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  • 1

    The Money Roller Live Make your Money Work

    By: Nitin Khurana

    Friday, July 9, 2015

    Research report on Tiles, Sanitary ware and Fitting Industry

    An in-depth analysis to measure the Industrys attractiveness

    An Initiative of The Money Roller

    Lal Bahadur Shastri

    Institute of

    Management,New

    Delhi

  • 2

    Executive summary

    The objective of this project was to understand the tile, sanitary ware and fitting industry together with the

    factors responsible for their growth. The industry as a whole has been growing at pace of 15-20% in the last

    four-five years, however with the renewed interest of the central government in clean India initiatives such

    as Swachh Bharat Abhiyan, has opened the doors for robust growth in this sector. This report tries to find

    out the growth potential of this sector, plus the companies which are most likely to be benefited from such

    initiatives.

    This report also includes the ground level research conducted by the TMR associates on sanitary ware

    products across eight Indian cities to enquire about the prices of various branded and non branded sanitary

    ware products. This research highlighted the price difference between the branded & unbranded products

    and how the branded players are preparing to reduce that price difference.

    At the end of this report we have tried to study CERA sanitary ware, which is the third largest sanitary ware

    manufacturer in India and is catching up fast with ROCA India to become the second largest sanitary ware

    manufacturer.

  • 3

    Market size of Tiles, sanitary ware and fittings Industry

    Market size of Ceramic Tiles - As per the Indian Council of Ceramic Tiles & Sanitary ware (ICCTAS) and

    PWC;

    Ceramic tiles industry has continued to grow at rate of 15% per annum in the last 5 years.

    The overall size of the Indian ceramic industry was approximately INR 17,200 crores in financial

    year 2012.

    It is ranked third globally and accounts for 6% of the total global production.

    The current size of the organized and unorganized sector is estimated to be about INR 7,200 and

    10,000 crores respectively.

    This is the testimony of the growth potential of this sector. Indian ceramic industry having huge production

    capacity which can contribute significantly in countries exports (presently insignificant) with proper

    planning and better quality control.

    Market size of Sanitary ware and Bathroom fitting Today Indias Sanitary ware and Bathroom fittings

    industry is estimated to be valued at a combined INR 8,000 crore, which was used to be an INR 6000 crore

    market two years ago.

    The industry has grown nearly 25% in the last couple of years.

    Today only 47% of the total population in India has access to sanitation facilities.

    The share of Sanitary ware segment is estimated to be valued around INR 2700 crore and the

    Bathroom fitting industry is estimated at approximately INR 5300 crore.

    The organised segment in the sanitary and bathroom fitting industry comprises of nearly 55%. As per the

    census 2011 data, 19% of urban homes in India do not have a toilet and this emphasises on the tremendous

    growth potential this segment have.

  • 4

    Industry growth in India

    (Our analysis)

    (Our analysis)

    (Our analysis)

    Ceramic tiles growth in India

    With the growth rate of 15%, the Indian Ceramic

    tiles industry which at present is valued at

    approximately INR 26000 crores is estimated to

    be valued at approximately INR 35000 crores in

    year 2017.

    As per Indian Council of Ceramic Tiles and

    Sanitary ware (ICCTAS)

    The world production of Ceramic tiles is

    11913 million sq. m. per annum with a

    growth rate of 11%.

    The Indian ceramic tiles industry share is

    750 million sq. m. per annum (6% of world

    production) with growth rate of 15%.

    It is estimated to account for 7% of the

    worlds production by 2017.

    It is one of the fastest growing Ceramic

    tile industries in the world.

    Sanitary wares and bathroom fitting growth in

    India

    With the growth rate of nearly 13%, the Sanitary

    ware and Bathroom fitting industry which at

    present is valued at approximately INR 8000

    crores is estimated to be valued at approximately

    INR 10000 crores in year 2017.

    The estimated revenue level for 2017 may be

    achieved sooner than estimated if the government

    0

    10000

    20000

    30000

    40000

    2012 2013 2014 2015 2016 2017

    Ceramic tiles Industry growth(estimated)

    Revenue(in crores)

    2014 2015 2016 2017

    India 750 862.5 991.875 1140.656

    World 11163 12390.93 13753.93 15266.86

    0 2000 4000 6000 8000

    10000 12000 14000 16000 18000

    Mill

    ion

    sq

    . m.

    Production

    0

    5000

    10000

    15000

    2013 2014 2015 2016 2017

    Sanitary ware and bathroom fitting industry growth(estimated)

    Revenue(In crores)

  • 5

    (Our analysis)

    successfully implements its Swachh bharat

    abhiyaan, wherein crores of rupees would be

    spend in construction of new sanitary facilities in

    rural as well as urban areas.

    Sanitary ware segment represents one third of

    total revenue, whereas Bathroom fitting

    represents two third of total revenue.

    2013

    2014

    2015

    2016

    2017

    Bathroom fittings

    4000.0 4520.0 5107.6 5771.5 6521.8

    Sanitary ware 2000.0 2260.0 2553.8 2885.7 3260.9

    0.00

    2000.00

    4000.00

    6000.00

    8000.00

    10000.00

    12000.00

    Re

    ven

    ue

    (in

    cro

    res)

    Comparative growth chart

  • 6

    Industry growth drivers:

    o Increasing level of income and growing

    spending rate

    (Source: IMF)

    (Source: World Bank)

    (Source: IBEF)

    When combined with the growing Income Per

    Capita (PPP), urbanisation rate, an increasing

    number of nuclear families and an increasing

    focus on spending, the consumer market potential

    is clear. The diversity in spending patterns, eating

    habits and lifestyle changes (focused on higher

    spending) in various parts of the country offer a

    sizable market for a range of industries wanting to

    set up their office in India.

    o Growth in real estate in India and rapid

    urbanization

    Due to the rapid urbanization, positive

    demographic and rising income level, the Indian

    real estate sector has attracted significant

    investments over the past few years which have

    directly or indirectly benefited the Ceramic tiles,

    Sanitation and Bathroom fitting industries.

    o Increasing awareness among consumers about

    hygiene and government initiatives; such as

    Swachh Bharat Abhiyaa.

  • 7

    List of players in India

    List of Ceramic tiles manufacturers in India List of Sanitary ware and bathroom fitting manufacturers in India

    Company Name State Company

    Name State Company

    Name State Company Name State

    Kajaria Delhi S'jegi Gujarat Cera Gujarat Rraghvir ceramics Gujarat

    Johnson (Sentini) Mumbai HSIL Gurgaon Grohe Gurgaon UDAY VITEROUS Gujarat

    RAK ceramics Mumbai simpolo Gujarat TOTO Gujarat DALWADI CERAMICS Gujarat

    Orient tiles Delhi Varmora Gujarat Delta Gurgaon SHREE VARIA TILES WORKS COMPANY Gujarat

    Asian granito Gujarat vita Gujarat Roca Chennai DOSHI CERAMICS Gujarat

    Murudeshwar ceramics ltd. Bangalore Nitco Mumbai GEM Delhi SWADES EXIMPS Gujarat

    Cengres tiles Gujarat AKW Gujarat Kohler Karnataka SANSO SANITARY Gujarat

    Euro ceramics ltd. Mumbai Silica Andhra

    Pradesh Kuldi Maharashtra SILVER CERAMICS Gujarat

    Antique Gujarat Impolo Gujarat Viega Maharashtra AONE HOUSE Gujarat

    Regent Gujarat Acer Gujarat Isenberg Maharashtra AGR-SANITARY

    PVT. LTD. TAMIL NADU

    graffiti tiles Gujarat

    MERO SANITATION PVT. LTD. Delhi

    Commander Gujarat

    Top three ceramic tiles player by

    turnover

    COTO CERAMICS Gujarat

    Restile ceramics ltd. Delhi

    SUNVIT Gujarat

    Coral gold Gujarat

    Kajaria

    Mulia brothers Gujarat

    Flecto series Gujarat

    Somany ceramics

    Wideangle sanitaryware Gujarat

    Coral vetrified Gujarat

    Asian granite

    Saniqua Delhi

    Small Johnson Gujarat

    Suryadeep ceramics industry Gujarat

    Soild Johnson Gujarat

    Top three sanitary ware player by

    turnover

    Paradise Sanitary ware Gujarat

    Somany ceramics Noida

    Jaquar

    K9 CERAMICS Gujarat

    HSIL

    Dron Bracht Mumbai

    SONATATILE Gujarat

    Roca India

    Sona ceramics Gujarat

    SONATA CERAMICS Gujarat

    Cera

    Hansgrohe Maharashtra

    eon interior products Delhi

    KEUCO Maharashtra

    swastik tiles Gujarat

    GEBERIT Bangalore

    Skylake ceramics Gujarat

    JOHNSON Maharashtra

    Arihant tiles Noida

    Villeroy & Boch Maharashtra

    Edge digital wall tiles Gujarat

    American Standards Mumbai

    Sungracis tiles Gujarat

    Bell sanitaryware Gujarat

  • 8

    Impact of Swachh Bharat Abhiyaan and Housing for all

    The Swachh Bharat Abhiyan or the Clean India Mission

    I