The tile industry is responsible for supplying tile products from large stone bathroom tiles to wall tiles but since the ban announced by the National Green Tribunal regarding ceramic units that is powered by on coal gasifiers, many of the tile manufacturers based in Morbi, Gujarat have closed down their shops. This single incident is a major blow to the local tiles industry.
Many of the manufacturers decided to shut down because they are affected by the said ban. The only alternative for them is to use natural gas instead. The problem is that once they switch, the cost of fuel will be higher by looking at the current PNG prices in the market.
There are those who are hoping that this announcement will bridge the gap of branded tile makers – CeraSanitaryware, Kajaria Ceramics, Asian Granito and SomanyCermics – and the unorganized manufacturers based in Morbi. The goal is that the former will be able to have their market share.
Reports from the media revealed that 800 ceramic units were forced to stop operation. These units came from more than 400 wall tile facilities that are mainly relying on coal gasifiers. The shutdown is due to the lack of raw materials that affects the operation costs for the said units.
The ceramic industry in Morbi, however, was predicted to have a boom. The industry has already announced that there are already plans underway for 50 new manufacturers of wall tiles. These all changed because of the ban which was announced on the 6th of March. The production has went down between 60 and 70 per cent since then.
India is currently the third largest manufacturer of ceramic products all over the planet. In the entire country, Gujarat is responsible for 70 per cent of the supply of ceramic sector. The new regulations do not only affect small tile shops but also the large ceramic players.
Currently, the ceramic industry which produces large stone bathroom tiles is divided into two categories, the unorganized manufacturers and the organized ones which is a bigger part of the two.