MARKET POSITIONING OF WHITE CEMENT AND WALL PUTTY

A

Project Report

On

“MARKET POSITIONING OF WHITE CEMENT AND WALL PUTTY”

Submitted to

University of Pune

In partial fulfillment of the for Award of the degree of

Master of business Administration

By

Vikash Dubey, M.B.A 2nd year

Under the guidance of

“Proff Irfan Inamdar”

SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION

AND

COMPUTER APPLICATION

(Academic Years 2012- 2014)

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DECLARATION

I, the undersigned, hereby declare that the project report entitled “MARKET

POSITIONING OF WHITE CEMENT AND WALL PUTTY” written and

submitted by me to the university of Pune, in partial fulfillment of the requirement for

the award of the degree of “MASTER OF BUSINESS ADMINISTRATION” under

the guidance of “Prof. Irfan Inamdar”, is my original work except the topics on the

organizational profile and the conclusions drawn there in are based on the material

collected by my self

Place- Etawah (Kanpur) Vikash Dubey (M.B.A 3rd SEM)

Date- Roll No-

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Institute certificate

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Company certificate

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ACKNOWLEDGEMENT

I take this opportunity and privilege to express my deep sense of gratitude to

Professor M.N.Navale, Honorable founder President, Dr(Mrs.) S.M. Navale , Founder

Secretary, The Sinhgad Technical Education Society, Pune and Dr. Parag kalkar,

Director SIBACA .They have been a source of Inspiration to me and I am indebted to

them for initiating me in the field of research .

I am deeply indebted to faculty Member, SIBACA (Irfan Inamdar), my research guide

at Sinhgad Institute of business Administration & Computer application, Lonavala

without whose help completion of the project was highly impossible.

I take this opportunity and privilege to articulate my deep sense of gratefulness to the

managing Director and staff of the ( J K white Cement Works)For the Timely help

and positive encouragement.

I wish to express a special thanks to all teaching and non teaching staff members of

Sinhgad institute of Business Administration& Computer Application, Lonavala for

their continuous support. I would like to acknowledge all my Family members,

relatives and friends their help and encouragement.

Place: SIBACA, LONAVLA

Date:

Vikash Dubey

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TABLE OF CONTAINS

Sr.

No

Heading Page no

1) Introduction 8

a) Porters Five Force Model for Cement Industry 17

b) SWOT Analysis for Cement Industry 19

2) Company Profile

a) About J.K 21

3) Product Profile

a) J.K White Cement 31

b) J.K Wall Putty 34

4) Project Detail 37

a) Project Title 37

b)

c)

Objectives

Research methodology

37

38

5) Data Analysis & Interpretation 42

6) Questionnaire Analysis 42

7) Findings and suggestion 55

8)

9)

Conclusion

Limitations

56

57

10

)

Bibliography 58

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EXECUTIVE SUMMARY

Title of the project “MARKET POSITIONING OF WHITE CEMENT & WALL

PUTTY” Itself suggests the gist of the project.

JK White Cement is a company, which manufactures white cement used for

crack proofing, water proofing, painting, and other decorative purposes. The

company has set an objective to maximize its market share, so there was a

need to know about the major competitors and explore the opportunities

existing in various segments of the market.

So this project was assigned to me to contribute towards the goal of this

organization as well as this was a good exercise from my learning point of

view.

The basic approach in this project is identifying major players dealing with

white cement & wall putty, what are the reasons that influence consumers and

seller’s preference.

To know the perception of the customer about the competitor’s product.

By using such information we can analyze market conditions and can make

our policies to acquire highest market share.

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INTRODUCTION

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CEMENT INDUSTRY

Sector structure/Market size

India is the world's second largest producer of cement with total capacity of 260

million tons (MT) as on April 30, 2012, according to the Cement Manufacture’s

Association. During May 2012, the cement production touched 14.50 MT as

compared to 13.28 MT in May 2011. The cement dispatches quantity was 14.21 MT

in May 2012 over 13.06 MT in the corresponding month in May 2011.

Future Trends

The cement industry is expected to grow steadily in 2012-2013 and increase

capacity by another 50 million tons in spite of the recession and decrease in

demand from the housing sector.

The industry experts project the sector to grow by 9 to 10% for the current

financial year provided India's GDP grows at 7%. India ranks second in

cement production after China.

The major Indian cement companies are Associated Cement Company Ltd

(ACC), J.K Cement Ltd, Grasim Industries Ltd, Ambuja Cements Ltd, and

Birla Cement.

The major players have all made investments to increase the production

capacity in the past few months, heralding a positive outlook for the industry.

The housing sector accounts for 50% of the demand for cement and this trend is

expected to continue in the near future.

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The cement industry in India is dominated by around 20 companies, which account

for almost 70% of the total cement production in India. In the present year, the Indian

cement companies have produced 11 MT cement during April-September 2011. It

took the total cement production in Financial Year 2010 to 231 MT.

FIGURES IN METRIC TONNES

Company Production Installed

Capacity

ACC 17902 18640

Gujarat Ambuja 15094 14860

Ultratech 13707 17000

Grasim 14115 14649

India Cements 8810 8434

JK Group 6174 6680

Jaypee Group 6531 6316

Century Textiles 6300 6636

Madras Cements 5470 4550

Birla Corp. 5150 5113

Lafarge 5000 4573

Following are the major players in the Indian cement industry

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Vital Statistics

The global demand for white cement is of the order of 12 mio tonnes, and is

forecasted to grow at a rate of 9–10 % per annum, significantly higher than the global

growth rate of 3 % per annum for grey cement.

ITEM India France Italy Spain

WHITE

CEMENT

CONSUMPTION

600 520 500 1,154

WHITE

CEMENT -PCC

IN KGS

0.6 8.6 8.6 28.4

WHITE CEMENT

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White Cement has registered growth in production and sale in India in the last few

years. The White Cement sector has been growing at the rate of 11% per year. This

has given the Indian cement industry a major boost.

White Cement is much like the ordinary grey cement except that it is white in color.

In order to get this color of the White Cement, its method of production is different

from that of the ordinary cement. White Cement is used in architectural projects the

use of white cement has been specified. It is used in decorative works and also

wherever vibrant colors are desired. White Cement is used to fill up the gaps between

marble and ceramic tiles for a smoother and more beautiful finish. However, this

modification in its production method makes White Cement far more expensive then

the ordinary cement

The production of White Cement requires exact standards and so it is a product which

is used for specialized purposes. White Cement is produced at temperatures that hover

around 1450-1500 degrees Celsius. This temperature is more than what is required by

the ordinary grey cement. As more energy is required during the manufacture of

White Cement, it goes to make it more expensive than the ordinary grey cement.

White Cement is used in architectural projects the use of white cement has been

specified. It is used in decorative works and also wherever vibrant colors are desired.

White Cement is used to fill up the gaps between marble and ceramic tiles for a

smoother and more beautiful finish.

White Cement is used in architectural projects the use of white cement has been

specified. It is used in decorative works and also wherever vibrant colors are desired.

White Cement is used to fill up the gaps between marble and ceramic tiles for a

smoother and more beautiful finish.

The various raw materials required for the production of White Cement are:

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Limestone

Sand

Iron Ore

Nickel

Titanium

Chromium

Vanadium

Types of Cement IS No.

ORDINARY PORTLAND CEMENT-33 GRADE 269-1989



RAPID HARDINING CEMENT 8041-1990

PORTLAND SLAG CEMENT 455-1989

PORTLAND POZZOLANA CEMENT (P-1) 1489-1991

PORTLAND POZZOLANA CEMENT (P-2) 1489-1991

MASONARY CEMENT 3466-1988

HIGH ALUMINA CEMENT 6452-1989

SUPERSULPHATED CEMENT 6909-1990

WHITE PORTLAND CEMENT 8042-1989

HYDROPHOBIC PORTLAND CEMENT 8043-1991

BIRLA and JK Cement are the major producers of white cement in the country. The

Birla White brand, has a capacity of 5.5 lakh tones, JK has a capacity of 4.0 lakh

tones. In Indian is white cement consumption capacity is good because of bigger

market and area.

TYPES OF CEMENT AND THEIR IS CODE

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S.NO

CEMENT TYPE SPECIFIC USE

(1) OPC

(a) 33 GRADE

General construction work where high

strength Concrete is not required, plastering,

finishing Works etc.

(b) 43 GRADE Used where M-15, M-20 and above grade

concrete is required used for pre cast items

and general construction work. Strength

development is faster than 33 grades.

(c) 53 GRADE High strength cement used for multistory

building, pre cast and pre stressed items,

bridges, tall structures etc. Development

very fast strength and speeds of

construction.

(2) PPC Construction of dams, dikes, sewage pipes,

plastering, masonry, finishing works and

can be used for any application of 43

Grade/53 Grade OPC.

(3) WHITE CEMENT Manufacture of tiles artistic decoration

floors decorative concrete etc generally

meant for non-structural use.

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Manufacturing

Process Of WC

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Mining (Limestone)

Crushing

Grinding

Raw Material

Blending & Storage

Clinkerization

Cement Grinding

Cement Storage

Packing

Market

Purchased Power

Purchased Power

Other Raw Materials

(Bauxite, Iron,Ore & Remud)

Fuel (Coal & Oil)

Gypsum

Fly Ash

At J.K. White Cement Works, Gotan we use technical expertise from F.L. Smidth &

Co. from Denmark and state of the art technology with continuous on-line quality

control by micro processors and X-rays to ensure that only the purest White Cement is

produced. We manufacture White Portland Cement through these 5 significant stages

- Crushing, raw meal grinding, clinkerisation, cement grinding and packing for

dispatch.

At raw mill, crushed limestone, clays and feldspar of desired chemical compositions

are fed through electronic weigh feeders.

Clinkerisation is the heart of cement manufacturing process, where the raw material is

fed to pre-heater at controlled rate through electronic weigh feeder. The feed enters

the kiln through cyclones and fuel is fired at the kiln outlet end.

Clinker and gypsum are fed to the cement mills through electronic weigh feeders at

controlled rate and ground in ball mills. The classifier (high efficiency separator)

controls the fineness of white cement. The finished product of desired chemical

composition and physical properties is transported to Cement Silos for storage.

White cement is drawn from cement silos, for packing in bags by electronic rotary

packer and in small pouches by Fill, Form and Seal machines.

Porters Five Force Model For Cement Industry

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Threat of New Entrance:

The high capital costs acts as a major entry barrier for the entry of new players. The

high freight costs make it difficult to import cement. Cement being a high volume low

value commodity results in high freight costs, which makes cement imports

economically unfeasible. Domestic Cement industry is highly insulated from global

cement markets. With Go intervention, making cement duty free, cement is being

imported from neighboring countries.

However, due to logistics issues and lack of port handling capabilities, imports of

cement will remain negligible and do not pose a threat to domestic industry.

Bargaining power of Suppliers:

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The major inputs are coal and power. The Prices of both coal and power are

determined by the government. To mitigate the high costs of power the cement

players have set up captive power plants.

Competitive rivalry between existing players:

Previously the rivalry was strong among the players, as the industry was not

consolidated. During the last few years the industry has become more consolidated

with the Top 3 players having a combined market share of 49 percent in 2005-06 as

compared to 32 percent in 1999-2000.

Bargaining power of Buyers:

Retail sales constitute about 80 percent of the total sales and the rest is institutional

sales. The retail buyers don’t have any bargaining power while the institutional buyers

get a discount of 5 to 10 percent as they buy cement in bulk.

Threat of Substitutes:

There are no good substitutes for cement. But for wall putty sunla & pop are used.

SWOT ANALYSIS FOR CEMENT INDUSTRY

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Strengths:

Double digit growth rate Cement demand has grown in tandem with strong economic

growth; derived from:

Growth in housing sector (over 30%) key demand driver.

Infrastructure projects like ports, airports, power projects, dams and irrigation

projects.

National Highway Development Program.

Bharat Nirman Yojana for rural infrastructure.

Rise in industrial projects.

Export potential also demand driver.

Utilization over 90% of capacity

Weakness: Low value commodity

Cement Industry is highly fragmented

Industry is also highly regionalized

Low – value commodity makes transportation over long distances un-economical

Opportunities: Demand–supply gap

Substantially lower per capita cement consumption as compared to developing

countries (1/3 rd of world average) Per capita cement consumption in India is 82 kgs

against a global average of 255 kgs and Asian average of 200 kgs.

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Additional capacity of 20 million tons per annum will be required to match the

demand

Limited green field capacity addition in pipeline for next two years, leading to

favorable demand – supply scenario

FOR THE YEAR 2011-12, THE DEMAND HAS RAISED UPTO 220 MT & THE SUPPLY WAS STILL SHORT TO 197 MT.

Threats: Rising input costs

Government intervention to adjust cement prices

Possibility of over bunching of capacities in the long term as some of the players has

already announced new capacities.

Transportation cost is scaling high; bottleneck due to loading restrictions

Coal prices climbing up; industry players say current shortage of coal in the country is

estimated to be over 10 million tones.

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COMPANY PROFILE

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Company Profile

ABOUT JK

J.K. Cement is an affiliate of the J.K. Organization, which was founded by Lala

Kamlapat Singhania. The J.K. Organization is an association of industrial and

commercial companies and has operations in a broad number of industries.

JK‟s cement operations commenced commercial production in May 1975 at their first

plant at Nimbahera in the state of Rajasthan. At Nimbahera, company started with a

single kiln with a production capacity of 0.3 million tons. They added a second kiln in

1979 with production capacity of 0.42 million tons, and a third kiln in 1982 with a

production capacity of 0.42 million tons. Then a precalciner with a capacity of 0.4

million tons was added in 1988, which increased company’s capacity at Nimbahera to

1.54 million tons. During the years 1998 through 2003, JK continued to implement

modifications to each of their kilns, which increased aggregate capacity at Nimbahera

to 2.8 million tons as of September 30, 2005.

JK commissioned a second grey cement plant at Mangrol plant in 2001, with a

production capacity of 0.75 million tons. As of September 30, 2005, they had an

aggregate production capacity of 3.55 million tons per annum of grey cement. White

cement plant was completed in 1984 with a capacity of 50,000 tons, and continuous

modifications to the plant have increased its production capacity to 300,000 tons as of

September 30, 2005. NOW it is 4 lakh tons.(2012-13)

The pillars for J.KWhite Cement are Dr. Gaurhari Singhania (Chairman) & Mr.

Yadupati Singhania (Managing Director).

Today, J. K. Cement Ltd. is one of the largest cement manufacturers in Northern

India. And is also the second largest white cement manufacturer in India by

production capacity. While the grey cement is primarily sold in the northern India

market, the white cement enjoys demand in the export market including countries like

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South Africa, Nigeria, Singapore, Bahrain, Bangladesh, Sri Lanka, Kenya, Tanzania,

UAE and Nepal.

Our access to high quality limestone reserves that are suitable for production of white

cement provides us with a competitive advantage. Based on geological surveys

conducted by independent agencies on our mines between 1996 and 2001, our

limestone reserves for both grey and white cement are expected to meet our existing

and planned limestone requirements of 4.0 MnTPA of grey cement and 0.4 MnTPA

of white cement, for approximately 40 years.

Backed by state-of-the-art technology and highly skilled manpower against the

backdrop of India’s infrastructural growth in an overdrive, we are upbeat about the

future. We are confident of contributing heavily in India’s journey of development.

We see a world of concrete ideas on the horizon.

In India J.K. White Cement Works is the first company to introduce white cement

manufacturing with expert & modern dry process technology in 14th August 1984

with the technical collaboration of M/s. F.L. Smith, Denmark. Our plant is first in

Asia who adopts X-Ray Analyzer Fuzzy Logic System for quality control.

J.K. White Cement Works is located at GOTAN, District- Nagpur, and Rajasthan.

Gotan is situated around 84 km east of Jodhpur & 541 km west from Delhi and

connecte4d by broad gauge railway line. Jodhpur is the nearest airport from Gotan.

J.K.White Cement Works has acquired ISO-9002 since December1993, which has

been revised to 9001:2000. Works also acquires ISO-14001 & SA-8000 RINA.

One of the Leading white cement producer in India

White cement accounted for 16.6% of our total cement revenue and 35.2% of adjusted

EBITDA from our cement operations in fiscal 2005, and 15.5% of revenues and

26.7% of our adjusted EBITDA from

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MANAGEMENT PHILOSOPHY

Customer Satisfaction

Always invest in Latest Technology

Huge Distribution Network Creation

Expansion through Balancing Equipment

Constant focus on Cost Control & Quality

Invest in Managers & Develop People Skills

Stability of Executive Management & Low Employee turnover

Social Welfare - A Priority

OUR STRENGTH

We enjoy a number of key competitive advantages, which have helped us maintain

our position as one of the leading cement manufacturers in the Northern Indian

cement market. Our principal strengths and competitive advantages are as follows:

Our cement operations in the six months ended September 31, 2005. Unlike grey

cement, the white cement industry in India is highly concentrated with the two largest

players accounting for the substantial majority of India’s production capacity.

Consequently, prices of white cement have been relatively less volatile and sales of

white cement have generated more stable cash flows for us even during industry

downturns in grey cement. We also believe our position as the second largest

producer of white cement in India, together with our nationwide delivery network,

significantly enhances the overall brand image of JK Cement.

Quality of products and strong brand name

We believe that brand name and reputation are important to retail purchasers of

cement in India. We have built a strong reputation among cement purchasers by

consistently providing high quality products. We believe that there is strong customer

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awareness of our brands, JK Cement (“Sarvashaktiman”), for grey cement in our

principal market in Northern India, and JK White (“Camel”), for white cement across

India. Further, we believe that our brand name and our reputation for consistently

supplying high quality products provide us with a competitive advantage in ensuring

that cement dealers carry our products.

Extensive marketing and distribution network

We have a wide distribution network for grey cement in Northern India. We also have

a strong all-India distribution network for white cement. Our distribution network for

grey cement products consists of 44 feeder depots serviced by seven regional sales

offices in Delhi, Haryana, Uttar Pradesh, Punjab, Rajasthan, Madhya Pradesh and

Gujarat. Our white cement network comprises 20 feeder depots serviced by 13

regional sales offices in Delhi, Chandigarh, Uttar Pradesh, West Bengal, Andhra

Pradesh, Tamil Nadu, Karnataka, Kerala, Maharashtra, Gujarat, Madhya Pradesh and

Rajasthan. In addition, we have more than 4,500 retail stores that stock our grey and

white cement products, as well as 22 sales promoters and four handling agents. We

believe that the extent of this network, and our relationships with our dealers, enables

us to market and distribute our cement widely and efficiently.

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Awards and Recognitions

'We are what we repeatedly do. Excellence, then, is not an act, but

a habit'- Aristotle

An unremitting commitment to the highest standards of quality has

earned J.K. Cement a lot of recognition through the years. The

company has been bestowed with many prestigious awards related to

productivity, environment management, and best practices in Human

Resource Development by reputed bodies.

Key recognitions among them are:

"Productivity Excellence Award, 20010-11" from the Rajasthan State

Productivity Council.







"Certificate of Excellence on the occasion of Best employer award 2007" by

Employers Association of Rajasthan, Jaipur.

"Certificate of Excellence 2003" Award in cement sector from Rajasthan State

Productivity Council, Jaipur.

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"Best Productivity Award for 2004" in cement Sector from Rajasthan State

Productivity Council, Jaipur

Award for "Best Supporting Core Plant" for the year 2003-04 from Regional

Training Centre Nimbahera - an organization for training of employees of

cement sector, which is supported by World Bank.

Our Maliakhera Mine was awarded the first prize in Mine Lighting &

Electrical Installation and Storage, Transport, Handling & Use of Explosives

(2012)

Nimbahera Mine - Awarded the first prize in Maintenance of Mine Plans,

Sections & Statutory Records and second prize in Publicity, Propaganda &

House Keeping (2012)

Tilakhera Mines - Awarded first prize in Publicity, Propaganda & House

Keeping and second prize in Maintenance of Mine Plans, Sections & Statutory

Records (2012)

"Medallion Mines Award 2001-02" and

"Medallion Mines Award 2002-03" was the prestigious moments. Our

Dhanappa Limestone Mines and Kanthariya Clay Mines are a regular recipient

of 5-7 awards every year various categories under the Mines Safety Week and

Mines Environment.

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PLANTS

We manufacture grey cement in two facilities located at Nimbahera and Mangrol in

the state of Rajasthan in Northern India. White cement is produced at our facility at

Gotan in the state of Rajasthan.

Our plants have obtained many accolades and recognition, the most noteworthy being:

ISO-9001:2000 QMS and ISO-14001:2004 EMS for the grey cement facility at

Nimbahera and ISO-9001:2000 QMS, ISO-14001:1998 EMS & OHSAS-18001:2005

Occupational Health and Safety for the white cement facility at Gotan. The

construction of our first most modern dry cement plant began in 1970 in Nimbahera in

Rajasthan.

The following table shows a breakdown of production of the Nimbahera, Mangrol and

Gotan cement facilities for the periods indicated.

Units Fiscal 2009 Fiscal 2010 Fiscal 2011 Six months ended JUNE 30, 2012

Nimbahera 2,323,283 2,272,760 2,414,196 1,256,942

Mangrol 570,464 718,572 912,419 493,211

Gotan 300,149 315,538 324,481 15,343

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PRODUCTION (IN METRIC TONS)

Nimbahera unit (Grey Cement)

Location: Chanderia Cluster, Rajasthan Commenced commercial production in

1975 with an initial capacity of 0.3 MnTPA. In the year 1979, second production line

was added to enhance the production capacity to 0.72 MnTPA. 1982 witnessed the

incorporation of another production line taking the production capacity to 1.14

MnTPA.

In 1988 a pre-calciner was installed and the production capacity touched 1.54

MnTPA. Constant modernization and up-gradation was instrumental in bringing the

plant to its present capacity of 2.8 MnTPA.

Capacity utilization of around 90% Can produce up to 3.1 MnTPA with production of

silicate cement on capacity of 2.8 MnTPA Recognition: ISO-9001:2000 QMS and

ISO-14001:2004 EMS.

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Mangrol unit (Grey Cement)

Location: Chanderia Cluster, Rajasthan

Commenced commercial production in Dec 2001 with a capacity of 0.75 MnTPA.

It’s close to Nimbahera plant (10kms away) – offers it significant synergy benefits

like assistance from technical & commercial staff of Nimbahera Complex. Additional

Grinding facility of 0.25 MnTPA

Gotan unit (White Cement)

Location: Gotan, Rajasthan

Commenced commercial production in 1984 with an initial capacity of 0.05

MnTPA .Constant up-gradation and modernization, especially in the year 2000, saw

the installed capacity rise to 0.21MnTPA. The increase in demand for this product and

focus on installed capacity backed by state-of-the-art technology, has taken its

installed capacity to 0.3 MnTPA.

Capacity utilization around 75%. Operating profit: 30% consistently. Recognition:

ISO-9001:2000 QMS

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Environmental Concern

To feed the required limestone to our cements plants, we hold four mining leases at

Ahirpura, Maliakhera, Karunda and Tilakhera where mining is carried out using deep

hole drilling and blasting. But a lot of care has been taken to negate the ill effects of

this ecology affecting activity. To begin with, we have converted the dry drilling into

wet drilling, water is sprinkled on the haul roads, dense plantation has been cultivated

around the working pit, Sequential Blasting Machine and down the hole delay are

being used to reduce noise, vibration and fly rock. Water is kept stored in the forth

bench for use during summer as it also helps recharge the ground water table.

A forestation is carried out at all the four mines as a part of the mining process. Till

date, a total of 2,85,396 plants have been planted covering a total area of over 65

hectares. Necessary arrangement for watering these plants, ensuring their survival, has

also been done in the form of construction of 6 water tanks combined with the

facilitation of direct water supply pipelines and water tankers.

We have also focused on the Waste Dump Management. The generation of waste

material along with mining of limestone at all our mines, is almost negligible.

However, some waste like Interstitial Clay, when generated, is excavated separately

and dumped at the specified places. These waste dumps are being properly leveled

which are then covered with black cotton soil scraped from other parts of the pit only.

This forms the bed for plantation or forestation. The height of the dumps is kept only

5 to 6 meters. So that there will be no chance of destabilizing of these dumps after

plantation in the long run.

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Product Profile

WHITE CEMENT

Low growth but stable business-

JKCL is the country's second-largest producer of white cement, located at Gotan in

Rajasthan. The white cement industry has grown by around 6% over the last ten years.

White cement is seen as a high-end product, primarily for aesthetic use. Further,

unlike grey cement, which has no substitute, white cement constantly faces a threat

from substitutes such as marble and the ceramic-tile industry. The white cement

production process is slightly different from that of grey cement and involves a higher

cost of production.

Mining costs are higher, as mechanized mining cannot be used: impurities

such as iron, manganese, titanium and chromium have to be physically

removed from limestone.

China clay is then mixed with limestone and ground before being fed to the

kiln.

Coal-based fuels cannot be used to heat kilns as ash residue would affect the

'whiteness' of clinker. Hence, petroleum-based fuels, which are more costly,

are used in kilns.

Cooling of clinker needs the absence of oxygen to prevent color addition to

the clinker due to oxidization.

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The white cement industry, despite having only two major players, Grasim and JKCL,

is expected to see only a moderate rise in both volumes and prices, mainly due to stiff

competition from substitutes.

JKCL plans to focus on value added products such as wall putty, which would help in

achieving higher realizations.

White cement has become the part and parcel of each house. It has become an essence

and necessity for an outstanding look. White concrete in all three aspects of

economic, social, and environmental has shown an outstanding sustainable

development resulting in greatest popularity with an increasing graph. It increases the

durability, reduces the permeability and enhances the overall durability of the

concrete. This, in turn, enhances the lifespan. White cement has its unique properties

and uses. White cement is produced from raw materials low in coloring elements such

as iron, manganese and chromium, normally utilizing high grade limestone, white

clay and pure silica as raw materials .Now in this modern world it has a wide spread

of uses. Mostly it is used in terrazzo, glass fiber reinforced concrete, as concrete

countertops roof tiles, cold weather construction, sound walls swimming pools and

spas, etc. It has created wonders in aesthetic purposes. Greater reflectivity will

increase visibility; hence it reduces the level of artificial lightning, enhancing road

safety, Increase popularity of monumental beauty, dams and bridges. Larger surface

area and fineness adds to its superiority by making its use in repair works and tile

formation and floors It reflects the heat and prevents the seepage, used to produce

Highly adhesive dry-mixes with low shrinkage and no efflorescence. Contribute to a

better environment by reducing the "Heat Island" effect economic characteristic

makes it unique by reducing long-term maintenance costs. It doesn’t easily fade,

eliminates the need for vibration for settling, reduces air pollution, used to make

prefabricated pavers and tiles, adhesive, paints and dry mixes. the unique properties

and wide variety uses has created a greater demand of it and price. Though its price is

very high but overall comparatively it is economic and sufficient in cost saving in

future.

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We manufacture white cement under the brand names J.K. White and Camel. White

cement is produced using a different quality of limestone and is distinguished from

grey cement by its white color. Each ton of white cement requires approximately 1.33

tons of limestone, 0.02 tons of gypsum and 0.2 tons of additives including white clay,

feldspar and fluorspar.

White cement is typically used in three principal areas of application, as set forth

below:

• Flooring, for the manufacturing and laying of mosaic tiles and as tile fixing grout,

wall applications, such as decorative white cement paints and plain and spray plasters;

and

• Other specialized applications including glass fiber reinforced concrete, garden

furniture, lamp posts, as pointing for brick and stone works and as pre-cast cladding

panels. We sell white cement primarily in the Indian market. We also export white

cement to a number of countries, including South Africa, Nigeria, Singapore, Bahrain,

Bangladesh, Sri Lanka, Kenya, Tanzania, United Arab Emirates and Nepal.

Corporate social responsibility- white cement unit

Concrete Road with proper drainage system at Gotan village

Sponsorship of annual Eye camps at Gotan

Street Light for Gotan village

Tree plantation along the road leading to Gotan

Organizing Social event for residents of Local area

Funding & Technical support for Infrastructure projects of Local Community

Tube Well – to provide drinking water for villagers

Temple (Renovation of two old temples)

Dharamshala (Inn) at Gotan Village

Free education to the wards of Kargil war heroes

Free bus service for students of nearby villages

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Building for girls school at Gotan village

JK WALL PUTTY

White cement based putty for luxurious and silky interior/exterior finish of your

dream home. JK Wall Putty is White Cement based putty for cement plastered walls

and ceilings. J.K. Wall Putty is used to fill the uneven surfaces of cement plastered

walls and concrete walls. Application of J.K. Wall putty provides smooth and strong

finish to the walls for further application of all kinds of paints. The smooth finish

gives better look to interiors and exteriors.

Property

Transverse Strength 2.0 N/mm2

Compressive Strength 11-12 Kg/cm2.

( 28 days)

Whiteness Index 94%.

Pot life 180 Minutes.

Water demand by volume 35 to 40 %.

Surface hardness 3.0 N.

Maximum thickness of total 2-3 mm coats (Fine Putty).

Coverage 12 Sq Feet/Kg for 2 coats*

Subject to wall condition /Roughness and usage

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Surface Preparation

The surface should be cleaned to make it free from dirt, dust, grease, oil and paint. All

foreign impurities should be removed with a wire-brush. Wall surfaces should be

cured so that the surface is saturated with water yet in „touch dry‟ condition.

Treatment of New Surface

The new surface requires only soft treatment such as removal of dust, dirt and foreign

matter. In case of cracks, voids and damages; it should be patched up prior to

application of J. K. Wall Putty with grey/white cement.

Treatment of Old Surface

All loose material and/ or organic growth must be removed with Putty blade or brush.

In case of old painted surface scrub the surface with coarse emery stone/paper.

Preparation of J.K. Wall Putty Paste

J. K. Wall Putty is a fine powder. Mix slowly J. K. Wall Putty with approx. 40%

water by volume to prepare paste of desired consistency. Mix vigorously for 5-10

minutes for making lump free, uniform and smooth putty paste. Product should be

mixed in required quantities to be used within 2-3 hrs of its preparation.

Application

First Coat Application of Putty

The paste should be applied with Putty Blade uniformly on the wall surface in

downward to upward direction to minimize losses.

After the first coating allow the surface to dry for a minimum of three hours.

When the first coat has dried, rub the surface gently with hand or soft cloth to remove

any loose particles.

Second Coat Application

Normally two coats are required to get the desired finish. Second Coat is to be applied

only after the first coat becomes dry. Try to limit the total thickness of coating to a

maximum of 1.5 mm. Wait for at least three days after drying then use fine

emery/sand paper to remove the application mark.

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PACKING

JK Wall Putty is available in 2 Versions

Fine Putty

Coarse Putty

Pickings available are 1Kg, 5 Kgs and 20 kgs and 40 Kgs Bags to facilitate

requirements. For Coarse Putty 20 Kg.

PRECAUTION

Although J.K. Wall Putty does not contain any toxic material, use rubber gloves while

mixing, as prolonged exposure with water may soften the skin resulting in fine

cuts/legions due to cement particles. Precaution should be taken to avoid dust

inhalation while handling the powder putty.

STORAGE

Store J.K. Wall Putty in a dry place and open the pack just before use. Keep out of

reach of children.

SATISFIED CLIENTS

Textile Mills

Nuclear Power Project -Kudankulam

Delhi Metro

Reliance

IIT Kanpur

PWD

JUSCO

IJM Hyderabad

Mahindra Gesco

Pharma Industry

Uttar Pradesh State Building Corporation

Unitech

Marathon

Common Wealth Games

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PROJECT TITLE

“MARKET POSITIONING OF WHITE CEMENT & WALL

PUTTY”

Project Profile- Market Research & Analysis

External Guide-

Project Head- Mr. Sandeep Sharma (Marketing head, Agra)

Project Guide- Mr. Rakesh Rajput (Sales Support associate)

1. Research Objective:

Which brands white cement and wall putty available in the given area?

Which brand does customer prefer more in white cement and wall putty?

What is the Potential of these brands in the market?

To understand the factor affecting customer expectation.

2. Research Design:

(a) Research Approach: - Descriptive Research.

(b) Sample Unit- The sample Units (respondents) in the research were selected by

simple random method and were from different White cement and Wall putty

retailers.

(c) Sample Size – 50 Retailers who sell white cement & wall putty in various regions.

(d) Research Methodology- Interview person on one to one basis using structured

questionnaire.

3. Data Collection:

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1. Primary Data.

2. Secondary Data.

Primary data- The primary data are those which are collected afresh and for the

first time .These data are obtained by a study specifically designed to fulfill the data

needs of the problems at hand such data are original in character.

Primary data is a type of data which includes the first hand information which is being

collected from the respondents through observation or direct communication with the

respondents in one form or the other.

Primary data sources-

Field observation.

Interview.

Questionnaire.

Secondary data- Secondary data means the data are already available i.e. they

refer to the data which have already been collected and analyzed by someone else.

Along with primary I have also collected some facts and my study related information

from the secondary sources.

Internet.

RESEARCH METHODOLOGY

It’s imperative that any type of organization in the present environment needs

systematic supply of information coupled with tool of analysis for making sound

decision which involves minimum risk.

A research design is purely and simply the framework or plan for a study that guides

the collection and analysis of the data.

METHODS OF DATA COLLECTION

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Through interaction with retailers.

Through questionnaires filled from the retailers.

J K Broachers and J k cement site.

SAMPLE DESIGN

Considering the constraints, it was decided to conduct the study based on sample size

of 50 respondents.

The selection was made through approach of random sampling. The basic aim of

doing the research was academic, hence most convenient way was selected.

TOOLS USED

There are several methods of collecting primary data, particularly in surveys and

descriptive research. Important are:-

Observation method.

Through questionnaires.

Interview method.

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Data Analysis &

Interpretation

DATA ANALYSIS

Name of the firm key person……………….

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Address…………. Mobile no…………………

This question gives an overview about the organization.

This also gives the clarity in data collection process. And location

Help to know key person and aware with them.

Type of firm?

Analysis:

This question let us know about the type of organizations being established.

Also density of shop in Survey area

Sr. no Options Response Percentage

1 Paint shop 25 (50%)

2 Building Material 15 (30%)

3 Hardware store 8 (16%)

4 Marble store 2 (4%)

Total 50 100%

50%

30%

16%4%

Paint ShopBuilding MaterialHardware storeMarble store

INTERPRETATION

It is clear that majority of shops are Paint shops

Second type of establishment found in majority was cement dealers .

You have white cement/white putty for sales at your shop?

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1 Yes 50 100%

2 No 0 0%

This question identifies availability of white cement & wall putty in shop.

100%

YesNo

Interpretation

In All shops white cement and wall putty was available.

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Brands that is available at your shop?

For white cement-


1 J.K. White 18 36%

2 Birla 6 12%

3 Both 26 52%

4 Other 0 0%

Total 50 100%

J.K white Birla Both Other0

5

10

15

20

25

30

18

6

26

Series1

Interpretation

In 52% shops both brands are displayed.

For wall putty:


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1 J.k wall putty 18 36%

2 Birla white

putty

15 30%

3 Wall plast

putty

8 16%

4 Other 9 18%

Total 50 100%

JK Wall putty Birla White putty

Wallplast putty

Other0%

5%

10%

15%

20%

25%

30%

35%

40% 36%

30%

16%18%

For wall putty

For wall putty

Interpretation-

Jk Wall putty covering 36% of market share and Birla white is on second position.

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Which brand do customers prefer mostly?

a) J.K. White c) Both

b) Birla Wall care d) none e) Other

This question analyses customer preference


1 J.K. White 18 36%

2 Birla Wall care 6 12%

3 Both 26 52%

Total 50 100%

J.K. White Birla Both0%

10%

20%

30%

40%

50%

60%

36%

12%

52%

Series1

Interpretation

Most of says that customer prefer both brands.

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Reason for preference

Sr.no Options Response Percentage

1 Cost 10 20%

2 Brand Name 16 32%

3 Services 6 12%

4 Profit 2 4%

5 Schemes 2 4%

6 Quality 14 28%

Total 50 100%

20%

32%

12%

4%

4%

28%

Reason For purchase by customer

CostBrand nameServicesProfitSchemesQuality

This question is designed to know the reason which influences the purchase of Wall

Putty.

Interpretation

Gives us the parameter which effects choice of sale of Wall Putty.

Most of customers prefer for its brand image.

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Please rate Birla & J.K on the following attributes using the

scale (0 is poor: 10 is best)

Characteristic

s

White Cement Wall Putty

J.K.

WC

BWC J.K. BWC

Whiteness 10 9 10 10

Price 9 8 9 9

Availability 9 8 8 7

Customer

satisfaction

9 9 8 9

Packaging 8 9 8 8

Action against

complaints

9 10 9 10

Credibility of

stockiest

9 7 9 7

Promotion 8 7 8 9

Analysis:

This was to know the various parameters on which Wall Putty and White

Cement can be rated.

The various factors which can be the differentiating factor, and can be

concentrated are easily determined.

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Interpretation:

For White Cement

White

ness

Price

Avabilit

y

Customer

satisfa

ction

Packag

ing

Actioninst

again

st co

mplaint

Credibilit

y of s

tockist

Promotion

0

2

4

6

8

10

12

109

7

98

10

7

9

JKBIRLA

For Wall Putty

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White

ness

Price

Avabilit

y

Customer

satisfa

ction

Packag

ing

Actioninst

again

st co

mplaint

Credibilit

y of s

tockist

Promotion

0

2

4

6

8

10

12

109

7

98

10

7

9

JKBIRLA

Company representative give visits?


1 Yes. 39 78%

2 No 11 22%

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78%

22%

Representative gives visit

YesNo

Interpretation

Most of retailers say yes.

Does the company representative serves purpose or adds

value?

Sr.no Options Response Percentage

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1 Yes 35 70%

2 No 15 30%

70%

30%

Representative serves purpose

YesNo

Interpretation

This specifies that Retailers having service advantage with this or not.

What you feel about future demand of White Cement based

Wall Putty?


1 Growing fast 5 10%

2 Medium 22 44%

3 Stagnant 15 30%

4 Decline 8 16%

Total 50 100%

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Analysis:

This was to know the future market potential

Also it allows forecasting the future demand for Wall Putty

10%

44%30%

16%

Growth of white cement and wall putty

Growing FastMediumStagnantDecline

Interpretation

Around 44% says there is potential in the market, and the market is slowly growing.

This slowly growing market can be converted to fast growing market by boosting the

product in the market by various marketing strategies and in can increase from 10%.

Name of the stockiest/ servicing stockiest?

Analysis

Shanty machinery store is only service provider for J k in most shops. And for Birla

Govind Hardware store.

Q) Do you have any suggestion to enhance product/ service?

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Analysis

We take retailers advises and suggestion to enhance product service, Quality

and Performance.

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Findings, Suggestions

and Conclusion

Findings at a glance

• There is too much competition between retailers for their sale.

• Improper communication between executives and dealers and other parties.

• No facility for removal of companies from the side of dealers / retailers on

time.

• There is a complaint from the side of retailers is that dealers deal customer

directly and sell cement on lower price, due to this customer does not go to

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retailers and purchase from dealers. thus the retailers are not interested to keep

stock of J.K. cement.

• Less advertisement of the product as comp aired to other company.

• Good brands image of J.K. cement in existing market.

RECOMMENDATION

JK White Cement needs to really plan heavy and systematic

investments for promotions of their products if they really want to

excel in the retail market. This is primarily recommended because

promotional support is the back bone of marketing and sales

Company should provide Incentive scheme to dealers and Retailers.

Company should establish a small office in that area so that

interaction with customers and dealers would be easy.

Distribution of schemes and gifts to dealers and retailers should be

proper and effectively.

Improve packing of white cement so that retailers can handle it for

more time.

Conclusion

Most of the retail outlets visited was multi-branded.

According to most of the retailers covered customer prefer Jk white followed

by Birla white.

According to retailers while making purchase decision the customer is the

most sensitive to the brand name, followed by quality, followed by whiteness.

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By brand name customer mean a reputed company having goodwill like JK

White and Birla White.

JK has good market share and brand name in White Cement and Wall Putty.

The company needs to promote white cement as well as wall putty more.

Most of the retailers don’t face any complaints from consumers in any brand

According to most of the retailers Jk White Cement is the hottest brand

followed by Birla White Cement. With Jk White holding more than 60% of

sale in the retail market in maximum outlets.

As far as market demand of white cement and putty Jk is ahead of Birla.

Awareness level is good for Jk. and Birla white

Jk wall putty price is less than Birla putty. So customer prefer Jk More

because gets good quality with brand in less price.

Due to too much competition Retailers are not able to take sufficient profit.

Limitations

Certain limitations were experienced at different Levels during project study:-

Findings of the study which is done at etawah may not be applicable at

other Parts . Because of customer taste preference and behavior.

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Sometime getting difficulty in getting response due to lack of time and

inherent human tendency.

The place where study is done is not so urban and people are not much

aware.

No response was serious limitation.

There was no measure to check biased information.

Paucity of time with dealer and sub dealers made them to provide Quick

information rather than precise information,.

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BIBLIOGRAPHY

1) J K White Cement hand book

2) J K brochures

3) Marketing Management-Philip Kotler

3) Marketing Research-Naresh Malhotra

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Questionnaire

Market position of White Cement & Wall Putty.

Part-1

1. Name of the Firm: …………………………….. Key

Person :…………………………………

Address: ……………………………………

Mob :

2. Type of Firm ________________

3. Do you have white cement/ wall putty for sales at your shop?

Yes No

a) White Cement ( ) ( )

b) Wall Putty ( ) ( )

4. If yes then which brands are displayed at your shop?

a) J.K. c) Both

b)Birla d) Any other (please specify)………………………

Part-2

5. Which brand do customers prefer mostly?

a) J.K. ( Putty) c) Both

b) Birla (Putty) d) None

e) Any other (please specify)………………………………….

6. What is the average monthly sale of JK and BIRLA from your shop?

Particulars White cement Wall putty

JK BIRLA JK BIRLA

0.5 MT-1 MT

1 MT -1.5 MT

1.5 MT – 2 MT

More than 2 MT ( please specify

the quantity)

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7. ABC pricing for white cement.

8. ABC pricing for wall putty.

Part-3

9. Please rate J.K. Cement & Birla Wall Care on the following attributes using the

scale 0 to5 .(1:very poor,2:Poor 3:Average, 4:Good, 5:Very Good).

10. Do you get

any offer/

scheme from

the company?

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J.K BIRLA

25kg 50kg 25kg 50kg

A

B

C

J.K BIRLA

20kg 40kg 20kg 40kg

A

B

C

Characteristics White Cement Wall Putty

J.K. WC BWC J.K. BWC

Whiteness

Price

Availability

Customer

satisfaction

Packaging

Action against

complaints

Credibility of

stockiest

Promotion

Yes No

J.K

BIRLA

11. If yes, then which types of schemes are offered?

a) Gift scheme. c) Target based tours

b) Cash discount. d) Any other (please specify)

………………………………………..

12. Which schemes do you prefer?

a) Gift scheme. . c) Target based tours.

b) Cash discount d) Any other (please specify)

……………………………

13. According to you which company gives you better schemes?

a) J.K. ( )

b) BIRLA. ( )

c) Any other …………………………………………………………………….

14. Does the company representative give visits?

a) Yes. ( )

b) No. ( )

15. If yes, does the company representative serves purpose or adds value?

a) Yes (please specify how?) ( )

………………………………………………

b) No. ( )

Part-4

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16. How do you see the future growth of White cement/ Wall putty? (Please tick your

option)

White cement Wall putty

Very fast

Fast

Slow

Very slow

Stagnant

Declining

17. Name the stockiest/ servicing stockiest.

……………………………………………………ADD:

…………………………………………………..

18. Do you have any suggestion to enhance product/ service?

…………………………………………………………………………………………………

………………………………………………………………

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MARKET POSITIONING OF WHITE CEMENT AND WALL PUTTY

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