Kolkata, May 2 () Sanitaryware major CERA Sanitaryware has plans to set up a new manufacturing facility in Rajasthan.
"We are planning for a new tiles plant at Rajasthan and are in the process of getting the land. We expect construction to begin from December," Cera executive director Atul Sanghvi said here today launching a style studio here.
It is, however, still not decided whether Cera will develop the plant alone or have a JV partner like it has done in its newly-installed tile plant at Nellore in Andhra Pradesh.
"We have not yet decided whether a partner will be roped in," Sanghvi said.
Cera has set up a 10,000 sq m tiles manufacturing facility in 51:49 JV with Andhra Pradesh-based Anjani Tiles.
Sanghvi said the investment in the new plant could be about Rs 75 crore to Rs 80 crore including land cost.
Cera, a brand for the mass and mid-segment, is also vying for a sizeable presence in luxury segment that contributes 10-15 per cent to the industry and has tied up with a Italian luxury sanitaryware company Isvea.
Sanghvi said the company was currently focusing on the bottomline instead of topline growth as the market remains subdued though growing at 15 per cent.
"Few years ago the industry was expanding at a CAGR of 30 per cent but it has shrunk to 15 per cent. We are focusing at improving margins and bottomline. Things could change after monsoons," he said. BSM KK MR
(As published in Times of India 2nd May 2016)