PRJ PUBLICATION PRJ Publication, CUSTOMER PREFERENCE AND CONSUMPTION OF VARIOUS GRADES OF CEMENT IN CHENNAI

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1 JMRD Journal of Management Research and and Development (JMRD), (JMRD), ISSN X (Print) ISSN (Online), ISSN 2248 Volume 937X (Print) 1, Number 1, January - April (2011) ISSN (Online), Volume 1, Number 1 January - April (2011), pp PRJ PUBLICATION PRJ Publication, CUSTOMER PREFERENCE AND CONSUMPTION OF VARIOUS GRADES OF CEMENT IN CHENNAI G.Frederic Edmond 1, Research Scholar, Sathyabama University, Chennai Dr. S. SheelaRani 2, Supervisor, Sathyabama University, Chennai ABSTRACT Growing demand of housing units, infrastructure developments, construction of new bridges and development of IT parks accelerates cement demand in Chennai. In addition, Government spending on housing units, proposed financial city, Outer ring road, Metros and airport expansion further fuel the cement demand in Chennai. Different varieties of cements are manufactured for different applications. Types of cement generally consumed in Chennai are ordinary Portland cement, Portland Puzzolana cement and Sulphate resistance cement. The current study is aimed to analyze of different types of cement consumption in Chennai and importance are given for factors influencing the sales of a particular type of cement. The current study is being made with a sample size of 50 {questionnaire are given to cement dealers, masons, consumers and civil engineers]. The results of the study were also interpreted from the data s got from CMA, journals, paper article, cement industrial magazines. The choices of the type of cement in various segments were analyzed. The study showed more consumption of PPC in comparison with the other types of cement. Pricing, more availability in the market, easy workability and raw materials availability for production are some of the factors that increases PPC consumption. OPC types are preferred for fast setting processes and also for increased early strength requirements. SRC is preferred in coastal areas. INTRODUCTION Cement is a binder, a substance which sets and hardens independently, and can bind other materials together. Cement is activated by water and when mixed with gravel and sand, forms concrete. The most important use of cement is the production of mortar and concrete- the bonding of natural or artificial aggregates to form a strong building material which is durable in the face of normal environmental effects. Grades of cement There are certain varieties of cement that finds a good demand in the market.. Ordinary Portland cement (OPC): Also referred to as grey cement or OPC, it is of much use in ordinary concrete construction. In the production of this type of cement in India, 1 Asst General Manager- Marketing 2 Asst Professor, Management Studies, New College, Chennai, 7

2 Iron (Fe2O3), Magnesium (MgO), Silica (SiO2), Alumina (AL2O3), and Sulphur trioxide (SO3) components are used. This cement is mainly used for fast setting and early removal of shutters. Portland Pozolona Cement (PPC): As it prevents cracks, it is useful in the casting work of huge volumes of concrete. The rate of hydration heat is lower in this cement type. Fly ash,( is available from Thermal Power Plants, which are processed and used in manufacturing of PPC) coal waste or burnt clay is used in the production of this category of cement. It can be availed at low cost in comparison to OPC. Sulphate Resisting Portland cement: This cement is beneficial in the areas where concrete has an exposure to seacoast or sea water or soil or ground water. Under any such instances, the concrete is vulnerable to sulphates attack in large amounts and can cause damage to the structure. Hence, by using this cement one can reduce the impact of damage to the structure. This cement has high demand in India. Portland Blast Furnace slag cement (PBFSC): The rate of hydration heat is found lower in this cement type in comparison to PPC. It is most useful in massive construction projects, for example - dams. Rapid Hardening Portland cement: The texture of this cement type is quite similar to that of OPC. But, it is bit more fine than OPC and possesses immense compressible strength, which makes casting work easy. Oil Well Cement: Made of iron, coke, limestone and iron scrap, Oil Well Cement is used in constructing or fixing oil wells. This is applied on both the off-shore and on-shore of the wells. White cement: It is a kind of Ordinary Portland Cement. The ingredients of this cement are inclusive of clinker, fuel oil and iron oxide. The content of iron oxide is maintained below 0.4% to secure whiteness. White cement is largely used to increase the aesthetic value of a construction. It is preferred for tiles and flooring works. This cement costs more than grey cement. METHODOLOGY Data collection Procedure Primary data was collected using the questionnaire.a survey was done with the respondents in their respective places. The respondents reference to each question was carefully noted in the questionnaire. Their perception and suggestions were carefully observed and interpreted. Sample Size: Size of the sample means the number of sampling units from the population for investigation. Here the sample size is fixed as 50 general consumers, 50 dealers, 50 masons and 50 Civil Engineers from the construction industry in Chennai City Data collection from consumers - Questionnaire The study relies to a great extent on primary data and to some extent on secondary data. Content of the questionnaire include knowledge of different varieties of cement, various factors influencing a particular cement types, factors enhancing the sales of a particular type of cement. Product knowledge about types of cement among the consumers was analyzed. 8

3 To have wider response, Chennai is being divided in to four areas geographically to have more clarity. The dealers are selected from different places in Chennai North : Thiruvottriyur, Ennore, Poneri and Madhavaram Central Chennai : Porur, Virugambakkam, Vadapalani and Saidapet. Chennai South : Thiruvanmiyur, Adayar, Palavakkam and Velacherry Chennai West : Tambaram, Pallavaram, chromepet and Pammal Data collection from other sources Relevant Data were also collected from CMA reports, paper article, and cement industrial magazines. FINDINGS AND OBSERVATION Table: 1, Manufactures and Types of cement which is predominantly available in Chennai Market (source CMA) Brand Manufacturers OPC PPC SLAG Coromandel Cement India cements Ltd Yes yes No Ramco Cement Madras Cements Ltd Yes Yes No Ultra Tech Cement Grasim Industries Yes Yes No Dalmia Cement Dalmia Cement Ltd Yes yes Yes Chettinad Cement Chettinad Cement Ltd Yes yes No Zuari Cement Zuari Cement Ltd Yes Yes No Penna cement Penna Cement Ltd Yes No Yes Maha Cement My Home Industries Yes yes No Table 2 Following results are tabulated from the answers given for questionnaires in each segment. A) General Consumer 12 24% No Knowledge 38 76% OPC cements 3 06% PPC cements 9 18% Slag cements 0 0 Any cement 38 76% Total % 9

4 Table 3 b) Masons 41 82% No Knowledge 09 18% OPC cements 15 30% PPC cements 26 52% Slag cements 0 00% Any cement 09 18% Total % Table 4 Civil Engineers: % No Knowledge 0 00% OPC cements 14 28% PPC cements 34 68% Slag cements 2 4% Any cement 0 0 TOTAL % 10

5 Table 5 Cement dealers 47 94% No Knowledge 03 06% OPC cements 12 24% PPC cements 28 56% Slag cements 2 4% Any cement 8 16% TOTAL Table 6 Tabular column showing the knowledge levels on the types of cement among the various segments of consumers Segment Having Knowledge % No Knowledge % Total Consumers Masons Civil Engineer Dealers Table 7 Tabular column showing the over all consumption of different types of cement in various segment of consumers Segment OPC PPC SLAG No idea about the variety Total Consumers Masons Civil Engineers Dealers Total

6 Table: 8 Segment and preference of types of cement: Segment Availability Price Quality Colour Total General Consumer Masons Civil Engineers Dealer Total FINDINGS AND OBSERVATIONS Study on Customer preference and consumption of various grades of cement is summarized as Table 1: shows the details of major brands and types available in Chennai. Table 2:From the general customers response, it is evident that around 24% of the respondent is having knowledge on different types of cements available and 76% of the customers are not having an idea about the different types of cement. 08% of the general consumers are preferred for OPC and 18% of the consumers are seen to use PPC cement. From the questionnaire 76% of the consumers are not having knowledge on the varieties of cement. Table 3: From mason response, it is seen that around 82% of the masons are having knowledge on different types of cement and 18% have no knowledge on the variety of cement. 30% of the consumers prefer OPC, 52% prefer PPC and 18% of them buy any cement that is available in the market. Table 4: From civil engineers response, it is understood that 100 % of the respondents are having knowledge on different types of cements and their utility in the market.28% of them give preference for OPC and 68% of the consumer are shows to use PPC cement.4% of the civil engineers are consuming slag for construction purpose. Table 5: it is evident that 94 % of the dealers are aware of the different types of cement.3 % of the dealers are not having knowledge on the variety of cement available. Table 6 : the over all review of the tabular column it evident that 75% of the customers are having knowledge on different types of cement and 25% of the respondents are not aware of different types and their utility. It is very alarming to note that among the general consumers it is found that only 24% of the respondents know about the different variety and 76% are not aware. Table 7: It is also clear that 97 respondent or 43.5% of the respondents are consuming PPC % of the respondents are consuming the cement without the variety they are using and consumption of slag is 2 % only. Table 8: it is clear that 63 respondents are purchasing cement for preference of price.opc is Rs 10 to 15 higher than PPC. 52 respondents have said that the quality is the main reason for choosing the cement and 35 respondents main factor is availability of cement, color etc. 12

7 CONCLUSION In summing up, the above project paper reveals the fact that PPC cement type is sold more in Chennai market. Next preference is OPC type, and then comes the slag cement. From the questionnaire it is understood that sales of the particular type of cement is influenced by the availability, easy workability, colour, pricing and dealers encouragement, and mostly not due to the awareness and basic utility of the type. So it is the duty of the cement manufacturers and dealers to create more awareness with general public for the consumption of different types of cements, on the bases of their utility and product value. Advertisements,Engineers meet, Masons meet, wall paintings etc., should be increased to update the knowledge of different types of cements in the changing environment, so as to improve the quality of the construction industry for a better nation development. REFERENCES 1. G C Bye,Thomas Telford publishing, page 2 -PORTLAND CEMENT, 2 Edition 2. Kumar das bas, CEMENT INDUSTRY OF INDIA of india published by S B Nangia, New delhi Ramswarup D Tiwari 2007 RAILWAY RATES IN RELATION TO TRADE AND INDSUTRY IN INDIA 4. Stewan E.Landsburg PRICE THEORY AND APPLICATIONS seventh edition, THOMSON SOUTHERN WESTERN 5. Business line june 18, Maharashtra Economic Development council, July 2010 issue page vidya 8. Cement manufactures association 9. Crisil July2010 issue 10. Philip Kotler-Marketting Management- Millenium Edition SA Chunawalla -Essential of Marketing Research 13

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