Gujarat Ceramic Tiles to Get Costlier as Production Cost Increases
Faced with increased cost of production, tile makers in Morbi, India's largest cluster of ceramic industry, Morbi have decided to raise the prices of their products by about 10-15%, The new prices will come into effect from September 1, according to ceramic industry players. "The prices of vitrified tiles have been raised by Rs 2 per square foot, which translates into an increase of 10-12%," said Mukesh Kundariya, president, vitrified tiles division, Morbi Ceramic Association (MCA). "In case of wall tiles, prices have been raised by Rs 15 per box with each box containing10-foot of wall tiles," said Nilesh Jetpariya, president, wall tiles division, MCA. One box of wall tiles costs around Rs 100. The tile makers in Morbi have decided to raise prices to pass on the increased production cost, which has gone up by around 15% due to increase in prices of natural gas, raw materials, coal as well as a surge in transportation cost following spiralling diesel prices, said industry players. Gujarat Gas Limited (GGL) hiked the price of natural gas supplied to ceramic and sanitaryware units in Morbi and Surendranagar. For 3-month minimum guaranteed offtake (MGO), GGL increased the rate by Rs 4.37 per SCM (excluding taxes). "To regulate production, around 100 vitrified tile manufacturing have shut and additional200 units making wall tiles will close for a month starting September 1," said Morbi ceramic tile makers.
Tags : ALLIED Gujarat Production ceramic tiles Increases cost Costlier