Kajaria Ceramics records double-digit growth

India’s largest tile manufacturer celebrates the goal of 101 million sqm, sold mainly on the domestic market. Revenues were up 18% to around €500 million.

Kajaria Ceramics, India’s largest tile manufacturer and one of the top ten groups in the world, once again reported very positive results in the fiscal year ending March 2023.

Kajaria’s tile production grew 17% year-on-year to 80 million sqm, while sales in volume were up 11% year-on-year to 101 million sqm. Revenues grew by 18% to Rs. 43.82 billion (approximately €500 million).

Due to higher production costs and rising gas prices until December 2022, EBITDA margin reported a 300-bps year-on-year decrease, with margin down to 13.5%, despite a strong improvement in the fourth quarter between January and March 2023 (up again to 14.6%). Margins displayed an encouraging reversal in the first quarter of fiscal 2024 (April-June 2023), driven by the decline in fuel costs across all plant locations. A 7.25% growth in sales volume and a 6% rise in revenue were accomplished as compared to the corresponding period last year.

For Kajaria Ceramics, exports have always been negligible compared to overall revenues.

“However, while we continue to focus on our domestic market where we are assured higher margins because of our brand, we are also exploring export opportunities”, President Ashok Kajaria tells us. “We have recently opened a large showroom in Dubai as a joint venture with a local partner to increase our footprint in the international market. At the same time, in Nepal, we are launching a greenfield project with a capacity to manufacture 5.1 million sqm of ceramic and glazed vitrified tiles as a joint venture with a local partner. This strategic investment will help us enter a market where we currently have to pay customs duties of 50-55%”.

Forecasts for the Indian construction industry show that every segment of the real estate sector – from residential to commercial, retail, hospitality and hospitals should experience good growth over the next 3-5 years.

“We find ourselves amidst a growing demand environment, supported by a positive real estate cycle and the Government’s unwavering commitment to infrastructure development”, Mr. Kajaria says.

In August 2023 the company started up its second Continua+ line at the Sikandrabad facility, with a capacity of 2.6 million square metres of glazed porcelain stoneware.

Read the interview published in Ceramic World Review no. 153/2023