Sector Overview
Rajasthan is endowed with rich traditions in the mining of ceramic materials. The deposits of ball clay and fire clay at Kolayat, Silica Sand at Bundi and other locations, Feldspar of Beawar and Ajmer, Gypsum from Nagaur, Ganganagar and Bikaner, China Clay from Neem Ka Thana, Limestone from Gotan, Talcum from Dausa, Dolomite from Bhilwara, Alwar and Udaipur are known for their quality in the ceramic world. Almost all major minerals required for Ceramics & Glass sector are available in Rajasthan. More than 70% bone china crockery in the country is produced in Rajasthan.
Currently around 500 ceramic industries, covering Glass and Mineral Grinding units are operating successfully in Rajasthan. In view of huge natural resources and manpower availability, there exists a considerable scope for further investment in this sector.

Key Segments/Products

• Tiles
• Sanitary ware
• Insulators
• Table ware
• Refractories
• Glass

Key Players

French Major Saint Gobain Glass (I) Ltd in Kaharani Industrial Area of Bhiwadi has embedded its roots in Rajasthan. With an investment of Rs1000 crore the project will be a World Glass Complex housing a multitude of manufacturing facilities. 

Kajaria Ceramics Ltd., Bhiwadi, the largest manufacturer of ceramic tiles in India has a manufacturing plant at Gailpur, Rajasthan with an annual capacity of 14.1 million sq m.

Liberty Whiteware Ltd. has Sanitary-ware unit, located at Neemrana in Rajasthan. The company has an annual production capacity of 500,000 pieces per annum.


JCPL Ceramics Plant is spread over 35,000 sq. yards on the outskirts of Jaipur.  It has one of the most innovative and huge Bone China plant with capacity of 1,500 tonnes per annum in the Country.

Other Investors

• Modern Insulators Ltd., Abu Road
• EID Parry India Ltd., Alwar
• Orient Abrasives Ltd., Bhiwadi
• Orient Refractories Ltd., Bhiwadi
• SS & Jaipur Glass & Potteries
• Ceramics Pvt. Ltd., Jaipur
• Bharat Potteries Ltd., Jaipur
• Ambe Syned

Strengths

• Wide range of economic reforms, availability of low cost of labor, access to a variety of raw material and intermediate products at reasonable cost, a large domestic market, a mature financial sector and availability of raw materials required for the Ceramics & Glass industry
• The State has already seen an investment of Rs5000 crore in the Ceramics & Glass industry.
• RIICO is developing Rajasthan as a Ceramics, Glass & Allied Products Hub and is facilitating commissioning of projects in the State.
• Energy Efficient: Piped Natural Gas will be available soon within the State and this will encourage more investment in the Ceramic, Glass & Allied sectors.
• Some of the global giants have already set up huge manufacturing facilities in the State.
• Delhi-Mumbai Industrial Corridor (DMIC) passing through the State will provide excellent logistic & transportation infrastructure.
• Vicinity of huge consuming population with respect to the ceramic & glass industry in National Capital Region (NCR).
• An exclusive Ceramic hub with gas pipeline being developed by RIICO at Ghilot near Neemrana.
• The government also plans to provide special package of incentives to the ceramic and glass units coming up in the state.

Ceramic & Glass (Industrial) Zone, Ghilot
To exploit available potential of Rajasthan, a dedicated 650-acre Ceramic & Glass (Industrial) Zone is being planned at Ghilot near Neemrana in Alwar district of Rajasthan which will be a part of Delhi-Mumbai Industrial Corridor (DMIC) along with excellent logistics facilities. Ghilot is located approximately 100 km from the Delhi airport, off the Jaipur-Delhi National Highway (NH-8) along the interstate natural gas pipe-line. The Zone promises to be an ideal location for units manufacturing ceramic floor tiles & wall tiles, sanitary ware, porcelain & bone china tableware, ceramic colors & pigments, glass insulators, float glass, bio ceramics, refractories and industrial ceramics.

Bikaner - A Ceramic Insulator Industry Hub in Rajasthan
Bikaner is one the desert districts situated in the North-West of Rajasthan. Certain parts of the district such as Kolayat, Nokha, Dulmera and Lunkaransar have large mineral deposits consisting of white clay, gypsum, lignite, etc. The annual volume of white clay mined in the region is about 8 lakh metric ton. Rajasthan is a leading producer of clay accounting for 40% of India's production. The quality of clay found in Rajasthan is superior to those found in other parts of the country and is used in the manufacturing of ceramic products.  The availability of white clay has led to the development of pottery units as well as ceramic industry in the region. Despite, being a raw material rich region, the Ceramic Industry is still largely underdeveloped in this region. The availability of good quality clay coupled with locally available craftsmanship gives an opportunity for Bikaner to emerge as an important cluster for ceramics in the country.

Incentives/Policies
Rajasthan Investment Promotion Scheme (RIPS) 2010: The Government has recently announced RIPS 2010 for setting up of new enterprise, enterprises going for expansion, modernization and diversification, and projects set-up for common social good. The new scheme also simplifies the procedure for grant and disbursement of subsidy, and introduces transparency in system, by introducing the system of online disbursement of subsidy.


The highlights of RIPS 2010 are as follows
Subsidies

• Investment subsidy and Employment generation subsidy have been introduced.
• The maximum amount of subsidy shall be 50% of the tax deposited, i.e. VAT and CST or SGST (whenever introduced).
• RIPS 2010 provides investment subsidy to all eligible investors of an amount equal to 30% of the tax deposited, without any linkage with payment of interest and wages.
• Employment generation subsidy has been announced @ Rs.10,000 per employee/annum. For women, SC/ST and persons with disability this amount has been enhanced to Rs.12,000 per employee/annum.
• For entrepreneurs belonging to Women, SC/ST, or person with disability category, an additional investment subsidy amounting to 10% of the taxes deposited has been kept.
• These subsidies have been announced for 7 years, but to give boost to the MSMEs in the notified area, time limit has been extended to 10 years.
• Procedure for subsidy disbursement has been simplified by introducing a Challan for Adjustment through Treasury (Form VAT-37B).

Exemption from Taxes
The RIPS 2010 scheme announces exemption from payment of various taxes to the extent and period as mentioned in the table below:

Category of Investment	Types of Exemption from Taxes/ Duties/ Charges	Extent of % of Exemption	Period of Exemption
1. New Enterprise and Project for Common Social Good	Luxury Tax	100%	7 years from the date of issuance of Entitlement Certificate. However for MSME located in the notified area the period of exemption shall be for 10 years.
	Electricity Duty	50%
2. Investment made for Modernization/ Expansion/ Diversification	Entertainment Tax	50%
	Land Tax	50%
	Mandi Fee	50%
3. Sick Industrial Enterprise for its revival	Stamp Duty on purchase or lease of land and construction/ improvement on such land	50%	One time for each such transaction for the same project.
	Conversion charge payable for change of Land use	50%
	Conversion charge payable for change of Land use	50%

In case of Enterprises going for Modernization/ Expansion/ Diversification, the exemption from payment of tax(es) shall be allowed only to the extent to which additional tax liabilities accrue due to utilization of additional capacity created after Modernization/ Expansion/ Diversification.
RIPS 2010

"Our Rajasthan project is one of the large investments of Saint Gobain in India in the coming decade. The State govt. has been very welcoming and cooperative right from the day the project was conceived. Our experience with BIP has been very positive."
B. Santhanam
Managing Director, Saint Gobain Glass India Ltd.

Last Updated: October 10, 2011