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Mitigation:
Even as the demand is
expected to increase, supply side
competition is expected to remain
stable which augurs well for Kajaria.
This optimism stems from the following
realities
One, the Government has imposed an anti-
dumping duty on Chinese vitrified tiles for
the next 5 years (valid up to 2022).
Two, the roll-out of GST is expected
to create a level playing field between
the informal sector and the organised/
branded players – minimising competition
from unorganised players.
Moreover, Brand ‘Kajaria’ today is an
aspiration – creating a consumer pull for
the Company’s products. The Company’s
far-reaching branding and advertisement
initiatives at the national level have
significantly widened the brand appeal
among a larger section of the Indian
populous and holds the potential of
increasing footfalls at its dealer outlets.
Mitigation:
The Company has adopted a
two-pronged strategy to improve business
profitability. One the focus on large
format and value-added tiles is working to
improve business margins – the Company
has a strong pipeline of such niche tiles
which are to be launched in 2017-18.
Two, cost optimisation is a continuous
journey at Kajaria. The Company’s
relentless pursuit on eliminating
wastages and optimising power and fuel
consumption facilitates in optimising
operational costs.
Intensifying competition in the Indian tile space could
impact business prospects?
What is the Company’s strategy on improving business
profitability?
CAPACITY RISK
PROFITABILITY RISK
031
ANNUAL
REPORT
20
16-17
KAJARIA
CERAMICS
CORPORATE
OVERVIEW
MANAGEMENT
REPORTS
FINANCIAL
STATEMENTS