Granite industry cracking

Karimnagar dist hit hard with 80% quarries closed

• Drastic decline in TS, AP exports to China
• Demand slump in domestic market
• Over 10 lakh people to be hit in two States
• Even Prakasam’s famed Galaxy has no takers

Granite industry, which provides direct and indirect employment to over 10 lakh people across Telangana and Andhra Pradesh, is now in a deep crisis with exports to Chinese market falling drastically in the last eight months.

Karimnagar district, which is home to over 180 granite quarries and nearly 90 polishing plants, has been hit very hard with more than 80 per cent of the units shutting down their operations. The situation is not any better in the Khammam and Warangal districts of Telangana and Ongole district in Andhra Pradesh.

“Granite has been one of the main business activities in Karimnagar district, providing employment to over 60,000 people directly and much more indirectly. But the industry is in deep crisis now with exports to China falling steeply in the last eight months,” Rachakonda Tirupathi Goud, president, Karimnagar District Granite Owners’ Association, told The Hans India.

The granite industry in the undivided AP earned global fame with China sourcing extensively from it for the construction in the run-up to the 2008 Beijing Olympics. Thereafter, the industry expanded further as exports to the Chinese market continued unabated. Granite varieties such as Tan Brown and Maple Red from Karimangar were much in demand there, as they were comparatively cheaper than other varieties.

“But the Chinese government changed housing laws recently. As a result, there is no demand for granite products there, leading to fall in imports from India,” Goud explained. As result, most of the units have shut down their operations as they are not in a position to pay salaries. “Monthly production has come down to 4000 cubic metres from as high as 60,000 cubic metres. Of over 180 quarries, around 20 are working now. They will also be closed soon. And all the 1.5 lakh people who depend on this industry for livelihood in this district would be on the roads,” Goud said.

As per rough industry estimates, over 5 lakh people depend on granite industry in Telangana where the sector is spread across Warangal and Khammam, apart from Karimnagar.

“Khammam has 800 granite polishing units and most of them are in crisis now with business declining by as much as 50 per cent in the recent times,” said M Ramamurthy, owner of Satpagiri Minerals.

Nearly 40 per cent of the units in the district are on the verge of closure as they are unable to pay salaries and service debt. “The power crisis and low demand has crippled the industry,” Ramamurthy said. His company also turned a non-performing asset now as he could pay instalments on a Rs 26 lakh loan. “Bankers have put up my house and factory worth over Rs 1 crore for auction, even though I am trying to get the loan rescheduled,” he lamented.

Over 1,000 polishing units and several quarries in Prakasam district, home for world famous Galaxy granite, are more or less facing similar situation. “Exports have come down and there is not much demand in the domestic market. We don’t know what to do now. Livelihood of more than five lakh people will be at the stake while we are not able to pay bank loans,” a granite company owner said.