Kajaria Ceramics expects an acceleration of growth in 2017
Although growth rates remained below the previous year’s double-digit figures, Kajaria Ceramics closed the fiscal year to 31 March 2017 with a 6% upturn in total income to approximately 381 million euros (Rs. 28.5 billion) and a 9% rise in consolidated net profits to 33.4 million euros (Rs. 2.53 billion).
Kajaria Ceramics is the largest Indian tile manufacturer and one of the top ten producers worldwide. The ambitious expansion programme implemented over the last three years has raised total production capacity to 69 million sq.m/year (March 2017), while the expansion project at the facility in Gailpur, Rajasthan is expected to be completed soon.
The group aims to reach a capacity of 100 million square metres by 2020, a goal that may in part be achieved through acquisitions.
Chairman and Managing Director Ashok Kajaria expresses satisfaction for the 2016 group’s results, although “given the backdrop of a significantly higher historic growth momentum, this uptick may seem marginal”.
For the current year Ashok Kajaria has announced a return to more sustained growth, driven by a further strengthening of the brand across the country and good prospects for market expansion. The market growth should be favoured by various factors: the priority accorded to the infrastructure sector in the Government’s recent Union Budget; the new RERA (Real Estate Regulatory Authority) legislation which mandates stronger governance of real estate development and timely delivery of projects; and, last but not least, the new Goods and Services Tax (GST) introduced on 1 July 2017.
Ashok Kajaria provides an overview of the evolution of Indian market as for trends, consumers’ approach and distribution.
- Read the interview with Ashok Kajaria published in Ceramic World Review 123/2017