Tile manufacturer Kajaria Ceramics Ltd today said its board has approved acquisition of 51% stake in Andhra-Pradesh based Vennar Ceramics for up to Rs 13.65 crore.
Kajaria Ceramics, in its board meeting held on March 31, 2012, approved the acquisition of 51% stake in Vennar Ceramics by way of subscribing to fresh equity share capital of the company for a sum not exceeding Rs 13.65 crore, Kajaria Ceramics said in a statement.
Vennar is in advanced stages of putting up a plant to produce 2.30 million square meters per annum of high end ceramic wall tiles, the addition of which would take the total annual capacity of Kajaria Ceramics to 38.30 million square meters, it added.
Commenting on the development Kajaria Ceramics Chairman Ashok Kajaria said: "This will help Kajaria to cater to the southern markets from this new plant enabling the company to reduce the transit time for delivery of goods and savings in transportation costs."
Shares of Kajaria Ceramics were trading at Rs 168.95 apiece, down 0.76% from its previous close on BSE.