Estrade Editor spoke briefly with Ashwin Reddy, Managing Director, Aparna Enterprises about the building materials industry and the future plans for Aparna Enterprises
- Tell us about Aparna Enterprises Limited (AEL)? About your products and services?
Aparna Enterprises Limited (AEL) was started in 1990 and since then has acquired the largest market share in South India. We deal in building-material products such as RMC (Ready Mix Concrete), uPVC windows and doors, uPVC profiles, tiles and sanitary ware fittings. We have constantly set benchmarks in technology, research, design and quality and have embraced new technologies to produce the most advanced and best quality outputs.
AEL manufactures and markets its products under Aparna RMC, Vitero Tiles, Aparna Venster uPVC windows and Doors, Ökotech uPVC profiles, Aparna Crusher and Aparna Unispace (Luxury Showroom for Leading European Sanitary ware brands)
- What is the geographical range of your targeted market? What is its size?
Through distributorship network Aparna Enterprise products are available across India, however, we are the leaders in the Southern market.Currently Aparna Venster (uPVC Windows and Doors) caters to the windows market in South India and is one of the top two brands in India. Aparna RMC is a market leader in Hyderabad. It is also one of the top brands in cities Vijayawada, Bengaluru and Vishakhapatnam.
Within the very first year of its launch, Vitero Tiles is the fastest growing brand in Southern and Central India. We have a strong and ever growing dealership network in several Tier 1, 2 cities. While Okotech, our flagship German Engineered uPVC profiles brand supplies uPVC profiles to top fabricators around India, Middle East and South America.
- What is your marketing strategy? For each product segment.
We market our products extensively to B2B segments, covering Builders, Architects, and Interior Designers. We reach them through our strong and talented marketing team that built strong relationships with some of the esteemed names in the construction and infrastructure industry. Our Pricing strategy depends primarily on the quality that we provide, so our products fall under premium category. Our advertising objective is not to just reach our target customers but educate them about how quality plays a crucial role in generating long-term benefits. We mainly spend our marketing budgets on Digital platforms and Social media.
To be more specific about place of selling, along with our autopsied dealer network, we have exclusive stores showcasing our Tiles and uPVC windows in some of the Tier 1 and 2 cities. Our Luxury bathroom solutions are marketed under the brand name Aparna Unispace, a flagship showroom of Aparna Group.
- Do you think that the Affordable Housing segment and other similar government promoted projects will create more business for you in the near term? Do you have a specific product tailor made for this particular market?
Government initiative like ‘Housing for All 2022’ is indeed a great move and such initiatives not only give boost to the construction business but also to the allied industries like building materials. Aparna Enterprises houses product portfolio to suit the needs of various segments like affordable, premium and luxury.
All our products, especially RMC found a strong ground in AP, Telangana and Karnataka, supplying various types of concrete to all types of builders, building both affordable and luxury housing. Aparna supplies some of its building materials to 2 BHK housing scheme projects in Telangana.
Some Products like RMC is always supplied based on the contractor’s needs. Special types of concrete are produced to meet the demands of the construction engineering. Our double charged tiles come in both premium and normal ranges. Although, the tiles are called as normal, Vitero never compromises on quality.
- What are the implications of GST on your business? What are some of the challenges that you have faced with GST?
GST has brought in very positive impact for the building materials industry with the complete set-off facility of taxes paid on inputs with the taxes on finished goods which has resulted in gradual reduction in the building material prices. Further GST rate reduction from 28% to 18% during November 2017 for finishing materials like Vitrified Tiles, Sanitary Items and Aluminum made such products more affordable and increase in volumes in recent times.
- How is changing technology impacting your industry? Innovative ways of using new technologies such as Big Data, Complex machines and AI are a challenge to your current product line or complement your business?
We have always strived to embrace new technologies for our processes. Whether it is nanotechnology for the tiles we manufacture or the 16 fully computerised Schwing Stetter RMC plants with latest concrete batching equipment, technology has always made things easier and faster. It is possible for larger production quantities in the same amount of time.
AI is too early for manufacturing sector, especially in India. But, we are looking forward to see its impact on both the productivity factor as well as the job market. We have been using data to improve and optimise efficiency in manufacturing production in a bigger way. Sales and marketing data is also being used to drive our product development unit, especially in Tiles manufacturing.
- Which product segment is the highest revenue earner for your company? Also, the smallest project in terms of revenue?
Aparna RMC is our highest revenue earner, followed by Venster uPVC, then Vitero Tiles and Unispace. RMC emerges as winner with growing needs of Indian infrastructure. Aparna RMC boasts of biggest clients from both public and private sector. Some of the biggest names include Bengaluru Airport, Hyderabad Airport, South Central Railways, Prestige, Brigade, APTIDCO, CPWD, R&B. 10% of revenue comes from retail sales of uPVC windows and doors, Tiles etc.
- What are some favourable improvements, in policy terms, that you want from the government, so as to better serve the market and deliver the best value to your customers?
Government is long been supporting Made in India campaign by removing regulation blocks and striking anti-dumping policy on Chinese goods. However, government should focus on delivering energy needs such as natural gas and electricity, of manufacturing units in a fair method.
- In the next two years, what are the two trends that will define the future of the industry?
The new trends that would define the industry are advent of new building materials such as new types of tiles that would change the floors in a bigger way. With digital technology, there would be new shapes, out-of-the box designs, colours etc.
- What is the biggest challenge faced currently by your industry?
One of the biggest challenges is rapidly changing technology that makes existing technologies obsolete. There is a general trend that new tiles or other building materials that come in vogue bring down value of older types of materials. For instance, when double charged vitrified tiles came into market, a square meter of tile sold at around 80 rupees, whereas now a square meter sells at just Rs. 35-45 a price reduction of around 50%.
- What is your vision for Aparna Enterprises Limited (AEL), in the
- Near term future, over the end of 2018
We are entering into newer segments such as aluminium and feldspar.
- Long term, over the next 4 years or so.
Our long term goal is to penetrate deeply into north India market by building our manufacturing units in key metros.
