Overview of India s Bathroom Kitchen Industry

8/9/2019 Overview of India s Bathroom Kitchen Industry

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Overview of India‘s Bathroom &Kitchen Industry

Content1. Why India? - Mar et overview

Projected population Old-age dependency ratio Per CapitaIncome (PPP) Savings Rate Urbanization RatePolitical c anges in recent elections in !ay "#$%

!. Construction and "ea# $state industry in IndiaConstruction mar&et value

%. Bathroom ttin's & (anitary ware industry in India'at room ttings sanitary *are mar&et value

+rends in bat room ttings sanitary *are industry in India 'rands related tobat room presented in India

). Modu#ar itchen industry in India!odular &itc en industry mar&et value

+rends in modular &itc en industry in India'rands related to &itc en presented in India

*. Ceramic ti#es industry in IndiaCeramic tiles industry mar&et value +rends in ceramics tiles industry inIndia'rands related to ceramic tiles presented in India


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1. Why India? + Mar et overview

India is t e " nd largest population in t e *orld, a ig percentage ( ./) o0 * ic areincome earning1

Increasing level o0 income and gro*ing spending rate1

Rapid urbanization, strongly supported by ne*ly elected 2overnment1

+ e member o0 'RICS3 t e 0astest gro*ing countries in t e *orld1

India, as it stands today, is on t e trajectory o0 becoming t e *orld4s 5rd largest economy by "#"#1

With a ,o,u#ation of 1.% i##ion +*/ are income earnin'

6 India o7ers a uge mar&et 0orinternational corporations1 +alent, oneo0 t e &ey elements 0or any business,is plenti0ul and available at a lessercost compared to developing nations1In t e past decade, * en t e economy*as in good s ape, t e manu0acturingand service sectors ac ieved a gro*trate o0 818/ and 91 / respectively1(:ones ;ang ;asalle)

Projectedpopulationo0 India int ousands

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Source3 O7airs1

O#d-a'e de,endency ratio , * icmeasures t e number o0 elderlypeople as a s are o0 t ose o0 *or&ingage, *ill rise s arply in most countriesover t e ne?t %# years, according tot e @uropean Commission1 + e biggestabsolute increase *ill be in :apan,* ere t e ratios o0 5.1$/ in"#$#, already t e *orld4s ig est, *illmore t an double, to 851A/, by "#.#1India as t e lo*est old-agedependency in "#$# and is projectedto old its leading position in "#.#1(+ e @conomist, 0rom t e print edition3@conomic and nancial indicators )

Source3 @uropean Commission

B en combined *it t e 'rowin' Income 0er Ca,ita 00023 ur anisation rate ,an increasing number o0 nuclear 0amilies and an increasing 0ocus on spending, t econsumer mar&et potential is clear1 + e diversity in spending patterns, eating abitsand li0estyle c anges ( focused on hi'her s,endin' ) in various parts o0 t ecountry o7er a sizable mar&et 0or a range o0 industries *anting to set up t eir o


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Source3 International !onetaryund Source3 Borld 'an&


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4rowin' 7r anisation "ate in India is o served every year. !umbai is t e most populous cityn India, and t e 0ourt most populous city in t e *orld1 !umbai accommodates $A1% million people,

and is t e largest metropolis by population in India, 0ollo*ed by Del i *it $ 15 million in abitants1>ccording to a survey by UE State o0 t e Borld Population report in "#$5, by "#5#, %#18 / o0 countryFs population is e?pected to reside in urban areas1 India *ill lead t e *orldFs urbanpopulation surge by "#.# as per Borld 'an&1

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Source3 Borld 'an&

8fter swee,in' ,o#itica# chan'es in recent e#ections in May !91)3 e?ecutives in India reportdramatically rene*ed optimism 0or t eir country4s economic prospects, even as pessimism persistsn ot er emerging mar&ets1 In !cGinsey4s latest survey on economic conditions, many respondents

believe domestic and global conditions ave improved and *ill improve in t e coming mont s1 + evictory o0 Prime !inister Earendra !odi4s ' aratiya :anata Party in !ay "#$%, 9 percent o0e?ecutives in India no* e?pect t e country4s economy *ill improve during t e ne?t si? mont s1

(ur'in' o,timism in India after new#y e#ected 4overnment


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Source3 !cGinsey 2lobal Survey3 @conomic Conditions Snaps ot, :une "#$%


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!. Construction and "ea# $state industry in India

India is poised to be *orld4s 5 rd largest construction mar&et by "#".1

+ e construction industry is t e second largest industry o0 t e country total mar&et size is estimated at USH $9# billion1

+ e real estate mar&et is one o0 t e 0astest gro*ing sub-sectors o0 construction industry in Indiaand its mar&et size is e?pected to touc USH $A# billion by "#"#1

Eearly "9# ### residential units are under construction in !umbai residential mar&et1 (:ones ;angasalle)

2overnment o0 India is actively striving to*ards stimulating construction activities in t e country ase construction sector is t e second largest employer and contributor to economic activity, a0ter

agriculture sector1

Construction industry value inIndia in USH billion

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Source3 Construction Industry Development Council

%. Bathroom ttin's & (anitary ware industry in India

ndian sanitary *are mar&et to *itness robust gro*t due to rising sanitary a*areness en anced byncreased level o0 income and government programs 0or educating ouse olds about sa0e sanitation1+ec sci Researc )

>bundant availability o0 ra* material and lo* labour cost India is emerging as a sanitary *aremanu0acturing ub1 :(I;3 Cera India3 "oca India3 Koh#er India3 uar andCom,any and many ot ers ave set up manu0acturing 0acilities in t e country1 (+ec sci Researc )

J>round 9/ ouse olds in rural areas and about $9/ ouse olds in urban areas in India do notave access to sa0e sanitation1 + is indicates t e latent opportunity in t e country4s sanitary *are

mar&et1K Karan Chechi3 "esearch 5irector of


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aunc o0 t is store adds to Go ler4s aggressive e?pansion plan in India1 N'at *ays4 brings 0ort t ebest in Go ler4s port0olio o0 bat room products and o7ers an elevated e?perience to discerningconsumers1K (a#i# (adanandan3 Mana'in' 5irector3 Koh#er Kitchen & Bath India


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ncreasing presence o0 0oreign players3 Initially, domestic players dominated t e mar&et in t issegment1 =o*ever, 0oreign players are gaining popularity as more and more customers *is topurc ase imported products1 + ere ave been some tie ups bet*een 0oreign players and domesticplayers in t is segment1 (P*C)

ndian customers are gradually ,urchasin' more ,remium and hi'h techno#o'y ,roducts 0oreir bat rooms due to increase in t e spending po*er *it increasing environmental a*areness,

customers are moving to*ards eco-0riendly sanitary-*are and bat room ttings t at elp in t econservation o0 *ater + e premium segment is estimated to comprise about $# to$"/ o0 t e totalmar&et1 (P*C)

+ e sanitary *are and bat room ttings industry in India toget er is estimated to be valued around!A mi##ion 7(5 in !91) 1 + e sanitary *are segment is estimated to be valued appro?imately $"%

million USD in "#$% * ile t e bat room ttings segment is estimated at appro?imately 5#5 millionUSD in "#$%1 + e Indian sanitary-*are mar&et accounts 0or / of the '#o a# ,roduction and ran&ssecond in terms o0 volume in t e >sia-Paci c region1 + e government initiatives and boom in t e realestate sector *ill 0urt er contribute to t e gro*ing demand o0 sanitary *are and bat room ttingsproducts in t e country *it t e 'row at the C84" (compound annual gro*t rate) o0 about 1!.*/

and 1*/ respectively bet*een "#$"-"#$A1 + e demand 0or sanitary *are is ig est in residentialsector 0ollo*ed by demand 0rom commercial sector including malls, otels, and ospitals1

Bathroom industry va#ue in India in7( mi##ion

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Sanitary*are 'at room ttings

Source3 P*C


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products1 Solutions suc as ig e


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ome of the rands re#ated to athroom ,resented in IndiaD

). Modu#ar itchen industry in India

+ e modular &itc en mar&et in India as been 'rowin' at a rapid rate %9/ ,er annum , albeit 0roma lo* base1 >ccording to industry e?perts, t e mar&et *as appro?imately %)% mi##ion 7(5 in siEe in91! , and could gro* to about F 9 mi##ion 7(5 y !91 1 + e mar&et is largely unorganised *it

e presence o0 local and small players1 + e unorganised mar&et (estimated at 8# to 8./ o0 t e total)ncludes carpenters ma&ing custom-designed &itc ens based upon t e reLuirements o0 t eouse olds1 !odular &itc ens account 0or an estimated "./ o0 t e organised ome interior mar&et1

+ e mar&et is e?panding as t e demand is no longer restricted to t e upper middle class, but isgaining popularity among ot er socio-economic classes also1

Modu#ar itchenva#ue in 0ercenta'e of or'aniEed and

India in 7(mi##ion

unor'aniEed se'ment in the

modu#ar itchen mar et$"##1#

Organized$###1# segment

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"#$" "#$5"#$% ( ) "#$. ( )"#$( ) segment

Source3 P*C Source3 P*C

ore t an */ of interest and investments in modern &itc ens comes 0rom +op cities li&eumbai, Del i, 'angalore, C ennai, =yderabad, Pune, and Gol&ata1

J+ e demand 0or modular &itc ens is gro*ing particularly 0or branded Luality products1 >s t e

demand 0or apartments gro*s and li0estyles c ange, style, convenience and e


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Matey3 COO3 :&" =ohnson.

J+ e modular &itc en industry as great potential and is gro*ing in e?cess o0 5#/ per annum1 >s perestimates, modular &itc ensN penetration in large to*ns is less t an $#/ so t e opportunities aremmense1K (u odh Mehta3 8ssistant @ice

0resident3 4odre


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Gew ,#ayersDSeveral@uropeancompanies(particularly0rom Italy,2ermany and>ustria) as*ell as t e!iddle @ast

ave recentlyentered t eIndian mar&et1


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*e *ould deliver in ne?t "-5 years1!iele is planning to e?pand itsnet*or& in tier " cities and increaseits point o0 sales to # in t e ne?tt*o years 0rom %# at present1K5hanan ay Chaturvedi 3Mana'in' 5irector3 Mie#e India

(ome of the rands re#ated toitchen ,resented in IndiaD


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*. Ceramic ti#es industry in India

+ e Indian ceramic tiles mar&et size is estimated to ave been %8A. million USD in "#$" and ise?pected to reac A5 9 million USD by "#$ gro*ing at a C>2R o0 $./1 + e Indian ceramic tilesmar&et ran&ed t ird globally and accounted 0or over / o0 t e total global production in "#$"1 + eorganised segment ma&es up appro?imately .#/ o0 t e sector, and t e top eig t manu0acturersconstitute over 8./ o0 t e organised mar&et1 > large number o0 small or medium-scale manu0acturersoperate in t e unorganised segment, mainly t roug plants in 2ujarat1 Eearly .#/ o0 t e mar&etconsists o0 vitri ed tiles 0ollo*ed by oor tiles *it "5/1

Ceramics ti#es va#ue inIndia in

7( mi##ion Ceramic ti#es mar et$#### se'mentation

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### "#/ Ball +ileSloor +iles%###

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itri ed +iles# Industrial +iles

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Source3P*C

Source3P*C


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ome of the rands re#ated to ceramic ti#esresented in IndiaD

Overview of India s Bathroom Kitchen Industry

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