EURO CERAMICS LIMITED
ANNUAL REPORT 2007-2008
What kind of a Company is Euro Ceramics? What distinctive difference will
we make in our space?
These are the two questions that I am most frequently asked today.
Euro Ceramics is not another tile company. It is being positioned as a core
ceramic Company. Our growth will be derived from a growing understanding of
this material and how we can apply it in various ways to make a wider range
and a better quality of products.
Euro Ceramics is not a run-of-the-mill ceramic products company. It is
being positioned as a design-led, premium tile company. What we make will
address customers who possess the desire and the capability to buy the
At the Company, we feel that a combination of these two statements
represents the essence of an effective and enduring business model.
This is why:
* It is our experience that the community of people who want to migrate to
a better quality of products and services keeps growing all the time,
recession or not. Most consumer segments are sensitive to the overall
economic, national and international environments; the premium-end is not.
* It is our experience that the quality-conscious, upper-end customer
rewards innovation and design better and quicker than any other income
segment. In our business, this translates into a more effective coverage of
costs, the availability of an attractive cash flow and a stronger
availability to reinvest in more products and higher capacities.
* In our experience, a design-led company creates the expectation of
superior quality. This creates a consumer pull, helps us reduce the
promotions budget, enthuses our franchisees and helps us widen our
distribution network faster.
I am pleased to state that in 2007-08 we walked this talk. We leveraged our
understanding of the ceramic material and extended from the manufacture of
vitrified tiles to the commercial manufacture of calcareous tiles in June
2007 and sanitaryware in April 2008.
So what will this business model achieve for our Company?
One, there is a growing international respect for Euro Ceramics for its
ability to fuse three globally established product categories into its
business with speed and effectiveness. In our understanding, this
combination of businesses is unique; companies have successfully scaled
their individual product lines to achieve economies of scale and brand, but
no Company has taken the absolutely lateral approach of widening its
product breadth over scale within our sector.
Two, we expect to drive sustainable growth in terms of topline and
bottomline for the Company over the foreseeable future, translating into
superior value for all those who own shares in our Company.
Nenshi L. Shah
Chairman & Managing Director