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) Date-

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Vikash Dubey (M.B.A 3rd SEM) Roll No-

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.

Heading

Page no

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

3)

Product Profile

a)

J.K White Cement

31

b)

J.K Wall Putty

34

4)

Project Detail

37

a)

Project Title

37

b)

Objectives

37

c)

Research methodology

38

5)

Data Analysis & Interpretation

42

6)

Questionnaire Analysis

42

7)

Findings and suggestion

55

8)

Conclusion

56

9)

Limitations

57

10) Bibliography

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21

58

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 WHITE

India

France

Italy

Spain

600

520

500

1,154

0.6

8.6

8.6

28.4

CEMENT CONSUMPTION WHITE CEMENT -PCC IN KGS

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WHITE CEMENT 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.

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

Limestone



Sand



Iron Ore



Nickel



Titanium



Chromium



Vanadium

Types of Cement

IS No.

ORDINARY PORTLAND CEMENT-33 GRADE

269-1989

ORDINARY PORTLAND CEMENT-43 GRADE

8112-1989

ORDINARY PORTLAND CEMENT-53 GRADE

12269-1987

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.

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TYPES OF CEMENT AND THEIR IS CODE CEMENT TYPE

SPECIFIC USE

OPC

General construction work where high

(a) 33 GRADE

strength Concrete is not required, plastering,

S.NO (1)

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

Mining (Limestone)

Purchased Power

Grinding Other Raw Materials (Bauxite, Iron,Ore & Remud)

Crushing

Raw Material

Blending & Storage Fuel (Coal & Oil) Clinkerization

Gypsum Cement Grinding Fly Ash Cement Storage

Packing

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Purchased Power

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.

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Porters Five Force Model For Cement Industry

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.

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Bargaining power of Suppliers:

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.

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SWOT ANALYSIS FOR CEMENT INDUSTRY

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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ditional 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 22 | P a g e

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 24 | P a g e

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



"Productivity Excellence Award, 2009-10" from the Rajasthan State Productivity Council.



"Productivity Excellence Award, 2008-09" from the Rajasthan State Productivity Council.



"Productivity Excellence Award, 2007-08" 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.



"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.

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

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

PRODUCTION (IN METRIC TONS)

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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. 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 33 | P a g e

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



Building for girls school at Gotan village

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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. 36 | P a g e

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 37 | P a g e

PROJECT TITLE “MARKET POSITIONING OF WHITE CEMENT & WALL PUTTY”

Project Profile- Market Research & Analysis

External GuideProject 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.

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3. Data Collection: 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.

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METHODS OF DATA COLLECTION 

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

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DATA ANALYSIS Name of the firm

key person……………….

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%)

50

100%

Total

4% 16% 50%

Paint Shop Building Material

30%

Hardware store Marble store

INTERPRETATION



It is clear that majority of shops are Paint shops



Second type of establishment found in majority was cement dealers .

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

Sr. no

Options

Response

Percentage

1

Yes

50

100%

2

No

0

0%

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

0%

Yes No

100%

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-

Sr. no

Options

Response

Percentage

1

J.K. White

18

36%

2

Birla

6

12%

3

Both

26

52%

4

Other

0

0%

50

100%

Total

30 26 25 20

18

15

Series1

10 6 5 0 J.K white

Birla

Interpretation In 52% shops both brands are displayed.

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Both

Other

For wall putty: Sr. no

Options

Response

Percentage

1

J.k wall putty

18

36%

2

Birla white

15

30%

8

16%

9

18%

50

100%

putty 3

Wall plast putty

4

Other

Total

For wall putty 36%

40% 35% 30% 25% 20% 15% 10% 5% 0%

30%

16%

JK Wall putty

Birla White putty

Wallplast putty

18% For wall putty

Other

InterpretationJk 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

Sr. no

Options

Response

Percentage

1

J.K. White

18

36%

2

Birla Wall care

6

12%

3

Both

26

52%

50

100%

Total

60% 52% 50% 40%

36%

30%

Series1

20% 12% 10% 0% J.K. White

Birla

Interpretation Most of says that customer prefer both brands.

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Both

 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%

50

100%

Total

Reason For purchase by customer

20% Cost

28%

Brand name Services Profit Schemes

4%

Quality

4%

32% 12%

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) Characteristics White Cement Wall Putty J.K.

BWC J.K.

BWC

WC Whiteness

10

9

10

10

Price

9

8

9

9

Availability

9

8

8

7

Customer

9

9

8

9

8

9

8

8

10

9

10

9

7

9

7

8

7

8

9

satisfaction Packaging

Action against 9 complaints Credibility of stockiest Promotion

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 12 10 10

10 9

9

9 8

8

7

7

6 4 JK 2

BIRLA

0

For Wall Putty 12 10 10

10 9

9

9 8

8

7

7

6 4 JK 2 0

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BIRLA

 Company representative give visits? Sr. no

Options

Response

Percentage

1

Yes.

39

78%

2

No

11

22%

Representative gives visit

22%

Yes No

78%

Interpretation Most of retailers say yes.

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 Does the company representative serves purpose or adds value? Sr.no

Options

Response

Percentage

1

Yes

35

70%

2

No

15

30%

Representative serves purpose

30% Yes No 70%

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

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 What you feel about future demand of White Cement based Wall Putty? Sr. no

Options

Response

Percentage

1

Growing fast

5

10%

2

Medium

22

44%

3

Stagnant

15

30%

4

Decline

8

16%

50

100%

Total

Analysis: This was to know the future market potential Also it allows forecasting the future demand for Wall Putty

Growth of white cement and wall putty 16%

10% Growing Fast Medium Stagnant

30%

44%

Decline

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%.

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 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?

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

Performance.

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Findings, Suggestions and Conclusion

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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 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.

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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. 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.

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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.  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 JK

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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BIRLA

Wall putty JK

BIRLA

7. ABC pricing for white cement. J.K 25kg

BIRLA

50kg

25kg

50kg

A B C

8. ABC pricing for wall putty. J.K 20kg

BIRLA 40kg

20kg

40kg

A B C

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).

Characteristics

Whiteness Price Availability Customer satisfaction Packaging Action

against

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of

White Cement

Wall Putty

J.K. WC

J.K.

BWC

BWC

10. Do you get any offer/ scheme from the company? 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.

.

b) Cash discount

c) Target based tours. 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.

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(

)

Part-4 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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