CHAPTER - 1: INTRODUCTION

1.1 History of the ceramic tiles

Rumors have it that the first clay tiles were produced seven to eight thousand years ago in the
area now known as the Holy Land. Many companies 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 company 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 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, and
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 company 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.

1.2 Background
Apart from their decorative looks, Ceramic Tiles are primarily hygiene products and that is
how company broad spectrum of consumers views the product. This is fairly evident from its
varied usage from bathrooms and kitchens in average Indian households to medical centers,
labs, milk booths, schools, public conveniences, shopping malls and numerous other centers;
which dot company day to day life. A ceramic tile is basically a "utility product" and that
remains company promotional slogan. Popular housing projects are increasingly switching
over to Ceramic Tiles moving away from the traditional use mosaic and even granite or
marble, owing to several factors viz. ease in laying ability, versatility, low price and hygiene.
Nevertheless, this decorative aspect of a Ceramic Tiles has forever been in the forefront.
Heavy churning out of bolder and colorful designs by the industry are testament to the fact
that most households regard a ceramic tile as an "adornment" for an otherwise "drab look" of
their age-old floorings or an unfurnished wall.

1.3 Overall picture of the Industry

Ceramic tiles as a product segment have grown to a sizeable chunk today at 340 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 ceramic tiles sector has been clocking a robust growth of 12-15%
consistently over the last few years. Today, India figures in the top 5 countries in the world
manufacturing ceramic tiles.
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 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 and
surface effects. They cater to tastes as varied from rustics to contemporary marble designs in
super glossy mirror finishes.
3

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 0.30 square meters per person in
comparison to over 2 square meters per person for like countries like China, Brazil and
Malaysia.

1.4

Ceramic tiles industry in India

Introduction
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. In the early
days the tiles were hand made, hand formed and hand-painted. But today the ceramic tile is
not hand made or hand painted for most of the part. In fact in the modern house throughout
use ceramic tiles for their bathrooms and kitchens and in every vital area of the premise. Apart
from decorative look ceramic tiles are primarily hygiene products and that is evident from its
usage ranging from bathrooms and kitchens in average Indian households to medical centers,
labs, milk booths, schools, public conveniences etc. A ceramic tile is basically a utility
product and popular housing projects are increasingly switching over to Ceramic Tiles from
the traditional mosaic and even granite or marble, owing to several factors viz. ease in laying
ability, versatility, low price and most importantly hygiene. The main product segments are
the Wall tiles, Floor tiles, Vitrified tiles and Porcelain tileSegments. The market shares are 35
percent, 53 percent and 12 percent respectively for wall,Floor & Vitrified/Porcelain tiles.
In India, Ceramic tile industry emerged in the late 1950s. Ceramic Tile Industry can be
classified into three categories namely wall tile segment, floor tile segment and vitrified and
porcelain tile segment. In India the floor tiles segment is growing at a faster rate. The market
for the wall tiles is rising at a relatively slower pace and this has resulted in high excess
4

capacity in the wall tile segment. The entry of two new product categories Vitrified tiles and
Porcelain tiles has increased the size of the market considerably. It is expected that these
products will gradually take away the market from the conventional ceramic tiles (wall and
floor). As far as manufacturing of ceramic tiles is concerned, both the organized and
unorganized sector s play a very important role in India.
The per capita consumption of ceramic tiles in India is very less as compared to the other
countries in the world. It is as low as 0.30 sq.mtr per annum. This low per capita consumption
shows the likely demand that is going to arise in the future in India as more and more
development takes place. Ceramic Tiles are furnishing material apart from being utility or
hygiene products. Despite an overall slowdown of the economy this sector continues to grow
at a healthy 12 percent per annum. Growth of the unorganized sector accounted for 44 percent
of the total production and the revenue earnings from the organized sector accounted to over
Rs150 core. India ranks 7th in terms of production in the world and the market share of India
have risen from 1.7 percent to 2.7 percent in terms of ceramic tile production in 2007-08.
Graph:

(Source: www. Krchoksey.com, kisan ratilal choksey share and security private ltd)

Industry Profile
Ceramic tiles as a product segment have grown to 3.8 million tons production per annum. The
potential seems to be great particularly in view of the boom in the housing sector, retail sector
and IT and BPO sectors. The ceramic tile sector has been clocking a robust growth of 12-15
percent consistently over the last few years. The investment in the ceramic tile industry, in the
last five years is approximately Rs2000 crores. This industry provides employment of 550000
people, 50000 of whom are directly employed. The potential is huge considering the per capita
consumption of ceramic tiles in India. Currently it is at 0.5 sq.m per person in comparison to
over 2 for like countries like China, Brazil and Malaysia. Some of the key statistics pertaining
to the industry are summarized below:
Table
WORLD PRODUCTION

6400 MILLION SQM

INDIA'S SHARE

200 MILLION SQM

WORLD RANKING
PER CAPITA CONSUMPTION

7
0.15 SQM

GLOBLE INDUSTRY GROWTH RATE

6%

GROWTH RATE ( INDIAN DOMESTIC MARKET )

12%

ORGANISED INDUSTRY TURNOVER

RS 22.50 BILLION

WALL TILES SHARE

40%

FLOOR TILES SHARE

46%

VITRIFIED TILES & PORCELAIN TILES

14%

INVESTMENT IN LAST FIVE YEAR

RS 20. BILLION

ORANISED SECTOR

45%

SHARE OF PRODUCTION

56%

NO. OF. UNITS

15%

UNORGANISED SECTOR

55%

SHARE OF PRODUCTION:

44%

NO OF UNITS

200(APPROX)

WALL TILE SFARE

57%

FLOOR TILE SHARE

35%

VITRIFIED TILES & PORCELAIN TILES

8%

(Source: kiran ratilal choksey Mumbai)

Industry Highlights

Ceramic Tiles today have become an integral part of home improvement. It can make a
huge difference to the way company 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. 2000 crores and production
during 2007-08 stood at approx. 340 million sq mts.

The Indian tile industry is divided into organized and unorganized sector.

The organized sector comprises of approximately 16 players. The current size of the
organized sector is about Rs 3000 crores.

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

Revenue earning industry - excise mops up over Rs. 350 crores annually from the
organized sector itself.

Indian ranks in the top 5 list of countries in terms of tile production in the world.

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
0.30 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. This 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%). (Company: Compiled using information from Corporate
Catalyst India, ASCER and other associations.)

Potential for the Ceramic Industry in India:

Like developed markets the financial institutions (both foreign and domestic) are beginning to
show interest in the sector. Various foreign Real Estate and Finance companies like GE
Commercial Finance, Tishman Speyer, Ascendas and Farallon Capital have entered the Indian
market. The Ceramic Tile Industry drives its demand from the Real Estate and Construction
sector. Ceramic Tiles Export Region wise Weekender.
8

Ceramic tiles find its maximum usage in residential and commercial buildings and are also
finding acceptance in other construction projects as well like airports, bus terminals etc. as
they are found more suitable at places where there is more human traffic. In India the
construction sector is expected to do well in future mainly due to fiscal incentives given to
infrastructure development.
India is the prime destination for the IT services outs company. In the coming five years at
least 55 million sq.mt of extra office space must be completed in the premium office space
alone. Investment commission report states that the retail sales were $206 billion in 2004 and
is expected to grow three-fold in the next 10 years from $206 billion to about $660 billion by
2015. Organized retail was only $6.4 billion and is expected to grow rapidly to reach $100
billion by 2015. Further India is expected to be among the top 5 retail markets in the world in
10 years. The Ceramic tiles particularly the vitrified tiles are finding increasing usage in both
these sectors and the sector would benefit from an upsurge in these areas as well.
Indian economy is poised to grow at 7-8 percent and with growing incomes and urbanization,
demand for houses is slated for growth. The increasing focus on rural areas, by government
and corporate, the demand for housing would also increase in rural areas. The ceramic
industry will also benefit from the above developments. Increasing demand is just one part of
the story the availability of Finance is the other part. With the availability of loans at low
interest rate and tax incentives have enabled the people to buy houses and build up their own
establishment. With the increasing competition amongst both Banks and Housing Finance
Companies the people are avail of getting better financing options and that too at a cheaper
rate. This would further increase the demand for tiles. Another important driver is the
distribution network of a ceramic tile manufacturing company. The distribution network is
critical to success in this industry.

Distribution Chain in Tile Industry:

Direct
Pr

Where we stand and what we must do?

As a foreign exchange earner or a global player, Indian Tile industry has captured the attention
of the world in the ceramic tiles segment. India is projected to figure in the top 3 countries
manufacturing ceramic tiles by 2010. This however is subject to policies favorable for the tile
industry to complete with international players on an even ground.
To compete internationally, company plants must be geared up to large units currently
operating in China and Turkey is driven by economies of scale. These will also help us in
lowering company cost of production significantly. Also, infrastructural support is a key factor
that determines the speed of growth. Better infrastructure will bring in better growth in terms
of consistency and sustenance. Freight, supply of power and gas remains the key cost-related
issues impacting the industry. Availability, consistent supply and reasonable rates are
extremely important for the growth of the ceramic tile industry.
Also, the prevailing anomalies pertaining to Basic Customs Duty on import of ceramic tiles
from China and raw materials imported from abroad need to be corrected to prevent dumping
of tiles from China. Rural thrust should be enhanced by favorable excise duty and MRP
structure.
10

1.5

Global scenario of ceramic tiles industry

Introduction
30 major tile manufacturing companies cover 95.8 percent of the total world production of
ceramic tiles in 2005. Asia contributes 53 percent to the total world production in 2005, 54
percent in 2004 and 50 percent in 2003 respectively. China is the largest producer and
contributes almost 33 percent of the world production in 2004. This is followed by Thailand,
Poland, South Africa and Russia which are growing at almost 20 percent CAGR between
2001- 05 whereas countries like Japan, Italy have shown negative growth over the period.
Asia tops the consumption chart followed by EU and South America. China dominates the
consumption list and its consumption is almost company times that of Brazil. Germany,
France features in the top 10 list of consuming countries but they are not there in the top 10
producing nations. Going further USA, Germany, France and even India consume more than
they produce and they are meeting their demands through imports. The 30 major tiles
manufacturing countries are also the biggest consumers and consume 88.20 percent of the
total world consumption of ceramic tiles. Europe is the highest exporting region and exports
almost 50 percent of its production to the other regions.
Graph

(Source: www. Krchoksey.com, kisan ratilal choksey share and security private ltd, Mumbai
2007-08)

11

Whereas Asia consumes most of its production in its own region and has little left to export.
Italy, Spain and China are the leading exporters and USA, Germany and France are the
leading importers. China which was the 3rd largest exporter in 2004 has at present become the
2end largest exporter. Exports of the 15 major exporting countries represent 23.9 percent
world consumption and exports from Italy and Spain represent 42.6 percent of the worlds
exports and 11.2 percent of world consumption.

The Global ceramic tiles industry has facts like:

1) Countries like Malaysia, Thailand, Indonesia, Shri-lanka and Vietnam are setting up
their own plants.
2) China is emerging as the leading producer.
3) Producers of through Spain and Italy beneficial because of the lower transportation
cost for the exports to the countries like U.S.A. and GERMANY.
4) In India per capital consumption is No.1 sum while comparison it is 3 to 5 sqm in
China and Europe.
5) The top end of the global export is dominated by Italy and Spain.
6) The world top producing countries for the ceramic tiles are Spain and Italy.
7) Being a large continent with many as 3 countries marketing product and services in
African countries is indeed a challenging task. However for a successful marketing
effort it is an imperative to identify and association with reliable and efficient business
partners in key African countries. A good starting point is via an organization that
especially in marketing and business. Promotional in African market. Another tool to
search for business association in African countries is the internet.

Conclusion can be made over there above global information that among the various countries
Italy and Spain are the highly qualified competitors.

12

Details about the globe:

Now in details referring to the countries producing consuming and exporting well the ceramic
tiles is being discussed well. Here important is given to the Europe since Spain and Italy are
the major producers of the ceramic tiles, then America United kingdom and Germany are been
referred. Among Asian countries Japan is been referred. The republic Macedonia is newly
rising with good amenities for the development of ceramic tiles industry.

Market Trend in the World

The industrys revenue for the year 2006 was approximately $1,130,000,000. The gross profit
was 43.4% at $490,420,000. There were 230 establishments in this industry that year. Thus,
average contribution (or revenue) per establishment annually was $4,893,000.
The total import export value for the year 2006 was $2,414,472,000. There were 105 countries
that conducted foreign trade with the U.S. in 2006, 1 more than year 2005. The top trading
countries were: Italy, $969,269,000 (40.14%); Spain, $345,204,000 (14.30%); Mexico,
$279,343,000 (11.57%); Brazil, $252,174,000 (10.44%); and China, $203,993,000 (8.45%).
Their combined total represents approximately 85% of all imports and exports.
The total import value for the year 2006 was $1,918,510,000. This represents a 6.6% increase
from year 2005. The U.S. had imported industry related merchandises from 72 countries in
2006. The top importing countries were: Italy, $820,298,000 (42.76%); Spain, $275,077,000
(14.34%); Mexico, $247,449,000 (12.90%); Brazil, $190,103,000 (9.91%); and China,
$136,361,000 (7.11%). Their combined total represents approximately 87% of import from all
countries.
The total export value for the year 2006 was $48,542,000. This represents a 1.8% increase
from year 2005. The U.S. had exported industry related merchandises to 75 countries in 2006.
The top exporting countries were: Canada, $28,208,000 (58.11%); Mexico, $10,256,000
(21.13%); Japan, $1,592,000 (3.28%); Bahamas, $783,000 (1.61%); and Korea, $677,000
(1.39%). Their combined total represents approximately 86% of export to all countries.
Adding the import and subtracting the export, the total U.S. consumption value of this industry
for the year was $3,000,000,000.

13

This industry report packs 10 years of data from hundreds of reliable government and private
statistical resources. The data have been compared and verified to assure the highest research
quality. These agencies and private companies were frequently contacted to acquire the latest
information, most of which is unavailable to the general public. It is estimated that to gather
and organize the same information into an easy-to-read format in each report, an individual
researcher would spend at least a years worth of effort. The challenge is, by the time this is
accomplished, some data is most likely obsolete. Our business is dedicated to the research of
U.S. industries and their associated foreign trades. We can meet that challenge easily as our
databases are directly linked to these resources.
The U.S. manufacturing sector is expected to hit the monumental 5 trillion dollars net sales in
2006. U.S. economists have projected another 5% to 7% growth in the year 2007. To stay
ahead, this industry report is intended for you to analyze the specific U.S. industry in greater
detail. Not only does the report provide you with information on domestic production, it also
supplies you with an industrys import and export data. The report depicts what are the
products of the industry and their respective contributions. You can compare these products
with the industrys materials, parts and components list that is in the report. The foreign trade
data includes 10-years of statistics, and it is projected into year 2008. Such trade data is also
provided at the commodity level based on the HTS classification.

14

CHAPTER 2 : MARKET ANALYSIS OF CERAMIC TILE

INDUSTRY

2.1.

Product market description

Constituents of Ceramic tiles:

In general there are basically company variety / segments in the Ceramic tiles

1. Floor tiles.
2. wall tiles
3. vitrified tiles
4. porcelain tiles

For the production of all the above the contiguous are used are generally same, they are clay
send zircon and feldspar other metals {Fe (iron), Pb (plum bum), c (carbon) But in case of
vitrified tiles glass is also being used as an Ingredient. In case of porcelain tiles the ration
porcelain is higher compare to clay. The amount of porcelain present is approximately 37%.

Table 2.1
Clay

57%

Sand

28%

Feldspar

10%

Other materials

5%

15

Graph

percentage of constituents

10%

5%

Clay
Sand

28%

57%

Feldspar
Other materials

Ceramics are classified as inorganic and nonmetallic materials that are essential to our daily
lifestyle. Ceramic and materials engineers are the people who design the processes in which
these products can be made, create new types of ceramic products, and find different uses for
ceramic products in everyday life.
Ceramics are all around us. This category of materials includes things like tile, bricks, plates,
glass, and toilets. Ceramics can be found in products like watches (quartz tuning forks-the
time keeping devices in watches), snow skies (piezoelectric-ceramics that stress when a
voltage is applied to them), automobiles (sparkplugs and ceramic engine parts found in
racecars), and phone lines. They can also be found on space shuttles, appliances (enamel
coatings), and airplanes (nose cones). Depending on their method of formation, ceramics can
be dense or lightweight. Typically, they will demonstrate excellent strength and hardness
properties; however, they are often brittle in nature. Ceramics can also be formed to serve as
electrically conductive materials, objects allowing electricity to pass through their mass, or
insulators, materials preventing the flow of electricity. Some ceramics, like superconductors,
also display magnetic properties.
Ceramics are generally made by taking mixtures of clay, earthen elements, powders, and water
and shaping them into desired forms. Once the ceramic has been shaped, it is fired in a high
temperature oven known as a kiln. Often, ceramics are covered in decorative, waterproof,
paint-like substances known as glazes.

16

Ceramic Segments
Table
INDUSTRY SEGMENT

COMMON EXAMPLES

Structural clay products

Brick, sewer pipe, roofing tile, clay floor and wall tile (i.e.,
quarry tile), flue linings

White wares

Dinnerware, floor and wall tile, sanitary ware, electrical

porcelain, decorative ceramics

Refractoriness

Brick and monolithic products are used in iron and steel,

non-ferrous metals, glass, cements, ceramics, energy
conversion, petroleum, and chemicals industries

Glasses

Flat glass (windows), container glass (bottles), pressed and

blown glass (dinnerware), glass fibers (home insulation), and
advanced/specialty glass (optical fibers)

Abrasives

Natural (garnet, diamond, etc.) and synthetic (silicon carbide,

diamond, fused alumina, etc.) abrasives are used for
grinding, cutting, polishing, lapping, or pressure blasting of
materials

Cements

Used to produce concrete roads, bridges, buildings, dams,

and the like

Advanced ceramics
Structural

Wear parts, bio ceramics, cutting tools, and engine

components

Electrical

Capacitors, insulators, substrates, integrated circuit packages,

piezoelectric, magnets and superconductors

Coatings

Engine components, cutting tools, and industrial wear parts

Chemical and environmental Filters, membranes, catalysts, and catalyst supports

17

Most of the above segments can be further broken down into more specific product
classifications as seen on the table below. In 1974, the U.S. market for the ceramic industry
was estimated at $20 million. Today, the U.S. market is estimated to be over $35 billion.
Structure and Properties of Industries:
The properties of ceramic materials, like all materials, are dictated by the types of atoms
present, the types of bonding between the atoms, and the way the atoms are packed together.
This is known as the atomic scale structure. Most ceramics are made up of two or more
elements. This is called a compound. For example, alumina (Al2O3) is a compound made up
of aluminum atoms and oxygen atoms.
The atoms in ceramic materials are held together by a chemical bond. The two most common
chemical bonds for ceramic materials are covalent and ionic. For metals, the chemical bond is
called the metallic bond. The bonding of atoms together is much stronger in covalent and ionic
bonding than in metallic. That is why, generally speaking, metals are ductile and ceramics are
brittle.
Another structure that plays an important factor in the final property of a material is called
microstructure. The microstructure of a material is the structure that can be seen using a
microscope, but seldom with the naked eye. For ceramics, the microstructure can be entirely
glassy (glasses only); entirely crystalline; or a combination of crystalline and glassy. In the last
case, the glassy phase usually surrounds small crystals, bonding them together.
The atomic structure primarily affects the chemical, physical, thermal, electrical, magnetic,
and optical properties. The microstructure also can affect these properties but has its major
effect on mechanical properties and on the rate of chemical reaction. Due to ceramic materials
wide range of properties, they are used for a multitude of applications. In general, most
ceramics are:

Hard,

Wear-resistant,

Brittle,

Refractory,

Thermal insulators,

Electrical insulators,

Nonmagnetic,
18

Oxidation resistant,

Prone to thermal shock, and

Chemically stable.

Of course there are many exceptions to these generalizations. For example, borosilicate
glasses (glasses that contain silica and boron as major ingredients) and certain glass ceramics
(glasses that contain a crystalline phase) and NZP ceramics are very resistant to thermal shock
and are used in applications such as ovenware, stove tops and kiln furniture respectively. Also,
some ceramics are excellent electrical conductors and an entire commercial market is based on
the fact that certain ceramics (ferrites) are magnetic.

Various types of tiles and their characteristics:

The various types of tiles include earthenware tile, stoneware tile and porcelain tiles. Earthen
ware tiles are company for interior use, while porcelain and stoneware tile are preferred for
exterior use.
Earthware Tiles:

Porous tiles result in higher absorption of moisture

Produce the good sound of tapping.

Moisture absorption 22% or less

Usually are unglazed.

Stoneware Tiles:

Lacks clarity of the ceramic tiles.

Low moisture absorption

They are glazed and unglazed even

About 1-5% of moisture is being absorbed.

Porcelain Tiles:

Metallic sound and good clarity is there

Absorption level is about 0-1%.

They are usually glazed and unglazed.

19

Usage based classification:

Based on the use of the ceramic tiles they are being classified as wall tiles, generally used foe
the walls of the kitchen, bathrooms etc. the floor tiles used to apply them to the floor of
swimming pools, basins, bathrooms, toilets and kitchen. The latest is the trend of the vitrified
tiles, which have a glass like shine and strength compared to the marble and granite.
Wall tiles:
Ceramic wall tiles are normally less durable than tiles designed specifically for flooring. Most
wall tiles are glazes with a semi-gloss or matte surface. The glazed surface has a very low slip
resistance and become , slippery when wet therefore, glazed wall tiles is much more suited for
wall or countertop application rather than floor tiles.
Glazed ceramic tiles:
Glazed ceramic tile is comprised of two basic elements, clay and water. Various clay is mined.
Ground and blended to a fine powder, and pressed together to from the body of tile. The
pressed clay body is then dried to reduce the moisture content. Next the surface of the tile is
coated with a colored. The glaze is then permanently fused to the surface of the tiles by firing
it in kilns are approximately 2000 Fahrenheit to form the finished product.
Porcelain tiles:
Porcelain tiles are made from a blend of fine grain clays and other minerals to produce a very
dense body. Which makes it highly resistant to moisture, staining and wear? Because of these
features, porcelain tiles will withstand years of heavy foot traffic in both interior and exterior
application while maintaining its color and beauty.
Color body porcelain tiles:
This is the densest of all tiles types, color body porcelain tile has a through color and is
defined by its ⁢ 0 5% water absorption. These tiles can withstand heavy foot traffic and are
suitable for either indoor or outdoor application.
To determine the overall performance and durability of the glazed surface of ceramic tiles,
there are standardized industry tests and classification which rate tiles specifically resistance
to scratching, breaking, abrasion moisture etc.

20

Scratch hardness:
Most tiles are rated for hardness or scratched resistance using the MOHS test and rating
system the MOHS test rates tiles from 1 to 10. Ceramic tiles with a value of 5 or more is
suitable for most normally acceptable for most commercial application or heavy traffic areas.
Wear resting:
To help select suitable tiles for specific application tiles are rated the P.E.I. (porcelain Enamel
institute) scale. The tiles are evaluated for wear resistance on a scale from 1 (lowest) to 5
(highest).
1. Light traffic- recommend for residential bathrooms or other areas with light traffic and
where shoes are not frequently used.
2. Medium traffic- recommended for residential interiors, except entryways, into contact
with grave or sand
3. Medium heavy traffic recommended for all residential interior and light commercial
application. Not recommended for commercial entryway.
4. Heavy traffic- suitable for all residential interiors and most commercial application,
including shopping malls and public areas.
5. Heavy-plus traffic- all residential and commercial areas where heavy- duty ability is
needed.

Water absorption: ceramic tiles are also classified by their water absorption rate which reflects
the density of the body of the tiles there is a direct relationship to the water absorption rate and
the suitable of the various types of tiles for interior or exterior application. Tiles suitable for
exterior application must have a very low water absorption rate. Especially in climate subject
to freezing which have a moisture absorption rating of less than 5%.
Shading: like the nature products themselves will very in shading this adds to the beauty and
design of the product. When choosing a tile its best to views 2-3 tiles together to visually
determine the overall appearance of the tiles.

21

Ceramic tiles manufacturing process:

The tile manufacturing process has mainly company routes
Tunnel Bisquet and tunnel glost firing ; it is the oldest manufacturing process for the tiles.
The advantage of this process is that it cans very small size to medium size tiles. The other
processes are not geared up to handle such process.
Tunnel Bisquet and roller glost firing ;the main advantage of this route when compared to
the previous is that it can produce very large size products, which can not be made in the
tunnel route of manufacturing.
Single roller firing; this is the mossy mordent technology in the production of tiles today.
The advantages are higher are higher productivity lower fuel consumption and reduced losses.
Rolier rolier firing or double fast firing: the advantage of this technology is that tiles better
surfaces can be produced.
Figure 2.2

(Source: IFC, ceramic tiles and manufacturing sanitary ware)

22

Ceramic tiles raw material:

The majority of raw materials used by the ceramic industry are the oxides of metals. The three
metals which have been the mainstays of the industry for many years are clay, flint, and
feldspar. These are the major materials contained in what is sometimes referred to in the
industry as "classical ceramic bodies."
Clay:
Clays are hydrated aluminosilicates and are the end-product of the weathering of fields pathos
rock. The most important clay mineral is Kaolinite which has the composition AL2O3 - 2SiO2
- 2H2O. Clay is the material that gives a ceramic composition the plasticity which facilitates
the fabrication of the material into the desired form prior to heat-treating.
Flint
Flint is a form of silicon dioxide (SiO2) usually produced from quartzite, sand or rock. It is
used in a finely pulverized form as a filler to give the clay and final product the desired
properties.
Feldspar
Feldspar is a broad, generic name applied to a group of alkali-aluminosilicates. For example,
feldspars in which the alkali is potassium (K2O - Al2O3 - 6SiO2) are called "potash
feldspars," and those containing sodium (Na2O - Al2O3 - 6SiO2) are called "soda feldspars."
Most feldspar, however, are combinations of these two types. Feldspar is used and known as a
"flux" in the ceramic industry. The flux is the material which starts to melt at the lowest
temperature during the heat-treating process, thereby acting as the cementing element which
gives the ceramic body its strength.
A great many other naturally-occurring minerals and some synthetically produced chemicals
are used as raw materials by the ceramic industry. A few of the more important ones, along
with their chemical formulas, are now presented:

23

Raw Materials Listing in Ceramic tiles:

Table
Naturally Occurring (Chemical Composition)
Artifically

Produced

Clay (Al2O3 - 2SiO2 - 2H2O)

Composition)

Feldspar (K2O or Na2O - Al2O3 - 6SiO2)

Alumina (Al2O3)

Flint (SiO2)

Litharge (PbO)

Whiting (CaCO3)

Zinc Oxide (ZnO)

Magnetite (MgCO3)

Tin Oxide (SnO2)

Talc (3MgO - 4Si2 - H2O)

Barium Titanate (BaO TiO2)

(Chemical

Nepheline Syenite (K2O - 3Na2O - 4Al2O3 - 9SiO2 + Lead Zirconate (PbO ZrO2)
Feldspar)
Iron Oxide (Fe2O3)
Zircon (ZrO2 - SiO2)
Silicone Carbide (SiC)
Borax (Na2O - 2B2O3 - 10H2O)
Titanium Carbide (TiC)
Pyrophyllite (Al2O3 - 4SiO2 - H2O)
Boron Nitride (BN)
Spodumene (Li2O3 - Al2O3 - 6SiO2)
Cobalt Oxide (CoO)
Beryl (BeO - Al2O3 - 6SiO2)

24

Substitutes Of The Ceramic Tiles

The use of the tile is being from 4000 years. But today seeing to the size and designs in them we
find that lot many of innovations are being down.
Hard Cover Flooring Is Divided Into Two
1. Subdivision:
2. Processed Floor Covering:
A) agglomerated stones
B) terrazzo tiles
C) concrete paving stones

Natural floor covering

Natural stone (e.g. marble, granite)
Therefore it can be very well under stood from various options for the flooring in case of
substitution to the ceramic tiles. So in case of the various substitutes available we find that
marble, granite, terrazzo tiles. Kostas stone dholpuri stones are various highly favored in context
to the ceramic tiles.

25

Product Life Cycle:

The Product Life Cycle Is Concerned with the Sales History of a Product or product class. The
concept holds that of product sales change over times in a predictable way and product go
through a series of five distinct stages:
1) Introduction Stage
2) Growth Stage
3) Shake Out Stage
4) Maturity Stage
5) Decline Stage

But the CERAMIC TILES has undergone its introduction and growth stage, at present it is its
shake out stage this is very clear from the characteristic it is following.

1) The market growth for the industry is leveling off it can be said that the growth is
steady maintained.
2) The segment varies from few to large number. There are continuous innovation brought
about for various purposes with a proper mass to be targeted e.g. joint free tiles or anti
slip tiles according to purpose of good look and safety purpose.
3) The competitors are good in number but are getting reduced for certain laws like WTO,
hence weaker are leaving off the market and few are acquired but big giants thereby
increasing the capacity.
4) The pricing policy has been rationalized because different brand come up with newer and
newer concepts in the market to sustain the market share it is an essential step.
5) The distribution network is being made strong. The dealers, sub dealers, distribution are
raised up in their number to make the availability of the product easier and higher. These
step followed every strongly playing firm in the market. The promotion of the product
has been also enhanced by increasing or adding to the number of showrooms for proper
understanding the usage of the tiles in contrast to its substitutes.

26

Application of the ceramic tiles:

Historically, man has desired to create living spaces. Which were beautiful, durable and user
friendly? With that in mind has made ceramic tiles 4000 years.
Ceramic tiles have been valued for their beauty and durable for centuries. In the ancient
civilization of Egypt, Greece and Rome. Tiles were used as a function material and as decoration
in the houses of the most important citizen as well as public buildings such as baths and temples.
The fact that when these building are excavated the tiled floor is still intact which a testament to
the durability of ceramic tiles is. Ceramic tiles, particular floor tiles are once again at the very
height of fashion. People are choosing ceramic tiles for many reasons.
To start with hard flooring is now more popular than carpet and ceramic is the most durable of
domestic hard flooring. A tiled floor should last for many years.
Ceramic tiles are very safe, they are non-flammable and do not conduct electricity. They are
hygienic and do not attract or absorb dirt and they are very easy to clean. They are also healthy
and ideal for those with asthma or allergies as they do not harbor dust, pollen, dust mites, or
cancer- causing benzene from car fumes. Ceramic tiles are very comfortable under foot. They
have thermal insulation and soundproofing qualities. They are not cold; actually absorb and
retain heat like mini storage heaters. They are also odor. But above all ceramic tiles are
attractive. There is nothing that quite transforms a room like tiles and tiles will also add value to
company home.
Its a building material as ancient as the clay harvested from the Nile River and as futuristic as
the thermal glass used protects todays space shuttles.
Area of application
1) Esthetic value
2) Surface subjected to wear and tear
3) Under water/for flashing purpose.

27

Initially they ware only used for the flooring purpose, but gradually with the creation of
glazed ceramic tiles they are used for cladding of walls in baths, toilets and kitchen as well as in
decorative purpose. They are used in swimming pools and some water carrying bodies because
of its water resistance and durability. Not only on an average in the India household but it is
covering even the medical centers, labs, milk booths, schools. Public conveniences and countless
other centers surrounding us.
The presently devised porcelain tiles and varied tiles just picked up the one third of the ceramic
tiles market. It has really pushed back the mosaic tiles flooring.
Housing sector is connected to the overall growth in the economy. It has as witness significant
growth during the last few years due to decline interest cost, steady real estate prices. Increased
urbanization and fiscal incentive growth provided for tax purpose. The housing sector is set to
grow at an annual rate of 50% for the next 4 years.
Due to decline in demand for funds from industry side. The retail finance boom in the banking
sector, the price war to acquire critical mass have helped more people to decline in demand for
funds from industry side, the retail finance boom in the banking sector and the price war to
acquire critical mass have helped more people to afford home loans. The rising salaries in
telecom. It, banking coupled with cheaper availabilities of finance has turned more people debt
friendly. The main driver in the commercial market segment has been IT companies, blotech
companies and BPO.

28

2.2

Major players of Indian ceramic tile industry

Major Players In India

Asian Granito (I) Ltd

Asian Granito is one of the largest ISO 9001 Certified vitrified tiles manufacturers in India.
Asian has two state-of-the-art manufacturing plants, technically collaborated with SACMI,
ITALY, the world class leader in ceramic technology. They have extensive network of business
associates, 250 distributors, more then 3500 retail counters and 19 depots in all over India. The
company has won 20 best display awards till date.

Gladder Ceramics Limited

Manufacturer of Ceramic Floor Tiles with advanced technology Roller Kiln, Superior Raw
Materials Enduring Ceramic Colours characterize the Floor Tiles manufactured by India's
Gladder Ceramics Limited for Export.

Kajaria Ceramics - Wall and Floor Tiles.

Kajaria Ceramics manufactures the widest range of floor and wall ceramic tiles to provide the
complete wall and floor solutions.

29

Nitco Group - Nitco Tiles.

The Nitco Group is a pioneer in the manufacture of high quality mosaic and terrazzo tiles and is
also one of the leading manufacturers of exterior paints and the largest processors of Italian
Marble in India.

SOMANY Floor and Wall Tiles.

The group's activities include ceramic glazed tiles, sanitary ware, glass containers, textiles and
sanitary fittings. The group has launched a new range of vitrified tiles called greviti, in
collaboration with Leonardo 1502 Ceramic Spa.

Sonata Floor Tiles

Sonata is in involved in manufacturing of state of art masterpieces in ceramic industry. Having
its production based in ancient town of Himatnagar, Sonata Ceramic Pvt. Ltd. is one of the most
advance ceramic product manufacturers in India.

30

Varmora Granito Pvt Ltd

Vermora has commissioned a fully automatic Italian plant for manufacturing floor tiles, wall
tiles, porcelain tiles and vitrified tiles. The company offers a complete range of tile products
using state-of-the-art manufacturing facilities with re-assuring quality checks. Encouraged by
favorable market response to floor tiles, the company has now enhanced its skill and technology
at production and marketing of floor tiles.
Other Ceramic Company:
Anant Raj Industries Ltd
Bally Glass & Ceramics
Cera Sanitaryware Ltd
English Indian Clays Ltd
Fag Bearings India Ltd
Hindustan Sanitaryware & Industries Ltd
Kajaria Ceramics Ltd
Mangalam Industrial Products
Murudeshwar Ceramics Limited
NTB Hitech Ceramics
Navrang Ceramic
Orient Ceramics & Industries Ltd
Rautec Ceramics Private Limited

31

Regency Ceramics Ltd

Restile Ceramics Ltd
SPL Ltd
Spartek Ceramics India Ltd

Geographical Presence of Ceramic Tile Industries in India:

(Source: www.icctas.com)

32

Gujarat as a Special State for the Production:

This includes a 10.2 per cent growth rate by March 2007, on the one hand, and the lifting of
some one lakh families that are handpicked from 20,000 villages from below the poverty line.
While the doubling of per capita agriculture income from Rs 8,000 to over Rs 15,000 over the
next three years is but a natural corollary, Mr. Modi plans to set up five agro export zones across
the State. The culmination of this process would be the erection of Asia's largest cold storage
zone in the Dahej Special Economic Zone (SEZ) in south Gujarat, so as to create a link from the
farm gate to the international customer for mangoes and other horticulture produce.
"The Vibrant Gujarat meet was just the beginning and the floodgate of investments to the State
has been opened. We had a Chinese company firming up plans to put up a ceramic tile
manufacturing plant in Gujarat at an investment of Rs 55 crore on Monday. Later this week, Mr.
Lawrence R. Klein, a 1988 Nobel laureate in economics, is coming to meet me along with Mr.
Polk Carey, Chairman of the leading US investment banking firm, WP Carey & Company.
Clearly, it is not merely a courtesy call as they also would be talking business," Mr. Modi said.
For those who have been picking holes in the investment proposals worth Rs 65,000 crore that
were signed at the Vibrant Gujarat meet, Mr. Modi's response is that there is nothing non-global
about Indian companies investing in Gujarat. On the other hand, two more Chinese firms that are
mulling fresh investment in Gujarat include a two-wheeler company and a machinery
manufacturer for the ceramic tiles industry, the latter considering an export-oriented plant along
the coast in Kutch district.
Reportedly the government of Gujarat is taking initiatives on improving the competitiveness of
the ceramic tiles industry. It has identify the for cluster Kutch, Rajkot, Morbi, Mahesana and
Himmatnagar for the development of ceramic industry. It has plans to set up a gas based power
plant which will lower power cost curing the industry.

33

Morbi, 62 kms from Rajkot has 300 mosaic tiles factories of which 90 running. Owners of more
than 40 of the 90 factories want to close because of their losses mounting. But the industry has a
real threat to industry from the ceramic tiles. Ceramic tiles are light and can be fixed without
much hassled on the floor.
Tills the early 1980s, slowly but steadily the ceramic were industry has grown in the state of
Gujarat, because of location advantage; technology advancement has contributed to its growth
and product diversification. With major group taking of from the early 1980s, currently it
occupies the second position after Uttar Pradesh in India.
Ceramic clusters Ahmedabad:
There are 950 ceramic units in ceramic clusters in Gujarat and all are family base. Most of these
clusters are poor in knowledge but have a high entrepreneurial spirit. To server this clusters units
and cater to the need of the ceramic industry in the small scale sector of Gujarat and ad joining
areas, central glass and ceramic research institutes (CGCRI) NARODA center Ahmadabad, one
of the contiguous laboratories of the council of scientific and industrial research (CSIR) was
establish in 1977. To improve the skill in these units, training and main power development
programmed were initiated in 1978. Institute conducted 32 technology development programmed
and trained 600 people; it has also conducted three entrepreneurship development programmed
to encourage new enterprises. The cluster at Morbi, himmatnagar and mahesana has benefited a
lot in technology development from CGCRI.

It has been able to use the fly ash (highly polluting waste products in the manufacture of
the ceramic tiles.

Ceramic tiles now contain 30% of the raw material as a fly ash.

It has also been able to produce the blue ceramic tiles, which are free from the lead.

Ceramic filters candles have been developed which also contain 20% to 30% of fly ash.

Cotton wick of the kerosene oil lamp has been replaced by the permanent ceramic wick,
which need to replace at all.

It has developed the technology for production of Bone china utilizing the china clay of
Gujarat.

34

2.3.

Market trend of ceramic tiles

Market trends of ceramic tiles in India

Wall Tiles:
In the wall segment, prices begin from Rs 22 per sq feet. The popular sizes here include 10 cm X
10 cm and 20 cm X 20 cm. While glossy finishes and dark colors were popular earlier, pastel
shades are the rage now.
Ceramics offers wall tiles in sizes like 20 cm X 20 cm and 30 cm X 30 cm. Their prices range
from Rs 20-40 per sq ft. They have recently introduced the 25 cm X 40 cm size where the price
is Rs 35-40 per sq ft.

Floor Tiles, Bathrooms:

In bathrooms too the trend is towards larger sized tiles. So many sizes ranging from 10 cm X 10
cm to 30 cm X 90 cm. The popular sizes include 25 cm X 35 cm, 30 cm X 45 cm, etc.
Natural finishes like silk, leather, linen, etc are in. Also very popular are stone finishes like
Jaisalmer stone, Udaipur green, Italian marble, etc. Customers also welcome jute and bamboo
textures. Geometric patterns have fallen out of favor. Pastel shades are in vogue now.
Manufacturers are offering full concepts, which include borders, motifs and matching wall and
floor tiles. Customers don't want to spend time mixing and matching wall and floor tiles and then
choosing the borders, hence manufacturers are offering those complete concepts.
In bathroom tiles Kajaria has recently launched the 25 cm X 40 cm size.

35

Floors Tiles, Homes

In grade A cities, natural finishes like stone, marble, rustic, leather and jute are in vogue. Matte
finishes are preferred over glossy finishes. Wood look-alikes are also very much in demand. In
smaller cities and towns, he said, glossy finishes, geometric designs and darker colors are still in
demand.

In residential flooring again, customer preferences are shifting towards larger sizes. The
minimum size in floor tiles today, is 30 cm X 30 cm. This can go up to 90 cm X 90 cm.
Rishi Kajaria, director at Kajaria Ceramics Ltd., informed that their range of floor tiles for homes
is available for Rs 20 to 40 per sq ft. Kajaria offers rustic styles like Kansas and Ranger. They
also offer rectified (joint less) tiles under the brand name Rectificado. All these three types of
tiles come in the price range of Rs 35-40 per sq. feet. They have also launched the Graphica
range which comprises of designer tiles in the Rs 32-35 per sq ft price range.
Floor Tiles, Offices
In offices vitrified tiles are catching on very fast - in both polished and glazed finishes. In the
glazed finish the advantage is that you get a lot of designs. In polished finishes you get restricted
to beige color and marble finish.
Vitrified tiles can take a lot of abrasion. For the polished finish, So many offers tiles in the price
range of Rs 60 to Rs 120 per sq feet. For the glazed finish their prices range from Rs 40 to 60 per
sq feet.
So many has launched the VC Shield range which is made from Veil craft technology. Besides
being abrasion resistant, these tiles are also frost and stain resistant, and they are also joint less.
The VC Shield range comes only in matte finish, not in glossy finish. They come in two sizes: 40
cm X 40 cm and 50 cm X 50 cm.

For the office sector Kajaria imports vitrified (porcelain) tiles from Indonesia, which come in the
Rs 50-70 per sq ft. The largest size they offer here is 60 cm X 60 cm.

36

Trends of the usages in global:

The American taste:
Time when the AMERICAN public associated ceramic tiles with a 10X10 cm white square used
solely in the industry bathrooms and kitchen is long gone. Today the situation has turn around
completely and it is becoming increasingly common to find ceramic tiles in specious communal
areas of American homes the hallway, living room, dinning room, and kitchen as well as in
bathroom.
The trend for making open home makes it impossible to divide floor space into rooms. As
ceramic tiles are already valued as covering for high traffic areas like entrance and areas
susceptible to staining such as a dinning room and kitchen, the new trend works to benefit
A) Domestic housing:
The fact that American housing has become larger and are still increasing in size means that the
America are taking more and more to larger format tiles. In general term the most popular format
are 15X15, 15X20, 20X25, and 20X30 cm for wall tiles, where as in floor tiles the 30X30,
33X33, 40X40, 45X45 cm size sell most. Large format are most popular in the state of Florida
and California. On the design side rustic and distressed the stone tiles are no. one. Marble effect
tiles also have market and semi polished tiles are fashionable. Modular size were small format
are used for kitchen walls and workshops and in a combination larger format on floors, are also
very popular.
B) Neutrals shades:
As far as color trends are concerned, the American are still wedded to neutral and pale shadecream, beiges, sand, toast, and so on. Darker shade are become popular especially those part of
the country were tiles are mostly used. Other popular color is gray, pink and pale green. On the
whole the American consumer trends to aim to create a comfortable house with traditional dcor.

37

German taste:
There is no such thing as German taste even in what is now a unified Germany the answer,
surely, has to that there is no central European taste. In todays world of long Haul travel and
world wide communication network European have become living in global village. The most
fashionable motifs are taken from natural out in the market place, those product with a design
inspired be nature are the most successful. Faithfully replicating granite and marble is not
enough: it is essential that color and texture be inspired by nature too.
The trend is being spurred by the outstanding the specification that for porcelain stone ware can
offer. Equally, it is decorative potential in both floor and wall tiles. A close look at the trends in
floor tiles would seem to confirm that leading color are beiges, brown, anthracite, and black.
White and blue; the preferred color for wall tiles is white, especially combine with blue.
Combination of white and yellow green colors are frequently being popular in Germany there is
currently move back to using loud colors in dcor and this are gaining ground on the pastels
It is important to note that the large format is greater in the south of the areas then in the north. In
the north and east the traditional 20X25 cm format for wall tiles and 30X30 cm for floor tiles are
preferred. As regard borders and complimentary pieces, anything goes: glass natural stone,
metal, ceramic borders, are adopting latterly for the German customer.

United Kingdom taste:

The British loves more formats. The United Kingdom is European country with the lowest per
capital consumption of ceramic tiles, but is showing and increase years on year. Spain is playing
a very important part in the leading foreign supplier of ceramic tiles the consumption of wall tiles
is streets ahead of that of floor tiles (approximately 80%:20% ). Sale of floor tiles, however, is
growing at faster pace than wall tiles in both value and volume.
The main and almost exclusive use of tiles in the home is cover bathrooms and kitchen walls.
The most widely sold format is small particularly 15X15 and 20X15 cm which together more
appropriate.
38

The colors spectrum, consumers color preference to be conservative. Very small format in dark
color (deep red, green and blue) are still popular for bathroom as is imitation marble.
In kitchen British taste toward light color and traditional motifs for the wall, whilst the classical
black and white checks board is still very popular for wall. Consumer with higher deposable
income for more sophisticated taste is beginning to consider that floor adds value to there home.
This is being reflected note just in rise in tiles sales but in greater diversity of style and colors
and offer to gather with bolder decors. For instance imitation natural stone for floor and larger
format in general both wall a floor. The use of tiles in increasingly frequently and become
popular in country.

As arising opportunity in the republic of Macedonia:

Since gaining independence in 1991, in spite of the difficulties posed by political and social
unrest in the region, Macedonia has implemented in reform programmed design to develop free
market economies and achieve and closures integration with international trading partner. The
priority has been placed on economy reform and, in this; the government has worked closely
both the World Bank and the MF. Macedonia has started working toward membership of the EU
and has recently been granted full membership to WTO.
The economy reform includes:

Widespread privatization of state and socially own enterprise.

Regional European and world wide trade liberalization.

Promotion of FDI (including major foreign capital banking and insurance

industry.

Macedonia took major steps toward integration with the EU with the signing of the stabilization
an association agreement in April 2004 and a free agreement with the European Free Trade
Association (EFTA) whose implementation this year. Duties and goods imported for EU into
Macedonia will be progressively reduce to zero duty by the end of 2010.

39

Country has some very important trading partner like Slovenia, Yugoslavia, Romania, Croatia,
Bulgaria, Turkey, Ukraine and Albania accounted for approximately total importing and
exporting in 2000. Macedonia has now sign free trade agreement with this country and begun
negotiation with Russian federation.
Recently Macedonia enters in to WTO for the integration to world trading system. It expands the
market of Macedonia goods and services. In order to attract FDI the government of Macedonia
has taken initiative steps include:

A relatively low rate of corporate income tax (15%).

The custom duty exemptions on imports of equipment and other capitals assets.

Creation of Free Economic Zone.

The benefit of producing in Macedonia includes:

Low labor cost

Highly skilled workforce

Strong industrial tradition

Stable macro economic situation

Easy access to export market in both EU and other Balkan state

Development of Macedonia relationship with the EU and the WTO

40

CHAPTER 3 :

STATISTICAL DATA OF CERAMIC

TILE INDUSTRY

3.1

Statistical data of Indian ceramic tile industry

Indian market with present scenario

Table

Quarterly Financial
Dec-08

Mar-09

Jun-09

Sep-09

Dec-09

Mar-10

SALES GROWTH

9.08

4.56

15.38

16.54

17.25

20.06

EXPENSE GROWTH

11.47

2.46

17.44

15.96

17.48

23.34

PBDIT GROWTH

0.12

14.57

7.09

19.25

17.52

5.51

PAT GROWTH

-20.24

179.97

369.71

219.96

315.4

1.01

EXPENSES

81.2

81.29

81.51

81.76

81.36

83.81

OTHER INCOME

1.15

3.1

1.12

1.52

1.15

1.7

0.55

0.5

0.53

EXTRA

ORP 0.03

INCOME/TOTAL INCOME
PBD MARGIN

18.8

18.71

08.49

18.24

18.64

16.19

PAT MARGIN

1.75

4.83

3.44

4.64

5.33

3.72

(Source: www.ibef.com)

41

Indian ceramic exports details

Table 3.2
YEAR

EXPORT(RS.CRORE) GROWTH

2000-01

65

2001-02

107

66%

2002-03

147

37%

2003-04

172

17%

2004-05

225

31%

2005-06

272

21%

2006-07

284

5%

2007-08

333

17%

2008-09

464

39%

2009-10

558

20%

(Source: www.niir.com)
Graph
600
500
400
300
200

Export
Growth

100
0

42

Growth

Growth

Interpretation
Thus from the above figures it is clear that of ceramic has exhibited in general a healthy growth
rate through in comparisons to the total world exports in this product range capexils share is
low.
Table

Key Statistic

EXPORT

UNITS

2006-2007

2007-2008

2008-2009

2009-2010

TONNES

4725

4916

3852

5382

RS. CRORES

1.7

2.7

2.4

2.9

TONNES

223

125

526

277

RS. CRORES

0.8

0.9

2.6

4.6

QUALITY
EXPORT
VALUE
IMPORT
QUANTITY
IMPORT
VALUE

43

SALES VALUE

RS. CRORES

1462.8

1699.4

1865.5

1626.3

MARKET SIZE

RS.CRORES

1463.9

1700

1868

1630

DOMESTIC

RS CRORES

1461.9

1697

1865.6

1627.9

CONSUMPTION
(Source: www.niir.com)
Interpretation:
It is seen from the key statistics export quantity has been increasing from year 1999 and reached
to good heights in years 2010. The excise duty has been reduced slowly from 55% in 1994 to
16% in present situation. This shows a positive impact on the ceramic tiles industry since it adds
to the country economy. In comparison to imported quantity we have a quite larger export
quantity this shows that production is quite sufficing and appreciable to meet company demand.
The import duty has been increase the domestic consumption.

Major export destinations from India in this category

Table
Sr.NO

COUNTRY

EXPORT (IN LAC RS.)

SAUDI ARABIA

8622.33

UAE

6634.75

UK

4555.35

SRI LANKA

3275.42

GERMAN FED. REPUBLIC

2128.33

NIGERIA

1999.11

44

MALAYSIA

1868.85

USA

1867.65

SOUTH AFRICA

1176.53

10

BANGLADESH

1166.47

11

KOREA SOUTH

971.26

16

OTHERS

18048.89

(Source: www.ceramicindia.com)

Statistical data for the ceramic tiles

Table

Growth& Profitability
Year

Sales

Export

PBIT

PAT

PBIT

PAT

Growth

Growth

Growth

Growth

Margin

Margin

JUN-08

38.58

45.67

17.3

-40.55

21

2.19

SEP-08

32.64

40.11

8.8

-5.5

18.94

129

DEC-08

26.86

27.49

24.7

-7.11

21.84

4.05

MAR-08

12.88

18.15

5.56

-72.99

17.56

0.33

JUN-09

8.59

8.53

8.83

370.89

20.08

1.08

SEP-09

9.64

9.36

10.89

-21.37

17.95

1.9

DEC-09

9.08

11.47

0.12

-20.34

18.8

1.75

45

MAR-10

4.56

2.46

14.57

179.97

18.71

4.83

JUN-10

13.52

15.11

7.11

369.71

18.8

3.49

SEP-10

16.54

15.96

19.25

219.96

18.24

4.64

DEC-10

17.35

17.18

17.52

315.47

18.64

5.22

MAR-10

19.9

23.45

4.33

-4.73

16.14

3.7

(Source: department of industrial polices and promotion)

Interpretation:
It is being seen that sales growth was very good in the early years of 2006 but slowly it declined
and referring to the facts of the years 2004. We can say that from June 2007 it has held
constancy. This figures form a similarly even for the other terms. But a very huge gap was there
in the year 2002. This constancy in sales growth consistency is because of decline in excise duty,
which has positive, affected the exports.
Table

Demand& Supply For The Country

Year

Prodn.

Prodn

Imports

Imports

Exports

Exports

(Tonnes)

(% Chg) (Tonnes)

(% Chg)

Jul-09

60836

16.38

149

99233.33

324

161.84

Aug-09

60380

-7.98

25

82.62

307

19.53

Sep-09

61899

8.72

40

44.83

261

270.21

Oct-09

70691

22.1

726

-23.63

Nov-09

50883

-5.37

-13.38

177

-82.49

Dec-09

63800

-4.38

38

1604.04

106

-80.25

(% Chg)

46

Jan-09

59737

-6.01

Feb-09

63043

8.46

109

1792.36

832

84.56

790

470.6

(Source: department of industrial polices and promotion)

Interpretation:
It is been seen that the production of the ceramic tiles has been comparatively increasing slowly
and gradually from year 2003 to June 2004. The imports of the imported till has been reduced
and the export made by the various companies have gradually increased.

The Indian ceramic tile industry is estimated at US$ 0.35 billion

Table
Year

Billion

2006

97

2007

100

2008

103

2009

123

2010

207

(Source: www.icctas.com)

47

Graph

Income
250
200
150
Income

100
50
0
2006

2007

2008

2009

2010

Interpretation:
The size of the Indian ceramic tile industry is estimated at US$ 0.35 billion. It comprises of wall
tiles, floor tiles and vitrified tiles. The per capita consumption of ceramic tiles in India is just
0.15 square meters per annum, which is quite low as compared to developed countries.
3.1.6 Capacity of ceramic tiles
Table
Year

Million tones

2006

120

2007

120

2008

120

2009

120

2010

215

(Source: www.icctas.com)

48

Graph

Capacity of Ceramic Tiles

250
200
150
Capacity of Ceramic Tiles

100
50
0
2006

2007

2008

2009

2010

Interpretation:
The industry has been experiencing increased demand, which, in recent years, has matched the
installed capacity. While capacity has also increased significantly, from 120 million tones in
2006, to 215 million tones in 2010, the demand has grown nearly two and a half times in the
same period, from 97 million tones to 207 million tones. Ceramic tiles are produced by
organized, as well as unorganized players. The share of production of organized players is
around 55 per cent.

49

3.2

Global statistical data of ceramic industry

Top manufacturing countries of ceramic tile

Table

Country

2005 Production 2006 Production 2007 Production

(Mill.Sq. Meter) (Mill.Sq. Meter) (Mill.Sq. Meter)

China
Spain
Italy
Brazil
Indonesia
India
Turkey
Mexico
Thailand
Iran
Vietnam
Egypt
Malaysia
Portugal
Russia
Poland
United States
Germany
UAE
South Korea
Taiwan
Japan
France
Morocco
Argentina
Czech Republic
Algeria
South Africa
Columbia
Philippines
Total

1,810
638
638
473
220
109
150
167
63
78
95
65
67
66
45
46
55
57
40
50
47
53
44
35
27
30
30
15
26
25
5,550

1,868
651
606
508
230
150
162
159
100
95
105
83
72
69
58
49
58
54
48
56
40
51
41
35
30
29
30
20
26
25
5,740

1,950
624
603
534
260
190
189
171
135
120
110
83
72
70
70
66
61
58
57
56
46
46
40
40
36
31
30
30
26
25
6,030

Percent

of

World

Production(Based
on 2007)
32.3
10.4
Production Data)
10.0
8.9
%
4.3
3.2
3.1
2.8
2.2
2.0
1.8
1.4
1.2
1.2
1.2
1.1
1.0
1.0
0.9
0.9
0.8
0.8
0.7
0.7
0.6
0.5
0.5
0.5
0.4
0.4
100.0

World
Production
(Source "World Production and Consumption of Ceramic Tile", Ceramic World Review).
50

Top Consumption Countries for Ceramic Tiles:

Table
Country

2005

2006

2007

% of World

Consumption

Consumption

Consumption

Consumption

(Mill.Sq. Meter) (Mill.Sq. Meter) (Mill.Sq. Meter)

(Based on 2007)

China
Brazil
Spain
United States
Italy
India
Germany
Mexico
Indonesia
France
Vietnam
Turkey
South Korea
Thailand
Russia
Iran
Poland
Egypt
Saudi Arabia
United Kingdom
Portugal
Japan
Taiwan
Malaysia
Morocco
Algeria
South Africa
Greece
UAE

1,500
417
312
211
192
102
164
129
168
125
95
94
59
60
65
72
71
50
53
62
60
56
55
51
31
34
24
33
27

1,600
456
327
245
183
145
144
141
110
124
98
90
83
65
77
85
62
66
58
56
61
54
43
45
33
35
28
33
29

1,700
421
332
267
183
180
147
146
130
125
103
103
97
97
92
87
75
66
61
61
56
49
48
45
36
35
35
33
33

29.7
7.4
5.8
4.7
%
3.2
3.1
2.6
2.6
2.5
2.2
1.8
1.8
1.7
1.7
1.6
1.5
1.3
1.2
1.1
1.1
1.0
0.9
0.8
0.8
0.6
0.6
0.6
0.6
0.6

Australia
Canada
Total

29
25
4,426
5,142

33
29
4,638
5,426

32
31
4,906
5,724

0.6
0.5
85.7
100.0

Total
Production

(Source from the ceramic world review magazine article)

51

Highest: per capita consumption / SQM of ceramic tiles in the world:

Table
HIGHEST PER CAPITA
COUNTRIES

CONSUMPTION / SQM

Argentina

1.50%

Turkey

1.60%

Poland

1.80%

France

2%

Brazil

2.20%

Alemay

2.30%

Italy

3.30%

Taiwan

5.20%

Portugal

6.30%

Spain

6.80%

(Source: www.ctasc.com, ceramic tiles and stone consultants)

Graph
HIGHEST PER CAPITA CONSUMPTION / SQM PER CAPITA
CONSUMPTION / SQM

5.20%
3.30%

A
IN
S
P

A
IW
A
P
N
O
R
T
U
G
A
L

LY

2.20% 2.30%

IT
A

2%

E
A
R
G

6.30% 6.80%

N
TI
N
A
T
U
R
K
E
Y
P
O
LA
N
D
F
R
A
N
C
E
B
R
A
ZI
L
A
LE
M
A
Y

8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
1.80%
2.00% 1.50% 1.60%
1.00%
0.00%

52

HIGHEST PER CAPITA CONSUMPTION / SQM PER CAPITA CONSUMPTION /

SQM

Interpretation
It is mostly seen from the graph and figure that Spain and Portugal are the largest consuming
countries for ceramic tiles, their share is about to be 6.8 % and 6.30% respectively. They are
followed by Taiwan and Italy with share of 5.20% and 3.30% consumption in Spain is highest
because better and more complex design and , in general, of possibilities of utilization in term of
duration, cleanness and hygienic aspects The concept of eco labeling has also raised the demand
for the ceramic tiles in the European country.

Highest ceramic tiles exporting countries in world:

Table
Country

2007 Exports

2008 Exports

2009 Exports

% of World

(Mill.Sq.

(Mill.Sq.

(Mill.Sq.

Export (Based

Italy

Meter)
441

Meter)
438

Meter)
418

on 2009)
7.3

Spain

339

357

336

5.9

China

53

125

206

3.6

Brazil
Turkey
Indonesia
UAE
Mexico
Malaysia
Portugal
Germany
France
Czech Republic
India
Thailand
Total

47
57
30
22
37
23
21
21
22
17
7
12
1,148

74
74
50
39
33
29
22
22
21
17
10
13
1,324

103
84
60
35
29
29
25
22
19
17
15
13
1,411

1.8
1.5
1.0
0.6
0.5
0.5
0.4
0.4
0.3
0.3
0.3
0.2
24.6

Total World

1,244

1,410

1,505

26.3

Exports
(Source from the ceramic world review magazine article)
53

Highest ceramic tiles importing countries in world

Table
Country

2007 Imports

2008 Imports

2009 Imports

(Million Square (Million Square (Million Square

Percent

of

World
Imports

Meters)

Meters)

Meters)

United States
Germany
France
Saudi Arabia
United Kingdom
South Korea
Greece
Australia
Belgium

160
127
104
48
54
22
33
24
25

189
113
104
61
48
32
33
28
24

207
111
104
55
52
42
33
25
25

(Based on 2003
13.8
7.3
Import
Data)
6.9
3.7
%
3.5
2.8
2.2
1.6
1.6

Israel
Canada
Poland
Netherlands
Austria
Thailand
Russia
Mexico
Hungary
Italy
South Africa
UAE
Total

31
24
26
19
16

26
27
23
19
15

13
8
13
14
7
9
776

12
13
14
16
12
13
824

25
25
23
18
16
15
14
14
13
13
12
12
851

1.6
1.6
1.5
1.2
1.0
1.0
0.9
0.9
0.9
0.9
0.8
0.8
56.5

Total

1,244

1,410

1,505

World
Imports
(Source from the ceramic world review magazine article)

54

World Manufacturing Regions for Ceramic Tiles

Table
Regions

2009

Production

% of World Production

Asia
European Union

(Million
3,058
Meters)
1,422

Square)

Central and South America

Europe (non E.U.)
North America
Africa

652
420
234
212

10.8
7.0
3.9
3.5

Oceania
Total

5
6,030

0.1

51.2
23.6

(Source: www.mrc.com)
Graph

60
51.2
50
40
30

23.6

20
10.8
10

3.9

3.5

North
America

Africa

0.1

0
Asia

European
Union

Central and Europe (non

South
E.U.)
America

Oceania

% of World Production

55

World Consumption Regions for Ceramic Tiles

Table
Regions

2009 Consumption
(Million

Asia
European Union
Central and South America
North America
Europe (non E.U.)
Africa
Oceania

Meters)
2,973
1,044
579
444
412
238
34

Total

5,724

% of World Consumption

Square
51.9
18.2
10.1
7.8
7.2
4.2
0.6

(Source: www.mrc.com)
Graph
60
51.9
50
40
30
18.2

20

10.1
10

7.8

7.2

4.2

0.6

0
Asia

European
Union

Central and North America Europe (non

South America
E.U.)

Africa

Oceania

% of World Consumption

56

Ceramic tiles segment wise share:

Table
Floor tiles

46%

Wall tiles

42%

Vitrified and porcelain tiles

12%

(Source: www.mrc.com)
Graph

Ceramic tites segment wise share

12%

floor tiles
46%

wall tiles
42%

vitrified and porcelain

tiles

Interpretation:
Tiles form the most significant part of the Indian ceramics industry and consist of floor tiles (46
per cent), vitrified and porcelain tiles (12 per cent) and wall tiles (42 per cent). The floor tiles
segment is growing faster as compared to wall tiles. Vitrified and porcelain tiles are recent
entrants into the ceramic tile industry and have increased the size of the market considerably. It
is expected that this segment will capture the bulk of the market gradually, replacing the
conventional floor and wall tiles segment. These tiles are light and have the added advantage of
being offered in designer looks as compared to mosaic tiles, which are. Heavier and more
expensive to transport. Both organized and unorganized sectors play a key role in the
manufacturing of ceramic tiles in India.
57

CHAPTER 4:

ANALYSIS OF INDIAN CERAMIC

TILE INDUSTRY

4.1 Driving forces:

Industry and competitive conditions change because forces are in motions that create incentives
or pressure for change. The most dominant forces are called driving forces because they have the
biggest influence on what kind of changes will take place in the industrys structure and
competitive environment.
1) A shrinking market growth heightens competitive pressures producing an often intense
battle for the market share and inducing mergers and acquisitions that result in industry
consolidation to a smaller number of participants. The same evenly implies to the ceramic
tiles industry as companies like sun earth, H R Johnson and many other have made a
number of acquisitions.
2) Product innovations can shake up the market structure of competition by broadening an
industrys customer base, rejuvenating industry growth and widening the degree of
product differentiation among the rival sellers. Continuous innovations are being brought
out for attraction of newer segments in the market. As for example bell grantee has
brought out for attraction of newer segments in the market. As for example bell grantee
has brought out with 3ft * 3ft tiles which are able to replace the slabs of natural stones.
3) Abundance of the raw material is available in our country, which is essential for the
production of the ceramic tiles. Materials like zircon and feldspar are exported in large
quantities by our country
4) Skillful labor require for the production of ceramic tiles is even available this increases
the production rate.
5) E.bip concept has been now raised up globally which has made the procurement of the
ceramic tiles and the supply scenario completely wide and good.
58

6) Housing sector is connected to the overall growth in the economy; it has as witnessed
significant growth during the last few years due to declining interest cost, steady real
estate prices, increased urbanization and fiscal incentives provided for tax purpose. The
housing sector is set to grow at an annual rate of 50% for the next 4 years. This would
thereby carry a promising future of the ceramic tiles also.
7) Due to decline in demand for funds from industry side and the retail in the banking
sector and the price war to acquire critical mass have helped more people to banking
sector and the price war to acquire critical mass have helped more people to decline in
demand for funds from industry side and the retail finance boom in the banking sector
and the price war to acquire critical mass have helped more people to afford home loans.
The rising salaries in Telecom, IT, Banking coupled with cheaper availability of finance
have turned more people debt friendly. The main drivers in the commercial market
segments have been IT companies, biotech companies, BPO.

8) Ceramic tiles environmentally scored well over their counterparts (marble, granite,
mosaics etc) due to its practically pollution free due to its practically pollution free
manufacturing. This resulted in a sort of boom in the industry. Single roller firing, this is
the most modern technology in the production of tiles today. The advantages are higher
productivity lower fuel consumption and reduced losses. Technological developments
can also produce

competitively significant changes in capital requirements minimum

efficient plant sizes, distribution channels and logistics and learning curve effects.

59

4.2 The competitive strategy:

There are different business approaches and initiatives which undertakes to attract the customers
and fulfill their expectations, to withstand the pressures and strengthen the market position.
They are as follows:
1) A low cost strategy appealing to a broad spectrum of customers based on being overall
low cost provider of product or service.
2) A broad differentiation strategy seeking to differentiate the companys product offering
from rivals in a way that appeal to the broad spectrum.

3) A best cost provider strategy giving customers more value for the money by
incorporating good to excellent product attributes at a lower cost of the rivals the target
is of all attributes at low cost.
4) A focused strategy based on the differentiation concentrating on a narrow buyer
segment and out competing rivals by offering niche members customized attributes that
meet their tastes and requirements better than rivals product.
Areas of application
As ceramic tile is having number of application, from past to this present scenario.
1) Esthetic value
2) Surface subjected to wear and tear
3) Under water/for flashing purpose.

Initially they were only used for the flooring purpose, but gradually with the creation of
glazed ceramic tiles they are used for cladding of walls in baths, toilets, and kitchens as well
as in decorative purposes. They are used in swimming pools and some water resistance and
durability.

60

Not only on an average in the Indian households but it is covering even medical centers, labs,
milk booths ,schools, public conveniences and countless other centers surrounding us.
So be more competitive and to cover the sections of its substitutes like marble, granite,
terrazzo etc, it is becomes necessary for the ceramic tile industry to have a competitive
strategy which would give it a broad section of buyer and have broad spectrum of buyers.
So it is to follow the broad differentiation strategy, by following the strategy the companies
would have chance for commanding a premium price & increase its unit sales.

4.3 PEST Analysis:

Political Factors: (Government, Legal, and Legislations)
1) Antidumping duty:
Government of India has laid antidumping duties on countries like china, Indonesia and
Malaysia. Because of the imported product available at cheaper cost the domestically
produced tiles was being negatively affected. Thereby safe guarding the Indian producer, anti
dumping duties are beneficial.

2) Excise duty:
The excise duty on the ceramic duty has been on downslide. From as high as 55 % in 1994 it
is brought to 16%. This has helped the industry to have a growth rate of 12% year on year
making it best amongst other comparable industry.

3) Uncontrolled export:
As a long-term measure uncontrolled export of ten aw materials like feldspar, zircon, sand etc
should be restricted. Instead they should be converted in to the country and even reduce the
chances of shortage in our country. Thus proving beneficial to the country.

61

4) Custom duty:
Currently the basic custom duty on import of raw materials is 20% while the basic custom
duty on the imported ceramic tiles has been reduced to 10 % from selected countries including
china. This puts the local manufacturer in a position of great disadvantage vis a vis the
importers as they have locally manufactured tiles at a higher price as compared to the
imported varieties in the same segment and the current market scenario is not conducive to
any price rise.

5) Housing policies:
Government is boosting the housing sector for which various schemes for the loans and
policies are being raised up. Moreover it is been even seen that the housing sector is one
adding to the economy of the country, so if the consumers are directed towards the ceramic
tiles owing to several factors ease in laying ability, versatility, low price and the most
important hygiene. This will have a positive impact on the industry.

6) Import duty:
The Indian council of ceramic tiles and sanitary wares are suggesting waving the import duty
on raw materials transferring ceramic tiles group ii of Bangkok agreement and making BIS
specifications mandatory for imported tiles.

7) Various agreements:
Today India is in among the top 8 countries producing ceramic tiles of the world, which is
about 190 million sq meters, 45 % of this also consists of a large number of SSI units
successfully nurtured by the government of India for the past 50 years. Hence, immediate
steps should be taken to protect the domestic industry being swept away due to
implementation

of

the

WTO

agreements,

Bangkok

agreement,

and

indo-silence

agreements.etc.

62

Economical factors:
1) Manufacturing process:
Unlike other counterparts the manufacturing process for the ceramic tiles is pollution free.
This provides not only concern for the environment but also tries to emphasis, that
technology related to it is being continuously updated to make it eco-friendly.

2) Transportation expenses:
Mosaic tiles are heavier and expend more on the transportation; while ceramic tiles are
lighter therefore more number can be transferred in shorter span of time. This reduces
overall transportation cost.

3) Production units:
The production unit size in India as compared to the globally producing units is lesser which
makes a hurdle to expand its work and further be a fully fleshed firm with all the amenities.

4) Per capita consumption:

In India the per capita consumption is as low as 0.1 sqm compared to 3 and 5 sqm in china
and Europe, respectively. Rising the disposal incomes of the growing middle class and 40
million units of the housing shortage, however hold out a great potential.

Social factors:
1) Religious facts:
The holy temples of Swaminarayan and Jain religion still prefer and use marble of higher
quality for the construction purpose. This reduces the demand for ceramic tiles at this
juncture. It is even supported by the comment that marble granite is natural stone. The
Swaminarayan maths in Darjeeling is best examples of red stones, the Palitana temple of
Janis are the best examples of tile substitutes.

63

2) Psychology of groups:
Still there are groups of people in our society who believe that marble, granite and other few
stones are adding prestige to their status and living style. This decrease a segment of the
society that is unaware of the ceramic tiles and their special characteristics making it put
behind its substitutes. People still carry the fear from slipping and skidding over on the
ceramic tiles.

3) Myth:
There has also been a belief that marble becomes cooler and needs to be taken care during its
usage in the winter season when it becomes very cool. It is also considered that the marble is
pure and used in temple only, not for housing sector.

Technological factors

1) Technology:
It would not be out of place to mention that we not lagging behind in technical know how
which compares favorably with the newer international standard and since our newer
technologies of fast firing have made the industry highly capital intensive.
As per the latest trend the single roller technology is also being used in our country for the
production of the glazed and unglazed ceramic tiles. Furthermore, this new technology also
allowed the production of high quality, low water absorption tiles of larger dimensions and
different shapes and colors. Design and application of computerization was easily embedded
in the production process, and an increasing variety of new high quality products flooded the
market afterwards.

2) Energy Efficient Bell Kiln for the Ceramic Industry

In ceramic industry, glazing kilns consume significant amount of electricity to produce heat.
Conventional electric kilns use heating elements embedded in the top or in the walls of the
furnace. Therefore, heat loss from the outer casing of traditional glazing kiln is a major
disadvantage leading to inefficient energy utilization. A new glazing kiln has been designed
64

using infrared radiation produced by the heaters, which are brought straight in to the heart of
the kiln charge, via as short a distance as possible. The most important feature of the new
kiln is that it is fired by MoSi2-glowing elements suspended between the charge stacks. The
distance between the slack and the elements is around 400 mm.because of the high
temperature of the elements (1600 c); the infrared radiation penetrates the charge stack faster
and deeper than in the old situation. The kiln itself has been designed for optimal energy
consumption, i.e.1.the mass is kept low by using a light insulation, 2. Wall thickness has
been optimized with regard to heat accumulation and insulation and, 3. There are no heat
conductors between the elements and the walls. Further, this kiln has additional advantages
due to the even temperature distribution, reduced rejection of products and also contributing
to energy saving. For a given production volume, the new kiln requires only 60% of the
firings required by the old kiln, so total saving for a given production volume is around 53%.
There are also additional unquantified benefits resulting from reduced maintenance and
operational costs.

3) Innovations: Recently H R Johnson the leading company in India and globally has put
up a new type of the tile, which is proving and providing the property of water
repellence. This is technology, which works behind for all this. This makes newer
segments and attract

65

4.4. Analysis of the Competitive Forces:

Professor Michel porter of the Harvard business school has convincingly demonstrated. The state
of competition in an industry is a composite of five competitive forces, which are as follows:
1) Competition among rivalry
2) Threats of new entrants
3) Threats of substitute products
4) Bargaining power of supplier
5) Bargaining power of buyer

We have analyzed here the five forces of competition in context with ceramic tile industry.
Analysis of the five forces of competition is as under relating to ceramic tile industry.

Why competition entered Indian market?

1) Booming housing sector
2) Picking up of commercial buildings
3) Rise of real estate activity
4) Requirements of creativity
5) Conversion of mosaic tile to ceramic tile
4.5.1 Competition among rivals:

In the ceramic tile industry it is been found that the rivalry is centered by the continuous new
innovations brought about in the types of tiles. Rivalry among the competitors in the ceramic
tiles industry is because of following reasons.

66

Attributes of an industry that increase the threat of rivalry:

1) Large number of competitors
2) Plethora of unorganized sector
3) Productive capacity is adding up in increments
4) Merger and acquisitions
5) Strong distribution network

1)

Number of competitors increases:

In case of the ceramic tile industry wall tile share is 42%, floor tiles are 46% and that of newly
entered vitrified & porcelain tiles are 13%. Share of the organized sector production is 56% and
that of unorganized is 44%. Number of units for organized is just 25 while that of unorganized
200 approximately. Among the organized the top 3 of floor and wall tile producers are H R
Johnson, malaria ceramics and SPL. H R Johnson has the market share of about 25.32%, kajaria
ceramic is about 14.51% and SPL is about 12.31%. H R johnson is even winning the position as
the global leader. Kajaria is the challenger brand and rest follow as the followers. H R Johnson
(India) limited is the market leader in India with a market share of 30% in wall tiles, 20% in floor
tiles and 25% in vitrified tile segments. Sun earth tiles have about 19 % market share in wall tiles
and 11% in the floor tiles.
Company exports have been to over 40 countries including Spain, Japan, Sweden, Singapore and
New Zealand, these markets are fiercely quality conscious, competitive and extremely difficult to
penetrate. In addition to these countries company has been exporting to the neighboring countries
like Sri Lanka, Maldives, Mauritius, Seychelles, etc. Moreover exports orders of some countries
like USA, UK are also executed by H R Johnson (India) limited in association with collaborator,
Johnson ceramics international, UK.
The product portfolio of kajaria consists of tiles of myriad shapes and sizes, which gives the
consumer array of choices.

67

2)

Mergers and acquisitions:

The demand-supply situation is a cause of worry for the industry, on one hand, the demand is set
to increase and on the other hand, industry is grappling with the over-capacity situation- a legacy
continuing since the early nineties. That is getting corrected as the industry is passing through a
consolidation phase.
There will definitely be more mergers and an acquisition in the near future, e.g. the sun earth
ceramics has acquired the savanna ceramics in February 2000. Sun earth recently acquired two
ceramic tile companies, one in Spain and the other in Romania. Thus, it has become the first
ceramic tiles company in the country to have an international presence.
3)

Plethora of unorganized sector:

The unorganized group producing the ceramic tiles is about 44% in India. This group has strong
regional effects due to number of market players. These players try to dump down the products
of national players by providing the product at the cheaper rate.

4)

Productivity expansion:

It is been found that there has scaling up of productivity made up various national playing
competitors as Kajaria ,H R Johnson, Murudeshwar ceramics and SPL .they have proposed for
20000,9000,and 50000-tonnes/day capacity.
Thus the competitive rivalry is high.

68

Threat of New Entrants:

A second force affecting industry attractiveness is the threat of new entrants. Net competitors
add capacity to the industry and bring with them the need to gain market share, thereby making
more competition more intense.
1)

New entrance:

New entrants are firms that have either recently begun operation in an industry or that threaten to
begin operations in an industry soon.

Barriers to entry into an industry

1) Huge investment
2) Product differentiation
3) Distribution network
4) Government regulation of entry

1)

Huge investment:

If the company wants to launch its ceramic tile company at national level then it requires the
huge investment, so it is not easy for new companies to come in ceramic tile industry. So the
entry is not so easy for new companies.
High amount of capital is required to produce qualitative product. The cost of other infrastructure
facilities is also to be considered by new entrants .so capital requirement is also one of the entry
barriers. Moreover it is been found that the technology required for the production purpose is
also very costly.
2)

Product differentiation:

It is been seen that various leading companies have come up continuously with large
innovations, which makes its space specific and constant.
a.

Murudeshwar is the pioneer in the vitrified section of the tiles, which was at a
good position right from wall to floor tiles even before hand.
69

b. H.R. Johnson is moving up with the anti-slip and anti-water repellent tiles
section in its recent launches.
c.

NAVEEN of vitrified tiles has gained popularity in a short span of time. MCLs
brand distinction of producing largest size floor tiles for the first time in the
country.

d. Bell granito revolutionized the Indias first fully flooring concept in India in the
late nineties by introducing body homogeneous vitrified tiles. The tiles were a
combination of classy designs of Italian marble and granite.
e.

For the SUN EARTH, SONARA and SAVANA brands enjoy strong brand
equity. The former is placed at the upper end of the price segment, where the
competition from unorganized sector and imports is much less. On the other
hand, savanna is pitted at the lower end of the market segment. Sun earth has also
been quietly introducing some value-added products in the market, which have
been getting good acceptance.

So it would be really a difficult task for the new entrant to put up a highly differentiated product.
3) Access to channel distribution:

H R JOHNSON Indias largest tile manufacturer and has geographically diversified

manufacturing plants located at 5 different parts of India. Company has widest distribution
network of 800 dealers and 7000 sub-dealers and our own 20 warehouses-cum-branch offices
spread across the products.
KAJARIA CERAMIC having established a good established network, marketing expenses in
the future will be lower. This coupled with expected buoyancy in the housing sector should result
in kajaria posting a healthy growth in earnings during the next two years.
SUN EARTH markets the sonara and savanna brands through a network encompassing nearly
500 dealers and distributors. It has joined the rank of select ceramic tile companies that possess a
distributor /dealer presence in all the states of the country. This ensures that the companys

70

products reach the point of demand easily. Having a widespread distribution network acts as a
high entry barrier for a lot of other players.
MCL has a strong presence in south India, which contributes more than 50 % of its revenues and
plans to tap northern and western market through its wide network.
MCL is now the only company in India, which has the largest number of company, owned and
operated showrooms, displaying the entire range of products manufactured by MCL. Currently,
it has 50 showrooms and 35 depots operating in different parts of the country. It plans to add
around 25 new showrooms, aggregating to total 75 showrooms. MCL has total 18 showrooms
and 12 depots in western and northern India.
Now taking about these big giants in the market having such a solid marled distribution channel
it will be difficult for any entrant to get in the market.

4) Government regulation of entry:

The government on the countries like china, Malaysia and Indonesia has laid anti-dumping
duty in order to protect the local manufacturers of the country. Thus the threats of the new
entrants are moderate.

71

Threat of substitute products:

Here the substitute products of the ceramic tiles are as follows: Marble, granite, terrazzo tile,
mosaic tiles, agglomerated stones, concrete paving stones, Kota stones, and these substitutes can
ultimately replace an industrys products and services.
Granite and marble still preferred because they are available in good big sizes to cover up good
areas in a single hard covering. Moreover in case of the strength and prestigious looks it has been
found that granite and marble are comparatively above ceramic tiles, marble and granite are
naturally available stones therefore its properties remain in consistency.
But there are chances that shades, strengths etc may vary. The price for 1 sq.ft of ceramic tile
that too vitrified tiles is greater than marble or good quality granite.

Bargaining Power Of Buyers:

Any industrys customers constantly look for reduced prices, improved product quality and
added services and thus can affect competition within an industry. Buyers play individual
suppliers against one another in their efforts to obtain these and other concessions this is certain
the case with some large retailers in their dealings with many of their suppliers. There are some
reasons.
a. The housing sector is witnessing a strong rise up hence it can be said that the
buyers of the ceramic tiles, the construction companies have been playing a major
role. Not only house holders but also even the constructors even prefer it because
of the durability, longevity, creativity and lesser transportation costs. Therefore it
is been seen that these companies can put up a reasonable rates compared to
existing rates in the market.

72

b. Urbanization has also been proved to be awareness factor making people know
about the concept of ceramic tiles. The number of companies playing regionally
and nationally can prove to be a boon to the buyers fetching a good rate for a
particular class of tiles.

c. Education level has created awareness among the people to use and know about
various types of ceramic tiles. This is due to the promotional activities.

Conclusion:
Analyzing the above five forces it can be said, the competition of rivals is very high i.e. the
number of companies working in the production of the tiles. The threat of new entrants is low
because of high distribution networks, huge investments and high product differentiation made
by the giants continuously. The threat of substitutes is also high because it is found that still there
are major groups following status, prestige and even groups in rural less aware about the product.
The threat of suppliers is negligible because the raw material needed is very easily available and
in abundance. The threat from the buyers is also high because of switching over nature of the
consumers, urbanization, number of companies in the market and education.

73

4.5.

The Boston consulting group approach:

The growth share matrix is divided in to four cells each indicating a different type of business:

Relative Market Growth

Star

Question mark
Ceramic tiles Ltd.

Cash cow

Dog

Relative Market Share

1. Question mark
2. Star
3. Cash cow
4. Dog

Among the four we can place the business in star cell because the market growth is high. The
companies related to the ceramic tiles are making good profit through there is a variation in
the sales. It is also found that the exports made by the country to various other countries are
quite high while relating to the imports they are quite less.
There is constant fight between the competitors for their continuous innovations being made.
There has been good distribution access made throughout the country by the organized sector
players making the product reachable to varied segments. But the unorganized sector is
having 44% of the share in the countrys market, which affects the organized share. The
vitrified and porcelain types of tiles which are new entrants to the segment of the ceramic
tiles are also forming a good market share of 13 % replacing granite and marble the
substitutes.

74

4.6.

Critical success factors:

The key factors for success for the ceramics industry are similar to that for glass, as they operate
in similar markets and address similar consumer segments. Both use energy intensive
manufacturing processes. Hence the key success factors for the ceramics industry will include:
Efficient manufacturing processes
Technology especially in growing areas like porcelain
And vitrified tiles
Supply chain management and distribution
Branding
Having a strong brand is more critical for ceramic tiles and sanitaryware, as these sectors address
individual consumers. Players like H. & R. Johnson, EID Parry and Hindustan Sanitary ware
invest substantially in advertising and brand building. Their efforts have been successful in
creating a felt need for high-end ceramic products in houses, especially in urban areas. Going
forward, the acceptance of technically superior, high-end products in these segments is expected
to be better than in the past. However, as the market is getting increasingly competitive, players
will still need to focus on creating a differentiated position in the market.

75

CHAPTER 5 Financial Analysis

Balance sheet and Ratio Analysis :
1)

Asian Granito India Ltd

Asian Granito India Ltd

Year
SOURCES OF FUNDS :
Share Capital
Reserves Total
Equity Share Warrants
Equity Application Money
Total Shareholders Funds
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities
APPLICATION OF FUNDS :
Gross Block
Less : Accumulated Depreciation
Less:Impairment of Assets
Net Block
Lease Adjustment
Capital Work in Progress
Investments
Current Assets, Loans & Advances
Inventories
Sundry Debtors
Cash and Bank
Loans and Advances
Total Current Assets
Less : Current Liabilities and Provisions
Current Liabilities
Provisions
Total Current Liabilities
Net Current Assets
Miscellaneous Expenses not written off
Deferred Tax Assets
Deferred Tax Liability

Mar 11

Mar 10

Mar 09

Mar 08

Mar 07

21.06
202.92
0
0
223.98
145.32
0.01
145.33
369.31

21.06
185.27
0
0
206.33
137.08
0.04
137.12
343.45

21.06
168.7
0
0
189.76
100.98
8.54
109.52
299.28

21.06
136.36
0
0
157.42
57.31
0.52
57.83
215.25

14.06
51.46
0
0
65.52
49.94
3
52.94
118.46

255.6
67.15
0
188.45
0
0.9
0

234.52
48.19
0
186.33
0
0.06
0.05

190.49
33.08
0
157.41
0
0
0.05

103.83
14.59
0
89.24
0
11.24
17.7

51.64
9.12
0
42.52
0
2.61
4.11

123.76
83.66
17.12
40.61
265.15

110.88
64.46
21.73
43.29
240.36

89.75
51.33
12.31
41.4
194.79

63.61
38.74
6.72
30.84
139.91

48.71
31.76
3.54
13.46
97.47

53.32
19.02
72.34
192.81
2.93
0
15.78

47.91
26.29
74.2
166.16
5.27
0
14.42

26.78
19.85
46.63
148.16
5.5
0.49
12.33

28.46
14.57
43.03
96.88
6.3
0.15
6.26

21.46
5.16
26.62
70.85
3.19
0
4.82

76

Net Deferred Tax

Total Assets
Contingent Liabilities

-15.78
369.31
66.56

-14.42
343.45
72.76

Asian Granito India Ltd

11-Mar
10-Mar
Key Ratios
Debt-Equity Ratio
Long Term Debt-Equity Ratio
Current Ratio
Turnover Ratios
Fixed Assets
Inventory
Debtors
Interest Cover Ratio
PBIDTM (%)
PBITM (%)
PBDTM (%)
CPM (%)
APATM (%)
ROCE (%)
RONW (%)

-11.84
299.28
8.35

-6.11
215.25
13.74

-4.82
118.46
15.36

9-Mar

8-Mar

7-Mar

0.66
0.17
1.32

0.62
0.2
1.37

0.48
0.15
1.49

0.5
0.16
1.53

0.87
0.43
1.54

2.21
4.62
7.32
2.98
10.84
7.34
8.37
7.21
3.71
11.29
9.34

2.03
4.3
7.45
3.7
11.73
8.21
9.51
7.94
4.41
11.2
9.61

2.38
4.58
7.79
3.98
16.06
12.94
12.81
10.24
7.13
18.07
14.41

2.61
3.61
5.76
7.22
23.5
20.81
20.62
15.73
13.04
26.05
23.74

3.86
3.75
6.44
6.36
21.28
18.78
18.32
15.35
12.85
30.77
38.28

77

2)

Asian Tiles
Year

SOURCES OF FUNDS :
Share Capital
Reserves Total
Equity Share Warrants
Equity Application Money
Total Shareholders Funds
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities
APPLICATION OF FUNDS :
Gross Block
Less : Accumulated Depreciation
Less:Impairment of Assets
Net Block
Lease Adjustment
Capital Work in Progress
Investments
Current Assets, Loans & Advances
Inventories
Sundry Debtors
Cash and Bank
Loans and Advances
Total Current Assets
Less : Current Liabilities and Provisions
Current Liabilities
Provisions
Total Current Liabilities
Net Current Assets
Miscellaneous Expenses not written off
Deferred Tax Assets
Deferred Tax Liability
Net Deferred Tax
Total Assets
Contingent Liabilities

Asian Tiles Ltd

Mar 08

Mar 07

Mar 06

Mar 05

4.06
9.55
0
0
13.61
7.06
0.29
7.35
20.96

4.06
6.41
0
0
10.47
8.57
1.07
9.64
20.11

4.06
4.41
0
0
8.47
9.39
0.99
10.38
18.85

4.06
3.16
0
0
7.22
2.47
0.96
3.43
10.65

19.6
5.35
0
14.25
0
0
0

19.03
4
0
15.03
0
0
0

17.69
2.77
0
14.92
0
0
0

9.34
1.98
0
7.36
0
0
0.34

7.34
8.63
1.88
2.2
20.05

5.75
5.9
0.63
1.43
13.71

5.46
5.83
0.36
0.94
12.59

2.38
3.63
0.18
0.67
6.86

8.32
2.28
10.6
9.45
0.46
0
3.2
-3.2
20.96
0.03

4.61
0.99
5.6
8.11
0.01
0
3.04
-3.04
20.11
0.01

5.99
0.71
6.7
5.89
0.11
0
2.07
-2.07
18.85
0

3.56
0.37
3.93
2.93
0.02
0
0
0
10.65
0

78

Asian Tiles Ltd

8-Mar
7-Mar
Key Ratios
Debt-Equity Ratio
Long Term Debt-Equity Ratio
Current Ratio
Turnover Ratios
Fixed Assets
Inventory
Debtors
Interest Cover Ratio
PBIDTM (%)
PBITM (%)
PBDTM (%)
CPM (%)
APATM (%)
ROCE (%)
RONW (%)

6-Mar

5-Mar

0.71
0.4
1.14

1.06
0.59
1

0.88
0.46
1.01

0.48
0.23
1.21

2.15
6.36
5.73
5.28
17.09
13.84
14.47
10.79
7.55
28.37
26.08

1.51
4.94
4.72
3.98
19.98
15.53
16.08
11.67
7.23
22.14
21.12

2.07
7.14
5.92
9.53
15.08
12.25
13.79
9.47
6.65
23.36
23.71

1.62
6.34
4.16
6.48
23.91
18.87
20.99
19.67
14.64
26.81
30.61

79

3)

Orient Ceramic
Year

Orient Ceramics & Industries Ltd

Mar 11
Mar 10

SOURCES OF FUNDS :
Share Capital
Reserves Total
Equity Share Warrants
Equity Application Money
Total Shareholders Funds
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities
APPLICATION OF FUNDS :
Gross Block
Less : Accumulated Depreciation
Less:Impairment of Assets
Net Block
Lease Adjustment
Capital Work in Progress
Investments
Current Assets, Loans & Advances
Inventories
Sundry Debtors
Cash and Bank
Loans and Advances
Total Current Assets
Less : Current Liabilities and Provisions
Current Liabilities
Provisions
Total Current Liabilities
Net Current Assets
Miscellaneous Expenses not written off
Deferred Tax Assets
Deferred Tax Liability
Net Deferred Tax
Total Assets
Contingent Liabilities

Mar 09

Mar 08

Mar 07

10.53
58.29
0
0
68.82
72.45
30.36
102.81
171.63

10.53
50.98
0
0
61.51
53.53
10.28
63.81
125.32

10.53
41.97
0
0
52.5
59.19
13.27
72.46
124.96

10.53
37.45
0
0
47.98
72.51
21.77
94.28
142.26

10.53
35.49
0
0
46.02
52.61
7.34
59.95
105.97

207.33
128.24
0
79.09
0
1.54
20.08

199.64
118.83
0
80.81
0
0.26
0

195.76
108.22
0
87.54
0
0.72
0

190.73
97.6
0
93.13
0
1.3
0

156.76
88.14
0
68.62
0
0.97
0

69.05
40.32
1.89
30.14
141.4

57.37
31.6
1.6
13.44
104.01

41.37
26.34
1.19
11.88
80.78

42.4
40.45
0.7
14.96
98.51

27.82
34.92
1.95
22.42
87.11

62.91
3.06
65.97
75.43
0
0.66
5.17
-4.51
171.63
11.52

51.31
3
54.31
49.7
0
0.64
6.09
-5.45
125.32
6.51

35.33
2.04
37.37
43.41
0
0
6.71
-6.71
124.96
11.8

41.18
2.37
43.55
54.96
0
0.6
7.73
-7.13
142.26
8.93

30.72
13.75
44.47
42.64
0
0.53
6.79
-6.26
105.97
9.03

80

Orient Ceramics & Industries Ltd

11-Mar
10-Mar

9-Mar

8-Mar

7-Mar

Key Ratios
Debt-Equity Ratio
Long Term Debt-Equity Ratio
Current Ratio

1.28
0.5
1.06

1.2
0.36
0.93

1.66
0.67
0.92

1.64
0.83
1.05

1.23
0.59
1.06

Turnover Ratios
Fixed Assets
Inventory
Debtors
Interest Cover Ratio
PBIDTM (%)
PBITM (%)
PBDTM (%)
CPM (%)
APATM (%)
ROCE (%)
RONW (%)

1.53
4.94
8.68
1.87
8.49
5.36
5.62
4.96
1.82
11.26
8.72

1.36
5.46
9.31
3.38
13.22
9.21
10.5
8.26
4.25
19.86
20.1

1.24
5.7
7.15
2.04
12.9
8.44
8.75
7.12
2.67
15.08
12.68

1.33
6.56
6.11
1.45
10.24
6.06
6.07
5.26
1.08
11.24
5.28

1.39
6.89
7.05
4.53
15.51
11.15
13.06
10.22
5.85
24.44
28.61

81

4)

Regency Ceramic
Year

SOURCES OF FUNDS :
Share Capital
Reserves Total
Equity Share Warrants
Equity Application Money
Total Shareholders Funds
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities
APPLICATION OF FUNDS :
Gross Block
Less : Accumulated Depreciation
Less:Impairment of Assets
Net Block
Lease Adjustment
Capital Work in Progress
Investments
Current Assets, Loans & Advances
Inventories
Sundry Debtors
Cash and Bank
Loans and Advances
Total Current Assets
Less : Current Liabilities and Provisions
Current Liabilities
Provisions
Total Current Liabilities
Net Current Assets
Miscellaneous Expenses not written off
Deferred Tax Assets
Deferred Tax Liability
Net Deferred Tax
Total Assets
Contingent Liabilities

Regency Ceramics Ltd

Mar 11
Mar 10

Mar 09

Mar 08

Mar 07

26.44
-7.07
0
0
19.37
125.22
8.45
133.67
153.04

26.44
8.37
0
0
34.81
123.97
7.28
131.25
166.06

13.6
18.71
0
0
32.31
115.61
21.7
137.31
169.62

13.6
33.54
0
0
47.14
99.39
20.25
119.64
166.78

13.6
48.95
0
0
62.55
113.26
7.26
120.52
183.07

215.76
116.63
0
99.13
0
0.02
2.06

217.49
108.5
0
108.99
0
0
2.06

214.77
97.87
0
116.9
0
0
2.06

214.62
87.53
0
127.09
0
0
2.13

214.21
76.95
0
137.26
0
0.01
2.12

35.5
33
6.35
27.89
102.74

35.9
31.49
8.98
23.24
99.61

32.33
26.47
12.48
19.84
91.12

43.9
25.97
9.65
12.29
91.81

50.1
33.79
8.46
9.42
101.77

46.66
0.78
47.44
55.3
0
16.29
19.76
-3.47
153.04
7.15

33.51
0.88
34.39
65.22
0.06
13.48
23.75
-10.27
166.06
11.75

27.1
1.15
28.25
62.87
0.3
12.13
24.64
-12.51
169.62
19.18

37.14
1.15
38.29
53.52
0.53
9.15
25.64
-16.49
166.78
18.71

35.59
3.42
39.01
62.76
0.77
6.14
25.99
-19.85
183.07
16.34

82

Regency Ceramics Ltd

11-Mar
10-Mar

9-Mar

8-Mar

7-Mar

Key Ratios
Debt-Equity Ratio
Long Term Debt-Equity Ratio
Current Ratio

4.89
3.3
1.1

4
2.85
1.15

3.23
2.45
1.14

2.19
1.62
1.09

1.86
1.34
1.07

Turnover Ratios
Fixed Assets
Inventory
Debtors
Interest Cover Ratio
PBIDTM (%)
PBITM (%)
PBDTM (%)
CPM (%)
APATM (%)
ROCE (%)
RONW (%)

0.95
5.79
6.42
-0.44
1.87
-3.3
-5.59
-2.3
-7.46
0
0

0.81
5.14
6.05
-0.09
5.34
-0.76
-2.8
-1.53
-7.64
0
0

0.78
4.37
6.35
-0.41
3.13
-3.25
-4.8
-2.52
-8.9
-3.23
-37.33

0.67
3.07
4.83
-0.29
4.43
-2.91
-5.6
-3.34
-10.68
-2.41
-28.12

0.73
3.35
5.21
0.78
13.97
7.09
4.86
4.53
-2.35
6.05
-5.72

83

5)

Somany Ceramic
Year

SOURCES OF FUNDS :
Share Capital
Reserves Total
Equity Share Warrants
Equity Application Money
Total Shareholders Funds
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities
APPLICATION OF FUNDS :
Gross Block
Less : Accumulated Depreciation
Less:Impairment of Assets
Net Block
Lease Adjustment
Capital Work in Progress
Investments
Current Assets, Loans & Advances
Inventories
Sundry Debtors
Cash and Bank
Loans and Advances
Total Current Assets
Less : Current Liabilities and Provisions
Current Liabilities
Provisions
Total Current Liabilities
Net Current Assets
Miscellaneous Expenses not written off
Deferred Tax Assets
Deferred Tax Liability
Net Deferred Tax
Total Assets
Contingent Liabilities

Somany Ceramics Ltd

Mar 11
Mar 10

Mar 09

Mar 08

Mar 07

6.9
95.57
0
0
102.47
183.3
11.14
194.44
296.91

6.9
74.95
0
0
81.85
126.77
35.46
162.23
244.08

6.9
56.92
0
0
63.82
128.12
9.13
137.25
201.07

6.9
49.39
0
0
56.29
138.24
5.64
143.88
200.17

6.9
46.13
0
0
53.03
116.46
5.14
121.6
174.63

349.92
176.81
0
173.11
0
2.82
1.72

290.79
160.69
0
130.1
0
23.74
1.73

277.8
147.87
0
129.93
0
0.09
0.81

276.32
139.62
0
136.7
0
1.64
0.79

255.28
132.21
0
123.07
0
0.58
0.81

97.64
129.33
14.72
60.24
301.93

70.95
101
14.73
60.9
247.58

54.19
81.22
9.29
31.3
176

56.75
64.36
10.14
17.11
148.36

67.62
57.17
5.82
13.2
143.81

124.93
32.07
157
144.93
0
1.23
26.9
-25.67
296.91
16.37

112.44
23.43
135.87
111.71
0
0.94
24.14
-23.2
244.08
16.65

70.7
9.88
80.58
95.42
0
0.82
26
-25.18
201.07
17.45

60.03
2.09
62.12
86.24
0
3.22
28.42
-25.2
200.17
17.65

70.19
1.19
71.38
72.43
0
4.82
27.08
-22.26
174.63
17.51

84

Somany Ceramics Ltd

11-Mar
10-Mar

9-Mar

8-Mar

7-Mar

Key Ratios
Debt-Equity Ratio
Long Term Debt-Equity Ratio
Current Ratio

1.94
1.02
1.08

2.06
1.15
1.07

2.34
1.36
1.04

2.43
1.47
1.02

2.35
1.49
0.99

Turnover Ratios
Fixed Assets
Inventory
Debtors
Interest Cover Ratio
PBIDTM (%)
PBITM (%)
PBDTM (%)
CPM (%)
APATM (%)
ROCE (%)
RONW (%)

2.34
8.91
6.52
2.82
9.26
6.96
6.78
5.42
3.12
19.33
25.42

1.98
8.99
6.17
3.18
10.5
7.93
8.01
6.21
3.64
20.03
28.08

1.67
8.34
6.35
1.81
9.53
6.49
5.95
4.93
1.89
14.97
14.55

1.32
5.65
5.78
1.44
10.84
7.01
5.96
4.99
1.16
13.13
7.45

1.15
4.46
6.31
1.35
10.6
6.37
5.89
5.08
0.85
10.83
4.87

85

Limitation

We have collected the secondary data where we cannot able to get exact information about the
telecommunication industry privilege in the market as ratio are based in past data and hence
cannot be reliable guide to future performance as future is dependent on other factors.

86

CHAPTER 5

CONCLUSIONS

There are at present 16 units in the organized sector with an installed capacity of 21 lakh million
tones. It accounts for about 2.5% of world ceramic tile production. The Ceramic tiles industry
has grown by about 12% per annum during the last three years. In India the per capita ceramic
tile consumption is 0.15 sq. m. per annum as compared to 1.2 sq. m. per annum in China and 5 to
6 sq. m. per annum in European countries. Its demand is expected to increase with the growth in
the housing sector. Indian tiles are competitive in the international market. These are exported to
East and West Asian countries. The export was about Rs.558 Crores during 2009-10
Sanitaryware also is manufactured both in the large and small sector with variance in type, range,
quality and standard. This industry has been growing by about 5% per annum during the last 2
years. There is significant export potential for sanitaryware. These are presently exported to East
and West Asia, Africa, Europe and Canada. The export was about Rs.93.43 crores during 200809.
Potteryware signifying crockery and tableware are produced both in the large scale and the small
scale sector. Units are spread all over the country. There are 16 units in the organized sector with
a total installed capacity of 43,000 tones per annum. Bone china crockeryware items are
imported from Bangladesh and Sri Lanka in view of the availability of cheap natural gas and
better availability of raw materials there. The export of potteryware during 2001-02 was of the
order of Rs.45.50 crores.

1. It is very clear from the study of the ceramic tile industry that the industry is highly
capital intensive because of the technology and infrastructure, therefore it requires a good
economical and sound technological knowledge for this purpose to set up a plant or
manufacturing the unit of ceramic tiles.
2. Since the housing and commercial sectors are booming and witnessing a strong pushup
therefore the industry has good prospects for the future years. The new entrants have also
pushed up the market share through vitrified and porcelain tiles.

87

3. Ceramic Tiles today have become an integral part of home improvement. It can make a
huge difference to the way company interiors and outdoors look and express.
4. The Indian tile industry, despite an overall slowdown of the economy, continues to grow
at a healthy 15% per annum.
5. Revenue earning industry - excise mops up over Rs. 350 crores annually from the
organized sector itself.
6. There is urbanization and raised education level which will also create awareness among
the mass for the usage of the ceramic tiles instead of its substitutes which also have a
positive impact on the industry.
7. The WTO, various agreement and duties laid by the government will also prove to be a
boon for the domestic and major players in the market. It will also be affecting positively
the registered and non registered producers in the market.
8. The technology, labor as well as the abundance of the raw materials is the beneficent
factors for the development of a ceramic tiles unit, which are well versed and furnished in
our country.
9. The concept of efficient bidding and procurement if brought to India will also help in
major destination of exports be increased and provide a good profit margin for the
producers. But it still requires enhancement of technology at the stage of the dealers, subdealers, showrooms and even and local retail outlets. The infrastructure of our
manufacturing also needs to be improved through expansion.
10. A strong and widespread of the distribution network is also adding to success point for
the ceramic tiles industry because it makes it reach gig her and more availability. It wills
thereby promoter the industry to get good sales growth, increasing the profit.
11. Gujarat accounts for around 70% of total ceramic production of India and in the
unorganized sector it is 35%
12. It plays important role in growth of Indian economy because Indian ceramic industry
provides employment to 550000 people, of whom 50000 are directly employed

88

Bibliography

Reference Book:

Marketing management, Philip Kotler.

Crafting and executing strategy Strick Land, Thompsom, Gamble and Jain

Web Links:

http://dipp.nic.in/industry/ind_plcy_03/ceramic.htm

http://www.smeda.org.pk
http://www.icctas.com/cer amicindustry/mainpage.htm#HISTORY

http://www.ibef.org/download/Glass_and_Ceramics_170708.pdf

http://dipp.nic.in/industry/content_industries/CERAMIC%20INDUSTRY.htm#ceramic

http://www.tata.com/pdf/tata_review_apr_09/business_ceramic_success.pdf

http://www.valuenotes.com/krc/krc_weekender_06Oct07.pdf

http://www.hotfrog.in/Companies/Morbi-Ceramic-Industry/Morbi-ceramic-industrygoes-International-2404

http://www.hotfrog.in/Companies/Morbi-Ceramic-Industry/n-Ceramic-IndustryPerspective-and-Export-Potential-4488

http://blog.morbiceramicindustry.com/2009/07/indian-ceramic-companies-receivedboost/

http://blog.morbiceramicindustry.com/2008/07/indian-ceramics-confirms-ahmedabadvenue-for-2009/

http://ibef.org/download/Glass_and_Ceramics_060109.pdf

89

www.eximbankindia.com/cera-wp.pdf

http://www.asiangranito.com

http://www.hrjohnsonindia.com

http://www.kajariaceramics.com

http://www.krchoksey.com

http://www.marketresearch.com

http://www.indian-ceramics.com

News papers:

Times of India

Economic times

Business standard

Magazines

Ceramic world review magazines

Search engine:

www.google.com

www.bing.com

90