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
1. Implementation of RERA to protect the interests of industry players
2. Reduced GST rates to augur demand for new houses
3. Unorganised industry shifting to natural gas due to regulatory requirements
4. Ban on use of coal gasifiers by NGT (National Green Tribunal)
5. Various government initiatives that boost the demand
6. Various licenses and clearances required for business commencement

Growth Factors of Exchange Industry in India

Factors that indicate a healthy growth in the Exchange industry are
1. Increase in number of listed companies
2. Shift from physical assets to financial assets (eg. mutual funds)
3. Increase retail participation
4. Govt approval for EPFO to invest in equity market
5. Growth of data related business
6. Development of corporate bond market
7. Development of International Exchange


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