Company is expanding its production capacity at Kadi in North Gujarat.
Cera Sanitaryware Ltd, the third largest sanitaryware maker in India, is in talks with a number of companies to acquire a brand and a factory in Italy. Cera's board of directors is likely to take a decision on this by next year. Apart from this, the company is also in the process of expanding its manufacturing facility at Kadi in North Gujarat involving an investment of Rs 100 crore over the next couple of years.
"With a view to catering to high end sanitaryware segment in India, we are looking at acquisition in Italy. This would be the first acquisition by Cera outside India," said Vidush Somany, executive director, Cera Sanitaryware Ltd. However, he did not disclose the size of the acquisition and the names of the Italian companies that Cera is in dialogue with.
According to Somany, the company is looking at acquiring either a brand or a factory or brand and factory both. Apart from this, the company may also buy out a research and development (R&D) studio. Cera has been scouting for a suitable company for almost a year.
Cera, which currently enjoys 21-22 per cent share in Rs 1500 to Rs 1800 crore organised sanitaryware market in India, is increasing the production capacity of its sanitaryware division at Kadi facility from current 2 million pieces to 2.7 million pieces. The expansion is slated to be completed by April 2012.
In addition to this, the taps manufacturing division will see its capacity going up almost three times to 2 million pieces from current 0.7 million pieces over the period of next 12 to 18 months.
"For sanitaryware division around Rs 60 crore will be infused, while for taps capacity increased Rs 40 crore would be pumped in," said Somany adding that the company is eyeing to capture 25 per cent market share by next year.
The company is also aggressively entering into luxury segment of shower enclosures, shower trays and equipped panels and cubicles. It has also tied-up with Italian company Novellini for this.
Cera has also launched one-of-a-kind "Cera Bath Studios" in Ahmedabad, Bangalore, Chandigarh, Kolkata, Cochin, Hyderabad and Mumbai. At present the company is the third largest player in Indian sanitaryware market with 21-22 per cent market share, while Hindustan Sanitaryware and Industries Ltd (HSIL) is on top with 41 per cent followed by Global giant Roca Bathroom Products Pvt Ltd (26 per cent).
