Exxaro Tiles Ltd IPO

Some of the competitive strengths are as follows

Widespread sales and dealers network:

As on date of the RHP, Exxaro Tiles has over 2,000 registered dealers and domestically the company has PAN India presence (24 states/ union territories based on sales made during Fiscal 2021). The company has maintained long term relationships with most of their dealers. The company’s dealer relationships are led primarily by its ability to develop new and trending designs, meet stringent quality and technical specifications and provide better pricing and delivery terms than that of competitors. As a result, the company has a history of high customer retention and has been manufacturing products for some of its customers since commencement of production at Unit I. 

Wide product portfolio comprising 1000+ designs:
As on March 31, 2021, Exxaro Tiles’ product portfolio consists of 1000+ designs which are categorized into various series and available over 6 sizes. The company engages in continuous product development and introduction of new designs to keep up with the trends and meet the customer requirements. Some of the key product development highlights include: (1) 3D Effect in Double Charge Vitrified Tiles (2) Replica of Natural Stones in Double Charge Vitrified Tiles, and (3) High transparent glaze in weight method for glazed vitrified tiles. Focus on innovation and quality are the key strengths for the success of the company over the years.

Risk Factors:

Some of the risk factors are as follows

•    Volatility in the supply and pricing of raw materials and stores & spares may have an adverse effect on business. 
•    The shortage or non-availability of power, fuel and water facilities may adversely affect vitrified tiles manufacturing process and have an adverse impact on results of operations and financial condition.
•    The business is dependent on the performance of the real estate, infrastructure and other related industries where the company’s products are utilized. Any uncertainty regarding these can have an impact on the demand and business.

Conclusion:
Considering the future growth potential of the flooring solutions market, record of timely execution of projects, strong dealership network and wide product portfolio, Exxaro Tiles Limited is an attractive investment option. However, if planning to invest in the Exxaro Tiles Limited IPO one should go through the company financials and gather huge information and plan their move accordingly.