Date:19/11/2007 URL: http://www.thehindubusinessline.com/2007/11/19/stories/2007111951600100.htm

Back Indian tile exporters hope to fill China gap

S. Shanker

Mumbai, Nov. 18 The withdrawal of the 20-per cent export incentive by China for tile makers has the potential to open up new export opportunities for India, according to Euro Ceramics, a player in the tile industry.

Domestic tile makers are now planning to tap the Rs 300-crore export market the Chinese had under their belt.

Euro Ceramics is set to double its exports to Rs 26 crore this year compared with last year’s Rs 13 crore, which was about eight per cent of its production, said Mr Paresh Shah, Director.

He added that the Chinese products were no longer competitive in the export market.

The rupee appreciation has had little impact as most exporters import raw material for vitrified tiles. Euro Ceramics had recently increased its price by about five per cent.

High domestic demand

Exports have remained insignificant compared with the domestic sale. The domestic market is upwards of Rs 6,000 crore, almost equally divided between the organised and the unorganised sectors, he said.

Tile makers bank on the tremendous demand from the residential segment. There is a strong preference for marble as flooring medium in commercial spaces, due to its aesthetic appeal.

Euro Ceramics, a vitrified tile producer, has kick-started a marble unit to service the demand.

In terms of price, vitrified tiles range between Rs 400- 700 per sq metre, while ceramic costs Rs 150-225 per sq metre. With building cost escalating, the tile component now forms just 0.3 per cent of the construction cost. It was about one per cent earlier, says Mr Shah.

Meanwhile, tile makers’ stocks on the BSE showed a mixed trend. Euro Ceramics stock on BSE gained 6.24 per cent to Rs 207 over the week, while Murudeshwar Ceramics gained 7.37 per cent to Rs 116.60 during the period. Nitco Tiles Ltd lost 3.34 per cent to Rs 300.60 on Friday.