PPT On Kajaria

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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 .

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