1)Implementation of RERA to bring disciplined approach in industry players
Source: State RERA Website, ZebraResearch
2) Reduced GST Rates to augur demand for new houses –
Unorganised industry shifting to natural gas to give impetus to pricing –
Natural gas is key element is manufacturing of tiles and sanitary ware products and has a major share of ~15% in tiles and ~5% in sanitary ware as a total manufacturing cost. These companies have long term contracts with GAIL, GSPL, Sabarmati gas etc for supply of gas and prices are considered either on spot basis or 1/3 month average global crude prices (in USD terms).
Various government initiatives to boost demand for tiles and sanitaryware industry –
1)PMAY Urban and Rural: key catalysts for housing demand
2) Swachh Bharat mission to boost demand for Tiles & sanitary ware products –