IMPROVED IN INDIA
IN THE PAST
DECADE DUE TO:
Improving rate of literacy
Increasing disposable income of the consumers
The improved standard of living is driving the demand growth
of sanitary ware products in the country
PRESENT SCENARIO IN INDIA
Market size: 1700 crores
Annual growth rate: 15-16%
Developing countries like INDIA
Huge market for
Largest toilet market globally in 2010
Exports to increase
Population Growth at
a significant rate
support to improve
income and education
Real estate sector
India is set to become
the second largest
consumer of sanitary
ware products in
Demand for Made in India Sanitary Wares in the International Markets:
China (Mainland), Nigeria, Hong Kong, Malawi, Nepal, Thailand, United States
Prominent Destinations to Source Sanitary Wares from India:
Majority of the sanitary companies have set up their plants in Rajasthan and Gujarat given the
availability of large quantity of raw material and low-priced labour there
ORGANIZED SECTOR VS UNORGANIZED SECTOR
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
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.
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.
Cera has been steadfastly moving towards its mission of becoming a total bathroom solution
In 2010, Cera took one more step towards its goal, commissioning its state-of-the-art faucets
facility where the focus will only be on new designs & innovation.
Equipped with the latest equipments like fully automatic core shooter, instant induction
furnace, channel type furnace with gravity die-casting machine and high tech equipments for
endurance testing, high pressure testing, plating thickness testing, faucets facility ensures
delivery of quality & consistency of its products.
Confirming to its tradition of being at the forefront of innovation, in a nationwide consumer
survey among 30,000 people conducted by Nielsen, Cera’s Snow White has been voted
Product of the Year in the sanitaryware category for 2011.
To achieve growth in the rapidly changing retail market in the country, Cera, has launched
its one of a kind Cera Style Studios in Ahmedabad, Bangalore, Chandigarh, Kolkata,
Cochin, Hyderabad and Mumbai.
With the opening of the Cera Style 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 Style Studios will complement its existing network of 600 dealers and 5000 retailers.
Several Bathrooms are displayed live, so that the customers can get a feel of Cera’s vast
range of products.
To increase penetration, along with Style Studio’s, Cera has launched several Cera Style
Galleries across the country which are Exclusive Cera Retail Centre.
Based in Kadi, Gujarat, Cera Sanitaryware Ltd. uses International 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 upgradations and modernizations to expand to 25,000 MTPA.
Cera now has Asia’s largest manufacturing plant, at Kadi in Gujarat. Cera Sanitaryware Ltd plans to
invest Rs 150 crore over the next two years on capacity expansion.
Sales Value (Crores)
Sand, Sandstone & Clay
Fittings & Accessories
Shri Vikram Somany - Chairman and Managing Director
Shri Vidush Somany - Executive Director
Shri Mahendrakumar Bhandari - Director - Technical
State Bank of India
ICICI Bank Ltd.
Having shown a growth rate of more than 25% for last 3 years, Cera Sanitaryware Ltd. today
is the fastest growing sanitaryware company in India with market share of 26%.
Sanitary Ware – including sensors
Shower Range – including steam shower rooms, pressure pumps
Novellini – Equipped panels, Complete cubicles, Hydro massage bathtubs, Shower enclosure
Personal Care – Hand dryer, Hair dryer, Perfume dispenser, Soap dispenser
Company (Cera Peer1 (Kajaria Peer2 (Somany
Long term debt
Net Fixed assets
Debt to Equity ratio
Growth in sales
Growth in net profit
Growth in assets
Price to Earnings = mcap/net profit
Price to book = mcap/shareholders funds
Return on Equity (ROE)
• High sales in this industry is due to increased demand. Cera, the third largest player in
sanitaryware products is expected to increase its turnover to approx Rs. 500 Cr in this
• PAT for Cera is high as compared to Somany with the higher EBIDTA due to
significant reduction in costs with the introduction of new sources and import
substitution of raw materials, colours etc.
• Cera is a more profitable company as compared to its peers, the average
depreciation is about 30-35% both the company and its peers.
• Overall low Debt/Equity ratio indicates a defensive approach by the industry. Out of
the three Somany Ceramics has been more aggressive in financing its growth with
debt and is a more risky choice.
• With the highest current ratio as compared to its peers, Cera is likely to meet its
short-term obligations efficiently.
• The growth in sales has not varied greatly among the three companies. The higher
sales growth for Kajaria Ceramics may be attributed to the expenses deployed for
selling and distribution.
• Both Cera Sanitaryware and Kajaria Ceramics have reported good growth in net
profit. This has led to the confidence of investors being retained.
• Although its peers have shown a decline in assets, Cera Sanitaryware has shown a
growth because of their expansion plans. Cera has embarked upon a three-year
rolling plan to invest Rs 150 crore to expand its current capacity.
• A high P/E ratio indicates that investors are expecting higher earnings growth from
the company in the future. As shown, investors see high growth prospects in
Kajaria, followed by Cera and Somany.
• A high P/B ratio indicates that investors have overvalued the stock; it also goes
hand-in-hand with a high ROE which is true in the case of Kajaria Ceramics.
• The ROE for Kajaria is high even though the net profit margin is only about 6%
because it has been able to sustain a 37% growth in sales even with a 9% decline
in assets. This indicates high operational efficiency.
• Well entrenched distribution system
• Automatic CNC & Polishing Machine
• Non- Conventional wind power
• R&D – Snow White Glaze, import
substitution of colors and raw
• Dia Mirza – Brand Ambassador
• After sale services
• Expansion of
2.7mn piece p.a.
• Shortage of
•Euro-zone Crisis can
from organized and
Outlook / Future Plans
• Total Home Solution
• 36 CERA Style Galleries
• CERA Style Studio – Andheri(W) , Mumbai & Gurgaon