TILE TALES

India has an impressive presence when it comes to the production and use of ceramic tiles. Globally, the country ranks third, touching USD 3.7 billion in 2016 and moving ahead at CAGR of 8% to probably reach USD 4.8 billion by 2019. This is in spite of the effects of demonetisation and a general slowdown in the real estate sector, growing at a steady 15% per annum. In addition, although highly unorganised, it employs over a half million people, both directly and indirectly, with Morbi in Gujarat being the hub of manufacturing such tiles. “It is because of the cost factor that Morbi has turned into a major focal point of production,” shares Ronit Khadilkar, Executive Director, Mirage Ceramics.

Trend in Tiles

Driven by increasing demand, tile manufacturers like Kajaria Tiles, Somany Ceramics and Mirage Ceramics, among others, have turned into leading brands. They are also among those companies in the organised sector that have ushered in amazing innovations in terms of the quality, design and shape of tiles not to forget experiments with raw materials and new production techniques to give the consumers a wide choice. This, for instance, includes the use of nanotechnology to strengthen the shelf life and resistance of the tiles against bacteria and dirt.

As Khadilkar puts it, “We focus on product development and research and development of raw material to make our products exclusive. This also ensures that we maintain our margins in an otherwise cut-throat market scenario.” One of the recent product innovations has been of tiles that are sustainable and environment-friendly, as for example, using faux wood for flooring.

“Keeping this in mind, Somany Ceramics has introduced Wood Essentia, a range of faux wood planks that are exceptionally durable and designed to cater to a wide range of tastes. These can be used for both outdoor and indoor flooring as well as for walls,” informs Abhishek Somany, Managing Director, Somany Ceramics. The idea is to grab the attention of the consumers. And as Khadilkar informs, “Mirror finish tiles and tiles with exclusive gold and silver highlighters with intricate designs are quite in vogue.”

Wood Works

Among the latest preferences, customers now prefer wooden flooring. “India is traditionally a stone market but it is gradually opening up to wooden flooring. Growing global exposure and influence plays a major role in this change,” explains Aashish Poojari, Director, Havwoods India. Havwoods International recently stepped into the India market and opened up a sprawling 5,000 sq. feet showroom in Mumbai. It has worked with brands like Marks & Spencer, Sony, Aston Martin, Starbucks, Nandos, etc. to enhance its worldwide appeal. “We are meeting a lot of designers and sharing with them technical aspects and the different options available to them in terms of grading, textures, construction, widths, dimensions, species, patterns and installation options,” Poojari states.

The New Business Mantra

One of the changes in the recent past has been the setting up of exclusive stores, a strategy that has peeled down layers from the distribution model, thus passing cost benefits directly to the customers. “Trying to eliminate distributors and contacting the dealers directly has been a proven strategy for success in recent years,” Khadilkar says. This model also helps obtain direct feedback from the customers, thereby providing a direction for improvement in products and services.

As for Somany Ceramics, FY 2016-17 has been a year of milestones what with having trebled their sanitary ware manufacturing capacity at the Morbi plant from 3.03 lakh units to 11.50 lakh units per annum. The company has also set up a faucets plant at Bhiwadi that will become operational by next year. Currently, the company has 1,800 dealers and 15,000 touch points across the country. “We will continue our expansion drive in FY 2017-18 by opening 200+ franchisee showrooms and company-owned experience centers pan-India,” informs Somany.

Comment