Indian Cement Industry An Overview
1. Indian cement industry dates back to 1914 - first unit was set-up at Porbandar, with a capacity of 1000 tonnes.

2. Currently India is ranked second in the world with an installed capacity of 114.2 Million tonnes. Industry estimated at around Rs. 18,000 crores (US $ 4185 mn).

3. Current per capita consumption - 85 kgs, as against world standard of 256 kgs.

4. Cement grade limestone in the country reported to be 89 bt. A large proportion however is unexploitable. 5. 55 - 60% of the cost of production are government controlled

6. Cement sales primarily through a distribution channel. Bulk sales account for < 1% of the total cement produced.

7. Ready mix concrete a relatively nascent market in India. Installed Capacity The Indian cement industry is the second largest producer of quality cement, which meets global standards. The cement industry comprises 130 large cement plants with an installed capacity of 160.24 million tonnes and more than 365 mini cement plants with an estimated capacity of 11.10 million tonnes making a total installed capacity of 171.34 million tonnes.

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What is 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
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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 Blast Furnace Slag Cement (PBFSC): 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 blastfurnace 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 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 colour, 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.

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Specialized Cement: Oil Well Cement: is made from clinker with special additives to prevent any porosity. Page 4 .BIRLA CEMENT 5. y Rapid Hardening Portland cement: It is similar to OPC. except that it is ground much finer. y Water Proof Cement: OPC. with small portion of calcium stearate or non-saponifibale oil to impart waterproofing properties. the compressible strength increases rapidly. so that on casting.

the industry is also exporting cement and clinker. Major exporters were Gujarat Ambuja Cements Ltd. and L&T Ltd. has 10 units. which is a Central Public Sector Undertaking.35 million tonnes as against a production of 106. Page 5 .10 million tonnes per annum. The graph above shows the consumption of cement in different areas of housing. The Working Group has identified following thrust areas for improving demand for cement.28 million tonnes and more than 300 mini cement plants with an estimated capacity of 11. Keeping in view the trend of growth of the industry in previous years. registering a growth rate of 8.14 million tonnes and 6.92 million tonnes respectively. The Cement Corporation of India. The industry has achieved a growth rate of 4. Export during April-May.35 million tonnes.84%. a production target of 126 million tonnes has been fixed for the year 2009-10. infrastructure and industries. During the period AprilJune 2009.30 million tonnes. Exports Apart from meeting the entire domestic demand. The total installed capacity in the country as a whole is 159.90 million tonnes in 2007-08. The Working Group has projected a growth rate of 10% for the cement industry during the plan period and has projected creation of additional capacity of 40-62 million tonnes mainly through expansion of existing plants. Actual cement production in 2008-09 was 116. Recommendations on Cement Industry For the development of the cement industry µWorking Group on Cement Industry¶ was constituted by the Planning Commission for the formulation of X Five Year Plan. 2009 was 1. There are 10 large cement plants owned by various State Governments.BIRLA CEMENT Capacity and Production The cement industry comprises of 125 large cement plants with an installed capacity of 148.38 million tonnes.86 per cent during this period. a production (provisional) was 31. The export of cement during 2007-08 and 2008-09 was 5.

In 2006-07. which rose up to 170 MT in 2007-08. which is considered as more environment-friendly. Promotion of concrete Highways and roads. Currently.21 MT in the same month in the previous year. Further. The recommendations are under consideration. Cement Despatches Cement industry in India has successfully maintained almost total capacity utilization levels. the total despatch was 155 MT. which was almost 9% higher than the total cement despatch of 11. in order to improve global competitiveness of the Indian Cement Industry.BIRLA CEMENT (i) (ii) (iii) Further push to housing development programs. Ltd. KPMG Consultancy Pvt. which resulted in maintaining a 10% growth rate. viz. Only the rest 7% uses old wet and semi-dry process technology. The month of October 2009 saw a cement despatch of 12.24 1. The report submitted by the organization has made several recommendations for making the Indian Cement Industry more competitive in the international market.05 94. almost 93% of the total capacity is based entirely on the modern dry process.16 Page 6 Production Dispatches (Excluding Export) Export . the Department of Industrial Policy & Promotion commissioned a study on the global competitiveness of the Indian Industry through an organization of international repute. 2008-09 (Apr-Oct) (in MT) 101.46 2007-08 (Apr-Oct) in MT 95. Technology Up-gradation Cement industry in India is currently going through a technological change as a lot of upgradation and assimilation is taking place. and Use of ready-mix concrete in large infrastructure projects.22 MT.04 100.33 2.

902 15. owned by 54 major companies across the nation.BIRLA CEMENT Capacity Utilization (%) 85 93 Major Players in Indian Cement Industry There are a number of players prevailing in the cement industry in India.113 Page 7 .150 Installed Capacity 18.707 14.316 6. there are around 20 big names that account for more than 70% of the total cement production in India. The total installed capacity is distributed over around 129 plants.640 14.810 6.000 14. Production 17.680 6.174 6.300 5.649 8.434 6.550 5.115 8.531 6. Following are some of the major names in the Indian cement industry: Company ACC Gujarat Ambuja Ultratech Grasim India Cements JK Group Jaypee Group Century Madras Cements Birla Corp. However.094 13.470 5.636 4.860 17.

67% share of Sagar Cement at a cost of US$ 14. It invested US$ 1. the second largest cement company in South India.6 million in the next 2-3 years to add 10 MT capacity. It will invest US$ 463. Recent Investments in the Indian Cement Industry y In a recent announcement.2 million for that.63% stake that Grasim Industries had in Shree Digvijay Cement. Fidelity. Emerging Market Fund and Asset Management Fund have together bought 7. the company will invest US$ 2. y India Cements is going to set up 2 thermal power plants in Andhra Pradesh and Tamil Nadu at a cost of US$ 104 billion. The company utilized various open market transactions to increase its stakes.8 billion for that. The estimated project cost is US$ 221. Dalmia Cement declared that it's going to invest more than US$ 652. y Holcim now holds 56% stake of Ambuja Cement. Page 8 . y Jaiprakash Associates Ltd has signed a MoU with Assam Mineral Development Corporation Limited to set up a 2 MT cement plant. y French cement company Vicat SA bought 6. a Cement company of Portugal.1 billion. For this. ABN Amro.36 million. y Anil Ambani-led Reliance Infrastructure is going to build up cement plants with a total capacity of yearly 20 MT in the next 5 years.BIRLA CEMENT Mergers and Acquisitions in Cement Industry in India y UltraTech Cement is going to absorb its sister concern Samruddhi Cement to become biggest cement company in India.5% of India Cements (ICL) at a cost of US$ 124. Previously it held 22% of stake.91 million. has bought 53. y World's leading foreign funds like HSBC. y Cimpor.35 million. y Anil Ambani-led Reliance Cementation is also going to set up a 5 MT integrated cement plant in Maharashtra.

Assam. Andaman & Nicobar and Goa). Jharkhand and Chhattisgarh). and y Central (Uttar Pradesh and Madhya Pradesh). its bulky nature and infrastructure bottlenecks render even rail transport unviable over very long distances (that is why Madras Cements or India Cements. For instance.BIRLA CEMENT State wise Capacity As cement is a low value commodity. manufacturers tend to sell cement at the nearest market first and sell in distant markets only if additional realization is greater than freight costs incurred. Northern Region Punjab Delhi Haryana 2173. it is financially infeasible to transport cement by road over 250 kms. Orissa. Himachal Pradesh.00 Page 9 . Rajasthan. Kerala. Region wise Capacity The Indian cement industry has to be viewed in terms of five regions:y North (Punjab. However. freight costs assume a significant proportion of the final cost. Delhi. located in the south. Transporting costs render the prices of cement in distant destinations uncompetitive. South (Tamil Nadu. Chandigarh. West Bengal. J&K and Uttranchal). Meghalaya. Railways are mostly used to transport cement over longer distances. Therefore.34 500. Pondicherry. This is the reason for showing regional demand rather than state demand in case of cement. Haryana. Andhra Pradesh. y y West (Maharashtra and Gujarat).00 172. y East (Bihar. can hardly make a difference to the fortunes of west-based companies like Gujarat Ambuja). Karnataka.

00 20482.02 9744.18 19831.00 21887.00 2761.00 12913.33 21215.00 420. M.66 400.00 Page 10 .00 2291.00 23404.00 3475.68 8950.00 16299.00 16185. TOTAL 4060.20 1000.00 42908.01 11287.00 12937.34 200.P.00 6297.P.BIRLA CEMENT Himachal Pradesh Rajasthan J&K TOTAL West Maharashtra Gujarat TOTAL South Tamil Nadu Andra Pradesh Karnataka Kerala TOTAL East Bihar Orissa West Bengal Assam Meghalaya Jharkhand Chattisgarh TOTAL Central U.

BIRLA CEMENT South accounts for 33. Trade between these regions is on a very low scale mainly because of the transportation bottlenecks and uncompetitive cost of transportation. with Rajasthan at 12.5 million tonnes in FY 08-09. The Southern region dominated the cement consumption at 44. Southern region has witnessed highest CAGR of cement demand growth at 10.03% of cement production capacity of the country.94% of the total production capacity. Maharashtra and Gujarat have production capacity of 6.33% and 15. North accounts for 18.9% and 9%. with Andra Pradesh accounting for 15.96% respectively. During FY 08-09. followed by Tamil Nadu with 9.55% of the total production capacity of the country.02% of the total production capacity.89% and 9.77% of the total production capacity of the country respectively. respectively Page 11 . It has an installed capacity of around 20mn tons of cement and ranks first in the country. East and Central Regions account for 16. accounting for about 30% of total domestic cement consumption.85% of the total production capacity.27% of the total production capacity of India. West accounts for 16.4% followed by Northern and Eastern regions at 8.

dealers and sub dealers take order from buyers and place it to the companies. Incase of exports. Hence.BIRLA CEMENT Mechanics of Distribution Channels of Sector Companies invariably hire agents or transport cements to own or government warehouses either via roadway or railways. use of waterways). historically cement companies have had virtually no control on the cost or availability of these inputs. This together account for around 30% of the selling price of cement in the Indian context. Page 12 . One additional external influencer of the cement industry performance is the taxes and levies imposed by the Central and State Governments. Energy and Transport Requirements The cement industry is dependent on three major infrastructural sectors of the economy: coal. power and transport. In the second case. from agents or warehouses the cement is transported to the dealers/distributors and in turn to sub dealers who finally sell it to the end users. cement reaches the nearest port via roadways or railways and is then transferred to the importing country. Both the availability and the cost of these inputs have a vital bearing on the fortunes of the cement players. The inputs from these three sectors account for roughly 50% of the cost of cement. The shortage in domestic coal production coupled with the poor quality has resulted in cement companies resorting to importing coal. and. All these sectors are largely in the State sector. or going in for open market purchase of coal. Domestically. the industry response has largely been in the form of achieving efficiency gains and finding alternatives (captive power. or using alternative fuel such as lignite or pet coke. co ordinate and monitor the timely dispatch of said orders. There may or may not be physical ownership of goods.

Power and Fuel cost form the largest proportion of the cost structure. The control on cement for a long time and then partial decontrol and then total decontrol has contributed to the gradual opening up of the market for cement producers. The surplus position had resulted in significant pressure on price realizations in recent years.9 MT by the year 198081. This is essentially because cement industry is a very capital intensive industry. The stages of growth of the cement industry can be best described in the following stages: Price and Distribution Controls (1940-1981): During the Second World War. However. with no appreciable increase in any region. Prices The regional variation in the Indian market has resulted in the cement prices across regions witnessing movement within a band. Prices are lower in Southern regions where there is normally a supply surplus. On the other hand Employee costs form the smallest proportion of over all cost. Moreover. cement was declared as an essential commodity under the Defense of India Rules and was brought under price and distribution controls which resulted in sluggish growth. The installed capacity reached only 27. This also accounts for the huge depreciation and interest costs which accrue on the plant and machinery. This reflects the effects of the trend in rising global oil and fuel prices. Government Policies Government policies have affected the growth of cement plants in India in various stages. the labour employed is essentially semiskilled excluding the top management which brings down labour costs.BIRLA CEMENT Use of imported coal has become an essential feature of the Indian cement industry and has shown a rising trend during the last few years. Page 13 . Differences in regional demand supply situation have translated into price differences across regions. prices are higher in Eastern and Western regions where shortages exist.

Margins Cement prices have firmed up during the last few years due to improvement in demand-supply position and increasing consolidation in the industry. During FY2008-09. riding on high average sales realizations. cement prices have firmed up during the last few years due to improvement in demand-supply position and increasing consolidation in the industry.2% during FY2006-07. The WPI for March 2008-09 was 11% higher than the WPI for March 2007-08.9% during FY2007-08.BIRLA CEMENT The cyclical trough in the late-1990s had a severe impact on the industry financials. However. The Wholesale Price Index (WPI) for cement increased 3. the cement Page 14 . The trend in gross sales realization is similar for the cement companies in our sample (comprising pure cement companies accounting for around two-thirds of industry production and sales). The operating profits and margins for cement companies are most sensitive to cement sales realizations. as compared with a growth of 1.

operating income (OI) increased 24. operational efficiency and cost control Page 15 . which fluctuate depending on outlook on demand-supply gaps. The returns have improved significantly since FY2003 because of higher capacity utilizations.BIRLA CEMENT companies posted increased operating profits and margins. The fluctuating fortunes of the Indian cement industry are very typical of a commodity industry. This reversed the decline in operating profits and margins during FY2007-08. This was mainly because of excess capacity and the consequent low price realizations. The companies make bumper returns during the boom years (FY1994-96. While sales volume of the sample companies improved 7%.45 billion Returns The key driver of profitability is cement prices. and FY2005-08) while the performance goes down drastically during the lean years (FY1997-2001 and FY 2009-na). 183.2% to Rs.

77 1.243.4 16.07 7.59 15.92 1.675.60 3. ACC Samruddhi Cem.34 706. Most of the companies are making profits.8 21. OCL India Sanghi Inds.00 5.6 19.446.23 2.9 31.6 61.55 0. The Indian cement industry has undergone vital changes through technological changes in the pursuit of cost efficiency and drive for consolidations. JK Lakshmi Cem.86 10.20 6.4 29.0 27.13 2.111.89 0.16 3.53 2.44 4.29 2.0 24.43 1.90 0.70 2.61 7.55 12.33 2.14 1.0 22.07 4.94 6.3 26.4 27. in Cr.) (x) P/BV EV/EBIDTA ROE (TTM) (x) (%) (x) ROCE (%) D/E (x) Ambuja Cem. Peer Comparison Company P/E Market Cap (TTM) (Rs.98 522.091.2 19.9 0.27 3.54 2.2 32.04 0.0 24.18 847.16 3.32 0.9 40.13 6.36 1.57 1.28 10.642.66 4.36 20.7 28.8 8.68 9.10 0.447.5 34.241.49 12.00 1.00 5.2 22.50 0.86 0.4 49.82 9.6 23.22 225. UltraTech Cem.0 29.773.56 2.4 35.45 469.0 38.4 23.BIRLA CEMENT measures supplemented with higher sales realizations.32 19.58 0.06 1.40 3.01 0. But at the present scenario have reduced during the first quarter of FY 2009 and is still going to continue for few more years.2 53.4 36.87 4.11 5.96 1.57 3. Digvijay Cem 16.1 8.82 0.00 7. Shree Cement Birla Corpn. Mangalam Cement Sh.33 Page 16 .44 1.03 5.35 9.52 2.04 0.49 19.46 1.55 0.549. Prism Cement Binani Cement J K Cements Heidelberg Cem.39 0.7 17.64 2.75 2.67 8.47 4.


The India cement industry is technologically very advanced. The cement industry in India has around 300 mini cement plants and 130 large cement plants. A fair amount of clinker and cement by-products are also exported by India. accounting for around 4% of the total production. for it depends on industrial activity. and construction activity. so the difference in supply and demand is met by exporting. Page 18 . This has given a major boost to the Indian export of cement. The production of cement in India is not only able to meet the domestic demand. As the quality of Indian cement is very good. implying that Companies rely on cement exports to balance out the domestic demand supply situation. The export of Indian cement has increased over the years. As seen from above there is excess production. Indian export of cement is also increasing. real estate. The demand for cement in the foreign countries is a derived demand. Since growth is taking place all over the world in these sectors. There has been a significant year on year variation in the export trend.36 million tons. but large amounts are also exported.BIRLA CEMENT Export of cement from India The Indian cement industry exported around 6 mt of cement during FY2008-09. The total production capacity of these plants is around 167. as a result of which the quality of Indian cement is now considered the second best in the world. its demand in the international market is always high. giving a boost to the Indian cement industry.

this higher production is a good reason for exporting cement.38 million tons of cement was exported from India. 1. In 2008-2009. In 2007.36 million tons in 2007-08. This shows that the export of Indian cement has been increasing at a steady pace over the years.76 million tons of clinker was exported from India. Page 19 .47 million tons in 2006-07.2009 the figure stood at 5. That figure stood at 3. In 2006-2007.45 million tons. and 3.BIRLA CEMENT The graph shows that the production of cement in India is at 2nd place after China. 3. and in 2008.2008 clinker exports amounted to 3.64 million tons.

clay and silica into a composite mass. With 95 per cent of the total capacity based on the modern dry process technology. whereas the dry process requires only 0. Page 20 .18 tonnes of coal and 100 kWh of power. which is the Semifinished form. The mixture is then heated and burnt in a pre-heater and kiln to be cooled in an air cooling system to form clinker.28 tonne of coal and 110 kWh of power to manufacture one tonne of cement. The dry processes are fuelefficient. wet more dry and semi- Top companies in the cement industry match quite well with world standards in terms of energy (thermal energy Kcal/kg of clinker . Coal and power costs account for 35 per cent of the total cement production costs. drying and grinding of limestone.BIRLA CEMENT Indian Technology Advantage The manufacturing process of cement consists of the mixing.India 665 against 690 of Japan) and pollution norms (SPM of 40 in India against 20 in Japan). the Indian cement industry has become more cost efficient. This clinker is cooled by air and subsequently ground with gypsum to form cement. The process requires 0.


the Company continued to consolidate in terms of profitability. the Company crossed the Rs. 1300 . Lodha.3. late Chairman the M. As Chairman of the Company. Madhav Prasad Birla who gave shape to it. Birla Group. Birla Group. Incorporated as Birla Jute Manufacturing Company Limited in 1919.BIRLA CEMENT COMPANY PROFILE Birla Corporation Limited is the flagship Company of the M.2008.P. Mr H V Lodha is now Chairman of the Company. Birla Corporation Limited has products ranging from cement to jute goods.P.2006. Under the Chairmanship of Mrs. Rajendra S. PVC floor covering.3. Page 22 . Priyamvada Birla. Under his leadership. the Company posted its best ever results in the years ended 31. Mr. After the demise of Mrs. competitiveness and growth under the leadership of Mr. 31.3. of The Company continued to record impressive growth in 2008-09 and 2009-10. Priyamvada Birla. Madhav Prasad Birla transformed it from a manufacturer of jute goods to a leading multiproduct corporation with widespread activities. as well as auto trims (jute felt-based car interiors).2007 and 31. it was Late Mr.crore turnover mark and the name was changed to Birla Corporation Limited in 1998.

Birla Group Services Private Limited Page 23 .P.BIRLA CEMENT Subsidiaries          Birla Jute Supply Company Limited Talavadi Cements Limited Lok Cements Limited Budge Budge Floorcoverings Limited Thiruvaiyaru Industries Limited Birla Cement (Assam) Limited Birla North East Cement Limited New-Age Cement Limited M.

Of the sis plants. Page 24 . which has six plants with an installed capacity of 47. two each are located at Satna(M. Nearly 89% of BCL¶S turnover comes from cement division. It has also received ISO: 14001 environment management system(EMS) from bureau of Indian standard(BIS) New Delhi. The plants have access to latest technology and infrastructure and rate amongst the most advanced in the country.P) and chanderia( Rajasthan) while there¶s one at Durgapur(WB) and other at Raebareli(UP).BIRLA CEMENT Product Mix of Birla cement: The company manufactures a wide range of premium brands of cement.Germnay. Special Cements y y y y Sulphate Resistant Cement IS 12330 Low-alkali Cement Railway Sleeper Grade Cement IRS T-40 (OPC 53S) Low Heat Cement IS 12600 Birla cement production units: Cement is the flag ship division of Birla corporation limited. catering to different needs of customers.80 lakh tons. All the plants have received ISO:9001-2000 quality management system (QMS) for manufacture and supply of cement &clinker from TUV.

I) Birla Cement Samrat Birla Cement Birla Premium Cement Birla Cement Samrat Portland Slag IS 455 Cement (PSC) IS 1489 (Part .BIRLA CEMENT The Product and Brand names are as follows Units Birla Cement Works Chanderia Cement Works Products BIS Specifications Brand names Birla Cement Samrat Birla Cement Chetak Portland Pozzolana IS 1489 (Part .I) Durga Hitech PPC Cement Page 25 .I) Birla Cement IS 8043 Samrat Birla Cement Khajuraho IS 1489 (Part .IS 12269 Cement (OPC) 43 Gr.IS 8043 Ordinary Portland 53 Gr .) Birla Vikas Cement Raebareli Cement Works Durgapur Cement Works PPC IS 1489 (Part . 53 Gr Satna Cement PPC Works OPC (43 Gr.I) Cement (PPC) 43 Gr .

Improved resistance to sulphate attack  Birla cement khajuraho\chetak -43 grade y y y y y Brick and tone masonry Plastering and flooring For ready-mix concrete Plain and reinforced cement concrete Pre-cast and pre-stressed concrete Page 26 .BIRLA CEMENT Brands of cement  Birla cement samrat (special features) y y y y y Higher finesse for improved workability Resistance to alkali-aggregate reaction Low heat of hydration resulting in reduction in cracking.  Birla cement samrat PREMIUM (special features) y y y y y High compressive strength up to 57 Mpa Superfine cement for improved workability Excellent finish of mortar and concrete surface Compatible with Indian climatic conditions. Improved resistance to sulphate attack Higher long-term strength over OPC.

BIRLA CEMENT  Birla cement khajuraho\chetak-53 grade y y y y Pre-stressed girders and electric poles M 25 and concrete Roads. industrial buildings. runways. RCC bridges All types of general construction Page 27 .

BIRLA CEMENT The Various Units located across the country: State Madhya Pradesh Rajasthan West Bengal Uttar Pradesh Town Satna Units Capacity Mill.29 Works Durgapur Durgapur Cement Works / Durga Hitech 1.63 Page 28 . Ts Satna Cement Works / Birla Vikas 1.60 Cement Raebareli Raebareli Cement Works 0.55 Cement Chanderia Birla Cement Works / Chanderia Cement 2.

The level of production was maintained by procuring clinker from domestic and foreign sources.000. the Company achieved its highest ever production of cement at .00 1.00 2.00 2005 2006 2007 2008 2009 2010 P 29 .00 1.000. Uttar Pradesh and Rajasthan have performed satisfactorily in spite of stoppages related to expansion and moderni ation activities. spread over West Bengal.70 million tonnes.500.00 500. Net sales Sales (Rs. During the year 2009-10.B L E E T SALES T All t E seven cement manufacturing Units.00 0. in crores) 2. Madhya Pradesh.500.

team work and innovation. ™ Community should perceive us a progressive well professional organization.BIRLA CEMENT COMPANY¶S VISION & MISSION Birla Cement Vision ™ Customerization ™ Quality consistency ™ Product range ™ Cost competitiveness ™ Employee empowerment Birla Cement Mission: ™ To become the best cement unit in the country through human and technical excellence. We shall act and take decisions in a manner that these are fair. Page 30 . shareholders. suppliers. our partners. ™ To achieve excellence in all effort and activities by each one of us. honest and follow the highest standards of professionalism. ™ To establish a neat clean and pollution free environment. our employees. Integrity shall be the cornerstone for all our dealings. be it with our customers. participation. ™ To foster the culture of involvement. the communities we serve or the government. ™ To produce a premium quality cement and extend best service to its customers. \ Integrity We define integrity as honesty in every action.

we see commitment as doing whatever it takes to deliver as promised. teams and the part of the organization we responsible for.All We define passion as a missionary zeal arising out of an emotional engagement with work. we shall build an even sharper results-oriented culture that is high on reliability accountability. We shall recruit and actively encourage employees with a µfire in belly¶. Passion We define passion as a missionary zeal arising out of an omotional engagement with work.BIRLA CEMENT Commitment On the foundation of integrity. All of us are expected to be enthusiastic in the pursuit of our goals and objectives. With this value. which inspires each one to give his or her best. leading to superior customer satisfaction and value creation. Our commitment is likely to make us a formidable leader and competitor in every market that we are in. we hope to build a culture of innovation and breakthrough thinking. Page 31 . which inspires each one to give his or her best. Each one of us shall take ownership for our own work. Through this value.

Page 32 . imports of cement will remain negligible and do not pose a threat to domestic industry. However. cement is being imported from neighboring countries.BIRLA CEMENT PORTER¶S 5-FORCE MODEL FOR CEMENT INDUSTRY THREAT FOR ENTRANTS: The high capital costs acts as a major entry barrier for the entry of new players. making cement duty free. The high freight costs make it difficult to import cement. With GoI intervention. which makes cement imports economically unfeasible. due to logistics issues and lack of port handling capabilities. Cement being a high volume low value commodity results in high freight costs. Domestic Cement industry is highly insulated from global cement markets.

The retail buyers don¶t have any bargaining power while the institutional buyers get a discount of 5 to 10 percent as they buy cement in bulk. COMPETITIVE RIVALRY BETWEEN EXISTING PLAYERS: Previously the rivalry was strong among the players. BARGAINING POWER OF BUYERS: Retail sales constitute about 80 percent of the total sales and the rest is institutional sales. During the last few years the industry has become more consolidated with the Top 3 players having a combined market share of 49 percent in 2008-09 as compared to 32 percent in 2007-2008.BIRLA CEMENT BARGAINING POWER OF SUPPLIERS: The major inputs are coal and power. To mitigate the high costs of power the cement players have set up captive power plants. The Prices of both coal and power are determined by the government. THREAT OF SUBSTITUTES: There are no good substitutes for cement. Page 33 . as the industry was not consolidated.


B R Nahar Page 35 . D N Ghosh Mr Deepak Nayyar Mr M K Sharma Mr. Its Board of Directors comprises: Mr. Vikram Swarup Mr. Kejriwal Mr. Harsh V. K.BIRLA CEMENT The Board of Directors The Birla Corporation Private Limited is the Group's apex decision making body and provides strategic direction to Group companies. Pracheta Majumdar Mr. Anand Bordia Mr. N. Lodha chairman Mr. B B Tandon Mr.

5.BIRLA CEMENT ORGANIZATION¶S DIFFERENT FUNCTIONAL DEPARTMENTS Finance Department Finance is backbone of any organization without which no organization can undertake any activities concerning the organization.89 crores) in the previous year. 35%) on ordinary shares for the year ended 31st March.6. It is dynamic and changing.3. The funds have been utilized for general corporate purposes. Thusthe aggregate dividend for the year ended 31st March.370 crores on private placement basis. 25%) on ordinary shares during the year. DIVIDEND The Company has paid an interim dividend of Rs.e. The Company has raised funds through issue of Secured Redeemable NonConvertible Debentures aggregating to Rs. This has to be managed actually to yield long term results. It deals with all the facts of Business-production.50 per share (i.50 per share (i. Your Directors are pleased to recommend a final dividend ofRs.54 crores (including Corporate Dividend Tax of Rs. personnel etc.75 crores as compared to Rs.53.95 crores including Corporate Dividend Tax of Rs. Page 36 . 2010.2. Finance necessary is accumulated for the starting of company and then they are at a later stage allocated to all the facts of business as mentioned above as per requirements specified in the financial policy.7. 2010 works out to Rs.00 per share(60%) aggregating to Rs.40. It is a fascinating subject that deals with end result and these end results are measurable in terms of money. sales. purchasing.e.


Marketing Department

MARKETING MANAGEMENT PROCESS ADOPTED BY BIRLA CORPORATION In the field of marketing management process, it basically consists of four steps: 1. Analyzing marketing opportunities 2. Selecting target markets 3. Developing the marketing mix 4.Managing the marketing effort

MARKETING RESEARCH AT BIRLA CEMENT Marketing research is a systematic gathering recording and analysis of data about the problems relating to the marketers of goods and services. Thus it includes investigation of market, segments, and products. The market research answers the questions in respect of different markets. The areas of market research are:

‡ Determining the size of both current and also potential market. ‡ Assessing the market brands. ‡ Ascertaining the strength and weakness of competitors. ‡ The current contemplated legislations of the government towards the particular product, including taxation policy ‡ Demand and sales forecast

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Human Resource Department
Human Resource Management is a process of creating and providing opportunities to the members of a company for developing and optimally utilizing their potentials in various productive works. It is also the management of human resources in an organization and is concerned with the creation of harmonious working relationship and bringing about their utmost individual development. The main objectives of personnel function are to create attitude that motivates a group to achieve its goal economically and speedily. The Company had 9954 employees on its rolls as at the close of business hours on 31stMarch, 2010. Relations with the employees were cordial at all the Units barring suspensionof operations since 29th March, 2004 at Soorah Jute Mills and a strike for 62 days from14.12.2009 to 13.02.2010 by the workers of Birla Jute Mills in response to the strike call given by the Central Trade Unions and the Federation of Trade Unions operating in the jute mills in West Bengal.

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Research & Development Department

Research & Development Department is the back-bone of an organization. It helps the organizations in developing new products and means to meet the need of customers in an effective way. It also shows how open is an organization towards the change. In Birla following functions are done by the R & D department:

y Able to meet customers enhanced requirements above R & D y Able to meet shorter turnaround times demanded by customer y Automated tools helped to meet extra volume of production and new customer

y Maintaining leadership as a technologically advanced supplier y Customized Production & Project Management tools development for customers y Able to acquire new projects which involves project management y Providing value added services to the customers and bringing-in additional projects. y Introducing new workflow and systems as per customer¶s requirements

Supply Chain Department
The team orders and maintains the inventory of stock keeping units so that unit does not run out of critical supplies at any point.

The team also ensures that all stock keeping units of items used in the unit are received at stores from vendors and distributed to the different outlets on time. Other functions include:

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transportation. delivery scheme (e. Distribution Strategy: Includes functions of operating control (centralized. inventory. Information: Integration of and other processes through the supply chain to share valuable information.BIRLA CEMENT Distribution Function Configuration: Number. DSD (direct store delivery).. decentralized or shared). forecasts. pool point shipping. location and network missions of suppliers. work-inprocess and finished goods Page 40 . and potential collaboration etc. Cross Docking. direct shipment. cross-docks and customers. warehouses. including demand signals.g. distribution centers. production facilities. Inventory Management: Quantity and location of inventory including raw materials.

BIRLA CEMENT SWOT ANALYSIS STRENGTHS: y Cement demand has grown in tandem with strong economic growth. housing facilities and Mega Power Projects. Page 41 . growth in the cement consumption is anticipated to continue in the coming years. power projects. -Infrastructure projects like ports. dam and irrigation projects -National Highway Development Program -Bharat Nirman Yojana for rural infrastructure -Rise in industrial projects -Export potential also demand driver y Capacity utilization over 90% WEAKNESS: y y y Cement Industry is highly fragmented Industry is also highly regionalized Low ± value commodity makes transportation over long distances un-economical OPPORTUNITIES: With the boost given by the Central Government and the private sector to various infrastructure projects. airports. road network. derived from: -Growth in housing sector (over 30%) key demand driver.

BIRLA CEMENT THREATS: y y Government intervention to adjust cement prices Possibility of over bunching of capacities in the long term as some of the players have already announced new capacities y y Transportation cost is scaling high. bottleneck due to loading restrictions Coal prices climbing up. industry players say current shortage of coal in the country is estimated to be over 10 million tones. Page 42 .

picked up from more than25.BIRLA CEMENT AWARDS FOR BIRLA CORPORATION The Company has been included in the prestigious "Best under a Billion" list by Forbes and is one of the 20 Indian companies featured this year. Page 43 .326 publicly-listed firms with sales of less than $ 1 billion in the Asia-Pacific region. The recognition came at a very opportune time for Birla Corporation Limited since it is one of the oldest cement manufacturing companies in India and is currently celebrating 50 years in the cement business. Birla Corporation Limited has been selected by the editors of Forbes as one of the best companies with revenues of less than $ 1 billion based on its track record of consistent profitability. The fifth annual "Best under a Billion" list comprises the top 200 companies. . growth and best corporate practices over a three-year period.

AWARDED BY New YEAR UNIT Best Energy Performance NCB. Fuller Energy Conservation M. Best Productivity Award National Productivity 1987-88 BVC Council.P. AWARDS 1. New Delhi Page 44 . Award Delhi and 1986-87 BVC Ministry of Power Govt. Chamber of Cement 1997-98 SCW Award Manufactures Association. 1993-94 SCW of India 1994-95 SCW 1995-96 SCW 1996-97 SCW 1997-98 SCW 2. NO. 1998-99 SCW 1999-00 SCW 2001-02 SCW 1997-98 BVC 1998-99 BVC 3.BIRLA CEMENT AWARD EARNED BY SCW AND BVC S.

Germany Since July 1994 Renewed every year SCW BVC & 7. Export Award CAPEXIL.BIRLA CEMENT 4. Kolkata 1990-91 BVC 1991-92 BVC 1993-94 SCW 1994-95 BVC 1996-97 BVC 1997-98 BVC 2001-02 BVC BVC & S. ISO-9001 Management for quality RWTUV. National Safety Award Ministry Of Labour. New Delhi Since Sept. IS / ISO-14001 for BIS. 1999 Renewed every 3 year SCW BVC & Environment Management Page 45 . Govt 1994 of India BVC 6. NO. AWARDS AWARDED BY YEAR UNIT 5.

Sagmania Award Mines Safety DGMS 1997-98 9. Dhanbad 1997-98 2002-03 conservation Overall Performance 10.BIRLA CEMENT 8. Mines Mineral Environment & ISM. Best Energy Conservation Implementation Award Gold Rajiv Gandhi Memorial Oct 2004 SCW National Award Page 46 .

television. and seminars.Any paid presentation and promotion of ideas. self-liquidating premiums.Media and non-media marketing communication are employed for a pre-determined. price. sales training and incentive programs for intermediary salespeople. radio. or persuading a potential buyer's purchasing decision. sales meetings. y Sales promotion . trade-ins. Examples: Newspaper and magazine articles/reports. goods. trade shows. y Personal Selling . Web pages. direct mail. service. brochures and catalogs. and emails. or business unit by planting significant news about it or a favorable presentation of it in the media.BIRLA CEMENT Introduction Promotion Promotion is one of the four elements of marketing mix (product. banner ads. and exhibitions. issue advertising. promotion. informing. contests. stimulate market demand or improve product availability. It is the communication link between sellers and buyers for the purpose of influencing. signs.A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation. Can be face-to-face or via telephone. samples. charitable contributions. billboard. TVs and radio presentations. Examples: Coupons. and telemarketing. y Public relations . or services by an identified sponsor. rebates. There are seven main aspects of a promotional mix these are: y Advertising . distribution). Examples: Print ads. tie-ins. posters. motion pictures. limited time to increase consumer demand. product samples. Page 47 . speeches. Examples: Sales presentations. sweepstakes. in-store displays.Paid intimate stimulation of supply for a product.

and let potential buyers try the product.are try-outs. If the reputation of a company is bad. Direct Marketing is often listed as a the fifth part of the marketing mix Exhibitions . consumers are less willing to buy a product from this company as they would have been. this way. y y Page 48 .BIRLA CEMENT y Corporate image .The Image of an organization is a crucial point in marketing. your competitor can see exactly what you are doing. you know directly what people see in your product. The downside. You make your product. if the company had a good image.

BIRLA CEMENT Marketing mix 4 P¶s of marketing mix comprises of: y y y y Product Price Place Promotion Page 49 .

Direct marketing 5. Personal selling Page 50 . This module explains how you can establish a promotional mix best suited to your company's needs and resources. Sales promotion 4.BIRLA CEMENT How to Establish a Promotional Mix You drive sales by promoting the benefits of your company's goods or services to pools of potential buyers. Advertising 2. The ways you promote your organization will largely determine whether you successfully plant the right messages in the minds of your target audience. y y y y y y y Determine Your Target Market Determine Your Objectives Design Your Message Select Your Promotional Channels Determine Your Budget Determine Your Promotional Mix Measure the Results and Adjust Elements of promotion mix A promotional mix is an allocation of resources among five primary elements: 1. Public relations or publicity 3.

is A push the where manufacturer concentrates some of their marketing effort on promoting their product to retailers to convince them to stock the product. hence the name. The product is pushed onto the retailer.BIRLA CEMENT Strategies of promotion mix Push & Pull Strategies Communication by the manufacturer is not only directed towards consumers to create strategy demand. A pull strategy is based around the manufacturer promoting their product amongst the target market to create demand. A combination of promotional mix strategies are used at this stage aimed at the retailer including personal selling. and direct mail. Organisations tend to use both push and pull strategies to create demand from retailers and consumers. Page 51 . Consumers pull the product through the distribution channel forcing the wholesaler and retailer to stock it. hence the name pull strategy.

through promoting features. Think. - As products move through the four stages of the product lifecycle different promotional strategies should be employed at these stages to ensure the healthy success and life of the product. Promotion through the Product life cycle.BIRLA CEMENT Communication Model ± AIDA AIDA is a communication model which can be used by firms to aid them in selling their product or services. When a product is launched the first goal is to grab attention. Interest. Action. Introduction Page 52 . Desire. how can an organization use it skills to do this? Use well-known personalities to sell products? Once you grab attention how can you hold Interest. Stages and promotion strategies employed. how can you make the product desirable to the consumer? By demonstrating it? The final stage is the purchase action. clearly stating the benefit the product has to offer? The third stage is desire.. if the company has been successful with its strategy then the target customer should purchase the product. AIDA is an Acronym for Attention.

coupons etc may be used to push the product through the introduction stage of the lifecycle. Push and Pull Strategies will be used at this crucial stage. radio. Maturity At this stage with increased competition the organisation take persuasive tactics to encourage the consumers to purchase their product over their rivals. magazine.BIRLA CEMENT When a product is new the organisations objective will be to inform the target audience of its entry. Any differential advantage will be clearly communicated to the target audience to inform of their benefit over their competitors. Television. Decline As the product reaches the decline stage the organisation will use the strategy of reminding people of the product to slow the inevitable Page 53 . Growth As the product becomes accepted by the target market the organisation at this stage of the lifecycle the organisation works on the strategy of further increasing brand awareness to encourage loyalty.


To determine the impact of advertising in sale of Birla cement. Page 55 . Whether there is relation between advertising and sale of cement. To determine methods to generate brand loyalty. Secondary objectives y y To determine the promotional tools applied by Birla cement.BIRLA CEMENT STATEMENT OF THE PROBLEM ³Analysis of promotional strategies in Birla cement factory´ Objectives: Primary Objectives y y y To analyze market share of Birla cement with its competitors at Satna region.

The first stage included gathering information about the general cement market of the two regions. what type of incentive schemes the different brands are using. The second stage comprised determining the objective of the study and drafting the questionnaire.customers Sample size. to find out which are major players.convenience technique RESEARCH DESIGN (a) General Methodology: The methodology adopted for this project was completely base on primary information. b) Data Sources: The research called for gathering primary data only.´ Sampling Design y y y y Sample universe ± Satna Sampling unit. The questionnaire was designed keeping in mind the objective of the study. It was designed with due guidance of the company guide. Primary source The primary data is gathered for specific purpose and is collected by the researcher himself. primary sources were considered for the collection of data. It was assured that the questionnaire didn¶t exceed more than 10 questions. That was.14 customers Sampling technique.BIRLA CEMENT HYPOTHESIS ³Success of Birla cement is directly related to its promotional strategy. For the purpose Page 56 . It includes direct communication and feedback from the customers. what is general promotion pattern. Hence.

Unstructured interview For the purpose of this project. A pilot test of this questionnaire was done for the preparation of final questionnaire. A survey technique was used to collect the data. Structured interview 3. we went for a questionnaire based survey of customers. a questionnaire was designed to collect data that consisted of close ended questions & open ended questions. (d)Research Instrument: 1. wrongly worded or in any way objectionable. This was done to ascertain which questions are ambiguous. The tools that have been used are as follows:  Bar Chart  Pie Chart  Line Graph Page 57 . During the project a survey of customers was done at random Analytical tools: The data. It involved. applying the draft questionnaire to a sample of 5 people. The analysis performed was mainly comparative analysis using statistical analytical tools. For the purpose of this project.BIRLA CEMENT of collecting information from customers a structured questionnaire was formulated and is contacted directlc) Research Approach: The research conducted was exploratory in nature and the goal was to gather preliminary data to shed light on the real nature of problems and to suggest possible solutions. which was collected. Personally administered questionnaire 2. was summarized and tabulated on MS-excel for further analysis.

company manuals. Documents and Websites. Page 58 . Journals. Magazines.BIRLA CEMENT SECONDARY DATA Secondary data was collected through close observation.

UltraTech Cem. The main reason behind this excess market share goes to the higher number of dealers of Ambhuja cement than other brands. P 59 . in Cr. Prism Cement Shree Cement Ambuja Cem. followed by ACC. All the other brands like Birla . Prism and Shree are struggling to find market in India. ACC Samruddhi Cem. Cement.) Birla Corpn.BIRLA CE ENT DATA ANAL SIS & FINDINGS Comparative Market share capital of top 7 Cement companies in India Market Cap (Rs. Ultratech Cement on the other hand is having a good market share due to a nicely balanced supply chain of dealers along with many retailers. The graph clearly shows that the Ambhuja Cement has largest market share.

Its success lies in promotional strategies adopted at Satna. The credit for Prism success goes to the no.) 23% 44% Prism Cement JP Cem Birla Cements 33% The graph shows that the Prism is again surpassing JP & Birla cement in Satna(Central region).BIRLA CE ENT Comparative sales of Top 3 Cement companies in Satna region Marke a (R . of dealers it has in Satna(central region). It has a scorching 44% share. i r. P 60 .

P 61 .BIRLA CE ENT Are y u bra d c ci u ? Yes No Sometimes This graph clearly shows that people are now much more brand conscious and very few like to shift to other brands.

which promotional tool o o think is most important? 50 40 30 20 10 0 Advertising Sales Promotion Personal selling Publicity This graph clearly shows that most of the buyers prefer advertising followed by sales promotion.BIRLA CE ENT As a er. P 62 .

            P 63 .BIRLA CE ENT If o think Birla Cement Co nee s improvement in what respect sho l the improvement e? Quality Price Pr m ti n Distributi n All f the ab ve This graph clearly shows that Birla needs improvement and it should improve on its promotion strategy at Satna region to gain maximum share at Satna Birla should improve its marketing strategy.

P 64 .BIRLA CE ENT Do o think that a ran am assa or ing ecision in wo l infl ence o r favo r of a partic lar ran of cement? No Yes This chart shows that brand ambassador plays important role in buyi g particular cement as JP n has Sachin Tendulkar as brand ambassador Birla should also think in this respect.

Like who is the main dealer. Some of the respondents may have told they prefer promotion and were much conscious for their brands. Like they didn¶t talk much about what problems they are facing. 3. The major problem of the survey was that most of the respondents being very loyal to their brands didn¶t give exact answers. this survey demands a good piece of time while talking to the respondent.BIRLA CEMENT LIMITATIONS OF THE STUDY 1. we need to restart the conversation in a much generalized way and talk about the local market conditions. it is quite possible that I was unable to explore some of the dealers/customers. 5. Many of the dealers/customers refused to answer any question at all. which cement is mostly sold in that area etc. Page 65 . Once we got the questionnaire filled. what are the different marketing schemes of the brand in which they deal etc? 2. Being a very big region. So the actual figures can be somewhat different from the one that we have found out.

They need to increase the no. This should not be permitted by Birla . so the cement selling becomes less important for these dealers. of retailers as much as possible. useful suggestions of the dealers &customers and the findings from the survey. y y y The number of retailers and sub dealers for Birla cement is equal to the main competitor¶s Prism. Etc. JP. y Many of the Birla dealers used to shop other type of building materials along with cement. in the same shop.Because selling of these building materials is more profitable than cement. They don¶t give proper attention to the Page 66 . The second thing is that particular at Satna region Birla is after Prism and JP and it does not try to capture its market share at Satna due to its poor promotional strategy. following recommendations can be suggested for increasing sales and effectiveness of MP Birla Cement: What matters for most of the cement buyers is the price of the cement and then the quality as well as promotion.BIRLA CEMENT SUGGESTIONS Based upon the time spent by me in the market. So Birla needs to be oriented in this direction. While visiting to market buyers not only look price also their personal touch matters a lot and Birla need to improve because most of respondents tells Birla does not care in maintain relations with customers so it should improve their customer relationship management.

BIRLA CEMENT company officials and also to the various schemes of increasing sales. they are not the cement buyers at present but future possibility lies with them. This in turn brings reduced sales to the company. So Ultra Tech needs to give proper attention to the youngsters. It¶s mainly the younger section of people who care about quality first and then the price. May be. Page 67 . y Some of the customers complained that they are not paying attention in personal selling and main competitor of Birla is Prism as Prism is much more into maintaining relations with its customers. y Birla should also improve working conditions for their factory workers as they are not satisfied with their working condition so they in turn do negative publicity. It should try to encase this image. y Birla Cement has market image of modern cement with very good quality.


contact no. Some of these methods are as below: y Local cable T. What we can do in this case is to take help of Handvertising i. different schemes. we can also try to attract the customers directly. So that next time they saw this logo.painting walls.There are still many possible methods of advertisement and creating brand awareness. we need to put the Birla cement logo on the hands of these masons. scratch cards etc can be made available for the customers. Most of the masons are very less educated. small free gifts. which are untouched. We can think about using banners on rickshaws and autos also. of the dealer. So it may become difficult for them to recognize a particular cement brand. giving free gifts to the dealers and masons etc. Details like address. y Different type of incentive schemes. dealer¶s shop and on walls only. paintings are used mainly on the tractor trolleys. can be used for advertising as well as to give details about the major dealer/dealers in the city. As a change. free gifts are mainly for dealers and sometimes for the masons. they found themselves be familiar with the company. y Banners.BIRLA CEMENT POSSIBLE ADVERTISEMENT METHODS All of the cement brands use the similar methods of advertising like. For exdiscount coupons. current market price etc can be shown.V. use banners. They attend many meetings.e. Page 69 . y A number of meetings are organized by all the cement companies with the local masons.

Page 70 . of people. This needs some improvements.officials. What we can do is that organize a big meet with a no. We need to decrease the frequency of these meets. We need to call some big personalities from that city only. The presence of company officials in the meeting is not alone sufficient.BIRLA CEMENT y The µmasons meet¶ are organized by the company regularly. higher company officials. y A mobile service provider can be undertaken in a contract and a buzz about the company and its awareness can be made by sending regular message to their distributors. The people like these masons are more impressed by the presence of Govt. entertainment. and snacks for all.

Introduction of new attractive incentive schemes can bring new dealers and retailers for BIRLA cement. The company can face a lot of competition in near future due to introduction of many more competitors. Brand ambassador has also influence in sale of cement for ex sachin tendulkar of JP cement. Page 71 . BIRLA CEMENT is well established in the markets as far as quality is concerned. of dealers.BIRLA CEMENT CONCLUSION y y y y y y y y Birla cement has two major competitors-PRISM CEMENT and JP CEMENT. Price &promotion are the major factors that matters for a customer while purchasing cement Market share increases with the increase in no. Birla cement follows exclusivity policy thus giving them a very narrow number of outlets.

BIRLA CEMENT ANNEXURE QUESTIONNAIRE I. Thank you. What attributes of the product / company motivates you to buy the above brand of cement? Page 72 . P. 1. All Information collected will be used for academic purposes only. am undertaking a Research Study on ³Analysis of the Promotional strategies in MP Birla cement´ and would therefore require your help in filling this questionnaire (?). Jaya Janwani of M. Are you brand conscious? o Yes o No o Sometimes 3. Which company¶s cement do you buy most? o Birla cement o ACC cement o JP cement o Prism cement o Others (Please state the name of the company) 2. Birla Institute of Management.

What is your annual consumption of cement? o 10 bags o 20 bags o 30 bas o More than that 6.BIRLA CEMENT o Quality o Pricing o Advertising o Delivery o Satisfaction o All of the above 4. How often do you buy cement? o Yearly o Quarterly o o Monthly Weekly 7. In a scale of 1 to 5. How much are you satisfied with the above brand of cement? o Highly satisfied o Satisfied o Moderately Satisfied o Dissatisfied o Highly dissatisfied 5. rate the following aspects of the product as per their relative importance to your company (5 for max importance) o Cost Page 73 .

As a buyer.BIRLA CEMENT o Quality o promotion o Delivery o Innovation 8. which promotional tool do you think is most important? o Advertising o Sales Promotion o Personal selling o Publicity 9. How is Birla Cement¶s customer relationship management? o Good o Best o Average o Poor 11. Do you think that a brand ambassador would influence your buying decision in favour of a particular brand of cement? o Yes o No 10. If you think Birla Cement Co needs improvement improvement be? o Quality o Price o Promotion o Distribution in what respect should the Page 74 .

BIRLA CEMENT o Any other o All of the above Page 75 .

BIRLA CEMENT BIBLIOGRAPHY Books  Elements of Marketing .Philip Kotler  Research Methodology And Techniques .com  www. com  www. Birla corporation.cement.wikipedia.R.Philip Kotler  Marketing Management ± K Ramachandra  Research Methodology ± Krishnaswamy  Marketing Management Page 76 .Kothari Magazines   Aditya Journals Web sites  www.

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