With a view to tap high end sanitaryware market, Cera Sanitaryware Ltd, India's third largest sanitaryware manufacturing company, plans to acquire a company or a brand in Europe. Apart from this, the company intends to infuse Rs 60 crore for capacity expansion.
"Cera is pursuing overseas acquisition to expand its footprint and capture a larger global customer base. The company is in dialogue with leading European faucets and sanitaryware brand with intension of acquiring two super premium brands. There is major growth on cards with Cera becoming a complete bathroom solutions company," said Vidush Somany, executive director, Cera at a press conference here in Ahmedabad.
However, the company officials declined to divulge further details regarding acquisition saying that the board of the company has recently decided to make acquisition and the company is currently exploring various opportunities. "The company wants to tap high end sanitaryware market," added Vikram Somany, chairman, Cera.
The company, which enjoys 20 per cent share of Rs 1000 crore organised sanitaryware market in India, has already taken up substantial expansion in last four year involving an investment of Rs 53 crore. It is now in the process of setting up a green field plant to make faucets, popularly known as CP fittings, with a production capacity of 2500 pieces per day at Kadi, where it already has its existing facility for sanitarywares. The new unit for faucets is scheduled to start operations from September this year.
"We have further decided to double the production of new facility for faucets. In addition to this, the existing unit for sanitaryware will also see capacity addition of 35 per cent to 2.7 million pieces from current 2 million pieces. We have earmarked capital outlay of Rs 60 crore for the capacity expansion," Vidush Somany informed.
Cera today announced a bonus issue of shares in the ratio of one share for every share held. Also, the company declared dividend of 50 per cent on the back of encouraging financial results. The net sales of the company have risen by 20 per cent to Rs 191.36 crore for the fiscal 2009-10 as compared to Rs 159.52 crore in 2008-09.
"The significants attainments to shift its gear to higher growth so that we can achieve a sales income of Rs 500 crore in the next three years," he added.
