Export surge of ceramic tiles from Morbi continues unabated and if the present trend is any indication, ceramics tiles may be the only sector where the export performance of FY 21 may well match (or even surpass) previous year figures. Remember, this performance is being achieved when the whole of world economy is struggling to come out of the clutches of COVID-19.
According to the information available from the industry, ceramic tiles exports from Morbi has crossed Rs 1,000 crore in November and its the fourth consecutive month where exports exceeded Rs 1,000 crore. Exports for the August-November period has crossed Rs 4,600 crore mark and the trend suggests that exports may cross Rs 10,000 crore mark before the financial year ends. This record breaking performance has overshadowed some of the recent concerns of the industry on cost and logistics front.
COVID-19 outbreak and subsequent disruption in supply chain have forced many buyers in Europe and America to follow China+1 policy which in-turn has helped our tiles industry to a great extent as India is the second largest manufacturer of tiles in the world. Also, in order to lure the new customers Indian exporters are offering better credit period options in the international market than others. Another factor that is going in favour of Indian manufacturers is the variety of designs provided by them when compared to Chinese players as the latter are more focussed on volume rather than innovation. For example, Indian players can provide 20 designs in one container whereas Chinese players provide 2 designs in one container for exports.
However, domestic users of tiles who were expecting fall in prices of tiles in the domestic market are disappointed as the increased export opportunities have helped the domestic market to maintain pricing discipline locally.