One in five tile plants may shut as gas prices drive industry consolidation: Somany Ceramics CEO Abhishek | Interview
Rising gas prices due to war in the Middle East are likely to accelerate consolidation in India's tile manufacturing sector, with nearly 20 per cent
Rising gas prices due to war in the Middle East are likely to accelerate consolidation in India's tile manufacturing sector, with nearly 20 per cent of the country's inefficient tile plants expected to shut down in the coming years, according to Abhishek Somany, Managing Director and CEO of Somany Ceramics. In an exclusive interview with LiveMint at the company's Noida office this week, Somany said higher energy costs, expensive imported machinery and growing inefficiencies among smaller manufacturers are reshaping the industry, particularly in Gujarat's Morbi cluster, the country's tile manufacturing hub. Despite these challenges, Somany remains optimistic about demand prospects, citing a strong real estate pipeline, increasing adoption of large-format tiles and sustained growth in commercial construction. Edited excerpts Q: Tell us about the manufacturing and revenue structure of Somany? A: The company operates seven tile factories in total: one in the north, one in the south, one in Ahmedabad, and four in the Morbi area of Gujarat. Additionally, we have one sanitary factory in Gujarat and one bath ware factory located in Punjab, near Chandigarh. Beyond tiles and sanitary ware, we have adhesive factories located in the north, south, and west plants. Tiles account for approximately 84 per cent of total revenue, while sanitary ware, bath fittings, and adhesives account for the remaining 16 per cent. Q: What was the last quarter revenue? A: For the quarter ending 31 March, 2026 (Q4 FY26), Somany reported a consolidated net sales/revenue of ₹817.93 crore. This is 6.36 per cent increase year-over-year compared to the same period in 2025. Q:What about capacity, investment, and expansion?
A: Somany recently invested ₹600 crores over the last 30 months to scale up our overall manufacturing capacity. Also Read | Kajaria Ceramics’ price hike to cushion realization and margin Currently, the company has enough capacity; we sold 72 million sq ft per annum last year while running at about 79 per cent capacity. View full Image View full Image For the quarter ending 31 March, 2026 (Q4 FY26), Somany reported a consolidated net sales/revenue of ₹ 817.93 crore. This is 6.36 per cent increase year-over-year compared to the same period in 2025. This existing capacity is expected to support another 400 to 500 crore rupees in revenue and may last until mid-next year before new expansion is required. At present, the focus is on investing in existing plants to balance equipment and upgrade the value-added mix. Q: Any plans to expand export capacity? We are 98 per cent domestic and 2 per cent export market, with a philosophy that money is to be made in India. While we export to 80 countries, our primary focus remains local. Q: There have been concerns regarding gas supply due to war? A:Fortunately, we at Somany did not face the gas shortages or shutdowns that impacted the Morbi region for 40 days. This stability was due to their loyalty to Indian PSUs (Gail in the north, GSPCL in the west, and IOC in the south) rather than switching to spot-priced propane or LPG. We were affected indirectly and our supply was affected in April. Q: Has the war affected the industry? A: I would say increasing gas prices due to war are helping consolidate the gas industry.
The BriefWire