CHAPTER 1: INTRODUCTION 1.
1 Back Ground of Tiles IndustryCeramic tiles as a manufacturing segment in the world have shown a significant growth in production. The potential seems great, especialially as House hold ,retail, IT and BPO sector have seen unprecedented boom in recent times. In srilanka tiles industry has had healthy growth of 10 -12 % regulary in past years .The main product segments are Ceramic Tiles and Porcelain tiles.Tiles are non metallic, inorganic material that are made by the infusion of intense heat on material such as Clay, Aluminium, Silicon Carbide and Tungsten carbide .
The increasing construction activity across the global is a major factor that propels growth in this market and results in its impressive market value of more than USD 136 billion by 2020.Eminent factor like the durability and ease of maintenance of tiles are gaining popular as they aid in driving market growth during the forecast period. The demand for tiles is expected to increase Laboratories, Hospitals, and Warehouses, Garment factories, Government offices and residential buildings as they are inexpensive and highly durable. Additionaly,the advent of stain and germ resistant tiles is expected to incite market growth as they are healthier and affordable when compared to regular paints.An upswing construction activity, owing to the increasing urbanization, is boosting the demand for ceramic tiles significantly across the world. TMR’s analysis shows .The global market for ceramic tiles attain a value of US$ 76.
81 Billion in 2015.Expanding at a CAGR of 9.80 % from 2016 to 2024 it is poised to reach US$ 178.1 Billion by 2024.Wall tiles ,Floor tiles, and others such as ceiling and roofing tiles are the main product available in this market .
Among these ,floor tiles enjoy the highest demand .In 2015 ,majority share of the overall consumption volume of ceramic tiles was held by the floor tiles segment .Flooring holds important in a number of applications ranging from commercial and residential constructions 1.2 Srilankan Contex Tiles industry in Srilanka has over 34 years long history in manufacturing and distribution of tiles all over the country as well as exporting many foreign countries in the world .
According to the annual reports of leading companies in the industry shows continues growth of profit in comparable with net sale .One of the main strength of the tiles industry in Srilanka is the availability of raw materials. Mainly Kaolin , Ball Clay, Feldspar , Silicon, Dolomite 1.3 Players in the market Currently there are four major domain in the tile industry in the Srilanka, Namely Lanka Wall Tile PLC (LWTPLC ), Lanka Tile PLC (LTPLC) , Royal Ceramic Lanka PLC (RCLPLC ),Macksons tiles Lanka (Pvt) Ltd(MTLPVT) . Samson Rajarata Tiles (Pvt) Ltd.(SRTPVT) (In addition to that there are many importers play in the market. Beside this, there are many hundred of dealers and distributors as downstream partner and over two hundred direct suppliers as a upstream partners in the supply chain process in the tile industry 1.3 Macksons tile Lanka (Pvt) Ltd (MACKTILES)Macktile Lanka (Pvt) Ltd is engage in the design and manufacture a wide variety of floor tiles for both commercial and household used Under the MACKTILE Brand.
Sophistication, aesthetics and durability from the cornerstone of MACKTILE perfectly manufactured tiles. As a one of the largest companies engaged in the manufacture of tiles Srilanka, MACKTILE are powering the tile industry through modernization and design They understand the sense of consumer insight through their living and working space and extend them the wide choice of colors, textures and design manufactured in state of the art manufacturing facilities,MACKTILE Endeavour is to provide product that delight the customers instantly. In order to achieve this superlative level of customer satisfaction, have instilled modern system and processes along the value chain, ensuring inflexible quality control, strongly monitoring by a skilled and professional team.
Company driven by the purpose to transform the interiors of residential and commercial space with the impeccable trademark of MACKTILE 1.4 Common Tiles Categories In Srilanka Market 1.5 Factors Accountable for Consumer Buying Behavior • Home decorations or commercial purpose • Laying Place (Bed room, Dining room, Feature wall, wash room, Kitchen, floor ,Wall etc)• How to purchase (Retail, Contractor, Online )• Transport & Discount• After sale service• Brand• Quality• Price• Design• Reasons for tiles used to decorate the home (Beutifull /Cheap/Durability/Diversity)• Comparing with Alternatives• Tiles Category (Earth ware tiles /Terracotta Tiles/Fully vitrified Tiles /Glazed Tiles /Stone Ware Tiles )• Size (30 cm x 30 cm / 40 cm x 40 cm etc)• Surface Appearance (Wood /Stone etc )• How large the area• Product continuity (Re manufacturing )1.6 Tile SelectionTiles are classified under a Porcelain Enamel Institute (PEI) rating for suitability of fixing in a particular locations .But through body Porcelain tiles (Vitrified /Homogeneous) tiles do not have PEI Rating due to very hard wearing Not all ceramic or Porcelain Tiles are suitable for all kind of floor areas-PEI rating CLASS 1 – Residential and Commercial wall and bare foot traffic CLASS 2 – Wall and Residential bath floor, soft soled traffic CLASS 3 – All residential floors and Light Commercial CLASS 4 – Medium Commercial, Light Industrial and Institutional, moderate soiling CLASS 5 – Extra heavy traffic, abrasive dirt, chemically more resistant1.7 Types of Tiles (Product Segments) in Srilanka Market 1.
Ceramic Wall Tiles 8 % 2. Ceramic Floor Tiles 17 % 3. Vitrified Tiles 43 % 4.
Porcelain Tiles 14 % 5. Glazed Tiles 18 %1.6 Market Size (Volume ) of Key Players & MACKTILES (%) 1.7 Market Size (Value ) of Key Players & MACKTILES (Rs .Min )