Costs Escalate For Morbi’s Ceramic Units Amid Buoyancy In Exports: ICICI Securities
An employee packages tile pieces for shipment. (Photographer David Paul Morris/Bloomberg)

Costs Escalate For Morbi’s Ceramic Units Amid Buoyancy In Exports: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Morbi’s exports of ceramic tiles continue unabated with November 2020 crossing the Rs 10 billion mark for the fourth successive month.

Amid the rising exports, Morbi’s costs too have risen due to -

1. increase in gas prices by Gujarat Gas Ltd. with-effect-from December 24, 2020 with discounts being slashed from Rs 4.5/ standard cubic meter to Rs 0.5/scm,

2. sharp increase in inland transportation costs, and

3. surge in sea freight rates amid container availability woes.

While Morbi players’ increasing impetus on exports would sustain market share gains for the top branded players, the recent surge in gas and freight costs would dissuade them from disrupting prices in the domestic space in the near term.

Click on the attachment to read the full report:

ICICI Securities Morbi Ceramic Tracker.pdf


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