Analysis On The Ceramic Industry In India Commerce Essay

Ceramic Industry in India is about 100 old ages old. It comprises ceramic tiles, sanitaryware and dishware points. Ceramic merchandises are manufactured both in the big and small-scale sector with broad fluctuation in type, size, quality and criterion.

India ranks 7th in the universe in term of production of ceramic tiles and produced 200

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million sq. metres of ceramic tiles, out of a planetary production of 6400 million sq. metres during 2003-04.

State-of-the-art ceramic goods are being manufactured in the state and the engineering adopted by the Indian ceramic Industry is of international criterion.

Capacity and Production

A

There are, at present, 16 units in the organized sector with an installed capacity of

21 lakh MT. It accounts for approximately 2.5 % of universe ceramic tile production Ceramic tiles industry has been turning at approximately 12 % per annum.

In India, per capita ingestion of ceramic tile is 0.15 sq. mtr. per annum compared with 2 sq. mtr. per annum in China and 5-6 sq. mtr. Per annum in European states.

These are exported to East and West Asiatic states. The exports during 2003-04 were approximately Rs. 180 crore.

A

Sanitaryware is manufactured both in the big and little sector with fluctuations in type, scope, quality and criterion. At present there are 7 units with capacity of 86,500 metric tons per annum and, there are about 200 workss with a capacity of 50,000 metric tons per annum in little graduated table sector.

The industry has a bend over of Rs. 400-500 crore. This industry has been turning at the rate of about 5 % per annum during the last 2 old ages.

A

A

Potteryware meaning dishware and tableware are produced both in the big graduated table

and small-scale sector. There are 16 units in the organized sector with a sum installed capacity of 43,000 metric tons per annum.

In the small-scale sector, there are about 1200 workss with a capacity of 3 lakh metric tons per annum. Majority of the production of ceramics tableware is of bone China and stoneware. The export of potteryware during 2003-04 was of the order of Rs. 85 crore.

The investings in the last five old ages are approx. Rs 2000 crores. The industry besides enjoys the alone differentiation of being extremely autochthonal with an copiousness of natural stuffs, proficient accomplishments, infrastructural installations despite being reasonably capital intensive. A sum of over 5,50,000 people are employed in the sector. Out of this, 50,000 people are straight employed and 5,00,000 are indirectly associated. The potency is immense sing the per capita ingestion of ceramic tiles in India. Currently it is at 0.30 square metres per individual in comparing to over 2 square metres per individual for similar states like China, Brazil and Malaysia

Current Status:

India is projected to calculate in the top 3 states fabricating ceramic tiles by 2010..

States like Malaysia, Thailand, Indonesia, Sri Lanka and Vietnam are puting up their ain workss. China has emerged as a major rival. Manufacturers from Spain and Italy have the advantage of lower transit costs while exporting to USA and Germany. In India, the per capita ingestion is every bit low as 0.30 square metres per individual compared to China ( 2 square metres per individual ) , Europe ( 5 to 6 square metres per individual ) or Brazil ( 2.5 square metres per individual ) . Rising disposable incomes of the turning in-between category and 40 million units of lodging deficit hold out a great potency.

A major alteration that took over the ceramic tiles industry, was the debut of glassy and porcelain tiles. These new entrant merchandise types are said to be the tiles of the hereafter. Internationally these tiles are already the major Sellerss. These class of merchandises account for 13 % of all organized gross revenues in this industry.

These new merchandises and the conventional wall & A ; floor tiles have together made the organized industry grow to a formidable Rs. 3000 crores industry. This coupled with a batch of enlargements by many participants make the industry look really promising in the hereafter.

The Indian Industry has developed an export market although at the lower terminal. In volume it constitutes less than half a per centum of the planetary market. ( Soon India does non calculate in the list of major exporting states ) . But this world could alter as Indian exports are lifting at the rate of 15 % per annum. The top-end of the planetary export market is soon dominated by Italy ( 40.8 % ) and Spain ( 26.4 % ) .

Export Potential of Indian Ceramicss

Introduction

The ceramic industry in India is about 100 old ages old and forms a ample industrial base at present. India is 8th largest manufacturer of ceramic merchandises.

In India, natural stuffs are available in sufficient measure and in pulverization signifier e.g. , Feldspar, Talc pulverization, Dolomite, Wallastonite, Calcite, Raw crushed dirt, Clay etc.

Since these natural stuffs are available nearby the fabrication workss of ceramic companies the transit cost goes down.

In India, Morbi, Mehsana, and Himmatnagar are major hubs for ceramic industry.

The industry holds a portion of 2.5 % in planetary production. Though India holds a minuscular portion of 0.77 % of planetary trade of ceramic merchandises in 2002.

India majorly exports to Saudi Arabia, African states, UK and UAE and imported from China and Italy

Ceramic tiles sectoraˆ¦

There are 16 units in the organized sector and 250 units in the unorganised sector fabricating ceramic wall tiles, floor tiles and glassy tiles.

India histories for about 2.5 % of the universe production.

The domestic ceramic tile industry is turning at a rate of 8 % per annum. Estimated size of the ceramic industry is approx Rs. 3300 crore out of which the portion of SSI sector is around Rs. 1200 crore.

India ‘s the per capita ceramic tile ingestion is 0.09 sq.mt.p.a. as compared to 1.2sq.mt. in China and 5 sq.mt. in European states.

Indian tiles are competitory in the international market.

Sanitary wareaˆ¦

Sanitary ware is manufactured both in big and little sectors with broad discrepancy in type, scope, quality and criterion.

This industry has been turning by around 5 % per annum during the last two old ages.

Sanitary ware points are soon being exported to East and West Asia, Africa, Europe and Canada.

Potteryaˆ¦

Potteryware such as dishware and tableware is produced both in organized and unorganised sectors.

There are 16 units in the organized sector with a sum installed capacity of 43,000 metric tons per annum.

Bone China crockeryware is being imported from Bangladesh and Sri Lanka in position of the better handiness of natural stuff at that place.

India ‘s Share of Global Production

2.5 %

Global Industry Growth Rate

11 %

Indian Growth Rate

8 %

Organized Industry Employee turnover

Rs. 16.56 billion

Share of Wall Tile

42 %

Share of Floor Tile

46 %

Share of Vitrified and Porcelain Tile

12 %

Investing in the Last 5 Old ages

Rs. 16 billion

Ceramic tiles industry statistics

Large participants of Ceramics in Indiaaˆ¦

Company

Trade name

Market portion

H & A ; R Johnson

Marbonite

21 %

Kajaria Ceramicss

Kajaria

13 %

Murudeshwar Ceramicss

Naveen diamontile

5.5 %

SPL

Greviti, Somany

Spartek

Regency Ceramicss

Bell Ceramicss

Leading makers Overseasaˆ¦

RAK Ceramicss

UAE

Kaleseramik

Turkey

Nanhai

China

Unorganized Sector

4Ps for ceramics Marketingaˆ¦

The 4Ps are like different levers that can be used in different grades to accomplish the same objectiveaˆ¦

Productaˆ¦There is a broad scope of designs and sizes to take from. Introduction of two new categoriesaˆ¦Vitrified tiled and Porcelain tiles

Priceaˆ¦The monetary value scope is really huge. Due to capacity enlargement supply is increased so monetary value is lowered down by 35 % . Furthermore monetary value war from China has besides lowered down monetary values.

Promotionaˆ¦Advertising is done in taking Construction magazines and interior design diaries. Taking portion in international exhibitions is everyday.

Placeaˆ¦Wide distribution web in Middle East and African states. Merchandises delivered within 1 hebdomads of order.

Schemes adopted by Indian companies

Somany Tiles, a Delhi-based maker of floor tiles, has entered into a strategic partnership with Kaleseramik, Turkey ‘s prima tiles maker, to market its merchandises in Middle East.

Nitco tiles has opened its sole salesrooms in Lebanon, Qatar, and some other Arabian states.

Small industries choose merchant exporters to market their merchandises. Delhi based Maharani Enterprise is the largest exporter of ceramic merchandises from the state.

CAPEXIL provides trade enquiries to their member companies.

Export Potential

Demand of Ceramic merchandises to a great extent depends on a state ‘s Construction industry

The lodging sector is expected to turn because of low involvement rates on lodging loans.

So we can aim states with heavy infrastructural development

By making consciousness in public about hygiene, we can increase demand of ceramic tiles over marble or Mosaic tiles.

Ceramicss are imperishable merchandises and requires less fusss so it is a plus point to export them.

Export composing

The major ceramic merchandises which are exported are as bellowaˆ¦

Sanitary wares

Ceramic Tiles

Family articles

Crockery points

Cosmetic ceramic merchandises

Luster tiles

Vitrified tiles

Export composing

The major ceramic merchandises which are exported are as bellowaˆ¦

Sanitary wares

Ceramic Tiles

Family articles

Crockery points

Cosmetic ceramic merchandises

Luster tiles

Vitrified tiles

Major Importers of Ceramic Merchandises

State

2002 ( US $ mil )

% portion

USA

3604.16

18.59

Germany

1706.19

8.80

France

1407.72

7.26

United kingdom

918.58

4.74

Canada

527.18

2.72

Italy

512.19

2.64

Japan

509.74

2.63

Nederlands

508.72

2.62

Belgique

443.49

2.29

Spain

427.14

2.20

Universe

19385.11

100

India ‘s Export Destinations ( US $ mil )

Export Finishs

2003

Saudi Arabia

14.84

United kingdom

13.07

UAE

12.93

Sri Lanka

6.51

Bangladesh

4.33

USA

4.15

Kuwait

2.77

Australia

2.61

Germany

2.41

Katar

2.36

Top 3 Importers of Glazed Ceramic Tiles ( 2002 )

State

Value ( ‘000 US $ )

USA

1421174

France

597143

Germany

483835

USA

Import of glassy tiles by USA ( 2002 )

Exporting states

Value ( ‘000 US $ )

Quantity ( ‘000sq metres )

Unit Price ( $ per sq.mt. )

% of import from

Italy

628953

57244

11.0

44.2

Spain

281282

35964

7.8

19.8

Mexico

160145

25374

6.3

11.3

India

2247

235

9.6

0.2

France

Import of glassy tiles by France ( 2002 )

Exporting states

Value ( ‘000 US $ )

Quantity ( Tonnes )

Unit Price ( ‘000 US $ per metric ton )

% of import from

Italy

346832

627296

0.6

58.1

Spain

143539

300516

0.5

24

Germany

24762

36000

0.7

4.1

India

25

59

0.4

Neg

Germany

Import of glassy tiles by Germany ( 2002 )

Exporting states

Value ( ‘000 US $ )

Quantity ( Tonnes )

Unit Price ( ‘000 US $ per Tonne )

% of import from

Italy

298654

554692

0.5

61.7

Spain

48184

99081

0.5

10

France

42647

104734

0.4

8.8

India

70

179

0.4

Neg

Challengesaˆ¦

Major factors that have caused borders to shrivel are dumping and anomalous usage responsibility construction in India.

Last twelvemonth about Rs. 100 crore worth of imported tiles were dumped into India.

Furthermore tiles from China are routed thru ‘ SAARC states to hedge the anti dumping responsibility

Problem is intensified by China ‘s entry in Bangkok understanding, so Chinese goods will pull merely 10 % responsibility against current 15 % .

Another major problemaˆ¦ Rising fuel costs of fabricating due to increase in monetary values of LPG and natural stuffs such as Zr and Ti.

On the other manner because of the monetary value war from China, domestic tile makers can non increase their monetary value. This straight reduces their gross revenues and profitableness farther. So they are in catch22 state of affairs.

Support of Government to ceramic sector

FDI bound in the existent estate and belongings sector, and the authorities ‘s push on the lodging sector through enterprises like the Bharat Nirman and the National Urban Renewal Mission ( under which the authorities aims to concentrate on 66 choice metropoliss ) are set to speed up the growing of ceramic industry.

The ailing ceramic industry will acquire Gas Pipeline within 4 months from Gujarat State Petronet Ltd ( GSPL ) , as portion of the proposed state-wide gas grid.

Government has established Indian Council of Ceramic Tiles and Sanitary ware ( ICCTAS ) . The end of this council is “ To advance gross revenues of merchandises of ceramic tiles and porcelain articles by India in domestic and abroad markets ” .

Its activities are to set up Trade exhibitions, Events, Seminars and representation of India ceramic makers overseas.

There are some local associations like, Gujarat Ceramic Floor Tiles Manufacturers Association ( GCFTMA ) , which represents the unorganised ceramic tiles makers of Gujarat.

By making research at Ceramic Research Institute in Calcutta, authorities has suggested to the makers that energy cost, which is about 25 % of entire cost, can saved by micro processor based control system and variable velocity drivers. By this manner companies can salvage 15 % of fabrication cost.

Decision

aˆ?The increased domestic market demand will automatically hike the industry ‘s sustainability at international degree. But to increase export in the most advanced and compensable markets, it has become indispensable to set up a loyal gross revenues web and a trade name name that is recognized and respected by industry professionals.aˆ?

Particular thanks to…

Mr. Khimjibhai Kundaria

Chairman,

Bhabha Exports

( Merchant Exporter of Ceramics )

Mr. Dharmesh Varmora

Selling director,

Varmora Vitrified Tiles

Mr.Girishbhai Pethapara

Chairman,

Gujrat Ceramic Floor Tiles Manufacturers Association

Ahmedabad

Mr. Renish Vyas

Export Manager,

Face Ceramicss

Mr. Rameshbhai Patel

Pull offing Director,

Sogo Vitrifired tiles

Thank Youaˆ¦

“ If the authorities can supply gas, electricity and H2O to this industry at lower rates, the sector can go a major money spinster of Saurashtra, ” said Prafulbhai Detroja, president,

Gujarat Ceramic and Glaze Tiles Manufacturers Association.

Thank Youaˆ¦

Potteryaˆ¦

Potteryware such as dishware and tableware is produced both in organized and unorganised sectors.

There are 16 units in the organized sector with a sum installed capacity of 43,000 metric tons per annum.

Bone China crockeryware is being imported from Bangladesh and Sri Lanka in position of the better handiness of natural stuff at that place.

Ceramic tiles industry statistics

India ‘s Share of Global Production 2.5 %

Global Industry Growth Rate 11 %

Indian Growth Rate 8 %

Organized Industry Turnover Rs. 16.56 billion

Share of Wall Tile 42 %

Share of Floor Tile 46 %

Share of Vitrified and Porcelain Tile 12 %

Investing in the Last 5 Old ages Rs. 16 billion

Large participants of Ceramics in Indiaaˆ¦

Company Brand Market portion

H & A ; R Johnson Marbonite 21 %

Kajaria Ceramics Kajaria 13 %

Murudeshwar Ceramics Naveen diamontile 5.5 %

SPL Greviti, Somany —

Sparte — —

Regency Ceramics — —

Bell Ceramics — —

Leading makers Overseasaˆ¦

RAK Ceramics UAE

Kaleseramik Turkey

Nanhai China

Top 3 Importers of Glazed Ceramic Tiles ( 2002 )

Country Value ( ‘000 US $ )

USA 1421174

France 597143

Germany 483835

Challengesaˆ¦

Major factors that have caused borders to shrivel are dumping and anomalous usage responsibility construction in India.

Last twelvemonth about Rs. 100 crore worth of imported tiles were dumped into India.

Furthermore tiles from China are routed thru ‘ SAARC states to hedge the anti dumping responsibility

Problem is intensified by China ‘s entry in Bangkok understanding, so Chinese goods will pull merely 10 % responsibility against current 15 % .

Another major problemaˆ¦ Rising fuel costs of fabricating due to increase in monetary values of LPG and natural stuffs such as Zr and Ti.

On the other manner because of the monetary value war from China, domestic tile makers can non increase their monetary value. This straight reduces their gross revenues and profitableness farther. So they are in catch22 state of affairs.

Support of Government to ceramic sector

FDI bound in the existent estate and belongings sector, and the authorities ‘s push on the lodging sector through enterprises like the Bharat Nirman and the National Urban Renewal Mission ( under which the authorities aims to concentrate on 66 choice metropoliss ) are set to speed up the growing of ceramic industry.

The ailing ceramic industry will acquire Gas Pipeline within 4 months from Gujarat State Petronet Ltd ( GSPL ) , as portion of the proposed state-wide gas grid.

Government has established Indian Council of Ceramic Tiles and Sanitary ware ( ICCTAS ) . The end of this council is “ To advance gross revenues of merchandises of ceramic tiles and porcelain articles by India in domestic and abroad markets ” .

Its activities are to set up Trade exhibitions, Events, Seminars and representation of India ceramic makers overseas.

There are some local associations like, Gujarat Ceramic Floor Tiles Manufacturers Association ( GCFTMA ) , which represents the unorganised ceramic tiles makers of Gujarat.

By making research at Ceramic Research Institute in Calcutta, authorities has suggested to the makers that energy cost, which is about 25 % of entire cost, can saved by micro processor based control system and variable velocity drivers. By this manner companies can salvage 15 % of fabrication cost.

4Ps for ceramics Marketingaˆ¦

The 4Ps are like different levers that can be used in different grades to accomplish the same objectiveaˆ¦

Productaˆ¦There is a broad scope of designs and sizes to take from. Introduction of two new categoriesaˆ¦Vitrified tiled and Porcelain tiles

Priceaˆ¦The monetary value scope is really huge. Due to capacity enlargement supply is increased so monetary value is lowered down by 35 % . Furthermore monetary value war from China has besides lowered down monetary values.

Promotionaˆ¦Advertising is done in taking Construction magazines and interior design diaries. Taking portion in international exhibitions is everyday.

Placeaˆ¦Wide distribution web in Middle East and African states. Merchandises delivered within 1 hebdomads of order.

Schemes adopted by Indian companies

Somany Tiles, a Delhi-based maker of floor tiles, has entered into a strategic partnership with Kaleseramik, Turkey ‘s prima tiles maker, to market its merchandises in Middle East.

Nitco tiles has opened its sole salesrooms in Lebanon, Qatar, and some other Arabian states.

Small industries choose merchant exporters to market their merchandises. Delhi based Maharani Enterprise is the largest exporter of ceramic merchandises from the state.

CAPEXIL provides trade enquiries to their member companies.

Export Potential

Demand of Ceramic merchandises to a great extent depends on a state ‘s Construction industry

The lodging sector is expected to turn because of low involvement rates on lodging loans.

So we can aim states with heavy infrastructural development

By making consciousness in public about hygiene, we can increase demand of ceramic tiles over marble or Mosaic tiles.

Ceramicss are imperishable merchandises and requires less fusss so it is a plus point to export them.

Export composing

The major ceramic merchandises which are exported are as bellowaˆ¦

Sanitary wares

Ceramic Tiles

Family articles

Crockery points

Cosmetic ceramic merchandises

Luster tiles

Vitrified tiles

Export composing

The major ceramic merchandises which are exported are as bellowaˆ¦

Sanitary wares

Ceramic Tiles

Family articles

Crockery points

Cosmetic ceramic merchandises

Luster tiles

Vitrified tiles

Major Importers of Ceramic Merchandises

State

2002 ( US $ mil )

% portion

USA

3604.16

18.59

Germany

1706.19

8.80

France

1407.72

7.26

United kingdom

918.58

4.74

Canada

527.18

2.72

Italy

512.19

2.64

Japan

509.74

2.63

Nederlands

508.72

2.62

Belgique

443.49

2.29

Spain

427.14

2.20

Universe

19385.11

100

India ‘s Export Destinations ( US $ mil )

Export Finishs

2003

Saudi Arabia

14.84

United kingdom

13.07

UAE

12.93

Sri Lanka

6.51

Bangladesh

4.33

USA

4.15

Kuwait

2.77

Australia

2.61

Germany

2.41

Katar

2.36

Top 3 Importers of Glazed Ceramic Tiles ( 2002 )

State

Value ( ‘000 US $ )

USA

1421174

France

597143

Germany

483835

USA

Import of glassy tiles by USA ( 2002 )

Exporting states

Value ( ‘000 US $ )

Quantity ( ‘000sq metres )

Unit Price ( $ per sq.mt. )

% of import from

Italy

628953

57244

11.0

44.2

Spain

281282

35964

7.8

19.8

Mexico

160145

25374

6.3

11.3

India

2247

235

9.6

0.2

France

Import of glassy tiles by France ( 2002 )

Exporting states

Value ( ‘000 US $ )

Quantity ( Tonnes )

Unit Price ( ‘000 US $ per metric ton )

% of import from

Italy

346832

627296

0.6

58.1

Spain

143539

300516

0.5

24

Germany

24762

36000

0.7

4.1

India

25

59

0.4

Neg

Germany

Import of glassy tiles by Germany ( 2002 )

Exporting states

Value ( ‘000 US $ )

Quantity ( Tonnes )

Unit Price ( ‘000 US $ per Tonne )

% of import from

Italy

298654

554692

0.5

61.7

Spain

48184

99081

0.5

10

France

42647

104734

0.4

8.8

India

70

179

0.4

Neg

Challengesaˆ¦

Major factors that have caused borders to shrivel are dumping and anomalous usage responsibility construction in India.

Last twelvemonth about Rs. 100 crore worth of imported tiles were dumped into India.

Furthermore tiles from China are routed thru ‘ SAARC states to hedge the anti dumping responsibility

Problem is intensified by China ‘s entry in Bangkok understanding, so Chinese goods will pull merely 10 % responsibility against current 15 % .

Another major problemaˆ¦ Rising fuel costs of fabricating due to increase in monetary values of LPG and natural stuffs such as Zr and Ti.

On the other manner because of the monetary value war from China, domestic tile makers can non increase their monetary value. This straight reduces their gross revenues and profitableness farther. So they are in catch22 state of affairs.

Support of Government to ceramic sector

FDI bound in the existent estate and belongings sector, and the authorities ‘s push on the lodging sector through enterprises like the Bharat Nirman and the National Urban Renewal Mission ( under which the authorities aims to concentrate on 66 choice metropoliss ) are set to speed up the growing of ceramic industry.

The ailing ceramic industry will acquire Gas Pipeline within 4 months from Gujarat State Petronet Ltd ( GSPL ) , as portion of the proposed state-wide gas grid.

Government has established Indian Council of Ceramic Tiles and Sanitary ware ( ICCTAS ) . The end of this council is “ To advance gross revenues of merchandises of ceramic tiles and porcelain articles by India in domestic and abroad markets ” .

Its activities are to set up Trade exhibitions, Events, Seminars and representation of India ceramic makers overseas.

There are some local associations like, Gujarat Ceramic Floor Tiles Manufacturers Association ( GCFTMA ) , which represents the unorganised ceramic tiles makers of Gujarat.

By making research at Ceramic Research Institute in Calcutta, authorities has suggested to the makers that energy cost, which is about 25 % of entire cost, can saved by micro processor based control system and variable velocity drivers. By this manner companies can salvage 15 % of fabrication cost.

Decision

aˆ?The increased domestic market demand will automatically hike the industry ‘s sustainability at international degree. But to increase export in the most advanced and compensable markets, it has become indispensable to set up a loyal gross revenues web and a trade name name that is recognized and respected by industry professionals.aˆ?

Particular thanks to…

Mr. Khimjibhai Kundaria

Chairman,

Bhabha Exports

( Merchant Exporter of Ceramics )

Mr. Dharmesh Varmora

Selling director,

Varmora Vitrified Tiles

Mr.Girishbhai Pethapara

Chairman,

Gujrat Ceramic Floor Tiles Manufacturers Association

Ahmedabad

Mr. Renish Vyas

Export Manager,

Face Ceramicss

Mr. Rameshbhai Patel

Pull offing Director,

Sogo Vitrifired tiles

Thank Youaˆ¦

“ If the authorities can supply gas, electricity and H2O to this industry at lower rates, the sector can go a major money spinster of Saurashtra, ” said Prafulbhai Detroja, president,

Gujarat Ceramic and Glaze Tiles Manufacturers Association.

Thank Youaˆ¦

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