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Rediff.com  » Business » Is India's Marble Industry Facing A Bleak Future?

Is India's Marble Industry Facing A Bleak Future?

By Nitin Kumar
May 09, 2024 10:46 IST
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'Every year, the marble industry is shrinking due to tiles. It has already decreased by 20-25 per cent in recent years.'

Kindly note the image has been published only for representational purposes. Photograph: Kind courtersy Adelina ZW/Pixabay

The heartland of India's marble industry, Kishangarh, a once-thriving hub renowned for its exquisite marble craftsmanship, is grappling with a perfect storm of adversities: From the encroaching dominance of ceramic tiles to the burden of taxation, to the proliferation of cheap Chinese substitutes, and more.

 

The rapid expansion of tile showrooms is threatening the livelihoods of more than 25,000 workers involved with the town's marble industry, which has shrunk by 25 per cent in recent years, traders said.

"With the rapid proliferation of tile showrooms, we fear unemployment is imminent," said Mahesh Kholase, a marble seller at Stone Studio on Makrana Road, pointing across the street where one such tile store had opened.

"In the past two years, over 10 tile showrooms have emerged nearby."

Kishangarh's marble and granite industry, located in the Rajasthan State Industrial Development and Investment Corporation (RIICO) Industrial Area, spans 50 km and includes 1,500 large units, 4,000 dealers, and 25,000 workers.

The industry generates a daily business turnover of over Rs 16 crore, according to the Kishangarh Marble Association.

"Every year, the marble industry is shrinking due to tiles. It has already decreased by 20-25 per cent in recent years," says Vishesh Patni, vice-president of sales operations, Asian Marbles.

Over 90 per cent of the tiles sold in India, including Kishangarh, originate from Morbi district in Gujarat's Saurashtra region.

Morbi hosts over 1,000 tile factories and reportedly boasts an annual turnover of approximately Rs 50,000 crore.

As tiles gain dominance, marble industry players are urging for a reduction in GST rates to bolster the domestic natural resources sector.

Both marble and tiles are currently taxed at an 18 per cent rate, but the marble industry is pushing for a decrease to 12 per cent.

"We have forwarded our demands for tax reduction to the government. Ideally, the tax on marble should be 5 per cent, as we previously paid a 5 per cent VAT," said Sampat Rai Sharma, CEO, Kishangarh Marble Association.

The expansion of the tile industry threatens not just marble dealers and sellers, but also cutters, polishers, and others involved in the industry.

"We're skilled in stonework. How will we survive if only tiles dominate the market?

The government should help us not only by reducing GST but also by providing incentives to marble workers," said Mohd Taslim Khan, a worker from Bihar overseeing marble cutting at Godawari Stones.

Industry experts highlight cost-effectiveness and variety as key factors driving buyers towards tiles over marble or granite.

While there are approximately 1,000 types of marble and granite stones available in the country, only a few hundred are generally accessible.

Tiles with patterns similar to those of marble and granite are widely available in the market.

"Leveraging its cost advantage, the tiles industry provides replicas of a wide range of natural stone patterns, spanning from standard to ultra-luxury varieties," explained Patni.

Premium Makrana marble ranges from Rs 1,000 to Rs 7,000 per square feet, while Italian marble can cost up to Rs 50,000 per square feet.

Replica tiles of these varieties are available at one-tenth of the cost, said industry players.

Additionally, the installation cost of marble is Rs 100, which is double that of tiles, says Trilok, a manager at Ranka Tiles, which sells Morbi-made tiles.

"People used to prefer marble for its durability, but now, with home renovations occurring within 20-30 years, people are less inclined to spend solely for marble's durability."

Besides the domestic concerns regarding Morbi tiles and GST, the growing market share of synthetic Chinese Italian marble and graphite substitutes is also causing concern.

"Currently, Chinese stone is being utilised in kitchens, stairs, and dining tables for its translucent properties and non-water absorbent features. Although this product is currently manufactured exclusively in China, its demand is increasing," said Patni.

While industry players acknowledge that Chinese imports are detrimental, they anticipate an increase in the future.

"Customer is the king. If there is demand, people will import," remarked Sharma.

Feature Presentation: Aslam Hunani/Rediff.com

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