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A Project Study Report On POTENTIAL ANALYSIS OF MARKET SHARE & SATISFACTION OF DEALERS

Training Undertaken at KAJARIA

Submitted in partial fulfilment for the Award of degree of Master of Business Administration

SUBMITTED BY: DIPESH PARASHAR MBA II SEM

SUBMITTED TO: MS. BINDIYA TATER (LECTURER)

SHOBHASARIA ENGINEERING COLLEGE, SIKAR SESSION:-2009-2011

PREFACE
Learning categorizes you and practicing on that learning specializes you. Theoretical concepts taught and discussed in the classroom prove useful if they have to remain relevant. Practice orientation of management student is must generating competence to deal with issues at grass root level it is for this reason that six week training project study is prescribed as a part of syllabus for MBA PROGRAME in Sikar. This training is the mode of imparting practical training to the student. The objective is to provide a deep insight into practical aspects of the functioning of the organization. The train apprises the student to the actual function, responsibility and problem faced by an organization. It provides him with the knowledge of the various kind of problem that crop up in the day to day functioning of the organization .The way they are solved by the departments and appraisal of the crucial decision taken by the manager at the crucial time. I was fortunate enough to complete my finance training at BHARAT ENGINEERING COMPANY. Bar-Pali road Raipur Marwar, (raj) website bharatengi@rediff.com This has given me an altogether new experience, which would be immense help to me in my future.

ACKNOWLEDGEMENT
I express my sincere thanks to my project guide, Ms.Bindiya tater, Lecturer, M.B.A Department for guiding right form of inception till the successful competition of the project. I sincerely acknowledge him for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support she had provided to me with all stages of this project. I would also like to thanks the cooperation throughout my project. staff of M.B.A Department for their help and

Dipesh Parashar

EXECUTIVE SUMMARY
The project was undertaken to Potential analysis of market share and level of satisfaction of dealer and sub- dealer of Kajaria and to adopt the best practices of the industry to serve the customer. To accomplish the above, around 100 dealers and sub-dealers of Kajaria ceramics limited JAIPUR was surveyed and interviewed. The core purpose of the survey was to find out dealers perspective towards the mainly induction that are given to them. An interview based on a questionnaire to know what does the customer feels in general towards its organization. The idea behind the study is to adopt the best practices and to eliminate the pitfalls of the system. The project is an approach is how to give feedback on training method effectiveness in meeting the objectives of the organization.

TABLE OF CONTENTS
1. INTRODUCTION OF INDUSTRAY 7 2. INTRODUCTION TO THE ORGNISATION..10 3. RESERCH METHODOLOGY............................................45 4. DATA ANALAYSIS AND INTERPERTATION.....................50 5.FACTS AND FINDINGS.....................................................55 6.CONCLUSION..................................................................69 7. SUGGESTIONS................................................................72 8. SWOT ANALAYSIS...........................................................76 9. BIBLIOGRAPHY...............................................................81

INTRODUCTION OF THE INDUSTRY

History of Tiles

The Latin word tegula and its French derivative tuile mean quite precisely a roof tile of baked clay. The English tile is less precise, for it can in addition be used of any kind of earthenware slab applied to any surface of a building. the word ceramic comes from the Greek word keramos meaning pottery, it is related to an old Sanskrit root meaning to burn but was primarily used to mean burnt stuff.

Historically, man has desired to create living spaces which were beautiful, durable and user friendly. With that in mind, ceramic tile has been made by man for 4000 years. Beautiful tiled surfaces have been found in the oldest pyramids, the ruins of babylon, and ancient ruins of Greek cities. Decorative tilework was invented in the near east, where it has enjoyed a longer popularity and assumed a greater variety of design than anywhere in the world. During the Islamic period, all methods of tile decoration were brought to perfection in Persia. In Europe decorated tiles did not come into general use outside Moorish Spain until the second half of the 12th century. The tile mosaics of Spain and Portugal, the majolica floor tiles of renaissance Italy, the faiences of antwerp, the development of tile iconography in England and in the Netherlands, and the ceramic tiles of Germany are all prominent landmarks in the history of ceramic tile

The technique of tile and its secrets of trade were safely guarded and orally handed from father to son and master to student; thus rarely have designs, patterns and details of technique been documented and few complete treatises exist on the art of tile work in the past. each tile was hand-formed and hand-painted, thus each was a work of art in its own right.

Simply defined, ceramic tile is tile made of clay. tiles were made by hand, in early days clay bricks - made by flattening the clay and cutting pieces into shape were dried beneath the sun or baked. Later the only mechanical aid was a wooden mould carved in relief, which indented a pattern on the clay slab. The slab was dried and the impression filed with clay, which after further drying was shaved flat. After the formation of the tile body, ceramic tiles

go through a firing process in a kiln under very high heat to harden the tile body create the surface glaze. Historically,

and

to

Unglazed tile was fired once. Glazed tile was fired twice. The first firing formed a tile body calledbisque. The biscuit firing had the highest temperature at 1060 C that fixed the tiles for size and shape. After glazing the tiles were fired at about 1020 - 1240 C. on glaze decoration was fired at 750 C, just before the glaze began to melt. The modern tile industry was advanced by reviving the lost art of encaustic tile making. The industry was further revolutionized in the 1840s by the dust-pressing method which consisted of compressing nearly dry clay between two metal dies. Dust-pressing replaced tile-making by hand with wet clay, and facilitated mechanization of the tile-making industry. Ceramic tile was used almost everywhere on walls, floors, ceilings, fireplaces, in murals, and as an exterior cladding on buildings. Today automated manufacturing techniques are used and the human hand does not enter into the picture until it is time to install the tile. They are used in an almost infinite number of ways and you dont have to consider yourself wealthy to own them. In commercial buildings, where both beauty and durability are considerations, ceramic tiles will be found, particularly in lobby areas and restrooms. In fact most modern houses throughout use Ceramic tiles for their bathrooms and kitchens and in every vital area of the premise like floor, front elevation, roof, parking and places like medical centres, labs, milk booths, schools, public conveniences, shopping malls and numerous other centres .Ceramic tiles are also the choice of industry, where walls and floors must resist chemicals. And the Space Shuttle never leaves Earth without its protective jacket of high-tech, heat resistant tiles.

Future of tile Industry


In order to maintain market growth, tile manufacturers will concentrate on developing and promoting new tile products, including modular or cladding tile, larger-sized tile, slip- and abrasion-resistant tile, and tile with a polished, granite or marble finish. This is being accomplished through the development of different body formulations, new glazes, and glaze applications, and by new and improved processing equipment and Techniques. Automation will continue to play an important role in an effort to increase production, lower costs, and improve quality. In addition, changes in production technology due to environmental and energy resource issues will continue.

Global Tiles Industry


There are three major regions in the world, namely, Asia, Latin America and European Union (EU), that produce and export ceramic tiles in bulk. In 2009, they had jointly produced more than 87% of the global output. World production of ceramic tiles was 7765 million sq.mt. In 2009.China was the largest producer with a total production of 2200 million sq.mt. Spain and Italy were the 2nd and 3rd largest producers with production of 635 million sq.mt. and 589 million sq.mt. Respectively. India ranks at 5th position with production of 270 million sq.mt, which is around 2.5% of global production.

The ratio between consumption and production has been stable at around 94 percent. Ceramic tile production has been increasing at a cumulative rate of close to 6 per cent. Asia is the most significant region by production, as well as consumption, accounting for more than 50 per cent of both. China is the leading country in the production of ceramic tiles with a share of 33 per cent at a total production of 2,200 million square metres, followed by Spain and Italy. Europe accounts for 30 per cent and USA accounts for 14 per cent of the total global production of ceramic tiles. In terms of consumption the pattern remains similar, with Asia accounting for 51percent, Europe for 26 per cent and USA accounting for 18 per cent of the total global ceramic tile consumption.

Ceramic tiles as a product segment has grown to a sizeable chunk today at 340 Millions Square meters production per annum. However, the potential seems to be great, particularly as the housing sector, retail, IT & BPO sectors have been witnessing an unprecedented boom in recent times. The ceramic tiles sector has been clocking a robust growth of 12-15% consistently over the last few years. Today, India figures in the top 5 countries in the world manufacturing ceramic tiles. The key drivers for the ceramic tiles in India are the boom in housing sector coupled by government policies fuelling strong growth in housing sector. The retail boom in the Indian economy has also influenced the demand for higher end products. Overall the bullish growth estimates in the Indian economy has significantly influenced the growth of the Indian Ceramic tile industry. The main product segments are the Wall tile, Floor tile, Vitrified tile and Porcelain tile segments. The market shares are 35%, 53% and 12% respectively for Wall, Floor & Vitrified/Porcelain tiles. The tiles are available in a wide variety of designs, textures and surface effects. They cater to tastes as varied from rustics to contemporary marble designs in super glossy mirror finishes. Both, traditional methods of manufacturing (tunnel ) and the latest single fast firing methods are deployed in manufacturing. Some of the latest trends in manufacturing methods can be seen in India. The investments in the last five years are approx. Rs 2000 crores. The industry also enjoys the unique distinction of being highly indigenous with an abundance of raw materials, technical skills, infrastructural facilities despite being fairly capital intensive. A total of over 5,50,000 people are employed in the sector. Out of this, 50,000 people are directly

employed and 5,00,000 are indirectly associated. The potential is huge considering the per capita consumption of ceramic tiles in India. Currently it is at 0.30 square meters per person in comparison to over 2 square meters per person for like countries like China, Brazil and Malaysia

Current

status

of

the

Industry

The ceramic tiles industry in India has followed similar trends internationally which have been characterized by excess capacities and falling margins. Countries like Malaysia, Thailand, Indonesia, Sri Lanka and Vietnam are setting up their own plants. China has emerged as a major competitor. Producers from Spain and Italy have the advantage of lower transportation costs while exporting to USA and Germany. In India, the per capita consumption is as low as 0.30 square meters per person compared to China (2 square meters per person), Europe (5 to 6 square meters per person) or Brazil (2.5 square meters per person). Rising disposable incomes of the growing middle class and 40 million units of housing shortage hold out a great potential.

A major change that took over the ceramic tiles industry, was the introduction of vitrified and porcelain tiles. These new entrant product types are said to be the tiles of the future. Internationally these tiles are already the major sellers. These category of products account for 13% of all organized sales in this industry.

These new products and the conventional wall & floor tiles have together made the organized industry grow to a formidable Rs. 3000 crores industry. This coupled with a spate of expansions by many players make the industry look very promising in the future.

The Indian Industry has developed an export market although at the lower end. In volume it constitutes less than half a percent of the global market. (Presently India does not figure in the list of major exporting countries). But this reality could change as Indian exports are rising at the rate of 15% per annum. The top-end of the global export market is presently dominated by Italy (40.8%) and Spain (26.4%).

Indian Tile Market


Ceramic Industry in India is about 100 years old and has matured over time to form an industrial base. From traditional pottery making, the industry has evolved to find its place in the market for sophisticated insulators, electronic and electrical items. Over the years, the industry has been modernising through new innovations in product profile, quality and design to emerge as a modern, world-class industry, ready to take on global competition.

Though there are a number of large companies in the ceramics sector, small and medium enterprises (SMEs) in India, offering a wide range of articles including crockery, art ware, sanitary ware, ceramic tiles, refractory and stoneware pipes among others. Most of the players are grouped together in clusters.

Over the last two decades, the technical ceramics segment has recorded an impressive growth propelled by the demand for high-alumina ceramics, cuttings tools and structural ceramics from the industry. Overall, the Indian ceramics industry has emerged as a major manufacturer and supplier in the global market.

India ranked 5th in terms of total production. Investments in the last 5 years have aggregated over Rs. 2000 crores and production during 2006-07 stood at approx. 270 million sq mts and having a share of more than 4.3% (organised and unorganised) with China being the leader with 36% share. There are, at present, 16 units in the organized sector with an installed capacity of 21 lakh MT. It accounts for about 2.5% of world ceramic tile production. The organised sector is characterised by the existence of a few large players, such as H & R. Johnson, Kajaria Ceramics, Bell Ceramics, SPL, Spartek and Murudeshwar Ceramics, OCIL and Nitco.

The unorganized sector accounts for 55% of the total industry bearing testimony of the attractive returns from this sector. The size of the unorganized sector is approximately Rs 3500 crores .Of the total market size floor tiles constitute 53%, wall tiles 35% and vitrified tiles 12%. The industry has grown at a rate of 15% p.a. for the past three years. In India, per capita consumption of ceramic tile is 0.15 sq. mtr. Per annum compared with 2 sq. mtr. per annum in China and 5-6 sq. mtr. Per annum in European countries. With the growth in

the housing sector the demand of ceramic is expected to increase. Indian tiles are competitive in the international market. The key drivers for the ceramic tiles in India are the boom in housing sector coupled by government policies fuelling strong growth in housing sector. The retail boom in the Indian economy has also influenced the demand for higher end products. Overall the bullish growth estimates in the Indian economy has significantly influenced the growth of the Indian Ceramic tile industry.

Size of the vitrified tiles market is estimated at Rs.600 crores and is growing at the rate of 30% p.a. making it the fastest growing segment in the tile industry. Some of major players in the vitrified tiles industry include organised companies like Murudeshwar Ceramics, H&R Johnson, Bell Granito and Regency Ceramics. In the unorganised sector, some of the major players are Euro Ceramics, Decolite Ceramics, Regent Granito, Varmora Ceramics, Sogo Ceramics, City Tiles, Restlie Ceramics etc.

The ceramic tile industry is characterized by intense competition, low entry barriers and high working capital requirements. The major demand drivers for the industry domestically are the high growth in the housing and construction sectors, easy availability of credit and increase in net disposable incomes. Vitrified tiles command a premium over other types of tiles mainly due to its superior physical properties. Within the vitrified tiles segment, realisations are driven by ability of a company to constantly introduce newer designs and concepts relative to its competitors and in line with the changing trends and preferences of customers.

CERAMIC TILE INDUSTRY STATISTICS:


1. 2. 3. 4. 5. 6. 7.

World production: India's Share: World ranking (in production): Per capita consumption: Global Industry Growth Rate: Growth Rate (India Domestic Market): Organized industry turnover (India): Glazed Wall Tile share: Glazed Floor Tile share: Unglazed Vitrified Tile share:

6900 Million sq.mt. 270 Million Sq.mt.. 5 0.30 sq.mt. 6% 15% Rs 3000 crores 40% 46% 8%

Glazed Porcelain Tile Share: 6% Unorganised Industry Turnover Glazed Wall Tile share: Glazed Floor Tile share: Unglazed Vitrified Tile share: Rs 3500 crores 57% 35% 6%

Glazed Porcelain Tile Share: 2%


8. 9.

Investments in last 5 years: Organized sector: Share of Production: No. of units: Revenue (excise duty):

Rs 2000 crores

56% 16 Rs 300 crores

10.

Unorganized sector: Share of Production: No. of units: Revenue (excise duty): 44% 200 (approx...) (70% based in Gujarat region) Rs 350 crores per annum or less

Manufacturing of Tiles
Raw MaterialsThe raw materials used to form tile consist of clay minerals mined from the earth's crust, natural minerals such as feldspar that are used to lower the firing temperature, and chemical additives required for the shaping process. The minerals are often refined or beneficiated near the mine before shipment to the ceramic plant.

The raw materials must be pulverized and classified according to particle size. Primary crushers are used to reduce large lumps of material. Either a jaw crusher or gyratory crusher is used, which operate using a horizontal squeezing motion between steel plates or rotating motion between steel cones, respectively.

Secondary crushing reduces smaller lumps to particles. Hammer or muller mills are often used. A muller mill uses steel wheels in a shallow rotating pan, while a hammer mill uses rapidly moving steel hammers to crush the material. Roller or cone type crushers can also be used.

A third particle size reduction step may be necessary. Tumbling types of mills are used in combination with grinding media. One of the most common types of such mills is the ball mill, which consists of large rotating cylinders partially filled with spherical grinding media. Screens are used to separate out particles in a specific size range. They operate in a sloped position and are vibrated mechanically or electromechanically to improve material flow. Screens are classified according to mesh number, which is the number of openings per lineal inch of screen surface. The higher the mesh number, the smaller the opening size.

A glaze is a glass material designed to melt onto the surface of the tile during firing, and which then adheres to the tile surface during cooling. Glazes are used to provide moisture resistance and decoration, as they can be colored or can produce special textures.

Once the raw materials are processed, a number of steps take place to obtain the finished product. These steps include batching, mixing and grinding, spray-drying, forming, drying, glazing, and firing. Many of these steps are now accomplished using automated equipment

Once the raw materials are processed, a number of steps take place to obtain the finished product. These steps include batching, mixing and grinding, spray-drying, forming, drying, glazing, and firing. Many of these steps are now accomplished using automated equipment.

Batching
For many ceramic products, including tile, the body composition is determined by the amount and type of raw materials. The raw materials also determine the colour of the tile body, which can be red or white in colour, depending on the amount of iron-containing raw materials used. Therefore, it is important to mix the right amounts together to achieve the desired properties. Batch calculations are thus required, which must take into consideration both physical properties and chemical compositions of the raw materials. Once the appropriate weight of each raw material is determined, the raw materials must be mixed together.

Mixing and grinding


Once the ingredients are weighed, they are added together into a shell mixer, ribbon mixer, or intensive mixer. A shell mixer consists of two cylinders joined into a V, which rotates to tumble and mix the material. A ribbon mixer uses helical vanes, and an intensive mixer uses rapidly revolving plows. This step further grinds the ingredients, resulting in a finer particle size that improves the subsequent forming process.

Sometimes it is necessary to add water to improve the mixing of a multiple-ingredient batch as well as to achieve fine grinding. This process is called wet milling and is often performed using a ball mill. The resulting water-filled mixture is called a slurry or slip. The water is then removed from the slurry by filter pressing (which removes 40-50 percent of the moisture), followed by dry milling.

Spray drying
If wet milling is first used, the excess water is usually removed via spray drying. This involves pumping the slurry to an atomizer consisting of a rapidly rotating disk or nozzle. Droplets of the slip are dried as they are heated by a rising hot air column, forming small, free flowing granules that result in a powder suitable for forming. Tile bodies can also be prepared by dry grinding followed by granulation. Granulation uses a machine in which the mixture of previously dry-ground material is mixed with water in order to form the particles into granules, which again form a powder ready for forming.

Forming
Most tile is formed by dry pressing. In this method, the free flowing powdercontaining organic binder or a low percentage of moistureflows from a hopper into the forming die. The material is compressed in a steel cavity by steel plungers and is then ejected by the bottom plunger. Automated presses are used with operating pressures as high as 2,500 tons.

Several other methods are also used where the tile body is in a wetter, more moldable form. Extrusion plus punching is used to produce irregularly shaped tile and thinner tile faster and more economically. This involves compacting a plastic mass in a high-pressure cylinder and forcing the material to flow out of the cylinder into short slugs. These slugs are then punched into one or more tiles using hydraulic or pneumatic punching presses.

Ram pressing is often used for heavily profiled tiles. With this method, extruded slugs of the tile body are pressed between two halves of a hard or porous mold mounted in a hydraulic press. The formed part is removed by first applying vacuum to the top half of the mold to free the part from the bottom half, followed by forcing air through the top half to free the top part. Excess material must be removed from the part and additional finishing may be needed.

Another process, called pressure glazing, has recently been developed. This process combines glazing and shaping simultaneously by pressing the glaze (in spray-dried powder form) directly in the die filled with the tile body powder. Advantages include the elimination of glazing lines, as well as the glazing waste material (called sludge) that is produced with the conventional method.

Drying
Ceramic tile usually must be dried (at high relative humidity) after forming, especially if a wet method is used. Drying, which can take several days, removes the water at a slow enough rate to prevent shrinkage cracks. Continuous or tunnel driers are used that are heated using gas or oil, infrared lamps, or microwave energy. Infrared drying is better suited for thin tile, whereas microwave drying works better for thicker tile. Another method, impulse drying, uses pulses of hot air flowing in the transverse direction instead of continuously in the material flow direction.

Glazing
To prepare the glaze, similar methods are used as for the tile body. After a batch formulation is calculated, the raw materials are weighed, mixed and dry or wet milled. The milled glazes are then applied using one of the many methods available. In centrifugal glazing or discing, the glaze is fed through a rotating disc that flings or throws the glaze onto the tile. In the bell/waterfall method, a stream of glaze falls onto the tile as it passes on a conveyor underneath. Sometimes, the glaze is simply sprayed on. For multiple glaze applications, screen printing on, under, or between tile that have been wet glazed is used. In this process, glaze is forced through a screen by a rubber squeegee or other device.

Dry glazing is also being used. This involves the application of powders, crushed frits (glass materials), and granulated glazes onto a wet-glazed tile surface. After firing, the glaze particles melt into each other to produce a surface like granite.

Firing
After glazing, the tile must be heated intensely to strengthen it and give it the desired porosity. Two types of ovens, or kilns, are used for firing tile. Wall tile, or tile that is

Prepared by dry grinding instead of wet milling (see #2 and #3 above), usually requires a two-step process. In this process, the tile goes through a low-temperature firing called bisque firing before glazing. This step removes the volatiles from the material and most or all of the shrinkage. The body and glaze are then fired together in a process called glost firing. Both firing processes take place in a tunnel or continuous kiln, which consists of a chamber through which the ware is slowly moved on a conveyor on refractory batts shelves built of materials that are resistant to high temperaturesor in containers called saggers. Firing in a tunnel kiln can take two to three days, with firing temperatures around 2,372 degrees Fahrenheit (1,300 degrees Celsius).

For tile that only requires a single firingusually tile that is prepared by wet millingroller kilns are generally used. These kilns move the wares on a roller conveyor and do not require kiln furnitures such as batts or saggers. Firing times in roller kilns can be as low as 60 minutes, with firing temperatures around 2,102 degrees Fahrenheit (1,150 degrees Celsius) or more.

After firing and testing, the tile is ready to be packaged and shipped.

Introduction Of Company

Kajaria Ceramics Ltd


Kajaria Ceramics Limited is the largest manufacturer and exporter of ceramic wall and floor tiles in India. Kajaria is the first tile company to win the Super brand Status. Kajaria`s distribution network comprises of about 600 dealers. Kajaria Ceramics is the largest manufacturer of ceramics tiles in India. It has an annual capacity of 21 mn. Sq. mtr. Distributed across two plant Sikandrabad at Uttar Pradesh (capacity 6.90 mn. Sq. mtrs) and Gailpur at Rajasthan (capacity 14.10 mn. Sq. mtrs.).

The Company is in advance stage of commissioning 2.5 mn sq mtr vitrified tile facility at Sikandrabad (Uttar Pradesh), adding a margin-accretive product vertical to the business model. After this, the aggregate capacity of the Company would become 23.50 mn sq mtr of tile production per annum.

The company has received the ISO 9001 (for quality management), ISO 14001 (environment management), OHSAS 18001 (for safety and health management) and SA8000 (for commitment to society) certifications across its plant. ), These plants also fulfil international norms. It is a continuous process, which allows the company to express through tiles what words can't say and provide our consumers with new and innovative options. It has unmatched product offering (wall, floor, vitrified, Spanish and Italian tiles). It has brand enhancing customers like Unitech, DLF, Parsvnath, Magarpatta, Sobha Developers, DSK, Mantri Group, Prestige Group, Ansals, Hiranandani, Raheja Developers, Omaxe and EMAAR-MGF, among others.

BOARD OF DIRECTORS
Mr. Ashok Kajaria (Chairman & Managing Director) Mr. D.D.Rishi (Joint Managing Director) Mr. Chetan Kajaria (Whole Time Director) Mr. Rishi Kajaria (Whole Time Director) Mr. R.P.Goyal (Independent Director) Mr. R.K.Bhargava (Independent Director) Mr. D.P.Bagchi (Independent Director) Mr. R.R.Bagri (Independent Director) Mr. R.C. Rawat VP (F&A) & Company Secretary

COMMITTEE OF THE BOARD AUDIT COMMITTE


Mr. R.P.Goyal -Chairman Mr. R.K.Bhargava -Member Mr. R.R.Bagri -Member Share Transfer and Investors Grievances Committee Mr. R.R.Bagri -Chairman Mr. Ashok Kajaria -Member Mr. D.D.Rishi -Member

Project Management Committee Mr. Ashok Kajaria -Chairman Mr. D.D. Rishi -Member Mr. Chetan Kajaria Member Mr. Rishi Kajaria Member REGISTERED OFFICE A-27 & 28, Sikandrabad Industrial Area, Sikandrabad, Dist. Bulandshahr, (U.P.)

Kajaria Tiles Growth History


1985 - The Company was incorporated on 20th December at Kanpur. It manufactures glazed and unglazed wall & floor tiles. The company obtained the certificate of commencement of business on 20th January 1986. It was promoted by Shri Ashok Kumar Kajaria, his associate and Kajaria Exports Ltd. The Company entered into a technical collaboration agreement with Todagres S.A., Spain for the manufacture of ceramic glazed wall & floor tiles. The agreements provides for supply of technical know-how and

manufacturing assistance necessary design, drawings, and specifications and also trains the companys personnel and provide technical assistance for the setting up of the plant.

The company undertook a project to set up a plant for the manufacture of 12,000 tpa of ceramic glazed wall/floor tiles in various shades. The plant is located on a plot of 17.5 acres acquired from UPSIDC at Sikandrabad Industrial Area in Bulandshahr district of U.P. main plant and machinery was supplied by Sacmi Imola and Omis Due SPA of Italy. Three D.G. sets of a total capacity of 835 KVA were installed to meet contingent power requirement.

The company has an obligation to export 25% of the production for a period of 5 years from the date of commercial production. It was hopeful of meeting the export requirement with the help of the promoter company, Kajaria Exports, Ltd. The company received the necessary registration for the expansion of the installed capacity from 12,000 tpa to 26,000 tpa.

1987

-700 shares subscribed for by the signatories to MOA 53,32,700 shares then issued at par of which the following were reserved for allotment(1) 23, 32,700 shares to promoters , Indian resident directors (2) 8, 00,000 shares on repatriation basis to NRIs and NRI companies owned predominantly by NRIs. Out of the remaining 22, 00,000 shares, the following were preferential allotment.

(1) 2,66,600 shares to employees, Indian working Directors, workers of company and employees of Kajaria Exports Ltd.(only 11,000 shares taken up) , (2) 5,00,000 shares to NRIs on repatriation basis only 39,600 The balance 14, 33,400 shares along with unsubscribed 17,15,600

shares of preferential quotas, were offered to the public in September 1988. Additional 8, 00,000 shares allotted to retain over subscription.

1989

-The company maintained an average capacity utilization of 120%. The Company started exporting tiles to the Gulf countries, Europe and Bangladesh. New ranges of tiles were introduced in the market. Various new designs and prints were introduced in the market. The expansion programme was on the verge of completion and production at the expanded capacity was expected to commence in June, 1990. During August/September, the company offered 3, 22,000 -14% secured full convertible debentures of Rs. 100 each were offered on rights basis to the existing shareholders in the prop. 5 debentures: 100 equity shares (all were taken up). Simultaneously, 15,330 debentures of Rs. 100 each were offered to the employees and working directors of the company on an equitable basis (only 785 debentures were taken up).

Additional 31,455 debentures along with the unsubscribed portion of 14,545 debentures from employees quota were allotted at the discretion of the Directors. As per the terms of issue , part A of Rs. 40 of each debenture was converted at par into four equity shares of Rs. 10 each at the end of 6 months from the date of allotment of the debentures. Accordingly 14, 13,820 shares were issued. The remaining part of Rs. 60 was converted into 3.53 number of equity shares of Rs. 10 each at a premium of Rs. 7 per share on 15 th dec. 1991.

1990

- A further expansion of installed capacity from 26,000 MT to 40,000 MT was being implemented 14, 13,820 shares allotted at par in conversion of debentures.

1991

-The company was awarded "CAPEXIL" special exports award for the year 1992 for being the largest exporter of ceramic tiles from the country. The company proposed a further expansion of the installed capacity to 60,000 MT 12, 47,696 shares allotted in conversion of debentures.

1993

-The company proposed a further expansion of the installed capacity to 1, 30,000 MT with the support of technical collaborators M/s. Todagres SA of Spain. During July , the company issued 21,98,729- zero interest unsecured fully convertible debentures of Rs. 70 each at par on right basis in the proportion of 1 debenture : 4 equity shares held. Another 5,49,671 zero interest unsecured fully convertible debentures of Rs. 70 at par were issued on preferential basis to promoters , directors and their friends including group companies. Each debenture of Rs. 70 will be converted into 2 equity shares of Rs. 10 each at a premium of Rs. 25 per shares on the expiry of 9 months from the date of allotment or on 1 st April 1994, whichever is earlier.

1994

-During the year the company successfully launched wall tiles Manufactured with single firing technology which was well accepted in the market. The company proposed to issue 2,00,000 14% non convertible debentures of Rs. 100 each at par to financial institutions/ mutual fund on private placement basis. 54, 96, 800 no. of equity shares allotted on conversion of zero interest unsecured fully convertible debentures.

1995

- 4, 25, 000 no. of equity shares allotted to IFCI in terms of exercise of conversion option under loan agreement.

2003

-The Members approved the of Mr. Rishi Kajaria as Director on the Board and ratification of re-appointment of Mr D.D.Rishi in the capacity of Jt. Managing Director of the Company for a period of 5 years and voluntary delisting of equity shares from U P Stock Exchange Association Ltd.,Delhi Stock Exchange Association Ltd. and Calcutta Stock Exchange Association Ltd. Kajaria Ceramics Ltd has informed that the securities of the company have been delisted from the Delhi Stock Exchange Association Ltd w.e.f December 10, 2003.

2004

-Kajaria Ceramics Ltd has informed that consequent upon acquisition of R&TA Division of M/s Computech International Limited by M/s MCS Limited, the Registrar & Transfer Agent of the Company stands changed from M/s Computech International Ltd to M/s MCS Limited. The change of the same has been approved by the Board of Directors in their meeting held on December 26, 2003Commenced the commercial production of its additional capacity of 2 million sq mtr per annum on February 27, 2004, with an investment of Rs.340 million at Gailpur Plant. With this expansion, the aggregate capacity of the company has become 14 million sq.mtr per annum.

Milestones of Kajaria
1988 - Production of ceramic tiles begins with single firing technology.

1990

- Expansion of capacity from 12000 MT to 26000 MT

1991

- Further increase in capacity to 40000 MT

1992

- Kajaria win the CAPEXIL award for highest exports

1994

- Monoporosa wall tiles introduced for the first time

1995

- Capacity expanded to 80000 MT

1996

- Rs. 1 bn. Turnover crossed

1997

- World economic forums honours Kajaria as one of the top performing global growth company from India. (a) Kajaria captures 15% market share and reaches the no. 2 position in the ceramic industry. (b) Win the CAPEXIL award for highest exports.

1998

- Capacity expanded to 150000 MT equivalent to 33000 sq. Per day , at par with the international players.

1999

- Rs. 2 Bn. Turnover crossed

2000

- National export award presented by prime minister for outstanding export performance in the ceramic glazed tile segment.

2003 2004

- Rs. 2390 mn. Turnover achieved - Rs. 2698 mn. Turnover achieved reflecting growth of 13%.

Production
Kajaria Ceramics is the largest manufacturer of ceramics tiles in India. It has an annual capacity of 21 mn. Sq. mtr. Distributed across two plants Sikandrabad at Uttar Pradesh (capacity 6.90 mn. Sq. mtrs) and Gailpur at Rajasthan (capacity 14.10 mn. Sq. mtrs.) .

The Company is in advance stage of commissioning 2.5 mn sq mtr vitrified tile facility at Sikandrabad (Uttar Pradesh), adding a margin-accretive product vertical to the business model. After this, the

Aggregate capacity of the Company would become 23.50 mn sq mtr of tile production per annum.

The company has received the ISO 9001 (for quality management), ISO 14001 (environment management), OHSAS 18001 (for safety and health management) and SA8000 (for commitment to society) certifications across its plant. ), These plants also fulfil international norms.

Over the years, Kajaria has become synonymous with innovation. New techniques are diligently applied to create tiles that stand apart and speak the language of your soul. Hence every year, it comes up

With exciting new concepts that voice new emotions and keep up with current trends. The manufacturing units are equipped with cutting edge technology, intense

Automation, robotic car application and zero chance of human error, helps it to maintain high quality and top position. Also theses manufacturing plants are well equipped to cope with ever increasing demands of customers, conscious of quality and design.

It is a continuous process, which allows us to express through tiles what words can't say and provide our consumers with new and innovative options. The new range of tiles released this year adds to the already impressive Kajaria Collection.

ACCREDITATION
Capexil Award - Certificate in Recoginition of Export achievement in respect of Glazed Ceramic Tiles for the year 2008-2009.

Achievements for Kajaria are not just about being number one brand; the company is conscious of its social responsibilities and committed to improving the quality of life. In 2001 Kajaria became one of a handful of companies in India and the only one in the tiles industry to adopt a formal environment policy. To fulfil this obligation Kajaria undertook extensive product reformulation, process modification, equipment

Redesign and re-cycling and re-use of materials. For this it was bestowed the ISO 14001 certification.

Kajaria Gailpur is the only plant in India to have the following four ISO Certifications

The company was awarded the prestigious OHSAS 18001 for fulfilling international standards in occupational health and safest management system specifications. Its no surprise that Kajaria Ceramics is also amongst a very few ceramic tile companies in the world to get this certification. It was also the first company in the ceramic tile industry to receive the ISO 9002 certification confirming its adherence to global standards of quality. The world Economic Forum has also selected the company as one of the top performing Global Growth Companies from India. The latest feather in the cap is that we have been selected as the Business Superbrand. Each of these recognitions has spurred the company to outperform itself.

AWARDS
Kajaria Ceramics Limited has been awarded the "Super Brand" Title. Kajaria is the only ceramics tile company who have won the status of consumers "Super Brand".

Mr. Ashok Kajaria (Chairman & Managing Director) receiving the award presented by Honourable Minster for Civil Aviation, Mr. Praful Patel.

Kajaria has been only Tiles company in India to achieve the rare distinction of being a superbrand (considered Oscars of branding in India) ,for the fourth time in a row , a status shared by only sixty other corporate houses in India.

The company has had a unique distinction of having received the President's Award for achieving the highest exports in the industry.

Kajaria Ceramics is the largest exporter of ceramic tiles in India and consistently winning the Export Awards.

Mr. Chetan Kajaria with the National Export Award Presented by the Prime Minister of India.

Dealer/ Sub Dealer showroom


Kajaria Ceramics has a strong distribution network of about 600 dealers and over 6000 subdealers spread all over India. These Dealer showrooms showcase innovative products, panels and display various colour combinations for customers to choose from. The display division of the marketing department has done a remarkable job by upgrading 600 dealer and 6000 sub-dealer showrooms across the country.

Competitors of Kajaria Tiles


Orient Ceramics Industries Ltd.
OCIL was formed on 18th May 1977 as a public limited company and has been at the forefront of innovation in home dcor ever since. In 1993, Mr M K Daga, the foremost ceramic tile technologist in India took over the management of OCIL. Over the years, the company has grown from strength to strength and has expanded in terms size, scale, network, product portfolio and turnover.

An innovative and forward-looking brand, the company has many firsts to its name. OCIL is the pioneer in the manufacturing of Ultra Vitrified Tiles in India. The company also has the distinction of being the first company in the country to have an in-house European Designer. Quality and durability, combined with the aesthetics of design and colour make Orient Ceramics not just a tiles manufacturer but also a company that offers extraordinary wall and floor solutions. OCIL manufactures one of the widest range of Non-Vitrified, Vitrified, Ultra Vitrified and 3rd Fired Decorative Tiles for walls, floors & facades. The company also imports and markets Vitrified Porcelain Tiles, Borders, Motifs and other value added accessories from various countries to complement its wide range of tiles.

From an initial installed capacity of 4,000 TPA in 1977, the companys production capacity now stands at 220000 TPA or 38,000 square metres per day. Orient Ceramics has state-ofthe-art, environment-friendly manufacturing facilities. The technologically sound

manufacturing units conform to the ISO 13753-56:1993 of BIS and ISO 10545-1/17, ISO 13006 specifications. The company has been accredited with ISO 9001:2000, ISO 14001 and ISO 18001 certifications for quality control management systems.

Orient Tiles clientele, comprising individuals, house builders, architects and institutions, are not only found in India, but are also spread across Europe, South East Asia, Middle East and the SAARC countries. The company has plans to expand

the export base and to also leverage its strong network of over 1200 retailers and more than 4000 secondary retailers spread all over the country. Orient Ceramics clientele in the real estate development space includes leading developers like DLF, Unitech, Parsvnath, Shobha Developers, Raheja, Larsen & Tourbo, Rites, CPWD, MES, AAI and other large and small builders. Orient products have been extensively used in the construction of the prestigious Rashtrapati Bhawan in addition to beautifying structures like India Habitat Centre (New Delhi), Delhi High Court, Kolkata Airport, DMRC Stations and ITC-Sonar Bangla (Kolkata) among others. The company owns two exclusive showrooms in Delhi and Sikandrabad and has more than 1000 franchised outlets across the country. Orient remains committed to bring the best in tile designs and quality to Indian consumers.

Asian Tiles
This company is the result of the dreams of three entrepreneurs, materialized with the grassroots of passion, experience & dynamism With starting a quest for excellence a decade ago, today Asian tiles have blazed a trail in the tile industry. With humble beginning in the field of floor tiles, today it has expanded till the horizon, covering almost each of the aspects of the industry. Supported by vast man power along with mind power, Asian Tiles possesses the strength of over 3000 business associates spread across the nation. Asian is all set to reach the goal of supplying world class product, through a network of 18 depots with display centres & ultra modern plant in the ceramic zone of Sabarkantha, Gujarat, spread over an area of 2, 30,000 Sq. Mtr. and production capacity of two plants is 32300 Sq. Mtr. Per day of tile. Asian has become India's leading wall tile manufacturer in large format size, with the biggest size of 300 X 900 mm, where we provide wall tiles of white body similar to European tiles, with the promise of extremely accurate size control, to add brightness and depth to the glaze. It is having all tiling solution like floor and wall segment. In floor segment it has vitrified, ceramic, aqua art products with the sizes & with versatile design series to match the end consumer choice and to attract the attention of builders and architect. In wall segment we are the biggest tile manufacture in India and we produce 15,000 sq meters per day with the size and design. To spread at all India it has qualified marketing team who can cater all nook and corner in India. In its product portfolio it also has Marble stone range also and it is available in premium and popular segment to satisfy the consumers needs. In India Marble segment is growing and we would also like to cater that segment with the understanding of market trend.

H & R JOHNSONS:
Established in 1958, H & R Johnson (India) is the market leader in the field of ceramic tiles in India. The company is promoted by Mr. Nenshi Shah, Mr. Talakshi Nandu , Mr. Kumar Shah , Mr Paresh Shah. HRJ has consistently maintained its leadership position in the field of tiles over the past five decades. Today, HRJ enjoys the reputation of being the only company in India to offer end-to-end solutions of Tiles, Sanitaryware, Bath Fittings and Kitchens. Under its flagship brand, Johnson, HRJ offers glazed wall and floor tiles, bath products, kitchens, laminate and engineered wooden flooring. Marbonite brand offers a complete range of vitrified tiles, and Endura offers industrial tiles and tiles for special applications like bathrooms / high traffic areas / swimming pools etc. HRJ has recently launched top-end, premium range of products under Johnson Ceramics International brand. HRJ has a strong service network of technicians and engineers spread across the country. This network complements the range of bath products by offering various services like installation, trouble-shooting, repairs, and AMC. HRJ's sales volume for the year 2008-09 was 37 million sqm of tiles and plans to achieve 90 million sqm by 2014-15. Keeping world class quality in mind, its manufacturing facilities are ISO 9001:2000 certified.

NITCO TILES
Nitco Tiles Private Limited was incorporated on July 25, 1966 at Delhi to take over the business of manufacturing and marketing of tiles from The Northern India Tiles Corporation (Bombay). Subsequently, the company was converted into a public limited company with effect from January 25, 1996. Pursuant to this, the name of the Company changed to Nitco Tiles Limited. Pursuant to the take over of the business of the partnership firm, the Company started to manufacture mosaic and terrazzo tiles at Thane, Maharashtra. In 1984, they started the operation at Kanjurmarg, Mumbai for processing and distribution of imported marble in India. Growing further, in 1995, they began the implementation of a green field project for manufacture of ceramic floor tiles at Alibaug, Maharashtra and started the commercial production of ceramic tiles in 1997. In 2002, they started one more marble processing unit at Slivassa. In 2004, it scaled up operations of outsourcing vitrified tiles from China.. Currently the product portfolio comprises of ceramic tiles, vitrified/wall tiles, cement terrazzo tiles, pavers and marbles etc.

The company is renowned and revered for its revolutionary concepts, pioneering endeavours and premium products in the construction industry for over five decades. Today, with its rich repertoire in offering unique Floor Tiles, Mosaico, Wall Tiles and Marble, Nitco has gone to become the one of the preferred name and the ideal choice of millions of house-holds and the real estate fraternity. An avant-garde at the core, the company has continued to pioneer ground breaking innovations in all its offerings.

Ceramic

Tiles,

Vitrified

Tiles,

Pavers,

Imported

Marble,

Engineered

Marble,

Intarsiasplendours of inlay marble and Mosaico- artistic creations in mosaic rendered in stone, ceramic and marble, for instance. Winning 13 Capexil awards for innovation and design is the perfect testament to all of its achievements. Nitco's widespread network includes 18 depots, 750 direct dealers and over 5000 sub dealers spread across the country. Apart from a closely interlinked network, the Company also has 4 factories and various offices in India, with its headquarters located in Mumbai.

SOMANY TILES
Whether ceramic glazed tiles, vitrified tiles, sanitary ware or porcelain floor tiles, Somany has been one company known for style and quality. In 1969 Shri H L Somany incorporated a company called Somany Pilkington's, which later became Somany Ceramics Ltd. It was the power of a dream and the zeal to excel, that drove Shri H L Somany to forge a path of success for this company.

In 1971 the very first unit of Somany started production in Kassar, Haryana. Since then Somany has reached and surpassed many milestones setting-up of second unit in 1981, buyout of all equity shares by Somany's Indian promoters in 1994; achieving Government recognition for its R&D Department in 1996 (a first in the tiles industry); getting ISO 9002 certification in 1998; achieving ISO 14001 for environment friendly facilities, in 1999; ventured in retailing in 2007, joint venture with Keraben under brand name Synergy, got patent for VC technology-a first ever in Indian Ceramics industry and incorporation of HL Somany group.

Somany Global flagship retail showrooms are currently located in Delhi, Gurgaon, Ludhiana and Mumbai, Pune and Indore. Many other retail showrooms are about to be opened in leading centres. These showrooms cater to high-end customers and offer imported tiles as well as exclusive Aqua ware brand sanitary ware. A large network of Somany display centres are also spread across the country. A wide cutting-edge array of designs and material make up the inspiring Somany range of tiles. Somany strives to bring its customers floor, wall, vitrified, ceramic, porcelain and innovative tiles that are the very latest in the world.

Somany is focusing on creating a niche for itself in this sector, by bringing in and adopting the latest in design, concept and technology. In the endeavour to bring the very best to customers, they source their raw material from as far as Italy, Spain, and China besides Rajasthan, Uttar Pradesh, Madhya Pradesh and other major centres in the country.

Somany has a production capacity of 15.7 million sq met per annum from its Haryana and Gujarat units. It has always focused on acquiring and leveraging the latest

technologies and know-how. A commitment to bring to life new ideas and design innovations is driven by the huge amounts of funds invested in research and development. This has borne fruit in the form of Somany's achievement of establishing the very first Government Recognized In-house Research & Development Centre.

Somany has also brought in some ground-breaking technologies into the Indian market. Their highly advanced Rot colour Machine has the capacity to decorate ceramic tiles with glazes, using a serigraphic decorating system that employs silicon cylinders. This integrated system that optimizes decoration of tiles enables any kind of random design and also a marble effect. Another exceptional technological advantage has been achieved with Somany's Laser Guided Vehicle system. This cutting-edge material transportation system has automated the movement of ceramic materials in the production system. The Laser Guided Vehicle facilitates optimal and accurate handling, thereby minimizing rejection of inprocess materials during the production of tiles. All of this is a result of Somany's commitment to bring the best and the latest to its valued stakeholders and customers in India.

Bell Tiles
The company started in 1985 with the aim of manufacturing world-class ceramic glazed tiles. Two plants, strategically located near major Indian markets. One near Vadodara, Gujarat, Western India; other near Bangalore, Karnataka, Southern India. Vadodara plant has production installed capacity of 63.87 lakes square meters per annum of wall and floor tiles. Bangalore plant has an installed capacity of 82.13 lakes square meters per annum of floor tiles. Wide range of breathtaking products to suit various consumer preferences Like Ceramic Glaze Wall Tiles. 200mm x 300mm, Ceramic Glazed Floor Tiles. 300mm x 300mm, 400mm x 400mm, Also available Edge Cut Floor Tiles in large 397mm x 397mm format for that joint free look, Bell is a pioneer in making Non-Skid Group-V Series, Floor Tiles in 300mm x 300mm, 400mm x 400mm & In Edge Cut 397mm x 397. ISO

9001:2000 and ISO 14001 manufacturing facilities strategically located near prime markets in India. Manufactured according to COMITEE EUROPEAN DE NORMALISATION (CEN).

It has well-spread and well-connected distribution network comprising 29 Depots, more than 1000 Dealers and over 4000 Retailer to ensure optimal delivery. Country-wide connectivity of depots through world-class ERP software adds to effective outbound logistics, inventory and receivable controls. It has been feted with many awards for performance including Certificate of Merit conferred by the President of India for meritorious performance in Exports. It also keeps in touch with end-users, influencers and channel partners with regularly organised events, exhibitions and meets.

INTRODUCTION OF THE STUDY

INTRODUCTION TO THE PROJECT TOPIC


Marketing as it is said is the one of the corporate activities. Half the battle is won if the marketing strategy is right. Marketing is the field, which deals with getting right things , by right people. It is first and for most in launching and distributing the product and services.

The market research is meant to get the knowledge o the latest trend prevailing in the market and to know about the mood of the customer. Marketing environment is changing at an accelerating rate. Change levels vary from Buyer need to buyer want,

- National to regional to local,

- Price to non price competition

Look for real time marketing information to give company a competitive advantage over its competitors.

This survey deals with marketing a database of the dealers, who are closest to the real time happenings in the market and the end customers.

Research Methodology
TITLE OF THE STUDY- Potential analysis of market share and satisfaction of dealers Universe the universe was Jaipur city with the finite sample size of 100 Sampling technique the sampling technique adapted was random Sampling. For
the same purpose , visits to random dealers and sub dealers was made , in different areas of Jaipur , keeping in mind the objective of minimizing Bias and maximizing the reliability of data. Also, by adopting this procedure it was ensured that the sample drawn would have the same composition and characteristics of the population.

Research Design the research was descriptive in nature as it dealt with describing
the market and potential of the dealers and also the survey of the consumer to know about perception. The research was designed to discover the potential dealer / sub dealer.

Data collection A questionnaire was developed to conduct the research. The


researcher put to the respondents the questions form and recorded the replies. The questionnaires were the best available alternative for data collection. The other option was that of interview and questionnaire. The schedule had many features which added value to its use as a tool for accumulation of required information.

Limitations of the study


Due to time constraint, the area under study was limited to only a selected segment of the market. The population selected was dealers, sub dealers and retailers and customer. Hence the findings of the study may pertain only to the area covered by the researcher.

The researcher faced major problems while conducting survey taking in to consideration, various constraints, which deal with the middle class. The result of the study depends on the information furnished by the respondents and hence the information provided by them may subject to sampling bias. Preference and response of customer could change over a period of time. Some of the respondents did not respond properly and accurately due to time constraints, which was main hindrance. Some of the sub dealers were completely new, so they felt amazed and suspicious of the survey. Also some dealers, dealing in other tiles refused to entertain any such survey conducted by Kajaria.

Also the personal bias of the dealers towards and against Kajaria brand might alter the correct response to the survey questions.

FACTS AND FINDINGS


FACTS
There are many facts I have in Kajaria ceramics limited few are as follows :-

1. The training and development procedures in Kajaria ceramics limited are good.

2. The employees in Kajaria ceramics limited are encouraged by their superiors so that they can work efficiently and learn more about their job.

3. The duration of the training procedure in Kajaria ceramics for the employees is sufficient for their effective learning.

4. The trainers in the Kajaria ceramics create a friendly atmosphere so that the employees can ask their queries without hesitation.

5. The atmosphere provided in the training area is very clean so that the employees do not feel annoyed.

6. The employees were not so much happy with the training as they feel that some alternative knowledge should be provided to them.

7. The training schedule of the employees was abrupt and hectic so they felt very tired mentally and physically.

8. Some of the employees felt that the training provided to them was not so good for their learning.

1. The environment and working conditions for employees are good.

2. A food mess runs whole day for workers.

3. Tea provision is also provided for employees.

Safety securities are provided while working and training.

Significance of the study

Significance for the industry


This is a limited study which takes into consideration the responses of 100 dealers. This data can be explored to find out the trends across the industry. The significance for the industry lies in studying these trends that emerge from the study. It is a rapidly changing and evolving sector. A study like this can attempt to guide the future of the industry based on current trends. Also the views of the dealers would help in determining the future strategies of the companies and add to the betterment of end user requirement.

Significance for the researcher


To have a firsthand research experience about tiles industry. Various primary and secondary data sources would help in shaping a good notion about the industry trends and its future prospects. Also recommending measures to improve the present scenario of a company would boost up the confidence of the researcher.

Title of the study Potential analysis of market share and level of satisfaction of
dealers and sub dealers of Kajaria.Duration 45 days.

Specifying Research objective


The present research was conducted to achieve the following objectives: To know the market potential for Kajaria wall and floor tiles

To collect the database sub dealers, retailers who play an imperative role in distribution of Kajaria Products To know the preference of Architects and builders for wall and floor ceramic tiles.

To gain information about various construction sites (where there is requirement of tiles) undertaken by these architects and builders. To know the dealers perception towards Kajaria products To study the various factors to which customer gives importance while purchasing. To know the major competitors and their schemes which are offered as promotional tool. To do the SWOT analysis of the company. To give necessary suggestions to the company.

Scope of study
The project work entitled potential study of market share and level of satisfaction of dealers an sub dealers of Kajaria was conducted in the city of Jaipur. The survey has been conducted for the purpose of analysing the perception pattern of the respondent. A multiple choice questionnaire was designed for the same purpose.

This questionnaire includes various aspect information like customer preference, dealer perception towards Kajarias product, various factors affecting the purchasing of the product, major competitors and their different kinds of scheme and benefits. Thus to collect information to improve market share and to make suitable marketing strategy with the help of all this information.

Data Analysis and Interpretation

Data Analysis and Interpretation

1.According to you what does the consumer prefers before buying tiles?

Consumer preference while buying tiles


Cost Brand Quality 3% 25% 30% Variety Delivery

12% 30%

Interpretation

Brand and cost are most important criteria for selection of tiles, by customers. The company should focus on both parameters equally, and should ensure the cost of the products , should not seem rocket high. Also during the survey, most dealers said that customers believe that quality comes from brand image which makes brand building all the more crucial. The second important factor is variety, so if the company can deliver variety in different price range category, consumers will not need to go anywhere else, for more options.

2..While buying which brand consumer prefers the most?

Preferred brand by consumer


Kajaria Somany Bell Nitco Others

37%

42%

5% 5% 11%

Interpretation

Kajaria clearly emerges out to be a market leader, with closest competition with Somany tiles. Many other brands like orient, Nitco, Asian are also noticeable players in the market. Also there is a large market of Gujarat tiles, which is known for being less expensive and dealers find their margin in these tiles high. Some tile dealers also deal in imported tiles and serve high end customers.

3.For which portion of the house consumer prefers tiles?

Most preferred area for Tiles


Room Kitchen Bathroom 3% 7% 2% 16% Front elevation Roof Parking

14%

58%

Interpretation

The sale of tiles for bathrooms, surpass other areas by a large margin. It can be concluded that most of the households prefer tiles at least in their bathrooms. Other than bathrooms, kitchen and rooms also find large application of tiles. So apart from providing a wide variety for bathrooms, the company should also concentrate on other areas and should try to promote tiles for these areas by low initial cost or other marketing tools. This way the company can create new innovative application of tiles and expand the tile market.

4. Which scheme stands most attractive ?

Preffered schemes by Tile dealers


Discounts Free samples Extra Foreign travel Others

3%

9%

3%

22% 63%

Interpretation
Clearly discounts are the most preferred scheme for dealers, which earn them more profit. Free samples are also preferred by dealers, which they also display in their showrooms to show more variety to the customers.

5. The margin of Kajaria tiles is?

Margin of Kajaria Tiles


Low Limited Satisfactory

24% 41%

35%

Interpretation
Most of the dealers and associate dealers find the margin in Kajaria and overall tile industry to be low or limited. The margin further reduces for dealers who have to purchase from other dealers in order to sell Kajaria tiles on customer demand.

6. Total no. of boxes sold per month (approx.)?

Total no. of boxes sold by dealers / month


<1000 1000 1500 2000 2500 >2500

11% 33% 11%

4% 19%

22%

Interpretation
One third of the tile dealers sell more than 2500 boxes of tiles , and most of them are not Kajaria dealers. So the market shows a lot of potential, where the company should try to make these dealers sell Kajaria tiles.

7. Total no. of boxes of Kajaria sold per month (approx.)?

No. of Kajaria tiles Boxes sold / month


<1000 1000 1500 2000 2500 >2500

11% 44%

22%

11% 6% 6%

Interpretation
A large no. of dealers and associate dealers of Kajaria sell above 2500 boxes of tiles, which is very beneficial for the company. But there are many small players in dealership, on which the company needs to focus in order to capture a bigger market share.

8. Which size (in mm.) does consumer prefers the most?

Most preferred Tile size


200*200 300*200 250*400 300*450 300*600

3% 25% 30%

6% 36%

Interpretation
The most preferred tile size in the market is 300*450 mm , so the company should take care that it has wide variety in this size. Not far behind is the size 300*200, 300*600, so the company should focus on these standard sizes preferred by the customers.

9. Promotional schemes adopted by the company are beneficial for dealers and associate dealers?

Are promotional schemes beneficial for dealers


Yes No

11%

89%

Interpretation
According to the survey, a large number of dealers seems to be satisfied with the promotional schemes of the company. The company should make efforts to maintain this high number as the dealer forms an important link in the selling of tiles , and should be kept satisfied as far as possible.

SWOT Analysis

SWOT Analysis of Kajaria Tiles

STRENGTH
Consistent growth of 12-15 percent inspite of slowdown in economy. The Indian ceramic export market is rising at the rate of 15 percent per annum. The top management enjoys a tile industry experience of more than two decades. Kajaria is Indias largest ceramic floor and wall tile manufacturer; its expanded Capacity and improved capacity utilisation provides attractive economies of scale. The manufacturing process is fully automated and mechanised. Kajaria is present across the entire value chain, from glazed ceramic tiles to Polished porcelain tiles to glazed porcelain tiles. Kajarias R&D team creates around 8-10 designs every month and was credited with a number of pioneering initiatives Its showroom display wide variety of concepts. Kajaria is a well known and established brand for years known for its quality and variety. Kajarias multi-layered distribution channel (owned showrooms and dealer/sub dealer network) in India and 20 nation footprint enhance reach.
Kajarias institutional clients in India, comprising DLF, Unitech, Mantri Group and Raheja Developers, among others, drive product off take.

WEAKNESS
Comparatively higher price. Colour difference in same box. Broken tiles in some boxes. Company itself a competitor of its own dealers, esp. In bigger projects.

Not much importance given on brand building and network thus creating hindrance for export growth. Lack of print media ad about availability of dealer.

OPPORTUNITY
The construction and Housing Boom to provide bolstering demand for ceramic tiles. It can tie up with housing finance companies private as well as government. It should open more showrooms to give thrust to display concept. Concept of selling through retail outlets. Low per capita consumption (0.15 sq.mt. p.a.) as compared to developed nations, so lot of potential remains untapped in the existing markets. The untapped rural market supported by a strong growth witnessed by Indian agriculture provides tremendous potential for the domestic ceramic manufacturers.

THREATS
Freight, supply of power and gas remains the key cost-related issues impacting the industry. Agitated dealers can distort the perception of individual customers. Competitors have lower price eg. Tiles from Gujarat. Competition following push strategy providing the higher commissions to intermediaries. Regional or local players may be dangerous for the company. Basic Customs Duty on import of ceramic tiles from China and raw materials imported from abroad should be corrected to prevent dumping of tiles from China.

RECOMANDATION & SUGGESTION

Suggestions

The margin policy for dealers should be uniform so that small dealers can also benefit the same as big dealers. Providing panel as tile sample in place of providing tiles sample in lose. The company should provide double sided display panel as panel are easier to manage as compared to lo se tiles. It will also save space and at the same time panel will always be in display so that the loss (in terms of breaking the tiles) while taking out the tiles for customers, can be curtailed.

As the company is in retail business also, It should give discounts, gifts , schemes directly to customers and pass on the benefit directly to them esp. At the time of festivals or on purchase of a particular type of design or volume etc. But especial care should be taken in this case for dealers, so they dont feel cheated or in loss.

Some dealers complain that the company launches new designs very soon, so their is a dead stock problem for dealers. So there should be sufficient time given to the dealers to clear the stock before forcing him to buy more stock.

Also the approvals for the project seems to be time consuming , so higher management should try to speed up the process by giving some authority and decision making power at lower levels or appointing an officer exclusively for project approvals.

Care should be taken about the complaints of colour and quality variation in two boxes of same tiles. Packaging seems to be improved as compared to other tiles in the market such as Asian. This will not only make material handling easier at dealer end but also at consumer end.

Also their seems to be a gap between the products, which gives opportunity to local tiles to cover that gap. So the company should try to give a wider range of products at various price tags.

The company should try to enter into beneficial ties up with private housing finance company. It should give importance to brand building and network for enhancing export growth. Also the company should focus on brand building and advertisement, which will again help in creating its presence in international market.

The company should also concentrate on other areas of the building apart from kitchen and bathrooms and should try to promote tiles for these areas by low initial cost or other marketing tools. This way the company can create new innovative application of tiles and expand the tile market.

It may introduce a specific dedicated team to look after the overall brand equity. They will ensure that all showrooms and dealer display centres were in sync with the Kajaria profile. Also they will look after the external packing material which creates an eye on look-an feel, resulting in a holistic branding approach.

To grow its institutional business, the company should organize more interactions with architects, developers and government agencies at its dealer outlets. This would serve a dual purpose: it would enable the company to acquire an insight into evolving preferences of some of the most prominent and trend- influencing architects; on the other hand, it helped the company cater to their evolving preferences.

CONCLUSION

Conclusions

The ceramic tile industry is characterized by intense competition, low entry barriers and high working capital requirements. Kajaria is a market leader of ceramic tile industry , but in order to maintain this position it has to be proactively conscious for market needs. Kajaria Ceramics is the largest manufacturer of ceramics tiles in India. Kajaria clearly emerges out to be most preferred choice of customers, with closest competition with Somany tiles. Kajaria should include customers feedback, so that company can change range of products and increase quality of product in accordance with customer taste and preferences.

In order to build a strong selling network Kajaria needs to take care of the issues of its dealers to maintain high sales to end users. The quality and colour variation issues in two boxes of same tiles can hamper the brand image of the company if not taken seriously. The low per-capita consumption of ceramic tiles in India, which is currently around 0.5 sq. m per person as compared to 2.0 sq. m per person in countries, like Malaysia, Brazil and China, offers huge growth potential.

BIBLOGRAPHY

Books Marketing management kotler Philip Research methodology Kothari C.R Websites www.Kajariaceramics.com www.kajariaworld.com www.hrjohnsonindia.com www.bellceramics.com www.google.com

Others
Kajarias catalogue

News paper
Times of India Business standard

ANNEXURE

Name of the key person: _____________________________________________ Name of the organisation: ____________________________________________ Office address: _____________________________________________________ Contact No.: _______________________________________________________

8.. According to you what does the consumer prefers before buying tiles? (a) Brand (b) Cost (c) Quality (d) Variety (e) Delivery

9.While buying which brand consumer prefers the most? (a) Kajaria (b) Somany (c) Johnson (d) Bell (e) Nitco

10. For which portion of the house consumer prefers tiles? (a) Room (b) Kitchen (c) Bathroom (d) Front elevation (e) Roof (f) Parking

11. Which scheme stands most attractive? (a) Discounts (b) 12. The margin of Kajaria tiles is? (a) Low (b) Limited (c) Satisfactory (d) High (b) Free samples (c) Extra (d) Foreign travel (e) Others

13. Total no. of boxes sold per month (approx.)? (a) 1000 (b) 1500 (c) 2000 (d) 2500 (e) other ___________

14. Total no. of boxes of Kajaria sold per month (approx.)?

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15. Which size (in mm.) does consumer prefers the most? (a) 200*200 (b) 300*200 (c) 250*400 (d) 300*450 (e) 300*600 (f)150*600

16. Promotional schemes adopted by the company are beneficial for dealers and associate dealers? (a) Yes (b) No

17. Any suggestion for tiles industries for future prospects? ______________________________________________________________ ______________________________________________________________