The Strategic Alliance between “India Cements and “Chennai Super Kings”.

A case study for Strategic Management Course
Amrita School of Business, Kochi
Aswathy P, Arun Stephen, Arun Sen Kumar, Bhavya, Dona, Dheera, Divya, Deepthi, Dheeraj, Febin P N, Gauri.

INTRODUCTION AND BACKGROUND India Cements Limited is a cement manufacturing company in India. It was established in 1946 and the first plant was set up at Sankarnagar in Tamil Nadu in 1949.India Cements, a household name in Tamil Nadu and Andhra Pradesh, decided to expand into the north Indian markets of Rajasthan, Gujarat and Madhya Pradesh. The Chennai-headquartered company bought a manufacturing unit in Rajasthan. The idea was good, but the results were disappointing. Local dealers shied away from India Cements.

ABOUT CEMENT INDUSTRY: Cement is one of the core industries which plays a vital role in the growth and development of a nation. The cement industry in India has been expanding significantly on back of increasing infrastructure activities and demand from housing sector. Keeping in line with the technological world, the Indian cement industry has transited itself into a more advanced one. At present, the Indian cement industry is positioned on the second rank globally and comprise of 183 large and 365 mini cement plants. Moreover, the Indian cement majors, including ACC Ltd, Shree Cement Ltd and Ultratech, have signed a co-operation pact to support low-carbon investments in India. The pact was signed in Geneva with member companies of the World Business Council (WBC) for Sustainable Development’s Cement Sustainability Initiative and International Finance Corporation (IFC). The roadmap will pose as a possible transition path for the Indian cement industry to reduce its direct emissions by 18 per cent by 2050.

Market Size: A RNCOS report titled “Indian Cement Industry Outlook 2015” estimated that the total installed capacity of cement in India will increase with a compound annual growth rate (CAGR) of around 7 per cent during 2012-13 to 2014-15. If the slowdown in real estate persists for an extended period. The importance of the housing sector in cement demand can be gauged from the fact that it consumes nearly two-thirds of the country’s total cement. high prices of commodities and fuels. India Cement is the 3rd largest cement company in India. The growth prospects of the cement industry are closely linked to the growth of the overall economy in general and the real estate and construction sectors in particular. Sankaralinga Iyer. Sankar Cement and Coramandel Cement are the brands used by ICL to market their produce. high interest rates. N. . N. The capacities of its plants are over 9 million tons per annum. it would impact the growth in consumption of cement ABOUT THE COMPANY: India Cements Limited is a cement manufacturing company in India. It was established in 1946 and the first plant was set up at Sankarnagar in Tamil Nadu in 1949. The Company's plants are well spread with three in Tamilnadu and four in Andhra Pradesh which cater to all major markets in South India and Maharashtra. The growth of the Indian economy has slowed down in recent times on account of the rising inflation. India Cements was founded by S.

India Cements has also tied up with leading apparel brands and team sponsors to help in huge brand promotion at minimal cost. India Cements Ltd. Srinivasan. On Feb 02 2013. Srinivasan is also involved in BCCI and AICF. also owns Indian Premier League's Chennai franchise. Vice chairman and managing director. MS Dhoni was appointed as the Vice President of the India Cements. The entire idea here was brand promotion. the Indian administrative bodies for Cricket and Chess. and of course to give the company a corporate image of its own. . The day-to-day affairs of the company are managed by Executive president Mr.The company is headed by N.Raghupathy and other key personnel in each functional area. Chennai Super Kings. Dhoni resigned from Air India and took over as the vice president of the India Cements Shantanu bilse is the partner and pursuing his masters in USA. T.S.

The cement is transported to the dealers/distributors and also to sub dealers who finally sell it to the customers. Also through C and F agents. drilling or blasting methods of mining. It aims to achieve a 35% market share in the near future. The Company has access to huge limestone resources and plans to expand capacity by de-bottlenecking and optimization of existing plants as well as by acquisitions. building blocks. staff cost (9%). raw material (15%). pyro processing. marine structures etc. concrete roads etc. runways. Distribution Channel: The Company distributes its products through different channels. The main distribution channel is through dealers. mining of limestone. homogenization. tiles. Portland Pozzona cement and Sulphate resistant cement. own government warehouses. crushing of limestone. Target customers: Customers is the pillar of any business. grinding of raw materials. Partner Network: The Company in its partner network includes mainly dealers. OPC is mainly used in RPC works. Value Configuration: The Company uses cutting edge technologies like cement manufacturing process. mining with surface miner. Whereas PPC is used in Hydraulic structures. Core capabilities: The Company is the market leader with a market share of 28% in the South. The company main revenue is from Housing. It produces good quality cements. paving blocks. retailers and renowned business associates.Followed by transportation & handling which represents(20%).BUSINESS MODEL: Value Proposition: The company value proposition consists of manufacturing varieties of cements like Ordinary Portland cement. Cost Structure: The major cost elements of the total cost is energy(28% of the total cost). These process are carried out of its plant to speed up the production and manufacturing process. It has a strong distribution network over 10000 stocklists. . Infrastructure and commercial projects.

Portland pozzolona cement specification(clay ash based) SULPHATE RESISTANT CEMENT Sulphate resisting Portland cement(SRC) Sankar SRC INDIAN CEMENTS AND ITS COMPETITORS IN THE YEAR 2013 UltraTech Cement: UltraTech Cement Limited is India’s largest exporter of cement clinker based in Mumbai. Rassi super power pozzolona cement specification(fly cement ash based) IS 1489(PART 1) 1991. India. UltraTech cement holds the Super brand status. Sankar sakthi and Rassi gold Coramandel super power.Portland Blended BRANDS Coramandel King. one clinkerisation plant in UAE. The company's production facilities are spread across eleven integrated plants. and five terminals — four in India and one in Sri Lanka . fifteen grinding units. It is India's largest exporter of cement clinker. It has an annual capacity of 52 million tonnes. The company is division of Grasim Industries. one white cement plant. Sankar super power.OPC-43 AND OPC-33 Graded cement IS 1489(PART 1) 1991.PRODUCTS AND SERVICES: PRODUCT NAME ORDINARY PORTLAND CEMENT PORTLAND POZZOLON CEMENT CATEGORY OPC-53.

4 billion.8 per cent promoters` stake in the GACL for INR 21. The company has entered into a strategic partnership with Holcim. in January. Holcim had. The company is only Cement Company to get Super brand status in India . the second largest cement manufacturer in the world from 2006.Ambuja Cements: Ambuja Cements Limited. The stock price of company contributes in calculating BSE Sensex. It is the most popular cement brand in South India. Its registered office is called Cement House. manufactured in five production facilities spread over South India. The shares of the company are traded publicly on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). It is located on Maharishi Karve Road. a business group of South India. ACC Cements ACC Limited (Formerly the Associated Cement Companies Limited) one of the largest producers of cement in India. The main product of the company is Portland cement. formerly known as Gujarat Ambuja Cement Limited their principaactivity is to manufacture and market cement and clinker for both domestic and export markets.The management control of company was taken over by Swiss cement major Holcim in 2004. Mumbai. It is headquartered at Chennai. On 1 September 2006 the name of The Associated Cement Companies Limited was changed to ACC Limited.0 MTPA. bought a 14. The company is the fifth largest cement producer in India. Madras Cements ltd Madras Cements Ltd is the main company of the Ramco Group. with a current total production capacity of 13.

In 1997 India cements acquires Aruna Sugars Finance Ltd. Installed capacity 1. Installed capacity 0. In 1999 India Cements acquires Cement Plant of Shri Vishnu Cement Ltd. In 1991 India Cements ventures into Shipping. In 1998 India cements acquires Raasi Cement Ltd. In 2001 Group's overall capacity reaches 9 million tonnes.Renamed as India Cements Capital & Finance Ltd.In 1997 India Cements acquires Cement Plant of Visaka Cement Industry Ltd... at Tandur. In 1994 ISO 9002 Certification for Sankarnagar plant.GROWTH OF INDIA CEMENTS SINCE INCEPTION In 1946 Incorporation of India Cements Limited. Installed capacity 1. In 1998 India Cements acquires Cement Corporation of India's Yerraguntla Cement Plant at Andhra Pradesh. In 1949 Commissioning of first Cement plant at Sankarnagar-Installed capacity 1 lac tonnes per annum. In 2005 The Company has successfully completed an equity issue in the international market during October .4 Million Tonnes.6 million tonnes per annum. Installed capacity 0.8 million tonnes. In 1995 Announces issue of 1:1 Bonus shares. In 1990 Acquisition of Coromandel Cement plant at Cuddapah-Installed Capacity rises to 2.9 Million Tonnes. Sets up a Shipping Division.. Ranga Reddy district of Andhra Pradesh.The India Cements Ltd. at Nalgonda District of Andhra Pradesh. at Nalgonda District of Andhra Pradesh. In 2001 India Cements divests its stake in Sri Vishnu Cement Limited. becomes the largest producer of Cement in South India.0 Million Tonnes.

9% in FY 12 which is expected to increase to 7.S. CHALLENGES AND GROWTH OPPORTUNITIES OF THE COMPANY The demand supply mismatch arising out of burst of new capacity additions (and not majorly out of lack of normal demand growth) has constricted the capacity utilization levels of the industry for the last two years in particular.T. 2012. In 2010 The Company’s cricket franchise “Chennai Super Kings” won Champions League T20 tournament on 26th September 2010. India has been able to achieve reasonable GDP growth of 6. It is therefore expected capacity utilization to gradually increase over the next 3 years with parity between supply and demand being restored by then. one of the Founders of the Company was released on 11th November. Company's attempts in the short run will be towards striking an optimum balance between volumes and profitability and achieve best results.5% to 8% in FY 13 is expected to translate into a demand growth of 8% to 10% over the next few years. . 2013 and arrived Tuticorin Port on May 25th.613. there are still pockets of high demand growth in certain regions of the country and the Company is already moving significant quantities of cement to the Eastern markets as far as Assam & Nepal to optimize capacity utilization. given the overall surplus.960 metric tonnes of Coal from the company’s mines in Indonesia sailed from Muara Satui Port. While this being the overall scenario.6% in FY 12. While demand for cement grew by 6.3226 per GDS. Given the resilient nature of the economy. It will go to meet the needs of our cement / power plants. there are already encouraging signs of a pick-up in demand with demand spurting by over 10% in the last quarter of FY 12. In 2008 The Company has successfully bid for the Chennai franchise of the DLF-IPL 20/20 Cricket Tournament – “Chennai Super Kings”.Narayanaswami.796 Global Depositary Shares (GDSs) at USD 4. (each GDS representing 2 underlying equity shares of Rs 10 each) and raised an amount of Rs 497 crores including a premium of Rs 446 crores. In 2008 The Company has revived its shipping business with the purchase of two ships (dry bulk carriers) with a total capacity of 79843 DWT. Indonesia on May 14th. In 2013 The First shipment of 41. 2013.2005 by issuing 25. In 2012 Commemorative Postage Stamp on the Birth Centenary of Sri.

The Company has already addressed this concern by putting a 48 MW thermal power plant at Sankarnagar to take care of the full requirements of power of all the cement plants and grinding unit in Tamil Nadu and this power plant has been commissioned towards the end of FY 12 and has started supplying power. Company uses rail mode for primary transportation. Distributors also store small quantity of cements to meet urgent demand. The ever rising cost of energy in the form of petroleum products will also have its impact on the power and transportation costs. Apart from selling distributors help company in marketing and sales promotion activities. Trucks are used for secondary transportation.The availability of power from the State Electricity Boards is another area of concern with acute shortages in power availability in Tamil Nadu and Andhra Pradesh. . Mining rights obtained in Indonesia should fructify with infrastructure of roads and bridges under completion to ensure timely coal supplies. CFA unloads the bags. Retailers take orders and deliver it to the end customers. stores and delivers it when orders are placed by the distributors. Availability of indigenous coal from the nationalized coal companies and the quality of supplies is another area of concern. The Company imports coal to meet its cement plants' requirements thereby adequately addressing the quantity. SUPPLY CHAIN IN INDIA CEMENTS Bags are loaded from the factory on wagons or trucks. This problem has however been mitigated to a large extent due to the coal linkages obtained during the last two years to cater to the requirements of the recent capacity expansions in Andhra Pradesh. which it is hoped to be neutralized by increasing the selling prices. quality and cost aspects.

Microsoft partner. Demand for cement is cyclic in nature. NEW SEGMENT OF INDIAN CEMENTS Coromandel Infotech India Limited  Coromandel Infotech India Limited is a new generation software services and solutions company with niche industry focus. committed to providing innovative IT solutions to the growing business needs of its customers. In 1999. has acquired the entire promoter holding of 53% in Indo Zinc Ltd. Since railway route is the cheapest mode of transportation. through its investment and financial services subsidiary ICL Financial Services Ltd (ICLFSL). And also cement plant of Visaka Cement Industry in1997. India Cements Ltd. Acquired Raasi cements and Cement Corporation of Indias Yerraguntla plant in 1998. MERGERS AND ACQUSITIONS      Acquisition of Coromandel cements plant at Cuddapah in 1990.    Cements have a useful shelf life of approximately 6 months. A fine balance is to be achieved between inventory cost and capacity utilization. finacle Infosys. availability of railway wagon is a big constraint in present scenario.LIMITATIONS OF SUPPLY CHAIN MANAGEMENT. As part of its strategy to become one of the major players with a pan India presence. BlueChip Indian MNCs and Leading Banks in India and abroad. And renamed as India Cements Capital & Finance Ltd. Customers also have a bias towards fresh cements forcing the manufacturers to predict accurate amount of inventory. Acquired Aruna Sugars Finance Ltd. that includes Fortune 500 companies. acquired Shri Vishnu Cements Ltd. Alliance partners are ORACLE. . hp etc.

Narayanaswami. Indonesia and Coromandel Minerals Pte. Singapore. It may be noted that higher cane availability during the season continued till April 2011 resulting in total crushing of 8. It was also intended that the institutions should serve the community in the areas where the factories are situated. a cause very much dear to the founders of ICL. VII. Yerraguntla and Dalavoi where the cement factories are located. with the object of establishing and running educational institutions like Polytechnics.28 Lakh Ts) during the year under review. VI. SUGAR MANUFACTURING Coromandel Sugars Ltd.. These institutions were primarily conceived of for the benefit of the children and dependents of the employees of ICL. IV. Aluminum production Chemicals Plastics Shipping Education Institutions Sugar Manufacturing Electrical company Subsidiaries – (Industrial Chemicals & Monomers Limited.The sugar recovery stood at 10. Trinetra Cement Limited. III. Technical High Schools and Higher & Lower Secondary Schools. Coromandel Minerals Resources. II. the Management of ICL. Chilamkur. Shri Sankaralinga Iyer and Shri T.50 lakh tonnes for the season 2010-11. ICL International Limited.) EDUCATIONAL ACTIVITIES OF THE INDIA CEMENTS LTD In order to further the cause of education.PT. ICL Securities Limited. VIII.84 Lakh Ts (5.MAJOR DIVERSIFICATION IN INDIA CEMENTS I. Colleges.S. . Trishul Concrete Products Limited. constituted an Educational Trust on 18th June 1958. Improved cane price paid to growers in the earlier season has motivated the growers to up the area under sugarcane plantation by over 60%. Sankaridurg.17% as was in previous year. Limited. has achieved record crushing of 7. V. The Company runs the following educational institutions at Sankarnagar. ICL Financial Services Limited.

During the year the Company has redeemed the first annual installment of redeemable cumulative participating / non-participating preference shares on the due dates.81 Crores (Provisional) against the previous year figure of Rs.44. The total revenue earned by the Company during the year was Rs. The Company also utilized the wind power generated by its wind farms of a total of 279 Lakh Units (315 Lakh units) and power from its Waste Heat Recovery System at Vishnupuram which accounted for 539 Lakh units (475 Lakh units). which was wheeled and used at the cement plants of your Company in TamilNadu. . The Company maintained its dividend pattern of 9% on equity shares besides declaring dividend at the respective coupon rates for the participating / non-participating preference share capital.42 Crores (Provisional) as against Rs.42 Crores.10. higher sugar cane availability with reasonable sugar recovery. ENERGY EFFICIENCY AND COST REDUCTION Despite the lower capacity utilization caused by lower demand in the market.8. the company was able to maintain the excellent performance achieved during the earlier years. COROMANDAL ELECTRIC COMPANY Due to additional availability of natural gas during the year. the Company was able to generate 205 Million units of power as compared to 170 million units in the previous year.64. Towards the end of the last quarter the Company's captive power plant of 48 MW at Sankarnagar has been commissioned.78 Crores in the previous year and net profit after tax was Rs.With expanded plant capacity of 3500 tonnes crushing per day (tcd) in place. sustained efforts made by your company resulted in marginal reduction in power consumption per Tn of cement and maintaining the fuel consumption/ Tn of clinker on par with the previous year. The ever increasing cost of fuel and increase in power tariff by State Electricity Boards imposed additional burden which could however be controlled through fuller utilization of the power from the Company's gas based power plant at Ramanathapuram and also from the low cost power availed from Andhra Pradesh Gas Power Corporation Limited (APGPCL) in Andhra Pradesh.

The Company has also implemented Total Productive Management (TPM) for productivity improvement in its plants at Sankarnagar. Chilamakur and Vishnupuram. Dalavoi. it is reasonably expected a 8% to 10% annual growth in cement demand over the next few years and an early restoration of parity between cement demand and supply which should augur well for the cement industry. CLEAN DEVELOPMENT MECHANISM (CDM) Waste Heat Recovery System at Vishnupuram continued to earn certified emission reductions as a CDM project. the Company obtained ISO 9001 certification for quality assurance for its Sankari Plant in addition to its already certified plants at Sankarnagar.5% in 2012-13 could well be achievable.DEVELOPMENT ACTIVITIES During the year. the clocking of a GDP growth of 7. Given all these positive factors. Chilamakur. Vishnupuram and Malkapur. The ISO certification for its Yerraguntla Cement Plant is in progress. With industrial growth exhibiting signs of a revival and given the Government's intention to boost agriculture development and give a fillip to infrastructural growth. OUTLOOK Economic experts are banking on the domestic market to sustain growth through a Government led initiative to boost private sector infrastructure investments. Both the Central and State Governments have plans to boost investments in housing for the lower income groups which could help drive cement demand together with proposed investments on roads and other infrastructural projects. . Yerraguntla. The recent proposals of the Reserve Bank of India in its Credit Policy to reduce Repo and Reverse Repo rates by 50 basis points is expected to soften housing loan interest rates thereby giving a fillip to demand for housing for the middle income sector. Dalavoi.

As North and West markets have been growing. the Company has reached a capacity of 14. the Company has also acquired two ships for transporting coal / other raw materials based on cost economics.05 million tonnes from 8. The overall number of employees at the end of the year under review was 3195 (3220).81 million tonnes in 2002. . HUMAN RESOURCES & INDUSTRIAL RELATIONS The industrial relations remained cordial throughout the year at all the units. The Company's strategy of optimizing the manpower strength has also been achieved through various voluntary retirement schemes over the years and is presently improving upon the skills of its workers for doing multi tasking. Training and multi task development skills are given prime importance. Based on the demand supply scenario in the next few years the Company also proposes to increase its presence in its dominant South market through further capacity creation at one of its existing location.VALUE ENHANCING STRATEGIES Through various upgrades / timely expansion at its locations. the Company is on the lookout for further growth opportunities available in that region. The Company also secured additional linkages of domestic coal for two of its Andhra Pradesh plants and in order to circumvent the volatility in the ocean freight. The second strategy of securing uninterrupted supply of power and fuel is also being achieved through installation of power plants and also through acquisition of coal mining rights in Indonesia. The Company has put in place a Management Team for infrastructure projects.

the cricket team of the Chennai cricket franchise owned by the company continues to add shareholder value with its outstandingly consistent performance.. Dhoni is also the vice-president of India Cements. was the brand ambassador for the franchise until the end of 2010 when his three-year contract expired. Besides winning the Champions League in 2010 whereby completing a Cup and League double. The Chennai-headquartered company bought a manufacturing unit in Rajasthan. B. vice-chairman and managing director of India Cements Ltd. It has also won the Fair Play Award for 2011 – third time in four years exemplifying the team’s underlying philosophy. India cements and CSK -franchise history India Cements. The Chennai franchise was sold to the India Cements for $91 million. N. by means of his position within the company. decided to expand into the north Indian markets of Rajasthan. Chandrasekhar is the Chief Selector of the team. India Cements acquired the rights to the franchise for 10 years. Bangalore and Hyderabad. Mahendra Singh Dhoni. Srinivasan. team has been crowned champions for the second year in succession in the just concluded IPL 2011.1700 Crores for Franchise rights is an indication of what brand valuation most successful franchise presently commands. He was also the President of the BCCI. making it the fourth most expensive team in the league behind Mumbai. is the de facto owner of the Chennai Super Kings. a household name in Tamil Nadu and Andhra Pradesh.ALLIANCES Chennai Super Kings Chennai Super Kings. The fact that the latest entrants to IPL 2011 have had to pay nearly Rs. Krishnamachari Srikkanth. Former Indian opener V. Gujarat and Madhya Pradesh. The captain of the Chennai Super Kings is the current Indian skipper. former captain of the Indian cricket team and the former Chairman of the National Selection Committee. .

would not exceed Rs 10-15." an analyst with a Mumbai-based broking firm said. . CSK is critical to ICL in marketing and branding terms." said brand expert Harish Bijoor. By IPL 4. The brand image for investors and other stakeholders will take a hit because the company's image with respect to corporate governance norms will be shaken. With a dealer network and an established customer base in place. we don't attribute much value to CSK while calculating the India Cements assets." he added.CAMPAINS  India Cements Limited launched its first Twenty20 cricket tournament for city schools to unearth talent and harness the youngsters' skills. the company is a well established player and the CSK link doesn’t make a difference. Given that revenue wise it's not even 10% of the mother company. "CSK made profits in the third season and has been increasingly profitable ever since. the most successful team in the league clocked revenues of around Rs 138-140 crore which went up to around Rs 150 crore by IPL 5. But now its branding may take a severe with the consumers or the end users and the branding for them won't be impacted because they would only deal with the product of the company. overall revenues may not take a big hit as southern markets still make up over 75 per cent of India Cements’ revenues. Impact -betting controversy hitting the 'Brand CSK' CSK officials had gone on record to talk about revenues ranging from Rs 140-150 crore just before IPL 6 kicked off. In fact. Even if sales do get impacted. CSK is estimated to have earned Rs 35 crore and Rs 45 crore in the first two IPL editions. India Cements officials have talked of 15-20% growth year by year for the past two years. "The team reportedly broke even in the first edition but lost money in IPL 2 because of the shift to South Africa. While financially it may not matter too much. "India Cements as a brand has two aspects -. The IPL team is more of a marketing exercise." The hit in terms of earnings per share. As far as the southern market is concerned. the controversy about IPL may not significantly impact its cement sales.

But more than anything else. Chart showing the fall of India cements markets after the scandal . the controversy is sure to hit CSK's sponsors. A brand would want to sponsor a player or a brand which has consumer goodwill and not such ill will. It could also affect sponsors as every sponsor today is worried about the IPL as investments here are deep.

How Chennai super kings brand helped Indian cements to extend its brand in North India? 3.00%) NSE: 46.00%) QUESTIONS: 1. How much will the betting controversy surrounding Chennai Super Kings cost its owner India Cements? 4.20 (0.05 (0. How to get back the local shield? .India Cements Limited BSE: 46. Is CSK critical to India Cements’ finances? 2.

70. .3 crore).4 per cent at Rs 41 crore. CSK makes around Rs 25-30crore every year which is not big money for a company of ICL's size. marketing. the contribution was 4. at South India's largest cement maker that owns the IPL team captained by M S Dhoni." said Rakesh Singh. in perhaps the best example for utilizing a brand's association with cricket's most valuable property. joint president. The stock has fallen 17 per cent to Rs 68. V Srinivasan. income from the Indian Premier League franchise contributed just 3. building on the equity around the cricket team.Analysis: Financial Aspects Poor results in the March 2013 quarter and the controversy surrounding the arrest of Gurunath Meiyappan have seen the stock of India Cements correct sharply over the last week. How India Cements leveraged its alliance with CSK India Cements is riding on the popularity of Indian Premier League champions Chennai Super Kings to enter new markets at a furious pace. To the company’s full year revenue for 2011-12 (Rs 4. At the EBIT (earnings before interest and tax) level. ICL picked up the CSK franchise for $91million but the yearly pay is only $9million and so far they must have paid around $54million. it'll have some impact on the future earnings per share of India Cements. said: "If CSK goes off the league. CSK isn't a big financial component of India Cements. India Cements recently roped in more than 500 dealers in Gujarat by offering free tickets for Chennai Super King matches and a visit to the Tirupati Balaji temple for 'darshan'. "India Cements is exploring ways to harness the huge potential offered by Chennai Super Kings. It plans to sell close to one million tones of cement a year in North Indian markets such as Gujarat. research analyst with Mumbai-based broking firm Angel Broking. Madhya Pradesh and Rajasthan.2 per cent (Rs 137.203 crore). he said.

.5 million tonne capacity plant goes on stream in June." he said. The company is already dispatching 10. Ahmedabad. Besides giving away free tickets and Tirupur 'darshan'." Mr Singh said. The 1.000 tonnes of cement per month to the Gujarat market. he said. Mr Singh remembers having trouble explaining about his company to friends and relatives in his hometown Varanasi in those days. Baroda and Surat have yielded good results.Till three years ago. The company is now working on the strengths of Chennai Super Kings to help attract buyers to its cement brands. Now. India Cements entered Madhya Pradesh in the last fortnight. Madhya Pradesh and Rajasthan. everybody knows India Cements as the owners of Chennai Super Kings (CSK). India Cements was an unknown name in most of North Indian markets dominated by companies such as Holcim and Grasim. India Cements also made Indian cricket captain Mahendra Singh Dhoni meet its dealers Nagpur and Ahmedabad along with company director Rupa Gurunath. "We are doing all promotions around CSK and the brand power is being tested for the first time in the north. Merchandising also offers a huge potential including in overseas markets like the US and Singapore. Andhra Pradesh and Karnataka markets too are reaping the benefits. where CSK has a good support base. "CSK is one brand that has catapulted ICL into a different league. It plans to sell more than 60% of production from its first North Indian plant coming up in Rajasthan in Gujarat.

High fineness . Plant locations provide easy access to markets c. chloride and sulphate attack.suited for plastering and finishing works. . Ports provide access to international markets and fuel. Fly ash sourced from thermal plants nearby. a. Adequate limestone reserves at all plant locations b. Proximity to ports provides easy access to imported coal. Access to raw material a.     Best suited for high performance concrete.protects from corrosion. RARE: Continuous focus on efficiencies and captive power and coal to lead to improve EBITDA. Sankar Super Power and Raasi Super Power are the premium blended cements from THE INDIA CEMENTS LIMITED. 3. 6 to 9 plants located in proximity to deficit markets of Tamil Nadu and Kerala b. Low heat of hydration . Plants are strategically located 2. c. COSTLY TO IMITATE: Coromandel Super Power. High durability concrete . Salient features:   Strength increases as time passes. it ensures a durable structure that lasts for generations.  Ideal cement for resisting aggressive environments like chemical. It is produced by inter-grinding of OPC clinker along with gypsum and mineral admixtures.Ideal for mass concrete pours and machine foundations Equivalent to 53 grade cement. Proximity of markets to principal markets and ports. coastal attack and extreme temperature. Dedicated to the end user after passing through stringent tests at our R&D laboratory.VRIO FRAMEWORK VALUABLE: 1.

for concrete M-20 and above Grades a saving of 8 to 10% of cement may be achieved with the use of above mentioned 53 Grade OPC. the use of 53 Grade OPC is found very useful.ORGANISED TO CAPTURE VALUE: Coromandel King. As per BIS requirements the minimum 28 days compressive strength of 53 Grade OPC should not be less than 53 Mpa. to meet the needs of the consumer for high strength concrete. 53 Grade OPC produces higher-Grade concrete at very economical cement content. In concrete mix design. For certain specialized works such as pressurized concrete and certain items of precast concrete requiring consistently high strength concrete. PORTERS FIVE FORCE ANALYSIS . Sankar Sakthi and Raasi Gold are high strength cements.

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