Friday 14 August 2015

Thangadh : Most Affordable Sanitary ware goes Huge….

The New India….Emerging Giant….
India is one of the fastest growing economies of the world. The Industrial Super revolution in on in India. The rate at which new industries, residences and offices are opening are phenomenal. The real strength of India, Rural parts of the country are getting a total overhaul in living standards. From traveling to housing to fashion, all is changing, at a fast rate. Government is promoting health and sanitation on a large scale.
Sanitary ware Demand….Sky rocketing…
All the above factors point at a very important direction as regards Sanitary ware demand. It is sky rocketing. In India, Sanitary ware manufacturing is still highly labor intensive, because labor is far economical as a factor of input compared to Technology. Further, Labor can be reduced if demand shrinks. The same is not true of technology that is totally automatic.
Labor management is an issue most entrepreneurs would like to do away with. Specially when the supply of labor is decreasing. The rates as well as behaviors of labor pose a very uncomfortable situation. This challenge acts as a barrier for new entrants in the industry. So, the new capacities that come is are with direct investment of old players or new entrant with assistance or direct partnership of old player in the Industry.
World’s Most economical Sanitary ware….
India has two regions where the Sanitary ware manufacturing clusters exist. The Morbi region and the Thangadh region. While Morbi is known for its superlative growth in a multiple industries, though the majority still remains ceramics, Thangadh is renowned for its price of goods. Througout the world if you talk of price effective sanitary ware, the common answers will all lead to this word called Thangadh, the city of good affordable sanitary ware.
Thangadh…..Know it…
Thangadh is a very small town located in Gujarat. It is a major source of Than Plasa clay, the main ingredient for manufacture of high quality sanitary ware and ceramics. The Travel Pundits regard it as the town of Heritage Event the Tarnetar Mela, very popularly recognized in the whole of western world. An Event that brings history of the region to life.
It once was ranked third in Per Capita Income of India, an achievement that has made people of the town proud. It is felt that it is still a very good labor generator and the payouts to the people are generous as well.
Thangadh and Ceramics
Thangadh is the Economy Capital for Sanitary ware in the world. It has domestic as well as international supply.
Thangadh and Ceramics share a long history. In fact this was a place where potters first made common clay utensils. As the fables go,  Thangadh was a junction in those days. An entrepreneur passing by stopped to have tea and saw the utensils. He inquired for the manufacturer and found that there was something different about this ceramic utensils. He took some clay to Mumbai (Then Bombay) for testing and found that this was the ideal clay for Ceramics.
The Nature had blessed Thangadh with Rich Land of Main Raw-Material for Ceramic – Fire Clay, which was main cause of the development of Ceramic Industries at Thangadh situated in Surendranagar, District Gujarat State of India.

After all the research, the entrepreneur started pouring investment in the area to start factories. This is believed to be the start of ceramics in the Thangadh. Industrial development is believed to have started in 1913. The pioneer in Ceramic at Thangadh was Shri Sorabji Dalal The initial growth was very slow and was totally controlled by a few big investors who put up factories. In the Eighties, more factories started coming up and export to various countries started. Exports were largely to Middle east but some part of Europe got a taste of the Thangadh sanitary ware.
The Maturity of Ceramics In Thangadh
Post Liberalisation, India saw a very huge change in things, which actualized in later part of the 90s. Thangadh Ceramic Industry wasn’t far behind the impending growth opportunities. However, the methods were age old. Technology was being timed out and machinery was largely non existent. The kilns used were down draft or shuttle type which gave limited production. Transportation inbound as well as outbound were very slow. IN short, the state of the affair was not good enough for the industry.
However, as necessity is the mother of inventions, the new breed of entrepreneurs with the help of traders from around the world started changing things and patterns of working. The mechanization was introduced in certain areas. Movement of material systems were upgraded. Kilns started being replaced to Tunnels which could give better throughputs. Battery casting was also introduced in some units. Colors and glaze qualities improved. Laboratory set ups were promoted in some units that dealt in international markets. All this change saw the markets for the products improving. The industry and the industrialists had matured to take on the big leap in the next century.
The Scenario Today….
The Entrepreneurs of Thangadh has put the city on the world map of ceramics. It is probably the smallest cluster of closely placed ceramics industries in a very small area. In the past year itself there are more than 12 new units established. The capacities in the earlier years was around 600 in limited units. Others had even smaller capacities of pieces per day. Today the same is believed to stand at 1000 per unit. With more units as well as more capacities, the region rolls out more products than any other cluster including Morbi.
There were only white and plain colors earlier. Today there are more than 20 colors to design with. There were very limited range and large production of Orissa Pans was seen. Today, there is a wide variety that boasts of more than 180 shapes. The surface finish was plain earlier. Today, Vitrosa and Hand painting have taken over. Not to mention stickers and other surface treatments to the sanitary ware.
Keeping their tradition of being price effective, Thangadh now offers a stylish and exquisite sanitary ware. If you are looking for sanitary ware that is affordable yet luxutious, Thangadh is the place to go.
Markets
Thangadh Caters to total India. There is not a nook of the country where there is Sanitation but there is no Piece of Thangadh Sanitary ware. In fact most of the government sanitation drives have been successful due to the price advantage of Thangadh products.
Thangadh companies are now also into building of brands as they have the quality that can be very successful in Metros and cosmos of India. The companies are going in for better advertising, developing brands rather than stick to the HINDUSTAN range and the smart ones are really using technology as well a forward marketing to build customer base for their brands all across India.
The Challenges
Due to capacity expansion all over, there are two major concerns of business houses. First, labor rates are rising and availability is diminishing by the day. There are labor migrating from different areas of India, but the situation is getting challenging and putting pressure on the costs as well. The other challenge though expected to be temporary is the impending condition of over supply. Again due to capacity expansions taking place in a very short period of time, the demons of over supply are haunting industry players, largely new ones. The costs of inputs such as gas and raw material are going up too, inviting price rise.
However, the future of the industry on the long run looks bright due to the enhancements of quality and design of the product. Add to that the new second generation coming into industry with fresh ideas and broader vision, there is only one direction the Thangadh Sanitary ware is going, upwards.

Editor’s Message
Build Avenue has become one magazine that is read all over India in ceramic circles. It has become the accepted magazine that brings good articleship with news and views. The Magazine now needs a fresher look. This is where we will need our readers to get involved. Build Avenue is your magazine. Make it great.
You can send us your views, and ideas to the magazine’s office, online or in print to help us make it better. Your articles would be a bonus. However, if you can send us just your requests for some special subjects, we will be glad to write about the same.
Further, as the editor of the publication, we are into moving into international markets. We would like to have your photos with some text for your visits to some industrial units in some other countries like Spain, China, Italy or others. This would really help you get an excusive space in our magazine and help us bring World Class factories live in the magazine.
In this issue we have our international outlook on Thailand. Thailand is a country small in size, but big on opportunity. Its Ceramic Growth is on a positive. Probably one of the first countries we are dealing with in the far eastern markets. We are sure that we will bring about many articles for the far eastern markets which threaten to be our competition in the global arena.
We further look at Thangadh, again. The area is into a major uplift as far as capacity enhancement is concerned. It is also the major supplier of ceramics, largely, Sanitary ware. Starting from history, we have covered topics till what Thagadh business houses are experiencing now. We are sure this will be a good insight into the area.

Please do get involved in the growth of your magazine, the Build Avenue.

Saturday 8 August 2015

History: Thailand Ceramic Scenario

While the world population grows, so does the need for good housing. With increase in literacy and awareness of sanitation, every country is witnessing a surge in the need for ceramic goods. Moreover, with every country becoming more self reliant, better lifestyles too are demanded. Thailand, is not far behind in the phenomenon. While a, lot of industries are doing well in Thailand, so is the Ceramic Industry. So here is a look at the Thai Ceramic Scenario.

History

The archaeological survey of Thailand reveals that Thailand had a strong ceramic culture since years. However, the exact periods are unknown. Further, the articles found at various sites can be classified into two major categories.

Ones that were manufactured in Thailand had a clear touch and appearance of the Thai Artisan. As the communities in Thailand developed in science and art, the ceramics of those times reflect this progress. It is also evident that Thailand’s rich resources in clay were discovered well before these times and slowly, the ceramic potter’s tools and products came into the Thai households. Most of these products were common household utensils.

In the same period, there was imported ceramic ware in use as well. Thailand being a land of trade in those times, it is no surprise that there were other countries whose ceramic goods made it to Thai house holds as well.

Raw Material : A major Advantage

 As we know, the ceramic industry is the industry of good quality clay. If there is clay there is industry. Luckily, Thailand has huge deposits of quality clay largely in Lampong province of the country. There are other areas too that have good clay deposits.

The nearness to the major raw material makes for a great strategic advantage for the industry. This is also a major reason why a number of domestic as well as foreign players have entered into manufacture and supply of ceramic goods in Thailand.

Further, Thai Labor is quiet cheap as well. Another big reason for the Ceramic Products being cheaper and more affordable in the international market. Ceramics being a highly labor intensive line, this factor of production helps the cause of small industries. In fact, Lampong Province prides itself to provide one of the largest employments in the whole of Thailand. The province virtually survives on ceramic factories that are around 200+ in the province and surrounding regions.

Some Statistics: 2010 Survey

In the year 2010, Ceramic Industries Development Center reported some findings of the ceramic industry that are worth looking at. The Ceramic Industry in Thailand has attracted lot of foreign funds inflow which is one of the major catalysts of the industry. According to the report, approximately 800 million USD inflow was witnessed. The classification of product wise investments can be summarized as below.

The floor tiles, wall tiles and mosaics had 12 factories that focused on high technology and had a 60% exports of the total production.

Sanitary ware sub sector had 8 factories, again with the similar 60% exports to international markets.

The insulators sub sector’s 90% of the production was consumed in domestic market, which again is great, owing to the growth in the Thai economy, a clear indication of investments in infrastructure. The 10 factories in insulators are largely located in Bangkok, Nakom Pratom and in central Thailand and the Rayong province of Eastern Thailand.

Smaller Industries in decoratives ceramics as well as dinner ware are largely located in Lampong, Lamhun and Chianmai. The dinner ware had approximately 68 factories of smaller size, while decoratives are manufactured in 123 small units. All these are labor intensive and provide good amount of employment in the region. 80% of the productions of these sub sectors are exports.

Thailand also has a number of high technology roof tiles manufacturers. The best part is their Roof tiles manufacturing is now focusing on Green Manufacturing, and yet it has an affordable pricing that has domestic as well as International markets.

As can be seen from the above, the Ceramic Industry of Thailand has a very large chunk of Exports.

Lampang : The Epicenter of Thai Ceramics
Lampang is one of the most important ceramic regions of all producers. It is located at the north of Thailand. Reasons or it being a successful region for ceramics are:
  1. It is the main source of white clay in Thailand, with 93% of all white clay coming from Lampang. This white clay is highly resistant to heat thus producing quality products.
  2. The labour is cheaper in the province and surrounding areas.
  3. Lampang is has a major locational advantage. It is the bypass to many nearby provinces and has all forms of transportation.
The origin of Ceramics in Lampang was when a villager from Jae-Hom district found Whetstone made from Kaolinite. After that there were some Chinese making progresses as they had the financial might to do it.
From 1947, when partially organized factories started coming un in Lampang region, through 1960s and 1980s the economic situation as well as organizing of industry was faster. Government started taking interest in the growth of the sector in the region. There was better education and training. Stronger research and Quality Control Support. Seminars and workshops on technology and commercial education to upgrade trade commerce and exports.

Today, the ceramic factories in Lampang range from small to large scale. There are about 30 factories for medium to large scale numbering from 100-600 in labor force per factory. There are about 120 factories for small scale with 10-80 in labor force per factory. This generates a cash flow into the province of at least 2,000 million baht per year.
Some distinguishing features Of Lampang ceramics are:
  • Conservative style, i.e. : using the jigger method of production and dragon kilns, which still use wood as an energy source; they produce 5" - 7" local bowls along with electric insulators and Art Ceramics of which only 7-8 factories remain in operation today.
  • LPG kiln: to compete with products from abroad, the LPG kiln is used to produce gift sets, home decoration sets, dinnerware, ceramic fences, and handmade products.
  • High technology products: using the tunnel kiln, Lampang was able to expand production capacity to serve the market demand of Europe and America. These products are tableware, large flower pots, and vases.
Though Lampang has been producing white clay ceramics for only 50 years, it is one of the most important exports of Thailand and will continue to enhance income and occupational growth of the local people in the future.
The Future
The Future for Thailand Ceramics Sector is expected to be good in the coming years. The labor costs are going high so are the raw material prices. These may be a matter of concern, but looking at the pricing of all ceramic products going up in the past few years, there is no fear that the industry will loose its shine in the future.
However, the major players will have to look out for trends in designs and technologies. These factors will decide their actual position 10 years from now. As the world is changing fast and Asia is pretty much becoming the manufacturing continent of the world, there will be sharp competition from other countries in Asia. The development too will be huge in Asia, so it is imperative that there be consistent quality and design up gradation in Ceramics in Thailand.


Ceramic Tiles in America: The Glimpse

America or geographically known as USA, is even in the worst economic times, remained a Financial Superpower. It has the power and the courage to purchase from the world. It is also regarded as the biggest importer of goods. Presenting the total scenario of Ceramic Tiles of USA in one issue which is nearly impossible. However, we will give you some glimpses of the same.

The Consumption Patterns:

In India we largely regard ceramic or mosaic tiles for flooring. However, in the USA, This is a sub sector of floor coverings. IN the USA, most buildings in the past had wooden floorings or rugs put on wooden floorings. People largely avoided HARD FLOORs as they say. This can be due to frosty conditions in mostly during the year or just a simple habit. The tiles thus entered the US mainstream usage very late.




Looking from the information from the year 2001, the year that had close to 2.00 bill sq. ft. of consumption, there was a steady growth in consumption. This growth can be attributed to the growth in the construction industry of the USA.

However, since the housing bubble burst in 2007, the volumes came down sharply. The industry as we know is largely dependent on housing. As 2009 saw a small rise, the same was seen in 2010 and 2011 as rise in sales.

The best part is that import penetration is falling since last 6-7 years rapidly. This is a bright sign for the upcoming ceramic tiles manufacturers as they are taking the lead in the markets.

The leading Countries exporting to USA are Mexico, China followed by Italy, Brazil and Spain. With India becoming a real strong competitor in the last few years. We are sure Indian Ceramic tiles will find a way to the USA markets soon.


There are a number of Ceramic Tiles manufacturers in the USA. They largely supply to the American Market and a part of the production is exported too.

In the last few years, the Manufacturers are strongly taking lead over the importers and most of the consumption in the times to come will be met by the domestic shipments only. This is a great positive sign for America, but a huge challenge for the exporters, largely Mexico and China.

Many of the same issues that have led to the decline in tile consumption over the last five years continue to negatively affect the market, such as: 

      Struggling commercial construction and residential housing markets, despite historically-low mortgage rates

      High unemployment and low housing prices, which lead to less purchasing power for consumers

      Weak economic growth

      Historically low new home sales






WHERE DO WE STAND?

India is growing as one of the best manufacturers of Ceramic Tiles. The country will be at par with Spain and Italy in the future. Our biggest strength in the American markets will be our pricing.

The biggest challenge though will be the quality of our products in the American Extreme conditions. From the Cold and Frigid North and East coast, to the High temperate deserts of USA, our tiles should be able to withstand the fluctuating weather.

Secondly, the Indian manufacturers will have to stringently follow the ASTM standards which are accepted in the USA. In the USA, the DIY or Do It Yourself is very popular. The Indians will also have to work out products offerings with a DIY option.

Further, Americans are largely Brand conscious Buyers, so the Manufacturers in India will have to have a heavy branding exercise or tie up with an existing Interior design brand which needs a hard flooring option, namely quality ceramic tiles.

All this form a good opportunity for Indian exporters if thought out strategically.