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Industry Analysis : Marble and Other Dimensional Stones Industry India's contribution to the world dimensional stone market

is around 10 percent and it produces 27 percent of the world's stone. The annual growth rate of the industry is about 15 percent and it is now the third largest natural stone producer in the world, after Italy and China. (major stones- raj – 90%)

SUPPLY OF MARBLE Rajasthan has a large spectrum of minerals in which building stones enjoy an important place. Marble occupies a unique position among building stones due to its pleasant look and easy carving. District Ajmer (Makrana), Rajsamand, Udaipur, Chittorgarh, Banswara, Alwar, Sirohi, Jaipur etc is known for the mining of Marble. Estimated marble reserves of the state are 1100 million tons, which are more than 91% of the total marble reserves of the country.

Marble Supply near Udaipur There are three main belts of marble in Udaipur district iz. Babarmal-Devimata, Jaspura-Daroli and Rikhabdeo. All these three belts produce different types of marbles i.e., pink from BabarmalDevimata, white from Jaspura-Karoli and green from Rikhabdeo. Besides, important occurances are also found in Salumber and Dhariawad tehsils. Babarmal marble deposit: Pink marble of Aravalli Supergroup occurs near villages Devimata and Babarmal. It is located about 25 kms. south of Udaipur. The marble is siliceous, light pink to dark pink in colour, fine to medium grained impurities form grey to greenish color bands which make it attractive. Rikhabdeo Green marble deposit: Green marble is the trade name of serpentine marble. In the past, the only known occurences of this rock were in Baroda (Gujrat), from where it was mined and marketed under the trade name of "Green Marble". After the discovery of green marble in Udaipur and Dungarpur districts of Rajasthan, it has become one of the most popular building stone product from this region.

The product differentiation mainly occurs due to the difference of the materials from the quarry. Thus forward integration is easy while backward integration in the industry is difficult. The industry is mainly unorganized and the size of the players varies significantly. Mining and stone cutting activities in Rajasthan have developed over the years and have grown in past 20-25 years play an important role in the economy of the state providing direct and indirect employment to people. Marble and granite processing industry is typical in nature. crystalline limestone occurring near Jaspura. marble in Udaipur district is also being mined in small amounts near Bamniya. The industry is characterized by the following features:  Initial Investment requirement for setting up a processing unit is relatively low. Lately many mine owners have started their own processing units. There are numerous marble processing units in and near Udaipur. . Lohagarh (Dhariawad tehsil) etc.Jaspura-Daroli marble deposit: Greyish-White coloured. while the investment required for setting up mining operations is much more. Daroli villages in 25 km. its efficiency is dependent on the quarry products. This has led to increased competition and price wars for marble. In many countries processing is done on highly sophisticated machinery for quality production. Suppliers that can provide big quantities and can operate their own quarries have a clear edge over others. The processing are units engaged in cutting of marble in the form tiles and slabs of different sizes. Marble and other dimensional stones Processing Industry The availability of marble mines near Udaipur region has led to the establishment of marble cutting and processing industry in the region. is being mined as adanga marble having various patterns and shades. Baroda (Salumber tehsil). This enables customer to choose material from the firm with the lowest prices. Manpur. The marble explosion and cutting giving good revenue to state and central government through sale of finished products in local and export markets. medium grained. In Udaipur very few units are using these machines while rest of the industry uses locally fabricated machinery by few existing manufacturers in the country. east of Udaipur on Udaipur-Chittaurgarh highway.  Customer switching cost is low. Besides.

Usually. Out of total marble exported in 2010-11. viz. marble has become a viable option for the middle class customers which have led to the increase in the demand over the years. Small suppliers sometimes dump the market by lowering their prices severely. strength and its elite perception. and stone products is anticipated to grow at around 15% CAGR. just for the sake of selling their product and generating cash. Planning Commission of India. Indirect Export where they cater to export agents which in turn are involved in exporting . Marble gains over these substitutes in its finish. Therefore. The domestic customers are mainly real estate agents. etc. exports of dressed marble at 251. Exports of marble (total) increased to 321.  Substitute Products: Ceramic slabs and tiles have come out as one of the major substitute products over marble and granite products. horizontally differentiated competition is for suppliers who target the elite market.726 tonnes accounted for remaining 22% (INDIAN BUREAU OF MINES . the growth is continuing and the demand for marble and other dimension stones. builders and distributors. horizontal differentiation also exists (according to type and color of marble produced). Udaipur marble industries cater to customers all over India with major customers located at -------------------. With the decrease in price of marbles.502 tonnes in the previous year. These alternatives are cheaper to use. sandstone. granite. Marble and other dimensional stones are usually cut in form of tiles and slabs of different sizes and are used for construction purposes. market competition is highly differentiated by quality (vertical differentiation). Market As per the Report of the Working Group for 12th Plan. This depends on target demand and whether the end user is local or production is done for export purposes. The industries in Udaipur are involved in two ways. Marble industries in Udaipur cater to both the domestic and export markets.567 tonnes constituted 78% while exports of other marbles at 69. much lighter and can be obtained in several customized shapes sizes and designs. bigger marble producers on scale do not always enjoy a clear price advantage even though their average operating cost may be lower.293 tonnes in 2010-11 from 275. 2011).  Also.  There exists a big supply excess due to which the sellers are forced to keep the prices low.  In addition.

Far East and European countries. Earlier in Rajasthan there were only two marble producing regions. The production of marble has increased in the past few years and the construction activities too have increased. where the processing industry is involved in export of material to offshore customers. There has been a global reduction in the growth rate of construction activities since last few years. most of the big mine owners followed the principle of increasing the production. Increased Supply Capacity Some new deposits of marble have been discovered. Major countries where the Udaipur mining companies export to are: -------------------------------------------- FACTORS AFFECTING SUPPLY-DEMAND The demand for marble for domestic use has increased in past few years. Moreover.e. The biggest role in this has been played by the invention of wire saw & chain saw for marble mining and diamond gang saw for the processing. Decrease in growth rate of construction activities. Advent of sophisticated mining machinery and development of new mining fields have also led to increased marble production. As a result markets were flooded with marble and there were few takers. mining and processing operations have become more effective operationally but the prices for the finished products have come back sharply. but now 20 districts of the state are producing marble. the reduction in wastage has also resulted in increased production. Marble industry has its sole dependence on the construction industry. i. Almost 50% of the world’s marble output is consumed in the Middle East . All this resulted in supply of huge surplus to the demand in the market. As supply of marble kept on increasing the prices were forced to come down. Makarana and Ambaji.the material to the builders and distributors and direct exports. Increased Production Lured by the high profit margins of the trade and low entry barriers for new entrants. To bring down the cost per ton of production. several entrepreneurs have entered in the industry. In our opinion. the present hard times faced by the industry in the state are in fact a result of imbalance of demand and supply of marble in the market. along with some external factors. The core of the problem is that rate of growth of marble production is having an increasing trend .

Italy. in the past few years. As marble is not an essential commodity.whereas the growth rate of construction activities world over is having a declining trend. Overall Global Recession Faced by the World Economy The whole world economy is facing the recessionary trend since past few years. but the commodities of necessity. Other countries like China. So the supply of marble is much more than what is required. Spain etc. This has affected most of the industries. Experts are of the opinion that the world economy is right now going through the troughs of the trade cycles. Following the growing tensions with the neighboring countries. Greece. This phenomena is not limited to India but is evident the world over. are not only producing good quality of marble. . India has to give due cognizance to its militia and defense. marble and related industries have faced a decrease in demand due to decreased purchasing power of consumers. but they have shelved their prices too. International Disturbances Major disturbances in the world and especially in the Indian subcontinent have attributed to decrease in exports of marble from India. Other Marble Producing Nations This is yet another reason for decreased exports from India.

Export 2.ABOUT COMPANY Location: Size (Area) Equipment: Varieties: Major Customers: Aim: 1. Mine PROCESS FLOW .