A Project Report

On

“Opportunity of converting multibrand cement retailers into

authorized retailers for Ultratech cement”

At/For

“ULTRATECH CEMENT”

By

“Rahul Tripathi”

Under the guidance of

“Prof. Pavan Patil”

Submitted to

“University of Pune”
In partial fulfillment of the requirement for the award of the degree of MBA

Through
Institute Of Business Management (I.B.M.R) Chinchwad Pune 411019
 Acknowledgement

Success is the manifestation of diligence, perseverance, inspiration, motivation,

dedication. Considerable thought, effort and labor have gone into shaping this project and
making it a success. Obligations thus incurred in completing the work have been many. It is
therefore almost impossible to express adequately the debts owed to many persons who have
been instrumental in imparting the work a successful status. It is however matter of great
pleasure to express our gratitude and appreciation to those who have been contributing to
bring about this project into reality.

I would like to take this opportunity to thank Mr. R. Baliiya, AVP, Grasim marketing
division, Indore for granting us the privilege to undertake our summer project with them,
without which our project would not have turned into reality. This project has been a great
learning experience for us which will undoubtedly help in our career as corporate
professional.
I ascribe our success to our guides Mr. P. Bhattacharya, Territory sales manager - and
Mr. Vishal Joshi and Mr. Amit , Project Anchor whose endeavor guidance, foresight and
dynamism contributed in a big way in completion of this summer project within the stipulated
time. His support and his knowledgeable insights on various important issues relating to this
project helped us to understand the topics in simpler but in detail.
I am also deeply grateful to Mr. Taha Ansari, whose ever ready cooperation; support
and guidance were of great help during the project ensuring its successful completion.
Last, but not the least, my acknowledgement would be incomplete if I do not mention
the tremendous support and inputs provided to me by Prof. Pavan Patil , Audyogik Shikshan
Mandal’s Institute of Business Management and Research, Pune.

Submitted with regards by:

Mr. Rahul Tripathi (MBA)
 Executive summary

The main objective of the project was to find out the opportunity of converting multibrand
cement retailers into authorized retailers for Ultratech cement.
The research was undertaken in the Indore Marketing depot of Ultratech cement during the
period to May-June. The duration of the research was two months.
The research was conducted to find out the probability of increasing the number of authorized
retailers for Ultratech cement as the company was required to increase its market share and
to ensure the availability of its product at every retail counter and at anytime in the market.
Also it intended to make a good bondage with the retailers out there in the market.

The main reason of making the retailers authorized was to make the retailers sell more of
Ultratech cement as compared to other brands, to give them certain sales target for every
month and for this reason, certain reward schemes were also introduced to them on the
condition that they become authorized.
The research started with first of all knowing about the company, the brand and the product.
It also included studying the types of products the company manufactured, the way the
cement is used, the competitive strategy of the company, the current market scenario of the
cement market and the majors market players.

Then a brief theoretical study of the market of Indore was carried out in order to plan a
strategy to actually go and visit the retailers. A proper questionnaire was prepared
accordingly, keeping in mind the objective of the project and the purposes to be served by the
project. A list of the retailers present in the market was generated by the company from its
dealers and other sources and was put into the list of routes where they were actually present.
There were a total of more than 200 retailers of cement in the Indore market. The market was
divided into five routes on the basis of the road routes where they were present.

The visits were made accordingly, either by directly approaching or by taking a prior
appointment with the retailer. Information was generated from them, regarding their
establishment, their sales, their storage capacity and the kind of vehicle they used for
transportation to the site of construction. Then the scheme was introduced to them and their
opinion was noted. Every day the data generated was typed in the excel sheet and was
submitted to the company.
At the end of the project, the data collected was analysed and calculations were carried out
accordingly. The project was successful in finding the opportunity of converting multibrand
cement retailers into authorised retailers for Ultratech cement.
 List of Tables

Sr. Name of the table

no
1 A Table showing the Percentage of duration of establishment of retailers

2 A Table showing the Percentage of sales of various brands of cement

3 A Table showing the Percentage of cement purchased at a time.

4 A Table showing the Percentage of storage capacity of retailer

5 A Table showing the Percentage of frequency of purchasing cement

6 A Table showing the Percentage of average monthly sale

7 A Table showing the Percentage of kind of transport vehicle possessed

by retailers.
8 A Table showing the Percentage of kind of retailers willing to become
authorized.
 List of Figures

Sr. Figures
no
1 A Graph showing the Percentage of duration of establishment of
retailers

2 A Graph showing the Percentage of sales of various brands of cement

3 A Graph showing the Percentage of cement purchased at a time.

4 A Graph showing the Percentage of storage capacity of retailer

5 A Graph showing the Percentage of frequency of purchasing cement

6 A Graph showing the Percentage of average monthly sale

7 A Graph showing the Percentage of kind of transport vehicle possessed

by retailers.
8 A Graph showing the Percentage of kind of retailers willing to become
authorized.
 Chapter Scheme

Chap. Topic
Page No.
No.
1 Introduction 1-2

2 Company Profile 3-13

3 Industry Profile 14-19

4 Scope of the Work 19-22

5 Objectives 23-24

6 Research Methodology 25-28

7 Data Interpretation and Analysis 29-37

8 Findings and Observations 38-39

9 Limitations 40-41`

10 Suggestions and Recommendations 42-43

11 Conclusion 44-45

12 Bibliography 46-47

13 Annexure 48-
 Chapter-1
Introduction
 Introduction

The project being entitled as “Opportunity of converting multibrand cement retailers into
authorized retailers for Ultratech cement” required a complete study of the cement retail
market in the specified region where the research had to be carried out.

This was carried out in order to increase the market share of Ultratech cement in the specified
market, to make the brand more popular and to make it available in the market at any time.
Also the purpose of making it available in every corner of the place surveyed was to be
served. The project also was helpful in knowing the retailers personally, their market
potential, knowing the problems faced by them in selling the product, the customer’s
perception, the current market trend and also the competitors scenario.

The research was carried out in the Indore market that comes under Grasim Marketing Depot,
Indore. For the purpose of carrying out the work in a proper and systematic manner, the
whole of the Indore market was divided into 5 different regions or Routes. This divided the
whole of the Indore market and the survey was carried out accordingly.

It was required to visit the retailers present in the Indore market, to analyze their market
potential, their knowledge and belongingness to the market and their sales potential.
The company also wanted to do a comparative analysis of various other brands in the market
and its potential competitors.

The company wished to introduce the authorized retailer scheme to the various multibrand
retailers, the work to be done to become authorized, the benefits they get on becoming
authorized and their responsibilities on becoming authorized retailers.
The analysis also indirectly helped the company on deciding the potential retailers for
handling the dealership of the company.

The project was helpful in giving knowledge on how the distribution channel exists in the
market and how does it functions. It was also helpful in making one understand how to
communicate with people in the market and to develop the ability to convince people.
 Chapter-2
Company Profile
 Company Profile

About The Aditya Birla Group

A US $29.2 billion corporation, the Aditya Birla Group is in the league of Fortune 500. It is
anchored by an extraordinary force of 130,000 employees, belonging to 30 different
nationalities.

In India, the Group has been adjudged "The Best Employer in India and among the top 20 in
Asia" by the Hewitt-Economic Times and Wall Street Journal Study 2007. Over 50 per cent
of its revenues flow from its overseas operations.

The Group operates in 25 countries — India, UK, Germany, Hungary, Brazil, Italy, France,
Luxembourg, Switzerland, Australia, USA, Canada, Egypt, China, Thailand, Laos, Indonesia,
Philippines, Dubai, Singapore, Myanmar, Bangladesh, Vietnam, Malaysia and Korea.

The name "Aditya Birla" evokes all that is positive in business and in life. It typifies integrity,
quality, performance, perfection, and above all, character. Our corporate logo, 'The Rising
Sun', symbolises these traits. ('Aditya' is the Sanskrit word for sun).
The logo consists of an inner circle, symbolising the internal universe of the Aditya Birla
Group, an outer circle, symbolising the external universe, and a dynamic meeting of rays
converging and diverging between the two.

Group companies
Grasim Industries Ltd. , Hindalco Industries Ltd. , Aditya Birla Nuvo Ltd. , UltraTech
Cement Ltd.

Indian companies
Aditya Birla Minacs IT Services Ltd. , Aditya Birla Minacs Worldwide Limited , Essel
Mining & Industries Ltd , Idea Cellular Ltd. , Aditya Birla Insulators , Aditya Birla Retail
Limited , Aditya Birla Chemicals (India) Limited

International companies
Thailand
Thai Rayon , Indo Thai Synthetics , Thai Acrylic Fibre , Thai Carbon Black , Aditya Birla
Chemicals (Thailand) Ltd. , Thai Peroxide
Philippines
Indo Phil Group of companies , Pan Century Surfactants Inc.
Indonesia
PT Indo Bharat Rayon , PT Elegant Textile Industry , PT Sunrise Bumi Textiles , PT Indo
Liberty Textiles , PT Indo Raya Kimia
Egypt
Alexandria Carbon Black Company S.A.E , Alexandria Fiber Company S.A.E
China
Liaoning Birla Carbon , Birla Jingwei Fibres Company Limited , Aditya Birla Grasun
Chemicals (Fangchenggang) Ltd.
Canada
A.V. Group
Australia
Aditya Birla Minerals Ltd.
Laos
Birla Laos Pulp & Plantations Company Limited
North and South America, Europe and Asia
Novelis Inc.
Singapore
Swiss Singapore Overseas Enterprises Pte Ltd. (SSOE)

Joint ventures
Birla Sun Life Insurance Company
Birla Sun Life Asset Management Company
Aditya Birla Money Mart Limited
Tanfac Industries Limited

Globally the Aditya Birla Group is:

A metals powerhouse, among the world's most cost-efficient aluminium and copper
producers. Hindalco-Novelis is the largest aluminium rolling company. It is one of the three
biggest producers of primary aluminium in Asia, with the largest single location copper
smelter

:: No.1 in viscose staple fibre

:: The fourth largest producer of insulators
:: The fourth largest producer of carbon black
:: The 10th largest cement producer globally, the largest in Asia.
:: Among the world's top 15 BPO companies and among India's top four
:: Among the best energy efficient fertilizer plants

In India:

:: A premier branded garments player

:: The second largest player in viscose filament yarn
:: The second largest in the chlor-alkali sector
:: Among the top five mobile telephony companies
:: A leading player in life insurance and asset management
:: Among the top three supermarket chains in the retail business

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not
come in the way of the need to keep learning afresh, to keep experimenting.

Vision
To be a premium global conglomerate
with a clear focus on each business.

Mission
To deliver superior value to our customers,
shareholders, employees and
society at large.
Values
Integrity, Commitment, Passion, Seamlessness, Speed
Beyond business
Transcending business for over 50 years now, the Group has been and continues to be
involved in meaningful welfare-driven initiatives that distinctly impact the quality of life of
the weaker sections of society in India, South-East Asia and Egypt.
In India, the Group's social projects span 2,500 villages. It reaches out to six million people
annually through the Aditya Birla Centre for Community Initiatives and Rural Development,
spearheaded by Mrs. Rajashree Birla. Its focus is healthcare, education, sustainable
livelihood, infrastructure and espousing social causes.
The Group runs 42 schools, which provide quality education to over 45,000 children in
India's interiors. Of these, 18,000 children receive free education. An additional 8,000
students receive merit scholarships. Likewise at its 18 hospitals in India, more than 500,000
patients are given extremely subsidized medical care.
The Group transcends the conventional barriers of business and reaches out to the
marginalised because of its conviction of bringing in a more equitable society.

About Ultra Tech Cement

Ultratech Cement was incorporated in 2000 as Larsen & Toubro. Later it was demerged and
acquired by Grasim and was renamed as Ultra Tech Cement in 2004. Today Ultatech cement
a part of Aditya Birla group,is the country’s largest exporter of cement clinker.

It manufactures and markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement
and Portland Pozzolana Cement and has annual capacity of 18.2 million tonnes. All the plants
have received ISO 9001 certification.
It has subsidiaries namely Dakshin Cements and UltraTech Ceylinco.

Products
It manufactures ordinary portland cement commonly used in dry-lean mixes, general-purpose
ready-mixes, and even high strength pre-cast and pre-stressed concrete.
It produces Portland blast furnace that has features like lighter colour, better concrete
workability, easier finishability, higher compressive and flexural strength, improved
resistance to aggressive chemicals and more consistent plastic and hardened consistency.It
also manufactures portland pozzolana cement.
Ultratech cement exports over 2.5 million tonnes per annum which accounts for 30% of
country’s total exports. It exports to countries like Africa, Europe and the Middle East.
Milestone
Ultratech Cement received Greentech Environment Excellence Award by the Greentech
Foundation, New Delhi in the year 2000-2001
The Aditya Birla Group is the 11th largest cement producer in the world and the seventh
largest in Asia.
In 2004-05 it received State and Zonal level I prize for overall performance in Mines safety.
With a total grey cement capacity of 13.12 million tonnes per annum (tpa), UltraTech is
among the largest producers of grey cement in India.
Its units are located at Jawad and Raipur in Madhya Pradesh, Shambhupura in Rajasthan,
Malkhed in Karnataka, Sikka in Gujarat, and Reddipalayam in Tamil Nadu.
All the plants are located close to sizeable limestone mines and are fully automated to ensure
consistent quality.
All the company’s cement units are equipped with state-of-the-art equipment and are
certified with ISO 9001 for quality systems, and ISO 14001 for environment management
systems.
Its national brands are UltraTech Cement (formerly Birla Plus), Birla Super and Birla Ready
Mix concrete.

Vikram Cement
The first production line of this unit at Jawad (Madhya Pradesh) went on stream in 1985, with
a capacity of 0.5 million tpa. Today, with a capacity of a 4.20 million tpa, Vikram Cement
has emerged as a premium regional brand, well-reputed for its strength and consistently
superior performance.
The Vikram Cement unit is one of the few plants to have its own Central Research and
Development Centre. The first ISO 9001 cement plant in the country, Vikram Cement has
also taken the lead in innovative raw mix designs and process conditions.
Vikram Cement has won several accolades at the national and international level for its
quality, efficiency and environmental initiatives. These include:

o The first Indian unit to win the coveted TPM award from the Japan Institute of
Plant Maintenance, Tokyo in 1995
 o The Ramakrishna Bajaj National Quality Award in 1998
o The first cement unit in the world to receive IQRS - Level 6 rating from DNV,
Netherlands.

o The first cement unit in India to receive ISO-14001 (EMS certification from
DNV, Rotterdam, Netherlands) in 1997 and the Occupational Health and
Safety Assessment series - 18001 (certification from DNV, Rotterdam,
Netherlands) in 2001.

Grasim Cement
Grasim Cement was set up as a greenfield cement plant at Raipur, Chhatisgarh, in 1995.
Based on the most advanced technologies, this plant has an annual installed capacity of 2.06
million tpa.
The plant’s unique features include:

o Asia’s first gamma ray belt analyser from Gamma Matrix (USA) ensuring the
highest standards in online quality control.
o India’s first polycom (blast furnace slag grinder) with a dynamic air separator
from Krupp Polysius Germany, which helps to generate the desired
homogeneous particle size distribution.
o One of the few single kiln cement plants producing more than eight varieties
of cement.
o Its captive power generation ensures a reliable power supply. The plant is also
an ISO 14001, ISO 9001, and IQRS L-5 certified unit.

Aditya Cement
Commissioned in a record time of 22 months as a Greenfield 1.0 mtpa plant in 1995 in
Shambupura, Rajasthan, its current capacity is about 1.50 million tpa.
Some of the prestigious awards won by this unit include ::

o Aditya Limestone Mines wins the following awards at the Mines Safety Week 2004,
Udaipur
o Mines machinery and maintenance: first
 o Safety, occupational health and VTC: first
o Mine working: second
o Environment protection, publicity, propaganda
and housekeeping: second
o Overall performance: second
o Best Productivity Award by National Productivity Council for 1999
o The National Energy Conservation Award by Ministry of Power, Government of
India, and Best Energy Efficient Unit Award by CII for the year 2000
o IQRS level rating from DNV, Netherlands, in the year 2000
o First in India to achieve Certification ISO 9001:2000 by DNV, Netherlands, 2001
o TPM Excellence Award – first category by JIPM, Tokyo 2001

Rajashree and Birla Super cement

Commissioned in 1984, Rajashree Cement has a capacity of 4.20 million tpa. The salient
facts about Rajashree Cement are :

o Coal-based thermal power plant with a 38.5 MW capacity

o Modern dry process technology from KhD, Germany, with a state-of-the-art
process control system
o The only cement plant in India with a captive coal washery
o First in India to achieve Certification ISO 9001:2000 by DNV, Netherlands,
2001
Cement varieties catering to different segments: Rajashree Cement for residential and
commercial construction; Birla Super Cement for multi-storeyed buildings, dams and
bridges; UltraTech Cement (formerly Birla Plus) for mass concrete laying and non-structural
applications, Birla Coastal for foundation work and for use in coastal areas as well as sugar
and fertiliser plants, and OPC 53 - S (sleeper grade cement)
Some of the awards won by this unit are :

o National Award for ‘Quality Excellence in the Indian Cement Industry’ by the
National Council for Cement and Building Materials, for the year 2000-01
o IMC Ramakrishna Bajaj National Quality Award (certificate of merit) in 1999
o Jamnalal Bajaj Uchit Vyavahar Puraskar for Fair Business Practices in 1995
 o Rajiv Gandhi National Quality Award in 1993

Grasim South
Grasim acquired Dharani Cements (since merged with the company) in April 1998. The
company has a cement plant at Ariyalur, Tamil Nadu. In April 2000, a state-of-the-art cement
plant, among the most modern in Asia, was commissioned at Reddipalayam, Tamil Nadu.
This unit now has a capacity of 1.16 million tpa.
This is the only plant to be equipped with an auto/ robot lab system for consistent quality and
optimising cost. Apart from these, the auto/ robot lab assures

o quality cement of world class standard

o accuracy and consistency

Samruddhi Cement Limited merges with UltraTech

Creates 10th Largest Cement Company in the World
Samruddhi shareholders to receive 4 shares of UltraTech for every 7 shares held in
Samruddhi. On completion of merger, Samruddhi shareholders to get direct participation in
the largest domestic cement company.
The Boards of Directors of UltraTech Cement Limited (UltraTech) and Samruddhi Cement
Limited (Samruddhi), a wholly owned subsidiary of Grasim Industries Limited (Grasim), at
their meetings held today unanimously approved Samruddhi’s merger with UltraTech.
The exchange ratio recommended by the valuers and approved by both boards is 4 (four)
equity shares of UltraTech of face value Rs. 10/- each for every 7 (seven) equity shares of
Samruddhi of face value Rs. 5/- each.
UltraTech will issue 14.95 crore new shares, thereby increasing its equity capital to Rs.
274.20 crore.
The merged entity:
The merger will result in UltraTech emerging as the largest cement company in India and
10th largest in the world. The merged entity will have the following capacities:
 o 48.8 million tpa of grey cement across 22 plants
o 504 MW of captive thermal power plants
o 11.7 million cubic metres of Ready Mix Concrete across 68 plants.

UltraTech will become a pan India player with a 20 per cent market share. Additionally,
UltraTech will also add to its portfolio the speciality products of white cement and Wallcare
Putty.
The merger scheme:
According to the proposal approved by both the Boards, the merger is to be undertaken
through a Court approved Scheme of Amalgamation under Sections 391 to 394 of the
Companies Act, 1956. The appointed date for the merger is 1 July 2010.
The cement business of Grasim is currently under demerger to Samruddhi, and the proposed
merger scheme will take effect only upon completion of the demerger and the issuance of
shares by Samruddhi to shareholders of Grasim pursuant to the demerger. Upon effectiveness
of the Scheme, UltraTech’s expanded equity capital will be held 60.3 per cent by Grasim and
39.7 per cent will be held directly by the other shareholders of UltraTech and Samruddhi.
The proposed Scheme of Amalgamation will be subject to the approvals of the High Court of
Bombay and the High Court of Gujarat. The proposal will further be subject to various
statutory approvals, including those from the shareholders and lenders / creditors.
The Scheme is likely to be consummated by Q3 CY10.
Commenting on the merger, Mr. Kumar Mangalam Birla, Aditya Birla Group Chairman said:
“The merger will achieve the Group’s objective of consolidating its Cement Business into a
single entity, thereby creating a platform that will help in pursuing aggressive growth going
forward.”

Mr. Adesh Gupta, Whole Time Director and Chief Financial Officer, Grasim and a Director
of Samruddhi said “Upon effectiveness of the merger, Grasim will retain a strategic and
controlling interest in UltraTech while providing UltraTech flexibility for future fund
raising.”

Mr. K.C. Birla Chief Financial Officer, UltraTech, said “The merger represents an inflexion
point for UltraTech. The combined profitability and cash flows of the resultant entity will
provide an impetus to our growth and will act as a force multiplier to our efforts of increasing
market share. The financial indicators post merger will support UltraTech to maintain its
credit rating. We expect UltraTech’s stock to be re-rated on completion of the merger
process.”

Chapter-3
Industry Profile
 Industry profile

India, being the second largest cement producer in the world after China with a total capacity
of 151.2 Million Tonnes (MT), has got a huge cement industry. With the government of India
giving boost to various infrastructure projects, housing facilities and road networks, the
cement industry in India is currently growing at an enviable pace. More growth in the Indian
cement industry is expected in the coming years. It is also predicted that the cement
production in India would rise to 236.16 MT in FY11. It's also expected to rise to 262.61 MT
in FY12.

The cement industry in India is dominated by around 20 companies, which account for
almost 70% of the total cement production in India. In the present year, the Indian cement
companies have produced 11 MT cement during April-September 2009. It took the total
cement production in FY09 to 231 MT.

Industry Background
The history of the cement industry in India dates back to the 1889 when a Kolkata-based
company started manufacturing cement from Argillaceous. But the industry started getting
the organized shape in the early 1900s. In 1914, India Cement Company Ltd was established
in Porbandar with a capacity of 10,000 tons and production of 1000 installed. The World War
I gave the first initial thrust to the cement industry in India and the industry started growing at
a fast rate in terms of production, manufacturing units, and installed capacity. This stage was
referred to as the Nascent Stage of Indian Cement Industry. In 1927, Concrete Association of
India was set up to create public awareness on the utility of cement as well as to propagate
cement consumption.

The cement industry in India saw the price and distribution control system in the year 1956,
established to ensure fair price model for consumers as well as manufacturers. Later in 1977,
government authorized new manufacturing units (as well as existing units going for capacity
enhancement) to put a higher price tag for their products. A couple of years later, government
introduced a three-tier pricing system with different pricing on cement produced in high,
medium and low cost plants.

Cement industry, in any country, plays a major role in the growth of the nation. Cement
industry in India was under full control and supervision of the government. However, it got
relief at a large extent after the economic reform. But government interference, especially in
the pricing, is still evident in India. In spite of being the second largest cement producer in
the world, India falls in the list of lowest per capita consumption of cement with 125 kg. The
reason behind this is the poor rural people who mostly live in mud huts and cannot afford to
have the commodity. Despite the fact, the demand and supply of cement in India has grown
up. In a fast developing economy like India, there is always large possibility of expansion of
cement industry.

Cement Production and Growth

Domestic demand plays a major role in the fast growth of cement industry in India. In fact the
domestic demand of cement has surpassed the economic growth rate of India. The cement
consumption is expected to rise more than 22% by 2009-10 from 2007-08. In cement
consumption, the state of Maharashtra leads the table with 12.18% consumption, followed by
Uttar Pradesh. In terms of cement production, Andhra Pradesh leads the list with 14.72% of
production, while Rajasthan remains at second position.

The production of cement in India grew at a rate of 9.1% during 2006-07 against the total
production of 147.8 MT in the previous fiscal year. During April to October 2008-09, the
production of cement in India was 101.04 MT comparing to 95.05 MT during the same
period in the previous year. During October 2009, the total cement production in India was
12.37 MT compared to a production of 11.61 MT in the same month in the previous year.
The cement companies are also increasing their productions due to the high market demand.
The cement companies have seen a net profit growth rate of 85%. With this huge success, the
cement industry in India has contributed almost 8% to India's economic development.

Technology Up-gradation
Cement industry in India is currently going through a technological change as a lot of
upgradation and assimilation is taking place. Currently, almost 93% of the total capacity is
based entirely on the modern dry process, which is considered as more environment-friendly.
Only the rest 7% uses old wet and semi-dry process technology. There is also a huge scope of
waste heat recovery in the cement plants, which lead to reduction in the emission level and
hence improves the environment.
Cement Despatches
Cement industry in India has successfully maintained almost total capacity utilization levels,
which resulted in maintaining a 10% growth rate. In 2006-07, the total despatch was 155 MT,
which rose up to 170 MT in 2007-08. The month of October 2009 saw a cement despatch of
12.22 MT, which was almost 9% higher than the total cement despatch of 11.21 MT in the
same month in the previous year.

  2008-09 (Apr-Oct) (in MT) 2007-08 (Apr-Oct) in MT

Production 101.04 95.05
Despatches (Excluding Export) 100.24 94.33
Export 1.46 2.16
Capacity Utilization (%) 85 93

Major Players in Indian Cement Industry

There are a number of players prevailing in the cement industry in India. However, there are
around 20 big names that account for more than 70% of the total cement production in India.
The total installed capacity is distributed over around 129 plants, owned by 54 major
companies across the nation.

Following are some of the major names in the Indian cement industry:

Company Production Installed Capacity

ACC 17,902 18,640
Gujarat Ambuja 15,094 14,860
Ultratech 13,707 17,000
Grasim 14,649 14,115
India Cements 8,434 8,810
JK Group 6,174 6,680
Jaypee Group 6,316 6,531
Century 6,636 6,300
Madras Cements 4,550 5,470
Birla Corp. 5,150 5,113
Mergers and Acquisitions in Cement Industry in India
 UltraTech Cement is going to absorb its sister concern Samruddhi Cement to become
biggest cement company in India.
 World's leading foreign funds like HSBC, ABN Amro, Fidelity, Emerging Market
Fund and Asset Management Fund have together bought 7.5% of India Cements
(ICL) at a cost of US$ 124.91 million.
 Cimpor, a Cement company of Portugal, has bought 53.63% stake that Grasim
Industries had in Shree Digvijay Cement.
 French cement company Vicat SA bought 6.67% share of Sagar Cement at a cost of
US$ 14.35 million.
 Holcim now holds 56% stake of Ambuja Cement. Previously it held 22% of stake.
The company utilized various open market transactions to increase its stakes. It
invested US$ 1.8 billion for that.

Recent Investments in the Indian Cement Industry

 In a recent announcement, the second largest cement company in South India, Dalmia
Cement declared that it's going to invest more than US$ 652.6 million in the next 2-3
years to add 10 MT capacity.
 Anil Ambani-led Reliance Infrastructure is going to build up cement plants with a
total capacity of yearly 20 MT in the next 5 years. For this, the company will invest
US$ 2.1 billion.
 India Cements is going to set up 2 thermal power plants in Andhra Pradesh and Tamil
Nadu at a cost of US$ 104 billion.
 Anil Ambani-led Reliance Cementation is also going to set up a 5 MT integrated
cement plant in Maharashtra. It will invest US$ 463.2 million for that.
 Jaiprakash Associates Ltd has signed a MoU with Assam Mineral Development
Corporation Limited to set up a 2 MT cement plant. The estimated project cost is US$
221.36 million.
 Rungta Mines (RML) is also planning to invest US$ 123 million for setting up a 1 MT
cement plant in Orissa.
 Chapter-4
Scope of the Work
 Scope of Work

The project was carried out at the Grasim Marketing Depot , Indore ; which handles the
operations in the central zone and nearby areas.
The main operations were:
 To get the data of total bandhan retailers across Indore city.

 To understand authorized retailer scheme and convincing for conversion of those

counters.

Conditions to be fulfilled by the retailer to become autorised :

 They had to apply for it to company’s marketing officers/ in the grasim Indore depot
to the dealer under which they come in the BANDHAN scheme.

 They were required to give a deposit of Rs. 10000 in advance to the company.

 They are required to meet the sales target set by the company for them.

 More than 70 % of the sales done by them should be of UltraTech cement.

Benefits they get after being authorized:

 Company would keep a direct watch on the supply made to them.

 The company would ensure they get the quantity they ordered and not less than that.

 The company would carry on the shop and wall painting of the retailer.

 They would be exposed to various lucky draw schemes organized by the company
exclusively for authorized retailers from time to time.

 If they meet their sales target every time and make good sales, the company organizes
foreign tours for such outstanding performers.
  This would open gates for the retailers to come into the que of becoming / being
considered for dealership.

Modular operations

Dividing Indore city into various routes and visiting retailers accordingly.
For this purpose, the whole of the Indore city was divided into five major routes. They wre
route 1, route 2, route 3, route 4 and route 5.
Route 1 had 26 retailers lying in its region , route 2 had 55, route 3 had 71 and route 4 and 5
had 42 and 67 retailers respectively. This comes out to be a total of 261 non authorized
multibrand cement retailers.
Apart from knowing their opinion on becoming authorized retailer , their potential was also
to be analyzed and the problem faced by them was also to be enquired.
 Chapter-5
Objectives of the Work
 Objectives

The primary objective of the project is same as that suggested by the title of the project i.e.
“To search out for the opportunity of converting multibrand cement retailers into Authorized
retailers for Ultra Tech cement”
For this the retailers were to be located , visited and enquired about their knowledge
regarding the scheme and explaining the scheme to them in full and then knowing their view
about whether they were interested in becoming authorized retailer for Ultratech cement or
not.

The various other objectives fulfilled by the project were:

 To find out the popularity of other brands and their status in the market.

 To find out for how long has the retailer been in the market and how well does he
knows and understands it.

 To find out the purchasing potential of the retailer in the market.

 To find out how frequently the sale of cement is carried out and what is the status of
demand of cement in the market.

 The potential of retailers for meeting small and bulk orders.

 To carry out a comparative study of popular brands in the market.

 To find out the problems faced by retailers in the market.

For this the questionnaire had to be designed in such a way that it covers up every
information regarding the retailer, the brand he sells ,brand wise sales quantity, his total
monthly sales and then his opinion on becoming authorized.
 Chapter-6
Research Methodology
 Research Methodology

Definition and meaning

“Research concerns itself with obtaining information through empirical observation that can
be used to systematically developed, logically related propositions so as to attempt to
establish casual relationships among variables.”

Research means “A careful investigation or enquiry search or few facts in any branch of
knowledge.” It is an academic activity, which contributes to the existing stock of knowledge
making for its advancement. It comprises of data collection, observation, comparison,
interpretation and findings. It refers to a systematic method of enunciating the problem. Thus
when we talk about research or research methodology, we not only talk about research
method but also consider the logic behind it.

The research design constitutes the blueprint for the collection, measurement and analysis of
the data. Basically research design is the plan and structure of investigation, so conceived as
to obtain answers to the research questions.

The area covered under the project study was a sample of retailers present in the Indore city.
The study was conducted through questionnaires and interaction with the customers. The
interaction was mainly done by directly visiting the retailers’ shop or counters.

Research Process

A research process consists of a number of closely related activities but the activities overlap
continuously rather than following a strict prescribed sequence. At times, the first step
determines the nature of the last step to be undertaken. If subsequent procedures have not
been taken into account in the early stages, serious difficulties may arise which may even
prevent the completion of the study. One should remember that the various steps involved in
a research process are not mutually exclusive; nor are they separate and distinct. They do not
necessarily follow each other in any specific order and the researcher has to be constantly
anticipating at each step in the research process the requirement of the subsequent steps.
However, the following order concerning various steps provides a useful procedure, guideline
regarding the research process:
 Formulating the research problem
  Extensive literature survey
 Developing the hypothesis
 Preparing the research design
 Determining the sample design
 Collecting the data
 Execution of the project
 Analysis of data
 Hypothesis testing
 Generalizations and interpretation
 Preparation of the report or presentation of the results

Research Design
The formidable problem that follows the task of defining the research problem is the
preparation of the design, popularly known as the “research design”. Decisions regarding
what, where, how much, by what means concerning an inquiry or research study constitute a
research design. “A research design is the arrangement of conditions for collection and
analysis of data in a manner that aims to combine relevance to the research purpose with
economy in procedure.” In fact, the research design is the conceptual structure within which
research is conducted: It constitutes the blueprint for the collection, measurement and
analysis of data. As such the design includes an outline of what the researcher will do from
writing the hypothesis and its operational implications to the final analysis of data.
More explicitly, the designing decision happens to be in respect of:
i. What is the study about?
ii. Why is the study being made?
iii. Where will the study be carried out?
iv. What type of data is required?
v. Where can the required data be found?
vi. What period of time will the study include?
vii. What will be the sample design?
viii. What techniques of data collection will be used?
ix. How will the data be analyzed?
x. In what style will the report be prepared?
Data Collection

Tools of data collection

Questionnaire method:
Questionnaire is a set of questions structured in a proper format, which are sent to the
respondents and accordingly the analysis being done.

Interview Technique:
Interview is a conversation held between two persons. In the interview, the interviewer
asks specific questions pertaining to research objectives and the respondents restrict his
answers to specific questions posed by the interviewer.

Schedules
Schedules (Performa containing a set of questions) are filled in by enumerators who are
specially appointed for the purpose. These enumerators along with the schedules go to
respondents, put to them the questions from the Performa in the order the questions are listed
and listed and record the replies in the space meant for the same in the Performa.
Enumerators explain the aim and object of the investigation and also remove the difficulties
which any respondent may feel in understanding the implication of a particular question or
the definition or concept of difficult terms.
This method of data collection is very useful in extensive enquiries and can lead to fairly
reliable results.

Primary & Secondary Data

The primary data and secondary was determined using research methods, which was
mostly quantitative in nature and the secondary data, were collected from the libraries and
internet. Survey with the help of questionnaire was mainly in use although it was more of a
schedule rather than being a questionnaire.

Type of research: Exploratory research

Sample frame: Cement retailers
Sample design: Questionnaire cum schedule
Sample Size: 41 retailers
Sampling method: Deliberate sampling
 Chapter-7
Data Interpretation and Analysis
 Data Interpretation and Analysis

Table No. 1

Table showing the Percentage of duration of establishment of retailers

CATEGORY NUMBER OF PERCENTAGE

RETAILERS
0-10 6 26
10-20 10 44
20-30 7 30

A graphical representation of the data

0-10 YEARS
10-20 YEARS
20-30 YEARS
30% 26%

44%
The graph shows that most of the retailers currently present in the market , i.e. 17 of the
retailers present if the market have an establishment of more than 10 years, showing that the
are quite a long time of establishment and are well familiar with the market. Only few, i.e. 6
of them are comparatively new in the field.
Table No. 2.

Table showing the Percentage of sales of various brands of cement.

CATEGORY NUMBER PERCENTAGE

ULTRA TECH 18 33
JAYPEE 10 18
J.K 4 7
AMBUJA 5 9
OTHERS 18 33

A graphical representation of the data

35
30
25
20
15
10
5
0
ULTRA TECH JAYPEE J.K AMBUJA OTHERS
The above graph shows that most of the retailers prefer to purchase more of Ultratech cement
over the other competing brands.

Table No. 3.

Table showing the Percentage of cement purchased at a time.

CATEGORY NUMBER PERCENTAGE

LESS THAN 150 3 17
150-300 11 61
300-450 1 5
MORE THAN 450 3 17

A graphical representation of the data

 LESS THAN 150
150-300
300-450
MORE THAN 450

The graph shows that that the retailers order lesser bags of cement, less than 300 mostly,
showing that the sales is carried on the basis of instant orders and placing an order to the
companies accordingly.

Table No. 4.

Table showing the Percentage of storage capacity of retailer

CATEGORY NUMBER PERCENTAGE

LESS THAN 200 10 48
200-400 6 29
400-600 2 9
MORE THAN 600 3 14

A graphical representation of the data

The above figure shows that most of the retailers generally stock less of cement at any time,
less than 200. This is again due to the reason that they mainly order the cement to the
company according to the bigger orders placed to them.

Table No. 5.

Table showing the Percentage of frequency of purchasing cement

CATEGORY NUMBER PERCENTAGE

DAILY 4 19
ALTERNATE DAY 7 33
WEEKLY 9 43
FORTNIGHT 1 5

A graphical representation of the data

Most of the retailers, nearly 52 %, i.e. 104 retailers, did their purchase either daily or on
alternate day, showing that the purchase was carried out frequently. 43 %, i.e. 86 retailers,
purchased on a weekly basis and very few did it on fortnights.

Table No. 6.

Table showing the Percentage of average monthly sale

CATEGORY NUMBER PERCENTAGE

LESS THAN 1000 5 25
1000-2000 6 30
2000-3000 4 20
MORE THAN 3000 5 25

A graphical representation of the data

 Sales

50 50
LESS THAN 1000
1000-2000
2000-3000
MORE THAN 3000
40
60

The above figure shows that of the total retailers visited, 10 had an average monthly sales of
more then 2000, fully capable making a fair sales required by an authorized retailer to do. For
others, doing a sale of less than 2000, there are those retailers who sold exclusively Ultratech,
so they can also be considered.

Table No. 7.

Table showing the Percentage of kind of transport vehicle possessed by retailers

CATEGORY PERCENTAGE
Truck 12
Matador 20
Rickshaw 50
Others/rented 18

A graphical representation of the data

 50

40

30

20

10

0
Truck Matador Rickshaw Others/rented

Table No. 8.

Table showing the Percentage of kind of retailers willing to become authorized

CATEGORY No. of retailers PERCENTAGE

Yes 21 51
No 20 49
 Yes
No

The above figure shows that how many retailers are actually interested in becoming
authorized retailer for Ultratech cement. It shows that of the total retailers visited, 21 retailers
were ready to get converted to authorized retailers for Ultratech cement and 20 of them were
either not interested or wanted to think about it later.
 Chapter-8
Observations and Findings
 Observation and Findings

Nearly 51% of the respondents, are very much interested in becoming authorized retailers for
Ultratech cement.
Most of the respondents willing to become authorized retailers have an average monthly sale
of 1000 - 2000 bags per month and few of them also lied in the category of 2000 – 3000 and
more than 3000 bags per month. There were also few who had an average monthly sale of
less than 1000 but they sold only Ultratech cement on their counters.
Of the total respondents, most have an establishment since last 10 – 20 years, having a fair
knowledge of the market. So their knowledge of the market is quite reliable and can represent
the whole market opinion.
Most of them have their own small vehicles and also have rented big vehicles like trucks and
tractors in order to carry small and bulk orders.
Most of the sale was carried out on the basis of prior orders and the purchase was carried out
alternate days, so even if the stocking was less, it could hardly matter.
The brand wise analysis shows that the various competing brands are AMBUJA and
JAYPEE.
The research reviled the fact that Ultratech is a very popular brand in the market and
generally preferred by the customers over other brands.
The research was also helpful in finding out the current cement market position and the
market condition and problems faced by retailers. It reviled that Ultratech cement has a price
monopoly in the market.
It was also found out that the retailers had a problem with few dealers and the bandhan
scheme. Some also face the problem of delay in the delivery.
The overall observation was that if few of the small problems faced by the retailers is resolve,
there is a huge scope of increasing market share of Ultratech to great extent in the Indore
market.
Chapter-9
Limitations
 Limitations

Though Ultratech is the most popular brand in the market and amongst the customers too ,
there are few limitations due to which the retailers were resistant to become authorized for
Ultratech cement. The very common amongst these were:

 The retailers complained that the dealers have a monopoly in the market. They sell the
cement directly to the customer at a price at which they sell to the retailers or
sometimes even for less than that, engulfing their role and profit.

 The retailers present in the market were bound to particular dealers, from only whom
they could purchase cement under the Bandhan scheme. The retailers didn’t like such
binding.

 The profit margin the retailers could generate per bag of Ultratech was very less as
compared to any other brand of cement sold in the market.

The various problems faced during the operation of doing the research were:

 The retail counters were present at great distance from each other and many of them
were located in far flung areas, so it was difficult to cover up the target set for the
days.

 Many of the counters remained closed during most of the times.

 It was difficult to find the concerned person, the proprietor or the one who was
responsible enough to respond, as most the times they used to be at the construction
sites.

 Certain retailers were very busy to answer the rest of the questionnaire and just
responded to their opinion about the scheme. Few others were even rigid and resistant
in giving any information.
 Chapter-10
Suggestions and Recommendations
 Suggestions and Recommendations

Ultratech sells by itself. The brand, no doubt, is very popular and customers prefer it over
other brands. If compared to any other brand, Ultratech has the maximum sales in the market.

Even then, certain retailers don’t want to become authorized for Ultratech cement due to
certain reasons.
Few recommendations that can be suggested on the basis of observation of the market are:
 Making the dealers understand that they should not be unjust to the retailers and
should not sell the product directly to the customers below the retail price.

 According to the bandhan scheme, the retailers are bind to a particular retailer from
whom he purchases the cement. At times when the retailer not able to deliver the
quantity ordered in time , the retailer cannot approach any other dealer. This may be
worked upon.

 The retailer may be made free to choose dealer for himself.

Ultratech has the highest price and the lowest margin as compared to any other brand in the
market. A slight change in the pricing policy can be helpful in increasing sales to much
extent.
Chapter-11
Conclusion
 Conclusion

The conclusion that can be drawn from the observation of the questionnaire and the market
shows that out of the total retailers visited, 51 % of the retailers are ready to become
authorized retailers for Ultratech cement.
Ultratech is a very popular brand in the market, preferred by the customers and so the
retailers prefer to become authorized for Ultratech cement.

For those who don’t want to become authorized, also have the opinion that Ultratech has a
good reputation in the market and preferred over other brands by the customers.

Even then they don’t want to attach themselves directly to the company becau8se of the
following reasons:
 They don’t want to bind to any single brand by any scheme and want to sell all other
brands according to the demand or order placed.

 The monopoly of the dealers of Ultratech cement and the bandhan scheme i.e. binding
a single retailer for placing their orders.

 The low margin they get by selling Ultratech. Due to price monopoly of Ultratech
they get it at a high price from the dealers and have to sell it at a lower margin in the
market because of a tough competition amongst themselves.

This leads to the conclusion that there is a good opportunity of converting multibrand
retailers into authorized retailers for Ultratech cement if few things are analyzed and revised.
Bibliography
 Bibliography

Philip Kotler, Kevin Lane Keller; “Marketing Management”; Pearson Education; 13th edition,
page no. 415-417.
Philip Kotler; “Marketing Insight from A to Z”; John Wiley & Sons, Inc., Hoboken, New
Jersey; page no. 53-56, 154-156.
John Burnett; “Core Concepts of Marketing”; Creative Common Attributions; 1st edition;
page no. 255-262.
Tony Proctor; “essentials of Marketing Research”; Pearson Education; 4th edition; page no.
17, 44-68, 106-129.
C.R. Kothari; “Research Methodology- Methods and Techniques”; New Age International
Publishers; 2nd revised edition, reprint 2009.

Websites:

http://www.ultratechcement.com/about_us/index.htm
http://www.ultratechcement.com/products/index.htm
http://www.ultratechcement.com/media/press_releases/2009sept/cement_performance_aug09
.htm
http://www.ultratechcement.com/media/press_releases/200911_nov/Samruddhi_and_UltraTe
ch_merger.htm
http://en.wikipedia.org/wiki/Cement
http://ies.lbl.gov/iespubs/41842.pdf
www.emt-india.net/.../cement/.../industry%20overview%20-%20Cement.pdf
www.dti.gov.ph/uploads/DownloadableForms/cement_industry.pdf
Annexure
 Years Avg.
S.No Firm Proprietor Contact No. Address of Monthly Opinion
Estb. Sales
Maa narmada khandwa naka,
1 Mr. Mohan Singh 9826069345 5 yrs 2000 No
traders ranibagh
tejaji nagar,
anuradha
Panchal Mr. Subhash
2 9826716693 colony,opp. 1 yr 1000 Yes
Traders panchal
Reliance petrol
pump
33 - 34 anuradha
Rajpoot Shri
3 Mr. jitendra dhaneja 9926154207 colony , tejaji 10 yrs 2500 Yes
Traders
nagar
Mahaveer 34 vikas nagar
4 Mr. sanjeev yadav 9826086450 25 yrs 4500 Yes
traders complex
0731
5 Yadav brothers Mr. Rajesh yadav 87 chatribagh 25 yrs 2500 not now
2341131
20 khatiwala tank
6 Saini traders Mr. shamsher singh 98935 45808 10 yrs 500 No
, near bsnl office
74 veer sawarkar
7 Aman traders Mr.S. Dua 9424500945 14 yrs 2000 No
nagar
Mohammad Yusuf
8 Cash traders 9893426457 16/2 manik bagh 10 yrs 1000 No
Khan
Mr. Devendra 160 bhagirath
9 Binjawa traders 9713776602 10 yrs 400 Yes
Binjwa nagar
10 Jain Brothers Mr. Sudhir Jain 9826507792 49/4 pardasipura 20 yrs 600 No
0731
11 Shikha traders Mr. Kailash Lahoti 18/2 old palasiya 25 yrs 18000 Yes
2564424
Mr. Pradeep 0731
12 Pooja traders 33 scheme no 54 15 yrs 1000 Yes
Mandawat 2558460
Shri Narmada Mr.Radheshyam Eh 33 scheme no
13 9425346364 20 yrs 1000 Yes
Traders Dubey 54
Soni Building 153 scheme no
14 Mr. Raj Soni 9229571003 12 yrs 1500 Yes
Materials 114
20 b chandan
New Soni Mr. Rajendra kumar
15 9826394336 nagar , barfani 12 yrs 1500 Yes
Traders Soni
dham
Mr. Inayad Ullah 195 khajrabad , want
16 Khaizer Traders 9827062158 15 yrs 3000
Khan khajarana delarship
16 shree ram
Kumawat Mr. Dinesh
17 9826058604 nagar , 9 yrs No
Traders kumawat
musakhedi
151 kohinoor
18 Ali Traders Mr. Shiraj Ali 9893336756 20 yrs 3000 Yes
colony , teen imli
121 mayur
Mahalaxmi Mr. Akhilesh
19 9993466447 nagar , 7 yrs 1300 Yes
Traders Chauhan
musakhedi
mayur nagar ,
20 Gurjar Traders Mr. mukesh Gurjar 9926003100 3 yrs 1000 No
musakhedi
1000 , sudama
21 Patni traders Mr. Ritesh Patni 9826011747 20 yrs 5000 Yes
Nagar
9893033112 3115 sudama
22 Tirupati Traders Mr.Anil Jajodia 13 yrs 1500 Yes
2 nagar
Mr. Akhilesh
0731 g-4 anmol tower ,
23 A.B. enterprises Kumawat & Mr. 8 yrs 6000 Yes
2796827 sudama nagar
baljeet Singh Saluja
Surman Mr. manmohan 5-A vaishaali
24 9425058885 15 yrs 7000 No
Traders Singh nagar
 Saurabh 6 usha nagar ,
25 Mr. Sunil Patil 9826084683 13 yrs 2000 No
Traders H.B. road
Kapil Hardware 3666- E sudama
26 Mr. Mahesh Sharma 9329677610 10 yrs 1500 No
& sanitations nagar
Mr. Kamalesh 2445- E sudama
27 Vikas Traders 9826043593 13 yrs 3000 Yes
Yadav nagar
255- E sudama
28 Mata traders Mr. kailash Mata 9826032500 25 yrs 3000 Yes
Nagar
opposite
29 Rathi Traders Mr. S. Rathi 15 yrs 500 No
Anapurna mandir
30 Daulat Traders Mr.Dulat Mata 9826150838 H.B Road 20 yrs 2000 No
3664- E Sudama
31 Anil Traders Mr. Anil Mata 9829066097 18 yrs 1500 No
Nagar
Sony Building
32 Mr. Subhash Soni 9826044385 Scheme No.114 20 yrs 2000 not now
Materials
75 khajrana main
33 Heena traders Mr. Makhan guar 9329479292 10 yrs 2000 yes
road
pratap nagar
Gurdeep
34 Mr. surjeet singh 9229228347 manik bhaag 25 yrs 3000 no`
cement agency
bridge
Shri Dinesh opp. Standard
35 Mr. Satish ratore 20 yrs 1500 `no
traders public school
khandwa naka,
36 Rubal traders mr. trilok singh 23 yrs 500 No
ranibagh
Mr. Abhishek 25 sanjan nagar
37 Shukla traders 9893140083 25 yrs 3000 converted
Shukla Nemwar road
thekadar market
Shri sai aradna
38 Mr. captain 9754796349 near by paas 25yrs 4000 yes
tradres
tejaji nagar
Agarawal Mr. rameshwar Patnipura
39 7312555198 15 yrs 1500 No
sanitay wares agrawal Chauraha
New Soni 14 jagjeevan
40 Mr. rakesh soni 9926394318 20 yrs 1800 No
Brother nagar MIG thana
Sahu senitary MIG main road
41 Mr. Ashok sahu 9893078877 18 yrs 2200 No
weres Patnipura