Rupees 200 crore war chest for expansion of its tile making capacity has been readied by H&R Johnson (India).
H&R Johnson (India) has readied a rupees 200 crore war chest for expansion of its tile making capacity.
The company is planning to double the capacity of its vitrified tile making unit in Rajkot and floor tile manufacturing unit at Vijaywada at an investment of rupees 40 crore and rupees 50 crore respectively. Also, a new plant in Rajasthan would be set up at an investment of rupees 110 crore.
H&R Johnson has been on a modernization drive to upgrade technology and machinery at these units. New machines were installed for making of top-end vitrified tiles and a high-resolution design lab was also set up at the Rajkot unit recently.
The company recorded a 36 per cent rise in sales from rupees 542 crore to rupees 740 crore last financial year.
However, the unlisted company refused to disclose the net profit growth for 2005-06.
In the period under consideration, sales volume grew by 45 per cent from 18 million square meters to 26.18 square meters.
The company is looking to achieve turnover of around rupees 1,000 crore by March 2007. During the last financial year, H&R Johnson had tapped the north Indian markets which fetched a sales volume growth of approximately 120 per cent, the company sources said.
The company has planned a marketing blitz of approximately rupees 50 crore for the current financial year as part of its growth plans.
The company's new plant in Rajasthan is expected to become operational this year. With the phenomenal growth in 2005-06, the market share of H&R Johnson (India) has gone up from 24 per cent to 30 per cent, the company sources said.
The company is targeting an overall market share of 35 per cent across India by March 2007, the sources confirmed.