A Project Report on

“MICRO ANALYSIS OF
MARKETING DEPARTMENT”
SUBMITTED IN PARTIAL FULFILLMENT OF

MASTER OF BUSINESS ADMINISTRATION

AT

CERA SANITARYWARE LTD.

Under the guidance of

Mr. Riyasat Ali, R.M.

Cera Sanitaryware Ltd.

(Delhi, N.C.R)

Submitted By:

Deepak Jain

M.B.A(2009-2011)

HARYANA SCHOOL OF BUSINESS, G.J.U S&T, HISSAR

 INTRODUCTION

The world of wisdom begins with the very first day to implement theory into
practical life. Every student has to gain practical experience along with the
theoretical knowledge because theory and practice are two basic needs of a future
manager.
Today in this global scenario, the preference of consumers changes with the
changing fashion. They change their preference according to the mass. But still
there are some major attributes, which does not change always e.g. brand.
Customer prefers only branded products. They have some expectations from the
brand. Price is another factor, which decides the preference of the customers.

Customers have different expectations from different products and

according to that they decide their preference. They buy the product only when
their expectations are fulfilled.
Summer training is one of the most important project curriculums for
management students. Its basic idea is to strengthen the student’s concepts &
knowledge through practical training and make them acquainted with the recent
developments.

This project is on “Micro analysis of Marketing Department”. I hope that

this report will be useful for understanding the customer’s desire.
 ACKNOWLEDGEMENT

I would like to express my sincere gratitude to the following person without

whose support, help and encouragement, this project could not have reached its

successful completion.

First of all I would like to thank Mr. Rakesh Sambyal, G.M, CSL, for providing me

this wonderful opportunity of getting corporate exposure.

I would extend my sincere gratitude to Mr. Riyasat Ali (R.M, CSL.), my project

guide for encouraging me to put my best effort and Mr. Amit Kumar(Sales

Executive, CSL) for providing me the necessary help while carrying out the project.

(Deepak Jain)
 History
Of
Sanitaryware
Unlike body functions like dance, drama and songs, defecation is
considered very lowly. As a result very few scholars documented precisely
the toilet habits of our predecessors. The Nobel Prize winner for Medicine
(1913) Charles Richet attributes this silence to the disgust that arises from
noxiousness and lack of usefulness of human waste. Others point out that
as sex organs are the same or nearer to the organs of defecation, these
who dared to write on toilet habits were dubbed either as erotic or as vulgar
and, thus, despised in academic and social circles. It was true for example
of Urdu poets in India, English poets in Britain and French poets in France.
However, as the need to defecate is irrepressible, so were some writers
who despite social as well as academic stigma wrote on the subject and
gave us at least an idea in regard to toilet habits of human beings. Based
on this rudimentary information, one can say that development in
civilization and sanitation have been coterminous. The more developed
was the society, the more sanitized it became and vice versa.

Toilet is part of history of human hygiene which is a critical chapter in the

history of human civilization and which cannot be isolated to be accorded
unimportant position in history. Toilet is a critical link between order and
disorder and between good and bad environment.

In our own country i.e. India, how can any one ignore the subject of toilet
when the society is faced with human excretions of the order of 900 million
litres of urine and 135 million kilograms of faucal matter per day with totally
inadequate system of its collection and disposal. The society, thus, has a
constant threat of health hazards and epidemics. As many as 600 out of
900 million people do open defecation. Sewerage facilities are available to
no more than 30 per cent of population in urban areas and only 3 per cent
of rural population has access to pour flush latrines.

Seeing this challenge, we think the subject of toilet is as important if not

more than other social challenges like literacy, poverty, education and
employment. Rather subject of toilet is more important because lack of
excremental hygiene is a national health hazard while in other problems the
implications are relatively closer to only those who suffer from
unemployment, illiteracy and poverty. Thus the study of the history of toilet
is an important subject matter.

As long as man did not have an established abode, he did not have a toilet.
He excreted wherever he felt like doing so . When he learnt to have a fixed
house, he moved toilet to courtyard and then within his home. Once this
was done, it became a challenge to deal with smell and the need was felt to
have a toilet which can intake human wastes and dispose these out of the
house instantly and, thus , help maintain cleanliness. Man tried various
ways to do so i.e. chamber pots, which were cleaned manually by the
servants or slaves, toilets protruding out of the top floor of the house or the
castle and disposal of wastes in the river below, or common toilets with
holes on the top and flowing river or stream underneath or just enter the
river or stream and dispose of the waste of the human body. While the rich
used luxurious toilet chairs or cross stools, the poor defecated on the
roads, in the jungle or straight into the river.

It was only in the 16th century that a technology breakthrough came about
and which helped the human beings to have clean toilets in houses. This
breakthrough did not come about easily and human race had to live in
sanitary conditions for thousands of years.

Historical Evolution
The perusal of literature brings home the fact that we have only
fragmentary information on the subject of toilet as a private secluded place
to help the body relieve its waste. Sitting type toilets in human history
appeared quite early. In the remains of Harappa civilization in India, at a
place called Lothar ( 62 Kilometers from the city of Ahmedabad in Western
India ) and in the year 2500 BC, the people had water borne toilets in each
house and which were linked with drains covered with burnt clay bricks. To
facilitate operations and maintenance, it had man-hole covers, chambers
etc. It was the finest form of sanitary engineering. But with the decline of
Indus valley civilization, the science of sanitary engineering disappeared
from India. From then on , the toilets in India remained primitive and open
defection became rampant.

The archaeological excavations confirm existence of sitting type toilets in

Egypt (2100 BC) also. Though we have been able to mechanize the
working of these toilets, the form and basic format of the toilet system
remains the same. In Rome, public bath-cum-toilets were also well
developed. There were holes in the floor and beneath was a flowing water.
When the Romans travelled they constructed the toilets for their use. The
stools were key-hole type so that these could be used for defecation as
well as urination. Excavations in Sri Lanka and Thailand too have brought
out a contraption in which urine was separated and allowed to flow while
the other portion was used at the same time for defecation.

Historical evidence exists that Greeks relieved themselves out of the

houses. There was no shyness in use of toilet. It was frequent to see at
dinner parties in Rome, slaves bringing in urine pots made of silver; while
members of the royalty used it but continued to play at the same time.
Whatever little information is available about history of toilets in India, it was
quite primitive. This practice of covering waste with earth continued till the
Mughal era , where in the forts of Delhi and Agra one can see remnants of
such methodologies to dispose of human waste.

Between the period 500 to 1500 AD was a dark age from the point of view
of human hygiene. It was an era of cess pools and human excreta all
around. Rich man's housing and forts in India had protrusions in which
defecation was done and the excrements fell into the open ground or the
river below. The forts of Jaiselmer in India and big houses on the banks of
rivers bear testimony to this fact. In Europe, it was an era of chamber pots,
cess pools and cross stools. So were the toilets protruding out of the
castles and the excrements from which fell into the river.

It was also an era of "liberty to pee" French poet Claude le Petit described
Paris as 'Ridiculous Paris' and in the following words :

"My shoes my stockings, my overcoat

My collar, my glove, my hat
Have all been soiled by the same substance
I would mistake myself rubbish"
There was lot of jest and humour relating to toilet habits and toilet
appurtenances. Ballets were performed with basket of night soil in the form
of hood, on the head or a tin plate commode moving around with toilet
sounds. The clothes were spotted with accessories from the toilet. The
actors were etronice (night soil) Sultan Prime of Foirince (i.e. diarrhoea)
etc. There are stories given by Guerrand VI, which depict the mood of
Europe at that time. A lady of noble birth requested a young man to hold
his hand. The young man suddenly feels the urge to urinate. Forgetting that
he is holding the hand of a lady of noble birth he relieves himself. At the
end he says " excuse me Madam, there was lot of urine in my body and
was causing great inconvenience ". Similarly, Maid of Honour Anne of
Austria owing to excessive laughter urinated in the bed of the queen .
Joseph Pujol (hero extraordinary of French scatology) in his shows
demonstrated many types of farts i.e. young girl, mother-in-law , bride. He
could even extinguish a candle 30 centimeters away through his farting.

Public Toilets and People

In each society from time to time the government felt the need to provide
public toilet facilities to those who could not afford to have individual toilets.
The public toilets have a long history in number of countries and most of
which were constructed and managed by municipalities. But there was
alround disgust with their poor maintenance, vandalism and lack of basic
facilities . The Mughal King Jehangir built a public toilet at Alwar, 120 kms
away from Delhi for use of 100 families at a time in 1556 AD. Not much
documentary evidence exists on the quality of its maintenance but one can
well visualize that with rudimentary technology and with government to
manage the O&M functions, it like others must be in very unsatisfactory
condition. As hygienic conditions in public toilets were bad, people
preferred to do open defecation. This was true in most of the countries. It
was in 1872 that the municipalities in France asked the private companies
to manage public toilets for a lease period of 20 years. The private
companies were also offering even amounts to government as they felt
confident to recover the same through user charges. Ground floor owners
were also being requested to construct latrines for use of the passersby.
Previously known as Palais Royal Hotel in Paris, the owners started
charging monthly fee from diners. Incidentally condoms were also sold as
part of the facilities.

Law and Citizens

In order to improve sanitary conditions, Governments in various countries
also resorted to legal measures. Dirt by definition was considered as
disorder, because it disrupts order of maintaining the environment.

In 1519 the provincial government of Normandy in France made provision

of toilets compulsory in each house. The French government also passed a
parliamentary decree to make cesspools in each house compulsory. Again
a similar attempt was made in 1539. In Bordeaux in France, the
government made construction of cesspools compulsory. It was tried again
in 1668 when the Lieutenant of Police made construction of toilets
compulsory. In England the first sanitation law was passed in 1848. In India
the first sanitation bill was introduced in 1878. It tried to make construction
of toilets compulsory even in huts of Calcutta - the capital of India at that
time. The Bill even proposed construction of public toilets at the cost of
neighbouring houses. The government of India enacted another Sanitation
Act in 1993. Under this Act construction of dry latrine and its manual
cleaning was made an offence. But despite these enactments open
defecation is rampant. Proving that unless adequate social awareness is
created in a developing country where instruments of state are weak and
low family income, it is hard task to make significant progress in this area.
Toilet Technologies
Eighteenth century was a century of toilets. Despite invention of water
closet by John Harrington in 1596 which was costing only 6 shillings and 8
pence this was not adopted on a large scale for almost 182 years. The
delays in actual use of invention is common in human history which Toffler
calls as "Cultural Gap". It was true for railway train, ballpoint pen and
innumerable other inventions. During this period people used earth closet.
In these toilets instead of water earth was used. So the problem of cleaning
remained. The world also saw development of Pan closets- which like
cigarette ash tray threw the material at the bottom. This too required
manual cleaning. At the same time, chamber pots , cross stools, open
defecation remained. In comparison to this , Harrington toilet under the
name Angrez was being used in France, though not introduced on a long
scale in England. In 1738 JF Brondel introduced the valve type flush toilet.
Alexander Cunnings further improved the technology and gave use a better
device in 1775. In Cunnings's design water was perennially there in the
toilet so it suppressed odours. Still the working of the valve and fool-proof
inlet of water needed further improvements. In 1777 , Joseph Preiser
provided the required improvement. Then John Blummer in 1778,
substituted the slide valve with crank valve. It seemed then that the
technology of pour flush was now perfected. No the world was yet to
witness further technological developments. In 1870 , SS Helior invented
the flush type toilet, called optims- an improvement over Blummer's design.

From 1880 onwards, however, the emphasis has been more on aesthetics
to make cisterns and bowls decorative. The bowls were so colourful that
some suggested to use these as soup bowls. It was in 1880 that the toilet
curtains made their appearance. The trend was called the age of
"Belleepoque" in France and Edwardian (opulence) in England. During
1890 we had the first cantilever type of toilet. Since then the world has not
witnessed any significant technical change except some change in shape
of toilets and reduction in quantity of water per use.

It was around 1900 that the institution of bathroom came in vogue in

Europe. In India the institution of Gushalkhana (bathroom) was established
by the Mughal Kings in 1665. Oppressed by the heat and dust the Kings
constructed luxurious bathing and massage facilities. But this was only for
the rich. The ordinary citizens however lived in insanitary conditions.
Unlike in the past, when latrines were tucked away in attics to keep it away
from nose and eye of the family and the society, In contrast the twentieth
century, has given a pride of place to toilet in home-rather these are more
opulent, more spacious than anytime in the past. While the provision of
toilet in the house solved household problem of cleanliness but the
challenge remained as to how to dispose of human waste at city level. This
was also solved when the sewerage system was introduced. Houseman in
1858 , describes beautifully the sewerage system. He said that " the
underground galleries which are the organs of the big city will work in the
same way as organs of the body, without being reveled.
Sanitaryware
Industry in
INDIA
India is a large, highly populated Country of around one billion people, with
an economy, which is steadily growing. As per the study, there were an
estimated 125 million dwellings in India (1995), but 200 million households.
This reveals an acute housing shortage. The U.N. predicts an increase in
the population of 1.6% per annum. There is a gradual migrant shift from
rural to urban areas and 27% of the population now lives in urban areas as
compared to 20% in 1971. There is a large difference in amenities between
the urban population and the rural. In 1994, 70% of the urban population
had access to adequate sanitation, whereas in the rural community only
14% had access.

In 1991, approximately 64% of urban households had some kind of toilet

facility compared with 9% of the rural areas. There is a widening difference
in income between different regions, the rich and the poor.

Sanitation is a must for every individual of our society. According to the

Government estimates, more than 50% of the urban population does not
access to sanitation facilities. Condition of the rural areas abyssmal that
only 6% of the population are covered by sanitation.
Population Covered by Sanitation Facilities

sa 1985 1990 1997

Rural 0.7 2.4 6.4
Urban 28.4 45.9 49.3

Features of Indian Sanitary

Market
 High Growth Rate
 Highly Competitive Market
 High Margins
  Style And Price Oriented Customer
 Big Real Estate Developers Are Main Customers
 Huge Number of Local Manufacturers

Construction Boom Driving

Growth
The sanitaryware market in India has grown rapidly during the last 5-6 years, with
key players doubling their production capacities. India has emerged as a major
bath and sanitaryware market in the Asia-Pacific region.

The organized sector comprises more than half of the total market by value. The
major threat for the industry is from the unorganized sector, which provides
products at low prices. In terms of market value, organized players lead the
market but on the other hand in terms of volume, unorganized players hold the
major share.

Housing and institutional sectors are the major growth drivers. At present,
housing demand is rapidly rising and with increasing purchasing power people
have started taking interest in premium sanitaryware products. Sanitaryware
demand comes from new projects as well as from replacement market.

The report analyzes the Indian sanitaryware market. It begins with a discussion of
the worldwide sanitaryware market and then analyzes Indian sanitaryware
segments. Apart from analyzing the key trends prevalent in the market, the report
also discusses the major sectors in the market and growth drivers. It also profiles
major players with a discussion of their key business strategies.
Sanitaryware Leaders in India
E.I.D. Parry (India) Ltd

Company that has interests in ceramic sanitaryware (Parryware), sugar, bio-

products, chemicals, fertilisers etc; part of the Murugappa Group; based in
Chennai

Sugar   Sanitaryware  

HSIL Ltd (formerly Hindustan Sanitaryware & Industries Limited)

Manufacturers & exporters of sanitaryware (brandname: Hindware) based in

Gurgaon; flagship company of the Somany Group; products include sanitaryware,
bathroom fittings, bathtubs & whirlpools, shower enclosures, kitchen sinks,
cooking ranges etc

Sanitaryware  

C. Bhogilal West-End (Vile Parle)

Dealers of bathroom and kitchen fittings in Mumbai, with a 5-floor showroom

displaying international brands of floor and wall tiles, wooden flooring,
sanitaryware, shower cubicles and panels, bathtubs, Jacuzzis, gas stoves,
chimneys etc

Sanitaryware   Building Materials   Kitchenware  

Hindustan Ceramics

Manufacturer and exporter of high quality sanitary ware in Ghaziabad, Uttar

Pradesh; range includes wash basins with pedestal, commodes, squatting pans &
urinals, wash basins, accessories etc under the Marware brand

Sanitaryware  

Cera Sanitaryware Ltd

Pioneer in the sanitaryware segment in India based in Kadi, Gujarat; first

sanitaryware company to use natural gas and introduce the bath suite concept;
products: sanitaryware, glass basins, whirlpools & bath tubs, shower range, bath
fittings etc

Sanitaryware  

Crabtree India Ltd

Company manufacturing modular switches and luxury Italian-style bath fittings

and accessories; has ISO 9001 certified factory at Baddi in H.P., and a plant in
Bhiwadi in Rajasthan; part of Havell's India, with head office located in Noida

Sanitaryware   Electrical Accessories  

Kohler India

Indian branch of global firm manufacturing bathroom fixtures such as bathtubs,

washbasins, kitchen sinks, WCs, urinals, bidets, faucets, drinking fountains,
whirlpools, fiberglass spas, & shower enclosures, and console tables since 1873
Sanitaryware  

Parryware

Sanitaryware brand of E.I.D. Parry, Chennai; web site has information on

products, showrooms etc; product range include water closets, wash basins,
urinals, bidets, bathtubs, sinks, seat covers, cisterns, faucets & accessories

Sanitaryware
Some Important Facts And Fig.
Regarding Indian
Sanitaryware Market
India is second largest bath sanitary ware market by volume in Asia Pacific. It is
expected that bathroom equipment market of India will rise at the average rate of
4.6% in terms of volume. India is the largest market of WCs, in the world. Plastic
cistern and ceramic cistern is popular in the market..

However the bath market is still very small whereas in bathroom section corner or
cloakroom type basin is preferred. Ceramic sanitary ware market of India is
dominated by the local players who offer good quality products at very low prices.
There are two distribution channels in India: the organized and unorganized. The
products of unorganized sector are normally of low quality.
The fittings market by volume in India is growing at a rate of 13.3% per annum.
Local manufacturers are dominating the market who sells their product at low cost.
Due to rising ppp average prices are expected to increase. The share of two handle
mixture is rising significantly.

Sanitaryware Demand
Sanitaryware Industries in India for the last 6-7 years have shown very
dramatic growth with major players doubling their production capacity. The
Companies have also upgraded their manufacturing system by introducing
Battery Casting, Beam Casting and have gone in for latest imported Fast
Firing Cycle Kiln Technology. These Companies have also upgraded their
quality and have introduced high value range in the market, which has
been accepted and appreciated. The demand for high value Sanitaryware
in India is growing very fast. The Companies are trying to meet the demand
as the realization per Metric Ton for high value product is very good which
ultimately results in good profitability. In order to educate the customers in
India to go for quality products and also for higher value sanitarywares,
companies have adopted a very aggressive advertisement campaign.
Companies have also strengthened their dealer network by offering
showroom incentives and some of the companies have also gone for their
own retail outlets in major towns. The demand for Sanitarywares in India is
growing @ 15% -17% every year.

The sanitaryware industry in India is divided in two sectors. The organized

sector consisting of 5 companies (M/s. Hindustan Sanitary Industries
Limited, M/s. E.I.D. Parry, M/s. Swastik Sanitarywares Limited, M/s.
Madhusudan Ceramics, M/s. Neycer India Limited), manufacturing
sanitaryware for the last 15-20 years and have established their Brand
image. The organized sectors produce fully vitrified sanitarywares, using
latest technology and best of Ceramic Raw Materials available in India. The
unorganized sectors have adopted local Indian technology to manufacture
the basic sanitaryware products. Since the availability of raw material is in
abundance and also very cheap in the state of Gujarat & Rajasthan,
various companies have established their factory in these areas. They are
producing the basic sanitaryware in various brands. Unorganized sector's
percentage of production capacity and also their sales in the local domestic
market are higher than that of the organized sectors' sales. Unorganized
sanitaryware manufacturer comes under small sectors and hence enjoy the
benefit of Nil Excise Duty and Sales Tax and hence they sell their products
in the domestic market approximately 70% cheaper than the organized
sector products.

Government of India Policy on Housing Sector is very encouraging. The

Government has announced Income Tax rebate on housing loan to boost
the housing sector. All financial institutions are lending money for
construction of house at a very low rate of interest. Government figure
shows that Housing Sector is growing by approximately 25% every year.
The need of Housing in India with 100 crores population looks to be very
potential. As per DGTD Survey Report there is a shortage of about 20
million houses in the country by the end of 8th Five Year Plan. The housing
has become a basic necessity, as people in India are looking forward for
improved sanitary condition. The concept of making toilet is fast growing
even in village areas, where toilet till last two years did not exist.

The cost of producing sanitaryware in India is substantially low as

compared to the advance countries, because the labour cost and the basic
raw materials for manufacturing quality sanitarywares is available at very
cheap rate and in abundance. Because of our low cost of production,
Indian sanitarywares are very competitive in the neighboring countries and
hence export from India is also growing everyday.

Demand Estimates :

The total demand for sanitaryware in India for the organized manufacturers
is at present approximately 80,000 M.T. per annum. The region wise
demand pattern can be estimated as follows:

NORTH SOUTH EAST WEST TOTAL

18,000 32,000 15,000 15,000 80,000

Note: Every year the above demand is expected to grow by 15 to 17%.

Current Market Size

 The Indian Sanitaryware market is worth around 500 crores for the year
2001-02 with an annual market size of around 8 million pieces. This
represents a yearly growth rate of about 3-4%.
Concerns
It has been observed that many sanitaryware manufacturers in the small-
scale sector do not manufacture ceramic sanitaryware to standard quality
norms. Moreover some of these manufacturers use the word "Vitreous"
along with their brand name whereas they do not meet the water
absorption standards and thereby are misleading the consumers.

Outlook for Sanitaryware

Industry in India
In the next decade, India is expected to be one of the world's fastest
growing countries for sanitaryware consumption. The sanitation penetration
has more than trebled from 8% in 1982 to 18% in 1994 and to 29% in 1999.

The comparative penetration levels in neighboring countries are as follows:

Pakistan: 50%, Sri Lanka: 65%, Malaysia: 94% and Thailand: 96%.

The government impetus to improve hygiene and sanitation is likely to

increase the demand for sanitaryware in India. Moreover the increasing
urbanization of India and the consequent requirement for residential and
commercial buildings will be a major driver for growth of sanitaryware.
Along with this the focus of the central and state governments to provide
housing facilities to the poor, is also expected to generate demand.

The National Housing Policy formulation that envisages "Housing for all" by
the end of Ninth Plan period is a big step towards this. Indira Awaas
Yojana, Samgra Awaas Yojana are programs for providing housing to the
rural poor is a key step taken by the government in this area. The housing
development organizations like HUDCO, State Housing Development
Boards and Rajiv Gandhi Rural Housing Corporation Ltd. are also playing a
large role in this initiative.
It is estimated that there is currently a demand for 20 million housing units
in India. Further, a significant number of the 115 million housing units
across the country will need reconstruction for improvement. Therefore a
replacement market will emerge, though currently original equipment
sanitaryware market accounts for nearly 90% of the market.

Analysis of Indian Sanitary

Industry
In the next decade, India is expected to be one of the world's fastest
growing countries for sanitaryware consumption. The sanitation

penetration has more than trebled from 8% in 1982 to 18% in 1994 and to 29%
in 1999. The comparative penetration levels in neighboring countries are as
follows: Pakistan: 50%, Sri Lanka: 65%, Malaysia: 94% and Thailand: 96%.

The government impetus to improve hygiene and sanitation is likely to increase the
demand for sanitaryware in India. Moreover the increasing urbanization of India
and the consequent requirement for residential and commercial buildings will be a
major driver for growth of sanitaryware. Along with this the focus of the central
and state governments to provide housing facilities to the poor, is also expected to
generate demand.

The National Housing Policy formulation that envisages "Housing for all" by the
end of Ninth Plan period is a big step towards this. Indira Awaas Yojana, Samgra
Awaas Yojana are programs for providing housing to the rural poor is a key step
taken by the government in this area. The housing development organizations like
HUDCO, State Housing Development Boards and Rajiv Gandhi Rural Housing
Corporation Ltd. are also playing a large role in this initiative.

It is estimated that there is currently a demand for 20 million housing units in

India. Further, a significant number of the 115 million housing units across the
country will need reconstruction for improvement. Therefore a replacement market
will emerge, though currently original equipment sanitaryware market accounts for
nearly 90% of the market.
Sanitaryware Industries in India for the last 6-7 years have shown very dramatic
growth with major players doubling their production capacity. The Companies
have also upgraded their manufacturing system by introducing Battery Casting,
Beam Casting and have gone in for latest imported Fast Firing Cycle Kiln
Technology. These Companies have also upgraded their quality and have
introduced high value range in the market, which has been accepted and
appreciated. The demand for high value Sanitaryware in India is growing very fast.
The Companies are trying to meet the demand as the realization per Metric Ton for
high value product is very good which ultimately results in good profitability. In
order to educate the customers in India to go for quality products and also for
higher value sanitarywares, companies have adopted a very aggressive
advertisement campaign. Companies have also strengthened their dealer network
by offering showroom incentives and some of the companies have also gone for
their own retail outlets in major towns. The demand for Sanitarywares in India is
growing @ 15% -17% every year.

The sanitaryware industry in India is divided in two sectors. The organized

sector consisting of 5 companies (M/s. Hindustan Sanitary Industries Limited, M/s.
E.I.D. Parry, M/s. Swastik Sanitarywares Limited, M/s. Madhusudan Ceramics,
M/s. Neycer India Limited), manufacturing sanitaryware for the last 15-20 years
and have established their Brand image. The organized sectors produce fully
vitrified sanitarywares, using latest technology and best of Ceramic Raw Materials
available in India. The unorganized sectors have adopted local Indian technology
to manufacture the basic sanitaryware products. Since the availability of raw
material is in abundance and also very cheap in the state of Gujarat & Rajasthan,
various companies have established their factory in these areas. They are
producing the basic sanitaryware in various brands. Unorganized sector's
percentage of production capacity and also their sales in the local domestic market
are higher than that of the organized sectors' sales. Unorganized sanitaryware
manufacturer comes under small sectors and hence enjoy the benefit of Nil Excise
Duty and Sales Tax and hence they sell their products in the domestic market
approximately 70% cheaper than the organized sector products.

Government of India Policy on Housing Sector is very encouraging.

The Government has announced Income Tax rebate on housing loan to boost the
housing sector. All financial institutions are lending money for construction of
house at a very low rate of interest. Government figure shows that Housing Sector
is growing by approximately 25% every year. The need of Housing in India with
100 crores population looks to be very potential. As per DGTD Survey

Report there is a shortage of about 20 million houses in the country by the end of
8th Five Year Plan. The housing has become a basic necessity, as people in India
are looking forward for improved sanitary condition. The concept of making toilet
is fast growing even in village areas, where toilet till last two years did not exist.

The cost of producing sanitaryware in India is substantially low as compared to

the advance countries, because the labour cost and the basic raw materials for
manufacturing quality sanitarywares is available at very cheap rate and in
abundance. Because of our low cost of production, Indian sanitarywares are very
competitive in the neighboring countries and hence export from India is also
growing every day.

Fig.: Showing the presence of various sanitaryware industry in IndiaSource:

Indian Council for ceramic tiles & sanitaruware

Table below shows the statistics data related to the sanitaryware industry. It can be
noted that not a single company is ranked in top 10 in terms of productions while
market is growing consistently at the rate of
 CERA
SANITARY
WARE
EXECUTIVE SUMMARY
Today, cera sanitaryware ltd is considered as one of the pioneers in the
sanitaryware segment in India. It is now the third largest company in the
organized sector with over 20% market share. Incidentally, it is also the
largest and only listed company in pure sanitaryware space.
To maintain the edge in the market, cera keeps upgrading and increasing
its product portfolio regularly. Moreover, it enjoys a strong distribution
network of 500 dealers and 5000 retailers. CERA has production capacity
1.3mn pieces but they are upgrading it to 2.2 mn pieces.
It is never easy to reach top position and it’s more difficult to maintain or
improve on that position. You need to constantly innovate and add value.
CERA is doing that by realizing that it is available up to the premium
segment and thus they felt to have their presence in luxury segment too. To
achieve this CERA has tied-up with Pozzi –Ginori, an Italian designer
Sanitaryware which is part of Sanitec Group, the European Sanitaryware
Leader.
In fact, sanitation is major issue in our country. And it would not be wrong
to say that sanitaryware industry is in a way of promoting proper sanitation.
Government is treating sanitaryware as a luxury product. Our stand has
been that basic sanitaryware is not a luxury product, but a utility product for
the common man. Even after 60 years of independence, there is almost
40% of population, which is in need of access to proper sanitation facilities.
The government policy of not treating sanitaryware as a luxury product by
reducing excise duty can go a long way in promoting sanitation. A lot of
diseases are spread due to improper sanitation. Thus. Proper sanitation in
turn can help government save on its health related spends.
The Company's principal activities are to manufacture and sell sanitaryware
and glazed tiles. The Company product includes ceramic sinks, wash
basins, wash basin pedestals, baths, bidets, water closet pans, flushing
cisterns, urinals and similar sanitary fixtures.
The growth of Ceramic/Sanitaryware industry entirely depends on allied
sectors like housing/real estate, Government quadrilateral projects, N-E-W-
S-Corridor all performing well ahead and is expected to post a healthy
growth in 2004-05. The restoration of natural gas and recent new gas finds
would also bring cheer to the industry players and R-LNG would play a vital
role in reducing the fuel cost.

INTRODUCTION TO CERA
SANITARYWARE LTD
Cera Sanitaryware Limited (CSL) is one of the pioneers in the sanitaryware
segment in India. CSL was founded in the year 1980 as a division of
Madhusudan Industries Limited. Realizing the future growth prospects of
this division, in the year 2001,management thought it worthwhile to have
independent identity by de-merging and transferring the entire business to
a new company. The new company was named Cera Sanitaryware Limited
It is now the third largest company in the organized sector with over 20%
market share. It is also the largest and only listed company in pure
sanitaryware space. CSL is the first sanitaryware company to use natural
gas and the first Indian sanitaryware company to have ISO 9002 and ISO
14001 certifications for its products.
Launched in 1980, Cera is a pioneer in the sanitaryware segment in India.
The first sanitaryware company to use natural gas, Cera has been on the
forefront of launching a versatile colour range and introducing the bath
suite concept. It also launched innovative designs and water-saving
products. The twin-flush model launched in India by Cera for the first time,
reduces the water needs of households considerably. WCs designed to
flush in just 4 liters of water is another notable innovation by Cera.
Based in Kadi, Gujarat, Cera Sanitaryware Ltd. uses German technology,
which has ensured CERA’s superiority over others in quality. Established
with an initial capacity of 3,600 MTPA, the plant has undergone several
periodical up gradations and modernizations to expand to 15,000 MTPA.
To achieve growth in the rapidly changing retail market in the country,
Cera, has launched its one of a kind Cera Bath Studios in Ahmedabad,
Bangalore, Chandigarh, Kolkata, Cochin and Hyderabad. With the opening
of the Cera Bath Studios, the discerning consumers architects and interior
designers can have full view of the CERA’s premium ranges of WC’s,
Wash Basins, Shower Panels, Shower Cubicles, Bath Tubs, Shower
Temples, Whirlpools, CP fittings etc. Cera Bath Studios will complement its
existing network of 400 distributors and 4000 retailers. Several Bathrooms
are displayed live, so that the customers can get a feel of CERA’s vast
range of products.
Soon, Cera will also launch premium Spanish Tiles in Indian market. The
company is poised to become a total bathroom solutions provider.
Having shown a growth rate of more than 20% since last 3 years, Cera
Sanitaryware Ltd. today is the fastest growing sanitaryware company in
India.
PRODUCT DETAILS AND
CONCEPT
Product of the company as is defined in company’s introductory chapter is
an sanitaryware product having mainly extraordinary features like twin flush
water saving product, soft close seat cover, shower temple product. This
product talk about giving an spa foot massage and inbuilt Jacuzzi which
experience artificial water waves and facilities like radio and telecasting
with six body jet spray.

Wider Product Range

Capitalizing on a strong brand image and an evolving market for sanitary

ware products like orrisa pans, EWC, wash basins. Apart from this CSL
has expanded it’s product range to other bathroom related products like
shower panels, shower cubicales, shower tamples, bath tubes,
whirpools, bath fittings, glass bowls, sensor for taps and unirals,
glass basins and PVC seat covers and PVC cisterns, which make it a
total bathroom solution provider.

Marketing Policy Analysis

Here we have analyzed various marketing aspects of Cera sanitaryware undertaken

for the marketing mix of the company. Various marketing mix of Cera

sanitaryware are as follows:

Product:

Product of the company as is defined in company’s introductory chapter is an

sanitaryware product having mainly extraordinary features like twin flush water

saving product, soft close seat cover, shower temple product. This product talk about

giving an spa foot massage and inbuilt Jacuzzi unit which give experience artificial

water waves and facility like radio and telecalling with six body jet spray.

Price:

Prices of the product and services offered are competitive compared to our

competitors products and also provide value for money to the customers. Because

as we talked in the earlier paragraph that features provided in the products are very

unique and are having low cost so finally company becomes best cost provider in

the market.

Place:

As cera sanitaryware is having excellent distribution channel empowered by 500

dealer’s network and 5000 retailers all across India. To supplement the distribution

network, it has 10 major depots across India. It has 7 zonal sales & service offices,

supported by another 28 sales offices, 7 bath studios strategically located in major

cities across India. To capitalize on the growth market for premium products, Cera
has entered into an exclusive marketing agreement with Italy's luxury brand Pozzi-

Ginori to market its designer sanitaryware in India.

Promotion:

Cera sanitaryware ltd has always been proactive in promotional activities for
increasing the brand awareness among the consumer so the company has
promotional scheme directed towards consumer as well as its partner (dealer).

• Consumer oriented: few months ago, the company had launch (special offer)

the promotional

scheme applicable

only in Delhi, Clair set in Rs. 3999/- for only one month.

• Partner oriented: gold scheme, silver scheme and foreign

travel scheme.

Conclusion of the Porter

By studying the above model, we drawn the following conclusion:

The sanitaryware manufacturers in the unorganized sector continue to enjoy duty

exemptions, which is not conducive for healthy competition. CSL faces a lot of

competition from the unorganized sector in Gujarat which is a cause for concern to

the company.
After studying the Model, we can conclude that Sanitaryware business completely

depends on the development and booming of the Housing and Retail Sector.

Currently, the industry is growing by leaps and bound due to high growth of

infrastructure. In near future, the great phase of consolidation will start. Firstly, by

providing wider range of Products besides service and covering more and more

geographical area by branches and franchises.

 SWOT
ANALYSIS
STRENGTHS:
• India’s first to use natural gas firing.

Direct connection of natural gas from GAIL has certainly helped CERA in

better margins. However, this is only one of the several advantages. CERA has

captive power plant using natural gas. CERA also has wind turbines. Thus

CERA is not dependent on government electricity board for its power

requirements. Others will take a long time to catch up.

Further, CERA is getting natural gas on very cheap rate directly from the

ONGC oil fields, which will continue to be cheap, wherein others are getting

imported LNG which is three times costlier than what cera is getting.

• India’s first to launch twin flush technology & 4 liters flush WC.

We have twin flush models that on an average consume only 4 liters of water,

against the others which can use up to 6 liters every flush. That quantifies to

50% of water saving. With water scarcity in urban areas, there are a lot of

initiatives that have already been taken by Metros like Mumbai. Others will

have to soon follow in order to save water.

• Wide product range.

Capitalizing on a strong brand image and an evolving market for bathroom

products, CSL expanded its product range to other related products like shower

panels, shower cubicles, shower temples, bath tubes, whirlpools, bath fittings etc.,

which makes it a total bathroom solutions provider.

• Huge distribution network.

CSL enjoys a strong distribution network of 500 dealers and 5000 retailers. To

supplement the distribution network, the company has several depots and zonal

offices across India. This will help the company in increasing its market share.

WEAKNESSES.

• The company has only one manufacturing plant at kadi, Gujarat.

While its nearest competitors HSIL and parry ware has more than one

manufacturing plant strategically located across different parts of India to bridge the

gap between demand and supply.

• Large unorganized existence

• Low R&D for product innovation

OPPORTUNITIES
• Rising domestic demand for tile, sanitaryware and table ware

• Large export potential in sanitaryware in Middle East, Africa and Central Asia.

• Exploit local expertise in related sectors, clusters technologies.

• Facilitate supply chain collaboration.

THREATS
• Low priced import from china

• Changing consumer preferences

• Large surplus capacities in the international market.

• Increasing regulatory pressures.

CORPORATE GROWTH
STRATEGY
The projected combined future sales and profit of the corporation’s business unit

(CERA) and product-markets fall short of the firm’s long run growth and

profitability objectives. There is a gap between what the firm expects to become if
it is continuous on its present course and what it would like to become. This not

surprising because some of its high growth markets are likely to slip into maturity

over time and some of its high profit mature businesses may decline to

insignificance as they get older. Thus, determine where future growth is coming

from, management must decide on a strategy to guide corporate development.

Recommended
Corporate
Strategy For
CERA
Market Presentation and
Product Development Strategy
Perhaps the growth strategy with the greatest potential for CERA is the aggressive

market petration for there existing products. This may involve creation of

marketing program aimed at non user or Brand-switcher segments of existing

markets. Expension into new product development into carter varying needs of

customer or product line extention in the current market is also a primary growth

strategy for CERA.

Diversification into Related

Business
Another growth strategy would be Diversification strategies. Examples like

diversification into related business of Vitrified Tiles industry to leaverage it’s

brand image. That will give up the company added advantage of “Complete Home

Solutions Provider”. That will open new avenue or Frontier for CERA company.

 Expand market for Existing Products

 Diversification Strategies
 New product Development
Findings and Suggestions
Findings

In the next decade India is expected to be one of the fastest growing countries for
sanitary consumption. The sanitation penetration has been troubled from 8% in
1982 to 18% in 1994 to 29% in 1999.

The comparative penetration levels in the neighboring countries are as follows:

Pakistan: 50%

Sri Lanka: 65%

Malaysia: 94%

Thailand: 96%

The government impetus to hygiene and sanitation is likely to increase

sanitaryware demand in India. Moreover increasing urbanization of India and
consecutive requirement for residential and commercial buildings will be a major
driver for growth of sanitaryware. Along with the focus of central and state
government to provide housing facilities to the poor, is also expected to generate
demand.

The National Housing Policy formulation that envisages “Housing for all” by the
end of Ninth plan period is a big step towards this. Indira Awas Yojna, Samgra
Awas Yojna are the programs for providing housing to the rural poor is a key step
taken by government in this area. The housing development organizations like
HUDCO, State Housing Development Boards and Rajiv Gandhi Rural Housing
Corporation Ltd. are also playing a large role in this initiative.

It is estimated that there is currently a demand for 20 million housing units in

India. Further, a significant number of the 115 million housing units across the
country will need reconstruction for improvement. Therefore a replacement market
will emerge, though currently original equipment sanitaryware market accounts for
nearly 90% of the market.

Suggestions:
 To increase the market share, company should spend modrate amount on
advertisement through local newspaper and television all across India.

 Need to increase the brand image and brand preference specially in

North-India, where companies market share is less than the other
competitors.

 To locate the production plant in the other states of India.

 To improve after sales services.

 Keep innovating product.

 To identify the opportunities due to upcoming boom in Reality sector.

 To launch flank products against the local sanitary products, whose

prizes are very low for giving them tough competition.

Note: One big problem that I had observed during training time, faced by sales

team, is shortage of supply. Many times it happned that orders got canceled

due to delay in supply, which is because of shortage of supply from the

production plant. This is a very serious problem, because due to it not only
we loose our order but also our long term reelations, with our clients also get

spoiled.