Ahmedabad-based Cera Sanitaryware Limited will be making a capital expenditure of Rs 150 crore in its manufacturing capacities in two to three years, according to chairman and managing director Vikram Somany.
The rolling plan includes ramping up the production of sanitaryware from 2.7 million pieces now to 3 million pieces a year, besides scaling up faucets manufacturing from 2,500 pieces to 10,000 units a day at its facility in Kadi, Gujarat.
“We have Rs 30 crore in fixed deposits. Given the 50 per cent rate at which the debt-free company is growing, we are hopeful of garnering enough money to fund the expansion through internal accruals,” he said.
Relaunching Cera Style Studio, a ‘touch-and-feel’ products display outlet primarily targeting institutional sales, here on Sunday, Somany said the company had eight such studios across the country, and would launching three more – one each in New Delhi, Chennai and Kolkata – by October each with an investment of Rs 5-10 crore .
Stating that south was an important market for the publicly-listed company, contributing about 40 per cent to its overall sales, including 20 per cent from Andhra Pradesh, Somany said Cera was contemplating setting up a manufacturing facility in the state, with around Rs 150 crore. “The proposal will be on the drawing board stage until the clouds of political uncertainty (separate Telangana statehood issue) are cleared,” he added.
