Tiles and sanitaryware major Somany Ceramics Ltd (SCL) would be focusing on the south Indian market in the coming years. The company already has two manufacturing units one each in Haryana and Gujarat.
Now, they have acquired 68,000 sq mt of land in Karnataka, where they plan to set up a greenfield plant in days to come. Chairman and Managing Director of SCL Shreekant Somany said "In the coming years our focus will be on the south India."
The company having annual production of 19.5 million sq mt besides proposing an ultra-modern tiles manufacturing plant in Karnataka, is also looking to add 3-4 million sq mt capacity in Gujarat through the acquisition route.
Its target for this fiscal is increasing production to 30 million sq meter. This would through both the organic and inorganic route. The company also plans to achieve turnover of Rs 1000 crore this fiscal.
Somany was also optimistic about the growth of the tiles industry. "Though there is slow down in the real estate sector, new construction are still being undertaken. Also, there is tremendous demand for office and commercial space in the country. I expect 12%-15% average growth for the tiles industry at least for the next 15 years," he added.
He further informed that the since urbanisation will increase in the future, so will the demand for tiles and ceramics.
The present sales of the company constitutes 35% from projects while 65% is from the retail business. "The figures reverse just four years ago," Somany said, justifying his optimism for the ceramic industry.
SCL, a flagship company of the H L Somany group has 87 store across the country and plans to add another 20-25 stores by the end of this fiscal year. It has two manufacturing facility one in Kassar, Haryana and other in Kadi, Gujarat. It has also taken up stake in two companies based in Morbi, Rajkot.
