Rising gas prices due to war in the 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 .
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 , the country’s tile .
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 . 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, , 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.
Currently, the company has enough capacity; we sold 72 million sq ft per annum last year while running at about 79 per cent capacity.
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 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, 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 due to war are helping consolidate the gas industry. Massive upswing in the market in the near future because houses are being built. At the same time, I see exports going up. On the other hand, I see some consolidation in the industry due to rising gas prices. I see a number of inefficient plants shutting down due to rising gas prices.
I think 20 per cent of tile manufacturing plants in India will shut down. The only way for inefficient plants to survive is to set up new plants. But the equipment comes from . The Euro is now ₹110, and freight costs have risen. Setting up a plant is getting very expensive.
Production will increase overall, but it will be consolidated. Like I said, inefficient plants will shut. I estimate that 20 per cent of about 850 plants in Morbi will shut down.
Something similar to what did to the real estate industry.
Q: Are tiles affordable or a luxury item?
A: Tiles are a misnomer for . I think it is the cheapest product for floors and walls, even more affordable than paint or stone. Tile is one product which is ridiculously affordable.
Tiles can now replicate natural materials like wood, marble, leather, cement, and mosaic to the finest detail.
Q: What is the demand like?
A: All the who launched projects many years ago. All that is coming to the tiling stage now. For us, the next 2 years would be good tail ends.
There is a massive upswing in bigger sizes; 2ft x 4ft is becoming the “next normal,” with floor tiles reaching up to 8ft x 4ft.
We cater to commercial (offices), hospitality, medical, university, and small commercial spaces like Nike, . The retail, but not residential, franchise comprises a major segment of our business.
Q: What are the preferences in retail business?
A: Demand for finishes is split 50 per cent for glossy and 50 per cent for matte. North India prefers glossy finishes due to historical exposure to natural stone, while South India prefers matte finishes due to international influences.
Q: Who is your competition?
A: Out primary competition is the unorganised sector, which holds the majority of the market but lacks the same quality and delivery guarantees.
Ultimate goal is to be a one-stop shop: Abhishek
While is their main organised competitor, we are on the same side of the table in the fight against the . Unorganised sector is the majority.
Q: What is the future outlook?
A: India is poised for growth. We aim to grow at low double digits and envision becoming one of the top 5-10 tile companies in the world. The ultimate goal is to be a one-stop shop and a mandatory part of every consumer’s consideration set when purchasing .
The other objective is to make tiles more readily available, which means we need to increase our retail footprint.