Somany Ceramics to pump Rs 100cr to hike output capacity

Written By Unknown on Kamis, 06 Desember 2012 | 21.03

Tiles maker Somany Ceramics said it will invest over Rs 100 crore in next three years for enhancing its production capacities by 10 million square metres annually. The company is looking to form a new joint venture (JV) within the next six months that will set up a new facility with an installed capacity of 2.5-3 million square metres annually in Gujarat.

"We are expanding our capacities. In the next three years, we will add ten million square meters of annual capacities through greenfield and brownfield options," Somany Ceramics Joint Managing Director Abhishek Somany told PTI at the Building Material Exhibition. The company currently has a total production capacity of 35 million square mitre per annum at its four plants, out of which two are joint venture units.

"We will be investing around Rs 30 crore every year and in the next three years it will be over Rs 100 crore. This includes expanding our existing capacities as well as setting up new plants," Somany said. He said the company is in discussions with a few players to form a new joint venture within the next six months. "In the next two quarters, we will announce something. The JV will be in Gujarat and we will set up a new plant there that will require an investment of Rs 50 crore by the partners," Somany said, adding the annual capacity of the plant will be 2.5-3 million square metres per annum.

Somany Ceramics will have a 26 per cent stake in the proposed JV, he added. When asked about sales turnover, he said: "In last fiscal we had a revenues of Rs 950 crore and this year we are expecting a 20 per cent jump. We hope to maintain this growth rate for the next three years."



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