 |
 |
||||||
[December 2009]
Somany Plans Greenfield Tile Plant in Gujarat
Buoyed by the early signs of revival in the economy, Delhi-based Somany Ceramics Ltd is setting up a greenfield plant for wall and floor tiles near Ahmedabad in Gujarat. The company, which is expanding production capacity in tiles, has bought an 18-acre piece of land for Rs 3 crore. This is adjacent to its existing plant in Kadi.
Abhishek Somany, Joint Managing Director of Somany Ceramics Ltd, said: "We have bought a large piece of land close to our existing tiles manufacturing plant at Kadi where we intend to set up a new greenfield plant. The new greenfield plant will be three times bigger than the existing one in terms of value and two times bigger in terms of volume. We had to buy more space in Kadi since we were landlocked there".
Currently, the company is adding another 7,000-9,000 square metres per day to its existing plant in Haryana for an investment of Rs 40 crore. "The expanded capacity at our Haryana plant should commission by March 2010 and add another Rs 60 crore to our revenue. In the long run, our strategy is to deepen our presence in wall and floor tiles through our own plants in Haryana and Gujarat, and deepen our presence in vitrified tiles through contract manufacturing," Mr Somany added.
About 60 per cent of the company's revenue comes from the Gujarat plant at Kadi which has a capacity of 15,000-16,000 square metres per day.
"This news is a clear indication of India's huge confidence in Gujarat as a centre of ceramic excellence," said Kevin Hudson, Exhibition Director, Indian Ceramics 2010. "It is news like this that has seen record levels of exhibitors signing up for the event.
"The concept of putting this show right in the heart of where the action is has undoubtedly made many people realise that central global shows are not as effective as regional events with a targeted message.”
www.indian-ceramics.com
ENDS