H&R Johnson India invests in production capacity

Jul 10, 2006

10/07/06 - H&R Johnson India, the leading Indian ceramic tile manufacturer, is completing its expansion programme at two of its factories located in Rajkot and Vijaywada involving investments of 40 Crore Rs (6.8 million euro) and 50 Crore Rs (8.5 million euro) respectively.
At the Rajkot facility, production capacity is expected to increase in July from the current 5,000 sq.m/day to 12,000 sq.m/day, allowing for an annual turnover of 200 Crore Rs (more than 34 million euro).
At the end of January 2007, the production capacity installed at Vijaywada will increase from 12,500 to 25,000 sq.m/day.

Start-up work on the new factory in Rajastan, the group's first facility in the north of the country, is also at an advanced stage. The facility cost 110 Crore Rs (18.7 million euro) and should have a production capacity of 25,000 sq.m/day. The work is scheduled for completion in December.
The investments are part of the expansion programme launched by the Indian group some time ago and are expected to make the group the first Indian ceramic producer to exceed a turnover of 1,000 Crore Rs (170 million euro) during the next Indian tax year (March 2007) and to reach a 35% share of the domestic market.
The Group has closed fiscal 2005-06 with a 36% increase in turnover to 740 Crore Rs (126 million euro). Sales have risen by 45% in volume from 18 million to 26.18 million sq.m, corresponding to an increase in market share from 24% to 30%.