La Opala and Borosil Glassworks In the past weeks, GV interacted with distributors of opalware glass companies

Opalware continues to gain market share on the back of shift in consumer buying from Bonechina, melamine and stainless steel to opalware. Further unorganized to organized shift is driving category growth. On like-to-like basis opalware is cheaper than Bonechina and porcelain by 10-20%.
La Opala has taken a price hike of Rs100/dinner set across collections. This price hike is passed to the trade as by doing this they have started to offer 1+1 free (21/27/33 piece dinner sets) to retailers as previously retailers had 47% trade margin. Competitors like Borosil and Cello have not taken price hike. La Opala has also taken marginal price hike in gift sets to the tune of 3-5% in the fast moving components.
Despite high anti-dumping duty, Chinese products are flooding the opalware market at cheaper price points. Customers are buying the Chinese products for gifting and not for own consumption.
Competitive intensity continues to remain high with all 3 Indian companies offering ~47-50% retail trade margin in dinner sets and 35% in gift sets.
Receivables and inventory days has increased in the system on the back of lackluster retail demand in last 6 months and delay in payments from the retailers.

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