Bathroom fittings player, Jaquar Group, on Tuesday announced taking over the manufacturing plant, including facilities and assets of Kutch-based Euro Ceramics Ltd, for a consideration of Rs 100 crore.
The multinational bathroom fittings solutions provider looks at backward integration by acquiring the facilities and assets of Euro Ceramics, which was an OEM for Jaquar. "This will give us a leadership position, strengthening our proposition of a ‘complete bathroom solutions’ provider. It will further help us achieve a turnover of Rs 3,500 crore by fiscal 2017-18,” said Rajesh Mehra, Promoter and Director, Jaquar Group. The company has a current turnover of Rs 2,753 crore. Funding for the investment will be met through internal accruals.
The Euro Ceramics plant in Bhachau, Kutch, is considered one of the most modern sanitaryware facilities located in an over 17-acre plot. The plant, having a workforce of over 400, has an installed production capacity of 1.2 million sanitaryware pieces.
Jaquar has also lined up additional investment of Rs 75-80 crore in the plant over the next one year towards modernisation and upgradation. The upgradation will increase the plant capacity to 1.8 million pieces in fiscal 2017-18.
This strategic deal takes Jaquar Group’s manufacturing to over 248,000 sq. m, spread over five plants in India and one plant in South Korea.
The newly acquired plant will be used to make a new range of designer sanitaryware products in partnership with globally renowned design firms like DanelonMeroni - London and Foley Design – Bangalore.