Ceramic tile sector to maintain growth
The ceramic tile industry, which has recorded phenomenal growth through value-added products and geographical reach, has the potential to maintain its momentum in the medium term.
Despite slowdown in the real estate sector and adverse macroeconomic environment, low per capita consumption of tiles in the country, rapid urbanisation, increasing disposable income of nuclear families, untapped rural market and stable replacement demand is envisaged to augur well for the sector, Care Ratings said.
The government’s decision in March 2016 to impose anti-dumping duty of USD 1.37 per square metre (SQM) on all vitrified tiles imported from China is also expected to provide level playing field to the domestic players, especially in South India.
Till 2013, there was anti-dumping duty on Chinese vitrified tiles. However, after the removal of duty by the government, Chinese companies dumped tiles in India which exerted pressure on domestic manufacturers on account of lower freight rates from China to South India, it said.