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A PROJECT REPORT
ON
How to promote usage of Wall Care Putty in repainting segment in Jaipur City
45 Days Summer Training Project withBirla white Cement
Submitted by:
Parveesh PearlMBA III Sem.
Department ofManagement Studies(MNIT, JAIPUR)
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CERTIFICATE
(Summer Project/Training during June 11th
to August 24th
2010)
Certified that Mr. /Ms. Parveesh Pearl , student ofMaster of Business Administration, III Semester has
submitted his report on How to promote usage of Wall Care Putty in repainting segment in
Jaipur City after successfully completing the summer practical training at Grasim Indusrties Limited
(White Cement Devision), Jaipur from June 11th
to August 24th
2010, towards fulfillment of the syllabus
requirement prescribed byMalviya National Institute of Technology, Jaipur forMBA III semester Paper.
Dr. A. BHARADWAJ
(Head ofMBA Department)
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TO WHOM SO EVER IT MAY CONCERN
This is to certify that Mr./Ms. Parveesh Pearl (MBA III Sem)Malviya National Institute of Technology,
Jaipur has joined our esteemedB
irla white Cement as a (M
arketing trainee) . He has undergone a Project
Training in the guidance ofMr. Chetan Saran (Marketing state head-Rajasthan) from 11th
June to 24th
August
2010. He has done well and completed all the criteria of a Project Training and submitted his project on time
He was well behaved and showed complete professionalism during the Project Training.
We wish for his great and successful career.
(Authorised Signature)
(Marketing Head-Rajasthan)
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ACKNOWLEDGEMENT
Words are indeed inadequate to convey my deep sense of gratitude to all those who have helped me
completing this summer project to the best of my ability. Being a part of this project has certainly been
unique and a very productive experience on my part.
I am really thankful to Mr.Chetan Saran, (Marketing State Head- Rajasthan) for making all kinds
arrangements to carry the project successfully and for guiding and helping me to solve all kinds of quarri
regarding the project work. His systematic way of working and incomparable guidance has inspired the pace
the project to a great extent.
I would also like to thank my mentor and project coordinator, Shri C.D.Mehta, (Sr.Manager- Marketing
Mr.Neeraj Pareek(Sr.Manager-Marketing) and Mr. Yogesh(Jr.Manager-Marketig) for assigning me
project of such a great learning experience and acquainting me with real life project market research.
I am very grateful to Mr. A.Bharadwaj (Head of MBA Department) ofM.N.I.T, Jaipur. Who has given m
the opportunity to do this project in the Birla Corporation Ltd. and very thankful to all lecturers
M.N.I.T., Jaipur for their useful guidance and advise.
Last but not least I would like to thank all the employees ofBirla Corporation Ltd., my Parent & m
friends, who have directly or indirectly helped me with their moral support for the completion of my project.
(ParveeshPearl)
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Table of Contents
Preface
1. Executive summary2. Industry profile3. Company profile4. Objectives, Scopeand Purpose5. Research Methodology6. Data & Analysis7. Conclusion
8. Recommendations9. Limitations10. Bibliography
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EXECUTIVE SUMMARY
Founded in 1919 by the visionary industrialist, Shri G.D. Birla, at the outskirts of the then Kolkata. Bir
Manufacturing Company Ltd was the first company of Birla industrial conglomerate. Under the stewardshof his nephew, Shri M.P.Birla, the company diversified and expanded its business interest beyond cemen jute, PVC goods, steel casting and auto trims. Birla Corporation limited is the flagship company
M.P.Birla group. It has variety in its basket. The core business of Birla Corporation limited is cemengenerating 93% of the revenue for the company, 6% jute and 1% from other sectors.
The project entitled Working Capital Management and its Appraisal in BCL deals in this segment. T
term of study was kept limited to make the title true. The purpose of the report is to get the in depunderstanding of the process of working capital management. With the growing Indian economy and t
government policies for infrastructure the demand for cement is increasing and seeing this as an opportunity under taking many new projects for expansion of the production which are under implementation f
increasing the capacity of the plants. Working capital has been analyzed in two ways overall study of tworking capital ofBirla Corporation Ltd and secondly, plant-wise working capital of Birla Corporatio
since the company has seven plants in different region and each plant has its own working capital.
Borrowings are an important ingredient of funding a business entity. The lenders must feel comfortable witheir clients and Birla Corporation enjoys this position among their lenders. Borrowing is done for workin
capital requirement i.e., to meet the day to day requirement for smooth functioning of the production, and terloans for projects of capacity expansion. Major portion of the borrowing is done from banks at better rate
interest.
The performance of the cement division of the company during the year was satisfactory. The production cement during the year was 5.28 million tones, compared to production of5.26 million tones; the highe
ever.The Satna unit produced 20.20 lacks tones of clinker during the year. The cement production at Satna anRaebareli was lower at 21.55 lacs tones as compared to 21.87 lack tones during the previous year. The ceme
dispatches of Satna and Raebareli units where 21.44 lack tones as compared to 21.89 lack tones during layear.
The production of Portland Pozzolana cement (PPC) at Satna, however, recorded on all time high level
11.77 lack tones as against the previous best of 11.61 lack tones. Jute division of the company produc37990MT of jute goods during the year as compared to 29289MT in the previous year. During the year t
company has total 7 plants with annual capacity of 10 million tones.
The Company has posted yet another impressive for the 2007-08 results, which has surpassed all respectivprevious levels. It has shown substantial growth in turnover, cash profit, profit before tax and profit after ta
The total turnover of company has registered a growth of 11.27% whereas operating profits for the year whehigher by 18.03% mainly on account of increase in the volume of blended cement in the overall cement sale
higher realisation and effective cost control measures taken by the company.The profit before tax was up by 19.37% at Rs.551.18 crores as against Rs.461.74 crores in the previous ye
The profit after tax is 393.58 crores as against Rs. 326.23 crores in the previous year. EPS was 51.11 as again47.51 in the previous year.
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The cash earnings of the company improved substantially to Rs.501.39 crores as against Rs.178.25 crores
the last financial year. With increase in capacity on account of expansion projects being undertaken by tcompany, it is expected that the Company would be in a position to maintain the growth in future year
Company has recommended a dividend of Rs 4.00 per share (40%) on 7, 70, 05,347 ordinary share compar
3.50 per share (3
5%) last year.
The objective of this project work is to focus on the working capital of the Birla Corporation and explori
its potential in the company. The project contain the basic postulates of working capital, procedure of analysof working capital, ratio being used to define the working capital and the impact of working capital in th
company in case of excess or inadequacy. Also, the project contains analysis of estimation of working capitrequirement and the procedure to estimate working capital requirement in manufacturing and trading concer
and from the data available it can be concluded that it holds a very strong position in the market.
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Objectives of the Summer Training
y To supplement the theoretical knowledge, with an introductory practical / hands on exposure to a reworld management function and / or situation.
y To get an in-depth practical knowledge in the area of specialization in which the students is foray into
y To capture and gain knowledge about the working capital and its management at Birla Corporation Ltthrough real case based studies.
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BIRLA CORPORATION LIMITED PROFILE
Company Profile - Birla Corporation Ltd.
Industry Cement - Major BSE Code 500335 Face Value Rs. 10.00
Chairman Mr. Rajendra S Lodha NSE Code BIRLACORPN Market Lot 1
Group Birlas (MP) Group ISINNo INE340A01012 Bookclosure 30/07/08
Estabilshment: Founded in 1919 by the visionary industrialist shri G.D.Birla, at toutskirts of the Kolkata. Birla jute Manufacturing Company Ltd. wthe first company of the Birla Conglomerate. Under the stewardsh
of his nephew shri M.P.Birla, the company diversified and expandits business intrest beyond jute, to encompass cement, PVC flo
covering and auto trims. The company crossed the Rs 1997 cro
turnover mark in the year 2007-2008 and the name was changed birla corporation Limited in 1998.Under the Chairmanship ofMPriyamvada Birla, Birla Corporation crossed the net worth of 100
crore mark. Its export in 2002-2003 stood at Rs. 48.19 crore.ShareholdingPattern: Promoters and Person in control in concert: 62.90%,
Mutual Funds and UTI: 8.25%, Banks, Financial Institution
& Insurance Companies: 4.30%, FIIs: 6.79%, PrivateCorporate Bodies: 6.11%, Indian Public: 10.69%,
NRIs & OCBs: 0.69%
Head Quarter: Kolkata, India
Companies in the Group
Parent Company : Birla Corporatin Limited
Associate Companies : Universal Cables Limited: Vindhya Telelinks Limited
: Birla Ericssions Optical Limited: Universal-ABB Power Cabels Limited
: Hindustan Gum & Chemicals Limited
Subsidiary Company : Birla Jute Supply Company Limited: Talavadi Cements Limited: Lok Cements Limited
: Budge Budge Floor Covering Limited
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Manufacturing Units : 7 Nos.
Regional Offices : Kolkata
Marketing : All India Sales & Disribution Network
Services : All India Service Network
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History of Company:
YEAR EVENTS 1919:- The Company was incorporated at Calcutta. The main object of the company is Manufacture Jute goods, calcium carbide, oxygen and acetylene gases, synthetic and viscose yarn and cemen
- The Cement division comprises Satna Cement works and Birla Vikas Cement (new plant) at Satna (M.P
the Birla Cement Works at Chittorgarh (Rajasthan) and Durgapur Cement Works at Durgapur (W. Bengal).
- The Jute Mills division comprises of Birla Jute Mill at Birlapur, Bally Jute Mills (Bally-1) at Bally an
Soorah JuteMills (Bally-2) at Narkeldanga, all in W. Bengal.
- The staple fibre division is known as "Birla Synthetics" and the calcium carbide division is known as "Bir
Carbide & Gases".
1964:-The Oxygen & Acetylene Gas Unit was commissioned in August. The Company also entered into
agreement with Indian Oxygen, Calcutta, for exlusive sale of its products on principal to principal basis.
1966:-In August, 3,98,906 Bonus Equity shares issued in prop. 1:4.
1967:-7.86% II Pref. shares redeemed on 30th Sept., 75,000 III 9.3% Pref. shares issued at par.
1969:- The Company entered into an agreement with Hindustan Steel, Ltd. for the purchase of blast furnaslag from the Durgapur Steel Plant to set up a slag-cement plant at Durgapur. The Durgapur Slag-Cement un
comprising the fourth cement mill with an integrated E.S.P. unit was commissioned inMarch 1981.
1970:-InMarch, 18, 94,527 Bonus Equity shares issued in the prop. 1:1.
1979:- 39,89,054 Bonus Equity shares issued in prop. 1:1.
1982:- The Company undertook a comprehensive modernisation scheme of its spinning unit phased over thryears.
-Bally Jute Co. Ltd., having two units viz. Bally-1 and Bally-2 was amalgamated with the Company wieffect from 1st April. As per the scheme, a total of 1,02,370 equity shares of Rs 10 each and 30,000 - 15
debentures of Rs 100 each were allotted to the members of Bally Jute Co. Ltd. These debentures a
redeemable at par onMarch '90. The Bally-1 Jute Mill and Bally-2 Jute Mill have come to be known as BalJuteMills and Soorah Jute Mill respectively.
- 4, 61,848 No. of equity shares issued on 1.4.1983 (prem. Rs 20 per share) to financial institutions conversion of loans/debs. (30,186 shares to ICICI; 1,666 shares to IFCI; 1, 43,333 shares to IDBI; 1,43,3
shares to UTI and 1,43,333 shares to GIC and its subsidiaries).
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1983:- Two diesel generating sets of4000 KW capacity each were installed and commissioned at Birla VikCement Unit.
-With effect from 7th February, the name of the company was changed from the Birla Jute Mfg. Co. Ltd. Birla Jute & Industries, Ltd. Effective 31st March 1997, the name was again changed from `Birla Jute
Industries Ltd.' to Birla Corp. Ltd.
- With effect from 1st April, the Company cancelled its 23,642 - 7 1/2% preference shares of Rs 100 each an
issued and allotted in lieu thereof 23,642 - 15% secured non-convertible redeemable debentures of Rs 100 eain the prop. Of 1 debenture for every one such preference share. These debentures are redeemable at par o
31stMarch, 1990 or earlier by giving three months' prior notice.
1984:- The captive thermal plant of4.5MW at Chittorgarh was commissioned in December 1985.
- In order to raise funds for substantial expansion in the capacity of the cement works at Chittorgarh, thCompany issued 13 1/2% convertible debentures of Rs 230 each for Rs 11.5 crores and 15% non-convertib
debentures of Rs 100 each for another Rs 8 crores, Rs 30 from each convertible debenture was converted intoequity shares of Rs 10 each on 1st July 1985.
-1,43,333 No. of equity shares issued (prem. of Rs 20 per share) to LIC on 1st September, in part conversion loan.
1985:- 15, 00,000 shares issued at par on 1st July, in conversion of debs. 1,01,85,659 bonus equity shar
issued in prop. 1:1.
1986:- A letter of intent was received for increasing the installed capacity from 45,680 spindles to 50,0
spindles. It was implemented during the year.
1987:- The old wet process plant was affected by poor quality of coal but the modern dry process plant waffected by poor quality of coal.
- The Birla Carbide & Gases unit suffered losses on account of increase in the costs of power and carco
coupled with sharp decline in the realisations.
- A letter of intent was received for the setting up of a hydrogen peroxide plant of4,500 TPA capacities
100% concentration basis. Efforts were made to obtain technology and know-how for the project.
1988:- As a part of modernisation programme, modern jute spreaders were introduced in both Birla and BalMills. However, labour union at all the three mills were opposing the modernisation programme fearin
retrenchment.
- The inferior quality of coal and labour troubles coupled with sluggish demand for cement reduced the ceme
capacity utilisation at the old plant in Chittor.
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- The production at Birla Carbide & Gases unit was slightlylowerduetoa six week shut down ofthplantforreliningoffurnaceand limekiln.
1989:-An agreement was signed on 18th February, by the company and the Soviet Collaborators, viz. OdesTechnical FabricsMill and V/o Novoexport to transfer all assets and liabilities of Bally Jute Mills, with effe
from 1st April or other date as agreed upon, to a new Joint Venture Company, Birla Odessa Industries Ltd. consideration of offer of equity shares of paid-up equity share capital of the Joint Venture Company.
- A collaboration agreement was signed by the Company with EMPRWERKE of Germany for the manufactuof Automobile interior Door panels based on jute fibre.
- AMOU was signed by the Company withMaruti Udyog Ltd. to supply door panels manufactured by them.
- The Company initiated a fresh programme of modernisation.
- As the long term prospect for the manufacture of calcium carbide in W. Bengal is not encouragin
application was made to Govt. for conversion of the furnaces to the manufacture of ferro-silicon.
1990:- Production of both cement and clinker and despatches of cement were lower due to the prolong
disruption in production at the chittor cement works and due to labour unrest.
- An application for a letter of intent for expansion at Satna was submitted for expansion of its capacity fro
15.5 lakh tonnes to 27.5 lakh tonnes.
- In February, the company allotted 20,00,000-14% secured redeemable non-convertible debentures of 1each to financial institutions on private placement basis.
1991:- The break-up of the USSR and the suspension of their purchasing during the second half of 1991-was a severe blow to the Company. But the benefits could not be reaped due to an industry wide strike that l
to closure of the mills for seven weeks.
- 11,000 high speed ring spindles, three high speed cards, five high speed draw frames were replaced and fivsets of autolevellers were installed. In addition, four Volkman TFO machines were also added to augme
supply of knotless export yarn.
- With a view to increase export of higher value added jute products, the export yarn unit at Birlapur was beinexpanded and quality upgraded while a new unit was being set up at Bally to produce high quality export ya
with upto-date technology.
- Operations of the Satna plant were adversely affected due to heavy power cuts and shortage and poor qualiof coal leading to lower production of clinker and cement.
- The Chittor plant was awarded the second best productivity award for the year 1991-92 and 1993-94.
- With the commissioning of two modified kilns with the installed capacity of each kiln increased to 900 TPwhile energy consumption got reduced by 25%.
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- Birla Vinoleum's new PVC floor covering plant was fully installed.
- The Company undertook to manufacture Cetaria ferro alloys in one of the furnaces of Birla Carbide.
- India Linoleums Ltd., a subsidiary of the Company was amalgamated with the company effective 1st Apr
As per the scheme, 1 ordinary share of Rs 10 each of the Company was issued for every5
equity shares of R10 each held in India Linoleum, Ltd. Accordingly, 700 ordinary shares of Rs 10 each were allotted to thshareholders of erstwhile India Linoleum, Ltd.
1992:- The closure of the Company's Bally Jute Mills from 26th August, had also contributed to the loturnover and profits.
- Due to severe labour problems, Bally Jute Mills suspended production from 26th August. The continued lo
of markets in Russia and other CIS countries was made up by increased export to GCA markets. Bally JuMills reopened on 1st August 1993 with the commissioning of sophisticated export yearn unit and high val
fabric unit.
- Production of Birla Synthetics division declined due to the shortage in the supply of viscose staple fibre froGrasim, the major supplier which had a closure of 60 days due to labour problems.
- Additional autoconers, T.F.O. machines and other equipments were commissioned for catering to the expomarket.
- Installation of high efficiency separators on all cement grinding mills. The cement grinding mill w
scheduled to be commissioned by September 1993.
- The Company entered into a long term agreement with a German linoleum manufacture for technical help
upgrading the product and marketing it within Europe on a regular basis.
- The revival and remodelling of the second submerged arc furnace was undertaken for the production of fermanganese.
1995:- Production of jute declined due to the industrywide strike called by the trade unions, shortage of fib
and acute shortage of raw jute resulting in an unprecendented rise in prices.
- The company was setting up Dornier Looms at Birla Jute Mills to produce Lino Hessian and othspecialities to give a further boost to the production of export-oriented value added items.
- Two DG sets of 6M
W capacity were to be installed at Satna andChittor to meet the power shortages.
1996:- A joint venture company `Birla Redland Readymix Ltd.' was incorporated with Redland PLC, UK
set up facilities for manufacture of readymix cement concrete in India.
- The company proposed to set up a 1.2 million plant each at Satna and Chittor.
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- India Linoleum unit was demerged from the company under a scheme of arrangement which provided ftransfer of all assets and liabilities of the India Linoleum unit to Birla-DLW Ltd. a joint venture between th
company and DLW Aktiengesellschaft of Germany. This arrangement was effective from 1st April.
1997:- As on 31st March, the Company held the entire issued share capital of its subsidiaries, Assam Ju
Supply Co. Ltd.
- Shareholders of Birla Jute & Industries Ltd at an extra ordinary general meeting which sought to authori
the board to change the name of the company to Birla Corp Ltd and to restructure the present businesses of tcompany.
- Shareholders of Birla Corp (the erstwhile Birla Jute & Industries Ltd) on 16th July approved the companyproposal to promote a 50:50 joint venture with Redland Plc of the UK, but only after voicing their resentme
over the decision.
1998:- Birla Corp Ltd. of theM P Birla group is setting up a fly ash-based cement grinding unit at Rae Bareil
in Uttar Pradesh.
1999:- The Company is using slag in the range of50-55 per cent with a small percentage of chemical additiv
to ensure strength, durability and anti-corrosive properties of its cement.
- The company's Satna and Durgapur plants have been exporting large quantities of cement to Bangladesh an
Nepal where prices have gone down "substantially on account of cheaper supplies from China and Indonesand the prevailing prices hardly give any contribution."
- The company's installed capacity will go up to five million tonnes per annum.
2000:- Due to the continuing strike by workers of the company's unit at Birla Jute Mills, Birlapur, whicommenced sinceMarch 22, the management of the company has been constrained to declare a lock-out of t
mills with effect from April 3.
- The Company to increase the authorised share capital of the company from Rs. 75 crores to Rs. 100 crore.
- The Company to issue ordinary shares of the company on rights basis to the shareholders of the company
the ratio of three ordinary shares for every 10 ordinary shares held within a price band of Rs. 20 to Rs. 24.
2002:-Makes it clear not to invest further in Cement business.
-Board approves the proposal to install power plants with a total capacity of52 MW at its Cement Units Satna.
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2003:- Appoints Shri Jayant Kumar Ray as Nominee Director by IDBI on the board of the company, and ShPrachetaMajumdar as the Additional Director on the Board of the company.
-Receives 6 disclosures from Shri N K Kejriwal, Director and his family members.
-Birla Corporation Ltd has informed that Shri. Ajay Saraf, Deputy GeneralM
anager, ICICI Bank Ltd., hbeen appointed as Nominee Director by ICICI Bank Limited in place of Shri Arnab Basu on the Board of tcompany.
-Birla JuteMills and Soorah Jute Mills have gone on strike on December 29, 2003.
2004:- Birla Corporation Ltd has informed that the ordinary shares of the Company have been delisted froDSE w.e.f. December 29, 2003.
-Birla Corporation Ltd had informed regarding an indefinite strike at the company's units: Birla Jute Mills a
Soorah Jute Mills. The company has now informed that following the industry-wide tripartite agreement, t
workmen have agreed to call-off the strike immediately and resume normal work in the mills wef 6.00 am January 10, 2004.
-Chairperson Smt. Priyamvada Birla passes away on July 3, 2004
2007:- Birla Corporation Ltd has appointed Shri. B B Tandon as Director on the Board of the Company to f
the casual vacancy arising out of the sad demise of Shri. P K Kaul.
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ADITYA BIRLA CORPORATIONThe majorcompaniesofthe GroupareamongIndia'sleading corporates.Theseinclude:
COMPANY NAME PRODUCTSANDSERVICES
Grasim Cement, viscose staplefibre, rayon grade pulp, readymix concrete, chemicals, textilesUltraTech Cement Ltd Cement, readymix concrete
Samruddhi Cement Cement
Hindalco Aluminium, copper
Novelis Inc. Aluminiumrolled products, cans, primarymetal,recycling
ADITYA BIRLA MINES AND MINERALS Australia - copperminesADITYA BIRLA CHEMICALS Caustic sodaHindalco-Almex Aerospace Limited Aerospacealloy
Utkal Alumina International Limited Aerospacealloy
Dahej Harbour& Infrastructure Limited Alumina
Dahej Harbour& Infrastructure Limited Handlingofcaptivecargo (copperunit)and commercialcargo
Aditya Birla Scienceand Technology Company Limited R&D
Tubed Coal Mines Limited Mining
Mahan Coal Limited Mining
Aditya Birla Nuvo Branded garments, viscosefilamentyarn, carbon black,agribusiness, insulators,
Birla Sun Life Insurance Company Limited Lifeinsurance
Birla Sun Life Asset Management Company Limited. Assetmanagement
Aditya Birla Finance Limited Non bankingfinancial services
Aditya Birla Money Mart Limited. Distribution and wealthmanagement
Aditya Birla Money Limited Broking
Birla Insurance Advisory & Broking Services Ltd Generalinsuranceadvisoryand broking
Idea CellularLtd. Cellularservices
Aditya Birla Minacs Worldwide Limited* IT-ITeS
Madura Garments Life Style Retail Company Ltd Branded apparelretail
PeterEngland Fashions and Retail Ltd Apparelretail
Essel Mining & IndustriesLtd Iron oremining, nobleferroalloys, and wind powergeneration
Aditya BirlaRetailLimited FMCG products, fruits, vegetables, groceries, frozenfood, bakery, homecare
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Cement Industry
Cement industry is one of the important industries to country development in the light of the main importa
basis for construction industry and also the important indicator showing domestic economic growth. In tpast, the domestic demand of cement used to be up to 36 million tons. But, the severely negative effects fro
economic crisis in 1997 have caused real estate and construction industry subdued; the domestic demand cement has shrunk and been in oversupply atmosphere.
Until 20012003, the government has launched many economic actuating policies. This has made real esta
and construction industry recovered and the demand of cement has been increasing gradually from 21 millitons in 2001 to 25 million tons and 26.82 million tons in 2002 and 2003 respectively; and the price level
higher in line with increased production cost.
Cement Industry originated in India when the first plant commenced production in 1914 at PorbandaGujarat. The industry has since been growing at a steady pace, but in the initial stage, particularly during th
period before Independence, the growth had been very slow. Since indigenous production was not sufficient meet the entire domestic demand, the Government had to control its price and distribution statutorily. Lar
quantities of cement had to be imported for meeting the deficit. The industry was partially decontrolled in 19and this gave impetus to its pace of growth. Installed capacity increased to more than double from 27 millio
tones in 1980-81 to 62 million tones in 1989-90.
The cement industry responded positively to liberalization policy and the Government decontrolled tindustry fully on 1
stMarch 1989. From 1991 onwards cement industry got the status of a priority industry
schedule III of the industry policy statement, which made it eligible for automatic approval for foreiginvestment up to 51% and also for technical collaboration on normal terms of payment of royalty.
After the globalization and liberalization of Indian economy, the cement industry has been growing rapidly
an average rate of 9 per cent. The country is now the second largest producer of cement in the world next onto China with a total capacity of 188.97 million tones. Additionally, in the last two decades, the industry h
undergone rapid technological up gradation and growth, and now, some of the cement plants in India acomparable to the worlds best operating plants in all respects.
Till a few years ago India was importing cement from other countries, as the production could not meet t
demand for the whole country. Now the tables have turned as India has started exporting large quantities cement and clinker to Bangladesh, Nepal, Sri Lanka, Maldives, Mauritius, Africa, Seychelles, Burma, UA
and Singapore etc.
India is today the second largest producer of cement in world with an installed capacity of close
188.97 million tones per year. 95 % is consumed domestically and only 5% is exported. Demand is growinat more than 10 % per annum.More than 90 % of production comes from large cement plants. There are a tot
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of 130 large and more than 350 small cement manufacturing units in the country. More than 80% of tcement-manufacturing units use modern environment friendly dry process.
Today total number of cement companies in Indian market are 47,having number of cement plants 139, t
installed capacity of large plants is 188.97 million tones and cement production during 2007-2008 was 168.
million tones
The forms of cement produced:-
y Ordinary Portland Cement ( OPC )
y Portland Pozzolana Cement ( PPC )
y Portland Slag Cement ( PSC )
Cement Industry - INDIA
Overview
1. Indian cement industry dates back to 1914 - first unit was set-up at Porbandar with a capacity of 1000 tone
2. Currently India is ranked second in the world with an installed capacity of 188.97 million tones.3. Current per capita consumption - 85 kgs. as against world standard of 256 kgs
4. 55 - 60% of the cost of production are government controlled5. Continuous Growth approximately 1.3 times of the countrys GDP.
6. Construction is the biggest industry after agriculture in India. It is a industry worth Rs.300 Thousand crore7. During 2007-2008 cement demand grew 8%,with a firmly country wide rise in prices.
Transportation:-
y Transportation costs high - freight accounts for 17% of the production cost
y Road preferred mode for transportation for distances less than 250kmHowever, industry is heavily dependant on roads as the railway infrastructure is not adequate - shortaof wagons.
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Overview of the performance of the Cement Sector:
The Indian cement Industry not only ranks second in the production of cement in the world but also producquality cement, which meets global standards. However, the industry faces a number of constraints in terms
high cost of power, high railway tariff; high incidence of state and central levies and duties; lack of private an
public investment in infrastructure projects; poor quality coal and inadequate growth of related infrastructulike sea and rail transport, ports and bulk terminals. In order to utilize excess capacity available with tcement industry, the government has identified the following thrust areas for increasing demand for cement:
Housing development programmes; Promotion of concrete highways and roads; Use of ready-mix concrete in large infrastructure projects; and Construction of concrete roads in rural areas under PrimeMinisters Gram Sadak Yojana.
The types of cement in India have increased over the years with the advancement in research, development,
and technology. The Indian cement industry is witnessing a boom as a result of which the production ofdifferent kinds of cement in India has also increased.
By a fair estimate, there are around 11 different types of cement that are being produced in India. Theproduction of all these cement varieties is according to the specifications of the cement.
Major players in Indian cement sector:
y ACC
y Lafarge
y Gujarat Ambuja Cement
y Ultratech Cement
y India Cements
y Century Cements
y Jaypee Group
y Madras Cements
y Birla Corporation Limited
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Some of the various types of cement produced in India are:
y Clinker Cement
y Ordinary Portland Cement
y
Portland Blast Furnace Slag Cementy Portland Pozzolana Cement
y Rapid Hardening Portland Cement
y Oil Well Cement
y White Cement
y Sulphate Resisting Portland Cement
Type of cement
Portlandcement
White cement
Oil well cement
Ordinarycement
Sulphatecement
Rapid hardningcement
Blended cement
Portlandpozollonacement
Portland blastfurnace slag
cement
Specialtycement
Expansive
cement
Highstrength cement
MasonryCement
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GRASIM INDUSTRY A UNIT OF ADITYA BIRLA GROUP
Riding on the back of a strong product portfolio and intelligent, innovations, Grasim Cement is firmly intoexpansion mode.
When one discusses the behemoths of Indian industry, it is hard to miss the name Grasim Industries Limited,
the flagship of the Aditya Birla Group. Currently, it ranks among India's 10 largest private sector companies iterms of assets and sales, with a turnover of Rs 4626 crore in financial 2003. Having commenced operations a textiles manufacturer in 1948, it has diversified into sponge iron, chemicals, textiles and cement. Among al
these industries, it is cement, which stands out as the focus area for the company.In the mid-eighties, with the opening up of the cement industry, Grasim diversified into cement production. I
first cement plant at Jawad in central India went on stream in 1985. Since then the cement division of Grasimhas grown rapidly - with two more plants coming up at Raipur and Shambhupura.
In the same year, with the consolidation of the group's cement operations, the cement business of groupcompany Indian Rayon was transferred to Grasim. This added India's largest single-location grey cement plan
at Raipur (Madhya Pradesh), Shambhupura (Rajasthan), Reddipalayam (Tamil Nadu), Sikka (Gujarat),Malkhed (Kamataka), Hotgi and one of the world's largest white cement plants at Kharia Khangar (Rajasthan
in Grasim's kitty. Since then, its cement business has grown rapidly, making it one of India's premier cementcompanies.Its cement production for financial 2003 was 11.09 million tons (MT). Grasim Cement is India's
third largest cement manufacturer, with an aggregate grey cement capacity of 13.41 million tonnes per annumspread across India with implementation of ongoing modemisation and capacity expansion projects through
removal of bottlenecking.In 1998, Grasim acquired Dharani Cements with its plant at Ariyalur (Tamil Nadu), strengthening its position
in the south and west. The unit was subsequently merged and together with the recently-expanded plant atReddipalayam, is known as Grasim South. Shree Digvijay Cement, a subsidiary company of Grasim, which
was acquired in 1998, has its integrated grey cement plant at Sikka (Gujarat).At each of these plants, due attention has been paid to infrastructure to facilitate seamless operations. The
plants are located close to sizeable limestone mines and are fully automated to ensure consistently good
quality. Grasim has procured railway wagon rakes to ease the problem of movement of cement besides savingon transportation cost. The company has a captive jetty having dry cargo capacity of 3 million tones perannum. This jetty is used to export cement and clinker and to import coal for captive use.All the company's
cement units are well equipped and are ISO 9001 certified for quality systems and ISO 14001 certified forenvironmental management systems. With 75 per cent of its power requirements coming through captive
sources, the company has incurred a capital expenditure of Rs 189 crore, towards setting up of two powerplants of 23 MW and 12.5MW capacity. The power plant at Aditya Cement was commissioned inMarch 200
at a cost of Rs 84 crore. The remaining expenditure has been incurred on setting up the power plant at GrasimCement south.
Grasim has repositioned its portfolio of cement brands under the Aditya Birla Group logo. Cement is availablin the market in a number of grades including 33,43,53 OPC (Ordinary Portland Cement) and PPC (Pozzolon
Portland Cement). Vikram Cement is also known for its special cement like SRC (Sulphate Resistant Cementmeant Grasim has repositioned its portfolio of cement brands under the Aditya Birla Group logo. Cement is
available in the market in a number of grades including 33,43,53 OPC (Ordinary Portland Cement) and PPC(Pozzolona Portland Cement). Vikram Cement is also known for its special cement like SRC (Sulphate
Resistant Cement) meant especially for use in specific applications.To leverage its brand equity, Birla Plus, Birla Super and Birla ReadyMix have been identified as national
brands. The Birla White cement has made its mark in the niche segment of flooring and wall finishing.Tofulfill customer needs in niche segments, Birla White has introduced two new products - Birla White GRC
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(Glass Reinforced Concrete) and Birla White Wall Care Putty and the Birla White Glass Reinforced ConcreteWith a rising demand from customers for quality and standardisation, Birla Ready mix has an edge with quic
and prompt delivery of fresh factory-made concrete, delivered at the customer's site.The company has commissioned four ready-mix concrete plants of an aggregate capacity of 1 million cubic
metres at Hyderabad, Chennai, Noida and Bangalore. Moreover, with the existing six plants of420-m3/hr
capacity and plans for more, Birla Ready mix enables customers to plan for just-in-time concreting.Recognising the fact that a large product portfolio does not necessarily ensure success in the intenselyfragmented and competitive cement industry, Grasim Industries Ltd. offers a host of value-added services to
customers, viz, concrete mix design, cube testing services, non-destructive testing and training and site visitsby qualified engineers. It is pooling the collective inputs of construction professionals knowledge, through a
web based knowledge community. There are mobile testing cement silos at Bangalore to deliver fresh cemenat the customer's doorstep, A very innovative concept developed by Grasim Industries Ltd. was the launch of
'Mobile Concrete Laboratory', at almost 38 locations throughout India.Grasim is strengthening its hold overdistribution, by its foray into retailing. Birla Super Shoppes - a chain of exclusive cement outlets, are taking
shape across the country. Each Shoppe has a qualified civil engineer who assists customers.These initiatives explain exactly why the company was awarded the National award for Quality Excellence in
Indian Cement Indusfry by the National Council for Cement and BuildingM
aterials, in the year 2000-01.
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UltraTech Cement Limited
UltraTech Cement Limited has an annual capacity of 23.10 million tonnes. It manufactures and marketsordinary portland cement, portland blast furnace slag cement and portland pozzalana cement. It alsomanufactures ready mix concrete.
The company has five integrated plants, six grinding units and three terminals two in India and one in Sri
Lanka. UltraTech Cement is the countrys largest exporter of cement clinker. The export markets spancountries around the Indian Ocean, Africa, Europe and theMiddle East.
The company's subsidiaries are Dakshin Cement Limited, UltraTech Cement Lanka (Pvt.) Ltd. and UltraTech
Cement Middle East Investments Limited.
Samruddhi cement limited
Net Revenue Rs. 2,214 crs.
Net Profit Rs. 315 crs.
Samruddhi Cement Limited, an Aditya Birla Group Company, today announced its results for the 1st quarterended 30th June 2010. The erstwhile cement business of Grasim Industries Ltd., holding company, was
demerged to the Company w.e.f. 1st October, 2009 and therefore the Company has no corresponding
quarter of previous year. For better comparison corresponding quarter results of cement division of Grasim argiven. Corresponding quarter results are of Cement division of Grasim.Net revenue was higher by 3% atRs.2,214 crores. Net profit stood at Rs.315 crores.Cement production grew by 8% helped by new capacities.
Sales volume increased by 5%. Realizations were lower on YoY basis, particularly in the Southernand Western regions, due to the bunching of new capacities.In White Cement, sales volumes were up by 24%
with both domestic and export markets witnessing strong demand.The sharp escalation in prices of coal andhigher freight cost coupled with lower realizations, impacted margins.
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Operational Data
Quarterended
30.06
.10
30.06
.09
% ChangeA. Financials(Rs. InCrores)
Net Revenue 2,214 2,157 3
PBIDT 631 740 (15)
NetProfit 315 NA --
EPS (Rs.) 12.0 NA --
B. OperationalData
Grey Cement Production (Mn. Tons)
5.29 4.91 8
Sales (Mn. Tons) 5.14 4.88 5
White Cement Production (Tons)
133,015 105,299 26
Sales (Tons) 133,052 106,898 24
Net revenue was higher by 3% at Rs.2,214 crores. Net profit stood at Rs.315 crores.Cement production grew
by 8% helped by new capacities. Sales volume increased by 5%. Realizations were lower on YoY basis,particularly in the Southern and Western regions, due to the bunching of new capacities.In White Cement,
sales volumes were up by 24% with both domestic and export markets witnessing strong demand.The sharp escalation in prices of coal and higher freight cost coupled with lower realizations, impacted
margins.
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Merger with UltraTech Cement Ltd.
The merger of the Company with UltraTech Cement Ltd. is in its final stages of completion. All the regulator
approvals including the Court approvals have been obtained and accordingly the amalgamation of theCompany with UltraTech w.e.f. 1st July, 2010 (the Appointed Date) will become effective on 1st August, 20as envisaged originally.The shareholders of Samruddhi will receive 4 equity shares of Rs.10 each of Ultratech
credited as fully paid up for every 7 shares of Rs.5 each held as on 25thAugust, 2010, being the record datefixed for the purpose.
Outlook
Industry demand is likely to grow by over 10%. The increase in consumption, both on account of Governmen
and private spending together with a revival in the corporate capex cycle will boost the cement demand.Cement prices are likely to remain under pressure due to oversupply. The surplus scenario in the industry ma
last for a limited period of 6 to 8 quarters as capacity addition in FY12 is likely to be modest. The Companyfocus on higher volume growth, better transport and logistics support together with cost efficiency, should he
in partially mitigating the impact. Cautionary Statement Statements in this Press Release describing theCompanys objectives, projections, estimates, expectations or predictions may be forward looking
statements within the meaning of applicable securities law and regulations. Actual results could differmaterially from those express or implied.Important factors that could make a difference to the Companys
operations include global and Indian demand supply conditions, finished goods prices, feed stock availabilityand prices, cyclical demand and pricing in the Companys principal markets, changes in Government
regulations, taxregimes, economic developments within India and the countries within which the Company conducts busines
and other factors such as litigation and labour negotiations. The Company assume no responsibility to publiclamend, modify or revise any forward looking statement, on the basis of any subsequent development,
information
Plant Locations:Aditya Cement Works
AdityapuramSawa - Shambhupura RoadDist. Chittorgarh, Rajasthan
Rawan Cement WorksGrasim Vihar, VillageP.O., RawanTehsil: Sigma, Dist. Raipur(C.G.)
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Vikram Cement WorksDist. NeemuchKhor458 470 (M.P.)
Rajashree Cement WorksAdityaNagar, Malkhed RoadGulbarga 585292, Karnataka
Kotputli Cement WorksV & P.O. MohanpuraTelsil: KotputliDist. Jaipur, Rajasthan
Redddipalayam Cement WorksReddipalayamP.O.Dist. Ariyalur621704, T.N.
Birla WhiteRajashreeNagar, P.O. Kharia KhangarTehsil: BhopalgarhDist. Jodhpur342606 (Rajasthan)
Location OfCement PlantsinIndia:-
STATE TOWN UNITS
MadhyaPradesh Satna Satna Cement WorksBirla Vikas Cement
Rajasthan Chanderia Birla Cement WorksChanderia Cement Works
West Bengal Durgapur DurgapurCement WorksDurgaHitech Cement
UttarPradesh Raebareli Raebareli Grindingunit
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Birla white cement
Birla White is India's largest white cement producer with a production capacity of over550 thousand tonnesannually. Established in 1988 with an initial production capacity of 80 thousand tonnes, the company has
indeed come a long way. Its manufacturing plant is today regarded as one of the most technologically-advanced white cement plants in the world.
Driven by innovation and excellence, Birla White has consistently been improving its product quality through
technological advancements. Significant efforts have also been made to diversify its product portfolio. BirlaWhite today boasts of a product portfolio consisting of several surface finishing options. The company has a
strong globalpresence in the developed European and fast-growing Asian markets.
Cement performance for July 2010:
The Aditya Birla Groups cement production for the period April-July 2010 has moved up by 4.99% at 128.5lakh mt as against 122.46 lakh mt during April-July 2009. Dispatches rose by 4.96% at 128.05 lakh mt in
April-July 2010 vis-a-vis 122.00 lakh mt in the corresponding period last year.
Cement production for the month of July 2010 is higher by 4.75% at 28.86 lakh mt, and dispatches at 29.16
lakh mt by 7.94% over July 2009.
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PRODUCTS OF BIRLA WHITE CEMENT:
y WHITE CEMENT
y
WALLCARE PUTTYy TEXTURA
y KOOL-N-SEAL
y GRC
y LEVELPLAST
white cement-Birla White Cement takes artistic expression in architectural design to the next level. A
product of the most advanced technologies and manufacturing processes, it offers a pristine white canvas for
crafting architectural elegance. Its exceedingly high refractive index and high opacity imparts brilliant lustre
and a smooth finish to surfaces, even when blended with pigments. It offers the freedom to create designs wit
a wide palette of colours, textures, shapes and sizes. Birla White is the preferred white cement for decorative
paints, plasters, Mosaic tiles, Terrazzo flooring and white cement based value-added products.
Wallcare putty- The elegant dcor of your home can easily be marred by the eyesore of flaking, ruiningeven the expensive coat of paint on your walls. Birla White Wallcare Putty offers you total protection against
flaking. Its superior quality makes it the only putty in India to meet global standards (HDB, Singapore). As a
white cement-based putty, it binds strongly with the base plaster, even if the surface is damp, and forms a
protective base. It fills up the fine pores in the walls and ceiling, giving you a smooth and dry surface for
painting on. With an effective protection against flaking, you are assured of a good looking home for years to
come.
Textura-Style - doesn't stop just at the look of your walls, but extends even to its feel. Birla White Textura
manufactured using state-of-the-art technology, offers a variety of exquisite textures for your walls. What's
more, Birla White Textura also offers protection for your walls from weathering. It's more economical as
compared to acrylic based finish, as there's no need to apply primer. Birla White Textura is available in two
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varieties - Spray Roller Finish (RF), which is ideal for interiors, and Trowel Finish (TF), which is best-suited
for external walls.
Kool-n-seal -Bring home one of the most advanced technologies in construction -
Birla White Kool-n-Seal. It is a revolutionary coating material, which outperforms every other traditionaloption. When applied on the roof or exterior walls, its unique formulation cools the building interiors, reducin
the need for air conditioning and cutting your electricity bills. In addition, Kool-n-Seal also seals minor crackin the surface and helps arrest seepage. Unlike other coating materials, it can be easily applied in the form of
slurry with a brush. That's why, it is ideal for roofs, terraces, water tanks, cracks in parapet walls and waterpipes.
GRC -Glass reinforced Concrete-Great Architectural Looks
LEVELPLAST- Give your walls the distinction of a smooth and glossy finish with Birla White LevelplastThis water-resistant, white cement-based product is perfect for levelling concrete/mortar walls and ceilings
especially when there are major undulations. It fills up the fine pores of concrete/mortar walls and ceilings togive a white, smooth and dry surface for painting. A superior substitute for POP and Gypsum, it possessesmore adhesive strength and durability, while increasing the life of your paint. This ensures your walls look
freshly painted, even after many years.
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CEMENTMANUFACTURING PROCESS
In India, the different types of cement are manufactured using dry, semi-dry, and wet processes.
the production of Clinker Cement, a lot of energy is required. It is produced by using materials such limestone, iron oxides, aluminum, and silicon oxides. Among the different kinds of cement produced in IndPortland Pozzolana Cement, Ordinary Portland Cement, and Portland Blast Furnace Slag Cement are the mo
important because they account for around 99% of the total cement production in India.
STOCK PILE STOCK PILE
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(RAW GRINDING)
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SOURCE OF SAMPLES FOR QUALITY CONTROL
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Production & Consumption Trend in Cement:-
GDPversus cement demand growth:-
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All-Indiaaverage cement price trend
Utilizationversus cement prices:-
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The meaning of marketing research
Today, marketing research is pervasive. This will be caused by the increasing isolation of the individual in osociety and the corresponding need to access more information through impersonal versus personal methods.
It is unlikely that many readers of this text will ultimately have marketing research as their primary
employment so we have presented marketing research in a non-technical manner.
As we have discussed a length, a marketing orientation requires that the organization study and understand
what will bring its customers satisfaction. This may sound simple, but it is not. Often very creative techniquare needed to truly understand what the customer is seeking and how to deliver that solution on a profitable
basis. Customers seek benefits, and it is often difficult for the customer to express what those benefits are.The marketing research department is responsible for providing this understanding. However, marketing
research should never be seen as a separate entity isolated from the rest of the marketing function or from theother functional areas of the firm. If this happens, marketing research departments often lose what creativity
they had and begin to focus on a known set of techniques with which marketing research personnel arecomfortable. This results in a lack of fresh thinking and innovative approaches. The marketing research
function also, ironically, becomes separated from the R&D function and those in the organization responsiblefor new product conceptualization.
We will define marketing research as all techniques used to provide information that assists the firm in all o
its decision-making processes relevant to customers or clients. While this definition is very broad, it is aimeat giving the marketing research function the breadth and depth of latitude that it needs to operate effectively
Note that the outcome of marketing research is enhanced decision-making about needs and wants in themarketplace and how to meet those needs and wants. Also note that marketing research is responsible for no
only data gathering about customers, but data analysis and presentation to management about customers andother issues.
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Types of marketing research
Marketing research approaches are varied. One marketing research project may entail questioning thousandsof people by use of a survey instrument while another project may only involve meeting with a few present
customers for breakfast. There are many different types of marketing research projects that require varioustypes of knowledge and academic background. Approaches to conducting marketing research range from
quantitative to qualitative in nature. Quantitative marketing research is composed of sophisticated techniquesthat require substantial competence in descriptive statistics while qualitative marketing research may require
broad knowledge of psychology (the study of individual behavior), sociology (the study of group behavior),and social psychology (the study of individual behavior in a group). Unfortunately, there is presently no
required accreditation for a person to perform marketing research, thus, there are many unqualified individuaand organizations that sell marketing research services, particularly qualitative marketing research, who are n
well trained or educated in the discipline and do not have sufficient experience.
Quantitative Marketing Research
Types of quantitative marketing research include surveys, audience measurement for different types of mediaand store audits, to name only a few. Although marketing texts usually devote considerable attention to these
approaches, the quantitative approach has given way to qualitative marketing research in many cases. Thus,qualitative research, at present, is growing much faster in popularity. The reasons for this are that qualitative
research is usually less expensive and faster to perform than quantitative marketing research.
Qualitative Marketing Research
Qualitative research is less involved with numbers and usually provides a closer touch with the subjects inthe research project. Types of qualitative research include focus groups and observational studies. Focus
groups gather a small number of respondents together to discuss topics yielded by the research questions. Amoderator leads the discussion and helps keep discussion lively and focused around the research questions.
The moderator creates or is furnished with a discussion guide that outlines the areas to be explored in thefocus group.
Observational studies involve watching respondents while they are engaged in some activity. A common us
of the observational method is watching children play with prototypes of toys to understand which toy will bemost popular. Mechanical observation is also used at retail stores to count the number of customers
(sometimes with a simple turnstile) and in other public areas, parks for example.) Secret shoppers, also callemystery shoppers, are often used to help obtain a real customers assessment of a stores service quality .
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The Marketing Research Process
In order to obtain useful results, that is, results on which we can make reliable decisions, we must follow aconsistent process. We recommend a process that includes these steps:
a. Establish a research projectb. Conduct the research projectc. Analyze the findings of the research projectd. Summarize and Present the findings of the research projecte. Assess the findings of the research project
Establish a research project
This step will usually involve four steps:
a. meet with client(s)b. jointly explore problem or opportunity to be researchedc. create research questionsd. based on the research questions, create a research design
Meet with client(s)
When beginning a marketing research project, we need to start with identifying the problem or opportunity.Although there are exceptions, this will often require a personal meeting with all of those involved in
establishing the project including the client, the researcher(s), and others involved in the project. The initialmeeting is often not sufficient to establish the problem or opportunity to be researched. Another meeting is
usually required to define the problem or opportunity clearly enough to create research questions.
It is imperative that this initial meeting be approached with an open mind and no preconceived notions aboutthe answer. If a client or company manager already has the answer (has already essentially decided on wh
the findings of the project will be), a marketing research project is a waste of resources. We say this becausetoo often the findings of a well-executed study are rejected because it found the wrong answer. We have no
way of estimating how often this happens, but we can say it happens often.
The reason we break meeting with clients into a separate step is because there will often be several meetings.It is important to realize that divergent thinking will play an important role at this point of the research
process. That is, this is the stage that the researcher must avoid seeking closure and keep an open mind abou
how to characterize the problem or opportunity under consideration. Clients will often have lots of ideas abothe project, including the problems and a likely solution to the problem. However, clients often bring asymptom into consideration as the problem. For example, if one says that sales are down in the southeas
region. This is a symptom, not the problem. The problem is the cause of the drop in sales in the southeast sothe researcher must search upstream in time and events from the sales decline. This stage is a data gatherin
stage for the researcher. Often, after meeting with the client, the researcher may decide not to take the researproject because the client is not ready to pursue the project.
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Create research questions
After the researcher and client have agreed on problem or opportunity definition, the researcher will be able t
formulate research questions. A research question is a statement of what queries the project will seek toanswer. In our example, likely causes identified in client meetings included aggressive efforts by a new
competitor, demographic shifts in the population, and the possibility that our product is outdated in the eyes othe marketplace. Thus, the research questions may be stated for the southeast region study as:
Research question 1 what is the impact of our competitors on our sales?
Research question 2 what demographic changes have taken place recently?Research question 3 have there been changes in perception of our product?
Note that the research question is rarely synonymous with a survey question that is, several survey
questions will usually be required to address one research question. Formulating dependable survey questionis a highly technical and demanding process that requires extensive training and experience. Survey question
should be both reliable and valid. Reliability is the ability of a certain question to gain consistent responses
over asking the same questions several times. For example, if we ask several people the same question and gvery similar results, we can say the question is reliable. However, this does not mean that the question will buseful for our study. Questions also need to be valid. Validity is the ability of a question to measure what it
purports to measure.
For example, assume we are attempting to ascertain peoples attitudes toward Dillards Department Store. Whave male and female models interview customers as they enter the store. Male models interview all females
entering the store, and female models interview all males entering the store. The results of the survey indicatthat Ninety percent of those surveyed find the Dillards shopping experience either Extremely enjoyable o
Very enjoyable. Were the findings of this survey reliable? Were they valid? Remember, to be reliable aquestion need only produce consistent answers and to be valid, a question must measure what the researcherclaims it measures. Answers appear at the end of
the chapter.
Create a research design
The research design is the approach we use to answer the research questions. Often the client will havealready decided on a research design without considering what the appropriate one would be. For example, i
one case, a small candy manufacturer had decided it needed to research the market. The company hadalready created a survey form to be sent out though mail. A meeting was held between the candy company
and a marketing research company. After some consideration of research questions, the research design waschanged to include a series of focus groups, and a mall intercept survey. The mail survey was deleted from th
research plan.
Research designs can be qualitative or quantitative or include both types of research in larger projects. Whenthe budget will allow it, which is rare, both qualitative and quantitative approaches should be used to answer
the research questions. Alternatively, often clients must choose only one or two of the most compellingresearch questions to address using either a quantitative approach or a qualitative approach.
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Primary and Secondary data
Collecting data can be done in two ways. First, we can collect the data our self to address the researchquestions. When we do, the data collected are called primary data. When we use data for decision-making
based data that has been collected by someone else to address different research questions, this data is calledsecondary data. Marketing researchers should always explore sources of secondary data before they
decide to collect primary data. The internet contains huge amounts of secondary data and free, publisheddata can be obtained free with the help of professional library personnel. Professionaly librarians are highly
trained and are usually happy to be of assistance. In organizational marketing, secondary data research oftenbegins with the examination of the NAIC (formerly SIC) codes relevant to the companies of interest in the
study
.
Sampling and Selection of the Sample
Often marketing research studies require that data be collected through the process of sampling. A census istaken when we attempt to collect data from all possible respondents in a specified population. For example,
the U.S. Census Bureau attempts to count every person in the U.S. every ten years. On the other hand,sampling is collecting data from only a portion of all possible respondents in the population of interest. That
is, once we agree that we need to gather data from a limited number of organizations or individuals, we mustdetermine how they are to be chosen for the sampling process. There are two types of sampling: probability
sampling and nonprobability sampling. Results derived from probability samples can be applied to the
remainder of the population of organizations or people in the population of interest. Results derived fromnonprobability samples cannot be applied to the remainder of the population of interest. For example, if wedraw a sample of students at a university to determine their attitudes toward raising tuition in order to build a
parking garage on campus, in a probability sample we can generalize our results to the other students oncampus (the population of interest). However, if we collect a nonprobability sample, the responses gained
only apply to the students we questioned in that sample. Note this has to do with HOW the sample is selecteIf we just meet students on campus and do interviews, this would be a nonprobability sample and would not
necessarily produce results that would predict how most students and others on campus feel about the parkinggarage.
Thus, probability samples provide more powerful prediction abilities. However, probability samples are muc
more complex and expensive to gather.
Types of nonprobability samples are judgment samples (the interviewer as asked to apply his/her own opinionas to what respondents fit the profile of people to be interviewed), quota samples (the interviewer is given
clear direction regarding how many people of what type to interview, for example, fifty females, and fiftymales), and convenience samples (the interviewer selects people to interview based on the easiest ones to
interview). One can see that the selection process for nonprobability samples is usually unsophisticated andstraightforward.
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However, when we decide to draw a probability sample, that is, one for which we can apply basic descriptive
statistical techniques as taught in business statistics courses (for example, z scores, parametric, i.e., normaldistributions, etc.) A simple probability sample is one in which each subject in the population of interest has
an equal and known probability of being included in our sample. Can you think of a way to draw a sample o
students at your university or organization that would have these two characteristics?
Selection of nonprobability samples only requires that the people interviewed are in the population of interest
and, sometimes, as in the case of samples there is not even a guarantee of that!
Conduct the research project
The research design should provide good guidance for performing the research. As you already know,research projects can be quantitative or qualitative in nature or even involve both kinds of research approache
The statement of the research design should be sufficiently complete to allow a qualified, independent
researcher to execute the research study by following the statement of research questions and research design
Analyze the findings of the research project
This stage is comprised of organizing the data gathered and carefully ascertaining what the data indicate.
Especially for quantitative studies, statistical software is often used to facilitate activities in this stage of theproject. SPSS, SAS, (statistical package for the social sciences) or a similar statistical package is often used
perform the analysis necessary for this step. In the same spirit as this e-book, Professor BillMiller, formerly professor at Iowa State University, offers a free statistical package on the internet at his website:
The researcher must be careful to be organized and remain objective during this stage. The statement of theresearch design should provide guidance to the researcher about how the data should be organized andclassified. There is often some pressure on the researcher to find the right answer as we indicated above, bu
for the sake of integrity, the researcher must remain objectiveas s/he records, classifies and analyzes the data.
Summarize and Present the findings of the researc
project
After the data are analyzed, the researcher must draw conclusions from the findings and present the findings
a comprehensible manner. When summarizing and presenting a research project, the best guide is to keep itsimple and accessible to the reader of the report. The temptation for the researcher is often to rely too
heavily on statistics and this can very rapidly lose the attention and interest of the client. Use of such terms aa two sigma range only succeeds in confusing the client and very often over-emphasis on jargon can aliena
the client. Ironically, this is particularly important when presenting a report to clients who are highlyintelligent and educated. They know how the use of jargon is often used to obfuscate the facts and this may
indicate a lack of preparation on the part of the presenter.
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The Marketing Research Industry
There is a broad range of marketing research services available throughout the world. However, we in the Utend to be the most researched population in the world. In other countries, marketing research may be limited
or culturally unacceptable. Conducting research projects in countries other than the U.S. often requires
different research methods and may entail a total revamping of the research design.
Many companies in the U.S. provide marketing research services and data. For example, A.C. Nielsen is on
of the largest, if not the largest organization in the U.S. specializing in marketing research. Many of the majoadvertising agencies also conduct major consumer and organizational.
Brief discussion of types of surveys
While focus groups and other qualitative procedures are gaining popularity, surveys remain popular, as well.
There are three primary kinds of surveys:
mail surveys, face-to-face surveys (personal interviews), telephone surveys, and a growing category, internetsurveys, which presently are quite similar to mail surveys in terms of advantages and disadvantages. We oftecategorize the different types of surveys on the three dimensions. First, flexibility or to what extent is the
interviewer able to adjust his/her questions to the respondent depending on circumstances. Second, we alsolook at response rate, that is, what proportion of those whom we contact will ultimately participate in our
study. And finally, cost, that is, how much will it cost us to acquire each response to our survey.
Mail surveys are usually the least flexible, but may provide the lowest cost per completed survey. However,this depends on the research questions and how straightforward the survey questions are. Face-to-face survey
are still very popular, particularly the mall-intercept interview format in which interviewers are asked to solicrespondents from the general population of people who visit shopping malls. Firms engaged in organizationa
marketing can make use of this same concept by implementing trade show intercepts. Trade show interceptare similar to mall intercepts in practice except that these interviews are conducting during a trade show andrespondents are first qualified, not on demographic criteria but on criteria related to their employment. These
approaches will remain popular into the foreseeable future although such intercepts are a nonprobabilitymethod of gathering data, and thus, cannot technically be generalized to the overall population of interest.
Telephone surveys are still popular but are becoming more difficult to execute due to growing telemarketingtechniques that many consumers attempt to avoid. That is, telemarketers often adopt a foot in the door
approach by which they first claim to be doing a marketing research study in order to gain a segue into asales presentation over the telephone. As more and more consumers block their phone lines from
solicitation, telephone surveys will become more challenging to conduct.
As adoption of the internet as a method of communication continues, surveys that utilize the internet as amedium for gathering data will increase. Surveys can be easily adapted and completed on the internet making
the data collection process relatively simple. However, at present it is difficult to verify the background ofrespondents and this reduces the attractiveness of the internet for data collection aimed at gaining attitudes
toward products and services. An exception would be when the study involves those who are intimatelyrelated to internet operation and use such as Webmasters.
As time goes on, there will be many, more specialized, websites that keep track of internet usage.
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Using technology to record learning from marketin
research projects
Too often, knowledge gained from a marketing research study is lost as soon as the project is presented and a
decision is made based on the study. Marketing research projects, if well designed and executed, should bestored and made readily available for use in the future. Leading companies often catalog research projects o
their intranet so that future decision makers will have past marketing results available. However, this does nonecessarily mean that other people in that organization will actually read and make use of those study results.
Lessons can be learned by reviewing past research that was flawed. This practice enhances organizationallearning substantially.
However, as the reader already knows, there is more information in our contemporary environment available
than humanly possible to read and understand. Therefore, to be realistic, marketing information managers
must accept the fact that most organizational learning that takes place will probably occur throughinformation catching rather than information seeking. The information manager who enters the currentenvironment with expectations that his fellow workers will avidly adopt and use the company intranet,
reviewing all posted materials for the sole reason of learning more about the environment should probablyadjust her or his expectations.
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CEMENT DIVISION:-
Cementis the primary productofthecompanyand accounts foraround 90% oftheturnoverofthecompany. Thecompanyhas seven cement plants atfourlocations, namely, Satna CementWorks (SCW)and Birla Vikas Cement (BVC)at Satna (MadhyaPradesh), ChanderiaCement Works (CCW)and Birla Cement Works (BCW)at Chanderia (Rajasthan),DurgapurCement Works (DCW)and DurgaHitech Cement (DHC)at Durgapur(West Bengal)and Cement Grinding Unitat Raebareli (UttarPradesh).
The presentinstalled capacityofcementis 58.80 lacmetrictones perannum. Location wisedetails aregiven hereunder:-
MISSION & VISION
Mission:
To deliver superior value to our customers, shareholders, employees and society at large wiincreased focus on living by our values.
To providetechnologyand servicethrough sustained researchand development.
To attain leadership in developing, adopting and assimilating state-of-art technology fcompetitiveadvantage.
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Offered fullopportunities and challenges to develop individuallyenablingcareergrowth.
Encouraged toacquireknowledgetomeetthechallenges ofnew technologies and busineneeds in thechanging scenario.
Educated and guided to inculcate and practise right values as are nurtured by thorganization.
Vision:
To be a Globally Benchmarked Organisation in White Cement, through our value-added producwith continued focus on Quality and Customer Delight, and to have revenue of Rs.3000 crores bFY 2015.
To bea premiumglobalconglomeratewithaclearfocus on each business.
Ourvalues
IntegrityCommitmentPassionSeamlessnessSpeed
OBJECTIVES & OBLIGATIONS
Objectives:
To serve the national interests in the Product and related sectors in accordance anconsistent with Government policies.
Toearn areasonableateofon interest.
Tomaximizeutilization of theexisting facilities in order to improveefficiencyand increasproductivity.
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To worktowards theachievementof self-sufficiencyin thefield ofcementmarket by settinup adequatecapacityand to build up expertisein lyingofcrude.
Tofurtherenhance distribution networkforprovidingassured servicetocustomers througho
the country through expansion of reseller network as per Marketing Plan/ Governmeapproval.
Obligations:
Towards Customers and Dealers: To provide prompt, courteous and efficient servicand quality products atfairand reasonable prices.
Towards Suppliers: Toensue prompt dealings withintegrity, impartialityand courtesyan
promoteancillaryindustries.
Towards Employees: Develop their capability and advancement through appropriatrainingand carrierplanning.
Towards Community: To develop techno-economically viable and environment friendproducts forthe benefitofthe people.
Corporate Social Responsibilities:-
Educational Activities:-
SouthPoint School, Kolkata, West Bengal
M.P. Birla Foundation HigherSecondary School, Kolkata, West Bengal
M.P. Birla Shiksha Bhawan, Allahabad, UttarPradesh
M.P. Birla Industrial Training Institute, Rewa, MadhyaPradesh
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BirlapurVidyalaya, West Bengal
Birla Vikas Vidyalaya, Satna, MadhyaPradesh
Schoolat Chittorgarh, Rajasthan
Sarada Kanya Vidyapith, Barrackpore, West Bengal
M.P. Birla Foundation Veda SanskritPathshala, Bangalore, Karnataka
Medical Activities :-
BombayHospital, Mumbai, Maharashtra
Belle Vue Clinic, Kolkata, West Bengal
M.P. Birla Medical Research Centre at Birlapur, West Bengal and SatnMadhyaPradesh
Birla Vikas Hospital, Satna, MadhyaPradesh
BirlapurHospital, Birlapur, West Bengal
Dispensaryat Allahabad, UttarPradesh
Hindustan Medical Institution at Barrackpore, West Bengal
OtherPhilanthropic Activities :-
M.P. BirlaPlanetarium, Kolkata, West Bengal
Express Dairy, Behala, Kolkata, West Bengal
Joka Agricultural & Horticultural Society, Joka, West Bengal
SOCIALSERVICES:-
WaterFacilities in Satna & Chanderia.
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Roads & Cleanness Campaign with ZillaParishad in Chanderia.
CEMENT PLANT LOCATION OF BIRLA CORPORATION LTD
Plants OfBirla CorporationLimited ForCement Production:-
SatnaPlants:
Total capacity:15,50,000 tones.
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ChanderiaPlants:
Total capacity:20,00,000 tonnes.
DurgapurPlant:
Capacity:6,00,000 tonnes
Anew cement plant isestablishedinDurgapur,whichisDurgapurHigh-tech cement.This plant has the capacity of10,00,000 tonesofcement production.Thus total production capacity at Durgapuris16,00,000 tones peryear.
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RaebareliPlant:
Total Capacity 6, 30,000 tones peryear
Futureofthe Cement Industry:
Government policies have affected the growth of cement plants in India in various stages. Thcontrolon cementforalongtimeand then partial decontroland then total decontrolhas contributeto the gradual opening up of the market for cement producers. The consumption of cementdetermined byfactors influencingthelevelofhousingand industrialconstruction, irrigation projectand roads and layingofwatersupplyand drainage pipes etc.
The level and growth of GDP and its sectoral composition, capital formation, developmeexpenditure, growthin population, levelofurbanization, etc, in turn, determinethesefactors. Butthdomestic demand forcementis mainlyfromthehousingactivities and infrastructure development.
Thegovernment paved the wayfortheentryofthe private sectorin road projects. Ithas amende
theNationalHighway Acttoallow privatetollcollection and identified projects, bridges, expresswaand big passes for private construction. The budgetgave substantial incentives to private sectconstruction companies. Ongoing liberalization will lead toan increase in industrial activities aninfrastructure development. So it is hoped that Indian cement industry shall boom again in nefuture.
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SWOT ANALYSIS OF BIRLA CORPORATION LIMITED
Strengths:-
1. Theindustryis likelytomaintain its growthmomentum and continuegrowingatabout 9 10% in theforeseeablefuture.
2. Government initiative in the infrastructure sector suchas the commencementof the seconphase of the National Highway Development project, freight carriers, rural roads andevelopmentofthehousing sector, arelikelyto bethemain drivers ofgrowth.
3. Measures initiated by the Government towards public-private partnership for removinbottleneckin the developmentofinfrastructurein thecountry, augurs wellfortheindustry.
4. In thecomingfew years the demand forthecement will increase which will be booming newforcementmanufactures.
5. Forthe purposeofthe packingofessentialitem, jute products whichareenvironmentfriendand biodegradablecharacteristicareconsidered as bestoption.
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Weaknesses
1. Highcapitalcostand investmentcostforeachand every project.
2. Thecomplex Excise Duty structure based on thecategoryofbuyerand end useofthecemehas caused atlotofconfusion in theindustry.
3. The recent ban on exportof cement clinker would increase theavailabilityof cement in thdomesticmarket, whichin turn would put pressureon cement prices.
4. Themajorconcern fortheindustryare:
y Continuous increasein labourcost.
y Shortageofskilled labourers.
y Appreciation ofrupees againstforeign currencies.y Procuringoflimestonemines ateconomical pricean entry barrier.
Opportunities
1. Adequatesupport from the Government isvery essential to promote businessactivities
2. Increase in the production and sell of cement at different plants have increased thturnoverof the company.
3. It would bein theinterest ofboth thegovernment and theindustry towork togetherwiaim tostreamline theindirect taxregimeandkeep the pricesof theinputssuchas coundercontrolso that the cement price can be maintainedat reasonablelevels.
4. Despite slightly lower economic growth, the construction and infrastructure sectorexpected torecordhealthy growth,whichaugurswellforcement industry.
5. The modernization, productivity improvement and cost control measureswill improv
the performanceofthedivisionin times to come.
Threats
y Therecent moves by the Central Government in making theimport ofthe cement totalduty free,isa causeoffortheIndian cement industry.
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y Furtherrecent changesin the Central ExciseDuty structure by way ofintroductionofmultipleslabsofExciseDuty isalsoa causeofworry for theindustry.
y Almost all the majorplayersin theindustry haveannouncedsubstantialincreasein the
capacity and the possibility ofoversupply situation cannot beruledout.
y Increasedrailway freight, coal pricesanddispatch bottlenecksonaccount oftruckLoadingrestrictionsimposed by variousState Governments
y Scarcity ofgoodquality Coalissomeotherfactorswhichare causeofconcernfor theindustry.
Bibliography
AnnualReportsofBCL06-07 & 07-08.
MaheshwariS.N., Financial Management,Sultan Chand & Sons,2003.
Agarwal M.R., Financial Management, GarimaPublications,2008.
KishoreRavi, Financial Management,Taxmanns,2004.
BhattacharyaA.k., FinancialAccounting,PHI,2004.
Tandon J.K., Financial Management,Shivam,2006
Webliography
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www.birlacorporation.com
www.cma.com
www.16anna.com