Betting on India
Why then are we betting
bigger on India when we
have grown eight-fold in the
last ten years already? Why
are we betting bigger on
India when the country is
already the world’s seventh
largest economy?
For important reasons.
One,
India has announced
path-breaking investment
programmes namely the
Housing for All, Swachh
Bharat Abhiyaan, Smart City,
Atal Mission for Rejuvenation
and Urban Transformation
and Pradhan Mantri Awas
Yojana that promise growth
opportunities over the long-
term.
Two,
India is one of the
few countries with a third-
quartile median age of 27
years, which represents a
younger, ambitious and
forward-looking population.
As the internet penetration
deepens, we expect to see
consumption increase.
The proportion of people
employed in the country’s
workforce will continue
to rise. By 2030, India is
expected to constitute 28%
of the world’s workforce with
the worker-to-dependent
ratio expected to be 2.1 (1.4
in 1990). Besides, steady
urbanisation will graduate
labour markets from low-
paying agricultural jobs to
better-paying manufacturing
and service engagements.
Three,
we have seen that
consumption patterns begin
to evolve a little ahead of
income growth when the
earners are optimistic of
better times. Consumption
growth more than doubled
from 4% (1990-2002) to
11% (2003-2014); non-food
consumption increased from
53% of overall consumption
in 1990 to 69% in 2014
(Source: Euromonitor)
.
Four,
tiles, more importantly
the premium variants,
have become increasingly
affordable. The double-
charged vitrified tile that was
available for around
`
140 per
sq. ft. in 2008-2009 is now
available for around
`
50-60
per sq. ft. The price of glazed
vitrified tiles declined from
about
`
150-400 per sq. ft.
to about
`
60-150 per sq. ft.
This has been corresponded
by a sharp increase in
manufacturing capacities in
India: polished vitrified tile
capacity increased multi-
fold in just eight years. The
result is a complete product
democratisation across India
– enough for all.
Joint Managing Director
The proposed Goods
and Services Tax will
make tiles more af-
fordable and shift
the demand towards
branded tiles.
26
l
KAJARIA CERAMICS LIMITED
Mr. Chetan Kajaria
