The Hindu Business Line : Neycer to get re-listed shortly

Sanitary ware maker Neycer, part of the Spartek Group, will be re-listed on the bourses within a few months. It is expanding the capacity of its Vadalur plant in Tamil Nadu from 5,000 tonnes to 12, 500 tonnes.

The Rs 13-crore expansion project is expected to be completed by April this year, with the company likely to clock net sales to the tune of Rs 32 crore and a profit of Rs 10 crore this fiscal.It plans to offer 28 new products in the bathroom ceramics segment.

“We are also launching a new marketing campaign to reposition the company as a premium and upmarket player in the sanitary ware industry, estimated at Rs 1500 crore ,” Mr T. Krishna Prasad, Chairman of Spartek, told Business Line.

Spartek has infused a fresh capital of Rs 28 crore in the company, to set up a kiln that could save up to 50 per cent of its fuel costs, apart from a drying and casting system.

It may re-visit its prices and pass on part of the fuel cost saving to its consumers.

“We are targeting a turnover of Rs 60 crore for next fiscal and Rs 100 crore for 2011-12 exclusively from the bath products division.

After our second round of expansion, we may explore the possibility of tapping the overseas market,” Mr Prasad said.

The company had gone through financial distress in 1987 and was taken over by Spartek in 1990.

With the BIFR process having been accepted only in 2008, the company had deferred its modernisation programme.

“Now the company is back on the rails and we are planning to come out with new products in the premium segment. As its financial health has regained, we will be re-listing the company on the BSE and MSE within the next few months.”

As part of its new marketing campaign, the company will look at enlarging its distribution network in Tamil Nadu, Kerala and Andhra Pradesh, besides re-entering the western and northern Indian markets. “We will be increasing our dealer network from the present 132 to 300 within the next two months. Unlike our earlier strategy, we will be making stocking arrangements to ensure that the products are available across all the major metro markets in the country,” Mr Varun, Tripuraneni, Manager, Managing Business Development, said.

More Stories on : Announcements | Stocks | Ceramics

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page