EXECUTIVE SUMMARY:

PROFILE: CHANNEL SATISFACTION/CUSTOMER SATISFACTION

NON-TRADE:
Under non trade we use to visit end users i.e.builders,developers and institutes.
Business to business sale was to be done.Projects of DLF in worli,Patel
engineering in goregaon as one of the biggest residential township in Mumbai.I use
to give presentations showing merits of Ambuja as per stock and price comparable
to Acc and Ultra tech as they are the big players of the market.
Non trade is generally covered by promoters/ canvas which are the middle man
between company and customers.I use to talk with them,were briefing about the
upcoming projects for the future select supply.Non trade consists of RMC plant
such as naman,lafarz group in vadala called as RMC hub.Direct supply to RMC
plants.
Promoting PPC (Portland Pozzolane Cement)[isi455] because this is a newly
launched product of company for RMC.Accounts section was covered for knowing
the payment procedure in non trade for direct party or through promoters.Billing
with party name with code of promoters.

TRADE:
Trade includes distributors,retailers, and wholesalers.Company is having
ARS(Ambuja Retail Stockiest)&ACR(Ambuja Cement Stockiest).50% of market
is covered with bulk and 50% of market with bags.
We use to visit stores as per area assigned for asking the sales,scheme the retailers
want and market situation of other players.
Average sales were calculated of every retailer as per last year and target according
to that was given to them for the month of June, July, august with Chuppa Rustam
scheme. Schemes may be gold cash prices or trip to somewhere.
CHAPTER 1: INTRODUCTION

1.1 BACKGROUND OF ORGANIZATION

It is says that as the famous proverb “NEED IS MOTER OF INVENTION”. As
the starting time of the earth, the man was live in jungle, after that because of some
invention he found cottage and he use it as their house. After that he made a house
by using brick, sand, and clay. After that time man makes great invention and it is
CEMENT. And it is also known as the great revolution in the earth. GUJARAT
AMBUJA CEMENT LTD. was set up in 1986. The main purpose of cement is
construction of houses and buildings. Because of cement it is possible to build up
one floor to hundred floors. Once found of cement there are arising thousands of
company every after short time. And in it is one of the best company of the world.
And it is started in 1983. And now the details of the company are as so on …
Gujarat Ambuja Cement Ltd., (G.A.C.L.) is handled by Sekhsaria & Neotia Group.
Which has launched in 1883? The project was decided to locate at Mahuva in
Bhavnagar District and unfavorable circumstance the location is change and it is
establish in some other place. And it is finallyestablish in the place at Vadnagar,
Taluika Kodinar in Junagadh District. Gujarat Ambuja Cement Ltd. is a Public
Limited Company. It purchased their new land for factory building and housing
colony. They were also motivated by the co-operation of G.E.B. who agreed to
provide 19 MVA power for the plant. Even our Railway provides transportation
services between Kodinar to Vadnagar plant. The construction of entire plant
commenced in March 1985 and completed in August 1986. The company started
its commercial production in 1986. As passing of the time, the golden period came
for the Ambuja came into being "GUJARAT AMBUJA CEMENT LTD"
(G.A.C.L.). They developed its other branches in our country India. And it is great
part of Indian economy. Their plants are…..

1 Gujarat Ambuja Kodinar (Gujarat)

2 Him Ambuja Darlaghat (Himachal Pradesh)
3 Cement Ambuja Roopnagar (Punjab)
4 Guambuja (line 1) Kodinar (Gujarat)
5 Gujambuja (line 2) Kodinar (Gujarat)
About Ambuja Cements Limited:
Ambuja Cements Limited was set up in the late 80s. The cement industry
presented an opportunity of steady growth and ethical competition to the
promoters.
However, a decade later, it became one of world’s most efficient cement
companies producing the finest cement in the world at the lowest cost. While
adhering to the most stringent international pollution-control norms.
Today, Ambuja is the 3 rd largest cement company in India, with an annual plant
capacity of 16 million tones including Ambuja Cement Eastern Ltd. and revenue in
excess of Rs.3298 crores.
More importantly, its plants are some of the most efficient in the world. With
environment Protection measures that are on par with the finest in the developed
world. But the company’s most distinctive attribute is its approach to the business.
Ambuja believes its most valuable assets aren’t cement plants. They are the people
who run the plants.This unique vision is encapsulated in the company’s
homegrown philosophy of giving people the authority to set their own targets, and
the freedom to achieve their goals. It’s called ‘I can’’. This simple vision has
created an environment where there are no limits to excellence, no limits to
efficiency and has proved to be a powerful engine of growth for the company.
As a result, Ambuja has consistently raised the bar in all aspects of the cement
industry.
Be it transportation, plant efficiency, brand building or human resource
development.
Take a look:
First plant set up in record time
When Ambuja set up its first plant in 1986, the accepted time period for installing
a plant was 3 years. Ambuja did it in less than 2 yearsand with a significantly
lower capital expenditure.
In 1993 the company went a step further and bettered its own record. Ambuja's
second plant was installed in a mere 13 months - the quickest time for setting up a
one million tone cement plant.
CSR activities:
Rural Upliftment- Ambuja Cement Foundation has established its office in Sarnad
Gujarat and has undertaken a needs assessment of the four villages where
developmental work has been proposed. Key issues have been identified and initial
activities have been kick-started through participatory methods, and a good rapport
has been established with the villagers. As a part of these activities, a few
important members of the village community were taken to Ambujanagar to be
introduced to the activities being conducted there. The villagers have appreciated
the work being done there and are keen on having similar activities in their villages
too.Development activities in Sanand will be focused on water resource
management and generation of alternate livelihoods.
A Social Impact Assessment -was carried out by ERM, which is an external
resource agency in Marwar Mundwa, Rajasthan, in the areas surrounding the
proposed cement plant. A workshop has been organised by ERM, on the 10th of
April, 2008, at Rabriyawas, for senior management there to introduce the concept
of social impact assessments.
Training to rural communities-At Darlaghat in Himachal Pradesh, ACF partnered
with the Punjab National Bank to establish and run the Skill and Entrepreneurship
Development Institute (SEDI). The Institute aims at providing short-term training
courses for various fields that give the members of the surrounding rural
communities an opportunity for alternate employment.One of the newest courses
SEDI is offering is on operating heavy motor vehicles. Thirteen individuals who
were affected by the Company’s land acquisition are being trained under this
programme. The training is expected to last between three to six months, after
which they will be able to operate heavy vehicles like cranes and dumpers
dexterously. After the training, all those who are trained are absorbed by the
Darlaghat plant.
Education-The company will be creating a Trust of Rs.50 lacs for providing
educational support to all girl children in Darlaghat and Majathal Sanctuary in
Himachal Pradesh. They are providing computer literacy to school in Bhatapara
Krishi Vidyan Kendra work has started in Gujarat which will increase the per
capita income and economic development. It will be fully functional by the end of
this year.Health care-Programmes have been launched on HIV/AIDS problems on
various fronts.- Rally on World AIDS day on December 2007.
Achievement of the AMBUJA CEMENT LTD:
Size of the unit:
There is no any fixed standard to measure the size of unit. but our Govt. of India
has made certain rules for measuring the unit, likewise, when the investments of
the company is above 100 laces, or total employment are more than 400 then it is
considered as a large scale industry. According to govt. rules the "Gujarat ambuja
cement ltd" is large scale company because of it `s forms of company.

Form of company:
The G.A.C.L is a Public Limited Company. In Which:

Share capital is ………………………………..304.48 Crores Rs.

Investment in plant & machinery is…………..1288.94 Crores Rs.
Net current asset is ……………………………418.24 Crores Rs.

Manufacturing process:
Cement is manufactured by using the mixture of limestone, clay, sand, literate,
bauxite and iron and the mixture is burning at a high temperature of 1,400 to 1,500
degree Celsius and the resultant clinker (a final product) is made then it mixed and
grinding with gypsum to form cement for final use.
The process of manufacture is divided broadly into 3 stages…

Stages of process:-
1. Preparation of the raw materials
2. Burning process of the raw materials in kiln and
3. Grinding the clinker to the finished products
Type of Processes:-
There are mainly 3 types of processes to get the final product. These processes are
as follows…
A. Wet process.
B. Semi dry process.
C. Dry process.

A. Wet Process:-

This is the old process of manufacturing of cement. In this process the raw material
grinding with sufficient water, so that the mixture contains 30% to 40% of water.
But it is not useable because it use higher coal consumption 30% to 35% as
compared to dry process.

B. Semi dry Process:-

In this process the raw material are processed in dry state and the grinding raw
meal is neutralized by addition of 10% to 20 % water, and it is final by heat
consumption Process.

C. Dry process :-
This is the modern method of production. In the dry process limestone and clay are
fed into a grinding mill with passing hot air. The materials are heats dried
thoroughly and then reduced to fine powder know as raw meal. the raw meal is
mixed with a little water and formed into nodules in nodulising fan. Their nodules
are then fed into a moving grate through which the hot gases from the rotary klin
are passed. They are dried in pertically claimed. The calcined nodules then fall into
a short rotary kiln of conventional design where they are burnt to form clinker.
The Organization structure of Marketing department of
A.C.:-
✔ Marketing head

✔ Regional marketing head(south-west)

✔ Dy.G.M.(mkt.)

✔ Senior manager

✔ Sales officer

✔ Senior executives

✔ Market representative
1.2 OBJECTIVES:
The management of Gujarat Ambuja decided some objectives to become topper in
the market. And the objectives are as follows:

Channel Satisfaction - Non trade

 Business proposition to Distributors with some specified targets
 Meeting with authorized Promoters/Canvas
 To plan meetings with RMC owners
 Study on Customer Support group

Customer Satisfaction – Trade

 To convert ACS to ARS
 To map the retailers performance in sales
 Bifurcation of bags in various segments
 Study of Pricing Policy
1.3 Limitations:

➢ Although I have tried my level best to prepare this report an error free
report every effort has been made to offer the most authenticate
position with accuracy. But there may be a possibility of some error in
my report also.

➢ As whole of my project and my findings are based on the information

collected through survey fact sheet, hence there might be a possibility
that respondent may have given wrong or partially correct
information.

➢ The research was conducted in a limited area.

➢ The time period allotted for the study was only two months, which
may provide a deceptive picture in comparison to the study based on
long run.

➢ The sample drawn may not be representative of the population as the

survey does not cover the whole of Mumbai.

➢ Few retailers were not co-operative.

➢ Deliberate falsification of answers by the retailers due to time
pressure.
➢ The project was taken as a part of my summer training. As the time
was limited so thesurvey was confined to few stores only.

➢ The opinions of all the persons are often in opposition, non

cooperating, and causingdifficulty in data collection.
➢ People were hesitant to disclose the true facts.
➢ Inability of the retailers to answer few questions which caused
difficulty in data analysis.
➢ Due to time pressure few questions were skipped.
➢ The researcher’s lack of knowledge on local language made my
interactions with the retailers difficult which affected the data
collection.
➢ Type I and Type II errors in estimating the results over the entire
population.

➢ The data collected in my report also contains views and information

provided by the distributor, TSE’s, DSRs. So these observations
mightnot be fully free from errors.
1.4 STRUCTURE OF REPORT:
Chapter 1: Introduction:
This chapter includes a brief description of the company, year of establishment,
mission, vision and awards & recognitions. Apart from this it covers the various
kind of process used in manufacturing cement by the company.

Chapter 2: Literature Review:

This topic give a glimpse of cement industry in India, it first talks about the cement
industry and then major players and recent initiatives by the government.

Chapter 3: Research Methodology:

This chapter describes the research design used, data sources, research instrument
and the sampling process used for the market survey. This chapter also includes the
data analysis based on the survey conducted. The analysis is done separately for
both consumer and channel satisfaction.

Chapter 4: Conclusion:
This chapter is divided into two chapters, his first part covers the findings and the
second part deals with the recommendations made by the researcher. The findings
part covers the summary of analysis made above.

Chapter 5: Bibliography:
This chapter includes the secondary sources used in the report, i.e. Books, internet
and Newspaper.

Appendix A:
Includes the questionnaire of channel and customer.
CHAPTER 2: LITERATURE REVIEW
2.1Indian Cement Industry
India is the second largest producer of cement in the world after China. The
cement industry in India, without showing any signs of recession, continues to
expand rapidly, attracting large capacity addition by major players over the past
few months.
Traditionally, growth of Indian cement industry has remained directly proportional
to the growth of the country’s economy. However, in fiscal 2008-09, despite the
economic slowdown, India produced around 181 Million Metric Tons of cement,
representing a growth of around 7.8% over the fiscal 2007-08. Consumption has
also increased with the same pace during the last fiscal.
We expect that the cement production and consumption both will grow
substantially during our forecast period (2009-10 to 2011-12). Moreover, housing
sector accounts for more than 50% of the total cement consumption in India and
the same trend is expected to continue in coming years.
"Indian Cement Industry Forecast to 2012" provides the rational analysis and
extensive research on the cement industry of India. It thoroughly examines the
current industry trends which are adding to the growth of the Indian cement
industry. Besides highlighting major segments like production and capacity of the
cement industry as well as the consumption of cement, the report also throws light
on the future outlook of these segments. It will help clients to understand the
market dynamics and get an insight of the current and the future outlook of India' s
cement industry.
For the purpose of the report, only large plants have been considered in the total
production and installed capacity of the cement industry. The report also gives
forecast on various segments of the Indian cement industry based on feasible
cement industry environment in India. These include:
 • Cement Production
• Cement Production Capacity
• Region-wise Share of Capacity Addition
• Company-wise Share of Capacity Addition
• Cement Consumption
• Cement Demand by Sector
• Coal Demand by Cement Industry
The forecasts given in the report are not based on a complex economic model, but
are intended as a rough guide to the direction in which the market is likely to
move. These forecasts are based on correlations between past market growth,
growth of base drivers and possible impact of recession in the economy.
The report also includes detailed information about key players in the cement
industry of India including Associated Cement Company Ltd. (ACC), Ambuja
Cements Ltd., Grasim Industries Ltd., UltraTech Cement Ltd., The India Cements
Ltd., J.K. Cement Limited, Binani Cement Limited, Madras Cements Ltd., Prism
Cement Limited, and Jaypee Group.
Ambuja is a leading brand in cement industry. It consists of 25% of market share.
Other big players like ACC,UT have a share of 20%-22%.Ambuja deals with
product like OPC & PPC.OPC is in bulk and plane where as PPC is fly ash
added.OPC is generally used by end user PPC is for RMC.
ACC & U/T both have PPC &OPC.ACC uses 32% for its own RMC where U/T
uses for 33% of stock for RMC.
Ambuja has no RMC plants so customers are the only focus.
Retail segment of Ambuja covers 85% of market where as NON-Trade covers 25%
of market.

2.2 KEY PLAYER:

1.ACC-ACC Limited is India’s foremost cement manufacturer with a countrywide
network of factories and marketing offices. Established in 1936, ACC has been a
pioneer and trend-setter in cement and concrete technology. Among the first
companies in India to include commitment to environment protection as a
corporate objective, ACC has won accolades for environment friendly measures
taken at its plants and mines, and has also been felicitated for its acts of good
corporate citizenship.
2.U/T :concrete is a hardened building material created by combining a binder i.e.
cement (commonly Portland cement), aggregate (generally gravel and sand), water
and admixtures. Although people commonly use the word cement as a synonym
for concrete, it is only one of several components in modern concrete. As concrete
dries, it acquires a stone-like consistency that makes it ideal for constructing roads,
bridges, water supply and sewage systems, factories, airports, railroads,
waterways, mass transit systems, skyscrapers and other structures.
3. BINANI: Binani Cement is the flagship subsidiary of Binani Industries Limited,
the Braj Binani Group with global gross fixed asset value of Rs. 28077 million and
gross income of Rs. 25087 million for the year ended 31st March 2010.
The foundation of success was laid in 1997, when the company commenced
operations in Sirohi District, Rajasthan, after setting up a 1.65 mtpa integrated
cement facility and a 25 MW captive power plant with technological support from
F. L. Smidth, Denmark and Larsen & Toubro Ltd.
Demand for cement reported strong growth during the period 2002- 03 to 2007-08
even as capacity addition remained moderate. This led to tightening of the supply-
demand situation and hardening of prices, which remained strong till the first half
(H1) of 2009-10. Although demand growth has been robust in 2009-10, significant
capacity additions have been exerting pressure on capacity utilization, pushing it
down to around 83% in the first eight months of 2009-10 from around 96% in
2007-08 and 90% in 2008-09. With this, cement prices have come under pressure
since the third quarter (Q3) of 2009-10.
Given the announced capacity additions, ICRA expects the overall capacity
utilization levels to decline further to around 75% in 2010- 11 and stay more or
less at that level in the medium term; however there would be considerable
variations in demand-supply balances across regions. According to ICRA's
estimates, the overall capacity utilization level of the Northern Region (NR) and the
Eastern Region (ER) combined is unlikely to go below 80%, while that of the
Southern Region (SR) and the Western Region (WR) combined would be around
70%.
ICRA's also expects the level of consolidation in NR and ER to be stronger than in
SR and WR combined. Since almost 42% of the announced capacity is expected to
come up in SR alone, ICRA expects cement prices to witness higher volatility in
SR as compared with WR, NR and ER. Already, a few key markets in SR have
reported a sharp decline in prices over the past few months.
While cement capacity utilization and prices are expected to decline in the medium
term, ICRA believes that the extent to which pressures will be felt will depend on
two factors, both of which are to some extent under control of manufacturers. One,
the phasing out or deferment of the announced capacity additions. And two, the
extent to which the shift towards Ordinary Portland Cement (OPC) reduces the
effective capacity of the industry.
While ICRA expects all cement manufacturers to face pressures on realizations
and margins in the medium term, the impact will not be the same for all
companies. Those with leaner cost structures, location advantages, strong capital
structures, and geographically dispersed plants would be in a better position to
absorb the impact of the anticipated softening in prices and declined in capacity
utilization.
With 153 cement plants and a total installed capacity of around 209 million tons per
annum (MTPA) both as of March 2009, the Indian cement industry is the second
largest in the world, the largest being China, which produces over 1 billion tons of
cement annually. During 2008-09, total cement consumption in India stood at 178
million tons while exports of cement and clinker amounted to around 3 million
tons. The industry occupies an important place in the national economy because of
its strong linkages to other sectors such as construction, transportation, coal and
power. The cement industry is also one of the major contributors to the exchequer
by way of indirect taxes.
Cement is a highly freight-sensitive product, given that it is a high-bulk, low-value
commodity, The Indian cement market therefore is largely a regional one, which
also means that the demand-supply dynamics may be different for the various
regions and the country as a whole. Further, as ICRA has observed, bulk of the
inter-regional transfer of cement takes place between NR and ER on the one hand,
and between SR and WR on the other. Thus, while drawing up supply-demand
balances, ICRA divides the country into two regions: NR + ER, and SR + WR.
Over the last few years, the Indian cement industry witnessed strong growth, with
demand reporting a compounded annual growth rate (CAGR) of 9.3% and capacity
addition a CAGR of 5.6% between 2004-05 and 2008-09. The main factors
prompting this growth in demand include the real estate boom during 2004- 08,
increased investments in infrastructure by both the private sector and Government,
and higher Governmental spending under various social programs. With demand
growth being buoyant and capacity addition limited, the industry posted capacity
utilization levels of around 93% during the last five years along with shortfalls in
supply, thereby increasing the pricing power available to the industry. Improved
prices in conjunction with volume growth led to the domestic cement industry
reporting robust growth in turnover and profitability during the period 2005-09.

2.3 Strong consumption growth driven by secular growth

across sectors:
The Indian cement industry reported a strong CAGR of 9.3% during the period
2004-05 to 2008-09. Even during the economic slowdown in 2008-09, growth in
cement demand remained at a healthy 8.4%. In the current fiscal (2009-10) cement
consumption has shot up, reporting, on an average, 12.5% growth in consumption
during the first eight months with the growth being aided by strong infrastructure
spending, especially from the govt. sector. The trends in all-India consumption and
the growth in consumption in the major cement-consuming States over the last five
years are presented in Table 1 and Chart 1.
Table 1: Growth in Cement Demand (All-India)
In million tonnes 2004-05 2005-06 2006-07 2007-08 2008-09 Apr- Nov 09
Domestic Consumption 99 108 114 123 136 149 164 178 100*
YOY Growth (%) 9.7 8.7 5.8 8.1 10.1 9.9 10.1 8.4 12.5*
*Excluding ACC and Ambuja Cement
Source: Cement Manufacturers Association (CMA), ICRA Research

The increase in cement demand over the last few Chart 1: Growth in Cement
Consumption in years has been driven by a buoyant real estate 'Major States'
(CAGR between 2005 and 2009) market (the dip in 2008-09 notwithstanding) and
an increase in infrastructure spending. Further, various governmental programs like
National Rural Employment Guarantee and low-cost housing in urban and rural
areas under schemes like Jawaharlal Nehru National Urban Renewal Mission
(JNNURM) and Indira Aawas Yojana have also provided a fillip to rural demand
for housing.
Within the country, the top five States in terms of cement consumption, viz.
Maharashtra, Andhra Pradesh (AP), Uttar Pradesh (UP), Tamil Nadu (TN) and
Gujarat, accounted for almost 50% of thetotal domestic consumption of cement
during 2008- 09. This is largely a factor of the population levels in these States as
well as the development activities being undertaken there. Within these high
consuming States, AP and TN reported very high growth rates during the last five
years, mainly because of the real estate buoyancy and increased Government
spending on infrastructure. Haryana, the 11th largest cement consuming State in
the country (according to 2008-09 consumption), posted a high consumption
growth rate of more than 14% over the last five years, largely on the strength of the
upturn in real estate.
Going forward, ICRA expects growth in domestic cement demand to remain strong,
given the revival in the housing markets, continued Government spending on the
rural sector, and the gradual increase in the number of infrastructure projects being
executed by the private sector. Thus, the trend in demand growth seen during the
last five years is expected to continue over the medium term. Also, with
Government targeting an over 8% GDP growth rate, cement demand should grow
at 8-10% over the next few years.

2.4 Capacity additions to impact utilisation levels over the

medium term:
Almost all the major players in the Indian cement industry announced capacity
expansion programs 2005-06 onwards, being encouraged by the improving
economic outlook, buoyant demand conditions, strong industry profitability, and
anticipated supply constraints. Such announcements continued all the way till mid-
2008-09 when the economic conditions started deteriorating. The expansion
projects have now started coming on stream (the gestation period being of 24-36
months), and as in March 2009, the country had an installed capacity of around
209 million tonnes, of which around 43 million tonnes were added during the last
two years alone. A part of the capacity addition over the last two years also came
from debottlenecking of existing capacities and increase in the share of blended
cement. According to ICRA's estimates, the industry may be expected to add
another 130-135 million tonnes of cement capacity in phases over the next four
years, that is, during the period 2009-10 to 2012-13.
Of the announced capacity additions, region-wise, SR is expected to account for
almost 42% (highest share) of the additions proposed, followed by NR (around
29%). Capacity addition in WR and ER, which is expected to be 17% and 12% of
the total announced additions respectively, has been constrained primarily by the
lack of availability of limestone reserves in these regions. Of the total capacities
announced, almost 63% are scheduled for commissioning in 2009-10 and 2010-11,
which means capacity additions, would get bunched up during this period.
Going forward, ICRA expects the pace of capacity addition to slow down in 2011-
12, which should stabilize capacity utilization levels that year onwards. However,
should cement manufacturers continue with capacity additions, recovery in
utilization may get delayed. Charts 3 to 6 bring out the distribution of the
scheduled capacity additions over various time periods and regions, taking into
account the announcements made by the various industry players so far.

Outlook: Capacity utilization and prices expected to remain

under pressure in the medium term; Southern region likely to
be impacted the most:
Despite the expected continuance of strong demand growth, the significant
capacity additions anticipated are likely to exert a downward pressure on cement
prices in the medium term, keeping them well below the highs witnessed in H1,
2009-10, in ICRA's opinion. Also, as in the past, cement prices would continue to
vary across regions, depending on the regional supply-demand balances. ICRA
notes that in an oversupply scenario, cement prices in various markets of
aparticular region tend to converge closer to the regional average; currently,
cement prices have been varying from Rs. 150 to Rs. 250/bag within regions.
While the prices of cement across markets are expected to soften over the medium
term, the extent of softening and the duration for which prices remain soft will
vary across regions. ICRA expects the highest correction in cement prices to
happen in SR, given the significant surpluses there, and believes this would also
impact cement prices in a few markets in WR. Cement prices in these regions are
expected to remain soft over the medium term as the surpluses and the level of
fragmentation in available capacity are both likely to remain high here till 2012-13.
ICRA also expects a marginal correction in cement prices in NR and ER, and sees
cement prices remaining at the corrected levels over the next two years, after
which there could be a recovery in 2012-13. The high level of consolidation in
NR and ER would also enable companies retain their pricing power despite the
expected decline in capacity utilization levels over the next two years.
Since the gestation period for a new cement plant is long, ICRA expects certain
recently-announced capacities, which are scheduled for commissioning from end-
2010-11, to be either phased out or put on hold. Such moves by industry players
would reduce supply-side pressures and improve demand-supply balances, thereby
enabling players retain their pricing power.
Given the expectations of price corrections and pressures on profitability, the credit
profiles of domestic cement companies will however hinge on individual operating
efficiencies, financial strengths, and diversity of business operations. Companies
with lower costs, stronger capital structures, and a diversified portfolio of plants
and markets would be better placed to ride out the pressures in the medium term.

2.5 New Investments

Cement and gypsum products have received cumulative foreign direct investment
(FDI) of US$ 1708.69 million between April 2000 and March 2010, according to
the Department of Industrial Policy and Promotion.
Madras Cements Ltd is planning to invest US$ 178.4 million to increase the
manufacturing capacity of its Ariyalur plant in Tamil Nadu to 4.5 MT from 2 MT
by April 2011.
Surya Group plans to invest US$ 873.3 million in a new 5 million MT cement plan
to be set up in Gujarat.
My Home Industries Limited (MHI), a 50:50 joint venture (JV) between the
Hyderabad-based My Home Group and Ireland's building material major CRH Plc,
plans to scale up its cement production capacity from the existing 5 million tonne
per annum (mtpa) to 15 mtpa by 2016. The company would undertake this capacity
expansion at a cost of US$ 1 billion.
Shree Cement, plans to invest US$ 97.13 million this year to set up a 1.5 million
MT clinker and grinding unit in Rajasthan. Moreover, in June 2010, Shree Cement
signed a memorandum of understanding (MoU) with the Karnataka government to
invest US$ 423.6 million for setting up a cement unit and a power plant. US$
317.7 million will be used to set up a cement manufacturing unit with an annual
capacity of 3 mtpa while the balance will be for the 100 mega watt power plant.
Jaiprakash Associates plans to invest US$ 640 million to increase its cement
capacity.
Swiss cement company Holcim plans to invest US$ 1 billion in setting up 2-3
greenfield manufacturing plants in the country in the next five years to serve the
rising domestic demand. Holcim is present in the country through ACC and
Ambuja Cements and holds around 46 per cent stake in each company. While ACC
operates 16 cement plants, Ambuja Cements controls five plants in India. The
Aditya Birla group is the largest cement-making group by capacity in the country
and controls Grasim Industries and UltraTech Cement.

2.6 Mergers and Acquisitions (M&A), PE deals

KKR- Dalmia Cement signed a deal worth US$ 159.57 million in May 2010.
French cement company Vicat acquired a 51 per cent stake in Bharathi Cement
Company Ltd, promoted by Y S Jagan Mohan Reddy, Member of Parliament, to
tap the southern markets, which represent 40 per cent of the total Indian cement
market.

2.7 Training Modules:- Capacity Building

Ambuja Cement Foundation considers capacity building of community members
an important part of development. We conduct training sessions that provide ample
space for interaction with the people. In these sessions there is a free exchange of
ideas and knowledge, which makes the process enriching for both parties.
Training or capacity building sessions aim at catering to the specific needs of the
local population and cover various topics. Agriculture and allied fields, animal
husbandry, water management, self-help group governance and day to day
operation, skill training for development of small scale enterprises and teacher
training are commonly organized at the locations.
ACF conducts sessions for capacity building for the people it works with and also
for its own staff members. The staff attends seminars, conferences, workshops and
exposure visits on a broad spectrum of issues. They then implement what they
have learned from these sessions into their field work. These platforms are
opportunities to exchange ideas and views on issues of social development and
also to network with other similar minded people and organizations. We are also
open to visitors from other organisations in order to share our work and
experiences with them.

2.8Government Initiatives:
The cement industry is pushing for increased use of cement in highway and road
construction. The Ministry of Road Transport and Highways has planned to invest
US$ 354 billion in road infrastructure by 2012. Housing, infrastructure projects
and the nascent trend of concrete roads would continue to accelerate the
consumption of cement.
Increased infrastructure spending has been a key focus area. In the Union Budget
2010-11, US$ 37.4 billion has been provided for infrastructure development.
The government has also increased budgetary allocation for roads by 13 per cent to
US$ 4.3 billion.
Exchange rate used: 1 USD = 46.33 INR (as on June 2010)

Technological change:

Continuous technological upgrading and assimilation of latest technology has been

going on in the cement industry. Presently 93 per cent of the total capacity in the
industry is based on modern and environment-friendly dry process technology and
only 7 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 plant is being implemented with Japanese
assistance under Green Aid Plan. The induction 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
(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. Production of these varieties of cement
conform to the BIS Specifications. Also, some cement plants have set up dedicated
jetties for promoting bulk transportation and export.

Union Budget 2010: Cement prices set to increase:

PublishedDat Friday, Feb 26
: Author: ET Bureau
e 2010
:
Source ET

The introduction of coal cess is proving to be having a multiplier

effect across board in terms of cost rise. Cement companies claim that
production cost will have to rise because of this. This coupled with the excise
rollover of about 2% will surely increase price of cement per bag.

While cement manufacturers did not spell out clearly whether they intend to
pass on the increase in coal cost by Rs 50 per tonne in form of additional cess
to end-users, quick back-of-the-envelope calculations by them indicate the
existing excise rate of bulk cement after the proposed changes will become
10% or Rs 290 per tonne whichever is higher from 8 % or Rs 230 per tonne
now. Clinker price of Rs 300 per tonne will now become Rs 375 per tonne.

Wherever retail cement price exceeds Rs 190 per bag, the existing excise rate
of 8% of retail sale price will become 10%. If the retail cement price does not
exceed Rs 190 per bag, the existing rate of Rs 230 per tonne will stand
enhanced to Rs 290 per tonne.

Grasim Industries’ chief financial officer (CFO) Adesh Gupta said: "The excise
rollover of about 2% will definitely hit cement companies, but this
announcement was inevitable. In fact, cement companies will get further hit by
the proposed cess on coal as it will increase the cost of production as well as
cost of cement per bag. While budgetary allocation for infrastructure has
increased, there is no big picture emerging for the much needed infrastructure
development."
Heidelberg Cement India MD Ashish Guha feels partial rollback of 2% excise
duty and increase in coal cost by Rs 50 per tonne in form of additional cess
will be slightly negative for the cement industry. "The same would, however,
get offset by the thrust on infrastructural and residential sector," he added.
 CHAPTER 3: RESEARCH
METHODOLOGY

3.1 Research Design

The sampling technique used is Exploratory Research.

3.2 Sampling plan:

Survey:
The survey was carried out in Mumbai with the help of structured questionnaire.

Sample Size:

50(Retailers), 2 -5(Distributors)

Sampling method:
Convenience sampling

Area covered:
Bandra to Andheri

3.3 Data Collection Technique:

Primary Data – Survey through questioner
Secondary Data-Through magazines, web sites
 3.4 Data Collection Instrument:
Structured Questionnaire disguised questionnaire.

Factors Highly Satisfi Nor Dissatisfi Highly

Satisfied ed Satisfied ed Dissatisfi
Nor ed
Dissatisfied
Publicity 2 7 23 15 3

Low 5 3 20 16 6
Defects
Packaging 15 23 8 4 -

Quantity 13 25 6 6 -

CHAPTER 4: DATA ANALYSIS AND INTERPRETATION

4.1 Findings of the project:

Finding of customer:
1.96% of the respondents are selling opc cement.
2.40% of the respondents are selling 500-1000kgs.
3.All the respondents saying that the customers have knowledge about opc cement.
4.Out of the existing retailers 79% of the respondents are satisfied with the
publicity of ppc cement.
5.Among the factors of Ambuja cement quality starts first.
6.Out of existing retailers 99% of the respondents are satisfied with the packaging
of Ambuja cement.
7.Among the existing retailers of Ambuja cement most of them are satisfied with
overall performance of the brand.
8.Ambuja cement provides the better service than other brands and can try to
maintain the same.
9.To avoid the moisture entering cement bags the inner layer of bags can be lined
with plastic coating.
10. Package innovations like hooks in one kilogram bags which will be easy to
carry.
11.The peridocial meetings with the retailers will help to know about expectations.
The main consumer promotional tools are:
• Samples: Offer of a free amount of a product or service.
• Coupons: Certificates entitling the bearer to a stated saving on the
purchase of a specific product.
• Cash Refund Offers: Provide price reduction after purchase.
• Price Packs: Offers to consumers of savings off regular price of the
product. A reduced price pack is a single package sold at a reduced
price. A banded pack is two related products banded together (such as
toothbrush and toothpaste)
• Premiums: Merchandise offered at a relatively low cost or free as an
incentive to purchase a particular product.
• Frequency Programs: Programs providing rewards related to the
consumers frequency and intensity in purchasing the company’s
products or services.
• Prizes (Contests, Sweepstakes, and Games): Prizes are offers of the
chance to win cash, trips or merchandise as a result of purchasing
something.
• Product Warranties: Promise made by the seller that the product will
perform as specified or the seller will fix or refund the customer’s
money during a specified period.
• Point-Of-Purchase (P-O-P) Displays and Demonstrations: They take
place at the point of purchase or sale.
Finding of the retailers:
1.The five kilograms packing is not good in Ambuja cement.
2.At the time of rainy season Ambuja cement are getting hard in the bags.
3.Seasonal offers have been given in terms of business proposition.
4.Conversion of exclusive counters into ARS.
5.Corporate meetings should be done with promoters.
6.Complaint regarding gifts and bonus.
7.retailers are not completely aware of scheme.
8.Momentom,letter paids should be frequently distributed.
9.The system of FD of runs is not understood by retailers.

➢ Trade Promotions:The main objective of trade promotions are:

• Persuade retailers or wholesalers to carry a brand
• Give a brand shelf space
• Promote a brand in advertising
• Push a brand to consumers

The main trade promotion tools are:

• Price-Off: A straight discount off the list price on each case purchased
during a stated time period.
 • Allowance: Amount offered in return for the retailer’s agreeing to
feature the manufacturer’s products in some way. A display allowance
compensates them for carrying a special product display.
• Free Goods: Offers of extra cases of merchandise to intermediaries
who buy a certain quantity.

4.2 SWOT ANALYSIS

Strengths

➢ Largest producer of cement in India

➢ Best quality product
➢ Free delivery cost

Weakness
➢ Unavailability of products
➢ Untimely delivery of products
➢ Lack of advertisement

Opportunity
➢ Huge construction work coming up in Mumbai.
➢ Untapped rural market
➢ 700 million people living in villages

Threats

➢ Entry of Big Players like ACC, U/T etc.

➢ Secondary Market eating up a large Market share.
➢ Inflation
CHAPTER 5: CONCLUSION

5.1 Summery of the findings:

In spite of mercurial behavior of cement prices, the future of cement Industry is
brimming with immense potential. Taking all these into consideration there are lot
of opportunities in this sector. INNOVATION is the key to success along with
CUSTOMER SATISFACTION. Retail sector in India has huge potential and it
contributes immensely to the Indian Economy.95% constitutes the unorganized
sector and the rest 5% is the organized sector. Although the product attributes of
the organized sector is extremely good still unorganized sector is ruling the market.
Inadequate education among the end users is one of the cardinal reasons for the
failure of the organized sector. It is important for the organized sector to find out
the needs and wants of customers and tries to satisfy them profitably. There are
certain factors that impinge on actual buying and that has to be taken care of
religiously. Availability of products, visibility of products, proper distribution
channel, customer satisfaction, credit facility etc adds to the increase of sales
which reciprocates in greater market share.
Tapping the untouched rural market is very important. More than 700 billion
people are residing in rural areas and they constitute 50% of India's GDP. Ignoring
them completely would be suicidal for any organization. Number of studies has
shown that for same earning level, a rural household has more disposable income
than an urban household.
5.2 Recommendations:
The suggestions given below are to sustain as market leader in the market:
1.Ambuja cement provides the better service than other brands and can try to
maintain the same.
2.To avoid the moisture entering cement bags the inner layer of bags can be lined
with plastic coating.
3.Package innovations like hooks in one kilogram bags which will be easy to carry.
4.The periodical meetings with the retailers will help to know about expectations.
5.Awareness about all the schmes which other players are offering.
6.Best initiatives for the upcoming known projects.

7.Payments through voucher system.This voucher will act as money between

company and retailers.
• These vouchers can be used by the retailers to purchase Marico’s products
at anypoint of time during the year.

• Since we are facing a threat from the competitors regarding the cost
structure of the program we can offer the retailers additional vouchers (the
additional % increase will vary from area to area).
 • This will also help the company to increase its sales by offering them
additional vouchers.

• Payment should be done at the end of the phase.

8. NEFT (National Electronic Fund Transfer):

This can be done by taking the account number from the retailer and transfer the
entire amount to his account at the end of the phase.

CHAPTER 6: BIBLIOGRAPHY:
Reference Book:
Marketing Management –by Philip Kotler
Marketing Research - by Naresh Malhotra
Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha; “Marketing
Management”, 13th ed.(Pearson Education, 2009); Pg: 503 – 507.

Internet Source:
1. www.ambujacement.com
2. www.acc.com
3. www.managementinfomedia.com
4. http://www.cmaindia.org/portal/whatsnew/newsDigestView.aspx?NID=37
5. http://www.economywatch.com/business-and-economy/cement-
industry.html
6. http://business.mapsofindia.com/cement/
7. http://www.ibef.org/industry/cement.aspx
8. www.icra.in

9. www.ambujacementfoundation.org
10. www.ambujacementfoundation.org/pdf/ambuja2008.pdf
11. www.management-hub.com
 12. www.knowthis.com
13. www.articlebase.com

APPENDIX:
A:Questionnaire:
Q.Do u sell PPC cement?
Q.If no, you have any idea of OPC cement.
Q.If yes, which you Brand you prefer?
Q.How long you been selling PPC cement?
Q.Which brand you sell?
Q.How many kilograms of PPC cement do you sell?
Q.According to you, which brand is moving well?
Q.Which type of packaging is moving well?
Q.Do the customers have knowledge about PPC cement?
Q.What do you think about the growth of PPC cement in next 5 years?

AMBUJA CEMENT
Factors Highly Satisfied Nor Satisfied Dissatisfied Highly
Satisfied Nor Dissatisfied
Dissatisfied

Publicity

Low Defects

Packaging

Quantity