A Study on Marketing of Blended Cement in My Home Industries Ltd.

Hyderabad. By

Mr.GOUTAM PRASAD SHUKLA

A Project Report/ Thesis submitted in partial fulfillment of the requirements for the Masters in Business Administration

TRAINING & ADVANCED STUDIES

IN MANAGEMENT AND COMMUNICATIONS LTD. www.tasmac.ac.in

TASMAC House, TASMAC Road, Viman Nagar, Pune – 411 014 (India)

30.05.2008

2

A Study on Marketing of Blended Cement in My Home Industries Ltd.

Hyderabad. By

Mr.GOUTAM PRASAD SHUKLA

A Project Report/ Thesis submitted in partial fulfillment of the requirements for the Masters in

Business Administration

TRAINING & ADVANCED STUDIES

IN MANAGEMENT AND COMMUNICATIONS LTD. www.tasmac.ac.in

TASMAC House, TASMAC Road, Viman Nagar, Pune – 411 014 (India)

30.05.2008

3

The Project Report / Thesis of

Mr.GOUTAM PRASAD SHUKLA

Titled

A Study on Marketing of Blended Cement in My Home Industries Ltd.

Hyderabad.

Is approved and is acceptable in quality and form

Mr.K.SUDHINDRA M.B.A. in Marketing Marketing Manager

My Home Industries Ltd.Bangalore Research Guide’s Name,

Qualification and Designation

30.05.2008

4

STUDENT DECLARATION

I hereby declare that the Project Report / Thesis titled

A Study on Marketing of Blended Cement in My Home Industries Ltd.

Hyderabad.

Submitted in partial fulfillment of the requirements for the

MASTERS IN BUISINESS ADMINISTRATION

to TASMAC is my original work and submitted for the award of any other Degree, Diploma, Fellowship or other similar title of prizes

Place : GOUTAM PRASAD SHUKLA Date: Regd.No.01/DL/EMDB/456

5

ACKNOWLEDGEMENT I extend my sincere thanks to my guide at collage Ms.Mala Chadda, who has given her full support and guidance to successfully accomplish my Project Work. My reverence and gratitude goes to Mr.Sai Prakash Sr. Vice President in My Home Industries Ltd. for making me in permission to carry out my Project work in such work. My genuine thanks to Mr.K.Sudhindra, Marketing Manager in My Home Industries Ltd.lending his valuable time and kind co-operation in the accomplishment of my task. I would like to extend my sincere gratitude to entire faculties of TASMAC of Bangalore and I am very much thankful to my family members, friends and my colleagues for their encouragement and suggestions given in the course of my Project Work. (GOUTAM PRASAD SHUKLA)

6

SUMMARY Marketing of blended cement includes lot of factors like availability, seasonable

conditions, Profit and Quality. In this study we are going to classify types of Blended

cements and manufacturing process and on what basis Blended cement is moving into

the market. We are going to discuss what are the inputs required to promote the

Blended Cement.

Cement Industry in India is on a roll at the moment. Driven by a booming real estate

sector, global demand and increased activity in infrastructure development such as state

and national highways, the cement industry has witnessed tremendous growth.

Production capacity has gone up and top cement companies of the world are eager to

enter the Indian market, thereby sparking off a spate of mergers and acquisitions. Indian

cement industry is currently ranked second in the world.

My Home Industries Limited was the most ambitious diversification of the My Home

Group. My Home Industries Limited started as 600 TPD mini cement plant in 1998, is

now a major plant with a production capacity of 3.40 Million Tonnes per annum.

My Home Industries Limited got ISO 9001 Certification from AQA International, LLC,

USA. It is not only maintaining the ISO standards, and also tries to improve upon it day

by day in order to equip itself for ISO 14000. In view of enoroumus growth the

company has been consistently achieving in short span of just over decade, a joint

venture proposal has been successfully completed with effect from 1st April 2008 from

The CRH group a world’s second largest group in construction industry.

7

CONTENTS

Page No. 1. TITLE ……………………………………………………………… 2-4 2. ACKNOWLEDGEMENT……………………………………………… 5 3. SUMMARY……………………………………………………………… 6 4. CONTENTS…………………………………………………………….. 7 5. LIST OF TABLES, FIGURES AND APPENDICES…………………. 8-21 6. INTRODUCTION………………………………………………………. 22-33 7. MAIN BODY…………………………………………………………….. 34-92 8. CONCLUSIONS………………………………………………………… 93-94 9. RECOMMENATIONS…………………………………………………. 95-96

10. SWOT ANALYSIS………………………………………………………. 97-101 11. LIMITATIONS /BIBLIOGRAPHY……………………………………. 102-103 12. ADVERTISEMENT……………………………………………………… 104-112 13.QUESTTIONARIES……………………………………………….……… 113-114

8

LISTS OF TABLES,

FIGURES AND

APPENDICES

9

FOR CONSUMERS

KIND OF THE CEMENT THAT CUSTOMER USES

KIND OF THE CEMENT SAMPLES PERCENTAGES % OPC 21 42 PPC 26 52

SLAG 3 6 TOTAL 50 100

0

10

20

30

40

50

60

OPC PPC SLAG

PERCENTAGES

INTERFACES :

• 42 % of consumers are using OPC cement. • 52 % of consumers are using PPC cement. • 6 % of consumers are using Slag cement.

10

PREFERENCES MADE BY THE CONSUMER TO BUY THE CEMENT

PREFERENCES SAMPLES PERCENTAGES% CLIMATIC CONDIATION 12 24 STRENGTH 35 70 SETTING TIME 2 4 COLOUR 1 2

TOTAL 50 100

SAMPLES

0

5

10

15

20

25

30

35

40

CLIMATICCONDIATION

STRENGTH SETTINGTIME

COLOUR

SAMPLES

INTERFACES:

• 24 % of consumers are preferring for Climatic Condition. • 70 % of consumers are preferring based on strength of the cement. • 4% of the consumers are preffering based on the setting time. • 2 % of the consumers are preffering based on the color.

11

THE FACTOR WHICH MADE CONSUMER TO BUY BLENDED CEMENT

PREFERENCES SAMPLES PERCENTAGE % COST 17 34 QUALITY 17 34 AVAILABILITY 16 32 TOTAL 50 66

SAMPLES

15.4

15.615.8

1616.2

16.416.6

16.817

17.2

COST QUALITY AVAILABILITY

SAMPLES

INTERFACES:

• 34 % of consumers are preferring based on Cost of the cement. • 34 % of consumers are preferring based on Quality of the cement. • 32 % of consumers are preferring based on Availability of the cement.

12

STRENGTH OF BLENDED CEMENT

PREFERENCES SAMPLES PERCENTAGE % GOOD 32 64 AVERAGE 18 36 TOTAL 50 100

SAMPLES

64%

36%

GOODAVERAGE

INTERFACES:

• 64 % of consumers are giving good feedback on strength of Blended cement. • 36 % of consumers are giving average feedback on strength of Blended cement.

13

COLOR OF BLENDED CEMENT

PREFERENCES SAMPLES PERCENTAGE % GOOD 23 46 AVERAGE 27 54 TOTAL 50 100

SAMPLES

46%

54%

GOODAVERAGE

INTERFACES:

• 46 % of consumers are giving good feedback on Color of Blended cement. • 54 % of consumers are giving average feedback on Color of Blended cement.

14

AVAILABILITY OF THE BLENDED CEMENT

PREFERENCES SAMPLES PERCENTAGE %

EXCELLENT 2 4 GOOD 44 88

AVERAGE 4 8 TOTAL 50 100

05

1015202530354045

EXCELLENT GOOD AVERAGE

SAMPLES

SAMPLES

INTERFACES:

• 4 % of consumers are giving Excellent feedback on availability of Blended cement. • 88 % of consumers are giving good feedback on availability of Blended cement. • 8 % of consumers are giving average feedback on availability of Blended cement.

15

THE FACTOR WHICH MADE MAHA SHAKTI KNOWN TO THE CONSUMERS

PREFERENCES SAMPLES PERCENTAGE %

DEALERS/RETAILERS 23 46 STOCK AVAILABILITY 3 6 WORD OF MOUTH 24 48 TOTAL 50 100

SAMPLES

0

5

10

15

20

25

30

DEALERS/RETAILERS STOCK AVAILABILITY WORD OF MOUTH

SAMPLES

INTERFACES:

• 46 % of consumers are came to know about Maha Shakti cement by Dealer/Retailers. • 6 % of consumers are came to know about Maha Shakti cement by the Stock Availability in the

Godown. • 48 % of consumers are came to know about Maha Shakti cement by Word of Mouth.

16

FOR DEALERS / RETAILERS

KIND OF THE CEMENT WHICH DEALERS/RETAILERS SELL

KIND OF THE CEMENT SAMPLES PERCENTAGE % BLENDED CEMENT 29 58

OPC 21 42 TOTAL 50 100

0

20

40

60

BLENDEDCEMENT

OPC

PERCENTAGESPERCENTAGES

INTERFACES:

• 58 % of Dealer/Retailers are Selling Blended Cement. • 42 % of Dealer/Retailers are Selling Blended Cement.

17

PREFERENCES MADE TO THE DEALER/ RETAILERS TO SELL THE MORE BLENDED CEMENT

PREFERENCES SAMPLES PERCENTAGES% CONSUMER PREFFERED 13 26 QUALITY 19 38 AVAILABILITY 9 18 PROFITABILITY 9 18

TOTAL 50 100

05

10152025303540

PERCENTAGES%

INTERFACES:

• 26 % of Dealers/ Retailers say they are Consumer Preffered. • 38 % of Dealers/ Retailers say they are Quality based. • 18 % of Dealers/ Retailers say about Availability of the cement. • 18 % of Dealers/ Retailers are say Profitability of the cement.

18

THE QUALITY RATING OF MAHA SHAKTI CEMENT

PREFERENCES SAMPLES PERCENTAGES%

EXCELLENT 1 2 GOOD 32 64 AVERAGE 17 34

TOTAL 50 100

SAMPLES

EXCELLENT2%

GOOD64%

AVERAGE34%

INTERFACES:

• 2 % of Dealers/ Retailers are Rating Excellent. • 64 % of Dealers/ Retailers are Rating Good. • 34 % of Dealers/ Retailers are Rating Average.

19

AVAILABILITY OF MAHA SHAKTI CEMENT

PREFERENCES SAMPLES PERCENTAGE% YES 48 96 NO 2 4

TOTAL 50 100

`

INTERFACES:

• 4 % of Dealers/ Retailers are not satisfied with the availability of Maha Shakti Cement. • 96 % of Dealers/ Retailers are satisfied with the availability of Maha Shakti Cement.

SAMPLES

YES96%

NO4%

20

ENQUIRIES OF MAHA SHAKTI CEMENT IN THE MARKET

PREFERENCES SAMPLES PERCENTAGE % GOOD 13 26 AVERAGE 29 58 BELOW AVERAGE 8 16 TOTAL 50 100

26

58

16

0

10

20

30

40

50

60

GOOD AVERAGE BELOWAVERAGE

PERCENTAGE %

INTERFACES:

• 26 % of Dealers/ Retailers are rating enquiries of Maha Shakti cement in the market is Good. • 58 % of Dealers/ Retailers are rating enquiries of Maha Shakti cement in the market is

Average. • 16 % of Dealers/ Retailers are rating enquiries of Maha Shakti cement in the market is Below

Average.

21

BRAND PROMOTIONAL ACTIVITIES OF MAHA SHAKTI CEMENT

PREFERENCES SAMPLES PERCENTAGES% EXCELLENT 1 2 GOOD 8 16 AVERAGE 21 42 BELOW AVERAGE 20 40 TOTAL 50 100

2

16

4240

0

5

10

15

20

25

30

35

40

45

EXCELLENT GOOD AVERAGE BELOWAVERAGE

PERCENTAGES%

INTERFACES:

• 2 % of Dealers/ Retailers are Rating Brand Promotional activities of Maha Shakti cement Excellent.

• 16 % of Dealers/ Retailers are Rating Brand Promotional activities of Maha Shakti cement Good.

• 42 % of Dealers/ Retailers are Rating Brand Promotional activities of Maha Shakti cement Average.

• 40 % of Dealers/ Retailers are Rating Brand Promotional activities of Maha Shakti cement Below Average.

22

INTRODUCTION

23

HISTORY OF CEMENT

It must interesting to know how cement is made today vis a vis the historical

background. Ever since civilizations stepping in the earth, people sought a material that

would bind stones into a solid, formed mass. The Assyrians and Babylonians used clay

for this purpose, and the Egyptians advanced to the discovery of lime and gypsum

mortar as a binding agent for building such structures as the Pyramids. The Greeks

made further improvements and finally the Romans developed cement that produced

structures of remarkable durability. The secret of Roman success in making cement was

traced to the mixing of slaked lime with pozzolana, a volcanic ash from Mount

Vesuvius. This process produced cement capable of hardening under water. During the

middle Ages this art was lost and it was not until the scientific spirit of inquiry revived

that we rediscovered the secret of hydraulic cement -- cement that will harden under

water. Most of the building foundations in the Roman Forum were constructed of a

form of concrete, placed in some locations to a depth of 12 feet. The great Roman baths

built about 27 B.C., the Coliseum, and the huge Basilica of Constantine are examples of

early Roman architecture in which cement mortar was used. Portland cement today, as

in Aspdin's day, is a predetermined and carefully proportioned chemical combination of

calcium, silicon, iron, and aluminum. Natural cement gave way to portland cement,

which is a predictable, known product of consistently high quality. Aspdin established a

plant in Wakefield to manufacture portland cement, some of which was used in 1828 in

the construction of the Thames River Tunnel. But it was almost 20 years later when J.

D. White and Sons set up a prosperous factory in Kent that the portland cement industry

saw its greatest period of early expansion, not only in England, but also in Belgium and

Germany. Portland cement was used to build the London sewer system in 1859-1867.

Thomas A. Edison was a pioneer in the further development of the rotary kiln. In1902,

in his Edison Portland Cement Works in New Village, NJ, he introduced the first long

24

kilns used in the industry-150 feet long in contrast to the customary 60 to 80 feet.

Today, some kilns are more than 500 feet long. Parallel improvements in crushing and

grinding equipment also influenced the rapid increase in production. Since grinding

process consumes most of the energy various grinding systems like ball mill/vertical

roller mill/Roller presses has been the result of technological developments. Blending

takes place in silos with air blown in from the bottom to aerate the contents. Various

new designs were also developed to increase the efficiency of mixing.

Types of cement:

Ordinary Portland Cement(OPC):

The ordinary portland cement is popularly known as grey cement which is produced by

grinding clinker with 5% gypsum . It is used in all general concreate construction, mass

and reinforced concreate. It accounts for about 70.60% of the total production

Portland Pozolona Cement(PPC):

It is cheaply manufactured because it uses flyash /burntclay/ coal waste as the main

ingredient. PPC has a lower heat of hydration which isd of advantage in preventing

cracks where large volumes are being cast. PPC accounts for 18.3% of the production

Portland Blast Furnace slag cement(PBFSC):

It is made by grinding granulated blast furnace slag,stell industry by product (upto

65%),gypsum 5% and clinker(balance). PBFSC has a heat of hydration even lower than

PPC and is generally used in construction of dams and similar massive construction. It

contributes nearly 10% to the total.

White Cement:

Basically it is OPC: Clinker using fuel oil (instead of coal) and with iron oxide content

below 0.4% to ensure whiteness. Special cooling technique is used. It is used to enhance

25

aestheic value, in tiles and for flooring. White cement is much more expensive than

grey cement.

Specialized Cement:

Oil Well Cement :is made from clinker with special additives to prevent any porosity.

Rapid Hardening Portland Cement : It is similar to OPC, except that it is ground much

finer, so that on casting the compressible strength increases rapidly. Water proof

Cement: OPC with small portion of calcium stearate or non-saponifibale oil to impart

water proofing properties

Uses of cement:

1. Ordinary Portland Cement (OPC):

Presently Bureau of Indian Standard has classified OPC in three grades based on the

strength ofcement. These grades are:

• 1. Grade -33-IS-269-1989

• 2. Grade -43-IS-6112-1989

• 3. Grade -53-IS-12269-1987

These types of cement are suited for all modern types of constructions including all

kinds of masonry and concrete works such as pre-cast and pre-stressed concrete. They

are also suitable for all kinds of repair works in masonry and concrete The higher the

grade of cement used , the greater would be the economy , durability and technical

advantages . Moreover construction time is also reduced.

Blended cement:

It is obtained by mixing portland clinker , gypsum and other insert materials in suitable

proportions and grinding the mixture to get a thorough and intimate mix.

26

• Portland Pozzolana Cement (PPC) - Clinker +Gypsum+Pozzolana (Flyash, burnt

clay etc)

• Portland blast furnace slag -Cement Clinker +Gypsum+granulated slag

• Masonry Cement -Cement Clinker +Gypsum+Pozzolana (Limestone Powder

admixtures etc.

2) Portland Pozzolana Cement (PPC):

Suitable for most of the applications as stated in OPC ideally suited for domestic

consumption like plastering, brickwork, mass concreting works like dams, large

foundation. This cement enchances the impermeability and cohesiveness of concrete.

As a result durability is enhanced. It also generates low heat of hydration.

It is cheaply manufactured because it uses flyash /burntclay/ coal waste as the main

ingredient. PPC has a lower heat of hydration which isd of advantage in preventing

cracks where large volumes are being cast. PPC accounts for 18.3% of the production

3.Slag Cement:

Common application are similar to those of OPC. However besides that it has more

sulphate resistance properties than OPC and is suitable for coastal construction.

It is made by grinding granulated blast furnace slag, steel industry by product (up to

65%),gypsum 5% and clinker(balance). PBFSC has a heat of hydration even lower than

PPC and is generally used in construction of dams and similar massive construction. It

contributes nearly 10% to the total.

4.Masonry Cement:

Exclusively meant for masonry works and plaster only.

5.Low heat portland Cement:

Grinding and chemical composition are similar to those of OPC. All applications

requiring very high early strength, very high early removal of form works, very high

handling of pre-cast element, high grade pre cast and prestressed concrete product, slip

form , cooling tower and prill tower.

27

6. Sulphate resistant cement:

The chemical composition is designed in such a manner that C3A content in cement

restricted to 5% and other chemical constituents are similar to OPC. Used in structures

in contact with soil or water having enough sulphate concentration.

7. Oil well cement:

This is a special kind of cement for use in the drilling of wells to fill the space between

the steel lining tubes and the well wall. Its sets slowly in order to give the slurry made

with it sufficient time to reach the large depths of the oil wells. However once set it

develops strength rapidly and remains stable at high temperature.

8. White cement:

It is primarily used for decorative processes and also manufacture of titles. The raw

materials are so chosen that the maximum iron-oxide content is strictly limited to 1%.

Variety of colours can be obtained by the addition of pigments.

9. Super sulphate cement:

Super sulphate cement is made by intergrinding, a mixture of 80-85% selected

granulated slag with 10-15% calcium sulphate and about 5% of portland clinker. It may

be applied where high sulphate, acid and organic oil attacks on structure is expected.

10. High alumina cement:

The chemical composition is designed in such a manner that the total alumina content is

at least 32%. This cement is ideally suited for high temperature castable refractory.

11.Grey Portland cement:

Chemical composition is similar to OPC except the following limitations which ensures

very early strength, increased cohesiveness and increased durability factor towards

chemical attack . All applications where high-strength concrete is required ideally

suited for railway prestressed concrete sleepers, bridges and slipform construction .

28

COMPANY PROFILE MY HOME INDUSTRIES LTD. was promoted by Dr.Rameswar Rao.J and Assocaites.

The company had set up a dry process Cement plant with a capacity of 600 TPD

(1,98,000 M.T per annum) at Mellacheruvu Village, Nalgonda District in Andhra

Pradesh at a total cost of about Rs.78.32 Crores which was financed by way of share

capital of Rs.32.36 Crores and term loans of Rs.45.96 Crores from Financial institutions

and banks. The Unit has commenced trial production in March,1998 and the

commercial production was declared in July, 1998. In order to compete with the market

players and reduce the average cost of production. It has enhanced its capacity to 1500

TDP in March 2000.

With a view to capture the growing opportunate demand, the Management of the

company had decided to take up the expansion by way of setting up Unit-II Green Field

Cement Project, at the same location with a capacity of 2000 TPD (6,60,000 M.T per

annum). The proposed Unit-II will enable the company to maximize its profitability by

optimum utilization of the technology, manpower and capital. The cost of the proposed

expansion Unit II is estimated to Rs.102.10 crores, which will further reduce the cost

per M.T of installed capacity Apart form that, the cost of production will substantially

reduce due to reduction in cost of power, fuel, financial charges and other fixed over

heads on account of application of the large scale economics due to higher volume of

production and sales. It would also enable the Company to withstand against the

considerable competitive pressure from other large scale units in the Country and also

to create wider brand loyalty for the product. Now the company’s rated capacity is 3.20

million tones per annum which is likely to go up to 4.20 million tonne per annum by

September end of the current year since the company had already setup grinding unit

plant at Vizag with capacity of 1 million tones per annum grinding capacity and 2.0

29

million Green field plant at Dachepalli Guntur District. With all future capacity

expansion plans of the company, the company poised to grow up to 8.00 million tonne

per Month by 2010 and 2011 which will contribute to nations 5 % requirements.

In view of enoroumus growth the company has been consistently achieving in short

span of just over decade, a joint venture proposal has been successfully completed with

effect from 1st April 2008 from The CRH group a world’s second largest group in

construction industry had made 50:50 joint venturewith My Home Industries Ltd. This

joint venture agreements have been entered by both groups in view of acclaiming and

becoming a Major South Indian Player in cement industry with an ambitious growth

and expansion plans.

DETAILS OF THE COMPANY: Name of the Company : MY HOME INDUSTRIES LTD Location of the Unit : Mellacheruvu Village & Mandal,

Kodad (Taluq), Nalgonda District. Andra Pradesh

Corporate Office : “My Home Hub” 3rd Block, 9th Floor, Survey No.79, Madhapur Hyderabad – 500 081 Promoter : Dr. Rameswar Rao.J Industry : Cement Product : Cement Group concerns : My Home Constructions Ltd. My Home Estates Pvt. Ltd. My Home Power Ltd.,

30

MANAGEMENT FUNCTIONS

HUMAN RESOURCE MANAGEMENT: After the company does its manpower planning it gives advertisements in the

newspapers and journals as an outside recruitment for the required number of

employees. At lower levels at times employee recommendations are considered.

Selection is done on the basis of attitude, aptitude, experience and interviews.

Promotion is based on merit as it is determined by job performance and by analysis of

employee potential for promotion. In this way they ensure that competence shall be the

fundamental determinant of progress. It ensures efficiency in the organization.

As far as the wage structure is concerned there is a particular pattern or policy framed

by the company. As the company is just five years old they have not yet stressed more

on the training and development of the employees. The managers on a continuous basis

they were sent to seminars conducted by outsiders. The company is planning for the

training of the employees to reduce cost and improve efficiency thereby motivating

them to perform well and grow with the organization.

The hours of work for the employees are from 9:30 in the morning to 6.00 in the

evening and for the workers at the factory work on continuous shift basis with an hours

rest interval. The company looks after the welfare of the employees and the workers,

very well, as they provide for canteens and rest rooms at the factory. As far as medical

facilities are concerned reimbursement is allowed for employees as agreed and housing

facilities, club membership and other recreation facilities are provided for the top

management. The company formed employee’s co-operative society at factory for

welfare of the employees.

31

MARKETING MANAGEMENT: Marketing Department gives details relating to SWOT analysis, its promotional

policies, pricing policies, the distribution network, the company’s competitors

information and the sales of the company.

SWOT analysis is the way of analyzing the company’s strength and weaknesses, which

are internal to the company and opportunities and threats, which are external to the

company.

Strengths and Weaknesses: Besides professional management the strength include good quality product, brand

image, wide marketing network. Expansion Unit – II will make the unit economically

sustain in the long run.

Opportunities and Threats:

The slow down in the economy and unfavorable market conditions have an impact in

the economy but at present the economy is moving upwards and so the company can

increase its profitability. It has established its brand name in a very short period and is

enjoying good brand image in the market with its good quality product.

The company’s competitors are Grasim, ACC, Zuari , Kesoram Cement, Rassi Cement,

Coromadel Cement, Priyadarshini Cement among the well established cement

companies. The cement Produced by the company is of high quality and confirms to the

ISI standards. As far as the SPA are concerned the company advertises in print as well

as electronic media. The company advertises through, Highway Hoardings, Shop

Painting, Wall Painting, Bus Pannels, Pole Ads, Bus Paintings and also through

32

Televisions by slides screening in Cinema Theaters and Radio Jingles. Apart from that

the company also advertises though New Year Calendars, PVC Banners, Auto covers,

Pocket calendars, Stickers and pre printed Banyans with Company logo. The company

also conducts Dealers meets, Mason meets, Architects meet and Engineers meet for

better understanding and promotion of the product.

Prices of cement, are totally market driven and fluctuate heavily. The company fixes its

prices from time to time to absorb the market. Inspite of the cut throat competitive

market environment the company has been successfully envisaging to target at highest

possible realizations.

The Marketing Department is headed by the Sr.Vice President (Marketing) assisted by

General Manager, Sr.Deputy General Managers and Marketing Managers. There are

various regional offices at different locations to cater to the needs of the local people,

which are headed by the Marketing Manager/ Regional Managers.

The company has a wide network of dealers to reach the rural markets. The company is

manufacturing Portland Pozzolona Cement, which consumes less clinker and reduces

the cost of production. Apart from the dealers, the other customers are mainly the

Builders, individual and Government agencies.

PRODUCTION MANAGEMENT: Production Management is concerned with the production cycle, the plant layouts. It

states the whole process of conversion of the raw materials to the finished goods.

The whole process of the preparation of the cement is stated here. The products of the

company are Ordinary Portland Cement (OPC) and Pozzolona Portland Cement (PPC).

The continuous check on the quality aspects are being closely monitored by adopting

33

most sophisticated and advanced technologies at the laboratories of the factories, which

ultimately takes care of the ISO norms.

FUTURE OUTLOOK OF THE COMPANY: Further, as The Government of India has given highest priority for the infrastructure

sector with a plan to lay National Highways throughout the country with an estimated

cost of Rs.10,000 crores in the next five years, development of shipping yards, air ports,

provision of the housing to the teeming millions of the country and with the GDP

growth of 7-8% p.a, the demand for the Cement will boost up within next five years. It

is estimated that the total expected demand is about 180 Million M.T by 2008-2009

when the total production of cement is expected to be only around 170 Million M.T

leaving a gap of about 10 million tones between demand and supply.

With further liberalization of the economy in pipe line by the Union Government of

India in areas of industrial growth, agricultural development and consequent increase in

per capita income of the people in India it is indeed necessary to meet the competitive

challenges in the market, Since the rated capacity of the cement plants in India are

equally growing.

34

MAIN BODY

35

INDIAN CEMENT INDUSTRY PROFILE

Cement Industry in India is on a roll at the moment. Driven by a booming real estate

sector, global demand and increased activity in infrastructure development such as state

and national highways, the cement industry has witnessed tremendous growth.

Production capacity has gone up and top cement companies of the world are vying to

enter the Indian market, thereby sparking off a spate of mergers and acquisitions. Indian

cement industry is currently ranked second in the world.

The origins of Indian cement industry can be traced back to 1914 when the first unit

was set-up at Porbandar with a capacity of 1000 tonnes. Today cement industry

comprises of 125 large cement plants and more than 300 mini cement plants. The

Cement Corporation of India, which is a Central Public Sector Undertaking, has 10

units. There are 10 large cement plants owned by various State Governments. Cement

industry in India has also made tremendous strides in technological upgradation and

assimilation of latest technology. Presently, 93 per cent of the total capacity in the

industry is based on modern and environment-friendly dry process technology. The

induction of advanced technology has helped the industry immensely to conserve

energy and fuel and to save materials substantially. Indian cement industry has also

acquired technical capability to produce different types of cement like Ordinary

Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace

Slag Cement (PBFS), Oil Well Cement, Rapid Hardening Portland Cement, Sulphate

Resisting Portland Cement, White Cement etc. Some of the major clusters of cement

industry in India are: Satna (Madhya Pradesh), Chandrapur (Maharashtra), Gulbarga

(Karnataka), Yerranguntla (Andhra Pradesh), Nalgonda (Andhra Pradesh), Bilaspur

(Chattisgarh), and Chandoria (Rajasthan). .

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

36

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 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 Italcementi 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 and Mysore cements in

Karnatraka, CRH has staked 50% share in MHIL. Similarly many acquisitions are

likely take place in India which will help cut the competitive environment and stable the

price situation. .

Issues concerning Cement Industry

• High Transportation Cost is affecting the competitiveness of the cement industry.

Freight accounts for 17% of the production cost. Road is the preferred mode for

transportation for distances less than 250km. However, industry is heavily

dependant on roads for longer distances too as the railway infrastructure is not

adequate.

• Cement industry is highly capital intensive industry and nearly 55-60% of the

inputs are controlled by the government.

• There is regional imbalance in the distribution of cement industry, as Limestone

availability is limited to certain pockets I the country has led to uneven capacity

additions.

37

• Coal availability and quality is also affecting the production.

Outlook

Outlook for the cement industry looks quite bright. Given the sustained growth in the

real estate sector, the government's emphasis on infrastructure and increased global

demand, it looks as if the juggernaut of cement industry would continue to roll on the

path of growth.

We expect an increase incapacity additions of 11 mn tonnes by 1Q FY09E, assuming

demand growth of 10% p.a. continues, considering the time element and lower

utilization levels. With the regional analysis of the demand supply mismatch,

companies having huge market share in the northern region would face maximum

impact, as the region would have surplus of 4.9 mn tonnes (45% of total surplus) in

FY09E. However, regional players in South (India Cement and Madras Cements) would

not have a sharp correction as compared to the northern players, as surplus situation is

not seen till FY10E. We expect a mixed bag, seeing both sides of the coin for pan India

players.

This surplus situation is driven by addition of 96.6 mn tonnes of cement capacities

between FY07-FY10E. The surplus situation would not change even if we presume

higher growth rate of 12% p.a. versus our assumption of 10% p.a. growth over the next

two years, though the surplus may come down to 2 mn tonnes from 11 mn tonnes in

FY09E.

We feel that the current status enjoyed by the cement manufacturers, due to the demand

supply mismatch, will not last long. The surplus would lead to price correction

impacting the profits of the companies. We will be shortly introducing FY09E earnings

estimates and we expect cement realizations to decline by 5-8% YoY in FY09E

depending on the region due to over supply, which would have a negative impact on the

38

earnings. Profits for the companies would fall by 15% to 20% YoY in FY09E for pan

India players like Grasim, UltraTech, ACC and Ambuja Cements.Considering this

reversal in the cement cycle, the companies will not command the premium valuations

that they did during the uptrend, resulting in the de-rating.

Highlights

Adding approximately 96.6 mn tonnes by FY10E: After meeting the machinery

suppliers and collating the data of the announced capacities by the cement producing

companies, we expect a total of 96.6 mn tonnes of new capacities to be added by

FY10E.This would also include the additional capacities through debottlenecking and

exclude the dead capacities. At present the total capacity excluding the dead capacity is

around 160.2 mn tonnes in FY06. Currently KHD Humboltd Wedag (cement machinery

supplier) is working on 14.5 mn tonnes new kiln capacities. They mentioned that

currently their order book is completely full till FY09E.

Overall Demand Supply Scenario (m n tones)

Higher demand may not change the surplus situation in FY09E:

Demand has remained quite strong and grown by 10% YoY for the period April-

January 2007. We expect demand to continue to grow at 10% YoY in FY08E, which

2003 2004 2005 2006 2007 2008 2009 2010

Capacity 141 144 151 160 172 200 237 257

Growth % 2.4 5.0 6.0 7.2 16.5 18.4 8.4

Production 111 118 128 142 152 169 197 221

Growth % 5.5 8.6 11.2 7.4 11.0 16.6 12.4

Capacity Utilization (%) 79 82 84 89 89 84 83 86

Domestic Demand 108 114 123 136 150 165 181 199

Growth % 8.7 5.8 8.1 10.1 10.5 10.0 10.0 10.0

Cement Exports 3.5 3.4 4.1 6.0 5.5 5.0 4.5 4.0

% of Production 3.1 2.9 3.2 4.2 3.6 3.0 2.3 1.8

39

would translate in a deficit of 0.80 mn tonne which would drive the prices. Being

optimistic with the increasing thrust on infrastructure development and assuming

demand grows at 12% for FY08E, we see a huge gap in demand-supply with a deficit of

3 mn tonnes in FY08E. But, if the growth is lowered to 8%, than the surplus is 2.92 mn

tonnes. Thus, depending on the demand growth, the outlook for prices is expected to

change, however this is likely only till FY08E. In FY09E, with huge capacity addition,

even a stronger growth in demand would not help beat the surplus as huge as 12 mn

tonnes. All this growth plans and demand situation are dependent on the Government

policies. To suffice this aspect recently government of India has withdrawn the export

policies to meet the challenges of demand.

Threat of imports minuscule: Post the announcement of the import duty cut of 12.5%

there are threats from imports. But for imports to be feasible, proper logistics (ports

facility) is needed, which India lacks. Also cement being a very bulky and perishable

commodity requires proper warehousing facility, as the shelf life is not more than 45

days. The Chinese producers prefer to dump in other markets like the Middle East

where demand is much higher, as the quant ity exported is huge. Moreover the landed

cost of cement even at zero import duty works out to be Rs250 per 50 kg bag, which is

much higher than the average domestic prices of Rs.240.00 per bag.

40

Domsetic prices lower than than importsImport Duty at Zero % Cement from Indonesia 45 Freight cost from 27 Total cost (CIF) US$/tonne 72 Exchange rate (Rs/US$) 44.0 Total cost (CIF) 3,168 Handling cost 300 Value for customs duty 3,468 Import duty (12.5%) 0 Assessable value 3,468 Landed cost 3,468 Countervailing duty (for 408 Value for sales tax 3,876 Value including sales tax of 4,361 Loading and unloading 250 Freight 300 Dealer margin 60 Total selling price 4,971 Total selling price 249

No threat from exports flowing back: According to machinery

suppliers, exports contributed around 4.2% of the overall production

in FY06. And with the demand growing in double digit of around 10%

CAGR for FY06-10E these would be easily consumed in the domestic

market. Moreover, the suppliers added that even after huge

capacities coming on stream in the Middle East by December 2007,

the rising demand in the Middle East markets would surpass the

incremental supply. Thus there will be no major threat of exports

flowing back in the domestic market.

■ Consolidation to help the industry: The cement sector has been

witnessing a lot of consolidation and foreign entrants over the past

few years (see Exhibit 11). Lafarge was the first MNC to enter the

Indian market. It acquired companies like Tisco Cement and Raymond

Woollen in 1999-2000, followed by Italcementi, Holc im and

41

Heidelberg. This would help large players to cut competition from

small regional players. Its aggressive acquisition strategy has made

Holcim the largest MNC player in the cement sector. Currently Holcim

has a total of 34 mn tonnes of capacity through GACL, ACC and ACEL.

Heidelberg entered India by acquiring Indo Rama's capacity of 1 MT

and has now acquired 2.1 MT capacities of Mysore Cements and CRH 50 %

acquisition of MHIL.

■ Cement prices frozen at current levels post budget: Cement prices

have risen by 27% from January 2006 till January 2007. Currently

national average prices are at Rs.211 per 50 kg bag. Prices remained

firm during monsoons and currently prices are stable in all regions

due to concerns from the government with respect to rising cement

prices. In the Union Budget 2007-2008, differential excise duty on

cement has been introduced due to which a cap of Rs190 per 50 kg

bag is imposed on the prices. Although the debate still continues on

how these will be tracked as the prices vary from plant to plant

depending on the distance travelled and also accounting for the

dealer margins.

42

ADDITIONAL CAPACITIES COMING IN YEAR OF 2008-2010

Companies Month Additional Capacity (Mn

.tonnes) 2008-2009

Orient Paper (AP) Apr-08 0.4Jaypee Cement (UP Restart) Apr-08 1.0Gujarat Ambuja Cem (Gujarat) Apr-08 0.5Madras Cements (TN) Apr-08 1.8Grasim, Kotputli (Raj) Apr-08 4.0Jaypee Cement (Sidhi, MP) Apr-08 1.5Shree Cement (Raj) Apr-08 1.5Burnpur Cement (Jharkhand) Apr-08 1.0Grasim, Shambhupura (Raj) Jul-08 4.0Jaypee (Gujarat Anjan) Jul-08 1.2UltraTech (AP) Sep -08 4.0OCL (Orissa) Sep-08 1.0Lafarge (Sonadih, Raipur, Chattisgarh)

Nov-08 2.2

Sanghi, Jadhava (Gujarat) Dec-08 5.0Chettinad Cem (TN) Dec-08 2.0Guj Ambuja (ACEL, Chattisgarh) Dec-08 2.3ACC (Bargadh, Orissa) Dec-08 1.2Murli Agro Products (Chandrapur, Maharastra

Jan-08 2.1

Total for FY09 36.702010

My Home Industries Ltd. Apr-09 1ACC (Wadi, Karn) Apr-09 3.0Zuari (Tamil Nadu) Apr-09 2.6Grasim (Orissa) Apr-09 3.5Penna Cement (AP) Apr-09 1.6JK Cement Apr-09 3.2Guj Ambuja (HP) Apr-09 3.0Kesoram (Andhra Pradesh) Jul-09 1.5Lafarge (east) Jul-09 1.5Total for FY10 20.9

43

SOUTH REGION DESPATCHES FROM APRIL 2007 TO MAR 2008

ANDRA PRADESH CEMENT DOMESTIC EXPORT SL.NO. NAME OF THE COMPANY

DESP(MT) DESP(MT) DESP(MT)1 KESORAM CEMENT 1199950 1199950 - 2 ORIENT CEMENT 1487470 1487470 - 3 ZUARI CEMENT 1960790 1960790 - 4 TANDUR 610000 610000 - 5 VIZAG (G) 372590 372590 - 6 NADIKUDE DURGA CMT 740210 740210 - 7 CHILMAKUR WORKS 1310830 1310830 - 8 VISAKA CEMENT 1147390 1147390 - 9 YERRAGUNTLA 580150 580150 -

10 RAASI CEMENT 2504030 2504030 - 11 SRI VISHNU CEMENT 1320960 1320960 - 12 JAYANTIPURAM 1420760 1420760 - 13 L & T A.P. 2144740 2144740 - 14 K.C.P.LTD 733940 733940 - 15 PANYAM CEMENTS 470750 470750 - 16 PRIYADARSHINI 1071940 1071940 - 17 PENNA IND LTD 1668080 1668080 - 18 PENNA GANESHPAHAD 1140540 1140540 - 19 MY HOME IND LTD. 2491800 2491800 - 20 RAIN IND LTD. 545780 545780 - TOTAL ANDHRA PRADESH 24922700 24922700 -

TAMIL NADU 21 MADUKKARAI 878160 878160 - 22 GRASIM SOUTH 1348320 1348320 - 23 SANKARNAGAR 1802210 1798890 3320 24 SANKARIDURG 606640 606640 - 25 DALAVOI 1266860 1266860 - 26 ALANGULAM 141660 141660 - 27 ARIYALUR 531320 531320 - 28 RAMASAMYARAJA NAGAR 1215920 1215920 - 29 ALATHIYUR WORKS 2953340 2953340 - 30 CHETTD.KARUR & KARIKK 2908550 2908550 - 31 DALMIA CEMENT 3282700 3277540 5160 32 L & T ARCW (G) 970370 970370 - TOTAL TAMIL NADU 17906050 17906050 8480.00

KARNATAKA 33 WADI 1592400 1592400 - 34 VASAVDATTA CEMENT 3280910 3280910 - 35 RAJASHREE MALKHED 2948550 2948550 - 36 MYSORE CEMENT 315670 315670 - 37 WADI NEW 2610470 2610470 - TOTAL KARNATAKA 10748000 10748000 -

KERALA 38 MALABAR CEMENTS 442980 442980 - 39 MALABAR CEMENTS (G) 124660 124660 - TOTAL KERALA 567640 567640 - TOTAL SOUTH 54144390 54144390 8480.00

44

Cement firms may face the shortage of Lime stone India’s growth story has serious problems lurking behind. With the onset of

construction boom in the country, demand for cement is going up day by day.

With the rise in demand for cement, the domestic cement industry is set to face serious

problems in the next five years on the back of fast-depleting limestone reserves, an

important mineral ingredient for the industry.

The amount of limestone reserves needed for operating the existing installed capacity of

around 180 million tonnes is estimated to be around 13,365 million tonnes. However,

an additional 8,316 million tonnes of limestone reserves will be required to cater to the

additional 118 million tonnes of cement capacity during the eleventh Plan.

The situation turns more intense, given the fact that the proven equivalent reserves are

estimated to be 44,632 million tonnes. This means after 2012 only 22,505 million

tonnes of reserves will be available and they are inadequate for the future cement

capacity additions beyond the eleventh Plan period.

Moreover, sizeable quantities of limestone reserves are located in inaccessible areas like

terrains, reserved forests, bio-zones and coastal regulatory zones. The reserves available

for the cement industry are estimated to be less than 50 per cent of the gross cement-

grade limestone reserves. .

In March 2006, the reserves of cement-grade limestone in the country were estimated at

97,430 million tonnes. Of this, only 22,476 million tonnes (23 per cent) are of the

proven category, while the rest are of the probable and the possible categories.

These reserves would suffice only for the lifecycle cement plants that would be existing

at the end of the eleventh Plan period. .

Around 1.5 tonnes of limestone is required to make a tonne of cement. Fly ash (by-

product at thermal power plants) and slag (by-product at steel plants) are mixed to an

extent of 35-40 per cent in making blended cement.

Deposits are there, but the proven category of limestone needs to be improved.

Blending is an answer as it reduces the ratio of limestone in making cement.

45

However, cement cannot be made without limestone. As demand goes up, requirement

for limestone will increase and it will turn out to be a concern after five years.

According to industry analysts, cement makers will go for higher blending. Already,

some of the existing players are producing 80-85 per cent of blended cement. On an

average, the country’s 170 million tonnes cement industry produced around 55 per cent

of blended cement in 2006-07.Setting cement plants near thermal and steel plants will

help the companies improve the blending ratio.The recent joint venture between Jaypee

Cement and Steel Authority of India (SAIL) for setting up cement facilities close to

steel plants for the availability of slag is becoming a trend among cement makers.in

view of making use of the slag and pozzilona properties in cement MHIL has already

installed a grining unit at Vizag with capacity of 1.00 million tonnes.

Analysts further said the cement companies would also have to use lower grades of

limestone reserves to combat the issue of depleting reserves.

46

PRODUCT PROFILE :

MANIFACTURING PROCESS : In the most general sense, cement is produced by heating sources of lime, iron, silica,

and alumina to clinkering temperature (2500-2800°F [1400-1550°C]) in a rotating kiln,

then grinding the clinker to a specified fineness. The heating that occurs in the kiln

transforms the raw materials into new chemical arrangements. Therefore, the chemical

composition of the cement is defined by the mass percentages and composition of the

raw sources of lime, iron, silica, and alumina as well as the temperature and duration of

heating. It is this variation in raw materials source and the plant-specific characteristics,

as well as the finishing processes (ie: grinding and possible blending with

supplementary cementing materials), that define the cement type produced.

Cement production is one of the world’s most energy intensive industries. Key

production stages can be summarized as:

Raw materials

These are generally combinations of limestone, shells or chalk, and shale, clay, sand or

iron ore, usually mined from a quarry close to the plant where they undergo reduction

using primary and secondary crushers. When the reduced materials reach the cement

plant they are proportioned to create a cement of specific chemical composition. Much

work is being done on the use of alternative raw materials – often the by-products of

other industrial processes. These can minimize the effects of quarrying, reduce the

impact of the cement plant on the local environment and enable the cement industry to

become a major player in materials recycling.

There are two basic methods used in Portland cement production – wet and dry. In the

dry process dry materials are proportioned, ground to a powder, blended and fed into

47

the kiln dry. The wet process involves adding water to the proportioned raw materials

and completing the grinding and blending operations in slurry form.

Pre-heater

To conserve energy, most modern cement plants pre-heat raw materials before they

enter the kiln, using the hot exhaust gases from the kiln itself.

Kiln

The mixture of raw materials is fed into the upper end of a rotating, cylindrical kiln,

which achieves temperatures in excess of 1000°C. It passes through at a rate controlled

by the slope and rotational speed of the kiln. Chemical reaction inside the kiln leads to

the fusion of the raw materials to produce clinker. Traditionally kiln fuels have been

powdered coal or natural gas, but increasingly alternative fuels are being used. These

include materials such as scrap tyres, processed sewage sludge and packaging waste.

Cooling/finish grinding

Clinker is discharged from the lower end of the kiln and transferred to various types of

coolers. Cooled clinker is combined with gypsum and ground to a fine powder in a

ballmill to produce the final grade cement.

Where is on-line particle sizing used?

Using real-time on-line particle size analysis in the finish mill to monitor the cement

final grade translates directly into energy savings by reducing overgrinding and. It

allows optimal use of the plant and generates sustainable improvements in product

quality and consistency.

48

Technological Trends in Cement Industry - Energy and Environmental impact

Indian cement industry has come a long way in technological upgradation, production

and quality. India today, is the second largest cement producing country in the world

with an installed capacity of 119 million metric tons per annum. The cement industry in

India has a distinction of operating very large to very small capacity and very modern to

49

very old technology plants. Some of the modern plants can be compared to the best

plants in the world in terms of quality, variety of cements produced and energy

efficiency. Indian cement industry has been very proactive in adopting various

technological advancements taking place all over the world. This was particularly

triggered by the partial decontrol of cement industry in 1982 followed by full decontrol

in 1989 giving the resultant free market competition an opportunity for growth in

production and productivity.

The share of energy inefficient wet process plants had slowly decreased from 94.4% in

1960 to 61.6% in 1980. Thereafter as a result of quantum jump in production capacities

through installation of modern dry process plants as well as conversion of some of the

wet process plants, the share of wet process has reduced to less than 5% today.

During the last two decades (80's and 90's), major technological advancements took

place in design of cement plant equipment/systems basically in the following major

areas

a) pre-calcination

b) high pressure grinding

c) automation in process control

d) high efficiency particle separation

e) clinker cooling

These resulted in sea change developments globally and the Indian cement industry

followed the international trend. The special features noticeable were:

i) standard size of the new plants neared a million tonnes per annum

ii) large areas of limestone even in remote areas exploited by cluster of plants

iii) active search made for the latest type of technology and equipment to continually

bring down the energy costs

iv) large number of old wet process plants closed down or converted into dry process on

50

account of high cost of operation

v) introduction of multiple grades of cement on strength parameters surpassing the

Bureau of Indian Standards (BIS) specifications

vi) many plants taking to automation, computer controlled systems and man power

reduction

vii) Improvement in packaging with the use of HDPE/PP/paper bags in place of

conventional jute bags

viii) shift in the marketing strategy with specific emphasis on quality associated with

brand

The industry never looked back. The financial investments were justified on energy

conservation, quality enhancement and environmental consideration.

Energy Conservation

A typical modern cement plant has heat consumption of 680-720 kcal/kg clinker and

power consumption of 70 - 85 Kwh/tonne of (OPC-43) cement.

A few recent technologies that helped Indian cement industry to consolidate in

sustained energy savings are broadly discussed below.

Raw Material Grinding

Raw material grinding is a critical mechanical operation predominantly determining the

sizing of equipment in a cement plant. Raw grinding process consumes about 20% of

the total energy consumed in the plant. Various grinding systems used in Indian cement

industry for raw material grinding are:

a) Ball mills

b) Vertical Roller Mills (VRM)

c) Ball mills with high pressure grinding rolls.

d) High pressure grinding rolls

e) Horizontal roller mills

51

Selection of type of grinding mill depends on the raw material's several physical

characteristics most important amongst which are hardness of the material and moisture

content. Availability of the major grinding equipment in appropriate capacity decides

complexity or otherwise of layout, auxiliary equipment sizing etc. which ultimately

decide plant's pyro-processing capacity.

Vertical roller mills have been widely accepted for combined grinding and drying of

moist raw materials in view of their excellent drying capacity and low energy

consumption. Although the principle of the vertical roller mill did not change over the

years, many improvements have been made in design of mill and other equipment in the

grinding circuit resulting in less energy consumption and improved reliability.

Introduction of external re-circulation of material, adjustable louvre ring and

modification of mill body to improve the air and material trajectories are examples of

such design changes.

While a number of plants are still using ball mills, many have installed pre-grinders like

roller press to improve energy efficiency. Here, the extent to which the roller press is

loaded determines the efficiency of the grinding circuit. Use of roller press alone as a

finish grinding equipment to give the final product is also a new development.

Horizontal roller mill is yet another improvement in grinding systems incorporating the

advantages of vertical roller mill and roller press. An additional advantage with the

horizontal roller mill is its low space requirement due its compact size. A compact

horizontal roller mill with an in-built separator is now in the process of development.

This kind of a mill would eliminate many small conveyors carrying material to

separator and from separator.

The efficiency of the grinding circuit and power consumption of the mill fan greatly

depend on the performance of the classifier. Perhaps classifier is the part that has

52

undergone maximum changes and has been the target part for efficiency improvement.

A variety of high efficiency classifiers are employed in grinding circuits.

Apart from the main equipment viz., mill, classifier and fan the efforts have been on

improving the performance of internals e.g. table liners in case of vertical roller mills

and classifying liners in case of ball mills. Use of mechanical conveying systems like

bucket elevators is becoming more common in place of pneumatic conveying giving

substantial savings in energy.

Pyro-processing

Pyro-processing section in a cement plant comprises preheater, rotary kiln and clinker

cooler. Pyro-processing section is considered to be the heart of a cement plant as actual

cement clinker formation takes place in kiln. The size of a cement plant is determined

based on pyro-processing section and the sizes of all other equipment are determined to

match pyro-processing. The shape of cement plants changed with the advent of

preheater in 70's. With the introduction of pre-calciners in 80's, the size of cement plant

had considerably increased. A 600 tpd considered to be economic size of kiln earlier

went up to 3300 tpd in 80's and further to 7000 tpd currently. A variety of preheaters

with different designs of precalciners have come into existence.

Preheaters can be classified into the following 5 categories irrespective of the

manufacturer.

a) preheater without calciner

b) inline calciner with air passing through the kiln

c) inline calciner with external tertiary air duct

d) separate line calciner

e) separate line calciner with inline calciner

53

With the above five modes of operation, different equipment manufacturers came out

with different designs normally designated in the manufacturing company's name.

Cyclones are basic units in a preheater system. Pressure drop and change of temperature

of gas across each stage determines the efficiency of cyclones. Introduction of Low

Pressure drop (LP) cyclones has brought the pressure drop across each stage to around

50 mm WG from around 150 mm WG in conventional cyclones. This has resulted in

more and more plants adopting 5 or 6 stages of preheater. A typical 6 stage preheater

with LP cyclones will have a preheater exhaust gas temperature of around 2500C and

draught of around 500 mm WG. This in turn lead to decrease in preheater fan power

consumption. The reduced temperatures at preheater exhaust contribute to

environmental improvement.

The burners also play an important role in determining the thermal efficiency of the

pyro processing system. There has been a continuous effort on operating the burners

with the least possible primary air. The advent of multi-channel burners taking only 5%

primary air are being installed in many plants giving a direct thermal energy saving of

15 kcal/kg clinker. Apart from saving thermal energy, the modern burners also enable

easy flame control.

Clinker cooler is a critical equipment and the size of clinker cooler some times becomes

a bottle-neck for increasing production from rotary kiln. The function of a clinker

cooler in a cement plant is dual i.e. reducing the temperature of the clinker to a level

that is acceptable for further transport and grinding and recover energy from the

sensible heat of the hot clinker by heating the cooling air. Thus thermal efficiency of

clinker cooler is very important in deciding about the type of cooler. Mainly two types

of clinker coolers are used at present in cement industry. They are

a) Grate cooler

b) Planetary cooler

54

In majority of the existing plants, conventional grate coolers are used. These coolers

have lower recuperation efficiency, occupy more space and need more cooling air.

Inspite of these draw backs, grate coolers are more widely used than planetary coolers

primarily due to comparatively higher thermal efficiency. There have been a number of

design improvements in grate coolers in recent times, mainly on grate plate to improve

the efficiencies simultaneously reducing the cooling air intake. The specific load of

clinker on grate plate can be as high as 50 tpd/m2. These modern coolers are compact in

size. High efficiency coolers operate on the principle of Horizontal aeration. More and

more cement plants with conventional grate coolers are retrofitting the coolers with

high efficiency coolers.

By installing high efficiency coolers, it is possible to reduce the cooling air to about 1.8

Nm3/kg clinker from conventional value of more than 3 Nm3/kg clinker. This has

resulted in low electrical energy consumption in cooling air fans and also in cooler ID

fan. Thus high efficiency coolers give rise to both thermal and electrical energy

conservation.

The inlet and outlet seals of kiln are important, as they help to reduce the air infiltration

into the system. With the improved kiln seals available today, not only heat loss is

reduced but also the environment around kiln has become almost dust free. A

pneumatic seal for kiln inlet and spring loaded mechanical seal for kiln outlet are

considered to be very effective in modern kilns.

Cement Grinding

Cement grinding is another energy intensive operation in cement manufacture Cement

grinding consumes around 25-30% of the total energy consumed in a cement plant.

Typical cement grinding systems in use are

a) open circuit mills

b) closed circuit mills

55

c) roller press with open circuit ball mill

d) roller press with closed circuit ball mill.

e) roller press in finished mode

f) vertical roller mill

g) horizontal roller mill

Ball mills have traditionally been in use for many years in open circuit and closed

circuit mode. In recent past, roll press as pre grinders have been introduced. This has

given a substantial benefit in energy consumption. Use of vertical roller mill for cement

grinding is very recent and the performance results are reported to be encouraging. A

typical modern cement grinding circuit will have a roll press as pre grinder with ball

mill. Horizontal roller mills combine the advantages of roll press and vertical roller

mill. These mills are reported to be highly energy efficient. Horizontal roller mills are

best suited for slag grinding.

Separator is crucial equipment in cement mill section as it has direct bearing on

production and quality of cement and energy consumption. High efficiency separators

are used in modern cement plants and old plants are also going for a retrofit.

Auxiliary items like mill liners and diaphragms have been improved continuously and

these items in different designs are available contributing to energy reduction in cement

grinding.

Quality Consideration

In an environment of growing competition witnessed in the post decontrol era, one of

the major development has been in the introduction of higher grades of cement. 43

Grade and 53 Grades of normal portland cement have now conquered the market. The 3

day, 7 day, 28 day strength parameters obtained are far higher than the BIS' specified

standards for these grades of cement. In fact ISI marking has now become redundant

from consumers' point of view. 33 Grade cement has, however, been a casualty. It has

56

been driven out of market by the easy availability of higher grades. The war of grades

and competition among brands have also affected considerably the market for

pozzolana and slag cements, which, in fact have some special attributes far superior to

even higher grades of normal portland cement.

Today it is the publicity on strength properties that make the higher grades sell.

However, realisation is growing fast amongst the consumers at large, that the properties

of durability are of greater importance than the 3 day, 7 day, 28 day strengths.

Moreover, strengths specified serve only the limited purpose of design and use of form

and shuttering work with no realistic contribution on long term strength and durability

of construction. In fact, by research and practice, it has been found that high early

strength cements need not necessarily perform well in durability characteristics. On the

contrary, the high-grade cements based on strengths achieved with higher C3S contents

are more likely to yield poor quality and less durable concrete than the normal 33 grade

portland cements.

Therefore concrete manufacturers and users would in the near future ask for

performance standards of cement in preference to the product specifications. Sooner,

the cement manufacturers stop this race on higher-grade cements and attend the more

important requirement of developing "durable" cement, it would take them to better

price realisations in future.

Environmental and ecological consideration

Almost all cement plants now a days are equipped with high efficiency dust collection

systems like Electro Static Precipitators. It has been realised that house keeping,

running the plant in environmentally friendly way has direct bearing on the profitability

and image of the company. It also improves the employee morale.

A very important development in cement technology is in the field of rational utilization

of cement. Most of the developments related to the rational utilization of cement

57

directly or indirectly have positive impact on environment and contribute considerably

for maintaining ecological balance. Use of blended cement, utilization of waste heat in

cement plant to generate electrical energy and use of alternate fuels are a few examples

explaining the concern of cement industry not only towards protection of environment

but also ecological balancing.

Waste Heat Recovery

There have been many attempts to recover the heat lost in exhaust gas streams of

cement plants. With the use of 6 stage preheaters, high efficiency coolers and better

refractory management practices, the quantity of heat lost from the cement plants has

come down significantly. Traditional methods of recovering heat from exhaust streams,

which have not been very efficient, have also undergone changes and efforts are

directed towards increasing the efficiencies. Now technologies are available to recover

the heat from exhaust gas streams from preheater and clinker cooler and generate

electrical energy. More cement plants in India are expected to adopt such waste heat

recovery systems mainly to counteract the power shortage. As the electrical power

generated from waste heat does not require combustion of any fossil fuel, such an

attempt would enable the cement plant to significantly contribute to the movement of

reduction in green house gases.

Use of alternate fuels

With increase in scarcity of good quality coal and power at an attractive price, the

Indian cement industry is committed to reduce the energy consumption levels and the

trend of energy levels shows a continuous reduction. Inspite of this favorable trend of

energy consumption, the percentage of energy cost as total production cost is increasing

year after year. This is attributed mainly to the raising prices of coal and power. With

this background, in line with developed countries, Indian cement plants also started

looking at use of cheap alternate fuels like lignite, pet coke, rice husk, groundnut shells

58

etc. In some European cement plants, the cost of fuel is reported to be zero. This is

because, cement kilns use 100% waste fuels operating some times as incinerators. In

fact, the cement plants are paid for burning the municipal and industrial wastes in such

places. Indian cement industry also should aim ultimately to reach such a position of

achieving zero cost of fuel. However, this requires development of infrastructure at

cement plant site as well as waste generation and collection sites.

The technological advancements in design of cement manufacturing equipment and

modern operating principles primarily aimed at productivity improvement and reduced

energy consumption. Reduction in thermal energy consumption reduces directly the

amount of coal fired in the plant. To that extent, the carbon di oxide content from

exhaust gas reduces. Installation of very efficient dust collection systems like ESPs and

elimination of transfer points in material conveying circuits and adoption of modern

maintenance practices have helped cement plants to maintain a very clean environment

in and around the plant site.

RAW MATERIALS

Cement is usually used in mortar or concrete. Here it is mixed with inert material

(called aggregate), like sand and coarse rock. Portland cement consists of compounds

of lime mixed with oxides like silica, alumina and iron oxide. There are three major

raw materials for cement:

Limestone

Limestone is the main raw material and is the source of calcium carbonate. Calcium

carbonate is burnt to obtain calcium oxide (CaO). The other sources of calcium

59

carbonate are marl, chalk, seashell and coral reef. Limestone is the most abundant

source of CaO.

The other user industries for limestone are iron & steel, fertilizer and chemicals.

Cement is the biggest limestone user in India accounting for over 75-80% of

limestone produced in India. The composition of limestone used by the various

sectors varies. For cement, the CaO content of limestone should be a minimum of 44%.

Typically, 1.4-1.5 tonnes of limestone are required per tonne of clinker. Thus, for a 1

million tonne cement plant, assured availability of cement grade limestone reserves of

the order of 50-60 mt in the close vicinity is important.

Gypsum

Gypsum is used as a retarding agent. Ground clinker, on contact with water, tends to

set instantaneously because of the very fast reaction between tri-calcium alluminate

and water. In the presence of gypsum, the desired setting time can be achieved.

Gypsum is added to the extent of 5% during the clinker grinding stage. Gypsum is

naturally available in abundance in Rajasthan, Gujarat and Tamilnadu.

Granulated Blast Furnace Slag (GBFS)

The other raw materials that are also used in the manufacture of cement are blast furnace

slag (a waste product obtained from iron-smelting furnaces) and flyash (leftover ash

from a thermal power station). Limestone contains about 52% of lime and about 80%

of this lime is lost during ignition of the raw materials. Similarly, Clay contributes

about 57% silica of which about 25% is lost during ignition.

60

GBFS is obtained by granulation of slag obtained as a by-product during the manufacture

of steel. It is a complex calcium aluminum silicate and has latent hydraulic properties.

That is why it is used in the manufacture of portland blast furnace slag cement.

Maintenance And Stores Requirements

The two important items of stores and spares in the case of cement manufacture are

refractory material and grinding media. For grinding media, high chrome grinding

balls are normally used. In the case of refractory materials, companies go in for two

kinds of refractory bricks-high alumina and high chrome. Typically, the life of the

refractory material is 6-8 months (with the indigenously made high-alumina bricks),

after which the kiln has to be stopped and the affected sections relined, a process,

which takes 3-4 days. Kiln relining is normally made to coincide with the normal

planned shutdown. Some companies are also experimenting with imported high-

chrome bricks, which provide for a longer uninterrupted operational life of 18-24

months. In practice, this can extend the availability of calendar hours and thereby

enhance the actual capacity of the plant.

ENERGY AND TRANSPORT REQUIREMENTS

The cement industry is dependent on three major infrastructural sectors of the

economy: coal, power and transport. The inputs from these three sectors account for

roughly 50% of the cost of cement. Both the availability and the cost of these inputs

have a vital bearing on the fortunes of the cement players. All these sectors are

largely in the State sector, and, historically cement companies have had virtually no

control on the cost or availability of these inputs. Hence, the industry response has

61

largely been in the form of achieving efficiency gains and finding alternatives

(captive power, use of waterways).

One additional external influencer of the cement industry performance is the taxes and

levies imposed by the Central and State Governments. These together account for

around 30% of the selling price of cement in the Indian context.

62

Coal

Coal is an important input in cement manufacture and accounts for 15-20% of the

total cost. Coal serves a dual role in cement manufacture. Firstly, the heat value in

coal provides the thermal energy required for the operation of the kiln. Secondly, the

mineral content in coal (basically, silica content) acts as a constituent in clinker. For

every tonne of clinker, around 200-220 kg of coal is consumed. Coal consumption

by cement plants has increased from 19 mt in FY2000 to around 33 mt in FY2005.

Cement accounts for around 4.5% of India's coal demand. Consumption of coal for

production of cement has not increased proportionately with cement production

because of the switch to the dry process, efficiency improvements in cement kilns

and the increased use of fly ash produced in power plants and granulated slag

produced in blast furnaces of steel plants in the production of cement.

In India, overall coal distribution was statutorily governed by the Colliery Control

Order of 1945. Subsequently, this order has been amended and the new Colliery

Control Order 2000 has been notified according to which the price and distribution

of all grades of coal have been deregulated with effect from 1.1.2000. To ensure

smooth and co-ordinated supplies of coal to all consumers, the Government and the

coal companies have adopted a system of linking of supply sources with consuming

units and their requirement. All consumers are broadly classified into two different

categories viz. core sector and non-core sector. Cement comes under the core sector.

Each consumer is given a linkage (allocation) of quantity on an appropriate field. The

linkages to cement plants and power utilities are decided by the Standing Linkage

Committee (SLC). Key members of the SLC include representatives from the

Ministry of Coal, the Ministry of Railways, the Ministry of Power/Industry, the

Planning Commission, the coal companies and the Central Fuel Research Institute

(CFRI).

The quantity, and the coalfields from where the coal is to be supplied to a

particular cement plant, is decided by the SLC even before the cement plant is

63

commissioned. The actual movement programme is, however, drawn up by the SLC

every quarter indicating the quantities to be moved, the mode of transport and the

coal Fields/ coal company with which the cement company is to be linked.

To meet the requirement of Indian consumers, there are seven grades of coal

available from Indian collieries. The classification is done based on the Useful

Heat Value content of coal, as mentioned below:

Classification of Indian Coal

Useful Heat Value (Kcal/kg)

A Over 6200 B 5600-6200

C 4940-5600

D 4200-4940

E 3360-4200

F 2400-3360

G 1300-2400

Cement plants are allocated grades D, E and F. Given that the bulk of the output is in

these grades, most users, including the power sector, consume the same low grade

coal. Grades notwithstanding, the quality of Indian coal is quite poor, and has

deteriorated over the years. In addition to the deteriorating quality of Indian coal,

coal prices have also increased in recent years. These rises in the price of domestic

coal grades along with the rise in rail and road tariffs are expected to force the

Indian cement industry to look at alternative sources of coal/energy in the future.

The shortage in domestic coal production coupled with the poor quality has

resulted in cement companies resorting to importing coal, or going in for open

market purchase of coal, or using alternative fuel such as lignite or pet coke.

Use of imported coal has become an essential feature of the Indian cement industry

and has shown a rising trend during the last few years.

64

Estimated Demand for Coal by Indian Cement Industry Mt

I Domestic Import

2000 2001 2002 2003 2004 2005

65

Power

Cement is a power intensive industry requiring on an average 110-120 units of

power per tonne of cement produced. Significantly power accounts for 15-20% of

the variable cost of cement manufacturing. Cement manufacturing consumes power

mainly for three purposes: raw meal grinding, kiln rotation and clinker grinding.

Each stage accounts for roughly one third of the total power consumption. A dry

process plant typically has an average connected load of 15 MW. Based on the

present installed capacity of 157 mtpa of cement, the total industry requirement is

roughly 2300 MW. This is just around 2% of India's total current power generating

capacity.

Over the years, the cement industry has consistently suffered from power cuts. In

fact, availability and quality of power have always been crucial issues for cement

companies. Further, price increases by State Electricity Boards (SEBs) have meant

that even their poor quality power comes at a high cost.

Rising power tariffs have reduced the diseconomies associated with self-generation

through Diesel Generating (DG) sets. Accordingly, to insulate themselves from

power cuts, cement units had initially installed captive DG sets as a standby.

However, with the increase in the frequency of power cuts and rising power tariffs,

many cement companies are meeting 60-100% of their power requirement through

captive facilities. The captive power generation capacity of cement plants is

presently estimated at around 1,800 MW. During FY2005, roughly 43% of the total

domestic cement production was undertaken using captive power as against only

21% in FY1995. Thus, the share of cement production using captive power has

only increased over the years.

66

Captive Power Generation by Cement Plants and Share of Captive Generation

to Total Requirement by Cement Plants FY

7,000

6,000

5,000

4,000

3,000

2,000

1,000 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Of the total captive generation capacity, DG sets account for around 65% while

the balance 35% is accounted for by thermal power plants. There is increasing

focus on setting up thermal power plants as against DG sets since operating

costs for the latter are lower. The industry initially opted for DG sets, which

typically have smaller capacity (4-6 MW against 15-20 MW for thermal sets).

This was because of the smaller size of the earlier plants, and moreover the DG

sets were meant for backup purposes only.

Transportation

Outward freight on cement is an important element in the operating cost of a

cement plant. It accounts for around one third of the total variable costs. Most of

the cement plants in India are located in and around the limestone clusters.

These clusters are distant from the collieries and the markets for cement.

Cement has an average lead of around 535 km. Thus, cement companies have

to rely on extensive transportation for moving coal from the coal pitheads to the

Generation (mn. Units) ■Share (%)

67

cement plants and for despatching cement from the plant to the markets. As both

coal and cement are of low value and bulky in nature, freight costs are

considerably high for cement plants.

Cement companies use both road and rail transport to transport cement and to

receive coal. Rail despatches amount for about 33% while roads carry the

balance 66%. The balance 1% is accounted by Sea transporation. The share of

road over rail has only gone up over the years. For coal transportation, the

dependence on rail network is still very high and accounts for around 70% of

coal movement.

Cement Despatches by Rail, Road and Sea

Mt

140 Rail IRoad Sea

2000 2001 2002 2003 2004 2005

68

Although rail transportation is more economical for distances beyond

250-300 km, cement companies have started preferring road transportation

even for longer distances because of several reasons. Rising railway traffic

coupled with insufficient investments by the railways for increased wagon

supplies and the fact that the cement industry is not an important customer

of the Railways (cement cargo accounts for just 7-8% of the total railway

freight) have resulted in a shortage of wagon supply to the cement industry.

The railways had launched the "Own Your Wagon" scheme-a scheme

where companies could buy wagons and lease it to the Railways and the

Railways would in turn operate these wagons and ensure their availability

to the owner. But the unfavourable terms and conditions of this scheme

prevented its successful commercialisation. The The Railways have also

increased their tariff on a regular basis (often higher than the increases in

the road sector), making them uneconomical vis-à-vis road tariffs even

for longer distances.

69

Chemical Composition :

Particulars

33 grade

(IS 269-89)

43 grade

(IS 8112-89)

53 grade (IS

11269-87)

Rapid Hadening

(IS 8041-90)

IRS-T-40-85

PPC IS 1489-76

Slag cement (IS-455-

89)

Physical Requirements :

1. Fineness (Cm2/gm)Min 2250 2250 2250 3250 3700 3000 2250

2.Setting time(Minutes)

Initial-Min 30 30 30 30 60 60 30

Final-Min 600 600 600 600 600 600 600

3.Soundness

Le Chatelier Expansion (MM)

Max 10 10 10 10 5 10 10

Auto Clave(%) Max 0.80 0.80 0.80 0.80 0.80 0.80 0.80

4.Compresive Strength (Kg/cm2)

Particulars

33 grade

(IS 269-89)

43 grade

(IS 8112-89)

53 grade (IS

11269-87)

Rapid Hadening

(IS 8041-90)

IRS-T-40-85

PPC IS 1489-76

Slag cement (IS-455-

89)

1 day - - - 160 - - -

3 days 160 230 270 275 - - 160

7 days 220 330 370 - 375 220 220

28 days 330 430 530 - - 330 -

5.Drying Shrinkage - - - - - 0.15 -

Chemical requirements :

(Kg/cm2)

1.Lime saturation factor(LSF)

0.66-1.02

0.66-1.02 0.8-1.02 0.6-1.22 0.8-1.02 - -

2.A/F Min factor(LSF) 0.66 0.66 0.66 0.66 0.66 - -

3.IR % 4 2 2 2 2 x+4

(100-x)/100

2.50

4.% Mgo 6 6 6 6 5 6 8

3.IR % 4 2 2 2 2 x+4

(100-x)/100

2.50

5.% So3 Max 2.5 and 3

2.5 and 3 2.5 and 3 2.75 3.5 3 3

6.% LOI Max 5 5 4 5 4 5 4

7.% LOI Max 5 5 4 5 4 5 4

Chloride content % 5 0.05 0.05 0.05 - - -

7. C3S % - - - - 45 min - -

8. C3A % - - - - 10 Max - - 9. Content of slag % - - - - - - 25-65%10.Puzzolonic mtl % - - - - - 10-25 -

70

What is Blended cement ?

Fly ash is a artificial pozzolanic material, which is a inorganic residue obtained

from the burning of pulverized coal. A finely divided Pozzolana form

compounds which have cementitious properties, when mixed with hydrated lime

and alkalies. As such, the generation/ consumption ratio of fly ash is very high

in India, hence every year a huge stock of fly ash is increasing. As it comes

under hazardous waste material, the disposal is also a major problem. But now a

days in the many field the fly ash is used either as a ingredient of raw material or

as a filler. The cement and concrete are the examples, where it is used as a

pozzolanic material. The fly ash should conform the parameters laid down in IS

3812 : 2003 Part I and II for its different usage.

Earlier , when IS 1489 :1969 for PPC was introduced in India , the addition of

fly ash was limited from 10 - 25 % only. From 1980 onwards there is

revolutionary change in cement technology and the production of high strength

giving clinker started. Based on the production of high strength clinker , Bureau

of Indian Standard revised its limit and was increased and now the limit of fly

ash addition in PPC is 15 - 35 %.

In India and other part of the world , the scientist are involved to increase the

addition of fly ash in PPC manufacturing, to make the environment more

cleaner. This is not only for "Waste to best" conversion but also for "ash to

cash", keeping environment friendly approaches for better to-morrow.

Keeping the clean and green environment in mind, this research and

development work was carried out in Quality Control Department of Cement

Manufacturing Company Limited Meghalaya India in the laboratory scale, to

know the impact of higher addition of fly ash beyond BIS limit, with respect to

clinker quality, fineness and Indian Specification IS 1489 :1991 for Portland

71

Pozzolana Cement. Presently OPC 43 Grade , OPC 53 Grade and PPC Part I (

Fly Ash based ) cements are being manufactured and marketed with "STAR"

Brand, which become the most popular and leading brand of cement in North -

East States of India within a year of commencing production. The Company is

also selling clinker to various small and mid sized customers for its premium

quality as low alkali, low C3A and low Chloride are the requirement for mass

construction , which are easily met by clinker / cement manufactured in CMCL

The cement grinding in Cement Manufacturing Company Limited, started in

February 2005 . From June 2005 production of Portland Pozzolana Cement ( Fly

ash based ) started. Initially the addition of fly ash was kept lower side and than

gradually increased up to 33 % without compromising on any parameter During

the process of more addition of fly ash we have conducted trial in laboratory for

various parameters of cement and fly ash both. We are taking fly ash from

Kahalgaon. The details of Quality Parameters of fly ash as per Indian

Specification are as under :-

Table 3 : Specification of pulverized fuel ash (IS : 3812 - 2003) Requirement

Part 1 Part 2Test Characteristics

Siliceous Siliceous CalcareoA. Chemical

Fly ash used in CMCL for

PPC production

1. SiO2 + Al2O3 + Fe2O3 % min 70 50 70 50 90.23 2. SiO2 % min 35 25 35 25 61.25

3. Reactive silica** % min 20 20 20 20 - 4. MgO % max 5 5 5 5 0.48 5. SO3 % max 3 3 5 5 0.31

6. Alkalies as Na2O % max 1.5 1.5 1.5 1.5 0.74 7. Chloride % max 0.05 0.05 0.05 0.05 0.019

8. LOI % max 5.0 5.0 5.0 5.0 1.98 B. Physical

1. Fineness, m2/kg min 320 320 200 200 356 2. Wet 45micron sieve** % max 34 34 50 50 17.2 3. Lime reactivity, MPa min 4.5 4.5 4.5 4.5 6.8

4. Autoclave % % max 0.8 0.8 0.8 0.8 0.01 5. Compressive strength at 28 days, MPa

Not less than 80% of the strength of corresponding plain cement mortar cube

59.88* =87.28% of

OPC

72

Compressive strength of fly ash-cement mortar cube 59.88 Mpa and

corresponding test on plain cement-sand mortar cube 68.61 Mpa. Compressive

strength of fly ash at 28 days 87.28 % strength observed against corresponding

plain cement mortar cube. Testing carried out as per IS - 1727 : 1967.

We have carried out the test in two parts. In first part we have taken trial up to

35 % addition of fly ash in laboratory scale and than commercial production also

started up to 33 % addition of fly ash . Both the data are given below for taking

out the co-relation in between them.

Portland Pozzolana Cement with higher additions of fly ash

Quality product of PPC with higher addition of fly ash; depends on the quality

of clinker and fly ash. Particle size and fineness is also important factor for

strength development in cement. Trial conducted at laboratory scale

replacement of OPC by consumption of fly ash at different quantities. Test

results are as under-Table Laboratory Ball Mill Physical Test Result

(CMCL clinker with different percentage of fly ash).

Physical Test Fly ash consumption

0% 20% 25% 30% 35%

Normal consistency % 24.5 27.00 26.50 25.75 26.25

Fineness M2/Kg 310 375 347 368 375

Le-Chatelier Expansion mm Nil Nil Nil Nil Nil

Autoclave Expansion % Nil Nil Nil Nil Nil

Initial setting time Minutes 95 110 140 135 140

Final setting time Minutes 130 145 175 170 175

1- Day c/strength MPa 28.0 18.0 16.0 18.0 16.0

3 Days c/strength MPa 43.0 36.5 28.5 28.5 26.0

7 Days c/strength MPa 54.0 49.0 38.5 40.0 38.0

28 Days c/strength MPa 68.0 62.0 60.5 58.0 56.0

The Quality Parameters of Commercial Production are given below with fly ash addition from 20 - 33 %.

Physical Test Results of PPC (Commercial production with different percentage of fly ash)

Fly Ash Physical Test Requirement as per IS : 1489-1991

(Part 1) 20% 25% 30% 33%

Normal consistency % - 29.2 28.5 28.5 28.8

Fineness M2/Kg 300 (Min) 367 330 338 355

Le-Chatelier Expansion

mm. 10 (Max.) Nil Nil Nil Nil

Autoclave Expansion % 0.8 (Max.) Nil Nil Nil Nil

Initial setting time Minutes 30 (Min) 110 120 140 135

Final setting time Minutes 600 (Max.) 160 160 170 175

1- Day c/strength MPa - 16 15 13 13

3 Days c/strength MPa 16 (Min) 27 25 22 21

7 Days c/strength MPa 22 (Min) 37 35 32 36

28 Days c/strength MPa 33 (Min) 61 58 59 60

In the second part of the trial we have conducted tests with 40 to 50 % of fly

ash addition, the results are not only encouraging, but we would like to draw

the attention of the concerned governing bodies, scientists of cement and

environmental field to join their hands in the interest of the nation and the

74

world to make more clean and green environment , the permissible range of

addition of fly ash is to be reconsidered.

The Quality Parameters of cement with 40 - 50 % fly ash addition is given

below to compare the data with different % of addition as per the

requirement of Indian Standards IS 1489 : 1991 (Part I )

Chemical TEST 40% Fly Ash

42% Fly Ash

45% Fly Ash

47% Fly Ash

50% Fly Ash

0 % Fly Ash

LOI % 1.07 1.17 1.32 1.40 1.55 0.46 IR% 35.16 36.68 40.31 41.89 43.68 0.07SO3% 1.49 1.40 1.38 1.30 1.20 2.46 SiO2% 13.01 12.45 10.61 1 10.61 11.36 20.61Al2O3% 5.54 5.25 5.14 5.09 5.05 6.31 Fe2O3% 2.50 2.60 2.70 2.75 2.85 3.80CaO% 39.53 38.79 36.31 34.52 32.70 64.49 MgO% 1.21 1.20 1.21 1.15 1.01 1.21

75

Physical Test 40% Fly Ash

42% Fly Ash

45% Fly Ash

47% Fly sh

50% Fly Ash

0 % Fly Ash

N. C . % 26.25 26.50 26.50 26.50 26.75 24.0

Blain M2/Kg 350 360 360 370 370 299

Lechatelier Exp. mm.

Nil 1.0 Nil Nil Nil Nil

Autoclave Exp. %

Nil Nil Nil Nil Nil Nil

IST (Minutes) 105 110 110 105 100 90

FST (Minutes) 135 140 140 135 130 125

Compressive Strength ( MPa)

1- Day 13 12 10 9 8 26

3- Days 24 22 20 20 16 40

7-Days 38 34 32 32 24 52

28-Days 58 58 52 52 48 69

You may please observe from the above data that with 370M2/Kg fineness

the cement with 50 %fly ash addition is also conforming the relevant

specification. If the fineness is increased to more than 380 ,than it will cross

boundary line for 3 days strength and on better side for 7 days also.

Here it will be better to mention that the most important factor for higher

addition of fly ash is the compatibility of clinker , which is used for the

manufacture of PPC . We would like to inform you that in the process of

Ordinary Portland Cement grinding and above mentioned PPC , the gypsum

was not used as setting retarder. However with the use of 1.5 % Mineral

Gypsum as setting retarder the chemical and physical parameters were

observed as under in the next set of testing with another set of clinker. All the

76

samples were prepared in laboratory ball mill. In this series of test Bhutan

Gypsum was also used as setting retarder

Chemical TEST Cement With 30% Flyash, 1.3%

Cement With 35% Flyash, 1.3%

Cement With 40% Flyash, 1.4%

Cement With 45% Flyash, 1.4%

Cement With 50% Flyash 1.5%

0 % Fly Ash & O% Gypsum

LOI % 1.21 1.35 1.45 1.76 1.92 0.36IR% 22.30 26.13 36.87 38.54 45.29 0.17SO3% 2.23 1.93 2.20 1.83 1.86 2.36SiO2% 16.82 15.39 10.38 9.89 9.79 20.55Al2O3% 4.52 4.42 4.89 4.62 4.36 5.80Fe2O3% 3.80 3.40 3.20 3.00 2.80 4.20CaO% 46.74 45.42 39.23 37.57 32.27 64.56MgO% 1.20 1.20 0.60 1.20 1.01 1.41

Physical Test Cement With 30% Flyash, 1.3% Gypsum

Cement With 35% Flyash, 1.3% Gypsum

Cement With 40% Flyash, 1.4% Gypsum

Cement With 45% Flyash, 1.4% Gypsum

Cement With 50% Flyash 1.5% Gypsum

0 % Fly Ash & O% Gypsum

N. C . % 28.00 28.50 28.75 29.00 29.50 26.00Blain M2/Kg 351 350 350 360 370 300Lechatelier Exp. mm.

Nil Nil Nil Nil Nil Nil

Autoclave Exp. %

0.00 0.04 0.06 0.02 0.02 0.00

IST (Minutes) 120 120 125 120 155 100FST (Minutes) 150 155 165 150 185 130Compressive Strength ( MPa)

1- Day 20 18 16 14 08 293- Days 30 32 24 24 16 417-Days 46 44 38 36 27 50 63 63 56 54 44 64

77

Testing Procedure

Cement clinker, activated flyash, and by-product gypsum are mixed and

ground in the laboratory ball mill to prepare blended cements. Four different

mix proportions (Table-2) were made to prepare 6 kg. cement keeping

cement fineness constant about 3000 sq. cm /gm . Gypsum has been kept 3%

in all the cement to keep uniform content Of S03 . In order to study the

effect of flyash, a blended cement of cement clinker 80% fly ash, 20% by-

product gypsum 3% is prepared by similar fineness.

Result and Discussion

Flyash collected from thermal power plant is highly crystalline in nature

which contains quartz and mullites the major mineral phases and hematite,

magnetite were present as accessory mineral phases. Presence of some glass

(non-crystalline) particles was also observed through microscope. Residual

carbon present in the flyash is 6 %. About 94% particles of flyash are below

90-micron sizes. Activated tlv ash prepared using this flyash in presence of

line bearing material bv sintering at 1260'C temperature contains 56.30%

SiO2, 23.45% Al2O3, 5.58 % FeO3, 7.60 CaO, and 2.28 %LOI.

Mineralogical character of the lime activated flyash is shown in fig.5.

The activated flyash contains mostly calcium bearing complex silicate

mineral phases. It is revealed that formation of calcium aluminosilicate,

calcium iron silicate phase have increased where as free quarts and mullite

phases have been decreased in the activated flyash. Since the flyash is poor

in lime (around 0.8%), the formation of lime bearing compounds in the

activated flyash is almost negligible as observed from XRD pattern. It is

observed that mineralogical phases in activated flyash have been influenced

greatly by the addition of excess lime and high temperature. Generally lime

and lime bearing complex silicate phases impart better pozzolanic property

78

than crystalline quartz and mullite (3AI203SiO2).

Blended cement of different composition MIX- I, MIX-2, MIX-3 and MIX4

have been prepared replacing cement clinker by 50%, 40%, 30% and 20%

respectively by activated flyash (table-1). 3% by-product gypsum has been

used as set retarder in all the samples. The control cement prepared from

clinker containing 97% clinker and 3% gypsum, physical properties of

control cement and of the 4 blended cement have been shown in Table-1. It

is observed that normal consistency and setting time of blended cements

increase with increase of activated flyash from 20 to 50%. However these

values are well within the standard specification. Le-chartelier expansion of

the blended cements are very much negligible showing less that 1mm

expansion where as the same control cements shows expansion up to 5mm.

Compressive strength of blended cement cubes in 1:3 mortar ratio have been

determined up to 90 days. It shows that with increase of activated flyash

addition from 20 to 50%, strength gradually decreases. The blended cements

are marginally lower than the control cement without flyash. But it is

interesting to note that all the blended cements shows remarkably increase in

strength at 60 to 90 days of curing . But in case of controlled cement, the

strength gain after 28 days is very much marginal. The blended cements of

activated flyash show gradual increase in strength as observed up to 90 days

of curing.

The blended cements are hydraulic binders in which a part of portland

cement is replaced by other hydraulic or non-hydraulic materials. Their

general behaviour is quite similar to that of normal portland cements, but in

addition they display some superior properties directly related to durability.

It has been found that fly ash generated in thermal power plants and slag

79

generated in steel plants are suitable for manufacture of blended cements.

Fly ash or slag are inter-ground with cement clinker to produce blended

cement. Many developed countries started using such blended cements in

large quantities in construction of critical structures such as rocket launch

pads, sea water jetties, huge dams etc. Production of blended cements

directly increases the plant capacity without any need for creating additional

clinker making capacity. This reduces the limestone usage and fuel usage in

cement plants. To the extent of reduces limestone and fuel consumption, the

green house gases are eliminated. In addition to conservation of limestone,

fuel and reduction of green house gases.

Manufacture of blended cement is also a cost saving measure, since nearly

70% of electrical energy is consumed in the production of clinker.

Therefore, to the extent clinker is replaced by additives like fly ash, slag etc

in the production of blended cements, is the resultant saving on power

consumption, though not in direct proportion. When grinding to higher

fineness, the blended cements would require higher power consumption than

that required for normal portland cements. The saving would still be

substantial.

In India, blended cements were introduced primarily to get large volume

advantage in cement production without drawing too heavily on clinkering

capacity. But until recently, application of blended cements has not got the

importance to the extent it deserves due to various reasons. With an

availability of over 70 million tonnes of fly ash from the thermal plants and

over 10 million tonnes of slag from the steel plants, large potential exists in

India for manufacturing blended cements.

80

It is understood from experience that all applications do not need only very

high grade cement. For rural applications and plastering works cements like

masonry cement are being considered. Clinker needed for such cements can

be manufactured from low grade limestone. This not only conserves

precious high grade limestone deposits but also reduces the carbon di oxide

generated per ton of clinker produced.

In India, there area large deposits of limestone which have not been utilized

due to their low quality of limestone. Research work within and outside

India proved that reactive belite cement can be manufactured with low grade

limestone. The alite content in such cement would be lower, but belite

content would be higher and more reactive than in normal portland cemnts,

which would give them matching early and long term strength properties.

Both utilization of low grade limestone and production of blended cement

contribute greatly to increase profitability coupled with conservation of

limestone deposits and reducing green house gases in environment and

energy consumption.

Advantages of PPC :

The physical requirements of OPC and PPC are more or less

similar. For all practical purposes, PPC can substitute OPC

readily.

The greatest advantage of this cement is it’s very high durability

factor. The pozzolanic material (fly ash) reacts with lime of

clinker and forms very stable compound which contributes to a

81

very high ultimate strength and hence provides very high

durability to the construction.

Portland pozzolana cement has very good resistance to chemical

attacks. Besides, it is also used as substitute to low alkali OPC

where ever danger of alkali aggregate reaction is to be avoided.

Fine particles of fly ash are spherical in shape. These particles fit

perfectly in between angular particles of aggregate and provide

very smooth finish and make the concrete almost impermeable.

Portland pozzolana cement has very low heat of hydration and

hence, in mass concrete construction like dams, bridges and

canals, etc, PPC concrete has shown rather better behaviour in

respect of cracking than OPC concrete.

Increased impermeability, lower heat of hydration, reduced

alkali aggregate expansion and improved resistance to aggressive

chemical agencies are some of the major benefits to be derived

from the use of PPC.

SLAG CEMENT :

Slag cement, or ground granulated blast-furnace slag (GGBFS), has been

used in concrete projects in the United States for over a century. Earlier

usage of slag cement in Europe and elsewhere demonstrates that long-term

performance is enhanced in many ways. Based on these early experiences,

modern designers have found that these improved durability characteristics

help further reduce life-cycle costs and lower maintenance costs.

Using slag cement to replace a portion of portland cement in a concrete

mixture is a useful method to make concrete better and more consistent.

Among the measurable improvements are:

82

• Better concrete workability

• Easier finishability

• Higher compressive and flexural strengths

• Lower permeability

• Improved resistance to aggressive chemicals

• More consistent plastic and hardened properties

• Lighter color

When iron is manufactured using a blast furnace, the furnace is continuously

charged from the top with oxides, fluxing material, and fuel. Two

products—slag and iron—collect in the bottom of the hearth. Molten slag

floats on top of the molten iron; both are tapped separately. The molten iron

is sent to the steel producing facility, while the molten slag is diverted to a

granulator. This process, known as granulation, is the rapid quenching with

water of the molten slag into a raw material called granules. Rapid cooling

prohibits the formation of crystals and forms glassy, non-metallic, silicates

and aluminosilicates of calcium. These granules are dried and then ground to

a suitable fineness, the result of which is slag cement. The granules can also

be incorporated as an ingredient in the manufacture of blended Portland

cement.

Ground granulated blast-furnace slag (GGBFS): A hydraulic cement

formed when granulated blast-furnace slag is ground to a suitable

fineness.Commonly referred to as slag cement or GBFS.

Hydraulic cement: A cement that sets and hardens by chemical interaction

with water and is capable of doing so under water.

Blast-furnace slag: The non-metallic product, consisting essentially of

silicates and aluminosilicates of calcium and other bases, that is developed

in a molten condition simultaneously with iron in a blast furnace.

83

Granulated blast-furnace slag: The glassy, granular material formed when

molten blast-furnace slag is rapidly chilled by immersion in water. Also

referred to as granules.

Portland cement: A hydraulic cement produced by pulverizing

portlandcement clinker, usually containing calcium sulfate.

Blended cement: A hydraulic cement produced by intergrinding Portland

cement clinker with other materials, or by blending portland cement with

other materials, or by a combination of intergrinding and blending.

Portland blast-furnace slag cement: A blended cement consisting of an

intimately interground mixture of Portland cement clinker and granulated

blast-furnace slag, or an intimate and uniform

blend of portland cement and fine granulated blast-furnace slag in which the

amount of the slag constituent is within specified limits.

Air-cooled blast-furnace slag: The material resulting from the

solidification of molten blast-furnace slag under atmospheric conditions.

Subsequent cooling may be accelerated by application

of water to the solidified surface. (This material can be mined and crushed

for use as aggregates in concrete or fill material; it is not cementitious).

Expanded blast-furnace slag: The light-weight cellular material obtained

by controlled processing of molten blastfurnace slag with water, or water

and other agents, such as steam or compressed air, or both. (This is

commonly used as lightweight aggregate; it is not cementitious).

TYPES OF SLAG :

The present day cement manufacturing practice throughout the world has

been persistently gearing up for large-scale use of industrial and other forms

of waste as substitute raw materials. The advantages gained are manifold

84

and have multiplied effect on both the performance of the company as well

as in image building of the company through fulfillment of an important

social objective of environmental protection through recycling of wastes.

Besides reduction in production cost, recycling of wastes provides the

financial benefit from lower cost of the inputs and also the credit and

acclaim for its role in environmental protection.

The raw-meal feed for cement making basically contains four types of

compounds: carbonates, aluminosilicates, iron and aluminium compounds

(oxides) and minor constituents. Out of these, the first three are very

important in the formation of cement clinker, while the fourth effects, the

manufacturing process (mainly burning, stabilization of the kiln and

preheater performance) depending upon the type and quantity of the minor

constituents present. The three main components should satisfy among

themselves the compositional compatibility, thermal combinability and

physical amenability to production processes (crushing, grinding and

homogenization, burning and clinker formation).

The calcareous component of the cement raw meal is usually any rock

containing CaCO3. Limestone is the most commonly available calcium

carbonate rock. The alumino-silicate compounds admixture are clays, shale,

bauxite, laterite, marl, quartzite etc. and fine coal has been used as a fuel.

Use of Industrial Wastes as a Raw Material for the manufacture of

Clinker

85

The following industrial wastes have potential and can be gainfully utilized

as component of cement raw mix for the manufacture cement clinker.

Flyash :

R&D investigations have revealed that flyash upto 3 percent can be used as

raw mix component for the manufacture of cement clinker. The resultant

OPC conforms all the requirements of all the three National Standards on

OPC viz IS:269-1989, IS:8112-1989 and IS:12269-1987 for 33, 43 and 53

grade OPC respectively.

Steel Slag :

Studies have revealed that steel slag can be used upto 10 percent as a raw

mix component for the manufacturer of cement clinker (Table 19). The

presence of high Fe2O3 (about 25 percent) restricts its bulk utilization.

PERFORMANCE CHARACTERISTICS OF OPC SAMPLES PREPARED

FROM INDUSTRIAL WASTES AS COMPONENT OF CEMENT RAW

MIX

Properties of resultant OPC

Setting Time

(Min.)

Compressive Strength

(MPa) Soundness Sl.

No.

Industrial Waste

Used in making

OPC Fineness

m2/kg IST FST

3

Days

7

Days

28

Days

Le-chat.

(mm)

Auto.

(%)

1. Steel Slag 350.0 64 113 23.0 45.0 59.0 1 0.05

2. Flyash 300.0 95 175 33.0 43.0 65.0 1 0.05

3. Red Mud 270.0 74 282 40.0 53.0 66.0 1 0.15

4. Paper Sludge 313.9 47 222 35.0 48.0 58.8 2 0.05

5. Carbide Sludge 301.1 54 182 33.0 44.0 55.5 1 0.08

86

Properties of resultant OPC

Setting Time

(Min.)

Compressive Strength

(MPa) Soundness Sl.

No.

Industrial Waste

Used in making

OPC Fineness

m2/kg IST FST

3

Days

7

Days

28

Days

Le-chat.

(mm)

Auto.

(%)

6. Phospho Chalk 315.0 85 130 40.5 44.0 59.2 1 0.08

7. Lead-Zinc Sal 320.0 65 262 34.5 46.5 69.0 1 0.06

8. Jerosie 320.1 95 239 36.3 47.7 59.4 1 0.07

9. Chrome Sludge 301.0 84 135 20.0 31.0 42.5 1 0.14

Requirements of Indian Standard Specifications

1. IS:269-1989

(Grade 33) # 225 #30 #600 # 16 # 22 # 33 *10 *0.8

2. IS:8112-1989

(Grade 43) # 225 #30 #600 # 23 # 33 # 43 *10 *0.8

3. IS:12269-1987

(Grade 53) # 225 #30 #600 # 27 # 37 # 53 *10 *0.8

* not more than

# not less than

Red mud :

R&D investigations have established that ~8 percent Red mud can be

gainfully utilized as raw mix component in the manufacture of cement

clinker. The presence of high percentage of alkalies (3 to 4 percent) and

TiO2 (about 12.0 percent) restricts its bulk utilization. The performance

data of OPC provided in Table 19 indicates that OPC conforming to the

requirements of all the three National Standards viz IS:269-1989,

IS:8112-1989 and IS:12269-can be manufactured from red mud.

87

Lime sludges

Paper Sludge

Investigations carried out at NCB on the utilization of lime sludge from

paper industry have indicated that the paper sludge can be utilized upto

74 percent (dry basis) as a component of raw mix for the manufacture of

Portland cement clinker and this clinker can result in OPC conforming to

Indian Standard Specifications IS:269-1989 and IS:8112-1989 (Table

19).

Carbide sludge

The results of R&D work have revealed that carbide sludge can be used

as a source of calcareous component in the raw mix for manufacture of

cement clinker. Taking into account of the tolerance limit of chloride

content in the cement raw mix, the carbide sludge can be used as high as

upto 30 percent in the raw mix for the manufacture of clinker, which

yields OPC conforming to all the three National Standard Specifications

on cement (Table 19).

Phospho-chalk

R&D investigations have established that Phospho-chalk can be used as a

raw mix component for the manufacture of cement clinker. Presence of

impurities viz P2O5, and SO3 restricts its level of utilization to ~8 percent

only (Table 19).

Sugar Sludge

88

Preliminary investigations carried out have revealed that sugar sludge can

be used as a source of calcareous component in the raw mix for

manufacture of cement clinker. Detailed study is needed to establish the

role of impurities present in sugar sludge on the performance of the

cement (OPC) prepared from it (Table 19).

Chrome Sludge

It has been found that chrome sludge can be used upto 5 percent as

mineralizer. Presence of chromium oxide as impurity upto 10 percent

restricts its bulk utilization (Table 19).

Lead-zinc slag

Lead-zinc slag waste was found suitable as a component in the raw

mix for making OPC-clinker upto 6 percent only as it contains high

iron-oxide (~40 pecent). The OPC prepared from lead-zinc slag

conforms to the Indian Standard Specifications IS:12269-1987 for 53

grade OPC (Table 19).

Phosphorus-Furnace Slag

upto 10 percent phosphorous-furnace slag can be gainfully utilized as

raw mix component in making OPC-clinker. The performance of the

resultant OPC conformed to the Indian Standard Specification,

IS:12269-1987 for 53 grade OPC.

Kimberlite waste

Kimberlite can be used upto 10 percent only as a component of

cement raw mix in making OPC-clinker as it contains high MgO (upto

30 percent) and SiO2 (upto 40 percent).

Mine Rejects

89

Depending on the composition, the mine rejects can be used as the

component of the raw mix singly or in combination with other

admixtures for the manufacture of cement clinker.

Use of Industrial Wastes as a Blending Material

Flyash

Flyash is a pozzolana and can therefore be used as a blending material for

the manufacture of Portland Pozzolana Cement (PPC) in the proportion

of 15 to 35 percent depending upon the quality of flyash and clinker. The

quality of flyash can be used for the manufacture of PPC should conform

to the Indian Standard Specification IS: 3812-1981. Performance of a

typical PPC sample prepared with 20 percent flyash, 75 percent clinker

and 5 percent gypsum is presented in Table 20.

Granulated blast furnace slag

Granulated blast furnace slag can be used as a blending material in the

proportion of 25 to 70 percent in the manufacture of Portland Slag

cement (PSC) depending upon the quality of slag and clinker used. The

quality of the granulated slag, which could be used for the manufacture

of PSC, should conform to the Indian Standard Specification IS: 12089-

1987. The performance of the resultant PSC should conform to the Indian

Standard Specification IS 455-1989. The steel slag can replace granulated

blast furnace slag upto 10 percent in the manufacture of PSC.

Performance of a typical PSC prepared with 45 percent granulated blast

furnace slag, 50 percent clinker and 5 percent gypsum is presented in

below Table .

90

PERFORMANCE OF BLENDED CEMENTS PREPARED USING

INDUSTRIAL WASTES

Sl.

No. Properties Flyash

Granulated

Blast

Furnace

Slag

Paper

Sludge

Lead

-Zinc

Slag

Granulated

Phosphorus

Furnace Slag

1 Fineness (M2/kg) 306 350 7.36%

(+90μ)

350 350

2 Setting Times (Min)

IST

FST

118

221

51

155

188

388

200

305

178

323

3 Compressive

Strength (MPa)

3 days

7 days

28 days

20.5

24.8

49.3

35.0

49.5

68.7

N.D.

6.2

10.0

27.3

42.0

60.8

23.5

39.9

61.0

4 Soundness

Le-Chatelier (mm)

Autoclave (%)

1

0.04

1

0.07

1

0.048

Nil

0.028

1

0.08

Lime Sludge

The lime sludge from paper industry has been found suitable as blending

material for manufacture of masonry cement in the proportion of upto 30

percent conforming the Indian Standard specification of IS: 3466-1988.

Performance of a typical masonry cement prepared with 30 percent paper

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sludge, 50 percent clinker, 15 percent flyash and 5 percent gypsum is

presented in Table 20.

Lead-Zinc Slag

R&D investigations at NCB have revealed that lead-zinc slag can be used

as blending material for making Portland Slag Cement (PSC). The slag

does not conform to the requirements of slag to be used for the

manufacture of PSC i.e. IS: 12089-1987 with respect to IR and glass

content. However, the PSC prepared from 40 percent granulated lead-

zinc slag, 55 percent clinker and 5 percent gypsum conformed to all the

requirements of IS: 455-1989 (Table 20).

Phosphorus Furnace Slag

The granulated phosphorus furnace slag conforming to Indian Standard

Specification IS: 12089-1987 can be used as a blending material for the

manufacture of PSC in the proportion of 25 to 70 percent. Performance

of a typical PSC sample prepared with 45 percent granulated

phosphorous furnace slag, 50 percent clinker and 5 percent gypsum is

presented in Table 20.

Phospho Gypsum

Phospho gypsum contains deleterious constituents like P2O5, F- and

free acid, which hinder its utilization in manufacture of cement.

These impurities affect the setting behavior of OPC adversely when

phospho gypsum is used as a set retarder. It can however, be used

after beneficiation or in combination with mineral gypsum.

Performance of OPC sample prepared with 95 percent clinker, 2

92

percent phospho gypsum and 3 percent mineral gypsum is presented

in Table 20.

Jerosite

Characterization of a typical jerosite has revealed that it contains SO3

in considerable amount (up to 30 percent) and therefore it is likely to

be useful as a set-controller in cement manufacture. Detailed

investigations are needed, particularly because of the presence of

deleterious constituent viz ammonia, before it is considered as a set

retarder in the manufacture of cement.

93

CONCLUSION

94

Sample survey is conducted limited to the North and East Bangalore. 1. In present scenario Bangalore market is dependent on OPC since consumption of OPC is only preffered by Non-Trade segment customers like Builders and Developers, Ready mix concrete and other Govt Department Projects whose consumption is nearly 60 % of the market potential. 1. Balance 40% consumption is in Wholesale and Retail segment. 2. Dealers and Retailers were preferring brands which company’s selling

more OPC like Grasim, Zuari , ICL etc.

3. some dealers prefer more OPC than PPC a. Dealers / Retailers prefer more of reputed brands which gives more

profit and easy liquidity. b. Retailers are selling the brands based on customers preference. c. Customers were preferring cement which is faster in setting, due to

Cold Climatic condition in Bangalore customer prefers more OPC. d. 58 % of Dealers/ Retailers are rating enquiries of Maha Shakti

cement in the market is Average. e. 80 % of Dealers/ Retailers are Rating Brand Promotional activities

of Maha Shakti cement is below average. 7. Consumers / Retailers preferring Technical Service. 8. consumer prefers brands which are available at all times. 9.since customers are cost conscious customer choose brand on price fronts apart from brand image.

95

RECOMMONDATIONS

96

1. company should give more importance in Brand Building. 2. Brand equity and Brand awareness should be created.

3. Prices should go with the volume and according to the competitors.

4. Service stands should be given top priority.

5. Technical Services should be provided by the companies to create

awareness of brands to the consumers.

6. company should make stocks available on demand at all times with product mix.

7. Dealer oriented schemes giving moral boost should be encouraged on

par with other companies. 8. 100 % Transparency and accuracy in transactions to dealers should be

made available from time to time.

9. Logistic arrangements should be assured to dealers/ consumers for intercity movements.

10. confidence building measures should be periodically under taken.

97

SWOT ANALYSIS

98

STRENTHS: • MHIL maximizes customer satisfaction through manufacture and

supply of high quality cement in all times. • MHIL has continuous improvement in business practices by

implementing quality management system. • MHIL has harmonious in work environment through motivation

and development of human resources. • MHIL has continuously maintained No.1 position in Home

Markets of Andhra Pradesh by selling around 1.70 million tones per month over the market size of 11.50 million tones.

• MHIL has been always cost effective to sustain in competitive environment.

• MHIL is having planned and productive network of dealers and distributors.

• MHIL is having dedicated man power. • Fast addressing customer grievances if any.

Weakness:

• MHIL is facing logistic bottle necks due to non availability of own Railway sliding.

• Regional supply imbalances. • Lack of Brand equity. • Lack of major Non-Trade parties in the markets other than Andhra

Pradesh.

Opportunities: • Company’s growth plans up to 8 million tones by 2010. • Positive Growth plans in other than A.P. markets. • Recent joint venture project with CRH Group.

Threats:

• Anticipated corrections in demand scenario’s by 2010. • Threat will be from major players like Ultra-Tech, MCL and ICL in

OAP markets particularly in South by the end of 2008. • Continuous interference of Union Govt. of India over controlling

prices. • Liberalization of importing cement. • Anticipation of more cost of Excise duty imposition on finished goods

and raw material there by increasing the cost.

99

The descriptive study is typically concerned with determining frequency

with which something occurs or how variables very together. The

descriptive study requires clear specification of more specific hypothesis and

testing this through statistical interference techniques.

The research design adopted for the study is descriptive research design.

This is need used because of its extensive flexibility, scope of maintenance.

This research design falls under this type because its measure the level of

satisfaction achieved by the company.

DATA COLLECTION METHOD The data for the study is collected both from primary as well as secondary sources but emphasis is much on primary data. The data collection method is survey method. This method is used because it saves both time and cost and also represents the original information. CONTACT METHOD Contact method used for the data collection is personal interview method.

Because of its cost efficiency, speed , flexibility, higher response rate and

accuracy of information, it has advantages of explaining the questions in

detail and the classification regarding the questions and the responses can be

made online and hence relevant and correct information can be ensured.

RESEARCH INSTRUMENT Structured undisguised questionnaire this research instrument has been

adopted to the consumers as the question should be presented in exactly the

same order to all respondents. The reason for the standardization is to ensure

100

that all respondents are replying to the same question. This method avoids

ambiguity and is most productive as replies are well known. Limited in

number, and clear cut. The data can also be easily interpreted and tabulated

using liker scaling. Due to scaling and qualitative picture of the responses

can be had and declarations and interpretation can be made easily.

SAMPLING PLAN

The most important step in the research process is that sampling procedure ,

sample size , sample unit.

This gives an outline to the researcher as to who should be considered for

data collection, the number , the back ground etc., as the entire population

study is tedious and time consuming and non economical, and alternative

method of sampling is used, which ensures the representation of the entire

population.

It is faster, cheaper and economical way of collecting information the

sample considered for this study are consumers of various bikes.

The sampling method adopted here is probabilistic sampling method under

which the simple random sampling technique is preferred.

This method is adopted as each member of the area has a known and equal

chance of being selected. More over it is a convenient and cost effective

technique.

101

SAMPLE SIZE Consumers / Dealers / Retailers : 100 Research Area : North & East Bangalore SOURCES OF SECONADRY DATA The secondary data is collected from all possible sources such as :

1. Company Reports

2. Business Magazines

3. CMA reports

4. Google Search Engine

102

LIMITATIONS

• The research is confined to only North & East Bangalore .

• Time constraint.

• The information given by the respondents may not be accurately correct.

103

BIBLIOGRAPHY

Marketing Management - Philip Kotler Marketing Research - G.C.Beri Research Methodology - R.Kothari Marketing Management - Verma and Agarwal

104

ADVERTISEMENT

Advertisement is a paid form of Non-personal presentation of goods or

services by an identified sponsor to reach out to maximum number of

audiences. Individuals and business firms promote their goods, services,

ideas, issues, corporate messages and people through advertisements.

Advertisement messages can be conveyed to the audience through a wide

range of media.

Advertisement helps organizations create an awareness of their products or

services, or about the organization itself, among the target audience. It then

induces interest, develops desires and finally motivates the consumer to an

action( in the of purchase).

Government and non-profit organizations also indulge in advertising. The

government of India spends lots sums of money to bring about a change in

people’s attitudes and values regarding the girl child and human rights aids

primary education, eradication of polio and leprosy, family planning and

even national integration. Non- government organizations(NGO’s ) like

charitable institutions, hospitals and organizations like CRY ( child relief

and you), help age India and the UNICEF also indulge in advertising. It is

important to understand who uses advertising who there target is and why

there are advertising.

Eg: manufacturers use advertising to reach the individual customer for

attending sales of the product, brand or a service. They also use advertising

to reach resellers such as wholesalers and retailers to purchase there services

and resell them to respective customers. Manufacturers also use advertising

to reach the general public, the government and social service institutions to

105

enhance there public relations. Besides, retailers also use advertising to

reach individual customers for increasing the sales of there retail outlets.

Finally government and non- commercial institutions advertise to promote

social welfare causes.

BENEFITS OF ADVERTISING:

Some important benefits of advertising are:

1. Advertisements create awareness, interest and desire for products and

services in customers to buy them.

2. Advertising is cost efficient as advertisement can reach a vast number

of audiences simultaneously.

3. The message can be repeated several times, there by creating impact

on the mind of customer for eg, : it is the coolest one reminds us of

kelvinator refrigerators.

4. Advertising a product in a certain way can add to its value.

5. It helps in boasting the sales of the company.

6. Once a product/service is purchased, it (advertising) reassures the

customer about the purchase decision, thus helping in reducing the

post purchase dissonance, if any.

7. Advertising helps in changing the perception of product.

8. It supports the activities of the distribution network of the firm by

creating demand and encouraging purchase through pull strategy.

9. It helps in making the job of sales force easier, by creating awareness

among potential customers

10. Advertisements help in offsetting the competitors’ advertisements.

The company may defend its market share or position by responding

to competitors advertising campanions. Advertisements also help

106

compare companies’ product features with those of the competitors.

Sometimes, companies themselves compare the features of there

products with those of the competitor products through

advertisements.

11. Advertising can be very expressive and therefore can dramatize the

whole concept. For eg: kinley’s TV advertisement “boondh boondh

mein vishwas”(confidence in every drop) like birla plus cement “is

cement mein jaan hain” is a dramatization of strength of cement.

12. Advertisement also help in building a strong on product of brand

apart from increasing sales.

DEVELOPING AN ADVERTISING PROGRAMME:

An advertising campaign involves developing a series of advertisements and

targeting them at the potential customers through different media like the

print and broadcast media steps involved in an advertisement programmes

broadly classified as :

1. identifying the target audience

2. specifying the advertising objectives

3. setting the advertisement budget

4. developing advertising message

5. selecting the right media

6. Scheduling the advertisement and measuring advertisement

effectiveness.

107

SALES PROMOTION :

In a specific sense, sales promotion includes those sales activities that

supplement both personal selling and advertising and coordinate demand

make them effective, such as displays, shows, demonstrations and other non-

recurrent selling efforts not in the ordinary routine. This is the definition of

sales promotion as given by the American Marketing Association.

In simple words, sales promotion can be defined as an activity taken up to

boost the sales of a product. It can include a host of activities like running

advertising campaigns, handling public relation activities, distribution of

free samples, offering free gifts, conducting trade fairs, exhibition and

competitions, offering temporary price discounts, launching door to door

selling and telemarketing etc.

Compared to any other element of the promotional mix, sales promotion is

more action oriented. It helps in stimulating the customers to buy a product.

Increasing concern for value for money among customers has brought sales

promotion offers, discount/ gift coupons and point of purchase displays.

PURPOSE OF SALES PROMOTION:

The main purpose of sales promotion is to boost the sales of a product by

creating demand. i.e. both consumer demand as well as trade demand. It

improves the performance of middlemen and acts as a supplement to

advertising and personal selling.

Sales promotion also helps in achieving the following purpose :

• Encourage the customers to try a new product. For example, Eenadu, a

leading Telugu daily in A.P. distributed free copies of the newspaper , for

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a month when it was launched in Hyderabad. Another intresting example

is of Brooke Bond India, the company used to distribute free tea to every

household in the 1940’s, to promote tea culture in Hyderabad.

• Attract new customers example, when HLL extended its Rin detergent

bar brand to detergent powder ,it distributed free sachets to households.

• Encourage the customers to use the product or service and make them

brand loyal. For example Henko detergent introduced scratch card

scheme in which customers usually received discount coupons so that

customers buy the same product again.

IMPORTANT OF SALES PROMOTION :

Sales promotion plays a vital role when :

• Sellers introduce new products or new brands in the markets. This calls

for the companies to indulge in sales promotion activities by providing

extra incentives to the customers to make the customers aware of their

offering and to increase sales.

• When an economy is going through a recessionary phase, customers

become more price sensitive. Sales of different companies come down

drastically as markets under perform. Markets can tackle this problem

with the help of promotional tools like offering gift or discount coupons,

gifts, contests, sweepstakes, etc to the customers.

• The seller aims at triggering the impulsive buying behavior of the

customers. For example, supermarkets and big retail stores display items

like candy, cigarettes, magazines etc. at their sales counter or check out

stands to promote impulsive buying.

• A company seeks to obtain greater cooperation from its retailers. For

example companies offer to train the staff of its dealers/ distributors with

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regard to their products to get a better shelf positioning and extra shelf

space. It helps in earning the good will of dealers and distributors.

DECISIONS IN SALES PROMOTION :

Product characteristics like size, weight, cost, durability etc. and the largest

audience characteristics like their geographic location, demographics etc.

play an important role in helping the company choose the most desirable

sales promotion method. Other factors that influence the promotion

decisions can be the size of the market, the distribution network of the firm,

the political and legal environment in which the firm operates, etc.

Sales promotion can be directed either at consumers in the form of consumer

sales promotion or at distribution channels in the form of trade sales

promotion.

• Consumer sales promotion : this is type of sales promotion is targeted

at the end consumers. Customer sales promotion is a “pull strategy”

and encourages the consumers to make a purchase.

• Trade sales promotion : this type of sales promotion is targeted at the

distribution channel. It is a “push strategy” and encourages the

channel members to stock the product. This is usually known as

“selling into the trade”. This form of promotion is usually not

advertised, as it is an internal affair between the company and its

distribution network partners.

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PERSONAL SELLING:

Marketing is the lifeblood of an organization. It supports a host of

operational functions, including selling in many respects. In marketing, the

focus is on the customer whereas in selling, the focus is on the product.

Marketing involves meeting the needs and wants of the customer while

selling involves pushing the product in the market without any consideration

for the customers needs and wants. A third difference between the two is

that marketing is concerned with producing the product that the customers

want whereas selling involves trying to make the customers want what the

company has no offer. However, the ultimate aim of all marketing and

selling activities is customer satisfaction. Therefore, a salesperson can also

be regarded as a micro marketer.

NATURE AND IMPORTANCE OF PERSONAL SELLING :

Personal selling is one of the elements of promotional mix. Some companies

depend exclusively on personal selling as their promotional tool while others

use a combination of promotional mix elements such as advertising, sales

promotion, direct marketing, public relations and personal selling.

Since the beginning of the manufacturing process, companies have relied on

their sales force to personally sell their products. because of personal selling,

products of various kinds enter customers households as well as offices.

The person selling is responsible for helping perple stain a certain standard

of living. Personal selling plays an important role in increasing sales

volumes and helps generates profits for firms. Thus, personal selling helps in

the growth of the economy.

Personal selling takes place when a seller or sales person, in a face to face

interaction with a potential buyer , tries to persuade him to purchase the

product or services he is promoting on behalf of a company. Personal selling

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takes place at a personal level and involves a personalized transaction. The

sales person communicates the product’s benefits to the customers in an

attempt to inform him and convince him to make a purchase. Personal

selling provides the sales person with immediate feedback and helps him

adjust or modify his sales proposition to suit the requirements of the buyer.

Person selling is a more effective promotional tool when compared to

advertising. It gives a sales person the freedom to develop and deliver a

unique selling proposition to each individual customer depending on the

latter’s requirements.

The salesperson can observe the interpret information from the verbal cues

and non verbal cues of the customer and customize his proposition

accordingly.

In personal selling, the salesperson has to meet certain goals these includes :

• Finding new prospects

• Convincing the prospects to purchase the companies prodict.

• Keeping the customers satisfied and indirectly influencing them to

provide positive word of mouth publicity about the company.

Importance of personal selling:

Personal selling is important foe the sales and revenue growth of an

organization. it can be described as a handy tool in the hands of marketers

for the following reasons:

• Personal selling gives marketers the freedom to make adjustments in

the promotional message to satisfy the information needs of

customers.

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• Unlike advertising, publicity and sales promotion, it allows the

marketers to target their promotional message with utmost precision at

the most promising leads.

• It provides the marketer with more information about customer

preferences and also serves as a means of obtaining feedback about

the company and its products.

• The interaction between sales persons and customers helps the

company identify the strengths and week ness of their new products. It

helps the company take necessary corrective action.

• Personal selling helps marketers obtain necessary feedback to improve

their new product development and customize the product to suit the

requirements of individual customers.

• Effective sales force also helps a company build and improve

relationship with customers.

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Questionnaires for Dealers / Retailers

• Which cement will you sell more? a) Blended Cement b) OPC

• What made you to sell more Blended Cement?

a) Consumer preferred b) Quality c) Availability d) Profitability

• Name the Four major Blended Cement brands as per your recall?

_________________ _________________ _________________ _________________

• How do you rate the Quality of Maha Shakti Cement? a) Excellent b) Good c) Average d) Below average

• For a blended cement what are the four features you assess?

_________________ _________________ _________________

• Are you satisfied with availability of Maha Shakti Cement? a) Yes b) No

• How is the enquiries of Maha Shakti Cement in Market? a) Excellent b) Good c) Average d) Below average

• How is brand promotion activities of Maha Shakti cement?

a) Excellent b) Good c) Average d) Below average

• Would you recommend Maha Shakti to your customers?

a) Yes b) No __________________________________________________________________________________________________________________________

Name of the Dealer Signature

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Questionnaires for Consumers • Which cement are you using?

a) OPC b) PPC C) Slag

• What made you to buy above varieties? a) Climatic Condition b) Strength

c) Setting Time d) Color

• If you are using Blended cement what made you to Buy Blended Cement? a) Cost b) Quality c) Availability d) Color

• How is the strength of the Blended Cement?

a) Excellent b) Good c) Average d) Poor

• How is the Color of the Blended Cement?

a) Excellent b) Good c) Average d) Poor

• How is the Availability of Blended Cement? a) Excellent b) Good c) Average d) Poor

• What are the top four Blended Cement you can read?

_______________ _______________ _______________ _______________

• If you are a user, are satisfied with Maha Shakti Cement? a) Yes b) No c) Not a user

• How did you come to know about Maha Shakti? a) Dealers/ Retailers b) Media c) Stock availability c) Word of Mouth

Name of the person Signature