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Project Report on Sales Promotion activities of cement company at Area Office jamshedpur ACC Ltd. Under the Supervision of : Submitted By: Mr. Kshitij Sharma Bikram kumar (area incharge) jamshedpur pgdm- 2 nd Year Page 1 of 117

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Page 1: Bikram Project

Project Report

onSales Promotion activities of cement company

at

Area Office jamshedpur ACC Ltd.

Under the Supervision of : Submitted By:

Mr. Kshitij Sharma Bikram kumar(area incharge) jamshedpur pgdm-2ndYearACC Ltd nist berhampur

DeclarationPage 1 of 96

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I hereby declare that the project, which is being presented

in this report, entitled “Sales and Promotion Activity of

cement company” in east singhbhum. Is an authentic

record of my own work during the period of 6 weeks from 20-

05-11 to 30-06-11 as a part of my pgdm course of NIST

berhampur

The information which is given by me in this report is for

the concerned organization and the institute. It would not be

submitted by me anywhere else.

Bikram kumarpgdm 2nd YearNIST berhampur

Acknowledgement

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No work can be done in isolation and this work was no exception. It required the time and efforts of many people without which this would have been very difficult.

This project is a result of few persons whose guidance and efforts were vital for me. I am highly grateful to ACC Ltd. And Mr. Kshitij Sharma Sir, Mr. Prajnan Sir and various Sales Officers of the of ACC Ltd. Area Office jamshedpur who showed me proper direction and devoted their valuable time to accomplish my project.

I would also like to thank to our Director General MR SANGRAM MUDALI DEAN- MR SHOM PRASAD DAS who gave me this opportunity to work on the Summer Training Project as directed by the nist b school. I express my sincere gratitude towards my college guide,Mr kumar srikanta nayak Mr chinmaya sahu , batch coordinator for his suggestions and help for making this project a reality. I express my gratefulness towards Shom Prasad Das, Course Coordinator pgdm, my other faculty members; , Arun Mahapatra Sir, Pramath Sir, Raja Rao Sir, Sisir Sir, Susant Sir, Bhaskar Sir,Gayatry mam,Aprajita mam, sanjukta mam,

Last but not the least I will thank my parents and friends who were consistent source of inspiration and gave me courage and resources to complete my research.

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Contents

Chapter No

Content of the Chapter

Page No.

Chapter 1. Introduction of the Organization

Chapter 2.Organizational Structure and

Hierarchy

Chapter 3. Products and Services

Chapter 4. SWOT Analysis

Chapter 5. Research Problem

Chapter 6. Research Methodology

Chapter 7. Data Analysis & Interpretation

Chapter 8.Conclusion Suggestions &

Limitations

Chapter 9. Bibliography

Annexure Questionnaire

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List of TablesTable-1.....Market share of ACC and other Brands........Page 61

Table-2...Positive and Negative opinions of dealers.......Page 63

Table-3....Position of Discounts................................ Page 70

Table-4....Position of standard marketing activity........ Page 75

Table-5....Position of satisfaction and dissatisfaction of dealers from promotional activities of companies.....Page 77

Table-6....Quantity of cement sold per month.............Page 78

Table-7.....No. of opinions of dealers in favour of companies...............................................Page 79

Table-8.....Preference given by retailers to the companies...............................................Page 83

Table-9.....Preference given by people to the companies...............................................Page 87

List of FiguresFigure-1.....Market share of ACC and other Brands......Page 62

Figure-2.....Position of discounts................................Page 70

Figure-3.....Quantity of cement sold per month...........Page 78

Figure-4.....Preference given by retailers to the companies..................................................Page 84

Figure-5......Preference given by people to the companies..................................................Page 88

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Summary of the Summer Training Project

This summer training is the part of nist two years pgdm

programme. This training was started from my reporting to the

Area Office jamshedpur on 20-05-11. Here I met Mr. Kshitij

Sharma Sir, Mr. prajanan roy Sir and many other sales officers .

I formally started my training from 20.06.10 and on first day I

was introduced to the organization its heritage presents

working process and various areas of work. Mr. Kshitij Sharma

Sir was assigned as my supervisor for the research. He

assigned me the topic for my research that is – Sales and

Promotion activity of cement company and discount structure

and marketing activities . After that he gave me by points to

prepare a questionnaire for the survey. Survey was to be

conducted among the dealers,subdealers and retailers of the

cement of east singhbhum which comesunder the Area Office

jamshedpur ACC Ltd. I started my survey from 26th of may. First

I conducted in east singhbhum . I collected the sample of 80

Dealers and retailers. I completed my survey on 20.06.11 and

started the analysis and interpretation of the collected data.

Duration of the training was 6 weeks. I submitted my report on

25.06.10 to my supervisor Mr. Kshitij Sharma Sir.

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Chapter 1Introduction of the Organization

“The Associated Cement Companies”

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ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's operations are spread throughout the country with 16 modern cement factories, more than 40 Ready mix concrete plants, 20 sales offices, and several zonal offices. It has a workforce of about 10,000 persons and a countrywide distribution network of over 9,000 dealers.

Since inception in 1936, the company has been a trendsetter and important benchmark for the cement industry in many areas of cement and concrete technology. ACC has a unique track record of innovative research, product development and specialized consultancy services. The company's various manufacturing units are backed by a central technology support services centre - the only one of its kind in the Indian cement industry.

ACC has rich experience in mining, being the largest user of limestone. As the largest cement producer in India, it is one of the biggest customers of the domestic coal industry, of Indian Railways, and a considerable user of the country’s road transport network services for inward and outward movement of materials and products.

Among the first companies in India to include commitment to environmental protection as one of its corporate objectives, the company installed sophisticated pollution control equipment as far back as 1966, long before pollution control laws came into existence. Today each of its cement plants has state-of-the art pollution control equipment and devices.

ACC plants, mines and townships visibly demonstrate successful endeavors in quarry rehabilitation, water management techniques and ‘greening’ activities. The company actively promotes the use of alternative fuels and raw materials and offers total solutions for waste management including testing, suggestions for reuse, recycling and co-processing.

ACC has taken purposeful steps in knowledge building. It runs two institutes that offer professional technical courses for engineering graduates and diploma holders which are relevant to manufacturing sectors such as cement. The main

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beneficiaries are youth from remote and backward areas of the country.

ACC has made significant contributions to the nation building process by way of quality products, services and sharing expertise. Its commitment to sustainable development, its high ethical standards in business dealings and its on-going efforts in community welfare programs have won it acclaim as a responsible corporate citizen. 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.

Past of the Company

Heritage- It has an interesting story. ACC was formed in 1936 when ten existing cement companies came together under one umbrella in a historic merger - the country's first notable merger at a time when the term mergers and acquisitions was not even coined. The history of ACC spans a wide canvas beginning with the lonely struggle of its pioneer F.E.Dinshaw and other Indian entrepreneurs like him who founded the Indian cement industry. Their efforts to face competition for survival in a small but aggressive market mingled with the stirring of a country's nationalist pride that touched all walks of life - including trade, commerce and business.

The first success came in a move towards cooperation in the country's young cement industry and culminated in the historic merger of ten companies to form a cement giant. These companies belonged to four prominent business groups - Tatas, Khataus, Killick Nixon and F E Dinshaw groups. ACC was formally established on August 1, 1936. Sadly, F E Dinshaw, the man recognized as the founder of ACC, died in January 1936; just months before his dream could be realized.

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F. E. Dinshaw – The Founder of ACC

ACC stands out as the most unique and successful merger in Indian business history, in which the distinct identities of the constituent companies were melded into a new cohesive organization - one that has survived and retained its position of leadership in industry. In a sense, the formation of ACC represents a quest for the synergy of good business practices, values and shared objectives. The use of the plural in ACC's original name, The Associated Cement Companies Limited, itself indicated the company's origins from a merger. Many years later, some stockbrokers in the country's leading stock exchanges continued to refer to this company simply as 'The Merger'.

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ACC's First Board Meeting in 1936 at The EsplanadeSir Nowroji B Saklatvala was the first chairman of ACC. The first Board included distinguished luminaries of the

Indian business world of the time - names like J R D Tata, Ambalal Sarabhai, Walchand Hirachand,

Dharamsey Khatau, Sir Akbar Hydari, Nawab Salar Jung Bahadur and Sir Homy Mody among others.

1.2:- Present of the CompanyHolcim - A New Partnership

The house of Tata was intimately associated with the heritage and history of ACC, right from its formation in 1936 upto 2000. Between the years 1999 and 2000, the Tata group sold all 14.45 per cent of its shareholding in ACC in three stages to subsidiary companies of Gujarat Ambuja Cements Ltd (later called Ambuja Cement Ltd), who then became the largest single shareholder in ACC.

A new association was forged between ACC and the Holcim group of Switzerland in 2005. In January 2005, Holcim announced its plans to enter into a long-term strategic alliance with the Ambuja Group by acquiring a majority stake in Ambuja Cements India Ltd. (ACIL), which at the time held 13.8 per cent of the total equity shares in ACC. Holcim simultaneously

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announced its bid to make an open offer to ACC shareholders, through Holcim Cement Pvt Limited and ACIL, to acquire a majority shareholding in ACC. An open offer was made by Holcim Cement Pvt. Limited along with Ambuja Cements India Ltd. (ACIL), following which the shareholding of ACIL increased to 34.69 per cent of the Equity share capital of ACC. Consequently, ACIL filed declarations indicating their shareholding and declaring itself as a Promoter of ACC.

Holcim is the world leader in cement as well as being large suppliers of concrete, aggregates and certain construction-related services. Holcim is also a respected name in information technology and research and development. The group has its headquarters in Switzerland with worldwide operations spread across more than 70 countries. Considering the formidable global presence of Holcim and its excellent reputation, the Board of ACC welcomed this new association.

Cement House- The Head Office building

ACC’s Head Office - Cement House, 121 Maharshi Karve Road, Mumbai.

ACC’s registered office was first located at Esplanade House in South Mumbai, a graceful edifice that still stands out in its neighbourhood. The head office then shifted to its own premises in Cement House shown here. The address of this stately building was then Number 1, Queen’s Road,

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Churchgate. An all-India competition in 1938 had invited leading architects of the time to send in their designs of which this elegant design made by Ballardie Thompson & Mathews was chosen as the winning entry. Work on its construction began in 1939 and was completed during the War period. The building was occupied by the Royal Air Force and vacated only in 1946.

In 2009, a unique project, has transformed Cement House into an energy efficient environment-friendly building. Its attractive refurbished façade now houses an ultramodern office equipped with space-saving modular workstations, access control and intelligent lighting with motion and light sensors, waste management systems and water saving devices set amid greenery and a central atrium that further expands the sense of light and space.

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BOARD OF DIRECTORS

Mr N. S. SekhsariaChairman 

 

Mr Paul Hugentobler Deputy Chairman

 

Mr Sumit BanerjeeManaging Director

 

Mr S M PaliaMr Naresh Chandra

Mr Markus AkermannMr M L Narula

Mr D K MehrotraMr R A Shah

Mr Shailesh Haribhakti Mr Kuldip KauraMr Aidan Lynam

 

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Here is a list of our cement plants, showing Plant-wise capacity and their postal address:-

1. Bargarh - [Capacity (MTPA) 1.20]Bargarh Cement WorksCement Nagar, PO BardolDistrict BargarhOrissa -768038

2. Chaibasa - [Capacity (MTPA) 0.87]Chaibasa Cement WorksP.O. Jhinkpani - 833 215District SinghbhumJharkhand

3. Chanda - [Capacity (MTPA) 1.00]Chanda Cement WorksP.O. CementnagarPin - 442 502Dist ChandrapurMaharashtra

4. Damodhar - [Capacity (MTPA) 0.53]Damodar Cement WorksP.O. Sunuri 723 121MadhukundaDistrict PuruliaWest Bengal

5. Gagal - [Capacity (MTPA) 4.40 - Gagal I and II]Gagal Cement WorksP.O. Barmana - 174 013District BilaspurHimachal Pradesh

6. Jamul - [Capacity (MTPA) 1.58]Jamul Cement Works P.O. Jamul Cement WorksPin- 490 024District DurgChhattisgarh

7. Kymore - [Capacity (MTPA) 2.20]Kymore Cement WorksP.O. KymorePin- 483 880Dist. KatniMadhya Pradesh

8. Kudithini - [Capacity (MTPA) 1.10]Kudithini Cement Works Kurugodu RoadP.O.KudithiniDist Bellary 583 115Karnataka

9. Lakheri - [Capacity (MTPA) 1.50]Lakheri Cement WorksP.O. LakheriPin- 323 603Dist Bundi Rajasthan

10.Madukkarai - [Capacity (MTPA) 1.18]Madukkarai Cement WorksP.O. Madukkarai

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District CoimbatoreTamil Nadu

11.Sindri - [Capacity (MTPA) 0.91]Sindri Cement WorksP.O. ACC Colony Pin- 828 124District DhanbadJharkhand

12.Wadi - [Capacity (MTPA) 2.59]Wadi Cement WorksP.O. WadiPin- 585 225District Gulbarga (C. Rly)Karnataka

13.New Wadi Plant - [Capacity (MTPA) 3.20]Wadi Cement WorksP.O. WadiPin- 585 225District Gulbarga (C. Rly)Karnataka

14.Thondebhavi - [Capacity (MTPA) 1.60]Thondebhavi Cement Works Madugiri Road Thondebhavi Gauribidannur Taluk Dist Chikballapur 561 213 Karnataka

15.Tikaria - [Capacity (MTPA) 2.31]Tikaria Cement Grinding and Packing PlantACC LimitedTikaria Industrial AreaP.O. Tehsil GauriganjDistrict Sultanpur 227 409Uttar PradeshPhone: 91-5368-44279Fax: 91-5368-44479

Management Aspects of the Company

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CORPORATE GOVERNANCE

The importance of Corporate Governance has always been recognised in ACC. Much before Corporate Governance guidelines became applicable and mandatory for listed companies; ACC had systems in place for effective strategic planning and processes, risk management, human resources development and succession planning. The Audit Committee in ACC was constituted as far back as in 1986. The Shareholders-Investors Grievance Committee was formed way back in 1962 and the Compensation Committee was convened since 1993. The Company’s core values are based on integrity, respect for the law and strict compliance thereof, emphasis on product quality and a caring spirit. Corporate Governance therefore in ACC is a way of life.

ACC is a professionally managed Company with a majority of its Directors being Independent Directors. The Board of Directors has always consisted of persons who are professionals in their respective fields and with unquestionable integrity and reputation. The role, responsibility and accountability of the Board of Directors is clearly defined. Members of the Board have full freedom to express their views on matters placed before them for deliberation and consideration.

It is the continuous endeavour of the Board of Directors to achieve the highest standards of Corporate Governance through the adoption of a strategic planning process, succession planning for attracting, motivating and energizing human resources, identification of major risks and the way and means to manage such risks, an effective communication policy and integrity of Company’s internal control systems. The Board of Directors are also constantly looking at ways and means to ensure that the most effective use is made of the scarce resources at its disposal and that the management and employees have the freedom to take the Company forward within the framework of effective accountability.

The Annual Reports, press releases and other communication have always made full disclosures on various facets of importance to the stakeholders, particularly with regard to information relating to financial matters, company’s

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operations/performance, stock movements etc.

HUMAN RESOURCES

ACC has a large workforce of about 10,000 people, comprising experts in various disciplines assisted by a dedicated workforce of skilled persons. ACC employees, referred to as the ACC Parivar, come from all parts of the country and belonging to a variety of ethnic, cultural and religious backgrounds. ACC employees display a strong sense of loyalty to the Company and their special stellar qualities as ‘value-adding’ human capital are well known in the industry.

ACC has clearly stated guidelines concerning recruitment, termination, career advancement, performance appraisal, professional and employee ethics and code of conduct. The Company’s personnel policies and processes enshrine equal opportunities to all and non-discrimination with regard to gender, caste, creed, ideology or other opinion, whether social, political or religious. Also ensured is a due process for employee consultation and participation in organizational development and policy formulation.

1. Recruitment: - Recruitment in ACC is a very fair and transparent process with adequate opportunities to look for suitable candidates internally as well as from outside. Applicants are generally invited on the basis of specific advertisements in newspapers and websites. A Committee of officers called the Central Recruitment Committee handles the entire recruitment process comprising screening of applications, preliminary short-listing, interviews and final selection. Every attempt is made to make the selection process as objective as possible by incorporating tests of competence. In some cases, outside consultants are retained. All decisions of the recruitment committee are recorded in respect of each candidate. Candidates are informed of their short-listing and selection immediately after the interview or at the earliest thereafter.

2. Performance Management: - The Company’s performance management system is in itself a benchmark that provides ample opportunities and motivational incentives to employees so as to reward and retain good talent within the

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Company. These incentives include Performance Linked Incentives, Good Work Awards, Letters of Appreciation, Special Increments, and Promotions, Nomination to external training programmes in India and abroad, public felicitation and appreciation. Some plants have Best Employee and Employee of the Month Awards and recognition. Competent employees and those who display aptitude are invited to become Trainers themselves and receive Train the Trainer facilitation.

3. Training & Development: - Our new Performance Management System incorporates a process called Competency Assessment and Training and Developmental Needs wherein appraisers are specifically called upon to identify and assess training needs of employees at specific intervals that do not coincide with Performance Appraisals. This is so that training needs can be assessed objectively. Training is imparted to take care of an individual’s career development as well as functional and skill enhancement. Competency and Development training inputs include Skill and general performance enhancement, communication skills and Career development. Functional training needs are identified and conducted by functional departments while Corporate HR organizes competency and developmental inputs.

4. Employee welfare & perquisites: - Employee welfare receives prime attention at ACC. It has several schemes for general welfare of employees and their families. These cover education, healthcare, retirement benefits, loans and financial assistance and recreation facilities.

ACC townships have excellent schools that are often the best in the district. Education at these schools is subsidized for employees’ wards. We offer attractive scholarship allowances for children studying at places away from their parents, merit scholarships for outstanding children and financial assistance for employees’ children to pursue higher professional education.

Liberal medical benefits are made available to employees and their family members by way of reimbursements towards normal medical treatment, domiciliary treatments and special sanctions for serious illness. Each of our townships has well-equipped health care centres with qualified medical staff and

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facilities, ambulance, referrals and tie-ups with reputed hospitals for specialised treatment. In addition, there are regular health checkups, camps and programmes.

Employees are eligible to apply for loans and financial assistance for various purposes such as purchase of assets, residential premises as well as a scheme that provides for supply of cement at subsidized rates to those building their own houses.

At our cement plants and factories, employees are provided furnished and unfurnished accommodation based on their entitlements. At many locations, the employees are given free electricity, free water supply and free bus facility for nearby places and schools.

5. Employee Satisfaction:- In addition to periodic internal Employee Satisfaction Surveys, we participate in Employee Satisfaction and Work Places Surveys conducted by reputed external agencies and organisations like Hewitt Associates Grow Talent. And from time to time, ACC has also retained reputed firms like Mercer and Boston Consulting Group to study our internal work environment and employee policies and suggest areas of improvement. We share below salient points of the latest survey of employees:

People are treated fairly regardless of religion and gender

ACC is a safe place to work Management is competent in running business Employees feel good about what we do for society Proud to tell others I work here Management thinks positively

Activities Related to Corporate Social Responsibility

ACC defines Corporate Social Responsibility as the way a company balances it’s economic, social and environmental objectives while addressing stakeholder expectations and enhancing shareholder value.

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“ACC is deeply committed to enhancing its reputation and respect built over the years in industry and society for its

professional style of management based on philosophy of the best in business ethics.”

Committed to Environment Protection:-

ACC is among the first Indian companies to include commitment to environmental protection as one of its corporate objectives. Long before pollution control norms and regulatory laws came into existence, ACC inducted the use of sophisticated high efficiency pollution control equipment for cement kilns, raw mills, coal mills, power plants and coolers. That was in 1966. Today each ACC factory has high efficiency state-of-the art pollution control equipment and devices. Each of our manufacturing units has a separate Environment Section manned by a qualified environmental engineer and supporting staff. ACC is the industry leader in the urgent race to reduce CO2 emissions. Our performance is seen by independent sources to be best in class. We have established systems and procedures to manage improvements in the control of greenhouse gas and atmospheric emissions.

Energy Efficiency:-Energy is a prime concern. We have made significant strides in attaining energy efficiency through our captive power plants and the pursuit of building our capacities in clean renewable energy sources such as wind energy farms

Greening the Environment:-

Each of our cement plants has its own success story of tree plantation, greening activities, horticulture, flower and fruit cultivation and water conservation. Tree plantation and green belt development programmes have been extended to cover areas in the vicinity of our plants for the benefit of the local community. Afforestation programmes in used mines have helped transform the barren and dry ambience into lush greenery. Tree plantation is a regular and committed activity at ACC. Each One, Plant One is a message that inspires our employees.

Water Conservation

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With an avowed policy to maintain Zero Water Discharge, we continuously seek better ways to manage our water resources efficiently. The water used in plants for industrial cooling is recycled through cooling towers, water ponds and tanks. Our cement plants have converted old abandoned mines into huge reservoirs by collecting rainwater from catchments around mines. As a result, we have several outstanding examples of achievements in water harvesting and in the creation of reservoirs in abandoned mines and quarries. Some of our plants have become near self-reliant in respect of their water requirements for industrial and domestic consumption.

Transforming and Managing Wastes

ACC has achieved spectacular results in the utilization of two hazardous and pollutant industrial wastes - namely slag from steel plants and fly-ash from thermal power stations - to make blended cements that offer unique advantages to concrete. We were first in the use of waste sludge from the fertiliser industry to make cement. ACC is now actively engaged in the promotion of alternate fuels and raw materials and in co-processing waste materials through effective use of cement kilns. Co-processing is the act of adapting an existing industrial process in a single combined operation whereby ‘waste’ materials generated in other industrial processes may be put to gainful use as alternative fuel or raw materials in cement kilns, dryers and captive power plants. These materials include agro-wastes like rice-husk and other wastes such as plastics, bagasse, lubricants, paints, used tyres, municipal and domestic solid wastes. ACC takes pride in extending its waste management services to a wide range of industries in the country that generate hazardous and non-hazardous wastes.

Community & Rural Welfare

ACC’s community development activities revolve around the under-privileged community that lives in the immediate vicinity of ACC’s cement plants and is thus more dependent on it. The range of ACC’s activities begins with extending educational and medical facilities and goes on to cover vocational guidance and supporting employment-oriented and income-generation projects like agriculture, animal husbandry, cottage industries

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by developing local skills, using local raw materials and helping create marketing outlets.

Education

Education is imparted not only to children of ACC employees but also more importantly to children from rural areas who do not have access to any medium of information or education. ACC schools maintain high standards and are open to other children of the vicinity. Often these schools are the most preferred centers of learning in the district and adjoining areas. Wherever possible, ACC provides funds and infrastructure to help set up local schools, colleges and centers for learning and education.

Healthcare

ACC takes pride in providing various forms of medical assistance to the families of our employees and also to all those living in surrounding villages. Each factory has a medical centre with full-fledged doctors and the latest of basic equipment. Mobile medical services are provided in the vicinity and regular medical camps are held to eradicate diseases, offer medical help, treatment and preventive care.

HIV/AIDS - Workplace Policy

ACC is desirous of playing a meaningful role in the nationwide effort to eradicate HIV/AIDS and has pledged to support the Confederation of Indian Industry in their initiative. ACC recognizes that a fundamental step in this respect involves a clear statement of the company’s internal policy to deal with employees affected by HIV/AIDS. CII has framed a Code of Practice for Industry to guarantee and safeguard the rights of employees infected and affected by HIV/AIDS. We adopt this as ACC’s internal workplace policy for HIV/AIDS.

HIV/AIDS treatment - Anti Retroviral Treatment Centres:

In close consultation with the Confederation of Indian Industry (CII), the management of ACC decided to step forward to participate

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in the national effort to eradicate the HIV/AIDS virus that we recognize as being among the country’s most important public health issues.

As a first step, we announced a Workplace policy for HIV/AIDS that protects the fundamental human rights of employees who may unfortunately become affected by HIV/AIDS, while also ensuring that these affected persons get proper care and treatment. Next we decided to set up an Anti Retroviral Treatment Centre for HIV/AIDS treatment. We chose to put up this project in Wadi in the state of Karnataka where we have the largest of our cement plants. Karnataka also happens to be a state where the virus is highly prevalent.

Disaster Relief

ACC and its employees make timely contribution to help in any national disaster. This is done both at the corporate level, by local units and employees. Apart from the Kargil cause, collective contributions by way of cash, food and clothing has been sent to help victims of calamities such as the Latur earthquake, Himachal Pradesh floods, Orissa cyclone, Gujarat earthquake, Tsunami and floods in Maharashtra.

Technical Aspects of the Company

IT INFRASTRUCTURE: - ACC was among the first Indian companies to adopt automation of information technology. ACC started computerizing our systems as early as 1968 - a commitment to progress through the harnessing of relevant available technologies, a practice that continues even today.

have travelled a long way from our early days when we were using simple keypunching machines. Significant improvements have been made in application systems and infrastructure since then - from Batch processing to on-line systems, from IBM 1401 and Data General System to the latest Linux/UNIX and Windows 2003 based machines. We have made timely transitions determined by available technologies and business requirements.

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In February 2007 the company made a quantum jump from in-house developed systems using Oracle 9i and Developer 6i to an ERP (SAP) based solution. This decision was based solely on our strategic objectives and the business benefits that we expect to derive from implementing such a solution. With this move we also aligned people, business processes and technologies across the country.

The Company has an Intranet Portal called ‘Accelerate’ which is dedicated to employees. The portal’s content is based on Personal information relating to Human Resource matters, Performance Management, as well as other information of use to employees such as the latest news on company affairs, developments on sustainable development, house magazines and newsletters.

Being a large organization with a countrywide network of manufacturing, marketing and R&D centres, we have invested in the creation of a comprehensive infrastructure that allows free flow of information across the organization. This enables almost instant communication between all levels in the organization. A hybrid WAN network connects each of our 275 plus locations. A judicious mix of VSAT and VPN links ensures adequate connectivity between these locations. Each manufacturing location has a well designed LAN to meet its needs.

IT in ACC is well placed to master future expansions of its core businesses.

Note:- Patni Computer Systems installed India’s first Data General computer in ACC in 1978 and deployed a team of their best employees to manage it. The team comprised the legendary Narayanamurthy, then among the earliest employees of PCS. They were given an office in Cement House. Later when he and others from PCS established Infosys Technologies in Bangalore 1981, ACC was among their first customers.

Technical Expertise: - ACC has a unique track record of innovative research, product development and specialized consultancy services. With more than seven decades of rich experience in prospecting for raw materials, mining, setting up and managing cement plants of different sizes, technologies

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and processes. It is proficient in managing captive thermal power plants and now also have a few power plants based on wind energy.

Its large team of talented scientists, engineers and technocrats are experienced in meeting the needs of the cement industry both in India and in many other countries.

In particular it has a successful track record in modernizing old technology based cement plants to improve their operational economy and also in the design & engineering of new technology based cement plants.

Engineering skills and services: - ACC houses a wide range of engineering skills and services under one roof

Raw material evaluations and optimization. Feasibility Studies. Engineering Consultancy Services for green field / brown

field cement plants. Up gradation & capacity enhancement of existing cement

plants. Management and operation of cement plants. Technical training & skills development.

SUBSIDIARIES AND ASSOCIATES

ACC Concrete Limited

ACC set up India's first commercial Ready Mix Concrete (RMX) plant in Mumbai in 1994 which together with the promotion of bulk cement has played a key role in redefining the pace and quality of construction activity in our large cities and mega infrastructure projects.

The Ready Mix Concrete business of ACC was reorganized as a separate wholly owned subsidiary which was incorporated as ACC Concrete Limited with headquarters in Mumbai. Today this company is one of the largest manufacturers of Ready Mix Concrete in India with a countrywide network of over 30 plants, with modern equipment and a large fleet of transit mixers.

ACC Mineral Resources Limited

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ACC's wholly owned subsidiary, The Cement Marketing Company of India Limited, was renamed as ACC Mineral Resources Limited (AMRL) in May 2009 with an objective of securing valuable mineral resources, such as coal for captive use. ACC Mineral Resources Limited has already entered into Joint Venture arrangements for prospecting, exploration and mining coal from the coal blocks in Madhya Pradesh and West Bengal. The company is also exploring other opportunities for securing additional coal and gypsum resources in India and abroad

Bulk Cement Corporation (India) Limited

Situated at Kalamboli, in Navi Mumbai (formerly New Bombay), this company caters to bulk cement requirements of the city of Mumbai and its environs. It has two cement storage silos with a capacity of 5,000 tons each. The plant receives cement in bulk from ACC plants at Wadi. The plant has its own special purpose railway wagons and rakes and its own railway siding. The first of its kind in India, BCCI is equipped with all the facilities required by increasingly sophisticated construction sites in a bustling metropolis, including a laboratory, a fleet of specialized trucks and site silos for the convenience of customers and is capable of offering loose cement in bulk-tanker vehicles as well as packed cement in bags of varying sizes from 1 tonne down to 25 kg bags. BCCI is situated strategically on the outskirts of Mumbai, just off the new Mumbai-Pune Expressway. It is a landmark structure spread over 30 acres of land.

Lucky Minmat

ACC acquired 100 per cent of the equity of Lucky Minmat Private Limited. This company holds limestone mines in the Sikar district of Rajasthan, and helps supplement limestone supply to the Lakheri Plant

National Limestone Company Private Limited

National Limestone Company Private Limited is a wholly owned subsidiary. The company is engaged in the business of mining and sale of limestone. It holds mining leases for limestone in the state of Rajasthan.

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Encore Cements & Additives Private Limited

ACC acquired 100 percent of the financial equity of this company which is a slag grinding plant in Vishakhapatnam in coastal Andhra Pradesh. This company became a wholly-owned subsidiary of ACC in January 2010.

Chapter 2Organizational Structure and Hierarchy

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Organizational Structure and Hierarchy

ACC Ltd has a very unique organisational structure which is highly efficient to run the various functions of the organization. It is structured in such a manner that the smooth flow of information is in all direction horizontal and vertical is maintained. ACC is also known for its distribution system which is directly related to its organizational structure. Head office of ACC Ltd is in Delhi and it controls all the regional offices, sales units, and area offices.

Head Office

Regional Offices

Sales Units

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Area offices

Ware Houses

Hierarchy of Various Offices to Control the Functions

Details of the OfficesAs mentioned above ACC has formed offices of different level to control its business functions. These offices are based in the various parts of the country according to the requirement. Each office has its own Head who report to its superior in the organizational hierarchy.

1. Head Office: - Head office of ACC ltd is in Mumbai. It controls all the functions of the organization. It has the office of the Chairman, Deputy Chairman, Managing Director (MD), and also the offices of all the Corporate Heads including Board of Directors.

2. Regions:- ACC has divided the whole country in three Regions.

1. North Region 2. South-West Region3. East Region.

Each Region has a Regional Office. This Office reports to the Head office in Mumbai. Every Regional Office has a Business

Head, Sales Head and Departmental Heads. Our study is going on in North Region and its Regional Office is in Delhi.

3. Sales Units:- Each Region is divided in various Sales Units.

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a. North Region:-i. SU Punjabii. SU Bhopaliii. SU Chandigarhiv. SU Lucknowv. SU Deharadun

b. South-West Region:-i. SU Hubliii. SU Bangaloreiii. SU Nagpur

c. East Region:-i. SU Raipurii. SU Asansoliii. SU Kolkata

In every SU office there is a Sales Head, Sales Unit Incharges as per Department, Sales and Marketing Expertise, Deputy Manager and Joint Manager.

4. Area Office : - Area Office is smaller unit than SU’s. Each SU has many area offices. SU itself also could be an area office. This project is going on in the east singhbhum

Ware House Controlling Point: - Each area office has Ware Houses from where the actual distribution of the cement takes place to various dealers of the district.

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Chapter 3Product and Services

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Products

ACC's brand name is synonymous with cement and enjoys a high level of equity in the Indian market. Its range of cements and blended cements is marketed through a network of 19 Sales Units, 54 Area Offices, and 194 warehouses. This is backed by a countrywide network of over 9,000 dealers who, in turn, are assisted by their sub-dealers.

ACC’s marketing; sales and distribution processes are industry standards. Although it takes immense pride in having supplied some of India’s most admired projects, ACC is essentially a people’s brand of cement with more than 80 per cent of sales made through an extensive dealer network that covers every state in India. Its customer base represents the masses of India - individual homebuilders in small towns, rural and semi-urban India. ACC cement enjoys an image of assuring consistency and of high quality backed by in-house research and expertise.

Complementing this is a unique customer services cell comprising qualified civil engineers, who assist and advice customers with prior and post sales service. This service begins with selection of type and grade of cement (where applicable) to troubleshooting and on-site assistance.

ACC manufactures the various kinds of Portland cement for general construction and special applications. In addition to this, ACC offers two value added products namely, Bulk Cement and Ready Mix Concrete.

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CEMENT

ACC manufactures the following types of cement, in addition to which, it provides Bulk Cement and Ready Mix Concrete.

1. Ordinary Portland Cements:-

43 Grade Cement (OPC 43 Grade)

ACC Cement is the most commonly used cement in all constructions including plain and reinforced cement concrete, brick and stone masonry, floors and plastering. It is also used in the finishing of all types of buildings, bridges, culverts, roads, water retaining structures, etc.

What is more, it surpasses BIS Specifications (IS 8112-1989 for 43 grade OPC) on compressive strength levels.

ACC Cement is marketed in specially designed 50 kg bags.

53 Grade Cement

This is an Ordinary Portland Cement which surpasses the requirements of IS: 12269-53 Grade. It is produced from high quality clinker ground with high purity gypsum.

ACC 53 Grade OPC provides high strength and durability to structures because of its optimum particle size distribution, superior crystalline structure and balanced phase composition.

It is available in specially designed 50-kg bags.

2. Blended Cements:-

Fly Ash Based Portland Porzolana Cement

This is special blended cement, produced by inter-grinding higher strength Ordinary Portland Cement clinker with high quality processed fly ash - based on norms set by the company's R&D division. This unique, value-added product has hydraulic binding properties not found in ordinary cements.

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It is available in specially designed 50-kg bags.

What is special about ACC Fly-ash based PPC?

ACC Fly-ash based PPC is made by intergrinding high strength clinker with specially processed flyash. This imparts a greater degree of fineness to ACC Fly-ash based PPC cement, improved workability properties while mixing, and makes concrete more corrosion resistant and impermeable. All of this makes for better long-term strength and improved corrosion resistance and therefore, greater life for your constructions. ACC Fly-ash based PPC is an eco-friendly cement.

What are the advantages of using ACC Fly-ash based PPC ?

In concrete made from ordinary cements, moisture reacts with calcium hydroxide in concrete to form calcium bicarbonate, which leaches out of the concrete, leaving pores that reduce its strength. ACC Fly-ash based PPC has ingredients which react with calcium hydroxide to form CSH gel, to provide additional strength, which actually makes the concrete grow in strength over the years. It also produces less heat of hydration and offers greater resistance to the attack of aggressive waters than normal Portland cement.

Can ACC Fly-ash based PPC be used for all jobs in construction?

ACC Fly-ash based PPC easily replaces OPC and provides additional advantages for practically all types of construction applications - commercial, residential, bungalows, complexes, foundation, columns, beams, slabs and RCC jobs. It is especially recommended for mass concreting work, and where soil conditions and the prevailing environment take heavy toll of constructions made with ordinary cements.

How ACC Fly-ash based PPC stand up to corrosive environments?

Due to its inherent characteristics, ACC Fly-ash based PPC makes very corrosion resistant concrete that is superior to

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concrete made with OPC. It is more impermeable to oxygen, CO2, chlorides, etc. Leaching of alkalis is reduced and the alkaline environment around steel is maintained.

Portland Slag Cement

This is slag-based blended cement that imparts strength and durability to all structures. It is manufactured by blending and inter-grinding OPC clinker and granulated slag in suitable proportions as per our norms of consistent quality. PSC has many superior performance characteristics which give it certain extra advantages when compared to Ordinary Portland Cement

It is available in specially designed 50-kg bags.

What is special about ACC PSC?

Compared to OPC, ACC PSC imparts some important additional advantages

Reduction in free lime leaching. Ultimate higher strength. Improved workability reduced bleeding as well as

segregation and corrosion. Denser, less permeable concrete and mortar. Better resistance to sulphates, chlorides, and CO2 and

alkali-aggregates reaction. Less heat, reduced plasticity and drying shrinkage. Increased static modulus of elasticity. Increased serviceability with less deflection of members

and micro cracks and reduced cost of construction and maintenance.

All these factors make for a strong, durable, and longer lasting construction. ACC PSC benefits the structure, protects the environment by reducing CO2 emissions and helps conserve energy. That is why it is often referred to as eco-friendly cement.

The Federation International de la Precontrainte (FIP) Guide to Good Practice for "concrete constructions in hot weather,"

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states that if concrete is likely to be exposed to an environment of sulphate-bearing water or soil, it is preferable to use a proven type of blended cement containing ground granulated blast furnace slag. Concrete made with ACC PSC has a higher density than concrete made with OPC, and hence it improves the durability of concrete structures.

It can, therefore, be used for all purposes where OPC or PPC is used.

3. BULK CEMENT:-

Yet another first in ACC’s seven-decade history of cement in India has been the introduction of Bulk Cement, an alternative to bagged cement, which is of particular advantage to large consumers of cement. Internationally, the trend is to move cement more and more in loose form rather than bagged. In fact, over 90 percent cement in the USA, and other European countries is transported and sold in bulk, unlike in India, where only one percent is transported in bulk.

ACC Bulk:-

ACC - in a joint venture with the government of India - has set up the most sophisticated bulk unloading terminal at Kalamboli, Navi Mumbai, to bring its cement from the ACC plant at Wadi in Karnataka.

The terminal at Kalamboli has three 5000-tonne-capacity silos to store cement which is transported in specially designed railway wagons. The company has its own fleet of 15-tonne road-bulkers in which cement is then brought to the end-user's construction site. The terminal has three modes of evacuation: bulk tanker trucks, jumbo bags (one and 1.5 tonnes), and 50 kg bags. Mechanized loading and unloading of cement reduces manual intervention to the barest minimum.

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At the site, the cement is pumped into portable 15-tonne steel silos (supplied by ACC). Not only do these silos require less storage space than conventional bag storage godowns, but also the silos are designed to facilitate free-flow discharge of the cement. This further underscores another of ACC Bulk’s characteristic - ‘untouched by hand’. And dust collecting silos safeguard against dust pollution.

A well-equipped laboratory ensures that the testing is carried out scientifically to comply with all cement quality norms. The site silos, which are a must at the customers’ sites, are provided on mutually agreed terms, and eliminate a major cause of concern to the end-user. Pilferage also is made impossible.

The bulk tanker for bulk cement transport and the silo at site to receive this cement are a welcome innovation from the conventional and time-consuming bag distribution system. Inventory in terms of locked-up capital is now the concern of the supplier.

Bulk cement helps eliminate the need for construction and maintenance of large and unwieldy godowns for cement at construction sites. The measured quantity extracted by the discharge system ensures correct weight and eliminates human error.

Advantages of using ACC Bulk

Assured quality. No handling from the factory to

your site, therefore exact weight Tamper proof delivery, therefore

no adulteration possible Immediate delivery, therefore no

need to stock inventory Order only when you are ready

to use, so your money is not locked up

Steady supply

4. READY MIX CONCRETE

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Redefining the pace and quality of construction

ACC set up India's first commercial Ready Mix Concrete (RMX) plant in Mumbai in 1994. Today this business has been reorganized as a separate company called ACC Concrete Limited which is one of the largest manufacturers of RMX in India with over 40 modern plants in major cities such as Mumbai, Bangalore, Kolkata, Chennai, Delhi. Hyderabad, Goa, Pune and Ahmdabad.

ACC's pioneering efforts in introducing RMX coupled with the promotion of bulk cement handling facilities have been responsible for redefining the pace and quality of construction activity in metropolitan cities and in mega infrastructure projects.

Numerous landmark structures in India's metro cities have been built using ACC Concrete - mega housing projects, townships, commercial complexes, factories, bridges, flyovers, roads and railways. Prestige projects such as the Mumbai-Pune Expressway, the Indore-Dewas bypass, Kolkata and Delhi Metro Rail projects. Most of the new bridge and fly-overs in Mumbai used ACC Concrete and could perhaps not have been completed on schedule without it.

What is Ready Mixed Concrete

Ready Mixed Concrete, or RMX as it is popularly called, refers to concrete that is specifically manufactured for delivery to the customer's construction site in a freshly mixed and plastic or unhardened state. Concrete itself is a mixture of Portland cement, water and aggregates comprising sand and gravel or crushed stone. In traditional work sites, each of these materials is procured separately and mixed in specified proportions at site to make concrete. Ready Mixed Concrete is bought and sold by volume - usually expressed in cubic meters. RMX can be custom-made to suit different

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applications.

RMX - Adding value to concrete

Ready Mixed Concrete is manufactured under computer-controlled operations and transported and placed at site using sophisticated equipment and methods. RMX assures its customers numerous benefits:

Uniform, consistent and assured quality of concrete Flexibility in concrete design mixes Easier addition of admixtures Faster and speedier construction Reduced inventories, material handling and storage of

raw materials at sites Savings in labour requirements, labour costs and

supervision of labour Reduced wastage of materials

The use of RMX is an environmental friendly practice that ensures a cleaner work place and causes minimal disturbance to its surroundings. This makes its utility more significant in crowded cities and sensitive localities.

In contrast to this, conventional methods of making, transporting and placing concrete at most construction sites are somewhat labour-intensive and suffer from practices which may be erratic and not very systematic.

Therefore the use of Ready Mixed Concrete can prove to more cost effective in the longer term while ensuring that structures are built faster and using concrete that comes with higher levels of quality assurance.

ACC Concrete - State-of-the-art

ACC Concrete is manufactured at modern fully computerized plants which have state-of-the-art machinery and equipment by machinery suppliers of global repute - fully automated Batching Plants, well-equipped laboratories for testing raw materials and fresh concrete, Transit mixers, Mobile and

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stationary pumps capable of discharging concrete at high elevations and over long distances.

A large fleet of the latest models of Transit Mixers and Concrete Pumps to suit different terrains and work sites ensures that our customers get timely and uninterrupted supply of premium quality concrete as per their requirement as well as its efficient and timely placement at the work site.

Quality - the 'Q' factor in ACC Concrete

ACC Concrete is supplied in a variety of grades and compositions to meet specific demands of customized applications - from simple requirements for small homes to High Performance Concrete to meet the complex needs of mega projects.

Each of our plants has a fully equipped laboratory with the latest in testing machines to carry out routine and detailed tests of raw materials as well as fresh finished concrete. These in-plant laboratories are backed by the facilities of ACC's reputed Research centre at Thane which serves as a focal research and testing laboratory centre for cement and concrete.

ACC Concrete customers can avail of a range of options in our testing and quality control services - from simple tests and analyses of raw materials and concrete to non-destructive testing of hardened concrete.

ACC Concrete - a wide range

High Strength Concrete High Performance Concrete Self-levelling Concrete Self-compacting Concrete Coloured Concrete Concrete made with binary and ternary blends of

cements Early strength Concrete

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Fibre reinforced Concrete

ServicesBulk Cement – customer services

The other features of this project include 125 wholly owned railway wagons which ensure that the manual intervention for loading and unloading of cement is minimal. The cement, until it reaches the terminal and the customer, is untouched by hand. The terminal has three modes of evacuation, namely in Bulk tanker trucks, in Jumbo Bags (1 tonne and 1.5 tonne) and traditional bags of 50 and 25 kgs.

Cement is now delivered by weight, duly weighed on electronic weighbridges. The cement godown for the storage of bags, has virtually become part of history. Instead you have tubular steel silos, which take up much lower space and at the same time are designed to ensure free flowing discharge of the cement. The dust collectors installed on the silos ensure a pollution free environment. The mechanization of the unloading process enables the total quantity of cement (15 tonnes) to be unloaded into the site silo in 25 minutes flat. Cement is now delivered just on time.

A well-equipped laboratory ensures that the testing is carried out scientifically to comply with all cement quality norms. The site silos which are a must at the customers sites, can be provided at mutually agreed terms, eliminates a major cause for concern for the end-user. Pilferage is also made impossible.

ACC BULK has gone one step further. A mini batching plant has now been designed which at a very reasonable cost, ensures quality concrete while reaping the benefits of bulk cement. Continuous innovations like these make ACC BULK, the cement of choice.

Once at your site Bulkers would discharge near 100 percent cement into the airtight, weather proof site silo, with a capacity of 15 tonne. A discharge system, either mechanical or electronic could be additionally supplied and unloading 15

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tonne of cement into a silo would be effected in about 15 minutes. No storage sheds and no labour are required for unloading.

Complementing all this is a dedicated team of service personnel to ensure trouble-free operations of site silos and auxiliary equipment. They are just a phone call away - both the marketing office in Mumbai, and also at the plant at Kalamboli.

Customer profile

Prospective customers for bulk cement are RMX manufacturers, institutions, government agencies, contractors, builders, manufacturers of pre-cast fabricated concrete blocks, asbestos sheets and many more. Many of them have their own batching plants and are using bulk cement.

(READY MIX CONCRETE) Customer Service

ACC's fleet of Transit Mixers and Concrete Pumps helps ensure that our customers in cities like Mumbai, Bangalore, Kolkata, Delhi, Chennai, Hyderabad, Goa and Pune now just a phone call away from ACC Concrete - freshly blended premium quality concrete that is door delivered and efficiently placed at site on the day of concreting.

For very large constructions or infrastructure works, we can consider dedicating an entire RMX plant catering exclusively to the project sites.

In addition, our marketing team, which includes qualified and experienced engineers and concrete technologists, can assist customers in defining and specifying quality standards, designing specific concrete mixes to meet the most challenging of requirements as well as sourcing reliable supplies of good quality raw materials.

PROJECT ENGINEERING:-

Worldwide clientele

ACC’s project engineering consultancy team has successfully handled a diverse range of assignments in different parts of the world from geological prospecting to

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management and operation of plants as well as modernizing and upgrading old cement plants and providing technical training. We are fully equipped to service the needs of the global cement industry.

Our project engineering consultancy and project management expertise has been tested against the best in the world.

Saudi Arabia

Operation and management of a cement plant of capacity 4 million TPA (tonnes per annum) owned by Yanbu Cement Company, Saudi Arabia (YCC). for the past 29 years. This contract was first awarded to us in 1979 amid stiff international competition. Since then, annual cement production at the plant has always exceeded guaranteed targets.

Nigeria

Comprehensive Engineering Consultancy services to Dangote Industries Ltd., Nigeria for their new greenfield cement plants of capacity 2 x 7000 TPD (tonnes per annum) at Obajana and up-gradation of their existing two old cement plants at Benue to 3500 TPD each. Operation and Management of these plants, post commissioning.

Ethiopia

Engineering Consultancy Services & Supervision of 1.4 MTPA Greenfield Cement Plant for Mugher Cement, an Ethiopian Government Enterprise.

Sudan

Plant health assessment, de-bottlenecking, Operation and Management guidance to Atbara Cement Plant, Sudan owned by Sudanese African Company, Saudi Arabia.

United Arab Emirates (UAE)

Engineering consultancy services to Blue Circle, UK for the one million TPA (tonnes per annum) Sharjah Cement Plant, Sharjah.

CUSTOMER SERVICES:-

offACC is essentially a

people’s brand of cement with more than 80 per cent of sales made through an extensive dealer network that covers every state in India. Its customer base represents the masses

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of India - individual homebuilders in small towns, rural and semi-urban India.

Going beyond the supply of cement, we offer ACC Help services to share knowledge about the process of home building and correct procedures of product usage.

Our Regional Offices have Customer Services Cells manned by qualified Civil Engineers who interact with customers to assess their needs and problems, offer advice before and after sales including educating users and customers on correct usage of cement and concrete and good construction practices.

ACC reaches out to its customers, home builders and engineers in the following ways:

ACC Help Centres: For personal guidance on the right construction practices.

ACC Help Literature: Easy-to-understand construction guides.

ACC Help Vans: Mobile help services. Our engineers in vans assist you at your site

www.acchelp.in : an interactive website for all your construction related questions.

Indian Concrete Journal : the country’s oldest civil engineering journal

ACC Help Centres

The first of its kind in India, the ACC Help Center, now available in several cities, provides basic information and guidance to customers on construction practices and various home building-related procedures - such as pre-construction worries on stamp duty, selection of architects and appropriate service providers, estimating budgets. Issues from purchasing land, budgeting to choice of material and planning of the construction process are elaborated, step-by-step. Tutorials, conveniently scheduled in the evenings, guide the customer, through the relevant stages of house construction. The center distributes specially designed booklets on each stage of building one’s “Dream House”. These publications are available in English, Hindi and major regional languages. To look for an ACC Help Centre nearest to you visit www.acchelp.in or write to [email protected]

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ACC Help Literature

The ACC Help Center distributes specially designed booklets on each stage of building one’s "Dream House". These publications are available in English, Hindi and major regional languages. For more information visit www.acchelp.in or write to [email protected]

ACC Help Vans

Mobile touring vans to visit construction sites to educate users and masons at site and provide certain specialized services like supervision during slab casting on demand.

Indian Concrete Journal

The "Indian Concrete Journal", the country’s oldest civil engineering journal, continues to be published by ACC. It reaches out to practicing and consulting engineers, architects, builders, contractors and government departments. It aims to disseminate the latest information and technological progress in civil and structural engineering, cement and concrete technologies, construction methods and practices. For more information visit www.icjonline.com.

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Chapter 4SWOT Analysis

Strengths

1. Privilege dealer and sub-dealer policy has created a

image of quality product shops for the dealers and sub-

dealers.

2. An effective distribution system.

3. A well framed network of dealers and sub-dealers in the

urban and rural areas.

4. A brand image of quality product in the eyes of the

public.

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5. Lucrative schemes and discounts for its dealers and

sub-dealers.

Weaknesses1. Shortage of material during the peak season of sales

demotivates the dealers.

2. High prices in comparison to other brands are

preventing ACC to gain popularity in the rural areas.

Opportunity1. There is a boost in the development of nearby rural

areas of jamshedpur and rural area and other districts

which will generate a great demand for cement.

2. Development work going beside the newly constructed

highway under the Swarnim Chaturbhuj yojna.

3. Change in the mentality of the rural people from cost to

quality has generated demand for ACC.

4. Increase in the intensity of Standard marketing activity

will generate its demand in the rural areas.

Threats1. Entry of the new brands in the market.

2. Conflict between the Privilege dealers and sub

dealers.

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3. New production plant of competitive brands in nearby

areas.

4. High intensity of promotional activity on national level

by competitive brands.

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Chapter 5Research Problem

Introduction to the Topic:

Before going to the research to the research problem it is very necessary to know the topic of the research. Topic of this research is-

“Sales and Promotional Activities of ACC Vis-à-Vis its Competitors”

Reason behind choosing this topic is that cement industry is in reality a sales and target based industry. In this industry the competition is very intense. Regularly the competing brands use new methods to capture the maximum share of the market. So to retain the maximum level of sales in the market it is very necessary to know new the ideas and strategies of the competitors which they are applying to increase their sales.

So to utilize this opportunity of summer training project I was assigned this topic so that through this project report I

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could help the organization to understand the new trend of the market.

Research Problem is in reality related to the topic of the research. As it is pointed to the objectives on which the research is focused. By writing the research problem the researcher tries to define the topic more specifically that “What are the facts on which emphasis should be given in the research”. During the facts finding of research generally we get lots of data and points which can distract the researcher from the objective of the research if the research problem is not clearly known to each and every individual involved in the research.

A researcher should always keep the research Problem in mind in each and every step of the research. As started from the introduction of the research- While introducing the topic of the research the researcher should only put those points which are relevant to the topic. Same should be done in other parts of the research also.

There is one very easy way to find out the research problem. We can find the research problem by describing the Objective and Scope of the Research.

Objective and scope of the research:

Objective

1. To find out the possible competitors of ACC.2. To find out kind of sales and promotion activity being

done in the cement industry.3. To find out the level of sales and promotion activity of

ACC is doing in the market.4. To find out the type of sales and promotion activity being

done by the competitors of ACC.5. To find out the satisfaction level of the dealers, retailers

and sub-dealers with the sales and promotion activity of the companies.

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Scope

1. This research will make able to understand the cement industry in a better way.

2. It will describe the sales and promotion activity of the cement industry.

3. It will find out that what is the level of sales and promotion activity of the cement industry so that the better strategies could be formulated.

4. It will help the organization to understand their possible competitors and also their strategies to capture the market share.

5. It will disclose the ground realities of the sales and promotion activities of the organization itself.

Research problem in this Report:-

If we want to state the research problem of our topic we need to describe the topic in a broad manner. The aspects which should be covered during the research of this topic they are as follows:

i. What is sales promotion activity?ii. What kind of sales promotion activity is used in the cement

industry?iii. What kind of sales promotion activity is being used by the

ACC?iv. Who are the main competitors of the ACC in the market?v. What are the sales promotion activity being used by the

competitors of ACC?

The topic of the research is described above in an interrogative form. After describing it is clear that the research problem of this topic is-

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“To find out the possible competitors of ACC in the market and what are the Sales and Promotion activity

being done by them?”

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Chapter 6Research Methodology

Research DesignTo formulate a good research design it is necessary to

know that what kind or what nature of research is to be

conducted.

Nature and objective of the research- Nature of

this research is descriptive because the responses which are

required for the research should not be confined in any

boundary. The organization wants to know that “what kind of

opinion its dealers have about it” and also the opinion about

the competitor brands of the organization. Due to this nature of

research the questionnaire should have open ended questions.

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The company also want to know its position in the market so

few close ended questions is also required.

Type of Data- This research is based on the activities

being done by the Cement Companies in the open market. As

there are near about 56 companies in the Indian cement

industry although all of them are not active in all over India. But

few of them have captured a major share in the country. Now

to find out the activities being done in the market it is

necessary to visit the market and to ask from the people of the

market. Now one more thing should also be kept in mind that

the nature of the market depend on the environment of that

area so to gather the data it is necessary to survey the market

because market changes rapidly no previous data is reliable

for the study.

So in this research Primary Data is used.

Method of data collection- In this research as

described earlier primary data is required. Best method to

collect this data is Survey Method.

In this research according to the requirement of the

research- Open ended questions, close ended question based

on Five point Likert scale and objective type question are used.

Sample Design

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The objects which are to be studied in the research are the

cement companies.

The units are those areas where these cement brands are

sold out. These areas are distributed in various districts nearby

the area of research.

The sample is to be drawn from the large number of

dealers and retailers who deal in various cement brands.

Sample Size: - As there are more than 1000 dealers,

retailers and sub-dealers in the area office Moradabad. Time to

complete this research is limited.

After discussion with the supervisor and Head of the area

office I decided to take Sample Size of 150 dealers, retailers

and sub-dealers including all in it.

Sampling Technique: - In this research Judgement

Sampling Technique is used.

Area of Study: - Areas of study in this research are the 8

districts, which comes under the Area Office Moradabad of ACC

Ltd. These districts are Moradabad, Rampart, Chandausi, Bijnor,

Bareilly, Badaun, Pilibhit and J.P. Nagar.

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Chapter 7Data Analysis and Interpretation

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Before starting the analysis of the data few points should be made clear so that the analysis will be easy to understand.

1. An individual dealer and retailer can sell any number of brands.

2. Although the population of this research is 150 but as one can sell many brands so in few questions number of opinion is used in place of number of population. These types of questions will be indicated by (*).

3. Question in both the questionnaire for a certain reason which is described in the interpretation of the question.

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Question number-1 was kept common for both questionnaires so the analysis is also being done together. It is done so to get the view of market share of the ACC.

Ques. 1- Number of companies you are dealing with and which are those companies?

i. Total Number of Brands active in the area of study= 14 Companies.

ii. Total No. of Dealers including ACC Privilege and other brands = 39

iii. Market share of the ACC is as follows-

No. of respondents

Percentage (Base 150)

ACC Privilege 31 20.6%

Other Brands 119 79.4%

Table-1

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Figure 1

Note: - 79.4% of other brands also consists those non registered retailers who sell ACC cement number of those retailers is 18.

Interpretation of the Question 1

This question was kept common so that the market share of ACC in the area could be found. It also tells that 14 different brands are active in the area including ACC. Those companies are as follows-

ACC Ltd, Ultratech, Shree ultra, Jay Pee, Mycem, Birla Gold, Ambuja, Birla Plus, Bangur, Tuff, prism, JK Lakshami, Maihar and Binani.

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Analysis of Questionnaire for Dealers:-

*Ques. 2- What do you think about each company you are dealing with?

Name of Brand No. of OpinionNo. of Positive

Opinion No. of Negative

Opinion

ACC 19 13 6

Shree Ultra 7 7 -

Ultra Tech 3 3 -

Ambuja 2 1 1

Jay Pee 4 3 1

Mycem 5 5 1

Birla Gold 2 2 -

Table-2

Interpretation of the Question 2

Positive Opinions about the companies-

1. ACC-

a. A very good company with high business values.b. Reputed Brand and has good quality.c. Satisfied with the sales of cement.d. Officers of ACC do regular visits and help to solve the

problems.e. People come asking for ACC cement it is famous in

the area.( Moradabad, Badaun, Bijnor, Rampur).f. Has good demand in the area.

2. Shree ultra-a. Has good market in the area.( Chandausi )b. Have good margins in selling.c. People demand for it.

3. Ultra Tech-a. Good quality cement.b. Fair dealing.

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c. Have demand in the market.d. Popular in the area. ( J.P. Nagar)

4. Ambuja- a. Good Brand has high quality.b. An old brand and famous among people.

5. Jay Pee-a. Old brand has good image in the market.b. People demand for it.c. Gives good margins.

6. Mycem-a. Gives high margins.b. People of company regularly visit.c. Easily available.d. People who want low price cement demand for it.

7. Birla Gold-a. Popular company.b. Have margins.c. Satisfied with it.

Negative Opinion about Companies-

1. ACC-

a. High rates and low margins.b. Shortage of material.c. In case of shortage of material shop remains empty

and gives wrong message to customer. (Privilege Case)

d. Few dealers do not deal fairly which create problem for others.

2. Ambuja-

a. People from company never visit.b. Loosing market rapidly.

3. Jay Pee-

a. Day by day reducing demand.b. Lack of distribution.

4. Mycem-

a. Not so much popular in all areas.

*Ques. 3- Performance of companies:-

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Quality of product?

3. ACC- Out of 19 responses of ACC

17 Said- Very Good

2 Said- Good

4. Shree Ultra- Out of 7 responses

7 Said- Very Good

5. Ultra Tech- Out of three responses

3 Said- Very Good

6. Ambuja- Out of 2 responses

1Said- Very Good

1 Said - Good

7. Jay Pee- Out of 4 responses

4 Said- Very Good

8. Mycem- Out of 5 responses

4 Said- Very Good

1 Said- Good

9. Birla Gold – out of 2 responses

2 said – Very Good

Timeliness of Material?

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1. ACC- Out of 19 responses

14 said- Very Good

3 said - Good

2 said – Average

2. Shree Ultra- out of 7 responses

7 said – Very Good

3. Ultra Tech- out of 3 responses

3 said – Very Good

4. Ambuja – out of 2 responses

2 said – Very Good

5. Jay Pee – out of 4 responses

4 said – Very Good

6. Mycem – out of 5 responses

5 said – Very Good

7. Birla Gold – out of 2 responses

1 said – Good

1 said - Average

Redress of Problem?

1. ACC- out of 19 responses

13 said – Very Good

2 said – Good

3 said – Average

2. Shree ultra – out of 7 responses

7 said – Very Good

3. Ultra Tech – out of 3 responses

3 said – Very Good

4. Ambuja – out of 2 responses

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1 said – Good

1 said - Poor

5. Jay Pee – out of 4 responses

4 said – Very Good

6. Mycem- out of 5 responses

4 said – Very Good

1 said - Good

7. Birla Gold- out of 2 responses

1 said – Very Good

1 said – Average

Customer demand?

1. ACC – out of 19 responses

13 said – Very Good

5 said – Good

1 said – Average

2. Shree Ultra – Out of 7 responses

7 said – Very Good

3. Ultra tech – out of 3 responses

3 said – Very Good

4. Ambuja – out of 2 responses

1 said – Very Good

1 said - Good

5. Jay Pee – out of 4 responses

3 said – Very Good

1 said - Good

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6. Mycem – out of 5 responses

2 said - Very Good

3 said - Good

7. Birla Gold – out of 2 responses

2 said – Average

Interpretation of the question -3

Intension behind this question was just to get an overview of the competitive brands in the market and there activeness in the market. As we can see that responses of ACC are far more than other companies.

The points which are of concern for the companies are:-

ACC – The matter of little concern for the company is timeliness of the material and Readdress of the Problems

Shree Ultra – It has a Very Positive response from its dealers. So it only needs to increase the number of its dealers in the market.

Ultra Tech – It has Good response but the matter of its concern is its presence in the market which is very low.

Ambuja – Condition of this brand is not good in the market. First problem is its presence and second problem is Redress of problems.

Jay Pee – Responses for this company are also good but presence is of concern.

MyCem – It has shown some presence in the market and is in the row of companies which could create problem for ACC

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Birla Gold- For this company it is alarming situation and its market is going to wind up if attention will not be given to the situation.

*Ques 4- What discounts do you get from the companies?

Target discounts Cash discounts Annual discounts Hidden

No. of Responses

Get Discounts NO Discounts

ACC 19 16 responses 3 responses

Shree 7 6 responses 1 response

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Ultra

Ultra Tech 3 3 responses -

Ambuja 2 2 responses -

Jay Pee 4 4 responses -

Mycem 5 5 responses -

Birla Gold2

2 responses -

Table-3

Total No. of Responses

Get Discount (Percentage Base)

No Discount (Percentage Base)

42 90.47% 4%

Figure-2

ACC- Out of 19 responses 3 said that they do not get any

information about discounts given by the company. Rest

of 16 said that they regularly get information about “All

types of discounts and schemes”.

Shree Ultra- Out of 7 respondents 1 said that there are no

discounts given by the company to him. Rest of 6

respondents said they have information about discounts

and schemes.

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Interpretation of the Question 4

a. In this question it is clear that near about 10% of the

dealers do not have any information about discounts

provided by the companies.

b. The responses which are positive in this question most of

them get all types of discounts mentioned in the question.

c. Second thing is that this happen in the cases of the

companies which have more no. of dealers. So there could

be several reasons behind it.

Ques. 5- What are the Sales Promotion and marketing activities being done by the companies? (Ex.- Adds- Print and Electronic media, Hoardings, Shows and sponsorships, Public awareness any other.)

Interpretation of the Question 5

Through this question we wanted to know that what kind of Sale Promotion is being done by the Companies. This question was totally based on opinions and information of the dealers. Answers given by dealers about various companies are as follows:

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ACC- Doing wall paintings for ads.. Vehicle paintings are also being done, Distribution of stationary items, Small size posters and browsers.

It also distributes gifts for the masons as Caps, Key Rings, Calendars, and Diaries etc.

It also does meetings of the dealers retailers and sub dealers. Regularly organizes tours and functions.

Shree Ultra- It is using all means for its promotion as- print media, electronic media, public relations and functions.

According to the dealers Shree Ultra is continuously

Organizing meetings and functions, it is also offering gifts and tours for the dealers which are based on the quantity of sales of its cement given by the dealer.

Shree Ultra is also doing wall paintings, vehicle painting, banners, posters and distribution of calendars. It keeps on giving stationary and small gifts for masons.

It is also using print media and electronic media for the advertisement. As we can see regular advertisements of Shree Ultra ‘Red Oxide’ in the news papers and magazines. It is also promoting itself on T.V. with the name of ‘JUNG RODHAK’.

Ultra Tech- According to the dealers Ultra Tech is mostly doing its promotion on national level through advertisements on TV, News Papers, magazines and sponsorship of various activities. As ultra Tech is one of the promoters of Indian Cricket Premier League.

On local level its activities are restricted to few areas only. For local promotion it is doing Wall Painting, Vehicle Painting, banners and hoardings beside the roads.

In few areas it is continuously organizing meetings for the dealers and retailers. It also conducts the meetings and functions for the masons.

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It is also offering lucrative gifts for the dealers as – T.V.

CD player, Sound System, Washing Machines, and Tour Packages in INDIA and abroad both and many more but this all is for those who gave assigned sales. In series of gifts there are also GOLD and SILVER coins of 5gm, 10 gm and 50 gm on completing the targets.

Ambuja – Dealers of Ambuja have the opinion that this company is not doing so much for local promotion but all promotional activity is going-on on national level. We can see lots of TV ads News paper ads and ads in magazines. For local promotion sometime one or two meetings are done only nothing else is being done.

Jay Pee – According to the dealers of JayPee’s promotional activities are sufficient both on national and local level. Locally they regularly organize meetings for the dealers. They are also providing gifts and tours and other promotional tools to increase their sales in the market.

On national level they are doing ads in all type of media as print and electronic. They have made SACHIN TENDULKAR their Brand Ambassador to promote their brand.

Mycem – Dealers of this brand say that this brand is not doing any kind of promotional activity. They say that it only organizes meetings on the name of promotion. Else of this only wall painting and vehicle painting could be seen. No media ads could be seen of this brand.

But there is one thing which it is doing and dealers sell its material that is giving high margins. Yes during this research I found that this is the brand which is providing maximum cash benefits to the dealers and retailers which attracts them to sell the material of Mycem. Not only this but few of the dealers said that they don’t want any gift if the margins in selling the material is so high.

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The maximum margin which I found in selling one bag of cement is 25 Rs per bag and this was by Mycem.

Birla Gold – condition of promotional activity of this company is not sufficient according to the dealers of this company. They say that it is doing nothing neither nationally nor locally. Nor it is organizing any meeting of dealers or retailers. Gifts and tours are there but not so lucrative which could motivate the shopkeepers to sell its material. This brand only works as a substitute of unavailability of other brands.

*Ques. 6- What are the Standards Marketing Activities done by the companies?

Mason meeting Shop Wall Painting Gifts on various Occasions

BrandsNo. of

Responses

Shop PaintingMason

MeetingGifts on Occasion

Yes No Yes No Yes No

ACC 19 19 - 12 7 12 7

Shree Ultra

7 7 - 4 3 4 3

Ultra Tech

3 3 - 3 - 3 -

Ambuja 2 2 - 2 - 2 -

Jay Pee 4 4 - 2 2 2 2

Mycem 5 4 1 5 - 5 -

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Birla Gold 2 2 - - 2 - 2

Table-4

Interpretation of the question 6

During the survey this fact come out that Standard Marketing activity is one of very good ways to promote the brand. Reasons behind this are

1. In activity of shop painting- dealers shop is painted by the company with logo and brand which acts as a first impression on the customer by the brand.

2. When customer comes to the shop seeing the shop he automatically assumes that what brand of cement he could get from this shop.

3. Regular painting of shop also pleases the shopkeeper which gives little satisfaction.

4. Mason meeting is organized by the company in local areas of the city where only masons who keep in touch with the shop come. This acts as a very good mouth to mouth advertisement for the company because here the masons promote the company when they go to customers for construction work.

5. Gifts on occasion also attract the dealers and retailers both. It keeps them satisfied that company is concerned about them.

Responses for ACC- During the survey dealers said that ACC organizes the mason meeting but the expenditure is done by the dealers but when other companies organize the mason meeting the expenditure is done by the company.

They also said that the intensity of meetings has also reduced. And now they are not getting the stationary also

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from the company which they should get like diaries small writing pads, pens and few other things.

*Ques. 7- Are you satisfied with the promotional activity?

BrandsNo. of

responsesSatisfied Not Satisfied

ACC 19 9 10

Shree Ultra 7 5 2

Ultra tech 3 2 1

Ambuja 2 2 -

Jay Pee 4 3 1

Mycem 5 4 1

Birla Gold 2 - 2

Table-5

Reasons for dissatisfaction from promotional activities

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ACC- According to dissatisfied dealers of it company is not doing well in promotional activity. There are no TV ads no newspaper ads and any such kind of activity. The dealers are also concerned about this because near about every brand is promoting itself on print and electronic media. ACC has also reduced the intensity of dealer meetings and functions. Only Shop painting is not going to increase the sales of the company and the rates of the company are also very high which distracts the customer to other brands. In this type of situation company need increase the intensity of promotional activity.

Ques. 8- What is the average monthly sale of each company in M.T.?

As mentioned earlier one dealer deals in more than one brand if he is not ACC Privilege. In response of this question the answer which I received was that dealers were unable to tell the quantity of individual brand so they told the monthly sale of their shop. But in case of ACC of ACC I was able to get the monthly sale of it from each dealer.

Quantity sold in MT/month

Percentage Base total sale

ACC 6550 48.5%

Other Brands 6950 51.5%

Total13500

Table-6

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Figure-3

*Ques. 9- The Sub Dealers Demand the cement Brand of

Which Company the most? Please give the reason.

For this question we get total 43 opinions from 39 dealers.

Name of

Brand

Opinions in

favour

ACC 17

Mycem 7

Shree Ultra 6

Ultra Tech 3

Jay Pee 3

Ambuja 1

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Birla Gold 1

Table-7

According to 5 dealers retailers prefer the brand which is

cheaper for them so that they could get high margins.

Reason for Retailers Demand of Particular Brand:-

ACC-

1. It is demanded due to public demands specifically ACC

and if ACC is not available they go to other shops.

2. Retailers take it due to demand of high quality cement by

customers. They know that if a customer asks for the best

cement he has only option that is ACC.

3. As ACC has its own specific image in the eyes of public the

retailer who keep it is supposed to be a high standard

shopkeeper and also trustworthy.

4. Due to Privilege policy also sub-dealers demand for it.

Mycem-

1. Mycem is demanded by the retailers only due to high

margins which they get from the sale of this brand.

2. A special segment of public who look for cheaper cement

demand for Mycem.

3. Its easily availability is also a reason for demand.

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4. In few rural areas it has made market where it is in

demand. In these areas people prefer cost rather than

quality.

Shree Ultra-

1. Due to its tag line JUNG RODHAK it is gaining popularity in

public which is the reason for its demand. Often people

ask for JUNG RODHAK cement.

2. It is also cost efficient for middle class category due to

which its demand is increasing.

3. Its lucrative gifts and schemes are also attracting retailers.

4. Cash discounts motivate dealers to promote it.

Ultra Tech and jay Pee-

1. These two brands are near about same in demand. As

retailers keep many brands so they keep these also

because public is aware about these brands in market.

2. Retailers keep these two brands as to maintain availability

of good stock in their shop. Because the brands which are

demanded most face the crisis of shortage most and

retailer cannot keep his shop empty.

3. In few areas Ultra Tech has made good market for it Ex. -

Gajraula, and its promotional activities are creating its

market gradually.

4. Jay Pee is demanded by people still due to its old brand

image. Its ads and promotion through print media create

demand for it in public.

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Ambuja and Birla Gold-

1. These two brands have same number of response but

have different condition in market.

2. Ambuja is in demand but due to lack of good distribution

all retailers do not get its material. Whereas Birla Gold

acts as substitute in unavailability of demanded brand.

Ques. 10- What is your perception about ACC?

For this question generally two types of views came from the dealers- positive and negative, both are interpreted below:

Positive Perceptions –

1. It is a very good company with good image in the eyes of the people.

2. It is very popular among the public for its good quality cement.

3. People specifically demand for it.4. It is known for its good business values.5. A very old brand and has captured a major share of the

market.6. Many dealers want to be registered dealers of ACC. 7. Known for its fair dealing. 8. Even other people of other brands also appreciate its

image. 9. Many dealers of other brand accept that in their area also

ACC is in great demand.Negative Perceptions

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1. It has very high rates.2. Margins for the dealer and retailers are very low.3. There is always shortage of material.4. In the peek season dealers face shortage of material and

in dull season they are asked to sell material.5. Few of the dealers do unfair practices due to which other

face problems.6. No definite price system.7. No one gives any information about the schemes and

discounts.8. Privilege dealership policy creates problem. 9. Few dealers withdrew their dealership due to regular

shortage of material.

Analysis of the Questionnaire for the

Sub- Dealers

Out of 150 population sample there are 111 retailers and sub-dealers. So the analysis of this questionnaire is based on their opinion. Opinion based questions will be indicated by (*).

Ques. 2- Which company’s cement do you prefer and why?

Brand No. of

Retailers preferred by

Reason % Base

111

ACC 22

Public Demand. Privilege Retailer. Demand for good quality cement.

19.8%

Ultra Tech 21 Good quality Demand in the area. 18.9%

Mycem 16 Due to high margins Public demand for cheap rate cement.

14.4%

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Shree Ultra 10

Good company Has public demand in the area.

Gives good margins.

9%

Jay Pee 6 Gives sufficient margins. Easily available. Gives discounts.

5.4%

Ambuja 2 Selling from long time. Quality is good people ask for it.

1.8%

J.K.Lakshami 1 Deals only in J.K. Lakshami .9%

Table-8

But 33 retailers gave preference to the brand which they could get at cheaper rate so that their margins will be high. This constitutes the 29.8% of the population.

Figure-4

Interpretation of the Question 2

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This data tells that maximum number of retailers prefer to sell the cement which could make them earn good profit. After that retailers prefer the public demand which is for ACC and then rest of others are given priorities. Ultra Tech and Shree Ultra are also gaining attraction of the retailers and Mycem has maintained its market due to high margins.

Ques. 3- On sales of material of a particular company do you get any incentives or not? If you get the incentives what are those incentives?

Interpretation of Question 3:-

In response of this question major part of the opinion says that they do not get any incentive apart from the margins.

But those who said that they get incentives and schemes apart from margins they told few of the incentive schemes of the companies which are as follows:-

Mycem- Margins- 8-15 Rs per bag

Gifts, tours and many schemes related to target base selling. Many cash base discounts as 2 Rs per bag after sale of 400 bags and 3 Rs per bag after sale of 600 bags and more as the sale increases.

Jay Pee- 6-8 Rs margins, meetings and functions.

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Target based schemes as 2 Rs per bag after 300 bags, 3 Rs per bag after completing target.

Tour packages based on sale quantity as on sale of 5000 bags within given time India tour and on 12000 bags foreign tour.

Ultra Tech- 4-7 Rs margins.

Meetings and functions regularly held.

Discounts, schemes and gifts are there. Tour packages are also there as there are various tour on sale of 200MT and 500 MT.

4 Rs per bag after sale of 500 bags. There are gold and silver coins as gifts.

Shree Ultra- 6-10 Rs per bag margins.

Gifts, schemes and discounts are there. As after completing the target it provides 2 Rs per bag. Shree Ultra is providing a series of gifts on target as LCD TV, CD player, Music System and washing machine.

It is also going to provide few tour packages based on target.

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*Ques. 4- Which companies cement people prefers to buy? Why?

For this question total numbers of opinions were 134

No. of OpinionsPercentage base 134

ACC 39 29.10%

Ultra Tech 25 18.6%

Mycem 14 10.4%

Shree Ultra 11 8.2%

Others 7 5.4%

Table-9

11 said people demand for cheaper cement it is 8.2 % of all opinions.

16 said people take that cement which is available in shop it is 11.9% of all opinions.

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11 said it depends on shop keeper what it sells people do not prefer this constitute 8.2% of all opinions.

Figure-5

Interpretation of the Question 4

Opinions tells that here also ACC has the biggest share after that Ultra Tech is preferred by the people. But in this case we found few other types of opinions as people take that brand which is available. It means that companies should pay attention to the availability of their material in the shop of the retailer and the next opinion is that it depends on the retailer what people buy. This indicates that the retailer plays a important role in the promotion of the brands.

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Ques. 5- What are the Standard Marketing Activities done by the companies?

According to the opinions of retailers, company wise position of Standard Marketing activities is interpreted:

Ultra Tech- According to most of the opinions ultra Tech is doing all the Standard Marketing activities. As it does the shop wall painting timely in near about all the areas and no negative comment was given by any retailer about it. In the same manner it is also organizing the mason meetings in those areas where its retailers are there. Its intensity of the activities is also good.

Shree Ultra- Opinions say that Shree Ultra is very active in Shop wall painting in fact it is doing it in those areas also where it has no market. Retailers dealing in Shree ultra said that it is organizing mason meetings but in few areas only but the regularity of the meetings is very good.

ACC- Response for the Shop wall painting was very good from the sub-dealers but responses about mason meeting were mix. Near about half of the retailers and sub-dealers said that it organizes mason meeting and half said that it does not organizes any mason meeting. Few also said that now the company has also stopped distributing caps, stationary and small gifts like key rings etc to the sub-dealers and masons.

Findings of this question say that near about all the companies does the shop wall painting but when it comes to mason meeting only little show the interest to organize it.

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Ques. 6- What is the average monthly sale of each company? (In bags).

This question is not able to achieve its goal because none of the retailer was able to tell the separate quantity of each brand he sells. They told the overall quantity sold from their shop.

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Chapter8Conclusion and Limitations

Conclusion

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Hence from this it is clear that ACC Ltd has created a very

good brand image and captured the maximum share of the

market in the area. It also tells that how the policies and

strategies of the company for the promotion of the brand has

fulfilled its motive. Although the competition in the market is

intense and other brands are regularly applying new strategies

to capture the market share and in few areas they have got

success also but still ACC is leading.

Promotional activity is the one of the major determinants

in the industry which is sales and target based and it is very

true in the cement industry. To understand the new trend and

mentality of customer and to change the strategies according

to it will only make the company lead always. The competitors

always try to take an edge over the leading brand and for that

they apply various tricks but it is the job of employees to tackle

with these types of tricks and plans.

As we know that change is the nature of market and entry

of new players cannot be stopped but one can keep itself well

prepared for the new challenges of the future. In the present

scenario to retain the leading position ACC will have to keep

itself update with new strategies and plans for the future.

Limitations

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During the survey and preparation of this report lots of

problems were faced in the form of limitations. These

limitations are as follows:

1. First limitation in the research is its time duration

because no research work could be completed within

the time span of one month.

2. Next thing was the area of survey which was distributed

in the form of 8 districts. Such a large area was difficult

to cover within one month time limit.

3. Cost effectiveness is also one of the major problems in

this research to travel in each district daily and visit

several shops distributed all over the districts took lots

of bus and rickshaw fair. And at the same time no

stipend and travelling allowance is being paid.

4. Next problem which I faced was the weekly off of the

markets. It caused lots of trouble because every district

has different day for the weekly off day and I was not

known to the fact and the week off. Which caused me

two day visit of the city where one day was only

required.

5. For the cement shops the time from 9.00 am to

12.00pm is important for work between which they do

not entertain any visitor if he is not a customer. And in

the evening after 5.00 pm they use to deny talking. This

gave me only 5 to 6 hour only in a day for survey.

6. The respondents of the survey often deny to give the

answer of the questions as it discloses their facts about

business.

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7. There were many biased answers were also given in

favor of the brands in which they are dealing.

8. There is lack of consistency in the number of dealers

and retailers visited in different districts which has

affected the results of the research.

9. In few areas few brands were highly in demand due to

which there were more numbers of dealers and retailers

were present in that area which has affected the

uniformity of the sample.

10. Respondents were not able to give the exact quantity

of sale of each brand of cement from their shop due to

which sample of quantity of sale of brands was not

gathered.

Questionnaire

Name ………………………………………………………………………

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Firms name………………………………………. ………………………..

Address and mob no (if applicable) ………………………………………………………..

………………………………………………………………………………

1. You are a

Wholesaler Retailer Both

2. Which cements brands you deal with?

………………………………………………………………………………

……………………………………………………………………………….

Tonnage of each brand

…………………. ………………… …………………. ………………… …………………. ……………….. ………………….. ……………….. …………………. ……………….

3. How many percentage of your sale in cash discount given by the different

Cement company.

………………………………………………………………………………..

………………………………………………………………………………..

4. Discount / yearly

Cash discount……………………………………………………………...

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Quantity discount………………………………………………………...

Annual discount…………………………………………………………

Exclusive discount……………………………………………………

5. Additional sales discount.

……………………………………………………………………………..

………………………………………………………………………………

6.Retailers/wholesaler scheme.

………………………………………………………………………………..

7. marketing scheme.

…………………………………………………………………………….

…………………………………………………………………………….

8. Customer scheme.

…………………………………………………………………………….

…………………………………………………………………………….

9. Price equalization + rake discount.

………………………………………………………………………….

………………………………………………………………………….

………………………………………………………………………….

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10. Margin expected by the retailer from the cement company.(1) ……………………………………………………………….(2) ……………………………………………………………….(3) ……………………………………………………………….(4) …………………………………………………………….....

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