everest project - anurag dubey
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DECLARATION
I hereby declare that the Project entitled
“MARKETING STRATERY OF EVEREST CEMENT
SHEETS”
Being submitted in partial fulfillment for the
award of the degree of Master of Business
Administration to “Rani DurgavatiVishwavidyalaya, Jabalpur” is the authentic
record of my own work done under the guidance
of Mr.Shrikant Ratle3y .
The matter reported in this project has not been
submitted earlier for the award of degree.
Jabalpur
Name
Anurag Dubey
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A
PROJECT REPORT
ON
“MARKETING STRATERY OF EVEREST CEMENT
SHEETS” Submitted for the partial fulfillment for
the Degree of
MASTER OF BUSINESS ADMINISTRATION
Semester III
Session 2009-
2011
Under the Guidance of
Sapan Verma Shrikant Ratley
(Company Guide) (College Guide)Submitted by:
Anurag Dubey
Ern No. BC/25274
Submitted To:
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SHRI RAM GROUP OF INSTITUTES JABALPUR
RANI DURGAVATI VISHVAVIDYALAYA JABALPUR
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CERTIFICATE
This is to certify that Mr.Anurag Dubeystudent of Master Of Business Administration (III
Semester) at Shri Ram Institute Of Management has
completed the project entitled “MARKETING
STRATERY OF EVEREST CEMENT SHEETS”
He has submitted the project in partial fulfillment of the degree of MASTER OF BUSINESS
ADMINISTRATION from RANI DURGAVATI
VISHVAVIDYALAYA, Jabalpur for academic year
2009-2011. This report is up to the standard both
in respect of its content and it’s literally
presentation for being referred to the examinees.
I wish him all the success.
Dr.Rajiv Singh
Principle SRIT (MCA)
Shri Ram Group of Institute,
Jabalpur (M.P.)
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Acknowledgement
I would like to express my gratitude to all those
who made completion of my dissertation possible. I
would like to thank my college authorities for
providing me the opportunity to work with one of
the most prestigious organization.
I express my sincere gratitude to my Industry
Mentor and other executives who provided me
full support and encouragement to complete this
work.
I am deeply indebted to my Faculty Guide Mr.Shrikant Ratley whose help, stimulating
suggestions and encouragement helped me in at
all times in research and for writing of this thesis.
So many others who have been associated with
this work directly or indirectly, all have my
sincere thanks.
Especially, I would like to give my special thanks
to my parents, their love and blessings enabled
me to complete this work
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CONTENTS
1) Executive summary………………………………………………1
2) Objectives……………………………………………………….. 2
3) Limitations………………………………………………………. .3
4) Company profile………………………………………………… 4
5) Research methodology………………………………………...... 44
6) SWOT Analysis ………………………………………………….58
7) Findings………………………………………………………… 59
8) Suggestions……………………………………………….…… 61
9) Conclusion……………………………………………………… 63
10) Bibliography…………………………………………………….. 64
11) Questionnaire………………………………………………….. 65
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Executive Summary
In this project I have analyzed though questioner the
current status of company product in the market of
cement sheet industry and try to find how many retailer
are satisfied with company product and which other
building material sold by retailers.
During my study I found 60% retailer are satisfied with
company product and 40% are not satisfied with our
company product because low availability of product in
many area, and many retailer thought that the price of
our company product high then other company product
so in ruler market the customer most prefer the lowprices cement sheet they don’t know the advantage of
our product so company should aware to customer with
our product through advertisement and company should
care about price .
OBJECTIVES
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As part of post graduation course, I underwent internship at
EVEREST INDUSTRIES LTD. The title of the project is
“MARKETING STRATERY OF EVEREST CEMENT SHEETS”
The main objectives of this project were:
To know the satisfaction level of the retailers
towards the Everest cement sheet.
To know the market share covered by our company
and its competitors.
To know about the future requirement of our product
by the companies ,and domestic use.
To find out the other building materials sell by the
trailer.
Some of the secondary objectives of the project were:
To comparatively analyses the product of other companies.
To know and overcome on the limitations (if any).
To find out the best brand in market.
Limitation of the project:
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• The time factor was a great limitation, i.e. just 1 months time
for summer project. If I have more time then I can survey of
costumer and can find feed back of customer.
• Data available on internet is limited.
• Not good responses from retailer.
• Long distance among retail shops.
COMPANY PROFILE
EVEREST INDUSTRIS LTD.11
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Type Public
Founded 1934
Headquarters New Delhi
Managing Director Mr. M.L Gupta
Chairman A. V. Somani
Industry Building solution
Turn Over 800Crore
Factories 5
Retail Points 6000(Approx)
Employees 1285 employees
Market share 13% (Approx)
INTRODUCTION ABOUT THE COMPANY
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EVEREST INDUSTRIES Ltd. formerly known as Eternity Everest.
Everest industries ltd., a pioneer building solutions company has been
a trusted name for 70years. Its strategic investments in technology
have allowed it to continually introduce innovative products in the
market. Products manufactured by Everest are distinguished for their
high performance, durability and architectural versatility. All Units are
IS/ISO certified.
Everest Industries Limited is one of India’s fastest growing building
solution companies. A pioneer in the field of fibre cement building
products, its strategic investments in technology over the last seven
decades have allowed it to continually introduce innovative and
modern building products with a promise of Strength, Speed and
Safety in construction.
The company was founded in 1934, Everest is one of the most
respected and renowned business entities in India, and has dominated
the market ever since. The company has a pan India presence with a
large distribution network and state-of-art manufacturing facilities at
kymore, Nasik, Coimbatore, Kolkata and Roorkee
Everest follows a solutions approach where various products and
services are integrated to meet customer’s needs. Everest offers a
complete range of building solutions. These building solutions are
1. Everest Roofing Solution
2. Everest Ceiling Solution
3. Everest Wall Solution
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4. Everest Floor Solution
5. Everest Cladding Solution
6. Everest Door
1.ROOFING SOLUTIONS -
Corrugated Fibre Cement Roofing System –
Everest Corrugated Sheets and made from the finest quality of
cement and fibre through a specially developed fibreorientation process. They undergo rigorous quality control-
standards which are higher than ISI-giving you a product of
lasting value.
Modern Roofing System with HIPP Technology-
Everest Hi-Tech is a modern non-asbestos roofing systemusing the specially developed HIPP technology (High
Impact Poly Propylene). It is manufactured in a world class
production facility, conforming to all relevant international standards.
Everest Hi-Tech is an ideal roofing and cladding solution, for factories
and warehouses and can be used in industries such as petrochemicals,
food, pharmaceuticals, automobiles, engineering, metallurgy etc.
Everest modern roofing system is an excellent roofing and claddingsolution for hotels, resorts and villas.
2. CEILING SOLUTIONS –
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Smooth surfaces and clean lines are typical characteristics of a
contemporary, beautiful minimalist building. It is possible to
create designs with Everest Ceiling Solutions, which blend
functionally, so that the finish of the room becomes just asimagined.
Everest Ceiling Solutions provide aesthetically pleasing finishes
that interiors and are available in the form of:
Everest Acoustic Ceiling
Everest Designer Ceiling
Everest Standard Ceiling
3. WALL SOLUTIONS –
Everest Wall Solutions are synonymous with hassle-free, speedyconstruction. Based on the concept of strength, Speed and Safety
in construction, the solution leverage space utilization to the
maximum. While offering design flexibility, these solution
maintain their resistance to moisture, termite and fire and are
available in form of:
Everest wall Boards
Everest Designer Wall Boards
Everest Heavy Duty Wall Boards
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Everest Solid Wall Panels
4. CLADDING SOLUTION –
Its that simple clarity of design that forces you to pause the first
time it catches your eye. An object with a combination of
functional perfection and timeless style continues to attract
inspite of passing years and changing fashions. Everest Cladding
Solutions help you create a building that possesses this
enigmatic concept and are available in the form of:
Everest Siding
Everest Colour Cladding
5. STEEL BUILDING SOLUTION-
Everest Steel Solution provides infinite possibilities in steel
Construction. These can be used for industries, airport, stations,
residential complexes, stadiums, warehouses, villas, sports
facilities, site offices, canteen and utility buildings.
buildings are 100% pre engineered and pre fabricated in state-of-
the-art manufacturing facility. Everest steel building solutionsensure Strength, Speed, and Safety, and are available in form of:
Everest pre-engineered Steel Buildings
Everest Smart Steel Buildings
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Everest has 74 years of roofing experience, covering over 1 billion
sq.m. Everest Hi-Tech is a unique product manufactured in India
using technology from Saint Gobain. It is a corrugated cement roofingsheet reinforced with a blend of strong factory-produced fibres
including HIPP(high impact polypropylene).These imported fibres
replace asbestos and give you roof high- impact resistance. Everest
Hi-Tech provides high sound insulation from rain and thermal
insulation from heat, saving you huge costs of additional insulation.
Everest Hi-Tech mets all international norms of safety , environmentand pollution control for building products .They can be used in all
manufacturing and exports oriented units, warehouse and modern
factory sheds.
Everest Hi-Tech is available in a range of colours. These pre-painted
sheets require low maintenance and resist the impact of weather,sunshine, UV rays, algae and chemical corrosion.
The advantages of Everest Hi-Tech everlasting roofing system are:-
• Asbestos free
• Low maintenance costs
• Durability
• Economical
• Weather resistance
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• Aesthetics
• Protection and comfort
ABOUT FIBRE CEMENT BOARD
Welcome to the world of FIBRE CEMENT BOARD Multipurpose
Cement Boards. These are fiber cement building boards
manufactured from a homogenous mixture of Portland cement
treated cellulose fibers, quartz and other select mineral fillers. The
cement acts as a hydraulic binder while the cellulose fibers get
interlocked with the cement and quartz matrices, thereby making the
boards stronger and more durable.
FIBRE CEMENT BOARD is a multipurpose cement board that can
be used in a wide variety of segments like residential, commercial
and industrial installations.
The Applications range from False Ceilings to Partitions and paneling, door shutters to Flooring, back liners to prefabricated
structures, and so on. The limit is, what is set byyourImagination.
Veneer Wallpaper Texture Paint Polish
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Coating
Termite/timber borer proof
Moisture resistant
Fire retardant
Asbestos free
Environment friendly
Easy to decorate and paint
Impact Resistance
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EVEREST PRESENT IN INDIA
And now, it is in Pre-Engineering Steel Buildings and Smart Steel
Building for Industrial, Commercial and Residential sector.
Everest offers a versatile range of fibre cement products covering both
roofing as well as boards. Its product range has gained wide
acceptance in Asia, Africa, South Pacific and Europe.
Its “Everest” brand enjoys huge brand equity. Besides roofing, the
company has introduced a range of new generation products called
FIBRE CEMENT BOARD Classic for varied applications in interiors.
FIBRE CEMENT ROOFING
Everest Hi Tech: modern, asbestos-free, fibre cements roofing system
that uses HIPP (High impact polypropylene) Technology.
Everest is having the biggest and fastest growing sector of the Indian
economy
• Housing and industrial sector
• Rural sector
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Everest today understands the bottom of Indian pyramid thorough a
vast all India sales and distribution network .Millions of Indian
families are sheltered by Everest roofing.
Everest has transformed from a roofing products company into an
organization which offers range of solutions for all building
construction needs.
EVEREST VISION
Everest will be the deepest penetrated housing and building solutions
provider to deliver strength speed and safety to its customers in all its
target markets.
EVEREST MISSION
Their mission is to achieve a sales turnover of Rs 1,000/- crores with a
net profit of Rs 100 crores by 2010-11
Everest has launched its new way as EVEREST STEELBUILDING
SOLUTIONS. It is almost one year old. It provides the following
building accessories:
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Everest today has
Sales of 800 cr.
5 state-of-the-art ISO: 14000 certified manufacturing facilities
1285 highly qualified employees
Over 6000 retail points
Fast growing export market in Europe, Africa, Australia & Asia
• Roof Curbs
• Adjustable/ Fixed Louvers
• Translucent Panels
• Gravity Ventilators
• Day lighting Panels
• Turbo ventilators
• It has two parts:
• PRE-ENGINEERING BUILDING SOLUTIONS
• SMART STEEL BUILDING SOLUTIONS
PRE-ENGINEERING BUILDING:
It is the fastest system of industrial construction. There are several
applications of Pre-Engineering Building (PEB). The main
applications of PEB are:
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• Factory buildings
• Institutional buildings
• Recreational facilities
•Agricultural storage
• Commercial spaces
• Warehouses
• Military building & Aviation hangers
SMART STEEL BUILDING:
It is 100% customized steel buildings. The applications of Smart SteelBuilding are:
• Commercial & Office buildings
• Industrial utility buildings
Site offices & residences
• Farm houses
• Restaurants
• Automobile showrooms
Design & Engineering:
• Everest’s Design & Engineering department has over 50 highly
qualified engineers, checkers, detailers, designers & architects.
• Everest uses ultra- modern & highly sophisticated design
software, Everest –MBS to design your building with the highest
precision & optimum use of steel.
• Software like Stadd Pro, X steel & Stru cad are used for
detailing & structure analysis.
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Manufacturing:
• The Everest plant at Roorkee ( Uttarakhand ) is equipped with
the most sophisticated manufacturing equipment- Automatic
cutting, wielding, painting, & roll forming machines.
Automatic welding lines using PTW (pull through welder)
Technology with LINCOLN™ welders from USA.
OXYGEN shield air plasma for error- free & ready to
weld edges.
Nesting software for most accurate & optimized sections
out of steel plate.
Electrodes & other consumables from ESAB™, Arctec™,
ADOR™ welding.
Logistics & project management:
• Everest’s dedicated logistics & project management team works
relentlessly to ensure that your building reaches the site on time.
To ensure speed, each consignment dispatched is tracked using
computerized vehicle tracking management systems. Our project
management team already posted at your site comprises a team of
dedicated Everest Erectors and our full time Everest project engineer.
This ensures best co-ordination with your team & delivers highest
levels of strength, speed & safety.
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BOARDS OF DIRECTORS
Particulars Designation Category Qualifications Functional areas
M. L. GuptaManaging
Director Executive
B. Tech
(Hons)
Technical / General
Management
Manish SanghiCoo and
Director
Executive
Director
B.E. (Mech.),
PGDM (IIM)
General
Management
A. V. Somani ChairmanPromoter
Director M.Com, MBA
Business
Management
Sandeep
Junnarkar Director
Professional
IndependentLLB, Solicitor
Banking, Corporate,
Exchange Control &
Securities Laws
MohanlalBhandari
Director ProfessionalIndependent
B.Com, FCA Finance, Accounts &Taxation
Y.S.RaoExecutive
Director
Executive
Director
B.Sc(Engg)
Mechanical
Manufacturing
Operation General
Management
M. N. Nirula Director Professional
IndependentB.Sc.(Elect) General management
NATIONAL NETWORK
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There are three main network types, these are:
Factory
Offices
Sales Depot
Factory:
There are five factories of Everest Industries Limited. They are
situated at:
• Bhagwanpur (U.K.)
• Kymore (M.P.)
• Kolkata
• Podanur (Tamil Nadu)
• Nasik (Maharashtra)
Company’s Plants and their products
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Works Establishment Products
Kymore 1934 Asbestos Cement Corrugated (CBS) roofing
sheets And Other Moulded Goods
(Accessories)
Kolkata 1938 Asbestos Cement Corrugated (CBS) roofing
sheets And Other Moulded Goods
(Accessories)
Podanur 1953 Asbestos Cement Roofing sheets – CBS and
CTS profiles, Non-Asbestos Roofing
(Hitech) sheets - Terracoata Red, TropicalGreen & Ivory White Shades And Other
Moulded Goods (Accessories)
Lakhmapur 1994 Asbestos Cement Corrugated Roofing sheets,
Other Moulded Goods (Accessories), Non-
Asbestos Flat Boards, Compressed Boards
(Endura), Colour Compressed Boards And
Solid Wall Panels
Bhagwanpur June 06 Flat Boards, Chrysotile Asbestos Cement
Corrugated (CBS) roofing sheets, Other
Moulded Goods (Accessories), Solid Wall
Panels and Light Grade structural Frames
(LGSF)
Offices:
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Offices of Everest Industries Limited are situated at:
• Delhi• Ahmadabad
• Jabalpur
• Kolkata
• Nasik
• Mumbai
• Bangalore
• Coimbatore
• Cochin
• Chennai
Sales Depot:
There are twenty-seven Sales Depot around the country of Everest
Industries Limited. They are situated at:
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Company Sales Depot (Zone Wise)
Central Zone
Kymore Depot
Allahabad Depot
Allahabad Darwaza Depot
Kymore Depot
Indore Depot
Kanpur Depot
Kota Depot
Varanasi Depot
Bilaspur Depot
South Zone
Podanur Depot
Banglore Depot
Nellore Depot
Chennai Depot
Palghat Depot
Hubli Depot
Coinbatore Depot
Madurai Depot
Manglore Depot
Cochin Depot
East Zone
Guahati Depot
Patna Depot
Ranchi Depot
Burdwan Depot
Balasore Depot
West Zone
Hariala Depot
Valsad Depot
Kolhapur Depot
Bhiwandi Depot
Lakhmapur depot
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Rourkela Depot
Kharagpur Depot
Jamshedpur Depot
Barrackpore Depot
North Zone
Roorkee Depot
Merrut Depot
Chandigarh Depot
Rajpura Depot
Jaipur Depot
Faridabad Depot
Karnal Depot
Delhi Depot
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Production Facilitiy
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Production Facilities – Bhagwanpur
Everest Industries has established a green field, ultra-modern
manufacturing unit, spread over an area of 21 acres at Bhagwanpur,(Haridwar district), Roorkee (Uttrakhand) . The plant manufactures
the following products - Roofing Sheets, Everest Fibre cement
Boards, Pre Engineered Steel Buildings and Smart Steel Buildings.
This plant has an installed capacity of 50,000 tonnes of Fibre Cement
Boards, 40, 000 metric tones of steel fabrication products and 1-lakh
tonnes of roofing products per annum.
The company believes in conserving the environment and hence,
there are several trees planted in the factory premises. The factory hasmade arrangements for water harvesting. All water from the rooftop
and open spaces is channelised through the storm water drains and
directed to the six recharge wells which are strategically located.
Apart from these wells there are 2 ponds created to trap sudden heavy
downpour. The factory does not discharge any of its waste into the
environment. Moreover, any industrial waste produced in the
Bhagwanpur unit is recyclable.
The plant also organizes safety training at the plant for their workers'
welfare by creating awareness among the workers about ways of
handling industrial materials, operating cranes and working with
electrical circuits.
Products
Wall Solutions
Ceiling Solutions
Floor SolutionsChrysotile Asbestos Cement Corrugated (CBS) Roofing Sheets
Solid Wall Panels
Pre Engineered Steel Buildings
Smart Steel Buildings
Other Moulded Goods (Accessories)
InitiativesDevelopment of Green Belt
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INDUSTRY STRUCTURE AND DEVELOPMENT
Everest Industries Limited pioneered fibre Cement Roofing Industryin India by establishing its first plant in the country in 1934 at
Kymore, MP. During 2005-06, the industry reached a market size of
2.35 million MT with a CAGR of growth of 17.1% in the last 3 years.
The industry recorded a significant growth of 17.8% during 2005-06
in comparison with 16% growth it witnessed in the same period in the
previous year. The market share of the Company stood at 15%. This
high industry growth has resulted in many new players entering into
the market. The industry is witnessing an unprecedented capacity build up with very large capacities being set up in North and West
India.
INDUSTRY OUTLOOK & OPPORTUNITIES
Roofing
The Fibre cement industry is an important constituent of economic
development of the country and has unique place in construction and
building material sector due to two reasons:
The fibre cement roof is commonly used in villages and small towns
for houses and cattle sheds, godowns, shops, workshops etc.
Industrial houses for their industrial sheds & go-downs alsoextensively use it.
Fibre cement industry uses substantial amount of fly ash as raw
material in its products keeping the environment clean.
India is growing at a GDP of 8%. This high growth is reflected in all
the sectors of the economy namely the manufacturing sector, service
sector as well as the agriculture sector. The government is putting
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special focus on the rural economy and this is expected to give a boost
to the use of Fibre cement roofs.
The industrial sector is witnessing high growth with capacities getting
increased through expansions/diversifications and up new Greenfieldunits. The growth of fibre cement roofing industry depends on
prosperity of rural/industrial sector. Both these sectors have seen
healthy growth in last 2 years. This is reflected in fibre cement roofing
industry, as it saw a significant growth of around 17.8 % in year 2005-
06 in comparison with previous year.
The growth was particularly high in states like Uttar Pradesh, Gujarat,
Maharashtra, West Bengal, Tamil Nadu. Good monsoon continues toremain crucial factor for agriculture as well as for Industry, as it brings
higher agriculture productivity and thus the rural masses having
higher disposable income can graduate to fiber cement roofs from
thatch roofs. Steel will continue to remain its major competitor and
any upward revision in steel prices will bring increased demand to this
Industry.
Boards
Fibre cement boards are typically used for false ceilings, partitions,
panelling and prefabricated structures. There is a major growth in each
of these applications with the growth of the economy. The users are
increasingly finding that the fibre cement boards are far better
substitutes in terms of resistance to moisture, fire and termites. There
is also an increasing need for faster and cleaner construction, whichcan be done using the fiber cement boards.
D. INDUSTRY – THREATS, RISKS AND CONCERNS
The growth in the industry has resulted in many new players entering
in this already competitive market. Any new additions in the capacity
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either by existing players or through new entrants will always remain
prime concern.
Increase in input costs like the cost of cement, asbestos fibre, fuel etc
is a major concern for the industry.
The malafide campaign against asbestos from certain sectors has given
totally erroneous information to the general public and decision
makers. This has so far not affected the sales of the industry. The
industry association Asbestos Cement Products Manufacturers
Association (ACPMA) continues with its initiative to counter the
malafide anti asbestos campaign and successfully managed to make
the general public and key decision makers aware that there was norisks associated with the use of asbestos to manufacture of fibre
cement products, when all necessary precautions are taken.
RISK MANAGEMENT
In accordance with the Clause 49 of the Listing Agreements with
Stock Exchanges, the Company has already appointed Risk consultantto assist the Company to lay down procedures/system for speedier
assessment of risk, information to Board of Directors and steps to
mitigate/ minimize the risk.
E. COSTS AND PROFITABILITY
The Company is always committed to reduce its costs through better negotiation with its raw material suppliers, transporters and increase
its profitability by de-bottlenecking, efficient use of plant and
machinery resulting in better yield, scrapping unwanted depots,
concentration on markets with low freight, increased productivity and
reduction on overheads.
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F. INTERNAL CONTROL SYSTEM & ADEQUACY
The Company's internal control system has always been adequate to
ensure that all its assets are safeguarded and protected against loss
from unauthorized use and disposition. It has evolved financialreporting on monthly basis for all its 4 factories as independent profit
centres. These systems and measures are constantly checked by the
Internal Auditors of the Company, on the basis of an approved Audit
plan of the Audit Committee. The Audit Reports are placed before the
Audit Committee, on quarterly basis, who after reviewing the same
ensures that Audit findings are complied with by the management.
The management at the subsequent meetings by way of an Action
Taken Reports tables the compliances. All observations made by theAudit Committee are duly considered and acted upon by the
management of the Company.
G. HUMAN RESOURCES
Industrial Relations at all manufacturing units of the Company have
been normal and peaceful. The Company as on 31st March 2009 had
1020 permanent employees.
H. CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis Reportdescribing the current industry structure, outlook & opportunities
reflect the Company's assessment and perception of the situation. It
may differ materially depending on the environmental regulations
stipulated globally and also the changes in government regulations,
policies and other related factors.Comparitive literatur
Industrial Relations
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Industrial relations continue to be cordial and harmonious at all Units.
Employees at all levels are extending their fullest co-operation for the
various cost reduction measures of the Company.
Research and Development Efforts
During the year under review, the Company continued its Research &
Development efforts in respect of conventional and non-conventional
Fibres and production technology for manufacture of Fibre Cement
Sheets/ Calcium Silicates Boards.
During 2009-10, an amount of Rs.3.66 Lakhs had been incurred on
R&D efforts by way of revenue expenditure.
Specific Areas in Which R & D is Carried Out by the Company
1. Different combinations of Fibres were developed to yield more
economic fibre furnishes.
2. Use of Pozolonic Material – Fly Ash in the manufacture of Fibre
Cement Sheets.
3. Usage of Cellulose for part substitution of Asbestos Fibre.
4. Recycling of broken waste in the production process.
5. Development of Non Asbestos Calcium Silicate Boards.
Benefits Derived as a Result of the Above R & D:
Future Plan of Action:
1. Use of alternative Fibres in the production of Sheets.
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2. Development of Poly Propylene strip reinforced Sheets.
3. Development of different formulations of asbestos-free
Flat Boards for different applications.
Expenditure on R & D:
Recurring expenditure: Rs.3.66 lakhs Capital Expenditure: NilTotal :
Rs.3.66 lakhs R&D expenditure as a percentage of total turnover :
0.01% of FC Sheets
Opportunities and Threats:
Asbestos Cement Sheets are mainly used as roofing materials in ruraland semi-urban housing and by industries and poultry sector.
Asbestos Cement Sheets are gaining popularity as they are
inexpensive, need no maintenance and last long when compared to
competing products such as thatched roofs, tiled roofs and galvanized
iron sheets.
According to the information gathered by us almost 80-85% of rural
people use thatched roof/tiles for the shelter. Thatched roof needregular replacing and tiled roof needs continued maintenance.
Therefore whenever the economic conditions improve the first choice
of the rural poor to replace the roof over their head is the affordable
and relatively durable product Asbestos Cement Sheets.
Thus we see lot of untapped potential for usage of Asbestos Cement
Sheets in rural areas.
The Central and State Governments have been giving lot of thrust for
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housing for rural poor and Asbestos Cement Sheets are widely used
for this purpose.
Both the existing and new manufacturers are venturing into setting up
of new asbestos cement sheet producing plants. This could increasethe competition and will have an effect on the margins.
The increase in fiber cost and imposition of Excise Duty are also
matters of concern. The abnormal increase in cement cost not only
pushes up the raw material cost but also in slowing down construction
activity in rural areas.
However the fact that industry as a whole grew by about 16.5% during
the last year indicates a growing demand for our products and thisgrowth in demand should balance increase on the supply side over the
medium term. The continuous efforts being made to capture rural
markets should also increase the demand.
Lack of entry barriers:
Lack of entry barriers is attracting lot of new entrants into this line of business. Since the industry is continuing to grow at the rate of about
15-16% per annum this should not be a major threat. Moreover we
have the following advantages:
1 (1) Our manufacturing units are nearer to the consuming
centers and thus we have the freight advantage.
2 (2) We have an established brand name.
3 (3) Being the second largest player in the industry we have
economies of scale.4 (4) We have a widespread dealer net work.
HLL-
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The Company's business consists of the following product lines:
1) Fiber Cement Sheets (Asbestos as well as Non Asbestos)
2) Autoclaved Aerated Concrete Blocks (Light Bricks)
3) Aerocon Panels
4)Industrial Products (Thermal Insulation Products, Jointing and
Engineering Divn.)
Fiber Cement Sheets contributed about 87% of the total revenue
during the year under review. The Company with 10 manufacturing
lines continues to be the largest producer of Fiber Cement Sheets in
the country. With these plants and an extensive dealer network the
company has the market reach in all parts of the country.
With the boom in the construction sector and also general growth
predictions quite a few new units have come up in sheeting industry.
The overall demand growth is very healthy at about 15% but the
industry is currently facing a situation of over supply. However,
because of the excellent CHARMINAR brand image company's
products find preferential acceptance.
The Company believes, demand in this sector will continue to grow asthere is no rationally acceptable alternative to Fiber Cement Sheets.
The prices of the substitute products, mainly GI sheets, the strength,
life and insulation properties continue to provide economic rationale
for use of Fiber Cement Sheets.
With this optimistic out look the Company has set up a green field
sheet manufacturing plant at Sathariya Industrial Development Area,
Jaunpur, and U.P which commenced commercial production from 3rdJuly 2006. With this addition company's production capability has
risen to about 7 lac tones per annum. Efforts to enhance production
and productivity at the existing plants are continuing. The Company is
also exploring possibilities of establishing new plants at different
locations in the country.
The new generation building products AAC Blocks and Aerocon
Panels now find greater acceptance amongst the Architects and
Builders. Additional capacities will be planned to capitalize on the
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expected growth of demand in these product lines.
Risks
The Company has established a formal Risk Management Plan. A
Corporate Risk Management Committee has been constituted which
goes in to the process of risk assessment, its mitigation and monitoring
and reporting. Implementation and review of the risk management
initiatives are periodically reported to the Board.
Spurt in prices of raw materials like Chrysotile Asbestos Fiber and
Cement has posed a major challenge. Another major cause of concernis that of transport cost which is sensitive to diesel prices. Over a
period of time Company has established good relations with reputed
Chrysotile Asbestos Fiber suppliers which help to avoid uncertainty in
supply and also reasonable stability of prices. The Company avoids
spot purchases of fibers.
Ban or restrictions on use of Asbestos, including Chrysotile, though a
distinct possibility continues to remain a perceived risk. Company is
fully satisfied that the available scientific evidence clearly establishes
that Chrysotile variety of Asbestos does not pose unacceptable
environmental or health hazards. Anti Asbestos groups are actively
pursuing to secure ban on use of white asbestos as well. Scientific
evidence however, is against their propaganda.
The Asbestos Information Centre and Asbestos Cement Products
Manufacturing Association, bodies promoted by Indian Manufacturershave been promoting awareness programmes and campaigns to
highlight the differences between white (Chrysotile Asbestos) and
other (blue and brown) types of asbestos. The education campaigns by
these bodies have resulted in better appreciation of scientific facts
amongst the decision makers. The possibility of restriction of use of
Chrysotile Asbestos is therefore rather remote.
The Company has installed best possible equipment to handle asbestos
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fibre at the work place. The automated handling practices ensure no
exposure for employees in the plants.
BUSINESS SEGMENT ANALYSIS:
The Company's business can broadly be classified into two segments
i.e. Building Products and Other Business. The Heavy Engineering
business located at Kolkata has already been disposed off.
BUILDING PRODUCT SEGMENT:
This segment consists of Fiber Cement Sheets, Autoclaved Aerated
Cement Blocks, Aerocon Panels, and Fiber Cement Boards etc. Fiber
Cement Sheet is the main product line accounting for about 87% of
Company's sales.
Production and sale of Fiber Cement Sheets during the year under
review have been 594465 MT and 544721 MT respectively. Growth
in quantitative sales could not be achieved during the year due to over
supply in the industry by other manufacturers and our own necessity
to balance price and volumes.
During the year the operations of erstwhile Malabar Building Products
Ltd. got integrated with the Company which resulted in rationalization
of distribution and administrative costs.
The new Fiber Sheet Plant set up at Sathariya Dist. Jaunpur U.P.
Commenced commercial production from 3rd July, 2006. The product
available from this facility has helped to reduce freight cost and alsoservice the northern and eastern markets more effectively.
The Company has decided to set up a new Plant with an initial
capacity of 125,000 MT per annum in Orissa. Major part of Plant and
Machinery required for this plant has already been manufactured in-
house by Engineering Division. Orders for other bought outs,
construction and erection have already been placed or finalized. It is
expected that this plant will get commissioned in 2nd half of 2007-08.
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Given the current availability of production capacity in the country in
relation to the demand, the pressure on prices will continue. The
Company believes that due to inherent advantages offered by the
product over the substitutes the demand growth will be healthy in
double digit. With the marketing infrastructure in place and excellent
brand image of Charminar, the Company is confident of gaining a
respectful share in this future growth.
The Autoclaved Aerated Cement Blocks and Aerocon Panels have
gained popular acceptances. It is proposed to enhance capacities by
expansion at existing sites and bringing up new plants. A New Plant
for AAC Blocks is proposed to be established in Western India.
Commercial production from this facility is likely to be in 2008-09.
OTHER BUSINESS:
Thermal Insulation Products and Jointing are other products whichservice the industrial segments.
Thermal Insulation Products however offer opportunities for growth
and the same will be pursued. Due to consistency and superior
properties, company's products are preferred over those of
competitors. Efforts will continue for new applications to expand the
market size.
Internal Control Systems and their adequacy:
The Company has a full-fledged Internal Audit Department headed by
General Manager-Management Audit to review the operational
systems as well as Management Procedures periodically. The
department also reviews the compliance of various laws from time to
time and carries out critical evaluation of the systems and procedures
for better management control. Systems and procedures of the
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Company are designed in such a way to check every transaction at the
next level and give the necessary information to the management.
Periodically the systems will be reviewed by the Department along
with regular checks in key areas.
Periodical Internal Audit Reports are placed before the Audit
Committee of the Board along with the Action Taken/ Proposed to be
taken by Management.
SYSTEMS:
The Company has embarked on a paradigm shift by implementing
ERP on SAP tool wherein the Business procedures, principles and
rules are integrated on a single platform across all the Units, RegionalOffices and depots in India. The ERP will extend to all the functional
areas and will cover Production, Materials, Supply & Distribution,
Human Resource, Projects and Finance.
The development has reached an advanced stage of implementation.
RESEARCH METHODOLOGY
After discussing with Mr. Sapan Verma & Jay Mourya marketing
Head, we decided to divide our time and resources on the basis of
various locations which were to be covered in MP.
1.This data is collected by a survey done on various retailers of
cement sheet in MP. The data is collected according to the
questionnaire prepared by me. I have visited various retail shops
mentioned in my report.
2.I filled up the questionnaire accordingly and make the analysis based
on the information with the help of diagrams. After making the
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analysis I came to conclusion that the demand of our product in the
market is quite very good, and it will be demanded by many retailers
as well as customers in near future.
The information in questionnaire is reliable because it is reflecting
actual market position and it is verified by project guide of company.
Introduction About the Topic
The topic “MARKETING STRATERY OF EVEREST
CEMENT SHEETS”
is related to study of everest cement sheet product image in the market
and company strategy to promote the product in remote areas of
chattarpur.Company offers various schemes to attract the retailers to
increase the demand of the product.
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RESEARCH METHODOLOGY
There were two ways for data collection -
(a) PRIMARY DATA COLLECTION
(b) SECONDARY DATA COLLECTION
Primary Data collection approach-
I followed three way approaches to collect the Primary data. Primarydata collection includes the following ways -
1. Observation- I went on the retail & wholesale outlet.
2. Verbal interaction
3. Survey- I contacted the owners at the outlets for relevant
information. I allowed them to come up with own their views
about the organization with an open end questioner.
Here we include the primary method of survey
Research Instruments:
• Structured Questionnaire- I used a printed questionnaire as my
instrument for conducting the survey.
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Area of Survey:
(Aligarh,Alipura, Bada
Malhera,Barigarh,Buxwaha,Harpalpur,Rajnagar &satai)
Sampling plan:
• Sampling unit - Owners of the retail & wholesale building
material outlets.
•
Sampling size- 56 outlets
• Sampling procedure (Technique)- Random sampling
SECONDARY DATA-
For the secondary data collection, data was not available so secondary
data was collected by through Internet by visiting sites of the company
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Analysis of data
1.. How old the shop is?
10 Years or Less 31
10-20 Years 17
20-50 Years 6
More then 50 2
Total 56
HOW MANY YEAR OLD SHOP
55%30%
11%4%
10 YEAR OR LESS 10-20 Years 20-50 Years More then 50
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CEMENT:
Total Sellers 56
Cement Sellers 40Other Building Material Products
sellers
16
Sales
71%
29%
CEMENT SELLER OTHER BUILDING MATERIAL PRODUCT SELLERS
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CEMENT SHEET sellers out of total seller:
Total Sellers 56
CEMENT SHEET Sellers 22
Other Building Material Products
sellers
34
Sales
0%
39%
61%
cement sheeet Other Building Material Products sellers
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G.I SHEET:
Total Sellers 56
G.I Sheet Sellers 12
Other Building Material Products
sellers
44
Sales
12
44
G.I SHEET SELLER
Other Building MaterialProducts sellers
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2-I served in and I find the satisfaction % of the retailer with everest
Satisfied Not satisfied
60% 40%
0%
10%
20%
30%
40%
50%
60%
SATISFIED
UNSATISFI
3-D Column 1 60% 40%
SATISFI
ED
UNSATI
SFIED
3-In my summer internship I survey in 9 districts and I fill questioner with help of retailer after study of it I find that market share of many company who are in cement
sheet business and find this result.
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Alipura
Aligarh
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Barigarh
buxwaha
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Bada Malhera
harpalpur
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Rajnagar
Satai
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yes no
80 20
The above diagram shows that the retailer which deal in the business
of cement sheet in future.80% persons said yes and 20 persons said no
59
Interested to sell
cement sheet in future
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SWOT ANALYISIS
Strength-
Company have tremendous characteristics like –
• Quality Product
• Brand Image
• Proper Management System
• Revolutionary Technology used.
• Resistant Products (i.e. resistant to Termite, Firer )
• Nation-wide network for distribution of housing products
Weakness
• Not availability product according to demand
• High price compared to other brand.
• Not good replacement of broken sheet
• Low advertisement support
• The product takes big place in shop and needs more care so as to
avoid breaking.
Opportunities
• Customer attitude towards branded product
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• New untapped market in rural areas
• New dealers and distribution channels
Threat
• Threat from new emerging companies.
• Changing business landscape and high competitors.
• Unawareness about cement sheet
• Broken of cement sheet then G.I sheet
FINDINGS
Positive Points:
When I visited in market and discuss with retailer I found good
brand image of everest
Customer are satisfied with Everest product
Negative Points:
When I visited in market I find that the retailer want to sell their
product but they does not found. In every market only one retailer
sell Everest product. Some retailer want to talk with distributer
and like to sell Everest product’s company should provide product
to that retailer.
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Breakage replacement policy of the company is not the highest
effective
The employees and officers of “Everest” do not talk with thegreatest respectful manner with each and every customer, so they
are interested in other Competitors.
EVEREST is not providing any help in meeting of roofers and
advertising facilities, such as, - wall-painting, Boards etc. to
attract the customers.
Breakage replacement policy of the company is not the highest
effective.
Common Points:
Still now, Mostly people are unaware about Cement Sheet
Product.
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During my Internship I found that Charminar and Upal is
the best admirable brand.
There is high breaking in Cement Sheets, while margin is
very short.
This is a seasonally item and maximum cement sheet
companies creates problems of full supply, especially in
season.
SUGGESTIONS
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These 4 weeks in EVEREST INDUSTRIES LTD. have taught me
a great experience. Interacting with retailer, knowing their ideas
and way of thinking had been quiet interesting. Now, I have a
slightly better understanding about people and how they behave. I
met a number of people and each of them was different from each
other. I have learnt a lot about the art of communication after
interacting with different sets of people. I also have better
knowledge about the EVEREST INDUSTRIES LTD. and its
products and thinking about the EVEREST INDUSTRIES LTD .
1. Now, I am giving some recommendations on the basis of the
work I have done in the project and findings. First of all, for
making a bigger identity in consumers’ mind about
“EVEREST CEMENT SHEET” not “EVEREST
SPICES!!” the company should concentrate on aggressive
advertisement for long period of time.
2. Second, the whole employees of the company should think
that customer is God. They are only servers of the customers.
They should concentrate on the way of talking in the greatest
respectful manner with each and every customer, because if
you lose even one customer due to your behave then you will
lose the whole network of the customer.
3. The company should think that, maximum in real life, a
customer does not purchase the best product of the market, a
customer always purchase easily and broad existed product
of the market. For example – AIRTAL & MICROSOFT
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WINDOWS. So, build its wholesale stockiest each and
everywhere, because JO DIKHTA HE VO BIKTA HE.
4. The Company should concentrate on quality of FIBER
CEMENT SHEET because users said that sheets got cracked
when hammered.
5. The company should provide the good replacement facility of
broken cement sheet, to customers.
6. Good quality of fiber tape should be provided for avoidingabove problems.
7. Employee motivation system can be innovated in the
organization
Summary
1) Increase the production.
2) Company should concentrate on production cost to increase its
market share.
3) Make the availability of product near the retailer
4) Distributor should provide the good replacement facility of
brackens cement sheet.
5) Company should concentrate on its promotional activity.
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CONCLUSION
The primary goal of this project report is to identify the current statusof company tough competition in the market by the competitors and
also know about what are the other building material sell by the
retailer and what are there status of there selling and know about
which brand is most popular in current market.
I came across this fact that many companies doesn’t even heard about
FIBRE CEMENT BOARD.so, for overcoming this problem company
should concentrate on promotion programs and advertisements, which
is very necessary for increasing the sale of the company. I got an
opportunity to use my theoretical knowledge which I gained during
my PGDM course into practical way of doing things.
I had got a good exposure of corporate
enviournment while working with EVEREST INDUSTRIES LTD.
and I will be highly oblized if I got the chance of working with thecompany in future.
After making the analysis I came to conclusion that the demand of our
product in the market is quite very good, so company should full fill
the demand by this Everest will make a big giant in building material
industry .
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BIBLIOGRAPHY
Websites-
http:// www.google.co.in
http://www.researchandmarkets.com
http://www.everestind.com
Inputs from mentor Mr. Sapan Verma & Jay Mourya.
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QUESTIONNAIRE
Personal Details:
Owner’s Name…………………….
Address…………………………………….
Birthday……………………………
Anniversary……………………………….
Shop Details:
Name………………………………...
Address………………………………….
Tel.No……………………………
Mob.No…………………………………….
E-mail: ………………………………………….
Q.1. How old the shop is?
10 years or less 10–20 years 20-50 years More than 50
years
Q.2. Business details:
Product Tick Volume in
Quantity
Volume in
Value
Authorized
stockiest
a. Cement
b. Steel
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c. Paints
d. Sanitary
Ware
e.Tiles
f. Cement
Sheet
g. G.I Sheet
h. Color of
Metalroofing
i.Hardware
j. Any Other
Q.3. Are you interested in dealing with cement sheet?
YES NO NOT APPLICABLE
Q.4. Since, when you are dealing in Cement Sheet?
Less than 1
year
Less than 5
years
Less than 10
years
Less than 25
years
More than
25 years
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Q.5. Which Cement Sheets are you dealing?
Brand Name Tick Volume in Quantity Volume in Value
(a) Charminar
(b) UPAL
(c) Everest
(d) jai Kirti
(e) Ramco(f) Visaka
(g) Super
(h) Shakti
(i) Konark
(j) Jaypee
(k) Saurabh
(l) Ankur
Q.6. Sources of supply?
1. Depot Details: ………………………………………..
2. Factory Details: ……………………………………...
Q.7 You deal with Company or Stockiest? (If stockiest then detail
required)
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Brand Stockiest name Address Phone No.
Q.8.What is the present retail price of selling Cement Sheet?
10 ft (3 Meters)
12 ft (3.6 Meters)
Q.9. When did you purchase the material last time?
Ans: …………………………………………..
Q.10.What Price?
Rs. 10 ft (3 Meters) 12 ft (3.6 Meters)
Q.11.What is current purchase price?
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Rs. 10 ft (3 Meters) 12 ft (3.6 Meters)
Q.12. What is your average margin per sheet?
Sheet More than
Rs. 31
Between
Rs. 30-21
Between
Rs. 20-11
Less than
Rs.10
10ft(3 meters)
12ft(3.6meters)
Q.13.Which is the best brand of Cement Sheets available in the
market?
Ans: ……………………………………………..
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