Ambuja Cement Limited

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PROJECT REPORT N ARKET SURVEY OFEMENT COMPANIES INOPAR AND KURALI

CITIES


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SPECIAL THANKS

To Prof. Monika Thakur because this projectreport could not have been completedwithout her guidance and my industrial

Guide Mr. Sanjeev Nanda of Ambuja

Cement LimitedChandigarh.I am also grateful to Prof. Ms. SHIVALI

DHINGRA, Head ofthe Institute, Amity Global Business School,

Chandigarh, forpermitting me to undertake this study.


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.MBUJA CEMENT Ltd AnntroductionThe Company was Incorporated on 20th

October 1981 as Ambuja Cements Pvt. Ltd.

The Company was converted into a publiclimited company on19th March 1983 and

its name was changed to Gujarat AmbujaCements Ltd. on 19th May 1983.

Today, Ambuja is the 3 rd largest cementcompany in India, with an annual plant

capacity of 16 million tonnes includingAmbuja Cement Eastern Ltd. and revenuein excess of Rs.3298 crores


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time

When Ambuja set up its first plant in 1986,the accepted time period for installing aplant was 3 years.

Ambuja, did it in less than 2 years. And with

a significantly lower capital expenditure


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Branding a commodity

Cement is a commodity, sold largely onprice. Ambuja Cement was the firstcompany to create a brand out of cementand command a premium.


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ExportsAmbuja Cement exports almost 17% of its

production in a very competitiveinternational environment. For the last tenyears, Ambuja Cement remains Indias

highest exporter of cement.This has been possible for two reasons

One, the quality of cement matches the bestin the world.

Two, the dedicated bulk cementtransportation capability at our Gujaratplant.


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MilestonesBuilding of a cement plant in record 13

months.2.8 kilometer conveyor belt running through

three hills was constructed in just 9

months.Introduced a completely new system oftransporting cement in India the bulkcement transportation by sea.

Introduced complete blast free limestonemining by using the surface miner inlimestone mining for the first time in India.

Created water reservoirs in used up minesand raised the water table in arid areas.

Plants have achieved the lowest pollution


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Recognition

National Award for commitment to quality by thePrime Minister of India.

National Award for outstanding pollution controlby the Prime Minister of India.

Eco-Gold Star by TERI

Best Export Award by CAPEXIL.Award for Corporate Social Responsibility

by Business World FICCIInternational AwardFor Rural Development

by Asian Management Institute (AIM)

ISO 9002 Quality Certification.ISO 14000 Certification for environmental

systems.


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Ambuja Cement

Most profitable cement company in India.Lowest cost producer of cement in the world. Its environment protection measures are at par with

the best in the world. The pollution levels at all itscement plants are lower than the rigorous Swissstandards of 100 mg/NM3.

The only cement company to be awarded with theNational Quality Award.

First cement company to first to receive the ISO 9002quality certification.

Received ISO 14000 Certification for environmental

systems. India's largest exporter of cement.Received Best Award for highest exports by CAPEXIL.First company to introduce the concept of bulk

cement movement by sea in India.


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PRODUCT DETAILS

Ambuja Cement is the flagship brand ofAmbuja. A unique outcome of internationalexpertise, this super performing cementhas been developed taking into

consideration the weather conditions inIndia and practices of home building.Ambuja Cement is available in PortlandSlag Cement (PSC) and Portland Pozzalona

Cement (PPC) variants.


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PROJECT

Project is titled as THE MARKET SURVEY OFVARIOUS CEMENT COMPANIES IN ROPARAND KURALI CITIES of Distt. Ropar inPunjab.


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Objective :-This project is about the study of various

market share occupied by different cementcompanies like ACC, Ambuja cement, Birlacement, Shree cement, Jaypee cement, JK

cement, Ultratech, And others.Project is also about the study of different

pricing pattern of different cementcompanies and their comparative study.

This project also include the differencebetween the billing price and selling priceof different cement companies.


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RESEARCH METHODOLOGY

RESEARCH DESIGN - EXPLORATORYRESEARCH

DESIGN

Area of StudyThe study has been carried out in the Ropar

and Kurali cities of Punjab.

Time Schedule

The study has been carried out in theperiod between 15th June 2009 to 015th July2009.


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DATA COLLECTION: -

The data used for the study is ofPrimarynature.

The sources for the data have been: -

Direct contact with the retailers and dealersof cement in both cities.

Other information required for the study hasbeen gained from the project guide.


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INTERPPRETATION :-

Dealers preference for the storage ofcement brand in Ropar City :-

Sr. No. Company No. of

Dealers/RTL

Percentage

1. Ambuja 5 20%

2. ACC 10 80%

3. Shree -

4. Jaypee -

5. Ultratech -


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Graphical representation of CementCompanies in Ropar city :---


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INTERPPRETATION:-

Obviously, maximum dealers, which areabout 80% , come with ACC and rest 20%are occupied by Ambuja since there areonly these two are the major players in the

market. Rest companies are trying tooccupy their position in the market.


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PRICING PATTERN : ROPAR

. .S r n o B r a n dN a m e

Product B illin gP rice

( ./ )Rs Bag

W h o le sal

e P rice( ./ )Rs Bag

R e ta ile rP rice

( ./ )Rs Bag.1 A m b u ja P P C - 2 4 5 2 4 8

.R s-2 4 8 2 5 2

.R s-2 5 0 2 5 5

.R s

.2 A C C P P C

-2 4 5 2 4 8

.R s -2 4 8 2 5 2

.R s -2 5 0 2 5 5

.R s

.3 S h re e - - - -


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Dealers preference for the storage of cementbrand in Kurali

City :-

INTERPPRETATION :-

Sr. No. Company No. of Dealers/RTLPercentage

1. Ambuja 1 30%

2. ACC 5 46%

3. Ultratech 1 11%

4. Birla 2 .5%

5. Shree 1 11%

6. JK 1 1.5%


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Cement Companies in Kuralicity


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INTERPPRETATION :-

Maximum of market share are occupied byACC almost 46%

and than Ambuja about 30%. Rest of marketshare are occupied

by Ultratech, JK, Shree and Birla.


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WHOLESALE PRICE/RETAILPRICE ANALYSIS FOR KURALI

Sr. no. Brand Name Product Billing Price(Rs./Bag)

Wholesale Price(Rs./Bag)

Retailer Price(Rs./Bag)

1. Ambuja PPC 249 Rs. 249 Rs. 250 Rs.

2. ACC PPC 249-252 Rs. 247-252 Rs. 250-255 Rs.

3. Ultratech PPC 252 Rs. 245 Rs. 250 Rs.

4. Birla PPC 244 Rs. - 250 Rs.

5. Shree PPC 248 Rs. - 252 Rs.

6. JK PPC 240 Rs. _ 244 Rs.


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FINDINGSREASONS STATED BY RETAILER FOR

BRANDPREFERENCE :-AMBUJA

Customers preference

Good cement, plastering work is good

Good name in market

Better packaging


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ACCPeople ask for ACC

Service is good

Very superior quality cement as compared toothers.

They have same price prevailing forwholesale at dealers/stockiest retailersend.


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GRASIM(Birla plus)Price is suitable as per consumer pocket

Rate & profit SHREE

Price is suitable as per consumer pocket

Rate & profit


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PROBLEM FACED BY:

STOCKIEST :-None of the stockiest had any complains

about any brands, in regards to the price,transport, service etc.

Stockiest are satisfied with the companiesservice.

RETAILERS REGRETS (Ambuja)

The stockiest occasionally inform about theprice change in market.

Price should be stabilized in market.


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SUGGESTIONS

A very exhaustive study has been made, keep inessence of the objective of the project. With theefforts put on the project a detailed analysis wasconducted and result were derived, based onthe results and market response few

suggestions are discussed below :-A price fluctuation creates problems for retailers

as the commitments of the price customersAt time it has been seen that the delivery

commitments on the side of the company isnot prompt, this creates a bad name and againbusiness is lost.

On interviewing Dealers/retailers the mostimportant thing they said was about the price

flexibility to play in the market


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CONCLUSION

Although Ambuja Cement Ltd. Has a goodname in the market and has second highestmarket share in both the cities that is Roparand Kurali but difference between first andsecond position is quite large that is 40-60%.

The main reason for the difference the weakmarketing strategy of the company and priceinstability of the company. So to increase themarket share of the company in the marketand to overtake ACC the company has tostabilize its price and have to come with a

strong marketing strategy.The market survey undertaken shows thateffective marketing efforts play a vital role increating the goodwill for the brand. Thedistribution channel of cement industry mustbe well designed and made effective thisensures timely availability of cement


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T H A N K UH A N K U

Documents

Ambuja Cement Limited