“Before deciding to re-enter the market, we conducted a market survey to gauge our standing after the significant changes over the past decade. Surprisingly, our brand maintained a remarkable level of positive recall,” highlighted Satyendra. Even after the long gap, the quality of Regency helped it quickly regain market and the available of ready assets in the Yanam plant that were refurbished post the industrial issue comes in handy to catch base quickly.
25,000 sq. mt. per day by FY26
Regency’s existing assets include extensive raw material processing capabilities, specialised decoration lines and surplus warehouse facility. This offers both flexibility in scaling operation and logistical advantages as demand grows. Earlier the plant had a total production capacity of 40,000 sq. mt. per day. Now the Yanam plant will start operations at 7000 sq. mt. per day and gradually scale up to 25,000 sq. mt. per day by the end of FY26. The investment in the factory has totalled to about Rs 20 crore so far, with plans to invest an additional Rs 80 crore over the next three years. The plant employs about 150 and with full capacity the number will increase to about 700. Currently Regency operates through contract manufacturing arrangement with factories in Morbi, Gujarat.
A decade back, Regency recorded business of about Rs 200 crore. “Over the past 7-8 months, our team has been actively engaged with dealers and initiating sales efforts, albeit modestly, achieving around Rs 1.5 crore in sales last year. With a capacity of 25,000 sq. mt. per day, we anticipate achieving approximately sales of Rs 150 crore annually, translating to around Rs 12-15 crore per month,” said Satyendra.
Products for flooring, wall and roof
The market dynamics have evolved significantly, particularly with the introduction of digital printing in recent years. Despite these changes, Regency’s manufacturing processes have remained relatively stable, focusing on adapting to market preferences and introducing innovative products like cool roof tiles and antimicrobial tiles. Cool roof tiles utilise reflective technology to mitigate urban heat island effects, while antimicrobial tiles incorporate long-lasting antimicrobial properties integrated into the glaze during firing. These innovations aim to cater to specific market needs, enhancing product portfolio beyond traditional decorative tiles.
In terms of production capabilities, currently they manufacture tiles in sizes of 30 cm x 30 cm and 40 cm x 40 cm. As operations stabilise, they plan to expand to larger formats like 60 cm x 120 cm and 80 cm x 120 cm which forms about 75 per cent of the market demand. “This diverse range will position us uniquely in the market. We will offer a comprehensive selection from small mosaics to larger floor tiles and wall tiles, all from a single facility, which is quite a rarity in the southern region,” stated Satyendra.
Distinct retail approaches
With a strong foothold in Tamil Nadu, Andhra Pradesh, Telangana and Odisha, they have expanded to 150 dealers and continue to grow the network with the focus on the south. “For our growth, apart from tying up with building firms, we are targeting tier 2 cities as most of the home owners are individuals,” said Satyendra.
In a bid to regain the market, three distinct retail approaches have been structured. First, establishing company-owned company-operated experience centers in key cities. These centers would showcase Regency’s products and provide a hands-on experience for builders and homeowners. Second is a franchise-owned franchise-operated store which would soon open in Bengaluru. These stores will exclusively feature Regency tiles while also offering sanitary ware brands that do not have a tile range. This would provide a comprehensive shopping experience.
Lastly, Regency is to pioneer a shop-in-shop concept which would be designed as modular units. These units will be fully equipped with lighting, heating and other amenities, providing a turnkey solution for dealers to quickly set up Regency displays within their existing premises. This innovative approach streamlines installation and enhances visibility of product range in retail environments.
Regency is looking to use older equipment in innovative ways to create distinctive products. The design direction is guided by a boutique firm from Spain, led by principal designer Maria Castillo. “Maria has been instrumental in developing new collections since early last year and we are preparing to unveil these fresh designs in the coming months as our factory ramps up production,” highlighted Satyendra.
Focussing on bottom line
The tile industry has seen significant growth and changes since 2012, when Regency held about 14 per cent market share. Today, leading brands like Kajaria hold single-digit shares, indicative of a highly fragmented market. Out of the 800-plus factories located in Morbi, which constitutes the majority of the industry, approximately 80 per cent are unorganised. However, there has been a positive shift, with more than 10-15 per cent of these factories transitioning to ERP systems and adopting more transparent operational practices. This shift will benefit the entire industry as it creates a level playing field where products are valued based on their merits rather than arbitrary pricing strategies.
“Looking ahead, I foresee two significant developments in the tile industry. Firstly, consolidation among players is likely to occur as market dynamics stabilise. Secondly, there is potential for foreign brands to enter the market through partnerships or investments in existing local companies. This enables companies like ours to expand, both in terms of production capacity and technological advancements,” detailed Satyendra.
The years ahead are crucial to define the focus. “Our strength lies in offering design-centric products that cater to various home needs. This niche position is unique; there’s currently no comparable competitor in our space. We’re not aiming to become the largest company solely driven by turnover. Instead, profitability is our priority. This approach will enhance our overall worth in the market,” ended Satyendra.
