Report on Ceramic tiles industry in India

-Strategic Management I

Submitted To:-

Prof. Rajiv Joshi

On 13th April, 2010

Submitted By:-

Abbasi F. Tinwala

Roll No.50,

Term III, SKIPS

Sr.No Contents Topics Covered

1 Introduction Ceramic Types of Ceramics Use of Ceramics

2 Industry Analysis History of Ceramic Tiles Overall Picture of Ceramic Industry Current Status of Ceramic Industry Ceramic Tiles Industry in India Industry Statistics of Ceramic Tiles

3 Competitors Analysis

Somany Ceramics Ltd. Orient Ceramics and Industries Ltd. Kajaria Ceramics Ltd. Asian Granito (India) Ltd. H. & R. Johnson (India) Ltd. Euro Ceramics Pvt. Ltd. Bell Ceramics Ltd.

4 SWOT Wizard Strengths, Weakness, Opportunities and Threats

5 Supply Chain Supply Chain Of Ceramic Tiles Industry

6 4Ps Of Marketing Product , Price , Place and Promotion

7 Growth Where We(India) stand Today Indian Growth Trends(Production) India’s Exports in Ceramic Tiles Future Prospects Indian Government Initiatives

8 Bibliography

Index

1. Introduction :-

Ceramic: - 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 American Society for Testing and Materials (ASTM) defines a ceramic article as “an article having a glazed or unglazed body of crystalline or partly crystalline structure, or of glass, which body is produced from essentially inorganic, non-metallic substances and either is formed from a molten mass which solidifies on cooling, or is formed and simultaneously or subsequently matured by the action of the heat.”

Types of Ceramic Products:-

Ceramic products are usually divided into four sectors; these are shown below with some examples:

Structural, including bricks, pipes, floor and roof tiles Refractories, such as kiln linings, gas fire radiants, steel and glass making

crucibles Whitewares, including tableware, wall tiles, pottery products, and

sanitary ware Technical, is also known as Engineering, Advanced, Special, and in Japan,

Fine Ceramics. Such items include tiles used in the Space Shuttle program, gas burner nozzles, ballistic protection, nuclear fuel uranium oxide pellets, bio-medical implants, jet engine turbine blades, and missile nose cones. Frequently the raw materials do not include clays.

Use of Ceramics:-

We commonly think of ceramics as art objects and decorations. But ceramics really are diverse pieces of multi-purpose material that are made from burning formed pieces of pottery. The uses of ceramics can be followed as under:-

The main purpose or use of ceramics is in wall tiles, floor and roof tiles, bricks, pipes, tableware, pottery products and sanitary ware.

Ceramics are used in the manufacture of knives. The blade of a ceramic knife will stay sharp for much longer than that of a steel knife, although it is more brittle and can be snapped by dropping it on a hard surface.

Ceramics are increasingly used in motor-sports, where a series of durable and lightweight insulator coatings have become necessary, for example on exhaust manifolds.

Ceramics such as alumina and boron carbide have been used in ballistic armoured vests to repel large-calibre rifle fire. Such plates are known commonly as Small Arms Protective Inserts (SAPI). Similar material is used to protect cockpits of some military airplanes, because of the low weight of the material.

Work is being done in developing ceramic parts for gas turbine engines. Currently, even blades made of advanced metal alloys used in the engines' hot section require cooling and careful limiting of operating temperatures. Turbine engines made with ceramics could operate more efficiently, giving aircraft greater range and payload for a set amount of fuel.

2. Industry AnalysisHistory of Ceramic Tiles :-

Rumors have it that the first clay tiles were produced seven to eight thousand years ago in the area now known as the Holy Land. Many sources independently verify that the actual known history of Tiles (and the known usage of wall and floor tile coverings) can be traced back as far as the fourth millennium BC (4000 BC) to know Egypt.

In those days, in Egypt, tiles were used to decorate various houses. Clay bricks were dried beneath the sun or baked, and the first glazes were blue in color and were made from copper, very exquisite!

During that period ceramics were also known to be found in Mesopotamia. These ceramics bore decorations, which were white and blue striped and later possessed more varied patterns and colors. Later on, in China too, the great center of ceramic art, a fine, white stoneware with the earliest Chinese glaze was produced during the Shang-Yin dynasty (1523-1028 BC).

The usage and the art of making and decorating ceramic tiles had spread and by 900 A.D., decorative tiles had become widely used in Persia, Syria, and Turkey and across North Africa. As transport and communication developed, tile usage and its penetration in other territories increased. Wars and territory takeovers caused this art to spread even faster.

The Romans introduced tile making in Western Europe as they occupied territories. The Low Countries of Northern Europe somehow acquired the technology from Persia, while the Moors brought African tiles with them when they invaded Iberia (Spain). It was aboard the ships of Spanish conquistadors that decorative clay tiles found their way to the New World, where they were used primarily to decorate the Churches of newly built missions.

By the end of the 12th century, use and manufacture of Ceramic Tiles had spread across Italy and Spain and into the rest of Europe. Till that time they were mainly used to decorate the floors of Cathedrals and Churches. The skill had eventually vanished from Europe in the 16th century following the reformation. But the decorative wall tile art had survived in Turkey and the Middle East and the Delft tiles art survived in Holland.

A form of tile making had also evolved among the natives of North and South America at some point. The first decorative tiles to appear in Colonial North America were imported from Northern Europe, mainly England the Brits having hijacked the technology from the Dutch. The tiles were too expensive for utilitarian purposes in the Colonies and were found almost exclusively in the homes of the wealthy.

Through the centuries, tile decoration was improved upon, as were methods of tile manufacture. For example, during the Islamic period, all methods of tile decoration were brought to perfection in Persia. Throughout the known world, in various countries and cities, Ceramic tile production and decoration reached great heights. The tile mosaics of Spain and Portugal, the floor tiles of Renaissance Italy, the faiences of Antwerp, the development of tile iconography in the Netherlands, and the Ceramic tiles of Germany are all prominent landmarks in the history of Ceramic tile.

In the early days, the tiles were hand-made, each tile was hand-formed and hand-painted, and thus each was a work of art in its own right. Ceramic tile was used almost everywhere on walls, floors, ceilings, fireplaces, in murals, and as an exterior cladding on buildings.

Today Ceramic tile throughout the world is not hand-made or hand-painted for the most part. Automated manufacturing techniques are used and the human hand does not enter into the picture until it is time to install the tile. They are used in an almost infinite number of ways and you dont have to consider yourself wealthy to own them. In commercial buildings, where both beauty and durability are considerations, ceramic tiles will be found, particularly in lobby areas and restrooms.

In fact most modern houses throughout use Ceramic tiles for their bathrooms and kitchens and in every vital area of the premise. Ceramic tiles are also the choice of industry, where walls and floors must resist chemicals. And the Space Shuttle never leaves Earth without its protective jacket of high-tech, heat resistant tiles.

(Source:-http://www.icctas.com)

Overall (Global) picture of the Industry:-

( Source: ASCER, countries listed according to output in 2000)

.Note: The Top 10 countries shown above account for more than 69% of world production of Ceramic Tiles. Total world production as per 2000 figures was 4122.80 million sq.mts.

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 significant 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.

Ceramic tiles as a product segment have grown to a sizeable chunk today at 340 Millions Square meters production per annum. However, the potential seems to be great, particularly as the housing sector, retail, IT & BPO sectors have been witnessing an unprecedented boom in recent times. The ceramic tiles sector has been clocking a robust growth of 12-15% consistently over the last few years. Today, India figures in the top 5 countries in the world manufacturing ceramic tiles.

The key drivers for the ceramic tiles in India are the boom in housing sector coupled by government policies fuelling strong growth in housing sector. The retail boom in the Indian economy has also influenced the demand for higher end products. Overall the bullish growth estimates in the Indian economy has significantly influenced the growth of the Indian Ceramic tile industry.

The main product segments are the Wall tile, Floor tile, Vitrified tile and Porcelain tile segments. The market shares are 35%, 53% and 12% respectively for Wall, Floor & Vitrified/Porcelain tiles. The tiles are available in a wide variety of designs, textures and surface effects. They cater to tastes as varied from rustics to contemporary marble designs in super glossy mirror finishes.

Both, traditional methods of manufacturing (tunnel) and the latest single fast firing methods are deployed in manufacturing. Some of the latest trends in manufacturing methods can be seen in India.

The investments in the last five years are approx. Rs 2000 crores. The industry also enjoys the unique distinction of being highly indigenous with an abundance of raw materials, technical skills, infrastructural facilities despite being fairly

capital intensive. A total of over 5,50,000 people are employed in the sector. Out of this, 50,000 people are directly employed and 5,00,000 are indirectly associated. The potential is huge considering the per capita consumption of ceramic tiles in India. Currently it is at 0.30 square meters per person in comparison to over 2 square meters per person for like countries like China, Brazil and Malaysia.

(Source:-http://www.icctas.com)

Current status of the Industry:- The ceramic tiles industry in India has followed similar trends internationally which have been characterized by excess capacities and falling margins. Countries like Malaysia, Thailand, Indonesia, Sri Lanka and Vietnam are setting up their own plants. China has emerged as a major competitor. Producers from Spain and Italy have the advantage of lower transportation costs while exporting to USA and Germany. In India, the per capita consumption is as low as 0.30 square meters per person compared to China (2 square meters per person), Europe (5 to 6 square meters per person) or Brazil (2.5 square meters per person). Rising disposable incomes of the growing middle class and 40 million units of housing shortage hold out a great potential.

A major change that took over the ceramic tiles industry, was the introduction of vitrified and porcelain tiles. These new entrant product types are said to be the tiles of the future. Internationally these tiles are already the major sellers. This category of products account for 13% of all organized sales in this industry.

These new products and the conventional wall & floor tiles have together made the organized industry grow to a formidable Rs. 3000 crores industry. This coupled with a spate of expansions by many players make the industry look very promising in the future.

The Indian Industry has developed an export market although at the lower end. In volume it constitutes less than half a percent of the global market. (Presently India does not figure in the list of major exporting countries). But this reality could change as Indian exports are rising at the rate of 15% per annum. The top-end of the global export market is presently dominated by Italy (40.8%) and Spain (26.4%). (Source: Compiled using information from Corporate Catalyst India, ASCER and other associations.)

(Source:-http://www.icctas.com)

CERAMIC TILES INDUSTRY IN INDIA ( Industry Highlights) :

Ceramic Tiles today have become an integral part of home improvement. It can make a huge difference to the way your interiors and outdoors look and express.

The Indian tile industry, despite an overall slowdown of the economy, continues to grow at a healthy 15% per annum.

Investments in the last 5 years have aggregated over Rs. 2000 crores and production during 2006-07 stood at approx. 340 million sq mts.

The Indian tile industry is divided into organized and unorganized sector.

The organized sector comprises of approximately 16 players. The current size of the unorganized sector is about Rs 3000 crores

The unorganized sector accounts for 55% of the total industry bearing testimony of the attractive returns from this sector. The size of the unorganized sector is approximately Rs 3500 crores

Revenue earning industry - excise mops up over Rs. 350 crores annually from the organized sector itself.

Indian ranks in the top 5 list of countries in terms of tile production in the world.

With proper planning and better quality control our exports (presently insignificant) contribution can significantly increase.

(Source:-http://www.icctas.com)

CERAMIC TILE 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

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

(Source:-http://www.icctas.com)

3. Competitors Analysis:-

A Brief Description of Major Players:-

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 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.

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 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 Granito India Limited

Asian Granito India Ltd. is a company incorporated in India with headoffice in Ahmedabad. It is listed on Bombay Stock Exchange and having turnover of Rs. 350 Crores in the financial year 2008 – 09. The company is into the manufacturing of various kinds of tiles including vitrified tiles, ceramic tiles, wall tiles and agglomerated marble stones. It is having its manufacturing unit at Himmatnagar. Recently it got its ISO 14001 Certification.

Asian Granito India Limited’s principal activity is to manufacture vitrified tiles. The products include glazed, unglazed, rustic, mattle, homogenous and non-homogenous body. The products also include tile manufactured through water jet cutting, tailor-made designs or customized according to the client requirement. The Group products are used in residential applications, including living/ bed rooms, bathrooms, toilets, kitchens, swimming pools, and verandahs and commercial applications such as airports, hotels, hospitals, offices, supermarkets, restaurants and malls. The products are manufactured in the Ceramics Zone-Dalpur, Himmatnagar, District and Sabarkantha, Gujarat.

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. As a member of Johnson Ceramics International, UK, the global leader in the international tile industry, they have a access to the latest trends and designs prevalent in the international market. 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.

H. & R. Johnson offer a range of wall and floor tile products across various categories. H. & R. Johnson flagship brand is Johnson tiles offering a range of ceramic floor and wall tiles. H. & R. Johnson’s Marbonite brand is India’s No. 1 vitrified tiles brand. The Porselano brand is India’s first Joint-free offering. Endura brand offers specialized industrial and pavement tiles. H. & R. Johnson also offer complete kitchen and bathroom products under our premium brand, Milano.

H. & R. Johnson have the most modern manufacturing plants located across six strategic locations across India. Their plants are located in Dewas (MP), Pen (Maharastra), Kunigal (Karnataka), Karaikal (Tamilnadu), Vijaywada (Andhra Pradesh) and Rajkot (Gujarat). These units employ the best of technology from world leaders in tile manufacturing machinery.

H. & R. Johnson plants are ISO compliant with both 9001 as well as 14001 certifications. Besides this, our units in Dewas, Kunigal and Karaikal are OHSAS 18001 certified for excellence in safety standards.

Euro Ceramics Ltd. :-

Euro Vitrified tiles are manufactured in a sprawling factory at Bhachau, Kutch in one of the most modern automated plants with ISO 9001:2000 accredition. The company commenced operations in October 2003 with first line with installed capacity of 35880 MTPA and the second line of manufacturing with an installed capacity of 44091 MTPA was added on during December 2005.

The quality standards manufactured matches with best international quality standards and have received certification from VJTI- Mumbai and Applied Consumer Services, Inc. - USA.

The factory is managed by highly qualified professionals with in house R&D. Right from the beginning the emphasis has been regarding best quality standards that would match international standards. So Euro Ceramics have selected manufacturing facilities from Sacmi, Italy which is one of the leading suppliers of ceramic manufacturing technology globally. The vitrified tiles manufactured by us are of international standards ISO 13006 / EN 176 Group B1a.

Euro Vitrified Tiles have revolutionized the flooring industry and become the preferred choice not just in India but in the global arena as well. Composition of raw material such as finest ball clay from Ukraine combined with latest production technology in one of the most accurate temperature controlled Kilns up to 1200 degree C makes Euro Tiles completely vitrified with moisture absorption below 0.05%. Super White tiles are based on use of the best technology. Spotlessly White Euro Vitrified Tiles add immense class to any room that needs to make a statement. Euro Vitrified Tiles are designed to last, perfectly flat, stain free, abrasion resistant, non-porous, intensely vitrified and extremely consistent in terms colour, strength and other properties.

Modern technology and innovation are given maximum priority with variety of designs and shades. The accurate recreation of natural stones combined with technical performance of hardwearing material, which is resistant to stains, abrasion; heavy loads etc. make Euro Vitrified Tiles ideal choice for major applications like Commercial Complexes, Residential, Retail, IT Parks etc. Euro Ceramics ensures that size and flatness of each Euro Vitrified Tiles are according to most stringent EN standards by having computerized size and flatness sorting system. Because of this consistency and thickness, Euro Vitrified Tiles can be laid in a simple and fast manner unlike the natural stones. Euro has also ventured into Wall Tiles and provides a stunning International range of Wall Tiles with matching Borders and Motifs, which is a big hit with Architects & Designers. They also have a Lignite based 10MW captive Power Plant for uninterrupted stable supply of power at our plant. Euro Ceramic Ltd. has gone in for major expansion programme for manufacture of Calcarious Tiles with annual capacity of 35000 MTPA.Apart from this ECL have also completed expansion plans of most modern Sanitary Ware project with annual capacity of 11000 MTPA. The Sanitary Ware plant is provided with robotic glazing machines and other high technology equipment from Sacmi of Italy. With these additions Euro is a major conglomerate in building construction industry with range of innovative products and designs to meet requirements of most discerning customers.

Bell Ceramics Ltd. :-

Company Profile:-

Started in 1985 with the aim of manufacturing world-class ceramic glazed tiles.

Plants

Two plants, strategically located near major Indian markets. One near Vadodara, Gujarat, Western India; other near Bangalore, Karnataka, Southern India.

Vadodara plant has production installed capacity of 63.87 lacs square meters per annum of wall and floor tiles.

Bangalore plant has an installed capacity of 82.13 lacs square meters per annum of floor tiles.

Products Range

Wide range of breathtaking products to suit various consumer preferences. Ceramic Glaze Wall Tiles. 200mm x 300mm Ceramic Glazed Floor Tiles. 300mm x 300mm, 400mm x 400mm Also available Edge Cut Floor Tiles in large 397mm x 397mm format for that

joint free look. Bell is a pioneer in making Non-Skid Group-V Series, Floor Tiles in 300mm x

300mm, 400mm x 400mm & In Edge Cut – 397mm x 397 mm. These tiles are “Grandfather friendly & Grandson proof “

Exhaustive product range with a wide range of designs, colours, patterns, surface finishes.

ISO 9001:2000 and ISO 14001 manufacturing facilities strategically located near prime markets in India.

The Company Well-spread and well-connected distribution network comprising 29

Depots, more than 1000 Dealers and over 4000 Retailer to ensure optimal delivery.

Country-wide connectivity of depots through world-class ERP software adds to effective outbound logistics, inventory and receivable controls.

Exports to some of the most demanding markets of the world. Also available Edge Cut Floor Tiles in large 397mm x 397mm format for that

joint free look. Feted with many awards for performance including Certificate of Merit

conferred by the President of India for meritorious performance in Exports. Keeps in touch with end-users, influencers and channel partners with

regularly organized events, exhibitions and meets.

Strengths

Consistent growth of 12-15

Weakness

Not much importance given on

percent inspite of slowdown in economy

The Indian ceramic export market is rising at the rate of 15 percent per annum

brand building and network thus creating hindrance for export growth

Low per capita consumption (0.15 sq. mt. p.a.) as compared to developed nations

Opportunities

The Construction and Housing Boom

to provide bolstering demand for ceramic tiles

The untapped rural market supported by a strong growth witnessed by Indian Agriculture provides tremendous potential for the domestic ceramic manufacturers

Threats

Freight, supply of power and gas remains the key cost-related issues impacting the industry

Basic Customs Duty on import of ceramic tiles from china and raw materials imported from abroad should be corrected to prevent dumping of tiles form china.

4. SWOT Analysis:-

5. Supply chain of ceramic tiles industry:-

A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains link value chains.

In this Ceramic Industry we can say that the “Company” makes the final Product and delivered it directly to the “Direct Project” (site) or to the “Dealer/wholesaler”. From the Direct Project Site it goes to the “Builder” or “Contractor” or to the “User”, as ordered or required by them. From the Dealer or Wholesaler, it reaches to the “Retailer” and then to the “User”.

6. 4Ps of 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.

7 . Growth: -

Where We Stand Today :- As a foreign exchange earner or a global player, Indian Tile industry has captured the attention of the world in the ceramic tiles segment. India is projected to figure in the top 3 countries manufacturing ceramic tiles by 2010. This however is subject to policies favourable for the tile industry to complete with international

players on an even ground. To compete internationally, our plants must be geared up to large units currently operating in China and Turkey is driven by economies of scale. These will also help us in lowering our cost of production significantly. Also, infrastructural support is a key factor that determines the speed of growth. Better infrastructure will bring in better growth in terms of consistency and sustenance. Freight, supply of power and gas remains the key cost-related issues impacting the industry. Availability, consistent supply and reasonable rates are extremely important for the growth of the ceramic tile industry. Also, the prevailing anomalies pertaining to Basic Customs Duty on import of ceramic tiles from China and raw materials imported from abroad need to be corrected to prevent dumping of tiles from China. Rural thrust should be enhanced by favourable excise duty and MRP structure.

(Source:-http://www.icctas.com)

Indian Growth Trends (Production):-

Production of Ceramic Tiles in India

Source:Department of Industrial Policy & Promotion

• Indian ceramics industry provides employment to 550,000 people, of whom 50,000 are directly employed.

• As per 2007-08 estimates, there are at present 16 units in the organized sector, with an installed Capacity of 21 lakh million tonnes (MT). This accounts for 2.5 per cent of the world ceramic tile production. The ceramic tile industry has been growing at about 12 per cent per annum.

• In 2007-08, production of ceramic tiles was estimated to be at a 290.00 million square meters as against 220 million sq. meters of ceramic tiles, out of the global production of 6,400 million sq. meters during 2006-07, when India was ranked 7th in the world in terms of production of ceramic tiles produced.

• Gujarat accounts for around 70 per cent of total ceramic production, and the unorganized sector, comprising entirely of SMEs, manufactures a staggering 37 per cent of the country’s total ceramic output.

• India ranks fifth among tile makers globally, with the unorganized sector accounting for 55 per cent of the country’s total tile business, according to the Indian Council for Ceramic Tiles and Sanitary ware, an organization of tile makers.

Production of tiles stands at about 340 million sq. m a year, and annual turnover for the organized sector is about Rs 2,865 crore (US$ 588.77 million), while it is about Rs 3,500 crore (US$ 719.21 million) for the unorganized sector.

• The size of the unorganized ceramic tiles industry - comprising wall tiles, floor tiles and fully vitrified tiles - is around US$ 3.5 billion. These are exported to East and West Asian countries.

• In sanitary ware industry, at present, the production capacity in organized sector is 1.43 lakh MT per annum, and 3, 65,695 MT productions have been estimated in 2007-08. In the small scale sector, there are over 200 units with capacity of 53,000 MT per annum. The industry turnover is above Rs 500-600 crores (US$ 102.77 million - US$ 123.32 million) per annum. Sanitary ware industry has been growing by about 5 per cent per annum during the last two years.• Pottery ware, signifying crockery and tableware, are produced both in the large scale and the small scale sectors. There are 16 units in the organized sector, with a total installed capacity of 43,000 MT per annum and the production was estimated at 58,781 MT for 2007-08. Small-scale sector has over 1,200 plants, with a capacity of 3 lakh MT per annum. Bone china and stoneware contribute to the major portion of the production of ceramics tableware.(www.imsme.orgUpdated on February 03, 2009 )

India’s Exports in Ceramic Tiles :-

Exports from Indian Sanitaryware Industry

Source: IBEF

• India exports ceramics worth approximately US$ 1 billion per annum. The main export products are chemical porcelain and insulators, handicrafts, art ware and stoneware crockery.

• The ceramic tile industry has shown a growth rate at about 12 per cent per annum. These are exported to East and West Asian countries. The exports during 2006-07 amounted to Rs 251.20 crores (US$ 51.63 million).

• The exports in sanitary ware industry was to the tune of Rs 93.49 crores (US$ 19.21 million) during 2006-07.

• The export of pottery ware during 2006-07 was of the order of Rs 45.50 crore (US$ 9.35 million) and major markets include the US and Europe.

(Source:-http://www.icctas.com)

Future Prospects(opportunities) for CERAMIC Tile Industry:-

The Market for Ceramic Tiles is considered very good as there is boom in construction activities everywhere

There are number of technologies available from low cost segments to highly advanced designer products for the Homes of upper rich class

The largest markets for ceramic tiles in the Europe are Italy, Spain, Germany, France, and the United Kingdom.

The European ceramics industry continues to be highly competitive internationally, with strong production concentrations in Sassuolo (Italy about 180 firms) and Castellón (Spain over 200 firms) areas, and sizeable activities in Germany, Portugal and France.

The Italian ceramic tile industry is the world leader both in terms of production and exports. Italian production is concentrated in the provinces of Modena and Reggio Emilia, whose ceramic tiles production constitutes the 80 percent of the overall Italian total.

China, Turkey, Egypt, South Africa, Morocco, Thailand, Tunisia are major exporters

The most important distribution channel is the wholesale channel. Relatively new trade channels that are becoming important are the DIY channel and the “bathroom boutiques”. Another channel to be mentioned is based on the installer with his own showroom or shop. In most cases, these companies are buying directly from the manufacturers or importers.

As the manufacture of Ceramic Tiles, is energy intensive there is the need for energy conservation & related pollution control & productivity measures.

Market Growth also depends on factors such as house building, non-domestic, key applications - conservatories, showers & en-suites, under floor heating, the use of pods in construction(Source:-http://www.icctas.com)

Indian Government Initiatives:-Recognizing the potential of this sector, the government has undertaken several policy initiatives to boost growth. The National Program for Energy Efficiency in

SME Ceramic Industries in India has been launched by UNIDO in collaboration with the Department of Industry Policy and Promotion (DIPP), Ministry of Commerce and Industries, Government of India. The main objectives of the programmes are:• Build capacity with regard to managers, workers, enterprises, and strengthening of institutional structures and policy framework.• Technology up gradation of selected ceramics units at Thangadh, Khurja and Morbi by adoption of energy-efficient technologies and processes and improving their competitiveness by achieving economies of scale, improving productivity, introducing new designs, adopting international standards and encouraging quality controls.• Promotion of India’s brand image and enhancing quality of ceramic products.

The government established Central Glass and Ceramic Research Institute (CGCRI) under the Council of Scientific & Industrial Research which started functioning in 1944. During the 1980s, the institute has renewed its emphasis on the Indian small scale sector and rural pottery through the use of village level artisans. The institute also set up two extension centers in Khurja (Uttar Pradesh) and Naroda (Gujarat), which are helping local industries in introducing new technologies, beside upgrading existing ones. The expertise generated by CGCRI at Bankura in the Indian state of West Bengal helped local artisans produce pottery, based on locally available clay. This was a tremendous boost for the artisans and led to the setting up of the Ceramic Centre for Rural Development, Pachmura, Bankura. During May-June 2007, a twenty-two member delegation from the Indian ceramics industry visited China on an exposure –cum-study tour of ceramics manufacturing units. They interacted with technology suppliers on different aspects of kiln and other equipments used in ceramics units. In March 2008, French industrialists and six major companies under the ‘Ceramics Competitiveness Cluster’ participated in “Indian Ceramics 2008”, organised in Mumbai. The main objectives for the delegates were to initiate alliances with Indian partners and present French skills and expertise in industrial research and development in the field of ceramics. ‘Indian Ceramics 2009’ is scheduled to take place at Ahmedabad inGujarat, the most significant commercial and industrial centre, on 3-5 March 2009.

8. Bibliography:-

http://www.bullishindian.com/asian-granito-india-limited-ipo-asian- granito-ipo- details/435/

http://www.somanyceramics.com/company.asp http://www.moneycontrol.com/company-facts/ http://www.kajariaceramics.com/ http://www.hrjohnsonindia.com http://www.orientceramicsindustries/com http://www.bellceramic.com/ http://www.imsme.org/ http://www.icctas.com/ http://www.wikipedia.com/ http://dipp.nic.in/industry/content_industries/CERAMIC%20INDUSTRY.htm