Cera Vs Astral
I am also doing some reading around building material segment though i am aware I have missed chance in this cycle and whatever efforts I put will only be helpful in the next cycle whenever that starts
As a long term investor whenever in doubt- I always think about transaction in terms of entire business than buying piece of the business
And therefore – the question I am trying to find out which strategy is better?
- Creating a brand and leverage that brand to enter multiple segments in building materials like astral
- Focus on the existing segments and try to go deeper by focusing on product design like cera
Cera always try to maintain their exposure to ‘projects’ business to around 35% and rest of the 65% business is focussed on consumers through their dealer network. Strategy is to build brand recall by focusing on product design and innovation. According to their claim new entrants in the sanity-ware and faucet-ware from “pipe industry” are focussing on “project” segment which mainly driven by pricing
On the other side Astral also claims that they are investing heavily in product studios especially for their faucetware and sanityware portfolio to target mind share of end customers. So far for their products the decision makers were – plumbers, contractors etc but not end customers
More I will study both companies in coming months, hopefully i can answer above question. My natural inclination is always towards companies embracing “focussed aggression” – be it ajanta, be it suprajit or vinati. Therefore my bias is towards owning Cera over Astral for next cycle. I will keep this thread updated as when I gain more insights
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