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Market research to identify strategies for Italian companies to enter into Indian ceramic tile market ICE- Italian Trade Agency December, 2013

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Market research to identify strategies for Italian companies to enter into Indian ceramic tile market

ICE- Italian Trade Agency

December, 2013

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Market research on ceramic tile market in India

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Statement of Limiting Conditions

This report has been prepared by Ernst & Young LLP (hereinafter referred to as “Ernst & Young” or “EY”) for ICE- Italian Trade Agency (hereinafter referred to as “ITALIA” or “the Client”) to assist in market research to identify strategies for Italian companies to enter into Indian ceramic tile market.

The inferences / analyses made by Ernst & Young LLP (EY) in this report are based on information collated through primary research, secondary research and our knowledge about the project and its objectives. EY has taken due care to validate the authenticity and correctness of the information from various sources, however, no representations or

warranty, expressed or implied, is given by EY or any of its respective partners, officers, employees or agents as to the accuracy or completeness of the information, data or opinions provided to EY third parties or secondary sources.

Nothing contained herein, to the contrary and in no event shall EY be liable for any loss of profit or revenues and any direct, incidental or consequential damages incurred by ITALIA or any other user of this report.

In case the report is to be made available or disclosed to any third party, this disclaimer along with all the limiting factors must be issued to the

concerned party. The fact that EY assumes no liability whatsoever, if for the reason any third party is led to incur any loss for acting upon this report, must be brought to the notice of the concerned party.

© Ernst & Young LLP, 2013

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Table of Contents

Executive Summary .............................................................................. 3

Project Background ........................................................................ 7 1

Objective .................................................................................. 7 1.1

Project Approach ...................................................................... 7 1.2

Indian ceramic sector .................................................................... 11 2

Overview ................................................................................. 11 2.1

Organized & unorganized ceramic tile market in India ............... 12 2.2

Import tariff structure ............................................................. 14 2.3

Industry drivers for ceramic tiles in India ....................................... 17 3

Growth in High Networth Individual (HNI) population ................. 17 3.1

Real estate boom .................................................................... 18 3.2

Rising disposable income ......................................................... 20 3.3

Growth in infrastructure sector ................................................ 21 3.4

Opportunities for Italian companies ............................................... 23 4

Primary Opportunities ............................................................. 23 4.1

Secondary Opportunities ......................................................... 24 4.2

Target market and demand for Italian tiles ............................... 25 4.3

Presence of Italian and other foreign companies in India ........... 26 4.4

Issues faced by Italian ceramic tile companies .......................... 28 4.5

Primary research insights ........................................................ 29 4.6

Strategies to enhance market presence in India ............................. 32 5

Strategies ............................................................................... 33 5.1

SLOT analysis & future outlook ................................................ 39 5.2

Annexures .................................................................................... 42 6

List of architects/ interior designers ........................................ 42 6.1

List of real estate firms ........................................................... 49 6.2

List of ceramic tile distributors/importers ................................ 56 6.3

List of companies interviewed/ interacted ................................ 62 6.4

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Executive Summary

Objective and Approach of the project

ICE- Italian Trade Agency (ITALIA) appointed Ernst & Young LLP (EY) with

an aim to study the Indian ceramic tile sector and thereby suggest

strategies for Italian tile companies to enhance their presence in Indian

market.

Study was based on primary and secondary research, which was

undertaken to understand distribution channel in ceramic tiles sector,

market influencers and opportunities for Italian companies in India etc.

Interaction was done with key stakeholders including ceramic tile

manufacturers, distributors, and traders, importers and with real estate

firms & architects / interior designers.

Opportunities in ceramic tiles

Indian tile industry was estimated to be EUR 2,019 million in 2012 and is

growing at a rate of 16%. India has a strong domestic tile manufacturing

market. Organized sector accounts for 40% of the total tile market and

unorganized sector accounting for 60%. Import of ceramic tiles to India

attracts a basic custom duty of 10%. High import duty is imposed on tiles

to protect the domestic sector.

Increasing demand for tiles in India can be attributed to increase in HNI

(High Networth Individual) population, boom in real estate sector,

increase in disposable income and growth in infrastructure sector.

The key features of Indian ceramic tiles market are:

► Tiles consumption in India has increased over the years.

► There is a very strong domestic ceramic manufacturing market in

India which offers a wide range of products.

► The market for high-end ceramic tiles such as Italian tiles is at a

nascent stage and has low consumption in per square feet (sq ft)

terms.

► The high end tiles have direct competition from marbles, which are

preferred by Indian consumers.

► The Italian manufacturers of expensive tiles need to attract

customers through innovative marketing, by creating awareness

among target customers and by building strong relations with

importers and distributors.

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Strategies which Italian tile companies could adopt in order to enhance

their presence in India are:

a) Short term initiatives

These strategies focus on initiatives which could be undertaken in the

short-term:

► Collaborate with architects/interior designers, real estate firms and

ceramic tile importers/distributors to build relationship with

people/ companies who influence and drive the market.

► Train the representatives/ sales agents of Indian distributors,

importers and retailers in order to market the product in an

effective way, to the end customers.

► Attend and participate in various promotional events in order to

increase visibility of the products. Such activities include:

► Attend buyer seller meets and trade fairs to meet top

architects, real estate and hospitality firms

► Organize delegation visits of Italian tile companies to India in

association with Italian Embassy, for interaction with

architects and real estate firms

► Sponsor project launches, product launch parties exhibitions

to interact with HNI customers.

b) Long/ medium term initiatives

This is aimed at establishing Italian ceramic tiles as a strong brand in the

long run.

► Set up exclusive retail showrooms in India in cities like Delhi,

Mumbai, Pune, Bengaluru etc., in collaboration (exclusive tie-ups or

limited tie-ups) with big Indian ceramic companies.

► Set up “Italian boutiques” in major metro cities such as Mumbai,

Delhi and Bangalore, in association with Indian interior design/

distribution firm. The objective would be to display new designs,

trends and use of ceramics across various real estate

developments.

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Prospective partners for Italian companies

List of architects/ interior designers, real estate firms, ceramic tile

distributors and importers with whom Italian companies could collaborate

has been given in Annexures 6.1, 6.2 & 6.3 respectively.

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1. Project Background

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Project Background 1

Objective 1.1

The study for “Market research on ceramic tiles market in India” is

initiated by ICE- Italian Trade Agency (ITALIA) to enhance the presence of

Italian ceramic companies in India.

Presently, demand for high value ceramic products in India is met by

imports from various countries such as Italy, Germany, Spain, Turkey,

Portugal, China etc. Growth in Indian economy and increase in luxury

lifestyle has led to an increase in demand for these high-end products. The

Agency, thus wants to understand various opportunities for Italian

ceramic tile companies in India.

The broad objectives of the study can be summarized as follows:

Understand opportunities for Italian ceramic companies in India

Identify entry options for Italian companies in India

Provide information on potential influencers/ buyers for Italian

ceramic tiles companies

Project Approach 1.2

EY focused on understanding the:

Indian market for ceramic tiles -types of products, manufacturers,

customer preferences, influencers etc.

Italian products - demand, challenges faced , operating model in

India

Key stakeholders- Architects and interior designers, real estate

firms, importers & distributors, Italian & Indian ceramic companies

These assessments were done through primary and secondary research.

The broad approach adopted by EY is depicted in Figure 1.1.

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Figure 1-1 Approach

EY interacted with more than 15 players in India which included ceramic tile manufacturers, importers/ distributors, architects/ interior designers and real estate firms.

Importers & distributors provided inputs on the distribution network in

India, challenges faced while importing from Italy, customer demands etc.

Architects & real estate firms are the decision makers and influence the

preferences of HNI’s to a large extent. Interaction with them helped in

developing an understanding of HNI and niche market, their product

preferences, procurement model of ceramic tiles etc.

Manufacturers gave the perspective of Indian market conditions and

consumer demand for ceramic tiles.

Figure 1-2 Primary research sample

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A two stage methodology was used for gathering information for the

primary research, viz.

► Sending questionnaire electronically via e-mail to the identified

respondents

► One-on-one discussion with identified players for duration of 0.75

to 1 hour.

However we received only 1 response via e-mail questionnaire. Therefore

our primary mode of gathering information was face to face meetings.

Within the questionnaire, we included both objective as well as subjective

questions to differentiate a general opinion from a specific one. Open-

ended questions were also used to gather qualitative information usually

specific to each respondent in order to bring out clear perspective of the

respondent.

EY visited Cersaie (23rd-27th September 2013) conference in Italy where

it presented opportunities for Italian ceramic tile companies in India based

on initial primary and secondary research. We also interacted with several

Italian companies to understand the challenges faced by them in trading

with the Indian market.

EY also visited ET Ace Tech, the construction exhibition in Mumbai (17th-

20th October 2013) in order to interact with architects, ceramic tile

importers and distributors.

Secondary research was carried out simultaneously to study the presence

of Italian companies in India, market size, growth drivers in ceramic

sector and government regulation & policies that affect the industry.

The report was prepared based on responses received, secondary

research and analysis undertaken thereafter.

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2. Indian ceramic tile sector

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0.4 0.5 0.5

0.6 0.7

0.8 0.9

1.1

1301.1 1496.2

1737.5 2019.0

2344.3

2722.8

3162.8

3673.8

0.0

500.0

1000.0

1500.0

2000.0

2500.0

3000.0

3500.0

4000.0

0

0.2

0.4

0.6

0.8

1

1.2

2009 2010 2011 2012 2013 E 2014E 2015E 2016E

Volume (billion Square meter (bn sqm)) Value (EUR million)

Indian ceramic sector 2

Overview 2.1

Ceramic tiles market in India is growing at a fast pace owing to the

booming real estate sector along with the rising disposable income of the

consumers. India has established itself in the global market due to strong

and growing domestic tile manufacturing industry.

India is the third largest producer as well as consumer of tiles in the

world. Indian tile market accounts for 6.3% of the global output. In the

year 2012, Indian tiles market was estimated at EUR 2019 million and is

expected to increase to EUR 3,673 million by 2016. Despite a slowdown in

the economy, it is growing at a rate of 16%. Figure 2.1 depicts the

increase in Indian tile market from 0.4 bn sqm (billion square meter) in

2009 to 0.6 bn sqm in 20121.

Figure 2-1 Market size of tiles in India

Source: Netscribes, First Call India Equity Advisors, Indian Council of Ceramic Tiles &

Sanitaryware (ICCTAS)

Investments in the last 5 years in this sector amount to over EUR 591.4

million. Around 90% of demand for tiles in India comes from fresh

construction requirements.

India imported tiles worth EUR 0.25 million in 2012, with Italy being the

biggest importer to India, followed by China and Spain. Country’s exports

stood at EUR 0.27 million in the same year with maximum percentage

exported to Sri Lanka.

1 Netscribes, First Call India Equity Advisors, ICCTAS

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Source: Netscribes, Kajaria

Organized & unorganized ceramic tile market in India 2.2

The Indian tile industry is divided into organized and unorganized sector.

Figure 2-3 Market segmentation of organized & unorganized ceramic tile market in India

Source: Indian Council of Ceramic Tiles & Sanitaryware (ICCTAS)

2.2.1 Unorganized sector

State of Gujarat is the national hub for ceramic tile market in India, with

production concentrated in Morbi, Wankaner, Thangadh, Bamanbor,

Himatnagar and Shapar Veraval areas in Rajkot and Porbandar districts.

The industrial cluster of Morbi in Gujarat accounts for over 70% of total

production of ceramics produced in India. There are over 500

manufacturing units in the area and it gives direct and indirect

employment to over 600,000 people across India2. Morbi also has offices

and representatives from Italian & Spanish tile machinery manufacturers

and design studios who provide technical assistance and training to tile

2 Morbi ceramic industry database

Figure 2-2 Indian tile export import data

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manufacturing companies. For example, Calabria an Italian company has

set up its office in Morbi to provide after sales service to its customers.

Manufacturing units in Morbi have set up digital printing and other

technically advanced machinery which has led to production of improved

quality ceramic tiles in India.

Figure 2-4 Ceramic clusters in India

Khurja, in the state of Uttar Pradesh, is one of the largest producers of

ceramic products such as cutlery and sanitaryware. A lot of ceramic

products produced are exported worldwide from here. Other clusters at

Udaipur, Palpara and Cuddalore are also known for their ceramic pottery

products.

State of Andhra Pradesh has various small scale refractory

manufacturing units. Presence of natural mineral resources such as fire

clay, ball clay etc. has supported the growth of these units.

2.2.2 Organized sector

Current size of the organized sector in India is about EUR 851.65 million3

and comprises of around 14 major players. It accounts for nearly 40% of

the total industry. Five major companies (H&R Johnson, Kajaria Ceramics,

Nitco Tiles, Somany Ceramics and Asia Granito) account for over 80% of

3 Netscribes, First Call India equity Advisors, ICCTAS

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17.5%

9.1%

13.5%

14.0%

20.6%

25.3%

Others

Asian Granito

Somany Ceramics

Nitco Tiles

Kajaria Ceramics

H&R Johnson

the organized market. Some other players are Murudeshwar Ceramics,

Orient & Bell Ceramics, Euro Ceramics etc.

Figure 2-5 Market share of key players in organized sector (by value), 2012

Source: Netscribes, First Call India Equity Advisors, ICCTAS

These companies also have their manufacturing units in Gujarat. It has

been observed that big players such as Kajaria & Somany Ceramics, have

reduced the imports of tiles from various countries. These companies are

now promoting their own manufactured products in India. These players

have also outsourced manufacturing of their products to players in Morbi.

For instance, Somany Ceramics outsources around 43% of its products.4

Import tariff structure 2.3

Importers have to pay the following duties to government on import of ceramic tiles to India:

► Custom duty

► Education cess and Higher education cess

► Countervailing duty (CVD) & additional CVD

Chapter 69 of Customs Tariff for financial year 2013 mentions the basic

custom duty rate that is imposed on import of ceramic products in India.

Various duties and taxes imposed on import of ceramic tiles are:

4 CRISIL Research

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Figure 2-6 Import tariff structure on ceramic tiles

Customs Duty Rate of Duty (Tariff) Calculated on

Basic customs duty 10%

Domestic value of the imported goods at official exchange rate- assessable value

Education cess 2%

Aggregate duties of customs Secondary and Higher Education Cess 1%

Other duties Countervailing Duty (CVD) 12% Assessable value plus basic

customs duty Additional CVD 4%

Total duty 28.852%

Source: Central Board of Excise and Customs

Government of India, imposed a provisional anti-dumping duty of EUR 1.62/ sqm on imports of ceramic tiles from China in 2009, to protect the domestic market. This has led to decline of imports from China in the subsequent years.

However such a duty is not applicable on import of ceramic tiles from Italy.

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3. Industry drivers for ceramic

tiles in India

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Industry drivers for ceramic tiles in India 3

Demand for high value ceramic products in India can be attributed to the following factors:

► Growth in HNI population

► Real estate boom

► Rise in disposable income

► Growth in infrastructure sector

Growth in High Networth Individual (HNI) population 3.1

India registered the second highest growth of 22.2% in its high networth

individual (HNI) population in 2012 after Hong Kong (35.7%).5 It grew at

double the global average rate of 9.2% in 2012. Going forward, the global

HNI wealth is expected to grow by 6.5% annually over the next three

years.

A survey by Knight Frank- the Wealth Report 2013, demonstrated that

among the top 25 cities, which are home to HNIs, Asia will register the

fastest growth in HNIs population between 2012 and 2022. This growth in

Asia will be led particularly by India and China. Around 8 Asian cities are

in the top 25 cities with HNI population in the world.

Figure 3-1 Top 8 Asian cities by HNI population

Top 8 Asian cities by HNWI population

City Ranking 2012 2022 Change (%)

Tokyo 3 5,440 6,763 24%

Beijing 6 2,285 5,262 130%

Mumbai 7 2,105 4,988 137%

Hong Kong 8 3,205 4,780 49%

Delhi 11 1,945 4,278 120%

Osaka 13 2,970 3,813 28%

Shanghai 14 1,415 3,704 162%

Singapore 23 1,345 1,930 43%

Source: Survey conducted by Knight Frank

5 World Health Report 2013

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Mumbai and Delhi are expected to see more than 100% growth in HNI

population. This segment is the key target market for Italian tiles. Growth

in this segment would lead to surge in Italian products demand in coming

decade.

Real estate boom 3.2

Real estate contribution to India’s GDP stood at 6.3% in 2013 and is

expected to double by 2025. Construction sector (including townships,

housing, built-up infrastructure & construction-development projects) has

attracted a cumulative foreign direct investment (FDI) worth EUR 16,493

million from April 2000 to June 2013.

The sector comprises of four sub-sectors- residential, hospitality, SEZ and

commercial.

► Residential

Housing contributes to 5-6% of the country’s GDP6. In India EUR 1182.8

million worth of luxury houses were launched in 2012. Approximately,

5,000 luxury and ultra-luxury houses, above EUR 0.6 million in Mumbai

were launched.

6 Bombay Stock Exchange

Figure 3-2 Luxury real estate segmentation

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Figure 3-3 Luxury housing and real estate development

concentration in India

According to Cushman & Wakefield (a commercial real estate brokerage

firm), the sale of luxury homes in big cities like Mumbai, Pune, Kolkata,

Bangalore, Chennai and Gurgaon is recording an all-time high with

around 6-23% yearly price rise in the segment. Italian companies could

concentrate on marketing their products in these cities particularly in

order to reach out to the high end target market.

► Commercial

Commercial sector in India is also booming in cities like Mumbai, Delhi, Chennai, Bengaluru, Hyderabad and Pune.

► Hospitality

India’s luxury hospitality sector is growing at a rapid pace, fuelled by large

inflow of overseas tourists in the country. The hospital services market in

India is expected to grow at a CAGR of around 21% during 2010-20157.

Increasing number of global luxury hotels are keen on entering Indian

hospitality sector.

7 Indian Hospital Services Market Outlook by RNCOS, Business consultancy firm

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3,442 3,936

4,417

5,309 6,058

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

EUR

mill

ion

International luxury hospitality brands such as W and St. Regis from

Starwood Hotels and Resorts Worldwide Inc. are planning their entry in

India. Starwood has doubled its luxury room count to meet growing

demand for luxury travel in the last five years. Kempinski Hotels SA, a

European luxury hospitality brand is now eyeing five luxury properties in

India in Udaipur, Mumbai, Hyderabad and a city in Kerala over the next

few years.

► SEZ’s

There has been a rapid increase in the number of upcoming SEZ’s in India.

The increase in these real estate sub sectors has fuelled the demand for

imported Italian products.

Rising disposable income 3.3

Disposable income plays a pivotal role in determining the growth of real

estate and demand for luxury products. Disposable income of Indians has

increased steeply and is also follow same trend in future.

Source: Reserve Bank of India (RBI)

The share of spending in basic goods (food, beverages & tobacco and

clothing & foot wear) in private final consumption expenditure is expected

to decline substantially to 28.0% in FY20, versus 40.3% in FY10. However,

share of discretionary spending (rent, fuel & power, furniture, medical

care, transport & communication, recreation & education) is projected to

increase considerably8. This expenditure is triggered by want of

comfortable and luxury life style.

8 India’s Macro economy Outlook report by D&B

Figure 3-4 Personal disposable income

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Growth in infrastructure sector 3.4

Increasing urbanization in India has shifted GoI’s (Government of India)

focus on infrastructure sector. FDI into the construction (infrastructure)

activities during the period stood at EUR 1630 million9. A number of

airports and metro stations have come up in the last few years in India like

in Bengaluru, Delhi and Hyderabad. Up-gradation of airports in cities like

Mumbai has fuelled the demand for ceramic tiles.

9 Associated Chambers of Commerce & Industry of India (ASSOCHAM)

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4. Opportunities for Italian

companies

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Opportunities for Italian companies 4

Over the last few years, domestic ceramic market in India has become

self-sufficient and manufactures variety of competitive products. Advent

of Chinese products and low-end products from other countries has

further made the ceramic market extremely competitive.

The ceramic tiles market in India is still growing. Tiles are being used as

replacement for quality marbles. Italian ceramic tiles due to high pricing

have a very niche market in India.

In such a competitive market, Italian companies will have to create unique

demand for their products in near future and then look at sustaining this

demand in long term, to sustain Indian market. Figure 4-1 shows the

opportunities for Italian companies in India, across ceramic tile industry.

Figure 4-1 Ceramic industry value chain & opportunities for Italian companies

Primary Opportunities 4.1

These are primary opportunities for Italian tile companies which could be

reaped in immediate future. These opportunities are in the later part of

the value chain. The Italian companies can continue the model of selling

their products through distributors’ and agents’ channel in India.

There are two models in India which form the contact point for customers:

► Direct distribution

Indian tile companies have their exclusive showroom/ display

centers in cities like Delhi, Mumbai, Kolkata, Pune, Bengaluru etc.

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This is an expensive model as it requires setting up of showrooms

and deployment of staff and sale agents.

► Indirect distribution

It is the most prevalent model in India. Various tile manufacturers

across the world are using this model to enter India. The tile

manufacturing companies sell the product to importers,

distributors and agents. These distributors have greater reach in

the market across the country. The limitation of this model is that

companies lose direct connect with their clients. They do not get an

understanding of clients’ demands and their products are at times

not marketed in the correct way.

Most of the companies in unorganized sector follow indirect distribution

system, while the organized sector companies follow both direct and

indirect distribution model.

Italian companies should leverage the strong network of distributors and

dealers in India to penetrate into the market by collaborating with them.

This is one of most effective and less expensive model for entry of Italian

tile companies into India.

From long term perspective Italian companies may have to open retail

showrooms, especially in metro cities like Delhi, Mumbai, Bangalore,

Chennai and Kolkata, in order to develop themselves as a “BRAND”.

Secondary Opportunities 4.2

Italian companies could also enter into the manufacturing and processing part of the value chain in order to manufacture products as per Indian customer requirements.

► Outsource manufacturing

Morbi is one of the largest tile manufacturing hubs in Asia with over

500 units. Indian units import almost 99% of their machinery from

Italy, Spain and China10. Their machineries have improved quality

of ceramic tiles in India and reduced manufacturing cost. Italian

companies can outsource the manufacturing of ceramic tiles to

India in order to take advantage of availability of cost effective

labor and abundant raw material like lignite, clay and natural

minerals like feldspar.

10 EY research

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► Design support

European designs and advanced technology is in high demand in

India. The designers and design studios specifically focus on making

ceramic tiles more attractive and user friendly. Indian tile

manufacturing companies take support from European countries

such as Spain and Italy for designs, inks, machinery and other

technologies. There is a huge opportunity for Italian design and

technology firms in ceramic tile sector in India.

Wandegar of Torrecid Group, a Spanish firm provides technology

solutions (ink, machinery etc.) to several ceramic companies in

India. It also participated in one of the biggest construction trade

fairs in India- ET Ace Tech in Mumbai.

Target market and demand for Italian tiles 4.3

In 2012, Indian tile industry was estimated to be EUR 2022.5 million11.

Indian tile market can be divided into three segments based on their

product preference and spending capacity:

Source: Credit Suisse Annual Reports 2012 and EY research

Niche market

Luxury tile market is niche (pegged at ~EUR 120 million)12 and

comprises 5% of the total Indian tile market. Demand for these tiles

(above EUR 15 per square feet) is majorly met by imported Italian

and Spanish tiles. These consumers are the “TREND SETTERS” as

11 ICCTAS 12 EY research

Figure 4-2 Market segmentation for tiles

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they go for products which are unique and exclusive. HNI’s (High

Networth Individuals) and luxury real estate developers are the end

consumers who can afford high end Italian ceramic tiles that range

more than EUR 15 per square feet and hence is the target market

for Italian tile companies.

Cost & Quality sensitive market

People in this category buy ceramic tiles priced between EUR 4- 6

per square feet. This segment of people goes for products which

are reasonably priced & durable and they occupy 30% of the total

pie. They follow the trends set by niche luxury class and can be

called as “FOLLOWERS”.

The upper end of this segment also uses Italian niche/ luxury

market products in limited areas such as bathroom, kitchen and

façade. Italian tile companies can target this upper medium class

segment who can afford Italian tiles in the range of EUR 6-15 per

square feet. For this segment extensive marketing and branding of

Italian tiles is required in order to apprise the customers about

technical specification as well as aesthetic features offered by

Italian products as compared to domestic tiles & equally priced

marbles.

Cost sensitive market

People in this category generally buy ceramic tiles priced between

EUR 1.5-4 per square feet. Demand for this segment is met by

domestic players only. These consumers are price sensitive and are

ready to compromise on the quality. About 65% of the Indian tile

market falls in this segment.

Presence of Italian and other foreign companies in 4.4India

Italy acknowledges India as a potential and viable market for its ceramic

products. Italian companies have adopted various models to enter the

Indian market. Some of these models are:

4.4.1 Partnership/Joint venture between foreign and Indian tile companies

Italian ceramic tile manufacturers have partnered with various Indian tile

companies because of cheap labor availability in India and high production

cost in Italy.

Some recent partnerships of Indian and Italian tile companies are:

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27

Joint venture of Panaria group with Asian Granito

In August 2012, Italian ceramic tiles company Panaria group

Industrie Ceramiche SpA formed a 50:50 joint venture company

with Asian Granito India viz. Panaria Asian Pvt. Ltd to tap the high-

end luxury tiles market in India. These products will be sold under

the new brand; Bellissimo – Stile Italiano. Company’s strategy is to

work on B2B and B2C segments in the Indian luxury tiles market so

as to have majority of Class A+ dealers. The company intends to

build connects directly with the big real estate firms and high end

customers.

Somany Ceramics partnership with Fiandre Group

Somany Ceramics, the walls and floor tiles manufacturer partnered

with Italy's IRIS Graniti Fiandre Group in 2012, for manufacturing

and distribution. As per this venture, Fiandre will look at a

distribution arrangement with Somany Ceramics to sell Active

Clean Air & Antibacterial ceramic products in India, through

Somany Ceramics’ 1400 strong distribution network. The Italian

group has fixed a transfer pricing for Somany ceramics and thus

there will be no revenue sharing.

Two of Italian and Spanish companies are evaluating business

proposition with Somany Ceramics, for joint manufacturing of

products. This will offer Italian designs to them at cheaper price by

manufacturing in India.

Foshan NewMay Ceramic Co Ltd, a Chinese tile company signed a

Memorandum of Understanding (MoU) with Ahmedabad-based Dhan

Mercantile (P) Ltd. for setting up a vitrified tile manufacturing unit

of upper end tiles in Linch village of Mehsana district in Gujarat.

Dhan Mercantile's sister concern Shell and Pearl Ceramics Ltd

imports the Chinese company’s tiles and markets them in India.

Nitco Tiles Ltd. entered into two contract manufacturing

agreements (CMA) with Chinese companies-Nanhai Shangyuan

Oulian Construction Ceramics and Foshan Lungo Ceramics in 2004

and 2006 respectively. The CMA provided for uninterrupted supply

of tiles to Nitco in order to meet the increasing demand for tiles in

India. According to the CMA with Fushan Lungo Ceramics, Nitco

Tiles agreed for a minimum offtake of three million sq mts of

vitrified tiles in the first year, 4.5 million sq mts in second year and

six million sq mts in the third year.

Regency Ceramics of India, collaborated with Italian Welko

Industriale Spa for supply of plant and machinery. It is in the

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process of establishing manufacturing lines in China and Italy to

cater to Indian market.

4.4.2 Collaboration with distributors

Several Italian companies have tied up with importers/ distributors/

agents in India. Some of these tie ups are exclusive while some have tie

ups with multiple companies.

Italian companies like ABK and Cisa Ceramiche have tied up with

Milagro Importer in India.

Ceramiche Piemme, Sant’Agostino etc. also have identified some

distributors for importing and selling their products in India.

Italian tile company Atlas Concorde has a 40:60 joint venture with

construction and accessories firm Hybrobath- as its exclusive

distributor, which has exclusive stores in Delhi and Bengaluru.

One of the Spanish tile company has associated with an Indian

company to set-up Décor 8 a boutique showroom featuring this

company’s products. The showroom is located in upmarket area of

Mumbai and showcases luxury tiles from Spain. This showroom gets

footfall of only specific customers and send special invites to

architects, designers, HNIs, builders etc.

4.4.3 Retail showrooms

Italian tile companies Cooperativa Ceramica D’IMOLA has its own

showroom in India which exclusively displays and sells its products.

Presently, not many Italian tile companies have their own studios and

showrooms in India.

Issues faced by Italian ceramic tile companies 4.5

Rising competition from other countries and niche target market are the two main factors impeding the growth of Italian companies in India. Though Italian companies are trying to enter India, there are several

issues faced by them.

► Domestic competition

Indian ceramic manufacturing market poses stiff competition to Italian tile companies. The import of machinery from Europe and China has helped in improving the quality of ceramic tiles manufactured in India. Tile market in India offers wide range of products and is competitive both in price and quality. The domestic players have a very strong distribution network

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across the country. All these factors make domestic tile market a tough

competition for Italian tile companies.

► International competition

Indian tile market has presence of Chinese, Spanish, Turkish, Malaysian and German tiles apart from Italian tiles. Tiles from these countries cater to both low & medium end customer (Chinese & Malaysian tiles) and to high end clients (Spanish & German tiles). In 2008, China was the largest importer to India due to the huge price difference that existed between Chinese and domestic tiles.

Subsequently, imports from Italy have increased by 11% from 2009 to

2012. However Italy still faces competition from Spanish products particularly due to the niche market that exists for luxury tiles in India.

► Niche market

Indian luxury tile market valued at ~EUR 120 million13 is relatively small.

The target market for these products is geographically dispersed. Italian

companies are trying to identify the correct distributors & importers

through whom they can connect largely with these customers.

► Presence of substitute

The cost of high end Italian tiles in India is directly comparable to cost of

marbles. This makes customers choose marbles and other natural stones

over ceramic tiles in India. Architects are of the view that majority of

people prefer using natural stones instead of paying an equal price for

Italian ceramic tiles in India. Hence to make this market bigger,

consumers will have to be made aware about the unique uses and benefits

of tiles through marketing and awareness activities.

Primary research insights 4.6

Interaction with tile manufacturers, importers, distributors, architects & real estate firms helped in developing an understanding of the tile sector. Their inputs have been summarized in the following table:

13 EY research

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Overall assessment

Key

in

pu

ts g

ain

ed f

rom

pri

mary

researc

h

Price & market

► Demand for Italian ceramic tiles is limited in India due to their high cost.

► HNI’s & real estate firms use Italian tiles mainly in bathrooms & balconies.

Quality ► Italian ceramic tiles are of very fine and high quality and the Indian luxury

segment likes to go for Italian tiles in comparison to other imported tiles.

Competition

► Preference for Chinese and domestic tiles has increased over the years.

► People like going for marbles instead of tiles which are only a little more

expensive.

Distribution network/ model

► Architects, real estate firms & importers/ distributors have strong connects

with each other.

► Maximum importers have a dealer distribution model. Very few have their

own retail showrooms.

Issues/ Recommendations

► Italian companies should be more supportive and participative during

promotional activities.

► They should provide free samples, discounts & media coverage to

importers/ distributors in trade fairs & exhibitions.

Architecture firms- Italian companies will have to price tiles

reasonably to capture Indian market

A prominent Tile importer Big Italian companies didn’t provide us any support in ET Ace

Tech exhibition in Mumbai 2013.

A real estate firm-

No tile can match the look & feel of an Italian tile

An Importer- Customers want to use marbles to add a luxury value.

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5. Strategies to enhance

market presence in India

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Strategies to enhance market presence in India 5

Increasing presence in India in ceramic sector requires targeting the right audience through right strategy. The distribution system of ceramic tiles in India is given below:

Figure 5-1 Ceramic tile distribution system in India

HNIs, real estate, commercial, hospitality firms are the end customers of

Italian ceramic tiles. They approach architects and interior designer firms

for design of buildings, office space, hotels etc. These people assist their

clients in selection of various materials to be used for construction.

Architects have tie ups with distributors, contractors and Italian

companies for their tile needs. They procure tiles either directly from

Italian tile manufacturing companies or through importers, retailers and

distributors.

Large real estate firms such as Emaar, Lodha, Oberoi, DLF etc. have their

own design and product management teams. These teams influence the

design and product decisions of large real estate firms.

Thus people who influence the market are:

► Architects/ Interior designers

► Real estate firms

► Commercial & hospitality sector

India majorly has a dealer distribution system and maximum of the products reach the end customer through these distributors

In order to penetrate into the Indian market, Italian companies must look

at building connects and long term relationship with architects/ interior

designers and real estate, commercial and hospitality firms which are into

luxury construction.

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Strategies 5.1

To maintain the momentum of growth achieved so far by Italian

companies and to further enhance their presence in India, some of the

following initiatives could be taken in short and medium/long term:

Figure 5-2 Strategies for Italian tile companies

5.1.1 Collaborate with architects/interior designers, real estate firms and ceramic tile importers/distributors

► Architects/ interior designers and real estate firms are the key

influencers in Indian market. Collaboration with them will help in

Italian companies in expanding their product reach.

► Their collaboration with Indian tile distributors can be both

exclusive and non-exclusive where the distributor can either sell

only a particular Italian company’s tiles or sell both Italian and

other country’s tiles along with the domestic products.

SpaceBiz Solutions Pvt. Ltd. in India has an exclusive showroom for

Spanish ceramic tile company Greco Gres. The firm only imports and

distributes Greco Gres’s ceramic tiles and has a long term agreement and

relationship with the Spanish company. The company also exhibited a stall

in the renowned construction exhibition ET Ace Tech in Mumbai in October

2013, where it marketed and promoted its products.

Indian distributors prefer partnering with an Italian company exclusively.

However Italian companies choose associating with multiple distributors

across India to reach the scattered market. This leads to sour relationship

between them. Italian companies could focus on exclusive tie ups with

distributors who have penetrated reach in India.

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► Italian companies could also tie up with real estate firms for

specific projects in order to promote their products amongst the

Indian customers and market influencers.

► BPTP , India’s real estate firm tied up with the Italian Luxury Brand

IPE Cavalli in order to promote branded villas in Gurgaon.

► Raheja developers tied up with luxury brand Versace for launch of

luxury apartments known as “Versace Homes” in Gurgaon.

► Italian couturier Giorgio Armani has exclusively designed an

apartment for Lodha developers in Mumbai where in all Italian tiles

and marbles have been used.

Such connects could be formed through various marketing and

promotional events in India. Also Italian companies could have a

representative regularly visit India to meet these architects and

distributors and showcase their range of products through catalogues,

presentations etc.

The list of architects/ interior designers and real estate firms who deal

with the luxury market of India is given in Annexure 6.1 & 6.2

respectively. List of leading importers and distributors who deal with

imported tiles in India is given in Annexure 6.3.

5.1.2 Train representatives/ sales agents of Indian distributors, importers and retailers

HNI’s and top real estate developers do not necessarily go to distributors,

importers and various showrooms for selecting tiles. They invite

representatives of these companies to showcase their range of products.

It has been observed, the representatives/ sales agent of Indian

distributors and importers are not able to detail out features of ceramic

tiles and fail to market the product effectively.

It is suggested that Italian companies should give adequate trainings to

staff of Indian distributors in order to apprise them about the USP (Unique

Selling Proposition) and technical & aesthetic features of the product.

Such measures will develop customer’s trust on the brand and eventually

lead to a long term relationship with the company.

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5.1.3 Attend and participate in various promotional events

Several promotional activities are organized at various forums during the

year in India, where tile importers and exporters display their products.

Some promotional events which Italian companies could participate in and

organize are:

5.1.3.1 Attend buyer seller meets

Italian tile companies could visit and participate in buyer seller meets

which happen in India. These conferences are attended by top architects,

real estate firms, importers, distributors and tile companies in India. It

provides an opportunity to reach out to potential customers located at

different places across India. Through such meets Italian companies could

form business alliances/ marketing tie ups with established firms.

Italian tile companies who have collaborated with distributors and

importers in India could provide extended support to Indian companies in

displaying and promoting their products at such exhibitions by providing

samples for display, discounts on products and by sending a

representative from Italy to such trade fairs.

The major conferences in which Italian companies could participate in

India are:

Name Date (2013) Venue Website

a) ET Ace Tech Various dates Nationwide www.etacetech.com

b) The Big 5

Construct India

11th-13th

September 2014

Mumbai www.thebig5constructindia.

com/

a) ET Ace Tech:

The Economic Times Ace Tech, is among the leading Indian building and

construction trade events in India. The product range exhibited here

includes bath and kitchen fittings, tiles and marbles, water treatment

systems, safety appliances, automation devices etc. This exhibition is

visited by high profile architects, manufacturers, suppliers, industrialists

etc. It happens multiple times at different locations in a year. Amongst

these, ET Ace Tech Mumbai is considered the biggest exhibition.

ASCER (Spanish Ceramic Tile Manufacturers’ Association) organized a

group participation of Tile of Spain - the umbrella brand for the

international promotion of Spanish ceramic tiles. It included 8 Spanish

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Manufacturers & supplers

10%

Corporate houses

8%

Hotel industry 19%

Construction &

infrastructure companies

27%

Architectural & consultancy

practices 36%

ceramic tile companies: Apavisa, Azulejos Mijares, Ceramicas Aparici,

Gres de Aragon, Hijos de F. Gaya Fores, Neolith and Pamesa Realonda.

Source: ET Ace Tech

Timeline for ET Ace Tech exhibition in India is mentioned below:

Date (2013) Venue

17th- 20th October, 2013

Next edition dates not decided

Bombay Exhibition Centre, Mumbai

8th-10th November 2013

Next edition dates not decided

Bangalore Int. Exhibition Centre, Bengaluru

5th-8th December 2013

Next edition dates not decided

Pragati Maidan, Delhi

10th-12th January 2014 Gujarat University Grounds, Ahmedabad

7th-9th February 2014 Science City Exhibition Grounds, Kolkata

28th February- 2nd March 2014 Chennai Trade Centre, Chennai

Figure 5-3 Visitor segmentation in ET Ace Tech

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b) The Big 5 Construct India

The Big 5 Construct India is an international showcase of building and

construction products and has influential architects, contractors,

consultants and engineers attending the event. This event happens

worldwide multiple times in a year. The event showcases products and

technologies in sectors like ceramics & tiles, stones & marbles, steel,

concrete, plastics & composites, pipes & fittings, paints & coatings,

pumps, HVAC, water technology, window & doors and aluminum.

The Big 5 Construct 2013 event at Mumbai had 10 country pavilions from

Germany, Italy, Spain, Turkey, UK, Iran, Greece, Taiwan, Korea and China,

with over 200 companies participating in the event. This event will be held

in India from 11th-13th September, 2014 at Bombay Exhibition Centre,

Mumbai.

5.1.3.2 Organize delegation visits with Associations/ Institutes

Italian companies could visit India as delegation and meet select clients/

potential buyers. ICE- Italian Trade Agency and Italian Embassy could

facilitate the visit of Italian delegation comprising of ceramic tile

manufacturers, designers etc. The delegation could have meetings with

Indian builders, architects, real estate firms etc. This will not only provide

Italian companies a platform to interact with a specific target market but

also help in creating awareness of various product ranges and designs

amongst the Indian designers about Italian products. Such visits for their

better efficacy must involve the coordination of Italian Associations.

Some associations with whom delegation visits could be organized are:

Association /

Institute

Objective

Indian Institute of

Architects (IIA)

IIA promotes architecture by organizing and bringing

together the architects of India to share various trends

and updates in the industry for both its students and

alumni. IIA is represented on various national and

international committees connected with architecture

and thereby helps in bringing architecture trends of

various other countries to India.

Association of

Designers of India

(ADI)

ADI supports its members by creating learning & sharing

opportunities for them. Indian designers are members of

this association. It promotes networking of these

designers by organizing various events.

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Confederation of Real

Estate Developers’

Associations of India

(CREDAI)

It is the apex body for private real estate developers in

India. CREDAI links private real estate developers to the

government and customers through numerous initiatives

and activities like workshops, conferences etc.

5.1.3.3 Sponsor events

To establish themselves, as a brand in the Indian market, Italian

companies can come together to host project launches, product launch

parties with invitees from real estate firms, HNIs, designers etc. They can

sponsor events, exhibitions and award events organized by architects and

interior designers associations and institutes, in collaboration with the

organizers. Such events are attended by top architects and alumni of

institutes. Also they will assist Italian companies in connecting with the

key decision makers.

5.1.4 Open exclusive retail showrooms in India

Italian tile companies can open exclusive retail showrooms either solely or

in collaboration with Indian firms.

Cooperativa Ceramica D’Imola an Italian ceramic tile company has

its showroom in India where it displays its range of products and

sells tiles to the customers directly.

This strategy is suggested for long term since it will require setting up of

showrooms-renting a place, deployment of staff, maintenance etc.

Customers will start identifying the brand and it will provide more

visibility to their products in Indian market.

Italian companies could also provide guidance on after sale services to

their customers like tile installation techniques, layout designs and

patterns, tile maintenance etc. These services will provide a one stop

solution to Indian customers for ceramic tiles related queries which will

have positive returns over long period of time.

5.1.5 Construction of “Italian boutiques”

Italian tile companies in association with other Italian companies (home

furnishing & other related products) could introduce the concept of

“Italian boutiques”. These boutiques could be set up as a sample house

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with Italian products like tiles, kitchen ware, sanitary ware, marbles etc.

This will showcase Italian companies as a unique symbol of luxury. It will

also provide a ready reference to Indian customers, architects and real

estate firms to various Italian products and also will be a one stop solution

to all their luxury home décor and furnishing requirements.

Hydrobaths, a supplier of luxury bathtubs, jacuzzis, saunas etc. has

set up a Cotto Boutique in Hyderabad. Cotto is one of the largest

manufacturers of tiles and sanitary ware from Thailand.

SLOT analysis & future outlook 5.2

Based on the assessment of ceramic tile sector and interaction with several tile companies, distributors and architects, following is the SLOT analysis for Italian ceramic tile companies in India:

Future Outlook

Market for ceramic tiles is growing with increase in demand for luxury

housing in India. Real estate contribution to India’s GDP stood at 6.3% in

FY13 and is expected to double by 202514. Italian ceramic tiles are

gaining popularity in Indian luxury market and also becoming a symbol of

excellence. With growing awareness about luxury tiles there would be

14 CBRE Report, a commercial real estate service firm

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higher demand for Italian tiles in India. The future outlook for foray of

Italian companies in India looks positive provided Italian companies create

a need of ceramic tiles through extensive marketing and branding in India.

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6. Annexures

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Annexures 6

List of architects/ interior designers 6.1

Sr No Firm name Founder/ Key

architect

Address Contact No Website

1. ZZ Architects Zubin Zainuddin

& Krupa Zubin

ZZA Studio A-403, Prathmesh Tower

Raghuvanshi Mills Compound, Next to

Palladium Mall, Lower Parel (W),

Mumbai 400013

+91-022-43606666 www.zzarchitects.net

2. Kiran Gala &

Associates

Kiran Gala 10 Vishram Wadi, Nr Kings Circle

Station, Sion Road, Sion, Mumbai –

400022

+91- 9321119887 -

3. Hafeez

Contractor

Hafeez

Contractor

29, Bank Street 29, Mumbai 400 023 +91-22-22661920 www.hafeezcontractor.com

4. Della Tecnica

Architects &

Interior

Designers

Jimmy Mistry Rati Villa, Motibai Street, Tardeo,

Grant Road (W),

Mumbai - 400 007

91-22-6650 9000 www.dellatecnica.com

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5. Bobby

Mukherjee &

Associates

Bobby Mukherjee BMA House Opposite MIG Cricket

Club, Ramakrishna Paramhans Road

Gandi Nagar, Bandra (E), Mumbai

400051

+91- 22 2651 3118/

19/20

www.bobbymukherji.com

6. Rajiv Saini &

Associates

Rajiv Saini Flat No 9, Jer Mansion, Off Turner

Road, Bandra West, Mumbai -

400050

+91-22 - 26451489,

26451483

www.rajivsaini.com

7. SDM

Architects

Samir D’Monte 29-B Carter Road, Bandra West

Mumbai

+91-22 2643 1924/

25

www.sdmarchitects.com

8. Shakti Parmar

& Associates

Shakti Parmar 307, Ram Nimi Building,

8 Mandlik Road, Colaba Causeway,

Mumbai 400 001

+91-22-2202 0302

+91-22-2204 6041

www.shaktiparmar.com

9. Kaimal

Chatterjee &

Associates

Ravi Kaimal H-1568 C.R. Park

New Delhi - 110019

+91-11-41637357,

+91-11-40573572

www.kca.in

10. Studio

Mumbai

Bijoy Jain 561/63 N.M.Joshi Marg

Byculla West

Mumbai 400011

+91 22 65 777 560 www.studiomumbai.com

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11. JTCPL

Designs

Ninad Tipnis 2nd Floor , Sadguru Darshan,

1050, New Prabhadevi Road,

Mumbai 400025

+91 22 24366266

www.jtcpldesigns.com/

12. Chitale

Architects

Kapil Chitale

S.L Chitale

827 , Anna Salai,

Dhun Building 2nd floor,

Chennai - 600 002.

+91-44 – 28520515

+91-44 - 28520943

www.chitalearchitects.co

m

13. Sanjay Puri

Architects

Sanjay Puri 20 Famous Studio Lane, Off. Dr.

E.Moses Road. Mahalaxmi

Mumbai - 400011

+91-022-24965840/

41/42/43/44

www.sanjaypuriarchitects.c

om

14. Fulcrum

Studio

Husna Rahaman 67/IE, 3rd Floor

4th Cross Lavelle Road

Bengaluru- 5660001

+91-8022227698

+91-8022120413

15. Shravan

Design

Company

Shravan Suthar, Shravan Design Company

Ann Villa, 1& 2, N.P Thakker Road,

Vile Parle (E),

Mumbai - 400 057

+91- 22- 2611 1211

/ 13

www.shravansdesign.com

16. PG Patki Shekhar Patki 1st Floor, Calcot House +91-22 61408888 www.pgpatkiarchitects.com

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Architects 8, Tamarind Lane, Fort

Mumbai 400 001

+91-22 22049182

17. Maia Spatial

Design Studio

Shruti Jaipuria 344|8 4th Main Road

Sadashivnagar

Bengaluru- 560080

+91-9945112882 www.maiadesign.in/about

18. Harshavardha

na Architects

& engineers

Pvt. Ltd

18th A Mn,5th Blk

Rajaji Nagar

Bengaluru - 560010

+91-8023207133,

+91-8065971685

19. Abraham

John

Architects

Abraham John &

Alan Abraham

31 Green Acre, Union Park Road No.

5, Khar West, Mumbai 400 052

+91 22 2600 0081 www.abrahamjohnarchitects

.com

20. KNS

Architects Pvt

Ltd

Shresht Kashyap 305 – Dev Plaza, 3rd floor,

S.V.Road, Andheri (W)

Mumbai - 400 058.

+91 22- 67765000

- 30

www.knsarchitects.com

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21. Planet 3

Studios

Architecture

Pvt Ltd

Kalhan Mattoo

and Santha Gour

Mattoo

505, Tanishka,

Next to Big Bazaar,

Off Western Express Highway,

Akurli Road, Kandivali (E),

Mumbai - 400 101

+91-22-67825700 /

66995442 /

28852735

www.planet3studios.com

22. Rajiv Saini &

Associates

Rajiv Saini Flat No 9, Jer Mansion, Off Turner

Road, Bandra West, Mumbai -

400050

+91-22 - 26451489,

26451483

www.rajivsaini.com

23. Pentaspace

Consultants

Pvt Ltd

Gaurav Sanghavi

& Harsh Pote

Bungalow no J-17

MR Society , opposite raheja college

Relief Road, Off Juhu Tara Road

Santacruz (W),

Mumbai 400 055

+91-22 65341681 www.pentaspaceconsultants

.com

24. Edifice

Consultants

Ravi Sarangan Mumbai, Pune, Delhi, Kolkata,

Hyderabad, Chennai, Bengaluru

www.edifice.co.in

25. Ashwin

Architects

Ashwin A.P #23, Ratnavilas Road,

Basavanagudi,

+91- 80- 26612520 www.ashwinarchitects.com

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Bengaluru - 560 004,

26. Amit Khanna

Design

Associates

Amit Khanna B 6/7 , Vasant Vihar

New Delhi 110057

+91-11 41704150 www.akda.in

27. Khosla

Associates

Sandeep Khosla

Amaresh Anand

8, 17th Main Hal 3rd Stage,

Indiranagar

Bengaluru 560008

+91 80 2527 8186 www.khoslaassociates.com

28. Maya

Architects

Naveen Kumar

Deshpande

Dev Kumar. R

18/1, A Giri Complex, Vijaya Nagar,

Vijaya Nagar,

Bengaluru, 560040

+91-80 2314 7469 www.mayaarchitects.com

29. Dutta And

Kannan

Architects

Indraneel Dutta 61 100 feet road 2nd floor,

Indiranagar, Bengaluru 560038

+91-80 4113 3222 www.dka.in

30. Sunil Patil and

Associates

Sunil Patil Office no 6, First Floor,Gold Field

Plaza,, Sasson Road, Opposite Wadia

College, Pune 411001

0231 329 2603 www.architectsunilpatil.com

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31. Rajiv Agarwal

Architects

Rajiv Agarwal J-1963 Chiitaranjan Park

New Delhi 110019

+91-11 26271576 www.rajeevagarwal.com

32. Morphogenesi

s

Manit Rastogi

Sonali Rastogi

N-85B Panchsheel Park

New Delhi – 110017, India

+ 91 11 41828070 www.morphogenesis.org

33. Matharoo

Associates

Gurjit Singh

Matharoo

24 - E Capital Commercial Centre,

Ashram Road

Ahmedabad - 380 009,

+91 - 79 - 26577757

/ +91 - 9879543505

www.matharooassociates

.com

34. Anjan Gupta

Architects

Anjan Gupta 40/6 Gariahat Road (s)

Kolkata 700 031

+91- 33 2499 0909 www.anjanguptaarchitect

s.com

35. D.D

Consultants

337/5A, Diamond Harbor Road,

Kolkata-700 034

+91 33 2398 5100

+919830057326

www.ddconarch.com

36. Kalyan Biswas

Architects

Kalyan Biswas 26, Chowringhee Road

Room no 6

Kolkata-700 087

(033) 2249-6668,

(033) 2249-5729

www.architectkalyanbiswas.

com

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List of real estate firms 6.2

Sr No

Firm name Address Contact No Website

1. DLF Ltd DLF Shopping Mall, 3rd Floor

Arjun Marg, DLF City Phase-I

Gurgaon-122002

+91-124-4334200 www.dlf.in

2. Emaar MGF Emaar MGF Land Limited

ECE House, 1st Floor, 28 Kasturba Gandhi Marg

New Delhi- 110 001

+91-11-4152

1155/4120 3444

www.emaarmgf.com

3. Equinox Realty Equinox Realty & Infrastructure Private Limited

1st Floor, Tower 3,

Equinox Business Park (Peninsula Techno Park),

Off Bandra Kurla Complex, L. B. S. Marg,

Mumbai – 400070

Equinox Realty & Infrastructure Private Limited

Water's Edge, Opp. Nagawara Lake/Lumbini

Gardens, Outer Ring Road, Hebbal,

Bangalore - 560 045

+91-22-6121 5300

+91-80-6746 4242 /

4343

www.equinoxrealty.in

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4. Ansal API

115, Ansal Bhawan

16, Kasturba Gandhi Marg

New Delhi - 110 001

+91-11-23353550

(24 lines),

+91-11-66302272-73

+91-11-66302265-

66, 23705824,

23717854 {Sales}

www.ansalapi.com

5. Hiranandani Hiranandani Developers Pvt. Ltd.

Olympia, Central Avenue, Hiranandani Business

Park Powai, Mumbai 400076

+91 22 2576 3600 /

6868

www.hiranandani.com

6. Parsvnath

Developers Ltd

04, Nucleus Mall1, Church Road, Camp, Opposite

Police Commercial Office, Camp, Pune 411001

020 2331 5400 www.parsvnath.com

7. Dosti Realty Lawrence & Mayo House, 1st Floor, 276,

Dr. D. N. Road, Fort, Mumbai - 400 001.

+91-22-22198500 www.dostirealty.com

8. Lodha Lodha Excelus, NM Joshi Marg, Mahalaxmi,

Mumbai

+91 22 23024400 www.lodhagroup.com/

9. Unitech Group Unitech House L Block, South City – 1, Gurgaon -

122001

+91-124.4125200 /

4125328

www.unitechgroup.com

10. Tata Realty Elphinstone Building, 2nd floor, 10 Veer Nariman +91-22 6629 4000 www.tata-realty.com

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Road , Fort, Mumbai 400 001

11. Adani Developers Adani Enterprises Ltd

Adani House, Nr Mithakhali Circle

Navrangpura, Ahmedabad 380 009

+91 79 2656 5555 www.adani.com

12. Mantri Developers Mantri House, #41, Vittal Mallya Road,

Bengaluru - 560 001

+91-80-41300000 www.mantri.in

13. Oberoi Realty Oberoi Realty Limited,

Commerz, 3rd Floor, International Business

Park, Oberoi Garden City, Off Western Express

Highway, Goregaon (East), Mumbai-400 063

+91 22 6677 3333 www.oberoirealty.com

14. Amit Enterprises

Housing.

Amit House, 1902 Bajirao Road,

Sadashiv Peth, Pune-411 030

+91 20 2448 9494 /

95

www.amitenterprises.com

15. India Homes 301, B-Wing, JB Nagar (Nr Sangam Theatre),

Kurla Road, Andheri (E), Mumbai 400059

+91 -99 99 803662 www.indiahomes.com

16. Kanakia Spaces 215 Atrium, 10th Floor, Next to Courtyard by

Marriot Hotel, Opp. Divine Child School, M.V. Rd,

Andheri East, Mumbai 400059

+91 -22 6726 6666 www.kanakia.com

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17. Omaxe Ltd Omaxe House, 7, LSC, Kalkaji, New Delhi -

110019

+91-11- 41893100,

41896680-85,

41896776

www.omaxe.com

18. Godrej Properties

Ltd

Godrej Properties Limited,

Godrej Bhavan, 4th Floor, 4A Home Street, Fort,

Mumbai 400 001.

+91 - 22 - 66510200 www.godrejproperties.com

19. Raheja Corp C-30, Bandra Kurla Complex, Block G,

Opposite Sidbi, Bandra East

Mumbai 400051

+91 22 2656 4000 www.krahejacorp.com

20. Kalpataru Group 101, Kalpataru Synergy, Opp. Grand Hyatt,

Santacruz (E), Mumbai 400 055

+91 - 22 - 3064 5000 www.kalpataru.com

21. DB Realty D.B. House,General A.K. Vaidya Marg,

Goregoan (E), Mumbai 400063

+91 22 4077 8600 www.dbrealty.co.in

22. Sobha Developers

Ltd

Sarjapur - Marthahalli Outer Ring Road (ORR)

Devarabisanahalli, Bellandur Post,

Bengaluru – 560103

+ 91 80 49320000 www.sobhadevelopers.com

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23. Brigade Group Brigade Enterprises Limited

29th & 30th Floors, World Trade Center

Brigade Gateway Campus, 26/1, Dr Rajkumar

Road, Malleswaram-Rajajinagar

Bengaluru 560 055

+91-80-4137 9200 www.brigadegroup.com

24. Puravankara Group Puravankara Projects Limited.

130/1, Ulsoor Road,

Bengaluru - 560 042.

+91-80-43439999 www.puravankara.com

25. Akshaya Private Ltd G Square,

No. 46, Rajiv Gandhi Salai (OMR)

Kandanchavadi,

Chennai - 600 096

+91 44- 2496 8811 /

4200 8811

www.akshaya.com

26. Nitesh Estates Nitesh Timesquare,Level 7,

#8 MG Road,

Bengaluru - 560001.

+91 80 40174222-26 www.niteshestates.com

27. Prestige Estates

Projects Ltd

Prestige Estates Projects Ltd.

The Falcon House, No. 1,

Main Guard Cross Road,

Bengaluru - 560 001

+91 80 25591080 http://www.prestigeconstru

ctions.com

28. Ambuja Realty Ecospace Business Park +91 33 40406060 http://www.ambujaneotia.c

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Plot - II /F/ 11 Block -3A,

2nd Floor, New Town, Rajarhat

Kolkata - 700156

om

29. Merlin Group 22, Prince Anwar Shah Road

2nd Floor, Merlin Oxford

Kolkata - 700 033

+91 33 4015 4545 http://www.merlinprojects.

com

30. PS Group Trinity Tower

83, Topsia Road (South)

Kolkata - 700 046

+91 33 4030 4030 http://www.psgroup.in

31. Hiland Group 225C, AJC Bose Road, 4th Floor

Kolkata – 700020

+91 33 2283 9015-17 www.hilandcal.com

32. Belani Group India House, 9th Floor

69, Ganesh Chandra Avenue

Kolkata - 700013

+91 4010 5656 www.belanis.com

33. Tata Housing

Development

Company

TATA Housing Development Co. Ltd.,

12th Floor, Times Tower,

Kamala Mills Compound,

Senapati Bapat Marg, Lower Parel,

Mumbai - 400013

+91 22 6661 4444 http://www.tatahousing.in

34. The 3C Company Tech Boulevard,

Central Block,

Plot no. 6, Sector 127,

+91-120-476 6414 http://www.the3c.in

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55

Noida - 201301

35. Mittal Brothers 602, Pulanchiwadi, Deccan Gymkhana,

Shivaji Nagar

Pune 411004

+91-020 2553 1474 www.mittalbrothers.com

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List of ceramic tile distributors/importers 6.3

Sr No

Firm name

Address Contact name & Email address

Contact No Countries/Brands Website

1. Kohinoor

Ceramics

#15/4, Bannerghatta

Main Road, Near Mico

Back Gate, Adugudi

Bengaluru-30

Jitesh Salecha

kohinoorceramic@ya

hoo.in

+91 9900162001

+91-80-22485159,

22295592

Spain, Srilanka,

Italy, China

www.kohinoorcerami

cs.com

2. Milagro

Ceramica

Pvt Ltd

Nehru Nagar, Opp

Hanuman Temple,

Kanjurmarg (East),

Mumbai 400 042

Lalit Jain(Director)

info@milagroceramic

a.com

+91-22-25790686

/ 87 / 88

Italy, Spain, turkey www.milagroceramic

a.com/

3. Siena-

Elegants

Tile

Boutique

Elegant House,

Raghuvanshi Mills

Compound, Senapati

Bapat Marg

Lower Parel (West),

Mumhai 400013

Jigna Goradia

(Project Head)

elegantmarbles@gm

ail.com

+91-9223582663

+91-22 24960771,

+91-22 24939676

Versace,

Pecchioli,etc.

Germany

www.elegantmarbles

.com/index.php?s=si

enna

4. Sidrons SIDRON'S LOUNGE

Nanda and Nanda,

Unit number -7,

Opposite S-260,2nd

Brijesh Nanda

[email protected]

+91-11-41745244

+91-11-26012683

Spain, Italy www.sidrons.com

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Floor , Local Shopping

Center

S - Block Panchsheel

Park, New Delhi -

110017

5. FCML A 217, Okhla Phase I

New Delhi 110 020

Owner- Pallavi

Khandelwal

Pallavi Khandelwal

+91 9810153455

+91 11 2637 2701

– 06

+91- 9810153455

Florim (Italy) www.fcmlindia.com

6. Bellaza

Decor

15 to 20 Janata

Industrial Estate, 1-

162, Senapati Bapat

Marg, Lower Parel

(W), Lower Parel,

Mumbai 400013

[email protected]

m

+91- 22 2492 4028 Fap Ceramiche

(Italy)

www.bellezadecor.co

m/

7. Milagro

Ceramica

Nehru Nagar, Opp

Hanuman Temple,

Kanjurmarg (East),

Mumbai 400 042

Lalit Jain (Managing

Director)

info@milagroceramic

a.com

+91-22-25790686

/ 87 / 88

Italy, Spain, china www.milagroceramic

a.com/

8. Ratnagiri

Ceramic

260, Ritambhara Bldg,

Tribhuvan Complex,

Savita Bhaskar

Savita.bhaskar@ratn

011 -

26310228/268388

Italy, Spain,

Turkey, China

www.ratnagiricerami

cs.net

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Tiles Ishwar Nagar West,

Mathura Road

New Delhi

agiriceramics.com 38

9. C Bhogilal

& Company

310, Ground Floor,

Hanuman Bldg, Perin

Nariman St, Fort,

Mumbai 400001

Viral Shah

viralshah@cbhogilalf

ort.com

Arnav Mitra

arnavmitra@cbhogila

lfort.com

+91-22 4085 8585 Italy www.cbwestend.com

10. Somany

Global

27-E Laxmi Industrial

Estate

Andheri(West),

Mumbai

Navneet Gaur

splmumbai@somanyt

iles.co.in

+91-22 - 26344314 Italy, Spain, Turkey www.somanyglobal.c

om

11. BR

Ceramics

Pvt Ltd

F- 5 Local Shopping

Centre No.1,

Mansarover Garden,

New Delhi- 110 015

Manjit Singh

[email protected]

m

+91 9999041001 Spain, China www.brceramics.co

m

12. Grescasa 5-E, Laxmi Industrial

Estate, New Link

Road, Andheri(W)

Mumbai – 400053

Rakesh Agarwal

[email protected]

+91-22-26358170

+91-22-2631 3096

Spain, Italy, Brazil

and China

www.grescasa.com

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13. AS Homes

Pvt Ltd

C-224, Defense

Colony, Lower ground

floor

Delhi

Shantanu Kaushik

Aparna Kaushik

+91-9811713068

+91 9810167248

Spain

14. Marmo

Home

5258, Shardhanand

Marg

Delhi - 110006

John Kuty +91 - 11 -

47128800 (30

Lines)

Spain, Germany,

China, Malaysia,

Thailand & Srilanka

www.marmohome.co

m

15. Tile Point F - 73, Main Road,

Jagatpuri, Near Preet

Vihar Metro Station

New Delhi - 110051

Mr. Amit Kapoor

[email protected]

+91-8447569083

+91-9810061096

+91-8505902666

http://www.indiamar

t.com/tilepoint/

16. Lachman

Dass &

Sons-Tiles

and Taps

M-37, Greater Kailash-

II Market

New Delhi-110048

Ravi Kumar Arora

[email protected]

m

+91 11 29216080 /

+91 11 29217600 /

+91 11 29221228

Italy www.tilesandtaps.co

m/

17. Orient

Internation

al

Iris House, 16

Business Centre,

Nangal Raya

New Delhi 110046

R.S Mann

[email protected]

om

+91-11-47119100 Italy, Spain www.orientbell.com/

orient/orientinternat

ional.php

18. Celestial

Ceramics

C-14/1 , Mansarover

Garden ,

Kirti Nagar Furniture

Raynel Abrol

celestialceramics@g

mail.com

+91-9811322322 Spain, China www.celestialcerami

cs.in

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Market Road ,

Near Mayapuri Chowk

New Delhi-15

19. Ceracon

Ceramix

India Pvt

Ltd

No. 148 B, 1st Stage,

Industrial Suburb,

Yeshwanthpur,

Bnagalore - 560022

Mr Nayar

bangalore@ceraconi

ndia.com

+91 80 2357 9000

/ 01 /02

+91 9740992211

www.ceraconindia.co

m

20. Trend

Impex

15, Upper Level,

Indraprastha,

Nr. Drive in Cinema,

Ahmedabad - 380 054

Ashit Vyas

[email protected]

om

+91-98240 77699

+91-79-27488599

+91-79-27488533

Italy, Spain, China www.trendimpex.co

m

21. Picasso

Ceramics &

Colors Pvt

Ltd

01, VIP Plaza, B/7,

Veera Industrial

Estate, Off Andheri

Malad Link Rd, Near

Infinity Mall

Lokhandawala,

Andheri West, Mumbai

Tahir Sayed +91 9833924076

+91 22 26747801

Italy, Spain, China

22. Maruthi

Ceramics

No. 311, 10th Main,

100 Feet Road,

Banaswadi

N.J. Naveen

naveen.maruthicera

[email protected]

+91-9880532156 www.maruthiceramic

s.com

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Bangalore

23. Ram

Ceramics

49 Jyoti Mahal

Building St Mrks Road

Bengaluru

PC Prakash

pcprakash@ramcera

mics.com

+91 80 2221 2330 www.ramceramics.co

m

24. Opulent

Styles &

Tiles Pvt

Ltd

3,Chaudry Nivas, Opp

Kalidas Natya Mandir,

Dr Ambedkar Rd,

Mulund West, Mumbai

Sam Joy, Ms Anni

opulentstyles@rediff.

com

+91 9867172938 Italy

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List of companies interviewed/ interacted 6.4

Sr No Company Profile Address Contact Person &

Number

Email

1. ZZ

Architects

Architect/ Interior designer ZZA Studio A-

403, Prathmesh

Tower

Raghuvanshi

Mills Compound,

Next to

Palladium Mall,

Lower Parel (W),

Mumbai 400013

Nikunj Vaja (Team

Design Head) &

Mahira

[email protected]

2. Kiran Gala &

Associates

Architect/ Interior designer 10 Vishram Wadi,

Nr Kings Circle

Stn, Sion Rd,

Sion, Mumbai -

400022

Kiran Gala

+91-9321119887

3. Della

Tecnica

Architect/ Interior designer Della House, Opp

Grant Road Post

Office

Sleater Road,

Mumbai 400 007

Dinesh More ( Senior

Architect)

+91-9870999256

Faroukh Dastur

(Deputy Chief

Architect)

[email protected]

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+91-9664456428

4. Emaar MGF Real estate company ECE House 1st

Floor, 28

Kasturba Gandhi

Marg new Delhi

5. Lodha Group Real estate company Goregaon ,

Mumbai

Jigar Shah

6. Elegant

Marble

Tile & marble Importer/

distributor

Elegant House,

Raghuvanshi

Mills Compound

Lower Parel,

Mumbai

Jigna Goradia

(Project Head)

+91-9223582663

7. Ashtech

India Pvt.

Ltd.

Distributor and exporter of fly

ash & ceramic tiles

Shashi Kurup

(A.V.P)

[email protected]

8. Timex

Ceramic

Indian ceramic tile

manufacturer & importer

Pratik Avenue,

Opp Shiv Sagar

Vile Parle (E),

Mumbai

Sachin Gala

(Director)

+91=9321015115

[email protected]

9. Space Biz Spanish tiles

importer/distributor

No 11, Diamond

House, Primose

R. Parthasarathy

(CEO)

[email protected]

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Road

Gurappa Avenue,

Bangalore 560

025

+91-9322808135

10. Somany

Ceramics

Indian ceramic tile

manufacturer and importer

3-H, Laxmi

Industrial Estate,

New Link Road,

Andheri(W), Azad

Nagar, Mumbai

Navneet Gaur

(A.G.M. Sales)

11. ITACA

Ceramic Pvt

Ltd

Indian ceramic tile

manufacturer

8-A / National

Highway,

Opp. 132 K.V.

Lalpar Power

Station,

Morbi, Gujarat

Kiran Patel

(Marketing Head)

[email protected]

12. Specto Tiles Indian ceramic tile

manufacturer

8-A, National

Highway, Morbi

Kailash Patel

(Director)

www.spectotiles.com/

13. Lexus

Ceramic Pvt

Ltd

Indian ceramic tile

manufacturer

8-A, National

Highway,

Lakhadhirpur

Road

Morbi, Gujarat

Hitesh Patel

(Director)

+91-9925333000

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14. Axiom

Ceramic Pvt

Ltd

Indian ceramic tile

manufacturer

Laghdhirpur main

road, 8-A

National

Highway, Morbi,

Gujarat

Nilesh Ferar

+91-9978970608

15. Soriso

Ceramic

Indian ceramic tile

manufacturer

8 A National

Highway,Morbi

Manoj Kakasaniya

(Director)

16. Cengress

Tiles

Indian ceramic tile

manufacturer

D/401 Ganesh

Meridian, Opp

Amiraj Farm

S.G Highway,

Ahmedabad

380060

Nirmalaya

Chakraborty (G.M.)

+91-9320434444

[email protected]

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Bibliography

1. http://www.icctas.com/

2. http://www.cbec.gov.in/customs/cst2012-13/cst1213-idx.htm

3. http://www.eximbankindia.in/sites/default/files/Research%20Brief/Indian

%20Ceramic%20Industry.pdf

4. http://articles.timesofindia.indiatimes.com/2012-08-06/india-

business/33064932_1_ceramic-tiles-joint-venture-new-brand

5. http://crisil.com/capital-markets/CRISIL-Research_ier-report-

somany.pdf

6. www.etacetech.com

7. www.thebig5constructindia.com