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Strategic analysis of indian ceramic tiles indusry10,549views

Shakti Dodiya

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Published on Mar 21, 2013

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1. Strategic Analysis of Indian Ceramic Tile IndustryPresenting by :Shakti Dodiya M- 7874177418Hemant Hadiel M- 9723664224Shoeb Sheikh M-9067949799 [ 90

2. Reserch Methodology……Main Objective:Strategic Analysis of Indian Ceramic Tile IndustrySub Objectives:To know what is the present outlook of the IndustryTo Know who are the players in the IndustryTo Know what is the Domestic & Global scenario of the industryTo know what are the growth drivers of the present industryTo indentify the driving forces of the industryTo know the attractiveness of the Indian ceramic tile industryTo know the key success factors of the present industryTo know the Political, Economical, Social and Technological Factorsaffecting the Indian ceramic tiles industryTo know the competitive forces of the industryTo know the probable opportunity and threats of the industryTo know the present performance of the industryTo do comparative analysis of top players of the industry

3. Reserch MethodologyData Collection:1. Personal Interviews with Experts2. Secondary DataTools:Porters Five Forces AnalysisPEST AnalysisIndustry Life cycle Analysis9 Cell MatrixOT Analysis

4. Indian Tile Industry HighlightsWorld Production : 9515 Million sq.mt.Indias Share : 550 Million sq.mt.World Ranking (in production) : 3Per capita Consumption : 0.50 sq.mt.Global Industry Growth Rate : 11%Growth Rate (India Domestic Market) : 15%Organized Sector Turnover (India) : Rs 7200 croresUnorganized Sector Turnover : Rs 10800 croresInvestments in last 5 years : Rs 2000 croresOrganized Sector:Share of

None Flag

Production : 40%No. of units : 14Unorganized 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 HighlightsWorld Production : 9515 Million sq.mt.Indias Share : 550 Million sq.mt.World Ranking (in production) : 3Per capita Consumption : 0.50 sq.mt.Global Industry Growth Rate : 11%Growth Rate (India Domestic Market) : 15%Organized Sector Turnover (India) : Rs 7200 croresUnorganized Sector Turnover : Rs 10800 croresInvestments in last 5 years : Rs 2000 croresOrganized Sector:Share of Production : 40%No. of units : 14Unorganized 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 HighlightsWorld Production : 9515 Million sq.mt.Indias Share : 550 Million sq.mt.World Ranking (in production) : 3Per capita Consumption : 0.50 sq.mt.Global Industry Growth Rate : 11%Growth Rate (India Domestic Market) : 15%Organized Sector Turnover (India) : Rs 7200 croresUnorganized Sector Turnover : Rs 10800 croresInvestments in last 5 years : Rs 2000 croresOrganized Sector:Share of Production : 40%No. of units : 14Unorganized 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 IndianCeramic 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

18. Source: www.infrawindow.com 19. Source: www.infrawindow.com 20. Source: www.infrawindow.com 21. Construction industry growth boosting ceramic tiles industry•industries will continue

to display robust growth in 2012-13given the spending promises of the government development•Industry officials believe that 2012-13 would be able to seethe industry clock growth of 8-9%. Similarly, steel productiontoo will be supported by construction activity while a largeportion of the demand would emanate from automobileindustry.

22. Construction VS Ceramic products PAT CONSTRUCTION INDUSTRY ceramic products 1423 1082 1055 891 698 567 373 193 182 163 114 70 68 482005 2006 2007 2008 2009 2010 2011 Source : CMIE

23. Source: www.infrawindow.com 24. Construction material, equipment output increasing beneficial to ceramic tilesindustry 25. Evolution of digital technology•Digital printing technology offers an opportunity to

createunique, same to same, high definition permanent images withmost desirable surface finish and feel. Technology cansuccessfully replicate images ofwood, marble, stone, metal, granite, glass wall paper, textiles fromsilk to rough hessian and in huge color tones and gradients.•New Digital Printing technology has changed the look of tileindustry. This technology can imprint the realistic image on tileswith high clarity and design durability.•Digital tiles is now becoming ceramic art for the walls. Createdbased on principles and procedures similar to those used in graphicart work, digitally printed tiles offer photo like high resolutionimpressions on ceramic tilesWater jet technology is already being used by fewcompanies, offering complex shapes likecircles, ovals, waves, floral patterns of different kind for floor décorwhich is a reality now. Nano technology is getting popular for vitrified tile flooring. Selforganizing Nano particles will form an invisible layer on the surfacewith having excellent water/dust repellent, stain proof, anti-bacterial properties, and retains rich surface finish for a long periodof 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 throughalliance, merger and takeover and production capacityexpansion•Recently , Asian tiles merged with Asian Granito (I) ltd, anotherbig merger was of H&R Johnson Ltd merged with Prism CementsLtd, and last but one of important merger was of Orient ceramicsand Bell Ceramics Ltd.•Somani Ceramics has recently announced that they are going toinvest 100 cr in next three years for enhancing its productionfacility.they have recently bought 26% stake in commandervitrified company as well as , has formed a marketing anddistribution alliance with Italys IRIS Ceramiche•Another big company Kajaria ceramics has acquired majoritystake in Vennar ceramics. They have also bought majority stakein Jaxx vitrified tiles company.•Biggest company in ceramic industry in the world, RAK ceramicsis going to establish manufacturing facility in gujarat with aninvestment of Rs500 cr by mid 2012•Chinese and Italian companies have opened offices inMorbi, Gujarat to provide after sales services to the ceramicindustry

30. INDUSTRY PROFILE AND ATTRACTIVENESSKey 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 inthe Morbi, Wankaner, Thangadh, Bamanbor, Shapar-Veraval areasin 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 redsoil(fire clay), which is the raw material for the ceramicindustry. In addition, raw materials such as volestonite andfeldspar are acquired from mines in Bikaner an Jaipur.Powder used in the industry comes from the Pune andUdaipur. Fuel Gas is supplied from the porbandar

34. Promotion…•Many ceramic companies in Gujarat have launched online portals to directly comein contact with customers. Visitors of the site can customize the designs at

their willand order a sample of the tile before buying it.•Big players like Asian Granito, Kajaria, have already established their brand showrooms at the big cities of the selected states to display theirs products and directlyreach to their customers. Recently, Orient Ceramic have open their show rooms inAndhra 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 thecountry. It was earlier planning to open 60-65 retails store but now it will go aheadwith 50 strores. (Souce:BS_18_Aug_2011)

35. Price…Though Indian ceramic industry is the facing pricing war from China, our price is reasonablylow in premium market like Europe , Canada and US. Only things we need is proper salesnetworks 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 timerising coupled with lower demand plaguing the industry and the rise inRM 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 is3.4 which is slightly higher than the moderate. The presence scenario of the industry tells that the bigcompany such as Somany Ceramics and Kajaria Ceramics are increasing their market share by acquisitionof the small units and due to high cost have prevented new entrance for next two year no new entries arecoming 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 2.9Interpretation: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 ascustomers are making now their home look aesthetics and giving it a luxurious and the per capitaconsumption of ceramic tile in india is low and boom in housing market has boosted the demand forceramic 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. Becauseof their shortage of the raw such as Feldspar & Quartzs are being exported to the othercountries as well as raw material cost of such as Zirconium and Titanium are rising and bythis 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 :InterpretationFrom the above factors we can conclude that the threats of substitute product is moderate to high, butthe ceramic tiles are man maid and easy to lay and maintain. They come in various textures andpatterns which natural products such as marbles and stones, granite fails to provide. Natural productrequire the lot of treatment like cutting, polishing and laying etc.. The process is time consuming andit takes 15 days marble to set, where as tiles take only 48 hours. In the long run there might bescarcity 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 CeramicsLtd., another big player H&R Johnson (I) Ltd. Has merged with Prisam Cements Ltd., Asian Tile hasmerged with Asian Granito (I) ltd. And companies like Somany Tiles and Kajaria Tiles are acquiringthe small units to increase their market presence. The industry has very few such as 16 Organizedplayers 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 underNatural 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 foranother five years•The GST is expected to be rolled out from the next fiscal and will replace a plethora of statelevies 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 ruralland areas.

42. THREATS•It has been observed that dumping of tiles from China is the biggestproblem of the industry. An anti-dumping investigation concluded in2003 has also confirmed this problem and levied anti-dumping dutyof US $ 8.28 per sq.mt on vitrified ceramic tiles imported from China•Imports and the unorganized tile sector are the major threat to theIndian tile market. Freight, power and gas are the key cost-relatedissues impacting the industry•Copying of Tile designs is also a threat for the business resulting inundue loss to the Company•For some time now, Indian ceramic tile manufacturers are besiegedwith the problem of low margin and falling profitability. According toindustry sources, one of the reasons behind this scenario is thedumping of vitrified tiles into Indian market by countries such asChina, 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 ofmanufacturing due to increase in prices of raw materialssuch as zirconium and titanium

44. • Lack of natural gas facility and arrangements for natural gasfacilities as well as rising cost of the gas facilities keepingprofitability 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 risingcoupled with lower demand plaguing the industry and the rise in RM prices hadadded 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= FavorableInterpretation:From the above data we can conclude that political factors are moderately unfavorable to the industry as the presentgovernments export import polices regarding dumping production from China to India. There environment protectionlaw are not favoring the industry and the pressure from the players such as RAK Ceramics and Chinese players areincreasing.

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 3.05Interpretation:From the above data we can conclude that the Economical condition in to the country is moderatelyfavorable to the ceramic tiles industry. As Indian economy is growing at around 5 to 6 percentage. Theinterest rates are favorable, the employment in the economy is increasing and disposable income of thecustomer 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 theirneed and the trends are changing. The demand for housing is increasing. The standard of living in metro cities and semiurban 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 0.15From the above data we can conclude that the technological factors are moderately unfavorable to the ceramic tiles TOTAL 1.00 2.90industry. The manufacturing process used in Indian ceramic tile industry is highly energy driven as well as the costof fuel and gas is increasing from the cost point of view. The digital printing is the new technology introduce intothe Indian ceramic tile industry. Other Technology such as Nano Techology, Waterjet Techology are also becomingfavorite 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 identifiedas 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)400.00 374.76350.00 328.02 336.34 314.04300.00 trend (Base250.00 year:2004) 216.14200.00 168.32150.00 134.32 127.59100.00 100.00 50.00 0.00 2012 2011 2010 2009 2008 2007 2006 2005 2004 Source: www.aceanyalyzer.com

52. Trend PAT (Base year:2004)350.00 316.49300.00250.00 211.76200.00 190.95194.12194.26 trend (Base year:2004)150.00 152.36 135.00 114.32100.00 100.00 50.00 0.00 2012 2011 2010 2009 2008 2007 2006 2005 2004 Source: www.aceanyalyzer.com

53. Trend Costs (Base year:2004)450.00400.00 397.53 365.83350.00 342.88 333.05300.00250.00 226.39200.00 trend (Base year:2004) 173.10150.00 137.36 130.46100.00 100.00 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.competitorsThe Indian tile industry is divided into organized and unorganized sector. The organized sectorcomprises 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 bearingtestimony of the growth potential of this sector.Only few organized players prevail in the market, the industry has fragmented players. only bigplayers are able to be profitable in the market because of the rising costs in to the market , bigcompanies such as Somany ceramics and Asian Granito are acquiring stakes into smallcompanies to increasing their market presence.

55. ConclusionFrom the above discussion it can be concluded that, the sales arethough showing sluggish ternd in present but it has potential to rise infuture, 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 goingto be growing demand in the future and no of competitors are also fewand highly fragmented. So industry is somewhere between pioneering toexpansion 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 0.40performancImage 0.10 0.80 0.70 0.60 0.60 0.70 0.40Manufacturin 0.10 0.80 0.80 0.80 0.70 0.60 0.50g capabilitiesTechnological 0.05 0.30 0.30 0.30 0.30 0.3 0.30skillsDealer 0.05 0.45 0.30 0.35 0.35 0.40 0.20networkNew productinnovation 0.05 0.20 0.15 0.35 0.30 0.30 0.10capabilitiesFinancial 0.10 0.80 0.70 0.70 0.80 0.60 0.30ResourcesRelative cost 0.30 1.80 1.80 1.80 1.80 1.80 1.80positionCustomerservice 0.15 0.90 0.75 0.75 0.90 1.05 0.60capabilities

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 PBITD400350300 Industry250 Kajaria Prism200 Somany Asian150 Orient Bell Nitco100 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. PAT500400 Industry300 Kajaria Prism Somany200 Asian Orient Bell Nitco100 Murudeshwar 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012-100

64. Name Asian Prism Soma Kajari orient nitco Regen Euro AVERAof the Granit ceme ny a bell Ltd cy ceram GEcomp o nts ceram ceram ceram ceram icsany India ics ics ics icsPE 5.36 - 5.23 15.52 4.3 0 0 1.36 - 85.12 6.6687 5PBV 0.4 -2.22 21.86 4.44 0.6 0.3 -1.8 0.25 2.9787 5ROE 7.79 -2.55 1.04 32 15.8 -10.9 - 20.54 - 317.7 31.747 5DY 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 SomanyDY -40 PBV AVERAGE -20 ceramics DY -40 PBV AVERAGE ROE ROE

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