31-08-2012, 11:07 AM
A Study on Dealers Perception Towards Birla Cement with Special Reference to SATNA
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INTRODUCTION
Cement Industry
Cement Industry originated in India when the first plant commenced production in 1914 at Porbandar, Gujarat. The industry has since been growing at a steady pace, but in the initial stage, particularly during the period before Independence, the growth had been very slow. Since indigenous production was not sufficient to meet the entire domestic demand, the Government had to control its price and distribution statutorily. Large quantities of cement had to be imported for meeting the deficit. The industry was partially decontrolled in 1982 and this gave impetus to its pace of growth. Installed capacity increased to more than double from 27 million tons in 1980-81 to 62 million tons in 1989-90.
The cement industry responded positively to liberalization policy and the Government decontrolled the industry fully on 1st March 1989. From 1991 onwards cement industry got the status of a priority industry in schedule III of the industry policy statement, which made it eligible for automatic approval for foreign investment up to 51% and also for technical collaboration on normal terms of payment of royalty.
After the globalization and liberalization of Indian economy, the cement industry has been growing rapidly at an average rate of 9 percent. The country is now the second largest producer of cement in the world next only to China with a total capacity of 217.80 million tones. Additionally, in the last two decades, the industry has undergone rapid technological up gradation and growth, and now, some of the cement plants in India are comparable to the worlds best operating plants in all respects.
Till a few years ago India was importing cement from other countries, as the production could not meet the demand for the whole country. Now the tables have turned as India has started exporting large quantities of cement and clinker to Bangladesh, Nepal, Sri Lanka, Maldives, Mauritius, Africa, Seychelles, Burma, UAE, and Singapore etc.
India is today the second largest producer of cement in world with an installed capacity of close to 217.80 million tons per year. 95 % is consumed domestically and only 5% is exported. Demand is growing at more than 10 % per annum. More than 90 % of production comes from large cement plants. There are a total of 146 large and more than 350 small cement manufacturing units in the country. More than 80% of the cement-manufacturing units use modern environment friendly “dry” process.
Overview of the performance of the Cement Sector
The Indian cement Industry not only ranks second in the production of cement in the world but also produces quality cement, which meets global standards. However, the industry faces a number of constraints in terms of high cost of power, high railway tariff; high incidence of state and central levies and duties; lack of private and public investment in infrastructure projects; poor quality coal and inadequate growth of related infrastructure like sea and rail transport, ports and bulk terminals. In order to utilize excess capacity available with the cement industry, the government has identified the following thrust areas for increasing demand for cement:
• Housing development programmers & Promotion of concrete highways and roads;
• Use of ready-mix concrete in large infrastructure projects;
• Construction of concrete roads in rural areas under Prime Ministers Gram Sadak Yojana.
CURRENT SCENARIO
The Indian cement industry is the second largest producer of quality cement, which meets global standards. The cement industry comprises 130 large cement plants and more than 300 mini cement plants. The industry's capacity at the end of the year reached 188.97 million tons which was 166.73 million tons at the end of the year 2006-07. Cement production during April to March 2007-08 was 168.31 million tons as compared to 155.66 million tons during the same period for the year 2006-07.Despatches were 167.67 million tons during April to March 2007- 08 whereas 155.26 during the same period. During April-March 2007-08, cement export was 3.65 million tons as compared to 5.89 during the same period.
Cement industry in India is currently going through a consolidation phase. Some examples of consolidation in the Indian cement industry are: Gujarat Ambuja taking a stake of 14 per cent in ACC, and taking over DLF Cements and Modi Cement; ACC taking over IDCOL; India Cement taking over Raasi Cement and Sri Vishnu Cement; and Grasim's acquisition of the cement business of L&T, Indian Rayon's cement division, and Sri Digvijay Cements. Foreign cement companies are also picking up stakes in large Indian cement companies. Swiss cement major Holcim has picked up 14.8 per cent of the promoters' stake in Gujarat Ambuja Cements (GACL). Holcim's acquisition has led to the emergence of two major groups in the Indian cement industry, the Holcim-ACC-Gujarat Ambuja Cements combine and the Aditya Birla group through Grasim Industries and Ultratech Cement. Lafarge, the French cement major has acquired the cement plants of Raymond and Tisco. Italy based cement has acquired a stake in the K.K. Birla promoted Zuari Industries' cement plant in Andhra Pradesh, and German cement company Heidelberg Cement has entered into an equal joint-venture agreement with S P Lohia Group controlled Indo-Rama Cement.
INTRODUCTION OF BIRLA CORPORATION LIMITED
History of the company
The company was founded by Late Shri G.D.Birla and was incorporated on 25th August 1919, in the name and style of The Birla Jute Manufacturing Company Limited. A man of vision and enterprise, he set up the first Indian –Owned Jute Mill near Kolkata which marked not only the birth of the company but also the beginning of the Birla Industrial Group in India. The company grew steadily under his guidance in the earlier years. Thereafter Shri M.P.Birla took over the reins of the company and he helped transform it from a jute mill to a leading multi-product, multi-location corporate with widespread activities.
Today, the product range includes cement, jute goods, vinoleum floor covering, auto trims and steel castings. After the demise of Shri M.P.Birla in 1990, Smt.Priyamvada Birla took over as the Chairman of the company and under her Chairmanship; company crossed the Rs.1,000 cores plus turnover mark. After the demise of Smt.Priyamvada Birla on 3rd July 2004, Shri R.S.lodha took over as the chairman of the company and under his Chairmanship, company has attained new heights. The name of the company was changed to Birla Corporation Limited with effect from 27th October, 1988 to establish the size, image and conglomerate character of the company.
QUALITY CONTROL AND ASSURANCE
In order to ensure quality, effective control has to be exercised throughout the process of production. The control procedures cover all aspects of cement manufacture from quarry operation, handling, mixing and grinding to packing. In order to achieve quality assurance, most of the cement plants have established facilities for sophisticated controls. Some of the important controls introduced in the cement industry as follows: -
• Computerized mine planning and deposit evaluation to enable optimum use of raw material
• Online X-ray fluorescence spectrometer for raw material control and raw mix design.
• Better aided instrumentation and process measurements using X-ray analysis, gas analyzers, temperature and pressure measuring devices, etc.
• Centralized kiln control system in conjunction with expert control systems for process and operation control.
• Continuous monitoring of quality in production by plants as well as by the certifying agency, namely, Bureau of Indian Standards (BIS) under compulsory Certification Scheme.
CEMENT DIVISION:-
Cement is the primary product of the company and accounts for around 90% of the turnover of the company. The company has seven cement plants at four locations, namely, Satna Cement Works ( SCW ) and Birla Vikas Cement ( BVC ) at Satna (Madhya Pradesh ), Satna Cement Works ( SCW ) and Birla Cement Works ( BCW ) at Satna ( M.P. ), Satna Cement Works ( DCW ) and Durga Hitech Cement ( DHC ) at Satna ( West Bengal ) and Cement Grinding Unit at Raebareli (Uttar Pradesh). The present installed capacity of cement is 58.80 lac metric tones per annum.