H&R Johnson eyes north, ramps up distribution

Tile manufacturer H&R Johnson is planning to ramp up its distribution network in north India by over 25 per cent in the next three months. The plan aims at improving its penetration in Jammu & Kashmir, Himachal Pradesh as well as interior parts of Punjab and Haryana.

An investment of over Rs five crore will be made towards expanding the network in the north as well as setting up operational and marketing base in new territories. The company currently has over 250 dealers and 3,000 retailers in the north region.

"The need to increase our distribution network in the north region is the direct result of enormous jump in sales volume in the region during the first half of FY06. We crossed the one crore sq feet sales volume in the north on September 30, 2005. This landmark has pegged our first half sales growth at around 86 per cent in the region. The company recorded a phenomenal 41 per cent growth in sales across the country in the same period compared with sales in the corresponding period last year," said Vijay Aggarwal, managing director, H&R Johnson.

The company is also spreading its marketing operations in the B and C class towns as well as villages to reach out to rural customers.

The company plans to extend the House of Johnson display centres in these target markets, aiming to increase brand visibility and mass product awareness for its 5 brands - Johnson, Marbonite, Porselano, Endura and Milano.

The company is also setting up a manufacturing unit in Rajasthan. It will invest over Rs 110 crore for setting up the greenfield unit. The unit is expected to have a production capacity of 25,000 sq metre per day. The planning for the north unit has already been in progress from June 2005. The plant is expected to be operational by late 2006, said Aggarwal.

The company is targeting Rs 1,050 crore turnover by March 2007 with an overall market share of 30 per cent across the country.