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The Morbi ceramic industry has recently received a boost up from rising demand for ceramic tiles products in the rural Gujarat markets.
A few months back, India’s largest ceramic industry found it difficult to cope with declining orders and lower margins.
Several small and medium sized tiles units in the ceramic sector were struggling to stay floating. However, growing demand for ceramic products in the Tier II and Tier III cities as well as rural areas have provided a twinkle of hope to small units in the sector.
Last year’s scenario
During the last financial year, SMEs in the Morbi ceramic industry witnessed lower sales growth due to declining demand in both domestic and international markets. The growth rate of the industry had gone down from 30%-40% to 10%
Added to the falling orders, the unorganized ceramic and tiles sector had to grapple with rising costs and stiff competition from the cheaper Chinese products, which were flooding the domestic market.
“Last year, while several small tiles manufacturing units had to cut down production from four lines to two, many units in Morbi had to shut shop due to increasing production costs and falling revenues,” reveals D Patel, Spokesperson, Laxmi Tiles, a small-sized tile manufacturing company in Gujarat.
Moreover, small players in the Morbi ceramic industry were severely affected by higher taxes, rising costs of fuel and transportation, lack of raw materials and a slowdown in demand from the construction sector. Due to such problems, tile manufacturing units were compelled to operate at less than half the capacity.
Affirmative Signs of recovery
However, things have started improving in this financial year. “The ceramic sector is now on its way to recovery, as we can see orders flowing in. Though the ceramic industry is yet to see complete recovery, we are witnessing signs of revival. The industry is getting back to normalcy after facing the adverse effect of the slowdown,” feels M Parekh, Spokesperson, and Opera Ceramics in Morbi.
The Morbi ceramic industry has also pinned its hopes on the government for helping the sector revive completely. It has requested the Gujarat government to put a stop to the dumping of cheaper Chinese goods on Indian shores. In addition, the industry is demanding a reduction in prices of gas and fuel to survive the challenging times.
Hit by the global economic turmoil, over 100 roof tile manufacturing units in and around Morbi are now facing a shortage of quality fuel, which is supplied by the state government for running the factories. Rajkot Manufacturers claim that they are getting lignite of deprived quality at much elevated rates from government
Following a meeting organized by the Morbi Roof Tiles Association, all the units have now decided to down their shutters from 1st of March, if their demand for good quality lignite is not attended by the state government. The strike will severely affect production and the roofing tiles industry on large.
The roof tiles industry in Morbi employs over 10,000 workers in manufacturing process, and accounts for 70 per cent of the country’s total production.
Most of the workers involved in the industry are locals.
J J Patel, the president of the Roof Tiles Manufactures Association, said: “The lignite provided to us from the new mines in Bhavnagar has over 40 per cent moisture content, which makes it difficult for the kilns to reach the required temperature of 1,100 degree centigrade.”
He also admitted “We are paying higher rates for inferior quality fuel, which doubles up our production costs. The industry cannot afford to function at these production rates during a slowdown when the demand has already decreased.”
The manufacturers say they are also concerned for the workers, but are not able to run the operations further under the prevailing economic downturn.
Each of the 107 units in the area require 60 trucks of the fuel — each weighing 10 to 17 tonnes, per day. Around 10,000 roofing tiles are produced by each unit in Morbi per day.
Veljibhai Patel, an owner of a tile manufacturing unit said: “The orders for lignite have already been placed till this month-end. So we have decided to continue till then.”
Until last year, roof tiles units, like many other industries, were supplied with high quality lignite from the Pandhro mines, which is owned by the Gujarat Mineral Development Corporation (GMDC).
Now, Pandhro site is reserved for power generation, and lignite is supplied to industries from other less known sites like Mata No Madh in Kutch, and Rajpardi near Surat. Bhavnagar, from where Morbi is supplied lignite, is a relatively new site.
Patel added: “The lignite supplied from Mata No Madh has more dust component, while that from Bhavnagar has more moisture. Both are of inferior quality, but still we are ready to settle for the material from Mata No Madh.”
In addition to the quality consciousness, the manufacturers are also concerned about the pricy lignite they receive from Bhavnagar.
The lignite from Bhavnagar costs Rs 2,600 per truck, while the one supplied from Mato No Madh and Pandhro costs Rs 2400 to 2500 per truck.
The Composite Marble Stone is made from natural marble and is an industrial product, which uses selected marble chips, bound with polyester resin. The production and use of agglomerate marble sympathetically resolves questions of ecology, aesthetic and economy. Main characteristics of the agglomerate, when compared with natural marble, are:
- Uniform colour
- Superior technical characteristics
- Lower price.
Over the years technology has developed, improving standards of Composite Marble. These changes include:
- Composite Marble made of white marble with colour pigments added, improving variety of colors and shades which are not available in nature
- Composite Marble is made of quartz, instead of marble, which are very resistant and versatile materials.
Although natural stone has its beginnings in the earth itself, treatment and manufacture is necessary to adapt it to our surroundings.
Quarrying: – The natural stone that we use is extracted from our own quartz, marble or granite quarries by using, and also innovating, the latest technology.
Development and manufacture: Natural stone goes through various processes such as cutting or the polishing that confirms its appearance and allows it to be offered in functional formats facilitating its distribution and installation.
Some natural stones, such as Silestone®, have been treated to become longer lasting, resistant and flexible. At this stage the prior investigation process is of special importance.
Manufacture is necessary to adapt it to our surroundings, our activities cover all the processes necessary for the natural stone to become converted into an element that decorates and also makes public places and our homes more comfortable, from when it is quarried to when it is installed.
Which flooring option is best for me?
It is not easy to choose between the variety of materials used for wall and floor coverings. Designers, internal decorators, architects and consumers looking for residential solutions as much in line with the latest fashion trends as with ecological guidelines, are surrounded by an massive range of technical and aesthetic options.
At Morbi, you can choose from ceramic, marble, slate, terracotta, porcelain and mosaic tiles. Each of the above has its own aesthetic and performance related values. The most popular tile however, known for its resistance, is the ceramic tile. The best quality level of productive process combined with constant technological research and design have made this tile a favorite throughout the Asian, Europe and international market.
Which options are available in tiles to choose?
There is a huge range of tiles and natural stones available in many colors, shapes and dimensions. Most tiles appeal to very varied tastes and diverse uses; though you should always discuss usage with the manufacturer of tiles before deciding on any one.
Where can I use tiles?
Tiles, due to both their durability and aesthetic nature, can be used in any home or commercial projects for example on floors, walls, table-tops, kitchens, bathrooms, halls, porches, bedrooms, dining rooms, conservatories, patios, restaurants, hotels, shops, motor showrooms and garages.
How does the quality of tiles differ?
Although there are quality standards within the Indian tiling industry, most homeowners are not aware of this. So you should remember that although tiles are essentially a lifetime investment, a quality distinction must be made between floor and wall tiles. When purchasing floor tiles, always buy a good quality tiles as in heavy traffic areas, inferior quality tiles are more prone to wear and tear and therefore may need to be replaced in easily. This is not true in case of wall tiles. Any worries you may have, can be put at rest by contacting one of the manufacturer of ceramics listed at ceramic tiles producer’s homepage
Exim Bank’s latest study titled ‘Indian Ceramic Industry: Perspective and Export Potential‘ has observed that export potential of Indian ceramic sector is not fully tapped considering the size, diversity and price competitiveness of this sector. The study is of the view that it is time to make a conscious effort to increase export by identifying potential markets.
India ranks at 8th position in the world and produces around 2.5% of global output.
In this study, an attempt has been made to analyse India’s export opportunities for select group of ceramic products. Four different products are identified, namely unglazed ceramic tiles, glazed ceramic tiles, ceramic household articles and ornamental ceramic products. For each of these products, price competitiveness was analysed in different markets, which include the markets of leading importers of ceramic products as well as the major export markets for India. Unglazed ceramic tiles: Top three importers of unglazed ceramic tiles are USA, Germany and France. USA mainly imports from Italy, Mexico and Spain. Italy alone supplies around 80% of US import requirements of unglazed ceramic tiles. India’s export to USA is negligible. However, with regard to unit price, India is cheaper than European countries and therefore there is a scope to increase exports to USA.