The Indian tile industry
Ceramic tiles are integral to home improvement. The Indian tile industry, despite an overall economic
slowdown, continues to grow at about 11% in 2013-14. Ceramic tiles are primarily hygiene products,
evident from their varied use in bathrooms and kitchens in most Indian households to medical centres,
labs, milk booths, schools, public convenience spaces, shopping malls and other centres.
Sectoral shifts
Shift in flooring solutions:
While the Indian tile
industry was historically dominated by ceramic
floor tiles, there is now an increasing shift
towards vitrified flooring solutions in view of
their strength and low water absorption.
Unorganised players being organised:
Growing
disposable incomes have enhanced a preference
for branded products. Unorganised players lack
marketing expertise; they do not possess the
resources to create large brands. As a result, they
find it easier to partner organised players owning
brands and distribution channels.
Imports become marginal:
Imports from China
are declining as domestic players have developed
the capability to manufacture quality and cost-
efficient products. Chinese manufacturing costs
have increased and the Indian currency has
weakened.
Outlook
The spread of roads, telephones and electricity
is helping urban centres extend, creating new
population clusters – the number of ‘census
towns’ in 2011 was 3x that in 2001, resulting in
the emergence of significant housing demand
from non-metro locations (smaller urban centres,
Tier-II and III towns).
Indian tile sector snapshot
Tile volume growth
CY 2008
CY 2009
CY 2010
CY 2011
CY 2012
Consumption (MSM)
403
494
557
625
681
Y-o-Y growth (%)
2
23
13
12
9
Source: Ceramic World Review
Increasing usage of tiles
Percentage of households by material of floor
India
Rural
Urban
Material
1991
2001
2011
2001
2011
2001
2011
Mud
67.0
57.1
46.5
72.3
62.6
18.0
12.2
Stone
–
5.8
8.1
4.5
6.2
9.1
12.2
Cement
21.3
26.5
31.1
18.0
24.2
48.3
45.8
Mosaic / floor tiles
3.8
7.3
10.8
2.2
3.7
20.5
25.9
Others
7.9
3.3
3.5
3.0
3.2
4.1
3.8
Source: Census 2011
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Kajaria Ceramics Limited
