Vijay Aggarwal, Chairman, of ICCTAS, talks about the remarkable growth in the Indian ceramic tile industry and the business challenges by the brands and how the industry is going to perform in the future.
Indian ceramic industry has performed well in the past and is expected to grow in the next ten years in India because of the increase in the urbanization, construction market, replacement demand; government push for infrastructure development and many other factors that have demand for ceramic tiles set to soar.
Ceramic tiles are increasingly being adopted as a sustainable solution replacing natural stone and wood. Advancement in technology has opened new possibilities wherein large format tiles are used as slabs or thicker tiles are used for cladding. India has anticipated a significant expansion in the industry, presenting exciting opportunities to further solidify the market position.
The current market landscape presents several challenges that companies must navigate to ensure consistent growth. Some key challenges include high gas and freight costs, increasing competition, rapidly changing consumer preferences, evolving technology, and sustainability expectations. To overcome these challenges, companies must stay agile, invest in research and development, embrace innovation, foster strong customer relationships, and align with sustainable practices.
As far as business challenge is concerned, cost escalation primarily due to volatile gas price has a huge implication on profitability. The outlook for the tile industry’s financial performance in the next five years is highly promising. With a steady increase in construction activities, rising disposable incomes, and growing awareness of the importance of aesthetically appealing spaces, the demand is expected to witness substantial growth.
The Indian tile industry is expected to double in the next five to seven years in the backdrop of growth in the domestic market as well as the huge upsurge in exports. This, in turn, bodes well for the financial performance of companies in the industry.