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[November 2008]
Cera Sanitaryware Hopes Steady Sales by Year-end
Bathroom solutions provider Cera Sanitaryware is confident that it can weather the storm of the global financial crisis as it has not impacted the firm's sales in India and expects sales growth of 30-35 per cent by year-end. "We don't see a downswing in demand...We are targeting growth of about 30-35 per cent and higher margins by the year-end," Cera Sanitaryware Executive Director Vidush Somany told reporters.
Despite the slump in realty sector, which resulted in the southward movement of stock prices of realty giants, Somany remained positive of a steady demand in the housing sector.
The company provides bathroom solutions and has just ventured into the premium designer tiles segments, which it would sell to developers and dealers directly.
"We would be providing our premium tiles to high net-worth individuals...," Somany said. The company sells its products to reality firms, including Unitech, Jain Builders, Alpha G Corp, Kalpataru Builders.
The company's manufacturing plant near Ahmedabad has a capacity of 2.2 million pieces of sanitary-ware per annum and is eyeing expansion of its retail and export network in this fiscal. At present, the company exports its high-end products to countries in the Middle East and imports tiles from Italian tile makers Rondine, Emil Ceramica and Gigacer and Spanish Diago Ceramica and Rocerca.
"We are increasing our retail and export network. We have recently tied up American Standard and would market their products in India," Somany said.
Of the Rs 1,000-crore organised sanitary ware market in India, the company holds about 18 per cent market share, Somany said. Its network of 400 retailers and 4,000 sub-retailers showcase their total product range except tiles. The company clocked a 40 per cent jump in sales at Rs 41.4 crore in the third quarter ended September 30, 2008 over the same period last year.
Net profit was up by 76 per cent to Rs 3.8 crore from Rs 2.2 crore in the corresponding period last year. Shares of the company were trading at Rs 64, down by 7.25 per cent on the Bombay Stock Exchange in the afternoon trade today.
ENDS