Indian Head Sanitary Ware Companies Have Invested In Large Production Bases
In the first half of 2022, India’s head sanitary ware companies have announced their expansion one after another.
Asian Granito India Ltd (AGL) raises Rs. 4.4 billion to expand production capacity
On May 19, Asian Granito India Ltd (AGL), an Indian-listed bathroom company, announced that it has completed land acquisition for its three new plants in Morbi, Gujarat. Recently, the company issued more than 69.99 million shares at a price of Rs. 63 per share to raise Rs. 4.4 billion to expand its production capacity.
AGL’s consolidated revenue for fiscal 2020-2021 is Rs 12,923 crore. The company is reportedly planning to set up three separate tile, sanitary ware and flooring plants in Morbi, Gujarat, as well as India’s largest showcase center.
Future Ceramic Pvt Ltd mainly produces glazed tiles in the sizes 1200×1200 mm, 1200×1800 mm, 1200×2400 mm, 800×1600 mm and 800×2400 mm. The estimated annual production capacity of the plant is 5.94 million square meters. The investment is expected to be approximately Rs. 1.74 billion. The plant is expected to generate revenues of approximately Rs. 40 crores at optimum capacity.
AGL Sanitaryware Pvt Ltd currently imports through outsourcing and sells under the AGL brand. The new plant is planned to have an annual capacity of 660,000 units with an estimated investment of approximately Rs 460 million. The plant is expected to generate revenues of about Rs. 100 crores at optimum capacity.
AGL Surfaces Pvt Ltd focuses on Stone-Plastic Composite (SPC) flooring with a focus on overseas markets and the plant is expected to have an annual production capacity of 2.97 million square meters. The investment is expected to be approximately Rs 330 million. At optimum capacity, the plant is expected to generate revenues of about Rs. 20 crores.
The company will also set up its largest showcase center in Morbi to showcase all categories under the company’s umbrella. The display center area is planned to be a 5-storey building covering 150,000 square feet with an estimated investment of around Rs 40 crore. This will generate Rs 500 crore in other revenues over the next 4-5 years.
The company has 9 factories in Gujarat, 311 specialty stores and 12 display centers in India.
India’s Cera invests Rs. 1.97 billion to expand sanitary ceramics and faucet capacity
Cera Sanitaryware Limited, another Indian-listed bathroom company, recently announced that it will expand its sanitary ware and faucet production capacity in two phases with an estimated investment of Rs. 1.97 billion.
The investment includes a new sanitaryware plant and a new faucet factory. Currently, Cera Sanitaryware Ltd. has a sanitary ware capacity of 2.5 million units and a faucet capacity of 30,000 units per year. Existing capacity utilization is close to 90-100%.
In the first phase, an investment of Rs. 1.28 billion is expected for sanitaryware with a construction period of 24-30 months. The first phase of faucet expansion is expected to be Rs 690 million with a 12-month construction cycle.
In September 2021, the monthly production capacity of the faucet plant was 180,000 units, which has increased to 250,000 units by March 2022. In FY23, production will be further increased to 275,000 units per month.
For the fiscal year 2021-2022 ending March 31, 2022, the company has consolidated revenues of Rs 144,175 crore.