DIPESH PAARASHAR

8/2/2019 DIPESH PAARASHAR

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A

Project Study Report

On

POTENTIAL ANALYSIS OF MARKET SHARE

&

SATISFACTION OF DEALERS

Training Undertaken at

KAJARIA

Submitted in partial fulfilment for the

Award of degree of

Master of Business Administration

SUBMITTED BY: - SUBMITTED TO:DIPESH PARASHAR MS. BINDIYA TATER

MBA II SEM (LECTURER)

SHOBHASARIA ENGINEERING COLLEGE, SIKAR

SESSION:-2009-2011


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PREFACE

Learning categorizes you and practicing on that learning specializes you. Theoretical

concepts taught and discussed in the classroom prove useful if they have to remain

relevant. Practice orientation of management student is must generating competence to

deal with issues at grass root level it is for this reason that six week training project study is

prescribed as a part of syllabus for MBA PROGRAME in Sikar. This training is the mode of

imparting practical training to the student. The objective is to provide a deep insight into

practical aspects of the functioning of the organization. The train apprises the student to the

actual function, responsibility and problem faced by an organization. It provides him with the

knowledge of the various kind of problem that crop up in the day to day functioning of the

organization .The way they are solved by the departments and appraisal of the crucial

decision taken by the manager at the crucial time. I was fortunate enough to complete my

finance training at BHARAT ENGINEERING COMPANY. Bar-Pali road Raipur Marwar, (raj)

website [email protected] This has given me an altogether new experience, which

would be immense help to me in my future.


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ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, Ms.Bindiya tater, Lecturer, M.B.A

Department for guiding right form of inception till the successful competition of the

project. I sincerely acknowledge him for extending their valuable guidance, support

for literature, critical reviews of project and the report and above all the moral support

she had provided to me with all stages of this project.

I would also like to thanks the staff of M.B.A Department for their help and

cooperation throughout my project.

Dipesh Parashar


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EXECUTIVE SUMMARY

The project was undertaken to Potential analysis of market share and level of satisfaction

of dealer and sub- dealer of Kajaria and to adopt the best practices of the industry to serve

the customer. To accomplish the above, around 100 dealers and sub-dealers of Kajaria

ceramics limited JAIPUR was surveyed and interviewed. The core purpose of the survey

was to find out dealers perspective towards the mainly induction that are given to them. An

interview based on a questionnaire to know what does the customer feels in general

towards its organization. The idea behind the study is to adopt the best practices and to

eliminate the pitfalls of the system. The project is an approach is how to give feedback on

training method effectiveness in meeting the objectives of the organization.


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TABLE OF CONTENTS

1. INTRODUCTION OF INDUSTRAY 7

2. INTRODUCTION TO THE ORGNISATION..10

3. RESERCH METHODOLOGY............................................45

4. DATA ANALAYSIS AND INTERPERTATION.....................50

5.FACTS AND FINDINGS.....................................................55

6.CONCLUSION..................................................................69

7. SUGGESTIONS................................................................72

8. SWOT ANALAYSIS...........................................................76

9. BIBLIOGRAPHY...............................................................81


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INTRODUCTION OF

THE INDUSTRY


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History of TilesThe Latin word tegula and its French derivative tuile mean quite precisely a roof tile of

baked clay. The English tile is less precise, for it can in addition be used of any kind of

earthenware slab applied to any surface of a building. the word ceramic comes from the

Greek word keramos meaning pottery, it is related to an old Sanskrit root meaning to burn

but was primarily used to mean burnt stuff.

Historically, man has desired to create living spaces which were beautiful, durable and user

friendly. With that in mind, ceramic tile has been made by man for 4000 years. Beautiful

tiled surfaces have been found in the oldest pyramids, the ruins of babylon, and ancient

ruins of Greek cities. Decorative tilework was invented in the near east, where it has

enjoyed a longer popularity and assumed a greater variety of design than anywhere in the

world. During the Islamic period, all methods of tile decoration were brought to perfection in

Persia. In Europe decorated tiles did not come into general use outside Moorish Spain until

the second half of the 12th century. The tile mosaics of Spain and Portugal, the majolica

floor tiles of renaissance Italy, the faiences of antwerp, the development of tile iconography

in England and in the Netherlands, and the ceramic tiles of Germany are all prominent

landmarks in the history of ceramic tile

The technique of tile and its secrets of trade were safely guarded and orally handed from

father to son and master to student; thus rarely have designs, patterns and details of

technique been documented and few complete treatises exist on the art of tile work in the

past. each tile was hand-formed and hand-painted, thus each was a work of art in its own

right.

Simply defined, ceramic tile is tile made of clay. tiles were made by hand, in early days clay

bricks - made by flattening the clay and cutting pieces into shape were dried beneath the

sun or baked. Later the only mechanical aid was a wooden mould carved in relief, which

indented a pattern on the clay slab. The slab was dried and the impression filed with clay,

which after further drying was shaved flat. After the formation of the tile body, ceramic tiles


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go through a firing process in a kiln under very high heat to harden the tile body and to

create the surface glaze. Historically,

Unglazed tile was fired once. Glazed tile was fired twice. The first firing formed a tile body

calledbisque. The biscuit firing had the highest temperature at 1060 C that fixed the tiles

for size and shape. After glazing the tiles were fired at about 1020 - 1240 C. on glaze

decoration was fired at 750 C, just before the glaze began to melt. The modern tile industry

was advanced by reviving the lost art of encaustic tile making. The industry was further

revolutionized in the 1840s by the dust-pressing method which consisted of compressing

nearly dry clay between two metal dies. Dust-pressing replaced tile-making by hand with

wet clay, and facilitated mechanization of the tile-making industry.

Ceramic tile was used almost everywhere on walls, floors, ceilings, fireplaces, in murals,

and as an exterior cladding on buildings. Today automated manufacturing techniques are

used and the human hand does not enter into the picture until it is time to install the tile.

They are used in an almost infinite number of ways and you dont have to consider yourself

wealthy to own them. In commercial buildings, where both beauty and durability are

considerations, ceramic tiles will be found, particularly in lobby areas and restrooms. In fact

most modern houses throughout use Ceramic tiles for their bathrooms and kitchens and in

every vital area of the premise like floor, front elevation, roof, parking and places like

medical centres, labs, milk booths, schools, public conveniences, shopping malls and

numerous other centres .Ceramic tiles are also the choice of industry, where walls and

floors must resist chemicals. And the Space Shuttle never leaves Earth without its

protective jacket of high-tech, heat resistant tiles.


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Future of tile Industry

In order to maintain market growth, tile manufacturers will concentrate on developing and

promoting new tile products, including modular or cladding tile, larger-sized tile, slip- and

abrasion-resistant tile, and tile with a polished, granite or marble finish. This is being

accomplished through the development of different body formulations, new glazes, and

glaze applications, and by new and improved processing equipment and

Techniques. Automation will continue to play an important role in an effort to increase

production, lower costs, and improve quality. In addition, changes in production technology

due to environmental and energy resource issues will continue.

Global Tiles Industry

There are three major regions in the world, namely, Asia, Latin America and European

Union (EU), that produce and export ceramic tiles in bulk. In 2009, they had jointly

produced more than 87% of the global output. World production of ceramic tiles was 7765

million sq.mt. In 2009.China was the largest producer with a total production of 2200 million

sq.mt. Spain and Italy were the 2nd and 3rd largest producers with production of 635 million

sq.mt. and 589 million sq.mt. Respectively. India ranks at 5th

position with production of 270

million sq.mt, which is around 2.5% of global production.

The ratio between consumption and production has been stable at around 94 percent.

Ceramic tile production has been increasing at a cumulative rate of close to 6 per cent. Asia

is the most significant region by production, as well as consumption, accounting for more

than 50 per cent of both. China is the leading country in the production of ceramic tiles with

a share of 33 per cent at a total production of 2,200 million square metres, followed bySpain and Italy. Europe accounts for 30 per cent and USA accounts for 14 per cent of the

total global production of ceramic tiles. In terms of consumption the pattern remains similar,

with Asia accounting for 51percent, Europe for 26 per cent and USA accounting for 18 per

cent of the total global ceramic tile consumption.


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Ceramic tiles as a product segment has grown to a sizeable chunk today at 340 MillionsSquare meters production per annum. However, the potential seems to be great,particularly as the housing sector, retail, IT & BPO sectors have been witnessing an

unprecedented boom in recent times. The ceramic tiles sector has been clocking a robustgrowth of 12-15% consistently over the last few years. Today, India figures in the top 5countries in the world manufacturing ceramic tiles.

The key drivers for the ceramic tiles in India are the boom in housing sector coupled bygovernment policies fuelling strong growth in housing sector. The retail boom in the Indianeconomy has also influenced the demand for higher end products. Overall the bullishgrowth estimates in the Indian economy has significantly influenced the growth of the IndianCeramic tile industry.

The main product segments are the Wall tile, Floor tile, Vitrified tile and Porcelain tile

segments. The market shares are 35%, 53% and 12% respectively for Wall, Floor &Vitrified/Porcelain tiles. The tiles are available in a wide variety of designs, textures andsurface effects. They cater to tastes as varied from rustics to contemporary marble designsin super glossy mirror finishes.

Both, traditional methods of manufacturing (tunnel ) and the latest single fast firing methodsare deployed in manufacturing. Some of the latest trends in manufacturing methods can beseen in India.

The investments in the last five years are approx. Rs 2000 crores. The industry also enjoysthe unique distinction of being highly indigenous with an abundance of raw materials,

technical skills, infrastructural facilities despite being fairly capital intensive. A total of over5,50,000 people are employed in the sector. Out of this, 50,000 people are directly


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employed and 5,00,000 are indirectly associated. The potential is huge considering the percapita consumption of ceramic tiles in India. Currently it is at 0.30 square meters per personin comparison to over 2 square meters per person for like countries like China, Brazil and

Malaysia

Current status of the IndustryThe ceramic tiles industry in India has followed similar trends internationally which have

been characterized by excess capacities and falling margins. Countries like Malaysia,

Thailand, Indonesia, Sri Lanka and Vietnam are setting up their own plants. China has

emerged as a major competitor. Producers from Spain and Italy have the advantage of

lower transportation costs while exporting to USA and Germany. In India, the per capita

consumption is as low as 0.30 square meters per person compared to China (2 square

meters per person), Europe (5 to 6 square meters per person) or Brazil (2.5 square meters

per person). Rising disposable incomes of the growing middle class and 40 million units of

housing shortage hold out a great potential.

A major change that took over the ceramic tiles industry, was the introduction of vitrified and

porcelain tiles. These new entrant product types are said to be the tiles of the future.

Internationally these tiles are already the major sellers. These category of products account

for 13% of all organized sales in this industry.

These new products and the conventional wall & floor tiles have together made the

organized industry grow to a formidable Rs. 3000 crores industry. This coupled with a spate

of expansions by many players make the industry look very promising in the future.

The Indian Industry has developed an export market although at the lower end. In volume it

constitutes less than half a percent of the global market. (Presently India does not figure in

the list of major exporting countries). But this reality could change as Indian exports are

rising at the rate of 15% per annum. The top-end of the global export market is presently

dominated by Italy (40.8%) and Spain (26.4%).


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Indian Tile Market

Ceramic Industry in India is about 100 years old and has matured over time to form an

industrial base. From traditional pottery making, the industry has evolved to find its place in

the market for sophisticated insulators, electronic and electrical items. Over the years, the

industry has been modernising through new innovations in product profile, quality and

design to emerge as a modern, world-class industry, ready to take on global competition.

Though there are a number of large companies in the ceramics sector, small and medium

enterprises (SMEs) in India, offering a wide range of articles including crockery, art ware,

sanitary ware, ceramic tiles, refractory and stoneware pipes among others. Most of theplayers are grouped together in clusters.

Over the last two decades, the technical ceramics segment has recorded an impressive

growth propelled by the demand for high-alumina ceramics, cuttings tools and structural

ceramics from the industry. Overall, the Indian ceramics industry has emerged as a major

manufacturer and supplier in the global market.

India ranked 5th in terms of total production. Investments in the last 5 years have

aggregated over Rs. 2000 crores and production during 2006-07 stood at approx. 270

million sq mts and having a share of more than 4.3% (organised and unorganised) with

China being the leader with 36% share. There are, at present, 16 units in the organized

sector with an installed capacity of 21 lakh MT. It accounts for about 2.5% of world ceramic

tile production. The organised sector is characterised by the existence of a few large

players, such as H & R. Johnson, Kajaria Ceramics, Bell Ceramics, SPL, Spartek and

Murudeshwar Ceramics, OCIL and Nitco.

The unorganized sector accounts for 55% of the total industry bearing testimony of the

attractive returns from this sector. The size of the unorganized sector is approximately Rs

3500 crores .Of the total market size floor tiles constitute 53%, wall tiles 35% and vitrified

tiles 12%. The industry has grown at a rate of 15% p.a. for the past three years. In India,

per capita consumption of ceramic tile is 0.15 sq. mtr. Per annum compared with 2 sq. mtr.

per annum in China and 5-6 sq. mtr. Per annum in European countries. With the growth in


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the housing sector the demand of ceramic is expected to increase. Indian tiles are

competitive in the international market.The key drivers for the ceramic tiles in India are the

boom in housing sector coupled by government policies fuelling strong growth in housing

sector. The retail boom in the Indian economy has also influenced the demand for higher

end products. Overall the bullish growth estimates in the Indian economy has significantly

influenced the growth of the Indian Ceramic tile industry.

Size of the vitrified tiles market is estimated at Rs.600 crores and is growing at the rate of

30% p.a. making it the fastest growing segment in the tile industry. Some of major players

in the vitrified tiles industry include organised companies like Murudeshwar Ceramics, H&R

Johnson, Bell Granito and Regency Ceramics. In the unorganised sector, some of the

major players are Euro Ceramics, Decolite Ceramics, Regent Granito, Varmora Ceramics,

Sogo Ceramics, City Tiles, Restlie Ceramics etc.

The ceramic tile industry is characterized by intense competition, low entry barriers and

high working capital requirements. The major demand drivers for the industry domestically

are the high growth in the housing and construction sectors, easy availability of credit and

increase in net disposable incomes. Vitrified tiles command a premium over other types of

tiles mainly due to its superior physical properties. Within the vitrified tiles segment,

realisations are driven by ability of a company to constantly introduce newer designs and

concepts relative to its competitors and in line with the changing trends and preferences of

customers.


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CERAMIC TILE INDUSTRY STATISTICS:

1. World production: 6900 Million sq.mt.

2. India's Share: 270 Million Sq.mt..

3. World ranking (in production): 5

4. Per capita consumption: 0.30 sq.mt.

5. Global Industry Growth Rate: 6%

6. Growth Rate (India Domestic Market): 15%

7. Organized industry turnover (India): Rs 3000 crores

Glazed Wall Tile share: 40%

Glazed Floor Tile share: 46%

Unglazed Vitrified Tile

share:8%

Glazed Porcelain Tile Share: 6%

Unorganised Industry Turnover Rs 3500 crores

Glazed Wall Tile share: 57%

Glazed Floor Tile share: 35%

Unglazed Vitrified Tile

share:6%

Glazed Porcelain Tile Share: 2%

8. Investments in last 5 years: Rs 2000 crores

9. Organized sector:

Share of Production: 56%

No. of units: 16

Revenue (excise duty): Rs 300 crores

10. Unorganized sector:

Share of Production: 44%

No. of units:200 (approx...) (70% based in

Gujarat region)

Revenue (excise duty): Rs 350 crores per annum or less


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Manufacturing of Tiles

Raw Materials-

The raw materials used to form tile consist of clay minerals mined from the earth's crust,

natural minerals such as feldspar that are used to lower the firing temperature, and

chemical additives required for the shaping process. The minerals are often refined or

beneficiated near the mine before shipment to the ceramic plant.

The raw materials must be pulverized and classified according to particle size. Primary

crushers are used to reduce large lumps of material. Either a jaw crusher or gyratory

crusher is used, which operate using a horizontal squeezing motion between steel plates or

rotating motion between steel cones, respectively.

Secondary crushing reduces smaller lumps to particles. Hammer or muller mills are often

used. A muller mill uses steel wheels in a shallow rotating pan, while a hammer mill uses

rapidly moving steel hammers to crush the material. Roller or cone type crushers can also

be used.

A third particle size reduction step may be necessary. Tumbling types of mills are used in

combination with grinding media. One of the most common types of such mills is the ball

mill, which consists of large rotating cylinders partially filled with spherical grinding media.

Screens are used to separate out particles in a specific size range. They operate in a

sloped position and are vibrated mechanically or electromechanically to improve material

flow. Screens are classified according to mesh number, which is the number of openings

per lineal inch of screen surface. The higher the mesh number, the smaller the opening

size.

A glaze is a glass material designed to melt onto the surface of the tile during firing, and

which then adheres to the tile surface during cooling. Glazes are used to provide moisture

resistance and decoration, as they can be colored or can produce special textures.


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Once the raw materials are processed, a number of steps take place to obtain the finished

product. These steps include batching, mixing and grinding, spray-drying, forming, drying,

glazing, and firing. Many of these steps are now accomplished using automated equipment

Once the raw materials are processed, a number of steps take place to obtain the finished

product. These steps include batching, mixing and grinding, spray-drying, forming, drying,

glazing, and firing. Many of these steps are now accomplished using automated equipment.

Batching

For many ceramic products, including tile, the body composition is determined by the

amount and type of raw materials. The raw materials also determine the colour of the tile

body, which can be red or white in colour, depending on the amount of iron-containing raw

materials used. Therefore, it is important to mix the right amounts together to achieve the

desired properties. Batch calculations are thus required, which must take into consideration

both physical properties and chemical compositions of the raw materials. Once the

appropriate weight of each raw material is determined, the raw materials must be mixed

together.

Mixing and grinding

Once the ingredients are weighed, they are added together into a shell mixer, ribbon mixer,

or intensive mixer. A shell mixer consists of two cylinders joined into a V, which rotates to

tumble and mix the material. A ribbon mixer uses helical vanes, and an intensive mixer

uses rapidly revolving plows. This step further grinds the ingredients, resulting in a finer

particle size that improves the subsequent forming process.

Sometimes it is necessary to add water to improve the mixing of a multiple-ingredient batch

as well as to achieve fine grinding. This process is called wet milling and is often performed

using a ball mill. The resulting water-filled mixture is called a slurry or slip. The water is then

removed from the slurry by filter pressing (which removes 40-50 percent of the moisture),

followed by dry milling.


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Spray drying

If wet milling is first used, the excess water is usually removed via spray drying. This

involves pumping the slurry to an atomizer consisting of a rapidly rotating disk or nozzle.

Droplets of the slip are dried as they are heated by a rising hot air column, forming small,

free flowing granules that result in a powder suitable for forming.

Tile bodies can also be prepared by dry grinding followed by granulation. Granulation uses

a machine in which the mixture of previously dry-ground material is mixed with water in

order to form the particles into granules, which again form a powder ready for forming.

FormingMost tile is formed by dry pressing. In this method, the free flowing powdercontaining

organic binder or a low percentage of moistureflows from a hopper into the forming die.

The material is compressed in a steel cavity by steel plungers and is then ejected by the

bottom plunger. Automated presses are used with operating pressures as high as 2,500

tons.

Several other methods are also used where the tile body is in a wetter, more moldableform. Extrusion plus punching is used to produce irregularly shaped tile and thinner tile

faster and more economically. This involves compacting a plastic mass in a high-pressure

cylinder and forcing the material to flow out of the cylinder into short slugs. These slugs are

then punched into one or more tiles using hydraulic or pneumatic punching presses.

Ram pressing is often used for heavily profiled tiles. With this method, extruded slugs of the

tile body are pressed between two halves of a hard or porous mold mounted in a hydraulic

press. The formed part is removed by first applying vacuum to the top half of the mold to

free the part from the bottom half, followed by forcing air through the top half to free the top

part. Excess material must be removed from the part and additional finishing may be

needed.


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Another process, called pressure glazing, has recently been developed. This process

combines glazing and shaping simultaneously by pressing the glaze (in spray-dried powder

form) directly in the die filled with the tile body powder. Advantages include the elimination

of glazing lines, as well as the glazing waste material (called sludge) that is produced with

the conventional method.

Drying

Ceramic tile usually must be dried (at high relative humidity) after forming, especially if a

wet method is used. Drying, which can take several days, removes the water at a slow

enough rate to prevent shrinkage cracks. Continuous or tunnel driers are used that are

heated using gas or oil, infrared lamps, or microwave energy. Infrared drying is better suited

for thin tile, whereas microwave drying works better for thicker tile. Another method,

impulse drying, uses pulses of hot air flowing in the transverse direction instead of

continuously in the material flow direction.

Glazing

To prepare the glaze, similar methods are used as for the tile body. After a batch

formulation is calculated, the raw materials are weighed, mixed and dry or wet milled. The

milled glazes are then applied using one of the many methods available. In centrifugal

glazing or discing, the glaze is fed through a rotating disc that flings or throws the glaze

onto the tile. In the bell/waterfall method, a stream of glaze falls onto the tile as it passes on

a conveyor underneath. Sometimes, the glaze is simply sprayed on. For multiple glaze

applications, screen printing on, under, or between tile that have been wet glazed is used.

In this process, glaze is forced through a screen by a rubber squeegee or other device.

Dry glazing is also being used. This involves the application of powders, crushed frits(glass

materials), and granulated glazes onto a wet-glazed tile surface. After firing, the glaze

particles melt into each other to produce a surface like granite.


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Firing

After glazing, the tile must be heated intensely to strengthen it and give it the desired

porosity. Two types of ovens, or kilns, are used for firing tile. Wall tile, or tile that is

Prepared by dry grinding instead of wet milling (see #2 and #3 above), usually requires a

two-step process. In this process, the tile goes through a low-temperature firing called

bisque firing before glazing. This step removes the volatiles from the material and most or

all of the shrinkage. The body and glaze are then fired together in a process called glost

firing. Both firing processes take place in a tunnel or continuous kiln, which consists of a

chamber through which the ware is slowly moved on a conveyor on refractory battsshelves built of materials that are resistant to high temperaturesor in containers called

saggers. Firing in a tunnel kiln can take two to three days, with firing temperatures around

2,372 degrees Fahrenheit (1,300 degrees Celsius).

For tile that only requires a single firingusually tile that is prepared by wet millingroller

kilns are generally used. These kilns move the wares on a roller conveyor and do not

require kiln furnitures such as batts or saggers. Firing times in roller kilns can be as low as

60 minutes, with firing temperatures around 2,102 degrees Fahrenheit (1,150 degrees

Celsius) or more.

After firing and testing, the tile is ready to be packaged and shipped.


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Introduction

Of

Company


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Kajaria Ceramics Ltd

Kajaria Ceramics Limited is the largest manufacturer and exporter of ceramic wall and floor

tiles in India. Kajaria is the first tile company to win the Super brand Status.Kajaria`s distribution network comprises of about 600 dealers. Kajaria Ceramics is the

largest manufacturer of ceramics tiles in India. It has an annual capacity of 21 mn. Sq. mtr.

Distributed across two plant Sikandrabad at Uttar Pradesh (capacity 6.90 mn. Sq. mtrs)

and Gailpur at Rajasthan (capacity 14.10 mn. Sq. mtrs.).

The Company is in advance stage of commissioning 2.5 mn sq mtr vitrified tile facility at

Sikandrabad (Uttar Pradesh), adding a margin-accretive product vertical to the business

model. After this, the aggregate capacity of the Company would become 23.50 mn sq mtr of

tile production per annum.

The company has received the ISO 9001 (for quality management), ISO 14001

(environment management), OHSAS 18001 (for safety and health management) and SA-

8000 (for commitment to society) certifications across its plant. ), These plants also fulfil

international norms. It is a continuous process, which allows the company to express

through tiles what words can't say and provide our consumers with new and innovative

options. It has unmatched product offering (wall, floor, vitrified, Spanish and Italian tiles). It

has brand enhancing customers like Unitech, DLF, Parsvnath, Magarpatta, Sobha

Developers, DSK, Mantri Group, Prestige Group, Ansals, Hiranandani, Raheja Developers,

Omaxe and EMAAR-MGF, among others.


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BOARD OF DIRECTORS

Mr. Ashok Kajaria (Chairman & Managing Director)

Mr. D.D.Rishi (Joint Managing Director)

Mr. Chetan Kajaria (Whole Time Director)

Mr. Rishi Kajaria (Whole Time Director)

Mr. R.P.Goyal (Independent Director)

Mr. R.K.Bhargava (Independent Director)

Mr. D.P.Bagchi (Independent Director)

Mr. R.R.Bagri (Independent Director)Mr. R.C. Rawat VP (F&A) & Company Secretary

COMMITTEE OF THE BOARD AUDIT COMMITTE

Mr. R.P.Goyal -Chairman

Mr. R.K.Bhargava -Member

Mr. R.R.Bagri -Member

Share Transfer and Investors Grievances Committee Mr. R.R.Bagri -Chairman

Mr. Ashok Kajaria -Member

Mr. D.D.Rishi -Member

Project Management Committee Mr. Ashok Kajaria -Chairman

Mr. D.D. Rishi -Member

Mr. Chetan KajariaMember

Mr. Rishi KajariaMember

REGISTERED OFFICE A-27 & 28, Sikandrabad Industrial Area, Sikandrabad, Dist.

Bulandshahr, (U.P.)


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Kajaria Tiles Growth History

1985 - The Company was incorporated on 20th December at Kanpur. It

manufactures glazed and unglazed wall & floor tiles. The company obtained

the certificate of commencement of business on 20th January 1986. It was

promoted by Shri Ashok Kumar Kajaria, his associate and Kajaria Exports

Ltd.

The Company entered into a technical collaboration agreement with

Todagres S.A., Spain for the manufacture of ceramic glazed wall & floor tiles.

The agreements provides for supply of technical know-how andmanufacturing assistance necessary design, drawings, and specifications

and also trains the companys personnel and provide technical assistance for

the setting up of the plant.

The company undertook a project to set up a plant for the manufacture of

12,000 tpa of ceramic glazed wall/floor tiles in various shades. The plant is

located on a plot of 17.5 acres acquired from UPSIDC at Sikandrabad

Industrial Area in Bulandshahr district of U.P. main plant and machinery was

supplied by Sacmi Imola and Omis Due SPA of Italy. Three D.G. sets of a

total capacity of 835 KVA were installed to meet contingent power

requirement.

The company has an obligation to export 25% of the production for a period

of 5 years from the date of commercial production. It was hopeful of meeting

the export requirement with the help of the promoter company, Kajaria

Exports, Ltd. The company received the necessary registration for the

expansion of the installed capacity from 12,000 tpa to 26,000 tpa.


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1987 -700 shares subscribed for by the signatories to MOA 53,32,700 shares then

issued at par of which the following were reserved for allotment-

(1) 23, 32,700 shares to promoters , Indian resident directors

(2) 8, 00,000 shares on repatriation basis to NRIs and NRI companies owned

predominantly by NRIs.

Out of the remaining 22, 00,000 shares, the following were preferential

allotment.

(1) 2,66,600 shares to employees, Indian working Directors, workers of

company and employees of Kajaria Exports Ltd.(only 11,000 shares

taken up) ,

(2) 5,00,000 shares to NRIs on repatriation basis only 39,600

The balance 14, 33,400 shares along with unsubscribed 17,15,600

shares of preferential quotas, were offered to the public in September

1988. Additional 8, 00,000 shares allotted to retain over subscription.

1989 -The company maintained an average capacity utilization of 120%. The

Company started exporting tiles to the Gulf countries, Europe and

Bangladesh. New ranges of tiles were introduced in the market. Various new

designs and prints were introduced in the market. The expansion programme

was on the verge of completion and production at the expanded capacity was

expected to commence in June, 1990.

During August/September, the company offered 3, 22,000 -14% secured full

convertible debentures of Rs. 100 each were offered on rights basis to the

existing shareholders in the prop. 5 debentures: 100 equity shares (all were

taken up). Simultaneously, 15,330 debentures of Rs. 100 each were offered

to the employees and working directors of the company on an equitable basis

(only 785 debentures were taken up).


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Additional 31,455 debentures along with the unsubscribed portion of 14,545

debentures from employees quota were allotted at the discretion of the

Directors.

As per the terms of issue , part A of Rs. 40 of each debenture was converted

at par into four equity shares of Rs. 10 each at the end of 6 months from the

date of allotment of the debentures. Accordingly 14, 13,820 shares were

issued. The remaining part of Rs. 60 was converted into 3.53 number of

equity shares of Rs. 10 each at a premium of Rs. 7 per share on 15th dec.

1991.

1990 - A further expansion of installed capacity from 26,000 MT to 40,000

MT was being implemented 14, 13,820 shares allotted at par in conversion of

debentures.

1991 -The company was awarded "CAPEXIL" special exports award for the year

1992 for being the largest exporter of ceramic tiles from the country.

The company proposed a further expansion of the installed capacity to 60,000

MT 12, 47,696 shares allotted in conversion of debentures.

1993 -The company proposed a further expansion of the installed capacity to

1, 30,000 MT with the support of technical collaborators M/s. Todagres SA of

Spain.

During July , the company issued 21,98,729- zero interest unsecured fully

convertible debentures of Rs. 70 each at par on right basis in the proportion of

1 debenture : 4 equity shares held.

Another 5,49,671 zero interest unsecured fully convertible debentures of Rs.

70 at par were issued on preferential basis to promoters , directors and their

friends including group companies. Each debenture of Rs. 70 will be

converted into 2 equity shares of Rs. 10 each at a premium of Rs. 25 per

shares on the expiry of 9 months from the date of allotment or on 1st April

1994, whichever is earlier.


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1994 -During the year the company successfully launched wall tiles

Manufactured with single firing technology which was well accepted in the

market.

The company proposed to issue 2,00,000 14% non convertible debentures of

Rs. 100 each at par to financial institutions/ mutual fund on private placement

basis. 54, 96, 800 no. of equity shares allotted on conversion of zero interest

unsecured fully convertible debentures.

1995 - 4, 25, 000 no. of equity shares allotted to IFCI in terms of exercise of

conversion option under loan agreement.

2003 -The Members approved the of Mr. Rishi Kajaria as Director on the

Board and ratification of re-appointment of Mr D.D.Rishi in the capacity of Jt.

Managing Director of the Company for a period of 5 years and voluntary

delisting of equity shares from U P Stock Exchange Association Ltd.,Delhi

Stock Exchange Association Ltd. and Calcutta Stock Exchange Association

Ltd.

Kajaria Ceramics Ltd has informed that the securities of the company have

been delisted from the Delhi Stock Exchange Association Ltd w.e.f December

10, 2003.

2004 -Kajaria Ceramics Ltd has informed that consequent upon acquisition

of R&TA Division of M/s Computech International Limited by M/s MCS Limited,

the Registrar & Transfer Agent of the Company stands changed from M/s

Computech International Ltd to M/s MCS Limited. The change of the same has

been approved by the Board of Directors in their meeting held on December

26, 2003Commenced the commercial production of its additional capacity of 2

million sq mtr per annum on February 27, 2004, with an investment of Rs.340

million at Gailpur Plant. With this expansion, the aggregate capacity of the

company has become 14 million sq.mtr per annum.


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Milestones of Kajaria

1988 - Production of ceramic tiles begins with single firing technology.

1990 - Expansion of capacity from 12000 MT to 26000 MT

1991 - Further increase in capacity to 40000 MT

1992 - Kajaria win the CAPEXIL award for highest exports

1994 - Monoporosa wall tiles introduced for the first time

1995 - Capacity expanded to 80000 MT

1996 - Rs. 1 bn. Turnover crossed

1997 - World economic forums honours Kajaria as one of the top performing

global growth company from India.

(a) Kajaria captures 15% market share and reaches the no. 2 position in the

ceramic industry.

(b) Win the CAPEXIL award for highest exports.

1998 - Capacity expanded to 150000 MT equivalent to 33000 sq. Per day ,

at par with the international players.

1999 - Rs. 2 Bn. Turnover crossed

2000 - National export award presented by prime minister for outstanding

export performance in the ceramic glazed tile segment.

2003 - Rs. 2390 mn. Turnover achieved

2004 - Rs. 2698 mn. Turnover achieved reflecting growth of 13%.


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Production

Kajaria Ceramics is the largest manufacturer of ceramics tiles in India. It has an annual

capacity of 21 mn. Sq. mtr. Distributed across two plants Sikandrabad at Uttar Pradesh

(capacity 6.90 mn. Sq. mtrs) and Gailpur at Rajasthan (capacity 14.10 mn. Sq. mtrs.) .

The Company is in advance stage of commissioning 2.5 mn sq mtr vitrified tile facility at

Sikandrabad (Uttar Pradesh), adding a margin-accretive product vertical to the business

model. After this, the

Aggregate capacity of the Company would become 23.50 mn sq mtr of tile production per

annum.

The company has received the ISO 9001 (for quality management), ISO 14001

(environment management), OHSAS 18001 (for safety and health management) and SA-

8000 (for commitment to society) certifications across its plant. ), These plants also fulfil

international norms.


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Over the years, Kajaria has become synonymous with innovation. New techniques are

diligently applied to create tiles that stand apart and speak the language of your soul.

Hence every year, it comes up

With exciting new concepts that voice new emotions and keep up with current trends. The

manufacturing units are equipped with cutting edge technology, intense

Automation, robotic car application and zero chance of human error, helps it to maintain

high quality and top position. Also theses manufacturing plants are well equipped to cope

with ever increasing demands of customers, conscious of quality and design.

It is a continuous process, which allows us to express through tiles what words can't say

and provide our consumers with new and innovative options. The new range of tiles

released this year adds to the already impressive Kajaria Collection.


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ACCREDITATION

Capexil Award - Certificate in Recoginition of Export achievement in respect of Glazed

Ceramic Tiles for the year 2008-2009.

Achievements for Kajaria are not just about being number one brand; the company is

conscious of its social responsibilities and committed to improving the quality of life.

In 2001 Kajaria became one of a handful of companies in India and the only one in the tiles

industry to adopt a formal environment policy. To fulfil this obligation Kajaria undertook

extensive product reformulation, process modification, equipment

Redesign and re-cycling and re-use of materials. For this it was bestowed the ISO 14001

certification.

Kajaria Gailpur is the only plant in India to have the following four ISO Certifications


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The company was awarded the prestigious OHSAS 18001 for fulfilling international

standards in occupational health and safest management system specifications. Its no

surprise that Kajaria Ceramics is also amongst a very few ceramic tile companies in the

world to get this certification. It was also the first company in the ceramic tile industry to

receive the ISO 9002 certification confirming its adherence to global standards of quality.

The world Economic Forum has also selected the company as one of the top performing

Global Growth Companies from India. The latest feather in the cap is that we have been

selected as the Business Superbrand. Each of these recognitions has spurred the

company to outperform itself.


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AWARDS

Kajaria Ceramics Limited has been awarded the "Super Brand" Title. Kajaria is the

only ceramics tile company who have won the status of consumers "Super Brand".

Mr. Ashok Kajaria (Chairman & Managing Director) receiving the award presented

by Honourable Minster for Civil Aviation, Mr. Praful Patel.

Kajaria has been only Tiles company in India to achieve the rare distinction of being

a superbrand (considered Oscars of branding in India) ,for the fourth time in a row ,

a status shared by only sixty other corporate houses in India.

The company has had a unique distinction of having received the President's Award

for achieving the highest exports in the industry.


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Kajaria Ceramics is the largest exporter of ceramic tiles in India and consistently

winning the Export Awards.

Mr. Chetan Kajaria with the National Export Award Presented by the Prime Minister

of India.


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Dealer/ Sub Dealer showroom

Kajaria Ceramics has a strong distribution network of about 600 dealers and over 6000 sub-

dealers spread all over India.

These Dealer showrooms showcase innovative products, panels and display various colour

combinations for customers to choose from. The display division of the marketing

department has done a remarkable job by upgrading 600 dealer and 6000 sub-dealer

showrooms across the country.

Competitors of Kajaria Tiles

Orient Ceramics Industries Ltd.

OCIL was formed on 18th May 1977 as a public limited company and has been at the

forefront of innovation in home dcor ever since. In 1993, Mr M K Daga, the foremost

ceramic tile technologist in India took over the management of OCIL. Over the years, the

company has grown from strength to strength and has expanded in terms size, scale,

network, product portfolio and turnover.

An innovative and forward-looking brand, the company has many firsts to its name. OCIL is

the pioneer in the manufacturing of Ultra Vitrified Tiles in India. The company also has the

distinction of being the first company in the country to have an in-house European

Designer. Quality and durability, combined with the aesthetics of design and colour make

Orient Ceramics not just a tiles manufacturer but also a company that offers extraordinary

wall and floor solutions. OCIL manufactures one of the widest range of Non-Vitrified,

Vitrified, Ultra Vitrified and 3rd Fired Decorative Tiles for walls, floors & facades. The

company also imports and markets Vitrified Porcelain Tiles, Borders, Motifs and other value

added accessories from various countries to complement its wide range of tiles.


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From an initial installed capacity of 4,000 TPA in 1977, the companys production capacity

now stands at 220000 TPA or 38,000 square metres per day. Orient Ceramics has state-of-

the-art, environment-friendly manufacturing facilities. The technologically sound

manufacturing units conform to the ISO 13753-56:1993 of BIS and ISO 10545-1/17, ISO

13006 specifications. The company has been accredited with ISO 9001:2000, ISO 14001

and ISO 18001 certifications for quality control management systems.

Orient Tiles clientele, comprising individuals, house builders, architects and institutions, are

not only found in India, but are also spread across Europe, South East Asia, Middle East

and the SAARC countries. The company has plans to expand

the export base and to also leverage its strong network of over 1200 retailers and more

than 4000 secondary retailers spread all over the country.

Orient Ceramics clientele in the real estate development space includes leading

developers like DLF, Unitech, Parsvnath, Shobha Developers, Raheja, Larsen & Tourbo,

Rites, CPWD, MES, AAI and other large and small builders. Orient products have been

extensively used in the construction of the prestigious Rashtrapati Bhawan in addition to

beautifying structures like India Habitat Centre (New Delhi), Delhi High Court, Kolkata

Airport, DMRC Stations and ITC-Sonar Bangla (Kolkata) among others. The company owns

two exclusive showrooms in Delhi and Sikandrabad and has more than 1000 franchised

outlets across the country. Orient remains committed to bring the best in tile designs and

quality to Indian consumers.


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Asian Tiles

This company is the result of the dreams of three entrepreneurs, materialized with the

grassroots of passion, experience & dynamism With starting a quest for excellence a

decade ago, today Asian tiles have blazed a trail in the tile industry. With humble beginningin the field of floor tiles, today it has expanded till the horizon, covering almost each of the

aspects of the industry. Supported by vast man power along with mind power, Asian Tiles

possesses the strength of over 3000 business associates spread across the nation. Asian

is all set to reach the goal of supplying world class product, through a network of 18 depots

with display centres & ultra modern plant in the ceramic zone of Sabarkantha, Gujarat,

spread over an area of 2, 30,000 Sq. Mtr. and production capacity of two plants is 32300

Sq. Mtr. Per day of tile. Asian has become India's leading wall tile manufacturer in large

format size, with the biggest size of 300 X 900 mm, where we provide wall tiles of white

body similar to European tiles, with the promise of extremely accurate size control, to add

brightness and depth to the glaze.

It is having all tiling solution like floor and wall segment. In floor segment it has vitrified,

ceramic, aqua art products with the sizes & with versatile design series to match the end

consumer choice and to attract the attention of builders and architect.

In wall segment we are the biggest tile manufacture in India and we produce 15,000 sq

meters per day with the size and design. To spread at all India it has qualified marketing

team who can cater all nook and corner in India. In its product portfolio it also has Marble

stone range also and it is available in premium and popular segment to satisfy the

consumers needs. In India Marble segment is growing and we would also like to cater that

segment with the understanding of market trend.


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H & R JOHNSONS:

Established in 1958, H & R Johnson (India) is the market leader in the field of ceramic tiles

in India. The company is promoted by Mr. Nenshi Shah, Mr. Talakshi Nandu , Mr. KumarShah , Mr Paresh Shah. HRJ has consistently maintained its leadership position in the field

of tiles over the past five decades. Today, HRJ enjoys the reputation of being the only

company in India to offer end-to-end solutions of Tiles, Sanitaryware, Bath Fittings and

Kitchens. Under its flagship brand, Johnson, HRJ offers glazed wall and floor tiles, bath

products, kitchens, laminate and engineered wooden flooring. Marbonite brand offers a

complete range of vitrified tiles, and Endura offers industrial tiles and tiles for special

applications like bathrooms / high traffic areas / swimming pools etc. HRJ has recently

launched top-end, premium range of products under Johnson Ceramics International brand.

HRJ has a strong service network of technicians and engineers spread across the country.

This network complements the range of bath products by offering various services like

installation, trouble-shooting, repairs, and AMC. HRJ's sales volume for the year 2008-09

was 37 million sqm of tiles and plans to achieve 90 million sqm by 2014-15. Keeping world

class quality in mind, its manufacturing facilities are ISO 9001:2000 certified.


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NITCO TILES

Nitco Tiles Private Limited was incorporated on July 25, 1966 at Delhi to take over the

business of manufacturing and marketing of tiles from The Northern India Tiles Corporation(Bombay). Subsequently, the company was converted into a public limited company with

effect from January 25, 1996. Pursuant to this, the name of the Company changed to Nitco

Tiles Limited. Pursuant to the take over of the business of the partnership firm, the

Company started to manufacture mosaic and terrazzo tiles at Thane, Maharashtra. In 1984,

they started the operation at Kanjurmarg, Mumbai for processing and distribution of

imported marble in India. Growing further, in 1995, they began the implementation of a

green field project for manufacture of ceramic floor tiles at Alibaug, Maharashtra and started

the commercial production of ceramic tiles in 1997. In 2002, they started one more marble

processing unit at Slivassa. In 2004, it scaled up operations of outsourcing vitrified tiles

from China.. Currently the product portfolio comprises of ceramic tiles, vitrified/wall tiles,

cement terrazzo tiles, pavers and marbles etc.

The company is renowned and revered for its revolutionary concepts, pioneering

endeavours and premium products in the construction industry for over five decades.

Today, with its rich repertoire in offering unique Floor Tiles, Mosaico, Wall Tiles and Marble,

Nitco has gone to become the one of the preferred name and the ideal choice of millions of

house-holds and the real estate fraternity. An avant-garde at the core, the company has

continued to pioneer ground breaking innovations in all its offerings.

Ceramic Tiles, Vitrified Tiles, Pavers, Imported Marble, Engineered Marble,

Intarsiasplendours of inlay marble and Mosaico- artistic creations in mosaic rendered in

stone, ceramic and marble, for instance. Winning 13 Capexil awards for innovation and

design is the perfect testament to all of its achievements. Nitco's widespread network

includes 18 depots, 750 direct dealers and over 5000 sub dealers spread across the

country. Apart from a closely interlinked network, the Company also has 4 factories and

various offices in India, with its headquarters located in Mumbai.


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SOMANY TILES

Whether ceramic glazed tiles, vitrified tiles, sanitary ware or porcelain floor tiles, Somany

has been one company known for style and quality. In 1969 Shri H L Somany incorporateda company called Somany Pilkington's, which later became Somany Ceramics Ltd. It was

the power of a dream and the zeal to excel, that drove Shri H L Somany to forge a path of

success for this company.

In 1971 the very first unit of Somany started production in Kassar, Haryana. Since then

Somany has reached and surpassed many milestones setting-up of second unit in 1981,

buyout of all equity shares by Somany's Indian promoters in 1994; achieving Government

recognition for its R&D Department in 1996 (a first in the tiles industry); getting ISO 9002

certification in 1998; achieving ISO 14001 for environment friendly facilities, in 1999;

ventured in retailing in 2007, joint venture with Keraben under brand name Synergy, got

patent for VC technology-a first ever in Indian Ceramics industry and incorporation of HL

Somany group.

Somany Global flagship retail showrooms are currently located in Delhi, Gurgaon, Ludhiana

and Mumbai, Pune and Indore. Many other retail showrooms are about to be opened in

leading centres. These showrooms cater to high-end customers and offer imported tiles as

well as exclusive Aqua ware brand sanitary ware. A large network of Somany display

centres are also spread across the country. A wide cutting-edge array of designs and

material make up the inspiring Somany range of tiles. Somany strives to bring its customers

floor, wall, vitrified, ceramic, porcelain and innovative tiles that are the very latest in the

world.

Somany is focusing on creating a niche for itself in this sector, by bringing in and adopting

the latest in design, concept and technology. In the endeavour to bring the very best to

customers, they source their raw material from as far as Italy, Spain, and China besides

Rajasthan, Uttar Pradesh, Madhya Pradesh and other major centres in the country.

Somany has a production capacity of 15.7 million sq met per annum from its Haryana and

Gujarat units. It has always focused on acquiring and leveraging the latest


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technologies and know-how. A commitment to bring to life new ideas and design

innovations is driven by the huge amounts of funds invested in research and development.

This has borne fruit in the form of Somany's achievement of establishing the very first

Government Recognized In-house Research & Development Centre.

Somany has also brought in some ground-breaking technologies into the Indian market.

Their highly advanced Rot colour Machine has the capacity to decorate ceramic tiles with

glazes, using a serigraphic decorating system that employs silicon cylinders. This

integrated system that optimizes decoration of tiles enables any kind of random design and

also a marble effect. Another exceptional technological advantage has been achieved with

Somany's Laser Guided Vehicle system. This cutting-edge material transportation system

has automated the movement of ceramic materials in the production system. The Laser

Guided Vehicle facilitates optimal and accurate handling, thereby minimizing rejection of in-

process materials during the production of tiles. All of this is a result of Somany's

commitment to bring the best and the latest to its valued stakeholders and customers in

India.

Bell Tiles

The company started in 1985 with the aim of manufacturing world-class ceramic glazed

tiles. Two plants, strategically located near major Indian markets. One near Vadodara,

Gujarat, Western India; other near Bangalore, Karnataka, Southern India. Vadodara plant

has production installed capacity of 63.87 lakes square meters per annum of wall and floor

tiles. Bangalore plant has an installed capacity of 82.13 lakes square meters per annum of

floor tiles. Wide range of breathtaking products to suit various consumer preferences Like

Ceramic Glaze Wall Tiles. 200mm x 300mm, Ceramic Glazed Floor Tiles. 300mm x

300mm, 400mm x 400mm, Also available Edge Cut Floor Tiles in large 397mm x 397mm

format for that joint free look, Bell is a pioneer in making Non-Skid Group-V Series, Floor

Tiles in 300mm x 300mm, 400mm x 400mm & In Edge Cut 397mm x 397. ISO

9001:2000 and ISO 14001 manufacturing facilities strategically located near prime markets

in India.Manufactured according to COMITEE EUROPEAN DE NORMALISATION (CEN).


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It has well-spread and well-connected distribution network comprising 29 Depots, more

than 1000 Dealers and over 4000 Retailer to ensure optimal delivery. Country-wide

connectivity of depots through world-class ERP software adds to effective outbound

logistics, inventory and receivable controls. It has been feted with many awards for

performance including Certificate of Merit conferred by the President of India for meritorious

performance in Exports. It also keeps in touch with end-users, influencers and channel

partners with regularly organised events, exhibitions and meets.


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INTRODUCTION OF

THE STUDY


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INTRODUCTION TO THE PROJECT TOPIC

Marketing as it is said is the one of the corporate activities. Half the battle is won if the

marketing strategy is right. Marketing is the field, which deals with getting right things , by

right people. It is first and for most in launching and distributing the product and services.

The market research is meant to get the knowledge o the latest trend prevailing in the

market and to know about the mood of the customer.

Marketing environment is changing at an accelerating rate. Change levels vary from

Buyer need to buyer want,

- National to regional to local,

- Price to non price competition

Look for real time marketing information to give company a competitive advantage over itscompetitors.

This survey deals with marketing a database of the dealers, who are closest to the real time

happenings in the market and the end customers.


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Research Methodology

TITLE OF THE STUDY- Potential analysis of market share and satisfaction of dealers

Universe the universe was Jaipur city with the finite sample size of 100

Sampling technique the sampling technique adapted was random Sampling. For

the same purpose , visits to random dealers and sub dealers was made , in different areas

of Jaipur , keeping in mind the objective of minimizing Bias and maximizing the reliability ofdata. Also, by adopting this procedure it was ensured that the sample drawn would have

the same composition and characteristics of the population.

Research Design the research was descriptive in nature as it dealt with describing

the market and potential of the dealers and also the survey of the consumer to know about

perception. The research was designed to discover the potential dealer / sub dealer.

Data collection A questionnaire was developed to conduct the research. The

researcher put to the respondents the questions form and recorded the replies.

The questionnaires were the best available alternative for data collection. The other option

was that of interview and questionnaire. The schedule had many features which added

value to its use as a tool for accumulation of required information.


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Limitations of the study

Due to time constraint, the area under study was limited to only a selected segment

of the market. The population selected was dealers, sub dealers and retailers and

customer.

Hence the findings of the study may pertain only to the area covered by the

researcher.

The researcher faced major problems while conducting survey taking in to

consideration, various constraints, which deal with the middle class.

The result of the study depends on the information furnished by the respondents and

hence the information provided by them may subject to sampling bias.

Preference and response of customer could change over a period of time.

Some of the respondents did not respond properly and accurately due to time

constraints, which was main hindrance.

Some of the sub dealers were completely new, so they felt amazed and suspicious

of the survey.

Also some dealers, dealing in other tiles refused to entertain any such survey

conducted by Kajaria.

Also the personal bias of the dealers towards and against Kajaria brand might alter the

correct response to the survey questions.


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FACTS AND FINDINGS

FACTS

There are many facts I have in Kajaria ceramics limited few are as follows :-

1. The training and development procedures in Kajaria ceramics limited are good.

2. The employees in Kajaria ceramics limited are encouraged by their superiors so that they

can work efficiently and learn more about their job.

3. The duration of the training procedure in Kajaria ceramics for the employees is sufficient

for their effective learning.

4. The trainers in the Kajaria ceramics create a friendly atmosphere so that the employees

can ask their queries without hesitation.

5. The atmosphere provided in the training area is very clean so that the employees do not

feel annoyed.

6. The employees were not so much happy with the training as they feel that some

alternative knowledge should be provided to them.

7. The training schedule of the employees was abrupt and hectic so they felt very tired

mentally and physically.


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8. Some of the employees felt that the training provided to them was not so good for their

learning.

1. The environment and working conditions for employees are good.

2. A food mess runs whole day for workers.

3. Tea provision is also provided for employees.

Safety securities are provided while working and training.


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Significance of the study

Significance for the industry

This is a limited study which takes into consideration the responses of 100 dealers. This

data can be explored to find out the trends across the industry. The significance for the

industry lies in studying these trends that emerge from the study. It is a rapidly changing

and evolving sector. A study like this can attempt to guide the future of the industry based

on current trends.

Also the views of the dealers would help in determining the future strategies of the

companies and add to the betterment of end user requirement.

Significance for the researcher

To have a firsthand research experience about tiles industry. Various primary and

secondary data sources would help in shaping a good notion about the industry trends and

its future prospects. Also recommending measures to improve the present scenario of a

company would boost up the confidence of the researcher.

Title of the study Potential analysis of market share and level of satisfaction of

dealers and sub dealers of Kajaria.Duration 45 days.


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Specifying Research objective

The present research was conducted to achieve the following objectives:

To know the market potential for Kajaria wall and floor tiles

To collect the database sub dealers, retailers who play an imperative role in

distribution of Kajaria Products

To know the preference of Architects and builders for wall and floor ceramic tiles.

To gain information about various construction sites (where there is requirement oftiles) undertaken by these architects and builders.

To know the dealers perception towards Kajaria products

To study the various factors to which customer gives importance while purchasing.

To know the major competitors and their schemes which are offered as promotional

tool.

To do the SWOT analysis of the company.

To give necessary suggestions to the company.

Scope of study

The project work entitled potential study of market share and level of satisfaction of dealers

an sub dealers of Kajaria was conducted in the city of Jaipur. The survey has been

conducted for the purpose of analysing the perception pattern of the respondent. A multiplechoice questionnaire was designed for the same purpose.

This questionnaire includes various aspect information like customer preference, dealer

perception towards Kajarias product, various factors affecting the purchasing of the

product, major competitors and their different kinds of scheme and benefits. Thus to collect

information to improve market share and to make suitable marketing strategy with the help

of all this information.


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Data Analysis

and

Interpretation


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Data Analysis and Interpretation1.According to you what does the consumer prefers before buying tiles?

Interpretation

Brand and cost are most important criteria for selection of tiles, by customers. The company

should focus on both parameters equally, and should ensure the cost of the products ,

should not seem rocket high. Also during the survey, most dealers said that customers

believe that quality comes from brand image which makes brand building all the more

crucial. The second important factor is variety, so if the company can deliver variety in

different price range category, consumers will not need to go anywhere else, for moreoptions.

30%

30%

12%

25%

3%

Consumer preference while buying tiles

Cost Brand Quality Variety Delivery


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2..While buying which brand consumer prefers the most?

Interpretation

Kajaria clearly emerges out to be a market leader, with closest competition with Somany

tiles. Many other brands like orient, Nitco, Asian are also noticeable players in the market.

Also there is a large market of Gujarat tiles, which is known for being less expensive and

dealers find their margin in these tiles high. Some tile dealers also deal in imported tiles and

serve high end customers.

42%

11%5%

5%

37%

Preferred brand by consumer

Kajaria Somany Bell Nitco Others


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3.For which portion of the house consumer prefers tiles?

Interpretation

The sale of tiles for bathrooms, surpass other areas by a large margin. It can be concluded that most of the

households prefer tiles at least in their bathrooms. Other than bathrooms, kitchen and rooms also find large

application of tiles. So apart from providing a wide variety for bathrooms, the company should also

concentrate on other areas and should try to promote tiles for these areas by low initial cost or other

marketing tools. This way the company can create new innovative application of tiles and expand the tilemarket.

16%

14%

58%

7%

3%

2%

Most preferred area for Tiles

Room Kitchen Bathroom Front elevation Roof Parking


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4. Which scheme stands most attractive ?

Interpretation

Clearly discounts are the most preferred scheme for dealers, which earn them more profit.

Free samples are also preferred by dealers, which they also display in their showrooms to

show more variety to the customers.

63%

22%

3% 9%3%

Preffered schemes by Tile dealers

Discounts Free samples Extra Foreign travel Others


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5. The margin of Kajaria tiles is?

Interpretation

Most of the dealers and associate dealers find the margin in Kajaria and overall tile industry

to be low or limited. The margin further reduces for dealers who have to purchase fromother dealers in order to sell Kajaria tiles on customer demand.

41%

35%

24%

Margin of Kajaria Tiles

Low Limited Satisfactory


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6. Total no. of boxes sold per month (approx.)?

Interpretation

One third of the tile dealers sell more than 2500 boxes of tiles , and most of them are not Kajaria dealers. So

the market shows a lot of potential, where the company should try to make these dealers sell Kajaria tiles.

11%

11%

22%

19%

4%

33%

Total no. of boxes sold by dealers / month

2500


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7. Total no. of boxes of Kajaria sold per month (approx.)?

Interpretation

A large no. of dealers and associate dealers of Kajaria sell above 2500 boxes of tiles, which is very beneficial

for the company. But there are many small players in dealership, on which the company needs to focus in

order to capture a bigger market share.

11%

22%

11%

6%6%

44%

No. of Kajaria tiles Boxes sold / month

2500


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8. Which size (in mm.) does consumer prefers the most?

Interpretation

The most preferred tile size in the market is 300*450 mm , so the company should take

care that it has wide variety in this size. Not far behind is the size 300*200, 300*600, so the

company should focus on these standard sizes preferred by the customers.

3%

30%

6%

36%

25%

Most preferred Tile size

200*200 300*200 250*400 300*450 300*600


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9. Promotional schemes adopted by the company are beneficial for dealers and

associate dealers?

Interpretation

According to the survey, a large number of dealers seems to be satisfied with the

promotional schemes of the company. The company should make efforts to maintain this

high number as the dealer forms an important link in the selling of tiles , and should be kept

satisfied as far as possible.

89%

11%

Are promotional schemes beneficial for

dealers

Yes No


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SWOT

Analysis


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SWOT Analysis of Kajaria Tiles

STRENGTH

Consistent growth of 12-15 percent inspite of slowdown in economy. The Indian

ceramic export market is rising at the rate of 15 percent per annum.

The top management enjoys a tile industry experience of more than two decades.

Kajaria is Indias largest ceramic floor and wall tile manufacturer; its expanded

Capacity and improved capacity utilisation provides attractive economies of

scale.

The manufacturing process is fully automated and mechanised.

Kajaria is present across the entire value chain, from glazed ceramic tiles to

Polished porcelain tiles to glazed porcelain tiles.

Kajarias R&D team creates around 8-10 designs every month and was credited with

a number of pioneering initiatives

Its showroom display wide variety of concepts.

Kajaria is a well known and established brand for years known for its quality and

variety.

Kajarias multi-layered distribution channel (owned showrooms and dealer/sub

dealer network) in India and 20 nation footprint enhance reach.

Kajarias institutional clients in India, comprising DLF, Unitech, Mantri Group and Raheja Developers,

among others, drive product off take.

WEAKNESS

Comparatively higher price.

Colour difference in same box.

Broken tiles in some boxes.

Company itself a competitor of its own dealers, esp. In bigger projects.

Not much importance given on brand building and network thus creating hindrance

for export growth.

Lack of print media ad about availability of dealer.


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OPPORTUNITY

The construction and Housing Boom to provide bolstering demand for ceramic

tiles. It can tie up with housing finance companies private as well as government.

It should open more showrooms to give thrust to display concept.

Concept of selling through retail outlets.

Low per capita consumption (0.15 sq.mt. p.a.) as compared to developed nations, so

lot of potential remains untapped in the existing markets.

The untapped rural market supported by a strong growth witnessed by Indian

agriculture provides tremendous potential for the domestic ceramic manufacturers.

THREATS

Freight, supply of power and gas remains the key cost-related issues impacting the

industry.

Agitated dealers can distort the perception of individual customers.

Competitors have lower price eg. Tiles from Gujarat.

Competition following push strategy providing the higher commissions to

intermediaries.

Regional or local players may be dangerous for the company.

Basic Customs Duty on import of ceramic tiles from China and raw materials

imported from abroad should be corrected to prevent dumping of tiles from China.


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RECOMANDATION

&

SUGGESTION


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Suggestions

The margin policy for dealers should be uniform so that small dealers can also

benefit the same as big dealers.

Providing panel as tile sample in place of providing tiles sample in lose. The

company should provide double sided display panel as panel are easier to manage

as compared to lo se tiles. It will also save space and at the same time panel will

always be in display so that the loss (in terms of breaking the tiles) while taking out

the tiles for customers, can be curtailed. As the company is in retail business also, It should give discounts, gifts , schemes

directly to customers and pass on the benefit directly to them esp. At the time of

festivals or on purchase of a particular type of design or volume etc. But especial

care should be taken in this case for dealers, so they dont feel cheated or in loss.

Some dealers complain that the company launches new designs very soon, so their

is a dead stock problem for dealers. So there should be sufficient time given to the

dealers to clear the stock before forcing him to buy more stock. Also the approvals for the project seems to be time consuming , so higher

management should try to speed up the process by giving some authority and

decision making power at lower levels or appointing an officer exclusively for project

approvals.

Care should be taken about the complaints of colour and quality variation in two

boxes of same tiles.

Packaging seems to be improved as compared to other tiles in the market such asAsian. This will not only make material handling easier at dealer end but also at

consumer end.

Also their seems to be a gap between the products, which gives opportunity to local

tiles to cover that gap. So the company should try to give a wider range of products

at various price tags.


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The company should try to enter into beneficial ties up with private housing finance

company.

It should give importance to brand building and network for enhancing export growth.

Also the company should focus on brand building and advertisement, which willagain help in creating its presence in international market.

The company should also concentrate on other areas of the building apart from

kitchen and bathrooms and should try to promote tiles for these areas by low initial

cost or other marketing tools. This way the company can create new innovative

application of tiles and expand the tile market.

It may introduce a specific dedicated team to look after the overall brand equity.

They will ensure that all showrooms and dealer display centres were in sync with the

Kajaria profile. Also they will look after the external packing material which creates

an eye on look-an feel, resulting in a holistic branding approach.

To grow its institutional business, the company should organize more interactions

with architects, developers and government agencies at its dealer outlets. This would

serve a dual purpose: it would enable the company to acquire an insight into

evolving preferences of some of the most prominent and trend- influencing

architects; on the other hand, it helped the company cater to their evolving

preferences.


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CONCLUSION


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Conclusions

The ceramic tile industry is characterized by intense competition, low entry barriers

and high working capital requirements.

Kajaria is a market leader of ceramic tile industry , but in order to maintain this

position it has to be proactively conscious for market needs.

Kajaria Ceramics is the largest manufacturer of ceramics tiles in India.

Kajaria clearly emerges out to be most preferred choice of customers, with closest

competition with Somany tiles.

Kajaria should include customers feedback, so that company can change range of

products and increase quality of product in accordance with customer taste and

preferences.

In order to build a strong selling network Kajaria needs to take care of the issues of

its dealers to maintain high sales to end users.

The quality and colour variation issues in two boxes of same tiles can hamper the

brand image of the company if not taken seriously.

The low per-capita consumption of ceramic tiles in India, which is currently around

0.5 sq. m per person as compared to 2.0 sq. m per person in countries, like

Malaysia, Brazil and China, offers huge growth potential.


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BIBLOGRAPHY


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Books

Marketing management kotler Philip

Research methodology Kothari C.R

Websites

www.Kajariaceramics.com

www.kajariaworld.com

www.hrjohnsonindia.com

www.bellceramics.com

www.google.com

Others

Kajarias catalogue

News paper

Times of India

Business standard


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ANNEXURE


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Name of the key person: _____________________________________________

Name of the organisation: ____________________________________________

Office address: _____________________________________________________

Contact No.: _______________________________________________________

8.. According to you what does the consumer prefers before buying tiles?

(a) Brand (b) Cost (c) Quality (d) Variety (e) Delivery

9.While buying which brand consumer prefers the most?

(a) Kajaria (b) Somany (c) Johnson (d) Bell (e) Nitco

10. For which portion of the house consumer prefers tiles?

(a) Room (b) Kitchen (c) Bathroom (d) Front elevation (e) Roof (f) Parking

11. Which scheme stands most attractive?

(a) Discounts (b) Free samples (c) Extra (d) Foreign travel (e) Others

(b)

12. The margin of Kajaria tiles is?

(a) Low (b) Limited (c) Satisfactory (d) High


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13. Total no. of boxes sold per month (approx.)?

(a) 1000 (b) 1500 (c) 2000 (d) 2500 (e) other ___________

14. Total no. of boxes of Kajaria sold per month (approx.)?

_________________________

15. Which size (in mm.) does consumer prefers the most?

(a) 200*200 (b) 300*200 (c) 250*400 (d) 300*450 (e) 300*600 (f)150*600

16. Promotional schemes adopted by the company are beneficial for dealers and

associate dealers?

(a) Yes (b) No

17. Any suggestion for tiles industries for future prospects?

______________________________________________________________

______________________________________________________________


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DIPESH PAARASHAR

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