Asian Granito India Ltd is Eyeing Exponential Growth From Export Business in FY21 Despite COVID
Asian Granito India Limited (AGIL), manufacturer of one of India's leading tiles brand is eyeing exponential growth from 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 in the current fiscal and it is expected to get further momentum in coming months. Company is also expanding its business network in 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.
Mr. Kamlesh Patel, Chairman and Managing Director, Asian Granito India Ltd said, 'Despite challenges of COVID, demand from international markets have emerged as a silver lining and injected fresh blood in the Indian ceramic industry. Exports during the past three months have seen considerable jump and are constantly increasing due to the ongoing spat between the USA and China. All 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.'
Further to strengthen international business and boost exports, company has launched 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 range including 3000 plus products in all sizes, designs and finishes at one place for the trade partners across the globe and aims to strengthen its presence in international markets. Morbi accounts for more than 70% of country's tiles production with over 1000 manufacturing units in the zone. Trade partners and business community across the globe regularly visit Morbi for business and trade.
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.
Currently many countries including US, Europe, Middle East have reduced imports from China post Covid and they 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,' said Mr. Mukesh Patel, Managing Director, Asian Granito India Ltd.
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 presence in 21 countries including Indonesia, Malaysia, Vietnam, Philippines, Sri Lanka and others.
- Inaugurated 15,000 Sq feet 'AGL Export House' at Morbi to strengthen international operations.
- Anti-China sentiments, Reduction in gas price, strong export orders to drive the export business.
- Export business stands at around 17.6% of total revenues in H1FY21 vis-a-vis 13.8% in the H1FY20.
- Company set to increase its retail touch points to over 10,000, Exclusive showrooms to 500 plus.