Justwhensceptics
questionedKajaria’s
volumesustainability,
weacquired
completeplants.
Kajaria opted for the latter. So instead
of setting up captive production
capacities and straining its balance
sheet in the process, Kajaria selected
to explore the lateral asset-light
alternative.
Of acquiring unbranded capacity,
working with trustable partners,
allocating select product lines to these
plants, controlling quality, marketing
them under its brand and delivering
products wider and faster.
Kajaria’s arrangement has emerged as
win-win for some valid reasons:
Enhanced availability of products
that are complementary
Enhanced competitiveness on
account of the partners’ established
culture of austerity
Derived volumes and revenue from
enhanced capacity from day one
Entered new geographies, an ability
to reach products faster to customers
and lower distribution costs
Stronger competitiveness
(capacity cost per MSM) as the
capacity acquisition cost is lower
Either you make everything you want to sell. Or you
partner with people who can do it for you so that you
may focus on branding, marketing, profitability and
creating a better company.
Attitude @ Kajaria
22
Kajaria Ceramics Limited
Annual Report
2012-13
25
YEARSOF
WORKINGWITH
ANATTITUDE
CELEBRATING
