ASIAN GRANITO

INDIA LIMITED

Industry Overview
Product Characteristic
Company Overview
Key Competitive Strengths
Business Strategy
Clientele
Summary

INDUSTRY
OVERVIEW

Tile Industry-An
Outlook
Used as paving or cladding material since ancient
times.

Technological advances have made production

process less
labour incentive and lowered cost.
Industry is almost 100 years old and comprises
mainly
- ceramic tiles
- sanitary wares
- crockery items
4

Contd
Mainly Three segments
- Wall Tiles segment
- Floor Tiles segment
- Vitrified & Porcelain segment
The size of Indian tile industry is estimated
to be around Rs.65,000 millions,
which is almost equally divided between
- Organized and
- Unorganized sectors.
5

The Indian Ceramic

Industry

Ceramic Tiles today have become an integral

part of home improvement.

India ranks in the top 5 list of countries in terms

of tile production in the world.

The Indian tile industry, continues to grow at a

healthy 15% rate per annum

Contd

Ceramic Tiles is a generic word which

includes :Ceramic Floor tiles
Unpolished vitrified tiles
Polished vitrified tiles
Porcelain tiles
Ceramic Wall tiles
Rustic tiles
Double Feeder tiles

Global Scenario

Three major regions in the world that bulk

produce and export ceramic, vitrified tiles.
1 ASIA
.

China, India

2 LATIN AMERICA
.

Brazil

3 EUROPEAN UNION
.

Italy, Spain

6900 Million
sqm

World production

Vitrified Tiles Industry

Vitrified tiles are latest version of ceramic tiles.

Internationally, with a 20 % annual growth rate,

vitrified tile is the fastest growing segment in the
ceramic tile industry.

It account for close to 12 % of the overall tile

production across the world.

Although the Indian vitrified tile industry is in its

nascent stage, it is expanding rapidly, at a pace of
about 20 to 25% a year.

Business Opportunity

Mainly depends on infrastructure development and

recently there is a tremendous growth in infrastructure
sector.

The Indian construction industry is expected to grow

from $50billion to $180 billion by 2020.

In retail segment more than 13 million square feet of

development will take place in all leading cities in India
with an investment of over Rs.2, 00,000 crores by 2011.

Low per capita consumption of tiles in India shows the

tremendous business opportunity.

Market
Characteristics of
the
Tile
Industry
Market
for ceramic
tiles in India
Institutional buyers

Retail buyers

Threats to the Industry

Threats to the
Industry

China

Local
un-organized sector

The effect of above

threats becomes

Sustainable reduction in cost of production due

to:
nullified
because

Large volume of production.

Reduction in import cost of material due to
strengthening of the rupee in the
international market.
Major changes in Fuel consumption pattern.
Reduction in excise duty from 55% in 199293 to 8%

Industry: Growth Drivers

Key Factors

Details

Construction
sector

Double Digit growth for the last three yeas

Growth in construction, retail and housing business
big positives

Replacement
Market

Replacement market growing in size

New, innovative and user friendly designs have
helped in creating a large market

Government
Initiatives

Excise Duty rationalised from a high of 55% to 8%

currently
Imposition of anti dumping duty\
Reduction of Custom duty from 15% to 5%
Reduction in effective Sales Tax rate in VAT regime

Rise in income
levels &
affordability

Substantial increase in real income levels gives more

options to end users
Large and expanding middle class leading to
increasing demand

Downsizing of
unorganized

Various entry barriers such as high capital

investment, Continuous technology up gradation and

14

PRODUCT
CHARACTERISTICS

Basic characteristics
CHEMICAL
RESISTENCE

BREAKING
STRENGTH

BASIC
CHARACTERISTICS

WATER
ABSORPTION

ABRASION
RESISTENCE

COMPAY
OVERVIEW

Company Management
Mr. Kamleshbhai Patel, Chairman Cum
Managing Director

In charge of the marketing

Developed sales network of company all over India 10
display house, 19 depots, 300 distributors, 3000
Business Associates

Mr. Hasmukhbhai Patel, Managing Director

In-charge of finance, administration and legal

departments
Member of several industry bodies Director of the
Indian
Council of Ceramic Tiles Industry, New Delhi

Mr. Mukeshbhai Patel, Whole time Director

In-charge of operations and the proposed project

Rich experience in production including procurement,
installation and running of tiles plants, developed
several ways of streamlining existing processes in order

18

Business Structure
AGIL
GROUP

Asian Granito
India Limited

VITRIFIED

Existing 16000
m per day

CERAMIC
WALL

9,300 m
per day

Asian Tiles
Limited

PROPOSED
MARBLE
PROJECT

2500 m
per day

CERAMIC
FLOOR

Existing
7,000 m
per day
19

Product Range
Product Range
Vitrified Segment
Polished
Vitrified

Wall Tiles Segment

firing

Third
Firing

Ceramic Segment
Rustic

The Grand
Rock

Metallic

Rock Slab

Robusto

Multicharge

Vitro

Vitrified
rustic

AquaMosaic

Aqua Art

Porcelano

Capacity Milestones
F.Y. 2007-08
Particulars

Vitrified
Tiles
(square
meters
per day)

Wall Tiles
capacity
(square
meters
per day)

Ceramic Tiles
capacity
( square meters
per day)

Installed

14,411 *

1910 *

7000

96.50%

92.89%

Actual
Capacity
Utilisation
(%)

As on
16000
9300
7000
* 31/03/08
Note : Installed capacity is worked out in pro rata for Vitrified

project on the
15th January,2008
day.

basis of modernization / expansion w.e.f.

from 14,000 sq.mtr to 16,000 sq.mtr per

21

KEY COMPETATIVE
STRENGTH

Key Competitive
Strength
Key Factors

Details

Dedicated
and
experience
d
manageme
nt team

Improved
production
process

Quality
products

All the companys facilities have been ascertained ISO

9001:2000

Proximity
to raw
material
sources

Companys units are based in Gujarat which are close to

raw material sources in Rajasthan
Advantage of proximity to Kandla Port
Company avails of LNG supply through pipelines

Focus on
innovation

Company promoters have an average experience of 13

years in the ceramic industry
Promoters take an active and personal interest in the dayto-day operations and are aided by a experienced and
professional management team
Co. Uses MIS (Management information systems) tools for
running operations at optimal efficiency
Average capacity utilization of its plant in excess of 90%
in FY2008

Research team comprises 6 people headed by president of

production department

23

Key Milestones &

Achievement

Production Capacity :Started with Asian Tiles Limited in 2000-01 with per
day 2000 sqm. Capacity of Ceramic Floor Tiles and
increased the capacity more than 3 times in three
years.
Started vitrified tiles production in AGIL in 2003-04
with per day 4000 sqm. Capacity and increased the
capacity 4 times in four years.
Started wall tile plant in the year 2007-08 with per
day 9300 sqm. Capacity.

Other Achievements
Acquired Biggest Ball Mill of 30 tons, longest Kiln of 121 mtrs
in 2003-04 and biggest Press of 3590 MT from World leaders
SACMI ITALY 2003-04.
Launching huge advertisement in electronic media, television,
newspapers, hoardings etc. to strengthen our Brand image.
Introducing Wall tiles on Concept basis in various attractive
designs for the first time in India with the biggest size as a
substitute of Import of international standard quality.
Setting up quality standard by daily R & D activities in our
highly equipped laboratory equipments.
Asian Granito India Limited is one of the leading
manufacturers among the all vitrified tiles manufacturers in
India with a market share of almost 11%.

NETWORKING
DISPLAY HOUSES
CHENNAI

BANGALORE

COIMBATORE

DELHI
COCHIN

DISPLAY
HOUSES
MUMBAI

PUNE
AHMEDABAD
HIMMATNAGAR

1.
2.

CITY MALL
DEV ARC
BUILDING

BUSINESS
STRATEGY

Business Strategy

Offering a complete spectrum of tiling solutions

for the construction industry

Focus on the export market

Expanding our sales and distribution network

Focus on Product Innovation

33

Raw Material and

its availability

Major Raw materials are Mining products which

are available mostly from nearby places from our
place of manufacturing unit.

Few Raw materials are Imported in Bulk quantities

to save the cost of the material.

Since last 3 to 4 years, there are no major

changes in the raw material prices.

Due to above, there are no barriers for easy

availability of Raw Material and adverse effect on
prices will be negligible in future.

CLIENTELE

Clientele

36

SUMMARY

Summary

High Growth potentiality of the Industry

Strong and experienced management
Continuous Growth in production Capacity
Continuous various Product Innovation
Strong marketing network
Well established Brand Image
Future Planned Strategy

THANK YOU