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then (3) lifting and transportation, (:) inventory management, (;) cutting the stone into slabs and tiles, (6) polishing, and finally, (<) distribution to end users.
raw material which refines it into a final product. India enjoys abundance and high quality of the raw material, yet the production process in India has still a way to go to reach the advanced levels enjoyed by the top producing countries. evertheless, the marble industry in India is growing from one day to the other and it is very valuable studying and analy!ing the market characteristics of this industry in India. In this market, we have varying types of competition" quantity #capacity$ competition exists where the suppliers that can provide big quantities and can operate their own quarries have a clear edge over others. %owever, there is also a tough price competition. &mall suppliers sometimes dump the market by lowering their prices severely, just for the sake of selling their product and generating cash. Therefore, bigger marble producers on scale do not always enjoy a '( price advantage even though their average operating cost may be lower. )lso, market competition is highly differentiated by quality #vertical differentiation$. This depends on target demand and whether the end user is local or production is done for export purposes. In addition, hori!ontal differentiation also exists #according to type and color of marble produced$. *sually, hori!ontally differentiated competition is for suppliers who target the elite market.
There is hardly any seasonality of demand. Marble is required all year long, although it follows very much the business cycle of the construction sector. If the construction sector witnesses a boom, the marble industry is always expected to follow and vice versa. Moreover, demand is usually higher in summer, as construction work is more intense in summer than in winter, for several reasons among which are that days are longer and the weather is more predictable.
Marble is an e(port oriented item. During 9BB<#BD, the country earned around A3; million from the marble and its products e(port, "hile in 9BB6#B<, it "as A99 million. he 0mall and Medium 4nterprise Development +uthority (0meda), is ta!ing !een interest in the development of this industry. /n addition, 0meda has planned to set up a modern technical training institution to provide assistance in establishment of marble industry and trained its "or!ers. his "ould not only ensure availability of s!illed local labour for the industry in re%uired numbers, but also help it to compete "ith the marble products in international mar!et. @orld"ide natural stone e(traction is estimated at 88;B million ton per year. +nnual production after deduction of "aste and cutting losses amounted to about D9B million, referred to a slab thic!ness of 9 cm. he total production value "as estimated at A:B billion.
he global gro"th too! place outside 4urope. China no" e(tracts around t"ice as much natural stone as the previous mar!et leader /taly. /ndia also overtoo! /taly last year for the first time. he most important "orld importer of finished goods is the 10+. 0tone products "orth A8.<9 billion "ere imported in 9BB3, 8D.3 percent more than a year ago. he most important supplier "as /taly, "hich increased its 10 e(ports by <.9 percent to A;3; million "ithin t"o years. /ndia-s contribution to the "orld stone mar!et "as 8B percent and it produces 9< percent of the "orld-s stone. he annual gro"th "as about 8; percent and it is no" the third largest natural stone producer in the "orld, after /taly and China, and plays an important role in "orld trade of natural stones. China has become the important player of "orld mar!ets in marble and granite tiles especially in gray, pin! and other light colors. /ts fast increasing presence has sharply accelerated the trend of lo"er prices. China e(ported natural stones and its products for more than a billion dollar last year. he natural stone e(ports increased by almost 9B percent from E9: million dollars to over 8.8 billion dollars in 9BB3. /talian natural stone e(ports have increased by ;.6 percent in %uantity and 9.< percent in value terms in the first half of 9BB:. he total e(port %uantity of marble, granite and other processed solid stones reached 8.;3 million ton in the first si( months of 9BB:, compared "ith 8.:; million ton in the first half of 9BB3. he e(port value rose from <E9 million euros to D83.8 million euros. he gro"th "as attributed mainly to more e(ports of granite and granite products. During the last ; years production of marble "as as follo"s?
echnical advancement in the last seventy years had increased the "orld production and consumption of dimensional stones to :E.; million tons. Due to increase in "orld consumption the granite and marble trade reached 10A 3.; billion mar! in 9BBD. /taly is the maFor player in the global mar!et and e(ported 3D percent of the dimensional stone-s e(port, "hile its imports "ere 8D percent of the international imports. Other maFor e(porters include 0pain, ur!ey and *ortugal. Other maFor importers "ere 10+, China, )ermany and =ong Cong.
/ndia has been the main e(porter of granite and sandstone for the five years. /ts e(ports have declined by :6 percent in five years but it managed to capture 8;.9 percent of the granite trade in 9BBD. 5or"ay has a share of 89.: percent and /taly captured E.8G of the mar!et. /taly has been the largest importer of granite and sandstone for the last five years and accounted for 3E.:G of the total imports "ith a value of 10A :8; million in 9BBD. During the E months of 9BBD#BE e(port of marble and granite from *a!istan increased by 8D.B< percent. =o"ever, in 9BBD granite accounted for 10A D; thousand in foreign e(change earnings, "hich "as appro(imately B.B8 percent of global granite e(ports. @hile the share "as B.B3 percent in 9BB:, e(ports "ere 10A 9BD thousand.
Marble and granite processing industry is typical in nature, its efficiency is dependent on the %uarry products. /n most of the above countries processing is done on highly sophisticated machinery for %uality production. /n *a!istan "here fe" units are using these machines "hile rest of the industry uses locally fabricated machinery by fe" e(isting manufacturers in the country. hese units develop machinery by reserve engineering (copying of foreign machines), "ithout even doing the basics of machinery designing. /talian processing industry is far ahead of the "orld "ith locally manufactured machinery of high standards. Many countries have entered into collaboration arrangements "ith /taly and other leading stone machinery manufacturers in )ermany, 10+ and 5etherlands. Marble and )ranite is the si(th largest mineral e(tracted among coal, roc! salt, lime stone, china clay, dolomite, fire clay, gypsum, silica sand etc. 0ince 8EEB, mining 6 %uarrying has consistently contributed B.; percent to the )ross Domestic *roduct. /n *a!istan marble is processed in more than 8,6BB units in the country including 6D; small and medium si2e units. hese units have been defined in three categories according
to their si2es, small, medium and comparatively large, but not up to the international level. 1nfortunately the processing strength for granite in the country remains unsatisfactory. here are only nine units, of "hich four are operational. +ll of these units have an average investment of over .s.9B million "ith gang sa"s, bloc! cutters and polishing heads. Due to hardness of granite, production capacity of granite processing units is lo" as compared to marble. +verage production of these units is 6,BBB to D,BBB s%Hft per month per unit. Most of the units even those "ith good %uality machinery setups are unable to produce high %uality products because of substandard ra" materials and lo" s!ill level of the "or!ers. /nternational buyers allo" variation of B.;mm for tiles and 8.Bmm for slabs. *revailing industry average variations are too high and do not match to the international standards. 0eeing vast opportunities in these sector /talian businessmen have started loo!ing to"ards *a!istan for the e(ploitation of its marble and granite reserves to !eep their marble industry alive as after about 9; years the /talian reserves of this mineral "ealth "ould e(haust.
/taly is pioneer in introducing mining technology by e(tensive research and development$ mining is carried out on modern lines in most of the countries e(cept for a fe" developing countries, including *a!istan. 0tandard %uarry "astage in the "orld is ta!en at ;B percent of the gross produce$ ho"ever, in *a!istan this %uarry loss is estimated 68 percent to <3 percent. /taly had 9,;BB years history of marble industry, and had been a leading nation in the dimensional stone business for centuries it has a long base of model mines "ith the highest global average for %uarry production and state#of#the art processing industry. /taly is the leading manufactures of stone products, materials and technology, "hile *a!istan is one of the fe" countries endo"ed by nature "ith large reserves of marble, ony( and granite. herefore, its industry can be benefited from /taly's e(perience. /n *a!istan only a fe" unit are e%uipped "ith proper e%uipments and produce %uality marble and marble products. )enerally *a!istani finished goods are of poor %uality. *rocessing "astage of :; percent to ;; percent has been estimated. he primitive mining techni%ues e(isting in *a!istan do not allo" e(traction of standard bloc!s$ a maFor factor for the decline in *a!istan-s marble industry are slo"do"n in the construction industry, lac! of %uality production and an inconsistent and irregular supply of ra" material. he e(traction in *a!istan comprised boring of holes in the bedroc!, "hich "ere filled "ith e(plosives to blast the bloc!, "hich results not only in a high "astage (up to <3 percent), but also in smaller stone si2e, "hich substantially reduces the price, "hich is directly proportional to si2e. he e(traction of marble in *a!istan "as yet to be developed and value#addition to all marble products can be done "ith the help of modern machinery from /taly. /t is considered that *a!istan is the right place for foreign investment, in mining as "ell as the training of manpo"er involved in the marble sector and /talian businessmen can avail this opportunity.
*roduction areas
Marble deposits are "idespread in /ndia? concentration in states of .aFasthan, )uFarat, Madhya *radesh, =aryana, and +ndhra *radesh. 5e(t )uFarat also produces some very fine marble follo"ed by Madhya *radesh. .aFasthan is the main depository of marble$ accounts for over EBG of total marble production in /ndia J88BB m tonsK. 5e"er varieties of marble are being developed in 3ihar, Lammu 6 Cashmir, Maharashtra, 0i!!im, and 1ttar *radesh 6 3engal.
*roduction echnology
/ndustry has evolved into the production and manufacturing of bloc!s, flooring slabs, structural slabs, calibrated # ready to fi( tiles, monuments, tomb stones, sculptures, artifacts, cobbles, cubes, pebbles and landscape garden stones.
+dvent of sophisticated mining machinery 6 ne" mining fields has led to increase in marble production. +lthough /ndia produces machinery, there is an e(cellent opportunity for e(porting machineries for "or!ing stone? cutting, sa"ing, grinding and polishing.
/ndo#/talian rade
/taly imports bloc!s and after cutting and processing e(ports these all over the "orld including /ndia. /taly imports large amounts of granite from /ndia around M 69 million as compared to imports of Marble "hich amount to only M ; million (inclusive of bloc!sHtilesHcrudeHtrimmed)K. he "hole "orld economy is facing the recessionary trend since past fe" years. his has affected most of the industries, but the commodities of necessity. +s marble is not an essential commodity, marble and related industries have faced a decrease in demand due to decreased purchasing po"er of consumers.
/mport statistics indicating opportunities for /talian companies? J7inished, trimmed, tilesHmonumental bloc!sK
here are certain points to bear in mind regarding these licenses?# 8. hese licenses are not applicable to 8BBG 4(port Oriented 1nits or 1nits in 0pecial 4conomic Nones that are eligible to import rough marble bloc!s and slabs for processing e(port orders directly or as deemed e(ports. 9. + passboo! is maintained for the imports and the importer has to file monthly returns "ith the licensing authorities to !eep record of the amount of imports and balance available. 3. /mport of Dolomite is banned against these licenses. herefore "hat is !no"n as hassos @hite Marble cannot be imported in rough bloc!s or slabs form other than by 8BBG e(port oriented units. 7or domestic consumption in /ndia, hassos @hite marble has to be imported in cut and polished form only. /n case an eligible importer fails to use his full entitlement he sells his license in the open mar!et. Currently the rate for these licenses is appro(imately .s.8B, BBB # .s.88, BBB per ton depending on the demand H availability. he floor price of imported marble (the minimum import price) should be not less than 10A39; per ton c6f for bloc!s and 10A;BB per ton c6f for slabs. Marble manufacturers associations have made a representation to the licensing authorities to revie" the licensing regime.
01**&> O7 M+.3&4
.aFasthan has been besto"ed "ith huge reserves of marble. 0o far there is no problem as such of shortage of supply of marble in the state. 4stimated reserves of the state are 88BB million tons, "hich are more than E8G of the total marble reserves of the country. he present hard times faced by the industry in the state are in fact a result of imbalance of demand and supply of marble in the mar!et. &ured by the high profit margins of the trade, several entrepreneurs have entered in the industry. @ith the advent of modern technology in the past fe" decades, the production of marble has increased li!e any thing. he cost of production has come do"n and the speed and %uality of production have improved a lot. Moreover, the reduction in "astage has also resulted in increased production. +ll this resulted in supply of huge surplus to the demand in the mar!et.
D4M+5D O7 M+.3&4
/t is a "ell !no"n fact that marble no" has become a thing of necessity, rather than a lu(ury. Marble has no" become the cheapest and the best option for the flooring of the building constructions besides the other uses. Demand of marble has gro"n steadily in the past fe" decades, although the supply of marble in mar!et is much more than the demand. Table #4 gives the year "ise production data of marble since 8E;B. F(*ure sho"s the chart on the basis of these figures. + trend line has been dra"n on the basis of these figures and its e%uation has been derived to "or! out the future figures. /n this chart the figure of 8E;B and 8E;; are not ta!en into consideration as at that time, the mining and processing activities "ere very crude and the demand of marble "as very limited so the figure derived "ith those data might give misleading results. +s is evident from the chart,
P
the industry is having an e(ponential gro"th rate. he impressive trend line sho"n in the graph is in fact a modest representation of the gro"th rate of the industry. /f "e dra" a trend line on the basis of production figures of last 8B years, the trend line "ould be much steeper. Table #45 Year67(se Nu,ber &+ Leases0 %r&du't(&n ) Re8enue &+ Marble (n Ra9ast3an (#:/4 T& ;444!$ S$N& Year N&$ &+ leases %r&du't(&n (n Re8enue (n .444 T&ne .444 ru<ees Marble = *reen >$L$ ,arble 8. 8E6B QQQ QQQ 8<.69B 88<.DDB 9. 8E6; QQQ QQQ 6.688 5H+. 3. 8E<B 86 QQQ 3B.3BB 5H+. :. 8E<; ;B QQQ ;6.:BB 5H+. ;. 8EDB 66 QQQ 63.:9B 6<E.6BB 6. 8ED; 986 QQQ 83E.BBB 89<.3BB <. 8EEB QQQ QQQ 968.EBB :E;;.8BB D. 8EE; QQQ QQQ <86.<BB 386E6.DBB E. 9BBB 3:<3 QQQ 8;8:.6BB 88<<E;.9B 8B. 9BB; 3<<; <ED 3B93.E6B 386<BB.BBB 88. 9B8B 39:3 D:B :9<D.63B ;;;8<<.;;8 +part from this change in the living styles and the preferences of common men are also instrumental in increasing the demand of marble in the past three decades.
"ell by the developed nations of the "est. overall e(ports from the country.
he 0eptember 88, 9BB8 attac!s on @orld rade Centre, in 5e"#>or! City have also impelled the authority's "orld over, to rethin! about the constructions of high rise buildings. 0ince then, there has been do"n fall in building construction activities in "estern countries. Ot3er Marble %r&du'(n* Nat(&ns his is yet another reason for decreased e(ports from /ndia. Other countries li!e China, /taly, )reece, 0pain etc. are not only producing good %uality of marble, but they have shelved their prices too, in the past fe" years. here is much hype in the trade circles that "ith the ingress of O)lobal +greement on rade and ariff' ()+ ) and R@orld rade Organisation' (@ O) the entry of the imported marble in the country "ill adversely affect the marble industry of the state. 3ut in fact the systems are going to help the marble industry of the state rather than harming it.
here are many reasons, "hich ensure that the imported marble can not compete "ith the /ndian varieties on the price front. 0o largest sector of /ndian buyers that is the middle class of the country "ill remain a safe mar!et for the /ndian producer. /n +merica largest numbers of anti dumping charges after China are against /ndian companies. 0o the "estern countries are more afraid of prices of our products than "e are of theirs.
hese systems "ill increase the mar!et of our mar!et. 4very one do agrees that marble varieties of .aFasthan are "orld class and some of them are uni%ue to .aFasthan only. Dimension stones being of natural occurrence are available at very fe" places in the "orld. +t many countries even if marble deposits are available these are not being mined either due to lac! of infrastructure facilities, lac! of capital in the underdeveloped nations or due to environmental over a"areness, giving no cognisance to such industries in the developed nations. 0o @ O and )+ are going to help the Dimension stones industry of /ndia very much if not to the other industries. More over, as a se%uel to that /ndian Dimension stones processing industry "ill get more "or! as than they can process marble from some countries and resale it to other countries. China is doing this practice since past many years and has been highly benefited from it. +long "ith easier import of foreign goods in the /ndian mar!et, these schemes also ensure similarly easy e(port of /ndian goods to foreign mar!ets. 0o the tempo created in the industry about the repercussions of these schemes is a short#sighted interpretation of these. L(?(n* &+ t3e 'ust&,ers5 /t is a fact that the li!ing of the customers for stone cladding has increased dramatically in the past three decades. Main reasons behind this are heavy production of Dimension stones ma!ing availability of these much easier and affordable. Mechani2ation has been instrumental in the development of this industry in the "orld over. 5o" the time and the cost involved in the final production of marble has been considerably reduced. +s a result marble has entered in the middle class sector of the country. 5o" marble is the cheapest and the most suitable option for flooring of the residential and official constructions. hough in the states farther from .aFasthan it may not be the cheapest option on account of transportation charges, but still it enFoys supremacy over other options for flooring. Reas&ns be3(nd t3e (n'reas(n* <&<ular(t &+ ,arble &o" cost? 5o" marble has emerged as a very cheap option for the flooring purposes. 4arlier it used to be a leisurely thing "hich could be afforded by only fe", no" it holds the t"in advantage of catering the needs of both cost conscious as "ell as elite customers see!ing e(clusivity. Moreover the cost of the competing Dimension stone i.e. granite is much higher than marble and good ceramic tiles are also costlier and less durable than marble, this point also goes in favor of the marble industry. 3eautiful loo!s? R+ thing of beauty is Foy for everS, the saying stands true for marble too. @hether its flooring or the elevation marble loo!s good. +vailability in huge variety of colors, shades and designs increase the beauty of marble all the more. Marble does not suffer the problem of monotony, "hich is one of the maFor dra"bac!s "ith the applications of granite and the ceramic tiles.
&ongevity? )enerally used Dimension stones for the purpose of flooring and elevations are marble, granite, sandstone and slate. Of these only marble and granite can be applied on the flooring as the other t"o are porous. 3oth these natural stones are long lasting. his is one of the big advantages of these over other Dimension stones and ceramic tiles. /n fact the longevity of granite is much more than marble but the historical monuments made of marble are good evidence that the longevity of marble is also "ell enough more than one e(pects.
-&,<et(t(&n +r&, t3e Marble &+ Ot3er States here is going to be some competition to the .aFasthan marble mining and processing industry "ith the development of marble industry in the other states. 3ut seeing to the %uantum of the reserves of other marble producing states vi2. )uFarat, Madhya *radesh and Carnata!a such "orries appear irrelevant. hough these states are more centrally located in the country having cheaper approach to the different parts of the country, but each of these marble mining centers are having limited varieties of marble. he processing industries of these places have to loo! ultimately to"ards .aFasthan for catering to their needs to !eep them in running conditions. Moreover entrepreneurs doing them business in these sates are mainly of .aFasthan origin only. 0o in fact development of marble industry in the other states "ill increase the demand of marble bloc!s from .aFasthan.
.4COMM45D+ /O50
In general, the marble industry in +ajasthan has a good potential to prosper and to be one of the driving forces for the country,s overall economic well-being especially as natural resources abound. +egulating this important resource of the country is mandatory for sustainable development. Moreover, improving the quality of the final product is key to invading the international markets and establishing a reputation in this field. %igh profitability could lead to further market entry which may prove to attract more efficient production technology. This might lead to market segmentation, where value-driven and export-oriented firms will tend towards an oligopoly, whereas local-oriented cost-driven firms with relatively low technology will tend towards monopolistic competition. In all cases, to achieve a more competitive marble industry in +ajasthan in the long-run, effective government regulation is essential.
+./.+. 0.&
Marble Institute of )merica #MI)$, website" http"11www.marbleinstitute.com. 2Marble 3 4ranite2 In &M.5). #helpdesk6smeda.org.pk$. 7' 8uly '(('. Stone 2000, cited in marbleandmore.com #online reference material$. 9:orld &tone Industries" ;eading <uarrying =roduction>, In.marmoealtro.it1econ1quarrypro.asp. http?HH""".encyclopedia.comHtopicHmarble.asp(U848#marbleV titleWV7acts and information about marbleV http?HH""".google.co.inHUhlWen6sourceWhp6%WmarbleXindusrtyX"orld"ide6bt n)W)oogleX0earch6metaW6a%Wf6o%WmarbleXindusrtyX"orld"ide6fpWecd;:: D9fBEd96EB """.cdos#india.comH...HB6G9B#G9B%RO"NOSTI-ATIONG9BO7 G9BMARBLEG9BINDUSTRYG. http?HH""".stonebtb.comHmessengerH7unction/ntrHinde(.htm