Mapping of Construction Site in NCR

7/30/2019 Mapping of Construction Site in NCR

1/45

Mapping of Construction Sites In NCR

INTERNATIONAL SCHOOL OF BUSINESS AND MEDIA Page 1

ACC CONCRETE LIMITED

A report submitted in the partial fulfilment of therequirements of the PGDM program

Academic Year 2011-13

INTERNATIONAL SCHOOL OF BUSINESS AND MEDIA

By

Adarsh Joseph

12078

A REPORT

ON

MAPPING OF TOP RESIDENTIAL CUSTOMERS OF

U.P/EAST SOUTH DELHI


2/45



BY

ACC CONCRETE LIMITED

A report submitted in the partial fulfilment of the

requirements of the PGDM program

Submitted To :-

Mr. NAVNEET CHADDHA

TERRITORY SALES MANAGER

DELHI (NCR)

ACC CONCRETE Ltd.

SUBMITTED ON :- 9.6.2012

Submitted by :-

ADARSH JOSEPH

12078


3/45



ACKNOWLEDGEMENT

The beatitude, bliss and euphoria that accompany the successful completion of any task

would not be complete without the expression of appreciation of simple virtues to the

people who made it possible.

It is my great pleasure in taking this opportunity to express our sincere thanks

and deep sense of gratitude towards our honourable and respected Company guide Mr. Navneet

Chaddha (Territory Sales Manager) , who has given us valuable guidance constructive criticism,

kind advice and constant encouragement to learn important concepts of concrete industry and for

providing me this project work.

The final project report is submitted to International School of Business & Media for partial

fulfilment of Post Graduate Diploma in Business Management (PGDBM).

I would like to thank all my colleagues and also my batch mates whose encouragement and

ideas enriched my project.

ADARSH JOSEPH

12078


4/45



CERTIFICATE

Certified that this project report Mapping of Construction Site in NCR is the bonafide work of

Adarsh Joseph (12078) who carried out the project work under my supervision in partial fulfilment of

the requirements for the award of the masters in business administration in Marketing.

SIGNATURE

Mr.Navneet Chaddha

Area Teritory Sales Manager

ISB&M


5/45



TABLE OF CONTENTS

Chapter No. Subject Page No.

Ch. # 1.0 Executive Summary 6

Ch. # 2.0 Research Methodology 8

2.1 Primary Objective(s). 8

2.2 Hypothesis 8

2.3Research Design 9

2.4Sample Design.. 10

2.5Scope of the Study. 11

2.6Limitations. 12

Ch. # 3.0 Company Profile . 13

Holcim Profile.. 14

Advantage & Disadvantage RMC 18

Ch. # 4.0 RMX Business Process Flow................ 19

Concrete mix design 23

Coast of row material. 30

Transportation cost... 34

Ch. # 5.0 Swot Analysis . 38

Ch. # 6.0 Data finding Analysis 39

Ch. # 8.0 Parameter wise analysis ofcompetitors 41

Ch. # 9.0 Recommendation.......... 44

Ch #10.0 Bibliography............................................ 45


6/45



1-Executive Summary .

Concrete is one the most important raw material for the construction industry. Without concrete construction

industry cannot survive. Use of concrete started from the way back Roman Civilization. Previously concrete

was made at the site which was known as Site Mixed Concrete. This procedure is still very famous. But now

days it is not possible for construction companies to produce the concrete at the site because it takes a lot of

time.

Therefore they prefer to use Ready Mixed Concrete. Ready mixed concrete companies produces concrete at

their plant and transfer that concrete to the site ready to be used by the builder. One of the places in India

where construction is at boom is the Delhi/NCR region.This is the place where development goes on round the clock and that is why construction is at its peak.

Therefore the requirement of Ready mixed concrete is huge over here . In 2010 India got the permission to

host the Commonwealth games. For this reason construction was increased in fourfold way in the

Delhi/NCR region which was the host city for the Commonwealth games. For that Commonwealth games

new stadiums, competition venues, non-competition venues, Media center , training venues, roadways etc

were been build. Therefore requirement of concrete was increased tremendously. This gave an opportunity

for the RMC (Ready Mixed Concrete) companies to gain a huge profit. The RMC companies were changed

a handsome amount from the construction companies .This opportunity given RMC company enough time

to fix there roots in the NCR region. And the construction companies had no other option and therefore

gave what the RMC companies were charging because time for the construction to be completed was little.

Therefore at this situation Delhi/NCR region saw the sale of huge amount of concrete at a very high price.

But this situation changed after common-wealth. The requirement for concrete is gone down hugely. The

fall in the demand for Ready Mixed Concrete will be nearly 50000 cubic meters per month. That is why

after the construction boom for common-wealth people are calling Delhi/NCR market as a diminishing

market or in other words as shrinking market, because the requirement for concrete was reduced a lot.

In the diminishing market customers are not going to buy concrete if suppliers charge a huge amount of

money. Therefore prices have to be reduced. But reduction in price is not an easy task. Production of

concrete depends on many raw materials such as cement, sand, aggregates, admixture etc. Therefore price of

concrete depends heavily on the prices of these raw materials. And if we could see the trend analysis of the

prices of these raw materials we will notice that their prices have increased gradually. Therefore it becomes

a great challenge for a marketer to decide at what price they should sell their finished product i.e. concrete.


7/45



This is being reflected by the decreasing market share, and better profitability ratios It is appreciable that the

ACC Concrete is finally being noticed across RMC Sector maintaining its legacy in market constituents

without compromising in quality A particular assessment in RMC industry issues such as performance,

structural strength, along with the identification of real capabilities are almost mandatory to ensure that

equilibrium between price paid and value realized is reached to the maximum possible limit.Due to

increasing overwhelming competition in RMC, understanding the customer perception about the service

quality is becoming mandatory nowadays and understanding of customer perception is of prime importance

in RMC sector.

The ACC RMC are creating a cut throat competition to the NCR RMC competitors through their initiatives

in order to fulfil the customer expectation and thereby gaining a cutting edge advantage

This study compares various RMCs in the terms of customer perception of their sector.

With increasing competition among the RMCs , the need to gain competitive advantage have become

exceedingly imperative for their survival .From the customers perspective "the recent development(

upcoming of large multinational companies and increased innovations )have created a great deal of

indecisiveness in RMCs from each other in the terms of their quality of services .

This growing scenario makes it compulsory for the RMCs to identify customer perception of service quality,

which has a strong relation with customers behavioural intentions. This would facilitate the process the

process of categorizing determining and measuring, controlling and thereby improving the customer

perception in respect of service quality of concrete. This study is based on the mapping of Customers of

(Concrete s) in New Delhi /NCR region on the basis of there quantity of usage ,up coming projects etc,.

. Through this case study it has been analyzed that for the betterment of the backbone (constructors) in NCR

region .This transformation have been a great success both in terms of market share as well as profitability

for RMX Companies.


8/45



RESEARCH METHODOLOGY

2) Problem Definition:

The problem of thrust that is considered in this project is to find out the reasons why ACC Concrete is

mostly perceived same as other completers , most of the people think that ACC concrete and normally

manufactured concrete are one and the same thing in spite of being a separate concrete quality and service.

The other problem is to mapping out the construction sites who can be future customer and making the more

awareness of how ACC is different form others . The various RMC in market are loosing out their market

share to the high-end players. The additional problem that we need to analyze is as to which class of

constructors is to targeted and what kind of customer and what they should target.

2.1) Primary objective:

To give a snapshot of the Ready Mix Concrete in India

To understand the pricing policy adopted by ACC.

To know how ACC able to compete his competitors instead of having premium pricing.

To analyze the scope of RMC in NCR region : this will help in determining the scope and future of ACC

RMCs in NCR regional market.

Secondary objectives:

To conduct market feasibility for ACC concrete in NCR: this will help in determining the awareness of

ACC concrete as separate from the other competitors.

Research Question:

a) Why ACC is not able to be recognized as same ability of feasibility without compromising in quality?

b) What is the reason for declining market share in ACC concrete ?


9/45



2.2) Formulation of Hypothesis.

Ho [null hypothesis]: customer satisfaction and quality criteria is governed entirely by the services being

offered by the ACC concretes ,like various schemes and pricing schemes .customer satisfaction is directly

related to the profitability of the organization.

H1 [alternative hypothesis]: the above stated hypothesis has no relation with the profitability of the

organization.

2.3) Research Design

Descriptive studies are undertaken when the researcher is interested in knowing the characteristics of certain

groups such as constructors ,builders ,quantity they used , a descriptive study may be necessary in other

cases where a researcher is interested in knowing the proportion of the contractors in a given area who have

behaved in a particular manner, making projections of a certain thing, or more variables. The objective of

such a study is to answer the who, what, when, where,and how of the subject under investigation.

Methodology

Sources of data

The data has been collected in two ways.

Primary data

Secondary data

Primary data: -

Primary data are those, which are collected for the first time, and they are original in character. I havecollected these from the respondents in order to study a particular problem.


10/45



Secondary data: -

The secondary data are those, which are already collected by someone for some purpose and areavailable for the present study. These data have been collected from internet, library, books, etc.

2.4) Sample Design

Sample plan: -

Sample universe: -

The sample universe is that of relevant for this project includes some of the customers from different

concrete providers in Delhi /NCR.

Sample Site: -

Delhi/NCR was selected for research project and filling up of the questionnaire from the different customers

for the purpose of competitive analysis of loan providers.

Sample Size: -

Sample Respondent size

ACC Concrete 5

Ultra tech 10

Lafarge Ltd, 20

Others 55


11/45



Tools of data collection

Questionnaire method:

Questionnaire is used as tools to get the information from the sample. The questionnaire contains 11questions and the samples were approached individually and responses were recorded in

questionnaire form.

Observation method: -

For this study the observation method was also used to know the awareness of ACC concrete which

have been misinterpreted as same as most of the competitors.

2.5) Scope of the study

1) To find out the reason for which ACC concrete is considered to be same as others.

2) To find out the reason for which the revenues were dropped in the last financial year.

3) To find out the overall customers and ACC concrete ranking in Delhi /NCR region.

2.6)Limitations:

Reliability of the Information

The major draw back of the study is reliability of the information. The information may be vague or

misleading. This is due to unwillingness of the respondent and dislike for the publish ment of the

confidential data.

Survey Tool

To generate information the survey tool used for the study is the survey questionnaire. The limitation of the

questionnaire is to limited to the number of question(11).


12/45



5-Company profile :-

ACC (ACC Limited) is India's foremost manufacturer of cement and concrete. ACC's operations are spread

throughout the country with 16 modern cement factories, more than 40 Ready mix concrete plants, 20 sales

offices, and several zonal offices. It has a workforce of about 9,000 persons and a countrywide distribution

network of over 9,000 dealers.

Since inception in 1936, the company has been a trendsetter and important benchmark for the cement

industry in many areas of cement and concrete technology. ACC has a unique track record of innovative

research, product development and specialized consultancy services. The company's various manufacturing

units are backed by a central technology support services centre - the only one of its kind in the Indian

cement industry.

ACC has rich experience in mining, being the largest user of limestone. As the largest cement producer in

India, it is one of the biggest customers of the domestic coal industry, of Indian Railways, and a

considerable user of the countrys road transport network services for inward and outward movement of

materials and products.

Among the first companies in India to include commitment to environmental protection as one of its

corporate objectives, the company installed sophisticated pollution control equipment as far back as 1966,

long before pollution control laws came into existence.

Today each of its cement plants has state-of-the art pollution control equipment and devices.

ACC plants, mines and townships visibly demonstrate successful endeavours in quarry rehabilitation, water

management techniques and greening activities. The company actively promotes the use of alternative

fuels and raw materials and offers total solutions for waste management including testing, suggestions for

reuse, recycling and co-processing. ACC has taken purposeful steps in knowledge building. We run two

institutes that offer professional technical courses for engineering graduates and diploma holders which are

relevant to manufacturing sectors such as cement. The main beneficiaries are youth from remote andbackward areas of the country. ACC has made significant contributions to the nation building process by

way of quality products, services and sharing expertise. Its commitment to sustainable development, its

high ethical standards in business dealings and its on-going efforts in community welfare program have won

it acclaim as a responsible corporate citizen. ACCs brand name is synonymous with cement and enjoys a

high level of equity in the Indian market. It is the only cement company that figures in the list of Consumer

Super Brands of India.


13/45



ACC vision

To be one of the most respected company of INDIA recognized for challenging conventions

and delivering on our promise.

ACC MISSION

Leadership- Maintain our leadership of the Indian cement industry through the continuous

modernization and expansion of our manufacturing facilities and activities, and through the

establishment of a wide and efficient marketing network.

Profitability-Achieve a fair and reasonable return on capital by promoting productivity

throughout the company.

Growth- Ensure a steady growth of business by strengthening our position in the cement

sector.

Quality-Maintain the high quality of our products and services and ensure their supply at

fair prices.

Equity-Promote and maintain fair industrial relations and an environment for the effective

involvement, welfare and development of staff at all levels.

Pioneering- Promote research and development efforts in the areas of product development

and energy, and fuel conservation, and to innovate and optimize productivity.

Responsibility-Fulfill our obligations to society, specifically in the areas of integrated rural

development and in safeguarding the environment and natural ecological balance.


14/45



6-HolcimA New Partnership:

A new association was forged between ACC and The Holcim group of Switzerland in 2005. In January

2005, Holcim announced its plans to querying a majority stake in Ambuja Cements India Ltd. (ACIL),which

at the time held 13.8% of total equity shares in ACC.

Holcim simultaneously announced its bid to make an open offer to ACC shareholders, through Holcim

Cement Pvt. Ltd. and ACIL, to acquire a majority shareholding in ACC. An open offer was made by Holcim

Cement Pvt. Ltd. along with ACIL, following which the shareholding of ACIL increased to 34.69% of

Equity share capital of ACC. Consequently , ACIL has filed declarations indicating their shareholding and

declaring itself as a promoter of ACC. Holcim is the world leader in cement as well as being large supplier

of concrete, aggregates and certain construction related services. Holcim is also a respected name in

information technology and research and development. The group has its headquarters in Switzerland with

worldwide operations spread across more than 70 countries. Considering the

formidable global presence of Holcim and its excellent reputation, the broad of ACC has welcomed this

new associates.

Redefining the pace and quality of construction

ACC set up India's first commercial Ready Mix Concrete (RMX) plant in Mumbai in 1994. Today this

business has been reorganized as a separate company called ACC Concrete Limited which is one of the

largest manufacturers of RMX in India with over 40 modern plants in major cities such as Mumbai,

Bangalore, Kolkata, Chennai, Delhi. Hyderabad, Goa, Pune and Ahmadabad. ACC's pioneering efforts in

introducing RMX coupled with the promotion of bulk cement handling facilities have been responsible for

redefining the pace and quality of construction activity in metropolitan cities and in mega infrastructure

projects. Numerous landmark structures in India's metro cities have been built using ACC Concrete -

mega housing projects, townships, commercial complexes, factories, bridges, flyovers, roads and railways.

Prestige projects such as the Mumbai-Pune Expressway, the Indore- Dewas bypass, Kolkata and Delhi

Metro Rail projects. Most of the new bridge and fly-overs in Mumbai used ACC Concrete and couldperhaps not have been completed on schedule without it.


15/45



Small building projects and individual home builders seeking high levels of quality assurance can

also now usher in the same sophistication and value addition into their construction as some of India's mega

projects using ACC RMX- at virtually no extra cost.

7-What is Ready Mixed Concrete

Ready Mixed Concrete, or RMX as it is popularly called, refers to concrete that is specifically manufactured

for delivery to the customer's construction site in a freshly mixed and plastic or unhardened state. Concrete

itself is a mixture of Portland Cement, water and aggregates comprising sand and gravel or crushed stone. In

traditional work sites, each of these materials is procured separately and mixed in specified proportions at

site to make concrete. Ready Mixed Concrete is bought and sold by volume - usually expressed in cubic

meters. RMX can be custom-made to suit different applications.

RMX- Adding value to concrete

Ready Mixed Concrete is manufactured under computer-controlled operations and transported and placed at

site using sophisticated equipment and methods. RMX assures its customers numerous benefits:

ured quality of concrete

supervision of labour

The use of RMX is an environmental friendly practice that ensures a cleaner work place and

causes minimal disturbance to its surroundings. This makes its utility more significant in

crowded cities and sensitive localities.In contrast to this, conventional methods of making, transporting and placing concrete at

most construction sites are somewhat labour-intensive and suffer from practices which may

be erratic and not very systematic.

Therefore the use of Ready Mixed Concrete can prove to more cost effective in the longer

term while ensuring that structures are built faster and using concrete that comes with

higher levels of quality assurance.


16/45



Quality - the 'Q' factor in ACC Concrete

ACC Concrete is supplied in a variety of grades and compositions to meet specific demands of customized

applications - from simple requirements for small homes to High Performance Concrete to meet the complex

needs of mega projects. Each of our plants has a fully equipped laboratory with the latest in testing machines

to carry out routine and detailed tests of raw materials as well as fresh finished concrete. These in-plant

laboratories are backed by the facilities of ACC's reputed Research centre at Thane which serves as a focal

research and testing laboratory centre for cement and concrete. ACC Concrete customers can avail of a

range of options in our testing and quality control services - from simple tests and analyses of raw materials

and concrete to non-destructive testing of hardened concrete.

ACC Concrete- a wide range

-levelling Concrete

-compacting Concrete

e

Customer service-dependable

ACC's fleet of Transit Mixers and Concrete Pumps helps ensure that our customers in cities

like Mumbai, Bangalore, Kolkata, Delhi, Chennai, Hyderabad, Goa and Pune now just a

phone call away from ACC Concrete - freshly blended premium quality concrete that is door delivered

and efficiently placed at site on the day of concreting .For very large constructions or infrastructure works,we can consider dedicating an entire RMX plant catering exclusively to the project sites. In addition, our

marketing team, which includes qualified and experienced engineers and concrete technologists, can assist

customers in defining and specifying quality standards, designing specific concrete mixes to meet the most

challenging of requirements as well as sourcing reliable supplies of good quality raw materials.


17/45




18/45



8-Advantages & Disadvantages of RMC:

Advantages of RMC:

site.

use, and yet the delivery

trucks can service residential districts or inner cities.

ng of natural

resources.

and therefore, pollution-free

aggregates and water as per mix designs

Disadvantages of RMC:

so the travelling time from the plant to the site is critical over longer distances.

Some sites are just too far away.

ave to be able to carry the weight of the truck andload. Concrete is approx. 2.5tonne per cum.


19/45



RMX Business Process Flow

Delivery order, InvoiceCartage payment

Demand Graph

Display

Demand Graph

Display

Create/Change

Sales Order

Order

Confirmed?Assign Truck

Generate Excise

Invoice &

Consignment note

Truck Tracking

Order Taker Dispatcher

1st time

ordering

Credit Controller

Credit

pass?

Release

Credit?

Released sales

order

Yes

No

Inform

Sales person

Sales Admin.Sales Person

Sales document

Plant Staff

Load

concrete

Proof of

Delivery

2nd timeordering

Customer

No

Yes

Yes

Truck log off

Truck log on

Actual weight interface

C

omputerBatch

interface

Existingcustomer/ship-to

Yes

Cost/Profit

determination and

create quotation

Create contract

(if applicable)

Create item

proposal

(product list)

Create map

information

Ship-to Discount

approval

Map Interface

No

Create customer

master (if need)

Create ship-to

master (if need)

Create price

master (if need)

Stock issue

No

Print Ticket

VSC interface

Confirmed Orders


20/45



Cement

Portland cement is the most common type of cement in general usage. It is a basic ingredient of concrete,

mortar, and plaster. English asonry worker Joseph Aspdin patented Portland cement in 1824; it was named

because of its similarity in colour to Portland limestone, quarried from the English Isle of Portland and used

extensively in London architecture. It consists of a mixture of oxides of calcium, silicon and aluminium.

Portland cement and similar materials are made by heating limestone (a source of calcium) with clay, and

grinding this product (called clinker) with a source of sulfate (most commonly gypsum).

Water:

Combining water with a cementitious material forms a cement paste by the process of hydration. The

cement paste glues the aggregate together, fills voids within it, and allows it to flow more freely. Less water

in the cement paste will yield a stronger, more durable concrete; more water will give an freer-flowing

concrete with a higher slump Impure water used to make concrete can cause problems when setting or in

causing premature failure of the structure.

Hydration involves many different reactions, often occurring at the same time. As the reactions proceed, the

products of the cement hydration process gradually bond together the individual sand and gravel particles,

and other components of the concrete, to form a solid mass.

Aggregates:

Fine and coarse aggregates make up the bulk of a concrete mixture. Sand, natural gravel and crushed stone

are mainly used for this purpose. Recycled aggregates (from construction, demolition and excavation waste)

are increasingly used as partial replacements of natural aggregates, while a number of manufactured

aggregates, including air-cooled blast furnace slag and bottom ash are also permitted.

Decorative stones such as quartzite, small river stones or crushed glass are sometimes added

to the surface of concrete for a decorative "exposed aggregate" finish, popular among

landscape designers.


21/45



10 mm

SAND


22/45



Admixtures :

Admixtures are ingredients other than water, aggregates, hydraulic cement, and fibres that are added to the

concrete batch immediately before or during mixing. A proper use of admixtures offers certain beneficial

effects to concrete, including improved quality, acceleration or retardation of setting time, enhanced frost

and sulphate resistance, control of strength development, improved workability, and enhanced finish ability.

It is estimated that 80% of concrete produced in North America these days contains one or more types of

admixtures. According to a survey by the National Ready Mix Concrete Association, 39% of all ready-

mixed concrete producers use fly ash, and at least 70% of produced concrete contains a water-reducer

admixture.

Admixtures vary widely in chemical composition, and many perform more than one function. Two basic

types of admixtures are available: chemical and mineral. All admixtures to be used in concrete construction

should meet specifications; tests should be made to evaluate how the admixture will affect the properties of

the concrete to be made with the specified job materials, under the anticipated ambient conditions, and by

the anticipated construction procedures.


23/45



Concrete Mix Design :

Mix design is the process of selecting suitable ingredients of concrete and determining their relative

proportions with the object of producing concrete of certain minimum strength and durability as

economically as possible. The purpose of designing as can be seen from the above definitions is two-fold.

The first object is to achieve the stipulated minimum strength and durability. The second object is to make

the concrete in the most economical manner. Cost wise all concretes depend primarily on two factors;

namely cost of material and labour. Labour cost, by way of formworks, batching, mix in transporting, and

curing is nearly for same good concrete and bad concrete. Therefore attention is mainly directed to

the cost of materials. Since the cost of cement is many times more than ingredients, attention is mainly

directed to the use of as little cement as possible consistent with strength and durability.


24/45



Optimized mix design for OPC-43 with Fly ash & pump

(ACC Concrete ltd)

GRADE

CEMENT

(Kg)

FLY ASH

(kg)

WATER

(lt)

20 MM

(kg)

10 MM

(kg)

SAND

(kg) ADMIXTURE

M05 70 160 200 590 405 830 1-1.2%

M7.5 107 190 190 590 395 810 1-1.2%

M10 125 165 190 610 415 785 1-1.2%

M15 200 130 180 667 451 722 1-1.2%

M20 240 120 175 650 455 700 1-1.2%

M25 270 110 175 650 455 690 1-1.2%

M30 320 85 175 665 467 650 1-1.2%

M35 370 100 178 645 440 630 1-1.2%M40 420 100 175 635 435 610 1-1.2%

M45 445 90 170 641 444 600 1-1.2%

M50 470 90 170 640 435 590 1-1.2%

Optimized mix design for OPC-43 with Fly ash & pump

(ACC Concrete ltd)

GRADECEMENT

(KG) WATER(LT) 20MM(KG) 10MM(KG) SAND(kg) ADMIXTURE

M15 260 180 634 422 864 2.912

M20 320 185 634 423 798 3.584

M25 340 183 660 433 767 3.808

M30 400 180 637 425 738 4.48

M35 425 175 639 425 738 4.76

M40 455 170 639 426 710 5.096

M45 470 165 639 426 710 5.264

M50 500 165 662 441 648 5.6


25/45



SEMI-MOBILE COMPACT BATCHING PLANT


26/45



From Concrete Production Plant


27/45



Product Flow .. Truck Loading


28/45



10-RMC PRODUCT MIX AND

:RMC companies produce almost all grades of concrete, starting from M 7.5 to M 50. The most

commonly produced grades are M 20, M 25 and M 30. These grades constitute around 70 - 80 % of theirproduct mix. The grade wise product mix is shown below in the picture.

RMC suppliers are of 2 categories, viz., reputed and local. Players like ACC, Birla Ready Mix,

RMC India, Lafarge, Ultratech etc fall under the "reputed supplier" category; whereas, other RMC

players fall under the "local supplier" category. Prices of "reputed suppliers" are seen to be higher than

that of "local suppliers". The current grade-wise average RMC prices are given in the Table below:


29/45



Note: Prices are in Rs/ cu m and without tax, but including pumping and average transportation

costs.

Average RMC Prices

Prices of RMC suppliers in NOIDA and Faridabad are higher than that of similar RMC suppliers in

Gurgaon. This is due to greater concentration of RMC players in Gurgaon. The "local RMC suppliers"

tend to have lower prices as they have lower overheads and often produce poor quality of concrete.

Some of the "local RMC suppliers" evade taxes, allowing them to further drop their prices.

Cost involved in RMC for ACC:

There are many cost involved in production of Ready Mixed Concrete. They are as follows:

1) Cost of the raw materials (Cement, Aggregate, Admixture, and, Fly ash)

2) Production Cost

3) Administrative cost

4) Transportation cost

5) Pumping cost


30/45



Cost of raw material:

The costs of the raw materials which are being discussed below are of Month of May 2010.

1) Aggregate 10mmRs 590/ton [1 ton=1000kg]

2) Aggregate 20mRs 590/ton

3) River Sand RMX (coarse sand)Rs 630/ton

4) Fine SandRs 280/ton

5) Fly AshRs 700/ton

6) AdmixtureRs 29.94/kg

7) Cement OPCRs 4069/ton

8) Cement PPCRs 3549/ton

Production Cost and Administrative Cost:

ACC takes into account Production cost and Administrative cost together. The costs that are

involved are as follows:

1) Diesel/Gasoline cost (variable)

2) Electrical Energy (variable)

3) Wages

4) Salaries

5) Incentives/bonus

6) House rent allowance

7) Other allowances

8) Leave encashment

9) Medical Encashment

10) Labor expense own

11) Labor expense subcontract


31/45



12) Meals

13) Local conveyance charge

14) Safety material

15) Other personnel expense

16) Rentals and other operating leases

17) Lease Rent

18) Security expenses

19) Other third party services

20) Repair and maintenance

21) IT equipment

22) IT network

23) Cleaning services

24) Spare parts (Mechanical, Electrical)

25) Lubricant

26) Insurances

27) Telephone/Mobile

28) Postage and courier

29) Other cost center expenses

30) Depreciation/Amortization

These are the costs involved in production and administration. If we calculate all these

expenses and divide by the monthly average production then the cost comes to be Rs

350/cubic meter approximately.


32/45



Pumping Cost (Line pump):

Safety equipment= (((16-4)*3500)/12) =3500

They are giving 12 number of safety equipments.


33/45



Let the:

Average productivity = 2000 cubic meter

Average fuel consumption=0.5litre/cu m

Diesel= Rs 33.56/litre

Therefore fuel cost for pump = 2000*.5*33.56 =33560

Therefore fuel cost for cab= 2000/7*33.56 = 9589

Therefore Variable cost per cubic meter = 95719/2000= 47.9

Therefore Total cost= 223097/2000+47.9= 159.44 =Rs 159/cu m (approx)


34/45



Transportation Cost:

The transportation cost includes two things one is a fixed cost and the other is variable.

Fixed Fee = Rs 80,000/month

Minimum volume that is transported by one Transit Mixer = 650 cu.m

Variable Fee rate = Rs 7.11 /cu.m/km

Specific Volume6.8 cu.m/trip (one transit mixer can carry 6.8 cu.m per trip)

Now suppose

Number of trips = 100

Average distance = 21 km

Total Distance = 2100 km

Therefore

Variable Cost = 2100*6.8*7.11

= 101530.8

Variable cost per cu.m = 101530.8/650 = 156.2

Fixed cost per cu.m = 80000/650 = 123.07

Total cost per cu.m = 156.2 + 123.07 = 279.27

Other cost = Rs 50 (it includes toll tax, road tax, insurance, maintenance etc)

Grand Total = 279.27+50 = Rs 329.278/cu.m

Pricing of Concrete by ACC:

M20 and M25 are the quite popular among the customers. Therefore the pricing process of

one of these two concrete are shown below


35/45



M20 with fly ash-pump:

Mix Design of M20 with fly ash-pump-

Let the price of:

Cement = Rs 4.4/kg

Fly ash = Rs 0.7/kg

20 mm = Rs 0.57/kg

10 mm = Rs 0.57/kg

Sand = Rs 0.47/kg

Admixture = Rs 28.5/kg

Therefore

Ready Mix Cost = 240*4.4 + 120*0.7 + 175*0 + 650*0.57 + 455*0.57+ 700*0.47 +

2.688*28.5

= 2175.458

Overhead cost = 350

Transportation cost (fixed) = Rs 150

Transportation cost (variable) = Rs 7/km

Pumping cost = Rs 175/cu.m

Suppose the distance travelled is = 20km

Therefore cost = 2175.458+350+150+7*20+175

= 2990.458

This is the base price. Now in this base price profit is added and tax is also added and that

becomes the final price that is to be paid by the customers.


36/45



RMC product mix and its price:

RMC companies produce almost all grades of concrete, starting from M 7.5 to M 50. The most commonly

produced grades are M 20, M 25 and M 30. These grades constitute around 70 - 80 % of their product mix.

RMC suppliers are of 2 categories, viz., reputed and local. Players like ACC, Birla Ready Mix,

RMC India, etc fall under the "reputed supplier" category; whereas, other RMC players fall under the

"local supplier" category. Prices of "reputed suppliers" are seen to be higher than that of "local suppliers"

due to many reasons such asthe reputed players are much bigger organization, they have much more

employees than the local players, they are much more organized, and they use modern age technologies and

equipment.

The current grade wise average RMC prices are given below:

Note: Prices are in Rs/ cu m and without tax, but including pumping and average

transportation costs.


37/45



11-RMX Office:

Mumbai- Kalamboli

Mumbai- Sion

Mumbai- JVLR Project

Chennai

Delhi- Faridabad

Greater Noida

Bangalore- Whitefield

Bangalore- Peenya

Bangalore- Hosur Road

Bangalore- betta Halsoor

Kolkata- Sonapur

Goa- Panaji

Gurgaon- Haryana


38/45



SWOT ANALYSIS OF Concrete (Industry)

STRENGTH

High on service aspect

Strong last mile approach

Focus on recovery

Easy & fast appraisal and disbursement

Able to generate higher yield on asset

Own employees versus DSAs

WEAKNESS

Weak in urban market

Weak in credit history

Largely restricted to South India &

metropolitan

Weaker system of service delivery

Higher regulatory restrictions

OPPORTUNITIES

Large untapped market both rural and

urban

Demographic changes

up coming new projects by big

builders.

THREATS

High cost of funds

Asset quality deterioration may not

only wipe out profit but also network

Entry of foreign players in recent

future.


39/45



Data Findings & Analysis

The data collected from the primary survey helped me to learn about the demographics of the market and the

way customers responded to various RMCs companies.

MARKET DISTRIBUTION BY QUALITY WISE CONSUMPTION

The survey of 150 construction sites was done across various area to remove biasness of any particularcompany group. A major chunk of the sample size ranged from 30-50, which together formed a majority of

63% of the respondent company.

But the age distribution showed interesting results when the comp. group was divided based on the interest

of the respondent to take on company quality.

GRAPH SHOWING COMPANY GROUP DISTRIBUTION AMONG PEOPLE

INTERESTED TO TAKE RMC FROM ACC CONCRETE.

Distribution

20-40

40-50

50-60

>60

29%

46%

21%

4%

20 - 30

30 - 40

40 - 50

> 50


40/45



A similar graph was drawn to see the company group distribution of people who have already taken RMC

services from different sources. The results were as follows.

Of the 100 respondents who had previously taken RMC, 44 or about 44% company belonged to the small

construction companies just re-enforcing the fact mentioned above.

PIE CHART SHOWING THE COMPANY GROUP AND NUMBER OF RESPONDENTS OF

COMPANY ALREADY TAKEN RMCs

INCOME DISTRIBUTION

The survey revealed the demographics of the respondents in terms of their annual construction sites. While

the survey was being conducted, it was done in an unbiased way so as to remove disparity among various

construction groups. The survey was conducted in a purely random basis to avoid such kind of discrepancy

in the data.

The demographics of the income group of the respondents of the survey, as per the data collected are as

follows in the pie-chart.

Graph showing the construction distribution of respondents of the survey

The same graph when plotted for people already taken RMC of some other RMC companies or sources

doesnt change much.

Sales

20-40

40-50

50-60

>60

12%

46%29%

13%


41/45



PARAMETER WISE ANALISIS OF COMPITITORS

1. CUSTOMER GUIDANCE/SUPPORT EXCELLENT (1)

VERYGOOD (2)

GOOD (3)

AVERAGE (4)

BELOW AVERAGE (5)

With regard to customer guidance and support, ACC concrete is perceived to be better. This is evident

from the fact that the mean scores Lafarge concrete is 2.92 and that of ACC is 3.533 ,whereas mean score of

Ultatech is 3.033.And as per the rating scale it is evident and clear that ACC Concrete is perceived muchbetter as compared with both Lafarge and Ultratech respectively as ACC Concrete scores second least in this

which is nearly more than good followed by Ultratech which has been rated as good followed by Lafarge for

which most of the customers rate it as average when it comes to customer guidance and support.

00.5

11.5

22.5

33.5

4

mean standard

deviation

variance

Lafarge

ACC

Ultratech


42/45



2. HANDLING OF CUSTOMER GRIEVANCES/COMPLAINTS

EXCELLENT (1)

VERYGOOD (2)

GOOD (3)

AVERAGE (4)

BELOW AVERAGE (5)

Ultratech is perceived to be much better than the ACC & Lafarge when it comes to handling of customer

grievances, which has been highlighted by their respective mean scores. The mean score of Ultratech is

3.23 whereas that of ACC & Lafarge is 2.22 & 2.16 respectively which is highly significant.

3. GOODWILL & REPUTATION OF THE COMPANYEXCELLENT (1)

VERYGOOD (2)

GOOD (3)

AVERAGE (4)

BELOW AVERAGE (5)

The Lafarge scores over the ACC & Ultratech .The mean score of 1.43 (for Lafarge) and 1.92 & 2.03 (for

ACC & Ultratech respectively), reveal that the goodwill and reputation of Lafarge as perceived by their

customers is slightly better when compared to the others .

0

0.5

1

1.5

2

2.5

3

3.5

mean standard

deviation

variance

Lafarge

ACC

Ultratech

0

0.5

1

1.5

2

2.5

mean standard

deviation

variance

ACC

Utratech

Lafarge


43/45



4. CONVINIENCE IN INTERACTION WITH OFFICE STAFF

EXCELLENT (1)

VERYGOOD (2)

GOOD (3)

AVERAGE (4)

BELOW AVERAGE (5)

Regarding this parameter Lafarge has an danger over others, which is reflected by the mean scores of 3.56

(for Lsfsrge) and 2.16 (for others) which is significant. This shows that both ACC as well as Ultratech are

perceived to be on the same stage and has been rated as very good by their respective customers but when it

comes to Lafarge customers are not at all convenient with officials when it comes to the ability or ease when

interacting with office staff lafarge staff are not able to make customers feel comfortable while interacting

with them.

0

0.5

1

1.5

2

2.5

3

3.5

4

mean standard

deviation

variance

ACC

Ultratech

Lafarge


44/45



Recommendation

1. ACC should launch more to attract customers.

2. ACC also lacks in customer interaction it should take feed back from customers and try to

improve their services.

3. In order to diversify in the rural sector the business line the ACC concrete should invest more

and more in rural area development project.

4. ACC concrete should rethink about pricing strategy of there products.

5. It will decrease the amount of delinquency that has been the major cause losses citi has

encountered recently in 2006-07 financial year.

6. It can also use the latest technology that is mobile technology to tap the customers

7. It should move to rural parts of the country for their operation.


45/45


Bibliography

1. www.acclimited.com

2. www.accconcrete.com

3. www.wikipedia.org

4. www.readymix.co.il

5. www.indianconstructionindustry.com

6. www.rmcmaindia.org

7. www.concreteproducts.com

8.Business Research Methods (BY Donald R Cooper& Pamela S Schinder) Chapter 1:Page22-23.

9. Business Research Methods (BY Donald R Cooper& Pamela S Schinder) Chapter 2: Page 40-4510. Business Research Methods (BY Donald R Cooper& Pamela S Schinder) Chapter 3:Page72-77

11. Business Research Methods (BY Donald R Cooper& Pamela S Schinder) Chapter 4:Page96-98.

12. Business Research Methods (BY Donald R Cooper& Pamela S Schinder) Chapter 6:Page140-144

13. Business Research Methods (BY Donald R Cooper& Pamela S Schinder) Chapter 15, 16, 17.

14. Research Methods (BY Ram Abuja) Chapter 1: Pages 70-74

15. Research Methods (BY Ram Abuja) Chapter 3: Pages 120-127.

16. Research Methods (BY Ram Abuja) Chapter 4: Pages 155 -165.

17. Research Methods (BY Ram Abuja) Chapter 6: Pages 193 -19

Documents

Mapping of Construction Site in NCR