Kajaria plans Rs 123 crore expansion

Tile manufacturer Kajaria Ceramics Ltd has chalked out an expansion plan entailing an investment of Rs 123 crore.

The plan is to raise its output from 18 million square metre per annum (msqa) to 40 million square metre per annum (msqa) by March 2009.

The project, which will help increase the company's turnover to Rs 1,000 crore by 2010, is to be completed in a phased manner.

To fund the expansion, the company has lined up Rs 80 crore debt and Rs 43 crore will be raised through internal accruals. The company has already got approval to issue GDR or FCCBs of up to $30 million.

At present, the company has one plant each at at Sikandarabad (Uttar Pradesh) and Bhiwandi (Rajasthan).

The company plans to increase the capacity of the Bhiwandi plant by 8.4 msqa. The present capacity of the unit is 8.3 msqa. The capacity at the Sikandarabad plant is 9.7 msqa.

The expansion at the Bhiwandi plant is expected to be completed by September 2006. The expansion would help the company increase its presence in the low-end market.

Kajaria has opened its office in Sharjah which will function as a marketing arm for the whole of the Gulf region.