India’s largest cluster of ceramic tile makers, Morbi is set to witness a flurry of new units, mainly for manufacturing wall tiles, thanks to growing demand in both domestic and international markets. As many as 50 new units, most of them wall tile making facilities, are going to be set up in 10 months. A fresh investment of up to Rs 1,500 crore is expected to be made for these units, say industry players.
The rush to set up new units in Morbi could be seen from the fact that over a dozen industrial entrepreneur’s memorandum (IEMs) have been filed with the department of industrial policy and promotion, under the Union ministry of commerce, in the last three months. All these IEMs are for establishing ceramic units in Morbi.
“At present, Morbi has 640 tile manufacturing units and 100 sanitaryware facilities. Of this, 400 are wall tile plants,” said sources aware of the situation.
In most of the cases, entrepreneurs have already purchased land and started constructing new plants. These units are being set up to cater to growing demand in export and domestic markets. Given the rise in demand, the new units will not lead to overcapacity, say market sources.
“The demand for wall tiles is growing at an annual rate of 20%. The new production capacity being added is also 20% of the current capacity,” said an industry player.
Currently operational wall tile units have a capacity to produce 1,056 million sq mt wall tiles per annul, while the new units are expected to have 247 million sq mt capacity.On an average, these new units are expected to bring in Rs 1,500 crore investments, which is mainly being made by the existing units owners.
According to the estimates provided by Morbi Ceramic Association , wall tiles account for 60-70% of total exports from Morbi. The ceramic tile cluster has seen a quantum jump in its exports to nearly Rs 12,000 crore in fiscal 2017-18, which stood at Rs 6,200 crore in 2016-17. The exports are growing 30-40% over the last few years and are expected to maintain the momentum, say industry players.