‐ November 2009
Executive Summary
Market
Bath fittings & accessories market is valued at INR 18 bn in 2008; Expected to reach INR 40 bn in 2012 The market is 55% organized ar e s ma n y concen ra e
n ur an areas
Drivers: – – – – –
Drivers & a en eng ges
Trends
Competition
Challenges:
Increasing urbanization Increase in disposable income Growth in real estate sector
– Market restricted to urban areas – Low replacement demand and small bathroom sizes
Growth in hospitality industry Increasing awareness level among consumers
anu acturers prov
ng comp ete at room room so ut ons
Water conservation technology
Tie ups with architects, builders and interior designers
Popularity of imported of imported fittings
Jaquar commands a market share of 45 of 45‐50% in the organized sector
Both domestic and the foreign manufacturers are supplying products in Indian Market
Foreign players either have partnerships with Indian players or have their own subsidiaries
Companies also market directly to builders and corporates
•Market Overview • •Trends •Key Developments
Market is dominated by the organized sector Market Overview
Market Size and Growth
•Bath fittings products in India have evolved from a low involvement functional product to a lifestyle statement
INR bn
•Bath fittings market is growing on account of:
Rapid urbanization
+
40
%
30 20
18
Increasing awareness level
•Companies are constantly innovating and launching new products with new designs and
0
2008
2012e
Organized Vs Unorganized Split
•Both the basic and designer bathroom accessories are available in the market •Market is dominated by the organized sector including manufacturers as well as importers •Key players in the market include Jaquar, Marc, Crabtree
Unorganized 45% 55% Organized
Key Segments Key Segments
ccessor es
•Robe Hooks •Toilet Roll Holder •Towel Rods •Towel Rings •Soap dishes •Wall trays •Grab bars •Mirrors •Bathroom Furniture
o e : or
a
ng s
•Shower Trays •Overhead showers •Hand Showers •Shower Hoses • •Shower Panels •Shower Enclosures
auce s an
as n
ngs
•Faucets
Half turn Half turn fittings Quarter turn fittings Single lever fittings Full lever fittings
• a ne s •Mirrors
e purpose o s repor , a room ngs an ccessor es mar e oes no nc u e es an ceram c plumbing fixtures plumbing fixtures such as sinks, and sanitaryware and sanitaryware products products such as lavatories or toilets or toilets
•Market Overview • •Trends •Key Developments
Drivers & Challenges ‐ Summary
Drivers Increasing urbanization
Challenges
Increase in disposable income
Market restricted to urban areas
Growth in real estate sector
Low replacement demand and small bathroom sizes
Growth in hospitality industry Increasing awareness among consumers
Increasing urbanization has led to a growing market of bathroom fittings and accessories Increasing urbanization
Impact
• Indi India a is witnessing massive migration of population of population from rural areas to urban areas • Pos Post Independence era, while the population of India of India had grown three times, urban population grew five times • Abou Aboutt one‐third of urban of urban India lives in metropolitan cities which has a million plus population • Rapi Rapid d urbanization has led to increase in standard of living, of living, in turn creating demand for su erio eriorr bathroom fitt fittin in s and accessories
Trends of Urbanization of Urbanization r an opu a on mn
s
600
Number Of Cities Of Cities With Million Plus Population o o a popu a on
550
500 400
285
300
40
30
40
23
30
217
20
200 100
50
40
10
62
0
0
e
10
5 1
0
Increase in disposable income has empowered Indians to spend more on products like bath fittings & accessories Increase in disposable income
Impact
• With With economic growth driving incomes, the purchasing power will increase significantly across all consumer groups creating one of the of the largest consumer groups globally • Majori Majority ty of the of the Indian families didn't consider installing stylish bathroom fittings earlier. But with the increase in disposable income, the middle and upper classes are willing to spend more on their lifestyle products such as bathroom fittings and accessories • Peop People le are opting for bigger and bigger bathrooms as a sure sign of luxurious of luxurious living. increasing the size also gives a chance of adorning of adorning it with exquisite fixtures Per household annual income (INR ‘000)
Total No. of Household of Household (mn)
281
207 1% 5% 1%
244 2% 1% 23%
3% 12% 34%
44% 43% 33% 49%
2 00 5
30%
2 01 5
18% 2 02 5
Aggregate Annual Disposable Income (INR tn)
consumer groups
90 24%
Globals >1000
23%
Strivers 500‐1000 Seekers 200‐500 Aspirers 90‐200 Deprived <90
44 15% 24 13% 49%
2005
9% 7%
34% 33%
9%
34%
9%
15% 3%
2015
2025
Real estate sector is a key target segment for bathroom fittings and accessories industry Growth in real estate sector
Impact
• Indi India a is witnessing an increased demand for residential houses driven primarily by increasing urbanization and income levels • A home with at least one bathroom has become a basic necessity in urban areas, which in turn has led to an increase in demand for bathroom fittings and accessories • Althou Although gh housing constitutes three quarters of real of real estate, commercial construction has also witnessed an impressive growth ,
,
providers
– The IT industry grew by 21‐24% in 2007‐08 – The IT‐enabled services (ITeS) sector grew by 28% in 2007‐08
• Growin Growing g office and residential spaces would require sophisticated interiors this will lead to increase in demand for high‐end bathroom fittings and accessories Real Estate Growth INR bn
+30%
2,000 1,000
,
Demand for Office Space mn s -feet
+10%
20 656
10
16
4
0
0
2008
2012
1988
2004
Growth in hospitality sector and increasing awareness is driving the bath fittings and accessories market Growth in hospitality industry
Impact
•The hotel industry is facing a deficit of 150,000 of 150,000 rooms
Demand is expected to exceed supply by at least 100% over the next two years
• 40 brands are expected to set‐up budget hotels in the next five to seven years in India • Govern Governmen mentt has approved 300 hotel projects, half of half of them them are in the luxury range, leading to a growing demand for premium bath fittings and accessories Demand Supply Gap Rooms
400,000 200,000
260,000 110,000
150,000
0
Supply
Increasing awareness among consumers
Demand
• Larg Large e scale advertisements by the organized players have helped in creating product awareness and hence the demand for bathroom fittings • Sizeab Sizeable le Indian population has traveled and has come across high end products which they now want in their bathrooms • Perceiv Perceived ed as a necessity few years ago, bathrooms have now evolved into style statements • Consumer Consumerss are focusing on bathroom as a living space, they are spending more time in bathrooms, not merely for hygiene reasons, but to relax, recreate and get a sense of well of well‐being
Low demand in replacement market, small bathroom size & concentration of market of market in urban areas impede industry Market Restricted to Urban Areas
Impact
• Majori Majority ty of houses of houses in rural India lack basic amenities such as presence of bathrooms, of bathrooms, this has restricted the market to urban areas Percentage Households With Bathroom Facility Within The House % 100 50
70 23
0
Rural
Urban
Lack of replacement of replacement market and small bathroom size • Indi India a is not a 'replacement market', majority of people of people tend to stick with the bathroom fittings that they inherit at the time of property of property purchase •Bat
ittings are rep ace once in every 10‐15 years
• Currently Currently,, the replacement market is estimated to be just be just 10% of the of the total market. • In India, size of most of most bathrooms in urban areas ranges in between 40 sq‐feet to 100 sq‐feet • This This restricts sale of products of products such as shower enclosures, bathtubs, shower curtains
•Market Overview • •Trends •Key Developments
Trends‐ Summary
Popularity of of imported imported fittings
Manufacturers providing complete bathroom solutions
Trends
Tie ups with architects, builders and interior designers
Water conservation technology
‘Complete bathroom solutions’ is an emerging concept in bathroom fittings and accessories market Manufacturers providing complete bathroom solutions • Manufactu Manufacturers rers are providing complete solutions in order to provide their customers a one‐stop‐ shopping environment by offering entire range of bathroom of bathroom products • Cera has transformed itself as itself as a complete bathroom solution provider with the inclusion of products like Shower Cubicle, Bath Fittings, apart from Sanitaryware
Cera Bath Studios are present in, Bangalore, Chandigarh, Kolkata, Cochin and Hyderabad, Calcutta, Lucknow & Mumbai Cera lans to oin hands with their dealers in settin u Bath Studios in all the cities and towns
• Parryware has established ‘experience centers’ which are one stop shops for complete bathroom products
Experience centers are located in all the major metros These stores display the entire range of Parryware of Parryware products and allows a consumer a virtual view of bathroom of bathroom after renovation on the computers available at the centers
• Jaquar has orientation centers in 22 cities for displaying its entire product range
Jaquar orientation center display complete range of bath of bath fittings, accessories, chandeliers, ceiling lights, fiber optic lighting and steel basins
• HSIL has started Hindware Lacasa Stores in Cochin and Mumbai
These stores stock sanitaryware, faucets and wellness products
It also offers first hand experience of product of product looks, features and performance
Growing in‐store experience
Use of water of water conservation technology and tie ups with builders and architects are emerging trends in this sector Water conservation technology • Bathro Bathroom om fittings are now being designed with water conservation technology
Mixers and showers from manufacturers such as Hansgrohe are now equipped with standard water saving technology or are available in eco versions with reduced flow Sensor taps that come with fully automatic functioning and work under normal water pressure are gaining popularity
Growing water conservation
of 45,000 cycles and is easily replaceable – The battery present in such taps lasts for a minimum of 45,000
Tie ups with architects, builders and interior designers • Bath Bath fittings manufacturers are forging alliances with builders, so that installations can be done during the construction phase itself
Jaquar has a tie up with K Raheja group
Hansgrohe is targeting architects working on high end projects for super luxury market, hotels etc.
Property developer Vijay Shanthi Builders Ltd (VSBL) signed a memorandum of understanding of understanding with Parryware Roca in 2007 for using ‘Roca’ and ‘Parryware’ bathroom products in all its upcoming projects Parryware Roca has signed a deal worth INR 150 bn with the Prestige Group in 2007
– Over 15,000 bathrooms in the Prestige Group projects would have Parryware products
Tie ups aimed at improving sales
International brands entering the Indian market through subsidiaries or partnerships with Indian firms Popularity of Imported of Imported fittings • Fore Foreig ign n brands are gaining popularity in the Indian market • Ma Man ny International brands are present in India through their subsidiaries or have entered into marketing partnerships with Indian firms H&R Johnson (India) forged an exclusive marketing deal with the UK‐based sanitaryware leader Twyford in
2007 to market its premium range of products of products in India
German brand Villeroy & Boch launched its Indian Subsidiary Villeroy & Boch Sales India Pvt. Ltd in 2009, it is planning to open 15‐18 Showrooms in 2009 In April 2006, Spain based Roca forged a joint venture with the EID Parry and created Parryware Roca Pvt Ltd , joint venture combining manufacturing, distribution & service strength of Parryware of Parryware with technological and design capabilities from Roca Kohler is present through its Indian subsidiary Kohler India Duravi Duravitt India India a wholl wholl owned owned subsid subsidiar iar of Duravit Duravit AG German German fittings and accessories in India
roduce roducess and market marketss desi desi ner’s ner’s bathro bathroom om
In 2006, Germany‐based Hansgrohe AG forged a tie‐up with Jaquar to showcase and demonstrate its top‐end products in Jaquar's `Orientation Centres‘ Italian premium brand, Novellini forged a partnership with Cera in 2009 for marketing its products in the Indian
India emerging market for foreign brands
•Market Overview • •Trends •Key Developments
Jaquar leads in the organized market Competition Overview
Market Structure
• Ma Mark rket et is highly fragmented with many organized and unorganized players
Share of unorganized of unorganized sector is gradually declining
People are increasingly opting for branded bath fittings
Organized Sector
because of the of the guarantee in quality and after sales service
• Jaqu Jaquar ar commands a market share of 45% of 45%‐50% in the • Both Both domestic and the foreign manufacturers are supplying products in Indian Market
Foreign players either have distribution partnerships with Indian players or have established their own subsidiaries
o esa er
– Grohe and Duravit have established their subsidiaries while Keramag and Novellini have distribution tie ups with Indian companies
• Compan Companies ies are opening dedicated showrooms complete with concept bathrooms for providing etter pro pro uct uct emonstrat ons • Compan Companies ies operate both, through direct selling in the market and through retailers
Companies also market directly to builders, architects and cor orates without without involvin involvin retailers retailers
Retailers
Exclusive Dealers
Company Showroom
Major Players (1/6) Player
Aquaplus Pvt Ltd.
Business Description
•The company is based in Delhi • Aquapl Aquaplus us products including Tapware, Bath Tubs and Bath Accessories •The company exports its products to European countries • Leadin Leading g hotels patronizing it include, Welcomgroup, Raddison, Marriot, Oberoi, & Taj group
Cera Sanitaryware Ltd
• Cer Cera has transformed itself as itself as a complete bathroom solution provider with the inclusion of products like Shower Cubicle, Bath Fittings, Tiles, apart from Sanitaryware • Cera Cera's 's products range include economical range as well as premium high end products like shower temples, shower cubicles etc • It has over 500 dealers and 5000 retailers • Apar Apartt from its dealers, Cera has its own display centers Cera Bath Studios in major cities • In line with its bath studios, it is planning to start 100 Cera Style Corners, for displaying its range of products of products in a uniform display style in the retailer’s showrooms across the country • Cer Cera forged a marketing partnership with Italian premium brand Novellini, in 2009 • It plans to import Italian and Chinese products for marketing in India and establish a new plant near with an investment of INR of INR 200 mn at Mehsana in Gujarat for manufacturing chrome‐plated brass taps for bathrooms • It is also focusing on exports, to the West Asia Financials: •
Note: This list is not exhaustive
.
‐
Major Players (2/6) Player
Commander Watertech Pvt. Ltd
Crabtree India Ltd
Business Description
•The Company is based in Mumbai • ompa ompan ny manu ac ures a rooms or p ys ca y c a enge , a room accessor es, bathroom cabinets and sanitaryware • Ha Havel vells ls India, acquired the brand rights of Crabtree of Crabtree from the parent company, Crabtree UK or e n an mar e n •The company is based in Noida • Crabt Crabtree ree India deals in exclusive range of bath of bath fittings, modular plate switches and aura range of dimming of dimming lights • s c en s nc u e s o
Duravit India Pvt. Ltd
a eve opers, ancor prope properr es, av va, e , e c.
• It is present in India through its wholly owned subsidiary Duravit India Pvt. Ltd • It has operations in over 80 countries across the world •Its products include sanitary ware, bathtubs and whirl tubs, bathroom furniture and bathroom accessories
Note: This list is not exhaustive
Major Players (3/6) Player
Ess Ess Bathroom Products Pvt Ltd
Business Description
•The company is based in Chandigarh •Its production facility is located at Barotiwala in Himachal Pradesh •Its products include faucets, taps and showers • It distributes its products through its nationwide network of 1,000 of 1,000 plus dealers •Its clients include B.R. Constructions, Jain Housing, K.V.R. Builders, Reliance Energy, etc • ro e n a, a su s
ary o
ro e
, ase
n e
•Its product range include special fittings suitable for hard water with high calcium deposits also • Compan Company y is planning to set up a manufacturing facility in India • ro e p ans to ac eve sa es target o
H&R Johnson India Ltd
n y
• It is based in Mumbai • It forged an exclusive marketing deal with the UK‐based Twyford in 2007 to market its • Compan Company y offers complete bathroom solutions with products ranging from Tiles, Sanitary ware, bathroom fittings and accessories
Note: This list is not exhaustive
Major Players (4/6) Player
Hansgrohe India Pvt. Ltd
Business Description
• In 2007, German based Hansgrohe AG, established its 100% subsidiary in Pune in India • Indi Indian an subsidiary provides product training and promotion to the relevant target customers •Its other brands include Axor and Pharo • In 2006, it had forged a tie‐up with Jaquar to showcase and demonstrate its top‐end products in Jaquar's `Orientation Centres‘ •Its products include showers, shower systems, faucets, valves, bathroom & kitchen fixtures
HSIL
•The company is part of Somany of Somany group •Its product range includes faucets, steam rooms, bath tubs, shower enclosures & partitions and shower panels • It is planning to open Hindware Boutiques across metro cities and enhance the range of its of its premium products •The company is targeting a turnover of INR of INR 25 bn by 2013‐14 • It has a strategic alliance with Sanitec Group of Finland, of Finland, to exclusively market their brand Keramag in India •The company is promoting use of water of water conservation technologies Financials:
•The company reported gross revenue of INR of INR 3,378 mn and an operating profit of 677.5 of 677.5 mn in FY 2008‐09
Note: This list is not exhaustive
Major Players (5/6) Player
Jaquar & Co. Ltd
Business Description
• Forme Formerly rly called Essco, Jaquar & Company Ltd was formed in 1986 •Its product range includes faucets for basin, bidet, bath, shower, sink fittings, spouts, stop coc s, ivertors, pressmatic taps an sensor tap, at tu s, s ower wer pane s enc osures • It launched orientation centers in 22 cities for displaying its entire product range and plans to set up a customization wing for customizing products as per requirements Financials:
• It reporte a tota turnover o INR 6.4 n in FY 2008‐09 compare to INR 6.1 n in FY 2007‐08
Kohler India
• Kohle Kohlerr India, a subsidiary of US of US based Kohler, product range includes toilets, lavatories, faucets, baths, whirlpools and showers • It is planning to invest INR 1 bn for setting‐up two more manufacturing units in Gujarat by 2011‐12 and planning to ship its Indian‐made products to the US and Europe • It is planning to double its channel partners to 89 Financials:
• It reported a total income of INR of INR 245.7 mn and a net loss of INR of INR 105 mn in FY’2006‐07
Marc Sanitation Pvt. Ltd
• It manufactures faucets, towel rings and soap dish holders • It is based in Delhi with factories in Delhi, Baddi (Himachal Pradesh), and Bhiwadi (Rajasthan) • It plans to establish new factories in Haridwar, Hyderabad and Pune and increase existing capacity of its of its plants by 25%
Note: This list is not exhaustive
Major Players (6/6) Player
Parryware Roca Pvt. Ltd.
Business Description
• Parrywar Parryware e Roca Private Ltd is a 50:50 Joint Venture between Barcelona‐headquartered Roca Sanitario and EID Parry of Murugappa of Murugappa Group •
mar e s s pro uc s un er wo ran names arryware an
oca
•Its product range includes mirrors, cabinets, bath tubs , shower panels, shower enclosures, taps and fittings • It has a portfolio of 3,500 of 3,500 product out of which of which 400 are premium products • arry arrywa ware re as es a s e exper ence cen ers w c are one s op s ops or comp e e bathroom requirements in Mumbai, Gurgaon and Chennai • It is targeting a turnover of INR of INR 8 bn by 2011 Financials:
•
Plumber bathroom Fittings
repor e a urnover o
n n
•The brand is owned by Aqua Plumbings Pvt. Ltd • It also markets its products in Spain, Sri Lanka, South Africa, Kenya, Tanzania & UAE • It has products both in economy and premium range of bath of bath fittings •Its product range includes soap dish, towel rods, showers, etc
Regal Bathroom Fittings Pvt. Ltd.
• It is based in Chandigarh • It produces faucets and accessories •
Note: This list is not exhaustive
•Market Overview • •Trends •Key Developments
Key Developments Date
Development
31‐ Jul ‐2009
Cera Sanitaryware Ltd forged a partnership with Novellini, an Italian premium wellness brand, for introducing its products which include shower enclosures, equipped panels, steam cubicles and hydro‐ massage at tu s n n a
12‐ Jul ‐2009
HSIL launched a range of eco of eco‐friendly bathroom products at Bangalore. The products can save potable water while in use. The range includes 15 products including sanitaryware and bathroom fittings in the price range of INR of INR 9,000‐50,000
‐
‐
6‐May ‐2009
o er n a orpo orpora ra on s expan ng capac es o s ex s ng p an an ncrease s re a presence in India. The company is investing INR 1 bn for setting up two additional units in Gujarat. KIC, it is also planning to add another 100 stores in India Nitco Tiles Ltd is planning to venture into manufacturing of chrome of chrome plated bathroom fittings, the
‐ 31‐Dec ‐2008
Moen, a global firm in the kitchen and sanitary ware industry, has entered the Indian market as Moen India Pvt. Ltd. It launched its first exclusive faucets boutique in Delhi, is planning to set up an assembling unit at Baddi in Himachal Pradesh
Thank you for your time For an updated report or any customized research requirements, please contact: Gaurav Kumar E‐Mail:
[email protected] [email protected];;
[email protected] Phone: +91 33 4064 6214; +91 983 030 9715
Netscribes’ Services: Investment Research Enterprise Market Research Patent Research yn ca e ar e esearc
Market Monitoring & Competitive Intelligence Sales & Prospect Intelligence s en ng e a on or ng Brand Surveillance
Social Media Marketing Marcom Support Services Content Management Services oo ac ag ng erv ces
For further details, visit us at: www.netscribes.com About Netscribes About Netscribes Netscribes supports the organic and and inorganic inorganic growth objectives of of global global corporations corporations through a combination of of Enterprise Enterprise Market, Investment & Investment & Patent Patent Research, Research, Market Market & & Sales Intelligence, Social Social Media Media Monitoring & Management Management and and Custom Custom Publishing solution.
. however, Netscribes, Inc. or or “Netscribes” “Netscribes” is is not not responsible responsible for for any any loss loss or or damage damage arising arising from from use of of this this document. This document is the sole property of property of Netscribes Netscribes and prior prior permission permission is required for guidelines for guidelines on reproduction.