Operational Performance

• 9 per cent of the total installed capacity in the industry

• Operating at about 70 per cent capacity
• Advantage in technology
Spartek Kajaria Somany Pilkington

Raw material to sales 0.14 0.16 0.11

Earnings before interest 0.32 0.15 0.17

depreciation and tax/
Sales

EBIT /Sales 0.25 0.15 0.13

Net profit/Sales 0.16 0.04 0.17

 STRENGTHS (+) •Area of project management
• Good track record in the capital market and strand brand image
• 40000 TPA capacity passed by the government
• Retained earnings High cash generation

WEAKNESSES (–)
•Dealers retaining higher margins, giving lesser discounts to customer
•Lost its technological edge as competitors have caught up
• Dealership concentrated in Southern and Western markets

OPPORTUNITIES (+) • Diversify into a related field by raising the capacity of utilization
• Capacity Expansion and diversify into a totally unrelated field
• Aacquire an existing company & modernize its plants
• Efficient Distribution network
• Booming construction industry, especially housing industry, which drives
the demand of the rile industry

•High competitive rivalry within the industry: over-crowding of industry

THREATS (–)
•High threat of new entrants due to absence of any ma entry barriers and
delicensing of the industry
•HR and SPL, the top two ceramic tile manufacturers. come in the floor tile
segment