An

Industrial Report

On

Marketing of

UltraTech Cement Ltd.

Submitted in partial fulfillment for Semester 4 Bachelor of Business Administration Industrial Exposure

Submitted By –

Name: Niraj S Pahwa

Class: SY BBA – B

Roll No: 119

Submitted To –

Gujarat Law Society Institute of Business Administration

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Preface

Being a B.B.A. student industrial visit is an essential part of our course. The basic purpose of industrial visit is to complete the gap between theoretical knowledge and the practical knowledge.

The practical training helps us to know the Industrial environment and develop practical knowledge in us. It gives us chance how to interact with Persons in business units. We can know about the Structure of industries, its growth etc.

We visited the industry and experienced various things. We got knowledge about the managerial chain between Top levels to Bottom level. We saw different departments like Production department, Human resource department and marketing department to learn practically.

It is indeed a Golden opportunity for every Student of management to take the knowledge and Information about the industries through this visit.

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ACKNOWLEDGEMENT

I would like to express my deep gratitude to all

those who, directly or indirectly made this project possible.

I have got considerable help and support in making

this project report a reality from many people.

Firstly I would like to thank Gujarat Law Society

Institute of Business Administration for giving me the

opportunity to do this work. I would also like to convey my

special thanks to my project guide Prof. Vineeta Gangal,

whose endeavour for perfection, innovation and dynamism

contributed in a big way in completing this project. This work is

the reflection of her thought, ideas, concept and above all her

efforts.

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Table of Content

Topic Page No.

Basic Information (Company Profile, Introduction to Company, Brief History, Mission,

Vision, Values, Management Teams, Awards & Achievements)

5-12

Finance(Balance Sheet, P & L Account and

Capital Structure)

13-15

Corporate Social Responsibility 16-20

SWOT Analysis 21-23

Production Details(Products, Production Process and

Production Plants in India)

24-28

Human Resource Department(Introduction to HR and HR Functions)

29-30

Marketing Department(Introduction of Marketing, Marketing

Orientation)

31-33

Marketing Mix(4 P’s of Marketing – Product, Price,

Place and Promotion)

34-45

Segmentation, Targeting & Positioning 46-50

Marketing Research at UltratechResearch and Development

51-52

Strategies adopted by Utratech and Opinion towards Marketing

53

Conclusion and Bibliography 54

4

Basic Information

Company Profile

Name of the Company – Gujarat Cement Works

P.O Kovaya Taluka : Rajula District : Amreli Gujarat – 365541 Tel : (02794) 283034 Fax : (02794) 283036

Registration Add - Mumbai

A' Wing 3rd Floor, Ahura Centre, Mahakali Caves Road, Near MIDC Office, Andheri (E) Mumbai - 400093 Ph : 022-66917274. Fax : 66917250

Form of Organization - Public Limited Company

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Introduction

UltraTech Cement, India's largest and the world's 10th largest manufacturer of cement, one of India's largest producers of RMC and the nations's largest producer of white cement has been instrumental in India’s rapid infrastructural growth. Its state-of-the-art manufacturing facilities produce products and services that have aided growth not only in urban areas but also in the rural interiors of the country. UltraTech as a brand is an embodiment of ‘strength’ and ‘reliability’. These traits have inspired engineers to further use their imagination, which has resulted in a more extensive realm of possibilities.

UltraTech Cement is part of the US $40 billion Aditya Birla Group. The company has 22 cement plants in India with an installed capacity of 48.75 Million Tonnes Per Annum (MTPA) with an expected increase of 10 MTPA by FY 13.

UltraTech Cement provides a range of products that cater to all the needs from laying the foundation to delivering the final touches. The range includes Ordinary Portland Cement, Portland Blast Furnace Slag Cement, Portland Pozzalana Cement, White Cement, Ready Mix Concrete, building products and a host of other building solutions. White cement is manufactured under the brand name of ‘Birla White’ , ready mix concretes under the name of ‘UltraTech Concrete’ and new age building products under the name of ‘UltraTech Building Products Division’. The retail outlets of UltraTech operate under the name of ‘UltraTech Building Solutions’.

UltraTech’s parent company, the Aditya Birla Group, is in the league of Fortune 500 companies. It employs a diverse workforce comprising of 1,33,000 employees, belonging to 42 different nationalities across 36 countries. A recent survey conducted by Aon-Hewitt ranked the Aditya Birla Group as one among the ‘Best Employers’ in India. Another survey conducted by Aon-Hewitt, Fortune magazine and RBL ranked the group as No. 4 in the world and No.1 in Asia Pacific among the ‘Top Companies for Leaders’ (2011).

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Brief History

Milestone

1983 -Awarpur Cement Works Plant I 1987 Awarpur Cement Works Plant II 1993 -Jharsuguda grinding unit 1994 -Hirmi Cement Works 1996 -Gujarat Cement Works Plant I 1998 -Andhra Pradesh Cement Works -Gujarat Cement Works Plant II 1999 -Narmada Cement Company Limited acquired -Ratnagiri Cement Works 2000 Bulk cement terminals at Mangalore, Navi Mumbai and Colombo

2001 -Grasim acquires 10 per cent stake in L&T. Subsequently increases stake to 15.3 per cent by October 2002 -Durgapur grinding unit

2002 -Grasim increases its stake in L&T to 14.15 per cent -Arakkonam grinding unit -The Grasim Board approves an open offer for purchase of up to 20 per cent of the equity shares of Larsen & Toubro Ltd (L&T), in accordance with the provisions and guidelines issued by the Securities & Exchange Board of India (SEBI) Regulations, 1997.

2003 The board of Larsen & Toubro Ltd (L&T) decides to demerge its cement business into a separate cement company (CemCo). Grasim decides to acquire an 8.5 per cent equity stake from L&T and then make an open offer for 30 per cent of the equity of CemCo, to acquire management control of the company

2004 Completion of the implementation process to demerge the cement business of L&T and completion of open offer by Grasim, with the latter acquiring controlling stake in the newly formed company UltraTech 2006 -Narmada Cement Company Limited amalgamated with UltraTech pursuant to a Scheme of Amalgamation being approved by the Board for Industrial & Financial Reconstruction (BIFR) in terms of the provision of Sick Industrial Companies Act (Special Provisions) - Formerly known as Ultratech Cemco Limited. The Group's principal activities are to manufacture and market clinker and cement in India

- Ultratech Cement Ltd has inducted Mr. Saurabh Misra into the Board as an Additional Director and appointed Managing Director of the Company.

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- Ultratech Cement receives order from BIFR.

- Ultratech Cement Ltd has appointed Mr Girish M Dave as a Director on the Board of the Company.

2009

-UltraTech to absorb Samruddhi to form India's biggest cement firm

-Ultratech to be the lead sponsors of Rajasthan Royals

-UltraTech to consider Grasim merger proposal

2010

- Ultratech Cement Ltd has appointed Mr. 0 P Puranmalka as Additional Director with immediate effect.

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Mission

To deliver superior value to our customers, shareholders, employees and society at large

Vision

"To actively contribute to the social and economic development of the communities in which we operate. In so doing, build a better, sustainable way of life for the weaker sections of society and raise the country's human development index."

Values

Integrity Commitment Seamlessness Passion Speed

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MANAGEMENT TEAMS

Board of Directors

Mr. Kumar Mangalam Birla, Chairperson

Mrs. Rajashree Birla

Mr. R.C.Bhargava

Mr. G.M.Dave

Mr. N.J.Jhaveri

Mr. S.B.Mathur

Mr. V.T.Moorthy

Mr. S.Rajgopal

Mr. D.D.Rathi

Mr. O.P.Puranmalka, Wholetime Director

Executive President & Chief Financial Officer

Mr.K.C.Birla

Chief Manufacturing Officer

Mr. R.K.Shah

Chief Marketing Officer

Mr. S.N.Jajoo

Chief People Officer

Mr. C.B.Tiwari

Company Secretary

Mr. S.K.Chatterjee

Awards & Achievements

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While ‘Customer Satisfaction’ is an important indicator used at UltraTech to

enhance the company’s performance, its pursuit of excellence has been

acknowledged across multiple performance criteria by experts and contemporaries.

The company has, over the years, won numerous awards across categories such as

export, quality, safety among others. While these awards are a great source of

pride, yet more importantly, they inspire them to continuously push the very

benchmarks of quality a little higher, everyday.

UltraTech Cement is easily amongst the most unique brand in its category. The

consumer perception of UltraTech is built around the attributes of ‘modernity’,

‘quality’ and ‘technological superiority’. Based on these defining facts, the brand is

positioned as the expert for all construction needs. UltraTech has been recently

bestowed with the title of consumer validated ‘Superbrand’ by the Superbrands

Council and consumer selected ‘Powerbrand’ by Powerbrands India.

A majority of UltraTech’s state-of-the-art manufacturing units are accredited with the highest quality standards and certifications such as ISO 9001 for quality systems, ISO 14001 for environmental management systems and OHSAS 18001 for occupational hazard and safety management systems.

UltraTech has pursued excellence in all its areas of operations and has numerous accolades to its credit. Clients in India and across the world have consistently endorsed UltraTech’s adherence to the highest quality standards. The lists of export awards won by UltraTech provide ample proof of its uncompromising standards on product quality. UltraTech has been on the roll call of top exporters of the Chemicals & Allied Export Promotion Council, year after year. UltraTech has also won the Capexil Certificate of Export Recognition - Top Exporter - Cement, Clinker, Asbestos and Cement Products for the years 2000, 2002 and 2003.

Awards in the field of –11

1. Export2. Environment3. Safety4. Finance5. CSR6. Quality7. ISO/SA/OHSAS8. Others

Finance

Balance sheet (Rs in Crore)

12

Mar ' 12 Mar ' 11 Mar ' 10

Mar ' 09

Mar ' 08

Sources of funds Owner's fund Equity share capital 274.07 274.04 124.49 124.49 124.49Share application money - - 1.99 1.68 0.77Preference share capital - - - - -Reserves & surplus 12,585.75 10,392.0

04,482.17 3,475.93 2,571.73

Loan funds Secured loans 2,012.09 2,789.76 854.19 1,175.80 982.66Unsecured loans 1,796.04 1,354.84 750.33 965.83 757.84Total 16,667.95 14,810.6

46,213.17 5,743.73 4,437.49

Uses of funds Fixed assets Gross block 19,014.48 17,942.2

78,078.14 7,401.02 4,972.60

Less : revaluation reserve - - - - -Less : accumulated depreciation 7,379.66 6,542.02 3,136.46 2,765.33 2,472.14Net block 11,634.82 11,400.2

54,941.68 4,635.69 2,500.46

Capital work-in-progress 3,163.02 1,105.32 259.37 677.28 2,283.15Investments 3,788.77 3,730.32 1,669.55 1,034.80 170.90Net current assets Current assets, loans & advances 4,501.82 3,920.31 1,496.18 1,378.35 1,317.49Less : current liabilities & provisions

6,420.48 5,345.56 2,153.61 1,982.39 1,834.51

Total net current assets -1,918.66 -1,425.25 -657.43 -604.04 -517.02Miscellaneous expenses not written - - - - -Total 16,667.95 14,810.6

46,213.17 5,743.73 4,437.49

Notes: Book value of unquoted investments

3,697.10 3,730.32 1,669.55 1,034.80 170.90

Market value of quoted investments

90.23 - - - -

Contingent liabilities 5,892.68 4,220.47 420.26 355.07 645.17Number of equity sharesoutstanding (Lacs)

2740.65 2740.42 1244.87 1244.86 1244.86

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Profit Loss Account(Rs in Crore)

Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

Mar ' 08

IncomeOperating income 18,270.69 13,205.64 7,042.82 6,385.50 5,512.43ExpensesMaterial consumed 3,620.80 3,013.54 1,588.44 1,193.97 1,008.92Manufacturing expenses 4,489.06 3,302.56 1,528.33 1,805.56 1,314.78Personnel expenses 855.21 690.64 250.28 216.76 171.55Selling expenses 4,419.48 3,168.94 1,477.88 1,256.46 1,143.02Adminstrative expenses 819.34 487.27 224.27 177.93 160.03Expenses capitalised -39.11 -10.51 -4.02 -8.38 -13.37Cost of sales 14,164.78 10,652.44 5,065.18 4,642.30 3,784.93Operating profit 4,105.91 2,553.20 1,977.64 1,743.20 1,727.50Other recurring income 121.60 253.22 101.71 99.29 87.31Adjusted PBDIT 4,227.51 2,806.42 2,079.35 1,842.49 1,814.81Financial expenses 223.86 287.91 124.11 134.09 81.93Depreciation 902.56 765.73 388.08 323.00 237.23Other write offs - - - - -Adjusted PBT 3,101.09 1,752.78 1,567.16 1,385.40 1,495.65Tax charges 956.69 507.48 494.92 384.44 499.40Adjusted PAT 2,144.40 1,245.30 1,072.24 1,000.96 996.25Non recurring items 250.27 33.41 21.00 -23.94 11.36Other non cash adjustments 51.52 125.52 - - -Reported net profit 2,446.19 1,404.23 1,093.24 977.02 1,007.61Earnigs before appropriation

5,229.78 4,133.60 3,531.64 2,575.14 1,782.77

Equity dividend 219.25 164.42 74.69 62.24 62.24Preference dividend - - - - -Dividend tax 35.57 26.67 12.41 10.58 10.58Retained earnings 4,974.96 3,942.51 3,444.54 2,502.32 1,709.95

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Capital structure (Rs in Crore)

From Year

To Year

Class Of Share

Authorized Capital

Issued Capital

Paid Up Shares (Nos)

Paid Up Face Value

Paid Up Capital

2011 2012 Equity Share

280.00 274.07 274065301 10 274.07

2010 2011 Equity Share

280.00 274.04 274041665 10 274.04

2009 2010 Equity Share

130.00 124.49 124487079 10 124.49

2008 2009 Equity Share

130.00 124.49 124485879 10 124.49

2007 2008 Equity Share

130.00 124.49 124485879 10 124.49

2006 2007 Equity Share

130.00 124.49 124485879 10 124.49

2005 2006 Equity Share

130.00 124.40 124398621 10 124.40

2004 2005 Equity Share

130.00 124.40 124398621 10 124.40

2003 2004 Equity Share

130.00 124.40 124398621 10 124.40

2002 2003 Equity Share

30.00 30.00 29999993 1 3.00

2002 2003 Equity Share

30.00 30.00 7 10 -

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Corporate Social Responsibility

CSR is defined as operating a business that meets all exceeds the ethical, legal, commercial and

public expectations that society has of Business.

Making a difference

Before Corporate Social Responsibility found a place in corporate lexicon, it was already

textured into company’s group's value systems. As early as the 1940s, their founding father Shri

G.D Birla espoused the trusteeship concept of management. Simply stated, this entails that the

wealth that one generates and holds is to be held as in a trust for their multiple stakeholders.

With regard to CSR, this means investing part of their profits beyond business, for the larger

good of society.

While carrying forward this philosophy, company legendary leader, Mr. Aditya Birla,

weaved in the concept of 'sustainable livelihood', which transcended cheque book philanthropy.

In his view, it was unwise to keep on giving endlessly. Instead, he felt that channelizing

resources to ensure that people have the wherewithal to make both ends meet would be more

productive. He said, "Give a hungry man fish for a day, he will eat it and the next day, he would

be hungry again. Instead if you taught him how to fish, he would be able to feed himself and his

family for a lifetime." 

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Company strategy

Taking these practices forward, ultratech chairman Mr. Kumar Mangalam Birla

institutionalised the concept of triple bottom line accountability represented by economic

success, environmental responsibility and social commitment. In a holistic way thus, the interests

of all the stakeholders have been textured into company’s group's fabric.

The footprint of their social work today spans 2,500 villages in India, reaching out to seven

million people annually. Their community work is a way of telling the people among whom they

operate that they care.

Projects are planned after a participatory need assessment of the communities around the plants.

Each project has a one-year and a three-year rolling plan, with milestones and measurable

targets. The objective is to phase out their presence over a period of time and hand over the reins

of further development to the people. This also enables them to widen their reach. Along with

internal performance assessment mechanisms, their projects are audited by reputed external

agencies, who measure it on qualitative and quantitative parameters, helping them gauge the

effectiveness and providing excellent inputs.

Their partners in development are government bodies, district authorities, village panchayats and

the end beneficiaries — the villagers. The Government has, in their 5-year plans, special funds

earmarked for human development and they recourse to many of these. At the same time, they

network and collaborate with like-minded bilateral and unilateral agencies to share ideas, draw

from each other's experiences, and ensure that efforts are not duplicated. At another level, this

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provides a platform for advocacy. Some of the agencies they have collaborated with are UNFPA,

SIFSA, CARE India, Habitat for Humanity International, Unicef and the World Bank.

Company focus areas

Ultratech rural development activities span five key areas and their single-minded goal here is to

help build model villages that can stand on their own feet. Their focus areas are healthcare,

education, sustainable livelihood, infrastructure and espousing social causes.

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Education

Balwadis (pre-school)

Adult education

Non-formal education

Continuing education

Scholarships for girls, merit and technical education

Health and family welfare

Mobile clinics - doctors visit once a week

Medical camps - general and issue-based

Health training and awareness

Sanitation - toilets, training, smoking chulas.

Safe drinking water

Mother and child health

Reproductive health

Awareness building

Sustainable development and livelihood and agriculture

and watershed development.

Self-help groups

SGSY - dairy, readymade garments, jute project, basket

making, aggarbati making, bee keeping, durrie making.

Check dam

Irrigation

Land development

Soil and water conservation

Pasture development

Social forestry/ plantation activities/ nursery

Horticulture

Farmer training

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Infrastructure development

RoadsDamsCommunity centresHousesCulvertsElectricityHealth centresWater channelsSchools

For Employees

Relocation benefit:

a) Reimbursement of cost incurred for movement of goods

b) Travel Reimbursement

c) Relocation Allowance

Children’s Education Reimbursement

General Reimbursements

Hospitalization Insurance

Accident Insurance

Company Vehicle Leasing Scheme

Holidays & Leave Policy

Company Transportation

Leave encashment

Advance Salary

Awards and reorganization

Social events

Loans without interest

Employee Scholarship (with/without bond)

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Employee Compensation

Sponsorship (Sports)

Parental Care

Discounts and Coupons

For the Environment

Committed to sustainable development, to meeting the needs of the present without in

any way jeopardizing the welfare of future generations.

Business strategies consciously factor environment conservation as a major principle.

Plants are ISO14001 Environment Management Systems Certified and adhere to OHSAS

18001 standards.

SWOT ANALYSIS

Strength

UltraTech Cement Limited (UltraTech) is India-based one of the largest cement

manufacturing company. The company along with its subsidiaries is engaged in the business of

manufacturing, marketing, distribution and sales of the cement and cement related products.

UltraTech’s other cement related products are ready mix concrete and cement clinker. The

product portfolio of the company comprises Portland cement, Portland blast furnace slag cement

and Portland Pozzolana cement. The company also exports cement and clinker to countries

around the Indian Ocean, Africa, Europe, and the Middle East. The company has an annual

cement production capacity of 18.2 million tones. It is a subsidiary of Grasim Industries Ltd. The

company operates two subsidiary companies namely, Dakshin Cement Limited and UltraTech

Ceylinco (P) Limited. The company is headquarter at Mumbai in India.The company reported

revenues of (Rupee) INR 66,643.30 million during the fiscal year ended March 2009, an increase

of 16.43% over 2008. The operating profit of the company was INR 13,678.20 million during the

fiscal year 2009, a decrease of 9.73% from 2008. The net profit of the company was INR

9,780.60 million during the fiscal year 2009, a decrease of 3.17% from 2008.

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Strengths of UltraTech are as follows-

Better quality

Long relationship with customer.

Maintains a world class infrastructure.

Market share.

Large distribution network.

Proper research and development.

Strong financial backing

Weakness

Everyone looks up to a visionary leader to understand the possibilities tomorrow holds.

And you have a greater responsibility to bear when you are India’s largest cement company.

In the present day context, UltraTech is playing an important role in the infrastructural

development of the country. No wonder, UltraTech’s every creation is a window to tomorrow.

And an effective communication was needed to reflect the same.It was quite a daunting task for

Interface Communications, the advertising agency for UltraTech, to get the right mix of

emotions and technological superiority that appeal to everyone right across IHBs to architects

and large commercial establishments. 

The weaknesses of UltraTech are as follows-

Delay in supply.

Inconsistency of Supply.

Insufficient manpower

Opportunity

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When you view India through a prism, its multi-faceted refractions are awesome, unique

and partly distressing. A multiethnic, multi-religious, multilingual, multi-cultural diverse

democracy, rich in its distinctive heritage — India is, indeed, captivating. Our democracy

resonates throughout the world. Moreover, the way in which India has transformed itself from a

colonial, agri-based backwater economy into an independent, modern, knowledge-driven one is

the stuff of case studies at the best-in-class business schools the world over. While the youth

leader must appreciate these facets, he or she must have a thorough understanding of the

different strands that go into the weave of India. The partition in the aftermath of our freedom

struggle has left a scar, as has the divide in the name of God. India is a country of extreme

paradoxes. We are reckoned as a nation of tremendous opportunities and, yet, it is a reality that

India is a place of perpetual struggle. We have large tracts of our country that have yet to witness

any economic advancement.

Company should -

Develop new marketing areas.

Sign more MOUs with government regarding supply of cement for Government work.

Maintain the position of competition in the market.

Threats

Just a few years ago, the Aditya Birla Group bought over the cement business of L&T for

around ` 2,200 crore. L&T allowed its name to be used for about a year. O.P. Puranmalka, Group

Executive President, Grasim Industries, and Chief Marketing Officer, observes that in a very

short time the company had to establish a new brand name in the minds of the people and use the

L&T mind space. The task was Herculean. Explaining the strategy behind the new brand name,

Mr. Puranmalka said: "We wanted to capture the gene code of L&T in the new brand name. So

we commissioned research on customer perception about the L&T Cement brand. Of course, we

were very sure in our minds that L&T Cement epitomised engineering prowess, technology

quality and modernity."

In step with its global agenda, the cement business of the Aditya Birla Group, is

orchestrating a contemporary brand makeover. With UltraTech Cement, the Aditya Birla Group

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has established itself as not only the most respected domestic player but also among the global

leaders in cement.

UltraTech has strong competitors like ACC, LAFARGE, AMBUJA Etc., although the

Brand Equity of ULTRATECH CEMENT is AT PAR with ACC and LAFAGE, to maintain the

same continuous follow-up in all respect is necessary.

The Ultratech cement has to adopt necessary strategies to compete with strong

competitiors in order to retain its market position and the goodwill in the market.

Production

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

facilities are spread across eleven integrated plants, one white cement plant, twelve grinding

units, and five terminals — four in India and one in Sri Lanka. Most of the plants have ISO 9001,

ISO 14001 and OHSAS 18001 certification. In addition, two plants have received ISO 27001

certification and four have received SA 8000 certification. The process is currently underway for

the remaining plants. The company exports over 2.5 million tonnes per annum, which is about 30

per cent of the country's total exports (2009). The export market comprises of countries around

24

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

strategy for growth.

Ordinary Portland cement

Portland blast furnace slag cement

Portland Pozzolana cement

Ordinary Portland cement

Ordinary Portland cement is the most commonly used cement for a wide range of

applications. These applications cover dry-lean mixes, general-purpose ready-mixes, and even

high strength pre-cast and pre-stressed concrete. 

Portland blast furnace slag cement

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

blast-furnace slag, a non-metallic product consisting essentially of silicates and alumino-silicates

of calcium. Slag brings with it the advantage of the energy invested in the slag making. Grinding

slag for cement replacement takes only 25 per cent of the energy needed to manufacture Portland

cement. Using slag cement to replace a portion of Portland cement in a concrete mixture is a

useful method to make concrete better and more consistent. Portland blast-furnace slag cement

has a lighter colour, better concrete workability, easier finish ability, higher compressive and

flexural strength, lower permeability, improved resistance to aggressive chemicals and more

consistent plastic and hardened consistency. 

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Portland Pozzolana cement

Portland pozzolana cement is ordinary Portland cement blended with pozzolanic

materials (power-station fly ash, burnt clays, ash from burnt plant material or silicious earths),

either together or separately. Portland clinker is ground with gypsum and pozzolanic materials

which, though they do not have cementing properties in themselves, combine chemically with

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

wet cracking, thermal cracking and has a high degree of cohesion and workability in concrete

and mortar.

Concrete

Concrete is most vital material in modern construction. It has versatile properties like

easy mould ability, high compressive strength and long lasting durability. These properties of

concrete have made it most popular construction material for all types of civil engineering

works. The latest developments in concrete technology have made it possible to use it in intricate

and architecturally complex structures, requiring high degree of performance and aesthetic

appearance.

In addition to normal concrete, other varieties in use are, high strength and high

performance concrete, self compacting, light weight, high density, fibre reinforced, polymer,

coloured concrete etc.

The ingredients of good and bad concrete are the same. The difference lies in the

technology used for production, transportation and placement. The making of concrete is an art

as well as a science. Science because all the ingredients are proportioned as per the standard

codes of practice to get the targeted strength & durability, and an art because in addition to

accurate proportioning, quality of concrete depends on the way it is mixed, placed, compacted,

finished, cured and protected. Ready mix Concrete (RMC) technology results in a perfect blend

of the Art and Science.

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In all the developed as well as most of the developing nations, use of RMC for

construction has made it possible to achieve speed and quality. The advent of commercial RMC

in India is about a decade old, but in recent years it has become the preferred choice of architects,

engineers and consumers. 

UltraTech Concrete is committed to provide customised high quality RMC for ensuring

speedy construction.

Process

Portland cements are made by grinding a mixture of limestone, clay and other

corrective materials, viz. Lateritic, Bauxite etc. Essential constituents mainly are

Lime, Silica, Alumina and Iron Oxide. The process of manufacturing consists of

grinding of raw materials into fine powder, mixing them intimately and burning in

a kiln at about 1400 deg. C. The resultant product is called Clinker. Clinker is

cooled, ground to fine powder with gypsum. The end product is cement.

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Production Plants in India

28

Type of Unit No. Integrated Plants 11

Grinding Units 11

Bulk Terminals 5

Jetties 4

UltraTech Head Office 1

Human Resource Department

Introduction:

29

Human resource management is the planning, organizing directing and controlling of the procurement development compensation integration maintenance and separation of human resource to the end that individual, organizational and social objective are accomplished. Thus, human resource management refers to set of programmers, functions and activities designed and carried out in order to maximize both employees as well as organizational effectiveness. The strength of personnel department refers to the number of employees working in the unit. It depends to a great extend on the type of the unit that is it is a large scale unit or a small scale unit. So the strength of employees in this kind of unit is very high. But for a small scale unit there are hardly any departmentation and so all the people work together. Hence it is very obvious that the number of employees working in these types of units will be less.

HRM’S FUNCTION:

Man-power planning Recruitment Selection Orientation Wages & salary administration Motivation Performance appraisal Employee welfare

About Company:

Man Power Planning -

In Ultratech Cement Ltd., the human resource planning is done on the basis of demand and supply of human resource.

30

Recruitment & Selection –

Recruitment and Selection is made on the basis of Internal Sources of Recruitment and Selection criteria’s are set in the Human Resource Planning.

Orientation –

There is a Group Orientation of the New Employees so that they can get a basic introduction about the company and Group Orientation saves the time of both Employees and Employer.

Wages & Salary Administration –

Wages and Salary are decided on the basis of Job and Professional Qualification of the Employee.

Motivation -

Constant motivations are given to employees so that the employees work efficiently and the employee turnover reduces.

Performance Appraisal –

Performances of the employees are evaluated every year and promotions are given on the basis of their performance.

Employee Welfare –

Different types of employee welfare activities are organized in the company.

Marketing

Marketing is the process of communicating the value of a product or service to customers. Marketing might sometimes be interpreted as the art of selling products, but sales is only one part of marketing. As the term "Marketing" may replace "Advertising" it is the overall strategy and function of promoting a product or service to the customer.

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From a societal point of view, marketing is the link between a society’s material requirements and its economic patterns of response. Marketing satisfies these needs and wants through exchange processes and building long term relationships. The process of communicating the value of a product or service through positioning to customers. Marketing can be looked at as an organizational function and a set of processes for creating, delivering and communicating value to customers, and managing customer relationships in ways that benefit the organization and its shareholders. Marketing is the science of choosing target markets through market analysis and market segmentation, as well as understanding consumer buying behavior and providing superior customer value.

Products related to marketing

• Ultratech Cement

• Ultratech Concrete

• Ultratech Building Products

• Ultratech Building Solutions

• Birla White

• Star Cement

Marketing Orientation

Production Concept –

The Production Concept is one of the oldest concepts in business. Production Concepts say that, ‘consumer will prefer that product which is economical in nature and which is easily available in the market’. According

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to this concept company should concentrate on achieving high production efficiency, low cost and mass distribution.

Product Concept –

Product concept says that a product which is having unique and distinguishes features than its competitors is preferred by the customers. It means that product concept holds that consumer will favour those products that offer the most quality performance or innovative features.

Selling Concept –

Selling concept says that a market should aggressively promote its product or market or should put an effort to promote its product. Otherwise it will not be purchased by the customers. In other words if your product is good in quality and features than also aggressive marketing should be done. The purpose of such companies is to sell more for earning more profits. Advertising with celebrities and various schemes can be helpful.

Marketing Concept –

The Marketing concept emerged in the mod of 1950s. The marketing concept says that marketer should undertake aggressive marketing strategy to understand the needs of the customers. The marketing concept says that the key to achieving organizational goals consists of the company being more effective than competitors in creating, delivering and communicating superior value to its customers.

Societal Marketing –

This concept suggests that every marketer should provide the qualitative goods at a reasonable price to fulfil his service towards the society.

Holistic Marketing –

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This concept is based on the development, design and implementation of marketing programs, processes and activities that recognize their breadth and interdependence. Holistic marketing recognize that everything matters with marketing. It integrates all the aspect of the business like internal marketing, relationship marketing, integrated marketing and social responsibility.

About Company:

In the Company there is a use of Product concept as it gives the different types of cement to the customers and consumers.

There is a frequent use of Marketing concept and Holistic concept as in today’s world customer or consumer satisfaction is mainly seen to retain the customer and to make them a hardcore loyal towards the company.

Marketing Mix

Marketing mix includes 4 P’s of Marketing. They are –

Product Price Place

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Promotion

About Company:

Related to Product

Ultratech is providing different kinds of product related to constructions and variety of products are available in the market.

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They are giving the superior quality of goods which makes the construction more powerful and quality assurance is given by ultratech cement ltd.

Cement Products have different features as per the different requirements of the customers or consumers.

There are different packaging pattern of cement so that the cement does not losses its substance and hardness remains in the cement.

Cement comes in the size of 10kg, 25kg, 50kg and 100kg bags. Many a time company is providing the facility of transportation for the

customers if the order is in bulk.

Branding

Efforts towards Branding

Brand UltraTech enjoys a niche space in the minds of its customers. It represents ‘expertise’, ‘strength’ and ‘modernity’, all interwoven with the help of a strong

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emotional connect. The company doesn’t just sell a product or a service, it sells solutions. These solutions help people build their lives and sustain them for generations. UltraTech is often known as ‘the expert who cares’. The title, while reinforcing the values that UltraTech stands for, also signifies the strong bond that exists between the brand and its customers, which has been forged over the years.

The UltraTech brand not only helps build cities and homes, it helps build trust and ultimately, builds lives. The name inspires trust among all the stakeholders: engineers, builders, contractors, individual house owners, governments, investors, shareholders and the society at large. The brand has consistently justified this trust. The brand’s positioning of ‘being the expert’ translates into advertising imagery that depicts progress, cutting-edge technology and modernity. UltraTech’s famous tagline ‘The Engineer’s Choice’ reflects its brand promise of being the ‘expert’. Excellent product quality and customer care are the hallmarks of UltraTech cement.

“The name UltraTech with the signature line, 'The Engineer's Choice', admirably captures the premium nature of the brand and its salience." Mr. O.P. Puranmalka, Business Director, UltraTech Cement Limited, and Director, Aditya Birla Management Corporation Private Limited.

Branding Scope

The UltraTech brand bears a strong association with popular Indian sports namely cricket and hockey. The in-film branding with ‘Chak De India’ and the IPL connect with the Rajasthan Royals (Season 2, 3 & 5) and Deccan Chargers (Season 4) has made UltraTech a youthful brand to reckon with. Birla White’s homegrown ‘Yuvaratna’ Awards recognise architectural and engineering excellence. UltraTech is also associated with the Business India exhibition - ‘A Celebration of Architecture’. All these affiliations have strengthened Brand UltraTech's

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association with the fraternity of students, engineers, architects, builders and the construction community at large.

Brand Achievements

UltraTech Cement has been honored with the title of the customer validated award - ‘SUPERBRAND’ for the years 2011 and 2012 by the Superbrands Council. It has also been bestowed with the title of the customer selected ‘POWERBRAND’ for the year 2012 by Powerbrands India.

Superbrands is a global organisation that recognizes, showcases and pays tribute to the best brands in each country. It is a prestigious award and recognizes the brand

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custodian‘s persevering efforts to build a brand that is strong on consumer perceptions, thereby making it resilient to fluctuating economic conditions.

For the fourth edition of Consumer Superbrands, UltraTech was a part of a very exclusive group of winners selected first by the consumer and then by an independent Superbrands Council comprising of the most eminent professionals from India’s corporate sector. This is an important recognition of our efforts and serves our objective of getting closer to the consumer. In a market comprising of several highly regarded competitors, this is certainly an outstanding achievement.

Birla White, a brand of UltraTech, too has earned the distinction of ‘SUPERBRAND’ for the second consecutive time and is also a ‘POWERBRAND’.

UltraTech Superbrand Award 2012 Birla White Superbrand Award 2012 UltraTech Superbrand Award 2011 Birla White Superbrand Award 2011 Birla White Superbrand Award 2009

Related to Price

The regional variation in the Indian market has resulted in the cement prices across regions witnessing movement within a band, with no appreciable increase in any region. Differences in regional demand supply situation have translated into price differences across regions. Prices are lower in Southern regions where there is normally a supply surplus. However, prices are higher in Eastern and Western

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regions where shortages exist. The surplus position had resulted in significant pressure on price realizations in recent years.

In the field of marketing management process, it basically consists of four steps:

1. Analyzing marketing opportunities .

2. Selecting target markets

3. Developing the marketing mix

4. Managing the marketing effort

About Company:

Price of Cement differs as per the Geographical Area.

Price of Cement includes the transportation cost also so there is a little difference in the prices of cement

In Gujarat, for the bag of 25kg of cement the price of cement is around 320 Rs which cost to 12-13Rs per kg.

Discounts are given on the bulk orders or as per the contract.

Allowances are given to the customers for their purchases direct from the manufacturing units. Credit Facilities are given to the customers.

Related to Place

Distribution Channel

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Companies invariably hire agents or transport cements to own or government warehouses either via roadway or railways. In case of exports, cement reaches the nearest port via roadways or railways and is then transferred to the importing country. Domestically, from agents or warehouses the cement is transported to the dealers/distributors and in turn to sub dealers who finally sell it to the end users. There may or may not be physical ownership of goods. In the second case, dealers and sub dealers take order from buyers and place it to the companies, co ordinate and monitor the timely dispatch of said orders.

There is a use of 3 levels of channelling. Manufacturer to Agents to Wholesaler to Retailer to End User.

Supply Chain

The team orders and maintains the inventory of stock keeping units so that unit does not run out of critical supplies at any point. The team also ensures that all

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stock keeping units of items used in the unit are received at stores from vendors and distributed to the different outlets on time. Other functions include:

Distribution Function Configuration:

Number, location and network missions of suppliers, production facilities, distribution centers, warehouses, cross-docks and customers.

Distribution Strategy:

Includes functions of operating control (centralized, decentralized or shared), delivery scheme (e.g., direct shipment, pool point shipping, Cross Docking, DSD (direct store delivery).

Information:

Integration of and other processes through the supply chain to share valuable information, including demand signals, forecasts, inventory, transportation, and potential collaboration etc.

Inventory Management:

Quantity and location of inventory including raw materials, work-in-process and finished goods.

Related to Promotion

Promotion is one of the four elements of marketing mix (product, price, promotion, distribution). It is the communication link between sellers and buyers for the

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purpose of influencing, informing, or persuading a potential buyer's purchasing decision.

There are seven main aspects of a promotional mix these are -

Advertising - Any paid presentation and promotion of ideas, goods, or services by an identified sponsor.

Examples: Print ads, radio, television, billboard, direct mail, brochures and catalogue, signs, in-store displays, posters, motion pictures, Web pages, banner ads, and emails.

Personal Selling - A process of helping and persuading one or more prospects to purchase a good or service or to act on any idea through the use of an oral presentation.

Examples: Sales presentations, sales meetings, sales training and incentive programs for intermediary salespeople, samples, and telemarketing. Can be face-to-face or via telephone.

Sales promotion - Media and non-media marketing communication are employed for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability.

Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.

Public relations - Paid intimate stimulation of supply for a product, service, or business unit by planting significant news about it or a favourable presentation of it in the media.

Examples: Newspaper and magazine articles/reports, TVs and radio presentations, charitable contributions, speeches, issue advertising and seminars.

Corporate image - The Image of an organization is a crucial point in marketing. If the reputation of a company is bad, consumers are less willing to buy a product from this company as they would have been, if the company had a good image.

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Direct Marketing - is often listed as a the fifth part of the marketing mix

Exhibitions - are try-outs. You make your product, and let potential buyers try the product, these way, you know directly what people see in your product. The downside, your competitor can see exactly what you are doing.

How to Establish a Promotional Mix

You drive sales by promoting the benefits of your company's goods or services to pools of potential buyers. The ways you promote your organization will largely determine whether you successfully plant the right messages in the minds of your target audience. This module explains how you can establish a promotional mix best suited to your company's needs and resources.

Determine Your Target Market Determine Your Objectives Design Your Message Select Your Promotional Channels Determine Your Budget Determine Your Promotional Mix Measure the Results and Adjust.

Promotion through the Product life cycle

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As products move through the four stages of the product lifecycle different promotional strategies should be employed at these stages to ensure the healthy success and life of the product. Stages and promotion strategies employed.

Introduction

When a product is new the organizations objective will be to inform the target audience of its entry. Television, radio, magazine, coupons etc may be used to push the product through the introduction stage of the lifecycle. Push and Pull Strategies will be used at this crucial stage.

Growth

As the product becomes accepted by the target market the organization at this stage of the lifecycle the organization works on the strategy of further increasing brand awareness to encourage loyalty.

Maturity

At this stage with increased competition the organization take persuasive tactics to encourage the consumers to purchase their product over their rivals. Any differential advantage will be clearly communicated to the target audience to inform of their benefit over their competitors.

Decline

As the product reaches the decline stage the organization will use the strategy of reminding people of the product to slow the inevitable

About Company:

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Ultratech Cement is mostly promoting its product through Advertising, Sales Promotion and Public Relations.

Promotional through Product Life Cycle is not possible in case of Cement Industry as the product not go into declining stage until the competitors produce a new product

Recent Advertisement

Segmentation

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Market segmentation consists of a group of customers who share a similar set of

needs and wants. Segmentation refers to divide the customers into groups on the

basis of some common needs or characteristic.

Basis of Segmentation

Geographical Segmentation –

It refers dividing the customers on the basis of the place where they are

living various geographic areas consists of region, city, rural and semi rural

area. The purpose of the company for such segmentation is to understand the

needs of people living in different geography. Geographic segmentation is

very useful because needs of the customers are influenced by the geography.

Demographic Segmentation –

In Demographic segmentation the market is divided into the groups on the

basis of variables such as age, family size, family life cycle, gender, income,

occupation, education, religion, etc. There are two reasons for using the

demographic segmentation one is that it is easier to measure them while

second reason is that customer’s need and wants are different as per the

demographic variable.

Psychographic segmentation –

Psychographic segmentation refers to be the division of the customers on the

basis of their life style, status, personality and values.

Behavioral Segmentation –

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In behavioral segmentation buyers are divided into the groups on the basis of

their knowledge and attitude toward the product. Occasion, benefits, usage

rate, buyer readiness stage, loyalty status and attitude are various behavioral

segmentation elements.

About Company:

Ultratech is doing market segmentation on the basis of Geographical

Segmentation where the segment is done on basis of rural areas, city areas,

semi rural areas and region.

Targeting

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Once the firm has decided its market segmentation opportunities it has to decide

how many and which once to target. Marketers are increasingly combining several

variables in efforts to identify smaller, better defined target groups.

Steps of Targeting

1. Evaluation of Target Market

In evaluation of target market segments a firm must look at the following 3

factors:

Segment Size and Growth

Segment Structural attractiveness

Company Objective

2. Selection of Target Market

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Evaluation of Target Market

Selection of Target Market

After evaluating different segments the company must decide which and

how many segments to serve in target market. Target market is a set of

buyers sharing common needs or characteristic that the company decides to

serve.

Undifferentiated Target Market (Mass Market)

Differentiated Target Market (Strategic Market)

Concentrated Target Market (Niche Market)

Individual Market (Micro Market)

About Company

Ultratech cement is targeting on the basis of Differentiated Market so that

the new varieties of cement can be given to the customers. This step can get

success only if segmentation is done properly.

Positioning

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Positioning can be defined as the way by which a product has occupied a place in

the minds of customers related to the competitors.

Positioning is the act of designing the company’s offering and image to occupy a

distinctive place in the minds of the target market.

To make the buying decisions easy customers are categorizing the products as per

their position in the minds. A product’s positioning is a complex set of perceptions,

impressions and feelings that consumer holds for the product.

Basis of Positioning

1. Product Differentiation

2. Service Differentiation

3. People Differentiation

4. Image Differentiation

About Company

Ultratech uses Product Differentiation and Image Differentiation as its Brand name

Aditya Birla Group itself has a great reputation in the minds of the people.

Marketing Research at Ultratech Cement

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Marketing research is a systematic gathering recording and analysis of data about the problems relating to the marketers of goods and services. Thus it includes investigation of market, segments, and products. The market research answers the questions in respect of different markets. The areas of market research are:

Determining the size of both current and also potential market.

Assessing the market brands.

Ascertaining the strength and weakness of competitors.

The current contemplated legislations of the government towards the particular product, including taxation policy

Demand and sales forecast

Research & Development Department

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Research & Development Department is the back-bone of an organization. It helps the organizations in developing new products and means to meet the need of customers in an effective way. It also shows how open is an organization towards the change. In Ultratech following functions are done by the R & D department:

Able to meet customers enhanced requirements above R & D Able to meet shorter turnaround times demanded by customer Automated tools helped to meet extra volume of production and new

customer requirements Maintaining leadership as a technologically advanced supplier Customized Production & Project Management tools development for

customers Able to acquire new projects which involves project management Providing value added services to the customers and bringing-in additional

projects. Introducing new workflow and systems as per customer’s requirements

Strategies Adopted by UltraTech

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Promise: Excellent product quality and customer care are the hallmark of

UltraTech.

Capitalizing the opportunity of the geometric growth in the housing sector

and the government's thrust on infrastructure.

Right decision at right time

Having excellent Product in hand

Constantly striving to improve and capture more number of market share

Training to Staff

Promotion through movies

Sponsorship

Opinion towards Marketing

Increase frequency of advertisements on T.V., radio, internet and print

media.

Increase Strategic Alliance

Increase visibility by campaign and other modes.

Increase number of distributors and agents

Increase number of warehouse

Having micro-planning in place

Conclusion

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The visit of this industry had given me the great knowledge about the business. After visiting the Ultratech Cement Ltd. Industry I can say that this industry is fulfilling the needs of the consumer as well as of customer. This industry is making good profit in the market so it is a nice industry to visit.

Bibliography

Marketing Management by Philip Kotler www.ultratechcement.com Google Search Engine

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