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Internship Report
CERA
Submitted by:-

Abhinav Prakash (141205)


Section: B
Batch: MBA-FT (2014-2016)

Institute of Management, Nirma University


Date of Submission: 28th, April 2015
Introduction to Sanitary ware 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
to20% 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 is
that only 6% of the population is covered by sanitation.

Sanitary ware Demand


Sanitary ware Industries in India for the last 6-7 years has 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 sanitary ware 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 sanitary ware,
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 sanitary ware in India is
growing @ 15% -17% every year. The sanitary ware 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 Sanitary ware Limited, M/s. Madhusudan Ceramics,
M/s. Neycer India Limited), manufacturing sanitary ware for the last 15-20 years and have
established their Brand image. The organized sectors produce fully vitrified sanitary wares,

using latest technology and best of Ceramic Raw Materials available in India. The
unorganized sectors have adopted local Indian technology to manufacture the basic sanitary
ware 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 sanitary ware 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 sanitary ware 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.

Introduction to CERA Sanitary ware Limited


Launched in 1980, Cera is a pioneer in the sanitary ware segment in India. The first sanitary
ware company to use natural gas, Cera has been on the forefront of launching a versatile
colour 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,
reduces the water needs of households considerably. WCs designed to flush in just 4 litres of
water is another notable innovation by Cera.
Based in Kadi, Gujarat, Cera Sanitary ware Ltd. uses International technology, which has
ensured Ceras 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 25,000 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 Ahmedabad, Bangalore, Chandigarh, Kolkata, Cochin and
Hyderabad, Mumbai. With the opening of the Cera Bath Studios, the discerning consumers,
architects and interior designers can have full view of the Ceras premium ranges of WCs,
Wash Basins, Shower Panels, Shower Cubicles, Bath Tubs, Shower Temples, Whirlpools, CP
fittings etc. Cera Bath Studios will complement its existing network of 600 dealers and 5000
retailers. Several Bathrooms are displayed live, so that the customers can get a feel of Ceras
vast range of products.

Having shown a growth rate of more than 25% since last 3 years, Cera Sanitary ware Ltd.
today is the fastest growing sanitary ware company in India. For its contribution towards the
industrial growth, Cera's ED 'Mr. Vidhush Somany' received "The Nirman Ratna Award" in
September 2010.

History of Cera Sanitary ware Ltd:


Vikram Somany, Chairman & Managing Director of Cera Sanitary ware 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 Sanitary ware, 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, its 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
fully operational freedom Concentrate on brand-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.

Mission of the Company

To setup and carry out research and development for the manufacture and
development of sanitary ware products.

Provide high quality to sanitary ware products.

The Company is aiming to achieve 50-60% of market share for every product.

Vision of the Company


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

PRODUCTS
1

Wellness

Steam Shower Rooms


Shower Rooms
Shower Cubicles
Shower Partitions
Indoor Swimming Pool
Bath Tubs with Whirlpool
Bath Tubs
Shower Panels
Pressure Pump
Kitchen Sinks
2
3

Premium Pump
Classic Rane
Mirrors
Personal Care
Personal Care
Hand dryer
Perfume Sprayer with remote control
Perfume Refill
Hair Dryer

Internship:
The Internship project is with CERA-India Pvt Ltd that started on 13 th April 2015. My
organisation mentor Aditya Agarwal (aditya@cera-india.com , 9510028515) and my
organisation centre address is 2nd Floor, B Block The Acropolis Mall, S.G.Highway,
Thaltej, Ahmedabad-380054, Gujarat.
The project is to perform a marketing research to understand the purchasing behaviour of
Customers buying the construction material that CERA produces like Sanitaryware, Wellness,
faucets etc. I am performing this research in Noida city. The Questionnaire has been provided
by the company that mainly focuses on the brand awareness of CERA and its contemporaries
among the customers.
In the first 15 days, I have visited many stores and found that in NOIDA region the
consumers suffer a problem of hard water. This creates a problem in the faucets that they buy.
The faucets get rusted quite easily due to hard water. So the customers have an inclination
towards durable products or low cost products which are cheaper and of local brands. This
allows them to change the faucets easily in a span of 2-3 years if they get rusted.

Learnings:

The clarity of thought while communicating to the customer.


Customer has less time so be specific on what you have to ask.

Deal with the retailers patiently and communicate your project well so that they help
you.
Durability is the first concern for the people in the NCR region and then they look for
designs.
A lot depends on the suggestion given by the retailers.

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