1. ASIAN GRANITO INDIA LIMITED

2. Product Characteristic Company Overview Key Competitive Strengths
Industry Overview
Product Characteristic
Company Overview
Key Competitive Strengths
Business Strategy
Clientele
Summary 2

3. INDUSTRY OVERVIEW

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. 4

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. 5

6. 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

7. 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

8. 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

9. 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.

10. 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.

11. Market Characteristics of the Tile Industry

12. Threats to the Industry

13. 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 to 8%

14. 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 14

15. PRODUCT CHARACTERISTICS

16. Basic characteristics

17. COMPAY OVERVIEW

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 18

19. Business Structure 19

20. Product Range

21. (square meters per day)
Capacity Milestones
F.Y
Particulars
Vitrified Tiles
(square meters per day)
Wall Tiles capacity
(square meters
per day)
Ceramic Tiles capacity
( square meters
Installed
14,411 *
1910 *
7000
Actual Capacity Utilisation (%)
96.50% -
92.89%
As on 31/03/08
16000
9300
* 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

22. KEY COMPETATIVE STRENGTH

23. Key Competitive Strength
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 23

24. Key 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.

25. Other Achievements
Acquired Biggest Ball Mill of 30 tons, longest Kiln of 121 mtrs in and biggest Press of 3590 MT from World leaders SACMI ITALY
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%.

26. NETWORKING DISPLAY HOUSES

32. BUSINESS STRATEGY

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 33

34. 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.

35. CLIENTELE

36. Clientele 36

40. SUMMARY

41. 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

42. THANK YOU