New Delhi: Tile manufacturer Somany Ceramics plans to invest Rs45 crore in expanding the capacity of its plant in Haryana over next few months as part of its plan to become a Rs 650 crore company by 2011-12.
The company is also looking at setting up a greenfield project in Gujarat, Somany Ceramics Ltd joint managing director Abhishek Somany told the agency.
“We have earmarked an investment of Rs45 crore for expanding the capacity of our plant in Kassar (Haryana) to 37,500 sq metre of tiles per day, from 30,000 sq metre daily currently,” he said.
He said the investment would be made over the next few months but did not provide details regarding sourcing of the fund.
“The expanded capacity at our plant should be commissioned by March-April 2010. It will help us to add another Rs60 crore to our revenue annually,” Somany said.
The expansion is part of the company’s plans to increase its turnover to Rs650 crore by 2011-12.
“Our plan is to grow to become a Rs650 crore company by March 2012, from Rs462 crore in last fiscal. In the long run our strategy is to deepen our presence in wall and floor tiles,” he added.
Somany Ceramics has also acquired a 18 acre plot in Gujarat for setting up a greenfield plant.
“The new plant will come up adjacent to our existing plant at Kadi,” Somany said, without giving details regarding investment plan for the project or the likely timeframe for its completion.
“The plant will be three times bigger than the existing Kadi plant in terms of value and two times bigger in terms of volume,” he said.
The existing plant at Kadi has a daily capacity of 16,000 sq metre of tiles.