Slowdown in realty sector hampering ceramic industry

Ceramic industry in India estimated to be around Euro 4,000 mn

The slowdown in real estate sector has had multiplying effects on growth of ceramic industry in Gujarat, which has reduced nearly 50 per cent, claimed industry sources.

The representatives of the ceramic industry are in Ahmedabad for the 9th Annual Ceramic materials, machinery, supplies and technology show - Indian Ceramics 2014.

“Growth has come down. The ceramic industry was growing at 10-12 per cent in 2011-12 but it has come down to 5-7 per cent at present,” managing director of VDMA (German Engineering Federation) Rajesh Nath told mediapersons.

“The housing sector was booming two years back. But slowdown in real estate over the last year and a half has really hampered growth in ceramic industry,” he said.    

The ceramic industry in India is estimated to be around Euro 4,000 million with the largest share being that of tile market comprising Euros 3,300 million. While sanitary ware, tableware, brick clay among other make up the rest of the industry.

The European ceramic market is currently weak because of economic crisis, deputy director of Messe Munchen International Gerhard Gerritzen said, adding that this has forced companies in European market to enter big Asian economies like India and China.

Gerritzen said that the ceramic industry is still waiting for investments and they are expecting companies to invest in new technologies and new machineries after the general elections in India.

He, however, said that the market situation is much better today than it was six months back.

A stable government, he said, and clear business rules and regulations will provide a sustainable atmosphere for business to flourish.