Crisil SME Tracker: Ceramic tile makers may face double whammy

NGT order is expected to reduce the exports of SME tile manufacturers, leading to a fall in sales volume by two to four per cent in the current fiscal

In March 2019, the National Green Tribunal (NGT) ordered shut all ceramic tile manufacturing units (the industry size is Rs 33,000-34,000 crore, with SMEs holding a 55 per cent share) using coal gasifiers in the Morbi cluster of Gujarat, which accounts for 85 per cent of ceramic tiles produced in India.

SMEs, which account for two-thirds of domestic ceramic tiles production, have been severely impacted by the order which, in the event of any anti-dumping duties imposed by the Gulf nations (investigations have already been announced), will act like a double whammy. 

Most of them have shifted to piped natural