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Market Analysis for Export of SANDSTONE to USA
By
Naresh Kumar Dhaker
A PROJECT REPORT
Submitted to
BHARATI VIDYAPEETH UNIVERSITY
In partial fulfilment of the requirements
For the award of the POST GRADUATE DIPLOMA
In
INTERNATIONAL BUSINESS MANAGEMENT
Bharati Vidyapeeth University - Amplify DITM,
April – 2011
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Bonafide Certificate
Certified that this project report titled Market Analysis for Export of
SANDSTONE to USA is the bonafide work of Mr. NARESH KUMAR DHAKER who
carried out the research under my supervision. Certified further, that to the best of
my knowledge the work reported herein does not form part of any other project
report or dissertation on the basis of which a degree or award was conferred on an
earlier occasion on this or any other candidate.
(Certificate to be signed by the Project Guide)
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Abstract
Operating in today’s global landscape is different from the previous years due to the dispersed configuration of business activities.GPL (Globalization, Privatization, & Liberalization) has opened the doors for almost any business to go global. The core facilitators for such a drift are growth in the telecommunication sector, internet, availability of data, grounded infrastructure for business conduct, growing economy, easy & faster transportation system.Furthermore, tough competition has made the marketers to compete in terms of not only quality but also with respect to lower price & value added features. Along with the establishment of norms and standards in the “organized sectors”, a country such as India comprises of a huge “unorganized sector” of industries that fail to understand the current nerve of market.The “unorganized sector” comprises of industries that have not yet fully adapted to market forces and lack the degree of professionalism in business conduct.The aim of this thesis is to shed light on some of the challenges the unorganized sector faces. In order to do so, we have based our analysis on the Indian Stone industry that comprises of players that are highly unprofessional and lack the capability to operate in a globalized economy.
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Acknowledgement
It is my immense pleasure to work under the guidance of Professor Ajay Nagre, & I heartily thank him for providing me the guidance whenever needed.
My heuristic approach towards the project was one of the major contributors in the outcomes that we arrived at. I’d like to thank my institution, Amplify Mindware– Pune, for providing me this great opportunity & attempting to inculcate the traits needed to succeed.I am thankful to various mines owner and stockowner stone at Bijolia which help in getting knowledge about the production and packaging of sandstone.
I am thankful to various traders for providing me data which proved to be helpful in analysis the market for stone in USA.
I am thankful to various industry experts & executives for sharing relevant information & valuable thoughts with me & helped me in writing my thesis.
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TABLE OF CONTENTS
TABLE OF CONTENTS: - PAGE NO.
Chapter 1 . Introduction 6
1.1 Stone industry in india 7
1.2 Stones Available in India 7 1.3 Physical and Chemical Properties of stone 81.4 Varieties of Sandstone 101.5 Standard spacification 131.6 Prodoction 141.7 Packaging and delivery of sand stone 151.8 Quality Control & Inspection 171.9 USES OF SAND STONE 181.10 HS Code for sand stone 261.11 Indian custom duty 27 Chapter 2. The world’s export market for 28 2.1 Stone producing countries 282.2 Top exporters from india 322.3 Top importing companies in USA 332.4 Size of import in USA 352.5 U.S. trade in goods with india 372.6 Stone market Overview (USA ) 44
Chapter 3. U.S. market analysis 47 3.1 Market analysis for stone 483.2 U.S. Marble market demand analysis 493.3 U.S. industry unification 50Chapter 4.Export-import procedure 53 4.1 Questainnaire 53
Chapter 5 Swot Analysis of stone industry 56 Chapter 6.conclusions and suggestions 58Chapter 7. Biblography 62
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Chapter 1
INTRODUCTION
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1.1 Stone industry in india
India is a country which is endowed with high quality natural tones like marble, sandstone, granite etc.
India has more than 11% export share in total world's total stone export. It produces more than 27% of the total stones produced in throughout the world. India is recognized as one of the largest raw stone material producer. India is a place of different types of dimensional stones which include marble, granite, sandstone, slate, limestone and quartzite that are widespread in every corner of the nation. As per an estimation Indian stone industry is estimated to be more than Rs 3,200 crore processing stones.
Indian monuments are supplied in more than 25 nations throughout the world. India encompasses around 32 various varieties of granite for monuments and more than 90% of them can be find in 3 southern states- Tamil Nadu, Andhra Pradesh and Karnataka.
More than 95 per cent monument factories are situated in Tamil Nadu, Andhra Pradesh and Karnataka. Tamil Nadu shares around 75 per cent. There are around 150 units located in Tamil Nadu. India is a renowned producer of natural dimensional stones, possessing excellent physical and chemical characteristics. One can find out the enormous opportunities waiting to be geared in the stone industry. Stones like granites, marbles, sandstones, limestones, slate stones etc. are characterized as one of the best quality stones in all over world. In present date stone industry is recognized as one of the fastest growing sector in the Indian economy.
1.2 Stones Available in India
There are various types of stones with sparkling appearance and fine finishing available in different places of India. Have a look on some types of stones which are found within the Indian territory.
Marble deposits can be found in various parts of India with economically high deposits concentrated in the states of Gujarat, Madhya Pradesh, Rajasthan, Haryana and Andhra Pradesh. New varieties of marbles are found and are gradually being developed in Bihar, Jammu & Kashmir, Sikkim, Maharashtra, Uttar Pradesh and West Bengal
Rajasthan has a huge concentration of marble with reserves dissipated in various districts of Nagaur, Udaipur, Rajsamand, Banswara, Dungarpur, Jaipur, Sirohi, Bhilwara, Ajmer, Bundi, Alwar and Pali. The different colors found in Rajsthan marbles are Makrana Albeta White, Green, Makrana Kumari White, Makrana Dungri White, Jhiri Onyx, Phalodi Pink, Ambaji White, Indo-Italian, Babarmal Pink, Bhainslana Black, Forest Green, Forest Brown, Agaria White.
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Granite multicolor varieties of granite can be easily seen in the states of Karnataka, Andhra Pradesh, Tamil Nadu and Uttar Pradesh. India has a huge reserves of one of the best quality of granite with varied varieties, having more than 200 shades. More than 20% of world's granite is found in India. The nation holds the no.1 rank as a largest granite and granite products exporter.
Sandstone deposits are available in the states of Assam, Andhra Pradesh, Bihar, Gujarat, Haryana, Madhya Pradesh, Meghalaya, Mizoram, Karnataka, Orissa, Punjab, Rajasthan, Uttar Pradesh, Tamil Nadu and West Bengal. More than 90% of sandstone deposits are available in Rajasthan, which are spread in the districts of Dholpur, Bharatpur, Kota, Jodhpur, Sawai-Madhopur, Bundi, Chittorgarh, Bikaner, Jhalawar, Pali, and Jaisalmer.
Slate deposits are available in Haryana, Rajasthan, Himachal Pradesh, Andhra Pradesh, and Madhya Pradesh. Slate depository in Rajasthan are found in Alwar, Ajmer, Bharatpur, Tonk, Sawai Madhopur, Pali, Udaipur, Churu, and Chittorgarh.
Limestone deposits are found in large quantity in state Andhra Pradesh. It accounts to more than 32% of country's total limestone reserves. The state's limestone reserve is calculated to be nearly 93,623 million tonnes.
1.3 Physical and Chemical Properties of stone
Sandstone is a sedimentary rock group which is mostly made up of tiny grains of quartz. Most sandstone is formed in oceans, lakes and rivers where tiny bits of rock and dirt settle to the bottom. Year after year, these layers of sand get buried under tons of more sand and dirt until it is turned into solid rock. Sandstone can be found in many colors.
Physical Properties of Sandstone
Physically, they are very Hard, Compact, Fine grained, equi-granular homogeneous rocks of sedimentary nature (Sandstone)
Color Minor color tonal variations exist
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but within the tolerance limit.
Hardness 6.5 to 7 on Moh's Scale
Density 2.3 to 2.4 Kg/cm3
Compressive Strength
90 to 140 N/mm2
Modulus of Rupture
16-40 N/mm2
Water Absorption
1.0 - 1.2 %
Porosity Low to very low.
Weather Impact
Resistant
Chemical Properties of SandstoneChemically they are very resistant Mono-Mineralic rocks, principally composed of silica. The other minor constituents vary from origin to origin.
SiO2 95-97%
Iron (Fe2O3) 0.5%-1.5%
Alumina (Al2O3)
1 to 1.5%
Soda (Na2O) & Potash (Kro)
Less then 1%
Lime (CaO) Less then 0.5%
Magnesia (MgO)
Less then 0.5%
Loss On Ignition (LOI)
Less then 0.5%
They are highly resistant to acids, alkalies and thermal impact. Insolubility in acids and alkalies is about 97%.
Teakwood and Rainbow sandstones differ from above physical properties
Hardness 6 to 6.5 on Moh's Scale
Density 2.07 to 2.11 Kg/cm3
Compressive Strength
41 to 63 N/mm2
Modulus of Rupture
7-11 N/mm2
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1.4 Varieties of Sandstone
Kandla GrayAlso known as Bhilwara-GREY has quartz grains cemented together by secondary silica calcite. This sandstone is available in three different shades of bluish gray, dark gray, and light gray.
Rajpura GreenAlso known as Bhilwara-GREEN is a commonly used building stone. Rajpura stone can be easily carved and dressed into various attractive shapes. It finds various applications including - roofing, flooring, paving and paneling.
Marson CopperAlso known as Bhilwara-BROWN sandstone is a smooth round stone. This stone is made up of grains of quartz and other minerals of fairly uniform size.
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Chocolate This sandstone has high content of iron oxide making it buff to brownish; and sometimes reddish. The most important usage of this stone is exterior cladding and is available in natural, sawn as well as polished surface finishes.
Gwalior Greenish White Also known as GWL-MINT, Gwalior Mint is most suitable for use in flooring, wall fixing and lining due to its physical and chemical properties. It is the smooth natural split surface which makes it commensurate for flooring. This highly useful stone is also suitable for carving and making stone handcrafted items.
Lalitpur Yellow Also known as LLP - YELLOW this stone is especially meant for exterior cladding in sea shore buildings due to acid & thermal resistant properties. The saline winds have negligible effect on LLP Yellow stone(Lalitpur sandstone).
Dholpur-BEIGEThis buff white colored sandstone is one of the highly used sandstone variety. The peculiarity of the stone is the attractive, minor purple veins that are visible when the stone is wet. Owing to its regular bedding, uniform grain size, suitable nature and durability, it has been used from over centuries and is a constituent of a large
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number of historical buildings and monuments.
Dholpur PINK From Dholpur origin in Rajasthan, this stone is available in form of tiles, slabs, blocks in either natural, sawn or polished surfaces. The stone is mostly used for exteriors and has regular bedding, uniform grain size, suitable nature and durability.
Agra RedAlso known as Dholpur-RED is one of the most famous varieties of sandstone ever since its use in Agra Fort and Delhi Fort. The stone has high degree of tolerance that does not show weathering effects even for ages. The stone being smooth and soft is easy to be carved and cut and is therefore used in stone handicrafts.
Khatu TeakThis creamish colored stone is fine grained and bears brown veins through out the surface. This brownish touch gives the look of wooden finish and hence is also named as teakwood sandstone. This stone is available only in the form of tiles with sawn surface finish, since this stone can not be polished.
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Khatu Rainbow Rainbow stone is made of fine grained quartz and various other minerals. The presence of other minerals lend attractive color to the stone. Depending on the percentage of constituent minerals the color varies in the form of brown, violet and sometimes reddish veins. It is because of the regular color variation that this stone has been named Rainbow. Like Khatu Teak, rainbow is also available in tiles in sawn finish only.
1.5 STANDARD SPECIFICATIONS
QualityMinor color tonal variations exist but within the tolerance limit Availability -Tiles, Slabs, Blocks, Cobbles.
Edges» Both hand chiseled and machine cut (sawn)
Tiles Size in cms» 30x30, 40x40, 60x30, 60x60, 60x40, 60x90 Cut to size Tiles
Thickness» 15mm to 50mm with a tolerance of ±5mm» 18mm to 22mm with a tolerance of ±2mm (for Both sides Sawn)
Slab Size in cms» Cut to size slabs Upto 200cm length and 60cm width.
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1.6 PRODUCTION
Gantry Crane
The Big Block are unloaded in the vicinity of huge Gantry Crane of capacity 40 MT. These big sandstone block are lifted on the dressing Machine.
Block Dressing Machine
The Big random size blocks are lifted on the trolley of the dressing machine for proper dimensional size.
Gang Saw
After cutting in dimensional size the blocks are lifted with the help of Gantry Crane on the trolley of Gang Saw Machine for slabs cutting.
Edge Cutting Machine
The Slabs produces on the Gang Saw Machine are cut into tiles of required size and thickness on the Edge Cutting Machine.
Block Cutting Machine
The Block Cutter is used to cut large dimensional sized stone, known as blocks are being produced on this machine.
Polishing Machine
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The tiles and slabs are being polished on this machine. The requires bfinish such as brushing (antique) finish and shine polish are preformed on this machine.
Shot Blasting
The shot blasting or sand blasting is performed on the tiles, slabs, locks is done by the Shot Blaster.
Flaming
Columns and Pillars that gives and outstanding looks to a building are designed on the high capacity Lathe Machine.
1.7 PACKING AND DELIVERY OF SAND STONE
Packing
Stone's packaging is very important. Items are carefully packaged for shipment, and should be checked for external damage on receipt, where sign-off will be requested. Boxes of tiles are packed in polystyrene and then secured together on a pallet for delivery. Note some items such as slate are sold in crates rather than boxes.
Crate Packing - Standard PackagingEach wooden crate is first in lined with polythene to protect stones from staining from wooden planks or from any other feature, then it is in lined with foam-sheet along horizontal planks to protect stones against damage from wooden planks or nails. This is a fundamental preliminary packing used for all our wooden crates irrespective of the type of stone packed.
STAND PACKING
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PALETTE PACKING
In case of polished stones, surface of each slab/tile is protected by using a paper cloth or 2mm-foam while tightly stacking them in a wooden crate. This protects the polished surface of stones from scratching due to abrasion of dust particles between two tiles.
We consider that the quality of packing is as important as the quality of product. We never try to save cost on wood or other packing materials. Stone is normally available in various textures and finishes:
Polished: The Most popular finish – One side is Finished by the action of the Abrasives on polishing head, gives a mirror finish on Granite, and diminishing in the reflective properties, as we go from Granite to marble and slate etc.
Shade:We strictly maintain the shade of the merchandise as desired by the client. While producing cut to size tiles, careful batching is done even when the material is cut from the same slab / block.
Thickness:While sawing, especially marble we take a lot
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of care, for the best result as it is a very brittle and pasty material. A little less carefulness and the result is taper slabs.
Squarness : Maintain Perfect square ness in cut to size materials; thanks to the automatic bridge cutting machine from Peddrine SPA & Breton SPA, Italy. We never use locally made bridge cutting machines or conventional hand driven edge cutting machines as it is far than difficult to maintain.
Shipping:Even in F.O.B. & C.& F. shipments consider it as our duty to investigate and inform the buyer with various options of suitable shipping lines offering best freight along with shortest transit time and satisfactory service. Our job does not just end upon loading the container. We maintain the track of container till it reaches the destination and keep the client advised of various movements/trans shipments.
1.8 Quality Control & Inspection
Should have an in-house designed three stage quality control system which does not leave any room for mistakes or carelessness. The first stage starts at quarry level where every individual block is carefully inspected. A 3D picture is drawn displaying all the characteristics. The second stage inspection is conducted upon sawing where the material is closely inspected & various findings are properly recorded with drawings. At the final stage the polished finished product is inspected using various gadgets. A proper recording is done at this level also. Before shipping, a photograph is taken of the
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material and the packing of every container and a proper record is maintained.
1.9 USES OF THE SANDSTONE
Sandstone is uses as building and paving stone which is mainly used in Houses,Gardens,Ofiices,for Flooring,Paving and in walls.Sandstones are used for variety of purposes. They are mainly used in paving, roofing, flooring etc. They are also used in making beams, pillars, doors and window sills, wall facing, fence posts etc.
Sandstones are resistant to saline air, which make it perfect for exterior cladding in sea-shore buildings.
They are also acid and alkali resistant. So, they are used in chemical industry for flooring, wall-covering.
They are thermal resistant so used for making fireplaces.
Some common uses of sandstone are given below:
Sandstone FlooringSandstone is a wonderful material for flooring purposes. Its high strength make it perfect for making floors of shopping markets, offices, residences, monuments, parks and many more. The different colors and patterns make it easy to choose from that suits your need.
Sandstone WallsSandstone walls have been a tradition for years. Be it Red fort, hawa mahal, Rashtrapati Bhawan or any other historical monument the sandstone walls have added a great value to their beauty. The durability and long lasting of these walls show that sandstone is an ideal material for wall construction. Walls made with white sandstones shows the impact of serenity and purity. Red sandstones are largely in demand.
Sandstone PaversThe high strength of sandstone tiles, blocks, and slabs make it suitable for paving floors. The different shades and patterns of sandstone make your garden pavement gorgeous. Sandstone enhance the style and look of pavements making it attractive.
Different type of sandstone tiles and chips are used to create patterns which enhance the beauty of these pavements.
Sandstone FireplaceThe thermal resistant property of sandstones make it idle for building fireplaces. Its natural rugged look impart unique look to the fireplace. Red and yellow sandstones matching with fire waves make it alive and feels realistic.
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Sandstone Properties
High mechanical strength Resistant to acids and alkalies Resistant to air and Saline water Low water absorption ability Resistant to Corrosion and weathering Excellent binding with cement
USE IN BALCONY
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USE IN FLOORING
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USE IN BUILDING PROJECT
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USE IN ENTRANCE
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USE FOR STEPS AND RISERS
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USE IN STONE YARD
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1.10 HS CODES FOR SAND STONE
HS Codes of Heading 2516 : Granite, porphyry, basalt, sandstone and other
monumental or building stone, whether or not roughly trimmed or merely cut, by
sawing or otherwise, into blocks or slabs of a rectangular (including square) shape.
Sandstone-25162000
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1.11 Indian custom duty of product
Basic duty-10%
CVD-0%
SPL. CVD-4%
IMPORT DUTY OF SAND STONE
Assessable Value – (A)(CIF Value + 1% Landing Charge of CIF
Basic Duty – (B)(A) x Basic Duty Rate 10%
Preferential Duty – (B)(A) x Pref. Duty Rate
CVD: Additional Duty – (C)(A+B) x CVD Rate 0%
Central Excise Edu Cess – (D)(C) x Central Excise Edu Cess rate 3%
Customs Education Cess – (E)(B+C+D) x Customs Edu. Cess rate 3%
Special CVD – Special Duty – (F)(A+B+C+D+E) x Spl. CVD rate 4%
TOTAL CUSTOM DUTY=(A+B+C+D+E+F)
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CHAPTER 2
WORLD EXPORT MARKET FOR THE STONE
2.1 Stone-producing countries
Over the past 10 years, we have seen a major shift in the countries that are
exporting stone materials to the U.S. While some of the major players from 1992 --
Italy, Spain, Canada, India and Brazil to name a few -- are still high on the list in
many categories, there are many other nations who are now carrying a high profile
among U.S. importers. Some obvious examples are China, Mexico, Turkey and
Israel.
It should be noted, however, that the exporting country recorded by U.S. Customs is
not necessarily the country in which the stone was quarried. It merely represents the
country where the stone was fabricated and shipped. For example, if a granite block
is quarried in Finland and then processed into finished slabs in Italy, the material is
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recorded by U.S. Customs as an “Italian import.” As a result, nations that have well-
established quarrying operations, but somewhat limited fabricating facilities -- such
as Finland and Norway -- are not well-represented in the statistics provided by the
U.S. Department of Commerce. Nevertheless, they play an important role in the U.S.
stone industry that is unfortunately not recorded in terms of specific dollar values.
Looking at the well-established stone-producing nations, Italy remains the top
exporter of stone to the U.S. in two major categories -- granite and calcareous stone
(marble, limestone and travertine). In terms of granite, Italy exported over $194.9
million worth of stone to the U.S. in 2002, nearly four times 1992’s total of $53.1
million. Italy also exported $199.3 million worth of marble, travertine and limestone to
the U.S. in 2002, up from $100.1 million 10 years earlier. Italy has a vast number of
well-established stone-related companies, and they remain at the forefront of
developing and utilizing advanced stoneworking technology. Italy has historically
been a leader in trends that develop on a global basis, and that rich tradition
continues today.
Spain’s exports of marble, travertine and limestone to the U.S. also increased greatly
over the past decade, rising from $31.1 million in 1992 to $72.8 million in 2002. The
country’s granite exports to the U.S. grew from $7.0 million in 1992 to $21.9 million in
2002. Spain has also advanced its stoneworking capabilities, and its development of
new applications and finishes for natural stone have been well-received on an
international level.
India, which was just beginning to make significant inroads as a supplier to the U.S.
in the early ‘90s, saw some tremendous growth of its exports over the past decade.
Granite exports to the U.S. increased from $16.4 million in 1992 to $70.3 million in
2002, placing it third on the list of granite exporters to the U.S. Also very noteworthy,
India became the leading exporter of slate products to the U.S. over the past
decade, as it saw its total rise from $1.6 million in 1992 to $27.6 million in 2002.
Calcareous stone exports from India to the U.S. also increased from 1992 to 2002,
rising from $1.3 million to $5.7 million. The quality of Indian stone products has been
growing in reputation, as the country’s leading firms have been investing in cutting-
edge technology for more than a decade.
Brazil saw similar growth in the granite and slate sectors, and it has also bolstered
itself by investing in some of the best stoneworking technology from around the
world. Brazil’s granite exports to the U.S. rose from $9.4 million in 1992 to $127.7
million in 2002, making it the second-leading exporter of granite to the U.S. In the
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slate sector, exports to the U.S. from Brazil grew from $2.62 million in 1992 to $11.9
million in 2002. This makes it the third-leading supplier of granite to the U.S. market.
Turkey’s exports of calcareous stone to the U.S. increased by a factor of more than
12 over the past decade. The nation’s marble, limestone and travertine suppliers
shipped nearly $120.6 million worth of material to the U.S. in 2002, up from $9.7
million 10 years earlier. New quarries and factories for calcareous stone in Turkey
are constantly in development, and the country’s leading firms have invested in their
businesses to ensure long-term success. Granite exports from Turkey to the U.S.
also grew as it began to develop new quarries in this sector, rising from only
$127,000 in 1992 to $1.9 million in 2002.
China’s role as an exporter of stone to the U.S. has been recognized not only by the
stone industry, but also by members of the architectural community and other
specifiers. This nation began utilizing advanced Italian stoneworking machinery over
a decade ago. With this in mind, the quality of stone exports from China are
increasing in many cases. As a result, China’s exports to the U.S. have grown
tremendously in every category. In the area of granite, exports from China to the
U.S. grew from $2.5 million in 1992 to $43.3 million in 2002, placing it fourth in the
world for this category. China also became the number two exporter of slate to the
U.S. in 1992, with a total of $20.6 worth of material -- up from $1.9 million 10 years
earlier. Exports of marble, limestone and travertine also rose from $4.2 million in
1992 to $28.6 million in 2002.
Bolstered by NAFTA, Canada and Mexico saw their exports to the U.S. increase --
despite the influx of inexpensive products from other nations. Canadian granite
exports to the U.S. rose from $17.4 million in 1992 to $30.2 million in 2002. The
country’s marble/limestone/travertine exports to the U.S. also grew, from only
$394,000 in 1992 to $9.17 million in 2002.
Mexico’s exports to the U.S. rose even more dramatically, as its
marble/limestone/travertine became one of the most popular and most recognizable
products in this country. Exports in this category rose from $11.65 million in 1992 to
$90.1 million in 2002, placing third in the world within this category.
Another major player in the area of calcareous stone is Israel. The popularity of
“Jerusalem Stone” in the U.S. over the past few years has proven to be much more
than a passing fad, and exports of this material are continuing to increase as
suppliers develop new innovative finishes, such as the unique “brushed” surfacing.
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Whereas exports of calcareous stone from Israel to the U.S. only totaled $207,000 in
1992, this figure jumped to $18.9 million in 2002, placing Israel sixth in the world
among exporters of marble, limestone and travertine to the U.S.
Other new players in the category of marble, limestone and travertine included
Pakistan, whose exports to the U.S. jumped from $765,000 in 1992 to $5.5 million in
2002, and Peru, which went from a figure of zero to $8.79 million during that same
period.
Not every country saw increased business in the U.S., however. Greece, which had
been a source for major architectural projects in the U.S. during the 1980s, saw its
exports of marble, limestone and travertine drop from $15.9 million in 1992 to slightly
under $11 million in 2002. However, the purity of Greek marble can still be of
significant interest to the U.S. marketplace, as evidenced by the recent installation of
350,000 square feet of Thassos marble at The Borgata Casino in Atlantic City, NJ.
(“A colossal display of stone in Atlantic City,” November 2003 Stone World).
France, which was fourth among suppliers of calcareous stone (mostly limestone) to
the U.S. in 1992, dropped to seventh in that category by 2002. France’s total exports
in the category increased from $14.8 million in 1992 to $18.2 million in 2002, but it
was surpassed by surging nations such as Turkey, Mexico, China and Israel.
(Greece and Taiwan, which were ahead of France in 1992, fell below in 2002). Still,
French limestone remains a staple of American architecture, and it is currently being
installed for two major government projects within the U.S. -- Seattle’s City Hall and
the new federal courthouse in Brooklyn, NY (both covered in the October 2003 issue
of Stone World.)
Presently sandstone are exporting to countries like Germany, France, Belgium, U.K, U.S.A, Spain, Middle East, Australia and New Zealand.
Indian stone is very much in demand in the Far East, where it is used for monuments, fountains, roads and for outside paving.
Other market outlet for pink red and beige sandstone are Korea, Hong Kong, Singapore, China and Australia.
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While in Germany and Belgium blue and brown coloured stone material is more popular for paving and footpaths.
2.2 TOP INDIAN EXPORTERS
1.MEHTA STONE EXPORT HOUSE
Listed since 2008
Contact InformationCompany NameMEHTA STONE EXPORT HOUSEPhone000-000-91-124-4070582/4072155/4302370-79Fax91-124-2460103/4074514Address Line1MA-25, DLF CITY PHASE-III,CityGURGAONStateHARYANACountryIndiaZip/Postal Code122017
Websitewww.mehtaexporthouse.comBusiness TypeIndian Importers & Exporters
2.R. K.EXPORTS
Office: R.K. Exports
Name: Subahsh Goyal
Address: G1, 127,128 RICCO Area
City: Shahpura
Distt Jaipur
Pincode: 303103
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State: Rajasthan
Country: India
Telephone/Fax: +91-1422-222114
Mobile: +91-9829013023
Email Address: [email protected]
Website: www.rkexports.net
3.ARVICON INTERNATIONAL
Arvicon International Mr. Sirish Jain Address : L - 43, Connaught CircusNew Delhi, 110 001 (India)Phone : +(91)-(11)-23416350/23413351 Mobile : +(91)-9711600107
E-Mail : [email protected],[email protected]
4.INDIA STONE EXPORT
Company Name : INDIA STONE EXPORT Contact Person : AZHAR KHAN Country : India Province/State : Rajasthan City : JAIPUR Phone : 0091 141 3124062 Mobile Phone : +919959174076 Fax : Website : http://www.indiastoneexport.com Address : F-772-E,ROAD NO 6, VKI AREA Postcode : 302003
2.3 TOP IMPORTING COMPANIES IN USA
1. GEORGIAN STONE Corp.
CONTACT Address
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6695-E. Jimmy Carter Boulevard, Norcross, GA 30071, U.S.A.
CONTACT Information
Phone: (770) 825-0670 · Fax: (770) 825-0671
Email: [email protected]
2.BANAS STONE INC.
Warehouse & Distribution Centre(U.S.A. & Canada)
Banas Stones Inc.8144 King St., BoltonOntario, Canada L7E 0T8(on King St. east ofHumberstation Rd. in Bolton)Tel: 905-857-9684Fax: 905-857-9685E-Mail: [email protected]: www.banasstones.ca
Quarry & Processing
Banas Stones Pvt. Ltd.F-49, Phase-IIIRIICO Industrial AreaJhalawar-326001Rajasthan, IndiaTel: +91-7432-234451, 234452Fax: +91-7432-234453E-Mail: [email protected]: www.banasstones.com
3.ACME STONE INC.
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Company Name : Acme Stone Inc. Contact Person : AcmeStone Country : United States Province/State : Florida City : Tampa Phone : (813) 874 8400 Mobile Phone : Fax : (813) 874 8444 Website : http://www.acmestone.com Address : 4608 N.Cortez Ave,Tampa ,Fl 33614 Postcode : 33614
4.ALLIED STONE INC.
Texas
2405 Crown RoadDallas, TX 75229
p: 214.838.2225f: 214.838.2277
Hours of OperationMonday to Friday 8:00 am to 5:00 pmSaturdays 10:00 am to 2:00 pmEvenings by Appointment
Oklahoma
2201 W. Arkansas StDurant, OK 74701
p: 580.931.3388f: 580.931.3998
Hours of OperationMonday to Friday 8:00 am to 5:00 pmSaturdays 10:00 am to 2:00 pmEvenings by Appointment.
2.4 SIZE OF IMPORT IN U.S
U.S. consumption and imports of natural stone
Last 5 years, the U.S. natural Stone Sharp rise in imports, while exports relatively little change. Look at last 5 years U.S. natural Stone Import and export statistics, we
36
found some intriguing data. The early 90s the economic downturn, people are now forgotten, since 1993, imports of natural stone there is a significant increase, which is reflected in the few years Building High regard. But internationally, the U.S. export volume of stone is maintained at a level line, which is the world market and its importance to the development of the stone can not meet consumer.
According to the U.S. Department of Commerce statistics, in 1998 total U.S. imports of natural stone has been more than 5.1978 trillion U.S. dollars, while imports of natural stone in 1993, total 4.1835 trillion U.S. dollars only, which indicates that 5 years of stone imports increased by 24% granite in which the fastest-growing imports, total imports in 1993 only 109.4 billion U.S. dollars, rose to 1.7363 trillion U.S. dollars in 1998, an increase of 59%. For this growth trend, may be able to explain so that the use of granite as a kitchen shelter Decorative Materials There is a preference, it took away some market share from synthetic materials.
The other hand, U.S. imports over the past 5 years Marble The number actually declined, from 1993 to 1.9935 trillion U.S. dollars fell to 1.6817 trillion U.S. dollars in 1998. On the most obvious explanation of this trend is the fact that consumers are now being directed to the broader field of stone.
This reasoning is reflected in the United States Department of Commerce statistics. Being included in "other" kitchen of the stone, such as Sandstone , Quartz, dolomite and the "other" stone imports have been growing rapidly. In 1993, this type of stone only 88.2 million U.S. dollars worth of imports, while the 1998 jump to 1.3992 trillion U.S. dollars, an increase of 58% over plan, which reflects the architectural design of the United States toward the use of non-polished material trend. The United States over the past 5 years Plate Imports increased by 78%, from 21.45 million U.S. dollars in 1993 rose to 38.06 million U.S. dollars in 1997.
Imports from the country-specific terms, Italy has been the largest U.S. supplier of natural stone, and far ahead. 1997, imports of natural stone from Italy, the value of 2.2506 trillion U.S. dollars, last 5 years the total value of 9.7433 trillion U.S. dollars. Although the marble is imported Italian marble, the total value of 87.47 million U.S. dollars, while the granite of the total value of 44.15 million U.S. dollars. Marble imported from Italy in 1998 the total value and total value is almost the same granite, imported marble, the total value of 89.94 million U.S. dollars, while the total value of imported granite 80.42 million U.S. dollars.
Classification from the marble run, over the past five years, the United States imports from Mexico have great material growth. Due to the North Atlantic Free Trade Area (including Canada, the United Kingdom and the United States), and more and more people use Lime The impact of stone, in 1998 U.S. imports from Mexico, such as marble and limestone to reach 22.39 million U.S. dollars the total value of almost 11.63 million U.S. dollars in 1993, twice.
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2.5 U.S.TRADE IN GOODS WITH INDIA
2011 : U.S. trade in goods with India
NOTE: All figures are in millions of U.S. dollars on a nominal basis, not seasonally adjusted unless otherwise specified. Details may not equal totals due to rounding.
Month Exports Imports Balance
January 2011 1,391.9 2,532.3 -1,140.4
February 2011 1,458.4 2,229.8 -771.4
TOTAL 2011 2,850.3 4,762.1 -1,911.8
2010 : U.S. trade in goods with India
NOTE: All figures are in millions of U.S. dollars on a nominal basis, not seasonally adjusted unless otherwise specified. Details may not equal totals due to rounding.
Month Exports Imports Balance
January 2010 1,295.5 2,079.4 -783.9
February 2010 1,235.2 1,958.1 -722.9
March 2010 1,454.8 2,472.4 -1,017.6
April 2010 1,671.2 2,650.0 -978.8
May 2010 1,852.9 2,672.6 -819.7
June 2010 1,690.6 2,532.6 -841.9
July 2010 1,800.2 2,591.4 -791.2
August 2010 1,716.8 2,773.5 -1,056.7
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September 2010 1,447.2 2,415.0 -967.8
October 2010 1,921.2 2,898.7 -977.5
November 2010 1,527.0 2,354.6 -827.6
December 2010 1,610.2 2,133.0 -522.8
TOTAL 2010 19,222.7 29,531.2 -10,308.4
2009 : U.S. trade in goods with India
NOTE: All figures are in millions of U.S. dollars on a nominal basis, not seasonally adjusted unless otherwise specified. Details may not equal totals due to rounding.
Month Exports Imports Balance
January 2009 1,139.8 1,833.5 -693.7
February 2009 1,046.8 1,579.0 -532.2
March 2009 1,123.5 1,773.0 -649.5
April 2009 1,268.8 1,799.2 -530.4
May 2009 1,507.5 1,580.8 -73.4
June 2009 1,397.9 1,564.2 -166.3
July 2009 1,658.0 1,824.8 -166.9
August 2009 1,677.8 1,643.7 34.1
September 2009 1,641.6 2,069.0 -427.4
October 2009 1,502.9 1,989.8 -486.9
November 2009 1,070.0 1,724.1 -654.2
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December 2009 1,406.7 1,784.6 -378.0
TOTAL 2009 16,441.4 21,166.0 -4,724.6
2008 : U.S. trade in goods with India
NOTE: All figures are in millions of U.S. dollars on a nominal basis, not seasonally adjusted unless otherwise specified. Details may not equal totals due to rounding.
Month Exports Imports Balance
January 2008 1,046.6 2,275.6 -1,229.0
February 2008 1,226.2 2,103.6 -877.3
March 2008 1,446.0 2,251.2 -805.2
April 2008 1,104.6 2,127.1 -1,022.5
May 2008 1,444.1 2,183.9 -739.9
June 2008 1,828.3 1,877.4 -49.1
July 2008 1,823.7 2,066.1 -242.4
August 2008 1,863.9 2,222.6 -358.7
September 2008 2,030.9 2,393.6 -362.7
October 2008 1,640.4 2,441.8 -801.4
November 2008 1,204.4 1,914.2 -709.8
December 2008 1,023.0 1,847.4 -824.4
TOTAL 2008 17,682.1 25,704.4 -8,022.3
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There are lot of changes, evolutions and emergence of the Natural Stone Power Centres, while in the major consuming markets there are no big changes .and they continue to be the major users and buyers. But, when we consider the natural stone operations from mining, processing and marketing as an integral function in the Stone sector, we have to zero down to only six countries. They are well recognized as the new global stone centers for international marketing and servicing and they are Italy, India, Brazil, Spain, China and Turkey. There are other countries too which continue to playa dominant role in the Stone Sector and they are USA, Canada, South Africa, Saudi Arabia, Norway, Finland, Zimbabwe etc. These countries are also strongly supporting the stone sector, but the natural resources, varieties and suitability of materials for all purposes are limited. There are also certain countries whose stones are becoming significantly popular in the recent years. They are Egypt, Iran, Namibia, CIS countries, some African countries etc. and we can point out each country is bestowed with some stone or other. But, however, I am not narrating about each country and each stone and their potentialities.
If we take Spain, it has got beautiful marble and limestone varieties. When we consider Norway and Finland though they are world renowned in some of the special materials, the varieties are again limited. They are not having global level processing facilities like Italy or Spain. When we focus on USA and Canada, they are the largest world market for natural stone industries and almost all the exporting countries focus their supplies to North America. But, the materials going out of USA and Canada are again not too many. But, still they have many granite varieties suitable for projects and monuments as also they have some marbles and limestones. When we consider processing facilities for building stones, there are only limited factories who, of course have got global standards.
Then we come to South Africa, Zimbabwe and Saudi Arabia. Zimbabwe has only black granites and there are no processing factories. These black granite blocks are exported to many countries. Similarly, South Africa has got about half a dozen stone varieties. But the factories are not big enough to supply to the global market. After considering these countries, we have to necessarily give higher weightage to the six countries.
India in' Top Six
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Similarly, France is well known for its limestones and a couple of granite varieties. Their processing factories are limited to monuments and a few building stone factories.
After a detailed study of the world granite resources, the capacities and future potentialities and also their emergence as processing centers with fabrication facilities having latest machineries and technologies with competitive advantages, we have to inevitably consider India, Italy, Spain, Brazil, Turkey and China as the World Stone Centres.
In this also, there is a kind of perception that Italy which is the world stone capital is fast losing its competitiveness in granite processing, while their marble processing capacities are further increasing. In Brazil, granite varieties are plenty and so also their block exports are also growing world over.
They are emerging as granite processing center with local and overseas investments. Their shipments of containers to many countries directly as processed granites also signify their upgradation.
Similarly when we consider China, their emergence as the largest Japanese monument manufacturers and exporters of economically priced granites ranging from the types of Sardinian grey types, Porino pink types and some of the materials similar to South Korean and Japanese has given them a leverage of fast marketing due to their competitive prices and proximity to Japanese market.
They have also emerged as one of the largest importers of natural stones from many countries for their own direct consumption and as well as re-exporting to many countries.
Many investments from Taiwan, Japan, Hong Kong, Singapore and a few other countries have helped them to grow fast in the natural stone sector. They also have many varieties of marble, sandstone, slate, quartzite etc. The consumption of granites in Chinese domestic market and the export front will continue to grow and they will come with many more new granite varieties.
120 Indian Varieties
Coming to India, we have to rank India mainly for the granite exports followed by marble, sandstone, slate and quartzite. There is a history of nearly over 50 years about the stone exports from India. India continues to introduce many new granite varieties and as on today for both building stones and for monuments there are over 120 varieties, probably the largest varieties in the world. The global market feels that this is the only country from where all dominant granite colours like Black, White, Red, Blue, Green, Yellow, Brown, Violet etc. are available for the world marketing as well as many variegated granites. The range of the qualities unlike China are more expensive due to its uniqueness, beautiful colours and strength. The processing of the Indian stones with the modern factories are spread over the Southern India and Western India including Rajasthan. Therefore, India is Emerging as the largest exporters of dimensional blocks and one of the largest exporters of monuments, building stones and tiles in granite and as well as marble, sandstone and slate. Of
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course, we cannot compare the Indian marble producing capacity with Italy, Turkey or Spain. But, in the Asian region, India is definitely the largest exporter of marble and calcareous stones.
There are also either marble and granites or only marble and limestones from many countries in the globe, as every country will definitely possess some varieties of natural stones, since it is a natural geological phenomena. But, these six countries will continue to service the global market.
India is also attracting overseas investors in the stone sector through many factories. When we come to only granites both uniformly grained and variegated with movement designs, it looks the race will be always between India and Brazil. But, India has got an edge over Brazil, as the varieties are- more in different colours.
The major stone consuming countries like USA, Canada, Europe, Japan, China, Middle East and Far Eastern countries have now fully recognized the Indian expertise and capability in supplying the required qualities and quantities.
In the last couple of years, the Indian granite quarries have transformed tremendously by technologically upgrading the productivity and quality. All major quarries in every region are using Diamond Wire, Derricks, Front End Loaders, Excavators and some quarries where the materials are very hard and when they are far away from the dwelling places also use Jet Burners. As a result, India is producing good sizes of blocks in reasonably good shapes and in good qualities.
Market Acceptance
As far as the quality standards are concerned, for over two decades India is producing very good monument blocks from the quarries and we could see the ready acceptance in the very high quality conscious markets like Japan, Germany, European countries and North America.
But, the development of the building stone Industry has come to age in the last decade to international standards. The reason for the slow evolution of the building stone industry was mainly due to the innumerable varieties of granites numbering over 90.
Since we have uniform grained stones and variegated movement materials, the standardization of the quality parameters depending upon the market acceptance became settled rather slowly, as each market perception is different from the other.
In the Granite Sector, the Indian potentiality with the promotion of selected beautiful materials suitable for monuments, building stones, tiles and for special works have come to be well recognized. Similarly, the growth and the increased volume and value of exports in building slabs and monuments testify that India brand Image has been strongly built up in this sector world over. Every stone is individually branded and many countries have registered them as Indian and International Trade Marks and in many of the foreign Countries the engineering manuals recognize these facts and use the Indian brand names as well.
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The excellent quality products and the consistent supply at competitive rates have rightfully placed India at a higher place.
In the Marble, Sandstone, Quartzite and Slate Sector also India has come of age with regular exports of blocks, slabs and tiles and other finish as per the market demand. Particularly after the big seminar and exhibition in Birmingham, U.K. jointly organized by CAPEXIL and the Indian High Commission, London where the leading European architects and businessmen were present, the awareness and demand for all these types of stones have greatly improved. Similarly, in the whole of Europe and North America with the regular promotion of these stones in Stona Fair at Bangalore and India, Stonemart at Jaipur and through the participation of many Indian Companies at Nuernberg, Verona and many fairs in USA etc., the market is looking up for Indian decorative stones.
The Marble, Sandstone, Quartzite, Slate and Limestone Sector has created a vibrant awareness projecting the Indian potentialities and capabilities. One of the very important factors which deserve to be complimented is the number of companies' direct participation in promotion of these stones in various countries by which this growth has been steadily increasing. The presentation of the stone products, the catalogues and websites are very eye-catching.
The technical institutions, colleges and universities end their students regularly to many mines and factories for training and project study. As a matter of fact, the natural stone is the only mineral based product which is going for non-mineral application purely as an aesthetic product just for beautifying and decorating buildings and environment. Therefore, a stone even in rough or finished form can never be commercially equated to a mineral though only at the mining stage the stones are treated as mineral products.
Support Needed
The natural stone industry is a peculiar and tough industry involving risk factors. But, the basic requirements are capital intensive, labour intensive and power intensive. These factors need to be well recognized by the Government and the financial institutions. They must support this natural stone sector with preference, as the stones are normally available in drought prone dry belts of India and offering livelihood and organized jobs for the community around those areas. When we consider the natural stone sector as the second largest exporter after iron ore which is exporting several million tonnes in bulk form, the contribution of the stone industry is definitely creditable and it deserves further encouragement and support of the Government and the financial institutions.
In order to fully energise the natural stone sector, I am sure, the State Governments and the Government of India will together support and strengthen the competitiveness of Indian stones. Definitely in the last two decades, the perception of the Government has greatly changed and there is a flexible entrepreneur friendly approach which is very much welcome. The most important f.actor that the Indian entrepreneurs in the natural stone sector are looking for international level policy framework and support measures. All the non-competitive disadvantageous factors need to be changed and converted into Indian advantages.
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2.6 STONE MARKET OVERVIEW
Over the past decade, the international stone industry has seen some dramatic
changes. In the American marketplace, stone has moved into the mainstream, and it
is being used at almost every level of the building trade. The trade has grown
tremendously, and as a result, virtually every sector of the industry -- from importers
to fabricators and installers -- has changed the way it does business.
In the commercial sector, stone is still a staple for designs where the goal is to impart
a feeling of quality, and it is being used extensively for interior and exterior
applications. But the biggest changes are being seen in the residential sector. Stone
is no longer limited to wealthy homeowners. It has found its way into middle class
homes, and it is found in “everyday” retailers such as Home Depot, Lowes and
others.
Facts and figures
Because of the way natural stone is sold and processed, it is difficult to quantify the
size of the stone industry in the U.S. There have, however, been commendable
endeavors recently. According to a report by Catalina Research Inc. and Ceramic
Tile and Stone Consultants (CTaSC), a total of $3.3 billion worth of stone was
consumed in the U.S. in 2002. This represents an increase of 50% from 1998, when
consumption in the U.S. was reported at approximately $2.2 billion.
But the dramatic growth in the U.S. stone industry began much earlier in the decade.
According to the U.S. Department of Commerce, a total of over $1.28 billion worth of
stone was imported into the U.S. in 2002. Just 10 years ago, in 1992, that total was
$417.4 million, or less than a third of 2002’s figure.
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Looking at specific materials, the U.S. Department of Commerce classifies marble,
travertine and limestone under various categories of “calcareous stones,” and so
they must be measured as a combined total. In 2002, this total was $638.7 million,
up from $230.3 million 10 years earlier. Granite imports went up by an even higher
percentage, reaching $523.8 million in 2002, up from $115.5 million in 1992. Slate
imports also increased by a significant factor, rising from a total of $21.6 million in
1992 to a total of $80.8 million in 2002. Imports of other stones, such as sandstone,
porphyry, basalt, dolomite and quartzite actually decreased over the same 10-year
period, dipping from $50 million in 1992 to $39.9 million in 2002.
Fabricator optimism
One of the fastest growing segments of the U.S. stone industry is granite kitchen
countertops. We are seeing new fabricators target this market on a daily basis. Since
the start-up costs for this type of endeavor are relatively low, it is quite tempting for a
shop foreman or experienced worker to go out and try to establish their own shop.
But despite the many new entries in the field, the general feeling among stone
fabricators is that there is enough work to go around.
According to a survey conducted by BNP Media (Stone World’s parent company) a
total of 81.0% of stone fabricators expected the stone market to increase in 2004.
Virtually all of the other respondents (18.2%) felt that business would hold steady
this year, and a very small portion (0.7%) predicted a decline. Over the next 5 to 10
years, 83.2% of stone fabricators said they felt the stone market would grow, and
15.3% said it would remain the same, with only 1.5% expecting business to decline.
Similar optimism was found by the Marble Institute of America (MIA), which
conducted a survey at the December 2003 StonExpo trade show in Atlanta, GA. The
Institute’s survey revealed that the majority of stone professionals in attendance
expect 2004 to be a better year for their businesses and the U.S. economy. A total of
85.4% of the 400 attendees personally surveyed by the Hudson Economics Group,
L.L.C. are optimistic about the U.S. economy for 2004. Moreover, 26.6% believe the
economy will grow 1-2%; 24.3% think it will grow 2-3%; and 13.9% expect 3-5%
growth.
Both the BNP Media and MIA surveys also revealed that fabricators were planning to
invest money back into their businesses over the coming year -- a practice that is
sure to bolster further growth.
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47
CHAPTER 3.
U.S. market analysis
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3.1 Market analysis For stoneU.S. marble market, mainly to the main board, mainly engineering specification sheet is the demand for mainstream, but the U.S. domestic interior marble plate on the market demand is very large, it can be material (stone) and building materials supermarkets (Stone) store has sold more than the basic specifications of the stone can be seen Bo board. While U.S. imports a lot of marble slab products, almost more than double the granite slab. Consumption in the U.S. marble building stone products, decorative stone and the number of either.
United States, the original marble surface of the main processing method is polished into after 2000 because of environmental reasons (to prevent light pollution) and to matt processing based (in fact, almost polished and matt), but with the current fashion trends stone change, since the latter half from 2007 to antique processing into new trends. In fact, there is also a popular trend to lead Italy, but also Italy, the provisions of previous legislation on the slippery stone impact.
U.S. home improvement market is huge demand for fireplaces, accounting for nearly 30% of the global market share of the fireplace. Mainly marble fireplace, followed by the granite fireplace, marble fireplace, granite is almost twice the demand. United States, concentrated in large fireplace needs of the eastern United States coastal and Great Lakes surrounding region, many of California's demand. Comparison of the United States preferred a black marble fireplace and a white fireplace, followed by green and beige. From the fireplace design styles, the Victorian-style fireplace comparison by the United States consumers. However, as income the financial turmoil, the U.S. dropped the marble fireplace a lot of market demand, fell by almost 4 percent.
U.S. home improvement market demand for stone countertops is very large, in the United States where all the family you can easily see the natural stone countertop do, such as kitchen countertops, washing table, operating table, the table, bus station table, desktop, window, counter and so on. Marble table in which the use of very large, but not limited to bathroom, living room, etc., many of them will be the marble used in the kitchen, while marble is not suitable for the kitchen environment, but perhaps because foreign Well Ning conditions better, while foreign technology more advanced stone conservation, all the family kitchen with stone decoration, about 1 / 3 of the use of marble. However, marble is relatively speaking, most Americans still prefer to do with granite countertops, especially the kitchen countertops, marble countertops granite countertops using two almost only the 1 / 6.
U.S. demand for marble vanity as large and excellent performance as marble carving and texture, and therefore artistic marble wash basin style and design is bold and
49
innovative, style update speed. However, smoking hand-basin marble consumer demand is close to half of granite wash basin, but full year sales were relatively stable, not as granite vanity short season as sales significantly, very different.
American Marble Mosaic market is very large, the world's largest consumer market of marble mosaic. One of the marble mosaic art of mosaic and water jet also a great demand, the proportion of the total demand for marble mosaic 1 / 4, and the demand for granite mosaic quite.
U.S. consumer market leading marble stone shaped products include: fountains, stairs,, sculpture, columns, tombstones, line, terrace (pavilion), marble vases and railings may be less. And granite products, marble market in the United States the phenomenon is very common custom, customized products are the main table, fireplace, bathtub / shower seats, stone furniture (tables and chairs) and so on. But strange is very little customization basin are purchased by manufacturers design models.
3.2 U.S. marble market demand analysis:
United States, the greatest demand on the marble top 10 states (regions) are:
1. Texas (Texas)
2. Vermont (Vermont)
3. Florida State (Florida)
4. Georgia (Georgia)
5. Oklahoma (Oklahoma)
6. New York (New York)
7. Louisiana State (Louisiana)
8. Missouri State (Missouri)
9. Colorado (Colorado)
10. North Carolina (North Carolina)
United States, the greatest demand on the marble top 10 cities are:
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1. Austin (Austin)
2. Phoenix (San Antonio)
3. Houston (Houston)
4. Dallas (Dallas)
5. Miami (Miami)
6. New York (New York)
7. Richardson (Richardson)
8. Atlanta (Atlanta)
9. San Francisco (San Francisco)
3.3 U.S. industry unification
Despite the increased level of business among the U.S. stone industry, there are still
several significant challenges. Perhaps most daunting, imitation stone products are
being marketed by large corporations, such as DuPont. Very often, these firms are
promoting their products as a superior alternative to natural stone in terms of
aesthetics and durability. And given the fact that the majority of stone-related firms in
the U.S. are smaller companies with limited budgets, it is difficult to compete with the
big advertising dollars that these corporate giants are spending.
To combat this, the Natural Stone Council (NSC) was formed to design and
implement solutions to this challenge, now and for the future. Made up of a diverse
group of stone industry businesses and trade associations, the NSC’s mission is to
raise the level of awareness and education of natural stone in the North American
market. By pooling resources within the NSC, the stone industry is looking to
collectively make a difference in promoting its products to consumers and decision-
makers in the design community.
In its first year, the NSC has noted admirable support (see “Industry support for
Natural Stone Council is rapidly growing” in this issue’s Forum section). The NSC
has raised nearly $300,000, with the largest donation being a grant of $100,000 from
51
the StonExpo Foundation, which was derived from the revenues generated by the
StonExpo trade show. Additional funding has come from members of the MIA, Allied
Stone Industries, Indiana Limestone Institute, National Building Granite Quarries
Association, Building Stone Institute, Elberton Granite Association, and American
Monument Association.
Individual firms have also pledged their support, and at the recent StonExpo, the
NSC’s booth included a sign-up board for companies who wanted to contribute to the
Council’s collective efforts. In a heartwarming show of industry support, dozens of
firms signed on to donate to the NSC while in Atlanta.
The NSC’s largest initiative yet will take place in June at the AIA National Convention
and Exposition in Chicago. The Council will be exhibiting in one of the show’s largest
booths, and it will be showing a broad range of stone varieties and applications, with
information on their properties, use, cost, installation and recommended care. The
NSC has also developed a CD/DVD that presents the story of natural stone -- from
quarry to installation. It also includes sources for additional technical information on
natural stones and their applications as well as contact information on the stone
companies and organizations that are supporting NSC. The CD/DVD also will be
available on request from NSC following the convention.
Following this endeavor, the NSC will be working on a branding campaign for natural
stone targeted directly at consumers. This will include a seal to identify whether a
material is authentic natural stone.
In addition to its support of the NSC, the MIA has also executed a number of
initiatives to collectively benefit the stone industry. These programs allow U.S.
members of the MIA to collectively save on everyday costs, such as energy and
freight, as a result of new alliances with the Institute.
To summarize, our industry is perhaps more diverse and more international than ever. It is also larger than ever, and the collaboration among industry members must continue to maintain this growth and success. There are many challenges to our industry -- both known and unknown -- and our continued unification will meet these obstacles. American Stone Market Overview:
Stone Market in the United States is the world's largest consumer market in stone, stone about the world around 20% of the consumer market. Since the constraints in the United States laws and national stone industry is not well developed, its domestic consumer market the basic stone rely on imports to meet the U.S. stone imports
52
ranked first in the world for many years, domestic demand is 80% stone rely on foreign imports.
Consumer demand in the U.S. mainly stone granite and marble (and some include travertine limestone) mainly sandstone, slate, quartz stone, giving the proportion of various species of stone is: 50% of granite, marble, the other 45% stone about 5%. Although currently the dominant granite, marble and granite, but the share ratio is reduced further constant which, according to experts estimate that around 2015, almost marble market share will expand to 55%, while the granite will be reduced to 45%.
As the marble stone in the U.S. consumer market are in high-end products, its relatively high end retail price, so although the U.S. consumer market by the financial turmoil, weak demand, purchasing power decline, but instead as low purchasing power of consumers to buy cheap tiles, or use cheaper granite price (before "of the U.S. market demand of granite," the article has introduced to the consumer for cheap / low demand for granite has increased among), the U.S. domestic market for low-end Some marble products demand has not increased, but Google's search requests from quantity can be seen, there is also a downward trend. Basically, marble and high-end consumer or to the main consumer demand, the price is relatively stable, did not receive a big impact, while the marble market sales have been affected, but had little effect, slightly decreased it.
The United States also from Mexico, Indonesia, Brazil, Portugal as part of marble imported, as the number of other countries import relatively less.
53
CHAPTER 4.
EXPORT-IMPORT PROCESURE
4.1Questionnaire
How Do Import Granite?
I am interested in importing granite slabs into the U.S. for fabrication and re-sale
purposes. I would like to know the following:
What license or permits are required?
What forms are necessary to obtain the licenses/permits?
Where can I find the necessary forms?
How much does it cost to obtain the licenses/permits?
How long does it take to receive the licenses/permits?
What is the likelihood of receiving the necessary license/permits?
Is it necessary to obtain separate credentials for each country from which I
would like to import the material or will one set of credentials will allow me to
import from various countries?
Answer
These questions are all very common for first time importers. Because you did not
state otherwise, we’re going to have to assume that you’re importing granite from a
country that maintains normal trade relations with the US (not Cuba or North Korea)
54
and that you have not been previously restricted or barred from importing by US
Customs.
What license or permits are required?
Licensing
No licensing is required to import granite into the US. You can file the import
paperwork yourself without obtaining any kind of license. Since the process can be
cumbersome, it is recommended that you consult with a licensed Customs broker. A
Customs broker will have to have a special license that allows them to transact
Customs business on behalf of others. This is a confusing point for many importers.
Permits
Since you are importing an agricultural commodity – you may be asked to fumigate
your shipment. Granite slabs are potentially home to slugs and other parasites that
might impact the US ecosystem. A Customs broker or freight forwarder can get you
a quote for any fumigation that is required.
What forms are necessary to obtain the licenses/permits?Again, no licensing is required. The basic paperwork that accompanies an import includes:
A commercial invoice and packing list (that you or your vendor must produce). For granite be sure to detail the quantity you are importing in both metric tons and cubic meters on the invoice.
The traveling paperwork created by the carrier (either an airline or steamship line). This if often referred to as a Bill of Lading.
Customs form 3461 (which a Customs Broker will fill out for you) that serves as a formal request to Customs to allow import of the shipment.
Customs for 7501 (which the Customs Broker will also fill out) that serves as a worksheet/receipt for US Customs detailing the amount of duty you owe.
Where can I find the necessary forms?Your local Customs port office will have all the forms on hand that you need or will be able to direct you if you need anything unusual.
How much does it cost to obtain the licenses/permits?Instead of a licensing fee, US Customs collects revenue based primarily as percentage of the total value of goods being imported. Unworked granite slabs will be between 0-3% depending on their level of workmanship (totally unworked or cut into blocks for shipping). The classification for granite is found in chapter 25 of the US Harmonized Tariff Schedule.
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How long does it take to receive the licenses/permits?It may take a few days for your broker to arrange a Customs bond, but no additional approval will be required.
What is the likelihood of receiving the necessary license/permits?Unless you’ve previously been denied importing privileges by Customs or you are dealing with an unscrupulous vendor who has had problems in the past, chances are good.US Customs is there to administer and facilitate international trade while protecting the economy of the United States and will not deny your shipment unless they have good reason.Note: first time importers stand a higher chance of having their shipment detained by US Customs for exam. You may want to pad your budget/timeline to allow for the possibility.
Is it necessary to obtain separate credentials for each country from which I would like to import the material or will one set of credentials will allow me to import from various countries?No licensing is required. You can import freely from Canada, Brazil, Italy, South Africa, etc. with the same process.
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CHAPTER 5
SWOT ANALYSIS OF STONE INDUSTRY
Strength Weakness
1. Different processing machineries are produced by the local manufactures in this sector.2. Banking facilities accessibility.3. Required laws for companiesexist.4. Unproblematic & simplecompanies’ registrationprocess.5. Easy availability of cheaplabor workforce.6. Workforce’s hereditaryknowledge of marble industry.7. Availability of raw material forprocessing.8. Availability of wide range ofmarbles.9. Competition within theindustry ushering it ahead.10. Meticulous entrepreneurskeep running the industrydespite lack of properinfrastructure.11. Sundry investors’ traditionsbring knowledge &technology with them.12. Vast quantity & best quality of Indian marble.13. Primitive nature ofdomestic demand (onlysome standard size).
1. Lack of new trends in theindustry due to lack of research& development.2. Poor product quality due to lackof financial investment in themachineries.3. Slow productivity due toobsolete machineries.4. Primeval mining methods causehigh wastage, i.e. blasting5. Slow production due to lack ofproper availability of electricity.6. Extremely low literacy ratecomes as a hindrance toworkforce in learning new skills.7. Uncertainty among labors due todaily wage system.8. Bureaucracy & corruption causehindrance in the businessoperation.9. Insufficient knowledge ofmarketing & business planning.10. Qualities of Finishedmarble’s product not matchingthe international demand.11. Availability of loans but onhigh interest rates.12. Communication gap amongstthe cluster members.13. Improper support from
government institutions
Opportunity Threat
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1. Increasing global demand formarble & its availability in thecountry.2. Availability of demandedmarble of good quality &variety of colors.3. Growth in the country levelmarket demand due to theincreasing demand by thedomestic constructionindustry.4. Fast improvement in physical& technologicalinfrastructures.5. Governmental workingstructures are beingtransformed to become easy& less complex.6. Availability of the supportinginstitutions in the country.7. Increasing investmentopportunity in marbleindustry due to being aprecedence sector ofgovernment.8. Support to marble sector fordevelopment throughdonation.9. Market segmentation can bedone for rural & urbanpopulation where urbanpopulation can be targetedfor stylish products & services& rural for less complexproducts & services.10. Geographically reachablestrategic locations, i.e.Middle east & other Asian
markets.
1. High competition in theinternational market.2. Increase influx of constructionstone material from Pakistan,China & Afghanistan.3. Short term benefits mentalityleading to selling unprocessedmarble & no planning forcapitalization of resource.4. Better salary packages by urbanclusters attracting skilled workforceof under-developed clusters.5. Poor support from Governmentdepartment & mining disputes dueto regulatory reforms.6. Power supply capacity limitation& increasing power supply cost.7. Unresolved disputes & politics.8. Good & superior substitutes ofmarble, i.e. granite, tiles etc.9. Today’s people’s urge onluxurious lifestyle which oftenmake them choose Italian marbleover the Indian one.10. Marble is available in a genericform & no brand name or image is
found for marble.
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Chapter 6
CONCLUSIONS AND SUGGESTIONS
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CONCLUSIONMy final conclusion is that marble industrial sector can grow in the Indian market if the entrepreneurs investigate the ever pacing environment & adopt various strategies that can boost up their business. Even at its current stage where globalization, privatization & liberalization took place, more than fifteen years ago, the marble industry had been growing slow in comparison to the artificial stone industry.
Inconsistent supply of marble products is one of the major problems in export. All the way through the value chain the way Indian marble is processed, limits the exports & creates inadequacies.
A very few entrepreneurs in the past tried to export tiles to the international market, but they were unable to fulfil their commitments. The major reason was that they were unable to guarantee constant supply of particular products. This problem damaged the reputation of both entrepreneurs & of the exporting country in the international market.
Since this is an unorganized sector & most of the entrepreneurs in this business are carrying it on as their family business, they are not professionally aligned to the business.
Furthermore, infrastructures such as roads, power plants, systems & procedures that are considered as the prime facilitators of this industry are relatively weak. Roads near most of the quarry areas are in vulnerable condition due to which smooth & safe supply of raw material from the mines to the processing units cannot be guaranteed. This goes more vulnerable during bad weather conditions due to which the owners have to shut down units for that time period resulting in delayed lead times and unfulfilled commitments to the clients.Electricity and power is irregular in most factories & quarries, thereby the businesses have to invest additional capital such as expensive generators & automatic stabilizers. This makes it difficult for these firms to experience economies of scale. Indian marble industry still lacks the technical knowledge.Besides, lack of standard & modern equipments & the machineries, energy resources, etc are the other constraints that come as hindrance to immaculately meet the standards of foreign markets in terms of quality that comes out of value adding activities such as polishing & machineries. The other important challenge in demand conditions that exists is lack of understanding of the requirements of the international buyers.There is no security for investors to invest in new technology to dig out marble in an environmental friendly way. One of its reasons is the lack of execution of rules & regulations.On one hand, the obsolete mining practices result in to a threat to the sustainability & inadequacy to the processing units as irregular blocks reduce yield & make transportation, cutting & wastage disposal a costly affair. Most of the raw materials get damaged during mining resulting in extensive squandering of marble reserves that in turn shrink the profit margins. On the other hand, the processing industry uses ineffective & obsolete technology for finishing of the products, thus limiting the
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prospects for exports. This is ascribed to the limited power of the machine-manufacturing sector & forms a backward linkage to the sector.Furthermore, governmental regulations add to the elevation in the cost structure of most of the firms in the industry segment as the cost of production is higher on the incorporation of the royalty fees imposed by the ministry of mines & industries.
RecommendationsIn order to circumvent issues with respect to irregular supply, warehouses can be set-up with a vast space where raw material can be stored to meet any demand from the international market on time. Constant supply can be made certain from these warehouses in case of any dispute between owners of the mines & leaseholders.
Additionally, the potential of the marble business needs to be effectively communicated to the financial institutions so as to facilitate firms with credit upon the establishment of new technologies and other functional aspects of the business. Locally, technology is available to produce international quality products, but the entrepreneurs have to be willing to become role models for the rest of the industry to follow.
Further incentives are needed to be put in place to enhance the infrastructural capabilities to the marble quarries. A proposed remedy could be to encourage state governments to invest in infrastructure and in turn tax the users. This ensures steady revenue generation for the investments that are undertaken.In order to access up to date market knowledge, national as well as international, firms need to invest in market research strategies. This would empower them to generate future demand and supply forecast.
Moreover, the government or private institutions need to be granted incentives to provide protection to the investors & ensure security of investment. Similarly, leaseholders have no knowledge of mines. The government or other agency should conduct studiesto look at the compositions of the mines before leases are distributed.Technological enhancement is the key to improve productivity in this unorganized segment. New technology should be introduced for square block mining. Controlled blasting should be introduced in the mines to reduce wastage & extract blocks of desired sizes.On job training of technical staff should be organized to improve their skills & effectively utilize the available technology.
The government should revamp its policies & pay more attention to the things, which may benefits, the entrepreneurs. Even if the government has been introducing or levying things like high amount of royalties or dead rents, it has to make sure that it all goes for the welfare of mines owners in terms of providing proper infrastructure to them.
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Both, the entrepreneurs & the government will have to come forward to provide a proper heal to this sector. A country full of this natural resource where it also has its good demand in the global market can do wonders if carried on properly.Modernization & professionalism is sure required to take this sector to its new, next phase.In terms of legislation, the minerals law of India supports development of mineral activities, though there is a big gap to be filled by new policies & new strategies/tactics that could practically enforce development of businesses, foreign & domestic direct investments in the cluster, e.g. the ministry could initiate penetration pricing policy for couple of years inorder to attract investment in the cluster.
A private organization & information resource center should be available to circulate all the relevant information about the industry. It will have the authority to standardize the products & their prices. The institution will also maintain quality of the products. It will also ensure proper implementation of government rules & regulations. This organization will also act as a mediator to solve disputes among mine owners & leaseholders& ensure consistent supply of raw material from mines to the processing units.
Experts’ visits of key market players in the marble sector will help them keep them update with new trends in the international market. It will also help in networking & building linkages for future.Recently, the local manufacturers have started focusing on machinery, which can only process the products to semi-finished form and, therefore, requires investment in imported machinery to meet requirements of the international market. The import of modern machinery can create an obvious opportunity for growth in the domestic marble machinery market.Drawing on the location analysis of marble deposits, vast availability of countrywide stone resources, and the regulatory environment, it can be conferred that firms need to work in conjunction with the state governments in order to upgrade their capabilities, infrastructure and smoothening of governmental policies.
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CHAPTER 7BIBLIOGRAPHY
Reports:
Stone Panorama.
Articles:
Business & Economy Business Standard DNA Newspaper The Economic Times
Websites:1.http://www.absoluteastronomy.com/topics/Marble2. http://www.basicsmines.com3. cdos-india.com4.http://www.capaxil.com
