Professional Documents
Culture Documents
INTRODUCTION
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A
SUMMER TRAINING PROJECT REPORT
ON
BRAND IMAGE OF ACC CEMENT IN CEMENT INDUSTRIES
SUBMITTED TO:KURUKSHETRA UNIVERSITY
KURUKSHETRA
SUBMITTED BY:
Ms. Vasundra
Sunny Sharma
Faculty
M.B.A (Dept.)
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DECLARATION
Sunny Sharma
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ACKNOWLEDGEMENT
First of all I would like to thank my college lecturer for her whole hearted co-operation during
my summer training in ACC Barmana, which gave me a good exposure and a hand-on
experience of the modern office practices.
I would like to thanks Mr. Ravi Srivastava Asstt. Manager Sales, for giving me an
opportunity to be associated with his esteemed team for gaining such practical knowledge &
providing me necessary inspiration as well as encouragement during the course of this training.
I wish to express a deep sense of gratitude & sincere thanks to my project guides
Mr. Ravi Srivastava (Asstt. Manager Sales ) and other staff, for giving me time, out of their
busy schedule, for imparting me with such great knowledge and making my training successful. I
also want to wish my gratitude to the following for providing me the necessary information:
Mr. Kaushal Kishore Distt. Officer
Mr. Anish kaundal Chief Manager
In the end I would like to thanks all those persons who have helped me directly or
indirectly in completing my industrial training and also this project report.
Sunny Sharma
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PREFACE
In today economy, one needs money to make money. Money makes the wheel of business run
smoothly. Sound plan and efficient production system and excellent marketing network are all
hampered in the absence of adequate funds. In modern economy, the rate of finance has
increased due to large scale industrial production. And has resulted in increasing the demand of
funds in an organization. Every business needs funds for various purposes for its establishment
and to carry out its day to day operations. The present project study is a humble attempt to
understand the subject in a simple way. The aim of this training project is to know the Marketing
system and Marketing analysis of ACC Ltd. ACC Ltd. is one of the leading companies in cement
industry, producing more than one fourth of national output.
The study is divided into different chapters. The chapter is related to introduction of ACC
Ltd. It is based on brief history of the company and its present function in the industry. The next
chapter is related to overview the Marketing statement shown in the annual report of the
company. This chapter analyzed and interpreted the result and the base of this analysis.
CONTENTS
S. NO.
1.
TOPICS
Certificate
PAGE NO.
I
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2.
Declaration
II
3.
Acknowledgement
III
4.
Preface
IV
Chapter 1
Introduction
1-38
Review of Literature
39-43
Chapter 3
Research methodology
44-49
50-57
Chapter 5
58-63
Chapter 6
Conclusion
64-65
Bibliography
66
Questionnaire
67-68
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Today Palampur is changing very fast. Every corner of Palampur is having some construction
work which will be finished within 2 years. In this construction work cement is the main
ingredient and it is consumed on mass level. Every major player is looking to grasp the
Palampurs cement market. It is estimated that the present market potential of Palampur is near
about 6000 metric tons in the private as well as in government sector.
This project was carried out in the market of Palampur of Hmachal Pradesh state. There
are three market players in cement industry. They are ACC cement, Ambuja Cement, Jaypee
cement,apart from these there are few local brands selling in the market.
The information about the market was gathered by visiting sites in the different location
in Palampur. Interview of sites manager was taken depending upon their accessibility.
While doing the project, attempt was made to collect maximum information about the
market. To get actual and correct information, it was not told site managers that the survey is
conducted by ACC Cement for the obvious reasons. Number of sites was visited to get the actual
picture of the market. The sites of each grade (according to the performance) were visited, to get
each and every detail about the market.
Most of the time was spent in traveling from one site to other. And every time it is not
necessary that we get the response from them. They were reluctant to give the information, as
they do not want to disclose their business details. They were not ready to give the detail about
the price at which they were purchase the cement. Visits to such sites were loss of time, money
and energy.
After collecting the detailed information about the market, analysis is done. In the
analysis, the observations recorded during the project were carefully analyzed and the results are
prepared. The findings and result of the project work are given at the later stage in the report.
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To carry out market survey to know the brand image of ACC cements Pvt. Ltd. in
Palampur area (H.P).
To attain this objective various other sub objectives are needed to be achieved. These are
listed below:-
Thus it attempt to find ways to increase market share, to increase customer satisfaction and thus
increase the business prospects.
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COMPANY PROFILE
INTRODUCTION TO COMPANY
ACC cement is India's foremost manufacturer of cement and concrete. ACC's operations are
spread throughout the country with 16 modern cement factories, more than 40 Ready mix
concrete plants, 20 sales offices, and several zonal offices. It has a workforce of about 10,000
persons and a countrywide distribution network of over 9,000 dealers.
Since inception in 1936, the company has been a trendsetter and important benchmark for
the cement industry in many areas of cement and concrete technology. ACC has a unique track
record of innovative research, product development and specialized consultancy services. The
company's various manufacturing units are backed by a central technology support services
centre - the only one of its kind in the Indian cement industry.
ACC has rich experience in mining, being the largest user of limestone. As the largest
cement producer in India, it is one of the biggest customers of the domestic coal industry, of
Indian Railways, and a considerable user of the countrys road transport network services for
inward and outward movement of materials and products.
Among the first companies in India to include commitment to environmental protection
as one of its corporate objectives, the company installed sophisticated pollution control
equipment as far back as 1966, long before pollution control laws came into existence. Today
each of its cement plants has state-of-the art pollution control equipment and devices.
ACC has made significant contributions to the nation building process by way of quality
products, services and sharing expertise. Its commitment to sustainable development, its high
ethical standards in business dealings and its on-going efforts in community welfare
Programmers have won it acclaim as a responsible corporate citizen. ACCs brand name is
synonymous with cement and enjoys a high level of equity in the Indian market. It is the only
cement company that figures in the list of Consumer Super Brands of India.
MAJOR COMPANIES IN THE CEMENT INDUSTRY ARE: The Associated Cement Companies Ltd.
Birla Group.
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HISTORY
ACC CEMENT has an interesting story - one that inspired a book. ACC was formed in 1936
when ten existing cement companies came together under one umbrella in a historic merger -the
country's first notable merger at a time when the term mergers and acquisitions was not even
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coined. The history of ACC spans a wide canvas beginning with the lonely struggle of its pioneer
F.E Dins haw and other Indian entrepreneurs like him who founded the Indian cement industry.
Their efforts to face competition for survival in a small but aggressive market mingled with the
stirring of a country's nationalist pride that touched all walks of life - including trade, Commerce
and business.
The first success came in a move towards cooperation in the country's young cement
industry and culminated in the historic merger of ten companies to form a cement giant. These
companies belonged to four prominent business groups - Tatas, Khataus, Killick Nixon and F E
Dinshaw groups. ACC was formally established on August 1, 1936. Sadly, F E Dinshaw, the man
recognized as the founder of ACC, died in January 1936; just months before his dream could be
realized.
ACC stands out as the most unique and successful merger in Indian business history, in which
the distinct identities of the constituent companies were melded into a new cohesive organization
- one that has survived and retained its position of leadership in industry. In a sense, the
formation of ACC represents a quest for the synergy of good business practices, values and
shared objectives. The use of the plural in ACC's original name, The Associated Cement
Companies Limited, itself indicated the company's origins from a merger. Many years later, some
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stockbrokers in the country's leading stock exchanges continued to refer to this company simply
as 'The Merger'.
Holcim A New Partnership:
A new association was forged between ACC and The Holcim group of Switzerland in 2005. In
January 2005, Holcim announced its plans to enter into long term alliances with Ambuja Group
by acquiring a majority stake in Ambuja Cements India Ltd. (ACIL),which at the time held
13.8% of total equity shares in ACC. Holcim simultaneously announced its bid to make an open
offer to ACC shareholders, through Holdcem Cement Pvt. Ltd. and ACIL, to acquire a majority
shareholding in ACC. An open offer was made by Holdcem Cement Pvt. Ltd. along with ACIL,
following which the shareholding of ACIL increased to 34.69% of Equity share capital of ACC.
Consequently, ACIL has filed declarations indicating their shareholding and declaring itself as a
promoter of ACC.
Holcim is the world leader in cement as well as being large supplier of concrete,
aggregates and certain construction related services. Holcim is also a respected name in
information technology and research and development. The group has its headquarters in
Switzerland with worldwide operations spread across more than 70 countries.
Considering the formidable global presence of Holcim and its excellent reputation, the broad of
ACC has welcomed this new association.
INTRODUCTION TO ORGANISATION
INTRODUCTION TO GAGAL CEMENT WORKS
The Gagal Cement Project was initiated in October 1978. Construction work started in august
1980 and erection of machinery in October, 1981, on 12th March 1984 Gagal Plant-1 was
successfully commissioned and commercial production commenced with initial capacity of 5.6
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lakh tones per annum, Gagal Plant-II was commissioned in 1994 and present capacity of the
plant is 4.4 MTPA of cement.
The plant is based on the most modern process of cement manufacture; namely a dry
process suspension preheated kiln with proclaimed. The limestone is crushed in the crusher; it is
then ground in the raw mill along with shale and iron ore to fine powder. The ground material is
blended to a uniform consistency and fed to the kiln system pulverized coal is fired in the kiln
system to heat the material to a temperature of 1450 Deg.celcius. The material undergoes a series
of chemical reactions to form a clinker. The clinker is cooled in the clinker cooler and stored in
clinker silos. It is extracted from the silos and inter ground along with Gypsum and Pozzolananic
material to form Portland Pozzoiana cement. The cement is stored in cement silos. It is packed in
50-kg bags by automatic packing machines, loaded in trucks by auto-loaders and various
consumption centres in Himachal Pradesh as well as the neighbouring states of Punjab and
Haryana.
MAIN RAW MATERIALS:
Limestone
Quartzite
Iron ore
Shale
Gypsum
Fly ash
CERTIFICATION:
Certification from IS/ISO 9002, ISO 14001 for environmental management system and
OHSAS 18001 for adopting high class measure in the sphere of occupational health and workers
safety in the manufacturing of cement.
TOTAL PRODUCTIVE MAINTENANCE
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ACC Gagal Cement Works has continuously tried to improve upon its operational productivity
through world class plant management practices known as Total Productive Maintenance (TPM).
TPM is the integration of the basic functions of Production and Maintenance allowing the
employees to jointly take the responsibility for, and ownership of their work processes and
equipment. It aims to maximize Overall Equipment Effectiveness (OEE). It establishes and
promotes a systematic approach to achieve operational excellence through autonomous working.
TPM involves all employees at all levels in every function of its implementation. The most
important point about TPM is that it continuously encourages all the employees to undertake
continuous improvement of all work-related processes and systems by adopting a proactive
problem solving approach. 15th of every month is the day for TPM gate Meeting.
We are striving towards following goals using TPM:
Zero Breakdown
Zero Accident
Zero Defect
Zero Waste
Zero Inventory
SAFETY
Gagal Cement Work constantly keeps a vigil on the safe practices of doing work and in this
regard expects the same from all its employees. The following table presents the expectations
from both the participants in this regard.
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Deputy Manager-Safety coordinates all activities related to safety at works. Besides day
to day safety functioning, safety committee meets once in every month. The committee consists
of equal number of representatives form management and wage board employees.
EMPLOYEES
Condition
2.Provide system for the safe control of work
Azard
equipment available
working instructions
Manage
Non-
and health
and provided
Staf
TM
Management
Top
Staf
MANPOWER ARRANGEMENT
DAILY PAID
MONTHLY PAID
Grades
The total manpower employed at ACC, Gagal Cement works are divided into 2 categories.
TC whereas NonGrades
WM -Works
Manager
Management
Staff
is governed by Conduct
Rules framed by the company
I
A
Management
is governed by Standing Orders
certified under the Industrial
Employment
E4 - Sr. Staff
Manager
(Standing
Orders) Act, 1946
E3 - Manager
II
E2 Deputy Manager
III
E1
Manager
IV
M3
Officer/Engg.
Assistant
Senior
VI
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M1
Junior
Officer/Engineer
M
Asst.
Officer/Engineer
ORGANIZATIONAL STRUCTURE
ACCs organization structure was revised in 2006. Added thrust was given to sustainable
development with the creation of separate cells at the corporate office and plants to coordinate
activities relating to waste management, alternate fuels and raw materials, corporate social
responsibility and occupational health and safety. All these were placed under the supervision of
the Managing Director.
BOARD OF
DIRECTORS
MANAGING
DIRECTOR
ACC
Concrete
Ltd.
Business
Head
North
Business
Head South &
West Region
Business
Head East
Region
Managin
g
Chief Fin.
Officer
Corporat
e
Commercia
l Services
Central
Procurem
Tech.
Support
Operatio
n
Committ
ee
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OH & S
Raw
Material &
Overseas
Project &
Consultancy
Alternate
Fuels & RM
Communicati
on & CSR
Legal
Secretarial
&
Business
Development
& Planning
Chief
Knowledg
Internal Audit
To enable better coordination of the organizations triple bottom line performance, it is proposed
to constitute a high level team with representatives from functions relating to the main pillars of
sustainable development to coordinate reporting and align operations in line with the overall
corporate objectives. The committee will include the heads of Environment & Energy
Conservation, Alternate Fuels and Raw Materials Business Development, Occupational Health &
Safety, Corporate Communications & Social Responsibility, Corporate Human Resources,
Commercial Services, Central Procurement and Secretarial & Compliance.
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CONTRIBUTION TO GOVERNMENT
which for Himachal Government is 100 crore. And along with this it is also helping Govt. as its
social responsibility. The
company
Gagal Cement Works is committed to deliver quality products to the customers. Gagal
Cement Works has to its credit many a prestigious
certifications like
IS/ISO
9002,
ISO
14001 for environmental management system and OHSAS 18001 for adopting high class
measures in the sphere of Occupational Health and Workers Safety in the manufacturing of
cement.
QUALITY POLICY
Build Quality In
Do not Sort Bad Quality Out
Quality Improvement is Limitless and therefore Continuous
Concern for Quality is for Entire Organization and Not Just for Product
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It is extracted from the Silos and integrated along with Gypsum and Pozzolanaic material to form
Portland Pozzoiana cement. The cement is stored in cement silos. It is packed in 50-kg bags by
automatic packing machine, loaded in trucks by auto loaders and various consumption centers in
Himachal Pradesh as well as the neighbouring states of Punjab, Haryana and J&K.
POWER
The co. met 54% power requirement through captive generation. Cost of captive power
generation was 34% lower as compare to grid power. In keeping with its policy of maximizing
its captive power capability. It is also the process of increasing its thermal captive power
generation capacity by another 45 MW. The company has already achieved significant reduction
in cost in specific area like fuel, power and manpower. The drives for cost reduction will be
further insified all area of operations.
MAP KEY
DEPARTMENTATION:
QUARRY DEPARTMENT
The Quarry Department is mainly concerned with the maintenance of Mines at ACC Barmana.
The sub-departments namely MINE; ELECTRICAL, GARAGE, CRUSHER, STACKER &
RECLAIMER support the Quarry department.
MINES
Gagal lime Stone Mine is captive mine of M/S ACC Ltd., Gagal Cement Works. The mining
lease covers an area of 265.97 hectares. Presently the mine is one of the largest mine of northern
India and is fully mechanized by Heavy Earth Moving Equipment's.
COAL
Coal is used as a fuel for firing in the Kiln. Gagal Cement Works receives coal from different
collieries of CCC, ECL and NEC by rail upto Kiratpur Sahib.
LABORATORY DEPARTMENT
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Laboratory department in coordination with other departments carries our regular quality control
functions. Quality and process control measures are exercised at each and every stage of process.
Inspection and procurement
intermediate products at different level of process and final product that is cement are done as
per procedures. Inspections and Test Records are maintained in the Laboratory as per the scheme
of testing and inspection. The departmental activities are coordinated by Deputy Manager-QPC
who reports to Manager- Production.
Gagal Works laboratory has three sections:
1. Chemical & Instrumentation laboratory
2. Physical Laboratory
3. Site Laboratory
PROCESS DEPARTMENT
The Process department guides the operations in maintaining process parameters so that
production is within the desired range of quality parameters. The process parameters are arrived
at after discussions with the Departmental Heads of various sections (Raw Mill, Cement Mills &
Laboratory)
Manager Production coordinates the departmental activities.
RAW MILL
Activity of Raw Mill starts from feeding Raw Material (limestone, Quartzite and Iron Ore) to the
Mills and ends at filling the Raw Meal to Silos.
Gantry to the respective Hoppers through sequence of belt conveyors. Shale feeding is through
Reclaimed or Pay Loader.
AW MILL
Two close circuits two chamber Ball Mills are performing the grinding of limestone and
Additive mix.
Raw Mill is a tube construction of thick MS plate with steel lines and
compartments are separated by diaphragm for improving the retention time and transfer of
materials in second for further grinding. Mill is charged with hyper steel balls. Raw material is
first fed to Tertiary Crusher (Single Rotor Reversible Impact Crusher) which reduces the size of
Mix. After crushing the mix the material is fed to Ball Mill where fine grinding takes place. The
finer product is separated by Air Separator and is fed to the blending silos and the coarse material
is fed back to the Mill Inlet.
VERTICAL ROLLER MILL (VRM)
In VRM Section the material is directly fed into Mill through the feed belt for grinding.
The ground material is stored in continuous flow silos from where it is fed to the Kiln. VRM
utilizes hot air from the kiln exhaust for drying the Raw Mix
Deputy Manager VRM, who reports to Manager (Maintenance), coordinates the
departmental activities
KILN DEPARTMENT
Kiln Department functions are categorized under two heads, Manager (Maintenance) is
responsible for the maintenance of all equipment and Manager (Production) is responsible
for the Clinker Production and its quality parameters. Gagal Cement Work has two rotary kilns.
Kiln no 1 is having 3 streams coupled with 2 four stage and 1 five stage preheater with
precalciners, DDF and MFC. Kilns No 2 are having twin stream 5 stage preheater with
precalciners. Pulverized coal is used as a fuel for calcination. The Clinker is discharged to
horizontal grate cooler and is stored either in Silos or in stockpiles.
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FINISHED GRINDING
Finished grinding is performed in Ball Mills. Ball Mill is a rotating shell divided into
two chambers fitted with shell liners for shell protection and charged with grinding media to the
required volume. The impact and friction between the grinding media and material perform
grinding. Out put from the ball Mills is fed to the dynamic separator where the course and fines
of specific sizes are separated. The course is again conveyed to the Ball Mill for further grinding.
The fines are conveyed to cement silos through a series of elevators and air slides. In order to get
the desired specific surface for cement the RPM of separator is varied accordingly?
The departmental activities are coordinated by Dy. Manager-Plant who reports to
Manager (Maintenance).
ELECTRICAL
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Electrical equipment mainly comprising transformers, HT/LT motors, DC Motors, switch gears,
power distributor system and factory and residential colony lighting Besides the above E & I department
is also responsible for the maintenance if the electrical installations of the colony. The department COordinates with the other relevant departments for proper utilization of the Grid & DG power.
INSTRUMENTATION
Instrumentation system can be effectively termed as the nervous system of the plant. With the
recent advanced in technology instrumentation has become one of the most important aspect of
cement manufacturing industry. Almost all the monitoring and controlling parameters are now
available I the Central Control Room (CCR) for operators to run the plant efficiently. Accuracy
and degree of control has increased manifold due to the latest instrumentation control systems.
Dy. Manager (Electrical) and Dy. Manager (Instrumentation) report to Manager (E & I) for
electrical and instrumentation activities.
WORK SHOP
Following activities are carried out in the workshop department:
1. Departmental maintenance Activities
2. Maintenance of Gear Boxes
3. Compressors & PD Blowers
4. Water Pumps
5. Various equipment at Rambagh Pump House, Filter and Sewage Water Treatment plants.
The departmental activities are coordinated by Dy. Manager (Plant) who reports to Manager
(Maintenance).
COMMERCIAL DEPARTMENT
Procurement Section:
This section looks after that equipment, tools and other requisite items are made available to
different departments in time. Deputy Manager-Purchase who reports to Sr. Manager-Commercial
coordinates the departmental activities.
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GENERAL STORES
The general stores are the department which is involved in making the balanced and timely flow
of materials, spares, tools and equipment. General Stores also arranges for the disposal of the
scrap and unwanted materials.
Deputy Manager who reports to Works Manager coordinates the activities of the
department.
MISSION, VISION AND STRATEGY OF ACC LTD
QUALITY:- To make continuous improvement in the quality of our product and services and
add some essential features for customer satisfaction and ensure their supply at fair prices.
PROFITABILITY: - To achieve fair and reasonable return on capital employed by making
optimum utilization of available resources and increasing productivity & effectiveness
throughout the company.
RESPONSIBILITY: - To fulfill our obligation to society, specifically in the area of rural
development and in safeguarding.
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LEADERSHIP: - Maintain our leadership of the Indian cement industry through the country
modernization and expansion of our manufacturing facilities and activities and through the
establishment of a wide and efficient marketing network.
GROWTH: - Ensure a steady growth of business by strengthening our position in the cement
sector.
EQUITY: - Promote and maintain fair industrial relation and environment for the effective
involvement, welfare and development of staff at all levels.
VISION:- Vision of ACC is to be a world class corporation with diverse business built around
ACCsunita core competencies and knowledge base in cement refectories advanced material
engineering geology mining and research.
The Vision statement narrates these areas as: ACC is a trusted and ethical organization
ACC delivers enduring value to investors and other stakeholders
ACC is committed to environment protection and the well being of the
community.
This statement is synonymous with balancing the Triple Bottom Line defined as the
achievement of three interdependent and mutually reinforcing goals of economic development,
social development and environmental protect
Value Creation
ACC is a great
place to work.
ACC is a customer
ACC delivers long term values to i
driven org.
nvestors and to other shareholders
ACC is a learning
org.
ACC is alert to the
changes in business
environment and
respond effectively.
ACC adopts world
class business
practices to surpass
global benchmarks.
ACC develops
employees through
need based
learning.
ACC is a customer
driven org.
.
ACC has employees
who are committed
to delivering
ultimate customer
satisfaction.
ACC is the most
preferred brand in
India.
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BUSSINESS STRATEGY
2007
2007
2008
2008
Market Share
2009
2009
2010
2010
2011
2011
Competitiveness
Organization
Corporate
Citizenship
Bottom Line
1) OPERATIONS DIVISIONS
This division is responsible for the operation of all the Companys Cement Works & its slag
granulation plant. The Cement plants are
a) Bhupendra Works b) Chaibasa Works
c) Chanda Works
d) Gagal Works
e) Jamul Works
f) Kymore Works
g) Lakheri Works
h) Madukkarai Works
i) Mancherial Works
j) Sindri Works
k) Wadi Works
b) Major Repairs
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c) Mining Machinery
e) Railway Liaison
f) Safety
2) FINANCIAL DIVISIONS
The division is responsible for all accounting & financial functions. This is addition, takes care
of the taxation function, the Companys Provident Fund & Insurance. All receipts, development
& monitoring of funds is done by this division. This comprises of following sections:
a) Corporate Tax and Insurance
b) Payrolls, Provident Funds & Officers Superannuation Funds.
c) Company Accounts
d) Treasury
f) Project Finance
g) Sales Accounting & Pricing Section
h) Management Accounting Sections
The company has appointed a network of 10,000 stockiest in all rural urban markets
ii)
Opening of warehouses: The Company has organized warehousing facilities at almost all
important urban consumption centers in the country so that ACC Cement is freely
available to the consumers in proximity to the point of consumption.
iii)
The company has customer service cells in the North, South, East & West regions to
attend all kind of customers complaints to provide promp ans satisfactory customers
servicing.
The Cement marketing to the above, CMD has eleven regional Marketing Officers situated at
Ahmedabad, Bangalore, Mumbai, Chandigarh, Coimbatore, Calcutta, Indore, Kanpur, Pune,
NewDelhi, Secundrabad.
5) CORPORATE COMMUNICATION DIVISION
The function of this division includes Advertising, Publicity and Public Relations. It also acts an
information bureau dealing with a variety of enquiries from outside, catering to numerous requests for
information from within. It also publishes a houses journal-ACC Parivar in English & in Hindi.
6) REFRACTORIES DIVISION
The manufacturing facilities of the refractories are concentrated at four locations Katni &
Kymore in Madhya Pradesh, Sindri & Nagpur.
The country wide network of regional offices handles refractories sales. The refractories
division at corporate offices is responsible for the operation of the refractories Business.
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b)
Civil Engineering
c)
d)
e)
Project Services
planning & control of various functions of the company. It handles all maters connected with installation
of the computer hardware & its subsequent operations at various locations wherever it is installed. The
deptt. Deals with all computerized systems designs, development & modifications as well as operation
research work for the entire company.
Property matters
b)
c)
d)
Communication Services
e)
b)
c)
d)
e)
f)
Management Training
g)
Environment Management
h)
Advanced Management
i)
Advanced Materials
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Today, RCDs services offered are even more broad based, catering to industries like cement,
refractory, ceramics, chemical, minerals processing, petrochemical, fertilizers, ferrous & non
ferrous among others.
Companies Limited
to 1936.
During
Second
World
commodities under the defences of Indian rule and through under price and distribution
control. The cement industry gets further impetus under the leadership of ACC.
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Today we define Corporate Social Responsibility as the way a company balances its
economic, social and environmental objectives while addressing stakeholder expectations and
enhancing shareholder value.
But ACC has undertaken social volunteering practices almost from its inception, long
before the term corporate social responsibility was coined. The companys earliest initiatives in
community development date back to the 1940's in a village on the outskirts of Mumbai while
the first formal Village Welfare Scheme was launched in 1952. The community living around
many of our factories comprises the weakest sections of rural and tribal India with no access to
basic amenities.
agencies like Hewitt Associates and Grow Talent. ACC has also retained reputed firms like
Mercer and Boston Consulting Group to study the internal work environment and employee
policies to suggest areas of improvement. We share below salient points of the latest survey of
employees:-
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Concrete
business
of ACC was reorganized as a separate wholly owned subsidiary which was incorporated as ACC
Concrete Limited with headquarters in Mumbai. Today this company is one of the largest
manufacturers of Ready Mix Concrete in India with a countrywide network of over 30 plants,
with modern equipment and a large fleet of transit mixers.
ISD (INFORMATION SYSTEM DEPARTMENT)
STRUCTURE OF ISD
This department has the following structure of operation.
ISD
IT Infrastructure
Servers
Desktop
s
Reporting
Printers
Networking
Information System Department is looking after the Plants complete IT infrastructure in various
manners to keep it up for smooth running of different departments operation. It works on ITIL
process to keep industry standard.
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Servers part consist of Users logon information, Mail services, Internet Services & Central Storage
location. The details of the servers are in next pages.
Desktop part consists of Local PCs available with each computer users connected on the network. It
consists of different part like CPU, Monitor, Keyboard and Mouse.
Printers part consists of all the different types of Printers used in different departments for taking out
various types of reports. The Types of printers are Dot Matrix Printers, Line Matrix Printer, Laser
Printer and DeskJet Printers.
Networking part consists of Local Area Network which includes Optic Fiber Cable, CAT5 Cable,
Layer 3 & 2 Switches and Ethernet cards.
CHAPTER-2
REVIEW
OF
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LITERATURE
LITERATURE REVIEW
Brand extension or brand stretching is a marketing strategy in which a firm marketing a product
with a well-developed image uses the same brand name in a different product category. brand
equity (definition: the net worth and long-term sustainability just from the renowned name). An
example of a brand extension is Jello-gelatin creating Jello pudding pops. It increases awareness
of the brand name and increases profitability from offerings in more than one product c The new
product is called a spin-off. Organizations use this strategy to increase and leverage ategory.
A brand's "extendibility" depends on how strong consumer's associations are to the brand's
values and goals. Ralph Lauren's Polo brand successfully extended from clothing to home
furnishings such as bedding and towels. Both clothing and bedding are made of linen and fulfill a
similar consumer function of comfort and hominess. Arm & Hammer leveraged its brand equity
from basic baking soda into the oral care and laundry care categories. By emphasizing its key
attributes, the cleaning and deodorizing properties of its core product, Arm & Hammer was able
to leverage those attributes into new categories with success. Another example is Virgin Group,
which was initially a record label that has extended its brand successfully many times; from
transportation (aeroplanes, trains) to games stores and video stores such a Virgin Megastores.
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In the 1990s, 81% of new products used brand extension to introduce new brands and to create
sales.Launching a new product is not only time consuming but also needs a big budget to create
awareness and to promote a product's benefits.Brand extension is one of the new product
development strategies which can reduce financial risk by using the parent brand name to
enhance consumers' perception due to the core brand equity.
While there can be significant benefits in brand extension strategies, there can also be significant
risks, resulting in a diluted or severely damaged brand image. Poor choices for brand extension
may dilute and deteriorate the core brand and damage the brand equity. Most of the literature
focuses on the consumer evaluation and positive impact on parent brand. In practical cases, the
failures of brand extension are at higher rate than the successes.
Some studies show that negative impact may dilute brand image and equity. In spite of the
positive impact of brand extension, negative association and wrong communication strategy do
harm to the parent brand even brand family.
Product extensions are versions of the same parent product that serve a segment of the target
market and increase the variety of an offering. An example of a product extension is Coke vs.
Diet Coke in same product category of soft drinks. This tactic is undertaken due to the brand
loyalty and brand awareness they enjoy consumers are more likely to buy a new product that has
a tried and trusted brand name on it. This means the market is catered for as they are receiving a
product from a brand they trust and Coca Cola is catered for as they can increase their product
portfolio and they have a larger hold over the market in which they are performing in.
that the products can act to replace each other. Lastly, the Transfer describes the relationship
between extension product and manufacturer which reflects the perceived ability of any firm
operating in the first product class to make a product in the second class. The first two measures
focus on the consumers demand and the last one focuses on the firms perceived ability.
From the line extension to brand extension, however, there are many different types of extension
such as "brand alliance", co-branding or brand franchise extension Tauber (1988) suggests
seven strategies to identify extension cases such as product with parent brands benefit, same
product with different price or quality, etc. In his suggestion, it can be classified into two
category of extension; extension of product-related association and non-product related
association. Another form of brand extension is a licensed brand extension.
In this scenario, the brand-owner works with a partner (sometimes a competitor), who takes on
the responsibility of manufacturing and sales of the new products, paying a royalty every time a
product is sold.
Categorization theory
Researchers tend to use categorization theory as their fundamental theory to explore the
effects of brand extension. When consumers are faced with thousands of products to choose
amongst, they are not only initially confused, but try to categorise by brand association or image
given their knowledge and previous experience. A consumer can judge or evaluate the extension
product with his or her category memory. Consumers categorise new information into specific
brand or product class label and store it. This process is not only related to consumers
experience and knowledge, but also involvement and choice of brand.If the brand association is
highly related to extension, consumer can perceive the fit among brand extension. Some studies
suggest that consumer may ignore or overcome the dissonance from extension especially
flagship product which means the low perceived of fit does not dilute the flagships equity.
Literature related to negative effect of brand extension is limited and the findings are
revealed as incongruent. The early works of Aaker and Keller (1990) find no significant evidence
that brand name can be diluted by unsuccessful brand extensions.Conversely, Loken and
Roedder-John (1993) indicate that dilution effect do occur when the extension across
inconsistency of product category and brand beliefs. The failure of extension may come from
difficulty of connecting with parent brand, a lack of similarity and familiarity and inconsistent
IMC messages.
Equity of an integrated oriented brand can be diluted significantly from both functional
and non-functional attributes-base variables, which means dilution does occur across the brand
extension to the parent brand.
These failures of extension make consumers create a negative or new association relate to parent
brand even brand family or to disturb and confuse the original brand identity and meaning.
In addition, Martinez and de Chernatony (2004)classify the brand image in two types: the
general brand image and the product brand image. They suggest that if the brand name is strong
enough as Nike or Sony, the negative impact has no specific damage on general brand image and
the dilution effect is greater on product brand image than on general brand image.
Consequently, consumers may maintain their belief about the attributes and feelings about parent
brand, however their study does show that brand extension dilutes the brand image, changing
the beliefs and association in consumers mind. The flagship product is a money-spinner to a
firm. Marketer spends budget and time to create maximum exposure and awareness for the
product. Theoretically speaking, flagship product is usually had the top sales and highest
awareness in its product category. In spite of Aaker and Kellers (1990) research which reports
that prestigious brands are not harmed from failure of extensions, some evidence shows that the
dilution effect has great and instant damage to the flagship product and brand family. Still, some
studies suggest that even though overall parent belief is diluted; the flagship product would not
be harmed. In addition, brand extension also diminish[es] consumers feelings and beliefs about
brand name. To establish a strong brand, it is necessary to build up a brand ladder.
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Marketers may follow the order and model created by Aake and Keller who are authorities on
brand management, but branding does not always follow a rational line. One mistake can damage
all brand equity. A classic extension failure example would be Coca Cola launching New Coke
in 1985. Although initially accepted a backlash against New Coke soon emerged among
consumers. Not only did Coca Cola not succeed in developing a new brand but sales of the
original flavour also decreased. Coca Cola had to make considerable efforts to regain customers
who had turned to Pepsi cola. Although there are few works about the failure of extensions,
literature still provides sufficient in depth research around this issue. Studies also suggest that
brand extension is a risky strategy to increase sales or brand equity. It should consider the
damage of parent brand no matter what types of extension are used Example. BIC Pens tried to
produce BIC pantyhose.
CHAPTER-3
RESEARCH
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METHODOLOGY
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RESEARCH METHODOLOGY
The procedure adopted for conducting the research requires a lot of attention as it has direct
bearing on accuracy, reliability and adequacy of results obtained. It is due to this reason that
research methodology, which we used at the time of conducting the research, needs to be
elaborated upon. Research Methodology is a way to systematically study and solve the research
problems
TYPES OF RESEARCH
1
Descriptive research
Analytical research
Qualitative research
Quantitative research
DESCRIPTIVE OR EX-POST FACT RESEARCH:To conduct the research work accurately, we conducted the descriptive research. It
includes surveys & fact-finding inequity of different kinds.
ANALYTICAL RESEARCH:
In it we have to use the fact & information already available & analyses of these to make
an evaluation of project.
QUALITATIVE RESEARCH:In selecting the appropriate research design of the study & the type of data needed, the choice of
data collection techniques is four grouped.
It is done for:1
Consumer needs.
QUANTITATIVE RESEARCH:Page | 50
Quantitative research is obtained to rate the different aspects on parameter i.e. image of
brand, brand equity, expectation of customers, awareness among customer for scheme, switch
ability of customers etc.
Scope of study
1. To determine strength of various brand of cement
2. To know market share of various brand
3. To learn the strength and weakness of various brand
4. To find position of the firm.
5. To find correlation between company and the firm.
6. To study the trend of the market and use it for the profits of the firm.
Research Design
A research design is the arrangement of conditions for collection and analysis data in a manner
that aims to combine relevance to the research purpose with economy in procedure. Research
Design is the conceptual structure with in which research is conducted. Research Design includes
and outline of what the researcher will do form writing the hypothesis and its operational
implication to the final analysis of data. A research design is a framework for the study and is
used as guide in collecting and analyzing the data
The design is such studies must be rigid and not flexible and most focus attention on the
following:
DATA COLLECTION
Data Sources:
There are two types of data were taken into consideration i.e. Secondary data and primary data.
The secondary data has been used to make the analysis because we have no much sufficient time and
resources to collect the primary data.
Secondary Data:
Secondary data is that data which is collected for other purpose. This is indirect collection
of data from sources containing past or recent past information like annual reports, balance sheet,
books, newspapers and magazines etc.
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METHODOLOGY:-
The project include both primary & secondary source of data. The data collected through these
sources has organized, analyzed & interpret so as to draw conclusion &to arrive at appropriate
recommendations.
1. A primary source of data includes the personal interview from various retailers in the
enterprise (area Palampur).
2. The secondary sources of data include annual report, website of ACC Ltd. Company which
contains the details which is helpful for making my project report.
1. COLLECTION OF DATA:-
Both the primary & secondary data has been collected from the market & company. The
company provided the secondary data & primary data is collected through the medium of faceto-face interaction & interview from various Retailers in the filed area of Palampur.
2. ORGANISATION OF DATA:
Data once collected the further processing is done, the data collected by me are carefully
done through in a useful & relevant manner &properly organized.
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3. PRESENTATION OF DATA:`
The data collection is of no use unless & until it is given in the presentable form. Thus
after proper organization the data is given in presentable form with the complete details, with the
help of bar diagram, pie charts etc.
4. ANALYSIS OF DATA:The data is carefully analyzed keeping in the consideration both the pros & cons for the
purpose of arriving at concrete conclusion.
5. INTERPRETATION OF DATA:After carefully analyzed the data, it has been aptly interpreted in order to give concrete
conclusion & proper recommendation.
LIMITATIONS OF THE STUDY
Except the supreme power, the Almighty, no one is impeccable and prowess enough to
accomplish anything without any faults and limitations. A research is no exception. No study is
devoid of certain shortcomings. Some problems encountered in this study are under mentioned:
Some officers were too busy to give a sincere response to investigators & hence their
response may not relate to real picture.
Manager some time denied disclosing some important financial matters, which can be helpful
in this study.
The time period given to me for the completion of the project was short in such a short span
of time it is difficult to complete any project in detail.
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CHAPTER-4
ANALYSIS
&
INTERPRETATION
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Sr. No.
Name of Company
2.
3.
4.
5.
J.K. Cements
etc.
Sr. No.
Name of Company
No. of
Dealers/Retailers
14
2.
Ambuja Cements
3.
Others
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21250 Bags
(3500+1250+3500+3500+1250+1250+1250+250+1250+1250+1250+1250+250+250 = 21250)
Average Sales (P.M.) :
21250 / 14
11750 Bags
(3500 + 1250 +1250 + 250 + 1250 + 3500 +250 +250 +250 = 11750 )
5500 Bags
Sale of cement
1%
28%
38%
acc
ambuja
jp
other
33%
Analysis and Interpretation:After this result we can say that, 99% builders in Palampur region are using branded cement
whereas 1% of them are using local cement. By seeing this chart we can also say that ACC has
captured the major market in the Palampur region.
After this result we can easily say that most of the builders in Palampur region have using
branded cement. And second most important decisive factor is the price of the cement & it does
effect its sale.
By seeing this chart we can directly say that in Palampur region psc quality of cement is used on
mass level.
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Analysis and Interpretation:Generally huge number of builders is getting their cement directly from the warehouse. This
indicates that there is huge difference of price of cement between dealer and warehouse.
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CHAPTER-5
FINDINGS
&
SUGGESTIONS
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FINDINGS
After having rigorous time we come to almost last part of this project.
There are some positive as well as negative points for Indias own cement company, ACC.
ACC has very good grasp over Indian cement market, but if we see in Palampur ACC seems to
struggler with other brand. In the process of completing this project we come to know various
regions beside this.
Some of The Reasons Are Listed Below: ACC has huge demand in the market which is very good for companys aspect, but it is
not possible for ACC to fulfill that demand, which leads to brand switching. This is not
good for company.
In spite of its high price (as compared to other brand and local brand) builders in
Palampur region is ready to pay that price but they were not able to get there supply in
time due to out of stock of ACC.
In doing this project we come to know that ACC has great demand for building private
houses, as people never compromises with quality. But as far as big buyers are concern it
seems opposite builders opt less expensive cement or local brand.
In analysis of one question of questionnaire we come to know that most builders are
ready to use any good cement, they dont have inclination toward any particular cement.
SUGGESTIONS
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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
A high Price creates problems for builders as they cannot always use such high price cement. So,
in my opinion company has to think over the price.
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 and the side of the company is not
prompt, this creates a bad name and again business is lost. Company has to maintain its supply
chain, so that they can fulfill the demand.
On interviewing builders the most important thing they said was about the price flexibility, they
want that the company should give the price flexibility to the dealers/retailers to play in the
market. (As the dealer/retailer may give some discount and gift items to them).
Companys representative should approach the site managers or the builders to encourage them
to use their product on the regular basis. And if it is possible offer them some special discount or
gift items for the bulk buyers.
Company need to spend little more on the product promotion because JO DIKHTA HAI
WAHI BIKTA HAI
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SWOT Analysis explores the relationship between the environmental influences and the strategic
capabilities of an organization compared to its competitors. The importance of SWOT is revealed
by the value of the strategies it generates. A SWOT item that generates no strategies is not
important.
Strengths
It is having a good image and brand loyalty among consumers.
Service is good.
Dhalai karne ke liye people ask for ACC.
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Perceived to be of very superior quality, with high price cement when compared to
others.
Selling form the very first day the shop came in to being & sells easily.
They have same price prevailing for wholesale at dealers/stockiest retailers end..
Weakness
The competitors are doing much promotional activity rather than ACC Limited thats why
it facing more problems in selling of product in the market.
Lack of awareness program for consumers.
Opportunity
Rapid growth is taking place in Himachal Pradesh, Punjab,Chandirah and Haryana.
People are opting for more stable structures and intensive use of cement is taking place,
even government is spending heavily on infrastructure projects. Thus, this is the right
time to fully tap these markets.
As Indian core industry is also growing at rate of nearly 10% per annum, it is having a
good future.
Foreign direct investment in infrastructure sector going to increase in coming years,
which will increase the demand of cement.
Roads are undergoing through the transformation process through which the traditional
method of road building will be replaced by modern concrete roads.
Threats
Large number of players in cement industry makes it more competitive for ACC to
carefully price its product and at the same time satisfy its dealers and customers.
Players such as Jaypee Cement, Ambuja Cement, and other local brand are eating up
considerable market share.
Due to Indias exponential growth many new international cement companies are
expected to come in Indian market in coming years which will bring a tide of change and
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can start price war. And some south Indian companies are also coming in Himachal
Pradesh and selling at very less price as compared to ACC.
The emergence of small players in this market may increase the competition and start the
malpractices, and heavy discounts to retailers. They can also influence many retailers by
giving better profit margin, and other benefits.
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CHAPTER-6
CONCLUSION
CONCLUSION
After the survey of ACC Cements in markets and inputs from the dealers/retailers it is found that
the ACC Cement capture the more market as compare to the other brand because of quality and
quantity of this cement is so good. Customers are satisfied with it. The pricing of ACC is more
than other cement brands in the market but it does not affect its sales due to its brand image and
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trust in the customers. And the dealers as well as customers are very happy to use this product
and assured that they will promote the product in future also. The others brands are working in
clusters their sale comes from some specified clusters due to their incentive policies to particular
dealers. But the sales of ACC Cements are found all the areas visited to a satisfactory level.
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BIBLIOGRAPHY
Books:
Websites:
www.acclimited.com
www.ibef.org/industry/cement.aspx
www.askwiki.com
www.acchelp.com
www.askacc.com
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QUESTIONNAIRE
MALE
FEMALE
3. AGE GROUP:BELOW 30
3 0 - 45 YEAR
45 60
ABOVE 60
4. ORGANISATION:-
5. DESIGNATIONS:-
8. WORK DURATION:-
ACC
JAYPEE
AMBUJA
OTHERS
AVAILABILITY
APPROACH
SUPPLY
PACKAGING
QUALITY
NO
PPC
PSC
14. MENTION THE OTHER CEMENT COMPANIES WHO HAVE APPROCHED FOR
THIS PROJECT..
SIGNATURE
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