Management Research Project - I

Report
On
Strategic Analysis of Indian Ceramic Industry

Submited to:Dr. Nishith H Bhatt

Submited By;Jaydip Modi (08)

Paresh Suthar (17)
Hiral Pandya (36)

History & Development of Industry

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.
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.

Highlights Of Ceramic Tiles Industry in India

Ceramic Tiles today have become an integral part of home

improvement. It can make a huge difference to the way your
interiors and outdoors look and express. The Indian tile
industry, despite an overall slowdown of the economy
continues to grow at a healthy 15% per annum. Investments in
the last 5 years have aggregated over Rs. 5000 crores. The
overall size of the Indian ceramic tile industry is
approximately Rs 18,000 crore (FY13). The production during
2012-13 stood at approx. 600 million

Global scenario of ceramic tiles industry

Countries like Malaysia, Thailand, Indonesia, Shri-lanka and

Vietnam are setting up their own plants.
China is emerging as the leading producer.
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.
In India per capital consumption is No.1 sum while
comparison it is 3 to 5 sqm in China and Europe.
The top end of the global export is dominated by Italy and
Spain.

Major Players :

American Olean
Ann Sacks Tile & Stone
Arizona Hot Dots
Arizona Tile
Armstrong Ceramic Tile
Bedrosians
Clayhaus Ceramics

Major players of Indian ceramic tile industry

Asian Granito (I) Ltd

Gladder Ceramics Limited
Kajaria Ceramics - Wall and Floor Tiles
NitchGroup Nitcho tiles
SomanyFloor and wall Tiles.
Sonata Floor Tiles
Varmora Granito Pvt Ltd

PESTL Analysis:
Political Factors: (Government, Legal, and
Legislations)
1. Antidumping duty:
2. Excise duty:
3. Uncontrolled export:
4. Custom duty:
5. Housing policies:
6. Import duty:
7. Various agreements:

Economical factors:
1.
2.
3.
4.

Manufacturing process:
Transportation expenses:
Production units:
Per capita consumption

Social factors:
1. Religious facts:
2. Psychology of groups:
3. Myth

Technological factors
1. Technology
2. Energy Efficient Bell Kiln for the Ceramic
Industry
3. Innovations

Analysis of the Competitive

Forces
Attributes of an industry that increase the
threat of rivalry:
Large number of competitors
Plethora of unorganized sector
Productive capacity is adding up in increments
Merger and acquisitions
Strong distribution network

Threat of New Entrants

Barriers to entry into an industry

Huge investment
Product differentiation
Distribution network
Government regulation of entry

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.

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.

The Boston consulting group

approach:

Star

Question Mark

Ceramic Tiles Industry

Cash cow

dog

Market
Growth

Market shrare

SWOT Analysis
Strengths
experienced business units
skilled workforce
domestic market
existing distribution and sales networks

Weaknesses
managed by foreign engineers as there is
Unavailability of skilled workman force
We still got 60 % of Production Capacity.
high loan rates are possible
tax structure
future profitability
small business units
competitive market
future competition
investments in research and development

Opportunities

Internet shopping
Further exploiting the Tile sector
global markets
growing economy
income level is at a constant increase
new markets

Threats
Various company is coming to
Granite Industry
Overseas groups entering the market (Chinas
Dumping )
tax changes
unexpected problems
financial capacity
global economy