A

Project Report on
SHREE CEMENT LTD.

Submitted in Partial Fulfillment for the Degree of

Bachelor of Business Administration

S.S. Jain Subodh PG (Autonomous) College

2018-19

SUBMITTED BY SUBMITTED TO:

Akash Sharma Dr. Rita Jain

B.B.A. V Sem Head of Dept.

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 CERTIFICATE

This is to certify that the Project Report entitled “Shree Cement Ltd.” is a
record of project work done independently by Mr. AKASH SHARMA under
my guidance and supervision and that it has not previously formed the basis
for the award of any degree, fellowship or associate ship.

Dr. RITA JAIN

S.S JAIN SUBODH P.G. (AUTONOMOUS)

COLLEGE, JAIPUR

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DECLARATION

I, AKASH SHARMA student of BBA Semester V hereby declare that the project work
presented in this report is my own work and has been carried out under the supervision of
Dr. RITA JAIN of S.S Jain Subodh P.G(Autonomous) College.

This work has not been previously submitted to any other university for any examination.

AKASH SHARMA

S.S. JAIN SUBODH P.G. (AUTONOMOUS)

COLLEGE, JAIPUR

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ACKNOWLEGEMENT

It is not often in life that you get a chance of appreciating and expressing your feelings in
black and white to thank the people who have been a crucial part of your successes, your
accomplishments, and your being what you are today. I take this opportunity to first of all
thank the Faculty at S.S. Jain Subodh P.G.(Autonomous)College, especially Dr.
K.B.Sharma, Principal, and Dr. Rita Jain, Head, Department of BBA for inculcating and
instilling me the knowledge, learning, will-power, values and the competitiveness and
professionalism required by me as a management student.

I would like to give special thanks to Dr. Rita Jain (Faculty Guide) for educating me
silver lining in every dark cloud. Her enduring efforts, guidance, patience and enthusiasm
have given a sense of direction and purposefulness to this project and ultimately made it a
success.

I express my sincere and heartiest thanks to everyone who has contributed towards the
successful completion of the Project.

Last but not the least; I would like to thank my family: my parents for supporting me
spiritually throughout my life.

The errors and inconsistencies remain my own.

AKASH SHARMA

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 PREFACE

The summer training project of management course plays an important role for a
management student to develop him into a well groomed professional. It provides him the
theoretical concepts and practical exposure in the field of application. Summer training
project also provides him an idea of dynamic and versatile professional world as well as
an exposure to the intricacies and complexities of the corporate world.

My summer training in SHREE CEMENT LIMITED Jaipur was an eye opening

experience to see the level of customer satisfaction among people of the Jaipur city &
local area

During BBA program I was taught about two dozen subjects which if not applied
properly are a simple waste of time. At SHREE CEMENT LMITED I got a chance to
apply management theories to the latest competitive and marketing oriented environment.

In two months of market exposure, I learned a lot of various aspects of organizational

structure, departments, sales, communication and their impact. Now I can say one thing
that the best way to learn is at work. It was a real interesting experience and I enjoyed
every part of it and hope that it would be helpful in my future.

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 CHAPTER :-1

Introduction

Shree Cement Limited is primarily an Indian cement manufacturer. It was founded in

Beawar in the Ajmer district of Rajasthan in the year 1979 and now headquartered in
Kolkata, is one of the biggest cement makers in Northern India. It also produces and sells
power under the name Shree Power (Captive Power Plant) and Shree Mega Power
(Independent Power Plant).

Since 2006, it has more than quadrupled its production capacity both by expanding into
new areas and increasing the capacities of the existing plants.

Shree Cement has been ranked 4th in 2017 Responsible Business Rankings developed by
IIM Udaipur. Plants are located in Beawar, Ras, Khushkhera, Jobner (Jaipur) and
Suratgarh in Rajasthan, Laksar (Roorkee) in Uttarakhand, Panipat in Haryana,
Bulandshahar in UP, Raipur in Chhattisgarh and Aurangabad in Bihar.Shree cements was
clearly the second largest cement company in India (By Market Cap) in 2018.

Vision of SCL

To register a strong consumer surplus through a superior cement quality at affordable

prices.

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Philosophy of SCL

Shree Cement is guided by the philosophy that productivity will lead to profitability
which ultimately will lead to the prosperity of the region and all concerned with SCL.

Mission of SCL
The mission of the organization is highlighted by the following:

· To sustain its reputation as the most efficient cement manufacture in the world.

· To strengthen realizations through intelligent brand building.

· To drive down cost through innovative plant practices.

· To increase the awareness of superior product quality through a realistic and

convincing communications process with consumers.

Table 1.1: Shree- Market Share

The BG Bangur family is the principal promoter of Shree Cement. Mr. H. M. Bangur is
the Managing Director while Mr. M. K. Singhi is the current executive director of Shree
Cement. It is located at Beawar, in Ajmer district 185 Kms.

New super premium brand Tuff Cemento produced with German technology has a lot of
expectations.

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Turnover of the company for 2013-14 was ?58.58 billion (US$850 million) and Net profit
was ?7.872 billion (US$110 million), 2012-13 was ?55.90 billion (US$810 million) and
net profit was ?10.39 billion (US$150 million); 2011-12 was ?34.53 billion (US$500
million) and Net profit was ?2.097 billion (US$30 million); for 2010-11 it was ?36.34
billion (US$530 million) and net profit was ?6.76 billion (US$98 million); In 2008-09 the
company posted a turnover of ?21.29 billion (US$310 million) and generated operating
profit of ?2.603 billion (US$38 million).

Initiatives for global warming reduction

Pioneered in the application of innovative Electro static precipitator technology in
Dg power generation to save fuel and combat pollution, and replaced HSD by
LDO.

Achieved unity power factor

In electrical distribution system to reduce maximum demand, and transmission
distribution losses

Partial utilization of waste heat

Initiator in the use of pet coke for power generation in India
36 MW captive thermal power plant under commissioning to generate quality power for
the plant, avoid transmission and distribution losses, and provide surplus power to
Rajasthan.
SAVINGS: Rs 496.46 Million pa

Development of DD cones
In house development of deduiling cones cyclones resulting in reduction in pressure drop,
higher outputs and lower energy consumption.

Single roller press for tow Ball Mills

Capacity enhancement & utilization of CM –2 Roller press for capacity increase and
energy saving increase CM –1, Energy saving –2.02 KWH

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Objective, CSI (Cement sustainability initiative)

The purpose of the Cement Sustainability Initiative is to:

1. Explore what sustainable development means for the participating companies and
the cement industry.

2. Identify and facilitate actions that companies can take as a group and individually
to accelerate the move towards sustainable development.

3. Provide a framework through which other cement companies can participate, and

4. Provide a framework for engaging external stakeholders.

Agenda, CSI

The 10 companies involved in the CSI have chosen to develop an agenda for three
reasons:

To prepare for a sustainable future by making a more efficient use of natural resources
and energy, and engaging with lock issues increase emerging market
To meet the expectations of stakeholders and maintain their ‘license to operate’ increase
communities across the world through a greater transparency of operations effective
engagement with society and initiating action, which lead to sustained positive changes,
and To individually understand and build new market opportunities through process
innovation, which achieve greater resource/ energy efficiency and long – term coos

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savings; product and service innovation to reduce environment impacts and work with
other industries on novel uses of – product and waste material in cement production.
The companies have identified six key areas where they believe that the CSI can make a
significant contribution towards a more sustainable society:

  Climate protection.
  Fuels and raw materials.
  Employee health and safety.
  Emissions reduction.
 Local impacts.
 Internal business processes.

To serve the fast growing National Capital Region (NCR) with immediate and prompt
services, Bangur cement is establishing a grinding capacity at Khuskhera in Alwar
District of Rajasthan, which is just 80 Kms away from the capital.
Excelling in the quality, price, availability and packaging of the product, SCL aspires to
be the first choice of the consumers. The Bangur cement plant is one

of the most modern and sophisticated plants in the India equipped with state-of the- art
German Technology.

Following factors makes Bangur cement, the SCL’s premium brand:

 Best Quality of Lime Stone: The Ras belt is among the finest quality limestone
deposits in India. Importantly, it is a single source of limestone belt where all
necessary ingredients of cement are available in limestone and there is no
dependency on outside sources, thus enabling consistency in quality.

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 Better Quality Control, Clinkerisation and superior cement grinding makes the
quality of the brand one of the best in the industry.

 State-of-the-art technology: The plant has been set up in the technical

collaboration with internationally acclaimed German cement manufacturer.
In line with its marketing strategy, Bangur cement realized sales predominantly in
the trade segment. The brand contribution to more than 40% of the trade sale of
the company, registering 14.20 Lac MT sales out of the total of 35.92 Lac MT .In
fact , trade sales accounted for 95% of total sales of BANGUR CEMENT while
non trade sales was just 5%. BANGUR CEMENT registered its 55% sales of its
total sales in its home market, Rajasthan. By selling within a smaller radius, the
company was able to notch higher net realization because of lower logistics.

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 CHAPTER :-2

PROFILE OF THE COMPANY

1.1 CEMENT INDUSTRY IN INDIA

Cement industry is a capital intensive and cyclical industry. The demand for cement
is linked to economic activity, can be categorized into two segments, household
construction and infrastructure creation.
The Indian Cement Industry today is the second largest in capacity and production
with an installed capacity of around 157 mtpa after China. The Indian Industry
charted a fast track growth of around 10% per year on an average during the last
decade. Demand has shown an upward surge in recent times buoyed by housing
sector, infrastructure development, and increase in capital expenditure by corporate
and growing retail sector. The cement demand in the country is expected to grow at
an annual rate of 8% for the next five years.
The Indian cement industry is a mixture of mini and large capacity cement plants,
ranging in unit capacity per kiln as low as 10 tonnes per day (tpd) to as high as 7500
tpd.
Majority of the production of cement in the country (94%) is by large plants, which
are defined as plants having capacity of more than 600 tpd.
The Industry faces several bottlenecks in high cost of inputs like fuel and power, high
taxes and duties and transportation cost. More than 70% of the input cost in cement
manufacture is beyond the control of the industry and is administered by regulatory
authorities. These include royalties and cess on limestone, tariff for coal, rail transport
and power, duties on finished goods, namely, central excise, local sales tax, octroi,
etc.

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 The only areas where industry can induce cost controls and economy are reduction in
consumption of inputs like fuel and power through energy efficiency, improved
productivity through planned maintenance and reduction of stoppages, etc. The
continuous efforts by the industry in these areas have brought in good results. It is
noteworthy that the energy consumption by the most efficient cement plants in India
at the level of 665 Kcal per kg of clinker and 69 kWh per tonne of cement are
comparable with the best achieved in the world.

1.2 Major Players in Indian Cement Industry:

Domestic players:

1.) ACC Limited

2.) Ambuja Cements Limited

3.) Birla Corporation Limited

4.) UltraTech Cement

5.) Binani Cement

6.) Shree Cements Limited

7.) India Cements

8.) J K Cement

9.) Grasim

10.) Jaypee Group

11.) Madras Cements

12.) Century Textiles

Major foreign players:

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 1.) Holcim

2.) Lafarge

3.) Italcementi

1.3 PROCESS TECHNOLOGY

1.3.1 Raw Materials for Cement Production

Cement is usually used in mortar or concrete. Here it is mixed with inert material (called
aggregate), like sand and coarse rock. Portland cement consists of compounds of lime
mixed with oxides like silica, alumina and iron oxide. There are three major raw
materials for cement:

1.) Limestone
Limestone is the main raw material and is the source of calcium carbonate.
Calcium carbonate is burnt to obtain calcium oxide (CaO). The other sources of
calcium carbonate are marl, chalk, seashell and coral reef. Limestone is the most
abundant source of CaO. The other user industries for limestone are iron & steel,
fertilizer and chemicals. Cement is the biggest limestone user in India accounting
for over 75-80% of limestone produced in India. The composition of limestone
used by the various sectors varies. For cement, the CaO content of limestone
should be a minimum of 44%. Typically, 1.4-1.5 tonnes of limestone are required
per tonne of clinker. Thus, for a 1 million tonne cement plant, assured availability
of cement grade limestone reserves of the order of 50-60 mt in the close vicinity
is important. 10

2.) Gypsum

Gypsum is used as a retarding agent. Ground clinker, on contact with water, tends
to set instantaneously because of the very fast reaction between tricalcium
aluminates and water. In the presence of gypsum, the desired setting time can be

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 achieved. Gypsum is added to the extent of 5% during the clinker grinding stage.
Gypsum is naturally available in abundance in Rajasthan, Gujarat and Tamilnadu.

3.) Granulated Blast Furnace Slag (GBFS) and Fly Ash

The other raw materials that are also used in the manufacture of cement are blast
furnace slag (a waste product obtained from iron-smelting furnaces) and fly ash
(leftover ash from a thermal power station). Limestone contains about 52% of
lime and about 80% of this lime is lost during ignition of the raw materials.
Similarly, Clay contributes about 57% silica of which about 25% is lost during
ignition. GBFS is obtained by granulation of slag obtained as a by-product during
the manufacture of steel. It is a complex calcium aluminium silicate and has latent
hydraulic properties. That is why it is used in the manufacture of Portland blast
furnace slag cement.

1.4 PROCESS

1.4.1 Stages of Cement Production

There are seven stages of cement production at a cement plant:

1. Procurement of raw materials

2. Raw Milling - preparation of raw materials for the Pyroprocessing system

3. Pyroprocessing - Pyroprocessing raw materials to form cement clinker

4. Cooling of cement clinker

5. Storage of cement clinker

6. Finish Milling

7. Packing and loading

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Figure 1.1: Cement manufacturing from the quarrying of limestone to the bagging of
cement

While adding fresh capacities, the cement manufacturers are very conscious of the
technology used. In cement production, raw materials preparation involves primary and
secondary crushing of the quarried material, drying the material (for use in the dry
process) or undertaking a further raw grinding through either wet or dry processes, and
blending the materials.

Clinker production is the most energy-intensive step, accounting for about 80% of the
energy used in cement production. Produced by burning a mixture of materials, mainly
limestone, silicon oxides, aluminium, and iron oxides, clinker is made by one of two
production processes: wet or dry; these terms refer to the grinding processes although
other configurations and mixed forms (semi-wet, semi-dry) exist for both types.

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In the dry process, the raw materials are ground, mixed, and fed into the kiln in their dry
state.

In the wet process, the crushed and proportioned materials are ground with water, mixed,
and fed into the kiln in the form of slurry.

The choice among different processes is dictated by the characteristics and availability of
raw materials. For example, a wet process may be necessary for raw materials with high
moisture content (greater than 15%) or for certain chalks and alloys that can best be
processed as a slurry. The dry process is the more modern and energy-efficient
configuration. In general, the dry process is much more energy efficient than the wet
process, and the semi-wet somewhat more energy efficient than the semi-dry process.
The semi-dry process has never played an important role in Indian cement production and
accounts for less than 0.2% of total production.

In 1960, around 94% of the cement plants in India used wet process kilns. These kilns
have been phased out over the past 46 years and at present, 96.3% of the kilns are dry
process, 3% are wet, and only 1% are semidry process. Dry process kilns are typically
larger, with capacities in India ranging from 300- 8,000 tons per day or tpd (average of
2,880 tpd). While capacities in semi-dry kilns do range from 600-1,200 tpd (average 521
tpd), capacities in wet process kilns range from 200-750 tpd (average 425 tpd).

Over the last decade, increased preference is being given to the energy efficient dry
process technology so as to obtain a cost advantage in a competitive market. Moreover,
since the initiation of the decontrol process, many manufactures have switched over from
the wet technology to the dry technology by making suitable modifications in their plants.
Due to new, even more efficient technologies, the wet process is expected to be
completely phased out in the near future. Due to the dominant use of carbon intensive
fuels such as coal in clinker making, the cement industry has been a major source of
carbon dioxide (CO2) emissions. Besides energy consumption, the clinker making
process also emits CO2 due to the calcining process.

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1.5 TYPES OF CEMENT

There are different varieties of cement based on different compositions according to

specific end uses, namely, Ordinary Portland Cement, Portland Pozzolana Cement, White
Cement, Portland Blast Furnace Slag Cement and Specialized Cement. The basic
difference lies in the percentage of clinker used.

1.) Ordinary Portland cement (OPC): OPC, popularly known as grey cement, has 95
per cent clinker and 5 per cent gypsum and other materials. It accounts for 70 per cent of
the total consumption.

2.) Portland Pozzolana Cement (PPC): PPC has 80 per cent clinker, 15 per cent
Pozzolana and 5 per cent gypsum and accounts for 18 per cent of the total cement
consumption. It is manufactured because it uses fly ash/burnt clay/coal waste as the main
ingredient.

3.) White Cement: White cement is basically OPC: Clinker using fuel oil (instead of
coal) with iron oxide content below 0.4 per cent to ensure whiteness. A special cooling
technique is used in its production. It is used to enhance aesthetic value in tiles and
flooring. White cement is much more expensive than grey cement.

4.) Portland Blast Furnace Slag Cement (PBFSC): PBFSC consists of 45 per cent
clinker, 50 per cent blast furnace slag and 5 per cent gypsum and accounts for 10 per cent
of the total cement consumed. It has a heat of hydration even lower than PPC and is
generally used in the construction of dams and similar massive constructions.

5.) Specialized Cement: Oil Well Cement is made from clinker with special additives to
prevent any porosity.

6.) Rapid Hardening Portland cement: Rapid Hardening Portland Cement is similar to
OPC, except that it is ground much finer, so that on casting, the compressible strength
increases rapidly.

7.) Water Proof Cement: Water Proof Cement is similar to OPC, with a small portion of
calcium stearate or non- saponifiable oil to impart waterproofing properties.

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In India, the different types of cement are manufactured using dry, semi-dry, and wet
processes. In the production of Clinker Cement, a lot of energy is required. It is produced
by using materials such as limestone, iron oxides, aluminium, and silicon oxides. Among
the different kinds of cement produced in India, Portland Pozzolana Cement, Ordinary
Portland Cement, and Portland Blast Furnace Slag Cement are the most important
because they account for around 99% of the total cement production in India.

The Portland variety of cement is the most common one among the types of cement in
India and is produced from gypsum and clinker. The Ordinary Portland cement and
Portland Blast Furnace Slag Cement are used mostly in the construction of airports and
bridges. The production of white cement in the country is very less for it is very
expensive in comparison to grey cement. In India, while cement is usually utilized for
decorative purposes, marble foundation work, and to fill up the gaps between tiles of
ceramic and marble.

The different types of cement in India have registered an increase in production in the
last few years. Efforts must be made by the cement industry in India and the government
of India to ensure that the cement industry continues innovation and research to come up
with more and more varieties in the near future.

Recognition and Awards

• Whitehopleman UK - International Cement Consultants have consistently maintained 4

star rating for Shree since 2000 (No one in the world has been assigned a 5 star rating!!)

• Excellence in Energy Management Award 2006 from Confederation of Indian Industry

for the second time

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• National Awards for Energy Conservation and Best Thermal and Electrical Energy
from Ministry of Power, Govt of India

• National Safety Awards by Ministry of Labour, Govt. of India

• ICWAI National award 2005 for excellence in cost management

• Golden Peacock Award-2006 &2008 in recognition of its excellent Environment

Management practices

1.6 EXPORTS

The export of Indian cement has increased over the years, giving a boost to the Indian
cement industry. The demand for cement in the foreign countries is a derived demand, for
it depends on industrial activity, real estate, and construction activity. The cement
industry in India has around 300 mini cement plants and 130 large cement plants. The
total production capacity of these plants is around
167.36 million tons. The India cement industry is technologically very advanced, as a
result of which the quality of Indian cement is now considered the second best in the
world. This has given a major boost to the Indian export of cement.
The production of cement in India is not only able to meet the domestic demand, but
large amounts are also exported. A fair amount of clinker and cement byproducts are also
exported by India. As the quality of Indian cement is very good, its demand in the
international market is always high.
In 2001-2002, 3.38 million tons of cement was exported from India. That figure stood at
3.47 million tons in 2002-03, and 3.36 million tons in 2003-04. In
2001-2002, 1.76 million tons of clinker was exported from India. In 2002- 2003 clinker
exports amounted to 3.45 million tons, and in 2003- 2004 the figure stood at 5.64 million
tons. This shows that the export of Indian cement has been increasing at a steady pace
over the years. Export of India cement has been mostly to the West Asian countries.

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The major companies exporting Indian cement are:

• Gujarat Ambuja
• Ultra Tech Cement
• Aditya Cement
Export of Indian cement has registered growth a fair amount of growth, giving a boost to
the Indian economy. That it continues to rise, more efforts must be made
by the cement industry in India and the government of India.

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 has 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.

1.7 POLICY INITIATIVES

FDI Policy: the cement sector has been gradually liberalized. 100 per cent FDI is now
permitted in the cement industry.

1.8 FUTURE OUTLOOK

Considering an expected production and consumption growth of 9 to 10 per cent, the

demand-supply position of the cement industry is expected to improve from
2008-09 onwards, resulting in an expected price stabilization. The cement industry is
poised to add 111 million tones of annual capacity by the end of
2009-10 (FY 10), riding on the back of an estimated 141 outstanding cement Projects.

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1.9 SIGNIFICANT CONSOLIDATIONS

As discussed earlier in this report, the cement industry is witnessing a number of Mergers
& Acquisitions (M&As). The extent of concentration in the industry has increased over
the years.

This concentration is mainly because of the focus of the larger and the more efficient
units to consolidate their operations by restructuring their business and taking over
relatively weaker units. The relatively smaller and weaker units are finding it difficult to
withstand the cyclical pressure of the cement industry.
Some of the key benefits accruing to the acquiring companies from these acquisition
deals include:

· Economies of scale resulting from the larger size of operations

· Savings in the time and cost required to set up a new unit

· Access to new markets

· Access to special facilities / features of the acquired company

· Benefits of tax shelter.

The relative market share of large players in the cement industry has changed
significantly over the years. Consolidation of capacities has seen UltraTech,
Grasim, India Cement and Gujarat Ambuja emerging as the leading players in India apart
from ACC, which has been the market leader during all the years excepting FY2001. All

22
the players have resorted to a combination of Greenfield capacities as well as takeover of
existing capacities for growth.
Some examples of the consolidation witnessed among domestic players in the recent past
include:

· Gujarat Ambuja taking a stake of 14 per cent in ACC

· Gujarat Ambuja taking over DLF Cements and Modi Cement.

· ACC taking over IDCOL

· India Cement taking over Raasi Cement and Sri Vishnu Cement

· Grasim's acquisition of the cement business of L&T

· Grasim taking over Indian Rayon's cement division.

· Grasim taking over Sri Digvijay Cements.

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1.10 Competitor & Environment Analysis

PORTER’S MODEL

Figure 1.3: Porter’s model

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2.1 SCL Manufacturing Units

Presently Shree Cements has three units. Two units are at Beawer (incorporated in 1979
and1997) and third unit is at Ras (Started in 2005). Fourth unit at Ras has been started in
March 2007 and another two units at Ras and Khushkhera near Alwar are also started to
enhance the capacity of the company to 10 mtpa from the present figure of 6 mtpa by the
year 2010. The proximity to Delhi, Jaipur and Haryana, which are the most lucrative
markets in the region, makes it a strategic location.

Figure 2.1: SCL Production vis-à-vis Market Share in Northern Region

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The growth of company’s market share is going hand in and with its production,
supporting its cyclical business model of produce more-sell more-reinvestment more.
Capacity enhancement at SCL has also been considerable from its 0.6 mtpa in 1985
growing 10 times to 6 mtpa presently and is projected to touch a figure of 10 mtpa by
2010
Figure 2.2: Per Annum Capacity Enhancement at SCL.

2.2 Business & Managerial Challenges for SCL

Cement market for SCL is highly competitive with major competitors having advantage
of brand equity, capacity and early movers. The major competitors are Binani, Birla (with
products like Birla Super and Birla Chetak), Grasim (with products like Vikram and Birla
Plus), Gujarat Ambuja, JK (with products like JK Nimbahera), Laxmi, Mangalam (with
products like Mangalam and Birla Uttam), ACC, DCM Shriram, L & T and Kamdhenu.
Each of these players has their dominance across whole Rajasthan in addition to their
respective regional dominance.

Another issue is that the product (cement) cannot be differentiated clearly on the basis of
quality and hence, cost plays one of the most important roles in this industry. If the

26
company can control cost of manufacturing & distribution, then only would profitability
of the company increase.
Logistics is the most important cost associated with cement industry. This is the single
most important reason for strong dominance of all cement companies in the regions
around their factory. But if this system can be improved upon, and costs can be managed,
then Shree Cements Ltd. can strengthen their hold in present states of distribution as well
as look forward to gaining foothold in newer and farther regions.

2.3 Market of SCL

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.

SCL with a market share of 16% has the second largest market presence in the northern
region, next only to the Gujarat Ambuja Cement and ACC combined.
SCL positioning within Rajasthan (in the north of the state) makes it the closest among
all Rajasthan manufacturers to the lucrative markets of Delhi, Haryana and some parts of
Punjab, giving it a significant edge in transport costs. The other cement units are located
further down, at distances ranging from 150- 200 kilometers.
Shree Cements is one of the largest cement companies in North region having existing
capacity of 5.5mn tonnes of cement per annum located in central Rajasthan. The
company primarily caters to Rajasthan, Punjab, Haryana, Delhi and Uttranchal in the
Northern region and Uttar Pradesh in Central region.

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Rajasthan accounts for approximately 30% of the company's sales while Delhi and
Haryana together account for approximately 40% of sales.

2.4 SCL’s Brands & Products

Shree manufactures:

• Ordinary Portland cement (OPC)

• Red Oxide Cement (ROC) Its output is marketed under the ‘Shree Ultra Ordinary
Portland Cement’ and ‘Shree Ultra Red

Oxide Cement’ brand names. The product today constitutes almost 37% of SCL’s sales.
Under its premium products category, SCL has launched ‘Bangur Cement’ Dec. 2005
and a new brand ‘Tuff Cemento 3556’ has been introduced in the market in April 2007.
The company positioned its brands around longer life (durability), emphasizing product
longevity.

2.5 Strengths of SCL

1.) Low Cost Producer: SCL is one of the lowest cost producers of cement in
India. The prime reasons behind this are captive power plants, use of pet coke in
both captive power plant and kiln and proximity to the markets.

2.) Limestone Reserve: SCL has a total of 700 mn tones of limestone reserve which
would be sufficient to meet its requirements for the next 40 years. Shree
Cement's third unit is located at the pithead of limestone reserve unlike the other
two units in Beawar, Rajasthan. Unit IV, which is expected to be commissioned in
FY08, would also be located at the pithead of company's limestone reserve. As
the new plants are located at the pithead of limestone reserve, the raw material
cost per ton of cement is expected to go down as the company would be saving in
cost of transportation.

28
3.) Captive Power Plants: During FY05, the company sourced 99% of power
requirement from its captive power plant. The company has existing power plant
capacity of 42 MW. The company is installing additional power plant of 18 MW
capacities, which would supply power to its new cement units, thereby ensuring
continuation of self sufficiency in terms of power requirement. Shree Cement's
power usages per ton of cement at 75 Kwh is amongst the lowest in the industry.
The company uses low cost pet coke in both its power plants and kiln. Pet coke is
not only cheaper compared to the imported coke but also has high calorific values
thereby reducing the overall cost.

4.) Strong sales network of 28 sales offices, 1200 dealers and 4000 retailers.

5.) Progressive Management: Shree Cement supplemented its attractively low

capital investment per tonne with one of the lowest manufacturing costs in the
Indian cement industry. The path of sustainable growth has been made possible
because of management strategy of taking triple bottom-line approach of
Economic, Environmental and Social performance listed below:

Figure 2.3: Progressive Management

29
6.) Mining: Limestone being the predominant raw material, Shree Cement plants
are situated near limestone quarry fields. To minimize the transportation cost,
Shree Cements has leased two mines one at Beawer and other at Ras with
reserves that will last for a long time. The Ras mines give a limestone of very
good quality which is easier to process.

Figure 2.4: SCL Captive Power Generation

30
2.6 SCL’s Manpower profile

 Well experienced and skilled manpower resources capable of handling both

project implementation and operations.

 The skill enhancement is a regular exercise under a well defined training manual.

 Company imparts more than 20,000 hours of in-house training to its employees
every year

Figure 2.5: Manpower profile at SCL

31
2.7 Key Operational Highlights

 The cost of production of the Company is one of the lowest in India

 Operating profit margin is highest in World Cement Industry

 100% self sufficiency in meeting power requirement

 100% self dependent on limestone sourcing

 Consistent dividend paying company (2005-06: 50%)

 Recognized as one of the most Energy Efficient units in India

 Fastest growing cement company in India (capacity more than trebling in 3 years
from 26 LTPA in 2004-05 to 95 LTPA in 2008-09)

 Strong brand image – Bangur Cement, Shree Ultra Red Oxide Cement and Shree
Ultra Ordinary Portland Cement have high consumer recall.

32
Information Technology at SCL

SCL has embraced Information Technology in a big manner and made investments to
establish strong IT infrastructure:

• IT Policy & Quality Standards: SCL has clearly defined IT policy. Backup and
Disaster Recovery Policy, SCL Internet/Network Access Policy and Business
Continuity Plans have been endorsed and religiously implemented.

• ‘SUMriddhi’ - Shree Enterprise Resource Planning: The Shree ERP programme,

christened ‘SUMriddhi’, was developed deploying Oracle 9i RDBMS and
Developer 2000 platform. A comprehensive ERP program was designed to
integrate all functional modules, namely Financial Accounting & Costing (FA),
Material Management (MM), Personnel and Payroll (PP), Laboratory and Quality
Control, Integrated Management System (IMS) and Raw Material Procurement
(RMP) with the objective to make operations online. The company expects to
implement ERP ‘live’ across the organization in 2004-05.

• Online operations of Sales and Distribution: Company successfully

implemented the computerization of its sales and distribution functions by
integrating all branches/dealers through a secured connectivity with the plant for
online order processing. In the second phase, necessary enhancements will make
the system work in a centralized manner using dedicated and secure Virtual
Private Network (VPN) across its branch/dealer network.

• SCL’s IT Infrastructure: The Company has a scalable, state-of-the-art IT network

infrastructure, with optic fibre cable-based gigabit backbone, high-end layer 3
switches, Cisco routers and IBM corporate-computing servers. Shree has a secure
network across its corporate and site locations with e-trust firewall supplemented

33
 with intrusion detection system and Active Virus Defense Solution from Network
Associates. The organization is provided with the latest computing tools in
hardware and software.

• SCL’s corporate website: The Company launched its content-exhaustive

corporate website shreecement.com on 1 August 2003. The portal is dynamic,
informative and user-friendly with a menu-driven interface. The website contains
the latest information about the company with news flashes and a photo gallery.

The website is e-commerce enabled, which provides access to customers on their latest
account statement and vendors/ suppliers on order positions for the eprocurement
program.

• E-Procurement: Shree implemented an e-procurement programme to facilitate

purchases through the reverse auction process to maximize price benefits and
transparency.

• Paperless office: Shree is moving towards the ultimate goal of achieving a

paperless office environment through a widespread use of e-mails and instant
messaging for daily communication across all its offices. A program was
undertaken for storing and cataloguing the huge archive of blueprints of technical
drawings in a digitized form for instant accessibility.

• Raw material procurement: The entire raw material procurement operation was
integrated with ‘SUMriddhi’ - Shree ERP, to increase efficiency and control.

• Training: Shree is committed to enhance the IT skills of not only employees

across all functions but their family members as well. As a result, training is an
ongoing process and more than 200 personnel were imparted training across
departments.

34
• Online Knowledge management: Shree has launched a platform for sharing
knowledge across the enterprise. A knowledge management tool was developed
and implemented through which people across all levels can contribute and share
achievements, domain expertise, social and cultural ideas. This also provides a
‘public folder’ for up-to-date information on the cement industry and the
company.

• Network Security: SCL network is protected by the high end e-Trust Firewall
from Computer Associates and Network Associates Intrusion Detection System
(IDS). SCL has implemented Network Associates Active Virus Defence for virus
protection and SPAM control. All network resources are protected by adopting
strong password policies. SCL has enforced three-layer security for all data and
information systems.

Bangur Cement – SCL’s Premium Brand

Bangur cement started with a vision to be the most effective and efficient cement brand
of the country. As in Bangur cement, SCL aimed at providing the best quality cement that
ensures customer satisfaction. The Bangur cement is advertised with a tagline saying
“The best, not inexpensive”.
To serve the fast growing National Capital Region (NCR) with immediate and prompt
services, Bangur cement is establishing a grinding capacity at Khuskhera in Alwar
District of Rajasthan, which is just 80 Kms away from the capital.
Excelling in the quality, price, availability and packaging of the product, SCL aspires to
be the first choice of the consumers. The Bangur cement plant is one of the most modern
and sophisticated plants in the India equipped with state-of the- art German Technology.

Following factors makes Bangur cement, the SCL’s premium brand:

 Best Quality of Lime Stone: The Ras belt is among the finest quality limestone
deposits in India. Importantly, it is a single source of limestone belt where all

35
 necessary ingredients of cement are available in limestone and there is no
dependency on outside sources, thus enabling consistency in quality.

 Better Quality Control, Clinkerisation and superior cement grinding makes the
quality of the brand one of the best in the industry.

 State-of-the-art technology: The plant has been set up in the technical

collaboration with internationally acclaimed German cement manufacturer.
In line with its marketing strategy, Bangur cement realized sales predominantly in
the trade segment. The brand contribution to more than 40% of the trade sale of
the company, registering 14.20 Lac MT sales out of the total of 35.92 Lac MT .In
fact , trade sales accounted for 95% of total sales of BANGUR CEMENT while
non trade sales was just 5%. BANGUR CEMENT registered its 55% sales of its
total sales in its home market, Rajasthan. By selling within a smaller radius, the
company was able to notch higher net realization because of lower logistics.

Productivity

Shree Cement supplemented its attractively low capital investment per tonne with
one of the lowest manufacturing costs in the Indian cement industry.

Timely execution of Unit-III along with better price realization and cost optimization
measures made the year a hallmark for the Company:-

36
 The turnover of the Company has more than doubled during the year.

 The operating profit margin of the Company at 44.84% is highest in the Indian
cement industry.

 The proportion of blended cement in the total production has increased to 76% in
the current year against 54% in the previous year. Company started use of wet fly
ash for producing blended cement which is economical and environment friendly.

 The capacity utilization level of the Company further improved during the year
from 114% to 116% with Unit-III recording 99% in its very first full year of
operation. This compares well with the all India average of 94%.

 Continued thrust on improving energy consumption levels has brought down

power and fuel consumption as under:

37
Although Power consumption for the year indicates marginal increase during the year,
the unit-wise consumption has gone down from last year. The Reduction in energy
consumption with increasing production base has significantly contributed to cost
efficiency of the Company.

 Dynamic and efficient logistic management practices have enabled Company to

contain increase in freight cost in spite of rising diesel prices and loading
restrictions on trucks. Company has made optimal use of its in-house railway
sidings facility with appropriate route plan to limit freight cost.

The Company's marketing strategy of maintaining multiple brands competing with each
other with a view to garner increased market share has yield good returns. As a result,

 Company has retained market leadership status in Rajasthan and Delhi.

 “Jung Rodhak” brand has further strengthened its presence in its segment in the
North India market.

 “Bangur Cement” launched last year in the premium quality segment, has been
well received in the market and has been improving its market share. Its
marketing strategy of appointment of Business associates and Business partners

38
 has enabled the Company to keep its debtors levels at zero and minimizing the
Working Capital requirement.

 Company has introduced another premium quality brand “Tuff Cemento 3556”.
The new brand has started attracting customer’s attention and is getting good
response.

 The proportion of trade sale to total sale increased during the year from 66% to
74% showing higher customer recall and satisfaction.

 The Company continued with its highest credit rating of PR1+ for its short-term
debt and AA for its long-term debt enabling containment of its cost of funds
despite large borrowing requirements for its capital expenditure programme.

 The interest cost has been kept at a low level in the rising interest rate
environment through optimal utilization of funds and judicious mix of rupee and
fully hedged foreign currency borrowings.

 Timely execution of projects is a hallmark of the Company. The 1.5 MTPA

capacity expansions with captive power plant of 18 x 3 MW completed in
Feb 08 has been achieved well within the targets both time and budget.

 During the year Company has undertaken implementation of an “Enterprise

Resource Planning” (ERP) Project with oracle E-Business suite to manage its
expanding business operations. ERP Project shall help it in improving its business
matrices by process optimization, improving logistics and integration across
disciplines. The project is expected to be operational in FY 2008-09.

Table 2.3: SCL Key Figures

39
2.8 SCL vis-à-vis Competitors

SCL has been omnipresent in the performance with various achievements within a short
period of time. Following figures suggests that it has been doing the best job among its
peers in terms of high capacity utilization, low power consumption, low power generation
cost, and low fuel consumption ratio.

Table 2.4: SCL figures vis-à-vis competitors

It has also been encountering the lowest Variable Cost in its peer group because of its
constant efforts in saving cost of power and fuel consumption which is not only the

40
lowest but is approx. 75% of the average of other players. Freight and selling expenses of
for SCL is also the lowest amongst all.

Table 2.5: SCL’s Variable Cost Comparison with others

SCL’s ability to produce cement with lowest power consumption and other low costs of
production and raw material procurement has resulted into the top EBITDA Margin
figures for SCL amongst all its competitors.

Figure 2.6: Power Cost Comparison

Figure 2.7: EBITDA Margin Comparison

41
2.9 Information Technology at SCL

SCL has embraced Information Technology in a big manner and made investments to
establish strong IT infrastructure:

• IT Policy & Quality Standards: SCL has clearly defined IT policy. Backup and
Disaster Recovery Policy, SCL Internet/Network Access Policy and Business
Continuity Plans have been endorsed and religiously implemented.

• ‘SUMriddhi’ - Shree Enterprise Resource Planning: The Shree ERP programme,

christened ‘SUMriddhi’, was developed deploying Oracle 9i RDBMS and
Developer 2000 platform. A comprehensive ERP program was designed to
integrate all functional modules, namely Financial Accounting & Costing (FA),
Material Management (MM), Personnel and Payroll (PP), Laboratory and Quality
Control, Integrated Management System (IMS) and Raw Material Procurement
(RMP) with the objective to make operations online. The company expects to
implement ERP ‘live’ across the organization in 2004-05.

• Online operations of Sales and Distribution: Company successfully

implemented the computerization of its sales and distribution functions by

42
 integrating all branches/dealers through a secured connectivity with the plant for
online order processing. In the second phase, necessary enhancements will make
the system work in a centralized manner using dedicated and secure Virtual
Private Network (VPN) across its branch/dealer network.

• SCL’s IT Infrastructure: The Company has a scalable, state-of-the-art IT

network infrastructure, with optic fibre cable-based gigabit backbone, high-end
layer 3 switches, Cisco routers and IBM corporate-computing servers. Shree has a
secure network across its corporate and site locations with e-trust firewall
supplemented with intrusion detection system and Active Virus Defense Solution
from Network Associates. The organization is provided with the latest computing
tools in hardware and software.

• SCL’s corporate website: The Company launched its content-exhaustive

corporate website shreecement.com on 1 August 2003. The portal is dynamic,
informative and user-friendly with a menu-driven interface. The website contains
the latest information about the company with news flashes and a photo gallery.

The website is e-commerce enabled, which provides access to customers on their latest
account statement and vendors/ suppliers on order positions for the eprocurement
program.

• E-Procurement: Shree implemented an e-procurement programme to facilitate

purchases through the reverse auction process to maximize price benefits and
transparency.

\• Paperless office: Shree is moving towards the ultimate goal of achieving a

paperless office environment through a widespread use of e-mails and instant
messaging for daily communication across all its offices. A program was
undertaken for storing and cataloguing the huge archive of blueprints of technical
drawings in a digitized form for instant accessibility.

43
• Raw material procurement: The entire raw material procurement operation was
integrated with ‘SUMriddhi’ - Shree ERP, to increase efficiency and control.

• Training: Shree is committed to enhance the IT skills of not only employees

across all functions but their family members as well. As a result, training is an
ongoing process and more than 200 personnel were imparted training across
departments.

• Online Knowledge management: Shree has launched a platform for sharing

knowledge across the enterprise. A knowledge management tool was developed
and implemented through which people across all levels can contribute and share
achievements, domain expertise, social and cultural ideas. This also provides a
‘public folder’ for up-to-date information on the cement industry and the
company.

• Network Security: SCL network is protected by the high end e-Trust Firewall
from Computer Associates and Network Associates Intrusion Detection System
(IDS). SCL has implemented Network Associates Active Virus Defence for virus
protection and SPAM control. All network resources are protected by adopting
strong password policies. SCL has enforced three-layer security for all data and
information systems.

2.15 Bangur Cement – SCL’s Premium Brand

Bangur cement started with a vision to be the most effective and efficient cement brand
of the country. As in Bangur cement, SCL aimed at providing the best quality cement that
ensures customer satisfaction. The Bangur cement is advertised with a tagline saying
“The best, not inexpensive”.

44
 CHAPTER:-3

RESEARCH METHODOLOGY
Research definition:

Research is a process of systematic and in – depth study or search for any particular
topic, subject by collection, compilation, presentation and interpretation of relevant
details or data. Research refers to a search of knowledge. It is a scientific and
systematic search for pertinent information on a specific topic.

• It is an art of scientific investigation.

• Movement from known to unknown.

• Voyage of discovery.

• Original contribution to the existing socks of knowledge making for its advancement.

3 MARKETING RESEARCH

Marketing research in the systematic gathering, recording and analyzing of data about
problems connected with the market place i.e. H.P’s in order to find justified solutions for
the problem.

IMPORTANCE

 Consumer oriented marketing.

 Effective managerial decision.

 Identification of opportunities.

 Reduces risk.

 Stimulates sales.

 Assessment of real image of company.

45
  Integrating the company and consumer interest.

3.1 CLASSIFICATION OF MARKETING REASEARCH

1. Research on consumer

 Studying consumer tastes, reactions and brand preference.

 Customer satisfaction study.

2. Research on market

 Study on market size / potential / market growth.

 Study on market segment.

 Detailed market surveys.

3. Research on distribution:

 Measuring dealer reaction to the company and its products and services.

 Distribution cost Analysis.

4. Research on advertising effectiveness.

 Studies on advertising effectiveness.

 Studies on media.

 Assessing and effectiveness and ad impact.

 Studies on sales promotion effectiveness.

46
PROCESS OF MARKETING RESEARCH

47
The main aim of the project was to find out the market share of SCL and it’s customers
with respect to Jaipur (Rajasthan). The opinions of the customers were taken by visiting
various places and information was collected from the customers.

DATA COLLECTION:

Data collection is the heart of all marketing research. It is an elaborate process through
which the researcher makes a planned search for all relevant data and gathers the entire
data required for the assignment.

Primary data source:

1. Observation

2. Interview

3. Questionnaire: The project was started from the questionnaire. The questions are
asked to respondents about their experiences towards SCL’S
Brands and other competitors. The survey was conducted to know
the market potential and market share for two-wheeler segment.
Questionnaire contains both open ended and close-ended question.

Secondary data source:

1. Internet: For this purpose different web sites have been used some of those are: -

• www.google.com

• www.shreecement.com

2. Newspapers

3. Reference book

48
Sampling Method: -

1. Probability / random sampling method

2. Non-probability sampling method

For research purpose of project researcher selected the probability sampling. The
population for our project was very large; it was not possible to meet every one so
researcher select simple random sampling. Researcher had covered the Jaipur city.

Sample size:
As considering the coverage of researcher takes the sample size as about 150 dealers and
divided this sample in equal strength to give same weight age for all area

Statistical technique used:

Here I have used Bar chart & pie chart

Scaling technique used:

For this purpose I have used different response of the customers like – excellent,
satisfied, Not Satisfied. Other response is Good, Poor, Can’t say.

49
LIMITATIONS

AREAS COVERED

Any study that is conducted has a scope. The scope here signifies the geographical limits
within which the study will be carried discrepancies in the study due to a large number of
extraneous variables in the area. The market survey was conducted on the dealers, sub-
dealers of cement brands to measure the most potential brand in Jaipur territory.

The study was under SCL’S (SHREE CEMENT LIMITED) BRANDS Jaipur.

The geographical scope of my study was limited to the area of Jaipur territory where by
different area were covered.

• Mansarovar

• Jagatpura

• Pratap Nagar

• Prithviraj Nagar

• C-scheme

• Vidhyadhar Nagar

• Sirsi road

50
 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

Q.1 Which of the following offer given by the company satisfy you the most?

51
Notes:

1. The Company has adopted Indian Accounting Standards (“Ind AS”) from 1 April, 2016.
Accordingly, the figures for the year 2015-16 onwards are in accordance with Ind AS.

52
 2. Figures for the Financial Year 2015-16 have been annualised for calculating Return on
Equity and Return on Average Capital Employed.

3.Operating income during the year rose 27.7% on a year-on-year (YoY) basis.

4.Depreciation charges increased by 63.6% and finance costs increased by 83.2%

respectively.

5.Other income declined by 35.8% YoY.

6.Net profit for the year declined by 26.7% YoY.

7.Net profit margins during the year declined from 13.5% in FY18 to 7.9% in FY19.

53
SWOT ANALYSIS

54
OPPORTUNITIES

55
DEALERS / SUBDEALERS REPORT

56
57
58
59
60
v

61
 CHAPTER :-5

SUMMARY OF FINDINGS

AWARENESS

• Ambuja, Ultra-Tech, Binani, Bangur & Shree Ultra are highly aware brand in
Jaipur city.

• Tuff Cemento, J.K. Laxmi, Birla Uttam Birla Chetak, J.K. Super & ACC are also
reasonable awared.

AWARENESS OF COMPANY WITH BRANDS

• Ambuja, Ultra-Tech, Binani, Bangur & Shree Ultra & Tuff Cemento are highly
aware of brand with company in Jaipur city.

• J.K. Laxmi, Birla Uttam Birla Chetak, J.K. Super & ACC are also reasonable
awared.

DEALING

• Maximum dealers are dealing with Ambuja, Ultra-Tech, and Binani & Bangur.

• Mainly dealers are dealing with multiple brands.

• Retailers having good sale are authorized dealer of a company.

QUALITY

• Ambuja, Ultra-Tech & Binani are considered to be best quality product.

• Shree Ultra, Bangur, Tuff Cemento, J.K. Laxmi, Birla Uttam Birla Chetak, J.K.
Super & ACC are also among good perception about quality.

62
PRICE

• Ambuja, Ultra-Tech & Binani are considered to be best price product in the
market (higher price than other product).

• Shree Ultra, Bangur, Tuff Cemento, J.K. Laxmi, Birla Uttam Birla chetak, J.K.
Super & ACC are also normal price in the market.

63
EXECUTIVE SUMMARY

Cement is a key infrastructure industry. It has been decontrolled from price and
distribution on 1st March, 1989 and delicensed on 25thJuly, 1991 Moreover it is the
material which plays an important role in building not only the colossal structures but
also our dreams in the form of our houses, keeping us protected against the changing
climate. Our country takes the pride of being the second largest manufacturer of cement
in the world preceded by only China. We have constantly been exercising one of the best
practices of cement production, giving rise to productivity, quality and efficiency.
The cement industry in India is experiencing a boom on account of the overall growth of
the Indian economy. The demand for cement, being a derived demand, depends primarily
on the industrial activity, real estate business, construction activity, and investment in the
infrastructure sector. India is experiencing growth on all these fronts and hence the
cement market is flourishing like never before.
Indian cement industry is globally competitive because the industry has witnessed
healthy trends such as cost control and continuous technology up gradation. It is believed
that cement demand in India is expected to grow at 10% annually in the medium term
buoyed by housing, infrastructure and corporate capital expenditures.

As mentioned above, the Indian cement industry is the second largest producer of quality
cement, which meets global standards. The cement industry comprises more than 50
cement companies with 130 large cement plants with an installed capacity of 156.26
million tonnes and more than 300 mini cement plants with an estimated capacity of 11.10
million tonnes making a total installed capacity of
167.36 million Tonnes.

Continuous technological upgradation and assimilation of latest technology has been

going on in the cement industry. Indian cement industry is modern and uses the latest
technology. India is also producing different varieties of cement like Ordinary Portland

64
cement (OPC), Portland Pozzolana cement (PPC), Portland Blast furnace Slag Cement
(PBFS), Oil Well Cement, Sulphate Resisting Portland Cement, White Cement, etc.
Future growth of the industry is belief to be driven by expected GDP growth of more than
8 percent, growth of the housing sector and the development of roads, ports, airports and
other infrastructure.

This project is pertaining to explore the market perception of Shree cement’s brand vis-à-
vis competitors by taking care of all the components of marketing mix. Keeping main
objective of the study in mind the survey has been done in Jaipur city & local area. The
methodology of the study contains interacting with distributors and dealers, questioning
them around the various attributes of the market to collect the facts about the market
scenario of the region and eventually exploring their role in marketing of company’s
brand for past two months, I have been working as a summer trainee on this project
assigned to me. The idea was to study the importance and role of various factors of the
marketing mix in the cement industry in terms of Quality (Product), Price, Promotional
activities, Services to the dealer and Dealers profitability.

The report also throws light on dealer’s opinions and preferences when it comes to
discounts and benefits offered to them and promotional support provided by company to
help dealers. This information is vital to the company in forming its strategy and schemes
to increase its market share.

To start with an attempt was made to understand and diagnose the prevailing situation of
Shree’s cement. Carrying out the industry analysis, competitor’s analysis, channel
analysis and SWOT analysis did it. To get the real market scenario, a survey of dealers
was conducted to get their perception about the prevailing situation and to find their
expectations.

According to dealer’s feedback Quality, Availability and Profit margin are the factors on
which Bangur is rated high.

65
A positive relationship was seen between Brand image and Quality of the cement. Along
with this there was no significant relationship between the Profit margin and the sales.
Survey results confirm that SCL has been able to make a mark in market and perceived
to have good quality and also there is a great demand of cement in market. But survey
results also shows that despite of above mentioned positive factors it has not been able to
make a breakthrough in building its brand name the reason come out to be its low brand
awareness (lack of dealer motivation/ meetings/ advertising) and cut-throat in-house
brand competition.

To increase the brand awareness aggressive promotion need to be carried out ensuring its
effectiveness in making a mark, also as survey results confirm that it’s the dealer/ mason/
contractor who is the ultimate decision maker in choosing a brand so efforts need to be
made to build long term relationship with all these people. Meetings, gifts, and kit
distribution are the best tool to ensure masons understanding and satisfaction. As dealer
play a prominent role in sale of a brand every possible effort (like training/ plant visit/
additional margin/ sufficient POP material distribution/ grace period of three days for
payment) need to be made a strong dealer network.

66
CONCLUSIONS
• Quality and Brand image of the cement brands are having a significant
relationship with one another. This is an important factor because good quality
helps in building the loyal customers due to which demand of that brand increases
and dealers have to go with the brand whose demand is more.

• There is no significant relationship between the profit margin and sales. As

reputed brands are giving high sales even they are providing fewer profit margins.
In other terms, in Volume based market dealers go with the brand which has high
demand.

• They say that if the sales are high then automatically we will be able to make a
profit out of it and are able to earn the monetary benefits which companies gives
on achieving the target sales.

67
RECOMMENDATION
• To build the strong brand image, SCL has to adopt aggressive marketing
strategies. You should have a proper control on all the factors of marketing mix.
Even a single factor missed out will give your competitors an edge upon you.
Some of the recommendations I want to give to improve the present positioning
of the brand:

• First of all, SCL has to show its presence in the market not in the terms of dealers
but should also reach to the customers via different means. Mason meets and
Dealer meets should be organized in every six months (stress should be laid in
rural areas, where brand visibility is very low). Along with mason and dealer
meets, company can also go for customer meets, telling about the quality of the
product and explaining them why they should choose SCL’S Brands.
Advertisement is another medium to reach to the customers; effective medium
should be adopted for the same.

• Company can adopt the strategy of making exclusive dealers, by providing them
extra benefits. This will help them to reduce competition. As in the case of multi
brand dealers, dealer tend to sale only those brand which gives high profit margin.

• There should be control on the price variation. Due to this, image of being a
premium brand is diluted and we no longer are considered as premium brand.

• One of the main reasons of price variation is the secondary freight benefit being
provided to the dealers. Companies carry the “Trolla Movement” to give benefit
to their dealers. Also, other two brands of Shree Cement Limited give the same
benefit. Therefore, Bangur has also started giving the same benefit to counter the
competitors move.

68
• It is good to give more benefits to the dealers but it should be seen equally from
both sides. Company carries the “Trolla Movement” to give benefit to the dealers,
but dealer do not look it in this way. They think they are getting more profit
margin, due to which if they are getting sec. freight benefit as Rs 3 to Rs 4 then
they use it to reduce the price and sell the brand in lesser price and gaining Rs 1 or
Rs 2 out of it. Their main aim is to achieve high sales and get annual benefit.

• I strongly support this type of benefits should not be there which adversely affects
the brand image. Instead we can give other benefits to the dealers may be in form
of Gold schemes or more margin in achieving target sales.

• Another threat is from in-house competition. Company management should take

adequate steps to reduce this competition and should aim to build the brand
image, rather than to have high collective sales.

69
REFERENCES

BOOKS:

KOTHARI C.R.: Research methodology management, 3rd Edition

KOTLER PHILIP: Marketing management” 12th edition, 2007

S.P.GUPTA: - Statistical Methods “Thirteen Revised Edition, 2001

MAGZINES:

INDIA TODAY

BUSINESS WORLD

Shree Cement "Financial Reports": www.shreecement.in (Retrieved 19 March 2015).

"Shree Cement's Hari Mohan Bangur: On solid ground | Forbes India"(Retrieved 16

December 2017).

Business Today (28 September 2014): "Concrete Growth”, Business Today (Sept 2014).

Shree Cement "Locations": www.shreecement.com.

• www.ibef.org
• www.shreecementltd.com
• www.marketresearch.com
• www.indiancementindustry.com
• www.indianinfoline.com
• www.busineessconnect.com

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QUESTIONNAIRE

Q.1 Name the current cement brands you are aware of?

(A) Ambuja (B) Ultra-tech (C) Binani

(D) Bangur (E) Shree Ultra (F) Tuff Cemento

(G) J.K.Laxmi (H) ACC (I) Birla Uttam

Q.2 Name of the company of the brand you are aware of?

(A) Ambuja (Ambuja) (B) Aditya Birla Group (Ultra-tech)

(C) Barj Binani Group (Binani) (D) Shree Cement Ltd (Bangur)

(E) Shree Cement Ltd (Shree Ultra) (F) Shree Cement Ltd (Tuff Cemento)

(G) J.K. Group (J.K.Laxmi) (H) ACC (ACC)

(I) B.K. Birla Group (Birla Uttam) (J) M.P. Birla Group (Birla Chetak)

(K) J.K. Group (J.K. Super)

Q.3 Name the brands you deal with?

(A) Ambuja (B) Ultra-tech (C) Binani

(D) Bangur (E) Shree Ultra (F) Tuff Cemento

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(G) J.K.Laxmi (H) ACC (I) Birla Uttam

Q.4 You are authorized dealer of?

(A) Ambuja (B) Ultra-tech (C) Binani

(D) Bangur (E) Shree Ultra (F) Tuff Cemento

(G) J.K.Laxmi (H) ACC (I) Birla Uttam

(J) Birla Chetak (K) J.K.Super

Q.5 Rank the following brands in quality terms:

Two category ‘A’ & ‘B’

(A) Ambuja (B) Ultra-tech (C) Binani

(D) Bangur (E) Shree Ultra (F) Tuff Cemento

(G) J.K.Laxmi (H) ACC (I) Birla Uttam

(J) Birla Chetak (K) J.K.Super

Q.6 Have you seen the TV advertisement of cement brand’s?

(A) Ambuja (B) Ultra-tech (C) Binani

(D) Bangur (E) Shree Ultra (F) Tuff Cemento

(G) J.K.Laxmi (H) ACC (I) Birla Uttam

(J) Birla Chetak (K) J.K.Super

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Q.7 Rank the following brands in price terms:

Two Category ‘A’ & ‘B’

(A) Ambuja (B) Ultra-tech (C) Binani

(D) Bangur (E) Shree Ultra (F) Tuff Cemento

(G) J.K.Laxmi (H) ACC (I) Birla Uttam

(J) Birla Chetak (K) J.K.Super

Q.8 How many Sites are there in India of Shree Cement?

(A) 5 (B) 8 (C) 10 (D) 15

Q.9 Which is the biggest plant in Rajasthan ?

(A) Beawer (B) RAS (C) Jaipur (D) Ajmer

Q.10 Where is the Head Office of Shree Cement located ?

(A) Jaipur (B) Ajmer (C) Jobner (D)Aurangabad

Q.11 Where is the Management Branch of the Shree Cement Located?

(A) Ajmer (B) Ajmer (C) RAS (D) Jobner

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Q.12 Where is the New Plant proposed in Rajasthan?

(A) Ajmer (B) Jobner (C) Nawalgrah (D) Kota

Q.13 What is the Total Generation Capacity plant?

(A)510MW (B) 607MW (C) 670MW (D) 790MW

Q.14 Who is the Chairman of Shree Cement?

(A) Sanjay Mehta (B) B.G.Banguar (C) Shree Chand (D)N.K.Singh

Q.15 When did Shree Cement Established?

(A)1980 (B) 1982 (C) 1979 (D)1990

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