Ceramic is an inorganic, non-metallic solid which may have a crystalline or partly crystalline structure, or may be amorphous.

Ceramic products are manufactured both in the large and small-scale sector with wide variation in type, size, quality and standard. India ranks 5th in the world in terms of production of ceramic tiles. The ceramics industry in India came into existence about a century ago and has matured over time to form an industrial base. From traditional pottery making, the industry has evolved to find its place in the market for sophisticated insulators, electronic and electrical items. Over the years, the industry has been modernizing through new innovations in product profile, quality and design to emerge as a modern, worldclass industry, ready to take on global competition. Ceramic products are divided into four sectors which includes Structural, including bricks, pipes, floor and roof tiles; Refractories, such as kiln linings, gas fire radiants, steel and glass making crucibles ; Whitewares, including tableware, wall tiles, pottery products, and sanitary ware ; Technical ceramics which classified into three distinct material categories of oxides, non-oxides and composite. A large and growing middle class population of more than 500 million people, a changing life style, better cost of living etc is growth drivers for this sector.With the growth in the housing sector the demand of ceramic is expected to increase. Indian tiles are competitive in the international market. These are exported to East and West Asian countries. By basic product variation, the tiles market has three component segments: mosaic, ceramic, and natural stones. Mosaic tiles claim a 50 to 60% share. The ceramic tiles and natural stones share the rest almost equally. Natural stones also have three segments: granites, marbles and other stones, including Kota stone. The ceramic tiles are available in at least three variations. They are floor tiles, wall tiles and vitrified tiles. These tiles are differentiated also by technology that is double firing (the older system) - roller/roller tunnel/tunnel and tunne1/roller; single firing (newer technology); and double face firing. Single firing is used for floor tiles while double firing continues to be used for wall tiles. Roller technology is more suitable for larger tiles and tunnel technology for smaller ones. The vitrified tiles are abrasion and acid resistant and do not absorb any moisture. They are suitable for places subject to heavy wear and tear like industrial and chemical plants, hotel lobbies, banks, special pavements. In India, the per capita consumption is as low as 0.05 sqm compared to 0.6 and 5 sqm in China and Europe, respectively. Rising disposable incomes of the growing middle class and 40 mn units of housing shortage, however, hold out a reassuring potential for the industry. Over the last two de-cades, the technical ceramics segment has recorded an impressive growth propelled by the demand for highalumina ceramics, cuttings tools and structural ceramics from the industry. Overall, the Indian ceramics industry has emerged as a major manufacturer and supplier in the global market. The industry is capital-intensive although there is a sizable presence of the informal sector operating on smaller capital inputs. With new technology and large economic size, capital costs are high. So are working capital requirements because of the need to store a wide variety of products and long credits. A major change which took over the ceramic tiles industry was the introduction of wall tiles for bathrooms and kitchens and for floors in offices and for decorative hangings. The Indian industry developed an

export market although at the lower-end. In volume, it constituted only about half-a-percent of the global market. The upper-end market is arrogated by Italy and Spain. The growth and demand for ceramic products has been further strengthened by the boom in the Indian real estate sector, which is registering 30 per cent growth per annum, for the last few years. The growth in the hospitality industry and the advent of new malls, commercial complexes and multiplexes also lend support to the growth prospects of this industry.

SANITARYWARE INDUSTRY IN INDIA:

India is a large, highly populated Country of around one billion people, with an economy, which is steadily growing. As per the study, there were an estimated 125 million dwellings in India (1995), but 200 million households. This reveals an acute housing shortage. The U.N. predicts an increase in the population of 1.6% per annum. There is a gradual migrant shift from rural to urban areas and 27% of the population now lives in urban areas as compared to 20% in 1971. There is a large difference in amenities between the urban population and the rural. In 1994, 70% of the urban population had access to adequate sanitation, whereas in the rural community only 14% had access. In 1991, approximately 64% of urban households had some kind of toilet facility compared with 9% of the rural areas. There is a widening difference in income between different regions, the rich and the poor. Sanitation is a must for every individual of our society. According to the Government estimates, more than 50% of the urban population does not access to sanitation facilities. Condition of the rural areas abyssmal that only 6% of the population are covered by sanitation. Population Covered by Sanitation Facilities 1985 1990 0.7 2.4 28.4 45.9

sa Rural Urban Sanitaryware demand :

1997 6.4 49.3

Sanitaryware Industries in India for the last 6-7 years have shown very dramatic growth with major players doubling their production capacity. The Companies have also upgraded their manufacturing system by introducing Battery Casting, Beam Casting and have gone in for latest imported Fast Firing Cycle Kiln Technology. These Companies have also upgraded their quality and have introduced high value range in the market, which has been accepted and appreciated. The demand for high value Sanitaryware in India is growing very fast. The Companies are trying to meet the demand as the realization per Metric Ton for high value product is very good which ultimately results in good profitability. In order to educate the customers in India to go for quality products and also for higher value sanitarywares, companies have adopted a very aggressive advertisement campaign. Companies have also strengthened their dealer network by offering showroom incentives and some of the companies have also gone for their own retail outlets in major towns. The demand for Sanitarywares in India is growing @ 15% -17% every year.

Government of India Policy on Housing Sector is very encouraging. The Government has announced Income Tax rebate on housing loan to boost the housing sector. All financial institutions are lending money for construction of house at a very low rate of interest. Government figure shows that Housing Sector is growing by approximately 25% every year. The need of Housing in India with 100 crores population looks to be very potential. As per DGTD Survey Report there is a shortage of about 20 million houses in the country by the end of 8th Five Year Plan. The housing has become a basic necessity, as people in India are looking forward for improved sanitary condition. The concept of making toilet is fast growing even in village areas, where toilet till last two years did not exist. The cost of producing sanitaryware in India is substantially low as compared to the advance countries, because the labour cost and the basic raw materials for manufacturing quality sanitarywares is available at very cheap rate and in abundance. Because of our low cost of production, Indian sanitarywares are very competitive in the neighboring countries and hence export from India is also growing everyday. Demand Estimates : The total demand for sanitaryware in India for the organized manufacturers is at present approximately 80,000 M.T. per annum. The region wise demand pattern can be estimated as follows: NORTH SOUTH EAST WEST TOTAL 18,000 32,000 15,000 15,000 80,000 Note: Every year the above demand is expected to grow by 15 to 17%. Current Market Size: The Indian Sanitaryware market is worth around 500 crores for the year 2001-02 with an annual market size of around 8 million pieces. This represents a yearly growth rate of about 3-4%. Major players: Until the mid 1940s the only Sanitaryware available in India was imported mainly from UK and was used only in upper class residences in major cities. The first Sanitaryware manufactured in India was by M/s. Parasuram Pottery Works. In the 1960s, companies like EID Parry, in collaboration with Royal Doulton of UK and Hindustan Sanitaryware in collaboration with Twyford of UK, started production of Vitreous China Sanitaryware. Other major players who joined the organized sector were Madhusudan Ceramics and Neyveli Ceramics. In the 1980s, 7-8 other players had entered the organized sector, but most of them have since been taken over by the majors. The large foreign players like American Standard, Toto, Villeroy and Boch have also set up distribution channels in India. In addition to the branded products made by the above companies, there are a large number of smallscale units mainly in Thangad and Morbi districts of Gujarat. Concerns: It has been observed that many sanitaryware manufacturers in the small-scale sector do not manufacture ceramic sanitaryware to standard quality norms. Moreover some of these manufacturers use the word "Vitreous" along with their brand name whereas they do not meet the water absorption standards and thereby are misleading the consumers.

Outlook for Sanitaryware Industry in India: In the next decade, India is expected to be one of the world's fastest growing countries for sanitaryware consumption. The sanitation penetration has more than trebled from 8% in 1982 to 18% in 1994 and to 29% in 1999. The comparative penetration levels in neighboring countries are as follows: Pakistan: 50%, Sri Lanka: 65%, Malaysia: 94% and Thailand: 96%. The government impetus to improve hygiene and sanitation is likely to increase the demand for sanitaryware in India. Moreover the increasing urbanization of India and the consequent requirement for residential and commercial buildings will be a major driver for growth of sanitaryware. Along with this the focus of the central and state governments to provide housing facilities to the poor, is also expected to generate demand. The National Housing Policy formulation that envisages "Housing for all" by the end of Ninth Plan period is a big step towards this. Indira Awaas Yojana, Samgra Awaas Yojana are programs for providing housing to the rural poor is a key step taken by the government in this area. The housing development organizations like HUDCO, State Housing Development Boards and Rajiv Gandhi Rural Housing Corporation Ltd. are also playing a large role in this initiative. It is estimated that there is currently a demand for 20 million housing units in India. Further, a significant number of the 115 million housing units across the country will need reconstruction for improvement. Therefore a replacement market will emerge, though currently original equipment sanitaryware market accounts for nearly 90% of the market. Top
SANITARYWARE INDUSTRY STATISTICS:

1. 2. 3. 4. 5. 6.

World production: India's Share: World ranking (in production): Global Industry Growth Rate: Growth Rate (India Domestic Market): Organized sector: % Share of Production: No. of units: Production Capacity: Actual Production: Unorganized sector: % Share of Production: Production Capacity: Actual Production:

187 Million pieces 6.7 Million pieces. not in the Top 10 (India A/c for 3.30%) 5-7% 10% 43% 6 103300 M.T. per annum 95000 M.T. per annum 57% 136700 M.T. per annum 120000 M.T. per annum

7.

India, today, is all set to become the biggest manufacturing hub for international sanitary wares brand. Even foreign brands like H&R Johnson, Roca and Kohler have established their operations in India. Indias current sanitary ware market size is almost 500 crores and in fact is growing at an annual growth rate of 3-4 percent in the industry. Going forward, India will have a huge market for sanitary ware products and of course the export market will also grow simultaneously. Further, governments support to improve sanitation and hygiene and increasing urbanization has given a big push to the Indian sanitary ware industry. The companies are applying accurate standards and using top machinery and stringent quality measures with latest designs to manufacture finest quality machines India, today, is all set to become the biggest manufacturing hub for international sanitary wares brand. Even foreign brands like H&R Johnson, Roca and Kohler have established their operations in India. For the starters, Indian sanitary wares are comparatively cheaper as opposed to our western counterparts, courtesy availability of ample raw materials and low cost labor in comparison to other countries. This in fact has given Indian sanitary ware products an edge over the competitors from the nearby countries and naturally the exports of sanitary wares from India is scaling up. On other hand, Indias population is growing at a growing at a significant rate. Of which 27 percent of the population hails from urban areas. However, there is large difference in distribution of amenities between the urban and rural population of the country. As per 1994 study, almost 70 percent of the urban population has access to sufficient sanitation, when it comes to the rural population only 14 percent has access. According to current governments estimation, almost 50 percent of the urban population lacks proper sanitation facilities, while the condition of rural market is terrible. In the last five, six years, the Indian sanitary ware market has witnessed exponential growth, with major companies increasing their production capacities. Certainly, Industrys growth is directly related to the development in real estate. Today, housings demands are on rise. And interestingly people have started taking interest in top sanitary wares, thanks to the rise in purchasing power parity. Actually the increased demand for sanitary ware is not just emanating from the new projects but there is a huge market for replacement products also. The remarkable growth by the industry has inspired industry majors to enhance their manufacturing system and even apply latest technology to give customers value for their money. Moreover, Indian companies are taking a step further to enlighten people about the advantages of premium sanitary wares. With 15 to 17 percent growth per year, Indian manufacturers have strengthened their dealer network all across the country. Demand for Made-in-india Sanitary Wares in the International Markets China (Mainland), Nigeria, Hong Kong, Malawi, Nepal, Thailand, United States Prominent Destinations to Source Sanitary Wares from India Majority of the sanitary companies have set up their plants in Rajasthan and Gujarat given the availability of large quantity of raw material and low-priced labor there.