Changing Face of Industrial Marketing in India Post Liberalizationcement Industry

Topics: Marketing, Capitalism, India Pages: 10 (3546 words) Published: April 6, 2013

Submitted By: Abhendu Chandra Saha Adnan Ahmad Sasmita Guru Amarjeet Kumar Niharika Gupta

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Section C

This paper speaks about the changing face of industrial marketing in Indian cement Industry-Post liberalization. The cement industry in India has witnessed phenomenal changes over the years. Some of the drivers of change are: 1. Government 2. Real Estate

3. Infrastructure

Moreover this paper discusses about B2B trends like consolidation, process automation, technology, cement economics, Branding and research and development. Conclusively, to serve as a truly global company, the operations of a company can’t just be restricted to India. Indian companies should look at entering foreign countries in other continents to have a far larger customer base, thus enhancing production and creating demand leading to stronger businesses and to produce high quality cement and in the cheapest and most efficient manner possible, new technologies have to be adapted. New technologies have to be introduced and implemented across various plants and factories for enhanced control and efficient production of the product. Process Automation has to be employed to create high quality products.

1.0 Introduction
The Indian Cement industry is the second largest cement producer in the world, with an installed capacity of 144 million tonnes. The industry has undergone rapid technological up gradation and vibrant growth during the last two decades. The cement industry in India has witnessed phenomenal changes over the years. Some of the drivers of change are: 4. Government 5. Real Estate

6. Infrastructure GOVERNMENT: From the era of direct government control over cement production and distribution to today’s globalization of Indian cement industry, Government of India has always been one of its major drivers of change. Tax concession, Tax rebate, etc. to new foreign players have changed the entire cement business in India. With multinational cement players coming in, the cement quality and standards have improved a lot. REAL ESTATE: The boom in the cement industry in India came in 2003, when the real estate rates started rising. Over the past few years (FY03-07), cement demand has grown at a CAGR of 8.37% which is higher than the CAGR of supply at 4.84%. Real estate sector is the key driver and accounted for almost 55% of cement demand in FY 07. (Jelsoft Enterprises 2010) INFRASTRUCTURE: In this FY10 budget, the Government spends Rs. 1.73 trillion on infrastructure. With many international events like Commonwealth games 2010, Hockey World Cup 2010, Cricket World Cup 2011 etc, the need to develop world class infrastructure was felt in early 2000’s. As a result, many new multi billion dollars project were sanctioned to develop roads, metros, airports, railway stations etc all across the country, thus, boosting the demand for cement. In 1989 the cement industry was given complete freedom, in 1991 the industry was de licensed. This resulted in an accelerated growth for the industry and availability of state of the art technology for modernization. Most of the major players invested heavily for capacity expansion.

To maximize the opportunity available in global markets, the industry laid greater focus on exports.

2.0 Review of Literature
With the explicit initiation of the economic reforms in 1991(liberalization) India adopted a new development paradigm. It is argued that the government has no role to play except for providing essential public goods as the costs of such interventions will be very high (Lal 1997, Tsai 1997), while on the other hand it is felt that the government has a role to play (though not for wholesale or inefficient intervention), particularly to improve the technical capabilities of the sector (Lall 1994 and 1996). It is also argued that even in...
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