Hindustan Sanitaryware & Industries Ltd (HSIL) plans to invest Rs 500 crore in the next seven years to set up three new plants in Gujarat.
The company that has signed a memorandum of understanding (MoU) signed with the state government will set up a plant each for producing sanitaryware, tiles and bathroom fittings.
"We would be investing Rs 500 crore in three phases to set up three manufacturing facilities in Jhagadia in the next seven years," HSIL President R B Kabra told PTI.
In the first phase, the company plans to invest Rs 125 crore to set up a sanitaryware facility that will have an initial annual capacity of 1.2 million pieces.
It will be expanded to 2 million pieces in the second phase at an investment of Rs 150-175 crore, along with setting up a tiles manufacturing unit.
"In the third and final phase, we plan to spend around Rs 200 crore for the expansion of tiles plant and to set up a faucet (bathroom fittings) facility," Kabra said.
The tiles facility would have an initial capacity to produce 10,000 metres of tiles per day which will later be expanded to 20,000 metres per day, Kabra added.
The company's faucet plant would have an initial installed capacity of 3 million pieces, Kabra said.
The state government has already allotted 55 acres of land to the company in Jhagadia for the purpose.
"We have got the land from the state government and have also deposited the initial amount for the land," Kabra added.
The company has already earmarked around Rs 525 crore for capacity expansion in the next three years for its building material and container glass divisions.
It aims to touch 5 million pieces of building material a year by 2013-end from the current 2.8 million pieces annually after the capacity expansions.
HSIL posted a net profit of Rs 87.35 crore for the year ended March 31, 2011. Its net sales for the year crossed Rs 1,000 crore mark and stood at Rs 1,035.33 crore.