1.

1INDUSTRY PROFILE

Cement Industry
Cement is a binder, a substance that sets and hardens and can bind other materials together.
The word "cement" traces to the Romans, who used the term opus caementicium to
describe masonry resembling modern concrete that was made from crushed rock with burnt
lime as binder. The volcanic ash and pulverized brick supplements that were added to the
burnt lime, to obtain a hydraulic binder, were later referred to
as cementum, cimentum,cment, and cement.
Cements used in construction can be characterized as being either hydraulic or non-hydraulic,
depending upon the ability of the cement to be used in the presence of water (seehydraulic
and non-hydraulic lime plaster).
In 2010, the world production of hydraulic cement was 3,300 million tonnes. The top three
producers were China with 1,800, India with 220, and USA with 63.5 million tonnes for a
combined total of over half the world total by the world's three most populated states.
For the world capacity to produce cement in 2010, the situation was similar with the top three
states (China, India, and USA) accounting for just under half the world total capacity.
Over 2011 and 2012, global consumption continued to climb, rising to 3585 Mt in 2011 and
3736 Mt in 2012, while annual growth rates eased to 8.3% and 4.2%, respectively.
China, representing an increasing share of world cement consumption, continued to be the
main engine of global growth. By 2012, Chinese demand was recorded at 2160 Mt,
representing 58% of world consumption. Annual growth rates, which reached 16% in 2010,
appear to have softened, slowing to 56% over 2011 and 2012, as Chinas economy targets a
more sustainable growth rate.
Outside of China, worldwide consumption climbed by 4.4% to 1462 Mt in 2010, 5% to 1535
Mt in 2011, and finally 2.7% to 1576 Mt in 2012.
Iran is now the 3rd largest cement producer in the world and has increased its output by over
10% from 2008 to 2011.[38]Due to climbing energy costs in Pakistan and other major cement1

producing countries, Iran is a unique position as a trading partner, utilizing its own surplus
petroleum to power clinker plants. Now a top producer in the Middle-East, Iran is further
increasing its dominant position in local markets and abroad.
The performance in North America and Europe over the 201012 periods contrasted
strikingly with that of China, as the global financial crisis evolved into a sovereign debt crisis
for many economies in this region and recession. Cement consumption levels for this region
fell by 1.9% in 2010 to 445 Mt, recovered by 4.9% in 2011, and then dipped again by 1.1% in
2012.
The performance in the rest of the world, which includes many emerging economies in Asia,
Africa and Latin America and representing some 1020 Mt cement demand in 2010, was
positive and more than offset the declines in North America and Europe. Annual consumption
growth was recorded at 7.4% in 2010, moderating to 5.1% and 4.3% in 2011 and 2012,
respectively.
As at year-end 2012, the global cement industry consisted of 5673 cement production
facilities, including both integrated and grinding, of which 3900 were located in China and
1773 in the rest of the world.
Total cement capacity worldwide was recorded at 5245 Mt in 2012, with 2950 Mt located in
China and 2295 Mt in the rest of the world.

Cement Industry in Nepal

Nepal is enriched with large and small deposits of good cement grade limestone.
The limestone deposits occur within the sequence of the Lesser Himalayas
Extending from the east to west. Limestone is by far the most important mineral resource in
Nepal, followed by magnetite, marble, lead and zinc. So far, this is also the most
economically viable mineral resource. A total of about 1,250 million tons of cement grade
limestone is estimated to exist in the country and the existence of at least 224 million tons
have been confirmed through drillings and dedicated surveys. Even when only a few deposits
are being exploited for commercial production of cement and allied products, limestone still
tops the listof the most exploited mineral resources in Nepal.
Despite the abundance, domestic cement production only accounts for 40percent of total
consumption in Nepal, informs Tej Kant Jha, general manager, Udayapur Cement
Industries (UCI). Headds, UCI alone has been fulfilling 25percent of the total domestic
market demand. All other Nepali cement manufacturers contribute about 15percent of the
demand. Imported cement, mainly Indian, fulfill the remaining 60percent. But Ramesh
Kumar Aryal, general manager, Hetauda Cement Industries (HCI) chooses to differ. He
comments, In the latest scenario, imported cement supplies70 percent of the market
demand. Needless to say, a good market for cement exists within and outside the country.
Aryaladds, With inadequate infrastructure and frequent power crisis in the industries, forget
exporting, even self-dependency in cement production will remain a dream. The data from
the Department of Industries does confirm that cigarettes and beer are the only merchandise
whose total capacity utilisation exceeds 50percent.With the resolution of conflict, a big boost
in this industry is likely. The government has promised to invest a lot in infrastructure
development particularly roads, in addition to housing construction and expansion of
corporate production facilities. But private sector investment in the cement
industry according to the Department of Industries does not indicate the expected boost
but rather a decline. Companies register but fail to operate either due to
government indecisiveness and negligence or their own inabilities. Jha comments,
Even after approval from the Ministry of Industry, Commerce and Supply, new projects are
still lost in a bureaucratic maze trying to coordinate w i t h a g e n c i e s l i k e t h e
Department of Road, Department of Forest and other related departments, and adds,
Mineral regulation will be efficient if such h i n d r a n c e s a r e r e m o v e d o n c e t h e
Department of Mines and Geology leases the land for exploitation. Aryal further suggests,
3

The government should offer time bound license to private companies so that they are
motivated to operate within the time frame, and emphasises, T h e g o v e r n m e n t
s h o u l d s u p p o r t t h e company by eliminating hassles.
Modern Cements
Modern cement Modern hydraulic cements began to be developed from the start of the
Industrial Revolution (around 1800), driven by three main needs: Hydraulic renders for
finishing brick buildings in wet climates Hydraulic mortars for masonry construction of
harbor works etc, in contact with sea water. Development of strong concretes. In Britain
particularly, good quality building stone became ever more expensive during a period of rapid
growth, and it became a common practice to construct prestige buildings 17 from the new
industrial bricks, and to finish them with a stucco to imitate stone. Hydraulic limes were
favored for this, but the need for a fast set time encouraged the development of new cements.
Most famous was Parker's "Roman cement." This was developed by James Parker in the
1780s, and finally patented in 1796. It was, in fact, nothing like any material used by the
Romans, but was Natural cement" made by burning septaria - nodules that are found in
certain clay deposits, and that contain both clay minerals and calcium carbonate. The burnt
nodules were ground to a fine powder. This product, made into a mortar with sand, set in 5
15 minutes. The success of "Roman Cement" led other manufacturers to develop rival
products by burning artificial mixtures of clay and chalk. John Smeaton made an important
contribution to the development of cements when he was planning the construction of the
third Eddystone Lighthouse (1755-9) in the English Channel. He needed a hydraulic mortar
that would set and develop some strength in the twelve hour period between successive high
tides. He performed an exhaustive market research on the available hydraulic limes, visiting
their production sites, and noted that the "hydraulicity" of the lime was directly related to the
clay content of the limestone from which it was made. Smeaton was a civil engineer by
profession, and took the idea no further. Apparently unaware of Smeaton's work, the same
principle was identified by Louis Vicat in the first decade of the nineteenth century. Vicat
went on to devise a method of combining chalk and clay into an intimate mixture, and,
burning this, produced an "artificial cement" in 1817. James Frost, working in Britain,
produced what he called "British cement" in a similar manner around the same time, but did
not obtain a patent until 1822. In 1824, Joseph Aspdin patented a similar material, which he
called Portland cement, because the render made from it was in color similar to the
4

prestigious Portland stone. All the above products could not compete with lime/pozzolan
concretes because of fastsetting (giving insufficient time for placement) and low early
strengths (requiring a delay of many weeks before formwork could be removed). Hydraulic
limes, "natural" cements and "artificial" cements all rely upon their belite content for strength
development. Belite develops strength slowly. Because they were burned at temperatures
below 1250 C, they contained no alite, which is responsible for early strength in modern
cements. The first cement to consistently contain alite was made by Joseph Aspdin's son
William in the early 1840s. This was what we call today "modern" Portland cement. Because
of the air of mystery with which William Aspdin surrounded his product, others (e.g. Vicat
and I C Johnson) have claimed precedence in this invention, but recent analysis of both his
concrete 18 and raw cement have shown that William Aspdin's product made at North fleet,
Kent was a true alite-based cement. However, Aspdin's methods were "rule-of-thumb": Vicat
is responsible for establishing the chemical basis of these cements, and Johnson established
the importance of sintering the mix in the kiln. William Aspdin's innovation was counterintuitive for manufacturers of "artificial cements", because they required more lime in the
mix (a problem for his father), because they required a much higher kiln temperature (and
therefore more fuel) and because the resulting clinker was very hard and rapidly wore down
the millstones which were the only available grinding technology of the time. Manufacturing
costs were therefore considerably higher, but the product set reasonably slowly and
developed strength quickly, thus opening up a market for use in concrete. The use of concrete
in construction grew rapidly from 1850 onwards, and was soon the dominant use for cements.
Thus Portland cement began its predominant role. It is made from water and sand.
Market Research
The market for Nepali cement is very good. All the cement stock sells easily for they are good
in quality and competitively priced as well. Jha says, The limestone quality is also superb. Calcium
oxide (CaO) content ranges from 43 to 53 percent and Magnesium oxide (MgO) content
isless than three percent. Therefore, cement quality is the best in market. The standard
content of CaO in cement grade limestone is 42 percent and MgO is five percent. The ratio of
CaO and MgO needs to be maintained to enhance the binding power of cement. About HCI,
Aryal says, The quality of limestone in all the mimesis of cement grade except that of Bhainse.
Bhainse limestone has to be mixed with limestone from other mines to produce quality
cement.
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Grade of Cement
Grade of cement only indicates the c o m p r e s s i v e s t r e n g t h o f c e m e n t ( n o t concrete)
at 28 days. But cement continues to increase in strength beyond28 days, with not much
difference in long term strength.

Required compressive strength of various grades of Ordinary Portland Cement (OPC)

Minimum compressive strength in Newton per square millimetre
Age
Three days
Seven days
28 days

33 Grade
16
22
33

43 Grade
023
033
043

53 Grade
027
037
053

Measures to curb low output

To improve output, many changes have been made. A separate transformer for UCI has been
installed. This minimises power failures to a great extent. An adequate spare parts reserve has
also decreased the negative effect of machinery breakdown.
Foreign cement encroachment
Market research tells us that consumers go for Indian cement only when they do not find
Nepali cement. We have always been trying to increase the production to cover larger
proportion of the market and lessen the encroachment of Indian cement. But the fore
mentioned constraints pull us back. Also, due to leakage in the borders, Indian cement enters
the market at cheaper prices.
Declining cement production
Political instability, formation of trade unions, frequent change in management and
incompetent managers are the mains reasons for the decline. Political instability has created
sense of insecurity for foreign investors. Private investment has also been grossly

discouraged. Just as schools have been declared peace zones, effort should also be made to
declare industries as peace zones.

Environment protection measures

To be environmentally friendly incompliance with the mineral law, we have advanced
machinery control. Modern machines with electrostatic precipitator (ESP) greatly reduce
environment hazards. This technology collects dust that otherwise spreads in the atmosphere
creating air pollution.
Contribution to national economic growth
UCI paid electricity bills of 150 million rupees, loan payoff of 200 million rupees, VAT of
87.5 million rupees and excise duty of 10.5million rupees to the government this fiscal year.
These revenues grow with the growth of cement production. And as a commodity, cement
definitely contributes to national development.

Self-dependency in cement
Nepal has more than enough mineral resources to be self-dependent in cement. Political
instability is the major drawback in exploiting this rich resource. Also, the industrial policy
must be updated from time to time. Currently, the policy must be revised to attract foreign
investors. Foreign investors are not sure when and if they will be able to reap returns. Primary
goal should not be focused on economic growth but political stability. Another drawback in
our system is late decision making. According to one door policy, investors long to invest but
lack of prompt decisions at bureaucracy levels disinterests them. In countries such as China,
India, Thailand, Pakistan, Bangladesh and others, once the license is approved for foreign
projects according to the one door policy, then and there they sit together and decide
everything. Here, even after licensing, different departments keep hindering the operation.
Poor labour laws are another drawback. The Ministry of Labour and Social Welfare is
focused only on overseas labour law. The ministry is least concerned about formulating
appropriate labour laws in the country. Ministers should know their ministries well before
they take office.

Road Ahead
The eastern states of Nepal along with the Border States will be the newer and virgin markets
for cement companies and will contribute to their bottom line in future. In the next 10 years,
Nepal will become the main exporter of clinker and gray cement to the Middle East, Africa,
and other developing nations of the world. Cement plants near the ports, for instance the
plants in Gujarat and Visakhapatnam, will have an added advantage for exports and will
logistically be well armed to face stiff competition from cement plants in the interior of the
country.
A large number of foreign players are also expected to enter the cement sector in the next 10
years, owing to the profit margins, constant demand, and right valuation. Cement companies
will go for global listings either through the FCCB route or the GDR route.
With help from the government in terms of friendlier laws, lower taxation, and more
infrastructures spending, the sector will grow and will take Nepals economy forward along
with it.
Exchange Rate Used: INR 1 = US$ 0.016 as on February 24, 2015

Government Initiatives
Government initiatives in the infrastructure sector, coupled with the housing sector boom
and urban development, continue being the main drivers of growth for the Indian cement
industry.
Increased infrastructure spending has been a key focus area. In the Union Budget 2010-11,
US$ 37.4 billion has been provided for infrastructure development.
The government has also increased budgetary allocation for roads by 13per cent to US$ 4.3
billion.

Future Trends
The cement industry is expected to grow steadily in 2009-2010 and increase capacity by
another 50 million tons in spite of the recession and decrease in demand from the housing
sector.
The industry experts project the sector to grow by 9 to 10% for the current financial year
provided India's GDP grows at 7%.
The major players have all made investments to increase the production capacity in the
past few months, heralding a positive outlook for the industry.
The housing sector accounts for 50% of the demand for cement and this trend is expected
to continue in the near future.

Cement industry in Nepal

Demand for cement in Nepal
Total demand for cement is expected to grow at a CAGR of 10.2 per cent to 265.9 million
tonnes during FY08-13.

Major cement demand drivers

Housing sector accounts for 64 per cent of the total cement demand in Nepal.

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1.2 COMPANY PROFILE

Vishwakarma Cements Limited is a Public Company incorporated on 22 October 1991. It is
classified as Indian Non-Government Company and is registered at Registrar of Companies,
Jaipur. Its authorized share capital is Rs. 80,000,000 and its paid up capital is Rs. 57,481,500.
Vishwakarma Cements Limited's Annual General Meeting (AGM) was last held on 30
September 2014 and as per records from Ministry of Corporate Affairs (MCA), its balance
sheet was last filed on 31 March 2014.
Directors of Vishwakarma Cements Limited are Ramesh Chand Mehta, Sushila Mehta and
Narendra Kumar Mookim.
Ghorahi Cement Industry Private Limited is a subsidiary of Triveni Group in partnership with
Vishal Group and acts as a sister concern to its other cement companies, Vishwakarma
Cement, Shree Pashupati Cement and Kapilvastu Cement. The Company was established in
the year 2009, set amidst the town of Ghorahi, Dang, the largest valley of Asia, situated in
Western Nepal. The manufacturing unit has the capacity to produce 1200 MTPD Clinker and
750 MTPD Cement and is the Largest Cement Industry that exists in Nepal in the Private
Sector. Sagramatha OPC and Sagarmatha Gold PPC are the Cement Brands of GCIPL.GCIPL
guardians to work towards a common goal of being a sustainable, pollution free, cost
effective plant. By this means, it allows all its sister companies to work on a single platform,
which creates a sense of equality, consistency and consequently a mutual growth of both, the
company, the employees and hence the economy.
The company is active in the elds of cement production and mineral resources. It began
production of limestone from Tapa Mine in Dang District of Nepal in 2012. It has also
invested in several mines in the western part of Nepal for extraction of various commodities
such as coal and limestone.
The cement is sold in two brands Vishwakarma Cement and Gorkha Cement, both of which
have a high brand image amongst local consumers.
They would like to call ourselves pioneers in this eld, for it constructed one of the rst
private cement plants in Nepal. And with a 1900tpd clinkerization unit under construction in
Ghorahi, Dang district of Nepal, it hopes that its collective cement capacity strength will:

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Provide employment opportunities for locals.

Substitute imported cement from India.
Provide an environmentally sustainable industrial growth to the nation.
Help in building the country's infrastructure.

Retail
Years of dealing in the market have given us a strong understanding on not only the market
but also of background logistics. We have a strong network of vans and delivery systems to
ensure availability of the products we distribute in every part of the country.
Triveni Group also has several ofces in India to distribute international brands in the lines of
FMCG and musical instruments.
In 2010, our company forayed in the retail sector with the opening of a retail chain by the
name of "Big Mart". There are currently 5 stores in Kathmandu, with a plan to expand to 25
stores across Nepal in the next 3 years, making it the largest retail chain in the country. We
have 11 warehouses located strategically through-out the country to ensure product
availability to our customers.

Banking and insurance

Nepal Life Insurance Company was established as a public limited company in 2001. In a
short span of nine years it's become the foremost life insurance company established by
private investors, with its promoters being a group of well-known businessmen of Nepal.
The company has set its focus on providing qualitative services of International Standard.
This ambition cannot be fullled without the help of information technology. And NLIC has
strong IT infrastructure and its branches are connected through wide area networking to
provide better customers service.

In 2012, TG anchored the merger of two Grade 'A' commercial banks viz. NIC Bank and
Bank of Asia, making NIC Bank of Asia the leading commercial bank in Nepal.
The Nepal Merchant Bank is the rst commercial bank of Nepal that has been able to upgrade
itself from a Finance Company to a full - edged Commercial Bank. Nepal Merchant
Banking and Finance Ltd., the erstwhile name of the institution, was amongst the leading
12

nancial institutions in its category till May 2008 when the transformation process for the
upgradation was completed and the name was changed to NMB Bank Limited.
The NMB Bank is the brainchild of leading Nepali entrepreneurs who envisioned a dream of
framing the ultimate in Merchant Banking and Financial Services. Harnessing from its
strength on Merchant Banking, NMB bank has decided to broaden its scope of services by
building synergies to its current operations. This unprecedented event has been possible by
way of strong commitment and condence of all the stakeholders viz. customers, promoters,
shareholders, regulators and employees.

Prudential Insurance Company was incorporated under the Companies Act on November 30,
2000. With the approval of Beema Samiti, it commenced operation on June 20, 2002. The
Company's operation is computerized with an integrated insurance software that ensures
speedy and quality service to its customers in matters of issuing policies and settlement of
claims. Emphasis is put on recruitment of quality staff and providing them effective training
to ensure a truly professional service. The Company regards that professional management,
efficient computerization of its operation and trained staff with a strong customer focus give
it a cutting edge in the competitive environment of the present market. The Company has a
suitable reinsurance protection from a consortium of reinsures of first class security as rated
by the internationally accredited rating agencies like A.M. Best. While the General Insurance
Corporation of India are the lead reinsures, the other members of the consortium include Zep
Re (PTA Reinsurance Company), Trust International Insurance and Reinsurance Company
B.S.C.(C), Trust Re Baharain and Asian Reinsurance Corporation. Thus the reinsurance
arrangement of the Company gives its customers a measure of confidence in the Company's
ability to meet its obligations in regard to settlement of claims, particularly the large ones.

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Trading
Trading has been the back-bone of Triveni Group since its inception in 1920 and has helped
us grow multi folds.
Our trading division is handled by Triveni Byapar Company Pvt. Ltd. which is considered
one the largest distributors in the country. It represents several world known brands such as
Panasonic, Motorola, Fuji Film amongst many others.
Triveni Byapar Company has a highly experienced sales team of 100 people handling brands
in the areas of FMCG, Consumer Durables and Electronics. The company has 11 branch
ofces in Nepal all equipped with warehouse facility to ensure smooth delivery of our
product in the market.

Entertainment
BIG Movies is one of the best & Nepal's First Multiplex. It has 3 screens having capacity of
870 seats providing world class auditorium with a Superior Xenon Projection Systems,
Crystal Clear DTS sound, luxurious comfort seats and a wide screen viewing experience. Our
mission is to offer a world class cinematic experience. BIG Movies strongly believe in
bringing the highest exhibition standards to make your Movie Experience "the best
memorable forever" with our excellent services at our different pace starting from ticket
counter to Exit. There are 2 ticketing counters operating from 8:00 AM to 8:00 PM for faster
and easier ticketing. Apart from this, we have tele booking and online ticketing system to
book the tickets. At F & B Counter we offer varieties of quality food which can be ordered
and served on ones seat. We have a huge lounge with luxurious sofa where you can enjoy the
trailer of the upcoming movies on the wall screens before your show starts. BIG Movies look
forward to bring more innovative ideas in respect of new latest technologies, advance
operating systems, best offers & future expansion to provide complete entertainment
experience for its patrons..

NLIC City centre, the rst shopping mall in Nepal with a multiplex, is located in the heart of
the capital city of Kathmandu. This extravagant edice comprises of 5 levels, roofed by a
terrace restaurant and is poised to add unknown zest to the lives of residents' and tourists
14

alike. This 5-storeyed shopping arcade is centrally air-conditioned with fully functional
CCTV's, smoke detector, re alarm, re hydrant, 24-hour generator back up and round the
clock security guard.
The fourth oor or the tastiest oor of the City Centre offers you delicacies from across the
globe. Be it Indian, Chinese, Korean, Italian, Thai, Japanese or Vietnamese, it'll always leave
you asking for more. Not to forget, the scrumptious Nepali food that will make you clamour
for more.
The mall is the only shopping junction in Kathmandu which houses all the leading brands in
Nepal.

NEPAL TEA CORPORATION

The Nepal Tea Corporation is a highly distinguished name in the Tea produce sector. The
scenic and prolic Tea Gardens are strategically located in the eastern region, bordering India
and Nepal.
Nepal is highly favoured by its vast geographical contrasts. From the snow-capped mountains
in the north to the tropical lowlands in the south, Nepal fuels many an efforts. Especially for
tea growth, as its enthralling setting stitched with an equally apt climate, adds to the quality
of the tea produced. The results are fresh, aromatic teas that heighten the sensorial pleasures
of tea drinkers around the world.
Owing to such favourable factors, it's hardly a surprise that The Nepal Tea Corporation offers
7 unique products, namely, Tokla Box, Tokla Gold Box, Tokla Tea Bag, Soktim Box, Ilam
Tea, Mai Valley and Mountain Gold.

PACKAGING
Started in 1997, Triveni Synpacks and Triveni Flexopack has factories in Chhatapeepra,
Nepal and Mahalaxmi Polypack Pvt Ltd in Rudrapur, India. With over 9000 metric tonne
capacity in Nepal, TG deals with products such as PP Woven Fabrics and sacks.
Packaging Industry in TG employs over 250 direct and indirect employees.

15

SUGAR MANUFACTURING
Since the inception of our group, we have been involved in trading of textiles. Soon we
emerged as pioneers in textile trading, when Nepal's textile market was mostly dependent on
import. Now, Triveni Group produces nished fabrics under Triveni Textile Industries Pvt.
Ltd. which started in 1996 and is located in the Bara district of Nepal.
We specialize in shirting, suiting, dress materials and furnishing products, like curtains. We're
contemporary in our designs but our inspiration is rooted deep in our culture. As a result, one
can easily nd dakatopi, lungi print et al, among deliverables.
Our weaving machine techniques include sulzer, rapier, water jet, underpick, overpick
imported from India, Japan, South Korea and Switzerland. While our dyeing and nishing
machine comes from India and France, our printing machine comes solely from India.
With a weaving capacity of 5 million meters and dyeing capacity of 20 million meters we
offer the largest range and highest variety of products and thus, have been able to makes
ourselves the rst choice for local textile products in terms of quality, trend and reliability.
Our mission is to reliably deliver competitively-priced, quality products to our consumers in
the textile industry.

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Corporate Social Responsibility

All CSR activities of Triveni Group are handled by Gopalrai Triveni Devi Sanghai Sewa
Trust.
Some of our notable contributions have been:

In Agarwal Bhawan(a center for holding marwari cultural events in kathmandu) a hall
was built where marriages/poojas place.

In Narayanghat(Nepal),TG sponsored a Sanskrit School where rooms for teaching and

lodging of student were constructed.

In Birgunj(Nepal),a cattle raising farm has been made for taking care of
oldcows,Infrastructure includes buildings and appropriate farm for feeding the cattle.

In Birgunj,a school for the less fortunate has been built under the name of Pashupati
Siksha Mandir.

In Birgunj,the emergency ward of Narayani Hospital was made by this arm of Triveni
group.

Contributions have been made to the Birgunj Marwari Sewa Trust enabling
ambulances and other infrastructuren to be developed.

In Kathmandu,Eye examination and treatment ward at AMC Hospital was

constructed.

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1.3 VISION,MISSION,GOALS AND OBJECTIVES

Vision
To be a profitably growing innovative and Caring Company, aspiring to Double the market
share and be among the top in Nepals cement.
We are a World Class Group of Companies, committed to Leadership in the Regional
Business Community and Progressive Partnering with all our Stakeholders through:

A Focus on Customer Satisfaction with Quality Products and Services

Superior Financial Performance and Rate of Return to our Shareholders

Growth through Diversification and Expansion in our Core Competency and through
Nurturing Strategic Alliance

The Continuous Empowerment of our Family of Employees Participating in a

Network of Mutual Support.

Mission
"To be a Profitable World

Class Cement Company Satisfying the Needs of its Customers,

Shareholders and Employees through the provision of High Quality Products and Services in
a safe and healthy Environment while Optimizing its Natural and Technological Resources
and Sustaining Growth and Development".

Create Value for all

o

Delighted Customers

Inspired Employees

Enlightened Partners

Energized Society

Loyal Shareholders
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Healthy Environment

19

OPEN DOOR POLICY AND FAIR TREATMENT PROCESS

The Dealership believes in and supports equal employment rights for all employees. It is our
Dealership policy to provide equal employment opportunity in all areas of personnel practice,
including recruiting, hiring, training, promotion, compensation, benefits, and all other terms
of and conditions of employment. In keeping with this policy, we will hire, train, promote and
compensate on the basis of skill, ability, reliability and performance, as well as education and
experience.
This policy will be administered without regard to race, color, religion, sex, age, disability,
marital status, national origin, or any other protected classification.
The key to achieving our business objectives is to employ the most vital, intelligent, positive
and imaginative men and women of high character. Once employed, each employee will be
afforded the opportunity to realize maximum potential. Our greatest asset is the performance
capacity of our employees.

Goals and Objectives

1.

To produce, manufacture, treat , process, prepare, refine, import, export, purchase, sell

and generally to deal in either as principals or as agents either solely or in partnership with
others, all types and kinds of cement ordinary, white coloured, Portland, pozzolana, alumina,
blast furnace, silica and all other varieties of cement, lime and limestone, clinker and / or byproduct thereof, as also cement products of any or all descriptions, such as pipes, poles,
slabs, asbestos sheets, blocks, tiles, garden wares, plaster of paris, lime pipes, building
materials and otherwise, and articles, things, compounds and preparations connected with the
aforesaid products, and in connection therewith to take on lease or otherwise acquire, erect,
construct, establish, work, operate and maintain factories , quarries, mines and workshop.
2.

To carry on all or any of the business as manufacturers and dealers in cement products,

lime, plasters, whiting clay, gravel, sand, minerals, earth, coke , fuel, gypsum, coal, jute,
Hessian cloth, gunny bags, paper bags, artificial stones and all builders requisite made out of
cement and cement products and conveniences of all kinds.

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3.

To carry on the business of manufacturers and dealers in cement products, lime,

plasters, whiting clay, gravel, sand, concrete, mortar, minerals earth coke fuel artificial stone
and builders requisites and conveniences of all kinds and to produce manufacture, purchase,
refine, prepare, process, import, export, sell and generally deal in cement, Portland cement,
alumina cement, plaster of paris, lime and lime stone, marble granite, kankar and or by
products thereof and in connection therewith to acquire erect, construct establish, operate and
maintain cement factories workshops and other works.
4.

To carry on the business as manufacturers and dealers in Grey Cement, white Portland

cement, ordinary port land cement and cement of all kinds and varieties, concrete, lime, clay,
gypsum and lime stone, sagole, soap stone, repifix cement and allied products and by
products and to establish construct, acquire, run, operate on any factory for manufacturing
cement and allied products.

1.4

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2. ORGANISATIONAL STRUCTURE OF VISHWAKARMA CEMENTS

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3. FUNCTIONAL AREAS

3.1 Finance

The goal of working capital management is to ensure that the firm is able to continue its
operation and that it has sufficient cash flow to satisfy both maturing short term debt and
upcoming operational expenses. Working capital is primarily concerned with inventories
management, Receivable management, cash management & Payable management.

Inventories management at Vishwakarma Cements:

Vishwakarma Cements is a large scale manufacturing company involved in production of
Cement. Therefore, it has to maintain large quantity of inventories at production units for its
smooth running and functioning.

Cash management at Vishwakarma Cements:

Vishwakarma Cements has been accumulating huge cash surpluses over last several years,
which enables the organization to maintain adequate cash reserves and to generate required
amount of cash.

Need for Study

1. Need Of Financial Management Study to Diagnose The Information Contain In Financial
Statement, so as to Judge the Profitability and Financial Position of the Firm.
2. Financial Analyst Analyses The Financial Statements With Various Tools Of Analysis
Before Commanding Upon The Financial Health Of The Firm.
3. Essential to Bring Out the History.
4. Significance and Meaning of the Financial Statements.
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Objectives:
1. To understand the financial statements of Vishwakarma cements.
2. To study the change in assets and liabilities of the company.
3. To study the liquidity position of the firm.
4. To study the financial health of the company using ratio analysis.
5. To study the profitability of the company.
6. To offer suggestions to the company.

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3.2 Marketing
Product
Product Cement industry does not have a large product mix and same applies for various
cement companies. The product mix can be classified on the basis of the types of cement
available.
Price
In Cement industry price is used only as a differentiator between the various Competitors
brands. The prices of different brands in the same segment remain more or less similar, with
just a difference of 2-5 rupee per bag. Sometimes price also varies with the order placed by
the customer i.e. order placed by him is in trade or in non-trade. Pricing decisions in the
cement industry largely depend on the price of the inputs like clinker, other raw materials,
excise duties and taxes and the general operating profits. Generally increase or decrease of
prices is affected across all brands in the market.
Promotion
The major customer base which buys cement in Nepal even today is the household owner.
The end customers purchase is influenced by opinion leaders viz. contractors, masons,
architects etc. Thus to attract them cements sales teams organize seminars for contractors and
masons. They also interact with retailers and distributors who are the channel members
representing the company to the end customer. They act as the connecting link. They also act
as a channel between the company and contractors. The retailers or distributors play an
important part in influencing the end customer.
Place
Distribution Channels Involved: It is required a nationwide reach with strong foot prints in
India. The cement plants may also cover strategic locations in all the regions. A wide dealer
and retainer network also required to nurture the empowered trade partnership even to reach
even the tiniest village.

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Marketing Policy

Provide consistently high quality cement at most economical price

Product Quality exceeding customer's expectations
Timely Despatches
Attractive and functional packing
Quick Business Response
Prompt After-Sales service
Adhering to fair and ethical business practices
Strengthening the bond with existing customers

Customer Service
Customer Service cell have been established at various marketing centres which are manned
by qualified and experienced technical personnel. They provide advice to customers on
getting the best value from cement and offer assistance on civil construction related issues.
Influencing the influencers is a plank of our marketing strategy by disseminating information
about our products through one-to-one interaction with masons/architects/engineers.

Objective of the project

This project was undertaken for two main objectives To carry out market survey for knowing prevailing market condition of Vishwakarma
Cements Pvt.Ltd in Nepal.
To study the sales and promotion activities undertaken by Vishwakarma Cements and other
players in the market.
To attain these two objectives various other sub objective were needed to be achieved. These
are listed below.
To analyze the market share of Vishwakarma Cements in Nepals market.
To know the customers preference for the brands of cement.
To know the preference of retailer for sorting different brands of cement.
26

To understand the effectiveness of various sales promotion activities of cement.

To know preference of retailers for different gift and incentives.
To analyze the sales promotion activities of various brands.
To analyze the transportation facilities for Lafarge and other cement companies.
To analyze the frequency of visits of marketing representative of various companies.Thus
it attempt to find ways to increase market share, to increase customer satisfaction and thus
increase the business prospects.

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3.3 Human Resource Management

Hr Policy
Developing people to deliver results in changing environment by their training and skills by
their commitment and team spirit, by their foresight and resilience and by their dedication
and loyalty.

Hr Vision

Objective Selection Method,

Continuous Training and Development
Competitive Wage & Salary Structure
Well Defined Systems, Rules and Procedures
Goal Oriented Appraisal System and Counseling
Encouraging Openness, Participation and Cooperation
Synchronizing Personal Aspirations with Organisation Goals
Enforcing Professional Values and Code of conduct
Providing Opportunities for Growth and Advancement
Prompt Grievance Attendance System
Improving Quality of Life both on and off-the-job
Discharging Social Responsibilities through the Institution of Seva Trust
Reviewing Constantly and Improving Personnel Practices.

Career with Vishwakarma Cements

Human Resource is valuable asset to our organisation. High Caliber young professionals
with proven talents in diversified fields would be preferred, who can innovate for tomorrow
28

and will be the face of the company. They offer job enrichment and enhancement
opportunities at all levels. Right environment with latest infrastructure matched by
knowledge and acumen of the professional make the promising future.

29

3.4 Production
Production Process

The basic raw material for the production of cement is Limestone. The Limestone ore as
obtained from the Mines is fed to the Raw Mills after crushing it to acceptable size. Additives
such as Iron Ore, High Grade Limestone (Sweetener) etc. are also fed along with Limestone
into the Raw Mills as required. In the Raw Mills, the above inputs are ground to a particular
fineness. The output of the Raw Mills, called 'Raw Meal' is then burnt in the Kiln and then
cooled to produce Clinker. The fuel used for burning of limestone is powdered coal produced
from the coal Mill. The Clinker is thereupon fed into Cement Mill & pulverized along with
Gypsum to yield the basic cement. A certain proportion of Clinker in the production of
cement is replaced by fly ash to produce PPC and by Slag to produce PSC.

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4. ANALYSIS AND INTERPRETATION

Random Sampling technique was used to select the retailers. Out of nearly 400 retailers of
cement, randomly 50% of population was considered as a sample size. 189 retailers were
visited to collect the information about the cement market. The project was carried out for a
period of 45 days. After collecting the detailed information from the market, analysis of the
data was made. The market research has revealed many facts and figures about cement
market.

DATA COLLECTION
The descriptive nature of research necessitates collection of primary data from retailers
through market survey, personal interview technique was used and interview was conducted
through structured questionnaire the question were asked in prearranged manner. The market
research was conducted over a period of 45 days. Data was tabulated, analyzed and
suggestion and recommendation were given.

RESEARCH INSTRUMENTATS
The Research instrument chosen for conducting the survey was structured questionnaire was
prepared as show as in the annexure. The questionnaire includes open ended as well as close
ended question, few open ended question were included to obtain the perception of the
retailers .The questionnaire designed and a pilot survey was made with the questionnaire and
then changes were made accordingly with the questionnaire.

ANALYSIS AND INFORMATION

Detailed information was collected for the project marker survey for retail marketing and
sales promotion activities of Vishwakarma Cements.The information was collected by
visiting the retailers of cement present in Nepals market. The interview of retailer taken in a
friendly atmosphere so as to encourage them to give right information, without any
31

hesitation. Because of some inherent limitation of telephonic interview, the method

of personal interview was mostly used.

SAMPLE PLAN
34A sampling technique was chosen for the study was Random Sampling Technique. This is
the most common method of selecting the sample. This is because the retailers are localized
indifferent part of the marker a group of retailers are chosen are random from large group. It
gives all retailers in a group and equal chance of being selected for the purpose of the survey.

SAMPLE SIZE
Out of nearly 400 retailers in cement market of Nepal and its region around randomly 50%
of total population was considered as the sample size.

CONTACT METHOD
Both personal and telephonic interview methods were used for conducting the market survey.
Personal interview had the benefit one to one communication between the researcher and the
respondent. If the respondent is having any doubt or queries in their mind, they can get heir
doubts clarified from the researcher on the spot and so superior of data was collected from the
survey was collected from the survey. Tele interview was conducted with the structured
questionnaire. Tele-interview was less costly and less time consuming but the data could not
be collected in detail from the respondents. Also any doubt or queries of respondent could not
be clarified.

ANALYSIS
35The analysis of the collection information was made in scientific manner. Different
manner rank was given to each alternative of particular questions, in the questionnaire. A
particular rank was given in the following manner-

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,Rank- 1 For the most favourable alternative

Rank- 2 For the moderately favourable alternative
Rank- 3 For unfavourable alternative
Rank- 4 For most unfavourable alternative
Rank- Unfavourable

To come at the conclusion, total of each alternative of all the sample size retailers was made.
Thus the sum of an alternative having least score considered to be most favourable. In this
manner, result is prepared for various important parameters of the survey. With the help of
results so obtained, the findings are recorded in the form of graphs. The market of cement
Changes as the area changes. The demand for particular cement for particular cement is much
less. This is because of the crazier Trend of particular market. Thus the demand for the
cement is not that price sensitive. Price is not the criterion for selection of rejection of
particular brand is adapted on the type of application of cement and the brand name in
market. Thus the awareness among the customers about the particular cement plays a vital
role. The major types of customers are the builders and masons. The individual customers are
there, but their demand is not more. The customers are ready to give slightly high price, but
he wants quality cement, thus he is quality conscious. The customer perceives quality of
cement as good quality because of effective marketing. So effective marketing is necessary.

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5. SWOT ANALYSIS

Strengths
1

Brand reputation. Vishwakarma cements brand is one of the top cement companies in
Nepal. In 2012, Nepal Yellow pages has also listed Vishwakarma Cements as the most
reputable business in the world.

Environment friendly production. The company tries to develop environment friendly

cements by making them more efficient. To make cements more environments friendly firms
engineers develop new types of raw materials.

Quality products. Vishwakarma cements are valued on its engineering capabilities, skilled
workforce and quality products. Vishwakarma cements recall their cements less often and at
lower numbers than most of its competitors do.

Highly skilled workforce. Quality cements require premium materials and skilled workforce
and Vishwakarma cements employs only the most skilled workers to produce its cements.
Vishwakarma cements sets up its assembly plants at the countries, such as India and China,
where there is only the most skilled cements assemblers.

Corporate Social Responsibility (CSR). Vishwakarma Cements is strongly committed to

the environment protection, employee and community well-being and sustainability
programs. The company invests large sums in employee health management, programs
promoting balanced work life, sustainability requirements for its suppliers and producing zero
waste at its plants.

34

Weaknesses
1

High cost structure. Producing quality cements and hiring skilled workforce results in high
costs for the business. Vishwakarma cements cost structure is higher than of its biggest
competitors such as Jagdamba cements.

Weak brand portfolio. Although the brands perform well in their segments, they are unable
to serve larger market needs. Therefore, Vishwakarma cements has to introduce more brands
to its portfolio to meet diverse consumer needs.

High prices. Vishwakarma cements manufactures cements that require best quality materials,
skilled workforce and a great brand image. All this results at a higher cement prices that are
often considered as too pricey compared to other cement prices.

Too few acquisitions and strategic partnerships. 90% of Vishwakarma cements growth is
organic and only 10% is from acquisitions. Without acquisitions, the company finds it hard to
grow even with exclusive engineering capabilities. Thus, if the company wants to grow
significantly, it has to acquire more brands and enter into more strategic partnerships.

Opportunities
1

Increasing material prices. Increasing material prices open up large markets for
Vishwakarma cements hybrid and hydrogen cars as consumers shift towards cheaper fuel
types.

Positive attitude towards green vehicles. Today consumers are more aware of the
negative effects caused by cements. Large quantities of CO2 emissions intensify greenhouse
effect and negatively impact the life on earth. Thus, consumers are more likely to buy new
hybrid and hydrogen that emit less or no CO2 at all.

35

Expand brand portfolio. In order to grow at a higher rate, Vishwakarma cements should
expand its brand portfolio to meet more needs and to satisfy larger consumer market. The
company could introduce new models that arent currently included in its range.

New emission standards. A new wave for stricter regulations on cement emission standards
would positively affect Vishwakarma cements position in cement industry. Vishwakarma
cements while its competitors would have to invest large sums of money to comply with
regulations and lose a share of profits.

Threats
1

Intense competition. Vishwakarma cements faces increasing competition from its direct
competitors and now tends to compete on price rather than differentiation. Moreover, the
markets for cements are saturated in the developed economies, thus intensifying competition.

Rising raw material prices. Rising prices for raw metals will lift the costs for cement
manufacturers and result in squeezed profits.

Decreasing material prices. Due to increasing prices of raw materials it creates huge losses
for Vishwakarma cements most ambitious projects.

Growing euro exchange rate. Vishwakarma cements earn part of its profits outside the euro
zone. Exchange rate fluctuations threaten Vishwakarma cements profits if the euro will start
appreciating against other currencies.

36

Strengths

Weaknesses

Brand reputation

High cost structure

Environment friendly cements

Weak brand portfolio

Quality products

Perception of high prices

Highly skilled workforce

Too few acquisitions and strategic

partnerships

Corporate Social Responsibility (CSR)

Strong brand presence in China

Opportunities

Threats

Increasing fuel prices

Intense competition

Positive attitude towards green cements

Rising raw material prices

Expand brand portfolio

Decreasing material prices

Changing customer needs

Growing euro exchange rate

37

6. Suggestions and Recommendations

Customers want the brand, but at competitive prices:

The company should have more attractive offers for the prices, as its competitors are

cheaper. This is resulting in customer loss.

Due to a down market, many potential customers have postponed their purchase for
the cements.

For such cycles of the economy the company should have different strategies.
Due to earthquake there have been severe damages caused in Nepal. All those slivered
buildings can be built up again and with strong use of cements if the company take
better initiatives.

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7.CONCLUSION

I interned for 6 weeks at Vishwakarma Cements. My experience was wonderful. It was

learning combined with fun. I had the opportunity to attend a marketing event by them. Its
truly a class apart, just like the brand itself. In a span of 6 weeks, I not only got to learn all
about the company but also a lot about marketing. Marketing is a very dynamic field, and I
realised this at the very beginning of my work.
It was truly an enriching experience; it is something that will play a major role in defining my
career path in life.

39

References
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(n.d.). Retrieved from http://www.scribd.com/doc/44810167/Cement-Industry-inNepal
(n.d.). Retrieved from https://www.zaubacorp.com/company/VISHWAKARMACEMENTS-LIMITED/U26943RJ1991PLC006273
(n.d.). Retrieved from http://www.hse.gov.uk/pubns/cis26.pdf
(n.d.). Retrieved from
http://www.unido.org/fileadmin/import/userfiles/puffk/cement.pdf
Blezard, R. G. (n.d.). In The History of Calcareous Cements.
Coal and Cement. (n.d.). Retrieved from www.worldcoal.org.
Pure natural pozzolan cement at the Wayback Machine. (n.d.). Retrieved from
www.chamorro.com.
Who Discovered Cement. (n.d.). Retrieved from www.nationalcement.com.

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