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Industry Profile

Global Cement Industry


Cement is a basic ingredient for the construction industry. Cement is made out of
limestone, shell, clay mined out of a quarry close to the plant. The raw material is
crushed, and then heated at temperature in excess of 1000 ºC in rotating kiln to become
clinker. Clinker is then mixed with gypsum and ground to a fine powder to produce final
grade of cement. The technology is a continuous process and is highly energy intensive.
Cost of cement is 29% energy, 27% raw materials, 32% labor and 12% depreciation.
The weight/to price ratio make transportation cost very high. The competitive
radius of a typical cement plant for most common types of cement extends no more than
300 kilometers. However, cement can be shipped economically by sea and inland
waterway over great distances, extending greatly the competitive radius of cement plants
with access to waterborne shipping lanes. Thus, the location of a cement plant and the
cost to transport the cement it produces through its distribution terminals bear
significantly on the plant‟s competitive position and the prices it may charge. The
minimum efficient size for a cement plant is around 1 million ton a year.
As a consequence of a relatively low minimum efficient plant and transportation
costs cement production is highly fragmented. It is estimated that there are around 1500
integrated cement production plants in the world. Although the industry has seen the
emergence of strong global players such a Lafarge or CEMEX, the share of the four
largest firms account only for 23% of the overall demand. (Globalization cement
industry, Phillip Lasserre, 2007)
Cement is distributed in bags or is delivered to construction sites through ready-
mix Lorries.
The major segments of the industries are:
• Aggregates: quarries and crushing minerals to be mixed with cement to make concrete
• Cement production
• Ready Mix: distribution of ready to use concrete

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Demand
World cement demand was 2,283 million Tons in 2005, with China accounting for 1,064
MT (47% of total).The expected demand for 2010 is estimated at 2836 MT. China will
increase its demand by 250 million tons during the period, an increase higher than the
total yearly European demand.

Demand of cement(MT) 2005 2010 Growth rate


North America 170 200 2.9%
Western Europe 208 236 2.2%
Asia/Pacific 1500 1900 5.2%
Other regions 405 500 4.7%
World cement demand 2283 2836 4.7%

Main Global Competitors


Lafarge
Lafarge is the world leader in building material. It operates in 76 countries in four majors
sectors: cement, aggregates, roofing and gypsum. It defines itself as a multi local global
firm. Over the past years it invested heavily in emerging countries. Its recent association
with the Chinese group Shui On gave the group a 21 Million Tons presence in this
country.

Holcim
Holcim is one of the world's leading suppliers of cement and aggregates (crushed stone,
sand and gravel) as well as further activities such as ready-mix concrete and asphalt
including services. The Group holds majority and minority interests in more than 70
countries on all continents, and employs some 90,000 people. Holcim has a strong
presence in India.

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Cemex
Cemex is the 3rd largest cement company in the world measured by cement production
capacity. Originated from Mexico By 2005 it had achieved an estimated production
capacity of 94 million tons per year. It was the number one producer of ready-mix with
76 Million Tons, one of the largest aggregate producer with 175 Million tons and one of
the top cement traders in the world, selling more than 17Million tons in 2005. It is present
in the Americas, Europe and Asia, although not in India nor China.

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Indian cement industry

The cement industry is one of the main beneficiaries of the infrastructure boom.With
robust demand and adequate supply, the industry has bright future. The Indian Cement
Industry with total capacity of 165 million tones is the second largest after China. Cement
industry is dominated by 20 companies who account for over 70% of the market.
Individually no company accounts for over 12% of the market. The major players like
L&T and ACC have been quiet successful in narrowing the gap between demand and
supply. Private housing sector is the major consumer of cement (53%) followed by the
government infrastructure sector. Similarly northern and southern region consume around
20%-30% cement while the central and western region are consuming only 18%-
16%.(report on cement industry in India, Shobhit Chandak,2008)

India is the 2nd largest cement producer in world after china .Right from laying concrete
bricks of economy to waving fly over‟s cement industry has shown and shows a great
future. The overall outlook for the industry shows significant growth on the back of
robust demand from housing construction, Phase-II of NHDP (National Highway
Development Project) and other infrastructure development projects. Domestic demand
for cement has been increasing at a fast pace in India. Cement consumption in India is
forecasted to grow by over 22% by 2009-10 from 2007- 08.Among the states,
Maharashtra has the highest share in consumption at 12.18%, followed by Uttar Pradesh,
In production terms, Andhra Pradesh is leading with 14.72% of total production followed
by Rajasthan. Cement production grew at the rate of 9.1 per cent during 2006-07 over the
previous fiscal's total production of 147.8 mt (million tons). Due to rising demand of
cement the sales volume of cement companies are also increasing & companies reporting
higher production, higher sales and higher profits. The net profit growth rate of cement
firms was 85%.

Cement industry has contributed around 8% to the economic development of India.


Outsiders (foreign players) eyeing India as a major market to invest in the form of either

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merger or FDI (Foreign Direct Investment). Cement industry has a long way to go as
Indian economy is poised to grow because of being on verge of development. The
company continues to emphasize on reduction of costs through enhanced productivity,
reduction in energy costs and logistics expenses. The cement sector is expected to witness
growth in line with the economic growth because of the strong co-relation with GDP.
Future drivers of cement demand growth in India would be the road and housing projects.
As per the Working Group report on Cement Industry for the formulation of the 11th
Plan, the cement demand is likely to grow at 11.5 percent per annum during the 11th Plan
and cement production and capacity by the end of the 11th Plan are estimated to be 269
million tones and 298 million tones, respectively, with capacity utilization of 90 per cent.

Despite the growth of Indian cement industry India lags behind the per capital
production. Supply for cement is expected to remain tight which, in turn, will push up
prices of cement by more than 50%. The most important factor for better prices is
consolidation of the industry. It has just begun and we will see more consolidation in the
coming years. Other budget measures such as cut in import duty from 12.5 per cent to nil
etc. are all intended to cut costs and boost availability of cement. Sadly the adverse
effects of global slowdown have not speared this industry too. Demand is sluggish, the
government is keeping an eagle eye on prizes, domestic coal and pet coke, prizes have
increased sharply and utilizations rates are down. The numbers coming out are a
reflection of grim times. ACC the country‟s largest cement company that‟s controlled by
Swiss giant HOLCIM, registered 2% fall in august sales. It is the biggest fall since Feb
2007. Production fell by 5%.To stand against the problematic situation; government as
well as cement industry has taken some steps. Companies are focusing on cost of
transportation. One of the strategy is to decrease dependence on road & opt for sea
logistics as that can cut transportation cost by 30- 50 %. Some plants are adopting
futuristic plan such as setting up captive power plant, moving closer to the customers by
creating clicker, crushing, and capacity in key markets, to be more customer centric to
generate better revenue. India should push for stricter regulations of market place as to
control the prices of big companies and prevent them from forming cartels and

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exchanging information. To fight with the high inflation, government wants to import
more cement from Pakistan .However cement prizes are not very much high as other
items but still they are increasing. And the reason of high prize is surging cost of raw
material and transportation cost. Apart from this government also discussed with cement
industry not to have increase in prizes and keep consumer interest in mind.

Now the question arise in front of the government is whether the demand by the
government is possible to increase through expenditure on infrastructure or not according
to the current state of economy when so many crises are going on or how the government
allocation of US$ 3.23 billion for the National Highway Development, Project will keep
the demand for cement alive? And to what extent the prizes of cement should be increase
so that consumer can‟t affect.

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. Some of the major clusters of cement industry in India are:
Satna (Madhya Pradesh), Chandrapur (Maharashtra), Gulbarga (Karnataka), Yerranguntla
(Andhra Pradesh),Nalgonda (Andhra Pradesh), Bilaspur (Chattisgarh), and Chandoria
(Rajasthan).

CURRENT SCENARIO
The Indian cement industry is the second largest producer of quality cement, which meets
global standards. The cement industry comprises 130 large cement plants and more than
300 mini cement plants. The industry's capacity at the end of the year reached 188.97

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million tons which was 166.73 million tons at the end of the year 2006-07. Cement
production during April to March 2007-08 was 168.31 million tons as compared to
155.66 million tons during the same period for the year 2006-07. Dispatches were 167.67
million tons during April to March 2007- 08 whereas 155.26 during the same period.
During April-March 2007-08, cement export was 3.65 million tons as compared to 5.89
during the same period. Cement industry in India is currently going through a
consolidation phase. Some examples of consolidation in the Indian cement industry are:
Gujarat Ambuja taking a stake of 14 per cent in ACC, and taking over DLF Cements and
Modi Cement; ACC taking over IDCOL; India Cement taking over Raasi Cement and Sri
Vishnu Cement; and Grasim's acquisition of the cement business of L&T, Indian Rayon's
cement division, and Sri Digvijay Cements. Foreign cement companies are also picking
up stakes in large Indian cement companies. Swiss cement major Holcim has picked up
14.8 per cent of the promoters' stake in Gujarat Ambuja Cements (GACL). Holcim's
acquisition has led to the emergence of two major groups in the Indian cement industry,
the Holcim-ACC-Gujarat Ambuja Cements combine and the Aditya Birla group through
Grasim Industries and Ultratech Cement. Lafarge, the French cement major has acquired
the cement plants of Raymond and Tisco. Italy based Italcementi has acquired a stake in
the K.K. Birla promoted Zuari Industries' cement plant in Andhra Pradesh, and German
cement company Heidelberg Cement has entered into an equal joint-venture agreement
with S P Lohia Group controlled Indo-Rama Cement.

PROCESS TECHNOLOGY
While adding fresh capacities, the cement manufacturers are very conscious of the
technology used. In cement production, raw materials preparation involves primary and
secondary crushing of the quarried material, drying the material (for use in the dry
process) or undertaking a further raw grinding through either wet or dry processes, and
blending the materials. Clinker production is the most energy intensive step, accounting
for about 80% of the energy used in cement Production. Produced by burning a mixture
of materials, mainly limestone, silicon oxides, aluminum, and iron oxides, clinker is

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made by one of two production processes: wet or dry; these terms refer to the grinding
processes although other configurations and mixed forms (semi-wet, semi-dry) exist for
both types. In the dry process, the raw materials are ground, mixed, and fed into the kiln
in their dry state. In the wet process, the crushed and proportioned materials are ground
with water, mixed, and fed into the kiln in the form of slurry.

Different types of cement that are produced in India are:


• Ordinary Portland cement (OPC):
OPC, popularly known as grey cement, has 95 per cent clinker and 5 per cent gypsum
and other materials. It accounts for 70 per cent of the total consumption.

• Portland Pozzolana Cement (PPC):


PPC has 80 per cent clinker, 15 per cent pozzolana and 5 per cent gypsum and accounts
for 18 per cent of the total cement consumption. It is manufactured because it uses fly
ash/burnt clay/coal waste as the main ingredient.

• White Cement:
White cement is basically OPC - clinker using fuel oil (instead of coal) with iron oxide
content below 0.4 per cent to ensure whiteness. A special cooling technique is used in its
production. It is used to enhance aesthetic value in tiles and flooring. White cement is
much more expensive than grey cement.

• Portland Blast Furnace Slag Cement (PBFSC):


PBFSC consists of 45 per cent clinker, 50 per cent blast furnace slag and 5 per cent
gypsum and accounts for 10 per cent of the total cement consumed. It has a heat of
hydration even lower than PPC and is generally used in the construction of dams and
similar massive constructions.

• Specialized Cement:

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Oil Well Cement is made from clinker with special additives to prevent any porosity.

• Rapid Hardening Portland cement:


Rapid Hardening Portland Cement is similar to OPC, except that it is ground much finer,
so that on casting, the compressible strength increases rapidly.

• Water Proof Cement:


Water Proof Cement is similar to OPC, with a small portion of calcium stearate or non-
saponifibale oil to impart waterproofing properties.

PROCEDURE
The main raw materials used in the cement manufacturing process are limestone, sand,
shale, clay, and iron ore. The main material, limestone, is usually mined on site while the
other minor materials may be mined either on site or in nearby quarries. Another source
of raw materials is industrial by-products. The use of byproduct materials to replace
natural raw materials is a key element in achieving sustainable development.

Raw Material Preparation


Mining of limestone requires the use of drilling and blasting techniques. The blasting
techniques use the latest technology to insure vibration, dust, and noise emissions are
kept at a minimum. Blasting produces materials in a wide range of sizes from
approximately 1.5 meters in diameter to small particles less than a few millimeters in
diameter. Material is loaded at the blasting face into trucks for transportation to the
crushing plant. Through a series of crushers and screens, the limestone is reduced to a
size less than 100 mm and stored until required. Depending on size, the minor materials
(sand, shale, clay, and iron ore) may or may not be crushed before being stored in
separate areas until required.

Raw Grinding

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In the wet process, each raw material is proportioned to meet a desired chemical
composition and fed to a rotating ball mill with water. The raw materials are ground to a
size where the majority of the materials are less than 75 microns. Materials exiting the
mill are called "slurry" and have flow ability characteristics. This slurry is pumped to
blending tanks and homogenized to insure the chemical composition of the slurry is
correct. Following the homogenization process, the slurry is stored in tanks until
required. In the dry process, each raw material is proportioned to meet a desired chemical
composition and fed to either a rotating ball mill or vertical roller mill. The raw materials
are dried with waste process gases and ground to a size where the majority of the
materials are less than 75 microns. The dry materials exiting either type of mill are called
"kiln feed". The kiln feed is pneumatically blended to insure the chemical composition of
the kiln feed is well homogenized and then stored in silos until required.

Pyroprocessing
Whether the process is wet or dry, the same chemical reactions take place. Basic
chemical reactions are: evaporating all moisture, calcining the limestone to produce free
calcium oxide, and reacting the calcium oxide with the minor materials (sand, shale, clay,
and iron). This results in a final black, nodular product known as "clinker" which has the
desired hydraulic properties.
In the wet process, the slurry is fed to a rotary kiln, which can be from 3.0 m to 5.0 m in
diameter and from 120.0 m to 165.0 m in length. The rotary kiln is made of steel and
lined with special refractory materials to protect it from the high process temperatures.
Process temperatures can reach as high as 1450oC during the clinker making process.
In the dry process, kiln feed is fed to a preheater tower, which can be as high as 150.0
meters. Material from the preheater tower is discharged to a rotary kiln with can have the
same diameter as a wet process kiln but the length is much shorter at approximately 45.0
m. The preheater tower and rotary kiln are made of steel and lined with special refractory
materials to protect it from the high process temperatures.
Regardless of the process, the rotary kiln is fired with an intense flame, produced by
burning coal, coke, oil, gas or waste fuels. Preheater towers can be equipped with firing
as well. The rotary kiln discharges the red-hot clinker under the intense flame into a

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clinker cooler. The clinker cooler recovers heat from the clinker and returns the heat to
the pyroprocessing system thus reducing fuel consumption and improving energy
efficiency. Clinker leaving the clinker cooler is at a temperature conducive to being
handled on standard conveying equipment.

Finish Grinding and Distribution


The black, nodular clinker is stored on site in silos or clinker domes until needed for
cement production. Clinker, gypsum, and other process additions are ground together in
ball mills to form the final cement products. Fineness of the final products, amount of
gypsum added, and the amount of process additions added are all varied to develop a
desired performance in each of the final cement products. Each cement product is stored
in an individual bulk silo until needed by the customer. Bulk cement can be distributed in
bulk by truck, rail, or water depending on the customer's needs. Cement can also be
packaged with or without color addition and distributed by truck or rail.

DEMAND & SUPPLY


The demand drivers for the cement sector continue to be housing, infrastructure and
commercial construction, etc. We expect the proportion of infrastructure in total demand
to improve further in future, as the thrust on infrastructure development is on the rise.
During April-November 2007, cement demand grew by 10 per cent year on year (y-o-y)
propelled by the growth witnessed in end user segments such as housing, infrastructure
etc. CRISIL Research expects demand to remain strong and grow by over 12 per cent in
the next 2 years. Cement demand is expected to outstrip supply for r
the next year and a half as no major capacities are coming on stream, thus providing
enough flexibility to cement manufacturers to further hike the prices.

Today, cement from Andhra is going all over India, including Assam, Meghalaya,
Jharkhand, Orissa, West Bengal, Chattisgarh, Gujarat and Maharashtra. More cement is
likely to flow into Tamil Nadu from the state in view of cut in sales tax. Any further
increase in demand in the South India will benefit the cement industry here. Cement

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movement from Gujarat to Mumbai is also coming down due to exports while cement
movement from Orissa into Andhra has stopped and, in fact, cement is flowing into
Orissa as well. Earlier in 2006-07, the housing sector alone consumed 65 per cent of the
total domestic consumption. With the launch of several infrastructure projects, the
housing consumption may come down to 55 per cent as the infrastructure and other
sectors are expected to move up to 45 per cent from the present 35 per cent. Still, the
main sector of consumption continues to be housing, including commercial space,
occupying more than 60 per cent. The current demand in the state for 2005-06 is expected
to cross 15 million tons (11.5 million tons). We expect the demand here to go past the
17.5-million mark in 2006-07 in view of irrigation and infrastructure projects being taken
up in the state. Weaker sections‟ housing, construction of public toilets, schools in rural
areas apart from several private and public infrastructure projects will also give
tremendous boost to the cement consumption in the state. Most importantly, irrigation
projects, worth nearly Rs 1 lakh crore, will trigger unprecedented demand for the next 5-7
years.

DEMAND DRIVERS

Indian cement demand skewed towards housing

The demand from the housing sector is ~53% of the total Indian cement demand. There
are fears of a slowdown in the demand from the housing sector due to a drop in real estate
prices in the country. The worry is that builders may postpone construction of new
buildings if the property prices were to correct.

Infrastructure to give demand a big boost


Our analysis shows that Infrastructure should be the biggest growth driver for Cement
demand in the country. If we were to look only at order books of the top eight
construction and manufacturing equipment companies in India, we find that their
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combined order book has virtually doubled over the last two years from INR1,000bn
(USD25bn) to INR1,950bn (USD48.75bn) for completion over the next 24-30 months.

COST
Over the past five years, cost of cement production has grown at a CAGR of 8.4%. Also
the producers have been able to pass on the hike in cost to consumers on the back of
increased demand. Average realizations have increased from Rs. 1,880 per ton in FY 03
to Rs. 3,133 per tons in FY 07, at a CAGR of 13.6%, which has been reflected in higher
profit margins of the industry. To reduce the cost of production, the industry has focused
on captive power generation. Proportion of cement production through captive power
route has increased over the years. Also, cement movement by rail has increased over the
years. Freight and energy costs are also increasing; however, in the current market
scenario, manufacturers have the flexibility to pass on the increase in costs to end
consumers. Let us have a look at the cost factors affecting the cement industry.

CAPACITY UTILIZATION
Since the industry operates on fixed cost, higher the capacity sold, the wider the cost
distributed on the same base. But one should also keep in mind, that there have been
instances wherein despite a healthy capacity utilization, margins have fallen due to lower
realizations.
Power: The cement industry is energy intensive in nature and thus power costs form the
most critical cost component in cement manufacturing (about 30% to total expenses).
Most of the companies resort to captive power plants in order to reduce power costs, as
this source is cheaper and results in uninterrupted supply of power. Therefore, higher the
captive power consumption of the company, the better it is for the company.
Freight: Since cement is a bulk commodity, transporting is a costly affair (over 15%).
Companies, which have plants located closer to the markets as well as to the source of
raw materials have an advantage over their peers, as this leads to lower freight costs.
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Also, plants located in coastal belts find it much cheaper to transport cement by the sea
route in order to cater to the coastal markets such as Mumbai and the states of Gujarat
and Tamil Nadu.
On account of sufficient reserves of raw materials such as limestone and gypsum, the raw
material costs are generally lower than freight and power costs in the cement industry.
Excise duties imposed by the government and labor wages are among the other important
cost components involved in the manufacturing of cement.

Operating margins: The company should have a consistent record of outperforming its
peers on the operational performance front i.e. it should have higher operating margins
than its competitors in the industry. Factors such as captive power plants, effective
capacity utilization results in higher operating margins and therefore these factors should
be looked into. Since cement is a regional play on account of its high freight costs, the
company should not have all its plants concentrated in one region. It should have a
geographical spread so that adverse market conditions in one region can be mitigated by
high growth in the other region.

GOVERNMENT POLICIES
Government policies have affected the growth of cement plants in India in various stages.
The control on cement for a long time and then partial decontrol and then total decontrol
has contributed to the gradual opening up of the market for cement producers. The stages
of growth of the cement industry can be best described in the following stages:

Price and Distribution Controls (1940-1981)

During the Second World War, cement was declared as an essential commodity under the
Defense of India Rules and was brought under price and distribution controls which
resulted in sluggish growth. The installed capacity reached only 27.9 MT by the year
1980-81.

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Partial Decontrol (1982-1988)

In February 1982, partial decontrol was announced. Under this scheme, levy cement
quota was fixed for the units and the balance could be sold in the open market. This
resulted in extensive modernization and expansion drive, which can be seen from the
increase in the installed capacity to 59MT in 1988-89 in comparison with the figure of a
mere 27.9MT in 1980-81, an increase of almost 111%.

Total Decontrol (1989)

In the year 1989, total decontrol of the cement industry was announced. By Decontrolling
the cement industry, the government relaxed the forces of demand and supply. In the next
two years, the industry enjoyed a boom in sales and profits. By 1992, the pace of overall
economic liberalization had peaked; ironically, however, the economy slipped into
recession taking the cement industry down with it. For 1992-93, the industry remained
stagnant with no addition to existing capacity.

Government Controls

The prices that primarily control the price of cement are coal, power tariffs, railway,
freight, royalty and cess on limestone. Interestingly, all of these prices are controlled by
government.

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REQUIREMENTS

Coal
The consumption of coal in a typically dry process system ranges from 20-25% of clinker
production. This means for per ton clinker produced 0.20-0.25 ton of coal is consumed.
This contributes 35-40% of the production cost. The cement industry consumes about
10mn tons of coal annually. Since coalfields like BCCL supply a poor quality of coal,
NCL and CCL the industry has to blend high-grade coal with it.
The Indian coal has a low calorific value (3,500-4,000 kcal/kg) with ash content as high
as 25-30% compared to imported coal of high calorific value (7,000-8,000 kcal/kg) with
low ash content 6-7%. Lignite is also used as a fuel by blending it with coal. However
this process is not very common.

Electricity
Cement industry consumes about 5.5bn units of electricity annually while one ton of
cement approximately requires 120-130 units of electricity. Power tariffs vary according
to the location of the plant and on the production process. The state governments supply
this input and hence plants in different states shall have different power tariffs. Another
major hindrance to the industry is severe power cuts. Most of the cement producing states
like AP, MP experience power cuts to the tune of 25-30% every year causing substantial
production loss.

Infrastructure
To reduce uncertainty relating to power, most of the leading companies like ACC, Indian
Rayon, and Grasim rely on captive power plants. A few companies are also considering
power-generating windmills.

Limestone

This constitutes the largest bulk in terms of input to cement. For producing one ton of
cement, approximately 1.6 ton of limestone is required. Therefore, the cement plant
location is determined by the location of limestone mines. The major cash outflow takes

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place in way of royalty payment to the central government and cess on royalties levied by
the state government. The total limestone deposit in the country is estimated to be 90
billion tons. Andra Pradesh has the largest share -- 34%, Karnataka 13%, Gujarat 13%,
M.P 8%, and Rajasthan 6.5%. The plants near the limestone deposit pay less
transportation cost than others.

Transportation
Cement is mostly packed in paper bags now. It is then transported either by rail or road.
Road transportation beyond 200 kilometers is not economical therefore about 55%
cement is being moved by the railways. There is also the problem of inadequate
availability of wagons especially on western railways and southeastern railways. Under
this scenario, manufacturers are looking for sea routes, this being not only cheap but also
reducing the losses in transit. Today, 70% of the cement movement worldwide is by sea
compared to 1% in India. However, the scenario is changing with most of the big players
like L&T, ACC and Grasim having set up their bulk terminals.

Infrastructure for Future


The consumption of cement is determined by factors influencing the level of housing and
industrial construction, irrigation projects, and roads and laying of water supply and
drainage pipes etc. The level and growth of GDP and its sectoral composition, capital
formation, development expenditure, growth in population, level of urbanization, etc, in
turn, determine these factors. But the domestic demand for cement is mainly from the
housing activities and infrastructure development. The government paved the way for the
entry of the private sector in road projects. It has amended the National Highway Act to
allow private toll collection and identified projects, bridges, expressways and big passes
for private construction. The budget gave substantial incentives to private sector
construction companies. Ongoing liberalization will lead to an increase in industrial
activities and infrastructure development. So it is hoped that Indian cement industry shall
boom again in near future.

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Incentives in States
Most state governments, in order to attract investments in their respective states, offer
fiscal incentives in the form of sales tax exemptions/deferrals. In some states, this applies
only to intrastate sales, like Madhya Pradesh and Rajasthan. States like Haryana offer a
freeze on power tariff for 5 years, while Gujarat offers exemption from electric duty.

Installed Capacity
India is the world‟s second largest cement producing country after China. The industry is
characterized by a high degree of fragmentation that has created intense competitive
pressure on price realizations. Spread across the length and breadth of the country, there
are 120 large plants belonging to 56 companies with an installed capacity of around
135mn tons as on March 2002.

OPPORTUNITIES, THREATS, RISKS AND CONCERNS


The cement industry is going through its boom period with full capacity utilization.
Powered by the GDP growth of 8-9%, the annual demand for cement in the country
continues to grow at 8- 10%. As per NCAER study, under high growth scenario, the
demand for cement (including exports) is expected to increase to 244.82 million tonnes
by 2010-11. As per the study, the demand is expected to be much higher at 311.37
million tonnes, if the optimistic projections of the road and the housing sectors are met.
The industry has responded to this with substantial new capacity announcements. The
materialization of these capacities, however, is likely to be delayed due to a number of
factors including timely delivery of equipment and construction of the plant due to the
heavy order book position of the suppliers. It is expected that demand growth will
outstrip supply till the materialization of such new capacities. However, the current high
level of international crude prices and its impact on the domestic prices of petroleum

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products is likely to make a dent in the profitability but its impact will have to be seen
depending upon the ability of the economy to pass on such cost increase to the consumer.
While the freight cost could be optimized on the imported coal through usage of
company‟s own ships for part of the quantity, the international prices of imported coal
and its volatility together with the strengthening of the dollar against rupee could derail
this. This could impact the delivery prices of imported coal and also the cost of
production. The Government has taken steps to increase the availability of indigenous
coal for its expanded capacity across various plants which can mitigate the impact of such
high cost of imported coal for the plants located near the coal fields in India.
The Government‟s continuing efforts to rein in cement prices by freeing imports and
banning exports could artificially disable the normal market price mechanisms for
determining the price.
The rise in the price of cement is because of the gap of demand & supply in the market.
The demand for cement is much higher than its actual supply. But with the production
maximization, which can be encountered in next few years, this gap may narrow down,
that may ensure the market to be in equilibrium.
Decreasing per capita consumption doesn‟t affect the total consumption for the cement. It
means the infrastructure; contacted housing is using the bulk of the production. In spite of
High price of the product, the hick of demand because of the increasing rate of
infrastructural development.
Domestic price of cement is rising as well as the imported cement price is lowering. So,
altogether the supply of the cement, which is affordable, will increase. This may in
decrease the gap between supply and demand. Major Demand was from the housing
sector, which may shift to infrastructure as lots of infrastructural development processes
has already being taken up & due to the increased price, housing segment started showing
a slowdown.

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Main Companies in India
Associated Cement Companies Ltd (ACCL)
Associated Cement Companies Ltd manufactures ordinary Portland cement, composite
cement and special cement and has begun offering its marketing expertise and
distribution facilities to other producers in cement and related areas. It has twelve
manufacturing plants located throughout the country with exports to SAARC nations.
The company plans capital expenditure through expansion of existing units and/or
through acquisitions. Non-core assets are to be divested to release locked up capital. It is
also expected to actively pursue overseas project engineering and consultancy services.

Birla Corporation Ltd.


Birla Corp's product portfolio includes acetylene gas, auto trim parts, casting, cement,
jute goods, yarn, calcium carbide etc. The cement division has an installed capacity of
4.78 million metric tonnes and produced 4.77 million metric tonnes of cement in 2003-
04. The company has two plants in Madhya Pradesh and Rajasthan and one each in West
Bengal and Uttar Pradesh and holds a market share of 4.1 per cent. It manufactures
Ordinary Portland cement (OPC), Portland pozzolana cement, fly ashbased PPC, Low-
alkali Portland cement, Portland slag cement, low heat cement and sulphate resistant
cement. Large quantities of its cement are exported to Nepal and Bangladesh. Going
forward, the company is setting up its captive power plant to remain cost competitive.

Century Textiles and Industries Ltd (CTIL)


The product portfolio of CTIL includes textiles, rayon, cement, pulp & paper, shipping,
property & land development, builders and floriculture. Cement is the largest division of
CTIL and contributes to over 40 per cent of the company's revenues. The company has an
installed capacity of 4.7 million tonnes with a total cement production of 5.43 million
tonnes in 2003-04. CTIL has four plants that manufacture cement, one in Chhattisgarh,

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two in Madhya Pradesh and one in Maharashtra. Going forward, the company has
scripted a three-pronged strategy closing down its shipping business, continuing with its
chemicals and adhesive division, and focusing on cement, rayon and paper as its long
term business plan.

Grasim-UltraTech Cemco
Grasim's product profile includes viscose staple fibre (VSF), grey cement, white cement,
sponge iron, chemicals and textiles. With the acquisition of UltraTech, L&T's cement
division in early 2004, Grasim has now become the world's seventh largest cement
producer with a combined capacity of 31 million tonnes. Grasim (with UltraTech) held a
market share of around 21 per cent in 2003-04.It has plants in Madhya Pradesh,
Chhattisgarh, Punjab, Rajasthan, Tamil Nadu and Gujarat among others. The company
plans to invest over US$ 9 million in the next two years to augment capacity of its
cement and fibre business. It‟s also plans to focus on its international ventures, ramping
up the capacity of Alexandra Carbon Black in Egypt to 1,70,000 tonne per annum (from
1, 20,000 tpa) and raising the capacity of the carbon black plant in China from 12,000 tpa
to 60,000 tpa.

Gujarat Ambuja Cements Ltd (GACL)


Gujarat Ambuja Cements Ltd was set up in 1986 with the commencement of commercial
production at its 2 million tonne plant in Chandrapur, Maharashtra. The group has clinker
manufacturing facilities at Himachal Pradesh, Gujarat, Maharashtra, Chhattisgarh, Punjab
and Rajasthan. The company has a market share of around 10 per cent, with a strong
foothold in the northern and western markets. Its total sales aggregated US$ 526 million
with a capacity of 12.6 million tonnes in 2003-04. Gujarat Ambuja is India's largest
cement exporter and one of the most cost efficient firms. GACL has a 14.45 per cent
stake in ACC, making it the second largest cement group in the country, after Grasim-
UltraTech Cemco. The company has free cash flows that it is likely to use to grow
inorganically. The company is scouting for a capacity of around two million tonne in the

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northern and western markets. It has also earmarked around US$ 195-220 million for
acquisitions.

India Cements
India Cements is the largest cement producer in southern India with a total capacity of
8.81 million tonnes and plants in Andhra Pradesh and Tamil Nadu. The company has a
market share of 5.4 per cent with a total cement production of 6.36 million tonnes in
2003-04.Its product portfolio includes ordinary Portland cement and blended cement. The
company has limited its business activity to cement, though it has a marginal exposure to
the shipping business. The company plans to reduce its manpower significantly and exit
non-core businesses to turnaround its fortune. It also expects the export market to open
up, with the Gulf emerging as a major importer.

Jaiprakash Associates Limited


Jaiprakash Industries, now known as Jaiprakash Associates Limited (JAL) is part of the
Jaypee group with businesses in civil engineering, hospitality, cement, hydropower,
design consultancy and IT. It has an annual capacity of 4.6 million tonnes with plants
located in Rewa & Bela (Madhya Pradesh) and Sadva Khurd (Uttar Pradesh). The
company has a market share of 3.8 per cent with the cement division contributing US$
172 million to revenue in 2003-04. The company is upgrading its capacity to 6.5 million
tonnes through the modernizing of the existing units and the commissioning of a new
grinding unit at Tanda (Uttar Pradesh) with an investment of US$ 163 million. Jaiprakash
Associates has decided to concentrate on its core business of construction and
engineering and leave its cement plant to its subsidiary Jaypee Rewa Cement Ltd. The
company manufactures a wide range of world class cement of OPC grades 33, 43, 53,
IRST-40 and special blends of pozzolana cement.

JK Synthetics

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JK Synthetics, a Singhania Group company, started manufacturing nylon at Kota in 1962.
Subsequently, it diversified into PSY/PFY, nylon tyre-cord, cement (in 1975), acrylic and
white cement (in 1984). The company has a market share of 2.7 per cent. JK Synthetics
Limited is restructuring its business divisions into two separate entities- JK Cements and
JK Synthetics. After the restructuring, it will be left with a cement plant at Nimbahera in
Rajasthan, with a capacity of 3.26 million metric tonnes and manufacturing white
cement.

Madras Cements
Madras Cements Ltd is one of the oldest cement companies in the southern region and is
a part of the Ramco group. The company is engaged in cement, clinker, dolomite, dry
mortar mix, limestone; ready mix cements (RMC) and units generated from windmills.
The company has three plants in Tamil Nadu, one in Andhra Pradesh and a mini cement
plant in Karnataka. It has a total capacity of 5.47 million tonnes annually and holds a
market share of 3.1 per cent. Madras Cements plans to expand by putting up RMC plants.
As Karnataka is a promising market, the company is further expanding its capacity from
the present 1.5 million tonnes to 3.4 million tonnes through an investment of US$ 9
million.

Holcim
Holcim, earlier known as Holderbank, has a cement production capacity of 141.9 million
tonnes. It is a key player in aggregates, concrete and construction related services. It has a
strong market presence in over 70 countries and is a market leader in South America and
in a number of European and overseas markets. Holcim entered India by means of a long-
term strategic alliance with Gujarat Ambuja Cements Ltd (GACL). The alliance aims to
strengthen their clinker and cement trading activities in South Asia, the Middle East and
the region adjoining the Indian Ocean. Holcim also intends to use India as an additional
base for its IT operations, R&D projects as well as a procurement sourcing hub to
generate additional synergies and value for the group.

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Italcementi Group
The Italecementi group is one of the largest producers and distributors of cement with 60
cement plants, 547 concrete batching units and 155 quarries spread across 19 countries in
Europe, Asia, Africa and North America. Italcementi is present in the Indian markets
through a 50:50 joint venture company with Zuari Cements. All initiatives in southern
India are routed through the joint venture company, while Italcementi is free to buy deals
in its individual capacity in northern India. The joint venture company has a capacity of
3.4 million tonnes and a market share of 2.1 per cent.

Lafarge India
Lafarge India Pvt Ltd, a subsidiary of the Lafarge Group, has a total cement capacity of 5
million tonnes and a clinker capacity of 3 million tonnes in the country. Lafarge
commenced operations in 1999 and currently has a market share of 3.4 per cent. It
exports clinker and cement to Bangladesh and Nepal. It produces Portland slag cement,
ordinary Portland cement and Portland pozzolana cement. The Indian cement plants are
located in Chhattisgarh and Rajasthan. Lafarge Cement has become the largest cement
selling firm in the Indian markets of West Bengal, Bihar, Jharkhand and Chhattisgarh.

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Company Profile

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The Jaypee Group is a well diversified infrastructural industrial conglomerate in India.
Over the decades it has maintained its salience with leadership in its chosen line of
businesses - Engineering and Construction, Cement, Private Hydropower, Hospitality,
Real Estate Development, Expressways and Highways. The group has been discharging
its responsibilities to the satisfaction of all its shareholders and fellow Indians, summed
by its guiding philosophy of "Growth with a Human Face".

With a single minded focus in mind, to achieve pioneering myriads of feat in civil
engineering Shri. Jaiprakash Gaur, the founding father of Jaiprakash Associates Limited
after acquiring a Diploma in Civil Engineering in 1950 from the University of Roorkee,
had a stint with Govt. of U.P. and with steadfast determination to contribute in nation
building, branched off on his own, to start as a civil contractor in 1958.

Historical Milestones

Year 1957 Completed first work as contractor in Kota (India).

Year 1979 Jaiprakash Associates Private Ltd. ( JAPL)

Year 1983 Establishment of Jaypee Rewa Cement Plant (JRCL) with an initial
capacity of 1 million tones.

Year 1980 Hotels Siddharth and Vasant Continental set up.

Year 1986 Formation of Jaiprakash Industries Limited (JIL) by amalgamating


JAPL into JRCL.

Year 1992 Formation of Jaiprakash Hydro Power Ltd.(JHPL) and Jaiprakash


Power Venture Ltd. (JPVL)

Year 1996 Establishment of Jaypee Bela Cement Plant (JBCP) with an initial
capacity of 1.9 million tones.

Year 2000 Formation of Jaypee Cement Ltd. (JCL) by merging JRCL and JBCP.

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Year 2003 Formation of Jaiprakash Associates Ltd. (JAL) formed by merging JIL
with JCL.

Year 2005 Shares of JHPL listed on BSE/NSE. First Hydropower company to be


publicly held and listed in the country.

Year 2006 Merger of Jaypee Greens with Jaiprakash Associates Ltd.


( JAL)

Business of Jaypee Group

Civil Engineering

Initially, the Jaypee Group started as civil engineering contractors. Jaiprakash Associates
Ltd., the flagship company of the Group, is a leader in Construction of river valley and
hydropower projects on turnkey basis for more than 4 decades. The company is currently
executing various projects in hydropower / irrigation / other infrastructure fields and has
had the distinction of executing simultaneously 13 hydropower projects spread over 6
states and the neighboring country Bhutan for generating 10,290 MW of power. Jaypee
Group undertakes projects involving:-

-Large quantities of rock excavation (both surface and underground)


-Controlled earth/rock fill
-Concrete manufacture and placement (including chilling)
-Fabrication and erection of penstock liners
-Hydro-mechanical equipment procurement and erection
-Steel Structures
-Expressway Construction
-Real Estate Development

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Cement
Jaypee group is the 3rd largest cement producer in the country. The groups cement
facilities are located in the Satna Cluster (U.P), which has one of the highest cement
production growth rates in India.

The group produces special blend of Portland Pozzolana Cement under the brand name
„Jaypee Cement‟ (PPC). Its Cement Division currently operates modern, computerized
process control cement plants with an aggregate capacity of 13.5 MTPA. The company is
in the midst of capacity expansion of its cement business in Northern, Southern, Central,
Eastern and Western parts of the country and is slated to be a 24.30 MTPA cement
producer by the year 2010 and 26.80 MTPA by 2011 with Captive Thermal Power Plants
totaling 327MW.

Keeping pace with the advancements in the IT industry, all the 140 cement dumps are
networked using TDM/TDMA VSATs along with a dedicated hub to provide 24/7
connectivity between the plants and all the 120 points of cement distribution in order to
ensure “track – the – truck” initiative and provide seamless integration. This initiative is
the first of its kind in the cement industry in India.

In the near future, the group plans to expand its cement capacities via acquisition and
Greenfield additions to maximize economies of scale and build on vision to focus on
large size plants from inception.

The Group is committed towards the safety and health of employees and the public. Our
motto is ' Work For Safe, Healthy, Clean & Green Environment

Cement Division of Jaiprakash Associates Limited with its Plants at Jaypee Rewa Plant
(JRP), Jaypee Bela Plant (JBP), JAAGO & JCBU has been awarded the Integrated
Management System comprising of ISO-9001:2000, ISO-14001:2004 & OHSAS-
18001:1999 by the world renowned Bureau Veritas Certification. ISO-9001:2000 covers

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Quality Management System. ISO-14001:2004 covers all Environmental Issues including
conservation of Natural Resources and Reduction of Emissions and Wastes. OHSAS-
18001:1999 covers Operational Safety and reduces Risk to People, Plant & Machinery.

Private Hydropower

Hydropower - a renewable source of energy on which the future of our country rests. It
conserves our nations fossil fuel reserves, is in abundant supply and simultaneously is
non-polluting in nature. Keeping all this in the backdrop of mind, Government of India
opened up the doors in 1991 to private companies for the setting up of private
hydropower projects. The GOI has an ambitious plan of providing power for all by the
year 2012. For this the government identified an optimal hydro thermal mix of 40:60, to
meet the peak shortage demand.

Seeing the vast potential present in the hydro power generation, the house of Jaypees
ventured into private power generation on Build Own Operate (BOO) basis. JAL has so
far the distinction of participating in 54 % of new hydropower projects under India‟s
Tenth Five Year Plan.

Hospitality
The group owns and operates four Five Star Deluxe hotels through Jaypee Hotels
Limited, a subsidiary company and is a significant player in north of India. All the hotels
enjoy the patronage of most illustrious of the families, businessmen leaders and
dignitaries from around the world. This leading chain of deluxe hotels in India offers
luxurious accommodation, exquisite dining facilities, interesting leisure options and a
pleasant environment to provide a comfortable stay for our esteemed guests.

The first two five star hotels in the capital were set up in the back drop of the Asian
Games in 1980 - Hotel Siddharth and Hotel Vasant Continental. An ode to the
cosmopolitan culture of Delhi – these two five star hotels unfold the finest lifestyle
experiences. An exquisite blend of business and pleasure makes them a perfect place to
confer, relax or pamper your senses.

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Pioneering the concept of deluxe hotels – Hotel Jaypee Palace Agra, is a hotel and
convention centre. The hotel is a fine blend of the Mughal architectural brilliance and it
combines classic qualities, simultaneously blending luxury and exclusivity with modern
style, flair and sophistication.

Jaypee Residency Manor, Queen of hills, Mussoorie is a tribute to the majesty and
splendor of the Mussoorie hills. Built on an individual hilltop, the Hotel offers an
amazing 180 degrees of the most awe inspiring view of the hills.

Whether staying for business or for pleasure, whether running a conference or a meeting,
arranging receptions or any other special occasion, the Jaypee Hotels has it all to make
that affair a memorable one. Each visit is an experience of a lifetime.

Integrated Township

Jaypee Group embarks one to take a journey to a place where nature and its surroundings
transcend human soul to reach and ask for tranquility in its every form. The Jaypee group
has vested interest in the development of real estate but with a different kind of fervor.
The premier way of expression is its real estate development property in Greater Noida.

Jaypee Greens with its inception in the real estate industry in the year 2002 brought about
a revolution in the concept of golf centric real estate development in India. With this
concept already very popular abroad, in countries like the U.S., Europe, Middle-East,
Australia etc, Jaypee Greens were the pioneers in conceptualizing the idea of golf homes
in India. The main idea was to give the residents a feel of resort living at the Jaypee
Greens residential community.

Despite being very new in the real estate industry Jaypee Greens successfully positioned
itself in the niche market as an aspirational product. It brought about a revolution in the
concept of urban living coupled with all luxuries that one can aspire for. After 4 years,
Jaypee Greens has now launched its second project in Noida which is 4 times as big as its
first project.

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Launched in November 2007, this is India‟s First Wish Town. If Jaypee Greens Greater
Noida was India‟s First Golf Centric Real Estate Development then Jaypee Greens Noida
is India‟s First Integrated Township spread over 1162 acres of land comprising one 18
hole and two 9 hole golf facility, world class residences that caters to the high-end
consumers and also to the mid segment of the society, commercial complex, medical
facilities, educational facilities that range from Kindergarten to Pre-university levels, host
of recreational facilities like social clubs, entertainment zone etc.

Information Technology

We are living in an era of information driven enterprise. Focus is consistently placed on


automation techniques that increase the productivity and profitability of the enterprise
with reduced costs across various functional heads. IT is an enabler in this context. The
Group‟s InfoTech arm JIL Information Technology Limited (JILIT) specializes in
providing services in the area of:

 IT Infrastructure Management
 Software Development & Consultancy
 Multimedia Services
 Content Management, Security & Delivery
 Multimedia based Educational Content Development
 Agricultural Content Development
 Learning Solution

JILIT manages the entire IT Infrastructure of the various Group companies that include
over 10 construction sites in some of the remotest terrains of the country including 200
cement locations in the interiors of India and 3 University Campuses that house over
7000 computers and various servers.
The company has set up and operates the largest private network of VSAT‟s in Northern
India that connect the Group‟s various project sites, cement locations and Hydropower
stations. This facilitates seamless connectivity for video conferencing of remote locations

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and data connectivity for the ERP solutions of the E&C, Cement and Hydropower
divisions and Educational institutions.
JILIT is one of the leading education content providers for schools in India. A pioneering
initiative was taken in the year 2000 when JILIT conceptualized and developed the first
of its kind digital classroom teaching aid that serves to assists in teaching, difficult to
visualize topics and concepts in Science, Mathematics and Social Sciences. Today more
than 10000 teachers in 500 schools across 152 cities and a few other countries for
example Dubai, Kuwait, Oman, Bahrain and South Africa trust our educational content
for adding value to their classroom teaching process and in turn providing benefit to over
150000 students. Other innovative solution from JILIT includes Campus Connect
(integrated resource planning solution for academic institutions), online testing tools and
Bizconnect.

Expressway

India has the world‟s second largest road network, aggregating over 3.34 million
kilometers. As Indian Economy grew in the early part of this decade, challenges &
opportunities across entire spectrum emerged and so was the case of large expressways
with unique model of ribbon development along it, which modeled as developed tracks of
New India.
The Group has entered into construction of expressways with the Yamuna Expressway
project – a 165 km access controlled 6 lane super expressways between Greater Noida
and Agra on Build – Own – Transfer basis. The project envisages ribbon development
along the expressway at 5 locations totaling 25 million square feet for
residential/industrial/institutional purposes and shall trigger multidimensional, socio-
economic development in Western U.P. besides strengthening the Group‟s presence in
real estate segment in this decade.

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Recently, the Group successfully bid for and was awarded all packages (pkg. 1 to pkg.4)
of prestigious Ganga Expressway contract by the Government of Uttar Pradesh. This is
the largest private sector infrastructure project in India. The Company had emerged as the
lowest bidder, as it bid for the least land for development, which was the most important
criteria for bid evaluation. The 1047 km long 8 lane Ganga Expressway would be
developed on the left bank of River Ganga, covering the stretch from Greater Noida to
Ballia (Eastern Uttar Pradesh). The project will be built on Built-Own-Transfer basis. The
Group would also get the rights for development of an estimated 30,000 acres of land
along the expressway.

Environmental Policy

Jaypee group believes that harmony between the man and his environment is the prime
essence of healthy life and living. The sustenance of our ecological balance is therefore
of paramount importance. The Group recognizes its joint responsibility with the
Government and the Citizens to protect and preserve the environment.

The Group is thus, committed to making its operations environmentally acceptable, on a


scientifically established basis, while fulfilling customers‟ requirements for excellent
quality, performance and safety.

As such, the group has evolved an Environmental Policy the aim of which is to do all that
is reasonably practicable to prevent or minimize, the risk of an adverse environmental
impact arising from our business operations while working with, in and around the
Nature.

The Environmental Policy reflects the continuing commitment of the Management and
Employees for sound Environment Management of its operations. The Policy applies to
bidding, sub-contracting, designing, planning, execution, testing, delivering service or a
product to the customer and handling complaints, if any. The Policy is thus applicable to
all the companies, subsidiaries, associates and affiliate companies of the Group.

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Social commitments
JAIPRAKASH SEWA SANSTHAN [JSS], a ‘not-for-profit Trust’ promoted by Shri
Jaiprakash Gaur, the Founder Chairman of the Jaypee Group, has been established to
discharge its responsibility towards the society. The sansthan functions with a holistic
approach for overall socio-economic development. Set up in 1993 the trust aims to realize
the corporate philosophy of “Growth with a Human Face” and try to help reduce the pain
& agony in society.
JSS has translated its social responsibility into reality by building up schools and training
institutes that cater to the needs of providing quality education to the rural masses. Under
the Comprehensive Rural Development Programme (CRDP) adopted in villages
surrounding the cement plant free health care and animal care programmes have been
undertaken. The trust helps in times of natural catastrophe to reach the affected
communities in distress.

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SWOT ANALYSIS OF JAYPEE CEMENT

Strengths

• Old entrant: Jaypee group is one of the oldest entrant in the Indian cement sector.
It has established its first plant in year 1983 in Rewa, Madhya Pradesh.
• International presence: Jaypee Cements has international presence in Nepal. It is
the highest exporter of cement to Nepal since last ten years.
• Efficient power utilization: Jaypee cement is known for the efficient power
utilization in the industry and it has created industry benchmark standards in
power utilization. In year 2005, Jaypee Rewa cement complex was awarded with
most energy efficient plant of the nation by Ministry of Energy, India.
• High quality cement: Jaypee Cement (PPC) surpasses the requirements laid down
by Bureau of Indian Standards (BIS) for flyash based PPC cement in IS:1489 Part
(I):1991

Opportunities

Growing demand: Infrastructure is the biggest growth driver for Cement

demand in the country. The central government is also heavily spending on


the infrastructure projects which have helped in growing the demand of
cement. If we were to look only at order books of the top eight construction
and manufacturing equipment companies in India, we find that their
combined order book has virtually doubled over the last two years from
INR1,000bn (USD25bn) to INR1,950bn (USD48.75bn) for completion over
the next 24-30 months.

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Weakness

• Lack of sea logistics: Sea logistics is very cheaper in comparison with road and
rail transportation. At present, Freight accounts around 15% of the total cost of
production in Company. This can be sustainably reduced if company adopts sea
logistics where it is feasible.
• Less market coverage: In comparison with ACC and Ultra-tech cements, Jaypee
cement has less market coverage. Jaypee cement is available in only nine states in
India.

Threats

• Entering of new companies: Foreign Cement giants are now eyeing on the Indian
cement sector and they have made substantial entry in the Indian market in the
form of mergers and acquisitions, FDI investment, etc. Some of these companies
include Holocim, Lafarge, Heilderberg, etc.
• Import –Duty free: Due to huge scarcity of the cement in the market, the
government has relaxed all the customs and tariffs associated in the import of the
cement. So, there is strong chances of lower quality cement being imported in the
market and may be sold at the lower prices.
• Increased production costs: Over the past five years, cost of cement

production has grown at a CAGR of 8.4%. This has compelled the


company to hike its prices whereas mini small plants have been
providing lower quality cements at lower prices.

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FINANCIAL ANALYSIS OF JAYPEE GROUP

The company has authorized equity share of Rs. 214.75 crores and all
shares were fully issued. The face value of share is Rs 2/share.

Details FY 06- FY 07- % Change FY 07- FY 08-09 % change


07 08 08

Gross 3594 4261 18.55% 4261 6148 44%


Revenue

PBT 620 843 36% 843 1251 48%

Net profit 415 610 46.9% 610 897 47%

Total 11196 17130 53% 17130 25557 49%


Assets

Dividend 36% 50% 50% 50% -

The gross revenue of the company has increased by 44% in fiscal year
08-09 as comparison to fiscal year 07-08. Similarly, the net profit of
the company has increased by 47% in fiscal year 08-09 as comparison
to fiscal year 07-08.The Company has been paying dividend at 50% of
the face value of shares during last year‟s. The Share of revenue from
Cement Division (including cement products) during the year 08-09
constituted 37.44% in its Gross revenue. Similarly, Cement sales in
FY 09 was at 76.07 lakh MT up 12.49% v/s 67.63 lakh MT in FY08.

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The performance of the company on the basis of ratio analysis is as
follows:

Ratios March-07 March-08

Current Ratio 2.7 2.6

Return on equity 19.1 13.7

Earnings retention Ratio 78.85 77.90

Inventory turnover Ratio 2.83 6.83

Net profit margin 11.61 14.35

FMS-BHU Page 39
Research
Methodology

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INTRODUCTION TO THE TITLE
The topic of the project work carried out by me was: “Implementation of retailer scheme
in the district of Allahabad”. The project was carried in the Allahabad district of Uttar
Pradesh. The main task of this project work was to find out how effectively the Retailer
Scheme of the Company has been communicated and implemented in the district of
Allahabad and how effectively it is being monitored.

A retailer is someone who sells goods in small quantities to the end consumer, from his
own shop. Retailers are viewed as the end of the supply chain logistics. Most of the
company provides some kind of scheme to the retailers for sales promotion. These may
include cash discounts, Quantity Discounts, Bonus, gifts, Cash coupons, etc. During my
project work, I was assigned to assess how effectively the Quantity Discount Scheme of
Jaypee Cements was being communicated, and how it is being implemented by the
company‟s field force.

The Quantity Discount Scheme of Jaypee Cement is as follows: The Company has two
types of scheme. One scheme is for exclusive Retailers and another for Multi-brand
retailers. Exclusive retailers are those retailers who sell only Jaypee cement and Multi-
brand retailers are those retailers are those retailers who are selling different brands of
cement including Jaypee cement. The exclusive retailers are provided with the benefit of
Rs. 2.5/bag whereas multi-brand retailers are provided with the benefit of Rs. 1.5/bag
upon the completion of scheme. The terms and conditions for both the retailers are as
same. The retailers have to fulfill a quarterly target of at least 45 MT, yearly target of at
least 180 MT, and they have to work for at least 10 months to get the scheme.

The marketing representatives of the company are responsible for the communication of
the scheme in a proper way at an appropriative time. These marketing representatives
include Field Officer, Sales Promoter, Area manager, and Deputy Area Manager. Apart
from the above channel partners like sales promoters and wholesalers are also made
responsible for communication of scheme to retailers. My task in this project work was

FMS-BHU Page 41
to see the role of various sales representatives of the company in the communication of
the scheme and how effectively they are discharging their duties and responsibilities.

For the monitoring of the scheme, The Company has used “Retailer off-take card”. This
card is popularly known as “YELLOW CARD” among the retailers because of its yellow
color. The card contains all the basic information of the retailer such as retailers name
and address, code , status of retailer, name of the wholesaler with whom the retailer is
attached and code number and a passport size photo for Owner identification. This card
also contains a number of columns in which the information about the cement purchased
by the retailer will be kept along with challan number and Quantity details.

My task in this project was to make the general observation of the yellow card and to see
whether it was properly filled or not.

OBJECTIVE OF THE PROJECT

The primary objective of the project is:


 To find out how effectively the retailer scheme has been communicated and
implemented in the district of Allahabad.
 To find out how effectively the scheme has been monitored.

The secondary objectives were:


 To suggest different measures to make the scheme attractive and meaningful.
 To analyze the frequency of scheme communication by marketing representatives of
company.

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SCOPE OF THE STUDY
A big boom has been witnessed in Cement Industry in recent times. A large number of
foreign players have entered the Indian market and are trying to gain market share in this
rapidly improving market. The study deals with the Retail scheme implementation of
Jaypee cements. This project is important in the sense that as competition has become
tougher with the entry of foreign companies, and national companies are also expanding
rapidly, all companies are introducing different schemes for retailers and trying to attract
retailers of other companies. In such situation, keeping retailers loyal to the brand is the
tough task for every company. For making strong relationship with retailers, companies
are introducing different attractive scheme for Retailers. This project aims to find out
how effectively the scheme of Jaypee Cements has been communicated and how
effectively it is being monitored. The study then goes on to evaluate and analyze the
findings so as to present a clear picture of trends in communication and monitoring of
Scheme.

SIGNIFICANCE OF THE STUDY


This is a limited study which takes into consideration the responses of 100 retailers. Out
of the 100 respondents, 50 are from inner Allah bad and 50 are from outer Allahabad.
Also, 50 of the retailers belong to Exclusive and remaining 50 retailers belongs to
Multibrand category. This data can be explorated to arrive at the trends of communication
and monitoring of scheme by the company. With the help of this project report, the
company can get information about how their scheme is being communicated and
monitored and the retailer‟s feelings regarding the scheme provided by the company.
With the help of this project, the company can also get an overview of task done by
various marketing representatives of the company in their respective areas.

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RESEARCH DESIGN
The research is primarily both exploratory in nature. Descriptive research design is one
that simply describes something such as demographic characteristics of consumers who
use the products. The descriptive study is typically concerned with determining the
frequency with which something occurs.

A well-structured questionnaire was prepared and personal interviews were conducted to


collect the information about scheme from the market. Furthermore, Observations of the
Yellow Card was also made to get knowledge on how the scheme is being monitored.

METHODOLOGY
Sources: Both primary and secondary sources of data were utilized for the nstudy.
Primary data was collected by means of administering a questionnaire to retailers.
Secondary data has been collected from various publications, periodicals, journals, etc.

Sampling Technique: The sampling technique chosen for the study was simple random
sampling. This is one of the most common methods of selecting the sample because
everyone has probability of being selected. This is because the retailers are located in
different areas of the city. It gives all retailers in a group an equal chance of being
selected for the purpose of the survey.

Sampling Unit: The retailers who were asked to fill out questionnaires are the sampling
units.

Sample size: The sample size was 100. Out of the 100 sample size, 50 were multi-brand
retailers and 50 were Exclusive retailers. Also, the Sample was collected in equal
proportion i.e.50:50 from inner and outer Allahabad areas.

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Sampling Area: The area of the research was the district of Allahabad in Uttar Pradesh
State.

Statistical Tool Used: The tools that were used are bar diagrams, pie-chart, and Co-
relation test.

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Data
Presentation,
Analysis, and
Interpretation

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1. Are you aware of the Jaypee‟s retailer scheme for Jan‟09-Dec‟09?
▪ Yes ▪ No

Response No. of Retailers

Yes 95

No 5

INTERPRETATION:-

Out of 100 retailers I have visited, 95% of the retailers have said that they were aware of
the scheme whereas rest of the retailers said that they were unaware of the scheme.

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2. Who communicated the scheme to you?
▪ FO ▪ SP ▪ SR ▪ Wholesaler

Representatives No. of Retailers

FO 66
SP 57

W 08

SR 70

INTERPRETATION:-

This was a multiple choice question. It is the responsibility of all these to communicate

the scheme to the retailers. Out of 95 aware retailers, Field officer, Sales promoter,

Wholesaler, and Sales representative had communicated in 66, 57, 08, and 70 retail shops

respectively.

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3. When was the scheme communicated to you?
▪Jan‟09 ▪ Feb, 09 ▪ March‟09

Month No. of Retailers

Jan 89
Feb 4
March 2

INTERPRETATION:-

This was a multiple choice question. As the scheme was launched in the month of

January, it was better to be communicated in January. Out of 95 aware retailers, 89 were

informed in the January, 4 were informed in February, and 2 were informed in March.

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4. How were the targets for January-March and April-June communicated to you?
▪ writing ▪ orally ▪ telephonically

Medium No. of Retailers

Writing 37

Orally 14
Writing/Orally 44

Telephonically 0

INTERPRETATION:-
This was a multiple choice question. The retailers can be informed about scheme by any
media. As per my findings, 44 retailers were informed in both writing and orally. No
retailer was informed by telephone whereas 37 retailers were informed in writing and 14
retailers were informed orally.

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5. What amount of incentive is available under the scheme to a consignee if the
target is achieved?

Response No. of Retailers

Correct 73

Wrong 22

INTERPRETATION:-

This was an open ended question. This question was asked to find out whether the retailer
has known the scheme amount clearly or not. Out of 95 aware retailers, 77% has
correctly responded the answer to the question where as rest has failed to sufficiently
answer the question.

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6. Under the scheme, a retailer shall be entitled to the incentive on material lifted through
▪The wholesaler he is attached with ▪Any wholesaler
▪No idea ▪By Company

Response No. of Retailers

Wholesaler attached 74
Any Wholesaler 0
No idea 13

By company 8

INTERPRETATION:-
This was a specific answer question. The answer to the question was Wholesaler
attached. Out of the 95 retailers who said they were aware of the scheme, only 78% i.e.
74 retailers has correctly answer the question whereas rest of the retailers has failed to
answer the question.

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7. You will be entitled to the incentive if you complete the target in
▪All qtrs. ▪Even in 1 qtrs. ▪At least 2 qtrs.
▪At least 3 qtrs. ▪No idea

Response No. of Retailers

All quarters 71

Even in 1 quarter 3
At least 2 quarter 1

At least 3 quarter 7

No idea 13

INTERPRETATION:-
This was a specific answer question. The answer to this question was all quarters. Out of
95 firms that said they were aware of the scheme, only 75% i.e.71 firms has answered the
question correctly whereas rest of the retailers has failed to answer the question.

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8) Does the retailer posses the yellow card?
▪Yes ▪No

Response No. of retailers

Yes 84

No 11

INTERPRETATION:-

Out of the 95 retailers who had said that they were aware of the scheme, 88% i.e. 84
retailers are possessing yellow card. Possession of the yellow card means they are
involved in scheme of the company whereas 11 retailers who were aware of the scheme
are not taking the scheme.

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9) Are the particulars like name, address, code, wholesalers name, code, etc entered on
the card?
▪Fully ▪Partially ▪Fully blank

Response No. of Retailers

Fully 74

Partially 6
Fully blank 2

INTERPRETATION:-
Out of the 84 yellow cards observed, 90% of the cards were fully filled, 7% of the cards
were partially filled whereas 3% of the cards were fully blank.

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10) Who have verified the yellow card from time to time?
▪FO ▪AMO ▪SR ▪No one

Representatives No. of retailers

FO 38

AMO 5
SR 76

No one 2

INTERPRETATION:-
This was a multiple choice question. It is the responsibility of all sales representatives to
verify the yellow card. As per my observation, sales representative of the company has
verified most of the yellow cards.

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11) Was the status (exclusive/multi-brand) mentioned by the visitors while signing the
card?
▪Yes ▪No ▪Sometimes

Status No. of Retailers

Yes 60
No 2

Sometimes 22

INTERPRETATION:-
Out of 84 yellow cards I had observed, 72% of the cards was filled with status, 26% was
sometimes filled with status whereas 2% was not filled with status.

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12) Status of the yellow card: Updating of Qty. till 1st Quarter:
▪Updated ▪Partially updated ▪Not updated

Status No. of Retailers

Updated 79

Partially updated 3

Not updated 2

INTERPRETATION:-

Out of 84 yellow cards I have observed, 94% were fully updated, 4% were partially

updated, and 2% were not updated.

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Analysis of Sales Data of 84 Retailers
The following data has been collected from the 84 retailers who are selling Jaypee
cement by watching the retailer off-take card (Yellow card) they are possessing. The data
shows the sales of the retailers of the 4th Quarter of year 07/08 and year 08/09.
Scheme Year Year
S.N. Retailers Name Address Year'08MT Year'09MT Type Amt. 08(bags) 09(bags)
51 62
1 Munna hardware Shivkuti E Rs.3100 1020 1240
42 49
2 Navdeep traders Katra M 1470 840 980
41 52
3 Prakash trading company Rasulabad E 1560 820 1040
32 45
4 Jamuna ct agency Rajapur M 1350 640 900
35 47
5 Ms. Kashiram suraj prakash rajrooppur M 1410 700 940
28 36
6 Kesarwani cement agency Tagore town M 0 560 720
37 46.5
7 Ahmad trading company Teliarganj M 1395 740 930
38 46
8 Kesarwani ct. agency rajrooppur M 1380 760 920
49 51
9 Prabhu dayal & brothers mutthiganj M 1530 980 1020
52 54
10 Jaiswal cements Rajapur M 1620 1040 1080
57 61
11 Sandeep enterprizez mutthiganj M 1830 1140 1220
41 50
12 Maa gayatri traders hanumanganj M 1500 820 1000
38 47
13 Sweta enterprizez Katra E 2350 760 940
40 46
14 J.K. associates mutthiganj E 2300 800 920
33 43
15 Shukla marbles Naini M 0 660 860
37 48
16 Chawala brothers daraganj E 2400 740 960
38 46
17 Bhola nath traders manjhanpur E 2300 760 920
41 53
18 Raj Hardware Bhirpur E 2650 820 1060
47 57
19 Triveni ct. agency Allapur E 2850 940 1140
49 56
20 Lallulal satish chandra Attarsuia E 2800 980 1120
51 49
21 Anubhav hardware Bhirpur E 2450 1020 980
60 60
22 K.P. jaiswal ct. agency Allapur E 3000 1200 1200
40
23 Chanchal ct. agency nehru nagar 47.5 E 2375 800 950
39 45
24 Deepak enterprizez Katra E 2250 780 900
36 45
25 Rakesh enterprizez Dhoomanganj M 1350 720 900
42 51
26 Allahabad ct. crporation noorullah road M 1530 840 1020
45 49.5
27 Adarsh ct. agency Sahson M 1485 900 990
51 57
28 Kesarwani stores Allapur E 2850 1020 1140
48 55
29 Hamza traders Kareli M 1650 960 1100
Nahar 33 45
30 New raju hardware Dadhauli E 2250 660 900
38 45
31 Vijaya loha bhandar Allapur M 1350 760 900
30 41
32 Satish chandra & sons Himmatganj M 0 600 820

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Scheme Year Year
S.N. Retailers Name Address Year'08MT Year'09MT Type Amt.(Rs) 08(bags) 09(bags)
34 44
33 Shivam kesarwani Soranv M 0 680 880
37 46
34 P.K. Jaiswal ct. agency Thornhill road E 2300 740 920
41 50
35 Santosh & brothers Zhalwa E 2500 820 1000
36 45
36 Jamuna enterprizez Salori E 2250 720 900
Transport 46 53
37 Grover traders nagar E 2650 920 1060
50 54
38 Ms. Ashok traders Soranv E 2700 1000 1080
32 46
39 Manish building Material Salori E 2300 640 920
38 47.5
40 Vijaya brothers Mundera E 2375 760 950
22 33
41 Thakur prasad & sons Chowk M 0 440 660
43 50
42 Ashok kumar & brothers Kydganj E 2500 860 1000
37 49
43 Ms.Kashiram suraj prakash Rajrooppur E 2450 740 980
41 48
44 Saurabh ct. Agency Mutthiganj E 2400 820 960
38.5 45
45 Kesarwani ct. agency Sahson E 2250 770 900
35 45
46 Manish building material Salori E 2250 700 900
37
47 Maa Gayatri traders Hanumanganj 46 E 2300 740 920
40 50
48 MS. Kashiram suraj prakash Rajrooppur E 2500 800 1000
42 50
49 Adarsh ct. Agency Sahson E 2500 840 1000
45 53
50 Vijaya brothers Mundera E 2650 900 1060
42 38
51 Deepak enterprizez Katra M 0 840 760
50 46
52 Grover traders mundera E 2300 1000 920
55 23
53 Anubhav hardware Bhirpur M 0 1100 460
31 38
54 Purushottam lal & kumar Rajapur M 1140 620 760
34 45
55 Kesarwani ct. agency Tagore town E 2250 680 900
37 44
56 P.K. jaiswal ct. agency Thornhill road M 1320 740 880
45 49
57 Kesarwani ct. agency Thornhill road E 2450 900 980
47 54
58 Vijaya Loha bhandar Allapur E 2700 940 1080
48 53
59 Rahmat ullah khan manjhanpur E 1590 960 1060
39 44
60 Kesarvani marbles Allapur M 0 780 880
41 45
61 Lallu lal satish chandra Attarsuia E 2250 820 900
33 43
62 Kesarwani store Allapur M 0 660 860
35 47
63 Munna ct. agency Zhalwa E 2350 700 940
37 46
64 Rakesh enterprizez Dhoomanganj E 2300 740 920
33 45
65 Haq traders Karbala M 1350 660 900
40 46
66 K.P. Jaiswal ct. agency Allapur M 1380 800 920
32 41
67 Vinod paint house Lookarganj M 0 640 820
37 45
68 Triveny ct. Agency Allapur M 1350 740 900
39 48
69 Pooja paint house Himmat ganj M 1440 780 960
35 39
70 Chawla Brothers Daraganj M 0 700 780

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Scheme Year Year
S.N. Retailers Name Address Year'08MT Year'09MT Type Amt. 08(bags) 09(bags)
37 45
71 Kesarwani brothers Katra M 1350 740 900
41 50
72 Sweta Enterprizez Katra E 1500 820 1000
46 50
73 Prayag ct. agency Allapur E 2500 920 1000
34 45
74 Laxmi Enterprizez Katra M 1350 680 900
57 54
75 Bandhu hardware Allapur E 2700 1140 1080
46 50
76 Jaiswal cements RAjapur E 2500 920 1000
42 51
77 Sri Sain Traders mutthiganj E 2250 840 1020
38 45
78 Sanjay Traders Kaushmbi M 1350 760 900
39 47
79 A.K. enterprizez mutthiganj E 2350 780 940
49 55
80 Satyam cenents Katra E 2750 980 1100
52 54
81 Pankaj Enterprizez mutthiganj E 2700 1040 1080
38 46
82 Navdeep traders Jhalwa E 2300 760 920
Transport 40 49
83 Maharani ct. Agency nagar E 2450 800 980
35 45
84 Shiv traders Mutthiganj E 2250 700 900
TOTAL 3455.5 4052

While analyzing the above data collected, I have found that there has been increase in
sales of 79 firms, one firm has constant sales, and 4firms has decreased sales. There were
11 such firms which sales has been increased but failed to fulfill the target.50 firms were
such who has been selling below 45 MT but now after the implementation of the scheme
they are selling more than 45 MT. Also, there has been the increase in total sales of the
company by 17% in 4th Quarter of 07-08 as comparison to 4th Quarter of 08-09.

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On editing the above data on quantity intervals of 5 MT, we get the following data:

Quantity (MT) Year’07/08 Year’08/09

20-25 1 1

25-30 1 0

30-35 12 1

35-40 28 4

40-45 18 7

45-50 13 42

50-55 7 21

55-60 3 5

60-65 1 3

Total 84 84

The graphical presentation of the above data is as follows:

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The cement Industry has witnessed a sales increase 4th Quarter of fiscal year 08/09 by
9.92% whereas Jai Prakash Associates limited-Cement Division has witnessed a sales
increase by 12.46% in 4th Quarter of fiscal year 08/09. Similarly, the company sales had
increased by 17% in Allahabad region during the 4th Quarter of year 08/09. Thus, by
seeing the industry and company sales trends, we can easily say that the sales of the
company have been increased as a result of scheme implementation.

SPSS co-relation test of above sales table

The co-relation test with the help of SPSS has given us value of 0.692. As we know the
value of co-relation coefficient lies in between -1 to +1. Since the co-relation of the above
data is 0.692 and it is greater than +0.5 and close to +1, we can say that scheme has role
in increase in sales.

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Findings,
Suggestions, and
Limitations

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FINDINGS

1. Though 95% retailers said that they were aware, but the real picture was not as they
had said.

Out of 95 retailers who told that they were aware of the scheme, I have found that only
73.15% of the retailers were aware of scheme amount, 74.10% retailers were aware about
from whom they will get their scheme, and only 67.45% retailers were aware about
quarterly fulfillment requirements of the scheme.

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2. The monitoring of the scheme was poor.

As per my findings, only 83.60% of the retailers are possessing yellow card. Out of those
yellow cards I have observed, 75.60% of the yellow cards are filled will all particulars
like name, address, code, etc. whereas 60.48% of the cards was filled with status of
retailer, and 78.96% of the cards was filled with quantity updation.

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CONCLUSION

During six weeks of my training, I visited many of the retailers of Jaypee cement
companies and got appropriate information to fulfill the requirement of my project.
Actually market surveys help the companies to assess the situation of the market and their
strengths and weaknesses. I did the survey to assess information on communication of
retailer‟s scheme of Jaypee cement in Allahabad district and to find out the impact of
scheme on sales. After collecting data and final analysis of collected data, I have come
with following conclusion.

Though the company‟s marketing representative had worked hard to communicate the
retailers scheme, there needs more deliberate and conscious efforts to make this scheme
more meaningful for both company and retailers. The retail scheme communication and
monitoring process in middle path. It can neither call a success nor a failure. It‟s because
majority of the retailers know that Jaypee cement has lunched scheme but they don‟t
know terms and conditions. Also the implementation of yellow card has not been done
properly. Most of the yellow cards are not filled with company and wholesaler challan
number. Furthermore, it has been seen that the parties involved in communicating the
scheme has not proper coordination.

Though the sale of the company has been increasing, in my view market factor has
played a greater role for this because the construction sector is rapidly growing these
days. Also, there is less supply than demand in the market. Due to this sale has been
increasing.

Thus, company should give proper attention to maintain coordination between marketing
representatives and maintain an information system to keep record of yellow card
implementation activities.

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SUGGESATIONS
1. As majority of the multi-brand retailers are unclear about the scheme benefits, its terms
and conditions, Company should direct its Marketing representatives to explain about the
scheme again and again while the visit the retailers shop.

2. Presently, the company is providing the targets (MT) to retailers in writing, but not
scheme amount they will get per bag. To avoid the scheme benefits confusion, the
company can also add this in its document.

3. The company has no specific time frame to distribute the scheme to the retailers. The
company should try to specify the specific scheme distribution date in advance so that the
retailers can get their benefits as soon as possible. This helps to keep the retailers
motivating and brand loyal.

4. Due to the lengthy order execution time period of Jaypee cements, the retailers find
difficult to fulfill the targets given. Company should be aware of this fact.

6. Some of the retailers have told about wholesaler‟s abolition on them. As a result of
this, some retailers are finding difficult to trade with them. This is a loss to the company.
So, company should regularly watch the relation between wholesalers and retailers.

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LIMITATIONS OF THE RESEARCH

1. The research is confined to a certain parts of Allah bad and does not necessarily
show a pattern applicable to the whole district.

2. Lack of cooperation from the retailers in regard to giving interview.

3. It was found in some cases retailers showed inclination towards certain brands
which gave them more margins when compared to others.

4. It was experienced during the survey that it was difficult to convince or make the
retailers understand the important of the project.

5. Cost and Time constraints.

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BIBLIOGRAPHY
• C.R. Kothari (2008). Research methodology methods and techniques, new age
international publishers, second edition.
• Phillip Lasserre (2007). Globalization cement industry, global strategic
management.
• Shobhit chandak (2006). Report on cement industry in India.
• http://business.mapsofindia.com/cement/ retrieved on 1.06.2009
• http://www.economywatch.com/business_and_economy/cement_industry.html/
retrieved on 14.06.2009
• http://www.jalindia.com/ retrieved on 11.06.2009
• http://www.ibef.org/industry/cement.aspx/ retrieved on 11.06.2009
• http://www.equitymaster.com
• http://www.moneycontrol.com
• http://www.cma.or

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