Thesis - SK Washim Raja

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A PROJECT REPORT
ON

ENTITLED AS
Specialized Marketing Project on feasibility -Acceptance Study of
Branded Aggregates & Construction Materials in South Bengal
clusters

PRESENTED
TO
Mr.Ranoj Mukherjee
Marketing Intelligence officer in charge
ACC limited, Sales Unit Asansol

By
Sk. Washim Raja.
IIPM, Kolkata.
BATCH: - PGP/SS/09-11/SA2.

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Declaration of the Internship program

I Sk Washim Raja, a bona fide student of IIPM; Kolkata. Regn. No. .........................
hereby declare that this Thesis project of Thesis trimester Specialized Marketing Project
on feasibility -Acceptance Study of Branded Aggregates & Construction Materials in South
Bengal clusters submitted by me to the Department of Thesis ,IIPM-Gurgaon and IIPM -
Kolkata in partial fulfillment of requirements of Post-Graduate Program in Planning and
Entrepreneurship from IIPM,Kolkata carried out by me under guidance of Mr. Ranoj
Mukherjee(Marketing intelligence officer in charge) of ACC cement Sales Unit Asansol. This
information provided here are true and correct to the best of my knowledge.

Signature :- ..
Institute Name: - IIPM, Kolkata
Place : - Kolkata.
Date :-

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Abstract

ACC Limited is Indias foremost manufacturer of cement and ready mix concrete with a
countrywide network of factories and marketing offices. Established in 1936, ACC has been a
pioneer and trend-setter in cement and concrete technology. ACCs brand name is synonymous
with cement and enjoys a high level of equity in the Indian market. Among the first companies in
India to include commitment to environment protection as a corporate objective, ACC has won
several prizes and accolades for environment friendly measures taken at its plants and mines.
The company has also been felicitated for its acts of good corporate citizenship Working with
ACC limited was great experience for me I have learnt a lot . I come to know about the cement
company and the new initiatives for launching new products. The feedback given to me on each
step of my work was really knowledgeable.
The project focuses on collecting information from many real estate companies , builders
,Dealers-retailers about the construction materials and also the production in ACC, Damodhar
plant, Purulia.

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CONTENTS

Chapter 1 (Introduction)
Problem definition /hypothesis /Research objectives.....
Literature related to the research (In Brief)
Scope of the thesis work
Justification for choosing a particular research proposal

Chapter 2 (Products and industry analysis)
Cement ,Aggregate & Sand
Cement Industry of India
Aggregate and sand industry poised for significant growth..

Chapter 3 (Company analysis { ACC } )
Company Details...
Vision and Values of the company...
Company profile.
Corporate profile
Heritage of the company
Board of Directors..
Products..
Financial in formations
Performance highlights
Cost as profits as a percentage of sales

Chapter 4 (Theoretical perspective)
Marketing Research...
SWOT Analysis...
BCG Matrix
Ansoff's Matrix
PEST Analysis ..
Porters Five forces Analysis..
Porters Generic Strategy Analysis
Market Segmentation, Targeting

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Chapter 5 (Analysis through site visit)
Methodology.......
Sampling plan......
Limitations..
Field work findings ....
Recommendations
Annexure..
Questionnaires for Dealers and retailers.
Questionnaires for Real estate & small construction companies.
Questionnaires for Individual housebuilders.

Bibliography..

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Problem definition /hypothesis /Research
objectives

Concept Selling for new product development that is such products ,like Branded
Aggregates and Branded sands are new in Indian Market.
Existing price structure of products like Aggregates, Sands . Its including all type costs
like labor cost , logistics cost and others.

To analyze the demand of the aggregates and sands if company launches the products .

Before launching to find out the optimum price structure.

To find the target segments for the new product.

Literature related to the research
(In Brief)

Improving and updating product lines is crucial for the success for any organization. Failure for an
organization to change could result in a decline in sales and with competitors racing ahead. The process of
NPD is crucial within an organization. Products go through the stages of their lifecycle and will
eventually have to be replaced .My research is based on Aggregate(stone chips) , sand industry. The idea
has been conceptualized by Aggregate Industries, a member of the Holcim Group, is an aggregates,
construction and building materials group, with its base in the United Kingdom. It was listed on the
London Stock Exchange until it was acquired by Holcim in 2005.
Launching of product Branded Aggregate or sand is a new concept. So before launching the following
aspects are very necessary :
Demand forecasting , Concept selling and New product development etc. For that my Thesis is based on
market research and concept selling on behalf of Pan India. Where ACC is going to launch new products
thats are Branded Aggregates ,Branded sands and others construction materials in Indian market .Where
Location of primary research is Kolkata and South-Bengal cluster .For that I have visited many Real
estate companies ,Civil Engineers , House Builders and Retailers.

Scope of the thesis work

The scope of thesis is mainly focused on the Market Research for a branded product introduction
in Eastern India for Aggregates , Sands and others construction materials
1) First time the concept of Branded Aggregates being tested in Eastern India.

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2) The feasibility study has been done with market survey with an unique concept of
launching.
3) Wide range of Aggregates / building materials being looked upon.

Justification for choosing a particular research
proposal

Introduction of a branded product in a large unorganized segment, is a challenge to any market
analyst with the learning and help of marketing strategy and business management tools .So this
research has its own uniqueness .This strategy has taken into account of the potential growth
prospect in eastern India in real estate market and the important role of the organized real estate
players are going to play. The real estate giants are facing quality problems in consistency of
inputs in construction material from the local suppliers , with this study it will possible to
identify the potential market and the necessary infrastructure to build and capture these market.

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CEMENT

Cement is a mixture of limestone, Clay, Silica and Gypsum. It is a fine powder which when
mixed with water sets to a hard mass as a result of hydration of the constituent compounds. It is
the most commonly used construction material. Cement is manufactured by burning a mixture of
limestone and Clay at high temperatures in a kiln, and then finely grinding the resulting clinker
along with Gypsum. The end product thus obtained is called Ordinary Portland Cement (OPC).

Different Types of Cement
There are different varieties of cement based on different compositions according to specific end
uses, namely Ordinary Portland Cement, Portland Pozolona Cement, Portland Blast Furnace Slag
Cement, White Cement and Specialized Cement. The basic difference lies in the percentage of
clinker used.

1. Ordinary Portland cement (OPC):
OPC, popularly known as grey cement, has 95% clinker and 5% of Gypsum and other materials.
It accounts for 70% of the total consumption. White cement is a variation of OPC and is used for
decorative purposes like rendering of walls, flooring etc. It contains a very low proportion of iron
oxide. Ordinary Portland cement is the most commonly used cement for a wide range of
applications. These applications cover dry-lean mixes, general-purpose ready-mixes, and even
high strength pre-cast and pre-stressed concrete.

2. Portland Pozolona Cement (PPC):
Portland pozzolana cement is Ordinary Portland Cement blended with pozzolanic materials
(power-station fly ash, burnt clays, ash from burnt plant material or Siliceous earths), either
together or separately. Portland clinker is ground with Gypsum and Pozzolanic materials which,
though they do not have cementing properties in themselves, combine chemically with Portland
cement in the presence of water to form extra strong cementing material which resists wet
cracking, thermal cracking and has a high degree of cohesion and workability in concrete. PPC
has 80% clinker, 15% pozolona and 5% gypsum and accounts for 18% of the total cement
consumption. It is cheaply manufactured because it uses fly ash/burnt clay/coal waste as the
main ingredient. It has a lower heat of hydration, which helps in preventing cracks where large
volumes are being cast.

3. Portland Slag Cement (PSC):
PBFSC consists of 45% clinker, 50% blast furnace slag and 5% Gypsum and accounts for 10%
of the total cement consumed. It has a heat of hydration even lower than PPC and is generally
used in construction of dams and similar massive constructions. Portland blast-furnace slag
cement contains up to 70 per cent of finely ground, granulated blast furnace slag, a nonmetallic
product consisting essentially of Silicates and Aluminum-silicates of Calcium. Slag brings with it
the advantage of the
energy invested in the slag making. Grinding slag for cement replacement takes only 25 per cent
of the energy needed to manufacture Portland cement. Using slag cement to replace a portion of

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Portland cement in a concrete mixture is a useful method to make concrete better and more
consistent. Portland blast-furnace slag cement has a lighter color, better concrete workability,
easier finish ability, higher compressive and
flexural strength, lower permeability, improved resistance to aggressive chemicals and more
consistent plastic and hardened consistency.

4. White Cement:
White Portland cement has essentially the same properties as gray Cement, except for color,
which is a very important quality control issue in the industry. It is manufactured using fuel oil
(instead of coal) and with Iron oxide content below 0.4% to ensure whiteness. Special cooling
technique is used. It is used to enhance aesthetic value, in tiles and for flooring. White cement is
much more expensive than grey cement.

5. Specialized Cement:
Oil well Cement: is made from clinker with special additives to prevent any porosity.
Rapid Hardening Portland cement: It is similar to OPC, except that it is ground much finer,
so that on casting, the compressible strength increases rapidly.
Water Proof Cement: OPC, with small portion of calcium stearate or non-saponifibale oil to
impart waterproofing properties.

-:The layout of cement plant:-

Map Key:-
00:- Limestone Quarry
&crushing plant.
01 :-Lime stone stockpile.
02:-Additive hopper.
03:-Additive storage.
04:-Raw mill building.
05:-Blending & storage
silo
06:-Pre heater.
07:- Gas conditioning tower
08:-KLIN
09:- Cooler.
10: - Deep bucket
conveyor
11:- Clinker storage
12:- Gypsum storage
13:- Coal mill building.
14:- Cement mill & Bag
house
15:-Cement storage silo
16:-Packing & Dispatch
17:- Control room.

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Aggregate
Construction aggregate, or simply "aggregate", is a broad category of coarse particulate material
used in construction, including sand, gravel, crushed stone, slag, recycled concrete and
geosynthetic aggregates. Aggregates are the most mined material in the world. Aggregates are a
component of composite materials such as concrete and asphalt concrete; the aggregate serves as
reinforcement to add strength to the overall composite material. Due to the relatively high
hydraulic conductivity value as compared to most soils, aggregates are widely used in drainage
applications such as foundation and French drains, septic drain fields, retaining wall drains, and
road side edge drains. Aggregates are also used as base material under foundations, roads, and
railroads. In other words, aggregates are used as a stable foundation or road/rail base with
predictable, uniform properties (e.g. to help prevent differential settling under the road or
building), or as a low-cost extender that binds with more expensive cement or asphalt to form
concrete.

Preferred bitumenous aggregate sizes for road construction are given in EN 13043 as d/D (where
the range shows the smallest and largest square mesh grating that the particles can pass). The
same classification sizing is used for larger armour stone sizes in EN 13383, EN 12620 for
concrete aggregate, EN 13242 for base layers of road construction and EN 13450 for railway
ballast.
The American Society for Testing and Materials publishes an exhaustive listing of specifications
for various construction aggregate products, which, by their individual design, are suitable for
specific construction purposes. These products include specific types of coarse and fine
aggregate designed for such uses as additives to asphalt and concrete mixes, as well as other
construction uses. State transportation departments further refine aggregate material
specifications in order to tailor aggregate use to the needs and available supply in their particular
locations.

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Modern production
The advent of modern blasting methods enabled the development of quarries, which are now
used throughout the world, wherever competent bedrock deposits of aggregate quality exist. In
many places, good limestone, granite, marble or other quality stone bedrock deposits do not
exist. In these areas, natural sand and gravel are mined for use as aggregate. Where neither stone,
nor sand and gravel, are available, construction demand is usually satisfied by shipping in
aggregate by rail, barge or truck. Additionally, demand for aggregates can be partially satisfied
through the use of slag and recycled concrete. However, the available tonnages and lesser quality
of these materials prevent them from being a viable replacement for mined aggregates on a large
scale.

Sand
Sand is a naturally occurring granular material composed of finely divided rock and mineral
particles. The composition of sand is highly variable, depending on the local rock sources and
conditions, but the most common constituent of sand in inland continental settings and non-
tropical coastal settings is silica (silicon dioxide, or SiO
2
), usually in the form of quartz.
In terms of particle size as used by geologists, sand particles range in diameter from 0.0625 mm
(or 16 mm, or 62.5 m) to 2 mm. An individual particle in this range size is termed a sand
grain. The next smallest size class above sand is gravel, with particles ranging from 2 mm up to
64 mm. The next smallest size class is silt: particles smaller than 0.0625 mm down to 0.004 mm
in diameter. The size specification between sand and gravel has remained constant for more than
a century, but particle diameters as small as 0.02 mm were considered sand under the Albert
Atterberg standard in use during the early 20th century. A 1953 engineering standard published
by the American Association of State Highway and Transportation Officials set the minimum

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sand size at 0.074 mm. A 1938 specification of the United States Department of Agriculture was
0.05 mm. Sand feels gritty when rubbed between the fingers (silt, by comparison, feels like
flour).

ISO 14688 grades sands as fine, medium and coarse with ranges 0.063 mm to 0.2 mm to
0.63 mm to 2.0 mm. In the United States, sand is commonly divided into five sub-categories
based on size: very fine sand (16 mm diameter), fine sand ( mm mm), medium sand
( mm mm), coarse sand ( mm 1 mm), and very coarse sand (1 mm 2 mm). These
sizes are based on the Krumbein phi scale, where size in = -log base 2 of size in mm. On this
scale, for sand the value of varies from 1 to +4, with the divisions between sub-categories at
whole numbers.

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Uses of sands in concrete production :-
Concrete is a composite construction material, composed of cement (commonly Portland
cement) and other cementitious materials such as fly ash and slag cement, aggregate (generally a
coarse aggregate made of gravel or crushed rocks such as limestone, or granite, plus a fine
aggregate such as sand), water and chemical admixtures.
The word concrete comes from the Latin word "concretus" (meaning compact or condensed), the
perfect passive participle of "concrescere", from "con-" (together) and "crescere" (to grow).
Concrete solidifies and hardens after mixing with water and placement due to a chemical process
known as hydration. The water reacts with the cement, which bonds the other components
together, eventually creating a robust stone-like material. Concrete is used to make pavements,
pipe, architectural structures, foundations, motorways/roads, bridges/overpasses, parking
structures, brick/block walls, footings for gates, fences and poles and even boats.

Concrete is used more than any other man-made material in the world. As of 2006, about 7.5
billion cubic meters of concrete are made each yearmore than one cubic meter for every
person on Earth.
Concrete powers a US$35 billion industry, employing more than two million workers in the
United States alone.
[citation needed]
More than 55,000 miles (89,000 km) of highways in the United
States are paved with this material. Reinforced concrete, prestressed concrete and precast
concrete are the most widely used types of concrete functional extensions in modern days.

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Cement Industry of India
India is the second largest producer of cement on the globe after China. In total, India
manufactures 251.2 Million Tones of cement per year. The cement industry in India has received
a great impetus from a number of infrastructure projects taken up by the Government of India
like road networks and housing facilities. While the Indian cement industry enjoys a phenomenal
phase of growth, experts reveal that it is poised towards a highly prosperous future over the very
recent years. Estimates state that the production in the sector will touch 262.61 MT in FY12. The
cement industry in the subcontinent is dominated by around 20 companies. These major players
alone account for about 70 percent of the total volume of cement produced in India. In the year
2009 alone, the Indian cement industry manufactured a total volume of 231 MT.
History of cement Production in India
The history of the cement manufacturing in India can be traced back to 1889 when a private firm
in Kolkata began manufacturing cement from Argillaceous. However, only in 1900s, the cement
industry took an organized shape. In the year 1914, India Cement Company Ltd started cement
production in Porbandar with an output of 10,000 tons and a production of 1000 installed
capacity. The First World War gave the initial momentum to the cement industry in India and the
segment demonstrated a geometric growth in terms of installed capacity, number of
manufacturing units and the volume output. Experts term this as the nascent stage in the history
of Indian cement industry. The Concrete Association of India was established in the year 1926 to
create awareness among the public with respect to the utility of cement in addition to promoting
cement consumption.
1956 saw the introduction of price and distribution control system that regulated the cement
industry in India which was meant to ensure the fair price model for the benefit of both
consumers and the manufacturers of cement. Later in the year 1977, the government of India
authorized the emerging as well as the existing manufacturing units to place an increased price
tag for their cement and associated products. Two years after this, the government brought in a
three-tier pricing system featuring different pricing regulators on cement manufactured in high,
medium and low cost cement plants.
In every country, the cement industry plays a major role in deciding the growth. From the
beginning, the cement industry in India was totally under the supervision and control by the
government. The scenario changed to a great extent following the economic reforms. However,
one cannot rule out the interference of the government in regulating the pricing. Though the
country enjoys the credit of being the second largest manufacturer of cement in the world, it falls
very low per capita consumption of cement estimated at 125 kg. This is largely due to the fact
that the poor rural people in the country who predominantly live in mud huts cannot afford to
buy cement. On the other hand, the demand and supply of cement has undergone a phenomenal
growth in India. On the whole, the fact that India is a fast developing nation presents an
enormous scope for the development of cement industry.

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Production and Growth of cement industry in India
Domestic demand is one of the chief reasons for the rapid growth of cement manufacturing in
India. One can say that the domestic demand for the commodity has in fact clearly overtaken the
rate of economic growth in the country. It is estimated that the consumption of cement in the
country is bound to rise more than 22% within the next two years. In terms of cement
consumption, Maharashtra State leads the list with 12.18%, followed by Uttar Pradesh, whereas
in terms of production, the State of Andhra Pradesh leads the table reporting 14.72% of
production. The second place in the manufacturing is bagged by Rajasthan.
During October 2009, the country produced a total volume of 12.37 MT compared to a
manufacturing of 11.61 MT recorded in the same month during the previous year. The cement
manufacturing units are also motivated to take up their production rate owing to the rapidly
increasing demand in the market. Most encouragingly, the cement companies witnessed a net
profit growth rate of 85%. This huge success has further encouraged the firms in India to account
for about 8% of Indias economic development. Some of the regions where major clusters of
cement industries located in India are Satna (Madhya Pradesh), Yerranguntla (Andhra Pradesh),
Chandrapur (Maharashtra), Bilaspur (Chattisgarh), Gulbarga (Karnataka), Nalgonda (Andhra
Pradesh), and Chandoria (Rajasthan).
Technology Up-gradation
At present, the cement industry in the country is undergoing a technological change on account
of up gradation and assimilation witnessed in the sector. Presently, not less than 93% of the total
capacity is wholly based on manufacturing under the modern dry process, which is deemed more
environment-friendly, while the remaining rest 7% employs old wet and semi-dry process
technology. There is also an enormous scope of waste heat recovery in the cement manufacturing
plants that will give way to reduction in the levels of emission and consequently contribute to
environment-friendly practices.
The recent up gradation of technology across the cement industry segment has helped the
industry to enormously conserve fuel and energy and make a huge saving on materials. The
cement industry in India has developed its technical capabilities to produce a range of cement
types including Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland
Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid HardeningPortland Cement,
Sulphate Resisting Portland Cement and White Cement.
Major Players in Indian Cement Industry
A number of successful companies are leading the cement production in the country. However,
about 20 big firms alone account for over 70% of the total cement production in the nation. The
total installed capacity of cement in the country is found distributed over 129 plants, which are
owned by 54 major companies functioning from the breadths and lengths of the nation. The
major players in the cement industry in India include ACC, Gujarat Ambuja, Ultratech, Grasim,
India Cements, jaypee Group, JK Group, Century, Madras Cements and Birla Corp.

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Future Ahead of Indian Cement Industry
The annual demand for cement in India is consistently growing at 8-10%. NCAER has estimated
after an extensive study that the demand for cement in the country is expected to increase to
244.82 million tonnes by 2012. At the same time, the demand will be at 311.37 million tonnes if
the projections of the road and housing segments are met in reality. However, the realization of
this capacity might get delayed on account of delay in equipment delivery and construction of
plants caused by heavy pending orders in the books of suppliers. The crude oil prices have
pronounced a heavy impact on the profits made by cement manufacturers. Once the economic
growth passes on this burden to the consumers, this situation will be eased at the
manufacturers end. The government has taken measures to increase the availability of
indigenous coal for cement manufacturers to bring down production costs.
Developments in the domestic environment and a large number of infrastructure projects have
created an unforeseen demand for cement consumption in India, which is bound to increase
manifold over the coming years. While concrete steps are being taken to bring down, costs, the
cement industry is heading towards a very bright future in India.

.
Aggregate and sand industry poised for
significant growth
South Africa is experiencing one of its best economic periods in many decades and the medium-
term outlook for the aggregate and sand industry remains positive, with prospects for con- tinued
growth supporting new investment in production capacity. The aggregate and sand industry has
experienced fluctuating market conditions on a cyclical basis for a number of years. The
uncertainty in the industry brought about from recent past slumps (1992 to 1994 and 1999 to
2002), coupled to an uncertain and inconsistently applied regulatory environment, has resulted in
the limitation of investment in the sector.

This is according to an Industry Position Paper on Sustainable Deve-lopment compiled by the
Aggregate and Sand Producers Association of South Africa (Aspasa). But a renewed confidence
in South Africa and the rapid growth in demand during 2004 have, repor-tedly, given rise to
some encouraging capitalisation and resultant increased capacity and product quality.

Aspasa director Nico Pienaar says that numerous new projects, such as the Gautrain, the 2010
soccer World Cup and other government infrastructure developments, will continue to have a
positive effect on the industry for many years to come. It is, however, important that the
infrastructural growth is supported by a responsible, quality-driven, economically-stable and
sustainable aggregate and sand industry, he notes. Pienaar says that Aspasa, which represents the

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majority of the formal quarry companies in South Africa, is committed to the promotion of
sustainable development, through balancing economic growth, environmental equilibrium and
progressive performance.

Aggregate industry
It is a legal requirement to declare production volumes to the Depart-ment of Minerals and
Energy (DME) and Pienaar reports that Aspasa estimates that the DME underestimated the total
aggregate market.

The formal aggregate and sand producers, including all Aspasa members, declared production
volumes which confirm a significant recovery to 44,8-million tons in 2004 from a 24-year low
of 27,3-million tons in 1993. Pienaar says that the DME estimates that the declared volumes
constitute about 75% of the total South African aggregate market.

Based on cement consumption figures and established conversion ratios, we consider it to be an
underestimation, he says, explaining that the association estimates the total South African
aggregate market, both formal and informal, in 2004 to be 90-million tons. The association also
calculates that the informal aggregate and sand sector volumes, comprising mobile operators
producing from licensed borrow pits, small-scale miners and illegal miners, to be
underestimated.

South Africas gross domestic product (GDP) has to grow at more than 5% a year in order for
housing, employment and poverty allevi-ation targets to be met. To achieve these targets, gross
domestic product fixed investment (GDPFI) must mirror the required GDP growth. Due to the
current housing and infrastructure backlog, the aggregate industry, as a supplier to the
construction and building industries, is expected to grow faster than both GDPFI and GDP,
Pienaar notes.

South African aggregate consumption still has significant room for growth. A comparison
between the per capita aggregate consumption between South Africa, the UK and the US shows
that South Africa is using only 2 000 kg/capita, while the UK uses 5 000 kg/capita and the US 10
000 kg/capita. There is significant potential for future industry growth in South Africa, he
points out. The official market volumes indicate that revenue for the formal sector in 2004 was
R1,8-billion, but Aspasa estimated that it should be in the order of R3,8-billion, based on the 90-
million tons the association claims the market value to be. Pienaar reports that the combined
revenues of the limestone industry and the aggregate industry estimated at R6-billion is the
fifth-biggest revenue generator, behind gold, platinum-group metals, diamonds and coal.
Alongside iron-ore, it is a greater generator of revenue in the South African economy than
nickel, chromium, copper and manganese, he says.

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Looking forward
Aspasa believes that the formal and informal aggregate sectors both have the potential to grow in
the medium term. However, to achieve the growth requires improved cooperation between
industry members and the authorities, meaningful across- the-industry coregulation and
increased capacity of the government to execute its responsibility in terms of legislation,
Pienaar points out. Through these and cooperation with the formal industry, joint initiatives can
be designed and introduced to assist illegal operators in the informal sector to legalise their
activities, he says.

Illegal operators, who do not comply with any law and leave behind degraded and
unrehabilitated environments, are one of the main challenges to the industry. Two forms of
illegal mining can be distinguished. Artisanal small mining (ASM) and blatant opportunism
generally executed by fairly sophisticated pit raiders who have access to earthmoving and mobile
crushing equipment and move in and out of the unauthorised areas, Pienaar reports. He says that
ASM is usually to sustain subsistence living and is not seen as malicious, but born out of
necessity, while opportunis-tic miners, by contrast, deliberately ignore the law and, through their
practice, earn profits at the expense of the greater community. Pienaar says that South Africa has
a good constitution and mining-specific legislation, but that it has to be properly enforced.
Aspasa recommends that the DME should improve the management of permitted reserves,
through adopting a holistic approach, which should consider all criteria supportive of a
financially healthy sustainable industry at minimum cost to the environment. Policing and
control of regulations should also be promoted. Aspasa has identified certain concerns, being the
lack of environmental compliance including dust, noise and vibration control, generally poor
health and safety conditions, lack of training and mentorship, poor pay and the exploitation and
the reported use of children in mining-related activities. Borrow pits, generally small excavations
located next to a road that is being upgraded and used to supply low-quality overburden and
roadbuilding aggregate, offers an acceptable alternative when an existing legally-licensed quarry
operation is not within an economic distance from a road upgrade or refurbishment. Pienaar
highlights that a rapidly-increasing number of borrow pits, most of which are not being
rehabilitated, indicates that the full environmental costs, such as rehabilitation and the loss of
land use associated with pits during their life, of these small-scale mines are not factored in to
their financial justification. Accordingly, Aspasa recommends that the official DME poli-cy
should be that the nearest and most competitive quarry must be used at the source of the material,
unless it is clear that it is commercially unfeasible. Pienaar concludes that a respon-sible
aggregate industry is a precursor to economic growth and thus sustainable development.

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Build with CONFIDENCE

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-:company Details:-

Company Name: ACC Ltd
Address: Cement House, 121, Maharishi Karve Road,
Mumbai - 400020
Phone No: (22) 66654321
Website: http://www.acclimited.com //
Rank: 58
Industry: Cement/Marble/ Ceramics/Stones
Company Type: India's Top 500
Total Turnover: 5000 +Crs. (approx.)
No. of Employees: 5001& above(approx.).
Group: ACC .Sector: Private Sector

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Vision of the company:-

Values of the company:-

Strength:-
Building strong and lasting relationships. Conducting everyday operations internally in true
team spirit. Acting responsibly with integrity and demonstrating strength of character.

Performance :-
Delivering on our promises to each other and to our stakeholders. Always ensuring
excellence. Working together and striving to delight customers with best solutions.

Passion :-
Caring, being dedicated, committed and passionate about everything we do, demonstrating
excellence in everything we do. We have learnt to take our core values seriously. Living our
values means displaying them in everything we do.Creating assurance in the brand ACC by
consistently
delivering on our promises through services and behaviour towards all stakeholders. Giving our
people pride, helping them see the bigger picture and understanding their impact on the
Companys success. Being accountable. By utilising financial resources in the most efficient way
we can. Being customer oriented which means winning in the market place through customer
insight. Demonstrating respect for the environment and for society and by displaying
responsibility and interdependence with the community we live in.

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Company profile

ACC's brand name is synonymous with cement and enjoys a high level of equity in the Indian
market. Our range of cements and blended cements is marketed through a network of 19 Sales
Units, 54 Area Offices, and 194 warehouses. This is backed by a countrywide network of over
9,000 dealers who, in turn, are assisted by their sub-dealers.
ACCs marketing; sales and distribution processes are industry standards. Although we take
immense pride in having supplied some of Indias most admired projects, ACC is essentially a
peoples brand of cement with more than 80 per cent of sales made through an extensive dealer
network that covers every state in India. Its customer base represents the masses of India -
individual homebuilders in small towns, rural and semi-urban India. ACC cement enjoys an
image of assuring consistency and of high quality backed by in-house research and expertise.
Complementing this is a unique customer services cell comprising qualified civil engineers, who
assist and advise customers with prior and post sales service. This service begins with selection
of type and grade of cement (where applicable) to troubleshooting and on-site assistance.
ACC manufactures the various kinds of Portland cement for general construction
and special applications. In addition to this, ACC offers two value added products
namely, Bulk Cement and Ready Mix Concrete.

Some specific customer-focused initiatives year include the following:

ACC Help Centers at several locations to help home builders Mobile touring vans to visit
construction sites to educate users and masons at site and provide certain specialized services
like supervision during slab casting on demand.
Ask ACC a Website for home-builders and small customers
Customer friendly booklets on all aspects of construction and homebuilding

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Films and educational literature designed for masons and students besides this, technical
books/booklets on cement, concrete and building construction and maintenance are regularly
made available for the benefit of our customers.

ACC Help Center
First launched in Bangalore, this center is the first of its kind in India, to provide assistance to
individual home-builders. The ACC Help Center provides basic information and guidance to
customers on construction practices on various home building-related procedures - such as
pre-construction worries on stamp duty, selection of architects and appropriate service providers,
estimating budgets. Issues from purchasing land, budgeting to choice of material and planning of
the construction process are elaborated, step-by-step. Tutorials, conveniently scheduled in the
evenings, guide the customer, through the relevant steps of the house construction process. The
center distributes specially designed booklets on each stage of building ones Dream House
These publications are available in English, Hindi and major regional languages. This is an
interactive website, designed primarily for the individual house builder and the small consumer.
The site provides downloads and online inputs on a host of topics like estimation, budgeting,
selecting architects and easy-to-build home-plans for different plot sizes.

Indian Concrete Journal
The Indian Concrete Journal, the countrys oldest civil engineering journal, continues to be
published by ACC. It reaches out to practicing and consulting engineers, architects, builders,
contractors and government departments. It aims to disseminate the latest information and
technological progress in civil and structural engineering, cement and concrete technologies,
construction methods and practices.

PROJECT ENGINEERING
Against the best in the world. ACC is the pioneer of the Indian cement industry with over 66
years of rich experience in prospecting for raw materials, setting up and managing cement plants
of different sizes, technologies and processes. This experience is shared by companies team of
talented Scientists, Engineers and Technocrats in meeting the needs of the cement industry in
India and in many other countries. ACC has a successful track record in modernizing old
technology based cement plants to improve their operational economy and also in the design &
engineering of new technology based cement plants. Companys project engineering consultancy
and project management expertise has been tested against the best in the world.

Services under one roof
Raw material evaluations and optimization
Feasibility Studies
Engineering Consultancy Services for green field / brown field cement plants
Upgradation & capacity enhancement of existing cement plants
Management and operation of cement plants
Technical training & skills development

Major achievements
ACCs project engineering consultancy team has successfully handled a diverse range of
assignments in different parts of the world from geological prospecting to management and

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operation of plants as well as modernizing and upgrading old cement plants and providing
technical training. We are fully equipped to service the needs of the global cement industry.
Companys project engineering
consultancy and project management expertise has been tested.

Some Significant Projects

Saudi Arabia
Operation and management of a cement plant of capacity 4 million TPA (tones
per annum) owned by Yanbu Cement Company, Saudi Arabia (YCC). This contract was first
awarded to us in 1979 amid stiff international competition. Since then, annual cement production
at the plant has always exceeded guaranteed targets. Project management services to YCC in
implementing their new cement manufacturing line of capacity 7000 TPD (tones per day).
Nigeria
Comprehensive engineering consultancy services to Dangote Industries Ltd., Nigeria for their
new green field cement plants of capacity 3 x 7000 TPD (tones per annum).
Sudan
Plant health assessment, de-bottlenecking, Operation and Management guidance to Atbara
Cement Plant, Sudan owned by Sudanese African Company, Saudi Arabia.
United Arab Emirates (UAE)
Engineering consultancy services to Blue Circle, UK for the 1 million TPA (tones per annum) at
Sharjah Cement Plant, Sharjah.

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CORPORATE PROFILE:-
ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's operations
are spread throughout the country with 16 modern cement factories, more than 40 Ready mix
concrete plants, 20 sales offices, and several zonal offices. It has a workforce of about 10,000
persons and a countrywide distribution network of over 9,000 dealers.
Since inception in 1936, the company has been a trendsetter and important benchmark for the
cement industry in many areas of cement and concrete technology. ACC has a unique track
record of innovative research, product development and specialized consultancy services. The
company's various manufacturing units are backed by a central technology support services
centre - the only one of its kind in the Indian cement industry.
ACC has rich experience in mining, being the largest user of limestone. As the largest cement
producer in India, it is one of the biggest customers of the domestic coal industry, of Indian
Railways, and a considerable user of the countrys road transport network services for inward
and outward movement of materials and products.
Heritage - A Corporate Saga

Companys has been an interesting story one that inspired a book. ACC was formed in 1936
when ten existing cement companies came together under one umbrella in a historic merger the
countrys first notable merger at a time when the term mergers and acquisitions was not even
coined. The history of ACC spans a wide canvas beginning with the lonely struggle of its pioneer
F E Dinshaw and other Indian entrepreneurs like him who founded the Indian cement industry.
Their efforts to face competition for survival in a small but aggressive market mingled with the
stirring of a countrys nationalist pride that touched all walks of life including trade, commerce
and business.

The first success came in a move towards cooperation in the countrys young cement industry
and culminated in the historic merger of ten companies to form a cement giant. These companies
belonged to four prominent business groups Tatas, Khataus, Killick Nixon and F E Dinshaw
groups. ACC was formally established on August 1, 1936. Sadly, F E Dinshaw, the man
recognized as the founder of ACC, died in January 1936. Just months before his dream could be
realized.

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F. E. Dinshaw the founder of ACC
ACC stands out as the most unique and successful merger in Indian business history, in which
the distinct identities of the constituent companies were melded into a new cohesive organization
one that has survived and retained its position of leadership in industry. In a sense, the
formation of ACC represents a quest for the synergy of good business practices, values and
shared objectives. The use of the plural in ACCs full name, The Associated Cement Companies
Limited, itself indicates the companys origins from a merger. Many years later, some
stockbrokers in the countrys leading stock exchanges still refer to this company simply as The
Merger.

ACC's First Board Meeting in 1936 at The Esplanade

The house of Tata was intimately associated with the heritage and history of ACC, right from its
formation in 1936 upto 2000. Between the years 1999 and 2000, the Tata group sold all 14.45
per cent of its shareholding in ACC in three stages to subsidiary companies of Gujarat Ambuja
Cements Ltd (GACL), who are now the largest single shareholder in ACC. This has enabled
ACC to enter into a strategic alliance with GACL, a company reputed for its brand image and
cost leadership in the cement industry.

Holcim - a new partnership

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A new association was forged between ACC and the Holcim group of Switzerland in 2005. In
January 2005, Holcim announced its plans to enter into a long-term strategic alliance with the
Ambuja Group by acquiring a majority stake in Ambuja Cements India Ltd. (ACIL), which at
the time held 13.8 per cent of the total equity shares in ACC. Holcim simultaneously announced
its bid to make an open offer to ACC shareholders, through Holdcem Cement Pvt Limited and
ACIL, to acquire a majority shareholding in ACC. An open offer was made by Holdcem Cement
Pvt. Limited along with Ambuja Cements India Ltd. (ACIL), following which the shareholding
of ACIL increased to 34.69 per cent of the Equity share capital of ACC. Consequently, ACIL has
filed declarations indicating their shareholding and declaring itself as a Promoter of ACC.
Holcim is the world leader in cement as well as being large suppliers of concrete, aggregates and
certain construction-related services. Holcim is also a respected name in information technology
and research and development. The group has its headquarters in Switzerland with worldwide
operations spread across more than 70 countries. Considering the formidable global presence of
Holcim and its excellent reputation, the Board of ACC has welcomed this new association.

ACCs Head Office Cement House, 121 Maharishi Karve Road, Mumbai.

ACCs registered office was first located at Esplanade House in South Mumbai, a graceful
edifice that still stands out in its neighborhood. The head office then shifted to its own premises
in Cement House shown here. The address of this stately building was then Number 1, Queens
Road, Church gate. An all-India competition in 1938 had invited leading architects of the time to
send in their designs of which this elegant design made by Ballardie Thompson & Mathews was
chosen as the winning entry. Work on its construction began in 1939 and was completed during
the War period. The building was occupied by the Royal Air Force and vacated only in 1946.

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PRODUCTS: - Assuring QUALITY & trust

ACCs brand name is synonymous with cement and concrete and going to launch branded
aggregates and branded sand. The trademark ACC on 50 kilogram bags of Ordinary Portland
Cements (43 and 53 grade), Blended cements (Fly ash and slag based) and some special purpose
cements offers customers an assurance of dependable and
Consistent quality.

ACC promotes the use of blended cements which are environment friendly and
acknowledged for their superior and unmatched durability as compared to ordinary
cements.
Mega construction projects obtain cement from ACC delivered in bulk tankers- a well
come change from the conventional cement bags.
ACC was first to introduce Ready Mix Concrete in India on a commercial basis. Thanks
to these achievements, a transit concrete mixer is now familiar sight in Indias major
cities.
As Indias economic development accelerates, ACC cement and concrete stand ready to
enable the construction industry to achieve speedy completion of large and infrastructure
projects.
New products to be launch : Aggregate and Sand.

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FINANCIALS

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PERSPECTIVES

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Marketing research

INTRODUCTION:-

The increasing complexity of business makes it very difficult for an entrepreneur to remain in
business and prosper in the highly competitive environment of business demands, entrepreneurial
flair and skills .It is very necessary for a marketer to interpret market requirement s, relate them
to available resources and assume responsibility of the enterprise. Above all the customer holds
the key position in all circumstances and is to be motivated to purchase the maximums of the
firms products and services.
A manufacturer, Retailer or Supplier of any kind of goods and services needs access to certain
kinds of information so as to be able to satisfy his customer s needs and wants .The information
may concern the target market, product /services, price, distribution and promotion of the
company as well as the competitors. Some of the basic question that need to be answered in the
context are :
What are the constituents of the market?
What does the market buy?
Why does the market buy?
Who are the participants to the business?
How does the market buy?
When does the market buy?
Where does the market buy?
Obtaining answers to many these questions requires contract with final consumers .A majority
of managers are separated from their consumers and from the information they need .Business
and other organization have no choice but to resort to marketing research to obtain the
information they need for decision making.

WHAT IS MARKET RESEARCH?

Market Research is the process that links the consumer to the marketer. Market Research has two
components --- Market & Research. A market is a place where there are buyers and sellers and
where goods and services are offered in exchange of monetary transaction. Marketing is the
social process by which individuals and groups obtain what they need and want through creating,
offering, and freely exchanging products and services of value with others. Philip Kotler has
given us the concept of Marketing Mix, which is a collection of 4Ps --- Product, Price,
Promotion and Physical Distribution.
Research is the process of careful investigation leading to the discovery and interpretation of
information. There are mainly two kinds of research --- Basic Research and Applied Research.
Basic Research is carried out to answer fundamental problems that intrigue mankind. Basic
Research may or may not have commercial implications. Applied Research is based on Basic
Research, and is carried out to seek answer to specific problems, that have commercial
implications.

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MARKETING RESEARCH Steps :-

There are nine basic steps in conducting Market Research as shown in the diagram below

Fig: Marketing Research steps

RESEARCH OBJECTIVE
RESEARCH DESIGN
SAMPLING PROCESS
DATA CAPTURING
INSTRUMENT
FIELDWORK /DATA
COLLECTION
DATA ANALYSIS
REPORT /
RECOMMENDATIONS
EDITING / CODING /
TABULATION

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RESEARCH DESIGN:-
Research Design is a framework that is used to collect and analyze data. Research Design can be
of several types: Descriptive, Exploratory or Experimental .Qualitative or Quantitative and
Primary or Secondary
1. Descriptive Research
This is also known as conclusive research. This is a formal research process that has a
planned structure. Descriptive research is carried out only when the problem or the objective
has been clearly defined. Here, mostly quantitative tools and close ended questionnaire is
used. The results obtained from descriptive research can be used for decision making.
2. Exploratory Research
Exploratory Research is carried out in situations where the problem or the objective is not
well defined and an exploration is required before a detailed research can be undertaken. This is
usually carried out with a smaller sample size. Mostly qualitative tools and open ended questions
are used for this research. The results of this research cannot be used for decision making and it
is usually followed by descriptive research. This is a very powerful research process where
discovery of new ideas or concept building is concerned.
3. Experimental Research
Experimental Research is a less used but much sophisticated form of Market Research.
Here, just like in a laboratory, we manipulate certain variables and observe changes in other
variables. The experiments can be done either with only one independent variable or with
multiple independent variables. This is used whenever a company wants to know the effect of
changing any marketing mix variable (independent variable) such as price, a specific promotion,
or type of distribution, even specific elements like shelf space, or colour or packaging, and so on.
4. Qualitative Research
Qualitative Research involves in-depth probe using non-structured questioning or observation. It
is the soft version of market research. It expresses and summarizes data qualitatively or non-
numerically. It is mostly used in exploratory research and is very powerful in providing insights
into marketing problems. However, as it is a complex process, it needs very experienced
professionals (read psycho-analysts) to execute the process and can be applied on a limited
number of respondents.
5. Quantitative Research
Quantitative Research is the hard version of market research. It deals with quantitative aspects
and is used more in the descriptive research process. It expresses and summarizes data
numerically. It involves structured questionnaires or observation process and can be applied on a
large number of respondents. However, its limitation is that it can do only limited probing as
compared to qualitative research.
6. Primary Research

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Primary Research is the research done with first hand data. The data collected is fresh,
contempory and relates to the objective and the subject of the research. It is expensive and time
consuming as compared to secondary research, but the accuracy and reliability factor is quite
high out here.
7. Secondary Research
Secondary Research is carried out with second hand data, i.e, data that has been collected for
some other purpose or research. It is less expensive and time consuming than primary research,
but the accuracy and reliability factor is questionable. Thus, primary data collected for one
particular research becomes secondary data for other research work.

RELATIONSHIP AMONG DIFFERENT TYPES OF RESEARCH

Fig:- Types of Market Research

Exploratory Research
Hypothesis Formulation
Descriptive Research
Secondary Data Primary Data
Qualitative Research
Quantitative Research
Observation Technique
Questionnaire Technique

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The Marketing Research Process

A marketing research project starts with an information need. It ends with an actionable report
or presentation or both. In between are various steps to ensure that the marketing research
project achieves what it set out to do.

A diagrammatic representation of the Marketing Research Process is shown in the figure below

Step wise:-
Information need felt
Define the Research
Objective
Design Research
Methodology
Tabulation and
Analysis
Plan and do
Primary Research
Plan and do
Secondary Research
Report writing and
presentation
Marketing Actions

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I MPLI CATI ON ON THESI S :
My thesis work is completely based on Market Research study ,I have done secondary research
through internet (Websites of various cement companies and other research data on ) and for
primary research I have done questionnaire survey to various Real-estate companies, Contactors
, House builders and dealers.
SWOT Analysis

A SWOT analysis is an analytical tool that can help analyze a business. "SWOT" stands for
strengths, weaknesses, opportunities, and threats. This type of analysis represents an effort to
examine the interaction between the particular characteristics of your business and the external
marketplace in which you compete.
The internal portion of a SWOT analysis looks at the individual strengths and weaknesses of
your specific business. Similarly, the external analysis looks at the opportunities presented by
the marketplace and the threats that you face in your chosen market.

Strengths

Every organization has some strength. In some cases this is obvious, for example, dominant
market shares. In other cases, it is a matter of perspective, for instance, a company is very small
and hence has the ability to move fast. It is important to note that companies that are in a bad
position also have strengths. Whether these strengths are adequate is an issue for analysis. A
strength could be:

your specialist marketing expertise.
a new, innovative product or service
location of your business
quality processes and procedures
state-of-the-art equipment
any other aspect of your business that adds value to your product or service

Weaknesses

Every organization also has some weakness. In some cases, this is obvious; say for example, a
stricter regulatory environment. In other cases, it is a matter of perspective, for example, a
company has 99% market share and is open to attack from every new player. It is important to
note that companies that are extremely competent in what they do, also have weaknesses. How
badly these weaknesses will affect the company is a matter of analysis. A weakness could be:
lack of marketing expertise
undifferentiated products and service (i.e. in relation to your competitors)

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location of your business
poor quality goods or services
damaged reputation
problems managing inventories
poorly motivated or untrained staff
inefficient or obsolete production methods

Opportunities

All organizations have some opportunities that they can gain from. These could range from
diversification to sale of operations. Identifying hidden opportunities is the mark of an astute
analyst. An opportunity could be:
A developing market such as the Internet.
Mergers, joint ventures or strategic alliances
moving into new market segments that offer improved profits
a new international market
a market vacated by an ineffective competitor

Threats

No organization is immune to threats. These could be internal, such as falling productivity. Or
they could be external, such as lower priced international competition. A threat could be:
a new competitor in your home market
price wars with competitors
a competitor has a new, innovative product or service
competitors have superior access to channels of distribution
taxation is introduced on your product or service.

Strengths:-

ACC Cement is still market leader in Indian cement market where market is perfectly
competitive .Companies like Lafarge , Ultra-tech ,Birla cements also growing in Indian
cement market apart from that various local cement companies also running well.

Holcim is the parent company of ACC where Holcim cement is the largest selling cement
brand world-wide. The products: branded cement and sand already launched by Holcim
in some countries and also running well. ACC is well known Indian cement brand and
Holcim also famous brand world-wide, so the brand value will help the company to get
good market response.

Weaknesses:-

The concept is new, so how much the concept will be successful thats uncertain.

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The local suppliers are selling the products in competitively cheap price ,ACC is going to
launch the products under its roof so , the product quality will be better besides the price
will be more. So , price and quality optimization will be a big challenge for the company.

Opportunities:-

For the products like branded aggregates or branded sands are new product line in Indian
market ,here ACC will face competition for the products only from Lafarge where
Lafarge is also going to launch the same ,apart from that local players are still dominating
the market of this product .

ACC Cement is known for its product quality ,not only cement the bag quality also very
good ,so for the quality perspective customer or company will definitely choose the
brand ACC.

After recession scenario of Indian real-estate & construction industry is quite good .Here
target customers will be the Big real-estate giants like DLF , Unitech , Simplex etc.
because the companies doesnt compromise with quality. After that if the pricing
structure would be good for consumers then ACC could cover the consumer market as
well.

Threats:-

As per my observation the logistics performance of ACC is not very good in eastern India
part. Before launching the product ; proper logistics distribution set-up could be helpful
for the company.
Local suppliers would be the main threat for the company but ACC also will face
competition from Lafarge , where Lafarge is also a famous MNC in world cement
industry.

BCG matrix method
The BCG matrix method is based on the product life cycle theory that can be used to determine what
priorities should be given in the product portfolio of a business unit. To ensure long-term value creation, a
company should have a portfolio of products that contains both high-growth products in need of cash inputs
and low-growth products that generate a lot of cash. It has 2 dimensions: market share and market
growth. The basic idea behind it is that the bigger the market share a product has or the faster the product's
market grows, the better it is for the company.
Placing products in the BCG matrix results in 4 categories in a portfolio of a company:
Cash Cow - a business unit that has a large market share in a mature, slow growing
industry. Cash cows require little investment and generate cash that can be used to invest
in other business units.

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Star - a business unit that has a large market share in a fast growing industry. Stars may
generate cash, but because the market is growing rapidly they require investment to
maintain their lead. If successful, a star will become a cash cow when its industry
matures.
Question Mark (or Problem Child) - a business unit that has a small market share in a
high growth market. These business units require resources to grow market share, but
whether they will succeed and become stars is unknown.
Dog - a business unit that has a small market share in a mature industry. A dog may not
require substantial cash, but it ties up capital that could better be deployed elsewhere.
Unless a dog has some other strategic purpose, it should be liquidated if there is little
prospect for it to gain market share.

Some limitations of the Boston Consulting Group Matrix include:
High market share is not the only success factor
Market growth is not the only indicator for attractiveness of a market
Sometimes Dogs can earn even more cash as Cash Cows

The products category is not new because sand and aggregates; these products are very basic
products for construction , only difference is super brand and local. Where Super brand means
superior quality ,competitive price. Being a market leader ,ACC already started contacts with
many real-estate companies and govt. and private projects .
So , we can say the position is : Its moving from question mark to star.

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Ansoff's Matrix - Planning for Growth
This well-known marketing tool was first published in the Harvard Business Review (1957) in an article
called 'Strategies for Diversification'. It is used by marketers who have objectives for growth. Ansoff's
matrix offers strategic choices to achieve the objectives. There are four main categories for selection.
Ansoff's Product/Market Matrix

Market Penetration
Here we market our existing products to our existing customers. This means increasing our
revenue by, for example, promoting the product, repositioning the brand, and so on. However,
the product is not altered and we do not seek any new customers.
Market Development
Here we market our existing product range in a new market. This means that the product remains
the same, but it is marketed to a new audience. Exporting the product, or marketing it in a new
region, are examples of market development.
Product Development
This is a new product to be marketed to our existing customers. Here we develop and innovate
new product offerings to replace existing ones. Such products are then marketed to our existing
customers. This often happens with the auto markets where existing models are updated or
replaced and then marketed to existing customers.
Diversification
This is where we market completely new products to new customers. There are two types of
diversification, namely related and unrelated diversification. Related diversification means that

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we remain in a market or industry with which we are familiar. For example, a soup manufacturer
diversifies into cake manufacture (i.e. the food industry). Unrelated diversification is where we
have no previous industry nor market experience. For example a soup manufacturer invests in
the rail business.
Ansoff's matrix is one of the most well know frameworks for deciding upon strategies for
growth.
Here the new product to be marketed to the existing customers of ACC , Industrial and
consumers both. Here ACC may take some initiatives regarding its product development like
packaging existing products it in new ways , Developing related products like beside fresh
aggregates ( 5mm-28mm size) others product related to aggregates and sand ;which products are
necessary for construction work ACC may develop for its customers.
PEST ANALYSIS
PEST analysis is very important that an organization considers its environment before
beginning the marketing process. In fact, environmental analysis should be continuous and feed
all aspects of planning. The organization's marketing environment is made up from: PEST
analysis stands for "Political, Economic, Social, and Technological analysis" and describes a
framework of macro-environmental factors used in environmental scanning. It is also referred to
as the STEP, STEEP or PESTLE analysis (Political, Economic, Socio-cultural, Technological,
Legal, Ethical).
It is a part of the external analysis when doing market research and gives a certain overview
of the different macro-environmental factors that the company has to take into consideration.
Political factors include areas such as tax policy, employment laws, environmental
regulations, trade restrictions and tariffs and political stability. The economic factors are the
economic growth, interest rates, exchange rates and inflation rate. Social factors often look at
the cultural aspects and include health consciousness, population growth rate, age distribution,
career attitudes and emphasis on safety. The technological factors also include ecological
and environmental aspects and can determine the barriers to entry, minimum efficient
production level and influence outsourcing decisions. It looks at elements such as R&D
activity, automation, technology incentives and the rate of technological change.
1. The internal environment e.g. staff (or internal customers), office technology, wages and
finance, etc.
2. The microenvironment e.g. our external customers, agents and distributors, suppliers, our
competitors,
etc.

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3. The macro-environment e.g. Political (and legal) forces, Economic forces, Socio
cultural forces, and Technological forces. These are known as PEST factors.
Political Factors
The political arena has a huge influence upon the regulation of businesses, and the spending
power of consumers and other businesses.
Economic Factors
Marketers need to consider the state of a trading economy in the short and long-terms. This is
especially true when planning for international marketing.
Sociocultural Factors
The social and cultural influences on business vary from country to country. It is very important that
such factors are considered
Technological Factors
Technology is vital for competitive advantage, and is a major driver of globalization
Political Factors : ACC has god relationship with many PSU and Govt. projects for its cement
products , so the goodwill of the company will be helpful for new product launching.
Economic Factors : After recession, the condition of real-estate sector improved very well, every
where construction development causes the demands of construction materials. So , apart from
cement its good time to launch branded construction materials.
Sociocultural Factors : Trend is changing , Indian consumers started purchasing branded
manufacturing products. Where Brand means promise of quality to consumers.
Technological Factors : Technology improves customer satisfaction , Branded company means
supreme technological outcomes. ACC purchased stone crashers from Germany apart from that
order delivery system will be far better than local suppliers.

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FIVE FORCES ANALYSIS
Analysing the environment - Five Forces Analysis :Five Forces Analysis helps the marketer to
contrast a competitive environment. It has similarities with other tools for environmental audit,
such as PEST analysis, but tends to focus on the single, stand alone, business or SBU (Strategic
Business Unit) rather than a single product or range of products. For example, Dell would
analyse the market for Business Computers i.e. one of its SBUs.
Five forces analysis looks at five key areas namely the threat of entry, the power of buyers, the
power of suppliers, the threat of substitutes, and competitive rivalry.
The threat of entry. :Economies of scale e.g. the benefits associated with bulk purchasing.
The high or low cost of entry e.g. how much will it cost for the latest technology?
Ease of access to distribution channels e.g. Do our competitors have the distribution
channels sewn up?
Cost advantages not related to the size of the company e.g. personal contacts or
knowledge that larger companies do not own or learning curve effects.
Will competitors retaliate?
Government action e.g. will new laws be introduced that will weaken our competitive
position?
How important is differentiation? e.g. The Champagne brand cannot be copied. This
desensitises the influence of the environment.
The power of buyers

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This is high where there a few, large players in a market e.g. the large grocery chains.
If there are a large number of undifferentiated, small suppliers e.g. small farming
businesses supplying the large grocery chains.
The cost of switching between suppliers is low e.g. from one fleet supplier of trucks to
another.
The power of suppliers
The power of suppliers tends to be a reversal of the power of buyers.
Where the switching costs are high e.g. Switching from one software supplier to another.
Power is high where the brand is powerful e.g. Cadillac, Pizza Hut, Microsoft.
There is a possibility of the supplier integrating forward e.g. Brewers buying bars.
Customers are fragmented (not in clusters) so that they have little bargaining power e.g.
Gas/Petrol stations in remote places.
The threat of substitutes
Where there is product-for-product substitution e.g. email for fax Where there is
substitution of need e.g. better toothpaste reduces the need for dentists.
Where there is generic substitution (competing for the currency in your pocket) e.g.
Video suppliers compete with travel companies.
We could always do without e.g. cigarettes.
Competitive Rivalry
This is most likely to be high where entry is likely; there is the threat of substitute
products, and suppliers and buyers in the market attempt to control. This is why it is
always seen in the center of the diagram.
The power of buyers :The major input is stone and crashing machines. The Price of big stones
determined by the government. To mitigate the high costs of power ACC have set up captive
crashing plants.
The power of suppliers :Retail sales constitute about 80 % of the total sales and the rest is
institutional sales for local suppliers of aggregates and sand. The retail buyers dont have any
bargaining power while the institutional buyers get a discount as they buy aggregates and sand
in bulk.
The threat of substitutes :There are no good substitutes for aggregates, and sand because there
are no alternative products of such products.
Competitive Rivalry:ACC will face competition from Lafarge for the same product ,apart from
that local suppliers in various regions also there.

52 | P a g e

The threat of entry : The high capital costs acts as a major entry barrier for the entry of new
players. The high freight costs make it difficult to import aggregates and sand. Such products
being a high volume low value commodity results in high freight costs, which makes
construction material industry imports economically unfeasible.
Generic Strategy: Types of Competitive
Advantage
Basically, strategy is about two things: deciding where you want your business to go, and
deciding how to get there. A more complete definition is based on competitive advantage, the
object of most corporate strategy:
Competitive advantage grows out of value a firm is able to create for its buyers that exceeds the
firm's cost of creating it. Value is what buyers are willing to pay, and superior value stems from
offering lower prices than competitors for equivalent benefits or providing unique benefits that
more than offset a higher price. There are two basic types of competitive advantage: cost
leadership and differentiation.
-- Michael Porter, Competitive Advantage, 1985, p.3
The figure below defines the choices of "generic strategy" a firm can follow. A firm's relative
position within an industry is given by its choice of competitive advantage (cost leadership vs.
differentiation) and its choice of competitive scope. Competitive scope distinguishes between
firms targeting broad industry segments and firms focusing on a narrow segment. Generic
strategies are useful because they characterize strategic positions at the simplest and broadest
level. Porter maintains that achieving competitive advantage requires a firm to make a choice
about the type and scope of its competitive advantage. There are different risks inherent in each
generic strategy, but being "all things to all people" is a sure recipe for mediocrity - getting
"stuck in the middle".
Porter's Generic Strategies (source: Porter, 1985, p.12)

COMPETITIVE ADVANTAGE
COMPETITIVE
SCOPE
Lower Cost Differentiation
Broad
Target
Narrow
Target
1. Cost Leadership 2. Differentiation
3A. Cost Focus 3B. Differentiation
Focus

53 | P a g e

What kind of target should have for a cement market leader and having support from world largest
cement brand ? Answer is, of course broad target .ACC will target both on industrials and consumers
sales. Right now ,the main competitor of ACC for the same products line would be Lafarge , apart from
that the local suppliers in every regions as well . So , according to me the Cost leadership will be the best
strategy for the company to grab the market before launching the same products by other big companies.
Market Segmentation, Targeting.

STP Marketing is one way to characterize the modern strategic marketing approach. STP
stands for Segmenting, Targeting, and Positioning. The idea is to use a more direct rifle
approach instead of an undirected shotgun approach:

1. Identify segmentation
variables and segment the
market.

2. Develop profiles of
resulting segments.
Market Targeting Market Positioning Market Segmentation
1. Evaluate the
attractiveness of
each segment.

2. Select the target
segment(s).
1. Identify possible
positioning concepts
for each target segment.

2. Select, develop, and communicate
the chosen positioning concept.

Additional Notes On Segmentation, Targeting And Positioning:
The following set of notes provides a brief outline some of the key ideas in this area.
Alternative approaches to marketing strategy:
Mass marketing: one product for all customers
Product-variety marketing: a variety of products for customers to choose from
Target marketing: targeted products for specific customer groups

Patterns of market segmentation:
Homogeneous preferences
Diffused preferences

54 | P a g e

Clustered preferences
Market segmentation procedure (one common approach) (Kotler, 1997):
1) Survey Stage: Exploratory interviews and focus groups, followed by questionnaires to
assess:
Attributes and their importance ratings
Brand awareness
Product-usage patterns
Attitudes toward the product category
Demographics, etc.
2) Analysis Stage:
Factor analysis applied to remove highly correlated variables.
Cluster analysis applied to create a specific number of maximally different
segments.
3) Profiling Stage: Each cluster is profiled in terms of its distinguishing attitudes, behavior,
Each cluster is a market segment.
Market targeting: 3 criteria for evaluating market segments:
Segment size and growth
Segment structural attractiveness (Porters 5 forces)
Company objectives and resources

Five patterns of target market selection (Abell) (p. 284):

I MPLI CATI ON ON THESI S :According to me full market coverage will the key plan for
the company , because the products are basically construction materials and there are no
substitutes of the products like aggregates or sand. Every-where and to every-body the products
are very important. So , before launching the same products by other companies ACC should
cover the market ,if the company could be able to manage well the products to customers then it
will be promoted well and also run with good will.

M
1
M
2
M
3
M
1
M
2
M
3
M
1
M
2
M
3
M
1
M
2
M
3
M
1
M
2
M
3
P
1
P
1
P
1
P
1
P
1
P
2
P
2
P
2
P
2
P
2
P
3
P
3
P
3
P
3
P
3
Single-segment
concentration
Single-segment
concentration
Market
specialization
Product
specialization
Full coverage
P = Product M = Market

55 | P a g e

56 | P a g e

Research Methodology

Methodology means how researchers explain. Nowadays methodological monism has
deliberately and consciously been substituted with methodological pluralism. However, the
method best suited for our research objective, due to the flexibility and promptness of response,
is a survey via personal interview, which is translated/ transformed into a set of filled-in
questionnaires. In this thesis, a random sample comprising 20 real estate companies ,32 dealers
and retailers and 27 individual builders were selected from the major towns in south-bengal to
meet the foregoing objectives and addressing the said problem

Secondary data It will be collected through internet, magazines, business journals and
newspapers.
Primary data Questionnaire survey to various Real-estate companies , Construction firms
,builders-promoters , Individuals.
Tool used Both primary and secondary research techniques including statistical chart for
analysis purpose.
Sample size - .79

-:DISTRIBUTION SYSTEM OF acc :-

ACC
DEALER
CARRY & FORWARDING
AGENT
Institutional
CUSTOMERs
SUBDEALER & RETAILER

CUSTOMER

57 | P a g e

Limitations:-
The major problem of the survey was that most of the respondents being very loyal to their
brands or suppliers didnt give exact answers .like they didnt talk much about what
problems they are facing, what are the different marketing schemes of the brand in which
they deal etc.

Once we got the questionnaire filled, I need to restart the conversation in a very generalized
way and talk about the local market conditions. Like who is the main dealer, which cement is
mostly sold in that area etc .From where they are getting Aggregates and Sand ,so this survey
demands a good piece of time while talking to the respondent.

Many of the dealers/retailers and builders refused to answer any question at all. So the actual
figures can be somewhat different from the one that we have found out.

Some of the respondents may have told their average monthly sale more than the actual.
Because all of them think that the monthly sale attached with the market image of their
shop.

I am working in a company parallel I have done market survey, so its difficult to manage
time.

58 | P a g e

QUESTIONNAIRE for RETAILERS

59 | P a g e

you supplying construction materials ?
Yesno., If yes , give details of the same ?
Cement
sand
aggregates
steel......
Bricks
anY others.
Cement ,company wise :-

Fig :Cement brands recommended by retailers( %)
From the above graph we can see UTCL , ACC ,Lafarge and Ambuja dominating respectively at
my research area.
Locations of cement plants and supply media of mentioned companies :-
ACC :- Madhukunda(W.B) , Chaibasa (JKND) = Rail and road transport.
Ultra-tech :- Durgapur = Rail and road transport
Ambuja :- Farakka = Rail and road transport
Konark :-Orissa = Rail transport.
Lafarge :- Mezia (W.B) = Rail and road transport.
Ramco :- South india
Birla gold :- MP
Birla samrat :- Durgapur (W.B)

Cement procurement location wise :-

Total Cement per month at 5 areas = 7510
7510 / 5 = 1502 ton per month .
22%
23%
13%
16%
2%
5%
1% 10%
1%
7%
Cement
ACC
Ultra Tech
Lafarge
Ambuja
Rashmi cement
Birla Samrat
Birla Gold
Konark
Ramco

60 | P a g e

SAND :-
Kolkata :- Tier A , B , C :- 1760 cft / month
Konnagar :- Tier A :- 3280 cft / month
Kharagpur :- Tier B & C :- 1800 cft / month
Durgapur :- 2100cft / month
Burdwan :- 2583cft / month

Bricks
Kolkata :- 42,000 pm
Konnagar :-30,000 pm
Kharagpur:-15625 pm
Durgapur:-32500 pm
Burdwan:- 37000 pm

What is the hinterland you are supplying to ?

KOLKATA :- Salt Lke , New Town , Kakur gachi , Maniktala ,PhulBagan ,
Mahisbathan , Central Kolkata , Ballygaunge area , Rash bihari , Garia hat .

KONNAGAR : - Konnagar town , Kanaipur , Nabagram , Naity road-Dankuni , Gobra
area.

KHARAGPUR :- Kharagpur town , Inda , Benia pukur , Thakur Chawk .

DURGAPUR :- Durgapur , Andal , Raniganj , Panagarah , Galsi , Rajbandh , Mankar .

BURDWAN :- Putsuri, Hatgobindopur, Burdwan , Panduah , Khanyan , Mogra ,
Bandel ,Shaktigarh , Memari , Samudragarh , Arambag .

61 | P a g e

From where to you procure the materials you sell
cement..
sand.
aggregates

KOLKATA -
Cement :- UTCL from Durgapur plant , Lafarge from Mezia plant ,ACC from Shalimar
Ware house , Cossipure
Sand :- Cossipore , Local syndicate , from Posta , from Damodhar river
Bricks :- Local suppliers , Basirhat
Aggregates :- Cossipore syndicate , Directly from Pakur , Chitpur rail rake ,Local syndicate
, Ballygaunge rake.

KHARAGPUR
Cement :- Ambuja direct from Shakrail plant ,Ultra tech from midnapore Ware house,
Kalaikunda rake point , Local godown.
Sand :- Kansai river , local syndicate , Damodhar river ,
Bricks :- Local suppliers.
Aggregates :-Local syndicate , Chandil , Ramhurat.

KONNAGAR :-
Cement :- ACC from Shalimar ware house , Ultra tech direct from Durgapur plant
,Local Godown
Sand :- Local syndicate , Illambazar , Damodhar river.
Bricks :-Local suppliers.
Aggregates :- Local syndicates, Dankuni ,Pachami birbhum

DURGAPUR :-
Cement :- Durgapur & Bankura Warehouse , from local dealer , Burdwan and Bankura
ware house ,Shalimar ware house , ACC directly from Madhukunda plant .
Sand :- Local supplier , Ajay river , Illambazar ,
Aggregates :- Rampurhat , Pachami-Birbhum , Local suppliers .

BURDWAN :-
Cement :- Burdwan and Bankura ware house , UTCL direct from plant ,Shalimar
Warehouse
Sand :-Local supplier , Damodhar river.
Aggregates :-Burdwan rake ,Pachami birbhum, Local suppliers.

62 | P a g e

In Aggregates which functions do you sell more ?
28mm..22mm.11mm5mm.

COMMENTS :-
The following graph is showing that retailers are selling 22mm aggregates more than
others sizes.

Fig :- Aggregates sales ,size wise

0
2
4
6
8
10
12
14
16
18
20
P
o
p
u
l
a
t
i
o
n

Type of aggregates
28mm
22mm
11mm
5mm

63 | P a g e

What is the frequency of your procurement and payment
terms ?
&
Are your supply policies and payment terms ?

COMMENTS :-

KOLKATA :-
No Credit, Weekly Payment , 7 days Credit, Weekly Payment , No Credit, Payment on
Delivery ,No advance cash , Payment done after received the materials, Advance
payments. Then full payments start after materials received, for cement and Steel
Dealership required and credit policy

KHARAGPUR :-
1 month Credit, Payment on Delivery , No Credit, Payment on Delivery , 1-2 weeks Credit,
Payment on Delivery.

Payment at the time of delivery, 1st supply charge then payments.

KONNAGAR :-
1-2 weeks Credit, Payment on Delivery

Payment at the time of delivery

DURGAPUR :-

7 days Credit, Payment on Delivery

Advance payments. Then full payments start after materials received , 2 to 3 days
advance payments, payment at the time of delivery ,

BURDWAN :-
Payment at the time of delivery ,

64 | P a g e

What is your order booking process/sources of
procuring Aggregates ?

COMMENTS :-
KOLKATA :- By phone or FAX to company No advance payments ,Payment given after
received the product, By phone or by direct visit to the suppliers, :- By phone or they meet with
us.
KHARAGPUR :-
By phone order , payment after received the materials. Direct visit, phone,

KONNAGAR :-
Phone to Mahajan or distributor . phone to mahajan or distributor at dankuni, direct and indirect
both from pachami and from distributor respectively

DURGAPUR :-
by phone to local truck owner .

BURDWAN :-
by phone to local truck owner.

65 | P a g e

What is the present price of this project ?

COMMENTS :-
The following graph showing the pricing structure of Cement and Aggregates in different
districts of south Bengal. Where Cement price is calculated as Rs.per Bag and Aggregate
price calculated as Price per 100 cft.

We can see far changing of the price of Aggregates but Cement price is mostly constant
for every areas. Because Cement market is perfectly competitive but Aggregates or sands
supplying by local suppliers. Thats why pricing structure fluctuates location wise.

Fig : present price ranges of cement and aggregates , area wise

0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
KOLKATA KHARAGPUR KONNAGAR
AGGREGATES
CEMENT

66 | P a g e

Is the fractions you order consistent ?

COMMENTS :-
There are many shapes of aggregates like 28mm ,22mm , 11mm and 5 mm .For the dhalai
purpose ,we generally use 11mm and 22mm .For the floor 11mm and 5mm aggregates use.
The following graph is showing the fractional part of order , suppose the ratio of order of
aggregates of a retailer is 3:2:2:1 of 28mm ,22mm, 11mm and 5mm aggregates respectively.
So , the graph is showing the order ratio is consistent of fluctuates , Here 79% said the order
is consistent and rest 21% said it depends.
This ratio is very important because its effect the whole aggregates supply chain from stone
crashing point at Pankur , Rampurhat ,chandil etc area to transporter of these product to
retailer home.

There are some different crashers are using for the aggregate crashing , ACC purchased some
different crashers from Germeny after analyzing the consistency ratio.

Fig :- Shapes of aggregates uses for construction. The fractions.

79%
21%
Yes
It depends

67 | P a g e

Can you sell a higher priced product by showing cost
benefit analysis to customers ?

COMMENTS :- We all know : CUSTOMER IS KING , besides we have to admit :
DEALER ARE THE PILLER OF ANY BUSINESS.

ACC is going to launch branded aggregates and branded sand pan-India basis.
The product quality will be of-course better than the local sand and aggregates besides
The price will be higher. So the success of business is totally depending on the concept
selling part. The main target segment will be the real-estate giants like DLF , Unitech
,Simplex and the other good real-estate companies as well because maximum of these
companies well known for its quality construction but for achieving business success
ACC have to concentrate on the medium level companies as well as lower level segments
because population of the population factor.
So , to implement efficient concept selling structure ACC need aggressive and proper
marketing and sales force by which they could build up proper distribution channel as
well as the right flow of concept selling through the network to customer.

Fig :- Can you sell a higher priced product by showing cost benefit analysis to
customers

35%
55%
10%
Yes
N/A
It depends

68 | P a g e

How is your procurement influenced by intermediaries
/ others syndicates?

COMMENTS :- Handing intermediaries or syndicates is a problematic part of business.
Syndicates is a group of people sheltered under any political party ,they collects money from
both side of distribution network that is from distributor and from dealer or retailer.
I have seen the domination of syndicates at Kolkata and konnagar area.
For that the sellers are bounded to rise the price of sand and aggregates to customer. So , the
domination of syndicates or intermediaries is threat for any business. But its a good news
that the power of syndicates is bounded at city area ,rural area is not affected too much.

Fig :- How is your procurement influenced by intermediaries / others syndicates

16%
84%
Yes
N/A

69 | P a g e

Do syndicates affect price or influence your
purchase decisions too ?

COMMENTS :- From the following graph 35 % respondent said that the syndicates affects
price or purchase decision 12 % sometimes, that is during election the syndicates forcefully
collect money and affect price or purchase decision .

Fig :-Do syndicates affect price or influence your purchase decisions too

35%
53%
12%
Yes
N/A
Sometimes

70 | P a g e

QUESTIONNAIRE FOR CONSTRUCTION INDUSTRY
(construction company / promoters / builders)

71 | P a g e

Are you currently running any projects?.........................
If yes then How manY?.

COMMENTS :- Recession time was very crucial time for construction and real estate industry
.As a whole for the total construction chain that is from Real-estate industry to Cement , sand
and aggregates industry. On that point of time the total Indian real estate chain was affected
very badly after that the market started booming and also the mentioned industry started growing
rapidly.
Its true that the construction work is bounded for any kind of development. Because
construction work included many national projects like road bridge ,home for common people
,big business houses. So , its very necessary part of development.

West Bengal also developing rapidly. There are so many factors affecting it positively like
political changes , socio-economic development of the higher segments of Bengal, national as
well as international investment .Areas in side the city laces like rajarhat ,salt lake ,sonarpur
,dugapur and also semi-urbans like Konnagar ,kharagpur as a whole the middle bengal part, you
can see the growth of real-estate development .
Apart from the real estate giants like DLF , Unitech , Simplex , Gammon we can see many others
construction companies are growing like Eden city ,Bengal sristhi , Capricon and many more.
Not only real estate companies ,there are so many leading cement industries like ACC , Ultrat-
tech , Lafarge , Ambuja and local companies like Mahashakti , Bansal , I-core , Pragati etc. are
growing. For Cement market is perfectly competitive for ACC , if they launch branded
aggregates and Sand then market will be monopoly for them .So , this is theright time for
launching such kinds of essential new products.

Fig :- real estate-construction development , area wise
59% 23%
10%
8%
KOLKATA
KHARAGPUR
KONNAGAR
DURGAPUR

72 | P a g e

Are you currently running any projects?

COMMENTS :- The following figure is representing the mean that is Total No of projects / total
number of samples in a single area ,where value of Kolkata = 47 / 10 = 4.7 .
The following graph is showing rapid constructional developments taking place at Konnagar area
including Srirampur to Howrah. From the rail way track we can see various residential
,commercial ,multiplex at those areas.

Fig :- Currently running projects , area wise

32%
47%
14%
7%
KOLKATA
KONNAGAR
KHARAGPUR
ASANSOL

73 | P a g e

Nature of the projects :-

Residential , Commercial , Institutional.

COMMENTS :- Following graph is showing no. residential area is far grater than nos of
commercial areas.

Fig :- Nature of projects %
Size of the projects :-
.

Fig :- sizes of projects , area wise %.

63%
37%
Residential
Commercial
24%
64%
12%
KOLKATA
KONNAGAR
KHARAGPUR

74 | P a g e

Location of the projects :-
..

KOLKATA :-
New town Rajarhat , Nepalgunj gate, Mafidul Islam lane, Beniapukur, Sayed Ahmed road ,
Kestopur , South Kolkata , Garia , Picnic garden, Salt lake, Beleghata, Silchar , Midnapur ,
Barasat, Salt lake.

KONNAGAR :- Konnagar station area , Gobra , Naity , Dankuni area .

KHARAGPUR :- Kharagpur station area , Barbetia , Inda more , Andi more.

COMMENTS :- Residential projects we can see in every where urban and rural both. In urban
areas various residential and commercial projects are running .

75 | P a g e

What type of concrete you currently using for your
project / you generally use for your projects ?

Here concrete means cement. Following graph is showing Ultratech is the most selling brand
,after that Lafarge is in 2
nd
position. According to the remarks of dealers and builders , supply
chain system of Ultra-tech is unique and the bag quality also very good.
I am giving short details about the supply chain network of different companies.

COMPANY PLANT LOCATION SUPPLY-CHAIN MEDIA
Ultra-tech :- Durgapur(W.B) Rail , Road.
Lafarge:- Bankura(W.B) Rail , Road
ACC :- Purulia(W.B) Rail , Road
Ambuja :- Farakka(W.B) Rail , Road
Konark :- Orissa Rail
Birla Samrat:- Durgapur(W.B) Rail,Road
Birla Gold:- M.P Rail

KOLKATA CLUSTER :-

Fig:- Cement brands recommended by real estate companies ,locations wise
KONNAGAR CLUSTER :-

20%
30%
20%
20%
5%
0%
5%
ACC
Ultra tech
Lafarge
Ambuja
Konark
Birla Samrat
Birla Gold
18%
46%
18%
9%
9%
0%
0%
ACC
Ultra tech
Lafarge
Ambuja
Konark
Birla Samrat
Birla Gold

76 | P a g e

KHARAGPUR CLUSTER :-

TOTAL CLUSTER WISE :-
According to the feedbacks ,branded Real estate companies prefers well known brand like Utra-
Tech , ACC , Lafarge ,Ambuja etc.
Branded companies are not only famous more for its Supply chain more than its quality.

Fig :- Cement brands recommended by realestate companies, total samples.

12%
25%
12% 13%
25%
0%
13%
ACC
Ultra tech
Lafarge
Ambuja
Konark
Birla Samrat
Birla Gold
19%
32%
19%
16%
8%
3% 3%
ACC
Ultra tech
Lafarge
Ambuja
Konark
Birla Samrat
Birla Gold

77 | P a g e

If Ready-mix who is your vendor and from where you
procure it?

In rural area local mix machine and vibrators generally uses , but at Kokata construction growth
is more apart from that because of space and time complexity real-estate and construction
companies generally procure ready mix. For an exmplae ACC has its own ready-mix production
unit at sonarpur ,Kolkata.
KOLKATA :- RDC , RNC New town, Shura Construction , Own made , Tranu soln ACC.
KONNAGAR :- Local Mix machine -Vibrator.
KHARAGPUR :- Local Mix machine , Vibrator.

If Site mix, from where to you procure?
cement..
sand .
aggregates.

78 | P a g e

What is the size & shape you are currently using for your
projects ?

28mm..22mm.11mm5mm.

Fig :- Size & shape you are currently using for projects. (%)

11%
36%
32%
21%
28mm
22mm
11mm
5mm

79 | P a g e

What will be your general fractions requirement for
this project (in %)
28mm..22mm.11mm5mm.

What is the frequency of your procurement and
payment terms ?

Fig :- frequency of procurement and payments terms

15%
44%
31%
10%
28mm
22mm
11mm
5mm
39%
22%
5%
6%
22%
6%
1 Month
2 Month
3 Month
1.5 Month
>3 Month
<1 month

80 | P a g e

Do you get your supplies in time and regularly ?
Yesno..

Fig :- Order-delivery delinquency %

What is your order booking process/Sources of
procuring aggregates?

By phone or FAX to company No advance payments ,Payment given after received the
product , Direct visit to the suppliers or Distributor (Mahajan) , by phone to local truck owners ,

What is the present price of the product ?

CEMENT :-
Kolkata 280 290 Rs. / bag.
Konnagar 270 -280 Rs. /bag.
Kharagpur 270-280 Rs. /bag.

AGGREGATES :-
Kolkata :- 4700 per 100 cft.
Konnagar :- 3700 -3900 per 100 cft
Kharagpur :- 3600 -4000 per 100 cft.

89%
11%
Yes
No

81 | P a g e

Is the fractions you ordered consistent ?

Fig :- sizes fractions % wise.

Are the fractions consistent?

Fig: here fractions point outs various shapes of aggregates
72%
28%
Yes
It depends
74%
16%
10%
Yes
No
It Depends

82 | P a g e

Is it cost effective for your project? If you have
better quality ,can it help to reduce cement
consumption?

fig : If you have better quality ,can it help to reduce cement consumption

33%
56%
11%
Yes
N/A
It depends

83 | P a g e

/other syndicates ?

Fig: How is procurement influenced by intermediaries /other
syndicates

Do syndicates affect price or influence purchase
decisions too?

Fig:- syndicates affect price or influence purchase decisions

13%
87%
Yes
N/A
6%
36%
58%
Yes
Sometimes
N/A

84 | P a g e

QUESTIONNAIRE FOR INDIVIDUAL BUILDERS

85 | P a g e

Are you currently running any projects?
Nature of the projects :-.
Size of the projects :-..
Location of the projects :-..

KOLKATA :- Mahisbathan,charaktala.salt lake , Asansol , Beniapukur, Garia ,
Bangur , Topsia , CIT Road, G. J. Khan Road ,Kolkata, Rowdon Street , Bright Street ,
KONNAGAR :- Haran Banerjee Lane- Konnagar , 10 S K Dey Lane, 77/17-
Rammohan Palace , Rammohan palace , 16/A SK Dey Street.
KHARAGPUR :- Inda, Kharagpur .
DURGAPUR :- Baska Road, Andal South Bazar , Pubra, Dharmatala, Andal,
BURDWAN :- Barbeloon Gram Panchayet, Bhatar , Goda, P.O- Lakurddi, Police Line
Bazar, Kurmun.
What type of concrete you currently using for your project / you generally use for
your projects ?

KOLKATA

Fig:- Cement brands ,recommended by individual builders

KONNAGER

12%
23%
23%
12%
12%
12%
6%
ACC
Ultra Tech
Lafarge
Ambuja
Birla Gold
Birla Samrat
Reshmi
Local

86 | P a g e

KHARAGPUR

DURGAPUR

BURDWAN

20%
50%
20%
10%
ACC
Ultra Tech
Lafarge
Ambuja
Birla Gold
Birla Samrat
Reshmi
40%
40%
20%
ACC
Ultra Tech
Lafarge
Ambuja
Birla Gold
Birla Samrat
Reshmi
Local
15%
31%
23%
8%
15%
8%
ACC
Ultra Tech
Lafarge
Ambuja
Birla Gold
Birla Samrat
Reshmi
Local

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Total :-

FIG :- Cement brands recommended by individual builders in my cluster.

If Ready-mix who is your vendor and from where you
procure it?

If Site mix, from where to you procure?
cement.. sand
aggregates

No use of readymix ,Using Dhalai machine.

Local Suppliers , Asha Rod Iron(dealer), Local Suppliers ,
17%
41%
42%
ACC
Ultra Tech
Lafarge
Ambuja
Birla Gold
Birla Samrat
Reshmi
Local
12%
23%
23%
12%
12%
12%
6%
ACC
Ultra Tech
Lafarge
Ambuja
Birla Gold
Birla Samrat
Reshmi
Local

88 | P a g e

What is the size & shape you are currently using for your
projects ?

28mm..22mm.11mm5mm.

Fig :-sizes and shapes of aggregates currently using

15%
41%
36%
8%
28MM
22MM
11MM
5MM

89 | P a g e

What is the frequency of your procurement and
payment terms ?

Fig:- frequency of procurement and payment terms.
Do you get your supplies in time and regularly ?
Yesno

Fig:- Feed back of individual house builders of Supply-chain efficiencies

20%
40%
4%
16%
4%
12%
4%
Daily
Weekly
15 Days
1 month
45 Days
2 months
> 2 months
79%
5%
16%
Yes
No
Depends

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What is your order booking process/Sources of
procuring aggregates?

By phone or direct visit to dealer, no advance payments . Through agent , Directly from
distributor ,

What is the present price of the product ?
CEMENT :-
Kolkata 280 290 Rs. / bag.
Konnagar 270 -280 Rs. /bag.
Kharagpur 270-280 Rs. /bag.

AGGREGATES :-
Kolkata :- 4700 per 100 cft.
Konnagar :- 3700 -3900 per 100 cft
Kharagpur :- 3600 -4000 per 100 cft.

Is the fractions you ordered consistent ?

Fig :- fractions of aggregates size
Is the fractions consistent ?
Yes the fraction is consistent for every time.

89%
11%
Yes
Depends

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Is it cost effective for your project? If you have
better quality ,can it help to reduce cement
consumption?

According to survey report 100% individual builders told its not possible at all.

/other syndicates ?

Fig:- procurement influenced by intermediaries /other
syndicates ?

Do syndicates affect price or influence purchase
decisions too?

12%
88%
Yes N/A

92 | P a g e

Fig:- Do syndicates affect price or influence purchase
decisions too

15%
85%
Yes
No

93 | P a g e

RECOMMENDATION

1) Real estate or infrastructure development market of West Bengal booming . So many Govt.
project of infrastructure development like Road , Rail way projects , fly over ,Govt. park etc.
apart from that Industrial policy of Govt. or creation of Special Economic Zone increasing
the private Investment as well as Foreign direct investment. Many Private real estate
companies like DLF , Unitech , Eden City are investing in residential or supermarket and also
Hospitality center .
Kolkata :- Salt lake city , Rajarhat new town , Sonar pur, Highland park patuli area etc.
Konnagar :- Station area at Hooghly :- from Sreerampur to Bandel , apart from that areas at
Siliguri , Kharagpur , Maldah ,Kalyani ,Durgapur developing is taking place in every place
.So launching of Branded Aggregates and Sand could be successful to emerging the new
market .

2) New product launching is risky step but ACC Cement is still market leader in Indian
cement market where market is perfectly competitive .Companies like Lafarge ,
Ultra-tech ,Birla cements also growing in Indian cement market apart from that
various local cement companies also running well.

3) Holcim is the parent company of ACC where Holcim cement is the largest selling
cement brand world-wide. The products: branded cement and sand already launched
by Holcim in some countries and also running well. ACC is well known Indian
cement brand and Holcim also famous brand world-wide, so the brand value will help
the company to get good market response.

4) For the products like branded aggregates or branded sands are new product line in
Indian market ,here ACC will face competition for the products only from Lafarge
where Lafarge is also going to launch the same ,apart from that local players are still
dominating the market of this product.

5) ACC Cement is known for its product quality ,not only cement the bag quality also
very good ,so for the quality perspective customer or company will definitely choose
the brand ACC.

6) ACC has god relationship with many PSU and Govt. projects for its cement products ,
so the goodwill of the company will be helpful for new product launching.

7) Technology improves customer satisfaction , Branded company means supreme
technological outcomes. ACC purchased stone crashers from Germany apart from
that order delivery system will be far better than local suppliers

94 | P a g e

8) According to me ,full market coverage will the key plan for the company , because
the products are basically construction materials and there are no substitutes of the
products like aggregates or sand. Every-where and to every-body the products are
very important. So , before launching the same products by other companies ACC
should cover the market ,if the company could be able to manage well the products to
customers then it will be promoted well and also run with good will.

95 | P a g e

ANNEXURE
I have prepared questionnaire for better understanding the existing logistics system, which is given
to the C&F agents,Transportes,Truck Drivers .The duty of logistician is that finish goods have
delivered in right places,in right time with right demand.But thats not enough.besides,they have
taken responsibility customer service and there valuable feed back because in every situation
customer is valuable to the company, so to better understand them. I also made visit to the Dealers.

QUESTIONNAIRE AGGREGATES IN THE CONSTRUCTION
INDUSTRY (retailers)

Name of the shop ..Name of owners.
Address.Mobile No..

1) Are you supplying construction materials ?
YesNo.

2) If yes ,give details of the same ?
Cement.
Sand......
Aggregates
Steel......
Bricks
Any others.

3) What is the hinterland you are supplying to ?

4) From where to you procure the materials you sell
Cement.
Sand.
Aggregates

5) In Aggregates which functions do you sell more ?

28mm..22mm.11mm5mm.

6) What is the frequency of your procurement and payment terms ?
.

7) Are your supply policies and payment terms ?

96 | P a g e

.

8) What is your order booking process/sources of procuring Aggregates ?
.

9) What is the present price of this project ?

10) Is the fractions you order consistent ?
.

11) Can you sell a higher priced product by showing cost benefit analysis to customers ?

12) How is your procurement influenced by intermediaries / others syndicates ?
..

13) Do syndicates affect price or influence your purchase decisions too ?
.

THANK YOU

Date Signature.

97 | P a g e

INDUSTRY (construction company / promoters / builders)

Name of the Company /Firm..Name of owners.
Address.Mobile No..

1) Are you currently running any projects?
.If yes then How many?..

Size of the projects :-.

3) If no, are you starting any projects shortly ? Give details .
.

4) What type of concrete you currently using for your project / you generally use for your projects ?
..

5) If Ready-mix who is your vendor and from where you procure it?
..

6) If Site mix, from where to you procure?
Cement..
Sand .
Aggregates.

7) What is the size & shape you are currently using for your projects ?

28mm..22mm.11mm5mm.

8) What will be your general fractions requirement for this project (in %)

28mm..22mm.11mm5mm.


10) Do you get your supplies in time and regularly ?
YesNo..

11) What is your order booking process/Sources of procuring aggregates?

98 | P a g e

12) What is the present price of the product ?
..

13) Is the fractions you ordered consistent ?
.

14) Is the fractions consistent ?
..

15) Is it cost effective for your project? If you have better quality ,can it help to reduce cement consumption?
..

16) How is your procurement influenced by intermediaries /other syndicates ?
..

17) Do syndicates affect price or influence purchase decisions too?
.

THANK YOU

Date Signature.

99 | P a g e

INDUSTRY (individual builders)

Name of the firm ..Name of owners.
Address.Mobile No..

.If yes then How many?..

Size of the projects :-.

3) If no, are you starting any projects shortly ? Give details .
.

4) What type of concrete you currently using for your project / you generally use for your projects ?
..

5) If Ready-mix who is your vendor and from where you procure it?
..

6) If Site mix, from where to you procure?
Cement..
Sand .
Aggregates.

7) What is the size & shape you are currently using for your projects ?

28mm..22mm.11mm5mm.

8) What will be your general fractions requirement for this project (in %)

28mm..22mm.11mm5mm.


10) Do you get your supplies in time and regularly ?
YesNo

11) What is your order booking process/Sources of procuring aggregates?
.

12) What is the present price of the product ?
.

13) Is the fractions you ordered consistent ?

100 | P a g e

..

14) Is the fractions consistent ?

15) Is it cost effective for your project? If you have better quality ,can it help to reduce cement consumption?

16) How is your procurement influenced by intermediaries /other syndicates ?
.

17) Do syndicates affect price or influence purchase decisions too?
.

THANK YOU

Date Signature.

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ACC Road Ahed:-

102 | P a g e

-: Bibliography:-
Marketing Managemet----------------:: Philip Kotler.
Marketing Research---------------------:: Rajendra Nargundkar

Website :-
www.acclimited.com.
www.acchelp.com
www.accask.com
www.google.com
www.wikipedia.com
www.cemnet.com
www.pca.com
www.ceicdata.com
www.economictimes.com
www.icra.in
www.businessworld.com
www.cso.com
www.indiabusiness.nic.in

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