bunty project

8/7/2019 bunty project

http://slidepdf.com/reader/full/bunty-project 1/31

1



Content

Topic Page No.

Cover page- 1

Content page- 2

Candidate declaration- 3Acknowledgement 4

Chap-I- 5-6

Preface&Scope of the study 5

Objective of the study 6

Chap-II- 7-18

Global Tiles Industry 7

Global Sanitary Industry 8

About Indian Ceramic tiles Industry 9-16

Industry Statistics 17-18

Export-Import Scenario 18

Chap-III- 19-27

Research Methodology&Findings 19-26

Limitations 26

SWOT Analysis 27

Distribution System 27

Ceramic Marketing 27

Chap-IV 28-30

Other Recommendations 28

Risk & Concerns 29

Conclusion 29

References 30

Candidate Declaration/Certificate of Supervisor

2



Acknowledgement

3



Chapter I

Preface

4



The word "Ceramic" has originated from the Greek word, "Keramos", which meanspottery. It also relates to an ancient Sanskrit word whose root meaning is “to burn,”but it is predominantly used to indicate "burnt stuff". Almost 10,000 years later, withthe establishment of settled communities, tiles were manufactured in Mesopotamiaand India. The first instance of functional pottery vessels being used for storing waterand food is thought to be around 9,000 or 10,000 BC. Clay bricks were also madearound the same time.

The ceramics industry in India came into existence about a century ago and hasmatured over time to form a industrial base. From traditional pottery making, theindustry has evolved to find its place in the market for sophisticated insulators,electronic and electrical items. Over the years, the industry has been modernisingthrough new innovations in product profile, quality and design to emerge as a modern,world-class industry, ready to take on global competition.

Though there are a number of large companies in the ceramics sector, small andmedium enterprises (SMEs) account for more than 50 per cent of the total market inIndia, offering a wide range of articles including crockery, art ware, sanitary ware,ceramic tiles, refractory and stoneware pipes among others. Most of the players are

grouped together in clusters.

Over the last two decades, the technical ceramics segment has recorded animpressive growth propelled by the demand for high-alumina ceramics, cuttings toolsand structural ceramics from the industry. Overall, the Indian ceramics industry hasemerged as a major manufacturer and supplier in the global market.

Scope Of The Study

Ceramic tile comes under ‘Building Material Industry’. Over the years, Indian BuildingMaterial Industry poised to grow at a fast pace of almost 16%/annum due to boom in

5



real estate and construction industry. Increase in income levels and availability of arange of financing options for housing is enabling rapid growth in housingconstruction.

In India, particularly in NCR region, growth rate of building material industry is at veryhigh and constantly growing. By this project finding, we have been trying to catch theopportunities and demand of various tile making organisations for their commercialand residential needs in Rajkot and Surat region.

Also as marble prices begin to pinch purses in these times of meltdown, tiles aremaking deeper inroads into urban homes. And they are getting more designermakeovers to suit market demands.

Objective Of The Study

Our soul objective of this report confines with these facts-

• To know the nitty-gritty of Ceramic tile industry as much possible

• Determine the market size and potential of all the organise and unorganisedplayers

• A comparative analysis among some major players of tiles industry , especiallyin Ghaziabad and Meerut region in terms of Quality, Brand Equity, Price andCustomer Service.

• Further scope and opportunity analysis.

Chapter-II

Global Tiles Industry

6



There are three major regions in the world, namely, Asia, Latin America and EuropeanUnion (EU), that produce and export ceramic tiles in bulk. In 2008, they had jointlyproduced more than 87% of the global output. World production of ceramic tiles was7565 million sq.mt. in 2008.China was the largest producer with a total production of 2200 million sq.mt. Spain and Italy were the 2nd and 3rd largest producers withproduction of 635 million sq.mt. and 589 million sq.mt. respectively. India ranks at 5th

position with production of 270 million sq.mt., which is around 2.5% of globalproduction.

The ratio between consumption and production has been stable at around 94 percent. Ceramic tile production has been increasing at a cumulative rate of close to 6per cent. Asia is the most signifcant region by production, as well as consumption,accounting for more than 50 per cent of both. China is the leading country in theproduction of ceramic tiles with a share of 33 per cent at a total production of 2,200million square metres, followed by Spain and Italy. Europe accounts for 30 per centand USA accounts for 14 per cent of the total global production of ceramic tiles. Interms of consumption the pattern remains similar, with Asia accounting for 51per cent, Europe for 26 per cent and USA accounting for 18 per cent of the totalglobal ceramic tile consumption.

Global Sanitaryware Industry

The global sanitary ware industry is estimated to be 187 million pieces andgrowing at about 7 per cent Y-o-Y. The main sanitaryware producing countries inthe world are China, Italy, Mexico, Brazil and Spain, which together account forabout 35 per cent of global production India, with a size of 6.7 million pieces,

accounts for about 3.3 per cent of global production. Penetration of sanitarywarein India-about 30 per cent, is much lower than even neighbouring Asian countries,

7



indicating signifcant growth potential for this sector in the Indian market. The Indiansanitaryware market has been growing at about 10 per cent a year, as compared tothe global average growth of about 7 per cent.

INDIAN CERAMICS INDUSTRY

Ceramic Tiles

India’s ceramic tile industry emerged in the 1950s. Tiles form the most significant

part of the Indian ceramics industry and consist of floor tiles (46 per cent), vitrified

and porcelain tiles (12 per cent) and wall tiles (42 per cent). The floor tiles segment is

growing faster as compared to wall tiles. Vitrifed and porcelain tiles are recent

8



entrants into the ceramic tile industry and have increased the size of the market

considerably. It is expected that this segment will capture the bulk of the

market gradually, replacing the conventional floor and wall tiles segment. These

tiles are light and have the added advantage of being offered in designer looks as

compared to mosaic tiles, which are heavier and more expensive to transport. Both

organised and unorganised sectors play a key role in the manufacturing of ceramic

tiles in India. The per capita consumption of ceramic tiles in India is very less as

compared to the other countries in the world. It is as low as 0.15 sq.mtr per annum.

This low per capita consumption shows the likely demand that is going to arise in the

future in India as more and more development takes place. Ceramic Tiles are

furnishing material apart from being utility or hygiene products. Despite an overall

slowdown of the economy this sector continues to grow at a healthy 12 percent per

annum. Growth of the unorganized sector accounted for 44 percent of the total

Production and the revenue earnings from the organized sector accounted to over

Rs150 crore. India ranks 7th in terms of production in the world and the market share

of India have risen from 1.7 percent to 2.7 percent in terms of ceramic tile production.

MARKET SIZE OF THE INDIAN CERAMIC INDUSTRY

The Indian ceramic tile industry is estimated at US$ 0.35 billion. It Comprises of wall

tiles, floor tiles and vitrified tiles. The per capita Consumption of ceramic tiles in

India is just 0.15 square metres per Annum, which is quite low as compared to

developed countries.

9



The industry has been experiencing increased demand, which, in recent years, has

matched the installed capacity. While capacity has also increased significantly,

from 120 million tonnes in 2004, to 215 million tonnes in 2008, the demand hasgrown nearly two and a half times in the same period, from 97 Million tonnes to 207

million tonnes. Ceramic tiles are produced by organised, as well as unorganised

players.

The share of production of organised players is around 55 per cent. The organised

sector is characterised by the existence of a few large players, such as H. & R.

Johnson, Kajaria Ceramics, Bell Ceramics, SPL, Spartek and Murudeshwar

Ceramics,OCIL and Nitco.

ORGANISED PLAYERS

10



Some of the major players of Indian ceramics industry are-

o Asian Granito (India) Ltd.

o Euro Ceramics Pvt. Ltd.

o H. & R. Johnson (India) Ltd.

o Kajaria Ceramics Ltd.

o Nitco Tiles Pvt.Ltd.

o Orient Ceramics And Industries Ltd.

o RAK Ceramics India Pvt. Ltd.

o SPL Ltd.

PRESENT MARKET SHARE OF TILE PRODUCER COMPANIES IN WESTERN INDIA

11



A Brief Description of Major Players

Orient Ceramics Industries Ltd.

Headquartered at New Delhi, Orient was incorporated as a Public Limited Companyon 18th May 1977 for the manufacture of ceramic tiles with an installed capacityof 0.4 Million sq. mtrs. per annum which has now grown to 14 million sq. mtrs. perannum.Mr. Mahendra K. Daga currently heads Orient Ceramics as Chairman & ManagingDirector with the credo of delivering products of sustained excellence and superiorquality.

Orient’s state of the art manufacturing unit at Sikandrabad (Bulandshar, U.P.) is

spread across 40 acres of land and conforms to the IS 13753-56:1993 of BIS, ISO10545-1/17 & ISO 13006 specifications. Orient has also been accredited with theISO 9001:2000 certification for quality control management.

Since inception, OCIL has been scaling new heights and has evinced a steadygrowth rate. OCIL’s commitment to excellence and quality has earned it a wideand diverse customer base, which spreads across Europe, South East Asia, MiddleEast and the SAARC countries.

It plans to diversify into importing and distributing other building material

products. This shall be accomplished through a strong network of over 800 dealers

12



and 2500 sub-dealers spread all over the country.

The operative keywords are:

• Quality• Durability• Aesthetic Appeal

Thus, it 'creates tiles with a distinct persona'.

OCIL is not just a tiles manufacturer but a company devoted to offer 'extraordinary wall and floor solutions' to create and enliven exclusive designer homes andoffices.

KAJARIA TILES:

It is the largest ceramic floor and wall tile manufacturer in the second most

populous country in the world. It is promoted by Mr. Ashok Kajaria and KajariaExport Limited (Group Company) in technical collaboration with Todagres, S.A.,

Spain. It commenced operation in 1988 in Sikandrabad, (Uttar Pradesh) with an

annual capacity of 1 MSM of floor tiles. It possesses an annual installed capacity of

21 MSM across two facilities at Sikandrabad, (Uttar Pradesh) and Gailpur

(Rajasthan). It has been equipped with eight stock points, eight Kajaria World

showrooms, 19 offices-cum-display centres and 7,000+ dealers and sub-dealers on

a pan-India basis. It is the most prominent Indian ceramic tile brand with a

favourable recall. The largest exporter of ceramic tiles in India. It has unmatched

product offering (wall, floor, vitrified, Spanish and Italian tiles). It has brand-enhancing customers like Unitech, DLF, Parsvnath, Magarpatta, Sobha Developers,

DSK, Mantri Group,Prestige Group, Ansals, Hiranandani, Raheja Developers,

Omaxe and EMAAR-MGF, among others.

ASIAN TILES:

This company is the result of the dreams of three entrepreneurs, materialized withthe grassroots of passion, experience & dynamism… With starting a quest forexcellence a decade ago, today

Asian tiles have blazed a trail in the tile industry. With humble beginning in thefield of floor tiles, today it has expanded till the horizon, covering almost each of the aspects of the industry. Supported by vast man power along with mind power,Asian Tiles possesses the strength of over 3000 business associates spread acrossthe

nation. Asian is all set to reach the goal of supplying world class product, througha network of 18 depots with display centres & ultra modern plant in the ceramiczone of Sabarkantha, Gujarat, spread over an area of 2, 30,000 Sq. Mtr. andproduction capacity of two plants is 32300 Sq. Mtr. Per day of tile. Asian has

become India's leading wall tile manufacturer in large format size, with the biggest

13



size of 300 X 900 mm, where we provide wall tiles of white body similar toEuropean tiles, with the promise of extremely accurate size control, to addbrightness and depth to the glaze.

H & R JOHNSONS:

H. & R. Johnson (India) Limited is India's No. 1 tile company offering a wide range

of wall and floor tile products across various segments v.i.z. Wall, Floor, Vitrified,

Exterior and Industrial. The company also has diversified interests in sanitary

ware and bathroom accessories. With a vast portfolio comprising of 5 well-known

brands in India (Johnson, Marbonite, Porselano, Endura & Milano) the company

provides the most innovative products of international standards that is coupled

with the best of pre and after sales service.

EURO CERAMICS:

Part of “Euro Group” Integral part of the Decorative industry in India.

Promoters:

Mr. Nenshi Shah: Mr. Talakshi Nandu : Mr. Kumar Shah : Mr Paresh Shah

Current Business Profile:

Vitrified Ceramic Tiles : 79,971 MTPA.

Aluminium Extruded Sections : 1800 MTPA

Calcareous Tiles : 45,000 MTPA

Sanitary ware : 11,000 MTPA

Trading in Wall Tiles through a 100% subsidiary

Technology:

SACMI (For Vitrified Tiles & Sanitary ware)

Quality focus:

Vitrified Tiles : ISO 13006. Applied Consumer Services Inc.Florida, U.S.A. VJTI, Mumbai

Manufacturing facilities : ISO 9001:2000 certified

NITCO TILES:

14



A foundation laid on innovation. Since 1953.Going beyond the ordinary and leadingby example is a common tradition practised at Nitco. No wonder, the company isrenowned and revered for its revolutionary concepts, pioneering endeavours andpremium products in the construction industry for over five decades.Today, withits rich repertoire in offering unique Floor Tiles, Mosaico, Wall Tiles and Marble,Nitco has gone to become the most preferred name and the ideal choice of millions of house-holds and the real estate fraternity. An avant-garde at the core,the company has continued to pioneer ground breaking innovations in all itsofferings. Ceramic Tiles, Vitrified Tiles, Pavers, Imported Marble, EngineeredMarble, Intarsia-splendours of inlay marble and Mosaico- artistic creations inmosaic rendered in stone, ceramic and marble, for instance. Winning 13 Capexilawards for innovation and design is the perfect testament to all of itsachievements.

SOMANY TILES:

In the Indian tiles sector, Somany has achieved a clear leadership position by

wholeheartedly adopting forward thinking and an innovative and futuristicapproach. Whether ceramic glazed tiles, vitrified tiles, sanitary ware or porcelainfloor tiles, Somany prides itself in being at the very forefront of style and quality.From raw material imported from Italy and Spain, to the constant endeavor to bethe first to introduce new products in India, Somany has been, and will alwaysstrive to be a dynamic leader in its field.

It began as a vision of things to come, and is today a trail-blazer that others follow.In 1969 Shri H L Somany incorporated a company called Somany Pilkington's,which later became Somany Ceramics Ltd. It was the power of a dream and thezeal to excel, that drove Shri H L Somany to forge a path of unparalleled successfor this company.

The dynamic leadership team in Somany not only spans three generations of ableleaders, it also brings together their staggering breadth of experience and wisdom.With Shri H L Somany at the helm as Founder, Shri Shreekant Somany as the CMDand Shri Abhishek Somany as the JMD, the company is heading towards anexciting phase of expansion and growth. This core leadership team along with alarge team of highly dedicated and talented people is continuously workingtowards creating more value for all stakeholders. Their commitment to excel inevery sphere and to fuel growth in the core as well as new sectors has truly

created a powerful vitality within the company, both in mind and spirit.

In 1971 the very first unit of Somany started production in Kassar, Haryana. Sincethen Somany has reached and surpassed many milestones – setting-up of secondunit in 1981, buyout of all equity shares by Somany's Indian promoters in 1994;achieving Government recognition for its R&D Department in 1996 (a first in thetiles industry); getting ISO 9002 certification in 1998; achieving ISO 14001 forenvironment friendly facilities, in 1999; ventured in retailing in 2007, joint venturewith Keraben under brand name “Synergy”, got patent for VC technology-a firstever in Indian Ceramics industry and incorporation of HL Somany group.

Somany Global flagship retail showrooms are currently located in Delhi, Gurgaon,Ludhiana and Mumbai, Pune and Indore. Many other retail showrooms are about to

15



be opened in leading centres. These showrooms cater to high-end customers andoffer imported tiles as well as exclusive Aquaware brand sanitary ware. A largenetwork of Somany display centers are also spread across the country.

A wide cutting-edge array of designs and material make up the inspiring Somanyrange of tiles. Somany strives to bring its customers floor, wall, vitrified, ceramic,porcelain and innovative tiles that are the very latest in the world. Somany pridesitself in the sheer variety of design and finish, and constantly looks to bring newand trend-setting ideas into the tile industry. The futuristic patented VC Shieldrange of tiles from Somany, are the world's most durable floor tiles. Created usingthe breakthrough, 'Veilcraft technology', that creates a special layer on the tilesthat keep them free from abrasion, scratches and stains, these tiles retain theoriginal glaze and finish for years. No wonder then, that these tilescomprehensively outperform ordinary ceramic tiles including PEI grade 5 tiles.

Venturing into the burgeoning sanitary ware sector, Somany has already mademajor in-roads into this market. With its range of high quality products and

offerings under the brand name of Aquaware, Somany is focusing on creating aniche for itself in this sector, by bringing in and adopting the latest in design,concept and technology.

In the endeavor to bring the very best to customers, we source our raw materialfrom as far as Italy, Spain, and China besides Rajasthan, Uttar Pradesh, MadhyaPradesh and other major centers in the country.

Somany has a production capacity of 15.7 million sq mt per annum from itsHaryana and Gujarat units. It has always focused on acquiring and leveraging thelatest technologies and know-how. A commitment to bring to life new ideas and

design innovations is driven by the huge amounts of funds invested in researchand development. This has borne fruit in the form of Somany's achievement of establishing the very first Government Recognized In-house Research &Development Centre.

Somany has also brought in some ground-breaking technologies into the Indianmarket. Their highly advanced Rotocolour Machine has the capacity to decorateceramic tiles with glazes, using a serigraphic decorating system that employssilicon cylinders. This integrated system that optimizes decoration of tiles enablesany kind of random design and also a marble effect. A truly trend-setting

achievement, it has helped Somany to set new industry benchmarks in quality andproduction standards for ceramic tiles.

Another exceptional technological advantage has been achieved with Somany'snew Laser Guided Vehicle system. This cutting-edge material transportationsystem has automated the movement of ceramic materials in the productionsystem. The Laser Guided Vehicle facilitates optimal and accurate handling,thereby minimizing rejection of in-process materials during the production of tiles.All of this is a result of Somany's commitment to bring the best and the latest to itsvalued stakeholders and customers in India.

16



INDUSTRY STATISTICS:

1. World production: 6900 Million sq.mt.

2. India's Share: 340 Million sq.mt..

3. World ranking (in production): 5

4. Per capita consumption: 0.30 sq.mt.

5. Global Industry Growth Rate: 6%

6. Growth Rate (India Domestic

Market):

15%

7. Organized industry turnover (India): Rs 3000 crores

Glazed Wall Tile share: 40%

Glazed Floor Tile share: 46%

Unglazed Vitrified Tile

share:8%

Glazed Porcelain Tile Share: 6%

Unorganised Industry Turnover Rs 3500 crores

Glazed Wall Tile share: 57%

Glazed Floor Tile share: 35%

Unglazed Vitrified Tile

share:6%

Glazed Porcelain Tile Share:2%

8. Investments in last 5 years: Rs 2000 crores

9. Organized sector:

Share of Production: 56%

No. of units: 16

Revenue (excise duty): Rs 300 crores

17



10.

Unorganized sector:

Share of Production: 44%

No. of units:200 (approx..) (70% based

in Gujarat region)

Revenue (excise duty):Rs 350 crores per annum or

less

11. Job Potential: 50,000 direct

500,000 indirect

Export & Import Scenario

Apart from domestic demand, exports of ceramic tiles from India have alsobeen increasing. From a level of US$ 33.3 million in 2001-02, exports of ceramic tiles from India have gone up to US$ 58.5 million in 2006-07, at aCAGR of 12 per cent. India exports tiles to other parts of Asia, Africa and WestEurope. The other main exports of ceramic products consist of chemical porcelainand insulators, handicraft artware and stoneware crockery. Imports of tiles havegone up rapidly in recent years, to almost match the level of exports. Fromaround US$ 8.3 million in 2001-02, imports have gone up to nearly US$ 55 millionin 2006-07, at a CAGR of 46 per cent. Rising imports indicate the rapid growth indomestic demand for tiles, due to boom in real estate construction.

CHAPTER-III

18



Research Methodology

Title:

To determine the perception about various tile’s quality, brand equity, price andcustomer service.

Title Justification:

Title is self-explanatory. The study mainly deals with the quality, brand awareness,price analysis and above all customer experience about the various tile productsand categories.

Objective:

• To determine the awareness level of different major tile players among the

architects.• To determine the customer awareness level, particularly for new users of

tiles.

• In depth study on the dealer network of various tiles manufacturers.

Significance of the study:

Significance for the industry:

This is a limited study which takes into consideration the responses of 20architect’s, 25 dealers & 150 customers. This data can be explorated to take in thetrends across the industry. The significance for the industry lies in studying thesetrends that emerge from the study. It is a rapidly changing and evolving sector. Astudy like this can attempt to guide the future of the industry based on currenttrends.

Also the views of the architects and dealers would help in determining the futurestrategies of the companies and add to the betterment of end user requirement.

Significance for the researcher:

To have a firsthand research experience about tiles industry. Various primary andsecondary data sources would help in shaping a good notion about the industrytrends and its future prospects. Also recommending measures to improve thepresent scenario of a company would boost up the confidence of the researcher.

19



Research Design:

Type of Research: Exploratory and descriptive experimental research

Size of sample: 20 Architect, 25 dealers and 150 customers.

Area of study: RAJKOT and SURAT City

Sampling procedure: Convenience Sampling

Method: The research is primarily both exploratory as well as descriptive in

nature. The sources of information are both primary & secondary.

A well-structured questionnaire was prepared and personal interviews were

conducted to come to the conclusion.

Brand Awareness Analysis:

BRAND AWARENESS RATING

MEAN RATING

20



INTERPRETATION:

According to the architect’s brand awareness, Kajaria Tiles is on the top followedby Somany tiles, H.R.Johnson’s Pvt. Ltd., Orient tiles and Nitco Tiles.

Quality Analysis:

Quality Rating

Quality Mean

21



INTERPRETATION:

According to the Architect’s, quality wise Kajaria Tiles is leading the marketfollowed by H.R.Johnson Pvt. Ltd., Somany Tiles, Orient Tiles and Nitco Tiles.

Dealer’s Network:

Dealer’s Network Rating

22



Dealer’s Network’s Mean

INTERPRETATION:

According to Architect’s view, Kajaria ceramics has the widest dealer’s network inthe sample area followed by Orient Tiles, Somany Tiles, H.R.Johnson Pvt. Ltd, andNitco Tiles.

Overall Architect’s Choice:

23



INTERPRETATION:

Overall view of the Architect’s leads to this fact that the surveyed region ismostly favoured by Kajaria Tiles Pvt. Ltd., followed by Somany Tiles Pvt. Ltd.,Orient Tiles Pvt. Ltd. And Nitco Tiles in the branded and organised ceramic tilessegment.

Customer Experience Study:

A total number of 100 customers (new user) being interviewed at various locationsof SURAT and being asked to rate the above mentioned tile brands in terms of their awareness and choice and usage.

The parameters are as follows:

1. Price2. Durability and quality3. Awareness4. Response pace5. Availability

6. Variety

Overall Customer Rating

24



Overall Customer Experience Mean

Interpretation:

The above mentioned graph shows a very tough competition among all the majororganised players. Kajaria tiles is ahead in terms of customer rating followed byOrient Tiles, H.R.Johnson Ltd., Somany Tiles and Nitco Tiles.

Dealer’s Experience Study:

A total number of 25 dealer’s of various tiles manufactures had beeninterviewed in Ghaziabad and Meerut Region on the basis of following parameters:

• Brand availability in the store

• Frequency of the inventory

• Timely delivery• Special/urgent supply

25



• Supply time

• Representative relation

• Cash/dealer’s discount

• Frequency of taking dealer’s advice

• Customer’s prerequisite specification needs, if any

• Variety in quality and size of the tiles

• Dealer’s ranking

Overall Dealer’s Experience Rating

Overall Dealer’s Experience Mean

Interpretation:

In terms of dealer’s study, Kajaria Tiles is the most sought after brandfollowed by Somany Tiles,Orient Tiles, H.R.Johnson Ltd. And Nitco Tiles.

Limitations of the Study:

26



• The sample size is very less, hence it does not imply for the complete

population.

• There was lack of time and resources that prevented from carrying out an in

depth study.

•

The findings of the survey are based on the subjective opinion of therespondents and there is no way of assessing truth of the statements.

• There is some respondent’s bias which cannot be removed.

• some amount of error exists in the data filling process because of the

following reasons:

Influence of others.

Misunderstanding of the concept.

Hurried filling of the questionnaire.

SWOT ANALYSIS:

Distribution System:

27



Ceramic Marketing:

The 4Ps of ceramic marketing are like different levers that can be used in different

degrees to achieve the same objective.Product There is a wide range of designs and sizes to choose from. Introductionof two new categories-i.e., Vitrified and Concept tiles.

Price The price range is very vast. Due to capacity expansion supply isincreased so price is lowered down by 35%. Moreover price war from china hasalso lowered down prices.

Promotion Advertising is done in leading Construction magazines and interiordesign journals. Taking part in international exhibitions is routine.

Place Wide distribution network in and outside state. Products delivered withinfeasible timeline of order.

CHAPTER-IV

RECOMMENDATIONS:

MARKETING:

• Should adopt the widest distribution network model to deliver products tothe end user in quickest and most effective way. It would also accelerate thesales. It may include company owned showrooms, franchises, multi-productdealers and sub-dealers.

• Distribution network should be clearly segregated towards specific productsegments.

• May introduce three dimensional catalogue visual experiences to itscustomers and also give customer a chance to design product in their ownway of choice (customized design specification).

• Setting up exclusive showrooms for special products instead of keeping with

with the regular range. As example, the upcoming product ORVIT-a productin high glaze tiles segment should have an exclusive place to showcase. It

28



would add to the exclusive ambience of the product.

• More introduction of matching wall and floor tiles.

• To grow its institutional business, the company should organize moreinteractions with architects, developers and government agencies at itsdealer outlets. This would serve a dual purpose: it would enable thecompany to acquire an insight into evolving preferences of some of the mostprominent and trend- influencing architects; on the other hand, it helped the

company cater to their evolving preferences.

BRAND:

• More focus on packaging and product merchandising.

• It may introduce a specific dedicated team to look after the overall brandequity. They will ensure that all showrooms and dealer display centres werein sync with the Orient profile. Also they will look after the external packingmaterial which creates an eye on look-and-feel, resulting in a holisticbranding approach.

• More focus on Research and design-development activities to achieve thecost and product design leadership.

Risks and Concerns:Some of the key risks affecting the Company are explained below:

1. The instability in the fuel prices due to continuous increase in energy prices in

the international market has significantly put pressure on margins.

2. Due to withdrawal of certain export concession by China and the general

increase in freight has increased the landing cost of certain raw materials.

3. After the imposition of anti dumping duty on Vitrified tile, dumping is taking

place in glazed wall and floor tiles which has put pressure on the domestic tile

manufacturers. The amount of anti dumping duty was significantly reduced in

April 08 by the Govt. However, it is still prohibitive enough. Therefore, only a

few of the Chinese companies who were exempted from anti dumping duty are

29



supplying to companies in India.

4. To retain skilled professionals is also a cause for concern. However, best HR

practices are in place to retain the talent and reduce the attrition.

5. Due to high inflation and tightening of credit by RBI, finance costs may be

adversely affected in the coming year.

Conclusion:

The prospect and the future of ceramic tiles lies not only in Western region but itspread across the country. I would like to produce some of the evidences aligningwith this and with this I would like to conclude my project-

• A report, published in June 2008, stated that the growth in demand forceramic products has been further strengthened by the boom in the Indianreal estate sector, which is registering 30 per cent growth per annum, for

the last few years. The growth in the hospitality industry and the advent of new malls, commercial complexes and multiplexes also lend support to thegrowth prospects of this industry.

• The low per-capita consumption of ceramic tiles in India, which is currentlyaround 0.5 sq. m per person as compared to 2.0 sq. m per person incountries, like Malaysia, Brazil and China, offers huge growth potential.

• The industry can reap the benefit of its low cost of production, which is 25-30 per cent lower compared to the US and Europe, primarily owing to labour

costs. Production of ceramics through conversion from coal-fired to gas/oilfired- furnaces is likely to enhance fuel efficiency and reduce cost as well asensure better quality and reduction of environmental pollution.

References:

For secondary data-

• www.icctas.com

• Company websites

• Annual reports

• Magazines, web-articles and catalogues

For primary data-

• Questionnaire

30

http://www.icctas.com/





• Supervisor’s advice and information

Date post:	08-Apr-2018
Category:	Documents
Upload:	sameer-gadhiya
View:	220 times
Download:	0 times

bunty project

Documents