Can export to Brazil and Taiwan after anti dumping duty: Kajaria

“We will now have an opportunity to export to certain countries like Brazil and Taiwan,” Kajaria said.Below is the verbatim transcript of Ashok Kajaria’s interview with Reema Tendulkar & Nigel D'Souza on CNBC-TV18. Nigel: You have been telling us from the past that you wanted a USD 3 per square meter. It has come in at around USD 1.37 is it lesser than what you were estimating. How much lesser and could you give us what is the price differential now after the imposition of this USD 1.37? A: You are absolutely correct; industry was looking at around USD 3. First of all I would like to thank the Ministry of Commerce for taking this positive action. Although, it took little time but I think it is relevant for the industry. The reason being anti-dumping duty were there on vitrified tiles till June 13th and after that Brazil imposed a very hefty duty on China in August 14th as a result of which China started dumping. In the normal circumstances, industry was not affected but after the imposition of anti-dumping duty by Brazil on China, Chinese started dumping in India in a big way. Industry has suffered for almost two and a half years because of that. I think it is a win-win for the industry. It will not only help the domestic industry it will also open up the imports as far as the Indians are concerned because we will have an opportunity now to export to certain countries like Taiwan and Brazil where Brazil has put an anti-dumping duty and Taiwan has totally banned the Chinese tiles. Reema: With an anti dumping duty of USD 1.37 per square meter would the Chinese imports now be more expensive than the Indian manufacturers? A: Yes, definitely. There are two sizes which were being imported in polish vitrified tiles one for 60*60 that is two feet by two feet and another was 80*80. 60*60 not a box will come after today and 80*80 some influx may come in at the ports like Chennai and Tuticorin but that will be very marginal. It will not affect it will definitely help us. Nigel: What is the price difference now between an imported tile as well as our domestic tile? Could you tell us is there a scope that you can go ahead and take some prices increases? A: I won’t say that prices increase will be there because why the price increase will not be there because as you are aware gas prices have come down from January 1st. This has been a win-win for industry. Right now the industry what they would like is to make sure that they take up the market share because lot of market share has been lost in the last one of years because of imports and lot of money has gone in this industry. Nigel: Could you give us the price difference? If you are offered Chinese tile now after this anti-dumping duty? A: Chinese tile will now be expensive by almost you can say about Rs 30 a square meter more which is about Rs 3 a square feet than the Indian landed price. Reema: What was the revenue loss to the Chinese tile makers and now that you don’t expect the competition to come in from Chinese tile makers? What is the revenue opportunity for the industry per se? A: Government will get lot of money in excise duty. Reema: I meant for manufacturers like Kajaria Ceramics and your peers? A: I can give you a small example as far as Kajaria is concerned. Next year Kajaria’s volume growth next year will be 2 percent overall because of this. Like in vitrified we are having a market share of roughly about 40-45 percent and that itself will grow by 5 percent. If you look at the overall company we should have a volume growth of 2 percent only because of this.