Beyond Cars and Jewellery: India's Overlooked Tile Premiumisation Story

When people in India buy new homes, they are spending more on the finishing touches, like the tiles on their floors.

Fancier tiles called vitrified and glazed vitrified tiles are becoming more popular than basic ceramic ones.

These fancier tiles cost more, so they help tile companies earn more money.

The trend of customers trading up to more expensive products is called premiumisation.

Three Indian tile companies are part of this story: Kajaria Ceramics, Somany Ceramics and Orient Bell.

Orient Bell's sales grew by about 43% in one year, and its profit margin more than doubled.

Somany also grew quickly and improved how efficiently it runs its factories.

Kajaria is already very profitable and is building new capacity to make more premium tiles.

Experts say each company is at a different stage, so investors should check carefully and talk to an advisor before buying these stocks.