Gujarat plans to upgrade ceramics sector

The government of Gujarat (GoG) will help to upgrade the state's ceramics industry to global standards so that it can compete and beat the Chinese ceramics industry by the end of next fiscal.

The government has identified four clusters, at Kutch, Rajkot, Morbi and Mehsana, for the ceramics industry in the state.

The clusters are expected to be commissioned by the end of this fiscal.

The ceramics industry is a power intensive industry and with naptha-based captive power plants, the cost of power is higher. This made Indian products more expensive than ceramics from China.

"The state is planning gas based power for the ceramics industry to reduce the cost of power and make it competitive in the international market." Anil Patel, minister of state for industries told Business Standard on Monday.

Gujarat was home of over 70 per cent of the semi-organised players in the Indian ceramics industry. These made ceramic floor and wall tiles and a few manufactured vitrified products.

"The state will utilise the latest technology to develop the industry to international levels. We target to overtake China by end of the financial year 2005," said Narendra Modi, chief minister of Gujarat.

Industry sources complained China was dumping tiles in the Indian market. The Indian government has slapped anti-dumping duty on Chinese tiles.

Chinese tiles were being rerouted through Indonesia, Thailand, Malaysia and some SAARC countries and were cheaper than Indian tiles.

"The Chinese goods being dumped presently in the Indian market were sub-standard. These dumped products are being passed on to consumers as vitrified tiles, while they actually are just ceramic tiles," complained Girishbhai Pethapera, chairman of Gujarat Ceramic Floor Tiles Manufacturers' Association (GCFTMA).

Industry demands for better checking of tiles for 'country of origin' certificate had been ignored. The anti-dumping duty covered goods from only China and the UAE.

Small-scale ceramics units could not import raw materials like clay, machinery, grinding media and soluble salts because of the high import duty. The SSI limit had not been increased either.

These were also posing problems.