Market Research Report : Ceramic Tiles Market in India 2013

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Market Research Report  : Ceramic Tiles Market in India 2013 Powered By Docstoc
					Ceramic Tiles Market ‐ India
February 2013
Executive Summary
                                                                       SAMPLE 
                Global ceramic tiles market was valued at xx bn sqm in 20‐‐ and is estimated to reach yy bn sqm by the year 
                 20‐, growing at a CAGR of x% during the same period
  Market        The Indian ceramic tiles market size is around INR A bn in 20‐ and is expected to reach INR B bn by 20‐
                Globally India is the third largest country in terms of Ceramic tiles production 

               Drivers                                                                    Challenges
                   – Boom in real estate sector                                               – Tough competition from unorganized 
                   – Rapid urbanization and increasing income                                   players
  Drivers &        – Untapped market potential                                                – Import of Cheap Tile from China
 Challenges        – Replacement market                                                       – Rise in Power and Fuel Costs




                Introduction of Nanotechnology                                            Shift to Vitrified Tiles
                Eco‐friendly Tiles                                                        Large Distribution Network
   Trends       Designer Tiles                                                            Merger and Acquisition
                Introduction of 3D


                                                                           Major Players

Competition                   Player A                                         Player B                                Player C
                              Player D                                         Player E                                Player F


                                            CERAMIC TILES MARKET IN INDIA 2013.PPT                                                    2
•Introduction
•Market Overview
•ICCTAS
•Import & Export
•Drivers & Challenges
•Trends
•Major Concern
•Competitive Landscape
•Strategic Recommendations
•Appendix
  CERAMIC TILES MARKET IN INDIA 2013.PPT   3
Definition and Market Scope

                                                    Definition
                                                                    SAMPLE 
   • Ceramic tiles mainly find its usage for covering roofs, walls and floors, wherein it is mainly made from 
     hard‐ wearing material like ceramic, stone, metal or glass
   • Clay which happens to be one of the most important material required for its production is generally 
     imported from Rajasthan



                                               Ceramic Tiles



     Wall tiles                      Floor tiles                         Vitrified tiles       Industrial tiles


         A%                                                                      C%                 D%
                                      B%




                                                                        Scope of the report 


                                        CERAMIC TILES MARKET IN INDIA 2013.PPT                                    4
Domestic market is set to witness increased growth in
coming years with increasing aesthetic sense of consumers
Indian Market – Overview                                                  Market Split – 20‐‐
• Indian ceramic tiles market ranked third globally and 
  accounted for xx% of the total global production in 
  20‐‐


                                                                                 LE  
                                                    P
• The market size was valued at INR yy bn in 20‐‐                                                              B

• Cumulated investments during the period 20‐‐‐20‐‐


                                                   M
                                                                                          A
  stood at INR mm bn 



                                                 SA
• Presently around z players in the organized segment 
  account for s% of the market share in India 

Market Size and Growth (Volume)                                             Market Size and Growth (Value)


 1.2                                                     h               400
 1.0                                              g                                                                                  h
                                           f                             300                                                  g
 0.8                                e                                                                                  f
                             d                                                                                  e
 0.6                  c                                                  200                             d
         a     b                                                                                  c
                                                                                   a       b
 0.4
                                                                         100
 0.2
 0.0                                                                        0
       20‐‐   20‐‐   20‐‐   20‐‐   20‐‐   20‐‐   20‐‐   20‐‐                     20‐‐     20‐‐   20‐‐   20‐‐   20‐‐   20‐‐   20‐‐   20‐‐

                                                 CERAMIC TILES MARKET IN INDIA 2013.PPT                                                  5
Drivers & Challenges – Summary 


                                   SAMPLE 
                                                                     Challenges
                                                                     Tough Competition from Unorganized 
  Drivers                                                            Players 
  Boom in Real Estate Sector                                         Import of Cheap Tile from China
  Rapid Urbanization and Increasing 
  Income                                                             Rise in Power and Fuel Costs

  Untapped Market Potential

  Replacement Market




                                       CERAMIC TILES MARKET IN INDIA 2013.PPT                              6
Continuous growth witnessed in the Indian real estate 
sector …
Boom in Real Estate Sector (1/4)                                                                                   Impact
• Growth of ceramic tiles market is directly associated 
  with the development of the real estate sector
• It is expected that demand for real‐estate sector will 
  grow at a CAGR of hh% between 20‐‐‐20‐‐, which will 

                                                                                  LE  
                                                                            Pune ,Ahmedabad and 
                                                                             Mumbai, Bangalore, 
  stimulate the market in the ensuing years 

  alone 
                                                  MP
• k% of the demand will arise directly from Tier 1 cities 
                                                                           Hyderabad are expected 
                                                                              to see maximum 
                                                                             appreciation in 20‐‐




                                                SA
• Increasing requirement of space from various sectors 
  like healthcare, education, IT, telecom, hospitality etc 
  make the real estate a profitable sector for players


                                                                       Real Estate Market Size (Value )
                          Commercial Sector
    SEGMENTTION




                          Residential sector
                                                                   8                                                   e
                                                                                                             d
                             Retail Space                          6                                  c
                                                                                          b
                           Hospitality Space                       4         a

                                                                   2
                        Special Economic Zone
                                                                   0
                                                                           20‐‐          20‐‐        20‐‐   20‐‐      20‐‐
                                                CERAMIC TILES MARKET IN INDIA 2013.PPT                                       7
Soaring prices of fuel along with power makes 
transportation cost unfavorable
Rise in Power and Fuel Costs                                                                                               Impact

• Rise in fuel prices adds to the transportation cost of the Ceramic tiles 
  products, increasing the overall expenses of the manufacturers
    For example, Government increased v% of the price of natural gas which adversely 

                                                                                       LE  
     affect the industry



                                                        MP
    This price hike increased the budget of the industry by INR f mn to h mn per  
                                                                                                Fuel prices are directly linked with 



                                                      SA
     ceramic unit of MORBI, which many units cannot afford
                                                                                                       the prices of crude oil
• Further, hike in power tariff has affected production cost of ceramic tiles 
 From 1st Jul, 20‐‐ there is j % hike in power tariff in Delhi                                     Price of Crude Oil
    In May 20‐‐, Karnataka increased power tariff by average h paise/unit

                                                                                                      Price of Fuel
                         Rise in Crude Oil Prices

                                                                                                  Transportation Cost

   6,000
   4,000                                                                                           Total Expenditure
   2,000
      0
                                                                                                     Profit Margin
     2009 Dec       2010 Dec      2011 Dec       2012 Dec        2013 Jan
                                                                                                                      Increase   Decrease

                                                       CERAMIC TILES MARKET IN INDIA 2013.PPT                                           8
Key Trends
                           SAMPLE 
                 Introduction of hh


                 Eco‐friendly tiles


                 X tiles


             `   Introduction of gg
    Trends
                 Shift towards ff


                 Large A Network


                 Merger and Acquisition



                             CERAMIC TILES MARKET IN INDIA 2013.PPT   9
Public: Domestic Company – Player A (1/3)
Company Information                                                       Offices and Centres – India 
                        Player A
Corporate Address       5th Road, 6th Street, 
                        City A – 700 xxx
Tel No.                 91 22 6679 xxxx
Fax No.                 91 22 6679 xxxx
Website
Year of Incorporation
                        www.playera.com
                        19‐‐

                                                                      LE  
Ticker Symbol
Stock Exchange
                        53xxxx (BSE)



                                           MP
                        Bombay Stock Exchange                                        City X               Head Office


Products and Services
Category                                S
                        Products/Services
                                          A                               Key People
                                                                          Name                           Designation
                                                                          Person A                       MD
                                                                          Person B                       CFO

                                                                          Person C                       CEO




                                                 CERAMIC TILES MARKET IN INDIA 2013.PPT                                 10
                                       SAMPLE 
 Public: Domestic Company ‐ Player A (2/3)
 Financial Snapshot                                                               Key Ratios
                                                                                                                  y‐o‐y change 
                    Total Income        Net Profit/Loss INR mn                              Particulars                         2012       2011     2010        2009
    INR mn                                                                                                          (2012‐11)
                                                   35,858.4                       Profitability Ratios
40,000                               34,381.0                     3000
                          28,803.1                                                 Operating Margin                   ‐0.19      8.78%     8.97%      7.61%     8.01%
30,000                                                                             Net Margin                         0.06       6.54%     6.48%      5.76%     6.24%
          20,836.4                                                2000
20,000                                                                             Profit Before Tax Margin           ‐0.15      8.44%     8.58%      7.77%     8.13%
                                                                  1000             Return on Equity                   0.48       15.42%    14.94%   13.74%     13.07%
10,000
                                                                                   Return on Capital Employed         1.52       14.71%   13.18%    13.53%     13.95%
     0                                                            0                Return on Working Capital        ‐11023.91
                                                                                                                                     ‐
                                                                                                                                          50.35%    46.22%     36.95%
                                                                                                                                10973.56%
             2009          2010        2011          2012                          Return on Assets                   0.32        8.27%    7.95%      8.07%     8.62%
 Financial Summary                                                                 Return on Fixed Assets             4.55       16.76%    12.20%   19.68%     23.75%

                                                                                  Cost Ratios
• The company earned a net profit of INR 2,345.9 mn in FY 2012, as
                                                                                   Operating costs (% of Sales)       0.19       91.11%    90.92%   92.34%     91.90%
  compared to net profit of INR 2,228.7 mn in FY 2011
                                                                                   Administration costs (% of 
                                                                                                                      17.24      17.24%    0.00%      6.07%     8.64%
• The company reported total income of INR  35,858.4 mn in FY 2012,                  Sales)
  registering an increase of 4.3% over FY 2011                                     Interest costs (% of Sales)        0.03       1.65%     1.62%      0.68%     1.12%

• The company earned an operating margin of 8.78% in FY 2012, a                   Liquidity Ratios
  decrease of 0.19 percentage points over FY 2011                                  Current Ratio                    ‐48.94%       1.00      1.95      1.82      2.13
                                                                                   Cash Ratio                       ‐43.37%       0.26      0.47      0.63      0.83
• The company reported debt to equity ratio of 0.86 in FY 2012, a 
                                                                                  Leverage Ratios
  decrease of 1.63% over FY 2011
                                                                                   Debt to Equity Ratio              ‐1.63%       0.86      0.88      0.70      0.52

 Key Financial Performance Indicators                                              Debt to Capital Ratio            ‐20.15%       0.27      0.34      0.24      0.17
                                                                                   Interest Coverage Ratio           ‐3.90%       5.39      5.61      11.27     7.20
             Indicators                     Value (09/01/2013)                    Efficiency Ratios
 Market Capitalization (INR mn)                       xx                           Fixed Asset Turnover              35.97%       2.53      1.86      3.39      3.77

 Total Enterprise Value (INR mn)                      xx                           Asset Turnover                    3.01%        1.25      1.21      1.39      1.37
                                                                                   Current Asset Turnover            36.26%       5.10      3.74      3.59      3.11
 EPS (INR)                                            xx
                                                                                   Working Capital Turnover        ‐21677.73%   ‐1655.74    7.67      7.97      5.86
 PE Ratio (Absolute)                                  xx
                                                                                   Capital Employed Turnover         2.23%        2.33      2.28      2.37      2.07
                                                                                                                                           Improved           Decline

                                                           CERAMIC TILES MARKET IN INDIA 2013.PPT                                                                 11
Public: Domestic Company – Player A (3/3) 
Key Business Segments                                       Key Geographic Segments

          A                                                                 B

100%                                                        100%

                               X                                                      X



                                                                        
50%                                                          50%


 0%
           20‐‐

                                      P
                                                              0%

                                                                    LE      20‐‐


Business Highlights

Description             News
                                   SAM
Overview



Network


Expansion Plan


                                   CERAMIC TILES MARKET IN INDIA 2013.PPT                 12
Private: Domestic Company – Player 2 (‐/‐)
Company Information                                             Offices and Centres – India 

Corporate Address


Tel No.


                                                                     E  
                                           L
Fax No.

Website

                                         P
                                        M
Year of 
Incorporation
                                                                                                  India Office
Products and Services

      Category
                                     S A
                        Products/Services
                                                                Key People
                                                                                 Name            Designation
                                                                Person 1                   D1 
                                                                Person 2                   D2 
                                                                Person 3                   D3 




                                      MOBILE INTERNET MARKET IN INDIA 2012.PPT                                   13
Private: Domestic Company – Player 2 (‐/‐)
Financial Snapshot                                                       Key Ratios
                                                                                                         y‐o‐y change 
                                                                                  Particulars                          2011        2010     2009        2008
 Total Income            Total Income                      Profit                                          (2012‐11)
   INR mn                Profit / Loss                    INR mn          Profitability Ratios
                                                   W                      Operating Margin                  ‐1.10     14.68%      15.78%    16.93%      19.72%
                                                                          Net Margin                        ‐0.91     13.23%      14.14%    15.55%      18.61%

                                          V                               Profit Before Tax Margin          ‐0.83     15.25%      16.08%    17.46%      20.62%
                                                                          Return on Equity                   7.60     60.51%      52.91%    34.43%      47.18%




                                                                                     
                                                                          Return on Capital Employed         8.09     67.13%      59.05%    37.48%      49.96%
                                                                          Return on Working Capital         75.43    150.07%      74.64%    44.18%      58.13%




                                                                                  E
                         U                                                Return on Assets                   3.58     24.34%      20.77%    18.93%      24.74%




                                                       L
                T                                                         Return on Fixed Assets            28.31    319.77%      291.46%   227.97%     346.05%
    0                                                          0          Cost Ratios



                                                     P
            20‐‐        20‐‐             20‐‐     20‐‐                    Operating costs (% of Sales)       1.06     85.23%      84.17%    82.96%      80.08%
                                                                          Administration costs (% of 
                                                                                                             0.49     10.10%       9.61%     9.11%       7.41%
Financial Summary                                                           Sales)




                                                    M
                                                                          Interest costs (% of Sales)        0.01     0.01%        0.00%     0.00%       0.01%

• Company incurred a net profit of INR ‐ bn in FY 20‐‐, as                Liquidity Ratios



                                                   A
  compared to net profit of INR ‐ bn in FY 20‐‐                           Current Ratio                    ‐12.79%     1.27         1.46     1.95        1.90




                                                 S
                                                                          Cash Ratio                        ‐8.37%     0.60         0.65     1.21        1.18
• It reported total Income of  INR ‐ bn in FY 20‐‐, as                    Leverage Ratios
  compared to INR ‐ bn in FY 20‐‐                                         Debt to Equity Ratio              ‐4.03%     1.49         1.55     0.82        0.91
                                                                          Debt to Capital Ratio              NA         NA          NA        NA          NA
• The company earned an operating margin of ‐ per cent in 
                                                                          Interest Coverage Ratio          ‐82.25%    2219.40     12502.34 11161.05     2901.67
  FY 20‐‐, a decrease of ‐ percentage points over FY 20‐‐
                                                                          Efficiency Ratios
• The company reported debt to equity ratio of ‐ in FY 20‐‐,              Fixed Asset Turnover              16.94%     24.03       20.55     14.57       18.41

  an increase of ‐ per cent over FY 20‐‐                                  Asset Turnover                    24.95%     1.83         1.46     1.21        1.32
                                                                          Current Asset Turnover            45.65%     2.41         1.65     1.38        1.46
                                                                          Working Capital Turnover         114.30%     11.28        5.26     2.82        3.09
                                                                          Capital Employed Turnover         21.89%     4.55         3.73     2.20        2.51

                                                                                                                               Improved       Decline

                                                  MOBILE INTERNET MARKET IN INDIA 2012.PPT                                                                 14
Private: Domestic Company – Player 2 (‐/‐)
Key Recent Developments

Description          Details



Overview




                                                              E  
Projects



                                   P L
                                 AM
                               S
                               MOBILE INTERNET MARKET IN INDIA 2012.PPT   15
Appendix

Ratio                          Calculations                             Ratio                        Calculations
                               (Operating                                                            Current Assets / Current 
Operating Margin                                                        Current Ratio
                               Income/Revenues)*100                                                  Liabilities 

Net Margin                     (Net Profit / Revenues) *100                                          {(Cash & Bank Balance + 
                                                                        Cash Ratio                   Marketable Securities) / Current 
                               (Income Before Tax / Revenues                                         Liabilities)} 
Profit Before Tax Margin
                               *100 
                                                                                                     Total Liabilities / Shareholders 
                                                                        Debt to Equity 
                               (Net Income / Shareholders                                            Equity 
Return on Equity (ROE) 
                               Equity)*100 
                                                                                                     {Total Debt / (Shareholders 
                                                                        Debt to Capital Ratio
                               EBIT / (Total Assets – Current                                        Equity + Total Debt)} 
Return on Capital (ROCE) 
                               Liabilities)*100 
                                                                        Interest Coverage Ratio      EBIT / Interest Expense
Return on Working Capital      (EBIT / Working Capital) *100
                                                                        Fixed Asset Turnover         Sales / Fixed Assets 
Return on Assets               (EBIT / Total Assets)*100 
                                                                        Asset Turnover               Sales / Total Assets 
Return on Fixed Assets         (EBIT / Fixed Assets) *100 

                               (Operating Expenses / Sales)             Current Asset Turnover       Sales / Current Assets 
Operating Costs (% of Sales)
                               *100 

Administration Costs (% of     (Administrative Expenses / Sales)        Working Capital Turnover     Sales / Working Capital 
Sales)                         *100 
                                                                                                     Sales / (Shareholders Equity + 
                                                                        Capital Employed Turnover 
Interest Costs (% of Sales)    (Interest Expenses / Sales) *100                                      Total Debt)



                                                  SANITARYWARE MARKET IN INDIA 2012.PPT                                              16
Sources of Information

                                SAMPLE 
                                         PRIMARY RESEARCH
                                                 Interviews
                             Leading Industry Retailers and Distributors
                                              Industry Experts


                                       SECONDARY RESEARCH
              Print Media                                                      Electronic Media
           Leading Newspapers                                                    Open Sources
         Magazines and Journals                                         Online Consumer Goods Magazines
       Annual Reports of Companies                                             Company Websites
                                                                              Premium Databases




                                     CERAMIC TILES MARKET IN INDIA 2013.PPT                               17
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                                                     CERAMIC TILES MARKET IN INDIA 2013.PPT                                                  18

				
DOCUMENT INFO
Description: For the complete report, get in touch with us at: info@netscribes.com The Ceramic Tile Market in India is showing remarkable growth owing to the booming real estate sector along with the rising disposable income of the consumers. Consumers are becoming style conscious and this aesthetic sense of the consumers is leading to its increased consumption. Moreover, the user industries of ceramic tiles are also growing steadily due to its price competitiveness compared to marble leading to its increased demand from these sectors. This is further aided with the availability of ceramic tiles in various designs and different price slabs at various retail points along with the increased per capita income amongst the consumers. All these factors are indicating towards the bright future of Indian ceramic tiles industry in the coming years. The report begins with an introduction, classifying the ceramic tiles into wall tiles, floor tiles, vitrified tiles and industrial tiles. Then there is a brief evolution history of ceramic tiles and lastly the manufacturing procedures of ceramic tiles. The Market Overview section provides a brief snapshot of the global and Indian ceramic tiles market. To begin with, it shows the global market size of ceramic tiles along with the globally top six major player’s production volume .After that there is details of the market size and growth of ceramic tiles market in India. The market share of organized and unorganized players is also shown. Subsequently a brief overview followed by market share of major players is demonstrated. Then a brief overview of the zone wise demand and supply of the ceramic tiles in India is provided. A special mention of the ceramic tiles hub of Gujarat, Morbi is also there. Afterward, price wise we categorized the Indian ceramic tiles market.