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Tile-maker H&R Johnson (India) is planning to set up a manufacturing unit at Panagarh in Burdwan district around June 2015.
Coming up at a 65-acre plot in the region, this will be the company’s first tile manufacturing facility in the eastern region of the country. The Panagarh facility will have four lines, which are being imported from China, Spain and Italy. The company, however, did not reveal the expected investments in the facility.
“Since there has been a change in strategy and the focus of the unit will be on larger slabs, we are yet to finalise the actual investment here,” said Ravi Mohan Ojha, General Manager – East.
According to Ojha, the unit was earlier supposed to manufacture tiny tile slabs (of 1 foot by 1 foot). However, keeping in mind the present market demand, larger tile slabs (3 feet by 3 feet), will now be produced.
“Tenders for construction of the Panagarh unit have already been floated,” Ojha said.
Export markets
The proposed Bengal facility will also help the company cater to the export markets of Bangladesh, Nepal and Bhutan.
“We hope to increase our presence in these markets once the Bengal unit becomes operational,” Ojha said. Apart from the upcoming facility in West Bengal, the company has nine other tile manufacturing units across the country. Two other bathroom fittings manufacturing units are coming up in Baddi (Himachal Pradesh) and Samba (Jammu & Kashmir).
Currently, the domestic tiles market is pegged at Rs 18,000 crore with the organised sector accounting for only 40 per cent of it. H&R Johnson, primarily known as tile-maker, has a market share of nearly 22 per cent. It recently entered into the bathroom fittings and wooden flooring segments.
Retail Presence
A division of Prism Cements Ltd, H&R Johnson is planning to shore up its retail presence in the Eastern and North Eastern regions through different shop-in-shop formats.
The company has already inked pacts with 25 of its 150 dealers here in the region. Nearly 75 stores have been planned across the region in the next three years. Primary focus, according to Ojha, will be on tier-II and III markets.
These shop-in-shop formats will be branded as Johnson Arena (for stores having a size of nearly 200 sq feet), Johnson Class (for formats of around 400 sq feet) and Johnson Xclusiv (stores between 600-1000 sq feet).
abhishek.l@thehindu.co.in
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