Market Research India - Bath Fittings and Accessories Market in India 2009

Bath Fittings and Accessories Market ‐
Bath Fittings and Accessories Market India
November 2009

Executive Summary

 Bath fittings & accessories market is valued at INR 18 bn in 2008; Expected to reach INR 40 bn in
2012
Market  The market is 55% organized
M k t i
Market is mainly concentrated in urban areas
i l t t di b

Drivers: Challenges:
– Increasing urbanization – Market restricted to urban areas
Drivers & – Increase in disposable income – Low replacement demand and small
Challenges
Ch ll – Growth in real estate sector bathroom sizes
– Growth in hospitality industry
– Increasing awareness level among consumers

MManufacturers providing complete bathroom solutions
f idi l b h l i
 Water conservation technology
Trends  Tie ups with architects, builders and interior designers
 Popularity of imported fittings

 Jaquar commands a market share of 45‐50% in the organized sector
 Both domestic and the foreign manufacturers are supplying products in Indian Market
Competition
 Foreign players either have partnerships with Indian players or have their own subsidiaries
 Companies also market directly to builders and corporates

BATH FITTINGS AND ACCESSORIES MARKET – INDIA.PPT 2

•Market Overview
•Drivers & Challenges
Drivers & Challenges
•Trends
•Competition
•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 INR bn
+22%
22% 40
a lifestyle statement 40

•Bath fittings market is growing on account of: 30
18
 Rapid urbanization 20
 Rising income levels
Rising income levels 10
 Increasing awareness level 0
2008 2012e
•Companies are constantly innovating and
launching new products with new designs and Organized Vs Unorganized Split
features
•Both the basic and designer bathroom
accessories are available in the market
•Market is dominated by the organized sector Unorganized 45%
including manufacturers as well as importers 55% Organized

•Key players in the market include Jaquar,
Marc, Crabtree


Key Segments
Key Segments

Accessories
A i Bath Fittings
B th Fitti Faucets and Basin Fittings
F t d B i Fitti

•Robe Hooks
•Shower Trays
•Toilet Roll Holder •Faucets
•Rain Showers
•Rain Showers
•Towel Rods  Half turn fittings
•Overhead showers
•Towel Rings  Quarter turn fittings
•Hand Showers  Single lever fittings
•Soap dishes
•Shower Hoses  Full lever fittings
•Wall trays
•Bath cubicles
•Bath cubicles •Cabinets
C bi t
•Grab bars
•Shower Panels •Mirrors
•Mirrors
•Shower Enclosures
•Bathroom Furniture

Note : For the purpose of this report, Bathroom Fittings and Accessories market does not include tiles and ceramic
N t F th f thi t B th Fitti dA i k td t i l d til d i
plumbing fixtures such as sinks, and sanitaryware products such as lavatories or toilets


•Market Overview
•Trends
•Competition
•Key Developments


Drivers & Challenges ‐ Summary

Drivers

Increasing urbanization Challenges

Increase in disposable income Market restricted to urban areas

Low replacement demand and small
Growth in real estate sector
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
• India is witnessing massive migration of population from rural areas to urban areas
• Post Independence era, while the population of India had grown three times, urban population
grew five times
• About one‐third of urban India lives in metropolitan cities which has a million plus population
• Rapid urbanization has led to increase in standard of living, in turn creating demand for
supe o ba oo
superior bathroom fittings and accessories
gs a d accesso es

Trends of Urbanization Number Of Cities With Million Plus Population

Urban Population ( )
Ub P l ti (mn) As
A % of t t l population
f total l ti
40
600 550 50 40

500 40 30
400 23
285 30
300 20
217 20
200
10
62 10 5
100
1
0 0 0
1951 1991 2001 2021e
2021 1901 1951 1991 2001


Increase in disposable income has empowered Indians to
spend more on products like bath fittings & accessories
Increase in disposable income Impact
• With economic growth driving incomes, the purchasing power will increase significantly across
all consumer groups creating one of the largest consumer groups globally
• Majority 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
• People are opting for bigger and bigger bathrooms as a sure sign of luxurious living. increasing
the size also gives a chance of adorning it with exquisite fixtures
Per household annual Aggregate Annual Disposable
Total No. of Household (mn) income (INR ‘000) Income (INR tn)

Core target
Core target
281 consumer 90
244 3% groups
12% 24%
207 2% 1%
5% 1% 1% 23% Globals >1000
34%
23%
Strivers 500‐1000
S i 44
44%
43% Seekers 200‐500 15%
9%
33% 24 34%
Aspirers 90‐200 9% 34%
49% Deprived <90 13% 7%
30% 49% 33% 15%
18%
23% 9% 3%
2005 2015 2025 2005 2015 2025


Real estate sector is a key target segment for bathroom
fittings and accessories industry
Growth in real estate sector Impact
• India 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
• Although housing constitutes three quarters of real estate, commercial construction has also
witnessed an impressive growth
 About 80% of the demand for office space is driven by the IT/ITeS sector India has over 3 000 IT service
About 80% of the demand for office space is driven by the IT/ITeS sector, India has over 3,000 IT service
providers
– The IT industry grew by 21‐24% in 2007‐08
– The IT‐enabled services (ITeS) sector grew by 28% in 2007‐08
• Growing 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 Demand for Office Space
INR bn +30%
% mn sq-feet
sq ee
1,874
1 874 +10%
2,000 20 16
1,000 656 10 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 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
• Government has approved 300 hotel projects, half of them are in the luxury range, leading to a
growing demand for premium bath fittings and accessories
Demand Supply Gap
Rooms
400,000 260,000
200,000 110,000 150,000
0
Supply
pp y Demand
Increasing awareness among consumers
• Large scale advertisements by the organized players have helped in creating product awareness
and hence the demand for bathroom fittings
• Sizeable Indian population has traveled and has come across high end products which they now
want in their bathrooms
• Perceived as a necessity few years ago, bathrooms have now evolved into style statements
• Consumers 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‐being


Low demand in replacement market, small bathroom size &
concentration of market in urban areas impede industry
Market Restricted to Urban Areas Impact
• Majority of houses in rural India lack basic amenities such as presence of bathrooms, this has
restricted the market to urban areas
Percentage Households With Bathroom Facility Within The House
%
100
70
50
23
0
Rural Urban

Lack of replacement market and small bathroom size
• India is not a 'replacement market', majority of people tend to stick with the bathroom fittings
that they inherit at the time of property purchase
• B h fi i
Bath fittings are replaced once in every 10‐15 years
l d i 10 15
• Currently, the replacement market is estimated to be just 10% of the total market.
• In India, size of most bathrooms in urban areas ranges in between 40 sq‐feet to 100 sq‐feet
• This restricts sale of products such as shower enclosures, bathtubs, shower curtains


•Market Overview
•Trends
•Competition
•Key Developments


Trends‐ Summary

Manufacturers providing
Popularity of imported fittings
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
• Manufacturers are providing complete solutions in order to provide their customers a one‐stop‐
shopping environment by offering entire range of bathroom products Growing
importance of
importance of
• Cera has transformed itself as a complete bathroom solution provider with the inclusion of
in‐store
products like Shower Cubicle, Bath Fittings, apart from Sanitaryware
experience
 Cera Bath Studios are present in, Bangalore, Chandigarh, Kolkata, Cochin and Hyderabad, Calcutta, Lucknow &
Mumbai
 Cera plans to join hands with their dealers in setting up Bath Studios in all the cities and towns
p j g p
• 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 products and allows a consumer a virtual view 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 fittings, accessories, chandeliers, ceiling lights, fiber
optic lighting and steel basins
 Jaquar Orientation Centers also impart training programs for enhancing the skills of plumbers
Jaquar Orientation Centers also impart training programs for enhancing the skills of plumbers
• 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 looks, features and performance


Use of water conservation technology and tie ups with
builders and architects are emerging trends in this sector
Water conservation technology
• Bathroom fittings are now being designed with water conservation technology
Growing
 Mixers and showers from manufacturers such as Hansgrohe are now equipped with standard water saving
importance of
importance of
technology or are available in eco versions with reduced flow
water
 Sensor taps that come with fully automatic functioning and work under normal water pressure are gaining
popularity conservation
– The battery present in such taps lasts for a minimum of 45,000 cycles and is easily replaceable

Tie ups with architects, builders and interior designers
• 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 Tie ups aimed at
 Hansgrohe is targeting architects working on high end projects for super luxury market, hotels etc. improving sales
 Property developer Vijay Shanthi Builders Ltd (VSBL) signed a memorandum of understanding with
Parryware Roca in 2007 for using ‘Roca’ and ‘Parryware’ bathroom products in all its upcoming projects
across the country
across the country
 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


International brands entering the Indian market through
subsidiaries or partnerships with Indian firms
Popularity of Imported fittings
• Foreign brands are gaining popularity in the Indian market
India emerging
• Many International brands are present in India through their subsidiaries or have entered into
as a potential
as a potential
marketing partnerships with Indian firms
market for
 H&R Johnson (India) forged an exclusive marketing deal with the UK‐based sanitaryware leader Twyford in
foreign brands
2007 to market its premium range 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 with technological and
design capabilities from Roca
 Kohler is present through its Indian subsidiary Kohler India
 Duravit India a wholly owned subsidiary of Duravit AG, Germany produces and markets designer’s bathroom
Duravit India a wholly owned subsidiary of Duravit AG, Germany produces and markets designer s bathroom
fittings and accessories in India
 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
market


•Market Overview
•Trends
•Competition
•Key Developments


Jaquar leads in the organized market

Competition Overview Market Structure
• Market is highly fragmented with many organized
and unorganized players Organized Sector
 Share of unorganized sector is gradually declining
 People are increasingly opting for branded bath fittings
because of the guarantee in quality and after sales service
• Jaquar commands a market share of 45%‐50% in the
organized sector
organized sector Importer Manufacturer
• 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
– Grohe and Duravit have established their subsidiaries while Wholesaler
Wh l l
Keramag and Novellini have distribution tie ups with Indian
companies
• Companies are opening dedicated showrooms
complete with concept bathrooms for providing
better product demonstrations
b d d i
• Companies operate both, through direct selling in the Company
Retailers Exclusive Dealers
market and through retailers Showroom
 Companies also market directly to builders, architects and
corporates without involving retailers
corporates without involving retailers


Major Players (1/6)

Player Business Description
Aquaplus Pvt Ltd. • The company is based in Delhi
• Aquaplus products including Tapware, Bath Tubs and Bath Accessories
• The company exports its products to European countries
• Leading  hotels patronizing it include, Welcomgroup, Raddison, Marriot, Oberoi, & Taj group
Cera Sanitaryware • Cera has transformed itself as a complete bathroom solution provider with the inclusion of
Ltd products like Shower Cubicle, Bath Fittings, Tiles, apart from Sanitaryware
• Cera'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
• Apart 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 in a uniform display style in the retailer’s showrooms across the country
• 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 200 mn  at Mehsana in Gujarat for manufacturing
l h f h f f
chrome‐plated brass taps for bathrooms
• It is also focusing on exports, to the West Asia
Financials:
• It reported total income of INR 1595 2 mn and a net profit of INR 131 mn in FY 2008‐09
It reported total income of INR 1595.2 mn and a net profit of INR 131 mn in FY 2008 09

Note: This list is not exhaustive


Major Players (2/6)


Commander
• The Company is based in Mumbai
Watertech Pvt. Ltd
•CCompany manufactures bathrooms for physically challenged, bathroom accessories,
f t b th f h i ll h ll d b th i
bathroom cabinets and sanitaryware

Crabtree India Ltd • Havells India, acquired the brand rights of Crabtree from the parent company, Crabtree UK
for the Indian market in 2006
f th I di k t i 2006
• The company is based in Noida
• Crabtree India deals in exclusive range of bath fittings, modular plate switches and aura range
of dimming lights
• It li t i l d h bh d l
Its clients include shobha developers, lancor properties, aviva, dell, etc.
l ti i d ll t

Duravit India Pvt. • It is present in India through its wholly owned subsidiary Duravit India Pvt. Ltd
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



Major Players (3/6)

Ess Ess Bathroom • The company is based in Chandigarh
Products Pvt Ltd • 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 plus dealers
• Its clients include B.R. Constructions, Jain Housing, K.V.R. Builders, Reliance Energy, etc

Grohe India Pvt Ltd
Grohe India Pvt Ltd • G h I di
Grohe India, a subsidiary of Grohe AG, based in Delhi
b idi f G h AG b d i D lhi
• Its product range include special fittings suitable for hard water with high calcium deposits
also
• Company is planning to set up a manufacturing facility in India
•G h l
Grohe plans to achieve sales target of INR 4 bn by 2012
hi l f INR 4 b b 2012

H&R Johnson India • It is based in Mumbai
Ltd • It forged an exclusive marketing deal with the UK‐based Twyford in 2007 to market its
premium range of products in India
premium range of products in India
• Company offers complete bathroom solutions with products ranging from Tiles, Sanitary
ware, bathroom fittings and accessories



Major Players (4/6)

Hansgrohe India • In 2007, German based Hansgrohe AG, established its 100% subsidiary in Pune in India
Pvt. Ltd • Indian 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 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
premium products
• The company is targeting a turnover of INR 25 bn by 2013‐14
• It has a strategic alliance with Sanitec Group of Finland, to exclusively market their brand
Keramag in India
• The company is promoting use of water conservation technologies
Financials:
• The company reported gross revenue of INR 3,378 mn and an operating profit of 677.5 mn in
FY 2008‐09



Major Players (5/6)

Jaquar & Co. Ltd • Formerly called Essco, Jaquar & Company Ltd was formed in 1986
• Its product range includes faucets for basin, bidet, bath, shower, sink fittings, spouts, stop
cocks, divertors, pressmatic taps and sensor tap, bath tubs, shower panels & enclosures
k di i d b h b h l & l
• 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 reported a total turnover of INR 6.4 bn in FY 2008‐09 compared to INR 6.1 bn in FY 2007‐08
d l f b d b
Kohler India • Kohler India, a subsidiary 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 245.7 mn and a net loss of INR 105 mn in FY’2006‐07
Marc Sanitation • It manufactures faucets, towel rings and soap dish holders
Pvt. Ltd • 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 plants by 25%



Major Players (6/6)

Parryware Roca Pvt. • Parryware Roca Private Ltd is a 50:50 Joint Venture between Barcelona‐headquartered Roca
Ltd. Sanitario and EID Parry of Murugappa Group
• It
It markets its products under two brand names Parryware and Roca
k t it d t d t b d P dR
• Its product range includes mirrors, cabinets, bath tubs , shower panels, shower enclosures,
taps and fittings
• It has a portfolio of 3,500 product out of which 400 are premium products
•PParryware has established experience centers which are one stop shops for complete
h t bli h d i t hi h t h f l t
bathroom requirements in Mumbai, Gurgaon and Chennai
• It is targeting a turnover of INR 8 bn by 2011
Financials:
• It
It reported a turnover of INR 4 bn in 2008
t d t f INR 4 b i 2008
Plumber bathroom • The brand is owned by Aqua Plumbings Pvt. Ltd
Fittings • 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 fittings
• Its product range includes soap dish, towel rods, showers, etc
Regal Bathroom • It is based in Chandigarh
Fittings Pvt. Ltd. • It produces faucets and accessories
• It distributes its products all over India through a network of about 400 dealers
It distributes its products all over India through a network of about 400 dealers



•Market Overview
•Trends
•Competition
•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 bath tubs in India
b h b i I di
12‐Jul‐2009 HSIL launched a range 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 9,000‐50,000
24‐May‐2009
24 May 2009 Kohler India Corporation (KIC) is expanding capacities of its existing plant and increase its retail presence
K hl I di C ti (KIC) i di iti f it i ti l t di it t il
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
6‐May‐2009 Nitco Tiles Ltd is planning to venture into manufacturing of chrome plated bathroom fittings, the
company was in advanced stages of negotiation with two‐three companies for setting up a joint venture
company was in advanced stages of negotiation with two three companies for setting up a joint venture
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


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Market Research India - Bath Fittings and Accessories Market in India 2009

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