Tile maker Somany Ceramics has said that it has acquired a 26% stake in Commander Vitrified (CVPL) for a realisation of Rs 3.25 crore. Consequent upon this deal, Somany shall have full access to Gujarat-based CVPL's manufacturing capacity of 2.65 million sqmts per annum of polished and glazed vitrified tiles, the company said in a statement.
As per the MoU, Somany has an option to further increase the stake to 51% in future, it said. "This strategic investment presents a lot of opportunity for Somany in the current landscape of the Indian ceramic industry. This move is a step towards realising Somany's growth vision," Somany Ceramics joint managing director Abhishek Somany said.
Production at CVPL's state-of-the-art Italian plant in Morbi, Gujarat commenced at the end of May and will be dedicated towards manufacturing of large format tiles. "Value-added large format tiles have a huge demand globally. We will drive an additional annualised revenue of about Rs 100 crore from the CVPL plant” said the company.
“Continued investment of this nature exemplifies why Gujarat remains the most exciting ceramics market in Asia, and possibly, globally” says Derek Burston, exhibition director for Indian Ceramics 2013.
“This is why we have seen our annual event, which next year will be in its 8th year, grow so fast. With over 5000 visitors recorded at this year’s event in March, and already some 68% of the available space reserved for the 2013 show, it is clear that Indian Ceramics – the only exhibition with the extensive media support of Asian Ceramics magazine – remains the key meeting point for the entire industry; not just in India, but Asia-wide” he concludes.
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