Survey on Dealer`s and Distribution Network at Asian Granito India Limited

Summer Internship Report

Survey on Dealers and Distribution Network at Asian Granito
India Limited

Submitted by

Parimal Kaila (1-18-089)

In Partial Fulfilment of

Post-Graduation Diploma in Management

(2018-2020)

Under the faculty Guidance of

Prof. Naval Bhargava

International Business

Under the Industry Guidance of

Mr. Prishit Shah

Assistant General Manager, AGL (Gujarat)

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 Survey on Dealer`s and Distribution Network at Asian Granito India Limited

Undertaking

I, Parimal Kaila the author of the SIP titled Survey on Dealer`s and Distribution
Network at Asian Granito India Limited, hereby declare that this is an independent work
of mine carried out towards partial fulfilment of the requirements for the award of the
PGDM/PGDM-C diploma by Shanti Business School, Ahmedabad, India. All views and
opinions expressed in this report are my mine, and do not necessarily represent those of the
institute and Asian Granito India Limited.

I declare that this submitted work is done by me to the best of my knowledge; no such
work has been submitted by any other person for the award of degree.

I also declare that all the information collected from various primary and secondary
sources has been duly acknowledged in this project report.

Signature of the Student:

Name of student: Parimal Kaila
Enrolment no.: 1-18-89
Date:
Place: Ahmedabad

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Certificate

This is to certify that the Summer Internship Project (SIP) titled “Survey on Dealer`s
and Distribution Network at Asian Granito India Limited” has been submitted by
Parimal Kaila towards partial fulfilment of the requirements for the award of
PGDM/PGDM-C diploma at Shanti Business School and has been carried out under my/our
supervision.

Guide Signature:

Guide Name: Pro. Naval Bhargava

Date:

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Acknowledgements

I Parimal Kaila, would like to take this opportunity to express my deepest gratitude to
my faculty guide Pro. Naval Bhargava, for the continuous support and follow up during the
entire process of SIP without which the successful completion of SIP would not have been
possible.

I would also like to express my sincere gratitude to my industry guide Mr. Prishit Shah
for his valuable support and guidance at the organisation and thus helping me in the
successful completion of the SIP.

I am also grateful to our institute Shanti Business School (SBS) and its director Dr.
Neha Sharma for providing us with this wonderful opportunity to work in the corporate sector
and thus providing us with the first-hand experience to understand the corporate sector by
being a part of it.

Finally, I would like to thank the placement team at SBS Mr. Kartik Iyer and Ms.
Riddhima Mukul for working tirelessly to place us in our desired organisation with good
project.

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Preface

Project report plays an important role as a part of the curriculum of PGDM in shanti
business school. Consequent report on the industry allowed studying us the real business
environment. This practical training in the field of PGDM program develops the feeling of
awareness in management student about the difficulties and challenges of the business world.
Only theoretical knowledge does not impart complete education. It must be accompanied
with practical experience to add meaning to education. Here we have tried our level best to
represent our project report and explain our understanding level through it.

In PGDM Theory of any subject it is important but without its practical knowledge it
becomes useless particularly for the Management Students. As a student of the Business
Administration, we have studied many theories and concepts in the classroom, but only after
taking up this project work, we have experienced &understood these Management theories &
practices in its fullest sense, which plays a very vital role in business field today. The
knowledge of management is incomplete without knowing the practical application of the
theories studied.

Management today is must for day-to-day life. Management is the integral part of the
business. In this world, all things need proper management for its success. Business without
proper management is like a castle of sand built on seashore. Even individuals need proper
management for running their life smoothly. Only theoretical knowledge is not enough in
PGDM along with one needs some practical exposure in the corporate world also.

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Executive Summary

The AGL is the brainchild of two entrepreneurs, whose dream was to create the
world’s most sustainable building materials company. Their inestimable experience together
with a young and dynamic management team has created a formidable entity that is growing
at an amazing pace.

Established in the year 2000, the AGL has emerged as one of the largest ceramic
companies of India in a short span of 18 years. Its leadership is marked by many successful
challenges our incessant pursuit of excellence. Today it has emerged as one of India’s largest
groups, with a global footprint across more than 58 countries. Its capacity has grown 40-fold
in a span of just 18 years, it is India’s fastest growing Ceramic Wall & Floor Tile, Glazed
Vitrified Tiles, Polished Vitrified Tiles, Composite Marble and Quartz Company and among
the world’s 50 most profitable Ceramic tile Companies.

We have also focused on the different designs of tiles, quality of tiles, issues which are
facing by dealers and distributors during our internship period at AGL. We have done many
surveys and gather information about all the dealers and distributors under Ahmedabad area
who are facing problems with AGL tiles. After that we made an analysis on it an suggest
solutions to AGL to improve it. It all thing discussed in the report.

We have also learnt marketing and sales at AGL display centre at Gota. We learn about
how make deal, deal closing techniques and how to convince customer or dealer who visits
display centre for buying tiles. We have also taken various feedback surveys of dealers and
distributors and also builders and architects. Also explore government infrastructure projects
where AGL supply their ceramic product.

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Acronyms

SBS: Shanti Business School

AGL: Asian Granito India Limited

VTD: Vitrified Tiles

GVT: Glazed Vitrified Tiles

GST: Goods and Service Tax

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Contents
1. History of Ceramic Tiles .......................................................................................................... 11
2. Highlights................................................................................................................................. 12
3. Background .............................................................................................................................. 12
4. Overall Picture of the Industry ................................................................................................. 13
5. Where we stand and what we must do? ................................................................................... 14
6. Current Status of The Industry ................................................................................................. 14
7. Ceramic Tiles Industry Statistics ............................................................................................. 15
8. Top 10 Exporting Countries..................................................................................................... 16
9. Top 10 Consumption Countries ............................................................................................... 17
10. Top 10 Manufacturing Countries ............................................................................................. 17
11. Top 10 Countries with Highest per Capita Consumption ........................................................ 18
12. Market share of Industry .......................................................................................................... 18
13. Geographical Presence of Ceramic Tiles Industries In India ................................................... 19
14. Indicate Presence of Ceramic Tiles Industries in India ............................................................ 20
15. HSN Code for Ceramic Products ............................................................................................. 21
16. Ceramic Products Attracting 0% and 5% GST ........................................................................ 21
17. Ceramic Products Attracting 18% GST ................................................................................... 21
18. Ceramic Products Attracting 28% GST ................................................................................... 21
19. GST: Advantage organised players ......................................................................................... 22
20. Basic Production Procedure for Ceramic Tiles ........................................................................ 23
21. Application Overview – Ceramic Tiles Industry India ............................................................ 23
22. Growth Drivers – Ceramic Tiles Industry India ...................................................................... 24
23. Technology Trend in Ceramic Tiles Industry India ................................................................. 24
24. Application Overview – Sanitaryware Industry India ............................................................. 25
25. Key Challenges – Ceramic Tiles Industry India ...................................................................... 25
26. Technology Employed – Indian Ceramic Industry .................................................................. 26
27. Government Support – Indian Ceramic Industry ..................................................................... 26
28. Initiatives – Ceramic Cluster Improvement ............................................................................. 27
29. Initiatives for Energy Efficiency – Ceramic Industry India ..................................................... 27
30. Government Support – Ceramic Industry India ....................................................................... 28
31. Company History – Asian Granito India Limited .................................................................... 28
32. Introduction about Asian Granito India Limited...................................................................... 29

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33. Vison and Mission of Asian Granito India Limited ................................................................. 32

34. Values of Asian Granito India Limited .................................................................................... 33
35. Overview .................................................................................................................................. 34
36. Chairman’s Message ................................................................................................................ 35
37. Entrepreneurial Vision ............................................................................................................. 35
38. Business value drivers.............................................................................................................. 36
39. Market Share ............................................................................................................................ 38
40. Top Level Managing Persons of Company.............................................................................. 39
41. Key Management ..................................................................................................................... 41
42. Major Shareholders of Company ............................................................................................. 42
43. AGL: Key Milestones .............................................................................................................. 43
44. Growth of the Industry ............................................................................................................. 43
45. Current Status of the Industry .................................................................................................. 44
46. Anti-dumping duty ................................................................................................................... 45
47. Huge Export Opportunity ........................................................................................................ 46
48. AGL Total Capacity................................................................................................................. 47
49. Product Positioning Comparison ............................................................................................. 47
50. Sustained launch of new products............................................................................................ 48
51. Porter’s Five Force Model ....................................................................................................... 49
How AGL tiles can tackle the Threats of New Entrants ......................................................... 49
How AGL tiles can tackle Bargaining Power of the Suppliers ............................................... 50
How AGL tiles can tackle the Bargaining Power of Buyers ................................................... 50
Threats of Substitute Products or Services ....................................................................................... 50
How Top tiles company can tackle the Treat of Substitute Products / Services ................... 51
Rivalry among the Existing Competitors ........................................................................................... 51
How AGL TILES can tackle Intense Rivalry among the Existing Competitors in Retail
industry ........................................................................................................................................ 51
52. Corporate Social Responsibility .............................................................................................. 52
53. Products of Asian Granito India Limited ................................................................................. 53
54. Distribution Network ............................................................................................................... 54
55. Financial Performance and Global Impact............................................................................... 54
56. Company Owned display centres of Asian Granito India Limited .......................................... 55
57. Marketing Activities ................................................................................................................ 55
58. Competitors of Asian Granito India Limited ........................................................................... 56
59. Organizational Structure of Asian Granito India Limited........................................................ 57
60. Capital structure of Asian Granito India Limited .................................................................... 58
61. Financial ratios of Asian Granito India Limited ...................................................................... 59

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62. Technology .............................................................................................................................. 60

63. Moving to B2C ........................................................................................................................ 61
64. Strengthening its network—970 direct dealers ........................................................................ 61
65. Focus on Premiumisation......................................................................................................... 61
66. Export countries of Asian Granito India Limited .................................................................... 62
67. Awards and Recognitions ........................................................................................................ 63
68. AGL Achievements ................................................................................................................ 63
69. Regional Contacts .................................................................................................................... 65
70. SIP objective ............................................................................................................................ 66
71. Task to be performed ............................................................................................................... 66
72. Methodology of task ................................................................................................................ 67
73. Activities performed ................................................................................................................ 67
74. Lessons learned ........................................................................................................................ 67
75. Comprehensive Analysis of Industry ....................................................................................... 68
76. SWOT Analysis ....................................................................................................................... 69
77. Task and It`s methodology....................................................................................................... 71
78. Annexure .................................................................................................................................. 72
79. Bibliography ............................................................................................................................ 73

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History of Ceramic Tiles

It is believed that the first clay tiles were produced seven to eight thousand years ago in
the area now known as the Holy Land. Many sources independently verify that the actual
known history of Tiles (and the known usage of wall and floor tile coverings) can be traced
back as far as the fourth millennium BC (4000 BC) to Egypt.

In those days, in Egypt, tiles were used to decorate various houses. Clay bricks were
dried beneath the sun or baked, and the first glazes were blue in colour and were made from
copper, very exquisite!

During that period ceramics were also known to be found in Mesopotamia. These
ceramics bore decorations, which were white and blue striped and later possessed more
varied patterns and colours. Later on, in China too, the Great Centre of Ceramic Art, a fine,
white stoneware with the earliest Chinese glaze was produced during the Shang-Yin dynasty
(1523-1028 BC).

The usage and the art of making and decorating ceramic tiles had spread and by 900
A.D., decorative tiles had become widely used in Persia, Syria, Turkey and across North
Africa. As transport and communication developed, tile usage and its penetration in other
territories increased. Wars and territory take-overs caused this art to spread even faster.

The Romans introduced tile making in Western Europe as they occupied territories.
The Low Countries of Northern Europe somehow acquired the technology from Persia, while
the Moors brought African tiles with them when they invaded Iberia (Spain). It was aboard
the ships of Spanish conquistadors that decorative clay tiles found their way to the New
World, where they were used primarily to decorate the Churches of newly built missions.

By the end of the 12th century, use and manufacture of Ceramic Tiles had spread
across Italy and Spain and into the rest of Europe. Till that time they were mainly used to
decorate the floors of Cathedrals and Churches. The skill had eventually vanished from
Europe in the 16th century following the reformation. But the decorative wall tile art had
survived in Turkey and the Middle East and the Delft tiles art survived in Holland.

A form of tile making had also evolved among the natives of North and South America
at some point. The first decorative tiles to appear in Colonial North America were imported
from Northern Europe, mainly England the Brits having hijacked the technology from the
Dutch. The tiles were too expensive for utilitarian purposes in the Colonies and were found
almost exclusively in the homes of the wealthy.

Through the centuries, tile decoration was improved upon, as were methods of tile
manufacture. For example, during the Islamic period, all methods of tile decoration were
brought to perfection in Persia. Throughout the known world, in various countries and cities,
Ceramic tile production and decoration reached great heights. The tile mosaics of Spain and
Portugal, the floor tiles of Renaissance Italy, the faience’s of Antwerp, the development of
tile iconography in the Netherlands, and the Ceramic tiles of Germany are all prominent
landmarks in the history of Ceramic tile.

In the early days, the tiles were hand-made, each tile was hand-formed and hand-

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painted, thus each was a work of art in its own right. Ceramic tile was used almost
everywhere on walls, floors, ceilings, fireplaces, in murals, and as an exterior cladding on
buildings.

Today Ceramic tile throughout the world is not hand-made or hand-painted for the
most part. Automated manufacturing techniques are used and the human hand does not enter
into the picture until it is time to install the tile. They are used in an almost infinite number of
ways and you don’t have to consider yourself wealthy to own them. In commercial buildings,
where both beauty and durability are considerations, ceramic tiles will be found, particularly
in lobby areas and restrooms.

In fact most modern houses throughout use Ceramic tiles for their bathrooms and
kitchens and in every vital area of the premise. Ceramic tiles are also the choice of industry,
where walls and floors must resist chemicals. And the Space Shuttle never leaves Earth
without its protective jacket of high-tech, heat resistant tiles.

Highlights

Ceramic Tiles today have become an integral part of home improvement. It can make a
huge difference to the way your interiors and outdoors look and express. The Indian tile
industry, despite an overall slowdown of the economy continues to grow at a healthy 15% per
annum. Investments in the last 5 years have aggregated over Rs. 5000 crores. The overall size
of the Indian ceramic tile industry is approximately Rs 18,000 crore (FY12). The production
during 2011-12 stood at approx. 600 million square meters.

The Indian tile industry is divided into organized and unorganized sector. The
organized sector comprises of approximately 14 players. The current size of the organized
sector is about Rs 7,200 Crores. The unorganized sector accounts for nearly 60% of the total
industry bearing testimony of the growth potential of this sector.

India ranks in the top 3 list of countries in terms of tile production in the world. With
proper planning and better-quality control our exports (presently insignificant) contribution
can significantly increase.

Background

Apart from their decorative looks, Ceramic Tiles are primarily hygiene products and
that is how our broad spectrum of consumers view the product. This is fairly evident from its
varied usage from bathrooms and kitchens in average Indian households to medical centres,
labs, milk booths, schools, public conveniences, shopping malls and numerous other centres;
which dot our day to day life. A ceramic tile is basically a "utility product" and that remains
our promotional slogan. Popular housing projects are increasingly switching over to Ceramic
Tiles moving away from the traditional use mosaic and even granite or marble, owing to
several factors viz. ease in laying ability, versatility, low price and hygiene.

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Nevertheless, this decorative aspect of a Ceramic Tiles has forever been in the
forefront. Heavy churning out of bolder and colourful designs by the industry are testament to
the fact that most households regard a ceramic tile as an "adornment" for an otherwise "drab
look" of their age-old floorings or an unfurnished wall.

Overall Picture of the Industry

Ceramic tiles as a product segment has grown to a sizeable chunk today at

approximately 680 Million Square meters production per annum. However, the potential
seems to be great, particularly as the housing sector, retail, IT & BPO sectors have been
witnessing an unprecedented boom in recent times.

The key drivers for the ceramic tiles in India are the boom in housing sector coupled by
government policies fuelling strong growth in housing sector. The retail boom in the Indian
economy has also influenced the demand for higher end products. Overall the bullish growth
estimates in the Indian economy has significantly influenced the growth of the Indian
Ceramic tile industry.

The main product segments are the Wall tile, Floor tile, Vitrified tile and Industrial tile
segments. The market shares (in value terms) are 20%, 23% 50%, and 7% respectively for
Wall, Floor, Vitrified, and Industrial tiles. The tiles are available in a wide variety of designs,
textures and surface effects. They cater to tastes as varied from rustics to contemporary
marble designs in super glossy mirror finishes.

Both, traditional methods of manufacturing (tunnel) and the latest single fast firing
methods are deployed in manufacturing. Some of the latest trends in manufacturing methods
can be seen in India.

The industry also enjoys the unique distinction of being highly indigenous with an
abundance of raw materials, technical skills, infrastructural facilities despite being fairly
capital intensive. A total of over 5,50,000 people are employed in the sector. Out of this,
50,000 people are directly employed and 5,00,000 are indirectly associated. The potential is
huge considering the per capita consumption of ceramic tiles in India. Currently it is at 0.50
square meters per person in comparison to over 2 square meters per person for like countries
like China, Brazil and Malaysia

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Where we stand and what we must do?

As a foreign exchange earner or a global player, Indian Tile industry has captured the
attention of the world in the ceramic tiles segment. To compete internationally, our plants
must be geared up to large units currently operating in China and Turkey are driven by
economies of scale. These will also help us in lowering our cost of production significantly.
Also, infrastructural support is a key factor that determines the speed of growth. Better
infrastructure will bring in better growth in terms of consistency and sustenance. Freight,
supply of power and gas remains the key cost-related issues impacting the industry.
Availability, consistent supply and reasonable rates are extremely important for the growth of
the ceramic tile industry.

Also, the prevailing anomalies pertaining to Basic Customs Duty on import of ceramic
tiles from China and raw materials imported from abroad need to be corrected to prevent
dumping of tiles from China. Rural thrust should be enhanced by favourable excise duty and
MRP structure

Current Status of The Industry

The ceramic tiles industry in India has followed similar trends internationally which
have been characterized by excess capacities and falling margins. Countries like Malaysia,
Thailand, Indonesia, Sri Lanka and Vietnam are setting up their own plants. China has
emerged as a major competitor. Producers from Spain and Italy have the advantage of lower
transportation costs while exporting to USA and Germany. In India, the per capita
consumption is as low as 0.50 square meters per person compared to China (2.6 square
meters per person), Europe (5 to 6 square meters per person) or Brazil (3.4 square meters per
person). Rising disposable incomes of the growing middle class and 40 million units of
housing shortage hold out a great potential.

A major change that took over the ceramic tiles industry, was the introduction of
vitrified and porcelain tiles. These new entrant product types are said to be the tiles of the
future. Internationally these tiles are already the major sellers. These category of products
account for almost 50% of total tile sales by value in this industry.

These new products and the conventional wall & floor tiles have together made the
organized industry grow to a formidable Rs. 7,200 crores industry. This coupled with a spate
of expansions by many players make the industry look very promising in the future.

The Indian Industry has developed an export market although at the lower end. In
volume it constitutes less than half a percent of the global market. (Presently India does not
figure in the list of major exporting countries). But this reality could change as Indian exports
are rising at an accelerating growth annually. The top-end of the global export market is
presently dominated by China (36.8%) and Italy (15.1%)

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Ceramic Tiles Industry Statistics

1 World production: 11913 Million sq.m

2 India's Share: 750 Million sq.m
3 World ranking (in production): 3

4 Per capita consumption: 0.50 sq.m

5 Global Industry Growth Rate: 11%

6 Growth Rate (India Domestic Market): 15%

7 National Player's Turnover (India): Rs. 8600 crores

a). Glazed Wall Tile share: 45%

b). Glazed Floor Tile share: 8%

c). Polished Vitrified Tile share: 40%

d). Glazed Vitrified Tiles: 7%

8 Regional Player's Turnover: Rs 12900 crores

9 National Sector:
a). Share of Production: 40%
b). No. of units: 14
10 Regional Sector:
a). Share of Production: 60%

b). No. of units: 200 (approx.) (70% based in Gujarat)

11 Job Potential: 50,000 direct & 500,000 indirect

12 Export 40 million sq. m
13 Imports 45 million sq. m
14 Investments in last 6 years: Rs. 6000 crores

In the list of major exporting countries). But this reality could change as Indian exports
are rising at an accelerating growth annually. The top-end of the global export market is
presently dominated by China (36.8%) and Italy (15.1%)

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Top 10 Exporting Countries

% on
Country
(Sq.m. Mill.) World Export

CHINA 1148 42.9

SPAIN 318 11.9

ITALY 303 11.3

IRAN 114 4.3

TURKEY 88 3.3

MEXICO 80 3

BRAZIL 63 2.4

UAE 51 1.9

VIETNAM 50 1.9

POLAND 48 1.8

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Top 10 Consumption Countries

Country (Sq.m Mill.) % on World Consumption

CHINA 4556 39.4

BRAZIL 837 7.2
INDIA 748 6.5
INDONESIA 360 3.1
IRAN 350 3
VIETNAM 251 2.2

SAUDI ARABIA 235 2

RUSSIA 231 2
USA 230 2
TURKEY 226 2

Top 10 Manufacturing Countries

Country (Sq.m Mill.) % on World Production

CHINA 5700 47.8

BRAZIL 871 7.3
INDIA 750 6.3
IRAN 500 4.2
SPAIN 420 3.5
INDONESIA 390 3.3
ITALY 363 3
TURKEY 340 2.9

VIETNAM 300 2.5

MEXICO 228 1.9

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Top 10 Countries with Highest per Capita Consumption

Per Capita
Population (in Consumption (in
S.No. Country Consumption (in
Crores) msqm)
sqm)
1 SAUDI ARABIA 3.08 235 7.64

2 IRAN 7.78 350 4.5

3 BRAZIL 20.33 837 4.12
4 CHINA 136.73 4556 3.33
5 TURKEY 7.67 226 2.95

6 VIETNAM 8.97 251 2.8

7 RUSSIA 14.61 231 1.58

8 INDONESIA 25.22 360 1.43
9 USA 31.89 230 0.72
10 INDIA 126.09 748 0.59

Market share of Industry

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Geographical Presence of Ceramic Tiles Industries In India

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Indicate Presence of Ceramic Tiles Industries in India

• AML for Antique Marbonite Pvt. Ltd., Morbi, Gujarat

• AGL for Asian Granito (India) Ltd., Sabarkantha, Gujarat
• CGT for Coral Gold Tiles Pvt. Ltd., Morbi, Gujarat
• CGL for Coral Granito Pvt. Ltd., Morbi, Gujarat
• CTL Cengres Tiles Ltd., Dist. Mehsana, Gujarat
• ECL for Euro Ceramics Ltd., Kutch, Gujarat
• GCL for Gokul Ceramics Pvt. Ltd., Rajkot, Gujarat
• HRJ for H & R Johnson(India) A Division of Prism Cement Ltd., Dewas-MP,
Kunigal-Karnataka, Pen-Maharashtra, Karaikal-Pondicherry, Baddi-HP
• KCL for Kajaria Ceramics Ltd., Sikandrabad-UP, Gailpur-Rajasthan, Mobi-Gujarat
• MCL for Murudeshwar Ceramics Ltd., Karaikal-Pondicherry, Hubli, Bangalore-
Karnataka,
• OGL for Oracle Granito Ltd., Sabarkantha, Gujarat
• OCL for Orient Ceramics & Industries Ltd., Sikandrabad, UP
• OVL for Jaxx Vitrified Pvt. Ltd. (Formerly Ozzy Vitrified Pvt. Ltd.), Morbi,
Gujarat
• RAK for R.A.K Ceramics India Pvt. Ltd., Samalkot, AP
• RGL for Regent Granito (India) Ltd., Himatnagar, Gujarat
• SGL for Senso Granito Pvt. Ltd., Rajkot, Gujarat
• SCP for Sentini Cermica Pvt. Ltd., Krishna, AP
• SIC for Silica Ceramics (P) Ltd., West Godavari, AP
• SCL for Somany Ceramics Ltd., Bahadurgarh-Haryana, Kadi-Gujarat
• SVP for Simpolo Vitrified Pvt. Ltd., Morbi, Gujarat
• SJT for Spectrum Johnson Tiles Pvt. Ltd., Rajkot, Gujarat
• STL for Sunshine Tile Co. Pvt. Ltd., Rajkot, Gujarat
• SWC Swastik Ceracon Ltd., Dist. Mehsana, Gujarat
• UCL for Umiya Ceramic Pvt. Ltd., Morbi, Gujarat
• VGL for Varmora Granito (P) Ltd., Rajkot Gujarat

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HSN Code for Ceramic Products

The HSN code for ceramic products is provided under Chapter 69 of the HSN or
Harmonized System Nomenclature.

Ceramic Products Attracting 0% and 5% GST

Earthen pot and clay lamps are not taxable under GST. Building bricks, bricks of fossil
meals or similar siliceous earths and earthen or roofing tiles attract 5% GST rate.

Ceramic Products Attracting 18% GST

• Refractory bricks, blocks, tiles and similar refractory ceramic constructional goods,
other than those of siliceous fossil meals or similar siliceous earths.
• Tableware, kitchenware, other household articles and toilet articles, of porcelain or
china.
• Ceramic tableware, kitchenware, other household articles and toilet articles, other
than of porcelain or china [other than Earthen pot and clay lamps].

Ceramic Products Attracting 28% GST

• Blocks, tiles and other ceramic goods of siliceous fossil meals (for example,
kieselguhr, triptolide or diatomite) or of similar siliceous earths.
• Other refractory ceramic goods (for example, retorts, crucibles, muffles, nozzles,
plugs, supports, cupels, tubes, pipes, sheaths and rods), other than those of siliceous
fossil meals or of similar siliceous earths.
• Ceramic flooring blocks, support or filler tiles and the like.
• Chimney-pots, cowls, chimney liners, architectural ornaments and other ceramic
constructional goods. 6. 6906 Ceramic pipes, conduits, guttering and pipe fittings.
• Ceramic flags and paving, hearth or wall tiles; ceramic mosaic cubes and the like,
whether or not on a backing; finishing ceramics.
• Glazed ceramic flags and paving, hearth or wall tiles; glazed ceramic mosaic cubes
and the like, whether or not on a backing.

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• Ceramic wares for laboratory, chemical or other technical uses; ceramic troughs, tubs
and similar receptacles of a kind used in agriculture; ceramic pots, jars and similar
articles of a kind used for the conveyance or packing of goods.
• Ceramic sinks, wash basins, wash basin pedestals, baths, bidets, water closet pans,
flushing cisterns, urinals and similar sanitary fixtures.
• Statuettes and other ornamental ceramic articles.
• Other ceramic articles.

GST: Advantage organised players

The current composition of industry provided opportunity for consolidation and scaling
up operations for organised players with GST implementation. The sector has ~50%
unorganised players and ~70% of India’s total production of tiles from Morbi, which we
believe will outsource their facilities or vacate market for organised players with the GST
implementation – big beneficiaries would be mid segment players like AGL. Industry, worth
INR 260bn, expected to grow at ~13% y-o-y.

AGL is expected to gain domestic market share with implementation of GST and gain
from cost savings in octroi, freight, etc. We believe, the company will be major beneficiary of
GST and following are probable outcomes of GST implementation:

Morbi players may convert into organised players as GST will be difficult to bypass.
Morbi players could focus on export markets to take advantage of anti-dumping duty on
China by other countries. This could help organised players like AGL gain domestic market
share. Morbi players could outsource their facilities to organised players.

We believe, GST is one of the key factors which will drive shift of market share to the
organised segment and major beneficiaries will be players who have: Lower price
differential with unorganised players. Better product quality and larger product basket.
Established brand. Robust distribution network and availability of products.

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Basic Production Procedure for Ceramic Tiles

Application Overview – Ceramic Tiles Industry India

Indian Ceramic tile industry size is 3.8 billion EUR with installed capacity of 955 million
square meters ; Ceramic tile industry dominated by 16 organized players in terms of value

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Growth Drivers – Ceramic Tiles Industry India

Various government initiatives for infrastructure development and favourable

demographics expected to drive ceramics, sanitary ware and bathroom fittings industry in
future

Technology Trend in Ceramic Tiles Industry India

Nano technology, 3-D printing, large size tiles and double vitrified tiles are identified as
ongoing trends in the Indian ceramic tiles manufacturing

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Application Overview – Sanitaryware Industry India

Indian sanitary ware market estimated to be ~560 mio EUR in 2017; Basic segment is
dominated by unorganized players whereas standard, premium and luxury segment
dominated by organized players

Key Challenges – Ceramic Tiles Industry India

Ceramic clusters across India confront challenges with regards to raw material
availability, environmental issues, social issues, products dumping from China and energy
availability

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Technology Employed – Indian Ceramic Industry

Morbi cluster uses continuous (fuel efficient and high firing quality) kiln type; whereas
Khurja, Virudhachalam, East and West Godavari clusters use combination of batch and
continuous type of kilns

Government Support – Indian Ceramic Industry

Indian government has launched various schemes such as MSE- CDP and IIUS for
cluster development, CLCSS and NMCP for technology up gradation while MDA and MAI
for promoting exports of SSI clusters

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Initiatives – Ceramic Cluster Improvement

Initiatives for cluster modernization and restructuring has been undertaken by global
organization UNIDO as well as government authorities – MSME and Tamil Nadu SIDC

Initiatives for Energy Efficiency – Ceramic Industry India

Initiatives to improve energy efficiency of Indian ceramic clusters has been undertaken
by global organizations such as UNIDO and GEF as well as national organization such as
BEE and TERI

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Government Support – Ceramic Industry India

Lowered Goods and Service Tax is expected to narrow down pricing gap between
organized and unorganized players; Anti-dumping duty leved on ceramic tableware imported
from China for 5 years

Company History – Asian Granito India Limited

The company was incorporated on August 8, 1995, as Karnavati Fincap Private

Limited, for carrying on the business of a non-banking financial company. Subsequently, the
company has converted into a public limited company on August 29, 1995 and company
name was changed as Karnavati Fincap Limited. Thereafter, the company line of business
changed from finance to trading in cloth and accordingly renamed as Panchariya Textile
Industries Limited on March 18, 1999. Subsequently, on July 28, 2000, the company name
was renamed as Vasudev Textile Industries Limited. In September 2002, the promoters of
Asian Tiles Limited acquired entire shareholding of the Company. Thereafter, the company
line of business changed from trading in cloth to Ceramic tiles and accordingly renamed as
Asian Granito India Ltd. The company has setting up a new industrial undertaking for
manufacturing vitrified tiles at Dalpur village, Sabarkantha district, Gujarat. The Promoters
have considerable experience in the manufacture of ceramic floor tiles and under the brand
`ASIAN TILES'. The company has set up first facility for manufacturing vitrified tiles with a

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production capacity of 4000 square meters per day (33,580 metric tonnes per annum) and
started commercial production from October 2003. As the company has reached optimum
capacity utilization within a period of nine to ten months, company expanded the production
facility by installing a second manufacturing line and commenced commercial production
from the second line in January 2005. After installation of this second line the capacity of the
plant increased to 9000 square meters per day (75,500 metric tonnes per annum). The
company was the first manufacturers in India to produce slab vitrified tiles of 905mm x
905mm. By October 2005, the company has again reached optimum capacity utilization and
planned to install a third manufacturing line and commenced commercial production from the
third line in July 2006. Thus, after this expansion, the installed capacity of the plant has
become 14,000 square meters per day (117,500 metric tonnes per annum). In March 2006, the
company has acquired approximately 100% equity shares of Subsidiary, Asian Tiles Limited,
to make it a wholly owned subsidiary.

Introduction about Asian Granito India Limited

Established in the year 2000, the AGL has emerged as one of the largest ceramic
companies of India in a short span of 18 years. Its leadership is marked by many successful
challenges our incessant pursuit of excellence. Today it has emerged as one of India’s largest
groups, with a global footprint across more than 58 countries. Its capacity has grown 40-fold
in a span of just 18 years, it is India’s fastest growing Ceramic Wall & Floor Tile, Glazed
Vitrified Tiles, Polished Vitrified Tiles, Composite Marble and Quartz Company and among
the world’s 50 most profitable Ceramic tile Companies.

The AGL is the brainchild of two entrepreneurs, whose dream was to create the
world’s most sustainable building materials company. Their inestimable experience together
with a young and dynamic management team has created a formidable entity that is growing
at an amazing pace.

The AGL has debunked the myth that design leadership is a forte only of foreign
players, by achieving design leadership through an ideal mix of creativity and technology.
AGL’s leadership in introducing innovative digital printing technology, technical

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collaboration with SACMI, Italy and a world class Quality Management System has enabled
it to build a portfolio that is truly avant-garde.

From ceramic tiles, Nanotech, Roto-Drum to New Digital Technology, AGL

leads the way in creating the most diverse array of designs across the entire tile and marble
product range. Modernization plays a pivotal role for the company, which is evident from
their eight ultra-modern plants across Gujarat. Spread over an area of 3,20,000 Sq.mt. these
plants unfailingly produce world class products every day.

Their state-of-the-art design technology successfully addresses the aesthetic and

performance requirements of designers, architects, constructions companies and homeowners
across India. Driven by innovation and passion to excel, the Asian Granito India Ltd.
formidable and distinctive product range comes with the guarantee of international quality.

AGL’s all India presence is the result of a team of highly qualified professionals
and associates who cater to every nook and corner of India and have made brand AGL what it
is today. They proactively research trends and study consumer insights to ensure that their
product offerings are the most contemporary and modern in the exterior and interior world.

AGL has an extensive marketing and distribution network which comprises of

more than 6000+ Dealers and Sub-Dealers and more than 243+ Exclusive Dealer Showrooms
covering each and every state of the country, this helps the company to promote its range of
products to the consumers.

AGL (also known as Asian tiles) is a Himmatnagar based manufacturer of vitrified tiles, wall
tiles, floor tiles, multicharged tiles, Composite (agglomerated) marble and quartz stone. AGL
is the pioneer of digital printing technology in tiles industry. Today AGL is having truly
largest collection in any type of wall and floor tiles.

Cumulative production capacity is 81000 square meter of tiles per day

4000 dealers/sub-dealers
18 company owned depots
16 AGL World Showrooms across India
Presence across 37 countries
More than 1600 employees

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AGL tiles was the first to use roto print technology in India and also one of the first to
implement digital printing technology
The company have fully integrated in-house third firing facilities to make
highlighters/decors and listels.
AGL is one of the first company in India having CE marking for tiles products

AGL has an extensive marketing and distribution network which comprises of more
than 6000+ Dealers and Sub-Dealers and more than 243+ Exclusive Dealer Showrooms
covering each and every state of the country, this helps the company to promote its range of
products to the consumers.

Rom ceramic tiles, Nanotech, Roto-Drum to New Digital Technology, AGL leads the
way in creating the most diverse array of designs across the entire tile and marble product
range. Modernization plays a pivotal role for the company, which is evident from their eight
ultra-modern plants across Gujarat. Spread over an area of 3,20,000 Sq.mt. these plants
unfailingly produce world class products every day.

AGL’s all India presence is the result of a team of highly qualified professionals and
associates who cater to every nook and corner of India and have made brand AGL what it is
today. They proactively research trends and study consumer insights to ensure that their
product offerings are the most contemporary and modern in the exterior and interior world.

Asian Granito India Ltd. (AGL) has been silencing the sceptics by setting benchmarks
globally in the building materials domain. It has debunked myths that a fledgling company
from a small-town region in Gujarat can lead the change in the industry by setting higher
goals, achieving the unthinkable and creating new benchmarks.

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Vison and Mission of Asian Granito India Limited

Dreaming of a bold vision, striking a non-violent revolution, creating ground breaking

technology, thinking ahead of times - people who made a huge difference in the world have
embraced change.

Vision

• Aspire to beautify world by attaining global leadership through innovative ceramic products,
customer delight and satisfying all stakeholders.
• Remain undisputed leader in Marble & Quartz in India

Mission

• Growing profitably across the AGL Group.

• To be pioneer in bringing latest technology and provide best quality products.
• Create competitive advantage in market and lead the industry by innovations.
• To create healthy & productive work environment for all employees and associates.
• To empower communities for working towards safe, clean and green environment

Belief

• A Touch of Quality in Relations

Values

• Treat all stakeholders with respect and dignity.

• Ethics with Integrity, honesty and mutual Trust.
• Customer Satisfaction.
• Teamwork.

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Values of Asian Granito India Limited

Responsibility

We respect the fact that our investors have entrusted us with their capital, our partners
with their faith, our customers with their confidence and our employees with their aspirations.
We will measure our success by the success of our stakeholders and will work diligently to
ensure that we fulfil our fiduciary responsibility.

Integrity

We firmly believe that the difference between a good business and a great organisation
is the integrity of its people. We will conduct ourselves ethically and transparently in all our
dealings, both internal and external.

Leadership

We will maintain an environment which fosters creativity and encourages innovation.

We believe that this will enable us to attract, retain and nurture the best talent and develop the
business and thought leaders of tomorrow.

Mutual Respect

We will build an organization which has a positive mindset. By conducting every

interaction with respect and consideration, we will create a self-reinforcing culture of success.

Community

We believe that it is our responsibility to contribute to the environment in which we

operate. By investing in our community, we will not only improve our surroundings today, but
also provide better opportunities for future generations.

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Overview

• Ranked amongst Top 3 Listed Ceramic Companies in India

• 8 State of the Art Manufacturing Facilities spread across Gujarat
• Exporting Products across 53Countries
• 160 + Showrooms
• 8 Plants
• 5300 + Dealers / Sub Dealers
• Over 40X growth in just 16 years
• Professionals with over 22 years of experience in Ceramic Industry
• Uncompromising attitude towards Quality
• Production Capacity of 1,00,000 sq. metres. per day (including outsource)
• 1st in the World to introduce 5-layer tiles kiln from SACMI-ITALY

• Chairman & Managing Director

Mr. Kamlesh Patel

• Managing Director

Mr. Mukesh Patel

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Chairman’s Message

Professionalism has always been the hallmark of the company. We have a reputation
for having a fiercely talented, performance-oriented employees with highest levels of
integrity and professionalism.

Entrepreneurial Vision

Professionalism has always been the hallmark of the company. We have a reputation
for having a fiercely talented, performance-oriented employees with highest levels of
integrity and professionalism. It is the mainstay of all its endeavours and the cornerstone of
our corporate culture. Excellent team work & effective co-ordination among the various
agencies involved give an edge over our competitors. Extensive planning using the latest
management techniques enables us to exercise direct control over our operations & schedule.

We have the greatest asset in unrivalled range of professionally qualified and

experienced personnel. In order to serve our clientele better, we continuously invest in new
technologies and training to develop enhance the capabilities and competence of our
employees. The company offers performance-based incentive to honour outstanding work.
We conduct periodic group discussion among employees and management. Enhancing
technical expertise of employee and inculcating managerial skills are an integral part of our
employee empowerment program.

Our credibility & standards do not allow us to compromise on quality. We have

established quality assurance and quality control procedures and judiciously follow to
maintain quality standards at all stages.

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Business value drivers

Nature of Industry

The Indian tiles industry, worth INR 260bn, is the third‐largest tiles producer and
consumer in the world with an annual consumption of ~763 MSM. The sector is fragmented
between organised and unorganised players, each ~50%; sector clocked 9.6%/15.9%
volume/value CAGR over FY08‐15, respectively. Top 5 companies control 70% of organised
market & sector moving towards premium tiles segment.

Opportunity Size

The current composition of industry provided opportunity for consolidation and scaling
up the operations for organised players with the GST implementation – 50% unorganised pie
& ~70% of India’s total production of tiles from Morbi, which move to outsource their
facilities or vacate market for organised players – big beneficiaries would be mid segment
players like AGL. Industry, worth INR 260bn, expected to grow at ~13% y-o-y.

Capital Allocation

In last five years, AGL has done capex of INR 379cr (including amalgamation) and
generated additional sales of INR 442cr, including outsource sales. AGL expected to spend
INR 120cr in coming years towards doubling quartz capacity new joint ventures and
maintenance activities.

Predictability

With the shift from unorganised to organised with regulatory changes, shift towards
uses of value-added products and increasing pan India presence – key drivers for growth and
AGL with its capacity expansion, large product portfolio and wide distribution reach would
be biggest beneficiary.

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Sustainability

The major five players accounts for 70% of organised pie and with their distribution,
innovative products and capacity (own + outsourced) expected to sustain their dominance in
market. AGL is driven by the goal of achieving INR 2,000 cr in revenues by FY21
accompanied by margin expansion with increase in retail sales and VAPs mix, expected to
achieve with the sector structural changes.

Disproportionate Future

With the increasing product mix towards value added vitrified tiles and quartz improve
margins and increase in market share with sales volume expansion and geographic
penetration – ensure that the future performance in terms of return ratios will be better than
past.

Business Strategy & Planned Initiatives

Current focus of capacity expansion (own + outsource), geographic penetration, asset

light model (JV expansion), margin improvement with change in product mix and increase in
B2C sales.

Near Term Visibility

With the healthy sales growth (~19% CAGR over FY17-19E), margin improvement
(180bps expansion over FY17-19E) and restricted depreciation & interest expenses, expected
to result a PAT CAGR of 45.7% over FY17-19E.

Long Term Visibility

To remain one of the biggest Tiles manufacturer in India with the increasing domestic market
share and increasing export sales.

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Market Share

• AGL is the fourth largest player in Indian tiles market and accounts for approximately
3-4% of the Indian tiles market.

• It has also 94% market share in government infrastructure projects.

➢ Market Capital for tiles of AGL : 652.6 Cr.

➢ Total capital of AGL : 1370 Cr.
➢ Stock price : ASIANTILES (NSE) ₹ 184.50 (2nd May, 2019)

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Top Level Managing Persons of Company

Chairman & Managing Director: Kamleshbhai Patel

Managing Director: Mukeshbhai Patel

Independent Director: Amrutbhai Patel

Independent Director: Premjibhai Chaudhari

Director: Sureshbhai J Patel

Director: Bhaveshbhai V Patel

Director: Kanubhai Patel

Director: Bhogibhai Patel

Company Secretary: Renuka A Upadhyay

Independent Director: Indira Nityanandam

Independent Director: Hemendrakumar C Shah

Additional Independent Director: Mukeshbhai M Shah.

Additional Independent Director: Dipti Atul Mehta

Auditor Manubhai & Shah LLP

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Key Management

Mr. Kamlesh Patel (Chairman)

Mr. Kamlesh Patel has an overall experience of 18+ years in the tiles industry. He holds BBA
degree from Sardar Patel University. Mr. Patel started his career with the foundation of Kedia
Industries, a wall tiles manufacturer, in 1994. In 1999, along with Mr. Mukesh J. Patel, he
started Asian Tiles.

Mr. Mukesh Patel (Managing Director)

Mr. Mukesh Patel has 20+ years’ experience in the tiles industry. He started his career with
the foundation of Kedia Industries, a wall tiles manufacturer, in 1994. In 1999, along with
Mr. Kamlesh Patel he started Asian Tiles.

Mr. Tapan Jena (CEO)

Mr. Tapan Jena has an experience of ~28 years in Strategy Planning, Sales and Service
Operations, Business Development as well as Team Management. He is also experienced in
building material industries covering different product lines – ceramic tiles (wall, floor,
designer and industrial)/construction chemicals/sanitary ware and CP fittings.

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Major Shareholders of Company

Total Shares held

As a % of
No. Name of the Shareholder grand total
Number
(A) + (B) +
(C)
1 Kamleshkumar Bhagubhai Patel 37,23,741 12.38
2 Mukeshbhai Jivabhai Patel 22,99,174 7.64
3 Sureshbhai Jivabhai Patel 15,43,534 5.13
4 Bhogilal Bhikhabhai Patel 4,20,640 1.4
5 Rameshbhai Bhikhabhai Patel 3,31,615 1.1
6 Hinaben Kamleshbhai Patel 2,16,150 0.72

7 Kamleshbhai Bhagubhai Patel HUF 2,11,400 0.7

8 Hasmukhbhai Patel 2,02,836 0.67
9 Jivabhai Jethabhai Patel (HUF) 1,49,600 0.5
10 Sureshbhai Jivabhai Patel HUF 1,48,036 0.49
11 Bhagubhai Punjabhai Patel 1,33,700 0.44
12 Bhagubhai Punjabhai Patel HUF 1,27,700 0.42
13 Bhikhabhai Kodarbhai Patel 1,26,710 0.42
14 Bhanuben Mukeshbhai Patel 1,21,600 0.4
15 Chhayaben Sureshbhai Patel 1,08,430 0.36
16 Mukeshbhai Jivabhai Patel ( Huf) 98,710 0.33
17 Hiraben Bhagubhai Patel 72,760 0.24
18 Dimpalben Bhogibhai Patel 68,340 0.23
19 Gitaben Rameshbhai Patel 43,906 0.15
20 Bhoghibhai B. Patel (Huf) 34,700 0.12
21 Danjibhai Parshottambhai Patel 33,726 0.11
22 Dipakbhai Danjibhai Patel 20,000 0.07
23 Dipakbhai D. Patel (HUF) 11,300 0.04
24 Ushaben Deepakbhai Patel 8,731 0.03
25 Chandhricaben Danajibhai Patel 5,365 0.02

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AGL: Key Milestones

2000-01 Commercial production started at Himmatnagar, Gujarat. 2002-03 Ceramic

floor tiles production started with 2,500 square meters per day and capacity reached to 6,000
square meters per day. 2004-06 Himmatnagarplant capacity expanded from 4,000 square
meters per day to 18,000 square meters per day. 2007-08 Floated initial public offering,
Launched AGL Tiles World in 14 Indian cities, Introduced wall tile with 10,000 sq. meter per
day. 2009-10 Started commenced production of marble slabs, expanded wall tiles capacity to
20,000 square meters per day, established new digital printing technology for ceramic wall
tiles. 2011-12 Started manufacturing of Quartz slab, launched digital GVT. 2012-13 Expanded
product range in value-added tiles, increased number of AGL tiles world outlets to 50. 2014-
15 Launched double-charged PVT, increased manufacturing units to 8 and capacity to 1,00,000
square meters per day. 2015-16 Amalgamation of Artistique Ceramic. 2016-17 Expanded the
product portfolio by introducing new Engineered Marble and Quartz. 2017-18 Launched new
Product Range ‘RAINBOW GLITZ”

Growth of the Industry

Ceramic Tiles today have become an integral part of home improvement. It can
make a huge difference to the way your interiors and outdoors look and express. The Indian
tile industry, despite an overall slowdown of the economy continues to grow at a healthy 15%
per annum. Investments in the last 5 years have aggregated over Rs. 5000 crores. The overall
size of the Indian ceramic tile industry is approximately Rs 18,000 crore (FY12). The
production during 2011-12 stood at approx. 600 million square meters.

The Indian tile industry is divided into organized and unorganized sector. The
organized sector comprises of approximately 14 players. The current size of the organized
sector is about Rs 7,200 Crores. The unorganized sector accounts for nearly 60% of the total
industry bearing testimony of the growth potential of this sector.

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India ranks in the top 3 list of countries in terms of tile production in the world. With
proper planning and better-quality control our exports (presently insignificant) contribution
can significantly increase.

The industry also enjoys the unique distinction of being highly indigenous with an
abundance of raw materials, technical skills, infrastructural facilities despite being fairly
capital intensive. A total of over 5,50,000 people are employed in the sector. Out of this,
50,000 people are directly employed and 5,00,000 are indirectly associated. The potential is
huge considering the per capita consumption of ceramic tiles in India. Currently it is at 0.50
square meters per person in comparison to over 2 square meters per person for like countries
like China, Brazil and Malaysia

The main product segments are the Wall tile, Floor tile, Vitrified tile and Industrial tile
segments. The market shares (in value terms) are 20%, 23% 50%, and 7% respectively for
Wall, Floor, Vitrified, and Industrial tiles. The tiles are available in a wide variety of designs,
textures and surface effects. They cater to tastes as varied from rustics to contemporary
marble designs in super glossy mirror finishes.

Both, traditional methods of manufacturing (tunnel) and the latest single fast firing
methods are deployed in manufacturing. Some of the latest trends in manufacturing methods
can be seen in India.

Current Status of the Industry

The ceramic tiles industry in India has followed similar trends internationally
which have been characterized by excess capacities and falling margins. Countries like
Malaysia, Thailand, Indonesia, Sri Lanka and Vietnam are setting up their own plants. China
has emerged as a major competitor. Producers from Spain and Italy have the advantage of
lower transportation costs while exporting to USA and Germany. In India, the per capita
consumption is as low as 0.50 square meters per person compared to China (2.6 square
meters per person), Europe (5 to 6 square meters per person) or Brazil (3.4 square meters per
person). Rising disposable incomes of the growing middle class and 40 million units of

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housing shortage hold out a great potential.

A major change that took over the ceramic tiles industry, was the introduction of
vitrified and porcelain tiles. These new entrant product types are said to be the tiles of the
future. Internationally these tiles are already the major sellers. These category of products
account for almost 50% of total tile sales by value in this industry.

These new products and the conventional wall & floor tiles have together made the
organized industry grow to a formidable Rs. 7,200 crores industry. This coupled with a spate
of expansions by many players make the industry look very promising in the future.

The Indian Industry has developed an export market although at the lower end. In
volume it constitutes less than half a percent of the global market. (Presently India does not
figure in the list of major exporting countries). But this reality could change as Indian exports
are rising at an accelerating growth annually. The top-end of the global export market is
presently dominated by China (36.8%) and Italy (15.1%)

Anti-dumping duty

Duty on China to boost organised players The Directorate General of Anti-Dumping

and Allied Duties (DGAD) has imposed anti-dumping duty on Chinese vitrified tiles for the
next 5 years (valid up to 2022). The action was taken on an application filled by Gujarat
Granito Manufacturers Association and Sabarkantha District Ceramic Association along with
24 producers of vitrified tiles in India for initiation of anti-dumping investigation and
imposition of anti-dumping duty concerning imports of vitrified/porcelain tiles which
originate in or are exported from China.

The DGAD had recommended imposition of anti-dumping duty on imports of

glazed/unglazed porcelain/vitrified tiles in polished or unpolished finish with less than 3%
water absorption to protect domestic players. Hence, the government imposed a provisional
anti-dumping duty between USD 0.79 per sq mt and USD 1.87 per sq mt.

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Vitrified tiles (polished and glazed) constitute almost ~50% of total India tiles
consumption and most of the Chinese imports are in South India. AGL is expanding its
capacity in South India via a JV plant and has also launched products like 800 x 800
mm/1000 x 1000 mm vitrified tiles to grab the potential opportunity and save freight cost.
Post the antidumping duty, Chinese tiles will be expensive by INR 30 per sq mtr, creating
room for domestic players to hike prices depending on demand.

Huge Export Opportunity

The anti‐dumping duty imposed on China—largest tiles exporter globally—by

European countries (in May 2013 for 5 years), Korea, Vietnam, Brazil, Chile, Taiwan etc.,
provided an exports opportunity to Indian players. As these duties have been imposed for ~5
years, Indian players will continue to tap newer markets and gain market share. AGL exports
its products to 53 countries and exports contribute ~7% (FY17) to consolidated sales, up from
3% in FY14.

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AGL Total Capacity

Product Positioning Comparison

New product/design launches in the last two

Company Products pricing
years

● CARARRA White unglazed large format

Ceramic Rs 30-65/sq ft
Double Charge ● XXL – Polished Glazed
Asian ●Vitrified Rs 40-110/sq ft
Vitrified Tile ● Big Crack Stone – Double
Granito ● Glazed vitrified Rs 70-
charged polished vitrified tile ●Hardstonee)
165/sq ft
Grandura (Parking Tiles) ● Hexabon tiles
Ceramic Rs 28-100/sq ft ●
● Strome Hi definition Digital ceramic wall tiles
Kajaria Vitrified Rs 42-120/sq ft ●
● Eternity HD (Digital Glazed/polished Vitrified
Ceramics Glazed vitrified Rs 60-
Tiles ● The Beast 120 x 240 cm (Italian tile)
350/sq ft

Ceramic Rs 30-65/sq ft ●
● Rock Solid tiles – floor tile ● New size
Somany Vitrified Rs 40-120/sq ft ●
addition 800 x1200 mm PVT with ultra-charge
Ceramics Glazed vitrified Rs 75-
● Slip Shield – slip resistant technology
145/sq ft

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Sustained launch of new products

AGL is continuously lauching new products, ranging from affordable tiles to upper-end
glazed vitrified tiles. The expanding product basket has started creating a ‘pull’ for its
products and also improved its realisations.

Product Name Size in mm

Rainbow Glitz - 9 COLOR DIGITAL TILES WITH
300x900mm 300x600mm
SPECIAL EFFECTS
GLISTER – POLISHED PORCELAIN TILES 600X600MM
STEP & RISER 300X1000MM 300X800MM
ECO BLANCO 300X300MM
Engineered Quartz (Different Sizes to cater to
1400 x 3100 1600 x 3200
different markets)
Grestek – Splendour Series – Introduced 13 SKU’s 800 x 1600
300 x 600, 600 x 1200, 600 x 600,
Grestek – Marvel Colour Body Tiles
196 x 1200
Imperio – Double Charge – Introduced 17 SKU’s 800 x 800
Jumbo - Double charge – Introduced 16 SKU’s 1000 x 1000
CARARRA White (World’s Whitest Tile – in
800 x 800
unglazed large format Double Charge)
XXL – Polished Glazed Vitrified Tile 800 x 1200
Polished Vitrified Tile (Double Charge) & Big
Crack Stone (new design introduced first time in 800 X 1200 & 1000 X 1000
India)
Hardstone (Outdoor Tiles in 16 mm & 10 mm
600 x 600
thickness)
Grandura (Parking Tiles) 300 x 300 & 400 x 400
Hexacon Tiles (first to introduce) 304 x 350
Grestek SLIMGRES 600 x 1200

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Porter’s Five Force Model

Threats of New Entrance:

New entrants in Retail brings innovation, new ways of doing things and put pressure on
AGL tiles through lower pricing strategy, reducing costs, and providing new value
propositions to the customers. AGL tiles has to manage all these challenges and build
effective barriers to safeguard its competitive edge.

How AGL tiles can tackle the Threats of New Entrants

By innovating new products and services. New products not only bring new customers to
the fold but also give old customer a reason to buy AGL tiles products. By building economies of
scale so that it can lower the fixed cost per unit. Building capacities and spending money on
research and development. New entrants are less likely to enter a dynamic industry where the
established players such as AGL tiles keep defining the standards regularly. It significantly
reduces the window of extraordinary profits for the new firms thus discourage new players in the
industry.

Bargaining Power of Suppliers:

All most all the companies in the Retail industry buy their raw material from numerous
suppliers. Suppliers in dominant position can decrease the margins AGL tiles can earn in the
market. Powerful suppliers in Consumer Services sector use their negotiating power to
extract higher prices from the firms in Retail field. The overall impact of higher supplier
bargaining power is that it lowers the overall profitability of Retail.

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How AGL tiles can tackle Bargaining Power of the Suppliers

By building efficient supply chain with multiple suppliers. By experimenting with

product designs using different materials so that if the prices go up of one raw material then
company can shift to another.

Bargaining Power of Buyers:

Buyers are often a demanding lot. They want to buy the best offerings available by
paying the minimum price as possible. This put pressure on AGL tiles profitability in the long
run. The smaller and more powerful the customer base is of AGL tiles the higher the
bargaining power of the customers and higher their ability to seek increasing discounts and
offers.

How AGL tiles can tackle the Bargaining Power of Buyers

By building a large base of customers. This will be helpful in two ways. It will reduce the
bargaining power of the buyers plus it will provide an opportunity to the firm to streamline its
sales and production process. By rapidly innovating new products. Customers often seek
discounts and offerings on established products so if AGL tiles keep on coming up with new
products then it can limit the bargaining power of buyers. New products will also reduce the
defection of existing customers of AGL tiles to its competitors.

Threats of Substitute Products or Services

When a new product or service meets a similar customer needs in different ways,
industry profitability suffers. For example, services like Dropbox and Google Drive are
substitute to storage hardware drives. The threat of a substitute product or service is high if it
offers a value proposition that is uniquely different from present offerings of the industry.

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How Top tiles company can tackle the Treat of Substitute Products / Services

By being service oriented rather than just product oriented. By understanding the core need
of the customer rather than what the customer is buying. By increasing the switching cost for the
customers.

Rivalry among the Existing Competitors

If the rivalry among the existing players in an industry is intense then it will drive
down prices and decrease the overall profitability of the industry. AGL tiles operates in a
very competitive Retail industry. This competition does take toll on the overall long-term
profitability of the organization.

How AGL TILES can tackle Intense Rivalry among the Existing Competitors in Retail
industry

By building a sustainable differentiation. By building scale so that it can compete better.

Collaborating with competitors to increase the market size rather than just competing for small
market.

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Corporate Social Responsibility

Besides quality, we lay an equal emphasis on good housekeeping and safe working
conditions. Every employee of Asian Granito India Ltd. (AGL) is encouraged and educated
about environment protection and conservation of natural resources. All the manufacturing
processes and equipment’s designed either reduce or completely eliminate pollution. We aim
to implement globally recognized environment management system in tandem with our
business goals.

Safety of our employees is of paramount importance. In order to attain the goal of

complete safety at work we have charted out a comprehensive health and safety program for
our employees. We have incorporated latest safety methods and maintained excellent
standards of safety in the industry. All manufacturing processes and equipment’s are checked
periodically to meet our stringent safety requirements and norms. In order to avert any
unforeseen hazard, we educate our employee about vital first aid procedures along with
mandatory training in fire safety drills. Our specially trained safety supervisors are committed
to ensure an accident free work environment. An atmosphere, conducive to express concerns
over safety methods or suggestions to improve safety methods has been created.

The Company is contributing to sustainable development by its economic activities

combined with the fulfilment of its social responsibilities relating to the education, health,
safety and environment aspects.

The Company is contributing to sustainable development by its economic activities

combined with the fulfilment of its social responsibilities relating to the education, health,
safety and environment aspects.

• Asian institute of Technology, Vadali

• Donation to various Charitable Trust
• Blood donation camps every year
• Company is also involved in eradication of hunger by way of contribution to Akshaypatra
Foundation

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Products of Asian Granito India Limited

Wall Tiles Engineered

Marble

Parking Quartz stone

Vitrified

Floor Tiles Grestek

Wall Tiles : Digital Wall | Ceramic Wall | Bathroom Tiles | Kitchen Tiles
Floor Tiles : Double Charge | Parking Vitrified Tiles | Polished Vitrified | Ceramic
Floor | Porcellanto - Tuff Guard | Porcellanto Digital | Hexacon | Glister Polished Porcelain
Tiles
Grestek : Grestek Slimgres | Grestek Marvel | Digital Glazed Vitrified | Glazed
Vitrified | Grestek XXL | Grestek HardStone | Grestek Tuffguard | Grestek
Splendour | Grestek Marblex
Composite Marble :Crystal Series | Empyrean Series | European Series | Magnum
Series | Maridian Series | Victorian Series
Quartz : Crystal Series | Elegant Series | Emerald Series | Silken Series | Spectra
Series | Swiss Series | Onyx Series | 3D Series

Bath ware: Water closet | One Piece water closet | Wall hung water closet | 2 Basin |

Table top basin | Wall hung basin |Corner basin | Basin with full pedestal |

Basin with half pedestal | Integrated half pedestal | Semi recessed basin | Under counter basin
| Vanity basin

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Distribution Network

Company

Distributors/Stockiest

Dealers

Sub dealers

End Users

Financial Performance and Global Impact

We took a new initiative to open AGL tiles world exclusives across India and presently
we reached to more than 75 AGL tiles world exclusive showrooms in Major cities of India
and adding to this, we open first ever largest AGL tiles world in Johannesburg, South Africa.
We possess the strength of over 4000 business associates 16 display centres spread across the
nation. We are all set to reach the goal of supply world class product through eight ultra-
modern plants in Gujarat, spread over an area of 320,000 sq. metre and production capacity is
about 100000 sq. mt. (including outsourcing) per day of tiles. Day to day demand is
increasing and there is a gap between demand and supply and we are trying to match that
level and gradually we are increasing our production facility and it will be affecting the
global markets and create a huge impact.

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Company Owned display centres of Asian Granito India Limited

o Bengaluru
o Hyderabad
o Kolkata
o Ahmedabad
o Delhi
o Mumbai
o Chennai
o Jaipur

Marketing Activities

• From 1st November, 2017 we have begun our New Brand Campaign (Chala De
Jaadoo) on all platforms i.e. Electronic Media, Digital Media and Outdoor Marketing
PAN India
• Showcase Ad Commercials in 1,400 Screens across India in Major Cinemas during 3
Mega Blockbusters
• Advertisement in Top In flight & Architect Magazines

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• Participation in International Exhibitions: CERSAIE – Italy, Big-5 Dubai, Expo

Nacional Ferretera – Mexico
• Extensive Regional Road Shows in Gujarat, Maharashtra and Kerala
• Active online presence in Social Media: Facebook, Twitter, Pinterest
• Cab Branding in Chennai
• BIG 5 Dubai Airport Branding
• Awarded the Next Fortune 500 India Company

Competitors of Asian Granito India Limited

o Somany
o Johnson
o Kajaria
o Bajaj
o Orient bell
o Nitco
o Lioli
o Simpolo
o Sunheart
o Varmora

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Organizational Structure of Asian Granito India Limited

Chief Managing Director

Managing Director

Directors (21)

General Manager

Senior General Manager (Vertical wise)

Assistant General Manager (State Head)

Project, Retail and Government Head

Managers

Senior Executives

Executives

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Capital structure of Asian Granito India Limited

Authorized Issued
Period -PAIDUP–
Capital Capital
Instrument
Shares Face
From To (Rs. cr) (Rs. cr) Capital
(nos) Value

2017 2018 Equity Share 36.25 30.09 30087446 10 30.09

2016 2017 Equity Share 36.25 30.09 30087446 10 30.09

2015 2016 Equity Share 31.25 22.58 22582541 10 22.58

2014 2015 Equity Share 31.25 22.58 22582541 10 22.58

2013 2014 Equity Share 31.25 22.58 22582541 10 22.58

2012 2013 Equity Share 31.25 22.16 22161291 10 22.16

2011 2012 Equity Share 31.25 21.06 21061291 10 21.06

2010 2011 Equity Share 31.25 21.06 21061291 10 21.06

2009 2010 Equity Share 31.25 21.06 21061291 10 21.06

2008 2009 Equity Share 31.25 21.06 21061291 10 21.06

2007 2008 Equity Share 25 21.06 21061291 10 21.06

2006 2007 Equity Share 25 14.06 14061291 10 14.06

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Financial ratios of Asian Granito India Limited

Mar Mar Mar Mar Mar

'18 '17 '16 '15 '14

Investment Valuation Ratios

Face Value 10 10 10 10 10
Dividend Per Share 1.3 0.8 0.5 -- --
Operating Profit Per Share (Rs) 28 27.04 31.02 26.75 28.25
Net Operating Profit Per Share (Rs) 333.86 314.43 386.57 364.54 336.16
Free Reserves Per Share (Rs) -- -- -- -- --
Bonus in Equity Capital 46.73 46.73 62.26 62.26 62.26

Profitability Ratios
Operating Profit Margin (%) 8.38 8.59 8.02 7.33 8.4
Profit Before Interest and Tax Margin (%) 6.63 6.82 5.58 5.02 5.54
Gross Profit Margin (%) 6.67 6.86 5.59 5.02 5.55
Cash Profit Margin (%) 4.97 5.04 4.59 4.06 4.7
Adjusted Cash Margin (%) 4.97 5.04 4.59 4.06 4.7
Net Profit Margin (%) 3.28 3.35 2.16 1.75 1.86
Adjusted Net Profit Margin (%) 3.26 3.33 2.16 1.75 1.85
Return on Capital Employed (%) 13.62 14.26 9.99 9.21 8.23
Return on Net Worth (%) 8.72 9.11 5.84 4.91 5.04
Adjusted Return on Net Worth (%) 8.72 9.11 5.84 4.91 5.04
Return on Assets Excluding Revaluations 125.59 115.62 143.38 130.36 124.14
Return on Assets Including Revaluations 125.59 115.62 143.38 130.36 124.14
Return on Long Term Funds (%) 18.13 19.58 14.51 13.7 14.49

Liquidity and Solvency Ratios

Current Ratio 0.98 0.93 0.89 0.87 0.83

Quick Ratio 1.16 1.12 1.24 1.27 1.76
Debt Equity Ratio 0.4 0.43 0.52 0.56 0.88
Long Term Debt Equity Ratio 0.05 0.04 0.06 0.05 0.07

Debt Coverage Ratios

Interest Cover 3.36 2.93 2.1 1.9 2.07
Total Debt to Owners Fund 0.4 0.43 0.52 0.56 0.88
Financial Charges Coverage Ratio 4.17 3.61 2.99 2.75 3.1
Financial Charges Coverage Ratio Post Tax 3.34 2.99 2.69 2.5 2.7

Management Efficiency Ratios

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Inventory Turnover Ratio 5.08 5.07 5.04 4.83 4.11

Debtors Turnover Ratio 3.52 4.41 5.2 4.78 4.27
Investments Turnover Ratio 5.08 5.07 5.04 4.83 4.11
Fixed Assets Turnover Ratio 3.78 3.7 2.23 2.49 2.47
Total Assets Turnover Ratio 1.9 1.91 1.77 1.82 1.44
Asset Turnover Ratio 1.96 1.9 1.82 1.67 1.47
Average Raw Material Holding -- -- -- -- --
Average Finished Goods Held -- -- -- -- --
Number of Days in Working Capital 90.52 86.47 106.51 112.75 162.02

Profit & Loss Account Ratios

Material Cost Composition 65.88 68.28 67.31 62.8 62.52

Imported Composition of Raw Materials Consumed -- -- -- -- --
Selling Distribution Cost Composition 2.55 1.52 0.98 -- --
Expenses as Composition of Total Sales 9.2 6.97 5.44 3.68 6.36

Cash Flow Indicator Ratios

Dividend Pay-out Ratio Net Profit 7.29 4.74 -- -- --

Dividend Pay-out Ratio Cash Profit 4.79 3.13 -- -- --
Earning Retention Ratio 92.71 95.26 100 100 100
Cash Earning Retention Ratio 95.21 96.87 100 100 100
Adjusted Cash Flow Times 3.01 3.09 4.17 4.93 6.94

Technology

• 1st in the World to introduce 5-layer tiles kiln from SACMI-ITALY

• First to establish Online Vitrified Technology
• First in India to have Digital 9 Colour Printing Technology
• A Pioneer with Best Water Jet Technology
• Highest number of Digital Machines in India
• Only Ceramic Company to have in-house 3rd Fire Technology
• India's BIGGEST KILN with 5 Line Tiles in Single Process world first in India by SACMI
• First to set up MULTI-COLOUR Quartz line in India
• Highest Number of DIGITAL MACHINES in India totalling to 13

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Moving to B2C

Moving to B2C sales AGL’s sharpened focus on retail sales is reflected in the
continuously rising retail sales contribution from 25% to 35% over the past four years. The
company is also enhancing its retail presence through a large network of distributors, retailers
and exclusive showrooms. It is targeting retail sales of 50% in coming years via addition of
new dealers & sub-dealers and exclusive showrooms. It is also eyeing geographical
expansion, which will boost volumes, and higher retail presence will improve realisation,
resulting in improved earnings.

Strengthening its network—970 direct dealers

AGL is expanding its distribution network aggressively and also improving sales per
dealer. The company has a strong and widespread dealership network of 970 currently
(versus Kajaria’s 1,100 and Somany’s 1,528), up from 700 in FY11, and expected to reach
1,200 by FY19. It added 25 dealers in Q1FY18. The company’s sales per dealer has been
improving over the past three years (12.5% CAGR over FY15-17) against flat for Kajaria as
well as Somany. Its dealers cater to ~4,330 sub-dealers/associate dealers across the country,
almost at par with industry leader (Kajaria).

Focus on Premiumisation

AGL is gradually shifting focus to the value-added segment—from ceramic to vitrified

tiles and quartz—which enjoys better realisations. Contribution of value-added products is
estimated to rise to ~50% in next couple of years. The company has created a separate
vertical for its very high-value product range to sharpen focus on the segment. Further, to
support this segment, AGL has widened its product basket through launch of multiple
designs, sizes, textures and colours (revenue target of INR 2,000 carore by FY21).

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Export countries of Asian Granito India Limited

Asian Granito India Ltd exports spread across an ever-growing network of more than
58 countries. Treading along the global pathway, (AGL) is the first ever Indian tile company
to launch the largest showroom in Johannesburg, South Africa. AGL has received Award and
Certificate of Merit for export of year 2012-13. AGL has spread its wings ahead to deliver its
best product globally.

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Awards and Recognitions

AGL has come a long way since its inception in the year 2000. Below are some of the
awards and recognition bestowed on AGL in recognition of its efforts in delivering high-end
products to millions of satisfied customers across the world.

AGL Achievements

AGL is always setting up the international benchmark to perform and deliver better
than the best in whatever we do. Since its inception, Asian Granito India Ltd has received
many accolades from the various organizations and governments.

• Fortune India The Next 500 -Fortune India The Next 500
• Asian Granito India Ltd - Certificate IGBC 2018-Asian Granito India Ltd - Certificate
IGBC 2018
• Highest Productivity Award-Vibrant Ceramics Expo & Summit 2017
• AGL BIS Licence Copy-AGL BIS Licence Copy
• Asian Granito India Ltd - Certificate IGBC-Asian Granito India Ltd - Certificate
IGBC
• GRIHA PC_AGL DC, GVT, HST-GRIHA PC_AGL DC, GVT, HST
• GRIHA PC_AGL Renewal-AGL BIS Licence Copy
• Greentech Environment Award-Greentech Environment Award, 2017
• Mega Brand Award-Architecture and Design Magazine, 2016
• The Economic Times Promising Brand-2015
• Best Overall Display Award-STONE MART 2015
• Grand Stand Award -ACE TECH 2014
• Indian Power Brand-2014
• Energy Conservation Award-Ministry of Energy, New Delhi 2012
• Power Brand Rising Star Award-2012
• 1st Prize in Ahmedabad-MBA Property Show. February, 2010
• 2nd Prize in Jaipur-Decor India Exhibition. January, 2010

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• 2nd Prize in Delhi-Mega Show. December, 2007

• 1st Prize in Chandigarh-Mega Show. February, 2006
• 2nd Prize in Kochi-Mega Show. October, 2005
• 1st Prize in Hyderabad-Mega Show. September, 2005
• 1st Prize in Ludhiana-Mega Show. August - 2005
• 1st Prize in Coimbatore-Mega Show. July - 2005
• 3rd Prize in Surat-Mega Show. June - 2005
• 1st Prize in Pune-Mega Show. February - 2005
• 1st Prize in Chandigarh-Mega Show. February - 2005
• 3rd Prize in Ludhiana-Mega Show. January - 2005
• 2nd Prize in Ahmedabad-Mega Show. January - 2005
• 1st Prize in Indore-Mega Show. January - 2005
• 2nd Prize in Delhi-Mega Show. December - 2004
• 2nd & 3rd Prize in Kochi-Mega Show. October – 2004
• 1st Prize in Ahmedabad -October - 2004
• 1st Prize in Bangalore-Mega Show. October - 2004
• 2nd & 3rd Prize in Coimbatore-Mega Show. July - 2004
• 1st Prize in Surat-Mega Show. June - 2004
• 1st Prize in Surat-Sthaptya 2003
• BIS Certificate

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Regional Contacts

City Contact Number

Chandigarh 0172-4002383

Jaipur 0141-2742531

Kolkata 081005 71514

Ahmedabad 079-66125500/534

Himatnagar 02770-304288

Indore 0731-4006670/90

Morbi 02822-325854

Mumbai 022-65250008/9321495240

Nagpur 9373999018

Pune 020-26440014

Bangalore 080-32900752/32002164

Calicut 0495-3205033

Chennai 044-42024658

Coimbatore 0422-4368744

Hyderabad 040-65445611

Kochi 0484-3219382

Patna 7763802231

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SIP objective

To understand promoter`s market in Ahmedabad area`s dealers, distributors,

builders and architects. Identify which size and designs customer prefers. Know about
company`s weakness and strong points against their competitors. Identifying how
company can improve sales of ceramic tiles. To understand problems of dealers and
distributors and resolve it. To increase sub dealer network by making new dealers and
distributors. To develop and improve tiles designs. It provides confidence & experience in
working in the real world. Learning about pricing and different size and types of ceramic
tiles. To analyse the practical implication of theoretical knowledge acquired during the
PGDM program. To gain practical knowledge about the organization. Assist the
student’s development of employer-valued skills such as teamwork, responsibilities and
communications. To know about the culture of the company and to learn the behaviour of
the company. To understand the major functions along with the products of the company.
It provides confidence& experience in working in the real world.

Task to be performed

Identifying tiles market in Ahmedabad area. Gathering sales information about

dealers/sub-dealers/distributors and stockists. Taking surveys of builder firms and
architect firms. Identifying promoters of AGL tiles. Taking different surveys of dealers
and distributors and sub dealers. Meet dealers and distributors and discuss about which
problems and issue they are facing with AGL. Meet builders and architects to know
which designs and sizes their customers are preferring. Report issues of dealers and
distributors to company`s particular department whether it is marketing of production.
Meet exclusive dealers and discuss their sales per month and send analysed report to
company. Meet builders for feedback of AGL tiles. Search promoters who wants to take
dealership of AGL tiles. Listing dealers who have not samples of particular types and
sizes and provide them sample products. Handling clients at display centre.

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Methodology of task

Filling up the questionnaire by having one to one conversation with

dealers/distributors/builders/architects. Go to each dealers/builders/architect and
asking them different questions and take surveys. Also asking for the related
information which can improve the sales of tiles. Observing the customers entering
the display centre which tiles series they buying.

Activities performed

• Handling clients at display centre

• Taking different surveys
• Meet dealers and distributors
• Solve the queries dealers and distributors
• Meet builders and architects
• Giving all the details about types and sizes available
• Reporting to the manager after analyse survey

Lessons learned

Discipline, Punctuality, Cooperation, Responsibilities, Distribution channel of

organization, Conversations, Analysing market, How to handle customer at store, Deal
closing techniques and many more…

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Comprehensive Analysis of Industry

• Political Factor

Political factors are moderately unfavourable to the industry as the present government
export import policies regarding dumping production from China to India. Their environment
protection law is not favouring the industry and the pressure from the players such as RAK
ceramics and Chinese players are increasing.

• Economical Factor

Economical condition in to the country is moderately favourable to the ceramic tiles

industry. As Indian economy is growing at the around 5 to 6 %. The interest rates are
favourable, the employment in the economy is increasing and disposable income of the
customer is increasing and energy availability is increasing but at the higher cost.

• Social Factor

Social condition of the Indian population is nearer to favourable as their need and
trends are changing. The demand for housing is increasing. The standards of living in metro
cities and semi urban areas and rural areas are increasing. Which is positive sign for Indian
ceramic tiles industry.

• Technological Factor

Technological factors are moderately favourable to the ceramic tiles industry of India.
The manufacturing process used in Indian ceramic tiles industry is highly energy driven as
well as the cost of fuel and gas is increasing from the cost point of view. The digital printing
is the new technology introduce in to Indian tiles ceramic industry. Other technology such as
nanotechnology and waterjet technology are also being favourite and adopted by the Indian
players.

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SWOT Analysis

• Strengths

It established in the year 2000 and emerged as a top brand. It has emerged as
one of India’s largest groups, with a global footprint across 30+ countries. Its capacity has
grown significantly. It is India’s fastest growing ceramic, vitrified tile, marble and quartz
company. The company is among the world’s 50 most profitable ceramic tile companies.
The company has 4000 employees, 4000 Sub dealers and even many exclusive
showrooms. Excellent marketing team is one of the best strengths of AGL. Wide range of
tiles and available different sizes made too many options to consumers. Quality of tiles of
AGL is very good and it keep customers satisfied with their products. Growing their
domestic market. Young fashion-conscious population. Cheap and easy availability of
labour in their manufacturing plant area. Availability of low-priced gas and clay.
Ready availability of raw material. Use of global manufacturing technologies which
are trending in ceramic industries. Increased responsiveness to branding and promotion
activities. Increased preference for premium aesthetic products for high end
infrastructures.

• Weakness

Asian Granito as a brand is less famous when we compare it to Kajaria or Nitco

in the Indian Market. It is a lesser experienced company as compared to its competitors.
Sometimes company faces more quality complains by dealers. Slow decisions can harm
the growth of company. Sober designs are not available like Simpolo and Qutone
Company has less designs for architects. Dealers are facing pricing issue. Dealers are
complaining about partiality. Banding issue in tiles manufactured at Himmatnagar plant.
Erratic power supply by government. Sometimes non-availability of standard and
uniform quality raw materials. Large unorganised sector is also a weakness.

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• Opportunities

It can strengthen its distribution network to lay more emphasis on its exports.
Mergers and acquisitions can also be adopted to build a strong global brand. AGL should
focus on developing designs which can attract customers and architects. Train staff for
better conversations with dealers and distributors. Increase network of dealers and sub
dealers. Provide best quality product than competitors. Fixing the banding issues in tiles
.Host of Government initiatives: Housing for AH, Pradhan Mantri Awas Yojana
(Urban), Smart Cities Mission, Swachh Bharat Abhiyaan, Atal Mission for
Rejuvenation & Urban Transformation (AMRUT). It has Greater purchasing power.
Rapid urbanisation. Growing number of dual income nuclear families with high
aspirations. Steady growth in infrastructure Threats. Low cost tile import from China.
Volatile fuel costs. Volatile foreign currency rates. AGL has ability to compete their
competitors.

• Threats

It is facing strong competition from local brands. Globally also, many brands are
hampering growth of Asian Granito. Keep good relations with dealers and distributors.
Fix quality issue and banding issue in tiles. Make the dealers aware about your
executives, according to our survey many dealers and sub dealers doesn’t know
company salesmen whom they can contact them. Improve staff conversations with
dealers and distributors. Improve supply chain management, many dealers are facing
logistic facility problems. Fix the pricing issue which is most facing problem by all
dealers. Sometimes dealers are facing partiality so fix it for better future. It all can be
threats for AGL growth in global and domestic market.

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Task and It`s methodology

Name of the company Asian Granito India Limited

Tagline Beautiful Life
Address of the company 202, Dev Arc, Opp. Iskcon Temple S.G.
Highway, Ahmedabad, Gujarat 380015
Name of Guide of the company Mr. Prishit Shah
Designation of Guide of at company Assistant General Manager (Gujarat)

Name of store of work AGL TILES - Company Display Centre

Address of store Gota Cross Road, Nr, Sarkhej - Gandhinagar
Highway, Ahmedabad, Gujarat 382481

My Daily work Taking survey to identifying market

Meeting with dealers and distributors
Meeting with builders
Meeting with architects
Sales and Marketing

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Annexure

Questionnaire

Survey on Dealer Distribution at AGL in Ahmedabad

1. Shop Name:

2. Dealer Code:

3. Shop Owner Name:

4. Shop Owner Contact Number:

5. Address (Location):

6. Do you sell AGL tiles?

7. If yes then what is good in that and if no then why?

8. Which sizes are you prefer?

9. Which type of tiles you prefer?

10. Which types of tiles customers want most?

11. Which problems you facing in tiles?

12. Prices are reliable for you or not?

13. If you using other brand instead of AGL then what is your perspective behind using that brand?

14. What are plus points of using AGL tiles?

15. What are weak points of using AGL tiles?

16. General feedback

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• http://www.icctas.com/import-and-export-of-ceramic-tiles.htm
• http://www.icctas.com/geographical-presence-of-ceramic-tile.htm
• https://www.indiafilings.com/learn/gst-rate-for-ceramic-products/
• https://www.ceramicworldweb.it/cww-en/statistics-and-markets/world-production-and-
consumption-of-ceramic-tiles-2017/
• http://www.ceramic-research.com/articles_03.html
• https://www.business-standard.com/company/asian-granito-27798/information/company-
history
• https://www.moneycontrol.com/bse/shareholding/shp_promoters.php?sc_dispid=AGI04&clas
sic=truehttps://www.moneycontrol.com/financials/asiangranitoindia/ratios/AGI04
• https://www.moneycontrol.com/financials/asiangranitoindia/capital-structure/AGI04
• https://www.business-standard.com/company/asian-granito-27798/info
• https://www.indian-ceramics.com/wp-
content/uploads/2018/10/Ceramics_Industry_Report.pdf

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Survey on Dealer`s and Distribution Network at Asian Granito India Limited

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