A Summer Training Report

On

End User Satisfaction on Heidelberg Cement India Ltd.

Submitted Towards partial fulfilment of

MASTER OF BUSINESS ADMINISTRATION

COLLEGE OF SCIENCE AND ENGINEERING , JHANSI

Submitted to:Mr. Vikas Chaurasiya Sr. Faculty Dept. of Business Admin. CSE, Jhansi
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Submitted by:Sanjay Singh Yadav M.B.A Final YEAR ROLL NO. 1014570049

STUDENTS DECLARATION
I hereby declare that the Project Report conducted on

End User Satisfaction on Heidelberg Cement India Ltd.

AT

Heidelberg Cement India Ltd.

Under the guidance of

Mr. Pavan Duggal

Submitted in Partial fulfilment of the requirements for the Degree of

MASTER OF BUSINESS ADMINISTRATION (MBA)

TO COLLEGE OF SCIENCE & ENGINEERING, JHANSI

This is my original work and the same has not been submitted for the award of any other Degree/Diploma/Fellowship or other similar titles or prizes.

Place:- Jhansi Date: ` 2|Page

( .) Sanjay Singh Yadav

ACKNOWLEDGEMENT
My sincere thanks go to Mr. Trilok Chandra Soni, K.S.B.L., Jhansi, for giving me an opportunity to do project and for extending his valuable time and guidance and patient support throughout my project.

I would also like to extend my sincere thanks to Mr. Trilok Chandra Soni, Dealar, for helping lot to know about my subject.

I would like to thank Mr hariom Gupta, Faculty of COLLEGE OF SCIENCE & ENGINEERING, Jhansi for the guidance he has given to me in the conduction of my project work.

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I would also like to extend my gratitude to my parents, friends for their consistent encouragement, suggestions and moral support.

(Jainendra Bahadur Singh)

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Declaration
I Jainendra Bahadur Singh, a student of S.R. GROUP OF INSTITUTION, JHANSI hereby declare that the project entitled A Study of Mutual fund with State Bank of India is the original work done by me and the information provided in the study is authentic to the best of my knowledge. This study report has not been submitted to any other institution or university for the award or any other degree.

This report is based on my personal opinion hence cannot be referred to legal purpose.

(Jainendra Bahadur Singh) Date: -

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INDEX

Executive Summary(2) Introduction (4) Objective..(8) Research Methodology..(9) Scope and Limitation of Study.(16) Company Profile(17) Product Profile...(29) Dealer Profile.(41) Data Analysis. (50) Finding(61) Recommendation...(63) Conclusion..(65) Bibliography (67) Annexure(70)

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EXECUTIVE SUMMARY

Heidelberg Cement India Limited is a subsidiary of Cementrum I. B.V.( a Company incorporated under the laws of The Netherlands, which is 100% controlled by Heidelberg Cement AG). "Heidelberg Cement Group", with its core products being cement, ready mixed concrete, aggregates and related activities, is one of the leading producers of building materials worldwide, and it employs around 46,000 people in more than 50 Countries. Heidelberg Cement India Limited is committed to supply high quality products and provide best possible services to its customers. Its emphasis is to continuously upgrade plant efficiency by employing modern and latest technologies, reduce costs and improve production. The survey involved gathering wide information about the company, its products, customer satisfaction and impact of various competitive firms on the company. From the information collected, various aspects were identified where the company needs to focus more to improve the efficiency of marketing team of Mahindra Automotives. The research was conducted through collection of primary and secondary data. Secondary data was collected through visiting various web sites, automobile magazines and other reliable sources. Primary data was collected through a well-framed questionnaire, of which later a detailed analysis was done using various statistical I.T. tools like MS Word and MS Excel. On the basis, the secondary data analysis and the extensive analysis of the primary data, interpretations were drawn for the questions and conclusion is drawn. Certain suggestions are also drawn from the analysis to help. Heidelberg Cement India Limited to increase its market share in Cement market.
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INTRODUCTION
Customer Satisfaction is the buzzword used by the business people for the success of organization in the present days. Due to the increases of heavy competition in every product line it become difficult for the companies to retain the customers for longer time. So retain the customer for longer time the marketer has to do only one things i.e. customer satisfaction .If customer is fully satisfied by the product it not only rub the organization successfully but also fetch many benefits for the company . They are less process sensitive and they remain customer for a longer period. They buy addition products overtimes as the company introduce related produce related products or improved, so customer satisfactions is gaining a lot of importance in the present day. Every company is conducting survey on customer satisfaction level on their products .To make the products up to the satisfaction level of customers. This project is also done to know the customers satisfaction on the BOLERO on behalf of Mahindra and Mahindra Automobiles. The impact of automobile industry on the rest of the economy has been so pervasive and momentous that is characterized as second industrial. It played a vital role in helping the nation to produce higher value good and services and in the enhancing their skills and impose tremendous demand for automobile. The decrease in the interest rate and easy available of cars loons from 2 to 3 years, lot of car manufacturers company facing cut throat competition in the fields of technology and price, So to gain the market share it is important for the institutes to satisfy its customers and to retain the reputation and its image. Customer Satisfaction Strategies Followed By M&M The different strategies followed by M&M consists of Customer relationship management, strategy to providing better facility to the owner, and strategy to provide better after sales service to customer. Customer Relationship Management CRM as a tool was used to create positive word-of-mouth, to monitor customer experiences and generate referrals. A series of CRM activities were implemented with regular direct
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communication, events and customer satisfaction surveys, Events, Festive offers, Rewards Program, etc.

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INTRODUCTION OF CEMENT INDUSTRY

Introduction Cement is a key infrastructure industry. It has been decontrolled from price and distribution on 1st March, 1989 and delicensed on 25th July, 1991. However, the performance of the industry and prices of cement are monitored regularly. The constraints faced by the industry are reviewed in the Infrastructure Coordination Committee meetings held in the Cabinet Secretariat under the Chairmanship of Secretary (Coordination). reviewed by the Cabinet Committee on Infrastructure. Its performance is also

Capacity and Production The cement industry comprises of 125 large cement plants with an installed capacity of 148.28 million tonnes and more than 300 mini cement plants with an estimated capacity of 11.10 million tonnes per annum. 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. The total installed capacity in the country as a whole is 159.38 million tonnes. Actual cement production in 2002-03 was 116.35 million tonnes as against a production of 106.90 million tonnes in 2001-02, registering a growth rate of 8.84%. Keeping in view the trend of growth of the industry in previous years, a production target of 126 million tonnes has been fixed for the year 2003-04. During the period April-June 2003, a production (provisional) was 31.30 million tonnes. The industry has achieved a growth rate of 4.86 per cent during this period. Exports Apart from meeting the entire domestic demand, the industry is also exporting cement and clinker. The export of cement during 2001-02 and 2003-04 was 5.14 million tonnes and 6.92 Major million tonnes respectively. Export during April-May, 2003 was 1.35 million tonnes. exporters were Gujarat Ambuja Cements Ltd. and L&T Ltd.
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Recommendations on Cement Industry For the development of the cement industry Working Group on Cement Industry was constituted by the Planning Commission for the formulation of X Five Year Plan. The Working Group has projected a growth rate of 10% for the cement industry during the plan period and has projected creation of additional capacity of 40-62 million tonnes mainly through expansion of existing plants. The Working Group has identified following thrust areas for improving demand for cement; (i) (ii) (iii) Further push to housing development programmes; Promotion of concrete Highways and roads; and Use of ready-mix concrete in large infrastructure projects.

Further, in order to improve global competitiveness of the Indian Cement Industry, the Department of Industrial Policy & Promotion commissioned a study on the global competitiveness of the Indian Industry through an organization of international repute, viz. KPMG Consultancy Pvt. Ltd. The report submitted by the organization has made several recommendations for making the Indian Cement Industry more competitive in the international market. The recommendations are under consideration. Technological change Cement industry has made tremendous strides in technological upgradation and assimilation of latest technology. At present ninety three per cent of the total capacity in the industry is based on modern and environment-friendly dry process technology and only seven per cent of the capacity is based on old wet and semi-dry process technology. There is tremendous scope for waste heat recovery in cement plants and thereby reduction in emission level. One project for co-generation of power utilizing waste heat in an Indian cement plant is being implemented with Japanese assistance under Green Aid Plan. substantially. The induction of advanced technology has helped the industry immensely to conserve energy and fuel and to save materials India is also producing different varieties 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
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Cement etc.

Production of these varieties of cement conform to the BIS Specifications. It is

worth mentioning that some cement plants have set up dedicated jetties for promoting bulk transportation and export.

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OBJECTIVES OF THE STUDY

The study has been under taken to analyze the customer satisfaction towards all variant of Mycem Cement in Baragaon Jhansi (U.P) with a special reference to the Hydelberg Cement, the other objectives are:
To gather information about customer satisfaction toward Mycem Cement

in the

geographic region of Jhansi.

To know the customer perception about features (Grade) Mycem Cement..

To know the customer satisfaction about the safety and comfort provided by Cement.

To provide suggestions, in improving the customer satisfaction and the company sales and profitability

To know the customer satisfaction towards the after sales service offers by the company.

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RESEARCH METHODOLOGY
Research Methodology
A research process consists of stages or steps that guide the project from its conception through the final analysis, recommendations and ultimate actions. The research process provides a systematic, planned approach to the research project and ensures that all aspects of the research project are consistent with each other. Research studies evolve through a series of steps, each representing the answer to a key question. INTRODUCTION This chapter aims to understand the research methodology establishing a framework of evaluation and revaluation of primary and secondary research. The techniques and concepts used during primary research in order to arrive at findings; which are also dealt with and lead to a logical deduction towards the analysis and results.

RESEARCH DESIGN I propose to first conduct a intensive secondary research to understand the full impact and implication of the industry, to review and critique the industry norms and reports, on which certain issues shall be selected, which I feel remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory research. This stage shall help me to restrict and select only the important question and issue, which inhabit growth and segmentation in the industry.

The various tasks that I have undertaken in the research design process are :

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Defining the information need Design the exploratory, descriptive and causal research.

RESEARCH PROCESS The research process has four distinct yet interrelated steps for research analysis It has a logical and hierarchical ordering: Determination of information research problem. Development of appropriate research design. Execution of research design. Communication of results. Each step is viewed as a separate process that includes a combination of task , step and specific procedure. The steps undertake are logical, objective, systematic, reliable, valid, impersonal and ongoing. EXPLORATORY RESEARCH The method I used for exploratory research was

Primary Data Secondary data

PRIMARY DATA New data gathered to help solve the problem at hand. As compared to secondary data which is previously gathered data. An example is information gathered by a questionnaire. Qualitative or quantitative data that are newly collected in the course of research, Consists of original information that comes from people and includes information gathered from surveys, focus groups, independent observations and test results. Data gathered by the researcher in the act of conducting research. This is contrasted to secondary data, which entails the use of data gathered by someone other than the researcher information that is obtained directly from first-hand sources by means of surveys, observation or experimentation.
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Primary data is basically collected by getting questionnaire filled by the respondents.

SECONDARY DATA Information that already exists somewhere, having been collected for another purpose. Sources include census reports, trade publications, and subscription services. There are two types of secondary data: internal and external secondary data. Information compiled inside or outside the organization for some purpose other than the current investigation Researching information, which has already been published? Market information compiled for purposes other than the current research effort; it can be internal data, such as existing sales-tracking information, or it can be research conducted by someone else, such as a market research company or the U.S. government. Secondary source of data used consists of books and websites My proposal is to first conduct a intensive secondary research to understand the full impact and implication of the industry, to review and critique the industry norms and reports, on which certain issues shall be selected, which I feel remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory research. DESCRIPTIVE RESEARCH STEPS in the descriptive research: Statement of the problem Identification of information needed to solve the problem
Selection or development of instruments for gathering the information

Identification of target population and determination of sampling Plan.

Design of procedure for information collection Collection of information

Analysis of information
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 Generalizations and/or predictions

DATA COLLECTION Data collection took place with the help of filling of questionnaires. The questionnaire method has come to the more widely used and economical means of data collection. The common factor in all varieties of the questionnaire method is this reliance on verbal responses to questions, written or oral. I found it essential to make sure the questionnaire was easy to read and understand to all spectrums of people in the sample. It was also important as researcher to respect the samples time and energy hence the questionnaire was designed in such a way, that its administration would not exceed 4-5 mins. These questionnaires were personally administered. The first hand information was collected by making the people fill the questionnaires. The primary data collected by directly interacting with the people. The respondents were contacted at shopping malls, markets, places that were near to showrooms of the consumer durable products etc. The data was collected by interacting with 200 respondents who filled the questionnaires and gave me the required necessary information. The respondents consisted of housewives, students, businessmen, professionals etc. the required information was collected by directly interacting with these respondents.

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DETERMINATION THE SAMPLE PLAN AND SAMPLE SIZE TARGET POPULATION It is a description of the characteristics of that group of people from whom a course is intended. It attempts to describe them as they are rather than as the describer would like them to be. Also called the audience the audience to be served by our project includes key demographic information (i.e.; age, sex etc.).The specific population intended as beneficiaries of a program. This will be either all or a subset of potential users, such as adolescents, women, rural residents, or the residents of a particular geographic area. Topic areas: Governance, Accountability and Evaluation, Operations Management and Leadership. A population to be reached through some action or intervention; may refer to groups with specific demographic or geographic characteristics. The group of people you are trying to reach with a particular strategy or activity. The target population is the population I want to make conclude an ideal situation; the sampling frames to matches the target population. A specific resource set that is the object or target of investigation. The audience defined in age, background, ability, and preferences, among other things, for which a given course of instruction is intended. I have selected the sample trough Simple random Sampling SAMPLE SIZE: This involves figuring out how many samples one need. The numbers of samples you need are affected by the following factors:
`

Project goals How you plan to analyze your data How variable your data are or are likely to be How precisely you want to measure change or trend The number of years over which you want to detect a trend
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How many times a year you will sample each point How much money and manpower you have

SAMPLE SIZE I have targeted 150people in the age group above 21 years for the purpose of the research. The target population influences the sample size. The target population represents the Delhi regions. . The people were from different professional backgrounds. The details of our sample are explained in chapter named primary research where the divisions are explained in demographics section. ERRORS IN THE STUDY Interviewer error There is interviewer bias in the questionnaire method. Open-ended questions can be biased by the interviewers views or probing, as interviewers are guiding the respondent while the questionnaire is being filled out. The attitudes the interviewer revels to the respondent during the interview can greatly affect their level of interest and willingness to answer openly. As interviewers, probing and clarifications maximize respondent understanding and yield complete answers, these advantages are offset by the problems of prestige seeking, social desirability and courtesy biases. Questionnaire error The questionnaire designing has to careful so that only required data is concisely reveled and there is no redundant data generated. The questions have to be worded carefully so that the questions are not loaded and does not lead to a bias in the respondents mind Respondent error The respondents selected to be interviewed were not always available and willing to co operate also in most cases the respondents were found to not have the knowledge, opinion, attitudes or

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facts required additionally uninformed response errors and response styles also led to survey error. Sampling error We have taken the sample size of 150, which cannot determine the buying behavior of the total population. The sample has been drawn from only National Capital Region. Research Design Research design is a conceptual structure within which research was conducted. A research design is the detailed blueprint used to guide a research study towards its objective. It is a series of advanced decision taken together comprising a master plan or a model for conducting the research in consonance with the research objectives. Research design is needed because it facilitates the smooth sailing of the various research operations, thereby making research as efficient as possible yielding maximum information with the minimum effort, time and money.

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Scope and the Limitation of the study

The scope of study is limited to the respondents are selected from in and around Jhansi,

U.P . The project is carried out for the period of 45 days only.

Measurement of customer satisfaction is complex subjects, which uses non-objectives method, which is not reliable.

The sample unit was also 150 respondents.

However, Cement Factory are located in other places i.e. locally and even in the

neighboring states. Only opinion of respondents of Jhansi Region was consider for finding out the opinions of respondents.

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COMPANY PROFILE

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COMPANY PROFILE

Who

we

are

In more than 40 countries across the world, the name HeidelbergCement stands for competency and quality. HeidelbergCement is the global market leader in aggregates and a prominent player in the fields of cement, concrete and other downstream activities, making it one of the worlds largest manufacturers of building materials. In 2010, Group turnover amounted to EUR 11.8 billion. The core activities of HeidelbergCement include the production and distribution of cement and aggregates, the two essential raw materials for concrete. We supplement our product range with downstream activities such as ready-mixed concrete, concrete products and concrete elements, as well as other related products and services. Around 53,400 employees in more than 2,500 locations make sure on a daily basis that our slogan for better building is brought to life. A company with a long tradition

HeidelbergCement has come a long way from the foundation of the first cement plant in Heidelberg in 1873 to one of the leading international building materials group it is today. The company was active in the South German region exclusively until the end of the 1960s. First steps into the international arena followed with the participation in the French cement company Vicat and the acquisition of Lehigh Cement in the USA in 1977. At the end of the 1980s, the political changes in the countries of Central and Eastern Europe offered new opportunities, and HeidelbergCement became the largest investor in the building materials industry of the region. In the 1990s, the international expansion accelerated. The acquisition of the leading Belgian and Scandinavian cement producers CBR and Scancem opened up new markets in Western and Northern Europe, as well as in Africa and Asia. The entrance into Indonesia followed in 2001 and again created a significant increase in capacity. Our objective Priority for growing markets was the driving force behind our engagements in China, India, Kazakhstan, Georgia, the Ukraine and Russia over the last several years. By making the biggest acquisition in the building materials industry the takeover of the building materials manufacturer Hanson in 2007 we have expanded and consolidated our position among the leading companies worldwide.
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Group

areas

With effect from the beginning of the 2010 financial year, HeidelbergCement has reorganised its reporting structure. It is now geographically divided into six Group areas:

Western and Northern Europe Eastern Europe-Central Asia North America Asia-Australia-Africa Asia-Pacific Group Services reorientation

Strategic

In order to safeguard our market position in the long term, we have readjusted our corporate strategy: Besides the traditional core business of cement, aggregates (sand, gravel and crushed rock) have become a second strategic pillar. The takeover of Hanson in 2007 was a logical consequence of this reorientation. This allowed HeidelbergCement to become a global player with a broad geographical positioning and a dual raw materials and product focus on cement and aggregates. Our strategy is clear and convincing: Concrete, the building material for which there is most demand worldwide, is by far our most important end product. Concrete is composed of approximately 75% aggregates and approximately 10% cement. With the takeover of Hanson, one of the leading aggregates companies worldwide, we are improving our position as a global, integrated supplier of building materials and are strengthening our raw material base for aggregates. Hanson has well positioned, very extensive raw material deposits in the important markets of North America, the United Kingdom and Australia.

We supplement our product range with downstream activities such as ready-mixed concrete, concrete pipes, precast concrete parts, asphalt and other related products and services, particularly in the industrialised countries with an advanced degree of vertical integration.

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HeidelbergCement is pursuing a clear dual external growth strategy: expansion of the cement business in growth markets and North America; and focus on aggregates and downstream activities in mature markets and North America.

Focus on quality and customer satisfaction HeidelbergCement develops, produces and distributes top-quality building materials for customers all over the world. We are where our customers are, and we place great value on close collaboration on a local level. We know that the success of our customers is also our success. Our aim is long-term customer loyalty based on the convincing quality of our products as well as our extensive range of services. Continuous innovation and improvement Our performance and the high quality of our products are based on the use of state-of-the-art technology and production procedures. Our aim is the manufacture of durable products that are easy to use and offer added value to our customers. To offer customised solutions to our clients, we continuously invest in the development and improvement of products in the area of cement, concrete and building materials. Our companies can rely on their own research departments as well as the experience and professional expertise of our subsidiary HeidelbergCement Technology Center, represented all over the world with its highly qualified professionals and branches in all Group areas. By transfer of knowledge, comparison and optimisation of performance as well as the introduction of so-called best practice solutions throughout the Group, innovations and new technologies can be implemented quickly, resulting in improved products and Our manufacturing foundation procedures to benefit our and customers across the world.

committed

qualified

employees

An excellent management team and committed, qualified employees are the foundation of our success. As a performance and result-orientated company, we place great value on the competence of our employees and management. This is why HeidelbergCement offers a wide range of possibilities for professional advancement and looks after occupational health and safety.
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Sustainability a pillar of our corporate strategy At HeidelbergCement, a high value is placed on sustainability a pillar of our corporate strategy. As we want to be among the worlds best within our industry in this area, we are committed to ecological, social and economic goals. In 2006, we supplemented the guidelines for responsible entrepreneurial activity with a Group-wide Code of Business Conduct. In our day-to-day-work, we apply the highest standards in quality, environmental protection and occupational safety. Responsibility for the environment HeidelbergCement takes its responsibility for the environment seriously. Environmental protection is a central part of our strategy of sustainability. In this regard, climate protection and conservation of resources are our predominant goals. HeidelbergCement is a member of the World Business Council for Sustainable Development (WBCSD) and has committed itself to sustainable cement production. We use natural resources responsibly and our goal is to lower the specific CO2 emission levels of 1990 by 15% by the year 2010. To reach this goal, production procedures are optimised continuously and the use of alternative raw materials and fuels is intensified. Social responsibility on a local level Social responsibility has a long tradition and is ranked highly at HeidelbergCement. We play an active role in the cities and communities where our production sites are located. We maintain an open dialogue with the neighbours, the local citizens and politicians and any other stakeholders. HeidelbergCement contributes to the economic development of these communities with its regional activities. The examples of our social commitment are as numerous as are the cultures and people at our locations. Our activities range from cultural and charity projects to the building of kindergartens, schools and hospitals. Our contribution to the setting up of public buildings and institutions for education and health, especially in developing countries, underlines our commitment to the promotion of public welfare.

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Areas & Countries

Western and Northern Europe Baltics, Benelux, Denmark, Germany, Norway, Sweden, United Kingdom

Eastern Europe - Central Asia Bosnia-Herzegovina, Croatia, Czech Republic, Georgia, Hungary, Kazakhstan, Poland, Romania, Russia, Slovak Republic, Ukraine

North America Canada, USA

Asia-Pacific Australia, Bangladesh, Brunei, China, India, Indonesia, Malaysia, Singapore

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Africa-Mediterranean Basin Israel, Spain, Turkey, United Arab Emirates Africa: Benin, Democratic Republic of the Congo, Gabon, Ghana, Liberia, Sierra Leone, Tanzania, Togo

Group Services Group Services comprises mainly the trading activities of the wholly-owned subsidiary HC Trading.

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Products

Cement Besides aggregates, cement is an essential component of the end product of concrete. Different applications require the use of various types of cement with a specific composition

Cement The word cement is based on the Latin word caementum (=rubblestone). The binder that is used in the production of concrete and mortar has the ability to harden even in water. Different applications require the use of various types of cement with a specific composition. The properties can also be varied through additives. Standard cements Specialty cements

White cements, trass cements Highly sulphate resisting Aquament and Portland cement for hydraulic engineering Anti-sulphate for sewage works construction Microcem, extremely fine cement for soil injection and masonry repair Depocrete and Procrete for waste dump sealing.

Masonry cement Specific binders

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Tailor-made ready-mixed cement products for geotechnology, environmental technology and road construction.

Aggregates Aggregates including sand, gravel and crushed stone constitute important components of concrete

Concrete Concrete, the compound formed out of binders, such as cement, and aggregates, such as sand and gravel, has become an integral component in modern architecture and construction engineering

Building products HeidelbergCement offers a comprehensive range of top-quality building materials that includes traditional materials as well as specific products for various applications Limestone and lime products Limestone aggregates, limestone sand, pulverised limestone, burnt limestone, white pulverised limestone and limestone hydrate Sand-lime bricks Sand-lime brick construction systems, solid, perforated, oversize (KS-Quadro) and facing sandlime bricks
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Environmental technology Specialty products and services for waste stabilisation, landfill construction and immobilisation of toxic compounds.

Sustainability Report HeidelbergCement is publishing a Group Sustainability Report for the fourth time. The report provides a summary of what we achieved in 2009 and 2010 and shows how the sustainability mindset has developed at our company. This report provides information on how HeidelbergCement is living up to its economic, ecological and social responsibility. It describes the key challenges that our company faces and explains the strategies we are pursuing in order to overcome these challenges. The Sustainability Report is targeted at our employees, as well as at investors, analysts, customers, contractors, politicians and NGOs. In 2009, we were in a difficult situation with an extremely unfavourable business climate. We drew the necessary consequences and placed our capital and financing structure on a completely new and solid foundation. Our business results for 2010, which have clearly developed in a positive direction, demonstrate that this reorientation was the right course. We regard this decision as another example of our commitment to sustainability. The business decisions we make today must reflect our sense of responsibility for the future if we wish to be successful in the long run. Thats why we regard sustainability as a management task and part of our corporate strategy. We are committed to efficiency, sustainable profitability, a clear focus on customers and profitable growth. This requires a responsible approach not only to the needs and interests of our employees, customers and business partners but also to potential conflicts of interest at our business locations. In line with our corporate philosophy, Think globally act locally, such an attitude implies a key task for our local managers: to minimise the effects of our business operations on the local environment and society and to act in our core areas of competence in
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ways that benefit society and generate business opportunities for our company. In the past two years we have continually made progress regarding the implementation of our sustainability strategy. Among other things, weve reduced our CO2 emissions, intensively used alternative fuels and promoted biodiversity in our quarries. Occupational safety continues to be an equally important priority for our company. Despite the progress weve made in recent years, we unfortunately experienced a total of 19 fatalities in 2010, including five employee deaths. This is unacceptable and explains why occupational safety is a key issue for us in 2011. Our targets for 2012 are clear: to halve the number of accidents compared to 2008 and reduce the number of deaths to zero. We will work hard to reach these goals, and we expect to be judged accordingly. This is the fourth time in our corporate history that we have submitted a sustainability report for the Group. The purpose of this report is to make our business activities transparent and binding so that all of our stakeholders can clearly see and understand the way in which we operate. Please feel free to get in touch with us. Your opinions will help us to stay on course as we endeavour to enhance sustainability at our company.

Chronicle
2009 February Guidelines biodiversity HeidelbergCement is the first company in its sector to introduce Group guidelines for improving biodiversity in its quarries, sand pits and gravel pits and protecting the environment. for the promotion of 2010 January Heidelberg Technology Center The Heidelberg Technology Center Global (HTC Global) is opened in Heidelberg. It is an internationally oriented centre of expertise with four focus areas: Research Engineering,
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&

Development, Geology and

Training & Benchmarking. June Tanzania: cement Green modernisation plant of a February Outstanding management HeidelbergCement countrys outstanding environmentally technologies, renaturation companies. Sustainability The Managing Sustainability Ambitions Board Ambitions 2020 2020 passes for the the IFC agreement signs an HeidelbergCement May methods plants in of Ukraine receive an award from the Ministry Environmental Protection for their environmental friendly ultramodern and the management. The award honours environmental

The HeidelbergCement subsidiary Tanzania Portland Cement Company (TPCC) reopens its cement plant, which has been modernised with environmentally friendly technology. The production capacity of the plant, which is located near Dar Es Salaam, has been more than doubled, to 1.4 million tonnes.

reduction of CO2 emissions at

HeidelbergCement Group, which defines the companys long-term goals in six key areas of sustainability activities as well as the means of monitoring and controlling these activities over the long term.

agreement with the International Finance Corporation (IFC) on the expansion The local of infrastructure in countries in sub-Saharan Africa. cement is to production improve capacity is also to be increased. Another goal environmental standards at the companys locations.

September
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UEPG sustainability award

The United brickyard A state-of-the-art brickyard officially begins production operations in Measham, Leicestershire. Sustainability was one of the considerations governing the design and construction of the plant. The fully automated facility is significantly more energy-efficient than its predecessors and generates less waste. Hungary: Municipal waste as fuel June Kingdom: Highly efficient

European

Aggregates subsidiaries,

Association (UEPG) presents two HeidelbergCement Hanson UK and NorStone AS, with an award for exemplary biodiversity management. In addition, Hanson UK receives the first prize for social commitment as a result of its occupational safety management.

The cement plant in Beremend has been modernised, and after a two-year construction period it resumes production. One focus of the investments was the improvement of environmental protection and energy efficiency through the greatly increased use of alternative fuels such as municipal waste. Sustainable waste management A new, ultramodern Recyfuel plant is commissioned in Belgium. At this facility, waste is processed under supervision to produce alternative fuels that exhibit a high calorific value and can be used by the cement industry. October Award for environmental protection The Citeurop plant of the HeidelbergCement subsidiary Indocement in Indonesia achieves first place in the PROPER Programme for its outstanding The environmental programme, protection which was activities. October Tree nursery promotes

sustainable

development

In a public-private partnership with GIZ, a German organisation that the promotes disused development of our abroad, a tree nursery is planted in quarry

instituted and implemented by the Indonesian

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Ministry of the Environment, encourages firms to improve their environmental management.

subsidiary TPCC near Dar es Salaam. The tree nursery will create jobs and help to reforest areas at risk over the long term.

Development partnership for biodiversity HeidelbergCement and the German

November Manifesto Efficiency in for Energy signs the the World

development aid organisation GIZ sign a contract to form a public-private partnership in Georgia. The aim of the partnership is to promote biodiversity in the companys quarries in the country.

Buildings

HeidelbergCement in Buildings of

Manifesto for Energy Efficiency Business Council for Sustainable Development. In doing so, it commits itself to improve the energy efficiency in its office buildings.

November Ultramodern dust filter system at the Slite plant The installation of a high-powered fabric filter at the cement plant in Slite, Sweden, drastically reduces dust emissions. This is the largest filter ever installed at a facility of the Group.

December The Wetzlar plant is closed down Low use of capacity and a growing need for investment and repairs lead to the decision to close down the plant in Wetzlar, Germany. In the future, plants other will HeidelbergCement

supply the market with cement.

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Company portrait HeidelbergCement is one of the worlds biggest producers of building materials. We currently operate in more than 40 countries. Our core business encompasses the production and distribution of cement and aggregates, the two essential raw materials for concrete production. Organisational structure and business activities Our core business encompasses the production and distribution of cement and aggregates, the two essential raw materials for concrete production.

Organisational structure and business activities HeidelbergCement is one of the worlds biggest producers of building materials. The companys core activities encompass the production and distribution of cement and aggregates, the two essential raw materials for concrete production. We supplement our product range with downstream activities such as the production of ready-mixed concrete, concrete products and concrete elements, as well as other related products and services. Cement and aggregates form the basis of our dual raw materials and growth strategy.

Our focus in relation to cement production activities is on growing markets, whereas in wellestablished markets we concentrate on expanding vertical integration and securing raw materials for aggregates. HeidelbergCement relies on an integrated management approach. Its success is based on a balance between local business responsibility, Group-wide standards and global leadership. HeidelbergCement revamped its organisational structure at the start of the 2010 business year. The key components of the organisation are now the five main geographic Group areas: Western and Northern Europe, Eastern Europe-Central Asia, North America, Asia-Pacific, and AfricaMediterranean Basin. These in turn are subdivided into three or four business lines in accordance with existing product and service units. We also have a sixth Group area Group Services in which our global trading activities are consolidated

Strategic partnerships and equity participations Our dual growth strategy focuses on micro-markets that stand out through rates of growth that are
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higher than those recorded in surrounding regions. In order to reduce risks and ensure better market access, our growth strategy also relies on strategic partnerships with local manufacturers in our target markets. We contribute our technical expertise to these partnerships and seek to acquire a majority interest in return. In those instances where HeidelbergCement obtains a majority participation and management control, it defines all standards and measures, including those related to sustainability management. Ownership structure For HeidelbergCement, business year 2009 was largely marked by the global economic crisis and the reorganisation of our financing structure following the Hanson acquisition in 2007. To this end, we successfully implemented a capital increase in autumn 2009, while simultaneously selling off old shares from the former majority shareholder, the Merckle group. This transaction attracted renowned international institutional investors that have now become HeidelbergCement shareholders. The level of free float has increased to just under 75%, which together with the higher trading volume resulted in HeidelbergCement being incorporated into the German DAX index of leading companies in June 2010.

BUSINESS TREND
Group turnover rose in 2010 reflecting the ongoing positive developments in our growth markets such as Asia and Africa, as well as the onset of a recovery in North America and parts of Europe.

Business trend Our Group turnover declined in 2009 by 21.6% to EUR 11.1 billion (2008: 14.2 billion) due to the effects of the global economic crisis, especially in the industrialised countries of North America and Europe. The crisis then bottomed out for the Group in 2010, when turnover rose once again in a manner that reflected the ongoing positive developments in our growth markets such as Asia and Africa, as well as the onset of a recovery in North America and parts of Europe. Total Group turnover increased by 5.8% in 2010 to EUR 11.8 billion.

Our earnings situation also improved in 2010. Along with favourable market developments, this positive result was due to the appreciation of key currencies against the euro, as well as
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successful

Group-wide

initiatives

to

reduce

costs

and

enhance

efficiency.

Capacity development Declining sales in 2009 led us to adjust capacity utilisation at all of our business lines worldwide. Such adjustments were particularly necessary in the USA, the UK and Spain, which were hard hit by the crisis on real estate markets. Despite the cost-cutting measures introduced during the economic crisis, we nonetheless continued to invest in cement production capacity in attractive growth markets in 2010, especially in Indonesia, the Democratic Republic of the Congo and Russia

BUSINESS LINES AND PRODUCT GROUPS

Our operations have been divided into four business lines in accordance with our most important products and product groups. Cement The cement business line manufactures and sells cement. The raw materials that are needed for producing cement (limestone and marl) are extracted from nearby quarries, where they are crushed before being transported to cement plants. The cement facilities then dry them, add aggregates and grind the mixture into raw meal. The cement clinker burned out of this is ground together with other additives into cement. Cement is used as a binder for the production of concrete and mortar. Different types of cement with specific compositions are used in line with the application in question. Properties can also be varied through the use of additives. HeidelbergCement manufactures and supplies all of the common types of cement: normal and special cements, binders for specific civil engineering applications, and cement for the construction chemicals industry. We also consider it important to continually improve the CO2 balance of the cement and concrete we sell. Lowering clinker proportions is the most effective way to minimise energy consumption and CO2 emissions and conserve natural resources. Thats why composite cement with lower clinker content is becoming an increasingly important product
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group for us. Cement is generally transported in bulk on trucks, rail vehicles or ships and transferred in terminals between shipping segments. A small proportion of cement is shipped to customers in bags. Aggregates The aggregates business line handles the quarrying, refinement and sale of aggregates. Aggregates can be divided into two categories crushed stone and grit, and sand and gravel. The stone material for crushed stone and grit is extracted in quarries by means of drilling and blasting, after which it is mechanically crushed to different particle sizes in crushers. The material for sand and gravel is found in currently existing or Ice Age river beds and is obtained through wet or dry mining processes. After being sieved and cleaned, the material is sorted in accordance with its particle size, after which it can be sold. Whereas crushed stone and grit is used for road construction and maintenance, sand and gravel are used to make concrete. Aggregates are transported by truck, rail or ship. Because aggregates are used around the world but many of them cannot be found everywhere, they are also traded on international markets.

Concrete and asphalt Our ready-mixed concrete and asphalt business activities are a key focus of our concrete-serviceother business line. Concrete is made up of a mixture of cement, gravel, sand and water. In this sense it is the finished product based on HeidelbergCements core activities: the production of cement and aggregates. Concrete is a very versatile building material. Its properties can be changed by altering the composition of the mixture used to make it, which means that it can fulfil the requirements posed by many different areas of application. Because it is a time-critical material, concrete is only transported across short distances directly to building sites, using ready-mix trucks. Asphalt is a mixture of aggregates and a binder that contains bitumen. Among other things, it is used to fortify
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road surfaces, as well as for hydraulic engineering applications. Asphalt is mixed in a hot state, transported to the location where it is needed at an optimal temperature and immediately processed on site. Building products Our building products include bricks and light blocks for use in residential construction. This business line also manufactures concrete pipes, precast concrete parts and concrete pavement tiles.

Key figures The key figures related to this chapter can be found here. Group profit and loss accounts (short form) 2008 EURm Turnover 14,187 2009 EURm 11,117 2010 EURm 11,762

Operating income before depreciation Amortisation and depreciation of intangibe assets and tangible fixed assets

2,946 -799

2,102 -785

2,239 -809

Operating income Additional ordinary result Result from participations Earnings before interest and taxes (EBIT) Financial result Profit/loss before tax from continuing operations
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2,147 -371 51 1,827 -829 998

1,317 -495 38 860 -875 -14

1,430 -102 6 1,334 -735 599

Group profit and loss accounts (short form)

Taxes on income Net income from continuing operations Net loss from discontinued operations Profit for the financial year Group share of profit

-327 671 1,249 1,920 1,808

190 176 -8 168 43

-60 539 -28 511 343

Group sales 2004 Cement and clinker (million tonnes) Aggregates (million tonnes) Asphalt (million tonnes) Ready-mixed concrete (million cubic metres) 19.5 21.8 24.9 65.2 69.5 2005 68.4 77.2 2006 79.7 85.8 2007 87.9 179.6 4.8 32.7 2008 89.0 299.5 12.1 44.4 2009 79.3 239.5 10.0 35.0 2010 78.4 239.7 9.1 35.0

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HISTORY
HeidelbergCement India Limited (MCL), a HeidelbergCement Group Company, was promoted in 1958 by a Karnataka based industrialist in technical and financial collaboration with Kaisers of USA as a Public Limited Company. The first one lac ton per annum dry process cement plant with an investment of Rs.220 lacs at Ammasandra Dist. Tumkur, Karnataka was commissioned in 1962. Immediately thereafter, an expansion was planned which doubled MCL's capacity to 2 lac tpa in 1966 at an investment of Rs.170 lacs Kaisers subsequently took control of the Company. Late Shri.G.D. Birla became the Chairman of the Company in 1966 and under his stewardship, the Company again doubled its capacity from 2 lac tpa to 4 lac tpa in 1968 at an investment of Rs.390 lacs MCL made steady progress and increased the capacity at Ammasandra to 6 Lac tpa with an investment of another Rs.230 lacs in 1978. MCL, to expand, looked for a location in the North which, was then facing acute cement shortage. Damoh in Madhya Pradesh was selected and a 5 lac tpa green-field cement plant was set up at an investment of Rs.2950 lacs, which commenced production in 1983. This was a state of art first 5 stage preheater based technology plant in the Country which helped in maximising thermal efficiency. Encouraged with its success MCL also modernised its Ammasandra unit at an investment of Rs.3600 lacs, which was successfully completed in January, 1989, and helped not only in increasing the efficiency but also reduced cost of production on account of savings in power and fuel consumption.

The Clinkerisation capacity at Damoh was further increased to 10 lac tpa by installing another state of art 6 stage preheater Kiln at an investment of Rs.8000 lacs, which was commissioned in 1989, which helped not only in improving the operational efficiency but also in reducing the coal consumption and enhanced productivity. A green field 5 lac tpa grinding unit was set up at Jhansi in Uttar Pradesh at an investment
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of Rs.5900 lacs, which commenced production in July 1989 to take advantage of the available fly ash from the nearby located Paricha Thermal Power Plant. Jhansi was considered an ideal location in view of the fact that Uttar Pradesh is one of the biggest cement consuming state with very little production capacity and even the available capacity then was only from the State Govt. owned cement plants. With this MCL achieved a total capacity of over 20 lac in 1989-90, with a presence both in Southern and Northern markets, which at that time only ACC enjoyed. Subsequently with upgradation and balancing at Damoh, the capacity increased to 23 lac tpa in 2004-05. Pursuant to the Share Subscription and Share Purchase Agreement and Escrow Agreement Cementrum I B.V.(subsidiary of HeidelbergCement AG) acquired Equity Shares from the S.K. Birla Group and its affiliates. In addition, further Equity Shares were acquired under the Open Offer giving Cementrum I B.V. 54.89% shareholding in HeidelbergCement India Limited.

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MISSION STATEMENT: To supply high quality products and provide best possible service to our customers.

To constantly upgrade the Plant efficiency by employing modern methods and latest

technology. To reduce costs and improve productivity. To supply products that cater continuously to the needs and expectations of our customers

in accordance with agreed schedule of delivery and International levels of quality. Our endeavour is to achieve complete customer satisfaction.

To achieve Customer Delight , it will be our effort to provide excellent quality cement,

backed by efficient services. Our products will deliver Value for Money to our discerning customers and reinforce our commitment towards building durable structures and a strong India.

HeidelbergCement India Limited shall continue to strive and develop environment

friendly products that contribute towards sustainable development. QUALITY ASSURANCE:

Our policy is to supply excellent quality cement that cater continuously to the needs and

expectation of our customers both in terms of agreed schedule of delivery and international levels of quality. Our trained personnel ensure that various parameters of quality are maintained during the

process of manufacture so that the end product, Mycem, conforms or exceeds the standards set

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by BIS. Our endeavour is to achieve complete customer satisfaction. Mycems technical team makes continuous efforts to deliver quality products that can be

benchmarked as the best in the Industry.

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DATA ANALYSIS & INTERPRETATION

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48 | P a g e

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