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Key Highlights

4x improvement

in Profit After Tax ("PAT")

Introduction

Creador made its first investment in the Indian building materials space with its investment in the listed company Somany Ceramics in February 2014. Creador identified the company through bottom up analysis via thematic research.

Market Opportunity

The home decoration market (especially the tiles industry) in India, although growing rapidly, was significantly under-penetrated with the sector dominated by local un-organized players. This was represented by the lower tiles per capita in India compared to other regional markets. Somany had been steadily gaining market share on the back of its strong brand, diversified distribution network and a wide range of premium products.

Strategy and Execution

  • Creador’s engagement with Somany Ceramics primarily focused on offering strategic advice around M&A and regional expansion. The company’s revenue, EBITDA and PAT increased by 1.5x, 3.0x and 4.0x, respectively, within Creador’s investment period (2014-17).

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