Snapshot on the RMC market in India

8/7/2019 Snapshot on the RMC market in India

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Western Auto RACE Pvt Ltd.,

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

Research Process & Methodology

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Disclaimer- We assure that the views expressed in this document accurately reflect our views based on primary and secondary research with all stakeholders. We take no responsibility for any incorrect information supplied to us by the

stakeholders .No part of this document reflecting confidential may be given, lent, resold, or disclosed to non-customers without Written permission. Furthermore, no part may be reproduced, stored in a retrieval system, or transmitted in

any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the permission of the publisher.


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Validation

Research-Primaryresearch

Awardannouncement

by BPG

Preliminary

Research-Scope &

objectives

AwardPresentation

PressRelease

Movers &Shakers

Research Process

Draft for phase 1presentation-Brainstorming

Stage 1

PreliminaryResearch

Scope &Objectives

Stage 2

EstablishingKey Metrics

Definingoverall samplesize

Resourceallocations(research,marketingdesign

Stage 3

Secondaryresearchactivities

Stage 4 Stage 5 Stage 6 Stage 7 First cutreview-Analysis

reporting &presentation

Finalconclusion/recommendations/Key

takeawaysforstakeholders

ExecutionMethodologyfor effective

implementation

Validationof stage1,2,3 &primaryresearchactivities

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Understanding of the subject matter & defining the scope & objective

To understand the business of our customer who transport materials related to said domain theiroperating challenges, their need for products & service solutions which will enable them to improvetheir business and also market position for Mahindra Navistar.

Set objectives for learning like-

1. Business dynamics2. Process/value chain3. Present transport methodology, products & services4. Buying pattern

5. Alternative transport solutions6. Fleet management

7. Perceptions/ Gap8. Operating conditions/problems9. Performance & safety

10. Regulations

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Stage 1


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Western Auto RACE Pvt Ltd., Confidential 4

To understand the Concrete market in India- overview, market size, growth rates,market drivers & challenges

To provide the cost economics of operating of transportation

To provide an overview on the vehicles demand/projections & growth rates

Improving Acceptance of Mahindra Navistar vehicles in RMC application.

To generate revenue for the company.

Stage 1Scope & Objectives


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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 as per specifications of thecustomer, at a centrally located batching plant. Concrete is the most versatile mouldable construction materialwhere intricate shapes can be achieved. It bears excellent fire and weather resistant properties.

Types of RMCM20, M30, M40 Grades of concrete indicates compressive strength of concrete in Newtons for one mm2 areawhich is called the characteristic strength of concrete after 28 days. M20 mean 20 N/mm2 similarly M30 is 30N/mm2.

Concrete is Made by using cement, sand and blue metal in different ratios.M 15 :1:2:4 ratio .M 20 :1:1.5:3 ratio .

Concrete can be made in two ways :

1. By Batching Plant : RMC (Ready mix concrete)2. By Manually using Portable Concrete Mixer

BatchingMeasurement of various ingredients of concrete like sand, metal and cement for each batch of concrete perdesign is called batching. Volume batching and weigh batching are the two types of batching in vogue

Stage 1Overview & Definitions


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Stage 1- Cont..

Cement being a vital component in RMC process is only 11.0%

India is the second largest cement producer in the world with205 million tonne cement capacity.

The consumption of cement is the highest in South.

RMC assures its customers numerous benefits: Uniform, consistent and assured quality of concrete Flexibility in concrete design mixes Easier addition of admixtures Faster and speedier construction Reduced inventories, material handling and storage of raw materials at sites Savings in labour requirements, labour costs and supervision of labour Reduced wastage of materials


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Stage 2Setting the Research Process

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

estimate value of the information & time constraints imposed by the problem

Evaluate the ethics of the research

Review all the aspect of the research to be certain that it is ethically sound

Select the analytical approachDetermine the appropriate means of analyzing the data to provide the required

information

Select the sample

Determine who and how many respondents or objects to measure

Select the measurement techniqueDetermine whether and how to use questionnaire attitudes scales, observation and or

projective technique

Select 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

Estimate the value of the information to be provided by the researchUsing either judgment or the expected value approach estimate the value of information

with varying levels of accuracy

Define the research problem

Specify the information required to help react to the managment problem is concerned with discovering the generalnature of the problem & the variables that

relate to it. It is characterized by a highdegree of flexibility, and it tends to rely onsecondary data, convenience or judgementsamples,surveys, caseanalysis.

Exploratory research

is focused on the accurate description of thevariables in the problem model. Consumerprofile studies market-potential studiesproduct usage studies, sale analysis, pricebenchmarking are examples of descriptiveresearch

Descriptive research

attempts to specify the nature of thefunctional relationship betwen two or morevariablesin the problem model

Casual Research

Research Design Process Categories of Research

This research is Exploratory

& Descriptive


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Stage 2Setting the Research Process- Sampling Techniques &

Considerations

Random sampling

Systematic sampling

Stratified samples

Quota sampling

Cluster sampling

Area sampling

Primary Considerations in Sampling Population- determining who can provide the required information Sample frame- develop a list of population members Sampling Unit- determine the basis for drawing the sample (individuals, households, city blocks etc) Sampling Method-determine how the sample will be selected

I.Probability- members are selected by chance & there is a known chance of each unit being selected.II.Nonprobability- members are selected on the basis of convenience or judgment or by some other means rather chance.

Sample Size- determine how many population members are to be included in the sample. Sample Plan- develop a method for selecting & contracting the sample members Execution- carry out the sampling plan


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Est. Key Metrics- Sample Metrics

To grow from x% to y% in a specified time frame. To achieve the desired market share in the segment (product, market, service

specific) To measure customer satisfaction index To achieve desired volumes in the application, market, segment etc New product development Penetrate new geographic region JV or M&A activity To achieve the desired cost economics

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Stage 2

Metrics can be evolved on detailed discussions with Mahindra Navistar team


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Western Auto RACE Pvt Ltd., 10

Stage 3Research Base- Secondary

In depth secondary research using appropriate database and other secondary sources

Online journals Industrial magazines, texts Internal database Articles

Desk search

Primary interviews with industry experts, competitors 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 whenrequired at various stages

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Metrics can be both qualitative & quantitative

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A mixture of telephonic based& face-toFacesurvey of key decision makers onthetopic of Mining IndustrywasIdentifiedby RACE. A total of 55respondents are highlighted

Stage 2

The above stakeholders, geographic coverage can be customized based on the definitions. With regards to(Small), M (Medium) & L (Large) the parameters will be set based on revenues, product line etc.

Small Medium Large Small Medium Large Small Medium Large Small Medium Large

Mgmt 1 1 1 1 1Operating 2 2 1 1Field 2 2 1 1Mgmt 1 1 2 1 1 1 1 1 1Operating 1 1 1Field 1 1Steel 1 1 2 1Cement 1 1 1 1 1Construction 1 1 1 1Mining 1 1 1 1 1 1OtherMgmt 1 1 1OperatingField 1 1Mgmt 1 1 1 1Sales 1 1 1 1

Experts/Govt Bodies 1 1 1Others (drivers,loaders,labor) 3 4 3 2

Total 4 5 18 5 3 15 1 2 11 3 5 8

East West

Stakeholders

Truck OEM's

Financiers

End-user Industries

Body Builders

Transporters

North South

Contact Levels

ApproximateProjected

sample size80


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CompanyName Web Address

Location/Address

ContactName Title

ContactPhone#/Fax

ContactEmail

ACC Concreteltd

Mumbai022-40772600

Godrej & BoyceMfg. Co. Ltd.

Mumbai

022-67962001

IJM ConcreteProducts PvtLtd

Blre80-

41226740

India CementsLtd

Chennai

044-28592476

RMC Readymix(I) Pvt Ltd

Mumbai

022-26547000

Stage-3Secondary Research- Templates for Purview

Contact List & Discussion Guide

Commercial Vehicle Manufacturer in the Construction Industry-Questionnaire

Date:

Respondents name:

Position: Full Address:

Telephone:

Fax:

E-mail:

Other Contact Names:

Objective : to capture expert views on key industry issues & trends on the Construction Industry

1)

Could you provide us with a brief description about the current line of operations in the Construction

Industry (with respect to load type-

2)

Can you also elaborate on the kind of terrain (rough, smooth, deep surface etc) & gradient (degree of operation) is the current operation being carried out?

3)

What is the range of vehicles used (tippers, trailers etc) being used in the operation based on capacity(smaller, medium, heavy range)?

4)

What is the average number trips & load capacity carried out per month?

5)

Do any geographic regions present particular advantages or opportunities?

6)

Is product development reactive to end-user feedback and demand?

7)

How do you manage your sourcing needs with respect to components, spare parts etc?

8)

Are local players more prominent in this market than the major OEM?

9)

Are there any service agreements in place if so? How do you organize your service network (on call/set up near the location)

10)

What is the percentage break-out of OEM direct sales, vs. indirect sales?

11)

Are the products sold to public sector / private sector end-users through public tender and are theyreimbursed? What is the reimbursement scenario? try to prompt with country specific trends youalready know

12)

What are the key factors that contribute to achieving competitive advantage in this market (companysize, marketing, R&D, time-to-market, differentiation, cost advantage, core competency of a particularplayer in a particular category or product, innovation, entry barriers, M&As, strategic alliances, etc)

Questionnaires will vary for different stake holder within the

Industry-(End-user, Marketing, Product, Senior mgmt etc)


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PARTICULARS SITE-MIXEDCONCRETE READYMIXED CONCRETERaw Material Near Mixer at site At Batching plantWeighing Manual ComputerisedMoisture Control Approximate Lab ControlW/C ratio Manual(approx.) ComputerisedDosing of asmixture Manual(approx.) ComputerisedMixing Tilting mixer Non tilting single shaf t mixerDischarge Platform Transit mixer/pumpRate 3 Cu.m/hr 30 Cu.m/hrDegree of Control fair excellentYield variable consistentTesting of fresh concrete once in 25 batches every batchSelection/Sourcing Client/consultant skilled RMC personnelTesting Client/consultant skilled RMC personnelstorage multi locational single pointstorage space large limited and compactrequirementDelivery Manual Transit MixerMode Manual/Hoist/Crane Concrete pumpRate 1.5 Cu.m./hr 30 Cu.m./hr.

Production

Quality

Placing

RawMaterials

Stage 3- Difference Between Site-Mixed Concrete &Ready Mixed Concrete


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Analysis, Findings, Data

572

950

1457

3667 3740

4224

4752

88 106 127

3667

4400

5280

6336

0

1000

2000

3000

4000

5000

6000

7000

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

volume

year

8x4 6x4 TT Volume Potential

12222 vehicles are currently in operation as on

Y07 08

c

Details Y 07 -08 Y 08 -09 Y 09 10 Y 10 -11 Y 11 -12Output -Concrete / day cum 220000 264000 316800 380160 456192Concrete carried / vehicle /day 18 18 18 18 18

Cum Vehicles required 12222 14667 17600 21120 25344Net Requirement of Vehicles /year 0 2444 2933 3520 4224Expected Replacement of old vehicles @ 10 % 1222 1467 1760 2112Volume Potential 3667 4400 5280 6336

8x4 572 950 14576x4 3667 3740 4224 4752TT 88 106 127


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Stage 4, 5, 6Research Base-Primary

Key decision makers on the topic of Construction Industry & Equipmentmanufacturers were interviewed by RACE.

Participate in their companys view on the overall construction industry -growth, trends, investments, locations, competitive trends, drivers,challenges, market size , recommendations, forecast, forward lookingstatements etc. Several equipment manufactures on the price trends,

technology, distribution, sales trends, customer buying behavior. Etc.

The following professionals within organizations were surveyed: Management team Operating team (commercial & technical) Field Team Other include- drivers, loaders, labor etc

Analysis the customer requirements

Qualitative & quantitative analysis

Brainstorm & develop concepts &ideas

Specific outputs for internalstakeholders

Impact of Concepts/Issues/Comments onStakeholders (color highlights in the grids)


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Stage 7

Define/ re-define product /service based on the concepts ideas on the voice of customeranalysis

Form an Internal & External Cross Functional Team (CFT)

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

Organizing Work Shops

The above are a few execution methodologies applied for implementation strategy


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Each stage of the project can be executed in detail based on specified requirements fromthe Client.

Documents

Snapshot on the RMC market in India