Embed Size (px)
Citation preview
FOUNDER Lt. LALA KAMLAPAT SINGHANIA
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.
Our cement operations commenced commercial production in May 1975 at our first plant at Nimbahera in the state of Rajasthan. At Nimbahera, we started with a single kiln with a production capacity of 0.3 million tons. We 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. We added a precalciner with a capacity of 0.4 million tons in 1988, which increased our capacity at Nimbahera to 1.54 million tons. During the years 1998 through 2003, we continued to implement modifications to each of our kilns, which increased our aggregate capacity at Nimbahera to 2.8 million tons as of September 30, 2005.
We commissioned a second grey cement plant at our Mangrol plant in 2001, with a production capacity of 0.75 million tons. As of September 30, 2005, we had an aggregate production capacity of 3.55 million tons per annum of grey cement. Our white cement plant was completed in 1984 with a capacity of 50,000 tons. Our continuing modifications to the plant have increased its production capacity to 300,000 tons as of September 30, 2005.
Today, J. K. Cement Ltd. is one of the largest cement manufacturers in Northern India. We are 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 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.
Board of DirectorsKey Management Personnel
Dr. Gaur Hari Singhania
Chairman
Mr. Yadupati Singhania
Managing Director & CEO
Mr. J.P. Bajpai
Mr. K.N. Khandelwal
Mr. Raj Kumar Lohia
Mr. Ashok Sharma
Mr. Achintya Karati
Mr. Jayant Narayan Godbole
Mr. Suparas Bhandari
Dr. K.B. Agarwal
Dr. Gaur Hari SinghaniaChairman
Dr. Singhania, our Chairman, holds a Master of Arts degree in Economics and a PhD degree in Economics from Agra University. He has corporate experience spanning 50 years. He has been associated with the Company as its Promoter Director and has led our Company
since its inception in 1994. He is also the Chairman of JKSL, Juggilal Kamlapat Cotton Spg. & Wvg. Mills Company Limited and J.K. Traders Limited. He has held the position of Chairman of the Merchant Chambers of Uttar Pradesh and Employers Association of Northern India.
He has also been the president of Uttar Pradesh Stock Exchange Association Limited. He has been a director of Pradeshiya Industrial Investment Corporation of
Uttar Pradesh, UttarPradesh State Industrial Development Corporation and the Uttar Pradesh State Sugar Corporation. Currently, he is also the chancellor of Dayanand Shiksha Sansthan and the president of Kanpur Education Society.
Customer Satisfactionz
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
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:
Leading position in attractive Northern India grey cement market.
Based on CMA data, Northern Indian cement manufactures have consistently operated at the highest levels of capacity utilization among India’s five regions. We believe this reflects the strong demand in Northern India for cement products relative to supply. Further, based on capacity expansions announced by cement manufacturers, we expect cement plants in Northern India to continue to operate at high utilization levels and anticipate continued strong demand for our grey cement products in the near and medium-term.
We believe that we are well positioned to take advantage of this demand, as the fourth largest grey cement manufacturer in Northern India, and the largest grey cement manufacturer in the state of Rajasthan.
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 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.
Proximity and access to large reserves of high quality limestone
We have access to large reserves of limestone for both our grey and white cement operations, which we believe are sufficient to sustain our operations well into the future. Based on independent geological surveys of different mines during 1996 to
2001, we believe that our limestone reserves are sufficient to support our current and planned capacity for approximately 40 years for both grey and white cement. (Put in risk - assuming we are able to renew our existing leases upon their expiry) As one of the first cement producers in Northern India, we were able to choose our limestone reserves in an area with high quality limestone resources. In addition to allowing us to produce white cement, which requires high quality limestone, it also provides us with a cost advantage, as we are not required to purchase sweeteners to improve the quality of limestone. Further, our manufacturing plants are in close proximity to our limestone reserves, resulting in lower transportation costs. Finally, our mines that supply our white cement plant at Gotan also have a supply of white clay, an important additive necessary for white cement production.
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 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, Maharasthra, Gujarat, Madhya Pradesh and Rajasthan. In addition, we have more than 4,000 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.
Experience and technical know-how
We have 30 years of experience in the Indian cement industry, which we believe provides us with the skills to maximize production efficiency, expand production capacity quickly and reduce costs. Over the years, we believe that we have developed long-term customer relationships and a strong reputation for quality. In addition, we have a proven track record of upgrading and modernizing our
production capabilities efficiently, having increased our production capacity at Nimbahera by more than 80%, from 1.54 million tons in 1998 to 2.8 million tons as of September 30, 2005. Further, we have a stable and experienced middle and senior level management team, many of whom have been working in our cement operations for more than 20 years. Our Nimbahera manufacturing facility was chosen by the World Bank and the Danish International Development Agency as one of the four training centers in India to serve as the “Regional Training Center” for Northern India. There are only four regional training centers for the cement industry in India, and we believe our operation of the training center provides us with access to state of art training aids, live working models, and technical expertise developed by well known national and international cement producers.
Architect of the Year Award (AYA)
Architecture was more or less identified with housing & more so with elite housing. However, many countries have used architecture effectively for public structures also, such as highways, metro rails, factories, harbours & any other public facilities. These projects/structures shall consume lot of building materials. If these structures have to look pleasing, relevant architecture has to be applied in their designs.
The subject of challenges to architecture vis-a-vis town planning, infrastructure development & affordable housing is being discussed in various countries through various forums. Mr.Yadupati Singhania, Managing Director, J.K. Cement Ltd., thought that we could contribute to this cause by encouraging outstanding talent in
the profession of architecture as a continuous process & thereby set an example for others in this profession to do better & better.
This is how Architect of the Year Award (AYA) began way back in the year 1990 (1st Architect of the Year Award). Awards were subsequently extended to architects of neighbouring countries from the year 1996 (7th Architect of the Year Award). To encourage state level architecture, State Architecture awards were also introduced from the award year AYA-98 (9th Architect of the Year Award).
Over the years, we have developed long-term customer relationships and a strong reputation for quality. In addition, we have a proven track record of upgrading and modernizing our production capabilities efficiently, having increased our production
capacity at Nimbahera by more than 80%, from 1.54 million tons in 1998 to 2.8 million tons as of September 30, 2005.We have a stable and experienced middle and senior level management team, many of whom have been working in our cement operations for more than 20 years.
Our Nimbahera manufacturing facility was chosen by the World Bank and the Danish International Development Agency as one of the four training centers in India to serve as the “Regional Training Center” for Northern India. There are only four regional training centers for the cement industry in India, and we believe our operation of the training center provides us with access to state of art training aids, live working models, and technical expertise developed by well known national and international cement producers.
Jaykaycem Ltd., a wholly owned subsidiary of J.K.Cement Ltd. is setting up Greenfield Grey Cement plant with split grinding unit in the state of Karnataka.
In Phase – I, Integrated plant of 2.5 million tons would be set up at Muddapur, distt. Bagalkot and in Phase – II , split grinding unit of 1.0 million tons would be set up at Bellary.
Substantial Land for factory & colony have been acquired and the entire factory & mining land will be procured by March’07.
Orders have been placed for main plant & equipment, gear boxes and other long delivery items Foundation stone laying ceremony was held on 8th Dec.’06 and civil work has started.
Integrated Unit (Phase – I) will be completed in Oct.- Dec.’08 quarter and Grinding Unit (Phase – II) would be commissioned after 6–12 months of Phase-I.
We produce grey cement and white cement. Grey cement produced by us consists of Ordinary Portland Cement (“OPC”) and Portland Pozzolana Cement (“PPC”). OPC has three principal grades that are differentiated by their compressive strengths, and consist of 53-grade, 43-grade and 33-grade OPC.
All our products comply with the quality standards specified by the Bureau of Indian Standards (“BIS”). Our cement products are marketed under the brand names J.K. Cement and Sarvashaktiman for OPC products, J.K. Super for PPC products and J.K. White and Camel for white cement products, which we believe are well known brands.
White cement based putty for luxurious and silky interior/exterior finish of your
dream home.
JK Wall Putty is White Cement based...
more
Grey Cement
Grey cement produced by us consists of OPC and PPC. There are also other cements in the market that we do...
more
White Cement We manufacture white cement under the brand names J.K. White and Camel.
White cement is produced using a...
more
Water Proof JK Water proof is another product from JK Cements Ltd. which is ISI approved.
It’s a water repellent material in...
more
Technologies change, needs change, and in turn products change. What remain unchanged, are values and ideas that propel any entity forward. Ideas that are concrete and unwavering, just like their outcome. At JK Cement we are crossing milestones, one after another, propelled by the following concrete ideas:
To provide products that fully comply with technical specifications committed to our customers, at the most competitive price.
To ensure complete reliability in our dealings with customers, distributors, suppliers & other partners.
To operate our manufacturing facilities in such a way, that they help sustain the environment & provide new opportunities for the underprivileged in that region.
To ensure that every department of our every office encourages new & better ideas and freedom of expressing the same, and cultivate a work environment that rewards excellence in every employee’s chosen area of work leading to a harmonious & fulfilling atmosphere.
To motivate every team member to challenge his last best performance and out do it continually.
To remain abreast and imbibe the latest technological trends for the benefit of our customers.
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
PRODUCTION (IN METRIC TONS)
Fiscal 2003
Fiscal 2004
Fiscal 2005
Six months ended
September 30, 2005
Nimbahera 2,323,283 2,272,760 2,414,196 1,256,942
Mangrol 570,464 718,572 912,419 493,211
Gotan 200,149 215,538 224,481 99,343
The production process for cement consists of drying, grinding and mixing
limestone and additives like bauxite and iron ore into a powder known as “raw meal”. The raw meal is then heated and burned in a pre-heater and kiln and then cooled in an air cooling system to form a semi-finished product, known as a clinker. Clinker (95%) is cooled by air and subsequently ground with gypsum (5%) to form Ordinary Portland Cement (“OPC”). Other forms of cement require increased blending with other raw materials. Blending of clinker with other materials helps impart key characteristics to cement, which eventually govern its end use.
There are two general processes for producing clinker and cement in India : a dry process and a wet process.
The basic differences between these processes are the form in which the
raw meal is fed into the kiln, and the amount of energy consumed in each of the processes. In the dry process, the raw meal is fed into the kiln in the form of a dry powder resulting in energy saving, whereas in the wet process the raw meal is fed into the kiln in the form of slurry. There is also a semi-dry process, which consumes more energy than the dry process but lesser than the wet process.
The basic steps involved in the production process is set out below:
All J.K. Cement plants are dry process plants. Limestone is crushed to a uniform and usable size, blended with certain additives (such as iron ore and bauxite) and discharged on a vertical roller mill, where the raw materials are ground to fine powder. An electrostatic precipitator dedusts the raw mill gases and collects the raw meal for a series of further stages of blending. The homogenized raw meal thus extracted is pumped to the top of a preheater by air lift pumps. In the preheaters the material is heated to 750°C. Subsequently, the raw meal undergoes a process of calcination in a precalcinator (in which the carbonates present are reduced to oxides) and is then fed to the kiln. The remaining calcination and clinkerization reactions are completed in the kiln where the temperature is raised to between 1,450°C and 1,500°C. The clinker formed is cooled and conveyed to the clinker silo from where it is extracted and transported to the cement mills for producing cement. For producing OPC, clinker and gypsum are used and for producing
Portland [Pozzolana] Cement (“PPC”), clinker, gypsum and fly ash are used. In the production of Portland Blast Furnace Stag Cement (“PSC”), granulated blast furnace slag from steel plants is added to clinker.
Code Of Conduct
At J.K. Cement, we view corporate governance in its widest sense, almost like trusteeship. The company’s philosophy on Corporate Governance is to enhance the long-term economic value of the company, its stakeholders i.e. the society at large by adopting better corporate practices in fair transparent manner by aligning interest of the company with that of its shareholders/other key stakeholders. Corporate Governance is not merely compliance and not simply creating checks and balances, it is an ongoing measure of superior delivery of Company’s objects with a view to translate opportunities into reality. In so far as compliance with the requirements of Clause 49 of the Listing Agreement with the Stock Exchange, Mumbai is concerned, the Company is in full compliance with the norms and disclosures that have to be made.
Constitution of the Audit Committee
Sr. No.
Name of the Director Status
1. Mr. Ashok Sharma Independent, Non Executive (Chairman)
2. Mr. Raj Kumar Lohia Independent, Non Executive
3. Mr. A. Karati Independent, Non Executive
4. Mr. K.N. Khandelwal Non-Independent, Non Executive
Constitution of the Remuneration Committee
Sr. No.
Name of the Director Status
1. Shri R.K. Lohia(Chairman) Independent Non-Executive Director
2. Shri J.P. Bajpai Independent Non-Executive Director
3. Shri Suparas Bhandari Independent Non-Executive Director
4. Shri A. Karati Independent Non-Executive Director
Constitution of the Shareholders Grievance Committee
Sr. No.
Name of the Director Status
1. Mr. J.P. Bajpai Non Executive, Independent (Chairman)
2. Mr. Raj Kumar Lohia Non Executive, Independent
3. Mr. K.N. Khandelwal Non Executive, Non Independent
UNAUDIT FINANCIAL RESULTS FOR THE QUARTER ENDED
BSE
Currency : Rupees Code : 532644
Price 110.65 Day High 120.00
BID 110.65 Day Low 109.55
Offer 0.00 52 Week High 132.00
Change On Day -4.20 52 Week Low 35.00
Percentage Change
-3.66
Last Trade Aug 10,2009 Opening Price 118.45
Daily Volume 20,789.00 Previous Closing 114.85
BSE quotes delayed by 15 minutes syndicated by www.capitalmarket.com
NSE
Currency : Rupees Code : JKCEMENT
Price 110.50 Day High 118.80
BID 110.50 Day Low 110.10
Offer 0.00 52 Week High 132.90
Change On Day -4.65 52 Week Low 31.25
Percentage Change
-4.04
Last Trade Aug 10,2009 Opening Price 117.50
Daily Volume 69,320.00 Previous Closing 115.15
CHART
Plot at Compare withBSE None
Select Period
Share Data
Market Price Data
BSE
Date High (Rs.) Low (Rs.) Sensex High Sensex Low
April 2007 159.00 137.50 14383.72 12425.52
May 2007 168.00 150.05 14576.37 13554.34
June 2007 162.00 136.40 14683.36 13946.99
July 2007 179.00 143.20 15868.85 14638.88
Show Chart
Day
Month
Year
Day
Month
Year
Show Chart
August 2007 181.95 148.00 15542.40 13779.88
September 2007 182.50 166.00 17361.47 15323.05
October 2007 204.00 164.00 20238.16 17144.58
November 2007 238.80 177.00 20204.21 18182.83
December 2007 256.70 212.65 20498.11 18886.40
January 2008 224.80 132.00 21206.77 15332.42
February 2008 183.50 158.00 18895.34 16457.74
March 2008 167.00 123.10 17227.56 14677.24
NSE
Date High (Rs.) Low (Rs.) Sensex High Sensex Low
April 2007 158.00 136.00 5043.03 4379.37
May 2007 168.50 150.00 5185.95 4908.99
June 2007 163.00 136.55 5223.82 4971.76
July 2007 177.80 145.15 5593.96 5218.32
August 2007 178.00 142.90 5411.29 4938.51
September 2007 182.45 165.20 6094.11 5424.33
October 2007 204.20 142.65 7169.67 6151.88
November 2007 239.00 175.10 7209.99 6701.81
December 2007 252.90 210.00 7479.08 6972.75
January 2008 224.75 130.00 7642.89 5955.22
February 2008 185.80 156.10 6672.07 5886.53
March 2008 169.80 123.25 6027.69 5517.59
Distribution Schedule as on 31.03.2008
No. of EquityShare held
No. of Shareholders
% of Shareholders
No. of Shares held
% of Shareholding
Upto 500 111711 98.18 4429932 6.34
501 to 1000 1285 1.13 953769 1.36
1001 to 2000 374 0.33 569494 0.81
2001 to 3000 113 0.10 280245 0.41
3001 to 4000 55 0.05 198419 0.28
4001 to 5000 49 0.04 232876 0.33
5001 to 10000 87 0.08 649794 0.93
10001 and above 110 0.09 62612721 89.54
Total 113784 100.00 69927250 100.000
Year 2007
Press Release Net Profit spurts by 60% for the quarter ended Dec. 31’2007.
Press Release Net Profit spurts by 114% for the quarter ended Sep. 30’2007.
Press Release Net Profit spurts by 59% for the quarter ended June 30’2007.
Transcript -Telecon 16th May 07
Press Release Net Profit spurts by 448% for the year ended March 31’2007.
26 March 2007 - The Economic Times
Year 2006
Recommenadations : Buy - Indsec Securities & Finance Ltd. 20 Dec.2006
Recommenadations : Buy - K B S Capital Managment Ltd. 4 Dec.2006
Corporate Report published in Fortune India Q2
30 Sept 2006 News paper :Reviws Quarterly Financial Results of Q2
30 July 2006 JK Cement Posts 843pc Profit in Q1
30 May 2006 Architect of the year award presented by J.K. Cement
28 May 2006 News Paper : Hindmata : Mumbai
27 May 2006 News Paper : Nav Bharat : Mumbai
17 May 2006 News Paper : The Hindu Business Line : Mumbai
15 May 2006 News Paper : Business Standard : Mumbai
12 May 2006 News Paper : The Financial Express : Mumbai
10 May 2006 News Paper : The Financial Express : Mumbai
9 May 2006 JK Cement Ltd. net up by 165% in Q4
7 May 2006 JK Cement Ltd. net up by 165% in Q4
5 May 2006 News Paper : Nav Bharat : Mumbai
4 May 2006 News Paper : Economic Times : Ahmedabad
2 May 2006 Corporate ScoreCard
24 Apr 2006 News Paper : The Economic Times : Mumbai
10 Apr 2006 www.sify.com
9 Apr 2006 News Paper : The Hindu Business Line : Mumbai
4 Apr 2006 News Paper : The Hindu Business Line : Mumbai
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
Organising 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 near by villages
Building for girls school at Gotan village
Construction of Hospitals
Sponsorship in eye camps
Construction of Dharamshalas
Construction of Panchayat building
Construction of Temple in township
Construction of school buildings in nearby villages
Construction of roads connecting with the highways
Provide drinking water facilities in nearby villages by bore wells
Operating an Industrial Training Institute affiliated with National Council for Vocational Training, Govt. of India
Running two schools : Padam Vidya Vihar- From K.G. to Vth Class & Kailash Vidya Vihar – From VIth to XII affiliated with Central Board of Secondary Education (CBSE) Govt. of India. More than 1000 students study in these schools
Finished Products in Year 2008-09.
Finished Products--------------------------- in Rs. Cr.
---------------------------Mar 2009
Product Name Unit InstalledCapacity
ProductionQuantity
SalesQuantity
SalesValue
Portland Cement Metric Tonnes
4,471,900 3,799,581.003,799,759.00 1,496.84
Cement (White) Metric Tonnes
400,000 249,958.00 249,196.00 0.00
Others - NA NA NA 0.00
Sales Not Specified- NA NA NA 0.00
Total 1,496.84
MARKETING STRATEGY
Distribution Channel. Physical Distribution of Good in India. Promotion Mix
Distribution Channel
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, Maharasthra, Gujarat,
Madhya Pradesh and Rajasthan. In addition, we have more than 4,000 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.
raw material
production house
carry and forward
White cement is for both consumer Product and Industrial Product. So J.K. cement ltd. uses both method of distribution. J.K. works ltd use personal selling/Project trade.
Marketing Middlemen:
J.K. Cement Ltd. uses Merchant middle men for selling their products.
Middle Man
(1) Distributors(2) Retailers
Physical Distribution of White Cement in India:
distributer
retailer
customer
Company uses surface transport for distribution of their product in India and Nepal.
(1) Roadways. (Trucks, Tempos)(2) Railways. (Goods Train)
Customer Care:
Linking Company to Customers
President (T & MS): M. P. Rawal
SPECIALITY OF SERVICE: SPECIALITY OF EXECUTIVE:
Before Purchase Experience
Before Application Nearness to
During Application Speaking your language
JK Cement Ltd. Works on 100% consumer’s satisfaction. Thus why JK Cement Ltd. has Customer Technical Services Department. This department of JK Cement works with Marketing department to teach the consumers, painters, masons and contractors about the JK Cement products. They organized different kind of programs to teach them. Which not only works as customer care department it also help in creating a good will in consumers and market for JK Cement products.
Programs run by Customer Technical Service Department
1. Product Application Seminars (PAS) : Company interact with the group of Architects/engineers &Industrial Consumers for innovative and new application. We jointly work with them to integrate these applications into their projects
2. Exhibition (EXH): Company organized many exhibition in different cities time to time to aware the consumers and professionals.
3. Counter Service Meet (CSM): In this activity a show is organized at stockist’s counter to increases the brand awareness and to respond to all sales related & technical problems faced by consumers during construction of their houses.
4. Demonstration of Application (DOA): Trained & experienced application Engineers/Supervisors/Masons/Painters give demonstration of various cements to customers.
5. Stockist & Dealer Awareness(SDA): They provide basic information about our products. Literature, packaging &trade policies to registered Dealers & Stockists.
6. Painter’s Technical Workshops (PTW): PTW is conducted to develop specialized Application awareness amongst painters about J.K. Wall Putty, Cement Paint& White Washing with White Cement application.
7. Mason’s Technical Workshops (MTW): MTW is conducted for masons throughout India for knowledge transfer of specialized applications related to construction activities.
PROMOTION MIX:
JK Cement Ltd. uses different promotion methods for their products.
AdvertisementSales PromotionPersonal Selling
Push Strategy
Advertising: Company uses media, magazines, point or purchase display, packing, sponsorship, billboards, banners for advertising their products in customers.
Sales Promotion: JK Cement uses Dealer-Retailers Sales Promotion Program for their products.
Gifts: They keep giving gifts to their distributors and retailer like T-shirts, umbrella, stationary and tools.
Discount Coupons: Consumers get money coupons in putty packets. Exhibitions: Customers Technical Service keeps organizing exhibitions
of products in fairs. Public Relations: Company improves its public relation through
customer care with help of Customer Technical Service.
PERSONAL SELLING: Company uses personal selling for their products in form of Project Trade. In this project trade marketing executives takes some construction work and provide all type of support to consumer at using company products.
Push Strategy:
Organization uses push strategy into the distributors and retailer by carrying trade promotion through field staff. These force intermediaries to more merchandise. Organization provides many facilities to distributors and retailer to increase the sale of J.K. Cement products in market.
marketer intermediary consumerDemand
Growth j k 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. 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.
The various raw materials required for the production of White Cement are:
Limestone Sand Iron Ore Nickel Titanium Chromium Vanadium
RESEARCH METHODOLOGY
The first step in a marketing research process is to define the problem chosen for
investigation. This step is a very significant one, since it is said, “A problem well
defined is half solved”. Once the problem is defined the next step, which is the
research design, becomes easier. The research design is the basic framework,
which provides guidelines for the rest of this research process. It is a map or blue
print according to which the research is to be conducted. The research design
specifies the methods for data collection and data analysis.
THE RESEARCH DESIGN
The research design used in the project is Exploratory Design. The investigation is
carried upon the selected area. The reason for choosing this design is to get
responses from the RETAILERS so that the company could discover new ideas
trough
Research Design
Exploratory Research Design
Descriptive Research Design
Focus Group
Primary Data analysis
Tool for collection of data
A structured questionnaire as placed at Annexure
Collection of data
1. Surveys 1. Observation
Sampling Technique
Random sampling method is used in the project.
Qualitative data
Quantitative data
SAMPLING
Probability Sampling
Non-Probability Sampling
Random sampling
Sampling
THE DATA SOURCE
The source of the data has been according to the response of retailers which mainly
includes interviews of retailers & with the help of pre drafted questionnaire.
Primary data
Primary data is collected through
Questionnaires
Respondents interview
Secondary data
Secondary data is also of much significance in the research, secondary data are
those data which was recorded earlier by the researcher or other researcher’s for
further use.
Websites
Newspaper articles
Brochures
Pamphlets
Magazines
Area covered in the survey
Jawahar vihar Malik mau Firoz Gandhi
ghosiyana Gandhi nagar Indra nagar
Nirala nagar Satya nagar Jail garden road
Kanal road Prabhu town Sindhi quarter
Jahana bad Vazeer gunj Gulab road
Ahmed nagar Kaharon ka adda Kila bazaar
Sabzi mandi Khali sahat Rana nagar
Police line Jail road
Demographic profile:
Age group: 18 to 70 years.
Gender: Male, Female
Target segments: This survey is done on general consumer, end users, contractors, painters.
Sample Size
The sample size has been fixed to 300 respondents. Cement & Wall Putty keeping in
mind statistical consideration and practical difficulties.
Method of analysis
Each data is tabulated and analyzed with the help of percentage response,
corresponding graphs are made use of each data is evaluated and findings are
recorded. The conclusion is drawn, and suggestions are made.
ANALYSIS
Consumers Behavior Analysis of J.K. Cement & Wall Putty in Lucknow
Q-1Which one product you use?
(a) J.K. (b)Birla
Response- Question1 has two options & people give their response as
163 respondents answer is YES.
27 respondents answer is No.
It can be shown as in pie chart as:-
A; 81.50%
B; 18.50%
Results & Findings: - It is clear that majority use J.K.
Q-2.Do you know about J.K. products?
(a)J.K. white cement (b)J.K. wall putty
Response- 200 people know about (a) it is 100%.
187 people know about (b) it is 93.50%.
It can be shown as in bar chart as:-
a b0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Series 2Series 1
Results & Findings: - From the above result, it is clear that wall putty needs
better attention.
Q-3 how do you come to know about the product?
(a) Advertisement (TV)
(b) Newspaper
(c) Pamphlet
(d) Retailer
Response-
(a) 92 people choose option (a) out of 200--------------46%
(b) 42 people choose option (b) out of 200---------------21%
(c) 58 people choose option (c) out of 200 -------------29%
(d) 8 people choose option (d) out of 200-----------------4%
It can be shown as in pie chart as:-
a; 46%
b; 21%
c; 29%
d; 4%
Response- The order of the responses of the awareness of the product is in the
order of a, c, b, d. The marketing department can take various important
information about advertising of their product.
Q-4 which one is the best way to advertise?
(a) Pamphlets
(b) Advertisement
(c) Professionals/Painters
(d) Retailers.
Response-
12 out of 200 choose option a ------6%.
146 out of 200 choose option b------73%.
38 out of 200 choose option c -------19%.
4 out of 500 choose option d --------2%.
a; 6%
b; 73%
c; 19%
d; 2%
Results & Findings: - The advertisement of the product by electronic media is
capable to aware the customers about the product. This result shows that
customers main source of information search are basic medium in cement industry.
Q-5 do you ask product by name?
This is question has two options.
(a) Yes (b) No.
Response-
186 people say ‘yes’ It covers 93%.
14 people say ‘no’ which is 7%.
a; 93%
b; 7%
Results & Findings: - From above chart it is clear generally people ask J.K.
White Cement by its name. It shows people trust on J.K. white cement products and
it is giving good competition to other brand.
Q-6 which external option affects you while choosing the product?
(a) Inspired by ads /own likings
(b) Retailer
(c) Painter
Response-
76 people out of 200, which comes 38%
96 people out of 200, which comes 48%
28 people out of 200, which comes 14%
a; 38%
b; 48%
c; 14%
Results & Findings: - Results show that people like own liking of any product.
But they also believe in retailer suggestion.
Q-7 does the retailer give suggestion while purchasing the product?
(a) Yes (b) No.
Response-
116 respondents out of 200 said YES.
84 respondents out of 200 said No.
a; 58
b; 42
Results & Findings: -so there is more requirements to tell retailer about
suggesting their customer for J.K. Product.
Q-8In how much time do you use the product?
(a) 0-1 year
(b) 1-2 years
(c) 2-3 year
(d) Above 3 year
Response-
19% respondents go with the option (a).
37% respondents go with the option (b).
29% respondents go with the option (c).
15% respondents go with the option (d).
It can be shown as in pie chart as:-
a; 19%
b; 37%
c; 29%
d; 15%
Results & Findings: - It is clear that we can prove our product quality is better
than other product.
Q-9 Are you satisfied with the availability of the product in your local area?
(a)Yes (b)No
Response-
186 respondents (93%) say YES out of 200 respondents.
14 respondents (7 %) say NO out of 200 respondents
It can be shown as in pie chart as:-
a; 93%
b; 7%
Results & Findings: - From above chart it is clear the availability of the J.K.
products is good in local raebareli market.
Q-10 Is it performing according to your perception?
(a) Yes (b) No
Response-
178 out of 200 choose option a ------89%
22 out of 200 choose option b--------11%
It can be shown as in bar chart as:-
a; 89%
b; 11%
Results & Findings: - the result is showing that the customer of J.K. products find
their product performing according to their perception.
Q-11 what is the order of liking the product quality?
(a) Whiteness
(b) Durability
(c) Strength
(d) Price
Response-
Option (a):- 86 respondents (around 43%) like whiteness in J.K. Wall Putty
out of 200 those who used the J.K. Wall Putty.
Option (b):- 38 respondents (around 19%) like durability of J.K. Wall Putty
out of 200 those who used the J.K. Wall Putty.
Option (c):- 72 respondents (around 36%) like strength in J.K. Wall Putty out
of 200those who used the J.K. Wall Putty.
Option (d):- 4 respondents (around 2%) like price in J.K. Wall Putty out of 200
those who used the J.K. Wall Putty.
Results& Findings: - Results show that people like whiteness and strength of
J.K. White Cement. It has good image in respondents. J. K. cement ltd is on their
standards.
Q-12 do you know about other wall putty?
(a) Yes (b) No
Response:
134 users say Yes. It covers 67% 66 users say No. It covers 33%.
It can be shown as in pie chart as:-
a; 67%
b; 33%
Results& Findings: - It is clear from the result that user of J.K. wall putty are
aware of the
Q-13.which one is more satisfying?
(a) J.K. white cement (b) J.K. wall putty
Response:
56 % user satisfied with the J.K. white cement. 44 % user satisfied with the J.K. wall putty.
It can be shown as in pie chart as:-
a; 56%
b; 44%
Results& Findings: -Mostly user of J.K. Products is satisfied with product
performance.
Q.14.do you suggest your friend to use this product?
(a) Yes (b) No
176 means 88% people say yes . 24 means 12% people say no.
It can be shown as in pie chart as:-
a; 88%
b; 12%
Results& Findings: it means that the product has better value among the user. It is the sign of better product quality.
Q.15 Do you have any complain about the product?
(a)Yes (b) No
22 people out of 200 means 11% user say ‘yes’. 178 people out of 200 means 89% user say ‘no’.
It can be shown as in pie chart as:-
a; 11%
b; 89%
Results& Findings: I find the user who have the complain have some misconceptions about the product.
NAME:……………………………………………………………………….
ADDRESS:………………………………………………………………..
………………………………………………………………………………….. OCCUPATION:…………………………………………………………..
CONTACT NO…………………………………………………………….
RESPONDENT’S SIGNATURE………………………………………..
BY:
SHAMSHAD AHMED
Integral university
Lucknow
CONCLUSION
After analyzing the primary data it is found that goodwill of J K White cement
product is very good in the market. People know about J K & it’s products & they are
using J K products. People, who are using J K Products, are satisfied with J K product
only a few people (1.30%) are not satisfied with J K products. Generally people
believe that J K White cement product provides more whiteness and strength in
comparison of other brand & mostly people rate J K Product on 9 at scales of
marking.
It shows that the company image of J K White cement is very good in the market.
SUGGESTIONS
Today the Indian market has become very competitive towards White Cement &
Wall Putty from the emergence of new brands. There is a lot of competition tap the
situation & growth tremendously in the field.
The response of Indian market towards the White Cement & Wall Putty is very
positive & forward looking.
The company can do much better by implementing these given
suggestion:-
1- Information broachers should be given with the bag of Putty & cement
so that consumer can know how to use these products better &
effectively.
2- Advertisement play an important role in awareness of White cement
&wall putty consumer foremost television advertising is the basic
gradient of awareness, but they also pay the attention to magazine,
wall painting and hoarding & effective painter meetings.
3- Introduce more choice of packaging i.e.: 2 kg. & 10 kg. Pack of putty.
4- Introduce colors pack which can be mixed easily with White cement &
can be used in wall painting.
5- There should be a customer care helpline related to the use of J. K.
products.
6- Packaging of product should be more attractive and effective
to protect from moisture.
7- Keep working on quality of their product by latest technology.
8- In white cement segment only two brands are in market. So
organization must be more aggressive in creating the brand of
products.
9- More effective relation with distributors and retailers because in this of
product these are main tool of selling the product and telling the
people about the product.
10-Professionals/Painters provide more knowledge regarding the product
quality and applying method.
Limitation
People generally do not want to participate in survey.
Some people give rude response.
People were not ready to give all information which was related with survey.
Some people did not tell their phone/mobile no.
Lack of technical knowledge of end users.
BIBLIOGRAPHY
1: www.jkcement.com
2: www .jk-white.com
3: www.google.com
4: www.wikipedia.com
Suggestion to the Company
I, Mohit Shukla doing summer training in your esteem Organization during summer training, have done retailer survey of “J.K. White Cement” and “Wall Putty” in Lucknow Region.
I found that there is need of promotion techniques in most of the places in Lucknow ,here is no any hoardings, wall paintings, boards as compare to leading competitor ”Birla ”.
There is a need to apply the strong and effective promotion technique. In so many areas respondents said that they do not get J. K. products in retail shops. Following suggestions may some worth to increase and exploit the market potential existing in these areas,
Need to supervise them periodically by seniors. Make sure the quality of delivery. Make sure availability of products in far rural areas timely. Recognize and list all the potential painters from rural as well as urban
areas and add them in Painters’ Meeting list at Block Level. Need to increase the “Painters’ Meeting” frequency from one to
three times annually. Inform the painters for meeting at least 15 days in advance. Improved packaging of the bag. Provide Training to use of J. K. Products and give them training
certificate and I. d. card from the organization at regional level. Which will help in marketing the products among the applicators of the products
Limitations
There is very low price arbitrage in the dealings of Dealers and Retailers.
The rate at which consumer purchase the cement from the dealers retailer are also bound to purchase the products at the same rate.
This causes a very complex situation for the retailers as consumers directly approach to dealers for purchase instead of retailers. This adversely affects the business of retailers and their business fall down.
This causes a break in the chain of dealer to retailer to consumer and retailer switch over from the chain as consumer directly to dealers.
BIBLIOGRAPHY
Marketing Survey of end users.
Google.com
APPENDICES
Analysis Consumer Behavior of J.K. White Cement and J.K.
Wall Putty in Lucknow region
Questionnaire:
Name of Respondent: ……………………………………………………………………….
Address: ……………………………………………………………………………………………
Age: …………………………………………………………………………………………………..
Contact No: ………………………………………………………………………………………
____________________________________________________________
Q-1. Do you know about white cement?
(a) Yes (b) No.
Q-2. What do you think that white cement is better than lime?
(a) Yes (b) No.
Q-3. Why is better than lime?
(a) Price (b) Durability (c) Strength
(d) Whiteness.
Q-4. Trough which medium you get the information about J.K. white
Cement?
(a) Pamphlets (b) Advertisement (c) Professionals/Painter
(d) Retailers
Q-5. Have you ever used this product?
(a) Yes (b) No.
If No, than please mention the reason.
………………………………………………………………………………………………………
………………………………………………………………………
Q-6. Factors you like in J.K. White Cement?
(a) Whiteness (b) Strength (c) Price
(d) Availability.
Than how much point would you like to give from 1 to 10 ?
….
Q-7. Do you know about J. K. Wall Putty?
(a) Yes (b) No.
Q-8. Do you know any more wall putty other than J. K. Wall Putty?
(a) Yes (b) No.
Q-9. Did you ever apply J. K. Wall Putty?
(a) Yes (b) No.
Q-10 Trough which medium you get the information about J.K. white
Cement?
(a) Pamphlets (b) Advertisement (c) Professionals/Painter
(d) Retailers
Q-11. Factors you like in J.K. Wall Putty?
(a) Price (b) Durability (c) Strength
(d) Whiteness.
Q-12. How is your experience with J. K. Wall Putty? (a) Good (b) Better (c) Best.
Than how much point you would like to give from 1 to 10? ……….
Q-13. Are you satisfied with J. K. Wall Putty and White Cement? (a) Yes (b) No.
Any Suggestion from your side.......................................................
………………………………………………………………………………………………………………………..
By MOHIT SHUKLA
Integral University
Lucknow. Respondent’s signature:………………………….
J.K. White Cement
J.K. White Cement
request a quote
