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International Trade

of Ornamental

Granite in Indian

Scenario

M.Vallalar.I.A.S

Managing Director

TamilNadu Minerals Ltd

Chennai

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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

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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.

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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.

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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.

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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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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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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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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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Export of Granite & Products from

India under CAPEXIL

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DEPTH OF OPERATION:

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DEPTH OF OPERATION:

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DEPTH OF OPERATION:

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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.

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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:

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Inclined Joints-Recovery-

Medium to Low:

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Displacements along Dyke

Rocks(Faults) affect Recovery:

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Hairline fractures result in Nil

recovery of blocks:

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Low Recovery due to black

patches:

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Recovery Percentage in Kunnam

dyke, Tamil Nadu, Fissure cracks

affect the recovery badly:

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Chinese Method of working will increase

the production as well as recovery in a

defect free granite quarry:

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Disc Saw Cutting:

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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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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.

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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.

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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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