Manoj Ceramic Ltd Management Discussions

Manoj Ceramic Ltd: From Legacy Trading to Ceramic Innovation

Established in 1991 as Manoj & Company, Manoj Ceramic Ltd (MCPL) began its journey as a regional trader dealing in premium construction materials such as marble, granite, cement, and ceramic tiles. Over the past three decades, the Company has evolved into a forwardlooking brand that blends modern design sensibilities, digital technology, and agile operations. MCPLs transformation from a traditional trading firm into a fullservice ceramic and adhesive solution provider reflects its customerfirst mindset and strategic adaptability.

The journey culminated in its listing on the BSESME platform, reinforcing the Companys vision for transparent governance and sustainable growth.

MCPL operates as a digitally enabled hybrid enterprise with a seamless value chain that encompasses contract manufacturing, inhouse product design, experiential retail formats, and international distribution. Headquartered in Mumbai, the Company maintains operational hubs across Maharashtra, Gujarat, Karnataka, and its overseas presence via United Kingdom. With over 1,26,000 square feet of infrastructure, six flagship showrooms, and an awardwinning Studio visualization platform, MCPL is poised to elevate lifestyle oriented ceramic solutions in the midpremium category.

MCPLs mission is to democratize design through accessible, technologically superior ceramic solutions, making sophisticated interiors a reality for every Indian home and project.

Company Overview

Manoj Ceramic Ltd. (MCPL) is a leading ceramic and adhesive solution provider in India, known for its expansive product range, innovative customer engagement, and technologyled retail experiences. Headquartered in Mumbai, the Company started as a trading entity in 1991 and has transformed into a hybrid business model that combines contract manufacturing, design curation, omnichannel retail, and international logistics. With a vast distribution network across Western and Southern India, six experiential showrooms, over 800 SKUs (Stock Keeping Units), and an overseas subsidiary in the UK, MCPL has carved a distinct niche in the midpremium tile and construction material market. Its commitment to design, digitization, and sustainable business practices positions it as one of the fastestgrowing players in the SMElisted construction materials sector.

Indias economy expanded steadily in FY25 with GDP growth supported by capital expenditure, real estate revival, and strong consumption in Tier 2 and Tier 3 cities. Union Budget allocations of over ?11 lakh crore to infrastructure and housing further amplified demand for allied materials such as tiles, adhesives, and construction chemicals. Urbanization, a booming middle class, and aspirational lifestyles have driven a new wave of interiorfocused consumption.

The Indian ceramic tiles market, valued at approximately USD 10.45 billion in 2025, is expected to grow at a CAGR of 13.54% to USD 19.71 billion by 2030. Organized brands continue to gain share due to their consistent quality, innovation, and branding. Key demand drivers include rapid urban development across Tier 2/3 cities, growth in the replacement and renovation segments, ecommercedriven visual commerce, and rising demand for hygienic and lowmaintenance flooring solutions.

The Morbi region in Gujarat remains the epicentre of global ceramic tile manufacturing, offering scale, cost efficiency, and format versatility. Globally, the ceramic tiles industry stood at USD 186.7 billion in 2023 and is forecast to grow at a CAGR of 7.4% through 2030. Indias position as a key exporter remains strong due to competitive pricing, flexible manufacturing models, and logistical advantages.

Business Segments, Products and Capabilities

MCPLs business spans ceramic tiles, tile adhesives, and associated valueadded services. The Companys product portfolio is one of the most diverse among regional players, offering over 800 active SKUs that address both aesthetic appeal and functional application. In tiles, MCPL offers formats ranging from 300x300 mm to 3200x1620 mm including floor tiles, wall tiles, facade solutions, and slab categories. These are available in multiple finishes such as glossy, matte, wood, marbleized, metallic, glitter, rustic, and antiskid variants. Technologybacked offerings like glazed vitrified tiles (GVT), nanocoating, screenprinted, and fullbody porcelain tiles provide durability and design versatility.

The adhesive division is built around proprietary formulations such as Cluster Floor Thin Set, Nebula Thin Set, Galaxy Grey/White, and Universe Premium. These cater to a wide variety of substrates, including vitrified surfaces and natural stones, and are increasingly used in largeformat tile installations. These products are promoted across MCPLs retail and institutional distribution network, providing a valueadded integration with the tile segment.

A key differentiator is MCPLs proprietary AIbased MCPL Studio, a visualization platform that empowers users to digitally preview tiles in actual room environments. It enhances decisionmaking, improves product recall, and reduces customer hesitation. Studio is integrated across MCPLs website, showrooms, and digital catalogues.

MCPL operates flagship showrooms in Mumbai, Pune, Bangalore, and Thane, acting as immersive brand experiences showcasing curated tile combinations. The Companys logistics infrastructure includes warehousing, containerized export operations, and thirdparty delivery integration. Its UK subsidiary supports regional warehousing, localized sales, and compliant logistics, helping MCPL tap into demand from the UK, GCC, and select African nations.

Financial and Operational Performance

MCPL delivered stellar performance in FY25. Revenues grew 69.71% YoY to ?164.47 crore, driven by stronger retail offtake, adhesive sales, and export growth. EBITDA was ?22.85 crore with a healthy 14.00% margin. PAT surged 104.31% YoY to ?10.91 crore. These results reflect improved operational efficiency, reduced cycle times, enhanced digital conversions via MCPL Studio, and valuedriven brand positioning. Export momentum was aided by SKU alignment with European design preferences and efficient containerized dispatches from Morbi.

Strategic Initiatives and Investments

FY25 witnessed several strategic developments aimed at deepening market access, enhancing operational scalability, and enriching customer engagement. These included new showroom launches, Studio tool upgrades, ERP and CRM integration, and influencerled branding campaigns under the Finish Your Space initiative. The Company commenced backward integration feasibility for adhesives, expanded digital marketing across Tier 2 cities, and accelerated mainboard IPO preparation.

Working Capital and Financial Metrics

MCPL demonstrated capital discipline with an improved inventory turnover of 3.4x and a shorter working capital cycle of 286 days. Receivables were tightly managed at 137 days, and the debtequity ratio remained low at 0.55x. ROCE rose to 13.6%, indicating capital efficiency. Interest coverage stood at 3.13x, and liquidity levels were strong with a current ratio exceeding 3.2x.

Risk Management

MCPL follows a proactive and structured approach to risk management. This includes diversification of vendor base, hedging export transactions through natural currency matching, stringent B2B credit assessments, robust internal audits, and ERPbased operational governance. Market volatility is mitigated through flexible sourcing, digital sales enablers, and focused regional expansion.

Domestically, MCPL is positioned as a midpremium brand that merges technology with lifestyle aesthetics. Its wide product portfolio, combined with Studioenabled selection tools and design advisory, appeals to both retail and institutional customers. The adhesive segment adds a serviceled layer to the Companys offering, giving it a competitive edge over pure play tile retailers.

Globally, MCPLs export strategy focuses on designrelevant SKU packs for the UK, UAE, and Africa. The Companys overseas arm allows it to manage delivery schedules, regulatory adherence, and local customer service. This hybrid crossborder model, blending Morbi manufacturing with Western demand patterns, makes MCPL globally responsive and cost effective.

Technology Enablement and Digital Innovation

MCPL has embraced digital transformation as a core strategic lever across its product development, retail engagement, and operational workflows. The Companys foray into tech integration began with the digitization of its order and inventory management systems through a robust ERP platform, enabling realtime tracking and seamless coordination between suppliers, warehouses, and customers. Recognizing the evolving expectations of modern consumers, MCPL took a significant leap forward with the launch of its proprietary AIpowered MCPL Studio , a cuttingedge visualization tool that allows users to preview tile layouts in various room settings, lighting conditions, and formats.

Studio has been instrumental in elevating MCPLs customer experience, empowering architects, homeowners, and institutional buyers with decisionmaking clarity. With seamless integration into the Companys website and showroom systems, the platform has also driven faster conversions, reduced product returns, and strengthened customer retention. MCPLs digital infrastructure now extends across a unified CRM suite, WhatsApp Commerce, automated quotation systems, and cloudbased customer service tools, ensuring omnichannel engagement.

In FY25, MCPL upgraded Studio with VR compatibility and layout customization features, aligning with the global trend of immersive commerce. These tech capabilities were leveraged in marketing campaigns such as Finish Your Space — a Studioled interior styling campaign that saw significant traction on social media platforms like Instagram and YouTube. Internally, technology adoption has supported performance monitoring, workflow automation, and better demand forecasting.

Looking ahead, MCPL plans to deepen its digital ecosystem by deploying AI algorithms for design recommendations, voicebased showroom navigation, and smart inventory management. It also aims to build a design lab for 3D prototype development and AR

integrated catalogs to enhance its Studio platform further. This relentless focus on innovation ensures that MCPL not only meets todays design aspirations but also leads the ceramic industry into the next era of smart surfaces and personalized space creation.

SWOT Analysis

MCPLs strengths include a broad product mix, Studioled personalization, a growing adhesive business, and efficient logistics. Weaknesses include limited inhouse adhesive manufacturing and geographic concentration. Opportunities stem from Tier 2/3 demand, ESGaligned innovation, and mainboard migration. Threats include input cost inflation, forex volatility, and competitive pressure from established players and unorganized markets.

Growth Catalysts

Several external trends are acting as growth catalysts for MCPL. Rising per capita income and homeownership rates are driving demand for interior upgrades. Governmentbacked schemes like PMAY, Smart Cities Mission, and housing for all are spurring construction in urban and semiurban centres. The rise of influencer marketing and digital visual commerce is aligning with MCPLs Studiofirst strategy. Additionally, Indias positioning as a global manufacturing hub and increased container availability are facilitating export scalability for brands with strong backend partnerships like MCPL.

ESG, Human Capital and Governance

MCPL has taken definitive steps toward ESG adoption. Environmental actions include recyclable packaging and a solar feasibility study. Social initiatives focus on workplace inclusion, skillbuilding partnerships, and employee wellness. Governance standards align with SEBIs SME framework and include ERPbased monitoring, internal audits, and transparent disclosures.

Internal Controls and Assurance

The Company has built a resilient control system through integrated ERP deployment, realtime dashboards, and automated approval hierarchies. Quarterly internal audits, compliance reviews, and crossdepartmental makerchecker protocols ensure sound financial and operational governance.

Future Outlook

MCPLs future strategy is centred on intelligent scale and brand evolution. The Company aims to deepen penetration in new cities with Studiointegrated showrooms, particularly in NCR, Hyderabad, and Eastern India. Adhesive backward integration will enhance margin control, while investments in personalization and digital engagement will strengthen its connect with newage consumers. Globally, MCPL plans to widen its export presence across

Europe and Southeast Asia with tailored product bundles. Over the next three years, the Company is targeting a CAGR of 2530%, supported by operational digitization, cost optimization, ESG alignment, and expansion into new verticals. Its longterm roadmap includes mainboard listing, design lab capabilities, and omnichannel retail convergence, making MCPL a futureready brand in the evolving ceramic landscape.

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations therefor, including :

Sr. No. Particulars	FY 202425	FY 202324
1 Debtors Turnover	2.65	2.26
2 Inventory Turnover	4.36	3.96
3 Interest Coverage Ratio	3.24	2.28
4 Current Ratio	3.18	2.08
5 Debt Equity Ratio	0.54	1.82
6 Operating Profit Margin (%)	13.46%	15.85%
7 Net Profit Margin (%)	6.57%	6.34%

Cautionary Statement

Statements in this report that describe the Companys objectives, projections, estimates, and expectations may be forwardlooking statements within the meaning of applicable laws and regulations. Actual results may differ materially due to economic conditions, regulatory changes, and other factors.

For and on behalf of Manoj Ceramic Limited

Sd/

Dhruv Manoj Rakhasiya Managing Director DIN: 03256246

Sd/

Manoj Dharamshi Rakhasiya

Director

DIN: 00116309

Date: 21 st August,2025 Place: Mumbai