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media > press reports
 
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UltraTech concrete — we make good concrete better
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Engineering prowess
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UltraTech announces financial results for the quarter ended on 30 September 2007
Business Barons
February 2008

Excerpts from an interview with O.P. Puranmalka, Group Executive President, Grasim Industries and Chief Marketing Officer, UltraTech Cement Ltd.

Mr. O.P. Puranmalka, Group Executive President, Grasim Industries and Chief Marketing Officer, Ultratech Cement Ltd
In step with its global agenda, the cement business of the Aditya Birla Group, is orchestrating a contemporary brand makeover. With UltraTech Cement, the Aditya Birla Group has established itself as not only the most respected domestic player but also among the global leaders in cement. Associate Editor Vidyut Kumar Ta in an exclusive interview with O.P. Puranmalka, Group Executive President, Grasim Industries and Chief Marketing Officer, UltraTech Cement Limited, analyses the strategy behind promoting a single brand identity of the company's cement products.

The Indian cement industry is on a roll. Driven by vertical-trajectory infrastructure development, a booming housing sector and surging global demand, the cement industry has ramped up production capacity, sparking off a spate of mergers and acquisitions to spur growth.

The demand for cement is linked to the pace of economic development in any country. Broadly, this can be categorised into demand for housing construction (homes, offices, etc.) and for infrastructure creation (ports, roads, dams, power plants, etc). The real driver of cement demand is new infrastructure. Although cement is a typical cyclical industry, a huge potential market and rapid growth have led to a surge in cement demand.

Keeping pace with the expanding demand for cement, the cement business of the Aditya Birla Group has integrated its national cement brands into one entity — UtlraTech Cement. Jaan Wahi, pehchaan nayi — this new brand identity sums up the ultimate promise — a forceful statement that communicates the business benefit of the level of service and quality that the company provides to its customers and partners.

Just a few years ago, the Aditya Birla Group bought over the cement business of L&T for around Rs. 2,200 crore. L&T allowed its name to be used for about a year. O.P. Puranmalka, Group Executive President, Grasim Industries, and Chief Marketing Officer, observes that in a very short time the company had to establish a new brand name in the minds of the people and use the L&T mind space. The task was Herculean. Explaining the strategy behind the new brand name, Mr. Puranmalka says: "We wanted to capture the gene code of L&T in the new brand name. So we commissioned research on customer perception about the L&T Cement brand. Of course, we were very sure in our minds that L&T Cement epitomised engineering prowess, technology quality and modernity."

The research findings threw up the same qualities, but the name itself was not associated with anything tangible because L&T was not by itself a meaningful word. Moreover, the group wanted a new brand image, which portrayed the intrinsic premium value of the brand — on cue from the findings of the survey. The outcome was UltraTech Cement. Mr. Puranmalka insists "nothing has changed except the name". There is no doubt that, with the unveiling of this new brand identity, the Aditya Birla Group implemented one of the largest brand transition exercises in India in the category.

Says Puranmalka: "The name UltraTech with the signature line, 'The Engineer's Choice', admirably captures the premium nature of the brand and its salience." According to Mr. Puranmalka, excellent product quality and customer care will remain the hallmark of UltraTech cement.

Jaan Wahi Pehchaan Nayi

A bus shade as part of UltraTech's nationally successful brand awareness campaign

Keeping pace with the current industry trend and taking the UltraTech brand to a new pedestal, the group decided to have one national brand. Birla Plus with its very strong presence in the North was a very well known brand. Its tag line 'Har Nirman Ki Jaan' and 'Is cement mein Jaan Hain' had become household phrases. Observes Mr. Puranmalka: "We opted for UltraTech as the national brand because while on the one hand, it gives us the opportunity to strengthen common attributes of a premium brand, scale of operations and the Aditya Birla Group's reputation, it also provides an opportunity to build on the positioning platform of 'expert' and imagery signifying 'progress', 'cutting edge technology' and 'modernity'.

While highlighting the need to present a single and unified brand identity across the country, Mr. Puranmalka stressed the fact that with this change, only the name of Birla Plus was being changed to UltraTech Cement and the core values and fundamentals on which Birla Plus was built will remain the same. "While both the brands have different identities and personalities, the core or the soul of both the brands is the same - i.e., Aditya Birla Group's lineage, superior product quality, premium cachet, trust and reliability. That is not changing and therefore our campaign is centred on the theme of 'Jaan Wahi, Pehcaan Nayi'," says Mr. Puranmalka.

Strategy
Although cement is said to be a low-involvement category, the brand awareness in this category is very high. Major brands like ACC, Ambuja and some strong regional brands have been fighting for mind space. Says Mr. Puranmalka: "Brand awareness is the category driver. We wanted to be different and were constantly on the look out for high visibility media. We found that cricket has a great following in our country and we wanted to explore the possibility of associating with this sport.

"Starting with in-stadia branding, we moved on to be the co-sponsor to the Indo-Pak series held in Pakistan. This turned out to be a great success for both the Indian team as well as us. To further strengthen the bonding with the channel partners, over 400 of them were taken to witness the match. It was a glorious and unforgetful experience of visiting Pakistan. This was an event by itself."

Chak De India

UltraTech had first of its kind in film sponsorship in Chak de India

IIndia, the world's largest producer of movies in as many as 10-12 different languages, provides a great opportunity for advertisers to reach the masses. Films are a great entertainment platform for most Indians. Many FMCGs have encashed this opportunity. The in-film branding opportunity was used by UltraTech for the first time ever in the cement industry. The film Chak De India, promoting women's hockey in India, became an all-time hit. In the movie UltraTech was the sponsor of the Indian women's hockey team. UltraTech branding was all over, throughout the movie. 'It was a big gamble we took," says Mr. Puranmalka. "Initially we were sceptical, with many big banners with big stars failing in the recent past. After a lot of deliberation, we decided to go ahead with this gamble and finally Chak De India almost became like a national anthem, with India winning the women's hockey title in reality and our cricket team winning the inaugural 20-20 World Cup."

Branded channels
Surging ahead of competition, the cement business brought in a new concept in cement marketing — UltraTech Building Solutions, a one-stop shop for all construction needs. "This is a unique concept and was tested in Rajkot which is one of the fastest-growing cities in construction in the country today," says Mr. Puranmalka. "Advocating our Plan, Build and Support" philosophy, it seeks to enhance the shopping experience of customers and strengthen existing trade partnerships, by upgrading the service proposition. It offers a wide spectrum of end-to-end home building solutions, high quality construction materials and allied value-added services. As a business model, UltraTech Building Solutions offers home building solutions from planning to completion.

Basically, every customer who walks in to UltraTech Building Solutions outlet receives guidance on construction-related issues as well as value-added services like Vastu, usage of budget software to estimate costs involved for construction, paper clearance procedures, etc. The customer gets a ready reckoner of information on how to choose and buy quality construction materials. With the Rajkot success and with key learning points, the company intends to open many more outlets across the country.

Measuring effectiveness
"Once the goals are well defined we need to measure the effectiveness of all such initiatives that are undertaken from time to time," says Mr. Puranmalka. "We are research-savvy in our approach. We go into minute details to find out the cause and effect, keeping the larger picture in mind." This is true right from the selection of the brand name UltraTech to ad campaign testing, media effectiveness and so on. Regular Brand Health Monitoring studies are undertaken to understand various critical issues like awareness, usage pattern, equity indices, psycho-economic mix of the target group (TG), etc. Mr. Puranmalka adds: "Recently we initiated and completed a customer satisfaction survey to understand the expectations of customers and benchmark with the best in the industry. Of course there are some insights, which we need to address internally, but overall we are happy with the outcome. The results are very encouraging and you would be glad to know we are steering ahead of competition."

UltraTech Concrete:
UltraTech's state-of-the-art transit mixer

While the economy is growing, timely completion of infrastructure projects has become more challenging. With emerging technologies, one no longer has to maintain huge stocks of cement and allied products, create chaotic environment and increase costs; ready-made concrete is the answer. The company forayed into the ready mix concrete about eight years back. With its first plant commissioned in Hyderabad, ready mix concrete was sold as a brand, 'Birla Ready Mix'. True to its tagline 'concrete on call', the company was able to capture the imagination of customers and service them round the clock. "The concept was new then," says Mr. Puranmalka. "It was more of concept selling than a product. We had to tailor-make our communication around issues in comparison with the site mixed concrete, quality consistency, concrete testing facility, ease of handling, technology, etc. In a very short time Birla Ready Mix Concrete became a generic name. The success of the brand led to the opening of a few more plants in Hyderabad itself and expansion to other states pan-India. With the transition of Birla Plus to UltraTech Cement, even Birla Ready Mix Concrete was rechristened UltraTech Concrete'.

"Our UltraTech concrete plants are present in Mumbai, Pune, Nasik, Nagpur, Ahmedabad, Surat, Gurgaon, Noida, Jaipur, Chandigarh, Chennai, Bangalore, Hyderabad, Cochin, Vizag, Ludhiana, Raipur and Kolkata and many more are coming up," says Mr. Puranmalka.

Keeping in tune with the latest technology, UltraTech Concrete offers speciality concrete like UltraTech Fibrecon, a fibre reinforced concrete, UltraTech Free flow, UltraTech colorcon, UltraTech stainless, a corrosion resistant concrete, and UltraTech Thermocon. This wide array of choices will help customers choose the right type of concrete that suits their construction needs.

UltraTech Cement has 11 integrated plants, seven split grinding units and five bulk terminals, including one in Sri Lanka. UltraTech is India's largest exporter of cement and clinker. The total cement capacity of the Aditya Birla Group is 31million tpa.

O.P. Puranmalka: Brand UltraTech
Excerpts from an interview with O.P. Puranmalka, Group Executive President,
Grasim Industries and Chief Marketing Officer, UltraTech Cement Ltd.

Why are you opting for a single national brand?
Cement is an integral part of the Aditya Birla Group's business and a clear focus area. The integration into one national brand is proof of that and a signal of the Group's commitment to take it further. The new beginning with UltraTech Cement as a national brand for the Group will not be a departure from the fundamentals that created Birla Plus. In fact, it will be an acceleration of that.

We would like to present a common and unified brand identity across the country. We have therefore chosen UltraTech Cement as the national brand for the Aditya Birla Group's cement business. Presently, we have two power brands in the country, but they operate in different markets and neither of them is a pan-India brand, in the real sense. While both the brands have different identities and personalities, the core or the soul of both brands is the same, i.e. the Aditya Birla Group's lineage, superior product quality, premium cachet, trust and reliability.

Since the DNA of the brands is same and the core promise of the brands is also similar, we felt that we would be better off with one national brand. With over 25 million tonnes per annum volumes, we now have UltraTech as the single largest cement brand in the country. With a single brand, it is easier to enter the hearts and minds of the consumer. We feel that combining the strengths of the two brands and two teams will have a multiplier effect on the quality of our service and therefore the brand equity.

Why have you opted for Ultratech Cement when you have strong existing brands such as Birla Plus? Why not vice-ersa?
UltraTech's retail outlet
Once we internally analysed that there were great synergistic benefits that accrue to consumers as well as the companies by transiting to a single national brand, it was a question of choosing either of our two national brands, i.e. Birla Plus or UltraTech cement.

This was not easy as both brands enjoy substantially high brand equity in their respective markets of operation and have a very high emotional connect with customers. Both are the most recognised brands in the category.

Birla Plus came through as a good quality brand with a very powerful and popular brand name. What remained peripheral were technology and dynamism. UltraTech on the other hand came across with a more contemporary and modern imagery.

We opted for UltraTech as the national brand because while on the one hand it gives us the opportunity to strengthen common attributes of a well-known brand, scale of operations and the Aditya Birla Group's reputation, it also provides an opportunity to build on the positioning platform of "expert" and imagery signifying progress, cutting edge technology and modernity. The brand UltraTech has extremely positive associations and awareness even in non-UltraTech markets such as the north zone.

Why are you not using the “Birla” brand name?
As mentioned earlier, the Aditya Birla Group's lineage is our core strength and the UltraTech brand also has benefited from this association.

While for the product brand name we are not using the "Birla" brand name, but in all our communication, whether to mass media like press, television, outdoor or retail branding, the Aditya Birla Group lineage comes across very strongly.

In fact, that is why we used the Jaan Wahi, Pehchhan Nayi as our campaign theme. It is a change we are making with great care, as we do not wish to jettison the strengths we have currently and move to unchartered territory. The core of Birla Plus' positioning - trust, reliability and the Aditya Birla Group's lineage - will continue in its new avatar, i.e. UltraTech. The change will add and not subtract from the equation.

Will there be financial / economical gains due to the single national brand?
As pointed out earlier, the single national brand exercise is aimed primarily at developing a common and unified brand identity across the country. This exercise is not driven by financial gains.

How different were the two brands and how do you see UltraTech evolving post this transition?
Birla Plus had evolved into a significant brand and it stood for a set of values of simplicity, smartness and reliability. With our campaigns of establishing it as Har Nirmaan Ki Jaan we brought in a bit of gorgeousness and lot of charm into the brand whereas UltraTech Cement was a brand on its own without any history. Our brand track researches suggest that it is probably the fastest growing cement brand in terms of equity and brand awareness.

By combining the soul of Birla Plus with the imagery of UltraTech, the brand will be distinctive and powerful, have distinctive lineage, with clear "technology" perceptions. In other words, we see UltraTech as being truly competitive, differentiated and having a strong and clear equity. The UltraTech brand aims to generate its strength by creating and consistently delivering distinctive performance benefits with compelling emotional benefits found in the brand personality.

How much will change now that Birla Plus will not be used as a brand? What are the changes being incorporated after the launch of UltraTech as the national brand?
UltraTech's brand awareness campaign also included roadshows

Nothing much will change after this brand name change. Birla Plus will now be known as UltraTech cement and that is the only change. The same state-of-the-art technology will continue to provide the same unmatched quality. The same team of efficient technicians will manage these production facilities to provide a world-class product that consumers have been used to all these years. The same committed and dedicated field force will be there in the market to provide the same level of customer care, which has made this product so loved by consumers.

Therefore technically speaking it is not a new brand but only a new name for Birla Plus. Nothing else has changed and hence Jaan Wahi, Pehchaan Nayi.

What is the risk that the premium enjoyed by Birla Plus brand will not be lost in this brand transition?
Since essentially the Jaan of the brand is not changing and we are only giving it a new Pehchaan, we are confident that there will be no dilution in either the volumes or the premium commanded by the brand.

A brand, as perceived by the only legitimate judges - our customers - is the sum of all their interactions with our company. Every place a customer can interact with our company is a touch point, and that touch point affects how we are perceived. A poor experience with one touch point can negate all the brand equity we build in other touch points. The premium is built on the basic characteristics of the brand. This basic character has its origin in the people who own the brand, the internal processes that support the brand and the trade partners who distribute the brand.

As I have said at various points the only thing that will change in this entire process of transformation is the name of the brand and everything else remains the same. The premium quality, the enormous technological backing, a dedicated team of technicians and managers and a commitment to serve the nation was what made Birla Plus so successful. Added to this were a team of dedicated, committed and resourceful trade partners and other service providers. This combination was responsible for placing Birla Plus cement so high in consumers' estimation and that combination is still intact.

Will you have a common team to look after the brand and what will the advantages of that?
With a common team looking after one national brand, we would be in a better position to provide a synergistic, consistent and superior service across the country. A common team has already been put in place internally. These teams are now building on each other's strengths, providing knowledge integration and exploiting synergistic opportunities. We now intend to take this forward to our team of dedicated, committed and resourceful trade partners and other service providers.

What are your major markets and where do you plan to expand?
With this brand transition of Birla Plus to UltraTech, the brand UltraTech Cement enjoys a leadership position in practically all the markets it sells in. It also becomes the single largest cement brand in the country with a pan-India presence. We plan to consolidate our leadership position in these markets and complete the process of transition to UltraTech in the next few months. Certain capacity expansions have already been announced. We will be adding 15 million tonnes capacity in 2008-09.

Ready Mix Concrete is a key focus area for us and we have lined up expansion plans for this business.

How are you going to generate awareness about the brand?
Instead of focusing the brand essence on merely product attributes or brand personality, a conscious effort is being made to focus brand essence on a set of touch points through which the brand can deliver a consistently distinctive and inspiring customer experience.

We have planned a series of product awareness launches across the country over the next couple of months. These ground events will be accompanied by road shows to create awareness about the product amongst consumers and trade partners. We will also organise technical meets with dealers, stockists, retailers, individual house builders, engineers, architects, masons and contractors to reassure them that UltraTech will have the same quality that they have come to expect in a premium product. In addition, a brand new television commercial, an innovative press campaign and creative usage of outdoor media will also be helping spread awareness about the new product.

What kind of marketing spends are envisaged in next few months?
The strength of such brands is matched only by the speed at which they are being built. Given the scope and scale of the brand leverage effort, an attempt has been made to build a much tighter link between corporate strategy and brand strategies. The brand is being seen as an asset that can drive growth and its positioning reflects not only existing markets, but also emerging opportunities.
The spending on the brand is being truly viewed as an investment in a dynamic asset that can be leveraged into new offerings, markets and audiences. The spending on the brand will be enough to communicate the transition and will not be wasteful.

What was the brief given to the advertising agency and its creative team? Are there any new promotional schemes for the next few months?
UltraTech's successful national TVC storyboard

Since Birla Plus cement had developed strong personality dimension, it was decided that UltraTech would appropriately maintain a focus on the core personality elements to ensure that there is no dilution in core equities during the re-naming exercise.

The agency was asked to design communication at all touch points to effectively communicate that the only thing that has changed in this entire process of transformation is the name of the brand and everything else remains the same. Hence the campaign - Jaan Wahi, Pehchaan Nayi.

The brief also ensured that in this process of transition, none of the values or attributes should be lost or diluted. The communication had to be designed in such a manner.

What is the industry scenario for 2008?
The continued emphasis given by the government in the recent past on the development of infrastructure like roads, ports and urban infrastructure like flyovers, etc. means that cement demand will continue to rise. Similarly, developments in the housing (especially rural housing) sector have also added to the growth of the cement market. This is in spite of the fact that the per capita consumption of 110 kgs is below the world average of 356 kgs and far below that of the Asian economies like China and South Korea. This provides a tremendous opportunity and the cement sector is poised for exponential growth. We may witness continued consolidation efforts in the industry.

What are your rural marketing plans?
The various initiatives taken by the government recently have given a boost to the rural economy. The rate of growth of the housing sector in the rural segment is increasing every year. UltraTech is already well represented in the rural markets and we are planning various initiatives, which will help us grow in this sector. For obvious reasons I am unable to share these plans at this stage. These will include providing technical assistance to masons and contractors, teaching them more cost-efficient construction methods and usage of eco-friendly cement and cement products.

UltraTech unveils a new campaign

What do consumers expect from a leader?
Everyone looks up to a visionary leader to understand the possibilities tomorrow holds. And you have a greater responsibility to bear when you are India’s largest cement company.

In the present day context, UltraTech is playing an important role in the infrastructural development of the country. No wonder, UltraTech’s every creation is a window to tomorrow. And an effective communication was needed to reflect the same.

According to Mr. O.P. Puranmalka, Group Executive President, Cement Business, Aditya Birla Group, the challenge was to create an emotional connect while retaining the technological superiority. The communication had to furthermore reinforce UltraTech’s position, cue leadership and take the brand to the next level.

It was quite a daunting task for Interface Communications, the advertising agency for UltraTech, to get the right mix of emotions and technological superiority that appeals to everyone right across IHBs to architects and large commercial establishments.

The agency developed an idea that turned out to be one of the most distinct and clutter-breaking films the Indian viewer has seen. It is also a logical extension to the expert platform that seamlessly cuts across segments and takes the communication to the next level through a simple theme – ‘Har badalte aaj mein, maine kal ko dekha hain.’

According to Puranmalka, “The film provides a great mix of emotions blended with eye-catching technology through superior graphic work. The communication reinforces UltraTech as an expert in continuous pursuit to achieve perfection.”

The film has received rave reviews from everyone in the industry and consumers. According to Rajesh Saathi, Director, Keroscene Films, “It’s the simplicity of the idea that actually made this a piece of marvel.” Evidently, the campaign is able to cut across the masses and connect with people in cities as well as villages. That’s the power of an idea. And today along with the leader, every Indian says: ‘Har badalte aaj mein, maine kal ko dekha hain.’


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