Cera looks east for tiles

Gujarat-based Cera Sanitaryware Ltd (CSL) will be venturing into vitrified tiles business by second quarter.

The only listed company in sanitaryware in the country will soon be importing vitrified tiles from China in the coming months.

CSL, which is looking to gradually enter the home solutions business in the near future, has begun exploring the possibilities and also talks with some Chinese companies.

According to Vidush Somany, executive director of CSL, the company will be looking to generate an initial turnover of Rs 20-25 crore from the tiles business.

One of the largest players in sanitaryware, CSL will be gradually moving into total bathroom solutions and later, into home solutions too, said Somany.

"Tiles was the only business that we were not into in this segment. But soon we will be importing vitrified tiles from China," said Somany, adding that the tiles market in India is presently of Rs 2,000 crore.

Somany, however, refused to divulge further details of the import.

CSL has a share of 20 per cent in the Rs 700 crore organised sanitaryware market. The company is also into the expansion of its existing sanitaryware facility in Kadi.

CSL will be investing around Rs 30 crore to expand its capacity from 1.2 million pieces per annum (15,000 MTPA) to 2 million (24,000 MTPA) by the end of fiscal 2007-08.

Post expansion, Somany hopes to make a turnover of Rs 180 crore for the present fiscal and Rs 350 crore by 2010. The company is also looking to increase its exports from 4-5 per cent of its sales to 15-20 per cent after expansion, added Somany.

CSL will be mostly exporting its sanitaryware products through OEM tie-ups to Europe, Australia and South Africa.