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Pricing Power of Tiles Industry in India

Extract Source: Morbi Tiles

Another driving force for the increase in the gross profit margin in Kajaria Ceramics would be the better terms that it may get from its suppliers.

There may be 2 reasons for it : A)  The economies of scale attained due to its size, B) Lower days of payable as compared to the other players over the years, helping to get better terms.

Source – ZebraResearch

Source: ZebraResearch, Respective company ARs & IPs

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Regulations of Tiles Industry in India

Major regulations in the Indian Tiles Industry are as followings
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5. Various government initiatives that boost the demand
6. Various licenses and clearances required for business commencement

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