R P L A YE R S O F C E M E N T C O M P A N IE S
A m b uja c e m e nt e a s te rn ltd
A s s o c ia te d c e m e nt c o s ltd
B ina ni c e m e nt ltd
B irla c o rp o ra tio n ltd
C he ttina d c e m e nt c o rp .ltd
18% 2%
21% D a lm ia c e m e nt ltd
G ujra t a m b uja c e m e nts ltd
2%
Ind ia c e m e nt ltd
14% J K L a k s hm i c e m e nt ltd .
6%
M a d ra s c e m e nt ltd .
3% 2%
10% M ys o re c e m e nt ltd .
2% 4% 6%
2% O C L c e m e nt ltd .
2% P ris m c e m e nt ltd
2% S hre e c e m e nt ltd
4% ultra te c h c e m e nt ltd .
o the r c e m e nt c o m p a nie s
Naya savera
The integrated family welfare programme called Naya Savera was
launched in July 2004 in collaboration with the Population Foundation of
India, with the objective of providing health related and family planning
advice to the families of masons and villagers in general. In the year
2005-06, the Naya Savera team conducted 728 mobile clinic visits and
2168 household visits. There have been 12000 beneficiaries of this
programme till date.
Medical camps
JK Lakshmi Cement Limited frequently sets up medical camps for the
benefit of the physically challenged. As part of these camps, the patients
receive free medical help from qualified doctors and appropriate
supportive equipment are also distributed. The facilities of free eye
operations and post-operative treatment are also provided to eye
patients as per their requirement.
Environment
JKLakshmiCement Limited is deeply conscious of its responsibility
towards the environment. Extensive plantation of trees, keeping the
emissions within strict norms, treatment of the effluents and conservation
of water are some of the issues that are receiving regular focus from our
management.
ORGANISATIONAL CHART
Chairman
Functional General
Managers
Deputy General
Managers
Managers
INTERNAL FACTORS:
Sound Internal Control System: The Company has a sound system of
internal controls for the recording & reporting of the various financial
transactions, efficiency of operations and compliance with relevant laws
and regulations.
Cost management: The Company has a good cost control system with
latest technology available with high production capacity.
Quality control: The company has a quality control system in which the
cement thus produced is examined and is separated from the low
quality.
Capacity utilization: The Company has the capacity of 3.5 million tones
and due to availability of high capacity production plant.
EXTERNAL FACTORS:
Raw material availability: Good quality of limestone availability is the
major advantage of the company. Due to the situation of the plant at the
base of Aravali.
Research objective:
Competitor analysis.
To know about the reactions of the people in the market about the
existing or newly introduced products of the company.
Research design:
Research design for my project was a mix. It was descriptive as the data
was collected from a sample size of 50 dealers in the area. A survey was
conducted taking a sample and the answers were taken out. The affairs
related to the product, which exists at present, were all derived from the
sample size. It was analytical as the data, which already exist, were
considered.
It was also a quantitative as well as qualitative as the particular piece of
sample was selected and the survey was carried out. The qualitative
approach of the project was to judge the behavior of the sample size
taken towards the different products produced by the company.
Sample design:
Sample design for the project was started clearly after deciding the
objectives of the research. The sample was from the finite number from
the population. The survey was conducted in the city among the various
dealers of Lakshmi cement of different areas.
The sample unit was taken from the dealers in the city from different
areas. The source list was the agents dealing in Lakshmi cement of
particular area. Few dealers of each area of survey were selected
randomly. Different dealers from Raja Park, Durgapura, Bani Park, Tonk
Phatak, Vaisahli Nagar, Pratap Nagar, Bhankrota, Gopal Pura, and
Mansarovar were taken into consideration.
The sample size for the project was 50, and each time of survey they
were selected randomly. The parameter was to consider the population
size on their individual behavior on the basis of quality, margin and
preference of the dealer. One area for the survey was selected for each
day to lower down the cost of the project.
Area Sampling:
Primary sources:
Interview: Face to face interview was conducted with the dealer.
Questions were asked to the dealer and different answers were collected
and were arranged randomly.
Questionnaire: a particular pattern for the questionnaire was decided
and on the basis of that some answers were derived.
Secondary sources:
Company Journals: Data was also collected from company yearly
journals of JK corp. and also from monthly journal Lakshmi darpan.
Magazine: also magazines like icfai monthly journal were used as a
source for data collection.
JK Lakshmi
Cement 53
(Blended)
JK Lakshmi's 53
Grade O.P.C.
JK Lakshmi's 43
Grade O.P.C.
Others
Interpretation:
When the question was asked overall result for each product was as
follows:
More than 50 % of the sample size agreed for 53 grade blended. Around
20% agreed for 53 grade OPC, 10 % for 43 grade OPC and more than
10% preferred other brands.
1. Builders
2. Institutional buyers
3. Households
4. Others
person
Builders
Institutional buyers
Households
others
Interpretation:
JK Lakshmi Cement 53
(blended)
JK Lakshmi's 53 Grade
O.P.C.
JK Lakshmi's 43 Grade
O.P.C.
others
Interpretation:
More than 50% of the dealers had the monthly consumption of 53 grade
blended at a high rate. More than 20 % sale is of 53 grade O.P.C.
around 10% agreed for 43 grade O.P.C and around 10% agreed for the
other products in the market.
JK Lakshmi Cement 53
(blended)
JK Lakshmi's 53 Grade
O.P.C.
JK Lakshmi's 43 Grade
O.P.C.
others
Interpretation:
More than 50% of the sample size prefers 53 grade blended to the
customer to buy due to high compressive strength. Around 25% agree
for 53 grade O.P.C.. Only 20% of the sample agreed for 43 grade O.P.C.
less than 10 % agreed for other brand in the market.
1. Pamphlets
2. Banners & hoardings
3. Trade fairs
4. Others
pamphelets
trade fairs
others
Interpretation:
Around 20% dealers do their sales promotion by pamphlets but more
than 50% prefer hoardings & banners. More than 15 % adopts trade fair
and less than 10 % follows other techniques.
Retail ch ain
Agents
others
Interpretation:
Around 75% dealers use direct customer selling. More than 10% uses
retail chain distribution. Only 6% uses agents as the distribution channel
and 4% uses other channels.
1. 100-1000
2. 1000-2000
3. 2000-5000
4. ABOVE 5000
100-1000
1000-2000
2000-5000
above 5000
Interpretation:
60% customer buys bags between 100-1000. 20% dealers agree that
there are customer who buys between 1000-2000. Only 10% customers
of each are there who purchases between 2000-5000 & above 5000.
1. Gujrat Ambuja
2. Binani
3. Birla
4. Others
Gujarat Ambuja
Binani
Birla
Others
Interpretation:
60% prefer Gujrat Ambuja other than Lakshmi cement as their choice.
20% prefer Binani. 10 % support Birla and other 10% prefer other
brands.
Customers are loyal towards one brand but not in cement. According to
the findings Gujarat Ambuja has major share in Rajasthan. It is also
found that JK Lakshmi cement has 4 % share in the total Indian market.
Housing sector is expected to remain the largest cement consumer in
coming years. Cement consumption in India is forecasted to grow by
over 22% by 2010-11 from 2008-09. As the real estate sector is at
boom many new companies are entering into cement industry. The
cement companies that are playing today have great opportunity.
LIMITATION OF RESEARCH:
• Waiting line: For the data required some time problem of waiting
line use to occur. Dealers were not available at time. Some time
problem also occurred that dealers had no time.
SWOT ANALYSIS:
Strength
1. Availability of raw material in abundance
and engineers.
Weakness
1. Limited market.
5. Heavily financed by debt and hence any rise in interest rates will
Opportunity
1. Growth in real estate sector
5. Loosening of regulations
6. With the growing competition the company has also the
Threat
1. Entry of new competitor in the cement manufacturing.
of the company
4. New regulations
RECOMMENDATION:
• What matters for most of the cement buyers is the price of the
cement and then the quality. While visiting market for cement
purchase, they don’t care about which brand they are going to buy.
• To grow its market in the area where it does not have its network.
• To keep its tag line ‘Mazbooti Guarantee’ alive it has to check its
CONCLUSION:
product.
Annexure: (1)
prefer?
1) Gujrat Ambuja
2) Binani
3) Birla
4) Others
Annexure:(2)
(Questionnaire)
SOLICITATION
Dera Sir/Madam,
We are conducting a survey on behalf of JK
Lakshmi cement as a part of my ‘summer training project.’ I would be
extremely benefited if you answer the following questions. I assure you
that the information provided by you will be used for my project work
only.
NAME: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
ADDRESS & CONTANT NO: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_____________________________________
_ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
YOU ARE A:
>DEALER
>RETALIER
>SUB DEALER
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _ __ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ __ __ _ _ __ _ __ _ _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ __ _ _ _ _ _ _ __ _ _ __ _ _ _
_ _ _ _ _ __ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _
USEFUL COMMENTS: _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _ _ _
_ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _
THANKS A LOT
SONU AGARWAL
Bibliography
Book Refrence
• Research Methodology by C.R.Kothari
• Marketing Management by Ramaswami &
Namakumari
Internet
• www.jklaxmi.com
• www.google.com
Journals
• JK Corp monthly journal
• Business today
This is to certify that Mr. Palak Shah has undergone summer training for 45
days i.e. 15.5.2010 to 30.6.2010 in our esteem organization and his topic was
brand loyalty and customer behavior of JK Lakshmi Cement at Jaipur.
He had been sincere and dedicated to the project assigned to him and we wish
him good luck for his future.
I.M.TIWARI
Dy. General Manager(Mktg.)