Shabbir Tiles products have been used in mega projects in Pakistan. "Stile is tiling all Pakistan from homeowner to major projects including historical Gurdwara in Kartarpur, all major metro lines including Orange line and Green line etc.," said Masood Jaffery, Chief Executive Officer of Shabbir Tiles and Ceramics Limited (STCL) while talking to a group of journalists the other day.
He said that they are not only tile manufacturer in Pakistan which is producing the real porcelain tiles but it is also certified on ISO quality standards by one of the world's biggest tile testing laboratories Centro Ceramico, Italy.
Masood said that they have modernised plant and machinery to produce high quality tiles with effectiveness. "We have a wide range of sizes and designs available at a time which no other brand can deliver in Pakistan," he asserted.
Masood said that Shabbir tiles have currently eight emporiums operating in Pakistan with few more in line in Peshawar, Rawalpindi and Multan. "The 'Stile Emporium and Design Studio' is just not a tile retail shop but it's a place where we are offering lifestyle solutions to our customers.
We have also launched size 2x4 feet in porcelain which is one of the biggest porcelain tiles available in Pakistan at the moment with a wide range of designs," said Masood.
Talking about the current business environment in the industry, he said they are producing high quality products despite numerous challenges.
"We have made some operational improvements with recent investment of Rs 2 billion approximately keeping in view our strategic goals. We are optimistic about making progress with ongoing activities in the construction sector," said Masood.
He said the company requires support from the government with regards to reduction in high energy and other input costs. "In order to become more competitive against the imported tiles, the local tile industry needs reduced energy and input costs."
He hoped that they would be able to contribute more revenue to the national kitty with the support of the government through expanding local base and exports and added that direct and indirect employment size of the local tiles market is over 50,000.
In addition the government should provide a level playing field to all the tiles manufacturers in order to increase competitiveness, create job opportunities, and bring in investment from new and existing players alike.
New players which are coming in special economic zone are getting 10 years tax benefit whereas existing players are not getting any tax benefit while expanding their facilities through expansion.
"Local tiles industry requires support of the government to curb smuggling of Iranian tiles in the country which is hurting not only local manufacturers but the government revenues as well," said Masood.
He said competition in the industry will be good for improving the quality of local products while it would also give more bargaining powers and choice to the consumer.
Masood said that the main raw material clay is only around 25-35 percent of the total cost whereas other major components of the cost are labour, energy and transportation. "And these other costs have increased significantly over the last few years. Also, Pakistani rupee faced huge devaluation against the US dollar in recent times," said Masood Jaffery.
He said Pakistan has all the resources for a resilient tile manufacturing industry but challenges like unfair imports/smuggling and rising energy and manufacturing costs amid low ITPs are hurting this industry's potential.
Copyright Business Recorder, 2019