CERAMIC INDUSTRY OF

PAKISTAN

Presented to Sir Afaq Ali Khan

Presented By Muhammad
Khalid
Zohaib Ahmed
 AGENDA
Introduction Export Potential
Importance SWOT Analysis

History Pakistan Vs China

Global Overview WTO Impact

Industry Overview Problems

Types Of Ceramics Suggestion

Raw Materials

Ceramic Processing

Ceramic Units
 Introduction

 The word ceramic is derived from the

Greek word (keramikos). The term
covers non-metallic materials whose
formation is due to the action of heat. Up
until the 1950s or so, the most important
of these were the traditional clays, made
into pottery, bricks, tiles and are like,
along with cements and glass.
 Importance
 Before late 1980’s use of tiles was
mainly concentrated with the elite of
the society, The elite and general
public used “Ceramic Tiles” in their
toilets as well as in flooring, which
were considered as a sign of
prominence.
 Importance
 The enduring beauty of ceramics is part of
Pakistan’s historical and architectural
heritage from the time of the mughal era.
 Due to the durability in all weather &
extreme climatic conditions, ceramic tiles
are used for exterior finishes.
 Their totally water resistant & acid
immunity properties make these tiles for
laboratories, kitchens & bathrooms.
 Benefits

 Good shape and design

 Available in different colors than

marble
 Less of bacterial growth

 Cheaper than marble

 History
 At the time of creation of Pakistan in 1947, there
was no ceramic industry at all.
 There were certain pockets where the
concentration of such units formed a cluster.
 The government of Pakistan provided technical and
financial assistance through Ceramic Service
Center at Gujrat and Pottery Development Center
at Shahadra near Lahore.
 History

 The pottery industry developed into a ceramic

industry and better manufacturing techniques were
introduced.
 Thus in late fifties some big ceramics units like
Dada Bhoy China Karachi, Pakpore Ceramics
Lalamusa (Gujrat) were established to produce high
temperature porcelain tableware of good quality
using imported machinery.
 History

 In late sixties refractory manufacturing units

were established, namely General Ceramics
and Marshall Ceramics at Gujranwala, and
General Refractory at Karachi.
 In seventies, the production of sanitary wares
was started in an organized manner and big
units like International Ceramics, Karam
Ceramics, Frontier Ceramics, Swat Ceramics,
Trust Ceramics etc. were established and
started their production to their capacities.
 History

 In mid seventies, a few organized units for the

production of ceramic wall and floor tiles were
established on European imported technology.
The more prominent units among them were
Shabir tiles, Swat Ceramics, Karam Ceramics,
Emco Industries etc. Later on more units like
National Tiles, Master Tiles, Frontier Ceramics etc.
were established.
 Global Perspective
World exports of Ceramic products
were US $ 10.8 Billion in 2000. USA
was the largest importer in 2000 with
19% of global imports while Germany
was second with 11% share.
After the advent of marble the
ceramic industry was sustaining
losses but it regained its ability due to
the low cost as compared to the
marble.
 Industry overview
Tiles Insulators Sanitary Tableware Refractories
ware
Status Highly Highly Organized Organized Un-
Organized Organized Organized

No of units 8 1 63 150 20
Total 2,435 465 6,000 7,500 207
Employment
Installed 7 million 4,500 4.3 million 99,000 62,300
Capacity sq.meter Tonnes pieces Tonnes Tonnes

Current 6.5 million 2,500 3.7 million 45,000 33,100

Production sq.meter tonnes pieces tonnes tonnes

Capacity 95% 56% 85% 45% 53%

Utilization
Technology Capital Capital Labor Labor Labor
Level Intensive Intensive Intensive Intensive Intensive
Automation Highly Auto, Semi Low Org.Highly Low
 Key Players
Company Products
Emco Industries Wall, floor tiles & insulators

Frontier Sanitaryware tiles & wall tiles

Ceramics
Karam Wall tiles & Sanitaryware
Ceramics
Master Tiles Wall tiles & Sanitary fittings
Shabbir Tiles Wall tiles
Marshal Tiles Wall facing & flooring tiles
National Tiles Floor and face tiles
Swat Ceramics Wall tiles & Sanitaryware
 National Ceramics
Industry

Ceramics manufacturing sector plays

a significant role in the economy of
Pakistan. The sector employs over
36,000 people and contributes 0.1% to
total GDP of the country.
Its contribution to the exports of the
country is about $ 12.30 Million per
annum.
 Raw Materials
Raw materials for body include
Quarts, Feldspar, China clays and
Ball clay, Mianwali clay, K.D. 10
Stone. Raw materials for glaze
include Quartz, Feldspar, Limestone,
Zinc oxide, Barium oxide, Zirconium
and ceramic colors. Plastic of Paris is
the material that is used for
modeling and moulding of the
ceramic sanitary ware.
 Growth Trend
Amount in Millions
Rs

Products 1999- 2000-01 2001-02 2001-03

00
Tiles 2427 2482 2784 3072
Tableware 1775 1792 1876 1896
Sanitary 1212 1380 1706 2194
ware
Refractorie 754 802 880 972
s
Insulators 476 570 734 916
Total 6644 7026 7930 9050
 Ceramic Growth

Growth trend of ceramics is increasing

every year.
The industry has not only fulfilling the
domestic needs but also exporting small
quantities.
The main reason for not achieving the
significant break through in exports by
this industry is the uncompetitive cost
structure of domestic products due to
ever increasing utilities prices coupled
with the high tariffs on imported
materials
 Ceramic Processing
Ceramic undergoes through
certain processes which are:

 Slip Preparation & Glaze Making

 Casting & Drying
 Glazing
 Firing
 Inspection, Repairing, Re-firing &

Packing
 Slip Preparation & Glaze
Making

For the slip preparation the raw

materials are mixed up with water
as per the requirement. Proper
composition along with the
sufficient amount of water then
gets loaded to the ball mills for
grinding.
 Casting & Drying

Slip is cast into plaster moulds. Due to

the absorption of water the surface
becomes thick with time.
All products need to be dried to a low
water content to increase the strength
of body, which is called drying.
 Glazing
There are many glazing methods
such as spraying glaze, dipping
glaze, pouring glaze, brushing
glaze etc.
The method of spraying glaze is
mostly used due to the large
volume and complicated shapes.
This process is executed on the
conveying belt.
 Firing

These sprayed clay wares are then

taken to the kiln for firing. As a result
the bodies will take place a series of
physical and chemical reactions, and
will take a fixed shape.

There are 3 zones in the firing

process i.e.
Preheating Zone
Heating Zone
Cooling Zone
 Inspection, Repairing, Re-
firing & Packing

Finished products are determined

according to stipulated standards to
select passed products & un-passed
parts by repairing & re-firing.
Passed products are carefully packed and
sent.
 Ceramics Units

The regions where ceramics

production is engaged are:
Gujranwala

Kamoke

Nowshera Virkan

Wazirabad
 Product line
 Ceramic Tiles
 Tableware
 Sanitary ware
 Refractories
 Electric Insulators
 World Export Trends
($
Million)
Products 1999- 2000-01 2001-02 2002-03
00
Tiles 5,406 5,484 5,660 5,692
Tableware 2,204 2,164 2,048 2,072
Sanitary 1,620 1,608 1,760 1,806
Ware
Refractorie 956 928 972 960
s
Insulators 438 426 482 494
Total 10,624 10,610 10,922 11,024
 Pakistan Exports & Imports
(1999-00)
( $ Million)

Products Exports Imports

Tiles N/A 1294
Tableware 0.44 3.11
Sanitaryware 0.205 0.228
Insulators 1.68 3.72
Refractories 0.04 4.06
 Interesting Facts
Ceramics is extensively used by
NASA for its Space Shuttle.
Wapda uses it for the insulators.

Knives can be used

Ball bearings as it does not gets rust

 Interesting facts (cont.)
In the early 1980s, Toyota
researched production of an
adiabatic ceramic engine which can
run at a temperature of over 6000 °F
(3300 °C). Ceramic engines do not
require a cooling system and hence
allow a major weight reduction and
therefore greater fuel efficiency. Fuel
efficiency of the engine is also higher
at high temperature
 Project cost utilities
The cost of the project including land requirement,
building size, machines and equipment and utilities,
personnel requirement is given below: -
I Cost of the Project (Rs. in Million)
1) Land (10 Acres) = 11.978
2) Building =
56.430
3) Machines and Equipment = 114.198
4) Other Furniture & Fixture = 20.315
Fixed Cost = 202.921

Working Capital = 9.563

Total Cost = 212.484
II Utilities = 500 KW
 SWOT Analysis

Strengths
Abundance of low cost labor

Extensive supplier industry

Strong linkages with other key regional

clusters
 SWOT Analysis (Cont.)

Weaknesses
Non availability of processed raw

materials
High cost of utilities (gas &

electricity)
Low R&D for product innovation

Use of traditional techniques &

technology
 SWOT Analysis (Cont.)

Opportunities
Rising domestic demand

Large export potential in Middle

East, Africa and Central Asia

Facilitate supply chain collaboration
 SWOT Analysis (Cont.)

Threats
Low priced import from China

Changing consumer preferences

Large surplus capacities in the

international markets
Increasing regulatory pressures

Smuggling from China and Iran

 Pakistan Vs China
 Pakistan have 6 companies, whereas
China have 2500.
 10,000 m/day production is
considered to be the largest
producer in Pakistan , whereas in
China 50,000 m/day is considered to
be larger.
 WTO Impact
 Duties are low, decrease from 60 to
20%.
 Due to WTO, import is high in
Pakistan, specially from China and
Iran, because they give subsidies to
their exporters.
 Problems
 Internal
 High gas and electricity charges
 Inconsistency of policies
 Unskilled labour
 High cost of capital
 Lack of incentives for exports
 Problems (Cont..)
 External
 Cheap imports from neighboring
countries
 Subsidies given to the exporters of that
country by their government
 Reduction in duties as per WTO
 Problems

The mine sector from where the

raw materials are available is not
developed.
Due to the rain the mines gets

choked and it is unable to extract

the raw material.
 Suggestions

 Consistency of policies
 Cost of utilities should be decreased

 Smuggling from Iran & China should

be stopped.
 BOI shall bring FDI into this industry.
Thank You