Vitrified tile makers continue to lose 30% market share amidst Chinese dumping

Heavy dumping and lower freight rates for import from China has been hurting the domestic vitrified tile manufactures with the domestic players losing almost 30 per cent market at the home. The vitrified tile makers are seeking government support for the same. The vitrified tiles industry has demanded anti-dumping duty on Chinese vitrified tiles import so that domestic players will be able to compete on price front.

Currently, shipping costs from China to South India tends to be almost 60 per cent cheaper than transportation costs from Gujarat, which is the largest vitrified tile making hub in the country. Resultantly, Indian vitrified tiles manufacturers have lost South Indian market since last three years and losing about Rs 2,500-3,000 crore worth business every year. 

"China is offering vitrified tiles at almost 25 per cent lesser price. Moreover, Indian transportation cost are much higher than shipping it from China because of which we are losing business in our own home market," said S C Kothari, chief executive officer of Cera Sanitaryware Limited which has been expanding its vitrified tile manufacturing capacities lately.

To send a container of 25 tonnes from Gujarat ports to any southern ports, it costs around one lakh rupees whereas road transportation tends to be even costlier to south Indian markets. On the contrary, it costs just about Rs 40,000 per container from China to South Indian states. 

Till 2013, there was an anti-dumping duty on Chinese vitrified tiles but after that Union Government removed the duty. Last year, the industry had met Ministry of Commerce and Department of Commerce officials to urge imposition of anti-dumping duty so that domestic manufacturers could get some support to fight back. However, the anti-dumping duty proposal is still under consideration.

"Indian vitrified market size is about Rs 10,000 crore and due to China and transportation difference we are losing almost 30 per cent business. If government will not impose the duty on China, the loss will increase in coming days as dumping is spreading to other parts of India also," said K G Kundariya, president of Gujarat Vitrified Tiles Manufacturing Association.

Kundariya claimed that Gujarat holds 90 per cent manufacturing share for vitrified tiles in India. The state has nearly 150 vitrified tiles production units, most of which are located at the Morbi and surrounding areas.

"We have asked commerce department to impose 25 per cent anti-dumping duty on Chinese vitrified tiles last year. We are hopeful of some positive steps soon," Kundariya added.

According to industry persons, anti-dumping is the only way to fight back with China in this front.

G G Trivedi, president of Indian Ceramic Society – Gujarat Chapter and executive director of Somany Ceramics Ltd said, "It is a matter of survival. We cannot control freight rates or pricing of other countries. In this condition anti-dumping duty is the only way to save the domestic industry.”

According to Abbey Rodriges, senior vice-president – sales at Cera Sanitaryware, being the second largest player in ceramic products manufacturing, China has been able to offer lower rates. "Biggest advantage with China is that the country is bulk producer of ceramic tiles and that's why it offers lower rates than India. Anti-dumping duty will help the Indian producers to compete at the price front," he said.