Tiles of Transformation: Exploring India’s Ceramic Tile Industry

India’s ceramic tile sector is one of the country’s brightest manufacturing success stars. Transforming from humble pottery clusters, it has matured into high-technology, export-driven manufacturing clusters for global markets. This evolution mirrors a wider economic trend in which old-school craftsmanship blends with modern tech, local entrepreneurship goes global and public policy joins private enterprise, all at one time. Now, ceramic collections span small family businesses to large corporations, serving local homeowners renovating their homes to overseas developers creating entire cities.

At the heart of this revolution is Morbi, Gujarat, a town now famed for worldwide ceramic perfection. This industrial town manufactures up to 90% of India’s ceramic tiles, with over 1,800 manufacturing facilities running round the clock in various shifts. The implementation of cutting-edge technologies such as digital printing and 3D visualization has transformed both manufacturing and customer experience.

India is the second-largest producer, consumer and exporter of ceramic tiles globally as of 2024. India’s ceramic tile industry reached a market value of Rs. 62,000 crore (US$ 6.99 billion) in FY24, with domestic consumption of approximately 2,000 million square meters worth about Rs. 42,000 crore (US$ 4.73 billion) and export volume of 590 million square meters worth Rs. 20,000 crore (US$ 2.25 billion). This success is built upon sound pillars of technological innovation, diversification and continuous support from governments, leading towards digital transformation and sequential growth.

Industry performance and key statistics

The Indian ceramic tile industry achieved a market size of Rs. 62,000 crore (US$ 6.99 billion) in FY24, with domestic demand of more than 2,000 million square metres (Rs. 42,000 crore (US$ 4.73 billion) in value terms) and exports contributing 590 million square metres of area (Rs. 20,000+ crore (US$ 2.25 billion) in value terms). Revenue growth of FY25 was projected at 7-9%, based mostly on domestic demand robustness in spite of exporting issues.

Sanitaryware segment also provided sturdy growth, with a market of around Rs. 8,000 crore (US$ 901.80 million in 2023-24 and is further projected to achieve 10-12% CAGR in the subsequent five to six years. It is being fuelled by schemes of the government like Swachh Bharat Abhiyan and Atmanirbhar Bharat, as well as higher disposable incomes and transition among consumers for high-end as well as designer products.

Global market location and production information

India remained the second-largest producer of ceramics in the world with 2,450 million sq. m production in 2023 (15.4% of world production), up by 6.5% from 2022, thus becoming the largest growing large production country. It consumed domestically 1,700 million sq. m (10.9% of world consumption), of which it exported 589 million sq m, becoming the world's second-largest exporter.

Up to 2024, India's ceramic tiles sector had an export value of Rs. 23,216 crore (US$ 2.64 billion) and an average unit value of Rs. 394.73 (US$ 4.45) per square metre with continued strong competitiveness in overseas markets. Asian markets consumed 42% of India's shipments, but strongest growth was in non-Asian markets, with Africa achieving 68.8% volume growth, the European Union achieving 60 million square metre (+75%), and significant volume increases in North America, and South America.

Digital retail revolution and customer experience

The consumer experience is undergoing dramatic transformation through digital innovation. KAG Tiles exemplifies this evolution with comprehensive e-commerce platforms featuring sophisticated 3D visualisation tools. The KAG Tile Visualiser enables customers to preview tiles in their actual spaces using real-time 3D simulation, significantly reducing purchase uncertainty.

Advanced features include a protected payment gateway, EMIs and full product catalogues, catering both retail customers as well as bulk buyers such as builders, contractors and architects. Future upgrades will also include AI-driven recommendation on products and AR/VR features, which will revolutionise the purchase experience further.

This digital transformation addresses fundamental challenges in tile purchasing, i.e. the difficulty of visualising final results. While traditional showroom visits remain valuable, they cannot replicate specific lighting, colours and spatial characteristics of each customer's unique environment. Digital visualisation bridges this gap while expanding market reach.

Environmental stewardship and sustainability

Environmental performance and industry standards

Environmental responsibility is taking centre stage as more entrepreneurs embrace sustainable business conduct. A 2024 holistic analysis of five ceramic firms based in Morbi highlighted differences between environmental disclosure practices and performance measures, demonstrating both improvements and opportunities for improvement across the sector.

The evaluation investigated key environmental parameters such as energy usage (electricity and fuels), water consumption, GHG and other pollutant emissions (SO2, particulates, etc.). Divergent maturity between environmental reporting and performance management was witnessed across companies, which reflected a lack of standard techniques and industry-wide best practices.

Energy management is particularly important due to the industry’s dependence on high-temperature kilns. The cluster currently operates using a mix of coal and natural gas, with respective consequences for both cost of business operations and environmental footprint. Businesses investing in energy-efficient technologies, such as alternative fuels, are able to reduce both costs and emissions.

Sustainability initiatives and policy support

Gujarat's policy framework includes specific support for environmental improvements through quality certification assistance, technology acquisition programmes and process upgrade incentives. These measures help companies adopt cleaner technologies while managing associated investment costs.

Simpolo Ceramics is implementing eco-friendly processes and modern automated systems at its new manufacturing facilities, reinforcing its reputation as a leader in environmentally responsible manufacturing. Both new plants in Malia and Tirupati will be equipped with sustainable production technologies.

The Integrated Ceramic Park initiative concept enables shared infrastructure for waste management, water treatment and energy supply, potentially improving environmental outcomes through economies of scale and specialised expertise.

Market opportunities and growth drivers

Domestic market expansion potential

India’s domestic ceramic tiles market provides tremendous growth prospects, backed by urbanisation, infrastructure development and changing consumer preferences. The Tier-2/Tier-3 cities segment is ‘data rich’ and offer the strongest prospects, as booming incomes along with new age fashion styles are encouraging consumers to upgrade to premium tiles from plain vanilla ones in T1 Cities.

Per capita consumption growth: According to CEO of RAK Ceramics India, Mr. Anil Beejawat, India's per capita consumption remains at 0.50 square metres per person compared to China’s 2.6, Europe’s 5-6 and Brazil’s 3.4 square metres per person. Rising disposable incomes and 40 million units of housing shortage represent significant growth potential, with domestic market growth expected at 15% driven by these factors.

Premium segment opportunities: Simpolo Ceramics reports strategic positioning in the premium segment, expecting increased demand as India's economic growth continues and consumer preferences evolve towards higher-quality products. With India’s Gross Domestic Product (GDP) expected to rise by 6.6% annually over the next five years, the company is intensifying emphasis on premium market segments.

Export market diversification

While traditional export markets face challenges, opportunities exist in emerging markets across Asia, Africa and Latin America. Simpolo's analysis indicates that India's share of global ceramic production is expected to grow from 15.4% to 18.3% by 2028, supporting continued expansion through innovation and quality focus.

The Belt and Road Initiative and infrastructure development programmes in developing countries create demand for construction materials including ceramic tiles. Indian manufacturers' combination of quality, design capability and cost competitiveness positions them well for these markets.

Technology and innovation opportunities

Product innovation: Simpolo Ceramics has introduced seven new collections for 2024-25, including Alchemia, Sparko and Venitto featuring POSH+ surface with anti-bacterial properties, and Basaltino series with StrongX surface for strength and versatility. These innovations demonstrate the industry's commitment to application-driven solutions across premium segments.

Digital Transformation: The success of 3D visualisation platforms and integrated payment systems demonstrates strong market acceptance of digital innovations. Companies implementing AI and machine learning applications for demand forecasting, production optimisation and personalised customer experiences can gain significant competitive advantages.

Conclusion

India's ceramic tile sector is an example of the transformation that has taken place in Indian industry. A transition of traditional skills into world-class manufacturing facility using technology and innovation with appropriate policy support and entrepreneurial spirit. It is an outstanding achievement for the sector, which has become the second-largest producer and consumer globally, and has emerged as the second-largest exporter in a short time period.

The industry’s structural virtues give a base to support longer-term growth. The robustness of the domestic end-market, underpinned by urbanisation and growing consumer expectations, provides a steady platform for growth. Policy settings help to create enabling environments for innovation and scale development, in combination with public support including targeted incentives and infrastructure investments.

With the industry increasingly adopting digital technologies, from manufacturing automation to customer experience improvement, it is on a strong footing for further competition. Green initiatives are still emerging, but the rise of environmental responsibility coupled with responsible growth is apparent.

One unknown for companies that want to succeed in the changing landscape is how they will balance domestic market expansion with new export opportunities; operational efficiency improvements with investments in digital and Internet of Things (IoT) deployments; competitive positioning against strong cross-border rivals while preserving cooperative cluster value offerings; and traditional strengths while undergoing digital transformations.

The trajectory of evolution in the ceramic tile industry goes on, only this time its entrepreneur engine and innovative technology road-builders are those who turned Morbi into the world-class powerhouse. Strategic concentration and consistent public policies, sustained investment in technology and strong human resources keep this industry on a growth path despite the challenging market conditions and new customer demands.

The story of the industry shows that, with imagination and perseverance pursued in a disciplined manner, the existing traditional, campus-style industries can be internationally competitive and contribute to national development and international trade expansion. The ceramic tile industry in India excels through its resilience, expertise and world-class manufacturing. This journey to the top has been built on cultivating an environment for innovation, efficiency and quality, making India a pioneering force in the global marketplace.