Jaypee Business School

A constituent of Jaypee Institute of Information Technology (Deemed University)

A-10, Sector 62, Noida (UP) India 201 307 www.jbs.ac.in

Title

Position of jaypee brand vs competitors & suggestion to improve further in district of Mohali

Corporate Internship Report

Internship Report submitted as a partial requirement for the award of the two year Master of Business Administration Programme MBA 2012-14

Name: Vivek Sharma

(JAYPEE CEMENT)
Corporate Internship Supervisor Name: Mr. Neeraj Chaudhary

JBS faculty Supervisor Name: Dr Vinky Sharma Start Date for Internship: 1 may 2013 End Date for Internship: 15 june 2013

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Acknowledgement

The possibility of the completion of my project was because of the efforts, guidelines and great support of the people around me who were always there to help me whenever I needed them. I hereby express my thanks to Jaiprakash Associates Limited (Cement Division) who gave me an opportunity to do summer training. I would also wish to express my sincere gratitude to Mr.Lalit Gupta, Mr.Neeraj Chaudhary and other staff of Jaypee Cement for giving me support to do the Academic Project effectively. I would also wish to express my thanks to all the respondents who gave me their precious attention. Their ideas, critical insights and suggestions have been invaluable in the preparation of this report. Lastly, I pay my profound regard to my parents and all those whose names are not appearing here for their blessing and support to go ahead in life.

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EXECUTIVE SUMMARY
While working with Jaiprakash Associates during my 6 weeks summer internship I came to know about various aspects of marketing and various process that occurs in marketing/sales department. And I suppose sole aim of marketing is to create satisfied customers and selling more to more number of people, more often at higher prices. The Jaypee Group is an Indian conglomerate based in Noida, India. It was founded by Jaiprakash Gaur which is involved in well diversified infrastructure conglomerate with business interests in Engineering & Construction,Power, Cement, Real Estate, Hospitality, Expressways, Sports & Education (not-for-profit).After getting the opportunity to undergo my 6 weeks summer training in Jaiprakash Associates Ltd. I carried out my project Position of Jaypee cement VS Competitors & suggestion to improve further . I spent the first week in getting knowledge about the company profile, got the product knowledge from companys marketing department followed of various function and knowing how to find the target customer (Dealers, Sub-Dealers& Retailers). The remaining time I spent in studying, analyzing and finding potential for Jaypee cement brand and other competitive brand in the Mohali district segmented market (area wise segmentation).My product was Cement and my aim was to search the Market Potency of particular brand, to find out which brand is most preferable in the market, and develop a strategy to increase the market share. My products cement complies with IS: 8112 -1989 for 43 Grade Ordinary Portland Cement and surpassesIS:1489:1991, the laid down BIS standards for fly ash based PPC cement. Features of my product are: High Compressive Strength and rate of strength gain. The superfine particles of cement provide great finish to the structure. Cement provides unsegregated concrete of better integrity. Impermeable concrete for durable construction. Resistant under aggressive environment even in coastal areas. Resistance to corrosive attack on steel reinforcement. Resistant to lime leaching. Low heat of hydration Crack less construction. Reduces shrinkage and swelling. Beneficial effect on workability due to spherical shape of particles and their high fineness. We categorize target customers by Cement Company as Dealer, Sub-Dealer, and Retailer etc

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During the Industry analysis I have found that in the last ten years cement sector has recorded a CAGR of 8%,against the world cement industry average of 3.5% and Chinas cement industry growth rate of 7.2%. Today this industry not only outshines that of developed countries such as US and Japan but also has become the second largest cement producer in the world after China. The growth of cement industry has been trajectory in fashion over the past ten years. Domestic cement demand growth has surpassed the economic growth rate for the past three years. Cement demand in the country grows at roughly 1.5 times the GDP growth rate. According to CRISIL industry is expected to grow at a CAGR of around 8 percent in the next five years. The key drivers for cement demand are real estate sector, infrastructure and industry expansion projects. Among these real estate sector is the key driver of cement demand. The demand for cement is closely related to the growth in the construction sector. Consequently, cement demand has been posting a healthy growth rate of around 8 per cent since 1997-98, propelled by the increased thrust on infrastructure development, and the higher demand from the housing sector and industrial projects. Cement being a bulky commodity cannot be easily and economically transported over long distances. This makes cement a regional market place, with the nation being divided into five regions. Each region is characterized by its own demand-supply dynamics. With increase in infrastructure development activity with projects such as state and national highways, and global demand has led Indian cement industry to increase their production capacity. This in turn has attracted the top cement companies in the world to enter the Indian market and take the advantage of growth in demand. I have also done detailed financial analysis of Jaiprakash Associated Ltd. to understand the its financial position.Since Jaiprakash Associates Ltd.

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INTRODUCTION & OBJECTIVES

Introduction to Jaiprakash Associates Ltd. The Jaypee group is a Rs. 18,000 crore well diversified infrastructure conglomerate with business interests in Engineering & Construction, Power, Cement, Real Estate, Hospitality, Expressways, Sports & Education (not-for-profit). It is Indias third largest cement producer, the largest private sector hydropower company with 1,700 MW in operation. The Group has successfully completed projects in 18 states of India, and in Bhutan.The Jaypee Group has also been in the limelight after a group staged Indias first Formula One race on October30, 2011 Introduction to Summer Internship Project Todays successful companies share one thing in common: Strong customer oriented approach and strong commitment to marketing.Marketing, more than any other business function, deals with customers. Marketing can be defined as a process to create satisfied customers at minimal cost.In my Summer Internship project I had to develop suggestions for Jaypee cement targeting at increase in market share by understanding the market place environment and delve deeper into market strategies and tactics used by its competitors. Introduction to Internship Report In this report I tried to understand the cement industry on a whole i.e. its structure, political economic, social and technical factors and also how hostile is this Industry for all companies in it.I have done the financial analysis of Jaiprakash Associated Ltd. Objectives To understand the various processes of marketing and sales department and develop marketing strategy for Jaypee cement targeting at increase in market share. To understand the structure of the cement industry. To know how various Political, Economic, Social, and Technological factors affect the cement industry. To know about the strengths & weaknesses of cement sector and the various opportunities and threats present in the industry To do the financial analysis of the company.

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Company Profile
With a single mined focus to pioneer a myriad of feats in civil engineering, Shri Jaiprakash Gaur Ji, the founding father of Jaiprakash Associated Ltd. Acquired a diploma in civil engineering in 1950 from the University of Roorkee.After a stint with government of U.P he branched off on his own, to start as a civil contractor in 1958 with the steadfast determination to contribute in nation building. This has been possible with the active support of his honest colleagues such as Shri S.K.Jain, Shri N.C. Sharma, Shri G.P. Gaur, Shri P.K Jainanad Young Generation Ably Headed By Shri Manoj Gaur And Shri Sunil K. Sharma. Transforming challenges into opportunities has been the hallmark of the Jaypee Group, ever since its inception four decades ago.

The Jaypee group is a Rs. 18,000 crore well diversified infrastructure conglomerate with business interests in Engineering & Construction, Power, Cement, Real Estate, Hospitality, Expressways, Sports & Education (not-for-profit). The Group has always believed in growth with a human face and to fulfill its obligations it has Set upJaiprakash Sewa Sansthan (JSS), a not-for-profit trust which primarily serves the Objectives of socio-economic development, reducing the pain and distress in society For over 4 decades now, Jaypee Group has supported the socio-economic development of the Local environment in which it operates and ensured that the economically and educationally Challenged strata around the work surroundings are also benefited from the Groups growth by Providing education, medical and other facilities for local development. The Group also undertakes Comprehensive Rural Development Programme (CRDP) which Covers a wide range of projects such as free medical camps, health check-ups for village school Children, literacy campaigns like Balwadis for young boys and girls, safe drinking water supply, Creating huge water reservoirs in different villages, self-employment which includes tailoring Classes for women 6|Page

and animal husbandry. Some other important activities undertaken include. The renovation of old temples, other schools and hospital buildings in the adjoining adopted Villages

Today the group is the 3rd largest cement producer in the country .The groups cement facilities Are located in theSatna Cluster (M.P.), which has one of the highest cement production growth Rates in India. The group produces special blend of Portland Pozzolana Cement under the brand Name Jaypee Cement (PPC). Its cement division currently operates modern, computerized Process control cement plants with an aggregate capacity of 22.80MnTPA. The company is in The midst of capacity expansion of its cement business in Northern, Southern, Central,Eastern and Western parts of the country and is slated to be 37.55 MnTPA by FY12 (expected) with Captive Thermal Power plants totaling 672 MW. The company is awarded with "National Safety Award" by the national safety council of India for developing and implementing effective management systems.

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PROMISE We remain committed, as a Group to strategic business Development in infrastructure,as the key to nation building in the 21st century.We aim to achieve perfection in everything we undertake and we have a commitment to excel. It is the determination to transform every challenge into opportunity; to seize every opportunity to ensure growth and to grow with a Human face that drives us. Jaiprakash Gaur Chairman

VISION STATEMENT To be dynamic and vibrant responsive to the changing economic scenario: and flexible enough to absorb Environmental and physical fluctuations. Harness and inherent strength of available human resource and material have a capacity to learn from success and, more than anything else, ensure Growth with human face

MISSION STATEMENT Our solitary Mission is to achieve Excellence in every sector that we operate in - be it Engineering & Construction,Cement, Real Estate or Consultancy. To augment our core competencies and adopt the most comprehensive modern technology to overtake the obstacles in our path of achievement.To obtain sustainable development and simultaneously enhancing the shareholders value and fulfilling our obligations towards building a better India".

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Subsidiaries
The Jaypee Group operates through its various subsidiaries which are engaged in different business segments. Jaiprakash Power Ventures Limited (JPVL) The company with its operational power plants - 300 MW Baspa-II (Himachal Pradesh), 400 MW Vishnuprayag (Uttarakhand) and 1000 MW Karcham-Wangtoo (Himachal Pradesh) is Indias largest Private sector Hydropower producer and is on its way to be an integrated power producer with expansion in Thermal & Power Transmission. Jaypee Arunachal Power Limited (JAPL) The company is setting up two hydropower projects - Lower Siang Project (2700 MW) and the Hirong Project (500 MW) in Joint Venture with the Government of Arunachal Pradesh. Jaypee Power Grid Ltd.(JPL) JPL has been formed for execution of the transmission system between Wangtoo in Kinnaur district of Himachal Pradesh & Abdullapur in Yamuna Nagar district of Haryana for evacuation of 1000 MW power from Karcham Wangtoo HEP in Himachal Pradesh.

Bhilai Jaypee Cement Limited (BJCL) The Clinkerisation Unit of the split-located project of BJCL at Babupur, Satna was successfully commissioned in December 2009. After completion of the project activities of the Grinding Unit at Bhilai, on schedule, despatch of cement from this Unit has started from June 2010.

Gujarat Jaypee Cement & Infrastructure Limited (GJCIL) GJCIL was incorporated as a Joint Venture between Jaiprakash Associates Limited (JAL) and Gujarat Mineral Development Corporation Limited (GMDC), inter-alia, to implement a 2.4 Million tones per annum capacity cement plant in District Kutch, Gujarat. Bokaro Jaypee Cement Limited (BOJCL) BOJCL, the second joint venture between the Company and SAIL with management control vested in the Company, is incorporated to set up a 2.1 MTPA capacity cement plant at Bokaro in Jharkhand. Jaypee Cement Corporation Limited (JCCL) It is proposed to set up an integrated cement plant with a 3.0 Mn tpa cement grinding capacity along with 26 MW captive power plant at Shahabad Distt., Gulbarga, Karnataka. Madhya Pradesh Jaypee Minerals Limited (MPJML) A Joint Venture company between JAL and the Madhya Pradesh State Mining Corporation Limited (MPSMCL) to develop the Amelia (North) Coal block.

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Jaypee Infratech Limited (JIL) A subsidiary of Jaiprakash Associates Ltd. which has undertaken the implementation of prestigious Yamuna Expressway Project comprising of 165 KM, 6 Lane Access Controlled expressway.

Jaypee Ganga Infrastructure Corporation Limited (JGICL) JGICL a wholly owned subsidiary of the Company for implementation of the prestigious 1047 km, long 8-lane Access-Controlled Expressway connecting Greater Noida with Ghazipur- Ballia. Himalayan Expressway Ltd. (HEL) The Company will undertake the construction of Zirakpur-Parwanoo Highway connecting Punjab, Haryana & Himachal Pradesh on BOT basis. The total length of the highway would be 28.690 kms. Jaypee Sports International Ltd. Jaypee Sports International Ltd. is incorporated for developing a Greenfield state-of-the-art Sports Complex including Car Race track for motor sports with related integrated support infrastructure including townships, cricket stadium, go karting track and auxiliary facilities.

Sangam Power Generation Co. Ltd. (SPGCL) SPGCL was incorporated by Uttar Pradesh Power Corporation Limited (UPPCL) for implementation of 3x660 MW Thermal Power Project in Tehsil Karchana of district Allahabad, Uttar Pradesh. Prayagraj Power Generation Co. Ltd. (PPGCL) PPGCL was incorporated by Uttar Pradesh Power Corporation Limited for implementation of 3*660 MW Thermal Power Project (with permission to construct two additional generation units of 660MW each) in Tehsil Bara of District Allahabad, Uttar Pradesh. Jaypee Meghalaya Power Limited (JMPL) JMPL is implementing 270 MW Umngot HE Project in the Umngot river in the State of Meghalaya and 450 MW Kynshi- II Hydro-electric Power Project in the Kynshi River Basin of Meghalaya on BOOT (Build, Own,Operate and Transfer) basis. Jaypee Agra Vikas Ltd. (JAVL) Jaypee Agra Vikas Limited is incorporated as a Special Purpose Vehicle to undertake the work for development of section of Agra Inner Ring Road, with a length of about 20.5 Kms. Jaypee Fertilizers & Industries Limited (JFIL) For investment in Fertilizer business, JFIL was incorporated as wholly owned subsidiary.

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PRODUCTS
Jaypee produces a wide variety of cements, which are specifically designed to cater to the customers requirements for different types of cements in each of its markets. All the brands, which the Company produces,are so evolved in their characteristics and properties that they will surpass BIS Standards. For each brand, the relevant BIS standards are mentioned in enclosed table along with a comparison with the BIS requirement. The state-of-the-art cement plants operated by the Jaypee Group are equipped with the most modern technology from the globally leading technology providers. Extensive Instrumentation & fully automatic and computerized process control system, custom designed Quality Control software like QSO Expert and CADES in the Mines, CrossBelt Expert Analyzer using the Prompt Gamma Neutron Activation Analysis - for the first time in India, X-Ray Fluorescence and X-Ray Diffraction analyzers and optical microscope, enable production of cement of the highest quality consistently on a sustained basis. Jaypee Rewa Plant Quality control laboratory is accredited laboratory from National Accreditation Board for Calibration & Testing Laboratories, for chemical and mechanical Cemen ttesting. All brands are marketed in attractive HDPE bags, containing 50 Kgs of quality cement from Jaypee. Bags are identified with a conspicuous Jaypee Logo, which also over the years has come to be regarded as a Hallmark of quality. Jaypee produces & markets both Portland Pozzolana Cement (PPC) & all grades of Ordinary Portland Cement (OPC). A brief introduction of each brand is enumerated as below:JAYPEE CEMENT (PPC)

Jaypee Cement (PPC) is a market leader among all blended/composite cements in the markets of U.P, Bihar, M.P.,Punjab, Haryana, and Delhi& Nepal. Its unique design and blend, with high strength clinker and superior quality flyash has made it the popular cement for construction of large number of strong and durable structures in thes estates. Qualities of Jaypee Cement PPC Unmatched characteristics of Jaypee Cement (PPC) which form the basis of sound & durable Construction are:

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Better workability due to spherical shape of fly ash particles and better slump retention. Better palpability provides more cohesive concrete and mortar. Superfine particles provide great finish to the structure. Provides un-segregated concrete of better integrity. Low heat of hydration. Reduced shrinkage and swelling. Better pore refinement, reduced permeability. Better resistance to chloride and sulphate attack Better resistance to alkali-silica reaction. Resistance to corrosive attack on steel reinforcement. Reduced lime leaching. High compressive strength. High modulus of elasticity especially at later ages. Improved bondage of concrete to steel. Long term strength gain.

USAGE:Jaypee Cement (PPC) is being used for a number of applications like housing, commercial complexes, roads, wells,canals, dams etc. which establishes Jaypee preferred choice of the discerning customer. It is particularly well suited for the tropical climatic conditions of India.

ORDINARY PORTLAND CEMENT 43 Grade Conforming to IS: 8112-1989 53 Grade Conforming to IS: 12269-1987 53 S Grade Conforming to IRST-40(53 S) Jaypee Cement (OPC-43 Grade)

Jaypee Cement (OPC-43 Grade) is produced from enriched limestone most suited to make high quality clinker,which on grinding gives a cement with characteristics surpassing those specified in IS: 12 | P a g e

8112 1989. Jaypee Cement(OPC-43 Grade) is available in 50 Kgs HDPE bags of a distinctive design and cover. Jaypee Cement (OPC-43 Grade),has emerged as the top choice of Engineers and Engineering Companies engaged in construction of mega projects such as National Highways, Bridges, Transmission lines, power plants, Industrial and Residential structures. Jaypee Cement (OPC-53 Grade)

One of the very few cement manufacturers having the potential to manufacture this special grade of super fine cement which due to its enhanced quality and performance parameters has been approved by the RDSO of Indian Railways for manufacture of RAILWAY SLEEPERS.

PRICE
In cement industry price is the key factor that differentiate various competitors brands. The prices of different brands in the same segment remain more or less similar, with just a difference of 2-5 rupee per bag. Sometimes price varies with the type of order placed by the customer (trader or nontrade).Pricing decisions in the cement industry largely depend on the price of the inputs like clinker, other raw materials,excise duties and taxes and the general operating profits. Generally increase or decrease of input cost affects all brands in the market. Most of the cement companies offer a 5% -10% margin to the dealer and particular amount of money against per tonnes of the sales to the sales organizers for promoting their sales in his region. Due to internal competition, the dealers pass on this advantage to the customers by reducing their own margins by 2- 3%.This is a cause of concern for the cement companies as they are not able to fix the prices and have to keep a constant check on the market. Cement companies offer lot of discounts like cash discounts, volume discounts,seasonal discounts, foreign tours and allowances to dealers for promoting healthy sales. Jaypee produces a wide variety of cements, which are specifically designed to cater to the customers requirements for different types of cements in each of its markets. All the brands, which the Company produces,are so evolved in their characteristics and properties that they will surpass BIS Standards. Thus basic prices for different brands of JAYPEE CEMENT in Mohali district are given below:

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JAYPEE CEMENT (PPC) PPC stands for PORTLAND POZZOLANA CEMENT Price of Jaypee Cement (PPC) containing 50 Kgs is INR 270-300 per bag.

Jaypee Cement (OPC-43 Grade) OPC stands for Ordinary Portland Cement contains 50 Kgs is INR 250-320 per bag)

Jaypee Cement (OPC-53 Grade) INR. Rs.250-320per bag contains 50 K

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DISTRIBUTION NETWORK
Jaypee cement has around 156 cement dumps and all are networked using State-of-the-art TDM/TDMA VSATs along with a dedicated hub to provide 24x7 connectivity between the plants and the points of cement distribution.This insures track the truck initiative and provides seamless integration. This initiative is the first of its kind in the cement industry in India. JAL has set up new capacities in Northern, Central, Western & Southern parts of the country and is targeting a capacity of 26 MTPA in 2010 and 32.80 MTPA by 2012, along with Captive Thermal Power Plants (CPPs) totalling 375 MW. Now the group has 12 integrated cement plants supported by 375 MW of captive thermal power, 9 split location plants, 11 railway sidings

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Geographical Spread Central Zone Jaypee Rewa Plant (JRP) Jaypee Nagar, P.O. Jaypee Nagar Rewa - 486450 (M.P) Tel.: (07662) 400700, 229601- 09 Fax: (07662) 229218 CAPACITY 3.00 MnTPA

Bhilai Jaypee Cement Limited (BJCL) Village & Post Babupur, Distt. Satna - 485112 (M.P.) (Clinkerisation Unit) Tel.: (07672 ) 415500, 276248 - 49 Fax: (07672) 276216 (07662) 409301- 09 North Zone Jaypee Roorkee Cement Grinding Unit (JRCGU) Vill. Nalherideh, P.O. Nalhera Anantpur Taluka Roorkee, Distt. Haridwar (U.K.) 247667 Tel.: (01332) 231941, 45, 46 Fax: (01332) 231941 CAPACITY 1.20 MnTPA Jaypee Cement Grinding Unit (JCGU) Village Khukhrana, P.O: Asan Kalan Tehsil: Madlauda, Distt. Panipat - 132103 (Haryana) Tel.: (0180) 2520160 Fax: (0180) 2520100 CAPACITY 1.50 MnTPA Jaypee Himachal Cement Grinding & Blending Unit (Bagheri) Vill. Tikari (Pandiyana) P.O. Khilian, Tehsil Nalagarh, Solan (H.P.) - 174101 Tel.: (01795) 229100, 266937, 266935, 229150 Fax: (01795) 229159 CAPACITY 2.00 MnTPA

Jaypee Bela Plant (JBP) Jaypee Puram, P.O. Jaypee Puram Rewa - 486450 (M.P) Tel.: (07662) 409301- 09 Fax: (07662) 409309 CAPACITY 2.40 MnTPA Jaypee Cement Blending Unit (JCBU) Village-Sadwa Khurd, Paragana Arail Tehsil - Bara, Distt. Allahabad (U.P.) Mob: 09956290958, 9935522345 CAPACITY 0.60 MnTPA

Jaypee Ayodhya Grinding Operations (JAAGO) P.O Husainpur Sudhana, Village Khanaura Tehsil: Tanda, Distt. Ambedkar Nagar 224190 (U.P) Tel.: (05273) 284809, 281020, 281015 Fax: (05273) 284609 CAPACITY 1.00 MnTPA Chunar Cement Factory (CCF) (A Unit Of U.P Cement Plant) P.O. Chunar, Mirzapur (U.P) - 231311 Tel.: (05443) 222926, 222265, 222602 Fax: (05443) 222700 CAPACITY 2.50 MnTPA

Jaypee Himachal Cement Plant (JHCP) Village Baga, P.O. Kandhar, Tehsil Arki Distt. Solan (H.P.) - 171102 Tel.: (01796) 223300, 223200 Fax: (01796) 223344 CAPACITY 2.00 MnTPA West Zone Jaypee Gujarat Cement Plant (JGCP) Sewagram Vill. Vayor, Taluka Abdasa Distt. Kutchh (Bhuj), Gujarat - 370511 Tel.: (02831) 279299, 279200 Fax: (02831) 279279 CAPACITY 2.40 MnTPA

Dalla Cement Factory (DCF) (A Unit Of Jaiprakash Associates Ltd.) Post : Dalla Distt. Sonebhadra (U.P.) - 231207 Fax: (05445) 265776 CAPACITY 0.50 MnTPA

Dalla Cement Factory (JP Super Dalla) 16 | P a g e

Jaypee Wanakbori Cement Grinding Unit (JWCGU)

(A Unit Of Jaiprakash Associates Ltd.) Post : Dalla Distt. Sonebhadra (U.P.) - 231207 Fax: (05445) 265776 CAPACITY 1.10 MnTPA (Under Execution)

Near Wanakbori Thermal Power Station Vill. Sangol, Post Sonipur, Distt. Kheda, Gujarat - 388245 Tel.: (02699) 232000 Fax: (02699) 236881 CAPACITY 2.40 MnTPA

East Zone jaypee Churk Industrial Complex (JCIC) P.O. Churk Distt. Sonebhadra (U.P.) - 231206 Tel.: (05444) 252110 CAPACITY 1.50 MnTPA (Under Execution) Bokaro Jaypee Cement Limited (BOJCL) Near Indian Oil Corporation Bottling Plant Plot: IV A 7 (P), Bokaro Industrial Area P.O. Balidah - 827014, Distt. Bokaro TelFax: (06542) 253278, 253279 CAPACITY 2.10 MnTPA South Zone Jaypee Balaji Cement Plant (BJCL) Survey No. 99, Vill. + Post Budawada Mandal-Jaggiyapet, District Krishna, Andhra Pradesh-521175 Tel.: (08654) 285011-18 Fax: (08654) 285010 CAPACITY 5.00 MnTPA

Jaypee Sidhi Cement Plant (JSCP) Jaypee Vihar, Majhigawan P.O. Bharatpur, Sidhi - 486776 Tel.: (07802) 276701 - 276710 Fax: (07802) 276715 CAPACITY 2.00 MnTPA

Jaypee Sikandarabad Cement Grinding Unit Durga Cement Works (DCW) (JSCGU) (A Unit of Andhra Cement Limited) 19 -20 Industrial Area, Durgapuram, Srinagar (Dist Guntur, Dachepalli Distt. Bulandshahr, Sikandarabad (U.P.) (Andhra Pradesh) Tel.: (05735) 222573, 224242, 221868, 221069 Tel.: (08649) 257428-29 Fax: (05735) 222564 Fax: (08649) 257449 CAPACITY 1.00 MnTPA CAPACITY 2.60 MnTPA (1.60 MnTPA Under Execution) Bhilai Jaypee Ginding Plant (BJGP) (A Unit of Bhilai Jaypee Cement Ltd.) (BSP Premises) Slag Road, (Opposite Sector IV NMOH) Bhilai, Distt. Durg (C.G.) - 490001 Tel.: (0788) 4022255-56 Fax: (0788) 4022216 CAPACITY 2.20 MnTPA

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Distribution Channel
A channel to market is the method of getting the product into the customers hand. Channel components vary with change in category of sale (direct sale or indirect sale). In direct sale the product is delivered to end customer directly from manufacturers. But in indirect sales channel involves various components such as sale promoters,distributors, retailers. Most of the companies have two tier distribution channels i.e. they only have distributors/dealers and retailers whereas Jaypee cement follows three tier distribution channels. They include sales promoters in their distribution channel to promote their sales. Companies invariably hire C & F agents to transport cements to own or government warehouses either via roadway or railways. Incase of exports, cement reaches the nearest port via roadways or railways and is then transferred to the importing country Domestically, from C & F agents or warehouses the cement is transported to the dealers/distributors and in turn to sub-dealers who finally sell it to the end users. There may or may not be physical ownership of goods. In the second case, dealers and sub dealers take order from buyers and place it to the companies, co -ordinate and monitor the timely dispatch of said orders, transportation of goods and final delivery. Distributor network incement industry is of high importance and companies are compelled to hire them as the companies do not really have that rapport and touch with the end consumer. The distributors have storage facilities which help them in controlling the entire supply chain as they are the ones who bring orders.

Manufacturing Unit Warehouse Dealers Sub Dealers Retailers

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PROMOTION

Jaypee Cements advertising has created brand awareness, highlighted what the brand has to offer and has consistently brought all of it top-of-the-mind for the customer. But the outreach effort does not end there. Jaypee Cement has recognized the importance of communicating to and involving key players who influence the final brand choice. These include channel partners, contractors and masons, on whom Jaypee cement focuses by initiating and developing innovative activities and promotions. This helps build the Jaypee cement family so that customers get a high degree of personalized service and professional guidance to facilitate their final decision. The company also does press releases to tell about their achievements and upcoming projects to market.

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STRUCTURE OF INDIAN CEMENT INDUSTRY

While the Competition Commission of Indias stunning penalty of Rs 6,307 crore on 10 top cement companies might have put other sectors including tyre and steel on high alert, it also provides an interesting insight into the cement industry THE CEMENT INDUSTRY IN INDIA 183 large cement plants and more than 360 mini cement plants 330 million tonnes a year installed capacity 97% of the installed capacity is accounted for by large producers, around 40 in number 21 top companies control 90% of the market 40% of the market is controlled by two groups, Holcim and Aditya Birla Group

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PEST ANAYLSYS aid us in understanding the big picture of the Political, Economic, Socio-Cultural and Technological environment in which the industry operates in

Political
The price of cement is primarily governed by the coal rates, power tariffs, railway tariffs, freight, and royalty.Interestingly government controls all of these prices. Government is also one of the biggest consumers of the cement in the country. Most state governments, in order to attract investments in their respective states, offer fiscal incentives in the form of sales tax exemptions/deferrals. States like Haryana offer a freeze on power tariff for 5 years, while Gujarat offers exemption from electric duty. Government Initiatives The Government of India has approved a package of fiscal incentives and other concessions for the North East Region, namely the North East Industrial and Investment Policy, 2007 In a bid to attract foreign investors to its ambitious highways building programme, the Ministry of Road Transport plans to roll out projects worth US$ 120 billion by 2016 With an aim of accelerating and sustaining growth in the cement industry the Government has taken various measures in the Union budget 2011-12. The infrastructure sector has received an impetus in the form of improved funds and tax related incentives offered to attract investors for tapping the infrastructure opportunities around India. Introduction of tax free bonds, formation of infrastructure debt funds and formulating a comprehensive policy for developing public private partnership projects (PPPs) are some of the steps that will provide required stimulus for growth.

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Economic
Current Scenario The cement sector notably plays a critical role in the economic growth of the country and its journey towards conclusive growth. Cement is vital to the construction sector and all infrastructural projects. The construction sector alone constitutes 7 per cent of the country's gross domestic product (GDP). The industry occupies an important place in the Indian economy because of its strong linkages to other sectors such as construction, transportation, coal and power. India is the second largest producer of quality cement in the world. The cement industry in India comprises 183 large cement plants and over 365 mini cement plants. Currently there are 40 players in the industry across the country. The cement industry in India is experiencing a boom on account of overall growth in the economy. The demand for cement, being a derived one, depends mainly on the industrial activities, real estate business, construction activities and investment in the infrastructure sector. Market Size The cement industry of India is expected to add 30-40 million tonnes per annum (MTPA) of capacity in 2013. The industry has a current capacity of 324 MTPA and operates at 75-80 per cent utilisation. "It is anticipated that the cement industry players will continue to increase their annual cement output in coming years and the country's cement production will grow at a compound annual growth rate (CAGR) of around 12 per cent during 2011-12 - 2013-14 to reach 303 million metric tonne (MMT)," according to a report titled 'Indian Cement Industry Forecast to 2012', by research firm RNCOS. Investments The cement and gypsum products sector has attracted foreign direct investments (FDI) worth Rs 11,779.04 crore (US$ 2.12 billion) between April 2000 to February 2013, according to the data published by the Department of Industrial Policy and Promotion (DIPP). Some of the major investments in the sector are as follows:

Barings Private Equity Asia has picked up a 14 per cent minority stake in the Indian unit of cement major Lafarge, for Rs 1,427 crore (US$ 257.11 million) Sinoma International Engineering (Hong Kong) Ltd, a part of the Chinese state-run National Materials Group Corp, has entered the Indian cement equipment industry by acquiring a majority stake in Chennai-based equipment manufacturer LNV Technology Ltd Dalmia Cement plans to invest Rs 1,800 crore (US$ 324.32 million) to increase the company's cement manufacturing capacity over the next two years. The company also plans to set up a 2.5 million tonne (MT) greenfield unit in Karnataka Ambuja Cements Ltd plans to invest Rs 2,000 crore (US$ 360.33 million) to enhance its cement capacities in Rajasthan and northern region. The proposed project at Rajasthan would add five MT capacity to the total cement production of India Reliance Cement Company Pvt Ltd (RCC), a subsidiary of Reliance Infrastructure Ltd, has commenced production of cement from its first manufacturing unit at Butibori, Nagpur in Maharashtra

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Social
Usually, the cement industry in India consists of both the organized sector and the unorganized sector. Organized sector comprises of the well-known cement manufacturing companies while the main players of the unorganized sector are the regional and local cement-producing units invarious states across the state. Key players in Indian cement industry

DOMESTIC PLAYERS:
Jaiprakash Associates Limited Jaiprakash Industries, now known as Jaiprakash Associates Limited (JAL) is part of the Jaypee Group with businesses in civil engineering, hospitality, cement, hydropower, design consultancy and IT. Jaypees cement business is housed in Jaiprakash Associates, a listed company that has a cementmaking capacity of 28 milliontonnes a year, making it Indias third-largest cement producer, behind capacities owned by Germanys Holcim and the Aditya Birla Group.The company is in the midst of capacity expansion of its cement business in Northern, Southern, Central, Eastern and Western parts of the country and is slated to be a 35.90 MnTPA by FY13 (expected) with Captive Thermal Power plants totaling 672 MW.Jaiprakash Associates has decided to concentrate on its core business of construction and engineering and leave its cement plant to its subsidiary Jaypee Rewa Cement Ltd. The company manufactures a wide range of world class cement of OPC grades 33, 43, 53, IRST-40 and special Blends of pozzolana cement. At present, the company has a market share by installed capacity of 7 per cent with the cement division contributing Rs.13, 904.07crore to revenue in 201011.The Jaypee Group which has been in the limelight after a group company staged Indias first Formula One race on October 30 has said it plans to raise capacity to 35 million tonnes by the middle of 2012. The cement business generated revenues of Rs 5,455.79 crore in FY 2010 but that was dwarfed by debt of Rs 11,500 crore.The groups three listed companies have a total debt of over Rs 40,000 crore, the result of rapid expansion. Apart from Jaiprakash Associates, the cement-maker, the other listed firms are Jaypee Infratech, which executes real estate and infrastructure projects, and Jaiprakash Power Ventures, which builds power plants and transmission systems."Right now, the type

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of solid assets the company has and the growth plan the company is working on would enable the company to deliver and register growth, not just comparable to but better than peers." Associated Cement Companies Ltd (ACCL) ACC (ACC Limited) is Indias foremost manufacturer of cement and concrete. ACCs operations are spread throughout the country with 16 modern cement factories, more than 40 Ready mix concrete plants, 21 sales offices, and several zonal offices. It has a work force of about 9,000 persons and a country wide distribution network of over 9,000 dealers.The history of ACC spans a wide canvas beginning with the lonely struggle of its pioneer F E Dinshaw and other Indian entrepreneurs like him who founded the Indian cement industry. Their efforts to face competition for survival in a small but aggressive market mingled with the stirring of a countrys nationalist pride that touched all walks of life - including trade, commerce and business.The house of Tata was intimately associated with the heritage and history of ACC, right from its formation in 1936 upto 2000. Between the years 1999 and 2000, the Tata group sold all 14.45 per cent of its shareholding in ACC in three stages to subsidiary companies of Gujarat Ambuja Cements Ltd (later called Ambuja Cement Ltd), who then became the largest single shareholder in ACC.A new association was forged between ACC and the Holcim group of Switzerland in 2005. In January 2005, Holcim announced its plans to enter into a long-term strategic alliance with the Ambuja Group by acquiring a majority stake in Ambuja Cements India Ltd. (ACIL), which at the time held 13.8 per cent of the total equity shares in ACC.Holcim simultaneously announced its bid to make an open offer to ACC shareholders, through Holcim Cement Pvt.Limited and ACIL, to acquire a majority shareholding in ACC. An open offer was made by Holcim Cement Pvt.Limited along with Ambuja Cements India Ltd. (ACIL), following which the shareholding of ACIL increased to 34.69 per cent of the Equity share capital of ACC. Consequently, ACIL filed declarations indicating their shareholding and declaring itself as a Promoter of ACC. Presently market capitalization of ACC is Rs. 22,826.53 cr. Ultratech Cement Ultratech Cement Limited is Indias largest manufacturer of cement with an installed capacity of 52 Million Tonnes Per Annum.Ultratechs products include Ordinary Portland Cement, Portland Pozzolana Cement and Portland Blast Furnace Slag cement. Ultratech is the most trusted and preferred brand of Engineers, builders, contractors and individual house builders.Ultratechs success is attributed to its diverse product offerings. Different products are handled by different product groups, which are also known as profiles. Product groups decentralize control and encourage innovation.They also ensure better customer segmentation, which in turn leads to better customization of product offerings and guarantees cent percent customer satisfaction. Ultratech Cement, Birla White, Ultratech Concrete, Ultratech Building Products and Ultratech Solutions are the different profiles of Ultratech, each catering to varied needs. This versatility has been a key competitive advantage for Ultratech over the years. Company has produced 32.92 MMT of cement with effective capacity utilization of 81% in 2011. Companys Netturnover stood at Rs.13210 crore with net profit after tax of Rs.1404 crore. Ambuja Cements Ltd (ACL) Ambuja Cements Ltd. (ACL) is one of the leading cement manufacturing companies in India. The Company, initially called Gujarat Ambuja Cements Ltd., was founded by Narotam Sekhsaria in 1983 with a partner, Suresh Neotia .Sekhsarias business acumen and leadership skills put the company on a fast track to growth. The Company commenced cement production in 1986. The global cement 24 | P a g e

major Holcim acquired management control of ACL in2006. Holcim today holds little over 46% equity in ACL. The Company is currently known as Ambuja Cements Ltd.Its current cement capacity is about 25 million tonnes SHREE Cement Ltd. Shree Cement Ltd (SCL) is present in the cement and power sector. It is the largest cement producer in North India and among top six cement manufacturing groups in the country. It has cement capacity of 13.5 million ton and power capacity of 560 MW. SCL has manufacturing facilities at Beawar and Ras in Ajmer and Pali district and grinding units at Khushkhera, Suratgarh and Jaipur respectively in Rajasthan and Roorkie in Uttarakhand. SCL boasts of highly recognized brands like Shree Ultra Jung Rodhak, Bangur Cement and Rockstrong. SCL is an ISO9001, ISO 14001, OHSAS 18001 and SA 8000 certified company and pursues best practices in Manufacturing, Energy Conservation and Environment Management. SCL has received numerous awards and recognitions at national and international levels for Excellence in Energy Management, Environment Management and Corporate Governance practices. Companys turnover for 12 months period of April11 -March12 was Rs 4625 cores. SCL is a consistent dividend paying company (120% dividend for April11-March12). SCL commitment to energy efficiency and environment management is reflected in the fact that it set up Waste heat recovery plants of 46 MW which is the largest such capacity in the world cement industry excluding china. SCL commissioned Unit VIII in World Record time of 330days against average period of 630 days. It enjoys approx. 19% market share in North India and is leader in markets of Rajasthan, Delhi and Haryana. FOREIGN PLAYERS: Heidelberg Heidelberg Cement is the global market leader in aggregates and a prominent player in the fields of cement,concrete, and other downstream activities, making it one of the worlds largest manufacturers of building materials. In 2011, Group revenue amounted to 12.9 billion. The core activities of Heidelberg Cement include the production and distribution of cement and aggregates, the two essential raw materials for concrete. We supplement our product range with downstream activities such as ready-mixed concrete, concrete products, and concrete elements, as well as other related products and services. Around 52,500 employees in more than 2,500 locations make sure on a daily basis that our slogan for better building is brought to life. Italcementi Group The Italcementi group is one of the largest producers and distributors of cement with 60 cement plants, 547 concrete batching units and 155 quarries spread across 19 countries in Europe, Asia, Africa and North America. Italcementi is present in the Indian markets through a 50:50 joint venture company with Zuari Cements. All initiatives in southern India are routed through the joint venture company, while Italcementi is free to buy deals .Inits individual capacity in northern India. The joint venture company has a capacity of 3.4 million tonne and amarket share of 2.1 per cent Lafarge India Lafarge the worlds largest cement manufacturer entered the Indian market in 1999 through its cement business,with the acquisition of Tata Steels cement activity. This acquisition was followed by the purchase of the Raymond Cement facility in 2001. 25 | P a g e

Lafarge is one of the leading players in the cement industry in Eastern and Central India, with its leading brands -Concreto and Dura guard. The company currently has four cement plants in India: two integrated cement plants inthe state of Chhattisgarh (Sonadih and Arasmeta) and Grinding Units in Jharkhand (Jojobera) and West Bengal(Mejia). Lafarges total cement production capacity in the Indian market is currently over 8 million tons and the Group has launched an ambitious program to more than double its capacity in the next five years. Holcim Holcim, earlier known as Holder bank, has a cement production capacity of 141.9 million tonne. It is a key player in aggregates, concrete and construction related services. It has a strong market presence in over 70 countries and isa market leader in South America and in a number of European and overseas markets. Holcim entered India by means of a long-term strategic alliance with Gujarat Ambuja Cements Ltd (GACL). The alliance aims to strengthen their clinker and cement trading activities in South Asia, the Middle East and the region adjoining the Indian Ocean. Holcim also intends to use India as an additional base for its IT operations, R&D projects as well as a procurement sourcing hub to generate additional synergies and value for the group

Technology
From mining to production the entire process depends on technology. Several companies have adopted innovative strategies and technologies to reduce their operational and production costs. The Government of India is alsolooking forward to study and possibly acquire new technologies from the cement industry of Japan. The government is discussing technology transfer in the field of energy conservation and environment protection tohelp improve efficiency of the Indian cement industry.Cement industry has made tremendous strides in technological up-gradation and assimilation of latest technology.

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PORTERS FIVE FORCES MODEL

Threat of New Entrants (High): The existing companies are struggling hard to expand their production capacity to face the rising competition. With the announcement of the Indian Government in the budget for theFY2010-2011 to pump in more than Rs.1.73 trillion in infrastructure (Thomson Reuters Corporate), the cement industry becomes a very attractive market to enter, thus increasing the threat of new entrants. But the high capital costs acts as a major entry barrier for the entry of new players. Cement being a high volume low value commodity results in high freight costs, which makes cement imports economically unfeasible. Competitive rivalry between existing players (High): Being a non-consolidated industry the rivalry is strong among the players. During the last few years the industry has become more consolidated with the Top 3 players having a combined market share of 70 percent in 2011-12 as compared to 32 percent in 1999-2000.Still rivalry persist to great extent to acquire maximum market share. The Indian cement industry has large number of cement producers thus making it a low concentration market. The four biggest cement players in the Indian cement industry are: 1. Ultratech cement 2. Ambuja Cement 3. ACC cement 4. Jaypee cement

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Bargaining power of Buyers (Low): In the present day context, cement producers have become more powerful than buyer because of housing growth. In the current situation, most of the companies are moving into direct marketing, thus removing middlemen. Despite enough competition from high institutional demand of cement, small-time buyers are still targeted as a primary market by the cement companies.Around 80 percent of the total sales are being contributed by retail and the rest by institutional sales. But as institutional players buy in bulk they get a discount of 5%-1. Thus the primary target is not left with much bargaining power. Bargaining power of Suppliers (Low): The basic raw materials used in the cement manufacturing process are limestone, sand, shale, clay, and iron ore. The main material, limestone, is usually mined on site while the other minor materials may or may not be mined there. Since all the raw materials are natural resources, they are under the Governments control. To mitigate the high costs of power the cement players have set up captive power plants .Hence, Companies have to buy rights from the government to setup the cement plant. So there are no such suppliers in the cement industry. Threat of Substitutes (Low): Now-a-days Timber is also being considered as one of the substitutes of cement. In many countries like Japan, Indonesia, Singapore etc. are now using timber in construction since those areas are high earthquake affected. They now prefer timber which is cheap and long lasting for years.But timber cannot be considered, as one of the major substitutes of cement, therefore cement is one of the main components of any construction. Without cement, construction workis next to impossible as it provides strength to the building.

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INDUSTRY SWOT ANALYSIS

Strengths: Double digit growth rate Cement demand has grown in tandem with strong economic growth; derived from: Growth in housing sector key demand driver; Infrastructure projects like ports, airports, power projects, dam & irrigation projects National Highway Development Programme Bharat Nirman Yojana for rural infrastructure Rise in industrial projects Export potential also demand driver

Weakness: Low value commodity Cement Industry is highly fragmented Industry is also highly regionalized which leads to threat of infiltration Low value commodity makes transportation over long distances uneconomical.

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Opportunities: Demandsupply gap Substantially lower per capita cement consumption as compared to developing countries. Limited green field capacity addition in pipeline for next two years, leading to favorable demand supply scenario

Threats: Rising input costs Government intervention to adjust cement prices Transportation cost is scaling high; bottleneck due to loading restrictions Coal prices climbing up; industry players say current shortage of coal in the country is estimated to be over 10 million tones

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DETAIL REPORT

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OBJECTIVE OF THE PROJECT

This project was undertaken for following objectives : To carry out market survey for knowing prevailing market condition of Jaypee cement in Mohali district. To check awareness of Retail shop owner about the product. To study the sales and promotion activities undertaken by Jaypee cement and other players in the market. To check if there is some scope for increasing sales through some new promotional schemes.

To attain these objectives various other sub objective are needed to be achieved. These are listed below.

sorting different brands of cement.

brands. companies. various companies

Thus it attempt to find ways to increase market share, to increase customer satisfaction and thus increase the business prospects.

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Scope of the study

1. The study has been done for the Cement so more or less it helps in understanding the consumer preference towards the cement market. 2. The study can help in analyzing certain weak point, improving on which a company can overcome the low sales of its cement but only in Mohali district.

Research Methodology
Since the cement is a core product and being used by all types of consumers, so our focus for collection data was each and every man who are directly or indirectly involved with the sale or use of cement such as stockists, dealers, civil engineers, contractors, individual customers, masons, etc. To know the position of Jaypee Cement in the trade and non-trade segment regarding sale in comparison with the other brands on the basis of attributes of cement has been done. For this purpose, opinion of stockists, dealers (who posses knowledge regarding different brands available in the market) has been taken. This might be helpful to draw the right picture about the market scenario. This was convenient in nature because I would have to account only those people who actually require or purchase cement in bulk quantity. The survey is conducted with the help of questionnaire method and survey is conducted in the Mohali district. Every type of research requires two types of data to be collected to reach up to any conclusion: Primary Data are those data, which are directly obtained from people by approaching them individually, primary data are generated when the researcher employing mail questionnaire, telephone surveys, personal interviews, observations and investigates a particular problem at hand. For this project primary data was collected from stockists, dealers by using survey method. Data collection from respondents was carried out with the help of a structured interview schedule. In this method data was collected from respondents through questionnaires. Secondary Data, on the other hand, includes those data, which are collected in the past for other research work and are being used in current project work. Secondary Data, such as procedures of marketing for cement, marketing conditions, brief details of Jaypee Cement and other competitors, price, quality, and other strategy and planning, specification in relation to other cement companies, all other information which can be useful to complete this project, was collected for Sales and Marketing Department of Jaypee Cement. Published Documents of Jaypee Cement and other competitors cement plants have also been used for collection of secondary data.

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Position of various cement brands in Zirakpur, Dhakoli & Baltana regions of Mohali district :
Below mentioned response is based on the survey conducted from about 24 cement dealers. Which include wholesellers, retail based dealers(RBD) & retailers of jaypee, ultratech, ambuja, JK, ACC & other cement brands such as birla & shree. There is a total monthly consumption of about 4000 tonnes in the area. The major portion of market is captured by ambuja of about 1100 tonnes followed by its competitor ultratech i.e 800 tonnes than jaypee & JK aprox 600 tonnes each. ACC & other cement brands consume about 300 & 400 tonnes.

Following is the average monthly sale by dealers & retailers of various cement brands :

OPTIONS JAYPEE ULTRATECH AMBUJA JK ACC OTHERS TOTAL RESPONSES

RESPONSE(%) 15.4 20.5 28.2 18 7.7 10.2 100%

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30 25 20 15 10 5 0 Jaypee Ultratech

Data Analysis
28.2

20.5 18 15.4 10.2 7.7

Ambuja

JK

ACC

Others

INTERPRETATION:
Average sale per month by dealers & retailers of ambuja & ultratech is maximum i.e 28.2% for ambuja & 20.5% for ultratech followed by 18% by JK & 15.4% by jaypee. Whereas ACC & others have 7.7% & 10.2%.Thus average sale per month by dealers & retailers of jaypee is very less as compared to ambuja & ultratech.

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After doing survey and getting filled the questionnaire from various cement counters & dealers of few regions of Mohali district which include Zirakpur, Baltana,Dhakoli. Conclusions which came out were as follows: PROBLEMS: 1) Firstly demand of ambuja is more in the region followed by its close competitor ultratech. 2) Jaypee is a good quality cement as compared to its competitors but it has less name in the market. 3) Jaypee has trading policy whereas few dealers want non trading policy (V.K Traders, zirakpur) 4) There are lot of rate issues , no specific rates are told to the dealer.(Sethi cement store, vill himmatgarh dhakoli) 5) Few dealers were interested but didnt got a good response.(Raj hardware, main bazaar baltana) 6) The main issue is of packing. New packing is not appreciated by the dealers as it tears easily & there are lifting problems faced by the labour.(Channi cement store, Lohgarh Sethi cement store, vill himmatgarh dhakoli) SUGGESTIONS: 1) Jaypee cement should work more on marketing strategies to make the brand more aware among the customers. 2) Change in rates should be timely informed to the dealers. 3) Old packing is more in demand as compared to new packing.

INTERESTED IN SUB-DEALERSHIP 1) Yadav cement store, shivam market dhakoli 9417133804. 2) Bansal building material, shop no-2 shalimar enclave dhakoli 9417433947.

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Position of various cement brands in Derabassi, Dappar & Lalru regions of Mohali district :
Below mentioned response is based on the survey conducted from about 20 cement dealers. Which include wholesellers, retail based dealers(RBD) & retailers of jaypee, ultratech, ambuja, JK, Bangur & other cement brands such as ACC & shree. There is a total monthly consumption of about 2500 tonnes in the area. The major portion of market is captured by ultratech of about 750 tonnes followed by its competitors ambuja, jaypee, JK & bangur having a consumption of 300, 350, 325 & 335 tonnes with a close competition among each other.

Following is the average monthly sale by dealers & retailers of various cement brands :

OPTIONS JAYPEE ULTRATECH AMBUJA JK BANGUR OTHERS TOTAL RESPONSES

RESPONSE(%) 14.3 32.3 12.5 13.5 13.9 9.4 100%

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Data Analysis
35 30 25 20 15 14.3 10 5 0 Jaypee Ultratech Ambuja JK Bangur Others 12.5 13.5 13.9 9.4 32.3

INTERPRETATION:
Average sale per month by dealers & retailers of ultratech is maximum i.e 32.3% followed by other cement brands which are nowhere in the competition i.e 14.3% by jaypee 12.5% by ambuja 13.5% by JK 13.9% by bangur & 9.4% by others i.e ACC & shree. Thus average sale per month by dealers & retailers of jaypee is very less as compared to ultratech.

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After doing survey and getting filled the questionnaire from various cement counters & dealers of few regions of Mohali district which include Dera bassi, Dappar, Lalru. Conclusions which came out were as follows: PROBLEMS: 1) Market is again captured by ultratech & ambuja. 2) Jaypee cement is less in demand as compared to its competitors. 3) There is transportation problem. No cooperation of the suppliers.(Garg Iron Store, Adarsh nagar dera bassi Janta cement store, Dharamgarh road Lalru mandi) 4) No advertisement material being supplied. 5) Few dealers left dealership due to billing issues and were not satisfied with company policies. ( Aggarwal trading co., Adarsh nagar dera bassi parkash iron store, barwala road dera bassi) 6) Packing problem is faced by all the dealers.

SUGGESTIONS: 1) More awareness should be made among the labour and thekedars by having regular meetings & distributing gifts among them. 2) Jaypee cement has the best quality as compared to its competitors, it just need more publicity. 3) Transportation issues should be reolved as its competitors provide a good co-operation in supplies. 4) Advertisement material is in great demand among all the dealers which need to be provided to create more interest in them and enthusiasm among labour to work for jaypee cements. 5) Old packing need to be brought in market again.

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Position of various cement brands in Nayagaon, Mullapur & Kurali regions of Mohali district :
Below mentioned response is based on the survey conducted from about 30 cement dealers. Which include wholesellers, retail based dealers(RBD) & retailers of jaypee, ultratech, ambuja, ACC & other cement brands such as bangur, JK & shree. There is a total monthly consumption of about 4000 tonnes in the area. The major portion of market is captured by ambuja of about 900 tonnes followed by its competitors jaypee, ultratech & ACC having a consumption of 750, 720 & 700 tonnes.

Following is the average monthly sale by dealers & retailers of various cement brands :

OPTIONS ULTRATECH AMBUJA JAYPEE ACC OTHERS TOTAL RESPONSES

RESPONSE(%) 20 24.5 20.2 19.3 16 100%

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Data Analysis
30 25 24.5 20 15 10 5 0 Jaypee Ultratech Ambuja ACC others 20.2 20 19.3 16

INTERPRETATION:
Average sale per month by dealers & retailers of ambuja is maximum i.e 24.5% followed by its close competitors jaypee, ultratech, ACC & others i.e 20.2%, 20%, 19.3% & 16%. Thus average sale per month by dealers & retailers of jaypee is quiet competable as compared to its competitors in the region.

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After doing survey and getting filled the questionnaire from various cement counters & dealers of few regions of Mohali district which include Nayagaon, Mullapur, Kurali. Conclusions which came out were as follows: PROBLEMS: 1) Inspite of good market dealers are not satisfied. Some are looking forward to leave the dealership. (Durga iron store, sabzi mandi kurali) 2) Less brand awareness is there among people. ( sonu traders, nayagaon) 3) Rude behaviour of company employee with the dealers. ( durga iron store, sabzi mandi kurali) 4) No advertisement material. ( Manish cement store, mullapur) (durga iron store, sabzi mandi kurali) 5) Billing issues and pricing problems. 6) Transportation and packing problems.

SUGGESTIONS: 1) Regular meetings should be held with the dealers to keep them satisfied. 2) There should be some brand awareness campaigns in region where people are not aware of the brand. 3) Politeness must be there while dealing with the dealers, it reflects the company & brand image. 4) Advertisement material is again in great demand. 5) Measures should be taken to resolve billing issues faced by many dealers. 6) Measures should be taken to resolve packing and transportation issues too.

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Position of various cement brands in Mohali city & Kharar regions of Mohali district :
Below mentioned response is based on the survey conducted from about 30 cement dealers. Which include wholesellers, retail based dealers(RBD) & retailers of jaypee, ultratech, ambuja, ACC & other cement brands such as JK & shree. There is a total monthly consumption of about 6500 tonnes in the area. The major portion of market is captured by jaypee of about 1500 tonnes followed by its competitors ambuja, ultratech, ACC & others having a consumption of 1400, 1200, 1100 & 900 tonnes.

Following is the average monthly sale by dealers & retailers of various cement brands :

OPTIONS AMBUJA ACC ULTRATECH JAYPEE OTHERS TOTAL RESPONSES

RESPONSE(%) 22.3 18.2 20 24.5 15 100%

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Data Analysis
30 25 24.5 20 20 15 10 5 0 Jaypee Ultratech Ambuja ACC Others 18.2 15 22.3

INTERPRETATION:
Average sale per month by dealers & retailers of jaypee is maximum i.e 24.5% followed by other cement brands giving a close competition i.e 22.3% by ambuja 20% by ultratech 18.2% by ACC & 15% by others i.e JK & shree. Thus average sale per month by dealers & retailers of jaypee is good compared to its competitors.

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After doing survey and getting filled the questionnaire from various cement counters & dealers of few regions of Mohali district which include Mohali city & Kharar. Conclusions which came out were as follows: PROBLEMS: 1) Jaypee has a good market as compared to other regions of the district but still some dealers are having personal issues & are looking forward to leave the dealership. ( vishal trading, kharar) 2) There are many dealers in a small region leading to rate clashes. Some already left subdealership & dealership. (Banga constructions, jhungian road kharar) (Krishna steel & building material, kharar) 3) Arrogant attitude with dealers. ( vishal trading, kharar) 4) Transportation & packing problems.

SUGGESTIONS: 1) Regular meetings should be held with the dealers to keep them satisfied. 2) There should be a proper retail price and wholesale price rate structure and dealers must be timely informed about the price change. 3) Transportation & packing issues should be resolved.

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Overall Position of Jaypee Brand & its competitors in Mohali District :

After analysing the whole data of various regions the final results which came out from the survey are that there is a total consumption of about 18,000 tonnes of cement in mohali distt. The main players in market are Ambuja & Ultratech followed by Jaypee. There is a total consumption of 3700 tonnes of ambuja, 3300 tonnes of ultratech & 3000 tonnes of jaypee. Other players in the market are ACC, JK, Bangur, Shree & Birla with a consumption of 2800, 2200, 1700 & 1300 tonnes. Thus in a short duration of almost 3yrs jaypee has created a good brand name in the market & is giving a tough competition to its competitors .

Following is the average monthly sales of jaypee & its competitors in mohali district :

OPTIONS JAYPEE ULTRATECH AMBUJA ACC JK OTHERS TOTAL RESPONSES

RESPONSE(%) 18 19.2 20.1 15.5 14 13.2 100%

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Data Analysis
25

20 18 15 19.2 20.1 15.5 14 10 13.2

0 Jaypee Ultratech Ambuja ACC JK others

INTERPRETATION:
Average sale per month by ambuja is maximum i.e 20.1% followed by ultratech & jaypee giving a close competition i.e 19.2% by ultratech & 18% by jaypee. Other players are ACC, JK, bangur, birla & shree with sales of 15.5%, 14.2% & 13.2%. Thus the average sales by jaypee is good taking into consideration the duration in which it has set a good brand name in market comparing to its competitors.

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While dealing with cement how important are various features such as cost quality, brand-image, packing & promotional activities was known by the survey :

Sales

15%

15%

Cost 10% 20% Quality Brand image Packing promotional activities

40%

INTERPRETATION:
40% of dealers & retailers suggested that brand image is an important feature while dealing with cement. Thus, brand image is ranked 1st, whereas 20% of dealers & retailers suggested that packing should be given preference. So, packing is ranked 2nd. On the other hand cost & promotional activities are at 3rd rank each with 15%, quality is at 4th rank with 10%.

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SWOT Analysis
SWOT Analysis is an effective way of identifying your strengths and weaknesses and of examining the opportunities and threats.

STRENGTHS a) Potential market is closed to the factory. b) Establishing brand-historical advantage. c) Consistent good quality of cement.

WEAKNESSES a) Dealers are facing Billing problem by the company. b) Lack of awareness programme for consumers. c) Transportation problems.

OPPORTUNITIES a) Well establish brand will be helpful in increasing sales. b) Growing market. c) Strong infrastructure requirement for the development of the country and the country will develop in absolute swiftness.

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THREATS a) Tough competition from Ambuja & Ultratech. b) Other brands like Ambuja & Ultratech provide maximum profit to both dealers & retailers. c) Dealers expect more promotional activities & schemes.

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CONCLUSION
To attain the objective of the project detailed information was collected from the market of Mohali district. The market research has revealed many facts and figures about the cement scenario in the market prevailing. Jaypee cement has captured a good market in the district. This is the result of good quality of cement along with their effective marketing efforts, the whole market customers of Jaypee cement are highly satisfied with the use of it, as they do not face any problem after using it. There are seven major players in the market but the major competition is between the two brands of cement i.e Ambuja & Ultratech. But because of good efforts, Jaypee cement is able to grasp a good share. The market survey undertaken shows that effective marketing efforts play a vital role in creating the goodwill for the brand. The distribution channel of cement industry must be well designed. Technical team is making effective efforts to maintain the goodwill for the brand.

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SUGGESTIONS
A very exhaustive study has been made, keeping in the essence of the objective of the project. With the efforts put on the project a detailed analysis was conducted and result was derived, based on the results and market response few suggestions are discussed below. A Price fluctuation creates problems for dealers & retailers as they cannot keep the commitments of price to customers. The reach to market of few regions need to be strengthened. Transportation facility need to be improved, a significant amount of business suffers due to this. Effective efforts must be put to keep the dealers & retailers satisfied by various promotional schemes & activities.

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LIMITATION OF THE STUDY

1. Lack of cooperation from the retailers in regard to giving interview 2. It was found in some cases dealers showed inclination towards certain brands which gave them more margins when compared to others. 3. It was experienced during the survey that it was difficult to convince or make the retailers and dealers understand the important of the project

4.

As the retailers and dealers thought that it was unwise for to give their details of business as they feared competitors would take advantage.

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