The ceramic hub of Morbi-Than was on the verge of closure since the last quarter of 2008. But as of November 2009, as many as 45 new units have come up or are about to start production. Besides the strong domestic market, the withdrawal of various incentives by the Chinese government to its domestic industries has been a boost for the over 500-odd ceramic units here, which account for 60 per cent of India’s ceramic production.

Karshan Adroja, the president of Morbi Tiles Manufacturing Association, said, “Fuelled by domestic and international demands, the ceramic industry has been improving after a bad year.”

The subsidies by Beijing had put the Indian manufacturers in direct competition with their Chinese counterparts on the price factor in the international market. But now, the export figures since the beginning of the second quarter has touched a new high – it is more than double compared to last year.

“The opening of the real estate market has provided a solid domestic platform, and increasing exports — thanks to a weakening Chinese market — has expanded our overseas market,” Adroja said.

Shailesh Vasani, Managing Director of Itallica Floor Tiles in Morbi, added: “With China withdrawing various incentives and subsidies in fuel and raw material, the Indian manufactures have benefited a lot. Chinese goods had an edge in the sense that they were cheaper. But, now Indian products are giving them good competition.”

The export figures from Customs and Excise department speak by themselves. In May, the sanitary wares export touched the Rs 13.54 crore mark. The figure for July was above Rs 14 crore. In contrast, the corresponding figures for the previous year were Rs 6.50 crore and Rs 7.50 crore. Though in the August-September 2009 period, the export figure went down to Rs 9 crore, it is still Rs 3 crore more than the previous year’s figure.

... contd.