Relevance:
New tile
manufacturing capacities,
especially in the
unorganised segment are
getting added each year.
Optimism:
There are a
number of credible factors
that reflect on Kajaria’s
strength in marketing
growing volumes
seamlessly.
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manufacturing
capacities have
increased in each year
for the last decade, the
Company outsources
some products from
quality-conscious tile
manufacturers to meet
product demand.
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dealers are increasing
their showroom sizes
exponentially pan-
India – showcasing the
growing demand for the
Company’s products
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diversified
manufacturing
presence allows it to
effectively cater to a
pan-India demand while
optimising logistics
costs
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largest tile company in
India, its market share
is only 10%, which
suggests significant
headroom for the
Company over the
long-term
Can Kajaria sell growing volumes even
as competition intensifies?
Relevance:
As the base
has become large,
maintaining growth has
become challenging.
Optimism:
External
factors and relevant
business strategies
suggest that Kajaria’s
outperformance will
continue over the
medium-term. The
reasons for this are:
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addition, increasing
the proportion of large
tiles in the revenue
mix and widening
and deepening its
distribution network
are factors expected
to strengthen business
growth.
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perspective, Kajaria has
been at the forefront of
introducing new sizes,
designs and finishes,
which enable the
Kajaria brand to earn a
premium despite stiff
competition.
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perspective, its joint
venture route for
capacity addition,
growing diversity of
its manufacturing
presence and reduced
gas prices are expected
to make a meaningful
contribution to
profitability.
Can Kajaria continue to outperform
the industry in terms of growth and
profitability?
02
Relevance:
Offtake from
tile markets that are in
port hinterlands could be
impacted.
Optimism:
Even as there
was no anti-dumping
duty in the last two years,
Kajaria not only grew its
topline reasonably well
but also its bottom line.
Besides, the Government
has provisionally imposed
an anti-dumping duty on
tile import from China.
This is expected to
strengthen the growth
of the Indian tile industry
over the medium term.
Could the dumping of tiles by China
impact tile industry profitablity?
04
03
ANNUAL REPORT 2015-16
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