H&R Johnson to diversify into sanitaryware business

The Rs 500 crore tile company, H&R Johnson, is diversifying into sanitaryware business. The company will launch sanitaryware products sourced from the manufacturers in India and abroad. It will market these products under its joint-free brand, Porselano.

"Our diversification into the sanitaryware business is part of our larger plan to provide our customers with a one-stop solution for all their bathroom and kitchen requirements. This opportunity opened new business possibilities for us. The Indian sanitaryware market is growing at six per cent annually. However, we are targeting an annual growth of 15-20 per cent for the next five years," said Vijay Aggarwal, managing director, H&R Johnson.

"We are building a separate distribution network, which will primarily focus on sanitaryware business. While sales focus will be both on retail as well as institution in Class A and B towns, efforts will be made to increase sales in Class C and D towns too," said Aggarwal. The company is targeting a divisional turnover of Rs 25 crore from its sanitaryware business in the first year of operations.

H and R Johnson clocked a sales turnover of Rs 542 crore during FY05, a 22 per cent growth over previous year's sales turnover of Rs 442 crore. The company offers a range of wall and floor tile products across various categories.

The company's flagship brand is Johnson tiles that offers a range of ceramic floor and wall tiles.