Budget Expectation - Mr. Kamlesh Patel - Chairman and Managing Director, Asian Granito India Ltd

Mr. Kamlesh Patel - Chairman and Managing Director, Asian Granito India Ltd

"India ranks among the top 3 nations in the world in terms of tile production. The Indian Ceramic Tile industry is estimated to be of Rs. 23,000 crore of which 40% is organised while 60% is still the unorganised sector. The industry provides employment to more than 5 lakh people in India directly as well as indirectly.

Organised players are growing by 15-16% in spite of the slowdown for a month while the industry grew by 13% last year. However freight, supply and price of power & gas are the key cost-related issues that have a huge impact on the industry. Our expectations from the forthcoming budget are lowering excise duty, rebate on exports, reduction in overall raw materials & gas prices. Moreover, the government should also consider imposing sizeable anti-dumping duty on imports from China. Government also should expedite implementation of GST.

Increasing financial costs have been eating away the profits of ceramic players and hence hurting the industry. Despite an increased demand in the domestic market, the production of tiles has suffered steep fall owing to very large volumes of dumping from China. This has adversely affected the profit margins of Indian ceramic manufacturers there by pushing a number of smaller units to eventual closure."

Shares of ASIAN GRANITO INDIA LTD. was last trading in BSE at Rs.69 as compared to the previous close of Rs. 72.6. The total number of shares traded during the day was 17041 in over 188 trades.

The stock hit an intraday high of Rs. 74.95 and intraday low of 69. The net turnover during the day was Rs. 1193621.

Source : Equity Bulls

Keywords