As a part of its diversification strategy, Somany Ceramics Ltd is looking at setting up a greenfield manufacturing facility in Gujarat or Rajasthan for its chrome plate fittings business.
“We were already present in tiles and sanitary ware. CP fittings (sanitary fittings) will bring a natural synergy to our portfolio. Besides, there are only a handful of players in the organised market. Therefore, we are looking to bridge the gap between the organised and the unorganised (sectors). This is a highly labour-intensive business so we are still scouting for the right location,” Mr Anil K. Beejawat, President, Somany Ceramics Ltd, told Business Line .
The new facility will be set up with an estimated Rs 10 crore. Mr Beejawat said that a separate division will drive the business. “There is under-capacity in the sanitary fittings business. Also, consumer demand is very high as it is no longer a low-involvement product. Aesthetics and quality are driving up the market,” he added.
Mr Beejawat said the organised sector is estimated at Rs 3,500 crore and is growing at 15-20 per cent annually.
Somany's key markets will be the North-East and the South. “We will be leveraging on our distribution base of 2,000 dealers to penetrate Tier-2 and -3 cities,” he said, adding that the company is looking at revenue of Rs 120 crore from this vertical in three years.