H&R plans to invest Rs 160 crore

Ceramic tile major H&R Johnson is investing Rs 160 crore to increase its capacity by 50 per cent besides foraying into bathroom accessories.

Vijay Aggarwal, managing director, said the fresh capacity will enable the company to enter the lower price segment in ceramic tiles.

The capital expenditure will be met mainly by internal accrual, he said adding the new capacities should be ready in three months.

So far H&R Johnson has operated in the middle and premium category. In India, though, the larger market is in below Rs 25 per square foot category.

The industry is estimated to be worth Rs 2,000 crore of sales in the organised sector and another Rs 500 crore in the unorganised sector. Of the total, Rs 1,500 crore is in lower price segment.

The new plant at Andhra Pradesh, where the investment is Rs 70 crore, will produce 12,000 square foot tiles a day.

Moreover, the company is increasing capacity from 18,000 square metre a day to 27,000 square metre a day of the Pen plant in Maharastra to manufacture bigger size tiles.