Cement Survey – Retail market

in Mumbai.

An Exercise carried out to study the

retail market to facilitate in forecast
of Non-retail market.
 Data Collected :

Name of Party Area Brand Maxm bags possible Time

         

300
Desai & Lallubai & Co Girgaum Ambuja-269/bag
2-3 days wid cleareance
of payment

ACC-255/bag -PPC 500

Sharad D Muni Girgaum
3-4 days wid cleareance
Binani-257/bag -OPC 1000  of payment

Allywn traders Girgaum Birla A-1

200
3-4 days

Ultratech-265/bag 500
Cement Corp of India Chembur

PPC   2-3 days

Ambuja-269/bag 1500
RN Traders Dadar

ACC-257/bag -PPC   2-3 days

 Findings :
 Traders/Stockists of Ultratech & ACC boasts that there wont be any procurement
problem due to monsoon.

 For Traders most preferred bags are of Ultratech & Ambuja.Both have quick
response time in terms of deliveries & quantities.

 Bags of ACC are a bit cheaper than Ambuja & Ultratech. ACC utilizes the rail
services for most of its deliveries.

 Rates of bags to dip down by approximately Rs.4-5/- per bag.

 Small builders & contractors mostly go in for JK Laksmi,Binani or Vasavadatta or

Hathi cement.
Hathi being less preffered.

 Ultratech & Gujrat Ambuja supply bulk to Godrej via sea. Due to monsoon
problems do arise in supply. Only ACC’s supply comes via rail.

 No progress about Govt on countervailing duty on imports of cement bags.

 Findings & Suggestions (continue) :

 International Market::
1. Holsim cement has increased its stake in ACC & Ambuja.
showing a strong interest & making powerful presence in
developing countries like India.
2. Holsim cement expanding more- Buys Cemex’s Australia
business for $1.62 billion.

 India's cement industry is likely to record an annual growth of

10 per cent in the coming years with higher domestic demand
resulting in increased capacity utilisation.
 India’s cement industry recorded a growth of 9% in the first
quarter of 2009.
Suggestions :

1. Stock most of the requirement

(maintainence + RMC)for the monsoon
to avoid interruptions in supply. Also we
can take benefit of lowered rates.
2. Need to explore new suppliers in case
of bulk for Mumbai & for bags in Pune.
As in Pune cent percent of procurement
is thru ONE single supplier.