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Established in 1873 – 1st cement plant. German based company with Highly integrated technology.

• Western and Northern Europe • Eastern Europe-Central Asia • North America • Asia-Australia-Africa • Asia-Pacific • Group Services

Expansion across more than 50 countries. Geographically Divided into six Group areas:

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1st Largest Aggregates in the World.

2nd Largest Concrete Producer in the World.

Global, integrated supplier of building materials

3rd Largest Cement Producer in the World.

ProductsCement

Aggregates

Concrete

Building Materials

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Rural Impact…..”..First Mover Effect”

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Changing Profile of Rural Markets

Earlier, Traditional Four P’s of Marketing -> Product, Price, Place and Promotion.

Now, Marketing Mix to Improve four A’s -> Awareness, Affordability, Availability,

Acceptability

(Tools)

(Challenges)

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The “Rural” Opportunity• Total retail market size: Rs. 9300 billion• Total rural retail : Rs. 1500 billion in 2007 (incl. FMCG, Durables,

Agricultural inputs including tractors)• Organised retail market size: Rs.350 billion (around 4% of total market)• Market size of organized rural retail is negligible at present

R ural Market S iz e E s timation*

0

500

1000

1500

2000

2500

2000 2005E 2010F 2015FYea r

Rs.

Bill

ion

R s . B illion

Source: Industry estimates, YES BANK analysis

* Organised rural retail market is negligible at present

mycem mycemFactors that have led to Rural Purchasing Power The increase in procurement prices [the government sets the mini. Support price – MSP] has contributed to arise in rural demand.A series of good harvest on the back of several good monsoons boosted rural employment in agricultural and allied activities.Government Schemes like NERGS [National Rural Employment Guarantee Scheme] guarantees 100-days of employment to one number of every rural household reduced underemployment and raised wages – Outlay of US $13.9billion.Farmers benefited from loan waivers [introduced in last Union Budget].Bharat Nirman program with an outlay of US $34.84 billion for augmenting rural infrastructure is another step that has helped the rural economy.

THE PURCHASING POWER IS REFLECTED IN RURAL GROWTH ACROSS A NUMBER OF CATEGORIES. [ E.g., Fiscal 2009-10 FMCG rural volume growth is estimated to be 5% to 12% higher than urban growth across a number of categories].

mycem mycemSome Facts of Massive Rural Markets in India - What’s happening? FMCG has grown at robust rate of 23%[last Year]As durables shrink in urban India, rural market is witnessing 15% growth rate and 60% of the durables market lies in rural India.Telecom in rural India is growing at 31%.State Bank of India (SBI) has started zero balance bank account program for villagers. It hopes to cover 100,000 villages by 2012. the bank has tied up with India Post for some services.Maruti Suzuki, India’s leading manufactures, today sells 5% of vehicles in the rural market. Company expects this number to rise to 15% in the next two years.60% of India’s US $15 billion annual consumption of gold and gold jewelry is from rural and semi-urban areas. The Tata’s have launched mass market jewelry brand –’Gold Plus’. In rural areas gold Jewelry is not for ornamentation; it is a safety-net for emergency situations.Chick Shampoo Created the jasmine variant [in tune with the culture of woman using Jasmine flavors to style their hair.]Philips is moving forward with the creation of low-cost smokeless “gas stoves” and “lanterns” that will be useful to such markets.

mycem mycemSome Facts of Massive Rural Markets in India-What’s

happening? (..Cont)Voltas is trying to sell air conditioners to the rural rich – despite facing difficulties in penetration due to widespread and scattered nature of territory.Television has invaded rural India. It reaches even very small villages through community sets. TV has changed all that, and created aspirations where once there was resistance to change.LG Electronics developed a customized TV (cheap and capable of picking up low intensity signals) for rural markets and christened it “Sampoorna”. It sold 1-lakh sets in the first yr.Some FMCG players continue to expand rural penetrations [e.g., HUL’s Project Shakti, Tata Tea’s Gaon Chalo].Coca-Cola’s parivartan program has trained more than 6,000 retailers to display and stock products.Godrej introduced three brands of Cinthol, Fair Glow and Godrej (soap) in 50-gram pack priced at Rs 5/-, Addidas and Reebok increased their Sales by 50% in rural market by reducing prices.Videocon introduced a washing machine without a drier for 3000/-, DCM Shriram develops a low cost water purifier especially for rural areas.Dabur has created a training module ASTRA (advanced sales training for retail ascendance) in several regional languages. A number of auto companies have launched rural specific campaigns.

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Company Transportation Network Customer

Product

Committment Integrity Behaviour

Communication

Service

Quality

mycem mycemNews Paper Advertisement…

mycem mycemInitiative…

• Sub Dealer Listing – Dealer Wise• ERP Code Generation for Sub Dealer

Dispatch Details Quarterly Cheque

• Shop/Wall Painting• Technical Service • Mason Meet• Contractor Meet

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Schemes For Sub Dealers...

• Company Qtrly Cheque Scheme• Torch Scheme(At present

running)

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Compelling!The Change is..

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