SOMANY CERAMICS COULD HAVE MADE INCREMENTAL MODIFICATIONS IN ITS BUSINESS MODEL. IT DIDSOMETHING MORE SIGNIFICANT.
IT TRANSFORMED ITSELF INSTEAD.
Somany Ceramics' can be
The inspiration of a reinventedcondensed into just three
The words are Millennials' and Demographic dividend'. Take Millennialsinstance referring essentially to those born from the mid-1990s onwards to early 2000s.This represents the latest consuming generation having just entered the workplace. Evenas their economic influence is yet to be felt their lifestyle influence has extendedacross the world through the willing embrace of technology and cutting-edge digitalpractices. Millennials are also associated with increased narcissism compared to thepreceding generations when they were in their teens and twenties. This is not mereassumption; a digital Narcissistic Personality Inventory survey in the US foundmillennials exhibited 16% more narcissism than older adults the males scoring higher onaverage than females.
Another survey by University of Michigan and UCLA indicated an increase in theproportion of students who considered wealth ownership to be important. What was 45% amongBaby Boomers (surveyed between 1967 and 1985) increased to 70% for Gen Xers and 75% forMillennials. Interestingly the concept of developing a meaningful philosophy oflife declined the most across generations: from 73% for Boomers to 45% for Millennials.
At Somany Ceramics we believe that these numbers visibly indicate the need to acquireand display. There is another trend sweeping across India with extensive implications.Even as many
Asian countries are aging (Japan primarily) nearly half of India's 1.2 billion peopleis still under 26. By 2020 India is forecast to emerge as the youngest country in theworld with a median age of 26 (China 37). Besides 250 million people are set to joinIndia's workforce by 2030 which is the equivalent to the aggregated population of anumber of countries.
At Somany Ceramics we are convinced that the fusing of the Millennial impact at oneend and the demographic dividend at the other makes India one of the most excitingcountries in the world. Somany Ceramics could have made incremental modifications in itsbusiness model; it transformed itself instead.
The result is that the consumer of today is everywhere; Somany Ceramics proactivelywidened and deepened its distribution to the point where 75 per cent of its revenues arederived from Tier 23 and 4 cities in India today.
The consumer of today is increasingly brand-driven; Somany Ceramics invested in itsbrand personalities and visibility to drive ofitake higher than the sectoral average.
The busy consumer of today is convenience-driven; Somany Ceramics enhanced its physicaland virtual access to facilitate decision making and purchase.
The consumer of today is impatient; Somany Ceramics has strengthened its supply chainto remain consistently stocked. The consumer of today is globally exposed; Somany Ceramicslaunched world-class products and designs.
The consumer of today is choice-influenced; Somany Ceramics widened its productportfolio and variants.
I am pleased to report that even as most of our initiatives in a reinvented SomanyCeramics have been more than three to four years old the results have been dramatic.Somany Ceramics reported aggregate cash profits of C303.98 crores in the last three yearsand market capitalisation increased to C2915.70 crores as on 31st March 2017 from C636.08crores three years back on 31st March 2014. So what is the big message that I have forshareholders?
The big message is that in an ever-transforming world where it would be difficult toestimate where one will be even five years hence the only reasonable certainty andassurance that one can indeed provide is about something completely within our control.And that is our passion.
Whatever the markets whatever the pressures whatever the challenges whatever thegeographies
Somany Ceramics will bring a youthful vigour to its business and when wedo so I am confident that all the growth that we generate thereafter would be aprofitable by-product.
|Shreekant Somany |
|Chairman & Managing Director |