Exports is likely to be the saviour for Asian Granito Ltd (AGL), one of the leading tiles and quartz manufacturers in India. Apart from getting orders from traditional importers of Indian tiles, countries which were highly dependent on Chinese products have also turned their eyes to Indian products where AGL has signed incremental new contracts and orders from various Asian countries such as Indonesia, Thailand, Malaysia, Japan and Korea. The company currently caters to 70 countries across the globe and it targets to increase its global footprint by catering to 100 such countries.
Like other tiles manufacturers, AGL too suffered during the lockdown and in the first quarter its sales were down by nearly 59%. Meanwhile, AGL is one of the first companies in the industry to resume its operation at all plants, which has resulted in business operations recovery to around 90% during the month of August 2020 versus corresponding month of last year primarily driven by strong demand from tier 3&4 cities led by pick-up in government initiatives such as budget housing and sanitation activities. While metro and tier1 cities are still struggling to recover from COVID-19 impact, tier 2 and below cities have done a speedy recovery due to easy availability of material and manpower.
Company’s quartz business was also badly hit during the lockdown and as result quartz revenue showed 90% de-growth during the quarter. However, things are improving for the company in quartz business too as the USA, leading importer of quartz, has reduced CVV and anti-dumping duty (ADD) from 87.5% to 3.19% on import of Quartz from India while increasing the ADD and CVV on Chinese products up to 336.69%. Also, USA has additionally increased ADD and subsidy duties on ceramic products imported from China. Further, USA has hiked the duty on Chinese tiles up to 714.83% which has also given companies like AGL an opportunity to ramp-up their tiles exports.