Morbi Tiles

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Another setback for Morbi’s export sales

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Update [10th August 2020]: Despite many worrying views about the anti-dumping and future outlooks before it was enforced, we have heard from authoritative experts that exports to Saudi and other GCC markets are still not reduced much. The anti-dumping measures were imposed on 6th June. In spite of that during June 2020 the tiles exports from Morbi to only Saudi Arabia crossed 2.47 million square meters. It converts to approx 1600 containers!

Manoj Ughareja from Velsaa Vitrified LLP and Ashok Patel from Veritaas Granito have views that there is not much effect of the anti-dumping measure as it was anticipated earlier.

In the midst of paranoia created by the Covid-19 situation, there is another blow to Morbi’s flourishing ceramic tiles industry.

This time the news is from GCC (Gulf Co-operation Council), it is the largest export market for Indian tiles. So far so that many factories in Morbi were erected only considering the major chunk of GCC as a key export market for their tiles.

(FYI: GCC member countries are Saudi Arabia, Kuwait, Oman, Qatar, Bahrain, and UAE)

…and it is fact. We have analyzed the export figures (ex-Mundra port) between April 2019 to January 2020 and found that GCC markets stand at # 1 position with consumption of 38% Indian tile exports (see below pie-chart).

Marketshare of Morbi’s ceramic tiles to world over

We have also seen project reports of a few wall tiles factories (which they submit to avail bank loans). In such reports, they used to mention exports to Saudi Arabia as their 50% sales.

So much reliance on the single market has given a hard blow to many ceramic wall tiles factories in April 2020, when GCC market adopted 41.2% anti-dumping duty on 196 Morbi based tiles factories and whopping 106% on ALL other Indian factories (as well as exporters… see the table in the FAQ section below).

We have covered some important questions related to this anti-dumping measure by GCC.

Rate of dumping duty on CIF value (%)Indian originChinese origin
Non sampling cooperating companies41.20% (196 Indian companies fall in this category)23.5% (89 Chinese companies fall in this category)
ALL other companies106%76%

Opportunity to participate in B2B Event & Trade Delegation to Brazil & Mexico (by CAPEXIL under MAI Plan with Highly Subsidized Rate & Airfare Grant)

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Note: Below is an event notification sent by Capexil

Warm Greetings from CAPEXIL – India’s Premier International Trade Facilitation & Export Promotion Council under the Ministry of Commerce & Industry, Govt. of India.

As you appreciate that the Latin America & NAFTA Region especially Brazil &Mexico are the most significant trading partners for India, with immense export potential for Indian Manufacturers & Exporters. However, it has been hugely underutilized & the Indian Entrepreneurs are still to tap& explore these regions to the utmost level. In recent years, India’s total trade with this region has increased substantially especially with Brazil & Mexico being top two leading economies in this region but there is still long way to go and a lot to achieve as Brazil is the 8th Largest Economy in the world followed by Mexico as one of the Top Economies of NAFTA Region.

To strive further on this path, CAPEXIL intends to organize very exclusive B2B Events (Buyer Seller Meets) along with series of Importers’ Outreach Programs, Business Networking Sessions at Sao Paulo (Brazil) and Mexico City (Mexico) during first week of December, 2018. This event is specifically planned and will be executed between Indian Exporters & Latin American Importers – Distributors – Stockiest as well as relevant Industry Associations – Chambers in Brazil & Mexico in order to promote Indian Exports of Building & Construction Materials, Home Décor & Furnishing Products (including Granite, Marble, Natural Stones, Ceramic Products, Sanitary Ware, Bathroom Fittings, All kinds of Tiles, Paints, Varnish & Allied Products, Glass & Glassware, Plywood & Wood Products, Cement & Clinker Products etc.), All types of Rubber Manufactured Products (Non Tyres& Tyres Sectors), Minerals & Mining Products, Books – Publications – Printing & Paper Products etc.

Brazil & Mexico hold immense business opportunities for India as per the below EXIM Data which itself proves the great potential of these markets & prospect for Indian Exporting Community of above mentioned CAPEXIL Products.

Brazil and Mexico’s Import of CAPEXIL’s Product from World

 Calendar Year

(Value in USD Thousand)

2017

BRAZIL

99,179,566
MEXICO

258,126,577

India’s Export of CAPEXIL’s Product to Brazil & Mexico as per Calendar Year:

 Financial Year

(Value in USD Thousand)

2017

India’s Export to BRAZIL

2,873,127
India’s Export to MEXICO

3,700,188

In order to achieve maximum mileage from the said event, CAPEXIL plans to organize series of Buyer Seller Meets(B2B Events) coupled with Business Networking Sessions, Importers’ Outreach Programs, Field Visits & Follow Ups to convert the entire exercise into comprehensive business proposition for our member participants.

:PARTICIPATION FEES:

Highly Subsidised Participation Charges under MAI Scheme of Govt. of India especially for the benefit of MSME & SSI Exporters: Rs.1,40,000/-per member firm (Rs. One Lac Forty Thousand only)which includes…

  • Participation in all the B2B Events (Buyer Seller Meets) / Business Networking Sessions / Importers’ Outreach Programs as well as Field / Clients’ Visits (if feasible & planned)
  • Company Profile in CAPEXIL’s prestigious Colourful Brochure to be distributed for desired exposure
  • Hotel – 5 nights for 1 person per company on Twin Sharing in both the countries
  • Refreshment & Lunch during B2B Events / Buyer Seller Meets
  • Airports & Venue Transfers in Group

In case of the additional second person / official participating & traveling from the same company, the Participation Fees per Company would be Rs. 1,80,000/- (Rupees One Lac Eighty Thousand only)

In case if you are not interested to avail Hotel as well as Group Transfers for Airport & B2B Venues etc., you may participate @ Rs. 90,000/- (Rupees Ninety Thousand only) per company for 1 Person and for additional second person (if any), the Participation Fees would be Rs. 1,00,000/- (Rupees One Lac only) per company.

:IMPORTANT NOTES:

  • In addition to above, Reimbursement of Air Travel (Partial or Full for One Person from One Company in Economy Excursion Class) may be provided to the eligible member exporters subject to approval of the MOC&I& subject to maximum ceiling of Rs. 1.00 Lac for 1 person per company on compliance of all requirements & documentation as per MAI Guidelines & requirement of Accounts & Finance Dept. of the Council.
  • To avail subsidy of Rs.1.00 lac, apart from other conditions of MAI Guidelines please note i) Members of CAPEXIL with exports upto F.O.B. value of Rs.30 crores in preceding financial year. ii) Members to have completed 12 months of membership and is regularly filling returns with CAPEXIL iii) Permissible only to the regular Director / Partner / Proprietor of the company iv) Claim forms duly filled-in and completed in all respects must be submitted to CAPEXIL within 90 days of return to India. 
  • The Participation Fees as mentioned above is Non Refundable in case of cancellation by the Member Firm after applying for any reason / circumstances whatsoever including Medical Emergency or any other issue.

In case of Rejection of Visa of any of the delegate in spite of his/her submission of all the documents as per requirement in timely manner & following all the procedures / process in proper manner, the Council may refund maximum up to 75% of the payment / fees or less which the delegate has paid to the Council if we find the genuineness in the matter. However, it is solely at the discretion of the Council and the decision of the Council’s Management is full & final.

  • Only regular Director / Partner / Proprietor of the company are requested to participate in the said event to interact one to one with Overseas Importers in meaningful way to seal the possible business opportunities.

Please note: This offer is valid only till 16thJuly, 2018 (Monday)

In view of above, applications are invited from member exporters of the above products to actively participate. Kindly send your formal application, payment by Demand Draft / At Par Multicity Cheque / Bank RTGSin favour of CAPEXIL along with attached Registration Form duly filled, sealed & signed to enable us to confirm your participation on First Come First Serve Basis.

ALSO A SOFT COPY OF FORMAL APPLICATION FORM IN EXCEL FORMAT MUST BE SUBMITTED IN EXCEL FORMAT BY RETURN EMAIL TO VRCHITALIA@CAPEXIL.IN & ACCOUNTS@CAPEXIL.IN.

CAPEXIL BANK DETAIL FOR RTGS PAYMENT OF PARTICIPATION FEES:-

IFSC Code: IOBA0000585

Account with Bank: Indian Overseas Bank

Bank Address: 6 Royd Street, Kolkata 700016

Type of Account: SB

Account Number: SB A/C No. 058501000074371

Beneficiary Name: CAPEXIL

Address: 1/1 Wood Street, VanijyaBhavan, 3rd Floor, Kolkata 700016

Beneficiary’s contact no: 033-22891721/22/23 Fax: 033-22891724 E-mail: vrchitalia@capexil.in & accounts@capexil.in

For any further query or assistance required, pls. contact the below CAPEXIL Event Officials to assist you.

Shri V. R. Chitalia, Director, CAPEXIL Mumbai.

Mobile: +91 98203 78805,

Tel.: 022 2351 7178, 23523410/0084

Email: vrchitalia@capexil.in

 ShriKuntalGhosh, Ex. Officer, CAPEXIL Kolkata.

Mobile: +91 9674992355,

Tel.: 033 2289 1721/23/25

Email: accounts@capexil.in

Encl.: Registration / Application Form in Specific Format

Looking forward for your active participation & prompt confirmation.

Kind regards,

Sd/-

T. K. Bhattacharyya,

Executive Director,

CAPEXIL,

Kolkata

How 3200x1600mm size GVT slab have changed the perception about Indian tile industry?

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June 13, 2018, will be marked as an important milestone for the India tile industry. In the recent past, most of the advancements were so thin and at a minuscule level that they escaped the attention of key tile buyers world over.  But on this day a local factory called Lioli started production of the biggest GVT slab format i.e. 3200mm x 1600mm

Why is it so important? 

The company (Lioli) has a strategic advantage because this size 320x160cm is only possible with the mouldless press (by System’s LamGEA press)

The porcelain slabs of size up to 120x240cm are possible to make with a traditional hydraulic mould type press (mostly made by HLT company of China). The majority of factories that offer 80×160 or 120×120 cm size use hydraulic mould type press. Some factory (e.g. Cruso) also makes 1200x2400mm size with the same. It should be noted that those mould based press (from HLT) are still relevant and proven press used by most of the factories globally.

Why this size is important?

There are other big format GVT slabs in the Indian market since 2016. Then what makes this size so important? The reason is this format became a norm among kitchen fabricators in most developed markets. The kitchen fabricators cut this slab horizontally and make two countertops. The kitchens made with porcelain slabs are gaining more popularity because it has zero porosity (and thus more hygienic) and impeccable material. This product has the potential to replace natural marble with many advantages.

A whole piece of NATURAL marble in a very large format is rare, costly, and not available in slim format (e.g. 6mm). It is only possible to manufacturer such sizes in a factory.

Though this factory currently makes this size in 9 mm thickness we found they will be ready with 6mm thickness by end of July 2018. Such slabs at 6 mm thickness will be lightweight and can be used with polyurethane (as reinforcement material) between two layers of porcelain slabs and make a thick, strong but very light countertop.

Remember: special handling and fixing care is required if you are thinking to buy these slabs. See this video to know about it