Ceramics Industry

CERAMIC INDUSTRY OF PAKISTAN Presented to Sir Afaq Ali Khan Presented By Muhammad Khalid Zohaib Ahmed

AGENDA Introduction Importance History Global

Overview Industry Overview Types Of Ceramics Raw Materials Ceramic Processing Ceramic Units

Export

Potential SWOT Analysis Pakistan Vs China WTO Impact Problems Suggestion

Introduction 

The word ceramic is derived from the Greek word (keramikos). The term covers non-metallic materials whose formation is due to the action of heat. Up until the 1950s or so, the most important of these were the traditional clays, made into pottery, bricks, tiles and are like, along with cements and glass.

Importance 

Before late 1980’s use of tiles was mainly concentrated with the elite of the society, The elite and general public used “Ceramic Tiles” in their toilets as well as in flooring, which were considered as a sign of prominence.

Importance 





The enduring beauty of ceramics is part of Pakistan’s historical and architectural heritage from the time of the mughal era. Due to the durability in all weather & extreme climatic conditions, ceramic tiles are used for exterior finishes. Their totally water resistant & acid immunity properties make these tiles for laboratories, kitchens & bathrooms.

Benefits Good shape and design  Available in different colors than marble  Less of bacterial growth  Cheaper than marble 

History 





At the time of creation of Pakistan in 1947, there was no ceramic industry at all. There were certain pockets where the concentration of such units formed a cluster. The government of Pakistan provided technical and financial assistance through Ceramic Service Center at Gujrat and Pottery Development Center at Shahadra near Lahore.

History 



The pottery industry developed into a ceramic industry and better manufacturing techniques were introduced. Thus in late fifties some big ceramics units like Dada Bhoy China Karachi, Pakpore Ceramics Lalamusa (Gujrat) were established to produce high temperature porcelain tableware of good quality using imported machinery.

History 



In late sixties refractory manufacturing units were established, namely General Ceramics and Marshall Ceramics at Gujranwala, and General Refractory at Karachi. In seventies, the production of sanitary wares was started in an organized manner and big units like International Ceramics, Karam Ceramics, Frontier Ceramics, Swat Ceramics, Trust Ceramics etc. were established and started their production to their capacities.

History 

In mid seventies, a few organized units for the production of ceramic wall and floor tiles were established on European imported technology. The more prominent units among them were Shabir tiles, Swat Ceramics, Karam Ceramics, Emco Industries etc. Later on more units like National Tiles, Master Tiles, Frontier Ceramics etc. were established.

Global Perspective World exports of Ceramic products were US $ 10.8 Billion in 2000. USA was the largest importer in 2000 with 19% of global imports while Germany was second with 11% share. After the advent of marble the ceramic industry was sustaining losses but it regained its ability due to the low cost as compared to the marble.

Industry overview Tiles

Insulators

Sanitary ware

Tableware Refractories

Status

Highly Highly Organized Organized

Organized Organized UnOrganized

No of units

8

1

63

150

20

Total Employment

2,435

465

6,000

7,500

207

Installed Capacity

7 million sq.meter

4,500 Tonnes

4.3 million 99,000 pieces Tonnes

62,300 Tonnes

Current Production

6.5 million 2,500 sq.meter tonnes

3.7 million 45,000 pieces tonnes

33,100 tonnes

Capacity Utilization

95%

56%

85%

45%

53%

Technology Level

Capital Intensive

Capital Intensive

Labor Intensive

Labor Intensive

Labor Intensive

Automation

Highly

Auto, Semi Low

Org.Highly Low

Key Players Company Products Emco Industries Wall, floor tiles & insulators Frontier Ceramics

Sanitaryware tiles & wall tiles

Karam Ceramics

Wall tiles & Sanitaryware

Master Tiles Shabbir Tiles Marshal Tiles National Tiles Swat Ceramics

Wall tiles & Sanitary fittings Wall tiles Wall facing & flooring tiles Floor and face tiles Wall tiles & Sanitaryware

National Ceramics Industry Ceramics manufacturing sector plays a significant role in the economy of Pakistan. The sector employs over 36,000 people and contributes 0.1% to total GDP of the country. Its contribution to the exports of the country is about $ 12.30 Million per annum.

Raw Materials Raw materials for body include Quarts, Feldspar, China clays and Ball clay, Mianwali clay, K.D. 10 Stone. Raw materials for glaze include Quartz, Feldspar, Limestone, Zinc oxide, Barium oxide, Zirconium and ceramic colors. Plastic of Paris is the material that is used for modeling and moulding of the ceramic sanitary ware.

Growth Trend Amount in Millions

Rs

Products

1999- 2000-01 2001-02 2001-03 00

Tiles Tableware Sanitary ware Refractorie s Insulators Total

2427 1775 1212

2482 1792 1380

2784 1876 1706

3072 1896 2194

754

802

880

972

476 6644

570 7026

734 7930

916 9050

Ceramic Growth Growth trend of ceramics is increasing every year. The industry has not only fulfilling the domestic needs but also exporting small quantities. The main reason for not achieving the significant break through in exports by this industry is the uncompetitive cost structure of domestic products due to ever increasing utilities prices coupled with the high tariffs on imported materials

Ceramic Processing Ceramic undergoes through certain processes which are:     

Slip Preparation & Glaze Making Casting & Drying Glazing Firing Inspection, Repairing, Re-firing & Packing

Slip Preparation & Glaze Making

For the slip preparation the raw materials are mixed up with water as per the requirement. Proper composition along with the sufficient amount of water then gets loaded to the ball mills for grinding.

Casting & Drying

Slip is cast into plaster moulds. Due to the absorption of water the surface becomes thick with time. All products need to be dried to a low water content to increase the strength of body, which is called drying.

Glazing There are many glazing methods such as spraying glaze, dipping glaze, pouring glaze, brushing glaze etc. The method of spraying glaze is mostly used due to the large volume and complicated shapes. This process is executed on the conveying belt.

Firing These sprayed clay wares are then taken to the kiln for firing. As a result the bodies will take place a series of physical and chemical reactions, and will take a fixed shape. There are 3 zones in the firing process i.e. Preheating Zone Heating Zone Cooling Zone

Inspection, Repairing, Refiring & Packing

Finished products are determined according to stipulated standards to select passed products & un-passed parts by repairing & re-firing. Passed products are carefully packed and sent.

Ceramics Units

The regions where ceramics production is engaged are: Gujranwala Kamoke Nowshera Virkan Wazirabad

Product line     

Ceramic Tiles Tableware Sanitary ware Refractories Electric Insulators

World Export Trends ($

Products

199900

Tiles 5,406 Tableware 2,204 Sanitary 1,620 Ware

Million)

2000-01 2001-02 2002-03 5,484 2,164 1,608

Refractorie 956 928 s Insulators 438 426 Total 10,624 10,610

5,660 2,048 1,760

5,692 2,072 1,806

972

960

482 10,922

494 11,024

Pakistan Exports & Imports (1999-00) ( $ Million)

Products

Exports

Imports

Tiles

N/A

1294

Tableware

0.44

3.11

Sanitaryware

0.205

0.228

Insulators

1.68

3.72

Refractories

0.04

4.06

Interesting Facts Ceramics

is extensively used by NASA for its Space Shuttle. Wapda uses it for the insulators. Knives can be used Ball bearings as it does not gets rust

Interesting facts (cont.) In the early 1980s, Toyota researched production of an adiabatic ceramic engine which can run at a temperature of over 6000 °F (3300 °C). Ceramic engines do not require a cooling system and hence allow a major weight reduction and therefore greater fuel efficiency. Fuel efficiency of the engine is also higher at high temperature

Project cost utilities The cost of the project including land requirement, building size, machines and equipment and utilities, personnel requirement is given below: I Cost of the Project (Rs. in Million) 1) Land (10 Acres) = 11.978 2) Building = 56.430 3) Machines and Equipment = 114.198 4) Other Furniture & Fixture = 20.315 Fixed Cost = 202.921 Working Capital Total Cost II Utilities

= = =

9.563 212.484 500 KW

SWOT Analysis Strengths Abundance of low cost labor Extensive supplier industry Strong linkages with other key regional clusters

SWOT Analysis (Cont.) Weaknesses Non availability of processed raw materials High cost of utilities (gas & electricity) Low R&D for product innovation Use of traditional techniques & technology

SWOT Analysis (Cont.)

Opportunities Rising domestic demand Large export potential in Middle East, Africa and Central Asia Facilitate supply chain collaboration

SWOT Analysis (Cont.) Threats Low priced import from China Changing consumer preferences Large surplus capacities in the international markets Increasing regulatory pressures Smuggling from China and Iran

Pakistan Vs China 

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Pakistan have 6 companies, whereas China have 2500. 10,000 m/day production is considered to be the largest producer in Pakistan , whereas in China 50,000 m/day is considered to be larger.

WTO Impact 

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Duties are low, decrease from 60 to 20%. Due to WTO, import is high in Pakistan, specially from China and Iran, because they give subsidies to their exporters.

Problems      

Internal High gas and electricity charges Inconsistency of policies Unskilled labour High cost of capital Lack of incentives for exports

Problems (Cont..)  

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External Cheap imports from neighboring countries Subsidies given to the exporters of that country by their government Reduction in duties as per WTO

Problems

The

mine sector from where the raw materials are available is not developed. Due to the rain the mines gets choked and it is unable to extract the raw material.

Suggestions

Consistency of policies  Cost of utilities should be decreased  Smuggling from Iran & China should be stopped.  BOI shall bring FDI into this industry. 

Thank You