Tile manufacturer H&R Johnson (India) Limited has signed a 50:50 joint venture (JV) agreement with Silica Ceramica Private Limited of Andhra Pradesh.
According to the agreement, Silica Ceramica will be manufacturing vitrified tiles using HRJ’s technology and quality standards while HRJ will market the finished products through its distribution network.
The investment towards this project is Rs 50 crore. The plant, located at Eluru, has a manufacturing capacity of 7,500 square metre per day and the commercial production is expected to commence by January 2009.
“This joint venture is a natural progression of our ambitious goal to touch Rs 3,000 crore sales turnover within a span of five years. It will also enable us to increase market penetration, resulting in significant benefits to both the companies,” HRJ managing director, Vijay Aggarwal, stated in a press release.
Aggarwal said HRJ had undertaken a few capacity expansions and this was one of them. Last year, the company's Marbonite brand vitrified tiles contributed to sales worth Rs 425 crore and HRJ intends to augment it to Rs 550 crore by the end of this financial year.
