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Abstract:
Netscribes latest market research report titled Ceramic Tiles Market in India 2014tracks the long and rich history of ceramic tiles production, the modern manufacturing process of various types of tiles and the dynamic global ceramic tiles market. In this space, cost considerations have shifted manufacturing from Europe to Asia and China has become the largest producer, consumer and exporter in spite of not hosting the top three ceramic tiles manufacturers of the world. The report also notes the expanding production and consumption patterns of ceramic tiles in India, which is now the third largest producer in the world. Although India produces around 6% of the worlds ceramic tiles, heavy domestic consumption has limited export volumes to very limited levels. However, this is expected to change soon, with the country expected to produce 15% surplus ceramic tiles in year 2029.
The domestic market of ceramic tiles in India has undergone a vast change, with vitrified tiles now constituting half of the total tiles market. With the introduction of modern technology in designing and manufacturing, the market has opened up new segments such as 3D tiles, germ-free tiles and artistic designer tiles. Although unorganized players make up 50% of the total ceramic tiles market of India, the organized sector is fast outpacing the former, with breakthrough in innovation and strategic alliances. Moreover, India has among the lowest per capita consumption of ceramic tiles in the world, with low penetration of tiles in urban market and a virtually untapped but highly potential rural market. All these factors, coupled with declining manufacturing competitiveness of China, are set to drive the tremendous growth expected in the Indian ceramic tiles market.
Table of Contents:
Slide 1: Executive Summary
Macroeconomic Indicators
Slide 2: GDP at Factor Cost: Quarterly (2010-11, 2011-12, 2012-13, 2013-14), Inflation Rate: Monthly (Jul 2013 - Dec 2013)
Slide 3: Gross Fiscal Deficit: Monthly (Feb 2013 - Jul 2013), Exchange Rate: Half Yearly (Aug 2013 - Jan 2014)
Slide 4: Lending Rate: Annual (2008-09, 2009-10, 2010-11, 2011-12), Trade Balance: Annual (2009-10, 2010-11, 2011-12, 2012-13), FDI: Annual (2009-10, 2010-11, 2011-12, 2012-13)
Introduction
Slide 5: Definition and Market Scope
Slide 6: Manufacturing Process
Market Overview
Slide 7: Global Ceramic Tiles Market - Overview, Top Three Producers, Market Size and Growth (Value-Wise and Volume-Wise; 2013-2018e)
Slide 8: Indian Ceramic Tiles Market - Overview, market Structure (2013), Market Size and Growth (Value-Wise and Volume-Wise; 2013-2018e)
Slide 9: Market Share of Major Organized Players (2013)
Slide 10: Zone-Wise Demand of Ceramic Tiles - India
Slide 11: Zone-Wise Supply of Ceramic Tiles - India
Slide 12: Gujarat - Ceramic Tiles Hub
Slide 13: Ceramic Tiles Market Structure (Price-Wise)
2. 2
Executive Summary
Market
Drivers & Challenges
Competitive
Landscape
Indian ceramic tiles market size is an INR ‘m1’ industry, growing steadily at a CAGR of ‘p1’%
Globally, India is the ‘r1’th largest country in terms of ceramic tiles production
A formidable feature in this sector is the vast distribution network of players
Vitrified tiles market, a sub-set of the ceramic tiles market, has been growing at ‘p2’% over the last few years
Major Players
Company 1
Company 2
Company 3
Company 4
Company 5
Company 6
Trends
Introduction of Nanotechnology
Environment-friendly flooring
Designer tiles
Introduction of 3D tiles
Shift towards vitrified tiles
Larger distribution networks
Strategic alliances
Shift from Chinese sourcing to local production
CERAMIC TILES MARKET IN INDIA 2014.PPT
Regulatory Body
Indian Council of Ceramic Tiles and Sanitaryware (ICCTAS)
Drivers
Boom in real estate sector
Increase in disposable income
Untapped market potential
Replacement market
Challenges
Tough competition from unorganized players
Import of cheap tiles from China
Depreciation of Rupee and rise in energy costs
3. 3
•Macro-Economic Indicators
•Introduction
•Market Overview
•EXIM Data
•Drivers & Challenges
•Trends
•Regulatory Body
•Major Concern
•Competitive Landscape
•Strategic Recommendations
•Appendix
CERAMIC TILES MARKET IN INDIA 2014.PPT
4. 4
Economic Indicators (1/3)
11
12
13
14
15
b2
a2
Q1
d1
c1
b1
a1
Q4
c4
b4
a4
Q3
c3
b3
a3
Q2
d2
c2
INR tn
2010-11 2011-12 2012-13 2013-14
GDP at Factor Cost: Quarterly
Inflation Rate: Monthly
-2
-1
0
1
2
q
Jul 2013 - Aug 2013
p
%
Nov 2013 - Dec 2013
t
Oct 2013 - Nov 2013
s
Sep 2013 - Oct 2013
r
Aug 2013 - Sep 2013
CERAMIC TILES MARKET IN INDIA 2014.PPT
5. 5
CERAMIC TILES MARKET IN INDIA 2014.PPT
Definition and Market Scope
Ceramic Tiles
•Ceramic tiles are mainly used for covering roofs, walls and floors, and are usually made from hard- wearing materials like ceramic, stone, metal or glass
•Clay, which happens to be one of the most important materials required for production, is generally imported from ‘a1’
Definition
Wall tiles
Floor tiles
Vitrified tiles
Industrial tiles
‘p1’%
‘p2’%
‘p3’%
‘p4’%
Scope of the report
6. CERAMIC TILES MARKET IN INDIA 2014.PPT 6
Global Market – Overview
• Global ceramic tiles market is witnessing an increase
in demand due to changing lifestyle and increased
disposable income
• Manufacturing has now shifted to ‘a1’, ‘a2’ and ‘a4’
from ‘a5’ and ‘a6’ to reduce costs
• The top 3 producers are ‘c1’, ‘c2’ and ‘c3’
• ‘c4’ has replaced Italy as the world’s largest exporter
• As of 2014, ‘b1’ of ‘c5’ is the largest producer of
ceramic tiles in the world
Easy availability and maintenance of ceramic tiles is pushing
the global market by a large extent
v5 v6 v3 v4 v1 v2
0
2,000
4,000
6,000
8,000
INR bn
p1%
2013 2014e 2015e 2016e 2017e 2018e
w5 w6
w3 w4 w1 w2
0
5
10
15
20
2013 2014e 2015e 2016e 2017e
p2%
bn sq.m.
2018e
Note: Figures are for the respective calendar years Note: Figures are for the respective calendar years
Top Three Producers (2013)
Market Size and Growth (Value) Market Size and Growth (Volume)
u2 u3
u1
0
50
100
150
200
250
mn sq.m.
b1 b2 b3
7. CERAMIC TILES MARKET IN INDIA 2014.PPT 7
• Indian ceramic tiles market is valued at INR ‘m1’ and
is part of the INR ‘m2’ tiles industry
• It ranks ‘r1’ globally and accounted for ‘p1’% of the
total global production in 2013
• ‘p2’% of the total output originates from ‘r1’, with the
city of ‘r2’ being the principal supplier
• Presently around ‘n1’ players in the organized
segment account for ‘p3’% of the market share in
India
Domestic market is set to witness increased growth in
coming years with increasing aesthetic sense of consumers
Market Size and Growth (Value) Market Size and Growth (Volume)
a6
a5
a4
a3
a1 a2
0
100
200
300
400
INR bn
p6%
2013 2014e 2015e 2016e 2017e 2018e
b6
b5
b4
b2 b3
b1
0.0
0.5
1.0
1.5
2.0
2013 2014e 2015e 2016e 2017e
p7%
bn sq.m.
2018e
Note: Figures are for the respective calendar years Note: Figures are for the respective calendar years
Indian Market – Overview Market Structure (2013)
p4% p5%
Unorganized
Organized
8. CERAMIC TILES MARKET IN INDIA 2014.PPT 8
• Till 2011, India was a net importer of ceramic tiles
• In 2012, India clocked a production volume of ‘q1’
sq.m. of ceramic tiles against a domestic
consumption of ‘q2’ sq.m., securing a place among
countries with surplus production
• The production surplus has been rising steadily, as
domestic consumption has been growing at ‘r1’%
against the growth in production of ‘r2’%
• In 2014, India is expected to produce ‘q3’ sq.m., and
consume ‘q4’ sq.m. of ceramic tiles, thereby having a
surplus of ‘r3’%
• By ‘y1’, India is expected to have a surplus of around
‘r4’% of its production
• Since turning to a surplus country in 2012, ceramic
tiles exports from India have been rising steadily in
both value and volume terms
• Currently, the biggest markets for Indian tiles are ‘c1’
and ‘c2’
India has transformed…
Exports: Country-Wise Segmentation (2012)
Exports – Overview Exports: Country-Wise Segmentation (2013)
r8%
r9%
r7%
r6%
r5%
r10%
Country5
Country4
Country3
Country2
Country 1
Country6
r15%
r13%
r12%
r14%
r11%
r16%
Country5
Country2
Country4
Country1
Country3
Country6
9. CERAMIC TILES MARKET IN INDIA 2014.PPT 9
• Innovation in production technology has helped India
emerge as the ‘p1’th largest producer of ceramic tiles
• Since turning to a net surplus country in 2012, import
of ceramic tiles to India has been steadily witnessing
negative growth
• Local tiles industry is severely threatened by rise in
input costs coupled with cheaper imports from China
• To protect the local industry and ease the threat,
Government of India has intervened and now
regulates the import of tiles into India
• As a result of government intervention, the import of
tiles into India has significantly reduced in the past 2
years, although ‘c1’ is still the principal import
partner
India has transformed…
Imports: Country-Wise Segmentation (2012)
Imports – Overview Imports: Country-Wise Segmentation (2013)
r5%
r4%
r2%r 3%
r1%
r6%
Country 5
Country 4
Country 3
Country 2
Country 1
Country 6
r11%
r10%
r9%
r8%
r7%
2%
Country 5
Country 4
Country 3
Country 2
Country 1
Country 6
10. 10
CERAMIC TILES MARKET IN INDIA 2014.PPT
Drivers & Challenges – Summary
Drivers
Boom in real estate sector
Increase in disposable income
Untapped market potential
Replacement market
Challenges
Tough competition from unorganized players
Import of cheap tiles from China
Depreciation of Rupee and rise in energy costs
11. 11
`
Introduction of Nanotechnology
Environment-friendly flooring
Shift towards vitrified tiles
Trends – Summary
Key Trends
Larger distribution networks
Designer tiles
Introduction of 3D tiles
CERAMIC TILES MARKET IN INDIA 2014.PPT
Shift from Chinese sourcing to local production
Strategic alliances
12. 12
CERAMIC TILES MARKET IN INDIA 2014.PPT
Indian Council of Ceramic Tiles and Sanitaryware (ICCTAS) (1/2)
Objectives
Activities
Address : 4th Floor, PHD House, 4/2 Siri
Institutional Area, August Kranti
Marg,
New Delhi – 110016
Contact No : +91-11-26964238
Key People : Mr. A. K. Kajaria (Chairman)
Mr. P.N. Trivedi (Vice Chairman)
Brief Overview
13. 13
CERAMIC TILES MARKET IN INDIA 2014.PPT
Major concern (1/3)
Demand for ban on Feldspar and Quartz from India (1/3)
•‘c1’ has made demands to ban the export of two essential minerals Feldspar and Quartz
•These two minerals are the principal raw materials for manufacturing of ceramic tiles
•Moreover these are very rare minerals found in the sediments of the earth
•As per ‘c1’, total production of feldspar in India (including from unreported mines) reached ‘q1’ tons in ‘y1’, more than twice the official production figure for the year
•Moreover, based on official figures, ‘r1’%-’r2’% of the feldspar produced between ‘y2’ and ‘y3’ were exported out of India
•Depletion of these minerals cause import dependency of domestic ceramic industry which led to increase in price of ceramic tiles
•However this price rise has a negative impact on the survival of the domestic manufacturers and many of them were forced to shut-down
Raw material cost is ‘r3’% of the total production cost
14. 14
CERAMIC TILES MARKET IN INDIA 2014.PPT
Market Competition – Porter’s Five Forces Analysis
Competitive Rivalry
•x
Bargaining Power of Suppliers
•x
Bargaining Power of Buyers
•x
Threat of Substitutes
•x
Threat of New Entrants
•x
Impact
i4
Impact
i2
Impact
i1
Impact i3
Impact i5
15. 15
Competitive Benchmarking (1/5)
Public Trading Comparables
Company 1
Company 2
Company 3
Company 4
Company 5
Market Capitalization (INR bn)
Share Price (INR)
EV/EBITDA (x)
EV/Revenue (x)
PE Ratio
Note: Top 5 Public companies based on the Market Capitalization; Market Capitalization, Share Price and PE ratio is as of 17/06/2014
CERAMIC TILES MARKET IN INDIA 2014.PPT
16. 16
Company 2
Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3)
Competitive Benchmarking (2/5)
4.68 4.67
12.67
2.29
0.35
6.73
0
5
10
15
%
Company 1 Company 3
Operating Margin Net Margin
• Company 1 recorded operating margin of r1%, higher than both Company 2 and Company 3 which recorded operating
margins of r2% and r3% respectively
• Company 1 recorded net margin of r4%, higher than both Company 2 and Company 3 which recorded net margins of
r5% and r6% respectively
CERAMIC TILES MARKET IN INDIA 2014.PPT
17. 17
CERAMIC TILES MARKET IN INDIA 2014.PPT
Public: Company 1 (1/5)
Key People
Products and Services
Company Information
Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
Category
Products/Services
Tiles
Marble and Quartz
Name
Designation
Chairman and MD
MD and Director
CFO
Director
Head Office
H1
18. CERAMIC TILES MARKET IN INDIA 2014.PPT 18
Financial Snapshot Key Ratios
Financial Summary
• The company incurred a net profit of INR ‘m1’ in FY 2013, as
compared to net profit of INR ‘m2’ in FY 2012
• The company reported total income of INR ‘m3’ in FY 2013,
registering an increase of ‘r1’% over FY 2012
• The company earned an operating margin of ‘r2’% in FY 2013, a
decrease of ‘r3’ percentage points over FY 2012
• The company reported debt to equity ratio of ‘p1’ in FY 2013, a
decrease of ‘r4’% over FY 2012
Key Financial Performance Indicators
Indicators Value (17/06/2014)
Market Capitalization (INR)
Total Enterprise Value (INR)
EPS (INR)
PE Ratio (Absolute)
Particulars
y-o-y change
(2013-12)
2013 2012 2011 2010
Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets
Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)
Liquidity Ratios
Current Ratio
Cash Ratio
Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio
Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved Decline
Total Income Net Profit/Loss
b b
a
s
r
p
0
2,000
4,000
6,000
8,000
0
100
200
300
2011 2012 2013
INR mn INR mn
q
e
2010
Public: Company 1 (2/5)
19. CERAMIC TILES MARKET IN INDIA 2014.PPT 19
Key Business Segments Key Geographic Segments
Business Highlights
Description News
Overview
• The company was incorporated as ‘n1’ and later converted into public limited company as
‘n2’
• The company was renamed as ‘n3’ in ‘t1’
• Thereafter, it has changed its line of business from ‘b1’ to ‘b2’ and accordingly renamed as
‘n4’
• Company is a pioneer in the production of ‘b3’
Joint venture • Italian ceramic tiles company ‘n5’ formed a ‘r1’:’r2’ joint venture with the company
0%
50%
100%
2013
100%
Country 1
Country 1 is the only
geographic segment in which
the company has been
operating significantly for the
last 4 years
Public: Company 1 (3/5)
50%
0%
100%
2013
100%
It has been the only revenue
generating segment for the
last 4 years
Segment 1
Note: Business segments and geographic segments are based on revenues
20. 20
CERAMIC TILES MARKET IN INDIA 2014.PPT
Certifications and Awards
Year
Certifications
2013
2013
2012
2011
2009
Year
Awards
2012
2012
2010
2010
2007
2006
2005
2005
Public: Company 1 (4/5)
21. 21
T
O
W
S
CERAMIC TILES MARKET IN INDIA 2014.PPT
Public: Company 1 – SWOT Analysis (5/5)
22. 22
CERAMIC TILES MARKET IN INDIA 2014.PPT
Private: Company 2 (1/5)
Key People
Products and Services
Company Information
Offices and Centres – India
Category
Products/Services
Tiles
Name
Designation
Managing Director
Director
Director
Managing Director
H1
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Head Office
23. 23
Shareholders of the Company Ownership Structure
Name No. of Shares held
r1%
r2%
r4%
r3%
Note: AGM as of 29th Sep 2012
CERAMIC TILES MARKET IN INDIA 2014.PPT
Segment 2
Segment 1
Segment 4
Segment 3
Private: Company 2 (2/5)
24. CERAMIC TILES MARKET IN INDIA 2014.PPT 24
Financial Snapshot Key Ratios
Particulars
y-o-y change
(2012-11)
2012 2011 2010 2009
Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets
Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)
Liquidity Ratios
Current Ratio
Cash Ratio
Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio
Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved Decline
Financial Summary
• The company incurred a net profit of INR ‘m1’ in FY 2012, as
compared to net profit of INR ‘m2’ in FY 2011
• The company reported total income of INR ‘m3’ in FY 2012,
registering an increase of ‘r1’% over FY 2011
• The company earned an operating margin of ‘r2’% in FY 2012,
a decrease of ‘r3’ percentage points over FY 2011
• The company reported debt to equity ratio of ‘p1’ in FY 2012,
an increase of ‘r4’% over FY 2011
Private: Domestic Company – Company 2 (3/5)
Total Income Net Profit/Loss
a
b d
s
r
p q
0
500
1,000
1,500
0
10
20
30
INR mn INR mn
c
2010 2011 2012 2013
25. 25
CERAMIC TILES MARKET IN INDIA 2014.PPT
Business Highlights
Description
News
Overview
•The company is one of the most renowned brands in ‘i1’ industry
•It has a manufacturing plant ‘d1’ km from ‘a1’
•The modern imported plant has the capacity to produce around ‘q1’ sq.m. of ‘b1’ per day
Notable Clients
Certification
Private: Company 2 (4/5)
26. 26
T
O
W
S
CERAMIC TILES MARKET IN INDIA 2014.PPT
Public: Company 2 – SWOT Analysis (5/5)
27. 27
Thank you for the attention
CERAMIC TILES MARKET IN INDIA 2014.PPT
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