Elaborative SWOT Analysis of Kajaria Ceramics – The Largest Manufacturer of Ceramic Tiles In India

Quick Stats on Kajaria Ceramics

Founder	Ashok Kajaria
Year Founded	1988
Origin	India
No. of Employees	1000-5000+
Company Type	Public
Market Cap	Rs15,876.15 Crore (2022)
Annual Revenue	Rs2,574.75 Crore (2021)
Net Income/ Profit	Rs308.90 Crore (2021)

 

Products by Kajaria Ceramics

• Ceramics Wall tiles.
• Kajaria Vitrified tiles.
• Glazed vitrified tiles.
• Polished Vitrified tiles.

Competitors of Kajaria Ceramics

• Rasa Floors
• Redi Carpet
• Altro
• IVC Group

As now we have a better understanding of Kajaria Ceramics, let’s look into the SWOT Analysis of Kajaria Ceramics.

SWOT Analysis of Kajaria Ceramics

A SWOT analysis identifies a company’s strengths, weaknesses, opportunities, and threats. A proven and true management paradigm that allows Kajaria Ceramics to compare its business and performance with competitors and the industry as a whole.

To better understand the SWOT analysis of Kajaria Ceramics, refer the SWOT infographics image below.

So let us go ahead and first have a glance at the strengths of Kajaria Ceramics from the SWOT analysis of Kajaria Ceramics.

Strengths of Kajaria Ceramics

• Outstanding Quality: Kajaria has been synonymous with quality and creativity. Kajaria has been in the Indian market since 1988 and has tremendously grown to its potential due to its exponential quality and creative ceramic/vitrified tiles options. This way Kajaria Ceramics has created an identity in the market for its finest tiles.
• The largest Producer in India: It is India’s largest producer of ceramic and vitrified tiles. Kajaria offers more than 3000 vitrified tiles options in the market, with its wide range of variety it is one of the largest manufacturers of vitrified tiles in India.
• Variation of the Product: Kajaria tiles are available in a variety of colours and patterns to match bathrooms, kitchens, living rooms, corridors, and study rooms, among other places. They have multiple manufacturing units spread across different locations in India including states like Rajasthan, Andhra Pradesh, Uttar Pradesh etc which advantages them with multiple varieties of products.
• Extensive Achievements: Kajaria Ceramics is India’s only company to have won the Superbrand Award multiple times i.e. almost 12 times in a row and it is also Asia’s Most Promising and certified ceramic tile brand. These achievements have created a positive brand image and trust in the brand among its current and potential customers.
• Quality Packaging: Their packaging of tiles can minimise the loss due to breakage in transportation. Each box of tiles is packed in a carton and then each box is shrink-wrapped to ensure the safety of the material. 
• Motivated Employees: The employees of Kajaria Ceramics are highly motivated, independent and appropriately to the brand and product range. The brand ensures delivery of premium service and drives profitable growth.
• Controlled Expenses: Kajaria Ceramics has multiple production sites with flexible, capable and cost-effective production levels. To maintain a low level of operational gearing the company maximises its overall efficiency.

• Brand Ambassador: Kajaria Ceramics has appointed one of the most premium superstars of the Bollywood industry – Akshay Kumar as its brand ambassador. This has helped Kajaria to get immense popularity in the market and a good customer base.
• Agile Investment: The investment by the brand is always agile to ensure long-term quality and sustainability, whilst maintaining a focus on the cost of capital and return on investment.
• Distributiоn & Reасh: Kajaria Ceramics hаs а lаrge number оf оutlets in almost every stаte, suрроrted by а strоng distributiоn netwоrk thаt mаkes sure that its products аre available easily to a large number of сustоmers in а timely mаnner.

Weaknesses of Kajaria Ceramics

• Limited Operations: Though Kajaria has its exports to 35 countries outside India it has not yet been able to tap the two biggest markets abroad. In India, Kajaria Ceramics has had a huge business and reputation for more than the past 30 years but expansion to other countries like Africa is yet not taken. 
• Higher Price: Kajaria Ceramics has been in the business for more than three decades and has created a reputation of its own. In exchange for the reputation, Kajaria Ceramics has also priced its products pretty high considering its reputation. As Kajaria has created a worldwide reputation its products are priced a little high as compared to other competitors.  
• Tough Competition in Marketing: Ceramic tiles are something that has now become a competitive market. Kajaria Ceramics was one of the initial players in the business, but now there have come a lot more brands that are producing a similar line of products with great branding strategies. There is very stagnant competition in the market as multiple brands are sustaining their place in the same kind of product line.
• Limited to Traditional Product: Being one of the oldest players in the business Kajaria Ceramics has surely created a remark in the market, but though they have managed to sustain success for all these years their product is somewhere traditional. Kajaria ceramics has a product range of tiles but if it decides to expand to another way like floor carpet and other technologies it would act as an advantage. 
• Stagnant Competition: Kajaria Ceramics has established itself as one of the top in its industry. Though they have built a reputation for years, maintaining that reputation and keeping an ongoing pace of growth is not easy. The market where Kajaria Ceramics is exploring has tough competition from the other new competitors with more modernised products.

Opportunities for Kajaria Ceramics

Opportunities are potential areas for companies to focus on to improve results, increase sales, and ultimately profit.

• Opportunities in the International Market: Kajaria Ceramics has been operational in India for more than 30 years. They have seen many seasons and years of change in choices and have tried to keep up with changing needs and requirements with their exponentially great quality and design of the product. Kajaria Ceramics can expand into African and Asian countries by leveraging its global operations.
• Engagement in the Global Market: It should engage in global advertising initiatives to help boost brand knowledge and recall, though it has its exports across the world it would be advised if they focus more on those markets as they can drive a lot of money flow to the business. 
• Mergers & Acquisitions: Kajaria Ceramics have done great things in the industry with their amazing quality products and wide range of choices. But there is always a point in every business where there is a limitation in innovation and where the business has to knock on the door of mergers and acquisitions to scale their business. It can extend its activities through mergers and acquisitions with various other brands which will add to its advantage with Kajaria Ceramics’ quality products.
• Partnership: Partnership with new upcoming business is adopted by most businesses these days to keep up with the changing scenario of business and also scale up their current business exponentially. Kajaria Ceramics has done wonders so far but it would be a great deal if they plan to partner with some new but good players with business who understand the market need and changing scenario. An association with the upcoming competitive brand with innovative ideas can help the business sustain for a longer time.
• New Innovation: Technology is ever-changing with innovative ideas generated now and then. As consumer needs change so does the market have to keep up with the change in the product as per the demand and need. Several experiments are carried out here and then, majorly in regards to eco-friendly concepts, Kajaria Ceramics can get into the division of sustainable and eco-friendly options.

Threats to Kajaria Ceramics

Threats are environmental factors that can harm a company’s development. Here are some of Kajaria Ceramics’s threats:

• Competition from Local Players: Though Kajaria Ceramics is one of the greatest competitors in its area of industry there are a lot more brands and businesses that offer a similar line of products. Every business has its unique selling propositions and to keep the lead in the business one business needs to keep updating itself regarding other competitors. Kajaria Ceramics faces stiff competition from several local players. 
• Increased Competition: Kajaria Ceramics has been sustained in the business for more than thirty years and has successfully created its place and reputation in the market among consumers and competitors. But with an increase in entrepreneurship, there are more and more new brands coming up in the market. Many new companies have entered the ceramics business on a global scale, creating a highly competitive environment.
• Limited Products: There is an increase in new business with a similar line of products in the market. Many brands from other countries are offering a different variant of a similar product with much cheaper options which has created a tuff stunt for Kajaria Ceramics. As there is a single kind of product, at a point the business can become saturated, so if the business decides to diversify its products it may help the business flourish.
• Scope for Better Designs: Kajaria Ceramics has a wide range of product options that they have developed over the years of their business course, but today they need for modernisation in the design options and different quality products has increased. Though Kajaria has always been great with their design needs, the consumers are ever-changing and so Kajaria Ceramics shall update their designs to stay relevant and fresh.

This ends our elaborative SWOT analysis of Kajaria Ceramics. Let us conclude our learning below from the SWOT analysis of Kajaria Ceramics.