Forall thosepeoplewho
scrutinisedourBalance
Sheet toput their finger
onourcompetitive
advantage, here’saclue.
Youwon’t find it there.
When you grow your revenues consistently over the years, when you grow
operating and net profits faster than others in the space and when you emerge
more liquid in a cash-parched business environment, the external community
(analysts, shareholders, competitors among others) starts getting curious.
They start asking for your Balance
Sheet, wondering what that one reason
is that makes us what we are - the
fastest growing tile company in India.
Interestingly, the financial entry that
most seek is not there at all.
Because the heart of Kajaria’s
competitiveness is its brand, which
is not factored into conventional
accounting at all.
Over the last 25 years, Kajaria invested
significantly in its brand. It adopted
a novel strategy of target-based
branding, investing at the place
where it mattered, induced footfalls
and converted its conventional sales
outlets into attractive showrooms that
strengthened the conversion factor.
This consistent investment in
grassroots branding resulted in a 26%-
plus CAGR in revenue and 24%-plus
CAGR in EBIDTA over the last five years
leading to 2012-13.
Better still, we sold more than 70%
of our output to the retail purchasers
against the industry average of
50%, significantly insulating us from
economic and sectoral volatility.
From a time when people said
any company investing as much in
branding tiles was wasteful to a point
where Kajaria is the only tile company
in the world to be conferred the
‘Superbrand’ status for the sixth time in
succession.
Attitude prevails.
Attitude @ Kajaria
Realisation per sqm
(
`
)
2008-09
294
2009-10
292
2010-11
321
2011-12
330
2012-13
353
24
Kajaria Ceramics Limited
Annual Report
2012-13
25
YEARSOF
WORKINGWITH
ANATTITUDE
CELEBRATING
