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Cera Sanitaryware Ltd plans to invest Rs 150 crore over the next two years on capacity expansion.
“Currently, we have the capacity to produce 2.7 million pieces a year. We will increase it to beyond three million,” Vikram Somany, Chairman and Managing Director, Cera Sanitaryware, told newspersons after re-launching Cera Style Studio here on Sunday.
TELANGANA
The ongoing uncertainty over separate Statehood for Telangana in Andhra Pradesh has impacted Cera’s plans to set up a plant in AP.
“We want to set up a manufacturing plant in AP. But as of now, there is no certainty as to what happens and where we will go. So, we stalled the proposal,” he said.
Setting up a new manufacturing plant would generally cost about Rs 150 crore, he added. Cera now has Asia’s largest manufacturing plant, at Kadi in Gujarat.
The company, which posted Rs 320 crore revenue in the last financial year, is expecting to close 2012-13 with a turnover of Rs 475-500 crore.
Market size
“While the industry is growing at 15 per cent, for us topline growth is in the range of 50 per cent,” Somany said.
Up to 40 per cent of total business of Cera comes from the southern States. The market size for sanitaryware is Rs 2,500 crore, according to industry estimates.
Cera will open two more style studios (which display products) in Chennai and Delhi before the end of March this year, he added.
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