ANALYSIS OF PAKISTAN INDUSTRIES

MARBLE AND GRANITEINDUSTRY

SHAFQAT ALIALI TABISH

MOHAMMAD ZOHAIR

AGENDA• INTRODUCTION• HISTORY• IMPORTANCE & USES• WORLD SCENARIO• PAKISTAN SCENARIO• IMPORTS AND EXPORTS• PROBLEMS• GOVT. POLICIES AND STEPS• FUTURE PROJECTIONS• CONCLUSION• RECOMMENDATIONS

INTRODUCTION

Marble is a crystalline, compact variety of metamorphosed limestone, consisting primarily of calcile (CaCO3), dolomite (CaMg (CO3)6) or a combination of both minerals.

Granite is igneous rock of visible crystalline and formation and texture. It is composed of feldspar (Usually potash feldspar and oligoclase) and quartz with a small amount of mica (biotite and muss covite) and monor accessory minerals.

HISTORY

• Marble and Granite has been mined and cut for centuries.

• Mass production was introduced in the 20th century.

• In 1960’s, mines development was initiated in Europe.

• The stone industry registered an annual growth rate of 13.3% since late 70’s.

WORLD’S TOTAL PRODUCTION SINCE 1970’s

YEAR MARBLE 000 TONS

GRANITE 000 TONS

1976

1986

1996

1997

2002

13600

13130

26450

27650

50 MILLION

3400

7385

17625

19350

N.A

HISTORY (cont:)

• In Pakistan, this industry started to develop in the last 60’s without any quality consideration.

• At that time, most of processing equipment was locally made at Gujranwala and Lahore.

• In mid 70’s, few plants were imported from Italy, but were 2nd generation plants and had no quality consideration.

• During late 70’s, few large projects and wealthy private housing clients brought imported granite tiles and introduced quality in Pakistan.

• In last decade, very few units were established in accordance with international standards.

IMPORTANCE & USES

• It contributed in the GDP at a percent of 0.5% (2004-05).

• It’s demand increases with investment in construction sector.

• It is used in buildings, masjids, and homes.• It is also used in statues and monuments.• It create large number of jobs.• It’s forward and backward linkages also

provide jobs to many people, i.e. Non-Skilled; Semi-Skilled & Skilled Labors.

World scenario

• Dimensional stone are produced in more than 42 countries of the world while 12 of these producers are dominant in the international market i.e. European countries and 3 from Asia and Africa.

• A major part of production is consumed locally by the producing countries.

• Today, World’s total production is approximately 65 million tons and consumption is estimated $40 Billion per year.

• Italy is the world leader in marble, granite and other stone sector. It is leading with 17% of the total worlds production.

World scenario (Cont:)

• Almost 50% of the world’s marble output is consumed in the Middle East , Far East and European countries ; therefore, there is a great demand for marble in these regions.

• The international marble & granite trade is marked $3.5 billion or 1.987 million tons in 2002-03 (Pakistan’s share was only 0.047 million tons i.e.2%).

• India has been the main exporter of marble granite for the five years. It capture 15.2% of the world’s total export.

• Italy has been the largest importer of marble and granite for the five years. It accounted for 39.4% of the total imports.

WORLD’S MAJOR EXPORTERS & IMPORTERS

COUNTRIES 2000 2001 2002 % Share 2002

ITALY 350.46

344.48

323.59

39.4

CHINA 100.49

112.47

155.82

19.0

SPAIN 100.11

97.60 102.85

12.5

JAPAN 83.04 81.13 92.38 11.3

MAJOR EXPORTERSVALUE IN $ MILLION

COUNTRIES 2000 2001 2002 % Share 2002

INDIA 102.66

99.58 106.55

15.2

NORWAY 77.02 80.88 86.54 12.4

ITALY 59.21 60.98 63.42 9.1

CHINA 54.04 52.42 51.37 7.3MAJOR IMPORTERSVALUE IN $ MILLION

PAKISTAN SCENARIO• Pakistan’s marble and granite sector is

in its nascent stage of development.• The country is currently mining 40 types

of natural color marble and also dying the marble in various colors.

• Marble, combined with granite is included in the list of sixth largest minerals extracted among coal, chromite, rock salt, limestone, china clay, dolomite, fire clay, gypsum, silica and etc.

• Since 1990 mining and quarrying has consistently contributed 0.5% to the gross domestic product.

• It is providing job opportunity to more than 40000 people.

PAKISTAN SCENARIO• According to estimates, there are 160 million

tons of marble and more than 414 million tons of granite reserves in the country.

• 158 million tons of marble reserves are found in NWFP.

• The process of extraction of marble and granite is very out dated and obsolete. We still use explosives to blast the blocks resulting not only in a high wastage (up to 73%), but also smaller stone size.

• There are 1600 units and 9 units for the processing of marble and granite, respectively.

• There are only 25 to 30 units which have appropriate machinery

• Majority of units operated manually, which causes high rate of wastage.

PAKISTAN SCENARIO

• Pakistan get only 1% share in world total production.

PRODUCTION

TONS

1998-991999-20002000-012001-022002-032003-042004-05

4120005210005420006850001142000

3.3 MILLION

5 MILLION

REGIONAL CONTRIBUTION

BALOCHISTAN:It has nearly 60 operational

mines. Total known reserves of marble are around 2 million tons .i.e. 1.5% of total reserves. It has only 60 small size units.

SINDH: There are 15 operational mines. The

estimated reserves are 1.5 million tons of marble & 1 million tons of granite. It has one large, 180 medium & over 600 small units working.

PUNJAB: It has no contribution to this

sector, but more than 250 medium and small units are working.

N.W.F.P: There are158 million tons of

marble reserves found in NWFP i.e.97% of total reservers.

REGIONAL CONTRIBUTION (cont:)

EXPORT

• Pakistani marble is being export to more than 60 countries.

• The 40 per cent export of the marble was in the shape of handicraft while, the rest of 60 per cent in slabs and bricks form.

• The Exports amounted to approximately $21 million in the fiscal year 2005-06, showing an increase of 28% than 2004-2005 ( approx. $16.4 million).

EXPORT

COUNTRIES

2001-02

2000-01

Bangladesh 967 1000

China 501 415

Hong Kong 386 93

Italy 670 593

Saudi Arabia 196 235

USA 1712 2384

Value in 000$

• Major countries include Bangladesh, China, Hong Kong, Saudi Arabia, USA, Italy, etc.

IMPORT

• Pakistan only import the machine for the process of mining, polishing and cutting etc.

Values in US $

  1998 1999 2000 2001 2002Total 2638 2845 3326 3093 2944

% 100 100 100 100 100

Italian

Share 438 452.4 6601 606.7 479.5

% 16.6 15.9 19.8 19.6 16.3

PROBLEMS1. Lack of proper machinery to produce quality

production.2. Lack of awareness and facilitation in

selecting appropriate tools for different tools.

3. Untrained workers.4. Non existence of quality control prices.5. Poor raw material supply.6. Lack of distribution channels including raw

material and finished goods warehousing.7. Incapability in supplying consistent product.8. Ineffective marketing strategy.

GOVT. POLICIES & STEPS

• The federal govt. is inviting the investors, both local and foreign, to invest in marble & granite sector.

• The Government also directed the Industrial Development Bank of Pakistan (IDBP) to setup a marble processing plant in Quetta for which the provincial Government would provide land. The SMEDA was also directed to provide guidance and cooperation to the industrialists for establishing marble & granite processing plants in the province.

GOVT. POLICIES & STEPS (cont)..

• The Prime Minister of Pakistan announced that an international standard Marble Training Institute would be setup in industrial Unit phase 1 , to promote skilled labor force which would ultimately contribute to the growth of this industry and promote its exports. He urged the private sector to come forward to exploit huge wealth of untapped mineral.

GOVT. POLICIES & STEPS (cont)..

• Last year in 2006 President of Pakistan inaugurated the “marble city” at Gaddani and assured the manufacturers that mining would be undertaken latest technology to avoid wastages. About 300 units would be setup for the marble city on some 600 acres and investments from the citizens of Pakistan from USA, JAPAN, SPAIN and UAE. He also assured other measures to help marble industry as they have failed to utilize boom in marble industry.

FUTURE PROJECTIONS

• It is forecasted that the production increases with a compounded annual growth rate of about 8% per annum.

YEAR PRODUCTION 000TONS

2010 138750

2015 206240

2020 306500

2025 455000

FUTURE PROJECTIONS

• In Pakistan, this sector has a long-term potential, which is ensured by large local reserves, and a growing global market.

• The export estimate that the country’s export of marble, which is presently $7 million, can be increased to $40 million within 3 years.

• The experts estimate that the country’s will be increase from $7m to $40m within 3 years. Provided wastage is reduced and reserves should be exploited and market properly

Conclusion • This sector needs to be organized on modern

lines. The induction of modern technology in this sector will increase efficiency of processing units. Improving the standard can only increase the demand of Pakistani products in international market.

• This sector has great potential to contribute to the national economic growth and for the generation of employment mostly in the rural areas.

• This sector also needs be organized scientifically with a consistent follow-up by the ministry of industries and production to achieve the export target of $500 million.

• If the sector is scientifically treated, it can generate more employment to 10000 to 50000 people.

RECOMMENDATIONS

• Government should make a policy.• They provide licenses to the firms,

discovering marble reserves in previously un explored area.

• Private sector should be motivated by giving incentives, security, etc for making investments.

• Technology should be upgraded.• This sector needs better marketing

campaign.