The ceramic industry, which did not get any specific push in the Budget, feels that it would take some more time for it to come out of the slowdown.
“Ceramic industry is dependent on real estate. Construction activity in rural areas will come to a standstill during the monsoon,” said Girish Pethapara, managing director, Decolight Ceramics Limited. According to him, the demand would increase around Diwali.
The industry growth rate fell drastically to 10 per cent from 30 per cent earlier. There are about 270 ceramic units with a combined turnover of around Rs 4,000 crore. Morbi ceramic industry produces 1.2 million square metre wall tiles, 5,00,000 square metre floor tiles and an equal amount of vitrified tiles per day.
According to Veljibhai Patel, president, Morbi Ceramic Tiles Manufacturing Association, things have started improving for the ceramic industry. About 40 per cent of the units were closed or were operating below capacity till recently but now they were operational. “The situation is improving,” he said.
Internal competition, value-added tax (VAT) and high gas prices are the major irritants for the ceramic industry, Pethapara said.