PROJECT REPORT OF

Cera sanitaryware ltd
ON Impact of foreign sanitaryware brands over Indian market

Submitted byAbhishek Gera (+91-9711972217) Amity Business School

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Self Certification by the Intern

I hereby certify that I, Abhishek Gera have successfully completed my internship with “Cera Sanitaryware ltd” in the month of may june‘10 from (3rd may 2010 to 30th june 2010). This is also to certify that this report is an original product and no unfair means like copying etc… have been used for its completion.

Name: Abhishek Gera Signature: Date

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PREFACE
As an extra advantage in my Graduation Course, I have done training at cera sanitary ware LTD. at Delhi from 03rd may 2010 to 30th june 2010 (Eight Weeks) During my training, I have been given practical exposure to the field of marketing and Sales. I was to deal directly with various workshops in Delhi It was quite an enriching experience for me as we had to deal with different having different personalities.

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Acknowledgement
No task is a single person effort, same is with this project. Thus I would like to extend my sincere thanks to all those people who helped me in accomplishing my project. I owe my project success to all members for providing us with this wonderful opportunity and guidance. I would like to again extend my special gratitude to fellow trainees and management staff for providing excellent Guidence for the successful completion of this project. This project provided me a platform to increase my knowledge and empowered me with a better understanding of concepts in the real world scenario. And last but not the least special thanks to “cera sanitary ware ltd.” who accepted me in spite of my inexperience in the field and gave me the opportunity to work and learn with them.

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1 2 3 4 5 5 6 7 8 9 Topic Acknowledgement Summer Internship Objective Introduction to sanitaryware industry Page Number 4 6 7 Outlook for sanitaryware industry in india Introduction to cera sanitary ware ltd 12 History of cera sanitary ware ltd Mission and vision Analysis Study of customer response Production capacities of organized players 14 16 17 25 30 11 5 .Table of Contents S. No.

 To know the overall development of Cera Sanitaryware Ltd 6 .OBJECTIVE  To gain knowledge of impact of foreign sanitary ware brands over Indian market  To know how Cera works and method adopted.

more than 50% of the urban population does not 7 . The U. As per the study. In 1994.N. whereas in the rural community only 14% had access. 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. This reveals an acute housing shortage. There is a large difference in amenities between the urban population and the rural. predicts an increase in the population of 1. the rich and the poor. which is steadily growing.6% per annum. According to the Government estimates. highly populated Country of around one billion people. Sanitation is a must for every individual of our society. but 200 million households. 70% of the urban population had access to adequate sanitation. In 1991. with an economy. There is a widening difference in income between different regions. there were an estimated 125 million dwellings in India (1995). approximately 64% of urban households had some kind of toilet facility compared with 9% of the rural areas.Introduction to Sanitary ware industry India is a large.

companies have adopted a very aggressive advertisement campaign. The unorganized sectors have adopted local 8 .D. The demand for high value Sanitaryware in India is growing very fast. M/s. Neycer India Limited). Swastik Sanitaryware Limited.access to sanitation facilities. 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. 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. which has been accepted and appreciated. using latest technology and best of Ceramic Raw Materials available in India. M/s. Beam Casting and have gone in for latest imported Fast Firing Cycle Kiln Technology. 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 demand for Sanitaryware in India is growing @ 15% -17% every year. E. Hindustan Sanitary Industries Limited. The organized sector consisting of 5 companies (M/s. Madhusudan Ceramics. M/s. manufacturing sanitaryware for the last 15-20 years and have established their Brand image. M/s. Parry. The sanitaryware industry in India is divided in two sectors. The Companies have also upgraded their manufacturing system by introducing Battery Casting. In order to educate the customers in India to go for quality products and also for higher value sanitaryware. The organized sectors produce fully vitrified sanitarywares.I. These Companies have also upgraded their quality and have introduced high value range in the market.

Indian technology to manufacture the basic sanitaryware products. The Government has announced Income Tax rebate on housing loan to boost the housing sector. Because of our low cost of production. The concept of making toilet is fast growing even in village areas. The need of Housing in India with 100 crores population looks to be very potential. 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. The housing has become a basic necessity. 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. They are producing the basic sanitaryware in various brands. Government figure shows that Housing Sector is growing by approximately 25% every year. 9 . where toilet till last two years did not exist. All financial institutions are lending money for construction of house at a very low rate of interest. as people in India are looking forward for improved sanitary condition. Since the availability of raw material is in abundance and also very cheap in the state of Gujarat & Rajasthan. Opportunities: Government of India Policy on Housing Sector is very encouraging. 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. 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. various companies have established their factory in these areas.

10 .Indian sanitaryware are very competitive in the neighboring countries and hence export from India is also growing everyday.

Therefore a replacement market will emerge. Moreover the increasing urbanization of India and the consequent requirement for residential and commercial buildings will be a major driver for growth of sanitaryware. Indira Awaas Yojana. are also playing a large role in this initiative.Outlook for Sanitaryware Industry in India: In the next decade. though currently original equipment sanitaryware market accounts for nearly 90% of the market. Along with this the focus of the central and state governments to provide housing facilities to the poor. The National Housing Policy formulation that envisages "Housing for all" by the end of Ninth Plan period is a big step towards this. Malaysia: 94% and Thailand: 96%. The sanitation penetration has more than trebled from 8% in 1982 to 18% in 1994 and to 29% in 1999. a significant number of the 115 million housing units across the country will need reconstruction for improvement. The comparative penetration levels in neighboring countries are as follows: Pakistan: 50%. Sri Lanka: 65%. Samgra Awaas Yojana is programs for providing housing to the rural poor is a key step taken by the government in this area. State Housing Development Boards and Rajiv Gandhi Rural Housing Corporation Ltd. The government impetus to improve hygiene and sanitation is likely to increase the demand for sanitaryware in India. 11 . Further. The housing development organizations like HUDCO. It is estimated that there is currently a demand for 20 million housing units in India. India is expected to be one of the world's fastest growing countries for sanitaryware consumption. is also expected to generate demand.

WCs designed to flush in just 4 liters of water is another notable innovation by Cera. which has ensured Cera’s superiority over others in quality. It also launched innovative designs and water-saving products. it reduces the water needs of households considerably. in the year 2001. the plant has undergone several periodical up gradations and modernizations to expand to 15. The new company was named Cera Sanitaryware Limited It is now the third largest company in the organized sector with over 20% market share. Based in Kadi. management thought it worthwhile to have independent identity by demerging and transferring the entire business to a new company. Gujarat. It is based in Kadi. Cera Sanitaryware Ltd. . CSL was founded in the year 1980 as a division of Madhusudan Industries Limited.600 MTPA. The twin-flush model launched in India by Cera for the first time. It is also the largest and only listed company in pure Sanitaryware space. Cera has been on the forefront of launching a versatile color range and introducing the bath suite concept. Realizing the future growth prospects of this division. Established with an initial capacity of 3. Gujarat. The first sanitary ware company to use natural gas. 12 . uses German technology.000 MTPA. CSL is the first sanitary ware company to use natural gas and the first Indian sanitary ware company to haveISO 9002and ISO 14001 certifications for its products.Company Profile Introduction to CERA Sanitaryware Limited: Cera Sanitaryware Limited (CSL) is one of the pioneers in the Sanitaryware segment in India.

The company is poised to become a total bathroom solutions provider. Bath Tubs. Having shown a growth rate of more than 20% since last 3 years. has launched its one of a kind Cera Bath Studios in Ahmadabad. Cera will also launch premium Spanish Tiles in Indian market…. With the opening of the Cera Bath Studios. CP fittings etc. Cera Sanitaryware Ltd. architects and interior designers can have full view of the Cera’s premium ranges of WC’s. Cochin and Hyderabad. Several Bathrooms are displayed live. the discerning consumers. so that the customers can get a feel of Cera’s vast range of products.To achieve growth in the rapidly changing retail market in the country. Shower Cubicles. Shower Panels. Kolkata. Wash Basins. Soon. Bangalore. 13 . Shower Temples. Chandigarh. today is the fastest growing sanitary ware company in India. Whirlpools. Cera. Cera Bath Studios will complement its existing network of 400 distributors and 4000 retailers.

When he signed the MoU to commence the sanitary ware manufacturing unit in Kadi in North Gujarat using natural gas. most companies.History of Cera Sanitary ware Limited Vikram Somany. this did give Vikram Somany some kind of background. Cera focused on creative designs and paid equal attention to aftersales service with the differentiating factor. Somany possessed entrepreneurial spirit even while he was managing Madhusudan Industries Limited in Gujarat. Somany had entrepreneurship in his blood and had also inherited the understanding of this industry. Of course. The opportunity was open for others as well but Cera made the most of it. But Cera's success does not rest on these two factors. His father had rich experience in sanitary ware. Somany met a government delegation in 1978. Somany did not neglect the other relevant business aspects as well. one might argue that Mr. So what was it that Cera did different? The quality of Cera matched international norms. And it was just the beginning. Cera went on to create history with its advertising campaign in the early 1980s: Your 14 . Mr. It rests on his ability in transforming the opportunity into a business success. Though those were the days of sellers’ market for sanitary ware. the first of its kind in India. Moreover. This company was into production of vegetable oils and vanaspati. in collaboration with Twyfords of UK. Hindustan Sanitaryware. did not succeed later. The turning point came into the company when Mr. there was a market opportunity. Mr. Also. Yes. Chairman & Managing Director of Cera Sanitaryware Limited. It was a kind of milestone. He along with his brothers had pioneered sanitary ware in India in the early sixties by setting up a manufacturing unit. which went into production around the same time as Cera.

Cera also recognizes its responsibility towards environment. change and competition. Well. In fact. looking at Cera's track record. 15 . Apart from Cera. Mr. Success tips from Mr. Somany of Cera Identify market opportunities Create a dedicated team and give it full operational freedom Concentrate on brand. Like the other two major players in the organized sector. Cera keeps upgrading and increasing its product portfolio regularly. 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.Bathroom is a Room Too…" An entrepreneur is successful because he understands and respects the three Cs: customer.. Both have larger production capacities than Cera currently Cera. is now expanding its capacities To maintain that edge in the market.building right from the beginning Recognize social and environmental responsibilities Follow international norms of quality Keep innovating the product offerings Provide good after-sales service. it’s gone a step ahead. the other two major players are Parry ware and Hind ware. however.

16 .  Provide high quality to sanitaryware products.  The Company is aiming to achieve 50-60% of market share for every product.MISSION OF THE COMPANY:  To setup and carry out research and development for the manufacture and development of Sanitaryware products. VISION OF THE COMPANY:  To be a total home solutions provider in the long run. providing products for every room in the home.

apart from European. However. Cera could easily make products conforming to ANSI. CERA has to curtail its exports. The first was bathsuites—a unique design concept consisting of WCs. wash 17 . CERA has been constantly using internationally renowned consultants in the ceramic field to upgrade its production processes. South Africa. New Zealand. 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. Product innovation has been Cera’s forte.International presence and exports: CERA has exported. One after the other. CERA is now looking at export market more seriously and talks are on with certain parties for OE supplies. huge quantities. Cera launched not only new designs. Canadian and Indian norms. etc. Greece. as the domestic market was giving better realization. to developed countries like the US. in the past. unmatched by any other Indian sanitaryware company. Currently. but even new innovations in India. Cera has always kept its technology ahead of rest of the players in India. World Technology: To keep ahead of competition. CERA has presence in several markets like Gulf. With the production going up in the coming months. Australian. yield and finished goods quality. It also helped Cera bag large export orders from the US.

Cognac. bidets and accessories. When there is shortage of water. Celebrity. designers and quality assurance and marketing personnel and thus the concept of twin action flushing was born.basins. ever since cera pioneered the twin action coupled closets two years back. Cera is also credited with launch India’s first monoblock EWC.—were launched in quick succession. Clair. A household can save substantial quantity of water by installing twin flush. plumbing consultants. all manufacturers commenced twin action. One after the other. a WC is used more as a urinal and still it was using 8 to 12 liters of water for each flush. we advise twin flush because the cost of electricity for pumping extra water to overhead tank can be saved. it has caught the fancy of all architects. Comet. Cera have also launched twin flush model of Plastic Cisterns 18 . CERA found that in most households. Innovation: Water scarcity has always been a concern in most parts of India. A series of bathsuites—Crowne. by sending less water per flush down the drain? This concern was brainstormed by our technical and research personnel. Cornet. giving the bathroom a distinct personality. In India. Cologne and now has an array of one piece ewcs & wash basins to its kitty. For the economy range. Cera then came up with the idea of half flush along with full flush. Conca. Capri. etc. Even where water is available in abundance. customers and even competitors. can we not think of conserving it. trade. Celeste.

65 crore. strong position with established brand name in the retail segment of the Indian sanitaryware market. Total facilities rated by CARE aggregate to Rs. Facilities with ‘PR One’ rating would have strong capacity for timely payment of shortterm debt obligations and carry lowest credit risk. sanctioned fund based working capital limit of Rs. its long track record of operations. This rating is applicable to facilities having tenure up to one year.18 crore and sanctioned non-fund based limit of Rs. The ratings continue to factor in CSL’s experienced promoters. Such facilities carry low credit risk. Facilities with ‘Single A’ rating are considered to offer adequate safety for timely servicing of debt obligations. Further. Long-term bank loans/facilities CARE AShortterm bank loans/facilities PR1 Ratings CARE has retained the ‘CARE A-’ [Single A Minus] rating assigned to the long-term bank loans/facilities of Cera Sanitaryware Ltd. (CSL). CARE retained the ‘PR1’ [PR One] rating assigned to the shortterm bank loans/facilities of CSL. CARE assigns '+' or '-' signs to be shown after the assigned rating (wherever necessary) to indicate the relative position within the band covered by the rating symbol. facilities with relatively better credit characteristics are assigned PR1+ rating.50.40 crore including outstanding/sanctioned term loans of Rs. Within this category. This rating is applicable for facilities having tenure of more than one year. good manufacturing capabilities.75 crore. healthy profitability. 19 .Credit analysis CERA SANITARYWARE LTD.12.19.

comfortable gearing level and liquidity position. under the scheme of arrangement in 2001. Positioned as the third largest player in the Indian sanitaryware market. Revival in demand for sanitaryware due to change in outlook for the real estate sector in India and maintenance/improvement in the overall financial profile are the key rating sensitivities. CSL is one of CREDIT ANALYSIS & RESEARCH LIMITED 2 the leading players in the organized sector in the Indian sanitaryware industry which also consists of a large unorganized sector. The ratings are. being cyclical in nature. The company is promoted by Shri Vikram Somany of the Madhusudan group. Its manufacturing facilities are located in village Kadi in Mehsana district of Gujarat. CSL has also setup up its display centres at various locations across India for its retail customers. constrained by working capital intensive nature of operations and CSL’s linkage with the real estate sector which. 20 . the company acquired 20 years old ceramic business of Madhusudan Industries Ltd. followed by the change in name to Cera Sanitaryware Ltd.. however. CSL has pan-India marketing network for retail market in addition to direct institutional sales to reputed construction companies. directly affects the demand for CSL’s products. Operations CSL is into manufacturing of ceramic sanitaryware (60% of gross sales in FY09) and trading of bath fittings (38%) in various design and sizes. as Madhusudan Oils & Fats Ltd. Company Background Incorporated in 1998.

5 crore which will be financed entirely by way of internal accruals. The company uses natural gas as its primary fuel. The project is expected to start from October 2009 and the commercial production is expected to start at the end of FY10. Ongoing Projects CSL has planned to setup a plant for manufacturing of bath fittings.62% during FY08 21 . CSL’s operations are working capital intensive in nature as it requires maintaining significant finished good inventories in order to respond to demand from the retail segment for various designs and sizes of its products.98 MW windmills to meet its power requirements. Financial Performance CSL’s total income has grown at CAGR of 27% over the past four years due to increase in demand from the real estate market coupled with increase in sales realizations of bathware. The total cost of the project is estimated at Rs. accounting for about 55% of the total cost for FY09. CSL has installed 2. which are sold along with sanitaryware products under its own brand CERA. which is sourced from GAIL.4 MW gasbased captive power plant and 4. is outsourced by CSL. which the company presently outsources from various units/parties in India and also imports some of its requirements. Manufacturing of bath fittings.68% during FY09 compared to 16. Raw material and power cost are the two major costs in manufacturing of sanitaryware.CSL has an installed capacity of 2 million pieces of sanitaryware per annum. CSL’s total operating income grew by 25% during FY09 compared to FY08 while PBILDT margin improved to 18.

2009 (Q1FY10).15 times. Neycer. increased marginally during FY09 compared to FY08 due to extraordinary loss suffered during the year in a foreign currency swap transaction. 2009 due to accretion of profits to networth and repayment of term loans. Hindware.22 times and 0. Overall operating cycle marginally improved during FY09 to 134 days compared to 139 days during FY08. interest coverage ratio improved to 6.31.2.51 times as at Mar. Liquidity position of the company was comfortable as indicated by current ratio of 1.35 crore on a total income of Rs. With the improvement in profitability. 2009 which improved from 1.21.29 times and 0.30. The domestic sanitary ware market is largely unorganised. Johnson Pedder and Liberty in branded 22 .33.due to improvement in sales realization. long-term debt equity ratio and overall gearing improved and stood at 0.54 crore registered on total income of Rs. PAT margin. with just 5-6 key players like Parryware – Roca. Both. 2008 due to CREDIT ANALYSIS & RESEARCH LIMITED 3 increase in cash & cash balances and sundry debtors.31. CSL reported a PAT (profit after tax) of Rs.3. Cera.31.03 times during FY09 over FY08 level of 5.64 crore as on Mar.90 crore during the corresponding quarter last year. Industry Scenario The sanitaryware industry is characterized by its cyclical nature and working capital intensive operations with close linkages to the real estate market. 2009. Raasi.55 times as at Mar.40.31.24 crore as against the PAT of Rs.26 times as at Mar. Latest quarterly performance: For the first quarter of FY10 ended Jun. 2009 compared to 0. CSL had a cash and bank balance of Rs. however.41 times as at Mar. Classica.31.

segment. CREDIT ANALYSIS & RESEARCH LIMITED 4 Financial Results (Rs. hospitals. Control over working capital cycle and continuous introduction of new designs and products would be critical for the growth prospects of the company. (12m.89 21.67 128.05 159.85 PBILDT 18. Shifting customer preferences towards branded products is leading to declining share of unorganized sector despite their selling of products at lower prices.85 23 . Increase in demand from replacement market is likely to increase from around 10% as compared to 80% in developed countries due to increasing preference for branded products and availability of new and better designs. A) (12m.28 29. crore) For the period ended / as at 2007 2008 2009 Mar. A) (12m. Growth drivers for the industry include growth in the real estate sector in India including residential and commercial property.05 159. Initiatives taken by the government to boost the sales of residential properties through interest rate benefits is likely to impact the demand for sanitarywares. multiplexes.67 128. which is currently facing a slowdown. shopping malls. hotels.31. business/IT parks etc. Prospects CSL’s prospects would be driven by its ability to maintain sales volume growth and profitability in light of weak scenario for the real estate sector.52 Total operating income 106. A) Working Results Net Sales 106. This is further augmented by increasing spending power of the Indian consumer. airports.

11 Networth 47.26 1.29 0.53 Total capital employed 86.65 20.17 3.50 16.43 Key Ratios Growth Growth in total income (%) 33.59 3.54 19.17 9.Depreciation 3.90 PAT (after deferred tax) 9.54 4.94 5.43 Financial Position Equity capital 3.94 Average cost of borrowing (%) 9.13 1.71 16.97 PBT 13.58 58.52 0.51 Quick ratio (x) 0.15 6.83 Growth in PAT [after deferred tax] (%) 53.98 15.24 10.03 Term debt / GCA (years) 1.74 5.07 118.45 Profitability (%) PBILDT / Total operating income (%) 17.07 10.22 Overall gearing ratio (x) 0.05 13.21 1.09 3.11 Liquidity Current ratio (x) 1.85 8.82 Solvency Long-term debt equity ratio (x) 0.93 Interest 2.55 0.62 18.11 Gross cash accruals 14.70 10.20 ROCE (%) 21.86 0.05 24.79 1.28 3.22 110.71 70.29 0.68 PAT / Total income (%) 8.42 20.41 Interest coverage (x) 6.06 24 .28 1.84 30.58 18.50 7.16 20.

Today Vikram Somany.00 Avg. That was all he needed to make a beginning.40 Working capital turnover ratio (x) 5.Turnover Capital turnover ratio (x) 1. chairman and managing director of CSL. the rest was history.000 pieces of sanitaryware per day is now the third-largest sanitaryware company in India. creditors period (days) 8 8 7 Total operating cycle (days) 130 139 134 Cera Sanitaryware Ltd: 30 years and counting What started as a small plant with a capacity to manufacture about 1. Hindustan Sanitaryware Industries Limited (HSIL).000-crore organised market. He was promised land at Kadi and natural gas from an isolated field. 25 . has 500 distributors and retails through 5.30 1. inventory period (days) 82 84 80 Avg.03 4.49 1. A split in the family business. collection period (days) 56 63 60 Avg. Cera Sanitaryware Limited (CSL) now commands a 20% share in the Rs 1. And as they say. He chose sanitaryware as it was one business he felt comfortable with.24 4. led Vikram Somany to start out on his own. A young Vikram Somany started doing the rounds of the state government offices in Ahmedabad.000 outlets in India.

" Somany added. capacity doubled. As a result. It has launched the Italian wellness brand. The products are retailed through the company’s exclusive 26 . The other thing that set Cera apart was contemporary style and the range of 30 colours it offered. these products were lapped up by a younger and more youthful set of buyers." he said.000 pieces per day or 3 lakh pieces per year. said: "We wanted to make a name in quality. Cera was focused on just one aspect – quality. It has earmarked a Rs 15-20 crore budget for an ad campaign across print. coloured sanitaryware was much in demand. In fact. Vikram Somany. In a market dominated mainly by British designs. "So we had a head start. Of late. Novellini. I knew everything else would follow. Cera’s designs too were a break from the past and refreshingly different. the heart of Kolkata’s central business district. Cera has given a new thrust to its marketing and product range. Those days. It was a conscious choice. The market is also graduated towards mainly two colours –ivory and white." It took his competitors nearly 12-13 years to switch over to natural gas as a fuel." Somany pointed out. The emerging tastes and preferences of our customers is towards the more expensive items with contemporary styling and designs. And it has yielded rich dividends for the company. In step. TV and outdoor. Cera has launched the ‘Whitest White’ range of products. Seated inside his office in Dalhousie Square. to gain a foothold in the bathroomware segment. Cera is now ready to launch the next phase of its growth. The products offer double-glazed surfaces which is easier to maintain. Those days most furnaces used coal or other fuel that left specks on the ceramic. it will soon have a capacity of 28 lakh pieces per year. There was no looking back. Somany decided to use natural gas and that made a huge difference in quality.What set the plant apart from the rest in 1979 was the use of natural gas in its kiln. While Cera had started off with a capacity of 1. The company is betting big on the mid-to-premium segment of the market. Within a year-and-half. "We offered sanitaryware in dark colours. including shower enclosures and hydro massage bath cubicles. right from day one. post-expansion.

"We are negotiating with a few of the Italian players and we hope to close a deal within the next six months. it notched up Rs 190 crore in revenues. Cera Bath Studios and also through premium retail showrooms. While it will spend Rs 50 crore on new faucet unit. Cera is in talks to acquire a leading Italian sanitaryware brand. the company is investing some Rs 100 crore in expanding capacity at its Kadi facility. In revenue terms too.outlets. In next 2-3 years." Mr Somany who is back from a recent trip to Italy. it has started giving results. 27 . Apart from marketing strategy. Cera has a stronghold in western India states and in Kerala. while this year it plans to earn around Rs 300 crore. Cera has set a sales target of Rs 500 crore. Goa and Punjab. To further consolidate its position in the premium segment. another Rs 50 crore will be spent on expanding its sanitaryware line. Today. said. Last year.

has already taken up substantial expansion in last four year involving an investment of Rs 53 crore. Apart from this." However. "Cera is pursuing overseas acquisition to expand its footprint and capture a larger global BSE customer base. "The company wants to tap high end sanitaryware market. the company intends to infuse Rs 60 crore for capacity expansion. 28 . The company." added Vikram Somany. the company officials declined to divulge further details regarding acquisition saying that the board of the company has recently decided to make acquisition and the company is currently exploring various opportunities.Cera Sanitaryware eyes acquisition in Europe With a view to tap high end sanitaryware market. It is now in the process of setting up a green field plant to make faucets. chairman. plans to acquire a company or a brand in Europe. There is major growth on cards with Cera becoming a complete bathroom solutions company. Cera. with a production capacity of 2500 pieces per day at Kadi. which enjoys 20 per cent share of Rs 1000 crore organised sanitaryware market in India. popularly known as CP fittings. Cera Sanitaryware Ltd. India's third largest sanitaryware manufacturing company. The N company is in dialogue with leading | S Price E European faucets and sanitaryware brand with intension of acquiring two super premium brands.

Even foreign brands like H&R Johnson.52 crore in 2008-09. Further. "We have further decided to double the production of new facility for faucets. The companies are applying accurate standards and using top machinery and stringent quality measures with latest designs to manufacture finest quality machines India." Vidush Somany informed. is all set to become the biggest manufacturing hub for international sanitary wares brand. The net sales of the company have risen by 20 per cent to Rs 191. Cera today announced a bonus issue of shares in the ratio of one share for every share held. Roca and Kohler have established their operations in India. India will have a huge market for sanitary ware products and of course the export market will also grow simultaneously.where it already has its existing facility for sanitarywares. the company declared dividend of 50 per cent on the back of encouraging financial results. Indian Sanitary Ware Industry bullish: Indian Sanitary Ware Industry bullish India. today. Going forward.36 crore for the fiscal 2009-10 as compared to Rs 159. In addition to this. is all set to become the biggest manufacturing hub for international sanitary wares brand. We have earmarked capital outlay of Rs 60 crore for the capacity expansion. The new unit for faucets is scheduled to start operations from September this year. Also. the existing unit for sanitaryware will also see capacity addition of 35 per cent to 2. Even foreign brands like H&R Johnson. government’s support to improve sanitation and hygiene and increasing urbanization has given a big push to the Indian sanitary ware industry. today. Roca and Kohler have established 29 .7 million pieces from current 2 million pieces. India’s current sanitary ware market size is almost 500 crores and in fact is growing at an annual growth rate of 3-4 percent in the industry.

Bahadurgarh. Guwahati. Nepal. Malawi. Delhi. Indore. while the condition of rural market is terrible. Mumbai. Certainly. Indian companies are taking a step further to enlighten people about the advantages of premium sanitary wares. Ahmedabad. With 15 to 17 percent growth per year. On other hand. In the last five. Jamnagar. The remarkable growth by the industry has inspired industry majors to enhance their manufacturing system and even apply latest technology to give customers value for their money. Faridabad. Today. Hyderabad. Bangalore. Bikaner. Surendranagar. According to current government’s estimation. Chennai. Jalandhar. housing’s demands are on rise. This in fact has given Indian sanitary ware products an edge over the competitors from the nearby countries and naturally the exports of sanitary wares from India is scaling up. New Delhi. Industry’s growth is directly related to the development in real estate. Morbi. almost 50 percent of the urban population lacks proper sanitation facilities. Nagpur. Thane. Actually the increased demand for sanitary ware is not just emanating from the new projects but there is a huge market for replacement products also. courtesy availability of ample raw materials and low cost labor in comparison to other countries. Jodhpur. Kolkata. Of which 27 percent of the population hails from urban areas. when it comes to the rural population only 14 percent has access. Bharuch. India’s population is growing at a growing at a significant rate. United States Prominent Destinations to Source Sanitary Wares from India Majority of the sanitary companies have set up their plants in Rajasthan and Gujarat given the availability of large quantity of raw material and low-priced labor there. the Indian sanitary ware market has witnessed exponential growth. Ghaziabad. Coimbatore. Rajkot. Nigeria. Pune . As per 1994 study. six years. Chandigarh. However. Gurgaon. Vadodara. Thangadh . Patna. Secunderabad. Hong Kong. Demand for Made-in-india Sanitary Wares in the International Markets China (Mainland). almost 70 percent of the urban population has access to sufficient sanitation. For the starters. Navi 30 . Gandhidham. Thailand. Jaipur. Ludhiana. there is large difference in distribution of amenities between the urban and rural population of the country. thanks to the rise in purchasing power parity. Surat. Indian sanitary wares are comparatively cheaper as opposed to our western counterparts. Indian manufacturers have strengthened their dealer network all across the country.their operations in India. with major companies increasing their production capacities. And interestingly people have started taking interest in top sanitary wares. Moreover.

the time is right to tap the sanitaryware market in India. Also. regarding the local market. Dhuva. who are also the source of information. H & R Johnson and Roca have entered the Indian market in the past decade.Mumbai. Keywords B2b portal. better services. Many international brands like Kohler. the fastest growing country which has a young population of more than 50 per cent. sanitary The Indian sanitaryware market is the second largest market in South Asia and is growing at the rate of 22 per cent per annum. considering the construction of residential societies.com. The sanitaryware retailing has come a long way and now involves technology centres and trained fitters. better quality and better facilities. but a lucrative market for premium brands. “India is no longer a testing ground. which is the reason enough for the sanitaryware market to grow in India. Let’s explore the basics. The newer generation wants better homes. Noida. Made-fromindia. The latest addition to the list is a German brand Grohe. suppliers and exporters dealing in sanitary products. which seeing the huge potential of the Indian market could not resist but enter. to the retailers. All big international brands regardless of their category are entering India. Kochi.market. a leading B2B portal from India has listed on its portal top manufacturers. Ernakulam. and hotels etc to cater to the common wealth games. The sanitaryware market has grown almost double to 2000 crore in 2009. says a report by Netscribes (India) Pvt Ltd consulting solution. Bhopal. It’s increasingly willing to spend on premium quality and are 31 . Why tap India for sanitaryware? India had a GDP of 6-7 per cent per annum even when other countries were dying of recession.

Product Innovation: The Indian consumer which is the direct consumer is not very easy to tackle. project heads etc. well placed. contractors and specifiers like architects. People are also aware of leading global brands in the space with high growth potential. corporate offices or restaurants. there are various channels through which it can enter India. the range goes from bath tubs. purchase managers. B2B primarily comprises developers. Grohe India. be it your home.becoming extremely value conscious. sourcing managers. B2C is focused on the end consumer” adds Job. bath tiles. It’s well educated. small shops. tracking it isn’t an easy job so how do you cater to their needs? “Known for its products and technology. Most of the Grohe products that are available globally are already on offering in the Indian market. In fact. says Mathew Job. so the consumer is everyone. engineers. “Broadly speaking our target consumers are divided into B2B (business to business) and B2C (business to consumer). Grohe has carved out a niche for itself in the premium segment with a strong backing of superior product quality and customer service. Job states that a retailer can come in with help of 32 . Everyone requires them. CEO. Target Audience Everyone needs a toilet! But sanitaryware isn’t only about toilets. basins to shower accessories. well travelled and ambitious. The new Grohe Baulines IS available in the market from April 2010” Retail Channels For a foreign sanitaryware brand. interior designers. India is being looked upon by the entire world as an emerging market and potential global hub for many products”. we are now launching a product line that will specifically cater to the Asian market. salons.

Sanitary fittings industry in India witnesses a new entrant frequently and is growing at a significant rate every year. we get feedback from them about what is it that the consumers like and don’t like. we don’t just train them. We work with them. hotels and malls it will create a boom in the near future. Globally. consumers are now willing to spend a lot more on making their 33 . But. we are concerned that plumbers in India are not organised to a great extent to allow us to benefit from this resource. You can take help from wholesales. what other threats does the sanitary ware market see? “The lack of sufficiently trained plumbers was a huge concern for us when we came to the Indian market. Plumbers are our greatest marketing research tool. Hurdles in India: Other than the obvious hurdles of FDI and other licensing issues.various channels. Having a JV with an Indian company surely helps as the Indian company is already known in India and also helps you to have a better image in front of the customers. You can have a joint venture (JV) with an Indian company who can sell your products in India. In addition. This is something we hope to change gradually in the coming years” contemplates Job. plumbers (installers) are a major focus group for us. with the construction spree going on to cater to the common wealth games like residential societies. small retailer and also with your own outlets across the horizon. Also.

There are many companies mistakenly think that there is a good product. Identify the precise positioning marketing The brands are an effective tool to compete. a large bathroom industry price war. Some bathroom companies make full use of promotions to attract consumers to purchase desire. many domestic sanitary ware brand performance and quality to meet or exceed the foreign brands. China is not strong corporate brand awareness is an important reason leading to this situation. but the brand must not only equal to sales. even ruthlessly eliminated by the market. high quality" is their current business philosophy. from the second quarter of this year.bathrooms look and feel good. the brand is independent of the spirit of the factory class of property. there will be a great brand big factories. said Gao Yan: China has become the world's largest bathroom products consumer market. These factors when taken together will ensure a robust growth for the industry in the future. In fact. Thus. Enhance the concept of competitive high-end brand market Secretary-General of the Chinese Kitchen Works Committee. This price is clearly lower than production costs. it belongs to you. almost monopolized the high-end sanitary ware market in China. "low prices. more and more consumers to buy bathroom product is not only concerned about price. the majority of resources into concrete things up. the trend was intensified. and even a rare low-cost 199 yuan toilet. If the business or remain in the seller's business philosophy in the past. service. but unwilling to invest in brand marketing to do. but also the tools to achieve 34 . quality. brand awareness is more concerned about the reputation and business. TOTO. American Standard and other foreign funds sanitary ware brand strength using strong and high brand awareness. sanitary industry into the era of brand marketing. certainly in the market competition at a disadvantage. you can also belong to other people. Except for historical reasons. Continuously improve the development of sanitary ware. There currently the largest sanitary industry errors are: the business equivalent to the brand. Many companies have said in an interview. however.

and no all-encompassing brand." the second will be a "professional brand "Third. Flooding and flooding in the information age products. a few will appear in the "comprehensive sanitary ware brand.business value and the carrier. there are" personalized bathroom brand. Brand positioning is the most important issue the operation. and with reference to current market structure point of view. accurate positioning of the brand can only be consumer awareness and choice. not a luxury but necessary choice. but also the future development of corporate strategic issues. " 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: 35 . Facts have proved that the enterprise has never been outside their range. Through the study of international brands. the future development of sanitary industry in China will be a number of trends: First.

 The data provided by the company may not be 100% correct as the Company has.  To reach every client.  Time is critical factor limiting this study. 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.  Unable to find fair responses from various clients. detailed interaction with the executives was not possible. Data collection: Primary Data: Through Questionnaire Limitation of the study:  Many constraints were involved in doing this study.  Finding and suggestion have been given from personal point of view. Because there were different response from different customers… 36 . The study focuses on to make a solution for the customer dissatisfaction towards technical assistance those facing by Cera Sanitaryware Ltd. Some of them are as follows.  Due to work pressure.This study gives detailed view about customer satisfaction towards after sales assistance by Cera Sanitaryware Ltd.

Cera is upgrading it to reach  2. and have less knowledge about the installation of product.Findings:  Cera’s have more innovative idea to offer product with new innovation  Cera is currently stood on third rank in its production capacity. Cera Sanitary  ware Ltd. 37 .  Sanitary ware manufacturing is highly labor intensive. According to company report those customer have bought only simple or medium level products.64 crore.2 million pieces by this year end  Cera Sanitaryware Limited (CSL).  Cera has a production capacity of 1. 2007 up by 33.  About 50 % customers have a view that Cera’s product and services are similar like other product in market. today is the fastest growing sanitary ware company in India.3 million pieces. Those are not satisfied have not much knowledge about the product use.4% from Rs 80.107. nonavailability of standardized raw-materials (every manufacturer has to source raw materials from mines and have its own quality assurance systems of taxes). announced all time high revenue of Rs.  Having shown a growth rate of more than 20% since last 3 years.58  crore for the year ended March 31.  Many customers are satisfied with the use of cera’s product.

38 . Other customers have got it from website or helpline no.  Company has needed to expand its services and handling customer’s queries in a sound manner. According to them. . and emergency repair of product in User Manual.  There should be all information regarding product use. Company is unable to give full satisfaction to its customer. It’s not about. channel. how to use. Because user manual is available with every products. More then 50 % of customers has got technical information from the user manual.  Need to make some improvement in products to satisfy its customer. Suggestions:  Need to give full knowledge about product use to customers through advertisement in magazines. So customer can use alternate way for information. how to fit it.  About 84% customers are not satisfied with the technical assistance provided by company. because they were unable to find information in User Manual. product features. at any problem what should do etc. installation.  Mostly customers are not satisfied with the information available in User Manual. newspaper or TV.  Company should add sufficient technical information in other mediums of information like website.  According to all data analysis customer have dissatisfaction towards technical assistance.

 Company should provide technical expert employee for every specific area. It has more innovative idea to offer product with new innovation. closets which are the height of an average chair and therefore more comfortable.  Introduction of designs to suit handicapped people. 100% production capacity should be utilized to increase the volume of production.        lavatories with interesting shapes and designs. providing products for every room in the home. The technology of water saving should be in every product. Those can personally solve the problem of customer. which will reduce the number of workers and then reduce the cost of the production. 39 . The product should be diversified in its maximum categories. Cera is the first company that launches such equipment those are helpful in reduces the water needs of households considerably. So customer will definitely attractive towards products. Conclusion: Cera Sanitaryware Limited (CSL) is one of the pioneers in the Sanitaryware segment in India. It is advisable to conduct market surveys before the introduction of new products. The company should launch low unit packs in all categories to drive market penetration and to push volume. It was the first sanitary ware company to have ISO 9002 and ISO 14001 certifications for its products.  If company is not providing service to its customer timely. More interest should be taken to increase the employee participation in the management of the company. Then there should be provision of compensation to its customer. Mechanization should be done at each stage of the production process. Cera plans to be a total home solutions provider in the long run.

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