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

Rain Water Harvesting 33



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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

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Interested to sell

cement sheet in future

Yes 80 No 20



``````

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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Everest Project - Anurag Dubey

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