#### **Company Overview** Kajaria Ceramics Ltd. is India’s largest manufacturer of **ceramic and vitrified tiles** and ranks as the **8th largest tile producer globally**. The company manufactures high-quality, functionally advanced tiles and has expanded its operations into complementary building materials, positioning itself as a leading provider of comprehensive décor solutions in India. As of October 2025, Kajaria operates **12 manufacturing plants** with a **total tile production capacity of 90.50 million square meters (MSM)** across India and Nepal, including a **5.10 MSM joint venture plant in Nepal (Kajaria Ramesh Tiles Limited – KRTL)**. The company produces premium tiles through highly automated processes, integrating advanced pressing systems like **Continua Plus technology** for large-format tiles. --- #### **Manufacturing & Production Network** Kajaria has a **pan-India manufacturing footprint** spread across nine key locations: - **Sikandrabad (Uttar Pradesh)** - **Gailpur & Malootana (Rajasthan)** – Gailpur is India’s largest and most certified tile manufacturing plant - **Morbi (Gujarat)** – Three facilities - **Srikalahasti (Andhra Pradesh)** – Features Continua Plus and automated slab polishing - **Balanagar (Telangana)** - **Nawalparasi (Nepal)** – Joint venture plant with Ramesh Corp In **Nepal**, the 50:50 JV plant (KRTL) began commercial operations on **September 8, 2024**, with an annual capacity of **5.10 MSM**. It targets capturing 10% of Nepal’s 40 MSM market, reducing reliance on high-cost tile imports. Kajaria operates **highly automated, sustainable, and quality-controlled plants**, with recent kiln modernizations and shifts to **biomass fuel** (from natural gas) to improve cost efficiency and environmental performance. --- #### **Core Business Segments & Revenue Streams** Kajaria’s revenue is derived from five core product categories: 1. **Tiles (89% of revenue)** 2. **Bathware (Kerovit brand – 8%)** 3. **Tile Adhesives & Grouts (GresBond – 2%)** 4. **Plywood & Laminates (1%)** 5. Other (faucets, sanitaryware, etc.) - **Tile Sales Volume**: 114.69 MSM in FY25 - **Bathware Production**: 20.44 lakh pieces (1.6M faucets, 1.2M sanitaryware) - **Total Revenue (FY25)**: ₹4,683 crore - **EBITDA**: ₹598 crore - **Net Profit**: ₹294 crore - **Revenue per Employee**: ₹61 lakh Despite diversification, **tiles remain the core**, expected to contribute **85% of total revenue by FY27**. --- #### **Strategic Business Moves (2022–2025)** ##### **1. Market Expansion** - **Tier 2 & Tier 3 Growth**: Strategic expansion in semi-urban India, targeting 2,000 towns by 2027 (from 1,000 in 2025). - **Dealer Network**: Over **1,800 dealers**, including **415 exclusive showrooms (Kajaria Eternity, Galaxy, etc.)**. - 200 new dealers added, 150 underperformers removed since 2024. ##### **2. Product Innovation & Range Expansion** - **Large-Format Tiles**: 1200x2800 mm Super Premium Slabs (Aurum Range). - **Vitronite Slabs**: 1200x1800 mm slabs as premium granite/marble alternatives. - **Bathware**: Launch of multifunction showers, sensor taps, and premium color finishes (PVD technology: Rose Gold, Gun Metal). - **Adhesives (GresBond)**: Cement-, epoxy-, and polyurethane-based; 69,240 MT sold in FY25. ##### **3. Digital & IT Transformation** - **GresBond Rewards App** and **Mason Meets** for trade engagement. - Development of **Sales Force Automation (SFA)** and **Dealer Management Systems (DMS)** to improve order tracking, cash flow, and lead management. ##### **4. Strategic Restructuring (FY25)** Following underperformance and declining dealer sentiment, Kajaria undertook a **strategic pivot**: - Consolidated **ceramic and vitrified tile marketing teams** into a **unified commercial team**. - Adopted an **integrated distribution model** to improve efficiency and customer engagement. --- #### **International Operations & Subsidiaries** ##### **Kajaria International DMCC (Wholly Owned Subsidiary)** - Established JVs in **UAE (Kajaria RMF Trading LLC)** and **UK**, but is **exiting the UK** due to high costs and low profitability. - UAE joint venture serves as a strategic hub for exports to **Gulf and African markets**. ##### **Joint Venture in Nepal: KRTL** - 50% stake in Kajaria Ramesh Tiles Limited. - Capex: ₹181 crore; capacity: 5.10 MSM. - Operated at **~69% in Q1FY26**, increased to **~86% in Q2FY26**. ##### **Other Key Subsidiaries & Investments** - **Kajaria Bathware Pvt. Ltd. (85% stake)**: Manufactures faucets (Gailpur, Rajasthan) and sanitaryware (Morbi, Gujarat). - **Kajaria Plywood Pvt. Ltd. (KPPL)**: **Being wound down** after operating under an outsourcing model. - **KTPL (Kajaria Vitrified Pvt. Ltd.) and KIPL (Kajaria Infinity Pvt. Ltd.)**: Hold stakes in Morbi-based vitrified tile units. --- #### **Leadership & Management** - **Chairman & MD**: **Mr. Ashok Kajaria** - **Joint Managing Directors**: - **Mr. Chetan Kajaria**: Led ceramic tile expansion, introduced **value-added tiles** via Spanish digital tech, and pioneered **international-standard dealer showrooms**. Led acquisitions in Gujarat and Andhra Pradesh. - **Mr. Rishi Kajaria**: Instrumental in establishing **vitrified tile manufacturing** (Sikandrabad 2010, Gailpur 2011), **Morbi JVs**, and launched **bathware and Aurum Range**. --- #### **Operational Strengths & Competitive Advantages** - **Brand Leadership**: Top brand in India; 12-time **Superbrand** awardee. - **Brand Ambassadors**: **Akshay Kumar** (tiles), **Ranveer Singh** (Kerovit bathware). - **Marketing Spend**: ₹131 crore in FY24; focused on airports, IPL (RCB sponsorship), and digital. - **Technology Edge**: Only player with **Continua Plus** in both North and South India. - **Distribution Depth**: Strongest and largest in the organized tile sector; “**Jo dikhta hai, vo bikta hai**” philosophy. --- #### **Challenges & Strategic Shifts** - **Underperforming Segments**: Plywood business has been discontinued due to unprofitability. - **UK Exit**: High costs led to scaling back international operations there. - **Gas Price Volatility**: Mitigated by switching to **biofuel** in spray dryers. - **Market Share Gaps**: Not dominant in **exports** and **large-format tiles**, but investing to capture these. ---