May 2019

Revival of the organized tiles players?

By DEEPAK AGARWAL

As NGT passed the law on 18th March 2019, Morbi has witnessed plant shut down in more than 250 units as of date.

• Shutdown in Morbi, resulting in inventory clearing off and healthy price environment. In April, Morbi players have started pushing their inventory on account of expected price hike in ceramic tile.
• Morbi players have increased prices by 1-5% after NGT order.
• Kajaria, a market leader in tiles have increased their product prices by 4-5% in the south and west of India (further price hike of c.5% in May-june’19)
• Another Somany ceramics have increased their prices by 1% in ceramic and 5% in vitrified tiles w.e.f 1st April’19
• Demand: In Northern side, demand is arising from commercial and residential construction and Bangalore a major market of the south is seeing demand from replacement from renovation and repair of residential projects front.
• Premium products (GVT & Double charge) witnessing high demand in domestic market and export market. Morbi players have started exporting large slabs to china.