The Hindu Business Line : Indian tile industry may gain from China move

Mumbai, Jan. 19 Increase in freight charges and total withdrawal of export incentives to tile makers by China are bound to augur well for the Indian tile industry.

anti-dumping duties

The Indian Council of Ceramic Tiles and Sanitaryware (ICCTAS), an apex body of tile manufacturers, is clamouring for the imposition of an anti-dumping duty on the import of glazed wall and floor tiles. The domestic market for glazed tiles is estimated at about Rs 5,000 crore.

In 2003, the Government imposed anti-dumping duty on the import of vitrified tiles. In the absence of the incentive of 12.5 per cent and with freight charges up, Chinese imports can no more be a lucrative proposition in the Indian context. “Imports from China, which accounted for about Rs 1,000 crore in 2007, will taper down to Rs 300-400 crore this year,” said Mr Vijay Aggarwal, Managing Director, H&R Johnson (India) Ltd.

H&R expansion

H&R is a major player on the domestic front with sales of about Rs 1,000 crore. With an annual production of 40 million sq m, the company is said to command a market share of close to 30 per cent. Leading listed players in the segment include Euro Ceramics, Nitco Tiles and Kajaria Ceramics.

Mr Aggarwal said that H&R sales were up 25 per cent over last year and that the company was looking to touch Rs 3,000 crore by 2012. Vitrified tiles constitute 45 per cent of the sales; the rest is from wall and floor tiles.

H&R intends to establish additional capacities at its existing plants in Dewas (Madhya Pradesh), Pen (Maharashtra), Kunigal (Karnataka), Karaikal (Puducherry), Vijaywada (Andhra Pradesh) and Rajkot (Gujarat) at the cost of Rs 750 crore over the next five years.

New products in the H&R portfolio include wooden laminate flooring, imported from Germany, and glass mosaic from Spain. The glass-mosaic comes on wire mesh, which can be fixed on a concrete bed.

More Stories on : Ceramics | Outlook | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Ticker boards at local markets

TRAI restarts work to bring in carrier access codes

Private airlines hope to operate on Abu Dhabi, Dubai routes

Reliance Power IPO issue price at Rs 450

ICICI Bank’s Q3 net rises 35% on higher biz volume

Indian tile industry may gain from China move

SBI invites unions for talks on merger concerns