4Tile Industry-An Outlook Used as paving or cladding material since ancient times.Technological advances have made production process lesslabour incentive and lowered cost.Industry is almost 100 years old and comprises mainly- ceramic tiles- sanitary wares- crockery itemsIn India growth rate is approx. 12% to 15% P.A.4
5Contd… Mainly Three segments – - Wall Tiles segment - Floor Tiles segment- Vitrified & Porcelain segmentThe size of Indian tile industry is estimatedto be around Rs.65,000 millions,which is almost equally divided between- Organized and- Unorganized sectors.5
6The 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
7Contd… Ceramic Tiles is a generic word which includes :- Ceramic Floor tilesUnpolished vitrified tilesPolished vitrified tilesPorcelain tilesCeramic Wall tilesRustic tilesDouble Feeder tiles
8Global ScenarioThree major regions in the world that bulk produce and export ceramic, vitrified tiles.1.ASIA-China, India2.LATIN AMERICABrazil3.EUROPEAN UNIONItaly, SpainWorld production6900 Million sqm
9Vitrified 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.
10Business OpportunityMainly 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.
13The 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 to 8%
14Industry: Growth Drivers Key FactorsDetailsConstruction sectorDouble Digit growth for the last three yeasGrowth in construction, retail and housing business big positivesReplacement MarketReplacement market growing in sizeNew, innovative and user friendly designs have helped in creating a large marketGovernment InitiativesExcise Duty rationalised from a high of 55% to 8% currentlyImposition of anti dumping duty\Reduction of Custom duty from 15% to 5%Reduction in effective Sales Tax rate in VAT regimeRise in income levels & affordabilitySubstantial increase in real income levels gives more options to end usersLarge and expanding middle class leading to increasing demandDownsizing of unorganized playersVarious entry barriers such as high capital investment, Continuous technology up gradation and better brand image14
18Company ManagementMr. Kamleshbhai Patel, Chairman Cum Managing DirectorIn charge of the marketingDeveloped sales network of company all over India – 10 display house, 19 depots, 300 distributors, 3000 Business AssociatesMr. Hasmukhbhai Patel, Managing DirectorIn-charge of finance, administration and legal departmentsMember of several industry bodies – Director of the IndianCouncil of Ceramic Tiles Industry, New DelhiMr. Mukeshbhai Patel, Whole time DirectorIn-charge of operations and the proposed projectRich 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 DirectorInvolved in brand promotion and marketing activitiesSeveral years of experience in the ceramic industry18
21(square meters per day) Capacity MilestonesF.YParticularsVitrified Tiles(square meters per day)Wall Tiles capacity(square metersper day)Ceramic Tiles capacity( square metersInstalled14,411 *1910 *7000Actual Capacity Utilisation (%)96.50%-92.89%As on 31/03/08160009300* 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,2008.21
23Key Competitive Strength Key FactorsDetailsDedicated and experienced management teamCompany promoters have an average experience of 13 years in the ceramic industryPromoters take an active and personal interest in the day-to-day operations and are aided by a experienced and professional management teamImproved production processCo. Uses MIS (Management information systems) tools for running operations at optimal efficiencyAverage capacity utilization of its plant in excess of 90% in FY2008Quality productsAll the company’s facilities have been ascertained ISO – 9001:2000Proximity to raw material sourcesCompany’s units are based in Gujarat which are close to raw material sources in RajasthanAdvantage of proximity to Kandla PortCompany avails of LNG supply through pipelinesFocus on innovationResearch team comprises 6 people headed by president of production departmentCompany has introduced a large no. of colors, designs and size variations in the Indian vitrified tile market23
24Key Milestones & Achievement Production Capacity :-Started with Asian Tiles Limited in 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 with per day 4000 sqm. Capacity and increased the capacity 4 times in four years.Started wall tile plant in the year with per day 9300 sqm. Capacity.
25Other AchievementsAcquired Biggest Ball Mill of 30 tons, longest Kiln of 121 mtrs in and biggest Press of 3590 MT from World leaders SACMI ITALYLaunching 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%.
33Business StrategyOffering a complete spectrum of tiling solutions for the construction industryFocus on the export marketExpanding our sales and distribution networkFocus on Product Innovation33
34Raw 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.
41Summary High Growth potentiality of the Industry Strong and experienced managementContinuous Growth in production CapacityContinuous various Product InnovationStrong marketing networkWell established Brand ImageFuture Planned Strategy