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13
Annual Report 2011-12
Value-addition
In doing so, our
return on equity
and return on
capital employed
expanded
respectively over the
previous year.
255
bps and
634
bps
• We conserved energy through
innovative solutions across our
units
• We widened our manufacturing
footprint to service proximate
markets cost-effectively
Cost management
DESPITE KILLING
INFLATION.
DESPITE RUPEE
DEPRECIATION.
When inflation kicked in harder during 2011-12, the greybeards
adjusted their monocles and concluded that consumers would
now have lower surpluses to spend on interior accessories.
Tiles not excepted.
Similarly, when the Indian currency yielded ground to strong
international currencies, most finance teams fretted losing their
bonuses on account of higher raw material costs that would be
difficult to pass on to buyers leafing to lower bottomlines.
At Kajaria, we said we would continue to do as well as we
predicted through an effective control of one factor.
Knowledge.
12 Kajaria Ceramics Limited
• We commissioned a 6.00 MSM
value-added vitrified tile capacity
at Gailpur in March 2011, which
internalised margins and reduced
import dependency from this
product vertical
• We increased our focus on
marketing large format/value-
added tiles
• We introduced digital printing
technology in ceramic and glazed
vitrified tiles – our digitally printed
product basket includes ceramic
wall tiles (30x60 cms and 30x90
cms) with matching floor tiles
(30x30 cms), ceramic wall tiles
(15x45 cms), interlock tiles (30x45
cms) and the EternityHD Range
large format 60x60 cm GVT tiles,
among others