The Hindu Business Line : `Granite industry continues to shine'

Granite exports from the country are expected to register a 20 per cent increase over the previous year as the Indian products have gained worldwide acceptance sidelining the Italian material.

According to Mr G. Krishna Rao, Managing Director of Pokarna Ltd, the strengthening of euro, improvement in quality and the growing demand for natural products in the US and elsewhere has paved the way for increased granite exports. Consequently, the value of granite exports from the country crossed Rs 2,000 crore last fiscal against Rs 1,400 crore in 2001-02.

The exports during this year are also expected to be 20 per cent higher than last year.

Mr Rao told Business Line that with the world market shifting towards the Indian products, sickness was engulfing the Italian factories. What happened to the domestic granite industry in the mid-1990s was happening to the Italian industry at present. At that time, Italy used to import raw granite blocks from India and export finished products to various countries.

Granite units mushroomed in India from 1991 to 1994. Thereafter, one after the other became sick and by 1998 over 90 per cent of the granite manufacturing units in the country have closed shop. The revival of the sick industries started from 1999 and by 2002 most of the sick units have either been revived by the same management or by the new management that acquired the factories.

Mr Rao said that many sick granite units, located in Andhra Pradesh, Karnataka and Tamil Nadu (the three States account for 80 per cent of the granite business in India), have started operations once again following one time settlement of their dues to banks and financial institutions.

Apart from the revival of the sick units, he said that eight new projects have come up in the country, most of them in Karnataka, last year. On the other hand, many of the existing granite firms have expanded their capacity. Pokarna itself had spent Rs 15 crore last year on expansion and modernisation of its manufacturing plant. The company had added two gang-saws last year and would be installing four more gang-saws shortly.

The rise in exports was accompanied by an increasing demand for granite products in the domestic market. The domestic demand increased sharply with emergence of several multiplexes and large shopping malls and the change in the life styles of people. Given the current trend, he says, India will emerge as the major market for granite products in a span of next 10 years.