Economy

‘Chinese ceramic products stranglinglocal industry’

Our Bureau Ahmedabad | Updated on April 29, 2014 Published on April 29, 2014

Clocking a compounded annual growth rate (CAGR) of over 15 per cent, the import value of Chinese ceramic products into India has grown exponentially over the past six years, according to industry body Assocham.

Imports have increased from over $237 million in 2007 to $484 million in 2012, according to analysis by The Associated Chambers of Commerce and Industry of India.

By supplying 66 per cent of India’s total ceramic imports of over $734 million in 2012, China has emerged as a major seller. This has been adversely impacting profit margins of domestic producers so much so that certain ceramic units are facing closure as they are not able to bear ever-rising production costs, noted the analysis.The overall size of the Indian ceramic tile industry is estimated to be approximately ₹18,000 crore. Morbi, in Gujarat, is the heart of the Indian ceramic industry as the cluster commands about 70 per cent of domestic production. “The structure of the Indian ceramics industry is highly fragmented with very few large players and a large number of small and medium enterprises (SMEs),” it said.

China produced about 5,200 million sq mt of ceramic tiles in 2012, but consumed 4,250 million sq mt. India has been flooded by surplus Chinese production, said DS Rawat, Secretary-General, Assocham.

He said that domestic manufacturers have been unable to pass on the rise in input costs to consumers due to low-cost competition from countries like China, and has urged the government to take corrective measures.

Published on April 29, 2014
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