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 [LINK_ANNUNCIO_ID=11085]one of the top ten producers worldwide[/LINK]. 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