Asian Granito Targets Strong Sales Growth from ‘Rural & Semi Urban’ Markets

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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% of the 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% of company’s sales.

Mr. Kamlesh Patel, Chairman and Managing Director, Asian Granito India Ltd said, “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 of labours 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 rural & semi-urban markets, fewer cases in the rural areas, better employment prospects have further brighten up the prospects of the recovery in rural markets.”

Company has taken many initiatives aimed at strengthening its team including worker & employees 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 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 Mr. 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 percent of the global market. India ranks second and produces 12.90% of the global ceramic tiles output.

Mr. Prafulla Gattani, Executive Director, AGL Global Trade Pvt Ltd said, “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% and help improve the profitability of the overall sector in a challenging environment”.

Asian Granito India Ltd offers wide range of products including, ceramic floor, digital wall, vitrified, parking, porcelain, glazed vitrified, outdoor, natural marble, composite marble & Quartz, 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 touch points to over 10,000 from 6,500 currently, expand the network of exclusive showrooms to 500. The company expects higher sales in the coming quarters due to its dominance in B&C class cities and focused penetration in the market.

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