Ambuja Cement Limited



A

PROJECT

REPORT

ON  MARKET SURVEY OF CEMENT COMPANIES IN ROPAR AND KURALI CITIES

SPECIAL THANKS To Prof. Monika Thakur because this project report could not have been completed without her guidance and my industrial Guide Mr. Sanjeev Nanda of Ambuja Cement Limited Chandigarh. I am also grateful to Prof. Ms. SHIVALI DHINGRA, Head of the Institute, Amity Global Business School, Chandigarh, for permitting me to undertake this study. 

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AMBUJA CEMENT Ltd . Introduction

An

The Company was Incorporated on 20th

October 1981 as Ambuja Cements Pvt. Ltd. The Company was converted into a public limited company on19th March 1983 and its name was changed to Gujarat Ambuja Cements Ltd. on 19th May 1983. Today, Ambuja is the 3 rd largest cement company in India, with an annual plant capacity of 16 million tonnes including Ambuja Cement Eastern Ltd. and revenue in excess of Rs.3298 crores

First plant set up in record time When Ambuja set up its first plant in 1986,

the accepted time period for installing a plant was 3 years. Ambuja, did it in less than 2 years. And with a significantly lower capital expenditure

Branding a commodity Cement is a commodity, sold largely on

price. Ambuja Cement was the first company to create a brand out of cement and command a premium.

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Expor ts Ambuja Cement exports almost 17% of its

production in a very competitive international environment. For the last ten years, Ambuja Cement remains India’s highest exporter of cement. This has been possible for two reasons – One, the quality of cement matches the best in the world. Two, the dedicated bulk cement transportation capability at our Gujarat plant. 

Milestones Building of a cement plant in record 13

months. 2.8 kilometer conveyor belt running through three hills was constructed in just 9 months. Introduced a completely new system of transporting cement in India – the bulk cement transportation by sea. Introduced complete blast free limestone mining by using the surface miner in limestone mining for the first time in India. Created water reservoirs in used up mines and raised the water table in arid areas.  Plants have achieved the lowest pollution

Recognition  National Award for commitment to quality by the

Prime Minister of India.  National Award for outstanding pollution control by the Prime Minister of India.  Eco-Gold Star by TERI  Best Export Award by CAPEXIL.  Award for Corporate Social Responsibility by Business World – FICCI  International AwardFor Rural Development by Asian Management Institute (AIM)  ISO 9002 Quality Certification.  ISO 14000 Certification for environmental systems. 

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

the best in the world. The pollution levels at all its cement plants are lower than the rigorous Swiss standards of 100 mg/NM3.  The only cement company to be awarded with the National Quality Award.  First cement company to first to receive the ISO 9002 quality certification.  Received ISO 14000 Certification for environmental systems.  India's largest exporter of cement.  Received Best Award for highest exports by CAPEXIL.  First company to introduce the concept of bulk cement movement by sea in India. 

PRODUCT DETAILS Ambuja Cement is the flagship brand of

Ambuja. A unique outcome of international expertise, this super performing cement has been developed taking into consideration the weather conditions in India and practices of home building. Ambuja Cement is available in Portland Slag Cement (PSC) and Portland Pozzalona Cement (PPC) variants.

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INTRODUCTION TO THE PROJECT Project is titled as “THE MARKET SURVEY OF

VARIOUS CEMENT COMPANIES IN ROPAR AND KURALI CITIES” of Distt. Ropar in Punjab.

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Objective :This project is about the study of various

market share occupied by different cement companies like ACC, Ambuja cement, Birla cement, Shree cement, Jaypee cement, JK cement, Ultratech, And others. Project is also about the study of different pricing pattern of different cement companies and their comparative study. This project also include the difference between the billing price and selling price of different cement companies. 

RESEARCH METHODOLOGY RESEARCH DESIGN - EXPLORATORY RESEARCH DESIGN Area of Study The study has been carried out in the Ropar and Kurali cities of Punjab. Time Schedule  The study has been carried out in the period between 15th June 2009 to 015th July 2009. 

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DATA COLLECTION:   The data used for the study is of Primary nature. The sources for the data have been: Direct contact with the retailers and dealers of cement in both cities. Other information required for the study has been gained from the project guide. 

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ANALYSIS AND INTERPPRETATION :Dealer’s preference for the storage of

cement brand in Ropar City :

Sr. No.

Company

No. of Dealers/RTL 5

Percentage

1.

Ambuja

2.

ACC

10

80%

3.

Shree

4.

Jaypee

-

5.

Ultratech

-

-

20%

Gr aphical r epr esentation of Cement Companies in Ropar city :---

ANALYSIS AND INTERPPRETATION:Obviously, maximum dealers, which are

about 80% , come with ACC and rest 20% are occupied by Ambuja since there are only these two are the major players in the market. Rest companies are trying to occupy their position in the market.

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PRICING PATTERN : ROPAR S r. n o .

B ra n d N am e

P ro d u ct

1.

A m b u ja

PPC

2.

ACC

PPC

3.

S h re e

B illin g P rice ( Rs ./ Bag ) 2 4 5 -2 4 8 R s.

W h o le sa l e P rice ( Rs ./ Bag ) 2 4 8 -2 5 2 R s.

2 4 5 -2 4 8 2 4 8 -2 5 2 R s. R s. -

-

-

R e ta ile r P rice ( Rs ./ Bag ) 2 5 0 -2 5 5 R s. 2 5 0 -2 5 5 R s. -

ANALYSIS AND INTERPPRETATION :Dealer’s preference for the storage of cement brand in Kurali City Sr. No. Company No. of Dealers/RTLPercentage :



1.

Ambuja

1

30%

2.

ACC

5

46%

3.

Ultratech

4.

Birla

5.

Shree

1

6.

JK

1

1

11% 2

.5% 11% 1.5%

Graphical representation of Cement Companies in Kurali city

ANALYSIS AND INTERPPRETATION :Maximum of market share are occupied by ACC almost 46% and than Ambuja about 30%. Rest of market share are occupied by Ultratech, JK, Shree and Birla. 

WHOLESALE PRICE/RETAIL PRICE ANALYSIS FOR KURALI Sr. no.

Brand Name

Product

Billing Price (Rs./Bag)

1.

Ambuja

PPC

2.

ACC

PPC

3.

Ultratech

PPC

252 Rs.

4.

Birla

PPC

244 Rs.

-

250 Rs.

5.

Shree

PPC

248 Rs.

-

252 Rs.

6.

JK

PPC

240 Rs.

_

244 Rs.

249 Rs.

249-252 Rs.

Wholesale Price (Rs./Bag)

Retailer Price (Rs./Bag)

249 Rs.

250 Rs.

247-252 Rs.

250-255 Rs.

245 Rs.

250 Rs.

FINDINGS REASONS STATED BY RETAILER FOR BRAND PREFERENCE :AMBUJA Customers preference Good cement, plastering work is good Good name in market Better packaging 

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ACC People ask for ACC Service is good Very superior quality cement as compared to others. They have same price prevailing for wholesale at dealers/stockiest retailers end. 

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GRASIM(Birla plus) Price is suitable as per consumer pocket Rate & profit    SHREE Price is suitable as per consumer pocket Rate & profit 

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PROBLEM FACED BY: STOCKIEST :None of the stockiest had any complains about any brands, in regards to the price, transport, service etc. Stockiest are satisfied with the companies service. RETAILERS REGRETS (Ambuja) The stockiest occasionally inform about the price change in market. Price should be stabilized in market. 

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LIMITATION OF THE STUDY :Lack of cooperation of retailers in giving

interview . It was found that dealers showed more inclination towards the brands which gives them more margin when compared to others. It was experienced that during the survey it was difficult to convince or make the retailers understand the importance of the project. Retailers and dealers thought that it was unwise for them to give the details of their business as they feared competitors would

SUGGESTIONS A very exhaustive study has been made, keep in essence of the objective of the project. With the efforts put on the project a detailed analysis was conducted and result were derived, based on the results and market response few suggestions are discussed below :-    A price fluctuation creates problems for retailers as the commitments of the price customers…  At time it has been seen that the delivery commitments on the side of the company is not prompt, this creates a bad name and again business is lost.  On interviewing Dealers/retailers the most important thing they said was about the price flexibility to play in the market 

CONCLUSION  Although Ambuja Cement Ltd. Has a good

name in the market and has second highest market share in both the cities that is Ropar and Kurali but difference between first and second position is quite large that is 40-60%. The main reason for the difference the weak marketing strategy of the company and price instability of the company. So to increase the market share of the company in the market and to overtake ACC the company has to stabilize its price and have to come with a strong marketing strategy.  The market survey undertaken shows that effective marketing efforts play a vital role in creating the goodwill for the brand. The distribution channel of cement industry must be well designed and made effective this ensures timely availability of cement

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THANKU

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