H&R Johnson buys 50% in 2 tile firms

Tile major H&R Johnson (India) Ltd acquired a 50 per cent stake in two Gujarat-based tile manufacturing companies "" Antique Granito (a vitrified tile manufacturer) and Specific Ceramics (a ceramic tile manufacturer) "" on Thursday.

H&R Johnson today inked a marketing and joint venture agreement with both these companies. Antique Granito is based in Morbi, while Specific Ceramics is an Ahmedabad-based company.

This is the first time a multinational is investing in Morbi. This will provide a boost for Morbi-based manufacturers who have been reeling under pressure on margin owing to escalating input costs.

The agreement with Antique Granito was signed between Vijay Aggarwal, managing director, H&R Johnson (India), and Chunnilal Bhai Kundariya, managing director of Antique Granito.

The deal with Specific Ceramics was penned by Vijay Aggarwal for H&R Johnson (India) and Suresh Patel, managing director of Specific Ceramics.

Aggarwal said, "Our team of technical experts have been evaluating various options in Gujarat and zeroed in on Antique Granito and Specific Ceramics to partner with as both these companies have the capabilities to meet the stringent international standards in tile manufacturing."

The manufacturing units of both these companies have state-of-the-art machinery imported from abroad as well talented man power resource, Aggarwal added.

H&R Johnson will now launch a modernisation drive to scale up and upgrade existing technology and machinery at the manufacturing units of both the Gujarat-based companies.

Aggarwal has confirmed that H&R Johnson will be installing latest machinery for creating special effects, a high-resolution design lab and other technical inputs at these plants.

H&R Johnson will also be supplying both the plants with all the key raw materials required in the manufacturer of international standard vitrified and ceramic tiles.

Moreover, it is planning to train the plants' staff at various Johnson Ceramics International facilities across the world to upgrade their technical knowhow and bring in the international perceptive to their working and these two acquisitions will further consolidate H&R Johnson capacity and production leadership in the Indian tile industry.