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Established in 1873 – 1st
cement plant.
German based company with Highly integrated technology.
• Western and Northern Europe
• Eastern Europe-Central Asia
• North America
• Asia-Australia-Africa
• Asia-Pacific
• Group Services
Expansion across more than 50 countries.
Geographically Divided into six Group areas:

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1st
Largest Aggregates in the World.
2nd
Largest Concrete Producer in the World.
Global, integrated supplier of building materials
3rd
Largest Cement Producer in the World.
Products
Cement
Aggregates
Concrete
Building Materials

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Rural Impact…
..”..First Mover Effect”

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Changing Profile of Rural
Markets
Earlier, Traditional Four P’s of Marketing ->
Product, Price, Place and Promotion.
Now, Marketing Mix to Improve four A’s ->
Awareness, Affordability, Availability, Acceptability
(Tools)
(Challenges)

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The “Rural” Opportunity
• Total retail market size: Rs. 9300 billion
• Total rural retail : Rs. 1500 billion in 2007 (incl. FMCG, Durables,
Agricultural inputs including tractors)
• Organised retail market size: Rs.350 billion (around 4% of total market)
• Market size of organized rural retail is negligible at present
R ural Market S iz e E s timation*
0
500
1000
1500
2000
2500
2000 2005E 2010F 2015FYe a r
Rs.Billion
R s . B illion
Source: Industry estimates, YES BANK analysis
* Organised rural retail market is negligible at present

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Factors that have led to Rural Purchasing Power
 The increase in procurement prices [the government sets the mini.
Support price – MSP] has contributed to arise in rural demand.
A series of good harvest on the back of several good monsoons boosted
rural employment in agricultural and allied activities.
Government Schemes like NERGS [National Rural Employment
Guarantee Scheme] guarantees 100-days of employment to one number of
every rural household reduced underemployment and raised wages –
Outlay of US $13.9billion.
Farmers benefited from loan waivers [introduced in last Union Budget].
Bharat Nirman program with an outlay of US $34.84 billion for augmenting
rural infrastructure is another step that has helped the rural economy.
THE PURCHASING POWER IS REFLECTED IN RURAL GROWTH
ACROSS A NUMBER OF CATEGORIES. [ E.g., Fiscal 2009-10 FMCG rural
volume growth is estimated to be 5% to 12% higher than urban growth
across a number of categories].

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Some Facts of Massive Rural Markets in India - What’s
happening?
 FMCG has grown at robust rate of 23%[last Year]
As durables shrink in urban India, rural market is witnessing 15% growth rate and 60%
of the durables market lies in rural India.
Telecom in rural India is growing at 31%.
State Bank of India (SBI) has started zero balance bank account program for villagers.
It hopes to cover 100,000 villages by 2012. the bank has tied up with India Post for some
services.
Maruti Suzuki, India’s leading manufactures, today sells 5% of vehicles in the rural
market. Company expects this number to rise to 15% in the next two years.
60% of India’s US $15 billion annual consumption of gold and gold jewelry is from rural
and semi-urban areas. The Tata’s have launched mass market jewelry brand –’Gold
Plus’. In rural areas gold Jewelry is not for ornamentation; it is a safety-net for
emergency situations.
Chick Shampoo Created the jasmine variant [in tune with the culture of woman using
Jasmine flavors to style their hair.]
Philips is moving forward with the creation of low-cost smokeless “gas stoves” and
“lanterns” that will be useful to such markets.

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Some Facts of Massive Rural Markets in India-What’s
happening? (..Cont)Voltas is trying to sell air conditioners to the rural rich – despite facing difficulties in penetration
due to widespread and scattered nature of territory.
Television has invaded rural India. It reaches even very small villages through community
sets. TV has changed all that, and created aspirations where once there was resistance to
change.
LG Electronics developed a customized TV (cheap and capable of picking up low intensity
signals) for rural markets and christened it “Sampoorna”. It sold 1-lakh sets in the first yr.
Some FMCG players continue to expand rural penetrations [e.g., HUL’s Project Shakti, Tata
Tea’s Gaon Chalo].
Coca-Cola’s parivartan program has trained more than 6,000 retailers to display and stock
products.
Godrej introduced three brands of Cinthol, Fair Glow and Godrej (soap) in 50-gram pack
priced at Rs 5/-, Addidas and Reebok increased their Sales by 50% in rural market by reducing
prices.
Videocon introduced a washing machine without a drier for 3000/-, DCM Shriram develops a
low cost water purifier especially for rural areas.
Dabur has created a training module ASTRA (advanced sales training for retail ascendance)
in several regional languages. A number of auto companies have launched rural specific
campaigns.

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Company Transportation Network Customer
Product
Committment
Integrity
Behaviour
Communication
Service
Quality

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News Paper Advertisement…

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Initiative…
• Sub Dealer Listing – Dealer Wise
• ERP Code Generation for Sub Dealer
Dispatch Details
Quarterly Cheque
• Shop/Wall Painting
• Technical Service
• Mason Meet
• Contractor Meet

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Schemes For Sub Dealers...
• Company Qtrly Cheque Scheme
• Torch Scheme(At present running)

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Compelling!The Change is..

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