Showing posts with label Business Model Tile Industry. Show all posts
Showing posts with label Business Model Tile Industry. Show all posts

Monday, January 8, 2018

India Tile Market Research Report to 2022: Ken Research

How the India Tiles Market is positioned?
India tiles market grew at a five year CAGR of ~% during period FY'2012-2017. The revenue of the industry has shown an increase from INR ~ Crore in the FY’2012 to INR ~ Crore in the FY’2017. Earlier, people used cemented flooring and stones in their houses and other commercial spaces. The urge for the rise in standard of living and modernization implied the introduction of tiles in the Indian market. Initially the key customers in the segment included high end residential construction, aviation, education and healthcare. With the passage of time and development in technology it has become more economical and now they are used on walls and roofs also. The major growth driver of the India Tiles Industry is the infrastructural growth. The market is fragmented between few organised and many unorganised family owned businesses.
The easier credit accessibility and tax benefits for getting housing loans led to increase in the number of new households in India. Rise of urbanization in India and urge of better lifestyle and job opportunities created demand for well finished houses. Shift in consumer preferences to demand for large size & better looking tiles due to easy availability and affordability of tiles has also boomed the India Tiles Market. The government has also played a major role in the mushrooming demand for tiles by initiating policies aimed at achieving growth in urban and rural sectors in terms of infrastructural growth. India tile market is expected to register a constant growth in demand owing to rising demand for good quality real estate in commercial and residential sector. All major companies have positive outlook about the market in the near future and are planning to expand their manufacturing and distribution network in the near future.
Segmentation by Type of Tile
Floor tile constitute a major market share (~ %) on account of larger area availability for application. Most of the newly constructed houses and commercial complexes are using tiles for flooring due to ease of installation and easy availability in variety of forms based on the requirement of individual product. The share of wall tiles is low generating only ~% of the revenue on account easy availability of substitutes including wallpapers, paints and others.
Segmentation by Type of Material
Revenue share from vitrified tiles accounted for ~ % of the market share by value. These tiles have better resistance to damage as they less brittle compared to ceramic tiles. Revenue share from ceramic tiles accounted for ~ %of the market share by value. The lower share in value terms is in account of being less expensive. Moreover, these tiles are brittle in nature so cannot be applied in commercial spaces as they are unable to without high footfall.
Segmentation by Market Organization
Revenue share for unorganised players accounted for ~ % of the market share by value. The price differential created by the unorganised players attracts price sensitive customers providing a higher revenue share by offering products at a lower cost. Revenue share for organised players accounted for ~ % of the market share by value. They offer products at a higher cost thus have lower revenue shares as they fail to attract customers that are price sensitive.
Segmentation by New-Order and Replacement Demand
The new order demand for tiles is high with a share of ~ % on account of an increase in the number of new residential units and increase in the commercial space from ~ thousand square meter in FY’ 2011 to ~ thousand square meter in FY’ 2017. The replacement demand for tiles has a low share of ~ % on account of a longer replacement cycle with a life span of tiles being ~ years for medium quality tiles and ~ years for high durable quality tiles.
Snapshot on roof Tile Market
The India roof tiles market is broadly classified into two segments i.e. handmade tiles and machine made tiles. According to the census 2011, 40% of houses were constructed using the traditional roofing materials. Traditional clay tiles used to be the first choice for roofing solutions to homes but since the introduction of concrete tiles that come in various colors and are less expensive (as compared to clay tiles), the market has been taken over by the concrete tiles in India. Roof tiles add a style statement to the roofs and can transform them into masterpieces. Roof tiles have reflective properties, which help to increase the efficiency of heating and cooling systems. The roof tiles are delicate and fragile in nature they may tend to break due to external damages and heavy winds or hailstorms. The major players in organized sector include Kajaria, H & R Johnson India, Orient Bell Tiles Ltd and Somany Ceramics. Some of the other players in this sector include Kap India Tiles, Monier Roofing Pvt. Ltd., Pionnier Roofing Co. and Wienerberger India Pvt. Ltd. With infrastructure and industrial boom being the primary demand driver for this sector, increasing investment in infrastructure development by the Indian Government on account of introduction of policies such as Smart cities, Housing for all by 2022 and Swachh Bharat Mission will drive the demand for roofing tiles in India in the near future.
Snapshot on India Stone Flooring Market
Stone flooring is a growing segment in India flooring market. Variety of stones is mined in India for domestic consumption and export. Marble and granite are two most commonly used stones in construction. Rajasthan is a major state where marble is mined for further processing as flooring stone. Granite is majorly mined in Madhya Pradesh, Orissa, Tamil Nadu, Karnataka, Jharkhand, Chhattisgarh, Rajasthan and Andhra Pradesh.
Revenue from sale of granite and marble stone for flooring was estimated at INR ~ crore. Market for granite was majorly export dominated where as market for marble was majorly for domestic consumption.
Top 3 export destinations for marble export were China, USA and Norway. Top export destinations for granite export in FY’2017 were Saudi Arabia (INR ~ crore) USA (INR ~ crore), Germany (INR ~ crore), Iraq (INR ~ crore).
Market for marbles for flooring in India is very fragmented with very few players having Pan India presence. It is expected that revenue generation from sale of stones (marble and granite) for building purpose will generate INR ~ crore in FY’2022. GST, environmental regulation and easy application of tile and other flooring substitute are some key factors that may impact the demand in future. Stone flooring especially using marbles is still the symbol for exotic and opulence.
Snapshot on India Wood Flooring Market
The present wooden flooring market in India is predominantly in the commercial sector accounting for more than half of the consumption with the remaining share by the residential sector.  Majority of the demand comes in renovations with minor contribution coming from new construction activity. Products sale is mainly driven by the recommendation from architects, installation personnel, and contractors. Pergo, Power Dekor Group, Classen, Kronotex, TEKA, and Ekowood, Greenply (Floormax), Greenlam (Mikasa) are some key wood flooring companies selling their product in India. It is expected that market will more than double in next five years with rise in dominance of Indian companies such as Green lam and Greenply. Companies operating in this segment plan to increase the brand’s visibility using innovative marketing techniques and improving distribution network and product visibility.
Future Outlook to India Tile Market
By Revenue: The India wall and floor tile market had witnessed a positive growth rate past five years and the market is anticipated to grow at a CAGR of ~% during the forecast period, FY’2018-2022. The growth in the market during the forecast period will be attributed to factors such as rising number of residential units and commercial spaces due to migration of rural people to urban areas, the increase in government initiatives towards infrastructural growth, increase in the personal disposable income in India and anticipated innovations in the tiles industry. 
By Type of Tile: Demand for floor tiles is expected to register constant increase and may account for ~% of the total tile sales in FY’2022 generating revenue of INR ~ crore. All major companies are expanding their production capacity by expanding existing facilities or through acquisitions and joint ventures. Wall tiles expected to find increased use in kitchens and washrooms where walls need protection from continuous exposure to wet and moist surrounding.
Companies Cited in the Report
List of Companies                          Companies Covered in the Report
Kajaria
HR Johnson
Somany
Nitco
Orient Bell                                Major Players
RAK ceramics
Sun heart
Vermora
Murudeshwar
Green Ply
Greenlam
Key Topics Covered in the Report
Production Tiles in India
Tile Export from India
Ceramic Tiles Growth India
Major Tile Producers in India
Ceramic Tiles Industry in India
Tile Market Size Forecast
India Ceramic Tile Market
India Wooden Flooring Market
Tile Manufacturing Hub in India
For more information on the research report, refer to below link:
Related Reports by Ken Research
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Ken Research
Ankur Gupta, Head Marketing & Communications
+91-124-4230204