Tiles maker Somany Ceramics (SML), a flagship company of H L Somany Group, on Thursday said it would invest Rs 150-200 crore over the next two years on organic and inorganic growth in India.
The company having annual production of 19.5 million square metres proposes to set up an ultra-modern tiles manufacturing plant in Karnataka, and is looking to add 3-4 million sq metre capacity in Gujarat through the acquisition route.
"We shall invest Rs 150-200 crore on expansion in India over the next two years. It includes our plan to set up a modern plant at Tunkur in Karnataka having 36 mn sqm annual production capacity, besides few acquisitions in Gujarat," SML CEO G G Trivedi said.
"We have already acquired close to 85,000 sq metres of land in Karnataka for the proposed new facility in future," he said.
In near future we can also pick up 26 or 51 per cent stake in one or two tile manufacturing units in Gujarat, engaged in manufacturing of vitrified and floor tiles, Trivedi said.
"It would add up another 3-4 million sq metres to our production capacity in Gujarat," he said.
The company has combined production of 5.5 million sq metres through its two joint ventures at Morbi, which is seperate to 19.5 million sq metre annual production from its two plants, one each in Gujarat and Haryana.
The company's present JV partners at Morbi are Vintage and Commnader.
SML has set an ambitious target of achieving Rs 1,250 crore turnover in the current fiscal (2012-13). It closed with a turnover of Rs 921 crore in last fiscal (2011-12), and reported Rs 25 crore net profit.
