Rajesh Mehra, Director & Promoter, Jaquar, established the company in 1986, when industry was at a nascent / unorganized stage in India. At Jaquar, Mr. Mehra’s motive was to cater changing needs and preferences in the bath fitting sector by using innovation and technology. Jaquar developed innovative advanced Flush Valves, introduced colours in faucets. Jaquar was the first company to introduce improved Ceramic disk cartridge in India by adopting the right specifications. Mr. Mehra decided to take Jaquar Globally and tied-up with the world's best companies like Glass Idromassagio from Italy, Breuer from Germany, AO Smith from USA. Apart from bath fitting industry, Jaquar also entered into concept lighting business in the year 2001. Jaquar has introduced top-of-the-line lighting products to India. Through the initiatives of Mr. Rajesh Mehra, Jaquar is able to sustain its market share of around 60% of the total industry turnover. Jaquar, was conceived way back in 1960 and has emerged not just as a market leader in the bath fittings category in India, but has also evolved as a Complete Bathing & Lighting Solutions provider.  With a turnover of Rs. 7.84bn (2009-2010), three ultra-modern manufacturing units spread across 1,03,000 sq. mtrs. with a manufacturing capacity of 30,000 units a day, 22 Orientation Centers-cum-Customer Experience Zones throughout the country, over 2000 dealers, 2701 production people, 316 sales & marketing professionals, 174 support staff, 473 customer care professionals and a fast-growing international presence from the UK & the Middle East to Africa and the Far East besides Asia, Jaquar is the only company in the Bath Fittings industry in India that has been awarded the Superbrand status thrice consecutively apart from being given the Business Superbrand recognition for the year 2008. Some of the international tie-ups Jaquar has are with Glass Idromassagio from Italy, one of the leaders in whirlpool & shower systems, AOSmith from USA, the world leader in heating appliances, Breuer, a pioneering German company manufacturing shower enclosures for over 4 decades, Aquis from Switzerland, the pioneer in Sensor technology, Docol from Brazil for water-saving taps & flush valves, SIAMP from Monaco for Concealed Cisterns and Artemide from Italy for designer/architectural lights.   Replying to Jasmine Kohli of IIFL, Rajesh Mehra says “Jaquar will be launching super luxury range of Artize Sanitaryware, premium range of Jaquar Sanitaryware and introduction of high quality wellness products, by this April.”  What is the business model for Jaquar? Jaquar works through the wide and strong network of Jaquar dealer’s present pan India. We have a huge dealer network of 1800 dealers across India from Kashmir to Kanyakumari. Apart from the same, we have a chain of 22 Orientation Center across the country. Spread over large area, Orientation centers showcases wide range of bath products in a concept and functional environment. They serve as an interface between the company and its customers i.e. architects, interior designer, builders and end consumers. Each Orientation Centre is interactive and has facilities for live demonstrations and helps customers experience bath and lighting products in its full glory. Jaquar also operates in B2B and institutional segment through dedicated and trained product and sales experts across the country with leading names in the industry.  

Brief us about the range of bath products provided by Jaquar?  Jaquar, the brand, was built on the platform of highest quality standards, aesthetics and with the intent of providing world class products Jaquar is an undisputed market leader in the bath fittings category in India by transforming the industry from merely utilitarian to inspirational and lifestyle category. With the Group’s vision to evolve into a “Complete Bathing Solutions” enterprise, Jaquar group has also successfully diversified into various bath verticals like sanitaryware, wellness range of products like shower enclosures, shower panels, showers, whirlpools, steam cabins and spa, water heaters and cisterns. Recently it has diversified into Concept Lighting- a complete lighting solution i.e. from Gate to Bathroom. A comprehensive and world class range of specialty lighting products to India through its global tie ups. Quality, World class designs and superior after sales service is the highlight of Jaquar bath products. Any scale-up plans on the cards for any specific segment?  With year on year growth and beating average industry growth by distance, Jaquar has new standard by crossing 1000 crore mark in FY11 in this domain. Apart from new range introduction in Jaquar and Artize range of faucets, company is also launching super luxury range of Artize Sanitaryware, premium range of Jaquar Sanitaryware and introduction of high quality wellness products. All such steps are leading to make Jaquar a complete bathing solutions company Among your various segments which is the major contributor to your revenue pie?  Jaquar range of faucets continues to dominate market since inception of branded faucets in the country but new verticals like wellness range of products such as shower panels, showers, whirlpools, steam cabins and spa will soon create new set of benchmark in the country.  Also, give us a break up of your revenue in terms of percentage?  Faucets have contributed over 80% in FY 10-11.  How much of your business comes from institution and retail?  Jaquar has been a first choice brand of customers and professionals from long time. 70:30 ratios of B2C and B2B. What is the ad-spend ratio?  Jaquar has always been awarded and rewarded as People’s Choice. Lot of first to its credit, Jaquar was first faucet brand to come up with TV commercial. ATL, BTL and strong retail presence through innovative product display makes Jaquar the super brand in its category. We have been spending on our Marcom almost 5% of our revenue.  Brief us about your manufacturing facility? What is the current capacity in term of pieces per annum?Jaquar has the most modern manufacturing unit and one of the biggest in Asia Spread over a total area of 10, 30,000 sq. meters, and a current average production of 40,000 faucets per day, with scope for further enhancement.  Our second manufacturing unit is coming up in Manesar and we will be starting it from end of 2011 which is expected to take the daily average production even higher. At Jaquar, we believe that it is our judicious mix of ultra modern technological set-up and the finest human resources which not only generate products of the

finest quality but also an optimal level of cost economies for our Company. The world's most advanced plant and machinery sourced from top global manufacturers and a 'no compromise on quality ' attitude results in the latest technical developments, in production processes. Any capacity expansion plans on cards?  We are basically increasing our manufacturing capacities by adding another world class unit in Manesar (close to Gurgaon) shortly. What is the market share?Jaquar is an undisputed market leader in the bath fittings category in India. Irrespective of large unorganized market and many national and international brands coming to India, Jaquar is able to sustain its market share of around 60% of the organized sector of the total industry turnover through various innovative sales and marketing initiatives. Over the years, it has also evolved itself as a Complete Bathing & Lighting Solutions provider. How do you see the competition in domestic market and overseas?  Jaquar revolutionized the bath fittings industry in India and grows at a pace of 30% to 35% every year. In the last few year India has seen various international player entering the Indian market, however we have been successful in maintaining our position and market share inspite of the foreign competition. Over the years Jaquar has become an acknowledged global brand with a fast-growing international presence in the GCC markets, Africa and United Kingdom.  Do you see any demand-supply gap?With booming urban infrastructure, demand for high quality products and few branded players, we see in India for couple of years demand chasing supply. Any plans for tie-ups or acquisitions on card?Apart from being the most advanced technology driven manufacturing company, Jaquar always delight its customer by introducing top of the line brands to India and add choice option to its customers. In series of such initiatives, Jaquar has tied up with various international players like Breuer, Glass Idromassagio and SIAMP. Is Jaquar unveiling any new designs this year?  Transforming the industry from merely utilitarian to inspirational and lifestyle category has been Jaquar biggest achievement. And in this journey product innovation in design & style has been the key feature. People always want to see something which has never existed before. So, our team is always engrossed on R&D and puts efforts to bring out the most spectacular designs. We are planning to expand Spa product range with new models, both in the upper and middle segment markets.  By April this year, we will be launching super luxury range of Artize Sanitaryware, premium range of Jaquar Sanitaryware and introduction of high quality wellness products. We have also introduced three new ranges under premium and designer bath brand Artize which are Angelo, Travina and Leone.   

Brief us about your product portfolio and your USP?Design with quality and unmatched customer service is our USP. The product portfolio comprises of  Luxury, Premium and Economical Faucets (Full-turn, Quarter-turn & Single-lever), Wellness Products (Hydromassage Systems, Steam Cabins, Shower Systems, Whirlpools), Utility Products (Glass Enclosures), Water-Saving Products (Sensor Taps), Concealed Cisterns, Water Heaters  and Lighting Products (Indoor & Outdoor comprising of Designer Lights, Architectural Lights, Chandeliers, Outdoor Lighting, Fiber Optic Lighting) which will give you a perfect gist of how Jaquar has metamorphosed bathrooms from dull and drab spaces into sparkling convenience and luxury zones.  Brief us about your after sales service model?  Leaders in customer service through unmatched service standards, Jaquar believes that a repeat customer does not happen by accident. A repeat customer is the result of a relationship you have built through excellent customer service. The customer centric services that are offered by Jaquar include:-

10 year warranty only on faucets. Issuance of warranty certificates in this category Free installation guidance Assured availability of spare parts On site plumbing guidance for projects Service Camps Preventive maintenance contracts Customer care helpline

A customer has to call on our helpline number or email us in order to connect with our technical experts. What is your marketing strategy?  We delight customer through superior products, value pricing and unmatched service standards is Jaquar Marketing Mantra. Jaquar 360 degree communication and consultative sales approach makes its marketing strategy the most robust and its leadership in this category is vindicates this point. Large numbers of orientation centre across the country to assist and educate customers, architects and builders about benefits of our products helps retain our position as the most innovator and value creator for our customer

Cera Sanitaryware Limited (CSL) is one of the pioneers in the Sanitaryware segment in India. CSL was founded in the year 1980 as a division of Madhusudan Industries Limited. Realizing the future growth prospects of this division, in the year 2001, management thought it worthwhile to have independent identity by de-merging and transferring the entire business to a new company. The new company was named Cera Sanitaryware Limited It is now the third largest company in the organised sector with over 20% market share. It is also the largest and only listed company in pure sanitaryware space. CSL is the first sanitaryware company to use natural gas and the first Indian sanitaryware company to have ISO 9002 and ISO 14001 certifications for its products.Vidush Somany, Executive Director, Cera Sanitaryware, graduated in Bachelor of Business Administration from Franklin & Marshal College - U S A. UK. He, along with SC Kothari, is actively involved in expanding the organization in a multi-throng manner thereby giving the organization a perfect diversification as it grows. Vidush Somany compliments the vision set by Vikram Somany to make Cera Sanitaryware Limited the most successful home solutions company in the coming years.Replying to Anil Mascarenhas of India Infoline, Vidush Somany says, "Cera is confident of maintaining 20% OPM in spite of the competition."Quality and design appear to be changing the dynamics of the business. What trends are you witnessing in the sanitaryware market?Indian Sanitaryware industry is witnessing a boom growing at a 12-15% growth for the last couple of years. There are generally mixed forecasts regarding the potential for the housing market, an essential driver of replacement and new bathrooms. The baths and sanitaryware market will continue to grow over the period 2006 to 2010. The new trend is that consumer?s tend to associate themselves with quality and well designed products. This has also increased the demand in the organized sanitary ware products.Besides the housing market, what other triggers do you foresee? Do you anticipate any slowdown?The essential driver is the housing market. In the next decade, India is expected to be one of the world's fastest growing countries for sanitaryware consumption. The Government?s impetus to improve hygiene and sanitation is likely to increase the demand-supply gap. Seeing this as a challenge, we think the subject of toilet is more important than other social challenges like literacy, poverty, education and employment. Think of government?s initiative where it built 650,000 public toilets with NGOs help in 25 years India, for people who could not afford building toilets. There is tremendous potential for the sanitaryware industry in India. A question of slowdown does not appear in the near future.What is your current market share in each segment? What efforts are you making to improve the same?Cera enjoys a healthy 18-20% market share in the organized sector. Cera believes in delivering the best to the consumer. With the ongoing R & Dwe plan to bring the latest user-friendly designs to the market. This, we believe, will make our brand strong with the consumer. Our Emphasis on communication is made to make the consumer realize that Cera is a household product.Brief us on your product mix and new marketing strategies?Cera has a mix of products that would cater to all needs of consumer. Cera has top end products like the Senator Collection, the Shower Temples with Jacuzzi features in them. Cera also has the Premium Collection focused at middle end users and the Regular collection which includes the

Indian EWCs as well as European EWCs for the lower end customers. In Bath Fittings, the Single Lever Bath fittings are for the elite, followed by the Quarter turn and the half turn fittings meant for people looking for more economical range. What are some of the important tie-ups you have at present?The recent Strategic Marketing tie-up with the Sanitec group, manufacturer of "Pozzi-Ginori" a designer range sanitaryware is an opportunity for Cera to cater the niche target audience, the top range of Pozzi-Ginnori products.How much does this business contribute to your revenues and profitability?It will still be too early to discuss the revenues and profitability of Pozzi.How many Cera Bath Studios do you have? Any major expansion here?Starting in the 2005, CERA Bath studios are located at 8 centres namely, Bangalore, Chandigarh, Kolkata, Cochin and Hyderabad, Calcutta, Lucknow & Mumbai. Cera also has plans of opening Cera Bath Studio, in all the other Metros and Big Cities, in the near future. Also are plans where Cera will join hands with their esteemed dealers in setting up our Bath Studios in all the cities and towns.You have the twin-flush model. To what extent does it reduce the water consumption? Do you see new regulations coming up which could boost the demand for such products?We have twin flush models that on an average consume only 4 litres of water, against the others which can use up to 6 litres every flush. That quantifies to 50% of water saving. With water scarcity in urban areas, there are a lot of initiatives that have already been taken by Metros like Mumbai. Others will have to soon follow in order to save water.Comment on your premium vitrified floor tiles. Which other segments do you plan to enter?With the launch of tiles poised to take off any time, eventually, Cera would be a complete home solution provider Company. Cera aims to become a complete bathroom solution provider in the next two years. Setting a course on this direction, Cera entered in the Bath Fittings segment last year.We are still in the process of pursuing various options, so it would be too early to comment on what are the other areas or segments we are focusing.Promoters? holding is around 54.12%. Any plans to dilute the same? What are your capex plans and how would they be funded?There are no definite plans on the promoter?s holdings. The Capital expenditure for the year was approximatelyRs.300mn. This was partly funded by the way of internal accruals and partly financed by Banks.Brief us about your plants and capacity. What is the current utilization? To what extent can you scale capacity in your existing units?Cera is the fastest growing sanitaryware company in India. Starting with an initial capacity of 3.05 lakhs pieces per year, Cera?s ongoing expansion process that would be complete in July 2007, would increase the production to 2mn pieces and 2.80mn pieces by the end of next year, making Cera the only organization to have the distinction of "Single largest Production Capacity" at one place.Your current OPM is close to 20%. In the wake of competition catching up are you confident of increasing or maintaining the same? What is the trading goods component in your sales. How are the margins here?

With the increase in production after the expansion plans and the positive industry growth Cera is confident of maintaining 20% OPM in spite of the competition. Trading goods accounted to approximately 40% of the total sales in the year ended 2006-2007What are the entry barriers? What about the unorganized market?The entry barriers for organized sector are-huge manpower requirements, since sanitaryware manufacturing is highly labour intensive, non-availability of standardized raw-materials (every manufacturer has to source raw materials from mines and have its own quality assurance systems), low market size (the market currently is estimated to be just around Rs7bn) and innumerable number of unorganized sector players who thrive partly on government policy of levy-exemption and partly on evasion of taxes.Organised sector currently contributed nearly 50% of volume sales in India. However, as quality consciousness and brand-awareness are increasing among consumers, over a period of time, the unorganized sector is likely to go up considerably.What edge do you have as far as technology is concerned? How difficult is it for others to get hold of such technology?CERA uses technology from Germany, Italy, UK and Australia, adapted to suit Indian conditions. Though it is not difficult for others to get such technology, it is the adaptation of such technology making it conducive for Indian workforce and raw materials that has given an edge to CERA over others.With other companies also using natural gas for kilns, what advantage do you enjoy?Direct connection of natural gas from GAIL has certainly helped CERA in better margins. However, this is only one of the several advantages. CERA has captive power plant using natural gas. CERA also has wind turbines. Thus CERA is not dependent on government electricity board for its power requirements. Others will take a long time to catch up.Further, CERA is getting natural gas on very cheap rate directly from the ONGC oil fields, which will continue to be cheap, wherein others are getting imported LNG which is three times costlier than what we are getting.What is the demand in the replacement market?Currently, the replacement market is estimated to be just 10% of the total market. However, as the market matures, it is likely to go up exponentially.Brief us on your international presence and exports? Any plans to set up shop abroad?CERA has exported, in the past, to developed countries like the US, huge quantities. However, as the domestic market was giving better realization, CERA has to curtail its exports. Currently, CERA has presence in several markets like Gulf, New Zealand, Greece, South Africa, etc. With the production going up in the coming months, CERA is now looking at export market more seriously and talks are on with certain parties for OE supplies.Also we do have definite plans, but it is too early now to divulge the details.Your dividend policy?The company has been giving dividends all through these years. It has increased from 15% in 2003-2004 to 22% in 2006-2007. We hope to keep the trend going.Your message to shareholders?The company is sure of surging ahead in the coming years as, and will, as always protect the shareholders interest.

Even as the Indian ceramic industry is reeling under high costs, Cera Sanitaryware is looking ahead. The sanitaryware player is bullishly looking at acquisitions and retail expansion.Vidush Somany, Executive Director, Cera Sanitaryware talks about the company's future plans in an interview withVinay Umarji. Excerpts:At a time when the Indian ceramic industry is reeling under high costs and inflationary pressures, Cera Sanitaryware is looking at acquisition. How is the move set to reap benefits in the long run?Growth is a continuous phenomena. One of the best ways to combat rising cost is through achieving economy of scales more so when we have been able to pass on the ‘Cost·Push’ on account of inflation to our dealers and distributors. Strategically, we are planning ‘In-Organic’ growth as this could turn out to be a better deal when entire Europe is reeling under financial crunch. According to our information, there may be some units available for sale at dirt cheap price. Needless to add, we are extremely cautious on this front. Any decision on these, when we take, will be well considered one.

Moving on from selling sanitary ware, the company is trying to establish itself in the luxury segment. Why? Please elaborate on the company's strategy behind it.We have been selling ‘Wellness product’ for a very long time. This is not a new thing to us. We have been outsourcing these products from China and selling under brand ‘Cera’. The response to these product has been exceedingly well and the market is growing at faster pace than conventional sanitary ware.

From a 20 odd per cent market share, where does the company see itself in next 3-5 years?We are increasing our in·house manufacturing capacity in sanitary ware from 2 million pcs per annum to 2.7 million pieces per annum. This will make us a largest plant a single location. Servicing clients from one location would give us better absorption of overheads and put us to Cost advantage vis a vis competition. Our market share is bound to rise. We are aiming to achieve and stabilize at over 30-32 per cent of the market share in 3-5 years down the line.

Apart from entering aggressively into luxury segment, is the company also looking at some other segments in the near future? If so, why?We have recently added Faucet ware in our manufacturing range. The current manufacturing capacity is 2500 pcs per day. We have ambitious plan to raise these capacity to 7500-10000 pcs per day in next 3-5 years time span.

The market size of faucet ware is more than double of that of the size of sanitary ware. Besides it has synergy with ‘Cera’s current product range which goes into the bathroom. With established

brand and settled distribution channel of over 6000 retailer dealers, we are poised to capture larger share.

The company has been opening its own 'Cera Bath Studios' across the country. What other ways is the company exploring in retailing?We may like to clarify, we are not selling any of the products directly into the retail market. The ‘Cera Bath Studio’ is only a display centre of all the products company has to offer. This allows end·users as well as architects to have a close look at the entire product range. Some the studios offer facility to actually ‘experience’ the product – touch and feel Eventually if the customer decides, he will have to go to the dealers to buy the products of his choice. This methods inspire more confidence in company’s products with committed after·sales service.

How do you think the lack of anti-dumping duty in the ceramic and sanitary ware industry is impacting the players?It hardly matters as there is no dumping at all. Ceramic sanitary ware is a bulky product. The cost of freight is a major concern rather than the any levy or duty. Some high end and designer products are able to bear this kind of cost. Now a days’ lots of people are obsessed with bathroom to be made very tastefully where cost becomes subordinate to taste and preferences.

Southern region, followed by northern region, are the highest demand generators in India's sanitary ware marketIndia is emerging as a sanitary ware manufacturing hub, with several domestic and overseas manufacturers setting up manufacturing facilities across the country due to abundant availability of raw material and low labor cost. Several domestic manufacturers such as HSIL, Cera India, etc., as well as overseas manufactures such as Roca India, Kohler India, Toto India, etc., have set up manufacturing facilities in the country.     (Logo: http://photos.prnewswire.com/prnh/20140117/663730 )According to the recently published report by TechSci Research "India Sanitary Ware Market Forecast & Opportunities, 2018", the southern region holds the highest market share, in revenue terms, of the country's sanitary ware market. Among the metropolitan cities, Delhi NCR's contribution is the highest as a result of continuing growth in hospitality, SEZ, residential and healthcare sectors. According to the report, India's sanitary ware market is projected to grow at a CAGR of around 45% during 2013-18.  The report reveals that water closets, followed by cisterns and wash basins, account for the highest revenue share in the overall sanitary ware market. However, with increasing urbanization and awareness about safe sanitation, the demand for other sanitary products such as sinks, bidets, pedestals, etc., is expected to increase over the forecast period.Indian sanitary ware market consists of both organized player and unorganized players, with organized players holding the majority share. Further, with increasing brand awareness and demand for luxurious and stylish sanitary ware, the market share of organized players in the overall sanitary ware market is expected to increase in coming years."Sanitation conditions have improved in the country, but still around 69% households in rural areas and about 19% households in urban areas in India don't have access to safe sanitation. This indicates the latent opportunity in the country's sanitary ware market," said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm."India Sanitary Ware Market Forecast & Opportunities, 2018" has evaluated the future growth potential of sanitary ware  market in India and provides statistics and information on market structure, market trends, market size, etc. The report includes sanitary ware projections and demand forecasting. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities available in sanitary ware market in India