Ceramics Industry

CERAMIC INDUSTRY OF CERAMIC INDUSTRY OF PAKISTANPAKISTAN

Presented to Sir Afaq Ali KhanPresented to Sir Afaq Ali Khan

Presented By Muhammad Presented By Muhammad KhalidKhalid

Zohaib Ahmed Zohaib Ahmed

AGENDAAGENDAIntroductionIntroductionImportanceImportanceHistoryHistoryGlobal OverviewGlobal OverviewIndustry Overview Industry Overview Types Of CeramicsTypes Of CeramicsRaw MaterialsRaw MaterialsCeramic ProcessingCeramic ProcessingCeramic UnitsCeramic Units

Export PotentialExport PotentialSWOT AnalysisSWOT AnalysisPakistan Vs ChinaPakistan Vs ChinaWTO ImpactWTO ImpactProblemsProblemsSuggestionSuggestion

IntroductionIntroduction

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

ImportanceImportance

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

ImportanceImportance

The enduring beauty of ceramics is part of The enduring beauty of ceramics is part of Pakistan’s historical and architectural Pakistan’s historical and architectural heritage from the time of the mughal era. heritage from the time of the mughal era.

Due to the durability in all weather & Due to the durability in all weather & extreme climatic conditions, ceramic tiles extreme climatic conditions, ceramic tiles are used for exterior finishes.are used for exterior finishes.

Their totally water resistant & acid Their totally water resistant & acid immunity properties make these tiles for immunity properties make these tiles for laboratories, kitchens & bathrooms.laboratories, kitchens & bathrooms.

BenefitsBenefits

Good shape and designGood shape and design Available in different colors than Available in different colors than marblemarble Less of bacterial growthLess of bacterial growth Cheaper than marbleCheaper than marble

HistoryHistory

At the time of creation of Pakistan in 1947, At the time of creation of Pakistan in 1947, there was no ceramic industry at all. there was no ceramic industry at all.

There were certain pockets where the There were certain pockets where the concentration of such units formed a cluster. concentration of such units formed a cluster.

The government of Pakistan provided The government of Pakistan provided technical and financial assistance through technical and financial assistance through Ceramic Service Center at Gujrat and Pottery Ceramic Service Center at Gujrat and Pottery Development Center at Shahadra near Lahore. Development Center at Shahadra near Lahore.

HistoryHistory

The pottery industry developed into a The pottery industry developed into a ceramic industry and better manufacturing ceramic industry and better manufacturing techniques were introduced. techniques were introduced.

Thus in late fifties some big ceramics units Thus in late fifties some big ceramics units like Dada Bhoy China Karachi, Pakpore like Dada Bhoy China Karachi, Pakpore Ceramics Lalamusa (Gujrat) were Ceramics Lalamusa (Gujrat) were established to produce high temperature established to produce high temperature porcelain tableware of good quality using porcelain tableware of good quality using imported machinery.imported machinery.

HistoryHistory

In late sixties refractory manufacturing units In late sixties refractory manufacturing units were established, namely General Ceramics were established, namely General Ceramics and Marshall Ceramics at Gujranwala, and and Marshall Ceramics at Gujranwala, and General Refractory at Karachi.General Refractory at Karachi.

In seventies, the production of sanitary wares In seventies, the production of sanitary wares was started in an organized manner and big was started in an organized manner and big units like International Ceramics, Karam units like International Ceramics, Karam Ceramics, Frontier Ceramics, Swat Ceramics, Ceramics, Frontier Ceramics, Swat Ceramics, Trust Ceramics etc. were established and Trust Ceramics etc. were established and started their production to their capacities. started their production to their capacities.

HistoryHistory

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

Global PerspectiveGlobal Perspective

World exports of Ceramic products World exports of Ceramic products were US $ 10.8 Billion in 2000. USA were US $ 10.8 Billion in 2000. USA

was the largest importer in 2000 with was the largest importer in 2000 with 19% of global imports while Germany 19% of global imports while Germany

was second with 11% share.was second with 11% share.

After the advent of marble the After the advent of marble the ceramic industry was sustaining ceramic industry was sustaining

losses but it regained its ability due to losses but it regained its ability due to the low cost as compared to the the low cost as compared to the

marble.marble.

Industry overviewIndustry overviewTilesTiles InsulatorsInsulators Sanitary Sanitary

warewareTablewarTablewaree

RefractorieRefractoriess

StatusStatus Highly Highly OrganizeOrganizedd

Highly Highly OrganizedOrganized

OrganizeOrganizedd

OrganizedOrganized Un-Un-OrganizedOrganized

No of unitsNo of units 88 11 6363 150150 2020

Total Total EmploymentEmployment

2,4352,435 465465 6,0006,000 7,5007,500 207207

Installed Installed CapacityCapacity

7 million 7 million sq.metersq.meter

4,500 4,500 TonnesTonnes

4.3 4.3 million million piecespieces



Current Current ProductionProduction

6.5 6.5 million million sq.metersq.meter

2,500 2,500 tonnestonnes

3.7 3.7 million million piecespieces



Capacity Capacity UtilizationUtilization

95%95% 56%56% 85%85% 45%45% 53%53%

Technology Technology LevelLevel

Capital Capital IntensiveIntensive

Capital Capital IntensiveIntensive

Labor Labor IntensiveIntensive



Automation Automation LevelLevel

Highly Highly AutomatAutomateded

Auto, Semi Auto, Semi & Manual& Manual

Low Low AutomatiAutomationon

Org.HighlOrg.Highly y AutomateAutomatedd

Low Low AutomatioAutomationn

Key PlayersKey PlayersCompanyCompany ProductsProducts

Emco Emco IndustriesIndustries

Wall, floor tiles & insulatorsWall, floor tiles & insulators

Frontier Frontier CeramicsCeramics

Sanitaryware tiles & wall Sanitaryware tiles & wall tilestiles

Karam Karam CeramicsCeramics

Wall tiles & SanitarywareWall tiles & Sanitaryware

Master TilesMaster Tiles Wall tiles & Sanitary fittingsWall tiles & Sanitary fittings

Shabbir TilesShabbir Tiles Wall tilesWall tiles

Marshal TilesMarshal Tiles Wall facing & flooring tilesWall facing & flooring tiles

National TilesNational Tiles Floor and face tilesFloor and face tiles

Swat CeramicsSwat Ceramics Wall tiles & SanitarywareWall tiles & Sanitaryware

National Ceramics National Ceramics IndustryIndustry

Ceramics manufacturing sector plays Ceramics manufacturing sector plays a significant role in the economy of a significant role in the economy of Pakistan. The sector employs over Pakistan. The sector employs over

36,000 people and contributes 0.1% to 36,000 people and contributes 0.1% to total GDP of the country.total GDP of the country.

Its contribution to the exports of the Its contribution to the exports of the country is about $ 12.30 Million per country is about $ 12.30 Million per

annum.annum.

Raw MaterialsRaw Materials

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

Growth TrendGrowth Trend Amount in Millions Amount in Millions

RsRs

ProductsProducts 1999-1999-0000

2000-2000-0101

2001-2001-0202

2001-2001-0303

TilesTiles 24272427 24822482 27842784 30723072

TablewareTableware 17751775 17921792 18761876 18961896

Sanitary Sanitary wareware

12121212 13801380 17061706 21942194

RefractoriRefractorieses

754754 802802 880880 972972

InsulatorsInsulators 476476 570570 734734 916916

TotalTotal 66446644 70267026 79307930 90509050

Ceramic GrowthCeramic Growth

Growth trend of ceramics is increasing Growth trend of ceramics is increasing every year.every year.

The industry has not only fulfilling the The industry has not only fulfilling the domestic needs but also exporting small domestic needs but also exporting small

quantities.quantities.The main reason for not achieving the The main reason for not achieving the significant break through in exports by significant break through in exports by this industry is the uncompetitive cost this industry is the uncompetitive cost structure of domestic products due to structure of domestic products due to ever increasing utilities prices coupled ever increasing utilities prices coupled

with the high tariffs on imported with the high tariffs on imported materialsmaterials

Ceramic ProcessingCeramic Processing

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

Slip Preparation & Glaze MakingSlip Preparation & Glaze Making Casting & DryingCasting & Drying GlazingGlazing FiringFiring Inspection, Repairing, Re-firing & Inspection, Repairing, Re-firing & Packing Packing

Slip Preparation & Glaze Slip Preparation & Glaze MakingMaking

For the slip preparation the raw For the slip preparation the raw materials are mixed up with water materials are mixed up with water

as per the requirement. Proper as per the requirement. Proper composition along with the composition along with the

sufficient amount of water then sufficient amount of water then gets loaded to the ball mills for gets loaded to the ball mills for

grinding.grinding.

Casting & DryingCasting & Drying

Slip is cast into plaster moulds. Due to Slip is cast into plaster moulds. Due to the absorption of water the surface the absorption of water the surface

becomes thick with time.becomes thick with time.All products need to be dried to a low All products need to be dried to a low water content to increase the strength water content to increase the strength

of body, which is called drying.of body, which is called drying.

Glazing Glazing

There are many glazing methods There are many glazing methods such as spraying glaze, dipping such as spraying glaze, dipping glaze, pouring glaze, brushing glaze, pouring glaze, brushing

glaze etc.glaze etc.

The method of spraying glaze is The method of spraying glaze is mostly used due to the large mostly used due to the large

volume and complicated shapes.volume and complicated shapes.

This process is executed on the This process is executed on the conveying belt.conveying belt.

FiringFiring

These sprayed clay wares are then These sprayed clay wares are then taken to the kiln for firing. As a result taken to the kiln for firing. As a result the bodies will take place a series of the bodies will take place a series of physical and chemical reactions, and physical and chemical reactions, and

will take a fixed shape.will take a fixed shape.

There are 3 zones in the firing There are 3 zones in the firing process i.e. process i.e.

Preheating ZonePreheating ZoneHeating ZoneHeating ZoneCooling ZoneCooling Zone

Inspection, Repairing, Re-Inspection, Repairing, Re-firing & Packingfiring & Packing

Finished products are determined Finished products are determined according to stipulated standards to according to stipulated standards to select passed products & un-passed select passed products & un-passed

parts by repairing & re-firing.parts by repairing & re-firing.

Passed products are carefully packed and Passed products are carefully packed and sent.sent.

Ceramics UnitsCeramics Units

The regions where ceramics The regions where ceramics production is engaged are:production is engaged are:

GujranwalaGujranwalaKamokeKamoke

Nowshera VirkanNowshera VirkanWazirabad Wazirabad

Product lineProduct line

Ceramic TilesCeramic Tiles TablewareTableware Sanitary wareSanitary ware RefractoriesRefractories Electric Insulators Electric Insulators

World Export TrendsWorld Export Trends ($ ($

Million)Million)ProductsProducts 1999-1999-

00002000-2000-0101

2001-022001-02 2002-032002-03

Tiles Tiles 5,4065,406 5,4845,484 5,6605,660 5,6925,692

TablewareTableware 2,2042,204 2,1642,164 2,0482,048 2,0722,072

Sanitary Sanitary WareWare

1,6201,620 1,6081,608 1,7601,760 1,8061,806

RefractoriRefractorieses

956956 928928 972972 960960

InsulatorsInsulators 438438 426426 482482 494494

TotalTotal 10,6210,6244

10,61010,610 10,92210,922 11,02411,024

Pakistan Exports & ImportsPakistan Exports & Imports(1999-00)(1999-00)

( $ Million)( $ Million)

ProductsProducts ExportsExports ImportsImports

TilesTiles N/AN/A 12941294

TablewareTableware 0.440.44 3.113.11

SanitarywareSanitaryware 0.2050.205 0.2280.228

InsulatorsInsulators 1.681.68 3.723.72

RefractoriesRefractories 0.040.04 4.064.06

Interesting FactsInteresting Facts

Ceramics is extensively used by Ceramics is extensively used by NASA for its Space Shuttle.NASA for its Space Shuttle.

Wapda uses it for the insulators.Wapda uses it for the insulators.Knives can be used Knives can be used

Ball bearings as it does not gets rustBall bearings as it does not gets rust

Interesting facts (cont.)Interesting facts (cont.)

In the early 1980s, Toyota In the early 1980s, Toyota researched production of an researched production of an

adiabatic ceramic engine which can adiabatic ceramic engine which can run at a temperature of over 6000 °F run at a temperature of over 6000 °F (3300 °C). Ceramic engines do not (3300 °C). Ceramic engines do not require a cooling system and hence require a cooling system and hence allow a major weight reduction and allow a major weight reduction and

therefore greater fuel efficiency. Fueltherefore greater fuel efficiency. Fuel efficiency of the engine is also higher efficiency of the engine is also higher

at high temperatureat high temperature

http://en.wikipedia.org/wiki/Fuel_efficiency

http://en.wikipedia.org/wiki/Image:DSCN0126.jpg

Project cost utilitiesProject cost utilities

The cost of the project including land requirement, The cost of the project including land requirement, building size, machines and equipment and utilities, building size, machines and equipment and utilities,

personnel requirement is given below: -personnel requirement is given below: -II Cost of the ProjectCost of the Project (Rs. in Million) (Rs. in Million) 1) Land (10 Acres) 1) Land (10 Acres) = 11.978 = 11.978 2) Building2) Building = = 56.43056.430

3) Machines and Equipment3) Machines and Equipment = 114.198= 114.198 4)4) Other Furniture & FixtureOther Furniture & Fixture = 20.315= 20.315

Fixed CostFixed Cost = 202.921= 202.921

Working CapitalWorking Capital = = 9.563 9.563Total CostTotal Cost = 212.484 = 212.484IIII UtilitiesUtilities = 500 KW= 500 KW

SWOT AnalysisSWOT Analysis

StrengthsStrengthsAbundance of low cost laborAbundance of low cost laborExtensive supplier industryExtensive supplier industryStrong linkages with other key regional Strong linkages with other key regional clustersclusters

SWOT Analysis (Cont.)SWOT Analysis (Cont.)

WeaknessesWeaknessesNon availability of processed raw Non availability of processed raw materialsmaterialsHigh cost of utilities (gas & High cost of utilities (gas & electricity)electricity)Low R&D for product innovationLow R&D for product innovationUse of traditional techniques & Use of traditional techniques & technologytechnology


OpportunitiesOpportunities Rising domestic demandRising domestic demandLarge export potential in Middle Large export potential in Middle East, Africa and Central AsiaEast, Africa and Central AsiaFacilitate supply chain collaborationFacilitate supply chain collaboration


Threats Threats Low priced import from ChinaLow priced import from ChinaChanging consumer preferencesChanging consumer preferencesLarge surplus capacities in the Large surplus capacities in the international markets international marketsIncreasing regulatory pressuresIncreasing regulatory pressuresSmuggling from China and IranSmuggling from China and Iran

Pakistan Vs ChinaPakistan Vs China

Pakistan have 6 companies, whereas Pakistan have 6 companies, whereas China have 2500.China have 2500.

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

WTO ImpactWTO Impact

Duties are low, decrease from 60 to Duties are low, decrease from 60 to 20%.20%.

Due to WTO, import is high in Due to WTO, import is high in Pakistan, specially from China and Pakistan, specially from China and Iran, because they give subsidies to Iran, because they give subsidies to their exporters.their exporters.

ProblemsProblems

InternalInternal High gas and electricity chargesHigh gas and electricity charges Inconsistency of policiesInconsistency of policies Unskilled labourUnskilled labour High cost of capitalHigh cost of capital Lack of incentives for exportsLack of incentives for exports

Problems (Cont..)Problems (Cont..)

External External Cheap imports from neighboring Cheap imports from neighboring

countriescountries Subsidies given to the exporters of Subsidies given to the exporters of

that country by their that country by their governmentgovernment

Reduction in duties as per WTOReduction in duties as per WTO

ProblemsProblems

The mine sector from where the The mine sector from where the raw materials are available is not raw materials are available is not

developed.developed.Due to the rain the mines gets Due to the rain the mines gets

choked and it is unable to extract choked and it is unable to extract the raw material.the raw material.

SuggestionsSuggestions

Consistency of policiesConsistency of policies Cost of utilities should be decreasedCost of utilities should be decreased Smuggling from Iran & China should Smuggling from Iran & China should

be stopped.be stopped. BOI shall bring FDI into this industry.BOI shall bring FDI into this industry.

Thank YouThank You

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Ceramics Industry