Cracks appear in Guj ceramic industry as tariffs hurt

Khimjibhai Kundaria, the chairman of Gujarat-based Wintel Digital Vitrified Tiles and Wintel Surfaces, has only one aim these days—reworking his export strategy.

- Maulik Pathak

His operations in Morbi town’s Nava Jambudia area rely entirely on exports, with 50% of shipments going to the US and the other half to West Asia and Europe.

‘American buyers have pulled back nearly all the orders since the US tariff announcements, he said.

“Buyers have stopped orders, exports are down, and the bigger effects are still to come,” said Kundaria, whose company ranks among India's top five ceramic exporters to the US.

The US is among the top three markets for the Indian ceramic industry and one that has helped build this area into an export hub over the past two decades. The Morbi cluster exports around ₹1,200-1,500 crore worth of ceramics to the US annually. It produces 80% of India’s ceramics, feeding a global appetite across 150 countries.

But the tariffs that came into effect last month precipitated a crisis. Kundaria is already sketching new trade maps, hoping to pivot to Europe, West Asia, and East Asia. “Factories will function but they will have to change markets,” he said.

It's not easy. New distribution networks must be built. Product specifications need adjustment for different regional standards. Years of relationship-building in the US must now be replicated across continents. It takes time, and money, all the while paying hundreds of employees.

Down the road in Ghuntu, Jitendra Aghara is in a similar conundrum. The owner of Simpolo Vitrified Tiles has a turnover of ₹1,850 crore and 3,000 employees. “What happened 20 years ago in Italy and 10 years ago in China is now happening with the Indian ceramic industry,” he said, referring to how rising production costs and protectionist measures are pushing once-dominant exporters to lose ground while new hubs emerge.