Tile industry in India - Present and future scenario

1. Tiles industry
A brief overview
By : Vikram D.

2.  The Indian ceramic tiles market size is estimated to have
been 172 billion INR in 2012 and is expected to reach 301
billion INR by 2016 growing at a CAGR of 15%.
 Ranked third globally and accounted for over 6% of the
total global production in 2012.
 Organised segment makes up approximately 50% of the
sector, and the top eight manufacturers constitute over
75% of the organised market .
 A large number of small or medium-scale manufacturers
operate in the unorganised segment, mainly through plants
in Gujarat.

3. Ceramic tiles market
segmentation
Ceramic tiles market size
and growth (INR billion)

4. Trends in the ceramic tiles
market in India
• Introduction of nanotechnology: Use of nanotechnology
helps enhance the shelf life and strength of the tile and can
make tiles resistant to dirt and bacteria. These tiles are
gaining popularity in areas where hygiene is important,
such as hospitals, laboratories, food processing plants, etc.
 Eco-friendly tiles: Usage of eco-friendly tiles is expected to
increase as consumers become more environment-
conscious. Recycled eco-friendly tiles are usually made
from natural and renewable substances.

5. Designer tiles and introduction of 3-D tiles: Titles are
now becoming a style statement and are used for bedroom
and living room walls as well. 3D tiles are also being used
for outdoor cladding, wall cladding, elevation, etc.
• Shift towards vitrified tiles: Vitrified tiles, comprising
nearly 50% of the ceramic tiles market have witnessed
robust growth in the last five years with increasing demand
due to their high durability and easy maintenance.

6. Top brands

7. Types of stores : Kajaria

8. Business Model
Dealership = 2-3 L | Distributorship = 5-10 L
depends on the brand
• margin for dealer and Cnf for dist/stockist
Dealer - max. 8%
C&F for Stockist - 3 to 5%
Company -> C&F or Distributor -> Dealer
• MoQ
Agreement differs from company to company
• The pain points
If the brand is established, then no problems.
New Brand -> depends on the sales team and products

9. • Average sales achieved
Dealer eg : Kajaria-> 10 L | Distributor -> 1 crore
Again depends on the brand and company
• Incentives given by cosmpanies
incentives on sales -> foreign trips, gold, electronic items, cash,
turnover discount, quantity discount.
• Credit period from dealer to distributor
Dealer - 15 days to 2 months
• Credit period for distributor from co.
Multinational companies - advance payment, generally
• Discounts offered by dealer to end customers.
Example Scheme - 1 free item on buying 10 items

10. Expected return matrix for network
partners based on risk (source : Kajaria)

11. THANK YOU !!!