Buoyed by robust demand in the domestic market, Cera Sanitaryware Ltd is planning to infuse fresh capital of Rs 100 crore to expand its manufacturing capacity.
The company is expecting a 30 per cent growth this financial year, as compared to 25 per cent growth in the last financial year.
Speaking to Business Standard on the sidelines of the launch of a new bath gallery, Cera Sanitaryware Ltd Executive Director Vidush Somany said, “In order to meet the robust demand in domestic market, we are going to increase our manufacturing capacity. We have plans to increase our sanitaryware capacity from 2 million units annually to 2.7 million units annually with a capital infusion of Rs 60 crore.”
“Recently, we have forayed into faucets that is taps from sanitary ware. We have commissioned our faucetsware plant three months back and further has plans to increase the capacity. At present, the capacity of the unit is 800,000 units annually. It has plans to increase its capacity to two million units with a capital infusion of Rs 40 crore. Both the expansion would be completed by the end of next year,” he added.
“Since we have commissioned faucetware plant recently, We expect the plant would contribute Rs 45 crore in the turnover in the current financial year.”
With the commissioning of this plant, the company expects growth by next year. Also, last year, it had a turnover of Rs 243 crore and this year it is expecting a 30 per cent growth over the last year. Besides catering to domestic market, the company also export to Srilanka, European Union, Canada and Gulf countries.
Apart from capacity expansion, it is also increasing outsource division substantially which consists of showers, Jacuzzis and plastic fittings. Also, apart from manufacturing and outsourcing from India , the company is also introducing high value products imported from South-East Asia, China and Taiwan.
