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Mitigation:
The need for housing and
the aspiration for better housing is an
aspiration for every Indian which is
growing faster than ever before. This is
owing to increasing earning propensity
and hence disposable income in the
hands of the individual. This results in
new and replacement demand for tiles. In
addition, Government impetus to housing
through investment inducing policies,
reducing interest rates for housing loans,
upward mobility aspiration of the Indian
youth and increasing nuclearisation is
expected to catalyse demand for housing
going forward. According to the White
Paper - Indian Housing Industry – by
research and consultancy firm RNCOS,
the shortage of urban housing across the
country could increase to an estimated
3.41 crore units by 2022, mainly on the
back of a demand-supply gap and rising
levels of income among the working class
seeking to purchase houses. As a result,
the management is confident of attaining
the historical growth momentum over the
coming years.
Mitigation:
To meet the emerging
demand, the Company is adding
3.5 MSM ceramic wall and floor tile
manufacturing capacity at its Gailpur
unit. It is also putting up a 5 MSM GVT
manufacturing unit through its joint
venture partner Floera Ceramic Pvt Ltd in
South India which is expected to come
on stream in the second half of FY19.
In keeping with the Company’s target
of reaching 100 MSM capacity by 2020
(68.90 MSM as on March 31, 2017),
the Company will undertake further
Greenfield, brownfield and inorganic
initiatives over the next few years to
scale up its multi-region manufacturing
capability.
Is there enough opportunity to go back to the historical
double digit growth?
Does the Company have capacity to meet demand
expectations over the coming years?
GROWTH RISK
COMPETITION RISK
030