EXPORT PROSPECTS OF CERAMIC

Transcription

1 1 EXPORT PROSPECTS OF CERAMIC & CERAMIC BASED PRODUCTS C eramics refers to a group of products which are made by a process of heating. In the recent past ceramics included only the pottery items. With the passage of time, ceramics have emerged as one of the leading industries in India. Today, the industry produces a wide range of products by using an assortment of raw materials like clay, porcelain, bone china, silica, etc. These products inter alia include ceramic tiles, mosaic tiles, wall tiles, sanitary wares like wash basins, sinks, closets, urinals, bathing tubs, etc, crockery, electrical ceramic capacitors, transformer bushings, lightening arrestor shells, sewer pipes, and ornamental ceramics such as beads, etc. The ceramic industry in India is mainly concentrated at Khurja (Uttar Pradesh) for pottery products and Morbi (Gujarat) for a variety of ceramic products. The other states where most of the ceramic units are located comprise: Kerala and Rajasthan. The industry is mainly dominated by ceramic tiles. The top four tile manufacturing companies: SPL, Kajaria, Regency and H&R Johnson reportedly account for about 30 per cent of the total tile industry s turnover of Rs. 4,000 crore. Presently, there are about 12 companies, each having more than Rs. 50 crore turnover, while the rest of

2 2 the sector comprises of small players of around 200 manufacturers each having turnover in the range of Rs10-12 crore. The tile industry currently employs around 10, 000 workers directly and 25,000 indirectly. The Indian tile industry in the recent years has witnessed a rapid growth owing to various factors like technical advancement and infrastructure development. Innovative and superior quality products are now the forte of the industry. A classic example is the introduction of vitrified tiles in the market. Vitrified tiles are produced with high quality raw materials pressed at high pressure and fired at very high temperature to get a body sector that retain almost zero porosity of low water absorption rate. The ceramic market today is flooded with many brands of vitrified tiles. The various government bodies like Overseas Construction Council of India and the Chemicals and Allied Products Export Promotion Council (CAPXIL) under the Ministry of Commerce & Industry, Government of India over the years have been playing an important role to promote exports of ceramic products from the country. WORLD TRADE (i) World Imports: World imports of ceramic products in 2003 as may be seen from Table 1, registered a growth of per cent over the previous year when the same reached a level of US$54,791.7 million as against US$47,070.7 million. The segment Sanitary, plumbing, heating, lighting fixtures and fittings, continue to be the major sector accounting for a share of per cent in 2003 followed by Clay and refractory construction materials (18.06%), Floor coverings etc (17.47%), and Pottery (11.61%). The leading importing countries accounting for a major share in the import of ceramic products in 2003 comprised: USA, Germany, UK, France, China Hong Kong SAR, Japan, and Canada.

3 3 TABLE 1 WORLD IMPORT OF CERAMIC AND CERAMIC BASED PRODUCTS BY MAJOR COUNTRIES SITC Code Item %change in 2003 over Sanitary, plumbing, heating, lighting fixtures and fittings 662 Clay and refractory construction materials 659 Floor coverings etc 21,621.8 (45.93) 11,143.2 (23.67) 8,598.6 (18.27) 666 Pottery 5,707.1 (12.12) WORLD TOTAL 47,070.7 (100.00) 25,698.2 (46.90) 13,155.8 (24.01) 9,574.4 (17.47) 6,363.3 (11.61) 54,791.7 (100.00) (US$million) %shares of major importing countries in the year USA (23.84), Germany (8.59), UK (8.14), France (5.74), and China Hong Kong SAR(3.69) USA(15.49), France (8.21), Germany (7.42), UK (5.45), Belgium (2.82), and Canada (2.36), USA(19.04), UK (12.64), Germany (11.72, Japan (6.06), Canada (5.63), France (4.51), and Netherlands (2.99) USA(31.30), Germany (6.95), UK (5.92), France(5.05), China Hong Kong SAR(3.63) Note: All figures are for the year 2002 and Figures within brackets indicate percentage shares of the total. Source: Compiled from the data of United Nations, 2003 International Trade Statistics Yearbook, Volume II, Trade by Commodity, New York, 2004.

4 4 (ii) World Exports: World exports of ceramic products in 2003, as may be seen from Table 2, increased to US$52,026.7 million over US$44,580.5 million in the previous year, registering a growth of per cent. Segment wise analysis shows that the category Sanitary, plumbing, heating, lighting fixtures and fittings, continue to be the leading segment accounting for a major share of per cent in 2003 followed by Clay and refractory construction materials (25.21%), floor coverings etc. (19.19%), and pottery (10.79%). Highest growth during the period was witnessed in respect of the category Sanitary, plumbing, heating, lighting fixtures and fittings, (19.56%), followed by Clay and refractory construction materials (17.40%), floor coverings etc.(13.02%), and pottery (10.60%), Major exporting countries in 2003 comprised: China, Germany, Italy, China Hong Kong SAR, USA, Spain, France, Turkey, Belgium, Netherlands, India and Iran. India emerged as the fifth largest exporting country of floor coverings, etc in TABLE 2 WORLD EXPORT OF CERAMIC AND CERAMIC BASED PRODUCTS BY MAJOR COUNTRIES (US$million) SITC Code Item %change in 2003 over Sanitary, plumbing, heating, lighting fixtures and fittings 662 Clay and refractory construction materials 659 Floor coverings etc 19,503.1 (43.75) 11,170.8 (25.06) 8,831.9 (19.81) 666 Pottery 5,074.7 (11.38) WORLD TOTAL 44,580.5 (100.00) 23,317.8 (44.82) 13,114.3 (25.21) 9,981.8 (19.19) 5,612.8 (10.79) 52,026.7 (100.00) %shares of major importing countries in the year China (16.53), Germany (12.42), Italy (11.54), China Hong Kong SAR(5.54), and USA(4.92) Italy (30.18).Spain (18.00), Germany (9.73), China (6.91), France (4.17), and Turkey (2.64) Belgium(23.02), China (8.77), Netherlands (8.23), USA(7.34), India (7.30), Iran (6.69) and Germany (5.11) China(30.36), Germany (8.74), UK (7.33), Italy (5.06), China Hong Kong SAR(4.80),

5 5 Note: Figures within brackets indicate percentage shares of the total in 2002 and 2003 Source: Compiled from the data of United Nations, 2003 International Trade Statistics Yearbook, Volume II, Trade by Commodity, New York, RECENT DEVELOPMENTS Workshop on Pottery: A Workshop on pottery technology was held recently in New Delhi. It was attended by artisans from states like Gujarat, Uttar Pradesh, Bihar, Haryana and Delhi. The Workshop was organized by National Centre for Design and Product Development (NCDPD) under the Ministry of Textiles, Government of India. It mainly focused on educating the artisans about adoption of glazing technology which gives a distinct edge. The other objective of the Workshop was to reach to Indian artisans with international standards of creating a wide range of colours in making of pottery items using clay, stone or bone China with the help of world class glazing technology. Glaze technology has several benefits: stronger products can be made from it which is safe for keeping food and a wide range of colours can be used thus making the end product a value item. Dumping of Imported Tiles: According to Mr. Vijay Aggarwal, Chairman, Indian Council of Ceramic Tiles and Sanitary wares, many Chinese companies export their products from the Gulf and other SAARC countries to India. For instance, Nanhai Shanyun Qulian Construction Ceramics, a Chinese firm, has been exempted from paying anti-dumping duty for exporting vitrified tiles to India through UAE-based company Prestige Trading. The exemption, he said, was granted on the ground that its cost of production is market-oriented. He further added that though the Government of India has imposed an anti-dumping duty of Rs. 35 per square ft on import of Chinese tiles (which is applicable till 2007), there is urgent need to check dumping through SAARC and Gulf countries.

6 6 Exim Study on Ceramic Industry: A recent study entitled Indian Ceramic Industry: Perspective and Export Potential by the Export-Import Bank of India provides an analysis on India s export opportunities for select ceramic products, namely, unglazed ceramic tiles, glazed tiles, ceramic household articles and ornamental ceramic products. The study makes an analysis of the price competitiveness of Indian products in different markets which include the leading importers of ceramic products as well as the major export markets for India. The study also identifies thrust markets for India where focus should be given to enhance export from the country. Besides, the study focuses on various problems faced by the ceramic industry. Business Portal: The Chemicals and Allied Products Export Promotion Council (CAPEXIL), a premier export promotion council in India under the Ministry of Commerce, Government of India has developed a business portal (capexiltrade.com) to promote exports of major chemicals and allied products including ceramic products. Those desirous of getting up-to-date information about the ceramic industry may assess its above-stated website. INDIA S EXPORTS India s Exports---Segment wise: India s exports of ceramic and ceramic based products in , as may be seen from Table 3 went up to Rs crore as against Rs crore in the previous, registering a negative growth of 3.12 per cent. Electrical insulators of ceramic during the period emerged as the largest segment of export, registering a growth of per cent over the previous year when its exports touched a figure of Rs crore as against Rs crore. The other segments registering a steep growth during the period comprised: Ceramic wares for laboratory etc; ceramic troughs tubes etc, for use in agricultural ceramic pots etc. for conveyance/packing of goods (288.78%), followed by Unglazed ceramic flags & paving hearth/wall tiles; unglazed ceramic mosaic cubes and the like (268.27), Bricks, blocks etc. of siliceous fossil (54.63%), other ceramic articles (35.89%), and Ceramic sinks, wash basins & similar sanitary fixtures (25.15%). On the other, the segments witnessing a negative growth during the period constituted: Glazed ceramic flags & paving hearth/wall tiles, glazed ceramic mosaic cubes & like (38.14%), followed by Refractory bricks, blocks, etc. excluding goods of siliceous fossil meals/siliceous earths (29.81%), Tableware, kitchenware etc. of

7 7 porcelain/china (26.49%), Ceramic tableware, kitchenware, other household articles etc. other than porcelain or china (33.31%), and Ceramic building bricks, flooring blocks, support/filler ties and the like (25%). HS Code TABLE 3 CATEGORYWISE INDIA S EXPORTS OF CERAMIC PRODUCTS (Rs. crore) Item %change in over Electrical insulators of ceramics Glazed ceramic flags & paving hearth/wall tiles, glazed ceramic mosaic cubes & like (-) Ceramic sinks, wash basins & similar sanitary fixtures 6903 Other refractory ceramic goods excluding goods of siliceous fossil meals/similar siliceous earths (-)29.81 Refractory bricks, blocks, etc. excluding goods of siliceous fossil meals/siliceous earths 6911 Tableware, kitchenware etc. of (-)26.49 porcelain/china 6907 Unglazed ceramic flags & paving hearth/wall tiles; unglazed ceramic mosaic cubes and the like 6912 Ceramic tableware, kitchenware, other (-)33.31 household articles etc. other than porcelain or china 6914 Other ceramic articles Ceramic wares for laboratory etc; ceramic troughs tubes etc, for use in agricultural ceramic pots etc. for conveyance/ packing of goods 6901 Bricks, blocks etc of siliceous fossil Roofing tiles, chimney pots, architectural & other ceramic constructional goods 6906 Ceramic pipes, conduits, guttering (-)1.96 & pipe fitting 6904 Ceramic building bricks, flooring (-)25.00 blocks, support/filler ties and the like 6913 Statuettes & other ornamental ceramic articles TOTAL (ALL INDIA) (-)3.12

8 8 Source: Compiled from the data of DGCI&S, Monthly Statistics of India Foreign Trade, Exports & Re-Exports, March 2004 and 2005 issues, Kolkata. All figures are of the years and (ii) India s Exports---Country wise: Country wise analysis during the period and , as may be seen from Table 4, shows that UAE continues to be the largest market for Indian ceramic and ceramic based products in Exports to this market registered a growth of per cent over the previous year when the same reached a level of Rs crore as against Rs crore in the previous year. The other country registering a steep growth during the period included USA (33.94%). Besides, Indonesia and Germany witnessed a growth of 7.87 per cent and 7.84 per cent respectively. On the other, the countries showing a steep decline during the period comprised: Australia (49.01%), Saudi Arabia (33.11%), UK (32.24%), Kuwait (21.66%), Sri Lanka (19.09%), and South Africa (18.06%). TABLE 4 INDIA S EXPORTS OF CERAMIC PRODUCTS TO MAJOR MARKETS (Rs. crore) Country %change in over UAE UK (-)32.24 Saudi Arabia (-)33.11 Indonesia Germany USA Sri Lanka (-)19.09 Nepal (-)9.66 Qatar (-)0.07 Italy (-)5.41 South Africa (-)18.06 Kuwait (-)21.66 Australia (-)49.01 TOTAL (ALL INDIA) (-)3.12

9 9 Source: Compiled from the data of DGCI&S, Monthly Statistics of India Foreign Trade, Exports & Re-Exports, March 2004 and 2005 issues, Kolkata. All figures are for the years and Segment wise India s exports of major ceramic and ceramic based products to important markets in and and export of major ceramic and ceramic based products in and in the select markets appear at Annexure I and II. EXPORT PROSPECTS Studying export potential of ceramic products from India, a recent study Indian Ceramic Industry: Perspective and Export Potential conducted by the Export-Import Bank of India, states that export potential of Indian ceramic sector is not fully tapped considering its size, diversity and price competitiveness. The Study is of the view that it is time to make a conscious effort to increase export of select ceramic products by identifying potential markets. The future outlook of the industry, it says, seems quite positive because of the thrust given by the Indian ceramic industry on advanced ceramics which offer tremendous potential in the global markets. These products find applications in electronics, automotive and aerospace industries. The global market for advanced ceramics is growing and countries like Japan and USA dominate this segment. For getting more details about the ceramic industry in India, assess website of Export-Import Bank of India at:

10 10 ANNEXURE I INDIA S EXPORTS OF MAJOR CERAMIC PRODUCTS TO IMPORTANT MARKETS IN AND (Rs. crore) HS Code Item/country %change in over Other sanitary fixtures (excluding porcelain) UAE Saudi Arabia Sri Lanka (-)13.16 Nepal USA South Africa Kuwait Ghana Yemen Nigeria (-)47.95 Ivory Coast Cameroon Israel (-)5.88 Bahrain Canada Total (incl. others) Other low tension porcelain insulators Indonesia Germany Italy Ghana Bangladesh (-)56.47 Total (incl. others) Porcelain discs & strings>= 6.6 KV Saudi Arabia USA Germany HS Code Item/country %change in over Bahrain Sweden (-)25.79 Bangladesh

11 11 UAE Afghanistan Iran Kuwait Total (incl. others) Porcelains discs & strings below 6.6KV Sweden Italy (-)13.55 USA Germany Iran UAE Turkey Total (incl. others) Tableware of bone china & soft porcelain UK (-)37.71 Germany USA Italy Kuwait neg Netherland Total (incl. others) Ceramic mosaic tiles UAE (-)26.87 Sri Lanka (-)15.41 Nepal ` (-)42.05 Saudi Arabia (-)25.90 Total (incl. others) (-) Sanitary fixtures of porcelain/china UAE Saudi Arabia HS Code Item/country %change in over Sri Lanka Total (incl others) Glazed ceramic mosaic tiles UAE (-)39.19 Sri Lanka (-)42.15 Nepal (-)22.09 Qatar (-)15.11 Total (incl others) (-) Glazed Ceramic mosaic

12 12 cubes Iran UAE (-)53.53 Australia (-)9.52 Total (inc others) (-)9.65 TOTAL (ALL INDIA) (-)3.12 Source: Compiled from the data of DGCI&S, Monthly Statistics of India Foreign Trade, Exports & Re-Exports, March 2004 and 2005 issues, Kolkata. ANNEXURE II INDIA S EXPORTS OF IMPORTANT CERAMIC PRODUCTS IN THE MAJOR MARKETS IN AND (Rs. crore) HS Code Item %change in over UAE Other sanitary fixtures(excluding porcelain) Other glazed ceramic mosaic tiles Vitrified tiles, whether polished or not Glazed ceramic mosaic tiles (-) Toilet articles of porcelain china Bricks and shapes, high alumna Ceramic mosaic tiles (-) Other household and toilet ,98 articles of porcelain Ceramic mosaic cubes Tiles other than vitrified tiles Glazed ceramic mosaic cubes (-)53.53 Total (incl. others) ,83 UK Tableware of bone china and soft porcelain Other sanitary fixtures (excluding porcelain) Tableware of other bone china and soft porcelain Ceramic troughs, tubs, pots, jars and the like (-) (-)

13 Other household and toilet articles of porcelain Fire clay bricks and shapes Kitchenware of bone china and soft porcelain (-)13.37 HS Code Item %change in over Other glazed ceramic mosaic tiles Total (incl. others) (-)32.24 SAUDI ARABIA Other sanitary fixtures (excluding porcelain) Porcelain discs & strings >=6.6kv Other glazed ceramic tiles (-) Sanitary fixtures of porcelain/china Bricks and shapes, high alumina Glazed Ceramic mosaic tiles (-) Other insulators of ceramic (-)34.84 Total (incl others) (-)33.11 INDONESIA Other insulators of ceramic Magnesite bricks and shapes Silica bricks and shapes Fire cay bricks and shapes Total (incl others) GERMANY Other refractory ceramic goods Other insulators of ceramic Other refractory ceramic goods (-) Zircon/zircon-mullite refractories Porcelain discs & strings >=6.6kv Porcelain discs & strings below kv Tableware of bone china and soft porcelain Total (incl others) USA Porcelain discs and strings >= kv Porcelain discs and strings below

14 kv HS Code Item %change in over Zircon/zircon-mullite refractories Other high tension porcelain solid core insulators Other glazed ceramic goods Statuettes of porcelain/china Other ceramic articles excluding (-)7.55 porcelain/china Tableware of bone china and soft porcelain Glazed ceramic mosaic cubes Bricks and shapes, high alumna (-) Porcelain post insulators above kv to 132kv Total (incl. others) SRI LANKA Other sanitary fixtures ( (-)13.16 excluding porcelain) Other ceramic goods Glazed ceramic mosaic tiles (-) Other glazed ceramic cubes and (-)37.76 tiles Ceramic mosaic tiles (-) Sanitary fixtures of porceain/china Total (incl. others) (-)19.09 TOTAL (ALL INDIA) (-)3.12 Source: Compiled from the data of DGCI&S, Monthly Statistics of India Foreign Trade, Exports & Re-Exports, March 2004 and 2005 issues, Kolkata. G.P. Gandhi Quarter No. 1129, Sector - 12, R.K. Puram, New Delhi Note: The author has used various sources in the preparation of this article. For further details please contact him.