Market Research Report : Ceramic tiles market India 2013 by Netscribes, Inc.

Ceramic Tiles Market ‐ India February 2013

Executive Summary

Market

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  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

Drivers & Challenges

Trends

Challenges

– Boom in real estate sector – Rapid urbanization and increasing income – Untapped market potential – Replacement market

– Tough competition from unorganized players – Import of Cheap Tile from China – Rise in Power and Fuel Costs

 Introduction of Nanotechnology

 Shift to Vitrified Tiles

 Eco‐friendly Tiles

 Large Distribution Network

 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

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

Definition and Market Scope

SAMPLE

Definition

• 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

Scope of the report CERAMIC TILES MARKET IN INDIA 2013.PPT

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‐‐

P M SA

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

• Cumulated investments during the period 20‐‐‐20‐‐ stood at INR mm bn

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

Market Size and Growth (Value)

Market Size and Growth (Volume) 1.2

0.8 0.4

1.0 0.6

400

300

200

20‐‐

100

0.2 0.0

20‐‐

CERAMIC TILES MARKET IN INDIA 2013.PPT

20‐‐

20‐‐ 5

Drivers & Challenges – Summary

SAMPLE Challenges Drivers

Tough Competition from Unorganized 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

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 stimulate the market in the ensuing years • k% of the demand will arise directly from Tier 1 cities alone • Increasing requirement of space from various sectors like healthcare, education, IT, telecom, hospitality etc make the real estate a profitable sector for players

Pune ,Ahmedabad and Mumbai, Bangalore, Hyderabad are expected to see maximum appreciation in 20‐‐

P M SA

Real Estate Market Size (Value ) SEGMENTTION

Commercial Sector Residential sector

Retail Space Hospitality Space

6 4

c a

Special Economic Zone

20‐‐ CERAMIC TILES MARKET IN INDIA 2013.PPT

20‐‐

20‐‐ 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 affect the industry

P M SA

 This price hike increased the budget of the industry by INR f mn to h mn per ceramic unit of MORBI, which many units cannot afford

• 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

Fuel prices are directly linked with the prices of crude oil 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

Total Expenditure

4,000 2,000 0 2009 Dec

2010 Dec

2011 Dec

2012 Dec

2013 Jan

CERAMIC TILES MARKET IN INDIA 2013.PPT

Profit Margin Increase

Decrease

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

Public: Domestic Company – Player A (1/3) Company Information

Offices and Centres – India

Corporate Address

Player A 5th Road, 6th Street, City A – 700 xxx

Tel No.

91 22 6679 xxxx

Fax No.

91 22 6679 xxxx

Website

www.playera.com

Year of Incorporation

19‐‐

Ticker Symbol

53xxxx (BSE)

Stock Exchange

Bombay Stock Exchange

Products and Services Category

P M A S

Products/Services

E L

City X

Head Office

Key People Name

Designation

Person A

Person B

CFO

Person C

CEO

CERAMIC TILES MARKET IN INDIA 2013.PPT

SAMPLE

Public: Domestic Company ‐ Player A (2/3) Financial Snapshot Total Income

INR mn 40,000 30,000 20,000 10,000

28,803.1

Key Ratios

Net Profit/Loss INR mn 34,381.0

35,858.4

3000 2000

20,836.4

1000

2009

2010

2011

2012

Financial Summary • The company earned a net profit of INR 2,345.9 mn in FY 2012, as compared to net profit of INR 2,228.7 mn in FY 2011 • The company reported total income of INR 35,858.4 mn in FY 2012, registering an increase of 4.3% over FY 2011

Particulars Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)

• The company reported debt to equity ratio of 0.86 in FY 2012, a decrease of 1.63% over FY 2011

Leverage Ratios

Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute)

Value (09/01/2013) xx xx xx xx

2010

2009

‐0.19

8.78%

8.97%

7.61%

8.01%

0.06

6.54%

6.48%

5.76%

6.24%

‐0.15

8.44%

8.58%

7.77%

8.13%

0.48

15.42%

14.94%

13.74%

13.07%

14.71% 13.18% ‐ 50.35% 10973.56% 8.27% 7.95%

13.53%

13.95%

46.22%

36.95%

1.52 ‐11023.91 0.32

8.07%

8.62%

4.55

16.76%

12.20%

19.68%

23.75%

0.19

91.11%

90.92%

92.34%

91.90%

17.24

17.24%

0.00%

6.07%

8.64%

0.03

1.65%

1.62%

0.68%

1.12%

‐48.94%

1.00

1.95

1.82

2.13

‐43.37%

0.26

0.47

0.63

0.83

Cost Ratios

• The company earned an operating margin of 8.78% in FY 2012, a decrease of 0.19 percentage points over FY 2011

Indicators

2011

Profitability Ratios

Liquidity Ratios

Key Financial Performance Indicators

y‐o‐y change 2012 (2012‐11)

Current Ratio Cash Ratio Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio

‐1.63%

0.86

0.88

0.70

0.52

‐20.15%

0.27

0.34

0.24

0.17

‐3.90%

5.39

5.61

11.27

7.20

35.97%

2.53

1.86

3.39

3.77

3.01%

1.25

1.21

1.39

1.37

36.26%

5.10

3.74

3.59

3.11

‐21677.73%

‐1655.74

7.67

7.97

5.86

2.23%

2.33

2.28

2.37

2.07

Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover

Improved

CERAMIC TILES MARKET IN INDIA 2013.PPT

Decline

Public: Domestic Company – Player A (3/3) Key Business Segments

Key Geographic Segments

100%

50% 0%

20‐‐

Business Highlights Description Overview

News

P M SA

20‐‐

Network

Expansion Plan

CERAMIC TILES MARKET IN INDIA 2013.PPT

Private: Domestic Company – Player 2 (‐/‐) Company Information

Offices and Centres – India

Corporate Address

Tel No. Fax No. Website Year of Incorporation

Products and Services Category

L P M A S

E India Office

Products/Services

Key People Name

Designation

Person 1

Person 2

Person 3

MOBILE INTERNET MARKET IN INDIA 2012.PPT

Private: Domestic Company – Player 2 (‐/‐) Financial Snapshot

Key Ratios Particulars

Total Income

Total Income INR mn

Profit INR mn

Profit / Loss

L P M A S 0

20‐‐

Financial Summary

20‐‐

Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)

Liquidity Ratios

• It reported total Income of INR ‐ bn in FY 20‐‐, as compared to INR ‐ bn in FY 20‐‐

Leverage Ratios

• The company reported debt to equity ratio of ‐ in FY 20‐‐, an increase of ‐ per cent over FY 20‐‐

2009

2008

19.72%

‐1.10

14.68%

15.78%

16.93%

‐0.91

13.23%

14.14%

15.55%

18.61%

‐0.83

15.25%

16.08%

17.46%

20.62%

7.60

60.51%

52.91%

34.43%

47.18%

8.09

67.13%

59.05%

37.48%

49.96%

75.43

150.07%

74.64%

44.18%

58.13%

3.58

24.34%

20.77%

18.93%

24.74%

28.31

319.77%

291.46%

227.97%

346.05%

1.06

85.23%

84.17%

82.96%

80.08%

0.49

10.10%

9.61%

9.11%

7.41%

0.01

0.01%

0.00%

0.01%

‐12.79%

1.27

1.46

1.95

1.90

‐8.37%

0.60

0.65

1.21

1.18

‐4.03%

1.49

1.55

0.82

0.91

‐82.25%

2219.40

16.94%

24.03

20.55

14.57

18.41

24.95%

1.83

1.46

1.21

1.32

45.65%

2.41

1.65

1.38

1.46

114.30%

11.28

5.26

2.82

3.09

21.89%

4.55

3.73

2.20

2.51

Cost Ratios

• Company incurred a net profit of INR ‐ bn in FY 20‐‐, as compared to net profit of INR ‐ bn in FY 20‐‐

• The company earned an operating margin of ‐ per cent in FY 20‐‐, a decrease of ‐ percentage points over FY 20‐‐

2010

Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets

y‐o‐y change 2011 (2012‐11)

Current Ratio Cash Ratio Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio

12502.34 11161.05

NA 2901.67

Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover

Improved

MOBILE INTERNET MARKET IN INDIA 2012.PPT

Decline

Private: Domestic Company – Player 2 (‐/‐) Key Recent Developments Description

Details

Overview

Projects

L P M A S

MOBILE INTERNET MARKET IN INDIA 2012.PPT

Appendix Ratio

Calculations

Ratio

Calculations

Operating Margin

(Operating Income/Revenues)*100

Current Ratio

Current Assets / Current Liabilities

Net Margin

(Net Profit / Revenues) *100

Cash Ratio

Profit Before Tax Margin

(Income Before Tax / Revenues *100

{(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}

Debt to Equity

Total Liabilities / Shareholders Equity

Debt to Capital Ratio

{Total Debt / (Shareholders Equity + Total Debt)}

Interest Coverage Ratio

EBIT / Interest Expense

Fixed Asset Turnover

Sales / Fixed Assets

Asset Turnover

Sales / Total Assets

Return on Equity (ROE) Return on Capital (ROCE) Return on Working Capital

(Net Income / Shareholders Equity)*100 EBIT / (Total Assets – Current Liabilities)*100 (EBIT / Working Capital) *100

Return on Assets

(EBIT / Total Assets)*100

Return on Fixed Assets

(EBIT / Fixed Assets) *100

Operating Costs (% of Sales)

(Operating Expenses / Sales) *100

Current Asset Turnover

Sales / Current Assets

Administration Costs (% of Sales)

(Administrative Expenses / Sales) *100

Working Capital Turnover

Sales / Working Capital

(Interest Expenses / Sales) *100

Capital Employed Turnover

Sales / (Shareholders Equity + Total Debt)

Interest Costs (% of Sales)

SANITARYWARE MARKET IN INDIA 2012.PPT

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

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CERAMIC TILES MARKET IN INDIA 2013.PPT