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A
Project Study Report
On
POTENTIAL ANALYSIS OF MARKET SHARE
&
SATISFACTION OF DEALERS
Training Undertaken at
KAJARIA
Submitted in partial fulfilment for the
Award of degree of
Master of Business Administration
SUBMITTED BY: - SUBMITTED TO:DIPESH PARASHAR MS. BINDIYA TATER
MBA II SEM (LECTURER)
SHOBHASARIA ENGINEERING COLLEGE, SIKAR
SESSION:-2009-2011
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PREFACE
Learning categorizes you and practicing on that learning specializes you. Theoretical
concepts taught and discussed in the classroom prove useful if they have to remain
relevant. Practice orientation of management student is must generating competence to
deal with issues at grass root level it is for this reason that six week training project study is
prescribed as a part of syllabus for MBA PROGRAME in Sikar. This training is the mode of
imparting practical training to the student. The objective is to provide a deep insight into
practical aspects of the functioning of the organization. The train apprises the student to the
actual function, responsibility and problem faced by an organization. It provides him with the
knowledge of the various kind of problem that crop up in the day to day functioning of the
organization .The way they are solved by the departments and appraisal of the crucial
decision taken by the manager at the crucial time. I was fortunate enough to complete my
finance training at BHARAT ENGINEERING COMPANY. Bar-Pali road Raipur Marwar, (raj)
website [email protected] This has given me an altogether new experience, which
would be immense help to me in my future.
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ACKNOWLEDGEMENT
I express my sincere thanks to my project guide, Ms.Bindiya tater, Lecturer, M.B.A
Department for guiding right form of inception till the successful competition of the
project. I sincerely acknowledge him for extending their valuable guidance, support
for literature, critical reviews of project and the report and above all the moral support
she had provided to me with all stages of this project.
I would also like to thanks the staff of M.B.A Department for their help and
cooperation throughout my project.
Dipesh Parashar
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EXECUTIVE SUMMARY
The project was undertaken to Potential analysis of market share and level of satisfaction
of dealer and sub- dealer of Kajaria and to adopt the best practices of the industry to serve
the customer. To accomplish the above, around 100 dealers and sub-dealers of Kajaria
ceramics limited JAIPUR was surveyed and interviewed. The core purpose of the survey
was to find out dealers perspective towards the mainly induction that are given to them. An
interview based on a questionnaire to know what does the customer feels in general
towards its organization. The idea behind the study is to adopt the best practices and to
eliminate the pitfalls of the system. The project is an approach is how to give feedback on
training method effectiveness in meeting the objectives of the organization.
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TABLE OF CONTENTS
1. INTRODUCTION OF INDUSTRAY 7
2. INTRODUCTION TO THE ORGNISATION..10
3. RESERCH METHODOLOGY............................................45
4. DATA ANALAYSIS AND INTERPERTATION.....................50
5.FACTS AND FINDINGS.....................................................55
6.CONCLUSION..................................................................69
7. SUGGESTIONS................................................................72
8. SWOT ANALAYSIS...........................................................76
9. BIBLIOGRAPHY...............................................................81
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INTRODUCTION OF
THE INDUSTRY
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History of TilesThe Latin word tegula and its French derivative tuile mean quite precisely a roof tile of
baked clay. The English tile is less precise, for it can in addition be used of any kind of
earthenware slab applied to any surface of a building. the word ceramic comes from the
Greek word keramos meaning pottery, it is related to an old Sanskrit root meaning to burn
but was primarily used to mean burnt stuff.
Historically, man has desired to create living spaces which were beautiful, durable and user
friendly. With that in mind, ceramic tile has been made by man for 4000 years. Beautiful
tiled surfaces have been found in the oldest pyramids, the ruins of babylon, and ancient
ruins of Greek cities. Decorative tilework was invented in the near east, where it has
enjoyed a longer popularity and assumed a greater variety of design than anywhere in the
world. During the Islamic period, all methods of tile decoration were brought to perfection in
Persia. In Europe decorated tiles did not come into general use outside Moorish Spain until
the second half of the 12th century. The tile mosaics of Spain and Portugal, the majolica
floor tiles of renaissance Italy, the faiences of antwerp, the development of tile iconography
in England and in the Netherlands, and the ceramic tiles of Germany are all prominent
landmarks in the history of ceramic tile
The technique of tile and its secrets of trade were safely guarded and orally handed from
father to son and master to student; thus rarely have designs, patterns and details of
technique been documented and few complete treatises exist on the art of tile work in the
past. each tile was hand-formed and hand-painted, thus each was a work of art in its own
right.
Simply defined, ceramic tile is tile made of clay. tiles were made by hand, in early days clay
bricks - made by flattening the clay and cutting pieces into shape were dried beneath the
sun or baked. Later the only mechanical aid was a wooden mould carved in relief, which
indented a pattern on the clay slab. The slab was dried and the impression filed with clay,
which after further drying was shaved flat. After the formation of the tile body, ceramic tiles
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go through a firing process in a kiln under very high heat to harden the tile body and to
create the surface glaze. Historically,
Unglazed tile was fired once. Glazed tile was fired twice. The first firing formed a tile body
calledbisque. The biscuit firing had the highest temperature at 1060 C that fixed the tiles
for size and shape. After glazing the tiles were fired at about 1020 - 1240 C. on glaze
decoration was fired at 750 C, just before the glaze began to melt. The modern tile industry
was advanced by reviving the lost art of encaustic tile making. The industry was further
revolutionized in the 1840s by the dust-pressing method which consisted of compressing
nearly dry clay between two metal dies. Dust-pressing replaced tile-making by hand with
wet clay, and facilitated mechanization of the tile-making industry.
Ceramic tile was used almost everywhere on walls, floors, ceilings, fireplaces, in murals,
and as an exterior cladding on buildings. Today 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 like floor, front elevation, roof, parking and places like
medical centres, labs, milk booths, schools, public conveniences, shopping malls and
numerous other centres .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.
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Future of tile Industry
In order to maintain market growth, tile manufacturers will concentrate on developing and
promoting new tile products, including modular or cladding tile, larger-sized tile, slip- and
abrasion-resistant tile, and tile with a polished, granite or marble finish. This is being
accomplished through the development of different body formulations, new glazes, and
glaze applications, and by new and improved processing equipment and
Techniques. Automation will continue to play an important role in an effort to increase
production, lower costs, and improve quality. In addition, changes in production technology
due to environmental and energy resource issues will continue.
Global Tiles Industry
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 2009, they had jointly
produced more than 87% of the global output. World production of ceramic tiles was 7765
million sq.mt. In 2009.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 percent.
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 bySpain 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 51percent, Europe for 26 per cent and USA accounting for 18 per
cent of the total global ceramic tile consumption.
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Ceramic tiles as a product segment has grown to a sizeable chunk today at 340 MillionsSquare 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 robustgrowth of 12-15% consistently over the last few years. Today, India figures in the top 5countries in the world manufacturing ceramic tiles.
The key drivers for the ceramic tiles in India are the boom in housing sector coupled bygovernment policies fuelling strong growth in housing sector. The retail boom in the Indianeconomy has also influenced the demand for higher end products. Overall the bullishgrowth estimates in the Indian economy has significantly influenced the growth of the IndianCeramic 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 andsurface effects. They cater to tastes as varied from rustics to contemporary marble designsin super glossy mirror finishes.
Both, traditional methods of manufacturing (tunnel ) and the latest single fast firing methodsare deployed in manufacturing. Some of the latest trends in manufacturing methods can beseen in India.
The investments in the last five years are approx. Rs 2000 crores. The industry also enjoysthe unique distinction of being highly indigenous with an abundance of raw materials,
technical skills, infrastructural facilities despite being fairly capital intensive. A total of over5,50,000 people are employed in the sector. Out of this, 50,000 people are directly
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employed and 5,00,000 are indirectly associated. The potential is huge considering the percapita consumption of ceramic tiles in India. Currently it is at 0.30 square meters per personin comparison to over 2 square meters per person for like countries like China, Brazil and
Malaysia
Current status of the IndustryThe 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. These 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%).
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Indian Tile Market
Ceramic Industry in India is about 100 years old and has matured over time to form an
industrial base. From traditional pottery making, the industry has evolved to find its place in
the market for sophisticated insulators, electronic and electrical items. Over the years, the
industry has been modernising through new innovations in product profile, quality and
design to emerge as a modern, world-class industry, ready to take on global competition.
Though there are a number of large companies in the ceramics sector, small and medium
enterprises (SMEs) in India, offering a wide range of articles including crockery, art ware,
sanitary ware, ceramic tiles, refractory and stoneware pipes among others. Most of theplayers are grouped together in clusters.
Over the last two decades, the technical ceramics segment has recorded an impressive
growth propelled by the demand for high-alumina ceramics, cuttings tools and structural
ceramics from the industry. Overall, the Indian ceramics industry has emerged as a major
manufacturer and supplier in the global market.
India ranked 5th in terms of total production. Investments in the last 5 years have
aggregated over Rs. 2000 crores and production during 2006-07 stood at approx. 270
million sq mts and having a share of more than 4.3% (organised and unorganised) with
China being the leader with 36% share. There are, at present, 16 units in the organized
sector with an installed capacity of 21 lakh MT. It accounts for about 2.5% of world ceramic
tile production. The organised sector is characterised by the existence of a few large
players, such as H & R. Johnson, Kajaria Ceramics, Bell Ceramics, SPL, Spartek and
Murudeshwar Ceramics, OCIL and Nitco.
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 .Of the total market size floor tiles constitute 53%, wall tiles 35% and vitrified
tiles 12%. The industry has grown at a rate of 15% p.a. for the past three years. In India,
per capita consumption of ceramic tile is 0.15 sq. mtr. Per annum compared with 2 sq. mtr.
per annum in China and 5-6 sq. mtr. Per annum in European countries. With the growth in
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the housing sector the demand of ceramic is expected to increase. Indian tiles are
competitive in the international market.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.
Size of the vitrified tiles market is estimated at Rs.600 crores and is growing at the rate of
30% p.a. making it the fastest growing segment in the tile industry. Some of major players
in the vitrified tiles industry include organised companies like Murudeshwar Ceramics, H&R
Johnson, Bell Granito and Regency Ceramics. In the unorganised sector, some of the
major players are Euro Ceramics, Decolite Ceramics, Regent Granito, Varmora Ceramics,
Sogo Ceramics, City Tiles, Restlie Ceramics etc.
The ceramic tile industry is characterized by intense competition, low entry barriers and
high working capital requirements. The major demand drivers for the industry domestically
are the high growth in the housing and construction sectors, easy availability of credit and
increase in net disposable incomes. Vitrified tiles command a premium over other types of
tiles mainly due to its superior physical properties. Within the vitrified tiles segment,
realisations are driven by ability of a company to constantly introduce newer designs and
concepts relative to its competitors and in line with the changing trends and preferences of
customers.
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CERAMIC TILE INDUSTRY STATISTICS:
1. World production: 6900 Million sq.mt.
2. India's Share: 270 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
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Manufacturing of Tiles
Raw Materials-
The raw materials used to form tile consist of clay minerals mined from the earth's crust,
natural minerals such as feldspar that are used to lower the firing temperature, and
chemical additives required for the shaping process. The minerals are often refined or
beneficiated near the mine before shipment to the ceramic plant.
The raw materials must be pulverized and classified according to particle size. Primary
crushers are used to reduce large lumps of material. Either a jaw crusher or gyratory
crusher is used, which operate using a horizontal squeezing motion between steel plates or
rotating motion between steel cones, respectively.
Secondary crushing reduces smaller lumps to particles. Hammer or muller mills are often
used. A muller mill uses steel wheels in a shallow rotating pan, while a hammer mill uses
rapidly moving steel hammers to crush the material. Roller or cone type crushers can also
be used.
A third particle size reduction step may be necessary. Tumbling types of mills are used in
combination with grinding media. One of the most common types of such mills is the ball
mill, which consists of large rotating cylinders partially filled with spherical grinding media.
Screens are used to separate out particles in a specific size range. They operate in a
sloped position and are vibrated mechanically or electromechanically to improve material
flow. Screens are classified according to mesh number, which is the number of openings
per lineal inch of screen surface. The higher the mesh number, the smaller the opening
size.
A glaze is a glass material designed to melt onto the surface of the tile during firing, and
which then adheres to the tile surface during cooling. Glazes are used to provide moisture
resistance and decoration, as they can be colored or can produce special textures.
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Once the raw materials are processed, a number of steps take place to obtain the finished
product. These steps include batching, mixing and grinding, spray-drying, forming, drying,
glazing, and firing. Many of these steps are now accomplished using automated equipment
Once the raw materials are processed, a number of steps take place to obtain the finished
product. These steps include batching, mixing and grinding, spray-drying, forming, drying,
glazing, and firing. Many of these steps are now accomplished using automated equipment.
Batching
For many ceramic products, including tile, the body composition is determined by the
amount and type of raw materials. The raw materials also determine the colour of the tile
body, which can be red or white in colour, depending on the amount of iron-containing raw
materials used. Therefore, it is important to mix the right amounts together to achieve the
desired properties. Batch calculations are thus required, which must take into consideration
both physical properties and chemical compositions of the raw materials. Once the
appropriate weight of each raw material is determined, the raw materials must be mixed
together.
Mixing and grinding
Once the ingredients are weighed, they are added together into a shell mixer, ribbon mixer,
or intensive mixer. A shell mixer consists of two cylinders joined into a V, which rotates to
tumble and mix the material. A ribbon mixer uses helical vanes, and an intensive mixer
uses rapidly revolving plows. This step further grinds the ingredients, resulting in a finer
particle size that improves the subsequent forming process.
Sometimes it is necessary to add water to improve the mixing of a multiple-ingredient batch
as well as to achieve fine grinding. This process is called wet milling and is often performed
using a ball mill. The resulting water-filled mixture is called a slurry or slip. The water is then
removed from the slurry by filter pressing (which removes 40-50 percent of the moisture),
followed by dry milling.
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Spray drying
If wet milling is first used, the excess water is usually removed via spray drying. This
involves pumping the slurry to an atomizer consisting of a rapidly rotating disk or nozzle.
Droplets of the slip are dried as they are heated by a rising hot air column, forming small,
free flowing granules that result in a powder suitable for forming.
Tile bodies can also be prepared by dry grinding followed by granulation. Granulation uses
a machine in which the mixture of previously dry-ground material is mixed with water in
order to form the particles into granules, which again form a powder ready for forming.
FormingMost tile is formed by dry pressing. In this method, the free flowing powdercontaining
organic binder or a low percentage of moistureflows from a hopper into the forming die.
The material is compressed in a steel cavity by steel plungers and is then ejected by the
bottom plunger. Automated presses are used with operating pressures as high as 2,500
tons.
Several other methods are also used where the tile body is in a wetter, more moldableform. Extrusion plus punching is used to produce irregularly shaped tile and thinner tile
faster and more economically. This involves compacting a plastic mass in a high-pressure
cylinder and forcing the material to flow out of the cylinder into short slugs. These slugs are
then punched into one or more tiles using hydraulic or pneumatic punching presses.
Ram pressing is often used for heavily profiled tiles. With this method, extruded slugs of the
tile body are pressed between two halves of a hard or porous mold mounted in a hydraulic
press. The formed part is removed by first applying vacuum to the top half of the mold to
free the part from the bottom half, followed by forcing air through the top half to free the top
part. Excess material must be removed from the part and additional finishing may be
needed.
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Another process, called pressure glazing, has recently been developed. This process
combines glazing and shaping simultaneously by pressing the glaze (in spray-dried powder
form) directly in the die filled with the tile body powder. Advantages include the elimination
of glazing lines, as well as the glazing waste material (called sludge) that is produced with
the conventional method.
Drying
Ceramic tile usually must be dried (at high relative humidity) after forming, especially if a
wet method is used. Drying, which can take several days, removes the water at a slow
enough rate to prevent shrinkage cracks. Continuous or tunnel driers are used that are
heated using gas or oil, infrared lamps, or microwave energy. Infrared drying is better suited
for thin tile, whereas microwave drying works better for thicker tile. Another method,
impulse drying, uses pulses of hot air flowing in the transverse direction instead of
continuously in the material flow direction.
Glazing
To prepare the glaze, similar methods are used as for the tile body. After a batch
formulation is calculated, the raw materials are weighed, mixed and dry or wet milled. The
milled glazes are then applied using one of the many methods available. In centrifugal
glazing or discing, the glaze is fed through a rotating disc that flings or throws the glaze
onto the tile. In the bell/waterfall method, a stream of glaze falls onto the tile as it passes on
a conveyor underneath. Sometimes, the glaze is simply sprayed on. For multiple glaze
applications, screen printing on, under, or between tile that have been wet glazed is used.
In this process, glaze is forced through a screen by a rubber squeegee or other device.
Dry glazing is also being used. This involves the application of powders, crushed frits(glass
materials), and granulated glazes onto a wet-glazed tile surface. After firing, the glaze
particles melt into each other to produce a surface like granite.
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Firing
After glazing, the tile must be heated intensely to strengthen it and give it the desired
porosity. Two types of ovens, or kilns, are used for firing tile. Wall tile, or tile that is
Prepared by dry grinding instead of wet milling (see #2 and #3 above), usually requires a
two-step process. In this process, the tile goes through a low-temperature firing called
bisque firing before glazing. This step removes the volatiles from the material and most or
all of the shrinkage. The body and glaze are then fired together in a process called glost
firing. Both firing processes take place in a tunnel or continuous kiln, which consists of a
chamber through which the ware is slowly moved on a conveyor on refractory battsshelves built of materials that are resistant to high temperaturesor in containers called
saggers. Firing in a tunnel kiln can take two to three days, with firing temperatures around
2,372 degrees Fahrenheit (1,300 degrees Celsius).
For tile that only requires a single firingusually tile that is prepared by wet millingroller
kilns are generally used. These kilns move the wares on a roller conveyor and do not
require kiln furnitures such as batts or saggers. Firing times in roller kilns can be as low as
60 minutes, with firing temperatures around 2,102 degrees Fahrenheit (1,150 degrees
Celsius) or more.
After firing and testing, the tile is ready to be packaged and shipped.
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Introduction
Of
Company
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Kajaria Ceramics Ltd
Kajaria Ceramics Limited is the largest manufacturer and exporter of ceramic wall and floor
tiles in India. Kajaria is the first tile company to win the Super brand Status.Kajaria`s distribution network comprises of about 600 dealers. Kajaria Ceramics is the
largest manufacturer of ceramics tiles in India. It has an annual capacity of 21 mn. Sq. mtr.
Distributed across two plant Sikandrabad at Uttar Pradesh (capacity 6.90 mn. Sq. mtrs)
and Gailpur at Rajasthan (capacity 14.10 mn. Sq. mtrs.).
The Company is in advance stage of commissioning 2.5 mn sq mtr vitrified tile facility at
Sikandrabad (Uttar Pradesh), adding a margin-accretive product vertical to the business
model. After this, the aggregate capacity of the Company would become 23.50 mn sq mtr of
tile production per annum.
The company has received the ISO 9001 (for quality management), ISO 14001
(environment management), OHSAS 18001 (for safety and health management) and SA-
8000 (for commitment to society) certifications across its plant. ), These plants also fulfil
international norms. It is a continuous process, which allows the company to express
through tiles what words can't say and provide our consumers with new and innovative
options. 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.
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BOARD OF DIRECTORS
Mr. Ashok Kajaria (Chairman & Managing Director)
Mr. D.D.Rishi (Joint Managing Director)
Mr. Chetan Kajaria (Whole Time Director)
Mr. Rishi Kajaria (Whole Time Director)
Mr. R.P.Goyal (Independent Director)
Mr. R.K.Bhargava (Independent Director)
Mr. D.P.Bagchi (Independent Director)
Mr. R.R.Bagri (Independent Director)Mr. R.C. Rawat VP (F&A) & Company Secretary
COMMITTEE OF THE BOARD AUDIT COMMITTE
Mr. R.P.Goyal -Chairman
Mr. R.K.Bhargava -Member
Mr. R.R.Bagri -Member
Share Transfer and Investors Grievances Committee Mr. R.R.Bagri -Chairman
Mr. Ashok Kajaria -Member
Mr. D.D.Rishi -Member
Project Management Committee Mr. Ashok Kajaria -Chairman
Mr. D.D. Rishi -Member
Mr. Chetan KajariaMember
Mr. Rishi KajariaMember
REGISTERED OFFICE A-27 & 28, Sikandrabad Industrial Area, Sikandrabad, Dist.
Bulandshahr, (U.P.)
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Kajaria Tiles Growth History
1985 - The Company was incorporated on 20th December at Kanpur. It
manufactures glazed and unglazed wall & floor tiles. The company obtained
the certificate of commencement of business on 20th January 1986. It was
promoted by Shri Ashok Kumar Kajaria, his associate and Kajaria Exports
Ltd.
The Company entered into a technical collaboration agreement with
Todagres S.A., Spain for the manufacture of ceramic glazed wall & floor tiles.
The agreements provides for supply of technical know-how andmanufacturing assistance necessary design, drawings, and specifications
and also trains the companys personnel and provide technical assistance for
the setting up of the plant.
The company undertook a project to set up a plant for the manufacture of
12,000 tpa of ceramic glazed wall/floor tiles in various shades. The plant is
located on a plot of 17.5 acres acquired from UPSIDC at Sikandrabad
Industrial Area in Bulandshahr district of U.P. main plant and machinery was
supplied by Sacmi Imola and Omis Due SPA of Italy. Three D.G. sets of a
total capacity of 835 KVA were installed to meet contingent power
requirement.
The company has an obligation to export 25% of the production for a period
of 5 years from the date of commercial production. It was hopeful of meeting
the export requirement with the help of the promoter company, Kajaria
Exports, Ltd. The company received the necessary registration for the
expansion of the installed capacity from 12,000 tpa to 26,000 tpa.
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1987 -700 shares subscribed for by the signatories to MOA 53,32,700 shares then
issued at par of which the following were reserved for allotment-
(1) 23, 32,700 shares to promoters , Indian resident directors
(2) 8, 00,000 shares on repatriation basis to NRIs and NRI companies owned
predominantly by NRIs.
Out of the remaining 22, 00,000 shares, the following were preferential
allotment.
(1) 2,66,600 shares to employees, Indian working Directors, workers of
company and employees of Kajaria Exports Ltd.(only 11,000 shares
taken up) ,
(2) 5,00,000 shares to NRIs on repatriation basis only 39,600
The balance 14, 33,400 shares along with unsubscribed 17,15,600
shares of preferential quotas, were offered to the public in September
1988. Additional 8, 00,000 shares allotted to retain over subscription.
1989 -The company maintained an average capacity utilization of 120%. The
Company started exporting tiles to the Gulf countries, Europe and
Bangladesh. New ranges of tiles were introduced in the market. Various new
designs and prints were introduced in the market. The expansion programme
was on the verge of completion and production at the expanded capacity was
expected to commence in June, 1990.
During August/September, the company offered 3, 22,000 -14% secured full
convertible debentures of Rs. 100 each were offered on rights basis to the
existing shareholders in the prop. 5 debentures: 100 equity shares (all were
taken up). Simultaneously, 15,330 debentures of Rs. 100 each were offered
to the employees and working directors of the company on an equitable basis
(only 785 debentures were taken up).
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Additional 31,455 debentures along with the unsubscribed portion of 14,545
debentures from employees quota were allotted at the discretion of the
Directors.
As per the terms of issue , part A of Rs. 40 of each debenture was converted
at par into four equity shares of Rs. 10 each at the end of 6 months from the
date of allotment of the debentures. Accordingly 14, 13,820 shares were
issued. The remaining part of Rs. 60 was converted into 3.53 number of
equity shares of Rs. 10 each at a premium of Rs. 7 per share on 15th dec.
1991.
1990 - A further expansion of installed capacity from 26,000 MT to 40,000
MT was being implemented 14, 13,820 shares allotted at par in conversion of
debentures.
1991 -The company was awarded "CAPEXIL" special exports award for the year
1992 for being the largest exporter of ceramic tiles from the country.
The company proposed a further expansion of the installed capacity to 60,000
MT 12, 47,696 shares allotted in conversion of debentures.
1993 -The company proposed a further expansion of the installed capacity to
1, 30,000 MT with the support of technical collaborators M/s. Todagres SA of
Spain.
During July , the company issued 21,98,729- zero interest unsecured fully
convertible debentures of Rs. 70 each at par on right basis in the proportion of
1 debenture : 4 equity shares held.
Another 5,49,671 zero interest unsecured fully convertible debentures of Rs.
70 at par were issued on preferential basis to promoters , directors and their
friends including group companies. Each debenture of Rs. 70 will be
converted into 2 equity shares of Rs. 10 each at a premium of Rs. 25 per
shares on the expiry of 9 months from the date of allotment or on 1st April
1994, whichever is earlier.
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1994 -During the year the company successfully launched wall tiles
Manufactured with single firing technology which was well accepted in the
market.
The company proposed to issue 2,00,000 14% non convertible debentures of
Rs. 100 each at par to financial institutions/ mutual fund on private placement
basis. 54, 96, 800 no. of equity shares allotted on conversion of zero interest
unsecured fully convertible debentures.
1995 - 4, 25, 000 no. of equity shares allotted to IFCI in terms of exercise of
conversion option under loan agreement.
2003 -The Members approved the of Mr. Rishi Kajaria as Director on the
Board and ratification of re-appointment of Mr D.D.Rishi in the capacity of Jt.
Managing Director of the Company for a period of 5 years and voluntary
delisting of equity shares from U P Stock Exchange Association Ltd.,Delhi
Stock Exchange Association Ltd. and Calcutta Stock Exchange Association
Ltd.
Kajaria Ceramics Ltd has informed that the securities of the company have
been delisted from the Delhi Stock Exchange Association Ltd w.e.f December
10, 2003.
2004 -Kajaria Ceramics Ltd has informed that consequent upon acquisition
of R&TA Division of M/s Computech International Limited by M/s MCS Limited,
the Registrar & Transfer Agent of the Company stands changed from M/s
Computech International Ltd to M/s MCS Limited. The change of the same has
been approved by the Board of Directors in their meeting held on December
26, 2003Commenced the commercial production of its additional capacity of 2
million sq mtr per annum on February 27, 2004, with an investment of Rs.340
million at Gailpur Plant. With this expansion, the aggregate capacity of the
company has become 14 million sq.mtr per annum.
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Milestones of Kajaria
1988 - Production of ceramic tiles begins with single firing technology.
1990 - Expansion of capacity from 12000 MT to 26000 MT
1991 - Further increase in capacity to 40000 MT
1992 - Kajaria win the CAPEXIL award for highest exports
1994 - Monoporosa wall tiles introduced for the first time
1995 - Capacity expanded to 80000 MT
1996 - Rs. 1 bn. Turnover crossed
1997 - World economic forums honours Kajaria as one of the top performing
global growth company from India.
(a) Kajaria captures 15% market share and reaches the no. 2 position in the
ceramic industry.
(b) Win the CAPEXIL award for highest exports.
1998 - Capacity expanded to 150000 MT equivalent to 33000 sq. Per day ,
at par with the international players.
1999 - Rs. 2 Bn. Turnover crossed
2000 - National export award presented by prime minister for outstanding
export performance in the ceramic glazed tile segment.
2003 - Rs. 2390 mn. Turnover achieved
2004 - Rs. 2698 mn. Turnover achieved reflecting growth of 13%.
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Production
Kajaria Ceramics is the largest manufacturer of ceramics tiles in India. It has an annual
capacity of 21 mn. Sq. mtr. Distributed across two plants Sikandrabad at Uttar Pradesh
(capacity 6.90 mn. Sq. mtrs) and Gailpur at Rajasthan (capacity 14.10 mn. Sq. mtrs.) .
The Company is in advance stage of commissioning 2.5 mn sq mtr vitrified tile facility at
Sikandrabad (Uttar Pradesh), adding a margin-accretive product vertical to the business
model. After this, the
Aggregate capacity of the Company would become 23.50 mn sq mtr of tile production per
annum.
The company has received the ISO 9001 (for quality management), ISO 14001
(environment management), OHSAS 18001 (for safety and health management) and SA-
8000 (for commitment to society) certifications across its plant. ), These plants also fulfil
international norms.
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Over the years, Kajaria has become synonymous with innovation. New techniques are
diligently applied to create tiles that stand apart and speak the language of your soul.
Hence every year, it comes up
With exciting new concepts that voice new emotions and keep up with current trends. The
manufacturing units are equipped with cutting edge technology, intense
Automation, robotic car application and zero chance of human error, helps it to maintain
high quality and top position. Also theses manufacturing plants are well equipped to cope
with ever increasing demands of customers, conscious of quality and design.
It is a continuous process, which allows us to express through tiles what words can't say
and provide our consumers with new and innovative options. The new range of tiles
released this year adds to the already impressive Kajaria Collection.
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ACCREDITATION
Capexil Award - Certificate in Recoginition of Export achievement in respect of Glazed
Ceramic Tiles for the year 2008-2009.
Achievements for Kajaria are not just about being number one brand; the company is
conscious of its social responsibilities and committed to improving the quality of life.
In 2001 Kajaria became one of a handful of companies in India and the only one in the tiles
industry to adopt a formal environment policy. To fulfil this obligation Kajaria undertook
extensive product reformulation, process modification, equipment
Redesign and re-cycling and re-use of materials. For this it was bestowed the ISO 14001
certification.
Kajaria Gailpur is the only plant in India to have the following four ISO Certifications
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The company was awarded the prestigious OHSAS 18001 for fulfilling international
standards in occupational health and safest management system specifications. Its no
surprise that Kajaria Ceramics is also amongst a very few ceramic tile companies in the
world to get this certification. It was also the first company in the ceramic tile industry to
receive the ISO 9002 certification confirming its adherence to global standards of quality.
The world Economic Forum has also selected the company as one of the top performing
Global Growth Companies from India. The latest feather in the cap is that we have been
selected as the Business Superbrand. Each of these recognitions has spurred the
company to outperform itself.
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AWARDS
Kajaria Ceramics Limited has been awarded the "Super Brand" Title. Kajaria is the
only ceramics tile company who have won the status of consumers "Super Brand".
Mr. Ashok Kajaria (Chairman & Managing Director) receiving the award presented
by Honourable Minster for Civil Aviation, Mr. Praful Patel.
Kajaria has been only Tiles company in India to achieve the rare distinction of being
a superbrand (considered Oscars of branding in India) ,for the fourth time in a row ,
a status shared by only sixty other corporate houses in India.
The company has had a unique distinction of having received the President's Award
for achieving the highest exports in the industry.
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Kajaria Ceramics is the largest exporter of ceramic tiles in India and consistently
winning the Export Awards.
Mr. Chetan Kajaria with the National Export Award Presented by the Prime Minister
of India.
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Dealer/ Sub Dealer showroom
Kajaria Ceramics has a strong distribution network of about 600 dealers and over 6000 sub-
dealers spread all over India.
These Dealer showrooms showcase innovative products, panels and display various colour
combinations for customers to choose from. The display division of the marketing
department has done a remarkable job by upgrading 600 dealer and 6000 sub-dealer
showrooms across the country.
Competitors of Kajaria Tiles
Orient Ceramics Industries Ltd.
OCIL was formed on 18th May 1977 as a public limited company and has been at the
forefront of innovation in home dcor ever since. In 1993, Mr M K Daga, the foremost
ceramic tile technologist in India took over the management of OCIL. Over the years, the
company has grown from strength to strength and has expanded in terms size, scale,
network, product portfolio and turnover.
An innovative and forward-looking brand, the company has many firsts to its name. OCIL is
the pioneer in the manufacturing of Ultra Vitrified Tiles in India. The company also has the
distinction of being the first company in the country to have an in-house European
Designer. Quality and durability, combined with the aesthetics of design and colour make
Orient Ceramics not just a tiles manufacturer but also a company that offers extraordinary
wall and floor solutions. OCIL manufactures one of the widest range of Non-Vitrified,
Vitrified, Ultra Vitrified and 3rd Fired Decorative Tiles for walls, floors & facades. The
company also imports and markets Vitrified Porcelain Tiles, Borders, Motifs and other value
added accessories from various countries to complement its wide range of tiles.
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From an initial installed capacity of 4,000 TPA in 1977, the companys production capacity
now stands at 220000 TPA or 38,000 square metres per day. Orient Ceramics has state-of-
the-art, environment-friendly manufacturing facilities. The technologically sound
manufacturing units conform to the ISO 13753-56:1993 of BIS and ISO 10545-1/17, ISO
13006 specifications. The company has been accredited with ISO 9001:2000, ISO 14001
and ISO 18001 certifications for quality control management systems.
Orient Tiles clientele, comprising individuals, house builders, architects and institutions, are
not only found in India, but are also spread across Europe, South East Asia, Middle East
and the SAARC countries. The company has plans to expand
the export base and to also leverage its strong network of over 1200 retailers and more
than 4000 secondary retailers spread all over the country.
Orient Ceramics clientele in the real estate development space includes leading
developers like DLF, Unitech, Parsvnath, Shobha Developers, Raheja, Larsen & Tourbo,
Rites, CPWD, MES, AAI and other large and small builders. Orient products have been
extensively used in the construction of the prestigious Rashtrapati Bhawan in addition to
beautifying structures like India Habitat Centre (New Delhi), Delhi High Court, Kolkata
Airport, DMRC Stations and ITC-Sonar Bangla (Kolkata) among others. The company owns
two exclusive showrooms in Delhi and Sikandrabad and has more than 1000 franchised
outlets across the country. Orient remains committed to bring the best in tile designs and
quality to Indian consumers.
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Asian Tiles
This company is the result of the dreams of three entrepreneurs, materialized with the
grassroots of passion, experience & dynamism With starting a quest for excellence a
decade ago, today Asian tiles have blazed a trail in the tile industry. With humble beginningin the field of floor tiles, today it has expanded till the horizon, covering almost each of the
aspects of the industry. Supported by vast man power along with mind power, Asian Tiles
possesses the strength of over 3000 business associates spread across the nation. Asian
is all set to reach the goal of supplying world class product, through a network of 18 depots
with display centres & ultra modern plant in the ceramic zone of Sabarkantha, Gujarat,
spread over an area of 2, 30,000 Sq. Mtr. and production capacity of two plants is 32300
Sq. Mtr. Per day of tile. Asian has become India's leading wall tile manufacturer in large
format size, with the biggest size of 300 X 900 mm, where we provide wall tiles of white
body similar to European tiles, with the promise of extremely accurate size control, to add
brightness and depth to the glaze.
It is having all tiling solution like floor and wall segment. In floor segment it has vitrified,
ceramic, aqua art products with the sizes & with versatile design series to match the end
consumer choice and to attract the attention of builders and architect.
In wall segment we are the biggest tile manufacture in India and we produce 15,000 sq
meters per day with the size and design. To spread at all India it has qualified marketing
team who can cater all nook and corner in India. In its product portfolio it also has Marble
stone range also and it is available in premium and popular segment to satisfy the
consumers needs. In India Marble segment is growing and we would also like to cater that
segment with the understanding of market trend.
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H & R JOHNSONS:
Established in 1958, H & R Johnson (India) is the market leader in the field of ceramic tiles
in India. The company is promoted by Mr. Nenshi Shah, Mr. Talakshi Nandu , Mr. KumarShah , Mr Paresh Shah. HRJ has consistently maintained its leadership position in the field
of tiles over the past five decades. Today, HRJ enjoys the reputation of being the only
company in India to offer end-to-end solutions of Tiles, Sanitaryware, Bath Fittings and
Kitchens. Under its flagship brand, Johnson, HRJ offers glazed wall and floor tiles, bath
products, kitchens, laminate and engineered wooden flooring. Marbonite brand offers a
complete range of vitrified tiles, and Endura offers industrial tiles and tiles for special
applications like bathrooms / high traffic areas / swimming pools etc. HRJ has recently
launched top-end, premium range of products under Johnson Ceramics International brand.
HRJ has a strong service network of technicians and engineers spread across the country.
This network complements the range of bath products by offering various services like
installation, trouble-shooting, repairs, and AMC. HRJ's sales volume for the year 2008-09
was 37 million sqm of tiles and plans to achieve 90 million sqm by 2014-15. Keeping world
class quality in mind, its manufacturing facilities are ISO 9001:2000 certified.
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NITCO TILES
Nitco Tiles Private Limited was incorporated on July 25, 1966 at Delhi to take over the
business of manufacturing and marketing of tiles from The Northern India Tiles Corporation(Bombay). Subsequently, the company was converted into a public limited company with
effect from January 25, 1996. Pursuant to this, the name of the Company changed to Nitco
Tiles Limited. Pursuant to the take over of the business of the partnership firm, the
Company started to manufacture mosaic and terrazzo tiles at Thane, Maharashtra. In 1984,
they started the operation at Kanjurmarg, Mumbai for processing and distribution of
imported marble in India. Growing further, in 1995, they began the implementation of a
green field project for manufacture of ceramic floor tiles at Alibaug, Maharashtra and started
the commercial production of ceramic tiles in 1997. In 2002, they started one more marble
processing unit at Slivassa. In 2004, it scaled up operations of outsourcing vitrified tiles
from China.. Currently the product portfolio comprises of ceramic tiles, vitrified/wall tiles,
cement terrazzo tiles, pavers and marbles etc.
The company is renowned and revered for its revolutionary concepts, pioneering
endeavours and premium products in the construction industry for over five decades.
Today, with its rich repertoire in offering unique Floor Tiles, Mosaico, Wall Tiles and Marble,
Nitco has gone to become the one of the preferred name and the ideal choice of millions of
house-holds and the real estate fraternity. An avant-garde at the core, the company has
continued to pioneer ground breaking innovations in all its offerings.
Ceramic Tiles, Vitrified Tiles, Pavers, Imported Marble, Engineered Marble,
Intarsiasplendours of inlay marble and Mosaico- artistic creations in mosaic rendered in
stone, ceramic and marble, for instance. Winning 13 Capexil awards for innovation and
design is the perfect testament to all of its achievements. Nitco's widespread network
includes 18 depots, 750 direct dealers and over 5000 sub dealers spread across the
country. Apart from a closely interlinked network, the Company also has 4 factories and
various offices in India, with its headquarters located in Mumbai.
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SOMANY TILES
Whether ceramic glazed tiles, vitrified tiles, sanitary ware or porcelain floor tiles, Somany
has been one company known for style and quality. In 1969 Shri H L Somany incorporateda 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
success for this company.
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 Aqua ware brand sanitary ware. A large network of Somany display
centres 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 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 endeavour to bring the very best to
customers, they source their raw material from as far as Italy, Spain, and China besides
Rajasthan, Uttar Pradesh, Madhya Pradesh and other major centres in the country.
Somany has a production capacity of 15.7 million sq met per annum from its Haryana and
Gujarat units. It has always focused on acquiring and leveraging the latest
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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 Rot colour 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. Another exceptional technological advantage has been achieved with
Somany's 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.
Bell Tiles
The company started in 1985 with the aim of manufacturing world-class ceramic glazed
tiles. 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 lakes square meters per annum of wall and floor
tiles. Bangalore plant has an installed capacity of 82.13 lakes square meters per annum of
floor tiles. Wide range of breathtaking products to suit various consumer preferences Like
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. ISO
9001:2000 and ISO 14001 manufacturing facilities strategically located near prime markets
in India.Manufactured according to COMITEE EUROPEAN DE NORMALISATION (CEN).
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It has 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. It has been feted with many awards for
performance including Certificate of Merit conferred by the President of India for meritorious
performance in Exports. It also keeps in touch with end-users, influencers and channel
partners with regularly organised events, exhibitions and meets.
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INTRODUCTION OF
THE STUDY
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INTRODUCTION TO THE PROJECT TOPIC
Marketing as it is said is the one of the corporate activities. Half the battle is won if the
marketing strategy is right. Marketing is the field, which deals with getting right things , by
right people. It is first and for most in launching and distributing the product and services.
The market research is meant to get the knowledge o the latest trend prevailing in the
market and to know about the mood of the customer.
Marketing environment is changing at an accelerating rate. Change levels vary from
Buyer need to buyer want,
- National to regional to local,
- Price to non price competition
Look for real time marketing information to give company a competitive advantage over itscompetitors.
This survey deals with marketing a database of the dealers, who are closest to the real time
happenings in the market and the end customers.
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Research Methodology
TITLE OF THE STUDY- Potential analysis of market share and satisfaction of dealers
Universe the universe was Jaipur city with the finite sample size of 100
Sampling technique the sampling technique adapted was random Sampling. For
the same purpose , visits to random dealers and sub dealers was made , in different areas
of Jaipur , keeping in mind the objective of minimizing Bias and maximizing the reliability ofdata. Also, by adopting this procedure it was ensured that the sample drawn would have
the same composition and characteristics of the population.
Research Design the research was descriptive in nature as it dealt with describing
the market and potential of the dealers and also the survey of the consumer to know about
perception. The research was designed to discover the potential dealer / sub dealer.
Data collection A questionnaire was developed to conduct the research. The
researcher put to the respondents the questions form and recorded the replies.
The questionnaires were the best available alternative for data collection. The other option
was that of interview and questionnaire. The schedule had many features which added
value to its use as a tool for accumulation of required information.
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Limitations of the study
Due to time constraint, the area under study was limited to only a selected segment
of the market. The population selected was dealers, sub dealers and retailers and
customer.
Hence the findings of the study may pertain only to the area covered by the
researcher.
The researcher faced major problems while conducting survey taking in to
consideration, various constraints, which deal with the middle class.
The result of the study depends on the information furnished by the respondents and
hence the information provided by them may subject to sampling bias.
Preference and response of customer could change over a period of time.
Some of the respondents did not respond properly and accurately due to time
constraints, which was main hindrance.
Some of the sub dealers were completely new, so they felt amazed and suspicious
of the survey.
Also some dealers, dealing in other tiles refused to entertain any such survey
conducted by Kajaria.
Also the personal bias of the dealers towards and against Kajaria brand might alter the
correct response to the survey questions.
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FACTS AND FINDINGS
FACTS
There are many facts I have in Kajaria ceramics limited few are as follows :-
1. The training and development procedures in Kajaria ceramics limited are good.
2. The employees in Kajaria ceramics limited are encouraged by their superiors so that they
can work efficiently and learn more about their job.
3. The duration of the training procedure in Kajaria ceramics for the employees is sufficient
for their effective learning.
4. The trainers in the Kajaria ceramics create a friendly atmosphere so that the employees
can ask their queries without hesitation.
5. The atmosphere provided in the training area is very clean so that the employees do not
feel annoyed.
6. The employees were not so much happy with the training as they feel that some
alternative knowledge should be provided to them.
7. The training schedule of the employees was abrupt and hectic so they felt very tired
mentally and physically.
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8. Some of the employees felt that the training provided to them was not so good for their
learning.
1. The environment and working conditions for employees are good.
2. A food mess runs whole day for workers.
3. Tea provision is also provided for employees.
Safety securities are provided while working and training.
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Significance of the study
Significance for the industry
This is a limited study which takes into consideration the responses of 100 dealers. This
data can be explored to find out the trends across the industry. The significance for the
industry lies in studying these trends that emerge from the study. It is a rapidly changing
and evolving sector. A study like this can attempt to guide the future of the industry based
on current trends.
Also the views of the dealers would help in determining the future strategies of the
companies and add to the betterment of end user requirement.
Significance for the researcher
To have a firsthand research experience about tiles industry. Various primary and
secondary data sources would help in shaping a good notion about the industry trends and
its future prospects. Also recommending measures to improve the present scenario of a
company would boost up the confidence of the researcher.
Title of the study Potential analysis of market share and level of satisfaction of
dealers and sub dealers of Kajaria.Duration 45 days.
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Specifying Research objective
The present research was conducted to achieve the following objectives:
To know the market potential for Kajaria wall and floor tiles
To collect the database sub dealers, retailers who play an imperative role in
distribution of Kajaria Products
To know the preference of Architects and builders for wall and floor ceramic tiles.
To gain information about various construction sites (where there is requirement oftiles) undertaken by these architects and builders.
To know the dealers perception towards Kajaria products
To study the various factors to which customer gives importance while purchasing.
To know the major competitors and their schemes which are offered as promotional
tool.
To do the SWOT analysis of the company.
To give necessary suggestions to the company.
Scope of study
The project work entitled potential study of market share and level of satisfaction of dealers
an sub dealers of Kajaria was conducted in the city of Jaipur. The survey has been
conducted for the purpose of analysing the perception pattern of the respondent. A multiplechoice questionnaire was designed for the same purpose.
This questionnaire includes various aspect information like customer preference, dealer
perception towards Kajarias product, various factors affecting the purchasing of the
product, major competitors and their different kinds of scheme and benefits. Thus to collect
information to improve market share and to make suitable marketing strategy with the help
of all this information.
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Data Analysis
and
Interpretation
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Data Analysis and Interpretation1.According to you what does the consumer prefers before buying tiles?
Interpretation
Brand and cost are most important criteria for selection of tiles, by customers. The company
should focus on both parameters equally, and should ensure the cost of the products ,
should not seem rocket high. Also during the survey, most dealers said that customers
believe that quality comes from brand image which makes brand building all the more
crucial. The second important factor is variety, so if the company can deliver variety in
different price range category, consumers will not need to go anywhere else, for moreoptions.
30%
30%
12%
25%
3%
Consumer preference while buying tiles
Cost Brand Quality Variety Delivery
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2..While buying which brand consumer prefers the most?
Interpretation
Kajaria clearly emerges out to be a market leader, with closest competition with Somany
tiles. Many other brands like orient, Nitco, Asian are also noticeable players in the market.
Also there is a large market of Gujarat tiles, which is known for being less expensive and
dealers find their margin in these tiles high. Some tile dealers also deal in imported tiles and
serve high end customers.
42%
11%5%
5%
37%
Preferred brand by consumer
Kajaria Somany Bell Nitco Others
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3.For which portion of the house consumer prefers tiles?
Interpretation
The sale of tiles for bathrooms, surpass other areas by a large margin. It can be concluded that most of the
households prefer tiles at least in their bathrooms. Other than bathrooms, kitchen and rooms also find large
application of tiles. So apart from providing a wide variety for bathrooms, the company should also
concentrate on other areas and should try to promote tiles for these areas by low initial cost or other
marketing tools. This way the company can create new innovative application of tiles and expand the tilemarket.
16%
14%
58%
7%
3%
2%
Most preferred area for Tiles
Room Kitchen Bathroom Front elevation Roof Parking
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4. Which scheme stands most attractive ?
Interpretation
Clearly discounts are the most preferred scheme for dealers, which earn them more profit.
Free samples are also preferred by dealers, which they also display in their showrooms to
show more variety to the customers.
63%
22%
3% 9%3%
Preffered schemes by Tile dealers
Discounts Free samples Extra Foreign travel Others
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5. The margin of Kajaria tiles is?
Interpretation
Most of the dealers and associate dealers find the margin in Kajaria and overall tile industry
to be low or limited. The margin further reduces for dealers who have to purchase fromother dealers in order to sell Kajaria tiles on customer demand.
41%
35%
24%
Margin of Kajaria Tiles
Low Limited Satisfactory
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6. Total no. of boxes sold per month (approx.)?
Interpretation
One third of the tile dealers sell more than 2500 boxes of tiles , and most of them are not Kajaria dealers. So
the market shows a lot of potential, where the company should try to make these dealers sell Kajaria tiles.
11%
11%
22%
19%
4%
33%
Total no. of boxes sold by dealers / month
2500
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7. Total no. of boxes of Kajaria sold per month (approx.)?
Interpretation
A large no. of dealers and associate dealers of Kajaria sell above 2500 boxes of tiles, which is very beneficial
for the company. But there are many small players in dealership, on which the company needs to focus in
order to capture a bigger market share.
11%
22%
11%
6%6%
44%
No. of Kajaria tiles Boxes sold / month
2500
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8. Which size (in mm.) does consumer prefers the most?
Interpretation
The most preferred tile size in the market is 300*450 mm , so the company should take
care that it has wide variety in this size. Not far behind is the size 300*200, 300*600, so the
company should focus on these standard sizes preferred by the customers.
3%
30%
6%
36%
25%
Most preferred Tile size
200*200 300*200 250*400 300*450 300*600
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9. Promotional schemes adopted by the company are beneficial for dealers and
associate dealers?
Interpretation
According to the survey, a large number of dealers seems to be satisfied with the
promotional schemes of the company. The company should make efforts to maintain this
high number as the dealer forms an important link in the selling of tiles , and should be kept
satisfied as far as possible.
89%
11%
Are promotional schemes beneficial for
dealers
Yes No
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SWOT
Analysis
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SWOT Analysis of Kajaria Tiles
STRENGTH
Consistent growth of 12-15 percent inspite of slowdown in economy. The Indian
ceramic export market is rising at the rate of 15 percent per annum.
The top management enjoys a tile industry experience of more than two decades.
Kajaria is Indias largest ceramic floor and wall tile manufacturer; its expanded
Capacity and improved capacity utilisation provides attractive economies of
scale.
The manufacturing process is fully automated and mechanised.
Kajaria is present across the entire value chain, from glazed ceramic tiles to
Polished porcelain tiles to glazed porcelain tiles.
Kajarias R&D team creates around 8-10 designs every month and was credited with
a number of pioneering initiatives
Its showroom display wide variety of concepts.
Kajaria is a well known and established brand for years known for its quality and
variety.
Kajarias multi-layered distribution channel (owned showrooms and dealer/sub
dealer network) in India and 20 nation footprint enhance reach.
Kajarias institutional clients in India, comprising DLF, Unitech, Mantri Group and Raheja Developers,
among others, drive product off take.
WEAKNESS
Comparatively higher price.
Colour difference in same box.
Broken tiles in some boxes.
Company itself a competitor of its own dealers, esp. In bigger projects.
Not much importance given on brand building and network thus creating hindrance
for export growth.
Lack of print media ad about availability of dealer.
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OPPORTUNITY
The construction and Housing Boom to provide bolstering demand for ceramic
tiles. It can tie up with housing finance companies private as well as government.
It should open more showrooms to give thrust to display concept.
Concept of selling through retail outlets.
Low per capita consumption (0.15 sq.mt. p.a.) as compared to developed nations, so
lot of potential remains untapped in the existing markets.
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.
Agitated dealers can distort the perception of individual customers.
Competitors have lower price eg. Tiles from Gujarat.
Competition following push strategy providing the higher commissions to
intermediaries.
Regional or local players may be dangerous for the company.
Basic Customs Duty on import of ceramic tiles from China and raw materials
imported from abroad should be corrected to prevent dumping of tiles from China.
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RECOMANDATION
&
SUGGESTION
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Suggestions
The margin policy for dealers should be uniform so that small dealers can also
benefit the same as big dealers.
Providing panel as tile sample in place of providing tiles sample in lose. The
company should provide double sided display panel as panel are easier to manage
as compared to lo se tiles. It will also save space and at the same time panel will
always be in display so that the loss (in terms of breaking the tiles) while taking out
the tiles for customers, can be curtailed. As the company is in retail business also, It should give discounts, gifts , schemes
directly to customers and pass on the benefit directly to them esp. At the time of
festivals or on purchase of a particular type of design or volume etc. But especial
care should be taken in this case for dealers, so they dont feel cheated or in loss.
Some dealers complain that the company launches new designs very soon, so their
is a dead stock problem for dealers. So there should be sufficient time given to the
dealers to clear the stock before forcing him to buy more stock. Also the approvals for the project seems to be time consuming , so higher
management should try to speed up the process by giving some authority and
decision making power at lower levels or appointing an officer exclusively for project
approvals.
Care should be taken about the complaints of colour and quality variation in two
boxes of same tiles.
Packaging seems to be improved as compared to other tiles in the market such asAsian. This will not only make material handling easier at dealer end but also at
consumer end.
Also their seems to be a gap between the products, which gives opportunity to local
tiles to cover that gap. So the company should try to give a wider range of products
at various price tags.
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The company should try to enter into beneficial ties up with private housing finance
company.
It should give importance to brand building and network for enhancing export growth.
Also the company should focus on brand building and advertisement, which willagain help in creating its presence in international market.
The company should also concentrate on other areas of the building apart from
kitchen and bathrooms and should try to promote tiles for these areas by low initial
cost or other marketing tools. This way the company can create new innovative
application of tiles and expand the tile market.
It may introduce a specific dedicated team to look after the overall brand equity.
They will ensure that all showrooms and dealer display centres were in sync with the
Kajaria profile. Also they will look after the external packing material which creates
an eye on look-an feel, resulting in a holistic branding approach.
To grow its institutional business, the company should organize more interactions
with architects, developers and government agencies at its dealer outlets. This would
serve a dual purpose: it would enable the company to acquire an insight into
evolving preferences of some of the most prominent and trend- influencing
architects; on the other hand, it helped the company cater to their evolving
preferences.
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CONCLUSION
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Conclusions
The ceramic tile industry is characterized by intense competition, low entry barriers
and high working capital requirements.
Kajaria is a market leader of ceramic tile industry , but in order to maintain this
position it has to be proactively conscious for market needs.
Kajaria Ceramics is the largest manufacturer of ceramics tiles in India.
Kajaria clearly emerges out to be most preferred choice of customers, with closest
competition with Somany tiles.
Kajaria should include customers feedback, so that company can change range of
products and increase quality of product in accordance with customer taste and
preferences.
In order to build a strong selling network Kajaria needs to take care of the issues of
its dealers to maintain high sales to end users.
The quality and colour variation issues in two boxes of same tiles can hamper the
brand image of the company if not taken seriously.
The low per-capita consumption of ceramic tiles in India, which is currently around
0.5 sq. m per person as compared to 2.0 sq. m per person in countries, like
Malaysia, Brazil and China, offers huge growth potential.
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BIBLOGRAPHY
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Books
Marketing management kotler Philip
Research methodology Kothari C.R
Websites
www.Kajariaceramics.com
www.kajariaworld.com
www.hrjohnsonindia.com
www.bellceramics.com
www.google.com
Others
Kajarias catalogue
News paper
Times of India
Business standard
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ANNEXURE
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Name of the key person: _____________________________________________
Name of the organisation: ____________________________________________
Office address: _____________________________________________________
Contact No.: _______________________________________________________
8.. According to you what does the consumer prefers before buying tiles?
(a) Brand (b) Cost (c) Quality (d) Variety (e) Delivery
9.While buying which brand consumer prefers the most?
(a) Kajaria (b) Somany (c) Johnson (d) Bell (e) Nitco
10. For which portion of the house consumer prefers tiles?
(a) Room (b) Kitchen (c) Bathroom (d) Front elevation (e) Roof (f) Parking
11. Which scheme stands most attractive?
(a) Discounts (b) Free samples (c) Extra (d) Foreign travel (e) Others
(b)
12. The margin of Kajaria tiles is?
(a) Low (b) Limited (c) Satisfactory (d) High
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13. Total no. of boxes sold per month (approx.)?
(a) 1000 (b) 1500 (c) 2000 (d) 2500 (e) other ___________
14. Total no. of boxes of Kajaria sold per month (approx.)?
_________________________
15. Which size (in mm.) does consumer prefers the most?
(a) 200*200 (b) 300*200 (c) 250*400 (d) 300*450 (e) 300*600 (f)150*600
16. Promotional schemes adopted by the company are beneficial for dealers and
associate dealers?
(a) Yes (b) No
17. Any suggestion for tiles industries for future prospects?
______________________________________________________________
______________________________________________________________
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