Professional Documents
Culture Documents
com
Ceramic
and
Sanitary-ware
Market
Investment
Report:
Focus
Morbi
2016
www.vibrantceramics.com
Contents
Section
1:
Overview
of
the
Indian
Ceramics
and
Sanitary-ware
Industry
.........................................................
1
Ceramic
Tiles:
Top
10
Global
Producers
....................................................................................
1
Ceramic
Tiles:
Top
10
Global
Consumers
..................................................................................
2
Global
Ceramic
Tiles:
Top
10
Exporting
Countries
and
Importing
Countries
............................
3
Ceramic
clusters
across
India
....................................................................................................
4
Indian
ceramic
tiles
market
segmentation
................................................................................
4
Indian
Ceramics
Market:
Organized
vs.
Unorganized
and
Break-up
of
tiles
by
demand
...........
5
Indian
Ceramics
Market:
Segmentwise
growth,
2009
vs.
2013
.................................................
5
Government
initiatives
will
play
a
critical
role
in
driving
Indian
ceramics,
sanitary-ware
and
bathroom
fittings
industry
.........................................................................................................
6
Ceramic
Tiles
Market:
Distribution
System
in
India
...................................................................
6
Key
Highlights
of
the
Indian
Ceramic
Tiles
Industry
..................................................................
7
Major
players
of
the
Indian
Ceramic
Tiles
Industry
...................................................................
9
Indian
Sanitary-ware
and
Bathroom
Fittings
Industry
...............................................................
9
Industry
growth
rate:
Indian
Sanitary-ware
and
Bathroom
Fittings
........................................
10
Ground
level
research
of
Indian
sanitary-ware
industry
.........................................................
11
List
of
major
players:
Indian
ceramics
tiles,
sanitary-ware
and
bathroom
fittings
..................
12
Section
2:
Gujarats
Ceramics
and
Sanitary-ware
Industry:
Why
Saurashtra
.................................................
13
Key
factors
which
make
Morbi
in
Saurashtra,
the
next
big
destination
in
international
ceramics
and
sanitary-ware
arena
.....................................................................
14
Strategic
reasons
which
have
shaped
Morbi
in
Saurashtra
into
a
major
global
ceramics
and
sanitary-ware
hub
.............................................................................................
15
Make
in
India
and
Saurashtras
Ceramic
Tiles
cluster
.............................................................
16
Live
Market
Updates
17
Key
conclusions
for
Ceramic
and
Sanitary-ware
businesses
looking
to
enter
Saurashtra
.......
18
Annexures:
Key
Business
Contacts
for
Prospective
Ceramics
and
Sanitary-ware
Businesses
looking
at
Saurashtra
.......................................................................................................................................................
20
Annexures:
List
of
Prominent
Indian
and
International
Ceramics
and
Sanitary-ware
Exhibitions
/
Trade-
shows
..............................................................................................................................................................
21
www.vibrantceramics.com
Section
1:
Overview
of
the
Indian
Ceramics
and
Sanitary-ware
Industry
Based
on
industry
sources,
global
ceramic
tiles
is
likely
to
reach
18,154.1
million
square
meters
by
2018
signifying
a
CAGR
of
8.9%
over
2012-18.
Source:
Ceramic
World
Review
www.vibrantceramics.com
Source:
Ceramic
World
Review
The
break
down
in
consumption
of
ceramic
tiles
by
geographical
area
is
very
similar
to
that
of
produc-
tion.
In
Asia,
the
consumption
of
ceramic
tiles
was
maintained
at
65.5%
in
2013.
2
|
Ceramic
and
Sanitary-ware
Industry:
Focus
Saurashtra
January
2016
www.vibrantceramics.com
Global
Ceramic
Tiles:
Top
10
Exporting
Countries
and
Importing
Countries
Top
10
Exporting
Countries
Top
10
Importing
Countries
Top
10
Countries
with
Highest
Per
Capita
Consumption
of
Ceramic
Tiles
www.vibrantceramics.com
MSM
=
Million
Square
Meters
Based
on
industry
sources
4
|
Ceramic
and
Sanitary-ware
Industry:
Focus
Saurashtra
January
2016
www.vibrantceramics.com
Indian
Ceramics
Market:
Organized
vs.
Unorganized
and
Break-up
of
tiles
by
demand
Structural
shift
in
consumer
preferences
to
better
value
proposition.
Vitrified
tiles
to
drive
profitability
improvement
especially
for
branded
players.
5
|
Ceramic
and
Sanitary-ware
Industry:
Focus
Saurashtra
January
2016
www.vibrantceramics.com
Government
initiatives
will
play
a
critical
role
in
driving
Indian
ceramics,
sanitary-ware
and
bathroom
fittings
industry
Focus
of
the
Modi
Government
on
infrastructure
to
create
exponential
business
opportunities
for
companies
in
the
ceramic
tiles
and
sanitary
ware
Industry.
6
|
Ceramic
and
Sanitary-ware
Industry:
Focus
Saurashtra
January
2016
www.vibrantceramics.com
Key
Highlights
of
the
Indian
Ceramic
Tiles
Industry
www.vibrantceramics.com
Indian
ceramic
fles
sector,
despite
being
the
third
largest
fles
market,
is
growing
at
the
fastest
pace
amongst
top
ve
markets
in
the
world.
Indian
ceramic
fles
industry
is
748
million
sq.
mtr.
as
of
March
2014.
Industry
size
is
Rs.
21,
500
crore
as
of
March
2014.
The
growth
of
Indian
fle
sector
of
14%
CAGR
over
CY08-CY14
is
more
than
twice
the
world
average
CAGR
of
6.9%
over
the
same
period.
Per
capita
consumpfon
of
fles
in
India
is
lowest
among
the
top
ve
countries,
providing
immense
potenfal
for
growth.
Favourable
country
demographics
The
key
catalysts
for
rising
consumpfon
of
ceramic
fles
in
India
are
second
largest
and
young
populafon
(median
age
of
25.5
years
in
2012),
rising
disposable
income
and
increasing
urbanisafon.
Consumerism
is
likely
to
fuel
the
demand
for
ceramic
products,
which
are
discrefonary
in
nature.
Tier-2
and
Tier-3
cifes
are
likely
to
lead
the
demand
growth
and
urban
/
metro
cifes
will
add
with
replacement
demand.
Based
on
Cushman
and
Wakeeld's
report,
the
total
housing
demand
across
India
is
likely
to
be
88.78
mn
units
by
2017
owing
to
urbanisafon
and
increasing
populafon.
It
expects
2015
to
be
the
inecfon
year
for
commercial
real
estate
sector,
as
demand
is
likely
to
surpass
supply
due
to
expected
improvement
in
the
Indian
economy.
The
report
esfmates
Indian
hotel
inventory
to
increase
by
over
65%
by
2017
and
approximately
22
mn.
sq.
k.
of
new
mall
supply
to
be
added
to
the
top
eight
cifes
by
2015
across
India.
Rising compeRRon
Lured
by
the
demographic
prole
and
improving
prospects
of
housing
and
construcfon
sector,
many
foreign
companies
are
entering
the
Indian
ceramics
sector
with
a
view
to
leverage
the
opportunity.
RAK
Cermics,
leading
global
player
in
ceramic
fle
sector,
is
expanding
and
growing
at
50%
over
the
last
two
years.
Monalisa
Tiles,
the
third
largest
fle
manufacturer
in
the
world,
is
venturing
into
India
with
an
inifal
investment
of
US$
25
million
and
plans
to
open
15
stores
in
FY15.
Tiles
being
a
volume
play,
expansion
is
inevitable.
To
leverage
the
current
opportunity
and
tackle
with
surplus
capacity
situafon,
most
companies
are
going
slow
on
organic
expansion
plans
and
are
eyeing
to
partner
with
unorganised
sector
which
consftutes
~50%
of
the
total
sector.
For
organised
players,
the
cost
of
capacity
expansion
is
reduced
and
the
already
available
capacity
enables
immediate
revenue
generafon
lowering
the
payback
period.
For
unorganised
players,
there
is
a
ready
market
for
their
producfon
as
organised
players
are
recognised
by
their
brands.
www.vibrantceramics.com
Based
on
industry
sources
*estimated
From
Jan.
14
to
Oct.
15,
India
exported
vitrified
tiles
worth
Rs.
13.73
billion
(US$
208.98
million)
and
glazed
tiles
worth
Rs.
43.02
billion
(US$
654.76
million).
Brazil
(31.2%)
and
Saudi
Arabia
(18.1%)
are
the
two
largest
buyers
of
vitrified
tiles
from
India.
Saudi
Arabia
is
the
largest
buyer
(36.9%)
of
glazed
tiles
from
India.
Indian
Sanitary-ware
and
Bathroom
Fittings
Industry
As
of
2015,
Indias
sanitary-ware
and
bathroom
fittings
industry
is
estimated
to
be
valued
at
a
combined
Rs.
8,000
crore,
which
was
Rs.
6000
crore
two
years
ago.
Sanitary-ware
segment
repre-
sents
one
third
of
total
revenue,
whereas
bathroom
fittings
represents
two
third
of
total
rev-
enue.
The
industry
has
grown
nearly
25%
in
the
last
couple
of
years.
With
a
growth
rate
of
nearly
13%,
the
sanitary
ware
and
bathroom
fitting
industry
is
projected
to
be
valued
at
approximately
Rs.
10,000
crores
by
the
year
2017.
Today
only
47%
of
the
total
population
in
India
has
access
to
sanitation
facilities.
The
organized
segment
in
the
sanitary
and
bathroom
fitting
industry
comprises
of
nearly
55%.
9
|
Ceramic
and
Sanitary-ware
Industry:
Focus
Saurashtra
January
2016
www.vibrantceramics.com
As
per
the
census
2011
data,
19%
of
urban
homes
in
India
do
not
have
a
toilet
and
this
emphasizes
on
the
tremendous
growth
potential
this
segment
have.
The
projected
revenue
level
for
2017
may
be
achieved
sooner
than
estimated
if
the
government
successfully
implements
its
Swachh
Bharat
Abhiyaan,
wherein
crores
of
rupees
would
be
spent
in
the
construction
of
new
sanitary
facilities
in
rural
as
well
as
urban
areas
across
India.
Source:
Nitin
Khuranas
report
from
the
Lal
Bahadur
Shastri
Institute
of
Management,
New
Delhi
10
|
Ceramic
and
Sanitary-ware
Industry:
Focus
Saurashtra
January
2016
www.vibrantceramics.com
Source:
Nitin
Khuranas
report
from
the
Lal
Bahadur
Shastri
Institute
of
Management,
New
Delhi
www.vibrantceramics.com
List
of
major
players:
Indian
ceramics
tiles,
sanitary-ware
and
bathroom
fittings
Source:
Nitin
Khuranas
report
from
the
Lal
Bahadur
Shastri
Institute
of
Management,
New
Delhi
www.vibrantceramics.com
Section
2:
Gujarats
Ceramics
and
Sanitary-ware
Industry:
Why
Saurashtra
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
o
www.vibrantceramics.com
As
seen
from
the
map
above,
the
Saurashtra
region
of
Gujarat
is
the
national
hub
for
ceramic
tiles
and
sanitary-ware
market
in
India,
with
production
concentrated
in
Morbi,
Wankaner,
Thangadh,
Bam-
anbor,
Himatnagar
and
Shapar-Veraval
areas
of
Rajkot
and
Porbandar
districts.
Morbi
in
Saurashtra
is
the
nerve
centre
of
the
Indian
Ceramic
Tiles
and
Sanitary-ware
Industry
and
is
witnessing
a
struc-
tural
shift
via
exclusive
tie
up
with
Branded
Ceramic
Tile
Players.
Key
factors
which
make
Morbi
in
Saurashtra,
the
next
big
destination
in
international
ceramics
and
sanitary-ware
arena
600
14
|
Ceramic
and
Sanitary-ware
Industry:
Focus
Saurashtra
January
2016
www.vibrantceramics.com
Strategic
reasons
which
have
shaped
Morbi
in
Saurashtra
into
a
major
global
ceramics
and
sanitary-ware
hub
Morbi
(Saurashtra)
produces
70%
of
Indias
gross
ceramic
production
and
5%
of
the
world's
needs.
There
are
around
600
ceramic
units
with
production
worth
Rs.
40
billion
(US$
610.54
million)
annually.
The
main
products
are
ceramic
tiles,
vitrified
tiles,
digital
tiles,
floor
tiles,
glazed
wall
tiles,
luster
wall
tiles,
sanitary
ware,
porcelain
tiles,
spartek
tiles,
glaze
tile,
roofing
tiles
and
mosaic
tiles.
Morbi's
ceramic
factories
belong
to
small
and
medium
scale
units
which
together
comprise
the
largest
ceramic
production
in
India.
www.vibrantceramics.com
MAKE IN INDIA
Excess
producfon
has
led
to
the
decrease
of
ceramic
fles
being
imported
from
China.
Thus
promofng
domesfc
products
in
India
(self-reliance).
Rapid
growth
of
Saurashtra's
ceramic
fles
and
sanitaryware
cluster
has
promoted
micro
level
entrepreneurship.
16
|
Ceramic
and
Sanitary-ware
Industry:
Focus
Saurashtra
January
2016
www.vibrantceramics.com
Live
Market
Updates
Ban
on
coal
based
gasifier
plants
in
Morbi;
structurally
positive
for
Indias
Ceramics
and
Sanitary-ware
industry
Gujarat
Pollution
Control
Board
(GPCB)
had
banned
the
use
of
coal-based
gasifiers
in
Morbi
in
October
2013
and
ordered
to
run
the
plants
on
Liquefied
Natural
Gas
(LNG).
Since
Morbi
is
the
hub
of
unorganized
market
players
this
has
resulted
into
the
decrease
of
the
competitiveness
of
the
unor-
ganized
players
as
the
usage
of
LNG
increased
their
costs
by
~30%
to
35%.
This
ban
has
been
a
boon
in
disguise
by
bringing
the
unorganized
and
organized
players
to
a
level-playing
field.
www.vibrantceramics.com
www.vibrantceramics.com
In
addition,
Greenfield
expansions
are
turning
expensive
due
to
rising
land
prices,
rising
power,
fuel
costs
and
gas
shortage
problems.
Most
of
the
largest
and
leading
industry
players
including
international
ones
such
as
RAK,
Kajaria,
Somany,
HR
Johnson,
Asian
Tiles
and
NITCO
are
entering
into
JVs
with
unorganized
players
(~50%
of
the
industry)
to
take
advantage
of
the
already
available
capacity
in
the
industry.
For
all
these
industry
leading
players,
the
cost
of
capacity
expansion
is
reduced
and
the
already
available
capacity
enables
immediate
revenue
generation
lowering
the
payback
period.
Also
most
of
the
unorganized
players
are
based
at
Morbi,
which
is
nearer
to
the
consuming
markets,
reducing
logistics
cost.
For
unorganized
players,
there
is
a
ready
market
for
their
production
as
organized
players
are
recognized
by
their
brands,
resulting
in
higher
capacity
utilization
which
enables
better
return
on
investment.
Going
forward,
many
top
players
plan
to
enter
into
more
JVs
to
increase
their
capacities
and
thereby
improve
their
profitability.
The
industry
case
of
Somany
Ceramics
is
best
illustrative
of
continuous
capacity
expansion
fueling
growth
within
Morbis
ceramic
and
sanitary-ware
cluster
as
seen
below:
Somany
Ceramics:
JV
acquisition
cost
details
JV
Company
Vintage
Tiles
Private
Ltd
Commander
Vitrified
Private
Ltd.
Amora
Tiles
Private
Ltd.
Vicon
Ceramics
Private
Ltd.
Acer
Granito
Private
Ltd
Capacity
Cost
Stake
Period
Location
(msm)
(Rs
Mn)
26%
Oct-11
Morbi,
Gujarat
2.65
50.0
26%
51%
26%
26%
Apr-12
Aug-13
Aug-13
Aug-13
Morbi,
Gujarat
Morbi,
Gujarat
Morbi,
Gujarat
Morbi,
Gujarat
Acquisition
2.65
2.45
2.10
2.10
32.5
100.0
50.0
51.1
Cost
per
MSM*
(Rs)
72.6
47.2
80.0
91.6
93.6
Product
Polished
Vitrified
Tiles
Polished
/
Glazed
Vitrified
Tiles
Ceramic
Wall
Tiles
Industrial
Vitrified
Tiles
Polished
Vitrified
Tiles
www.vibrantceramics.com
Contact
Person
Designation
Morbi-Dhuva
Glaze
Tiles
Association
Nilesh
Jetpariya
President
Gujarat
Granito
Manufacturers
Association
K.G.
Kundariya
President
Gujarat
Ceramic
Floor
Tiles
Manufacturers
Association
Prafulbhai
Detroja
President
Sanitary
Wares
Manufacturers
Association
Kiritbhai
Patel
President
Indian
Council
Of
Ceramics
Tiles
&
Sanitaryware
(ICCTAS)
Ashok Kajaria
Chairman
Ramesh
K.
Mittal
Chairman
Federation
of
Sureshbhai
P.
Ceramic
Industries
Sompura
Rajkot
Chamber
of
Commerce
and
Industry
President
Contact
Details
First
Floor,
1-Real
Plaza,
8-A
National
Highway,
Morbi-
363642,
Gujarat(INDIA)
Tel:
91-2822-244053
E-mail:
morbiceraasso@yahoo.com
http://www.ceramicassociation.com/index.php
First
Floor,
1-Real
Plaza,
8-A
National
Highway,
Morbi-
363642,
Gujarat(INDIA)
Tel:
91-2822-244053
E-mail:
granito.granito@yahoo.com
http://www.ceramicassociation.com/index.php
First
Floor,
1-Real
Plaza,
8-A
National
Highway,
Morbi-
363642,
Gujarat(INDIA)
Tel:
91-2822-244053
E-mail:
morbiceraasso@yahoo.com
http://www.ceramicassociation.com/index.php
First
Floor,
1-Real
Plaza,
8-A
National
Highway,
Morbi-
363642,
Gujarat(INDIA)
Tel:
91-2822-244053
E-mail:
morbiceraasso@yahoo.com
http://www.ceramicassociation.com/index.php
4th
Floor,
PHD
House,
4/2
Siri
Institutional
Area
August
Kranti
Marg,
New
Delhi
110016
Tel:
91-11-26964238
E-mail:
akk@kajariaceramics.com
http://www.icctas.com/
"Vanijya
Bhavan",
,
International
Trade
Facilitation
Center,
3rd
Floor,
1/1
Wood
Street,
Kolkata-700016
Tel:
91-33-22891721/22/23/25
E-mail:
rkmittal@dkagencies.com
http://www.capexil.com/
Anchor
Sanitaryware
Pvt.
Ltd.,
Tarnetar
Road,
Thangadh.
Gujarat
(INDIA)
Mobile:
91-9825218117
http://www.ceramictownthangadh.com/
1st
Floor,
Centre
Point,
Karansinhji
Main
Road,
Rajkot
360001
Tel:
(91)-281-2227400
/
500
E-mail:
shreerajmoti1@rediffmail.com
http://www.rajkotchamber.com/
www.vibrantceramics.com
Location
Website
ET AceTech
Multiple
locations
across
India
http://www.etacetech.com/
Multiple
locations
across
India
http://www.insideoutside.in/exhibit-with-us
Indian Ceramics
Ahmedabad, Gujarat
http://www.indian-ceramics.com/
Ceramic Asia
Ahmedabad, Gujarat
http://www.indian-ceramics.com/
Dubai
https://www.thebig5.ae/
Spain
http://cevisama.feriavalencia.com/en/
CERSAIE
Bologna, Italy
http://www.cersaie.it/en/