Jaypee Cement Ltd is a large cement producer in India with 22.8 million tonnes of annual production capacity. It was founded in 1958 and has grown significantly over decades. The company operates modern plants and has a track record of profitability and transparency. It supplies cement for major infrastructure projects across India. The company aims to expand further and improve efficiencies to maintain profits in a competitive market.
2. Table of Contents
Executive Summary
1. Company History
2. Industry Structure
3. Environment
4. Products
5. Price
6. Distribution Network
7. Promotion
8. Customer Survey Analysis
9. Suggestions
10. Appendix
a. Sample Dealer Questionnaire
b. Sample Customer Questionnaire
c. Bibliography
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3. Executive Summary
The purpose and scope of document is to study, analyze and understand the business and
marketing practices of Jaypee cement. In order to achieve this objective, two stages were
identified –Data collection stage and the Analysis stage.
The first stage includes the data collected from various sources regarding the following:
1. The History of the company, its subsidiaries, The board of Directors, Operation units in
India.
2. The closest competitors in the cement industry –Binani cement, AMBUJA cement, ACC,
Grasim, Utratech cement, Lafarge cement.
3. Information about the 4 P’s of marketing – Product, Price, Place and Promotion in the
Punjab market.
4. A customer and dealer survey in Punjab to understand their decision making Process.
The analysis stage includes understanding the implications and relevance of the data collected
and drawing conclusions about the company’s business and marketing decisions .The Indian
Cement industry is mainly divided into two segments – House Hold Cement Segment and
Industrial Cement Segment. Jaypee Cement being used in the construction of large dams and
hydro electric power projects like the Tehri Dam in Uttarakhand, Dul Hasti and Baglihar
projects in J&K, Indra sagar dam in M.P, Teesta-V project in Sikkim, Baspa-ll, Nathpa Jhakri and
Chamera-ll projects in H.P, Tala project in Bhutan, Karcham-Wangtoo Project in H.P, Sardar
Sarovar Project in Gujrat, Omkareshwar Hydro Electric Project in M.P and Vishnuprayag Project
in Uttarakhand
Known for its innovative marketing and distribution strength the company is one of the
consistent performers in the Indian scene. The company has a track record of profitability,
transparency in operations. Factors that have been given emphasis here include the low per
capita consumption of cement .The impact of recent issues & trends (like raw material costs,
excise duty rationalizations, quality consciousness in user segments) on the industry dynamics
can also be seen. Cement consumption has been growing at a CAGR of over 8% p.a. in the last
five years and this trend is likely to continue in the coming years.
At present industry requires highest efficiency in physical distribution as companies not
working on operational efficiency business models. Companies need to work on improving
internal efficiencies to retain profits which are under pressure on account of dropping prices.
The customer (retailer for the company) is seen to be dictating terms so companies have no
choice but to lure more customers through incentives. At the same time, companies also need to
attract final consumers by offering value-added services. So we came up with the following
recommendations: To take up trade promotions, to build up relations with the intermediaries, a
need to improve current inventory levels to cut down costs, a need to promote awareness
among the customers, improve advertising strategies and a need to expand in industrial
segment by forming strategic partnerships to take advantage of the upcoming industrial growth
at national and regional levels.
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4. 1. Company History
SHRI JAIPRAKASH GAUR JI
With a single mined focus to pioneer a myriad of feats in civil engineering ,Shri Jaiprakash Gaur
ji, the founding father of Jaiprakash Associated Ltd. Acquired a diploma in civil engineerig in
1950 from the university of roorkee. After a stint with government of U.P he branched off on his
own, to start as a civil contractor in 1958 with the steadfast determination to contribute in
nation buliding. This has been possible with the active support of his honest colleagues such as
Shri S.K.Jain, Shri N.C. Sharma, Shri G.P. Gaur, Shri P.K Jainanad Ypung Generation Ably Headed
By Shri Manoj Gaur And Shri Sunil K. Sharma. Transforming challenges into opportunities has
been the hallmark of the Jaypee Group, ever since its inception four decades ago.
The JayPee group is a 15,000 crore well diversified infrastructure conglomerate with business
interests in Engineering & Construction, Power, Cement, Real Estate, Hospitality, Expressways,
Sports & Education (not-for-profit).
The Group has always believed in “growth with a human face” and to fulfill its obligations it has
set up Jaiprakash Sewa Sansthan (JSS), a ‘not-for-profit trust’ which primarily serves the
objectives of socio-economic development,reducing the pain and distress in society
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5. For over 4 decades now, Jaypee Group has supported the socio-economic development of the
local environment in which it operates and ensured that the economically and educationally
challenged strata around the work surroundings are also benefited from the Group’s growth by
providing education, medical and other facilities for local development.
The Group also undertakes Comprehensive Rural Development Programme (CRDP) which
covers a wide range of projects such as free medical camps, health check-ups for village school
children, literacy campaigns like Balwadi’s for young boys and girls, safe drinking water supply,
creating huge water reservoirs in different villages, self employment which includes tailoring
classes for women and animal husbandry. Some other important activities undertaken include
the renovation of old temples, other schools and hospital buildings in the adjoining adopted
villages.
Today the group is the 3rd largest cement producer in the country .The groups cement facilities
are located in the Satna Cluster (M.P.), which has one of the highest cement production growth
rates in India. The group produces special blend of Portland Pozzolana Cement under the brand
name ‘Jaypee Cement’ (PPC). Its cement division currently operates modern, computerized
process control cement plants with an aggregate capacity of 22.80 MnTPA. The company is in
the midst of capacity expansion of its cement business in Northern, Southern, Central, Eastern
and Western parts of the country and is slated to be 37.55 MnTPA by FY12 (expected) with
Captive Thermal Power plants totaling 672 MW.
JayPee is the largest Cement producer in the state of Uttar Pradesh. For optimizing cost of
power, 100% of the power requirement of cement plants are being sourced through captive
thermal power plants.(MP-123MW, UP-65 MW, HP-30 MW and Gujrat-85 MW ). Jaypee Cement
being used in the construction of large dams and hydro electric power projects like the Tehri
Dam in Uttarakhand, Dul Hasti and Baglihar projects in J&K, Indra sagar dam in M.P, Teesta-V
project in Sikkim, Baspa-ll, Nathpa Jhakri and Chamera-ll projects in H.P, Tala project in Bhutan,
Karcham-Wangtoo Project in H.P, Sardar Sarovar Project in Gujrat, Omkareshwar Hydro Electric
Project in M.P and Vishnuprayag Project in Uttarakhand. List of prestigious clients include
Reliance Energy, NTPC, NHPC, GAIL, DMRC, IOC, NFL, Indian Railways, DIAL, L&T, Gammon,
HCC, Som Datt Builders. IRCON, UPSBC, Hindalco, GMR, OSEL, RIL to name a few. Awarded with
"National Safety Award" by the national Safety Council of India for developing and
implementing very effective management systems and procedures and attaining very high
performance levels in occupational safety and health.
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6. SUBSIDIARIES
The Jaypee Group operates through its various subsidiaries in different business segments -
Cement and Power Sector.
Jaiprakash Power Ventures Limited (JPVL)
The company with its operational power plants - 300 MW Baspa-II (Himachal Pradesh) and 400
MW Vishnuprayag (Uttarakhand) is India’s largest Private sector Hydropower producer and is
on its way to be an integrated power producer with expansion in Thermal & Power
Transmission.
www.jppowerventures.com
Jaypee Karcham Hydro Corporation Limited (JKHCL)
The Government of Himachal Pradesh again invited the group for the Karcham Wangtoo a 1000
MW project. The group formulated JKHCL for this project. Still under execution, the project is to
commence its operations in the year 2011.
Jaypee Arunachal Power Limited
The company is setting up two hydropower projects - Lower Siang Project (2700 MW) and the
Hirong Project (500 MW) in Joint Venture with the Government of Arunachal Pradesh.
Bina Power Supply Co. Limited
BPSCL, the wholly owned subsidiary of JPVL, is setting up a Coal based Thermal Power Plant of
500 MW (2x250 MW) in the first phase against the total proposed capacity of 1500 MW at Bina,
Distt. Sagar, MP.
Jaypee Power Grid Ltd.(JPL)
JPL has been formed for execution of the transmission system between Wangtoo in Kinnaur
district of Himachal Pradesh & Abdullapur in Yamuna Nagar district of Haryana for evacuation
of 1000 MW power from Karcham Wangtoo HEP in Himachal Pradesh.
www.jaypeepowergrid.com
Bhilai Jaypee Cement Limited (BJCL)
Incorporated in the state of Chhattisgarh as a Joint Venture with Steel Authority of India Ltd.
(SAIL). The said company is to produce a 2.2 MTPA split-located Cement Plant at Bhilai in the
State of Chattisgarh and at Babupur, Satna in the State of Madhya Pradesh.
www.bjcl.co.in
Gujarat Jaypee Cement & Infrastructure Limited (GJCIL)
The Group has signed an Agreement with Gujarat Mineral Development Corporation Limited
(GMDCL) for setting up of a 2.4 MTPA capacity cement manufacturing plant with captive power
station and captive Jetty in district Kutch of Gujarat.
Bokaro Jaypee Cement Limited (BOJCL)
BOJCL, the second joint venture between the Company and SAIL with management control
vested in the Company, is incorporated to set up a 2.1 MTPA capacity cement plant at Bokaro in
Jharkhand.
Madhya Pradesh Jaypee Minerals Limited (MPJML)
A Joint Venture company between JAL and the Madhya Pradesh State Mining Corporation
Limited (MPSMCL) to develop the Amelia (North) Coal block.
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7. Jaypee Infratech Limited (JIL)
A subsidiary of Jaiprakash Associates Ltd. which has undertaken the implementation of
prestigious Yamuna Expressway Project comprising of 165 KM, 6 Lane Access Controlled
Expressway connecting Noida with Agra.
www.jaypeeinfratech.com
Jaypee Ganga Infrastructure Corporation Limited (JGICL)
JGICL a wholly owned subsidiary of the Company for implementation of the prestigious 1047
km, long 8-lane Access-Controlled Expressway connecting Greater Noida with Ghazipur- Ballia.
Himalayan Expressway Ltd.
The Company will undertake the construction of Zirakpur-Parwanoo Highway connecting
Punjab, Haryana & Himachal Pradesh on BOT basis. The total length of the highway would be
28.690 kms.
Jaypee Sports International Ltd.
Jaypee Sports International Ltd. is incorporated for developing a Greenfield state-of-the-art
Sports Complex including Car Race track for motor sports with related integrated support
infrastructure including townships, cricket stadium, go karting track and auxiliary facilities.
www.jaypeesports.com
Sangam Power Generation Co. Ltd. (SPGCL) & Prayagraj Power Generation Co. Ltd. (PPGCL).
Two super critical technology boiler based Thermal Power Projects are being implemented by
Jaiprakash Power Ventures Ltd. (JPVL), a subsidiary of your Company. 1980 MW Karchana
Thermal Power Project in Tehsil Karchana of Allahabad District is being implemented by
Sangam Power Generation Company Ltd. (SPGCL) and 3300 MW Bara Thermal Power Project in
Tehsil Bara of Allahabad Distt is being implemented by Prayagraj Power Generation Company
Ltd. (PPGCL).
Jaypee Agra Vikas Ltd. (JAVL)
Jaypee Agra Vikas Limited is incorporated as a Special Purpose Vehicle to undertake the work
for development of section of Agra Inner Ring Road, with a length of about 20.5 Km
BOARD OF DIRECTORS
The Board of Directors of the company have envisioned the organisation to new heights. The
company is well managed under the foray of these individuals:
Shri Manoj Gaur, Executive Chairman & CEO Dr. J N Gupta
Shri Sunil Kumar Sharma, Executive Vice
Shri M S Srivastava
Chairman
Shri S K Jain, Vice Chairman Shri Sunny Gaur, Managing Director (Cement)
Shri R N Bhardwaj Shri Pankaj Gaur, Jt. Managing Director (Constn.)
Shri A K Sahoo (LIC Nominee) Shri R K Singh (Whole-time)
Shri B K Goswami Shri Ranvijay Singh (Whole-time)
Shri B K Taparia Shri S.D. Nailwal (Whole-time)
Dr. B Samal Shri Rahul Kumar (Whole-time Director & CFO)
Shri Viney Kumar (IDBI Nominee) Shri V K Chopra
Shri S C Bhargava Shri S C Gupta
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8. PRESENCE ACROSS INDIA
With its solitary Mission is to achieve Excellence in every sector that the group operate in - be it
Engineering & Construction, Cement, Real Estate or Consultancy, the Jaypee Group has marked
its presence all over the nation overtaking the obstacles in path of achievement . The group has
not only obtained sustainable development but also enhanced the shareholders value and
fulfilled obligations towards building a better India.
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9. ACHIEVEMENTS FOR THE YEAR 2010
Jaypee Rewa Cement Plant and Jaype Bela Cement Plant in Madhya Pradesh of the Group
have been awarded with renowned and most prestigious “SWORD OF HONOUR” award by
the British Safety Council, UK. This is a well acclaimed and celebrated international award in
the field of Health and Safety management system. 3.00 MnTPA Rewa and 2.40 MnTPA Bela
are the only cement plants to be bestowed with this honour in India.(For Details)
The garbage processing plant of Jaiprakash Associates Ltd. located in Dadumajra, Chandigarh
was awarded “Excellence for the best solid waste management plant in the country” by
Confederation of Indian Industry (CII).
"Lifetime Achievement Award" being conferred to Shri Jaiprakash Gaur, Founder Chairman
by Merchants’ Chamber of Uttar Pradesh, Kanpur for creating new milestones in
Infrastructure development and his achievement in Corporate Social Responsibility for the
year 2010.
“Infrastructure Leader of the Year ” award being conferred to Shri Jaiprakash Gaur, Founder
Chairman by Shri Kamal Nath, the Union Minister of Road Transport and Highways during
the Essar Steel Infrastructure Excellence Awards 2010 in association with CNBC TV18.
400 MW Vishnuprayag Hydropower Project of Jaiprakash Power Ventures Ltd (JPVL) was
awarded 1st Prize in the category “Energy & Power’’ by the Essar Steel Infrastructure
Excellence Awards 2010 in association with CNBC TV18.
300 MW Baspa – II Hydropower project being awarded with “Silver Shield” by Shri Sushil
Kumar Shinde, Union Minister of Power along with Shri Bharatsinh Solanki, Union Minister of
State for Power in the prestigious National Awards for Meritorious Performance in Power
Sector by the Ministry of Power for 2008-09.
SWORD OF HONOUR
Based on the OH&S performance and 5 Star Rating, both the units, Jaypee Rewa Plant and Jaypee Bela Plant, have been
awarded with the most prestigious and renowned Sword of Honour by British Safety Council, UK. The Sword of Honour is
the most prestigious international health and safety honour that a company can receive, and it is designed to encourage
and reward organisations that abide to best practices. Each year only 40 organisations around the world are awarded with
the Sword of Honour Award.
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10. CERTIFICATIONS
ISO 9001 : 2008
Jaiprakash Associates Ltd.is ISO 9001 : 2008 certified company, Accredited by UKAS and
NABCB. The scope of certification covers processes for Business Development, for
Infrastructure projects and Civil and Hydro – Mechanical works of Hydro – Electric Projects,
Design and Engineering for Civil and Hydro Mechanical works of Hydro – Electric Projects
facilitating and supporting execution of Projects by providing the required resources, Contract
Management and interaction with the clients. These processes are monitored, measured and
analyzed for identifying needs for continual improvement.
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11. Jaypee Rewa Plant, Jaypeenagar ( Unit of Jaiprakash Associates Limited) been awarded Five Star
Rating by the British Safety Council, London, U.K. for Health and Safety Management System.
Jaypee Bela Plant, Jaypeepuram (Unit of Jaiprakash Associates Limited) been awarded Five Star
Rating by the British Safety Council, London,U.K.for Health and Safety Management System.
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12. 2. Industry Structure
Today, India is the world’s largest, non-Chinese cement market and has seen strong growth
over the years. Today, India is home to several large cement manufacturers that continue
making their way to become part of the global production league tables and the trajectory is
widely expected to continue.
But, the history of the cement industry in India dates back to the 1889 when a Kolkata-
based company started manufacturing cement from Argillaceous. But the industry started
getting the organized shape in the early 1900s. In 1914, India Cement Company Ltd was
established in Porbandar with a capacity of 10,000 tons and production of 1000 installed.
The World War I gave the first initial thrust to the cement industry in India and the industry
started growing at a fast rate in terms of production, manufacturing units, and installed
capacity. This stage was referred to as the Nascent Stage of Indian Cement Company. In
1927, Concrete Association of India was set up to create public awareness on the utility of
cement as well as to propagate cement consumption.
The cement industry in India saw the price and distribution control system in the year
1956, established to ensure fair price model for consumers as well as manufacturers. Later
in 1977, government authorized new manufacturing units (as well as existing units going
for capacity enhancement) to put a higher price tag for their products. A couple of years
later, government introduced a three-tier pricing system with different pricing on cement
produced in high, medium and low cost plants.
Cement Company, in any country, plays a major role in the growth of the nation. Cement
industry in India was under full control and supervision of the government. However, it got
relief at a large extent after the economic reform. But government interference, especially
in the pricing, is still evident in India. In spite of being the second largest cement producer
in the world, India falls in the list of lowest per capita consumption of cement with 125 kg.
The reason behind this is the poor rural people who mostly live in mud huts and cannot
afford to have the commodity. Despite the fact, the demand and supply of cement in India
has grown up. In a fast developing economy like India, there is always large possibility of
expansion of cement industry.
Total cement production in world, in year 2010 was 3325 million tonnes³, with China being
the leading producer followed by India.
• China: 1800 million metric tonnes (54.13 %)
• India: 220 million metric tonnes (6.61%)
• US: 63.5 million metric tonnes (1.9%)
• Other countries: 1241.5 million metric tonnes (37.33%)
Cement production worldwide
China
India
U.S
Others
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13. Cement Production & Dispatches
Indian Cement industry is comprised of 148 large cement plants with around 46 member
companies and more than 300 mini plants. The installed capacity of these large cement plants is
estimated to be 219.17 million tonne during 2009-10 (as on March 2009) where majority of the
production of cement (94%) in the country is by large plants.
There are 95 large cement plants with capacity of of million tonnes and above and around 1,
40,000 manpower is employed under these. Also, there are 365 mini and white cement plants
with an installed capacity of 11.10 million tonne
2010-
Dec- 2009-10
Description Jan-11 Jan-10 11
10
(Apr-Jan)
Cement
14.52 13.59 14.65 136.51 130.85
Production
Cement
14.47 13.60 14.59 135.56 130.09
Despatches
Growth Perspective
In general, the optimism is expected to continue over the coming year. 50 percent of the sample
expect an improvement, 40 percent expect it to be much the same and the balance expect a
small decline in performance.
Equipment manufacturing companies were more optimistic than the rest of the sector, perhaps
in part as they were reflecting the optimism of the recent and sustained growth in capital
expenditure. Overall 83 percent of equipment vendors believed that future performance would
be 'much' or 'somewhat' better in the coming year. In turn, 57 percent of analysts held this view
(and a further 30 percent expected performance to be 'much the same’). 45 percent of
manufacturers and 37 percent of cement traders expected the next 12 months to be 'somewhat'
or 'much' better. This response may reflect position in the production chain with cement traders
being closer to the consumer market and identifying potential changes in demand while
equipment suppliers are responding to existing demand for additional capital from the
manufacturers.
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14. One area where there is fewer consensuses was the future trend for input costs. Around 43
percent believed this would change for the better, 33 percent that it would stay the same and 24
percent that input costs would increase.
Contribution by states
Among the states, Maharashtra has the highest share in consumption at 12.18 % followed by
Uttar Pradesh.
In production terms, Andhra Pradesh is leading with 14.72% of total production followed by
Rajasthan.
Major brands
Since cement is a high bulk and low value commodity, competition is also localized because the
cost of transportation of cement to distant markets often results in the product being
uncompetitive in those markets.
There are a number of players prevailing in the cement industry in India. However, there are
around 20 big names that account for more than 70% of the total cement production in India.
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15. Few of which are as follows:
1. ACC
2. Gujarat Ambuja
3. Jaypee Group
4. Ultratech
5. Grasim
6. India Cements
7. JK Group
Mergers and Recent Investments
Gujarat Ambuja taking a stake of 14 per cent in ACC, and taking over DLF Cements and
Modi Cement.
ACC taking over IDCOL.
India Cement taking over Raasi Cement and Sri Vishnu Cement.
Grasim's acquisition of the cement business of L&T.
Swiss cement major Holcim has picked up 14.8 per cent of the promoters' stake in
Gujarat Ambuja Cements (GACL).
Holcim's acquisition has led to the emergence of two major groups in the Indian cement
industry, the Holcim-ACC-Gujarat Ambuja Cements combine and the Aditya Birla group
through Grasim Industries and Ultratech Cement.
Lafarge, the French cement major has acquired the cement plants of Raymond and
TiscoRama Cement.
Overall, the industry remains optimistic about the immediate future and is aware of the
potential impact of more rigorous environmental regulations in the coming years. Broadly,
these opinions are shared across the geographical and functional spread of the industry. The
main differences are expectations of cost increases for the large part of the industry based in
Western India and that equipment manufactures remain the most optimistic about growth
prospects in the coming year.
3. Environment
The chief competitors to Jaypee Cement are – UltraTech Cement, ACC Cement, Binani
Cement and Prism Cement. In order to understand the environment, we need to look at
each of the Competitors.
UltraTech Cement: UltraTech Cement Limited has an annual capacity of 52 million
tonnes. It manufactures and markets Ordinary Portland Cement, Portland Blast Furnace
Slag Cement and Portland Pozzalana Cement. It also manufactures ready mix concrete
(RMC). The company has 11 integrated plants, one white cement plant, one clinkerisation
plant in UAE, 15 grinding units – 11 in India, 2 in UAE, one in Bahrain and Bangladesh
each and five terminals — four in India and one in Sri Lanka.
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16. UltraTech Cement is the country’s largest exporter of cement clinker. The export markets
span countries around the Indian Ocean, Africa, Europe and the Middle East. UltraTech's
subsidiaries are Dakshin Cements Limited, Harish Cements Limited, UltraTech Ceylinco (P)
Limited and UltraTech Cement Middle East Investments Limited.
ACC Cement: ACC Limited is India’s foremost manufacturer of cement and ready mix
concrete with a countrywide network of factories and marketing offices. Established in
1936, ACC has been a pioneer and trend-setter in cement and concrete technology. ACC’s
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.
Among the first companies in India to include commitment to environment protection as a
corporate objective, ACC has won several prizes and accolades for environment friendly
measures taken at its plants and mines. The company has also been felicitated for its acts of
good corporate citizenship.
Binani Cement: Binani Cement Limited is the flagship subsidiary of Binani Industries
Limited (BIL), representing the Braj Binani Group. The cement business started operations
in 1997, in Sirohi District, Rajasthan with a 1.65 MTPA integrated cement facility and a 25
MW captive power plant with technological support from F. L. Smidth, Denmark and Larsen
& Toubro Ltd. The capacity was raised to 2.25 MTPA in 2005 through advanced in-house
R&D and de-bottlenecking and the Company was also certified to ISO 9001, ISO 14001 and
OHSAS 18001 within a short span from commencement of operation. This is an
achievement that clearly illustrates the management's commitment to quality, efficiency,
environment, health and safety. In 2008, a split-grinding unit at Neem Ka Thana was
commissioned, boosting the capacity in India to 6.25 MTPA.
Today, Binani Cement has established itself as one of the top companies in the industry in
terms of efficiency and performance. What truly sets Binani Cement apart is its clear focus
on the core attributes of quality, strength and reliability of the end product. These have paid
rich dividends and seen brand 'Binani' growing in prominence and stature, poised to
capture increasing market share globally.
Prism Cement: Prism Cement Limited is an ISO 9001: 2008, ISO 14001: 2004, OHSAS
18001: 2007 & SA 8000 : 2008 Certified Company. It operates one of the largest single kiln
cement plants in the country at Satna, Madhya Pradesh. Equipped with state-of-the-art
machinery and technical support from F.L Smidth & Co A.S Denmark, the world leaders in
cement technology, Prism Cement has successfully created a niche for itself in the Indian
cement industry.
The Company is managed by a focused Board comprising of eminent experts from diverse
fields ably supported by a professional management team. The Management team ensures
high levels of transparency, accountability and equity in all facets of the company’s
operations.
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17. 4. Products
Jaypee produces a wide variety of cements, which are specifically designed to cater to the
customer’s requirements for different types of cements in each of its markets. All the brands,
which the Company produces, are so evolved in their characteristics and properties that they
will surpass BIS Standards. For each brand, the relevant BIS standards are mentioned in
enclosed table along with a comparison with the BIS requirement.
The state-of-the-art cement plants operated by the Jaypee Group are equipped with the most
modern technology from the globally leading technology providers. Extensive Instrumentation
& fully automatic and computerized process control system, custom designed Quality Control
software like QSO Expert and CADES in the Mines, Cross Belt Expert Analyser using the Prompt
Gamma Neutron Activation Analysis - for the first time in India, X-Ray Fluorescence and X-Ray
Diffraction analysers and optical microscope, enable production of cement of the highest quality
consistently on a sustained basis. Jaypee Rewa Plant Quality control laboratory is accredited
laboratory from National Accreditation Board for Calibration & Testing Laboratories, for
chemical and mechanical Cement testing.
All brands are marketed in attractive HDPE bags, containing 50 Kgs of quality cement from
Jaypee. Bags are identified with a conspicuous Jaypee Logo, which also over the years has come
to be regarded as a “Hallmark” of quality.
Jaypee produces & markets both Portland Pozzolana Cement (PPC) & all grades of Ordinary
Portland Cement (OPC). A brief introduction of each brand is enumerated as below:-
JAYPEE CEMENT (PPC)
Jaypee Cement (PPC) is a market leader among all blended/composite cements in the markets
of U.P, Bihar, M.P., Punjab, Haryana, Delhi & Nepal. Its unique design and blend, with high
strength clinker and superior quality flyash has made it the popular cement for construction of
large number of strong and durable structures in these states.
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18. Qualities of Jaypee Cement PPC
Unmatched characteristics of Jaypee Cement (PPC) which form the basis of sound & durable
racteristics
construction are:
Better workability due to spherical shape of fly ash particles and better slump retention.
Better palpability – provides more cohesive concrete and mortar.
Superfine particles provide great finish to the structure.
Provides un-segregated concrete of better integrity.
segregated
Low heat of hydration.
Reduced shrinkage and swelling.
Better pore refinement, reduced permeability.
Better resistance to chloride and sulphate attack
Better resistance to alkali-silica reaction.
silica
Resistance to corrosive attack on steel reinforcement.
Reduced lime leaching.
High compressive strength.
High modulus of elasticity especially at later ages.
Improved bondage of concrete to steel.
Long term strength gain.
USAGE:-
Jaypee Cement (PPC) is being used for a number of applications like housing, commercial
complexes, roads, wells, canals, dams etc. which establishes Jaypee Cement (PPC) as the
preferred choice of the discerning customer. It is particularly well suited for the tropical climatic
conditions of India.
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19. ORDINARY PORTLAND CEMENT
43 Grade Conforming to IS: 8112-1989
53 Grade Conforming to IS: 12269-1987
53 S Grade Conforming to IRST-40(53 S)
Jaypee Cement (OPC-43 Grade)
Jaypee Cement (OPC-43 Grade) is produced from enriched limestone most suited to make
high quality clinker, which on grinding gives a cement with characteristics surpassing those
specified in IS: 8112 1989. Jaypee Cement (OPC-43 Grade) is available in 50 Kgs HDPE bags
of a distinctive design and cover. Jaypee Cement (OPC-43 Grade), has emerged as the top
choice of Engineers and Engineering Companies engaged in construction of mega projects –
such as National Highways, Bridges, Transmission lines, power plants, Industrial and
Residential structures.
Typical Chemical and Physical Properties of Jaypee Cement (OPC-43 Grade)
Requirement of
Particulars Typical Range
IS: 8112 - 1989
CHEMICAL PROPERTIES
1 Lime Saturation Factor (LSF) 0.88-0.90 0.66 To 1.02
2 Alumina to that of Iron oxide Ratio % (A/F) 1.40-1.60 0.66 Min.
3 In soluble Residue (% by mass) 1.20-1.60 3.00 Max.
4 Magnesium oxide (% by mass) 2.50-3.20 6.00 Max.
5 Sulphuric Anhydride (% by mass) 1.60-1.80 3.00 Max.
6 Total Loss On Ignition (% by mass) 1.20-1.60 5.00 Max.
0.10 Max.(For N.C.)*
7 Total Chloride ( % by mass) 0.010-0.014
0.05 Max.(For P.C.)*
PHYSICAL PROPERTIES
1 Fineness (M2/Kg) 280-300 225 Min.
Group 7
20. 2 Setting Time (Minutes)
Initial 120-140 30 Min.
Final 160-180 600 Max.
3 Expansion
Le. Chatelier (mm) 1.00-2.00 10.00 Max.
Auto clave (%) 0.10-0.20 0.8 Max.
4 Compressive Strength (MPa)
3 Days 32.0-34.0 23 Min.
7 Days 42.0-44.0 33 Min.
28 Days 52.0-54.0 43 in.
Jaypee Cement (OPC-53 Grade)
One of the very few cement manufacturers having the potential to manufacture this special
grade of super fine cement which due to its enhanced quality and performance parameters
has been approved by the RDSO of Indian Railways for manufacture of “RAILWAY
SLEEPERS”.
Jaypee Cement (OPC-53 S Grade) is also used in heavily loaded or pre stressed structures,
which are subjected to high dynamic loads due to rapidly moving volumes, be it a train
passing on the railway sleepers or a great volume of water moving at high speed to
generate electricity in a penstock
Typical Chemical and Physical Properties of Jaypee Cement (OPC-53 Grade)
Requirement of
Particulars Typical Range
IS: 12269 - 1987
CHEMICAL PROPERTIES
1 Lime Saturation Factor (LSF) 0.90-0.92 0.66 To 1.02
2 Alumina to that of Iron oxide Ratio % (A/F) 1.20-1.40 0.66 Min.
Group 7
21. 3 In soluble Residue (% by mass) 1.0-1.20 3.00 Max.
4 Magnesium oxide (% by mass) 3.0-3.50 6.00 Max.
5 Sulphuric Anhydride (% by mass) 1.80-2.00 3.00 Max.
6 Total Loss On Ignition (% by mass) 1.0-1.20 4.00 Max.
0.10 Max.(For N.C.)*
7 Total Chloride ( % by mass) 0.010-0.014
0.05 Max.(For P.C.)*
PHYSICAL PROPERTIES
1 Fineness (M2/Kg) 320-340 225 Min.
2 Setting Time (Minutes)
Initial 110-120 30 Min.
Final 150-180 600 Max.
3 Expansion
Le. Chatelier (mm) 1.00-2.00 10.00 Max.
Auto clave (%) 0.10-0.15 0.8 Max.
4 Compressive Strength (MPa)
3 Days 40.0-42.0 27 Min.
7 Days 49.0-50.0 37 Min.
28 Days 60.0-62.0 53 Min.
Group 7
22. 5. Price
In Cement industry price is used only as a differentiator between the various Competitors
brands. The prices of different brands in the same segment remain more or less similar, with
just a difference of 2-5 rupee per bag. Sometimes price also varies with the order placed by the
customer i.e order placed by him is in trade or in non- trade. Pricing decisions in the cement
industry largely depend on the price of the inputs like clinker, other raw materials, excise
duties and taxes and the general operating profits. Generally increase or decrease of prices is
affected across all brands in the market. Most of the Cement companies offer a 5-10% margin to
the dealer and particular amount of money against per Mt. of the sales to the Sales Organiser for
promoting the sales in his region. Due to internal competition, the dealers pass on this
advantage to the customers by reducing their own margins to 2- 3%. This is a cause of concern
for the cement companies because they have to keep a constant check on the prices offered in
the market. The dealers offer more of discounts and the companies are not able to firm up the
prices. Cement companies offer a lot of discounts like cash discounts, volume discounts,
seasonal discounts, foreign tours and allowances to dealers for promoting healthy sales. The
dealers take advantage of these discounts to gather more business.
As above Jaypee produces a wide variety of cements, which are specifically designed to cater to
the customer’s requirements for different types of cements in each of its markets. All the brands,
which the Company produces, are so evolved in their characteristics and properties that they
will surpass BIS Standards.
Thus basics prices for different brands of JAYPEE CEMENT from the dealer of Madhya Pradesh
(Indore) are given below:
JAYPEE CEMENT (PPC) PPC stands for PORTLAND POZZOLANA CEMENT
Price of Jaypee Cement (PPC) contains 50 kgs is INR 300 per bag.
Jaypee Cement (OPC-43 Grade) Jaypee Cement (OPC-53 Grade)
OPC stands for Ordinary Portland Cement
Price of Jaypee Cement (OPC-43 Grade) INR 290 Per bag
contains 50 kgs is INR 285 per bag.
Group 7
23. 6. Distribution Network
Jaypee cement has around 156 cement dumps and all are networked using State-of-the-art
TDM/TDMA VSATs along with a dedicated hub to provide 24x7 connectivity between the plants
and all the 156 points of cement distribution in order to ensure “track – the – truck” initiative
and provide seamless integration. This initiative is the first of its kind in the cement industry in
India.
JAL has set up new capacities in Northern, Central, Western & Southern parts of the country and
is targeting a capacity of 26 MTPA in 2010 and 32.80 MTPA by 2011, along with Captive
Thermal Power Plants (CPPs) totalling 375 MW.
Now the Group have 12 Integrated Cement Plants supported by 375 MW of captive thermal
power, 9 split location plants, 11 Railway sidings and a jetty, giving the Group a pan-India
presence in the cement sector.
Geographical Spread of the Jaypee Cement
Group 7
28. Distribution Channel
Companies invariably hire c & f agents or transport cements to own or government warehouses
either via roadway or railways. Incase of exports, cement reaches the nearest port via roadways
or railways and is then transferred to the importing country. Domestically, from c & f 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, transportation of goods and final
delivery. Distributor network in cement industry is highly dominating and companies are
compelled to hire as they do not really have that rapport and touch with the end consumer of
their product. Apart, from this, the distributors have storage facilities as well which help control
well in the entire supply chain as they are the ones who bring orders and therefore are directly
responsible for the business that a manufacturer would do.
Manufacturing Unit
Warehouse
Dealers/Distributor
Sub Dealers
Retailers
Group 7
29. 7. Promotion
Jaypee Cement’s advertising has created brand awareness, highlighted what the brand has to
offer and has consistently brought all of it top-of-the-mind for the customer. But the outreach
effort does not end there. JayPee Cement has recognized the importance of communicating to
and involving key players who influence the final brand choice. These include channel partners,
contractors and masons, on whom Jaypee cement focuses by initiating and developing
innovative activities and promotions. This helps build the Jaypee cement family so that
customers get a high degree of personalized service and professional guidance to facilitate their
final decision.
Our Motto “Work for Quality, Safety, Health & Environment”
Jaypee produces a wide variety of cements, which are specifically designed to cater to the
customer’s requirements for different types of cements in each of its markets.
All brands are marketed in attractive HDPE bags, containing 50 Kgs of quality cement from
Jaypee. Bags are identified with a conspicuous Jaypee Logo, which also over the years has come
to be regarded as a “Hallmark” of quality.
Group 7
30. Advertisement
Jay pee Cement launches a new campaign to redefine the concept of solidity and trust
with an emotional connect that the Jaypee Group has come to be known for “Andar se
onal
Solid” as the tagline to consolidate the brand’s core values of Trust, Resilience & Stability
and the brand’s core promise of superior strength, durability and withstanding the test
of time.
Campaign would reinforce and further build on the brand’s virtues of strength, endurance
and fortitude – values that shall propel Jaypee Cement to a capacity of 25 million tonnes
by 2010 and then 35 million tonnes per annum by 2011
Jaypee Cement is India’s 3rd largest cement player and To communicate the company’s
leadership stature and premium positioning, an aggressive multimedia campaign has been
drawn up
New Delhi, April 14, 2009
2009:
“ The Master Blaster, Sachin Tendulkar To Endorse Ja ypee Cement”
Jaypee
Group 7
31. Jaypee Cement – India’s leading cement brand, today launched its new brand campaign and
announced its association with the Master Blaster, Sachin Tendulkar. The new campaign looks
to redefine the concept of solidity and trust with an emotional connect that has come to be
associated with all Jaypee Group campaigns.
“JAYPEE CEMENT ONE OF ASSOCIATE COMPANIES OF JAYPEE GROUP, TODAY
ENDORSED FAMOUS LYCRIST JAVED AKHTAR AS BRAND AMBASSADOR
2. NEWSPAPER PRINT
Group 7
32. 3. PRESS RELEASES
1. Jaiprakash Associates to set up cement plant in Assam.
Total project cost is Rs 1050 crore 2.00 MMTPA plant in JV with Assam Mineral
Development Corporation Limited
New Delhi; July 31, 2009; Jaiprakash Associates Ltd (JAL), the flagship company of the well
diversified industrial conglomerate Jaypee Group having interests in the fields of Civil
Engineering, Cement, Power, Real Estate & Hospitality, today signed an MOU for setting up a 2.0
million tonnes per annum capacity cement plant in joint venture with Assam Mineral
Development Corporation Limited (AMDC). The joint venture company, to be incorporated
shortly, shall set up cement project at Umrangshu District Halflong North Cachhar Hills in
Assam based on the limestone reserves of 157 Mn Tonne in the region.
2. Hon’ble CM of Gujarat, Shri Narendra Modi inaugurates
Jaiprakash Associates cemet plant in Gujarat
JAL invested Rs 1500 crore in the cement plant having capacity of 2.4 MTPA
JAL’s first cement plant in Gujarat
New Delhi/Sewagram (Kutch, Gujarat); December 02, 2009: The Honourable Chief
Minister of Gujarat, Shri. Narendra Modi today dedicated Jaiprakash Associates’ 2.4 million
tonnes per annum capacity cement plant in Sewagram, Kutch, Gujarat in the presence of other
dignitaries, to the nation.
3. Jaypee Group to Invest Rs 33,000 Crores in Gujarat
New Delhi, January 15: Jaiprakash Associates Ltd (JAL) has committed to invest
Rs 33,000 crore more in Gujarat over the next 3 to 5 years.
The company signed 6 MoUs at the just concluded Vibrant Gujarat investors meet. The plans
include setting up of an Alumina plant (Rs 14,000 crores), 1 thermal power plant and grinding
unit (Rs 6000 crores), development and mining of a coal block (Rs 8000 crores), development of
2 jetties (Rs 1000 crore), and expansion of cement production (Rs 4000 crores).
All these projects are slated for Gujarat’s Kutch region where the company has already invested
over Rs 6000 crores in a Greenfield cement plant and creating health and educational facilities
for the local people. The plant is of 2.4 million tones per annum capacity, which will be
enhanced to 4.8 MTPA in a few months time.
Expressing his pleasure over the signing of the MoUs, Jaypee Group’s Executive Chairman, Mr
Manoj Gaur, said “These MoUs represent our continuing commitment to the development of
Gujarat and creating thousands of new employment opportunities for the people.”
Group 7
33. 8. Customer Survey Analysis:
The objective of this survey is to understand the consumer’s decision making process. We
approached few customers and analyzed their purchasing behaviour. This is a very sample
small size and covers customers in the Gurdaspur District only. We cannot vouch that the
responses of customers all over the country will be the same. As we found that customer had
little awareness and say in the final purchase of a particular product, we met about ten dealers
to understand the customers’ perceived behaviour and their influence on the final decision
making by the customer. The generic buying process of a consumer is given below. However, all
these stages do not occur in every purchase as the customer skips some of them.
The buying process starts with need or problem recognition. At this stage, the customer
recognizes a problem or need and in this case for example: I have to construct/repair the house
so I need to buy some cement.
An “aroused” customer then needs to decide how much information (if any) is required.
If the need is strong and there is a product or service that meets the need close to hand, then a
purchase decision is likely to be made there and then. If there is a deficiency in information, the
customer is likely to start a process of information gathering.
He/she can gather information from several sources:
• Personal sources: family, friends, neighbours etc
• Commercial sources: advertising; salespeople; retailers; dealers
• Public sources: newspapers, radio, television, consumer organizations; specialist magazines
• Experiential sources: handling, examining, using the product
Group 7
34. We found that the Personal sources play the major role in the customer decision making
process. The friends were found to be the most dominant.
Decision-Influencers
25
20
15
10 No.of customers
5
0
Family Friends Neighbours
Public sources also play a significant role in “pull” strategy for the consumer. Of the public
for
sources, Television plays the most influential role as is shown below. Many customers
identified, Television as the most effective media in influencing buyer’s decisions for the
purchase of Cement.. It scores much higher than t other audio-visual sources of media
the
Media Advantage
30
25
20
15
No. of Customers
10
5
0
Tv Hoarding News Papers
Group 7
35. Few others factors that reflect Customer Purchase behaviour are as follows:
BRAND APPEAL:
When customers were surveyed for naming any 4 brands in terms of quality ,price and trust in
the cement industry that first came to their mind, majority of the respondents gave ACC as their
first preferred choice as its the oldest brand and people has trust in it. On the other hand they
choose Jaypee as second choice in terms of respect but fi in quality.
first
30
25
20
quality
15
trust
10
price
5
0
Ambuja Grasim JayPee Acc
Dealer questionnaire analysis:
Since dealers turned out to be the major influencers in the decision making process, we
questioned all the Asian Paints dealers in Bhubaneshwar. The objective was to understand the
dealers perception of Asian Paints and the competing brands. These are the responses from the
dealers.
Market Pull: On being asked, how they decide which brand to sell, most of them replied
that customer demand for the brand was the major deciding factor. Some o them were also
of
induced by profit margins and incentives.
Prevalence of the brand: Most dealers responded that Jaypee cement will be the most
prevalent brand because its brand awareness is the high and the product is appreciated alot
because of its quality.
Incentives given to dealers: Incentives include cash discounts on bulk buys, foreign trips
and expensive gifts on surpassing sales targets. This is indicative of the companies aggressive
trade promotion.
Who is the influencer of the customer decision: It was observed that customers are
mostly influenced by Friends. This shows that the customers are not informed themselves and
depend more or less on advice from the above. One more observation was that many of the
customers were brand loyal and therefore did not switch brands.
Dealer feedback: The dealer is not taken into consideration for marketing decisions.
Since the intermediaries play a very vital role in the value chain of Cement the company
should devise methods to map the views of the dealers
ise
Group 7
36. 9. Suggestions
• Large number of players in cement industry makes it more competitive for JAYPEE
CEMENT to carefully price its product and at the same time satisfy its dealers and
customers.
• The emergence of small players in this market may increase the competition and start
the malpractices, and heavy discounts to retailers. They can also influence many
retailers by giving better profit margin, and other Benefits.
• People are opting for more stable structures and intensive use of cement is taking place,
even government is spending heavily on infrastructure projects. Thus, this is the right
time to fully tap these markets.
• Foreign direct investment in infrastructure sector going to increase in coming years,
which will increase the demand of cement. Therefore JAYPEE CEMENT should try to
create a goodwill in the market so that they can attract more customers
Group 7
37. Appendix
Dealers Questionnaire
Personal data:
1. Name (Optional) :___________________
2. Age :
i) Below 35yrs ii) 35-45yrs iii) Above 45yrs
3. Educational Level :
i)Below Pre degree ii)UG/Diploma iii)PG
4. Nature of the Shop
o Cement Outlet
o Cement Cum Hardware
o Cement / Building materials
5. No of Years in Business?
o Less than 5 years
o 6 – 10 years
o 11 – 15 years
o More than 15 years
6. What are the grades you are dealing with?
o 43 grade cement
o 53 grade cement
o Blended cement
o All grade cement
7. Which grade is more Saleable?
o 43 grade cement
o 53 grade cement
o Blended cement
8. Which influence you to buy this product?
o Quality
o Price
o Brand Image
Group 7
38. 9. How much quantity of cement you sell per month?
o 200 – 400 tons
o 400 – 600 tons
o 600 – 800 tons
o More than 800 tons
10. How often you are getting the supply of product?
o Daily
o Once in a week
o Once in 15 days
o Once in a month
11. Reason for selling cement?
o Customer Acceptance
o Increased profitability
o Availability of product
12. What is the mode of payment?
o Cash
o Cheque
13. Does the company provide any Incentive Scheme?
o Yes
o No
14. If yes then mention the scheme? ________________
15. Opinion about the company’s Incentive Scheme?
o Very Good
o Good
o Satisfactory
o Poor
16. Comparing to other brand cements how is the price of Jaypee cement?
o High
o Normal
o Low
17. Which type of customer buying the product constantly?
o Retailers & Contractors
o Retailers & Engineers
Group 7
39. 18. Do Consumer generally request cement?
o Always
o Frequently
o Sometimes
o Never
19. Does the company give any advertisement for the product if yes through what
medium?
o TV
o Radio
o Newspaper
o Magazines
o Others ___________
20. Does the company give information about the different grades and their
quality standards periodically?
o Yes
o No
21. If yes through what medium?
o Letters
o E mail
o Phone
22. Apart from the company did you take any steps to increase the sales?
o Manson meeting
o Discount
o Credit Facility
23. Whether the company conduct dealers meet regularly?
o Yes
o No
24. If yes specify the frequency in which the meets were conducted?
o Once in a year
o Twice in a year
o More than twice
25. Opinion on the timely distribution system?
o On time o Not on time
Group 7
40. Customer Questionnaire
1. Name (Optional) :___________________
2. Educational Level :
i)Below Pre degree ii)UG/Diploma iii)PG
3. Occupation :__________
4. How you do you know about this brand?
o Advertisement
o Dealers
o Experience
o Personal sources
5. What influence you to buy this product?
o Quality
o Price
o Brand Image
o Availability
6. Comparing to other cement brands how is the price of Jaypee cement?
o High
o Normal
o Low
7. Have you ever used Jaypee Cement?
o Yes
o No
8. If yes, then Opinion about the product?
o Very Good
o Good
o Satisfactory
o Poor
9. Do you think Jaypee cement need more advertisement?
o Yes
o No
10. When you think of cements what are the brand names that come to your mind?
1................... 2....................... 3......................... 4.........................
Group 7
41. Bibliography
http://jalindia.com/index.htm
www.digisoft.in/demo/jaypee
en.wikipedia.org/wiki/Jaypee
India in Business, ITP division, Ministry of external affairs, Govt of India
RNCOS, Indian Cement Industry, Forecast to 2012.
http://business.mapsofindia.com/cement/
http://www.cemweek.com
www.alacra.com
www.bseindia.com
www.moneycontrol.com
http://www.calmac.org/
www.researchandmarkets.com
Group 7