### **Overview** Exxaro Tiles Limited (ETL), incorporated in 2008 and headquartered in Ahmedabad, Gujarat, is a leading manufacturer and marketer of vitrified ceramic tiles in India. Listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), the company has grown from its origins as a frit producer into a prominent player in the organized ceramic tiles sector. Its products are marketed under the flagship **'Exxaro'** brand and the recently launched premium brand **'ARESTA'**, targeting high-end design-centric markets. Exxaro operates a fully integrated, in-house manufacturing model supported by strong R&D, quality control, and a wide distribution network. With two state-of-the-art production facilities in **Talod (Sabarkantha)** and **Padra (Vadodara)**, Gujarat, it has established itself as a technologically advanced, quality-focused, and innovation-driven organization. --- ### **Business Segment & Operations** - **Single Business Segment**: Manufacturing and trading of refractory ceramic products — primarily **vitrified tiles**, as defined by the Chief Operating Decision Maker. - **Core Product Categories**: - Double-Charged Vitrified Tiles (DCVT) - Full Body Vitrified Tiles (FBVT) - Glazed Vitrified Tiles (GVT) - Polished Glazed Vitrified Tiles (PGVT) - Wall Tiles and Big Format Slab Tiles (including "Big Slab") - **Product Innovations**: - First in India to launch **FGVT (Full Glaze Vitrified Tiles)** and **Full Color Body Tiles**. - Leaders in **3D-effect tiles**, **>95% glossy finishes**, **4-layer Nano+ Micro Polished technology**, and **multi-digital printing**. - Launched **“Big Slab”** in October 2022 as a premium alternative to natural stone (marble, granite, quartz). - Offers tiles in diverse finishes: high gloss, matte, rocker, sugar, butter, book-matched, and 3D series. - **Manufacturing & Capacity**: - Combined annual capacity: **14.6 million sq. meters** (146 lakh sq. m). - **Padra Unit**: 3.6 million sq. m — specializes in Double-Charge Vitrified Tiles (600x600 mm, 800x800 mm). - **Talod Unit**: 11.0 million sq. m — India’s largest single-roof **glazed vitrified tile** manufacturing facility under one roof. - Equipped with **3 production lines** for PVT, GVT, and Slabs. - Utilizes **SACMI CONTINUA technology** (imported from Italy) for large-format slab production. - In-house glaze production — a rare differentiator in India. - CE-compliant, ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certified. --- ### **Strategic Developments & Branding (2023–2025)** #### **Launch of Premium Brand: ARESTA (July 2025)** - Introduced to **target architects, interior designers, and high-end infrastructure projects**, differentiating from the mass-market Morbi segment. - Positioned as a **symbol of design innovation, aesthetics, and cutting-edge technology** — derived from the word “Edge”. - Features: - All-color-body vitrified tiles. - Advanced surface treatments and multi-digital printing. - Large-format sizes up to **1200x2400 mm**. - Launched via a **dedicated event at Talod plant**, attended by 150 top dealers nationwide. - Strategic goal: Elevate brand perception, access premium dealer networks, and increase realization per sq. m. #### **Expansion & Capacity Additions** - Added a new **1.4 million sq. m Big Slab GVT production line** at Talod (commercial production: October 18, 2022). - Project funded via **internal accruals (₹300 million)**. - Revenue potential: **₹250 crores at full capacity**. - Focus on **brownfield expansion**, including upgrades to GVT and DCVT lines at Padra and Talod. #### **Outsourcing Strategy** - To broaden market reach and meet demand without capital constraints, ETL **outsources production from Morbi-based units** meeting Exxaro’s quality standards. - Enables expansion into **affordable segments** (Tier II, III, rural markets) while maintaining premium positioning. #### **Dealer & Distribution Network** - **Domestic**: - Over **2,000 touchpoints** across **25 Indian states**. - Presence strongest in **South and West India**, with targeted expansion in **North, East, and North East**. - Appointments in **Arunachal Pradesh, Uttarakhand, Puducherry**, and other underserved regions. - Six **Exxaro Display Centers**: Ahmedabad, Mumbai, Bengaluru, Chennai, Cochin, Bhubaneshwar. - Over **800 registered dealers**; plans to increase **EXXARO Exclusive Shoppes** nationwide. - **International**: - Exports to **over 15 countries**: USA, Canada, UAE, Vietnam, Indonesia, Mexico, Poland, Bosnia, Nepal, and Gulf nations. - Aiming to expand presence in **Europe, Americas, and strategic regions** via local distributors. - Participated in **Coverings 2023 (Orlando, Florida)** to enhance North American market access. --- ### **Financial & Market Performance** - **FY 2024 Revenue**: **₹301.68 crore** (₹3,016.8 million). - **FY 2022 Revenue**: ₹325.34 crore, with a **5-year CAGR of 10.3%**. - **Segment Revenue (FY 2024–25)**: - Domestic: **97.9%** (₹29,296.12 lakhs) - Export: **2.1%** (₹639.86 lakhs) - **Investment in Assets (FY 2024–25)**: ₹715.16 lakhs in asset additions and intangibles. - **Capacity Utilization**: Around **67.98%** (as of Jul 2023), impacted by upgrades and restructuring. - **Power & Fuel Costs**: Accounted for **35.1% of revenue** in FY2023 — driving focus on energy security. --- ### **Sustainability & Cost Efficiency Initiatives** - **Energy Security**: - Dedicated **10,000 standard cubic meters/day gas supply** from ONGC at Padra plant (administered pricing). - Building an **on-site LNG gas station** to reduce dependence on external sources and cut fuel costs. - **Solar Energy Project**: Underway to improve energy efficiency and reduce carbon footprint. - **Fuel constitutes ~30% of total production cost** — making cost optimization a key strategic priority. --- ### **Marketing & Brand Strategy** - **Brand Ambassador**: Bollywood actor **Ajay Devgn** appointed (since Jul 2023) to boost brand recall and penetrate the unorganized market. - **Advertising Spend**: Plans to spend **~1% of revenue** on advertising and promotions. - **Promotional Tools**: - Hoardings, airport/marketplace displays. - Digital marketing, social media campaigns. - Participation in **domestic and international trade exhibitions**. - **Four-Pronged Strategy**: 1. Brand building via celebrity endorsement. 2. Product diversification (premium + affordable). 3. Distribution expansion (Tier II/III, international). 4. Retail footprint growth (Exclusive Shoppes). --- ### **Growth Drivers & Market Position** - **Market Share & Competition**: - Current market share: **~2%** in a highly fragmented market. - **60% of Indian tile market is unorganized** — key opportunity for organized players. - **Growth Opportunities**: - Rising demand from **residential real estate**, **PMAY**, **AMRUT**, **Smart Cities Mission**. - **Urbanization** and increasing disposable incomes. - **Export growth**, especially in high-margin premium segments. - Untapped **rural and semi-urban markets**. - **Recent Order Wins**: Secured a **₹35–40 crore order** for large-format GVT slabs and vitrified tiles (Aug 2023).