Ahmedabad (Gujarat) [India], September 25 (ANI/NewsVoir): Asian Granito India Limited (AGIL), manufacturer of one of India's leading tiles brand is banking big on the 'Bharat' markets to drive the sales growth post unlocking of the economy.
Company is confident to drive the volume growth on the back of its strong presence and demand recovery in the rural and semi urban markets. Lower spread of COVID in rural areas, improvement in repairs and renovation activities, good monsoon and better sowing of Kharif crops, agriculture reforms are likely to drive the growth.
Rural, Semi Urban, Tier II and Tier III towns contributed over 70 per cent of company's sales in FY20. Company expects sales from these markets to improve further in the current fiscal year to offset the slack in demand from metros and mega cities. Metros and Mega cities contributes less than 30 per cent of company's sales.
Highlights: Rural, Semi-urban, Tier IIIII towns contributed over 70 per cent of company sales in FY20 With a focus on Vocal For Local, company has launched "Atmanirbhar Program" with an objective to drive sales in semi-urban and rural markets Company is planning to increase its retail touchpoints from 6,500 to 10,000 plus in next 1-2 years Anti-China sentiments, Reduction in gas price, strong export orders to drive business for the sector"Despite challenging economic and business environment company delivered good performance. Company's strong presence in the rural and tier II cities, focused on the progressive middle class of the country and good export demand helped the company. While demand from metros and mega cities have taken a hit post-COVID, demand from rural and semi-urban markets have remain intact. Post-COVID, there is a new demand emerging from rural market as migration oflabours from urban to rural resulted in need for home repairs and renovation. We have observed that budget and economic tiles seen good demand with construction and repair activity taking full pace in the rural market. Green shoots are visible in the demand especially from ruralsemi-urban markets, fewer cases in the rural areas, better employment prospects have further brighten up the prospects of the recovery in rural markets," said Kamlesh Patel, Chairman and Managing Director, Asian Granito India Ltd.
Company has taken many initiatives aimed at strengthening its team including workeremployees and their families, dealer-distributor network, business partners.
With a focus on Vocal for Local, company has recently launched "Atmanirbhar Program' to further strengthen its presence in the rural and semi urban markets. "For the first time in India that such a digital marketing campaign was launched by a ceramic company. Through this AGL has taken this new initiative to let people earn by working from home and become its business partners for growth. The program is aimed at reducing marketing cost and increase profitability while generating employment opportunities in the rural India. Pilot project was launched in Idar and Bhavnagar in Gujarat and company aims to launch this pan India in the coming time," said Mukesh Patel, Managing Director, Asian Granito India Ltd.
Anti-China sentiments and reduction in the gas prices are likely to be game changer for the Indian ceramic industry. China dominates in the World ceramics market covering about 55-60 per cent of the global market. India ranks second and produces 12.90 per cent of the global ceramic tiles output.
"Currently many countries are avoiding purchases from China such as US, European countries, Middle Eastern countries and they are turning to India. With anti-china sentiments across the World and USA imposing heavy duties on tiles from China we anticipate huge export potential for Indian companies. The recent reduction in the gas price will also make Indian tiles more competitive in the world market and will be a major catalyst in export business. The move will reduce the total costs by 3-5 per cent and help improve the profitability of the overall sector in a challenging environment," said Prafulla Gattani, Executive Director, AGL Global Trade Pvt Ltd.
Asian Granito India Ltd offers widest range of products including, ceramic floor, digital wall, vitrified, parking, porcelain, glazed vitrified, outdoor, natural marble, composite marbleQuartz, etc. Further to leverage the synergies, the company has entered in sanitary ware and recently, the company had launched the CP Fittings and Faucets division to provide 'Complete Bathroom Solutions' under brand AGL. Company has set a target to increase its touchpoints to over 10,000 from 6,500 currently, expand the network of exclusive showrooms to 500. The company expects higher sales in coming quarters due to its dominance in BC class cities and focused penetration in the market.
Established in the year 2000, Asian Granito India Ltd. (AGIL) has emerged as India's leading home decor brand in a short span of two decades. The company manufactures and markets a wide range of Tiles, Engineered Marble and Quartz. AGIL products are synonymous with reliability, adaptability, innovation, quality consciousness and the company has created a strong brand identity, well recognized globally and loyal customer following across segments.
Ranked amongst the top ceramic tiles companies in India, AGIL has achieved nearly 40 times growth in its production capacity, from 2,500 square meters per day in the year 2000 to nearly 95,000 square meters per day, as of now. AGIL was also the only tiles company to be acknowledged in the Vibrant Gujarat Summit 2015 for phenomenal growth.
The Company has 9 state-of-the-art manufacturing units spread across Gujarat and 300 plus exclusive showrooms, 13 display centers across India. Further, the company has an extensive marketing and distribution network.
The company looks to strengthen its identity as the leader in the Indian ceramic industry by consistently introducing innovative and value-added products in the market to keep pace with its valued customers. Headquartered in Ahmedabad, AGIL is listed on NSEBSE and reported net consolidated turnover of Rs 1224.5 crore in 2019-20. Company exports to 100 plus countries.
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