As part of its strategic expansion plans, leading tile manufacturer and complete bathroom solutions provider H&R Johnson (India) Limited, has decided to expand the production capacity at its Rajkot plant in Gujarat.
The plant, under a joint venture called Antique Granito Pvt. Ltd., has a current capacity of 22,000 sq. metres per day which the company intends to scale up to 30,000 sq. metres per day at an investment of Rs 50 crore.
Apparently, the expanion will raise the company's total production per day from the unit by over 36 per cent. According to Vijay Aggarwal, managing director of H & R Johnson, the capacity of the Rajkot plant will be increased by adding one more kiln to the existing three.
Following the expansion, the company intends to register a revenue of Rs 1,250 crore by March 2009.
Expected to be commissioned by December 2008, the expansion is the result of increase in demand for H & R Johnson’s vitrified tiles under the brand Marbonite, say company sources.
Commenting on the expansion, Aggarwal said, "This capacity expansion in our Rajkot Vitrified JV plant is one of the few steps towards the company’s target to touch Rs. 3,000 crore within next five years. The market demand for Marbonite has been growing at a healthy rate over the past few years and we expect the trend to continue in the future also. We are scaling-up the production of Marbonite at various locations to cater to the growing demand."
H. & R. Johnson (India) Limited had signed a 50:50 joint venture with Antique Granito Limited in May, 2005. Ever since the JV, the plant has been continuously expanding the capacity to cater to the growing demand.
The overall investment in setting up the capacity has been over Rs. 200 crore so far. During the year-ending March 31, 2009, H R Johnson pegged a turnover of Rs 1,030 crore, thereby making it the first company to cross Rs 1,000 crore benchmark in the tile industry.
Apart from Marbonite, the company also owns the Endura brand which offers specialised industrial and pavement tiles.
The company also offers complete bathroom solutions with product range including sanitaryware, bathroom fittings, shower enclosures, sinks and shower panels, alongwith industrial tiles and laminate flooring.
