In western India, a small town called Morbi is quietly changing. It is India's undisputed "King of Ceramics" with more than 800 tile factories, accounting for 90% of India's ceramic tile production. Despite being only a quarter of the size of the market in China, Morbi's ambitions go far beyond that. As the global market landscape changes, Morbi aims for a higher goal – to challenge China's leadership in the ceramic tile industry.
The turn of the European market
The post-pandemic global economic environment has prompted many European companies to rethink their supply chain layouts. Concaria, president of the Morbi Tile Manufacturers Association, said the changes provide an unprecedented opportunity for Morbi. European companies are beginning to distance themselves from China and look to other partners, and India is exactly what they need. Morby's tile makers believe they will soon be able to leave China behind.
Investment & Innovation
To achieve this ambition, Morbi is undergoing massive investments and reforms. A 425-hectare ceramics park is expected to be completed in the next six months, which will be a significant milestone. Meanwhile, in Rajkot, 100 kilometers away, engineers are busy producing "Made in India" machines for these factories to reduce costs and increase efficiency. In October this year, seven investment agreements were signed, mainly in the field of ceramics.
Cost control and market expansion
Industry insiders in Morbi believe that although it is a complex, high-risk and high-cost business, all the effort is worth it. They are looking to get a more competitive price by controlling fuel costs. Nilaish, the former president of the Morby Ceramics Association, said that as long as fuel costs can be controlled, Morby will be able to win the competition with China in the next five to seven years.
A new choice for Europe
In Europe, market demand is changing as the way people use ceramic tiles shifts. More and more businesses and homes are opting for ceramic tile heating systems, as well as beautiful and stylish tile walls. This provides Morbi with further access to the European market. India's industry leaders hope to take advantage of the West's waning confidence in doing business with China, believing that Europe will soon open its arms to them.
Future outlook
All eyes are now on the ceramic park project, which could be the key to Morby's overtaking of China in the field of ceramic tiles. According to forecasts for 2023 to 2028, China's ceramic tile industry is growing at a CAGR of less than 5%, compared to 8.94% in India. Although China's ceramic tile production reached 7.3 billion square meters in 2022, Morby's ceramic tile manufacturers are confident about the future.
Morby's story isn't just about the rise of a small town, it's also symbolic of a potential change in the power structure of the global economy. As Morbi continues to move forward, it not only challenges China's leadership in the ceramic tile industry, but also demonstrates the power and potential of Made in India to the world.