Business
Anand Mahindra Dubs This City as India’s ‘Bahubali’ of Business: A Rising Competitor to China in the Ceramic Industry
Anand Mahindra highlights Morbi, Gujarat’s global impact in ceramics, accounting for 90% of India’s production, but faces challenges like high energy costs and international trade barriers despite remarkable success.
Key Points
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Anand Mahindra spotlighted Morbi, Gujarat, in a tweet, highlighting its rise as a global hub for ceramic production. Spanning only 50 by 9 km, Morbi contributes to 90% of India’s ceramic output, with nearly 1,000 family-owned factories.
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Morbi’s ceramic industry competes globally, controlling 13% of the world’s production. Despite facing challenges like reduced demand and anti-dumping duties, the industry’s resilience underscores India’s potential to compete on a global scale.
- Issues like high energy costs and disrupted exports pose challenges. Manufacturers are asking for tax reforms and exploring new shipping routes amid restrictions, yet Morbi remains pivotal in India’s ceramic reputation, driven by its agile entrepreneurs.
In a compelling examination of India’s burgeoning small-town entrepreneurship, industrialist Anand Mahindra, Chairman of Mahindra & Mahindra, has lauded the transformative impact of Morbi, Gujarat, on the global ceramic industry. Through a recent tweet, Mahindra highlighted Morbi’s ascendancy as a key player, demonstrating how this small town has grown into a significant ceramic production hub. Spanning just 50 by 9 kilometers, Morbi accounts for an astounding 90% of India’s ceramic output. With nearly 1,000 family-operated factories, this town’s ceramic industry has thrived since the 1930s, proving its capability to compete with both China’s low-pricing tactics and Italy’s premium quality products.
Notably, Morbi’s efforts contribute to 13% of the world’s ceramic production. This industry, valued at billions of rupees, employs approximately 400,000 people, reinforcing the town’s economic significance. Mahindra’s praise for Morbi’s entrepreneurs emphasizes their role as “the ‘bahubalis’ of India,” illustrating how agile, small-town businesses are pivotal in competing internationally against giants like China.
However, despite its success, Morbi’s ceramic industry encounters significant challenges. The Times of India reports on the sector’s struggles with diminishing domestic and international demand. Manufacturers advocate for reduced taxes on gas consumption, suggesting a transition from VAT to GST, accompanied by input tax credit benefits, as a proactive measure against the financial strain from consuming around 3 million cubic meters of gas daily.
Further compounding these challenges are anti-dumping duties imposed by Saudi Arabia, Qatar, and Taiwan, with rates between 50% and 106%, which have adversely affected exports. Additionally, geopolitical trade restrictions, particularly those involving Iran, have forced manufacturers to seek more expensive alternative shipping routes to reach markets in Kazakhstan, Uzbekistan, and Azerbaijan.
Despite these hurdles, the resilience and ingenuity of Morbi’s business community remain unyielding, underscoring India’s ability to produce global leaders in ceramics from its small towns. This narrative of success serves as a testament to Morbi’s enduring spirit and potential to sustain India’s reputation as a global ceramic leader.
