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Tile major Kajaria Ceramics Ltd has entered the sanitaryware and bath-fittings segment by tying up with European brand Vitra, owned by Eczacibasi of Turkey.
The 50:50 partnership is for five years and the joint venture is looking at possibilities of manufacturing in India.
“We are making our feasibility study and also looking at the possibility of acquiring an existing facility,” said Mr Husamettin Onanc, Executive Vice-President, Building Materials, Eczacibasi.
The new facility will most probably be in North India, said Mr Ashok Kajaria, Chairman and Managing Director, Kajaria Ceramics. Around 10 showrooms of Vitra-Kajaria will be set up this year, and the products will be sold through another 25 stores across the country. The market for sanitaryware and bath fittings is worth Rs 3,500 crore, of which 20 per cent belongs to the premium segment.
Kajaria Ceramics expects a turnover of Rs 1,000 crore this fiscal and Rs 30 crore is expected to come from the new venture. Previously, Kajaria used to source sanitaryware from China and Italy for retail purposes, but this will now be discontinued.
The announcement was made shortly after the third quarter results of the company were released.
The net profit for the quarter ended December 31, jumped 113 per cent to Rs 17.59 crore (Rs 8.27 crore). The net income of the company increased 85 per cent at Rs 253.66 crore (Rs 179.7 crore).
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