Leading tile maker Asian Granito India Ltd (AGIL), on Wednesday, announced a joint venture company with Paramshree Granito Pvt Ltd, and invest Rs.35 crore in setting up a green-field plant for quartz stone in Gujarat.

In a statement here, AGIC Chairman and Managing Director Kamlesh Patel said, in the first phase, the JV company, Camrolla Quartz Ltd, would have a capacity to manufacture 1,600 square meters of quartz stone per day, and become commercially operational in April 2018. It would double the capacity subsequently.

The plant, to be set up on asset-light model at Prantij in Himmatnagar, North Gujarat, will initially manufacture 15, 20 and 30 mm thickness slabs of quartz in large formats of 11.5 feet X 6.50 feet. The company expects sales of around Rs.70 crore in the first year of operation, FY 2018-19, from this JV.

Quartz market

Currently, AGIL has a market share of nearly 18-20% in the branded quartz market in India. Market for quartz stone in India is estimated at around Rs. 200-250 crore and growing at 25-30% per annum.

AGIL will have a 51% stake in the JV, which will initially start with two lines of production, followed by a third line every six months until it has a total of six lines in two years. Seventy per cent of its production will be exported while 30% will be for domestic markets.

Quartz has fast emerged as the latest trend for all kind of counter tops and wall surfaces and its demand is growing across the world on account of aesthetics, durability, strength, variety and less wastage or damage compared to natural marble. In India demand for the quartz is limited to high-end hotels, expensive homes etc.

Quartz slabs are mostly preferred for use in high-traffic areas such as malls, airports, railway stations, hospitals, commercial spaces etc. It is a substitute material for granite and Marble. The United States is the biggest market for quartz, followed by Europe, Canada, Australia and New Zealand. The total market size for engineered quartz stone across world is around 3 billion square meters, of which the US market is around 65%.

Target market for the new quartz plant will be counter tops and interiors (floors) in kitchens, malls, airports, high-end hotels and other places. Replacement of counter tops is the largest market for engineered quartz in the U.S and other countries.

AGIL has expanded its manufacturing capacity from 2,500 square metres per day in the year 2000 to over 1 lakh square metres currently (including outsourcing).

Related Topics
comment COMMENT NOW