Supply Chain: Manufactures
OVERVIEW AND PERFORMANCE MATRIX

CERAMIC INDUSTRIES

Nature of business

Manufacturer of tiles (South Africa and Australia) and bathroomware (South Africa).

Strategic positioning	Target market
Preferred supplier of tiles and bathroomware.	Retailers and wholesalers of fashionable and affordable tiles and bathroomware in Australia, South Africa and selected export markets.

Key differentiators

Leader in design and fashion, creating desirable products. Low-cost manufacturing ensures products are affordable. Local supply ensures an understanding of customer requirements and a short, reliable supply chain. This supports our ‘always in stock’ policy, with consistent volume supply of fashionable well-priced product. Complementary products for bathroom and complete home tiling solutions.

Tile division

South Africa: Samca Wall (monoporosa wall tiles); Samca Floor and Pegasus (ceramic floor tiles); Vitro (extruded fully vitrified tiles) and Gryphon (glazed porcelain tiles). Australia: Centaurus (glazed porcelain tiles).

Key performance indicators	South Africa		Australia
	Trends 2019	Trends 2018	Trends 2019	Trends 2018
Sales
Production volumes
Average selling price
Margins
Net profit
Closing inventory

2018/19 priorities	Scorecard
Investment to extend capacity and the product range at Samca Wall factory.
Grow market share, especially of larger formats and rectified product from Gryphon.
Improve profitability of the Australian plant and complete investment to increase capacity and product range in Australia.
Reduce operating costs across the business.
Continue to improve training and development of all staff.
Explore opportunities in several potential markets to open a tile factory in Africa. This is an ongoing programme.	Underway

2018/2019 major achievements

Completed the expansion of capacity and plant upgrade at Samca Wall.

Completed the expansion of capacity and plant upgrade at Centaurus Australia.

Grew Gryphon’s share of the glazed porcelain market.

Improved profitability of the Australian operation.

Commissioned full production of the 600 x 600 mm format at the Pegasus plant.

2019/20 priorities	2019/20 prospects
Grow sales volumes through existing and new customers to optimise utilisation of production capacity.	Despite challenging trading conditions, there are still opportunities to increase market share.
Reduce manufacturing and operating costs across the business.	Sales volumes in our Zimbabwean and Zambian markets are expected to decline further over the next year. These volumes will need to be sold into the local market.
Continue to invest in training and latest technology to ensure our products are differentiated on quality and fashion.	Improved sales volumes will be driven by leadership on product fashion and improved pricing, achieved through intensified focus on cost reduction.
Implement revised strategies for export markets where competitor activity has increased and local economies are performing poorly.
Improve delivery metrics through range rationalisation and enhanced demand planning.
Commence construction of a factory in Africa.

Bathroomware division

Betta Sanitaryware (Betta) and Betta Baths.

Key performance indicators	Trends 2019	Trends 2018
Sales
Production volumes
Average selling price
Margins
Net profit
Closing inventory

2018/19 priorities	Scorecard
Improve production volumes at Betta.
Reduce waste across the operation.
Reduce operating costs across the operation.
Invest in a new warehouse to facilitate improved customer service. Construction is currently underway.
Grow operating margins at Betta Baths through improved raw material sourcing and continuous improvement of production.
Continue to develop our staff through enhanced training and development.

2018/2019 major achievements

Net sales (Rand) and net profit increased at both the Betta and Betta Baths businesses.

The clay storage, crushing plant and clay preparation areas were upgraded at Betta.

A waste water processing plant was commissioned at Betta.

2019/20 priorities	2019/20 prospects
Improve Betta’s sales volumes through enhanced demand planning and alignment of customer requirements and factory capacity.	It is expected that improved sales volumes and production yields will lead to an improved performance at Betta.
Improve production volumes and yields at Betta.	Betta Baths aims to continue to increase profitable sales. Further growth is possible, particularly in the specialised bath market, but the business remains sensitive to a weaker exchange rate.
Reduce operating costs across the operations.
Complete the new warehouse facility.
Continue to develop staff through enhanced training and development.

EZEE TILE

Nature of business

Manufacturer of cement-based adhesives, grouts, water-based paints and related products. Comprises 10 manufacturing facilities in Johannesburg, Durban, Port Elizabeth, Cape Town, Bloemfontein, Mokopane, Windhoek, Mombasa, Lusaka and Harare.

Strategic positioning	Target market
Africa’s preferred tiling solutions.	Primarily the Group’s retail networks, Italtile Retail, CTM and TopT.

Key performance indicators	Trends 2019	Trends 2018
Sales
Average selling price
Margins
Net profit
Stock turn
Closing inventory
Key differentiators	A national footprint of manufacturing plants which underpins Ezee Tile’s ‘always in stock’ policy with consistent supply of products. Strong strategic partnerships with key raw material suppliers which provide access to the latest technologies to improve quality while reducing costs.

2018/19 priorities	Scorecard
Upgrade the factory in Mombasa.
Open a production facility in Zeerust.
Commission a new factory in Lusaka and Harare.
Identify and build a new factory in Johannesburg to provide additional capacity. The land has been acquired and construction will commence in due course.
Secure ownership or partnership for supply of sand in Johannesburg.	Underway
Introduce the Homegrown paint range to open-market retailers and professional applicators.
Increase sales in the Ezee Tile Construction Chemicals division with a particular focus on waterproofing.

2019/20 priorities		2019/20 prospects
Stabilise the new factories in Lusaka and Harare and secure a significant market share in each country.		Opportunities exist to grow market share in the tile adhesive category through intensifi ed training programmes for operators and education of end-users regarding the importance of quality installation products.
Improve Ezee Tile’s share of the architectural and specifi cation markets.		The business will roll out its Paint Ambassador Programme nationwide with the goal of entrenching Ezee Tile’s paint credentials in the market and growing sales by double digits in the year ahead.
Evaluate other opportunities to expand into Africa.