ANALYSIS OF

PAKISTAN
INDUSTRIES

MARBLE AND GRANITE

INDUSTRY

Prepared by:
SEHRISH KAPADIA
AYESHA JAWAID
BEENISH MUDABIR
ALKARIM VAYANI
 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.
MARBLE IMAGES
 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
YEAR registered
MARBLE 000 GRANITEan
000 annual
TONS
growth rate of 13.3% since TONS
late 70’s.
1976 13600 3400
WORLD’S TOTAL
1986
PRODUCTION
13130
SINCE 1970’s
7385
1996 26450 17625
1997 27650 19350
2002 50 MILLION 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.
 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
MAJOR EXPORTERS
VALUE 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 MAJOR
54.04 IMPORTERS
52.42 51.37 7.3
VALUE IN $ MILLION
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

 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

1998-99 412000
1999-2000 521000
2000-01 542000
2001-02 685000
2002-03 1142000
2003-04 3.3 MILLION
2004-05 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.
 REGIONAL CONTRIBUTION
(cont:)
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.
 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. $16.4 million).
 EXPORT
Major countries include Bangladesh,
China, Hong Kong, Saudi Arabia, USA,
Italy, etc.
Value in
COUNTRIES 2001-02 000$
2000-01

Bangladesh 967 1000

China 501 415
Hong Kong 386 93
Italy 670 593
Saudi Arabia 196 235
USA 1712 2384
 IMPORT
Pakistan only import the machine for
the process of mining, polishing and
cutting etc.
1998 1999 2000 2001 Values
2002in
US $
Total 2638 2845 3326 3093 2944
% 100 100 100 100 100
Italian 438 452.4 6601 606.7 479.5
Share

% 16.6 15.9 19.8 19.6 16.3

 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 Lab
 PROBLEMS
1. 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.
 SWOT Analysis:
STRENGTHS WEAKNESES:
history & experience
Diagnostic Study on
Marble Processing Cluster,
Rawalpindi/Islamabad
SMEDA_UNIDO Cluster
Development Program 20
Located in and around
capital city of Pakistan
(relationship with
government and foreign
consulates)
In spite of being the
largest cluster of
Rawalpindi/Islamabad
region industry lacks
stimulus towards
value addition, and
investment in high-
end machinery and
Human Resource is
minimal.
disadvantaged in case
of raw material
availability
transportation costs
Cont…
Islamabad has lots of Comparatively
planned construction disadvantaged in case
area so local market is of investment portfolio
available. and costing structure if
Have 2 chambers of want to import squared
commerce in the block from abroad.
vicinity. There is a 100%
The head office of demand-supply gap of
APMIA is located in the skilled labor in the
cluster that gives industry
national leadership to There is no waste
the cluster. management policy or
strategy or feasible
utilization of marble
slurry.
SWOT Analysis:

OPPORTUNITIES: THREATS:

no import tariffs
Entrepreneurs may not
Pakistan has large be willing to invest in
reserves of several
varieties of Marble. labor presently working
Raw material with them
availability for cluster fails to finalize
handicraft the contract because of
manufacturing. time delays due to
Almost 10 model irregular shape and
quarry projects are
planned which will irregular supply of the
ensure square block marble stone.
supplies to the cluster.
Cont…
Mines from Mianwali Investment on high
may start operating quality machinery in
final processes is not
which is near to this feasible due to low
cluster. quality mining and
Policy climate in quarrying.
NWFP and FATA is China has already
getting better which destroyed the granite
processing opportunity
will also ensure with its low cost bulk
better supply of raw selling.
material
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)..
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.
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 to 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.