Sanitary ware industry
Sanitary ware Industry in India and the world is witnessing unmatched growth due to the high demand of bath ware & kitchen ware products which includes a wide array of products like washbasins, water closets, bath tubs, toilet bowls, kitchen faucets etc. The industry has been growing mainly due to being easy to maintain, hence making them cost-efficient. The Indian consumer’s rapidly growing appetite for style and aesthetics in their homes and outdoor spaces is driving demand for this industry.
Main sectors where the demand is expected is from consumer sectors such as hospitals, hotels, educational institutes, industries, housing and other public places.
The industry is challenged in managing its shifting costs in the manufacturing of ceramic products which leads to significant costs affecting profits. The products cannot be easily replaced, only if there is a renovation of a building is being done, resulting in revenue growth being slower. Other challenges also restraints in the growth of the industry, such as environmental damage.
Current scenario of Sanitary ware Industry in India and the way ahead.
The Indian tiles, sanitary ware market was worth US$ 5,945 Million in 2017. The market is further expected to reach 10,480 Million US$ by 2023, at a CAGR of around 10% during 2018-2023.The growth has been increasing due to increase in consumer’s disposable income, rapid urbanization, rapid increase for housing and changing end user preferences. Industries like hospitality and tourism have increased the demand for ceramic sanitary ware products. The growth is further boosted by initiatives taken by the government such as Swachh Bharat to improve and encourage sanitation in the India especially in the rural and underdeveloped areas.
In terms of geography, the southern region of India dominates the market in terms of consumption. Higher literacy rates and increased awareness for need of sanitation in this region is the reasons behind this. Increased growth in hospitality, Special Economic Zone, Residential and Healthcare sectors in the metropolitan cities of India, have led to increasing demands with the highest share in the market.
There are two types of players who manufacture sanitary ware in India. One is the unorganized manufacturers who mainly serve to the masses or consumers with low‐income. The other is the organized players cater to the premium market segments. The market is further bifurcated into prices like low end, mass market, premium and luxury. 60% of the market is dominated by the organized players whereas the unorganized industry contributes to less than 40% of the market. India is also emerging as one of the popular manufacturing hubs for this industry due to lower labor costs and availability of raw material. This has led many MNCs to set up their manufacturing facilities in India.
In terms of products, wash basins, cisterns and water closets contribute the highest revenue share in this market. It is expected that with more awareness about adequate sanitation facilities, demand for products such as sinks, bidets, pedestals etc., will increase in the coming years.
It is thereby evident that most of the industry is going to witness a lot of investment in future.