+
Morbi ceramic factories likely to shut down due to rising costs
Real Estate

Morbi ceramic factories likely to shut down due to rising costs

Approximately 800 ceramic factories in and around Morbi are encountering an uncertain future.

The constant surge in costs of gas, coal and raw materials have observed as many as 100 units closing down in the past few months. About 100 more units are on the verge of shutting down by this month-end due to an upsurge in input price, Mukesh Ughareja, former president of Morbi Ceramic Association, told the media. Industry players are blaming overstocking due to an increase in product costs and liquidity crunch for shutting down the units.

As per the industry association earlier, the gas usage of Morbi units was about 65 lakh standard cubic metres (SCM) per day. Presently, it has dropped to 55 lakh SCM due to the shutting down of units. The ceramic industry, which was already toiling due to high freight and container costs, has been hit hard by an upsurge in gas costs, which have doubled in the past six months.

The increase in input price has additionally severely impacted the export volumes. Since the past three months, the export has dipped by nearly 25%. As the domestic market demand is not high enough, units are meeting the issue of overstock. Morbi’s annual export is Rs 13,000 crore which was estimated to reach Rs 15,000 crore this year. But if the present situation persists till the year-end, exports won’t touch Rs 11,000 crore.

The surge in costs of gas and other raw materials has led to a rise in production price by as much as 30% which is making it tough for Morbi producers to contend in the international market.

Image Source

Approximately 800 ceramic factories in and around Morbi are encountering an uncertain future. The constant surge in costs of gas, coal and raw materials have observed as many as 100 units closing down in the past few months. About 100 more units are on the verge of shutting down by this month-end due to an upsurge in input price, Mukesh Ughareja, former president of Morbi Ceramic Association, told the media. Industry players are blaming overstocking due to an increase in product costs and liquidity crunch for shutting down the units. As per the industry association earlier, the gas usage of Morbi units was about 65 lakh standard cubic metres (SCM) per day. Presently, it has dropped to 55 lakh SCM due to the shutting down of units. The ceramic industry, which was already toiling due to high freight and container costs, has been hit hard by an upsurge in gas costs, which have doubled in the past six months. The increase in input price has additionally severely impacted the export volumes. Since the past three months, the export has dipped by nearly 25%. As the domestic market demand is not high enough, units are meeting the issue of overstock. Morbi’s annual export is Rs 13,000 crore which was estimated to reach Rs 15,000 crore this year. But if the present situation persists till the year-end, exports won’t touch Rs 11,000 crore. The surge in costs of gas and other raw materials has led to a rise in production price by as much as 30% which is making it tough for Morbi producers to contend in the international market. Image Source

Next Story
Infrastructure Urban

India to Invest Rs 600 Billion to Upgrade 1,000 ITIs

As part of its drive to modernise vocational training, the Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with Gujarat’s Labour and Employment Department, held a State-Level Workshop at the NAMTECH Campus within IIT-Gandhinagar to discuss the National Scheme for ITI Upgradation.The consultation brought together key stakeholders from industry and the training ecosystem to align expectations and support implementation of the scheme, which aims to transform 1,000 Industrial Training Institutes (ITIs) across India using a hub-and-spoke model. The total outlay stands ..

Next Story
Infrastructure Urban

India Unveils Rs 600 Billion Maritime Finance Push

The Ministry of Ports, Shipping & Waterways (MoPSW) hosted the Maritime Financing Summit 2025 in New Delhi, bringing together over 250 stakeholders including policymakers, industry leaders, global investors, and financial institutions. The summit, held under the ambit of Maritime Amrit Kaal Vision (MAKV) 2047, focused on transforming India into a leading maritime power with strengthened financial, infrastructural, and technological capabilities.Union Minister Sarbananda Sonowal emphasised India's strategic progress, noting that average port turnaround times have dropped from four days to u..

Next Story
Infrastructure Urban

Govt Allocates Rs 500 Million To Boost Community Radio

The Central Government, through its ‘Supporting Community Radio Movement in India’ scheme, has allocated Rs 500 million to strengthen the community radio ecosystem across the country. The initiative aims to assist both newly established and long-operational Community Radio Stations (CRSs), ensuring their relevance to local educational, social, cultural, and developmental needs.According to the policy published by the Ministry of Information and Broadcasting, CRSs may be set up by not-for-profit organisations with at least three years of demonstrated community service. These stations are ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?