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Project Study Report
On
Training Undertaken at
J.K.CEMENT LTD.
“Manufacturing Process and Financial Activities”
Submitted in partial fulfillment for the
Award of degree of
Master of Business Administration
2
Submitted By:- Submitted To:-
xxxxxxxxxxx
Dr.Sonal jain
MBA 3rd sem (HOD)
Deepshikha college of technical education, Jaipur
(2009-2011)
PREFACE
As per the requirement of MBA course J K Cement WORKS has been kind enough to permit me to complete my project on “Study of J K Cement’s Ltd. – Cement Manufacturing process and financial activities”.
This report prepared during the practical training. Which is student’s first and greatest treasure as it is full of experience, observation and knowledge.
The summer training was very interesting and gainful as it is close to real what have been studied is all the years through was seen implemented in a modified and practical form.
The only fault was that the time available was short and there was much to learn, yet the things learned shall never be oblivion and are of great aid in the near future.
I sincerely believe that the research can be useful to the organization and others as well as
J.K. Cement Works
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ACKNOWLEDGEMENT
I express my sincere to my project guide, Mr. R.P..Singh, Designation General Manager Dept.- HRD & RTC, for guiding me right from the inception till the successful completion of the project .I sincerely acknowledge him for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he provided to me all stages of this project.
I would also like to supporting staff Mr. N.K.Vaishnav officer –RTC, HRD Department, for their help and cooperation throughout our project.
(MExxxxxxxxxx)
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Executive Summary
The word cement may be defined as a substance, which can join two or more pieces
of some other substance together to form a unit mass . cement is a fine power which when
mixed with water and allowed to set and harder can join different components together give a
strong structure mechanically .thus cement as founding material for bricks or for founding solid
particles of different sizes to form a monolith.
Cement is an essential commodity ,which is available in two types ,the opc and the
ppc .India is the second largest producer of cement .
JK cement is having its monopoly in both the market share as well as customer
confidence .this is because of its superior quality product and excellent customer services .The
company runs round the clock and its policy of maintain is helpful in providing better quality
clinker .
The company is maintaining its TPM (total productivity maintenance ) policy.
TPM of each activity in the industry with special care for profitability with the investment of the
employees.
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The aim of this study is to identify the “Manufacturing Process And Financial Activities”
for JK CEMENT and to understand the expectation and opinion of retailers and dealer
regarding sales of JK cement.
At last project will be beneficial for both company as well as reader who want to gain
inside knowledge about the Manufacturing Process And Financial Activities of JK cement in
cement market.
The questionnaire and direct interview were used as the sources of data.The current
problem that the company is facing is also identified with probable suggestions are included in
the report.
CONTENT
1. Introduction to the Industry 8
2. Introduction to the Organization 11
3. Research Methodology 69 3.1 Title of the Study 70
3.2 Duration of the Project 70
3.3 Objective of Study 70
3.4 Type of Research 71
3.5 Sample Size and method of selecting sample 73
3.6 Scope of Study 74
3.7 Limitation of Study 75
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4. Facts and Findings 78
5. Analysis and Interpretation 81
6. SWOT 89
7. Recommendation and Suggestions 91
8. Conclusion 96
9. Appendix 97
10. Bibliography 98
DECLARATION
Mexxxxxxxx D/O Mr.xxxxxxxxxxx declares that the project report titled
“Manufacturing Process and Financial Activities” is based on my project study. This
project report is my original work and this has not been used for any purpose anywhere.
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xxxxxxxxxxxxx
MBA part III semester
8
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1. INTRODUCTION TO THE INDUSTRY
CEMENT INDUSTRY IN NORTHERN INDIA:
1. Leading position in attractive Northern India grey cement market:
Based on CMA data, Northern Indian cement manufactures have consistently operated at the highest levels of capacity utilization among India’s five regions. We believe this reflects the strong demand in Northern India for cement products relative to supply. Further, based on capacity expansions announced by cement manufacturers, we expect cement plants in Northern India to continue to operate at high utilization levels and anticipate continued strong demand for our grey cement products in the near and medium-term. We believe that we are well positioned to take advantage of this demand, as the fourth largest grey cement manufacturer in Northern India, and the largest grey cement manufacturer in the state of Rajasthan.
2. Second largest white cement producer in India:
White cement accounted for 16.6% of our total cement revenue and 35.2% of adjusted EBITDA from our cement operations in fiscal 2008, and 15.5% of revenues and 38.11% of our adjusted EBITDA from our cement operations in the six months ended September 31, 2009. Unlike grey cement, the white cement industry in India is highly concentrated with the two largest players accounting for the substantial majority of India’s production capacity. Consequently, prices of white cement have been relatively less volatile and sales of white cement have generated more stable cash flows for us even during industry downturns in grey cement. We also believe our position as the second largest producer of white cement in India, together with our nationwide delivery network, significantly enhances the overall brand image of JK Cement.
3. Proximity and access to large reserves of high quality limestone :
Operations, which we believe are sufficient to sustain our operations well into the future. Based on independent geological surveys of different mines during 1996 to 2001, we believe that our limestone reserves are sufficient to support our current and planned capacity for approximately 40 years for both grey and white cement. (Put in risk - assuming we are able to renew our existing leases upon their expiry) As one of the first cement producers in Northern India, we were able to choose our limestone reserves in an area with high quality limestone resources. In addition to allowing us to produce white cement, which requires high quality limestone,
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it also provides us with a cost advantage, as we are not required to purchase sweeteners to improve the quality of limestone. Further, our manufacturing plants are in close proximity to our limestone reserves, resulting in lower transportation costs. Finally, our mines that supply our white cement plant at Gotan also have a supply of white clay, an important additive necessary for white cement production.
4. Quality of products and strong brand name:
We believe that brand name and reputation are important to retail purchasers of cement
in India. We have built a strong reputation among cement purchasers by consistently providing
high quality products. We believe that there is strong customer awareness of our brands, JK
Cement (“Sarvashaktimaan”), for grey cement in our principal market in Northern India, and JK
White (“Camel”), for white cement across India. Further, we believe that our brand name and
our reputation for consistently supplying high quality products provide us with a competitive
advantage in ensuring that cement dealers carry our products.
5. Extensive marketing and distribution network :
We have a wide distribution network for grey cement in Northern India. We also have a strong all-India distribution network for white cement. Our distribution network for grey cement products consists of 44 feeder depots serviced by seven regional sales offices in Delhi, Haryana, Uttar Pradesh, Punjab, Rajasthan,
Madhya Pradesh and Gujarat. Our white cement network comprises 20 feeder depots serviced by 13 regional sales offices in Delhi, Chandigarh, Uttar Pradesh, West Bengal, Andhra Pradesh, Tamil Nadu, Karnataka, Kerala, Maharashtra, Gujarat, Madhya Pradesh and Rajasthan
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2. INTRODUCTION TO THE ORGANISATION
2.1. HISTORY BEHIND J K CEMENT
The initial "J.K." stands for a father- son team, namely: Juggilal Kamlapath
Singhania
J .K. organization started in the year 1884 at Calcutta. J .K. started their business
as a Financier, Investor, Trading Supplier of cotton belts and manufacturer of small
machinery parts like ‘V' belts, etc. They established few small cotton textile
industries also.
In the year 1914 they shifted their business from Calcutta to Kanpur where they
established many big industries like J.K. cotton Mills, Straw product Co, Lohia
Mach, J.K. Pulp and Raymond’s Woolen, etc.
In the year 1934 J.K. organization started one more division, as J.K. Synthetics
Ltd. They established various big plants of Nylon, Acrylic fiber, etc. at Kota and
Tyre Cord, Chemical and Pesticides at Jhalawar.
In the year 1974 under the same division one more unit was started for
manufacturing of Grey Cement at Nimbahera.
The Present cement factory was commissioned in the year 1974. The plant started
its production from 27th Dec 1974.
13
Ist plant / kiln was commissioned in 1974 and the capacity of this plant was 900
tonne per day and 3 lakh tonne per year. After modification in Preheater, its
present capacity is 1200 TPD.
Expansion of this plant took place in the year 1979, when 2nd kiln was
commissioned with a capacity of 1200 tonne per day and 7 lakh tonne per year.
After modification in Preheater its present capacity is 1800 TPD.
Again in the third phase, a kiln was erected in the year 1982 and production of this
kiln was 1350 tonne per day.
In the year 1988 a new technology was introduced in this 3rd Kiln that consisted of
precalcination process, which raised the capacity of this plant to 3400 tonne per
day, which was earlier 1350 tonne per day. In Aug.-2003 after again some
modification in Preheater and Folex cooler its capacity is increased to 5000 TPD.
Besides, J.K. cement plant is having its own diesel generator sets, producing
power to meet the power energy requirements.
Main raw material for cement is LIMESTONE, for limestone we have our own open
cast mines adjoining to the plant. Besides we have developed few more mines at
Maliakhera, Karoonda and Tilakhera for producing 10,000 tonnes limestone per
day as needed.
J .K. Cement erected one more plant from Jan. 2001 with the capacity of 1400
tonne per day at village Mangrol. In Nov.-2003 after modification in Preheater and
installation of Mechanical elevator its capacity increased to 2200 TPD.
Due to power shortage as imposed by Ajmer electricity supply board J.K.
established its own Thermal Power Plant at village Bamania, near Shambhupura,
which is generating 15 M.W. power every day, which is consumed by J.K. Cement
Plant.
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J K Cement also has a plant of 400TPD installed capacity of White Cement at
Gotan, Nagpur (Raj).
J.K. Cement has started the following projects:
1. Cement Project at Karnataka of over 5500 TPD and Thermal Power Plant of capacity 30 MW.
2. Thermal Power Plant at Nimbahera of 22 MW.
3. Waste Heat Recovery Plant at Nimbahera of 15 MW capacity.
4. Bhumi Poojan of Dr Gaur Hari Singhania Technical University at Bhatewar, Udaipur.
5. J.K. cement is one of the most productive, cost efficient cement producing plant in the country, a company, believing in corporate responsibility to society, integrity and fairness. The company’s cement is sold under the J.K. Sarve Shaktiman brand name, enjoys good brand image and a price premium.
The following types of cements are produced by J K Cement Works.
(a) Ordinary Portland Cement (OPC)
(b) Portland Pozzolana Cement (PPC)
(c) Super Silicate Cement (SSC)
(d) Masonry Cement (MC)
J. K. Cement manufactures and markets cement and clinker for both domestic as well as exports markets.
2.2. PRESENT CAPACITY AND PERFORMANCE
2.2.1 CLINKER PRODUCTION
Ist Plant / Kiln 1200 Tonne Per Day (TPD)
IInd Plant / Kiln 1800 TPD
IIIrd Plant / Kiln 5000 TPD
IVth Plant at Mangrol 2200 TPD
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Total Capacity 10200 TPD
2.2.2 PRODUCTION ANALYSIS TABLE: IN TONS
Year Clinker Cement
2005-06 3170268 3511022
2006-07 2907196 3638786
2007-08 2917045 3690726
2008-09 3024091 3646220
2.2.3. FINANCIAL ANALYSIS: IN Million
1.Net sales increased 22.04% from Rs.1,49,683.56 lacs in 2008-09 to Rs. 1,82,678.47 lacs in 2009-10.
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YearTurnover
PBT
2005-06 11087 522
2006-07 15297 2720
2007-08 18128 3466
2008-09 18765 2340
2009-10 222 22481 22
22481
3112
2.PBT increased 33.04% from Rs.23,396.06 lacs in 2008-09 to Rs.31,125.86 Lacs in 2009-10.
2.3 MANAGEMENT SET- UP
2.3.1. Corporate Level- Kanpur
Chairman - Dr Gaur Hari Singhania
Managing Director - Shri Y P Singhania
Group Executive President - Shri R G Bagla
2.3.2. Unit Head Level- Nimbahera
President - Shri D. Ravisankar
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J K Organization
J K Cement Ltd.
J K White Cement Works
Gotan, Nagaur
J K Cement Works (Grey Cement)
1. J K Cement Works, Nimbahera
2. J K Cement Works, Mangrol
3. J K Thermal Power Plant, Bamania
4. Projects-
J K Thermal Power Project,
Nimbahera
J K Cement Project, Karnataka
2.4. BOARD OF DIRECTORS
CHAIRMAN
Dr. GAUR HARI SINGHANIA
MANAGING DIRECTOR & CEO
Mr. YADUPATI SINGHANIA
LIST OF DIRECTORS
Mr. J.P. BAJPAI
Mr. K.N. KHANDELWAL DIRECTOR
Mr. RAJ KUMAR LOHIA DIRECTOR
Mr. ASHOK SHARMA
Mr.JAYANT NARAYAN GODBOLE
Mr. ACHINTYA KARATI
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GROUP EXECUTIVE PRESIDENT
Mr. R.G. BAGLA
(CORPORATE AFFAIRS) AND CHIEF FINANCIAL
OFFICER
Mr. A.K. SARAGOI PRESIDENT
(TECHNICAL AND MANAGEMENT SERVICES)
Mr. M.P. RAWAL PRESIDENT
PRESIDENT WORKS (GREY CEMENT)
Mr. D. RAVI SHANKAR
WORKS (WHITE CEMENT)
Mr. B.K. ARORA PRESIDENT
SENIOR VICE PRESIDENT MARKETING (GREY CEMENT)
Mr. R.C. SHUKLA
SENIOR VICE PRESIDENT MARKETING (WHITE CEMENT)
Mr. V.P.SINGH
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COMPANY SECRETARY
Mr.SHAMBHU SINGH
2.5. J K Marketing Organization & RTC – North
2.5.1. J K MARKETING ORGANISATION
The head off ice of Marketing Department of J K Cement Ltd. is at Delhi,
which is headed by Sr. V P (Marketing-Grey Cement) and Sr. V P (Marketing
White Cement). The White Cement is sold all over India and the Grey Cement is
sold in the States of Rajasthan, M.P., U.P., Haryana, Punjab, Gujarat and Delhi.
With the commissioning of J.K Cement Project, Karnataka Southern region wil l
also the Covered for Grey Cement.
Marketing team
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Grey Cement 79 Members
White Cement101 Members
2.6. Regional training Centre – North
The Regional training Centre – North is a premier training centre of
North India promoted with assistance from World Bank, DANIDA and Govt. of
India as a unique HRD project in Cement Industry is also attached with J K
Cement Works as Lead Plant. It is equipped with modern training aids and
caters to the skil l enhancement and competency developmental needs of more
than 20 cement and other plants. It has trained over 8000 technical and
managerial personnel during the last 14 years.
The centre has conducted many tailor-made in-house programs for
cement and other industries in India and abroad including for Oman Cement,
Oman and Star Cement, Dubai.
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Works closely with customers to
retailers and increase awareness
and usage of with cement
producers
Co-ordinate with dealer network
and direct consumer.
Efforts to increase production of
blended cement to meet growth in
demand
RTC has specialized packages / modules in Mining, Process,
Maintenance disciplines l ike Operation & Maintenance of HEMM / Gear Boxes /
Pumps / Compressors / Electrical & Electronics Equipments / Energy
Conservation / Environment Management and Machinery Alignment, etc.
designed and developed by renowned International / National agencies l ike FLS
Denmark, NCCBM, TATA Interactive Systems, VEC, NITTR, ect. More than 100
senior l ine mangers form ten plants have been trained at Denmark, NITTR,
Bhopal.
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2.7. SOCIAL RESPONSIBILITY
Educational Services :-
Construction of rooms in Govt. College at Nimbahera.
Running JK Institute of Technology, ITI in five trades affiliated to NCVT.
Running 10+2 CBSE affiliated School.
Running Regional Training Centre for Cement technocrat's aided by WB & DANIDA.
Various constructions in nearby Govt. Schools of Chittorgarh District.
We are involved in girls school (under construction) and committed reasonable
financial contribution for above.
Medical services
Rs. 36 lacks contribution for the construction of Govt. Hospital at Nimbahera.
Ambulance to Govt. Hospital.
Free facility of pathological laboratory for the persons of surrounding area.
Financial contribution to various NGOS for medical camps in the district.
Financial contribution for construction of dispensary & health centre in nearby
villages.
Free Homeopathic consultancy/medicines for the patients of nearby area.
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Religious services :
Radhakrishna tempie at colony premises.
Prayer hall in hanuman temple in Nimbahera.
Bheemkeshwar temple in staff colony.
Dharmashala at Bhanwarmata (tourist / religious place.)
8 room for Dharamshala at Pashupati Nath temple in Mandsaur (M.P.).
Various temples in Number of nearby villages.
Sports services
Sports infrastructure like wooden badminton court, table tennis court, billiard room,
and cricket ground, volleyball ground in colony campus.
Sponsoring all India. youth football, volleyball and badminton tournaments.
Sponsoring inter-district tournament.
Arranging summer camps for various sports.
Other social services
Construction of approach roads in and around villages of mining area.
Digging of tube wells.
Supply of tube well pumps.
Construction of water tanks.
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Supply of drinking water in tankers in nearby needy places during summer.
Regular plantation in plant, colony and nearby villages.
Direct and indirect employment to thousands of persons of surrounding area.
Financial helps to NGOS.
Financial aid to organize religious festivals by municipal board.
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CEMENT MANUFACTURING PROCESS:
There are three production lines involving five significant manufacturing stages,
namely crushing, raw meal grinding, clinkerisation, cement grinding and packing.
At crushing stage, run of limestone mines is crushed to desired size so as to
achieve optimum grinding efficiency in the Raw Mills. Crushed limestone is stacked by stacker
in a stockpile and reclaimed by means of a reclaimer. The stockpile serves as a buffer stock
storage. Partial quantity of laterite & bauxite is also added during crushing.
In Raw Mill, crushed limestone with late rite is fed through weigh feeders. The
feed quantity and ratio of feeds are controlled based on the chemical analysis results from
QCX (X-ray) / Laboratory. The raw material is ground in ball mills and the fineness (residue) is
controlled by separator damper control. The raw material is also ground in VRM where
finances is controlled
By separator's speed. The ground raw meal is blended for homogeneity and
stored in raw meal storage silo or in C.F. silo.
Clinkerisation is the heart of cement manufacturing process, where the raw meal
is fed to the preheater at controlled rate through electronic weigh feeder and / solid flow
meters. The feed enters the kiln though cyclones (for Unit I, II) and through Precalciner (for
Unit III) and the fuel is fired at the kiln outlet end (also in precalcienr for unit – III) The counter
current of hot gases against the material flow right from preheater stage to kiln outlet converts
raw mix to clinker by pyroprocessing stages like calcinations and clinkerisation. The clinker is
cooled in coolers.
Clinker is transported to clinker yard for storage. Clinker and gypsum are
thereafter ground to a specific fineness in bqll mills to produce final product i.e. cement. The
blaine (fineness) of cement is controlled by separator's speed in close circuit grinding and by
mill fan damper opening during open circuit grinding.
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CEMENT
Cement can be defined as any substance, which can join or unite two or more
pieces of some other substance together to from a unit mass. Cement, as used in construction
industries, is a fine powder which when mixed with water and allowed to set and harden can
join different components or members together to give a mechanically strong structure. Thus,
cement can be used as a bonding material for bricks or for bonding solid particles of different
sizes (rubble masonry) to form a monolith.
HISTORY OF CEMENT
The history of cement is the story of civilization from primitive caves of pre-
historic times to the skyscrapers of the modern age. It is said that the use of cement is form the
period of use of fire. Egyptians utilized gypsum plaster as cementing material as early as 3000
BC building their monuments.
However, It was in 1824 sixty-eighty years after the discovery of hydraulic
properties of lime Joseph Aspdin patented his product, which was called "Portland Cement"
The plants manufacturing Portland cement outside England were commissioned in Belgium
and Germany in 1855. The interest that is evoked in the technology of cement resulted in the
development of Rotary kilns in 1886.
Modern cement is the outcome of the combined research and development
efforts of chemists, technologists and architects. The cement technology is an offshoot of the
overall development in other industries, technology, constructional activities and knowledge
and the availability of raw materials.
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TYPES AND USES OF CEMENT
Types of Cement Application
Ordinary Portland Cement
(OPC)
General Construction
Portland Slag Cement General construction and marine works.
Portland Pozzolona Cement
(PPC)
General construction, hydraulic construction &
marine.
White Portland Cement Architectural purposes, decorative work and in
manufacturing of titles.
Oil Well Cement Connecting the steel casing to the walls of gas oil
wells at high temperature and to seal porous
formations in petroleum industry.
Low Heat Portland Cement Where low heat on hydrations is required as in mass
concrete for dams.
Super Sulphated Cement In a varity of aggressive conditions like marine works,
concrete sewers carrying industrial effluents.
High Alumina Cement Mainly as refractory cement and as structural material
giving high early strength development in cold
regions.
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RAW MATERIAL
Raw Materials :-
Limestone (calcareous) and clays (argillaceous) are the conventional raw
materials mostly used in cement industry. Sometimes sandstone (siliceous), bauxite
(aluminous) and iron ore (ferrruginious) are used, as corrective material to maintain desired
composition for potential property of clinker.
Cement manufacturing process involves –
Preparation of raw mix by crushing, grinding and blending of raw materials in definite
proportions.
Burning the raw meal at clinker temperature (14500C) in a kiln.
Grinding the resultant clinker to fine powder with certain amount of gypsum to regulate setting
of cement.
Types of Raw Material
It is known that raw meal feed for cement manufacture basically consists of two components –
Calcium carbonate
Alumino silicates
Due to depletion of cement grade limestone, it is necessary to go in, more and more, for
byproducts and waste materials of chemical, metallurgical, coal and other industries as raw
material for cement manufacture.
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TECHNOLOGICAL ASSESSMENT OF RAW MATERIAL
Raw materials are characterized by
(a) Chemical composition
(b) Mineral composition
(c) Physical composition
(d) Mechanical characteristics
Composition of Ordinary Cement :
Ordinary Portland Cement is the basic cement and it has three grades namely
33, 43 and 53 respectively. Limestone is the principal raw material for the
manufacturing of cement. Our country has enough reserve of raw material needed in
the cement industry. Cement consumption growth is highly correlated to the GDP
growth and serves as a leading indicator. More industrial activity and greater
purchasing power means more asset formation and construction and thus more
consumption of cement.
Ingredient Percentage Range
Lime 64 64-68
Silica 22 17-25
Alumina 5 3-6
Calcium Sulphate 4 3-5
Iron Oxide 3 3-4
Magnesia 2 0.1-3.0
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Sulphur 1 1-3
Alkalise 1 0.2-1.0
PROCESS
Basically there are two types of process for cement manufacturing that is –
1.Hydro Processing (Wet Process)
2.Pyro Processing (Dry Process)
We are using Pyro Process in JK Cement Works .
1. PYRO PROCESSING
In order to manufacture cement from the raw mix, it is required to heat raw meal to a
temperature of 14500C, thus carrying out SINTERING OR CLINKERISATION. The burning
process requires an oxidizing atmosphere in the kiln, as in the opposite-case a clinker of brown
colour (contrary to the normal greenish-gray) will be formed and the resulting cement will be
quicker setting and with lower strength.
1.5.2 Chemical Transformations
During heating of the raw meal to the burning temperature 14500C (clinkerization or sintering)
certain physio-chemical processes take place. These include :
Dehydration of the argillaceous minerals; decomposition of the carbonates (decarbonisation)
or expulsion of CO2 commonly known as (calcinations); reactions in solid phase and reactions
with the participation of one liquid phase and crystallizations.
These processes are influenced by chemical factors in the raw meal (such as its chemical
composition), by mineralogical factors (its mineralogical composition), by physical factors
31
(fineness or particle size in the raw meal), homogeneity and other factors. The complete of
these endothermic reactions plays a decisive role in quality of the resulting cement.
In per-heater kiln, the first five transformations shows in figure 4.1 will take place in pre-heater
tower. The decomposition of limestone and other carbonates will primarily take place in the
calciner vessel where the calcinations temperature is maintained by injection of fuel. the last
two transformations will take place in the rotary kiln.
The carbonate ca CO3 decomposes between 600 – 8000C to form CaO. Quartz and clay will
have started decomposing slightly before that to liberate free reactive Al2O3 and SiO2
The CaO being formed at this stage, now reacts with SiO2 to form C2S and later with more
CaO to form C3S Some CaO will also react with Al2O3 and Fe2O3 to form various intermediate
components such as CA, C12A7 and others, which will decompose at higher temperature at
later stage.
C2S content is been to grow steadily during the heating and reach maximum content at approx.
13000C which is a point where liquid phase appears. The major part of C2S is then transformed
to C3S in the liquid phase and the final content of C2S in the clinker is less than the content of
C3S.
32
The basic steps involved in the manufacture of cement are:
Mining
Crushing
Stacking and reclaiming
Raw material grinding
Raw meal storage & blending
Preheating and burning
Clinker cooling
Clinker storage
Clinker
Grinding
• Cement storage in silos
Packing & dispatch
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1
MINING
1.1FUNCTIONS:
Planning and executing a systematic exploration programme.
Draw scope of drilling campaign. How to carry out survey and perform drilling activities for
exploration purpose.
Establish system for computerized mine-planning in order to ensure supply of limestone with
consistent quality.
Planning and executing drilling and blasting programme in normal course at site to take
optimum output from blasting as well as achieving economy in explosive consumption.
(Approximate boulder size : 1.0 M * 1.4 M * 1.1 M)
Loading and transportation of lime stone boulders to crusher site.
Implementing statutory requirement for safety and environment
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1.2 Resources :
(a) Explosives
(B) Equipment :
Drilling machines
Excavators / Shovels
Dumprs
Dozers
Loaders
Operations
Drilling and Blasting
Loading and transportation
2 CRUSHAER, STACKER & RECLAIMER
2.1 CRUSHER
2.1.1: Purpose
Size reduction from 1.0M 9 1.4M * 1.1M boulder to 25mm size
limestone pieces.
2.1.2 Common type of Crushers :
Double Toggle Jaw Crusher (Capacity : 400 TPH) : Used as
primary crusher.
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Swing hammer Crusher (Capacity : 200 TPH) used as secondary
crusher.
Compound Impactor (Capacity : 800 TPH) combined unit of primary
and secondary crusher.
2.2 STACKER & RECLAIMER
Purpose :
Homogenization of crushed limestone.
2.2.1 Stacker :
Type of Pile : Longitudinal.
Details of Piles : 20000 – 30000 tonnes per pile. Height of pile upto 11.00 meters.
Rated capacity : 1000 tonnes per hour. It varies from plant to plant depending upon the
production requirement.
The stacker moves on longitudinal rails.
2.2.2 Reclaimer
Type : Bridge Scrapper Type.
Rated Capacity : 600 tonnes per hour it will vary from plant to plant depending on the
production requirement (in TPD)
Working Principle :
Cuts Stack Pile in slice from parallel to face of pile. Shifting material (limestone) to belt
with the help of scrapper.
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3 GRINDING
3. INTRODUCTION -
3.1 Materials used for grinding
Limestone and additives (Raw Mix)
Coal and other fuels
Clinker
3.2 Feed size of incoming materials
Limestone
25mm Size for Ball Mills
35 mm Size VRM (Segregated)
37
(Secondary Crusher is used to feed Ball Mills)
Coal – 25 mm size
Clinker – 25 to 35 mm size
.3.3 Fineness of output materials
Raw Mix : 15 – 17% Residue on 90 #
1.8 – 2.2% Residue on 200 #
Coal Powder : 15 -17 % Residue on 90 #
18-22% Residue on 90 #
(For use in Pre-Calciner, there is separate arrangement to grind coal)
Cement : 33 Grade – 2600 to 2800 Blaine
3.4 Grinding Systems
Raw Mix :
Ball Mill
Vertical Roller Mill
Combination of Roller Press and Ball Mill
(Generally open circuit is used in wet process and closed circuit is
used in dry process. In closed circuit systems, fixed and dynamic
separators are used.)
Coal and other fuels :
Ball Mill
38
Vertical Roller Mill
(Closed circuit used)
Clinker Grinding :
Ball Mill
Combination of Roller Press and Ball Mill
(Oper circuit and closed circuit used. In closed circuit systems. fixed
and dynamic separators are used.
3.5 Materials used for grinding
Limestone and additives (Raw Mix)
Coal and other fuels
Clink
3.6Grinding of Cement :
In a modern cement plant, the total power consumption is about 100 Kwh/tonne
whereas cement grinding process accounts about 40% The quality of final cement
product depends on operational mode and parameters of cement grinding plant.
Cement has to be ground find enough to meet the requirements for strength
properties specified in current standards. As it takes quite long time to determine
39
especially the late strength, the hour-to-hour and day-to-day control of cement grinding
has to be based on cement fineness.
Strength development of concrete is the result of hydration of the particles.
Smaller the particles, larger the specific surface and faster the hydration. Particles
coarser than 30-50 microns hydrate very slowly and will only affect late strengths. On
the other hand, superfine particle with 2-3 micron size may hydrate before the concrete
has been cast and will have limited influence on strength development.
kiln system
4.1 Purpose :
To transform Raw Mix into CLINKER through PYRO-PROCRESSING.
4.2 Sections of a Typical Kiln System :
KILN feed system.
Pre-heater (Four stage to Six stage)
Pre-Calciner (ILC, SLC)
Kiln
Cooler (including Clinker Hammer)
40
Planetary Cooler
Grate Cooler
Type of Cement
Grey Cement
White Cement
4.3 Processes :
Wet Process
Semi-dry Process
Dry Process
5 PACKING PLANT
5.1 Purpose :
To pack cement in appropriate packages suitable for consumption at site.
5.2 Common packs available :
Grey Cement :
50 Kg Bags
“Bulk handling of cement has started at selected places e.g. bulk-handling project
near Mumbai by ACC.”
White Cement :
41
50 Kg and small size packs as per market demand.
.5.3 Packers :
Mechanical Packers
Electronic Packers
6 QUALITY CHARACTERISTICS OF CEMENT
6.1 INTRODUCTION :
The survival and wellbeing of the cement plants / companies in the market depends
upon the quality of product and its cost. Quality and cost together define the value of the
product (i.e. cement in this case). The concept of quality has undergone a sea change from
mere quality control of the product to total quality management (T.Q.M.) with emphasis on
quality defined as "totality of features and characteristics of product / services that bears on its
ability to satisfy the stated and implied needs".
42
The quality of the product dependes on varity of factors such as techonology, quality of
raw materials and fuels, operations and quality control procedures to produced consistente
product.
The Broad quality parameters of cement relate of chemical and physical properties as
per IS CODE are as mentioned below.
6.2 CHEMICAL PROPERTIES :
Loss on ignition (LOI)
Insoluble residue (IR)
Sulphur trioxide (SO3)
Magnesium oxide (Mgo)
Total chloride (C1)
Lime saturation factor (LSF)
Alumina modulus (AM)
6.3 PHYSICAL PROPERTIES
Fineness
Consistency
Setting time – initial and final
Soundness
Compressive strengths (3 days, 7 days and 28 days)
Heat of hydration
43
Drying shrinkage (for PPC)
PRODUCTS
We produce grey cement and white cement. Grey cement produced by us consist of
Ordinary Portland Cement ("OPC") and Portland Pozzolana Cement ("PPC"). OPC has three
principal grades that are differentiated by their compressive strength, and consist of 53- grade,
43-grade and 33-grade OPC.
All our products comply with the quality standards specified by the Bureau of Indian
Standards ("BIS"). Our cement products are marketed under the brand names J.K. Cement
and Sarvashaktiman for OPC products, J.K. Super for PPC products and J.K. White and
Camel for with cement products, which we believe are well known brands in their respective
markets.
Types of Cement
1. Grey Cement
2. White Cement
3. J.K. Wall Putty
: SPECIFICATION GREY CEMENT
RAW MATERIAL LIMESTONE & GYPSUM
TRADE NAME SARVSHAKTIMAAN
TRADE MARK VIJAYSTAMBH
PRODUCTS GRADES 43, 53 AND PPC
PACKAGING CAPACITIES 50 KG PER BAG
44
MRP Rs. 225-250 PER BAG
GREY CEMENT
Grey cement produced by us consists of OPC and PPC. There are also other cements
in the market that we do not produce, such as Portland slag cement, oil well cement, sulphate
resistant cement, rapid gardening cement, low alkali cement, low heat cement and super finish
cement. OPC has three grades that we produce, that ate differentiated by their compressive
strengths, expressed in mega pascals ("MPa"), as specified by the BIS. These grades are 53-
grade OPC, 43-grade OPC and 33-grade OPC, with 53-grade OPC having the highest
compressive strength.
The customer selects the grade of OPC based on the intended application. Our most
poplar cement, by sales volume, is 43-grade cement, with 53-grade cement being used in
applications which require high strength characteristics.
ORDINARY PORTLAND CEMENT :
OPC is produced by inter-grinding cement clinker prepared in a rotary cement kiln with
gypsum. Each metric ton of OPC requires approximately 0.95 metric tons of clinker and
approximately 0.05 metric tons of gypsum. The range of applications, the physical and
chemical requirements specified by BIS and strength of the three grades of OPC are
discussed below.
45
53-grade OPC (IS:12269-1987) : 53-grade OPC is a high strength cement. According to
the BIS requirements, 53-grade OPC must have a 28-day compressive strength of no less
than 53 MPa. For certain specialized products, such as pre-stressed concrete and certain pre-
cast concrete items requiring high strength, 53-grade OPC is considered useful as it can
produce high-grade concrete at lower cement content levels.
We produce 53-grade OPC by exposing the clinker to the grinding process for longer
period of time, which results in a higher density and stronger cement. As the grinding process
requires a significant amount of power, finer grinding for the 53-grade OPC requires more
power and is therefore priced higher compared to lower grades of OPC. 53-grade OPC can be
used for the following applications :
1. Pre-cast concrete items such as paving blocks, tiles and building blocks.
2. Pre-stressed concrete components and
3. Runway, concrete roads and bridges.
43-grade OPC (IS-8112:1989) : According to the BIS requirements, 43-grade OPC must
have a 28-day compressive strength of no less than 43 MPa. 43-grade OPC is commonly used
in the following applications :
1-cast items such as blocks,
2-tiles and pipes.
3. Asbestos products such as sheets and pipes and
4. Non-structural works such as plastering and flooring.
33-grade OPC (IS-269:199) : 33-grade OPC has been commonly used for general civil
construction work under Norman environmental conditions. According to the BIS requirements,
33-grade OPC must have a 28-day compressive strength of no less than 33 MPa.
46
The increased availability of higher grades of OPC has decreased the use of 33-grade
OPC in India and now 43-grade OPC is normally used for general construction work rather
than 33-grade OPC. 33-grade OPC is now more commonly used for mass concreting and plain
cement concreting and is produced on a made to order basis. It can also be used for plastering
and single storey individual houses.
PORTLAND POZZOLANA CEMENT :
We also manufacture PPC (IS:1489 (Part-1) – 1991) under the brand name J.K. Super.
PPC is also known as blended cement or silicate cement, and this blended cement has
become increasingly popular in the market in recent years. Each ton of PPC requires
approximately 0.75 tons of clinker, 0.05 tons of gypsum and 0.20 tons of fly ash, a pozzolanic
material that is a by-product of thermal power plants. In the manufacture of PPC, a portion of
the clinker is replaced with fly ash.
This enables the cement manufacturer to produce a higher quantity of cement per ton of
clinker. As a result, the cement manufacturer can increase its production capacity by making a
limited investment in grinding capacity without a corresponding investment in earlier stage
production equipment such as kilns. Further, the only cost incurred for fly ash is transportation
cost from the thermal power plants that generate it to the cement manufacturing site, as fly ash
is currently available free of cost. The use of fly ash therefore significantly reduces the overall
cost of production of cement. The advantage of PPC is its low heat of hydration and
corresponding resistance to exposure to various environmental chemicals such as salt water. It
is particularly suitable for marine and hydraulic construction and other mass concrete
structures.
This cement has durability that is equivalent to OPC and can be used most of the
applications where OPC is used. As PPC is generally sold at a comparable price to OPC and
the cost of production of PPC is comparatively lower, PPC's margins per ton are generally
higher compared to OPC.
47
JK WHITE CEMENT :
It manufactures cement under the brand names J.K. White and Camel. White cement is
produced using a different quality of limestone and is distinguished from grey cement by its
white colour. Each ton of white cement requires approximately 1.33 tons of limestone, 0.02
tons of gypsum and 0.2 tons of additives including with clay, feldspar and fluorspar.
White cement is typically used in three principal areas of application, as set forth below :
Flooring, for the manufacturing and laying of mosaic tiles and as tile fixing grout, wall
applications, such as decorative white cement paints and plain and spray plasters; and Other
specialized applications including glass fibre reinforced concrete, garden furniture, lamp posts,
as pointing for brick and stone works and as pre-cast cladding panels.
We sell white cement primarily in the Indian market. We also export white cement to a
number of countries, including South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri
Lanka, Kenya, Tanzania, United Arab Emirates and Nepal.
JK WALL PUTTY :
White cement base putty for luxurious and silky interior/exterior finish of your dream
home. JK Wall Putty is White Cement based putty for cement plastered walls and ceilings. J.K.
Wall Putty is used to fill the uneven surfaces of cement plastered walls and concrete walls.
Application of J.K. Wall putty provides smooth and strong finish to the walls for further
application of all kinds of paints. The smooth finish gives better look to interiors and exteriors.
Surface Preparation: The surface should be cleaned to make it free from dirt, dust,
grease, oil and paint. All foreign impurities should be removed with a wire-brush. Wall surfaces
should be cured so that the surface is saturated with water yet in 'touch dry' conditions.
48
Treatment of New Surface: The new surface requires only soft treatment such as
removal of dust, dirt and foreign matter. In case of cracks, voids and damager; it should be
patched up prior to application of J.K. Wall Putty with grey/white cement.
Treatment of Old Surface: All loose material and/or organic growth must be removed
with Putty blade or brush. In case of old painted surface scrub the surface with coarse emery
stone/paper.
Preparation of J.K. Wall Putty Paste : J.K. Wall putty is a fine powder. Mix slowly J.K.
wall putty with approx. 40% water by volume to prepare paste of desired consistency. Mix
vigorously for 5-10 minutes for making lump free, uniform and smooth putty paste. Product
should be mixed in required quantities to be used within 2-3 hrs of its preparation.
Application : Apply uniformly the first coat of J.K. Putty with blade/trowel on the wall
from bootom to top. Apply second coat after the first coat has dried completely. Limit the total
thickness of 2 coats to 1.5 mm. Allow complete drying and then use fine emery paper to
remove the application mark if any. Any kind of paint can be applied on this surface. Use water
for curing before applying paint.
Precaution : Although J.K. Wall Putty does not contain any toxic material, use rubber
gloves while mixing, as prolonged exposure with water may soften the skin resulting in fine
cuts/legions due to cement particles. Precaution should be taken to avoid dust inhalation while
handling the powder putty.
Storage : Store J.K. Wall Putty in a dry place and open the pack just before use. Keep
out of reach of children.
PRODUCTION ANALYSIS TABLE : IN TONS
49
FINANCIAL ANALYSIS : IN MILLION
Year Turnover PBT
2005-06 11087 522
2006-07 15297 2720
2007-08 18128 3466
2008-09 18765 2340
2009-10 22481 3112
50
Year Clinker Cement
1995-96 1753970 1713202
2000-01 1627645 1807573
2005-06 3170268 3511022
2006-07 2907196 3638786
2007-08 2917045 3690726
2008-09 3024091 3646220
2009-10 3050050 4280500
COPORATE PROFILE
Customer Satisfaction
Always invest in Latest Technology
Huge Distribution Network Creation
Expansion through Balancing Equipment
Constant focus on Cost Control & Quality
Invest in Managers & Develop People Skills
Stability of Executive Management & Low Employee turnover
Social Welfare – A Priority
51
SIGNIFICANT ACCOUNTING POLICIES :
1. Accounting Concepts : The financial statements are prepared under the historical cost
convention (except for fixed assets which are revalued) on an accrual basis and in accordance
with the applicable mandatory Accounting Standards.
2. Fixed Assets : Fixed assets are stated at cost (including expenses related to acquisition
and installation) adjusted by revaluation of fixed assets.
3. Investments: Current investments are stated at lower of cost or fair market value. Long
term investments are stated at cost after deducting provisions made for permanent diminution
in the value, if any.
4. Inventories: Inventories are valued at "Cost or net realizable value, whichever is lower".
Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition. 'First-in-First-out' or 'Average cost' method
is followed for determination of cost.
5.Depreciation:
i) Depreciation is provided on straight line method at the rates specified in the Schedule
XIV to the Companies Act, 1956.
ii) Depreciation on additions/deductions to fixed assets is being provided on pro-rata
basis from/to the month of acquisition/disposal.
iii) Depreciation on additional value of Revalued Assets is provided on the basis of life
determined by the valuers. An amount equivalent to depreciation on additional values
resulting from revaluation is withdrawn from Revaluation Reserve and credited to Profit
& Loss Account.
iv) Good will is amortised over a period of ten years.
52
v) Leasehold land is amortised over the period of lease.
6. Retirement Benefits: - The Company's contributions to Provident Fund and
Superannuation fund are charged to Profit & Loss Account. Contribution to Gratuity Fund and
Provision for Leave encashment are made on the basis of actuarial valuation and charged to
Profit & Loss Account.
7. Foreign Exchange Transactions: Foreign currency transactions are accounted at
equivalent rupee value earned/incurred. Year-end balance in current assets/liabilities is
accounted at applicable rates.
8. Borrowing Cost : Interest and other costs in connection with the borrowing of the funds to
the extent related/attributed to the acquisitions/construction of qualifying fixed assets are
capitalized upto the date when such assets are ready for its intended use and other borrowing
costs are charged to Profit & Loss Account.
9. Provision for Current and Deferred Tax: Provision for Current Tax is made on the basis of
estimated taxable income for the current accounting period and in accordance with the
provisions as per income Tax Act, 1961.
Deferred tax resulting from "timing difference" between book and taxable profit for the year is
accounted for using the tax rates and laws that have been enacted or substantially enacted as
on the balance sheet date. The deferred tax asset is recognized and carried forward only to
the extent that there is a reasonable certainty that the assets will be adjusted in future.
10. Miscellaneous Expenditure: Preliminary expenses are amortised over a period of five
years from the year of commencement of manufacturing activity.
Deferred Revenue Expenses: Expenses on Mines Development/overburden removal is
deferred and amortised over a period of Lease/extraction from Mines.
53
11. Contingent Liabilities : Contingent liabilities are not provided and are disclosed in Notes
on Accounts.
54
SALIENT FEATURES :-
First dry process plant in India.
Latest process percalcinator technology for clinker
UNT – II was first PLC controlled cement plant in India
Most modern and sophisticated central control room for entire process control form on
point .
First Fuzzy Logic Control kiln and Cem-scanner for monitoring of Kiln shell temperature
in India.
On-line quality control by X-ray analyzer
First computerized maintenance management system in Indian cement industry
Now computerized management system extended to stores, purchase, sales accounts,
Personnel functions.
Continuous ongoing process of training & development
55
SIGNIFICANT HAPPENINGS :-
The key events in respect of the J.K. Synthetics Ltd. Cement Division and the
company are us under :
1975 : The grey cement plant at Nimbahera, with an initial capacity of 0.3 MnTPA, commenced
commercial production.
1979 : A second production line was added at Nimbahera, increasing the capacity from 0.3
MnTPA to 0.72 MnTPA.
1982 : A third production line was added at Nimbahera, increasing the capacity from 0.72
MnTPA to 1.14 MnTPA.
1984 : Lime-based white cement plant was established at Gotan, with an initial capacity of
0.05 MnTPA.
1987 : A captive thermal power plant was installed at Bamania.
1988 : A pre-calciner was installed at Nimbahera, increasing the total capacity to 1.54 MnTPA.
1990 : The JKSL Cement Division instituted "Architect of the Year" award.
1994 : (i) The Company was incorporated.
(ii) The "Regional Training Centre" for Northern India, Which was established at the
Nimbahera plant of the JKSL Cement Division with aid from the World Bank and the
Danish International Development Agency, commenced service.
2000 : The total capacity of the white cement plant at Gotan was increased to 0.3 MnTPA as a
result of continous modernization and upgradation.
2001 : A new grey cement plant with a capacity of 0.75 MnTPA was installed at Mangrol.
2004 : (i) The Company acquired the J.K. Synthetics Ltd. Cement Division
56
(ii) The total capacity of the grey cement plant at Nimbahera was increased to 2.8
MnTPA as a result of continous modernization and upgradtion.
2005 : (i) The Company allotted 7,426,950 Equity Shares to the shareholders of J.K.
Synthetics Ltd. pursuant to the AAIFR order dated January 23, 2003.
(ii) The Company was listed on the BSE.
2006 : (i) The Company has issued/allotted. 2,00,00,000 Equity Shares of Rs. 10/- eac at a
price of Rs. 148/- per share for cash to public aggregating Rs. 296 crores on 9th March, 2006.
The issue was made through the 100% book building process.
(ii) The aforesaid Equity shares of the Company got listed on the Bombay Stock
Exchange Ltd, (BSE) and the National Stock Exchange (NSE) on 13.03.2006.
2008: The company alloted captive powar plant of 7.5 MW at Gotan Captive use.
2009-10: The company capacity in 09-10 3.25 MTPA increased from previous year capacity
2.8 MTPA.
57
ANNUAL RESULTS – A GLIMPSE
Annual Results 2009 have been published there by a brief view of Annual Results of
Sales, Operating Profits, expenses have been given as in following Income Data coupled with
profit and loss statements. Interim results 2008-2009.
Recommended Dividend of Rs. 5.00 per share
The Company's performance during the year ended 31st March,09 as against previous
year, have also shown substantial improvement and the Net Turnover has increased by 20%
(Rs. 4354 crores vs. Rs. 3633 crores) profit before tax increased by 142% (Rs. 1067 crores
vs. Rs. 443 crores). The Earning per share increased to Rs. 37.9 as against Rs. 25.5 of 2006-
07 The Board of Directors recommend a Dividend of Rs. 5.00 per share.
The work on the captive power Projects is in advance stage of completion and 75 MW
Power Plant will be commissioned in first week of June, 08. The other power projects would be
completed in phases within next 4-5 months time. The company expects substantial savings in
power cost upon implementation of these Power projects.
The refurbishing of the acquired assets of M/s. Nihon Nirman Ltd. has also started and
the plant is expected to put into operation in January, 2008.
The work on the new green filed cement Plant at Mudhol, Karnataka has also been
initiated, and commissioned in December, 2008.
The company net profit multiplied by almost seven times from 32.56 crores in 2005-06
to 224.55 crores in 2009-10.
58
FINANCIAL ANALYSIS
NET SALES
59
EBIDTA
PROFIT AFTER TAX(PAT)
EARNINGS PER SHARE(EPS)
60
BOOK VALUE PER SHARE
NETWORTH
61
GROSS BLOCK
MAJOR CEMENT PRODUCING STATES IN INDIA
62
63
64
J.K.CEMENT PLANT: NIMBAHERA
Interim results :
No. of Months
Year ending
31.12.2008 31.03.20
09
01.03.2010
Net Sales Rs m 3,633 14969 18268
Other Income Rs m 0 791 1918
Turnover Rs m 3,633 18765 22481
Expenses Rs m 2,927 12780 15426
Gross profit Rs m 707 1,303 3,296
Depreciation Rs m 130 141 524
Intrest Rs m 134 118 455
Profit Before Tax Rs m 443 2340 3113
Tax Rs m 156 339 852
Profit After Tax Rs m 287 1424 2260
Gross Profit Margin % 19.5 21.9 21.9
Effective Tax Rate % 35.2
39.1
39.1
Net profit Margin % 7.9 9.5 12.37
65
EQUITY SHARE DATA ;
No. of Months
Year Ending
31.03.2008
31.03.2009 31.04.2010
High Rs 200 231 257
Low Rs 101 109 123
Sales per share Rs 124.9 176.4 208.5
Eamings per share Rs 4.7 25.5 37.9
Cash flow per share Rs 9.1 30.3 43.8
Dividends per share Rs 1.50 3.50 5.00
Dividend Yield (Eoy) % 1.0 2.1 2.6
Book value per share Rs 96.2 117.0 150.4
Shares Outstanding ( Eoy) M 69.93 69.93 69.93
Bonus/Rights/Conversions PI - -
Price/Sales Ratio X 1.2 1.0 0.9
Avg P/E Ratio X 32.3 6.7 5.0
P/CF Ratio (Eoy) X 16.5 5.6 4.3
Price/Book value Ratio X 1.6 1.5 1.3
Dividend Pay out % 32.2 13.7 13.2
66
Avg Mkt Cap. Rs m 10,524 11,888 13,287
No. of Employees 000 2 2 2
Total Wages/Salary Rs m 412 495 685
Avg. Sales/Employee Rs th 5,213.0 7,474.5 8,763.8
Avg. Wages/ Employee Rs th 245.8 300.0 411.7
Avg. Net Profit employee Rs th 194.5 1,082.4 1,593.8
Income Data :
No. of Months
Year Ending
31.03.2008 31.03.2009 31.03.2010
Net Sales Rs m 8,737 12,333 14,583
Other Income Rs m 94 288 232
Total revenues Rs m 8,831 12,621 14,815
Gross Profit Rs m 1,320 3,293 4,157
Depreciation Rs m 310 332 411
Interest Rs m 582 529 512
Profit before Tax Rs m 522 2,720 3,466
Minority Interest Rs m 0 0 0
67
Prior Period Items Rs m 0 0 0
Extra Ordinary Inc (Exp) Rs m 0 0 0
Tax Rs m 196 934 814
Profit after Tax Rs m 326 1,786 2,652
Gross Profit Margin % 15.1 26.7 28.5
Effactive tax rate % 37.5 34.3 23.5
Net Profit margin % 3.7 14.5 18.2
BALANCE SHEET DATA :
No. of Months
Year Ending
31.03.2006 31.03.2007 31.03.2008
Current assets Rs m 5,094 4,657 4,647
Current Li abilities Rs m 1,923 2,148 3,017
Net Working Cap to sales % 36.3 20.3 11.2
Current Ratio X 2.6 2.2 1.5
Inventory Turnover Days 35 33 29
Debtor’s Turnover Days 19 18 14
Net Fix assets Rs m 9,549 11,533 15,473
68
Share Capital Rs m 699 699 699
Free Reserves Rs m 2,860 3,160 3,902
Net Worth Rs m 6,725 8,184 10,514
Long term debt Rs m 5,133 5,577 6,166
Total assets Rs m 14,643 16,340 20,206
Interest Coverage X 1.9 6.1 7.8
Debt to equity Ratio X 0.8 0.7 0.6
Sales to assets Ratio X 0.6 0.8 0.7
Return On assets % 7.7 16.8 19.0
Return of Equity % 4.8 21.8 25.2
Return on Capital % 9.3 23.6 23.8
Exports to sales % 1.0 0.0 0.0
Imports to sales % 0.7 0.0 1.0
Exports (fob) Rs m 90 0 0
Imports (cif) Rs m 59 0 151
Fx In Flow Rs m 90 0 0
Fx Out flow Rs m 69 0 0
Net Fx Rs m 21 0 0
ANNUAL REPORT FOR THE YEAR ENDED 31 st MARCH 2010
69
FINANCIAL RESULTS -
2009 (Rs. In Lacs) 2010
Gross turnover 182645.39 224806.61
Profit before depreciation & taxes 28638.28 39676.80
Less: depreciation 5242.22 8550.94
Profit before tax 23396.86 31125.86
Provision for tax - -
Fringe befefit tax 196.50 -
Current tax 5568 5303
Deferred tax 3397.16 8520
Profit after tax 14234.40 22599.86
Add: Balance brought forward from the
previous year
13118.47 14489.40
Less: Transfer to general reserve 15000.00 10000.00
Less: Proposed dividend on equity
shares (Including tax there on)
2863.39 4899.22
Balance to be carried forward 14489.48 17181.48
70
OVERALL PERFORMANCE :
The year under report has been the first full year of operations of cement units in the
Company. The Company achieved profit before tax of Rs. 2340 crores and turnover of Rs.
15047 crores. Earning per share at Rs. 6.37 in the very first year of its full operations indicates
the Company's satisfactory performance. The equity issue made in March, 2006, which raised
Rs. 296 crores, has also improved the Company's financial strength. Net worth of the
Company as on 31.3.2006 was Rs. 354.00 crores compared to Rs. 54.59 crores as at
31.3.2005.
DIVIDEND: Your Directors are happy to recommend the dividend @ Rs. 5.00 per share on
Equity Shares for the financial year ended 31.3.2008.
OPERATIONS -
GREY CEMENT :
During the year under report production of Grey Cement at 35.11 lacs tons as against
installed capacity of 35.50 lacs tons resulted in capacity utilization of 98.9% There has been
gradual increase in price realization due to higher off-take supported by growth in demand.
This enabled the unit to achieve higher profits inspite of increase in petroleum price and higher
freight incidence.
WHITE CEMENT :
The capacity of white Cement plant has been enhanced by 50,000 M.T. per annum from
28th February, 2006 The production of white cement at 226729 tons during the year resulted in
capacity utilization of 74.5% Growth in demand was below expectation and the production was
regulated to keep pace with the demand. This had adverse effect upon the profitability of the
unit.
71
PROJECTS IN PROGRESS :
Directors have Taken up various schemes for cost saving and enhacement in capacity
in phased manner. Schemes involving capital expenditure of Rs. 236 crores being financed by
the funds raised through issue of equity shares made in March, 2006 are –
(i) Cost Saving Schemes :
Power is a major component of cost of production. Company has to rely at
present on state grid nd diesel generating sets which are relatively expensive source of power.
Due to this the average power cost in our cse is significantly higher compared to other plants
who have their own captive power plants. With a view to reduce power cost the Company is
implementing three projects
(1) 20 M.W Petcoke based power plant
(2) 13.2 M.W. Waste heat Recovery power plant which will generate power from gases
emitted in production process, and
(3) Replacement of existing 7.5 M.W. turbine by a 10 M.W. turbine at Bamania.
These power project will generate power at substantially lower cost. Besides
Waste Heat Recovery power plant will also generate revenues from carbon trading. These
schemes are likely to be comp leted by June, 2008 in phases.
(ii) Capacity Enhancement:
Gery Cement plants are operating at present at almost full capacity. To capitalize
on the high growth in Northern India and to meet increased demand of blended cement,
72
Company intends to increase production capacity by increasing the grinding capacity at
Nimbahera by 5,00,000 tons which is likely to be implemented by June, 2006.
Company is also in the process of enhancing the capacity of White Cement by 1,00,000
tons per annum in two phases to meet the peak seasonal demand as well as to meet future
growth in demand. First phase to increase capacity by 50,000 tons has already been
implemented in February, 2006. Second phase is expected to be implemented by June, 2008.
(iii) Future Growth plans : Your directors are also exploring the possibilities for putting up
new grinding facilities / grass root plant for manufacture of grey cement for which details are
being studied in depth.
FINANCE
(a) During the year under report, the Company has allotted 20 million Equity Shares of
each at a premium of Rs. 257/- on 31.3.2008 through Public issue made vide
prospectus through Book Building Route. The said Issue was subscribed by 1.815
times
(b) During the year, Company raised Terms Loans aggregating Rs. 40 crore form
Indian Overseas Bank and Canara Bank, which have been utilized in repayment of
costlier loan.
(c) During the year, Company has been sanctioned Working Capital Facility have been
increased from rs 70 crore to rs 105 crores.
RE-VALUATION OF ASSETS
As reported last, the Company had re-valued certain assets at the time of acquisition of
Cement undertakings on 4.112004 and accretion on this account was credited to "Revaluation
Reserve A/C." During the year, some additional sales tax liability pertaining to the period prior
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to acquisition date has fallen upon the Company, which has been capitalized and consequently
the Revaluation Reserve has reduced.
LISTING OF SHARES:
The Company's Equity Shares are duly listed with Bombay Stock Exchange Ltd. and
National Stock Exchange of India Ltd.
CORPORATE GOVERNANCE:
A report on Corporate Governance is enclosed as part of Annual Report along with the
Auditor's Certificate on its compliance.
PERSONNEL :
INDUSTRIAL RELATIONS:
The industrial relations during the period under review generally remained cordial at all
Cement plants.
PARTICULARS OF EMPLOYEES:
List of employees getting salary in excess of the limits as specified under the provisions
of sub-section (2A) of Section 217 throughout or part of the financial year under review is
annexed.
PUBLIC DEPOSITS:
Your Company has not invited any deposits from public / shareholders in accordance
with Section 58A of the Companies Act, 1956.
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CONSERVATIONOF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO.
Particulars with regard to Conservation of Energy, Technology Absorption, Foreign
Exchange Earnings and out go in accordance with the provisions of Section 217(1)(e) of the
Companies Act, 1956 read with the Companies (Disclosures of particulars in the Report of
Board of Directors) Rules, 1988 in respect of Cement plants are annexed and form part of the
Report.
COST AUDIT:
Cost Audit records have been maintained in respect of Grey Cement and White Cement
for the year 2007-08 and cost audit would be completed in respect of these units.
DIRECTORS:
During the year under report Dr. K.B. Agarwal has been appointed as Additional
Directors on the Board of Directors of the Company and he hold office up to the ensuing
Annual General Meeting. The Company has received notices u/s 257 of the Companies Act,
1956 from shareholders, proposing the candidature of the office of Director of the Company
along with the requisite fees. You are requested to consider therir appointment. Three of yours
Directors namely Shri R.K. Lohia and Shri A. Karati , & Shri Ashok Sharma will retire by
rotation at the ensuing Annual General Meeting and are eligible for reappointment.
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RESPONSIBILITY STATEMENT
The Directors confirm that :
(i) In the preparation of the annual accounts, the applicable accounting standards have
been followed and that no material departures have been made from the same.
(ii)They have selected such accounting policies and applied them consistently and
made judgments and estimates that are reasonable and prudent so as to give a true
and fair view of the state of affairs of the Company at the end of the financial year and
of the profit of the Company for that year;
(iii)They have taken proper and sufficient care for maintenance of adequate accounting
records in accordance with the provisions of the Companies Act, 1956 for safeguarding
the assets of the Company and for preventing and detecting fraud and other
irregularities; and
(iV)They have prepared the annual accounts on a going concern basis.
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PERFORMANCE REVIEW STATEMENT
Recommended Dividend of Rs. 5.00 Per share. The Company's Board of directors met
on 12th May, 09 to review the working of the Company for the year ended 31st March, 2009 and
for Jan. – Mar. 09 quarter. The Company's performance during the year ended 31st March,
2010 as against previous year, have also shown substantial improvement and the Gross
Turnover has increased by 18.5%, Profit before tax increased by 142% (Rs. 1067 crores vs.
Rs. 443 crores)
The Earning per share increased to Rs. 37.9 as against Rs. 25.5 of 2009-10. The Board
of Directors recommend a Dividend of Rs. 5.00 per share. The work on the Captive Power
Projects is in advance stage of completion and 20 MW Power Plant will be commissioned in
first week of June, 07. The other power projects would be completed in phases within next 4-5
month's time. The Company expects substantial savings in power cost upon implementation of
these Power Projects.
The refurbishing of the acquired assets of M/s. Nihon Nirman Ltd. has also started and
the plant is expected to put into operation by the quarter ending December, 07. The work on
the new Green Field Cement plant at Karnataka has also been intiated and will be
commissioned in the quarter January-march, 2009.
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PERFORMANCE REVIEW : HIGHLIGHTS
(2009 – 10 vs. 2008 – 09)
There has been marked improvement in the performance of the Company during the
year. Highlights of performance during the year ended 31st March, 2010 as against previous
year are as under –
2009-10 2008-09 % inc. /(dec.)
Production
Grey Cement (Ton) 3640823 3511022 4%
White Cement (Ton) 248880 226729 10%
Gross Turnover (Rs./Crore) 1529.7 1108.7 38%
Net Turnover (Rs./Crore 1233.3 873.7 41%
PBIDT (Rs./Crore) 1233.3 136.9 148%
Profit before tax (Rs./Crore) 272.0 52.2 421%
Profit after tax (Rs. Crore) 178.6 32.6 448%
Earning per share (Rs.) 25.54 6.37 301%
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Quarter Performance :
(Jan.-Mar.,10 vs. Jan. – Mar.,09):
Similarly, there has been substantial improvement in the performance of the company
during the quarter also. The efforts and steps taken by the Company has started showing
positive results. The production of Grey Cement increased by 92, 792 tons in the quarter. This
coupled withimproved realization has resulted increase in Net Turnover by 49% (Rs. 366.6
crores vs. Rs. 245.9 crores) while PBIDT has increased by 144% (Rs. 115.1 crores vs. Rs.
47.2 crores) Profit before tax increased by 265% (Rs. 97.2 crores vs. Rs. 26.6 crores) and Net
Profit by 274% (Rs. 61.4 crores vs. Rs. 16.4 crores) The Earning per share increased to Rs.
8.78 as against Rs. 2.98 during corresponding quarter of previous year. Highlights of
performance during the quarter Jan. – Mar., 10 vis-à-vis the same quarter of the previous year
are as under –
Jan. – Mar., 10 Jan. – Mar., 09 % inc./(dec.)
Production
Grey Cement (Ton) 952179 859387 11%
White Cement (Ton) 67105 66820 0.4%
Gross Turnover (Rs./Crore) 455.8 304.3 50%
Net Turnover (Rs./Crore) 366.6 245.9 49%
PBIDT (Rs./Crore) 115.1 47.2 144%
Profit before tax (Rs./Crore) 97.2 26.6 265%
Profit after tax (Rs. Crore) 61.4 16.4 274
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Earning per share (Rs.) 8.78 2.98 195%
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RESEARCH METHODOLOGY
The main objective of a research is to find out the truth which is hidden and which has
not been discovered. According to advance learner’s dictionary of current English the definition
of research is:- “A careful investigation or enquiry especially through search for new facts in
any branch of knowledge”
R - RATIONAL WAY OF THINKING
E -EXPERT AND EXHAUSTIVE TREATMENT
S -SEARCH FOR SOLUTION
E -EXACTNESS
A -ANALYTICAL
R -RELATIONSHIP OF FACTS
C -CAREFUL RECORDING
H -HONESTY AND HARDWORK
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TITLE OF THE STUDY
“ MANUFACTURING PROCESS AND FINANCIAL ACTIVITIES”
DURATION OF PROJECT.
My summer Training duration is 21-6-10 to 9.08.2010
OBJECTIVE OF STUDY
THE RESEARCH OBJECTIVES :-
(i) To find out the brand performance of J.K. Cement in the market.
(ii) To find out the problems of dealers and retailers in the business with
this brand/company.
( iii) To find out the scope of expansion of business by providing more new
dealerships.
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TYPE OF RESEARCH
RESEARCH:
Research in common parlance refers to a search for knowledge. One can
also define research as a scientific and systematic search for pertinent information on a
specific topic. In fact, research is an act of scientific investigation. The advanced learner’s
Dictionary of Current English lays down the meaning of research as “a careful investigation or
inquiry especially through search for new facts in any branch of knowledge.” “A careful
investigation or enquiry especially through search for new facts in any branch of knowledge.”
It is an academic activity which contributes to the existing stock of knowledge, making for its
advancement. It comprises of: data collection, observation, comparison, interpretation and
findings. It refers to a systematic method of enunciating the problem.
Thus when we talk about research or research methodology we not only talk about research
method but also consider the logic behind it.
RESEARCH DESIGN
It is a plan of action to be carried out in connection with the research project. It is
the guideline for the researcher to enable him to keep track of his action and to know weather
he was moving in the right direction or not. It is the framework or
plan for a study that is used as guide in collecting and analyzing the data. It is the blue print
that is followed in completing a study. There are various types of research with its pros and
cons. Each is meant for its specific purpose. Hence here in this project, I used the descriptive
type of research.
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SAMPLE SIZE AND METHOD OF SELECTING SAMPLE
Sample size Total – 44
Sampling units jaipur
Sampling procedure Judgement sampling
Research design Exploratory
Data collection method Survey
Research instrument Questionnaire
Type of questionnaire Structured
Type of question Close and open ended
Area covered finance office and factory visiting
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SCOPE OF THE STUDY
A big boom has been witnessed in Cement Industry in resent times. A large
number of new players have entered the market and trying to gain market share in this rapidly
improving market.
The research was carried on in Nimbahera. I had been sent at one of the branch of JK
CEMENT where I completed my Project work. I surveyed on my Project Topic “CEMENT
MANUFATURING PROCESS AND FINANCIAL ACTIVITIES” on the visiting customers of the
Nimbahera Branch of JK CEMENT.
The study will help to know the preferences of the customers, which company, mode of
investment, option for getting return and so on they prefer. This project report may help the
company to make further planning and strategy.
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LIMITATION OF THE STUDY
The research conduct was limited to chittorgarh region only.
Due to time constraints, more time could not be devoted to individual respondent.
Due to unwillingness of providing any information, the respondents filled the
questionnaire casually which might have effected the conclusion.
Marketing manager being busy with his job. He was not able to spare enough time for
our proper guidance.
A busy schedule of dealers / retailers also makes the collection of information a very
difficult one.
Full district was not covered as this is very tedious job to be done in 7 – days.
However almost all main areas of the district were covered.
The projections are purely based on verbal meetings and may be influenced by
unprecedented factors. was a big problem in this survey.
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87
Q. WHAT IS THE TOTAL SCORE OF JK CEMENT IN INDIAN MARKET?
according to above shown pie-chart we can analyse that J.K. cement have 12% share in
Indian market.
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Q. COMPARE THE ADVERTISEMENT PERCENTAGE OF JK CEMENT WITH OTHER
CEMENT INDUSTRIES?
This diagram shows the comparative study of advertisement ratio of various cement industries. We can notice that the JK cement industry invest less money in advertisement as compare to other cement industries.
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Q. WHAT ARE THE PREFRENCES OF JK CEMENT IN CEMENT MARKET?
From above chart we have analysed that the JK cement have less preference as compare to other cement industries.
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Q. WHAT IS THE PRICE ANALYSIS AND DISCOUNT RATE OF VARIOUS CEMENT BRANDS.
COMPANY PRICEWHOLE SALES PRICE CASH DISCOUNT
J.K. 206 202 4
BIRLA 210 205 5
BINANI 203 200 3
BANGUR 202 200 2
According to pie chart shows j.k.cement gives more cash discount to whole saler for more bulk purchasing in compare to another industries.
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4.FACTS AND FINDINGS:
GREY CEMENT : INDUSTRY STRUCTURE AND DEVELOPMENT
The Indian Cement Industry is highly fragmented comprising of over 50 cement players
and 130 manufacturing plants. The industry is also highly regionalized, as cement units are
concentrated in clusters, close to the limestone deposits. Competition is also regionalized
since low – value commodity makes transportation over long distances un-economical.
Cement demand has posted a healthy growth rate of 11.16% in tandem with strong economic
growth of the country. The industry capacity was 157 million tons. The industry achieved
production of 140.81 million tons compared to 127.57 million tons during corresponding
previous year. Growth of 11.16% is substantially higher compared to 8.57% in the previous
year. In North India where the Company operates, the demand growth was at 11% The
favorable demand – supply scenario helped the price realization to improve gradually. Exports
also contributed in accelerating the demand growth. These factors resulted in higher export
volumes and provided better prices.
OUTLOOK
INDUSTRY:
The prospects of cement industry over medium term are encouraging. Growth in
housing sector continued to be the key demand driver on the back of fiscal incentives. Apart
from roads, other infrastructure projects like ports, airports, power projects, dam & irrigation
projects are expected to perk up cement demand. The Bharat Nirman Yojana for rural
infrastructure such as connecting villages with pucca roads, rural housing, irrigation is
expected to generate huge demand from rural India.
This apart, cement demand will further receive a fillip from significant rise in industrial
project. Large Export potential shall also be a major demand driver. The Industry is expected
to grow at 8-9% in medium term. Growth in demand in North India is expected to be higher due
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to major construction activities underway for Common Wealth games scheduled in the year
2010.
COMPANY :
The Company's performance in the current fiscal is likely to show an improvement over
last year on account of (a) benefits of improved realizations for whole of the year, (b) additional
production due to enhancement in grinding capacity from June, 06, (c) benefits of working
capital facilities sanctioned in last quarter of previous year, (d) commissioning of 10 M.W.
turbine during later part of the year and (e) further, increase in production of blended cement.
RISKS AND CONCERNS :
Cement consumption is also a function of macro external factors such as economic
growth, government policies etc. The growth in cement demand is directly co-related with
economic development. In the highly unlikely event of slowdown in economy or Infrastructure
development activities, cement demand could be adversely affected, which may also impact
the cement prices.
Cement being a bulky material, both input and output transporation cost is significant in
the industry. With international crude prices firming up, transportation cost is scaling high and
high in the country. Another area of concern is transportation bottleneck due to loading
restrictions. The road transportation fleet capacity has to be increased substantially to cater to
increasing need of transport of cement and other industries.
Further, Cement sector is directly affected by coal shortage. Coal prices too hve been
climbing up. Freight, power and coal being major component of cost, any increase in their
prices adversely affects the profit margins of the Industry.
In the state of Rajasthan various cement units are enjoying different saleds tax benefit
anging form 25% to 75% Company gets bendift at lowest slab of 25% and this differential
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benefit affects the margins. In the past J.K. Cement units successfully restricted the impact of
increase in the cost of inputs to a large extent by implementation of modernization schemes.
J.K. Cement is taking a number of initiatives with relentless thrust on cost reduction,
improvement in efficiency and productivity to meet the future challenges. The impact of
increase in cost is likely to be compensated by firming up of sale prices due to favourable
demand – supply equation.
WHITE CEMENT : INDUSTRY STRUCTURE AND DEVELOPMENT :
These are three manufacturers of White Cement in India. J.K. White and Birla White
have national presence, while Travancore cement is restricted to the states of Kerals and
Tamil Nadu. After levy of anti – dumping duty, there have been negligible imports into India.
The Domestic White cement industry grew by around 3.6%. There has been growth in the
Exports also.
OPPORTIUNITIES AND THREATS :
White Cement has been low involvement category product, i.e. the general masses
have not been involved with the applications of White Cement and still it is considered as high
end product of aesthetic use. To involve the masses, there is need to go for mass media to
highlight various applications and use of White Cement. As a strategic initiative, Company
decided to reach out to RURAL areas for promotion of IN-SITU application. White Cement
applications face major threats form competing products, thereby threatening the very
existence of such industries.
For instance, Mosaic Tile industry has been fcing a battle for survival, with Ceramic tile
industry and Marble Stone eating up the market share. Similarly, Cement Paint industry has
been feeling the heat due to the entry of new generation Polymer based exterior Paints
marketed aggressively by Paint majors.
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SEGMENT-WISE AND PRODUCT-WISE PERFORMANCE :
Small pack segment grew by about 14% over previous year. While White Cement Paint
industry had showed signs of growth, the Mosaic Tiles industry faced rough weather. Many
Mosaic Tile manufacturers shut shops during the year especially in Morvi, Indore, Pune and
Mumbai. Designer Tile segment continued to record positive growth and to encash the
opportunity several new units have planned to enter the arena.
OUTLOOK :
Efforts have been made during the year to increase the popularization of White Cement
among the general public. Increased level of awareness has been tried through mass media
and by personal selling. In states where mass media is unable to reach, marketing field team
has been able to penetrate. Rural van shows were organized towards this end on a continuous
basis in U.P., Maharashtra and M.P. More such activity is planned in states like Bihar, West
Bengal, Orissa, Karnataka and Andhra Pradesh in the coming year.
In the coming years applications like White Cement underbed for the Marble floor and
Cement Wash applications shall be attempted to be popularized. Another application, of Wall
Putty caught the fancy of the Engineer / Contractor / Architect fraternity and is poised for
significant growth in the times to come.
RISKS AND CONCERNS
In case of White Cement fuel cost plays a vital role. The constant increase in the prices
of fuel has been a cause of concern for the industry. Firming up of fuel prices will have a direct
impact on cost of captive power generation fuel cost and freight. Due to resistance in the
market on account of poor growth rate, the chances for passing on the cost increase to the
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consumers remain very tittle. White Cement business has a large share of trade involvement
which makes it open to sell on credit. With a view to restrict level of credit at times the
Company has to take risk of losing sales. The high level of credit outstanding in another cause
of concern.
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S : - STRENGTH
W : - WEAKNESS
O : - OPPORTUNITY
T : - THREATS
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STRENGTHS :-
1. J.K. CEMENT possess good brand image in the existing markets which is definitely a
par of pavement brick for it.
2.Locatin has always been and important factor in Rajasthan extensive (about 2500 mt)
of cement grade limestone available.
3.Sound financial position with adequate profits and capital assets base.
4.Good plant having 10000 tons per day production capacity
WEAKNESSES
1. Low sales as compared to market potential. The market potential of the Udaipur
market is high but as compared to it the sales of J.K. Cement is low.
2.Lack of self – enthusiasm in the working pattern of the executives as a result the
aggressiveness towards sales is low.
3.High complaints of quality deterioration in J.K. super brand.
4.Less advertisement and negligible sales promotion schemes as compared to other
brands.
5. Monopoly of dealers is affecting the sales.
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OPPORTUNITIES :-
1.India is the second larges producer of cement after China but is per capita
consumption is very low i.e. around one third of world average and substantially lower
as compared to per cpita cement consumption of developing countries.
2.With demand expected to grow at around 8 – 9 %, additional capacity of 12 million
tons per annum will be required to match the damand. With limited green field capacity
addition in pipeline for next two years, country is heading towards more favourable
demand – supply scenario.
3.Explosion of quality yet to be displayd to capture large customers.
4.Competitive prices and may increase the discount and margin structure for retailers
and dealers.
THREATS :-
1.However, with the increased margins there is a possibility of over bunching of
capacities in the long term as some of the players have already announced new
capacities and the pace of capacity addition may be higher than demand growth.
2.There are many dealers of low profile may cause a loss product performance to grow
and prosper.
3.Price flucturatins and price war is general phenomena in the cement industry.
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SUGGESTION
A company would b wise to measure customer satisfactions regularly the key to
customer retention is customer satisfaction.
Company can increase the role of the retailer by considering their suggestions or
complaints about service or product, so that necessary action can be taken.
Review meetings should be often held so that the working pattern of the
Executives can be checked and improved if needed.
Executives need to be more self-enthusiastic and aggressive towards sales for
these appraisals should be given to those executives who worked hard.
Company representatives should visit retailers and should make a long term
relationship with the retailer so that they can push the product.
Since customer are value maxi miser and their expectation to this brand is high,
as the brand image shows their complaints should be attended immediately to
make then remain brand loyal.
It should be checked that the non- trade consignment is not sold in the market,
so that is does not disturb the retail price of the market.
Since transportation forms the major part of the cement cost, market potential of
the region should be properly accessed so that emphasis can be more on high
retention zone, which can be done by employing more authorized retailers.
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C ONCLUSION
Cement is still a selling product in country like India. It is the company who has to find
the market and go the prospect rather then the client directly approaching to the company.
The opening up of the sector has also resulted in stiff competition as many private
companies are entering in. so it becomes very important to be the best out of the market . this ,
the company can achieve by offering value added services to the customers by giving them
maximum benefits. Company is trying to given more assured returns to the investors.
Mostly products are based on the NAV or they unit Linked so awareness, knowledge
and brand image of the will be product the first priority for the company.
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APPENDIX:
Q.1 What is the overall performance and operations of J. K. cements ?
Q.2 What are the under going project in progress ?
Q.3 What is the performance measurement and review of J. K. cement in FY 2011 as
compared to the FY 2010 ?
Q.4 What is the outlook of the Cement Industry with respect to J.K. Cement ?
Q.5 What is the Industry structure and development perspective with respect to gray
cement & white cement ?
Q.6 What is the segment wise and product wise performance of J.K. Cement ?
Q.7 How Internet Control system and adequacy helps in further strengthening the
overall performance of the company ?
Q.8 How far Human resources measurement help in J.K. Cement Performance ?
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Q.9 What are the Significant Accounting policies being adopted in J.K. Cement ?
BIBLIOGRAPHY:
BOOKS
Marketing management Kotler Philip
Principles of marketing Kotler Philip
Business research method Cooper and Schindler
Marketing research Beri G .C.
Statistics Gupta S.C
Cement journal of CMA
NEWSPAPERS
Business Line .
Economic Times.
WEBSITES
www.google.com
www.jkcement.org.in
Jitendra [email protected]
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