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We grew business,
profits and profitability,
which in our opinion
is a significant
achievement of the
entire Kajaria team.
legislation when introduced will prove
to be a game-changer for India’s
organised players. For two important
reasons
One, GST promises to create a
level playing field between the
informal sector and the organised/
branded players. And as consumer
affordability and consequently
aspiration are multiplying, we expect
the tile demand to shift towards
branded products.
Two, we believe that following the
GST implementation, the sector’s
supply chain will strengthen. For
example, trucks earlier needed 5-6
days of travel time to get from our
Gailpur facility to Benaras; we will
now be able to cover the distance in
3 days. This acceleration will make
it possible for our inventory turns to
increase and our raw material-to-
receivables working capital cycle to
shorten, strengthening our financial
efficiency and profitability.
Housing:
In 2017, the government
provided infrastructure status to
the country’s Affordable Housing
segment. This is a significant step
that should transform the prospects
of the real estate sector, home buyers
and material providers. According
to CLSA, Prime Minister’s drive to
bring homes to the country’s 1.3
billion people, rising incomes and
the best affordability in two decades
will unleash a US$1.3 trillion wave
of investment in housing. The firm
expects 60 million new homes to be
built between 2018 and 2024. While
the affordable segment is expected
to rise almost 70% to 10.5 million
annually by 2024, increase in the
premium segment is stated to be
about 33%.
RERA:
This legislation which came
into force on May 1, 2017, promises
to protect the home purchaser. It
puts greater accountability on the
developers in terms of disclosure,
Ashok Kajaria
Chairman & Mg. Director
011
ANNUAL
REPORT
20
16-17
KAJARIA
CERAMICS
CORPORATE
OVERVIEW
MANAGEMENT
REPORTS
FINANCIAL
STATEMENTS