Kajaria Ceramics is planning to invest Rs 36 crore in expanding the

capacity of its existing plant in Sikandarabad. The added capacity of

2.40 msm per annum will be used to manufacture vitrified tiles. The

company has so far been importing the vitrified tiles from China under

the brand name Kerrogres and in two years wants to meet the whole

demand by manufacturing India. For now, the company will continue from

China to supply in southern part of India. In India it will

manufacture the vitrified tiles under the same brand name.

The company expects a turnover of Rs 80-85 crore from the current expansion.

The total capacity of the Sikandarbad plant is 6.9 square meter and

would increase to 9.30 msm per annum. The company also has its

facility at Galipur in Rajasthan with a capacity of 14 msm per annum.

Kajaria has been a late entrant in the vitrified tiles segment. “We

are now planning to make up for the lost time and gain market share in

this segment. We are going in the right manner,” said Ashok Kajaria,

chairman and managing director, Kajaria Ceramics. The company will

also be setting up a Greenfield project next year to expand its

capacity. Kajaria said that the company would not be going for the

inorganic route of acquisitions for further expansion.

The size of the Indian tile industry is approximately Rs 9500 crore

with a growth rate of 15-16 per cent. Kajaria Ceramics’ total turnover

is Rs 691 crore. It expects a growth of 13 per cent for 2009-10 to

reach a turnover of Rs 780 crore and a further growth of 22 per cent

for 2010-11 to reach a turnover figure of Rs 950 crore. “Due to the

slowdown there has been a dip in demand, but we have grown still.

Moving on we hope to grow at a higher rate with market reviving,”

Kajaria added.