Somany Ceramics, India’s second largest ceramic tile manufacturer and one of the top 15 global players, is carrying on its major investment aimed at capacity expansion, a plan that has gained further momentum following the strong sale performance that the company registered in the six-month period from April to September 2021.
The project is expected to be on stream and effective by the last quarter of the FY 2021-2022, so foreseeably by March 2022.
“This is the largest expansion capacity in our recent history and will bring a net 20% increase of saleable capacity to around 76 million sq. metres/year compared to the current level of 63 million sq. metres/year”, said Managing Director Abhishek Somany (above). “There are some good reasons why the capacity expansion was essential. Firstly, the structural shift in consumer preference from unorganised to organised brands makes it imperative to commission additional capacity rapidly or risk losing market share to competitors who expand faster than us. Additionally, the capacity expansion will be concentrated in large format glazed vitrified tiles & technical porcelain range, allowing us to insource a portion of production that is currently outsourced to third party manufacturers. All of this will have a very positive impact on our margins, so we expect to be able to pay back the investment within a very short timeframe.”