Nearly 20% of India's tile manufacturing plants could shut down in the coming years due to rising gas prices, Somany Ceramics CEO Abhishek Somany said in an interview this week. The increase in energy costs, driven by the ongoing Middle East conflict, is expected to accelerate consolidation in the sector, impacting inefficient producers across the country.
Speaking at Somany Ceramics' Noida office, Abhishek Somany explained that the surge in gas prices has significantly raised operational expenses for tile manufacturers. This cost pressure is forcing smaller and less efficient plants to either shut down or merge with larger players. Somany highlighted that the industry is already witnessing early signs of consolidation as companies adapt to the new energy cost environment.
The tile manufacturing sector in India relies heavily on natural gas for production processes, making it vulnerable to fluctuations in global energy markets. The current geopolitical tensions in the Middle East have pushed gas prices upward, squeezing margins for many manufacturers. This trend mirrors consolidation patterns seen in other energy-intensive industries facing similar cost challenges, potentially reshaping the competitive landscape of India's tile market.
Somany Ceramics, one of the leading tile manufacturers in India, is navigating these challenges while focusing on operational efficiency. The company’s stock performance and strategic moves in response to the energy crisis will be closely watched by investors and industry participants alike, as the sector adjusts to sustained higher gas prices.