Japan's LIXIL acquires Sentini Sanitarywares

Japanese diversified housing and building materials company LIXIL Corporation has announced the acquisition of Sentini Santarywares and plans to invest about Rs 400 crore, including the acquisition, to bolster its ceramics production capacity in the country.

This facility, located near Eluru in Andhra Pradesh, will cater to the growing Indian market and also serve as a regional hub for the global supply chain network.

LIXIL plans to use this manufacturing facility of Sentini Sanitarywares as a multi brand facility with products from GROHE and American Standard to be produced here.

After the acquisition, the company will be renamed LIXIL India Sanitarywares Private Limited. The factory, which has a production capacity of 1 million units per year, is designed to upscale to 2 million units per annum.

Shubhajit Sen, LIXIL India Country Head, said “The plant will be upgraded and re-started by August 2018 to conform to LIXIL specifications. About two-thirds of the proposed investment of Rs 400 crore would go into the acquisition of Sentini and the rest for further expansion and upgradation.”

Local ceramics market

“We see great growth potential in India and, with this investment, aim to capture 15-20 per cent share and lead the local ceramics market in the next 3 years,” Sen told Business Line.

Seshagiri Rao Tipirneni, Chairman of Sentini Group, will continue to be a shareholder and will act as an advisor to the Board of Directors of this entity.

Kinya Seto, LIXIL President and CEO, in a statement said, “This investment demonstrates our commitment to the dynamic Indian market and its consumers. The move also strengthens our overall ceramics production capacity, enabling exports to key markets such as the US.”

Bijoy Mohan, LIXIL Asia Pacific CEO, said, "Asia continues to be a growth driver for LIXIL. Enhanced local capacity along with flexibility and agility in the supply chain will help LIXIL achieve market leadership in India. Our investment in this factory will create significant value for our employees, customers, consumers and communities. ”

Once initial upgrades have been completed by the second half of 2018, the 45-acre facility is expected to be one of the most technologically advanced plants in India, with the ability to be easily expanded further.

A global leader in the housing and building industry, LIXIL brands include, American Standard, GROHE, DXV, INAX, and Permasteelisa, all leaders in the industries and regions in which they operate. LIXIL operates in more than 150 countries and employs more than 70,000 people.