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INTERNSHIP REPORT ON ORGANISATIONAL STRUCTURE OF ULTRA TECH CEMENT SUBMITTED BY: MOHIT SARAWAGI CHRIST UNIVERSITY BANGALORE 1
Transcript
Page 1: Ultra Tech Final12

INTERNSHIP REPORTON

ORGANISATIONAL STRUCTURE OF ULTRA TECH CEMENT

SUBMITTED BY:

MOHIT SARAWAGI

CHRIST UNIVERSITY

BANGALORE

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INTRODUCTION

ULTRA TECH CEMENTUltraTech is the second largest cement manufacturer in India. It is the part of

Aditya Birla group and is subsidiary of Grasim. It has a capacity of 18.2

million tonnes. The company is the largest exporter of cement and clinker

from India. UltraTech has a presence in the west, south, north and east. The

western and southern regions are its major markets. The company exports

both clinker and cement. The company exports are moving towards cement

from clinker owing to the higher realization in the cement. In 2005-06 the

company exported 1.52 million tonnes of cement. With UltraTech Cement,

the Aditya Birla Group has established itself as not only the most respected

domestic player but also among the global leaders in cement. Now a look at

Aditya Birla group’s cement capacity:

Currently, the Aditya Birla Group is the 11th largest cement producer in the

world and the seventh largest in Asia and Ultra Tech and Grasim together,

make it the largest cement producer in India.

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 The group mainly has two cement units – Grasim and Ultra tech.

 UltraTech Cement Limited, a Grasim subsidiary has an annual capacity of

18.2 million tonnes. It manufactures and markets Ordinary Portland

Cement, Portland Blast Furnace Slag Cement and Portland Pozzolana

Cement. It has five integrated plants. This also includes the integrated plant

and two grinding units of the erstwhile Narmada Cement Company Limited,

a subsidiary, which has been amalgamated with the company in May 2006.

Grasim, on the other hand, manufactures grey and white cement. In grey

cement, the company has the capacity to manufacture 14.20 mtpa. This

includes Grasim’s capacity of 2.06 mtpa, Vikram Cement 4.2 mtpa, Aditya

Cement 1.5 mtpa, Rajashree Cement 4.2 mtpa, the acquired and merged

Dharni Cement 1.16 mtpa and the acquired Digvijay Cement 1.08 mtpa.

 Grasim and Ultra Tech together have a cement capacity of 31.20 mtpa. And

when the B K Birla cement companies also come into the fold, the Aditya

Birla group would have a cement capacity of 37.86 mtpa, making it clearly

the largest cement maker of India.

The Aditya Birla Group bought over the cement business of L&T for

around Rs. 2,200 crore. L&T allowed its name to be used for about a year.

Then from 19th November 2003,the name was changed to ultra tech

cemco.This name also didn’t last for long and finally the ultra tech cemco

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was changed to Ultra Tech cement. These stages of evolution of ultra tech

cement are listed below:

2001

:: Grasim acquires 10 per cent stake in L&T. Subsequently increases stake

to 15.3 per cent by October 2002

:: Durgapur grinding unit

2002

::

The Grasim Board approves an open offer for purchase of up to 20 per

cent of the equity shares of Larsen & Toubro Ltd (L&T), in accordance

with the provisions and guidelines issued by the Securities & Exchange

Board of India (SEBI) Regulations, 1997.

:: Grasim increases its stake in L&T to 14.15 per cent

:: Arakkonam grinding unit

2003

:: The board of Larsen & Toubro Ltd (L&T) decides to demerge its cement

business into a separate cement company (CemCo). Grasim decides to

acquire an 8.5 per cent equity stake from L&T and then make an open

offer for 30 per cent of the equity of CemCo, to acquire management

control of the company.

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2004

:: Completion of the implementation process to demerge the cement

business of L&T and completion of open offer by Grasim, with the latter

acquiring controlling stake in the newly formed company UltraTech

2006

Narmada Cement Company Limited amalgamated with UltraTech

pursuant to a Scheme of Amalgamation being approved by the Board for

Industrial & Financial Reconstruction (BIFR) in terms of the provision

of Sick Industrial Companies Act (Special Provisions)

TEAM

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Board of Directors :: Mr. Kumar Mangalam Birla, Chairman

:: Mrs. Rajashree Birla

:: Mr. R. C. Bhargava

:: Mr. G. M. Dave

:: Mr. N. J. Jhaver

:: Mr. S. B. Mathur

:: Mr. V. T. Moorthy

:: Mr. S. Rajgopal

:: Mr. D. D. Rathi

Mr. O. P. Puranmalka, Wholetime Director

Executive President & Chief Financial Officer

:: Mr. K. C. Birla

Chief Manufacturing Officer

:: Mr. R.K. Shah

Chief Marketing Officer

:: Mr. S.N.Jajoo

Chief People Officer

:: Mr. C. B. Tiwari

Company Secretary

:: Mr. S. K. Chatterjee

ULTRA TECH PRODUCTION UNITS:

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Ultra Tech’s subsidiaries are Dakshin Cement Limited and UltraTech

Ceylinco (P) Ltd.UltraTech has five integrated plants, six grinding units and

three terminals — two in India and one in Sri Lanka. These include an

integrated plant and two grinding units of the erstwhile Narmada Cement

Company Limited, a subsidiary, which has been amalgamated with the

company in May 2006.The details of its different production units is shown

on the next page.

Vision

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To be a premium global conglomerate

with a clear focus on each business.

Mission

To deliver superior value to our customers,

shareholders, employees and

society at large.

Values

Integrity

Commitment

Passion

Seamlessness

Speed

PROFILE OF THE PRODUCTS

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UltraTech is India's largest exporter of cement clinker. The company's

production facilities are spread across five integrated plants, five grinding

units, and three terminals — two in India and one in Sri Lanka. All the

plants have ISO 9001 certification, and all but one have ISO 14001

certification. While two of the plants have already received OHSAS 18001

certification, the process is underway for the remaining three. The company

exports over 2.5 million tonnes per annum, which is about 30 per cent of the

country's total exports. The export market comprises of countries around the

Indian Ocean, Africa, Europe and the Middle East. Export is a thrust area in

the company's strategy for growth.

UltraTech's products include

Ordinary Portland cement

Portland blast furnace slag cement

Portland Pozzolana cement

Cement to European and Sri Lankan norms

Ordinary Portland cement

Ordinary portland cement is the most commonly used cement for a wide

range of applications. These applications cover dry-lean mixes, general-

purpose ready-mixes, and even high strength pre-cast and pre-stressed

concrete.

Portland blast furnace slag cement

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Portland blast-furnace slag cement contains up to 70 per cent of finely

ground, granulated blast-furnace slag, a nonmetallic product consisting

essentially of silicates and alumino-silicates of calcium. Slag brings with it

the advantage of the energy invested in the slag making. Grinding slag for

cement replacement takes only 25 per cent of the energy needed to

manufacture portland cement. Using slag cement to replace a portion of

portland cement in a concrete mixture is a useful method to make concrete

better and more consistent. Portland blast-furnace slag cement has a lighter

colour, better concrete workability, easier finishability, higher compressive

and flexural strength, lower permeability, improved resistance to aggressive

chemicals and more consistent plastic and hardened consistency.

Portland Pozzolana cement

Portland pozzolana cement is ordinary portland cement blended with

pozzolanic materials (power-station fly ash, burnt clays, ash from burnt plant

material or silicious earths), either together or separately. Portland clinker is

ground with gypsum and pozzolanic materials which, though they do not

have cementing properties in themselves, combine chemically with portland

cement in the presence of water to form extra strong cementing material

which resists wet cracking, thermal cracking and has a high degree of

cohesion and workability in concrete and mortar.

GOVERNMENT POLICIES

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Government policies have affected the growth of cement plants in India in

various stages. The control on cement for a long time and then partial

decontrol and then total decontrol has contributed to the gradual opening up

of the market for cement producers. The stages of growth of the cement

industry can be best described in the following stages:

Price and Distribution Controls (1940-1981):

During the Second World War, cement was declared as an essential

commodity under the Defense of India Rules and was brought under price

and distribution controls which resulted in sluggish growth. The installed

capacity reached only 27.9 MT by the year 1980-81.

Partial Decontrol (1982-1988):

In February 1982, partial decontrol was announced. Under this scheme, levy

cement quota was fixed for the units and the balance could be sold in the

open market. This resulted in extensive modernization and expansion drive,

which can be seen from the increase in the installed capacity to 59MT in

1988-89 in comparison with the figure of a mere 27.9MT in 1980-81, an

increase of almost 111%.

Total Decontrol (1989):

In the year 1989, total decontrol of the cement industry was announced. By

decontrolling the cement industry, the government relaxed the forces of

demand and supply. In the next two years, the industry enjoyed a boom in

sales and profits. By 1992, the pace of overall economic liberalization had

peaked; ironically, however, the economy slipped into recession taking the

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cement industry down with it. For 1992-93, the industry remained stagnant

with no addition to existing capacity

The things that primarily control the price of cement are coal, power tariffs,

railway, freight, royalty and cess on limestone. Interestingly, all of these

prices are controlled by government.

Purchase of materials:

A system is followed in order to purchase the materials. First the

requirements are taken from the respective customers or proper valuation is

done of the project. Then the various dealers are invited to submit the

quotations and finally the one with the lowest quotation and delivering the

best quality in the stipulated time.

DEPARTMENTS AND FUNCTIONS:

The various departments at ultratech Kolkata are

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Accounts

Marketing

Logistics

Technical

Accounts

Secretary Head Regional head SH-MIS

Accountant Accountant

Accountant depot accountant accountant mis

LACF

MARKETING

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Zonal head

Regional head

Territory sales manager

Territory sales executive

Long arm sales force

LOGISTICS

Zonal head

Regional head logistics

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TECHNICAL (TASC)

Zonal Technical Head

Regional Technical Head

Territory Technical Sales Manager

Long Arm Technical Force

SWOT ANALYSIS

Strengths: Double digit growth rate  

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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, dam & irrigation

projects

-National Highway Development Programme

-Bharat Nirman Yojana for rural infrastructure

-Rise in industrial projects

-Export potential also demand driver

Capacity utilization over 90%

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

 

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 have already announced new capacities

Transportation cost is scaling high; bottleneck due to loading

restrictions

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Coal prices climbing up; industry players say current shortage of coal

in the country is estimated to be over 10 million tonnes 

PRICES

The regional variation in the Indian market has resulted in the cement prices

across regions witnessing movement within a band, with no appreciable

increase in any region. Differences in regional demand supply situation have

translated into price differences across regions. Prices are lower in Southern

regions where there is normally a supply surplus. However, prices are higher

in Eastern and Western regions where shortages exist. The surplus position

had resulted in significant pressure on price realizations in recent years.

.The cyclical trough in the late-1990s had a severe impact on the industry

financials. However, cement prices have firmed up during the last few years

due to improvement in demand-supply position and increasing consolidation

in the industry. The Wholesale Price Index (WPI) for cement increased 3.9%

during FY2005, as compared with a growth of 1.2% during FY2004. The

WPI for March 2006 was 11% higher than the WPI for March 2005.

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Margins

Cement prices have firmed up during the last few years due to improvement

in demand-supply position and increasing consolidation in the industry. The

trend in gross sales realization is similar for the cement companies in our

sample (comprising pure cement companies accounting for around two-

thirds of industry production and sales).

The operating profits and margins for cement companies are most sensitive

to cement sales realizations. During FY2004-05, riding on high average

sales realizations, the cement companies posted increased operating profits

and margins. This reversed the decline in operating profits and margins

during FY2002-03. This was mainly because of excess capacity and the

consequent low price realizations. While sales volume of the sample

companies improved 7%, operating income (OI) increased 24.2% to Rs.

183.45 billion

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RETURNS:

The key driver of profitability is cement prices, which fluctuate depending

on outlook on demand-supply gaps. The fluctuating fortunes of the Indian

cement industry are very typical of a commodity industry. The companies

make bumper returns during the boom years (FY1994-96, and FY2003-06)

while the performance goes down drastically during the lean years (FY1997-

2001). The returns have improved significantly since FY2003 because of

higher capacity utilizations, operational efficiency and cost control measures

supplemented with higher sales realizations.

the Indian cement industry has undergone vital changes through

technological changes in the pursuit of cost efficiency and drive for

consolidations. Most of the companies are making profits.

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Key Result Areas:

Sales and Marketing are the chief activities at Ultratech cement Kolkata

division. Here the proper distribution of the products is being done and a

proper channel/system of accounting is followed

THE ULTRA TECH ADVANTAGE AND FACTORS FOR

SUCCESS

UltraTech Cement Ltd is one of the largest premium quality cement

producer in India. Advanced instrumentation systems, computerized process

control and online quality control through X-ray ensure consistently high

quality product at UltraTech Cement plant. The quality of UltraTech Cement

has been globally accepted and is India's largest exporter of clinker and

cement.

UltraTech Cement due to its consistently superior quality has become the

first choice amongst discerning users and construction professionals.

Raw Material :

Careful selection and scientific proportioning of raw material with the use of

latest technology enables manufacturing of high quality cement. Rigorous

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hourly tests are conducted on raw material. Laboratories at all plants are

equipped with sophisticated facilities.

World Class process Technology ensures Quality and Consistency :

Quality Assurance is an integral part of Ultra Tech’s manufacturing

philosophy. The quality attributes are consistently ensured through rigorous

application of advanced technology. Key features include:

Use of good quality limestone and careful selection of other raw

material

Computerized mining operation and homogenization of crushed

limestone

Perfect proportioning of raw materials by QCX ( Quality Control

through X-ray )

Online process control through CCR ( Computerized Control Room )

High-quality clinkerisation and close-circuit grinding for optimum

particle size distribution

UltraTech Cement plants have been accredited with ISO 9001, 14001,

18001 Certifications by DNV of Netherlands

Distinct Features:

Higher Compressive strength

Optimal fineness

Balanced physical and chemical properties

Optimal setting time

Consistency in quality

Low-level of Chloride

High-soundness

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Advantages:

Higher workability

Lower consumption

Enhanced durability

Quicker construction

Overall economy

Customer Care and Guidance:

UltraTech Cement offers customers a range of "product plus" services. A

full- fledged Technical Services Network has been set up exclusively for

technical advice and guidance in usage of cement

UltraTech Cement is marketed nationwide through large network of

stockist's, sales officers and representatives. Cement dumps have also been

established at strategic locations to facilitate faster delivery of cement.

Value Added Services :

Mobile concrete lab services ( Concrete cube testing facilities )

Training Programmes for masons, site supervisors on good

construction practices

Field visits by qualified civil engineers

Educating individual house builders on various aspects of building

material and construction

Non-destructive testing of concrete

Any other customer specific services

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Applications :

1. All Kinds of constructions including precast and prestressed concrete,

masonry works

2. Slip form constructions

3. Rehabilitation and retrofitting works

4. Cement based products such as pipes, tiles, blocks, poles ,etc.

5. Roads, runways, bridges and flyovers

6. Water retaining structures

Product promotional measures:

Various product promotion techniques are applied at Ultratech for better

customer service and to maintain the proper quality..At regular intervals

Mason meets and Engineer meets are organized so that they can be trained

according to the requirement of the companies. Even the Technical team at

Ultratech visits the site on request over phone. Proper care is taken to

maintain the quality of the product and various technical methods are

applied in the lab to judge the quality of the products. Even advertisements

are used as a medium to promote any new product.

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Career Planning and Promotional policy:

Proper career planning is done for each and every level of employees within

a certain time period depending on the performance. Generally a person

starts at the junior level and moves next to the mid level , than senior level

and finally to executive level. Certain experienced candidates are directly

appointed to a senior level depending on the kind of experience they are

having in a particular area.

Performance appraisal system:

Proper care is taken for the benefit o each and every employee and to

maintain the interest of the employees in their respective work.In order to

motivate them certain performance appraisal policy is maintained at

Ultratech. There are two types of appraisal given in a financial year .

Mid- term, appraisal and Full year appraisal. These are generally given in

the months of October and April.

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Training Measures:

At Ultratech, Employee training is given regularly both to the existing

employees and new interns. A very professional environment is maintained

keeping in mind all the work ethics and services to be given to the customers

of the company. Before joining the company, every employee has to

undergo specific amount of training to get accustomed with the work culture

of the company. Every year certain number of interns join the company and

get themselves acquainted with the corporate world.

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AWARDS AND CERTIFICATIONS FOR ULTRA TECH

All the plants of UltraTech are ISO 14001 Environment Management

Systems certified and adhere to OHSAS 18001 standards. Clean

technologies and processes that combine economic progress and sustainable

environment have been adopted at UltraTech's plants at Awarpur and

Ratnagiri in Maharashtra; Kovaya, Jafrabad and Magdalla in Gujarat; Hirmi

in Chhattisgarh; Arakkonam in Tamil Nadu; Tadipatri in Andhra Pradesh;

Jharsuguda in Orissa and Durgapur in West Bengal.

Export awards

Worldwide, clients have consistently endorsed Ultra Tech’s highest quality

standards. The list of export awards it has won is testimony to Ultra Tech’s

uncompromising standards on product quality. Ultra Tech has been on the

roll call of top exporters of the Chemicals & Allied Products Export

Promotion Council (Capexil), year after year.

Ultratech won the Capexil Certificate of Export Recognition - Top Exporter - Cement,

Clinker, Asbestos and Cement Products for the years 2000, 2002 and 2003.

Other awards that have come its way have included:

Year Award

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2001 and 1999Capexil Certificate of Export Recognition - Highest Export in Non-mineral Sector

1999Capexil Certificate of Outstanding Export Performance - Chemicals & Allied Products (for Portland cement)

1998Capexil Certificate of Export Recognition - Top Exporter- Cement, Asbestos, Cement Products

1998 Certificate of Outstanding Export Performance, Gujarat state

1997Capexil Certificate of Export Recognition - Certificate of Merit for Export Achievement in Cement and Clinker

SOCIAL PROJECTS

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"To actively contribute to the social and economic development of the

communities in which we operate. In so doing, build a better, sustainable

way of life for the weaker sections of society and raise the country's human

development index."

— Mrs. Rajashree Birla, Chairperson,

The Aditya Birla Centre for Community Initiatives and Rural Development

Our focus areas

Our rural development activities span five key areas and our single-minded

goal here is to help build model villages that can stand on their own feet.

Our focus areas are healthcare, education, sustainable livelihood,

infrastructure and espousing social causes.Education

Balwadis (pre-school)

Adult education

Non-formal education

Continuing education

Scholarships for girls, merit and technical education

Health and family welfare

Mobile clinics - doctors visit once a week

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Medical camps - general and issue-based

Health training and awareness

Sanitation - toilets, training, smokeless chullahs, biogas

Safe drinking water

Mother and child health

Reproductive health

Awareness building

Sustainable development and livelihood and agriculture and watershed

development

Self-help groups

SGSY - dairy, readymade garments, jute project, basket making,

aggarbati making, bee keeping, durrie making.

Check dam

Irrigation

Land development

Soil and water conservation

Pasture development

Social forestry/ plantation activities/ nursery

Horticulture

Farmer training

Infrastructure development

Roads

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Dams

Community centres

Houses

Culverts

Electricity

Health centres

Water channels

Schools

Social causes

Widow / dowry-less mass marriages

Women empowerment

Awareness drives on knowledge, attitude and practices

FINANCIAL HIGHLIGHT:

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Balance sheet as on 31 March 2009

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LIMITATIONS OF THE STUDY

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1. The major problem of the survey was that most of the respondents

being very loyal to their brands didn’t give exact answers .like they

didn’t talk much about what problems they are facing, what are the

different marketing schemes of the brand in which they deal etc.

2. Once we got the questionnaire filled, we need to restart the

conversation in a very generalized way and talk about the local market

conditions. Like who is the main dealer, which cement is mostly sold

in that area etc.so this survey demands a good piece of time while

talking to the respondent. Also Sonepat & Kurukshetra are both big

Distts. With a number of small towns and villages. So to complete the

survey within 2 months time seems to be a bit difficult.

3. Some of the respondents may have told their average monthly sale

more than the actual. Because all of them think that the monthly sale

attached with the market image of their shop.

4. Many of the dealers/retailers refused to answer any question atall.So

the actual figures can be somewhat different from the one that we

have found out

.

5. Being new to the Distts of Sonepat & Kurukshetra, it is quite possible

that I was unable to explore some of the dealers/retailers.

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RECOMMENDATIONS

Based upon the time spent by me in the market, usefull suggestions of the

dealers & retailers and the findings from the survey, following

recommendations can be suggested for increasing sales and effectiveness of

Ultra Tech Cement:

What matters for most of the cement buyers is the price of the cement

and then the quality. While visiting market for cement purchase, they

don’t care about which brand they are going to buy. They simply

know that X is ongoing price of the cement, if any brand costs higher

than X, they will not buy that brand. Ultra Tech Cement usually costs

4-5 Rs. Higher than the other counterparts. So the buyers, to much

extant not interested in buying Ultra Tech cement. This extra price is

the main reason behind lower sales.therefore, Ultra Tech need to take

some serious steps to reduce the selling price somehow.

The second thing is that a good percentage of buyers is still unaware

of the fact that Ultra Tech cement is the changed name of Birla

cement.Birla cement had a very good image and it is still very popular

among the customers. But people are not so much sure about Ultra

Tech cement. so Ultra Tech need to take some steps to make people

familiar with the’ Birla cement and Ultra Tech’ relation. Because this

will bring the old Birla loyal customers to Ultra Tech cement.

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The number of retailers and sub dealers for Ultra Tech cement is very

less as compared to the main competitors ACC, J.K. etc.So Ultra Tech

need to be oriented in this direction. They need to increase the no. of

retailers as much as possible. Although Ultra Tech has taken a right

step with the ‘retailer registration scheme’ to increase the no. of

retailers. but this scheme needs some improvements. For ex-margin

for the retailers can be increased, we can assure them some gifts also.

While working, I saw that the main condition for this new scheme was

that the retailer will not sell any other brand of cement. Most of the

retailers refused the scheme due to this particular reason. So Ultra

Tech needs to give them some relaxation in this case.

Many of the Ultra Tech dealers used to shop other type of building

materials along with cement, in the same shop. This should not be

permitted by Ultra Tech.Because selling of these building materials is

more profitable than cement, so the cement selling becomes less

important for these dealers. They don’t give proper attention to the

company officials and also to the various schemes of increasing sales.

This in turn brings reduced sales to the company

Ultra Tech Cement has market image of a modern cement with very

good quality. It should try to encash this image. Its mainly the

younger section of people who care about quality first and then the

price. So Ultra Tech needs to give proper attention to the youngsters.

May be, they are not the cement buyers at present but future

possibility lies with them.

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Ultra Tech also should have a check on the upcoming threat of

imported cement from Pakistan. The import of cement from Pakistan

has just started and very quickly it has become successful in the

southern markets. The main reason behind this success is the lower

price. The Pak cement brands like Lucky, Mapple Leaf and Elephant

costs 10-15 Rs. Lesser than the local Indian brands. Ultra Tech which

is already facing charges of higher price needs to be prepared for this.

Some of the Ultra Tech dealers complained that they are losing the

customers loyal to their shops, due to the high price of the cement

provided by them. So at some point, the dealers are not satisfied with

the company. This need to be taken seriously by Ultra Tech.Some

more incentive schemes should be introduced for the dealers and also

the frequency of visits from company officials need to be increased.

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POSSIBLE ADVERTISEMENT METHODS

All of the cement brands use the similar methods of advertising like-

painting walls, use banners, giving free gifts to the dealers and masons

etc.There are still many possible methods of advertisement and creating

brand awareness, which are untouched. Some of these methods are as below:

Local cable T.V. can be used for advertising as well as to give details

about the major dealer/dealers in the city. Details like address, contact

no. of the dealer, different schemes, current market price etc can be

shown.

Local F.M. stations of sonepat and Karnal are also reaching a good

part of listeners. So these can also be used for the same purpose.

Banners, paintings are used mainly on the tractor trolleys, dealer’s

shop and on walls only. We can think about using banners on

rickshaws and autos also.

Different type of incentive schemes, free gifts are mainly for dealers

and sometimes for the masons. As a change, we can also try to attract

the customers directly. For ex-discount coupons, small free gifts,

scratch cards etc can be made available for the customers.

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A number of meetings are organized by all the cement companies

with the local masons. Most of the masons are very less educated.

They attend many meetings. So it may become difficult for them to

recognize a particular cement brand. What we can do in this case is to

take help of Handvertising i.e. we need to put the Ultra Tech logo on

the hands of these masons. So that next time they saw this logo, they

found themselves a bit familiar with the company.

The ‘masons meet’ are organized by the company regularly. This

needs some improvements. We need to decrease the frequency of

these meets. What we can do is that organize a big meet with a no. of

people, higher company officials, entertainment, and snacks for all.

The presence of company officials in the meeting is not alone

sufficient. We need to call some big personalities from that city only.

The people like these masons are more impressed by the presence of

Govt.officials.

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Ultra Tech has two major competitors- J.K. CEMENT and ACC

CEMENT.

Ultra Tech is well established in the markets as far as quality is

concerned.

Introduction of new attractive incentive schemes can bring new

dealers & retailers for Ultra Tech cement.

Price is the major factor that matters for a customer while purchasing

cement

Market share increases with the increase in no. of dealers.

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