Morbi Tiles Factory
Morbi Tiles factory has decided to stop the factory for 1 month starting from August 10 to September 10. The Tiles dispatch will also be stopped from August 15 to September 15, 2022.
Morbi Ceramic Association has decided based on meetings with tile manufacturers to stop production and dispatch of tiles for 1 month. Starting in July 2022, there were multiple meetings arranged between various tile manufacturers such as wall tiles, floor tiles, double charge tiles, gvt tiles, parking tiles, and slab tiles for the planning of shutdown.
About 90 to 95 percent of morbi tiles factories have decided to stop production and dispatch of tiles for 1 month.
Nileshbhai Jetpariya, former president of Morbi Ceramic Association, said: “We have decided to go on a 1 month’s vacation from August 10, 2022, to balance demand and supply. Currently, we have excessive supply against demand as a result of which we are not able to increase the price which is eating up our profit.”
Haresh Bopaliya, president of Morbi Ceramic Association’s Wall Tiles Division, said: “About 95 percent of members agreed with the idea of a one-month vacation and now we are working out a mechanism to execute this plan. We have more than 50 percent stocks piling up and there is no space in the godowns to house any extra stock.’’
Why morbi tiles manufacturer decided to stop production and dispatch
There are various reasons to stop the tiles production and dispatch for 1 month to balance the Demand – Supply Ratio.
Fuel Price Increase– The major issue regarding the prices of the tiles is the increase in Natural gas fuel and Coal prices in the last few months. The gas and coal price has almost doubled and is the main factor affecting the prices of tiles.
Slower Demand – Due to low demand across Indian and International markets. The export market has slowdown over the last 6 months. The slowdown in the current ceramic industry is due to the lower demand in export markets and the rise in inflation in India.
Stock Godown– Stocks have increased in the tile factories by about 30 to 40 percent due to a slowdown. Domestic construction has slowed down over the last few months due to an increase in the prices of everything.
Raw Material Prices- The price of Raw materials has doubled due to the war situation over the last few months. The Input cost of raw material has been a major problem for morbi tiles manufacturers.
Hike in Freight and transportation
Current Scenario in Morbi Ceramic Industry
Morbi Ceramic Industry, the world’s second-largest ceramic hub is within shone a big problem in the last few months. The Morbi tiles industry has an annual turnover of Rs 55,000 Crore and exports over Rs 16,000 crore.
As the new year 2022 has begun, the Morbi Ceramic industry has witnessed a medium start. The Morbi economy is currently growing at a rapid rate as many different types of industries are present. International tile exports have also declined due to the pandemic across the world.
If this situation continues further then, many more tile factories will be forced to shut down. The main problem currently everyone is facing is liquidity.
Due to the liquidity problem in the market, tile manufacturers are forced to close their factories.
The morbi ceramic industry is currently on a path to tremendous growth. About 80 to 100 factories which have laid the foundation in 2021, now have started production. Many of these factories are manufacturing large slab tiles such as 800×1600 mm, 1200×1800 mm, and more.
The shutdown of tile factories will also be a big problem for tile workers’ employment.
It will also affect the industries linked with tiles such as packaging industries, raw material powders, digital ink factories, glaze powder, and many other industries. It will be a big problem for truck owners to adjust the fleet during the 1-month shutdown as the dispatch will be also closed.
The majority of the new tile factories are manufacturing glazed vitrified tiles and large porcelain slabs.
Currently, the major titles which are popular and in demand are 600×1200 mm GVT-PGVT Tiles. As the number of factories is increasing by 600×1200 mm tiles, this makes the supply of these tiles easy and on budget.
In January 2022, many new factories started producing glazed vitrified tiles. These factories have a greater production capacity than the previous duration. Previously the factories were producing 6000 to 8000 boxes per day. But now it has been increased to 12000 to 15000 boxes of 600×1200 mm gvt tiles.
The Morbi tiles factory is currently going through tough conditions due to various problems. About 600 to 650 tile factories are planning to shut down their factories for 1 month.
Tiles demand will increase after the 1-month gap. The money liquidity cycle will also be improved after the 1-month gap.
This is the first time in Morbi ceramic industry of 1 month vacation same as China ceramic industry having a vacation of 1 month every year.