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Tiles maker, Asian Granito India Limited (AGIL) has completed expansion at its subsidiary, Crystal Ceramic Industries Pvt Ltd at Mehsana, Gujarat, a company statement said.
Under its brownfield expansion, Crystal Ceramics added 12,000-square metres per day capacity in a new production line of glazed vitrified tiles at its Mehsana Plant in Gujarat.
The company invested ₹25 crores for the expansion. Asian Granito holds a 70% equity stake in the company.
Kamlesh Patel, Chairman and Managing Director, Asian Granito India Ltd said, “This strategic brownfield expansion was planned keeping in mind low cost natural gas benefit at Crystal Ceramics, which helps the company to further reduce its manufacturing cost.”
“With this capacity expansion Asian Granito on a consolidated basis will further improve its market share in the domestic and export market,” Patel said.
Post the expansion, total capacity of Crystal Ceramics will go up to 36,000 square metres per day. Crystal Ceramics will make large format 600x1200 mm GVT tiles for domestic and export markets, an official statement said.
AGL looks to maintain cost optimisation measures and improve operational efficiencies. “The company has a good presence in rural and Tier-II cities. We will continue to focus on creating value-based products for the middle class, which has been crucial for the growth of the company,” Patel said.
The capacity addition of 12,000 square metres per day will add an incremental sales of around ₹70-75 crore per annum in Crystal Ceramics and Asian Granito India Limited’s consolidated turnover. Crystal Ceramics had reported a turnover of ₹184.45 crores in fiscal 2021.
Asian Granito had posted net profit of ₹57.23 crore on a consolidated basis indicating a growth of 36 per cent over the previous year. Net sales for the fiscal 2021 was reported at ₹1,292 crore, up 6% over previous year. EBITDA increased 16% during the year to ₹135.95 crore for the fiscal.
Asian Granito shares traded marginally positive at ₹186.80 on BSE Wednesday.
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