‘Morbi’ effect: Anand Mahindra shares how Indian ‘bahubali’ businesses can compete with China

Industrialist Anand Mahindra has once again highlighted an inspiring Indian success story, demonstrating how small-town entrepreneurs are emerging as global business powerhouses. In a recent tweet, the Chairman of Mahindra & Mahindra shared a video showcasing Morbi, a town in Gujarat, and its dominance in the ceramic industry.

The video details how Morbi, covering just 50 by 9 km, has become a global ceramic hub, producing 90 per cent of India's ceramics. According to the video, nearly 1,000 family-owned factories in Morbi have been manufacturing tiles and ceramics since the 1930s, successfully competing with China's pricing and matching Italy’s quality. The video states that these businesses collectively control 13 per cent of the world's ceramic production, creating an industry worth thousands of crores and employing approximately four lakh people.

Maybe we’re not looking in the right places for success stories: Mahindra

“Can Indian businesses compete with China? Maybe we’re not looking in the right places for success stories. I was delighted to see this video on the ‘Morbi’ effect. Agile, small-town entrepreneurs—The ‘bahubalis’ of India.”



This is not the first time Anand Mahindra has championed the resilience of Indian businesses. He has previously shared similar stories about small and medium enterprises (SMEs) thriving in different industries despite global competition. From highlighting India’s prowess in the electric vehicle sector to recognising rural innovations, Mahindra has consistently encouraged local businesses to aim for global standards.

Anand Mahindra’s recognition of these ‘bahubali’ entrepreneurs reinforces the idea that India's business strength is not confined to metros but is thriving in smaller towns as well. If nurtured properly, these enterprises can play a crucial role in India’s journey toward becoming a global manufacturing powerhouse.

However, the industry faces challenges from declining domestic and international demand. Manufacturers are seeking tax relief on gas consumption, specifically requesting a shift from VAT to GST and permission for input tax credit claims. The industry uses about 3 million cubic meters of gas daily. Exports have also decreased due to anti-dumping duties imposed by countries like Saudi Arabia, Qatar, and Taiwan, ranging from 50 per cent to 106 per cent. Exports to the US have also fallen due to ongoing anti-dumping investigations. Trade sanctions on Iran have further impacted exports to Kazakhstan, Uzbekistan, and Azerbaijan by disrupting the Bandar Abbas port trade route. The alternative routes increase shipping costs, but manufacturers struggle to raise prices due to intense competition.