1

Content
Topic Page No.

Cover page- 1

Content page- 2

Candidate declaration- 3

Acknowledgement 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 means
pottery. 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, with
the establishment of settled communities, tiles were manufactured in Mesopotamia
and India. The first instance of functional pottery vessels being used for storing water
and food is thought to be around 9,000 or 10,000 BC. Clay bricks were also made
around the same time.

The ceramics industry in India came into existence about a century ago and has
matured over time to form a industrial base. From traditional pottery making, the
industry has evolved to find its place in the market for sophisticated insulators,
electronic and electrical items. Over the years, the industry has been modernising
through 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 and
medium enterprises (SMEs) account for more than 50 per cent of the total market in
India, 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 an
impressive growth propelled by the demand for high-alumina ceramics, cuttings tools
and structural ceramics from the industry. Overall, the Indian ceramics industry has
emerged 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 Building
Material 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 a
range of financing options for housing is enabling rapid growth in housing
construction.

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

Also as marble prices begin to pinch purses in these times of meltdown, tiles are
making deeper inroads into urban homes. And they are getting more designer
makeovers 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 unorganised
players

• A comparative analysis among some major players of tiles industry , especially

in Ghaziabad and Meerut region in terms of Quality, Brand Equity, Price and
Customer 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 European
Union (EU), that produce and export ceramic tiles in bulk. In 2008, they had jointly
produced more than 87% of the global output. World production of ceramic tiles was
7565 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 with
production 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 global
production.

The ratio between consumption and production has been stable at around 94 per
cent. Ceramic tile production has been increasing at a cumulative rate of close to 6
per 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 the
production of ceramic tiles with a share of 33 per cent at a total production of 2,200
million square metres, followed by Spain and Italy. Europe accounts for 30 per cent
and USA accounts for 14 per cent of the total global production of ceramic tiles. In
terms of consumption the pattern remains similar, with Asia accounting for 51
per cent, Europe for 26 per cent and USA accounting for 18 per cent of the total
global ceramic tile consumption.

Global Sanitaryware Industry

The global sanitary ware industry is estimated to be 187 million pieces and
growing at about 7 per cent Y-o-Y. The main sanitaryware producing countries in
the world are China, Italy, Mexico, Brazil and Spain, which together account for
about 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 sanitaryware
in 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 Indian
sanitaryware market has been growing at about 10 per cent a year, as compared to
the 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.

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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 has
grown 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
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 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 Company

on 18th May 1977 for the manufacture of ceramic tiles with an installed capacity
of 0.4 Million sq. mtrs. per annum which has now grown to 14 million sq. mtrs. per
annum.
Mr. Mahendra K. Daga currently heads Orient Ceramics as Chairman & Managing
Director with the credo of delivering products of sustained excellence and superior
quality.

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, ISO
10545-1/17 & ISO 13006 specifications. Orient has also been accredited with the
ISO 9001:2000 certification for quality control management.

Since inception, OCIL has been scaling new heights and has evinced a steady
growth rate. OCIL’s commitment to excellence and quality has earned it a wide
and diverse customer base, which spreads across Europe, South East Asia, Middle
East 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 and
offices.

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 Kajaria
Export 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 with
the grassroots of passion, experience & dynamism… With starting a quest for
excellence a decade ago, today

Asian tiles have blazed a trail in the tile industry. With humble beginning in the
field 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 across
the

nation. Asian is all set to reach the goal of supplying world class product, through
a network of 18 depots with display centres & ultra modern plant in the ceramic
zone of Sabarkantha, Gujarat, spread over an area of 2, 30,000 Sq. Mtr. and
production 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 to
European tiles, with the promise of extremely accurate size control, to add
brightness 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:

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A foundation laid on innovation. Since 1953.Going beyond the ordinary and leading
by example is a common tradition practised at Nitco. No wonder, the company is
renowned and revered for its revolutionary concepts, pioneering endeavours and
premium products in the construction industry for over five decades.Today, with
its 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 its
offerings. Ceramic Tiles, Vitrified Tiles, Pavers, Imported Marble, Engineered
Marble, Intarsia-splendours of inlay marble and Mosaico- artistic creations in
mosaic rendered in stone, ceramic and marble, for instance. Winning 13 Capexil
awards for innovation and design is the perfect testament to all of its
achievements.

SOMANY TILES:

In the Indian tiles sector, Somany has achieved a clear leadership position by
wholeheartedly adopting forward thinking and an innovative and futuristic
approach. Whether ceramic glazed tiles, vitrified tiles, sanitary ware or porcelain
floor 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 be
the first to introduce new products in India, Somany has been, and will always
strive 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 the
zeal to excel, that drove Shri H L Somany to forge a path of unparalleled success
for this company.

The dynamic leadership team in Somany not only spans three generations of able
leaders, 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 CMD
and Shri Abhishek Somany as the JMD, the company is heading towards an
exciting phase of expansion and growth. This core leadership team along with a
large team of highly dedicated and talented people is continuously working
towards creating more value for all stakeholders. Their commitment to excel in
every 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. Since
then Somany has reached and surpassed many milestones – setting-up of second
unit 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 the
tiles industry); getting ISO 9002 certification in 1998; achieving ISO 14001 for
environment friendly facilities, in 1999; ventured in retailing in 2007, joint venture
with Keraben under brand name “Synergy”, got patent for VC technology-a first
ever 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 and
offer imported tiles as well as exclusive Aquaware brand sanitary ware. A large
network of Somany display centers are also spread across the country.

A wide cutting-edge array of designs and material make up the inspiring Somany
range 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 prides
itself in the sheer variety of design and finish, and constantly looks to bring new
and trend-setting ideas into the tile industry. The futuristic patented VC Shield
range of tiles from Somany, are the world's most durable floor tiles. Created using
the breakthrough, 'Veilcraft technology', that creates a special layer on the tiles
that keep them free from abrasion, scratches and stains, these tiles retain the
original glaze and finish for years. No wonder then, that these tiles
comprehensively outperform ordinary ceramic tiles including PEI grade 5 tiles.

Venturing into the burgeoning sanitary ware sector, Somany has already made
major 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 a
niche 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 material
from as far as Italy, Spain, and China besides Rajasthan, Uttar Pradesh, Madhya
Pradesh and other major centers in the country.

Somany has a production capacity of 15.7 million sq mt per annum from its
Haryana and Gujarat units. It has always focused on acquiring and leveraging the
latest 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 research
and 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 Indian
market. Their highly advanced Rotocolour Machine has the capacity to decorate
ceramic tiles with glazes, using a serigraphic decorating system that employs
silicon cylinders. This integrated system that optimizes decoration of tiles enables
any 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 and
production standards for ceramic tiles.

Another exceptional technological advantage has been achieved with Somany's

new Laser Guided Vehicle system. This cutting-edge material transportation
system has automated the movement of ceramic materials in the production
system. 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 its
valued stakeholders and customers in India.

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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 Domestic15%

Market):

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

Glazed Wall Tile share: 40%

Glazed Floor Tile share: 46%

Unglazed Vitrified Tile

8%
share:

Glazed Porcelain Tile Share: 6%

Unorganised Industry Turnover Rs 3500 crores

Glazed Wall Tile share: 57%

Glazed Floor Tile share: 35%

Unglazed Vitrified Tile

6%
share:

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
 Unorganized sector:

10.
Share of Production: 44%

200 (approx..) (70% based

No. of units:
in Gujarat region)

Rs 350 crores per annum or

Revenue (excise duty):
less

11. Job Potential: 50,000 direct

500,000 indirect

Export & Import Scenario

Apart from domestic demand, exports of ceramic tiles from India have also
been 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 a
CAGR of 12 per cent. India exports tiles to other parts of Asia, Africa and West
Europe. The other main exports of ceramic products consist of chemical porcelain
and insulators, handicraft artware and stoneware crockery. Imports of tiles have
gone up rapidly in recent years, to almost match the level of exports. From
around US$ 8.3 million in 2001-02, imports have gone up to nearly US$ 55 million
in 2006-07, at a CAGR of 46 per cent. Rising imports indicate the rapid growth in
domestic 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 and
customer 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 products
and 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 20

architect’s, 25 dealers & 150 customers. This data can be explorated to take in the
trends across the industry. The significance for the industry lies in studying these
trends that emerge from the study. It is a rapidly changing and evolving sector. A
study like this can attempt to guide the future of the industry based on current
trends.

Also the views of the architects and dealers would help in determining the future
strategies 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 and
secondary data sources would help in shaping a good notion about the industry
trends and its future prospects. Also recommending measures to improve the
present 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
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INTERPRETATION:

According to the architect’s brand awareness, Kajaria Tiles is on the top followed
by 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 market
followed 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 in
the sample area followed by Orient Tiles, Somany Tiles, H.R.Johnson Pvt. Ltd, and
Nitco Tiles.

Overall Architect’s Choice:

23
 INTERPRETATION:

Overall view of the Architect’s leads to this fact that the surveyed region is
mostly 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 tiles
segment.

Customer Experience Study:

A total number of 100 customers (new user) being interviewed at various locations
of 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. Price
2. Durability and quality
3. Awareness
4. Response pace
5. Availability
6. Variety

Overall Customer Rating

24
 Overall Customer Experience Mean

Interpretation:

The above mentioned graph shows a very tough competition among all the major
organised players. Kajaria tiles is ahead in terms of customer rating followed by
Orient 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 been

interviewed 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 brand
followed 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 the
respondents 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. Introduction
of two new categories-i.e., Vitrified and Concept tiles.
Price  The price range is very vast. Due to capacity expansion supply is
increased so price is lowered down by 35%. Moreover price war from china has
also lowered down prices.
Promotion  Advertising is done in leading Construction magazines and interior
design journals. Taking part in international exhibitions is routine.
Place  Wide distribution network in and outside state. Products delivered within
feasible timeline of order.

CHAPTER-IV
RECOMMENDATIONS:

MARKETING:

• Should adopt the widest distribution network model to deliver products to

the end user in quickest and most effective way. It would also accelerate the
sales. It may include company owned showrooms, franchises, multi-product
dealers and sub-dealers.
• Distribution network should be clearly segregated towards specific product
segments.
• May introduce three dimensional catalogue visual experiences to its
customers and also give customer a chance to design product in their own
way 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 product
in 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 more
interactions with architects, developers and government agencies at its
dealer outlets. This would serve a dual purpose: it would enable the
company to acquire an insight into evolving preferences of some of the most
prominent 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 brand
equity. They will ensure that all showrooms and dealer display centres were
in sync with the Orient profile. Also they will look after the external packing
material which creates an eye on look-and-feel, resulting in a holistic
branding approach.
• More focus on Research and design-development activities to achieve the
cost 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 it
spread across the country. I would like to produce some of the evidences aligning
with this and with this I would like to conclude my project-

• A report, published in June 2008, stated that the growth in demand for
ceramic products has been further strengthened by the boom in the Indian
real 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 the
growth prospects of this industry.

• The low per-capita consumption of ceramic tiles in India, which is currently

around 0.5 sq. m per person as compared to 2.0 sq. m per person in
countries, 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/oil
fired- furnaces is likely to enhance fuel efficiency and reduce cost as well as
ensure 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

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• Supervisor’s advice and information

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