Fuel, Labour & Transportation factors determines the health of the industry which heavily depends on transportaion service for inputs (raw materials) and delivering the finish product which is heavy compared to other building materials.
Supply of uninterrupted industrial gas by pipeline by GSPC was a milestone that revived the region's extinct ceramic business. Any increase in the price can immidiately affect the competitiveness of the local industry in international markets. Because outside of India the industry needs to compete with Chinese tiles factories.
In the last ten years (2005 to 2015) we have seen a burgeoning groth in erection of new units in and around Morbi. Mostly new unit manufacture vitrified tiles and large format wall tiles.
The quality of the local products is becoming comparable to that of international standards. Some of these products are also qualifying stringent European EN14411:2006 norms.
Morbi's ceramic cluster is categorized as unorganized sector with many of the family owned companies. But these companies must adopt a professional approach to attract quality manpower.
The region around Morbi (i.e. Vankaner, Dhuva, and Thangadh) is a virtually untapped ceramics hotspot. It is India's newest and most promising ceramics production hub with scores of innovative and enthusiastic tile and sanitaryware manufacturers, all of whom represent key future sales targets for equipment, raw materials and service suppliers. The pace of production growth in this region has been explosive and this trend is set to continue for the foreseeable future.
The vicinity of the city with major ports (e.g. Kandla and Mundra) also lowers down the transportation costs. The region will surely be one of Asia's key driving forces over the next 10 years.