Cera Sanitaryware Ltd, a leading bathroom solutions provider, will invest Rs 140 crore in its manufacturing facility in Gujarat to enhance capacity.

The investment involves an outlay of Rs 100 crore to increase production of range of wall and vitrified tiles from the present 2.7 million to 3 million pieces and another Rs 40 crore for manufacturing faucets from 2,500 to 5,000 pieces per day at the facility in Kadi in Mehsana district of Gujarat.

According to Vikram Somany, chairman and managing director, the vitrified tile market is undergoing rapid changes especially on the manufacturing side. The launch of new digital wall and vitrified tiles is one such step taken by Cera to reaffirm the brand in the market, he added.

Despite the adverse market conditions, he said the company has achieved a 42 per cent growth in wellness products in the first quarter and is targeting a 50 per cent growth to achieve a sales turnover of Rs 501 crore by the end of the current fiscal. The sales turnover last year was Rs 320 crore.

Somany, who was here in connection with the launch of digital tiles, told Business Line that Kerala is the only market where the company has achieved a 45 per cent growth in wellness products. The total market size in the State is estimated at Rs 300 crore both in organised and unorganised sector.

With the introduction of new products, he said Cera is looking 20-25 per cent more business. The focus is more on tier II towns now, as the company is expecting a good chunk of business.

Asked about the competition from import of products from China, Somany said that the Indian manufacturers of tiles were achieving success against their Chinese competition because of cheaper natural gas availability, high quality and competitive labour charges in India.

Cera, established in 1980, has successfully ventured into other bathroom products such as faucets, shower enclosures, steam cubicles, whirlpools etc. “It is but natural that Cera has now ventured into tiles for quantum leap it is planning in the coming years”, Somany said.

The replacement market for wellness products is also registering a 15 per cent growth in India, which holds significance for the company in its fast track growth plans for the years ahead, he added.

> sajeevkumar.v@thehindu.co.in

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