Decolight Ceramics came out with an IPO in 2007 promising growth and good returns on investors.
During 2007-12, the major growth drivers of ceramics - mainly construction activity was robust. Companies such as RAK Ceramics has grown so fast that they are planning an expansion.
It brings out the difference of players in the same industry. If you refer chapter 6 and 7 of the book 'Advanced Credit Risk Analysis & Mgmt' published by John Wiley & Sons, you find more details on why different companies operating in the same industry or sector and facing similar external challenges perform differently.
No wonder, Warren Buffet spends time to find companies run with exceptional management. RAK Ceramics is one of them. Although based in UAE, the number of indians working at all levels - including finance and strategy- has contributed enormously to take RAK Ceramics to heights. With production in more than 5 countries, it is reported to be the largest manufacturer in the world of ceramic tiles (in terms of square meters)
Indian companies must closely study RAK Ceramics and its reasons for success. Then companies such as Decolight Ceramics can contribute to the wealth creation of its investors. Right now the share price is around Rs 4/-, which is reported to be much less than the IPO price. This has resulted in wealth destruction of those who invested in this company at higher price! (probably, excluding the promoters?)
During 2007-12, the major growth drivers of ceramics - mainly construction activity was robust. Companies such as RAK Ceramics has grown so fast that they are planning an expansion.
It brings out the difference of players in the same industry. If you refer chapter 6 and 7 of the book 'Advanced Credit Risk Analysis & Mgmt' published by John Wiley & Sons, you find more details on why different companies operating in the same industry or sector and facing similar external challenges perform differently.
No wonder, Warren Buffet spends time to find companies run with exceptional management. RAK Ceramics is one of them. Although based in UAE, the number of indians working at all levels - including finance and strategy- has contributed enormously to take RAK Ceramics to heights. With production in more than 5 countries, it is reported to be the largest manufacturer in the world of ceramic tiles (in terms of square meters)
Indian companies must closely study RAK Ceramics and its reasons for success. Then companies such as Decolight Ceramics can contribute to the wealth creation of its investors. Right now the share price is around Rs 4/-, which is reported to be much less than the IPO price. This has resulted in wealth destruction of those who invested in this company at higher price! (probably, excluding the promoters?)
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