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. One out of every two tiles, baths and toilets purchased in South Africa is manufactured by Ceramic. |
- Retailers and wholesalers of fashionable and affordable tiles and bathroomware in South Africa, Australia and selected export markets.
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| 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.
- Ceramic's factories rank among the most energy-efficient in the world.
- Ceramic's low-carbon footprint EcoTec tile range is recognised as a leader in the manufacture of ecologically-sensitive products.
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| TILE DIVISION |
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South Africa: Samca Wall (monoporosa wall tiles); Samca+ (hardbody rectified floor tiles); Pegasus (ceramic floor tiles); Vitro (extruded fully vitrified tiles) and Gryphon (glazed porcelain tiles).
Australia: Centaurus (glazed porcelain tiles). |
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Australia |
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Trends 2023 |
Trends 2022 |
Trends 2023 |
Trends 2022 |
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| 2022/23 priorities |
Scorecard |
- Progressed towards but did not yet consistently achieve benchmark production efficiencies and yields at Samca+.
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- Poor performance on productivity improvement and unit cost competitiveness.
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- Vitro's expansion project started. Commissioning scheduled for 2024.
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- Continue to invest in training, new technology and equipment to ensure our products are differentiated by quality and fashion and our factories remain relevant to changing market dynamics.
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- Polished production capacity at Gryphon commissioned but not running at design capacity.
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- Margins declined on poor efficiency in manufacturing processes and failure to pass on price increases.
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- While sales value increased, volumes sold decreased.
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| 2022/23 major achievements |
2023/24 priorities and prospects |
- Improved performance from the Australian factory as energy pricing stabilised.
- Stabilised production at Samca+ and improved yields.
- Increased volumes of rectified planks from Gryphon and bedded down polishing technology and process.
- Commissioned an additional 2,2 MW solar power purchasing agreement at Gryphon.
- Successfully completed a new spray dryer installation at Samca Wall.
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- Increase market share.
- Improve manufacturing efficiency to reduce costs and improve margin.
- Enhance the management team.
- Improve Samca+ volumes and yields.
- Increase the polished production capacity at Gryphon and expand the range.
- Commission Vitro's third production line upgrade.
- Commission 0,6MW solar power purchasing agreement at Samca+.
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| BATHROOMWARE DIVISION |
| Betta Sanitaryware (Betta) and Betta Baths. |
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Trends 2022 |
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| 2022/23 priorities |
Scorecard |
- Improve volumes sold through improved range and distribution.
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- Systematic development and upgrade of equipment and process parameters to improve throughput yields.
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- Stabilise and improve process capability through best practice implementation and continuous improvement.
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- Erect racking and commission automation system in the new Betta warehouse.
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Underway |
- Increase capacity to manufacture freestanding baths through additional plant space and specialised paint section.
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Underway |
- Gain market share through import replacement products and increased production of fashionable in-demand products.
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- Improve margins through cost leadership, and focusing on efficiencies, yields and product mix.
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| 2022/23 major achievements |
2023/24 priorities and prospects |
- Multiple import substitution products developed and launched to market.
- Contained the manufacturing cost increase at Betta below 2% in inflationary environment.
- Grew Betta's market share in a subdued market.
- Introduced Betta-branded sanitaryware.
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- Continue to grow market share through import replacement products and increased production of fashionable, popular products.
- Improve manufacturing efficiency to contain cost increases below inflation and recover margin.
- Complete commissioning of the new Betta warehouse and significantly reduce product lead times to customers.
- Increase capacity to manufacture free-standing baths.
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Ezee Tile
Nature of business
Manufacturer of cement-based adhesives, grouts, water-based paints and related products. Comprises 10 manufacturing facilities in Johannesburg, Durban, Gqeberha, 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, as well as select open market customers, including speciality tile retailers and big-box hardware stores.
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Trends 2023 |
Trends 2022 |
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| 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 who provide access to the latest technologies to improve quality while reducing costs.
- Largest producer affords economies of scale.
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| 2022/23 priorities |
Scorecard |
- Commission new Vulcania factory to realise operational efficiencies and cost benefits.
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Underway |
- Purchase sand quarry to ensure long-term security of supply to Gauteng operations.
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Underway |
- Enhance forecasting models to ensure optimal stock levels and improve service to customers.
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- Reduce inventories and implement vendor managed supply.
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- Progress integration into the Group's TMS.
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Underway |
- Improve performance of the Zambian and Kenyan factories.
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- Grow market share in the paint segment.
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- Accelerate the upskilling of staff to align with the Group's high-performance culture.
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Ongoing |
- Continue to build market share in the specifications market.
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| 2022/23 major achievements |
2023/24 priorities and prospects |
- Multiple production lines were commissioned at the new Vulcania facility.
- Improved product procurement planning resulted in reduced stock holding and improved stock turns on raw materials.
- Robust growth was achieved in the specifications market, facilitated by an improved projects team and enhanced coordination with the Italtile Retail Commercial Projects division.
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- Realise efficiencies in the new Vulcania factory.
- Recruit critical skills into the business and continue upskilling staff.
- Entrench core elements of the Group's culture into the business.
- Complete the sand quarry purchase to secure long-term supply for the Vulcania factory.
- Complete integration of the business into the Group's TMS during the first quarter of the new financial year to improve on-time-in-full deliveries ("OTIF") and reduce costs.
- Opportunities exist to continue to build market share in the specifications market and with independent/open market customers.
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