Summary of 2nd Pilot Movement Patna to Bhagalpur / ULTRATECH
Ultratech Profitability L.N. Patna
-
Upload
mohit-kumar -
Category
Documents
-
view
226 -
download
0
Transcript of Ultratech Profitability L.N. Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
1/73
A Brief Study of
Profitability in Cement Industries
with special reference toUltratech Cement Limited, Patna
Submitted to
Faculty of Management
L.N.Mishra Institute of Economic Development & Social Change, Patna
In Partial Fulfillment of the Requirement for the Award of
the Degree of
Master of Business Administration
L.N.Mishra Institute of Economic Development & Social ChangeJawaharlal Nehru Marg, Patna-800 001, Bihar, IndiaUnder the Guidance of : Submitted by :
Mr. Chandra Singh Randhir Kumar
Faculty of Marketing Roll No. - 11067L.N.M.I.E.D.S.C., Patna
Session : 2011-2013
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
2/73
Dedicated
with regards to my
Loving Parents
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
3/73
DECLERATION
It is declared that the summer Training Project Report Entitled "A Brief Study of
Profitability in Cement Industry with special reference to Ultratech Cement Ltd.,
Patna has been prepared as the part for the completion of the degree of Master of
Business Administration from the L.N.Mishra Institute of Economic Development and
Social change, Patna and it is based on my original work and will be used only for my
academic purpose. It will not be produced in any condition as a source of information to
an industry.
Date :- Randhir Kumar
Roll No. : 11067
Session : 2011-13
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
4/73
PREFACE
At present, there are many cement companies in the market and tough competition
is also exist. Customer satisfaction is most important area for any company.
Customers and Dealers are the backbone of any organization. The proper
appointment of Dealers and production of good products for customers is quite
necessary for achieving the goal of an organization.
Marketing department of Ultratech Cement Limited, Patna is efficient, ideal so that
the organization can achieve its goal.
The report is an attempt to highlight a brief study of evaluation of customers and
Dealers perception and attitude for profitability with special reference to Ultratech
Cement Limited based on 6 weeks practical training,
To complete such a study required grasp information from the market. I have
conducted a detailed market survey in the city of Patna, I had gone through several
dealers shop and collected information regarding the Profitability of Ultratech
Cement.
I want to point out a very important aspect of this training that is right from the
stage of formulating the research problem to the stage of report writing, my
knowledge specially as regards to marketing research, has undoubtedly enhance.
It is not a criticism rather than a humble approach of a student of Business
Management to look into the various problems and may have deficiencies, which
have incurred due to my lack of technical knowledge.
(Randhir Kumar)
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
5/73
ACKNOWLEDGEMENT
I express my sincere gratitude to the MANAGEMENT of Ultratech Cement
(M/s Ganga Carriers Pvt. Ltd., CFA of Ultratech Cement), Patna for
providing me the opportunity to undergo the training programme in their
organization to complete my project work in marketing division.
I am obliged to Mr. Jai Shanker Kumar, Regional Head (Marketing of Ultratech
Cement Ltd., Patna for kind help when I need in my training period.
I am extremely thankful to my able guide Mr. Chandra Singh, Faculty of
Marketing of .L.N.Mishra Institute of Economic Development & Social
Change, Patna for his all along suggestion and dynamic guidance to me.
I also acknowledge with a deep sense of reference my gratitude towards the
members of my family who has always supported me morally as well and
economically.
My last work not the least thanks goes to all my friends who directly or indirectly
help me to complete this project report.
(Randhir Kumar)
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
6/73
CONTENTS
Executive Summary
Chapter - 1
Introduction of the study
Objective of the study
Scope of the Study
Chapter - 2
Company Profile
Chapter - 3
Literature Review
Chapter - 4
Research Methodology
Chapter - 5
Data Analysis and Interpretation
SWOT Analysis
Chapter - 6
Findings
Recommendation
Chapter - 7
Conclusion
Limitations
Bibliography
Questionnaire
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
7/73
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
8/73
Executive Summary
Indian economy is facing a boom in the real estate. This is directly related with the
cement sector. Ultra Tech cement being one of the top three players in the Indianmarket and the most exported Indian cement is an important part of the sector.
During my project, I carried out a research for Ultra Tech cement and tried to find
out its current market position, reasons behind any shortcomings and also found
out some methods of increasing Ultra Tech cement sales.
The report also gives a detailed idea about the Indian cement industry and the key
players.
Cement is a mixture of limestone, Clay, Silica and Gypsum. It is a fine powder
which when mixed with water sets to a hard mass as a result of hydration of the
constituent compounds. It is the most commonly used construction material.
Cement is manufactured by burning a mixture of limestone and Clay at high
temperatures in a kiln, and then finely grinding the resulting clinker along with
Gypsum. The end product thus obtained is called Ordinary Portland Cement (OPC)
"Branding is a strategic decision. We want UltraTech to be the most premium
brand, so that customers are willing to pay Rs 2 to Rs 3 more per bag. Our
premium positioning has already begun to show in some markets in the country,"
says Puranmalka. Some competitors agree. "UltraTech has managed to do that but
the challenge will be to maintain the premium it commands and increase it further.
There is a limit to that though," says a senior executive with South India-based
cement maker.
Though commodity manufacturers don't have a say in retail prices beyond a point,
branding does help in fetching a premium and improving operating margins.
Harish Bijoor, a brand consultant, gives a thumbs up to UltraTech's strategy:
"Branding is essential for commodity companies as there are few other
differentiating factors."
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
9/73
Sample the math. Last year, the company sold around 33 million tonnes of cement
nearly 1,650 million bags. Since around 65 per cent of the cement in India is
bought by individual homeowners who have brand preferences, it could well
translate into additional revenues of at least Rs 215 crore. The gains from branding
will grow even larger as it raises production capacity.
But then, UltraTech's branding strategy is long-term and goes beyond the price of
cement bags. It wants to be a one-stop shop for the construction industry at a time
when customers are no longer happy with just a strong structure they are fussy
about the fittings and the finish too.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
10/73
Chapter - 1
Introduction of the study
Objective of the study
Scope of the Study
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
11/73
Introduction of the study
Profitability are a sometimes-overlooked part of the marketing. They can have a
large impact on profit, so should be given the same consideration as promotion and
advertising strategies. A higher or lower price can dramatically change both gross
margins and sales volume. This indirectly affects other expenses by reducing
storage costs, for example, or creating opportunities for volume discounts with
suppliers.
Other factors also determine your optimal profitability strategy. Consider the five
forces that influence other business decisions: competitors, suppliers, the
availability of substitute products, and customers. Positioning how to be perceived
by target audience is also a consideration. Price a premium item too low, for
example, and customers will not believe the quality is good enough. Conversely,
put too high a selling price on value lines and customers will purchase competitors'
lower-price items.
Some strategies to consider are ...
Competitive pricing.
Use competitors' retail (or wholesale) prices as a benchmark for own prices. Price
slightly below, above or the same as competitors, depending on positioning
strategies.
Cost plus mark-up.
This is the opposite of competitive pricing. Instead of looking at the market, look
at own cost structure. Decide the profit want to make and add it costs to determine
selling price. While using this method will assure a certain per-unit margin, it may
also result in prices that are out-of-line with customer expectations, hurting total
profit.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
12/73
Loss Leader.
A loss leader is an item you sell at or below cost in order to attract more
customers, who will also buy high-profit items. This is a good short-term
promotion technique if you have customers that purchase several items at one
time.
Close out.
Keep this pricing technique in mind when customer have excess inventory. Sell the
inventory at a steep discount to avoid storing or discarding it. Customers goal
should be to minimize loss, rather than making a profit.
Membership or trade discounting.
This is one method of segmenting customers. Attract business from profitable
customer segments by giving them special prices. This could be in the form of
lower price on certain items, a blanket discount, or free product rewards.
Bundling and quantity discounts.
Other ways to reward people for larger purchases are through quantity discounts or
bundling. Set the per-unit price lower when the customer purchases a quantity of
five instead of one, for example. Alternately, charge less when the customer
purchases a bundle or several related items at one time. Bundle overstocks with
popular items to avoid a closeout. Or, bundle established items with a new product
to help build awareness.
Versioning
Versioning is popular with services or technical products, where you sell the same
general product in two or three configurations. A trial or very basic version may be
offered at low or no cost, for example, with upgrades or more services available at
a higher price.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
13/73
Objective of the study
Objective of this study is to fill the gap between theoretical and practical aspects of
the Marketing Management.
In other view, the objective of my study is concerned to :
(1) This study suggests necessary and required measures for the improvement
in the marketing activities.
(2) The purpose of this study is to explore the market and to maintain the
desired quality level and dealers/retailers profitability.
(3) The objective of this study is to develop sound interpersonal relation to get
maximum output between the consumer and producer.
(4) To know consumers expectation with Ultratech cement ltd..
(5) To know what is the market potential of Ultratech Cement in comparison to
other competitors.
(6) To know factors affecting the sale of Ultratech Cement in Patna (Danapur)
Market.
(8) To know the motivational level of dealers of Ultratech Cement.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
14/73
Scope of the Study
The main scope of profitability for any organization to Developing strategy is onething-managing the change process to embed that strategy in the organization is
quite another. The truth is that implementing effective profitability involves
changing the expectations and behaviors of all of the factors involved in the sales
process. Customers must learn that they will be treated fairly and that abusive
purchase tactics will not be rewarded with ad hoc discounts. Sales must learn that
they will be rewarded for closing deals that increase firm profitability rather than
using price as a tactical lever to increase sales volume. Finance must learn to look
beyond cost as a determinant of price to better understand the tradeoffs between
price, cost, and market response. Financial incentives are, without question, one of
the most powerful levers for behavioral change among salespeople.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
15/73
Chapter - 2
Company Profile
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
16/73
Company Profile
Introduction to the Organization
UltraTech Cement Limited is India's biggest cement company and Indias largest
exporter of cement clinker based in Mumbai, India. The company is division
of Grasim Industries. It has an annual capacity of 52 million tonnes.
UltraTech cement holds the Superbrandstatus
It manufactures and markets ordinary Portland cement, Portland blast furnace
slagcement, white cement and Portland Pozzolana cement. It also
manufactures ready-mix concrete (RMC) and Autoclaved Aerated Concrete
Blocks(AAC Blocks) with brand nameUltratech Xtralite. The export markets span
countries around the Indian Ocean, Africa,Europe and the Middle East.
UltraTech is India's largest exporter of cement clinker. The company's production
facilities are spread across eleven integrated plants, one white cement plant, one
clinkerisation plant in UAE, fifteen 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. The export
market consists of countries around the Indian Ocean, Africa, Europe and the
Middle East. Export is a thrust area in the company's strategy for growth.
UltraTech's products include Ordinary Portland cement, Portland Pozzolana
cement and Portland blast furnace slag cement.
Ordinary Portland cement Portland blast furnace slag cement Portland Pozzolana
cement Cement to European and Sri Lankan norms
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
17/73
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 nonmetallic
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 finishability, higher compressive and flexural strength, lower
permeability, improved resistance to aggressive chemicals and more consistent
plastic and hardened consistency.
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.
Plant and Machinery
UltraTech Concrete is manufactured at state-of-the-art computerized automatic batching
& mixing plants with contemporary technology. Some of the special features of our plants
are-
1. Entire process is fully computerized, leaving no scope for human errors. All the
control systems are Windows based.2. Cement and other raw material are checked as per our quality plan.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
18/73
3. All the raw materials are stacked in separate bins and are stored under cover so
that aggregates are not exposed to direct sunlight and environment pollution.
4. Cement, Fly ash, Slag etc. are stored in separate silos for better control on recipe.
5. Handling of fly ash and slag are done from closed bunkers to silos directly.
6. Separate weigh-batchers are provided for each ingredient like cement, water,
admixtures and aggregates. The weighing is done on sophisticated electronic
weigh batchers. Precise weighing of all materials is done through electronic load
cells made up of special alloys.
7. Homogeneous mixing of concrete is ensured by use of special high-efficiency
mixers like pan-type or turbo-twin shaft mixers.
8. A fully equipped onsite plant laboratory is available at each plant.
9. A Sprinkler system is installed to ensure temperature control of aggregates in hot
weather.
10. In line with Groups focus towards environment and eco-friendliness all silos are
installed with bag filters and level indicators to avoid any kind of pollution.
11. Processes are in place for effective and periodic maintenance and calibration of all
critical components.
12. Laser sensor and moisture control are used for a stringent quality assurance.
13. Well trained and experienced engineers are available at every plant to take care of
the quality of concrete.
PLANTS
Awarpur Cement Works
Gujarat Cement Works
Hirmi Cement Works
Jafrabad Cement Works
Arakkonam Cement Works
Jharsuguda Cement Works
Magdalla Cement Works
Ratnagiri Cement Works
West Bengal Cement Works
Ginigera Cement Works
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
19/73
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."
Mrs. Rajashree Birla, Chairperson,
The Aditya Birla Centre for Community
Initiatives and Rural Development
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
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
20/73
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
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
21/73
HISTORY OF THE ORGANIZATION
UltraTech Cement Limited has 12 integrated plants, 1 white cement plant, 11
grinding units in India and 1 clinkerization plant in UAE, 15 grinding units( 11 in
India, 2 in UAE, 1 each in Bahrain and Bangladesh)and 6 bulk terminals (5 in
India and 1 in Sri Lanka).
As part of the seventh biggest cement manufacturer in the world, UltraTech
Cement has eleven integrated plants, one white cement plant, one clinkerisation
plant in UAE, 15 grinding units 11 in India, 2 in UAE, one in Bahrain andBangladesh each and five terminals four in India and one in Sri Lanka.. These
facilities gradually came up over the years, as indicated below:
2011
UltraTech Cement Middle East Investments Limited, a wholly owned subsidiary
of the Company has acquired management control of ETA Star Cement together
with its operations in the UAE, Bahrain and Bangladesh
The cement business of Grasim demerged and vested in Samruddhi Cement
Limited in May, 2010. Subsequently, Samruddhi Cement Limited amalgamated
with UltraTech Cement Limited in July 2010.
2006
Narmada Cement Company Limited amalgamated with UltraTech pursuant to aScheme of Amalgamation being approved by the Board for Industrial & Financial
Reconstruction (BIFR) in terms of the provision of Sick Industrial Companies Act
(Special Provisions)
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
22/73
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
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.
2002 ::
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.
Grasim increases its stake in L&T to 14.15 per cent
Arakkonam grinding unit
2001 ::
Grasim acquires 10 per cent stake in L&T. Subsequently increases stake to 15.3
per cent by October 2002
Durgapur grinding unit
1998-2000
Bulk cement terminals at Mangalore, Navi Mumbai and Colombo
1999 ::
Narmada Cement Company Limited acquired
Ratnagiri Cement Works
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
23/73
1998 ::
Gujarat Cement Works Plant II
Andhra Pradesh Cement Works
1996 ::
Gujarat Cement Works Plant I
1994 ::
Hirmi Cement Works
1993 ::
Jharsuguda grinding unit
1987 ::
Awarpur Cement Works Plant II
1983 ::
Awarpur Cement Works Plant I
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
24/73
Product Profile
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 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.
L.N.Mishra Institute of Economic Development & Social Change, Patna
http://www.ultratechcement.com/products/index.htm#3http://www.ultratechcement.com/products/index.htm#4http://www.ultratechcement.com/products/index.htm#5http://www.ultratechcement.com/products/index.htm#4http://www.ultratechcement.com/products/index.htm#5http://www.ultratechcement.com/products/index.htm#3 -
7/27/2019 Ultratech Profitability L.N. Patna
25/73
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.
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.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
26/73
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.
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.
UltraTech concrete plants are present in-
Mumbai,
Pune,
Nasik,
Nagpur,
Ahmedabad,
Surat,
Gurgaon,
Noida,
Jaipur,
Chandigarh,
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
27/73
Chennai,
Bangalore,
Hyderabad,
Cochin,
Vizag,
Ludhiana,
Raipur
Production
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.
Cement
UltraTech Concrete plants use fresh cement directly procured from the state-of-
the-art cement plants mainly through cement bulkers, which in turn is pumped
directly into UltraTech Concrete silos, thus protecting it from the external
environment and humidity.
Coarse Aggregates
UltraTech Concrete directly sources the aggregates from selected and approved
suppliers and these aggregates are tested as per IS stipulations at regular intervals
for:
Shape, size and gradation (elongation/flakiness test)
Impact value and crushing value test for their strength
Fine Aggregate
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
28/73
UltraTech Concrete directly purchases sand from selected and approved suppliers.
The sand is tested as per IS stipulations at regular intervals for:
Moisture content
Gradation for fineness modulus
Silt content
Water
UltraTech Concrete tests the quality of water as per BIS standards at frequent
intervals and in case the water needs any treatment, water purifiers are used.
Mineral Admixtures
In UltraTech Concrete plants, mineral admixtures are obtained from proven
sources conforming to relevant BIS standards. High-tech facilities are used for
collection, transportation and storage to avoid contamination due to environment
and any other source.
Chemical Admixtures
In UltraTech Concrete plants, high quality admixtures are used in concrete during
mixing to improve certain properties of fresh concrete such as workability and
setting time. The admixture is sourced from reputed companies and is tested for
compatibility with cement before use.
Workability of concrete
In UltraTech Concrete, workability is properly controlled through scientific
methods by appropriate dosing of admixtures. Workability is measured (and
recorded) for every batch to facilitate efficient transportation and pumping.
Batching and Mixing
UltraTech Concrete is proportioned using computer aided scientific methods
conforming to relevant standards. Mixing is done through high efficiency pan
mixers or twin shaft vibro-mixers in fully automated mixing and batching plant
leaving no scope for human error. These measures ensure consistent quality in
every batch.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
29/73
Organizational Structure
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
30/73
COMPETITORS OF THE ORGANIZATION
Lafarge Cement
Lafarge India is a subsidiary of the French Building Materials major Lafarge. Lafarge isthe world leader in building materials, with top-ranking positions in all of its businesses:
Cement, Aggregates & Concrete and Gypsum. Lafarge entered the Indian market in 1999,
with the acquisition of the cement business of Tata Steel. This acquisition was followed
by the purchase of the Raymond Cement facility in 2001.
Lafarge currently has four cement plants in India: two integrated plants in the state of
Chhattisgarh , one grinding station each in Jharkhand & West Bengal. Total cementproduction capacity of Lafarge in the Indian market currently stands at around 6.5 million
tons. Lafarge India produces different types cements like Portland Slag Cement, Portland
Pozzolana Cement. Lafarge Cement is famous all over the world for its premium quality
and has been used to build many landmark buildings,structures globally. The company is
a leading cement player in Eastern India. Its brands Lafarge Cement and Lafarge
Concreto Cement enjoy high brand equity here and are amongst the highest priced brands.
Lafarge is committed to the Indian market and has firm plans to expand its capacity in
India.
Ambuja Cements
Ambuja Cements Limited was set up in the late 80s. The cement industry
presented an opportunity of steady growth and ethical competition to the
promoters.
However, a decade later, it became one of worlds most efficient cement
companies producing the finest cement in the world at the lowest cost. While
adhering to the most stringent international pollution-control norms.
Today, Ambuja is the 3 rd largest cement company in India, with an annual plant
capacity of 16 million tonnes including Ambuja Cement Eastern Ltd. and revenue
in excess of Rs.3298 crores.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
31/73
More importantly, its plants are some of the most efficient in the world. With
environment protection measures that are on par with the finest in the developed
world. But the companys most distinctive attribute is its approach to the business.
Ambuja believes its most valuable assets arent cement plants.
ACC
ACC Limited is Indias foremost cement manufacturer 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. Among the first
companies in India to include commitment to environment protection as a
corporate objective, ACC has won accolades for environment friendly measures
taken at its plants and mines, and has also been felicitated for its acts of good
corporate citizenship.
Samruddhi Cement
Samruddhi Cement Ltd. is a manufacturer and marketer of cement. The company was
incorporated in 2009 and is based in Nagda, India. As per the transaction announced on
October 6, 2009, Samruddhi Cement Ltd. operates as a subsidiary of UltraTech Cement
Limited.
Shree Cements
Shree Cement is the largest cement manufacturer in North India and among the top
five cement manufacturing groups in the country. The company is being
professionally managed by its promoters Shri B. G. Bangur, Chairman
and Shri H. M. Bangur, Managing Director. Turnover of the company for 2009-10
was Rs. 3632 Crores and Net profit was Rs. 676 Crores, while in 2008-09 the
company posted a turnover of Rs. 2715 crore and generated operating
profit of nearly Rs. 1034 crore . It has more than quadrupled its capacity in the last
5 years to reach present cement capacity of 12 million tons p.a. with
manufacturing plants at Beawar, Ras, Khushkhera and Suratgarh in Rajasthan
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
32/73
and Laksar (Roorkee) in Uttarakhand. The Company follows a multi-brand
strategy and sells cement under the highly recognized brands of Shree Ultra,
Bangur and Rockstrong. which together enjoy largest market share in high value
markets of Rajasthan, Delhi & Haryana.
India Cements
The Company is the largest producer of cement in South India.The Company's
plants are well spread with three in Tamilnadu and four in Andhra Pradesh which
cater to all major markets in South India and Maharashtra. The Company is the
market leader with a market share of 28% in the South. It aims to achieve a 35%
market share in the near future. The Company has access to huge limestone
resources and plans to expand capacity by de-bottlenecking and optimisation of
existing plants as well as by acquisitions. The Company has a strong distribution
network with over 10,000 stockists of whom 25% are dedicated.The Company has
well established brands- Sankar Super Power, Coromandel Super Power and Raasi
Super Power. Regional offices in all southern states and Maharasthra
offices/representative in every district.
Prism Cement
Birla Corporation Limited is the flagship Company of the M.P. Birla Group.
Incorporated as Birla Jute Manufacturing Company Limited in 1919, it was Late
Mr. Madhav Prasad Birla who gave shape to it. As Chairman of the Company,
Mr. Madhav Prasad Birla transformed it from a manufacturer of jute goods to a
leading multi-product corporation with widespread activities. Under the
Chairmanship ofMrs. Priyamvada Birla, the Company crossed the Rs. 1300 -
crore turnover mark and the name was changed to Birla Corporation Limited in
1998.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
33/73
Madras Cements
Madras Cements Ltd is the flag ship company of Ramco Group, a well known
business group of South India. It is based at Chennai. The main product of the
company is Portland Cement manufactured through the five advanced production
facilities spread over South India. The cement capacity is 10.49 million tons per
annum. The company is the fifth largest cement producer in the country. Ramco
Supergrade is the most popular cement brand in South India. The company also
produces Ready Mix Concrete and Dry Mortar products. In addition, the company
also operates one of the largest wind farms in the country .
Chetinad Cement
Chettinad Cement Corporation Limited is an India-based company engaged in the
business of manufacturing cement
. The Company's cement products include OPC43 Grade, Super Grade, Sulphate
Resistant Portland Cement and Portland Slag Cement. It has three manufacturing
plants at Puliyur, Karikkali and Ariyalur. As of March 31, 2009, the Company's
production capacity was five million tons per annum.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
34/73
Chapter - 3
Literature Review
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
35/73
Literature Review (Profitability)
INTRODUCTION
Profit is an excess of revenues over associated expenses for an activity over a
period of time. Terms with similar meanings include earnings, income, and
margin. Lord Keynes remarked that Profit is the engine that drives the business
enterprise. Every business should earn sufficient profits to survive and grow over
a long period of time. It is the index to the economic progress, improved national
income and rising standard of living. No doubt, profit is the legitimate object, but
it should not be over emphasised. Management should try to maximise its profit
keeping in mind the welfare of the society. Thus, profit is not just the reward to
owners but it is also related with the interest of other segments of the society.
Profit is the yardstick for judging not just the economic, but the managerial
efficiency and social objectives also.
CONCEPT OF PROFITABILITY
Profitability means ability to make profit from all the business activities of anorganization, company, firm, or an enterprise. It shows how efficiently the
management can make profit by using all the resources available in the market.
According to Harward & Upton, profitability is the the ability of a given
investment to earn a return from its use. However, the term Profitability is not
synonymous to the term Efficiency. Profitability is an index of efficiency; and is
regarded as a measure of efficiency and management guide to greater efficiency.
Though, profitability is an important yardstick for measuring the efficiency, the
extent of profitability cannot be taken as a final proof of efficiency. Sometimes
satisfactory profits can mark inefficiency and conversely, a proper degree of
efficiency can be accompanied by an absence of profit. The net profit figure
simply reveals a satisfactory balance between the values receive and value given.
The change in operational efficiency is merely one of the factors on which
profitability of an enterprise largely depends. Moreover, there are many other
factors besides efficiency, which affect the profitability.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
36/73
PROFIT & PROFITABILITY
Sometimes, the terms Profit and Profitability are used interchangeably. But in
real sense, there is a difference between the two. Profit is an absolute term,
whereas, the profitability is a relative concept. However, they are closely related
and mutually interdependent, having distinct roles in business.
Profit refers to the total income earned by the enterprise during the specified
period of time, while profitability refers to the operating efficiency of the
enterprise. It is the ability of the enterprise to make profit on sales. It is the ability
of enterprise to get sufficient return on the capital and employees used in the
business operation.
As Weston and Brigham rightly notes to the financial management profit is the
test of efficiency and a measure of control, to the owners a measure of the worth of
their investment, to the creditors the margin of safety, to the government a measure
of taxable capacity and a basis of legislative action and to the country profit is an
index of economic progress, national income generated and the rise in the standard
of living, while profitability is an outcome of profit. In other words, no profit
drives towards profitability. Firms having same amount of profit may vary in
terms of profitability. That is why R. S. Kulshrestha has rightly stated, Profit in
two separate business concern may be identical, yet, many a times, it usually
happens that their profitability varies when measured in terms of size of
investment.
In neoclassical microeconomic theory, the termprofithas two related but distinct
meanings. Normal profit represents the total opportunity costs (both explicit and
implicit) of a venture to an investor, whereas economic
profit (also abnormal, pure,supernormal orexcess profit, as the case may
be monopoly oroligopoly profit) is, at least in the neoclassical microeconomic
theorywhich dominates modern economics, the difference between afirm's
L.N.Mishra Institute of Economic Development & Social Change, Patna
http://en.wikipedia.org/wiki/Explicit_costhttp://en.wikipedia.org/wiki/Neoclassical_economicshttp://en.wikipedia.org/wiki/Neoclassical_economicshttp://en.wikipedia.org/wiki/Neoclassical_economicshttp://en.wikipedia.org/wiki/Firmhttp://en.wikipedia.org/wiki/Firmhttp://en.wikipedia.org/wiki/Explicit_costhttp://en.wikipedia.org/wiki/Neoclassical_economicshttp://en.wikipedia.org/wiki/Neoclassical_economicshttp://en.wikipedia.org/wiki/Firm -
7/27/2019 Ultratech Profitability L.N. Patna
37/73
total revenue and all costs (including normal profit). A related concept, sometimes
considered synonymous in certain contexts, is that ofeconomic rent.
In Classical economics and Marxian economics, profit is the return to
anownerofcapital stock(means of production) in any productive pursuit
involving labor, or a return on bonds and money invested in capital
markets. Specifically in Marxian economic theory, the maximization of profit and
the accumulation of capital is the driving force behind economic activity within
capitalist economic systems.
Other types of profit have been referenced, includingsocial profit(related
to externalities). It is not to be confused withprofit in finance and accounting,
which is equal to revenue minus only explicit costs, and super profit, a concept
in Marxian economic theory.
Profit is not synonymous with the concepts of profitability and theprofit motive.
Normal profit
Normalprofit is a component of (implicit) costs, and so not a component of
business profit at all. It represents the opportunity cost for enterprise, since the
time that the owner spends running the firm could be spent on running another
firm. The enterprise component of normal profit is thus the profit that a business
owner considers necessary to make running the business worth his while i.e. it is
comparable to the next best amount the entrepreneur could earn doing another job.[1] Particularly if enterprise is not included as a factor of production, it can also be
viewed a return to capital for investors including the entrepreneur, equivalent to
the return the capital owner could have expected (in a safe investment), plus
compensation for risk.[3] In other words, the cost of normal profit varies both
within and across industries; it is commensurate with the riskiness associated with
each type of investment, as per the risk-return spectrum.
L.N.Mishra Institute of Economic Development & Social Change, Patna
http://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Economic_renthttp://en.wikipedia.org/wiki/Classical_economicshttp://en.wikipedia.org/wiki/Ownerhttp://en.wikipedia.org/wiki/Ownerhttp://en.wikipedia.org/wiki/Capital_stockhttp://en.wikipedia.org/wiki/Means_of_productionhttp://en.wikipedia.org/wiki/Accumulation_of_capitalhttp://en.wikipedia.org/wiki/Economic_systemhttp://en.wikipedia.org/wiki/Externalityhttp://en.wikipedia.org/wiki/Profit_(accounting)http://en.wikipedia.org/wiki/Profit_motivehttp://en.wikipedia.org/wiki/Profit_(economics)#cite_note-carbaurgh-1http://en.wikipedia.org/wiki/Factor_of_productionhttp://en.wikipedia.org/wiki/Profit_(economics)#cite_note-lipsey-3http://en.wikipedia.org/wiki/Risk-return_spectrumhttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Economic_renthttp://en.wikipedia.org/wiki/Classical_economicshttp://en.wikipedia.org/wiki/Ownerhttp://en.wikipedia.org/wiki/Capital_stockhttp://en.wikipedia.org/wiki/Means_of_productionhttp://en.wikipedia.org/wiki/Accumulation_of_capitalhttp://en.wikipedia.org/wiki/Economic_systemhttp://en.wikipedia.org/wiki/Externalityhttp://en.wikipedia.org/wiki/Profit_(accounting)http://en.wikipedia.org/wiki/Profit_motivehttp://en.wikipedia.org/wiki/Profit_(economics)#cite_note-carbaurgh-1http://en.wikipedia.org/wiki/Factor_of_productionhttp://en.wikipedia.org/wiki/Profit_(economics)#cite_note-lipsey-3http://en.wikipedia.org/wiki/Risk-return_spectrum -
7/27/2019 Ultratech Profitability L.N. Patna
38/73
Only normal profits arise in circumstances of perfect competition when long
run economic equilibrium is reached; there is no incentive for firms to either enter
or leave the industry.
Economic profit
An economic profit arises when revenue exceeds the opportunity cost of inputs,
noting that these costs include the cost of equity capital that is met by normal
profits. If a firm is making an economic loss (its economic profit is negative), it
follows that all costs are not being met in full, and the firm would do better to
leave the industry in the long run. In terms of the wider economy, economic profit
indicates that resources are being employed in useful endeavours, while economic
losses indicate that those resources would be better employed elsewhere.
In competitive and contestable markets
Only in the short run can a firm in a perfectly competitive market make an
economic profit.
Economic profit does not occur in perfect competition in long run equilibrium; if it
did, there would be an incentive for new firms to enter the industry, aided by a lack
of barriers to entry until there was no longer any profit. As new firms enter the
industry, they increase the supply of the product available in the market, and these
new firms are forced to charge a lower price to entice consumers to buy the
additional supply these new firms are supplying (they compete for
L.N.Mishra Institute of Economic Development & Social Change, Patna
http://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Long_runhttp://en.wikipedia.org/wiki/File:Perfect_competition_in_the_short_run_(simple).svghttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Long_run -
7/27/2019 Ultratech Profitability L.N. Patna
39/73
customers). Incumbent firms within the industry face losing their existing
customers to the new firms entering the industry, and are therefore forced to lower
their prices to match the lower prices set by the new firms. New firms will
continue to enter the industry until the price of the product is lowered to the point
that it is the same as the average cost of producing the product, and all of the
economic profit disappears. When this happens, economic agents outside of the
industry find no advantage to entering the industry, supply of the product stops
increasing, and the price charged for the product stabilizes.
The same is likewise true of the long run equilibria of monopolistically
competitive industries and, more generally, any market which is held to
be contestable. Normally, a firm that introduces a differentiated product can
initially secure market power for a short while. At this stage, the initial price the
consumer must pay for the product is high, and the demand for, as well as the
available of the product in the market, will be limited. In the long run, however,
when the profitability of the product is well established, and because there are few
barriers to entry, the number of firms that produce this product will increase until
the available supply of the product eventually becomes relatively large, the price
of the product shrinks down to the level of the average cost of producing the
product. When this finally occurs, all monopoly associated with producing and
selling the product disappears, and the initial monopoly turns into a competitive
industry. In the case of contestable markets, the cycle is often ended with the
departure of the former "hit and run" entrants to the market, returning the industry
to its previous state, just with a lower price and no economic profit for the
incumbent firms.
Profit can, however, occur in competitive and contestable markets in the short run,
as firms jostle for market position. Once risk is accounted for, long-lasting
economic profit in a competitive market is thus viewed as the result of constant
cost-cutting and performance improvement ahead of industry competitors,
allowing costs to be below the market-set price.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
40/73
In uncompetitive markets
A monopolist can set a price in excess of costs, making an economic profit
(shaded). The above Picture shows a Monopolist (only 1 Firm in the
Industry/Market). An Oligopoly usually has "Economic Profit" also, but usually
faces an Industry/Market with more than just 1 Firm (they must share availableDemand at the Market Price).
Economic profit is, however, much more prevalent in uncompetitive markets such
as in a perfect monopoly or oligopoly situation. In these scenarios, individual firms
have some element of market power: Though monopolists are constrained
by consumer demand, they are not price takers, but instead either price-setters or
quantity setters. This allows the firm to set a price which is higher than that which
would be found in a similar but more competitive industry, allowing them
economic profit in both the long and short run.
The existence of economic profits depends on the prevalence of barriers to entry:
these stop other firms from entering into the industry and sapping away
profits, like they would in a more competitive market. In cases where barriers are
present, but more than one firm, firms can collude to limit production, thereby
restricting supply in order to ensure the price of the product remains high enough
to ensure all of the firms in the industry achieve an economic profit.
However, some economists, for instance Steve Keen, argue that even an
infinitesimal amount of market power can allow a firm to produce a profit and that
the absence of economic profit in an industry, or even merely that some productionoccurs at a loss, in and of itself constitutes a barrier to entry.
L.N.Mishra Institute of Economic Development & Social Change, Patna
http://en.wikipedia.org/wiki/File:Imperfect_competition_in_the_short_run.svg -
7/27/2019 Ultratech Profitability L.N. Patna
41/73
In a single-goods case, a positive economic profit happens when the firm's average
cost is less than the price of the product or service at the profit-maximizing output.
The economic profit is equal to the quantity of output multiplied by the difference
between the average cost and the price.
Maximization
It is a standard economic assumption (though not necessarily a perfect one in the
real world) that, other things being equal, a firm will attempt to maximize its
profits. Given that profit is defined as the difference in total revenue and total cost,
a firm achieves a maximum by operating at the point where the difference between
the two is at its greatest. In markets which do not show interdependence, this point
can either be found by looking at these two curves directly, or by finding and
selecting the best of the points where the gradients of the two curves (marginal
revenue and marginal cost respectively) are equal. In interdependent
markets, game theory must be used to derive a profit maximising solution.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
42/73
Chapter - 4
Research Methodology
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
43/73
Research Methodology
Methodology is a systematic way to undertake the study. It may be understood as a
science of studying how study is done. In fact, success of the research project depends
entirely on the data and therefore the methods employed in the collection of the data.
Study Objective -
The main objective of the study is to understand the business environment of Ultratech
cement all product, to know the supply chain of the company how they work.
Research Design :-Research design indicates the methods of research i.e. the methods of gathering
information and methods of sampling. Research design in the study is descriptive
analytical research. It is designed to describe something, such as demographic
characteristics or who use the product.
Sampling Technique :-
The sampling techniques involved in this project are convenience sampling technique.
The respondents were interviewed at various placed like dealers/retailers outlet.
Sampling Plan :-
1. Sampling unit : Sampling unit consist of Manufacturer, Distributor, Retailer and
consumers, it mainly comprises of consumers, Retailer and distributor in Patna.
2. Sampling method : convenience sampling method.
3. Sample Size : It consists of 50 dealerss.
Data Collection Methods :
1) Primary Data :-
In this method the various information are gethered for the very first time or we can say
that it is a way of getting first hand information. Primary data is gathered by interview,
questionnaire. This primary data collection was major part of field survey.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
44/73
2. Secondary Data :-
Data which are already available and it may provide ready information relevant to the
study is called secondary data.
The information collection process and methodology which I followed secondary data
with the help of Internal source (Life history, Letters, Diaries and Memory), External
Sources (Book, Business Journals, websites etc.) and other such modes of information
generation.
Questionnaire Description :
The questionnaire was prepared consisting of structured and non-disguised. The questions
were logically and sequentially arranged in the questionnaire so the proper and authentic
information can be obtained from the respondents without any anomalies from the part of
the respondents provided corrects response can obtained.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
45/73
Chapter - 5
Data Analysis and Interpretation
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
46/73
Data Analysis and Interpretation
I collected opinions of Fifty respondents of different areas of Patna area through
survey on the basis of random. These are the following opinions which important
for study point of view:-
Q.-1
How much your business volume is accounted for by Ultratech Cement ?
Opinion No. of Respondents Percentage
50% 10 20%
Total 50 100%
.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
47/73
Q -2
How much your profit is derived from Ultratech Cement ?
Opinion No. of Respondents Percentage24% or Less 7 14%
25%-49% 12 24%
50%-74% 25 50%
75% or More 6 12%
Total 50 100%
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
48/73
Q -3
To what extend do you plan to give ultratech greater emphasis in your business
over the next few years ?
Opinion No. of Respondents Percentage
Greater Extent 45 90%
Moderate Extent 3 6%
Slight Extent 2 4%
Not at all 0 0%
Total 50 100%
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
49/73
Q -4
What is the range of your dealership Sales Volume of Ultratech Cement last
month?
Opinion No. of Respondents Percentage
Rs.250000-499000 10 20%
Rs. 500000-999000 25 50%
Rs.1000000-2999000 8 16%
Rs.3000000-5000000 5 10%
Rs.5000000-more 2 4%
Total 50 100%
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
50/73
Q -5
Compared to (Market Leader) how does ultratech cement offer advantages in
profitability ?
Opinion No. of Respondents Percentage
Strong 30 60%
Slight 10 20%
About the same 5 10%
Slight Disadvantage 2 4%
Strong Disadvantages 3 6%
Total 50 100%
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
51/73
Q.-6
Compared to (Market leader) How does Ultratech offer advantages in service &
supplies business ?
Opinion No. of Respondents Percentage
Strong 30 60%
Slight 10 20%
About the same 5 10%
Slight Disadvantage 2 4%
Strong Disadvantages 3 6%
Total 50 100%
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
52/73
Q -7
Which companies product do you see as offering a stronger competitive position
to Ultratech dealers ?
Opinion No. of Respondents Percentage
ACC Cement 10 20%
Lafarge Cement 25 50%
JP Cement 7 14%
Prism Cement 5 10%
Ambuja Cement 3 6%
Total 50 100%
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
53/73
Q. -8
How long have you been a Ultratech Dealer ?
Opinion No. of Respondents Percentage1-5 years 15 30%
5-10 years 25 50%
10-15 years 7 14%
20 or More 3 6%
Total 50 100%
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
54/73
Q. -9
On Average which of the following best describes Ultratech Management's
Timeliness in Response to your request & Inquiries ?
Opinion No. of Respondents Percentage
Very Timely 35 70%
Timely 7 14%
Mixed 5 10%
Slow 3 6%
Total 50 100%
.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
55/73
Q. -10
As a seller which promotional tools do you think is the most important ?
Opinion No. of Respondents PercentageAdvertising 10 20%
Sales Promotion 30 60%
Personal Selling 5 10%
Publicity 5 10%
Total 50 100%
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
56/73
Q. -11
If you think Ultratech cement Co. needs improvement in what respects should
the improvement be ?
Opinion No. of Respondents Percentage
Quality 3 6%
Price 7 14%
Promotion 10 20%
Distribution 30 60
All of the above 0 0
Total 50 100%
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
57/73
Q. -12
Do you think that a Brand Ambassador would influence buyer's purchase
decision for particular brand of cement ?
Opinion No. of Respondents Percentage
Yes 10 20%
No 40 80%
Total 50 100%
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
58/73
Q -13
How is Ultratech Cement customer relationship management ?
Opinion No. of Respondents PercentageGood 25 50%
Best 15 30%
Average 5 10%
Poor 5 10%
Total 50 100%
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
59/73
Q. -14
Which cement brand is more profitable for you ?
Opinion No. of Respondents PercentageUltratech 25 50%
JP Cement 3 6%
ACC Cement 2 4%
Lafarge Cement 20 40%
Total 50 100%
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
60/73
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. UltraTechs 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.
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
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
61/73
Everyone looks up to a visionary leader to understand the possibilities tomorrow
holds. And you have a greater responsibility to bear when you are Indias largest
cement company.
In the present day context, UltraTech is playing an important role in the
infrastructural development of the country. No wonder, UltraTechs 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
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.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
62/73
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, isorchestrating a contemporary brand makeover. With UltraTech Cement, the Aditya
Birla Group has established itself as not only the most respected domestic player
but also among the global leaders in cement.
UltraTech has strong competitors likeACC, 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
competitors in order to retain its market position and the goodwill in the market.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
63/73
Chapter - 6
Findings
Recommendation
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
64/73
Findings
The Aditya Birla Group is the ninth-largest cement producer in the world
Incorporated on 24 August 2000 as L&T Cement Limited
Cement business of Larsen & Toubro Limited demerged and vested in
company in 2004
Grasim acquired management control in July 2004
Together with Grasim, one of the largest cement producers in India
Name changed to UltraTech Cement Limited with effect from 14 October
2004
Narmada Cement Company Limited amalgamated with UltraTech in May
2006
Cement business of Grasim demerged and vested in Samruddhi Cement
Limited in May 2010
Samruddhi Cement Limited amalgamated with UltraTech Cement Limited
in July 2010
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
65/73
Recommendation
On the basis of above study carried out by me, the following suggestions are
submitted:-
To increase the sales of Ultratech Cement in such area there is a need of
time to time demo program, seminars & meetings.
There is a need of more promotional activities specially in sub dealerand
outside patna area.
Time to time offers should be provided to the customer from ourUltratech
company.
Need to available all the construction parts, material and tools our
distributor office.
Ultratech Company should be change the colour of PSC bags.
The company must improve its supply so as the demand for the cement can
easily be met.
It must target the rural markets as they are providing a good marketing
opportunity these days.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
66/73
Chapter - 7
Conclusion
Limitation
Bibliography
Questionnaire
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
67/73
Conclusion
1. Despite the increased role of non-price factors in modern marketing, priceremains a critical element of the marketing mix. Price is the only element
that produces revenue; the others produce costs.
2. In setting pricing policy, Ultratech follows a six-step procedure. It selects
its pricing objective. It estimates the demand curve, the probable quantities
it will sell at each possible price. It estimates how its costs vary at different
levels of output, at different levels of accumulated production experience,
and for differentiated marketing offers. It examines competitors' costs,
prices, and offers. It selects a pricing method. It selects the final price.
3. Ultratech do not usually set a single price, but rather a pricing structure that
reflects variations in geographical demand and costs, market-segment
requirements, purchase timing, order levels, and other factors. Several
price-adaptation strategies are available: (1) geographical pricing; (2) price
discounts and allowances; (3) promotional pricing; and (4)
discriminatory pricing.
4. After developing pricing strategies, Lafarge often face situations in which
they need to change prices. A price decrease might be brought about by
excess plant capacity, declining market share, a desire to dominate the
market through lower costs, or economic recession. A price increase might
be brought about by cost inflation or over demand. Companies must
carefully manage customer perceptions in raising prices.
5. Ultratech must anticipate competitor price changes and prepare contingent
response. A number of responses are possible in terms of maintaining or
changing price or quality.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
68/73
6. The Ultratech facing a competitor's price change must try to understand the
competitor's intent and the likely duration of the change. Strategy often
depends on whether a firm is producing homogeneous or nonhomogeneous
products. Market leaders attacked by lower-priced competitors can choose
to maintain price, raise the perceived quality of their product, reduce price,
increase price and improve quality, or launch a low-priced fighter line.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
69/73
Limitations
(i) Limitation of time :-
The time allowed for the study was not sufficient , so it was not possible to
adopt full methodology within the stipulated time.
(ii) Limitation of finance :-
It had not been possible to make in depth study in above respect due to the
limitation of finance.
(iii) Limitation of area :-
It was not possible to survey the Patna due to the lack of time and finance.(iv) Some other Limitations :-
(a) More stress was given on primary data as it was difficult to collect
secondary data from organization.
(b) The result of Survey are based upon crucial assumptions like -
The respondents know the right answer to the question put to
them.
They are willing to give the right answer.
(c) All the conclusion and suggestion will be made in the feedback
obtained from survey on the basis of responses given by respondents.
In spite of all those limitations efforts were made on my part to come out
with whatever possible information was gathered and give view/points on it in the
form of suggestion at the concluding part of this project.
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
70/73
Bibliography
(A) Books :
Kotler, Philip, Marketing Management. (The millenium edition).
Ramaswami, V.S., and Namakumari, S., Marketing Management:
Planning Implementation and concept . (The India, Context)
Kothari, C.R., Research Methodology
Chuna wala, S.A., Sethia, K.C. foundation of advertising
Subrato Sen Gupta : Brand Positioning
(B) News Paper:
The Economic Times
Times of India
Business Standard
Business Line
(C) Magazine :
The Economic Times
Business Today
4p's
Business World
Business Cronicle
Yojna
(D) Journal :
The Indian Journal of Marketing
Marketing Mastermind
Advertisement express
(E) Internet :
www.ultratechcement.com
www.google.co.in
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
71/73
Questionnaire
Name : ..................................................................................................
Address: ..................................................................................................
Phone No.: ..................................................................................................
Contact People :.............................................................................................
Q.1. How much your business volume is accounted for by Ultratech Cement ?
(a) 50%
Q.2 How much your profit is derived from Ultratech Cement ?
(a) 24% or Less (b) 25%-49%
(c) 50%-74% (d) 75% or More
Q .3 To what extend do you plan to give Ultratech greater emphasis in your
business over the next few years ?
(a) Greater Extent (b) Moderate Extent
(c) Slight Extent (d) Not at all
Q.4 What is the range of your dealership Sales Volume of Ultratech Cement last
month?
(a) Rs.250000-499000 (b) Rs. 500000-999000
(c) Rs.1000000-2999000 (d) Rs.3000000-5000000
(e) Rs.5000000-more
Q.5 Compared to (Market Leader) how does Ultratech cement offer advantages
in profitability ?
(a) Strong (b) Slight
(c) About the same (d) Slight Disadvantage
(e) Strong Disadvantages
Q.6 Compared to (Market leader) How does Ultratech offer advantages in
service & supplies business ?
(a) Strong (b) Slight
(c) About the same (d) Slight Disadvantage
(e) Strong Disadvantages
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
72/73
Q.7 Which companies product do you see as offering a stronger competitive
position to Ultratech dealers ?
(a) ACC Cement (b) JP Cement
(c) Prism Cement (d) Ambuja Cement
(e) Lafarge Cement
Q.8 How long have you been a Ultratech Dealer ?
(a) 1-5 years (b) 5-10 years
(c) 10-15 years (d) 20 or More
Q.9. On Average which of the following best describes Ultratech Management's
Timeliness in Response to your request & Inquiries ?
(a) Very Timely (b) Timely
(c) Mixed (d) Slow
Q.10 As a seller which promotional tools do you think is the most important ?
(a) Advertising (b) Sales Promotion
(c) Personal Selling (d) Publicity
Q. 11 If you think Ultratech cement Co. needs improvement in what respects
should the improvement be ?
(a) Quality (b) Price
(c) Promotion (d) Distribution
(e) All of the above
Q.12 Do you think that a Brand Ambassador would influence buyer's purchase
decision for particular brand of cement ?
(a) Yes (b) No
Q.13 How is Ultratech Cement customer relationship management ?
(a) Good (b) Best
(c) Average (d) Poor
Q.14 Which cement brand is more profitable for you ?
(a) ACC Cement (b) JP Cement
(c) Prism Cement (d) Ambuja Cement
(e) Lafarge Cement
L.N.Mishra Institute of Economic Development & Social Change, Patna
-
7/27/2019 Ultratech Profitability L.N. Patna
73/73
Q.15. What suggestion do you have for Ultratech Management which would help you
improve the success of your company business next a year ?
__________________________________________________________________
__________________________________________________________________
_________________________________________________________________
Thanking you
Signature of surveyor