Financial Daily from THE HINDU group of publications
Saturday, Oct 22, 2005
Financial Daily from THE HINDU group of publications Saturday, Oct 22, 2005 |
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Marketing
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Strategy Liberty to enter sanitaryware biz, plans Rs 50-cr investment Our Bureau
New Delhi , Oct. 21 THE Liberty Group plans to foray into the ceramics sanitaryware business through its group company, Liberty Whiteware Pvt Ltd, in collaboration with SACMI Imola of Italy. The Italian company would bring in the technology while the entire investment of Rs 50 crore would be made by Liberty. The product offering of Liberty Whiteware would include washbasins, WCbowls, bidets, shower tray and other ceramic accessories. The company is setting up a 73,000-sq. mtr manufacturing facility in Neemrana in Rajasthan which is expected to start production by mid-November and the company plans to introduce the products in the market by mid-December. In volume terms, the company would import 60 per cent of the raw material while the rest would be sourced domestically. Of the Rs 35 crore to be invested in the first phase, Rs 12 crore would be from internal accruals and the rest through debt from Corporation Bank, said Mr Adarsh Gupta, Chief Executive, Liberty Whiteware. "The Rs 15 crore to be spent in the second phase would be arranged through the group's investment company, Geofin Investments Pvt Ltd," said Mr Gupta. The annual domestic market for ceramic sanitaryware stands at Rs 700 crore, growing at 10-12 per cent per annum, he said. Out of this, the organised market is around Rs 300 crore, growing at around 16 per cent annually, he added. The company does not intend to engage a third party for the sale and distribution of the products and is currently charting out its marketing strategy, said Mr Gupta. The flagship of the group, Liberty Shoes, recently signed a joint venture (JV) with Pantaloon Retail (India) to launch a chain of footwear stores across the country. In this venture, Pantaloon would hold 51 per cent stake while the rest would be Liberty's.Liberty Shoes' turnover last fiscal stood at Rs 200 crore. Liberty Shoes scrip at the Bombay Stock Exchange closed on Thursday at Rs 258.45 with the 52-week high of Rs 653.40 and low of Rs 121.
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