|
With the rise in standards of living and awareness about home aesthetics, good quality flooring and sanitaryware are rapidly becoming a need rather than luxury products. India has become one of the top five ceramic tile producers in the world Market. Ceramic industry is one of the most booming sectors in India with an average growth rate of 15 % per annum. In the past few years, not only the demand growth is strong, but the organized players are able to gradually wrest greater share of the epxanding market pie.
Total ceramic tiles market in India valued at Rs 110 billion in 2009, estimated to reach Rs 171 billion by 2012. Market is dominated by unorganized sector with organized sector making up 40% of total market. Market can be classified into four segments based on price range - High end tiles (Porcelain and Glazed), Ceramic tiles – High end, Ceramic tiles – Low end and Vitrified tiles.
The domestic sanitary market is estimated at Rs 2,000 crore, with the premium segment accounting for about 20 per cent. The tiles market offers bigger scope, with an estimated size of Rs 12000 crore, with the premium space already cornering 5 %.
The challenges this industry faces in India are customs duty on raw materials, high and volatile fuel costs, and cut throat competition from unorganized domestic players and imports. Customs on raw materials and allotment of fuel costs is a common issue across most sectors. Allotment of fuel prices is not uniform in all states and hence in the end, the overall production costs go up. The unorganised sector accounts for almost 55 % of this industry. This also stands as a hurdle for smooth functioning in this industry.
Based on production data from Central Statistical organisation, India's glazed / ceramic tile production grew by 2.8% to 854151.57 tonne in April-October 2010, which represents deceleration from 3.8% rise to 830546.83 tonne in the corresponding previous year period. However, this can be treated as a fair sample of All India production, and not the actual production in the country, considering the fact that many unorganized sector production data is not captured by the above data. owever,
With intensifying competition – amongst organised players, with unorganised players and also against imports, have meant players have to straddle across price line with an array of products suited to the consumer taste. Accordingly, the players are launcing matt, satin, stone and wooden styles of finish to attract customers, besides the regular glossy ones. The focus is also shifting on basis of tile sizes, with larger tile sizes, rather slabs, coming into play over their smaller counterparts. This will also be an year when consumers will be introduced to some of the slimmest tiles, with thickness as low as 4.5 mm. The ceramic industry is often considered to be a minor segment within the construction sector.
The unprecedented boom in housing has has widened the overall market size and increased per capita consumption making India one of the top players in the world. India is witnessing strong demand for ceramic tiles, thanks to rebound in real estate and construction sector. As the IT/ ITES, hospitality and healthcare sector growth accelerate, the ceramic tiles is witnessing acceleration in demand growth. Also, the improving rural, semi urban and urban income and the increased urbanisation helps in better demand growth.
|