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  • Amith G
  • Apr 11 2022
  • 7 minutes
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The global Ceramic industry has started noticing India as being one of the fastest-growing marketplaces that offers substantial revenue potential. Experts have observed some of the major factors that have led to the Indian ceramic market growth as high demand for ceramic tiles, growing real estate industry and favourable government policies. Another primary reason for the domestic Ceramic industry’s growth is the rising disposable income of the Indian population in general, combined with the increasing desire to beautify living spaces. 

Today, the country is seeing demand for products such as touchless and hygiene-focused bath ware products, germ-free ceramic tiles, etc. For investors who are keen on exploring this growth story, here is an overview of the ceramic sector in the country.

What does the Indian ceramics sector include?

The ceramic sector is a major contributor to the construction industry, with ceramic tiles being considered an essential component for covered roofs, wall coverings, and also floor coverings. These are highly durable and offer maximum protection from wear and tear. Ceramic tiles also require very low maintenance. Another important product coming out of the ceramic sector is clay. It is an essential ingredient required for the manufacturing of ceramic tiles. 

The sector mainly produces the following:

  • Ceramic and ceramic products 
  • Floor, wall and roof tiles, 
  • Tableware, 
  • Sanitary ware, 
  • Stoneware, 
  • Pottery, 
  • Porcelain, etc.

Recent growth in the ceramics sector

The Indian ceramic market has been reflecting steady growth in the last few years. Like with most other sectors, this one too was hit badly by the COVID-19 impact. As the Indian economy contracted by nearly 7.3% in the second quarter of 2021, the Ceramic industry experienced a slowdown. 

This sector was also hit by a shortage of labour in 2020, followed by the Covid-19 lockdown. This resulted in a delay in project completion, which further impacted the tile manufacturers. However, as the lockdown started to ease, the ceramic industry began to recover as it emerged out of the crisis stronger. The sector is now seeing a strong demand recovery in India and experts believe that it will thrive exponentially in the future.

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Future prospects of the ceramics sector

Manufacturers in the ceramic industry believe that the future of the Indian market is bright. The primary reason is the rising per capita consumption in the country. This is expected to create and sustain high demand over the next few years. The country is seeing constantly rising demand for high-end tiles, while the affordable tiles segment has remained the major demand driver. Sector experts also see a huge potential in sanitary ware as India continues to be a major exporter of sanitary ware all over the world.

Many sectoral players believe that it is the export market that will drive future growth and expect the government to help in facilitating easy entry into global markets. The Indian manufacturers are known to imitate Italian innovations in their ceramic product manufacturing. Experts believe that home-grown innovation will play an important role in competing in the global markets.

What will drive growth in this sector?

Some of the factors that are driving growth in the ceramic sector are:

  • Higher government spending on infrastructure combined with rapid urbanization. This is contributing significantly to the demand for residential and office spaces and, thereby increasing the demand for ceramic products.
  • Rising demand for space from sectors like healthcare, IT, education, etc. is contributing to the ceramic tile demand in India.
  • Rising demand for ceramic tiles is also seen coming from projects like tile replacement in residential and commercial properties. 

Possible hindrances to growth in this sector

Domestic ceramic industry players face many challenges as the cost of production is on the rise. This hampers their profit margins and, therefore, sustainability of the industry as a whole. As the dollar is appreciating against the rupee, it has resulted in a price rise of ingredients like compressed natural gas (CNG) which makes up for 30% of the manufacturing input cost in ceramic tiles. This significant cost of production is considered a primary deterrent to growth in the sector.

Top stocks in Indian ceramics sector to watch out for

Mentioned below are the top ceramics companies (as per market capitalisation) listed on the Indian stock exchanges. 

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1. Kajaria ceramic – Market cap of ~Rs. 15,000 cr

Kajaria Ceramics is India’s largest manufacturer of ceramic and vitrified tiles. It has about 7 plants spread across Uttar Pradesh, Rajasthan, Gujarat and Andhra Pradesh. The company was established 25 years ago and has since achieved manifold growth through focus on innovation and customer patronage.

2. Cera sanitary – Market cap of ~Rs. 6,000 cr

Cera Sanitary ware is one of the market leaders in the Indian Sanitary ware segment. The company offers a range of concept products that are sold through Cera Bath Studios. The company boasts of a product range including showers, seat covers, urinal, kitchen sink, wash basin, range of taps, showers and related accessories. Its tile range includes Sarga, Romanza, Urbana, Cheviot, Camelia, Columbia, Dolce, Taos, etc.

3. Somany ceramics – Market cap of ~Rs. 2,000 cr

Somany Ceramics Ltd is a strong player in In the Indian tiles sector. Since its establishment, it has held the leadership position in the market by adopting futuristic and innovative approach. The company’s wide product range includes floor tiles, wall tiles, imported tiles, wide range of sanitary ware, etc.

4. Pokarna – Market cap of ~Rs. 2,000 cr

Pokarna Ltd is primarily into the processing and export of ceramic products, including granite. The company boasts of a wide product range including tiles, rough blocks, slabs, and cut to size granite. The company has also expanded into alternative business areas like apparel.

5. HSIL – Market cap of ~Rs. 1,900 cr

HSIL is a strong player in the building products segment and enjoys leadership in the container glass market. The company recently forayed into home interior solutions at a retail level to expand its outreach to the end user. One of their brands, EVOK, mainly caters to the retail segment by ensuring comfortable one-stop shopping solution.


The growth spurt seen in the Indian ceramic industry is mainly attributed to exponential growth in the country’s construction space. With a projected CAGR of 8% in the coming years, the Indian ceramic industry truly holds the potential to dominate the world market in the extended future. To its aid are also various government schemes like ‘Pradhan Mantri Awas Yojana’, ‘Smart Cities, etc. that will likely provide a boost to the real estate sector. 


Which is the best Ceramic stock to invest in India?

To identify the best Ceramic sector stock, one has to look at the list of ceramic-sector companies listed on stock exchanges in India. The choice from among these depends on various factors like historical performance, company fundamentals, company size, management, etc.

Is the ceramic industry causing environmental issues?

The ceramic industry does face challenges associated with causing environment issues like waste management, air pollution, working conditions, etc.

How is the Indian ceramic industry placed against China?

The Indian ceramic industry faces stiff competition from the Chinese industry since the latter has a dominant technological and production scale advantage. However, since Chinese products are not considered durable, many standard Indian ceramic players are slowly gaining advantage in the world market.

Why should I invest in the ceramic sector?

By including ceramic sector stocks in your portfolio, you can achieve overall diversification while gaining from the sectoral growth opportunity in the long run. Since ceramic industry is slated to grow exponentially over the next few years, investing in the stocks of a high-growth ceramic company can prove profitable.

Is ceramic sector closely connected to construction sector?

Yes, ceramic sector is closely connected to the construction sector since the latter results in ceramic demands coming from an increasing number of residential and commercial real estate projects. The construction sector also involves redevelopment and interiors which often demand ceramic products for refurbishment.

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