Ladies and Gentlemen,
It gives me immense pleasure to address you at this exciting time in our Company’s history where I am proud to introduce a new management team that is highly experienced in the fields of manufacturing, turn-around management, and international finance. Over the past several months, this new team has been working vigorously to bring the Company back to profitability, and I am pleased to announce that sales have reached heights never seen before by our Company, while costs have been drastically reduced.
Restile manufactures premium homogeneous vitrified tiles, which are superior to the soluble salt type of vitrified tiles that are abundantly available in the market. The Company intends to produce the best quality ceramic products, in line with global market standards. To achieve this goal, the Company focuses on developing new technologies in production as well as in R&D. The focal point of the R&D department is to explore various avenues to enhance the quality of Restile’s products, while further reducing the cost of production.
The overall Indian market for ceramic tiles has been consistently growing approximately 15% per annum for the last few years and shows no signs of slowing down. Within the tiles sector, the wall tiles market is growing at 13% while the vitrified tile market growth is over 20% per annum. The recent market slow down has not made any impact on the production and consumption of tiles due to shift in the consumption from Tier-1 cities to Tier-2 cities in India.
With the new management, the domestic marketing department has begun aggressively ramping up to take advantage of the growth in vitrified tile markets. The Company plans to progressively expand its dealer network and place showrooms in all the major Tier-1 cities followed by selected Tier- 2 cities across the country. In recent months, the domestic marketing team has been making strides, breaking Company records for sales volumes, which has now exceeded 100,000 square meters per month.
Additionally, I am pleased to share that as of May 2010, the Company has commenced export operations, and is now focusing on introducing the Restile brand and its products into international markets. A display show room and office has been set-up in Singapore and Jakarta, Indonesia to begin the process of penetrating the global market. Additionally, key personnel with vast experience in exporting ceramic tiles have been added to the Restile team. So far, Restile has repeatedly exported to 11 countries, and plans on entering many more markets in 2011. In as few as 6 months, the Company has exported more than 100,000 square meters.
I hope you share our excitement as we enter a new phase in the Company’s life, striving to supply aesthetically pleasing vitrified tiles with uncompromised quality, while achieving profit levels never seen before by the Company.
Nalinkant A. Rathod