A

PROJECT REPORT ON
“A STUDY ON EFFECTIVENESS OF SALES
PROMOTIONAL ACTIVITIES WITH REFERENCE TO
BINANI CEMENT LTD.”

Submitted in partial fulfillment for the

Award of degree of
Master of Business Administration

SUBMMITED BY:- SUBMITTED TO:-

Avdhesh Yogi Mr. Mustafa Husain
M.B.A. III Sem. Asst. Professor (MIMT)

SESSION - 2009-2011
MODI INSTITUTE OF MANAGEMENT & TECHNOLOGY, KOTA

1
 PREFACE

This Project Report seeks to discuss the practical knowledge of marketing areas
Vocational Training gives practical exposure to a candidate through which he relate.

What the learnt in the institution that can be applied practically in the organization. It
is of outmost value to a management student as it helps to develop among students
a feeling about business environment and prevailing scenario.

Marketing involves the framework for marketing division several analytical methods
used to cope with various problems in the market and present information about the
present market scenario.

My project was a survey in the suggestions to improve the supply of cement.

The survey has been presented in true & the best of my knowledge.

Avdhesh Yogi

2
 ACKNOWLEDGEMENT

I have conducted the project on” “A STUDY ON SALES PROMOTIONAL

ACTIVITIES WITH REFERENCE TO BINANI CEMENT LTD.”
I am highly obliged towards Mr. RAVINDRA SOMANI for encouraging me to be able
to best utilize my horizon of knowledge and skills into study the field of Marketing
Survey. His contest supervision and direction has helped me to seize fundamentals
of cement industries marketing operations.

I would like to pay my regards towards Mr. ALOK CHATURVEDI who equipped me
with the basis information about prevalent trends in industry and Mr. GAURAV
SHARMA for their cooperation during the major project. Their continuous guidance
and encouragement has helped me in accomplishing important tasks in multiple
areas.

I would like to thank Ms. SURUCHI SHARMA(HOD, MBA Deptt.) of MIMT, KOTA for
his guidance and enriching my thoughts in this field from different perspective.

I felt enormous changes within myself in tune with new environment and to face
challenging tasks and this become possible only with the invisible desire to teach me
personal and professional improvements Thank you to all the members here to
make my training period into a lifelong learning experience.

Avdhesh Yogi
MBA III sem.

3
 EXECUTIVE SUMMARY

It is vital to implement the learning into practical Scenario. The intelligence in its real
sense is how and when to apply the learning in the business context. In this regard I
am doing my project on I have conducted the project on” “A STUDY ON SALES
PROMOTIONAL ACTIVITIES WITH REFERENCE TO BINANI CEMENT LTD.”

Generally it is observed that if we don’t go for critical evaluation and designing new
things, it leads to increased monotony for the customers, decrease in motivational
level among employees and lack of appreciation towards the company.

Also, increased competition faced by the Company from its competitors compels the
company to continuously upgrade its service and offerings. These existing and newly
emerging Cement Companies grab the market share of the clients and hence pose a
threat to the business magnitude of the Binani Cement Limited.

The approach followed to fulfill the requirement of the report starts with studying and
understanding the present marketing strategies and programmes practiced in the
Company. Evaluating their effectiveness and thereby improvising on the existing
system if necessary.

Cement is one of the business sectors in the world and it is growing rapidly today so
that is why there is a need for the Cement organizations to the market their services
or products effectively in order to attract as many customers as possible.

To conclude the study, recommendations has been put forward as to how the
Company can improve the grab on the market and strengthen their activities for the
uncertain future.

Questionnaire, observation and personal interview with executives is used to collect

the primary data and secondary data is collected from the financial reports.

4
 CONTENTS
Preface/Prelude
Acknowledgement
Executive Summary
Chapter No Particulars Page No.

Chapter 1-: Introduction to the Cement Industry

Chapter 2: Manufacturing Process & Cement Industry
• Manufacturing Process
• Introduction of Cement Industry
• Types of Cements (Add in 1st chapter)

Chapter 3: Introduction of Binani Cement

• Binani Cement History

• Organizational Structure

• Awards & Achievements

• Business Subsidiaries

• Leadership

• Product Specification

• Social Responsibilities

Chapter4: Product Specification & Dispatch Process

• Product Specification

• Distribution Channel

Chapter 5: Brand Loyalty

• Brand Loyalty

• Evaluation of Corporate Branding ( Add in Chapter 3)

Chapter 6: Project Profile

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Chapter 7: Research Methodology

• Objective of the Study

• Type of research

• Duration of project

• Sample size & method of selecting sample

• Scope of study

• Limitations of study
• Theoretical Background

Chapter 8: Fact & Findings

Chapter 9: Analysis & Interpretation

Chapter 10: SWOT Analysis

Chapter 11: Conclusions

Chapter12: Suggestions & Recommendations

BIBLIOGRAPHY

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 Chapter-1 Introduction to Cement
Cement refers to material which acts as a binding substance. In construction and
civil engineering cement is used to bind structural members for construction of
buildings, pavements, bridges, tunnels, roads and highways etc.

How should cement be stored?

1. Cement bags should not be stored in an enclosed area where the

walls, roof and floor is not completely weatherproof.
2. Cement bags must not be stored in wet surroundings and humid
conditions.
3. Stack cement bags on wooden planks or concrete floor and do not
stack the against the wall.
4. Cement bags should be piled close together.
5. It is better to arrange the cement bags in a header and stretcher
fashion.
6. Cement bags that were stored first must be used first.
7. Cement bags must not be piled up in the field at work site, instead they
should be piled up on a raised platform and covered with a sheet

Types of cement:

1.Pozzolona Portland Cement

2.Ordinary Portland Cement

ORDINARY PORTLAND CEMENT-: OPC cement is made by heading a

mixture of limestone and clay or other materials of similar bulk composition and
sufficient reactivity ultimately to a temperature of 1450°C. partial fusion occurs and
nodules of clinker are product. The clinker is mixed with a few present of gypsum
and finely ground to make the cement. This cement develops a high strength in its
early stages and continues to grow stronger with the passage of time.

7
Used for all types of construction from side walls to high rise building,
bridges, roads, etc.

Grades 43 & 53 are used where greater strength is required e.g. for the manufacture
of pre stressed concrete, railway sleepers. Pre-cast products and for high strength
concrete. I RS-T-40-special grade cement developed for use in concrete sleepers to
meet the requirements of India railways, has higher fineness (3700cm2g) and seven
days compressive strength comparable to grade 53 (375kg./cm2)

Conforms to:

IS : 269 - 1989 : grade 33

IS : 8112 - 1989: grade 43

IS : 12269 - 1987: grade 53

PORTLAND POZZOLANA CEMENT (PPC)

Portland pozzolana cement (PPC) is produced either by grinding together Portland

cement clinker and pozzolana with addition of gypsum or by intimately and uniformly
blending Portland cement and fine pozzolana. Fly ash, calcined clays are generally
used as pozzolanas for manufacture of Portland pozzolana cement.

PPC provides improved workability, less segregation and blending, has increased
water tightness, and tendency of lime to separate. Further there is prevention of
damage due to alkali reaction in concrete made from PPC and in durability of
structure in sulphate containing waters. It has low hest of hydration. PPC is used in
construction of dams, dykes, sewage pipes, etc.

SOME OTHER TYPES ARE-HYDROPHOBIC CEMENT

In some of the country, where humidity is high, cement may form lumps and
deteriorate in strength on prolonged storage by use of hydrophobic agents, it is
clamed that deterioration of cement on prolonged storage is arrested. Resistance to
moisture penetrating by hydrophobic cement is noteworthy.

Conforms to : IS : 80430 - 1991

8
 MASONARY CEMENT

Masonary cement is a product obtained by intergrinding a mixture of portland cement

clinker with inert material such as limestone dolomite and gypsum and air-entraining
plasticizer in suitable proportions. Masonary cement possesses grater plasticity and
water receptivity than the OPC.

Masonary cement is used in mortars for brick, stone and concrete block masonary,
as well as for rendering and plastering work. Because of its properties of producing a
smooth, plastic, cohesive and strong, yet workable mortar when mixed with lime
aggregates, masonary cement is considered superior to lime mortar, lime cement of
straight cement mortar.

However masonary cement is not extended for use in structural concrete, flooring
and foundation work or for reinforced and prestressed concrete work.

Conforms to : JS : 12330 - 1988

OILL WELL CEMENT

Oil well cement is used by the petroleum industry for cementing gas & Oil wells at
high temperatures and pressures. Slurries of such cement have to remain pump able
at these elevated temperature and pressure for a sufficient length of time and then
harden fairly rapidly. The two principal use of oil well cement are two cement steel
casing to the walls of the well and to the seal the porous formations which contain
either gas or water that is flowing in to oil bearing information with current
technology, oil wells are typically upto 6000 metre deep. the temperature of the rock
at the bottom of the well at the depth is 100 -250C.the pressure experienced by the
slurry during the pumping is equal to the hydrostatic load plus the pumping pressure,
and may be as much as 150 Mpa.

HIGH ALUMINA CEMENT

High alumina cement is refractory cement but in some cold regions, this may finds
use as structural material taking advantage of high heat of hydration and high clearly
streath development. Mortars of concrete made with alumnscement and are factory,

9
or heating resistance aggregate (such as crused fire brick), do not6 creak or spell
during repeated frings to whiteheat and these could be safely quenched in water
without loss of stability. Over railway lines and for concreatpowers carrying industrial
affluent. It's heat of hydration is how as compared to OPC.

CONFORMS to : IS : 6909 – 1990

Sector structure/Market size

India is the world's second largest producer of cement with total capacity of 224
million tonnes (MT) as on April 30, 2010, according to the Cement
Manufactuer's Association.

During May 2010, the cement production touched 14.50 MT as compared to

13.28 MT in May 2009. The cement despaches quantity was 14.21 MT in May
2010 over 13.06 MT in the corresponding month in May 2009.

Moreover, the government's continued thrust on infrastructure will help the key
building material to maintain an annual growth of 9-10 per cent in 2010,
according to India's largest cement company, ACC. In January 2010, rating
agency Fitch predicted that the country will add about 50 million tonne cement
capacity in 2010, taking the total to around 300 million tonne.

Further, speaking at the Green Cementech 2010, a seminar jointly organised by

the Confederation of Indian Industry (CII) and the Cement Manufacturer's
Association in Hyderabad in May 2010, G Jayaraman, Executive President,
Birla Corporation Ltd, said that in 2009, 40 MT of capacity was added and he
expects a similar trend to follow this year.

New Investments

• Cement and gypsum products have received cumulative foreign direct

10
investment (FDI) of US$ 1708.69 million between April 2000 and March 2010,
according to the Department of Industrial Policy and Promotion.
• Madras Cements Ltd is planning to invest US$ 178.4 million to increase
the manufacturing capacity of its Ariyalur plant in Tamil Nadu to 4.5 MT from 2
MT by April 2011.
• Surya Group plans to invest US$ 873.3 million in a new 5 million MT
cement plan to be set up in Gujarat.
• My Home Industries Limited (MHI), a 50:50 joint venture (JV) between
the Hyderabad-based My Home Group and Ireland's building material major
CRH Plc, plans to scale up its cement production capacity from the existing 5
million tonne per annum (mtpa) to 15 mtpa by 2016. The company would
undertake this capacity expansion at a cost of US$ 1 billion.
• Shree Cement, plans to invest US$ 97.13 million this year to set up a 1.5
million MT clinker and grinding unit in Rajasthan. Moreover, in June 2010,
Shree Cement signed a memorandum of understanding (MoU) with the
Karnataka government to invest US$ 423.6 million for setting up a cement unit
and a power plant. US$ 317.7 million will be used to set up a cement
manufacturing unit with an annual capacity of 3 mtpa while the balance will be
for the 100 mega watt power plant.
• Jaiprakash Associates plans to invest US$ 640 million to increase its
cement capacity.
• Swiss cement company Holcim plans to invest US$ 1 billion in setting up
2-3 greenfield manufacturing plants in the country in the next five years to serve
the rising domestic demand. Holcim is present in the country through ACC and
Ambuja Cements and holds around 46 per cent stake in each company. While
ACC operates 16 cement plants, Ambuja Cements controls five plants in India.
The Aditya Birla group is the largest cement-making group by capacity in the
country and controls Grasim Industries and Ultratech Cement.

Mergers and Acquistion (M&A), PE deals

• KKR- Dalmia Cement signed a deal worth US$ 159.57 million in May 2010.

French cement company Vicat acquired a 51 per cent stake in Bharathi Cement

11
Company Ltd, promoted by Y S Jagan Mohan Reddy, Member of Parliament, to tap
the southern markets, which represent 40 per cent of the total Indian cement
Cement refers to material which acts as a binding substance. In construction and
civil engineering cement is used to bind structural members for construction of
buildings, pavements, bridges, tunnels, roads and highways etc.

• Cement bags should not be stored in an enclosed area where the walls, roof
and floor is not completely weatherproof.
• Cement bags must not be stored in wet surroundings and humid conditions.
• Stack cement bags on wooden planks or concrete floor and do not stack the
against the wall.
• Cement bags should be piled close together.
• It is better to arrange the cement bags in a header and stretcher fashion.
• Cement bags that were stored first must be used first.
• Cement bags must not be piled up in the field at work site, instead they
should be piled up on a raised platform and covered with a sheet.

India is the world's second largest producer of cement with total capacity of 224
million tonnes (MT) as on April 30, 2010, according to the Cement Manufactuer's
Association. During May 2010, the cement production touched 14.50 MT as
compared to 13.28 MT in May 2009. The cement despaches quantity was 14.21 MT
in May 2010 over 13.06 MT in the corresponding month in May 2009.

Moreover, the government's continued thrust on infrastructure will help the key
building material to maintain an annual growth of 9-10 per cent in 2010, according to
India's largest cement company, ACC.

In January 2010, rating agency Fitch predicted that the country will add about 50
million tonne cement capacity in 2010, taking the total to around 300 million tonne.

Further, speaking at the Green Cementech 2010, a seminar jointly organised by

the Confederation of Indian Industry (CII) and the Cement Manufacturer's
Association in Hyderabad in May 2010, G Jayaraman, Executive President, Birla
Corporation Ltd, said that in 2009, 40 MT of capacity was added and he expects a

12
similar trend to follow this year.

• Cement and gypsum products have received cumulative foreign direct

investment (FDI) of US$ 1708.69 million between April 2000 and March 2010,
according to the Department of Industrial Policy and Promotion.
• Madras Cements Ltd is planning to invest US$ 178.4 million to increase the
manufacturing capacity of its Ariyalur plant in Tamil Nadu to 4.5 MT from 2
MT by April 2011.
• Surya Group plans to invest US$ 873.3 million in a new 5 million MT cement
plan to be set up in Gujarat.
• My Home Industries Limited (MHI), a 50:50 joint venture (JV) between the
Hyderabad-based My Home Group and Ireland's building material major CRH
Plc, plans to scale up its cement production capacity from the existing 5
million tonne per annum (mtpa) to 15 mtpa by 2016. The company would
undertake this capacity expansion at a cost of US$ 1 billion.

• Shree Cement, plans to invest US$ 97.13 million this year to set up a 1.5
million MT clinker and grinding unit in Rajasthan. Moreover, in June 2010,
Shree Cement signed a memorandum of understanding (MoU) with the
Karnataka government to invest US$ 423.6 million for setting up a cement
unit and a power plant. US$ 317.7 million will be used to set up a cement
manufacturing unit with an annual capacity of 3 mtpa while the balance
will be for the 100 mega watt power plant.

• Jaiprakash Associates plans to invest US$ 640 million to increase its cement
capacity.
• Swiss cement company Holcim plans to invest US$ 1 billion in setting up 2-3
greenfield manufacturing plants in the country in the next five years to serve
the rising domestic demand. Holcim is present in the country through ACC
and Ambuja Cements and holds around 46 per cent stake in each company.
While ACC operates 16 cement plants, Ambuja Cements controls five plants
in India. The Aditya Birla group is the largest cement-making group by
capacity in the country and controls Grasim Industries and Ultratech Cement.

13
 • KKR- Dalmia Cement signed a deal worth US$ 159.57 million in May 2010.
• French cement company Vicat acquired a 51 per cent stake in Bharathi
Cement Company Ltd, promoted by Y S Jagan Mohan Reddy, Member of
Parliament, to tap the southern markets, which represent 40 per cent of the
total Indian cement
• market.

Government Initiatives

The cement industry is pushing for increased use of cement in highway and road
construction. The Ministry of Road Transport and Highways has planned to invest
US$ 354 billion in road infrastructure by 2012. Housing, infrastructure projects and
the nascent trend of concrete roads would continue to accelerate the consumption
of cement.

• Increased infrastructure spending has been a key focus area. In the Union
Budget 2010-11, US$ 37.4 billion has been provided for infrastructure
development.

The government has also increased budgetary allocation for roads by 13 per cent to
US$ 4.3 billion. Exchange rate used: 1 USD = 46.33 INR (as on June 2010)

Chapter 2-: Manufacturing Process of cement

14
Cement history:

Throughout history, cementing materials have played a vital role. They were
used widely in the ancient world. The Egyptians used calcined gypsum as a
cement. The Greeks and Romans used lime made by heating limestone and
added sand to make mortar, with coarser stones for concrete.

The Romans found that a cement could be made which set under water and
this was used for the construction of harbours. The cement was made by
adding crushed volcanic ash to lime and was later called a "pozzolanic"
cement, named after the village of Pozzuoli near Vesuvius.

In places such as Britain, where volcanic ash was scarce, crushed brick or
tile was used instead. The Romans were therefore probably the first to
manipulate the properties of cementitious materials for specific applications

15
and situations.

Hadrian's Wall, England, a few miles east of House steads.

Marcus Vitruvius Pollio, a Roman architect and engineer in the 1st century
BC wrote his "Ten books of Architecture" - a revealing historical insight into
ancient technology. Writing about concrete floors, for example:

"First I shall begin with the concrete flooring, which is the most important of
the polished finishings, observing that great pains and the utmost precaution
must be taken to ensure its durability". "On this, lay the nucleus, consisting
of pounded tile mixed with lime in the proportions of three parts to one, and
forming a layer not less than six digits thick."

And on pozzolana:

"There is also a kind of powder from which natural causes produces

astonishing results. This substance, when mixed with lime and rubble, not
only lends strength to buildings of other kinds, but even when piers are
constructed of it in the sea, they set hard under water."

(Vitruvius, "The Ten Books of Architecture," Dover Publications, 1960.)

His "Ten books of Architecture" are a real historical gem bringing together
history and technology. Anyone wishing to follow his instructions might first

16
need to find a thousand or so slaves to dig, saw, pound and polish...

After the Romans, there was a general loss in building skills in Europe,
particularly with regard to cement.

Mortars hardened mainly by carbonation of lime, a slow process. The use of

pozzolana was rediscovered in the late Middle Ages.

The great mediaeval cathedrals, such as Durham, Lincoln and Rochester in

England and Chartres and Rheims in France, were clearly built by highly
skilled masons. Despite this, it would probably be fair to say they did not have
the technology to manipulate the properties of cementitious materials in the
way the Romans had done a thousand years earlier.

The Renaissance and Age of Enlightenment brought new ways of thinking,

which for better or worse, led to the industrial revolution. In eighteenth
century Britain, the interests of industry and empire coincided, with the need
to build lighthouses on exposed rocks to prevent shipping losses. The
constant loss of merchant ships and warships drove cement technology
forwards.

Smeaton, building the third Eddystone lighthouse (1759) off the coast of
Cornwall in Southwestern England, found that a mix of lime, clay and
crushed slag from iron-making produced a mortar which hardened under
water. Joseph Aspdin took out a patent in 1824 for "Portland Cement," a
material he produced by firing finely-ground clay and limestone until the
limestone was calcined. He called it Portland Cement because the concrete
made from it looked like Portland stone, a widely-used building stone in
England.

While Aspdin is usually regarded as the inventor of Portland cement,

Aspdin's cement was not produced at a high-enough temperature to be the
real forerunner of modern Portland Cement.

Nevertheless, his was a major innovation and subsequent progress could be

17
viewed as mere development.

A ship carrying barrels of Aspdin's cement sank off the Isle of Sheppey in
Kent, England, and the barrels of set cement, minus the wooden staves,
were later incorporated into a pub in Sheerness and are still there now. A few
years later, in 1845, Isaac Johnson made the first modern Portland Cement
by firing a mixture of chalk and clay at much higher temperatures, similar to
those used today.

At these temperatures (1400C-1500C), clinkering occurs and minerals form

which are very reactive and more strongly cementitious.

While Johnson used the same materials to make Portland cement as we use
now, three important developments in the manufacturing process lead to
modern Portland cement:

- Development of rotary kilns

- Addition of gypsum to control setting

- Use of ball mills to grind clinker and raw materials

Rotary kilns gradually replaced the original vertical shaft kilns used for
making lime from the 1890s. Rotary kilns heat the clinker mainly by radiative
heat transfer and this is more efficient at higher temperatures, enabling
higher burning temperatures to be achieved. Also, because the clinker is
constantly moving within the kiln, a fairly uniform clinkering temperature is
achieved in the hottest part of the kiln, the burning zone.

The two other principal technical developments, gypsum addition to control

setting and the use of ball mills to grind the clinker, were also introduced at
around the end of the 19th century.

18
 Cement Industry in India:

India, being the second largest cement producer in the world after China with
a total capacity of 151.2 Million Tones (MT), has got a huge cement industry.
With the government of India giving boost to various infrastructure projects,
housing facilities and road networks, the cement industry in India is currently
growing at an enviable pace. More growth in the Indian cement industry is
expected in the coming years.

The cement industry in India is dominated by around 20 companies, which

account for almost 70% of the total cement production in India. In the present
year, the Indian cement companies have produced 11 MT cement during

April-September 2009. It took the total cement production in FY09 to 231MT.

Industry Background:
The history of the cement industry in India dates back to the 1889 when a
Kolkata-based company started manufacturing cement from Argillaceous. But
the industry started getting the organized shape in the early 1900s. In 1914,
India Cement Company Ltd was established in Porbandar with a capacity of
10,000 tons and production of 1000 installed. The World War I gave the first
initial thrust to the cement industry in India and the industry started growing at
a fast rate in terms of production, manufacturing units, and installed capacity.
This stage was referred to as the Nascent Stage of Indian Cement Industry. In
1927, Concrete Association of India was set up to create public awareness on
the utility of cement as well as to propagate cement consumption.

The cement industry in India saw the price and distribution control system in
the year 1956, established to ensure fair price model for consumers as well as
manufacturers. Later in 1977, government authorized new manufacturing units
(as well as existing units going for capacity enhancement) to put a higher price
tag for their products. A couple of years later, government introduced a three-
tier pricing system with different pricing on cement produced in high, medium
and low cost plants. Cement industry, in any country, plays a major role in the
growth of the nation.

19
Cement industry in India was under full control and supervision of the
government. However, it got relief at a large extent after the economic reform.
But government interference, especially in the pricing, is still evident in India.

In spite of being the second largest cement producer in the world, India falls in
the list of lowest per capita consumption of cement with 125 kg. The reason
behind this is the poor rural people who mostly live in mud huts and cannot
afford to have the commodity. Despite the fact, the demand and supply of
cement in India has grown up. In a fast developing economy like India, there is
always large possibility of expansion of cement industry.

Cement Industry in India

• Jobs in Cement Industry

• L & T Cement Plants
• ACC Ltd. Cement Plants
• CCI Cement Plants
• Export of Indian Cement
• Types of Cement in India
• Gujarat Ambuja Plants in India
• Top 10 Companies
• Top 10 Cement Companies
• Mangalam Cement
• J K Lakshmi Cement
• J K Cement
• Madras Cement
• India Cements
• Sanghi Industries
• Dalmia Cement
• ITD Cementation India
• Dalmia Cement Bharat
• Gujarat Ambuja Cements

20
Cement Production and Growth:
Domestic demand plays a major role in the fast growth of cement industry in
India. In fact the domestic demand of cement has surpassed the economic
growth rate of India. The cement consumption is expected to rise more than
22% by 2009-10 from 2007-08. In cement consumption, the state of
Maharashtra leads the table with 12.18% consumption, followed by Uttar
Pradesh. In terms of cement production, Andhra Pradesh leads the list with
14.72% of production, while Rajasthan remains at second position.

The production of cement in India grew at a rate of 9.1% during 2006-07

against the total production of 147.8 MT in the previous fiscal year. During
April to October 2008-09, the production of cement in India was 101.04 MT
comparing to 95.05 MT during the same period in the previous year. During
October 2009, the total cement production in India was 12.37 MT compared to
a production of 11.61 MT in the same month in the previous year. The cement
companies are also increasing their productions due to the high market
demand. The cement companies have seen a net profit growth rate of 85%.
With this huge success, the cement industry in India has contributed almost
8% to India's economic development.

.Technology Up-gradation:
Cement industry in India is currently going through a technological change as
a lot of upgradation and assimilation is taking place. Currently, almost 93% of
the total capacity is based entirely on the modern dry process, which is
considered as more environment-friendly. Only the rest 7% uses old wet and
semi-dry process technology. There is also a huge scope of waste heat
recovery in the cement plants, which lead to reduction in the emission level
and hence improves the environment.

Cement Dispatches:

Cement industry in India has successfully maintained almost total capacity

utilization levels, which resulted in maintaining a 10% growth rate. In 2006-07,
the total despatch was 155 MT, which rose up to 170 MT in 2007-08.

21
The month of October 2009 saw a cement despatch of 12.22 MT, which was
almost 9% higher than the total cement despatch of 11.21 MT in the same
month in the previous year.

2008-09 (Apr-Oct) (in 2007-08 (Apr-Oct) in

MT) MT
Production 101.04 95.05
Despatches (Excluding
100.24 94.33
Export)
Export 1.46 2.16
Capacity Utilization (%) 85 93

Major Players in Indian Cement Industry

There are a number of players prevailing in the cement industry in India. However,
there are around 20 big names that account for more than 70% of the total cement
production in India. The total installed capacity is distributed over around 129 plants,
owned by 54 major companies across the nation.

Following are some of the major names in the Indian cement industry:

Company Production Installed Capacity

ACC 17,902 18,640
Gujarat Ambuja 15,094 14,860
Ultratech 13,707 17,000
Grasim 14,649 14,115
India Cements 8,434 8,810
JK Group 6,174 6,680
Jaypee Group 6,316 6,531
Century 6,636 6,300
Madras Cements 4,550 5,470
Birla Corp. 5,150 5,113

Mergers and Acquisitions in Cement Industry in India

22
 • UltraTech Cement is going to absorb its sister concern Samruddhi Cement to
become biggest cement company in India.
• World's leading foreign funds like HSBC, ABN Amro, Fidelity, Emerging
Market Fund and Asset Management Fund have together bought 7.5% of
India Cements (ICL) at a cost of US$ 124.91 million.
• Cimpor, a Cement company of Portugal, has bought 53.63% stake that
Grasim Industries had in Shree Digvijay Cement.
• French cement company Vicat SA bought 6.67% share of Sagar Cement at a
cost of US$ 14.35 million.

Holcim now holds 56% stake of Ambuja Cement. Previously it held 22% of stake.
The company utilized various open market transactions to increase its stakes. It
invested US$ 1.8 billion for that. Total production

The cement industry comprises of 125 large cement plants with an installed capacity
of 148.28 million tonnes and more than 300 mini cement plants with an estimated
capacity of 11.10 million tonnes per annum.

The Cement Corporation of India, which is a Central Public Sector Undertaking, has
10 units. There are 10 large cement plants owned by various State Governments.
The total installed capacity in the country as a whole is 159.38 million tonnes. Actual
cement production in 2002-03 was 116.35 million tonnes as against a production of
106.90 million tonnes in 2001-02, registering a growth rate of 8.84%. Major players
in cement production are Ambuja cement, Aditya Cement, J K Cement and L & T
cement.

23
 Recent Investments in the Indian Cement Industry
• In a recent announcement, the second largest cement company in South
India, Dalmia Cement declared that it's going to invest more than US$ 652.6
million in the next 2-3 years to add 10 MT capacity.
• Anil Ambani-led Reliance Infrastructure is going to build up cement plants with
a total capacity of yearly 20 MT in the next 5 years. For this, the company will
invest US$ 2.1 billion.
• India Cements is going to set up 2 thermal power plants in Andhra Pradesh
and Tamil Nadu at a cost of US$ 104 billion.
• Anil Ambani-led Reliance Cementation is also going to set up a 5 MT
integrated cement plant in Maharashtra. It will invest US$ 463.2 million for
that.
• Rungta Mines are also planning to invest US$123 million for setting a plant of
1 MT production capacity.

*Jaiprakash Associates Ltd has signed a MoU with Assam Mineral Development
Corporation Limited to set up a 2 MT cement plant. The estimated project cost is
US$ 221.36 million.

Cement Industry in Rajasthan: Rajasthan is the largest producer of cement in

India. With a capacity of over 13 million tones per annum, Rajasthan accounts for
over 15% of Indias cement production. The cement industry in Rajasthan is
witnessing significant growth in recent years. Fresh capacity aggregating over 10
MMTPA is under various stages of implementation. With the domestic demand for
cement expected to grow at 8-9 per cent annually. The key strength of Rajasthan
cement industry is the presence of large limestone reserves, estimated to be over
2.5 billion tones. MS grade limestone of Jaisalmer district is supplied to various steel
plants of the country.

24
Currently, 15 major cement plants and 2 medium cement plants are in operation with
a total installed capacity of about 20.3 million tonnes per annum. Given the
availability of huge cement grade limestone reserves, more than 10 cement plants
will be installed in the State in near future, particularly in Chittorgarh, Kota,
Jhunjhunu, Nagaur and Pali.

Major Existing Cement Company in Rajasthan:

• Shree Cement

• Birla Cement

• Grasim Cement

• Ambuja Cement

• ACC Cements

• Bangur Cement

• Binani Cement

• Laxmi Cement

PROPERTIES OF CEMENT

{A} PHYSICAL PROPERTIES

The following factors are examined to appraise the physical properties of cement :

• Fineness

o Sieve residue

25
 o Specific surface

• Setting time

• Soundness

• Compressive strength

• Head of hydration

FINENESS :-
Sieve residue :

The quality of cement depended to a great extent on the fineness of grinding. Finely
ground cement has a higher initial strength then coarsely ground cement.

Specific Surface :

The Specific surface of cement in Cm2/gm in calculate from the air permeability of a
bed of cement, its porosity, the density of the cement and the viscosity of air. The
measure of the permeability is the time it takes for a certain quality of air to flow
through the bed under specified condition. The air permeability method according to
blain is mostly used in cement industry.

{B} CHEMICAL PROPERTIES

The various chemical characteristics which !:lave influence on the quality of cement
are :

• Lime saturation factor (LSF)

• Alumina Modulus (A/F) Insoluble Residue (IR)

• Loss on Ignition (LOI) Magnesia (MGO)

• Sulphate as S03

• Mineral Composition (C3S2 C2S2C3A2C4AF)

• Free Lime (CaO f)

• Alkalis (as Na2O equivalent)

• Chloride (CI)

26
SETTING TIME :-

Cement sots and gives concrete sufficient strength within in reasonable time.
Obviously, in order to allow sufficient time for applying the mortar or placing the
concrete, cement must not set too quickly. It is also important that after mixing,
setting should be completed within a reasonable period, the setting times, initial and
final set are specified in India standard specification.

SOUNDNESS :-

Soundness is understood as the ability of the cement to maintain a constant volume.

Thus a cement is to be rated and sound if, after it has hardened, it remains free from
expansion effects which may, loosen and destroy the hardened paste.

STRENGTH REQUIREMENTS :-

Depending upon its class and type, a cement should attain the compressive strength
required at one, three, seven and twenty eight days, which are not less then the
minimum specified in various cement standard. Because of very test methods
applicable, different cement standards are not entirely comparable. In general, lower
water cement, ratio and higher to proportion if cement result in higher strength.

HEAT OF HYDRATION :-
Ordinary Portland cement during the first four weeks of hardening liberates heat of
hydration of the extent of about 90 cal/gm. Where great message of concrete are
involved as in large hydraulic structures there is always a risk expansion shrinkage
cracks arising the thermal stresses created by the heat of hydration by dissipation of
the same. Law heat Portland cement liberates only 70 cal/gm. During the same
period and can be used without fear of such troubles.

27
 Chapter 3: Introduction of Binani Cement
Profile For Bianani Cement Ltd.
•
• Binani Cement Limited is engaged in the production and sales of cement and
clinker. The Company's products include ordinary Portland cement and
clinker. During the fiscal year ended March 31, 2010 (fiscal 2010), the
Company produced 52.80 lac metric tons of cement. In December 2009, the
Company commissioned a cement mill of 110 throughput per hour (TPH)
capacity. The Company's overseas projects include Shandong Binani
Rong’An Cement Co. Ltd., China (SBRCC) and Binani Cement Factory LLC,
Dubai (BCFLLC). The Company focuses to set up a Greenfield Cement plant
of 2.5 million tons per annum capacity at Sutrapada in Gujarat. Its parent
company is Binani Industries Limited. The Company's subsidiaries include
Krishna Holdings Pte Limited, Mukundan Holdings Limited, Murari Holdings
Limited and Bhumi Resources ( Singapore ) Pte Limited.

Emergence of a Global Leader

At Binani Cement Limited, cement is not just a building material, but a means
to transform imagination and vision into reality. It is a catalyst that fuels growth
and development across the globe. Keeping this in mind, Binani Cement is set
to grow strategically across the globe and supply to emerging markets in
China, Dubai, Mauritius and East African countries.
Binani Cement is the flagship subsidiary of Binani Industries Limited, the Braj
Binani Group with global gross fixed asset value of Rs. 28077 million and
gross income of Rs. 25087 million for the year ended 31st March 2010. The
foundation of success was laid in 1997, when the company commenced

28
operations in Sirohi District, Rajasthan, after setting up a 1.65 mtpa integrated
cement facility and a 25 MW captive power plant with technological support
from F. L. Smidth, Denmark and Larsen & Toubro Ltd.

Not only was capacity raised to 2.25 mtpa in 2005 through advanced in-house
R&D and de-bottlenecking, but the company was certified as ISO 9001, ISO
14001 and OHSAS 18001 compliant within a short span of commencement an
achievement that clearly illustrates the management's commitment to quality,
efficiency, environment, health & safety.

In 2008, a split grinding unit at Neem Ka Thana was commissioned which

boosted the capacity in India to 6.25 mtpa. The clinker grinding unit at Neem
Ka Thana is located in Bhagega village, Sikar district of Rajasthan. Set up
with technical support from M/s F.L. Smidth, Denmark, the unit acquired
certifications such as ISO 9001, ISO 14001 & OHSAS 18001 for quality,
environment & OHS management systems in July 2009. Moreover, the unit
has obtained environment clearance from the Ministry of Environment &
Forests, New Delhi and all other relevant consents from the State Pollution
Control Board. Continuing in the expansion mode, today Binani Cement’s
global manufacturing capacity has touched 8.75MTPA, with plants located in
Dubai and China as well.
It is expected to grow upto 15 mtpa annually by 2011 through various
expansion projects undertaken across its plants in India and overseas.

29
 BINANI CEMENT LIMITED
CHAIRMAN'S SPEECH

(At the Annual General Meeting held on 26th June 2009)

Ladies and Gentlemen, I take great pleasure in welcoming you all to the 13th Annual
General Meeting of your Company. The Annual Accounts and Directors' Report of
the Company for the year ended 31st March, 2009 alongwith annual accounts of
subsidiaries have already been with you for sometime now and with your permission
I shall take them as read. At the outset, I would like to introduce you to the other
Directors of your Company present here today :

1. Mr. S. Padmakumar
2. Dr. V. C. Shah
3. Miss Nidhi Binani
4. Mr. V. Subramanian
5. Mr. P. Acharya
6. Mr. M. K. Chattopadhyaya
7. Mr. Ramkrishna Moogimane
8. Mr. Shishir Jain

The achievements and developments during the year, the threats, risks, concerns
and opportunities and review of performance of the Company has already been
explained in detail in the Directors’ Report and Management Discussion and

30
Analysis. Since the issue of the Annual Report reporting the performance of the
Company in the last year, there continues to be stability in fuel prices and demand
for Cement which will have a significant impact on the operations and profitability of
the Company and the Cement industry as a whole.

Performance in First Quarter :

The Company’s performance in the first two months of the first quarter of the current
fiscal has been satisfactory and the Company is expected to report satisfactory
profits during the first quarter.

Dividend

CHAIRMAN
Taking an overall view and the future expansion requirements , it has been
considered prudent to recommend a Dividend of 21% subject to the approval of the
shareholders present at the Meeting.

Expansion :

The Company is in the process of expanding its capacity upto 13 million MTPA of
Cement production in the next 2 to 3 years. The Company has signed an
Memorandum of Understanding with the Government of Gujarat for facilitation of
approvals, allocation of limestone mines etc for the Greenfield project in Gujarat. The
expansion of Dubai unit is nearing completion.

Conclusion

Before I conclude, I would like to express my sincere gratitude to the Institutions,

Banks and Shareholders of the Company for their support and confidence reposed in
the Company. I look forward to your continuing commitment and support in your
Company’s onward .Ladies and Gentlemen, I once again thank you all for sparing
your valuable time to attend this Meeting.

31
 BINANI HISTORY

1. Binani Industries Limited (BIL) is all set for growth. From the time of its
inception, BIL has been an ambitious organisation and this attribute has helped it
grow at a fast pace.

2. The Braj Binani Group traces its beginning to 1872, when Seth Pragdas
Binani, a trader in metal utensils, began an enterprise with his son Seth Mathuradas
to engage in the import and export of metals. The enterprise continued to grow from
strength to strength. The year 1941 marked an important phase in the evolution
when Seth Mathuradas' son Seth Govardhandas made a bold, but significant, move
from trading to manufacturing.

3. Binani Metal Works got rolling with a plant at Howrah. Taking on the mantle
from his father, it was during the reign of son Ghanshyam Binani, that Binani Zinc
was born. Leading from the front, the Company shifted its focus towards R&D thus
modernising and expanding its capacity. But it was with the advent of Mr. Braj Binani
and his dynamic leadership that the Company truly began to prosper and exploring
uncharted horizons.

4. Following the restructuring of the Braj Binani Group, from 1996-2004,Binani

Industries Limited (BIL) was founded to serve as the holding Company for Binani
Cement Limited, Binani Zinc Limited, Goa Glass Fibre Limited & BT Composites
Limited. Today, the Braj Binani Group is a multidimensional business conglomerate,
with an asset value of Rs. 1968 crores, a turnover of Rs. 2302 crores and a 1750-
strong work force. And with a clear focus to adapt and execute the best, the Braj
Binani Group has not only attained major internationally accepted certifications for its

32
 various ventures, but also has extended its reach well beyond Indian borders - to
UAE, China and is in the process of expanding into Africa and other countries.

5. BIL owes most of its success to its simple yet potent philosophy - honesty,
transparency, efficiency and its unflinching commitment to the customers, coupled
with an inherent determination to succeed. It is this vision that has dissolved all
boundaries and has set BIL on the never-ending path of growth and evolution.

Mission

1. Forge ahead as a world-class organisation in the core sector industry in India

and abroad.

2. Explore opportunities and enhance stakeholder value through ethical

practices. Relentlessly pursue the global movement for a 'customer-driven, quality-
oriented, socially-conscious' industrial corporation.

3. Adopt, adapt, assimilate and integrate technologies from global giants,

thereby offering value-added products and services.

4. Adhere to the highest standards in manufacturing; over and above stringent

environmental stipulations.

5. Pursue research and development activities diligently, consolidating on its

track record of innovation and breakthroughs in manufacturing practices on a state-
of the-art technology platform.

6. Promote human values at the forefront and nurture its people with a deep-
rooted sense of employee care, concern and commitment to people; them being
considered as assets of high intrinsic value.

ORGANIZATIONAL STRUCTURE DIAGRAM

33
34
 AWARDS AND ACHIVEMENTS
The triumph of commitment and integrity as pioneers in globalizing operations,
Binani has bagged a number of awards for its meritorious performance. The awards
endorse its indigenous attempts at energy conservation, pollution control
endeavours, productivity performance, export potential and sustained growth over a
period of time.

1990

The commitment of Binani Zinc towards environmental protection and its pollution
control efforts are rewarded by the 'kerala State Pollution Control Board' in 1990.

1991

Binani Zinc awarded with a 'Certificate of merit' by the 'Kerala State Pollution Control
Board' for achieving the second place among large scale industries in making
substantial and sustained efforts in Pollution Control.

1993

Binani Zinc awarded with a Certificate of Merit by the 'kerala State Pollution Control
Board' for achieving the first place among large scale industries in making
substantial and sustained efforts in Pollution Control.

Binani Zinc is the proud recipient of the 'Energy Conservation Award' for consecutive
five years from 1993 onwards.

1994

Blnani Zinc has been awarded the second 'Jawaharlal Nehru Memorial National
Award' by International Greenland Society for excellence in Indian Industries in
Energy Conservation.

1995

Binani Zinc been awarded the 'Certificate of Merit' by Govt. of Kerala in appreciation
of its best effort in the field of Energy Conservation.

35
 1996

Binani Zinc awarded the 'Certificate of Merit' by Govt. of Kerala in appreciation of its
best effort in the field of Energy Conservation.

1999

Binani Zinc receives the 'Industrial Safety Award' from the National Safety Council of
India for having the second lowest frequency rate of accidents recorded in Scheme
III.

The systematic and scientific approach throughout operations has earned Binani's
Glass Fibre plant, an ISO 9002 accreditation from Bureau Veritas Quality
International, (BVQI), UK.

Binani Zinc receives the 'Industry Excellence Award' instituted by the Institution of
Engineers, India, Cochin Local Chapter, the first prize for excellence in Energy
Conservation and R&D efforts.

Being a major foreign exchange earner in the country, Goa Glass Fibre Ltd. bags the
'Certificate of Export Recognition' from Chemicals and Allied Products Export.

Promotion Council (CAPEXIL) for 1998-99.

Goa Glass Fibre Limited receives the prestigious 'National Exports Award Certificate
of Merit' for its meritorious performance in exports during the year 1998-99.

 Binani Cement Limited made a noteworthy improvement in the production

costs, along with power and coal.

 Consumption for which it has won a 'National Award for Energy Consumption'.

 Binani Cement Limited receives the National Award for its excellence in
'Thermal Energy Performance' for two consecutive years 1999, 2000.

 Binani Cement Limited receives ISO 9002 and ISO 14001 Certification from
KMPG in January 1999 and October 1999 respectively.

 Binani Zinc receives the prestigious international accreditions, 'ISO 14001'

36
 and 'ISO 9001: 2000' Certification from Bureau Veritas Quality International for its
Environment Management System and Quality Management System.

 Amli Limestone Mine at the Binani Cement Limited bags the first place for the
'Mines Award' at the Mines Environment and Mineral Conservation Week, organized
by the Controller of mines (NZ) and the Indian Bereau of Mines, Ajmer.

 Focused training inputs on a variety of knowledge and skill upgradation

attempted. Achieved ............. man days per employee per year.

2001

 BVQI also certified Binani Zinc to be qualified for Social Accountability

Management System, SA 8000:1997 as well as OHSAS 18001:1999. Occupational
Health and Safety Assessment Series.

 Binani Zinc becomes the first Indian company to have been certified under the
four international accreditations, besides also following the '5s' housekeeping as a
management practice.

 Binani Zinc focused knowledge and skill upgradation and achieved record of 3
mandays per employee per year. An enviable track record... spread over six
decades.

37
 MILESTONE

1940s

 Binani Metal Works Limited founded on 25th of February, 1941 near Howrah,
in Kolkata by the Founder Chairman Late Seth Govardhandas Binani.

 The company entered into collaboration with Metal Distributors Limited and its
trading activities in India expanded and grew stronger.

1950s

 Binani's sets up its establishments in London, UK, for international trading,

indenting of non-ferrous metals, investments, leasing and other activities.

 The company went public for the first time in 1953.

1950s.

 Binani earned recognition as the largest importer and distributor of non-

ferrous metals in the country.

 In 1962 Binani entered into a technical and financial collaboration with

Cominco Limited Canada to form Cominco Binani Zinc Limited and created history
becoming the first Indian company to manufacture primary high-grade electrolytic
zinc in India in 1967

 It was the first Indian company to manufacture high-grade electrolytic zinc at

Binanipuram, Kerala in 1967

 By leveraging technology and keeping up with a burgeoning market, Binani

38
 Zinc Limited successfully increased its capacity from 12 kty to 20 kty

1980s

 Binani Zinc Limited further upgraded its technology with assistance from M/s
Lurgi, Germany

 Binani Zinc Limited commenced production of special high-grade electrolytic

zinc ingots with 99.995% purity

1990s

 Cominco Limited carted off its financial support from its operations in
alignment with their world policy. Cominco Binani Zinc was re-christened as Binani
Zinc Limited on 3rd March 1991.

 Diversification was necessary for growth and hence two sectors were
identified - Glass Fibre and Cement.

 Two Public Issues, one in February 1994 and the other in February 1995,
were undertaken to raise funds for the implementation of new projects. Both the
issues were oversubscribed.

 The company was re-christened as Binani Industries Limited in 1996

reflecting its status as a multi-divisional, multi-product and multi-locational company
driven by technology and professionalism

 In 1995 Binani Zinc entered into collaboration with M/s U.M. Engineering
Limited to adopt its state-of-the-art technology and increased its capacity to 30 kty

 The Glass Fibre Division of Binani Industries Limited commenced commercial

production at Colvale, Goa in March 1996 and was then the single largest glass fibre
plant in India

 Binani Cement Limited commenced commercial production in November 1997

at Pindwara, Rajasthan

 The Cement division was hived off in November 1997 and transferred to
Binani Cement Limited as a wholly owned subsidiary.

39
 Goa Glass Fibre Limited received an ISO 9002 accreditation from Bureau
Veritas Quality International Certification, UK in 1998.

 Binani Glass Fibre was hived off and transferred to Goa Glass Fibre Limited
on 1st October 1998 as a wholly owned subsidiary of BIL.

 Binani Cement Limited received an ISO 9002 and ISO 14001 Certification
from KPMG in January 1999 and October 1999 respectively.

2000-01

 Binani Zinc Limited received an ISO 14001 and an ISO 9001: 2000
Certification from Bureau Veritas Quality International for their Environment
Management System and Quality Management System respectively.

 Binani Zinc Limited adopted the '5s' housekeeping management practice and
tagged it with the international accreditation ISO 14001:1996. In April 2001, voluntary
commitment to quality was demonstrated by getting the international accreditation on
quality ISO 9001:2000. Leveraging people potential, Binani Zinc Limited became the
first company in the manufacturing sector to go for international accreditation.

The cement division of Binani was hived off and transferred to Binani Cement
Limited, a who owned subsidiary of Binani Industries Limited, on 1st November
1997. The plant has been set up in technical collaboration with F.L. Smith and Co.,
Denmark and Larsen and Toubro.

Commissioned in July 1997 with a capacity of 2.2 MTPA, the plant is strategically
located at Binanigram, Pindwara, a village in Sirohi in the state of Rajasthan. The
site is advantageous for its easy accessibility to superior grade limestone mines from
the Aravalli range of Pindwara belts.

Its location meets the demand of speedy deliveries, lesser freight cost, including the
ease of operations of both importing coal and exporting cement as it is in close
proximity to the port of Kandla. Sales are focused in the north India, Gujrat and
Rajasthan markets.

HISTORY OF BINANI

40
 A Tradition of innovation and success

Binani is now consolidating on its enviable track record. With over one and a quarter
century of success, Binani industries limited ranks within the first 20, amongst the top
200 large public limited companies in terms of capital output ratio, BIL has an
employee of around 2000 people.

It was in the turbulent times of 1872, when the ancestors of Binani, Seth Pragdas &
Seth Mathuradas Binani ventured into the trading of non-ferrous metals. Later on,
the son of Seth Mathuradas, Seth Govardhandas, a man with profound vision, saw
great potential in manufacturing rather than just trading in non-ferrous metals.

Binani Metals Works Limited in collaboration with Multicore Solders, UK came into
being in 1941. The plant was set up in Howrah, West Bengal to produce non-ferrous
alloys, cad, castings, powders & solder wires.

Trading operations, the forte of binani, was also getting stronger. An Antimony
Smelter joint venture in Bombay, was set up under the name of Binani Metal Works
Limited.

It was in the early 50's, that the Binani's ventured into the international market by
establishing Metal Distributors UK Limited in London, as a trading and indenting
house for non-ferrous metals.

Binani Metal Limited went public for the first time in 1953 .In 1962 Binani entered in
collaboration with world leaders in the field of non-ferrous metals, Cominco Limited
Canada to form Cominco Binani Zinc Limited and became the first producer of zinc
in India.

Simultaneously Binani also entered into a technical collaboration with Revere

Copper & Brass Inc, USA to produce Copper and Copper Alloy extrusions.

In 1967, Binani created a name in the world zinc industry, by pioneering the
manufacture of high grade electrolytic zinc in India. The reigns of this wide spreading
business were with Late Shri Ghanshyam binani, the only son of Seth Govardhandas
Binani. His individual expertise and time-honed skills steered the organization

41
towards many milestones ahead.

In the span of 1970's - 80's Cominco Binani Zinc Limited upgraded it's technology to
be on par with the latest in the world. It also became the first plant in the country to
commerce production of special high grade electrolytic zinc with 99.995% purity.

In 1983 a merger between binani Metal Works Limited & Metal Distributoes UK
Limited took place, forming Binani Metals Limited It became one of the largest
trading and indenting houses for non-ferrous metals in India.

On 3rd May 1991 Cominco Binani Zinc Limited was rechristened as Binani Zinc
Limited. The company diversified into other prominent industrial enterprises in 1996,
i.e. Binani Glass Fibre at Goa & Binani Cement Limited in Rajasthan. With such
diversification of the Binani Enterprise it was imperative to rechristen the company as
Binani Industries Limited. It now represents an amalgation of new aspirations, new
leader ship.

In 1998 following the true Binani tradition of growth and excellence, the mantle of
leadership passed on to the sons of the Late Shri Ghanshyam Bianani, Mr.Gokul
Binani, the captain of Binani International operations is the Chairman & Managing
Director of Metal Distributors, UK, while Mr. Braj Binani, is the Chairman and
Managing Director of Binani Industries Limited in India. In tune with its inherent
growth culture the Binani Industries Limited has undergone a thorough re-structuring
process. All the three divisions of Binani Industries Limited i.e. Zinc, Cement and
Glass Fibre have been gradually hived off as wholly owned subsidiaries.

• Binani Cement Limited - effective from 1st November 1997.

• Goa Glass Fibre Limited - effective from 1st December 1999.

• Binani Zinc Limited - effective from 1st April 2001.

Expansion plans are on the cards for zinc and cement.

LEADERSHIP

42
Sterling Achievement Since 1872

The Binani Group has a board comprising of eminent individuals from diverse fields.
Headed by Mr. Braj Binani, it acts with independence in exercising strategic
supervision, discharging its fiduciary responsibilities with professionalism. The board
acts as the standard-bearer for the company, ensuring that the management
observes the highest standards of ethics, transparency and governance.

At the age of 49, Mr. Braj Binani is a pioneer in every sense. He has been the
architect of the growth and development of the Braj Binani Group. His rich
entrepreneurial skills with long years of industrial experience and knowledge in
commodity business have taken the Braj Binani Group to unfathomable heights and
is all set to keep rising higher.

PRODUCT SPECIFICATION
Products
The Company's product portfolio includes Ordinary Portland Cement and Pozzolana
Portland Cement. Marketed under the premium ‘Binani Cement’ brand name, it has
become a name synonymous with cement in India. And with subsidiaries in Dubai,
China and many other potential international markets, Binani Cement is well and
truly set on the path of becoming a brand the world builds with.

Binani Cement Ltd. produces cement of two grades:

• Grade 43
• Grade 53
• PPC (Portland Pozzolana Cement)

43
 PRODUCT SPECIFICATIONS

BIS BS ASTM GERMANY JAPAN BINANI CEMENT

43 53 C-150
Specifications BS-12 OPC-I OPC-II 43 Grade 53 Grade
Grade Grade T-1
LOI (%) max 5.00 4.00 3.00 3.00 5.00 5.00 3.00 2.30 2.10
IR (%) max 3.00 3.00 1.50 0.75 3.00 3.00 - 2.10 2.00
SO3 (%) max 3.00 3.00 3.50 3.00 3.50 3.50 3.00 2.10 2.00
MgO (%) max 6.00 6.00 4.00 6.00 5.00 5.00 5.00 1.98 1.98
Blaine (M2 / kg)
225 225 275 280 220 220 250 300 320
max
Setting Time
(Mins)
- Initial
30 30 45 45 60 60 60 125 120
(Minimum)
- Final
600 600 600 375 720 720 600 175 170
(Minimum)
Soundness
- Le-Chatelier
(mm) 10 10 10 - - - - 1.00 1.00
Maximum
- Auto Clave (%)
0.80 0.80 - 0.80 - - - 0.10 0.10
Maximum
Compressive
Strength (MPa)
- 3 days min 23.0 27.0 25.0 12.7 - - 7.0 42.0 41.0
- 7 days min 33.0 37.0 - 19.70 18.4 - 15.0 52.0 53.0
42.5 - 35.7 - 35.7 -
- 28 days min 43.0 53.0 28.2 30.0 62.0 65.0
62.5 56.1 56.1

BINANI CEMENT LIMITED

Sector CementCement - Cement
BSE:532849 NSE:BINANICEM Bloomberg:BINC@IN Reuters:BINC.BO
Market Lot: 1 Face Value: 10 ISIN Demat: INE042H01019

BRIEF FINANCIAL

44
Brief Financials (in Rs. Mn.)

Period ending (months) 31-Mar-2010 (12) 31-Mar-2009 (12) 31-Mar-2008 (12)

Net sales 18510.50 14897.80 9786.70
Other Income 154.40 53.70 131.40
Total Income 18664.90 14951.50 9918.10
Cost of goods sold 12803.70 11963.10 6448.40
OPBDIT 5861.20 2988.40 3469.70
PAT 2819.10 1086.60 1758.10
Gross Block - - -
Equity capital 2031.00 2031.00 2031.00
EPS (Rs.) 13.88 5.35 8.66
DPS (Rs.) - - -
BV (Rs.) - - -
P/E range (x) 2.11 - 6.12 4.66 - 16.73 6.78 - 15.01
Debt / Equity (x) - - -
Operating margin (% of OI) 31.4 20.0 35.0
Net margin (% of OI) 15.1 7.3 17.7

BINANI INDUSTRIES SUBSIDERIES

Group Businesses

45
BIL's epic story has been a unique compilation of the success stories of its four
subsidiary companies- Binani Cement Limited, Binani Zinc Limited, Goa Glass Fibre
Limited and BT Composites Limited. It is moving ahead full stream in the direction of
development and these companies have indeed formed the pillars of strength of the
Braj Binani Group.

SOCIAL RESPONSIBILITY

Limitless possibilities in the field of development, growth and expansion have helped
BIL realize its responsibility towards society and its role in giving impetus to social
initiatives. The Company has made every possible attempt to support various causes
that it believes will help in creating an environment that is more sustainable and
enterprising.

Corporate Social Responsibility

The Braj Binani Group is a multifaceted organisation in the truest sense of the word.
Its philanthropic philosophy has seen it promoting several schools, colleges,
libraries, educational institutes and noteworthy institutions throughout the country.

Some CSR initiatives :

46
• Instituted an award through the National Metallurgical Institute for
outstanding achievement in this field through its charitable body.

• BCL Trust, periodically conducts free eye camps, offers donations and also
provides scholarships to the underprivileged through its other charitable body.

• In another notable initiative, the group has instituted the ‘Ghanshyam Binani
Children's Bravery Award’, an annual award event.

The group also keenly promotes the well-being of its employees by building housing
complexes, schools, hospitals, community centres and picturesque gardens.

INDIAN STANDARD SPECIFICATIONS

Ordinary Portland cement - 33 grade IS 269 1989
High strength ordinary Portland cement
- 43 grade
- 53 grade IS 8112 1989
IS 12269 1987
Portland Pozzolana cement IS 1489 1991
Portland blast furnace stag cement IS 455 1989
High Alumina Cement for Structural use IS 6452 1989
Rapid hardening Portland cement IS 8041 1990
Oil well cement IS 8229 1986
Sulphate resisting Portland cement IS 12330 1988
Low heat Portland cement IS 12600 1989
White Portland Cement IS 8042 1989
Super sulphated cement IS 6909 1990
Hydrophobic cement IS 8043 1991
Masonary cement IS 3466 1967

47
 Chapter4: Product Specification & Dispatch Process

BINANI
BIS BS ASTM GERMANY JAPAN
CEMENT
43 53 BS-12 C-150 OPC-I OPC- 43 53
Specifications
Grade Grade T-1 II Grade Grade
LOI (%) max 5.00 4.00 3.00 3.00 5.00 5.00 3.00 2.30 2.10
IR (%) max 3.00 3.00 1.50 0.75 3.00 3.00 - 2.10 2.00
SO3 (%) max 3.00 3.00 3.50 3.00 3.50 3.50 3.00 2.10 2.00
MgO (%) max 6.00 6.00 4.00 6.00 5.00 5.00 5.00 1.98 1.98
Blaine (M2/Kg.) 225 225 275 280 220 220 250 300 320
max
Setting Time
(Mins)
- Initial 30 30 45 45 60 60 60 125 120
(Minimum)
- Final 600 600 600 375 720 720 600 175 170
(Minimum)
Soundness
- Le-Chatelier 10 10 10 - - - - 1.00 1.00
(mm) Maximum
- Auto Clave 0.80 0.80 - 0.80 - - - 0.10 0.10
(%) Maximum
Compressive
Strength (MPa)
- 3 days min 23.0 27.0 25.0 12.7 - - 7.0 42.0 41.0
- 7 days min 33.0 37.0 - 19.70 18.4 - 15.0 52.0 53.0
43.0 53.0 42.5 - 28.2 35.7 - 35.7 - 30.0 62.0 65.0
- 28 days min
62.5 56.1 56.1

48
 PROCESS OF DISPATCH

Dispatching is the one of the important function of marketing which operate inside
the company, it done in favor of goods receipt brought from the transporter on which
truck number, cement, grade, quality and number and of consignor is mentioned
clearly.

Empty trucks are brought to dispatch officer where they prepare delivery order
bearing number, date, time, expire date name and place of consignor quantity a
grade, transporters name which, then came to security man who verify truck no. and
also check whether truck is physically present in the campus or not at a time of entry.

Tare weight is taken and remarked on delivery order number after number arriving of
truck in loading yard following entry is made track number, delivery number, tons,
grade number, time which is checked by tally checker and guide the truck in
particular yard.

According to grade number he also maintain the records of bags on truck which is
checked at parking plant check post gross weight is taken during the return journey.
Loaded trucks are parked at one side & order goods receipts are carried to dispatch
office where gross weight, net weight and tare weight are checked.

STATE WISE DISPATCH OF CEMENT

STATE PERCENTAGE
Rajasthan 45%
Gujrat 30%
Delhi 5%
Punjab 5%
U.P. 2%
Haryana 11%
Jammu 2%

49
 4

45%

40%

35%

30%
tage

50 25%
KOkota
urban

S. No. Name of Party Destination Contact no. Name Of Phone No.

Person Mobile No. STD Office Res.
1 Radhika steels & KUNHARI 9829111996 GANESH 261478
cement suppliers CHOUHAN 9829111996 744 0
2 NAMA CEMENT RANGBARI 9460492 GIRDHAR 9460492551 744 265286
AGENCY 551 NAMA 2
3 AMERIYA BUILDING MAHAVEER 9314542355 94140-44683 265967
MATERIAL NAGAR 3 744 0
4 ROSHAN TRADRS SANTOSHI 9829234680 RAM AVTAR 93145-05940 269303 2596657
NAGAR DHOOT 744 2
5 DINESH CEMENT RAWATBHA 9414890780 DINESH 94147-83838 2690695
AGENCY TA ROAD JOSHI 744
6 MALAV TRADERS KESHAVPU 9352654345 VINOD 93142-85114 302198 2630332
RA MALAV 774 2
7 AGARWAL JAWAHAR 9413240590 VIKAS 9414231033 269358
TRADERS NAGAR AGARWAL 744 9
8 GOVIND STEEL LAXMI 9887675430 GOVIND 93149-64011 264250 2641642
WORKS NAGAR GOYAL 744 1
9 JIWNANI BUILDING SHOPPING 8058760564 VIJAY 9636055000/ 327706 2600650
MATERIAL CENTRE JIVANANI 93140-60065 744 5
10 MAHAVEER VIVEKANAN 9928780980 9314023304 321868
TRADERS D NAGAR SANJAY 774 2
11 PIYUSH TRADING AERODROM 9314662342 RAMAVATA 98291-34976 269245 2691077
COMPANY E R NAGAR 744 3
12 MUNDRA TRADERS VEER 9414800980 MUKESH 9929713067
SAVARKAR MUNDRA
NAGAR
13 SHRI SHYAM DCM ROAD 9983453458 SHYAM JI 93144-25771 556090
CEMENT DHAKAD 9
SUPPLIERS 744
14 SINNGHVI BORKHERA 9414190130 SANJAY 94145-10540 35233
ENTERPISES SINGHAVI 744 08
15 SUKESH TRADERS PRATAP 9829134590 PADAM JAIN 98281-26236
NGR 141
Name of Party Destination Phone No.
STD
Name of COD
Person Mobile No. E Office Residence
1 JAGDAMBA RANGPUR 9214347688 RAMDAS
TRADERS GUPTA 99834-01153
2 KAILASH TRADERS RANPUR 9829197865 KAILASH 982814
CHAND 94143-36096 1429 4993 253128
3 KHANDELWAL TALEDA 9414221180
CEMENT PRADEEP 258812 93513-
AGENCY KUMAR 99286-11828 141 3 12166
4 KHUSHI CEMENT BORKHERA 9352345670 VIMAL 98293-
AGENCY PAREEK 98297-82485 02773
5 MAHAVEER KUMAR SHIVDASPU 9509430987 MAHAVEER 99839- 99508-
JAIN RA JAIN 98292-72499 62900 41241
6 MEENA CEMENT NANTA 9694940911
AGENCY BABU LAL 98295-34073
7 NATANI TRADERS DAABI 9799216769 SHANKAR
LAL 94142-96064 742 243110 243110
8 PRAJAPATI SISVALI 9828167580 VINOD 94144- 92149-
TRADERS SHARMA 94143-43259 1429 09477 32129
9 NATH BUILDING ANTA 0744- 3524562
MATERIAL 98294-70487 744 241472

51
 DUMP VISITED LIST

Local
S. Concer Handling Teleph Telep Handling Visited
No Brand Tel. No. ned Agent one Transporter hone Rate Mo Telephone by
1 Ultra- 946000 Basant S.S 941404 S.S No Mo Sundeep
Tech 3936 kumar Enterprises 44844 Enterprises kumar
Maroliy (Mahesh
a Gupta)
2 J.K.(L) 982928 Daram Mr. Adarsh 982901 Mr. Adarsh 98290 28 Mr. 982901016 Sundeep
5070 pal ji Singhaniya 0160 Sighaniya 10160 Adarsh 0 kumar
Sighani
ya
3 A.C.C Ravindr Mr. Shyam 935136 Ravindra 93513 Sundeep
a Sunder 7757 Bhardwaj 67757 kumar
Bhardw
aj
4 Birla 992801 Kanha Sharda 992801 Sharda 99280 Sundeep
Uttam 4407 ram Sales 4407 Sales 14407 kumar
Yadav
5 Tuff 941477 Harlal Harlal Singh 941477 Harlal Singh 94147 Gayan Sundeep
Cement 2640 Singh 2640 72640 Aggarw kumar
o al ji
6 Ambuja 979939 Vijay ji Indeer 982801 Indeer No No Mo Sundeep
3313 Kumar 1508 Kumar Daga kumar
Daga
7 J.K(N) Mahes Bhaiya No Bhaiya No No Mo Sundeep
h ji Freight Freight kumar
Sharma
8 Birla 0141- R.S. Ashok 0744- Ashok 0744- Ashok 0141- Sundeep
Chettak 225034 Mathur Kalani 238944 Kalani 23894 Kalani 2389440 kumar
3 0 40
9 Shree Bhagchand 941401 Bhagchand 94140 Sundeep
Cement Jain 5773 Jain 15773 kumar
10 Bangur 921400 Rajesh Bhagchand 941401 Gopal No Ritesh 921431540 Sundeep
8504 ji Jain 5773 pandit Numb Enterpri 2 kumar
er ses
11 Shree 921431 Rohites Rohitesh 921431 Rohitesh 92143 No Mo Sundeep
Cement 5406 h Singh Singh 5406 Singh 15406 kumar
12 Bangur 921431 Rohites Rohitesh 921431 Gopal No Ritesh 921431540 Sundeep
5406 h Singh Singh 5406 pandit Numb Enterpri 2 kumar
er ses
13 Ultra- 0141- Shyam Mahesh 941404 Mahesh 94140 Sundeep
Tech 240546 Gupta 44844 Gupta 44484 kumar
1 4
14 Ambuja 982920 Ashok Mr. Adarsh 982901 Mr. Adarsh 98290 Mr. 982901016 Sundeep
4039 Ji Sighaniya 0160 Sighaniya 10160 Adarsh 0 kumar
Sighani
ya
15 Ambuja 979939 Rajendr Indeer 982801 Indeer 98280 Sundeep
3316 a Kumar 1508 Kumar Daga 11508 kumar
Daga
16 Shree 921400 Mahes Bhagchand 941401 Bhagchand 94140 Sundeep
Cement 8507 h Jain 5773 Jain 15773 kumar
17 Ultra- 982806 Mr. Mahesh 941404 Mahesh 94140 Sundeep
Tech 3547 Santos Gupta 44844 Gupta 44484 kumar
h 4
18 Birla 982957 Prasha Sharda 992801 Sharda 99280 Sundeep
Uttam 5124 nt Sales 4407 Sales 14407 kumar
19 Binani 992895 Kapil Govind 946049 Sundeep
75124 nama 2551 kumar
20 A.C.C 992821 Ramph Sundeep
1342 ool kumar
21 Bangur 810400 Mr.Muk Mr. Ram 941406 Mr.Ram 94140 Mr.Sanj 921431540 Sundeep
6952 esh Prasad 4562 Prasad 64562 eev 2 kumar
Sharma Gupta
22 ACC 995014 Mr. Mr. Shyam 931480 Mr. Shyam 93148 Mr.Atul 941408101 Sundeep
2828 Babulal Sundar 3858 Sundar 03858 Ji 0 kumar

52
>PROCEDURE OF ORDER BOOKING

Orders from the dealers are booked by dump supervisor and recorded in "Order
Register" which contain following information:

a) Serial no.
b) Order no.
c) Name of party
d) Center
e) Party code
f) Type of grade quantity in MT
g) Delivery At

Orders from dealer are accepted if it is accompanied by payment only i.e. on

advance payment may be either by dealer or by the market advisor are those who
pay for the dealer in advance and latter on they collect from dealer. Direct order from
dealer or sub-dealer are not booked at dump they have to fulfill their own demand
from the dealer only as a result it identify of dealer remain unaffected. If the order is
to be executed from the factory then the concerned booking clerk will forward all
such orders to regional office on daily basis duly listed. On the basis of the order
booked and goods receipt from the dealer dump supervisor prepare "Delivery Order"
in the prescribed format as per annexure delivery order contain following
information:-

a) Date no.
b) Name of dump yard
c) Order no.
d) Name and address of dealer
e) Name and address of consignee if any
f) Name of transporter and truck no.
g) Quantity of material in M.T. along with grade

Delivery orders are prepared in duplicate, original copy are given to the handling
agent appointed at respective dump point for loading/dispatch. Duplicate copy will be
retained at the dump. Based on delivery order handling agent will arrange execution
of the order by preparing challans.

53
Challans are prepared by dump supervisor which contain following information :-

a) Date

b) Name of consignee if any

c) Name of party or dealer

d) Delivery order no.

e) Confirmatory order no. f) Party code

f) Quantity of cement in M.T., no of bags and grade no.

g) Approximate value

i) Transporters name and truck no.

Challan no. should be given as enumerated in annexure for all state respectively.
Four copies of challan are prepared of which original copies goes to the customer,
second copy for transporter, third copy for accounts and the book copy. First two
copies handed over to the transporter. Transporter delivery the material as per the
challan and he is required to the acknowledgement from the party on his copy of
challan which is submitted along with the transporter bills.

54
>COLLECTION OF CASH

Collection of cash is one of the important function of financial management and

objective of any business organization. Binani cement ltd. has adopted the policy of
cash selling for which necessary collection account opened at various places for
depositing the collection received towards the sales. Payment is accepted only by
local cheque or demand draft. Marketing office has signed cheque from its dealer, he
deposited only after dispatched is affected i.e. on the day next to the day of dispatch.
In case dealer fails to pay the cash then market organizer of particulars area pay for
dealer whom latter on collect it from dealer. After cheque or demand draft are
deposited in bank stamped received are prepared in three copies as under :-

1st copy Consumer Copy

2nd copy Accounts Copy

3rd copy Book Copy

CEMENT STOCK REGISTER CONTAIN FOLLOWING INFORMATION

1. Date

2. Name of dump and railway yard no.

3. Opening stock quantity in M.T.

4. Cement received from factory, railway yard

5. Sales return from party

6. Dispatch of cement from dump quantity

7. Closing stock of cement, total quantity and grade.

Cement received in damage condition are recorded separately in "Damaged Cement

Register" the dump supervisor dispose of the damaged cement by refilling in
consultation with regional marketing manager after obtaining necessary approval
from the consultant (Marketing).

55
 RECEIPT OF CEMENT

Material dispatch from the works are received by road or rail at various dumps the
supervisor arrange unloading of cement through handling agent's personal and
certify the receipt of cement on all the copies of the dispatch documents with a
specific remark about the shortage/damage/burst etc. Detail of the cement received
and recorded in "Cement record Register" with following details :-

1- Date of receipt

2- Date and no. of delivery challan prepared at works via which the material is
received

3- Truck no. and name of transporter 4- Quantity received in M.T.

5- Shortage/excess received and damages if any

Total quantity of cement received is also recorded in the cement record register. Dump
supervisor prepare daily statement is annexure-A gives the details of cement received
of which triplicate copies are prepared and sent to -

a) Regional Sales Office

b) Account Department

c) Book

56
 CHAPTER - 5

BINANI BRAND LOYALTY

Brand very in the amount of power and value they have in the market place
at one extreme are brands that are not known by most buyers. Then the
brands for which buyers have a fairly high degree of brand awareness.
Beyond this are brands with a high degree of brand acceptability. Then
there are brands that enjoy a high degree of brand preference. Finally there
are brands that command a high degree of brands loyalty.

Aaker distinguished five levels of customer attitude towards his brand, from
lowest to highest.

1. Customer will change brands, especially attitude towards his brand,

from lowest to highest.

2. Customer is satisfied. No. reasons to change the brand.

3. Customer is satisfied and world incur costs by changing brand.

4. Customer values the brand and sees it as a friend .

5. Customer is devote to the brand.

Brands equity is highly related to how many customers are in classes 3, 4

or 5. It is also related, according to Aaker, to the degree of brand- name
recognition, perceived brand quality, strong mental and emotional
association and other assets such as patents, trademarks, and channel
relationship. The World's 10 most valuable brands in 1997 were (in rank
order) : Coca-cola, Marlbaro, IBM, McDonald's Disney, Sony, Kodak, Intel,
Gillette, and Budweiser. Coca-cola's brand equity was $48 billion,
Marlbaro's $47 billion, and IBM's $24 billion.

57
High Brands equity provides a number of competitive
advantages:

1. The company will enjoy reduced marketing cost because consumer

awareness and loyalty.

2. The company will have more trade leverage in bargaining with distributors
and retailers because customer expect from them to carry the brand.

3. The company can charge a higher price that its competitors because the
brand has higher perceived quality.

4. The company can more easily launch intentions because the brand name
carries high credibility.

5. The brand offer the company some defense against price competition

58
THE MODEL

Generally, loyalty is defined as repeat purchase frequency or relative volume

of same bronx purchasing. Newman and wearable (1973) have defined loyal
customers as those who re-bought a brand, considered only that brand, and
did no brand related information seeking. Oliver (1999) has defined loyalty as
a deeply held commitment to re-buy or re-patronize a preferred
product/service consistently in the future, thereby causing repetitive same-
brand or same brand set purchasing, despite situational influences and
marketing efforts having the potential to cause switching behaviour.

For the present study, a model as shown in figure is proposed to be tested

which has partly been deduced from the observations of oliver (1999) and
partly by intuition. This model tries to study whether the path from positive
emotions held by consumers towards the brands leads to brand loyalty.

A Model of Brand Relationships and Brand Loyalty

Brand Brand
Attitude Trust

Attitudinal Purchase
Loyalty Loyalty

Value for Brand

Money Affect

59
The figure shows the path beginning from cognitive loyalty in the form of
positive attitude towards a brand. This positive attitude is a function of brand
attributes and value for money proposition. The path from cognitive to lead to
affective loyalty, that is brand affect and brand trust. This proposition stems
from oliver's (1999) loyalty phase of affective loyalty where a liking and trust
for the brand are developed on the basis of previous cumulative satisfying
usage occasions. Brand affect and brand trust, each leads to development of
cognitive loyalty, that is, brand-specific commitment to repurchase the brand,
termed as attitudinal loyalty in this study. This attitudinal loyalty further leads to
action loyalty, the motivated intention of readiness to repurchase the brand,
that is behavioral intent of buying that brand. This, in turn, has been labeled as
purchase loyalty in this study.

BRAND EQUITY :

Is brand equity the price at which a brand can be sold by an organization to

another? Is it better measured by the level of awareness or the buying
intention for the next ten purchases? Is Brand loyalty a straight measure of
brand equity? It is the price of the brand under study when all brands in the
market are forced to have equal share?

It is all this and more. In fact, brand equity cannot be defined without reference
to the point of view from which it is being defined Brand equity is probably the
most popular topic on debate in issues related to marketing. What is brand
equity? Several attempts have been made to define this. There are some like
Arthur Anderson Consultants who have developed an elaborate methodology
to define brand equity to begin with, we can divide all definitions available on
brand equity into the following categories :

(a) Cost- Based;

(b) Price based; and
(c) Consumer-based.

60
 BRAND EQUITY

BRAND EQUITY Price - Based Consumer - Based

• Historical Cost • Price Premium • Brand

• Replacement Cost • Equalization Knowledge
• Market Value Method Price • Attribute
• Discounted Cash Flow • Indifferent Rating
Method
• Brand Contribution
Method

Brand equity based on cost, price & consumer

The methods mentioned in the exhibit are not elaborate and interested readers
should study the references mentioned at the end of the chapter for getting a
deeper insight into these methods.

61
BRAND IDENTITY :

Brand identity as defined by Aakar is the sum of the brand expressed as a product,
organization, person and symbol. For instance, brand as product deals with the
acce.ptance of the brand as a product itself. for its price, Nirma is seen as a good
product. BMW or Benz are basically seen as good products besides being good
brands. Brand as organization emphasizes that a brand is successfully among other
things because of the organizational values it upholds. 3 M abroad and Marico in
India have brought in a series of successful products because of their commitment to
innovations. Marico has innovative and often successful offerings in a wide variety of
products as hair oil (Parachute), edible oil (Saffola, Sweekar), Starch (Revive), jam
(sil). Brand as person deals with the question "What happens to this brand when it
becomes a person?" By implication, Denim talc would be seen as masculine, Sunslik
Shampo as 'feminine' and Pepsi as young and vibrant. Brand as Symbol deals with
heritage and what the brand stands for. For instance, coke symbolizes the American
dream, Askaer contends that brand identity is a function of these our dimensions.
The framework is reproduced below.

62
 Brand Identity

Brand as Brand as Brand as Brand as

Product Organization Person Symbol

• Product • Organizati • Personalit • Visual

Scope on Attributes (eg. y (Energetic) Imagery and
• Product innovation, Rugged Metaphors
Attributes genuine consumer • Brand • Brand
• Quality/Valu trustworthiness) Customer
e • Local vs Relationship
• Uses Global (Friend Advisor)

Dimensions of Brand Identity

The elements of Brand Identity in a different fashion. but eventually, he like Aaker
represents is as a sum of certain tangible and intangible elements. Brand identity
diagrammatically as a six sided prism as shown below. The six faces of the prism
are:

• Physique

• personality

• Culture

• Relationship

• Reflection

• Self - image

63
 UNDERSTANDING CORPORATE BRANDS AND
CORPORATE BRANDING

In today's overpopulated markets, it is difficult for a company to get its marketing

message noticed. One sure-shot way of doing this is by building a strong corporate
brand. The cover story looks at what corporate brands and corporate branding are all
about and analyzes the role they play in devising marketing strategies and providing
competitive advantage to the company. It also discusses the conceptual framework
for building a corporate brand and characteristics of such a brand.

Corporate Branding is defined as "the process of creating and managing a favorable

reputation for the company using a 'corporate brand' by sending out signals to its
stakeholders." A corporate brand is defined as "the impression that customers have
on the company as a result of their experiences with the company and not just its
products. Their collective impressions create the reputation." This process of
creating and managing a favorable and consistent brand reputation and image in the
minds of various stakeholders is labeled as corporate branding.

64
 Bringing the Corporation into-Corporate Branding

Top Management and its Decisions

• Area of business
• Implementing initiatives to
meet objectives and vision
• Location
• Corporate Symbolism
• Partners and alliances
• Location
• Implement change initiatives

Corporate Brand

Decision Made by Decision Made by Customers

Organizational Employees and Others

• Sincerity • Buy Products/Services

• Seek Employment
• Be Loyal Work Hard
• Invest in Company
• Represent Organization in • Supply Raw Materials and
Other Materials
Positive Light
• Promote Products and
• Seek Challenge Company Positively to Others
• Seek to Regulate

65
 Evolution of Corporate Branding

Marketing Customer
Perspective Focus

Brand
Identity

Brand Corporate
Positioning Association

Brand Corporate
Image Branding

Corporate Corporate
Image Association

Corporate Corporate
Personality Identity

Multidisciplinary Organization
Perspective Focus

Corporate brands do not just consumers, but have just consumers, but communities
that promote the brand.

66
 Leveraging the Corporate Brand

Benefits

• Organizational-based
differentiation
• Provide trustworthiness
• Guarantee to sure performance
• Enhance and support product
Corporate Brand-Characteristics
branding and internal brand building
• Heritage • Assist brand management
• Assets and Capabilities • Provide ultimate branded house
• People
• Values and Cultural
• Consumer Communities Challenges
• Corporate Performance • Maintaining relevance
• Managing negative associations
• Create value propositions
• Adapting to various contexts

The Process of blending corporate values with marketing practices is the hallmark of
corporate branding. Hatch and Schultz (2001) proposed the following framework
(figure 4) and argued that companies need to pay attention to all the four elements to
enhance or maintain corporate brand alignment. These are defined as follows :

1- Strategic Vision

It is a road map to what the company will achieve in the future.

2- Organizational culture

The set of beliefs, values, norms and basic assumptions that embody the
heritage of the company, together with symbols that represents the unique
character of an organization.

3- Corporate Image

The Image as perceived by its stakeholders and public at large.

67
4- Identity Organizational claims about who we are an organization.

Framework for Corporate Branding

Organizationa
Strategic
l
Vision
Cultural

Corporate
Branding

Corporate
Image Identity

68
 Chapter 6:

Project Profile

INTRODUCTION

Sales promotion activities are instinct to the marketing of any product in today
customer oriented marketing structure of our economy. Now a day, the market is
flooded with several items/Products, which are in fierce competition among each
other, within the country as well as with MNC’s. There is no shortage of any product,
anywhere in the country. With so many products vying with each other is bound to get
the customer confused on what to buy & which company’s product he likes. In such a
mental state of the customer, sales promotion activities play an important role. It does
help a customer to take a buying decision.

MCL Cement Limited Unit started its production on 17th October 1982. At that time
there were not too many cement companies was controlled by the government of
India. The manufacture had to sell a certain percentage of their production to the
government and the rest to the public but with the permit of the government. This was
the control market situation.

In 1995 Government of India, finally decontrolled the cement commodity and the
manufacturers were free to sell their cement in the open market. This scenario
resulted in the increase of cement manufacturing capacities in India. More & more
new units came up during this period. Liberalized Government industrial policies,
availability of power, discovery of newer limestone deposits and the demand in the
market also added to this.

During the period of opening up market every band of cement started vying for a place
in the market. Since all brand had to follow the standards lay down by BIS and to have
ISI certified mark on the product, it became increasingly important for the
manufacturers to sort some sales promotional activities to lure the customers.

69
It was then that MCL Cement also started sales promotional activities. Initially MCL
Cement started the following sales promotional activities.
Gift item distribution to consumers

Cash discount for dealers

Picnic/Excursion for dealers

SALES PROMOTION ACTIVITIES

For Customers
Manglam Cement Limited is performing following sales promotion activities for
customers

Gift Item Distribution

For consumer sales promotion company distributes following items Calendars,

Diaries, Pen, Slip pads, Key rings, Stepny covers, Danglers, Telephone indexes, S
Shopping bags wall clocks etc. Gift items other than the general are also distributed in
mason meet/dealer meet/ Architect meet like Leather bags, Wrist watches, Paintings,
Crockery set etc.

Mason Meet

Masons are the people who largely influence the buying decisions of any house
owners. To create the awareness among masons and also to give them the
knowledge of proper use of our cement, mason meetings are conducted. These are of
about two hours duration in which a person from technical cell explains the use of
product and also answers the queries raised. The meeting is followed by lunch/Dinner.

Architect/Builders/Contractors meet

The company organizes architect/contractors/Builders meet separately because of the

intellectual level difference with the mason. Such meetings are of about an hour’s
duration, wherein the discussions are created on the technicalities, such meetings are
also followed by lunch/dinner and gift distribution.

70
For Dealers & Retailers
Dealer’s Meet
Dealers meet are organized from time to explain the company marketing policies any
changes, any amendments, any new policies. Such meetings also serve the important
purpose of getting the feed back from the market and also to learn the competitive
brand strategies. Such meetings are of the duration of 2 hour followed by high tea /
dinner.

Trip/ excursion tours

Trip/ excursion / tours are organized with the aim of getting to know the dealers and
their families, to create a bond of friendship and to improve the interpersonal
relationship among the dealers as well as with the company. These tours are held
most at any Hill Station or sea side resort such tours are mainly meant for fun.

Retailers Meet
Retailers are the important link who has direct contacts with the customers. That is
why the company also organizes meeting with the retailers in order to get the feed
back from the market and prices prevailing in the market and to review competitor’s
policies. Such meeting serves an important function of creating a sense of
belongingness among the retailers.

Cash Discount
Cash discounts are given in order to facilitate fast cash recovery. For dealers &
retailers the company has a cash discount scheme as given below. The dealers or
retailers may transfer this discount to the customer. This is a general discount scheme
followed by all cement companies.
Rs. 4 /- per bag on advance payment
Rs. 3 /- per bag if payment received within 3 days after delivery
Rs. 2 /- per bag if payment received within 7 days after delivery
Rs. 1 /- per bag if payment received within 15 days after delivery

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Quantity Discount
To encourage the dealers/retailers to sell more company has a scheme of quantity
discount as given

Rs. 20 /- per MT up to 50 MT
Rs. 40 /- per MT from 51 MT to 120 MT
Rs. 50 /- per MT from 120 MT to 120 MT
Rs.60 /- per MT for beyond 250 MT

DISTRIBUTION CHANNEL
Distributions channels are set of inter dependent organs involved in the process of
making a product for use or consumption. So deciding marketing channel is a very
critical decision because it affects all marketing decisions. Cement is regarded as one
of the basic material for the growth of any country, so it is very essential that the
distribution channel should be such that it makes the product available to all potential
customers.

Since inception of Cement Industry in India the distribution of Cement was fully control
by Govt., but after adoption of the decontrol, distribution channel of MCL Cement Ltd.

The company in Rajasthan has four sales promoters, which covers risks regarding
sales. The stockiest of the company may appoint retailer for retailing of cement. The
company also has sales officer in market for the purpose of attending tender and
lessoning with govt. department sales promoters of MCL Cement are arranging the
distribution cement through dealers / stockiest.

ADVERTISEMENT
Advertising is a vital marketing tool as well as a powerful communication force. It is the
action of calling some thing to attention of the people, especially by paid
announcements. There are numbers of way like: Newspaper, wall painting, hoardings,
panels, pamphlets etc. generally used by the marketing managers to objective and
established their brand in the eyes of customers.

72
Binani Cement Ltd. is also doing advertising through different media. The different
means by which MCL Cement Ltd advertising is as given below-

Hoardings
Wall paintings
Pamphlets
Brochures
News Paper Advertising
TV Advertising
Tractor trolley & jugad painting
Placard displaying use of Birla Uttam Cement

73
 CHAPTER - 7
RESEARCH METHODOLOGY
TITLE OF THE STUDY
“A study on effectiveness of sales promotion activities of cement industry with special
reference to Binani cement Ltd.”

OBJECTIVE OF STUDY
• To review the sales promotion activities undertaken by the company.
• To find out the advertising activities followed by Binani Cement.
• To compare the sales promotion activities of the company with the competitor.
• To suggest proposed sales promotion activities to cement industry in general
and in particular to the company.

Scope of the study

This study will yield a great benefit to the organization as a lot of scope is there,
particularly in distributor and retailer segment. This will help to increase the sale of
organization.

1. The study has been done for the Cement so more or less it helps in
understanding the consumer preference towards the cement market.

2. The study can help in analyzing certain weak point, improving on which a
company can overcome the low sales of its cement .

SCOPE FOR FUTURE WORK

The main motive of project work on BINANI cement is to prepare the general note of
its outline process. Most of all data are collected from primary as well as secondary
data.

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BINANI cement ltd. came in exist in year 1996 & first production unit started in year
1997 at that time company establish cash & carry system, since then in cement
industry BINANI cement is the first company who take order with advance (in
cheque/demand draft).

After the survey I found that this company holds Second LARGEST POSITION in
market on the basis of its sale in Kota Market but due to short supply every customer
haven't got a single bag at a time.

Newly Plant is launched in Sirohi, Neem ka Thana .After that the production have
been just double .

Company provides their products in 3 areas ........................

In Rajasthan, in Gujrat and in North (include- Jammu & Kashmir, Delhi, Uttar Pradesh)

When we talk about advertisement then market shows mixed response.

Dealers are not happy because they think that if company have lot of money for Mr.
Bachhan why they are not interested in launch some scheme for them.

TYPE OF RESEARCH

 Research Design: - Exploratory

 Sample size: 60 Retailers & Dealers
Sampling Method: - Straight Random sampling

DATA SOURCE
Primary Data:-
It is those data, which are collected fresh and first time, and they happen to be original
in characteristics. This may be done by either surveying and asking person to survey
or going in the field and collecting data. This type of data is more confidential and
chance or error is minimized. In this project surveying the retailers is the source of
collecting primary data. The normal procedure is to conduct personal interview and
telephonic interview for primary data.

75
A primary survey was conducted at Kota city and survey was carried out at various
levels and the target group was retailer and distributor

Data Collection Method (Primary)

 Schedule method
 Personal Interviews
 Questionnaire

Secondary Data:-
It those data which are already collected by someone else and which have already
been past through the statistical process, secondary data provide the starting point
research and offer the advantage of low cost and ready availability.

Data Collection Method (Secondary)

 Previous records of company.
 From various commercial magazines, books, articles, Internet.

Research Approach
Survey with structured schedule at different areas of Kota city. Random visits to
retailers.

SAMPLE PLAN

Universe - Kota
Sample Frame: - Kota city
Sample type- Exploratory
Sample design- Stratified random sampling
Sampling Units: - Distributor and Retailers of Kota City
Sample size-60
The sample Distribution:

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 Sr. No Area No. of Retailers
1 Mahaveer Nagar 9
2 RangBari 4
3 Talwandi 3
4 DadaBari 3
5 Basant vihar 2
6 Gumanpura 4
7 Nayapura 3
8 Vigyan Nagar 5
9 Kansan & D.C.M. 7
10 Borkhda 5
11 Kunai& Manta 8
12 RLY STN. Area 4
13 Anant Pura 3
Total 60

LIMITATIONS OF STUDY

• This study is strictly bound to Kota city.

• Sample size is small.
• Time is limited.

Chapter 8:
Fact & Findings

77
1. The company should initiate dealers/retailer schemes based on monthly target
dealer's for better sales.

2. Consumers prefer Binani cement in the Kota $ surrounding areas the company
can offset the enter casts incorrect in dealer's scheme.

3. The company must organize mesons meeting in different regions to familiarize

them with Binani cement.

4. The maintain good relation the company must provide gifts to mesons and
engineers at regular intervals. This will further help in building a good report as
the con become the ambassadors of company and further help in promoting the
company's brand.

5. The company must maintain a regular price whole region as done by its
competition. Price fluctuation creates problem to the dealers in giving
justification to there customers.

6. The company must inform its dealer's of the price fluctuations, which takes
place in the market from time to time through advertisement.

7. Most of competitors in the region provide created facilities to its dealers so the
company must also provide the same facility to its dealer's.

8. When the price of cement increases, the company does not provide cement at
short antic time is the general grievance of our dealer's as the competitors
companies inform their dealer's about the incepted price like and book orders
on the previous prices. The same must be done by us also because of this our
dealers will earn more profit and be interested more to sale our brand in the
market.

9. The company must fine the price of cement lags to be charged by its dealers
for retailers as well as customers. Direct sale to consumer by the company
dealer's must be not at the similar an which it sold to a retailer in the area. This

78
 will caret more interest among its retailers and will be able to create more soles
in the market.

10. I found that in some area Binani Cement has largest demand in market like
Mansarovar, New Sanganer Road.

11. In some rural areas the demand of Binani Cement is not good in comparison to
their competitor cement brand.

12. In my whole survey I found that the Binani Cement holds the second largest
position in the market on the basis of its sale in the market.

13. Transportation facility in rural areas are not to good.

14. Cement brands like Shree Ultra, Ambuja & Ultratech give close competition to
Binani cement.

15. Customer in Kota and surrounding areas prefers Binani Cement the most.

16. Comparative study of cement brands on the price basis the sale of Binani
Cement is low compare to other cement brand.

CHAPTER –9

ANALYSIS AND INTERPRETATION

79
Q1. Which brands of cement are you selling?

Percentage
Name No. Of Dealers/Retailers (Out of 60)
ACC 7 11.66
Binani 52 86.66

Ambuja 22 36.66
J.K.L.C 18 30
Bangur 13 21.66

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Interpretation:
The above chart shows that 52 Retailers are associated with the Binani cement.

Q.2 What is your sales per month?

Percentage
Response No. Of Dealers/Retailers

0-250 Bags 9 15
250-500 Bags 10 16.66
500-1000 Bags 14 23.33
1000-5000 Bags 20 33.33
5000-10000 Bags 3 5
10000-20000Bags 4 6.66
Total 60 100

20

15 0-250
250-500
500-1000
10
1000-5000
5000-10000
5 10000-20000

The above Chart Show that the 9(60) Dealers are selling in small quantity say (0-250
Bags) and 4(60) which is 6.66% are selling large quantity say (above 10000 bags) we
can infer that 6.66 % figure are related to builders and contractors.

81
Q.3 Which type of motives play important role while dealing in Binani Cement?

No. of Percentage
Motive
Dealers/Retailers
Margin 24 40
Demand 19 31.66
Supply 3 5
Price 4 6.66
Quality 9 15
Availability 1 1.66
Total 60 100

Which type of motive may important role in Brand

dealing ?

25

20
Margin
15 Demand
Quality, Supply
10 Price
No. of
5 Dealers Quality
/Retaile Availability
0 rs, 9
No. of %
Dealers/Retailers

The above Chart show that the 24(60) Dealers/Retailers respondents are more
motivated towards margin. 19 (60) Dealers/Retailers respondents are demand. This
type we can show that more Dealers/Retailers are considering of margin.

Q.4 In your opinion, is there any impact of sales promotion activities on the purchase
of a cement brand?

82
 Percentage
Response No. of Dealers/Retailers

Yes 38 63.33
No 22 36.33
Total 60 100

In your opinion there any impact of

advrtising on the Purchase of aCement
Brand ?
70

60

50

40
Yes
30
No
20

10

0
No. of Percentage
Dealers/Re tailers

The above chart shows that the 38(60) respondents are Impact of advertising on the
Purchase of a cement Brand. So Company should Use more advertising Policy.

Q.5 According to you which of the below activities help in increasing sales of the
product?

83
 No. of Percentage
Response
Dealers/Retailers
Delear’s meet 15 25
Retailer’s meet 2 3.33
Contractor & Labor’s 40
24
meet
Cash discount 19 31.66
Total 60 100

what are you suggest to improve the

sales?

Im prove the price structure Im prove the product quality

Im prove the advertisement policy If others then _____

The above chart shows that the 25%respodents are interested in delears meet, 3.33%
respondents are interested in retailers meet and 40% respondents are interested in
masoon meet, and rest 31.66% respondents are interested in cash discount.

Q.6 Are you satisfied with the present credit policy of the Company?

84
 No. of
Response
Dealers/Retailers Percentage
Yes 47 78.33
No 13 21.66
Total 60 100

Are you satisfied with the present credit policy of

the company?
47
50
40

30
20 13

10
0
No. of Dealers/Retailers

Yes No

The above chart shows that the 47(60) Respondents with the present credit policy of
cement and vast Majority respondents.13 (60) unsatisfied with presents credit policy of
company. So company should more concentrate on the credit policy as per the
dealers and retailers points of views.

Q.7 Which activities will you suggest should be used by the Company to improve
sales?

85
 No. of Percentage
Response
Dealers/Retailers
Improvement in the 25
15
price structure
Improvement in the 3.33
2
product quality
New advertisements 24 40
Bulk Quantity Offers 19 31.66
Total 60 100
what are you suggest to improve the
sales?

Im prove the price structure Im prove the product quality

Im prove the advertisement policy If others then _____

The above chart shows that the 25%respodents want to improve the price structure,
3.33% respondents want to improve the product quality 40% respondents want to
improve the advertising policy and rest 31.66% respondents want to improve the sales
in different manner. We can infer that if company wants to improve sales, they have
timely considered sales promotion activity.

Q.8 What is the time of minimum sale in a season?

86
 No. of
Response Percentage
Dealers/Retailers
Rainy 19 31.66
No effect 41 68.33
No answer 0 0
Total 60 100
What is the time of minimum sale (consumption)
in a season?

Rainy No effect NO Answer

Demand of cement may vary in different season. To boost the sale in that particular
time. We must know what is that time when sale (consumption) is minimum and out of
60 respondents 19 (31.66%) have opinion that their sell effect in rainy season. But 41
dealers and retailers are not affected in any season.

Q.9 Are you satisfied with present scheme of sales promotion activities?

87
 Percentage
Response No. of Dealers/Retailers

Yes 54 90
No 6 10
Total 60 100

Are you satisfied with present scheme of

advertising?

100

80

60
Yes
40 No

20

0
No. of Percentage
Dealers/Retailers

The above chart shows that the 54 (60) which is 90% respondents are satisfied with
the present advertising schemes of cement company and respondents 6 (10) which is
10% are unsatisfied with presents advertising schemes. If company wants stable
performance of the present condition he should use the same policy of advertising.

Are you aware about the proper usage of the product?

Q.10 Are you satisfied with the after sales service of the company?

88
 No. of
Response Percentage
Dealers/Retailers
Yes 57 95
No 3 5
Total 60 100

Are you satisfied with the present after sales

service of the company?
57

60
50
40
30
20 3

10
0
Yes No
Percentage 57 3

The above chart shows that the 57(60) which is95%respondent are satisfied with the
present after sales service of the company and 3(60) respondents which is 30% are
unsatisfied with the present after sales service of the company. We can infer that
company is providing good after sales services and vast majority of respondent are
satisfied. So there is no need to change in after sales services facilities.

CHAPTER - 10

SWOT ANALYSIS OF BINANI CEMENT

SWOT analysis is a technique by which we show all the situation the business

89
 organization. The SWOT analysis begins with the appraisal of external environment so
that the organizations can analysis various opportunities and threats offered by it and
the organization can relate in the light of its strengths and weakness.

SWOT-analysis is done to understand the external and internal environment of the

organization. SWOT, which is acronym for strength, weakness, opportunity and
threats is also known by TOWS-analysis.

Though such an analysis, is strength and weakness exist within an organization can
be matched with the opportunity and threats operating in environment , so that an
effective strategy can be formulated. An effective organizational strategy, therefore, is
one that capitalizes on the opportunity through the use of strength and neutralizes the
threats by minimizing the impact of weakness.

Below is the SWOT- analysis of Binani Cement limited in cement market.

Strength

 People ask for bleakness in cement and Binani has this.

 Cement grade is good and people are satisfied.

 Customer choice.

 Binani being an MNC has a global leverage.

 It has a good brand image in Cement.

Weakness.

 Not an easy task to overtake Ambuja &Ultratech .

 Price and margins is not match with dealers and retailers expectation
respectively.

90
 Guaranty given by company is from the date of manufacturing which is not
acceptable for the dealers and retailers.

 Take large time in the replacement of Cement.

Opportunity

 Strong infrastructure requirement for the development of the country and

the country is developing in the utter pace.

 No of the medium class people is growing.

 Institutional market like corporate and government offices, school society

complexes are growing in large scale, which will increase the requirement.

Threats

 Cheep priced brand are grabbing rapidly a large chunk of lower income
customer base.

 Other brands like Shree and JK lakshmi provide maximum profit to the both
customer as well as to the retailers.

 It was found from my survey that Ambuja maximum market share is due to
brand loyalty.

 Dealers expect more margin and gift to sell of the Binani cement.

Chapter 11

Conclusions
• A good majority of respondents are associated with Binani.Cement Ltd.

91
 • Many retailers/Dealers are not satisfied with Profit Margin.
• Most of the Retailers/Dealers have opinion that any impact of advertising on the
purchase of cements Brand.
• Most of the retailers/dealers are satisfied with present credit policy of the
Company.
• Most of the Dealers /Retailers (65%) / are satisfied with the Sales Promotion
scheme of the Binani.Cement Ltd.
• Many retailers are not satisfied with the proper supply of the Company.
• Most of the Dealers/Retailers are satisfied with advertising policy of the
Binani.Cement Ltd.
• All dealer and retailer are satisfied with quality of Cement.
• Most of Dealers and Retailers are aware about the proper usage of the product.

Chapter12:

Suggestions & Recommendations

A very exhaustive study has been made, keeping in the essence of the objective
of the project. With the efforts put on the project a detailed analysis was
conducted and result were derived, based on the results and market response few
suggestions are discussed below

92
A Price fluctuation creates problems for retailers as the cannot keep the commitments
of price to customers……

The reach to the rural market need to be strengthened

Transportation to rural areas need to be strengthened, a significant amount of

business is lost because of this.

At time it has been seen that the delivery commitments an the side of the company is
not prompt, this creates a bad name and again business is lost

On interviewing Dealers/Retailers the most important thing they said was about
the price flexibility, they want that the company should give them the price flexibility
to play in the market. (As the company has outlined that the price offered by the
company should only be offered to the customer, it should not increased to the
customer, it should not be increased or decreased).

QUESTIONNAIRE FOR RETAILERS AND DEALERS

Firm :
Contact Person :
Address :
Contact No:

Q.1 Which brands of cement are you selling?

93
A.) ACC B.) Binani C.) Ambuja

C.) J.K.L.C D.) Shree E.) Bangur

Q.2 What is your sale per month?

(A) 0-250 Bags (B) 250-500 Bags
(C) 500-1000 Bags (D) 1000-5000 Bags
(E) 5000-10000 Bags (F) 10000-20000 Bags

Q.3 Which type of motives play important role in brand dealing?

(A) Margin… (B) Demand… (C) Supply…

(D) Price… (E) Quality… (F) Availability…

Q.4 In your opinion, is there any impact of sales promotion activities on the
purchase of a cement brand?

1.) Yes……………. 2.) No………………

Q.5 According to you which of the above activities help in the sale of the product?
(a) Delears meet (b) Retailers meet

(c) Masoon meet (d) Cash discount

Q.6 Are you satisfied with the present credit policy of the company?
(a) Yes (b) No

Q.7 Which sales activities will you suggest improving sale?

(A) Improve price structure

(B) Improve the product Quality
(C) Improve the advertising policy
(D) If other then

94
Q.8 What is the time of minimum sale in a season?
(A) Rainy (B) No Effect

Q.9 Are you satisfied with present scheme of sales promotion?

(A) Yes (B) No

Q.10 Are you satisfied with the after sales service of the company ?

(A) Yes (B) No

95
AREA OF FIELD WORK in Kota

Rangbari, Khade Ganeshji,Mahaveer nagar I, II, III & Ext., Vigyan nagar, Veer
savarkar nagar, Indra vihar, Jhalawar road, IPIA &IPIA( ssi), Kunhari, Borkhera,
Shopping centre, Subhash nagar, Ganesh nagar, Santosh Nagar, Baran Road, Ajmer
Road, Station Road, Jawahar Nagar, Basant Vihar, Mega Highway, Gumanpura,
Gobaria Bavdi, Ravatbhata Road, Shastri Nagar

I think I have covered all the Kota. In this matter all the marketing officers help me to
give the guidelines & tell the areas.

URATION OF TRAINING: 6 WEEKS1 July to 14 August 2010

NAME OF THE COMPANY- BINANI INDUSTRIES LIMITED (Cement Division):

96
 BIBLIOGRAPHY

• Kothari C.R. "Research Methodology"

• 3 Kotler Philip "Marketing management" new Delhi, Prentice hall of India
Private Ltd. 2007
• Marketing Management "Rajan Sexana" Tata McGraw Hill, 2002.
• Marketing Management "Ramaswami & Namakumari" Mcmillan India Ltd. 2003
• Sales Management Decision Strategies & Cases "Rechard R. Still Edward W.
Cundiff. Norman A.P. Govoni" Prentice Hall of India. 2003
• Management Global perspective "Heinz Welhrich, Harold Kootz" Tata McGraw
Hill Publishing Company Ltd. 2001
• Marketing Management "Philip Kotler" Persons Education,2004

MAGAZINES/JOURNALS
• MURTHY E.N "Marketing Master Mind"
Verma Bina "Marketing"

BOOKS

1. Research Methodology: C.K. Kothari

Wishwa Prakashan Darayaganj
New Delhi
2nd Edition-1995
2. Marketing Management: Philip Kotler
Prentice-hall of India Pvt. Ltd. New Delhi-110001
8th Edition -1995

WEBSITE

• www.lafarge-cement.co.in
• www.google.com
• www.ibef.org
• www.indianexpress.com

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• www.binani.com

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