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SUMMER TRAINING PROJECT REPORT

On

A study of market potential and sales promotion in Shree cement

ltd. Aligarh

Towards partial fulfillment of

Master of Business Administration (MBA)

(Affiliated to A.P.J Abdul Kalam Technical University, Lucknow)

Company Mentor: - College Mentor:-

Mr. Piyush Kacchal Ms. Arushi Maam

marketing head Aligarh Faculty, BBDNITM

Submitted by

Ms. Palak Khandelwal

Roll Number :- 1505470034

Session 2016-2017

Department of Management

Babu Banarasi Das National Institute of Technology & Management Sector 1,

Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P)

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Acknowledgement
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I would like to thank Shree Cement ltd. For having the opportunity to do a project that

was challenging as well as rewarding . Working on the project for marketing division has

enabled me to add value to the organization as a whole and has all wonderful learning

experience for me.

Special thanks go to the marketing department for their complete support throughout

the tenure of the project.

I am obliged by Mr. Piyush Kacchal marketing for having taken me under his guidance

for the project.

A deep note of gratitude goes to Mr. Rajeev Khandelwal and my guide & mentor during

the project for his unstinting encouragement , help in understanding various integral part

of this project.

I am highly indebted to the people mentioned above and all the employees of shree

cement ltd. Who have been an integral part of this project.

And last but not the least I am grateful to my institute, BBDNITM lucknow that

provided me this opportunity to interact with this organization and understand the

intricacies of the corporate world.

THANK YOU

Palak khandelwal

Declaration
I hereby declare that work presented in the report is partial fulfillment of requirement of

award of degree of MBA ( Babu Banarsi Das National Institute Of Technology and

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Management ) UP is the record of my own work done under the guidance of Mr. Piyush

Kacchal, Shree cement Ltd. . The Internship opportunity I had with Shree Cement Ltd.

Was a great chance of learning and professional development. I will survive to use gained

skills and knowledge is the best possible way

Palak Khandelwal

PREFACE

Project report is an integral part of MBA degree course, this report is particularly for partial

fulfillment of the course. It is a matter of great delight presenting a research report entitled A

study of market potential and sales promotion in Shree cement ltd. Aligarh. The data has

collected by using primary and secondary data collection method the researcher has analyzed the

data and extracted the finding there from analysis and interpretation the base for conclusion

suggestions given on the basis of analysis . practical knowledge is an important aspect of

management education and in order to produce promising executive, this practical has to be

interwoven with the theory of exposure to the actual office work and other condition give inside

into what actually happen with managerial responsibility.

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Executive summary
Given the external environment with the failure of the Doha talk, rising crude oil

prices, rising competition from peer set countries and pressure from developed and

neighboring countries the BJP led government has fared well in the first two

years of governance India is expected to cross GDP growth of 85 during 2005-06

compared to an earlier estimated growth of 7.5%.

India is experiencing a metamorphosis in terms of business environment especially

in the industries directly related with commodities like cement and allied

industries. Regulations with regard to investment have become hassle free

compared to the earlier licensed raj system.


Foreign multinational have increased their investments in the Indian Diaspora or

are venturing for a partners which has not started its shop in India. Foreign direct

investment (FDI) have been allowed in all sectors to boost productivity Industries

like cement are in the news due to the huge investment made by an MNC,

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which is worlds seconds largest cement manufacturing firm, has escalated the

value of cement firm in India.


India is second largest cement manufacturer with an installed capacity of 160

million tones after china accounting for 6% in the global cement market. The

consumption grew a record 11 % for the nine months ended December, 2005 to

97.8m metric ton (MMT). The construction boom and rising public infrastructure

investment have fuelled domestic consumption in recent years. The recent surge in

cement consumption and the slower pace of capacity addition have reduced the

supply - demand imbalance considerably - capacity utilization of plants has been

growing consistently in the past four years.


From 80.1% in 2002, it grew to 81.6%, 82.6% and 83.7% for the financial years

2003, 2004 and 2005 respectively. In fact, if the Governments Ambitious Bharat

Nirman Programmed takes off, economy continues to


Grow at the current rate, the industry could even slip into capacity deficit. The

cement companies then have to take a stand whether to eater the needs of

domestic markets or foreign market where realization is on the higher side. The

cement retail price have declined during 2005 - 06 but continue to overrule when

compared to the previous year.


With effect from jan2006 Tamil Nadu has scrapped the dual tax system imposed on cue

cement and notified it as the uniform sales tax of 14%. The uniform selling prices is

expected to have a positive effect on the bottom line of the companies.


The performance of cement companies was led by India cements and Grasim, registering

a high growth rate in terms of sales during period ended December 2005. India cements

and Grasim have witnessed a growth as high as 32% to Rs. 3466.30 million and 30% to

Rs. 8948.6 million during the quarter ended December 2005. India cement ltd (ICL) and

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ultra tech cement (UTC) have been witnessing a high volume growth among the major

cement companies.
UTC has witnessed 12.94% growth in terms of volumes during the same period on YOY

basis. Better capacity utilization has led to an improvement in the operating performance

of cement companies. All cement companies expect GACL; have fared well in terms of

growth of operating profit per unit. GACL is considered to be a low cost cement producer

in the country having the largest operating profits per ton of Rs. 515.59 followed by

Grasims 393.78 and UTCs Rs. 350.74. All major cement companies have logged profits

with a positives growth UTC and ACC have registered a high growth in terms of growth

of PAT.
UTC has registered a growth of 316% and ACC has witnessed 262% in terms of after-

tax-profits Cement firms are set for higher quarterly profits as analysis see a bright future

thanks to a busy building sector in a rapidly growing economy.


Demand for cement, which is also growing at 8% a year, is expected to help prices in the

absence of major supply additions. The outlook for the housing industry is highly

positives considering the rise in income level: the easy availability of mortgage finance.

Another major driver for the demand in cement would be the increased focus on

infrastructure.
The central government has approved a special purpose vehicle for funding

infrastructure projects, it is estimated that south demand would continue to grow at

around 10% to 12% every year, backed by the strong economic growth of 7% to 7.5%.
The industry is primarily dominated by few players namely AC The industry is

primarily dominated by few players namely ACC, Gujarat Ambuja, Grasim, Madras

cements and shree cement. Cumulatively, these players constitute about 90% of the total

market supply. As for the demand, it is growing at an impressive rate with the YOY

demand for the months of January, February, March 2006 being 16, 18, 17.5 %

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respectively. The market demand scenario will be dealt with in detail in the market

assessment section
Among the most efficient players in north India
Shree cement is among the most efficient cement producers in north India with a capacity

of 2.6mn tons p.a. in Rajasthan. Shree has consistently produced at above average

capacity utilization with de bottlenecking of existing facilities. The company has reported

a strong EPS growth of 28% YOY in Q1 F Y04 the stock trades at a P/E of

10.5x04FY04E and 6.4x5FY05E earnings.


Commissioning of power plant to add to gains
Shree has commissioned \, in April 2003, a 36MW (two units of 18 MW each) thermal

based captive power plant. Shree expects a net saving of Rs. 250mm on account of the

savings in power costs shree has also undertaken a number of process- optimization

measures to reduce its power & fuel cost.


Focus on branding to aid margin expansion
To insulate itself from price fluctuation and to expand operating margin, the company has

started branding its product. Its launched the corrosion resistant red oxide brand in

FY03, which will lead to higher realization and improved margin. Ultra red oxide is

expected to account for 30% of the companys sales in FY04 despite poor price

realization the company has been able to maintain margin by innovation such as witching

from imported coal to pet coke in its kilns, use of hydraulic rocks breaker for reducing

limestone costs, by using road transportation for freight cost rationalization.

Index

Contents Page No.

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Introduction of cement industry 13

1. About cement 14-18


2. Type of cement 19-21
3. Red oxide cement 22-23
4. Manufacturing process 24-27

Introduction to organization 28

1. Company profile 29-32


2. Company philosophy 33
3. Company vision 34
4. Our principle 35
5. Our Value, Our Operating Strength 36
6. Company Success drivers 37-38
7. Innovation 39-40
8. Financial results & annual reports 41-42
9. Code of conducts 43-46
10. Markets classification 47

11. Information technology 48-49

12. Progressive management 50-51

13. Shree cement policy 52-55

Marketing 56-59

Sales promotion strategies 60-61

1. Research design 62
2. Scope of study 63
3. Research methodology 64-67

Objective of the study 68

Analysis and interpretation 69-84


Finding 85

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Queries of customer 86

SWOT analysis 87-88

Recommendations 89-90

Annexure 91-96

Reference 97

1. INTRODUCTION OF CEMENT INDUSTRY

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India, being the second largest cement producer in the world after China with a total capacity of

151.2 Million Tons (MT), has got huge Cement Company. With the government of India giving

boost to various infrastructure projects, housing facilities and road networks, the cement industry

in India is currently growing at an enviable pace. More growth in the Indian cement industry is

expected in the coming years. The cement industry in India is dominated by around 20

companies, which account for almost 70% of the total cement production in India.

An Overview of Cement Industry


The history of the cement industry in India dates back to the 1889 when a Kolkata-based

company started manufacturing cement from Argillaceous. But the industry started getting the

organized shape in the early 1900s. In 1914, India Cement Company Ltd was established in

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Porbandar with a capacity of 10,000 tons and production of 1000 installed. The World War I gave

the first initial thrust to the cement industry in India and the industry started growing at a fast rate

in terms of production, manufacturing units, and installed capacity. This stage was referred to as

the Nascent Stage of Indian Cement Company. In 1927, Concrete Association of India was set up

to create public awareness on the utility of cement as well as to propagate cement consumption.

The cement industry in India saw the price and distribution control system in the year 1956,

established to ensure fair price model for consumers as well as manufacturers. Later in 1977,

government authorized new manufacturing units (as well as existing units going for capacity

enhancement) to put a higher price tag for their products. A couple of years later; government

introduced a three-tier pricing system with different pricing on cement produced in high, medium

and low cost plants.

Cement Company, in any country, plays a major role in the growth of the nation. Cement

industry in India was under full control and supervision of the government. However, it got relief

at a large extent after the economic reform. But government interference, especially in the

pricing, is still evident in India. In spite of being the second largest cement producer in the world,

India falls in the list of lowest per capita consumption of cement with 125 kg. The reason behind

this is the poor rural people who mostly live in mud huts and cannot afford to have the

commodity. Despite the fact, the demand and supply of cement in India has grown up. In a fast

developing economy like India, there is always large possibility of expansion of cement industry.

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Technology Up-gradation
Cement industry in India is currently going through a technological change as a lot of up

gradation and assimilation is taking place. Currently, almost 93% of the total capacity is based

entirely on the modern dry process, which is considered as more environment-friendly. Only the

rest 7% uses old wet and semi-dry process technology. There is also a huge scope of waste heat

recovery in the cement plants, which lead to reduction in the emission level and hence improves

the environment.

Major Players in Indian Cement Industry


There are a number of players prevailing in the cement industry in India. However, 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, owned by 54 major companies

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across the nation.

Following are some of the major names in the Indian cement industry:

Company Production Installed Capacity

ACC 17,902 18,640

Gujarat Ambuja 15,094 14,860

Ultratech 13,707 17,000

Grasim 14,649 14,115

India Cements 8,434 8,810

JK Group 6,174 6,680

Jaypee Group 6,316 6,531

Century 6,636 6,300

Madras Cements 4,550 5,470

Birla Corp. 5,150 5,113

ITS DISCOVERY:-

Joseph Aspedine of England first discovered the cement in the year 1878. Since the discovery

took place in the Island of Portland, thus the name was Portland cement.

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2. VARIETIES OF CEMENT AVAILABLEIN THE

MARKET:-

Common types of cement normally available in the market and there specific uses are as under:-

GENERAL VARIETIES

CEMENT TYPES SPECIFIC USE

1. a. 33 Grade General construction work where high strength


concrete is required Plastering, finishing
works, etc.

b. 43 Grade Used where M-15, M-20 and above grade


concrete is required used for precast items and
general construction work. Strength
development is faster than 33 Grades.

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c. 53 Grade High strength cement used for multistory
building, Precast, priestesses items bridges,
Tall structure etc. develops very Fast strength
and speeds up construction.

2. a. PPC (Clay Based) Construction of Dams Dislikes.

(Pozzolana Portland Cement) Sewages pipes, plastering.

b. PPC(Fly Ash Based) Masonry and Finishing Works.

SPECIAL VARIETIES

3. PBFS(Portland Blast) Construction of Bridge, seaport, where saline water

Water comes in contact with the structure. Also used in

construction of channels though which The washing

of acids, salts, Sulphur, etc flow

4. White cement Manufacturing of tiles, artistic, Decorations and floor to

Decorate concrete etc. Generally means for non-

Structural uses.

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5. SRC( Sulphate Resistant) Marine structure underground Construction, chemical

plants,Effluents treatment works, found Attain piles etc

6. Oil Well Cement Used by petroleum industry for cementing gas &oil

Wells at high temperature and pressures.

7. Masonry Cement Mortars for bricks stones and concrete block masonry

as well at high temperatures and pressures.

8. Rapid Hardening Cement Quick setting and high early strength cement, filling

Cracks in dams fast Construction work of Army.

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RED OXIDE CEMENT

Shree Ultra
Red Oxide
Cement
Steel friendly cement using red oxide will now make the e life of steel structures used in

construction longer than before.

Shree cement claimed that its first product of its kind in the country and the new generation

cement would protect the steel structure from getting rusted. Red oxide has been used in

manufacturing the cement, which would give a protective layer to the steel structure.

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Shree cement took the initiative to find out why the old heritage such as the grand old forts of the

state, the Qutub minar and the Taj Mahal still stand strong, while the modern building have a

shorter life span. Extensive research by shree cement in this aspect revealed that modern building

use steel structures as load bearers to reduce the thickness. Steel, if rusted weaken and leads to

the collapse to structure irrespective of the strength of the cement.

Red Oxide is used with the cement it becomes steel- friendly as red oxide has the property to

protect steel. The Ultra Red Oxide Cement will revolutionize the construction industry.

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4.MANUFACTURING PROCESS

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Limestone, shale clay and silica are crushed proportion to the correct chemical

composition and ground to a fine consistency. Small quantities of iron oxide and

alumina may be added to adjust the raw material mixture. The mixture is heated to

about 2700F (1500 C) in large rotary kiln clinker a hard granular intermediate product

is discharged from the kiln and is ground with approximately five percent gypsum

(which controls the setting time) to produces cement.

Cement manufacturing is energy intensive. The majority of the thermal energy is

required in the clinker producing process. A significant amount of electrical energy is

required (mainly in the finish grinding process where clinker is ground with gypsum

of produce cement) CO however, comes from two distinct sources both related to the

conversion of the raw material into clinker.

Limestone is the form of calcium carbonate (Caco3) is the main raw material

component (Approximately 70-80%) of clinker. Before this lime can react with the oxides of

silica and silica the limestone must be broken down into free lime or calcium oxide (CaO) and

carbon dioxide (CO) the C02 is discharged to the environment leaving the CaO free to react with

other oxides and form clinker. The process that decomposes limestone into CaO and CO2 is

called calcinations and requires temperatures in excess of 1650 F. the heat required to obtain

these temperatures is obtained through the combustion of fuels (Coal, natural gas, waste fuels) all

of which combustion products including CO2.

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Drying of raw material in cylindrical dyers. Raw material used hard

limestone and soft clay

Crushing and grinding in separate grinding mills.

Blending /mixing of raw material in the right proportion by pumping


air

into the container

Buring the mixture so prepared and turned in a kiln at a temperature of 1300-1500


to produce clinker

(supported by stack ESP for the capture of outgaes).

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Cement
COMIPRESSIVE STRENGHT

It is one of the important properties of cement For OPC the compressive strength must be highest

in order to with stand load and other tension

Cement Grade 28days compressive

strength

33 330kg/em2

43 430kg/em2

53 530 kg/em2

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ABOUT THE ORGANIZATION

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1. Company profile

Shree Cement Ltd.

Type Public company (BSE: 500387)

Industry Cement manufacturing (17.5 Million Tons per Annum and Power Generation (597 Mw total
installed capacity)

Headquarters Kolkata, India

Key people Benu Gopal Bangur


(Executive Chairman)
Hari Mohan Bangur
(Managing Director)
Subhash Jajoo
(C.F.O)
R. L. Gaggar
(Director)
O. P. Setia
(Director)
Shreekant Somany
(Director)
Abid Hussain
(Director)
Y. K. Alagh
(Director)
Nitin Desai
(Director)

Revenue 58.58 billion(US$870 million) 2013-2014[1]

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Shree cement limited is an India - based cement manufacturing company. It was founded in

Beawar in the Ajmer district of Rajasthan . and now headquartered in Kolkata, is one of the

biggest cement makers in Northern India. Shree cement ltd. Is an energy conscious & environment

friendly business organization. Having ten directors on its board under the chairmanship of Shri. B

.G. Bangur, the policy decisions are taken under the guidance of Shri H.M. Bangur , Managing

director Shri. M.K. Singh, Executive Director of the Company is managed by qualifies

professionals with broad vision who are committed to maintain high standards of quality &

leadership to serve the customers to their fullest satisfaction. The broad consists of eminent

persons with considerable professional expertise in industry and field such as banking law,

marketing & finance.

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UNIT-1 UNIT- 2

Incorporated in 1979. Put- up in 1997

Put up in 1985. Capacity 1.24 million tons

Capacity 0.76 Million tons Commissioned in a record time of 18months.

Main plant supplied by The main plant supplied by

M/s F.L. Smidh Denmark KHD Humbolt, Germany

M/s GEBR Pfeiffer, Germany

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2. Philosophy, Vision, Values, Guiding Principles

The Shree "Aah No Bhadra: Kratavo Yantu Vishwatah"


Philosophy Rigveda

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"Let noble thoughts come to us from all over the
World."

At Shree, we believe in imbibing and extending these


noble thoughts across all our functions.

Lead in creating prosperity & happiness for all


stakeholders through innovation & sustainable
practices.

2. Our Vision
As an organisation, we spread happiness amongst everyone connected

with our eco system and create wealth for investors, employees, business

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associates and communities where we operate by experimenting and

implementing new ideas for improving efficiencies and maximizing the

ratio of output product to input resources.

Shree B.G. Bangur, Executive Chairman

3. Our Guiding and Principles

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4. Our Values, Our Operating Strength

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5. Success driver
PEOPLE AS PROGRESS DRIVERS
Shree believes that what is present in the minds of people is more valuable than the

assets on the shop floor. All the companys initiatives are directed in leverage the

value of the growing assets.


TEAM WORK
Shree leverages effective team working to generate a sustainable improvement.

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LEADERS AT EVERY LEVEL
Shree believes in creating leaders not just at the organizational apex but at every

level, resulting in a strong sense of emotional ownership.


CULTURE OF INNOVATION
Shree believes that what is god can be better across the organization.
CUSTOMER FOCUS
Shree is committed to deliver a superior quality of cement at attractively affordable

prices.

SHAREHOLDER VALUE

Shree is focused on the enhancement of value through a number of strategic and

business initiatives that generate larger and a better quality of earnings

COMMUNITY AND ENVIRONMENT

Shrees community concern extends from direct assistance to safe and dependable operation for

its members and the environment

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6. INNOVATION

Innovation & Cost Conscious Management

Leadership in the use of alternative waste fuel

First cement plant in India to maximise substitution of imported coal by petcoke

(Petroleum industry waste) thereby increasing profitability and saving natural resources.

Initiatives for global warming reduction

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Pioneered in the application of innovative Electro Static Precipitator technology in DG power

generation to save fuel and combat pollution, and replaced HSD by LDO.

Achieved unity power factor


In electrical distribution system to reduce maximum demand, and transmission /

distribution losses

Partial utilization of waste heat

For 3MW power generation.

Initiator in the use of petcoke for power generation in India

36MW c captive thermal power plant under commissioning to generate quality

power for the plant avoid transmission and distribution losses, and provide surplus power

to Rajasthan.

SAVINGS : Rs. 496.46 million pa

Development of DD Cones

In house development of deduiling cones for cyclones resulting in reduction in pressure

drop , higher outputs and lower energy consumption

Single roller press for two ball mills

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Capacity enhancement & utilization of CM-2 Roller press for capacity increase and energy

saving in CM-1

--Energy Saving -2.02 kwh / T cement

8. Financial Results & Annual Reports

Energy Conservation Award 2005

Best Quality Excellence Award for the year 2003-04

Shree Cement bags Greentech Environment Award for the year 2004-05

Productivity Award to Shree Cement 2004

TERI Corporate Award for Environmental Excellence & Corporate Social

responsibility 2003-04

National Award for Excellence in Energy Management 2004

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Overall Quality of the Organization.

Good Corporate Citizenship

Provision for safe and healthy work place.

Exemplary Employment Practices

Responsible environment protection and practices

Energy Conservation

Others Important Achievements

Excellent Energy Management Award for 2003

Confederation of Indian Industry (CH ) award for Excellent Energy Management

To Shree Cement Limited

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9 CODE OF CONDUCT ON CORPORATE GOVERNANCE

PHILOSOPHY

Shree Cement Ltd. Is a professionally managed company. The company always believes in

complete transparency and discharge of the fiduciary responsibility which has been assumed by

Directors as well as by the Senior Management Executives and/ or staff therefore in order to

ensure the continuity thereof though, not written but otherwise ingrained the Board of Directors

has approved of the following code of conduct for the directors as well as for the senior

Management Executive and/ or personnel and other employees.

All the director as well as Senior Management Executive and/or Personnel owe to the company

as well as to the shareholders:

i) Fiduciary duty
ii) Duty of skill and care
iii) Social responsibility

With the above objects in mind the following code of conduct has been evolved and it is

expected that all directors as well as Senior Management Executive and/or personnel will adhere

to it.

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FIDUCIARY DUTIES

All director as well as Senior Management Executive and/or personnel while dealing on behalf

of the company will exercise the power conferred upon him/ them duties honestly and in the best

interest of the company.

DUTY TO EXERCISE POWER FOR PROPER PURPOSES

The board from time to time shall determine the power to be exercised by the director as well as

Senior Management Executive and/or personnel and all such power shall be exercised

reasonably.

CONFLICT OF INTEREST

None of the Director and/or Senior Management Executive and/or personnel will put himself in a

position where there is potential conflict of interest between personal interest and his duty to the

company. Noe of the director and/ or Senior Management Executive and/or personnel will

exploit an opportunity arising while associated with the company for his personal gain either

directly or indirectly.

SECRET PROFITS

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The director as well as Senior Management Executive and/or personnel while discharging their

duties in a fiduciary capacity is precluded from making any personal profit from an opportunity

which may arise being a Director and/or Senior Management Executive of the company and

should always ensure that he is acting for and on behalf and for the good of the company.

DUTY OF SKILL AND CARE

Since all the director as well as Senior Management Executive and/or personnel are acting in a

fiduciary capacity and for the benefits of the company, being advocates of the business of the

Company, none of them will do anything which is in conflict with the interest of the company.

ATTENTION TO BUSINESS

All director as well as Senior Management Executive and/or personnel will give proper attention

to the business of the company.

SECRECY AND CONFIDENTIALITY

None of the director as well as Senior Management Executive and/or personnel while associated

or working for the company will be entitled to disclose either directly or indirectly or make use

of the confidential information which may come in their possession while acting on behalf of the

company and shall not divulge the financial status and position of the company to any person or

persons

INTERNAL TRADING

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None of the director as well as Senior Management Executive and/or personnel will directly or

indirectly in the name of his family members and/or associates will indulge in any internal

trading of the companys shares and stocks.

RISK AND PROPER PROCESS

The senior management personnel and/or employees are expected to keep the directors fully

informed about the effect of the polices adopted by the company from time to time and also

regarding the risk connected with such polices.

Senior Management personnel and/or staff who have been entrusted with specific duties for

ensuring compliance of statutory requirement including the rules and regulations shall forthwith

comply with the same and keep the board of directors fully informed about such compliance or

non-compliance.

Senior Management personnel will from time to time provide or cause to be provided a true and

faithful account of the companys working and effectiveness of the procedures adopted by the

company from time to time.

All directors as well as senior management executives and/or personnel are aware that while

working with the company they have a social responsibility as well and therefore from time to

time will devote such time for the upliftment of the downtrodden, poor and needy person in the

locality

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10 . MARKET CLASSIFICATION
over the last few years, there
has been a remarkable shift at
shree : from a Production-
centric to a customer- obsessed
organization .

Challenges

Marketing presence

Markets

Markets states

Market classification

Markets States

Primary Rajasthan

Secondary Delhi, Punjab, JK, Haryana, Western U.P. and


Uttaranchal

Tertiary Gujarat, M.P. and Central U.P.

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11.Information Technology

SCL has embraced information Technology in a big manner and made investments to establish

strong IT infrastructure:

IT Policy & Quality Standards: SCL has clearly defined IT policy. Backup and disaster

recovery Policy, SCL Internet/ Network Access Policy and Business Contiun;ly plans

have been endorsed and religiously implemented.

SUMriddhi Shree Enterprise Resource Planning : The Shree ERP programme,

christened SUMriddh ,was developed deploying Oracle 9i RDBMS and Developer 2000

platform. A comprehensive ERP program was designed to integrate all functional

modules, namely Financial Accounting &Costing (FA), Material Management (MM),

Personnel and Payroll(PP), Laboratory and Quality Control, Integrated Management

System (IMS) and Raw Material Procurement (RMP) with the objective to make

operations online . The company expects to implement ERP live across the organization

in 2004-05.

Online operations of Sales and Distribution : The company successfully implemented

the computerization of its sales and distribution functions by integrating all

branches/dealers through a secured connectivity with the plant for online order

processing. In the second phase, necessary enhancements will make the system work in a

centralized manner using dedicated and secure Virtual Private Network (VPN) across its

branch/dealer network.

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Shrees IT Infrastructure : The company has a scalable, state-of-threat IT network

infrastructure, with optic fibre cable-based gigabit backbone, high-end layer 3 switches,

Cisco routers and IBM corporate-computing servers. Shree has a secure network across

its corporate and site locations with e-trust firewall supplemented with intrusion detection

system and Active Virus Defense Solution from Network Associations. The organization

is provided with the latest computing tools in Hardware and software.

Shrees corporate website : The company launched its content exhaustive corporate

website.

12. Progressive Management

Shree Cement supplemented its attractively low capital investment per ton with one of the

lowest manufacturing costs in the Indian cement industry.

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Starting with 6 lack tones per annum of cement in 1985, the capacity was upgraded to 7.6 lack

tones in 1993. Second plant with installed capacity of 1.24 million tons per annum was

commissioned in 1997, in record time of 18 months, raising total capacity to 2.0 MTPA. Even

during recession in the industry, it was possible for it to enhance capacity further to 2.6 MTPA

due to its strategic location and better brand image and is the largest single location plant in

North India. The companys installed capacity accounted for 15 percent of Rajasthans total

capacity in 2002-03 and 2.5 percent of Indians production in 2002-03. Cement production

increased 3.42% from 2.747 million tons in 2002-03 to 2.841 million tons in 2003-04.
Once again, the low cost was the result of scores of initiatives across all levels within the

company. Some resulting in small savings. Some in big. But each primarily driven by the belief

that what was being done could be done better.

Coller fans were configured to a higher capacity so that heat could recuperate better. A better raw

mix helped Shree reduce the proportion of high cost limestone and saved the company Rs 0.44

cr.
Achievements
Capacity Utilization
Cement and clinker production
Product mix-blended cement
Kiln production
Manufacturing cost
Power consumption

47
48
12. Shree cement policy

SUSTAINABILITY POLICY

To produce quality cement in an eco-friendly, healthy & safe working environment in a socially

responsible

manner with continual improvement in performance and profitability to the satisfaction of all

stake holders by ensuring:

49
Customer satisfaction

Clean and green environment

Sound health and safe working practices

Compliance to the applicable laws and respecting the international instruments

Implementation of the systems and continually improving their effectiveness

Adoption of cost-effective technologies and practices for improved productivity and

profitability

Mutually beneficial stakeholders' relationship

Human resource satisfaction

AN ENERGY & ENVIRONMENT CONSCIOUS SUSTAINABLE ORGANISATION

ENVIRONMENT POLICY

To ensure:

Clean, green and healthy environment

Efficient use of natural resources, energy, plant and equipment

Reduction in emissions, noise, waste and green house gases

50
Continual improvement in environment management

Compliance of relevant environmental legislations

HEALTH & SAFETY POLICY

To ensure Good Health and Safe Environment for all concerned by:

Promoting awareness on sound health and safe working practices

Continually improving health & safety performance by regularly setting and reviewing

objectives & targets

Identifying and minimizing injury and health hazards by effective risk control measures

Complying with all applicable legislations and regulations

PROSPERITY THROUGH HEALTH & SAFETY

QUALITY POLICY

To provide products conforming to National standards and meeting customers requirements to

their total satisfaction.

To continually improve performance and effectiveness of quality management system by setting

and reviewing quality objectives for:

51
Customer satisfaction

Cost effectiveness

JO SOCHE, WOH PAAVE

HUMAN RESOURCE POLICY

We at Shree Cement are committed to:

Empower people

Honors individuality of every employee

Non discrimination in recruitment process

Develop competency

Employees shall be given enough opportunity for betterment

None of the person below the age of 18 years shall be engaged to work

Incidence of Sexual Harassment shall be viewed seriously

Statute enacted shall be honoured in letter & spirit & standard Labour Practices

shall be followed. Every employee shall be accountable to the law of the land & is expected

to follow the same without any deviation

52
Management will appreciate observance of Business ethics & professional code of

conduct

To follow Safety & Health, Quality, Environment, Energy Policy

53
MARKETING STRATEGY

54
A business is an organ of society. So, is one valid definition of marketing of business purpose to

create a customer?

Essential, creating a customer means identifying needs in the market place finding out which

needs the organization can profitably serve and develop an offering to convert potential buyers

into customers. Marketing managers are responsible for most of the activities necessary to create

the customers the organization wants.

The identify include:

Indentify customers needs


Designing products and services that meet those needs
Communicating information about those products and services to prospective buyers
Making the products or services available at times and places that meet customers

needs
Pricing the products to reflect costs, competition and customers ability to buy
Providing for necessary service and follow up to ensure customer satisfaction after the

purchase

Marketing is the performance of business activities that direct the flow of goods and services

from producer to customer of user. Marketing would no longer be regarded as a supplementary

55
activity to be performed after the production process had been completed. The market would for

instance now pay the lead role in product planning. Marketing and selling would no longer be

synonymous

DISTRIBUTION CHANNEL

For Aligarh District:-

Factory Handling Agent Whole Seller Retailer

Customer

56
57
SALES PROMOTION

In order to promote sale, the company organizes conferences, meeting etc. with masons

and dealers occasionally. Gift items are distributed to masons and dealers in order to

include them to promote sale and discounts are also given on higher purchases. Sales

promotion schemes are not fixed it depends upon sales target of sales (trade sale or

direct sale) in case of direct sales , stores in our dealer ( wholesales) , retailer sales

promotion.

58
Sales Promotion Strategies

I- Research Design

The issue for this part is the analyzing the market potential &sales promotion. The strategy is to

find out various problem related to the distribution and dealers and strategize efficient solution to

eliminate these problem and make the existing relationship better. Its has been assumed here

that, if better facilities are given to them, than even if the channel in proper way, they would

continue working for the company. The methodology adapted to understand their behaviour is

survey based. The project started with understanding of the complete distribution channel and

consumer behaviour towards company products. Distribution channel also payes significant roles

in the marketing substantial time was spent in understanding the working of Distribution and

Dealer. Next, questionnaire based interviews were done to understand their behaviour and

attitude towards the company. During the process of interviews, they came up with various

problem along with possible solutions to these problem. These are discussed in the later part of

the project report.

The most relevant and impersonal problem were selected and after analysis, their solution were

worked upon. In all, many dealers, retailers &customers were interviewed in the process.

Although, the number of dealers and retailers could have been increased, monotonousness of

problem at later stags prevented this

59
The problems found and solution worked upon, were discussed with people in the marketing

department and with respected guide, Mr. Narip Bazwa. The quantitative and qualitative analysis

of data presented in the later parts of this reported

II-Scope of study

1. To understand the distribution channel, customer behavior.

2. Extend the channel, implementation and expansion.

III- Research Methodology


60
Preliminary
Survey

Questionnaire Desgin

Interview Based Field


Survey

Data
compilation

Data Analysis

61
Research design- Descriptive

Sample design- Random sampling

Data collection Primary & Secondary


method-

Data source- Primary Through questionnaire

Secondary through books, magazines, internet

Sampling unit- Distributor of shree cement

Sample size 50

Area- shree cement ltd Aligarh

1-Preliminary Survey

62
In the preliminary Survey, met with dealers, retailer as a student, contactor & builder and got the

information about products. In the survey also met with masons and consumers to know their

perception about the products. Find it :-

1. How do they feel with the product?

2. They have knowledge of product or not.

2-Questionnaire Design

On the basis of survey, prepare a questionnaire which correlated with dealers, retailers, masons

and consumers problems and it also indicate present cement market, customers parameters

brand wise ranking.

3-Field Survey

After preparing a questionnaire go for a descriptive field survey, after that filled up the

questionnaire by the dealers, retailers, masons and customers (different type) asked their

perception about Shree Cement. We also those dealers, retailers, masons and customers who are

not using Shree Cement & ask their perception ask questions like..

1. Why are they not using cement?

2. According to them what types of drawback involved in it?

3. Do you know about the ROC and its impact to the wall?

63
4. According to them what we should add to improve the Shree Sales?

And many other questions.

4- Data Compilation and Data Analysis

On the basis of questionnaire and field survey, collected the datas of the same characteristics and

analyze or the inferences. On the basis of analysis, make the graphs (refer to appendix)

5- Disussion With Guide And Marketing Department Personnel

On the of inferences, discuss with mentor about the report and got suggestion toward the that

what should do in the market to resolve the problem and what type of effort have to get the better

result.

6- Strategy Formulation

After taking the suggestion make the strategies to promote the company sales. The main fpcus

the distribution channel because it plays the significant role in the sales and how to handle

dealers and retailers that take interest in the product.

64
Objective of the study

To Study the awareness of customer of shree cement in Aligarh.

To Study of the tools and techniques of sales promotion that is used in shree cement

To Study of consumer satisfaction for shree cement.

To Study of the brand loyalty of the customers towards shree cement.

To study of shree cements demands in Aligarh market.

65
ANALYSIS AND INTERPRETATION

Q. 1. How many times you are in this field?


66
a) 0 to 5 years b) 5 to 10 years

c) 10 to 15 years d) More than 15 years

Ans.

DURATION OF TIME IN CEMENT SELLING FIELD PERCENTAGE

0 to 5 years 40%

5 to 10 years 20%

10 to 15 years 30%

More than 15 years 10%

50%

40%

30% 0 to 5 years
5 to 10 years
20% 10 to 15 years
10% More than 15 years

0%
Percentage

The above diagram shows that 40 % distributor having the selling experience between 0 to 5

years an d20 % are having 5 to 10 years experience of selling due to the boom in cement sector

more distributor are joining this sectors. Its a good sign for company

Q. 2. Give are recommendation for shree cement?

67
a) 1st choice b) not 1st choice c) Never

Ans.

REOMMENDATION APP PERCENTAGE

1st choice 27%

Not 1st choice 51%

Never 22%

40%
35%
Ultratech
30%
25% JK(N)
20% Shree
15% Birla Uttam
10% Bangur
5%
Birla chetak
0%
Percentage

On the basis of 27% retailer says, there 1 st choice is Shree Cement and 51% says not 1 st choice

and remaining 22% says never they have sold Shree Cement.

Q.3. which brand cement you are selling?

68
a) Ultratech b) Shree c) JK (n) d) Birla Uttam e) Bangur

F) Rocksrong g) Birla chetak h) JP i) Binani j) Other

Ans:

BRAND PERCENTAGE RATING

Jk(n) 20 1

Ultratech 15 2

Shree 12 3

Birla uttam 7 4

Bangur 8 5

Biralchetak 5 6

Rockstrong 5 7

JP 4 8

Binani 3 9

Others brands 21 10

25

20
JK(n) Ultratech
15 Shree Birla uttam
Bangur Birla chetak
10
Rockstrong Jp
5 Binani Others Brands

0
Percentage

69
It varies from time to time and depends upon the market condition and quality of the product.

These are Shree, Ambuja and Binani and these are Shree Cements main competitors in Aligarh

City.

Q. 4. On the basis of demand and other factors .Which brand you are selling most?

Ans.

BRAND PERCENTAGE

J. K. Lakshmi 25

Shree 20

Ultra Tech 15

Binani 13

Bangur 10

JP 9

Other 8

Availability of Brands

70
J.K. Lakshmi
25 Shree
20
Ultra Tech
15
Binani
10
Bangur
5
JP
0
other
Percentage

1. Mostly people one selling the Shree brand because it was mostly demanded and other

factors
2. These was the Shree brand which was mostly demanded in market and it has maximum

market share

Q.5 which particular brands advertisement you like most?

Ans.

BRAND PERCENTAGE

Ambuja 24

Binani 20

Shree 18

J. K. Lakshmi 13

Bangur 11

Birla Plus 10

Other 04

71
Advertisement Of Brand

4% Ambuja
10% 24% Binani
11% Shree
J.K. Lakshmi
13% Bangur
20%
Birla Plus
18% Other

1. 24% people likes the advertisement of Ambuja cement.


2. Shree cement was at third stage and 18% people liked the advertisement of Shree

Cement.

Q. 6. On the basis of services which brand you like very much?

Ans:-

BRAND PERCENTAGE
Ambuja 29%
Shree 27%
Binani 18%
Bangur 10%
Jk Lakshmi 05%
Birla Plus 02%
Other 05%

72
30
others
25
Birla Plus
20 J.K. Lakshmi
Bangur
15 Binani
Shree
10
Ambuja
5

1. 29% respondents were satisfy with the services provided by the Ambuja

Cement.
2. Shree Cement respondents at second stage and 27% people responded it.

Q7. According to price which brand is cheapest and which brand is costly?

Ans:-

BRAND PRICE

Binani 255

Shree 265

Ultra tech 295

73
Birla Uttam 275

JK(N) 280

JK Laxmi 265

300

290

280

Binani
270 Shree
Ultra Tech
260 Birla Uttam
JK(N)
JK Laxmi
250

240

230
BRAND OF CEMENT

1. There are 1st Binani brand is cheapest (Price rs.255) and then Shrees (Price rs.265) and Ultra

tech is the most costly brand (Price rs.295).

Q8. Sales target met before meetings held ?

74
We met different contractors and explained the advantages od red oxide cement. Not Only

contractors even we met some retailers also explained them why they should sale shree

cement.

Ans:

BRAND SALES

Ultra Tech 32

JK(N) 40

Shree 10

Birla uttam 8

Others 10

45
40
35
30 Ultra tech
25 JK(N)
20 Shree
15 Birla Uttam
10 Others
5
0
BRAN DO F CEMENT

1. 40% people selling the Ultra Tech brand before our meeting of them.
2. The share of shree cement was a 3rd stage in survey which wa 10% market sales

75
Q.9 Sales improvement after twenty days after meeting?

Ans:-

BRAND SALES

JK(N) 40%

Ultratech 30%

Shree 12%

Birla Uttam 8%

Other 10%

45%
40%
35%
30% JK(N)
25% Ultra tech
20% Shree
15% Birla Uttam
Other
10%
5%
0%
BRANDS OF CEMENT

1. After meeting the share of shree cement has increased from to 12% in 20 days.
2. JK(N) was at top most selling brand.
Orders:-
In the process of meeting my team got the order of these hundred bags. This thing

motivated my team.

Q. 10. Why did you choose to a particular brand ?


Ans:-

76
SURVEY PERCENTAGE

1. Price 60%

2. Quality 30%

3. Availability 10%

According to report

10%
Price
Quality

30% Availability

60%

1. Most people are sensitive toward the quality of the product.


2. Next factor which affects the sales that is price the 30% people are gave preference to

price.

Q. 11. What kind of motivation you expect from company you associated with?

a) Discount b) More margin c) Credit time

Ans:-

77
EXPECT FROM COMPANY PERCENTAGE

Discount 30%

More margin 20%

Credit time 50%

Expectation from company

30% Discount
More margin
50%
Credit time
20%

1. When asked about motivation and expectation factor provided from company

mostly or 50% people were in favor of credit limited given by company.


2. Next factor was discount on seasonal basis.

Q. 12. Is customer asking about cement (red Oxide)?

a) Yes b) No

78
YES 70%

NO 30%

Customer interest about shree cement

30%
YES
NO

70%

At the time of survey the people of 70% were aware about the shree cement

Red Oxide Brand.

Q. 13. Do you think shree cement is a?

a) Successful Brand b) unsuccessful Brand

Ans:

79
THINKING ABOUT THE SHREE CEMNT PERCENTAGE

Successful brand 62%

Unsuccessful brand 38%

Think about the shree cement

38% Successful
Unsuccessful brand
62%

1. 62% people said that shree cement is a successful brand.


2. 38% people said that its not a successful brand.

Q. 14. What influenced your decision to purchase Shree cement?

a) Price b) Brand Name c) Quality

d)Availability e) Performance f) Reliability

g) Advertisement

Ans:

80
OUR DICISION TO PURCHASE SHREE CEMENT PERCENTAGE

Price 10%

Brand name 20%

Quality 40%

Availability 5%

Performance 5%

Reliability 10%

Advertisement 10%

Our dicision to purchase shree cement


Price
Brand Name
11% 11%
6% Quality
6% 22% Availability
Perfomance
Reliability
44%
Advertisement

1. 40% people told that they purchase the shree cement for its quality.
2. 20% people purchase for its brand image.
3. Only 5% responded that they purchase it for its easy availability.

Q. 15. What do you think of the advertisement of shree cement?

a) Impressive b) Satisfactory c) Unsatisfactory

Ans:

81
THINKING ABOUT ADVERTISEMENT PERCENTAGE

Impressive 31%

Satisfactory 29%

Unsatisfactory 40%

Th inking about Ad vertis ement of sh ree


I
S
Uma
npt
s c
iati
res
s em
f ac
sftory
iac
ve ent
tory
7
11
05
6%%
%

1. 40% people said that advertisement is unsatisfactory and they purchase

it only for its quality.


2. 31% people told that advertisement of shree cement is impressive .

Finding

There are 1st Binani brand is cheapest (Price rs.255) and then Shrees (Price rs.265) and

Ultra tech is the most costly brand (Price rs.295).

Shree cement was at third stage and 18% people liked the advertisement of Shree

Cement.

The availability of shree cement in Aligarh is going down.

The percentage of ash is too much in shree cement.

The color of the shree cement is light.

82
QUERIES OF CUSTOMERS

1. The initial time of setting is high comparative to other cements.


2. Why the color of your cement is high?
3. The quantity of ash is too much.
4. It is not available in market.
5. Lack od advertisement.
6. After all these disadvantage why should we buy Shree Cement?

And we solved their queries, which gave a good experience of marketing.

Thankyou.

83
SWOT ANALYSIS

Swot Analysis:-

STRENGTHS WEAKNESSES

Brand equity color is light


It saves iron from rusting. initial setting time.
It is launched through a already

established reputed brand.


Good advertisement.
Cost effectiveness.
R&D

84
OPPORTUNITY THREATS

it is launched first time in india. Being a popular brand people are still
No competitor of Red Oxide Cement.
Specific purpose only for RCC. doubtful about it.
Good response of people.
Use market potential.

RECOMMENDATION

85
Recommendation
The quality of shree cement has improved a fair over time.but this thing has not

really percolated to the customer and manons. Mason meets should be held

frequently to let the masons know about the strong points of shree cement.
There is still scope of improvement for shree cement in quality. Th ROC develops

black spots due to presence of fly ash. This can be avoided by better griding and

mixing of cementwith fly ash.


Some retailer were unhappy thar shree despite promising gifts to them on meeting

certain targets has refrained from fulfilling its promise and is now giving can in

lieu of the promised gifts. It is an times not the giofts but ythe pride if being

presented the gift in a large forum and thus appreciation of work that motivated a

person to put in more efforts.


The quality of the bags of shree cement is a big let down and is considered to be

of the most inferior quality. Proper action should be taken to replace the existing

sets of the bags with new attractive bags.


Shree needs to concentrate on promotional activities, it should advertise its

product more by doing roads shows, putting up hoardings etc. in shorts, we need

to paints the town red.


Company should appoint some efficient distributor & dealer in weel areas.
Shree cement should took at the international market to fetch the preofits because

if we see the per capita consumption in India is low ( 99kg ) comparing to others

countries. Even of being Indias second largest producer of cement in the world

86
ANNEXURE

APPENDICES

QUESTIONNAIRE:-

87
Profession:

Name of outlet:

Place:

Period:

Q. 1. How many times you are in this field?

a) 0 to 5 years b) 5 to 10 years

c) 10 to 15 years d) More than 15 years

Ans.

Q. 2. Give are recommendation for shree cement?

a) 1st choice b) not 1st choice c) Never

Ans.

Q.3. which brand cement you are selling ?

a) Ultratech

b) Shree

c) JK(n)

88
d) Birla Uttam

e) Bangur

F) Rocksrong

g) Birla chetak

h) JP

i) Binani

j) Other

Ans:

Q. 4. On the basis of demand and other factors .Which brand you are selling most?

Ans.

Q.5 which particular brands advertisement you like most?

Ans:

BRAND PERCENTAGE

89
Q. 6. On the basis of services which brand you like very much?

Ans:-

Q7. According to price which brand is cheapest and which brand is costly?

Ans:-

Q8. Sales before meeting ?

We met different contractors and explained the advantages od red oxide cement. Not Only
contractors even we met some retailers also explained them why they should sale shree cement.

Ans:

Q.9 Sales twenty days after meeting?

Ans:-

Q. 10. Why did you choose to particular brand ?

Ans:-

90
Q. 11. What kind of motivation you expect from company you associated with?

a) Discount

b) More margin

c) Credit time

Ans:-

Q. 12. Is customer asking about cement (red Oxide)?

a) Yes

b) No

Ans:

Q. 13. Do you think shree cement is a?

a) Successful Brand

b) unsuccessful Brand

Ans:

Q. 14. What influenced your decision to purchase Shree cement?

a) Price

b) Brand Name

91
c) Quality

d)Availability

e) Performance

f) Reliability

g) Advertisement

Ans:

Q. 15. What do you think of the advertisement of shree cement?

a) Impressive

b) Satisfactory

c) Unsatisfactory

Ans:

REFERENCES

I) shree cement Ltd. ( Marketing, sales and Production Department)


II) websites:-

92
www.shreecementltd.com
www.indianfoline.com
www.cygnusindia.com
www.sski.co.in
www.kslindia.com
www.rathi.com
www.investmentindia.com
www.bharatbook.com
III) Books & Gournals
Shree cement ltd. annual report
Principles of Marketing- Philip Kotlar
Strategic management Thomson & Strickland

BIBLIOGRAPHY

Marketing Management : Philip Kolter


Research Methodology: C.R. Kothari
Marketing research: Rajendra Nargundkar

93