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    JK Organisation: Group 9

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    Ashish Gondane
    JK Lakshmi Cement was established in 1982 in Rajasthan, India. It has 12 production plants across Northern India with a total production capacity of over 509 million tons per year as of 2018. The company produces various cement products and has expanded significantly over the years. It faces competition from several major cement companies in India but has increased its sales and production capacity annually for the past five years. The Indian cement industry is the second largest globally and continues to grow driven by the housing and infrastructure sectors.

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    JK Organisation: Group 9

    Uploaded by

    Ashish Gondane
    22 views12 pages
    JK Lakshmi Cement was established in 1982 in Rajasthan, India. It has 12 production plants across Northern India with a total production capacity of over 509 million tons per year as of 2018. The company produces various cement products and has expanded significantly over the years. It faces competition from several major cement companies in India but has increased its sales and production capacity annually for the past five years. The Indian cement industry is the second largest globally and continues to grow driven by the housing and infrastructure sectors.

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    JK Lakshmi Cement was established in 1982 in Rajasthan, India. It has 12 production plants across Northern India with a total production capacity of over 509 million tons per year as of 2018. The company produces various cement products and has expanded significantly over the years. It faces competition from several major cement companies in India but has increased its sales and production capacity annually for the past five years. The Indian cement industry is the second largest globally and continues to grow driven by the housing and infrastructure sectors.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    22 views12 pages

    JK Organisation: Group 9

    Uploaded by

    Ashish Gondane
    JK Lakshmi Cement was established in 1982 in Rajasthan, India. It has 12 production plants across Northern India with a total production capacity of over 509 million tons per year as of 2018. The company produces various cement products and has expanded significantly over the years. It faces competition from several major cement companies in India but has increased its sales and production capacity annually for the past five years. The Indian cement industry is the second largest globally and continues to grow driven by the housing and infrastructure sectors.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 12

    JK Organisation

    GROUP 9
    Chirantan Bhowmick – P19006
    Ashish Gondane – P19014
    Rahul Katara– P19023
    Irshika Lal – P19028
    Sameer Parate – P19036
    Mohit Yadav – P19056
    JK Organisation
    • A diversified group of business with a turnover of $4.0 billion
    • Footprints across 6 continents and 100 countries operating in multiple businesses
    • Companies:
    Company Overview
    • Established in 1977,JK Tyre is ranked top 24th company in the world for Revenue
    manufacturing automotive tyres Indian Tyre Industry
    • Pioneer of radial technology in India and No. 1 in Truck/Bus Radial (TBR) 10%
    manufacturer. Tractors

    • 12 manufacturing plants having total capacity of ~32 million tyres per annum. 2/3 Wheelers
    16%

    • Globally among the top five in lowest energy consumption(9.81 Gj/Ton) Passenger cars
    50%
    • Acquired Cavendish Industries Limited (CIL) in 2016. Expanded TBR segment by
    LCV 17%
    ₹ 275 crore in 2018-19
    • Net profit of ₹16 crore for Q1 FY20, down 75 per cent from ₹64 crore in the Truck and Bus 7%

    corresponding period last year.


    • However, revenue from operations grew 6 per cent YoY to ₹2,575 crore (₹2,439 INDUSTRY OVERVIEW
    crore).
    • Indian Tyre industry generates over
    Truck and Bus Radial (TBR) Light commercial vehicles incl SUV Rs.63000 crores in turnover ($9 bn).
    (Bias and radial) • Commercial tyre segment accounts for
    Others JK Tyre
    Others JK Tyre 66.67% of the total tyre market.
    • The country’s automobile industry
    30% reported a decline in growth i.e. 6.5% in
    36% 2018-19 compared to 14.9% in 2017-18.
    MARKET SHARE • Radialisation is the key driver for growth
    64%
    70%
    INDIAN TYRE INDUSTRY OUTLOOK FY20

    Tyre demand is estimated to grow at a slower pace of 3-5%,which is due to the decline in MHCV sales subsequent to the change in axle
    norms. This also muted the customer sentiments in Cars and UVs and 2Ws.

    Exports are set to grow at a pace of 3-5% on increasing acceptability of Indian tyres, whereas imports are set to declined by 1-3% owing to
    the anti-dumping duty.

    Growth Strategy Going Forward


    • Increase Global Business • Strengthen Market Position • Derive benefit from CIL • New Product Development
    Share across Segments acquisition through Focus on R&D
    - Enhancing geographical - Focus on increasing - Low cost acquisition in - Launching eco range of
    reach in Europe, Australia volumes across all product comparison to new products for cars and buses
    and South Africa with wide segment in replacement greenfield project (E-vehicle) fitted with ultra
    product range. and export segment. (Chennai). low rolling resistance Tyres
    - Technologically advanced - Expanding distribution - Strategic entry to 2/3 in domestic and export
    and eco-friendly tyres in line channel through exclusive wheelers segment marketspace.
    with market requirements. brand shops across PAN - Substantial enhanced - Smart Tyre Technology
    - Dedicated domain experts India to gain market share. capacity across all
    for 2W tyres to handle product segments.
    export markets
    JK Paper Ltd.
    • Largest wood based paper manufacturer in India

    • Market leader –Copier paper segment with 50% revenue and 23% market share

    • Top two in coated paper and packing board segment with 16% and 11% market share respectively

    • More than 100% operating capacity utilization due to supply constraint.(108.7%)

    • Lots of products in B2C segment, thus have some prizing power.

    • The company is continuously striving to achieve operational efficiency resulting increasing the gross
    efficiency margin from 39% in 2014 to 56% in 2019.with CAGR of 6.21%

    • Due to market maturity and industry competitiveness ,company made efforts to reduce material cost by
    substituting imported wood pulp through its farm program
    JK Paper Ltd.
    • The company has brought down its power and fuel cost via use of renewable sources ,about 65% energy
    requirement at Odisha plant is met via renewable energy.

    • Despite being in a commoditized sector, it spends consistently in R&D about a sum of ₹4 Cr per annum.
    That goes:
    1. Towards improving product quality
    2. Towards higher pulp yield
    3. Towards reducing the maturing age of eucalyptus

    • Company has announced latest expansion plan of 2100 Cr in sept 2019,as soon as new capacity comes up
    there will be oversupply leading to lower capacity utilization. Company expects the demand scenario to
    persist for another 3-5 years with a growth rate of 6-7%.
    JK (Umang) Dairies
    • Umang Dairies Limited offer the following products : - SKIMMED MILK POWDER (SMP) - WHOLE MILK POWDER (WMP) -
    DAIRY CREAMERS - DAIRY WHITENERS - TEA & COFFEE PREMIXES (Especially Developed for Vending Machines) - PURE
    GHEE (CLARIFIED BUTTER) - FRESH CREAM – Butter

    • Market capitalization of UDL is ₹ 77 crores.

    • The dairy plant has a capacity to process over 11.5 lac litres of milk per day.

    • UDL has a wide service network of 800 distributors and1.5 lac retailers

    • Food Safety and Quality remained a Focus Area for UDL. It is one of the first dairy processing companies in India to have
    received ISO 9002 certification.

    • fully developed R&D centre constantly works for improving systems of milk collection, processing and product
    upgradation.

    • The Revenue from Operations was Rs 22,577 Lakhs during the year as compared to Rs 24,576 Lakhs in the previous year
    JK (Umang) Dairies
    • The company has delivered a poor growth of 0.75% over past five years.

    • UDL is continuing to invest behind retail distribution expansion and up-gradation of distribution infrastructure.

    • 2018-19 was a challenging year as several small players entered the industry due to surplus availability and
    low price of SMP.

    • In the coming year UDL will continue its efforts to build both its consumer and institutional segments for its
    products including SMP and Ghee. The company has renewed its efforts on New Product Development.

    • Expansion and Modernization Plan UDL continues to modernise its plant for better efficiency

    • The dairy market in India reached a value of INR 9,16,800 Crores in 2018.

    • As per research agencies, dairy sector to grow at 15% CAGR till 2020. Interestingly, the per capita milk
    consumption in India is increasing at 3% CAGR as compared to 1% globally.
    JK Lakshmi Cement
    • JK Lakshmi Cement (JKLC) was set up in 1982– in a village in District Sirohi, Rajasthan under the JK
    Organization
    • Products : Platinum Heavy duty cement, JKLC Sixer Cement, JK Lakshmi Cement, JK Lakshmi Pro+ Cement, JK
    Lakshmi Gypsum Plaster, JK Lakshmi Ready Mix Concrete, JK Smartblox Autoclaved Aerated Concrete
    • In 1999, as part of its plan to concentrate on the cement division, JK Corp had earlier decided to set up one
    million tonne unit in Karnataka and another 1.5 million tonne unit in Madhya Pradesh.
    • In 2015 chosen among 100 most trusted brands.
    • Major Competitors : Ambuja Cement, Ultratech Cement, ACC, Shree Cement, The India Cement Ltd., Dalmia
    Bharat Group, Ramco Cement
    • Y-O-Y Sales has increased for the last five years, along with their production and cement capacity.
    • They have 12 production plants spread across Northern India.
    • They have a strong network of about 7000+ cement dealers spread in the various states which has helped
    them to serve our customers far and wide, in different regions of India.
    JK Lakshmi Cement
    • With 509 million tones per year of cement production capacity as of 2018, India is the second largest cement
    producer in the world and accounts for over 8 per cent of the global installed capacity, as of 2018. Cement
    production is reached to 337.32 million tones in 2018-19 and stood at 216.8 million tones between April-
    November 2019.
    Demand
    Housing sector acts as the principal growth driver for cement. However, industrial and infrastructure sectors
    have also emerged as demand drivers.
    Barriers to entry
    • High capital costs and long gestation periods. Access to limestone reserves also acts as a significant entry
    barrier.
    • India's exports of cement, clinker and asbestos cement increased at CAGR of 10.5% between FY12-FY20
    (April-July 2019) to reach US$ 177.9 million.
    • FDI inflow in industry related to manufacturing of Cement & Gypsum products reached US$ 5.3 billion
    between April 2000 and June 2019.
    Potential
    India has a lot of potential for development in the infrastructure and construction sector and the cement sector
    is expected to largely benefit from it. Some of the recent major initiatives such as development of 98 smart
    cities are expected to provide a major boost to the sector.
    JK Organization BCG Growth Share Matrix

    HIGH
    Market growth rate

    LOW

    Ag
    ri

    HIGH LOW
    Relative Market Share
    Thank You

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