SlideShare ist ein Scribd-Unternehmen logo
1 von 65
Strategic Analysis
              of
     Indian Ceramic Tile
           Industry
Presenting by :
Shakti Dodiya     M- 7874177418
Hemant Hadiel     M- 9723664224
Shoeb Sheikh      M-9067949799    [   90
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
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
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
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
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
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
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.
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%
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
Global Scenario…….
           Top 10 Manufacturing Countries

                     Tiles(Million Sq. Mtrs)
    4200




           753 550
                   400 387 375 366 287 245 220
Global Scenario…….

           Top 10 Consumption Countries
                       Tiles(Million Sq. Mtrs)
    3500



           700   557   335   330   277   200     186   182   168
Global Scenario…….

                Top 10 Exporting Countries
                       Tiles(Million Sq. Mtrs)
    705



          289    248
                       84   57     54    52      42   32   32
Global Scenario…….

               Top 10 Importing Countries
                     Tiles(Million Sq. Mtrs)
   130   129
               103
                     80
                          59     57     48     43   39   38
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
Current Scenario-what is going on?
Market share of products

               Market share (%)




          42                      Floor tiles
                      46
                                  Vitrified and porceline tiles
                                  Wall tiles




               12
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
Source: www.infrawindow.com
Source: www.infrawindow.com
Source: www.infrawindow.com
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.
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
Source: www.infrawindow.com
Construction material, equipment output increasing beneficial to ceramic tiles
industry
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.
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.
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.
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.
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
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
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
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.
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
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)
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)
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
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.
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.
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.
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.
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.
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.
•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
• 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
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)
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.
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.
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.
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.
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
Trend SALES (Base year:2004)
400.00
                              374.76
350.00
                     328.02            336.34
            314.04
300.00
                                                                                              trend (Base
250.00                                                                                        year:2004)
                                                216.14
200.00
                                                         168.32
150.00
                                                                  134.32 127.59
100.00                                                                               100.00

 50.00

  0.00
         2012   2011   2010     2009     2008     2007     2006     2005          2004




                       Source: www.aceanyalyzer.com
Trend PAT (Base year:2004)
350.00

                 316.49
300.00


250.00

                       211.76
200.00
                             190.95194.12194.26

                                                                  trend (Base year:2004)
150.00                                        152.36
                                                    135.00
            114.32
100.00                                                   100.00


 50.00


  0.00
         2012 2011 2010 2009 2008 2007 2006 2005 2004



                     Source: www.aceanyalyzer.com
Trend Costs (Base year:2004)
450.00

400.00                        397.53
                                       365.83
350.00               342.88
            333.05
300.00

250.00
                                                226.39
200.00                                                                                     trend (Base year:2004)
                                                         173.10
150.00
                                                                  137.36 130.46
100.00                                                                            100.00

 50.00

  0.00
         2012   2011   2010     2009     2008     2007     2006     2005   2004




                       Source: www.aceanyalyzer.com
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.
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.
Competitors Analysis
                                            H&R
                                                                                                        Orient
 Key success                 Kajaria       Johnson         Somany        Asian Granito
                 weight                                                                  Nitco Ltd.   Ceramics &
    factor                Ceramics Ltd.   (India) Ltd.   Ceramics Ltd.    India Ltd.
                                                                                                      Inds. Ltd.
                                           [Merged]
Quality/
product          0.10         0.50           0.40            0.50            0.50          0.60         0.40
performanc
Image            0.10         0.80           0.70            0.60            0.60          0.70         0.40

Manufacturin
                 0.10         0.80           0.80            0.80            0.70          0.60         0.50
g capabilities

Technological
                 0.05         0.30           0.30            0.30            0.30           0.3         0.30
skills
Dealer
                 0.05         0.45           0.30            0.35            0.35          0.40         0.20
network
New product
innovation       0.05         0.20           0.15            0.35            0.30          0.30         0.10
capabilities
Financial
                 0.10         0.80           0.70            0.70            0.80          0.60         0.30
Resources
Relative cost
                 0.30         1.80           1.80            1.80            1.80          1.80         1.80
position
Customer
service          0.15         0.90           0.75            0.75            0.90          1.05         0.60
capabilities
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
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
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
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
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
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
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
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
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

Weitere ähnliche Inhalte

Was ist angesagt?

Bajaj electricals
Bajaj electricals Bajaj electricals
Bajaj electricals Amish Narang
 
ppt on cement industry in india
ppt on cement industry in indiappt on cement industry in india
ppt on cement industry in indiajs slides
 
Asian Paints Company Industry SWOT Analysis
Asian Paints Company Industry SWOT AnalysisAsian Paints Company Industry SWOT Analysis
Asian Paints Company Industry SWOT Analysisnagaraj007
 
Cement industry in india
Cement industry in india Cement industry in india
Cement industry in india Abhinav Kp
 
Strategic Management of Tata Steel
Strategic Management of Tata SteelStrategic Management of Tata Steel
Strategic Management of Tata SteelArkadip Gupta
 
NVIDIA Supply Chain Finance CAPSTONE
NVIDIA Supply Chain Finance CAPSTONENVIDIA Supply Chain Finance CAPSTONE
NVIDIA Supply Chain Finance CAPSTONEParam Parikh
 
Business model of TATA Consultancy Services
Business model of TATA Consultancy ServicesBusiness model of TATA Consultancy Services
Business model of TATA Consultancy ServicesMathan Anto Marshine
 
Tiscon Ready Build Standing Tall On Dreams
Tiscon Ready Build Standing Tall On DreamsTiscon Ready Build Standing Tall On Dreams
Tiscon Ready Build Standing Tall On DreamsTiscon Readybuild
 
ceramic industry morbi presentation by Bhavikkhakhkhar
ceramic industry morbi presentation by Bhavikkhakhkharceramic industry morbi presentation by Bhavikkhakhkhar
ceramic industry morbi presentation by BhavikkhakhkharBhavik khakhkhar
 
Core competency copy
Core competency   copyCore competency   copy
Core competency copyArsh Dhillon
 
Asian paint final ppt
Asian paint final pptAsian paint final ppt
Asian paint final pptNikhil Hulwan
 
Analysis of indian wood panel industry and company analysis of greenply indus...
Analysis of indian wood panel industry and company analysis of greenply indus...Analysis of indian wood panel industry and company analysis of greenply indus...
Analysis of indian wood panel industry and company analysis of greenply indus...Abhijeet Agarwal
 
Borosil company presentation
Borosil company presentationBorosil company presentation
Borosil company presentationShubhamDubey192
 
A STUDY OF JSW – AN INDIAN STEEL MANUFACTURING COMPANY
A STUDY OF JSW – AN INDIAN STEEL MANUFACTURING COMPANYA STUDY OF JSW – AN INDIAN STEEL MANUFACTURING COMPANY
A STUDY OF JSW – AN INDIAN STEEL MANUFACTURING COMPANYKushal Shah
 
Tata motors limited
Tata motors limitedTata motors limited
Tata motors limitedmadinvgsom
 
MBA Asian paints porject
MBA Asian paints porjectMBA Asian paints porject
MBA Asian paints porjectAchut B Roogi
 

Was ist angesagt? (20)

Bajaj electricals
Bajaj electricals Bajaj electricals
Bajaj electricals
 
ppt on cement industry in india
ppt on cement industry in indiappt on cement industry in india
ppt on cement industry in india
 
Tata Motors
Tata MotorsTata Motors
Tata Motors
 
Asian Paints Company Industry SWOT Analysis
Asian Paints Company Industry SWOT AnalysisAsian Paints Company Industry SWOT Analysis
Asian Paints Company Industry SWOT Analysis
 
Cement industry in india
Cement industry in india Cement industry in india
Cement industry in india
 
Strategic Management of Tata Steel
Strategic Management of Tata SteelStrategic Management of Tata Steel
Strategic Management of Tata Steel
 
NVIDIA Supply Chain Finance CAPSTONE
NVIDIA Supply Chain Finance CAPSTONENVIDIA Supply Chain Finance CAPSTONE
NVIDIA Supply Chain Finance CAPSTONE
 
CONSUMER DURABLES
CONSUMER DURABLESCONSUMER DURABLES
CONSUMER DURABLES
 
Asian paint ppt
Asian paint pptAsian paint ppt
Asian paint ppt
 
Business model of TATA Consultancy Services
Business model of TATA Consultancy ServicesBusiness model of TATA Consultancy Services
Business model of TATA Consultancy Services
 
7P's Of Kajaria Tiles
7P's Of Kajaria Tiles 7P's Of Kajaria Tiles
7P's Of Kajaria Tiles
 
Tiscon Ready Build Standing Tall On Dreams
Tiscon Ready Build Standing Tall On DreamsTiscon Ready Build Standing Tall On Dreams
Tiscon Ready Build Standing Tall On Dreams
 
ceramic industry morbi presentation by Bhavikkhakhkhar
ceramic industry morbi presentation by Bhavikkhakhkharceramic industry morbi presentation by Bhavikkhakhkhar
ceramic industry morbi presentation by Bhavikkhakhkhar
 
Core competency copy
Core competency   copyCore competency   copy
Core competency copy
 
Asian paint final ppt
Asian paint final pptAsian paint final ppt
Asian paint final ppt
 
Analysis of indian wood panel industry and company analysis of greenply indus...
Analysis of indian wood panel industry and company analysis of greenply indus...Analysis of indian wood panel industry and company analysis of greenply indus...
Analysis of indian wood panel industry and company analysis of greenply indus...
 
Borosil company presentation
Borosil company presentationBorosil company presentation
Borosil company presentation
 
A STUDY OF JSW – AN INDIAN STEEL MANUFACTURING COMPANY
A STUDY OF JSW – AN INDIAN STEEL MANUFACTURING COMPANYA STUDY OF JSW – AN INDIAN STEEL MANUFACTURING COMPANY
A STUDY OF JSW – AN INDIAN STEEL MANUFACTURING COMPANY
 
Tata motors limited
Tata motors limitedTata motors limited
Tata motors limited
 
MBA Asian paints porject
MBA Asian paints porjectMBA Asian paints porject
MBA Asian paints porject
 

Andere mochten auch

Tiles industry in India
Tiles industry in IndiaTiles industry in India
Tiles industry in IndiaVikram Dahiya
 
Business plan for ceramic company
Business plan for ceramic companyBusiness plan for ceramic company
Business plan for ceramic companyProtul Mahbub
 
Bell Ceramics project rport on ceramic tiles(gaurav UBS ,chandigarh 2011)f
Bell Ceramics project rport on ceramic tiles(gaurav UBS ,chandigarh 2011)fBell Ceramics project rport on ceramic tiles(gaurav UBS ,chandigarh 2011)f
Bell Ceramics project rport on ceramic tiles(gaurav UBS ,chandigarh 2011)froyals0007
 
38244892 ppt-of-kajaria2
38244892 ppt-of-kajaria238244892 ppt-of-kajaria2
38244892 ppt-of-kajaria2Ajeet Gupta
 
Manufacturing process of tiles
Manufacturing process of  tilesManufacturing process of  tiles
Manufacturing process of tilesNishant Sinha
 
Manufacturing Process Of Ceramic Tiles
Manufacturing Process Of Ceramic TilesManufacturing Process Of Ceramic Tiles
Manufacturing Process Of Ceramic TilesNitendra Kumar Singh
 
Customer satisfaction at ananta granites project report mba marketing
Customer satisfaction at ananta granites project report mba marketingCustomer satisfaction at ananta granites project report mba marketing
Customer satisfaction at ananta granites project report mba marketingBabasab Patil
 
Manufacturing process of ceramic tiles
Manufacturing process of ceramic tilesManufacturing process of ceramic tiles
Manufacturing process of ceramic tilesVamsi Krishna
 
kajaria Ceramics
kajaria Ceramicskajaria Ceramics
kajaria Ceramicsvignesh SBK
 
Flat Glass Industry Analysis
Flat Glass Industry AnalysisFlat Glass Industry Analysis
Flat Glass Industry AnalysisMihir Kumar
 
Somany Ceramics - Corporate presentation
Somany Ceramics - Corporate presentationSomany Ceramics - Corporate presentation
Somany Ceramics - Corporate presentationAnuoluwapo Oluwakunle
 
Ceramic tiles
Ceramic tilesCeramic tiles
Ceramic tilesSam
 
Presentation On Tiles
Presentation On TilesPresentation On Tiles
Presentation On TilesEnamul Nasir
 
Business Plan Powerpoint 1
Business Plan Powerpoint 1Business Plan Powerpoint 1
Business Plan Powerpoint 1haleydawn
 

Andere mochten auch (20)

Tiles industry in India
Tiles industry in IndiaTiles industry in India
Tiles industry in India
 
Business plan for ceramic company
Business plan for ceramic companyBusiness plan for ceramic company
Business plan for ceramic company
 
Bell Ceramics project rport on ceramic tiles(gaurav UBS ,chandigarh 2011)f
Bell Ceramics project rport on ceramic tiles(gaurav UBS ,chandigarh 2011)fBell Ceramics project rport on ceramic tiles(gaurav UBS ,chandigarh 2011)f
Bell Ceramics project rport on ceramic tiles(gaurav UBS ,chandigarh 2011)f
 
38244892 ppt-of-kajaria2
38244892 ppt-of-kajaria238244892 ppt-of-kajaria2
38244892 ppt-of-kajaria2
 
Kajaria tiles
Kajaria tilesKajaria tiles
Kajaria tiles
 
Manufacturing process of tiles
Manufacturing process of  tilesManufacturing process of  tiles
Manufacturing process of tiles
 
Manufacturing Process Of Ceramic Tiles
Manufacturing Process Of Ceramic TilesManufacturing Process Of Ceramic Tiles
Manufacturing Process Of Ceramic Tiles
 
Customer satisfaction at ananta granites project report mba marketing
Customer satisfaction at ananta granites project report mba marketingCustomer satisfaction at ananta granites project report mba marketing
Customer satisfaction at ananta granites project report mba marketing
 
Tiles presentation
Tiles presentationTiles presentation
Tiles presentation
 
Manufacturing process of ceramic tiles
Manufacturing process of ceramic tilesManufacturing process of ceramic tiles
Manufacturing process of ceramic tiles
 
Tiles presentations
Tiles presentationsTiles presentations
Tiles presentations
 
kajaria Ceramics
kajaria Ceramicskajaria Ceramics
kajaria Ceramics
 
Ceramics
CeramicsCeramics
Ceramics
 
Flat Glass Industry Analysis
Flat Glass Industry AnalysisFlat Glass Industry Analysis
Flat Glass Industry Analysis
 
Porter's 5 Force Model
Porter's 5 Force ModelPorter's 5 Force Model
Porter's 5 Force Model
 
Somany Ceramics - Corporate presentation
Somany Ceramics - Corporate presentationSomany Ceramics - Corporate presentation
Somany Ceramics - Corporate presentation
 
Ceramic tiles
Ceramic tilesCeramic tiles
Ceramic tiles
 
Presentation On Tiles
Presentation On TilesPresentation On Tiles
Presentation On Tiles
 
Business Plan Powerpoint 1
Business Plan Powerpoint 1Business Plan Powerpoint 1
Business Plan Powerpoint 1
 
Gs sand stone tiles
Gs sand stone tilesGs sand stone tiles
Gs sand stone tiles
 

Ähnlich wie Strategic analysis of indian ceramic tiles indusry

How to Start a Mini Cement Plant. Cement Manufacturing Industry. Cement Busin...
How to Start a Mini Cement Plant. Cement Manufacturing Industry. Cement Busin...How to Start a Mini Cement Plant. Cement Manufacturing Industry. Cement Busin...
How to Start a Mini Cement Plant. Cement Manufacturing Industry. Cement Busin...Ajjay Kumar Gupta
 
Market Research Report : Foundry Market in India 2012
Market Research Report : Foundry Market in India 2012Market Research Report : Foundry Market in India 2012
Market Research Report : Foundry Market in India 2012Netscribes, Inc.
 
Global Countertop Demand is forecast to rise 2.3% yearly through 2021: Manufa...
Global Countertop Demand is forecast to rise 2.3% yearly through 2021: Manufa...Global Countertop Demand is forecast to rise 2.3% yearly through 2021: Manufa...
Global Countertop Demand is forecast to rise 2.3% yearly through 2021: Manufa...Ajjay Kumar Gupta
 
Paint Manufacturing Industry - Market Survey cum Detailed Techno Economic Fea...
Paint Manufacturing Industry - Market Survey cum Detailed Techno Economic Fea...Paint Manufacturing Industry - Market Survey cum Detailed Techno Economic Fea...
Paint Manufacturing Industry - Market Survey cum Detailed Techno Economic Fea...Ajjay Kumar Gupta
 
May 2010 AIVtech Investor Presentation
May 2010 AIVtech Investor PresentationMay 2010 AIVtech Investor Presentation
May 2010 AIVtech Investor PresentationGeoInvesting LLC
 
Consumer durables
Consumer durablesConsumer durables
Consumer durablesjobhi
 
Industrial sector of Pakistan
Industrial sector of PakistanIndustrial sector of Pakistan
Industrial sector of Pakistanfarazishaque
 
Industrial sector of Pakistan
Industrial sector of PakistanIndustrial sector of Pakistan
Industrial sector of Pakistanfarazishaque
 
Industrial Sector of Pakistan
Industrial Sector of PakistanIndustrial Sector of Pakistan
Industrial Sector of Pakistanshobia
 
Industrial sector of Pakistan
Industrial sector of PakistanIndustrial sector of Pakistan
Industrial sector of Pakistanfarazishaque
 
Apimec sul - 3 q10
Apimec sul - 3 q10Apimec sul - 3 q10
Apimec sul - 3 q10Eternit S.A.
 
Conference_20130305_Ivo Zander
Conference_20130305_Ivo ZanderConference_20130305_Ivo Zander
Conference_20130305_Ivo ZanderNordic Innovation
 
Conference call 2 q12 inglês
Conference call 2 q12   inglêsConference call 2 q12   inglês
Conference call 2 q12 inglêsEternit S.A.
 
Conference call 2 q12 inglês1408
Conference call 2 q12   inglês1408Conference call 2 q12   inglês1408
Conference call 2 q12 inglês1408Eternit S.A.
 

Ähnlich wie Strategic analysis of indian ceramic tiles indusry (20)

ATS Company Reports: Asian granito
ATS Company Reports: Asian granitoATS Company Reports: Asian granito
ATS Company Reports: Asian granito
 
How to Start a Mini Cement Plant. Cement Manufacturing Industry. Cement Busin...
How to Start a Mini Cement Plant. Cement Manufacturing Industry. Cement Busin...How to Start a Mini Cement Plant. Cement Manufacturing Industry. Cement Busin...
How to Start a Mini Cement Plant. Cement Manufacturing Industry. Cement Busin...
 
Market Research Report : Foundry Market in India 2012
Market Research Report : Foundry Market in India 2012Market Research Report : Foundry Market in India 2012
Market Research Report : Foundry Market in India 2012
 
Global Countertop Demand is forecast to rise 2.3% yearly through 2021: Manufa...
Global Countertop Demand is forecast to rise 2.3% yearly through 2021: Manufa...Global Countertop Demand is forecast to rise 2.3% yearly through 2021: Manufa...
Global Countertop Demand is forecast to rise 2.3% yearly through 2021: Manufa...
 
Paint Manufacturing Industry - Market Survey cum Detailed Techno Economic Fea...
Paint Manufacturing Industry - Market Survey cum Detailed Techno Economic Fea...Paint Manufacturing Industry - Market Survey cum Detailed Techno Economic Fea...
Paint Manufacturing Industry - Market Survey cum Detailed Techno Economic Fea...
 
May 2010 AIVtech Investor Presentation
May 2010 AIVtech Investor PresentationMay 2010 AIVtech Investor Presentation
May 2010 AIVtech Investor Presentation
 
Consumer durables
Consumer durablesConsumer durables
Consumer durables
 
Industrial sector of Pakistan
Industrial sector of PakistanIndustrial sector of Pakistan
Industrial sector of Pakistan
 
Industrial sector of Pakistan
Industrial sector of PakistanIndustrial sector of Pakistan
Industrial sector of Pakistan
 
Industrial Sector of Pakistan
Industrial Sector of PakistanIndustrial Sector of Pakistan
Industrial Sector of Pakistan
 
Engineering Services
Engineering ServicesEngineering Services
Engineering Services
 
Industrial sector of Pakistan
Industrial sector of PakistanIndustrial sector of Pakistan
Industrial sector of Pakistan
 
Oct City Dipp
Oct City DippOct City Dipp
Oct City Dipp
 
Apimec sp - 4 q10
Apimec sp - 4 q10Apimec sp - 4 q10
Apimec sp - 4 q10
 
Apimec sul - 3 q10
Apimec sul - 3 q10Apimec sul - 3 q10
Apimec sul - 3 q10
 
Vision 2020 banking & finance
Vision 2020 banking & financeVision 2020 banking & finance
Vision 2020 banking & finance
 
Conference_20130305_Ivo Zander
Conference_20130305_Ivo ZanderConference_20130305_Ivo Zander
Conference_20130305_Ivo Zander
 
Conference call 2 q12 inglês
Conference call 2 q12   inglêsConference call 2 q12   inglês
Conference call 2 q12 inglês
 
Conference call 2 q12 inglês1408
Conference call 2 q12   inglês1408Conference call 2 q12   inglês1408
Conference call 2 q12 inglês1408
 
PRODUCTION
PRODUCTIONPRODUCTION
PRODUCTION
 

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
  • 24. Construction material, equipment output increasing beneficial to ceramic tiles industry
  • 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
  • 51. Trend SALES (Base year:2004) 400.00 374.76 350.00 328.02 336.34 314.04 300.00 trend (Base 250.00 year:2004) 216.14 200.00 168.32 150.00 134.32 127.59 100.00 100.00 50.00 0.00 2012 2011 2010 2009 2008 2007 2006 2005 2004 Source: www.aceanyalyzer.com
  • 52. Trend PAT (Base year:2004) 350.00 316.49 300.00 250.00 211.76 200.00 190.95194.12194.26 trend (Base year:2004) 150.00 152.36 135.00 114.32 100.00 100.00 50.00 0.00 2012 2011 2010 2009 2008 2007 2006 2005 2004 Source: www.aceanyalyzer.com
  • 53. Trend Costs (Base year:2004) 450.00 400.00 397.53 365.83 350.00 342.88 333.05 300.00 250.00 226.39 200.00 trend (Base year:2004) 173.10 150.00 137.36 130.46 100.00 100.00 50.00 0.00 2012 2011 2010 2009 2008 2007 2006 2005 2004 Source: www.aceanyalyzer.com
  • 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.
  • 56. Competitors Analysis H&R Orient Key success Kajaria Johnson Somany Asian Granito weight Nitco Ltd. Ceramics & factor Ceramics Ltd. (India) Ltd. Ceramics Ltd. India Ltd. Inds. Ltd. [Merged] Quality/ product 0.10 0.50 0.40 0.50 0.50 0.60 0.40 performanc Image 0.10 0.80 0.70 0.60 0.60 0.70 0.40 Manufacturin 0.10 0.80 0.80 0.80 0.70 0.60 0.50 g capabilities Technological 0.05 0.30 0.30 0.30 0.30 0.3 0.30 skills Dealer 0.05 0.45 0.30 0.35 0.35 0.40 0.20 network New product innovation 0.05 0.20 0.15 0.35 0.30 0.30 0.10 capabilities Financial 0.10 0.80 0.70 0.70 0.80 0.60 0.30 Resources Relative cost 0.30 1.80 1.80 1.80 1.80 1.80 1.80 position Customer service 0.15 0.90 0.75 0.75 0.90 1.05 0.60 capabilities
  • 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