ultratech profitability l.n. patna

7/27/2019 Ultratech Profitability L.N. Patna

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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



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Dedicated

with regards to my

Loving Parents



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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



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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)



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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)



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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



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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."



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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.



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Chapter - 1



Scope of the Study



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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.



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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.



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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.



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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.



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Chapter - 2

Company Profile



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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



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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.



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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



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Mission

To deliver superior value to our customers, shareholders, employees

and

society at large.

Vision

"To actively contribute to the social and economic development of the

communities in which we operate. In so doing, build a better,

sustainable way of life for the weaker sections of society and raise the

country's human development index."

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



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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



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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)



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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



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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



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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.

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


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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.



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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,



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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



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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.



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Organizational Structure



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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.



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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



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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.



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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.



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Chapter - 3

Literature Review



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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.



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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

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


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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.

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


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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

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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.



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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.

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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.



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Chapter - 4




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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.



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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.



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Chapter - 5




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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%

.



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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%



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Q -3

To what extend do you plan to give ultratech greater emphasis in your business

over the next few years ?


Greater Extent 45 90%

Moderate Extent 3 6%

Slight Extent 2 4%

Not at all 0 0%

Total 50 100%



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Q -4

What is the range of your dealership Sales Volume of Ultratech Cement last

month?


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%



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Q -5

Compared to (Market Leader) how does ultratech cement offer advantages in

profitability ?


Strong 30 60%

Slight 10 20%

About the same 5 10%

Slight Disadvantage 2 4%

Strong Disadvantages 3 6%

Total 50 100%



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Q.-6

Compared to (Market leader) How does Ultratech offer advantages in service &

supplies business ?


Strong 30 60%

Slight 10 20%

About the same 5 10%

Slight Disadvantage 2 4%

Strong Disadvantages 3 6%

Total 50 100%



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Q -7

Which companies product do you see as offering a stronger competitive position

to Ultratech dealers ?


ACC Cement 10 20%

Lafarge Cement 25 50%

JP Cement 7 14%

Prism Cement 5 10%

Ambuja Cement 3 6%

Total 50 100%



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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%



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Q. -9

On Average which of the following best describes Ultratech Management's

Timeliness in Response to your request & Inquiries ?


Very Timely 35 70%

Timely 7 14%

Mixed 5 10%

Slow 3 6%

Total 50 100%

.



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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%



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Q. -11

If you think Ultratech cement Co. needs improvement in what respects should

the improvement be ?


Quality 3 6%

Price 7 14%

Promotion 10 20%

Distribution 30 60

All of the above 0 0

Total 50 100%



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Q. -12

Do you think that a Brand Ambassador would influence buyer's purchase

decision for particular brand of cement ?


Yes 10 20%

No 40 80%

Total 50 100%



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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%



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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%



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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



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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.



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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.



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Chapter - 6

Findings

Recommendation



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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



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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.



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Chapter - 7

Conclusion

Limitation

Bibliography

Questionnaire



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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.



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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.



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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.



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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



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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



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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



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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

ultratech profitability l.n. patna

Documents