Cera to source parts from overseas

Cera Sanitaryware Ltd (CSL) will source its product components and accessories from China, Korea and Europe.

"Insourcing from China, Korea and Europe makes our products cheaper in the international market by over 50 per cent. We can compete in the international market in terms of pricing because of the low import duty. At present, we are sourcing 20 per cent of the product components and accessories from these countries," said Vikram Somany, chairman and managing director of Cera.

CSL has a modern plant at Kadi in Mehsana district of Gujarat which uses natural gas for its kilns and has a production capacity of 15,000 tonnes per annum.

The company uses full capacity of its plant and plans to focus on insourcing its product components and accessories.

The company at present exports its products to Europe, West Asian countries, Bangladesh, South Africa, Greece, Canada and South Africa.

The company is planning to make its products in accordance with the Australian standards to tap its market in Australia.

Exports contribute 15 per cent of the company's turnover. CSL has posted a growth of 73 per cent in its profit before tax for the third quarter of the current financial year ended on December 31,2003, and the turnover of the company has grown to over 19 per cent in the third quarter of the current financial year.

The company aims to achieve a growth of 25 per cent at the end of the current financial year.

Ruling out any possible foreign collaboration, Somany said, "CSL is not planning to have any foreign tie-ups for equity but has foreign consultants for technology product designs and meeting international standards."

The company has recently launched two new models aimed at the premium segment.

The company is planning to launch three more products in the designer range by March 2004.

It also plans to launch shower cubicles, shower panels, sensor taps and strain-free sanitaryware.

Cera has launched sanitarywares in an array of 30 colours. CSL took help from ceramic technology suppliers on a consultancy basis from countries in Europe to process its products.

CSL has bagged large export orders from the US and is capable of making products conforming to European, Canadian, Indian and Australian norms, the company said.

On the quality front, Cera began with manufacturing products conforming to Indian standards from the beginning of operations, the company said.

Cera is the first Indian sanitaryware company to obtain ISO 9002 certification, the company said.

It is also conferred with ISO 14001 for its eco-friendly plant operations.

CSL's plant in Kadi in Gujarat has piped natural gas connectivity.