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With domestic market not showing any signs of revival over the last two years owing to slowdown in real estate sector, Morbi-based ceramic industry, which meets country's 80 per cent tiles requirements, has decided to focus on export markets.
Share of exports in overall ceramic business from Morbi was only about 8-10 per cent till 2012-13, which has touched 12-15 per cent in the current financial year, say industry sources.
"When the industry was doing good business in the country, there was less focus on exports. But now things have changed, and we need to explore other markets to survive," said Praful Detroja, president, Morbi Floor Tiles Association.
The ceramic industry in Morbi is staring at almost 40 per cent reduction in business across the country mainly because of slowdown in real estate sector and dumping of cheap products from China.
The fact that production capacity was enhance by the industry in the last three years magnifies the reduction in business.
According to sources, production capacity in Morbi's ceramic industry has risen from two million boxes to three million boxes per day over the past year, and many units are planning to further increase production. Capacity is expected to touch 3.5 million boxes by end of this year.
Chirag Unadkat, marketing and export manager, Octiva Ceramics said, "Demand for Indian ceramic products is there in international markets but the industry did not evince much interest as there was substantial demand in the domestic market. With demand subsiding in local market, the focus is on exports."
According to Unadkat, there were hardly 15 units doing exports two years ago but the number has risen to 45-50 over this period. The biggest export market for India's ceramic products is the Middle East. However, over the last one year, the market has diversified African countries, Bangladesh, Sri Lanka and Brazil being the new destination. Despite rising exports, the industry feels it can do much better with government support. The Centre has reduced export incentive from 20 per cent to 3 per cent on ceramic products while the high gas price continues to hit the industry, industry sources say. Detroja said that they have discussed the issues with both the state and Union governments but has not received a satisfactory answer. The industry is, though, betting big on Prime Minister Narendra Modi's 'Make in India' campaign.
