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KAJARIA CERAMICS LTD.

SUMMER INTERNSHIP
PROJECT
MARKETING
MARKETING PATTERN
Kajaria has a manufacturing unit at Sikandrabad, Distt. Bulandshahar [U.P.] and Gailpur, Distt. Alwar
(Raj.). It manufactures Floor Tile at Sikandrabad Plant & Wall Tiles at Gailpur Plant. It sell our goods
through dealers and also directly to Builders, Contractors and others. The prices are charged as per price
lists applicable for the particular area. On all the Clearances the Excise Duty is being paid under Section
4A on M.R.P. less Abatement.
The goods are delivering at the Factory gate to the Buyer/ on behalf of the Buyer to the transporter. The
freight at actual is paid by the Dealer/Buyer Directly to the transporter at destination. In few cases, the
freight at actual is paid by us which is show separately in the Invoice and realized from the buyer/dealer.

PRODUCTION AND OPERATION


Kajaria Ceramics is the largest manufacturer of ceramics / vitrified tiles in India. It has an annual capacity
of 30.60 million sq. mtrs.
Distributed across three plants as follows:MSM(Million Square Metre) Plant Ceramic Tiles Vitrified Tiles Total
Sikandrabad (UP) 3.20 5.00 8.20
Gailpur (Rajasthan) 14.10 6.00 20.10
Morbi (Gujarat)* 2.30 0.00 2.30 19.60 11.00 30.60*
Kajaria acquired 51% stake in Morbi Ceramic private Limited.

INTRODUCTION ABOUT THE ORGANIZATION


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.
Kajaria Ceramics is the NOW largest manufacturers of ceramic/vitrified tiles in India. It has an annual
capacity of 30.60 mn. sq. meters, distributed across three plants-Sikandrabad in Uttar Pradesh, Gailpur in
Rajasthan and Morbi in Gujarat.

OBJECTIVES
GROWTH
PROFITABILITY
CUSTOMER FOCUS
PEOPLE ORIENTATION
IMAGE
TECHNOLOGY FINANCIAL PERFORMANCE

Financial analysis
Kajaria registered another year of improved performance where the profit growth was significantly larger
than business growth, strengthening shareholder value.

Profit Ability 2013-14


Moving towards producing value added / bigger size tile, generating Higher realization per square meter
Seeded new verticals (wooden flooring solutions and bath ware) around a trading model that leveraged its
distribution and brand for a pan-India presence and translated revenues into bottom line Grew revenue
29%, profit after tax 69% and ROE (Return on equity) and ROCE(Return on capital employed) climbed
from 20% and 19% in 2009-10 to 29% and 25% in 2010-11 respectively. 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 for its
Sikandrabad & Gailpur plant. These plants also fulfill international norms.
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, we come up with
exciting new concepts that voice new emotions and keep up with current trends.

ORGANIZATION STRUCUTURE
Mr. Ashok Kajaria (Chairman & Managing Director)
Mr. Chetan Kajaria (Joint Managing Director)
Mr. Rishi Kajaria (Joint Managing 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. B.K.Sinha (Director- Technical)
Mr. R.C. Rawat Sr. VP (Accounts & Taxation)& Company Secretary
Mr. Sanjeev Agarwal VP (Finance & Corporate Strategy) Kajaria also take the help of the Electronic
media for their marketing purpose. Apart from this dealership certificate to encourage them, display
hoardings, yearly gifts Are also plays very crucial role for the marketing & sales.

DEALERS AND SUB DEALERS SHOWROOMS


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 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.

INTERNATIONAL MARKET
KAJARIA Ceramics exports to more than 20 countries round the Globe. The International Marketing
operations are organized by a specialist export division that manages a network of international agents
and distributors supported by Kajaria ceramics limited exclusive office/showroom in UAE. Now in
international markets kajaria enjoy a similar brand Recall as that of Domestic.

RECOMMENDATION & SUGGESTION


The Tiles industry is huge and has huge potential for growth. The company should try and revamp its
operations, they should lower the price. It can be done by increase production, achieve economies of scale
and then increase market penetration.
The product is doing reasonably well in most of the market. So they should promote the product
accordingly e.g. free sampling, discounts, prominent Hoardings & so more. This will help in increasing
the sales volume.
Quality Improvement.
Increase in frequency of visits of Marketing Executives.
Reduction in Delivery Time.
Prices needed to have a check.
Free Gifts should be provided by the companies.
Availability of products should be improved.
Incentives for distributors should be improved.

SWOT ANALYSIS
STRENGHTS
Low cost Producer of quality tiles. It has a Flexible manufacturing set-up for longer uniformity of product
and comprising to international standards fully adaptation, absorption of technology.

WEAKNESS
The ceramic tiles industry is dependent on the growth in the construction and housing sector. In the
Budget 02-03, tiles have been removed from the SSI category and accordingly all manufacturers of tiles
come in the excise net.
To some extent they have arrived at the competitive level to the organized sector. But due to their

negligible overheads, tax evasion and copies of designs of organized sector that retains the potential to
under cut the organized sector. There is a stiff competition within the organized sector which is putting
pressure on the price also.

OPPORTUNITIES
Company has a Strong distribution network across the country and overseas market with focus on Retail
marketing to build and establish exclusive showrooms across the country and overseas markets. Using
innovative display and communicating to customers through
Exhibitions and trade shows for consistent brand building efforts. Nurturing and cultivating highly skilled
human work force by motivating and rewarding them.

THREATS
The Company is continuously on the path to over come any threats arising from imports competition
amongst the tile manufacturers by making the product more competitive in terms of price and quality,
which has been possible by reducing the input costs and providing more value added items with dynamic
range of designs and colors