SlideShare a Scribd company logo
1 of 41
JAYPEE CEMENT LTD.




Group 7
Table of Contents


Executive Summary
1. Company History
2. Industry Structure
3. Environment
4. Products
5. Price
6. Distribution Network
7. Promotion
8. Customer Survey Analysis
9. Suggestions
10. Appendix
a. Sample Dealer Questionnaire
b. Sample Customer Questionnaire
c. Bibliography




Group 7
Executive Summary
The purpose and scope of document is to study, analyze and understand the business and
marketing practices of Jaypee cement. In order to achieve this objective, two stages were
identified –Data collection stage and the Analysis stage.
 The first stage includes the data collected from various sources regarding the following:
    1. The History of the company, its subsidiaries, The board of Directors, Operation units in
        India.
    2. The closest competitors in the cement industry –Binani cement, AMBUJA cement, ACC,
        Grasim, Utratech cement, Lafarge cement.
    3. Information about the 4 P’s of marketing – Product, Price, Place and Promotion in the
        Punjab market.
    4. A customer and dealer survey in Punjab to understand their decision making Process.

The analysis stage includes understanding the implications and relevance of the data collected
and drawing conclusions about the company’s business and marketing decisions .The Indian
Cement industry is mainly divided into two segments – House Hold Cement Segment and
Industrial Cement Segment. Jaypee Cement being used in the construction of large dams and
hydro electric power projects like the Tehri Dam in Uttarakhand, Dul Hasti and Baglihar
projects in J&K, Indra sagar dam in M.P, Teesta-V project in Sikkim, Baspa-ll, Nathpa Jhakri and
Chamera-ll projects in H.P, Tala project in Bhutan, Karcham-Wangtoo Project in H.P, Sardar
Sarovar Project in Gujrat, Omkareshwar Hydro Electric Project in M.P and Vishnuprayag Project
in Uttarakhand

Known for its innovative marketing and distribution strength the company is one of the
consistent performers in the Indian scene. The company has a track record of profitability,
transparency in operations. Factors that have been given emphasis here include the low per
capita consumption of cement .The impact of recent issues & trends (like raw material costs,
excise duty rationalizations, quality consciousness in user segments) on the industry dynamics
can also be seen. Cement consumption has been growing at a CAGR of over 8% p.a. in the last
five years and this trend is likely to continue in the coming years.

At present industry requires highest efficiency in physical distribution as companies not
working on operational efficiency business models. Companies need to work on improving
internal efficiencies to retain profits which are under pressure on account of dropping prices.
The customer (retailer for the company) is seen to be dictating terms so companies have no
choice but to lure more customers through incentives. At the same time, companies also need to
attract final consumers by offering value-added services. So we came up with the following
recommendations: To take up trade promotions, to build up relations with the intermediaries, a
need to improve current inventory levels to cut down costs, a need to promote awareness
among the customers, improve advertising strategies and a need to expand in industrial
segment by forming strategic partnerships to take advantage of the upcoming industrial growth
at national and regional levels.




Group 7
1. Company History




                                SHRI JAIPRAKASH GAUR JI
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 engineerig 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 buliding. 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 Ypung 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 15,000 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 up Jaiprakash Sewa Sansthan (JSS), a ‘not-for-profit trust’ which primarily serves the
objectives of socio-economic development,reducing the pain and distress in society




Group 7
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 Group’s 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 Balwadi’s for young boys and girls, safe drinking water supply,
creating huge water reservoirs in different villages, self employment which includes tailoring
classes for women 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 the Satna 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 22.80 MnTPA. 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.

JayPee is the largest Cement producer in the state of Uttar Pradesh. For optimizing cost of
power, 100% of the power requirement of cement plants are being sourced through captive
thermal power plants.(MP-123MW, UP-65 MW, HP-30 MW and Gujrat-85 MW ). Jaypee Cement
being used in the construction of large dams and hydro electric power projects like the Tehri
Dam in Uttarakhand, Dul Hasti and Baglihar projects in J&K, Indra sagar dam in M.P, Teesta-V
project in Sikkim, Baspa-ll, Nathpa Jhakri and Chamera-ll projects in H.P, Tala project in Bhutan,
Karcham-Wangtoo Project in H.P, Sardar Sarovar Project in Gujrat, Omkareshwar Hydro Electric
Project in M.P and Vishnuprayag Project in Uttarakhand. List of prestigious clients include
Reliance Energy, NTPC, NHPC, GAIL, DMRC, IOC, NFL, Indian Railways, DIAL, L&T, Gammon,
HCC, Som Datt Builders. IRCON, UPSBC, Hindalco, GMR, OSEL, RIL to name a few. Awarded with
"National Safety Award" by the national Safety Council of India for developing and
implementing very effective management systems and procedures and attaining very high
performance levels in occupational safety and health.




Group 7
SUBSIDIARIES
The Jaypee Group operates through its various subsidiaries in different business segments -
Cement and Power Sector.

Jaiprakash Power Ventures Limited (JPVL)
The company with its operational power plants - 300 MW Baspa-II (Himachal Pradesh) and 400
MW Vishnuprayag (Uttarakhand) is India’s largest Private sector Hydropower producer and is
on its way to be an integrated power producer with expansion in Thermal & Power
Transmission.
www.jppowerventures.com

Jaypee Karcham Hydro Corporation Limited (JKHCL)
The Government of Himachal Pradesh again invited the group for the Karcham Wangtoo a 1000
MW project. The group formulated JKHCL for this project. Still under execution, the project is to
commence its operations in the year 2011.

Jaypee Arunachal Power Limited
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.

Bina Power Supply Co. Limited
BPSCL, the wholly owned subsidiary of JPVL, is setting up a Coal based Thermal Power Plant of
500 MW (2x250 MW) in the first phase against the total proposed capacity of 1500 MW at Bina,
Distt. Sagar, MP.

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.
www.jaypeepowergrid.com

Bhilai Jaypee Cement Limited (BJCL)
Incorporated in the state of Chhattisgarh as a Joint Venture with Steel Authority of India Ltd.
(SAIL). The said company is to produce a 2.2 MTPA split-located Cement Plant at Bhilai in the
State of Chattisgarh and at Babupur, Satna in the State of Madhya Pradesh.
www.bjcl.co.in

Gujarat Jaypee Cement & Infrastructure Limited (GJCIL)
The Group has signed an Agreement with Gujarat Mineral Development Corporation Limited
(GMDCL) for setting up of a 2.4 MTPA capacity cement manufacturing plant with captive power
station and captive Jetty in district Kutch of 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.

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.




Group 7
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 connecting Noida with Agra.
www.jaypeeinfratech.com

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.
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.
www.jaypeesports.com

Sangam Power Generation Co. Ltd. (SPGCL) & Prayagraj Power Generation Co. Ltd. (PPGCL).
Two super critical technology boiler based Thermal Power Projects are being implemented by
Jaiprakash Power Ventures Ltd. (JPVL), a subsidiary of your Company. 1980 MW Karchana
Thermal Power Project in Tehsil Karchana of Allahabad District is being implemented by
Sangam Power Generation Company Ltd. (SPGCL) and 3300 MW Bara Thermal Power Project in
Tehsil Bara of Allahabad Distt is being implemented by Prayagraj Power Generation Company
Ltd. (PPGCL).

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 Km

BOARD OF DIRECTORS
The Board of Directors of the company have envisioned the organisation to new heights. The
company is well managed under the foray of these individuals:

   Shri Manoj Gaur, Executive Chairman & CEO   Dr. J N Gupta
   Shri Sunil Kumar Sharma, Executive Vice
                                               Shri M S Srivastava
   Chairman
   Shri S K Jain, Vice Chairman                Shri Sunny Gaur, Managing Director (Cement)
   Shri R N Bhardwaj                           Shri Pankaj Gaur, Jt. Managing Director (Constn.)
   Shri A K Sahoo (LIC Nominee)                Shri R K Singh (Whole-time)
   Shri B K Goswami                            Shri Ranvijay Singh (Whole-time)
   Shri B K Taparia                            Shri S.D. Nailwal (Whole-time)
   Dr. B Samal                                 Shri Rahul Kumar (Whole-time Director & CFO)
   Shri Viney Kumar (IDBI Nominee)             Shri V K Chopra
   Shri S C Bhargava                           Shri S C Gupta




Group 7
PRESENCE ACROSS INDIA
With its solitary Mission is to achieve Excellence in every sector that the group operate in - be it
Engineering & Construction, Cement, Real Estate or Consultancy, the Jaypee Group has marked
its presence all over the nation overtaking the obstacles in path of achievement . The group has
not only obtained sustainable development but also enhanced the shareholders value and
fulfilled obligations towards building a better India.




Group 7
ACHIEVEMENTS FOR THE YEAR 2010

  Jaypee Rewa Cement Plant and Jaype Bela Cement Plant in Madhya Pradesh of the Group
  have been awarded with renowned and most prestigious “SWORD OF HONOUR” award by
  the British Safety Council, UK. This is a well acclaimed and celebrated international award in
  the field of Health and Safety management system. 3.00 MnTPA Rewa and 2.40 MnTPA Bela
  are the only cement plants to be bestowed with this honour in India.(For Details)



  The garbage processing plant of Jaiprakash Associates Ltd. located in Dadumajra, Chandigarh
  was awarded “Excellence for the best solid waste management plant in the country” by
  Confederation of Indian Industry (CII).


  "Lifetime Achievement Award" being conferred to Shri Jaiprakash Gaur, Founder Chairman
  by Merchants’ Chamber of Uttar Pradesh, Kanpur for creating new milestones in
  Infrastructure development and his achievement in Corporate Social Responsibility for the
  year 2010.

  “Infrastructure Leader of the Year ” award being conferred to Shri Jaiprakash Gaur, Founder
  Chairman by Shri Kamal Nath, the Union Minister of Road Transport and Highways during
  the Essar Steel Infrastructure Excellence Awards 2010 in association with CNBC TV18.


  400 MW Vishnuprayag Hydropower Project of Jaiprakash Power Ventures Ltd (JPVL) was
  awarded 1st Prize in the category “Energy & Power’’ by the Essar Steel Infrastructure
  Excellence Awards 2010 in association with CNBC TV18.


  300 MW Baspa – II Hydropower project being awarded with “Silver Shield” by Shri Sushil
  Kumar Shinde, Union Minister of Power along with Shri Bharatsinh Solanki, Union Minister of
  State for Power in the prestigious National Awards for Meritorious Performance in Power
  Sector by the Ministry of Power for 2008-09.




SWORD OF HONOUR




 Based on the OH&S performance and 5 Star Rating, both the units, Jaypee Rewa Plant and Jaypee Bela Plant, have been
 awarded with the most prestigious and renowned Sword of Honour by British Safety Council, UK. The Sword of Honour is
 the most prestigious international health and safety honour that a company can receive, and it is designed to encourage
and reward organisations that abide to best practices. Each year only 40 organisations around the world are awarded with
                                               the Sword of Honour Award.




Group 7
CERTIFICATIONS
ISO 9001 : 2008
Jaiprakash Associates Ltd.is ISO 9001 : 2008 certified company, Accredited by UKAS and
NABCB. The scope of certification covers processes for Business Development, for
Infrastructure projects and Civil and Hydro – Mechanical works of Hydro – Electric Projects,
Design and Engineering for Civil and Hydro Mechanical works of Hydro – Electric Projects
facilitating and supporting execution of Projects by providing the required resources, Contract
Management and interaction with the clients. These processes are monitored, measured and
analyzed for identifying needs for continual improvement.




Group 7
Jaypee Rewa Plant, Jaypeenagar ( Unit of Jaiprakash Associates Limited) been awarded Five Star
Rating by the British Safety Council, London, U.K. for Health and Safety Management System.




Jaypee Bela Plant, Jaypeepuram (Unit of Jaiprakash Associates Limited) been awarded Five Star
Rating by the British Safety Council, London,U.K.for Health and Safety Management System.




Group 7
2. Industry Structure
   Today, India is the world’s largest, non-Chinese cement market and has seen strong growth
   over the years. Today, India is home to several large cement manufacturers that continue
   making their way to become part of the global production league tables and the trajectory is
   widely expected to continue.

   But, the history of the cement industry in India dates back to the 1889 when a Kolkata-
   based company started manufacturing cement from Argillaceous. But the industry started
   getting the organized shape in the early 1900s. In 1914, India Cement Company Ltd was
   established in Porbandar with a capacity of 10,000 tons and production of 1000 installed.
   The World War I gave the first initial thrust to the cement industry in India and the industry
   started growing at a fast rate in terms of production, manufacturing units, and installed
   capacity. This stage was referred to as the Nascent Stage of Indian Cement Company. In
   1927, Concrete Association of India was set up to create public awareness on the utility of
   cement as well as to propagate cement consumption.

   The cement industry in India saw the price and distribution control system in the year
   1956, established to ensure fair price model for consumers as well as manufacturers. Later
   in 1977, government authorized new manufacturing units (as well as existing units going
   for capacity enhancement) to put a higher price tag for their products. A couple of years
   later, government introduced a three-tier pricing system with different pricing on cement
   produced in high, medium and low cost plants.

   Cement Company, in any country, plays a major role in the growth of the nation. Cement
   industry in India was under full control and supervision of the government. However, it got
   relief at a large extent after the economic reform. But government interference, especially
   in the pricing, is still evident in India. In spite of being the second largest cement producer
   in the world, India falls in the list of lowest per capita consumption of cement with 125 kg.
   The reason behind this is the poor rural people who mostly live in mud huts and cannot
   afford to have the commodity. Despite the fact, the demand and supply of cement in India
   has grown up. In a fast developing economy like India, there is always large possibility of
   expansion of cement industry.

   Total cement production in world, in year 2010 was 3325 million tonnes³, with China being
   the leading producer followed by India.
   • China: 1800 million metric tonnes (54.13 %)
   • India: 220 million metric tonnes (6.61%)
   • US: 63.5 million metric tonnes (1.9%)
   • Other countries: 1241.5 million metric tonnes (37.33%)

                       Cement production worldwide

                                                                     China
                                                                     India
                                                                     U.S
                                                                     Others




Group 7
Cement Production & Dispatches

Indian Cement industry is comprised of 148 large cement plants with around 46 member
companies and more than 300 mini plants. The installed capacity of these large cement plants is
estimated to be 219.17 million tonne during 2009-10 (as on March 2009) where majority of the
production of cement (94%) in the country is by large plants.

There are 95 large cement plants with capacity of of million tonnes and above and around 1,
40,000 manpower is employed under these. Also, there are 365 mini and white cement plants
with an installed capacity of 11.10 million tonne

                                                               2010-
                                           Dec-                         2009-10
            Description         Jan-11              Jan-10     11
                                           10
                                                                    (Apr-Jan)
            Cement
                                14.52      13.59    14.65      136.51 130.85
            Production
            Cement
                                14.47      13.60    14.59      135.56 130.09
            Despatches


Growth Perspective

In general, the optimism is expected to continue over the coming year. 50 percent of the sample
expect an improvement, 40 percent expect it to be much the same and the balance expect a
small decline in performance.




Equipment manufacturing companies were more optimistic than the rest of the sector, perhaps
in part as they were reflecting the optimism of the recent and sustained growth in capital
expenditure. Overall 83 percent of equipment vendors believed that future performance would
be 'much' or 'somewhat' better in the coming year. In turn, 57 percent of analysts held this view
(and a further 30 percent expected performance to be 'much the same’). 45 percent of
manufacturers and 37 percent of cement traders expected the next 12 months to be 'somewhat'
or 'much' better. This response may reflect position in the production chain with cement traders
being closer to the consumer market and identifying potential changes in demand while
equipment suppliers are responding to existing demand for additional capital from the
manufacturers.


Group 7
One area where there is fewer consensuses was the future trend for input costs. Around 43
percent believed this would change for the better, 33 percent that it would stay the same and 24
percent that input costs would increase.




Contribution by states

Among the states, Maharashtra has the highest share in consumption at 12.18 % followed by
Uttar Pradesh.

In production terms, Andhra Pradesh is leading with 14.72% of total production followed by
Rajasthan.



Major brands

Since cement is a high bulk and low value commodity, competition is also localized because the
cost of transportation of cement to distant markets often results in the product being
uncompetitive in those markets.

There are a number of players prevailing in the cement industry in India. However, there are
around 20 big names that account for more than 70% of the total cement production in India.




Group 7
Few of which are as follows:

   1. ACC
   2. Gujarat Ambuja
   3. Jaypee Group
   4. Ultratech
   5. Grasim
   6. India Cements
   7. JK Group

Mergers and Recent Investments

       Gujarat Ambuja taking a stake of 14 per cent in ACC, and taking over DLF Cements and
       Modi Cement.
       ACC taking over IDCOL.
       India Cement taking over Raasi Cement and Sri Vishnu Cement.
       Grasim's acquisition of the cement business of L&T.
       Swiss cement major Holcim has picked up 14.8 per cent of the promoters' stake in
       Gujarat Ambuja Cements (GACL).
       Holcim's acquisition has led to the emergence of two major groups in the Indian cement
       industry, the Holcim-ACC-Gujarat Ambuja Cements combine and the Aditya Birla group
       through Grasim Industries and Ultratech Cement.
       Lafarge, the French cement major has acquired the cement plants of Raymond and
       TiscoRama Cement.

Overall, the industry remains optimistic about the immediate future and is aware of the
potential impact of more rigorous environmental regulations in the coming years. Broadly,
these opinions are shared across the geographical and functional spread of the industry. The
main differences are expectations of cost increases for the large part of the industry based in
Western India and that equipment manufactures remain the most optimistic about growth
prospects in the coming year.



3. Environment
    The chief competitors to Jaypee Cement are – UltraTech Cement, ACC Cement, Binani
    Cement and Prism Cement. In order to understand the environment, we need to look at
    each of the Competitors.

    UltraTech Cement: UltraTech Cement Limited has an annual capacity of 52 million
    tonnes. It manufactures and markets Ordinary Portland Cement, Portland Blast Furnace
    Slag Cement and Portland Pozzalana Cement. It also manufactures ready mix concrete
    (RMC). The company has 11 integrated plants, one white cement plant, one clinkerisation
    plant in UAE, 15 grinding units – 11 in India, 2 in UAE, one in Bahrain and Bangladesh
    each and five terminals — four in India and one in Sri Lanka.



Group 7
UltraTech Cement is the country’s largest exporter of cement clinker. The export markets
   span countries around the Indian Ocean, Africa, Europe and the Middle East. UltraTech's
   subsidiaries are Dakshin Cements Limited, Harish Cements Limited, UltraTech Ceylinco (P)
   Limited and UltraTech Cement Middle East Investments Limited.

   ACC Cement: ACC Limited is India’s foremost manufacturer of cement and ready mix
   concrete with a countrywide network of factories and marketing offices. Established in
   1936, ACC has been a pioneer and trend-setter in cement and concrete technology. ACC’s
   brand name is synonymous with cement and enjoys a high level of equity in the Indian
   market.
   It is the only cement company that figures in the list of Consumer Super Brands of India.
   Among the first companies in India to include commitment to environment protection as a
   corporate objective, ACC has won several prizes and accolades for environment friendly
   measures taken at its plants and mines. The company has also been felicitated for its acts of
   good corporate citizenship.

   Binani Cement: Binani Cement Limited is the flagship subsidiary of Binani Industries
   Limited (BIL), representing the Braj Binani Group. The cement business started operations
   in 1997, in Sirohi District, Rajasthan with a 1.65 MTPA integrated cement facility and a 25
   MW captive power plant with technological support from F. L. Smidth, Denmark and Larsen
   & Toubro Ltd. The capacity was raised to 2.25 MTPA in 2005 through advanced in-house
   R&D and de-bottlenecking and the Company was also certified to ISO 9001, ISO 14001 and
   OHSAS 18001 within a short span from commencement of operation. This is an
   achievement that clearly illustrates the management's commitment to quality, efficiency,
   environment, health and safety. In 2008, a split-grinding unit at Neem Ka Thana was
   commissioned, boosting the capacity in India to 6.25 MTPA.
   Today, Binani Cement has established itself as one of the top companies in the industry in
   terms of efficiency and performance. What truly sets Binani Cement apart is its clear focus
   on the core attributes of quality, strength and reliability of the end product. These have paid
   rich dividends and seen brand 'Binani' growing in prominence and stature, poised to
   capture increasing market share globally.

   Prism Cement: Prism Cement Limited is an ISO 9001: 2008, ISO 14001: 2004, OHSAS
   18001: 2007 & SA 8000 : 2008 Certified Company. It operates one of the largest single kiln
   cement plants in the country at Satna, Madhya Pradesh. Equipped with state-of-the-art
   machinery and technical support from F.L Smidth & Co A.S Denmark, the world leaders in
   cement technology, Prism Cement has successfully created a niche for itself in the Indian
   cement industry.

   The Company is managed by a focused Board comprising of eminent experts from diverse
   fields ably supported by a professional management team. The Management team ensures
   high levels of transparency, accountability and equity in all facets of the company’s
   operations.




Group 7
4. Products

Jaypee produces a wide variety of cements, which are specifically designed to cater to the
customer’s 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, Cross Belt Expert Analyser using the Prompt
Gamma Neutron Activation Analysis - for the first time in India, X-Ray Fluorescence and X-Ray
Diffraction analysers 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 Cement testing.

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, 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 these states.




Group 7
Qualities of Jaypee Cement PPC

Unmatched characteristics of Jaypee Cement (PPC) which form the basis of sound & durable
               racteristics
construction are:



    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.
                segregated

    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.
                                silica

    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 Cement (PPC) as the
preferred choice of the discerning customer. It is particularly well suited for the tropical climatic
conditions of India.




Group 7
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: 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.


                  Typical Chemical and Physical Properties of Jaypee Cement (OPC-43 Grade)

                                                                                    Requirement of
                         Particulars                     Typical Range
                                                                                    IS: 8112 - 1989

                 CHEMICAL PROPERTIES

 1              Lime Saturation Factor (LSF)               0.88-0.90                  0.66 To 1.02

 2        Alumina to that of Iron oxide Ratio % (A/F)      1.40-1.60                   0.66 Min.

 3             In soluble Residue (% by mass)              1.20-1.60                   3.00 Max.

 4             Magnesium oxide (% by mass)                 2.50-3.20                   6.00 Max.

 5            Sulphuric Anhydride (% by mass)              1.60-1.80                   3.00 Max.

 6           Total Loss On Ignition (% by mass)            1.20-1.60                   5.00 Max.

                                                                                  0.10 Max.(For N.C.)*
 7               Total Chloride ( % by mass)              0.010-0.014
                                                                                  0.05 Max.(For P.C.)*

                  PHYSICAL PROPERTIES

 1                    Fineness (M2/Kg)                      280-300                     225 Min.




Group 7
2                 Setting Time (Minutes)

                            Initial                         120-140                     30 Min.

                             Final                          160-180                    600 Max.

 3                        Expansion

                     Le. Chatelier (mm)                    1.00-2.00                   10.00 Max.

                        Auto clave (%)                     0.10-0.20                    0.8 Max.

 4              Compressive Strength (MPa)

                           3 Days                          32.0-34.0                    23 Min.

                           7 Days                          42.0-44.0                    33 Min.

                           28 Days                         52.0-54.0                         43   in.




     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”.

     Jaypee Cement (OPC-53 S Grade) is also used in heavily loaded or pre stressed structures,
     which are subjected to high dynamic loads due to rapidly moving volumes, be it a train
     passing on the railway sleepers or a great volume of water moving at high speed to
     generate electricity in a penstock
                  Typical Chemical and Physical Properties of Jaypee Cement (OPC-53 Grade)

                                                                                    Requirement of
                         Particulars                     Typical Range
                                                                                    IS: 12269 - 1987

                 CHEMICAL PROPERTIES

 1              Lime Saturation Factor (LSF)               0.90-0.92                  0.66 To 1.02

 2        Alumina to that of Iron oxide Ratio % (A/F)      1.20-1.40                   0.66 Min.




Group 7
3         In soluble Residue (% by mass)       1.0-1.20          3.00 Max.

 4          Magnesium oxide (% by mass)         3.0-3.50          6.00 Max.

 5        Sulphuric Anhydride (% by mass)       1.80-2.00         3.00 Max.

 6        Total Loss On Ignition (% by mass)    1.0-1.20          4.00 Max.

                                                             0.10 Max.(For N.C.)*
 7           Total Chloride ( % by mass)       0.010-0.014
                                                             0.05 Max.(For P.C.)*

              PHYSICAL PROPERTIES

 1                Fineness (M2/Kg)              320-340           225 Min.

 2             Setting Time (Minutes)

                        Initial                 110-120            30 Min.

                        Final                   150-180           600 Max.

 3                   Expansion

                 Le. Chatelier (mm)             1.00-2.00        10.00 Max.

                   Auto clave (%)               0.10-0.15         0.8 Max.

 4          Compressive Strength (MPa)

                       3 Days                   40.0-42.0          27 Min.

                       7 Days                   49.0-50.0          37 Min.

                      28 Days                   60.0-62.0          53 Min.




Group 7
5. Price
 In Cement industry price is used only as a differentiator between the 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 also varies with the order placed by the
 customer i.e order placed by him is in trade or in non- trade. 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 prices is
 affected across 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 Mt. of the sales to the Sales Organiser for
 promoting the sales in his region. Due to internal competition, the dealers pass on this
 advantage to the customers by reducing their own margins to 2- 3%. This is a cause of concern
 for the cement companies because they have to keep a constant check on the prices offered in
 the market. The dealers offer more of discounts and the companies are not able to firm up the
 prices. Cement companies offer a lot of discounts like cash discounts, volume discounts,
 seasonal discounts, foreign tours and allowances to dealers for promoting healthy sales. The
 dealers take advantage of these discounts to gather more business.

As above Jaypee produces a wide variety of cements, which are specifically designed to cater to
the customer’s 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 basics prices for different brands of JAYPEE CEMENT from the dealer of Madhya Pradesh
(Indore) are given below:

        JAYPEE CEMENT (PPC) PPC stands for PORTLAND POZZOLANA CEMENT




                 Price of Jaypee Cement (PPC) contains 50 kgs is INR 300 per bag.


Jaypee Cement (OPC-43 Grade)                         Jaypee Cement (OPC-53 Grade)
OPC stands for Ordinary Portland Cement




Price of Jaypee Cement (OPC-43 Grade)                             INR 290 Per bag
contains 50 kgs is INR 285 per bag.



Group 7
6. 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 all the 156 points of cement distribution in order to ensure “track – the – truck” initiative
and provide seamless integration. This initiative is the first of its kind in the cement industry in
India.

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 2011, along with Captive
Thermal Power Plants (CPPs) totalling 375 MW.

Now the Group have 12 Integrated Cement Plants supported by 375 MW of captive thermal
power, 9 split location plants, 11 Railway sidings and a jetty, giving the Group a pan-India
presence in the cement sector.

Geographical Spread of the Jaypee Cement




Group 7
Jaypee Rewa Plant (JRP)                  Jaypee Bela Plant (JBP)
Jaypee Nagar P.O. Jaypee Nagar           Jaypee Puram P.O. Jaypee Puram
Rewa 486450 (M.P)                        Rewa 486450 (M.P)
Tel : (07662) 400700, 229601-09          Tel : (07662) 409301
Fax : (07662) 229218                     Fax : (07662) 229662
CAPACITY – 3.0 MTPA                      CAPACITY – 2.4 MTPA

Jaypee Cement Blending Unit (JCBU)       Jaypee Ayodhya Grinding Operations (JAAGO)
Village-Sadwa Khurd, Paragana Arail      P.O Husainpur Sudhana, Village Khanaura
Tehsil-Bara, Distt. Allahabad (U.P.)     Teh : Tanda, Distt. Ambedkar Nagar (U.P)
Phone: (0532) 2425012                    Phone: (05273) 284809, 281020, 281015
Mob: 09956290958                         Fax : (05273) 284609
Mob: 09935522345                         CAPACITY – 1.0 MTPA
CAPACITY – 0.6 MTPA

Dalla Cement Factory (DCF)               Chunar Cement Factory (CCF)
(A Unit Of Jaiprakash Associates Ltd.)   (A Unit Of U.P Cement Plant)
S.H.5,Kota, PO: Dalla, Sonebhadra(UP)    P.O. Chunar, Mirzapur (U.P)-231311
Phone : (05445) 265778, 265801           Tel: (05443) 222926, 222265, 222602
Fax : (05445) 265776                     Fax:(05443) 225079
CAPACITY – 0.5 MTPA                      CAPACITY – 2.5 MTPA

Jaypee Cement Grinding Unit (JCGU)       Jaypee Himachal Cement Blending Unit
Village Khukhrana, P.O: Asan Kala,       (JHCBU)
Teh: Madlauda                            Vill. – Tikari (Pandiyana)
Distt.Panipat (Haryana)                  P.O. – Khilian, Tehsil – Nalagarh,
Phone: (0180) 2566811                    Solan (H.P.)-174101
Phone: (0180)2566812                     Phone: (01795) 229100, 266937,266934
Fax: (0180) 2566164                      Fax: (01795) 266935
CAPACITY – 1.5 MTPA                      CAPACITY – 2.5 MTPA

Jaypee Sidhi Cement Plant (JSCP)         Gujarat Anjan Cement Limited (GACL)
Jaypee Vihar, Majhigawan                 “Sewagram” Vill. Vayor, Taluka – Abdasa
P.O. Bharatpur, Sidhi – 486776           Distt.. Kutchh (Bhuj), Gujarat – 370511
Phone: (07802) 276701 - 276714           Phone: (02831) 279200
Fax: (07802) 276715                      Fax : (02831) 279279
CAPACITY – 2.0 MTPA                      CAPACITY – 2.4 MTPA




Group 7
Regional Marketing Offices




Group 7
North Zone

          Chandigarh                               Panipat
          Sco no. 407-408,                         Village Khukhrana, P.O. Asan Kalan,
          1st Floor, above City Financial Bank,    Teh : Madlauda,
          Sector 35C, Chandigarh                   Distt. Panipat - 132103 (Haryana)
          Tel: (0172) 4343100, 4343115             Tel: (0180) 2520160
          FAX: (0172) 4343116                      FAX: (0180) 2520100


          Shimla
          Jaiprakash Associates Ltd. Magad
          (Khasra No-104/549 Upmohal)
          Shiv Nagar, Kasumti
          Shimla - 171009




East Zone

          Raipur                                      Nagpur
          Bhilai Jaypee Cement Ltd.,                  F4 Achraj Tower –II,
          Magneto, The Mall 6th Floor, Labhandi,      Chaoni, Sadar,
          G. E. Road,                                 Nagpur 440013
          Raipur - 492010 (C.G.)                      Tel: (0712) 2582242 – 43


          Orissa                                      Patna
          M/s Ganpati Marketing,                      5th Floor, Ashiana Chambers,
          “Aurashree” 13-14 Govind Vihar,             Exhibition Road,
          Bomikhal,                                   Patna-800001(Bihar)
          Bhubaneswar – 751010                        Tel: (0612) 2501089, 2500236,
          Mobile: +91 9674441380                      2501167
                                                      Fax: (0612) 2224497




          Ranchi                                      West Bengal
          Rukmani Tower, 2nd Floor,                   L&T Chambers, 5th Floor,
          Near Gaushala, Harmu Bypass Road,           Unit 502, 16, Camac Street,
          Ranchi – 834001 (Jharkhand)                 Kolkata - 700017 (W.B.)
          Tel: (0651)-2280070, 2280039                Tel: (033) 22895103 – 06
                                                      Fax: (033) 22895107




Group 7
West Zone

          Ahmedabad                                Mumbai
          Jaiprakash Associates Limited,           Office no. 218, Vashi Infotech Park,
          B/2, Safal Profitaire Corporate Road     Sector 30 A, Behind Raghu Leela
          Prahlad Nagar, Satellite,                Mall,
          Ahmedabad - 380 015 (Gujarat)            Vashi, Navi Mumbai
          Telefax: (079) 26937591- 93              Tel: (022)-67215021-23



Central Zone

          Allahabad                              Bhopal
          45/21, Muir Road,                      131/3, 3rd floor, Zone-II,
          Near Traffic Police Line Crossing,     M.P. Nagar,
          Allahabad - 211002 (U.P)               Bhopal - 462011 (M.P)
          Tel: (0532) 2266002 - 04               Tel: (0755) 4002952-54
          FAX: (0532) 2266008                    Fax: (0755) 40029251


          Delhi (Noida Office)                   Lucknow
          JA Annexe,                             Vishnu Sadan,
          Sector 134 Wajiidpur,                  5 Park Road,
          Noida - 201304(U.P)                    Hazratganj, Lucknow - 226001 (U.P)
          Tel: (0120) 4516000                    Tel: (0522) 2238953, 2238524
          FAX: (0120) 4516101                    Fax: (0522) 2238557


          Rewa
          Jaypee nagar, P.O.,
          Jaypee Nagar,
          Rewa - 486450 (M.P)
          Tel: (07662) 400700, 229601 - 09
          Fax: (07662) 229218




Group 7
Distribution Channel
Companies invariably hire c & f agents or 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 in cement industry is highly dominating and companies are
compelled to hire as they do not really have that rapport and touch with the end consumer of
their product. Apart, from this, the distributors have storage facilities as well which help control
well in the entire supply chain as they are the ones who bring orders and therefore are directly
responsible for the business that a manufacturer would do.



                                        Manufacturing Unit


                                            Warehouse


                                        Dealers/Distributor


                                            Sub Dealers



                                             Retailers




Group 7
7. Promotion




Jaypee Cement’s 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.




                     Our Motto “Work for Quality, Safety, Health & Environment”



Jaypee produces a wide variety of cements, which are specifically designed to cater to the
customer’s requirements for different types of cements in each of its markets.

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.




Group 7
Advertisement
      Jay pee Cement launches a new campaign to redefine the concept of solidity and trust
      with an emotional connect that the Jaypee Group has come to be known for “Andar se
                     onal
      Solid” as the tagline to consolidate the brand’s core values of Trust, Resilience & Stability
      and the brand’s core promise of superior strength, durability and withstanding the test
      of time.




     Campaign would reinforce and further build on the brand’s virtues of strength, endurance
     and fortitude – values that shall propel Jaypee Cement to a capacity of 25 million tonnes
     by 2010 and then 35 million tonnes per annum by 2011




     Jaypee Cement is India’s 3rd largest cement player and To communicate the company’s
     leadership stature and premium positioning, an aggressive multimedia campaign has been
     drawn up

New Delhi, April 14, 2009
                     2009:
“ The Master Blaster, Sachin Tendulkar To Endorse Ja ypee Cement”
                                                  Jaypee




Group 7
Jaypee Cement – India’s leading cement brand, today launched its new brand campaign and
announced its association with the Master Blaster, Sachin Tendulkar. The new campaign looks
to redefine the concept of solidity and trust with an emotional connect that has come to be
associated with all Jaypee Group campaigns.


    “JAYPEE CEMENT ONE OF ASSOCIATE COMPANIES OF JAYPEE GROUP, TODAY
       ENDORSED FAMOUS LYCRIST JAVED AKHTAR AS BRAND AMBASSADOR




                              2. NEWSPAPER PRINT




Group 7
3. PRESS RELEASES

    1. Jaiprakash Associates to set up cement plant in Assam.
          Total project cost is Rs 1050 crore 2.00 MMTPA plant in JV with Assam Mineral
                                  Development Corporation Limited

New Delhi; July 31, 2009; Jaiprakash Associates Ltd (JAL), the flagship company of the well
diversified industrial conglomerate Jaypee Group having interests in the fields of Civil
Engineering, Cement, Power, Real Estate & Hospitality, today signed an MOU for setting up a 2.0
million tonnes per annum capacity cement plant in joint venture with Assam Mineral
Development Corporation Limited (AMDC). The joint venture company, to be incorporated
shortly, shall set up cement project at Umrangshu District Halflong North Cachhar Hills in
Assam based on the limestone reserves of 157 Mn Tonne in the region.




2. Hon’ble CM of Gujarat, Shri Narendra Modi inaugurates
Jaiprakash Associates cemet plant in Gujarat
     JAL invested Rs 1500 crore in the cement plant having capacity of 2.4 MTPA
                        JAL’s first cement plant in Gujarat

New Delhi/Sewagram (Kutch, Gujarat); December 02, 2009: The Honourable Chief
Minister of Gujarat, Shri. Narendra Modi today dedicated Jaiprakash Associates’ 2.4 million
tonnes per annum capacity cement plant in Sewagram, Kutch, Gujarat in the presence of other
dignitaries, to the nation.

3. Jaypee Group to Invest Rs 33,000 Crores in Gujarat
   New Delhi, January 15: Jaiprakash Associates Ltd (JAL) has committed to invest
              Rs 33,000 crore more in Gujarat over the next 3 to 5 years.

The company signed 6 MoUs at the just concluded Vibrant Gujarat investors meet. The plans
include setting up of an Alumina plant (Rs 14,000 crores), 1 thermal power plant and grinding
unit (Rs 6000 crores), development and mining of a coal block (Rs 8000 crores), development of
2 jetties (Rs 1000 crore), and expansion of cement production (Rs 4000 crores).

All these projects are slated for Gujarat’s Kutch region where the company has already invested
over Rs 6000 crores in a Greenfield cement plant and creating health and educational facilities
for the local people. The plant is of 2.4 million tones per annum capacity, which will be
enhanced to 4.8 MTPA in a few months time.

Expressing his pleasure over the signing of the MoUs, Jaypee Group’s Executive Chairman, Mr
Manoj Gaur, said “These MoUs represent our continuing commitment to the development of
Gujarat and creating thousands of new employment opportunities for the people.”




Group 7
8. Customer Survey Analysis:
The objective of this survey is to understand the consumer’s decision making process. We
approached few customers and analyzed their purchasing behaviour. This is a very sample
small size and covers customers in the Gurdaspur District only. We cannot vouch that the
responses of customers all over the country will be the same. As we found that customer had
little awareness and say in the final purchase of a particular product, we met about ten dealers
to understand the customers’ perceived behaviour and their influence on the final decision
making by the customer. The generic buying process of a consumer is given below. However, all
these stages do not occur in every purchase as the customer skips some of them.




The buying process starts with need or problem recognition. At this stage, the customer
recognizes a problem or need and in this case for example: I have to construct/repair the house
so I need to buy some cement.
An “aroused” customer then needs to decide how much information (if any) is required.
If the need is strong and there is a product or service that meets the need close to hand, then a
purchase decision is likely to be made there and then. If there is a deficiency in information, the
customer is likely to start a process of information gathering.


He/she can gather information from several sources:
• Personal sources: family, friends, neighbours etc
• Commercial sources: advertising; salespeople; retailers; dealers
• Public sources: newspapers, radio, television, consumer organizations; specialist magazines
• Experiential sources: handling, examining, using the product




Group 7
We found that the Personal sources play the major role in the customer decision making
process. The friends were found to be the most dominant.


                               Decision-Influencers
              25


              20


              15


              10                                                     No.of customers


              5


              0
                    Family          Friends        Neighbours



Public sources also play a significant role in “pull” strategy for the consumer. Of the public
                                                               for
sources, Television plays the most influential role as is shown below. Many customers
identified, Television as the most effective media in influencing buyer’s decisions for the
purchase of Cement.. It scores much higher than t other audio-visual sources of media
                                                the



                                 Media Advantage
       30

       25

       20

       15
                                                                        No. of Customers
       10

          5

          0
                   Tv              Hoarding         News Papers




Group 7
Few others factors that reflect Customer Purchase behaviour are as follows:

BRAND APPEAL:

When customers were surveyed for naming any 4 brands in terms of quality ,price and trust in
the cement industry that first came to their mind, majority of the respondents gave ACC as their
first preferred choice as its the oldest brand and people has trust in it. On the other hand they
choose Jaypee as second choice in terms of respect but fi in quality.
                                                       first


          30

          25

          20
                                                                                quality
          15
                                                                                trust
          10
                                                                                price
           5

           0
                   Ambuja         Grasim         JayPee           Acc



Dealer questionnaire analysis:
Since dealers turned out to be the major influencers in the decision making process, we
questioned all the Asian Paints dealers in Bhubaneshwar. The objective was to understand the
dealers perception of Asian Paints and the competing brands. These are the responses from the
dealers.

Market Pull: On being asked, how they decide which brand to sell, most of them replied
that customer demand for the brand was the major deciding factor. Some o them were also
                                                                        of
induced by profit margins and incentives.

Prevalence of the brand: Most dealers responded that Jaypee cement will be the most
prevalent brand because its brand awareness is the high and the product is appreciated alot
because of its quality.

Incentives given to dealers: Incentives include cash discounts on bulk buys, foreign trips
and expensive gifts on surpassing sales targets. This is indicative of the companies aggressive
trade promotion.

Who is the influencer of the customer decision: It was observed that customers are
mostly influenced by Friends. This shows that the customers are not informed themselves and
depend more or less on advice from the above. One more observation was that many of the
customers were brand loyal and therefore did not switch brands.

Dealer feedback: The dealer is not taken into consideration for marketing decisions.
Since the intermediaries play a very vital role in the value chain of Cement the company
should devise methods to map the views of the dealers
           ise



Group 7
9. Suggestions
   •   Large number of players in cement industry makes it more competitive for JAYPEE
       CEMENT to carefully price its product and at the same time satisfy its dealers and
       customers.

   •    The emergence of small players in this market may increase the competition and start
       the malpractices, and heavy discounts to retailers. They can also influence many
       retailers by giving better profit margin, and other Benefits.

   •   People are opting for more stable structures and intensive use of cement is taking place,
       even government is spending heavily on infrastructure projects. Thus, this is the right
       time to fully tap these markets.

   •   Foreign direct investment in infrastructure sector going to increase in coming years,
       which will increase the demand of cement. Therefore JAYPEE CEMENT should try to
       create a goodwill in the market so that they can attract more customers




Group 7
Appendix
                              Dealers Questionnaire
Personal data:
   1. Name (Optional) :___________________
   2. Age :
          i) Below 35yrs         ii) 35-45yrs         iii) Above 45yrs
   3. Educational Level :
      i)Below Pre degree         ii)UG/Diploma        iii)PG
   4. Nature of the Shop
      o Cement Outlet
      o Cement Cum Hardware
      o Cement / Building materials
   5. No of Years in Business?
      o Less than 5 years
      o 6 – 10 years
      o 11 – 15 years
      o More than 15 years
   6. What are the grades you are dealing with?
      o 43 grade cement
      o 53 grade cement
      o Blended cement
      o All grade cement
   7. Which grade is more Saleable?
      o 43 grade cement
      o 53 grade cement
      o Blended cement
   8. Which influence you to buy this product?
      o Quality
      o Price
      o Brand Image




Group 7
9. How much quantity of cement you sell per month?
      o 200 – 400 tons
      o 400 – 600 tons
      o 600 – 800 tons
      o More than 800 tons
   10. How often you are getting the supply of product?
      o Daily
      o Once in a week
      o Once in 15 days
      o Once in a month
   11. Reason for selling cement?
      o Customer Acceptance
      o Increased profitability
      o Availability of product
   12. What is the mode of payment?
      o Cash
      o Cheque
   13. Does the company provide any Incentive Scheme?
      o Yes
      o No
   14. If yes then mention the scheme? ________________
   15. Opinion about the company’s Incentive Scheme?
      o Very Good
      o Good
      o Satisfactory
      o Poor
   16. Comparing to other brand cements how is the price of Jaypee cement?
      o High
      o Normal
      o Low
   17. Which type of customer buying the product constantly?
      o Retailers & Contractors
      o Retailers & Engineers


Group 7
18. Do Consumer generally request cement?
      o Always
      o Frequently
      o Sometimes
      o Never
   19. Does the company give any advertisement for the product if yes through what
      medium?
      o TV
      o Radio
      o Newspaper
      o Magazines
      o Others ___________
   20. Does the company give information about the different grades and their
      quality standards periodically?
      o Yes
      o No
   21. If yes through what medium?
      o Letters
      o E mail
      o Phone
   22. Apart from the company did you take any steps to increase the sales?
      o Manson meeting
      o Discount
      o Credit Facility
   23. Whether the company conduct dealers meet regularly?
      o Yes
      o No
   24. If yes specify the frequency in which the meets were conducted?
      o Once in a year
      o Twice in a year
      o More than twice
   25. Opinion on the timely distribution system?
      o On time      o Not on time


Group 7
Customer Questionnaire

      1. Name (Optional) :___________________

      2. Educational Level :
          i)Below Pre degree                        ii)UG/Diploma                 iii)PG

      3. Occupation :__________
      4. How you do you know about this brand?
          o Advertisement

          o Dealers
          o Experience

          o Personal sources
      5. What influence you to buy this product?
          o Quality
          o Price
          o Brand Image
          o Availability
      6. Comparing to other cement brands how is the price of Jaypee cement?
          o High
          o Normal

          o Low
      7. Have you ever used Jaypee Cement?

          o Yes
          o No
      8. If yes, then Opinion about the product?
          o Very Good
          o Good
          o Satisfactory
          o Poor
      9. Do you think Jaypee cement need more advertisement?
          o Yes
          o No
      10. When you think of cements what are the brand names that come to your mind?

          1...................   2....................... 3.........................   4.........................




Group 7
Bibliography

          http://jalindia.com/index.htm

          www.digisoft.in/demo/jaypee

      en.wikipedia.org/wiki/Jaypee

      India in Business, ITP division, Ministry of external affairs, Govt of India

      RNCOS, Indian Cement Industry, Forecast to 2012.

          http://business.mapsofindia.com/cement/

      http://www.cemweek.com

      www.alacra.com

      www.bseindia.com

      www.moneycontrol.com

      http://www.calmac.org/

      www.researchandmarkets.com




Group 7

More Related Content

What's hot

Project report on assessment and development centre in sail
Project report on assessment and development centre in sailProject report on assessment and development centre in sail
Project report on assessment and development centre in sailKumari Hima
 
hr practices at ntpc ltd
hr practices at ntpc ltdhr practices at ntpc ltd
hr practices at ntpc ltdAniket Harsh
 
Human resource practices in l&t (presentation on Larsen & toubro)
Human resource practices in l&t (presentation on Larsen & toubro)Human resource practices in l&t (presentation on Larsen & toubro)
Human resource practices in l&t (presentation on Larsen & toubro)manas agrawal
 
Summer internship project hr mba mms
Summer internship project hr mba mmsSummer internship project hr mba mms
Summer internship project hr mba mmsSria
 
HR Policies of Aditya Birla Group ppt
HR Policies of Aditya Birla Group pptHR Policies of Aditya Birla Group ppt
HR Policies of Aditya Birla Group pptManish Pandey
 
Project report of amit kr singh
Project report of amit kr singhProject report of amit kr singh
Project report of amit kr singh88amit
 
Strategic Management of Tata Steel
Strategic Management of Tata SteelStrategic Management of Tata Steel
Strategic Management of Tata SteelNikita Jangid
 
ORGANISATIONAL STUDY REPORT OF STEEL AUTHORITY OF INDIA lpptx
ORGANISATIONAL STUDY REPORT OF STEEL AUTHORITY OF INDIA lpptxORGANISATIONAL STUDY REPORT OF STEEL AUTHORITY OF INDIA lpptx
ORGANISATIONAL STUDY REPORT OF STEEL AUTHORITY OF INDIA lpptxHarikrishnan M
 
SAIL-Steel Authority Of India Overview
SAIL-Steel Authority Of India OverviewSAIL-Steel Authority Of India Overview
SAIL-Steel Authority Of India OverviewNingsang Jamir
 
Internship Training Report
Internship Training ReportInternship Training Report
Internship Training ReportAVINASH JURIANI
 
ORGANIZATIONAL STRUCTURE TRAINING
ORGANIZATIONAL STRUCTURE TRAININGORGANIZATIONAL STRUCTURE TRAINING
ORGANIZATIONAL STRUCTURE TRAININGSaurabh Vishal
 
Jindal steel and power
Jindal steel and powerJindal steel and power
Jindal steel and powerakrutipoojary
 

What's hot (20)

Project report on assessment and development centre in sail
Project report on assessment and development centre in sailProject report on assessment and development centre in sail
Project report on assessment and development centre in sail
 
Steel Industry
Steel IndustrySteel Industry
Steel Industry
 
Jk cements ltd
Jk cements ltd Jk cements ltd
Jk cements ltd
 
Jaypee Cement Ltd.
Jaypee Cement Ltd.Jaypee Cement Ltd.
Jaypee Cement Ltd.
 
Project Report
Project ReportProject Report
Project Report
 
hr practices at ntpc ltd
hr practices at ntpc ltdhr practices at ntpc ltd
hr practices at ntpc ltd
 
Human resource practices in l&t (presentation on Larsen & toubro)
Human resource practices in l&t (presentation on Larsen & toubro)Human resource practices in l&t (presentation on Larsen & toubro)
Human resource practices in l&t (presentation on Larsen & toubro)
 
Summer internship project hr mba mms
Summer internship project hr mba mmsSummer internship project hr mba mms
Summer internship project hr mba mms
 
Jindal Steels
Jindal SteelsJindal Steels
Jindal Steels
 
HR Policies of Aditya Birla Group ppt
HR Policies of Aditya Birla Group pptHR Policies of Aditya Birla Group ppt
HR Policies of Aditya Birla Group ppt
 
Project report of amit kr singh
Project report of amit kr singhProject report of amit kr singh
Project report of amit kr singh
 
Strategic Management of Tata Steel
Strategic Management of Tata SteelStrategic Management of Tata Steel
Strategic Management of Tata Steel
 
ORGANISATIONAL STUDY REPORT OF STEEL AUTHORITY OF INDIA lpptx
ORGANISATIONAL STUDY REPORT OF STEEL AUTHORITY OF INDIA lpptxORGANISATIONAL STUDY REPORT OF STEEL AUTHORITY OF INDIA lpptx
ORGANISATIONAL STUDY REPORT OF STEEL AUTHORITY OF INDIA lpptx
 
SAIL-Steel Authority Of India Overview
SAIL-Steel Authority Of India OverviewSAIL-Steel Authority Of India Overview
SAIL-Steel Authority Of India Overview
 
Internship Training Report
Internship Training ReportInternship Training Report
Internship Training Report
 
business plan
business planbusiness plan
business plan
 
ORGANIZATIONAL STRUCTURE TRAINING
ORGANIZATIONAL STRUCTURE TRAININGORGANIZATIONAL STRUCTURE TRAINING
ORGANIZATIONAL STRUCTURE TRAINING
 
jaypee cement cps
jaypee cement cpsjaypee cement cps
jaypee cement cps
 
Ceat tyre PROJECT REPORT
Ceat tyre PROJECT REPORT Ceat tyre PROJECT REPORT
Ceat tyre PROJECT REPORT
 
Jindal steel and power
Jindal steel and powerJindal steel and power
Jindal steel and power
 

Viewers also liked

Jai Prakash Associates Pvt Ltd.
Jai Prakash Associates Pvt Ltd.Jai Prakash Associates Pvt Ltd.
Jai Prakash Associates Pvt Ltd.Sujata Verma
 
Tesla motors ppt
Tesla motors pptTesla motors ppt
Tesla motors pptDerek Asare
 
Tesla Strategy
Tesla StrategyTesla Strategy
Tesla StrategyJoe Baker
 
tesla case study
tesla case studytesla case study
tesla case studyRobert Korn
 
Darden School of Business Tesla Strategic Analysis
Darden School of Business   Tesla Strategic AnalysisDarden School of Business   Tesla Strategic Analysis
Darden School of Business Tesla Strategic AnalysisJosé Ángel Álvarez Fuente
 

Viewers also liked (6)

Jai Prakash Associates Pvt Ltd.
Jai Prakash Associates Pvt Ltd.Jai Prakash Associates Pvt Ltd.
Jai Prakash Associates Pvt Ltd.
 
Tesla motors ppt
Tesla motors pptTesla motors ppt
Tesla motors ppt
 
Tesla Strategy
Tesla StrategyTesla Strategy
Tesla Strategy
 
tesla case study
tesla case studytesla case study
tesla case study
 
Tesla Motors Presentation
Tesla Motors PresentationTesla Motors Presentation
Tesla Motors Presentation
 
Darden School of Business Tesla Strategic Analysis
Darden School of Business   Tesla Strategic AnalysisDarden School of Business   Tesla Strategic Analysis
Darden School of Business Tesla Strategic Analysis
 

Similar to Jaypee Cement Ltd.

Environmental effect of coal based power plants
Environmental effect of coal based power plantsEnvironmental effect of coal based power plants
Environmental effect of coal based power plantsAbdul Aziz Afzaal Siddiqui
 
Equity Market Reactions based on Company’s Financial Strategies
Equity Market Reactions based on Company’s Financial StrategiesEquity Market Reactions based on Company’s Financial Strategies
Equity Market Reactions based on Company’s Financial StrategiesRUPANJAN NAYAK
 
JAYPEE ASSOCIATES
JAYPEE ASSOCIATESJAYPEE ASSOCIATES
JAYPEE ASSOCIATESAMIT SINGH
 
Financial Analysis of Jaiprakash Associates Ltd
Financial Analysis of Jaiprakash Associates LtdFinancial Analysis of Jaiprakash Associates Ltd
Financial Analysis of Jaiprakash Associates LtdIshfaq Shah
 
A Presentation on the Rural Electrification Corporation Limited (RECL)- Mini ...
A Presentation on the Rural Electrification Corporation Limited (RECL)- Mini ...A Presentation on the Rural Electrification Corporation Limited (RECL)- Mini ...
A Presentation on the Rural Electrification Corporation Limited (RECL)- Mini ...Chandra Shekar Immani
 
T&D India (January 2017): INTELECT 2017 Special
T&D India (January 2017): INTELECT 2017 SpecialT&D India (January 2017): INTELECT 2017 Special
T&D India (January 2017): INTELECT 2017 SpecialT&D India
 
Assignment of mergers and acquition.docx
Assignment of mergers and acquition.docxAssignment of mergers and acquition.docx
Assignment of mergers and acquition.docxArushi232323
 
Adani Power, Tirora- Project Report
Adani Power, Tirora- Project ReportAdani Power, Tirora- Project Report
Adani Power, Tirora- Project ReportNemish Kanwar
 
An Organisation study at ADITYA BIRLA ULTRATECH LTD
 An Organisation study at ADITYA BIRLA ULTRATECH  LTD An Organisation study at ADITYA BIRLA ULTRATECH  LTD
An Organisation study at ADITYA BIRLA ULTRATECH LTDRahul G
 
Adani power Practice School
Adani power Practice SchoolAdani power Practice School
Adani power Practice SchoolNemish Kanwar
 
EDPM Report # 2_ Pankaj Shukla
EDPM Report # 2_ Pankaj ShuklaEDPM Report # 2_ Pankaj Shukla
EDPM Report # 2_ Pankaj ShuklaPankaj Shukla
 

Similar to Jaypee Cement Ltd. (20)

scpcl
scpclscpcl
scpcl
 
Environmental effect of coal based power plants
Environmental effect of coal based power plantsEnvironmental effect of coal based power plants
Environmental effect of coal based power plants
 
Equity Market Reactions based on Company’s Financial Strategies
Equity Market Reactions based on Company’s Financial StrategiesEquity Market Reactions based on Company’s Financial Strategies
Equity Market Reactions based on Company’s Financial Strategies
 
JAYPEE ASSOCIATES
JAYPEE ASSOCIATESJAYPEE ASSOCIATES
JAYPEE ASSOCIATES
 
PowerLine Magazine- Interview of Chief Commercial, TATA Power-DDL
PowerLine Magazine- Interview of Chief Commercial, TATA Power-DDLPowerLine Magazine- Interview of Chief Commercial, TATA Power-DDL
PowerLine Magazine- Interview of Chief Commercial, TATA Power-DDL
 
Financial Analysis of Jaiprakash Associates Ltd
Financial Analysis of Jaiprakash Associates LtdFinancial Analysis of Jaiprakash Associates Ltd
Financial Analysis of Jaiprakash Associates Ltd
 
A Presentation on the Rural Electrification Corporation Limited (RECL)- Mini ...
A Presentation on the Rural Electrification Corporation Limited (RECL)- Mini ...A Presentation on the Rural Electrification Corporation Limited (RECL)- Mini ...
A Presentation on the Rural Electrification Corporation Limited (RECL)- Mini ...
 
Mp High Lights
Mp High LightsMp High Lights
Mp High Lights
 
T&D India (January 2017): INTELECT 2017 Special
T&D India (January 2017): INTELECT 2017 SpecialT&D India (January 2017): INTELECT 2017 Special
T&D India (January 2017): INTELECT 2017 Special
 
Energy sector
Energy sectorEnergy sector
Energy sector
 
Managerical economics
Managerical economicsManagerical economics
Managerical economics
 
Assignment of mergers and acquition.docx
Assignment of mergers and acquition.docxAssignment of mergers and acquition.docx
Assignment of mergers and acquition.docx
 
About the company
About the companyAbout the company
About the company
 
Working capital jp
Working capital jpWorking capital jp
Working capital jp
 
26_OFS_2022_DG-1.pptx
26_OFS_2022_DG-1.pptx26_OFS_2022_DG-1.pptx
26_OFS_2022_DG-1.pptx
 
Adani Power, Tirora- Project Report
Adani Power, Tirora- Project ReportAdani Power, Tirora- Project Report
Adani Power, Tirora- Project Report
 
An Organisation study at ADITYA BIRLA ULTRATECH LTD
 An Organisation study at ADITYA BIRLA ULTRATECH  LTD An Organisation study at ADITYA BIRLA ULTRATECH  LTD
An Organisation study at ADITYA BIRLA ULTRATECH LTD
 
Adani power Practice School
Adani power Practice SchoolAdani power Practice School
Adani power Practice School
 
EDPM Report # 2_ Pankaj Shukla
EDPM Report # 2_ Pankaj ShuklaEDPM Report # 2_ Pankaj Shukla
EDPM Report # 2_ Pankaj Shukla
 
26_OFS_2022_DG.pptx
26_OFS_2022_DG.pptx26_OFS_2022_DG.pptx
26_OFS_2022_DG.pptx
 

More from Rishabh Dogra

More from Rishabh Dogra (14)

Rural Marketing
Rural MarketingRural Marketing
Rural Marketing
 
Jaypee Supply Chain Management
Jaypee Supply Chain ManagementJaypee Supply Chain Management
Jaypee Supply Chain Management
 
Britannia
BritanniaBritannia
Britannia
 
TIDE
TIDETIDE
TIDE
 
Benefits of cloud computing
Benefits of cloud computingBenefits of cloud computing
Benefits of cloud computing
 
Indian Telecom Industry
Indian Telecom Industry Indian Telecom Industry
Indian Telecom Industry
 
impact of technology on Indian Retail Stores
 impact of technology on Indian Retail Stores impact of technology on Indian Retail Stores
impact of technology on Indian Retail Stores
 
Data warehouse
Data warehouseData warehouse
Data warehouse
 
Data warehouse
Data warehouseData warehouse
Data warehouse
 
paradigm shift in Indian market
paradigm shift in Indian marketparadigm shift in Indian market
paradigm shift in Indian market
 
Dlf ltd.
Dlf ltd.Dlf ltd.
Dlf ltd.
 
IBM Power Systems
IBM Power SystemsIBM Power Systems
IBM Power Systems
 
HDFC Life
HDFC LifeHDFC Life
HDFC Life
 
Group Discussion
Group DiscussionGroup Discussion
Group Discussion
 

Recently uploaded

/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In.../:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...lizamodels9
 
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable  and Resilient Coconut Industry by Dr. Jelfina...Global Scenario On Sustainable  and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...ictsugar
 
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdfIntro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdfpollardmorgan
 
Marketplace and Quality Assurance Presentation - Vincent Chirchir
Marketplace and Quality Assurance Presentation - Vincent ChirchirMarketplace and Quality Assurance Presentation - Vincent Chirchir
Marketplace and Quality Assurance Presentation - Vincent Chirchirictsugar
 
MAHA Global and IPR: Do Actions Speak Louder Than Words?
MAHA Global and IPR: Do Actions Speak Louder Than Words?MAHA Global and IPR: Do Actions Speak Louder Than Words?
MAHA Global and IPR: Do Actions Speak Louder Than Words?Olivia Kresic
 
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...lizamodels9
 
Ten Organizational Design Models to align structure and operations to busines...
Ten Organizational Design Models to align structure and operations to busines...Ten Organizational Design Models to align structure and operations to busines...
Ten Organizational Design Models to align structure and operations to busines...Seta Wicaksana
 
Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03DallasHaselhorst
 
Annual General Meeting Presentation Slides
Annual General Meeting Presentation SlidesAnnual General Meeting Presentation Slides
Annual General Meeting Presentation SlidesKeppelCorporation
 
Kenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby AfricaKenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby Africaictsugar
 
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,noida100girls
 
BEST Call Girls In Old Faridabad ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Old Faridabad ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,BEST Call Girls In Old Faridabad ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Old Faridabad ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,noida100girls
 
Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024Kirill Klimov
 
Market Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 EditionMarket Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 EditionMintel Group
 
Investment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy CheruiyotInvestment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy Cheruiyotictsugar
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfRbc Rbcua
 
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607dollysharma2066
 
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdfNewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdfKhaled Al Awadi
 

Recently uploaded (20)

/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In.../:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
/:Call Girls In Indirapuram Ghaziabad ➥9990211544 Independent Best Escorts In...
 
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable  and Resilient Coconut Industry by Dr. Jelfina...Global Scenario On Sustainable  and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
 
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdfIntro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
 
Corporate Profile 47Billion Information Technology
Corporate Profile 47Billion Information TechnologyCorporate Profile 47Billion Information Technology
Corporate Profile 47Billion Information Technology
 
Marketplace and Quality Assurance Presentation - Vincent Chirchir
Marketplace and Quality Assurance Presentation - Vincent ChirchirMarketplace and Quality Assurance Presentation - Vincent Chirchir
Marketplace and Quality Assurance Presentation - Vincent Chirchir
 
MAHA Global and IPR: Do Actions Speak Louder Than Words?
MAHA Global and IPR: Do Actions Speak Louder Than Words?MAHA Global and IPR: Do Actions Speak Louder Than Words?
MAHA Global and IPR: Do Actions Speak Louder Than Words?
 
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
Call Girls In Sikandarpur Gurgaon ❤️8860477959_Russian 100% Genuine Escorts I...
 
Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)
 
Ten Organizational Design Models to align structure and operations to busines...
Ten Organizational Design Models to align structure and operations to busines...Ten Organizational Design Models to align structure and operations to busines...
Ten Organizational Design Models to align structure and operations to busines...
 
Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03
 
Annual General Meeting Presentation Slides
Annual General Meeting Presentation SlidesAnnual General Meeting Presentation Slides
Annual General Meeting Presentation Slides
 
Kenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby AfricaKenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby Africa
 
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Greater Noida ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
 
BEST Call Girls In Old Faridabad ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Old Faridabad ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,BEST Call Girls In Old Faridabad ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
BEST Call Girls In Old Faridabad ✨ 9773824855 ✨ Escorts Service In Delhi Ncr,
 
Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024
 
Market Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 EditionMarket Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 Edition
 
Investment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy CheruiyotInvestment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy Cheruiyot
 
APRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdfAPRIL2024_UKRAINE_xml_0000000000000 .pdf
APRIL2024_UKRAINE_xml_0000000000000 .pdf
 
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607FULL ENJOY Call girls in Paharganj Delhi | 8377087607
FULL ENJOY Call girls in Paharganj Delhi | 8377087607
 
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdfNewBase  19 April  2024  Energy News issue - 1717 by Khaled Al Awadi.pdf
NewBase 19 April 2024 Energy News issue - 1717 by Khaled Al Awadi.pdf
 

Jaypee Cement Ltd.

  • 2. Table of Contents Executive Summary 1. Company History 2. Industry Structure 3. Environment 4. Products 5. Price 6. Distribution Network 7. Promotion 8. Customer Survey Analysis 9. Suggestions 10. Appendix a. Sample Dealer Questionnaire b. Sample Customer Questionnaire c. Bibliography Group 7
  • 3. Executive Summary The purpose and scope of document is to study, analyze and understand the business and marketing practices of Jaypee cement. In order to achieve this objective, two stages were identified –Data collection stage and the Analysis stage. The first stage includes the data collected from various sources regarding the following: 1. The History of the company, its subsidiaries, The board of Directors, Operation units in India. 2. The closest competitors in the cement industry –Binani cement, AMBUJA cement, ACC, Grasim, Utratech cement, Lafarge cement. 3. Information about the 4 P’s of marketing – Product, Price, Place and Promotion in the Punjab market. 4. A customer and dealer survey in Punjab to understand their decision making Process. The analysis stage includes understanding the implications and relevance of the data collected and drawing conclusions about the company’s business and marketing decisions .The Indian Cement industry is mainly divided into two segments – House Hold Cement Segment and Industrial Cement Segment. Jaypee Cement being used in the construction of large dams and hydro electric power projects like the Tehri Dam in Uttarakhand, Dul Hasti and Baglihar projects in J&K, Indra sagar dam in M.P, Teesta-V project in Sikkim, Baspa-ll, Nathpa Jhakri and Chamera-ll projects in H.P, Tala project in Bhutan, Karcham-Wangtoo Project in H.P, Sardar Sarovar Project in Gujrat, Omkareshwar Hydro Electric Project in M.P and Vishnuprayag Project in Uttarakhand Known for its innovative marketing and distribution strength the company is one of the consistent performers in the Indian scene. The company has a track record of profitability, transparency in operations. Factors that have been given emphasis here include the low per capita consumption of cement .The impact of recent issues & trends (like raw material costs, excise duty rationalizations, quality consciousness in user segments) on the industry dynamics can also be seen. Cement consumption has been growing at a CAGR of over 8% p.a. in the last five years and this trend is likely to continue in the coming years. At present industry requires highest efficiency in physical distribution as companies not working on operational efficiency business models. Companies need to work on improving internal efficiencies to retain profits which are under pressure on account of dropping prices. The customer (retailer for the company) is seen to be dictating terms so companies have no choice but to lure more customers through incentives. At the same time, companies also need to attract final consumers by offering value-added services. So we came up with the following recommendations: To take up trade promotions, to build up relations with the intermediaries, a need to improve current inventory levels to cut down costs, a need to promote awareness among the customers, improve advertising strategies and a need to expand in industrial segment by forming strategic partnerships to take advantage of the upcoming industrial growth at national and regional levels. Group 7
  • 4. 1. Company History SHRI JAIPRAKASH GAUR JI 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 engineerig 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 buliding. 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 Ypung 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 15,000 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 up Jaiprakash Sewa Sansthan (JSS), a ‘not-for-profit trust’ which primarily serves the objectives of socio-economic development,reducing the pain and distress in society Group 7
  • 5. 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 Group’s 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 Balwadi’s for young boys and girls, safe drinking water supply, creating huge water reservoirs in different villages, self employment which includes tailoring classes for women 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 the Satna 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 22.80 MnTPA. 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. JayPee is the largest Cement producer in the state of Uttar Pradesh. For optimizing cost of power, 100% of the power requirement of cement plants are being sourced through captive thermal power plants.(MP-123MW, UP-65 MW, HP-30 MW and Gujrat-85 MW ). Jaypee Cement being used in the construction of large dams and hydro electric power projects like the Tehri Dam in Uttarakhand, Dul Hasti and Baglihar projects in J&K, Indra sagar dam in M.P, Teesta-V project in Sikkim, Baspa-ll, Nathpa Jhakri and Chamera-ll projects in H.P, Tala project in Bhutan, Karcham-Wangtoo Project in H.P, Sardar Sarovar Project in Gujrat, Omkareshwar Hydro Electric Project in M.P and Vishnuprayag Project in Uttarakhand. List of prestigious clients include Reliance Energy, NTPC, NHPC, GAIL, DMRC, IOC, NFL, Indian Railways, DIAL, L&T, Gammon, HCC, Som Datt Builders. IRCON, UPSBC, Hindalco, GMR, OSEL, RIL to name a few. Awarded with "National Safety Award" by the national Safety Council of India for developing and implementing very effective management systems and procedures and attaining very high performance levels in occupational safety and health. Group 7
  • 6. SUBSIDIARIES The Jaypee Group operates through its various subsidiaries in different business segments - Cement and Power Sector. Jaiprakash Power Ventures Limited (JPVL) The company with its operational power plants - 300 MW Baspa-II (Himachal Pradesh) and 400 MW Vishnuprayag (Uttarakhand) is India’s largest Private sector Hydropower producer and is on its way to be an integrated power producer with expansion in Thermal & Power Transmission. www.jppowerventures.com Jaypee Karcham Hydro Corporation Limited (JKHCL) The Government of Himachal Pradesh again invited the group for the Karcham Wangtoo a 1000 MW project. The group formulated JKHCL for this project. Still under execution, the project is to commence its operations in the year 2011. Jaypee Arunachal Power Limited 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. Bina Power Supply Co. Limited BPSCL, the wholly owned subsidiary of JPVL, is setting up a Coal based Thermal Power Plant of 500 MW (2x250 MW) in the first phase against the total proposed capacity of 1500 MW at Bina, Distt. Sagar, MP. 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. www.jaypeepowergrid.com Bhilai Jaypee Cement Limited (BJCL) Incorporated in the state of Chhattisgarh as a Joint Venture with Steel Authority of India Ltd. (SAIL). The said company is to produce a 2.2 MTPA split-located Cement Plant at Bhilai in the State of Chattisgarh and at Babupur, Satna in the State of Madhya Pradesh. www.bjcl.co.in Gujarat Jaypee Cement & Infrastructure Limited (GJCIL) The Group has signed an Agreement with Gujarat Mineral Development Corporation Limited (GMDCL) for setting up of a 2.4 MTPA capacity cement manufacturing plant with captive power station and captive Jetty in district Kutch of 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. 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. Group 7
  • 7. 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 connecting Noida with Agra. www.jaypeeinfratech.com 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. 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. www.jaypeesports.com Sangam Power Generation Co. Ltd. (SPGCL) & Prayagraj Power Generation Co. Ltd. (PPGCL). Two super critical technology boiler based Thermal Power Projects are being implemented by Jaiprakash Power Ventures Ltd. (JPVL), a subsidiary of your Company. 1980 MW Karchana Thermal Power Project in Tehsil Karchana of Allahabad District is being implemented by Sangam Power Generation Company Ltd. (SPGCL) and 3300 MW Bara Thermal Power Project in Tehsil Bara of Allahabad Distt is being implemented by Prayagraj Power Generation Company Ltd. (PPGCL). 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 Km BOARD OF DIRECTORS The Board of Directors of the company have envisioned the organisation to new heights. The company is well managed under the foray of these individuals: Shri Manoj Gaur, Executive Chairman & CEO Dr. J N Gupta Shri Sunil Kumar Sharma, Executive Vice Shri M S Srivastava Chairman Shri S K Jain, Vice Chairman Shri Sunny Gaur, Managing Director (Cement) Shri R N Bhardwaj Shri Pankaj Gaur, Jt. Managing Director (Constn.) Shri A K Sahoo (LIC Nominee) Shri R K Singh (Whole-time) Shri B K Goswami Shri Ranvijay Singh (Whole-time) Shri B K Taparia Shri S.D. Nailwal (Whole-time) Dr. B Samal Shri Rahul Kumar (Whole-time Director & CFO) Shri Viney Kumar (IDBI Nominee) Shri V K Chopra Shri S C Bhargava Shri S C Gupta Group 7
  • 8. PRESENCE ACROSS INDIA With its solitary Mission is to achieve Excellence in every sector that the group operate in - be it Engineering & Construction, Cement, Real Estate or Consultancy, the Jaypee Group has marked its presence all over the nation overtaking the obstacles in path of achievement . The group has not only obtained sustainable development but also enhanced the shareholders value and fulfilled obligations towards building a better India. Group 7
  • 9. ACHIEVEMENTS FOR THE YEAR 2010 Jaypee Rewa Cement Plant and Jaype Bela Cement Plant in Madhya Pradesh of the Group have been awarded with renowned and most prestigious “SWORD OF HONOUR” award by the British Safety Council, UK. This is a well acclaimed and celebrated international award in the field of Health and Safety management system. 3.00 MnTPA Rewa and 2.40 MnTPA Bela are the only cement plants to be bestowed with this honour in India.(For Details) The garbage processing plant of Jaiprakash Associates Ltd. located in Dadumajra, Chandigarh was awarded “Excellence for the best solid waste management plant in the country” by Confederation of Indian Industry (CII). "Lifetime Achievement Award" being conferred to Shri Jaiprakash Gaur, Founder Chairman by Merchants’ Chamber of Uttar Pradesh, Kanpur for creating new milestones in Infrastructure development and his achievement in Corporate Social Responsibility for the year 2010. “Infrastructure Leader of the Year ” award being conferred to Shri Jaiprakash Gaur, Founder Chairman by Shri Kamal Nath, the Union Minister of Road Transport and Highways during the Essar Steel Infrastructure Excellence Awards 2010 in association with CNBC TV18. 400 MW Vishnuprayag Hydropower Project of Jaiprakash Power Ventures Ltd (JPVL) was awarded 1st Prize in the category “Energy & Power’’ by the Essar Steel Infrastructure Excellence Awards 2010 in association with CNBC TV18. 300 MW Baspa – II Hydropower project being awarded with “Silver Shield” by Shri Sushil Kumar Shinde, Union Minister of Power along with Shri Bharatsinh Solanki, Union Minister of State for Power in the prestigious National Awards for Meritorious Performance in Power Sector by the Ministry of Power for 2008-09. SWORD OF HONOUR Based on the OH&S performance and 5 Star Rating, both the units, Jaypee Rewa Plant and Jaypee Bela Plant, have been awarded with the most prestigious and renowned Sword of Honour by British Safety Council, UK. The Sword of Honour is the most prestigious international health and safety honour that a company can receive, and it is designed to encourage and reward organisations that abide to best practices. Each year only 40 organisations around the world are awarded with the Sword of Honour Award. Group 7
  • 10. CERTIFICATIONS ISO 9001 : 2008 Jaiprakash Associates Ltd.is ISO 9001 : 2008 certified company, Accredited by UKAS and NABCB. The scope of certification covers processes for Business Development, for Infrastructure projects and Civil and Hydro – Mechanical works of Hydro – Electric Projects, Design and Engineering for Civil and Hydro Mechanical works of Hydro – Electric Projects facilitating and supporting execution of Projects by providing the required resources, Contract Management and interaction with the clients. These processes are monitored, measured and analyzed for identifying needs for continual improvement. Group 7
  • 11. Jaypee Rewa Plant, Jaypeenagar ( Unit of Jaiprakash Associates Limited) been awarded Five Star Rating by the British Safety Council, London, U.K. for Health and Safety Management System. Jaypee Bela Plant, Jaypeepuram (Unit of Jaiprakash Associates Limited) been awarded Five Star Rating by the British Safety Council, London,U.K.for Health and Safety Management System. Group 7
  • 12. 2. Industry Structure Today, India is the world’s largest, non-Chinese cement market and has seen strong growth over the years. Today, India is home to several large cement manufacturers that continue making their way to become part of the global production league tables and the trajectory is widely expected to continue. But, the history of the cement industry in India dates back to the 1889 when a Kolkata- based company started manufacturing cement from Argillaceous. But the industry started getting the organized shape in the early 1900s. In 1914, India Cement Company Ltd was established in Porbandar with a capacity of 10,000 tons and production of 1000 installed. The World War I gave the first initial thrust to the cement industry in India and the industry started growing at a fast rate in terms of production, manufacturing units, and installed capacity. This stage was referred to as the Nascent Stage of Indian Cement Company. In 1927, Concrete Association of India was set up to create public awareness on the utility of cement as well as to propagate cement consumption. The cement industry in India saw the price and distribution control system in the year 1956, established to ensure fair price model for consumers as well as manufacturers. Later in 1977, government authorized new manufacturing units (as well as existing units going for capacity enhancement) to put a higher price tag for their products. A couple of years later, government introduced a three-tier pricing system with different pricing on cement produced in high, medium and low cost plants. Cement Company, in any country, plays a major role in the growth of the nation. Cement industry in India was under full control and supervision of the government. However, it got relief at a large extent after the economic reform. But government interference, especially in the pricing, is still evident in India. In spite of being the second largest cement producer in the world, India falls in the list of lowest per capita consumption of cement with 125 kg. The reason behind this is the poor rural people who mostly live in mud huts and cannot afford to have the commodity. Despite the fact, the demand and supply of cement in India has grown up. In a fast developing economy like India, there is always large possibility of expansion of cement industry. Total cement production in world, in year 2010 was 3325 million tonnes³, with China being the leading producer followed by India. • China: 1800 million metric tonnes (54.13 %) • India: 220 million metric tonnes (6.61%) • US: 63.5 million metric tonnes (1.9%) • Other countries: 1241.5 million metric tonnes (37.33%) Cement production worldwide China India U.S Others Group 7
  • 13. Cement Production & Dispatches Indian Cement industry is comprised of 148 large cement plants with around 46 member companies and more than 300 mini plants. The installed capacity of these large cement plants is estimated to be 219.17 million tonne during 2009-10 (as on March 2009) where majority of the production of cement (94%) in the country is by large plants. There are 95 large cement plants with capacity of of million tonnes and above and around 1, 40,000 manpower is employed under these. Also, there are 365 mini and white cement plants with an installed capacity of 11.10 million tonne 2010- Dec- 2009-10 Description Jan-11 Jan-10 11 10 (Apr-Jan) Cement 14.52 13.59 14.65 136.51 130.85 Production Cement 14.47 13.60 14.59 135.56 130.09 Despatches Growth Perspective In general, the optimism is expected to continue over the coming year. 50 percent of the sample expect an improvement, 40 percent expect it to be much the same and the balance expect a small decline in performance. Equipment manufacturing companies were more optimistic than the rest of the sector, perhaps in part as they were reflecting the optimism of the recent and sustained growth in capital expenditure. Overall 83 percent of equipment vendors believed that future performance would be 'much' or 'somewhat' better in the coming year. In turn, 57 percent of analysts held this view (and a further 30 percent expected performance to be 'much the same’). 45 percent of manufacturers and 37 percent of cement traders expected the next 12 months to be 'somewhat' or 'much' better. This response may reflect position in the production chain with cement traders being closer to the consumer market and identifying potential changes in demand while equipment suppliers are responding to existing demand for additional capital from the manufacturers. Group 7
  • 14. One area where there is fewer consensuses was the future trend for input costs. Around 43 percent believed this would change for the better, 33 percent that it would stay the same and 24 percent that input costs would increase. Contribution by states Among the states, Maharashtra has the highest share in consumption at 12.18 % followed by Uttar Pradesh. In production terms, Andhra Pradesh is leading with 14.72% of total production followed by Rajasthan. Major brands Since cement is a high bulk and low value commodity, competition is also localized because the cost of transportation of cement to distant markets often results in the product being uncompetitive in those markets. There are a number of players prevailing in the cement industry in India. However, there are around 20 big names that account for more than 70% of the total cement production in India. Group 7
  • 15. Few of which are as follows: 1. ACC 2. Gujarat Ambuja 3. Jaypee Group 4. Ultratech 5. Grasim 6. India Cements 7. JK Group Mergers and Recent Investments Gujarat Ambuja taking a stake of 14 per cent in ACC, and taking over DLF Cements and Modi Cement. ACC taking over IDCOL. India Cement taking over Raasi Cement and Sri Vishnu Cement. Grasim's acquisition of the cement business of L&T. Swiss cement major Holcim has picked up 14.8 per cent of the promoters' stake in Gujarat Ambuja Cements (GACL). Holcim's acquisition has led to the emergence of two major groups in the Indian cement industry, the Holcim-ACC-Gujarat Ambuja Cements combine and the Aditya Birla group through Grasim Industries and Ultratech Cement. Lafarge, the French cement major has acquired the cement plants of Raymond and TiscoRama Cement. Overall, the industry remains optimistic about the immediate future and is aware of the potential impact of more rigorous environmental regulations in the coming years. Broadly, these opinions are shared across the geographical and functional spread of the industry. The main differences are expectations of cost increases for the large part of the industry based in Western India and that equipment manufactures remain the most optimistic about growth prospects in the coming year. 3. Environment The chief competitors to Jaypee Cement are – UltraTech Cement, ACC Cement, Binani Cement and Prism Cement. In order to understand the environment, we need to look at each of the Competitors. UltraTech Cement: UltraTech Cement Limited has an annual capacity of 52 million tonnes. It manufactures and markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzalana Cement. It also manufactures ready mix concrete (RMC). The company has 11 integrated plants, one white cement plant, one clinkerisation plant in UAE, 15 grinding units – 11 in India, 2 in UAE, one in Bahrain and Bangladesh each and five terminals — four in India and one in Sri Lanka. Group 7
  • 16. UltraTech Cement is the country’s largest exporter of cement clinker. The export markets span countries around the Indian Ocean, Africa, Europe and the Middle East. UltraTech's subsidiaries are Dakshin Cements Limited, Harish Cements Limited, UltraTech Ceylinco (P) Limited and UltraTech Cement Middle East Investments Limited. ACC Cement: ACC Limited is India’s foremost manufacturer of cement and ready mix concrete with a countrywide network of factories and marketing offices. Established in 1936, ACC has been a pioneer and trend-setter in cement and concrete technology. ACC’s brand name is synonymous with cement and enjoys a high level of equity in the Indian market. It is the only cement company that figures in the list of Consumer Super Brands of India. Among the first companies in India to include commitment to environment protection as a corporate objective, ACC has won several prizes and accolades for environment friendly measures taken at its plants and mines. The company has also been felicitated for its acts of good corporate citizenship. Binani Cement: Binani Cement Limited is the flagship subsidiary of Binani Industries Limited (BIL), representing the Braj Binani Group. The cement business started operations in 1997, in Sirohi District, Rajasthan with a 1.65 MTPA integrated cement facility and a 25 MW captive power plant with technological support from F. L. Smidth, Denmark and Larsen & Toubro Ltd. The capacity was raised to 2.25 MTPA in 2005 through advanced in-house R&D and de-bottlenecking and the Company was also certified to ISO 9001, ISO 14001 and OHSAS 18001 within a short span from commencement of operation. This is an achievement that clearly illustrates the management's commitment to quality, efficiency, environment, health and safety. In 2008, a split-grinding unit at Neem Ka Thana was commissioned, boosting the capacity in India to 6.25 MTPA. Today, Binani Cement has established itself as one of the top companies in the industry in terms of efficiency and performance. What truly sets Binani Cement apart is its clear focus on the core attributes of quality, strength and reliability of the end product. These have paid rich dividends and seen brand 'Binani' growing in prominence and stature, poised to capture increasing market share globally. Prism Cement: Prism Cement Limited is an ISO 9001: 2008, ISO 14001: 2004, OHSAS 18001: 2007 & SA 8000 : 2008 Certified Company. It operates one of the largest single kiln cement plants in the country at Satna, Madhya Pradesh. Equipped with state-of-the-art machinery and technical support from F.L Smidth & Co A.S Denmark, the world leaders in cement technology, Prism Cement has successfully created a niche for itself in the Indian cement industry. The Company is managed by a focused Board comprising of eminent experts from diverse fields ably supported by a professional management team. The Management team ensures high levels of transparency, accountability and equity in all facets of the company’s operations. Group 7
  • 17. 4. Products Jaypee produces a wide variety of cements, which are specifically designed to cater to the customer’s 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, Cross Belt Expert Analyser using the Prompt Gamma Neutron Activation Analysis - for the first time in India, X-Ray Fluorescence and X-Ray Diffraction analysers 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 Cement testing. 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, 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 these states. Group 7
  • 18. Qualities of Jaypee Cement PPC Unmatched characteristics of Jaypee Cement (PPC) which form the basis of sound & durable racteristics construction are: 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. segregated 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. silica 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 Cement (PPC) as the preferred choice of the discerning customer. It is particularly well suited for the tropical climatic conditions of India. Group 7
  • 19. 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: 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. Typical Chemical and Physical Properties of Jaypee Cement (OPC-43 Grade) Requirement of Particulars Typical Range IS: 8112 - 1989 CHEMICAL PROPERTIES 1 Lime Saturation Factor (LSF) 0.88-0.90 0.66 To 1.02 2 Alumina to that of Iron oxide Ratio % (A/F) 1.40-1.60 0.66 Min. 3 In soluble Residue (% by mass) 1.20-1.60 3.00 Max. 4 Magnesium oxide (% by mass) 2.50-3.20 6.00 Max. 5 Sulphuric Anhydride (% by mass) 1.60-1.80 3.00 Max. 6 Total Loss On Ignition (% by mass) 1.20-1.60 5.00 Max. 0.10 Max.(For N.C.)* 7 Total Chloride ( % by mass) 0.010-0.014 0.05 Max.(For P.C.)* PHYSICAL PROPERTIES 1 Fineness (M2/Kg) 280-300 225 Min. Group 7
  • 20. 2 Setting Time (Minutes) Initial 120-140 30 Min. Final 160-180 600 Max. 3 Expansion Le. Chatelier (mm) 1.00-2.00 10.00 Max. Auto clave (%) 0.10-0.20 0.8 Max. 4 Compressive Strength (MPa) 3 Days 32.0-34.0 23 Min. 7 Days 42.0-44.0 33 Min. 28 Days 52.0-54.0 43 in. 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”. Jaypee Cement (OPC-53 S Grade) is also used in heavily loaded or pre stressed structures, which are subjected to high dynamic loads due to rapidly moving volumes, be it a train passing on the railway sleepers or a great volume of water moving at high speed to generate electricity in a penstock Typical Chemical and Physical Properties of Jaypee Cement (OPC-53 Grade) Requirement of Particulars Typical Range IS: 12269 - 1987 CHEMICAL PROPERTIES 1 Lime Saturation Factor (LSF) 0.90-0.92 0.66 To 1.02 2 Alumina to that of Iron oxide Ratio % (A/F) 1.20-1.40 0.66 Min. Group 7
  • 21. 3 In soluble Residue (% by mass) 1.0-1.20 3.00 Max. 4 Magnesium oxide (% by mass) 3.0-3.50 6.00 Max. 5 Sulphuric Anhydride (% by mass) 1.80-2.00 3.00 Max. 6 Total Loss On Ignition (% by mass) 1.0-1.20 4.00 Max. 0.10 Max.(For N.C.)* 7 Total Chloride ( % by mass) 0.010-0.014 0.05 Max.(For P.C.)* PHYSICAL PROPERTIES 1 Fineness (M2/Kg) 320-340 225 Min. 2 Setting Time (Minutes) Initial 110-120 30 Min. Final 150-180 600 Max. 3 Expansion Le. Chatelier (mm) 1.00-2.00 10.00 Max. Auto clave (%) 0.10-0.15 0.8 Max. 4 Compressive Strength (MPa) 3 Days 40.0-42.0 27 Min. 7 Days 49.0-50.0 37 Min. 28 Days 60.0-62.0 53 Min. Group 7
  • 22. 5. Price In Cement industry price is used only as a differentiator between the 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 also varies with the order placed by the customer i.e order placed by him is in trade or in non- trade. 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 prices is affected across 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 Mt. of the sales to the Sales Organiser for promoting the sales in his region. Due to internal competition, the dealers pass on this advantage to the customers by reducing their own margins to 2- 3%. This is a cause of concern for the cement companies because they have to keep a constant check on the prices offered in the market. The dealers offer more of discounts and the companies are not able to firm up the prices. Cement companies offer a lot of discounts like cash discounts, volume discounts, seasonal discounts, foreign tours and allowances to dealers for promoting healthy sales. The dealers take advantage of these discounts to gather more business. As above Jaypee produces a wide variety of cements, which are specifically designed to cater to the customer’s 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 basics prices for different brands of JAYPEE CEMENT from the dealer of Madhya Pradesh (Indore) are given below: JAYPEE CEMENT (PPC) PPC stands for PORTLAND POZZOLANA CEMENT Price of Jaypee Cement (PPC) contains 50 kgs is INR 300 per bag. Jaypee Cement (OPC-43 Grade) Jaypee Cement (OPC-53 Grade) OPC stands for Ordinary Portland Cement Price of Jaypee Cement (OPC-43 Grade) INR 290 Per bag contains 50 kgs is INR 285 per bag. Group 7
  • 23. 6. 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 all the 156 points of cement distribution in order to ensure “track – the – truck” initiative and provide seamless integration. This initiative is the first of its kind in the cement industry in India. 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 2011, along with Captive Thermal Power Plants (CPPs) totalling 375 MW. Now the Group have 12 Integrated Cement Plants supported by 375 MW of captive thermal power, 9 split location plants, 11 Railway sidings and a jetty, giving the Group a pan-India presence in the cement sector. Geographical Spread of the Jaypee Cement Group 7
  • 24. Jaypee Rewa Plant (JRP) Jaypee Bela Plant (JBP) Jaypee Nagar P.O. Jaypee Nagar Jaypee Puram P.O. Jaypee Puram Rewa 486450 (M.P) Rewa 486450 (M.P) Tel : (07662) 400700, 229601-09 Tel : (07662) 409301 Fax : (07662) 229218 Fax : (07662) 229662 CAPACITY – 3.0 MTPA CAPACITY – 2.4 MTPA Jaypee Cement Blending Unit (JCBU) Jaypee Ayodhya Grinding Operations (JAAGO) Village-Sadwa Khurd, Paragana Arail P.O Husainpur Sudhana, Village Khanaura Tehsil-Bara, Distt. Allahabad (U.P.) Teh : Tanda, Distt. Ambedkar Nagar (U.P) Phone: (0532) 2425012 Phone: (05273) 284809, 281020, 281015 Mob: 09956290958 Fax : (05273) 284609 Mob: 09935522345 CAPACITY – 1.0 MTPA CAPACITY – 0.6 MTPA Dalla Cement Factory (DCF) Chunar Cement Factory (CCF) (A Unit Of Jaiprakash Associates Ltd.) (A Unit Of U.P Cement Plant) S.H.5,Kota, PO: Dalla, Sonebhadra(UP) P.O. Chunar, Mirzapur (U.P)-231311 Phone : (05445) 265778, 265801 Tel: (05443) 222926, 222265, 222602 Fax : (05445) 265776 Fax:(05443) 225079 CAPACITY – 0.5 MTPA CAPACITY – 2.5 MTPA Jaypee Cement Grinding Unit (JCGU) Jaypee Himachal Cement Blending Unit Village Khukhrana, P.O: Asan Kala, (JHCBU) Teh: Madlauda Vill. – Tikari (Pandiyana) Distt.Panipat (Haryana) P.O. – Khilian, Tehsil – Nalagarh, Phone: (0180) 2566811 Solan (H.P.)-174101 Phone: (0180)2566812 Phone: (01795) 229100, 266937,266934 Fax: (0180) 2566164 Fax: (01795) 266935 CAPACITY – 1.5 MTPA CAPACITY – 2.5 MTPA Jaypee Sidhi Cement Plant (JSCP) Gujarat Anjan Cement Limited (GACL) Jaypee Vihar, Majhigawan “Sewagram” Vill. Vayor, Taluka – Abdasa P.O. Bharatpur, Sidhi – 486776 Distt.. Kutchh (Bhuj), Gujarat – 370511 Phone: (07802) 276701 - 276714 Phone: (02831) 279200 Fax: (07802) 276715 Fax : (02831) 279279 CAPACITY – 2.0 MTPA CAPACITY – 2.4 MTPA Group 7
  • 26. North Zone Chandigarh Panipat Sco no. 407-408, Village Khukhrana, P.O. Asan Kalan, 1st Floor, above City Financial Bank, Teh : Madlauda, Sector 35C, Chandigarh Distt. Panipat - 132103 (Haryana) Tel: (0172) 4343100, 4343115 Tel: (0180) 2520160 FAX: (0172) 4343116 FAX: (0180) 2520100 Shimla Jaiprakash Associates Ltd. Magad (Khasra No-104/549 Upmohal) Shiv Nagar, Kasumti Shimla - 171009 East Zone Raipur Nagpur Bhilai Jaypee Cement Ltd., F4 Achraj Tower –II, Magneto, The Mall 6th Floor, Labhandi, Chaoni, Sadar, G. E. Road, Nagpur 440013 Raipur - 492010 (C.G.) Tel: (0712) 2582242 – 43 Orissa Patna M/s Ganpati Marketing, 5th Floor, Ashiana Chambers, “Aurashree” 13-14 Govind Vihar, Exhibition Road, Bomikhal, Patna-800001(Bihar) Bhubaneswar – 751010 Tel: (0612) 2501089, 2500236, Mobile: +91 9674441380 2501167 Fax: (0612) 2224497 Ranchi West Bengal Rukmani Tower, 2nd Floor, L&T Chambers, 5th Floor, Near Gaushala, Harmu Bypass Road, Unit 502, 16, Camac Street, Ranchi – 834001 (Jharkhand) Kolkata - 700017 (W.B.) Tel: (0651)-2280070, 2280039 Tel: (033) 22895103 – 06 Fax: (033) 22895107 Group 7
  • 27. West Zone Ahmedabad Mumbai Jaiprakash Associates Limited, Office no. 218, Vashi Infotech Park, B/2, Safal Profitaire Corporate Road Sector 30 A, Behind Raghu Leela Prahlad Nagar, Satellite, Mall, Ahmedabad - 380 015 (Gujarat) Vashi, Navi Mumbai Telefax: (079) 26937591- 93 Tel: (022)-67215021-23 Central Zone Allahabad Bhopal 45/21, Muir Road, 131/3, 3rd floor, Zone-II, Near Traffic Police Line Crossing, M.P. Nagar, Allahabad - 211002 (U.P) Bhopal - 462011 (M.P) Tel: (0532) 2266002 - 04 Tel: (0755) 4002952-54 FAX: (0532) 2266008 Fax: (0755) 40029251 Delhi (Noida Office) Lucknow JA Annexe, Vishnu Sadan, Sector 134 Wajiidpur, 5 Park Road, Noida - 201304(U.P) Hazratganj, Lucknow - 226001 (U.P) Tel: (0120) 4516000 Tel: (0522) 2238953, 2238524 FAX: (0120) 4516101 Fax: (0522) 2238557 Rewa Jaypee nagar, P.O., Jaypee Nagar, Rewa - 486450 (M.P) Tel: (07662) 400700, 229601 - 09 Fax: (07662) 229218 Group 7
  • 28. Distribution Channel Companies invariably hire c & f agents or 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 in cement industry is highly dominating and companies are compelled to hire as they do not really have that rapport and touch with the end consumer of their product. Apart, from this, the distributors have storage facilities as well which help control well in the entire supply chain as they are the ones who bring orders and therefore are directly responsible for the business that a manufacturer would do. Manufacturing Unit Warehouse Dealers/Distributor Sub Dealers Retailers Group 7
  • 29. 7. Promotion Jaypee Cement’s 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. Our Motto “Work for Quality, Safety, Health & Environment” Jaypee produces a wide variety of cements, which are specifically designed to cater to the customer’s requirements for different types of cements in each of its markets. 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. Group 7
  • 30. Advertisement Jay pee Cement launches a new campaign to redefine the concept of solidity and trust with an emotional connect that the Jaypee Group has come to be known for “Andar se onal Solid” as the tagline to consolidate the brand’s core values of Trust, Resilience & Stability and the brand’s core promise of superior strength, durability and withstanding the test of time. Campaign would reinforce and further build on the brand’s virtues of strength, endurance and fortitude – values that shall propel Jaypee Cement to a capacity of 25 million tonnes by 2010 and then 35 million tonnes per annum by 2011 Jaypee Cement is India’s 3rd largest cement player and To communicate the company’s leadership stature and premium positioning, an aggressive multimedia campaign has been drawn up New Delhi, April 14, 2009 2009: “ The Master Blaster, Sachin Tendulkar To Endorse Ja ypee Cement” Jaypee Group 7
  • 31. Jaypee Cement – India’s leading cement brand, today launched its new brand campaign and announced its association with the Master Blaster, Sachin Tendulkar. The new campaign looks to redefine the concept of solidity and trust with an emotional connect that has come to be associated with all Jaypee Group campaigns. “JAYPEE CEMENT ONE OF ASSOCIATE COMPANIES OF JAYPEE GROUP, TODAY ENDORSED FAMOUS LYCRIST JAVED AKHTAR AS BRAND AMBASSADOR 2. NEWSPAPER PRINT Group 7
  • 32. 3. PRESS RELEASES 1. Jaiprakash Associates to set up cement plant in Assam. Total project cost is Rs 1050 crore 2.00 MMTPA plant in JV with Assam Mineral Development Corporation Limited New Delhi; July 31, 2009; Jaiprakash Associates Ltd (JAL), the flagship company of the well diversified industrial conglomerate Jaypee Group having interests in the fields of Civil Engineering, Cement, Power, Real Estate & Hospitality, today signed an MOU for setting up a 2.0 million tonnes per annum capacity cement plant in joint venture with Assam Mineral Development Corporation Limited (AMDC). The joint venture company, to be incorporated shortly, shall set up cement project at Umrangshu District Halflong North Cachhar Hills in Assam based on the limestone reserves of 157 Mn Tonne in the region. 2. Hon’ble CM of Gujarat, Shri Narendra Modi inaugurates Jaiprakash Associates cemet plant in Gujarat JAL invested Rs 1500 crore in the cement plant having capacity of 2.4 MTPA JAL’s first cement plant in Gujarat New Delhi/Sewagram (Kutch, Gujarat); December 02, 2009: The Honourable Chief Minister of Gujarat, Shri. Narendra Modi today dedicated Jaiprakash Associates’ 2.4 million tonnes per annum capacity cement plant in Sewagram, Kutch, Gujarat in the presence of other dignitaries, to the nation. 3. Jaypee Group to Invest Rs 33,000 Crores in Gujarat New Delhi, January 15: Jaiprakash Associates Ltd (JAL) has committed to invest Rs 33,000 crore more in Gujarat over the next 3 to 5 years. The company signed 6 MoUs at the just concluded Vibrant Gujarat investors meet. The plans include setting up of an Alumina plant (Rs 14,000 crores), 1 thermal power plant and grinding unit (Rs 6000 crores), development and mining of a coal block (Rs 8000 crores), development of 2 jetties (Rs 1000 crore), and expansion of cement production (Rs 4000 crores). All these projects are slated for Gujarat’s Kutch region where the company has already invested over Rs 6000 crores in a Greenfield cement plant and creating health and educational facilities for the local people. The plant is of 2.4 million tones per annum capacity, which will be enhanced to 4.8 MTPA in a few months time. Expressing his pleasure over the signing of the MoUs, Jaypee Group’s Executive Chairman, Mr Manoj Gaur, said “These MoUs represent our continuing commitment to the development of Gujarat and creating thousands of new employment opportunities for the people.” Group 7
  • 33. 8. Customer Survey Analysis: The objective of this survey is to understand the consumer’s decision making process. We approached few customers and analyzed their purchasing behaviour. This is a very sample small size and covers customers in the Gurdaspur District only. We cannot vouch that the responses of customers all over the country will be the same. As we found that customer had little awareness and say in the final purchase of a particular product, we met about ten dealers to understand the customers’ perceived behaviour and their influence on the final decision making by the customer. The generic buying process of a consumer is given below. However, all these stages do not occur in every purchase as the customer skips some of them. The buying process starts with need or problem recognition. At this stage, the customer recognizes a problem or need and in this case for example: I have to construct/repair the house so I need to buy some cement. An “aroused” customer then needs to decide how much information (if any) is required. If the need is strong and there is a product or service that meets the need close to hand, then a purchase decision is likely to be made there and then. If there is a deficiency in information, the customer is likely to start a process of information gathering. He/she can gather information from several sources: • Personal sources: family, friends, neighbours etc • Commercial sources: advertising; salespeople; retailers; dealers • Public sources: newspapers, radio, television, consumer organizations; specialist magazines • Experiential sources: handling, examining, using the product Group 7
  • 34. We found that the Personal sources play the major role in the customer decision making process. The friends were found to be the most dominant. Decision-Influencers 25 20 15 10 No.of customers 5 0 Family Friends Neighbours Public sources also play a significant role in “pull” strategy for the consumer. Of the public for sources, Television plays the most influential role as is shown below. Many customers identified, Television as the most effective media in influencing buyer’s decisions for the purchase of Cement.. It scores much higher than t other audio-visual sources of media the Media Advantage 30 25 20 15 No. of Customers 10 5 0 Tv Hoarding News Papers Group 7
  • 35. Few others factors that reflect Customer Purchase behaviour are as follows: BRAND APPEAL: When customers were surveyed for naming any 4 brands in terms of quality ,price and trust in the cement industry that first came to their mind, majority of the respondents gave ACC as their first preferred choice as its the oldest brand and people has trust in it. On the other hand they choose Jaypee as second choice in terms of respect but fi in quality. first 30 25 20 quality 15 trust 10 price 5 0 Ambuja Grasim JayPee Acc Dealer questionnaire analysis: Since dealers turned out to be the major influencers in the decision making process, we questioned all the Asian Paints dealers in Bhubaneshwar. The objective was to understand the dealers perception of Asian Paints and the competing brands. These are the responses from the dealers. Market Pull: On being asked, how they decide which brand to sell, most of them replied that customer demand for the brand was the major deciding factor. Some o them were also of induced by profit margins and incentives. Prevalence of the brand: Most dealers responded that Jaypee cement will be the most prevalent brand because its brand awareness is the high and the product is appreciated alot because of its quality. Incentives given to dealers: Incentives include cash discounts on bulk buys, foreign trips and expensive gifts on surpassing sales targets. This is indicative of the companies aggressive trade promotion. Who is the influencer of the customer decision: It was observed that customers are mostly influenced by Friends. This shows that the customers are not informed themselves and depend more or less on advice from the above. One more observation was that many of the customers were brand loyal and therefore did not switch brands. Dealer feedback: The dealer is not taken into consideration for marketing decisions. Since the intermediaries play a very vital role in the value chain of Cement the company should devise methods to map the views of the dealers ise Group 7
  • 36. 9. Suggestions • Large number of players in cement industry makes it more competitive for JAYPEE CEMENT to carefully price its product and at the same time satisfy its dealers and customers. • The emergence of small players in this market may increase the competition and start the malpractices, and heavy discounts to retailers. They can also influence many retailers by giving better profit margin, and other Benefits. • People are opting for more stable structures and intensive use of cement is taking place, even government is spending heavily on infrastructure projects. Thus, this is the right time to fully tap these markets. • Foreign direct investment in infrastructure sector going to increase in coming years, which will increase the demand of cement. Therefore JAYPEE CEMENT should try to create a goodwill in the market so that they can attract more customers Group 7
  • 37. Appendix Dealers Questionnaire Personal data: 1. Name (Optional) :___________________ 2. Age : i) Below 35yrs ii) 35-45yrs iii) Above 45yrs 3. Educational Level : i)Below Pre degree ii)UG/Diploma iii)PG 4. Nature of the Shop o Cement Outlet o Cement Cum Hardware o Cement / Building materials 5. No of Years in Business? o Less than 5 years o 6 – 10 years o 11 – 15 years o More than 15 years 6. What are the grades you are dealing with? o 43 grade cement o 53 grade cement o Blended cement o All grade cement 7. Which grade is more Saleable? o 43 grade cement o 53 grade cement o Blended cement 8. Which influence you to buy this product? o Quality o Price o Brand Image Group 7
  • 38. 9. How much quantity of cement you sell per month? o 200 – 400 tons o 400 – 600 tons o 600 – 800 tons o More than 800 tons 10. How often you are getting the supply of product? o Daily o Once in a week o Once in 15 days o Once in a month 11. Reason for selling cement? o Customer Acceptance o Increased profitability o Availability of product 12. What is the mode of payment? o Cash o Cheque 13. Does the company provide any Incentive Scheme? o Yes o No 14. If yes then mention the scheme? ________________ 15. Opinion about the company’s Incentive Scheme? o Very Good o Good o Satisfactory o Poor 16. Comparing to other brand cements how is the price of Jaypee cement? o High o Normal o Low 17. Which type of customer buying the product constantly? o Retailers & Contractors o Retailers & Engineers Group 7
  • 39. 18. Do Consumer generally request cement? o Always o Frequently o Sometimes o Never 19. Does the company give any advertisement for the product if yes through what medium? o TV o Radio o Newspaper o Magazines o Others ___________ 20. Does the company give information about the different grades and their quality standards periodically? o Yes o No 21. If yes through what medium? o Letters o E mail o Phone 22. Apart from the company did you take any steps to increase the sales? o Manson meeting o Discount o Credit Facility 23. Whether the company conduct dealers meet regularly? o Yes o No 24. If yes specify the frequency in which the meets were conducted? o Once in a year o Twice in a year o More than twice 25. Opinion on the timely distribution system? o On time o Not on time Group 7
  • 40. Customer Questionnaire 1. Name (Optional) :___________________ 2. Educational Level : i)Below Pre degree ii)UG/Diploma iii)PG 3. Occupation :__________ 4. How you do you know about this brand? o Advertisement o Dealers o Experience o Personal sources 5. What influence you to buy this product? o Quality o Price o Brand Image o Availability 6. Comparing to other cement brands how is the price of Jaypee cement? o High o Normal o Low 7. Have you ever used Jaypee Cement? o Yes o No 8. If yes, then Opinion about the product? o Very Good o Good o Satisfactory o Poor 9. Do you think Jaypee cement need more advertisement? o Yes o No 10. When you think of cements what are the brand names that come to your mind? 1................... 2....................... 3......................... 4......................... Group 7
  • 41. Bibliography http://jalindia.com/index.htm www.digisoft.in/demo/jaypee en.wikipedia.org/wiki/Jaypee India in Business, ITP division, Ministry of external affairs, Govt of India RNCOS, Indian Cement Industry, Forecast to 2012. http://business.mapsofindia.com/cement/ http://www.cemweek.com www.alacra.com www.bseindia.com www.moneycontrol.com http://www.calmac.org/ www.researchandmarkets.com Group 7