Nitco Tiles to raise capacity

Nitco Tiles Ltd is expanding its tiles production capacity from 2.5 lakh square feet per day to 4 lakh square feet per day in 2006-07.

Similarly, the company is also expanding its marble producing capacity from 3 lakh square feet per month to 5 lakh square feet per month in 2006-07. The Rs 30 crore expansion would start commercial production in 2006.

Nitco Tiles enjoys with 10 per cent market share in overall tiles market in the country. Apart from the proposed expansion, the company is planning to consolidate its activities within its existing location at Silvassa for which it has already acquired 20 acres and talks are on to acquire 10 acres.

Sacmi Imola of Italy would by supplying machineries to the company for the proposed expansion.

"Investments are ongoing processes which keep coming in. We infuse funds to meet the capital requirements in order to move in industry's tandem. The tiles industry requires continuous innovations and we lead the roost as far as uninterrupted innovations goes. Therefore, our tiles are the preferred choice for certain class consumers," said Vivek Talwar, managing director, Nicto Tiles.

Nitco Tiles shares Rs 300 crore out of Rs 5000 crore tiles market in the country. The company's turnover is estimated to touch Rs 450 crore with increased demand and higher realisation from the booming construction industry.

"Price of tiles is determined by the quality of products including how much time and resources tiles development has taken and how innovative they are. It means, if the type of tiles developed is new then we surely charge premium. Therefore, innovative products get higher returns," said Talwar.

Nitco introduces innovative products at a frequency of 1-2 months with new looks, design, cutting edge etc. Acqua design and metallic finish are the new innovations in the market.

Today, demand for these types is good and may increase further. Metallic finish is used for the first time in the market and sold at Rs 100 per square feet.