CHAPTER ONE: INTRODUCTION

1.1 INTRODUCTION

In India, cement was first manufactured in 1904 near Madras since then Indian

cement industry has covered a long journey in its growth path.

The Indian cement industry has number of fragmented firms. There is lot of new

players procuring raw material sources, like limestone reserves on lease basis. Big

players are continuously consolidating by acquiring smaller/ mini plant that find it

difficult to sustain in a highly competitive price market. The cement market is

oligopolistic with more or less homogenous product. In India, there are various

cement manufacturers who sale cement and attempt to prove that their product is

different and better than the others. The multiple brands available in the market

make the brand selection a difficult process.

Cement is a bulk commodity. It is sold in 50 kg packs as OPC grade 33, 43 and 53,

PPC and PSC etc. It is used in construction activities as a one of the constituent of

concrete of binding nature. Cement companies produce cement as per BIS

standards and provides test certificate which is well within the BIS limit; so there is

hardly any scope for differentiation in the product of various cement companies.

Due to similar raw material inputs and there is no significant differentiation in the

manufacture of cement produced across various cement firms.

Customer buying process depends on purchasing behavior and external information

sources which influence in their buying decision. The project is on the study of

purchase behavior of customers of cement.

As the customers lack basic knowledge in regard to technical aspects of cement, and

superficially if someone sees cement it gives almost a same look which really makes

a highly difficult task to convince customer about superiority of any good brand

over other brands.

Cement customer purchase more than the physical product in fact they buy an

augmented product which includes easy services, availability, discount,

promotional scheme, credit terms, timely delivery, and originality of cement bags,

technical service and complaint handling. So when it is difficult to differentiate a

physical products, detail augmentation of a product and its services can add

substantial value in the eyes of the customers which in turn will divert or attract

the customer toward that particular brand.

So there is a need to identify and understand the behavior of different segments of

customers in purchasing of cement, their needs and services expected by them

before and after purchase which will help in offering differentiated product.

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1.2.1 HISTORY OF CEMENT

An early version of cement made with lime, sand, and gravel was used in

Mesopotamia in the third millennium B.C. and later in Egypt. It is uncertain where it

was first discovered that a combination of hydrated non-hydraulic lime and a

pozzolan produces a hydraulic mixture, but concrete made from such mixtures was

first used by the Ancient Macedonians and three centuries later on a large scale by

Roman engineers. They used both natural pozzolans and artificial pozzolans

(ground brick or pottery) in these concretes. Many excellent examples of structures

made from these concretes are still standing, notably the huge dome of the

Pantheon in Rome and the massive Baths of Caracalla. The vast system of Roman

aqueducts also made extensive use of hydraulic cement. Although any preservation

of this knowledge in literary sources from the middle ages is unknown, medieval

masons and some military engineers maintained an active tradition of using

hydraulic cement in structures such as canals, fortresses, harbors, and shipbuilding

facilities. This technical knowledge of making hydraulic cement was later formalized

by French and British engineers in the 18th century.

The history of the cement industry in India dates back to the 1889 when a Kolkata-

based company started manufacturing cement from Argillaceous. But the industry

started getting the organized shape in the early 1900s. In 1914, India Cement

Company Ltd was established in Porbandar with a capacity of 10,000 tons. The

World War I gave the first initial thrust to the cement industry in India and the

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industry started growing at a fast rate in terms of production, manufacturing units,

and installed capacity.

In 1927, Concrete Association of India was set up to create public awareness on the

utility of cement as well as to propagate cement consumption.

The cement industry in India saw the price and distribution control system in the

year 1956, established to ensure fair price model for consumers as well as

manufacturers. Later in 1977, government authorized new manufacturing units (as

well as existing units going for capacity enhancement) to put a higher price tag for

their products. A couple of years later; government introduced a three-tier pricing

system with different pricing on cement produced in high, medium and low cost

plants.

Cement industry in India was under full control and supervision of the government.

However, it got relief at a large extent after the economic reform. But government

interference, especially in the pricing, is still evident in India. In spite of being the

second largest cement producer in the world, India falls in the list of lowest per

capita consumption of cement with 125 kg. The reason behind this is the poor rural

people who mostly live in mud huts and cannot afford to have the commodity.

Despite the fact, the demand and supply of cement in India has grown up. In a fast

developing economy like India, there is always large possibility of expansion of

cement industry.

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1.2.2 PROFILES OF CEMENT INDUSTRY

In India, cement is the one of the major commodity in building material. It is used

extensively in household/ residential /commercial and industrial construction also

which makes India a high-potential market for cement. Housing sector has been a

very dynamic sector in India for the last five years due to urbanization and has led

demand to increase tremendously because of the increase of purchasing power of

individual but availability of cheaper cement for less important structures affects

the rural demand.

In current scenario big players of the Indian cement industry are in the process of

consolidation. Presently the top cement companies are undergoing strategic

alliances/ merge, to counteract competition.

The construction sector blame of global economic slowdown leading to slackening

of demand for housing; but withstanding that hard time, then also cement sector is

still growing when compared to the global average.

The Indian cement industry has achieved an installed capacity of 242 million tonnes

and is targeted to reach 600 million tonnes by 2020. Despite a high demand, our per

capita cement consumption is very low, where the world average is 396 kg, in India

the per capita consumption is only 156 kg. India presently predominated by young

population.

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The rising cost of transportation is causing a heavy strain on the cement and

construction industry. As a result, companies have not only to explore alternative

sources of energy and materials but also strive to enhance operational efficiency.

The need of the hour is to invest adequately in developing human resources capable

of addressing the professional needs of construction industry, like application of

advanced technologies in construction sector, manage project, litigation which

includes complaints, finance, etc.

The number of big integrated plants in India is above135. In addition to the big plants

there were above 350 mini cement plants which do not have their own clinker

sources and depends on big plants. Capacity in the industry is being added at a

growing pace.

Southern region ahead in terms of installed capacity, production of cement.

The availability of limestone is concentrated at certain locations which in turn

created uneven distribution of cement plants across various regions of India.

So there is unequal distribution of cement plants in terms of installed capacity

regional wise and state wise. Cement being a bulk commodity, logistics is one of

the challenge the industry is facing in terms of transportation of cement from

the production areas to the consumption areas. For cement manufacturer, to get a

high contribution in profit if it is sell in market near to the plant. Even if it is sold in

far or remote areas which is above 200 km and export to other states, prices has to

be high enough so that the contribution to profit justifies the sales.

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1.2.3 CEMENT PLAYER

In general the Indian cement industry is grouped into five regions:

1) East: West Bengal, Bihar, Odisha, Assam, Meghalaya and Jharkhand.

2) West: Maharashtra and Gujarat.

3) North: Punjab, Delhi, Haryana, Himachal Pradesh, Rajasthan, Chandigarh,

Jammu and Kashmir.

4) South: Tamil Nadu, Kerala, Andhra Pradesh, Karnataka, Pondicherry,

Andaman and Nicobar and Goa.

5) Central: Uttar Pradesh, Madhya Pradesh and Chattisgarh.

REGIONWISE CEMENT PLAYERS

EASTERN REGION

1. ACC Ltd

2. Ambuja Cement

3. Ultratech Cement

4. Birla Corp Cement

5. Century cement

6. OCL India Ltd

7. Lafarge cement

8. Jaypee Cement

9. Ramco Cement

10. Burnpur Cement

12. Star cement

CENTRAL REGION

1. Lafarge cement

2. Jaypee cement

3. Ultratech Cement

4. ACC cement

5. Ambuja cement

6. KGS cement

7. Prism cement

8. Heidelberg cement

9. Century cement

NORTHERN REGION

1. Grasim Industries Ltd

2. Ambuja Cements Ltd

3. ACC Ltd

4. Prism Cement Ltd

5. Birla Corporation Ltd

6. Shree Cement Ltd

7. J K Cement Ltd

8. Binani Cement Ltd

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SOUTHERN REGION

1. Grasim Industries Ltd

2. ACC Ltd

3. Ultratech Cement Ltd

4. India Cements Ltd

5. Madras Cements Ltd

6. Zuari Cement

WESTERN REGION

1. Ambuja cements

2. ACC cement

3. Ultratech Cement

4. Century cement

There are a number of manufacturer prevailing in the cement industry in India.

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However, there are cement manufacturer that account for more than 50% of the

total production in India.

Following are some of the major cement manufacturer in the Indian cement

industry:

1. ACC Cement

2. Gujarat Ambuja Cement

3. Lafarge Cement

4. Ultratech Cement

5. Orissa Cement (Konarak)

6. India Cements Ltd.

7. JK Lakhsmi Cement

8. Jaypee Cement

9. Century Cement

10. Madras Cements Ltd. ( The Ramco Cements Ltd)

11. Birla corp. cement

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The detail profile of each cement company present in West Bengal as mentioned

below:

ACC Cement Ltd.

ACC Limited is India’s large manufacturer of cement and ready mixed concrete with

a countrywide network of factories and regional sales offices. It was established in

1936, it is acknowledged as a pioneer and trendsetter in cement. ACC Limited is now

a part of the worldwide Holcim Group.

ACC's manufacturing operations are spread throughout the country with seventeen

cement factories, more than fifty ready mix concrete plants. It has a countrywide

distribution network of dealers/retailer.

Associated Cement Companies Ltd manufactures OPC, blended cement and special

cement. It has fifteen manufacturing plants located throughout the country.

The fifteen manufacturing plant at several location such as Bargarh, Chaibasa,

Chanda, Damodhar, Gagal, Jamul, Kymore, Kudithini, Lakheri, Madukkarai, Sindri,

Thondebhavi, Tikaria, Vizag and at Wadi.

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Ambuja Cement ltd

Ambuja Cements Ltd is now under a part of a global conglomerate Holcim, is one of

India’s leading cement manufacturers and has completed more than 25 years of

operations.

The company, initially called Gujarat Ambuja Cements Ltd, was founded by Narotam

Sekhsaria in 1983 in partnership with Suresh Neotia. Global cement major Holcim

acquired management control of Ambuja in 2006along with strategic investments in

ACC Limited.

Ambuja current cement capacity is 27.25 million tons. The Company has five

integrated cement manufacturing plants and eight cement grinding units across the

country. It is the first Indian cement manufacturer to build a captive port with three

terminals along the country’s western coastline to facilitate timely, cost effective

shipments of bulk cement to its customers.

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Lafarge Cement

Lafarge entered the Indian market in 1999, through its cement business, with the

acquisition of Tata Steel's cement located at Jojobera. Consecutively this acquisition

was followed by the purchase of the Raymond Cement facility in 2001 located at

Sonadih. Lafarge has cement plants in Chhattisgarh, Jharkhand, Rajasthan and West

Bengal. The total cement production capacity in the Indian market is currently over

11 million tonnes.

In recent years, Lafarge has significantly enlarged its operations in India across its

three business divisions - Cement, Aggregates and Concrete. In 2008, Lafarge

acquired Larsen and Tourbo concrete business and is today one of the leading

players in the ready-mix concrete business with 65 plants across the country.

Lafarge India is one of the leading players in the cement industry in Eastern and

Central India, with its leading brands - Concreto and Duraguard. Lafarge Readymix

division offers decorative concrete such as mega series, concrete master, artevia and

hydromedia. Recently Lafarge Cement has merged with Holcim group.

About Holcim

This group was founded in Switzerland in 1912; Holcim is one of the world’s leading

suppliers of cement and aggregates employing some 80,000 people, with production

sites in around 70 countries. Holcim’s core businesses include the manufacture and

distribution of cement.

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UltraTech Cement

UltraTech Cement Limited, an Aditya Birla group company, is a public company,

listed on the Bombay Stock Exchange and the National Stock Exchange.

UltraTech has an annual capacity of 52 million tonnes. It manufactures and markets

ordinary Portland cement, Portland blast furnace slag cement, Portland pozzalana

cement, ready mix concrete, white cement and wall care putty.

UltraTech is the country’s largest exporter of cement clinker.

The company has a capital outlay of around Rs. 11,000 crores to be spent over the

next three years. These include setting up of additional clinkerisation plants at

Chhattisgarh and Karnataka together with grinding units, bulk packaging terminals

and ready mix concrete plants across the country and orders have been placed for

major equipment for setting up the new projects. These expansions are expected to

be operational and will enhance the company’s cement capacity by 9.2 million

tonnes per annum.

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OCL India Ltd. (Brand-Konarak Cement)

The origin of OCL was seeded in the time that signaled India's independence.

Jaidayalji Dalmia, an industrialist set up a cement plant at Rajgangpur during 1950 -

51 at the request of government of Odisha to manufacture super grade cement for

use in the construction of Hirakud dam. The plant Orissa cement limited during

1952 transformed itself into OCL India Limited during 1996.

From 500 TPD capacity imported single wet process Kiln of FL Smidt,, the house of

'Konark' brand cement has covered a long way.

To ensure proper availability and timely supply of cement to the customers in the

coastal area of Odisha, split level cement grinding unit Kapilas cement works was

set up near Cuttack in 2008.

The product range various grades of Ordinary Portland Cement like 43 and 53

grades; 53 Grade cement for use in the manufacture of railway sleepers; Portland

Slag Cement (PSC); Fly Ash based Portland Pozzolana Cement (PPC).

OCL also ventured into manufacture of a wide range of cement allied products

including spun pipes etc., in early sixties of the last millennium and became a prime

source of high strength reinforced spun pipes and pre-stressed concrete poles.

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India Cements

The India Cements Ltd. began in the form of a cement factory at Talaiyuthu, in

Tirunelveli district, Tamil Nadu. It is one of the oldest Indian corporates, established

in 1946, the company set up its first plant in 1949 at Sankarnagar (Talaiyuthu).

India cements Ltd was founded in the year 1946 by two men, Shri S N N

Sankaralinga Iyer and Sri T S Narayanaswami.

From a two plant company having a capacity of just 1.3 million tonnes in 1989, the

company has robustly grown in the last two decades to a total capacity of 15.5

million tonnes per annum. It has seven integrated cement plants in Tamil Nadu and

Andhra Pradesh, one in Rajasthan (through its subsidiary, Trinetra Cement Ltd) and

two grinding units, one each in Tamil Nadu and Maharashtra.

Its product portfolio includes ordinary Portland cement and blended cement.

The present capacity is 15.5 million tonnes per annum; it pertains to seven

integrated plants in Tamilnadu & Andhra Pradesh, one in Rajasthan (through its

subsidiary Trinethra Cement Limited) and two Grinding units, one each in

Tamilnadu & Maharashtra.

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Jaiprakash Associates Limited

Jaiprakash Gaur, founder and chairman of Jaiprakash Associates Limited had a stint

with the Government of Uttar Pradesh and branched off on his own, to start as a civil

contractor in 1958, group is the third largest cement producer in the country. The

group's cement facilities are located today all over India in 10 states, with 18 plants

having an aggregate cement production capacity of 24 million tonnes and same is

poised to become 36 million tonnes.

It has plants located in Rewa & Bela (Madhya Pradesh) and Sadva Khurd (Uttar

Pradesh). The company is upgrading its capacity to 6.5 million tonnes through the

modernizing of the existing units and the commissioning of a new grinding unit at

Tanda (Uttar Pradesh). The company manufactures a wide range of world class

cement of OPC grades 33, 43, 53 and special blends of pozzolana cement.

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Madras Cements Ltd.

The Ramco Cements Limited (Formerly Madras Cements Ltd) is the flagship

company of the Ramco Group, a well-known business group of South India. It is

headquartered at Chennai. The company is engaged in cement, clinker, dolomite, dry

mortar mix, limestone; ready mix cements (RMC) and units generated from

windmills. The company has three plants in Tamil Nadu, one in Andhra Pradesh and

a mini cement plant in Karnataka. Madras Cements plans to expand by putting up

RMC plants.

The main product of the company is Portland cement, manufactured in eight state-

of-the art production facilities that include Integrated Cement plants and Grinding

units with a current total production capacity of 15.5 MTPA. The company is the

fifth largest cement producer in the country. The company produces OPC -43, OPC –

53 grade and Portland Pozzolona Cement.

Integrated Cement Plants

1. Ramasamy Raja Nagar, Virudhunagar, Tamil Nadu

2. Alathiyur, Ariyalur District, Tamil Nadu

3. Ariyalur, Govindapuram, Ariyalur District, Tamil Nadu

4. Jayanthipuram, Andhra Pradesh

5. Mathodu, Chitradurga District, Karnataka

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Grinding Units

1. Uthiramerur, Kanchipuram District, Tamil Nadu

2. Valapady, Salem District, Tamil Nadu

3. Kolaghat, Purba Medinipur District, West Bengal

Packing Unit

1. Nagercoil Packing Unit, Kumarapuram, Aralvaimozhi, Kanyakumari District,

Tamil Nadu

2. Hyderabad Packing Plant, Pochampally Road, Malkapur, Nalgonda District,

Andhra Pradesh

In the 1950s, investment in Cement Industry was not attractive due to price controls

and the massive investments required.

The first plant of RCL at Ramasamy Raja Nagar, near Virudhunagar in Tamil Nadu,

commenced its production in 1962 with a capacity of 200 tonnes, using wet process.

In 70s, the plant switched over to more efficient dry process. A second kiln was also

added to bring the total capacity to 15lakh tons per annum.

The second venture of RCL is its Jayanthipuram plant near Vijayawada in A.P., set up

in 1987. The third venture of RCL is at Alathiyur in Tamil Nadu. It was set up in 1997

and expanded by addition of another line in 2001 with capacity of 30.50 lakh tons

per annum plant. Ariyalur plant started operations in 2009 with a capacity of 2

million tonnes per annum.

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Birla Corporation Limited

The Cement Division of Birla Corporation Limited has seven plants, two each at

Satna (M.P.) - Satna Cement Works & Birla Vikas Cement, Chanderia (Rajasthan) -

Birla Cement Works & Chanderia Cement Works, Durgapur (W.B.) - Durgapur

Cement Works & Durga Hitech Cement - and one at Raebareli (U.P.)-Raebareli

Cement Works. They manufacture varieties of cement like Ordinary Portland

Cement (OPC), 43 & 53 grades, Portland Pozzolana Cement (PPC), Fly Ash - based

PPC, Low Alkali Portland Cement, Portland Slag Cement, Low Heat Cement and

Sulphate Resistant Cement.

The cement is marketed under the brand names of Birla Cement Samrat, Birla

Cement Khajuraho, Birla Cement Chetak and Birla premium cement, bringing the

product under the common brand of Birla cement while retaining the niche identity

of Samrat for blended cement, i.e. PPC & PSC, for all the units, Khajuraho (for the

OPC product of Satna) and Chetak (for the OPC product of Chanderia).

Birla Cement Khajuraho/Chetak-53 Grade Ordinary Portland Cement, Birla Cement

Khajuraho/Chetak - 43 grade Ordinary Portland Cement, Birla Cement Samrat -

Portland Pozzolana Cement / Portland Slag Cement, Birla Cement Khajuraho -

Sulphate Resisting Portland Cement, Birla Cement Khajuraho - Low Alkali Low Heat

Cement, Birla Cement Khajuraho - IRS-T40 OPC 53S Cement

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Century Cement

Century Cement is a division of Century Textiles and Industries Ltd, a flagship

company of BK Birla Group. The company is well diversified having interest in

cement, textiles, rayon, chemicals, pulp and paper.

Century Cement is situated at Baikunth(Tilda), district Raipur in the state of

Chhattisgarh. Baikunth is 35 Km east of Raipur on Mumbai - Howrah (via Nagpur),

South East Central Railway Main Line. The installed capacity of Century Cement is

2.10 million tonnes per annum.

Apart from this, company has cement plants namely Maihar Cement & Maihar

Cement at Sarlanagar, Dist. Satna, in the State of Madhya Pradesh with an installed

capacity of 4.20 million tonnes per annum and Manikgarh Cement at Gadchandur,

Chandrapur, Maharashtra with an installed capacity of 2.20 million tonnes per

annum and Sonar Bangla (Grinding Unit) at village Dhalo, Dist. murshidabad in the

state of West Bengal with an installed capacity of 1.50 million tonnes per annum.

The combined capacity of all the cement plants taken altogether is 10 million tonnes

per annum.

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Burnpur Cement Limited

Burnpur Cement Limited was incorporated on June 19, 1986 as Ashoka Concrete

and Allied Industries Private Limited. The company started their operation in

cement industry in October 1991 with a small plant of 30 tonnes per day at Asansol

to produce Portland Slag Cement. The name of the company was changed to

Burnpur Cement Private Limited on September 18, 2001. Presently in eastern

region the plant is producing 1000 tonnes per day cement.

The Company started operations in the cement industry in October1991 with a

small cement plant of 30 tonnes per day in Asansol to produce Portland Slag Cement

conforming to BIS 455:1989. The production phase was ushered in with the

commissioning of the Plant in October, 1991. A slow and steady commissioning of

other units led to a gradual stepping up of production over the years.

The capacity of the grinding unit has not been optimally utilized due to non-

availability of clinker. Considering the constraints in availability of raw material

(clinker) and also for planned expansion in the cement sector the company has

decided to set up an 800 tonnes per day expendable to 1600 tonnes per day

Clinkerisation and Cement grinding unit at Patratu Hazaribagh, Jharkhand which is

approximately three km away from Patratu Thermal Power Station and about 10 to

15 km from vast limestone deposits.

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Rashmi Cement

Rashmi Group of companies is a fast growing Group in the field of manufacturing

steel and cement. The company has developed core competence in minerals, steel

and cement with 40 years of experience. The Group’s turnover is around Rs.3000

Crores and net worth is Rs.1000 Crores.

Rashmi Group founded in 1966 really got impetus from its real promoter, a true

visionary, Sri Sajjan Kumar Patwari. The group has grown from merely a re-rolling

mill to a full fledged cement crushing plant having capacity of 2 lakh tonnes per

annum at Jhargram in West Bengal. Rashmi Group is presently in the process of

capacity addition in backward/forward integration to achieve the ultimate capacity

of 2 million tonnes per annum at Kharagpur.

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Cement Manufacturing Company Limited (CMCL) - Star cement

Cement Manufacturing Company Limited (CMCL) is the largest cement

manufacturer in north east India. The Plant is spread across 40 acres of land in the

idyllic town of Lumshnong, a strategic location at Meghalaya that ensures limestone.

CMCL is a 70.48% subsidiary of Century Plyboards (India) Limited.

CMCL’s product range includes Ordinary Portland Cement (OPC 43-Grade) and (OPC

53-Grade) and Portland Pozzolana Cement (PPC) in line with evolving customer

needs. CMCL’s 0.6 MTPA integrated cement plant at Lumshnong (Meghalaya) is

proximate to key raw material reserves of limestone, coal and shale. The company

also added 0.46 MTPA cement unit in Meghalaya (via its subsidiary) aggregating a

capacityof1MTPA.

CMCL’s brand “Star Cement’ is one of the largest in the Northeastern region. Its

output is marketed through a 400 dealer network resulting in the largest market

share in North East India.

The plant is located at village Lumshnong, situated on National Highway 44 and 135

Kms away from Shillong towards Silchar; in Jaintia Hills, Meghalaya.

This plant has been producing clinker from 23rd Dec.2004 and cement from 2nd

Feb.2005. Presently CMCL is marketing super quality clinker to different grinding

units located in India, Nepal & Bhutan, along with cement of 3 types 43 OPC, 53 OPC

and PPC cement.

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Foreign Players apart from above mentioned Lafarge and Holcim Group

Italcementi Group- Zuari Cement

Italcementi Group entered the Indian market in January 2001, through the

acquisition of Yerraguntla cement plant, located in the southern part of Andhra

Pradesh.

This investment was initially made through a 50/50 joint-venture with the KK Birla

Group; then, in May 2006, Italcementi Group acquired the full control of the

company.

In January 2002 Zuari Cement took over another company, Sri Vishnu (SVCL),

situated in Sitapuram, in the northern part of Andhra Pradesh State, near the capital,

Hyderabad, 3rd consumption centre of the South.

Until now, Italcementi Group has invested around 200 million euro in India. The

reference market spreads over almost the whole of South India and represents in

excess of 30% of the country's consumption. In the South, Italcementi Group holds a

market share of 5.0%.

The group has further strengthened its presence in India with a strong industrial

investment plan, setting up a second line in Yerraguntla which has begun operations

by March 2010.

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Heidelberg Cement India Limited

HeidelbergCement India Limited is is a subsidiary of HeidelbergCement Group,

Germany. The company has its operations in central India at Damoh (Madhya

Pradesh), Jhansi (Uttar Pradesh) and in southern India at Ammasandra (Karnataka).

The company increased its capacity to 5.4 million tonnes p.a. through brown field

expansion of its facilities in central India in 2013.

The new manufacturing capacity has enabled the Company to increase its market

share in Central India i.e. Madhya Pradesh and Uttar Pradesh and in markets of

Bihar, Haryana and Uttarakhand. The Company has carved a niche for its brand

"mycem" in new markets and has further improved its brand positioning in the

existing ones.

It is expected that the cement industry is likely to grow more than 8.5 per cent if

backed by government initiatives in rural development, infrastructure and housing.

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1.2.4 CEMENT MANUFACTURING PROCESS

Cement is an artificially building material made from grinding and mixing of

siliceous (such as sand stone), calcareous (such as lime stone or chalk) and

argillaceous material (such as shale and clay) in certain proportions, fusing the

mixture in rotary kiln at 14500c, cooling down the fused product to form clinker and

finally grinding the clinker along with gypsum in certain proportion, to obtain the

resultant product as OPC. The process obtained by dry process which is mostly

adopted in Cement companies in India.

Cement used in construction industry may be classified as

Hydraulic- set and harden in water and gives product which is stable. e.g. Portland

cement

Non Hydraulic- does not set and harden in water such as non hydraulic lime or

which are unstable in water e.g. Plaster of Paris.

The story of invention of Portland cement is attributed to Joseph Aspdin of England,

who took the patent of Portland cement on 21 st October 1824. Though the history of

cement material was used by Egyptians, Romans and Indian in their ancient

constructions and is believed that it is obtained by burning gypsum.

Limestone, the major ingredient needed for making cement is quarried. Small

quantities of sand and clay are required as well. Limestone, sand and clay contain

the four essential elements required to make cement: calcium, silicon, aluminium &

27
iron.

Limestone rocks are transported from the quarry to the cement plant and fed into a

crusher, which crushes the boulders into marble-size pieces.

The limestone pieces then go through a blender where they are mixed with the

other raw materials in the right proportion.

Raw materials are then ground to a powder. This is sometimes done with rollers

that crush the materials against a rotating platform.

This mixture then goes into a huge, extremely hot, rotating furnace to undergo a

process called ‘sintering’. Sintering is to cause to become a coherent mass by heating

without melting, i.e. the raw materials become partially molten. The raw materials

reach about 2700° F (1480°C) inside the furnace. This causes chemical and physical

changes to the raw materials and they come out of the furnace as large, glassy, red-

hot cinders called ‘clinker’.

This clinker is cooled and ground into a fine grey powder. A small amount of

gypsum is added during the final grinding. The finished product is Portland cement.

The cement is then stored in silos (large holding tanks) where it awaits distribution.

The cement is usually shipped in bulk in purpose-made trucks, by rail or even by

barges and ships. Some is bagged for those who want small quantities.

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Chemical composition of Portland cement

Ca0 (Lime): Control strength and soundness, its deficiency reduces strength and

setting time.

SiO2 (Silica): Gives strength. Excess of it causes slow setting.

Al203 (Alumina): Responsible for quick setting, if in excess, it lower the strength.

Fe203 (Iron oxide): Gives color and helps in fusion of different ingredients

The rate of setting of cement paste is controlled by regulating the ratio silica/

(Alumina+ iron oxide).

Where development of much heat of hydration is undesirable, the silica content is

increased to about 21percent, and the alumina and iron oxide contents are limited

to 6 percent each.

Resistance to the action of sulphate waters is increased by raising further the silica

content to 24 percent and reducing the alumina and iron contents to 4 percent each.

The oxides in fusion interact with each other to form a series of more complex

product called cement clinker.

Bouge’s compound of OPC:

Lime silica and alumina get fused inside the kiln at 1450 0c and forms a spherical

shaped clinker of any size between 5mm to 25 mm.

The clinker consists of four bogue’s compound viz.

Tri-calcium Silicate contains all the essential properties of Portland cement.

Its hydration is rapid and it undergoes an initial and final set within few hours after

gauging and when properly prepared shows no sign of unsoundness.

C3S attains the greater part of its strength in early ages.

C2S – Di calcium silicate – 16% responsible for 28 days strength

Di-calcium Silicate exhibits no definite setting time and the gauged mass sets very

slowly over a period of few days. C2S produces little strength at early ages but gains

steadily in strength at letter ages.

C3A – Tri calcium aluminate – 10% responsible for early strength and contributes

towards setting of cement paste and release heat of hydration. Tri-calcium

Aluminate gives ‘flash set’ on gauging with water and this is accompanied with

evolution of much heat. It gives some strength at one day but shows no subsequent

development of strength. The presence of C3A increases the rate of hydration and

strength development of C3S.

C4AF- Tetra-calcium Alumino ferrite- 9% no contribution for strength, more or less

neutral and having impact on color of cement. Tetra-calcium Alumino ferrite

hydrates rapidly but its contribution to strength still remains uncertain. Though

setting occurs in a few minutes after gauging, it does not show any sign of ‘flash set’

and some heat are also evolved.

30
Reaction in OPC when mixed with water:

In OPC there is only one primary reaction upon hydration.

C3S or C2S + H2O = C-S-H + Ca (OH)2

C-S-H is the desirable product which gives cement its strength and good properties.

On the contrary Ca(OH)2 is considered undesirable as it increases porosity of

concrete and propagates the process of reinforcement corrosion not contribute to

its strength and constitutes almost 25% by weight of cement, Hence undesirable.

Hence, the necessity to convert Ca OH)2 to products which help in contribution to

strength of cement. This is possible with pozzolonas like slag and fly ash

Gypsum is added to cement:

Gypsum prevents the flash setting- the setting occurs when C3A of cement

immediately reacts with water, giving no workable time at all. Gypsum when added

to cement reacts with C3A and produces Calcium Sulpho Aluminate which covers

cement particle to come in direct contact with water and finally this film of Calcium

Sulpho Aluminate breaks during the process of mixing and friction by the aggregates

and cements start hydration.

The extent of gypsum added is 3 to 4% by weight of cement and gypsum overdosing

may cause failure in cement in expansion criteria.

31
The durability of cement concrete is defined as its ability to resist weathering action,

chemical attack, abrasion or any other process of deterioration. Durable concrete

will retain its original form, quality and serviceability.

Fly ash:

Fly ash is a by product of the combustion of pulverised coal in thermal power plants

and exhibits pozzolanic activity. It is removed by the dust collection system as a fine

particulate residue from the combustion gases before they are discharged into the

atmosphere. The particles are spherical, ranging in diameter from less than 1 to

more than 150 m, the majority being less than 45 m

Slag:

Blast furnace slag is a by-product from the manufacturing of iron and has latent

hydraulic properties. When properly activated, either by mixing with Portland

cement or by the addition of alkaline activators, blast furnace slag develops

mechanical strength. The slag consists primarily of silica and alumina (from the iron

ores), combined with calcium and magnesium oxides.

The efficiency of slag as a hydraulic material depends on how the molten mass is

cooled and how long this cooling process takes.

32
Advantages in Blended Cement:

The calcium hydroxide formed as a result of primary reaction reacts with the

reactive silica present in slag or fly ash in presence of water to form calcium silicate

hydrate(C-S-H)

Ca (OH)2 + Reactive silica of fly ash / slag Si02 + H20 -> C-S-H + H2O

In India PPC is manufactured by inter grinding clinker, gypsum and fly ash (15 to

35%) which conforms to IS 1489, Part- I, 1991. The slag addition is permitted from

25% to 70% which conforms to IS 455, 1989.

Hydration of cement

Most of the reactions occurring during the hydration of cement are exothermic in

nature (heat is generated). This heat is called heat of hydration. It is desirable to

know the heat producing capacity of cement in order to choose the most suitable

cement.

When water is added to cement, the paste is formed due to chemical reaction, which

hardens into rock like mass over a period of time. Compounds like C 3S and C2S react

in the presence of moisture and fully hydrated reaction can be expressed as

2C3S+6H->C3S2H3+3Ca(OH)2

2C2S+4H->C3S2H3+Ca(OH)2

C3S2H3 (Calcium Silicate Hydrate) becomes a hard mass over a period of time and

normally called as C-S-H gel. While C3S contributes to most of the strength

development during the first two weeks, C 2S influences gain of strength after two

weeks.
33
1.2.5 TYPES OF CEMENT

There are different types of cement based on different compositions according to

specific end uses, namely Ordinary Portland Cement, Portland Pozolona Cement,

Portland Blast Furnace Slag Cement, White Cement and Specialized Cement. The

basic difference lies in the percentage of clinker used.

Ordinary Portland cement:

Popularly known as gray cement, it has 95% clinker and 5% of gypsum and other

materials. It accounts for 70% of the total consumption. White cement is a variation

of OPC and is used for decorative purposes like rendering of walls, flooring etc. It

contains a very low proportion of iron oxide.

Portland Pozzolona Cement (PPC):

It has 80% clinker, 15% pozzolona and 5% gypsum and accounts for 18% of the

total cement consumption. Pozzolona has siliceous and aluminous materials that do

not possess cementing properties but develop these properties in the presence of

water. It is cheaply manufactured because it uses fly ash/burnt clay/coal waste as

the main ingredient. It has a lower heat of hydration, which helps in preventing

cracks where large volumes are being cast.

Portland Slag Cement:

It consists of 45% clinker, 50% blast furnace slag and 5% gypsum and accounts for

10% of the total cement consumed. It has a heat of hydration even lower than PPC

and is generally used in construction of dams and similar massive constructions.

34
Specialized Cement

Oil Well Cement:

It 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

waterproofing properties.

High alumina cement:

The raw materials are lime stone and Bauxite, fused at 1550C to form clinker. The

clinker is pulverized to fineness of 300sq.m / kg. High Alumina Cement is heat

resistant, hence used for manufacturing refractory bricks.

Air entraining cement:

Vinsol resin or vegetable fats and oils and fatty acid are ground with ordinary

cement. These materials have the property to entrain air in the form of fine tiny air

bubbles in concrete. Properties: Minute voids are formed while setting of cement

which increases resistance against freezing and scaling action of salts. Air

entrainment improves workability and water cement ratio can be reduced which in

turn reduce shrinkage.

35
Rapid hardening cement:

It is made by adding two percent of calcium chloride. Since it is deliquescent, it is

stored under dry condition and should be consumed within a month of its dispatch

from the factory. It is suitable for cold weather.

Railway sleeper grade cement:

Type of OPC with higher fineness (minimum 370sq.m/kg) and high C3S content to

obtain 7 days cement strength as 37.5MPa.

White cement:

Type of OPC where petroleum fuel is used instead of coal during the process

of clinkerisation. To maintain the whiteness the iron oxide level in the cement

is maintained as less than 0.07%.

Low heat cement:

Type of OPC where C3A & C3S brought down considerably so as not raise the

heat of hydration in 7 and 28 days, above 65 calories per gram and 75 calories

per gram respectively and generally used in mass concreting structures.

Sulphate resisting cement:

Type of OPC where C3A < 5% and 2 C3A + C4AF <25%, widely used for marine

structures, where subsoil water is infested with sulphate salts.

36
Portland silica fumes cement. Addition of silica fume can yield exceptionally high

strengths, and cements containing 5–20% silica fume are occasionally produced.

However, silica fume is more usually added to Portland cement at the concrete

mixer.

Masonry cements are used for preparing bricklaying mortars and stuccos, and

must not be used in concrete. They are usually complex proprietary formulations

containing Portland clinker and a number of other ingredients that may include

limestone, hydrated lime, air-entrainer, retarders, water-proofers and coloring

agents. They are formulated to yield workable mortars that allow rapid and

consistent masonry work. Subtle variations of Masonry cement in the US are Plastic

Cements and Stucco Cements. These are designed to produce controlled bond with

masonry blocks.

Expansive cements contain, in addition to Portland clinker, expansive clinkers

(usually sulfoaluminate clinkers), and are designed to offset the effects of drying

shrinkage that is normally encountered with hydraulic cements. This allows large

floor slabs (up to 60 m square) to be prepared without contraction joints.

Colored cements are used for decorative purposes. In some standards, the addition

of pigments to produce "colored Portland cement" is allowed. In other standards

(e.g. ASTM), pigments are not allowed constituents of Portland cement, and colored

cements are sold as "blended hydraulic cements".

37
Very finely ground cements are made from mixtures of cement with sand or with

slag or other pozzolan type minerals that are extremely finely ground together. Such

cements can have the same physical characteristics as normal cement but with 50%

less cement particularly due to their increased surface area for the chemical

reaction. Even with intensive grinding they can use up to 50% less energy to

fabricate than ordinary Portland cements.

Pozzolan-lime cements. Mixtures of ground pozzolana and lime are the cements

used by the Romans, and can be found in Roman structures still standing (e.g. the

Pantheon in Rome). They develop strength slowly, but their ultimate strength can be

very high. The hydration products that produce strength are essentially the same as

those produced by Portland cement.

Geopolymer cements are made from mixtures of water-soluble alkali metal

silicates and aluminosilicate mineral powders such as fly ash and metakaolin.

Curing (setting)

Cement sets or cures when mixed with water which causes a series of hydration

chemical reactions. The constituents slowly hydrate and crystallize; the interlocking

of the crystals gives cement its strength. Maintaining a high moisture content in

cement during curing increases both the speed of curing, and its final strength.

Gypsum is often added to Portland cement to prevent early hardening or "flash

setting", allowing a longer working time. The time it takes for cement to cure varies

depending on the mixture and environmental conditions; initial hardening can occur
38
in as little as twenty minutes, while full cure can take over a month. Cement typically

cures to the extent that it can be put into service within 24 hours to a week.

Curing is one of the most important steps in concrete construction, because proper

curing greatly increases concrete strength and durability. Concrete hardens as a

result of hydration: the chemical reaction between cement and water. However,

hydration occurs only in the presence of water and if the concrete’s temperature

stays within a suitable range. During the curing period-from, five to seven days after

placement for conventional concrete, the concrete surface needs to be kept moist to

permit the hydration process. New concrete can be wet with soaking hoses,

sprinklers or covered with wet burlap, or can be coated with commercially available

curing compounds, which seal in moisture.

39
1.2.6 DIFFERENT TEST ON CEMENT:

The usual tests carried out for cement are for chemical and physical requirements.

They are given in relevant Indian Standards. IS 4031 and IS 4032. The chemical

standards give permissible limits for insoluble residue, loss of ignition and other

compounds and impurities like magnesium oxide, sulphates etc. The physical

requirements are for fineness, soundness, setting time and compressive strength.

Fineness of cement:

The degree of fineness is the measure of mean size of the grain in it. There are three

methods for testing fineness:

- The sieve method – using 90micron(9No) sieve ( measure grain size)

- The sedimentation method - Wagner tubiditer method( measure surface area)

- Blaine Air Permeameter ( measure surface area)

Report the value of R, to the nearest 0.1 percent, as the residue on the 90µm sieve.

Since cement grains are finer than 90micron, the sieve analysis method does not

represent true mean size of cement grains. Also, the tiny cement grains tend to

conglomerate into lumps resulting in distortion in the final grains size distribution

curves. Considering these demerits, fineness is expressed in terms of specific area.

Fineness of cement is sum total of surface area of all cement particles in one kg of

cement expressed in m2/kg.

40
Indian Standard specifies Fineness of OPC and PSC as not less than 225 Blaine,

but for PPC the fineness should not be less than 300 Blaine.

Importance of Fineness:

Higher fineness of cement increases the rate of hydration, decreases setting time

and increase early strength of cement.

Fineness increases the workability of cement with increased water demand,

due to high specific surface area of cement.

Fineness increases the bulk density of cement, by trapping more air.

Consistency

This is a test to estimate the quantity of mixing water to form a paste of normal

consistency defined as that percentage water requirement of the cement paste, the

viscosity of which will be such that the Vicat’s plunger penetrates up to a point 5 to 7

mm from the bottom of the Vicat mould.

Initial setting time (IST) - is the time elapsed between the moment water is

added to cement, to the time the paste starts losing its plasticity. During initial

setting time, cement paste can be molded as desired without any adverse effect. Place

the test block under the rod bearing the needle. Lower the needle gently in order to

make contact with the surface of the cement paste and release quickly, allowing it

to penetrate the test block. Repeat the procedure till the needle fails to pierce the

test block to a point 5.0 ± 0.5mm measured from the bottom of the mould. The time

41
period elapsing between the time, water is added to the cement and the time, the

needle fails to pierce the test block by 5.0 ± 0.5mm measured from the bottom of

the mould, is the initial setting time.

IST is not less than 30 min.

Importance of IST

During IST, mixing of mortar /concrete, transportation, placing, compaction and

finishing operations should be completed. After which it should not be disturbed.

IST requirement in hot climate is high.

IST can be prolonged by increasing percentage of gypsum in cement or vice

versa. The dose of gypsum basically depends upon C3A and SO3 contents in clinker.

Final setting time (FST) - The time elapsed between the moment water is added to

cement, and the time when the paste completely loses it plasticity and has attained

sufficient firmness to resist certain pressure.

Compressive strength of cement

There is no provision of grade for Blended Cements (like PSC and PPC) by Bureau of

Indian Standard (BIS), improved the quality of blended cement far beyond OPC 53

grade.

42
Soundness of cement:

Soundness is the measure of dimensional stability of the hardened cement mass.

Cement having excess free lime, magnesia or calcium sulphate will cause expansion

in hardened mass at a later date and cause unsoundness.

As per Indian Standard, Soundness is measured by two methods:

- Le-Chatelier Test conducted in laboratory condition

- Autoclave Test conducted under accelerated temperature and pressure

To control soundness, the free lime in cement should be within 3%. Lower the value

of free lime / magnesia or Calcium Sulphate, better is the quality of cement on free

lime.

Unsoundness causes cracking of concrete at a later date.

CHEMICAL PROPERTIES OF CEMENT

Los on Ignition (LOI)

LOI is expressed in terms of percentage of cement by mass, indicates the

association of moisture, organic materials and free carbonate content in the cement

thereby indicate the freshness of cement mass. To determine LOI, 3 to 4gms of

cement sample is incinerated at 950oC for I hour, to drive out moisture, organic

materials and carbonate compound.

43
Lesser the LOI, better is the cement and the Indian Standard specifies IR for

different cements as follows :

As per Indian Standard, for OPCs, PSC and PPC LOI should be not more than 5%.

Insoluble residue (IR):

IR is expressed in terms of percentage by mass of cement, indicates the

presence of clay or non-cementitious material in the cement sample in the form

of residue (which is insoluble in acidic or alkaline base).

Lesser the IR, better is the cement and the Indian Standard specifies LOI for OPC as

not more than 3%, for PSC not more than 4% and for PPC not more than the % of fly

ash added.

Magnesia

Magnesium oxide comes from the limestone. It hydrates slowly over the years and

expands in concrete at later ages causing expansion and subsequent cracking in

the concrete mass. Higher percentages of Magnesia in cement will cause

unsoundness.

Lesser the value of Magnesia better is the quality of cement, from soundness stand

point.

As per Indian Standard, for OPCs Magnesia should be not more than 6%, for PSC

Magnesia should not be more than 8% and for PPC, Magnesia should not be more

than the 6%, by mass of cement.

Chloride is of particular importance, because it causes corrosion of reinforcement.

Lesser the value of chloride better is the quality of cement, to reduce reinforcement

corrosion.

As per India Standard, for OPC chloride should not be more than 0.05% for PSC and

PPC- chloride should not be more than 0.10%.

Sulphur/sulphate

Most soils and ground waters contain some sulphates in the form of calcium,

sodium, potassium and magnesium (CaSO4, Na2SO4, K2SO4, MgSO4). Sulphate

reacts with the cement paste and form expanding compound known as

“Ettringite”, which causes cracking of concrete. Lesser the value of Sulphate, better is

the quality of cement. As per Indian Standard, for OPCs Sulphur should be not more

than 3%, for PSC Sulphur should be not more than 1.5% and for PPC Sulphur should be

not more than 3%, by weight of cement.

Alkalies

Cements contain alkalies in the form of Na2O and K2O as minor components in

the minerals. Alkalies react with certain aggregates, which contain a reactive form of

silica, thus producing a gel which swells, generates pressure and cracks concrete.

This reaction is known as Alkali Silica Reaction (ASR) or Alkali Aggregate Reaction

(AAR).

45
Lesser the value of Alkalies, better is the quality of cement.

Indian Standards have limited the alkali content to a maximum of 0.6 percent in

OPC, 0.9 percent in Portland Slag Cement, by weight of cement.

Lime saturation Factor (LSF): applies for OPC only

An important measure for OPCs, to know whether the lime content of cement is

sufficient for combining with Silica, Alumina and Iron Oxide. Excess or deficiency of

lime may lead to free lime in cement or lower strength due to inadequacy of lime.

Higher value of LSF indicates higher C3S content and lower value indicates lower C2S

content. 0.66 is lower limit and 1.06 is higher limit of LSF. Ideally, it should be around

0.9 to 0.92. At 0.66, cement will have 100% C2S (contributes to later strength) and

at 1.06 it will have 100% C3S (contributes to early strength)

A few field tests can be conducted at the site itself for ascertaining the quality of

cement as mentioned below:

Check at random that the packing bags are fresh and that the bags are machine

stitched. Check that the bag displays Indian Standards mark and number to which it

conforms. Check that the colour of cement is uniform. Open the bag and take a good

look at cement, there should be no lumps. Check the manufacturing week and the

year on the bag. Check for setting. Take some quantity of cement, make it to a paste,

place it on a plate and give it a square shape. Immerse the same slowly in to a bucket

of water. Check that it has not lost shape and that it hardens after 24hrs

46
1.2.7 MAJOR CONCERNS IN CEMENT INDUSTRY

From exploratory survey it is found that the following product features which a

company has to take care:

Price

The customer always looks for reasonable price but the pricing environment may

remain challenging and with the impact of surplus capacity, margins may continue

to remain under pressure. Important factors that could make a difference to the

Company's operations include demand supply conditions, finished goods prices,

feed stock availability and prices, cyclical demand and pricing in the company's

principal markets, changes in Government regulations, tax regimes, economic

developments within India and the countries within which the Company conducts

business and other factors such as litigation and labour negotiations. Sales volume

is dependent primarily on the dealer network as availability and reach are

considered to be the main issue. Additional capacities introduced in the recent

past have intensified supplies, and with demand not picking up as expected, the

degree of competition has increased.

Pricing has to reflect proper values in the eyes of customer. Price form an integral

part of the product. Price can affect demand and has an inverse relationship with it

in general. Very high price can turn away the customers and on the other hand a

low price may turn away customers since the customer feels that the low price is

47
that product is of inferior quality. Thus to standardize price is not a easy task sine

there is a fluctuation in government regulations, material cost etc.

There are some variables which can influence price like supply and demand, cost,

elasticity, market share, exchange rate, tariff etc.

Pricing can be strategic and tactical tools that can be used by a firm to control

market.

Good reputation of the brand through word of mouth

It is always a challenge for a cement company to maintain a good reputation in all

respect.

Freshness

Storage of Cement is one of the major concerns for maintaining freshness of cement

after production. Portland cement is kept in sacks of 0.035m 3(50Kg) capacity for

local use. Maximum 10–12 bags should be stacked one over the other.

The primary concern when storing Portland cement is to prevent exposure to

moisture. Cement stored in damp air or moisture sets slower and has less strength.

Bagged cement stored on a job site should be stacked closely together on pallets to

reduce air circulation and to raise the cement above any moisture sources; it should

also be covered with tarpaulins or other waterproof covers to protect from

moisture.

If possible, cement should be stored inside a structure to further reduce the

48
potential of exposure to moisture, but should never be placed directly next to an

exterior wall. The relative humidity within the structure should be reduced as much

as possible.

So if the cement is stored almost for more than 90 days than it become unsuitable

for important construction work as well as it increases the warehouse stocking cost.

From both company and customer point of view maintaining the freshness of

cement is a challenging task.

Fineness of cement

Fineness of cement is sum total of surface area of all cement particles in one kg of

cement expressed in m2/kg.

Finer cement particles imply more particles in unit weight. This enhances the

reaction rate, which in turn will result in faster gain of strength at earlier stages.

Fineness increases the workability of cement with increased water demand, due to

high specific surface area of cement. Fineness increases the bulk density of cement,

by trapping more air.

So here it indicates that more is the fineness more is the rate of hydration so it

results in quick setting of cement and in general customer want quick setting of

cement. Indian Standard specifies fineness of OPC and PSC as not less than 225

49
Blaine, but for PPC the fineness should not be less than 300 Blaine. Too much

fineness is not good for concreting works and results in development of cracks

Adulteration in cement

It is one of major concern since by extra hooking in cement bags it allows easy

pilferage to takes place and even duplicity in cement bags takes place.

Shelf life of cement

Cement is a hygroscopic material, meaning that in presence of moisture it

undergoes chemical reaction termed as hydration. Therefore cement remains in

good condition as long as it does not come in contact with moisture.

Cement tends to absorb moisture and as soon as it comes in contact with water it

start it chemical reaction. Cement has to be stored in such a manner that it does not

come in contact with water or moisture.

Even cement loses strength as it ages, in general approximate reduction in strength

with ageing as mentioned below:

Loss in strength in

3 month- 5 to 10%

6 months – 20-30%

12 months- 30-40%

50
BIS prescribes that cement should be used within 90 days of its production. In case

it is used at a later date then it should be tested before use.

Strength consideration

Sometimes in construction work where it is not supervised by professional engineer

there often due to poor workmanship and due to faulty construction practices

desired strength is not achieved and straight away claim comes directly on cement

and not on other building material.

Colour of cement:

It is found that customer want consistent color of cement in every batch of cement.

But usually company faces a challenge to maintain same color in all batches since

raw material chemical composition changes in every bench it goes down which is

generally done through surface miners.

Packaging

Packaging is another integral part of a product. It serves both functional and

promotional purposes. It is found that good quality and attractive packaging is

always to customer, but cement is dispatch by rake to several districts of West

Bengal, where by manual handling of loading and unloading time packaging get

affected by hooking. So provide a better quality packing is always a challenge and a

concern for Cement Company.

51
Durabilty

Cement when used to make concrete after that the durability of the concrete

structures is taken into account. The durability of concrete structures can be defined

as their ability to sustain the serviceability or the life for which they were designed.

The widespread use of concrete in many Roman structures has ensured that many

of them have survived. The Baths of Caracalla is just one example of the longevity of

concrete, which allowed the Romans to build this and similar structures across their

Empire. Many Roman aqueducts and Roman bridges have masonry cladding to a

concrete core, a technique they used in structures such as the Pantheon, the dome of

which is concrete.

Basic to the concept of durability is a commitment to quality and its assurance.

With respect to concrete, quality assurance is a matter of testing and inspecting to

ensure the proper selection, proportioning, mixing, handling, placing, and curing of

the materials, as well as the appropriate design of the structure itself.

Concrete Structures may face problems during their service due to structural

failures which includes cracking, rusting of Bars, sulfate or chloride Attack and also

for segregation and leaching of lime.

These problems reduce the life of the structure. Unfortunately, these problems may

not manifest in the initial years. They may manifest themselves at a later date and

by the time and the effects may become visible. Then nothing can be done much,

except doing some repairs which may not cure the underlying problems fully.

52
Thus for civil structures, quality assurance is important than the quality control.

Quality assurance is preventing the problems in the first place by carefully choosing

the materials, men and methods and ensuring output quality. Quality Control, on the

other hand, checks the output quality with respect to the planned one and decides if

the construction is alright or not. Obviously, if we find that the quality control

detects failures in a constructed building, it is not possible break the structure and

builds again since cost is involved. Probably only thing left is to repair, but the

underlying problems may not be corrected fully. Hence, it is wise to focus on quality

assurance rather than quality control.

The practical challenge lies in assuring the quality.

Setting issues

The rate of setting normally depends on the nature of the cement. It could also be

due to extraneous factors not related to the cement. Ambient conditions also play an

important role. In hot weather, concrete sets faster, whereas in cold weather, setting

is delayed. Some salts, chemicals, clay etc., if inadvertently mixed with the sand,

aggregate and water could accelerate or delay the setting of concrete.

In general the customer wants that cement should have low setting time, but when

by manipulating the percentages of gypsum other composition percentage changes

which is a challenging task for a company to satisfy a customer in all features.

53
Consistency in performance across all season

In general it is found that during hot weather cement sets quickly but in monsoon or

winter season the delay of setting of cement takes place which a common customer

normally are not aware of it which in turn customer had a feeling that the cement is

not of consistent quality across all season which is also one of the issues

Curing time

Approx 14 lit of water is required to hydrate each bag of cement. Curing is done to

supply additional moisture to concrete and preventing loss of moisture from

concrete by sealing the surface. Curing can be done by several methods such as

water curing, steam curing, infra red radiation, electrical curing, chemical curing etc.

But some time due to lack of water resources at site or due to negligence if proper

curing is not done, that durability of structures get reduced which is also a major

concern for cement customers, so they want cement which require less curing time

and effort.

Crack reduction

Concrete is a mixture of cement, water, sand and gravel (stones, crushed rock). The

mixture eventually hardens into a stone-like material. Cement and water are the two

ingredients that chemically react; the gravel and sand give strength.

Concrete should not be confused with cement because the term cement refers only

54
to the dry powder substance used to bind the aggregate materials of concrete. Upon

the addition of water and/or additives the cement mixture is referred to as concrete.

Concrete, by nature, shrinks as it hardens. When concrete is placed on supporting

soil or around steel reinforcement, the concrete mass is prevented from shrinking.

This restraint creates internal forces exceeding the strength of concrete; cracks form

to relieve these forces.

Very narrow ‘hairline’ cracks are aesthetic in nature and do not indicate any

structural problem. Cracks that have movement, i.e. where one side of the crack

moves relative to the opposite side, it should be investigated.

Concrete, like all other materials, will slightly change in volume when it dries out. In

typical concrete, this change amounts to about 1/16" for 10ft (0.4cm in 3m).

Unexpected cracking of concrete is a frequent cause of complaints. Cracking can be

the result of one or a combination of factors, such as drying shrinkage, thermal

contraction, restraint (external or internal) to shortening, sub-grade settlement, and

applied loads.

Some of the cracks as mentioned below:

Crazing is a pattern of fine cracks that do not penetrate much below the surface and

are usually a cosmetic problem only. They are barely visible, except when the

concrete is drying after the surface has been wet.

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Plastic Shrinkage Cracking: When water evaporates from the surface of freshly

placed concrete faster than it is replaced by bleed water, the surface concrete

shrinks. Due to the restraint provided by the concrete below the drying surface

layer, tensile stresses develop in the weak, stiffening plastic concrete, resulting in

shallow cracks of varying depth. These cracks are often fairly wide at the

surface.

Drying Shrinkage: Because almost all concrete is mixed with more water than is

needed to hydrate the cement, much of the remaining water evaporates, causing the

concrete to shrink. Restraint to shrinkage, provided by the sub-grade,

reinforcement, or another part of the structure, causes tensile stresses to develop in

the hardened concrete. Restraint to drying shrinkage is the most common cause of

concrete cracking. In many applications, drying shrinkage cracking is inevitable.

Therefore, contraction (control) joints are placed in concrete to predetermine the

location of drying shrinkage cracks.

D-cracking is a form of freeze-thaw deterioration that has been observed in some

pavements after three or more years of service. Due to the natural accumulation of

water in the base and sub-base of pavements, the aggregate may eventually become

saturated. Then with freezing and thawing cycles, cracking of the concrete starts in

the saturated aggregate at the bottom of the slab and progresses upward until it

reaches the wearing surface. D-cracking usually starts near pavement joints.

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Alkali-aggregate reaction: Alkali-aggregate reactivity is a type of concrete

deterioration that occurs when the active mineral constituents of some aggregates

react with the alkali hydroxides in the concrete. Alkali-aggregate reactivity occurs in

two forms—alkali-silica reaction and alkali-carbonate reaction.

Indications of the presence of alkali-aggregate reactivity may be a network of cracks,

closed or spalling joints, or displacement of different portions of a structure.

Thermal cracks: Temperature rise (especially significant in mass concrete) results

from the heat of hydration of cementitious materials. As the interior concrete

increases in temperature and expands, the surface concrete may be cooling and

contracting. This causes tensile stresses that may result in thermal cracks at the

surface if the temperature differential between the surface and center is too great.

The width and depth of cracks depends upon the temperature differential, physical

properties of the concrete, and the reinforcing steel.

Loss of support beneath concrete structures, usually caused by settling or washout

of soils and sub-base materials, can cause a variety of problems in concrete

structures, from cracking and performance problems to structural failure. Loss of

support can also occur during construction due to inadequate formwork support or

premature removal of forms.

Corrosion: Corrosion of reinforcing steel and other embedded metals is one of the

leading causes of deterioration of concrete. When steel corrodes, the resulting rust

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occupies a greater volume than steel. The expansion creates tensile stresses in the

concrete, which can eventually cause cracking and spalling.

Cracking can be significantly reduced when the causes are taken into account and

preventative steps are utilized. But customers want cement of such quality where

less-crack occurs after construction.

Sales and support services

Customer wants quick, efficient sales and support services and to be maintained

consistently which is always a challenge for company. So there is a need to what are

important services which customer generally looks for and find a effective and

efficient ways of resolving it.

Issue of quality in services is an issue of survival and competitive advantage, and the

importance of maintaining the quality in services is as mentioned below:

- Lower cost: If higher quality of services is provided which imply less mistake

for any repeated tasks, service recovery or refund to disgruntled customers.

- Immune or less vulnerable to price war: High quality sales and support

services have an additional differentiation attribute and can easily avoid the

service gap, in turn can they can have a price premium as they offer more

benefits than the competitors.

- Customer loyalty: Service quality ensures customer satisfaction that drives

customer loyalty and enhanced profits.

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 - Positive word-of-mouth: Loyal customers tend to contribute to positive

word-of-mouth publicity which widens the customer base with incurring

lower cost on marketing activities.

- Higher ROI: The distribution chain will have a high quality services which

will in turn create higher profitability.

- Loyal employees: There will be linear relationship between loyal customers

and happy employees. Automatically employees will have a sense of

belonging and proud for the firm they are working and which will help in

further delivering high quality services.

Other issues such as Safety issues

Bags of cement routinely have health and safety warnings printed on them because

not only is cement highly alkaline, but the setting process is exothermic. As a result,

wet cement is strongly caustic and can easily cause severe skin burns if not

promptly washed off with water. Similarly, dry cement powder in contact with

mucous membranes can cause severe eye or respiratory irritation. Some ingredients

can be specifically allergenic and may cause allergic dermatitis. Reducing agents are

sometimes added to cement to prevent the formation of carcinogenic chromate in

cement. For this only option left is that cement users should wear protective

clothing.

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1.3 PROBLEM DISCUSSION AND PURPOSE

In a general phenomenon that buyers in the same market seek product for broadly

the same function, but different buyers have different evaluative criteria about

which constitute the right choice of performing the function; as a result, different

offerings will attract different buyers.

The market consists of a more or less homogeneous group having buyers who look

for the same offerings. In other words market segmentation may be defined as the

division of the market into groups having similar wants. Such wants, however, must

be interpreted very broadly. Segment may differ also in their needs for information

and reassurance, technical support, service, promotion, distribution and other non-

product benefits that are part of their purchases.

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1.4 OBJECTIVE OF THIS RESEARCH

The study attempts to cover the following areas:

- To find the basic cement purchase behaviour process across various

customer segments.

- To explore the cement product features and services that a customer looks

for.

- Finally, to factorize various cement product features and services provided

before and after purchase as perceived by various customer segments. Also

based on those factors to suggest suitable measures to improve the rate of

penetration to various customer segments through specific promotion

campaigns which will help in offering differentiated product.

To summarize the effort, the first two objectives involve exploring the structural

framework and reviewing the literature related to cement purchase process and

cement product features/services. The third objective involves research design, data

analysis and major interpretation of the results from a survey questionnaire

administered to the respondents. Finally, the analysis of the research findings, the

marketing implications and inferences and limitations of the study are presented

and general conclusions are drawn.

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1.5 RESEARCH QUESTION

What are the key determinants which play a key role in customer satisfaction? What

are the needs and services expected by customers before and after purchase which

will help in offering differentiated product.

1.6 ASSUMPTIONS OF THIS STUDY

The study is focused on a systematic sample randomly selected from a list of

customers in the West Bengal market.

This study helps us find out the expectations of the multi-branded dealers.

The study focuses on the product and its service quality standard as per customers

view.

The data collection is carried out in various districts of West Bengal.

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1.7 THESIS STRUCTURE

The thesis has been structured in six main chapters. Other than the current chapter1

i.e. Introduction, the other chapters deal with the following:

Chapter 2- Literature review: This chapter presents the theories related to

marketing and other studies related to research questions.

Chapter 3- Research methodology: This chapter describes the methodology used

when obtaining the data needed for this thesis.

Chapter 4- Customer buying behaviour process: This chapter describes the impact

of external influence in customer buying behavior process.

Chapter 5- Customer satisfaction: This chapter identifies product features and

services needed which contributes to customer satisfaction. This chapter presents

the data collected and an analysis thereof.

Chapter 6- Findings, recommendations and conclusions: This chapter will present

the conclusions and implication based on findings.

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