The company also plans to beef up its distribution network by expanding the number of direct retailers from 550 to 650 and sub-retailers from 5,000 to 6,000 within a year, informs Nitco Tiles Ltd managing director Vivek Talwar.
On the companys new initiatives, says Mr Talwar: The objective behind the move is to reach out to a wider target audience. In order to set up company-owned showrooms, we plan to invest at least Rs 1 crore. With the move, we hope our sales turnover to grow at the rate of an additional 10 per cent within a year. According to Mr Talwar, currently, the Rs 1,500-crore tiles market is growing at the rate of 15 per cent and is expected to grow at the same pace even next year.
The company is also planning to expand its marketing base from the Middle-East and Sri Lanka to include the US, Canada and Australia this year, informs Mr Talwar.
With the move, we hope our exports turnover to contribute around 10 per cent to our overall sales turnover. Currently, exports turnover constitute 20 per cent to our overall sales turnover. However, we do not have any plans to set up a manufacturing unit in the international market, because realisation in exports in tiles is not as good as the domestic market, he adds.
In the ceramic tiles segment, Nitco has a market share of 15 per cent and competes with players such as Johnson and Kajaria among others, informs Mr Talwar.
Recently, the company unveiled a new range of dirt-free ceramic tiles under the brand name Invizia. Prior to the move, the company launched The Super Glossy, Structured Rustic Series and Wood Strips range of tiles.
Explains Mr Talwar: With the Indian economy opening up, the industry is growing and consumers are becoming choosier. Thus the Indian tile market is hotting up with imports from all across the globe, especially China.
In order to announce its new launches, the company has released print media advertising campaigns, outdoor campaigns and direct mailers.