H&R Johnson to add capacity

Tile company H&R Johnson (H&RJ), with 22 per cent market share, is looking at increasing its turnover to Rs 600 crore by March 2006. The company would focus on the large format vitrified tiles segment for growth.

H&RJ would expand capacity to reduce costs by 10 per cent by the next financial year. It would invest Rs 89 crore to increase production capacity by 3 million square metres (sq.m.) to 18 million sq.m. at its plant in Raigad district. Daily capacity would rise from 18,000 sq.m. per day to 27,000 sq.m. daily.

According to Vijay Aggarwal, managing director, "The expanded capacity would be utilised for production of polished vitrified formats of size 90 x 90 cm, 60 x 120 cm and 60 x 60 cm. Commercial production will begin by end of first quarter 2004."

H&RJ has 30 per cent market share in the vitrified segment. It reported sales of Rs 416 crore in the last financial year. It grew last fiscal by 21 per cent against the industry rate of 12 per cent.

H&RJ would step up marketing in West Bengal and the eastern region, where its market share was 15 per cent now. The aim was to double market share.

H&RJ brands included Johnson in wall and floor segment, Marbonite is vitrified tiles and the country's first joint free tile called Porselano.

Recently, it launched Endura in the specialised industrial and pavement tiles segment.