8/3/2019 Spartek Answer

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The ceramic tile industry had become so attractive that it had brought in a host of new

competitors who like spartek come start their business with overseas collaboration.

Sparteks spectacular success coupled with de-licensing were the main reasons for the

industrys attractiveness.

Spartek was yet in the process of completing its latest phase of expansion to 26000 TPA.

With the markets in India being so fragmented there was every chance that competitors could

create selective niches in the regional market which could prove disastrous for another

spartek expansion.

As such we feel that spartek should have gone for the diversification route in an alreadyovercrowded industry.

According to us the best target company for acquisition would be neveli tiles and ceramics

limited.

The company has a good brand name.

It has diversified operations in the fields of sanitaryware, ceramic-ware, stonepipes etc.

It has a very good presence in the southern states.

From the target companys point of view, spartek has the necessary expertise in the ceramic

tile industry where neveli has not been doing that great experiencing large cost and tome

over-runs as well as teaching troubles.

Financially the position of the company is not strong because of the losses and heavy

borrowings to finance the over-runs which might make them open to acquisition.

Jai Shah-M1045

Bhavesh Tank-M1051

Aniruddha Patil-P1040

Yograj Rajput-P1046