Page 1

An Overview on the Ready Mix Concrete (RMC) Market-

Research Process and Methodology

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Satge 1 Satge 2 Satge 3 Satge 4 Satge 5 Satge 6 Satge 7

Research Process

Preliminary Research

Scope & Objectives

Establishing key Metrices

Defining overall sample size

Resource allocations

Secondary research Activities

Validation of stage 1,2,3 and primary research activities

Review activities

Brief Presentation

Final conclusions/Recommendations

Execution Methodology

Understand the subject and define the scope & objectives

To find out market potential present in RMC segment and the competitive analysis of

major players of this segment

Objectives

1. Understand the market

2. Understand the different grades of product and its usage

3. Customer Segmentation and purchasing behavior

4. Analyzing the consumers market in specified region in terms of product awareness,

proposed development in vicinity areas etc.

5. Ball park estimation of market potential in given product category for next decade

6. Map the prevailing players profile with respect to plant location, sales, distribution

method, market share etc.

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Stage 1

Ready Mix Concrete (RMC)

Ready-mix concrete (RMC) is a ready-to-use material, with predetermined mixture of cement, sand,

aggregates and water. RMC is a type of concrete manufactured in a factory according to a set recipe or

as per specifications of the customer, at a centrally located batching plant.

Types of RMC

There are three types of RMC depending upon the mixing of the various ingredients as given below :

a) Transit mixed concrete

b) Shrink mixed concrete

c) Central mixed concrete

a) Transit Mixed Concrete

It is also called dry batched concrete because all the basic ingredients including water are charged directly

into the truck mixer. The mixer drum is revolved fast at charging speed during the loading of the material

and after that it continues rotating at a normal agitating speed

b) Shrink Mixed Concrete

The concrete is partially mixed in the plant mixer and then balance mixing is done in the truck mounted

drum mixer during transit time. The amount of mixing in transit

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Stage 1

Overview and Definition

96mixer depends upon the extent of mixing done in the central mixing plant. Tests should be conducted

to establish the requirement of mixing in the drum mixer.

c) Central Mixed Concrete

It is also called ‘central batching plant’ where the concrete is thoroughly mixed before loading into the

truck mixer. Sometimes the plant is also referred as ‘wet-batch or ‘pre-mix plants’.

RMC Benefits

Easier, faster and better quality construction.

Time saving and reduced wastage of raw material

Elimination of storage space for basic materials like aggregates , sand etc at site

Elimination of procurement /hiring of plant and machinery

Labour associated with production of concrete is eliminated.

Organisation at site is more streamlined.

RMC INDUSTR : INDIA : HIGHLIGHTS

• Estimated Annual Concrete Consumption in the country: 165 million cubic metre ( Hindu , June 4 2005)

• India spends 9% of its GDP on infrastructure compared to China which spends close to 30%

• Per capita consumption of cement in India in 2010: 148 kg

• Global Average per capita consumption of cement: 260 kg

• Country is dotted with 140 to 150 commercial RMC units

• Employment to 30000-35000 people directly and around 50000-60000 people indirectly

• RMC industry pegged at 2000-2500 crore growing at around 25-35% over the last 5 years.

• RMC segment churns out an average 28000-30000 cubic metres of concrete every day.

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• L& T, Grasim , ACC , RMC India are major players with pan India presence and market share of 75-80% .

• Schwing Stettar India (SSI) is a 100% subsidiary of Schwing Group of Companies

manufacturing equipment for concrete preparation , transportation , placement and for recycling

concrete.

• Cement consumed by RMC units is currently around 8-10% of the total cement produced in India while

the same is around 60-65% in developed countries( Source : Economy & Business , March 26 , 2006).

Define the research problemSpecify the information required to help react the management problem

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Stage 2

Setting the Research Process

Research design process Categories of research

is concerned with discovering the general nature of the problem & the variables relate to it. It is characterised by a high degree of flexibility and it tends to rely on secondary data, convenience or judgement samples

Exploratory Research

is focused on the accurate description of the variables in the problem model. Consumer profile, market potential studies, sales analysis are examples of this.

Descriptive Research

attempts to specify the nature of the functional relationship two or more variables in the problem model

Casual Research

Estimate the value of the information to be provided by the research

Using either judgement or the expected value approach estimate the value of information with varying levels of accuracy

Determine the data collection methodDetermine whether secondary data, a survey or experimentation will produce

the required data and choose the form of the selected method(s) to use

Select the measurement techniquesDetermine whether and how to use questionnaire attitudes scales,

observation etc.

Select the sampleDetermine who and how many respondents or objects to measure

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This is Exploratory and descriptive type of research

Stage 2

Setting the Research Process-Sampling Techniques & Considerations

Select the analytical approach

Determine the appropriate means of analyzing the data to provide the required information

Evaluate the ethics of the research

Review all the aspect of the research

Specify the time and financial costFor each research approach, estimate time & financial cost and compare to

actual value of information & time

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Stage 3

Secondary Research

In depth secondary research using appropriate database and other secondary sources

•Online journals

•Industrial magazines, texts

•Internal database

•Previous TBT findings

Primary interviews with industry experts, existing players , government officials, Architect , consultant and end users.

•Contact list development

•Discussion guide /Questionnaire

•Discussion data collations & analysis

•Management review of findings & draft report

Also Note: The Methodology will also include several follow-up calls, profiles exchanges, emails, and the

documentation as when required at various stages

Sample Contact List:

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Stage 3

Secondary Research-Preview of contact list and sample questionnaire

Company Name

Location/Address

Contact no.

Contact Person

Designation

Contact no.

Email id

Web address

ACC concrete Ltd

Mumbai

XXXX XXXX XXXX XXXX XXXX XXXX

Sample Questionnaire

Questionnaire will vary different group of respondents

Analysis, Findings

Y 07-08 Y 08-09 Y 09-10 Y 11-12

Demand of cement NaN 100 200 300 400

Demand of RMC NaN 17 45 68 112

Potential Of RMC NaN 24 65 93 174

25

75

125

175

225

275

325

375

425

Demand estimation Actual vs PotentialVo

lum

e

Parameter Details Y 07-08 Y 08-09 Y 09-10 Y 11-12

Demand of cement XXX XXX XXX XXX

Output of Cement XXX XXX XXX XXX

Demand of RMC XXX XXX XXX XXX

Output of Concrete XXX XXX XXX XXX

Net Requirement XXX XXX XXX XXX

Volume Potential XXX XXX XXX XXX

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The parameters and models will be finalized after a mutual discussion

Stage 4, 5, 6

Primary Research

Mid level marketing manager, project manager, production manager on the

topic of Cement Industry & RMC Industry will be interviewed by TBT.

•Participate in their company’s view on the overall construction industry-growth,

Analysis the customer requirements

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Mid level marketing manager, project manager, production manager on the

topic of Cement Industry & RMC Industry will be interviewed by TBT.

•Participate in their company’s view on the overall construction industry-growth,

Analysis the customer requirements

Stage 7

•Define/ re-define product /service based on the concepts ideas on the voice of customer analysis

•Form an Internal & External Cross Functional Team (CFT)

•Product Matrix-Pricing Matrix-Network/Service Mapping-Distribution

•Existing players profile mapping

Cities profiling in terms of demand

.

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•Define/ re-define product /service based on the concepts ideas on the voice of customer analysis

•Form an Internal & External Cross Functional Team (CFT)

•Product Matrix-Pricing Matrix-Network/Service Mapping-Distribution

•Existing players profile mapping

Cities profiling in terms of demand

Each stage of the project will be executed in detail based on specified requirements from the Client after a mutual discussion.

THANK YOU