Morbi-based Ceramic Industry Hikes Price
Add to that, labour cost, raw materials and transportation costs also increased gradually. “Our overall production costs have increased by 17 – 20 % in past few months as gas prices, raw materials and transportation costs increased. We could only reduce such an impact by hiking our product prices by INR 5–15 per box which amounts to around 12 %”, said MP Shorya, Secretary of Morbi-Dhuva Glaze Tiles Association. The last time the ceramic industry in Morbi had hiked product prices was in November 2011, which was by 7 – 10 %. “Due to slowdown in the realty sector, demand for ceramics has declined by more than 50 % since last one month”, said Tulsi Patel, President of Morbi-Dhuva Glaze Tiles Association. As against a production capacity of 2,2 million boxes/d, Morbi currently produces 1,2– 1,5 million boxes a day wherein demand has dropped by 1 million boxes. In India there are about 750 ceramic products manufacturers, out of which more than 500 units are located in the Morbi area of Gujarat. The total turnover of the Indian ceramic industry is about INR 100 000 million wherein Gujarat contributes about INR 70 000 –80 000 million to it. The industry gives direct and indirect employment to the over 600 000 people across India.