C H A PTE R 1 RESEARCH M E TH O D O LO G Y

Research Methodology is a way to systematically solve the research problem. The Research Methodology includes the various methods and techniques for conducting a Research. "Marketing Research is the systematic design, collection, analysis and reporting of data and finding relevant solution to a specific marketing situation or problem". D. Slesinger and M. Stephenson in the encyclopedia of Social Sciences define Research as "the manipulation of things, concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an art" There are various types of researchers based upon the studies conducted are the purposes of the study. These types are enlisted below: Pure research Applied research Descriptive research Analytical research Conceptual research 1.1 SCOPE OF THE PROJECT

The study carried out in AHMEDABAD city so its scope is mainly limited to AHMEDABAD city. It gives information about the size of the consumer. It gives information about the services given by distributor to their consumer. It gives information about the competitors products. It will serve consumer in better manner. It provides suggestions to the company to improve their products sales. It gives information about the sales promotion activities to improve the Asians Sale.

1.2 OBJECTIVE OF THE RESEARCH A comparative analysis among some major players of Tiles Industry, especially in AHMEDABAD region in terms of Quality, Brand Equity, Price and Customer Service.
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 To know the awareness of the new DIGITAL VITRIFIED TILES among the end users. To find the problems faced by Builders in Purchasing and Storing.

1.3 RESEARCH DESIGN

Research design is an arrangement of conditions for collection of and analysis of data in a manner that aims to combine relevance to research purpose with economy of procedure.

The type of research design is Descriptive as the objectives are clearly defined and both primary and secondary sources are to be used.

1.4 RESEARCH INSTRUMENT Questionnaire

1.4.3 Characteristics of Questionnaire It asks for obtain all the information required for achieving the research objectives. It contains questions relevant to the study and does not include any irrelevant and unimportant questions. It contains questions that can be answered as quickly and easily as possible. It does not contain questions which are beyond the memory span of the respondents.

1.5 SOURCE OF INFORMATION 1.5.1 Primary Since, data collection signifies a very crucial place in a pilot survey; primary data were collected by personal interview through structured questionnaires.

1.5.2 Secondary

When an investigator uses the data which has already been collected by others, such data is called secondary data. Online articles Past Reports

1.6 SAMPLING PLAN 1.6.1 Sample Size I have taken sample size of 100 Builders of different construction site of the different area.

1.6.2 Sampling Technique A non probability convenience sampling technique was used.

1.7 LIMITATION OF THE PROJECT Every research report is subject to certain limitation. This research report is no exception to it. The following are the limitations of the project report.

The area covered is only Ahmedabad and from this area covered one cannot measure the trend for whole market. As it is difficult to apply the given suggestions to whole existing market, eventually its implementation is also difficult. Sampling type is convenient type and not targeted one; it affects the conclusion which is not 100 percent correct and reliable.

 Technique used to conduct the project is structured questionnaire, which are the commonly used tool & not the reliable one especially when it is used as a single technique (without any combination). The respondents did not show any interest in answering the questionnaire. They felt that it was wastage of their time. Most of the respondents were not able to understand the English language so I need to translate the whole questionnaire in local language and then fill it. Out of the whole research and analysis, very few major brands could be highlighted, leaving aside the other non-popular brands. The collection of primary data is comparatively difficult and sometimes the question of non-response arises because the people may not like to disclose the information. Respondents to whom we questioned about the product did not take the survey seriously and answered the questions just for the sake of answering.

C H A PTE R 2 INDUSTRY PROFILE

2.1 HISTORY OF CERAMIC INDUSTRY

It is believed that the first clay tiles were produced seven to eight thousand years ago in the area now known as the Holy Land. Many sources independently verify that the actual known history of Tiles (and the known usage of wall and floor tile coverings) can be traced back as far as the fourth millennium BC (4000 BC) to Egypt.

In those days, in Egypt, tiles were used to decorate various houses. Clay bricks were dried beneath the sun or baked, and the first glazes were blue in color and were made from copper, very exquisite!

During that period ceramics were also known to be found in Mesopotamia. These ceramics bore decorations, which were white and blue striped and later possessed more varied patterns and colors. Later on, in China too, the Great Center of Ceramic Art, a fine, white stoneware with the earliest Chinese glaze was produced during the Shang-Yin dynasty (1523-1028 BC).

The usage and the art of making and decorating ceramic tiles had spread and by 900 A.D., decorative tiles had become widely used in Persia, Syria, and Turkey and across North Africa. As transport and communication developed, tile usage and its penetration in other territories increased. Wars and territory take-overs caused this art to spread even faster.

The Romans introduced tile making in Western Europe as they occupied territories. The Low Countries of Northern Europe somehow acquired the technology from Persia, while the Moors brought African tiles with them when they invaded Iberia (Spain). It was aboard the ships of Spanish conquistadors that decorative clay tiles found their way to the New World, where they were used primarily to decorate the Churches of newly built missions. By the end of the 12th century, use and manufacture of Ceramic Tiles had spread across Italy and Spain and into the rest of Europe. Till that time they were mainly used to decorate the floors of Cathedrals and Churches. The skill had eventually vanished from Europe in the 16th century
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following the reformation. But the decorative wall tile art had survived in Turkey and the Middle East and the Delft tiles art survived in Holland.

A form of tile making had also evolved among the natives of North and South America at some point. The first decorative tiles to appear in Colonial North America were imported from Northern Europe, mainly England the Brits having hijacked the technology from the Dutch. The tiles were too expensive for utilitarian purposes in the Colonies and were found almost exclusively in the homes of the wealthy.

Through the centuries, tile decoration was improved upon, as were methods of tile manufacture. For example, during the Islamic period, all methods of tile decoration were brought to perfection in Persia. Throughout the known world, in various countries and cities, Ceramic tile production and decoration reached great heights. The tile mosaics of Spain and Portugal, the floor tiles of Renaissance Italy, the faiences of Antwerp, the development of tile iconography in the Netherlands, and the Ceramic tiles of Germany are all prominent landmarks in the history of Ceramic tile.

In the early days, the tiles were hand-made, each tile was hand-formed and hand-painted, thus each was a work of art in its own right. Ceramic tile was used almost everywhere on walls, floors, ceilings, fireplaces, in murals, and as an exterior cladding on buildings.

Today Ceramic tile throughout the world is not hand-made or hand-painted for the most part. 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. 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.

2.2 GLOBAL SCENARIO OF CERAMIC TILES 2.2.1 Global Production

Figure 2.1 World production scenarios

In 2010, world tile production amounted to 9.515 billion square meters. Much of this growth was concentrated in Asia and non Europe where manufacturing increased by 14.9 and 12.2 per cent. Asian nations produced 6.37 billion square meters of tile, two-thirds of the global total. China illustrated its industrial might, increasing its output by 16.7 per cent. This sizeable figure denotes a rise in production of 600 million square meters, which surely exceeds any prior increase in annual manufacturing. The burgeoning superpower made 44.1 per cent of the worlds ceramic

tile, as moderate estimates suggested that Chinese companies produced 4.2 billion square meters of product. Local associations believe that the nation is manufacturing more than 7 billion square meters a year. The success of the Chinese industry has seen many of its companies invest in modern production technology, with sales of Italian machinery in China escalating by 63 per cent.

Manufacturers in Vietnam recorded the greatest percentage increase in production (27.1 per cent) as they made 375 million square meters of tile. The eighth most populous nation in Asia is comfortably ensconced in sixth position on the list of manufacturers having overtaken Spain in the last calendar year. Vietnamese producers have clearly benefited from the economic boom that has taken place in the Communist state since the turn of the century. They have more than doubled their output since 2005 and form one of the few manufacturing sectors that has maintained steady growth in the face of wider financial concerns.

Growth was less pronounced in other parts of Southeast Asia with Thai and Indonesian companies raising their production by 3.1 and 3.2 per cent. Indonesias output has plateau recently after accelerated growth in 2007 and 2008. The firms that exist in that vast archipelago nevertheless improved their manufacturing performance by turning out 287 million square meters of product. Thai firms were as reliable as ever, producing 132 million square meters of tile. South Korea maintains only a peripheral presence in Asian manufacturing, following a fifth decline in its output since 2004. The same can be said of Taiwan, even though it managed to increase production for the first time in five years. Malaysia made 90 million square meters of tile for the second year in a row. India is the second largest tile producer in Asia, though it failed to meet, let alone exceed, the continental growth rate for 2010. An annual rise of 12.2 per cent saw the country produce 550 million square meters of tile, but manufacturing growth was greater in Iran and the United Arab emirates. Firms in the aforementioned countries increased their output by 14.3 and 16.9 per cent. In the past five years Iran has nearly doubled its productivity, with the 210 million square meters it made in 2006 paling in comparison to the 400 million square meters it manufactured last year.
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Syrian companies raised their production to 35 million square meters, and the Saudi performance was solid rather than spectacular after three years of marked progress. North African growth was largely confined to Egypt, which continues to prosper as a budding force in the modern tile industry. Egyptian growth was mild in comparison to the previous year with production rising by 10 per cent to 220 million square meters. It will be interesting to see if local firms have been affected by the political and social unrest that has gripped the nation during the Arab Spring.

There have also been reports of disturbances in Algeria and Morocco where manufacturers tend to make smaller increases in their output. Algerian companies repeated their 2009 performance 30 million square meters whilst Moroccan firms raised their production to 56 million square meters. Africa produced 370 million square meters of tile, increasing its output by 6.6 per cent. The state of the South African industry seems quite inconsequential as this continental growth has occurred despite the drop and stagnation in South African production.

For many years the manufacturing sector of the tile industry was adversely affected by the declining capabilities of Italy and Spain. The problems that plagued those tile producing nations not only imperiled many of the worlds most reputable manufacturers but also had the unfortunate effect of overshadowing much of the industrys progress in Asia, South America and non Europe. Both countries enjoyed belated revivals in 2010 which provided much needed boosts to tile production in the European Union.

Manufacturing in the 27 state bloc increased by 4.8 per cent to 1.128 billion square meters. This would not have been possible without the 5.3 per cent rise in Italian production and the 12.8 per cent surge in Spain, as the output of German and Portuguese companies fell once again. Germany manufactured two per cent fewer tiles (50 million square meters) while the previously unswerving Portugal reported a second consecutive drop of 7.1 per cent. Spanish firms made 366 million square meters of tile, trailing their rivals in Italy by 21 million square meters. Spain has failed to produce more tiles than Italy since 2007 but may have hopes of regaining the top spot in

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Europe in the near future. The two nations lie fifth and seventh respectively on the list of manufacturers. It appears the Polish industry has lost some of its lustre following the end of the manufacturing boom that accompanied the countrys entry into the European Union. For the third time in four years the output of Polish companies stalled at 112 million square meters, an invaluable contribution that will hopefully increase in years to come.

Three nations that border the ever expanding Union are among the worlds leading producers of tile. Russia recovered positively from a tough 2009 when its manufacturing plummeted by 20.4 per cent. The country produced 7.7 per cent more tiles 126 million square meters but further progress is required to reach the heights of 2007 and 2008. Ukraine matched its output of the preceding twelve months, making 44 million square meters. Tile production is a nascent industry in the former Soviet state having risen twofold in just three years. Turkey remains the most prolific manufacturer in the non Europe zone, last year producing 245 million square meters of tile. Turkish companies increased production by 19.5 per cent, after three frustrating years that saw their output decline by nearly 23 per cent. This impressive growth was only bettered by Vietnamese tile makers. Approximately 94 per cent of the tiles manufactured outside the European Union could be attributed to these three nations.

In Central and South America, four-fifths of production takes place in Brazil. This is unsurprising as it is the economic powerhouse of Latin America and the only country in the region to regularly increase its output and capacity. Brazil is currently the second largest manufacturer in the world and last year strengthened its tile production by 5.4 per cent. Its tile makers combined to produce 753 million square meters of product, but their market share diminished from 8.4 to 7.9 per cent. Production stalled in Colombia and Venezuela, and increased only marginally in Argentina from 56 to 58 million square meters. Central and South American nations made 940 million square meters of tile, which equated to 9.9 per cent of the worlds output.

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Despite increasing its production by 8.2 per cent, North America remains the least significant of the major manufacturing regions. This improvement mostly occurred in the United States, where tile firms raised their output by 13.8 per cent. American companies produced 60 million square meters of tile for the first time in five years, which placed the country in 18thposition on the list of manufacturers. Mexico bounced back from its recent downturn which was far more severe than originally thought. After withstanding a slump in their annual production of 10.7 per cent, Mexican manufacturers increased their output by 6.6 per cent to 195 million square meters. Oceania produced seven million square meters of tile. 2.2.2 Global Consumption

Figure 2.2 World consumption scenarios World ceramic tile consumption rose from 8.46 to 9.35 billion square meters. Locally made products constituted 79.5 per cent of that total as they had the year before. The only area to experience a line in sales was the European Union, which used 5 per cent fewer tiles. eU countries consumed 941 million square meters of product, roughly 10 per cent of the tiles sold around the world. The worst performing market was Poland where consumption fell by 8.6 per cent to 85 million square meters. This contraction as sharp as well as symbolic as the Polish

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market has now returned to the size it was in 2004 when the country joined the European Union. Years of progress and stability had turned Poland into a regional centre of ceramic tile consumption, but substantial dips in domestic demand have come at time when local production is stable and exports are rising.

The greatest tragedy has been the alarming collapse of the Spanish consumer market, which has shrunk by 54 per cent since 2006. A further drop in consumption dealt a serious blow to the local industry, with a slump in sales of over seven per cent having a detrimental impact on producers and suppliers alike. Spaniards purchased 145 million square meters of tile, two million square meters more than their Italian counterparts. Italy endured a smaller contraction of 2.3 per cent, which provided welcome respite from the much greater slumps of 2008 and 2009.

The news from France was decidedly more upbeat as tile sales rose by 4.4 per cent. Germany and Great Britain purchased near identical amounts of tile, with consumption in the latter increasing from 50 to 51 million square meters. This slight advance in the UK market compensated for the drop in German sales from 106 to 105 million square meters. Non-eU nations Russia and Turkey are the biggest tile consumers in Europe. Both markets recorded similar growth rates and consumed matching quantities of tile in 2010: 155 million square meters.

It is an incontrovertible fact that Asia is the main consumer market in the tile industry of today. The richly diverse continent, stretching from the Pacific Ocean to the Mediterranean Sea, consumed 64.4 per cent of the tiles purchased around the world in 2010. Asian tile buyers increased their consumption by 14 per cent to 6.026 billion square meters. This growth was apportioned among several markets and not overly concentrated in China alone.

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For instance, the 330 million square meters of tile purchased in Vietnam signified a rise in consumption of 37.5 per cent. Filipino tile sales leapt considerably, peaking at 48 million square meters. Positive trends were also observed in Thailand and Malaysia where consumption soared by 11.1 and 15.9 per cent. Indonesia and South Korea did not participate in or contribute much to this expansion with sales in the latter only increasing by 1.3 per cent. Indonesia suffered a rare setback after its tile consumption had doubled from 148 to 297 million square meters in the three preceding years. Demand fell by 6.7 per cent with sales totaling 277 million square meters. China, unsurprisingly, is the worlds largest consumer of tile having purchased 3.5 billion square meters of product. It is astonishing to think that one country does account for 58.1 per cent of all Asian sales and 37.4 per cent of global tile consumption. India constitutes the second largest market for ceramic tiles in Asia with purchases totaling 557 million square meters in 2010.

Iran is the key consumer market in the Middle East. Interest in ceramic tile has risen exponentially, with sales of 335 million square meters owing much to the prolificacy of the nations manufacturers. Saudi consumption also increased for the fifth time in succession with sales jumping by 9.4 per cent to 182 million square meters. The United Arab emirates was one of the few places in the region to register a downturn in sales in 2009 but that was put right immediately by a remarkable rise in consumer activity. The seven emirates increased their consumption by 29.9 per cent to 100 million square meters.

Iraq and Syria are purchasing ever larger quantities of tile which in the case of the former is probably due to large-scale and widespread reconstruction efforts. Iraqi tile consumption has soared from just three million square meters in 2006 to a record 57 million square meters last year. Syria has qualified for the Ceramic World Review top consumption list after its citizens procured 42 million square meters of tile in 2010. The conflict taking place in the single-party state is likely to have a debilitating impact on the fledgling production and consumption sectors of the Syrian tile industry.

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Tile consumption in Africa rose by 9.3 per cent to 516 million square meters. Approximately 60 per cent of those sales occurred in three North African countries. Egyptian consumption has virtually trebled in the past seven years and sales climbed once again in 2010 from 180 to 200 million square meters. Algerian tile suppliers would have been pleased with a 20 per cent increase in sales, which coincided with slower growth in neighboring Morocco.

Brazilian products remain incredibly popular in their own domestic market even though they are mostly ignored by overseas buyers. Another increase in consumption of 8.5 per cent meant that for the first time ever sales in Brazil reached the milestone figure of 700 million square meters. This rapidly expanding market accounted for 71.6 per cent of sales in South and Central America and 7.5 per cent of global tile purchases. Consumption statistics for Argentina and Colombia were as comparable as ever, with the two nations making up for disappointing sales in 2009. Argentine shoppers purchased an additional three million square meters of tile a rise of 5.5 per cent whilst Colombians installed 54 million square meters. For three years the Colombian market has fluctuated slightly, with consumer demand rising or falling by no more than 1.9 per cent.

US consumption figures have been altered retrospectively, with statistics pertaining to the last two years revised upwards by 7.1 and 10.1 per cent. Although these amendments provide some relief they do not disguise the obvious decline in American tile sales. in 2010, consumer demand in the United States rose by 7.7 per cent from 173 to 186 million square meters. Locally made tiles were reasonably sought after as were the many products imported from Mexico, italy and China. Mexican consumption totaled 168 million square meters, an increase of 3.1 per cent. The two countries accounted for 91 per cent of the tiles purchased in the North American market. Tile consumption in Oceania climbed by 2.3 per cent to 44 million square meters.

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2.3 Scenario of Asian Countries 2.3.1 Bangladesh

The average production cost of export quality tiles in Bangladesh is in the range of US $ 2.8-3.5 per sq. meter... The country has abundant supply of indigenous natural gas and cheap labor. If local ball clay is used in the material handling and transportation cost, bringing down the total cost of production to US $ 2.5 3 per sq. meter. But the local ball clay feldspar and quarts are not as qualitative as those imported from India and China. The Bangladesh government has exempted the raw materials of export oriented tile units from import duties. Natural gas is available in abundance in the country at a cheap rate of US $ 0.08 per cubic meter. Most of the tiles unit and are situated in. Around Dhaka, the capital city, the location of the warehouses is near from the mines and the Chittagong port. The only apparent disadvantage of having a manufacturing base in Bangladesh is that the frits, colors and glazes have to be imported from Spain or Italy. The cost of importing these materials is as high as 30 percent of the total cost of production.

2.3.2 Pakistan

It has an ample natural gas resource and the hydro electricity is also cheap. The Cost of tile production in the country is around US $ 4 per sq. meter. The raw materials and labor is economically available .But the fritz, glazes and colors have to be imported.

The vast distance between the Northwest Frontier provinces and the Southern provinces escalates the distribution cost. 4Most of the countrys tile units are near Karachi, but the main consumption centre is in Punjab in the north.

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2.3.3 Iran Iran has one of the highest tile production costs in Asia i.e. US $ 5-6.5 per sq. meter. Inflation is the main culprit. The nation inflation rate is around 60 percent per annum. The quality of clay isnt very good and hence huge quantities of kaolin a nd ball clay have to be imported from Europe. The feldspar and quartz are available locally and only a limited its other ASIAN neighbors, Iran has three major fritz and glaze producers.

2.3.4 Turkey

Borax is a key raw material in tile production and Turkey has two third of the worlds reserves. The tile unit in Turkey has an average capacity of European nations. This enables them to avail of the economies of large scale production. But energy cost is dearer and constitutes 33 percent of the all areas and hence LPG has to be used. The average cost of tile production is around US $ 4 per sq. meter. Lack of government support is a cause of concern for the nations of the tile industry.

2.3.5 India

India has abundant qualitative raw materials and cheap labor. Its geographical location is highly suitable for international trade. But the major deterrents are the high energy and distribution costs. Thus the cost of production rages between US $ 3-4 / Sq. meter. The glazes and colors too have to be imported. The policies of the government were not very encouraging in past. The excise duty on ceramics tiles was as rationalized to 10 percent, with 3% Cess & Edu. Cess on ED. But this too is on the higher side.

Internationally, with a 20 percent annual growth, the vitrified tile is the fastest growing segment in the ceramic tile industry, accounting for close to 10 percent of the overall tile production across the world.

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In India too, they are emerging as the next generation of flooring material. A perfect composite when one needs the efficacy of ceramic tile along with the tenacity of natural stone these tiles are set to become a part of our modern day existence.

Even as the floor and wall tile vie each other for supremacy, the sunrise segment with tremendous growth potential is the vitrified tiles. Worldwide, the vitrified tile segment is a $ 4 billion product and is regarded as the product of the future. In India, this segment is still in its nascent stages of growth, with an output of only 3 million square meter p.a. with only 5 manufacturers. Thus the vitrified tile segment is poised to see a lot of action in the near future as it sis the turf on which the great Indian tile war would be fought.

2.4 CERAMIC TILES INDUSTRY IN INDIA

Ceramic Tiles today have become an integral part of home improvement. It can make a huge difference to the way your interiors and outdoors look and express. The Indian tile industry, despite an overall slowdown of the economy continues to grow at a healthy 15% per annum. Investments in the last 5 years have aggregated over Rs. 5000 crores. The overall size of the Indian ceramic tile industry is approximately Rs 18,000 crores (FY12). The production during 2011-12 stood at approx. 600 million square meters.

The Indian tile industry is divided into organized and unorganized sector. The organized sector comprises of approximately 14 players. The current size of the organized sector is about Rs 7,200 Crores. The unorganized sector accounts for nearly 60% of the total industry bearing testimony of the growth potential of this sector.

India ranks in the top 3 list of countries in terms of tile production in the world. With proper planning and better quality control our exports (presently insignificant) contribution can significantly increase.
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2.5 CURRENT STATUS OF THE INDUSTRY

The 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 0.50 square meters per person compared to China (2.6 square meters per person), Europe (5 to 6 square meters per person) or Brazil (3.4 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. This category of products account for almost 50% of total tiles sales by value in this industry.

These new products and the conventional wall & floor tiles have together made the organized industry grows to a formidable Rs. 7,200 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 an accelerating growth annually. The top-end of the global export market is presently dominated by China (36.8%) and Italy (15.1%)

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2.6 MEMBERS IN CERAMIC TILES INDUSTRY NAME OF MEMBER Anant Raj Industries Ltd. Antique Granito Pvt. Ltd. Asian Granito (India) Ltd. City Tiles Ltd. Century Tiles Ltd. Deco Lights Ceramics Ltd Euro Ceramics Ltd. Gokul Ceramics Pvt. Ltd. H. & R. Johnson (India) Ltd. Jalaram Ceramics Ltd. Kajaria Ceramics Ltd. Lorenzo Vitrified Tiles Pvt. Ltd. Murudeshwar Ceramics Ltd. Oracle Granito Ltd. Orient Ceramics And Industries Ltd. RAK Ceramics India Pvt. Ltd. Regent Granito (India) Ltd. Restile Ceramics Ltd. Sentini Cermica Pvt. Ltd. Sogo Ceramics Pvt. Ltd. Somany Ceramics Limited Suman Ceramics Vita Granito Pvt. Ltd. Varmora Granito (P) Ltd. Vrundavan Ceramics Ltd WEBSITE www.romano.trade-india.com www.antiquegranito.com www.asiangranito.com www.citytilesltd.com www.centurytiles.com www.decocovering.com www.eurogranamite.com www.vrundavanceramic.com www.hrjohnsonindia.com www.siddharthceramics.com www.kajariaceramics.com www.lorenzovitrified.com www.naveenceramics.com www.oraclegranito.com www.orienttiles.com www.rakceram.com www.regentgranito.com www.restile.com www.sentinicermica.com www.sogovitrified.com www.somanyceramics.com www.sumanceramics.com www.vitagranito.com www.varmora.com www.vrundawanceramic.com

Table 2.1 Members in Ceramic Tiles Industry

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2.7 PRESENCE OF CERAMIC INDUSTRY IN INDIA

Figure 2.3 Ceramic industries across India

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AML for Antique Marbonite Pvt. Ltd., Morbi, Gujarat AGL for Asian Granito (India) Ltd., Sabarkantha, Gujarat CGT for Coral Gold Tiles Pvt. Ltd., Morbi, Gujarat CGL for Coral Granito Pvt. Ltd., Morbi, Gujarat CTL Cengres Tiles Ltd., Dist. Mehsana, Gujarat ECL for Euro Ceramics Ltd., Kutch, Gujarat GCL for Gokul Ceramics Pvt. Ltd., Rajkot, Gujarat JCL for Jalaram Ceramics Ltd., Gandhinagar, Gujarat KCL for Kajaria Ceramics Ltd., Sikandrabad-UP, Gailpur-Rajasthan, Mobi-Gujarat OGL for Oracle Granito Ltd., Sabarkantha, Gujarat OCL for Orient Ceramics & Industries Ltd., Sikandrabad, UP OVL for Ozzy Vitrified Pvt. Ltd., Morbi, Gujarat RFL for Radiant Floor Tiles Pvt. Ltd., Morbi, Gujarat RAK for R.A.K Ceramics India Pvt. Ltd., Samalkot, AP RGL for Regent Granito (India) Ltd., Himatnagar, Gujarat RCL for Restile Ceramics Ltd., Medak, AP SGL for Senso Granito Pvt. Ltd., Rajkot, Gujarat SCP for Sentini Cermica Pvt. Ltd., Krishna, AP SIC for Silica Ceramics (P) Ltd., West Godavari, AP SCL for Somany Ceramics Ltd., Bahadurgarh-Haryana, Kadi-Gujarat SJT for Spectrum Johnson Tiles Pvt. Ltd., Rajkot, Gujarat STL for Sunshine Tile Co. Pvt. Ltd., Rajkot, Gujarat SWC Swastik Ceracon Ltd., Dist. Mehsana, Gujarat UCL for Umiya Ceramic Pvt. Ltd., Morbi, Gujarat VGL for Varmora Granito (P) Ltd., Rajkot Gujarat VCL for Vrundavan Ceramics Ltd., Rajkot, Gujarat

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2.8 FIVE FORCE ANALYSIS

Intensity of Existing Rivalry

Exit barriers are low. Fast industry growth rate. Large industry size. Large number of competitors.

Bargaining Power of Suppliers

Low cost of switching suppliers. Volume is critical to suppliers. High competition among suppliers.

Threat of Substitutes

Substitute product is inferior. Substitute is lower quality. Substitute has lower performance. Low cost of switching to substitutes.

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Bargaining Power of Customers

Large number of customers. Buyers require special customization. Product is important to customer. High buyer price sensitivity.

Threat of New Competitors

Customers are loyal to existing brands. Advanced technologies are required. Strong brand names are important. Strong distribution network required. Entry barriers are low.

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C H A PTE R 3 C O MPA N Y PR O F I LE

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3.1 ORGANIZATION PROFILE

ASIAN Granito India Limited has been churning out floor tiles since year 2000. Companies have established fully automated manufacturing plant at Idar (Gujarat-India) and their products are well accepted in the market.

ASIAN Granito India Ltd. has established manufacturing plant at Ceramic Zone, Dalpur, Sabarkantha District, and Gujarat, India. The dynamic & experienced entrepreneurs Mr. Kamlesh Patel, Mr. Hasmukh Patel, Mr. Ramesh Patel and Mr. Mukesh Patel are the promoters and display acumen, exuberance and professionalism. Their in-depth knowledge, far sighted business policies, has strategically positioned ASIAN Granito as Indias leading manufacturer of vitrified tiles within a short spun of time.

Driven by innovation and passion to excel, ASIAN Granito provides the most exotic and aesthetic range of vitrified tiles in sprawling designs and ASIAN Granito is the formidable choice of architects, interior designers, constructions companies and customers due to the distinctive product range that comes with irreplaceable quality of international repute. Highly acclaimed for quality, our products are popular in India and overseas.

At ASIAN Granito India Ltd. modernization plays a pivotal role we embrace technological developments; changes are made in the technology and processes to meet the constantly changing requirements of clients. Our sophisticated manufacturing facility comprises of highly advanced technology and experienced workforce. ASIAN Granito takes pride for installing its manufacturing unit with India's Longest Roller Kiln, Indias first Horizontal Dryer from SACMI, Biggest Press 3590 from SACMI, India's Biggest Ball Mill, and Rotor Printer etc. With a total production capacity of plants, 36,800 Sq. Meter of tiles per day, our unit stands among one of the largest producers of vitrified tiles in India. As a result of our undeviating commitment to quality

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ASIAN Granito has created an enviable position in the industry and has been regular supplier to some of the most prestigious projects. ASIAN Granito aims to fully explore international avenues and emerging markets around the world.

3.2 VISION, MISSION & MANAGEMENT Vision To become a leader in ceramic industry. To uphold quality at every stage and maintain consistency to win the trust of our valued customers worldwide. To Remain as Innovative Global Leader.

Mission

We shall provide total customer satisfaction and achieve leadership in chosen markets, products and services across the globe, through excellence in technology, based on world-class research and development.

Management

Managing with professionalism has always been the hallmark of the Company. We have a reputation for having a fiercely talented, performance oriented employees with highest levels of integrity and professionalism. It is the mainstay of all its endeavors and the cornerstone of its corporate culture. Excellent teamwork & effective co-ordination among the various agencies involved give an edge over our competitors. Extensive planning using the latest management techniques enables us to exercise direct control over our operations & schedules.

Asian Granitos greatest asset is its unrivaled range of professionally qualified and experienced personnel. In order to serve our clientele better, we continuously invest in new technologies and
28

training to develop and enhance the capabilities and competence of our employees. The Company offers performance-based incentive to honor outstanding work. We conduct periodic group discussion among employees and management enhancing technical expertise of employees and inculcating managerial skills are an integral part of our employee empowerment program.

The Companys credibility & standards do not allow it to compromise on quality. Established Quality Assurance and Quality Control procedures are judiciously followed to maintain quality standards at all stages.

3.3 AWARDS AND MILESTONE

3.3.1 Awards 1st Prize in Surat - Sthaptya 2003 1st Prize in Surat - Mega Show. June - 2004 2nd & 3rd Prize in Coimbatore - Mega Show. July - 2004 1st Prize in Bangalore - Mega Show. October - 2004 1st Prize in Ahmedabad - October - 2004 2nd & 3rd Prize in Kochi - Mega Show. October 2004 2nd Prize in Delhi - Mega Show. December - 2004 1st Prize in Indore - Mega Show. January - 2005 2nd Prize in Ahmedabad - Mega Show. January - 2005 3rd Prize in Ludhiana - Mega Show. January - 2005 1st Prize in Chandigarh - Mega Show. February - 2005 1st Prize in Pune - Mega Show. February - 2005 3rd Prize in Surat - Mega Show. June - 2005 1st Prize in Coimbatore - Mega Show. July - 2005 1st Prize in Ludhiana - Mega Show. August - 2005 1st Prize in Hyderabad - Mega Show. September, 2005 2nd Prize in Kochi - Mega Show. October, 2005 1st Prize in Chandigarh - Mega Show. February, 2006

29

 2nd Prize in Delhi - Mega Show. December, 2007 2nd Prize in Jaipur Decor India Exhibition. January, 2010 1st Prize in Ahmedabad - MBA Property Show. February, 2010

3.3.2 MILESTONE

Being a leader in the industry, the Company believes in nothing less than excellence. Asian Granitos continued success is the direct result of the trust its clients have placed in its quality and services 2000 2001 2002 2003 2004 2005 2006 Foundation stone laid for ASIAN TILES LTD.- Idar. Produced Ceramic floor tiles size: 12x12 2500 Sq. Mtr. per day. Produced Ceramic floor tiles size: 16x16 2500 Sq. Mtr. per day. Ceramic floor tiles total production capacity 6000 Sq. Mtr. Per day. Established ASIAN GRANITO INDIA LTD. Himatnagar - production of Vitrified Tiles size: 24"x24" & 20x20 4000 Sq. Mtr. Per day. Expansion of production 6000 Sq. Mtr. Per day with Vitrified Tiles Size: 36x36. Expansion of production 6000 Sq. Mtr. Per day with Vitrified Tiles Size: 800x1212mm. Launching of ASIAN WORLD (Company's Exclusive Showroom) in 14 cities 2007 Ahmedabad, Bangalore, Chennai, Coimbatore, Gandhinagar, Himatnagar, Jaipur, Kochi, Mumbai, New Delhi, Pune, Kolkata, Chandigarh & Surat. 2008 Company launched exclusive collection of wall tiles & Introduced India's largest & finest size: 900x300mm with 10000 Sq. Mtr. Production per day. 2009 2010 2010 2010 2010 Company started Production of Exclusive range of Asian Marble Stone (10x4 Feet Slabs) Start 15000 sq.mtr. wall production Per day. Company started Production of Asian Quartz Stone (10x4 Feet Slabs) Launching of Grestek Nxt Digital Ceramic wall Tiles. Launching a new project Asian Natures fresh in Agro based Expansion.

30

3.4 COMPANYS PRODUCTS Grestek Nxt Digital Vitrified Collection Grestek Ceramic Wall Tiles Vitrified Tiles Aquart Ceramic Floor Tiles Marble Stone Quartz

3.5 COMPETITIVE STRENGTH

The company emphasis on reaching out to the customers, consistently maintaining and improving quality, constant innovation and competitive pricing has held them in good stead. Outlined below are reflections of their competitive strengths and that of our Subsidiarys.

3.5.1Dedicated and experienced management team

They have a dedicated and experienced management team comprising Promoter Directors and key managerial personnel in addition to Promoters, who have an average experience of twelve years in this industry. They also have a core management team which assists the top level management in identifying new opportunities and in the implementation of the business strategies of the Company.

31

3.5.2 Efficiency of the production processes

They are equipped with modern technology at their vitrified tiles plant and ceramic tiles plant (operated through our Subsidiary) and they believe that they are amongst the first vitrified tiles manufacturers who use the latest equipment and technology. They also use Management Information Systems (MIS) tools for running their operations at optimal efficiency and the average capacity utilization of the vitrified tiles plant and the ceramic tiles plant was approximately 90% in Fiscal 2011. Their trained and experienced manpower has also helped in streamlining the production process and increasing the output.

3.5.3 Focus on quality and innovation

The company believes that quality and innovations are the bed-rock of successful strategy. Towards this end they stress on and constantly strive to maintain and improve the quality of the products. This focus is reflected in the standard of the quality systems which have been certified ISO 9001:2000. They have a R&D team comprising of six persons headed by the president of production department which focuses on producing new designs and concepts for tiles. The company has provided new dimensions to the size of tiles in the Indian market by introducing slabs of tiles with a size of 1212mm x 808 mm into the market. This enables them to compete with greater efficiency against the marble industry. They have also introduced various designs such as metallic tiles of size 308 mm x 616 mm, wooden tiles of size308mm x 616 mm, stone tiles of size308 mm x 616 mm and Rustic Plus Tiles of size 397 mm x 397 mm in the market.

3.5.4 Proximity to raw material sources

The main raw materials used in the production processes are available in large quantities in the neighboring state of Rajasthan. Their units based in Gujarat, are easily accessible by road and also have the advantage of proximity to the Kandla Port. The transportation costs constitute a
32

substantial part of the total costs and proximity to raw materials enables us to maintain cost efficiency.

3.6 BUSINESS STRATEGY 3.6.1 Offer a complete spectrum of solutions for the construction industry. The company believes that the construction sector is poised for rapid growth in the coming years, both in the urban and rural areas. They plan to capture a major share of this expanding market by offering a complete range of ceramic tiles for the construction industry under a single roof.

3.6.2 Expand sales and distribution network. Companys sales and distribution network plays a major role in the effective distribution of the products across the country. In addition to increasing the number of display centers, they propose to expand their network geographically to other regions, covering smaller cities and major towns where the demand for tiling solutions is also increasing.

3.6.3 Focus on Product Innovation. They try to focus on creating innovative designs in tiles through their R&D efforts. They have established a R&D laboratory at their Himmatnagar plant, which is supervised by the trained engineers. They have established a feedback mechanism from the customers / distributors which enables them to understand the market perception and demand.

3.6.4 Focus on the export market. In Fiscal 2009 and Fiscal 2010 they generated export revenues of Rs. 1.76 million and Rs. 0.10 million respectively which contributed a nominal amount to their total turnover. At present for the vitrified sector, they are able to realize better prices in the local market and hence, are not
33

keen to the foreign market. However, with the increase in competition, they believe that the export market can be tapped to enhance their export revenue and add a new and important source of revenue. The same will also help them to get better revenues for their proposed wall tiles unit. They propose to establish distribution networks out-side India in order to expand the export activities.

3.7 QUALITY POLICY

Asian Granito has built a reputation for delivering high-end products. A systematic and comprehensive Quality Management System compatible with global standards ISO 9001:2000 certified by KPMG is followed at all stages to ensure high quality end result. Online quality control of their manufacturing from SACMI of Italy ensures that all the products go beyond being just good but exceeds customer expectations.

With the responsibility of every employee to implement and adhere to stringent quality policy, the products manufactured go through stringent quality checks. They strive to uphold quality at every stage to forge enduring relationships with the principals-customers, suppliers, distributors and resources partners. The QMS is reviewed at periodic intervals to check its effectiveness. The cutting edge technology at our disposal helps achieve excellence in quality. Asian Granito India Ltd. is committed to harness excellence by implementing strict quality control policy. Technology incorporated in their manufacturing plant is sourced from the best technology provides in the world.

3.7.1 Quality Measures

They at ASIAN do not assure quality simply by inspecting products, but by establishing stringent process controls through Quality Management Systems throughout the manufacturing facilities.

34

They have regular Quality Audits to ensure consistently high quality of raw materials and the subsequent finished products. Traceability is maintained throughout the manufacturing process.

We instituted a rigorous Quality Management System in our plant, which ultimately resulted in all our processes getting certified by KPMG for the international ISO 9001:2000 quality norms.

3.7.2 ISO 9001: 2000 Certification

They instituted a rigorous Quality Management System in their plant, which ultimately resulted in all their processes getting certified by KPMG for the international ISO 9001:2008 quality norms.

35

3.8 EXPORTS

Figure 3.1 Countries where Asian Granito Exports its products

Asian Granito exports about 20% of the production to its global customers, spread across more than 12 countries, including the United States, Africa, Gulf & Middle East countries, and this network is growing on and on.

36

3.9 COMPETITIORS

Figure 3.2 Competitors

37

3.10 SWOT ANALYSIS

Strength

Well maintained and fully atomized production procedures with intelligent technical persons. Proximity to raw materials (Rajasthan). Continuous focus on creating innovative designs in tiles through their R&D efforts.

Weakness

Company lacks of Marketing and Promotional activities. No proper feedback and communication channel for the existing customers. Lack of designs and varieties in sanitary ware in the company showroom. Not inclined towards rural markets, they are the next big markets due to high rate of urbanization.

Opportunity

Having a good team of technical persons can enhance increase their quality and designs a bit to absorb customer base. Can capture untapped rural markets where small retailers are doing business with local tiles. Can increase its showrooms and outlets in the regions of India where other players are doing fair business.
38

Threats

Hike in interest rate and inflation result in increase in price of raw material which also hurt the sale of company. Highly competitive market due to entering of new players in the tile market and also due to increase in import of vitrified tiles.

39

C H A PTE R 4 LI TE R A TU R E REVIEW

40

4.1 SPRUCE UP THE FLOOR (Article of economic times)

For use in the exteriors of a house portico or verandah various vitrified tiles can be chosen from, for these tiles have a very long life. But for commercial settings, as in shops and showrooms, 'fully vitrified tiles' are more suitable than any other vitrified tiles as it absorbs less than 0.5% water and are frost resistant . The price for fully vitrified tiles ranges from Rs 60 to Rs 100 per sq ft. Fully vitrified tiles come in both glazed and unglazed forms. The unglazed tiles are available in the price range of Rs 75 to Rs 150 per sq ft while the glazed tiles are priced at Rs 50 to Rs 100 per sq ft. Glazed tiles are also called mirror polished tiles. These tiles are dry pressed using clays, silica, colouring oxides, and feldspar fired around 1200 degrees. Apart from the fully vitrified tiles there are normal vitrified tiles and semi vitrified tiles. If the water absorption is between 0.5% and 3%, it is a normal vitrified tile. These can be both drying pressed or extruded and it costs from Rs 50 Rs 150 depending on the design, quality and also on the company. A semi vitrified tile has water absorption capacity of 3% to 6%. These are also called porcelain tiles. It is generally dry pressed. Its range starts from Rs 40 to Rs 70 per sq ft. In semi vitrified tiles a new variety called imported or Chinese vitrified tiles is also present. These are cheaper in both quality and price. It comes from Rs 35 to Rs 50 per sq ft. The unglazed semi vitrified tiles also come in the same range. For interior use, anti-skid tiles are preferred. These are a part of fully vitrified tiles. But anti-skid tiles come only as rustic browns and greys which makes the choice limited. They range from Rs 50 to Rs 100 per sq ft. These are generally polished for aesthetic purposes. "The polishing process also involves grinding so extra care needs to be taken as it could reduce the overall thickness and it can also alter the overall dimensions of the tiles. At designing and installation process also, extra care needs to be taken," says Ranjana Choudhary, a tile designer.

41

Chirag of Dynamic Interiors says that tiles which are pressed should be spaced at 3 mm and the extruded tiles should be placed at a distance of around 5mm. "The semi vitrified tiles are porous due to which soil particles get stuck in the pores. It could affect its colouring and it is difficult to remove these particles. Though there is no solution at present but it does not bother much because it becomes visible after many years," says Chirag.

4.2 DIGITAL TILES THE LATEST TRENDSETTER (Article by TTI news bureau) The tile industry has grown rapidly over the years from clay and baked tiles to synthesized digitally printed ceramic tiles. These digital ceramic tiles are digitally printed and can be made to resemble any natural material including stone, marble, wood, etc. Through digital printing, tiles today can also be customized offering immense flexibility to designers.

Know-how

Digital printing is a procedure of printing data and images directly from a computer onto paper or any other suitable medium or substrate. The digital printer referred as ink-jet printer when used for printing documents and photo-quality images also employs the digital printing technique. Digital printing is a non-impact printing technology that uses droplets of ink jetted from a small aperture to a specified position on the surface to create an image. Four colours cyan, magenta, yellow, and black, (CMYK) are combined in various ways to create virtually any colour required. We use the system that enables this kind of printing process to be used on Vitrified Tiles. Thus, tiles can now be adorned with any type of photo-quality image or pattern on a plain or textured surface.

A digital printer has a print head which contains hundreds of tiny openings through which a measured quantity of ink is ejected out. Each gap has a piezoelectric crystal located at the back of the ink reservoir. When the crystal receives an electrical impulse from the computer it starts vibrating. When the crystal vibrates inwards it displaces a precise amount of ink out of the nozzle. Hundreds of such nozzles work in tandem to create millions of such droplets that together combine to form the desired image or pattern.
42

4.3 STATISTICS OF CERAMIC INDUSTRY IN INDIA

Ceramic tiles as a product segment have grown to a sizeable chunk today at approximately 680 Millions Square 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 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.

The main product segments are the Wall tile, Floor tile, Vitrified tile and Industrial tile segments. The market shares (in value terms) are 20%, 23% 50%, and 7% respectively for Wall, Floor, Vitrified, and Industrial tiles. The tiles are available in a wide variety of designs, textures and surface effects. They cater to tastes as varied from rustics to contemporary marble designs in super glossy mirror finishes. Both, traditional methods of manufacturing (tunnel) and the latest single fast firing methods are deployed in manufacturing. Some of the latest trends in manufacturing methods can be seen in India. The investments in the last five years are approx. Rs.2000 crores. The industry also enjoys the unique distinction of being highly indigenous with an abundance of raw materials, technical skills, infrastructural facilities despite being fairly capital intensive. A total of over 5, 50,000 people are employed in the sector. Out of this, 50,000 people are directly employed and 5, 00,000 are indirectly associated. The potential is huge considering the per capita consumption of ceramic tiles in India. Currently it is at 0.50 square meters per person in comparison to over 2 square meters per person for like countries like China, Brazil and Malaysia.

43

1. 2. 3. 4. 5. 6. 7.

World production: India's Share: World ranking (in production): Per capita consumption: Global Industry Growth Rate: Growth Market): Rate (India Domestic

9515 Million sq.mt 600 Million sq.mt. 3 0.50 sq.mt. 11% 15%

National Player's Turnover (India): Rs 7200 crores a). Glazed Wall Tile share: b). Glazed Floor Tile share: c). Vitrified Tile share: d). Industrial Tile Share: 20% 23% 50% 7% Rs 10800 crores

8. 9.

Regional Player's Turnover: National Sector: a). Share of Production: b). No. of units:

40% 14

10.

Regional Sector: a). Share of Production: b). No. of units: 60% 200 (approx) (70% based in Gujarat region) 50,000 direct & 500,000 indirect Rs 5000 crores

11. 12.

Job Potential: Investments in last 5 years:

Table 4.1 Statistics of Ceramic Industry in India

44

4.4 IMPORT & EXPORT OF CERAMIC TILES 4.4.1 Import of Ceramic Tiles to India for the period Jan 2011 to Feb 2012
Quantity (Box,CTN,Kgs,Nos, Pcs,Set,Sqm) Month Vitrified Tiles Glazed Tiles Vitrified Tiles Glazed Tiles Vitrified Tiles Glazed Tiles Quantiy Value (Rs.) USD_Value Value Rs.

USD_Value

Total

January February March April May June July August

1111851 1426480 948579 734947 1546165 1646651 1460440 2088139

309542 423308 383036 306626 571370 1335516 682390 631381 532008 464371 346571 540799 1147065 709609

370906552 489369015 268860469 99583406 459440185 471562648 475513061 642789904 688155793 832178506 1059981671 1048906845 1143988066 898776102

108377780 143622948 128412305 43638914 208322165 191633857 222366569 244261714 190558475 193353197 141906939 205524692 409764363 291213016

8133903 10650044 5883176 2203178 10209790 10329933 10450836 14380091 14783168 16777770 21178474 19941181 21483330 17903919

2376723 3125627 2809893 965469 4629368 4197924 4887192 5464453 4093658 3898248 2835317 3907317 7695122 5801080

1421393 1849788 1331615 1041573 2117535 2982167 2142830 2719520 2765281 3264325 3740968 3457406 4373407 3282028

479284332 632991963 397272774 143222320 667762350 663196505 697879630 887051618 878714268 1025531703 1201888610 1254431537 1553752429 1189989118

10510626 13775671 8693069 3168647 14839158 14527857 15338028 19844544 18876826 20676018 24013791 23848498 29178452 23704999

September 2233273 October 2799954

November 3394397 December January February 2916607 3226342 2572419

Total

28106244

8383592

8950012223

2722956934 184308793

56687391

36489836 11672969157 240996184

Table 4.2 Import of Ceramic Tiles to India for the period Jan 2011 to Feb 2012

45

4.4.2 Export of ceramic Tiles from India for the period January to December 2011

Quantity (Box,CTN,Kgs,Nos, Month Pcs,Set,Sqm) Vitrified Tiles Glazed Tiles Vitrified Tiles

Value Rs.

USD_Value

Total

Glazed Tiles

Vitrified Tiles

Glazed Tiles

Quantiy

Value (Rs.)

USD_Value

January February

47729

1257600 225402

23102361

138737848 22176625

498974

2996500 492265

1305329 225402

161840209 22176625

3495474 492265

March

50675

1825349

595845575

6048942742 1331491

135171900 1876024

6644788317 136503391

April

39054

1741254

2116000

19402000

47772

437902

1780308

21518000

485674

May

186086

2108975

63174767

250930031

1430917

5683580

2295061

314104798

7114497

June

341154

2184940

36577632

274385216

815556

6117838

2526094

310962848

6933394

September 4644

724

2616768

380618

57197

8320

5368

2997386

65517

October

5784

30595

1758566

6571589

36036

134667

36379

8330155

170703

November 24329

1537881

12841756

227956176

260748

4628553

1562210

240797932

4889301

December

34367

1662626

23095534

253649536

446290

4901453

1696993

276745070

5347743

Total

733822

12575346

761128959

7243132381 4924981

160572978 13309168 8004261340 165497959

Table 4.3 Export of ceramic Tiles from India for the period January to December 2011

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4.4.3 Top 10 Importing and Exporting Countries

Top 10 Exporting Countries (2010)

Top 10 Importing Countries (2010)

S.No. 1 2 3 4 5 6 7

Country CHINA ITALY SPAIN TURKEY BRAZIL IRAN MEXICO

Tiles(m) 705 289 248 84 57 54 52

S.No. 1 2 3 4 5 6 7

Country USA SAUDI ARABIA FRANCE GERMANY SOUTH KOREA IRAQ UAE GREAT

Tiles(m) 130 129 103 80 59 57 48

8 9 10

POLAND UAE THAILAND

42 32 32

8 9 10

BRITAIN ISRAEL RUSSIA

43 39 38

Table 4.4 Top 10 Importing and Exporting Countries

47

4.4.4 Top 10 Manufacturing and Consumption Countries

Top 10 Consumption Countries (2010)

Top 10 Manufacturing Countries (2010)

S.No. 1 2 3 4 5 6 7 8 9 10

Country CHINA BRAZIL INDIA IRAN VIETNAM INDONESIA EGYPT USA SAUDI ARABIA MEXICO

Tiles(m) 3500 700 557 335 330 277 200 186 182 168

S.No. 1 2 3 4 5 6 7 8 9 10

Country CHINA BRAZIL INDIA IRAN ITALY VIETNAM SPAIN INDONESIA TURKEY EGYPT

Tiles(m) 4200 753 550 400 387 375 366 287 245 220

Table 4.5 Top 10 Manufacturing and Consumption Countries

48

4.4.5 Top 10 Countries with Highest Per Capita Consumption (2010)

S.No. 1 2 3 4 5 6 7 8 9 10

Country UAE SAUDI ARABIA IRAN VIETNAM BRAZIL SPAIN MALAYSIA CHINA EGYPT ITALY

Tiles(m) 12.1 6.71 4.4 3.76 3.64 3.14 2.82 2.61 2.45 2.35

Table 4.6 Top 10 Countries with Highest Per Capita Consumption (2010)

INDIA is placed at 30th position with a per capita consumption 0.46.

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C H A PTE R 5 D A TA A N A LYS I S AND I N TE R PR E TA TI O N

50

5.1 HOW MANY SITES ARE UNDER CONSTRUCTION?

Answer No. of Respondents

1 2 3

50 26 24

Table 5.1 Analysis - How Many Sites Are Under Construction

Figure 5.1 Analysis - How Many Sites Are Under Construction Interpretation Out of 100 samples surveyed 50 builders are constructing only one site, 26 builders are constructing two sites simultaneously and rest 24 are constructing three sites simultaneously. More number of builders are trying to concentrate on single site at a time, may be to maintain good quality work by focusing on one site.
51

5.2 DIVIDE TOTAL NUMBER OF SITES AMONG FOLLOWING ATTRIBUTES.

Answer

No. of Respondents

Residential Commercial Both

57 33 10

Table 5.2 Analysis - Divide Total Number Of Sites Among Following Attributes.

Figure 5.2 Analysis - Divide Total Number Of Sites Among Following Attributes.

Interpretation As we review from the graph that 57% of builders are constructing only residential sites, 33% are constructing only commercial sites and rest 10% are constructing both. This type of ratio is due to current market demand and preferences of the customers.

52

5.3 DO YOU USE DIGITAL VITRIFIED TILES IN YOUR CONSTRUCTION?

Answer

No. of Respondents

Yes No

72 28

Table 5.3 Analysis - Do You Use Digital Vitrified Tiles In Your Construction?

Figure 5.3 Analysis - Do You Use Digital Vitrified Tiles In Your Construction?

Interpretation

After surveying 100 builders 72% of them replied positively towards usage of Digital vitrified tiles at their construction sites. This output was seen due several advantages of Digital Vitrified tiles such as more strength and availability of more design.
53

5.4 REASONS FOR NOT USING DIGITAL VITRIFIED TILES IN YOUR SITES. Answer Quality price preference demand of consumer market scenario No. of Responses 8 24 11 9 10

Table 5.4 Analysis - Reasons for Not Using Digital Vitrified Tiles in Your Sites

Figure 5.4 Analysis - Reasons for Not Using Digital Vitrified Tiles in Your Sites Interpretation

Out of 28 builders who were not using Digital Vitrified tiles at their site, 46% of the responses given by them were for the price as the most effective factor. Price of the Digital Vitrified tiles is higher than Vitrified tiles and to save construction cost they dont use.

54

5.5 ARE YOU PLANNING TO USE DIGITAL VITRIFIED TILES IN FUTURE?

Answer

No. of Respondents

Yes No

18 10

Table 5.5 Analysis - Are You Planning To Use Digital Vitrified Tiles In Future?

Figure 5.5 Analysis - Are You Planning To Use Digital Vitrified Tiles In Future? Interpretation

Out of 28% builders who are not using Digital Vitrified tiles right now, 65% of them are planning to use in future. The reason is more number of customers prefers Digital Vitrified tiles due to availability of more designs in this type than others types of tiles.

55

5.6 REASONS FOR USING DIGITAL VITRIFIED TILES. Answer No. of Responses 55 31 33 45 23

Quality price preference demand of consumer market scenario

Table 5.6 Analysis - Reasons for Using Digital Vitrified Tiles

Figure 5.6 Analysis - Reasons for Using Digital Vitrified Tiles Interpretation 72% builders, who are using Digital Vitrified tiles at their construction site, gave 55 responses to quality as the main factor of consideration and secondly they considered the demand of the customers. The one who takes care of good quality work and want an attractive design in their construction work prefers the Digital Vitrified tiles more.
56

5.7 CURRENT MARKET SUPPLIERS OF DIGITAL VITRIFIED TILES. Answer Asian Bajaj Euro Johnson Kajaria RAK Regent Somany Varmora No. of Responses 32 16 10 8 46 28 18 48 54

Table 5.7 Analysis - Current Market Suppliers of Digital Vitrified Tiles

Figure 5.7 Analysis - Current Market Suppliers of Digital Vitrified Tiles Interpretation When 100 builders are surveyed about the awareness of the name of the company who sells Digital Vitrified tiles, 21% of them are aware about Varmora, 18% about Somany and 18% about Kajaria. Awareness of these companies is due to their national reach and their continuous innovations in terms of designs available for tiles.
57

5.8 WHICH COMPANYS DIGITAL VITRIFIED TILES YOU PREFER TO USE IN FUTURE? Answer Asian Bajaj Euro Kajaria RAK Regent Somany Varmora No. of Responses 12 2 6 16 10 8 20 26

Table 5.8 Analysis - Which Companys Digital Vitrified Tiles You Prefer to Use In Future

Figure 5.8 Analysis - Which Companys Digital Vitrified Tiles You Prefer to Use In Future Interpretation About 26% builders would use Digital Vitrified tiles of Varmora at their construction site due to trust in that company regarding quality. Secondly they would prefer Somany due to its brand image as a leading manufacturer of ceramic tiles in India since several years.
58

5.9 WHICH SIZES DO YOU PREFER TO USE?

Answer

No. of Respondents

605 x 605 MM 925 x 925 MM 400 x 900 MM 302.5 x 605MM

30 6 10 54

Table 5.9 Analysis - Which Sizes Do You Prefer to Use

Figure 5.9 Analysis - Which Sizes Do You Prefer to Use Interpretation

There are many sizes available in tiles but 54% of the builder prefered 302.5 x 605 MM as it is considered as the standard size in the market. But when site is large in area 605 x 605 MM is used, so 30% builders preferd that size.

59

5.10 DO YOU USE ANY PRODUCT OF ASIAN GRANITO INDIA LIMITED?

Answer

No. of Respondents

Yes No

60 40

Table 5.10 Analysis - Do You Use Any Product of Asian Granito India Limited

Figure 5.10 Analysis - Do You Use Any Product of Asian Granito India Limited

Interpretation Only 60% of the 100 builders surveyed used one of the several products of the Asian Granito India Limited.

60

5.11 YOUR EXPECTATION FROM ASIAN GRANITOS PRODUCTS.

Answer

No. of Respondents

Good quality Price Availability Design

36 14 8 42

Table 5.11 Analysis - Your Expectation from Asian Granitos Products

Figure 5.11 Analysis - Your Expectation from Asian Granitos Products Interpretation

42% of the builders expects more variety of design from Asian Granito and 36% of them wants good quality tiles. Price and availibility is almost accoring to the current prefernces of the customers.

61

5.12 FROM WHICH SOURCES YOU PREFER TO PURCHASE ASIAN TILES?

Answer

No. of Respondents

Company showroom Distributors

80 20

Table 5.12 Analysis - From Which Sources You Prefer To Purchase Asian Tiles

Figure 5.12 Analysis - From Which Sources You Prefer To Purchase Asian Tiles

Interpretation

Out of 100 builders, 80 of them preferred to buy product from the company showroom due to difference in price at distributors shop and company showroom. Price would be slightly high at distributors shop and builders always buy in bulk so it makes much difference.

62

5.13 AWARENESS ABOUT DIFFERENT SALES PROMOTIONAL ACTIVITIES OF ASIAN TILES

Answer

No. of Responses

Price discount Credit facility Free trips Free samples Advertisement Coupons

51 40 12 32 60 14

Table 5.13 Analysis - Awareness About Different Sales Promotional Activities of Asian Tiles

Figure 5.13 Analysis - Awareness About Different Sales Promotional Activities of Asian Tiles Interpretation 60% Builders are aware of the advertisement of the company as the company gives advertise in local news papers and on hoardings and 51% builders were aware of the discount offered at the company showroom. Due to stiff competition in the market, the company needs to enhance their other promotional activities to attract more customers.

63

5.14 RANK DIFFERENT ATTRIBUTES OF ASIAN TILES. 1 Quality Availability Discount Brand Image Packaging 42 30 18 2 28 14 12 3 20 18 24 4 8 28 20 5 2 10 26

6 4

30 16

24 14

20 24

20 42

Table 5.14 Analysis - Rank Different Attributes Of Asian Tiles

Figure 5.14 Analysis - Rank Different Attributes Of Asian Tiles

Interpretation

More weight age was given to quality by most of the builders while rating the Asian Granitos products. Packaging and brand image were ranked least so the company need to take care of it.

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C H A PTE R 6 KEY FINDINGS

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During the project I found that there was huge brand image of Varmora and Somany and upto some extent Kajaria among the customers as far as ceramic industry is concern especially in Ahmedabad region. The customers of Varmora ceramic tiles were loyal to the company. Customers were using Varmora ceramic tiles in there construction even though its of high price because of its quality. The awareness level of Asian Granitos products in builders is around 60%. Kajaria and Somany ceramic tiles have very strong dealers network. Builders preference for purchasing Digital Vitrified Tiles is mainly based on quality, availability, delivery and consumer demand. Customers of Somany and Varmora ceramic tiles were not satisfied with the credit facility and discount offered to them. Credit facility and Discount offering of Asian Granito was placed in front of other companies in the minds of the consumers. Builders who construct Flats and commercial buildings are mainly interested in purchasing Vitrified tiles than the Digital Vitrified tiles due to price factor. Builders who construct Bungalows are mainly interested in purchasing Digital Vitrified tiles due to its good quality and availability of several variants, for them price does not matter a lot. When question came to builders ratings towards Asian Vitrified tiles rating most of the respondents complaining about packaging and brand image.

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C H A PTE R 7 SU G G E ST I O N S

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The Tiles market has reached Maturity stage in India, large number of companies having a variety of product range has entered the market, and thus there is one way for Asian Granito to sustain their tiles business in the market by delivering outstanding satisfaction to their customers. This can be done as follows:

Supply should be regular to all the outlets and not just in the outlets which lie on the easily accessible routes. Start giving products to several more distributors and give reasonable margin to them as compared to competitors; this motivates them to promote companys products. Improve delivery schedule to provide products on time for the Builders who claimed that Asian tiles is not available to them on time. Incentives & schemes should be given to the distributors and some scrutiny should be follow to check the scheme get being communicated properly by distributors or sales person. Discount coupons should be given to the consumers in order to buy more Tiles. For regular customers arrange free holiday trips to increase their loyalty towards the company. Continuous innovation in design is necessary as 42% of the builders surveyed expect it from the company and also competitors are penetrating the market through it. Online buying and booking facility should be started to increase sales as it is convenience to many customers nowadays. Asian Granito should adopt flexible credit facility and should improve its lead time. Brand awareness of the Asian Granito is less than that of other competitors, so the company needs to focus on several activities which could enhance it. Around 80% of the customers preferred two sizes i.e. 302.5 x 605 MM and 605 x 605 MM, so the company should put more attention on producing more designs in these sizes.

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C H A PTE R 8 C O N C L U SI O N

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The project was conducted with primary objectives, to know brand awareness of Asian Granito India Limited as far as Digital Vitrified tiles is concern and to analyze the competition with other industries in terms of quality, price, customer preference, etc. The sample area of research was Ahmedabad. The survey was conducted through questionnaire on selected 100 respondents. After conducting research following can be concluded:

Asain Granito has very strong brand awareness in the mind of customers in terms of credit facility and discount offered. When competitors are concerned Varmora, Somany and Kajaria are in front of Asian in terms of quality and design offered to customers. The brand image of those three companies in the mind of customers is due to it consistency in providing quality product.

Customers are satisfied with the availability and the price of the products. Customers are also satisfied with the location and environment of the showroom. However designs are less in comparison to other companies of tiles but still some customers are ready to buy it.

During the research I found that customers are not satisfied with the current design offerings provided by company. Customers want more discounts on bulk purchase, flexible credit facility and more designs with continuous innovation. However quality of Asian Granito is good but still they need focus on it as competitors are providing more then what Asian Granito is offering to customers.

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C H A PTE R 9 BIBLIOGRAPHY

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9.1 Articles Sharma, K. (2006, Oct 8). Spruce up the floor - Economic Times. Retrieved July 26, 2012, from http://articles.economictimes.indiatimes.com/2006-10-08/personal-

finance/27450598_1_tiles-floors-and-walls-sq-ft Varmora, B. (2012, June 5). Digital Tiles- The latest Trendsetter | Industry Insight. Retrieved July 26, 2012, from http://www.thetilesofindia.com/Industry-

Insight/floored-by-ink.html

9.2 Websites http://www.asiangranito.com http://www.marketresearch.com http://www.tiles.com http://www.infotile.com http://www.ceramicsasia.net/En/main/new.asp?cid=5 http://www.icctas.com/ceramic-tiles-industry-statistics.htm

9.3 Books Philip, K. (2009). Marketing Management. Delhi: Pearson Education Inc. Donald, C. (2010). Business Research Methods. Delhi: McGraw-Hill Companies Incorporated.

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C H A PTE R 1 0 ANNEXURE

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10.1 QUESTIONNAIRE Dear Sir/Madam I student of GLSICT is required to understand a market study on DIGITAL VITRIFIED TILES. As per the university guidelines, I assure you that information provided by you would be used only for academic purpose and kept confidential. (I). NAME OF THE SITE: _________________________________ (II). NAME OF THE BUILDER: ____________________________ (III). SITE AREA: _________________________________________ (1). HOW MANY SITES ARE UNDER CONSTRUCTION? ________________

(2).

DIVIDE THE TOTAL NUMBER OF SITES AMONG FOLLOWING ATTRIBUTES IN PERCENTAGE OF 100.

RESIDENTIAL_____COMMERCIAL_____

BOTH_____

(3).

DO YOU USE DIGITAL VITRIFIED TILES IN YOUR CONSTRUCTION ?

YES (IF NO CONTINUE, IF YES GO TO QUESTION 6)

NO

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(4).

REASONS FOR NOT USING DIGITAL VITRIFIED TILES IN YOUR SITE. (YOU CAN TICK MULTIPLE BOXS)

QUALITY

PRICE

PREFERENCES

DEMAND OF CONSUMER

MARKET SCENARIO

(5).

ARE YOU PLANNING TO USE DIGITAL VITRIFIED TILES IN FUTURE? YES NO

(6).

REASONS OF USING DIGITAL VITRIFIED TILES. (YOU CAN TICK MULTIPLE BOXS)

QUALITY

PRICE

PREFERENCES

DEMAND OF CONSUMER

MARKET SCENARIO

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(7).

CURRENT MARKET SUPPLIERS OF DIGITAL VITRIFIED TILES. 1. ___________________________________________ 2. ___________________________________________ 3. ___________________________________________

(8).

WHICH COMPANYS DIGITAL VITRIFIED TILES YOU PREFER TO USE IN THE FUTURE? NAME: _________________________________________________________ (GIVE REASON IF POSSIBLE): ______________________________ _________________________________________________________

(9).

WHICH SIZES DO YOU PREFER TO USE?

605 X 605 MM

925 X 925 MM

400 X 900 MM

302.5 X 605 MM

(10).

DO YOU USE ANY PRODUCT OF ASIAN GRANITO INDIA LIMITED?

YES

NO

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(11).

YOUR EXPECTATION FROM ASIAN GRANITOS PRODUCTS.

GOOD QUALITY

PRICE

AVAILIBILITY

DESIGN

(12).

FROM WHICH SOURCES YOU PREFER TO PURCHASE ASIAN TILES?

COMPANY SHOWROOM

DISTRIBUTORS

(13).

AWARENESS ABOUT DIFFERENT SALES PROMOTIONAL ACTIVITIES OF ASIAN TILES. (YOU CAN TICK MULTIPLE BOXS)

PRICE DISCOUNT

FREE SAMPLES

CREDIT FACILITY

ADVERTISEMENT

FREE TRIPS

COUPONS

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(14).

RANK DIFFERENT ATTRIBUTES OF ASIAN TILES.

_____QUALITY

_____BRAND IMAGE

____AVAILABILITY

_____PACKAGING

_____DISCOUNT

THANK YOU

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