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Ceramic tiles market heads for 13% CAGR in 2018-23

Saudi Arabia+Mexico main export destinations

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Saudi Arabia+Mexico main export destinations

Kejaria Ceramics

 

The Indian ceramic tiles market is expected to reach Rs.501.7 billion by the end of 2023, expanding at a compound annual growth rate (CAGR) of 13%.

Forecasting this in a report, ResearchAndMarkets said the ceramic tile market was Rs.250 billion in 2017 in the country.

In terms of volume, India had manufactured ceramic tiles that could cover an area of 1.08 billion sq. mts. in 2017.

The “Ceramic Tiles Market in India (2018-2023)” report was release on 21 Mar 2019.

On 17 November 2017, tax rates were revised from ~28% to ~18%, which led to a decrease in the cost of finished ceramic tiles products. The decrease in price has led to an increase in the sales of the product thereby leading to the overall growth of the industry.

The organized sector consisting of 16 major players, accounts for ~40% of the Indian tile industry while the remaining 60% is unorganized, according to the ResearchAndMarkets report.

The residential sector dominates the demand generated for ceramic tiles in India with 70% market share, while the rest of the order comes from the commercial and replacement sectors.

Export-Import

Saudi Arabia followed by Mexico were the two largest export destination for the ceramic tiles in 2013-17.

India imports ceramic tiles, both value and volume-wise, from countries like Italy, China and Spain.

Increased spending on infrastructure by the Indian Government, coupled with rapid urbanization is promoting the demand for residential and commercial buildings.

Growing space requirements from various sectors like healthcare, education and IT is making real estate a profitable industry for the ceramic tiles manufacturers of India.

Apart from new projects, the demand for ceramic tiles has increased from projects related to the replacement of tiles in residential and commercial construction. The replacement market is expected to witness a strong growth in the coming year, thus driving the growth of the ceramic tiles market of India, said the report.

Domestic ceramic tiles manufacturers face challenges due to the rise in the cost of production, which, in turn, hampers the profit margin of the manufacturers.

An appreciation of the dollar against the rupee has increased the price of compressed natural gas (CNG) which constitutes 30% of the input cost for manufacturing ceramic tiles, hence increasing the total cost of production, according to the report.

The leading manufacturers are: Euro Ceramics Limited, H & R Johnson (India) Limited, Kajaria Ceramics Limited, Nitco Limited, Orient Bell Limited, Varmora Granito Private Limited, RAK Ceramics India Private Limited, Somany Ceramics Limited and Murudeshwar Ceramics Limited. fiinews.com

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