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28-09-2016
1
International Trade
of Ornamental
Granite in Indian
Scenario
M.Vallalar.I.A.S
Managing Director
TamilNadu Minerals Ltd
Chennai
1
Background Information:
Granite in a geological parlance is one of the major rock
types occurring in the crust of the earth.
It is a major source for occurrence of some metallic
minerals depending upon the milieu of occurrence.
Usage of Granite as building stone is known from time
immemorial, especially during Chera, Chola, Pandya and
Pallava periods, for building historic temples, palaces and
monuments depicting the then concurrent Indian culture.
It is only in recent decades, granite has been identified as
an invaluable source of excellent decorative/ornamental
stone by virtue of its inherent properties such as durability
and texture, which make it to take good polish.
Today, ornamental granite industry is a well recognized
one
2
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2
Background Information:
All over the World, shield areas are the best
geological entities where vast resources of
granites and other rock types occur.
Indian sub-continent is a potential area for
locating and exploiting such rock resources.
By now, it is well realized that India has vast and
significant resources of multi coloured granites in
States like Andhra Pradesh, Tamil Nadu,
Karnataka, Orissa, Gujarat, Rajasthan, Kerala,
Madhya Pradesh, Uttar Pradesh, Assam and
Bihar.
3
Background Information:
Though resource wise, the potential appears to be quite
encouraging, it is always a buyers’ preference, which
controls or even sometimes restricts the demand to
certain types having special colour, texture, dimension,
and amenability to take polish, mine ability etc.
To quote a few examples, rocks like ‘Ebony Black Granite
of Sweden’, ‘Petit granite of Belgium’, ‘Black granite of
South Africa’, black varieties of China and black and
multi coloured varies of India are considered to be
premium varieties in the World Market to-day
Atleast more than 200 attractive commercial names
have been assigned to various rock types in the world
marked to-day, out of which atleast 80 varieties can be
identified to occur in India.
4
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3
Growth of Indian Granites in the
International Market:
If we trace back the history of Indian export of
granite, one can understand that it started with
the export of Black granite (Dolerite) dyke rocks
from Southern India for making Tomb stones in
Japan during sixties.
With this background, the market picked up
mainly with the Black Granite as a substitute for
the import of Black Granite chiefly from South
Africa.
5
Growth of Indian Granites in
the International Market:
This was the turning point in the history of Granite
and most of the South Indian dyke rocks attracted
a fancy export price and this market sustained for
more than two and half decades.
Later, the European buyers entered in the Indian
Granite trade during 80’s and their interest was
mainly for coloured granites vastly occurring in
the potential belts of Southern granulite terrain.
The bountiful occurrence of coloured granites in
India became the treasure house for most of the
European buyers. 6
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4
Growth of Indian Granites in the
International Market:
The export growth of dimensional blocks to other
countries also facilitated import of the state –of-
the -art technology for quarrying as well as for
setting up of processing industries in India.
This has enabled phenomenal growth of the
granite industry in India.
If you look at the export growth which was around
few hundred USD in 60’s made a significant
growth to reach up to 12,000 USD during
2014–15 which includes all varieties of stones
like marble, quartzite, sandstones including
Granites. 7
Growth of Indian Granites in
the International Market:
The growth cycle of Indian granite export has
witnessed a major setbacks depends upon the
economic situations prevailed at that time in the
importing countries.
When the economic recession was at the peak, the
import of Indian granites dropped drastically in
Japan and European countries.
At this critical situation, the Chinese market picked
up significantly and was considered as an harbinger
to prevent the collapse of Indian granite industry on
the whole.
Even to-day, China is the principal importer of Indian
granites. 8
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5
Current Scenario of Indian export
of granites:
As on date China is the principal importer of
granite from India.
The technological advancements supported with
dedicated cheap labor, China could import blocks
from several countries including India and process
them at a competitive cost which helped them to
export finished products at a cheaper rates.
Considering the advantage, most of the countries
including Japan and Europe find it economical to
import the finished products of their requirement
at the best price rather than processing in their
countries. 9
Advantages and Disadvantages of
export of Indian granites to China:
Indian granites which were in a commanding position during the
last four decades now turned out to be a buyer’s market due to
the global economic recession.
The disadvantage of the Chinese market is that we need to give
them free allowance at the ratio of 1:1.7 or even 1:2 depending
upon the nature of defects present in each of the blocks.
As a result an exporter needs to pay seignorage fee to
Government for the gross ADMG measurement which is almost
double the net realization.
In addition, the transport and handling cost become almost
double.
All these factors reduce the profit margin and when the export
price and demand are low it is difficult to match with the
abnormal production cost.
It is a serious concern for the granite industry on the whole.10
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6
Export to China China has come to rule Indian Granite exporters
Indian exporter’s largely depend on the Chinese market
This has resulted in China dictating prices at even 20% cheaper than other markets
There are few options for Indian exporters
The Chinese are tough bargainers
Indian exporters try to net in large volumes of Chinese buyers
Several traditional markets such as Japan have been ignored
Exporters are at the bargain of the Chinese.
Chinese demand has increased over the years
This is in contrary with other countries in the statistics
Demand was high until 2008-09
It has decreased considerably in later periods
Recent trends show that demand for granite will increase
Exports from India to China also will flourish
Escalation of Production in the
quarries:
On the other hand the production cost in the quarries have
gone up due to depth of operation especially in below ground
deposits.
Wear and tear of mining equipment besides increase in put
cost like diesel, chemicals, consumables etc.,
In view of the compounding factors most of the quarry owners
have abandoned their quarries in the recent times due to the
current market situation besides the low export price offered.
Devaluation of the Chinese currency in recent times resulted in
major death blow to the Granite Industry on the whole.
Volume of export of Indian granites has been drastically
reduced.
Industry on the whole is facing a turbulent situation and it is
expected to recover only after a few years. 12
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7
227 376 504 670
906
1083 1139958
1013
1671
1954
2046
2461
2654
2562
3491
4725
4287
4815
4993
53846382
7942
9851 9832
0
2000
4000
6000
8000
10000
12000
Ru
pe
es in
Cro
res
Export of Granite & Products from
India under CAPEXIL
13
DEPTH OF OPERATION:
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8
DEPTH OF OPERATION:
15
DEPTH OF OPERATION:
16
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9
Ground reality in exploiting the
granite deposits:
Granite being a natural product of the earth, it
exhibits a lot of variations in
colour, texture, defects like cracks, joints
etc., depending upon the nature of occurrence in
a particular terrain.
As a result recovery of the granite blocks of
desired sizes has drastically been reduced
depending upon the nature of the formation.
This is a major issue for abandonment of more
quarries in recent times besides escalating the
production cost to match with the export price.
17
Factors affect Recovery
Percentage in a quarry:
Major failures in granite quarry operations may be
attributed to the structural instability of the sheet
formation to produce defect free blocks of
desired sizes.
Hence, a critical study of the structural stability of
the deposit is very important in determining the
success of quarry operations vis-a vis its recovery
percentage.
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Recovery is more in such
bouldery deposits:
19
Inclined Joints-Recovery-
Medium to Low:
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11
Displacements along Dyke
Rocks(Faults) affect Recovery:
21
Hairline fractures result in Nil
recovery of blocks:
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12
Low Recovery due to black
patches:
23
Recovery Percentage in Kunnam
dyke, Tamil Nadu, Fissure cracks
affect the recovery badly:
24
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13
Chinese Method of working will increase
the production as well as recovery in a
defect free granite quarry:
25
Disc Saw Cutting:
26
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14
27
Environmental concerns in
quarrying:
Recent enactment of environmental rules
and strict enforcement for getting
Environmental clearance, Consent for
Establishments and Operations have
become more important and need to be
followed to minimize the environmental
degradations.
Most of the best granite deposits which
have potential market have become non-
operational under environmental
considerations. 28
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15
Emergence of Engineering Stones as a
substitute for the Natural Stones:
Recent years, the granite trade is witnessing the
emergence of artificial stones (Engineering Stone) as a
replacement for the natural stone.
It has taken more than 30% of the market share of the
natural stone especially in USA, Australia, Canada etc.,
Though it’s a threat for the natural stones and it is for
the entrepreneurs to look at the current demand of
artificial stones and to switch over to sustain in the
trade.
It should also be taken up as a wake up call for most of
Indian exporters to acquire the technology which are
more relevant the Industry to survive and for its future
growth. 29
Conclusion: Indian Export scenario has no doubt has grown up significantly in
the last four decades and has witnessed several setbacks in its cycles but the business continues mainly because of unique varieties of granite deposits occurring within the Indian sub-continent.
Current market slump has called for a Crisis management to sustain in the trade for future.
Besides the global recession the devaluation of Chinese currency in recent times has caused a major havoc to the granite industry in particular.
Main issue for this current market set backs is due to the dependence on a particular market segment so to say linked with the economic recession in China.
In the previous case recession in Europe and Japan the industry faced a similar situation as of the present one . Therefore, the market demand for granite is based on a particular country centric and unless we spread our market net work uniformly with other countries we will face similar situation in future also.
30
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16
Conclusion:
In this context, we need to tap the market potentials of
other countries in Africa, middle - east etc. Though the
export price may be less, we need to utilize the
opportunity to identify new avenues.
It should be our constant endeavor to explore new market
segments and aim for high volume and low value
material available in the country.
Adding value addition to the finished slab will not only
export value but also help us to utilize the slabs
exhibiting variations in colour and texture by marketing
them for Projects as Flame finished/ lapathora slabs.
We should focus more on the Project orders both within
and outside the country which has unlimited demand for
low cost materials.
31
Conclusion:
Production cost both in the quarries and factories
should be minimized and in this case the recently
introduced Quarry Management System(QMS) in Tamil
Nadu Minerals Ltd (TAMIN) quarries facilitate effective
monitoring besides controls the waste management.
Considering the value and effectiveness of QMS
developed by TAMIN has won the National Award for
e-Governance recently.
Considering its export value and also the huge
employment potential Granite industries have to be
developed by using modern mining methods.
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