With the demand for ceramic products rising from rural areas and smaller cities, Morbi-based ceramic industry is getting back to normalcy after the slowdown had impacted the sector in recent times. According to industry sources ceramic sector is now almost out of danger and several units which had feared closure might regain their lost lustre.

"Impact of slow down is now almost stable and no further damage is seen in current scenario as demand is increasing from rural areas and small cities across India. However, we will have to play the wait and watch game for sometime as far as exports are concerned. During the year, growth rate of industry had come down from 30-40 percent to 10 per cent. But the position is pretty good after third quarter of 2008-09," said Girish Pethapara, managing director of Decolight Ceramics Ltd.

Turnover of Morbi ceramic industry is touched Rs.4000 crore in the year 2008-09 as compared to Rs 4,000-4,500 crore for 2007-08. The industry offers more than 60,000 direct and indirect employments.

"The sector is dependent on real estate. The slowdown in realty sector had badly affected the ceramic industry in Morbi as well. But now situation is under control. Last year more than 40 per cent units were closed and rest were not working full force. At present almost all units are in working condition at 80 to 90 per cent capacity," said Veljibhai Patel, president of Morbi Ceramic Tiles Manufacturing Association.

According to Pethapara, recession is not only issue for the panic. Internal competition, value added tax (VAT) and high gas price had also been hurting the business most.

With the Gujarat State Petroleum Corporation Ltd. (GSPC) being the only supplier of industrial gas to Morbi, the industry had requested Gujarat government to reduce gas prices and the government had assured to do so. The industry is now anticipating a price cut after April 15, 2009.

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