Encouraged by the government's emphasis on projects such as housing for all and new smart cities, tiles manufacturer Asian Granito India Ltd aims to achieve Rs 2,000-crore turnover by 2020.
The company will focus on high-value products, including glazed vitrified tiles, digital ceramic tiles, marble and quartz.
Mukesh Patel, Managing Director, Asian Granito India, stated that the market for quartz stone in India is estimated at around Rs 200-250 crore and growing at 25-30 per cent per annum.
"Quartz is a premium product and hence we expect to earn a healthy EBITDA margin in the range of 30-32 per cent. The company also aims to expand its retail sales and increase the share of retail sales to 50 per cent from 35 per cent currently," Patel said, adding that the growth momentum will be maintained.
The company has recently completed the expansion of third line for quartz stone at its Himmatnagar plant and started commercial production this month.
Post expansion, Asian Granito has doubled its quartz stone capacity to 1,600 square meters per day by investing Rs 20 crore. It has received orders worth Rs 25 crore from domestic and exports market.
Kamlesh Patel, Chairman and Managing Director, said, "The expansion in quartz is in line with company’s strategy to focus on high-end and value added products. Going forward we have a vision to be among the top 3 tiles companies and reach a revenue of Rs 2,000 crore by year 2020. We expect the quartz stone and marble segment to grow to Rs 350-crore turnover by 2020.”
Patel further mentioned that the new expansion in quartz will bring additional sales of Rs 60 crore in fiscal 2017-18. Post expansion, Asian Granito will double the capacity of its quartz stone to 5.28 lakh square meters per annum (1,600 square meters per day) in 2017-18 from existing 2.64 lakh square meters (800 square meters per day).
Asian Granito shares ended up by 0.37 per cent at Rs 383.05 on the BSE.