Presentation on theme: "ASIAN GRANITO INDIA LIMITED. 2 Industry Overview Product Characteristic Company Overview Key Competitive Strengths Business Strategy Clientele Summary."— Presentation transcript:
4 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.
5 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 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 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%
14 Industry: Growth Drivers Key FactorsDetails 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
18 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 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
19 AGIL GROUP Asian Granito India Limited VITRIFIED Existing 16000 m² per day CERAMIC WALL 9,300 m² per day PROPOSED MARBLE PROJECT 2500 m² per day Asian Tiles Limited CERAMIC FLOOR Existing 7,000 m² per day Business Structure
Product Range Vitrified Segment Polished Vitrified The Grand Rock Rock Slab Multicharge Vitrified rustic Aqua Art Wall Tiles Segment Second firing Third Firing Ceramic Segment Rustic Metallic Robusto Vitro AquaMosaic Porcelano Product Range
21 Capacity Milestones ParticularsVitrified Tiles (square meters per day) Wall Tiles capacity (square meters per day) Ceramic Tiles capacity ( square meters per day) Installed14,411 *1910 *7000 Actual Capacity Utilisation (%) 96.50%-92.89% As on 31/03/08 1600093007000 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 Competitive Strength 23 Key FactorsDetails 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 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 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
33 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.
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