Analysis: India
year 2013, it has grown to Rs. 300 million in financial year 2016. The company has also undertaken debottlenecking in its two sanitary ware plants in Telanagana and Haryana with a planned outlay of INR 500 million. This will increase the sanitary ware capacity by 0.4 million pieces. Post completion of debottlenecking, the total installed capacity of the company will increase to 4.2 million pieces.
Joint ventures
In order to cater to South Indian ceramic tile and sanitary ware market and minimise the logistic costs, organised sector players have made various arrangements with smaller players in Southern region. While, some of them have entered into joint venture with the smaller players in the region, others have acquired these smaller players.
Cera Sanitary ware & Anjani Tiles
In 2015, leading sanitary ware producer CERA Sanitary ware Ltd entered into a joint-venture agreement with an Andhra Pradeshbased Anjani Tiles Ltd to set up a ceramic vitrified tiles facility in Nellore, Andhra Pradesh. CERA holds 51 per cent stake in the project, which had a total outlay around Rs 68 crore. The plant has an initial capacity of 10,000 square meters per day of tile manufacturing with further possibility for expansion. "South is a major market for us. And with new capital of Andhra Pradesh, Amaravathi being announced we see greater scope with increased construction activity there. Also, Andhra Pradesh has announced subsidies to encourage businesses to grow," according to Vikram Somani, of CERA Sanitary ware Ltd. "Of the total production at new facility, about 50 per cent is consumed in Andhra Pradesh, driven by boost from new city Amaravathi. The plant is close to Ennore and Krishnapatnam ports, hence exports too would be conducive in future," according to K V V Raju, chairman of Anjani Tiles Ltd.
Kajaria Ceramics & Vennar Ceramics
Kajaria Ceramics acquired 51% stake in Vennar Ceramics Ltd, based in Vijayawada, Andhra Pradesh in April 2012, with an annual capacity of 2.30 million square meters of high end ceramic wall tiles. Production has commenced in the July, 2012. Vennar started operating at full capacity in financial year 2015.
Kajaria Ceramics & Florea Ceramics
Kajaria Ceramics has acquired a 51% stake in Floera Ceramics Pvt. Ltd, which is putting up a manufacturing facility of polished vitrified tiles with a capacity of 5.70 million square meters per annum in the state of Andhra Pradesh. The company has already acquired the land for it and plant is expected to be commissioned by April 2017.
H & R Johnson & Sentini Ceramics
Andhra Pradesh Company- RAK Ceramics Location- Smalkot Products- Ceramic Tiles and Sanitary ware Markets- Primarily domestic market. Others- The only multinational company in ceramic tile production in India, RAK Ceramics operates a ceramic tile and sanitary ware manufacturing plant in the state of Andhra Pradesh at Smalkot. RAK Ceramics India has an installed capacity of 30,000 square meters of wall and floor tiles and 3500 pieces of sanitary ware from its state of the art plant located in Andhra Pradesh. UAE based RAK Ceramics is one of the most technologically advanced ceramic producers in the country. The company has been contemplating to start a Greenfield ceramic manufacturing plant in the country for past three years. But, economic situation and slowdown in Indian construction market has resulted in company delaying its new plant in India.
Telengana Company- Hindustan sanitary ware Industry Limited ( HSIL) Location- Bibi Nagar Products- Ceramic Sanitary ware Markets- Domestic and export markets. Others- Hindustan Sanitary ware Industry Limited or HSIL as it is popularly called is largest ceramic sanitary ware producer in the country. The company has two sanitary ware manufacturing plant in the country- one in Bibinagar in Telengana with an installed capacity of 2.0 million pieces per annum and other at Bhadurgarh in state of Haryana with an installed capacity of 1.8 million pieces of sanitary ware per annum. In addition to sanitary ware, the company also produces complementary products such as faucets at its two plants located at Alwar and Himachal Pradesh.
Tamil Nadu Company- Roca Location- Perundurai Products- Ceramic sanitary ware Markets- Domestic and export markets. Others- Spanish sanitary ware producer Roca was the first multinational sanitary ware producer to enter the Indian market by acquiring a stake in an existing domestic sanitary ware producer. The company which has two sanitary ware manufacturing plant in the country enjoys a significant share in South Indian market by virtue of its presence in the state of Tamil Nadu. In recent years, the company has made several acquisitions in bathroom industry ( Faucets and pipes) to consolidate its position in the bathroom industry in the country.
Karnataka Company- H & R Johnson Location- Kunigal Products- Ceramic Tiles Markets- Domestic and export markets. Others- Largest ceramic tile player in India by installed capacity, H&R Johnson along with its joint ventures and subsidiaries have a capacity of over 58 million square meters per annum spread across 10 manufacturing plants across the country. Company’s manufacturing facilities are located in Maharashtra, Gujarat, Madhya Pradesh, Karnataka, Pondicherry and Andhra Pradesh. H&R Johnson also has its own plants for bathroom CP fitting products at Himachal Pradesh and state of Jammu & Kashmir. The company produces ceramic tiles in 20 different sizes, 9 different levels of thickness and 15 surface finishes to suite functional and aesthetics requirement. H&R Johnson provides Johnson tiles under three verticals – Johnson Marbonite, Johnson Porselano and Johnson Endura.
Sentini Cermica Private Ltd is engaged in the manufacturing of ceramic floor tiles at Chigurukota in Krishna district of Andhra Pradesh. This unit is an equal ( 50 : 50 ) joint venture between the Sentini group and H & R Johnson. The company was incorporated in 2002 and the first phase of the plant was commissioned on 2004. Sentini manufactures ceramic floor tiles under the brand name of “ Johnson”. Currently the company has installed capacity of 9.125 million square meters of tiles per annum.
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asian ceramics
AC 16-10
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