Image Source : FILE Bombay stock exchange building
The Indian ceramic tile market is estimated to grow at a CAGR of 8.6 per cent and reach $7,144.7 million by 2027. According to a report by ICICI Securities, the margin uptrend will continue as input prices remain benign. Looking to cash in on the growth opportunity, Delhi-based Exxar Tiles has announced the unveiling of a new showroom in Mumbai as part of its expansion spree.
According to an exchange filing, Exxaro aims to capitalize on premium products that continue to be key strategic priorities.
In another related development, it has secured a new order worth Rs 400 million from GVT slabs.
“Expansion of the geographic footprint will drive both the topline and bottomline. Product innovation remains a key focus area. The premium product mix has yielded higher per-unit value on margins,” Mukesh Patel, chairman, said in a statement on BSE.
The statement added that Exxaro is also looking towards developing export markets as demand for its products remains robust in the USA, resulting in improved exports for the region.
The ICICI Securities report said that tile volume is likely to grow double-digit in the current financial year. Industry players have reported a modest demand environment in the first quarter that ended on June 30.
The industry remains optimistic about demand improvement going forward due to the continued uptick in the real estate market, higher preference for organised players, and fewer domestic competitive pressures.
The tile report added that exports remain on a strong footing as export value grew 26 per cent on a Y-o-Y basis (as per GoI data) in the April-June quarter, whereas domestic tile industry growth was flat.
“Tile exports continue on a strong footing, with volume growth expected to remain buoyant in the near term,” the ICICI Securities report said.
Meanwhile, Exxar shares on Friday finished 13 per cent higher at Rs 144.90 on the BSE. It has delivered a return of more than 25 per cent in just two weeks.
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