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Internship ReportCERASubmitted by:-Abhinav Prakash (141205)Section:BBatch: MBA-FT (2014-2016)Institute of Management, Nirma UniversityDate of Submission: 28th, April 2015

Introduction to Sanitary ware industryIndia is a large, highly populated Country of around one billion people, with an economy, which is steadily growing. As per the study, there were an estimated 125 milliondwellings in India (1995), but 200 million households. This reveals an acute housing shortage. The U.N. predicts an increase in the population of 1.6% per annum. There is a gradual migrant shift from rural to urban areas and 27% of the population now lives in urban areas as compared to20% in 1971. There is a large difference in amenities between the urban population and the rural. In 1994, 70% of the urban population had access to adequate sanitation, whereas in the rural community only 14% had access. In 1991, approximately 64% of urban households had some kind of toilet facility compared with 9% of the rural areas. There is a widening difference in income between different regions, the rich and the poor. Sanitation is a must for every individual of our society. According to the Government estimates, more than 50% of the urban population does not access to sanitation facilities. Condition of the rural areas is that only 6% ofthe population is covered by sanitation.

Sanitary ware DemandSanitary ware Industries in India for the last 6-7 years has shown very dramatic growth with major players doubling their production capacity. The Companies have also upgraded their manufacturing system by introducing Battery Casting, Beam Casting and have gone in for latest imported Fast Firing Cycle Kiln Technology. These Companies have also upgraded their quality and have introduced high value range in the market, which has been accepted and appreciated. The demand for high value sanitary ware in India is growing very fast. The Companies are trying to meet the demand as the realization per Metric Ton for high value product is very good which ultimately results in good profitability. In order to educate the customers in India to go for quality products and also for higher value sanitary ware, companies have adopted a very aggressive advertisement campaign. Companies have also strengthened their dealer network by offering showroom incentives and some of the companies have also gone for their own retail outlets in major towns. The demand for sanitary ware in India is growing @ 15% -17%every year. The sanitary ware industry in India is divided in two sectors. The organized sector consisting of 5 companies (M/s. Hindustan Sanitary Industries Limited, M/s. E.I.D. Parry, M/s. SwastikSanitary ware Limited, M/s. Madhusudan Ceramics, M/s. Neycer India Limited), manufacturing sanitary ware for the last 15-20 years and have established their Brand image. The organized sectors produce fully vitrifiedsanitary wares, using latesttechnology and best of Ceramic Raw Materials available in India. The unorganized sectors have adopted local Indian technology to manufacture the basic sanitary ware products. Since the availability ofraw material is in abundance and also very cheap in the state of Gujarat & Rajasthan, various companies have established their factory in theseareas. They are producing the basic sanitary ware in various brands.Unorganized sector's percentage ofproduction capacity and also their sales in the local domestic market are higher than that of the organized sectors' sales. Unorganized sanitary ware manufacturer comes under small sectors and hence enjoy the benefit of Nil Excise Duty and Sales Tax and hence they sell their products in the domestic market approximately 70% cheaper than the organized sector products.

Introduction to CERA Sanitary ware Limited Launched in 1980, Cera is a pioneer in the sanitary ware segment in India. The first sanitary ware company to use natural gas, Cera has been on the forefront of launching a versatile colour range and introducing the bath suite concept. It also launched innovative designs and water-saving products. The twin-flush model launched in India by Cera for the first time, reduces the water needs of households considerably. WCs designed to flush in just 4 litres of water is another notable innovation by Cera.Based in Kadi, Gujarat, Cera Sanitary ware Ltd. uses International technology, which has ensured Ceras superiority over others in quality. Established with an initial capacity of 3,600 MTPA, the plant has undergone several periodical up gradations and modernizations to expand to 25,000 MTPA.To achieve growth in the rapidly changing retail market in the country, Cera, has launched its one of a kind Cera Bath Studios in Ahmedabad, Bangalore, Chandigarh, Kolkata, Cochin and Hyderabad, Mumbai. With the opening of the Cera Bath Studios, the discerning consumers, architects and interior designers can have full view of the Ceras premium ranges of WCs, Wash Basins, Shower Panels, Shower Cubicles, Bath Tubs, Shower Temples, Whirlpools, CP fittings etc. Cera Bath Studios will complement its existing network of 600 dealers and 5000 retailers. Several Bathrooms are displayed live, so that the customers can get a feel of Ceras vast range of products.Having shown a growth rate of more than 25% since last 3 years, Cera Sanitary ware Ltd. today is the fastest growing sanitary ware company in India. For its contribution towards the industrial growth, Cera's ED 'Mr. Vidhush Somany' received "The Nirman Ratna Award" in September 2010.

History of Cera Sanitary ware Ltd:Vikram Somany, Chairman & Managing Director of Cera Sanitary ware Limited. Mr. Somany possessed entrepreneurial spirit even while he was managing Madhusudan Industries Limited in Gujarat. This company was into production of vegetable oils and vanaspati. The turning point came into the company when Mr. Somany met a government delegation in 1978.When he signed the MoU to commence the sanitary ware manufacturing unit in Kadi in North Gujarat using natural gas, the first of its kind in India. It was a kind of milestone. And it was just the beginning.

Of course, one might argue that Mr. Somany had entrepreneurship in his blood and had also inherited the understanding of this industry. His father had rich experience in sanitary ware. He along with his brothers had pioneered sanitary ware in India in the early sixties by setting up a manufacturing unit, Hindustan Sanitary ware, in collaboration with Twyfords of UK. Yes, this did give Vikram Somany some kind of background. Also, there was a market opportunity. But Cera's success does not rest on these two factors. It rests on his ability in transforming the opportunity into a business success. The opportunity was open for others as well but Cera made the most of it. Though those were the days of sellers market for sanitary ware, most companies, which went into production around the same time as Cera, did not succeed later. So what was it that Cera did different? The quality of Cera matched international norms. Cera focused on creative designs and paid equal attention to after-sales service with the differentiating factor. Moreover, Mr. Somany did not neglect the other relevant business aspects as well. Cera went on to create history with its advertising campaign in the early 1980s: Your Bathroom is a Room Too" An entrepreneur is successful because he understands and respects the three Cs: customer, change and competition. Apart from Cera, the other two major players are Parry ware and Hind ware. Both have larger production capacities than Cera currently Cera, however, is now expanding its capacities

To maintain that edge in the market, Cera keeps upgrading and increasing its product portfolio regularly. Cera also recognizes its responsibility towards environment. Like the other two major players in the organized sector, In fact, its gone a step ahead.

Well, looking at Cera's track record, Mr. Somany's vision is soon likely to be transformed into reality. He is himself quite confident about it because he has built a strong team. Success tips from Mr. Somany of Cera Identify market opportunities Create a dedicated team and give it fully operational freedom Concentrate on brand-building right from the beginning Recognize social and environmental responsibilities Follow international norms of quality Keep innovating the product offerings Provide good after-sales service.

Mission of the Company To setup and carry out research and development for the manufacture and development of sanitary ware products. Provide high quality to sanitary ware products. The Company is aiming to achieve 50-60% of market share for every product.

Vision of the CompanyTo be a total home solutions provider in the long run, providing products for every room in the home.

PRODUCTS

1Wellness

Steam Shower Rooms

Shower Rooms

Shower Cubicles

Shower Partitions

Indoor Swimming Pool

Bath Tubs with Whirlpool

Bath Tubs

Shower Panels

Pressure Pump

2Kitchen Sinks

Premium Pump

Classic Rane

3Mirrors

4Personal Care

Personal Care

Hand dryer

Perfume Sprayer with remote control

Perfume Refill

Hair Dryer

Internship:The Internship project is with CERA-India Pvt Ltd that started on 13th April 2015. My organisation mentor Aditya Agarwal (aditya@cera-india.com , 9510028515) and my organisation centre address is 2nd Floor, B Block The Acropolis Mall, S.G.Highway, Thaltej, Ahmedabad-380054, Gujarat.The project is to perform a marketing research to understand the purchasing behaviour of Customers buying the construction material that CERA produces like Sanitaryware, Wellness, faucets etc. I am performing this research in Noida city. The Questionnaire has been provided by the company that mainly focuses on the brand awareness of CERA and its contemporaries among the customers. In the first 15 days, I have visited many stores and found that in NOIDA region the consumers suffer a problem of hard water. This creates a problem in the faucets that they buy. The faucets get rusted quite easily due to hard water. So the customers have an inclination towards durable products or low cost products which are cheaper and of local brands. This allows them to change the faucets easily in a span of 2-3 years if they get rusted.

Learnings: The clarity of thought while communicating to the customer. Customer has less time so be specific on what you have to ask. Deal with the retailers patiently and communicate your project well so that they help you. Durability is the first concern for the people in the NCR region and then they look for designs. A lot depends on the suggestion given by the retailers.