SUMMER INTERNSHIP REPORT

“To Study market research on Ceramic tiles industry and dealers

preference towards tiles selection.”

Done At

Somany Ceramics (Kanpur)

By

Utkarsh Patel

(DM21E19)

Under the guidance of

Anand Sir

(Area Sales Manager)

 TO WHOMSOEVER IT MAY CONCERN

This is to certify that project report titled “To Study market research on Ceramic
tiles industry and dealers preference towards tiles selection” is an authentic work
carried out by Mr. Utkarsh Patel from PGDM-Marketing of IAEER’s Pune Institute Of
Business Management, Pune- 412115, as a fulfillment of PGDM Course, Semester 2.
He has worked under our guidance and satisfactorily completed his/her project work.
 ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without
the kind support and help of many individuals and organizations. I would like to extend
my sincere thanks to all of them
.
I am highly indebted to Mr. Anand Sir for his guidance and constant supervision as
well as for providing necessary information regarding the project and also for support
in completing the project.

I would like to express my gratitude towards my parents and members of PUNE

INSTITUTE OF BUSINESS MANAGEMENT for their kind cooperation and
encouragement which helped me in completion of this project.

I would like to express my special gratitude and thanks to my faculty and guide Mr.
Riddhiman Mukhopadhyay for guiding me in this project.

My thanks and my appreciation also goes to my friends in developing the project and
people who have willingly helped me out with their abilities.

Utkarsh Patel
DM21E19
 CONTENT TO BE COVERED

● Acknowledgement
● Project Synopsis
● Key Learnings
● Sector Information
● Government Initiatives
● Porter’s 5 Forces Analysis
● History & Introduction Of the Company
● Top Management Of The Company
● Products Offered
● STP
● Promotional Mix
● Recent Merger & Acquisition
● PESTEL Analysis
● SWOT Analysis
● 4 P’s Of Marketing
● Unique Selling Proposition
● Research Methodology
● Conclusion
● Suggestion
 PROJECT SYNOPSIS

Project Title: TO STUDY MARKET RESEARCH ON

CERAMIC TILES INDUSTRY AND DEALERS
PREFERENCE TOWARDS TILES SELECTION.

Company Name : SOMANY CERAMICS

Student Name : UTKARSH PATEL

Student Roll No : DM21E19

Guide Name : ANAND SIR

Project Guide Designation:AREA SALES MANAGER

Confidential Report (Yes/No) : NO

Duration of project : 60 DAYS

SIP KEY LEARNINGS-

● Company Information
● Customer Interaction
● Sales & Distribution Process
● Personal Selling Process
● Reporting Structure
● Purchasing Orientations
● Purchasing Practices
● Decision Making Unit
● Factor Influencing Price Unit
● Influencers In Buying Process
● Types of Buying Situations
● CRM Practices
● Objection Handling
● Sale Closing Technique
● Customer Follow-up
● MIS
● Managing Industrial Distribution
● Role of Market Research
● Impact of Technology
● Inventory Management
● Customer Interaction
● Cold Calling
● Sector Information
● Pressure Handling

Sector Information
The global ceramics market size was USD 123.08 billion in 2020. The global impact of
COVID-19 has been unprecedented and staggering , with the product witnessing a
negative demand shock across all regions amid the pandemic.Based on our analysis,
the global market exihibited a huge decline of 5.3% in 2020 as compared to the
average year-on-year growth during 2017-2019. The market is projected to grow from
USD 130.19 billion in 2021 to USD 219.19 billion by 2028 at a CAGR of 7.7% during
the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s growth
and demand , returning to pre-pandemic levels once the pandemic is over.
Market Size, Market Share & Sector Contribution to GDP

A report by Fortune Business Insights™ titled, “Ceramics Market Size, Share &
Industry Analysis, By Type (Traditional, Advanced), By Application (Tiles, Sanitary
Wares, Abrasives, Pottery, Bricks & Pipes, Others), By End-Use Industry (Building
& Construction, Industrial, Medical, Others) and Regional Forecast, 2019-2026,”
states that the market was worth USD 133.20 billion in 2018 and is expected to
reach USD 243.12 billion by the end of 2026.
The global ceramics market is projected to grow from $130.19 billion in 2021 to
$219.12 billion by 2028 at a CAGR of 7.7% in forecast period, 2021-2028.

This market is highly dependent on the construction industry. However, the

building & construction activities were Inquire Befc shut owing to the lockdown
regulations from various governments globally during the pandemic. The closure of
manufacturing facilities of the product has further decreased product demand
globally. According to the data published in the Ceramic World Review, the global
production of tiles decreased to 12,673 million sq.m. in 2019 and is Personalize
estimated to further decrease to 11,600 sqm, in 2020. This factor has decreased
the demand from the construction induntry Furthermore, the business slowdowns
in steel automotive, electronics, and aerospace industries affected the market
negatively However, the market is expected to regain its momentum by 2022.
 Government Initiatives

The ‘Swachh Bharat’ campaign launched by Prime Minister Narendra Modi will have a
positive impact on the Indian ceramic industry as the initiative is likely to generate
demand for tiles and sanitary ware, according to an industry expert.
“As the government is now stressing on clean India mission, having toilets and better
sanitation, the Swachh Bharat mission will definitely have a positive impact on ceramic
tiles and sanitary ware sector. We are expecting a huge demand for these products in
coming years,” ceramic industry expert and VDMA India’s Managing Director Rajesh
Nath told reporters on the sidelines of ‘Indian Ceramics-2015’ exhibition here.
According to him, the ceramic sector in India saw a dip in growth last fiscal due to
overall economic scenario and lesser than expected investment in construction sector
“Last year, there was not much development in the country. The GDP too fell below 5
per cent. We saw very less investment in the construction sector. This overall
economic scenario also left its impact on tiles and sanitary ware sector,” said Nath.
“Against the average growth rate of almost 7 to 8 per cent in the past, this segment
registered just 3 to 4 per cent growth last year,” he said.
However, he feels the industry will make a comeback in the 2015-16.
.

Porter’s 5 Forces Analysis

Threat of New Entrants-: Threat of new entrants in this Industry is low because-
● The industry is highly capital intensive as new manufacturers will require to set
up their plants.
● Major players have developed brand equity so it is difficult to position the new
brand in the market.
● Brand loyalty is moderate so the threat of new entrants is low.
● Make in India policy.

Bargaining Power of Suppliers-: Bargaining power of suppliers in this Industry is low

because-
● Product differentiation is very low in this sector.
● By changing the input, firms cannot drastically differentiate on price.

Rivalry Among Existing Competitors-: Rivalry among existing competitor is High in

this Industry is low because-
● Continuous innovation leads to intense rivalry
● Homogeneity in product and low switching cost.
● Many well established competitors.
● Interference of local players.
Threats of Substitutes-: Threat of substitutes is high in this Industry because-
 ● Buyers have a huge propensity to substitute.
● Technology advancement.
● Involvement of local players.

Bargaining Power of Buyers-: Bargaining Power of Buyers is high in this Industry

because-
● Use of the Internet to get all the information enables customers to be powerful.
● Switching cost are rather negligible and competing on price alone is no longer a
key to success brand recognition and innovation helps to attract first-time
customers.

History And Introduction About The Company

Somany Ceramics Limited (formerly SPL Ltd) a part of H L Somany Group is into
manufacture of ceramic tiles. It was incorporated in 1968 by Kolkata based Somany
Group in collaboration with the UK based Pilkington Tiles. It came into the total control
of Somany Group in 1995 with the divesture of entire stake in SPL Ltd. by Pilkington
Tiles Holdings UK in favour of H L Somany and his group of companies. Somany
Ceramics is a manufacturer and trader of a complete decor solutions and its extensive
range of products include Ceramic Wall and Floor Tiles Polished Vitrified Tiles Glazed
Vitrified Tiles Sanitary ware Bath Fittings and allied products. It has manufacturing
plants in Kassar (Haryana) Kadi and Morbi (Gujarat).SPL the second largest ceramic
tile manufacturer in the country diversified into the manufacture of Value added
Vitrified Tiles in 1999-2000 and also put up a Floor Tiles plant at Kadi during 2000-01.
For Vetrified procelain tiles it has put up a one million square metres per year
manufacturing capacity. The technology for Vitrified tiles has been sourced from
Leonardo Ceramica Italy.SPL acquired Orient Ceramics and Industries (OCIL) a
company manufacturing tiles located at Sikandrabad in Uttar Pradesh. The company
started producing floor tiles from its Kassar Unit in 1992 as per its expansion and
diversification plan. It also doubled the capacity of this plant to produce floor tiles as
such to cater to almost all segments of the floor tile market.During 1995-96 SPL set up
a 5000 sqm/day wall tile unit at Kassar. This unit is capable of producing large size
wall tiles which have already been launched in the market and well received.
Company has introduced High abrasion resistant floor tiles (PEI V grade) several new
designs special effect & better product. The 2.25 million SqM of floor tiles at Kadi plant
in Gujarat was commissioned in Nov 2001. During 2002-03 the company has
commissioned the expanded its floor tile to 12000 Sq mtr from 6000 Sq mtr by
replacing the old plant producing wall tiles in tunnel kilns.During FY 2014 the
Company raised Rs. 499999990/- by way of issuance and allotment of 4347826 fully
paid-up equity shares of Rs. 2/- each at a premium of Rs. 113/- per share on
preferential allotment basis to M/s Latinia Ltd. Mauritius on 19 February 2014.M/s
Amora Tiles Private Limited a subsidiary company in which the company acquired
51% equity stake during the year started manufacturing of ceramic wall tiles at its
plant in Morbi Gujarat from 7 March 2014.During FY 2016 the company added access
to 8.29 million square meters of tiles as follows

About Top Management Of The Company

Products Offered
Products offered by SOMANY CERAMICS are as follows-:
● Floor tiles
● Wall tiles
● Bedroom tiles
● Living room tiles
● Kitchen tiles
● Kids room tiles
● Outdoor and Terrace tiles
● Terrace wall claddings
● Steps tiles
● Bath fittings
● Toilets
● Basins
● Vanity cabinets
● Cisterns
● Urinals
● Faucets
● Showers
● Bath fitting accessories
● Green products
● Dispenser and sanitizer
● Presmatic Faucet
● Water heaters
● Cleaners
.