Indian ceramic industry in trouble

NEW DELHI: India's ceramic industry is facing trouble due to the robust fuel prices and transportation costs. The persistent surge in gas and fuel prices over in the last one year, the transportation costs have also surged by 20-25% and it has affected the profit margins of the industry players. It is estimated that the Indian ceramic industry is worth Rs 10,000 crore.

Mr Hasmukh Patel, managing director, Asian Granito India Ltd., who is also a director of Indian Council of Ceramic Tiles and Sanitaryware (ICCTAS).“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. 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.”

Rajasthan is considered as the main source of clay for ceramic industry in Morbi. Reports suggest that 40% of the ceramic units have been shut down since the past three months as they have been unable to bear the production costs.

India houses 750-ceramic products manufacturers and out of these, more than 500 units are situated at the Morbi area in Gujarat.