Kutch accounts for 62 percent of the Kaolin reserves in Gujarat. The reserves are mostly concentrated in Rapar and Bhachau Talukas. In addition to this, recently, a massive 200 million metric tonnes of Kaolin reserves have been discovered in Rapar Taluka.

Kaolin reserves in Kutch are of national importance. Kerala (29%), Rajasthan (21%), Gujarat (14%) and Andhra Pradesh are the major producers of Kaolin in India. Kutch is the largest (73%) producer of Kaolin in the state followed by Mehsana and Sabarkantha.

Ceramic grade (Al4 Si4 O10 (OH) 8) is usually found in Kutch.

Production of kaolin has experienced significant fluctuations during 1995-2002, but has maintained an overall positive growth trend. Production has been increased from 50 thousand tonnes in 1995 to 122 thousand tonnes in 2002 and further increased to 3467 thousand tonnes in a year 2013-14.

China Clay is largely consumed in the ceramic industry for tiles, sanitary ware, pottery ware and crockery ware. In India, the per capita ceramic tile consumption is 0.09 sq. m. per annum as compared to 1.2 sq. m. per annum in China and 5 to 6 sq. m. per annum in European countries. But its demand is expected to increase with the increase in household consumption. Indian ceramic products are also exported to East and West Asian countries, Europe, Canada and East and West Asia. The total export of ceramic products from the country was about INR 2710 million during 2001-02.

Kutch has the largest reserves of kaolin in the state. During the year 1991 and 2004, 16 projects with an investment of INR 16220 millions have been filed for ceramic industry in Kutch district. This investment is 45 percent of the total investment in ceramic industry in Gujarat. With recent exploration of 200 million metric tonnes of kaolin in Rapar Taluka, the prospects of setting up these industries have enlightened in the region. After the earthquake, Ajanta Manufacturing limited, has set up a vitrified tiles plant with an investment of INR 2108 millions.