Asian Granito India eyeing exponential growth from export business in FY21

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

Asian Granito is the largest exporter among organised players from India. Consolidated export of the company grew to around 17.6% of total revenues in H1FY21 vs. 13.8% in the H1FY20. For the six months ended September 2020, company reported exports of Rs. 83.2 crore.

India ranks 2nd and produces 12.90% of the global ceramic tiles output. Recent reduction of gas prices in domestic markets has made Indian tile products more competitive in the world markets and together with recent developments globally, share of India in the global trade is likely to improve considerably.

Kamlesh Patel, CMD, said, "Despite challenges of Covid-19, 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 constantly increasing due to the ongoing spat between the USA and China. All the larger players in the industry are currently working at a capacity of 80-85% due to robust export orders from USA, Europe, UK and Middle East markets."

The company has launched a 15,000 sq ft AGL Export House at Morbi - India's hub for ceramic tiles & sanitaryware. The export house unveils the entire range of tiles, sanitaryware and bathware, including 3000 plus 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 community across the globe regularly visit Morbi.

USA has imposed an anti-dumping duty of upto 356% and anti-subsidy duties of upto 358.8% on Chinese ceramic tiles products. Duties on Indian tiles are only 8.5% which expect to increase tiles exports to the USA from India.

Mukesh Patel, MD, said, "Currently many countries including USA, Europe, and the Middle East have reduced imports from China post Covid and are looking at India for their requirements. With this, we anticipate a huge export potential for Indian companies. The recent reduction in the gas price is also making Indian tiles more competitive in world markets 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."

Asian Granito India one of India's leading tiles brand

The company is also looking to engage with global players with an objective to make India a global manufacturing hub for tiles and sanitary ware 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, AGL 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 India tiles include ceramic floor, digital wall, vitrified, parking, porcelain, glazed vitrified, outdoor, natural marble, composite marble, quartz, etc. The company has entered sanitaryware recently with the launch of CP Fittings and Faucets division. It has also set a target to increase its touch points and expand its network of showrooms to 500. The company expects higher sales in coming quarters due to its dominance in B&C class cities and focused penetration in the market.
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