CHAPTER 1: INTRODUCTION 1.1 Back Ground of  Tiles IndustryCeramic tiles as a manufacturing segment in the Srilanka  have shown as Continuous growth in production. , Especially, Commercial , Residential  and Government  sector have seen exceptional explosion in recent times. In srilanka  tiles industry  had healthy growth of 10 -12 % regularly in past years .The main product segments are Ceramic Tiles and Porcelain tiles.Tiles are non metallic, inorganic material that are made by the infusion of intense heat on material such as Clay, Aluminium, Silicon Carbide and Tungsten carbide .The increasing construction activity across the Srilanka  is a major factor that growth in this market and results in its impressive market value. Factor’s like the durability and ease of maintenance of  tiles are gaining popular as they aid in driving market growth. The demand for  tiles is expected to increase Laboratories, Hospitals, and Warehouses, Garment factories, Government offices and residential buildings as they are inexpensive and highly durable. In addition to that of stain  and germ resistant tiles is expected to incite market growth as they are better and affordable when compared to regular paints.An upswing construction activity, owing to the increasing urbanization, is boosting the demand for ceramic tiles. Wall tiles, Floor tiles, and others such as ceiling and roofing tiles are the main product available in this market .Among these, floor tiles enjoy the highest demand .In 2015, majority share of the overall consumption volume of ceramic tiles was held by the floor tiles segment .Flooring holds important in a number of applications ranging from commercial and residential constructions 1.2 Srilankan Contex Tiles industry in Srilanka has over 34 years long history in manufacturing and distribution of tiles all over the country as well as exporting  many foreign countries in the world .According to the annual reports of leading companies in the industry shows continues growth of profit in comparable with net sale .One of the main strength of the tiles industry in Srilanka is the availability of raw materials. Mainly Kaolin , Ball Clay, Feldspar , Silicon, Dolomite 1.3 Majority Share of the Overall Consumption   1.3 Common Tiles Categories In The Market 1.4 Types of Tiles (Product Segments) in Srilanka Market  1. Ceramic Wall Tiles        8 %  2. Ceramic Floor Tiles                          17 %  3. Vitrified Tiles                                    43 %  4. Porcelain Tiles                                  14 %                                  5. Glazed Tiles                                    18 %1.3 Competitors in the market Currently there are six major domain in the tile industry,1. Lanka Wall Tile  PLC (LWTPLC ), 2. Lanka Tile PLC (LTPLC) , 3. Royal Ceramic  Lanka PLC (RCLPLC ),4. Macksons tiles Lanka (Pvt) Ltd(MTLPVT) -MACKTILE5. Samson Rajarata Tiles (Pvt) Ltd.(SRTPVT)6. Others  (Importers / More than hundred of dealers / over two hundred direct suppliers as a upstream partners in the supply chain process in the  industry )1.5 Product Diversifications Of Competitors  PORCELAIN VETRIFIRDFLOOR TILES PORCELAIN GLAZEDFLOOR TILES PORCELAIN GLAZEDWALLTILES CERAMICGLAZEDFLOORTILES CERAMICGLAZEDWALLTILES CERAMICTERACOTAFLOORTILES CERAMICTERACOTAWALL TILESLWTPLC ? LTPLC ? ? RCLPLC ? ? ? ? ? ? ?SRTPVT ? OTHERS ? ? ? ?1.6 Macksons Tile Lanka (Pvt) Ltd -(MACKTILES)Macktile Lanka (Pvt) Ltd is engage in the design and manufacture a wide variety of floor tiles for both commercial and household used Under the MACKTILE Brand. Sophistication, aesthetics and durability from the cornerstone of  MACKTILE perfectly manufactured tiles. As a one of the largest companies engaged in the manufacture of tiles Srilanka, MACKTILE are powering the tile industry through modernization and design They understand the sense of consumer insight through their living and working space and extend them the wide choice of colors, textures and design manufactured in state of the art  manufacturing facilities,MACKTILE Endeavour is to provide product that delight the customers instantly. In order to achieve this superlative level of customer satisfaction, have instilled modern system and processes along the value chain, ensuring inflexible quality control, strongly monitoring by a skilled and professional team. Company driven by the purpose to transform the interiors of residential and commercial space with the impeccable trademark of MACKTILE 1.7 Factors Accountable  for Consumer Buying Behavior • Home decorations or commercial purpose • Laying Place  (Bed room, Dining room, Feature wall, wash room, Kitchen, floor ,Wall etc)• How to purchase (Retail, Contractor, Online )• Transport & Discount• After sale service• Brand• Quality• Price• Design• Reasons for tiles used to decorate the home (Beutifull /Cheap/Durability/Diversity)• Comparing with  Alternatives• Tiles Category (Earth ware tiles /Terracotta Tiles/Fully vitrified Tiles /Glazed Tiles /Stone Ware Tiles )• Size (30 cm x 30 cm / 40 cm x 40 cm etc)• Surface Appearance (Wood /Stone  etc )• How large the area• Product continuity (Re manufacturing )1.8 Tile SelectionTiles are classified under a Porcelain Enamel Institute (PEI) rating  for suitability  of fixing in a particular locations .But through body Porcelain tiles (Vitrified /Homogeneous) tiles do not have PEI  Rating due to very hard wearing Not all ceramic or Porcelain Tiles are suitable for all kind of floor areas-PEI rating CLASS 1 – Residential and Commercial wall and bare foot traffic CLASS 2 – Wall and Residential bath floor, soft soled traffic CLASS 3 – All residential floors and Light Commercial CLASS 4 – Medium Commercial, Light Industrial and Institutional, moderate soiling CLASS 5 – Extra heavy traffic, abrasive dirt, chemically more resistant1.6 Market Size (Volume ) of Key Players   & MACKTILES  (%) 1.7 Market Size (Value ) of Key Players & MACKTILES (Rs .Min )