TRAINING PROJECT REPORT ON A Study of Customer Perception about Cement Purchasin

g A Training Project Report

Submitted in partial fulfillment of the requirements for the
Award of the degree of
Bachelor of Business Administration From University Of Kota, Kota (Raj.). Academ
ic Session 2006-2009 PROJECT GUIDE: SUBMITTED BY: Miss Manupriya Gaur Miss Vinit
a Piplani BBA II OKIMR, Kota OM KOTHARI INSTITUTE OF MANAGEMENT & RESEARCH, KOTA
. (AFFILIATED TO UNIVERSITY OF KOTA, KOTA) OM KOTHARI INSTITUTE OF MANAGEMENT &
RESEARCH (Affiliated to University of Kota, Kota, Approved by All-India Council
for Technical Education-Government of India and Sponsored by Om Kothari Foundat
ion, Kota) CERTIFICATE This is to certify that Miss Vinita Piplani a student of
BBA II Year at Om Kothari Institute of Management and Research has completed Tra
ining Project Report entitled Customer Perception about Cement Purchasing . The pro
ject has been completed after studying for one year in BBA course and for partia
lly fulfilling the requirements for award of degree of Bachelor of Business Admi
nistration of University of Kota, Kota.
The Training Project Report has been completed under the guidance of Ms. Manupriy
a Gaur of OKIMR and is as per norms and guidelines provided. Dr. K.C. Shringi Ms.
Manupriya Gaur Director Academic Guide Kota Date: A-1, Special I.P.I.A. Jhalawa
r Road, Kota-324005 ?: 0744-2490878, 2490402, E-mail: oki_mr@rediffmail.com Fax:
0744-2438069 OM KOTHARI INSTITUTE OF MANAGEMENT & RESEARCH (Affiliated to Univ
ersity of Kota, Kota, Approved by All-India Council for Technical Education-Gove
rnment of India and Sponsored by Om Kothari Foundation, Kota) CERTIFICATE This i
s to certify that Ms. Vinita Piplani a student of BBA II Year at Om Kothari Inst
itute of Management and Research, has submitted Training Project Report entitled
Customer Perception about Cement Purchasing The project has been completed after
studying for one year in BBA course and for partially fulfilling the requirement
s for award of degree of Bachelor of Business Administration of University of Ko
ta, Kota.
The Training Project Report has been evaluated and viva-voce conducted by the un
dersigned panel of examiners. The project has been found
satisfactory/unsatisfactory and is recommended/not recommended for acceptance. P
rof. Prof. Internal Examiner External examiner Kota Date: A-1, Special I.P.I.A.
Jhalawar Road, Kota-324005 ?: 0744-2490878, 2490402, E-mail: oki_mr@rediffmail.c
om Fax: 0744-2438069 PREFACE Good decisional research project result in helping
to make the best decisions that can be made at the least cost of making it. Mark
eting is a subject for all people and all seasons. We all live be exchanging som
ething so marketing is the study of exchange process, how transations are initia
ted, motivated, facilitated, and consummated.
Marketing management deals with how organizations and people can better manage t
heir exchange activities to produce income for themselves and satisfaction for o
thers. Marketing consist of asset of principles for choosing target markets, eva
luating customer needs, developing wants satisfying products and service, and de
livering value to customers and profit to the company. Effective marketing decis
ions are based on sound information; the function of marketing research is to pr
ovide information that will assist marketing managers in making decisions.
Today, in the period of down swing of the economy, I have decided to do research
work on cement industry as it effects directly to economic growth of a nation.
DECLARATION I hereby declare that the presented report entitled Customer Percept
ion about Cement Purchasing is based on the original work and indebtedness on oth
er work \ publication has been duly acknowledged at relevant place. Submitted By
:
Vinita Piplani
BBA Part-II
ACKNOWLEDGEMENTS Contrary to popular belief, preparing a project is not a solo a
ctivity. Many people collaborate, assist and guide in the production of a projec
t. Several people are involved in sharing ideas and producing this project and d
irectly or indirectly contributed to this Project. Some of deserves special ment
ion.
God and my parents, to whom I owe everything. Mr. Karun Piplani my elder brother
, a source of constant motivation and my best critic. Mrs. Jyoti Sharma, who gav
e many valuable suggestion for this book and mynieces andnephews, a source of pe
rpetual joy. I would like to acknowledgement my profound gratitude to Mr. K.D. S
hardawho gave me valuable entry into their harmonious organization to complete m
y summer training. I want to acknowledge my gratitude to my Project guideMs. Man
upriya Gaur (Faculty of OKIMR) without whose permission & guidance, I cannot com
plete my training. I would consider it my privilege to begin this Project by pay
ing my obliged acknowledgement for persons who never cased to startle me by thei
r insight & depth of understanding & their jest for life. Dr. K.C.
Shringi (director of OKIM) Mr.Mohit Panth, Dr. Vijya Singh, Miss Reena Gaur ,Mis
s Shuchi Mathur faculty, Mr.Ghanshyam Panchal librarian, Mr. Arshad Ansari compu
ter operator & Mr. Vishnu Prasad Sharma clerk of OKIMR kota who should be credit
ed for availing me an opportunity to work with such generated organization. I wo
uld like to thanks to Rashi Mehrotra, Shivani Mittal, Neha Singhvi, Divya Soni w
hose invaluable support & encouragement has done much to make this Project a suc
cess. EXECUTIVE SUMMARY The word Cement may be defined as a substance, which can j
oin two of more pieces of some other substance together to form a unit mass. Cem
ent is a fine power which when mixed with water and allowed to set and harder ca
n join different components together to give a strong structure mechanically. Th
us cement can be used as a founding material for bricks of for founding solid pa
rticles of different sizes (rubble masonry) to form a monolish.
Cement is an essential commodity, which is available in two types, the OPC and t
he PPC. India is the second largest producer of cement. The company is maintaini
ng its TPM (total productivity maintenance) policy TPM of each and every activit
y in the industry with special care for profitability with the investment of emp
loyees.
The assigned title of the project is Customer Perception about Cement Purchasing t
hat focuses over the Customer Perception about Cement Purchasing in Hadoti. It a
lso focuses over the various factors like demand, sale, quality, reliability and
consumer expectations etc. The researches descriptive in nature for this purpos
e questionnaires and direct communication with all the competitors as well as de
aler and retailer is to be used. Besided response of contractors and builders is
also consider for determine the purpose of research.
At last the project will be beneficial both for company as well as reader who wa
nt to gain inside knowledge about Customer Perception about Cement Purchasing.
The questionnaire and direct interview are used as the sources of data. The curr
ent problem that the company is facing is also identified with their probable su
ggestions are included in the report. This report will be beneficial for both th
e company and for those who want to gain knowledge about the cement industry and
its prospects.
All cement having two grades OPC & PPC generally the OPC cement is more preferre
d by the wholesaler / retailer. But in the case of final customer very few custo
mer are having knowledge about OPC & PPC. the various factors that affect the de
mand of cement as well as particular brand sales are like quality, prices, seaso
n, promotion strategy of company or competitors, relationship with suppliers, di
scounts and supply position because all these helps to create demand of cement.
But the quality is the factor, which is considered by most of suppliers as well
as customer. This is reason that all cement company s emphasis on quality in their
advertising.
Price is the second consideration factor because the price difference among vari
ous brands is generally very less as price determined for basis and CMA determin
e the prices. There is no price elasticity of demand as cement is essential comm
odity its demand is not influenced with increases or decreases prices in case of
final consumer. But wholesales and retailer are slightly influenced by prices.
There is no seasonal impact on demand but generally Apr., May and June are consi
dered as a peak time. promotional strategies of company / competitors have a cru
cial role in positioning the brand image as it is clear that quality is most imp
ortant factor, so advertisement mainly emphasis on quality (for Ambuja- Virat co
mpressive strength and for Birla plus har Nirman ki jan).
CONTENTS Certificates
Preface
Declaration
Acknowledgement Executive Summary Chapter 1 Introduction of Cement Industry Chapt
er-2 Conceptual Framework Chapter- 3 Research Methodology Chapter -4 Analyzing a
nd Interpretation of Data Chapter -5 Findings and Conclusions Chapter-6 Suggesti
ons Bibliography Annexure Questionnaire CHAPTER 1 INTRODUCTION OF CEMENT INDUST
RY INTRODUCTION OF CEMENT INDUSTRY IN INDIA 1.1 Cement Industry in India Size o
f the industry:India is the second largest cement producer in the world with cem
ent production at 94 mn. Tonnes and consumption at 92
mn. tonnes during 1999-2000. The industry is highly fragmented in
nature with around 55 companies controlling a total capacity of around
110 mn. tonnes. The high fragmentation is a result of low entry barriers
like easy availability of technology and the commodity nature of the
product. However, cement plants are capital intensive and a green-field
cement plant of the 1-mtpa capacities requires an investment of around
Rs. 330 crores. The typical asset turnover ratio for a new cement plant
would be around 1.3 times.
Growth in demand:Cement is widely used for civil construction activities, which
comprise housing construction, industrial construction,
and infrastructure construction. Housing construction is estimated to
account for around 55% of the total cement consumption, while the
same figures for infrastructure and industrial construction are estimated
to be around 20% and 25% respectively. The industry is growing at a
compounded annual rate of around 8% for the last 8 years and is
expected to grow at around 7-9% in the short to medium term.
Key Inputs and Cost structure:Transportation, coal, power and limestone costs ac
count for around 75-80% of the total cost of sales. [1] Limestone is the main ra
w material required for the cement
manufacturing process but it is a low value mineral and accounts for
only 5-7% of cost of sales. Transportation of limestone across large
distances is not viable and therefore proximity to limestone deposits is
the main consideration in setting up a cement plant. Limestone reserves
are concentrated in specific regions of the country; hence cement plants
are clustered in those areas. However cement demand is dispersed
across the country, with concentrations near urban conglomerations,
which in most cases are far from the cement plants. This has resulted in
long transportation leads for cement.
[2] Coal costs account for around 15-17% of the cost of sales. The
quality of coal available in different regions of the country varies
significantly. Also the plants are located at varying distances from the
coalmines. Coal also being a light material, transportation costs
comprise a significant proportion of the landed costs and is more than
50% for some cement plants. Some cement plants either located near
the ports or at long distances from the mines, import coal and blend it
with domestic coal.
[3] Power costs account for around 22-25% of the total cost of sales and
about 100-105 KW/h is consumed for producing 1 MT of cement.
Power is a critical input to the cement manufacturing process. Frequent
power cuts and declining quality of power in some states has
encouraged many cement companies to set up captive power plants.
[4] In terms of average price (Rs/MT basis) the value of cement is a low
as compared to other commodities that are widely transported. Thus,
the transportation and handling charges for cement are quite high. As a
result, transportation costs, on average account for around 25-28% of
the cost of sales. Based on the distance of the markets from the cement
plant that service them, the retail prices of cement vary very widely
across the country.
Industry Structure and Price fluctuations:The concentration of limestone reserve
s in certain regions, high transportation costs of
cement and low entry has resulted in fragmentation of the industry, with
several players operating in the market. Fragmentation has resulted in
high level of competition in almost every market. Large markets like
Mumbai and Delhi have more than 10 active players. Therefore,
regional demand-supply situation in market plays an important role in determini
ng prices. Cement demand is seasonal. The demand level falls in the monsoons
and rise sharply in summer. For instance, in 2000-01, the monthly
demand in August (trough for the year) was around 15% below the
average monthly demand, while for March (peak for the year) it was
around 18% above the average monthly demand.
Cement manufacturing process is a continuous process. Hence a typical
cement plant needs at least 15-day planned shutdown maintenance, at a
stretch, for a year, other than unplanned shutdowns that might happen at
other times round the year. Cement is hygroscopic (absorbs moisture)
and consumers have distinct preference for fresh cement. Hence
inventory levels of finished goods are low. These factors limit the
availability of a cement production from a plant round the year. Power
cuts, non-availability of rail and trucks at some points of time in a year
(due to accidents, strikes etc) further limit the availability of cement
production at other points of time in a year.
The demand-supply balance, seasonality of demand and non-
availability of plant for cement production at some points of time in a
year, results in price fluctuations round the year.
Large Plants (Large Plants means capacity more than 0.198 Mn.T. per annum) Compa
nies (Members)( Nos.) 55 Cement Plants( Nos.) 127 Installed Capacity (Mn. t.) 14
6.38 Cement Production (Mn. t.) 2003-04 117.50 Plants with Capacity of Million t
ones and above(Nos.) 68 Manpower Employed (Nos.) Approx. 1,35,000 Turnover in 20
01-02 (Mn. US$) around 6,000 Mini Plants (Mini Plants means capacity less than 0
.198 Mn.T. per annum) Cement Plants( Nos.) 365 Installed Capacity (Mn. t.) 11.1
0 Cement Production (Mn. t.) 2003-04 6.00 (P) List of Cement Plants in India Sr
No. Name of the Plant Location Installed Capacity as on 31.03.2000 (mtpa) NORTHE
RN REGION 24.46 UNION TERRITORY OF
DELHI
1
CCI Ltd. (G) Tughalakabad 0.50 0.50 HARYANA 2 CCI Ltd. Charkhi-Dadri 0.17 0.17 H
IMACHAL PRADESH 3 ACC Ltd. Gagal 2.31 4 CCI Ltd. Rajban 0.20 5 Gujarat Ambuja Lt
d. Darlaghat 1.16 3.67 JAMMU & KASHMIR 6 J & K Cements Khrew 0.20 0.20 PUNJAB 7
Gujarat Ambuja Ltd. (G) Ropar 1.34 1.34 RAJASTHAN 8 ACC Ltd. Lakheri 0.60 9 Shri
ram Cement Kota 0.20 10 Mangalam Cement Morak 0.40 11 Neer Shree Cement Morak 0.
60 Sr No. Name of the Plant Location Installed Capacity as on 31.03.2000 (mtpa)
12 Birla Cement Chittorgarh 0.60 13 Chittor Cement Chittorgarh 0.80 14 J.K. Cem
ent Nimbahera 1.54 15 J.K. Cement (G) Mangrol 0.21 16 J.K. Udaipur Udyog Udaipur
0.90 17 Shree & Raj Cement Beawar 2.00 18 Lakshmi Cement Sirohi Road 2.23 19 Ad
itya Cement Shambhupura 1.40 20 DLF Cement Pali 1.40 21 Binani Cement Sirohi 1.6
5 14.53 UTTAR PRADESH 22 U.P. State Cement (G) Chunar 1.68 23 U.P. State Cement
Churk 0.48 24 U.P. State Cement Dalla 0.43 25 Diamond Cement (G) Jhansi 0.50 26
ACC Ltd. (G) Tikaria 0.60 27 Birla Cement (G) Raebareli 0.36 4.05 EASTERN REGION
 8.19 BIHAR 28 Kalyanpur Cement Banjari 1.00 29 Sone Valley Japla 0.25 30 Lemos
Cement Khalari 0.11 31 ACC Ltd. Sindri 0.60 32 ACC Ltd. Chaibasa 0.61 33 Lafarge
Singhbhum 1.43 4.00 ORISSA 34 OCL India Ltd. Ragangpur 1.00 35 IDCOL Cement Bar
garh 0.96 36 L&T Ltd. (G) Jharsuguda 0.70 2.66 WEST BENGAL Sr No. Name of the P
lant Location Installed Capacity as on 31.03.2000 (mtpa) 37 Birla Corpn. Ltd. Du
rgapur 0.60 38 Damodhar Cmt. & Slag (G) Purulia 0.53 1.13 ASSAM 39 CCI Ltd. Boka
jan 0.20 0.20 MEGHALAYA 40 Mawmluh Cherra Cherrapunji 0.20 0.20 SOUTHERN REGION
31.86 TAMIL NADU 41 ACC Ltd. Madukkarai 0.84 42 India Cements Sankaridurg 0.60 4
3 Chettinad Cement Karur 0.60 44 India Cements Sankarnagar 1.10 45 Tamil Nadu Ce
ments Alangulam 0.40 46 Madras Cements R.S. Raja Nagar 0.75 47 Dalmia Cements Da
lmiapuram 1.03 48 Tamil Nadu Cements Aryalur 0.50 49 Madras Cements Alathiyur 0.
90 50 India Cements Dalavoi 0.90 7.62 ANDHRA PRADESH 51 ACC Ltd. Macherial 0.33
52 Orient Cement Devapur 1.18 53 Kesoram Cement Ramagundam 0.90 54 Andhra Cement
(G) Vijayawada 0.24 55 Kistna Kistna 0.22 56 Zuari Cement Krishna Nagar 1.70 57
India Cements Yerraguntla 0.40 58 India Cements Chilamkur 1.30 59 Madras Cement
s Jayantipuram 1.10 Sr No. Name of the Plant Location Installed Capacity as on
31.03.2000 (mtpa) 60 Raasi Cement Wadapally 1.80 61 Priyadarshini Ramapuram 0.60
62 Sri Vishnu Cement Sitapuram 1.00 63 CCI Ltd. Tandor 1.00 64 Andhra Cement (G
) Vishakhapatna m 0.50 65 CCI Ltd. Adilabad 0.40 66 Andhra Cement Nadikude 0.50
67 KCP Ltd. Macherla 0.40 68 Panyam Cements Bugganipalle 0.53 69 L&T-A.P. Tadipa
tri 2.00 70 India Cements-Visaka Tandur 0.90 17.00 KARNATAKA 71 HMP Cements Ltd.
Shahabad 0.47 72 ACC Ltd. Wadi 2.05 73 Vasavadatta Cement Sedam 1.20 74 Rajashr
ee Cement Malkhed 2.00 75 CCI Ltd. Kurkunta 0.20 76 Kanoria Industries Bagalkot
0.33 77 Mysore Cements Ammasandra 0.57 6.82 KERALA 78 Malabar Cements Palghat 0.
42 0.42 WESTERN REGION 45.59 MAHARASHTRA 79 L&T Ltd. (ACW) Chandrapur 2.50 80 Ma
nikgarh Cement Manikgarh 1.50 81 ACC Ltd. Chanda 0.68 82 Narmada Cement Ratnagir
i 0.33 83 Rajashree Cement (G) Hotgi 1.20 84 Indo Rama Cement (G) Raigad 1.00 7.
21 Sr No. Name of the Plant Location Installed Capacity as on 31.03.2000 (mtpa)
GUJARAT 85 Sikka Sikka 1.08 86 HMP Cements Ltd. Porbandar 0.20 87 Saurashtra Ce
ment Ranavav 1.16 88 Ambuja Cement Kodinar 1.00 89 Gujambuja Cement Kodinar 2.00
90 Gujarat Sidhee Cement Veraval 1.20 91 Narmada Cement Jafrabad 0.40 92 Narmad
a Cement Magdalla 0.67 93 Tata Chemicals Ltd. Mithapur 0.44 94 L&T Ltd. Pipavav
4.00 12.15 MADHYA PRADESH 95 Satna Cement Satna 0.75 96 Birla Vikas Satna 0.80 9
7 Jaypee Cement Rewa 2.50 98 Jaypee Cement Bela 1.50 99 Maihar Cement Maihar 2.0
0 100ACC Ltd. Kymore 1.60 101Diamond Cement Damoh 1.03 102ACC Ltd. Jamul 1.58 10
3CCI Ltd. Mandhar 0.38 104Century Cement Tilda 1.20 105AmbujaCmt Eastern Ltd. Bh
atapara 1.80 106CCI Ltd. Akaltara 0.40 107Raymond Ltd. Cem. Div. Akaltara 2.24 1
08Vikram Cement Jawad Road 2.50 109CCI Ltd. Neemuch 0.40 110Lafarge Sonadih 0.30
111L&T Ltd. Hirmi 1.45 112Grasim Cement Raipur 1.80 113Prism Cement Satna 2.00
26.23 Sr No. Name of the Plant Location Installed Capacity as on 31.03.2000 (mt
pa) Grand Total: (113 Plants) 110.10 Source: CMA Statistics 2000 1.2 CEMENT & IT
S PRODUCTION PROCESS CEMENT AND ITS UTILITY: As we know that the house is the th
ird necessity of the human life and for building a house of ones dream, there is
a requirement of cement, which is used as a catalyst.
Composition: Cement is a mixture of limestone, clay, silica and gypsum. It is fi
ne
powder which when mixed with water sets to a hard mass as a result of
hydration of the constituent compounds. It is the most commonly used
construction material.
THE DIFFERENT TYPES OF CEMENT: There are different varieties of cement based on
different compositions
according to specific end uses namely Ordinary Portland Cement,
Portland Pozolona Cement, Portland Blast Furnace Slag Cement, white
Cement and Specialized Cement. The basic difference lies in the
percentage of clinker used.
Ordinary Portland Cement (O.P.C). OPC, popularly known as grey cement has 95 % c
linker and 5% of
gypsum and other materials. It accounts for 70 % of the total
consumption. White cement is a variation of OPC and is used for
decorative purposes like rendering of walls, flooring etc. it contains a
very low proportion of iron oxide.
Portland Pozolona Cement (P.P.C). PPC has 80 % clinker, 15% pozolona and 5 % gyp
sum and accounts for 18% of the total cement consumption. Pozolona has siliceous
and aluminous materials that do not possess cementing properties but
develop these properties in the presence of water. It is cheaply
manufactured because it uses fly ash / burnt coal waste as the main
ingredient. It has a lower heat of hydration. This helps in preventing
cracks where large volumes are being cast.
Portland Blast furnace Slag Cement (PBFSC) PBFSC consists of 45 % clinker, 50 %
blast furnace slag and 5 %
gypsum and accounts for 10% of the total cement consumed. It has a
heat of hydration even lower than PPC and is generally used in
construction of dams and similar massive constructions.
White Cement Basically, it is O.P.C: clinker using fuel oil (instead of coal) an
d with
iron oxide content below 0.4% to ensure whiteness. Special cooling
technique is used. It is used to enhance aesthetic value, in tiles and for
flooring. White cement is much more expensive than gray cement.
Specialized cement Oil Well Cement: is made from clinker with special additives
to prevent
any porosity.
Rapid Hardening Portland cement: It is similar to O.P.C, except that it
is ground much finer, so that on casting, the compressible strength
increases rapidly.
Different Types of Processes The wet semi-dry or dry processes can be used to pr
oduce cement. In
the wet /semi dry process, the raw material is produced by mixing
limestone and water (called slurry) and blended with soft clay. The dry
process and semi-dry processes are more fuel-efficient. The vertical
shaft technology employed by mini cement units, use the wet process
where as the rotary kiln technology uses the modern dry process. The
Indian cement industry has been progressively using the wet process
with the dry process, which now accounts for 91% of the installed
capacity.
Production process and normative capacity utilization. Cement is produced in 2 s
tages: (1) Clinkerisation (2) Grinding.
Clinkerisation takes place in a kiln and the capacity of the kiln often
determines the capacity of the cement plant. Clinker so produced is
ground with gypsum in the grinding stage to produce OPC grade of
cement. However along-with clinker and gypsum, pozzolonic materials
and slag could be added to produce other grades of cement like PPC
and Slag cement.
A cement plant with a kiln capacity of 3000tpd is often referred to as a cement
plant with a capacity of 1 mtpa. A 1-mtpa plant on an average works for 330 days
out of the 365 days in a year. The downtime of 35 days is on account of the fol
lowing:
Planned shutdown of about 15 days in a year to change the refractory
linings of the kiln.
Unplanned shutdown of about 1.5-2.0 days / working month on account
of breakdown, power failure etc., totaling about 20 days.
Hence technically, a plant working at 100% capacity utilization works
for 330 days per year only. Utilization levels below 100% could be on
account of
Lower demand and seasonality of demand.
Frequent power cuts (and no backup power).
Breakdowns due to other reasons.
Lack of transportation facility (shortage of trucks/ rail wagons): Storage
capacity at the plant site is only 3-4 days of production levels.
Unforeseen, non availability of transport (rail wagons or trucks) at some
points of time due to strikes, accidents, poor availability on account of
demand for trucks for transportation of other seasonal commodities.
Since plant capacity is expressed on a 330-day basis, a plant running for
all 30 days in a month can have a higher monthly capacity utilization
(above 100%). Also if a plant produces PPC and Slag grade of cement
or a mix of these grades along with OPC, the capacity utilization can be
higher than 100%. This is because, for the same clinker capacity,
adding slag or pozzolonic materials can produce higher amount of
cement.
1.3 CEMENT INDUSTRIES IN RAJASTHAN. Rajasthan (Northern Region) All India Ranki
ng - 1 (In Cement Production) Year Capacity Cement Production Cement Consumption
Cement/Clinker Export 2003- 04 18.52 (12.65)17.78 (15.13) 6.61 Neg. 2002- 03 17
.71 (12.65)17.28 (15.52) 6.16 - 2001- 02 17.43 (12.92)16.01 (15.63) 5.21 - 2000-
01 15.39 (12.66)14.53 (15.52) 4.74 - 1999- 00 14.53 (13.20)14.85 (15.76) 5.15 N
eg. 1998- 99 14.07 (13.08)12.67 (15.51) 4.49 0.01 1997- 98 14.92 (14.70)10.87(14
.16) 3.92 0.01 1996- 97 14.80 (15.38)8.75 (12.50) 3.35 - 1995- 96 9.80 (11.30) 7
.83(12.13) 2.98 0.01 1994- 95 9.43 (12.08) 6.95 (11.91) 2.76 0.09 1993- 94 7.16
(10.05) 5.72 (10.57) 2.66 0.05 Note: Figures in brackets are percentages to All
India total DETAIL OF CEMENT PLANTS AND GRINDING UNITS IN RAJASTHAN. Sl.No.Name
of Cement Company/Plant Location Annual Installed
Capacity
(Million Tonnes)
1 ACC Ltd. Lakheri 0.60 2 Birla Cement Chittorgarh 0.72 3 Chittor Cement Chittor
garh 1.28 4 Mangalam Cement Morak 0.40 5 Neer Shree Cement Morak 0.60 6 Aditya C
ement Shambhupura 1.75 7 J.K. Cement Nimbahera 2.54 8 J.K. Cement Mangrol 0.75 9
Lakshmi Cement Sirohi Road 2.23 10 J.K. Udaipur Udyog Udaipur 0.90 11 Ambuja Ce
ment Raj. Ltd. Pali 1.80 12 Shree Cement Beawar 2.60 13 Binani Cement Sirohi 2.1
5 14 Shriram Cement Kota 0.20 CEMENT INDUSTRY IN RAJASTHAN Position of Cement In
dustry in Rajasthan, the manufacture of cement of recent developments in India.
The increasing home market due to increased activity in building construction an
d new uses of concrete has led to considerable expansion.
The choice of location for the manufacture of cement is generally influenced by
transport costs where the raw material used is bulky, there is a tendency for th
e industry to the located near the source of row materials so that the heavy tra
nsport costs on materials could be avoided for the manufacture of 100 tons of ce
ment, 160 tons of limestone, 38 are bulky in weight and cheap in price hence, ce
ment industry is generally seen out cropping lat places but it does not rise mor
e than a few meters above the plain area.
Before independence, Lakheri was a popular place, which is a still famous for it
s quality cement. At resent these are the following cement industries functionin
g in rajas than.
MAJOR CEMENT INDUSTRIES WORKING IN RAJASTHAN 1. Acc ltd. Lakheri, Bundi (1951)
2. Birla cement works, Chittorgarh
3. Aditya cement works, Chittorgarh
4. Mangalam cement, Morak (Kota) 5. Shree cement, Beawar 6. J.K.Cement, Nimbaher
a 7. J.K. Corporation Limited, Sirohi 8. Shriram cement, Shriram Nagar, Kota
9. Binani cement ltd., Sirohi
10.Bangur cement, Beawar
As far as cement production in Rajasthan is concerned Shree cement, Beawar tops
in the list, according to the production. Now Birla Uttam also tries to increase
its capacity by generation electricity through their own thermal power plant. T
he total capacity of Birla Uttam is 4500 MT/day.
CEMENT INDUSTRY IN INDIA A report from ICRA says cement industry to grow at 8 per
cent in medium terms. It added, With the economy looking up the cement industry is
likely to grow at 8 percent in the next couple of months even as the aggregate
earnings might not improve drastically. The fundamental look bright and the ceme
nt demand in the medium term are expected to grow at around 7-8 percent. ICRA has
also predicted a supply surplus situation for the industry in the near to medium
term.
The cement companies are expected to continue to face the problem of rising inpu
t costs, as they do not have control on external cost elements such as energy an
d freight. The earnings of the cement industry on an aggregate may not improve si
gnificantly, there may be select players in the industry, who may show improve e
arnings . ICRA said.
This would include players who are constantly focusing on raising operating effi
ciently, have high economics of scale and are not dependent on few regional mark
ets above have good distribution logistics and process a good brand name, cement
sector is expected to witness a consumption growth in tune with the overall eco
nomic growth because of the strong co-relation with GDP. ICRA pointed to on goin
g road and housing projects to be the main driver of future demand of cement.
The infrastructure sector grew by 5.9% in January 2004 against 4.9% in the corre
sponding period last year. However, the growth was at the same level as in Decem
ber 2003. The index of the six infrastructure industries (crude petroleum, petro
refining, coal, electricity, cement steel) which accounts for almost 27 percent
of the industrial production index (IIP) went up by 4.7% in the first ten month
s of 2003-04 against 5.8% in April to January 2003-04.
Indian cement industry has posted a healthy growth rate of 7.81 during the year
2004-05. Cement production increased from 117.50 million tones in the fiscal 200
3-04 to 125.86 million tones in 2004- 05 and the installed capacity of the indus
try increased from 146.38 million tones in March 2004 to 152.09 million tones in
March 2005.
IMPORTANCE OF CEMENT INDUSTRY IN INDIAN ECONOMY Cement plays a crucial role in t
he building operation. Almost every phase of human activity involves constructio
n work and the industrial development and progress of a nation is directly relat
ed with the extent of its construction activities, which are mainly base on the
consumption of cement. The importance of cement industry may be given as under:
Basic ingredient in construction works
Generation of employment
Contribution to national exchequer
Contribution to Indian railways revenues
Helpful in the development of other industries
Enhancement in the national income
Huge export potentialities and quick marketability
In a nutshell, the cement industry plays a pivotal role in the national economy.
The consumption of cement is the key indicator of the country s prosperity, devel
opment and constructive activities. If proper steps were taken for the sound dev
elopment of the industry with the latest technology the industry is sure to serv
e the people and nation in a better way. It is a matter of pleasure and satisfac
tion that the
government is alive on the issue and is keen to better the position of the indus
try with a realistic and balanced development strategy so that the industry may
be brought out of the whirlpool of stagnation.
PROSPECTS FOR DOMESTIC CONSUMPTION GROWTH International experience suggests that
the per capita consumption of cement increased dramatically in the early stages
of development of a nation and as the nation develops it reaches a plateau. I h
ave all the advanced nations have reached a plateau. The per capital cement cons
umption of the less developed countries (LDC) are well below the world average,
given the fact that India s per capital income is well below the world average the
future prospects for growth of the cement industry appear bright. Firstly, at t
he existing level of per capita consumption, total cement consumption will grow
in line with per capita consumption; total cement consumption will grow in line
with per capita income. Secondly, as suggested by the experience of other countr
ies, the cement intensity of the economy is higher at higher levels of per capit
a income. Both this factors supports the optimistic assessment of prospects of d
omestic s consumption growth.
The development economical noted that the cement industry witnessed recessionary
trends. During the last few years the prime reasons for such situation. Were su
bstantial back, particulars in govt. of take of cement and industry crunch in th
e market.
But now govt. Bold and pragmatic liberalization policy coupled with structural c
hanges has brought India on the threshold of a new are of ecomonic progress.
Recently our prime minister has amended to create cement concrete road in over I
ndia. Govt. has provided special to infrastructure sector and Housing Corporatio
n, so this will create new demand in cement industry. Housing corp. is providing
loan from houses on low rates, which will enchance the demand of cement and man
y after reason like earthquake in turkey and Kargil incident etc.
So there is very bright for cement industry in next coming years. CLOSURE OF CEM
ENT PRODUCTION Fifteen large cement plants are closed or have stopped production
due to various reasons such as technological obsolescence and economic non-viab
ility. Out of fifteen cement plants, three are in Madhya Pradesh, two each in ut
ter Pradesh, Haryana Karnataka and Gujarat one each in Andhra Pradesh, Bihar, Ma
harasthra and rajas than. The government has taken a number of steps for revival
of sick industries units. These include guide lines of reserve bank of India to
banks, amalgamation of sick unit s wit healthy units and setting up of board for
industrial and financial reconstructions (BIFR) under sick industrial companies
act, national renewal fund, national equity funds etc.
Export and domestic demand of cement The total quality of various types of cemen
t produced in the country and exported during the last three years is as under:
As per the task force report on cement industry for the ninth plan there are bri
ght prospects for exports particularly to countries in the Indian sun-continent,
middles and Southeast Asia.
Financial problem in cement industry Inter regional price of cement vary on acco
unt of factors such as local demand and supply, distance of market from the ceme
nt producing centers etc. On account of demand recession, at present there is an
mis-match between the existing production capacity and demand of cement. Since
there is excess capacity in cement industry at present, there is a major capacit
y expansion plan on avail by the cement industry.
CHAPTER 2 CONCEPTUAL FRAMEWORK Perception Perception is the most important cog
nitive process. Cognition is basically a bit to information & cognitive process
involve the ways in which people process that information.
People after see the same phenomenon differently both within the organization co
ntext or outside the organization for example when there is any accident in the
factory, the supervisor may treat it as the carelessness of workers while the wo
rkers may treat it as the high headedness of management and lack of adequate pro
visions of security measures. Thus the situation remaining the same, causes have
been assigned differently by different group of person.
What is perception :- According to Robbins Perception may be defined as a process
by which individual organize and interpret their sensory in order to give meani
ng to their environment.
Perception is cognitive process, which involves the (organization) selecting, or
ganizing & interpreting the stimulus or attaching meaning to the events happenin
g in the eviornment.
Sensation and Perception :- Sensation may be described as the response of a phys
ical sensory organ. The physical senses are vision, learning, touch, small on ta
ste. Perception is something more than sensation. It correlates, integrates and
comprehends diverse sensations and information from many organs of the body by m
eans of which a person identifies things and objects.
Features of perception: - It is intellectual process: - Through which a person s
elects the data from
environments, organize it & obtains meaning from it.
Perception is basic cognition or psychological process: -
The manner in which a person perceives the environments affects his behavior. It
is a physical as well as psychological process: - In which people s action, emoti
ons, thoughts or feelings are triggered by the perception of their surrounding.
It is a subjective process: - Different people may perceive the same environment
al events differently base on what particular aspects of situations they choose
to absorb, how they organize this information and the manner in which they inter
pret it to obtain the group of situations.
Perceptual process: - Perceptual Process has two methods :
1. Simplified process of perception
2. Complex process of perception
Simplified Process It consisting of several simple process. We can take an in
put through put output approach to understand the dynamics of Perceptual Process
.
Perceptual Input Perceptual through puts Perceptual Output s Stimuli Receiving-- -
-Selecting---Organizing--- Interpreting Actions Complex Process Then approach em
phasize that there is impact which is processed and gives outputs. It does not p
resent the whole factors, which go in Input, Throughput and Output process.
Perceptual Process: Characteristic of Input or Stimuli Perceptual Input Objects
Events
People
Perceptual Mechanism Selection interpretation Organizing Perceptual Output Attit
udes
Opinions
Feelings
Values
Beha vior Characteristic of the situations Characteristic of the Percives Percep
tion is a process consisting of several sub process. We can take an input throug
hput output approach to understand the dynamics of the perceptual process. This
approach emphasis that there is input which is processed and gives output.
(A) Perceptual Inputs: - Perceptual inputs in the form of stimuli are not the pa
rt of actual perceptual process through these is necessary for the occurrence of
perception. Stimuli may be in the form of objects, events or people. Then, ever
ything in the setting where events occur can be termed as a perceptual input..
(B) Perceptual Mechnism :- Perceptual mechanism involves three elements selectio
n of stimuli, organization of stimuli and interpretation of stimuli. a. Selectio
n of stimuli: - After receiving the stimuli from the environment, some are selec
ted for further processing while others are screamed out because it is not possi
ble for a person to select all stimuli which he sees in the environment.
b. Organization of output: - After the stimuli are received, these are organized
in some form in order to make sense out of that. The various forms of organizin
g stimuli are figure ground perceptual grouping, simplification and closure.
c. Interpretation of stimuli: - After the perceptual input that have organized w
ill have to be interpreted by the receiver so that he can sense and extract som
e meaning of what is going on in the situation. 3. Perceptual Output: - Based on
perceptual mechanism, which ends with interpretation of stimuli, perceptual out
puts emerge. Those output may be inform of covert actions like development of at
titudes, opinions, beliefs, impression about the stimuli under consideration.
Components of Perception Perception is a process of sensory organs. The mind get
information through the five sense organs, viz. the eyes, ears, nose, tongue an
d skin. The perception starts with awareness of these stimuli recognizing these
stimuli takes place only after paying attention to them. These messages are then
translated into action and behavior. The major components of perception are :
1.Stimuli : The receipt of information is the stimulus which results in sensatio
n. Knowledge and behavior depends on senses and their stimulation 2..Attention :
Stimuli are selectively attended to by people. Some of the stimuli are reacted
to while others are ignored without being paying any attention. The stimuli that
are paid attention depend purely on the people s selection capacity and the inten
sity of stimuli.
3.Recognition : After paying attention to the stimuli, the person try to recogni
ze whether the stimuli are worth realizing. The message or incoming stimuli are
recognized before they are transmitted into behavior. 4.Translation : The stimu
li are evaluated before being converted into action or behavior. The evaluation
process is transmission. The perception process is purely mental before it is co
nverted into action. The conversion is translation.
5.Behavior : Behavior is the outcome of the cognitive process. It is a response
to change in sensory inputs i.e. stimuli. It is an overt and covert response. Pe
rceptual behavior is not influenced by reality, but is a result of the perceptio
n process of the individual, his learning and personality, environmental factors
and other internal and external factors at work place.
6.Performance : Proper behavior leads to higher performance. Higher performance
become a source of stimuli and motivation to other employees. A performance rewa
rd relationship is established to motivate people.
7.Satisfaction : Higher performance gives more satisfaction. The level of satisf
action is calculated with the difference and expectation. It is essential to und
erstand factors that influence the perceptual process and mould employees behavi
our towards the corporate objectives and self satisfaction.
Customer Perception about Cement Purchasing Individual act and react on the basi
s of their perception, not on the basis of objective reality. For each individua
l, reality is a totally personal phenomenon, based on that person s needs, wants,
values and personal experiences.
Thus, to marketer, consumers perceptions are much more important than their know
ledge of objective reality. For if one thinks about it, its not what actually is
so, but what consumer thinks is so, that affects their actions, their buying ha
bits, their leisure habits, and so forth. And, because individuals make decision
s and take action based on what the perceive to be reality, it is important that
marketers understand the whole notion of perception and its related concepts to
more readily determine what factors influences customers to buy.
Knowledge of the principles that influence our perception and in interpretation
of the world, enables astute marketers to develop advertisements that have a bet
ter-than-average chance of being seen and remembered by their target consumers.
Purchasing Decision :- In the evaluation stage, the consumer forms preferences a
mong the brands in the choice set. However, two factors can intervene between th
e purchase intention on the purchase decision.
The first factor is the attitudes of others. The extent to which another person s
attitudes reduces one s preferred alternative depends on two things :-
The intensity of the other person s negative attitude towards the consumer s preferr
ed alternative. The consumers motivation to comply with the other person wishes.
The second factor is unanticipated situational factor that may erupt to change
the purchase intention. In executing a purchase intention, the consumer may make
up to five purchase sub decisions a brand decision (brand A), vendor decision (
dealer 2), quantity decision cone computer, timing decision (weekened) and payme
nt method decision credit card.
Post Purchase Behavior: - After purchase the product, the consumer will experien
ce some level of satisfaction or dissatisfaction. The marketer s job does not end
when the product is bought.
Post Purchase Satisfaction: - The buyer s satisfaction is a function of closeness
between the buyers expectations on the products perceived performance. Post Purc
hase Actions: - The consumer s satisfaction or dissatisfaction with the product wi
ll influence subsequent behavior. CHAPTER 3 RESEARCH METHODOLOGY Objectives of
Study The Objectives of Study :- 1. To gain knowledge about cement industry in
kota region. 2. To understand and observe the practical work in such a giant org
anization. 3. To study customer perception. 4. To research over customer percept
ion about cement purchasing in kota region. 5. To have the direct contact with t
he employees. 6. Here the study is important as it bridges down the gap between
theoretical knowledge & practical experience for a fieldwork. Research Methodolo
gy: - Methodology for the project can be understood the following heads :- Resea
rch Design: - A research design is the basic plan that guides the collection, me
asurement and analysis of data. Decision regarding what, when, where, how much a
nd by what means concerning a research study constitute a research design. In ot
her words research design is the framework the specifies the type of information
to be collected the source of data and the procedure of data collection.
Type of Research: Researcher used Descriptive Research Sample Design :- A sample
design is a definite plan for obtaining a sample from a given population. It re
fers to the technique or procedure the research would adopt in selecting items f
or the sample. Researcher must select / prepare a sample design that would be re
liable and appropriate for this research study.
Type of Universe :- The first step in developing the sample design is to clearly
define the set of objectives i.e. the universe. The universe in this project is
all the population of kota city was consider as universe.
?Sample Size :- It refers to deciding how many people to be surveyed during the
study. Researcher planned to serve 15 people of urban area and 15 people of rur
al area of kota city. ?Sample Unit :- It refers to taking decision that who is t
o be served, i.e. the target population. During my study & survey customers of c
ement in urban and rural area. ?Sampling Method: - It refers to deciding what ho
w respondence be chosen. In this research all the aspects of research. ?Random S
ampling :- Random sampling from a finite population refers to that method of sam
ple selection which gives each possible sample combination an equal probability
of being picked up and each item in the entire population to have an equal chanc
e of being included in the sample.
Data collection Method In a real life problem it is often found that the data at
hand is inadequate, hence it become necessary to collect data that is appropria
te. There are several ways of collection data.
1. Primary Data : The primary data are those which are collected a fresh and fo
r the first time and thus happen to be original character. * Primary data is col
lected through questionnaire. It is consider as a heart of survey. It consist of
a number of questions printed on typed in a definite order on a form or set of
forms. The respondent have to answer of their own.
2. Secondary Data : The secondary data are those which have already been collect
ed by someone close and which have already been passed through the statistical p
rocess.
Concerned websites :
www.Mangalamcementltd.com
www.abc.org.uk www.google.com Library books ?Research methodology, C.R. Kothari
?Consumer Behavior
?Organization Behavior, L.M. Prasad
Limitation of the Study 1.Study conductive was not exhaustive but time & place w
as a major constraint. .2.It is assumed that information given by respondent is
authentic and to the best of their knowledge. 3.People approached were busy due
to work overload, lack of time or market tension. Sometime these were lack of co
operation from this side and thus kept away from filling of questionnaire. 4.The
study was conducted in kota city hence the result do not represent the whole st
ate and does leads toward inductive generalization. 5.Data collection was based
on survey so it has certain % of error as respondent might have replied on biase
d manner. CHAPTER 4 ANALYSING OF DATA 1. Price Preference Chart Kota Urban Bra
nd Name No. of Customers Birla Uttam 6 Vikram Cement 4 Ambuja 2 Binani 1 Others
2 Total 15 Price preference chart Kota Urban 02468 Birla Uttam Vikram cement Amb
uja Binani Others Brand Name No.ofCustom ers Series1 Interpretation :- 40% respo
ndent prefer Birla Uttam on the basis of price. 26.66% respondents prefer Vikram
 Cement and 13.33% prefer Ambuja Cement, 6.66% prefer Binani and 13.33% prefer o
ther brands in urban are on price basis.
2. Quality Preference Chart KOTA URBAN