JAYPEE CEMENT Summer Project

THESIS
ON
JAYPEE CEMENT

SUBMITTED TO: SUBMITTED BY:

Mr. AVINASH BAGUL SUSHIL KUMAR SINGH

Faculty guide-ISCS Pune Roll No.:-52

Section: - A

PGP+PGDBA (2009-11)

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JAYPEE CEMENT Summer Project

TABLE OF CONTENTS

1 Acknowledgement………………………………………..3

2 Introduction…………………………………………….…4-12

3 Objective………………………….………………………13

4 Limitations……………………..…………………………14

5 Research Methodology…………………………………15-19

6 Review Literature…………..……………………………2o-23

9 Recommendations……………………………………….24

10 References……………………………………………….25

1. ACKNOWLEDGEMENT

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JAYPEE CEMENT Summer Project

This project was successful due to the co-operation extended by people who have truly
contributed towards it. I would like to thank some certain people who play a vital role in
completion of this project and make it worth full and successful.

I gratefully acknowledge Mr. Shehnawaz Hussain, Mr. Bhuwanesh(Market

development officers) and Mr.Ajay Singh (Area manager) , who is our industrial guide
from BS to the company, who’s deep sharing and synergy have moved me many
levels beyond my own thinking.

I would also like to thank Mr. Avinash Bagul,the college coordinator, who also guide me
to overcome from different problems which came across during the project.

And finally I would like to thank my friends and to those whose lives and writings have
come the Wisdom of ages.

2. INTRODUCTION
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JAYPEE CEMENT Summer Project

Company Profile

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 Indian Standards .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), because of its fine

nature, good particle size distribution, optimal phase composition, imparts the properties
of higher strength to the structures. The Chemical & Physical properties of Jaypee
Cement (OPC-53 Grade) surpasses the properties of OPC 53 grade as defined in IS.
Jaypee Group is an infrastructure conglomerate with diverse business interests ranging
from Engineering and Construction, Cement, Private Hydropower, Hospitality,
Information Technology, and Real Estate Development to Expressways and Highways.

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JAYPEE CEMENT Summer Project

Industry Update

India is the second-largest producer of cement in the world after China with
industry
capacity of approximately 160 MT in 2006. The cement industry is regional
in nature due to
the concentration of limestone reserves located in a few states. This has
resulted in a
surplus situation in some regions and a deficit in others. Demand for cement
has grown at a
CAGR of 9.1% in the last two years with supply growing at a CAGR of 8.2%
in the same
period. With a large amount of infrastructure activities being planned in
commercial, real
estate and housing sector along with huge development works in roads,
railways, ports and
hydel projects, we expect the cement demand growth momentum to stay
intact. We expect
this to have a positive impact on cement prices in different regions till new
capacities come
up by mid-FY09.

􀂃 Growing presence of international players

The cement industry witnessed serious M&A activity in the past few years, as a result of
which
the top four players now account for almost 52-55% of the installed cement capacity of
India,
as against 40-42% in FY00.The M&A activity have also had global participants. The
growing
presence of international players bring with them better technology and operational
efficiencies which could significantly alter pricing patterns .

􀂃 Expected infrastructure investments

The investments to the tune of Rs.2900 billion are expected in the infrastructure
segment for
FY07-08 which will drive growth in the construction and cement industry. Infrastructure
investments worth Rs.2900 billion should translate into approximately Rs.1500 billion
worth of
construction investments. This will drive the cement demand incrementally by Rs.49
billion,
hence translating into an incremental cement demand of approximately 12.3 metric
tonne.

Regional demand supply scenario

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JAYPEE CEMENT Summer Project

Being a bulk commodity, it is unviable to transport cement beyond a certain distance

and
due to the requirements of proximity to raw materials, proximity to markets, export
potential and high freight rates involved it becomes necessary to evaluate the sector on
a
regional basis. The industry is divided into five regions - north, south, east and west and
central.
North India
Northern region is facing an acute supply crunch for the last four years due to region's
demand-supply deficit and increased net exports to other regions. Cement demand in
theregion grew at a CAGR of 10% for the last five years and is expected to grow at the
same pace for the next five years, backed by aggressive infrastructure development
activities,significant hydel capacity addition in the region, surging housing demand,SEZs
construction, etc. The region will witness tight demand supply situation for the next two
years on account of soaring demand and limited capacity addition. In the last three
years,mere 5.2 mn tonnes of capacity was added and 3 mn tonnes of this arrived in the
last quarter of FY06. The sector will witness a deficit of 1.7 mn tonnes in FY07E and
marginal surplus of 1.3 mn tones in FY08E. Till the end of FY08E, the outlook remains
positive on the region. Cement prices in the region moved up by 5.6% YoY in FY06 to
Rs 172 per 50kg bag. Reflecting the tight demand-supply situation, cement prices
during the Apr-Aug'06 soared by 26.2% YoY to Rs 207 against Rs 164 in the
corresponding period of the previous year.
West India
Cement demand in the Western region has grown at a CAGR of 5.8% for last five years,
backed by consistent infrastructure spending, concentrated investment from region-
specific industries like oil refineries in Vadodara and Jamnagar region of Gujarat and
steady growth in housing activities. The demand will continue to grow at the same pace
for next 3-5 years fuelled by enhanced infrastructure spending like construction of the
Metro Railway in Mumbai, express highways joining Gujarat and Mumbai, etc.,
resurgence in industrial investments, strong growth in retail sector. Prices in the
Western region surged by 12% YoY to Rs 166 per 50kg bag in FY06 while for the five
months ended Aug'06, prices in the region soared by 27% YoY to Rs 204 per 50kg bag.
The prices are expected to remain high for another 2 years, aided by improved demand
growth and tight supply.
South India
The demand in the region has grown at CAGR of 10.2% for the last five years as
compared
to capacity addition growth of 6.5% for the same period, reflecting the low capacity
addition in the region since FY02. The region's demand is expected to grow in the range
of 8-9% for the next five years on account of strong capital expenditure in the IT and
electronic hardware sector, enhanced spending on infrastructure development, special
thrust on irrigation activities, etc. The Southern region witnessed the highest jump in the
cement prices among all the regions during Apr Aug'06. Prices started recovering in
Oct'05 wherein the prices were up by 6% YoY and the trend is being maintained since
then. In Aug'06, the prices touched the Rs 211 mark while the average prices for the

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JAYPEE CEMENT Summer Project

Apr-Aug'06 period, the prices grew by 30.6% to Rs 210.4 and prices are expected to
sustain at the current level.
Central India
Demand in the Central region grew at CAGR of 5% as compared to All-India demand
growth of 8.5% Capacity utilization in the region will continue to remain above 99% for
next two years and the region carries the lowest risk among all the regions as the trend
would continue even in FY09E. Cement prices in the region have moved North on
account of negligible capacity addition and diversion of production to the neighboring
supply deficient northern region. Prices are expected to be sustained at current levels
for another next two years till the time huge capacity addition sets in the Northern
region.
East India
The region is witnessing frenzied investments to the tune of $140bn to be implemented
in next 5-10 years. The Eastern region lacks infrastructure to aid this quantum of
investment, hence it will fuel the emergence of aggressive infrastructure development.
Prices are expected to remain strong on the back of diminishing surplus and tight
consolidation present in the region, with 73% of the market being controlled by top five
players (three on group-wise criteria, ACC+Gujarat Ambuja, Ultratech+ Grasim and
Lafarge). Volatility in cement prices in the Eastern region has been least among all the
regions. In FY03, All-India cement prices declined by 7.5% YoY to Rs 138 while
average prices in the Eastern region remained firm at Rs 147 per 50kg bag. We expect
the prices to remain strong for the next two years, reflecting the gains of tight
consolidation and bolstering demand

Business Interests of Jaypee Group

Civil Engineering: Jaiprakash Associates Ltd., the flagship company of the Group,
is a pioneer in construction of river valley and hydropower projects on turnkey basis in
India. Jaypee Group has executed 13 Hydropower projects spread over 6 states of India
and neighbouring Bhutan to generate 10,290 MW of power.

Hydropower: Jaypee Group ventured into hydropower in 1992, with the formation of
Jaiprakash Hydro Power Ltd (JHPL) and Jaiprakash Power Venture Ltd. (JPVL). The
group has undertaken following hydroprojects: Baspa Hydro - Electric Project Stage II
(300 MW) on the river Baspa, in Kinnaur district of Himachal Pardesh; Vishnu Prayag,
400MW project on the river Alaknanada; and Karcham Wangtoo 1000 MW project .

Cement: Jaypee Group is the 4th largest cement producer in the country. It produces
Ordinary Portland Cement and Pozzolana Portland Cement under the brand names
"Buland" and "Buniyad". The group has plants at Rewa, and Bela. Jaypee Group is
poised to achieve cement production capacity of 20 MTPA by the year 2009.

Hospitality: Jaypee Group owns and operates four Five Star Deluxe hotels through a
subsidiary company, Jaypee Hotels Limited. These hotels are: Hotel Siddharth and

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JAYPEE CEMENT Summer Project

Hotel Vasant Continental in New Delhi, Hotel Jaypee Palace Agra, and Jaypee
Residency Manor, Mussoorie.

Real Estate Development: Jaypee Group is developing real estate in Greater

Noida. Its property, Jaypee Greens, is spread over an area of 450 acres. It comprises
golf resorts, villas, townhouses, penthouses, condominiums, studio apartments,
commercial complexes and shopping malls.

Expressways & Highways: Jaypee Group is constructing the prestigious 160 km

long Expressway with Six lane access that would connect the historical city of Agra with
Greater Noida.

Information Technology: Jaypee Group Company JIL Information Technology

Limited (JILIT) specializes in: Hardware & Networking, Multimedia Services & Software,
and Enterprise Resource Planning.

Thermal Power: Jaypee Group has formed a Joint Venture company with Madhya
Pradesh State Mining Corporation Limited (MPSMCL) to undertake coal production and
sale of coal from coal block/blocks which might be allotted to MPSMCL. The company is
called Madhya Pradesh Jaypee Minerals Limited. The company has plans to set up
1000 MW Thermal Power Plant in Madhya Pradesh.

Transmission System: Jaiprakash Hydro-Power Limited has plans to venture into

the development of transmission systems with the Power Grid Corporation of India Ltd
(PGCIL).
Jaypee Cement chalks out Rs 3,500 crore expansion plan; ropes in Tendulkar as
brand ambassador.

Jaypee Cement, India’s leading cement brand, has chalked out plans to invest around
Rs 3,500 crore to increase its production capacity in the ongoing financial year.
Meanwhile, the amount is part of the Rs 10,000 crore investment earmarked by Jaypee
Cement for its growth plans. The company, according to its top official, has already
spent Rs 6,000 crore.

“A part of the corpus of money has been raised through foreign currency convertible
bonds (FCCB). The company plans to add 25 million metric tonnes production capacity
by 2011 fiscal-end. Of this, the company will have close to 10 million metric tonnes
cement production capacity by the end of October 2009,”said Manoj Gaur, executive
chairman of Jaypee Group.

At present, the company produces close to 15 million metric tonnes. A large part of the
capacity addition will come through greenfield projects and the rest through acquisitions.
However, Gaur refused to share details on the acquisition plans of the company.

Gaur said that given the current stress on infrastructure and construction business in
smaller cities, the demand for cement is bound to increase in the future. “Our capacity

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addition plans are in tune with this reality.”

Meanwhile, in a bid to promote its cement brand, the company has for the first time
roped in a brand ambassador by signing cricket icon Sachin Tendulkar. Tendulkar will
be the face of the brand through a long-term contract signed by the company. In fact,
even in the face of slowdown, wherein the companies are cutting down on expenditure,
Jaypee Cement to plans to invest over Rs 50 crore to boost its branding positioning this
year.

“We have been seeing growth in our business. And we feel that now is an appropriate
time for us to have a brand ambassador. It is a planned move and will not affect our
costs adversely,” said Gaur. Gaur, however, did not divulge any details about the
endorsement fee of the cricketer, nor did he specify the number of years Tendulkar
would endorse the Jaypee brand of cement.
The company, after its association with Tendulkar, plans to develop a stadium
and also start a cricket academy, said Gaur.

Jaiprakash Associates announces 100.07 % higher turnover for Q3FY10

PAT (before extraordinary items) for Q3FY10 at Rs 314.96 crore, up 86.79%;
EBIDTA at Rs 889.09 crore, up 116.55%
Financial Performance for Q3FY10
Q3FY10 Results (all comparisons with Q3FY09) Y-o-Y
• Total income at Rs 2967.68 crore, up by 100.07% from Rs 1483.30 crore
• EBIDTA at Rs 889.09 crore, up by 116.55% from Rs 410.58 crore
• PBT at Rs 502.90 crore, up by 131.28% from Rs217.44 crore
• PAT (before extraordinary items) at Rs 314.96 crore, up 86.79% from Rs 168.62 crore
• EPS at Rs 1.49 per share
• Operating margin of 31.17%
• Cement dispatches(including clinker sale) in Q3FY10 was at 28.64 lac MT up 51.37%
v/s 18.92 lac MT in Q3FY09
Segmental Division Results Highlights – Q3FY10
• Turnover from Cement Division (including cement products) at Rs 948.34 crore v/s Rs
589.63 crore registering growth of 60.83%
• Turnover from Engineering Division (including Real Estate, Hotels, Wind Power) at
Rs 2037.08 crore v/s Rs 830.89crore registering a growth of 145.16%
Highlights
• Commissioning of new 2.4 MTPA cement plant at Sewagram in Kutch, Gujarat
• Company crossed one million tonne mark in cement despatches in November 2009 for
the first time.
• Commissioning of1.75 MnTPA Jaypee Himachal Cement Grinding and Blending plant,
Bagheri,H.P.
• Commissioning of 2.2 MnTPA Bhilai Jaypee Cement Ltd., Satna (Madhya Pradesh).
• Jaypee Cement announced the commissioning of its state-of-the-art Jaypee Roorkee
Cement Grinding Unit (JRCGU) at Roorkee, Uttarakhand. The unit, with an annual
capacity of 1.2 million tonnes, shall further consolidate the strength of Jaypee Cement in
the markets of Uttarakhand and Western UP.

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• Filed DRHP with SEBI in December 2009 for subsidiary company Jaypee Infratech to
raise upto Rs 1650 crore through fresh issue and Jaypee Associates to offer 6 crore
shares in the IPO
New Delhi, January 18, 2010; Continuing the growth momentum, Jaiprakash
Associates
Limited (JAL), the leading infrastructure conglomerate announced phenomenal growth
in the third quarter ended December 31, 2009.
The total income for Q3FY10 was at Rs 2967.68crore as compared to Rs 1483.30
crore in Q3FY09; an increase of 100.07%. EBIDTA for Q3FY10 stood at Rs 889.09
crore; registering an increase of 116.55% as compared to Rs 410.58 crore in the
corresponding previous period. Net profit (before extraordinary items) for the Q3FY10
improved to Rs 314.96 crore as against Rs 168.62 crore in Q3FY09, an increase of
86.79%. The earnings per share (EPS) for Q3FY10 stood at Rs 1.49 per share.

Commenting on the Company’s performance for Q3FY10, Mr. Manoj Gaur,

Executive Chairman, Jaiprakash Associates Ltd. said , “The results for the quarter
represent JAL’s strong execution credentials and were mainly led by strong real estate
revenues, growing cement volumes and strong construction revenues. There has been
an upturn in construction activities due to higher spending on infrastructure projects by
the government and the incremental demand coming from rural and semi-urban areas.
We have been constantly adding cement capacities to cater burgeoning demand for
cement products. The judicial blend of real estate products catering to various segments
of society which is a hallmark of Jaypee Group has helped us report remarkable growth
in the real estate segment as well.”
Financial performance for 9MFY10
9MFY10 Results (all comparisons with 9MFY09)
• Total income at Rs 6997.05 crore, up by 75.94% from Rs 3976.74 crore
• EBIDTA at Rs 2024.6 crore, up by 64.5% from Rs 1230.41crore
• PBT at Rs 2160.65 crore, up by 211.17 % from Rs 694.36 crore
• PAT (before extraordinary items) at Rs 1676.33 crore, up 237.15% from Rs 497.2crore
• EPS Basic (before extraordinary items) at Rs 7.97per share
• Operating margin of 30.02%
• Cement dispatches (including clinker sale)in 9MFY10 was at 74.75 lac MT up 37.18 %
v/s 54.49 lac MT in 9MFY09
Segmental Division Results Highlights – 9MFY10
• Turnover from Cement Division (including cement products) at Rs 2741.73crore v/s Rs
1718.41 crore registering growth of 59.55%
• Turnover from Engineering Division (including Real Estate Hotels, Wind Power) at Rs
4280.74 crore v/s Rs 2146.8crore registering a growth of 99.40%
The total income for 9MFY10 was at Rs 6997.05 crore as compared to Rs 3976.74
crore in 9MFY09; an increase of 75.94%. EBIDTA for 9MFY10 stood at Rs 2024.6crore;
registering an increase of 64.5% as compared to Rs 1230.41 crore in the corresponding
previous period. Net profit (before extraordinary items) for the 9MFY10 improved to Rs
1676.33 crore as against Rs 497.20 crore in 9MFY09, an increase of 237.15%. The
basic earnings per share (before extraordinary items) for 9MFY10 stood at Rs 7.97 per
share.

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“Going forward, we remain committed to increase the shareholders wealth and expect
the current quarter to be more robust on account of increase in demand in real estate
sector, capacity expansions in our cements business coupled with good growth
witnessed in last quarter and expect that demand in cement business will grow by 10-
12% in next three months.
The CAGR of JAL’s cement division has been tremendous and it gives me immense
pleasure to reiterate the fact that JAL would be achieving one of the highest organic
growths in cement industry in the country. In FY 08 we had total installed capacity of 9
MTPA and we are poised to take the same to 35.55 MTPA by FY12 with an aim to
achieve combined cement capacity of 22.80 MTPA by the end of the current fiscal”,
added Mr. Gaur.
He further said that, “JAL has an excellent employee care programme which has made
JAL
a unique company. Starting from 1986 employees have been made stakeholders in
growth
of the company & between 2002-2009 various ESPS programmes have helped JAL
achieve
an employee attrition rate of below 1%, perhaps unparallel in the country. The last such
initiative helped more than 11,000 employees, when 1.25 crore shares (pre bonus) were
allotted at Rs.60 per share.

Broad outlook

India’s strong consistent economic growth and infrastructure development has provided
JAL with tremendous opportunities in Engineering & Construction where the company
has an established track record as the leading hydropower E&C Company with clear
competitive advantage and has immense growth potential in Indian hydropower while in
power business; it will be the only group in the private sector which will contribute 2200
MW in the 11th five year plan to the nation. The group intends to take its total capacity
to over 13,470 MW by 2018 with 60:40 thermal-hydro mix. Its 300 MW Baspa II HEP
(Hydro-electric project) in Himachal Pradesh and 400 MW Vishnuprayag HEP in
Uttarakhand are successfully doing the same. Work on the group’s 1000 MW Karcham-
Wangtoo project is progressing on fast track basis with the project slated for
commissioning six months ahead of schedule.
In Expressway segment, construction work on entire 165 km of the Yamuna
Expressway project is in progress and the project is scheduled to be completed by
2011.
In cements business with new cement plants in fast growing markets of the North,
Central, Eastern & Western Zones, JAL is the 3rd largest cement group in India with
dominance as low cost producer of cement. The company is in final stage of capacity
expansions in cements business and expects to have combined cement capacity of
22.80 MTPA by the end of the current fiscal with 252 MW captive power plants.
With all the above, Jaiprakash Associates Limited is well set to become the leader in the
businesses of power, cement and real estate in India. JAL has the strongest credentials
when it comes to project execution, building new capacities, be it hydropower or cement
and has consistently delivered in enhancing shareholder value.

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3. OBECTIVE

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JAYPEE CEMENT Summer Project

 To do Brand Promotion for the company.

 To increase sale of JAYPEE cement.
 To collect the informations of other cement companies to improve
JAYPEE cement.
 To do survey

4. LIMITATIONS

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JAYPEE CEMENT Summer Project

 The study have been completed in 60 days. This is not sufficient to do a survey
in the district Haridwar.
 The responded met approximately 300; the study may not be applicable to the
total market.
 The facts and figures may not be accurate.
 As the market being very huge it was not possible to cover each and every area.

5. RESEARCH METHODOLOGY

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JAYPEE CEMENT Summer Project

A structured questionnaire was used to collect the primary data. The questionnaire
consist of dichotomous response format questions(Yes/No questions) and also some
explanatory answers’ questions.Sample unit consist of

Secondary data has been collected from journals, magazines, internet. The primary
data was analyzed using simple percentages, and inferences were drawn.

5.1 QUESTIONAIRE

1.Are you using or going to use any kind of cement?

2.Which kind of cement are you using right now?

.Ordenary Portland Cement (OPC)

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.Portland Pozolana Cement (PPC)

3.If you are using cement then are you satisfied?

4.Are you getting free any technical advice or training?

5.Have you any complain till now?

6.Are you satisfied with there prices and quality?

7.Do you have any requirement right now?

8.If you have so is it easy to use?

9. Do you have any suggestion?

5.2 DATA ANALYSIS

These given below facts and figures are based on the survey done, ie. on the basis of
questions asked to the respondents.

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JAYPEE CEMENT Summer Project

Name of No. of users

company
JAYPEE 90
ACC 105
Ultra tech 46
Binani 30
Others 29

Below given pie reflect the figures of user in particular area.

No. of users

jaypee
ACC
Ultra tech
Binani
Others

The chart showing the no. of users.

The survey also shows the detail of customers responses (quality&prices) towards
different cement companies, which is ranked accordingly in table given below

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JAYPEE CEMENT Summer Project

1st JAYPEE
2nd ACC
3rd Ultratech
4th Binani
5th Others

These ranks are given according to the preference of customers on basis of price and
quality, in the region project t(SIP) done.

5.3 INTERPRETATION

The JAYPEE cement is doing well from plant Roorkee production wise and distribution
wise, table given below justify the statement

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JAYPEE CEMENT Summer Project

year JAYPEE Clinker Total Sp. Heat Sp.Electrical Conversio

Different Cement Consumptio Energy n Factor
plants Productio n Consumption
n (MTPA) Productio (Net Basis) , kWh/t of
n (MTPA) Kcal/Kg of CEMENT
Clk.
2009 Roorkee 0.114 57.07 .0.77
-10
2009 Sidhi 1.166 .405 751.42 67.02 .7800
-10
2009 Gujrat .069 54.34 .7936
-10
2009 Mirzapur 1.702 43.91 .7129
-10
2009 Sonebhadr 1.373 .146 804 86.79 .7287
-10 a
2009 Tanda 1.032 30.75 .686
-10
2009 Bela 2.042 2.387 692 63.7 .801
-10

JAYPEE is the 2nd preference among the people of the project region, also it Rookee
is among the 3rd largest producer of cement among the given plant of JAYPEE cements
plants.

6. REVIEW OF THE LITERATURE

Many surveys have been done earlier, which shows the growth and future prospects of
the cement companies. The demand drivers for the cement sector continue to be
housing, infrastructure and commercial construction, etc. We expect the proportion of
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infrastructure in total demand to improve further in future, as the thrust on infrastructure

development is on the rise. During April-November 2007, cement demand grew by 10
per cent year- on-year (y-o-y) propelled by the growth witnessed in end user segments
such as housing, infrastructure etc. CRISIL Research expects demand to remain strong
and grow by over 12 per cent in the next 2 years. Cement demand is expected to
outstrip supply for the next year and a half as no major capacities are coming on-
stream, thus providing enough flexibility to cement manufacturers to further hike
the prices.
Today, cement from Andhra is going all over India, including Assam, Meghalaya,
Jharkhand, Orissa, West Bengal, Chattisgarh, Gujarat and Maharashtra. More cement
is likely to flow into Tamil Nadu from the state in view of cut in sales tax. Any further
increase in demand in the South India will benefit the cement industry here .

Here also given tha data showing total demand and supply dynamics for the cement
companies.

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JAYPEE CEMENT Summer Project

mm tones 2002 2003 2004 2005 2006 2007 2008 2009

Total capacity 129. 137 144.4 151. 159.6 166.7 182. 221.1
8 6 8
Effective capacity 123. 130.2 137.6 144. 153 159.7 175. 214.1
8 8 7
Total dispatch 102 111.4 117.4 128. 141.8 155 169. 185
6 4
%growth - 9.2 5.4 9.3 10.3 9.3 9.3 9.2
Total consumption 99 107.6 113.8 123. 135.5 148.7 163. 178.7
1 1
%growth - 8.7 5.8 8.2 10.1 9.7 9.7 9.6
Total expenditure 3.4 3.3 3.4 4.1 6 6.4 6.6 6.3
Capacity 82.4 85.6 85.3 88.8 92.7 97.1 96.4 86.4
utilization

Overview
• The Company is one of India’s leading cement manufacturers and according to
statistics published by the Cement Manufacturers Association (“CMA”) in March 2009
the Company is the eighth largest producer of cement in India. Its cement division has
three modern, computerised process control cement plants with an aggregate installed
capacity of 5.4 million MTPA located at Rewa in Madhya Pradesh, the largest single
cement complex in India. In addition, the Company has a blending unit with a capacity
of 0.6 million MTPA at Sadva Khurd in Allahabad District and a grinding unit with a
capacity of 1.0 million MTPA at Tanda in Uttar Pradesh. The Company in Feb/March
2008 has commissioned 1.0 million MTPA at Chunar and Dalla (Phase I) in Uttar
Pradesh and 1.5 million MTPA at Panipat in Haryana. Company also added 2.0 MTPA
integrated capacity plant at Sidhi in Madhya Pradesh, 1.20 MTPA capacity plant in
Gujarat and another 2.0 MTPA capacity integrated plant in UP taking the aggregate
capacity to 14.70 million MTPA in March 2009.
• Consolidated total income of the Group contributed by the cement business amounted
to Rs. 2,439 crores in the year ended 31 March 2009, compared with Rs. 2,069 crores
in the year ended 31 March 2008 (in each case net of excise duties including inter
segment revenue).
Manufacturing Facilities
• References in this document to plant or production capacity are to rated (or installed)
production capacity; that is, the production capacity the relevant plant was designed to
14 achieve based on specified operating parameters, relating, inter alia, to quality of
coal and limestone. Accordingly it is possible in certain circumstances to achieve actual
production in excess of rated (or installed) capacity.
Jaypee Rewa Plant
• Jaypee Rewa Plant has two units with an aggregate capacity of 3.0 million MTPA.
Unit-I has a capacity of 1.5 million MTPA and was commissioned in 1986 and Unit-II,
which was commissioned in 1991, has a capacity of 1.5 million MTPA.

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Jaypee Bela Plant

• Jaypee Bela Plant has a capacity of 2.40 million MTPA and was commissioned in
1996.
A grinding unit with a capacity of 1.0 million MTPA was set up at Tanda, Uttar Pradesh
in October 2004.

Jaypee Cement Blending Unit, Sadva Khurd, Allahabad Uttar Pradesh

• This is a blending unit of 0.6 million MT capacity, the first of its kind in India. Ordinary
Portland cement manufactured at Jaypee Rewa Plant is transported by tankers to this
unit where fly ash procured from National Thermal Power Corporation Limited
(“NTPC”), Unchahar is blended with the Ordinary Portland Cement to manufacture
Pozolona Portland Cement.

Jaypee Ayodhya Grinding Operations, Tanda, Uttar Pradesh

• This fly ash pit head based grinding unit has the capacity to produce 1.0 million MT of
cement per annum for which clinker is transported by rail/road from Jaypee Rewa Plant
while the fly ash is sourced from NTPC’s thermal plant located at Tanda itself. This unit,
which is located in the Natural Marketing Zone (“NMZ”) of the cement division of the
Company, is in a position to take advantage of the logistic benefit of its proximity to the
market and source of supply of fly ash resulting in savings in the overall transportation
cost of cement and fly ash. Further, the cement grinding mill at this unit, which is a
vertical roller mill, consumes substantially less power (28 Kwh) than ball mills (38 Kwh).

Jaypee Sidhi Cement plant in the State of Madhya Pradesh

• In Central India, the Company has set up Jaypee Sidhi Cement plant in the State of
Madhya Pradesh with installed capacity of 2 million MT along with a 35 MW captive
power plant.
The UP Cement project is the only integrated cement plant in the heavily populated
state of Uttar Pradesh based on the only available limestone reserves in the State. This
project is entitled to the following incentives:
sales tax exemption for 10 years;
10-year exemption from payment of royalty; and
10-year exemption from electricity duty on power generated from captive power plants .

Jaypee Gujarat Cement plant

• The Company has set up 1.20 MTPA cement plant and is currently in the process of
setting up new cement capacities amounting to 3.60 million MTPA in Western India
15 (Gujarat) taking the installed capacity of the Company in the Western Region by
2010

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to approximately 4.80 MTPA. While the Company will be setting up 90 MW of captive

power plants for its cement operations in Western India, it will also be benefited through
the availability of lignite (fuel for captive power plants and kilns) in the vicinity and
creation of a captive jetty which will help it to tap the cement export market.

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9. RECOMMENDATIONS

1. Technical advice should be given to the dealers & end users.

2. The company should focus on retention of customers because getting a new

customer is more costly.

3. Distribution channel should be more effective.

4. The company should improve quality of service and the marketing strategies in
terms of advertising so that the awareness of brand level can be increased in market.

5. Company should be more focus on promotional activities eg. Advertisements,

offers.

6.Company should not rush for cost cutting.

7. Company should make more consignee and dealers,to mark presence in market
more deeper.

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10. REFERENCES

 Research Methodology By C.R Kothari

 www.indiacement.com
 www.jaypeecement.com
 www.google.com
 www.jaypeegroup.com
 www.scribd.com
 www.scribd.com
 www.wikipedia.com

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