An Assignment On

Sanitaryware industry

 Introduction
The sanitary ware market in India has grown rapidly during the last 5-6 years, with key players doubling their production capacities. India has emerged as a major bath and sanitary ware market in the Asia-Pacific region. The organized sector comprises more than half of the total market by value. The major threat for the industry is from the unorganized sector, which provides products at low prices. In terms of market value, organized players lead the market but on the other hand in terms of volume, unorganized players hold the major share. Housing and institutional sectors are the major growth drivers. At present, housing demand is rapidly rising and with increasing purchasing power people have started taking interest in premium sanitary ware products. Sanitary ware demand comes from new projects as well as from replacement market.

 Major Players
The sanitary ware industry in India is divided in two sectors, organized sector and the unorganized sector. Organized sector  In india organized sector consisting of 5 major companies;  M/s. Hindustan Sanitary Industries Limited,  M/s. E.I.D. Parry,  M/s. Swastik Sanitarywares Limited,  M/s. Madhusudan Ceramics,  M/s. Neycer India Limited), These companies manufacturing sanitary ware for the last 15-20 years and have established their Brand image. The organized sectors produce fully vitrified sanitary

wares, using latest technology and best of Ceramic Raw Materials available in India. Many other players had entered the organized sector, but most of them have since been taken over by the majors. The large foreign players like American Standard, Toto, Villeroy and Boch have also set up distribution channels in India.

Unorganized sector  The unorganized sectors have adopted local Indian technology to manufacture the basic sanitary ware products. Since the availability of raw material is in abundance and also very cheap in the state of Gujarat & Rajasthan, various companies have established their factory in these areas. They are producing the basic sanitary ware in various brands.

 Market Share
 Unorganized sector's percentage of production capacity and also their sales in the local domestic market are higher than that of the organized sectors' sales. Unorganized sanitary ware manufacturer comes under small sectors and hence enjoy the benefit of Nil Excise Duty and Sales Tax and hence they sell their products in the domestic market approximately 70% cheaper than the organized sector products.

 Future Demand
 In the next decade, India is expected to be one of the world's fastest growing countries for sanitaryware consumption. The sanitation penetration has more than trebled from 8% in 1982 to 18% in 1994 and to 29% in 1999. The market size is estimated to be Rs. 12 bn, while demand for sanitary ware in India is growing at 12% -15% every year.

The government impetus to improve hygiene and sanitation is likely to increase the demand for sanitary ware in India. Moreover the increasing urbanization of India and the consequent requirement for residential and commercial buildings will be a major driver for growth of sanitary ware. Along with this the focus of the central and state governments to provide housing facilities to the poor, is also expected to generate demand. The cost of producing sanitary ware in India is substantially low as compared to the advance countries, because the labour cost and the basic raw materials for manufacturing quality sanitary wares is available at very cheap rate and in abundance. Because of our low cost of production, Indian sanitary wares are very competitive in the neighboring countries and hence export from India is also growing everyday. It is estimated that there is currently a demand for 20 million housing units in India. Further, a significant number of the 115 million housing units across the country will need reconstruction for improvement. Therefore a replacement market will emerge, though currently original equipment sanitary ware market accounts for nearly 90% of the market.

 Sanitary Ware Statistic:

1.

World production:

187 Million pieces

2.

India's Share:

6.7 Million Pieces.

3. World ranking (in production): not in the Top 10 (India A/c for 3.30%)

4.

Global Industry Growth Rate:

5-7%

5.

Growth Rate (India Domestic Market): Organized sector: % Share of Production:

10%

6.

43%

7.

Unorganized sector: % Share of Production: 57%

HINDWARE
Overview
The flagship company of the Somany Group, HSIL limited(formally Hindustan sanity ware & industries limited) was established in 1962 post a joint venture with twyfords, UK, soon it grew to become the largest manufacturer of sanitaryware products in india with leading market share of 42%. The first Indian company to manufacture vitreous china sanityware, HSIL has now involved to a comprehensive Bathroom solutioins company. In March 2009, the company name changed to HSIL Limited".

The companys obsession with quality has translated into strong brand credentials. By maintaining high consistency in quality standards, HSIL has been successful delivering products that speak themselves. With wide range of products under its existing Hindware and Rassi brands, HSIL also enjoys strategic association with keramag (Germanys largest selling sanitary warebrand) and Teuco(the global leader in wellness products) in India, best known for reliability, durability, performance and aesthetic appeal, hindware products are perfect choice for bathrooms & kitchen .

Product portfolio
1. The Company is the most respected sanitaryware manufacturer in India today. 2. It diversified into the manufacture of glass containers through the acquisition of Associated Glass Industries Limited in 1981. 3. It widened its product basket with a range of bathroom and kitchen appliances products, leveraging the power of the Hindware brand. 4. It expanded in the retail business of Specialty Home Interior Solutions in 2007 through a wholly owned subsidiary, called Hindware Home Retail Pvt. Ltd. (HHRL). Its first store commenced operations in May 2008 under the EVOK brand. Products;  Sanitaryware products  Faucets products  Wellness products  Tiles products  Kitchen appliances In sanitarware hindware has 3 major brands, namely

In sanitary ware there various products like europian water closets, Cisterns, washbasins. Urinals and squatting pans/bidets are introduced by Hindware

Prestige
1. The Companys Hindware brand has been recognized as a Super brand for the last four years in a row. 2. It holds a significant market share in all the business verticals of its presence. 3. Its institutional customers in the Building Products Division comprises of reputed builders like DLF, Unitech L&T, Rahejas and Puravankara. 4. Its institutional customers in the Container Glass Division (AGI) comprises brandenhancing names like Coca Cola, Pepsi, GlaxoSmithkline, Pfizer, AstraZenca, Ranbaxy, Dr Reddys Laboratories, Hindustan Unilever, Priya, Global Green, Continental Coffee, Reckitt Benckiser, Seagram, Sab Miller, McDowell, Shaw Wallace and United Breweries to name a few.

Public holding
1. The Companys shares are listed on the Bombay Stock Exchange and the National Stock Exchange.

Presence
1. The Company is headquartered in New Delhi, supported by four regional offices and four area offices. 2. It derived nearly 89.87% of revenues from within India and

10.13% from exports to 54 countries in 2007-08

Distribution Channel Network

It possesses the largest distribution network in Indias building products industry, supported by 1086, 4109, and 6000 dealers, sub-dealers and retail outlets respectively.

is the exclusive brand mega store brought to you by Hindware. Hindware Lacasa is place for home makers, architects, interior designers and business buyers to envision, and then explore Hindware's dream products for kitchens and baths. Hindware Lacasa brings brand Hindware closer to the consumer and it promises to be completely different experience for them.The stores showcase the best range of Hindware products across all categories and offer first-hand experience of product features and performance. The stores showcase Hindwares elite product range across all categories including sanitaryware, wellness, and faucet and kitchen appliances segment. Today, consumers not merely buy products or services, they buy an experience. Being a market leader in the industry, Hindware offer a unique experience to their customers. They understand the need of the consumers in a better way and use our research and long experience to provide them with the best. With the chain of Hindware Lacasa stores, they anticipate to come closer to their customers. These are display and concept stores where they provide live experience of hindware products. The stores offer first hand experience of product looks, features and performance.