Competitive
advantage
Across the value chain:
Kajaria footprint across the tile value chain
allows it to address a wide opportunity matrix.
Wide distribution:
Kajaria’s wide and deep distribution network (more
than 900 dealers) serviced more than 10,000 sales points across the
country - metros to Tier-III markets and small towns. This strategy made
it possible to market more than 70% of its output to retail consumers.
Joint venture:
Kajaria adopted the joint-venture capacity creation
model resulting in a pan-India manufacturing presence. It acquired a
majority stake in unbranded regional players, which provided it access
to the output from these facilities. This strengthened the Company’s
sectoral competitiveness as revenue accretion started immediately and
made it possible to distribute products faster across India.
Wide product range:
Kajaria offered customers products at every
price point (
`
200 per sqm to
`
1800 per sqm) through the widest array of
designs, finishes and sizes.
Brand acceptance:
Kajaria institutionalised the cash-and-carry sales
model for its dealers, which enhanced liquidity. Besides its ability to
create popular products moderated inventory.
Liquidity:
Kajaria’s financial muscle reflected in its low gearing at 0.41
(March 31, 2014) and an industry-beating working capital cycle of only
25 days of turnover equivalent.
14
Kajaria Ceramics Limited
