Somany Ceramics plans acquisitions, brand building
25 Apr 2014
Somany Ceramics is planning major expansion of capacity and brand building with planned investment of Rs150 crore over the next 12 to 24 months.
The Delhi-based ceramic tile and sanitary ware maker is actively engaged in negotiations to acquire between 26 and 51 per cent stake in two tile-makers in Gujarat, Business Line quoted Abhishek Somany, joint managing director of the company, as saying.
Somani Ceramics currently produces 41 million sq m of vitrified and ceramic tiles from three fully-owned facilities (two in Kadi in Gujarat and one in Kassar, Haryana) and six joint venture facilities at Morbi in Gujarat.
Somani Ceramics is also in the process of expanding capacities at existing facilities.
Over the last four-five months, Somany Ceramics has also opened exclusive outlets in Lucknow, Hyderabad, Deharadun, Rohtak, Pilibhit and Kochi, catering to the demand for ceramic tiles and sanitary ware.
Somany tiles are also marketed under the sub-brands Vitro, Duragress, Durastone and VC Shieldfor vitrified, glazed.
The company also plans to invest around 2-3 per cent of its turnover for brand-building.
The company is looking to acquire stressed assets or enter into joint ventures to make use of the current market opportunities.
The target companies have a net worth of Rs30-75 crore.
Somany also offloaded 11.19 per cent stake to private equity firm Creador, at approximately Rs50 crore, in February this year to reduce debt.
The company reported a turnover of around Rs845 crore and a net profit of Rs17 crore for the first nine months of FY-14.
