Tiles, Ceramics, Sanitaryware Companies

31 Oct 2017 CW Team

CW profiles the top companies in this category... Largest Tiles, Ceramics, Sanitaryware Company H&R Johnson (Prism Cement) Prism Cement is one of the leading integrated building material providers in India. The company has a varied range of products including cement, ready-mix concrete to sanitaryware. Its business is divided into three broad categories, of which cement contributes 43 per cent, H&R Johnson Tiles (HRJ) accounts to 34 per cent, and 23 per cent comes from ready-mix concrete. The HRJ division consists of sanitaryware, bath fittings, modular kitchens and construction chemicals. What's more, the company's HRJ division is a pioneer of ceramic tiles in India. It has 11 manufacturing plants (a combination of own and JVs) with a capacity of around 61 mmtpa. The asset light business model through seven manufacturing JVs contribute to 70 per cent of the capacity. In FY2017, the company's revenue grew by 8 per cent to Rs 1,009 crore and its net profit grew by 21 per cent to Rs 101 crore. The revenue has grown by 110 per cent in FY2017 over FY2012 and profitability has grown by 243 per cent in FY2017. Fastest Tiles, Ceramics, Sanitaryware Company 1st Rank Kajaria Ceramics Kajaria Ceramics is the largest manufacturer of ceramic and vitrified tiles in India. The company's portfolio consists of tiles, sanitaryware and faucets. Being among the market leaders, it has significantly increased its capacity from 30.6 million sq m in FY11 to 68.6 million sq m in FY17. This was driven mainly through the acquisition of a stake in Cosa, Soriso, Vennar and Jaxx, and expansion of existing facilities. On the capacity expansion front, the company is likely to expand its tile manufacturing capacity of Gailpur plant by 3.5 million sq m to 22 million sq m. Further, it is also undergoing a greenfield expansion of 5 million sq m of glazed vitrified tiles, with which, the capacity is expected to increase to 77.1 million sq m. With the government's focus on affordable housing, demand in the real estate sector is set to pick up. In this background, Kajaria Ceramics is expected to be among the biggest beneficiaries. Currently, the company is increasing its concentration towards high value polished and glazed vitrified tiles as demand is picking up at a faster pace. Apart from this, the company's other business segments, ie, sanitaryware and faucets, which has a manufacturing capacity of 5.40 lakh is expected to increase by 1.20 lakh. For FY2017, the company's revenue grew by 11 per cent to Rs 2,720 crore and its net profit grew by 15 per cent of Rs 270 crore. 2nd Rank Cera Sanitaryware Cera Sanitaryware is one of the leading manufacturers of sanitaryware and faucets in India. In the sanitaryware space, the company's market share stands at 23 per cent. Sanitaryware contributes to 60 per cent of its overall revenue, followed by 20 per cent from faucets and 13 per cent from tiles. While the company manufactures sanitaryware, it outsources the manufacturing of bath and faucets. In the last five years, Cera Sanitaryware has recorded a CAGR of 19 per cent, which is above the industry growth of 12 per cent. In order to grow its business, Cera Sanitaryware is expanding into new markets. The company is likely to scale up its production capacity from the current 75,000 pieces per month at its new faucet plant at Kadi. It also has plans to increase the sanitaryware production from 20 lakh pieces to 27 lakh pieces per annum to make one of the largest manufacturing plants in the sanitaryware space. Aiming at rapid growth, the company is planning to tap the premium segment and has acquired a tiles manufacturing plant in south India through a JV with Anjani Tiles. As the production from the acquired plant has started in FY17, it is expected to augment growth for the company. For FY2017, Cera Sanitaryware's revenue grew by 8 per cent to Rs 1,009 crore and its net profit grew by 21 per cent to Rs 101 crore. With its consistent growth over the past five years, its five-year top-line CAGR is 33 per cent while the five-year bottom-line CAGR is 33.34 per cent. 3rd Rank Somany Ceramics Somany Ceramics is the second largest tile player in the industry with a market share of 6.6 per cent. A complete decor solution provider, the company offers ceramics tiles to sanitaryware. It derives 42 per cent from its own manufacturing, 50 per cent from JV, and outsourcing accounts for 8 per cent. Through JV, the company has improved its production capacity from 19.1 million sq m in FY11 to 60.3 million sq m in FY17 for the tile segment. It has increased its capacity in Kassear plant by 2.5 million sq m and its sanitaryware capacity to 11.5 lakh pieces. This, along with government initiatives such as the Swachh Bharat Abhiyaan and Housing for All, is expected to create demand for tiles and sanitaryware products. In FY2017, the company's revenue grew by 6 per cent to Rs 1,840 crore and its net profit grew by 41 per cent at Rs 86 crore. The company's five-year CAGR for revenue stands at 20 per cent and five-year CAGR for bottom-line is at 36 per cent.