Faced with several issues, the Rs 10,000 crore Indian ceramic industry is going through a rough patch. According to industry sources, high fuel prices and transportation costs have hit the industry hard.
With constant increase in gas and fuel prices over the past one year, the transportation costs have also increased by 20-25 per cent and this has directly hit the profit margins the industry players.
“Due to rise in fuel costs, our landing cost for raw materials has increased by almost 30 per cent. High gas prices and increasing fuel price have affected production cost and we cannot pass it on as industry is going through slowdown,” said Hasmukh Patel, managing director, Asian Granito India Ltd., who is also a director of Indian Council of Ceramic Tiles and Sanitaryware (ICCTAS).
Rajasthan is the main source of clay for ceramic industry in Morbi. “While the rates of ceramic products have not increased, at present the demand is also low as real estate activity has slowed across India. This has affected the margins of the industry players by around 50 percent ,” Patel added.
“During the last one year, gas prices have increased by over 50 per cent. As petrol and diesel prices have increased, the raw material cost have also gain by 25 per cent in the last six months. This has brought down the industry activity,” said Rajubhai Dhamasana, president of Morbi–Dhuva Glaze Tiles Association.
He further added, “Almost 40 per cent of ceramic units have been closed since last three months as they are unable to bear the production costs. The government should take some steps which might be of some relief to us.”
Speaking on the dumping issue Hasmukh Patel further added, “The government should impose anti dumping duty. We have approached the central government earlier on this matter and will take it up in the near future as well.”
In India there are about 750 ceramic products manufacturers and out of these, more than 500 units are located at the Morbi area in Gujarat. The total turnover of the Indian ceramic industry is about Rs 10,000 crore and Gujarat contributes Rs 7000-8000 crore in it. The industry gives direct and indirect employment to the over 6 lakh people across India.
