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ORIENT

TILES A PROJECT REPORT ON MARKET ANALYSIS ON CERAMIC TILES INDUSTRIS PREPARED FOR AND PRESENTED TO ORIENT TILES INDUSTRIES. UNDER THE GUIDANCE OF MR. m KUMAR A PAPER SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION FROM

METAS ADVENTIST COLLEGE, RANCHI SUBMITTED BY NAv
CONTENTS
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ORIENT
TILES
COVER PAGE CONTENT CANDIDATE DECLARTION ACKNOWLEDGEMENT PREFACE NATURE OF ASSIGNMENT: AN OVERVIEW HISTORY OF TILES INDUSTRY OVERALL PICTURE OF THE INDUSTRY BRIEF HISTORY OF COMPANY GROWTH IN INDIA QUESTIONIRE AND THEIR EXPLANATIONS LEARNING THROUGH THE PROJECT PROSPECTS AND SUGGESTION RECOMMENDATION BIBLIOGRAPHY 1 2 3 4 5 6 7 9 11 12 13 34 36 37 38

Candidate Declaration/Certificate of Supervisor

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ORIENT
TILES
I hereby declare that the work which is being presented in this report entitled “Market analysis on Ceramic Tiles Industry in Ranchi” is an authentic record of my own work carried out under the supervision of Mr. manoranjan Kumar, territory manager , Orient Ceramic Industries Ltd. The matter embodied in this report has not been submitted by me for the award of any other degree.

Dated:

Name of student Navneet nayan

This is to certify that the above statements made by the candidate are correct to the best of my knowledge.

Signature: Supervisor Name: manoranjan Kumar Designation: Territory manager Company-Orient Ceramics Industry LTD.

Acknowledgement

I express my profound gratitude to Mr. manoranjan Kumar, territory manager , Orient Ceramics Industries Pvt. Ltd who assigned me as a Summer Trainee in Orient Ceramics
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Manoranjan Kumar. Ltd. This is fairly evident from its usage ranging from bathrooms and kitchens in average Indian households to medicals centers. ceramics tiles are primarily hygiene products and that is how our broad spectrum of consumers views the products. Orient Ceramic Industries Ltd. milks booths.ORIENT TILES Industries Pvt. lab. A ceramics tile is basically a “utility products “ and that 4 remains our promotional slogan.. gave me the permission of Summer Training in Orient Ceramics Industries Ltd. sales officers. publics conveniences and countless other centers dotting our surroundings. Also I would like to give regards to my Parents. seniors.. I am also grateful to Mr. Navneetnayan BBA 3rd year Metas College Adventist PREFACE Apart from their decorative looks. I want to give my sincere thanks to his kind advice and guidance that had made my project successful. Many of the sound advices have been well taken by me and it is largely due to his patience that I was able to achieve my goals successfully. schools. friends who have in some way helped me in completing this project. Popular housing projects are increasingly switching over ..

Nevertheless. 5 .I was given the responsibility to make survey of orient tiles provided by orient tiles in Jharkhand. ease in laying ability. My job was to not only discuss the advantages of orient tiles but also convince builder to start using the orient tiles to their project. NATURE OF ASSIGNMENT: an overview The assignment included a position of orient in Jharkhand as a part of the orient team . low price and most important hygiene. owing to several factors viz. I assigned the RANCHI ZONE. Heavy churning out of bolder and colorful designs by the industry is testament that most households regard a ceramic tiles as an “adornment “for an otherwise “drab look” of their age _old floorings or an unfurnished wall. this decorative aspect of ceramic tiles has forever been in the forefront.ORIENT TILES to ceramic tiles from the traditional mosaic and even granite or marble.

clay bricks were dried beneath the sun or backed.many source independently verify that the actual known history of tiles (and the known usage of wall and floor tile coverings ) can be traced back as far as the fourth millennium BC (4000BC) to Egypt .These ceramic bore decorations. which were white and blue striped and later possessed more varied 6 . In those days. in Egypt. and the first glazes were blue in color and were made from cooper. tiles were use to decorate various houses . During that period ceramic were also known to be found in Mesopotamia .ORIENT TILES HISTORY OF TILES INDUSTRY Rumors have it that the first clay tiles were produced seven to eight thousand year ago in the area now knows as the holy land .

By the end of the 12th century use and manufacture of ceramic tiles had spread across Italy and Spain and into the rest of Europe. The skills had eventually decorative wall tile art had survived in turkey and the middle east and delft tiles art survived in Holland. Automated manufacturing techniques are used and the human hand does not enter into the picture until it is time to install the tiles . where walls and floors must resist chemicals and the space shuttle never leaves earth without its protective jacked of high –tech. It was aboard the ships of Spanish conquistadors that decorative clay tiles found their way to the new world.they are used in an almost infinite number of ways and you don’t have to consider yourself wealthy to own them.ORIENT TILES patterns and colors. 7 . Till that time they were mainly to decorate the floors of cathedrals and churches. fine white stoneware with the earliest Chinese glaze was produced during the Shang –yin dynasty (1523-1028 BC) The Romans introduced tiles making in Western Europe as they occupied territories . the tiles were handmade. each tiles was hand formed and hand painted for the most part. heat resistant tiles. ceramics tiles will be found particularly in lobby areas and restrooms. where they were used primarily to decorate the churches of newly built missions. the great center of ceramic art. Later on in china too. where both beauty and durability are considerations. In commercial building. Ceramic tiles are also the choice of industry.the Low Countries of northern Europe somehow acquired the technology from Persia. In the early days. In fact most modern houses throughout use ceramic tiles for their bathroom and kitchen and in every vital area of the premise. while the moors brought African tiles with them when they invaded Iberia (Spain).

The ceramics tiles sector has been clocking a robust growth of 12-15% consistently over the last few years. Today India figures in the top 7 countries in the world manufacturing ceramic tiles.8 million tons production per annum. floor tile. IT & BPO sector have been witnessing an unprecedented boom in recent years. vitrified tile and porcelain tile segments. the potential seems to be great. floor. The market shares are 35%.ORIENT TILES OVERALL PICTURE OF THE INDUSTRY Ceramic tiles as a product segment have grown to a sizeable chunk today at 3. However. vitrified/porcelain tiles. The main product segments are the wall tile. Overall the bullish growth estimates in the Indian economy has significantly influenced growth of the Indian ceramic till industry. particularly as the housing sector. 53% and 12% respectively for wall.the retail boom in the Indian economy has also influenced the demand for higher end products. The key drives for the ceramic tiles in India are the boom in housing sector coupled by government policies fuelling strong growth in housing sector . retails. textures and 8 . The tiles are available in a wide variety of designs.

the manufacturing capacity was doubled from 5.000 TPA. Orient tiles are now sold in over 1200 outlets all over India. Some of the latest trends in manufacturing methods can be seen in India. 50. Daga became chairman & managing director. 50. Brazil and Malaysia BRIEF HISTORY OF THE COMPANY ORIENT CERAMICS AND INDUSTRIES LIMITED (OCIL).000 indirectly. In 1994-95.Pilkington’s Ltd. 40 km from Delhi.The investments in the last five year are approx. They cater to tastes as varied from rustics to contemporary marble designs in super glossy mirror industry.000 tons per annum (TPA) to 10. was incorporated as a public limited company on 18 th may.p. A total of 5.m per person in comparison to over 2 for like countries like china. The company today possesses the most state of the art technology. Distt. OCIL’s most recent expansion has increased its manufacturing capacity to 9 million square meters per annum. 9 . OCIL’s capacity was further increased to 24. In 1996-97. traditional methods of manufacturing (tunnel-tunnel) and the last single fast firing methods are deployed in manufacturing.000 people are employed. another aggressive expansion resulted in more than doubling of the plant capacity to 55. Mahendra k. 1977 for the manufacture of ceramic tiles with an installed capacity of 5000 TPA at sikandrabad. OCIL was disassociated from SPL and MR.15sq. an ISO 14001 company. OCIL became a subsidiary of somany. Rs 2000 corers. In 1981.). and exported to Europe. (SPL). south east Asia.ORIENT TILES surface effects.000 TPA. Currently it is at 0. Bulandshahr (u.000 TPA. The potential is the considering the per capita consumption of ceramic tiles in India. infrastructural facilities despite being fairly capital intensive. It is located at a distance of approx. which enables a finished tile to be packed untouched by hands within 2 hours from ceramic powder. and as a result of phased expansions.000 directly and 500. By the end of 1993. Both. Middle East and the SAARC countries. The industry also enjoys the unique distinction of being highly indigenous with an abundance of raw material technical skills.

Growth of the unorganized sector accounted for 44% of total production. which bears testimony of the attractive returns from this industry.5 Billion) annually from the organized sector itself. Revenue earning industry – excise mops up over Rs. 10 . 150 corers (or INR 1. Investments in the last 5 years have aggregated over Rs. 2000 corers (or NR 20 Billion) and production during 2005-06 stood at approx. 200 million sq mts.ORIENT TILES GROWTH IN INDIA Ceramic tiles are furnishing materials apart from being utility or hygiene productsdespite an overall slowdown of the economy this sector continuous to growth at a healthy 12% per annum. Rank 7 in terms of production in the world. Market share of India has risen from little over 1.7% to 2.7% in terms of ceramic tiles production.

ORIENT TILES With proper planning and better quality control our export (presently insignificant) contribution can significantly increase. QUESTIONIORS AND THEIR EXPLANATION 11 .

ORIENT TILES Q. 12 . Most of them are using orient tiles in their project. It simply means that orient has made good impression in the mind of builders of Jharkhand.1 Have you heard the name of orient tiles? Answer in percentage Yes 100% No 0% Explanation According to survey based on questioners we have concluded that approx100% builders in Jharkhand are aware of orient tiles.

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hording and adds. 14 .2 TILES how you come to know about orient tiles? Answer in percentage Dealers Executive Others 58% 26% 16% Explanation According to survey we have found that the people who are aware of orient tiles 58% of them know orient tiles through dealers.ORIENT Q. It simply means that dealers. executives have done good work in making people aware about products of orient. banners. 26% of them know orient through poster.

ORIENT TILES Q.3 which brand of tiles you prefer mostly? 15 .

2% are using other brand of tiles.ORIENT TILES Answer in percentage Orient Somany Kajaria Johnson Others 38% 20% 24% 16% 2% Explanation Most of the builder in Jharkhand is using orient tiles. 16% are using Johnson. 20% are using somany. 16 . Orient has made good position in market of Jharkhand it is running successfully in comparison of other brand of tiles. According to survey 38% builder are using orient. 24% are using kajaria.

ORIENT TILES Q.4 how you finalize tiles in final stage? Answer in percentage Brand Quality 28% 48% 17 .

quality and economy. 48% of them choose their tiles on quality. 16% of them choose their tiles on economy and rest 8% of them choose their tiles based on all three criteria that are brand. 28% of them choose their tiles on brand name.ORIENT TILES Economy Combination of these 16% 8% Explanation People who are using tiles choose them based on above all these criteria. 18 .

5 how frequently you purchase tiles? Answer in percentage Every month 4% Every quarter Every year 34% 62% 19 .ORIENT TILES Q.

Now builder in Jharkhand are also using tiles for their projects. quarterly or yearly. We have got that 62% builder are using tiles approximately every year. So we can say that consumption of tiles in the market of Jharkhand is much higher that can be monthly. 20 .ORIENT TILES Explanation According to survey we have found that now builder are diverted toward tiles. 34% builders are using tiles every four month and 4% are using tiles every month.

6 Have you use orient tiles for any of your project? Answer in percentage Yes No 56% 44% 21 .ORIENT TILES Q.

ORIENT TILES Explanation According to survey we have got that many of builders have used orient tiles in their project. But they are thinking to use orient for their next project. 22 . The builders who are using orient are still satisfied with orient and want to use it for their other projects also. 44% builders have not used orient for any of their next project. We have got that 56% builders have used orient tiles for their projects.

ORIENT TILES Q.7 Do you think that executive of orient give proper service? Answer in percentage Yes No 90% 10% 23 .

ORIENT TILES Explanation According to survey we have got that executive of Jharkhand are doing good work in market to make people aware about orient tiles. They think executive of orient are giving proper service to them. We have found that about 90% of builders are satisfied with the work of executive of Jharkhand. Only 10% of builders are not satisfied with the work of executives. 24 .

8 Do you know that orient is also making polished vitrified tiles? Answer in percentage Yes No 62% 38% 25 .ORIENT TILES Q.

But after survey them also aware of this fact. Out of all 62% builders are knowing that orient is also making polished vitrified tiles and rest 38% are not aware of this fact. 26 .ORIENT TILES Explanation According to survey we have got that many of builders are aware that orient is also making vitrified tiles.

ORIENT TILES Orient tiles 70% 60% 50% 40% 30% 20% 10% 0% Yes No Series 1 Q.9 Do you know that orient is also making ultra vitrified tiles? Answer in percentage Yes No 44% 56% 27 .

But after survey other 55% also comes to know that orient is also making ultra vitrified tiles.ORIENT TILES Explanation After survey many of builders come to know that orient is also making ultra vitrified tiles. 28 . Orient is producing ultra vitrified tiles in his own factory. Before survey only 44% of builders are aware of this fact.

10 Do you know that orient is approved in every government institution? Answer in percentage Yes No 40% 60% 29 .ORIENT TILES Q.

ORIENT TILES Explanation As we have found from survey only 40% builders know that orient is approved in every government institution. And rests 60% are not aware of this fact. 30 . So company has made them inform though survey program.

Therefore I learnt to make adjustment in my daily routine. During my tenure of the project I had the first hand experience with the business world. 31 .ORIENT TILES LEARNING THROUGH THE PROJECT Working at orient an interesting offer and provided a good learning experience. The organization was very strict about the time of the meeting but it did not matter much to the builders.

Each person has a different manner. They have to have a long term horizon to look for payback on their investments in the tiles business. So new players entering the market and the rate at which the market grows. Even though the prices of tiles and access costs have been decreased the tiles growth in India has been quite a flop. I also came to know the various products on offer by the company about the competition in the market related to tiles industry. Another reason of a stagnating growth of tiles in India can be stated as a poor infrastructure. Orient is well equipped to handle the pressure without much change in its policies. One gets to learn this only by interaction with people. The pricing structure of orient is quite competitive and at par with the industry standards. 32 .ORIENT TILES Orient is famous not only with the builders but also with the customers. This is a big bottleneck for all kinds of tiles related service . Working with orient gave me an opportunity to learn about the position of orient in Jharkhand. Apart from all that is mentioned above I learned to interact and deal with people. The various methods by which the company reaches to its customers were also part of my learning experience.even though the companies are trying out various steps to smoothen out the difficulties any tiles would definitely have to contend with the situation. Nevertheless with the advent of this mushrooming industry overall there will definitely be a price war when other major players like jhonson and kazaria join the race. I got familiar with the some big builders in the city and gained knowledge about their projects. Overall working with orient has provided me with some important insights into the business world of the country. Since the company had set targets for the work assigned to work under pressure and meet the targets set for period was yet another important thing that I learnt.

it will be difficult for most players to make money. This would result in a large member of players fighting tooth and nail for a share in this small pie. Many major companies have come forward to boost the tiles usage in India. 33 . In such a scenario. As the tiles penetration in India is quite low.ORIENT TILES PROSPECTS AND SUGGESTION All builders and contractor see an enormous potential in the India tiles market. no reason to be optimistic in the current scenario for tiles in India. The feeling is that such conditions will not allow much growth in the market. the size of which does not allow all the players to enjoy economics of scales. One of the main concerns is with regard to the low penetration in the country and high charges. the intensity of competition among the tiles is quite high. There is however. All the companies are fighting for a market.

Once a tiles company can hook on to particular viewer. Another of the primary reason for a stagnating tiles growth in India is the low purchasing power.ORIENT TILES The first mover advantages are quite critical in the industry. This is all the more so because the services are not very well differentiated and access is the main services being offered. RECOMMENDATION As I can say company should emphasis on…………… 1 Branding by – A electronic media B print media C wall painting D banners E hording F posters 2 should arrange some meets to make customer aware. it is unlikely that the viewer will change onto other tiles provided the quality of service is satisfactory. with A Builders 34 .

com 35 .google.ORIENT TILES B Contractors BIBLIOGRAPHY Online sites like – www.com Orient corporate sitewww.orient tiles.yahoo.com www.com www.orient tiles.

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