Bathroom solutions provider Cera Sanitaryware Ltd will invest Rs 140 crore to increase the capacities of its faucet and sanitaryware plants at Kadi in Mehsana district of Gujarat in two years.

The capacity of the faucet plant is being doubled from 2,500 pieces to 5,000 a day whereas that of the sanitaryware plant will be raised from 20 lakh to 27 lakh pieces a year, Mr Vidush Somany, Executive Director, said on Monday.

The share price of Cera Sanitaryware on the BSE closed 1.40 per cent up at Rs 180.70.

Overseas buys

Cera is looking for acquisitions in Europe, Mr Somany said, adding these would be funded through the company’s internal accruals and debt.

In the third quarter of 2011-12, ended December 31, 2011, Cera Sanitaryware reported an increase of 39 per cent in sales and 4 per cent in net profit.

While sales were Rs 82.48 crore (Rs 59.78 crore), the profit after tax was Rs 7.95 crore (Rs 7.65 crore).

Mr Somany said the company recorded a 37 per cent growth in sales in the third quarter against the industry’s 18-20 per cent. It is now targeting to increase the turnover from Rs 242 crore, with a PAT of Rs 26 crore, in 2010-11, to Rs 320 to 330 crore in 2011-12.

Cera Sanitaryware outsources production to a number of Indian and Chinese companies. In 2011-12, it outsourced production worth Rs 140 crore, which it plans to increase by 40 per cent next fiscal, he said. The company earns nearly 8 per cent of its revenues through exports.

On Monday, the company unveiled a new logo to reflect the versatility of its products. It is also planning a major media campaign using the celebrity endorsement route, Mr Somany said.

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