Strategic analysis of indian ceramic tiles indusry
1. Strategic Analysis
of
Indian Ceramic Tile
Industry
Presenting by :
Shakti Dodiya M- 7874177418
Hemant Hadiel M- 9723664224
Shoeb Sheikh M-9067949799 [ 90
2. Reserch Methodology……
Main Objective:
Strategic Analysis of Indian Ceramic Tile Industry
Sub Objectives:
To know what is the present outlook of the Industry
To Know who are the players in the Industry
To Know what is the Domestic & Global scenario of the industry
To know what are the growth drivers of the present industry
To indentify the driving forces of the industry
To know the attractiveness of the Indian ceramic tile industry
To know the key success factors of the present industry
To know the Political, Economical, Social and Technological Factors
affecting the Indian ceramic tiles industry
To know the competitive forces of the industry
To know the probable opportunity and threats of the industry
To know the present performance of the industry
To do comparative analysis of top players of the industry
3. Reserch Methodology
Data Collection:
1. Personal Interviews with Experts
2. Secondary Data
Tools:
Porters Five Forces Analysis
PEST Analysis
Industry Life cycle Analysis
9 Cell Matrix
OT Analysis
4. Indian Tile Industry Highlights
World Production : 9515 Million sq.mt.
India's Share : 550 Million sq.mt.
World Ranking (in production) : 3
Per capita Consumption : 0.50 sq.mt.
Global Industry Growth Rate : 11%
Growth Rate (India Domestic Market) : 15%
Organized Sector Turnover (India) : Rs 7200 crores
Unorganized Sector Turnover : Rs 10800 crores
Investments in last 5 years : Rs 2000 crores
Organized Sector:
Share of Production : 40%
No. of units : 14
Unorganized Sector:
Share of Production : 60%
No. of units : 200 Approx.
:(70% based in Guj.)
Job Potential : 50,000 direct
: 500,000 indirect
5. Indian Tile Industry Highlights
World Production : 9515 Million sq.mt.
India's Share : 550 Million sq.mt.
World Ranking (in production) : 3
Per capita Consumption : 0.50 sq.mt.
Global Industry Growth Rate : 11%
Growth Rate (India Domestic Market) : 15%
Organized Sector Turnover (India) : Rs 7200 crores
Unorganized Sector Turnover : Rs 10800 crores
Investments in last 5 years : Rs 2000 crores
Organized Sector:
Share of Production : 40%
No. of units : 14
Unorganized Sector:
Share of Production : 60%
No. of units : 200 Approx.
:(70% based in Guj.)
Job Potential : 50,000 direct
: 500,000 indirect
6. Indian Tile Industry Highlights
World Production : 9515 Million sq.mt.
India's Share : 550 Million sq.mt.
World Ranking (in production) : 3
Per capita Consumption : 0.50 sq.mt.
Global Industry Growth Rate : 11%
Growth Rate (India Domestic Market) : 15%
Organized Sector Turnover (India) : Rs 7200 crores
Unorganized Sector Turnover : Rs 10800 crores
Investments in last 5 years : Rs 2000 crores
Organized Sector:
Share of Production : 40%
No. of units : 14
Unorganized Sector:
Share of Production : 60%
No. of units : 200 Approx.
:(70% based in Guj.)
Job Potential : 50,000 direct
: 500,000 indirect
7. Export comparison: India Vs Global
% Share In
Country
Global Exports
CHINA 35.25
China’s Export ITALY 14.45
Growth Rate 32% SPAIN 12.40
TURKEY 4.20
BRAZIL 2.85
India’s Export
Growth Rate 1% IRAN 2.70
MEXICO 2.60
POLAND 2.10
UAE 1.60
THAILAND 1.60
INDIA 0.90
8. Geographical Presence of the Indian
Ceramic Tile Industry
Morbi is the Hub for the ceramic
tiles industry in the india and its
having 70% of unorganised units
of the ceramic business.
9. Major Players of Ceramic Tile in India….
Company Name Brand Market Share(%)
Kajaria Ceramics Kajaria 21%
H&R Johnson Marbonite 19%
Asian Granito India --- 10%
Somany Ceramics Greiti, Somany 9%
Murudeshwar Naveen Diamontile 4%
Ceramics
Regency Ceramic --- 4%
Bell Ceramics --- 4%
10. Global Scenario of The Industry:
Asia-Pacific represents the fastest growing market for ceramic tiles.
Asia-Pacific and Europe collectively account for more than 80%
share of the global market.
Top Five Global Players in Cermic Tile:
RAK Ceramics
Siam Cement Group
Ceramica Cleopatra Group
Lamosa Grupo
Marazzi Group
11. Global Scenario…….
Top 10 Manufacturing Countries
Tiles(Million Sq. Mtrs)
4200
753 550
400 387 375 366 287 245 220
12. Global Scenario…….
Top 10 Consumption Countries
Tiles(Million Sq. Mtrs)
3500
700 557 335 330 277 200 186 182 168
13. Global Scenario…….
Top 10 Exporting Countries
Tiles(Million Sq. Mtrs)
705
289 248
84 57 54 52 42 32 32
14. Global Scenario…….
Top 10 Importing Countries
Tiles(Million Sq. Mtrs)
130 129
103
80
59 57 48 43 39 38
15. Global Scenario…….
Top 10 Countries with Highest Per
Capita Consumption
(Figurs in Sq. Mtrs.)
12.1
6.71
4.4 3.76 3.64 3.14 2.82
2.61 2.45 2.35
16. Current Scenario-what is going on?
Market share of products
Market share (%)
42 Floor tiles
46
Vitrified and porceline tiles
Wall tiles
12
17. Ceramic tile industry is running in huge debt
•Increasing financial cost has been a major factor for profits
falling in the ceramic tiles industry
•Out of the 12 companies under review, almost eight
companies saw substantial increase in their interest cost while
two large ceramic tile makers saw their financial cost jump 2-5
times from a year ago level.
•Overall manufacturing expense increased by about 10%
•Other expenses including administrative and selling
expenses, power and fuel, went up 14% while employees
costs increased 12%
•Rising interest cost has also been adversely impacting the tile
makers. In FY’ 12 interest expenses increased 34% to Rs 340
crore
21. Construction industry growth boosting ceramic tiles industry
•industries will continue to display robust growth in 2012-13
given the spending promises of the government development
•Industry officials believe that 2012-13 would be able to see
the industry clock growth of 8-9%. Similarly, steel production
too will be supported by construction activity while a large
portion of the demand would emanate from automobile
industry.
22. Construction VS Ceramic products PAT
CONSTRUCTION INDUSTRY ceramic products
1423
1082 1055
891
698
567
373
193 182 163
114
70 68 48
2005 2006 2007 2008 2009 2010 2011
Source : CMIE
25. Evolution of digital technology
•Digital printing technology offers an opportunity to create
unique, same to same, high definition permanent images with
most desirable surface finish and feel. Technology can
successfully replicate images of
wood, marble, stone, metal, granite, glass wall paper, textiles from
silk to rough hessian and in huge color tones and gradients.
•New Digital Printing technology has changed the look of tile
industry. This technology can imprint the realistic image on tiles
with high clarity and design durability.
•Digital tiles is now becoming ceramic art for the walls. Created
based on principles and procedures similar to those used in graphic
art work, digitally printed tiles offer photo like high resolution
impressions on ceramic tiles
Water jet technology is already being used by few
companies, offering complex shapes like
circles, ovals, waves, floral patterns of different kind for floor décor
which is a reality now.
Nano technology is getting popular for vitrified tile flooring. Self
organizing Nano particles will form an invisible layer on the surface
with having excellent water/dust repellent, stain proof, anti-
bacterial properties, and retains rich surface finish for a long period
of time.
26. Latest trend in market with respect to floor and wall tiles
•Large Format Tiles continue to rise in popularity
•Skinny tiles
•Thinner tile for walls is future
•Wood look a like tiles are not new
•Tiles for kitchen
•3D Tiles without glasses
•For Floors, wide variety of vitrified tiles will be available
starting from basic salt & pepper technology to economical
soluble salt printing continuing with Lapata, high gloss-
polished, full mass products (MDR) multiple charged and
future with soluble salt printing, multicolor granular products
in polished and honed finish, rustic stone effect tiles, glazed
vitrified tiles in popular sizes of
60x60cm, 80x80cm, 1mtrx1mtr will rule the tile market in
India. Italy and Spain have lost their rank in world
race,but will continue to lead the world as innovators for
world ceramics.
27. What is cladding?
Cladding is a concept which is picking up in the market. Tiles
which appear to look like any natural stone are used for cladding
on exterior walls and mostly on lobby areas too. In future there
will be lot more of buildings which will have cladding Places like
China uses Tiles for cladding of Buildings.
28. Tiles as option above other substitute
•Today tiles are used in larger quantities and for almost every
other project.
•Tiles are man-made and easy to lay and maintain.
•They come in various patterns and textures which a natural
product may fail to provide.
•Natural products will not be available as per your design.
•There will always be limitations with regard to the colours and
designs.
•Natural products like granite, marble requires lot of treatment like
cutting, polishing, laying etc.
• The process is more time consuming as it takes15 days for
marble to set,
•whereas tiles take only 48 hours.
•In the long run, there might be a higher possibility of scarcity of
natural resources.
• Since tiles are man-made, it is easily available. These are some
of the key reasons to choose tiles over other natural products.
29. Big companies increasing theire market presence through
alliance, merger and takeover and production capacity
expansion
•Recently , Asian tiles merged with Asian Granito (I) ltd, another
big merger was of H&R Johnson Ltd merged with Prism Cements
Ltd, and last but one of important merger was of Orient ceramics
and Bell Ceramics Ltd.
•Somani Ceramics has recently announced that they are going to
invest 100 cr in next three years for enhancing its production
facility.they have recently bought 26% stake in commander
vitrified company as well as , has formed a marketing and
distribution alliance with Italy's IRIS Ceramiche
•Another big company Kajaria ceramics has acquired majority
stake in Vennar ceramics. They have also bought majority stake
in Jaxx vitrified tiles company.
•Biggest company in ceramic industry in the world, RAK ceramics
is going to establish manufacturing facility in gujarat with an
investment of Rs500 cr by mid 2012
•Chinese and Italian companies have opened offices in
Morbi, Gujarat to provide after sales services to the ceramic
industry
30. INDUSTRY PROFILE AND ATTRACTIVENESS
Key success factors in ceramic tiles industry
•First KSF in ceramic industry is manufacturing process
•Second KSF is Technology being used in the industry
•Digital printing
•Water inject technology
•Nano technology
•Third KSF is promotion and dealers network in industry
31. Industry driving forces
Production
Low per capita consumption:
Shift towards Vitrified tiles
Growing urbanization:-
Housing Shortage
Growing Middle Class
Commercial Real Estate
Airport Modernization:
Hospitality sector:
Healthcare sector
32. 4P’s of Indian Ceramic Tile Industry:
Product :
Types of Tiles:
•Ceramic Wall Tiles
•Ceramic Floor Tiles
•Vitrified Tiles
•Porcelain Tiles
•Glazed Tiles
•As world’s 3rd largest producer of tiles, the variety of the tile
product are available in the market
•For kitchen, wall décor, small size tiles, with attractive patterns
can be seen in wide range of colors, sizes, are there in the market.
•From the blue pottery tiles to tiny types with custom décor, crafted
hand cut stones, glass tiles, and large format tiles by organized
sectors are available.
33. Place….
Gujarat has a highly developed ceramics industry concentrated in
the Morbi, Wankaner, Thangadh, Bamanbor, Shapar-Veraval areas
in Rajkot district. The industry has a turnover os around Rs.
10000 Crore per annum in the state.
These areas in the Sauarashtra region are rich in red
soil(fire clay), which is the raw material for the ceramic
industry. In addition, raw materials such as volestonite and
feldspar are acquired from mines in Bikaner an Jaipur.
Powder used in the industry comes from the Pune and
Udaipur. Fuel Gas is supplied from the porbandar
34. Promotion…
•Many ceramic companies in Gujarat have launched online portals to directly come
in contact with customers. Visitors of the site can customize the designs at their will
and order a sample of the tile before buying it.
•Big players like Asian Granito, Kajaria, have already established their brand show
rooms at the big cities of the selected states to display theirs products and directly
reach to their customers. Recently, Orient Ceramic have open their show rooms in
Andhra Pradesh in Feb-2011. After successful launches in Uttarakhand, Assam,
Kerala, Chhattisgarh. Delhi, Hariyana, Rajasthan, Punjab and UT’s and Chandigarh.
(Source: BS_23_May_2011)
•Somany Ceramics had decided to revise its plan of opening retail stores in the
country. It was earlier planning to open 60-65 retails store but now it will go ahead
with 50 strores. (Souce:BS_18_Aug_2011)
35. Price…
Though Indian ceramic industry is the facing pricing war from China, our price is reasonably
low in premium market like Europe , Canada and US. Only things we need is proper sales
networks in this market.
The prices of the Morbi based ceramic products have hiked prices by 12%
with gas and other raw material prices rising continuously at the time
rising coupled with lower demand plaguing the industry and the rise in
RM prices had added further woes. (source: BS_08_June_2012)
36. PORTER’S FIVE FORCES ANALYSIS
1 = Low 3= Moderate and 5=High
Sr. No Factor weight Rates Total
1 The existence of barriers to entry 0.15 4 0.6
2 Economies of product differences 0.15 2 0.3
3 Brand equity 0.1 4 0.4
4 Capital requirements 0.1 4 0.4
6 Access to distribution 0.2 4 0.8
7 Customer loyalty to established brands 0.1 2 0.2
8 Absolute cost 0.1 4 0.4
9 Industry profitability 0.1 3 0.3
TOTAL: 1 3.4
•Threats For New Entrants :
Interpretation:
From the above factors it can be said that the threats of new entrance in the market of ceramic industry is
3.4 which is slightly higher than the moderate. The presence scenario of the industry tells that the big
company such as Somany Ceramics and Kajaria Ceramics are increasing their market share by acquisition
of the small units and due to high cost have prevented new entrance for next two year no new entries are
coming in the markets
37. Sr. Factor weight Rates Total
No
1 Switching cost of buyer 0.1 4 0.4
2 Size of purchase 0.05 3 0.15
3 No of buyer 0.15 3 0.45
4 Information Availability 0.15 2 0.3
5 Quality Buying 0.1 3 0.3
6 Capacity to backward 0.05 2 0.1
integration
7 Emergency of buying 0.15 2 0.3
8 Pricing 0.1 3 0.3
9 Availability of substitute 0.15 4 0.6
products
•Bargaining Power TOTAL:
of Buyers: 1 2.9
Interpretation:
From the above factors we can conclude that the bargaining power of buyer are near to moderate.
The present scenario of buyers demand is changing relatively big size tiles are now in fashion as
customers are making now their home look aesthetics and giving it a luxurious and the per capita
consumption of ceramic tile in india is low and boom in housing market has boosted the demand for
ceramic tiles.
38. Sr. No Factor weight Rates Total
1 Suppliers Switching cost 0.2 4 0.8
2 Impact of inputs on cost 0.1 4 0.4
3 Strength of distribution channel 0.2 5 1
4 Supplier competition 0.15 4 0.6
5 Presence of substitute inputs 0.2 4 0.8
6 Labor unions 0.15 2 0.3
TOTAL: 1 3.9
•Bargaining Power of Suppliers :
Interpretation:
From the above details we can conclude that the bargaining power are neat to high. Because
of their shortage of the raw such as Feldspar & Quartzs are being exported to the other
countries as well as raw material cost of such as Zirconium and Titanium are rising and by
this way the overall bargaining power of supplier is higher in the industry.
39. Sr. Factor weight Rates Total
No
1 Buyer propensity to 0.15 4 0.6
substitute
2 Relative price performance 0.1 3 0.3
of substitute
3 Buyer switching costs 0.2 3 0.6
4 product differentiation 0.2 3 0.6
5 Presence of substitute 0.2 5 1
products
6 Product Quality 0.15 4 0.6
TOTAL: 1 3.7
•Threats from Substitute Product :
Interpretation
From the above factors we can conclude that the threats of substitute product is moderate to high, but
the ceramic tiles are man maid and easy to lay and maintain. They come in various textures and
patterns which natural products such as marbles and stones, granite fails to provide. Natural product
require the lot of treatment like cutting, polishing and laying etc.. The process is time consuming and
it takes 15 days marble to set, where as tiles take only 48 hours. In the long run there might be
scarcity of natural resources.
40. Sr. Factor weight Rates Total
No
1 Competitive advantage 0.2 4 0.8
2 Competition between online 0.1 2 0.2
and offline companies
3 Level of advertising expense 0.15 3 0.45
4 Powerful competitive 0.2 4 0.8
strategy
5 Research and development 0.15 4 0.6
6 Product Differentiation 0.2 4 0.8
TOTAL: 1 3.65
•Rivals from Existing Players :
Interpretation:
From the above factors we can conclude that the rivalry among the existing firms is moderate to high.
As per present scenario the big companies such as Orient Ceramics has merged with Bell Ceramics
Ltd., another big player H&R Johnson (I) Ltd. Has merged with Prisam Cements Ltd., Asian Tile has
merged with Asian Granito (I) ltd. And companies like Somany Tiles and Kajaria Tiles are acquiring
the small units to increase their market presence. The industry has very few such as 16 Organized
players and rest of the industry is fragmented and unorganized industry in inda.
41. OPPORTUNITIES
•Tile, Ceramic & Sanitaryware Industry to grow 20% in short run in India
•Urbanites prefer tiled floors, rural folks catching up quickly
•Global Ceramic Tiles Market to Reach 92.78 Billion Square Feet by 2015,
•ICCTAS asked government to include ceramic tiles industry in priority sector list under
Natural Gas Utilisation Policy and Allocation of Natural Gas, he added.
•Growth in the domestic construction industry is driving demand for ceramics
•Rising population
•Burgeoning middle-class:
•Low per capita consumption
•Growing urbanisation
•Affordable housing
•Commercial real estate
•Retail sector growth
•Hospitality
•Aviation sector:
•With the government three years back imposing antidumping duty on Chinese imports for
another five years
•The GST is expected to be rolled out from the next fiscal and will replace a plethora of state
levies and central levies with a one tax. This would help create a national market.
Bharat Nirman:
The Build India government initiative expects to build world-class infrastructure across rural
land areas.
42. THREATS
•It has been observed that dumping of tiles from China is the biggest
problem of the industry. An anti-dumping investigation concluded in
2003 has also confirmed this problem and levied anti-dumping duty
of US $ 8.28 per sq.mt on vitrified ceramic tiles imported from China
•Imports and the unorganized tile sector are the major threat to the
Indian tile market. Freight, power and gas are the key cost-related
issues impacting the industry
•Copying of Tile designs is also a threat for the business resulting in
undue loss to the Company
•For some time now, Indian ceramic tile manufacturers are besieged
with the problem of low margin and falling profitability. According to
industry sources, one of the reasons behind this scenario is the
dumping of vitrified tiles into Indian market by countries such as
China, Indonesia, Sri Lanka, Malaysia and UAE.
43. •an on export of Feldspar & Quartz from India
•Another major problem of the industry is the rising cost of
manufacturing due to increase in prices of raw materials
such as zirconium and titanium
44. • Lack of natural gas facility and arrangements for natural gas
facilities as well as rising cost of the gas facilities keeping
profitability low
•Imports are higher
400
366.6
348.3
350
313
300 283.4
250
200 188.2
Exports
Imports
150
110.2
100
59.1
40.5 39.9 40.1 49.1 49.4
50
0
0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Source: CMIE
45. The prices of the Morbi based ceramic products have hiked prices by 12%
with gas and other raw material prices rising continuously at the time rising
coupled with lower demand plaguing the industry and the rise in RM prices had
added further woes. (source: BS_08_June_2012)
46. PEST ANALYSIS:
Particulars Weights Rates Total
ecological or environmental 0.10 2 0.20
issues
current legislation home market 0.10 2 0.20
regulatory bodies and processes 0.10 2 0.20
government policies 0.20 2 0.40
government term and change 0.10 2 0.20
trading policies 0.10 3 0.30
funding, grants and initiatives 0.10 4 0.40
home market lobbying or 0.10 3 0.30
pressure groups
international pressure groups 0.10 4 0.40
TOTAL 1.00 2.60
•Political Factor :
NOTE : 1=Unfavorable & 5= Favorable
Interpretation:
From the above data we can conclude that political factors are moderately unfavorable to the industry as the present
governments export import polices regarding dumping production from China to India. There environment protection
law are not favoring the industry and the pressure from the players such as RAK Ceramics and Chinese players are
increasing.
47. Particulars weights Rates Total
home economy situation 0.10 4 0.40
home economy trends 0.10 4 0.40
overseas economies and trends 0.05 4 0.20
general taxation issues 0.10 4 0.40
taxation specific to product or 0.10 4 0.40
services
seasonality or weather issues 0.10 2 0.20
market and trade cycles 0.10 2 0.20
market routes and distribution 0.10 2 0.20
trends
client or end-user drivers 0.10 2 0.20
interest and exchange rates 0.10 3 0.30
international trade or monetary 0.05 3 0.15
issues
TOTAL
•Economical Factor : 1.00 3.05
Interpretation:
From the above data we can conclude that the Economical condition in to the country is moderately
favorable to the ceramic tiles industry. As Indian economy is growing at around 5 to 6 percentage. The
interest rates are favorable, the employment in the economy is increasing and disposable income of the
customer is increasing and energy availability is increasing but at the higher cost.
48. Particulars weights Rates Total
lifestyle trends 0.10 4 0.40
demographics changes 0.10 4 0.40
consumer attitudes and 0.10 4 0.40
opinions
media views 0.10 3 0.30
consumer buying patterns 0.10 4 0.40
fashion and role models 0.10 4 0.40
buying access and trends 0.10 4 0.40
ethnic or religious factors 0.10 3 0.30
advertising and publicity 0.10 3 0.30
ethical issues 0.10 3 0.30
TOTAL 1.00 3.60
•Social Factor :
Interpretation:
From the above data we can conclude that the social condition of the Indian population is more near to favorable as their
need and the trends are changing. The demand for housing is increasing. The standard of living in metro cities and semi
urban areas and rural area is increasing, which is positive sign for India ceramic tile industry.
49. Particulars weights Rates Total
competing technology 0.10 3 0.30
development
research funding 0.10 2 0.20
associated or dependent 0.10 2 0.20
replacement technology or 0.10 2 0.20
solutions
maturity of technology 0.10 3 0.30
information and 0.10 4 0.40
communications
consumer buying mechanisms 0.10 4 0.40
or technology
technology legislation 0.05 3 0.15
innovation potential 0.10 3 0.30
technology access, licensing, 0.10 3 0.30
patents
•Technological Factors :
Interpretation: intellectual property issues 0.05 3 0.15
From the above data we can conclude that the technological factors are moderately unfavorable to the ceramic tiles
TOTAL 1.00 2.90
industry. The manufacturing process used in Indian ceramic tile industry is highly energy driven as well as the cost
of fuel and gas is increasing from the cost point of view. The digital printing is the new technology introduce into
the Indian ceramic tile industry. Other Technology such as Nano Techology, Waterjet Techology are also becoming
favorite and being adopted by the Indian players. Cladding is the also making its presence in India.
50. Industry life cycle:
Every industry passes through different stages in its life time. The stages can be identified
as follows.
•Pioneering stage( Introduction)
•Expansion Stage(Growth)
•Stagnation Stage(Maturity)
•Decay Stage( Decline)
Particulars Pioneering Stage Expansion Stage Stagnation Stage Decay Stage
Sales Low sales Rapidly rising Pick sales Declining sales
Cost High Cost Per Average Cost Low Cost Per Low Cost Per
Customer Customer Customer
Profits Negative Rising High Profits Declining Profits
Customers Innovators Early Adaptors Middle Majority Laggards
Competitors Few Growing Numbers Stable Number Declining
Beginning To
Decline
54. Customers:
•In India, tiles give aesthetic look to the house. Today flooring has become an
important element of home aesthetic. People cannot compromise on the aesthetic
part. Customer value the importance of flooring and ceramic material.
•Theme houses are made by people nowadays for example Haveli, palaces especially
people residing in metro cities, and semi urban cities. The kind of tiles gives a feel and
keeping the various aesthetic ambience in mind.
We can can say customer are changing their choices towards big size tiles and
products specifications are changing as per the demands. Other demands are also
growing from hospitality, health care, constructions and air ports.
competitors
The Indian tile industry is divided into organized and unorganized sector. The organized sector
comprises of approximately 14 players. The current size of the organized sector is about Rs.
7,200 Crores. The unorganized sector accounts for nearly 60% of the total industry bearing
testimony of the growth potential of this sector.
Only few organized players prevail in the market, the industry has fragmented players. only big
players are able to be profitable in the market because of the rising costs in to the market , big
companies such as Somany ceramics and Asian Granito are acquiring stakes into small
companies to increasing their market presence.
55. Conclusion
From the above discussion it can be concluded that, the sales are
though showing sluggish ternd in present but it has potential to rise in
future, so as the efforts can be made to reduce the costs of the industry.
Profits are also going to show positive signs in future. There is also going
to be growing demand in the future and no of competitors are also few
and highly fragmented. So industry is somewhere between pioneering to
expansion stage, more close to expansion stage.
57. 9 Cell Matrix of competitors
7
6
5 Kajaria Ceramics Ltd.
Product Quality
H & R Johnson (India) Ltd.
4 [Merged]
Somany Ceramics Ltd.
3
Asian Granito India Ltd.
2 Nitco Ltd.
1 Orient Ceramics & Inds. Ltd.
0
0 2 4 6 8
other KSF
58. Raw Materials consumed percentage of PBITD
1200.0
1000.0
Industry
800.0
Kajaria
Prism
600.0 Somany
Asian
400.0 Orient Bell
Nitco
Murudeshwar
200.0
0.0
2012 2011 2010 2009 2008 2007 2006 2005 2004 2003
Source: www.aceanyalyzer.com
59. Power & Fuel Cost Percentage of PBITD
400
350
300
Industry
250 Kajaria
Prism
200 Somany
Asian
150 Orient Bell
Nitco
100 Murudeshwar
50
0
2003 2004 2005 2006 2007 2008 2009 2012
Source: www.aceanyalyzer.com
60. Employee Cost Percentage of PBITD
140.00
120.00
100.00
Industry
Kajaria
80.00 Prism
Somany
60.00 Asian
Orient Bell
40.00 Nitco
Murudeshwar
20.00
0.00
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: www.aceanyalyzer.com
61. Manufacturing Expenses Percentage og PBITD
250.00
200.00
Industry
Kajaria
150.00
Prism
Somany
Asian
100.00
Orient Bell
Nitco
Murudeshwar
50.00
0.00
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: www.aceanyalyzer.com
62. Interest as percentage of PBITD
140.00
120.00
100.00 Industry
Kajaria
80.00 Prism
Somany
60.00 Asian
Orient Bell
40.00
Nitco
Murudeshwar
20.00
0.00
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: www.aceanyalyzer.com
63. PAT
500
400
Industry
300
Kajaria
Prism
Somany
200
Asian
Orient Bell
Nitco
100
Murudeshwar
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
-100
64. Name Asian Prism Soma Kajari orient nitco Regen Euro AVERA
of the Granit ceme ny a bell Ltd cy ceram GE
comp o nts ceram ceram ceram ceram ics
any India ics ics ics ics
PE 5.36 - 5.23 15.52 4.3 0 0 1.36 -
85.12 6.6687
5
PBV 0.4 -2.22 21.86 4.44 0.6 0.3 -1.8 0.25 2.9787
5
ROE 7.79 -2.55 1.04 32 15.8 -10.9 - 20.54 -
317.7 31.747
5
DY 2.18 0.99 2.13 1.47 2.8 0 0 0 1.1962
5
Source: www.aceanyalyzer.com
65. Nitco Ltd.
Asian
PE
PE 10
10 0
0 -10
-10 -20
-20 Asian Granito -30 nitco Ltd
-30 India DY -40 PBV
DY -40 PBV AVERAGE
AVERAGE
ROE ROE
Kajaria
40
PE
Somany
20
PE
0 40
-20 20
Kajaria ceramics 0 Somany
DY -40 PBV
AVERAGE -20 ceramics
DY -40 PBV
AVERAGE
ROE ROE