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Regency Ceramics to hike capacity

Our Bureau

HYDERABAD, Feb. 19

REGENCY Ceramics Ltd, engaged in the production of ceramic floor tiles, has embarked upon a Rs 50-crore expansion project to increase its installed capacity from 62 lakh sq.m. to 100 lakh sq.m. per annum.

The project, funded by financial institutions to the tune of Rs 32 crore and the remaining, Rs 18 crore, raised through internal accruals, is expected to be completed by August.

According to the Vice-Chairman and Managing Director, Mr G.N. Naidu, Regency's annual turnover would increase to Rs 200 crore from the current level of Rs 100 crore per annum following the expansion.

Speaking to Business Line, Mr Naidu said that besides expansion, the company was undergoing a modernisation programme at a cost of Rs 12 crore. The programme, for which financial institutions had advanced Rs 11 crore, would be completed by June.

The company was also planning further expansions in future to increase its turnover to Rs 500 crore by 2004.

He said that Regency would be launching vitrified tiles in the market in August. The company has a capacity to produce 5,000 sq.m. per day of vitrified tiles, which are stated to be in good demand at present.

Apart from catering to the needs of the domestic ceramic floor tile market in which it has a 15-per cent share, the company exports to the Middle-East and Africa. Its annual exports turnover is around Rs 15 crore. The company has posted a net profit of R s 10 crore during 1999-2000.