The price band for tiles, ceramics, sanitaryware
The past few years have been challenging for the tile industry, with overcapacity, rise in input costs, pricing pressure from unorganised players, dumping from China, GST and demonetisation.
“We see that the worst is over in terms of pricing pressure and expect 10-12 per cent growth in 2019-2020,” predicts Kamlesh Patel, Chairman and Managing Director, Asian Granito India. He adds that, at present, input costs are increasing owing to multiple factors. “So, like other organised players, we are compelled to pass on the burden on end-users. However, customers can choose preferred products according to their budget.”
Atul Sanghvi, Executive Director & CEO, CERA Sanitaryware, sees pricing under pressure, owing to sluggish demand consequent to slowdown in housing construction.
Meanwhile, Dinesh Vyas, Marketing head, H&R Johnson, points to the ceramic tile industry as unique among building materials in the sense that the cost of basic products has consistently come down. “Pricing is a matter of acceptance of the product at a value customers perceive. In most cases, it is relative in nature. However, comparison parameters are not in place in the absence of required domain knowledge.”
For tiles, the price is generally referred to in terms of size and whether they are vitrified. Vyas sees this approach as factually inaccurate. “Overall, prices are under pressure in basic ceramic tiles as the competition is really fierce,” he insists.