Interview with Mr. Madhur Daga, Managing Director, Orient Bell Limited
Established in 1970s, Orient Bell Limited is one of the largest manufacturers of ceramic and vitrified tiles as well as the first to manufacture ultra-vitrified tiles in India. Orient Bellhas a successful market share of 6.0% (7th largest) within the organized market segment, marking an overall market share of 50% in the tile market. Mr. Madhur Daga, Managing Director, Orient Bell Limited has shared his views with Realty Plus on the current market scenario of the ceramic industry.
After the recent slowdown in the real estate sector due to policy changes, what is the way ahead for the tiles and ceramic industry to sustain and prosper?
The recent policies have had a direct impact on the Real Estate Sector and on the tile industry as well. Yes, there was some temporary slowdown on real estate due to several policy changes including demonetization, but there is a silver line which is clearly visible thanks to Govt. policy changes like reducing interest rate on Home loan, subsidy under Pradhan Mantri Awas Yogna etc. So, we can expect a double digit growth in top line from next year itself.
To what extent will the recent GST cut in the ceramic industry impact the demand?
Initially, it affected adversely for some period but the GST on Ceramic tiles have been reduced recently. Moreover, it is beneficial to the organized players like us. As builders can avail the benefit on GST paid towards purchase of tiles, there will be increase in demand expecting in Q4 onwards.
What are the global trends and new technologies emerging in tile industry?
Tile manufacturing technology is changing very fast. Now the polished/unpolished glazed vitrified tile is becoming very popular among the customers. With the digital printing machine technology, ceramic tile industry is now able to deliver customized product at shorter notice and at reasonable prices. The polishing of tiles are so improved that tiles are becoming a replacement of Italian marble due to its aesthetic look. Virtually best of marbles can be easily imitated by available technologies. In fact tiles surface, texture and design can imitate all surfaces.
What are the new designs of tiles offered by OBL?
OBL is known for its innovation. We have all kind Ceramic wall, Floor, GVT- both polished and unpolished, Double charged and all other king of vitrified tiles in varied sizes. We have a wide collection of texture and designs. Our tiles are available in matt, rustic, glossy, super glossy etc. suitable for different applications. We have concepts suitable for kitchen, bathroom, exteriors etc. We would request our esteemed customers to visit nearest OBTB or website to experience the entire range of products. Our ceramic tile size ranges from 200X300 to 300X600mm and floor & vitrified from 300X300 to 1200X24000mm.
How was the performance of OBL in the recent market conditions? And what do you expect in future performance of the company?
There is a tough time for the industry during H1 of this FY and we were not exception. But with the new strategy undertaken and favorable market condition owing to several Government policies, we expect a bright future of the company. A double digit growth is expected in near future.
Is the market for ‘Eco-friendly tiles’ growing in India?
Yes, because of the consciousness of our esteemed customers, we see the market of eco-friendly tiles is growing. Our roof tile is going to save electricity for running AC by reducing the inside temp. Our life tiles are also becoming popular slowly. These tiles reduce the pollutant gases like NOx and CO2 and make the air healthy.