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Ceramic
and
Sanitary-ware
Market
Investment
Report:
Focus
Morbi
2016
The
heart
of
the
Indian
ceramic
industry
is
at
Morbi,
Saurashtra,
commanding
about
70%
of
the
market
share
of
all
ceramic
products
in
India
with
459
operational
industry
units.
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
Source:
Ceramic
World
Review
In
2013
world
tile
production
reached
12
billion
sq.
mtr.
-
up
6.4%
over
2012.
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.
Source:
Ceramic
World
Review
Top
10
Countries
with
Highest
Per
Capita
Consumption
of
Ceramic
Tiles
Indian
ceramic
tiles
market
segmentation
MSM
=
Million
Square
Meters
Based
on
industry
sources
Based
on
industry
sources
Structural
shift
in
consumer
preferences
to
better
value
proposition.
Vitrified
tiles
to
drive
profitability
improvement
especially
for
branded
players.
Focus
of
the
Modi
Government
on
infrastructure
to
create
exponential
business
opportunities
for
companies
in
the
ceramic
tiles
and
sanitary
ware
Industry.
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
Favourable
country
demographics
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.
Expected
recovery
in
real
The
report
esfmates
Indian
hotel
inventory
to
increase
by
over
65%
by
2017
and
approximately
22
estate
mn.
sq.
k.
of
new
mall
supply
to
be
added
to
the
top
eight
cifes
by
2015
across
India.
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.
Rising
compeRRon
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
Asset
Light
Strategy
Key
enables
immediate
revenue
generafon
lowering
the
payback
period.
For
unorganised
players,
there
is
to
grow
faster
with
protability
a
ready
market
for
their
producfon
as
organised
players
are
recognised
by
their
brands.
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%.
Source:
Nitin
Khuranas
report
from
the
Lal
Bahadur
Shastri
Institute
of
Management,
New
Delhi
Source:
Nitin
Khuranas
report
from
the
Lal
Bahadur
Shastri
Institute
of
Management,
New
Delhi
Source:
Nitin
Khuranas
report
from
the
Lal
Bahadur
Shastri
Institute
of
Management,
New
Delhi
Key
factors
which
make
Morbi
in
Saurashtra,
the
next
big
destination
in
international
ceramics
and
sanitary-ware
arena
600
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.
National
Highway
8-A
between
Morbi
and
Wankaner
is
flanked
by
all
the
industries
related
to
ceramic
tiles
and
sanitaryware
manufacturing.
Since
2012
the
road
between
Pipli
&
Jetpar
village
has
been
rapidly
growing
with
many
new
digital
tile
plants.
A
large
number
of
small-scale
ceramic
pottery
manufacturing
units
are
also
located
around
Thangadh.
The
shadowed
polygonal
region
of
Saurashtra
(As
seen
in
the
image
on
left)
between
Jetpar,
Thangadh,
Wankaner
and
Morbi
forms
the
world's
2nd
largest
ceramic
tiles
manufacturing
zone.
These
units
also
cater
to
export
markets
including
Europe,
Middle
East,
Sri
Lanka,
Bangladesh,
Asian,
African
and
Latin
American
countries.
MAKE IN INDIA
Excess
producfon
Rapid
growth
of
has
led
to
the
Saurashtra's
ceramic
decrease
of
ceramic
fles
and
fles
being
imported
sanitaryware
cluster
from
China.
Thus
has
promoted
micro
promofng
domesfc
level
products
in
India
entrepreneurship.
(self-reliance).
Multiple
locations
ET
AceTech
http://www.etacetech.com/
across
India
Multiple
locations
Inside
-
Outside
Mega
Show
http://www.insideoutside.in/exhibit-with-us
across
India