CONSUMER AWARENESS ABOUT SAI RAM CERAMICS

The word "Ceramic" has originated from the Greek word, "Keramos", which means pottery. It
also relates to an ancient Sanskrit word whose root meaning is “to burn,” but it is predominantly
used to indicate "burnt stuff". Almost 10,000 years later, with the establishment of settled
communities, tiles were manufactured in Mesopotamia and India. The first instance of functional
pottery vessels being used for storing water and food is thought to be around 9,000 or 10,000
BC. Clay bricks were also made around the same time. The ceramics industry in India came into
existence about a century ago and has matured over time to form a industrial base. From
traditional pottery making, the industry has evolved to find its place in the market for
sophisticated insulators, electronic and electrical items. Over the years, the industry has been
modernising through new innovations in product profile, quality and design to emerge as a
modern, world-class industry, ready to take on global competition. Though there are a number of
large companies in the ceramics sector, small and medium enterprises (SMEs) account for more
than 50 per cent of the total market in India, offering a wide range of articles including crockery,
art ware, sanitary ware, ceramic tiles, refractory and stoneware pipes among others. Most of the
players are grouped together in clusters.
Over the last two decades, the technical ceramics segment has recorded an impressive growth
propelled by the demand for high-alumina ceramics, cuttings tools and structural ceramics from
the industry. Overall, the Indian ceramics industry has emerged as a major manufacturer and
supplier in the global market.
 Global Tiles Industry

There are three major regions in the world, namely, Asia, Latin America and European Union
(EU), that produce and export ceramic tiles in bulk. In 2008, they had jointly produced more than
87% of the global output. World production of ceramic tiles was 7565 million sq.mt. in
2008.China was the largest producer with a total production of 2200 million sq.mt. Spain and
Italy were the 2nd and 3rd largest producers with production of 635 million sq.mt. and 589
million sq.mt. respectively. India ranks at 5th position with production of 270 million sq.mt.,
which is around 2.5% of global production.The ratio between consumption and production has
been stable at around 94 per cent. Ceramic tile production has been increasing at a cumulative
rate of close to 6 per cent. Asia is the most signifcant region by production, as well as
consumption, accounting for more than 50 per cent of both. China is the leading country in the
production of ceramic tiles with a share of 33 per cent at a total production of 2,200 million
square metres, followed by Spain and Italy. Europe accounts for 30 per cent and USA accounts
for 14 per cent of the total global production of ceramic tiles. In terms of consumption the pattern
remains similar, with Asia accounting for 51 per cent, Europe for 26 per cent and USA
accounting for 18 per cent of the total global ceramic tile consumption.

Global Sanitaryware Industry

The global sanitary ware industry is estimated to be 187 million pieces and growing at about 7
per cent Y-o-Y. The main sanitaryware producing countries in the world are China, Italy,
Mexico, Brazil and Spain, which together account for about 35 per cent of global production
India, with a size of 6.7 million pieces, accounts for about 3.3 per cent of global production.
Penetration of sanitaryware in India-about 30 per cent, is much lower than even neighbouring
Asian countries, indicating signifcant growth potential for this sector in the Indian market. The
Indian sanitaryware market has been growing at about 10 per cent a year, as compared to the
global average growth of about 7 per cent.
Ceramic Tiles

INDIAN CERAMICS INDUSTRY

India’s ceramic tile industry emerged in the 1950s. 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. Vitrifed 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 organised and unorganised sectors
play a key role in the manufacturing of ceramic tiles 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
0.15 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 crore. 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.
MARKET SIZE OF THE INDIAN CERAMIC INDUSTRY
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
metres per Annum, which is quite low as compared to developed countries. 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 tonnes in 2004, to 215 million
tonnes in 2008, the demand has grown nearly two and a half times in the same period, from 97
Million tonnes to 207 million tonnes. Ceramic tiles are produced by organised, as well as
unorganised players. The share of production of organised players is around 55 per cent. The
organised sector is characterised by the existence of a few large players, such as H. & R.
Johnson, Kajaria Ceramics, Bell Ceramics, SPL, Spartek and Murudeshwar Ceramics,OCIL and
Nitco.

ORGANISED PLAYERS

Some of the major players of Indian ceramics industry are-

o Asian Granito (India) Ltd.

o Euro Ceramics Pvt. Ltd.
o H. & R. Johnson (India) Ltd.
o Kajaria Ceramics Ltd.
o Nitco Tiles Pvt.Ltd.
o Orient Ceramics And Industries Ltd.
o RAK Ceramics India Pvt. Ltd.
o SPL Ltd.

PRESENT MARKET SHARE OF TILE PRODUCER COMPANIES IN INDIA

A Brief Description of Major Players

Orient Ceramics Industries Ltd.

Headquartered at New Delhi, Orient was incorporated as a Public Limited Company on 18th
May 1977 for the manufacture of ceramic tiles with an installed capacity of0.4 Million sq.
mtrs. per annum which has now grown to 14 million sq. mtrs. per annum.Mr. Mahendra K. Daga
currently heads Orient Ceramics as Chairman & Managing Director with the credo of delivering
products of sustained excellence and superior quality.

Orient’s state of the art manufacturing unit at Sikandrabad (Bulandshar, U.P.) is spread across 40
acres of land and conforms to the IS 13753-56:1993 of BIS, ISO 10545-1/17 & ISO 13006
specifications. Orient has also been accredited with the ISO 9001:2000 certification for quality
control management.

Since inception, OCIL has been scaling new heights and has evinced a steady growth rate.
OCIL’s commitment to excellence and quality has earned it a wide and diverse customer base,
which spreads across Europe, South East Asia, Middle East and the SAARC countries.

It plans to diversify into importing and distributing other building material products. This shall
be accomplished through a strong network of over 800 dealers and 2500 sub-dealers spread all
over the country.

The operative keywords are:

• Quality

• Durability
• Aesthetic Appeal

Thus, it 'creates tiles with a distinct persona'.

OCIL is not just a tiles manufacturer but a company devoted to offer 'extraordinary wall and
floor solutions' to create and enliven exclusive designer homes and offices.

KAJARIA TILES:
It is the largest ceramic floor and wall tile manufacturer in the second most populous country in
the world. It is promoted by Mr. Ashok Kajaria and Kajaria Export Limited (Group Company) in
technical collaboration with Todagres, S.A., Spain. It commenced operation in 1988 in
Sikandrabad, (Uttar Pradesh) with an annual capacity of 1 MSM of floor tiles. It possesses an
annual installed capacity of
21 MSM across two facilities at Sikandrabad, (Uttar Pradesh) and Gailpur (Rajasthan). It has
been equipped with eight stock points, eight Kajaria World showrooms, 19 offices-cum-display
centres and 7,000+ dealers and sub-dealers on a pan-India basis. It is the most prominent Indian
ceramic tile brand with a favourable recall. The largest exporter of ceramic tiles in India. It has
unmatched product offering (wall, floor, vitrified, Spanish and Italian tiles). It has brand-
enhancing customers like Unitech, DLF, Parsvnath, Magarpatta, Sobha Developers, DSK, Mantri
Group,Prestige Group, Ansals, Hiranandani, Raheja Developers, Omaxe and EMAAR-MGF,
among others.

ASIAN TILES:
This company is the result of the dreams of three entrepreneurs, materialized with the grassroots
of passion, experience & dynamism… With starting a quest for excellence a decade ago, today

Asian tiles have blazed a trail in the tile industry. With humble beginning in the field of floor
tiles, today it has expanded till the horizon, covering almost each of the aspects of the industry.
Supported by vast man power along with mind power, Asian Tiles possesses the strength of over
3000 business associates spread across the nation. Asian is all set to reach the goal of supplying
world class product, through a network of 18 depots with display centres & ultra modern plant in
the ceramic zone of Sabarkantha, Gujarat, spread over an area of 2, 30,000 Sq. Mtr. and
production capacity of two plants is 32300 Sq. Mtr. Per day of tile. Asian has become India's
leading wall tile manufacturer in large format size, with the biggest size of 300 X 900 mm,
where we provide wall tiles of white body similar to European tiles, with the promise of
extremely accurate size control, to add brightness and depth to the glaze.

H & R JOHNSONS:

H. & R. Johnson (India) Limited is India's No. 1 tile company offering a wide range of wall and
floor tile products across various segments v.i.z. Wall, Floor, Vitrified, Exterior and Industrial.
The company also has diversified interests in sanitary ware and bathroom accessories. With a
vast portfolio comprising of 5 well-known brands in India (Johnson, Marbonite, Porselano,
Endura & Milano) the company provides the most innovative products of international standards
that is coupled with the best of pre and after sales service.

EURO CERAMICS:
Part of “Euro Group” Integral part of the Decorative industry in India.

Promoters:

Mr. Nenshi Shah: Mr. Talakshi Nandu : Mr. Kumar Shah : Mr Paresh Shah

Current Business Profile:

Vitrified Ceramic Tiles : 79,971 MTPA. Aluminium Extruded Sections

: 1800 MTPA Calcareous Tiles: 45,000 MTPA
Sanitary ware : 11,000 MTPA

Trading in Wall Tiles through a 100% subsidiary

Technology:

SACMI (For Vitrified Tiles & Sanitary ware)

Quality focus:

Vitrified Tiles : ISO 13006. Applied Consumer Services Inc.

Florida, U.S.A. VJTI, Mumbai Manufacturing facilities : ISO 9001:2000 certified
NITCO TILES:
A foundation laid on innovation. Since 1953.Going beyond the ordinary and leading by example
is a common tradition practised at Nitco. No wonder, the company is renowned and revered for
its revolutionary concepts, pioneering endeavours and premium products in the construction
industry for over five decades.Today, with its rich repertoire in offering unique Floor Tiles,
Mosaico, Wall Tiles and Marble, Nitco has gone to become the most preferred name and the
ideal choice of millions of house-holds and the real estate fraternity. An avant-garde at the core,
the company has continued to pioneer ground breaking innovations in all its offerings. Ceramic
Tiles, Vitrified Tiles, Pavers, Imported Marble, Engineered Marble, Intarsia- splendours of inlay
marble and Mosaico- artistic creations in mosaic rendered in stone, ceramic and marble, for
instance. Winning 13 Capexil awards for innovation and design is the perfect testament to all of
its achievements.

SOMANY TILES:
In the Indian tiles sector, Somany has achieved a clear leadership position by wholeheartedly
adopting forward thinking and an innovative and futuristic approach. Whether ceramic glazed
tiles, vitrified tiles, sanitary ware or porcelain floor tiles, Somany prides itself in being at the
very forefront of style and quality. From raw material imported from Italy and Spain, to the
constant endeavor to be the first to introduce new products in India, Somany has been, and will
always strive to be a dynamic leader in its field.
It began as a vision of things to come, and is today a trail-blazer that others follow. In 1969 Shri
H L Somany incorporated a company called Somany Pilkington's, which later became Somany
Ceramics Ltd. It was the power of a dream and the zeal to excel, that drove Shri H L Somany to
forge a path of unparalleled success for this company.

The dynamic leadership team in Somany not only spans three generations of able leaders, it also
brings together their staggering breadth of experience and wisdom. With Shri H L Somany at the
helm as Founder, Shri Shreekant Somany as the CMD and Shri Abhishek Somany as the JMD,
the company is heading towards an exciting phase of expansion and growth. This core leadership
team along with a large team of highly dedicated and talented people is continuously working
towards creating more value for all stakeholders. Their commitment to excel in every sphere and
to fuel growth in the core as well as new sectors has truly created a powerful vitality within the
company, both in mind and spirit.

In 1971 the very first unit of Somany started production in Kassar, Haryana. Since then Somany
has reached and surpassed many milestones – setting-up of second unit in 1981, buyout of all
equity shares by Somany's Indian promoters in 1994; achieving Government recognition for its
R&D Department in 1996 (a first in the tiles industry); getting ISO 9002 certification in 1998;
achieving ISO 14001 for environment friendly facilities, in 1999; ventured in retailing in 2007,
joint venture with Keraben under brand name “Synergy”, got patent for VC technology-a first
ever in Indian Ceramics industry and incorporation of HL Somany group.

Somany Global flagship retail showrooms are currently located in Delhi, Gurgaon, Ludhiana and
Mumbai, Pune and Indore. Many other retail showrooms are about to be opened in leading
centres. These showrooms cater to high-end customers and offer imported tiles as well as
exclusive Aquaware brand sanitary ware. A large network of Somany display centers are also
spread across the country.

A wide cutting-edge array of designs and material make up the inspiring Somany range of tiles.
Somany strives to bring its customers floor, wall, vitrified, ceramic, porcelain and innovative
tiles that are the very latest in the world. Somany prides itself in the sheer variety of design and
finish, and constantly looks to bring new

and trend-setting ideas into the tile industry. The futuristic patented VC Shield range of tiles
from Somany, are the world's most durable floor tiles. Created using the breakthrough, 'Veilcraft
technology', that creates a special layer on the tiles that keep them free from abrasion, scratches
and stains, these tiles retain the original glaze and finish for years. No wonder then, that these
tiles comprehensively outperform ordinary ceramic tiles including PEI grade 5 tiles.

Venturing into the burgeoning sanitary ware sector, Somany has already made major in-roads
into this market. With its range of high quality products and offerings under the brand name of
Aquaware, Somany is focusing on creating a niche for itself in this sector, by bringing in and
adopting the latest in design, concept and technology.

In the endeavor to bring the very best to customers, we source our raw material from as far as
Italy, Spain, and China besides Rajasthan, Uttar Pradesh, Madhya Pradesh and other major
centers in the country.

Somany has a production capacity of 15.7 million sq mt per annum from its Haryana and Gujarat
units. It has always focused on acquiring and leveraging the latest technologies and know-how.
A commitment to bring to life new ideas and design innovations is driven by the huge amounts
of funds invested in research and development. This has borne fruit in the form of Somany's
achievement of establishing the very first Government Recognized In-house Research &
Development Centre.

Somany has also brought in some ground-breaking technologies into the Indian market. Their
highly advanced Rotocolour Machine has the capacity to decorate ceramic tiles with glazes,
using a serigraphic decorating system that employs silicon cylinders. This integrated system that
optimizes decoration of tiles enables any kind of random design and also a marble effect. A truly
trend-setting achievement, it has helped Somany to set new industry benchmarks in quality and
production standards for ceramic tiles.
Another exceptional technological advantage has been achieved with Somany's new Laser
Guided Vehicle system. This cutting-edge material transportation system has automated the
movement of ceramic materials in the production system. The Laser Guided Vehicle facilitates
optimal and accurate handling, thereby minimizing rejection of in-process materials during the
production of tiles. All of this is a result of Somany's commitment to bring the best and the latest
to its valued stakeholders and customers in India.

INDUSTRY STATISTICS:

1. World production: 6900 Million sq.mt.

2. India's Share: 340 Million sq.mt..
3. World ranking (in production): 5
4. Per capita consumption: 0.30 sq.mt.
5. Global Industry Growth Rate:6%
6. Growth Rate (India Domestic15% Market):
7. Organized industry turnover (India): Rs 3000 crores
Glazed Wall Tile share: 40% Glazed Floor Tile share: 46%
Unglazed Vitrified Tile8% share:
Glazed Porcelain Tile Share: 6%
Unorganised Industry Turnover Rs 3500 crores Glazed Wall Tile share: 57%
Glazed Floor Tile share: 35%
Unglazed Vitrified Tile6% share:
Glazed Porcelain Tile Share: 2%
8. Investments in last 5 years: Rs 2000 crores
9. Organized sector:
Share of Production: 56%
No. of units: 16
Revenue (excise duty): Rs 300 crores
10. Unorganized sector:
Share of Production: 44%

No. of units: 200 (approx..) (70% based in Gujarat region)

Revenue (excise duty): Rs 350 crores per annum or
less
11. Job Potential: 50,000 direct 500,000 indirect

Export & Import Scenario

Apart from domestic demand, exports of ceramic tiles from India have also been increasing.
From a level of US$ 33.3 million in 2001-02, exports of ceramic tiles from India have gone up to
US$ 58.5 million in 2006-07, at a CAGR of 12 per cent. India exports tiles to other parts of Asia,
Africa and West Europe. The other main exports of ceramic products consist of chemical
porcelain and insulators, handicraft artware and stoneware crockery. Imports of tiles have gone
up rapidly in recent years, to almost match the level of exports. From around US$ 8.3 million in
2001-02, imports have gone up to nearly US$ 55 million in 2006-07, at a CAGR of 46 per cent.
Rising imports indicate the rapid growth in domestic demand for tiles, due to boom in real estate
construction.

Scope Of The Study

Ceramic tile comes under ‘Building Material Industry’. Over the years, Indian Building Material
Industry poised to grow at a fast pace of almost 16%/annum due to boom in real estate and
construction industry. Increase in income levels and availability of a range of financing options
for housing is enabling rapid growth in housing construction.In India, particularly in NCR
region, growth rate of building material industry is at very high and constantly growing. By this
project finding, we have been trying to catch the opportunities and demand of Sai ram ceramics
tile making for their commercial and residential needs in Madurai region. Also as marble prices
begin to pinch purses in these times of meltdown, tiles are making deeper inroads into urban
homes. And they are getting more designer makeovers to suit market demands.

Objective Of The Study

Our soul objective of this report confines with these facts-

• To know the nitty-gritty of Ceramic tile industry as much possible
• Determine the market size and potential of all the organise and unorganised players
• A comparative analysis among some major players of tiles industry , especially in
Madurai egion in terms of Quality, Brand Equity, Price and Customer Service.
• Further scope and opportunity analysis.