The Hindu Business Line : City Tiles sees 20 pc growth on construction boom

Tiling facts
The technology, machinery have been imported from Italy.
Total investment is Rs 50 crore; eyeing Rs 100-cr IPO.
Looking at very specific target segment.

Mumbai , June 30

The Gujarat-based City Tiles expects to grow by 20 per cent this year on the back of a robust growth in the construction industry, senior officials of the company said.

"Going hand in hand with the growth of construction in urban areas, the floor tile industry has been growing at 20 per cent. With more urbanisation, it is expected to grow further," Mr B.R.M. Rao, CEO, City Tiles, said.

City Tiles has launched a new range of vitrified tiles. These tiles are to be marketed in the metros, starting with Mumbai.

The technology and machinery for these tiles have been imported from Italy with a total investment of Rs 50 crore.

Better looks

"With urbanisation comes more disposable income and people have started looking for better houses. Tiles give a better look to the house and they provide durability and longevity to the home," Mr Rao said.

"Tiles are the best option for floors because they are non porous. As a result, they do not break easily. They are the most hygienic option as well," Mr R.D. Patel, Chairman, City Tiles, said.

According to him, vitrified tiles can be cleaned easily with acid and don't wear out, even in 15 years.

City Tiles is looking at a very specific target segment. It is mainly looking at the urban market, comprising 22 cities. The tiles are high-end products and are priced at a premium. The exact price range for the new product, however, is yet to be decided.

Currently, the company is exporting to South Africa and other African countries. It is looking to expand its geography to some of the more developed countries.

Rs 100-cr IPO

The company may look at an initial public offering to raise funds for capacity expansions. A Rs 100-crore IPO would be launched shortly, company officials said.

"We intend to expand our capacities to keep up with the growth in the industry. We plan to launch our IPO as soon as the markets are a little more stable,'' said Mr Rao.

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