An Overview on the Ready Mix Concrete (RMC) Market-

Research Process & Methodology

Disclaimer- We assure that the views expressed in this document accurately reflect our views based on primary and secondary research with all stakeholders. We take no responsibility for any incorrect information supplied to us by the
stakeholders .No part of this document reflecting confidential may be given, lent, resold, or disclosed to non-customers without Written permission. Furthermore, no part may be reproduced, stored in a retrieval system, or transmitted in
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 Research Process

Validation
Preliminary
Research-
Research- Primary
Stage
Scope &1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Stage 7
research
objectives •Final
• Preliminary • Establishing • Secondary •Validation •First cut •Execution
Research Key Metrics research of stage review- conclusion/r
Methodology
• Scope & • Defining activities 1,2,3 & Analysis ecommenda
for effective
Objectives overall sample primary reporting & tions/Key
implementation
size research presentation takeaways
Movers & • Resource activities for
allocations stakeholders
Shakers
(research, Draft for phase 1
marketing
presentation-
design
Brainstorming

Award
Press Award
announcement
Release Presentation
by BPG

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 Stage 1

Understanding of the subject matter & defining the scope & objective

• To understand the business of our customer who transport materials related to said domain their
operating challenges, their need for products & service solutions which will enable them to improve
their business and also market position for Mahindra Navistar.

Set objectives for learning like-

1. Business dynamics
2. Process/value chain
3. Present transport methodology, products & services
4. Buying pattern
5. Alternative transport solutions
6. Fleet management
7. Perceptions/ Gap
8. Operating conditions/problems
9. Performance & safety
10. Regulations

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 Stage 1
Scope & Objectives

• To understand the Concrete market in India- overview, market size, growth rates,
market drivers & challenges

• To provide the cost economics of operating of transportation

• To provide an overview on the vehicles demand/projections & growth rates

• Improving Acceptance of Mahindra Navistar vehicles in RMC application.

• To generate revenue for the company.

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 Stage 1
Overview & Definitions
RMC
Ready-mix concrete (RMC) is a ready-to-use material, with predetermined mixture of cement, sand,
aggregates and water. RMC is a type of concrete manufactured in a factory as per specifications of the
customer, at a centrally located batching plant. Concrete is the most versatile mouldable construction material
where intricate shapes can be achieved. It bears excellent fire and weather resistant properties.

Types of RMC
M20, M30, M40 Grades of concrete indicates compressive strength of concrete in Newtons for one mm2 area
which is called the characteristic strength of concrete after 28 days. M20 mean 20 N/mm2 similarly M30 is 30
N/mm2.

•Concrete is Made by using cement, sand and blue metal in different ratios.
M 15 :1:2:4 ratio.
M 20 :1:1.5:3 ratio.

Concrete can be made in two ways :

1. By Batching Plant : RMC (Ready mix concrete)
2. By Manually using Portable Concrete Mixer

Batching
Measurement of various ingredients of concrete like sand, metal and cement for each batch of concrete per
design is called batching. Volume batching and weigh batching are the two types of batching in vogue

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 Stage 1- Cont………..

RMC assures its customers numerous benefits:

•Uniform, consistent and assured quality of concrete
•Flexibility in concrete design mixes
•Easier addition of admixtures
•Faster and speedier construction
•Reduced inventories, material handling and storage of raw materials at sites
•Savings in labour requirements, labour costs and supervision of labour
•Reduced wastage of materials

•Cement being a vital component in RMC process is only 11.0%

•India is the second largest cement producer in the world with

205 million tonne cement capacity.

•The consumption of cement is the highest in South.

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 Stage 2
Setting the Research Process
Research Design Process
Categories of Research
Define the research problem •is concerned with discovering the general
Specify the information required to help react to the managment problem nature of the problem & the variables that
relate to it. It is characterized by a high
Exploratory research
degree of flexibility, and it tends to rely on
secondary data, convenience or judgement
Estimate the value of the information to be provided by the research
samples, surveys, case analysis.
Using either judgment or the expected value approach estimate the value of information
with varying levels of accuracy •is focused on the accurate description of the
variables in the problem model. Consumer
profile studies market-potential studies
Select the data collection method Descriptive research
product usage studies, sale analysis, price
Determine whether secondary data, a survey or experimentation will produce the required benchmarking are examples of descriptive
data and choose the form of the selected method (s) to use research

Select the measurement technique

Determine whether and how to use questionnaire attitudes scales, observation and or •attempts to specify the nature of the
projective technique Casual Research functional relationship betwen two or more
variables in the problem model

Select the sample

Determine who and how many respondents or objects to measure

Select the analytical approach This research is Exploratory

Determine the appropriate means of analyzing the data to provide the required
information & Descriptive

Evaluate the ethics of the research

Review all the aspect of the research to be certain that it is ethically sound

Specify the time and financial cost

For each research approach, develop time & financial cost estimates & compare to the
estimate value of the information & time constraints imposed by the problem

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 Stage 2
Setting the Research Process- Sampling Techniques &
Considerations

•Random sampling

•Systematic sampling

•Stratified samples

•Quota sampling

•Cluster sampling

•Area sampling

Primary Considerations in Sampling

•Population- determining who can provide the required information
•Sample frame- develop a list of population members
•Sampling Unit- determine the basis for drawing the sample (individuals, households, city blocks etc)
•Sampling Method-determine how the sample will be selected
I.Probability- members are selected by chance & there is a known chance of each unit being selected.
II.Nonprobability- members are selected on the basis of convenience or judgment or by some other means rather chance.
•Sample Size- determine how many population members are to be included in the sample.
•Sample Plan- develop a method for selecting & contracting the sample members
•Execution- carry out the sampling plan

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 Stage 2

Est. Key Metrics- Sample Metrics

• To grow from x% to y% in a specified time frame.

• To achieve the desired market share in the segment (product, market, service
specific)
• To measure customer satisfaction index
• To achieve desired volumes in the application, market, segment etc
• New product development
• Penetrate new geographic region
• JV or M&A activity
• To achieve the desired cost economics

Metrics can be evolved on detailed discussions with Mahindra Navistar team

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 Stage 3
Research Base- Secondary
In depth secondary research using appropriate database and other secondary sources

• Online journals
• Industrial magazines, texts
• Internal database
• Articles
• Desk search

Primary interviews with industry experts, competitors and end users.

• Contact list development

• Discussion guide /Questionnaire
• Discussion data collations & analysis
• Management review of findings & draft report

Also Note: The Methodology will also include several follow-up calls, profiles exchanges, emails, and the documentation as when
required at various stages

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 Stage 2

• Metrics can be both qualitative & quantitative

North South East West
Stakeholders Contact Levels
Small Medium Large Small Medium Large Small Medium Large Small Medium Large

Mgmt 1 1 1 1 1
Truck OEM's Operating 2 2 1 1
Field 2 2 1 1
Mgmt 1 1 2 1 1 1 1 1 1
Body Builders Operating 1 1 1
Field 1 1
Approximate Steel 1 1 2 1
Projected Cement 1 1 1 1 1
End-user Industries Construction 1 1 1 1
sample size Mining 1 1 1 1 1 1
80 Other
Mgmt 1 1 1
Transporters Operating
Field 1 1
Mgmt 1 1 1 1
Financiers
Sales 1 1 1 1
Experts/Govt Bodies 1 1 1
Others (drivers,loaders,labor) 3 4 3 2
Total 4 5 18 5 3 15 1 2 11 3 5 8

A mixture of telephonic based & face-to The above stakeholders, geographic coverage can be customized based on the definitions. With regards to
Face survey of key decision makers on (Small), M (Medium) & L (Large) the parameters will be set based on revenues, product line etc.
the topic of Mining Industry was
Identified by RACE. A total of 55
respondents are highlighted

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 Stage-3
Secondary Research- Templates for Purview
Contact List & Discussion Guide
Commercial Vehicle Manufacturer in the Construction Industry-Questionnaire
Contact
Company Location/ Contact Phone Contact Date:
Name Web Address Address Name Title #/Fax Email Respondents name:
ACC Concrete
Position: Full Address:
ltd 022-
Mumbai 40772600 Telephone:
Fax:
Godrej & Boyce 022-6796
Mfg. Co. Ltd. 2001 E-mail:
Mumbai Other Contact Names:
IJM Concrete
Products Pvt
Ltd 80- Objective: to capture expert views on key industry issues & trends on the Construction Industry
Blre 41226740
1) Could you provide us with a brief description about the current line of operations in the Construction
Industry (with respect to load type-
India Cements 044-
Ltd 28592476 2) Can you also elaborate on the kind of terrain (rough, smooth, deep surface etc) & gradient (degree of
operation) is the current operation being carried out?
Chennai
3) What is the range of vehicles used (tippers, trailers etc) being used in the operation based on capacity
(smaller, medium, heavy range)?
RMC Readymix 022-
(I) Pvt Ltd 26547000 4) What is the average number trips & load capacity carried out per month?
Mumbai
5) Do any geographic regions present particular advantages or opportunities?

6) Is product development reactive to end-user feedback and demand?

7) How do you manage your sourcing needs with respect to components, spare parts etc?
Questionnaires will vary for different stake holder within the
8) Are local players more prominent in this market than the major OEM?
Industry-(End-user, Marketing, Product, Senior mgmt etc)
9) Are there any service agreements in place if so? How do you organize your service network (on call
/set up near the location)

10) What is the percentage break-out of OEM direct sales, vs. indirect sales?

11) Are the products sold to public sector / private sector end-users through public tender and are they
reimbursed? What is the reimbursement scenario? – try to prompt with country specific trends you
already know

12) What are the key factors that contribute to achieving competitive advantage in this market (company
size, marketing, R&D, time-to-market, differentiation, cost advantage, core competency of a particular
player in a particular category or product, innovation, entry barriers, M&A’s, strategic alliances, etc)

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 Stage 3- Difference Between Site-Mixed Concrete &
Ready Mixed Concrete
PARTICULARS SITE-MIXEDCONCRETE READYMIXED CONCRETE
Raw Material Near Mixer at site At Batching plant
Weighing Manual Computerised
Moisture Control Approximate Lab Control
W/C ratio Manual(approx.) Computerised
Production Dosing of asmixture Manual(approx.) Computerised
Mixing Tilting mixer Non tilting single shaft mixer
Discharge Platform Transit mixer/pump
Rate 3 Cu.m/hr 30 Cu.m/hr
Degree of Control fair excellent
Quality Yield variable consistent
Testing of fresh concrete once in 25 batches every batch
Selection/Sourcing Client/consultant skilled RMC personnel
Testing Client/consultant skilled RMC personnel
Raw storage multi locational single point
Materials storage space large limited and compact
requirement
Delivery Manual Transit Mixer
Placing Mode Manual/Hoist/Crane Concrete pump
Rate 1.5 Cu.m./hr 30 Cu.m./hr.

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 Analysis, Findings, Data

7000

6336
6000

Y07 08
12222 vehicles are currently in operation as on
5280
5000 4752

4400 4224

4000 3667 3740

volume

3667

3000
c

2000
1457

950
1000
572

88 106 127
0
Y 07 -08 Y 08 -09 Y 09 10 Y 10 -11 Y 11 -12
year

8x4 6x4 TT Volume Potential

Details Y 07 -08 Y 08 -09 Y 09 10 Y 10 -11 Y 11 -12

Output -Concrete / day cum 220000 264000 316800 380160 456192
Concrete carried / vehicle /day 18 18 18 18 18
Cum Vehicles required 12222 14667 17600 21120 25344
Net Requirement of Vehicles /year 0 2444 2933 3520 4224
Expected Replacement of old vehicles @ 10 % 1222 1467 1760 2112
Volume Potential 3667 4400 5280 6336
8x4 572 950 1457
6x4 3667 3740 4224 4752
TT 88 106 127

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 Stage 4, 5, 6
Research Base-Primary

• Key decision makers on the topic of Construction Industry & Equipment

Analysis the customer requirements
manufacturers were interviewed by RACE.
Qualitative & quantitative analysis
• Participate in their company’s view on the overall construction industry-
growth, trends, investments, locations, competitive trends, drivers, Brainstorm & develop concepts &
challenges, market size , recommendations, forecast, forward looking ideas
statements etc. Several equipment manufactures on the price trends,
technology, distribution, sales trends, customer buying behavior. Etc. Specific outputs for internal
stakeholders
• The following professionals within organizations were surveyed:
•Management team
•Operating team (commercial & technical)
•Field Team
•Other include- drivers, loaders, labor etc

Impact of Concepts/Issues/Comments on
Stakeholders (color highlights in the grids)

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 Stage 7

•Define/ re-define product /service based on the concepts ideas on the voice of customer
analysis

•Form an Internal & External Cross Functional Team (CFT)

•Product Matrix-Pricing Matrix-Network/Service Mapping- Distribution

•Organizing Work Shops

The above are a few execution methodologies applied for implementation strategy

Confidential
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 Each stage of the project can be executed in detail based on specified requirements from
the Client.

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