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ISSN 2454-8707 VOLUME-II,ISSUE-IV, DEC-2016

A STUDY OF RAMCO CEMENTS LTD (MADRAS CEM) AT CHIDAMBARAM


TALUK

S. Jothibasu
Visiting Faculty, Dhanalakshmi Srinivasan Engineering College, Perambalur.

ABSTRACT:
Cementing materials have played a vital
role. They were used widely in the ancient world.
The Egyptians used calcined gypsum as cement. The
Greeks and Romans used lime made by heating
limestone and added sand to make mortar, with
coarser stones for concrete. 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 cement industry is experiencing a boom on account of the overall growth of the Indian economy
primarily because of increased industrial activity, flourishing real estate business, growing construction
activity, and expanding investment in the infrastructure sector.

INTRODUCTION
Cement is an essential component of infrastructure development and most important input of con
instruction industry, particularly in the government’s infrastructure and housing programs, which are
necessary for the country’s socioeconomic growth and development. It is also the second most consumed
material on the planet (WBCSD 2002). The Indian cement industry is the second largest producer of cement
in the world just behind China, but ahead of the United States and Japan. It is consented to be a core sector
accounting for approximately 1.3% of GDP and employing over 0.14 million people. Also the industry is a
significant contributor to the revenue collected by both the central and state governments through excise
and sales taxes.

MARKET
The term Market is derived from the latin word, “Marcatus” which means merchandise trade, or a
place where business is conducted. The term in the common usage refers to a place where actual buying and
selling take place or where buyers and sellers personally meet together to effect purchases and sales. The
clearly means that a Market is a geographical area where commodities are exposed for sale.

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MARKETING
Marketing is total system of interacting business activities designed to plan, price, promote and
distribute want satisfying products and services to present and potential consumers.

MARKETING MIX
Marketing Mix is the term used to describe the combination of the four inputs which constitute the
core of a company’s marketing system. The product, the price structure, the promotional activities and the
distribution system.

EVOLUTION OF THE INDIAN CEMENT INDUSTRY


The story of the evolution of the Indian cement industry is rather long, where it has seen many ups
and downs, but finally has arrived in its maturity stage as it is beginning to gather the benefits of its maturity
stage as it is beginning to gather the benefits of its decontrol by the Government in 1989-90.

INVENTION OF CEMENT
Ever since civilizations first started to built, the world has sought a man made bonding material that
would bind stones into a solid, formed mass. During the Paleolithic Age, men used to enjoy adequate shelter
provided by nature. The Bronze Age witnessed the use of building materials from a clay based mixture and
air hardening lime. The Egyptians advanced to the discovery of lime and gypsum mortar as a binding agent
for building such structures as the Pyramids. The Greeks made further improvements and finally the
Romans developed cement that produced structures of remarkable durability (Cement Association of
Canada 2006). The secret of Roman success in making cement was traced to the mixing of slaked lime with
Pozzolana, a volcanic ash from Mount Vesuvius. This process produced cement capable of hardening under
water. During the Middle Ages this art was somehow lost.

THE BEGINNING OF INDIAN CEMENT INDUSTRY


The attempt to produce cement in India dates back to 1889 when a Calcutta firm attempted to
produce cement from Argillaceous (kankar). But the first organized effort on mass scale to manufacture
Portland cement commenced in Madras (Washermanpet), in 1904, by South India Industries Limited
(Cement Manufactures Association 1964; Gadhok 2000). The factory could not succeed hence it failed.
However, it was in 1914 that the first commissioned cement- manufacturing unit in India was set up by India
Cement Company Limited at Porbandar, Gujarat, with an installed capacity of 10,000 tonnes and production
of 1000 tonnes. Subsequently two plants; one at Katni (M.P.) and another at lakheri (Rajasthan) were set up.
The First World War gave positive stimulus to the infant industry. The following decades saw increase in
number of Plants, installed capacity and production. This period can thus be called the Nascent Stage of
Indian cement industry.

PROFILE OF THE COMPANY


COMPANY HISTORY
Birth of the Ramco Cements Limited (Formerly Madras Cements Ltd): In the 1950s, investment in
Cement Industry was not attractive due to price controls and the massive investments required. Only those
entrepreneurs who were not profit –minded but cared for the country’s development came forward to
invest in the Cement Industry.
when Shri.Manubai Shah, Central Minister for Industries in late fifties came to Madras to meet the
Industries, he called upon Shri P A C Ramasamy Raja and requested him to start a cement factory in TN. This
was readily accepted by Shri PACR and this marked the birth of The Ramco Cements Limited ( Formerly

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Madras Cements Ltd) in 1961. Madras cements limited, govindapuram unit also got ISO 9002 certification in
may, 1998. Silent features of madras cements limited govindapuram for the First time in India the very latest
computerized control system are introduced in the govindapuram unit for efficient operation on energy
conservation.

MISSION
­ To continuously improve productivity through quality, technology renewal and customer focused
operations.
­ To position ourselves in the cement business as a pace setter and grow in the same and related business.
­ To seek green field locations for growth on the basis of the existing operations.
­ To continuously seek quality enhancement in product, processes and responses to various stakeho
lders.
­ To update management practices on a continuous basis and maintain a culture of professional
management.
­ To conserve, product and enhance quality of life for our employees and community.
­ To preserve the credence in our motto “our real resources are the human assets”.

CORE VALUES AND BENEFITS:


­ Customers continued satisfaction and the sensitivity to their needs is our source of strength and
security. If there is no customer, there is no business
­ They do not look at productivity as a game in numbers. We try to learn from others, be committed to
always stay ahead in terms of technology quality.

MANUFACTURING PRODUCTS
­ Ordinary Portland Cement
­ Portland Pozzo lana Cement
The company is the sixth largest cement producer in the country and the second largest in India.
Ramco Super grade is the most popular cement brand in South India. The company also produces Ready Mix
Concrete and Dry Mortar products. In addition, the company also operates one of the largest wind farms in
the country. They are: Pioneer in Cement technology, Sixth largest Cement producer in India, Single largest
Cement Brand in South and Sophisticated R&D Centre in Chennai. It has been known for its penchant for
technology that has kept the company ahead of competition.
MCL was the first to switch from the energy-guzzling wet process to the dry process for manufacture
of cement. with energy costs continuously shooting up, it derived handsome savings and also was the
beneficiary of software developed by the group extensively for the entire gamut of operations- from mining
to the production of clinker and cement. MCL is the first company to implement a full-fledged ERP system in
the cement industry and one of the early adapters among corporation in India. MCL is equipped with a
modern computer based quality control system. Madras Cements Ltd is managed by abroad of directors
comprising of eminent personalities as its members.
The chairman of the board is Shri P.R. Ramasubrahmaneya Rajha, under whose dynamic leadership
the company has grown into a massive organization. The company board brings together a team of
business, administrative, financial and cement technology professionals who provide guidance and
direction to the company’s operations a competitive business environment. Madras Cements Ltd has been a
pioneer in adopting its corporate governance practices comparable to the best in the country. Factories
location MCL operates four ultra modern production factories with a total capacity of 6 Million Tons Per
Annum (MTPA) and they are

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R R Nagar, Tamil Nadu (1.2 MTPA)


­
Jayanthipuram, Andhrapradesh (1.6 MTPA)
­
Alathiyur and Ariyalur, Tamil Nadu (3.0 MTPA)
­

REVIEW OF LITERATURE
MARKETING- A CRITICAL POLICY FOR TODAY’S INFORMATION CENTRE
S.GANGULY AND DEBAL C.KAR
The challenge of coping with the changes in social, technological, economical environment has
forced the library and information centers (LICs) to change their time honored old practices. Pressure for
accountability and the emergence of enterprise culture has led the library and information professionals to
take aggressive actions for financial self- sufficiency. Hence in the present era, the library and information
managers (LIMs) will have to think of producing an information product and project it in the market for
potential users which will help to generate revenue. TERI-LIC contributes in different products and services
are marketed and disseminated to the end users through an effective marketing service area. Most of these
products and services are price-based for the self-sustenance of the centre.

E-MAIL AS A MARKETING TOOL FOR INFORMATION PRODUCT AND SERVICES


M.NATARAJAN
This article deals with the definition of marketing and the strategies for marketing. Forward
marketing, internal marketing and reverse marketing are explained in detail with the marketing plan. The
promotional aspect and advertisement of marketing are explained. To provide quality services librarians
should consider five attributes of IT products and services. Also the use of e-mail as a marketing tool is
explained with the mailing list functions and discussion groups. The pros and cons of the same are given in
brief.

BARRIERS TO MARKETING OF INFORMATION PRODUCTS AND SERVICES


G.MAHESH
In the present information age, wherein information and knowledge are key to societal
development, libraries and information centers are potential source of revenue generation if the resources
of the libraries and information centers are marketed. Ever since the concept of marketing was introduced
to libraries, certain barriers have prevented the libraries in implementing marketing programmes. This
paper attempts to look at the barriers that impede the libraries and information centers from adopting
marketing.

STATEMENT OF THE PROBLEM


The success of every business depends upon the customers, the customer satisfaction and Dealer
service plays a vital role for the growth of the business.
A well planned and executed programme can provide the higher profitability. Introducing better
quality, cost reduction proper distribution channels can develop goodwill of business.
This study assists the company in understanding the requirement and there by improve sales and
launch new product. It also helps a company to understand consumer and dealer expectation from Ramco
cement. The report will help the manufacture to bring about innovative ideas to the industry.
The study is under taken to the Ramco cement industry to analyze the factors which are influencing
the success of the Ramco cement industry.
The research suggestion may be incorporated for the benefit of the company.

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OBJECTIVES OF THE STUDY


­ To analyse the market conditions of Ramco Cement with others.
­ To analyse the marketing environment of Ramco Cement with special reference to Chidambaram.
­ To access level of customer satisfaction.
­ To find out competitive position of Ramco Cement with other marketers.
­ To Analyse Internal marketing factors like Quality of the Product, price, Place and Promotion and
techniques and external marketing factors like social, competitive aspect of Ramco cement.
­ To give valuable suggestion to improve market condition of Ramco cement.

SCOPE OF THE STUDY


The research study covers various cement brand distribution level, This study attempts to find out the
­
satisfaction level among the Distributors and Customers. This study should be useful as a reference for
future study.

RESEARCH METHODOLOGY
­ Field survey method is followed in this study. The study is concerned with Distributors of Ramco cement
at Chidambaram Taluk.
­ The whole study has been conducted with the help of both primary and secondary data. For collecting
primary data from the respondents a specially designed detailed questionnaire was prepared and
information was gathered by issuing questionnaire to the respondents.
­ The questionnaire was administered on 50 respondents are the distributors of cement.
­ All respondents were selected at simple random sampling basis. The research has collected secondary
data from relevant journal ‘s magazines, periodicals, text books and other reference materials.

LIMITATIONS OF THE STUDY


The study is confirmed to Chidambaram Taluk limit only. Therefore, the findings of the study are not
universally applicable.
The study was taken in general point of view of the marketing level on cement in a specific company.
The questionnaire was administrated on fifty respondents alone due to constraints of time and money.
Hence, the opinion and the problems of the respondents of the present study unit need not to be viewed of
the respondents of other areas.

DATA ANALYSIS AND INTERPRETATION


Table No.1
AGE GROUP OF THE RESPONDENTS
Age Group of the
S.No. No.of Respondents Percentage
Respondents
1. Below 25 2 4
2. 26 to 35 10 20
3. 36 to 45 15 30
4. Above 45 23 46
Total 50 100
Source: Primary Data

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INTERPRETATION:
From the above table shows the Majority of 46% of the respondents are in the Age of above 45 years
30% of the respondents are in the Age 36 to 45 years, 20% of the respondents are in the Age 26 to 35 years.
and 4% of the respondents belongs to Below 25 years. Hence, Age is an important factor.
Table No.2
SEX WISE CLASSIFICATION OF THE RESPONDENTS
S.NO Sex No.of Respondents Percentage
1. Male 40 98
2. Female 10 2
Total 50 100
Source: Primary Data
INTERPRETATION:
From the above table, it is inferred that maximum 98% of the respondents are Male, remaining
respondents are Female.
Table No.3
DISTRIBUTION OF THE RESPONDENTS BY THEIR MARITAL STATUS

S.NO Marital Status No.of Respondents Percentage


1. Married 46 92
2. Unmarried 4 8
Total 50 100
Source: Primary Data

INTERPRETATION:
From the above table, it is inferred that majority 92% of the respondents are married, 8% of the
respondents are unmarried.
Table No.4
CLASSIFICATION ACCORDING TO THE FAMILY SYSTEM OF RESPONDENTS
S.NO Family System No.of Respondents Percentage
1. Joint Family 37 74
2. Nuclear Family 13 26
Total 50 100
Source: Primary Data
INTERPRETATION:
The above table indicates, that vast majority of the respondents 74% are joint family and only 26% of
the respondents are nuclear family.

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Table No.5
EDUCATIONAL STATUS OF THE RESPONDENTS
S.NO. Educational Qualification No. of Respondents Percentage
1. Illiterates 2 4
2. Upto XII 7 14
3. Graduates 21 42
4. Others 20 40
Total 50 100
Source: Primary Data
INTERPREDATION:
Above, it is inferred that majority of the respondents that is 42% are Graduates, 40% of the
respondents are others, 14% of the respondents are Upto XII and 4% of the respondents are Illiterates.
Table No.6
DISTRIBUTION OF THE RESPONDENTS BY THEIR OCCUPATION
S.NO. Occupation No. of Respondents Percentage
1. Government Employee 1 2
2. Private Employee 4 8
3. Professional 2 4
4. Business 43 96
Total 50 100
Source: Primary Data
INTERPRETATION:
From the above table it is inferred that the majority of the respondents of 96% are Business, 4% of
the respondents are Professionals, 8% of the respondents are Private Employees and only 2% of the
respondents are Government Employees.
Table No.7
LARGEST MOVING CEMENT BRAND
S.NO. BRANDS No. of Respondents Percentage
1. Birla 6 12
2. Dalmia 5 10
3. Ramco 27 54
4. Shankar 11 22
5. Bharathi 1 2
Total 50 100
Source: Primary Data
INTERPRETATION:
The above table gives that the Majority of 54 respondents feel that the Dalmia Cement is a largest
moving brand, 22% of the respondents feel that the Shankar Cement, Is the next largest moving brand, 12%
of the respondents view Birla, 10% of the respondents view Ramco, and 2% of the respondents are aware of
Bharathi.

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Table No.8
BRAND PREFERENCE OF DEALERS
S.NO. BRANDS No. of Respondents Percentage
1. Birla 6 12
2. Dalmia 7 14
3. Ramco 27 54
4. Shankar 10 20
Total 50 100
Source: Primary Data
INTERPRETATION:
Above table gives that Majority of 54% of the respondents prefer the Ramco Cement, 20% of the
respondents choose Shankar Cement, 14% of the respondents favour Dalmia Cement, 12% of the
respondents view Birla, 10% of the respondents view Ramco, and 12% of the respondents prefer Birla
Cement.
Table No.9
MARKET POTENTIAL OF THE CEMENT INDUSTRY
S.NO. BRANDS No. of Respondents Percentage
1. Birla 6 12
2. Dalmia 5 10
3. Ramco 28 56
4. Shankar 10 20
5. Bharathi 1 2
Total 50 100
Source: Primary Data
INTERPRETATION:
The above table is inferred that Ramco Cement has more than half of 56% Market Potential. Shankar
Cement having 20% of Market Potential. Birla Cement has 12% of Market Potential. Dalmia Cement has
10% of the Market Potential. Bharathi Cement, has 2% of Market Potential.
Table No.10
MARKET DEMAND OF THE RAMCO CEMENT
S.NO. Level of Demand No. of Respondents Percentage
1. Excellent 9 18
2. Very good 19 38
3. Good 21 42
4. Moderate 1 2
5. Poor -- --
Total 50 100
Source: Primary Data
INTERPRETATION:
The table indicates that mostly 42% of the respondents feel that Market Demand is Good, 38% of
the respondents consider that Market Demand is very good, 18% of the respondents accept that Market
Demand is Excellent and only 2% of the respondents feel that Market Demand is Moderate.

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Table No.11
BRAND PREFERENCE OF THE CUSTOMERS
S.NO. Level of Demand No. of Respondents Percentage
1. Birla 5 10
2. Dalmia 5 10
3. Ramco 25 50
4. Shankar 10 20
5. Bharathi 5 10
Total 50 100
Source: Primary Data
INTERPRETATION:
From the above table, it is inferred that half of 50% of the respondents give preference to Ramco
Cement, 20% of the respondents show preference to Shankar Cement, 10% of the respondents give
preference to Birla, Dalmia Cement respectively.
Table No.12
LEVEL OF CONSUMER SATISFACTION OF THE BRAND
S.NO. Brands No. of Respondents Percentage
1. Birla 5 10
2. Dalmia 5 10
3. Ramco 29 58
4. Shankar 8 16
5. Bharathi 3 6
Total 50 100

Source: Primary Data


INTERPRETATION:
The above table shows that Majority of 58% of the respondents satisfy with the Ramco, 16% of the
respondents fulfill themselves with the Shankar, 10 % of the respondents satisfy with the Birla, 10% of the
respondents get satisfaction from the Dalmia and Bharathi Cement satisfies above 6% of Respondents.
Table No.13
MAJOR COMPETITOR OF THE RAMCO CEMENT
S.NO. Brands No. of Respondents Percentage
1. Birla 26 52
2. Dalmia 17 34
3. Shankar 4 8
4. Bharathi 3 6
Total 50 100
Source: Primary Data
INTERPRETATION:
The above table shows that more than half of 52% of the respondents view Birla cement as the major
competitor of Ramco Cement, 34% of the respondents view Dalmia as their competitor 8% of the
respondents view Shankar and only 6% of the respondents view Bharathi.

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TEST 1
TABLE No.14
BRAND PREFERENCE OF CUSTOMERS AND DRIVEN FORCES TO BUY THE PARTICULAR CEMENT
CHI-SQUARE TEST
High
Brands Availability Price Package Advertisement Total
Quality
Birla 1 1 1 1 1 5
Ramco 5 15 2 1 2 25
Dalmia 1 1 1 1 1 5
Shankar 2 4 1 2 1 10
Bharathi 1 1 1 1 1 5
Total 10 22 6 6 6 50

NULL HYPOTHESIS HO
There is no significant difference between Brand preference of customers and Driven forces to buy
the particular cement.

ALTERNATIVE HYPOTHESIS HA
There is significant difference between the Brand preference of customers and Driven forces to buy
the particular cement.
CHI-SQUARE TEST
X2= ∑( Oi-Ei)2 =8.4545
Ei
Where,
Oi = Observed Frequency
Ei = Expected Frequency
Ei = RT X CT
GT

FINDINGS OF THE STUDY


­ The majority of (78%) of the respondents are in the Age of above 45 years.
­ Vast majority (98%)of the respondents are male.
­ It is found that (92%) of the respondents are married.
­ It is found that (92%) of the respondents are married.
­ More than half of the respondents (74%) are joint family.
­ Less than half of the respondents (42%) are graduate.
­ Majority of the respondents of (96%) are in Business.
­ More than half of the respondents (54%) feel Ramco cement is the largest moving brand.
­ It is found that (54%) of the respondents are preferring that Ramco Cement.
­ Ramco cement having (56%) of the respondents feel that market potential.
­ Less than half of the respondents (42%) feel that market demand is good.
­ Majority (50%) of the respondents give preference to Ramco cements.
­ It is found that 50% of the respondents feel that Ramco cement is more profitable.
­ More than half of the respondents (58%) feel that Ramco cement satisfied them.
­ Almost (50%) of the respondents are satisfied with product Availability.
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Majority (64%) of the respondents are satisfied with product quality.


­
It is found that (62%) of the respondents are satisfied with product price.
­
More than half of the respondents (56%) are satisfied with product reliability.
­
Majority (52%) of the respondents view Birla cement as the major competitor of Ramco cement.
­

SUGGETIONS OF THE STUDY


­ The researcher has suggested the following recommendations to the core development of the
marketing of Ramco cement in Chidambaram Taluk on the basis of the findings.
­ Being the largest selling brand, it can increase the market demand by introducing new techniques of
marketing.
­ The margin offered by the company has to be increased to capture a high market position.
­ The market potentially of Ramco cement is to be moderately linked by the innovative techniques.
­ Ramco cement had a wider reception than others. It is suggested new policy can be formulated to
increase the distribution service to the customer.
­ The customer Satisfaction can be increased by introducing new sales method and quality
advertisement.

CONCLUSION
The market conditions of Ramco cement is much satisfaction in Chidambaram Taluk. It is further
added that, the marketing techniques are to be adequately added. The technological development is to be
adopted. Further, thus the Ramco groups of product will be more effectively reaching the customers.
From the above research work, the researcher has concluded that, the marketing environment is
randomly studied with the help of the Survey method observing the dealers experience. It will definitely be
helpful to increase the more potentiality in the cement product marketing in Chidambaram Taluk than other
products. Thus the marketing environment is so good.

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