REPORT ON JK CEMENT

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HISTORY BEHIND J K CEMENT The initial "J.K." stands for a father- son team, namely: Juggilal Kamlapath Singhania ? J .K. organization started in the year 1884 at Calcutta. J .K. started their business as a Financier, Investor, Trading Supplier of cotton belts and manufacturer of small machinery parts like ‘V' belts, etc. They established few small cotton textile industries also. ? In the year 1914 they shifted their business from Calcutta to Kanpur where they established many big industries like J.K. cotton Mills, Straw product Co, Lohia Mach, J.K. Pulp and Raymond’s Woolen, etc. ? In the year 1934 J.K. organization started one more division, as J.K. Synthetics Ltd.

They established various big plants of Nylon, Acrylic fiber, etc. at Kota and Tyre Cord, Chemical and Pesticides at Jhalawar. ? In the year 1974 under the same division one more unit was started for manufacturing of Grey Cement at Nimbahera. ? The present cement factory was commissioned in the year 1974. The plant started its production from 27th Dec 1974. ? Ist plant / kiln was commissioned in 1974 and the capacity of this plant was 900 tonne per day and 3 lakh tonne per year. After modification in Preheater, its present capacity is 1200 TPD. ?

Expansion of this plant took place in the year 1979, when 2nd kiln was commissioned with a capacity of 1200 tonne per day and 7 lakh tonne per year. After modification in Preheater its present capacity is 1800 TPD. ? Again in the third phase, a kiln was erected in the year 1982 and production of this kiln was 1350 tonne per day. ? In the year 1988 a new technology was introduced in this 3rd Kiln that consisted of precalcination process, which raised the capacity of this plant to 3400 tonne per day, which was earlier 1350 tonne per day. In Aug.-2003 after again some modification in Preheater and Folex cooler its capacity is increased to 5000 TPD. ? Besides, J.K.

cement plant is having its own diesel generator sets, producing power to meet the power energy requirements. ? Main raw material for cement is LIMESTONE, for limestone we have our own open cast mines adjoining to the plant. Besides we have developed few more mines at Maliakhera, Karoonda and Tilakhera for producing 10,000 tonnes limestone per day as needed. ? J .K. Cement erected one more plant from Jan. 2001 with the capacity of 1400 tonne per day at village Mangrol. In Nov.-2003 after modification in Preheater and installation of Mechanical elevator its capacity increased to 2200 TPD. ? Due to power shortage as imposed by Ajmer electricity supply board J.K. established its own Thermal Power Plant at village Bamania, near Shambhupura, which is generating 15 M.W. power every day, which is consumed by J.K. Cement Plant. ? J K Cement also has a plant of 400TPD installed capacity of White Cement at Gotan, Nagpur (Raj). ? J.K. Cement has started the following projects: ? Cement Project at Karnataka of over 5500 TPD and Thermal Power Plant of capacity 30 MW. ? Thermal Power Plant at Nimbahera of 22 MW. ? Waste Heat Recovery Plant at Nimbahera of 15 MW capacity. ? Bhumi Poojan of Dr Gaur Hari Singhania Technical University at Bhatewar, Udaipur. ? J.K. cement is one of the most productive, cost efficient cement producing plant in the country, a company, believing in corporate responsibility to society, ?

integrity and fairness. The company’s cement is sold under the J.K. Sarve Shaktiman brand name, enjoys good brand image and a price premium. The following types of cements are produced by J K Cement Works. (a) Ordinary Portland Cement (OPC) (b) Portland Pozzolana Cement (PPC) (c) Super Silicate Cement (SSC) (d) Masonry Cement (MC) J. K. Cement manufactures and markets cement and clinker for both domestic as well as exports markets. 1.2 PRESENT CAPACITY AND PERFORMANCE 1.2.1 CLINKER PRODUCTION Ist Plant / Kiln 1200 Tonne Per Day (TPD) IInd Plant / Kiln 1800 TPD IIIrd Plant / Kiln 5000 TPD IVth Plant at Mangrol 2200 TPD Total Capacity 10200 TPD 1.2.2 PRODUCTION ANALYSIS TABLE: IN TONS Year Clinker Cement 2005-06 3170268 3511022 2006-07 2907196 3640823 2007-08 2917045 3765855 1.2.3 FINANCIAL ANALYSIS: IN Rs. / Crore Year Turnover PBT 2005-06 1108.7 52.2 2006-07 1529.7 272.0 2007-08 1812.8 346.6 2. MANAGEMENT SET- UP 2.1 Corporate Level- Kanpur Chairman - Dr Gaur Hari Singhania Managing Director - Shri Y P Singhania Group Executive President - Shri R G Bagla 2.2 Unit Head Level- Nimbahera President - Shri D.

Ravisankar 3. ORGANIZATIONAL CHART 4. J K Marketing Organisation & R T C - North 4.1 J K MARKETING ORGANIZATION The Head office of Marketing Department of J K Cement Ltd. is at Delhi, which is headed by Sr. V P (Marketing-Grey Cement) and Sr. V P (Marketing-White Cement). The White Cement is sold all over India and the Grey Cement is sold in the States of Rajasthan, M.P., U.P., Haryana, Punjab, Gujarat and Delhi. With the commissioning of J. K Cement Project, Karnataka Southern region will also be covered for Grey Cement. 4 .2 Regional Training Centre The Regional Training Centre - North is a premier training centre of North India promoted with assistance from World Bank, DANIDA and Govt. of India as a unique HRD project in Cement Industry is also attached with J K cement Works as Lead Plant.

It is equipped with modern training aids and caters to the skill enhancement and competency developmental needs of more than 20 cement and other plants. It has trained over 5000 technical and managerial personnel during the last 12 years. The centre has conducted many tailor-made in-house programs for cement and other industries in India and abroad including for Oman Cement, Oman and Star Cement, Dubai. RTC has specialized packages / modules in Mining, Process, Maintenance disciplines like Operation & Maintenance of HEMM / Gear Boxes / Pumps / Compressors / Electrical & Electronics Equipments / Energy Conservation / Environment Management and Machinery Alignment, etc. designed and developed by renowned International / National agencies like FLS Denmark, NCCBM, TATA Interactive Systems, VEC, NITTTR, etc. More than 100 senior line mangers from ten plants have been trained at Denmark, NITTTR, Bhopal and Chennai, who act as resource persons for these programs. Besides, OEM’s and management experts of national repute are invited for various technical and management programs to make them effective and gainful experience for the participants. 5. SOCIAL RESPONSIBILITY Educational services: ? Construction of rooms in Govt. College at Nimbahera. ?

Running JK Institute of Technology, ITI in five trades affiliated to NCVT. ? Running 10+2 CBSE affiliated school ? Running Regional Training Centre for Cement technocrat’s aided by WB & DANIDA. ? Various constructions in nearby govt. Schools of Chittorgarh district. ? We are involved in girls school (under construction) and committed reasonable financial contribution for above Medical services ? Rs. 36 lacks contribution for the construction of govt. Hospital at Nimbahera. ? Ambulance to govt. Hospital. ? Free facility of pathological laboratory for the persons of surrounding area. ? Financial contribution to various NGOS for medical camps in the district. ? Financial contribution for construction of dispensary & health centre in nearby villages. ? Free Homeopathic consultancy/medicines for the patients of nearby area. Religious services ? Radhakrishna temple at colony premises. ? Prayer hall in hanuman temple in Nimbahera. ? Bheemkeshwar temple in staff colony. ?

Dharmashala at Bhanwarmata (tourist/ religious place). ? 8 rooms for Dharamshala at Pashupati Nath temple in Mandsaur (M.P.). ? Various temples in number of nearby villages. Sports services ? Sports infrastructure like wooden badminton court, table tennis court, billiard room, and cricket ground, volleyball ground in colony campus. ? Sponsoring all India youth football, volley ball and badminton tournaments. ? Sponsoring inter-district tournaments. ? Arranging summer camps for various sports. Other social services ? Construction of approach roads in and around villages of mining area. ? Digging of tube wells. ? Supply of tube well pumps. ? Construction of water tanks. ?

Supply of drinking water in tankers in nearby needy places during summer. ? Regular plantation in plant, colony and nearby villages. ? Direct and indirect employment to thousands of persons of surrounding area. ? Financial helps to NGOS. ? Financial aid to organize religious festivals by municipal board. 6. POWER & STRENGH :- We enjoy a number of key competitive advantages, which have helped us maintain our position as one of the leading cement manufacturers in the Northern Indian cement market. Our principal strengths and competitive advantages are as follows: Leading position in attractive Northern India grey cement market: Based on CMA data, Northern Indian cement manufactures have consistently operated at the highest levels of capacity utilization among India’s five regions. We believe this reflects the strong demand in Northern India for cement products relative to supply. Further, based on capacity expansions announced by cement manufacturers, we expect cement plants in Northern India to continue to operate at high utilization levels and anticipate continued strong demand for our grey cement products in the near and medium-term. We believe that we are well positioned to take advantage of this demand, as the fourth largest grey cement manufacturer in Northern India, and the largest grey cement manufacturer in the state of Rajasthan. Second largest white cement producer in India: White cement accounted for 16.6% of our total cement revenue and 35.2% of adjusted EBITDA from our cement operations in fiscal 2005, and 15.5% of revenues and 26.7% of our adjusted EBITDA from our cement operations in the six months ended September 31, 2005. Unlike grey cement, the white cement industry in India is highly concentrated with the two largest players accounting for the substantial majority of India’s production capacity. Consequently, prices of white cement have been relatively less volatile and sales of white cement have generated more stable cash flows for us even during industry downturns in grey cement.

We also believe our position as the second largest producer of white cement in India, together with our nationwide delivery network, significantly enhances the overall brand image of JK Cement. Proximity and access to large reserves of high quality limestone: We have access to large reserves of limestone for both our grey and white cement operations, which we believe are sufficient to sustain our operations well into the future. Based on independent geological surveys of different mines during 1996 to 2001, we believe that our limestone reserves are sufficient to support our current and planned capacity for approximately 40 years for both grey and white cement. (Put in risk - assuming we are able to renew our existing leases upon their expiry) As one of the first cement producers in Northern India, we were able to choose our limestone reserves in an area with high quality limestone resources. In addition to allowing us to produce white cement, which requires high quality limestone,

it also provides us with a cost advantage, as we are not required to purchase sweeteners to improve the quality of limestone. Further, our manufacturing plants are in close proximity to our limestone reserves, resulting in lower transportation costs. Finally, our mines that supply our white cement plant at Gotan also have a supply of white clay, an important additive necessary for white cement production. Quality of products and strong brand name: We believe that brand name and reputation are important to retail purchasers of cement in India. We have built a strong reputation among cement purchasers by consistently providing high quality products. We believe that there is strong customer awareness of our brands,

JK Cement (“Sarvashaktiman”), for grey cement in our principal market in Northern India, and JK White (“Camel”), for white cement across India. Further, we believe that our brand name and our reputation for consistently supplying high quality products provide us with a competitive advantage in ensuring that cement dealers carry our products. Extensive marketing and distribution network: We have a wide distribution network for grey cement in Northern India. We also have a strong all-India distribution network for white cement. Our distribution network for grey cement products consists of 44 feeder depots serviced by seven regional sales offices in Delhi, Haryana, Uttar Pradesh, Punjab, Rajasthan, Madhya Pradesh and Gujarat. Our white cement network comprises 20 feeder depots serviced by 13 regional sales offices in Delhi, Chandigarh, Uttar Pradesh, West Bengal, Andhra Pradesh, Tamil Nadu, Karnataka, Kerala, Maharasthra, Gujarat, Madhya Pradesh and Rajasthan. In addition, we have more than 4,000 retail stores that stock our grey and white cement products, as well as 22 sales promoters and four handling agents. We believe that the extent of this network, and our relationships with our dealers, enables us to maket and distribute our cement widely and efficiently.Experience and technical know-how: We have 30 years of experience in the Indian cement industry, which we believe provides us with the skills to maximize production efficiency, expand production capacity quickly and reduce costs. Over the years, we believe that we have developed long-term customer relationships and a strong reputation for quality. In addition, we have a proven track record of upgrading and modernizing our production capabilities efficiently, having increased our production capacity at Nimbahera by more than 80%, from 1.54 million tons in 1998 to 2.8 million tons as of September 30, 2005. Further, we have a stable and experienced middle and senior level management team, many of whom have been working in our cement operations for more than 20 years. Our Nimbahera manufacturing facility was chosen by the World Bank and the Danish International Development Agency as one of the four training centers in India to serve as the “Regional Training Center” for Northern India. There are only four regional training centers for the cement industry in India, and we believe our operation of the training center provides us with access to state of art training aids, live working models, and technical expertise developed by well known national and international cement producers MANUFACTURING PROCESS ? CEMENT:- 1. Mining 2. Crusher, Stacker & Reclaimers 3. Grinding 4. Kiln System 5. Packing Plant 6.

Quality Characteristics of Cement CEMENT:- There are three production lines involving five significant manufacturing stages, namely crushing, raw meal grinding, clinkerisation, cement grinding and packing. At crushing stage, run of limestone mines is crushed to desired size so as to achieve optimum grinding efficiency in the Raw Mills. Crushed limestone is stacked by stacker in a stockpile and reclaimed by means of a reclaimer. The stockpile serves as a buffer stock storage. Partial quantity of laterite & bauxite is also added during crushing. In Raw Mill, crushed limestone with late rite is fed through weigh feeders. The feed quantity and ratio of feeds are controlled based on the chemical analysis results from QCX (X- ray)/Laboratory. The raw material is ground in ball mills and the fineness (residue) is controlled by separator damper control. The raw material is also ground in VRM where fineness is controlled by separator's speed. The ground raw meal is blended for homogeneity and stored in raw meal storage silo or in C.F. Silo. Clinkerisation is the heart of cement manufacturing process, where the raw meal is fed to the preheater at controlled rate through electronic weigh feeder and/or solid flow meters. The feed enters the kiln through cyclones (for Unit I, II) and through Precalciner (for Unit III) and the fuel is fired at the kiln outlet end (also in precalciner for unit -111). The counter current of hot gases against the material flow right from preheater stage to kiln outlet converts raw mix to clinker by pyroprocessing stages like calcination and clinkerisation. The clinker is cooled in coolers. Clinker is transported to clinker yard for storage. Clinker and gypsum are thereafter ground to a specific fineness in bqll mills to produce final product i.e. Cement.

The blaine (fineness) of cement is controlled by separator's speed in close circuit grinding and by mill fan damper opening during open circuit grinding. Cement is transported to cement silos for storage. Cement is drawn from cement silos for packing in bags by mechanical rotary packers. 1.1 CEMENT Cement can be defined as any substance, which can join or unite two or more pieces of some other substance together to form a unit mass. Cement, as used in construction industries, is a fine powder which when mixed with water and allowed to set and harden can join different components or members together to give a mechanically strong structure.

Thus, cement can be used as a bonding material for bricks or for bonding solid particles of different sizes (rubble masonry) to form a monolith. 1.2 HISTORY OF CEMENT The history of cement is the story of civilization from primitive caves of pre-historic times to the skyscrapers of the modern age. It is said that the use of cement is form the period of use of fire.

Egyptians utilized gypsum plaster as cementing material as early as 3000 BC building their monuments. However, It was in 1824, sixty-eighty years after the discovery of hydraulic properties of lime Joseph Aspdin patented his product, which was called "Portland Cement" The plants manufacturing portland cement outside England were commissioned in Belgium and Germany in 1855. The interest that is evoked in the technology o f cement resulted in the development of Rotary kilns in 1886. Modern cement is the outcome of the combined research and development efforts of chemists, technologists and architects. The cement technology is an offshoot of the overall development in other industries, technology, constructional activities and knowledge and the availability of raw material.