Cement Industry Profile

INDUSTRY PROFILE
Introduction
Cement is a key infrastructure industry. It has been decontrolled

from price and distribution on first march, 1989 and delicensed on twenty fifth
July, 1991. However the performance of the industry and price of cement are
monitored regularly. The constraints faced by the industry are reviewed in the
infrastructure coordination committee meating held in the cabinet secretariat
under the chairmanship of secretary (coordination). Its performance is also
reviewed by the cabinet committee on infrastructure.
Capacity and production

The cement industry comprises of one hundred twenty five large
cement plants with an installed capacity of 151.28 million tones and more
than 300 mini cement plants with an estimated capacity of 11.10 million tones
per annum. The Cement Corporation of India, which is a Central Public Sector
Undertaking, has 10 units. There are 10 large cement plants owned by various
State Governments. The total installed capacity in the country as a whole is
159.38 million tones. Actual cement production in 2002-03 was 116.35
million tones as against a production of 106.90 million tons in 2001-02,
registering a growth rate of 8.84%.
Keeping in view the trend of the growth of the industry in

previous years, a production target of one hundred twenty six million tons has
been fixed for the year 2003-2004.
ADVANCED MANAGEMENT COLLEGE Page 1

Export
Apart from meeting the entire domestic demand, the industry is also
exporting cement and clinker. The export of the cement during 2001-2002 and
2003-2004 was 5.14 million tones and 6.9 tons respectively. Exporting during
April-may, 2003 was 1.35 million tones. Major exporting were Gujarat
Ambuja Cement Ltd and L&T Ltd.
Recommendations On Cement Industry

For the development of the cement industry „working group on cement
industry‟ was constituted by the planning commission for the formulation of
X five year plan. The working group has projected a growth rate of ten
percent for the cement industry during the five year plan and has projected
creation of additional capacity of 42 to 62 million tones mainly through
expansion of existing plants. The working group has indentified following
trust areas for improving demand for cement.
 Further push to housing development programs.

 Promotion of concrete highways and roads.
 Use of ready mix concrete in large infrastructure project.
Further, in order to improve global competitiveness of the Indian

cement industry, the department of industrial policy and promotion
commissioned on the study on global competiveness of the Indian
industry through an organization has made several recommendations
for making the Indian cement industry more competitive in the
international market. The recommendations are under consideration.

Technological change
Cement industry has tremendous strides in technological up
gradation and assimilation of latest technology. At present ninety three per
cent of the total capacity in the industry is based on modern and environment
–friendly dry process technology and only seven per cent of the capacity is
based on old wet and semi- dry process technology. There is tremendous
scope for waste heat recovery in cement plants and thereby reduction in
emission level. One project for co-generation of power utilizing waste heat in
an Indian cement plants is being implemented with Japanese assistance under
green aid plan. The inaction of advanced technology has helped the industry
immensely to conserve energy and fuel and to save materials substantially.
India is also producing different varieties of cement like ordinary Portland
cement , Portland pozzolana cement (PPC), Portland blast furnace slag cement
(PBFS), oil well cement ,repid hardening Portland cement, sulphate resisting
Portland cement, white cement etc. production of these verities of cement
conform to the BIS specifications. It is worth mentioning that some cement
plants have set up dedicated jetties for promoting bulk transportation and
export.
HISTORY
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 enviable Cement is a key infrastructure industry.
The cement industry in India is dominated by around 20 companies,
which account for almost 70% of the total cement production in India. In the
present year, the Indian cement companies have produced 11 MT cement
during April-September 2009. It took the total cement production in FY09 to
231 MT.

Industrial Background
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 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, establish to insure fair price model for consumer as
well as manufacturer. Letter in 1977, government authorize new
manufacturing units (as well as existing unit going for capacity enhancement)
to put a higher price tag for their products. A couple of year later, government
introduces a three-tire pricing system with different pricing on cement
production in high, medium and low cost plants
Cement industry, in any country, plays a major role in the growth of
nation. Cement industry in India was under full control and supervision of the
government. However, it got relief in the large extent after the economic
reforms. The 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 125kg.
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 in India has grown up. In the fast developing country economy like
India there is always large possible of expansion of cement industry.

Major players
There are number of players prevailing in the cement industry in India.
However, there are around 20 big names the accounts for more than 70% of
the total cement production in India. The total installed capacity in distribution
over around 129 plants, owned by 54 major companies across the nation.
Following are some of the major names in the Indian cement industry.
Company Production Installed capacity
ACC 17902 18640
Gujarat Ambuja 15094 14860

Ultratech 13707 17000
Grasim 14649 14115
India Cements 8434 8810
JK Group 6174 6680
Jaypee Group 6316 6531

Century 6636 6300
Madras Cement 4550 5470
Birla Corp. 5150 5113
Present scenario
Post 1990s have seen a sea of change in the industry policy in India. The
over protective Indian markets were opened to foreign companies and
investors. Thus Indian industry registered an imperative growth during the last
decades and half. The number of industry in India have population, it was
realize
COMPANY PROFILE
Cement Corporation of India Limited (CCI) was incorporated as a

Company wholly owned by Government of India on 18th January 1965 with
the principal objective of achieving self sufficiency in cement production. The
authorized and paid-up capital of the company as on 31.3.2010 was Rs. 900
crore and Rs. 811.41 crores respectively.
CCI is a multi unit organization at present having ten units spread

over eight states with a total annual installed capacity of 38.48 lakh MT. All
Factories, Zonal Offices and Corporate Office at Delhi are inter connected
through Internet. In line with the advancement in cement technology CCI had
been adopting the latest one with one million tone plants at Tandur and
Nayagaon.
CCI manufactures various types of cements like Portland

Pozzolana Cement (PPC), Portland Slag Cement (PSC) & Ordinary Portland
Cement (OPC) of varying grades via 33, 43, 53 and 53S (special grade cement
for manufacture of sleepers for Indian Railways) grades. Under strict quality
control with the brand name of CCI Cement.
CCI with a strong work-force of 1079 employees (as on

31.03.2010) has always encouraged balanced regional growth with most of its
factories located in underdeveloped/backward areas. CCI has also been
contributing to the development of areas around factories by adopting nearby
villages and providing the basic facilities like school, health center, drinking
water etc.
For maintaining the ecological balance CCI is launching massive tree

plantation drives from time to time at all units and in surrounding areas.

CCI has established a wide network of ten units with total capacity of
38.48 lakh tones of cement per annum. The units are spread throughout the
country from east (Bokajan in Assam) to west (Akaltara, Mandhar in
Chhattisgarh and Nayaagon in Madhya Pradesh) and from North (Rajban in
Himachal Pradesh and Charkha Dadri in Haryana) to South (Kurkunta in
Karnataka and Adlibbed, Tandur in Andhra Pradesh), with one cement
grinding unit in Delhi.
state and national highways, the cement industry has witnessed tremendous
growth. Production capacity has gone up and top cement companies of the
world are vying to enter the Indian market, thereby sparking off a spate of
mergers and acquisitions. Indian cement industry is currently ranked second in
the w9rld.
The origins of Indian cement industry can be traced back to 1914 when the
first unit was set-up at Porbandar with a capacity of one thousand tones.
Today cement industry comprises of one hundred twenty five large cement
plants and more than three hundred mini cement plants.
The Cement Corporation of India, which is a Central Public Sector

Undertaking, has ten units.
There are ten large cement plants owned by various Central Governments.
Cement industry in India has also made tremendous strides in technological
up gradation and assimilation of latest technology. Presently, 93 per cent of
the total capacity in the industry is based on modern and environment-friendly
dry process technology. The induction of advanced technology has helped the
industry immensely to conserve energy and fuel and to save materials
substantially.
Indian cement industry has also acquired technical capability to produce

different types of cement like Ordinary Portland Cement (OPC), Portland
Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil
Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland
Cement, White Cement etc.

CCI in India is currently going through a consolidation phase.
CCI was incorporated as a Company wholly owned by Government of India

on eighteen January 1965 with the principal objective of achieving self
sufficiency in cement production. The authorized and paid-up capital of the
company as on 31.3.2006 was Rs. 700 cores and Rs. 429.28 crores
respectively.
Issues Concerning Cement Industry

 High Transportation Cost is affecting the competitiveness of the cement
industry.
Freight accounts for 17 percent of the production cost. Road is the preferred
mode for transportation for distances less than two hundred fifty km.
However, industry is heavily dependent on roads for longer distances too as
the railway infrastructure is not adequate.
 Cement industry is highly capital intensive industry and nearly 55-60 percent
of the inputs are controlled by the government.
 There is regional imbalance in the distribution of cement industry. Limestone

availability in pockets has led to uneven capacity additions.
 Coal availability and quality is also affecting the production.
2.3 Nature of Business
 The Indian cement industry with a total capacity of about two hundred m
tones (MT) in FY09 is the second largest market after China. Although
consolidation has taken place in the Indian cement industry with the top five
players controlling almost 60 percent of the capacity, the balance capacity

still remains pretty fragmented.
 Despite the fact that the Indian cement industry has clocked production of
more than one hundred MT for the last five years, registering a growth of
nearly 9 percent to 10 percent, the per capita consumption of around 134 kgs
compares poorly with the world average of over 263 kgs, and more than 950
kgs in China. This, more than anything, underlines the tremendous scope for
growth in the Indian cement industry in the long term.
 Cement, being a bulk commodity; is a freight intensive industry and

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 and the central
region. While the southern region always had excess capacity in the past
owing to abundant availability of limestone, the western and northern regions
are the most lucrative markets on account of higher inc.ome levels. However,
with capacity addition taking place at a slower rate as compared to growth in
demand, recently the demand supply parity had also been restored to some
extent in the Southern region. Considering the pace at which infrastructural
activity is taking place in different regions, the players have lined up
expansion plans accordingly.
 Given the high potential for growth, quite a few foreign transnational's have
been eyeing the Indian markets and are planning to acquire domestic
companies. Already, while companies like Lafarge, Heidelberg and
Italicementi have made a couple of acquisitions, Holcim has acquired stake in
domestic companies Ambuja Cements and ACC and has increased its stake
gradually to gain full control. After acquiring stake in big companies,

transnational eyed median capacity producers. Italcementi acquired 100
percent stake in Zuari Cement and 95 percent stake in Shree Vishnu. Cimpor,
the Portugese cement manufacturer, acquired Grasim's stake (53.63%) in
Shree Dig Vijay. However, it must be noted that the transnational's will find
the going tough since cement is a game of volumes and with the median
capacity of fragmented players, the transnational‟s will have to acquire
capacities piecemeal and this route is fraught with a lot of uncertainties. The
global players put together account of quarter share of the domestic market.
Further, turning around few of the companies at a time when the cycle is at its
peak would be a difficult task.
Location: Rajban Cement Plant is located at 60 km from Dehradun and 70

km from Yamunanagar by road. It is 10 Kms from Ponta Sahib by road. Distt.
- Sirmaur. State - Himachal Pradesh
Capacity: 2, 47,000 MT per Annum
Process: Dry process
Type of Cement: Ordinary Portland cement,

Pozzolona Portland Cement.
Total layout area:

Factory area + Township Mining Area
-------------------------- --------------
Leased Land 136.338 acres 242.3 hectares
Freehold land 34 bights and 11 bitwise 13.4 hectares
Commencement of Production: 01.04.1980
Facility Available : Own township having 449 Nos. of residential

accommodation with facilities of health centre, shopping complex, recreation

club, Guest house, Bank, Post office , LPG Shop, Telephone exchange and co-
operative store.
Employees as on 01.07.2011:
i) Executives : 19
ii) Supervisors: 43
iii) Workers : 171
Production during last eight years:

Year Cement (MT)
------ ----------------
2003-2004 1,57,945
2004-2005 1,67,555
2005-2006 1,96,650
2006-2007 1,91,000
2007-2008 1,60,160
2008-2009 1,43,400
2009-2010 1, 87,360
2010-2011 1, 57,130
Sales & despatches and accretion/(Discretion) to stock ---6834.04 (Rs. in

Lakhs)
Other Income -----213.92 (Rs. in Lakhs)
Raw Materials Consumed -------713.12(Rs. in Lakhs)
Stores and Packing material consumed ---------382.76(Rs. in Lakhs)
Emp. Remuneration & Benefits -------1119.22 (Rs. in Lakhs)
Interest --------20.95 (Rs. in Lakhs)

Depreciation --------93.85 (Rs. in Lakhs)
Other Manufacturing Expenses ----------3608.23 (Rs. in Lakhs)
Profit (+)/Loss (-) --------1109.83 (Rs. in Lakhs)
Reserves & surplus --------- 7092.57 (Rs. in Lakhs)
Net Fixed Assets --------- 1736.94 (Rs. in Lakhs)
Current Assets -------3050.69 (Rs. in Lakhs)
Current Liabilities & Provision --------3318.95(Rs. in Lakhs)
Capital W.I.P --------196.83(Rs. in Lakhs)
Capital Employed---------1468.68(Rs. in Lakhs)

Key Points
Supply
The demand-supply situation is tightly balanced with the latter being
marginally higher than the former.
Demand
Housing sector acts as the principal growth driver for cement. However, in
recent times, industrial and infrastructure sector have also emerged as demand
drivers for cement.
Barriers to entry
High capital costs and long gestation periods. Access to limestone reserves
(principal raw material for the manufacture of cement) also acts as a
significant entry barrier.
Bargaining power of suppliers

Licensing of coal and limestone reserves, supply of power from the state grid
and availability of railways for transport are all controlled by a single entity,
which is the government. However, nowadays producers are relying more on
captive power, but the shortage of coal and volatile fuel prices remain a
concern.
Bargaining power of customers

Cement is a commodity business and sales volumes mostly depend upon the
distribution reach of the company. However, things are changing and few

brands have started commanding a premium on account of better quality
perception.
Competition
Due to large number of players in the industry and very little brand
differentiation to speak of, the competition is intense with players resorting to
expanding reach and achieving pan India presence

COMPETITORS
 L&T cement plants

 AC ltd cement plants
 Gujarat ambuja plants
 JK cement plants
 JK Lakshmi cement
 Madras cement
 India cement
 Shangri industries
 Dalmia cement
 ITD cementation India
 Dalmia cement Bharat
 Ultratech cement
 Relience cement plant
 India cement plant
 Birla group
 Jaypee group
 Tata group cement
 Century cement
 Grasim cement plant

2.5 BOARD OF DIRECTORS
Board of Directors
Mr. A.K. SRIVASTAVA Chairman
Mr. R.K. HARKAWAT Director (PERSONAL)
Mr. R.P. TAK Director (FINANCE)
Mr. SURAJIT MITRA
Mr. R. ASOKAN
Mr.Maj. Gen. (Retd.) UMESH KUMAR JHA
HEAD OF DEPARTMENT
Mr. SARSVATI PARSAD (Chief Vigilance Officer)
Mr. R.N. CHAUHAN (Addl. G.M.)
Mr. S. PUROHIT (DGM Finance)
Mr. V.K. SINGH (DGM MM)
Mr. O.P. SONI (CMO)
Mr. RAMENDRA SINGH (SR. Manager personal)
Mr. R.R DESHPANDE

VISION, MISSION
AND OBJECTIVE
VISION
 To be known for producing quality cement.

 Self sufficiency in cement production.
MISSION
 Ensure customer delight

 Involve employees as partners in progress
 Set new standards in good corporate citizenship
OBJECTIVES
 To achieve a pioneering and leading position in the exploration,

prospecting and proving cement grade lime stone reserves and deposits
to sustain ambitious growth plan of the corporation, in particular and of
the cement industry, in general
 To emerge as a growing and important leader in the production of
cement in the country by creating additional capacity ether by
expansion are by improved technology are by starting by new cement
plants
 To emerge as a leader in sating up capacities in deficit/remote area for
removing existing regional imbalance of production and consumption

in pursuance of the national policy in this regard
 To emerge, resultantly as the largest seller of cement in the country and

to continue to perpetuate and improve upon the same position by
constant increase in the production capabilities.
 To develop and enter export market for export of cement particularly, to

neighboring South East Asian countries.
 To undertake detailed and scientific scanning of the marketing

potentialities for development and diversification into areas of cement
based building materials such as AC sheets, pipes, sleepers, ready mixed
concrete and to undertake appropriate research studies for development
of other building binding materials as a substitute for cement.
 To occupy position both of dominance and eminence in the Research and

Development in different fields of cement technology and process and
also bring about new innovations in the design, layout and other
technical specifications of new cement plants and other related auxiliary
inputs to the cement industry.
 To develop capability and to sustain, perpetually, sound technical and

engineering knowledge to render technical Consultancy services both in
the field of plant layout as well as in the cement process technology both
within and outside the country.
 To develop expertise and sustain sound practices in project management

by application of modern management techniques of planning,
monitoring review and process of the projects undertaken to ensure their
completion within sanctioned costs without any time overrun.
 To ensure sound commercial policies, customers acceptance and

satisfaction for the Corporation's products and other services.
 To develop confidence in the customers and to sell products/services of

high quality and prices determined from time to time by the Government
and to sustain a sound image for the products supplied and services
rendered which are the results of latest sophisticated technology and
manufacturing techniques.
 To generate a participative culture and management style which will

create good in-house working conditions and job satisfaction to all
employees, to ensure fair wages commensurate with their performance,
create a sense of involvement and belonging to the Corporation, instill a
sense of confidence in the matter of their career growth and advancement
and create an atmosphere of mutual respect and goodwill amongst all
sections of the employees.
 To sustain continuous development of managerial talent so as to ensure

their best contribution in the matter of utilization of resources placed and
their disposal for managing and to provide adequate training and
development opportunities for all our workmen.
 To develop organization structure with well defined objectives and

responsibilities to create an atmosphere where freedom to function and
flexibility to perform is ensured for all according to their ability,

capacity, resourcefulness and initiative.
 To develop internal resources to sustain future growth of the Corporation

as envisaged.
 To put in its humble mite and fulfill its social and community obligations
by pursuing national policies in regard to development of rural and
backward areas to the extent resources of the Corporation could be
deployed.
 To review from time to time the environmental impact of setting up of

our industries and to continuously find ways and means to offset
minimize impact of such environmental pollution
2.7 Product Profile
CCI manufactures various types of cements like ordinary Portland

Cement (OPC) & Pozzolana Portland Cement (PPC) of different grades via
33, 43, 53 grades under strict quality control with the brand name of CCI
Cement.
Salient characteristics of different types of cement produced by CCI are:

OPC 53 OPC 43 OPC 33
GRADE PPC IS
CHARACTERISTICS GRADE GRADE 1489
IS 12269 IS 8112 IS 269
YEAR 1987 1989 1989 1991
Fineness – Minimum 3000 3000 3000 3200

specific surface –
cm2/gm
Setting time (minutes)
a. Initial – not less 30 30 30 30

than
b. Final – not more 600 600 600 600

than
Soundness – Expansion by
a. Le-Chatelier 10.0 (max) 10.0 (max) 10.0 (max) 10.0

(mm) 10.0 (max) (max)
b. Autoclave (%) 0.8 (max) 0.8 (max) 0.8 (max) 0.8 (max)
Minimum compression strength (Kg/cm2)
a. 3 days 270 230 160 160
b. 7 days 370 330 220 220
c. 28 days 530 430 330 330
In CCI CEMENT quality parameters namely fineness & compressive

strength are maintained 15-20 percent over and above the prescribed BIS
specifications.

2.8 Area of Operation
Cement production markets have become global markets. The large corporate
buyers are interested in buying cement companies all across Europe. We help
business owners of cement companies directly in the sale or purchase of a
company. Corporate Finance in Europe knows the European cement market
very well. We know the main decision makers (CEO's, CFO's and board
members or PE investors behind them) at cement companies.
We like to show you that we understand the cement market, the relevant
synergies and plans of the different buyers. We are up to date with the latest
and most realistic valuations that currently occur in the market. With this
knowledge we can not only help you in finding the buyer that pays the highest
price, but also ensure you to find the most suited strategic partner for your
business for the long run. We can help you through the complete process if
you want to sell a cements business.
The effects of the recession on cement production
The recession was originated in the US financial system and the housing
market and has rapidly spread its efforts across the world. Later on this
affected the real economy due to the shrinking of global demand trade flows.
The decreasing activity in the construction sector will decrease the world
wide cement production volume in advanced economies and lower growth
rates in emerging markets.

2.9 Manufacturing Strategy
Asbestos is a naturally occurring mineral that exists in abundance in

numerous countries around the world. The material can be found in the soil or
in exposed outcroppings of rock, and it exists in a variety of types, chemical
compositions, and colors. Asbestos is a strong, virtually fireproof, and highly
corrosion resistant material that has fascinated and served mankind for
thousands of years, but in the late nineteenth century, its commercial use
began to increase. In the late 1880s, several asbestos-containing composite
products and materials began to enjoy popularity in the United States and
around the world, and one of the most welcomed and widely utilized of these
items was asbestos cement.
Asbestos-cement is a mixture of primarily chrysotile or white asbestos and

Portland cement. Because asbestos has a very high tensile strength and
superior resistance to degradation from corrosive chemicals, it was considered
to be an excellent additive to the particular chemical matrix of Portland
cement. Depending on the specific use or application of the finished product,
the ratio of asbestos to cement can vary from between 10 to seventy-five
percent by weight. Once the cementitious product is fully cured, the asbestos
fibers are bound in a hard. mass that is stable and durable.
One of the earliest asbestos-cement products that had appeared in the United
States went on the market in 1905, and it was in the form of a coating that had
been developed by H. W. Johns Manufacturing Company (later to be known
as Johns-Manville). The asbestos-cement coating had originally been
promoted as a highly effective roof repair material that could add years of life
to roofs that were once thought to be beyond repair. Often sold as a
convenient, premixed paste, asbestos-cement soon became the low cost
material of choice for roof and flashing repairs or waterproofing around
chimneys, skylights, roof vents, drainage scuppers, etc.
2.10 Achievement
 The excellence award instituted by the Institute of Economic studies (I.E.S.),

New Delhi was conferred on corporation in March, 2005 for achieving
Excellence in Productivity, Quality, Innovation and Management.
 Manual Limestone Mine in Mines Safety Weeks (MSW) and Mine

Environment & Mineral Conservation week (MS & MCW) participated in
various competitions from 2002-03 onwards and various prizes were won in
consecutive years from 2001 onwards till date.
A. Various Prizes were won by Rajban Unit organized by Directorate of

Mines Safety Ghaziabad Region as detailed below.
2004-05 2005-06 2006-07 2007-08
 1. Mine working & Roads First - - First
 2. Explosives Third Third Second Third
 3. Training & Personnel Second Second First -
 4. Overall Performance First Third Third Third
 5. Publicity & Propoganda First - - -
 6. Noise & Air Pollution Third - - Third
 7. Welfare, House-keeping First Second - First

and Protective Equipments
B. Mines Environment & Mineral Conservation week organized by Indian

Bureau of Mines, Dehradun
Region for the year 2004-05, 2005-06, 2006-07 & 2007-08.
"DHRUV" Trophy for Large Mechanized Mine for extra-ordinary efforts for
the protection of Environment & Mineral Conservation.
C. Various Prizes were won by Tandur Unit for mines safety (DGMS awards
for group large mechanized mines) & mines environment and ,mineral
conservation (IBM awards) as detailed below
2006-07 2007-08
Mine Working Second Prize Second Prize
Top Soil & Water Quality Management Second Prize Second Prize
Air Quality Management First Prize -

Following prizes were won by Bokajan Unit during "North East Mine
Environment and Mineral
"Conservation" 2007 -08
A forestation Third Prize
Reclamation & Rehabilitation First Prize
D. Following Prizes were won by Bokajan Unit during mines safety week for the
Year
2005-06
Open Cast mines Working Third Prize
Publicity and Propaganda Second Prize
General Health & Welfare First Prize
Drilling & Dumper Operations Third Prize
Overall mines Performance Second Prize
Mines Survey & records Second Prize
The Bokajan unit won the First Prize in "Mines Waste Dump Management"
among North-East Mines during Mines Environment Conservation Week under
the guidelines of Mines Statutory Body "Indian Bureau of Mines".
 3. CCI has been awarded the 'All India Organizations of Employees

Industrial Relations Award' for the year 1993-94 for promoting sound
industrial Relations environment.
 4. May Day Award 1994.'
 5. Bokajan Cement Factory has bagged the National Safety Award for the
year 1990.
 6. Kurkunta Cement Factory has bagged the National Award for energy
efficiency in Cement Industry for the year 1989-90 awarded by the National
Council of Cement & Building Materials (NCCBM) in association with
Ministry of Energy.
 7. CCI has been awarded second prize under Indira Gandhi Raj Bhasha
Award for 1987-88 for outstanding achievement in promoting the official
language policy of the Government.
 8. The Annual Report and Accounts (1986-87) of the Company were highly
commended and awarded the plaque by the Institute of Chartered
Accountants of India (1988).
 9. CCI has been awarded the International Asia Award 1984 in consultation
with the Chamber of Commerce and Industry for distinguished contribution
towards development and evolution of economy in Asian Area (1984).
commended and awarded the plaque by the Institute of Chartered
Accountants of India (1984).
 11. Mandhar Cement Factory was selected for productivity award (second
best among all cement factories) by the National Productivity Council for the
overall productivity for the year 1983.

 12. Kurkunta Cement Factory which had operated at more than 110 percent
capacity during 1982-83 was adjudged by the National Productivity Council
as best among all factories in Cement industry for its highest overall
productivity in the productivity year 1982.
 13. Mandhar Cement Factory was adjudged by the National Productivity

Council as the best in terms of 'Energy Conservation' which is one of the
core factors of productivity, for the year 1982.
 14. The Annual Report and Accounts (1980-81) of the Company were
adjudged. the best and awarded the silver shield by the Institute of Chartered
Accountants of India (1982.)
Commended and awarded the plaque by the Institute of Chartered
Commended and awarded the plaque by the Institute of Chartered

2.11 Organization Chart
Communication within the organization is free and informal most of the time.
Each one in the organization is clear about his role i.e. duties and responsibilities.
There is a cordial relationship between superiors and their subordinates. Formal
communication is hardly found. Superiors are used to give instructions to their
subordinates in clear terms and in informal manner. That makes the subordinates feel
comfortable and understand their duties to be performed. It is common scene that
superior himself coming to the subordinate and giving him directions.
Management Decision - Making

Like any other organizations, the policy decision is taken at the top i.e. by the
Board of Directions, subject to the provisions of bye-law, and directions conveyed
in resolutions of General Meetings of the society. The Board has full authority to
carry on the business of the society. The Board may meet as often as it considers
necessary for the transactions of the business but not less than once a month. The
members of the board are personally liable for all transactions conducted in
contravention of the Byelaw. Provision 38 of the bye law lists down the business
of the Board. To quote some of them:-
 To dispose of applications for membership and for share and their

transfers.
 To raise loans and prescribe conditions on which deposits may be raised.
 To check the accounts of the society.
 To institute, defined or compromise legal proceedings.
 To sanction working expenses.

ORGANISATION CHART
Chairman - cum
Managing Director
Director Director Director Director Chief VIG

(PER) (FIN) (MKTG) (OPNS) Officer
Sr. Manager CMP DGM ZM ZM ZM

(PER) (FIN) North East South
Manager
Mktg.
Addl. D.G.M. Sr. Mgr.

GM (M.M) ADM
GM GM GM GM GM GM D.G.M. Sr.Mngr. .
(RJO) (TDO) (BKO) (MDO) (KKO) (NYO) (OPNS) G&M

Fig. 3.1 (Organization Chart)
2.9 Social Responsibility

Social responsibility has been assuming increasing importance and there is
growing awareness among the Corporate Sector these days that every company
should contribute positively towards the 'social goals. One of the protagonists of
Social Audit believe three reasons for acceptance of Social Responsibility,
They are:
 Management has become separate from ownership and is less concerned

with the preservation of capital and more interested in performance
which can have social component.
 Companies should concern themselves with non-profit social activities.
 Income as a measure of performance has been deemphasized in favor of

future potential and social image.
Apart from the primary role of increasing the cement production and making
cement available in needy, remote and back ward areas of the country, the
Corporation has been, suomoto, bestowing considerable attention towards
contributing to the Society and the Community at large by adopting villages
adjoining its operating units to make them better place to live in. CCI has been
providing reasonable medical and educational facilities to the locals through its
own health centers and educational institutions. CCI also has been engaging
themselves in improvement of other infrastructure like road, water supply facilities

and development of non conventional energy sources to the adopted nearby
villages. In the commitment of environmental improvements, CCI has been
developing parks, play grounds and is also planting/rearing trees
As part of anti-pollution measures, CCI is committed to make the environment

around its factories dust free by installation of ESP systems in the old plants not
having this facility.
All new plants have these systems already. The Conventional measurement of
profitability and growth as reflected in the profit & loss statement and the balance
sheet is not adequate enough to reveal extent of contribution business houses had
made to the community in discharge of its responsibility to various facets of
society. It may perhaps take some more years before we develop suitable
techniques for measuring social and community contribution with relative degree
of confidence and accuracy. Nevertheless, we have taken inspiration from
standards and concepts evolved by David F. Linowes and the Abt, Associates
Annual Report 1972 which provide guidelines to draw social statement of various
social events enervating as by-products of a business activity. CCI has been
making efforts to bring out "Social Account" by drawing upon the guidelines of
"Abt: Associate Annual Report 1972' with such modifications as considered
suitable. This is the Twenty 3rd year in succession in which such an account is
being projected and included in the Annual Report of the Company. The Social
income statement comprises three sub statements each showing Company's social
impact separately on staff, community and the general public comparing the
benefits vis-a-vis the detriments (Costs) to the Society. In this connection, it may
be taken note of that Social Accounts are "Society's statements" and not of the
Company, as they portray the total social benefits drawn by the Society from the
Company's multifarious operations as well as the detriments developed on the
society due to the Companies activities.
The Environment
From the outset, CCI has believed that a cement plant cannot flourish at the
cost of the environment. That's why it adheres to the most rigorous international
environmental norms.
The pollution levels at all its cement plants are even lower than the rigorous Swiss
standards of 100 mg/NM3.
At the Himachal Pradesh plants, surface miners have been employed to scrape the
surface of the mines. Thus ensuring that all the mining is totally blast free. There is
no noise or air pollution.

FUNCTIONAL DEPARTMENTS
 HUMAN RESOURCE DEPARTMENT
 FINANCE DEPARTMENT
 PRODUCTION DEPARTMENT
 MARKETING DEPARTMENT
 PURCHASE DEPARTMENT
 QUALITY ASSURANCE DEPARTMENT

Functional Departments:
Human Resource Department
“Human Resources” are of vital importance and significance to an enterprise and
constitute a primary of the total resource held. A peculiar aspect of “human
resources” is that while these have infinite potential yet whatever is realised out of
this resource is generally akin to the tip of the iceberg the remaining whole lot
lying submerged untapped. Deliberate efforts have therefore, to be made to
augment the gap between „Actual‟ and „potential‟ “human resource” may also be
branded as “Mother Resources” through the medium of which other scare resource
viz. Machines, material, money are organized, co-ordinate, directed and controlled.
Maximum realization of the Potentialities of this “Mother resources” is of crucial
importance for the success of an enterprise. The in-house management and
leadership styles the participative, collaborative and supportive climate, the
motivation environment, care concern and fellow feelings for each other, the
freedom and flexibility to operate within given frame-work of organization goals
and objectives productivity oriented performance yard sticks and continued
management‟s positive awareness for training & development effort to keep the
threat of human obsolescence at are some of the essential inputs for tapping this
resource by mere efflux of time unless they are effectively and meaningfully put
to use continually .
CC is fully conscious of these phenomena and utmost attention and priority to

maintain the human asset of fine fettle. The procurement, development,
compensation, integration and maintenance of human resources are thoughtfully
planned, skillfully organized, carefully controlled and deftly directed so as to
secure the meaningful and the individual‟s needs, organizational goals and social
objective are successfully accomplished.
A good insight into existing human potential can be well perceived through the
profile of the human power distributed profession wise and age wise 15.35
percentage of the total employee‟s strength of CCI represent technically and
professional qualified degree/diploma holders. As such 49.18 percentage of total
strength of the organization is in the age group of 26-50 year. However, average

age of our employees comes to50 years. The broad distribution of CCI human is as
under:
Administrative Department
Mr. A.K. Srivastava is the Chairman and Managing Director and including
them, CCI is having six Board of Directors. All the major policies and decisions
are framed by administration department. CCI policies (top to bottom), intake of
new employees, market policies is taken by Administration Department. The
department is having the strength of highly intelligent six members forming a
cutting edge team. Presently CCI is trying to increase its business in market and as
well as capturing more shares of domestic market. Production is the functional
3.2 Production Department
Area responsible for turning inputs into finished outputs through a series of
production processes. The Production Manager is responsible for making sure that
raw materials are provided and made into finished goods effectively. He or she
must make sure that work is carried out smoothly, and must supervise procedures
for making work more efficient and more enjoyable.
Five Production Sub-Functions
In a manufacturing company the production functions may be split into five

sub functions:
 The production and planning department will set standards and targets for

each section of the production process. The quantity and quality of products
coming off a production line will be closely monitored. In businesses
focusing on lean production, quality will be monitored by all employees at
every stage of production, rather than at the end as is the case for businesses
using a quality control approach.
 The purchasing department will be responsible for providing the materials,

components and equipment required. to keep the production process running
smoothly. A vital aspect of this role is ensuring stocks arrive on time and to
the right quality.
 The stores department will be responsible for stocking all the necessary
tools, spares, raw materials and equipment req~ired to service the
manufacturing process. Where sourcing is unreliable, buffer stocks will need
to be kept and the use of computerized stock control systems helps keep
stocks at a minimal but necessary level for production to continue
unhindered.
 The design and technical support department will be responsible for

researching new products or modifications to existing ones, estimating costs
for producing in different quantities and by using different methods. It will
also be responsible for the design and testing of new product processes and
product types, together with the development of prototypes through to the
final product. The technical support department may also be responsible for
work study and suggestions as to how working practices can be improved.
 The production department will be concerned with the manufacture of

products.
This will include the maintenance of the production line and other necessary

repairs. The works department may also have responsibility for quality
control and inspection.
A key aspect of modern production is ensuring quality. The term quality means
fitness for purpose i.e. a product; process or service should do exactly what is
expected of it.
Process of manufacture:
Production utility and services departments of the product:
The factory manufactures ordinary Portland cement and dozzolana cement by

adopting “Dry Process”
High grade limestone is mined at the company‟s mines located at about 12 kms
from the factory. The mining operations are mechanized. The limestone mind is in
the form of boulders of 300 mm to 450 mm size. These are transported by road.
By contractor to crusher located at about 2 kms away from the mines face. The
boulders are crushed to less than 25 mm size and transported to the factory by
means of a by cable ropeway of which each bucket is of 1.5 tones capability.
The crushed limestone on receipt at the factory is stacked in piles at the qantry.
From the qantry it is fed to a hopper by travel crane. Correcting materials such as
iron ore/dust. Shale, and sandstone are added to the limestone and fed to the raw
mill. In the raw mill the limestone along with the additives is ground to the fines
which is known as raw meal. The air separator in the raw mill separates the fines
and coarse materials are again fed to the raw mill. The silos have two compartment
blending silo and storage silo. Compressed air is circulated continuously for 4 to 5
hours in the blinding silo to homogenize the raw mill. The homogenized raw meal
is stored in storage silo.

From the storage silo, the homogenized raw meal is pumped to the preheated by
FK pump through screw conveyor elevator and weigh feeder. The preheated is four
stage suspension type. Hot air is circulated by ID Fan through cyclones in four
stage to achieve the desire temperature.
The raw meal from the preheated is fed to rotary kiln from one end, pulverized
coal is fed from other end. Clinker is formed in the coal. Clinker is formed in the
form of granules at about 14000. Decarbonation also takes place at this stage. The
clinker is cooled to 400oc in the planetary coolers and stored in the gantry mill
through conveyor belts.
Other materials likes qypsum, brick bats, fly ash, rice husk ash etc, are also stored
in hoppers, the clinker, alongwith these other additives, required is fed to the
cement mill through feed tables from the hoppers. The additives will depend on the
quality of cement to be produced pozzolana or ordinary materials are ground to
fines by rotation. The ground cement is stored in silos. Compressed air is circulated
continuously inside the silo to keep the cement intact.
The cement is extracted from the silos through screw conveyor and elevated to the
fluxo machine hopper. The cement is packed in bags by rotary fluxo packer, each
bag containing 50 kg of cement.
Total quality management
Every employee is expected to take responsibility for managing quality

issues in order to make sure that waste is minimized and quality maximized. This
is often referred to as total quality management and is part of the lean production
methods used in modern industry.
For businesses to be competitive, Production and Marketing need to work in an

integrated way. Marketing is concerned with knowing and understanding the
requirements of customers, so that Production can provide the market led products

that are required. This also requires excellent communication systems to be in
place.
Incumbent is primarily responsible for the effective operations of quarries, raw

mills, kilns, cement mills, dispatch, plant for truck and rail wagons, and process
control of production lines. Incumbent is accountable to Plant Manager for all
matters related to Production Department.
Duties Performed
 Plans, directs and supervises the activities of personnel assigned to

Production Department. Performs supervisory functions and exercises
authority at the Department Head level as established by management.
 Plans, directs and coordinates the development of a product mix to ensure

smooth operation and reduced costs of prime quality products. Includes
reviewing, analyzing and evaluating the use of various raw material
alternatives in the production process and determining the costs and benefits
of using such alternative raw materials.
 Coordinates and ensures the efficient planning for production and quality
control of Type I & Type V cement and/or Oil Well cement. Includes
coordinating with Marketing for determining quantity requirements for the
various types of cement.
 Coordinates with the respective maintenance organizations to ensure that

Plant equipment and machinery will be readily available for production
purposes in line with the production plan.
 Initiates and directs studies to determine raw materials availability at

Company quarry areas, normally the gypsum, limestone and clay quarries.

Such studies are to determine the quantity and quality of raw materials
available at areas designated for the quarries.
 Initiates and directs studies designated to improve the productivity and

efficiency of raw mills, kilns and cement mills. Such stu<;lies include but
are not limited to methods of increasing refractory brick life, use of grinding
media, methods of reducing fuel requirements, reducing waste of products
such as kiln dust, etc. Studies must clearly show the cost! benefit of such
improvements.
 Monitors results of tests performed by Quality Control Division and directs

corrective actions for causes of variances in the quality of the products
produced at different stages of the process. Also ensures effective
coordination between Quality Control Division and respective Divisions
within the Department on matters related to process and quality control.
Work Contacts
Have regular contacts with various Department and Division Heads in

Operations and with Deputy General Manager, Marketing for coordination of
Department dispatch operations.
External contacts are limited to Production personnel of other Companies

and suppliers of refractory bricks, raw materials, grinding media, kiln chains, etc.
Independence of Operation
Reports to Plant Manager. Works under broad directives, policies and

professional standards. Work accomplishments are subject to review by Plant
Manager. Confers with Plant Manager on matters of importance related to
Production Department.
3.3 Financial and Accounting Management
The importance of finance in the business is same as the importance of the

spring in the clock. Finance is required from the starting of the business until it
terminates, as a means of the business transaction. Finance is the blood of the
business without which an enterprise cannot survive.
"Finance is that administrative area or set of administration function in an

organization which relates the arrangement of cash and credit so that organization
may have the means to carry out its objective as satisfactory as possible".
Meaning of Financial Management
 Financial management is the concern with the managerial decision that

results in the acquisition and financing of long term and short term credit of
the firm. Financial management is a managerial activity, which is concern
with planning and controlling of the firm financial resources.
 In L.D.P.M., there is a separate department of finance and Accounts, which

handles different financial transactions and keeps on track of the revenues
and expenses of the company. The finance department manages by top level
management.

Sources of Finance
Sources of finance means medium through which the business enterprises gets the
finance for establishment and for smooth running of the business. There is two
type sources of which is given below
Long-term Sources of Finance
It is a source of finance, which is required for long time and it is a permanent

source of finance.
Need for Long Term Finance
Any business organization needs finance mainly for two reasons
 To finance long-term requirements.
 To finance day-to-day short-term working capital requirements.
The long-term requirements for finance include funds required for
 Setting up of the firm.
 Expansion.
 Modernization.
 Diversification.
 Replacement of existing machines.
 Other similar capital expenditure decision.
Actually, L.D.P.M is the private organization which is family managed. Therefore,

they do not issue any share to the public. They issue shares within their relatives

and friends.
Short-term Sources of Finance
Short-term source of finance is a fund, which is required to the firm for their day-
to-day operation or smooth working of the organizations operations. In a current
era, major firm's use following sources for their short-term requirement
 Commercial Paper
 Certificate of Deposit
 Inter corporate Deposit
 Factoring
 Bank Loan
Following source of finance used by L.D.P.M. for their short term requirement of
fund
 Bank Loan
 Cash Credit (C.C.)
3.4 Marketing Department
Marketing Policies
From time to time, advertisements are released by our Zonal/Regional

Offices inviting applications for appointment of Stockiest/Distributors. The
application form can be obtained on payment from CCI Offices. Based on the

present line of business and financial status, appointments are made. An agreement
is executed between the party and CCI after obtaining security deposit. Generally
persons dealing in steel, building materials and other allied products, unemployed
youths, SC/ST and persons from villages having not more than 5000 population
are given preference.
Marketing Network
In line with its consumer oriented marketing policy, CCI is committed to

supply best quality cement at right price and on time. Thus CCI Cement is
marketed through a well established network of Zonal offices, Regional offices,
Dumps and authorized Stockiest/Dealers/Distributors. However, the bulk
consumers, Govt. Depts., PSU's etc. are contacted directly by Marketing/Sales
officials of CCI and orders are obtained through participation in
tenders/submissions of quotations.
For any further details/enquiries contact Marketing/sales personnel at Corporate/

Zonal/ Regional offices as given below.
3.5 Quality Assurance Department
A Quality Assurance dept. at Corporate office with representatives at each

cement manufacturing plant is the backbone of Quality, for the product
manufactured by CCI. This cell is directly reporting to C&MD regarding all
quality matters.

One executive of Production dept. at each unit has been made responsible for
quality assurance. All these executives at unit level are responsible for following
jobs:
To ensure that quality of cement conforms to the laid down standards relating
to fineness, strength, expansion, ingredients etc. and only quality product is
sent out of the factory.
To carry out physical & chemical tests over and above the normal tests
required for the purpose of production by taking necessary number of samples
from each lot.
To carry out inspection of bags at the time of packing as well as to conduct

random sampling tests to ensure that the bags are of good quality and the
weight of the loaded bags are correct.
The short weight bags are not allowed to move out of the factory.
The Executive (QA) checks the details of branding on the bags before packing
of cement.
The Executive (QA) is responsible to monitor adherence to all the stipulations

made by the Indian Bureau of Standards for various tastings. He also monitors
the conditions of various equipments and other stipulations.
The Executive (QA) monitors the mode of sampling by Production

Department for testing of various input materials at different stages and make
comprehensive report to General Manager with a copy to Manager (Prod)

C.O.
To carry out checking of calibration of the testing machines on random basis.
To innovate the basic method of Quality Control, introduce new concepts relating
to total quality management, its implementation through Production Department
and percolation of total quality management as well as quality consciousness down
the line through Production Department.
To ensure that Weekly Quality Assurance Report in the prescribed format and
Daily Quality Messages are sent to C.O.
For the purpose of collection of samples and carrying out the necessary chemical
& physical tests, the employees detailed at various points including that of
Laboratory under the Production Department, extends necessary services to the
Executive (QA).
The duties and responsibilities of Executive (QA) at the Unit does not include day-
to-day operations in the Production Department. All kinds of tests required for the
production and inspection of inward materials continue to be performed by the
executives of the Production Department.

AUDITED ACCOUNT FOR THE YEAR 2009-2010
(Rs. in Lakhs)
Sales & dispatches and accretion/ (Discretion) to stock 33425.69

Other Income 3462.44
Raw Materials Consumed 3640.48
Stores and Packing material consumed 1639.50
Emp. Remuneration & Benefits 4597.46
Interest 3752.20
Depreciation 888.27
Other Manufacturing Expenses 17095.32
Profit(+)/Loss(-) 5274.90
Equity 81140.74
Reserves & surplus – Loans 46875.17
Net Fixed Assets 10733.75
Other Assets (Including DRE) 1906.88
Current Assets 49033.50

Current Liabilities 36058.56
Capital W.I.P 1577.20
Other Intangible Assets 100823.14
Capital Employed 23708.69

No. of Employees(Nos.) 107

CHAPTER-6
MCKENSY’S
1MCKENSY'S 7S FRAME MODEL WITH SPECIAL REFERENCE TO

ORGANIZATION UNDER STUDY
The 7's Model is better known as MCKENSY'S 7'S FRAME MODEL. This is
because the two person who developed this model and it is developed by Torn
peters and Robert water man, have been consultants at Mckinsey & Company. They
published their 7's model in their article “Structure is not organization" (1980) and
their books " The art of Japanese Management" (1981) and Search of Excellence"
(1982).
The Model starts on the premise that an organization is not just structure, but
consist of seven elements namely, these seven elements are distinguished as so
called Hard 'S' and soft 'S'. The hard elements are feasible and early to identify.
They can be formed strategy, statements, corporate plans, organizational charts and
other documentation.

The Hard S' are namely following belows.
 Strategy
 Structure
 Systems
The soft S' are namely following belows,
 Style
 Staff
 Skills
 Shared value
STRATEGY:
The Strategy adopted by the company is based on the price prevailing in the
market. Company uses the waste elimination strategy by way of using the waste in
manufacturing the by products. The various by products manufactured by the com-
pany as following below,
Molasses is used as major content in production of wines and other alco-

holic products. So it is sold to liquor industry, and income is earned 2 crores per
month.
Bagasse is used for Power Generation and Fresh mud sold to the farmers
during the process, which they turn use to fertilizer for growing the sugar cane.

SYSTEMS:
The company used FIFO that is First in First out inventory for maintaining
an inventory, company maintains various account book for holding the inventory
in an efficient manner.
STYLE:
The company's Decision making is done by way of selecting the tender as

government decides on sale to be done by the companies in a particular month..
STAFF:
Staffing is the process of acquiring the resources for the organization and
assuring that they have the potential to contribute to the achievement of organiza-
tional goals.
SKILL:
Employee skill is identified by way of performance appraisal; depending on

the strength and weaknesses of the employee the training program is conducted.
The company has skilled, unskilled, and semi skilled labors. Depending on the job
nature and importance of the job, and on-job training will given to them.

SHARED VALUE:
Guiding concepts, fundamental ideas around which a business is built-must

be simple, usually stated at abstract level, have great meaning inside the organiza-
tion even though outsiders may not see or understand them. The Maruti
Khandsari. General principles of conduct and action can be summarized as
follows.
Principles of conduct
1. Professional commitment
2. Respect for others
3. Integrity
4. Loyalty
5. Solidarity
Principles of action
1. Respect for law

2. Caring for the environment
3. Workers health and safety
4. Employee rights.

CHAPTER 4
SWOT ANALYSIS
Strenth
 Brand image
 Upgraded technical skills
 Wider market all OEM (overall equipment manufacturer)
 Highly fund flow due to collaborator / investor
 High share holder values
 Highly skilled employees
 Growing company
 Good reputation among customer
 Cost as comparison to the competitor cost is less
 Machinery are bought from JSM (best Japanese company producing
technical machines)
 Varity of machines (big and less tonnage machines)
 Good distributions network
 Testing machine
Weakness
 Follow up strategy
 Less cost provide to a vendor create a problem to OEM
 Follow up as there standardized

 Contribution should be 40 % of the sales value
 Demand of the customers to buy more machines
 Changing modules is time consuming
 Different range of machines create problems in maintenance
OPPORTUNTIES
 Cement sector is a high growing area

 Launching of new technology
 Customer preferences changes
 Govt. policies and tax reduction
 Removal of trade barriers
 Provision of EPCG license
THREATS
 Trades barriers
 Technology changes
 Entering of new competitor in a market
 Competitor cost
Competitors better distribution channel

FINDING, SUGGESTION AND CONCLUSION
Findings
 CCI carries a good image in the consumer's mind.
 Most of the retailer's are satisfied from the distribution service of CCI.
 There is good demand for CCI products throughout all the consumer classes.
 Distributors are choosy about their distribution pattern and therefore prefer
to work on cash and efficient retailers ignoring a mass of other small outlets.
 Concentration on top outlets.
 Ignorance of small provisional stores who have the potential to sell CCI
products.
 It is also noticed that the sales persons are reluctant to take small quantity
orders.
 Dealers are concerned with the credit to great extent.
 Salespersons usually work as per their convenience.
 Dealers have some level of dissatisfaction with some front-end sales persons
of CCI products.
 Advertisement plays an important role as it helps in stimulating demand for

the product.
 There is huge demand in the corporate world.

 The level of awareness among the customers regarding the product, quality,
range of products etc of CCI products is good.
 The perceived quality of CCI products among the customers is high when
compared to other products.
 As CCI products being the strongest brand in the industry, many customers
prefer only CCI products even if the competitors offer products of equal or
better quality.
 Most of the Top outlets have equivalent sales of competitor products too
 Good relationship ties between manager and sales people.
 Consumers are not totally aware of the product range of CCI products.
 Most of the CCI customers are satisfied with the quality and price of the
products.
Suggestion
 Implement New approach plans
 Work on Efficient Beat plans only by including weekly and fortnightly

plans.
 Attractive incentives to sales persons.
 Sufficient stock needs to be maintained at the C & F agents to avoid short

fall.
 Advice salespersons to manage time so as to work efficiently.
 Cover each and every outlet possible.

 If the Credit Terms can be little more liberalized more dealers will be
willing to keep more CCI products.
 Create awareness among consumers as to the benefits of the products.
 Work efficiently on claims and damages.
 Team of sales force should be maintained on a regular basis to negotiate

with lost dealers, so that the company can expand its distribution network.
 Feedback should be taken from the dealers on a regular basis to avoid

dissatisfaction and frustration in dealers towards the company.
 Tap new markets like institutions, corporate and medical stores like Cadbury
& Nestle.
 Increase shelf life by having an efficient supply chain management.
 If any production stock goes below the minimum stock level fresh stock
should be supplied without any delay.
 Top outlets should be in constant touch so as to keep the stock level always
above minimum level.
 Avoid stock shortage.
Regional promotions need to be carried out so as to concentrate on a particular

region rather than a country as a whole.

Conclusion
CCI - Provide for setting out the practical regime of right to information for
citizens to secure access to information under the control of public authorities, in
order to promote transparency and accountability in the working of every public
authority.
The bidders for 10 plants of Cement Corporation of India (CCI) have started
the exercise of due diligence, which they are likely to complete in the next month.
The government expects to sell CCI by the end of this year.
The government decision on CCI, which has been incurring heavy losses
over· the years, is very clear: any units that are not sold will be closed down. It is
in the process of selling its entire equity in favor of strategic buyers.
So far, the response to CCI privatization has been good. Though no party
has expressed interest to take over the entire company, there are as many as 40
bidders in the race to take over various plants of CCI.
The bidders include major players like Gujarat Ambuja and Grasim.
It may be recalled that CCI is being privatized under the auspices of the
administrative ministry, that of heavy industries, and not under the ministry of
disinvestment.
The IFCI-SBI Caps combine are advising the government on CCI sale.

Meanwhile the ministry of heavy industries and CCI has expedited the
process of voluntary retirement scheme (VRS).
In the last month alone, more than 250 employees availed the VRS, whereas
in the entire financial year of 2000-01 only 57 people had availed the VRS.
Official sources said that the government wants to make the CCI plants
attractive in the eyes of prospective buyers.
Production has declined in the last few years, mainly on account of the
closure of plants. This was the reason that CCI entered into marketing alliances
with Grasim and Zuari in 2001.
Headquartered in New Delhi, CCI has units at Adilabad and Tandur (in
Andhra Pradesh), Bokajan (Assam), Akaltara and Mandhar (Chhattisgarh),
Charkhi (Haryana)
CCI is committed in supplying quality cement to its customers. To achieve this,

fully equipped in house laboratories in manufacturing units keep strict control right
through the manufacturing process from mining of limestone to dispatch of
cement. In new plants, automatic quality control is done through online X- ray
analyzers and computer controlled systems. Research and development center has
also been setup to give backup support for operational efficiency and for
technological innovations.

LEARNING EXPERIENCE:
The main objective of the internship training is to gain knowledge about

functions of an organization, its background, nature of business, its working and
analysis of various product profile of the organization. Staying in the
CEMENT CORPORATION OF INDIA. for almost a month was a platform for

me to know its business conditions in the initial stage and gradual growth.
I had a limited knowledge about 7s frame work, which was learnt in the class
room. But this internship gave me a opportunity to relate those theoretical concepts
to the organizational functioning.
The study helped me to view the process of producing various products

produced in the milk factory. To know the performance of CCI. Produces good
quality of Cement.
Workers are highly satisfied with wage and salary administration and
welfare facilities.
To conclude internship training at CEMENT CORPORATION OF

INDIA. Helped me to relate the theoretical Knowledge to the practical
environment and enlightened me with the knowledge

Cement Industry Profile

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Cement Industry Profile

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INDUSTRY PROFILE

Cement is a key infrastructure industry. It has been decontrolled

Capacity and production

Keeping in view the trend of the growth of the industry in

ADVANCED MANAGEMENT COLLEGE Page 1

Recommendations On Cement Industry

 Further push to housing development programs.

Further, in order to improve global competitiveness of the Indian

ADVANCED MANAGEMENT COLLEGE Page 2

ADVANCED MANAGEMENT COLLEGE Page 3

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Company Production Installed capacity

ACC 17902 18640

Gujarat Ambuja 15094 14860

Jaypee Group 6316 6531

Cement Corporation of India Limited (CCI) was incorporated as a

CCI is a multi unit organization at present having ten units spread

CCI manufactures various types of cements like Portland

CCI with a strong work-force of 1079 employees (as on

For maintaining the ecological balance CCI is launching massive tree

ADVANCED MANAGEMENT COLLEGE Page 6

The Cement Corporation of India, which is a Central Public Sector

Indian cement industry has also acquired technical capability to produce

ADVANCED MANAGEMENT COLLEGE Page 7

CCI was incorporated as a Company wholly owned by Government of India

Issues Concerning Cement Industry

 There is regional imbalance in the distribution of cement industry. Limestone

 Coal availability and quality is also affecting the production.

2.3 Nature of Business

ADVANCED MANAGEMENT COLLEGE Page 8

 Cement, being a bulk commodity; is a freight intensive industry and

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Location: Rajban Cement Plant is located at 60 km from Dehradun and 70

Capacity: 2, 47,000 MT per Annum

Process: Dry process

Type of Cement: Ordinary Portland cement,

Total layout area:

Commencement of Production: 01.04.1980

Facility Available : Own township having 449 Nos. of residential

ADVANCED MANAGEMENT COLLEGE Page 10

iii) Workers : 171

Production during last eight years:

Sales & despatches and accretion/(Discretion) to stock ---6834.04 (Rs. in

Other Income -----213.92 (Rs. in Lakhs)

Raw Materials Consumed -------713.12(Rs. in Lakhs)

Stores and Packing material consumed ---------382.76(Rs. in Lakhs)

Emp. Remuneration & Benefits -------1119.22 (Rs. in Lakhs)

Interest --------20.95 (Rs. in Lakhs)

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Other Manufacturing Expenses ----------3608.23 (Rs. in Lakhs)

Profit (+)/Loss (-) --------1109.83 (Rs. in Lakhs)

Reserves & surplus --------- 7092.57 (Rs. in Lakhs)

Net Fixed Assets --------- 1736.94 (Rs. in Lakhs)

Current Assets -------3050.69 (Rs. in Lakhs)

Current Liabilities & Provision --------3318.95(Rs. in Lakhs)

Capital W.I.P --------196.83(Rs. in Lakhs)

Capital Employed---------1468.68(Rs. in Lakhs)

ADVANCED MANAGEMENT COLLEGE Page 12

Bargaining power of suppliers

Bargaining power of customers

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 L&T cement plants