Orient Tiles eyes Rs 650-cr turnover; bullish on expansion
Orient Tiles is targeting a turnover of Rs 1,500 crore by 2015. The company has allocated an ad budget equivalent to 7 per cent of its total turnover.
Orient Tiles is embarking on an ambitious plan to expand its retail network in 2012 to increase its market share in the highly competitive organised tile industry and to figure among the top three tile companies in India.
In conversation with exchange4media, Vijay Shankar Sharma, CEO, Orient Tiles, divulged that the company was targeting a turnover of Rs 1,500 crore by 2015, carving out a market share of about 12-14 per cent in the Rs 4,500-5,000 crore organised tile market. In 2012 itself the company hopes to achieve a turnover of about Rs 650 crore.
Orient Tiles is focusing on online marketing, advertising on Facebook and real estate websites. Until two years back, the company was not into advertising. But today it has allocated an advertising budget equivalent to 7 per cent of its total turnover.
The company has also created a separate website, where it has come up with games, user content, contests, polls and advisory for architects, designers, builders and tile sellers. Sharma informed that the company had also developed branded mobile phone games to engage customers to appraise them of Orient Ceramics brands and tiles. “The whole idea is to create customer pull that helps retailers and franchisees to boost their business,” he added.
On the retail front, Orient Tiles is targeting more than 50 outlets by the end of 2012, focusing on cities like Mumbai, Pune, Kochi, Bangalore, Chennai and Gurgaon for future expansion, Sharma said. Currently, the company has about 30 franchise stores in addition to 12 Home Town outlets, where it has a tie-up to display and sell its products.
Orient Tiles’ plans got a boost last year with the acquisition of Bell Ceramic. And with that Orient Tiles has become a leading manufacturer in terms of installed capacity that stands at 29 million square meters per year. Together, they are set to cover more than 30 crore square feet of walls and floors with unique designs every year through unmatched innovative skills combined with state-of-art technologies.
With its newly established Orient International division, the company has established its imported product line from Spain, Italy and China. Through the Orient International imported range, the company has got into 75 new multi-brand retail outlets, which is expected to double by January 2012. Not just that, the company expects to clock 30 per cent growth in 2011-12 over last year’s Rs 472 crore combined turnover of Orient Tiles and Bell Ceramics. “Last year, the product range of Orient International accounted for 10 per cent of the total turnover, which is expected to go up to 15 per cent this year,” Sharma claimed.
The company’s latest initiative is Orient Tiles Boutiques (OTBs). These are exclusive company owned and managed concept stores of 2,000-3,000 sq ft. These signature boutiques display domestic and imported range of tiles and offer contemporary designs and décor solutions. Four OTBs are already operational in New Delhi, Kolkata, Chandigarh and Faridabad and more are in the offing.
All these initiatives are meant to aggressively push up sales. Seventy per cent of the company’s sales are project sales while 30 per cent is retail or refurbishing segment. “For institutional sales, we have tied up with builders, architects, designers and tile applicators. In the retail, home segment is much large and is growing much faster, and within that, luxury segment though small is growing very fast,” concluded Sharma.
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