Asian Granito to up capacity of its plant

Gujarat-based Asian Granito will expand its capacity at its existing plant and is also setting up a new plant in the state. The Rs 115-crore company, which is mainly into vitrified tiles, has a capacity of 14,000 square metres per day.

"We have started the modernisation of the vitrified tiles manufacturing plant and new capacity will become operational by April 2007," said Hasmukh Patel, managing director, Asian Granito.

The company is setting up a ceramic wall tiles manufacturing plant with a capacity of 9,300 sq metres per day. It will become operational by September 2007. "So far we have been in the floor tiles and it will be our first venture into the wall tiles segment," Patel added.

For modernisation of the existing plant, the company is importing machinery from Italy.

"With this we expect to cut our manpower by three-fourth," he added. The overall investment in the project is around Rs 80 crore of which a major chunk will go to the new plant.

The company is targeting the domestic market but has kept its option open for exports as well.

"In the domestic market, western region comprising Gujarat, Maharashtra and Goa will be our main focus. As far as the export is concerned, we do have ready-made neighbouring markets," said Patel. The western region constitutes 45 per cent of the total tile market followed by north and south.

With the new capacity addition and greenfield project, the company expects its turnover to reach Rs 160 crore in the current fiscal. "Once the new plants become operational we are targeting to reach a turnover of Rs 250-300 crore in the next 2-3 years," he said.