Cera Sanitaryware Ltd.

Initiating Coverage Report

By Swati Singhania
 Company Introduction

Madhusudan Industries formed a ceramic division in 1998. In 2001, Madhusudan Industries announced the
demerger of its ceramic segment which is now known as Cera Sanitaryware. The company majorly deals in the
sanitaryware, faucet ware, and tiles segment and has also taken some major steps for the environment as it
has always used natural gas in its production and has set up its own units to meet about 90% of its electricity
consumption. But before diving into the company’s details first let’s understand the industry in which the
company operates.

Understanding Industry
Building material
Industry

On basis of
On basis of end-user On basis of material geography
types

Residential Global Domestic

10%
Commercial
Industrial
Land
20% 40%
By regions By types of cities

30% North, South, East , Tier-1 (with population

West, Central above 25 lakh), Tier-2
(between 10-25 lakh), Tier-3
Source: https://www.imarcgroup.com/india-real-estate-market (below 10 lakh)

Major Parts in building material industry are cement (Growing at 6% CAGR from FY15) and Paints
(Growing at 8% CAGR from FY15).
 Industry Based
on Types of
Materials

Wardrobe &
PVC Plumbing Electric Cables Steel & Other Bricks and Doors &
Modular
System and Switches Metals Blocks Windows
Kitchen

Cement Panels Paints Faucet ware Sanitaryware Tiles

Key Competitors of Cera Sanitaryware Ltd.:

1. Hindware (sanitaryware & faucet ware)
2. Jaquar (sanitaryware & faucet ware)
3. Kajaria Tiles (Tiles)
4. Simpolo Ceramic (Tiles) Cera Sanitaryware Limited
focuses on three major
segments
 Company Product Understanding

The company always focuses on increasing new products in its portfolio, especially ones that are
technologically advanced. In FY 22, the Company introduced 47, 25 new products in the sanitaryware and
faucet ware segment. In FY23, the company introduced 330 new products in faucet ware and more than 500
designs in the tiles segment. During the pandemic, the company came with some products like sensor urinals,
touchless flushing sensors, sensor faucets, foot-operated faucets, etc. which attracted customers. Lets
understand the company’s product in different segments a bit more.

Sanitaryware products include wash basins, Indian and Western toilets, etc. The company
here focuses on the premiumization of products. Company in FY18 made an eco-friendly
flushing system that used only 4 liters of water to give an effect like 6 liters of water that
led to 30% water saving.

Faucet ware products include taps, showers, bath-related accessories, etc.

The company also has a product category of wellness under which it has varieties like
different types of bath tubs, shower rooms, etc. which is a premium bathroom range.

The tiles segment has different kinds of polished tiles in different ranges. Some major ones
are GVT tiles (which have a glaze on their surface and any kind of design can be printed on
it), wall and paving tiles, etc.

Company’s Brands

Jeet
(Mass
Range)
Lustre
(Mid Range)
Senator
(Premium Range)
Isvea
(Luxurury)
 Revenue Breakup

Segment Wise Revenue

(In INR Crore) 600.00 Quartely Revenue
350
Sanitrayware Faucetware Tiles Wellness 5 500.00 (In INR Crores)
300
5 5 34
250 400.00
8 52 30
200 102
4 43 5 79 300.00
150 3 18 37 71
39 49 200.00
10021 28 44
137 161 100.00
50 99 108 121
79 82
0 0.00

Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
FY17 FY18 FY19 FY20 FY21 FY22 FY23
FY 17 Fy 18 FY 19 FY 20 FY 21 FY 22 FY 23

600.00 Quartely Revenue

(In INR Crores)
500.00

400.00

300.00

200.00

100.00

0.00
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
FY 17 Fy 18 FY 19 FY 20 FY 21 FY 22 FY 23
Value Chain

Brass
Dealer
Manufactured Sanitaryware

China Clay
Faucet ware Retailer

Outsourced
Tiles
Project Sales
jj