EXECUTIVE SUMMARY

Practical work plays a very significant role in the field of management. Shri keshav cements & infra ltd is one of the leading manufacturer of cement industry in Kaladgi, Bagalkot District. It is a public limited company incorporated in the year 1993. formerly it was known as Katwa Udyog Limited. The companies shares are are actively traded in Mumbai stock Exchange(BSE). The company manufactures 43 & 53 Grade Ordinary Portland Cement. In todays scenario infrastructure is in a boom so the engineering & construction work is carried out rapidly for that the main raw material required is Cement. In & around Bagalkot city there are many cement industries & which leads to huge competition in the cement industry mainly in Bagalkot city. So it is necessary to study the Advertisement & sales promotion activities & to adopt the effective Advertising & sales promotion strategies to increase the sales & beat the competitors. The study will enhance my knowledge about how the advertising & sales promotion activities plays a very vital role in Cement industry to attract the customers & increase the sales of the company. what competitive Advertising & sales promotion strategies should the company adopt to beat the competitors. OBJECTIVES: 1 To identify the Advertisement & Sales promotion activities adopted by the Keshav Cements & Infra Ltd 2 3 4 To know the brand awareness level of Keshav Cements To know the effectiveness of Advertisement on customers To know the rivals Advertisement & Sales promotion strategies

5 The factors that influencing customers to purchase the cement

Here are some of the findings for the objectives given above which will be very useful to the company; I found from secondary data that Trade shows, Trade allowances & Contents & Incentives & Wall paintings & Print Media these are Advertisement & sales promotion Activities adopted by Keshav cements. It is found that only 54% of the respondents are Aware of the Keshav Cements brand & 46% of them are not Aware of the Keshav Cements brand. 86% of the respondents says that Advertising plays a very vital role in purchasing competitors brand cement. it is very effective while purchasing competitors brand cement. It is found that 80% of the respondents are come to know about the competitors brand through the sources of Advertisement,17% through Sales person. It is found that 58% of the respondents seek Discounts/offers from the competitors brand, & 27% of the respondents seeks Price offs. It is found that 80% &10% of the respondents look after Quality, Easily availability while purchasing competitors brand cement.

It gives me immense pleasure to present before you this entire project.

INTRODUCTION OF CEMENT

The word CEMENT is a binder, a substance which sets & hardens independently, & can bind other materials together. The word cement is derived from the Roman language opus caementicium to describe masonry which resembled concrete & was made from crushed rock with burnt lime as binder. Later it referred to as; cementum, cimentum, cament & cement.

Cement is a chemical compound existing of lime stone or chalk, clay, sand, & gypsum to form the end product we know as cement. Cement used in construction are characterized as hydraulic & non hydraulic cement. Cement is mainly used in the production of mortar & concrete- the bonding of natural or artificial aggregates to form a strong building material which is durable in the face of normal environmental effects. Cement should not be confused with concrete as the term cement explicitly refers to the dry powder substance. Upon the addition of water & or additives the cement mixture is referred to as concrete, especially if aggregates have been added.

It is uncertain where it was first discovered the hydrate & non hydraulic cement, but concrete made from such mixtures was first used on a large scale by Roman Engineers. In the 18th century a big effort started in Europe to understand why some limes possess hydraulic properties. John smeaton often referred to as Father of Civil Engineering in England concentrated his work in this field. James parker in the 1780s, founded the Natural cement made by burning septaria. The invention of port land cement is generally credited to Joseph Aspedin an English bricklayer in 1824. In 1838 a young chemical Engineer Isac Johnson burned the cement raw material at high temperature until the mass was nearly vertified producing the modern Portland cement. The German chemist Wilhelm michaelis proposed the establishment of cement standards in 1875. the use of concrete in construction grew rapidly from 1850 onwards, & was soon the dominant use for cements. Thus Portland cement began its predominant role. Types of cement: 1) Portland cement 2) Portland cement blends Portland blast furnace cement

 Portland fly ash cement Portland pozzolan cement Portland silica fume cement Masonry cements Expansive cements White blended cements Colored cements Very finely ground cements 3) Non Portland hydraulic cements Pozzolan-lime cements Slag-lime cements Super sulfated cements Calcium aluminate cement Calcium sulfo aluminate cement Natural cement

Indian Cement industry The cement industry is experiencing a boom on account of the overall growth of the Indian economy primarily because of increased industrial activity, flourishing real estate business, growing construction activity, & expanding investment in the infrastructure sector. The performance of the industry, under different policy regimes, truly establishes that decontrol of the industry & liberalization of the economy has led to remarkable improvement in the indicators such as installed capacity, capacityutilization, per capita consumption & exports. . Cement is an essential component of infrastructure development & most important input of construction industry, particularly in the governments infrastructure & housing programs, which are necessary for the countrys socioeconomic growth & development. It is also the second most consumed material on the planet. The Indian cement industry is the second largest producer of cement in the world just behind China, but ahead of the United States & Japan. It is consented to be a core sector accounting for approximately 1.3% of

GDP & employing over 0.14 million people. Also the industry is a significant contributor to the revenue collected by both the central & state governments through excise & sales taxes.

The Beginning of Indian Cement Industry The attempt to produce cement in India dates back to 1889 when a Calcutta firm attempted to produce cement from Argillaceous (kankar). In 1914 the first commissioned

cement-manufacturing unit in India was set up by India Cement Company Limited at Porbandar, Gujarat, with an installed capacity of 10,000 tonnes & production of 1000 tonnes. Subsequently two plants; one at Katni (M.P.) & another at Lakheri (Rajasthan) were set up.

The problem of supply outstripping demand was significant in early period of the industry. This was followed by a price war between the producers where they resorted to cutting down of prices & selling at below production cost.

It was then when the government of India intervened into the market & referred the cement industry to the Tariff Board. All these events resulted in formation of Indian Cement Manufacturers Association in 1925 whose main function was to regulate prices in the industry. In 1927, Concrete Association of India was formed whose two main objectives were to educate public about the use of cement & to play an active role in popularizing Indian cement. The next step in the direction of rescuing cement industry was the formation of Cement Marketing Company of India Limited in 1930 to promote & control the sale & distribution of cement at regulated prices.

In 1936, eleven companies, except Sone Valley Portland Cement Company Limited, merged to form Associated Cement Company Limited (ACC). In 1937, Dalmiya Jain Group set up five factories with installed capacity of 575000 tonnes & ACC added four more plants.

The price & distribution control system on cement, implemented in 1956, aimed at ensuring fair prices to producers & consumers all over the country, thus reducing regional imbalances, & at reaching self-sufficiency within a short time period (Schumacher & Sathaye 1999). In spite of the fact that government exercised no control over the Indian cement

industry all through the Third Five Year Plan (1961-1967), growth was low due to inadequate retention price & lack of adequate financial resources to the existing companies

Control Period (1969-1982) The Indian cement sector had been under strict government control for almost the whole of the period. During this period, many companies & their plants started off but still growth was not seen at the desired rate. In 1977, higher prices were allowed for cement produced by new plants or major expansions of existing plants. Due to maintained slow development, the uniform price imposed by the government, was substituted by a three-tier price system in 1979. Different prices were assigned to cement produced in low, medium & high cost plants.

Thus, controlled price did not reflect the true economic cost, & profit margins reduced increasingly, preventing essential investments in capacity & production expansion. A permit system introduced by 14 states & union territories in the period comprised direct control over public distribution of cement to ensure fair supplies to priority sectors. However, the system resulted in artificial shortages, extensive black marketing & corruption in the civil supply departments of the government.

The system of price control was accompanied by a policy of freight pooling. The price control fixed a uniform price according to estimated production costs at which cement was required to be sold all over the country. This freight pooling system promoted equal industrial development all over the country. It supported regional dispersion.

Partial Decontrol (1982-1989) On account of the above-mentioned difficulties in the cement industry the government of India introduced a system of partial decontrol in 1982. A levy quota of 66.60 % for sales to government & small house builders was imposed on existing units while for new & sick units a lower quota at 50% was established. The balance of 33.40% could be sold in the free open market to general consumers. A ceiling price was set for sales in the open market in order to protect consumers from unreasonably high pricing of cement. Under the system of partial decontrol, freight pooling no longer covered non-levy cement. Furthermore, specific mini units

were completely freed from price & distribution controls. Although overall profitability increased substantially immediately after the introduction of partial decontrol, profits obtained through non-levy sales decreased with greater availability of cement in the market & continuously rising input costs.

To sustain an accelerating course, the government subsequently introduced changes in levy obligations & retention prices regularly. As a result, in 1988 the levy quota was as low as 30% for units established before 1982 & the retention price had increased substantially. In 1987, the Cement Manufacturers Association & the government decided that there was no further necessity for a maximum price ceiling.

Total Decontrol (1989 onwards) Finally in 1989, the cement industry was considered to be prepared for free market competition, & all price & distribution controls on sale of cement were withdrawn. The system of freight pooling was abandoned & a subsidy scheme to ensure availability of cement at reasonable prices in remote & hilly regions of the country was worked out. The industry was then de-licensed in July 1991 under the policy of economic liberalization. By removing all controls on the cement sector the government hoped to accelerate growth & induce further modernization & expansion investments. It was after this decontrol that the Indian cement industry moved towards globalization, with increasing emphasis on the exports. The expansion of the industry was evident after the decontrol where capacity as well as production increased many fold. Growth was seen from 91 plants and 43 million tonnes of production in 1989-90 boosting to 132 plants & 161.66 million tonnes production in 2006-07 (CMA 2007). Total capacity utilization for the industry has also increased from 78% to 91% during the same period.

Hence, the history of the Indian cement industry indicates the role of government played in influencing the twists & turns in the industry. It might be noted that government interventions have been a mix of fiscal instruments & direct control on production, pricing & distribution on the one hand & technological intervention through government promoted research institutions on the other hand.

ACGR of Primary Performance Indicators (%)

Indicators Total Period Control Period (1970-71 to 2006- (1970-71 to 1987-88) 07) Installed Capacity Production Capacity Utilization Exports Per Capita Consumption 7.28 7.39 0.10 13.10 5.15 7.47 6.69 -0.73 -5.52 1.11 Decontrol Period (1988-89 to 200607) 7.09 8.09 0.93 35.38 9.35

Trend in Primary Performance Indicators of the Indian Cement Industry

Year Installed Capacity (Million tonne) Production (Million tonne) Capacity Utilization(%) Export (Lakh tonne) Per Capita Consumption (Kg.)

1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

97.25 105.25 109.30 118.97 119.10 130.40 146.13 151.17 157.48 164.69

69.57 76.22 83.16 87.91 100.45 97.61 108.40 116.35 123.50 133.57

71.54 72.42 76.08 73.89 84.34 74.85 74.18 76.97 78.42 81.10

15.70 19.70 26.80 20.60 19.50 31.50 33.80 34.70 33.63 40.71

72 78 82 85 97 99 97 106 110 115

2005-06 2006-07

160.24 165.22

141.81 155.31

88.50 94.00

60.07 58.70

125 136

Regional Concentration Cement, being a bulk commodity, is freight intensive & transporting cement over long distances can prove to be uneconomical. This has resulted in cement being largely a regional play with the industry divided into five main regions, viz., North, South, West, East & the Central region. Until 1999-2000, Indian was divided in only four regions; centre came up only after that. Punjab, Rajasthan, Haryana & Himachal Pradesh fall in northern region whereas Bihar, Jharkhand, Orrisa, West Bengal & Chattisgarh are in eastern region. The west comprises of Gujrat & Maharashta & the central region has Uttar Pradesh & MP, thus leaving AP, Tamil Nadu, Kerala & Karnataka for southern region.

Region wise Capacity of Cement in India Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 North 18.58 18.68 18.20 18.10 18.00 20.92 20.62 East 17.54 15.63 16.06 15.28 14.95 14.14 14.18 West 18.59 16.55 18.08 20.00 19.13 17.58 17.54 South 29.19 33.58 32.48 31.70 31.64 31.65 32.22 Center 16.11 15.55 15.17 14.93 16.28 15.71 15.44 Total % 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Globalization of Indian cement Industry The cement industry is witnessing a number of multinationals entering the market & mergers and acquisitions in domestic market itself, bringing smaller

players under the umbrella of larger companies, & larger companies coming under the umbrella of global players.

The booming demand for cement, both in India & abroad, has attracted global majors to India. In 2005-06, four of the top-5 cement companies in the world entered India through mergers, acquisitions, joint ventures or greenfield

projects. The consolidation witnessed in the industry in recent times has resulted in two crucial domestic deals. First being the de-merger of L&Ts cement (renamed as Ultratech Cement Ltd.) division & its acquisition by Grasim. The other consolidation effort was seen when Gujarat Ambuja acquired 14.4% stake in ACC in 2000 (India Infoline 2003). Following this Holcim took a big stake in ACC in the year 2005. Thus, the top two groups in the industry, Aditya Birla Group (Grasim & Ultratech Cements Ltd. combine) & Holcim Group (Ambuja Cements Ltd. ACC Ltd. combine) now control more than 45 % of total capacity in the country.