Asian Granito forms joint venture, to invest ₹35 cr in quartz stone plant

Leading tile maker Asian Granito India Ltd (AGIL) has announced a joint venture with Paramshree Granito Pvt Ltd, and will invest ₹35 crore in setting up a greenfield plant for quartz stone in Gujarat.

In a statement here, AGIL Chairman and Managing Director Kamlesh Patel said, in the first phase, the joint venture company, Camrolla Quartz Ltd, will have a capacity to manufacture 1,600 sq 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 ₹70 crore in the first year of operation (2018-19), from the joint venture.

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

AGIL will have a 51 per cent stake in the joint venture, 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 per cent will be for the domestic markets.

Demand for quartz 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 and commercial spaces. It is a substitute material for granite and marble. The US 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 sq meters, of which the US market is around 65 per cent.

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 US and other countries. AGIL has expanded its manufacturing capacity from 2,500 sq metres per day in the year 2,000, to over 1 lakh sq metres now (including outsourcing).

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