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Asian Granito India Ltd.

BSE: 532888 Sector: Consumer
NSE: ASIANTILES ISIN Code: INE022I01019
BSE LIVE 15:40 | 17 Nov 490.05 9.00
(1.87%)
OPEN

487.20

HIGH

498.00

LOW

482.90

NSE 15:48 | 17 Nov 489.55 10.00
(2.09%)
OPEN

485.90

HIGH

497.15

LOW

483.50

OPEN 487.20
PREVIOUS CLOSE 481.05
VOLUME 11632
52-Week high 517.60
52-Week low 175.10
P/E 48.52
Mkt Cap.(Rs cr) 1,475
Buy Price 0.00
Buy Qty 0.00
Sell Price 490.00
Sell Qty 60.00
OPEN 487.20
CLOSE 481.05
VOLUME 11632
52-Week high 517.60
52-Week low 175.10
P/E 48.52
Mkt Cap.(Rs cr) 1,475
Buy Price 0.00
Buy Qty 0.00
Sell Price 490.00
Sell Qty 60.00

Asian Granito India Ltd. (ASIANTILES) - Chairman Speech

Company chairman speech

STRATEGIC OVER VIEW

PRESENCE AND PIPELINE

The two drivers of our reinvention story

Wish to communicate is that it took Asian

The big message that I Granito around 15 years to get to H1000 crore in turnover; webelieve that it will take the Company four years to get to H2000 crore in consolidatedgross revenues. At Asian Granito we believe that if we need to compress the growth of adecade and a half into a mere 20% of that time then the usual will not work. The Companywill need to do different things to get differentiated results. There are a number ofstrategic imperatives that we believe will virtually reinvent the Company.

In my overview I will talk of just two – presence and pipeline.

I believe that this combination – presence and pipeline – will progressivelyalter the DNA of the Company towards value-addition; superior return on capital employedand enhanced value in the hands of all those stakeholders associated with our company.

Presence

In the first decade-and-a-half Asian Granito was a company that selected tomanufacture products out of Gujarat. The result is that we were largely perceived as aGujarat company.

Pipeline

Conventionally AGL has followed an institutions-driven marketing approach. Themajority of our output was marketed to real estate builders and government institutions.During the early days of our existence this sales direction was justified as it enabledAGL to market a large quantity of products through its dedicated sales channel; besidesthe Company was still at an early stage in its investment cycle marked by a mismatchbetween prevailing cash flows and investments required to create a large retail saleschannel. The result is that 70% of the Company's revenues were consistently derived fromthe institutional channel. At AGL we believe that the time has come to move the needle.India's consumption-driven growth story is being increasingly driven by a growing off-takeby individuals building or renovating homes across the country. A growing off-take byindividuals is being driven by a number of factors: enhanced home pride and higherdisposable incomes. AGL is bringing a new urgency to this business priority. In more thana decade of its existence AGL had franchisee-owned and franchisee operated 75 outlets(FOFO); in just one year (2016-17) the Company increased the number of FOFO outlets to120 the largest increase in its distribution footprint presence in any single year.During the current financial year we intend to widen our FOFO family to 200 which isalmost equivalent to opening two new FOFOs a week. The fact that we are trebling ourdistribution footprint within the space of just two years will have extensive downstreamimplications – the ability to market faster and the ability to sample marketpreferences with speed leading to relevant production.

At AGL we believe that the increase in FOFOs across all geographies (West 35 South32 East 16 and North37) central to our distribution plan will be supported by twoflanking realities: the creation of complementary and proprietary COCO (Company ownedCompany operated) where we showcase (not sell) the complete range of our products andcreate the consumer appetite that generates sales for FOFOs; besides we increased thenumber of touch points (dealers and sub-dealers) from 4500 to 5300 making it possible totake our products down to the last mile; we intend to strengthen our presence in North andEast India correcting our regional sales skew. We are convinced that the successfulcompanies of the future will be ones with deep distribution capabilities: the ability tomarket the fastest the ability to reach pockets with a growing consumption appetite andthe ability to create a consumption appetite where none was presumed to exist. Thestrongest of companies within our sector will be those with the widest and deepestdistribution penetration; the most profitable will be one with trade partners who arewilling to pay upfront for products or within the shortest credit cycle. In view of thisAGL intends to rebalance the 35-65 skew in its customer focus (retail:institution) to50:50 over the next 3-4 years strengthening margins profits and value.

Overview

At AGL we believe that the combination of our ‘Presence' and ‘Pipeline'strategies represents the foundation of our reinvention. This virtual rewriting of our DNAwill help create a company that is larger faster growing and more profitable – avolume-value play that will enhance value for all our stakeholders.

Kamlesh Patel

Chairman and Managing Director