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1. INTRODUCTION TO THE INDUSTRY
CEMENT INDUSTRY IN NORTHERN INDIA:
1. 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.
2. Second largest 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 2008, and 15.5% of revenues and 38.11% of
our adjusted EBITDA from our cement operations in the six months ended September 31,
2009. 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.
3. Proximity and access to large reserves of high quality limestone :
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.
4. 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 (“Sarvashaktimaan”), 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.
5. 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
INTRODUCTION TO THE ORGANISATION
1.1 HISTORY BEHIND J K CEMENT
The initial "J.K." stands for a father- son team, namely: Juggilal Kamlapath Singhania
J .K. organization started in the year 1884 at Calcutta. J .K. started their business as a
Financier, Investor, Trading Supplier of cotton belts and manufacturer of small machinery
parts like ‘V' belts, etc. They established few small cotton textile industries also.
In the year 1914 they shifted their business from Calcutta to Kanpur where they
established many big industries like J.K. cotton Mills, Straw product Co, Lohia Mach,
J.K. Pulp and Raymond’s Woolen, etc.
In the year 1934 J.K. organization started one more division, as J.K. Synthetics Ltd. They
established various big plants of Nylon, Acrylic fiber, etc. at Kota and Tyre Cord,
Chemical and Pesticides at Jhalawar.
In the year 1974 under the same division one more unit was started for manufacturing of
Grey Cement at Nimbahera.
The Present cement factory was commissioned in the year 1974. The plant started its
production from 27th Dec 1974.
Ist plant / kiln was commissioned in 1974 and the capacity of this plant was 900 tonne per
day and 3 lakh tonne per year. After modification in Preheater, its present capacity is
1200 TPD.
Expansion of this plant took place in the year 1979, when 2nd kiln was commissioned
with a capacity of 1200 tonne per day and 7 lakh tonne per year. After modification in
Preheater its present capacity is 1800 TPD.
Again in the third phase, a kiln was erected in the year 1982 and production of this kiln
was 1350 tonne per day.
In the year 1988 a new technology was introduced in this 3rd Kiln that consisted of
precalcination process, which raised the capacity of this plant to 3400 tonne per day,
which was earlier 1350 tonne per day. In Aug.-2003 after again some modification in
Preheater and Folex cooler its capacity is increased to 5000 TPD.
Besides, J.K. cement plant is having its own diesel generator sets, producing power to
meet the power energy requirements.
Main raw material for cement is LIMESTONE, for limestone we have our own open cast
mines adjoining to the plant. Besides we have developed few more mines at Maliakhera,
Karoonda and Tilakhera for producing 10,000 tonnes limestone per day as needed.
J .K. Cement erected one more plant from Jan. 2001 with the capacity of 1400 tonne per
day at village Mangrol. In Nov.-2003 after modification in Preheater and installation of
Mechanical elevator its capacity increased to 2200 TPD. liabilities but also in maintaining
a satisfactory level of working capital. And the cash management is the part of working
capital management.
The project was carried out for understanding the People’s choice in Fixed Deposit
of its market potential.
The US $6 billion among the top 10 industrial houses in India. Hz the only Indian
company among the top tractor brands in the world. Hz Equipment Sector has recently
won the Japan Quality Medal, the only tractor company worldwide to be bestowed this
honors. It also holds the distinction of being the only tractor company worldwide to win
the Deming Prize. HZ is the market leader in multi-utility vehicles in India. It made a
milestone entry into the passenger car segment with the Logan.
The Group has a leading presence in key sectors of the Indian economy, including the
financial services, trade and logistics, automotive components, information technology,
and infrastructure development.
With over 62 years of manufacturing experience, the HZ has built a strong base in
technology, engineering, marketing and distribution which are key to its evolution as a
customer-centric organization. The Group employs over 50,000 people and has several
state-of-the-art facilities in India and overseas.
The HZ has ambitious global aspirations and has a presence on five continents. Mahindra
products are today available on every continent except Antarctica. M&M has one tractor
manufacturing plant in China, three assembly plants in the United States and one at
Brisbane, Australia. It has made strategic acquisitions across the globe including Stokes
Forgings (UK), Jeco Holding AG (Germany) and Schoneweiss & Co GmbH (Germany).
Its global subsidiaries. .
MIBL received its Direct Broking license from the Insurance Regulatory and
Development Authority in May 2004. The direct broking activities cover both Life and
Non-Life insurance for corporate and retail customers. MIBL is committed to providing
customized solutions geared to best meet the specific needs of customers.
One such customized, cost-effective life insurance solution, conceptualized by MIBL
foretail customers is a Group Credit Term cover - Suresh. This cover is offered to
customers availing of auto and tractor loans from. In the unfortunate event of death of the
customer, the outstanding loan amount is waived off and the customer’s family is able to
retain the vehicle.
MIBL is one of the few insurance broking companies in India to receive the prestigious
ISO 9001:2000 Certification for Quality Management Systems.
The main objectives of the study were to analyze by the for the day to day transaction to
meet the company requirement that how much cash the company need to keep with it .
Because if the company keep more fund then required then the company loose the other
investment opportunities or loose the interest with the company can gain to invest the
money in some other place.
In contractual agreement the client undergo an obligation to lift the specified amount
within the stipulated time as per the terms and conditions of the contract. Normally the
stipulated time is one month and quarter of the year. The specified quantity is fixed for
both the periods.
In case the clients uplift the specified quantity in stipulated time, Credit Note is given to
them. It encourages them to fulfill their obligations. The amount of credit note depends
upon the gravity of the party, the contractual amount of material and the time within
which the obligation is being fulfilled.
In general agreement the client can place order whenever they feel needed.Contractual
rates are less than the general rates for sulphuric acid. Contractual rate- 4800 General
rate-8500Generally the company settles for dispatch of small quantity and always keeps
provision to change the specified quantity in the contract. It is due to the following two
reasons:-
1 They are the general buyers who fetch more net realization than the contractual buyers.
2 It helps in dirisking the business and helps to adopt the policy of equal disbursement.
Thus the dependency on one client will decrease.
2 Terms of payment:-
The payment can be made either in advance or on credit terms.
In case of advance payment, demand draft, pay order or any other secured payment is
accepted but not the cheques because they are mounted to get dishonored
In case of supplies against letter of credit, it is being endorsed from bankers SBBJ Putholi
and checked thoroughly. The credit policy provides for 90 days interest bearing credit
against confirmed irrevocable letter of credit, without recourse of drawer, with interest @
10% per annum and for any delay beyond 90 days interest @ 12% will be payable.
For credit purchase the terms and conditions are different for different material. In case of
metals, some security money has to be kept with the company. In case of sulphuric acid
the terms are not so stringent because of the criticality of the material. Instead of keeping
some security money a bank guarantee can be availed. The reason being that the sulphuric
acid is in liquid state of nature. After using the storage capacity fully, no excess
production can be done because of the non availability of the storage tankers. In other
words production will be halted. So the efforts should be made to dispatch the acid as
acid as soon as possible. Therefore the terms and conditions are create the new ones.
3 Remittance voucher:-When purchase order is received with demand draft the remittance voucher number is created
in sap on-line system. Against this remittance voucher number sales order is prepared. When
the sales order is prepared it is duly verified and signed by the competent authority.
Purpose of remittance voucher
Every client has an account with the account department. Creating a remittance voucher
number means crediting the received money in his account on the value date. The value is the
date on which the payment is received. In case the clients uplift the specified quantity in
stipulated time, Credit Note is given to them. It encourages them to fulfill their obligations.
The amount of credit note depends upon the gravity of the party, the contractual amount of
material and the time within which the obligation is being fulfilled.
4 Discount policy:- The company provides for two types of discounts. They are as follows:-
1 Cash discount.
2 Quantity discount.
A cash discount of rs.20/-per mt is applicable for all purchases made against the advance
payments.On monthly combined off take following quantity discount is applicable .
Min.500mt :rs.50/-per mt
Min.1000mt :rs.75/-per mt
Min.1500mt :rs.100/-per mt
Min.2000mt :rs.125/-per mt
The aforesaid prices are exclusive of excise duty and sales tax.
5 Sales order:-Sales order is also called as delivery order. In case of sulphuric acid the sales order is
prepared by the company after the remittance voucher number is created.
In case of metals like zinc and lead the sales order is prepared and faxed by the regional
office for final dispatch. The most widely used zinc compound, zinc oxide is used in
valcanisation of rubber, as well as a ceramics, paints, animal feed, pharmaceuticals and other
application. A special grade of zinc oxide has long been used in photocopiers.
In case of Ex Factory policy, the company has the responsibility and liability to hand over the
material to the transporter upto factory gate only. In case of free on rail policy the company
has the responsibility and liability to send the material upto the destination or factory gate.
The Ex factory policy and free on rail policy is applicable only in case of metals and not in
case of sulphuric.
6 Loading:- The transporter collect the allow slip and report to factory main gate along with it. After
verification the trucks moved to the computerized weigh bridge for tare weight. It then moves
to the stock yard for mechanical loading bundle wise from crane. The truck after loading is
re-weighed and gross weight is recorded in SAP on-line system.
7 Final dispatch:- An invoice cum challan is prepared using weigh bridge interface. Ar-3A form is also
prepared in case of clearance of acid under ct-2 duty free.
The driver goes back to the main gate and takes out his truck after handing over the security
copy. After verification of the papers and Material loaded, truck is allowed to move out of the
factory premises.
Any consignment valued more than 2 crore must be declared to the insurance company by
way of fax/e-mail immediately. Consignments dispatched within the policy period must be
declared to the insurance company within 7 days from the close of a month. Otherwise the
same will not be entertained and treated as- insured.
The transporter copy is the most significant copy otherwise the transporter cant cross the
broder of the state. It is to ensure that it is a transfer only and not for any other purpose. In
order to make transfer 18-C form is to be filled. Every state has its own form and it is
necessary to fill other states forms also.
Documents to be prepared.
1 Invoice cum delivery challan:- It is a legal document which is to be prepared under
rule 11 of excise rules 2000. An invoice is created in five copies. They are as follows-
Original copy.
Duplicate for transporter copy.
Security copy.
Triplicate for assesses.
Extra copy.
Duplicate copy and security copy of invoice is handed over to the driver.
AR-3A form is prepared in case the party wants duty free clearance under (CT-2) excise no-2
rules 2001
Tax StructureFollowing are the taxes which are imposed every time the sales takes place.
State sales tax is imposed when the material is dispatched within the state.
Eg. 3% - Concessional rate
4% - Full rate
Central sales tax is imposed @ 16% on the total price of the goods dispatched.
Pricing Strategies. The company has its own pricing committee. It maintains and decides the prices on the basis
of LONDON METAL EXCHANGE.
The prices are revised after every one month
Concessional tax forms:-
1. CT-2 Form
2. CT-3Form
CT-2 Form is filled up by the client in order to gain exemption on excise duty. The
exemption depends on the final product to be produced. For instance if the party is producing
fertilizers, is it can avail the exemption. Different forms of fertilizers avail different
exemption.
In other words it can be said that the exemption is given on the items of importance.
CT-3 Form is filled up by the client in order to gain exemption on excise duty. It is given in
the following two cases:
Exports
Deemed exports (import substitution)
It is given for the purpose of encouraging exports and innovation
Insurance Policies.
The company have two types of policies.
Ex factory.
Free on rail (FOR)
In case of Ex Factory policy, the company has the responsibility and liability to hand
over the material to the transporter upto factory gate only. In case of free on rail policy the
company has the responsibility and liability to send the material upto the destination or
factory gate. The Ex factory policy and free on rail policy is applicable only in case of metals
and not in case of sulphuric acid.
The company has made insurance to the Oriental Insurance Corporation Ltd. Which is
a subsidiary of the General Insurance Corporation of India? It has taken two insurance
policies. They are as follows-
1. Marine Insurance (cargo)
2. Burglary Insurance.
Marine policy is an open policy. It covers the voyage to HZL units to any place in India to
various stock points/plants, offices of HZL. Parties (customers) of HZL anywhere in India to
any port rail/ air. Any consignment valued more than 2 crore must be declared to the
insurance company by way of fax/e-mail immediately. Consignments dispatched within the
policy period must be declared to the insurance company within 7 days from the close of a
month. Otherwise the same will not be entertained and treated as- insured.
The total sum insured is 1800 crores.
Burglary policy is a policy taken against any theft or pilferage. It has a total sum insured of
40 crores. The location of the property is
Zinc/ lead metal worth rs. 25 crores stored at HZL-CLZS.
Zinc/ lead metal worth rs. 15 crores at Zinc smelter.
A monthly declaration is necessarily to be the insurance company.
Due to power shortage as imposed by Ajmer electricity supply board J.K. established its
own Thermal Power Plant at village Bamania, near Shambhupura, which is generating
15 M.W. power every day, which is consumed by J.K. Cement Plant.
J K Cement also has a plant of 400TPD installed capacity of White Cement at Gotan,
Nagpur (Raj).
J.K. Cement has started the following projects:
1. Cement Project at Karnataka of over 5500 TPD and Thermal Power Plant of capacity
30 MW.
2. Thermal Power Plant at Nimbahera of 22 MW.
3. Waste Heat Recovery Plant at Nimbahera of 15 MW capacity.
4. Bhumi Poojan of Dr Gaur Hari Singhania Technical University at Bhatewar, Udaipur.
5. J.K. cement is one of the most productive, cost efficient cement producing plant in the
country, a company, believing in corporate responsibility to society, integrity and
fairness. The company’s cement is sold under the J.K. Sarve Shaktiman brand name,
enjoys good brand image and a price premium.
The following types of cements are produced by J K Cement Works.
(a) Ordinary Portland Cement (OPC)
(b) Portland Pozzolana Cement (PPC)
(c) Super Silicate Cement (SSC)
(d) Masonry Cement (MC)
J. K. Cement manufactures and markets cement and clinker for both domestic as well as
exports markets.
1.2 PRESENT CAPACITY AND PERFORMANCE
1.2.1 CLINKER PRODUCTION
Ist Plant / Kiln 1200 Tonne Per Day (TPD)
IInd Plant / Kiln 1800 TPD
IIIrd Plant / Kiln 5000 TPD
IVth Plant at Mangrol 2200 TPD
Total Capacity 10200 TPD
1.2.2 PRODUCTION ANALYSIS TABLE: IN TONS
Year Clinker Cement
2009-10 3170268 3511022
2010-11 2907196 3638786
2011-12 2917045 3690726
2012-13 3024091 3646220
1.3 FINANCIAL ANALYSIS: IN Million
1.Net sales increased 22.04% from Rs.1,49,683.56 lacs in 2010-11 to
Rs. 1,82,678.47 lacs in 2011-2012.
2.PBT increased 33.04% from Rs.23,396.06 lacs in 2010-11 to Rs.31,125.86
Lacs in 2011-2012
2. MANAGEMENT SET- UP
YearTurnover
PBT
2006-07 11087 522
2007-08 15297 2720
2008-09 18128 3466
2010-11 18765 2340
2011-12 222 22481 22 22481
3112
2.1 Corporate Level- Kanpur
Chairman - Dr Gaur Hari Singhania
Managing Director - Shri Y P Singhania
Group Executive President -Shri R G Bagla
2.2 Unit Head Level- Nimbahera
President - Shri D. Ravisankar
J K Organization
J K Cement Ltd.
J K White Cement Works
Gotan, NagaurJ K Cement Works (Grey Cement)
1. J K Cement Works, Nimbahera
2. J K Cement Works, Mangrol
3. J K Thermal Power Plant, Bamania
4. Projects-
J K Thermal Power Project, Nimbahera
J K Cement Project, Karnataka
BOARD OF DIRECTORS
CHAIRMAN
Dr. GAUR HARI SINGHANIA
MANAGING DIRECTOR & CEO
Mr. YADUPATI SINGHANIA
LIST OF DIRECTORS
Mr. J.P. BAJPAI
Mr. K.N. KHANDELWAL DIRECTOR
Mr. RAJ KUMAR LOHIA DIRECTOR
z
Mr. ASHOK SHARMA
Mr.JAYANT NARAYAN GODBOLE
GROUP EXECUTIVE PRESIDENT
Mr. R.G. BAGLA
(CORPORATE AFFAIRS) AND CHIEF FINANCIAL
OFFICER
Mr. A.K. SARAGOI PRESIDENT
(TECHNICAL AND MANAGEMENT SERVICES)
Mr. M.P. RAWAL PRESIDENT
PRESIDENT WORKS (GREY CEMENT)
Mr. D. RAVI SHANKAR
WORKS (WHITE CEMENT)
Mr. B.K. ARORA PRESIDENT
SENIOR VICE PRESIDENT MARKETING (GREY CEMENT)
Mr. R.C. SHUKLA
SENIOR VICE PRESIDENT MARKETING (WHITE CEMENT)
Mr. V.P.SINGH
COMPANY SECRETARY
Mr.SHAMBHU SINGH
4. J K Marketing Organization & RTC – North
4.1 J K MARKETING ORGANISATION
The head office of Marketing Department of J K Cement Ltd. is at Delhi,
which is headed by Sr. V P (Marketing-Grey Cement) and Sr. V P
(Marketing White Cement). The White Cement is sold all over India and the
Grey Cement is sold in the States of Rajasthan, M.P., U.P., Haryana, Punjab,
Gujarat and Delhi. With the commissioning of J.K Cement Project,
Karnataka Southern region will also the Covered for Grey Cement.
Marketing team
4.2 Regional training Centr
The Regional training Centre – North is a premier training centre of North
India promoted with assistance from World Bank, DANIDA and Govt. of
India as a unique HRD project in Cement Industry is also attached with J K
Cement Works as Lead Plant. It is equipped with modern training aids and
caters to the skil l enhancement and competency developmental needs of
Grey Cement 79 Members
White Cement101 Members
Works closely with customers
to retailers and increase
awareness and usage of with
cement producers
Co-ordinate with dealer
network and direct consumer.
Efforts to increase production
of blended cement to meet
growth in demand
more than 20 cement and other plants. It has trained over 8000 technical and
managerial personnel during the last 14 years.
The centre has conducted many tailor-made in-house programs for cement
and other industries in India and abroad including for Oman Cement, Oman
and Star Cement, Dubai.
RTC has specialized packages / modules in Mining, Process, Maintenance
disciplines like Operation & Maintenance of HEMM / Gear Boxes / Pumps /
Compressors / Electrical & Electronics Equipments / Energy Conservation /
Environment Management and Machinery Alignment, etc. designed and
developed by renowned International / National agencies like FLS Denmark,
NCCBM, TATA Interactive Systems, VEC, NITTR, ect. More than 100
senior line mangers form ten plants have been trained at Denmark, NITTR,
Bhopal and Chennai, who act. as resource persons for these programs.
Besides, OEM's and management experts of national repute are invited for
various technical and management programs to make them effective and
gainful experience for the participants.
5. SOCIAL RESPONSIBILITY
Educational Services :-
Construction of rooms in Govt. College at Nimbahera.
Running JK Institute of Technology, ITI in five trades affiliated to NCVT.
Running 10+2 CBSE affiliated School.
Running Regional Training Centre for Cement technocrat's aided by WB &
DANIDA.
Various constructions in nearby Govt. Schools of Chittorgarh District.
We are involved in girls school (under construction) and committed reasonable
financial contribution for above.
Medical services Rs. 36 lacks contribution for the construction of Govt. Hospital at Nimbahera.
Ambulance to Govt. Hospital.
Free facility of pathological laboratory for the persons of surrounding area.
Financial contribution to various NGOS for medical camps in the district.
Financial contribution for construction of dispensary & health centre in nearby
villages.
Free Homeopathic consultancy/medicines for the patients of nearby area.
Religious services :
Radhakrishna tempie at colony premises.
Prayer hall in hanuman temple in Nimbahera.
Bheemkeshwar temple in staff colony.
Dharmashala at Bhanwarmata (tourist / religious place.)
8 room for Dharamshala at Pashupati Nath temple in Mandsaur (M.P.).
Various temples in Number of nearby villages.
Sports services Sports infrastructure like wooden badminton court, table tennis court, billiard room,
and cricket ground, volleyball ground in colony campus.
Sponsoring all India. youth football, volleyball and badminton tournaments.
Sponsoring inter-district tournament.
Arranging summer camps for various sports.
Other social services Construction of approach roads in and around villages of mining area.
Digging of tube wells.
Supply of tube well pumps.
Construction of water tanks.
Supply of drinking water in tankers in nearby needy places during summer.
Regular plantation in plant, colony and nearby villages.
Direct and indirect employment to thousands of persons of surrounding area.
Financial helps to NGOS.
Financial aid to organize religious festivals by municipal board.
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 architect 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).
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.
Afforestation 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 focussed 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 levelled which are then covered with black
cotton soil scraped from other parts of the pit only. This forms the bed for plantation or
afforestation. The height of the dumps are kept only 5 to 6 mtrs. So that there will be no
chance of destabilising of these dumps after plantation in the long run.
Besides, JK Organisation, is also involved in setting up a number of Primary Schools,
Secondary Schools, Industrial Training Institutes, Institutes of Management & Research,
Institute of Medicine, Institute of Cardiology, Institute of Radiology & Cancer Research and
Dr. Gaur Hari Singhania Academy of Productivity Science & Environmental Engineering.
JK CEMENT PLANT,NIMBAHERA
CEMENT MANUFACTURING PROCESS : There are three production lines involving five significant manufacturing
stages, namely crushing, raw meal grinding, clinkerisation, cement grinding and packing.
At crushing stage, run of limestone mines is crushed to desired size so as to
achieve optimum grinding efficiency in the Raw Mills. Crushed limestone is stacked by
stacker in a stockpile and reclaimed by means of a reclaimer. The stockpile serves as a
buffer stock storage. Partial quantity of laterite & bauxite is also added during crushing.
In Raw Mill, crushed limestone with late rite is fed through weigh feeders.
The feed quantity and ratio of feeds are controlled based on the chemical analysis results
from QCX (X-ray) / Laboratory. The raw material is ground in ball mills and the fineness
(residue) is controlled by separator damper control. The raw material is also ground in
VRM where finances is controlled
By separator's speed. The ground raw meal is blended for homogeneity and stored in raw
meal storage silo or in C.F. silo.
Clinkerisation is the heart of cement manufacturing process, where the raw meal is fed to
the preheater at controlled rate through electronic weigh feeder and / solid flow meters. The
feed enters the kiln though cyclones (for Unit I, II) and through Precalciner (for Unit III)
and the fuel is fired at the kiln outlet end (also in precalcienr for unit – III) The counter
current of hot gases against the material flow right from preheater stage to kiln outlet
converts raw mix to clinker by pyroprocessing stages like calcinations and clinkerisation.
The clinker is cooled in coolers.
Clinker is transported to clinker yard for storage. Clinker and gypsum are thereafter ground
to a specific fineness in bqll mills to produce final product i.e. cement. The blaine (fineness)
of cement is controlled by separator's speed in close circuit grinding and by mill fan damper
opening during open circuit grinding.
Cement is transported to cement silos for storage. Cement is drawn from cement silos for
packing in bags by mechanical rotary packers.
1.1 DEFINITION OF CEMENT
Cement can be defined as any substance, which can join or unite two or more pieces of
some other substance together to form a unit mass. Cement, as used in construction
industries, is a fine powder which when mixed with water and allowed to set and harden can
join different components or members together to give a mechanically strong structure.
Thus, cement can be used as a bonding material for bricks or for bonding solid particles of
different sizes (rubble masonry) to form a monolith.
1.2 HISTORY OF CEMENT
The history of cement is the story of civilization from primitive caves of pre-historic times to
the skyscrapers of the modern age. It is said that the use of cement is form the period of use
of fire. Egyptians utilized gypsum plaster as cementing material as early as 3000 BC
building their monuments.
However, It was in 1824, sixty-eighty years after the discovery of hydraulic properties of
lime Joseph Aspdin patented his product, which was called "Portland Cement" The plants
manufacturing portland cement outside England were commissioned in Belgium and
Germany in 1855. The interest that is evoked in the technology o f cement resulted in the
development of Rotary kilns in 1886.
Modern cement is the outcome of the combined research and development efforts of
chemists, technologists and architects. The cement technology is an offshoot of the overall
development in other industries, technology, constructional activities and knowledge and
the availability of raw material.
1.3 TYPES AND USES OF CEMENT:
Types of Cement Application
Ordinary Portland Cement
(OPC)
General construction
Portland Slag Cement General construction and marine works.
Portland Pozzolona Cement
(PPC)
General construction, hydraulic construction &
marine.
White Portland Cement Architectural purposes, decorative work and in
manufacturing of titles.
Oil Well Cement Connecting the steel casing to the walls of gas oil wells
at high temperature and to seal porous formations in
petroleum industry.
Low Heat Portland Cement Where low heat on hydration is required as in mass
concrete for dams.
Super Sulphated Cement In a varity of aggressive conditions like marine works,
concrete sewers carrying industrial effluents.
High Alumina Cement Mainly as refractory cement and as structural material
giving high early strength development in cold regions.
1.4 RAW MATERIAL
1.4.1 Raw Materials-
Limestone (calcareous) and clays (argillaceous) are the conventional raw materials mostly
used in cement industry. Sometimes sandstone (siliceous),bauxite (aluminous) and iron ore
(ferruginious) are used, as corrective material to maintain desired composition for potential
property of clinker.
Cement manufacturing process involves-
Preparation of raw mix by crushing, grinding and blending of raw materials in definite
proportions.
Burning the raw meal at clinker temperature (14500C) in a kiln.
Grinding the resultant clinker to fine powder with certain amount of gypsum to regulate
setting of cement.
1.4.2 Types of Raw Material
It is known that raw meal feed for cement manufacture basically consists of two components -
Calcium carbonate
Alumino silicates
Due to depletion of cement grade limestone, it is necessary to go in, more and more, for
byproducts and waste materials of chemical, metallurgical, coal and other industries as raw
material for cement manufacture.
1.4.3 TECHNOLOGICAL ASSESSMENT OF RAW MATERIAL
Raw materials are characterized by
(a) Chemical composition
(b) Mineral composition
(c) Physical composition
(d) Mechanical characteristics
Composition of Ordinary Cement :
Ordinary Portland Cement is the basic cement and it has three grades namely 33, 43 and 53
respectively. Limestone is the principal raw material for the manufacturing of cement. Our
country has enough reserve of raw material needed in the cement industry. Cement
consumption growth is highly correlated to the GDP growth and serves as a leading indicator.
More industrial activity and greater purchasing power means more asset formation and
construction and thus more consumption of cement.
Ingredient Percentage Range
Lime 64 64-68
Silica 22 17-25
Alumina 5 3-6
Calcium sulphate 4 3-5
Iron Oxide 3 3-4
Magnesia 2 0.1-3.0
Sulphur 1 1-3
1 0.2-1.0
1.5 TYPS OF PROCESS
Basically there are two types of process for cement manufacturing that is -
Hydro Processing (Wet Process)
Pyro Processing (Dry Process)
We are using Pyro Process in JK Cement Works.
1.5.1 PYRO PROCESSING
In order to manufacture cement from the raw mix, it is required to heat raw meal to a
temperature of 1450OC, thus carrying out SINTERING OR CLINKERISATION. The
burning process requires an oxidising atmosphere in the kiln, as in the opposite case a
clinker of brown colour (contrary to the normal greenish –grey) will be formed and the
resulting cement will be quicker setting and with lower strength.
1.5.2 Chemical Transformations
During heating of the raw meal to the burning temperature 1450oC (clinkerization or sintering)
certain physio-chemical processes take place. These include:
Dehydration of the argillaceous minerals; decomposition of the carbonates (decarbonisation or
expulsion of CO2 commonly known as calcination); reactions in solid phase and reactions with
the participation of one liquid phase and crystallizations.
These processes are influenced by chemical factors in the raw meal (such as its chemical
composition), by mineralogical factors (its mineralogical composition), by physical factors
(fineness or particle size in the raw meal), homogeneity and other factors. The complete course
of these endothermic reactions plays a decisive role in quality of the resulting cement.
In per-heater kiln, the first five transformations shows in figure 4.1 will take place in pre-
heater tower. The decomposition of limestone and other carbonates will primarily take place
in the calciner vessel where the calcination temperature is maintained by injection of fuel.
The last two transformations will take place in the rotary kiln.
The carbonate Ca CO3 decomposes between 600 – 800OC to form CaO. Quartz and clay will
have started decomposing slightly before that to liberate free reactive Al2O3 and SiO2
The CaO being formed at this stage, now reacts with SiO2 to form C2S and later with more
CaO to form C3S. Some CaO will also react with Al2O3 and Fe2O3 to form various
intermediate components such as CA, C12A7 and others, which will decompose at higher
temperature at later stage.
C2S content is seen to grow steadily during the heating and reach maximum content at
approx. 1300OC which is a point where liquid phase appears. The major part of C2S is then
transformed to C3S in the liquid phase and the final content of C2S in the clinker is less than
the content of C3S.
1 MINING
1.1 Function:
Planning and executing a systematic exploration programme.
Draw scope of drilling campaign. How to carry out survey and perform drilling activities for
exploration purpose.
Establish system for computerized mine-planning in order to ensure supply of limestone with
consistent quality.
Planning and executing drilling and blasting programme in normal course at site to take
optimum output from blasting as well as achieving economy in explosive consumption.
(Approximate boulder size: 1.0 M * 1.4 M * 1.1M)
Loading and transportation of lime stone boulders to crusher site.
Implementing statutory requirement for safety and environment.
Resources:
(a) Explosives
(b) Equipment:
Drilling Machines
Excavators / Shovels
Dumpers
Dozers
Loaders
Operations:
Drilling and Blasting
Loading and transportation
2 CRUSHER, STACKER & RECLAIMER
2.1 CRUSHER
2.1.1 Purpose:
Size reduction from 1.0M * 1.4M * 1.1M boulder to 25mm size limestone pieces.
2.1.2 Common type of Crushers:
Double Toggle Jaw Crusher (Capacity: 400 TPH): Used as primary crusher.
Swing Hammer Crusher (Capacity: 200 TPH) used as secondary crusher.
Compound Impactor (Capacity: 800 TPH) combined unit of primary and secondary crusher.
2.2 STACKER & RECLAIMER
Purpose:
Homogenization of crushed limestone.
2.2.1 Stacker:
Type of Pile: Longitudinal.
Details of Piles: 20000 – 30000 tonnes per pile.
Height of pile upto 11.00 meters.
The stacker moves on longitudinal rails.
2.2.2 Reclaimer
Type: Bridge Scrapper Type.
Rated Capacity: 600 tonnes per hour It will vary from plant to plant depending on the
production requirement (in TPD).
Working Principle: Cuts Stack Pile in slice from parallel to face of pile. Shifting material
(limestone) to belt with the help of scrapper.
3 GRINDING
INTRODUCTION-
3.1 Materials used for grinding
Limestone and additives (Raw Mix)
Coal and other fuels
Clinker
3.2 Feed size of incoming materials
Limestone
– 25mm Size for Ball Mills
- 35mm Size for VRM (Segregated)
(Secondary Crusher is used to feed Ball Mills)
Coal – 25mm size
Clinker – 25 to 35 mm size.
3.3 Fineness of output materials
Raw Mix: 15 – 17 % Residue On 90 #
1.8 – 2.2 % Residue On 200 #
Coal Powder: 15 – 17% Residue On 90 #
18-22 % Residue On 90 #
(For use in Pre-Calciner, there is separate arrangement to grind coal)
Cement: 33 Grade – 2600 To 2800 Blaine
43 Grade – 2850 To 3000 Blaine
53 Grade – 3200 To 3400 Blaine
3.4 Grinding Systems
Raw Mix:
- Ball Mill
- Vertical Roller Mill
- Combination of Roller Press and Ball Mill
(Generally open circuit is used in wet process and closed circuit is used in dry process. In closed
circuit systems, fixed and dynamic separators are used.)
Coal and fuel:
Ball Mill
Vertical Roller Mill
(Closed circuit used)
Clinker Grinding:
Ball Mill
Combination of Roller Press and Ball Mill
(Open circuit and closed circuit used. In closed circuit systems, fixed and dynamic separators are
used.)
3.5 Materials used for grinding
Limestone and additives (Raw Mix)
Coal and other fuels
Clinker
3.6 Grinding of Cement:
In a modern cement plant, the total power consumption is about 100 Kwh / tonnes whereas
cement grinding process accounts about 40%. The quality of final cement product depends on
operational mode and parameters of cement grinding plant.
Cement has to be ground fine enough to meet the requirements for strength properties specified
in current standards. As it takes quite long time to determine especially the late strength, the hour
–to-hour and day –to-day control of cement grinding has to be based on cement fineness.
During heating of the raw meal to the burning temperature 1450oC (clinkerization or sintering)
certain physio-chemical processes take place. These include:
Dehydration of the argillaceous minerals; decomposition of the carbonates (decarbonisation or
expulsion of CO2 commonly known as calcination); reactions in solid phase and reactions with the
participation of one liquid phase and crystallizations.
These processes are influenced by chemical factors in the raw meal (such as its chemical
composition), by mineralogical factors (its mineralogical composition), by physical factors (fineness
or particle size in the raw meal), homogeneity and other factors. The complete course of these
endothermic reactions plays a decisive role in quality of the resulting cement.
In per-heater kiln, the first five transformations shows in figure 4.1 will take place in pre-heater
tower. The decomposition of limestone and other carbonates will primarily take place in the
calciner vessel where the calcination temperature is maintained by injection of fuel. The last two
transformations will take place in the rotary kiln.
The carbonate Ca CO3 decomposes between 600 – 800OC to form CaO. Quartz and clay will have
started decomposing slightly before that to liberate free reactive Al2O3 and SiO2
Strength development of concrete is the result of hydration of the particles. Smaller the particles,
larger the specific surface and faster the hydration. Particles coarser than 30–50 microns hydrate
very slowly and will only affect late strengths. On the other hand, superfine particle with 2-3
micron size may hydrate before the concrete has been cast and will have limited influence on
strength development.
4 KILN SYSTEMS
4.1 Purpose:
To transform Raw Mix into CLINKER through PYRO-PROCRESSING.
4.2 Sections of a Typical Kiln System:
KILN feed system.
Pre-heater (Four stage to six stage)
Pre-Calciner (ILC, SLC)
Kiln
Cooler (including Clinker Hammer)
Planetary Cooler
Grate Cooler
Type of Cement:
Grey Cement
White Cement
4.3 Processes:
Wet Process
Semi-dry Process
Dry Process
5 PACKING PLANT
5.1 Purpose:
To pack cement in appropriate packages suitable for consumption at site.
5.2 Common packs available:
Grey Cement:
50 Kg bags
Bulk handling of cement has started at selected places e.g. bulk-handling
project near Mumbai by ACC.
White Cement:
50 Kg and small size packs as per market demand.
5.3 Packers:
Mechanical Packers
Electronic Packers
6 QUALITY CHARACTERISTICS OF CEMENT
6.1 INTRODUCTION:
The survival and well being of the cement plants / companies in the market depends upon the
quality of product and its cost. Quality and cost together define the value of the product (i.e. ce -
ment in this case). The concept of quality has undergone a sea change from mere quality control
of the product to total quality management (T.Q.M.) with emphasis on quality defined as “totality
of features and characteristics of product / services that bears on its ability to satisfy the stated
and implied needs”.
The quality of the product depends on variety of factors such as technology, quality of raw
materials and fuels, operation and quality control procedures to produced consistent product.
The broad quality parameters of cement relate to chemical and physical properties as per IS Code
are as mentioned below:
6.2 CHEMICAL PROPERTIES:
Loss on ignition [LOI]
Insoluble residue [IR]
Sulphur trioxide [SO3]
Magnesium oxide [MgO]
Total chloride [Cl]
Lime saturation factor [LSF]
Alumina modulus [AM]
6.3 PHYSICAL PROPERTIES
Fineness
Consistency
Setting time – initial and final
Soundness
Compressive strengths (3 days, 7 days and 28 days)
Heat of hydration
Drying shrinkage [for PPC]
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.
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.
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.
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
Apply uniformly the first coat of J.K. Wall Putty with blade/trowel on the wall from bottom
to top. Apply second coat after the first coat has dried completely. Limit the total thickness of
2 coats to 1.5 mm. Allow complete drying and then use fine emery paper to remove the
application mark if any. Any kind of paint can be applied on this surface. Use water for
curing before applying paint.
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.
Comparison Between J.K. Wall Putty and Traditional Putty
Properties J.K. Wall Putty Traditional Putty
Binding
Property
J.K. Wall Putty is white cement based putty.
Hence it possesses good binding property.
Due to only chalk powder,
it has very less binding
property.
Durability
Due to its cement base, J.K. Wall Putty
becomes an integral part of plaster and
hence more durable.
Less durable
Coverage Area
J.K. Wall Putty covers more surface area
exceeding 20 Sq. ft./kg. In 2 coats on a new
plastered wall.
Covers less surface area.
Water
ResistanceJ.K. Wall Putty resists dampness. Does not resist dampness.
Flaking No Flaking.
Flaking occurs when it
comes in contact with
water.
Consumption of
Paint
J.K. Wall Putty requires less paint due to
low absorption.
Requires more paint due
to high absorption.
Primer Coat No primer coat is required. Primer coat is must.
Appearance
Better appearance due to very high
whiteness of Putty. NCCBM certifies 93%
whiteness.
Appearance is yellowish.
PigmentationLess pigment consumption yet bright
colours.
High pigmentation.
Consumption yet dull
colours.
Consistency
Consistency in quality as it is made under
stringent quality control with tested
ingredients under one roof at company
premises.
No consistency.
Cost
Ultimate cost is less due to
(a) Long life span
(b) No Primer cost
(c) Less paint consumption &
(d) No use Of enamel & varnish while
preparing putty paste.
Ultimate cost is more.
Advantages over Plaster of Paris (POP)
1. White cement based product therefore strength is more than gypsum based POP.
2. J.K. Wall Putty can be applied on exteriors/exposed surfaces whereas the same is not
possible with POP.
3. J.K. Wall Putty is very white in appearance while POP is yellowish.
4. In case of J.K. Wall Putty no primer is required before painting, whereas it is
compulsory for POP surfaces.
5. J.K. Wall Putty resists seepage while POP does not.
Grey cement produced by us consists of OPC and PPC. There are also other cements in the
market that we do not produce, such as Portland slag cement, oil well cement, sulphate
resistant cement, rapid gardening cement, low alkali cement, low heat cement and super
finish cement.OPC has three grades that we produce, that are differentiated by their
compressive strengths, expressed in mega pascals (“MPa”), as specified by the BIS.These
grades are 53-grade OPC, 43-grade OPC and 33-grade OPC, with 53-grade OPC having the
highest compressive strength.The customer selects the grade of OPC based on the intended
application. Our most popular cement, by sales volume, is 43-grade cement, with 53-grade
cement being used in applications which require high strength characteristics.
Ordinary Portland Cement
OPC is produced by inter-grinding cement clinker prepared in a rotary cement kiln with
gypsum. Each metric ton of OPC requires approximately 0.95 metric tons of clinker and
approximately 0.05 metric tons of gypsum. The range of applications, the physical and
chemical requirements specified by BIS and strength of the three grades of OPC are
discussed below:
53-grade OPC (IS:12269-1987): 53-grade OPC is a high strength cement. According to the
BIS requirements, 53-grade OPC must have a 28-day compressive strength of no less than 53
MPa. For certain specialized products, such as pre-stressed concrete and certain pre-cast
concrete items requiring high strength, 53-grade OPC is considered useful as it can produce
high-grade concrete at lower cement content levels. We produce 53-grade OPC by exposing
the clinker
We manufacture white cement under the brand names J.K. White and Camel. White cement
is produced using a different quality of limestone and is distinguished from grey cement by
its white colour. 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 fibre 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.
JK Water proof is another product from JK Cements Ltd. which is ISI approved. It’s a water
repellent material in powder form which specially formulated and designed to prevent
passage of water through pore and capillaries of the concrete, thereby imparting to concrete
an efficient, dependable and durable water proofing protection against rain, ground water,
moisture, dampness, humidity etc. JK Water proof is free from chlorides and is based on
material which disperses rapidly and makes a homogenous mix with cement. It conforms
with IS:2645-1975 (Reaffirmed 1987). JK Water Proof pack is available in 2 different sizes
i.e. 1 kg & 25 kg.
PRODUCTION ANALYSIS TABLE : IN TONS
Year Clinker Cement
2006-07 1753970 1713202
2007-08 1627645 1807573
2008-09 3170268 3511022
2009-10 2907196 3638786
2010-11 2917045 3690726
2011-12 3024091 3646220
2012-13 3050050 4280500
FINANCIAL ANALYSIS : IN MILLION
Year Turnover PBT
2008-09 11087 522
2009-10 15297 2720
2010-11 18128 3466
2011-12 18765 2340
2012-13 22481 3112
OFFICES OF JK CEMENT HAS COVER A MASSIVE AREA IN INDIA
“Developing Marketing Strategy by Knowing Market share and promotional
scheme of JK Cement Works ”
Market share, in strategic management and marketing is, according to Carlton O'Neal, the
percentage or proportion of the total available market or market segment that is being serviced by a
company. It can be expressed as a company's sales revenue (from that market) divided by the total sales
revenue available in that market. It can also be expressed as a company's unit sales volume (in a market)
divided by the total volume of units sold in that market. It is generally necessary to commission market
research (generally desk/secondary research to determine, although sometimes primary) to estimate the
total market size and a company's market share.
Increasing market share is one of the most important objectives of business. The main advantage
of using market share as a measure of business performance is that it is less dependent upon macro
environmental variables such as the state of the economy or changes in tax policy. However, increasing
market share may be dangerous for makers of fungible hazardous products, particularly products sold into
the United States market, where they may be subject to market shares liability.
Promotion Scheme
Promotion is the third P of the marketing mix, a pre-eminent and integral channel to
communicate to the consumers. Such an eclectic amalgam of activities is this third segment of the
marketing mix that just like the marketing mix, there is a promotion mix as well, which is inclusive
of both direct and indirect methods to bring the brand communication forward to the target market
and shape the positioning of the brand and the company.
Precisely, there are two types of promotion methods. One set of methods deals with the
direct mode of promotion while the other strategy aims for the oblique and indirect methods.
The direct methods are inclusive of some of the most conventional and well-known methods, the
most popular of which is advertising.
Then follows personal selling (used mostly in pharmaceutical companies), publicity,
attractive displays (kiosks), special event sales and manufacturer's aids. Coming to the indirect styles
of promotion, they are the more unconventional and not so popular yet effective methods. In the
recent years, these methods have managed to reach a large number of target audiences in a cost-
effective manner. These indirect methods of communication include public relations, customer
relations, customer services,
Objectives of promotion
Promotion tools are varies in their specific objectives. A free sample stimulates consumer trial,
whereas a free management-advisory service aims at cementing a long term relationship with a retailer.
Sellers use incentive type of sale promotion to attract new tries, to reward loyal customers, and
to increase the repurchase rates of occasional users. Sales promotions often attract brand switchers, who
are primarily looking for low price, good value or premiums. If some of them would not have otherwise
tried the brand, promotion can yield long-term increases in market share.
Sales promotions in market of high brand similarity can produce high sales responses in the
short run but little permanent gain in brand preference over the longer term. In market of high brand
similarity, they may be able to alter market share permanently. In addition to brand switching, consumers
may engagee in stockpiling –purchasing earlier than usual or purchasing extra quantities
Promotional Tools
Manufacture use a number of trade promotion tools as follows;
1. Price-off- A straight discount off the list price on each case purchased during a stated
time period.
2. Allowance- An amount offered in return for the retailer’s agreeing to feature the
manufacturer’s product in some way. Advertising allowances compensate retailers for
advertising the manufacturer’s product. A display allowance compensates them for carrying a
special product display.
3. Free Goods- Offer of extra cases of merchandise to intermediaries who buy a certain
quantity or who feature a certain flavor or size.
4. Trade Shows and convention- industry association organize annual trade and
conventions. Business marketers may spend as much as 35% of their promotion budget on trade
shows. Over 5,600 range from a new place every year, drawing approximately 80 million
attendees.
5. Sales Contest- A sales contest aims at including the sales force or dealers to increase
their sales results over a stated period, with prizes (money, trips, gifts, points) going to those who
succeed.
6. Specialty Advertising- Specialty advertising consists of useful, low-cost items bearing the
company’s name and address, and sometimes an advertising message that sales people give to prospects
and customers.
3 RESEARCH METHODOLOGY
The main objective of a research is to find out the truth which is hidden and
which has not been discovered. According to advance learner’s dictionary of
current English the definition of research is:- “A careful investigation or
enquiry especially through search for new facts in any branch of knowledge”
R - RATIONAL WAY OF THINKING
E -EXPERT AND EXHAUSTIVE TREATMENT
S -SEARCH FOR SOLUTION
E -EXACTNESS
A -ANALYTICAL
R -RELATIONSHIP OF FACTS
C -CAREFUL RECORDING
H -HONESTY AND HARDWORK
3.1 TITLE OF THE STUDY
MARKET WISE DEMAND ANALYSIS AND JK PRICE PERCEPTION
3.2 DURATION OF THE PROJECT STUDYMy project study duration is 45 days.
3.3 OBJECTIVE OF STUDY (i) To find out the brand performance of J.K. Cement in the market.
(ii) To find out the problems of dealers and retailers in the business with
this brand/company.
( iii) To find out the scope of expansion of business by providing more new
dealerships.
(iv) To compare the major cement brands in terms of Price, Preference, Quality, Packing and Colour.
(v)To compare the advertisement strategy of the various cement brands.
(vi) To know which attribute of cement consumer prefer more
(vii) By which medium consumer know about the cement and on whom they trust more in
selection of cement in there construction
3.5 TYPE OF RESEARCH
Research in common parlance refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific topic. In fact,
research is an act of scientific investigation. The advanced learner’s Dictionary of Current
English lays down the meaning of research as “a careful investigation or inquiry especially
through search for new facts in any branch of knowledge.” “A careful investigation or enquiry
especially through search for new facts in any branch of knowledge.”
It is an academic activity which contributes to the existing stock of knowledge, making for its
advancement. It comprises of: data collection, observation, comparison, interpretation and
findings. It refers to a systematic method of enunciating the problem.
Thus when we talk about research or research methodology we not only talk about research
method but also consider the logic behind it.
It is a plan of action to be carried out in connection with the research project. It is
the guideline for the researcher to enable him to keep track of his action and to know weather he
was moving in the right direction or not. It is the framework or plan for a study that is used as
guide in collecting and analyzing the data. It is the blue print that is followed in completing a
study. There are various types of research with its pros and cons. Each is meant for its specific
purpose. Hence here in this project, I used the descriptive type of research.
3.6 SCOPE OF THE STUDY
A big boom has been witnessed in Cement Industry in resent times. A large number
of new players have entered the market and trying to gain market share in this rapidly improving
market.
The research was carried on in Nimbahera. I had been sent at one of the branch ofJK
CEMENT where I completed my Project work. I surveyed on my Project Topic
“MANUFACTURING PROCESS & PRICE ANALYSIS OF VARIOUS CEMENT
BRANDS “on the visiting customers of the Nimbahera Branch of JK CEMENT.
ADOPTED RESEARCH METHODOLOGY AS FOLLOWS:-
Sample size Dealers- 6
Retailers – 14
Contractors – 10
Total – 30
Sampling units Chittorgarh
Sampling procedure Judgement sampling
Research design Exploratory
Data collection method Survey
Research instrument Questionnaire
Type of questionnaire Structured
Type of question Close and open ended
Area covered Dealers, Retailers and contractor .
3.7 LIMITATION OF THE STUDY
The research conduct was limited to chittorgarh region only.
Due to time constraints, more time could not be devoted to individual respondent.
Due to unwillingness of providing any information, the respondents filled the
questionnaire casually which might have effected the conclusion.
Marketing manager being busy with his job. He was not able to spare enough time for our
proper guidance.
A busy schedule of dealers / retailers also makes the collection of information a very
difficult one.
Full district was not covered as this is very tedious job to be done in 7 – days. However
almost all main areas of the district were covered.
The projections are purely based on verbal meetings and may be influenced by
unprecedented factors. was a big problem in this survey.
4.DATA ANALYSIS &INTERPRETATION
PRICE ANALYSIS AND DISCOUNT RATE
SALES PROMOTION AND ADVERTISMENT
MARKET SHARE
DATA INTERPRETATION
Q 1.PRICE ANALYSIS AND DISCOUNT RATE OF VARIOUS CEMENT BRANDS :-
COMPANY PRICE
WHOLE SALES
PRICE CASH DISCOUNT
J.K. 206 202 4
BIRLA 210 205 5
BINANI 203 200 3
BANGUR 202 200 2
According to Bar Daigram shows j.k.cement gives more cash discount to whole saler for more
bulk purchasing in compare to another industries.
Q 2.SALES PROMOTION AND ADVERTISMENT STATUS OF
VARIOUS CEMENT BRANDS IN CHITTORGARH REGION :-
This diagram shows the comparative study of advertisement ratio of various cement
industries. We can notice that the JK cement industry invest less money in advertisement as
compare to other cement industries.
SALES PROMOTION AVERSTISMENT
J.K. 36% 15%
BIRLA 80% 65%
BINANI 66% 60%
BANGUR 58% 52%
% STATUS
0-25 POOR
25-50 GOOD
50-75 VERY GOOD
75-100 EXCELLENT
Q 3.MARKET SHARE OF VARIOUS BRANDS IN CHITTORGARH
REGION :-
BRAND Sales
J.K. 30%
BIRLA 40%
BINANI 20%
BANGUR 7%
OTHERS 3%
According to pie chart sales ratio of jk cement in comparison of other brands in market is higher.
Q.4 WHAT IS THE TOTAL SCORE OF JK CEMENT IN INDIAN MARKET?
according to above shown pie-chart we can analyse that J.K. cement have 12% share in Indian
market.
Q.5 WHAT ARE THE PREFRENCES OF JK CEMENT IN CEMENT MARKET?
From above chart we have analysed that the JK cement have less preference
as compare to other cement industries.
Q 6.Cement consumption in the Indian market divided by region wise cement
consumption?
According to pie chart cement consumption in the all over Indian market is
very good and cement is consumed in all region in construction.
Q.7What are the cement industries uses to their production to despatch them
to their customers?
According to pie chart cement production despatch by road 62%,rail 36%
and by sea is less then others 2%.So the conclusion of the analysis despatch of
cement production road modes is perfereable in comparasion to others
modes.
Q 8. MAJOR CEMENT PRODUCING STATES IN INDIA
5. FINDINGS & FACTS
It can be concluded from the study through model JK Cement has a good brand image in
the dealers mind in chittorgarh. It is not easily available on demand which places the company at
the disadvantage which compared with lack vendors. This problem which can be improved by
the strength and the distribution network of JK Cement Works & Supply.
Dealers are of the opinion that among all the media television is the most powerful
media followed by the hoarding and wall painting which every common man can see. So
company should have to utilize then as much as possible.
I found company is poor in providing services such as timely small deliveries regular
visits and gift items etc.
The company should focus more on sales promotion, advertisement and public relation.
Network spread of JK Cement is very high in chittorgarh can be this as its strength.
If check out the satisfaction level of dealers with respect to quality of JK Cement then we
find that 85% dealers are told that it has excellent quality. So company can also see this as
its strength compare to other brand in market.
Dealers opinion regarding price is Favoring JK & It’s Get 1st rank in all six-brand. Its
price is reasonable according to quality it’s also satisfy the dealer. It was found company
has very good Brand Image in dealers mind.
Dealers are satisfy with the price.
It was found that company is lacking in Supply.
SWOT ANALYSIS
STRENGTHS :-1. J.K. CEMENT possess good brand image in the existing markets which is definitely a par of
pavement brick for it.
2.Locatin has always been and important factor in Rajasthan extensive (about 2500 mt) of
cement grade limestone available.
3.Sound financial position with adequate profits and capital assets base.
4.Good plant having 10000 tons per day production capacity
5.In the coming few years the demand for the cement will increase which will be booming news
for cement manufactures.
6Environment friendly and biodegradable characteristic are considered as best option.
WEAKNESSES 1. Low sales as compared to market potential. The market potential of the Udaipur market is
high but as compared to it the sales of J.K. Cement is low.
2.Lack of self – enthusiasm in the working pattern of the executives as a result the
aggressiveness towards sales is low.
3.High complaints of quality deterioration in J.K. super brand.
4.Less advertisement and negligible sales promotion schemes as compared to other brands.
5High capital cost and investment cost for each and every project.
6.The complex Excise Duty structure based on the category of buyer and end use of the
cement has caused at lot of confusion in the industry.
7. Monopoly of dealers is affecting the sales.
OPPORTUNITIES :-1.India is the second larges producer of cement after China but is per capita consumption is very
low i.e. around one third of world average and substantially lower as compared to per cpita
cement consumption of developing countries.
2.With demand expected to grow at around 8 – 9 %, additional capacity of 12 million tons per
annum will be required to match the damand. With limited green field capacity addition in
pipeline for next two years, country is heading towards more favourable demand – supply
scenario.
3.Explosion of quality yet to be displayd to capture large customers.
4.Competitive prices and may increase the discount and margin structure for retailers and dealers.
5 Adequate support from the Government is very essential to promote business activities.
6.Increase in the production and sell of cement at different plants have increased the turnover of
the company.
THREATS :-1.However, with the increased margins there is a possibility of over bunching of capacities in the
long term as some of the players have already announced new capacities and the pace of capacity
addition may be higher than demand growth.
2.There are many dealers of low profile may cause a loss product performance to grow and
prosper.
3.Price flucturatins and price war is general phenomena in the cement industry.
4.Increased railway freight, coal prices and dispatch bottlenecks on account of truck Loading
restrictions imposed by various State Governments
5.Scarcities of good quality Coal are some other factors which are cause of concern for the
industry.
.
SUGGESTION &RECOMENDATION
A company would be wise to measure customer satisfactions regularly the key to
customer retention is customer satisfaction.
Company can increase the role of the retailer by considering their suggestions or
complaints about service or product, so that necessary action can be taken.
Review meetings should be often held so that the working pattern of the
Executives can be checked and improved if needed.
Executives need to be more self-enthusiastic and aggressive towards sales for
these appraisals should be given to those executives who worked hard.
Company representatives should visit retailers and should make a long term
relationship with the retailer so that they can push the product.
Since customer are value maxi miser and their expectation to this brand is high, as
the brand image shows their complaints should be attended immediately to make then
remain brand loyal.
It should be checked that the non- trade consignment is not sold in the market, so
that is does not disturb the retail price of the market.
Since transportation forms the major part of the cement cost, market potential of
the region should be properly accessed so that emphasis can be more on high retention
zone, which can be done by employing more authorized retailers.
Stockiest should be convinced to pass the incentives to the retailers so that they are
motivated to promote this brand.
Company should increase the promotional and advertisement activities for giving the
popularity to the product.
Company should set the policy on pricing. There should be certain time period for
increment and decrement in the pricing. Company should also give the prior information
for this to dealers and retailers.
There should be proper loading facility in the plant and out side the plant, delivery of
goods should be on time.
Top management and executives should maintain proper communication with dealers and
retailers.
Increase the number of dealers and retailers as this will help in making high sales volume.
Cash discount should be competitive and luring.
C ONCLUSION
Cement is still a selling product in country like India. It is the company who has to find the
market and go the prospect rather then the client directly approaching to the company. The
opening up of the sector has also resulted in stiff competition as many private companies are
entering in. so it becomes very important to be the best out of the market . This , the company
can achieve by offering value added services to the customers by giving them maximum benefits.
Company is trying to given more assured returns to the investors. Mostly products are based on
the NAV or they unit Linked so awareness, knowledge and brand image of the will be product
the first priority for the company.
The most of the market of district chittorgarh is covered by JK Cement, Birla and
binanicement.
For increasing company good will and esteem many of the retailers suggests to Low
price and Availability of time.
Contractors and Masson are the most influencing factors during purchasing of cement.
The Wall painting and little bit hoarding is the effective media foe advertisement.
Most of the consumers are well known about JK Cement sarvasaktiman and super.
Customers are well satisfied by quality and services provided by T.C.S.
BIBLIOGRAPHY:
BOOKS
Marketing management Kotler Philip
Principles of marketing Kotler Philip
Business research method Cooper and Schindler
Marketing research Beri G .C.
Statistics Gupta S.C
Cement journal of CMA
NEWSPAPERS
Business Line .
Economic Times.
WEBSITES
www.google.com
www.jkcement.org.in
