Ceramic manufacturers increase presence in domestic markets

Govt imposes anti-dumping, regulatory duties to facilitate industry

KARACHI: Pakistan-based tiles and ceramics manufacturers have claimed to significantly increase their presence in domestic markets, following which the government imposed anti-dumping and regulatory duties and new manufacturers joined the growing industry.

“Our (local manufacturers) presence in domestic market has increased to 60% in the last six months from 50%,” Shabbir Tiles and Ceramics Limited CEO Masood Jaffery told a group of journalists, who visited its showroom in Karachi.

There was a time when local markets were filled with around 50% smuggled tiles and ceramic about six months ago. The penetration of the illicit tiles has dropped to 40% now, he said.

Pakistan is consuming around six million square meters a month, including illicit ones.

“The presence of Chinese tiles has dropped following impositions of the duties. However, Iranian illicit tiles continue to remain a problem for the industry,” he said.

Jaffery said imposition of the duties have resulted in attracting two new players in the industry; one in Lahore and another one in Faislabad. “Both the players have set up units with Chinese technology,” he said.

Shabbir Tiles expansion

He said Shabbir Tiles, the only tiles manufacturing company listed at the Pakistan Stock Exchange (PSX), has invested Rs1.4 billion in the past 18 months to expand production and upgrade technology at the production site.

He has said his company has introduced outdoor tiles called ‘vitrified tiles’, which is mostly used in car parking area. “We are set to start testing operations for vitrified tiles from Wednesday,” he said. “The expansion cost Rs200 million to the company.”

The remaining Rs1.2 million has been spent on upgrading technology. With the new investment, the installed production capacity has been increased to around one million square meter per month from around 800,000 square meters per month previously.

He said the industry was growing at 10% per annum till last year.

However, in the first six months of the current fiscal year, it has slowed down to around 5% due to ban on high-rise buildings in Karachi and halt of construction work at one of the largest projects since its case has been in court these days, he remarked.

Published in The Express Tribune, February 28^th, 2019.

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