The Hindu Business Line : `Exclusivity, workmanship in monuments our forte'

THE Indian monument industry made its first export to the UK in the early 1930s. Since then the industry has come a long way in exporting monuments, which are of different colours and sizes.

Out of the total Rs 3,200-crore granite and natural stone industry, monuments contribute around Rs 750 crore and the industry is growing at 15 per cent annually.

As of today, 32 varieties of Indian granites are used for manufacturing monuments, which are exported to over 25 countries, including Japan, Germany, France, the US, the UK, Canada, Austria, Australia and New Zealand.

Till a few years ago, India had a major chunk of the international market in monuments. But, the country is losing grip due to severe competition from China.

Mr R. Veeramani, Chairman, Gem Group of Companies — country's top exporter of granite, natural stone and products during 2003-04 with Rs 127 crore of exports — and one of the patrons of the Indian Monument Manufacturers Association, which represent monument manufacturers, spoke to Business Line on the industry's future. Excerpts:

What is the strength of the Indian monument industry?

About 25 years ago India had three or four granite varieties, including black, grey and pink. However, today there are over 100 varieties available across the country, especially in the South. We also import granite blocks from Norway, Finland, the US, China, Brazil and South Africa to do monuments.

The quality of craftsmanship has gone up tremendously in the last few years. Today, we deliver monuments customised to each country. We can find at least six different patterns of monuments with different designs, finishes and workmanship in different thickness. For instance, the Japanese monuments are of exclusive designs, and these types are not used in any other country.

Even in Europe, there are different monuments for each country. In the last 30 years, we have changed the global trend in monuments, and no other country had the blend of granite varieties and workmanship comparable to India's.

How severe is competition in the monument industry?

India used to enjoy a monopoly till a few years ago. But, things have changed in the last few years, and the real competition comes from China. They are beating us in all respects, including craftsmanship, cost, quality and delivery.

This is despite the fact that the Chinese came into the monument industry 20-30 years ago, while India entered the industry 75 years ago. The Chinese Government is also encouraging its exporters by giving various export-related incentives.

What are the drawbacks that your industry is facing?

The lending rates from banks are high. Being an export-oriented unit, we should be given funds at 5 per cent and below from the current levels ranging between 9 per cent and 13 per cent.

Some of the existing units continue to pay interest rates of 15-16 per cent. We need to be given special rates to compete with other countries where lending rates are cheap. The power and fuel costs are also high compared to other countries. For instance, China's power cost is 40 per cent of India's cost. The monument industry uses enormous fuel (diesel, hydraulic fuel and kerosene) and power.

Is logistics still an issue?

It is a major bottleneck for us. Our road and port infrastructure is bad when compared to China. Also, mother vessels, which connect major ports, do not call at major Indian ports. We need to connect vessels at transhipment ports of Singapore, Colombo or Dubai. This increases our freight rates.

For instance, freight for a container from China to any of the US ports is $2,000, against $3,000 from India. It takes 12 days from China to US ports compared to a month from India. Despite many bottlenecks, we are competing in the global market on our strengths of craftsmanship, and a few exclusive granite varieties.

How challenging is mining operations in quarries?

It is highly risk-prone, high labour and machine intensive. If we succeed in one quarry, we lose in five quarries. We do not know what sort of stone is inside the mountain.

If the colour is good, we do not get the right size blocks and vice versa. The success rate is 20 per cent in mining quarries, and the stone recovery is only about 10 per cent. The rest goes waste. This is despite using latest technologies in cutting stones.

What sort of training is provided to workers?

Unfortunately, in India there is no training school or institute to provide training for the 50,000 plus workers in the granite industry, and in the monument industry.

It is the entrepreneurs who have provided the necessary skills and training to these workers. Also, companies bring international experts to train workers on using latest technologies, including diamond tools. Workers have adapted to the changes.

Till a few years ago, we used to import 100 per cent of machinery. But today, around 40 per cent of machinery is indigenously manufactured.

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