H&R Johnson to set up unit in Rajasthan

Tile manufacturing company H&R Johnson (India) is planning to set up a new manufacturing facility in Rajasthan. The unit, which is expected to become operational by 2006, will be the company's first manufacturing facility in the northern region.

At present the company has six plants located in the south and the west.

The proposed greenfield unit in the north will have an investment worth over Rs 110 crore. H&R Johnson selected the state taking into account the proximity to the National Capital Region, availability of key raw materials and proposed natural gas pipeline in the state. The work on the unit will begin from June.

Vijay Aggarwal, managing director, H&R Johnson (India), said, "The Rajasthan facility will primarily service the requirements of the northern market. It will help us further reduce response time to the market. The unit is part of our strategic focus in the north."

This facility is being set up with an initial capacity of approximately 25,000 sq mt per day and will contribute over Rs 150 crore annually.

H&R Johnson is targeting a Rs 1,000 crore turnover by March 2006 and a market share of 30 per cent. Other key players in the sector are still in the Rs 250-300 crore bracket.

The company has also boosted its distribution network by over 25 per cent. Besides its vast dealer network comprising of 1,000 dealers and 10,000 sub-dealers, the company has enhanced its enormous field force. A key thrust of this distribution channel expansion is the rural market.

The company clocked sales turnover worth Rs 541 crore during the last fiscal "" a 22 per cent growth over the previous year's Rs 442 crore.