A robust Indian real estate industry is feeding into the demand for ceramic tiles. Besides, widely used in Indian households for floors and walls, ceramic tiles are also finding wider applications in retail, schools, hospitals, laboratories, & much more.India is also making a mark in the global tiles export market.
Ceramic tiles sector in India is a lucrative and profitable business to explore. A robust Indian real estate industry is feeding into the demand for ceramic tiles Besides, widely used in Indian households for floors and walls, ceramic tiles are also finding wider applications in retail, schools, hospitals, laboratories, & much more.
As per Niti Aayog, a Government of India (GOI) think tank Indian real estate is pegged at USD 120 billion in 2017. In 2040, Indian real estate is expected to grow fivefold to reach USD 650 billion. The government initiatives such as Smart City, affordable housing, Clean India (Swach Bharat) will further give impetus to the tiles demand in the country. Under the flagship of Clean India, GOI is building 11 million public toilets in the country, which is naturally pushing ahead the ceramic tiles sector in India.
n FY 19, the Indian ceramic tiles market is sized at USD 4.4 billion, growing by 15%, when compared to the previous year. In the past 4 years, the ceramic tiles industry in India has grown by a CAGR of 11%.
Around half of the industry is run by organized and bigger players such as H&R Johnson, Kajaria Ceramics, Somary Ceramics, Asian Granito, Nitco tiles, etc. Besides larger players, near around half of the market are also run by regional and smaller players.
The Morbi cluster located in the Gujarat province of India has made a mark on the global tiles industry. After the Guangdong region in China, Morbi is the 2nd largest ceramic tiles manufacturing cluster in the world. As per the official website, every day it produces around 2.8 million Sq. M of tiles, rendering around 600,000 direct and indirect employments. Home to 400 large & small manufacturing units, Morbi has received aggregate investments of around USD 1.05 billion in recent years.
Numerous factors have transformed Morbi into one of the largest tile manufacturing clusters in the world. Morbi was once a flourishing roof tile & brick industry. However, as the industry slowed down, local entrepreneurs diversified successfully into ceramic tiles, alongside other related industries such as sanity ware, ceramic pottery, etc.
It has access to raw materials from Gujarat and nearby province, Rajasthan. The GOI has also installed gas line supplies, ensuring seamless power supplies. Morbi is also linked to ports in Mundra & Kandla which boosted its export business alongside the import of machinery.
Ceramic tiles sector in India is making a strong mark on the export market. India's flourishing tiles industry alongside its strategic geographical locations has enabled it to enter numerous regions such as the Middle East, Africa, Europe, & the USA. In the 1st quarter of 2020, Indian export to the USA amounted to 3.3 million Sq. M- more than quadrupling in just 1 year. In the wake of anti-dumping law by the USA, Chinese tiles export to the USA has shrunk by 98%. Amidst drying imports from China, markets like India, Vietnam, Mexico, & Turkey are expected to bridge the gap.
The Government of India (GOI) has launched numerous schemes to support the growth in ceramic tiles sector in India. GST has been reduced to 18% of ceramic products from 28% earlier. Likewise, 100% FDI is available in the tiles industry to lure international investors. The government has also stipulated anti-dumping duties to foster growth in the Industry. Government initiatives in conjunction with a robust real estate sector will continue to dovetail the Indian tiles industry in a positive direction.
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