Summer Training Project Report On

Comprehensive study of J.K White Cement

A report submitted to Ishan Institute of Management & Technology, Greater Noida in the partial fulfillment of full time Post Graduate Diploma in International Business.

Submitted To: Dr. D.K Garg, Chairman, Ishan Institute of Management & Technology, Greater Noida

Submitted By: Rohit Gupta ENR NO: - IBR-4023 BATCH- 15th PGDIB

Ishan Institute of Management & Technology

2, Knowledge Park-1, Greater Noida, Dist.- G. B. Nagar (U.P.) Website: www.ishanfamily.com, E-mail: student@ishanfamily.com

PREFACE
Till up to late 80s cement companies were engrossed, in measures to increase capacity utilization of their plants at the lowest possible cost. Their managers used to solely on achieving high production efficiency. This was because of the wide gap that existed between demand and supply of cement. The government announced various schemes and concessions to the otherwise controlled industries in phases and at various point of time. This triggered off a remarkable about of investment on the part of entrepreneurs including large professional houses; some of them were entering in the foray of cement production. Towards the end of 80s as a result of heavy investment, production of cement was at its peak with supply outstripping demand. The cement manufacturing association made serious efforts to find ways to increase cement consumption. It submitted various proposals to the government to the export of cement and its uses in building concrete roads, canal lining and other tech-economic sectors. Companies also shifted their attention from output to quality, performance distribution, packaging and other marketing activities.

CERTIFICATE
This is to certify that the project work done on Comprehensive study of J.K white cement submitted to Ishan Institute of Management & Technology, Greater Noida by Rohit Gupta in partial fulfillment of the requirement for the award of degree of PG Diploma in International Business is a bonafide work carried out by him under my supervision and guidance. This work has not been submitted anywhere else for any other degree/diploma. The original work was carried during for any other degree/diploma. The original work was carried during 05-05-2010 to 05-07-2010 in J.K White cement.

Date:

Seal/Stamp

Mr. Rajesh Sharma Deptt. Of HRD J.K White cement Kanpur

INTRODUCTION
The crux of the success of any company lies in between of growth and sales. I undertook my summer training as a mandatory part of the curriculum of my Post Graduate Diploma in international Business (P.G.D.IB) course. The summer training was done in a reputed company J.K. White Cement, Kanpur. The duration of the project was 05/05/010 to 05/07/10. This project is proved to be extremely fruitful under the expert guidance of my project guide. It gave me vast exposure to the marketing scenario. The report herewith deals with the topic Comprehensive study of J.K white cement. It is concerned with identifying the potential of J.K. White Cement in the Kanpur market, the various findings of the survey among retailers in Kanpur, which includes studying their perception and preferences for different brands of white cement.

ACKNOWLEDGEMENT
Prior to present anything about the project I want to express my sincere gratitude to all those scholars who have contributed in making it success. I would like to express my deep gratitude to Mr. Rajesh Sharma, Dy. HRD for giving me honour to work with this esteem organization. I am highly indebted to my project guide Mr. Shrikant Mishra, A.S.M. and Mr. Anurag Chudhery, M.E in JK white cement in Kanpur for leaving no stone unturned in providing each and every detail, which I need throughout the project and also provide me such an assignment which enhance my knowledge in the field of the marketing management and he provide me opportunity to learn some technical knowledge as well as practical knowledge of marketing. Under the training I was felling very comfortable like a team member, I have got full support from all marketing team member. Last but not the least I am also grateful to Mr.M.M khan (Adv. HRD) for providing me the facility for carrying out this task their company. It will be matter of pleasure for me if the readers will draw useful conclusion from the report.

DATE July 2, 2010

Rohit Gupta

DECLARATION
The summer training project on Comprehensive study of J.K white cement under the guidance of Mr. Anurag Chaudhary M.E in JK white cement Kanpur is the original work done by me. This is the property of the institute & use of this report without prior permission of the institute will be considerable illegal & actionable. Date:Rohit Gupta ENRNO: - IBR4023

CHAPTER 1:- COMPANY PROFILE

INTRODUCTION OF THE COMPANY:- J.K White Cement is the unit of J.K Cement Ltd. The
main founder of J.K Group was Lt. Lala Jughilal Singhania and Lala Kamlapat Singhania in 1920 the plant of J.K Cement was established in 1984 at Gotan, Rajasthan. J.K. White Cement pioneered the White Cement industry in India by setting up a state of art plant at Gotan District Nagaur, Rajasthan, the site of worlds purest Limestone deposits. Shri Y.P. Singhania who is a civil engineer from IIT Kanpur and also a renowned industrialist of India, keeping view the demand of White Cement taken interest to setup a plant of White Cement. Plant started production in 1984. Today it is the largest selling and exported White Cement and completed 25 successful years in the market .J.K. Cement is an affiliate of the J.K. Organization, which was founded by Lala Kamlapat Singhania. The J.K. Organization is an association of industrial and commercial companies and has operations in a broad number of industries. The foundation stone of J.K. Organization was laid by Late Lala Juggi Lal Singhania and his son Late Lala Kamlapat Singhania in 1920, helping the nation to become power in the world. Shri Padampat Singhania succeeded in fulfilling the vision and dream of his Grandfather and Father and made J.K. Organization as the 4th largest private sector conglomerate in India. The generation that succeeded, fulfilled the same vision and dream to build to build the enterprise that is J.K. Organization today. Though much has changed in the country and the organization, the original values have remained. The strength on which the J.K. Organization was founded is still the driving force and the founders vision, its inspiration. Since from their establishment they are working hard to provide best product to their consumers. At present J.K White is supplied all over the world, they are producing 3 lakh 50 thousand metric tons J.K White Cement is been certified by ISO 14001 (EMS) and OHSAS 18001 and SA8000. Today, J. K. Cement Ltd. is one of the largest cement manufacturers in Northern India. We are also the second largest white cement manufacturer in India by production capacity. While the grey cement is primarily sold in the northern India market, the white cement enjoys demand in the export market including countries like South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri Lanka, Kenya, Tanzania, UAE and Nepal.

J.K.ORGANIZATION
J.K. Organization has a vast portfolio which comprises of various units. Following are the names of the member industries of J.K. Organization. 1. J.K. Synthetics Textiles White Cement 2. J.K. Industries Tyre 3. J.K. Paper 4. J.K. Corporation Industrial scenario of cement industry:-Growth of Cement Industry is always linked to economic growth of the country. Cement demand has posted a healthy growth of 11.16% in fiscal 2005-06, which is substantially higher than 8.57% of the previous fiscal. Industrys production was also higher. However, this created a favourable demand supply scenario leading to price increase. Industry experts expect this trend to continue for at least 2 3 years before new capacities announced are implemented. The prices are now at a level, which support new units to come in. It is a matter of great satisfaction that the present growth in Cement industry is based on fundamentals of development of infrastructure in the country and growth of housing sector both in rural and urban India. Governments relentless efforts in this direction are worth appreciating. I am very confident that cement industry in India is bound to progress heaps and bounds.

White cement industry has limited growth possibilities and options both in terms of production facilities and market opportunities. Product substitutes play a vital role in affecting the demand of white cement. Growth of white cement industry during 2005-06 fiscal was 3.6% only. Current scenario of cement industry:- The Grey Cement units are operating at 100% capacity utilization and impact of better prices would substantially improve the profits of the Company in the current year. The Grey Cement capacity expansion plan of 0.5 million tonnes has been completed in June 06 within the planned cost and time frame. The additional production in the subsequent quarters will further strengthen the Companys position in the market and improve the profitability. White Cement capacity expansion from 0.35 to 0.4 million tonnes is in advanced stage and will be completed in Septemeber06. As regards power projects, majority orders have been placed and these projects are expected to meet the timeline. Current scenario of white cement industry: - The world-wide white cement industry size is about one percent of grey cement industry and in India it is much less than compared to the grey cement industry size of about 189 million tonne per annum. Unlike grey cement, the white cement industry in India is highly concentrated. There are only three manufacturers of white cement in India out of which Tranvancore Cement is restricted to Kerala, whereas JK White and Birla White, the two largest players are having national presence and account for a major chunk of Indias production capacity. Consequently, prices of white cement have been relatively less volatile. The growth of domestic white cement industry was negligible during 2007-08.Wall putty continued to find increasing acceptance from the end consumers and recorded significant growth in 2007-08 over 2006-07.

BACKGROUND OF THE COMPANY:- White cement industry is quite old in India in 1956.
Travencore Cement Limited (TCL), a Kerla state government undertaking, started production of white cement in India. The production unit was at Kottayam in Kerla. The installed capacity of the unit was 51,000 Mt/Year and the white cement was made out of seashells. At the same time ACC also started production of White Cement. They had two units one at Kymore in Madya Pradesh and other at Porbander in Gujarat. The installed capacities of the units were 25,000 Mt/Year and 35,000 Mt/Year respectively. The brand name was Silver Crete. The White Cement of ACC was not pure white due to the Wet Process technology used by them. Thereafter in 1984, the famous business group J.K. entered into the foray of White Cement production. Their production unit was imported from world leaders in cement F.L. Smidth & Company Denmark. The installed capacity of unit was 80,000 Mt/Year which has increased to 3, 00,000 Mt/Year. The brand name of J.K. White Cement is Camel Brand. In 1988, another big business house entered into production that was Birla Group. Birla White was the initial name of this White Cement by the company. In between, some other companies also entered in to the production of White Cement Nihon Nimam Limited was one of them. They installed the unit at Gotan (Rajasthan) capacity being 2,50,000 Mt/Year and they had collaboration with Nihon Japan. Subsequently at Porbander in Gujarat, Himalaya Cement Company with Brand name Hansa also entered into market. One of the big dealers of ACC, Raghawjee of Karnataka also entered into the production. This lead to a boom in the White Cement market. Around 1986 ACC Cement was shut down as its demand in the market was reducing as Wet Process Technology they used was unable to maintain the appropriate standard of whiteness. Along with it other companies like Nihon and Himalaya were also closed due to same or other reasons. Now there is Oligopoly in White Cement Market. Market is consisting of only two big players-: J.K. & Birla. Milestones in JK white cement:- company is completed 25 successful year of their operation. Some of the successful year in which company create millstone is given below:Year 1975:-Commencement of operations Nimbahera facility comes into being with initial capacity of 0.30 MTPA. Year 1979:-Capacity expansion at Nimbahera, capacity more than doubled from 0.30 MTPA to 0.72 MTPA by adding a second line.

Year 1982:- Third production line added at Nimbahera, with increase in capacity from 0.72 MTPA to 1.14 MTPA. Year 1984:- Commencement of lime-based white cement plant at Gotan, with a capacity of 0.05 MTPA. Year 1987:- Installation of captive thermal power plant at Bamania. Year 1988:- A pre-calciner installed at Nimbahera, capacity enhanced to 1.54 MTPA. Year 1990:- The Architect of the Year award instituted. Year 1994:- The Regional Training Centre for Northern India, established at the Nimbahera plant with aid from the World Bank and the Danish International Development Agency, commenced service. Year 2001:- Establishment of a new Grey Cement plant with a capacity of 0.75 MTPA at Mangrol. Year 2004:- Capacity at Nimbahera expanded to 2.8 MTPA Year 2006:- This year a very successful year for the J.k organization. In this year company crated several milestones. Capacity of White Cement at Gotan enhanced to 0.35 million tonnes Public issue 20 million Equity Shares of Rs. 10/- each at a price of Rs.148/- per share, following the book-building route Grey Cement capacity at Nimbahera increased to 4 million tonnes Jaykaycem Ltd. became a wholly owned subsidiary of the Company and acquired land to set up a Greenfield Grey Cement plant at Mudhol, Karnataka Year 2007:- Acquired assets of M/s. Nihon Nirmaan Ltd. to produce an expected 0.50 million tones of Grey Cement and Capacity of white cement at Gotan enhanced to 0.40 million tones. 31st March, 2008:-Production and sales of grey cement touched an all-time high of 3.77 million tonnes and 3.76 million tonnes, respectively, during the year. Further, production of Putty (a value added product of white cement) increased by 39%.

HEAD OFFICE AND BRANCH OFFICE OF THE COMPANY: - J.K. White Cement is a
division of J.K. Synthetics Limited, a 870 corer Rs. company which is a leading company of India. J.K. White Cement works has its Head Office (HO) at Kamla Tower, Kanpur. They have segmented their marketing area in to four Zones. Mr. Yadupati Singhania is the Managing Director (MD) of J.K. White Cement Works. Earlier all marketing activities were carried out from the companys Head Office located at Kamla Tower, Kanpur but now a days they have shifted their marketing activities to Delhi and being controlled by President (Marketing), Mr. V.P.Singh from Delhi. Copenhagen in Denmark is Home Of F.L. Smith & Company world leader in white cement. In its long and distinguishing history only one has F.L. Smith parted with the original planet that produces the perfect white cement with dry process. And its technical head office in the Ashok Nagar, Udainagar, Rajasthan. And branch offices of the company are spread all over the India.

AREA OF BUSINESS OF THE COMPANY:- India is the worlds 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.Basically J.K White cement deals in the production of white cement and grey cement but also provided water proof and wall putty. Company also provides grey cement but it is not as much as popular as white cement.

Financial Overview:- JK Cements consolidated net sales went up from Rs. 1,233.33 crores in 2006-07 to Rs. 1,458.25 crores in 2007- 08, recording a growth of 18.24 per cent. The net profit moved up from Rs. 178.62 crores in 2006-07 to Rs. 265.17 crores representing a growth of 48.46 per cent. This growth was achieved through the continued investment in the business for reducing costs and creating greater value, such as modernization of the facilities and introducing newer technology to achieve better operational results. Moreover, to enhance shareholders value, the work on brown field facility of Nihon Nirmaan and on a Greenfield facility at Mudhol, Karnataka is well under way. Facts and Figures:-

income (in lacs)

2008-09

2007-08

2006-07 0 income (in lacs) 20000 40000 60000 80000 100000120000140000160000 2006-07 124402.64 2007-08 146610.99 2008-09 150474.74

Total Income

working capital(in lacs)

2008-09

2007-08

2006-07 0 working capital(in lacs) 10000 20000 30000 40000 50000 60000 70000 2006-07 31652.35 2007-08 38042.05 2008-09 58706.76

Working capital
Financial Highlights:For the year:Year Total Revenue(in lacs) Profit After tax(in lacs) 2008-09 150475 14234.4 2007-08 146611 26516.59 2006-07 124403 17861.7 2005-06 87851.9 3256.93 2004-05 33881.6 629.72

HUMAN RESOURCE OF THE COMPANY: - Hiring the talent, motivating and retaining them
and ensuring their development is a foremost challenge in todays business environment. Your Company focuses on building an expert talent base. We groom existing talent as well as fresh recruits from reputed professional institutions in a variety of areas to enable them to take on positions of greater responsibility. On and off the jobs training programs are organized through internal and external 35 resources. Employees are also benefited by the Regional Training Center at the Grey Cement Plant at Nimbahera. The Company firmly recognizes that its human resources are the major source of strength to achieve the Company vision. There is a great team spirit amongst the member of staff. They are key to achieving its vision and are the primary source of competitive advantage. The total number of permanent employee of the Company as at March 31, 2008 was 1664. Further, the Company has a stable and experienced middle and senior level management team, many of whom have been with the Company for more than 20 years. Labour relations have been cordial for over two decades with no interruption of manufacturing activities.

BOARD OF DIRECTOR OF THE COMPANY:- Dr. Gaur Hari Singhania is Chairman, holds
a Master of Arts degree in Economics and a PhD degree in Economics from Agra University. He has corporate experience spanning 50 years. He has been associated with the Company as its Promoter Director and has led our Company since its inception in 1994. He is also the Chairman of JKSL, Juggilal Kamlapat Cotton Spg. & Wvg. Mills Company Limited and J.K. Traders Limited. J.k organization chart

NAME
Mr. Y.P. Singhania Mr. R.G. Bagla Mr. J.P. Bajpai Mr. M.P. Rawal Mr. B.K. Arora Mr. V.P.Singh Mr. A.K. Saraogi Mr. Rajesh Sharma Mr. M.M.Khan

DESIGNATION
MD & CEO Group executive president President (H.O.) Taxation & Company Law Senior Vice President Technical Project Mgmt. Services Senior Vice President Works President Marketing President CE &CFO Corporate Affairs Manager Human Resource Adv.Human Resource

THE COMPLETE HIERARCHY OF MARKETING DEPARTMENT

Vice President (Marketing)

General Manager (Marketing)

Deputy G.M. (Marketing)

R.M.(East)
Area Sales Mgr Astt. Manager

R.M. (West)
Area Sales Mgr Astt. Manager

R.M. (North)
Area Sales Mgr Astt. Manager

R.M. (South)
Area Sales Mgr Astt. Manager

Marketing Executive Astt. M.E. Sales Supervisor Sales Trainee

Marketing Executive Astt. M.E. Sales Supervisor Sales Trainee

Marketing Executive Astt. M.E. Sales Supervisor Sales Trainee

Marketing Executive Astt. M.E. Sales Supervisor Sales Trainee

*RM = Regional Manager *ME = Marketing Executive

CHAPTER 2- OBJECTIVE
MANAGEMENT PHILOSOPHY:- Company fallows the fallowing philosophy .
Customer satisfaction Consistent investments in the most contemporary technology available Creation of a wide and deep distribution network Expansion through all routes Greenfield, Brownfield and acquisitions Constant focus on cost control & quality Investment in development of the best talent and intellectual capital creation Ensuring retention of people and achieve a low people turnover Ensuring a happy and progressive society is a constant priority

VISION OF THE COMPANY:- Company always been inspired by the vision of our founders, our
own resilience and ability to constantly challenge the paradigm. And every once in a while, we add a new chapter to this continuous journey of inspiration. J.K. Cement is an inspired organisation. The small beginnings have today accrued to relevant profits and resilience to weather storms. This is J.K. Cements story of fighting odds, of raising benchmarks, of institutionalising the spirit of tenacity, responsibility and winning against the odds, which defines our inspiration. To the illustrious story, J.K. Cement now adds a new chapter, the greenest till date, the Mudhol plant in Karnataka. The determination to defend and mark out territory, to the participatory instinct in laying a foundation to build histories of candid successes is what J.K. Cement stands for today.Company also have strong brand image in the mind of the consumer so company want to maintain that image with the help of his product and its quality. Company did not compromise with quality of white cement and its whiteness. And company also covers up number no-1 spot in Indian cement industry. For this company also provide the number of technical services to their consumer and dealer such as CTS. Company focused only two Visions. Fill the demand and supply gap:-company wants to fill up the demand and supply gap in the peak season because his strong manufacturing process is situated in the Gotan, Rajasthan and supplied all over the India. After the era of plenty, the cement industry is likely to bogged down by a supply crunch in the near future, projection of a significance growth in domestic demand on account of tremendous boost of housing finance spurt in rural development in to make it necessary to create additional capacity as well as existing one so as to avoid a potential shortage. Over the decades, demand for cement raised at the rate of 8% per anum from 30.2 million tons in 1980-81 to 49 tons in 1990-91 likewise the partial decontrol of cement in 1982. Fallowed by a subsequent withdrawal of distribution of price control in 1989 greatly encouraged capacity there by enabling supply to match demand in 1990-91. Varying estimate has been made about cement consumption in the nineties. While the study conduct by the ICICI projects demand to grow at 8.5% per anum during the eight plan period reaching 69 million tons by 19944-95, the CMA (Cement Manufacture Association) has adopted more cautious approach by pegging demand growth at 7% per anum. Reducing the cost: - J.k white cement is the leading brand name in the industry of white cement in India and also wants to minimize the cost because the price band tries to factor in benefits of lower power cost more than a year in advance. J.k cement (JKC) is one of the leading and largest cement in the manufacturing in north India and second largest white cement producer in India. The company has two grey plant in Rajasthan, with production capacities of 2.8 million tones and 0.75 million tons per anum respectively and a white cement plant in Rajasthan with a capacity of 0.30 million tons per anum. Catering to the northern region (13% market share for grey cement), JKC holds leader ship in Haryana, with market share of 18.4%. Its other market are Delhi, Rajasthan and Punjab where its ranks in the top six player.

MISSION OF THE COMPANY: -

J.k white wants to delivered that kind of product which help the fulfill the needs of dealer and its final consumer because company knows that Technologies change, needs change, and in turn products change. What remain unchanged, are values and ideas that propel any entity forward. Ideas that are concrete and unwavering, just like their outcome. At JK Cement we are crossing milestones, one after another, propelled by the following concrete ideas:

To provide products that fully comply with technical specifications committed to our customers, at the most competitive price. To ensure complete reliability in our dealings with customers, distributors, suppliers & other partners. To operate our manufacturing facilities in such a way, that they help sustain the environment & provide new opportunities for the underprivileged in that region. To ensure that every department of our every office encourages new & better ideas and freedom of expressing the same, and cultivate a work environment that rewards excellence in every employees chosen area of work leading to a harmonious & fulfilling atmosphere. To motivate every team member to challenge his last best performance and out do it continually. To remain abreast and imbibe the latest technological trends for the benefit of our customers.

VALUE OF THE COMPANY:- J.K white cement have a lot of valuable quality which differ
from the its competitor. These are mention below:One of the Leading white cement producer in India:- White cement accounted for 16.6% of our total cement revenue and 35.2% of adjusted EBITDA from our cement operations in fiscal 2005, and 15.5% of revenues and 26.7% of our adjusted EBITDA from our cement operations in the six months ended September 31, 2005. Unlike grey cement, the white cement industry in India is highly concentrated with the two largest players accounting for the substantial majority of Indias production capacity. Consequently, prices of white cement have been relatively less volatile and sales of white cement have generated more stable cash flows for us even during industry downturns in grey cement. We also believe our position as the second largest producer of white cement in India, together with our nationwide delivery network, significantly enhances the overall brand image of JK Cement. Leading position in attractive Northern India grey cement market:-Based on CMA data, Northern Indian cement manufactures have consistently operated at the highest levels of capacity utilization among Indias five regions. We believe this reflects the strong demand in Northern India for cement products relative to supply. Further, based on capacity expansions announced by cement manufacturers, we expect cement plants in Northern India to continue to operate at high utilization levels and anticipate continued strong demand for our grey cement products in the near and medium-term. company believe that we are well positioned to take advantage of this demand, as the fourth largest grey cement manufacturer in Northern India, and the largest grey cement manufacturer in the state of Rajasthan. Proximity and access to large reserves of high quality limestone:- We have access to large reserves of limestone for both our grey and white cement operations, which we believe are sufficient to sustain our operations well into the future. Based on independent geological surveys of different mines during 1996 to 2001, we believe that our limestone reserves are sufficient to support our current and planned capacity for approximately 40 years for both grey and white cement. (Put in risk - assuming we are able to renew our existing leases upon their expiry) As one of the first cement producers in Northern India, we were able to choose our limestone reserves in an area with high quality limestone resources. In addition to allowing us to produce white cement, which requires high quality limestone, it also provides us with a cost advantage, as we are not required to purchase sweeteners to improve the quality of limestone. Further, our manufacturing plants are in close proximity to our limestone reserves, resulting in lower transportation costs. Finally, our mines that supply our white cement plant at Gotan also have a supply of white clay, an important additive necessary for white cement production.

Quality of products and strong brand name:-We believe that brand name and reputation are important to retail purchasers of cement in India. We have built a strong reputation among cement purchasers by consistently providing high quality products. We believe that there is strong customer awareness of our brands, JK Cement (Sarvashaktiman), for grey cement in our principal market in Northern India, and JK White (Camel), for white cement across India. Further, we believe that our brand name and our reputation for consistently supplying high quality products provide us with a competitive advantage in ensuring that cement dealers carry our products.

Company also acquire some other value which helps in the creating the competitive advantage towards its competitors. Advance Technology:-J.K. White Cement is using state of art technology to ensure the consistent quality of raw-materials and manufacturing process. Raw Materials:-High grade and chemically pure Lime Stone is the basic raw material for the manufacture of white cement. J.K. White Cement plant is located at Gotan; district Nagpur in the state Rajasthan, which is one of the best known source of such Lime-Stone. Stringent Quality Control:-J.K. White Cement manufacturing and quality control facility involves technical expertise of F.L. Smith & Company, Denmark, the world leader in cement technology. This essentially gives a upper hand to J.K. White Cement from other in Quality. Latest Quality Control Equipment:-Quality Control by computer & X-Ray (QCX) Analyzer: This equipment ensures quality of materials at all stages of production, online. Fuzzy Logic:-The entire manufacturing activity right from the grinding of the Lime Stone to packing the cement is controlled by the most sophisticated computerized technology called Fuzzy Logic. Whiteness:-Perfect white cement which is free from coloring impurities and is strikingly white. Cost Economy:-The higher fineness of J.K. White Cement eliminates excess milling of grinding and also gives spreading capacity and so there is a saving of white cement cost.

CHAPTER 3:- C.S.R AND POLICY OF THE COMPANY

Company knows that technologies change, needs change, and in turn products change. What remain unchanged, are values and ideas that propel any entity forward. Ideas that are concrete and unwavering, just like their outcome. At JK Cement we are crossing milestones, one after another and also fallows the ethics of the business and highly priority to welfare of the society and environment.

CODE OF ETHICS AND BUSINESS CONDUCT OF JK WHITE CEMENT:Introduction: - Company is committed to conducting its business in accordance with the applicable laws, rules and regulations and with highest standards of business ethics. This code of conduct (hereinafter referred to as the code) has been framed and adopted by the company in compliance with the provisions of clause 49 of the listing agreement entered into by the company with the stock exchange and is intended to provide guidance and help in recognising and dealing with ethical issues, provide mechanisms to report unethical conduct, and to help foster a culture of honesty and accountability. Each director, members of the senior management team and the company secretary (hereinafter referred to as senior managers) is expected to comply with the letter and spirit of this code. The directors and senior managers of the company must not only comply with applicable laws, rules and regulations but should also promote honest and ethical conduct of the business. They must abide by the policies and procedures that govern the conduct of the company's business. Their responsibilities include helping to create and maintain a culture of high ethical standards and commitment to compliance, and to maintain a work environment that encourages the stakeholders to raise concerns to the attention of the management. Honest and Ethical Conduct:-The directors and senior managers shall act in accordance with the highest standards of personal and professional integrity, honesty and ethical conduct not only on company's premises and offsite but also at company sponsored business, social events as well as any places. They shall act and conduct free from fraud and deception. Their conduct shall conform to the best-accepted professional standards of conduct. Corporate Opportunities:-Directors and senior managers owe a duty to the company to advance its legitimate interests when the opportunity to do so arises. Directors, senior managers are expressly prohibited from: Taking for themselves personally, opportunities that are discovered through the use of company's property, information, or position, Competing directly with the business of the company or with any business that the company is considering. Using company's property, information, or position for personal gain. If the company has finally decided not to pursue an opportunity that relates to the company's business activity, he/she may pursue such activity only after disclosing the same to the board of directors or the nominated person/committee. Confidentiality:-The directors and senior managers shall maintain the confidentiality of confidential information of the company or that of any customer, supplier or business associate of the company to which company has a duty to maintain confidentiality, except when disclosure is authorised or legally mandated. The confidential information includes all non-public information (including private, proprietary, and other) that might be of use to competitors or harmful to the company or its associates. The use of confidential information for his/her own advantage or profit is also prohibited. Fair dealing: - Each director and senior manager should deal fairly with customers, suppliers, competitors, and employees of group companies. They should not take unfair advantage of anyone through manipulation, concealment, abuse of confidential, proprietary or trade secret information, misrepresentation of material facts, or any other unfair dealing practices.

Protection and Proper Use of Company's Assets:-All directors, senior managers should protect company's assets and property and ensure its efficient use. Theft, carelessness, and waste of the company's assets and property have a direct impact on the company's profitability. Company's assets should be used only for legitimate business purposes. Compliance with Laws, Rules, and Regulations:- The directors, senior managers shall comply with all applicable laws, rules, and regulations. Transactions, directly or indirectly, involving securities of the company should not be undertaken without pre-clearance from the company's compliance officer. Any director or senior manager who is unfamiliar or uncertain about the legal rules involving company business conducted by him/her should consult the legal/company law department of the company before taking any action that may jeopardize the company or that individual. Compliance with Code of Conduct:- If any director, senior manager who knows of or suspects of a violation of applicable laws, rules or regulations or this code of conduct, he/she must immediately report the Same to the board of directors/its committee thereof or the compliance officer. Such person should as far as possible provide the details of suspected violations with all known particulars relating to the issue. The company recognises that resolving such problems or concerns will advance the overall interests of the company that will help to safeguard the company's assets, financial integrity and reputation. Violations of this code of ethics will result in disciplinary action, which may even include termination of services of the employee. The company's board or any committee thereof for this purpose shall determine appropriate action in response to violations of this code of ethics. Interpretation of Code: Any question or interpretation under this code of ethics and business conduct will be handled by the board /committee authorised by the board of the company or the compliance officer of the company. The board of directors or any designated person/committee has the authority to waive compliance with this code of business conduct for any director or senior manager of the company. The person-seeking waiver of this code shall make full disclosure of the particular circumstances to the board or compliance officer/ committee. Code of ethics for Senior Financial Officers:-Honesty, integrity and sound judgment of the senior financial officers is fundamental for the success and reputation of the company. The professional and ethical conduct of the senior financial officers is essential to the proper functioning of the company. The senior finance officers as well as directors of the company shall be bound by the following code of ethics: Act with honesty and integrity, including the ethical handling of actual or apparent conflicts of interest between personal, financial and professional relationships, Make full, fair, accurate, timely, and understandable disclosure in reports and documents that the Company files with, or submits or makes periodically, to the shareholders, government authorities, and to the public, Comply with governmental laws, rules, notifications and regulations applicable to the Company's business, Disclose to the Board or any committee/officer designated by the Board for this purpose, any material transaction or relationship that reasonably could be expected to give rise to any violations of the code including actual or apparent conflicts with the interests of the company, Promote prompt reporting of violations of the Code of Ethics to the Board of Directors or any person/committee designated for this purpose, as may be necessary, Respect the confidentiality of information acquired in the course of employment unless legally obliged to disclose and ensure that no such confidential information is used for personal advantage/benefit, Maintain the skills necessary and relevant to the Company's needs, Act in good faith, responsibility, with due care, competence and diligence without misrepresenting material facts,

 Refrain from any inappropriate or undue influence of any kind in all dealings with independent auditors, and avoid any actual or apparent conflicts with analysts, Achieve responsible use of and control over all assets and resources employed or entrusted to them, Promote ethical and honest behaviour within the Company and its subsidiaries, All senior financial officers should adhere to both the code of business conduct and the code of ethics of the Company. Violation of the code of ethics will lead to appropriate disciplinary action including dismissal from the services of the Company Any deviation/waiver from this code can only be affected on the sole and absolute discretionary authority of the Board or any person/committee designated by the Board for this purpose.

CARPORATE SOCIAL RESPONSIBILITY: -The Companys Corporate Social Responsibility

can be divided into 4 segments (a) Rural Development providing water among others. (b) Medical facilities funding hospitals, eye testing facilities, family planning. (c) Educational facilities primary as well as higher secondary education, vocational training and private university. (d) Religious endeavours. In 2007-08, the Sir Padampat Singhania University at Udaipur, under the aegis of the J.K. Cement Nimbahera Foundation, was established. The University is one of the leading educational institutions in the region. It offers technical degrees and a variety of academic facilities in an ecological setting. The LK Singhania Education Centre, Gotan is a CBSE-affiliated co-educational institution that imparts education to children of both plant employees and also those from neighbouring villages. The Company also runs two industrial training institutes that offer vocational training to increase the marketable skills of its students. Moreover, the Company undertakes free maintenance services in surrounding panchayats. It has contributed in building a community temple, making potable water available and built roads to connect schools. The Company has also founded a hospital and Nimbahera Dispensary to ensure better health care. The Company regularly conducts plantation and environment friendly activities in the vicinity of its facilities. Furthermore, arranging sports and developmental activities and financial aid to the Lions Club, the Rotary International and other charitable organisations are part of J.K. cements societal endeavours. Responsibility is the virtue of taking control, of ups and downs, profits and losses. As a socially viable organisation, J.K. Cement recognises and fulfils the duties of living and operating within an inseparable and meticulously interdependent network. Company is fully cautious of its responsibilities towards social cause such as the quality of life of employees, welfare of the community and protection of the environment. Company made substantial contributions to the Prime Ministers Relief Fund for Tsunami victims for their rehabilitation out of this tragic disaster. Company regularly carry out various activities in support of community around its manufacturing facilities by organizing health camps, financial aid and honour to meritorious students, subsidized education, free bus service to students of nearby villages and construction of temples, Dharamshala, hospitals etc. Concrete Road with proper drainage system at Gotan village:-There was no good motor able road available in Gotan and J K management, in the public interest and considering the society as a whole, took the initiative and as a part its social responsibility took up the project of construction of Cement road at Gotan. We constructed the cement road of 1Km. with proper drainage system incurring an expenditure of around Rs. 30 Laces in the year 1991. It proved to be a very helping hand especially for incoming and outgoing heavy traffic besides easing out the hurdle of the resident of Gotan.

On demand of villagers, Company has taken the repair as well as renovation work of the said road in November 2005 on which approximately Rs. 10 to Rs. 15 Laces has been incurred. The waste water is collected out of the village through the drainage system constructed by the company and it is stored in pond and it helps us to increase underground the water level. Sponsorship of annual Eye camps at Gotan:-Till date 20 eye camps have been held i.e. one camp every year. Free medical eye check up at Gotan. Free bus service for operation at Jodhpur/ Ajmer. Free lodging & Boarding and medicines as well as spectacles to all the patients. Yes, the eye operation is through IOL operation and operation is conducted in well-equipped hospital at Jodhpur / Ajmer. We bring the patients to the hospital by bus i.e. checking of the patient is done at Gotan in camp and operation is done in Hospital in operation theater and all the expenses is borne by the company. Approx. 2500 eye operations have been conducted till now. In the every camp the outdoor patient is varying from 800 to 1000 and out of that approx. 125 patients are being selected for eye operation and remaining is given the free medicines/ spectacles in the camp. Hence now approx.15000 patients were benefited. In the year 2005-06 we have conducted 2 eye camps i.e. to tribute to Late Sir Padampat Singhania one extra eye camp was held at Dhanappa village. Street Light for Gotan village:-Though there was facility for electricity in the village, which is so erratic, the roads and streets were not at all provided with lights. Gotan being a most backward area, no major help/support finance or otherwise was forthcoming from the Panchayat /Local Bodies and hence it was thought necessary by our company in the public interest to lend a helping hand and accordingly as per the requirement, we purchased and installed minimum of 50 Street lights to cover major road/streets i.e. the street light has been installed on the road constructed by the company as well as roads of other area also. Tree plantation along the road leading to Gotan:-Gotan is situated in backward Distt. Of Nagaur which falls in the desert area of Thar Rajasthan (India). As a step towards environmental protection, the company has undertaken plantation project since commissioning of the plant and every year 5000-10000 trees of various types are planted in Gotan and nearby area of 20 Km. radius and as on date, Gotan has been developed considerably and has become a green belt in comparison to its surrounding area. This, no doubt, strengthens the ecological position but also helps in bringing more rains during monsoon period in comparison to other nearby areas. The company is incurring approx. Rs. 1, 00,000/- every year. This is also one of major contributions made by us for towards soil conservation and thus ensuring pollution free environment for Gotan and it surroundings. Plants are planted at mines area, various schools of Gotan village, nearby small dhanies, public places, and temple and along the road. For survival of the plant company directly take care to look after of mines area, plantation along the major roads of Gotan and plantation at temples. The plants of other area are being looked after by the concerned authority like Panchayat, Lions Club, School administration etc Organizing Social event for residents of Local area:-Details about such events. Celebration of Dussehra festival - The Dussehra mela is organized every year and preparing the effigies of Rawan, Kumbhkaran & Meghnad from well renowned artist from Kanpur and famous Aatishbaji through Pink city Fire Works Jaipur. Around 25000 gatherings witnessed the mela every year. Durga Pooja Durga Pooja is celebrated every year in complete Navaratra and various religious and cultural program based on the Indian traditions are performed during this pooja ceremony and large No. of peoples enjoyed the Aarti and cultural program every evening. At the end of the program the Visarjan & Vijay Sammelan is performed in which all the villagers participated. Janmasthami Festival On this occasion various Jhankies are displayed and Bhajan and Kirtan are arranged by the various artists and large No. of gatherings from Gotan and nearby area are benefited by this program.

Annual function of temples JK has renovated two temples of Gotan village - one is Ramdasji Shyamdasji Samadhi and second is Baba Narayandasji at Chhepianada (Hanuman Temple). Every year on 17th July and 6th February the Annual Function is organized with Ratri Jagaran and open lunger for all public. In both the functions approx. 8000 to 10000 public were participated. Funding & Technical support for Infrastructure projects of Local Community:- Details about the projects and all the supports provided. Tube Well-to provides drinking water for villagers:-Time and again Rajasthan is affected badly due to scarcity of drinking water and this year also it is suffering from drought. People particularly in interior places suffer very much and in order to take care of this very essential requirement, we have extended our helping hand by digging of tube wells in most needed and essential areas. So far we have dug up three tube wells in different places (electrically operated) along with storage tank etc. in public interest. For this we have spent approx. Rs. 10 lakes. Temple (Renovation of two old temples):1-Renovation of Samadhi of Baba Ramdas Shyamdasji: In Gotan, there is a famous Samadhi of Baba Ramdas Shyamdasji, which was then considered next to a Temple in the near vicinity. Public here are ardent worshipper and follower of this great Samadhi and thousands of devotees visit this place to offer puja with large faith. It was a very old Samadhi and the place where it is housed was in a dilapidated condition and needed repairs/renovation and as a step towards religious work, JK White Cement undertook complete renovation of Samadhi building and also constructed two temples in the same premises by installing two idols, (one Lord Shiva and second Bajrangbali/ Hanumanji) where daily puja is being held. Further a Sat sang Hall has also been built for the convenience of SHRADHALU/Devotees. The total expenses made by JK White Cement were Rs. 20 Lacks approximately. Every year, the company celebrates the Anniversary of Installation and Consecration ceremony of deity in which a large gathering (around 10,000) participates with great enthusiasm. Besides offering puja, havans and other devotional functions, the company provides annadhan/ Bhog and Prasad for the entire mass inclusive of many poor villagers and the company on this account spends about Rs. 1.50 Lacks per year. 2. Construction of Hanuman Temple at Chepianada. It is situated in interior part of Gotan i.e. about 5 KM away from our factory and here the villagers are of great worshipper and follower of HANUMANJI and of course, we are also a true and firm believer of Bajrangbali. But unfortunately the village was deprived of having any temple to worship and they approached the management for construction of a temple there. Considering the genuineness of the demand as per Hindu mythology and also considering the fact that we too owe something to the society, the management agreed and constructed a temple of medium size by installing an idol of Hanumanji made of famous Makrana Marble. A big Satsang hall has also been built for facilities of devotees to offer various puja, kirtans, havans and other functions. Approx. Rs. 20 lakes have been spent for this temple. Every year, to celebrate the Installation Anniversary of the deity, the company makes elaborate arrangements at the temple for conducting Puja, Havan and Bhajans and other devotional functions. Pujas and Havans are conducted by the priests and as a part of service to community belonging to Gotan and nearby villages we distribute Annadhan/ Bhog and Prasad to the entire gathering. Regular gathering is approx. 8000-10000 and approx. expenditure incurred is Rs. 1.5 Lacks. Dharamshala (Inn) at Gotan Village:- Rendering hospitality as much as possible is a continuous process at JK. In order to give shelter and comfort for the visiting pilgrims and the public at large (Below Poverty Line) we have constructed a Dharamshala/ Rest House at Gotan near railway station. The rest House has 10 rooms with all living facilities such as Water, Electricity, Beds and other arrangements for stay including the service of security guard. The accommodation is given free of cost and nothing is being charged by us on any account. For this construction we had spent about Rs. 10 lakes. We also are keeping regular maintenance of the same.

Free education to the wards of Kargil war heroes:- Help to family members of martyrs of kargil war We salute the martyrs of Kargil war. Mrs. Sushma Arora, Vice President motivated the School staff, Ladies and complete JK White Cement team for a good cause. Her dynamic leadership and commitment resulted in raising a fund amounting to Rs. 21 lakh. All the employees have contributed their one-month salary for this noble cause. (As on date, total fund is Rs. 30 Lacks). A trust has been created under the guidance of Mrs. Sushma Arora to provide free education to the wards of Kargil Heroes of Nagaur District in our School, giving them free education with free boarding and lodging facility. After a detailed survey and persuasion, we have been able to provide this facility to 11 children of war-affected heroes of Nagaur District. Out of them 4 students already completed their study up to 10+2 level and as on date 7 students (3 boys + 4 girls) are studying in our school. It has been our pride achievement to persuade such affected families to send their girl child to Hostel. As the traditions of the remote locations are very restrictive, it will be our nonstop endeavor to help a child to pass 10+2 education with the help of this Trust. Further if any student wants to carry on his further study the financial help will be provided through the trust. All the local administrators as well as Govt. and media persons have appreciated this noble cause. The employees of JK have taken this project as a challenge to uplift the life style and education level of kids of Kargil Martyrs of Nagaur District. Free bus service for students of nearby villages:-The Company is operating 4 Nos. School Buses free of cost for bringing the wards of the Gotan villagers and nearby area in the radius of 25 Km. all the expenses is borne by the company. The free bus facility is for the students who are studying in our school. Construction of Panchayat building: - The Sarpanch of Gotan Gram Panchayat approached for renovation of Panchayat Building specially changes of flooring by White Cement. The company has under taken the job of flooring of complete Panchayat Building by incurring approx. Rs. 50,000/-. Building for girls school at Gotan village:-Promoting and providing education to both girls and boys is one of our of most ambitious projects and is primary motto of our organization. In Gotan village, there was no separate Senior Secondary school for girls and hence parents do not send their daughters in Coeducational institute. Looking the above genuine need and to keep our commitment on and to serve the needy public, company took up this project with State Government t and Local Panchayat and contributed Rs. 10 Lacs approximately for construction of the school. *The company has contributed towards construction of new building and other infrastructures like furniture. This is Govt. school. *The fee is charged as per Govt. norms which is already subsidized one and very nominal. Construction of Hospitals and colleges: Most modern & suitably equipped Lala Kamlapat Memorial Hospital at Kanpur. JK Institute of Radiology & Cancer Research at Kanpur. Kailashpat Singhania Institute of Medicine at Kanpur. Lakshmipat Singhania Institute of Cardiology at Kanpur. 100 beded Jaykaylon Womens Hospital at Kota. 100 beded Jaykaylon Womens Hospital at Jaipur. Propagated & popularized a number of family planning schemes. Encouraged research in occupational & eye-diseases in different units of JK organization. Dr. Gaur Hari Singhania Institute of Management at Kanpur. JK business school at Gurgaon. Construction of Dharamshala: Set up a number of Dharamshala, Sadavratas, Alms-houses Built townships for needy workers in Kanpur, Kota, Jaykaypur, Nimbahera etc.

Construction of Temple in township:-JK has also established places of worship to set the moral tune of society. They have constructed Shri Dwarka Dhish Temple, Shri Kamleshwar Temple, Ghats on bank of Ganges, Shri Radhakrishna Temple, other temples at Raman Reti and Brindaban. They have also helped constructing temples, mosque, church, gurudwara in Jaykaypur. Construction of Temple in township:-JK has also established places of worship to set the moral tune of society. They have constructed Shri Dwarka Dhish Temple, Shri Kamleshwar Temple, Ghats on bank of Ganges, Shri Radhakrishna Temple, other temples at Raman Reti and Brindaban. They have also helped constructing temples, mosque, church, gurudwara in Jaykaypur. Construction of school buildings in nearby villages:-From time to time the villagers / Sarpanch of Gotan village and nearby other villages approached company management for maintenance and repair of school buildings or extension of new rooms/ Verandah. As a social contribution to the villagers the company has taken maintenance job like flooring, Plaster of walls, providing of furniture, drinking water facility and toilets in various schools of Primary, Middle & Secondary. All the jobs have been taken in the Govt. school where the kids of poor families are studying. Construction of roads connecting with the highways Provide drinking water facilities in nearby villages by bore wells Operating an Industrial Training Institute affiliated with National Council for Vocational Training, Govt. of India:- JK Organization has not ignored in the least the head for providing to the public suitable health resorts and stadium for games & sports. Due to its hardships and mankind efforts, JK has won the esteem of general public & appreciation of people in high authority in state as well as union government. For instance, Late Dr. Rajendra Prasad, the first President of India laid the foundation of the JK Institute of Radiology & Cancer Research in 1963, Pandit Jawaharlal Nehru inaugurated the JK Institute of Applied Physics & Technology in 1956. Other milestones: JK White Cement Works, Gotan is the first in India to produce white cement through dry process. Lala Kamlapatiji visualised the idea of chamber of commerce in UP for businessmen, of businessmen, by businessmen. He laid the foundation stone of merchants chamber of UP in Kanpur in 1932 & remained the founder president for 2 years. Running two schools: Padam Vidya Vihar- From K.G. to Vth Class & Kailash Vidya Vihar From VIth to XII affiliated with Central Board of Secondary Education (CBSE) Govt. of India. More than 1000 students study in these schools. Organization has devoted a substantial portion of the earnings from its ventures for promotion of public good & welfare such as the provision of medical relief, spread of education, relief to poor etc. Education: 23 primary schools in rural areas of Kanpur . Established JK Institute of Sociology & Humar Relations (dedicated to Lucknow University). Providing financial assistance to educational institutions which include the BNSD Inter College, Juhari Balika Vidyalaya, GNK Inter College. Awarded loans and scholarships to deserving students for higher education. Established JK Institute of Applied Physics and Technology (dedicated to Allahabad University). Built hostel for women (dedicated to Kashi Vidyapith). Built schools at Mumbai, Rayagadha (Orissa), Kota (Rajasthan) and other industrial towns.

Environment concern:- To feed the required limestone to our cements plants, we hold four mining leases at Ahirpura, Maliakhera, Karunda and Tilakhera where mining is carried out using deep hole drilling and blasting. But a lot of care has been taken to negate the ill effects of this ecology affecting activity. To begin with, we have converted the dry drilling into wet drilling, water is sprinkled on the haul roads, dense plantation has been cultivated around the working pit, Sequential Blasting Machine and down the hole delay are being used to reduce noise, vibration and fly rock. Water is kept stored in the forth bench for use during summer as it also helps recharge the ground water table. Forestation is carried out at all the four mines as a part of the mining process. Till date, a total of 2, 85,396 plants have been planted covering a total area of over 65 hectares. Necessary arrangement for watering these plants, ensuring their survival, has also been done in the form of construction of 6 water tanks combined with the facilitation of direct water supply pipelines and water tankers We have also focused on the Waste Dump Management. The generation of waste material along with mining of limestone at all our mines, is almost negligible. However, some waste like Interstitial Clay, when generated, is excavated separately and dumped at the specified places. These waste dumps are being properly leveled which are then covered with black cotton soil scraped from other parts of the pit only. This forms the bed for plantation or forestation. The height of the dumps is kept only 5 to 6 mtrs. So that there will be no chance of destabilizing of these dumps after plantation in the long run. Besides, JK Organization, is also involved in setting up a number of Primary Schools, Secondary Schools, Industrial Training Institutes, Institutes of Management & Research, Institute of Medicine, Institute of Cardiology, Institute of Radiology & Cancer Research and Dr. Gaur Hari Singhania Academy of Productivity Science & Environmental Engineering.

Tree plantation at Gotan village

CERTIFICATION:-JK white cement product also recognized by various parameter such as working
culture, environment, quality and safety And its product are certified by the government .The explanation of these parameter is given below.

ISO:-international standard organization is a system which adopted by any company os that working
should be smooth.Jk white cement is got ISO 9001(QMS) and ISO 14001 (EMS) OHSAS 18001 and SA 8000.

ISO 9001 (QMS):- Quality measurement standard maintains the quality of the JK white. ISO 14001(EMS):- environment measurement standard concern about the products integrity of the
products. Their means products are environment friendly or not. Product did not harm to the nature.

OHSAS 18001:- This standard keeps the eyes on the security and welfare of the employee. It means in
the production of white cement all the employee wears mask and glapes during process of manufacture of the white cement.

SA 8000:- Social accountability standard keep the eyes on welfare of the society it means that what is
doing by the company for the welfare of the society and employees.

CHAPTER 4:- PRODUCT, PLANT AND SERVICE OF THE COMPANY

J.K. CEMENT PRODUCT RANGE:-Basically company deals in the production of fallowing
products 1-White Cement 2-Wall Putty 3-Water Proof The year was 1984 the company J.K. White Cement works with F.L. Smith. The essential ingredient for any White Cement is Lime Stone, purer the Lime Stone the White will be the Cement. J.K. White Cement has installed for the first time in the world the FUZU LOGIC PROCESS CONTROLS SYSTEM and QCX (QUALITY BY X-RAY). QCX is fully computerized chemical supervision and control system, which covers the various processing stages of cement production, based on the X-Ray Spectrometer technique providing accurate analysis of chemical composition. This twin system i.e. FUZZY LOGIC SYSTEM and QCX SYSTEM has greatly helped in producing matchless quality of White Cement. When it comes to White Cement a shade of difference makes all the difference and to create the difference J.K. went all the way to Denmark to F.L. Smith World leader in White Cement. Architects have for long looked for the perfect White Cement. Cement that sets quickly, spread evenly and smoothly and of course perfectly white. J.K. provides technical and design related services for builders and architects. J.K. White Cement has been awarded with ISO - 9001:2000 certificates for its quality management system standard applicable to manufacturing and sale of white cement by LIOYDS REGISTER QUALITY ASSURANCE. Company has also ISO-14001 certificate, which is issued to a company for a pollution free production means an Eco-friendly Production. Application of white cement:- J.K white cement have numerous decorative, structural and architecture application in white, light and dark color as moral, plaster .concrete precast components and finished goods. It also have fallowing application. For Floors:

Insitu terrazzo floorind Manufacturing and laying of mosic tiles. Pavements blocks with top layer of white cement or coloured cement. Extra heavy duty cement concreate tiles. Area markets Tile fixing grout

For walls:

Decorative waterproof cement paint White washing with white cement Sand face spray plaster Exposed aggregate (grit wash) plaster. Textured plaster (malad/ stone create) Cast stone finish / marble finish plaster Plain plaster Pointing on brick / stone work Precast cladding panels

Other application: Architerure concrete components made of GRC (glass fibre reinforced concete) SRC (synthetic

fiber Reinforced concrete) Ornamental objects such as grills, lamp etc. China mosaic Italia glass mosa Very soon company is going to launch a new product that is J.K. Tile Bond. Features of j.k. white cement: - J.K. White Cement works on manufacturing Camel Brand conforming to I.S.I. 8041 and 8042 specifications, but in the market the name of J.K. White Cement is more popular than camel brand name. The main features of product which makes it exclusive are: It is not greenish white or bluish white or yellowish white but it is perfect white due to absence of colouring impurities of iron-oxide and chromium-oxide. The whiteness of J.K. White Cement is very consistent and has been proved to be dependable and long lasting. J.K. White Cement is using world famous flawless Lime Stone from Gotan in Rajasthan. It has very compressive strength. It is the only white cement with rapid-Harding properties. It is the only white cement that sets quickly, spreads evenly and smoothly. The mixing and dispersion of pigments with the product becomes more efficient due to its timer panicles. The product of J.K. White Cement imports four important properties to concrete which are very essential for successful contrite. They are: Bond Strength Water Tightness Abrasion Resistance

TYPE OF CEMENT: - All products of JK comply with the quality standards specified by the Bureau
of Indian Standards (BIS). Our cement products are marketed under the brand names J.K. Cement and Sarvashaktiman for OPC products, J.K. Super for PPC products and J.K. White and Camel for white cement products, which company believe are well known brands. Grey Cement:- Grey cement produced by us consists of OPC and PPC. There are also other cements in the market that we do not produce, such as Portland slag cement, oil well cement, sulphate resistant cement, rapid gardening cement, low alkali cement, low heat cement and super finish cement.OPC has three grades that we produce, that are differentiated by their compressive strengths, expressed in mega pascals (MPa), as specified by the BIS.These grades are 53-grade OPC, 43-grade OPC and 33-grade OPC, with 53-grade OPC having the highest compressive strength. The customer selects the grade of OPC based on the intended application. Our most popular cement, by sales volume, is 43-grade cement, with 53grade cement being used in applications which require high strength characteristics. Ordinary Portland Cement:- OPC is produced by inter-grinding cement clinker prepared in a rotary cement kiln with gypsum. Each metric ton of OPC requires approximately 0.95 metric tons of clinker and approximately 0.05 metric tons of gypsum. The range of applications, the physical and chemical requirements specified by BIS and strength of the three grades of OPC are discussed below: 53-grade OPC (IS:12269-1987): 53-grade OPC is a high strength cement. According to the BIS requirements, 53-grade OPC must have a 28-day compressive strength of no less than 53 MPa. For certain specialized products, such as pre-stressed concrete and certain pre-cast concrete items requiring high strength, 53-grade OPC is considered useful as it can produce high-grade concrete at lower cement content levels. We produce 53-grade OPC by exposing the clinker.

Company provides all other cement products in different brand name which are mention below. 1-Sarva Shaktiman J.K. Cement, 53 Grade As per IS: 12267/1987 (BIS: 12-1991, ASTM: C-150-1989) The high strength Cement for Covering a wide area of construction. Better performance and concrete durability. Time Saving. Greater Economy 2-Ordinary Portland J.K. Cement, 33 Grade As per IS : 269-1989 (BIS: K-1991, ASTM: C-150-1989) The general purpose cement for
Better Civil construction.

Ideal Setting-time. Low Shrinkage. Greater Economy

3-The International J.K. White Cement As per IS : 8042-1989 (BIS : 12-1991, ASTM : C-150-1989) The only White Cement in India which is Produced in the computerized kiln control. Perfect White Cement with no colour impurities. Stronger with exclusive features of rapid hardening. 4-J.K. Silicate Cement (BIS : 1484 (PENLL)-1991) It offers Higher sineneu ensuring low permeability. Better work ability ensuring easy working. Higher ultimate strength ensuring durability. Salient feature of J.k wall putty:- J.k wall putty have many feature which differtiate the competitive product. These qualities are mention below. Company do not recommended mixing of pigment/ stainer in the wall putty. Quality of painted surface is directly proportional to quality of un- painted surface. J.k wall putty renders ideal condition as un-painted surface for paint application. Paint can be applied on J.K wall putty with or without primer. However, use of primer shall give cost advantage in case of expensive paint. Lustrous white and smooth surface which can be left unpaid. Life of J.K wall putty is as long as the life of grey cement plaster underneath. It prevents growth of algae and fungus on walls. Any kind of distemper can be applied on it directly. Textured finish can be obtained by use of texturing tools. As prevalent in case of other non-cement putties, primer application is not recommended before J.K wall putty application. This saves cost.

THE PACKAGING OPTIONS:- Marketing is a process, which incorporates all the transactions
affecting the movement of goods and services from producer to the consumer. Packaging is a marketing tool, which is closely interwoven with the performance of marketing function other than selling, although most emphasis has been laid on that aspect. J.K. White Cement packaging was scientifically designed to ensure zero wastage and check adulteration. It is being packed in 50Kg, 40 Kg, 10 Kg, 5Kg and 1Kg. 1. 50 Kg Packs: It is being sold in paper laminated jute bags and HDPE bag. Laminated jute bags are better for long duration of storage. 2. 40 Kg Packs: for the export market J.K. White Cement packs in 40 Kg packs. 3. J.K. White Cement is also selling white cement in 10 Kg, 5 Kg and 1 Kg packs. It is convenient to the consumers for their needs. Wall Putty:- JK wall putty is available in different packing :1- 1 kg PP. packets put in 20 kg secondary HDPE bag for ease of handling. 2- 5 kg packs put in 20 kg secondary HDPE bag for ease of handling. 3- 20 kg laminated P.P. bag. 4- 40 kg laminated P.P bag. Water Proof:- JK Water Proof pack is available in 2 different sizes i.e. 1 kg & 25 kg.Water proof comes in 25 Kg of bags which contains 25 packs of 1Kg packing.

PRODUCT APPLICATIONS
J.K. White Cement:- Company manufacture white cement under the brand names J.K. White and Camel. White cement is produced using a different quality of limestone and is distinguished from grey cement by its white color. Each ton of white cement requires approximately 1.33 tons of limestone, 0.02 tons of gypsum and 0.2 tons of additives including white clay, feldspar and fluorspar. J.K. started manufacturing white cement using for the first time in India by the dry process technology in 1984 at Gotan in Rajasthan. Today, the plant produces 2, 50,000 Mt/Year of the Perfect International White Cement. It has different application. Terrazzo Flooring Grit Wash Cement Paint Manufacturing Sand Spray Plaster White Washing Ornamental Use Garden Furniture Flower pots White cement is typically used in three principal areas of application, as set forth below:-Flooring, for the manufacturing and laying of mosaic tiles and as tile fixing grout, wall applications, such as decorative, white cement paints and plain and spray plasters; and Other specialized applications including glass fiber reinforced concrete, garden furniture, lamp posts, as pointing for brick and stone works and as pre-cast cladding panels. Company sells white cement primarily in the Indian market. We also export white cement to a number of countries, including South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri Lanka, Kenya, Tanzania, United Arab Emirates and Nepal. J.K. Wall Putty: - J.k wall putty is white cement based putty for luxurious and silky interior and exterior finish of your dream home. JK Wall Putty is White Cement based putty for cement plastered walls and ceilings. J.K. Wall Putty is used to fill the uneven surfaces of cement plastered walls and concrete walls. Application of J.K. Wall putty provides smooth and strong finish to the walls for further application of all kinds of paints. The smooth finish gives better look to interiors and exteriors.

Surface Preparation:-The surface should be cleaned to make it free from dirt, dust, grease, oil and paint. All foreign impurities should be removed with a wire-brush. Wall surfaces should be cured so that the surface is saturated with water yet in touch dry condition. Treatment of New Surface:-The new surface requires only soft treatment such as removal of dust, dirt and foreign matter. In case of cracks, voids and damages; it should be patched up prior to application of J. K. Wall Putty with grey/white cement. Treatment of Old Surface:-All loose material and/ or organic growth must be removed with Putty blade or brush. In case of old painted surface scrub the surface with coarse emery stone/paper. Preparation of J.K. Wall Putty Paste:-J. K. Wall Putty is a fine powder. Mix slowly J. K. Wall Putty with approx. 40% water by volume to prepare paste of desired consistency. Mix vigorously for 5-10 minutes for making lump free, uniform and smooth putty paste. Product should be mixed in required quantities to be used within 2-3 hrs of its preparation. Application:-Apply uniformly the first coat of J.K. Wall Putty with blade/trowel on the wall from bottom to top. Apply second coat after the first coat has dried completely. Limit the total thickness of 2 coats to 1.5 mm. Allow complete drying and then use fine emery paper to remove the application mark if any. Any kind of paint can be applied on this surface. Use water for curing before applying paint. Precaution:-Although J.K. Wall Putty does not contain any toxic material, use rubber gloves while mixing, as prolonged exposure with water may soften the skin resulting in fine cuts/legions due to cement particles. Precaution should be taken to avoid dust inhalation while handling the powder putty. Storage:-Store J.K. Wall Putty in a dry place and open the pack just before use. Keep out of reach of children. Comparison Between J.K. Wall Putty and Traditional Putty Properties Binding Property J.K. Wall Putty Traditional Putty

Due to only chalk J.K. Wall Putty is white cement based putty. powder, it has very less Hence it possesses good binding property. binding property. Due to its cement base, J.K. Wall Putty becomes an integral part of plaster and hence more durable. J.K. Wall Putty covers more surface area exceeding 20 Sq. ft./kg. In 2 coats on a new plastered wall. J.K. Wall Putty resists dampness. Less durable

Durability

Coverage Area Water Resistance Flaking Consumption of Paint Primer Coat Appearance

Covers less surface area.

Does not resist dampness. Flaking occurs when it comes in contact with water. Requires more paint due to high absorption. Primer coat is must. Appearance is yellowish.

No Flaking. J.K. Wall Putty requires less paint due to low absorption. No primer coat is required. Better appearance due to very high

whiteness of Putty. NCCBM certifies 93% whiteness. Pigmentation Less pigment consumption yet bright colours. Consistency in quality as it is made under stringent quality control with tested ingredients under one roof at company premises. Ultimate cost is less due to (a) Long life span (b) No Primer cost (c) Less paint consumption & (d) No use Of enamel & varnish while preparing putty paste. High pigmentation. Consumption yet dull colours.

Consistency

No consistency.

Cost

Ultimate cost is more.

Advantages over Plaster of Paris (POP) 1. White cement based product therefore strength is more than gypsum based POP. 2. J.K. Wall Putty can be applied on exteriors/exposed surfaces whereas the same is not possible with POP. 3. J.K. Wall Putty is very white in appearance while POP is yellowish. 4. In case of J.K. Wall Putty no primer is required before painting, whereas it is compulsory for POP surfaces. 5. J.K. Wall Putty resists seepage while POP does not. J.K. Water Proof :- JK Water proof is another product from JK Cements Ltd. which is ISI approved. Its a water repellent material in powder form which specially formulated and designed to prevent passage of water through pore and capillaries of the concrete, thereby imparting to concrete an efficient, dependable and durable water proofing protection against rain, ground water, moisture, dampness, humidity etc. JK Water proof is free from chlorides and is based on material which disperses rapidly and makes a homogenous mix with cement. It conforms with IS: 2645-1975 (Reaffirmed 1987). It has different application. To protect from seepage. Grey cement:- Company also produce grey cement. Grey cement produced by us consists of Ordinary Portland Cement (OPC) and Portland Pozzolana Cement (PPC). OPC has three principal grades that are differentiated by their compressive strengths, and consist of 53-grade, 43-grade and 33-grade OPC.

Product Profile:-J.K. White Cement is made of high quality Lime Stone whose saturation factor is 90%. Following chart shows the characteristics of J.K. White Cement with respect to IS: 8042-1989 requirements. Characteristics CHEMICAL (a) Insoluble Residue (b) Iron Oxide % (c) Magnesium Oxide % (d) Sulphur Trioxide % (e) Iron Ratio (f) Lime Saturation factor PHYSICAL (a) Degree of Whiteness % (b) Fineness, Blaine (M 2/Kg) (c) Setting Time (minutes) Initial Final (d) Compressive Strength (MPa) 3 days 7days 28 days Application of J.K white cement AVENUES:FOR:1- Decorative Process 2- Protective Process 3- Structural Purpose 4- Architecture Purpose IN:1- White Colour 2- Light Colour 3- Medium Colure 4- Dark Colour AS:1- Mortor 2- Plastic 3- Concrete 4- Precast Component 5- Finished Article Manufacturing process of white cement:- The production process for cement consists of drying, grinding and mixing limestone and additives like bauxite and iron ore into a powder known as raw meal. The raw meal is then heated and burned in a pre-heater and kiln and then cooled in an air cooling system to form a semi-finished product, known as a clinker. Clinker (95%) is cooled by air and subsequently ground with gypsum (5%) to form Ordinary Portland Cement (OPC). Other forms of cement require increased blending with other raw materials. Blending of clinker with other materials helps impart key characteristics to cement, which eventually govern its end use. There are two general processes for producing clinker and cement in India : a dry process and a wet process. IS :8042-1989 Requirements Max 2.0 Max 1.0 Max 6.0 Max 3.0 Min 0.66 0.66 to 1.02 J.K. Average Test Result Values 1.70 0.35 2.97 2.24 10.00 0.95

Min 70 Min 225 Min 30 Max 600 Min 14.4 Min 19.8 Min 29.7

87-88 410 60 135 35.0 40.0 55.0

The basic differences between these processes are the form in which the raw meal is fed into the kiln, and the amount of energy consumed in each of the processes. In the dry process, the raw meal is fed into the kiln in the form of a dry powder resulting in energy saving, whereas in the wet process the raw meal is fed into the kiln in the form of slurry. There is also a semi-dry process, which consumes more energy than the dry process but lesser than the wet process. Dry process:- The basic steps involved in the production process is set out below: All J.K. Cement plants are dry process plants. Limestone is crushed to a uniform and usable size, blended with certain additives (such as iron ore and bauxite) and discharged on a vertical roller mill, where the raw materials are ground to fine powder. An electrostatic precipitator dedusts the raw mill gases and collects the raw meal for a series of further stages of blending. The homogenized raw meal thus extracted is pumped to the top of a preheater by air lift pumps. In the preheaters the material is heated to 750C. Subsequently, the raw meal undergoes a process of calcination in a precalcinator (in which the carbonates present are reduced to oxides) and is then fed to the kiln. The remaining calcination and clinkerization reactions are completed in the kiln where the temperature is raised to between 1,450C and 1,500C. The clinker formed is cooled and conveyed to the clinker silo from where it is extracted and transported to the cement mills for producing cement. For producing OPC, clinker and gypsum are used and for producing Portland [Pozzolana] Cement (PPC), clinker, gypsum and fly ash are used. In the production of Portland Blast Furnace Stag Cement (PSC), granulated blast furnace slag from steel plants is added to clinker. Production Process:-

Plant: - Company manufactures grey cement in two facilities located at Nimbahera and Mangrol in the state of Rajasthan in Northern India. White cement is produced at our facility at Gotan in the state of Rajasthan. Our plants have obtained many accolades and recognition, the most noteworthy being : ISO9001:2000 QMS and ISO-14001:2004 EMS for the grey cement facility at Nimbahera and ISO-9001:2000 QMS, ISO-14001:1998 EMS & OHSAS-18001:2005 Occupational Health and Safety for the white cement facility at Gotan. The construction of our first most modern dry cement plant began in 1970 in Nimbahera in Rajasthan. The following table shows a breakdown of production of the Nimbahera, Mangrol and Gotan cement facilities for the periods indicated.

PRODUCTION (IN METRIC TONS)

Fiscal 2004 Fiscal 2005 Fiscal 2006 Six months ended September 30, 2007 1,256,942 493,211 99,343

Nimbahera Mangrol Gotan

2,323,283 570,464 200,149

2,272,760 718,572 215,538

2,414,196 912,419 224,481

Gotan Unit (White cement):- Commenced commercial production in 1984 with an initial capacity of 0.05 MnTPA. Constant up-gradation and modernization, especially in the year 2000, saw the installed capacity rise to 0.21MnTPA. The increase in demand for this product and focus on installed capacity backed by state-of-the-art technology, has taken its installed capacity to 0.3 MnTPA. Capacity utilization of around -75%. Operating profit: 30% consistently. Recognition: ISO-9001:2000 QMS, ISO-14001:1998 EMS & OHSAS-18001:2005.

Location: Gotan, Rajasthan Nimbahera Unit:- Commenced commercial production in 1975 with an intial capacity of 0.3 MnTPA. In the year 1979, second production line was added to enhance the production capacity to 0.72 MnTPA. 1982 witnessed the incorporation of another production line taking the production capacity to 1.14MnTPA. In 1988 a pre-calciner was installed and the production capacity touched 1.54 MnTPA. Constant modernization and up gradation was instrumental in bringing the plant to its present capacity of 2.8 MnTPA. Capacity utilization of around 90%can produce Up to 3.1 MnTPA with production of silicate cement on capacity of 2.8 MnTPA. Recognition: ISO-9001:2000 QMS, ISO-14001:2004 EMS.

Location: Chanderia cluster, Rajasthan Mangrol Unit (grey cement):- Commenced commercial production in Dec2005 with a capacity of 0.75 MnTPA. Its close to Nimbahera plant (10 kms away) offers it significant synergy benefits like assistance from technical and commercial staff of Nimbahera Complex. Additional grinding facility of 0.25 MnTPA

Location: Chanderia cluster, Rajasthan

Facilities:Product Grey cement Location Nimbahera Mangrol Gotan Mudhol Gotan Bamania Nimbahera Nimbahera Gotan Mudhol Capacity (MTPA) 3.25 0.75 0.50* 3.00* 0.40 15.00 MW 20.00 MW (Coal-based) 13.20 MW (Waste Heat Recovery) 07.50 MW (Coal-based)* 50.00 MW (Coal-based)*

White cement Power

CUSTOMER TECHNICAL SERVICE:-Company have 30 years of experience in the Indian

cement industry, which we believe provides us with the skills to maximize production efficiency, expand production capacity quickly and reduce costs. Over the years, company believes that company has developed long-term customer relationships and a strong reputation for quality. In addition, company have a proven track record of upgrading and modernizing his production capabilities efficiently, having increased its production capacity at Nimbahera by more than 80%, from 1.54 million tons in 1998 to 2.8 million tons as of September 30, 2005. Further, company have a stable and experienced middle and senior level management team, many of whom have been working in its cement operations for more than 20 years. Company Nimbahera manufacturing facility was chosen by the World Bank and the Danish International Development Agency as one of the four training centers in India to serve as the Regional Training Center for Northern India. There are only four regional training centers for the cement industry in India, and company believe its operation of the training center provides us with access to state of art training aids, live working models, and technical expertise developed by well known national and international cement producers. Established since commencement of production, CTS provides technical assistance to customers in several of J.k white cement.Comapny offered various type of service to their customer and dealer and company also setup the service station in all over India. Company also provides help line number which really help the customer and dealer for better use of J.K cement product. Companies also setup the head office of the technical service in Ashok Nagar, Rajasthan. CTS officers are stationed across for promote technical services. Company setup 51 CTS offices in all over India which is present at least three in a state. We provide the following services:Specialty of Executives Experience Nearness to you Speaking to you Specialty of Service Before purchase Before application During application

In order to reach our valued customers individually / collectively we organized fallowing events. Technical service offered: CSM- Counter service meet- in this activity company organized a show at stockiest counter to increase the brand awareness and to respond to all sales related & technical problem faced by consumer during the construction of their house. DOA- Demonstration of application- this service offers for trained and experienced application Engineer/ supervisor/ masons and painter to give demonstration of specialized application of variety of cement to customer. MTW-Masons technical workshop- it is conducted for masons throughout India for knowledge transfer of specialized application related to construction activity. PAS- Product application seminar- company officers interact with the group of Architects/ engineer & Industrial consumers for innovation and new application. Company jointly work with them to integrate these applications in to their projects. PTW- Painter technical workshop- Its conducted to develop specialized application awareness amongst painter about J.K wall putty , cement paint & white washing with white cement application. SDA- Stockiest & dealer awareness application- In this service company gives the basic information about its products, literature, packaging & trade policy to its registered dealer and stockiest. EAA- External application agency recommendation to customer EXH- Exhibition for application interaction. ICC- Industrial client contact to solve their problem LIT- Literature based on application R&D. RCC- Rural customer contracts UCC- Urban consumer contract CSW- Contractors and supervisors workshop DIP - Downstream industry promotion for technical and managerial help to industry.

Reliable and Prompt Technical Service:-Company has also got one department named CTS department (Customer Technical Service Department), who has got their engineers all over India. Trained technical officers are posted in all major towns of India for any technical assistance or help such as: Demonstration of Application. Conducting masons Technical Workshops. Conducting Product Application Seminars. Contact Housing Users to solve their problems. Distribution of Technical Literature. Trouble-Shooting of clients constructions problems. Technical Literature:-J.K. White has developed technical literature in almost all Indian languages for ensuring paper and economic application of J.K. White Cement. It is designed on the basis of Research & Development so that benefits of developing White Cement Application Technology by the company reaches to all strata are of our clientele. Regional trainig center:- Over the years, we have developed long-term customer relationships and a strong reputation for quality. In addition, we have a proven track record of upgrading and modernizing our production capabilities efficiently, having increased our production capacity at Nimbahera by more than 80%, from 1.54 million tons in 1998 to 2.8 million tons as of September 30, 2005.We have a stable and

experienced middle and senior level management team, many of whom have been working in our cement operation for more than 25 years.

Regional trainig center

CHAPTER 5:- ADVERTISING AND SALES PROMOTION TECHNIQUE OF THE COMPANY

As we know that advertising and sales promotion technique is key element for succession of the any product and brand. Company is well known brand name in north and south and its one of largest manufacturing of white cement in India and it also hold the no. one position in north India in white cement industry and it maintain its strength from 25 years because it spend huge amount in advertising in form holding, wall painting, print media and electronic media. Company show very consciousness in the choosing media class and sub class. Company also adopted attractive strategy which attracts the dealer and attracting pricing strategy and scheme for consumer. And company makes a marketing strategy which considers the entire factor such as dealer, distributer and its final consumer. Marketing strategy of J.K white cement:- we shall profile the cement sector and j.k cements standing within the industry by applying Michael Porter analysis. Entry barriers (Medium): - Cement manufacturing is a capital- intensive business requiring large infusion of capital for its setup. To put things in prospective, to set up a cement plant, Rs 3,500 per ton of investment is required thus high capital investment in itself is a big deterrent or entry barrier. Moreover, huge distribution network is required to ensure timely availability of the product now a days, captive power has become a necessity to ensure smooth functioning. Thus setting up power plants for captive purposes indirectly calls for the availability of coal linkage issue, which may also act as a hindrance. Access to limestone reserve (principal raw material for the manufacturing of white cement) also acts as a significant entry barrier. The sector operates with high level of fixed cost (maintenance cost is around US$ 5 per ton annually) and therefore volume growth is critical. Thus fixed cost and captive- intensive nature of the industry and the need for a big distribution network are the real entry barriers. Recently, backward integration among non-cement manufacture has also gathered pace. For backward integration, there exists two reason- one being use of big slag (slag is a waste material of steel manufacture companies used in cement manufacturing) and the second cash on the tight demand supply distribution. Intensity of Rivalry (Medium to High): - apart from capital- intensive nature of the industry, access the raw material (limestone and coal) and end user market are equally important factor for long term perspective. That away, JK cement presence in northern region is justified. By being in north, it has access to key raw material- limestone. Primary input such as limestone availability has led to cluster formation, which has resulted in competition on a regional basis. However, with the advent of split grinding units and RMC (ready mixed concrete) concept, catering to nearby regional demand has become easy. Further, the infrastructural activities planned by the government have created heightened demand for cement. Owing to this factor, players have started venturing in to newer regions to create a pan India presence. Thus, in such markets strong distribution network is must. Now a day, to differentiate their product, companies have started Brand building exercise. JK cements brands- JK white cement, JK water proof, JK wall putty are well recognized in the northern region and it being one of the largest manufacture of white cement in India. Its enjoys high brand recall and has emerged as a preferred choice of retailer as well as institution and other companies who make bulk purchase for their ongoing project. Availability of the substitute (Low):- though on a minuscule basis, bitumen in road and engineering plastic in building offer some element of competition, cement is an indispensable part of any construction activity. Cement being a commodity. There is no differentiation to speak of between the basic products. Although branding is gaining momentum, its still the timely availability thats sets apart the performance of the company. JK cement caster to more than 1400 industrial consumer Its distribution channel is extensive with 64 ware house 4000 retailers network and marketing team of 79 member of white cement and101 member of grey cement.

Bargaining power of buyers (Medium):- As there is no substitute for the commodity the bargaining power of buyers should be low, however, owing to increased competition and cyclical nature of the product, buyers of the product do have option. The grey cement segment is more crowed as compared to white cement, which leads to heightened competition. On the other hand, white cement segmented is dominated by a chunk of player. Owing to this, the company product in the grey cement segment are competitively priced, while white cement segmented on account negligible competition, provides cushion to the company margins and also helps to boost them. Bargaining power of suppliers (Low to Medium):- There is no substitute for key raw material, limestone to manufacture cement. Licensing of the limestone and coal reserve, supply of power from the state grid availability of railway for transport are all controlled by a single entity, which is the government, However, these days producer are relying on the captive power, but the shortage of coal and rising fuel price remain concern. In term of securing raw material, JK cement is well placed as its current limestone reserve can support current as well as planned capacity (9 MTPA by FY 09) over the next 40 years. However, currently the company sources its power requirement from the state electricity board, the cost of which is considerably High. To negate this, the company is setting up a waste recovery plant and petcock plant to meet energy requirements which in turn will arrest cost pressure on margins. With volume growth remaining strong and prices firm, many players have entered this sector to explore the available opportunities. With the boom in housing sector and infrastructural activities, every player has lined up expansion or modernization plans to cater to the incremental demand. MNCs have also been eyeing the emerging markets. Few global major such as Holcim and Heidelberg have opted the inorganic away, while Lafarge is exploring organic route. Like other domestic and global players, JK cement has also lined up capacity expansion plans to maintain and the improve its market share and strength its position. Since cement is a regional play on account of its high fright costs the company should not have all its plants concreted in to one region. It should have a geographical spread so that adverse market condition in one region can be mitigated by high growth in the other region. Marketing concept of company :- business philosophy has experienced three major shift during the history of commerce in the United state. It has moved from a production orientation to a sales orientation to the current consumer orientation. Each of this philosophy has reflected the economic environment of its time. From the early years of the country in to the late 1920s, businesses had limited production capacity and continuous demand for their products, under those circumstances; it was inevitable that the prevailing philosophy would be produce as much as you can and it will sell. Business goals based on that belief naturally focused on production. Marketing concerns were limited to order taking and product distribution. With the introduction of mass production in the late 1800s. The gap between production and the demand for goods and services began to narrow. By the 1930s, production capacity had caught up with and, in many areas exceeded demand. In order to maintain or regain production and sales levels, business adopted sales oriented philosophy. This philosophy held that if you do enough advertising, promotional activity and direct selling, you can persuade the market to buy all of your output. Initially companies capitalized on the emergence of the radio as an advertising vehicles and the employment of large sales forces to reach prospective customer in new market. In the 1940s the introduction of television enabled them to expand sales effort even further. After the end of the World War II (1939-1945), two forces combine ato crate an explosion in demand of goods and services. One was the pent up demand for product resulting from wartime shortage. The other was the enormous added demand generated by the return GIs who were establishing new homes and families. The spending boom caused by these forces was sustained by the baby boom and increased the standard of living that fallowed. At the same time, war time production capacity and technology developments were shifted to civilian applications, production continue to increase, and new venture were formed to take advantage of the opportunity.

The net result of all this economic activity was heavy competition for the consumer dollar. Business came to quickly realized that if they are going to get their share of those dollors, they were going to have to become more consumer- oriented. This change in the philosophy become knowns as marketing concept. Although this philosophy taking shape for nearly seven years. It was not articulated until it appeared in the 1952 annual report. One widely used definition evolving from the reports description is an organization- wide consumer orientation with the objective of achieving long range of profitability. As the definition implies, there are three parts of the marketing concept. They are... 1- A customer focus:- the marketing concept being with the premise that the starting point for business decision is the customer needs and wants. Those needs and wants are carefully researched and thoroughly analyzed. Then, goods and services are identified or developed to satisfy them. In many cases, a consumer stated needs and desire are limited by a very narrow perception of what is possible. Firm often need to determine what futuristic products and service would satisfy latent need and wants of which consumer are not yet aware. Many popular products such as IPod, cell phones with camera and signing birthday card were not envisioned by consumer 20years ago. To successful implement of the marketing concept an organization must search the short- term desire and long term needs and wants of their potential consumer. 2-long- term organization success:- the marketing concept dictates that goods and services made available by a business must be produced and marketed so as to meet the long- term goals of the organization. In most business this would include the profit objective that is integral of the survival and growth of a business. Without it, the business would not be available to serve the needs and wants of the consumer. Other objective, however, may include market share, sales growth or new product success. Many successful nonprofit organizations, such as the Red Cross, effectively use the marketing concept. 3- A total company effort:- effectively implementation of the marketing concept requires involvement of the employees from all department at all level of the business. Training must be provided and employees must be motivated to achieve the common goals of maximum customer satisfaction and the long term organization objective. Executing the marketing and advertising strategy: - Businesses that have embraced the marketing concept have found that this concept has had a strong impact on sales. They have also found that, in many respects, this concept has changed the way they operate. Most of the changes in management practices have been related to changes in thinking inherent in the marketing concept. These include making decision on the basis of customer needs and wants instead of production schedule and sales goals, Encouraging every employee to take an active interest in all aspect of the business and focusing managers to think through what they are going to do and their reason for doing it. Changes in marketing activities that have occurred under the concept involve both marketing strategy and marketing function. Market research has become a prominent tool to data gathering and determining customer needs and wants and to provide feedback on company performances are used more effectively. Special attention has been paid to product quality and to tailoring to services as well as products, to customer preferences. The customers interest has been designated as the first priority in all marketing activities. In selling for example, helping the customer has been given greater emphasis than getting the sales. In addition the search for innovative away to reach and serve the customer has been ongoing enterprise. Changes in production brought about by use of the marketing concept, such as closely controlled inventories, have centered on efficiency , changes in operation, such as extended hours and immediate delivery, have focused on convenient products availability. Additional changes in business practices have been aimed at cost control to give customer maximum value for the price to pay. A growing interest in the societal marketing concept recognizes the possible conflict between short term customer wants and the longrun welfare of consumer and society. Lawsuits against the tobacco industry and in some cases, the fast food industry, along with the other firms, demonstrate this conflict. Although these firm were satisfying the wants of consumer at that time, the long-term harmful result of using the products on those consumer and society have caused many to promote the societal marketing concept. This concept

is based on satisfying consumers need and wants in a manner that would also maintain or improve the long-term welfare of the consumer as well as the well being of the society. Sales promotion technique with 7Ps of marketing:- once company developed marketing strategy in the new market or existing market then company should used 7 Ps Formula to continually evaluate and reevaluated the their business activity. As products, market and consumer needs change rapidly, you must continually revisit these 7Ps to make sure sales department on track and achieving the maximum results possible for you in today market place. Products:- To began with, develop the habit of looking at your product as trough you were an outside marketing consultant brought in to help its company decided whether or nots its in the right business at this time . Ask critical question such as, Is your current product or service or mix of products and services, appropriate and suitable for the market and the customer of today? Whenever youre having difficulty selling as much of your products or services as youd like, you need to develop the habit of assessing your business honesty and asking, Are these right products or services for our customers today? Price:- The second P of this formula is price. Develop the habit of continually examining and reexamining the price of the product and services. Company sells to make sure theyre still appropriate to the retailers of the current market. Sometime company needs to lower its price and some time it may be raised the price. Many companies have found the profitability of certain product and services do not justify the amount of effort and resources that go in to producing them. By raising their prices, they may lose a percentage of their customer, but the remaining percentage generates a profit on every sales. Promotion: - The third element in marketing mix is promotion. Some time you need to change your term and condition of sales, sometime by spreading your price over a series of months or years. Company can sell far more than you are today, and the interest you can charge will more than make up for the delay in cash receipts. Sometime company combines the products and service together with special offers and special promotion. Sometime company can include free additional item that cost you very little to produce but make its prices appear for more attractive to its customer. Place: - The forth element in marketing mix is place. In business as in nature, whenever you experience resistance or frustration in any part of its sales or marketing activities, be open to revisiting the area. Be open to the possibility that your current pricing structure is not ideal for the current market. Be open to the need to revise its prices, if necessary to remain competitive , to survive and in each case, the entrepreneur must make the right choice about the very best location or place for the customer to receive essential buying information on the product or services needed to make a buying decision. Packaging: - The fifth element in marketing mix is packaging. Company developed the habit of standing back and looking at every visual element in the packaging of their product or service through the eyes of critical prospects. Remember, people from their first impression about it are within the first 30 seconds pf seeing its or some element of its company. Small improvement in the packaging or external appearance of its product or service can often lead to completely different reaction from their customer. With regard to the packaging of company product and services. Company should think in term of everything that the customer sees from the first moment of contact with its company all the away through the purchasing process. Packaging refers to way its product and service appears from the outside. Packaging also refers to its people and how they dress and groom. It refers to its offices, its waiting rooms, its brochures and its correspondence and every single visual element about its company. Positioning: - The next P is positioning. Company should develop the habit of thinking continually about how you are positioned in the heart and minds of customers. How do people think and talk about you when youre not present? How do people think and talk about your company? What positioning do you have in your market, in term of specific words people use when they describe you and your offering to others?

In the famous book by Al Reis and Jack Trout, Positioning, the author point out that how you are seen and thought about your customer is the critical determinate of its success in competitive marketplace. Attribution theory says that most customer think of you in terms of single attribute, either positive or negative. Sometimes its service and sometime its excellence. company developed the habit of thinking about how are you could improve your positioning. People: - The final P of the marketing mix is People. Company developed the habit of thinking in term of people inside and outside of your business who are responsible for every element of your sales and marketing strategy and activities. Its amazing how many entrepreneur and businesspeople will work extremely hard to think through every element of the marketing strategy and the marketing mix, and then pay little attention to the fact that every single decision and policy has to be carried out by a specific person, in a specific away. Your ability to select, recruit, hire and retain the proper people, with the skill and abilities to do the job you need to have done, is more important than everything else put together.

Consumer Based Brand Equity model of J.k white cement: - Company positioning their
brand JK white cement as The Perfect White Cement. JK white cement operations began in the year 1984 at Gotan, Rajasthan, India. Today the plant produces 250,000 tons per annum of The Perfect International White Cement. J.K white cement works incorporates the technical expertise of F.L Smidth & Co. Denmark, Worlds leaders in white cement technology. The plant has pioneered process and quality control systems in white cement manufacturing that are unique and consistent. State-of-the-art-technology with continuous on-line control by micro processors & X-rays ensure that only the purest white cement is produced. BRAND SALIENCE:- Brand salience measures awareness of brand. Brand Salience refers to the depth and breadth of brand awareness. While depth talks about how easily the brand is recalled. Breadth talks about the range of purchase and usage situations that this brand has been recalled. Depth of Brand Awareness:- When customer go for the construction or repair or for white wash of his house and also he want to decorate his kitchen, bathrooms etc with tiles or marble the first thing In his mind is that the it will provide me light and brightness in the rooms. Then he just go for white colour. This whiteness is what he need and also a strong material. J.K. White cements the only name customer remember that that time, although there is other brand which is very popular i.e. Birla white cement. But the recall value of J.K. White cement is more. And also the tag line which customer remember when he think of whiteness i.e. J.K. White Cement- the Perfect White Cement. It is easily recognized by its brand elements be it its logo and its punch line. J.K. Breadth of Brand Awareness: - Customer easily recalls J.K. White cement whenever I think of White Cement. J.K. White Cement in India positioned itself as quality premium cement. The punch line is also very catchy The Perfect White Cement and the ad campaign is also very catchy Apni Kalpanaao ko saakaar kijiye. In India J.K positioned it in the rich and upper middle-class customers but to reach middle and lower class customers j.k launched the cement in small packets of 1kg, 5kg, 10kg. Brand Performance: - Brand performance describes how well this brand provides the basic functions of the product or service category. And many questions arise in my mind like: To what extent does this brand have special features? How reliable is this brand? How effective is this brands servicedoes it completely satisfy your requirement? Compared to other brands in the category in which it competes, are this brands prices generally higher, lower, or about the same J.K. White Cement is a reputed brand and globally accepted for its quality and whiteness, silky finish and magical strength. J.K. White Cement has always emphasis on "Quality, Availability and value of product". It has high-quality because it consistently satisfies customer requirements. J.K white cement is consistent in its quality and its features like silky finish and strength. I found that J.K. reached to every place in India and also in different pack sizes. Apart from this J.K. cement introduced the paper packing for white cement to prevent it from moisture content. So, It will give me assurance regarding the quality. J.K. white cement introduce some schemes to provide discounts, they put the plastic coins in the cement bag with exchange of that the shopkeeper give the

money. This is again; give me a feeling of discount on their part. The company provide the details information on the pack that how to use effectively this cement. J.K. continuously innovates its products according to the changing preferences customers for example J.K. white putty, J.K. water proof etc. . . . Brand Imagery: - Brand Imagery refers, how do you describe this brand? To what extent do people you admire and respect use this brand? Can you buy this brand in a lot of places? This also refers to intangible aspects of the brand such as User Profiles, purchase and usage situations, personality and values, history, heritage, and experiences. Following are some of the brand imagery features of J.K. White Cement:

It means the J.k. white cement is most popular brand in the area of construction. When customer goes for the white cement purchase then the first name that customer think is J.K. White cement. If customer has to repair my wash basin and filling the gaps between tiles then customer purchase this cement because he have faith on its strength and finishing. As a brand customer imagine this as a premium and quality. The company has an experience of over 30 years in the field of cement.

The brand personality of J.K. white cement depicts whiteness, silky finish and strength. The Usage of white cement is in different areas like tiles, painting, marble, roof proofing and making designs on roof etc... I can say that it is used at every construction site. Brand Judgements: - Brand Judgments are customers personal opinions about the brand, it also asks about your assessment of the product quality of this brand among other brands. To what extent does this brand fully satisfy your product needs? Does this brand offer good value? I as a customer value J.K. White cement is a premium and quality brand. It is also changes as per market requirement. It has strength and has silky finish also. I am confident that this material is reliable and durable and I get value if I spend money on this. Brand Feelings: - J.K white cement gives a feel of trust, durability, reliability and strength. Apart from this, it also gives a feeling of coolness because of the whiteness. It depicts the cleanliness and brightness. It is also very silky in nature that is necessary for the finishing. The symbol we see shows the strength in it as customer see the characters are broad. J.K. white cement always be with the customers and available easily so, its in the reach of every person. The companys image also reflects if we find that company also thinks for customer, this trust generated with introducing new packaging in market. Brand Resonance: - Brand Resonance describes the extent to which customers feel that they are in sync with the brand. J.K white cement has successfully established in the Indian market especially in northern region. J.K agencies and distribution centres are all around the country which proves customer loyalty to this brand. J.K white cement seems to relate with feelings of the customers because in festivals like Diwali people used to white wash their homes. Customers see this brand as strength, trust, durable and reliable and the brand that respects their values. J.K. white cement also organise events for public awareness regarding use of cements and also do social services for the welfare of the society that creates a sense of community and active engagement with the society. Company adopted different type of advertising and sales promotion technique: - There are various type of sales promotion and advertising strategy adopted by the company but some major sales promotion technique is describe below. Wall Painting: - Company huge finance invests in the wall painting for promotion of its product and services. TV adds: - Company knows that it have grate competition with Birla so company huge finance in advertising in electronic media.

Outdoor Advertising: - Company also advertised their product and services through outdoor media such as glow shine for creating and reminds the customer. After sales service:-Company also provided the free training after the selling of the products for the better use of the product which is a very strong sales promotion technique. Mode of Advertisement:- Company knows that advertising is the very important tool of the succession of any product and service so company invest all the media and media sub class to compete the competitior product and services. Following chart shows the percentage of investment is made in different media class.

Mode of Advertisement
WALL PAINTINGS 15% COMPLEME NTARY GIFTS 22% NEWS PAPER 16% T/V Ads. 35%

GLOW SIGN BOARDS 12%

CHAPTER 6:- MARKET STRUCTURE AND DISTRIBUTION CHANNEL

POSITIONING OF THE MARKETING DEPARTMENT:- Marketing plays a vital role in
the success of any organization. After making an investigation of demand and customer preference J.K. White Cement has divided its distribution network into four zones: East Zone West Zone North Zone South Zone

These zones are governed by zonal offices. Zones which have a wide range of distribution network zones have been fixed according to the number of stockiest in the various cities of zones. Companys head office is at Delhi decides the monthly target of various zones and they further distribute sales target to the various stockiest who procure the cement by placing their order at the corporate office of the company. The stockiest places the order by using the order form in which they give complete details of the quantity and the type of packing they require. At the time of allotment the company accepts the security deposits from the stockiest, which varies according to the various cities. They have divided the cities in to four classes A, B, C and D and security deposit varies accordingly. All the reports and accounting work is carried out by the zonal office as well as the Head Office. The marketing department of the respective zones performs the job of collecting payment from various stockiest. Key Market Area:-

Key Market Segment

19%

21% Rajasthan Haryana Delhi & U.P

27% 33%

Punjab, M.P & Gujrat

Location of the marketing department:WEST ZONE:-This zone is governed by the Regional Manager (West) from Mumbai. They have Marketing Executives in the fallowing places:1) 2) 3) 4) 5) 6) 7) Mumbai Pune Indore Nagpur Nasik Akola Jabalpur

NORTH ZONE:-Marketing Manager, Delhi reporting to Vice President Marketing, governs this zone. The companies have their executives in the fallowing places:1) Delhi 2) Chandigarh 3) Ghaziabad CENTRAL ZONE:-This zone is governed from the Head Office, Kanpur by an Assistant Marketing Manager. They have appointed Marketing Executives in the fallowing places:1) 2) 3) 4) 5) Head Office Eastern U.P. Ghaziabad Agra Gwalior

SOUTH ZONE:-The Area Marketing Manager governs this zone at Bangalore. J.K. White Cement has its Executives in the fallowing places:1) 2) 3) 4) 5) 6) Madurai Coimbatore Chennai Cochin Hyderabad Belgaum

EAST ZONE:-In this Zone the Marketing Executives are placed in the fallowing places :1) 2) 3) 4) Kolkata Ranchi Patna Guwahati

RAJASTHAN:- This state is directly monitored & governs by Gotan Works. 1) Gotan 2) Jaipur 3) Ne much DISTRIBUTION CHANNEL:-The concept of marketing channel has been defined as the route taken by products as they move from the producer to the consumer. The middlemen may focus on different middlemen needed to get the product to the ultimate consumer. When a marketing manager sets out to distribute his white cement in a market, he formulates his distribution objectives to achieve those objectives, some distribution tasks need to be perforation. Efficient and effective performance of these tasks calls for the channel members who can perform them with differential advantage. The channel design is the development of marketing channel to achieve distribution objectives. Marketing channels are set to interdependent organization involved in the process of making a product or service available for the use or consumption. There are two types of marketing channels used in White Cement Industry.

AGAINST STOCK TRANSFER:-In this the consignment is sent to the dumps from the factory. The stockists lift the required quantity from the dumps. The retailers purchase the required quantity from the stockist and at last the consumers purchase white cement from the near by retailers. FACTORY

DUMPS

STOCKISTS

RETAILERS

CONSUMERS AGAINST C FORM:- In this process the company collects C form from stockiest or

industrial consumer and required quantity delivered directly from the factory.
FACTORY

Against C Form

STOCKIST

INDUSTRIAL CONSUMER

LIMITATIONS
Certain limitations were experienced at different level during the project study:1. Finding of the study which was done at Kanpur city may not be applicable to other parts of the city may not be applicable to other parts of the country because customer taste, preferences and behavior varies from place to place, depending upon socio-economical and culture background or we can say due to the demographic factors. 2. I found some times difficulty in getting response from the customers due to inherent human tendency or because of lake of time. 3. The unavailability of data from secondary source also proves limitations for me. 4. There is hardly any information about white cement market been found in any magazine, Newspaper etc? 5. Place was a constraint, as only few places were covered. 6. As the sample size was small, so they may be different in regard to the total population. 7. No-response was the serious limitations. 8. There was no measure to check that biased information was not present. 9. Paucity of time with dealer & sub-dealer made them to provide quick information rather than precise information.

CONCLUSION
1. As far as market demand of White Cement is concerned J.K. is ahead of Birla but in case of Wall Putty Birla is on the notch. 2. Awareness level is good for J.K. 3. Price is not a competitive factor because both the brands are coming with same price tag. 4. Major application of white cement is Mosaic Tiles and Terrazzo Flooring. 5. In case of publicity Birla has an upper edge over J.K. 6. Company representative service of Kapoor Marketing (marketing firm of J.K.) is not good Birla is quite good in it. 7. The promotional schemes of J.K. is not seems to be effective. 8. Advertisement in the form of Glow Signs & Hoardings seems to be less effective than personal visits and wall paintings. 9. T/V advertisement is most demanded promotional activity by the respondents. So overall the respondents want that the company should upgrade its marketing style as well as the advertisement budget.

RECOMMEDATIONS
1- The company is advised to spend more an advertisement through proper and effective medium of advertisement. 2-The Company must put hoarding at the most busy place in the city and provide glow sign boards to the dealer and retailer. 3- There should be a regular company executives visits to the dealers. 4- Only one marketing firm and distributor for a big city like Kanpur is not enough it should be increased to 3 to 5. 5- Company should increase the quality of wall putty in terms of Binding Power. 6-Provide incentive schemes to the Dealers and sub-dealers. 7-There should be a gift coupon inside the various packing for the Masons. 8-Company should increase awareness of different application of white cement among people. 9-More aggressive & comparative promotional campaign keeping in focus the only competitor Birla. More emphasis should be laid on TV & News Paper Ads. 10-Company should make changes in its marketing strategy and should appoint a Brand Ambassador for Promotion. 11-Company should organize a monthly interaction with masons/ painters to get them acquainted with the trends and uses of White Cement. 12- Number of meeting with the dealer and retailer must be checked regularly and available programme such as DOA must be held frequently at different location of the city to provide right education to painter / mesons etc. regarding correct application of J.k white cement and wall putty.

BIBLIOGRAPHY
* * * * * * www.Jk-white.com www.indiainfoline.com www.google.co.in C.R. Kothari Research Methodology Philip Kotler - Marketing Management Marketing Research by Boyd and C.L Gupta