Sanitaryware major Jaquar Group, which today acquired one of the plants of the Kutch-based Euro Ceramics for Rs 100 crore, said it will invest Rs 310 crore this financial year to augment capacity and to set up new a new facility for lighting products.
Earlier in the day, Jaquar said it paid Rs 100 crore to acquire a manufacturing plant of Euro Ceramics at Bhachau in the Kutch area of Gujarat. The plant is spread over 17 acres and is among the most advanced facilities in Asia, Jaquar Group promoter and director Rajesh Mehra said.
"We have taken over the plant of Euro Ceramics in a Rs 100-crore deal. With this, we now have five manufacturing facilities in the country and one in South Korea. We will invest an additional Rs 80-90 crore in this facility this year to modernise it and expand capacity," Mehra said.
This upgrade will take the capacity from 1.2 million sanitary ware pieces to 1.8 million pieces, he added.
On the capex plans, Mehra told PTI that the company has budgeted around Rs 310 crore this fiscal year, including the additional Rs 80-90 crore investment in the plant acquired in the Kutch.
"We make faucets and shower products at Bhiwadi in Rajasthan, while lighting products are made at Manesar (Haryana). This year, we have planned to set up a greenfield plant at Bhiwadi to manufacture lighting products at an investment of Rs 100 crore and the unit will become operational in 2018," Mehra said.
In addition, Jaquar will invest around Rs 130 crore to expand the existing faucet plant at Bhiwadi to take production capacity to over 1 lakh pieces a day, he added.
Jaquar is also adding an assembly line to make drivers for lighting products at the Manesar plant which will be commissioned next month.
The company has three plants at Bhiwadi in Rajasthan, and two at Manesar.
The privately-held Jaquar posted a turnover of Rs 2,753 crore in fiscal 2017 and has set a target of Rs 3,500 crore topline in fiscal 2018, Mehra said.
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