Somany: a commitment to quality and innovation

While waiting for the inauguration of the Somany Max plant in December, the Indian group expects a double-digit growth in volume and an improvement in margins in the current fiscal year.

Somany Ceramics, India’s second-largest ceramics group, reported consolidated revenues of US $303 million (Rs. 24.8 billion) for the fiscal year 2022-2023 (year ending 31/3/2023), an 18% year-on-year increase. Costs increased significantly (+20%), primarily due to the sharp rise in energy prices, exerting considerable pressure on margins. However, the group remained resilient and managed to navigate through the uncertainties thanks to the strategies adopted to support its growth.

With a production capacity of 73 million square metres, the group has mainly increased the production of GVT (glazed vitrified tiles) and PVT (polished vitrified tiles), focusing on more technical products and industrial tiles of higher thickness.

The expectations for the current year are positive, as MD and CEO Abhishek Somany confirms:

“We are very optimistic. The lower cost of gas will reduce our production and freight costs, making our ceramic tiles more competitive in the market. This is crucial for sustaining our market share, especially in the context of global competition. We are hoping for a double-digit growth in volume and an improvement in margins in the current fiscal year. We expect to achieve this goal through ongoing investments in capacity expansion and a greater presence in international markets while at the same time optimising our operations, enhancing efficiency and streamlining our processes. Moreover, as the overall economic situation improves, demand for construction materials like ceramic tiles is likely to recover. The Indian market remains sluggish, but forecasts point to a significant increase in real estate activity as early as next year, which will push up demand for tiles”.

Meanwhile, the new Somany Max factory in Morbi is expected to start operation by December 2023. In the first stage of production, it will focus on the production of sizes between 1200x1200 mm and 1200x2400 mm.

Read the interview published in Ceramic World Review no. 153/2023