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17
Annual Report 2011-12
16 Kajaria Ceramics Limited
“ASPIRATION.
AFFORDABILITY.
AVAILABILITY. THESE
THREE A’S WILL
ACCELERATE INDIAN
TILE DEMAND OVER
THE MEDIUM-TERM.”
15-minutes with the Management
The year 2011-12 was a challenging year for India Inc.
Diverse challenges surfaced sequentially. For instance,
inflationary headwinds led to hardening interest rates, euro
zone financial crisis, global economic fragility, and sharp rupee
depreciation against the US dollar. These factors resulted in an
industry-wide performance that was appreciably lower than
initial guidance.
For us, these adversities translated into a considerable increase
in key raw material prices, a sizeable hike in gas prices (due to
rising crude prices and rupee depreciation) and expensive tile
imports. Additionally, teething issues at our newly
commissioned vitrified tile facilities staggered our growth
prospects.