Cera Sanitaryware Limited (CSL), the third largest sanitary ware company in India, has plans to acquire some European sanitaryware brands. The company will invest about Rs 100 crore for expansion in India and abroad.
“We are planning to acquire some European sanitary brands that are facing a shutdown or tough times due to recession. The company is in talks with leading European faucets and sanitaryware players in order to acquiring two super-premium brands,” said Vikram Somany, chairman and managing director, CSL.
“We have planned an invest of Rs 100 crore for expansion in India as well as abroad. Cera will invest about Rs 20-30 crore for brand acquisition and Rs 35-40 crore to expand capacity within a period of one and a half year.”
The company will increase its production capacity from 21 lakh pieces to 27 lakh pieces per year. CSL will also start production of faucets at Kadi plant near Ahmedabad.
Cera intends to open 2-3 new Bath Studios in India. It currently has Bath Studios in Ahmedabad, Bangalore, Chandigarh, Kolkata, Cochin and Hyderabad and Mumbai.
Elaborating on the expectations for the current year, Somany added, “The effect of expansion that we took up last year will be visible in the current year. The addition in product portfolio and the inclusion of geysers and bath tubs with LCD TVs will further positively impact the topline and profits of our company.” he added.
As per the unaudited annual results of the company for the year 2009-2010. The sales, for the year, have gone up to Rs 191.39 crores from previous financial year of Rs 159.52 crores showing a growth of 20 percent. Company is targeting to achieve turn over of Rs 275 crore for the FY 2010-11.
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The Profit after Tax, has increased to Rs.19.53 crores, witnessing a marked increase of 49 percent over the previous financial year.
The earning per share has gone up to Rs 31.37 in FY 2009-2010, as compared to Rs 21.15 of the proceeding year in 2008-2009.
The sales of the 4th Quarter of FY 2009-10 has shown a rise of Rs.12.59 crores showing a growth of 27 percent compared to the same of preceding period.