The Indian tile industry is seeing a boom that is expected to continue in the next five years. The sector, which comprises of big as well as smaller companies, has thrived in the recent years, creating a global presence. In fact, Indian wall tiles exporters are now among the world’s leading players.
This is no fluke. The growth in the industry, although recent, has been backed by a strong local economy and the confidence within the industry regarding its product. The demand is expected to be between 18% to 21% in the next five years. This is impressive considering that a couple of decades ago, we had a very basic market — low demand with low production and design option.
Booming construction industry
The tile industry is an intermediary industry in the construction sector. Hence, its growth is directly associated with the latter. The rising graph of the tile industry can, therefore, be connected to the growth of the construction industry. Despite a recent slowdown in some urban sectors, construction is still an industry that has high activity and demand.
No of options
Indian manufactures are today at par with international manufacturers. India is the third largest supplier of ceramic tiles. Although it is the ceramic industry that has performed remarkably, it is not the only option available for buyers today. A number of other options, including natural stones are also available. This has also benefited Indian wall tiles exporters who are now counted among the leading exporters in the international market.
India is rich in its sources, including its reserve of natural stones. We have mines of graphite, sandstone and other popular stones that are used for making tiles. This gives manufacturers have an indigenous source for raw material. Because of this, they can offer cost-effective products that can be scaled up when required.
Healthy domestic industry
For any industry to thrive, international sales come only after domestic sales and this is why the Indian tile industry’s growth has been organic. Its manufacturers are backed by a healthy growing economy with a strong domestic market. It has a multi-layered sector with big as well as small and medium scale companies that offer a varied price scale. The competition and a healthy domestic demand trend ensures that these firms have a solid footing with strong infrastructural support.
This is related to the aforementioned infrastructural support. Wall tiles exporters have directly benefited from the government’s commitment to encourage entrepreneurship and manufacturing. It means that red tape has been reduced, while policies that can encourage growth are being actively pursued.
World class manufacturing plants
Indian firms also boast of world class manufacturing plants. Many manufacturing plants use the latest of technology to make tiles. These units are capable of producing world-class tiles at a large scale and very reasonable cost. This is backed by the availability of trained labour. This is especially important in the luxury segment where we need designers and master craftsmen.
The reason behind the impressive rise of the industry in the last two years can ultimately be traced to one simple reason — rise in incomes. Post-liberalization has brought in higher salaries with more disposable incomes. This has had a multi-layered effect that has ultimately benefited the tile industry.
Firstly, it means that there are now more people buying property. Furthermore, the investment starts at a young age and continues throughout their life. This has resulted in the booming construction industry and its positive impact on the tile industry as explained above. Secondly, an increase in disposable incomes means that people are now willing to invest in luxury goods like designer tiles or natural stone tiles, ensuring a wide impact on the tile industry.
Awareness of interior aesthetics
This is another effect of the rise in incomes. People are now more interested in designing homes that are more than just functional. Where tiles in Indian homes were earlier limited to purely functional ceramic tiles in bathrooms and kitchens, more and more people are now investing in tiles for purely aesthetic reasons. Consequently, we now have people buying designer tiles, natural stone tiles, custom-built tiles and other more eclectic choices.
The Indian wall tiles exporters are slowly emerging as leading players in the international market. Their growth is backed by a strong manufacturing sector and a favorable domestic market.