ASIAN GRANITO ASIAN GRANITO INDIA LIMITEDINDIA LIMITED

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

INDUSTRY OVERVIEW

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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

• In India growth rate is approx. 12% to 15% P.A.

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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.

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 tilesUnpolished vitrified tilesPolished vitrified tilesPorcelain tilesCeramic Wall tilesRustic tilesDouble 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

World production - 6900 Million sqm

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

nullified because:

• Sustainable reduction in cost of production due to:

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 1992-93 to 8%

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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 players

• Various entry barriers such as high capital investment, Continuous technology up gradation and better brand image

PRODUCT CHARACTERISTICS

Basic characteristics

BREAKING STRENGTH

WATER ABSORPTION

ABRASION RESISTENCE

CHEMICAL RESISTENCE

BASIC CHARACTERISTICS

COMPAY OVERVIEW

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Company ManagementCompany 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 to reduce operating expenses.

Mr. Rameshbhai Patel, Whole time Director• Involved in brand promotion and marketing activities

• Several years of experience in the ceramic industry

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AGIL GROUP

Asian Granito India Limited

Asian Tiles Limited

VITRIFIEDCERAMIC

FLOORCERAMIC

WALL

Existing 16000 m² per day

9,300 m² per day

Existing 7,000 m² per day

PROPOSED MARBLEPROJECT

2500 m² per day

Business Structure

Product Range

Vitrified Segment Ceramic Segment

Polished Vitrified

The Grand Rock

Rock Slab

Multicharge

Vitrified rustic

Aqua Art

Rustic

Metallic

Robusto

Vitro

AquaMosaic

Porcelano

Wall Tiles Segment

Second

firingThird Firing

Product Range

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Capacity Milestones

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

Actual Capacity Utilisation (%)

96.50% - 92.89%

As on 31/03/08

16000 9300 7000

F.Y. 2007-08

* Note : Installed capacity is worked out in pro rata for Vitrified project on the basis of modernization / expansion w.e.f. 15th January,2008 from 14,000 sq.mtr to 16,000 sq.mtr per day.

Wall tiles project commenced w.e.f. 15th January,2008.

KEY COMPETATIVE STRENGTH

Key Competitive Strength

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Key Factors Details

Dedicated and experienced management team

• Company promoters have an average experience of 13 years in the ceramic industry

• Promoters take an active and personal interest in the day-to-day operations and are aided by a experienced and professional management team

Improved production process

• 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

Quality products

• All the company’s facilities have been ascertained ISO – 9001:2000

Proximity to raw material sources

• Company’s 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

• Research team comprises 6 people headed by president of production department

• Company has introduced a large no. of colors, designs and size variations in the Indian vitrified tile market

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.

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%.

Other Achievements

NETWORKING DISPLAY HOUSES

COIMBATORE

COCHIN

PUNE

HIMMATNAGAR

AHMEDABAD1. CITY MALL2. DEV ARC BUILDING

MUMBAI

DELHI

BANGALORECHENNAI

DISPLAYHOUSES

BUSINESS STRATEGY

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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

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

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Clientele

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

Summary

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