OJASWINI GUPTA (JIML-11-104)
PRESENTED BY:
PANKHURI SARAN (JIML-11-110)
POORVI CHIB (JIML-11-111)
PRABHAT SINGH (JIML-11-113)
PRABHJOT SINGH (JIML-11-114)
Incorporated in 1985.
India’s largest ceramics floor and wall tiles manufacturing
company.
Promoted by Mr. Ashok Kumar Kajaria.
It offers approx. 500 designs
CERAMIC POLISHED VITRIFIED
WALL AND VITRIFIED PAVING
FLOOR TILES TILES TILES
SANITARY
WOODEN
AND
FLOORING
FITTINGS
Revenue- increase in revenue in last three financial
year.
impact of extended capacity.
increase in domestic sale & exports.
Operational Cost- also growing each year.
increased operational scale
hiked input cost
rupee depriciation
jump in power & fuel cost.
increase labour for expended operational scale.
Interest- interest liability increase over the year despite
a decline in total debt position.
loan taken for expansion in 2010-11 are charged in P\L
account of 2011-12.
due to foreign exchange loss
Interest rate hike during years.
Taxation- increase in tax due to increase in profit
before tax.
Short term solvency of the company is low
Company adopts aggressive current asset policy.
Fixed asset are able to cover long term debt obligation.
Net worth as comparison to capital employed is
increasing.
Long tern bowering is decreasing as company
deployed business surplus.
Current • Lower than the ideal ratio
• Short term solvency of the company is low
Ratio
• Used to test the short term liquidity
Quick Ratio • Lower than the bench mark
Debt Equity • Favorable for the company
• Lower the ratio higher is the degree of
Ratio protection to lenders
Fixed Assets • Good in all three years
Coverage Ratio • Able to cover its debt obligations
Return on Sale, • Increasing ROS, Operational Efficiency is good
Return on Equity, • Increasing ROE, Able to generate profit by
Return on investors money
• High ROI – Better for the company
Investment
• Low Raw Material, W.I.P. , Finished Goods
Holding Period, Average Collection Period
Activity Ratios • High Average Collection Period – Taking time to
pay to the creditors.
31stMarch • Cash from Operation 784
• Utilized for proceeds from short and long term borrowings
, finance dividends and purchasing assets
2012 • Negative Cash from Investing and Financing Activities
• Net increase in cash and cash equivalent items
• Cash flow from operations 1583.5
31stMarch • Used to finance dividends and assets
• Negative Investing Activities and Positive
2011 Financing Activities
• Net Decrease in Cash and Cash Equivalent Items
• Cash from Operations 1077.2
31stMarch • Utilized for paying dividends, proceed from
borrowings and fixed assets purchases.
2010 • Negative Investing and Financing Activities.
• Net Decrease in cash and cash equivalent items .
1. CREDIT RATING: ICRA rated A—
2. COMPETITION: Major competitors are-
1. Johnson
2. Bell
3. Somany Pilkingston’s Ltd.
4. Sun Earth
World Ranking in Ceramic Tile Industry is 5TH.
3. AWARDS AND RECOGNITION:
1. “SUPER BRAND” 6th consecutive time
2. READER’S DIGEST TRUSTED BRAND GOLD
AWARD for the year 2010, 2011 and 2012.
3. “INDIAN GREEN BUILDING COUNCIL” - eco
friendly process used in manufacturing.
1. TECHNICAL COLLABORATIONS:
Ceramic Glaze (Wall and Floor)- TODAGRES, SPAIN
TILES
2. TECHNICAL KNOW – HOW
3. ENVIRONMENTAL CONCERN : Certifications
across all its plants:
ISO 9001-2008- Quality Management System
OHSAS 18001- Occupational Health & Safety
SA-8000- For Commitment to Society
ISO 22000- Food Safety Management System
ISO 50001- For Energy Management System
4. PLANT LAYOUT
5. PRODUCTION CAPACITY:
PLANT CERAMIC VITRIFIED TOTAL
TILES TILES
Sikandrabad (UP) 3.2 5 8.2
Gailpur (Rajasthan) 14.1 6 20.1
Morbi (Gujarat)* 4.6 3.1 7.7
Vijaywada (Andhra 2.3 - 2.3
Pradesh)*
MARKET REPUTATION:
One of the Leading players In organized segment of tiles
industry in India
High volume exporter of vitrified tiles and glazed tiles
RETAIL SEGMENT DEMAND:
KAJARIA-70% and Industry Bench Mark- 50%
Mushrooming Middle Class
Rising population
Demographics
Retail Consumption
Replacement of Market
Disposable Income
INSTITUTIONAL SEGMENT DEMAND:
Organized sector playing a dominant role in realty creation
Leveraging long-standing business relations with branded
players.
Airport modernization
Commercial real space
Organized retail
Hospitality sector
Healthcare sector
Urbanization
COMPETENCE:
Widest and fast growing Product Basket.
Intensive Distribution Network
15% market share of organized tile industry.
STRENGTHS
Growth of 12-15 percent in spite of slowdown in economy
Kajaria is India’s largest ceramic floor and wall tile
manufacturer.
R&D team creates around 8-10 designs every month
Kajaria’s multi-layered distribution channel
WEAKNESSES
o Low per capita consumption (0.15 sq.mt. p.a.) as compared
to developed nations
o Stiff competition within the organized sector
o The tiles industry in India was facing very competitive
conditions
We recommend a buy in the stock of Kajaria Ceramics from
a short-term perspective.
Kajaria Ceramics Forms Jv With Vennar Ceramics at
Vijaywada, A.P. – By investing a capital worth Rs 13.65
crore towards fresh equity shares, acquired 51% stake .
