Awanish project

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A

SUMMER TRAINING REPORT

ON

BRAND POSITIONING OF AMBUJA

CEMENT WITH SPECIAL REFERENCE TO

BILASPUR

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Session: 2010 2011

Guided by:

Submitted by:

Mr. Abhishek AgnihotriTerritory Sales OfficerAmbuja Cement

Awanish Kumar SinghMBA 2nd SemReg. No.:- P09BA015


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I am really thankful to Mr. Abhishek Agnihotri (Territory Sales Officer)

who has helped me in my project. The project could never have seen

the light of the day if it was not for these people.

I finally thank to one and all, who directly and indirectly have beensupporting me during my summer training.

Awanish Kumar Singh

Declaration

I Awanish Kumar Singh , a student of MBA 3rd Sem in the year 2010-11, hereby declare

that , I have undergone training at Ambuja Cement Ltd. This report is an original work

carried out by me and the report has not been submitted to any other university for the

award of any degree or diploma.

Date :

Place : Awanish Kumar

Singh

MBA 3rd Semester

2010-2011


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Table of Contents

Page No.

1. Introduction 06-07

2. About the Marketa. Global Scenario

b. Market in India .... .07-08

3. An Overview of

a. Ambuja Cement Ltd. 08-25

4. Methodology & research...25-26

5. Analysis & Interpretation...26-37

6. Finding & observation 37-38


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7. Suggestion38

8. Conclusion.39

9. Executive Summary.39

10. Annexure 40-42

11. Bibliography....42

INTRODUCTION

Cement Industry

Cement Industry originated in India when the first plant commenced production in 1914at Porbandar, Gujarat. The industry has since been growing at a steady pace, but in the

initial stage, particularly during the period before Independence, the growth had been

very slow. Since indigenous production was not sufficient to meet the entire domestic

demand, the Government had to control its price and distribution statutorily. Large

quantities of cement had to be imported for meeting the deficit. The industry was

partially decontrolled in 1982 and this gave impetus to its pace of growth. Installed

capacity increased to more than double from 27 million tons in 1980-81 to 62 million

tons in 1989-90.

The cement industry responded positively to liberalization policy and theGovernment decontrolled the industry fully on 1st March 1989. From 1991 onwards

cement industry got the status of a priority industry in schedule III of the industry policy

statement, which made it eligible for automatic approval for foreign investment up to

51% and also for technical collaboration on normal terms of payment of royalty.


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After the globalization and liberalization of Indian economy, the cement industry

has been growing rapidly at an average rate of 9 percent. The country is now the

second largest producer of cement in the world next only to China with a total capacity

of 217.80 million tones. Additionally, in the last two decades, the industry has

undergone rapid technological up gradation and growth, and now, some of the cement

plants in India are comparable 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 the demand for the whole country. Now the tables have

turned as India has started exporting large quantities of cement and clinker to

Bangladesh, Nepal, Sri Lanka, Maldives, Mauritius, Africa, Seychelles, Burma, UAE,

and Singapore etc

India is today the second largest producer of cement in world with an installed

capacity of close to 217.80 million tons per year. 95 % is consumed domestically and

only 5% is exported. Demand is growing at more than 10 % per annum. More than 90 %

of production comes from large cement plants. There are a total of 146 large and more

than 350 small cement manufacturing units in the country. More than 80% of the

cement- manufacturing units use modern environment friendly dry process.

In the cement industry there are two sectors one consisting of large plants and

the other consisting of mini cement plants. A factory with an installed capacity

exceeding 2,97,000 tones per annum (900 tons per day) is a large plant and with

capacity up to and including 2,97,000 tons is a mini cement plant. At present, there are

146 large plants and about 365 mini cement plants. Since mini cement plants are

scattered all over the country with a number of associations representing different types

of processes, sizes etc. and some of them are even tiny units, it has not been possibleto obtain correct data of this sector. The present installed capacity of large plants is

217.80 million tons and the estimated capacity of mini cement plants is 11.8 million

tons.

The Indian cement Industry not only ranks second in the production of cement in

the world but also produces quality cement, which meets global standards. However,

the industry faces a number of constraints in terms of high cost of power, high railway

tariff; high incidence of state and central levies and duties; lack of private and public

investment in infrastructure projects; poor quality coal and inadequate growth of related

infrastructure like sea and rail transport, ports and bulk terminals. In order to utilize

excess capacity available with the cement industry, the government has identified the

following thrust areas for increasing demand for cement:


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Housing development programmers & Promotion of concrete highways and roads;

Use of ready-mix concrete in large infrastructure projects;

Construction of concrete roads in rural areas under Prime Ministers Gram Sadak

Yojana.

In India, the different types of cement are manufactured using dry, semi-dry, and wet

processes. In the production of Clinker Cement, a lot of energy is required. It is

produced by using materials such as limestone, iron oxides, aluminum, and siliconoxides. Among the different kinds of cement produced in India, Portland Pozzolana

Cement, Ordinary Portland Cement, and Portland Blast Furnace Slag Cement are the

most important because they account for around 99% of the total cement production in

India.

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 of different 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. The production of all these cement varieties is according to the

specifications of the cement.

CURRENT SCENARIO

The Indian cement industry is the second largest producer of quality cement, which

meets global standards. The cement industry comprises 130 large cement plants and

more than 300 mini cement plants. The industry's capacity at the end of the year

reached 188.97 million tons which was 166.73 million tons at the end of the year 2006-

07. Cement production during April to March 2007-08 was 168.31 million tons as

compared to 155.66 million tons during the same period for the year 2006-

07.Despatches were 167.67 million tons during April to March 2007- 08 whereas 155.26


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during the same period. During April-March 2007-08, cement export was 3.65 million

tons as compared to 5.89 during the same period.

Cement industry in India is currently going through a consolidation phase. Some

examples of consolidation in the Indian cement industry are: Gujarat Ambuja taking a

stake of 14 per cent in ACC, and taking over DLF Cements and Modi Cement; ACC

taking over IDCOL; India Cement taking over Raasi Cement and Sri Vishnu Cement;

and Grasim's acquisition of the cement business of L&T, Indian Rayon's cement

division, and Sri Digvijay Cements. Foreign cement companies are also picking up

stakes in large Indian cement companies. Swiss cement major Holcim has picked up

14.8 per cent of the promoters' stake in Gujarat Ambuja Cements (GACL). Holcim's

acquisition has led to the emergence of two major groups in the Indian cement industry,

the Holcim-ACC-Gujarat Ambuja Cements combine and the Aditya Birla group through

Grasim Industries and Ultratech Cement. Lafarge, the French cement major hasacquired the cement plants of Raymond and Tisco. Italy based cement has acquired a

stake in the K.K. Birla promoted Zuari Industries' cement plant in Andhra Pradesh, and

German cement company

Heidelberg Cement has entered into an equal joint-venture agreement with S P Lohia

Group controlled Indo-Rama Cement.

Ambuja Cements

Ambuja Cements Limited was earlier knownas Gujarat Ambuja Cements Limited (GACL). The company was set up in 1986. In thisshort span Ambuja Cements has achieved massive growth and presently, the totalcement capacity of the company is 16 million tonnes. The company has threesubsidiaries, viz, Ambuja Cement Rajasthan Limited (ACRL), Ambuja Cement EasternLimited (ACEL) and Ambuja Cement India Limited (ACIL). Ambuja also has a strategicinvestment in ACC through its subsidiary (ACIL).

Ambuja Cements is the most profitable cement company in India, and the lowest costproducer of cement in the world. One of the major reasons that Ambuja Cements is thelowest cost producer of cement in the world is its emphasis on efficiency. Powerconsists over 40% of the production cost of cement. The company improved efficiencyof its kilns to get more output for less power. Thereafter Ambuja Cements set up acaptive power plant at a substantially lower cost than the national grid. The company


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sourced a cheaper and higher quality coal from South Africa, and a better furnace oilfrom the Middle East. As a result, today, the company is in a position to sell its excesspower to the local state government.

Ambuja cement is the first company to introduce the concept of bulk cement movement

by sea in India. This resulted in speedier transportation and brought many coastalmarkets within easy reach. Ambuja Cements has a port terminal at Muldwarka, Gujarat.It is an all weather port that handles ships with 40,000 DWT. The port has a fleet ofseven ships with a capacity of 20500 DWT to ferry bulk cement to the packaging units.The company has bulk cement terminals at Surat, Panvel, and Galle. The Surat terminalhas a storage capacity of 15,000 tonnes and Panvel terminal has a storage capacity of17,500 tonnes. Both the terminals have bulk cement unloading facility. The port atGalle, 120 km from Colombo, Sri Lanka, handles million tonnes of cement annually.

MEMBERS OF THE BOARD

Mr SURESH NEOTIA, co-promoter and Chairman of Ambuja Cements Limited, is a businessmanand industrialist of repute. He is currently a member of the Central Board of the Reserve Bank ofIndia. He is also known for his association with numerous cultural institutions as well as charitableorganisations The President of India conferred upon him the Padma Bhushan in the year 2008.

Mr NAROTAM SEKHSARIA, an industrialist reputed for his business acumen, is the main Promoterof Ambuja Cements Ltd. He is known to have created new benchmarks in the cement industry withhis path breaking innovative thinking. He is presently the Chairman of ACC Ltd. and the ViceChairman of Ambuja Cements Ltd.

Mr VINOD NEOTIA, a Co-Promoter of Ambuja Cements Ltd. played a critical role in thedevelopment of the company since its inception. He is associated with several business andcharitable organisations. He is the Chairman of Bhagirathi Neotia Woman and Child Care Centre,Kolkata, and is also the Chairman of Macmet India Ltd.

Mr A L KAPUR, closely associated with the Cement industry for more than three decades, ispresently the Managing Director of Ambuja Cements Ltd. He has previously held positions onBoards of several large Corporates. He was also the President of Cement ManufacturersAssociation (CMA), Chairman of the Board of Governors of the National Council for Cement andBuilding Materials (NCBM) and Chairman of the Development Council for the Cement Industry.


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Mr B B TANDON, IAS (RETD.), a retired IAS Officer, (1965) of Himachal Pradesh Cadre. He retiredas the Secretary-Personnel, Government of India. He also served as Secretary-Mines during hiscareer. He has been the Chief Election Commissioner of India. Presently, he is on the Board ofvarious prominent organisations.

Mr P K LAHERI, IAS (RETD.), a retired IAS officer (1969) of Gujarat Cadre, retired as ChiefSecretary in March 2005. Mr. Laheri served as CMD of Sardar Sarovar Narmada Nigam Ltd.,Gandhi Nagar. He worked on many portfolios such as Industry, Education, Information, WaterSupply, Fashion, Tourism, and Rural Development during his career.

Mr R S MANN, IAS (RETD.), a retired IAS Officer (1965) of Punjab Cadre, retired as the ChiefSecretary of Punjab in 2000. During his career he held prominent posts viz. Secretary-Personnel,Secretary-Housing of Punjab. He is currently associated with various social institutions andorganisations.

Mr SHARADCHANDRA KALE, IAS (RETD.), a retired IAS officer (1963) of Maharashtra Cadre, hasheld high offices in his career including the position of the Secretary of important departments in theState of Maharashtra. He has also served as the Additional Chief Secretary (Planning Dept.), the

Chairman of Mumbai Port Trust and Chairman of the Reserve Bank of India (Services Board).

Ms PADMINI SOMANI, Founder Director of Salaam Bombay Foundation, has represented India atvarious international forums on tobacco control. A patron of art, she also takes keen interest inorganising dance and cultural programmes. She is a graduate from the London School of Economicsand has an M.Sc. in Financial Economics from University of London, U.K.

Mr V K JAIN, IPS (RETD.), a retired IPS Officer (1958) of U.P. Cadre, was the Director General ofPolice in U.P. Thereafter he held various important portfolios including the offices of the SpecialSecretary (ISP), the Home Ministry, Special Secretary, the Department of J&K Affair, Government ofIndia and a Member National Security Advisory Board. He is currently also a Member of NationalDisaster Management Authority.

Ms PEARL TIWARI, graduated from the prestigious Tata Institute of Social Sciences, Mumbai,where she also served as a faculty for 2 years. Currently a Vice President (CSR) inAmbujavCements Limited, she has been associated with the developmental sector in India for over25 years. She is particularly sensitive to issues of social responsibility.

About the company

With a total production capacity of 15.5 million tones of cement, the Ambuja CementGroup has eight plants across seven States of India. The total workforce employed bythe Group is around 4,500 people. Taking into consideration the number of secondarystakeholders (family members, truckers and the migrant labor community in the vicinityof the operations), the reach of Ambuja Cement is significantly larger than its workforce.


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Ambuja Cements workforce has regular interface with the thousands of truckersoperating at Ambujas plant locations. Another high risk group is a sizable number ofmigrant workers living in the same environment.

Project progress as of January 2006 (six month progress report)

The program was launched in Ambuja Cement in July 2005. The program was startedsimultaneously at 8 factory locations of Ambuja Cements:

Ambuja Nagar (Gujarat) Darlaghat (Himachal Pradesh) Chandrapur (Maharashtra) Rabriyavas (Rajasthan) Sankrail (West Bengal) Bhatapar (Chattisgarh) Ropar & Bathinda (Punjab)

Approximately Rs. 450,000 have been received from IFC as the first installment of thegrant. The Ambuja Cement Foundation is supporting Ambuja Cement to implement theprogram.

The following detailed progress report on the project comes in part from asupervision visit at the Ambuja Cement plant at Darlaghat (Himachal Pradesh) onJanuary 30, 2006.

Darlaghat in Himachal Pradesh is the single largest production site for Ambuja Cement;the factory is isolated, settled in a small village of approximately 2,000 inhabitants. Thefactory employs about 1,000 employees, virtually all men, and attracts daily about 900trucks, i.e. close to 2,000 truckers and cleaners/helpers (all males also) transit in thearea daily. A small vibrant community of mechanics, dhabas (i.e. small restaurants andconvenience shops), and tyre distributors resides literally at the doors of the plant.Employees are housed in the factory compounds, in single family apartments or grouphostels spread over several hectares.

Project management and infrastructure

A Core Committee of 3 members was constituted to oversee the implementation

of the program. The committee is headed by Mr. V. K. Jain (Director, AmbujaCement Foundation), and also includes Ms. Pearl Tiwari (General Manager,Community Development for Ambuja Cement) and Mr. Vishal Bhardwaj(Regional Program Coordinator, Ambuja Cement Foundation). Mr. Bhardwaj hasalso been designated nodal officer (Program Coordinator) for the program.

A Project Monitoring and Implementation Committee (PMIC) is in place at eachproject site, and is championed by the General Manager. Other members from


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the PMIC include Heads of Departments, one of the Master Trainers, and thelocal Ambuja Cement coordinator (Sameer Sharma at Darlaghat). The PMICmeets monthly.

Baseline

A knowledge, attitude, behavior and practice (KABP) survey was undertaken atall of the 8 program locations at the beginning of the program. The study wouldnot only assist the program planning, it would also be a tool to evaluate theprogram after it is completed.

A sample size of 510 people was drawn from all locations (employees); about400 truckers and migrant workers were also surveyed. The enumerators (i.e.employees in charge of administering the KAPB survey questionnaires in theworkforce) were trained centrally with ILOs assistance to maintain uniformity ofapproach.

The data collected from all locations was then collated. Although the findings ofthe survey are available now, a detailed report is being prepared by ILO and willbe available in February 2006. The KAPB survey was undertaken in cooperationbetween the Ambuja Foundation and ILO, hence a significant saving on the costof the baseline study previously budgeted in the project proposal.

Internal advocacy towards senior management

The program began with advocacy workshops conducted at all locations by theCore Committee. The objective was to sensitize the top management at eachproduction site about the program launch and to advocate in favor of the need toimplement such a program.

Eight workshops were organized, which were attended by all General Managersand the Heads of Departments.

Prior to these, a letter was also sent by the Managing Director of Ambuja Cementto all General Managers advising them to put their best foot forward whileimplementing the program.


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Gujarat Ambuja Cement PlantsName of the Company Location State Process Used

Gujarat Ambuja Darlaghat Himachal Pradesh

Gujarat Ambuja (G) Ropar Punjab Grinding Unit

Gujarat Ambuja (G) Bhatinda Punjab Grinding Unit

Ambuja Cement Raj. Ltd. Pali Rajasthan Dry

Ambuja Cement Kodinar Gujarat Dry

Ambuja Eastern Sankrail West Bengal Grinding Unit

Ambuja Eastern- CTG Bhatapara Chhattisgarh Dry

Ambuja Cements Limited was set up in the late 80s. The cement industry presentedan opportunity of steady growth and ethical competition to the promoters.

However, a decade later, it became one of worlds most efficient cement companiesproducing the finest cement in the world at the lowest cost. While adhering to the moststringent international pollution-control norms.


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Today, Ambuja is the 3 rd largest cement company in India, with an annual plantcapacity of 16 million tonnes including Ambuja Cement Eastern Ltd. and revenue inexcess of Rs.3298 crores.

More importantly, its plants are some of the most efficient in the world. With

environment protection measures that are on par with the finest in the developed world.

But the companys most distinctive attribute is its approach to the business.

Ambuja believes its most valuable assets arent cement plants.

They are the people who run the plants.

This unique vision is encapsulated in the companys homegrown philosophy of givingpeople the authority to set their own targets, and the freedom to achieve their goals.

Its called I can

This simple vision has created an environment where there are no limits to excellence,no limits to efficiency. And has proved to be a powerful engine of growth for thecompany.

As a result, Ambuja has consistently raised the bar in all aspects of the cement industry.

Be it transportation, plant efficiency, brand building or human resource development.

Take a look:

First plant set up in record time

When Ambuja set up its first plant in 1986, the accepted time period for installing a plantwas 3 years.

Ambuja, did it in less than 2 years. And with a significantly lower capital expenditure.

In 1993 the company went a step further and bettered its own record. Ambuja's secondplant was installed in a mere 13 months- the quickest time for setting up a one milliontonne cement plant.

A whole new way of transporting cement

In the early 90s, almost all cement in India travelled by rail or road. And in bags. A modethat involves deterioration of both, the quality and volume of cement.
http://www.gujaratambuja.com/cement.htmhttp://www.gujaratambuja.com/cement.htmhttp://www.gujaratambuja.com/cement.htm


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In 1993, Ambuja Cement set up a complete system of transporting bulk cement via thesea route.Making it the first company in India to introduce bulk cement movement by sea. Othersfollowed and today, about 10% cement travels by this new route.

The facility comprises: A dedicated port at the Gujarat plants, capable of berthing40,000 DWT vessels, three bagging terminals at Mumbai, Surat and Sri Lanka, andseven special bulk cement vessels.

This capability has enabled us to supply fresh cement to many coastal markets domestic and international.

Branding a commodity

Cement is a commodity, sold largely on price. Ambuja Cement was the first company tocreate a brand out of cement and command a premium.

It was also the first to introduce a special cell, providing technical services to consumersand masons. Today, this has become the norm in cement marketing.

The trick of course was to provide a consistently high quality of cement, backed byexcellent service. This was reinforced by a strong dealer network.

The result is that customers are ready to pay 2-3% premium for Ambuja Cement for thevalue they receive. Ambuja Cement is the top brand in Western, Northern, Central andEastern India.

Exports

Ambuja Cement exports almost 17% of its production in a very competitive internationalenvironment. For the last ten years, Ambuja Cement remains Indias highest exporterof 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.

The Environment


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From the outset, Ambuja has believed that a cement plant cannot flourish at the cost ofthe environment. Thats why it adheres to the most rigorous international environmentalnorms.

The pollution levels at all its cement plants are even lower than the rigorous Swiss

standards of 100 mg/NM 3.

At the Gujarat plants, surface miners have been employed to scrape the surface of themines. Thus ensuring that all the mining is totally blast free. There is no noise or airpollution.

Similarly at the Himachal Pradesh plant, Ambuja has employed techniques that havemade mining absolutely safe and pollution free.

Not surprisingly then, the company has consistently won awards for its pollution freeplants. Awards as prestigious as the National Award for Outstanding Pollution Controland The Eco-Gold Star of Tata Energy Research Institute (TERI).

Corporate Social Responsibility

In 1991, the company set up Ambuja Cement Foundation to trigger all-rounddevelopment of the people around its cement plants. The Foundation decided totraverse the difficult but more productive path of helping the people to help themselves.With great dedication and commitment, the foundation energized the local people toparticipate and own their development process. It became a facilitator and catalyst,rather than a one-time fund provider. It developed easily replicable and sustainablemodules for water management, sustainable agriculture and healthcare.

All this effort in discharging its social responsibility has earned the company recognitionacross Asia.

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 cementtransportation by sea.

Introduced complete blast free limestone mining by using the surface miner in limestonemining for the first time in India.

Created water reservoirs in used up mines and raised the water table in arid areas.


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Our plants have achieved the lowest pollution levels comparable with the moststrongest Swiss standards.

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.

Technical Details

Established 1986.

Total Capacity 15 million tonnes.

Infrastructure Dedicated port at Gujarat. Capable of berthing 40,000 DWTvessels with carrying capacity of 20,000 tonnes.

Packing terminals at Mumbai, Surat and Sri Lanka. Seven dedicated bulk cementships.

Ambuja CementsAmbuja Cements Limited was earlier known as Gujarat Ambuja Cements Limited (GACL). The

company was set up in 1986. In this short span Ambuja Cements has achieved massive growth

and presently, the total cement capacity of the company is 16 million tonnes. The company has

three subsidiaries, viz, Ambuja Cement Rajasthan Limited (ACRL), Ambuja Cement Eastern

Limited (ACEL) and Ambuja Cement India Limited (ACIL). Ambuja also has a strategic

investment in ACC through its subsidiary (ACIL).

Ambuja Cements is the most profitable cement

company in India, and the lowest cost producerof cement in the world. One of the major reasons that Ambuja Cements is the lowest cost

producer of cement in the world is its emphasis on efficiency. Power consists over 40% of the

production cost of cement. The company improved efficiency of its kilns to get more output for

less power. Thereafter Ambuja Cements set up a captive power plant at a substantially lower

cost than the national grid. The company sourced a cheaper and higher quality coal from South

Africa, and a better furnace oil from the Middle East. As a result, today, the company is in a


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position to sell its excess power to the local state government.

Ambuja cement is the first company to introduce the concept of bulk cement movement by sea

in India. This resulted in speedier transportation and brought many coastal markets within easy

reach. Ambuja Cements has a port terminal at Muldwarka, Gujarat. It is an all weather port that

handles ships with 40,000 DWT. The port has a fleet of seven ships with a capacity of 20500DWT to ferry bulk cement to the packaging units. The company has bulk cement terminals at

Surat, Panvel, and Galle. The Surat terminal has a storage capacity of 15,000 tonnes and

Panvel terminal has a storage capacity of 17,500 tonnes. Both the terminals have bulk cement

unloading facility. The port at Galle, 120 km from Colombo, Sri Lanka, handles million tonnes of

cement annually.

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 100mg/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.

Ambuja Cement net profits rise on lower input cost

Holcim Group companies, ACC and Ambuja Cement, have posted a strongperformance for the quarter ended September 30. While ACC showed a 60 percent growth in net profit, Ambuja Cements rose 27 per cent.

ACCs turnover rose nine per cent to Rs 2,077 crore (Rs 1,900 crore) in thequarter under review. Cement production was up three per cent to 5.01 milliontonnes (mt).


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Total expenditure fell three per cent to Rs 1,511 crore (Rs 1,551 crore) on theback of a 17 per cent drop in power and fuel cost at Rs 362 crore (Rs 441 crore)and 13 per cent in other expenditure to Rs 412 crore (Rs 475 crore).

The substantial dip in coal prices helped reduce production cost and make up forthe fall in cement prices in various regions, said an analyst.

The benefit of lower coal prices in reducing our manufacturing cost was partially

offset by an increase in the cost of raw materials such as gypsum, slag and flyash coupled with higher diesel prices and royalty on limestone, said Mr SumitBanerjee, Managing Director, ACC. Revenue from ready mix concrete businessfell 13 per cent to Rs 118 crore (Rs 135 crore) which recorded a net loss of Rs 17crore (Rs 21 crore). Profit from the cement business was up 50 per cent to Rs625 crore (Rs 418 crore) and revenue rose 10 per cent to Rs 1,969 crore (Rs1,791 crore).

Ambuja Cement reported a 16 per cent rise in sales at Rs 1,611 crore (Rs 1,387crore). The company produced 4.1 million tonnes (3.9 mt) of cement in thequarter. Sales in the domestic market were up nine per cent to 3.6 mt (3.9 mt),while exports halved to 1.50 lakh tonnes (3 lakh tonnes). The company earned

Rs 17 crore by way of selling surplus captive power. Cement demand in the central and eastern regions was particularly strong, while

the South saw a sharp slowdown, mainly in Andhra Pradesh, said Mr A.L.Kapur, Managing Director. Export markets have turned weak with orders hard tocome by and prices still unattractive, resulting in diversion of material to thedomestic market, he added. Ambuja Cement has commissioned a 15 MW powerplant at Maratha in Maharashtra while the second phase of captive powerexpansion at the Ambujanagar plant is almost complete.

Pricing pressure has begun to appear in certain markets, particularly in thesouthern and central regions, and may persist into 2010. The recent hike indomestic coal prices will also put additional pressure on operating margins, said

Mr Kapur. Shares of ACC and Ambuja Cement on BSE were down two per cent each at Rs

745 and Rs 88 .


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Ambuja Cements was set up in 1986. In the last decade the company has growntenfold. The total cement capacity of the company is 18.5 million tonnes.

Its plants are some of the most efficient in the world. With environment protectionmeasures that are on par with the finest in the developed world.

The company's most distinctive attribute, however, is its approach to the business.Ambuja follows a unique homegrown philosophy of giving people the authority to settheir own targets, and the freedom to achieve their goals. This simple vision has createdan environment where there are no limits to excellence, no limits to efficiency. And hasproved to be a powerful engine of growth for the company.

As a result, Ambuja is the most profitable cement company in India, and one of thelowest cost producer of cement in the world.

Brand Positioning- Definition and Concept

Brand positioning refers to target consumers reason to buy your brand in

preference to others. It is ensures that all brand activity has a common aim; is guided,

directed and delivered by the brands benefits/reasons to buy; and it focuses at all

points

of contact with the consumer.

Brand positioning must make sure that:

Is it unique/distinctive vs. competitors ?

Is it significant and encouraging to the niche market ?

Is it appropriate to all major geographic markets and businesses ?

Is the proposition validated with unique, appropriate and original products ?

Is it sustainable - can it be delivered constantly across all points of contact

with the consumer ?


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Is it helpful for organization to achieve its financial goals ?

Is it able to support and boost up the organization ?

In order to create a distinctive place in the market, a niche market has to be carefully

chosen and a differential advantage must be created in their mind. Brand positioning is

a medium through which an organization can portray its customers what it wants toachieve for them and what it wants to mean to them. Brand positioning forms

customers views and opinions

Positioning is the key of marketing strategy. A strong brand positioning directs

marketing strategy by explaining the brand details, the uniqueness of brand and its

similarity with the competitive brands, as well as the reasons for buying and using that

specific brand. Positioning is the base for developing and increasing the required

knowledge and perceptions of the customers. It is the single feature that sets your

service apart from your competitors. For instance- Kingfisher stands for youth and

excitement. It represents brand in full flight.

Defining Values and Principle

You already know how to do this

Your values and principle are part of your Org and Brand drivers!!!

Keller calls principle Brand Mantra

Your Values, Principle, and position all are related

Keller says that associations are values, but we have a stricter definition of associationsfrom the IBM.

Brand Positioning Strategy

Brand positioning is an essential element of a winning branding strategy. Positioning

simply refers to how your product or service is viewed in the minds of prospects and

customers relative to other products or services available in your niche.

The termpositioning has two connotations: a vertical and a horizontal one. In terms of

the vertical connotation, the term refers to the order in which your product ranks relative

to the products of your competitors in the minds of your customers in your industryniche.

(For example, which product comes to mind first when I say the wordcola?)

In terms of the horizontal connotation, the term refers to the qualities and attributes your

product represents in the mind of your customers, again relative to your competitors.


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While you cannot directly control the ranking that your product or service enjoys in the minds of

your customers, you can influence how you position the product in terms of qualities and

attributes. That is, by properly positioning your product relative to your competitors in the minds

of your customers, you will have much more control over how your brand is perceived in the

marketplace. You will then effectively have a guide or map for how to execute your branding

strategy.

Effective Brand Positioning

No matter how long youve been in business, chances are good that you are engaged in

developing and promoting your brand positioning strategy. Youll invest plenty of time in the

process of evaluating your products or services in terms of market share, sales and customer

base and comparing this information to that of your competitors. Youll work to determine how

your customers perceive your business and its major offerings and use the detailed findings to

establish your business at the proper place within that all important target market.

Your business position within the target market will determine your businesss degree ofsuccess. If you think you can maneuver into a more profitable place, do so by adjusting your

products or services to more closely match the desired position (known as re- positioning), or

pursue strategies that change customer perception of the products and services offered by your

competitors (de-positioning).

Here are some strategic tips that can help you to be as effective as possible during your brand

positioning process:

1. Understand brand positioning as fully as you can, especially in the way that it directly

affects your business. Businesses, especially smaller ones, are very diverse in their

needs

. Develop the most efficient method possible for gathering customer information.

Remember that youre trying to get inside their heads and back out again with an

unvarnished look at how they see your business in terms of the benefit that it provides

for them. You might consider questionnaires, phone surveys or online surveys and offer

a small bonus to compensate customers for their valuable time.

3. Determine which of your products and/or services are the most popular or powerful,

so that you can use them to build on or adjust your overall positioning strategy

4. Rank all of your products and/or services in terms of positive customer review and in

relation to those of your competitors.

5. List the most popular group of attributes that describe your business and products

from the viewpoints of your customers and combine them to reach your ideal vector


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the position in your target market from where your business can operate at the highest

possible level of strength.

6. Product-based businesses can complete the positioning process more easily than

service based businesses. After all, your customers can see, touch and watch

demonstrations of your products to see how they work and visualize their benefits. Hereare some hints for exploring how customers perceive your business and its services

Create simulations, descriptions or case studies showing proven results.

Find out how customers view your services in terms of value, results and convenience.

7. Regardless of your business type, take the information about customer perception

that youve gathered, determine your top benefits and attributes and use them to

determine your current positioning and how far that point is from your ideal vector in the

marketplace Decide whether you are satisfied with the current positioning of your

business, or whether you need to change your strategy. Consider your target marketand decide if your business is positioned in such a manner that it maximizes every

opportunity for visibility in that market.

Finally, keep in mind that positioning can be either an active or passive process. If you

choose not to fully engage in it it will still take place. Dont give up the valuable

opportunity to monitor and influence the process and increase profitability

5 Factors of Brand Positioning

1. Brand Attributes

What the brand delivers through features and benefits to consumers.

2. Consumer Expectations

Competitor attributes

What the other brands in the market offer through features and benefits to consumers.

4. Price

An easily quantifiable factor Your prices vs. your competitors prices.

5. Consumer perceptions

The perceived quality and value of your brand in consumers minds (i.e., does your

brand offer the cheap solution, the good value for the money solution, the high-end,

high


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In order to Position a Brand

You must decide

Who the Target Consumer is

Who your main competitors are

How the Brand is similar to your competitors

How the Brand is different from your competitors

Where do you get this information?

Your BRAND INVENTORY!!

Brand Positioning

A good brand positioning help guide marketing strategy by clarifying the brands

essence but goals it help the consumer achieve and how it does so in a unique way.

The result of the positioning is the successful creation of a customer focused value

proposition, a cogent reason why the target market should buy the product.

Birla Corporation Ltd. (Cement Division) introduce their new product, SAMRAT, with the

value proposition of "Aajya kal majboot har pal" with PPC (Portland Pozolona Cement)

instead of OPC (Ordinary Portland Cement) main features of SAMRAT isCorrosionResistant

Work ability

Sulphate resistant

Low heat of hydration

Durabil ity

Less use of water

Seepage Resistant

Low Cracks in RCC

Fineness

Mass Concrete

Competitive Frame of Reference


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A starting point in defining a competitive frame of reference for a brand positioning is to

determine Category Membership- the products with which a brand competes and which

function as close substitute.

POD's are attributes or benefits consumer strongly associates with a brand, positively

evaluated, and believe that they could not find the same extant with a competitivebrand. Strong, favorable and unique brand associations that make up POD.

Point-of-Parity

POP's on the other hand, are associations that are not necessarily unique to the brand

but may in fact be shared with other brands. These types of associations come in two

basic forms:

1.Category

2.Competitive

Category POP's are associations consumers view as essential to be a legitimate and

credible offering within a certain product or service category. Competitive POP's are

associations designed to negate competitors' points-of-difference.

Choosing POP's and POD's

POP are driven by the needs of category membership (to create categ POP's) and the

necessity of negating competitors POD's (to create competitive POP's)

These are three key consumer desirability criteria for POD's-

1.Relevance

2.Distinctiveness

3.Believability

There are three key deliverability criteria

1.Feasibility

2.Communicability

3.Sustainability

RESEARCH METHODOLOGY


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Statement of problem:-

Objective of Research:-

The purpose of research is to discover answer to question through the application of

scientific procedures. The main aim of research is to find out the truth which is hidden &

which has not been discovered yet.

However, each research study has its own specific purpose. There are several common

objective of research as follow:-

To study the brand positioning of Ambuja Cement in the market.

To compare the major cement brands in terms of Price, Preference, Quality,

Packing and Color.

To compare the advertisement strategy of the various cement brands.

Research Methodology - Project Research Type

Descriptive Research

Data Sources

Primary Data

Research Approach

Survey Method

Research Instrument

Questionnaire

Data Analysis

Logical analysis

Sampling Procedure

Random Sampling

Sample Size

50 Respondents

Geographical Coverage

Bilaspur


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According to Phillip Kotler-

Marketing research is the systematic problem analysis, model building and fact finding

for the purpose improved decision making and control in the marketing of goods and

services.

In my project work I have used a questionnaires for market survey.

In my project work I have collected information from different stockist, dealer &

retailer.

According to them only a questioners is being filled out.

Data Collection method.

Questionnaire is being used for collecting a data from dealer & retailer. A questionnaire

consists of different attributes of different brands. A dealer & retailer has to answer

different question regarding price, sales volume, discount scheme and their feeling

towards different brands in the markets. We have to identify the consumer taste &

preferences towards different product & services. We have to know about the dealer &

retailer perception towards different brand in the market.

DATA ANALYSIS AND IMPLEMENTATION

Calculation

-Position of brand among various brands


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Position of brand can be calculated by calculating the Score. Score canbe calculated by dividing the sum of rank of brand given by its own brandscement selling stores/outlets with total number of brands store selling itsown brand of cement .

Score = Rank of brand given by its own Brands cement selling stores

Total number of brands store selling its own brand ofcement

Note- this formula is only used in attributes like order execution time,prices and schemes, timely communication by sales hierarch, TSOregular visit, Regular supply, Effective Sales meeting ,Shop advantagedisplay, Useful giveaways ,Better Godown handling, Effectiverelationship activity, TO regular visit, Technical services.

Minimum score- worst rank

Maximum score- best rank

Note -Quality of cement and Packaging of bags

Score = Rank of brand given by its other Brands cement sellingstores

Total number of brands store selling its other brand ofcement

Minimum score- worst rank

Maximum score- best rank

Order Execution time:

Order execution time is the time taken by the Company to deliver the cement after

placing an order from company.


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Brands Ultra-tech Lafarge Birla Gold Ambuja Acc

Score 3.81 2.18 2.51 3.18 2.12

Position/Ranking : 1st Ultra-tech

2nd Ambuja

3rd Birlagold

4th Lafarge

5th ACC

Regular Supply 365 days


Score 5.18 3.12 2.02 4.12 2.24


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Timely communication By TSO for Rate / Scheme.


Score 5.12 2.01 3.52 4.64 3


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TSO Regular Visit


Score 5.64 2 2.52 4.80 2.11


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Shop Advantage Display


Score5.84 3.64 3 4.9 2.1

Role of Sales Promoter


Score4.32 3.1 2 4.8 2.1


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Civil Engg. Visit / Useful


Score6 2 2.12 3.21 1.2


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Tech. Services Usefulness


Score5.9 2 2.12 4.32 2.9


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Bag Quality


Score

5.12 4 3.12 4.5 3.9


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Cement Quality


Score6.2 5.32 5.3 6 5.6


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SWOT Analysis of the organization

Strengths

Good reputation

Best Quality

High Performance

Proper channel network

Customer satisfaction

Weaknesses

Bad reach in rural market segment

Messages are not clear

Lack of proper communication with dealer&Retailer

Slow growth rate in the rural area

Opportunities

An unfulfilled customers need .

Arrival of new technologies.

Construction of buildings & dams , canal , over bridge in developing countries.

No trade Barriers.

Threats

Competition from different brand in the market

Entrance of new company in the market


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Other brands are selling in cheaper rate

Local brands are eating up into the market share.

New govt. policy

Other brands would you like associated with & why?

According to authorised dealer & Retailer & stockist, they all want to sale a

product of ULTRA-TECH. Other brands ,they will think according to their quality

,cost & the regular visit by T.S.O. & their Civil Engg.

Which company will dominate in the future & would you like stay with?

According to me ULTRA-TECH and ambuja is going to dominate in the

future.According to the perception of dealer&retailer they like to stay with both

these company only because of their good technical service and their goodapproach in their different attributes.

Who is the main influencer for brand selection?

Quality

Cost

Advertisement

Easily Availability

Types of Schemes

What is the best medium for cement advertisement?

Medium for

Advertisement

TV News Paper Hoarding Shop & wall

painting

Display

materials

others

Ranking 5 4 2 1 3 1

5-for Best

1-for worst


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Any other information would you like to provide.

In my opinion to increase a sales volume one must provide a better quality of

goods & services and deliver the goods at the right time in the target market to

the target customer.

OBSERVATION AND FINDING

Ultra-tech cement has captured the whole market in Bilaspur.

Due to their better quality of technical services is provided to the dealers and

retailers.

Due to their regular visit by their civil engg. at the time of roofing of houses of

customers.

As no other company is providing this type of services to dealers & retailers.

As Ultra tech cement is providing regular training to their dealers & retailers.

SUGGESTION

In marketing four ps plays an crucial role so the management of ambuja

cement should focus in this only i.e place, price ,product ,promotion.

A company should make a strong dealer in rural and urban areas so the

demand of customer can easily be fulfilled.

Provide attractive schemes to the dealer & retailer so the sales volume can

easily be increased.

Make advertisement as much as possible.

Regular visit should be done by T.S.O, CIVIL ENGG. of a company.

A company must provide a tour for dealer & retailer for the sale of this much

of M.T.


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Proper distribution channel should be made in rural areas.

A regular training should be given by a company as how to deal with

customer.

A product should be sold out at a reasonable rate.

Dispatch of product should be made out regularly 365days.

CONCLUSION

At last I want to conclude is that Ambuja Cement is having a good brand name in the

mind of a dealer, retailer as well as customer also.

To increase the sales volume a company must

provide more better service in all the attributes. As it has a brand name in the international

market as well as in the national market. As it holds a 2nd position in Bilaspur District.

EXECUTIVE SUMMARY

This project report is prepared as the partial fulfillment of two year degree programme of

MBA curriculum of Bharath University, chennai. This Research project is a compulsorypart of the academics. This research is done in the Third semester of the MBA program.

In this research, I have attempted the research about Brand Positioning. Positioning is

one of the key elements of modern marketing management (Kotler, 2000). The overall

purpose of this research is to indentify the Brand Position of Ambuja cement in Bilaspur

market. I have taken six major cement brands for this research. The whole research is

based on Dealer Authorised stockist &Retailer survey.


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ANNEXURE

S.NO CITY/TOW

N

FIRMS NAME DEALER/RET

AILER/

stockist

CEMENT USED CONTACT

NO.

01 Bilaspur Siddhi vinayak

trader

Deal

er

Birla gold 9981764544

02 Bilaspur Agrawal khad

bhandar

Deal

er

ambuja 9827117732

03 Bilaspur Kanhya steel Deal

er

ambuja 9300178971

04 Bilaspur Annapurna steel Deal

er

Lafarge 248775

05 Bilaspur Luthra sales Deal

er

Ultra-tech 930095523

4

06 Bilaspur Juneja traders retail

er

Ambuja 900953563

4

07 Bilaspur Mahamaya steel retail

er

U-T,Lafar.,amb 930067073

5

08 Bilaspur Shri ram traders retail

er

U-T;Laf,B.G,ACC 9301516077

09 Bilaspur Vishal traders Deal

er


10 Bilaspur Prachi steel Deal

er

Ultra-tech 403619

11 Bilaspur Kushi Traders Retail

er

U-T, Lafarge 9303506765

12 Bilaspur Mahamaya cement Deal

er


13 Bilaspur Naresh traders Retai

ler


14 Bilaspur Muskan traders Retai

ler

U-T, Lafarge 9329576202


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15 Bilaspur Mahamaya traders Retai

ler

U-T,Lafar.,Birla 217808

16 Bilaspur New lakshmi steel Authour.sto

ck.


17 Bilaspur Shikha steel Dealer Ambuja 9907748581

18 Bilaspur Kalyan steels Retaile

r


19 Bilaspur Nayan agency Dealer Ambuja 9827994053

20 Bilaspur Ramesh steels Author.stoc

kist

Ultra-tech 407487

21 Bilaspur Daduram traders Retailer UT,Lafar,B.g,Ambuja 9907178090

22 Bilaspur Vinayaka

Enterprises

Retailer UT,Lafar,B.g,Ambuja 9300618345

23 Bilaspur Mahamaya Traders Retailer Ultra-Tech 9827947442

24 Bilaspur Meenakshi Traders Author.Stoc

kist

Ultra-Tech 9826966800

25 Bilaspur Mohan Lal Tara

Chand

Dealer Ambuja 222260

26 Bilaspur S.P.Steel Retailer UT,Lafar,Ambuja 9300810127

27 Akaltara Tulyshan Traders Author.Stoc

kist

Ultra-Tech 252090

28 Akaltara Ankur Traders Dealer Ambuja 9300665955

29 Bilaspur Vikas Ply Retailer UT,Lafar,Ambuja _

30 Bilaspur Saha Steel &

Hardware

Retailer UT,Lafar,Birla,Ambuj

a

9300940685

31 Bilaspur Maharashtra

Associates

Retailer Ultra-tech 420386

32 Bilaspur Krishak Sathi Retailer Ambuja 9630090004

33 Bilaspur Sahu Traders Dealer Lafarge 322484


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34 Bilaspur Singh Traders Author.Stoc

kist

Ultra-Tech 9300333171

35 Bilaspur Manish Traders Retailer Ultra-Tech 9993251047

36 Bilaspur Sharma Traders Retailer UT,Lafarge 9300688633

37 Bilaspur Shyam Traders Retailer Ultra-Tech 9827184297

38 Bilaspur Prakash traders Dealer Acc 9827940284

39 Bilaspur Purna traders Retailer UT,Lafar,Birla Gold 9300032622

6

40 Bilaspur Hanu Traders Retailer UT,Birla Gold,

Ambuja,Acc

402675

41 Bilaspur Tanu Steel Dealer Acc 9300052666

42 Bilaspur Chabra Marbles Dealer Ambuja 652022

43 Bilaspur P.S Saluja traders Dealer Ultratech 406301

44 Bilaspur Jai Ganesh traders Auth.

Stockist

Ultratech 243056

45 Bilaspur J.K.Dwivedi taders Dealer Ultratech 233996

46 Bilaspur Tiwari traders Dealer Ultratech 9827199123

47 Bilaspur Shriya steels Retailer Ambuja ,Birlagold 320016

48 Bilaspur Shukla traders Retailer Ambuja 9300489217

49 Bilaspur Shiv traders Retailer Lafarge 9827113979

50 Bilaspur Rajesh traders Retailer Lafarge, Birlagold 320090

BIBLIOGRAPHY

www.wikipedia.com


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www.google.com

www.yahooanswers.com

www.ambujacement.com
http://www.yahooanswers.com/http://www.yahooanswers.com/

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