INDIA CERAMIC SANITARYWARE MARKET ANALYSIS

Market Challenges And Opportunities

India Ceramic Sanitaryware Market - Restraints

• Slow growth in the residential real estate industry

Slow growth in the residential real estate industry in India is expected to hinder the market growth of ceramic sanitaryware. The residential real estate industry in India is facing several challenges such as financial stress on developers, high unsold inventory, and delayed delivery of projects. Such factors are projected to negatively impact the market growth of ceramic sanitaryware in India.

• Lack of innovation and modernization in the sanitary product

Lower rate of replacement in the sanitary product due to a lack of innovation and modernization in the sanitary product is expected to hamper the market growth of India ceramic sanitaryware. Bath fittings products offered by top branded companies have a warranty of at least 10 years due to which consumers are less inclined to replace bath fittings as it requires high labor charges. Thus, low the replacement rate of bath fittings is a major factor expected to hinder the growth of the India ceramic sanitaryware market.

• Rising government initiatives for improving sanitation facilities in India

Rising government initiatives for improving sanitation facilities in India is projected to foster the market growth over the forecast period. For instance, in December 2016, Union Minister for Health & Family Welfare Shri J P Nadda and Union Minister of Human Resource Development Shri Prakash Javadekar introduced a ‘SwachhSwasthSarvatra’. SwachhSwasthSarvatra is a joint initiative of the Ministry of Health and Family Welfare and the Ministry of Drinking Water and Sanitation to achieve better health outcomes through improved sanitation and increased awareness and healthy lifestyles.

India Ceramic Sanitaryware Market - Growth Drivers

• Increasing per capita disposable income of the Indian consumer

Increasing per capita disposable income of the Indian consumer is a prime factor fuelling the market growth of ceramic sanitaryware. Indian consumers are spending more on luxury products and focusing more on the good feel and look of bath fittings. For instance, the housing program and the Pradhan Mantri Awas Yojana program helped to increase market demand for ceramic sanitary ware in both urban and rural areas of the nation. The housing programs created to construct 1 crore pucca homes in rural regions led to an increase in demand for ceramic sanitary ware on the market.

Market Opportunities    

• Increasing number of mergers and acquisitions for developing innovative sanitaryware product in India

Increasing number of mergers and acquisitions for developing innovative sanitaryware products in India is projected to offer lucrative opportunities to the market over the forecast period. For instance, in April 2017, bathroom products manufacturer Jaquar & Co Pvt. Ltd acquired a sanitaryware factory from Euro Ceramics Ltd for Rs 100 crore ($15.5 million). The plant, located in the Bhachau area of the Kutch district in Gujarat is spread over 17 acres. Jaguar operates five factories in India and one in South Korea. Therefore, the rising number of such merger & acquisitions is projected to propel the market growth.

• Growing demand for twin-flush water closets

Growing demand for twin-flush water closets is expected to augment the market growth over the forecast period. For instance, in February 2018, Parryware introduced power flush toilets and Shimmer collection for contemporary bathroom spaces. The products are exclusively designed for modern-day bathroom spaces and ideal fit for all bathrooms. Therefore, rising demand for such advanced product is expected to boost the market growth over the forecast timeframe.