This is an overall study of the organization of Cera Sanitaryware Ltd.where it’s working environment and various policies and practice are studied.

The study has undertaken to get an exposure of actual working environment in an organization. The main objective of the study is to familiarize with the frame work and method of organization working. • • • • To know how Cera works and method adopted. To know the employee and employer relationship and co-ordination. To show up the different product range of Cera Sanitaryware Ltd. To know the overall development of Cera Sanitaryware Ltd.

Conducting personal interview with all the functional manager departmental head and sales executives. Collect the various data required to the study. Manuals and reports of the company constituted the source of secondary data.

The following limitation of this internship report: • • • • The study is limited to the study of whole organization and not on specific department. This study is only subject to an organization and not consist the whole market. The study is time bound and would be applicable to current scenario It is assumed that the information provided by the company is corrected and reference is drawn accordingly.



Introduction to Sanitaryware industry:
India is a large, highly populated Country of around one billion people, with an economy, which is steadily growing. As per the study, there were an estimated 125 million dwellings in India (1995), but 200 million households. This reveals an acute housing shortage. The U.N. predicts an increase in the population of 1.6% per annum. There is a gradual migrant shift from rural to urban areas and 27% of the population now lives in urban areas as compared to 20% in 1971. There is a large difference in amenities between the urban population and the rural. In 1994, 70% of the urban population had access to adequate sanitation, whereas in the rural community only 14% had access. In 1991, approximately 64% of urban households had some kind of toilet facility compared with 9% of the rural areas. There is a widening difference in income between different regions, the rich and the poor. Sanitation is a must for every individual of our society. According to the Government estimates, more than 50% of the urban population does not access to sanitation facilities. Condition of the rural areas abysmal that only 6% of the population are covered by sanitation. Sanitaryware Demand: Sanitaryware Industries in India for the last 6-7 years have shown very dramatic growth with major players doubling their production capacity. The Companies have also upgraded their manufacturing system by introducing Battery Casting, Beam Casting and have gone in for latest imported Fast Firing Cycle Kiln Technology. These Companies have also upgraded their quality and have introduced high value range in the market, which has been accepted and appreciated. The demand for high value Sanitaryware in India is growing very fast. The Companies are trying to meet the demand as the realization per Metric Ton for high value product is very good which ultimately results in good profitability. In order to educate the customers in India to go for quality products and also for higher value sanitaryware, companies have adopted a very aggressive advertisement campaign. Companies have also strengthened their dealer network by offering showroom incentives and some of the companies have also gone for their own retail outlets in major towns. The demand for Sanitaryware in India is growing @ 15% -17% every year



The sanitaryware industry in India is divided in two sectors. The organized sector consisting of 5 companies (M/s. Hindustan Sanitary Industries Limited, M/s. E.I.D. Parry, M/s. Swastik Sanitaryware Limited, M/s. Madhusudan Ceramics, M/s. Neycer India Limited), manufacturing sanitaryware for the last 15-20 years and have established their Brand image. The organized sectors produce fully vitrified sanitarywares, using latest technology and best of Ceramic Raw Materials available in India. The unorganized sectors have adopted local Indian technology to manufacture the basic sanitaryware products. Since the availability of raw material is in abundance and also very cheap in the state of Gujarat & Rajasthan, various companies have established their factory in these areas. They are producing the basic sanitaryware in various brands. Unorganized sector's percentage of production capacity and also their sales in the local domestic market are higher than that of the organized sectors' sales. Unorganized sanitaryware manufacturer comes under small sectors and hence enjoy the benefit of Nil Excise Duty and Sales Tax and hence they sell their products in the domestic market approximately 70% cheaper than the organized sector products. Opportunities: Government of India Policy on Housing Sector is very encouraging. The Government has announced Income Tax rebate on housing loan to boost the housing sector. All financial institutions are lending money for construction of house at a very low rate of interest. Government figure shows that Housing Sector is growing by approximately 25% every year. The need of Housing in India with 100 crores population looks to be very potential. As per DGTD Survey Report there is a shortage of about 20 million houses in the country by the end of 8th Five Year Plan. The housing has become a basic necessity, as people in India are looking forward for improved sanitary condition. The concept of making toilet is fast growing even in village areas, where toilet till last two years did not exist. The cost of producing sanitaryware in India is substantially low as compared to the advance countries, because the labour cost and the basic raw materials for manufacturing quality sanitaryware is available at very cheap rate and in abundance. Because of our low cost of production, Indian sanitaryware are very competitive in the neighboring countries and hence export from India is also growing everyday. Current Market Size:



The Indian Sanitaryware market is worth around 500 crores for the year 2001-02 with an annual market size of around 8 million pieces. This represents a yearly growth rate of about 3-4%.

Outlook for Sanitaryware Industry in India: In the next decade, India is expected to be one of the world's fastest growing countries for sanitaryware consumption. The sanitation penetration has more than trebled from 8% in 1982 to 18% in 1994 and to 29% in 1999. The comparative penetration levels in neighboring countries are as follows: Pakistan: 50%, Sri Lanka: 65%, Malaysia: 94% and Thailand: 96%. The government impetus to improve hygiene and sanitation is likely to increase the demand for sanitaryware in India. Moreover the increasing urbanization of India and the consequent requirement for residential and commercial buildings will be a major driver for growth of sanitaryware. Along with this the focus of the central and state governments to provide housing facilities to the poor, is also expected to generate demand. The National Housing Policy formulation that envisages "Housing for all" by the end of Ninth Plan period is a big step towards this. Indira Awaas Yojana, Samgra Awaas Yojana is programs for providing housing to the rural poor is a key step taken by the government in this area. The housing development organizations like HUDCO, State Housing Development Boards and Rajiv Gandhi Rural Housing Corporation Ltd. are also playing a large role in this initiative. It is estimated that there is currently a demand for 20 million housing units in India. Further, a significant number of the 115 million housing units across the country will need reconstruction for improvement. Therefore a replacement market will emerge, though currently original equipment sanitaryware market accounts for nearly 90% of the market.



Company Profile
Introduction to CERA Sanitaryware Limited: Cera Sanitaryware Limited (CSL) is one of the pioneers in the Sanitaryware segment in India. CSL was founded in the year 1980 as a division of Madhusudan Industries Limited. It is based in Kadi, Gujarat. Realizing the future growth prospects of this division, in the year 2001, management thought it worthwhile to have independent identity by de-merging and transferring the entire business to a new company. The new company was named Cera Sanitaryware Limited It is now the third largest company in the organized sector with over 20% market share. It is also the largest and only listed company in pure Sanitaryware space. CSL is the first sanitary ware company to use natural gas and the first Indian sanitary ware company to have ISO 9002 and ISO 14001 certifications for its products. . The first sanitary ware company to use natural gas, Cera has been on the forefront of launching a versatile color range and introducing the bath suite concept. It also launched innovative designs and water-saving products. The twin-flush model launched in India by Cera for the first time, it reduces the water needs of households considerably. WCs designed to flush in just 4 liters of water is another notable innovation by Cera. Based in Kadi, Gujarat, Cera Sanitaryware Ltd. uses German technology, which has ensured Cera’s superiority over others in quality. Established with an initial capacity of 3,600 MTPA, the plant has undergone several periodical up gradations and modernizations to expand to 15,000 MTPA. To achieve growth in the rapidly changing retail market in the country, Cera, has launched its one of a kind Cera Bath Studios in Ahmadabad, Bangalore, Chandigarh, Kolkata, Cochin and Hyderabad. With the opening of the Cera Bath Studios, the discerning consumers, architects and interior designers can have full view of the Cera’s premium ranges of WC’s, Wash Basins, Shower Panels, Shower Cubicles, Bath Tubs, Shower Temples, Whirlpools, CP fittings etc. Cera Bath Studios will complement its existing network of 400 distributors and 4000 retailers. Several Bathrooms are displayed live, so that the customers can get a feel of Cera’s vast range of products. Soon, Cera will also launch premium Spanish Tiles in Indian market.



The company is poised to become a total bathroom solutions provider. Having shown a growth rate of more than 20% since last 3 years, Cera Sanitaryware Ltd. today is the fastest growing sanitary ware company in India. History of Cera Sanitaryware Limited: Vikram Somany, Chairman & Managing Director of Cera Sanitaryware Limited. Mr. Somany possessed entrepreneurial spirit even while he was managing Madhusudan Industries Limited in Gujarat. This company was into production of vegetable oils and vanaspati. The turning point came into the company when Mr. Somany met a government delegation in 1978.When he signed the MoU to commence the sanitary ware manufacturing unit in Kadi in North Gujarat using natural gas, the first of its kind in India. It was a kind of milestone. And it was just the beginning. Of course, one might argue that Mr. Somany had entrepreneurship in his blood and had also inherited the understanding of this industry. His father had rich experience in sanitary ware. He along with his brothers had pioneered sanitary ware in India in the early sixties by setting up a manufacturing unit, Hindustan Sanitaryware, in collaboration with Twyfords of UK. Yes, this did give Vikram Somany some kind of background. Also, there was a market opportunity. But Cera's success does not rest on these two factors. It rests on his ability in transforming the opportunity into a business success. The opportunity was open for others as well but Cera made the most of it. Though those were the days of sellers’ market for sanitary ware, most companies, which went into production around the same time as Cera, did not succeed later. So what was it that Cera did different? The quality of Cera matched international norms. Cera focused on creative designs and paid equal attention to after-sales service with the differentiating factor. Moreover, Mr. Somany did not neglect the other relevant business aspects as well. Cera went on to create history with its advertising campaign in the early 1980s: Your Bathroom is a Room Too…" An entrepreneur is successful because he understands and respects the three Cs: customer, change and competition. Apart from Cera, the other two major players are Parry ware and Hind ware. Both have larger production capacities than Cera currently Cera, however, is now expanding its capacities



To maintain that edge in the market, Cera keeps upgrading and increasing its product portfolio regularly. Cera also recognizes its responsibility towards environment. Like the other two major players in the organized sector,. In fact, it’s gone a step ahead. Well, looking at Cera's track record, Mr. Somany's vision is soon likely to be transformed into reality. He is himself quite confident about it because he has built a strong team. Success tips from Mr. Somany of Cera Identify market opportunities Create a dedicated team and give it full operational freedom Concentrate on brandbuilding right from the beginning Recognize social and environmental responsibilities Follow international norms of quality Keep innovating the product offerings Provide good after-sales service.



• • • To setup and carry out research and development for the manufacture and development of Sanitaryware products. Provide high quality to sanitaryware products. The Company is aiming to achieve 50-60% of market share for every product.

To be a total home solutions provider in the long run, providing products for every room in the home.



1. Sanitaryware:

1.1 Premium Collection a) Clair b) Cornet c) Calibre d) Casino 1.2 Regular Collection

a) EWCs & Squatting Pans b) Sinks and accessories c) Washbasin d) Urinals & Sensors e) Exclusive Export Range 1.3 Senator collection a) Calida Table Top b) Capsule Wash Basin c) Casablanca Bath Suite d) Celebrity Bath Suite e) Chancellor Bath Suite f) Clarion g) Cosmo Bath Ware e) coupe f) Cruse Bath Suite



1.4 Wall hung basin

a) CLAIR (EWC Wall Hung) b) CALIBRE (EWC Wall Hung) c) CIRCLE (UNDER-OVER COUNTER) d) CLASSIC (EWC Wall Hung 'P' -SEAT COVER) e) COMET (Counter Top Wash Basin) f) OVAL (Under, Over Counter Wash Basin) 2. Glass Basins

2.1 Cathie_GB152 Glass Basin 2.2 Charmaine_GB141 Glass 2.3 Chrystina-Tempered Glass Basin 2.4 Cleo_GB115-Glass Basin 2.5 Cleopatra_GB131 Glass Basin 2.6 Correa_GB120- glass basin 3. SHOWER RANGE:

3.1 Cadet_8841- Shower Partition 3.2 Candila-Shower Cubicle (with shower tray) 3.3 Cocoon-Shower Cubicle (with shower tray)



3.4 Cupid_Shower Tray, Hot & Cold Mixer with divertor, Shower Jets Rain-Shower & Hand-Shower, Foot Massager. 3.5 czarina_8711-Bath Tub with Whirlpool, Hot & Cold Mixer with divertor. 4. WHIRLPOOL & BATH TUBS:

4.1 Carol-Bath Tub 4.2 Citadel Bath Tub 4.3 Colleen_8012-Whirlpool, Hot & Cold Mixer with Divertor, 4.3 Corner Panel (One-Piece) corner. 4.4 Cushan-Hot & Cold Mixer with Diverter. 5. Pozzi Ginori



International presence and exports:
CERA has exported, in the past, to developed countries like the US, huge quantities. However, as the domestic market was giving better realization, CERA has to curtail its exports. Currently, CERA has presence in several markets like Gulf, New Zealand, Greece, South Africa, etc. With the production going up in the coming months, CERA is now looking at export market more seriously and talks are on with certain parties for OE supplies.

World Technology:
To keep ahead of competition, Cera has always kept its technology ahead of rest of the players in India. It took help from ceramic technology suppliers from several countries in Europe time and again so that its process and products are of international norms. It also helped Cera bag large export orders from the US, unmatched by any other Indian sanitaryware company. Cera could easily make products conforming to ANSI, apart from European, Australian, Canadian and Indian norms. CERA has been constantly using internationally renowned consultants in the ceramic field to upgrade its production processes, yield and finished goods quality. Product innovation has been Cera’s forte. One after the other, Cera launched not only new designs, but even new innovations in India. The first was bathsuites—a unique design concept consisting of WCs, wash basins, bidets and accessories, giving the bathroom a distinct personality. A series of bathsuites—Crowne, Conca, Capri, Cornet, Comet, Clair, Cognac, Celebrity, Celeste, etc.—were launched in quick succession. Cera is also credited with launch India’s first monoblock EWC, Cologne and now has an array of one piece ewcs & wash basins to its kitty.

Water scarcity has always been a concern in most parts of India. When there is shortage of water, can we not think of conserving it, by sending less water per flush down the drain? This concern was brainstormed by our technical and research personnel, designers and quality assurance and marketing personnel and thus the concept of twin action flushing was born. CERA found that in most households, a WC is used more as a urinal and still it was using 8 to 12 liters of water for each flush. Cera then came up with the idea of half flush along with full flush. A household can CITY COLLEGE 12

save substantial quantity of water by installing twin flush. Even where water is available in abundance, we advise twin flush because the cost of electricity for pumping extra water to overhead tank can be saved. In India, ever since cera pioneered the twin action coupled closets two years back, it has caught the fancy of all architects, plumbing consultants, trade, customers and even competitors. One after the other, all manufacturers commenced twin action. For the economy range, Cera have also launched twin flush model of Plastic Cisterns.

Entry barriers for CERA in organized sector:
The entry barriers for organized sector are-huge manpower requirements, since sanitaryware manufacturing is highly labor intensive, non-availability of standardized raw-materials (every manufacturer has to source raw materials from mines and have its own quality assurance systems), low market size (the market currently is estimated to be just around Rs7bn) and innumerable number of unorganized sector players who thrive partly on government policy of levy-exemption and partly on evasion of taxes. Organized sector currently contributed nearly 50% of volume sales in India. However, as quality consciousness and brand-awareness are increasing among consumers, over a period of time, the unorganized sector is likely to go up considerably. Currently, the replacement market is estimated to be just 10% of the total market. However, as the market matures, it is likely to go up exponentially.



Board of Directors

Managing Director

Vice President Sales

Vice President HRD & Personnel

Vice President Finance

Vice President R&D

Vice President Projects

Vice President Marketing

Regional Sales Manager

HRD Manager

HRD Manager

Marketing Manager

Sales Officer

Asst. Manager

Quality Assts.

Project Manager

Asst. Mrkg. Mgr

Market Intelligent Assistants


Manager Accnts Factory Accnts.

Manager Tax

Regional Mrkg. Mgr

Field Officers Market Intelligent System



Board of Directors: Vikram Somany - Chairman-cum-Managing Director Sajan Kumar Pasari – Director O P Bhandari – Director D P Goyal – Director Shree Narayan Mohata – Director Vidush Somany - Executive Director S C Kothari, - Whole Time Director Senior Management: S C Kothari - Chief Executive Officer Santosh Nema - Chief Operating Officer Works: M K Bhandari - President (Works) S K Ghatak - Senior Vice President (Works) R B Shah - Chief Financial Officer Marketing: Atul Sanghvi - Senior Vice President (Marketing) Domestic P K Shashidharan - General Manager (Marketing) Parthiv Dave - General Manager (Marketing) B K Desai - Deputy General Manager (Sales Administration) N V Chidambaram - Deputy General Manager (Marketing) Exports Gaurang Bhatt - Deputy General Manager (Exports) Other Key Personnel Narendra N Patel - GM and Company Secretary




Functional Area


Manufacturing Department

Financial Department

Marketing Department

Personnel Department has got a vital role to play in every business organization. It can be stated that without the active involvement personnel dept. no work can be done in the organization whether it is production work or managerial work. The Vice president heads the personnel dept. of Cera Sanitaryware Ltd. and he is assisted by managers and other staffs. All the recruitment selection and Placement and salary fixation jobs are done by this Dept. In this unit of company, there is a total strength of 20 employees the number of managerial staff is 7. The contractor to whom they have been given fixes the remuneration of those employees. Human resource is present in abundance and skills are traditionally inherited. The owner usually deals with management issues and marketing related activities. Most of the labor is semi skilled and are trained on job. There is no specialized marketing or accounts department. They facilitate their sales only on the basis of personal contacts and no proper accounts are maintained therefore certain problems related to tax return, monitoring and evaluation are faced. Only primary or intermediate level employees are handling accounts. Glazing supervisor, Body supervisor, Kiln



supervisor, Designing or molding in-charge and accountant are considered middle level management that are ceramics diploma holders or experienced persons and also easily available in the market. The overall working of this unit takes place in a single shift i.e. from 8.30 to 5.30, two tea breaks and lunch break is given between this timing. Function of Personnel Department  Salary computation  Salary disbursement  Leave Marking  Attendance  Manpower Planning  Recruitment  Transfer and promotion Cera Sanitaryware Ltd obtains its employees for performing both administrative and operative jobs through various modes. Lower level and middle level employee are being selected from the local area itself where as managerial employees are recruited by the following modes.  Newspaper Advertisement  Weekly Advertisement  Recruiting and selecting from other reputed companies  Transfer from other units Selection procedure The company place advertisement for the prospective employees and the application received for different post are scrutinized by the personal dept. All the application are scrutinized or the basis of the selection criteria followed by the company. The company for different jobs has fixed different qualifications. For production workers, technical qualification is compulsory where as for managerial employees minimum qualification is graduation R&D and quality assurance employee should be Graduate with Diploma / Degree in Material Management. Qualification for Finance In-charge is C.A. with relevant experience. CITY COLLEGE 17

Test After having scrutinized the application received, next step is conducting different tests. Tests are conducted to measure the candidate’s abilities like 1. Mental caliber 2. Physical Fitness 3. Subject Knowledge 4. Communication skill etc Interview Interview is a formal consolation to evaluate the aptitude of prospective employee it is face- to- face and observation method to evaluate whether the candidate is suited for the post to which he has applied After the interview the interviewer comes to know about the skills and abilities of the candidate. Final selection Candidates who successfully complete the interview will be selected to the particular job. Placement and orientation Placement is the final step in the selection process. It is the process of assigning the employee with the job for which he/she has been selected. Proper placement is necessary in order to avoid employee turnover. Proper placement also helps in reducing the rate of absenteeism and accident rates. Training Employees are given adequate training in order to make them familiar with the work for which he/she is selected. Both on the job and off the job training is given to the employees. Through training employees are imparted with the basic knowledge and skills for the effective performance of job.



Promotion Promotion is granted to the employees on the basis of performance on their respective jobs. Experience is also taken in to consideration while granting promotion to employees. Remuneration system Remuneration package of Cera Sanitaryware Ltd is fixed in accordance with the common industrial standards. The fixation and disbursement of remuneration is entrusted with the personal department. The components of employee remuneration in Cera Sanitaryware Ltd are as follows: 1. Salary/Wages 2. Provident fund 3. ESI 4. Bonus 5. Labor welfare fund The contribution to P.F. and ESI are done in accordance with section 5 of the employees PF and miscellaneous act of 1952. The remuneration to workers is subject to revise after negotiation between union and management. Percentage increment is made after discussion with unions. Attendance Control The company issues an attendance card to every general worker, which contains particular columns for each day of every month. The security at the gate will mark the attendance in the card and in the register, which is kept with him .Particular registers are maintained for managerial staff. Total attendance is calculated with this card in every month and wages and overtime wages are calculated. Leave The company provides total of 13 days public holidays plus Sundays in a year. Sick leaves are also allowed to workers for sufficient period. Maternity leave is allowed to women workers.



Other welfare facilities First Aid The company is maintaining a first aid box, which contains first aid medicines. Uniform The company provides uniform to all the employees in the organization. The uniform of managerial and general workers is different Healthy and Safety The company provides all the necessary facilities to protect the health of its employees. Strict hygienic measures are being observed inside the factory. Employees who deals directly with chemicals are provides with gumboots, Hand glows and masks. Recreation The company organizes an annual meet of its employees every year. It includes cultural activities performed by the employees



In macroeconomics production is the act of making things; in particular the act of making product that will be traded or sold commercially. Production decision concentrates on what goods to produce, how to produce them, the cost of producing them and optimizing the mix of resource inputs used in there production. This production information then can be combined with market information (like demand and marginal revenue) to determine the quantity of product to produce and optimum price. Product design is based on: • • • • • Consumer acceptance Manufacture capability Developing capability Quality consideration By product possibilities Under production department Company have these following units: • • • • • Quality assurance Department Purchase Department R & D Department Stores Department Maintenance Department Quality assurance Department: A separate quality assurance department is functioning in this unit to ensure that all the products meet the required quality. The quality assurance dept. is entrusted with the responsibility of preparing quality control plans and measures and evaluating product quality.



Important Function 1. The department makes sure that the raw materials comply with the quality specifications by collecting samples. Raw materials are accepted if it conforms to specified quality and are rejected if the raw materials do not comply with the specified quality. 2. The department checks the quality of output after the completion of each stage of production. 3. The department attends the customer complaints on quality aspects and takes corrective action. 4. The department ensures that necessary actions have been taken for the assurance of quality of the final product. Purchase Department: The purchase department is responsible for the continuous availability of raw material to the production department. The production department should see that all the required materials are purchased at the right time in the right quantity at the right price. Continuous availability of all the raw material are necessary to keep the production flow uninterrupted. The company makes purchases from suppliers outside as well as inside the state. Purchase Procedure: The company prepares a detailed purchase budget at the beginning of every year, which contains the item and quantity to be purchased of each item. The bill of materials can also be used to know the requirement of raw materials for a certain period of time. The purchase in-charge, after receiving the purchase requisition form initiated by the storekeeper makes necessary arrangements for inviting tender for supplier selection. The supplier selection then company conducts vendor evaluation by collecting complete information about the suppliers. While evaluating supplier’s information like creditworthiness, past experience, delivery time, capacity to supply, mode of payment are collected and evaluated. An approval list of suppliers is prepared after the completion of vendor evaluation. After having selected the supplier, the purchase department proceeds to place the order for materials, specifying the details of goods. The purchase order contains details such as order number and date,



suppliers name & address, rate and number of items ordered, mode and date of delivery etc...... The dept sends reminder to supplier for the timely delivery of goods. Goods are verified at the time of receiving with the help of delivery note sent by the supplier and the purchase order. Quality assurance is done by quality department by taking samples from the arrived materials. Goods are received only after the completion of quality and quantity inspection. This follows the preparation of material received note. R & D Department: A well- equipped and well-organized R & D department is functioning under Cera Sanitaryware Ltd to develop new products and to improve the existing products. The department conducts detailed research before the introduction of every new product. The company is giving more attention and importance on R & D. Well qualified and dedicated staffs are the main strength of the R & D department the company’s latest product Pozzi Ginnori is formulated after conducting various research. A big R & D lab is being constructed with in the premises of this unit. The R & D department is headed by R & D in-charge and he is assisted by R & D assistants. The R & D department is playing a vital role in the success of every products of the company. The human resource of R & D division includes qualified chemists and trained laboratory technicians whom implements internationally acknowledged analytical procedures. It can be stated the reason for the increasing use of the company’s products is the effort of its R & D department, which formulates quality products. Stores Department: Stores Department is responsible for storing materials and finished products. Stores department is headed by storekeeper and he is assisted by assistants. This unit has a centralized store and it is from here materials are dent to various departments. The departments keep the finished good and all the raw materials required for the production. Raw materials are issued according to the requirements from respective departments.



Functions: 1. The department checks the weights of the raw materials when they are received. 2. The department issues raw materials to the production department. 3. The stores department maintains different types of books and registers for the proper control of materials. Various records are maintained in stores department are 1. Goods Received note 2. Stock Register 3. Material Purchase register 4. Quality Register (for recording items of low quality) Maintenance Department: The maintenance department is responsible for the smooth and proper working of all the machines. This department ensures that all the machines are maintained properly which is necessary for the uninterrupted flow of production. The maintenance department is headed by maintenance in charge and he is assisted by maintenance staff. The maintenance department performs mainly 3 types of maintenance works namely • • • Preventive maintenance Periodic Maintenance Break down Maintenance Preventive maintenance The maintenance works done for the prevention of machine break down is known as preventive maintenances. Lubrication, oiling, greasing etc. are the examples of preventive maintenance. Periodic Maintenance Periodic maintenance is done monthly or weekly and it is a part of preventive maintenance. Examples of periodic maintenance are cleaning and over hauling.



Break down Maintenance: Break down maintenance is done at the time of breakdown of machines. Break down of machines are informed to the department when it occurs and the department attends the problem.

The operations/Manufacturing process:
Machinery Suppliers: Spray booth, Glaze Containers, drums and kilns are the machinery used for ceramics sanitary ware factory. Kilns are designed by ceramics engineers and manufactured by the kiln makers. There are about 12 kiln makers which are experts and fulfilling the need of industry. Glaze containers, spray both and drums are prepared by the engineering sector of the Cera. Raw Material Suppliers: Supply chain is crucial to this field and without proper raw material supply these units cannot keep up with the production. There are about 4 to 5 companies supplying raw material to ceramics industry in Cera. These suppliers procure clay from mine owners1 and import barium carbonate and china clay from china and zirconium from England, USA, Italy, and Malaysia for fulfilling the raw material requirement of Ceramics Sanitary ware industry. However raw material supply is irregular and manufacturers have to face late delivery of raw material or shortage of raw material. Analysis of Production Operations: 1. Raw Material: Raw materials for body include Quarts, Feldspar, China clays and Ball clay Mianwali clay, K.D. 7 Stone and K.D. 10 Stone. Raw materials for glaze include Quartz, Feldspar, and Limestone, Zinc oxide, Barium oxide, Zirconium and ceramic colors. Plaster of the Paris is the material that is used for modeling and molding of the Ceramics sanitary ware.



2. Slip Preparations and Glaze Making: For the slip preparation the raw materials are mixed with water as per the requirement. Proper composition along with the sufficient amount of water then gets loaded to the ball mills for grinding. Glaze is a glasslike, multi-ingredient, silicate thin layer, which adheres to the surface of ceramic body. It is usually sprayed upon dry body by manual or automatic spraying method, which after firing produces smooth, glossy, and surface with beautiful color and luster. So properties of glaze have large influence on quality of products. Generally ball milling is used to prepare glaze. 3. Casting and Drying: Slip is cast into plaster moulds. Due to the absorption and water character of porous moulds, an even thin layer gets formed on the surface which becomes thicker with time. When a desired thickness is arrived, surplus slip is poured out. Finally the layer continues to retract by de-watering resulting in the gross body. Before next process, all products need to be dried to a low water content to increase the strength of body, which is called drying. 4. Glazing: There are many glazing methods such as spraying glaze, dipping glaze, pouring glaze, brushing glaze etc. Sanitary wares are mostly adopted spraying glaze method because large volume complicated shape, low strength of body. Spraying glaze may be manual glazing or automatic glazing. Manual glazing is done in a booth with sufficient de-dust installation, and automatic glaze spraying is done on the conveying belt. 5. Firing: These sprayed clay wares are then taken to the kiln for firing. As a result the bodies will take place a series of physical and chemical reactions, and will take a fixed shape. The bodies are put in the entrance of tunnel and the products are pushed out from the exit. Fuel is burnt in the resisting firewall on both sides of tunnel. The tunnel kiln is consisting of three zones. i. Preheating zone



ii. iii.

Heating zone Cooling zone

The heating zone has burners on the both sides, in the third section the product cools down by exhausting. The temperature of every section is strictly controlled by automatic ventilation equipment and the temperature-controlling facilities called thermo couples to ensure to fire every product evenly. Continuous kilns are classified as roller kilns and tunnel kilns, the roller kilns support and convey products by high temperature resistance ceramic rolling stick. In the tunnel Kiln, kiln cars are used that are made from steel frame wheels on which low mass refectories, silicon carbide board etc. are built to support products. These cars are pushed by hydraulic Pusher.

6. Inspection, Repairing, Re-firing and Packing: This is the last process of production. Finished products are determined according to stipulated standards to select passed products and un-passed parts by repairing and refiring. Passed products are carefully packed and then send to customers. 7. Quality Assurance: Currently the local market is being invaded by the cheap and better quality Chinese ceramics products. This invasion along with strong friction from other international manufacturers, local manufactured products are suffering from huge losses. Their biggest concern is the quality which requires high manufacturing cost and over whelming rejection rates (7 to 8 % scrap rate is common to this industry and sometimes it crosses this threshold too). One of the main causes of this problem is the low and inconsistent quality standards. There is no standards conformance control at the source (mines) from where the clay is excavated and manufacturers don’t have any facility where this raw material can be pre-processed before being used in production line. The results are as follows: i) - Finished products show cracks after whole process of casting and baking has been undertaken which cause loss of man hours, machine hours and finance. ii) - Inconsistency of material causes pin holes and cracks which result into an extra fragile product which can rupture during use causing a fatal loss of customer satisfaction and further market penetration.



iii) - Few manufacturers are setting up their own pre-processing setups which do not provide required material refinement and add to extra burden of pre-processing cost resulting in higher cost of production. iv) - Manufacturers can import preprocessed material from china and other countries but it would cost them more than double. Performance by Production Department: The use of German know-how ensured Cera’s technological superiority over others in uncompromising quality. Established with an initial capacity of 3,500 MTPA, the plant underwent several periodical up gradations and modernizations to reach 15,000 MTPA. The plant is under massive expansion and will be largest single location manufacturer in India as far as sanitaryware is concerned.



To keep ahead of competition, Cera has always kept its technology ahead of rest of the players in India. It took help from ceramic technology suppliers from several countries in Europe time and again so that its process and products are of international norms. It also helped Cera bag large export orders from the US, unmatched by any other Indian sanitaryware company. Cera could easily make products conforming to ANSI, apart from European, Australian, Canadian and Indian norms. CERA has been



constantly using internationally renowned consultants in the ceramic field to upgrade its production processes, yield and finished goods quality.

Suggestion to increase Production Capacity: • • • Glazing by robots to improve the consistency. Fast Firing Kilns to improve the flexibility. Since the manufacturing of sanitaryware involves a high degree of manual labour, there is a noticeable trend of movement of manufacturing from the developed countries to developing countries to reduce manufacturing costs.



Finance is said to be the life blood of any business for proper allocation and management of the funds organization requires a finance department. Cera is having a separate finance department to take care of all these activities the following is the departmental chart of the same.

Functions of the department: 1) Maintaining proper books of accounts 2) Reporting to the management issues relating to finance 3) Obtaining of funds from various sources and using it efficiently. 4) Tax planning 5) Controlling (regular assessment of financial activities)



Financial analysis:
Cera Sanitaryware Limited (CSL), the largest and only listed company in pure sanitaryware space in India announced all time high revenue of Rs.107.58 crore for the year ended March 31, 2007 up by 33.4% from Rs 80.64 crore. Net Profit has crossed the Rs 9.07 crore marks from Rs. 5.90 crore, a jump of 54% over the previous year due to higher sales and better operating margins. Gross profit of the company has crossed Rs.17.52 Crore up by 51% from 11.64 Crores in previous year. Sanitaryware is growing at more than 28% since the last 3 years and it is the fastest growing sanitaryware company in India today. CSL’s total income at Rs. 34.34 crores for the fourth quarter ended on March 31, 2007 was up 42% compared to Rs .24.26 crores in the corresponding quarter of the last year. Net Profit of the company stood at Rs. 3.18 crores, registering growth of 48%, compared to a net profit of Rs. 2.15 crores for the corresponding period in the previous year. The Operating Profit for Q4 grew by 75.49% yoy from an operating profit of Rs. 4.08 crores in the corresponding quarter of the last year. Other expenditure Rs. 27.18 crores has gone up by 34% compared to other expenditure of Rs. 20.22 crores for the corresponding period in the previous year. The company's Net Sales, PBIDT and PAT have registered a CAGR of 26.80%, 43.81% and 65.60% respectively, over the last five years. Operating Margins for the company increased to 19.80% in the current fiscal compared to 13.03% last year. EPS for the year 2006 – 07 rose to Rs. 16.76 v/s Rs. 10.98 for 2005 – 06 According to the company's audited results for the quarter approved by the Board of Directors on May 16, 2007, following are the financial highlights:



(Rs Crore)

Quarter IV Particulars Ended 31/03/07 Total Revenue Operating Profit 34.34

Quarter IV Ended 31/03/06 24.26 % Change

Year Ended

Year Ended % Change

31/03/07 31/03/06 80.63 33.42%

41.55% 107.58



75.49% 19.80

13.03 8.97 5.90 16.16%

51.96% 55.85% 53.73% 13.86%

[PBDIT] PBT 5.17 PAT 3.16 OPM 20.85%

3.26 58.59% 13.98 2.15 47.90% 9.07 16.81% 24.04% 18.40%



Marketing Department:
Marketing is a subject having wide spectrum. Marketing deals with the whole process of entering markets, establishing profitable positions and building loyal customer relationship. As market change, so does marketing. Marketing is no longer a company department charged with a limited numbers of tasks. Managing and advertising. Sending out direct mail, finding sales leads. Providing customer service. It must drive the company’s vision, mission and strategic planning. Marketing is about deciding who the company wants as its customers, Which needs to satisfy, what products and services to offer, what prices to set, what communications to send and receive. What channel of distribution to use and what partnership to develop. MARKETING STRATEGIES All marketing strategies are built on STP- segmentation, targeting, and positioning. Companies discover different needs and groups in the market place, target those needs and groups that the companies can satisfy in a superior way, and then positions its offering so that the target market recognizes the companies distinctive offering and image. No company can win, if its product and offering resembles every other product and offerings. Today most companies are guilty of strategy convergence namely undifferentiated strategies. Companies must pursue meaningful and relevant positioning and differentiation. Companies normally reformulate their marketing strategies and offerings several times. Economic condition changes, competitors launch new and the produce passes through new stages of buyer interests and requirements. Consequently strategies appropriate to each stage in the products life cycle must be developed.



MARKETING STRATEGIES OF Cera Sanitaryware LTD. Whole the marketing strategies of company is formulated and controlled by the head office at Ahmedabad directly. There is no involvement from the production units situated at different part of the country. The following are the marketing strategies adopted by the company:1. To deliver quality products at reasonable prices to all the class of the society. 2. Positioning the products in its most suitable manner by developing a unique selling preposition. (Usp) 3. Differentials the products in order to get distinctive identity in the market. 4. Adopting sales promotional schemes for both the dealers and customers. 5. Creating brand awareness in the customers through continuous advertisements and event sponsorship. DISTRIBUTION CHANNELS Marketing channels are set of interdependent organization involved in the process of marketing a product or service available for use or consumption. Channel decisions are among the most critical decision facing the management. The channels chosen intimately affect all the other marketing decisions. The distribution system is a key external source. It ranks in importance with key internal resources such as manufacturing, research, and final sales personal facilities. CHANNEL FUNCTIONS • • • • • • They gather information about potential and current competitors and other actors and forces in the marketing environment. They develop and disseminate persuasive communications to stimulate purchasing. They reach agreement on price and other terms so that transfer of ownership or possession can be done easily. They place order with manufacturers. They acquire the funds to finance investments at different levels in the marketing channel. They assume risk connected with carrying out channel work.



Channel of distribution of Cera Sanitaryware Ltd. The Channel of distribution of the company is functioning very well to meet the aim of reaching the product to customers at the right time. Following is the chain of distribution of the company. Super Stocker Distributors Whole Sellers Retailers Finished products are taken by super stockers from the company and it is the Super stockers who supply the products to the distributors. ADVERTISEMENT In today’s competitive business environment advertisement has got a crucial role in the success of every business organization. No company can win the competition if its advertisement strategies are not properly planned and created. “Advertisement is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor”. Advertisement makes the customers aware about the products and services of the company. It can be seen that, behind the success of every products in that market, advertisement has played an important role. KINDS OF ADVERTISEMENT Information advertising Aims to create awareness and knowledge of new products or new features of existing products. Persuasive advertising Aims to create liking, preference, conviction and purchase of products or services



Reminder Advertising Aims to stimulate repeat purchase of products and service Reinforcement advertising Aims to convince current purchasers that they made the right choice.

Advertisement policy of Cera Sanitaryware ltd. The company makes use of various Medias to communicate its message and product features to the customers. All the advertisement are planned and implemented directly from the head office Different advertisement Medias used by the company are as follows • • • • Newspapers Magazines T.V. advertisement Board and roadside wall advertisements Apart from the above-mentioned Medias the company sponsors events and serials, which are broadcasted in television Sales Promotion Sales promotion, a key ingredient in marketing campaigns, consists of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by consumer. Sales promotions. Purpose of sales Promotion. Sales promotion tools vary in their specific objectives. A free sample stimulates consumer trial, whereas a free management advisory service aims at generating a large term relationship with a retailer. Sellers use incentive type promotions to attract new users, to reward loyal customers and to increase the repurchase rates of occasional users. Sales promotion often attracts brand switchers, who are primarily looking for low price, good value, or premium. Sales promotions are unlikely to turn them into loyal users. Sales promotion used in markets of high



brand similarity produce a high sales response in the short run but little permanent gain in market share. In markets if high brand dissimilarity, sales promotion can alter market permanently. Sales promotion enables manufactures to adjust to short-term variations in demand and supply.

Cera’s product mix and new marketing strategies:
Cera has a mix of products that would cater to all needs of consumer. Cera has top end products like the Senator Collection, the Shower Temples with Jacuzzi features in them. Cera also has the Premium Collection focused at middle end users and the Regular collection which includes the Indian EWCs as well as European EWCs for the lower end customers. In Bath Fittings, the Single Lever Bath fittings are for the elite, followed by the Quarter turn and the half turn fittings meant for people looking for more economical range.

Performance of the Cera Sanitaryware Ltd:
 Cera is now the third largest company in the organized sector with over 20% market share  Cera had posted a growth of over 11 percent in the financial year 2002-03 and grown by another 23 percent in the financial year 2003-04.  The turnover of the company grew from Rs 45.86 crores in 2002-03 to Rs 56.57 crores in 2003-04. With the launch of the premium range, the company expects a growth of another 30 per cent in the financial year 2004-05.  The company reported a 51.79% growth in net profits to Rs 17.79 million for the quarter ended Sep. 2006 as against Rs 11.72 million during the corresponding quarter in the previous year. Sales for this period had increased 27.03% to Rs 246.27 million from Rs 193.86 million. Cera, for the year ended Mar. 2006, had reported a 31.20% increase in sales to Rs 799.47 million as against Rs 609.37 million for year ended Mar. 2005. Net profit for this period had also doubled to Rs 58.99 million as against Rs 23.91 million. The EPS for FY06 stood at Rs 10.98.  It has over 500 distributors and 5000 retailers in the country today.



Policy of Cera Sanitaryware ltd.:
1. Policy of Health and Safety: In order to avoid accidents and unhealthy environments, managers should give high priority to: 1• Reducing the frequency of accidents by good plant design and good operational control; 2• Minimizing the consequences if they occur by appropriate plant design and procedures, but in addition a predetermined set of emergency plans for personnel. 3• Be aware of the possible origin of accidents There are several inputs needed ranging from commitment of the management, involvement of employees and an organised approach. The following issues should be taken into account: 1• Is the management of the company explicitly committed to the continuous improvement of the health and safety situation? 2• Is there a safety / medical officer (full time or part time) in charge of health and safety affairs? 3• Is there a programme for continuous improvement of working conditions and procedures in the area of health and safety? 4• Are operators and other employees actively involved in those programmes? 5• Does the company provide health and safety training and instructions to all relevant personnel, especially the workers dealing with dangerous machinery and / or hazardous chemicals (introductory and on-going)? 6• Is there a good co-operation with labour and safety inspections and reviews? 7• Is there a regular analysis of risks (e.g., once a year)? In order to check the health and safety situation at the company, please look at the following points of attention: 1• Does the company keep record of the sick leave rates? 2• Are sick leave rates compared to peer companies? 3• Is there an overview of the quantity and nature of accidents? 4• Are accidents investigated and reported with a view to improve health and safety? 5• What is the estimated job rotation among operators? 6• How does this compare to other companies in the sector?



7• Is there a planned effort to minimize the consequences if accidents occur? 8• Is there an emergency plan? 9• Does the company organize emergency drills? 10• Is information on possible hazards and risks disseminated to workers? 11• Is smoking prohibited at the production facility? • Are the workers sufficiently equipped with protective gear, such as rubber gloves, inhalation masks, overalls, safety shoes, helmets, protective glasses, etc.? 1 2Workplace facilities 1• Is the workplace clean and tidy? 2• Are distances between raw material equipment and processing equipment kept to a minimum? 3• Are there ample artificial light facilities and are the work spaces well-lit? 4• Are spaces that receive too much daylight properly shielded? 5• Is the indoor climate acceptable in terms of temperature, moisture, draught and air refreshment? 2. Quality policy: Cera’s quality policy is that "quality is the eternal pursue of the company, customers are sincere guide of the enterprise ".company will as always move towards the domestic and foreign markets by the high quality product and faithful service.



 Cera is environmentally conscious and has ISO 14001 certification for ecofriendly plant operations.  Cera has ISO 9002 and ISO 14001 certifications for its products.

 Established with an initial capacity of 3,600 MTPA, the plant has undergone several periodical up gradations and modernizations to expand to 15,000 MTPA.  Established with an initial capacity of 3, 10,000 pieces per annum, the plant underwent several periodical up gradations and modernizations to reach 1.8 million pieces per annum capacity by June 2007.  The year 2006-07 saw CERA grow by 34%, thus becoming the fastest growing sanitaryware company in India.  Having shown a growth rate of more than 20% since last 3 years, Cera Sanitaryware Ltd. today is the fastest growing sanitary ware company in India.  Cera has a production capacity of 1.3 million pieces. Cera is upgrading it to reach 2.2 million pieces by this year end.



SWOT Analysis:
Strengths  Local base for machinery manufacturers  Extensive supplier industry  Strong distribution channel Weaknesses  Non-availability of processed raw materials  High Utilities Cost of utilities (gas & electricity)  Lack of Modern Kiln technology leading to high energy losses (30%) Opportunities  Rising domestic demand for sanitary ware and table ware  Large export potential in sanitary ware in Middle East, Africa and Central Asia.  Exploit local expertise in related sectors, clusters technologies. Threats  Low priced import from china  Changing consumer preferences  Large surplus capacities in the international market.  Large unorganized existence



Future Project:
• Cera is planning to launch Italian heritage of Pozzi-Ginori in the whole part of India. The rich Italian heritage of Pozzi-Ginori is brought to India by Cera.. Pozzi-Ginori is available only in select cities and outlets in India. Cera is planning to launch this Italian heritage of Pozzi-Ginori in the whole part of India. Pozzi-Ginori brings international excellence in designer Sanitaryware in India. Pozzi-Ginori represents the history of Italian art and design in bathroom ceramics. • CERA is planning to launch Sanitec group’s wellness product range including shower boxes and whirlpools soon.



A Study On Customer Response towards Technical Assistance: Objective of the study:
• • To know the Customer satisfaction towards technical assistance To know customers expectations about after sales service provided by the company

Scope of the Study:
This study gives detailed view about customer satisfaction towards after sales assistance by Cera Sanitaryware Ltd. The study focuses on to make a solution for the customer dissatisfaction towards technical assistance those facing by Cera Sanitaryware Ltd. The analysis would be helpful to the management for taking decision regarding marketing strategies and formulating suitable policies to make their business more effective and to make customer satisfied.

Data collection: Primary Data:
Through Questionnaire

Limitation of the study.
Many constraints were involved in doing this study. Some of them are as follows. • • • • • • Time is critical factor limiting this study. To reach every client. The data provided by the company may not be 100% correct as the Company has. Finding and suggestion have been given from personal point of view. Due to work pressure, detailed interaction with the executives was not possible. Unable to find fair responses from various clients. Because there were different response from different client.



Data Analysis
Table No.1 Customer’s opinion about product use: Attributes Not satisfied Satisfied Good Very good Source: Survey data No. of respondent 5 15 22 8 Percentage 10% 30% 44% 16%

Customer’s opinion about product use:
Very good 16% Not satisfied 10%

Satisfied 30% Good 44%

Not satisfied



Very good

Analysis: From the above showing statistics it is observed that in the survey 44% customers have good opinion,30% are sufficient and 16% have very good opinion, only 10% customer have not sufficient opinion about product use.

Table No.2 Method of Technical assistance gets by customer:



Attributes User manual Helpline no.

No. of respondent 25 & 10

Percentage 50% 20% 10% 20%

User Manual Website & User 5 Manual From all above Total no. respondent Source: Survey Data 10 of 50

Method of Technical assistance gets by customer:

From all above 20% Website & User Manual 10% Helpline no. & User Manual 20% User manual Website & User Manual Helpline no. & User Manual From all above

User manual 50%

Analysis: 50% customer has got technical assistance by User Manual.20% from helpline no. and user manual, 10 % from website and user manual. 20% get it from all methods.

Table No.3 Technical assistance provided by company is helpful for customer product: Attributes No. of respondent Percentage



Yes No Total


8 42 of 50

16% 84%

respondent Source: Survey Data

Technical assistance provided by company is helpful for customer product:
Yes 16% Yes No No 84%

Analysis: 84 % of customers are thinking that technical assistance provided by company is not helpful for their product. Only 16% of customers have opinion that technical assistance is helpful for them.

Table no. 4 Customer evaluation about the information present in user manual: Attributes Not sufficient Sufficient Good No. of respondent 30 15 4 Percentage 60% 30% 8%



Very good Total no. respondent

1 of 50


Source: Survey Data

Customer evaluation about the information present in user manual:
Very good 2% good 8% sufficient 30% Not sufficient 60%

Not sufficient



Very good

Analysis: 60 % of customers argued that there is not sufficient information is available in user manual.30 % are satisfied and 8 % have a good & only 2% have a very good opinion.

Table No.6 Customers have problem with: Attributes The use of product The product fitting The product repair For all above Total no. of No. of respondent 13 17 10 10 50 Percentage 60% 30% 8% 2%



respondent Source: Survey Data

Customers have problem with:
The use of product The product repair For all above 20% The product fitting For all above

The use of product 26%

The product repair 20%

The product fitting 34%

Analysis: 34% customer have problem with product fitting, 26% have problem with the use of product.20% facing problem wit product repair & 20 % facing problem in all fields.

• • • • Cera’s have more innovative idea to offer product with new innovation Cera is currently stood on third rank in its production capacity.

Having shown a growth rate of more than 20% since last 3 years, Cera Sanitary ware Ltd. today is the fastest growing sanitary ware company in India. Cera has a production capacity of 1.3 million pieces. Cera is upgrading it to reach 2.2 million pieces by this year end.



• •

Cera Sanitaryware Limited (CSL), announced all time high revenue of Rs.107.58 crore for the year ended March 31, 2007 up by 33.4% from Rs 80.64 crore. Sanitary ware manufacturing is highly labor intensive, non-availability of standardized raw-materials (every manufacturer has to source raw materials from mines and have its own quality assurance systems of taxes).

Many customers are satisfied with the use of cera’s product. Those are not satisfied have not much knowledge about the product use, and have less knowledge about the installation of product.

About 50 % customers have a view that Cera’s product and services are similar like other product in market. According to company report those customer have bought only simple or medium level products.

More then 50 % of customers has got technical information from the user manual. Because user manual is available with every products. Other customers have got it from website or helpline no. because they were unable to find information in User Manual.

• •

About 84% customers are not satisfied with the technical assistance provided by company. Mostly customers are not satisfied with the information available in User Manual. . According to them; It’s not about, how to use, how to fit it, at any problem what should do etc.

According to all data analysis customer have dissatisfaction towards technical assistance. Company is unable to give full satisfaction to its customer.

• • • • Need to give full knowledge about product use to customers through advertisement in magazines, newspaper or TV. channel. Need to make some improvement in products to satisfy its customer. Company has needed to expand its services and handling customer’s queries in a sound manner. There should be all information regarding product use, installation, product features, and emergency repair of product in User Manual.



• • • •

Company should add sufficient technical information in other mediums of information like website. So customer can use alternate way for information. Company should provide technical expert employee for every specific area. Those can personally solve the problem of customer. If company is not providing service to its customer timely. Then there should be provision of compensation to its customer. Introduction of designs to suit handicapped people, closets which are the height of an average chair and therefore more comfortable, lavatories with interesting shapes and designs.

• • • • • • •

The technology of water saving should be in every product. So customer will definitely attractive towards products. The company should launch low unit packs in all categories to drive market penetration and to push volume. The product should be diversified in its maximum categories. More interest should be taken to increase the employee participation in the management of the company. Mechanization should be done at each stage of the production process, which will reduce the number of workers and then reduce the cost of the production. 100% production capacity should be utilized to increase the volume of production.

It is advisable to conduct market surveys before the introduction of new products.

Cera Sanitaryware Limited (CSL) is one of the pioneers in the Sanitaryware segment in India. It was the first sanitary ware company to have ISO 9002 and ISO 14001 certifications for its products. Cera is the first company that launches such equipment those are helpful in reduces the water needs of households considerably. It has more innovative idea to offer product with new innovation. Cera plans to be a total home solutions provider in the long run, providing products for every room in the home.



After the observation of all departments, it is proved that Cera is doing well in all functional areas. It has to need to take care of customer satisfaction and after getting their view company should make improvement in its products.

Books: -Marketing Management, 7th edition, Philip Kotler, published by Prentice Hall India -Research Methodology, 2nd Edition, C. R. Kothari published by New Age International Pvt Ltd. -Company Resources: o Company annual report



o Employee Database o Company journal & Balance Sheet. -Website:




1. Which is your opinion about product use? (1) NOT SATISFIED  (2) SATISFIED  (3) GOOD  (4) VERY GOOD  Please specify if you had any kind of problem in product use: ............................................................ ............................................................................. ………………………………………………………………………………………….. 2. What do you think about the product respect to what you were expecting? (Please specify the reason) (1) NOT SUFFICIENT   (2) SUFFICIENT   (3) GOOD   (4) VERY GOOD  .......................................................................................................................................... .......................................................................................................................................... 3. What do you think about our products respect to the similar ones available on the market? (1) POOR   (2) AVERAGE   (3) GOOD   (4) VERY GOOD  Please specify how they could be improved: .......................................................................................................................................... .......................................................................................................................................... 4. Which type of technical assistance you get from company? (1) User Manual  (2) Website & User Manual  (3) Helpline & User manual  (4) All Above  5. Is the Technical assistance provided by company is helpful for your product? (1) Yes  (2) No  6. Which is your evaluation about the information present in our explanatory sheet/ user manual/ service manual? (1) NOT SUFFICIENT  (2) SUFFICIENT   (3) GOOD  (4) VERY GOOD 



Please specify how they could be improved: .......................................................................................................................................... .......................................................................................................................................... 7. In which field you are getting problem? (1) For the use of product (2) For the product fitting (3) For the product repair (4) For all above 8. Which is your evaluation about the delivery time for the products? (1) NOT SUFFICIENT  (2) SUFFICIENT  (3) GOOD   (4) VERY GOOD  9. Which is your evaluation about the technical assistance by our firm? (1) NOT SUFFICIENT  (2) SUFFICIENT  (3) GOOD  (4) VERY GOOD  10. Do you have any complaint or observation? (1) YES   (2) NO  If YES, please specify: .......................................................................................................................................... .......... 11. Which is your evaluation about the quality of our products in relation to the price? (1) NOT SUFFICIENT   (2) SUFFICIENT  (3) GOOD  (4) VERY GOOD  12. How do you find our prices compared to other companies? (1) More Competitive  (2) Less Competitive  (3) About the Same  13. Do you have any suggestions to improve our products and/or our services? .......................................................................................................................................... ............ .......................................................................................................................................... ............



Cera’s Balance sheet, Ratio analysis, & Income statement
Latest Quarterly/Half yearly As On(Months) Sales of Products/Services Other Income Total Income Total Expenses Stock Adjustments OPBDIT Interest Depreciation Extraordinary Items Prior Period Adjustments Provision for Tax After Tax Profit Equity Capital Reserves Notes to Accounts Income Statement As on( Months ) Profit / Loss A/C Net Sales Operating Income (OI) OPBDIT OPBDT OPBT Non-Operating Income Extraordinary/Prior Period Tax Profit after tax(PAT) Cash Profit Dividend-Equity Balance Sheet 30-Jun-2007(3) 259.62 1.15 260.77 211.53 0.00 49.24 4.01 11.03 0.00 0.00 11.50 22.70 30.38 0.00 Detailed Quarterly 30-Jun-2006(3) 225.58 0.37 225.95 186.24 0.00 39.71 5.53 7.38 0.00 0.00 8.15 18.66 26.88 0.00 % Change 15.09 210.81 15.41 13.58 -24.00 -27.49 49.46 --41.10 21.65 13.02 --

31-Mar-03(12) Rs mn 414.98 417.94 49.28 34.06 15.11 -0.01 0.74 1.65 14.19 33.14 3.23

%OI 99.29 100.00 11.79 8.15 3.62 -0.00 0.18 0.39 3.40 7.93 0.77

31-Mar-02(12) Rs mn 366.72 375.26 46.73 27.48 7.05 0.44 -2.33 0.65 4.51 28.14 3.23

%OI 97.72 100.00 12.45 7.32 1.88 0.12 -0.62 0.17 1.20 7.50 0.86



As on Assets Gross Block Net Block Capital WIP Investments Inventory Receivables Other Current Assets Balance Sheet Total(BT) Liabilities Equity Share Capital Reserves Total Debt Creditors and Acceptances Other current liab/prov. Balance Sheet Total(BT) Ratio Analysis As on OPBIT/Prod.cap.empl.(%) PBIT/Cap. Employed (%) PAT/Networth (%) Tax/PBT (%) Total Debt/Networth (x) Long Term Debt/Networth (x) PBDIT/Finance Charges (x) Current Ratio (x) RM Inventory (days consumption) FG inventory (days cost of sales) Receivables (days gross sales) Creditors (days cost of sales) Op. curr. assets (days OI) Share Statistics As on EPS (Rs.) CFPS (Rs.) Book Value (Rs.) DPS (Rs.)

31-Mar-03 Rs mn 327.21 288.48 0.00 0.00 117.12 93.80 31.12 530.52 Rs mn 26.88 172.50 145.64 88.89 96.61 530.52

%BT 61.68 54.38 0.00 0.00 22.08 17.68 5.87 100.00 %BT 5.07 32.52 27.45 16.76 18.21 100.00

31-Mar-02 Rs mn 320.81 301.16 0.09 0.00 132.38 85.97 27.67 547.27 Rs mn 26.88 161.44 161.15 108.09 89.71 547.27

%BT 58.62 55.03 0.02 0.00 24.19 15.71 5.06 100.00 %BT 4.91 29.50 29.45 19.75 16.39 100.00

31-Mar-03 8.79 9.00 7.12 10.41 0.73 0.41 3.28 1.30 66.02 71.81 74.65 88.01 209.00 31-Mar-03 2.64 6.16 37.09 0.60

31-Mar-02 7.53 6.99 2.40 12.59 0.86 0.50 2.33 1.24 81.02 100.91 76.14 120.09 239.00

31-Mar-02 0.84 5.24 35.04 0.60



Cera Sanitaryware Ltd. * Net sales up 40.78% for Q4FY07 at Rs. 33.76 crores. * Operating margin for Q4FY07 stood at 19.46% against 15.68% for the same period last year. * PAT up 51.43% y-o-y at Rs. 3.18 crores. 1. Net sales were up by 40.78% to Rs. 33.76 crores in Q4FY07 over Q4FY06, which is explained by strong demand and higher realization. 2. The Operating Margins (OPM) of the company stood at 19.46% for Q4FY07 in comparison to 15.68% in the same period last year. The improvement came mainly from increasing share of trading goods in total sales, the margins for which are better and lowering of other expenses. 3. Profit after tax increased by 51.43% to Rs. 3.18 crores due to higher operating profit, lower interest and depreciation cost relative to sales growth. 4. As the demand for sanitaryware products is increasing due to the growth in housing and non-housing sector, CSL has planned to increase its manufacturing capacity by 67% by July, 2007. Earlier the capacity expansion was expected to be operational by April, 2007 but got rescheduled due to delayed supply of capital goods, expansion programme will be completed by July 2007. The total capex for the expansion is Rs. 35 crores which would be funded by a mix of debt and equity (50:50). Cera Sanitaryware board recommends dividend: The board of directors of Cera Sanitaryware recommended dividend of Rs 1.10 a fully paid equity share of Rs 5 each. The above decision was taken by the board at its meeting held on, May 16, 2007.



Cera Sanitaryware disclosed a substantial jump in net profits for the quarter ended December 2006. During the quarter, the company witnessed a 41.90% rise in profits from Rs 15.80 million to Rs 22.42 million.

Shares of the company were trading up Rs 2.00, or 1.56%, at Rs 130.00, at the BSE



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