Asian Granito India expanding export network to over 120 countries

Asian Granito, a leading tiles brand of India, is eyeing exponential growth from its exports business. Anti-China sentiments, reduction in gas prices, and robust export orders from USA, Europe, UK and Middle East are driving the export business in the current fiscal and it is expected to get further momentum in the coming months. The company is also expanding its business network in over 120 countries from 100 currently.

AGL Showroom in MorbiAGL Showroom in Morbi

Asian Granito is the largest exporter amongst the organized players in India. Consolidated export of the company grew to around 17.6% of total revenues in H1FY21 vs 13.8% in H1FY20. India ranks 2nd and produces 12.90% of the global ceramic tiles output. The recent reduction of gas prices in the domestic markets has made Indian tile products more competitive in world markets and together with recent developments globally, share of India in the global trade is likely to improve considerably.

Says Kamlesh Patel, CMD, “Despite the challenges of Covid, demand from international markets has injected fresh blood in the Indian ceramic industry. Exports during the past three months have seen a considerable jump and are increasing due to the ongoing spat between USA and China, and all major players in the industry are working at a capacity of 80-85% due to the robust export orders.”

To further strengthen its international business and boost exports, Asian Granito has launched a 15,000 sq ft AGL Export House at Morbi, which showcases over 3000 products in all sizes, designs and finishes. Morbi accounts for more than 70% of the country’s tiles production with over 1000 manufacturing units in the zone. Trade partners and business communities across the globe regularly visit Morbi for business and trade.

Says Mukesh Patel, Managing Director, “Currently, many countries are looking at India for their requirements. With anti-china sentiments across the World and USA imposing heavy duties on tiles from China we anticipate huge export potential for Indian companies. The recent reduction in the gas price is also making Indian tiles more competitive in the World market and will be a major catalyst in export business. The move will reduce the total costs by 3-5% and help improve the margins and profitability of the overall sector in a challenging environment.” He informs that USA has imposed anti-dumping duty of up to 356% and anti-subsidy duties of up to 358.8% on Chinese ceramic tiles products. Duties on Indian tiles are only 8.5% which is expected to increase tiles exports to USA from India.

Kamlesh Patel & Mukesh PatelKamlesh Patel & Mukesh Patel

Asian Granito is also looking to engage with global players with an objective to make India a global manufacturing hub for tiles and sanitaryware and aims to provide end-to-end solutions including quality assurance, packaging, efficient supply chain management, and adherence to stringent compliance and ethical norms. In-line with this strategy, it has recently started catering to demand from Siam Cement Group (SCG), one of the largest cement and building material companies in Thailand and Southeast Asia. SCG has a presence in 21 countries including Indonesia, Malaysia, Vietnam, Philippines, Sri Lanka and others.

Asian Granito has 9 manufacturing units spread across Gujarat, over 300 exclusive showrooms, and 14 display centers across India. Its range of products consist of floor, wall, parking and outdoor tiles, including natural marble, quartz, porcelain etc. To leverage the synergies, the company has entered the sanitaryware market and has also launched CP Fittings and a faucets division in order to provide complete bathroom solutions. It has set a target to increase its retail touch points to over 10,000 and expand the network of exclusive showrooms to 500; and expects higher sales in the coming quarters due to its dominance in B&C class cities and a focused penetration in the market.
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