Kajaria Ceramics Limited , a leading tile manufacturer in India, has announced a significant leadership restructuring plan that requires shareholder approval through a postal ballot. The company is seeking to redefine its top management roles, aiming to streamline its leadership structure for the next five years.

Key Changes Proposed

The proposed changes, which will be effective from October 1, 2025, to September 30, 2030, include:

1. Ashok Kajaria: To be re-designated as Chairman (currently Chairman & Managing Director)
2. Chetan Kajaria: To be re-designated as Vice Chairman (currently Joint Managing Director)
3. Rishi Kajaria: To be re-designated as Managing Director (currently Joint Managing Director)

Voting Process and Timeline

Remuneration Structure

The company has proposed a remuneration structure for the executive directors, which includes:

• Each executive director may receive up to 5% of the company's net profits
• The aggregate annual remuneration for all executive directors will not exceed the maximum limit prescribed under the Companies Act, 2013

Shareholder Approval Requirement

The restructuring requires shareholder approval due to:

1. Ashok Kajaria's age exceeding 70 years, necessitating a special resolution as per the Companies Act, 2013
2. Compliance with SEBI regulations regarding remuneration of executive directors who are promoters or part of the promoter group

Background of the Proposed Leaders

1. Ashok Kajaria:

   • Founding Chairman & Managing Director
   • Over 49 years of industry experience
   • Credited with transforming the tile industry in India

2. Chetan Kajaria:

   • Joined Kajaria Ceramics in 2000
   • Instrumental in expanding the company's showroom network and production base

3. Rishi Kajaria:

   • Joined Kajaria Ceramics in 2003
   • Spearheaded the vitrified tile vertical and expansion into the bathware segment

The proposed restructuring aims to delegate major responsibilities from Ashok Kajaria to Chetan Kajaria and Rishi Kajaria, potentially setting the stage for a new era of leadership at Kajaria Ceramics. Shareholders will play a crucial role in determining the future direction of the company's management through their votes in this postal ballot.

The outcome of this vote may significantly impact the company's governance structure and strategic direction for the next five years. Shareholders are encouraged to review the detailed information provided in the postal ballot notice before casting their votes.

Kajaria Ceramics , a leading player in the Indian ceramics industry, has reported a significant improvement in its financial performance for the second quarter, despite modest revenue growth. The company's strategic initiatives and cost optimization efforts have yielded positive results, particularly in terms of profitability and operational efficiency.

Financial Highlights

Kajaria Ceramics reported a consolidated revenue of ₹1,186.00 crores in Q2, marking a marginal 1.00% year-on-year growth. However, the company achieved significant margin expansion, with EBITDA improving to 17.94%, up 447 basis points year-on-year and 122 basis points sequentially. The most notable improvement was in the company's Profit After Tax (PAT), which surged by 58.00% to ₹133.00 crores, compared to ₹84.00 crores in the previous year's corresponding quarter.

Segment Performance

While the tiles segment remained flat at ₹1,051.00 crores, the bathware segment showed promising growth of 14.00%, reaching ₹102.00 crores. The adhesives segment demonstrated substantial growth, with revenue increasing to ₹32.00 crores from ₹18.00 crores in the previous year.

Strategic Initiatives and Operational Improvements

Kajaria Ceramics is undergoing a significant organizational transformation to enhance its market position and operational efficiency. Key initiatives include:

1. Sales Unification: Streamlining the sales process across segments.
2. Cost Optimization:
   • Packaging reengineering, saving ₹30-35 crores annually
   • Workforce optimization, reducing headcount by 250
   • Improved procurement processes
3. Working Capital Management: Reduced working capital days from 58 to 56
4. Market Share Enhancement: Appointed management consultants to develop strategies
5. Architect and Influencer Engagement: Established a dedicated team

Management Outlook

The management of Kajaria Ceramics maintains a positive outlook for the second half of the fiscal year, expecting volume growth to pick up. They aim to maintain a retail-to-project mix of approximately 70:30, indicating a continued focus on the retail segment while also catering to project-based demands.

The company's strategic initiatives and cost optimization efforts have clearly paid off in Q2, as evidenced by the significant improvement in profitability despite modest revenue growth. As Kajaria Ceramics continues to implement these measures and adapt to market dynamics, investors and industry observers will be keen to see if this positive momentum can be sustained in the coming quarters.