India’s leading tiles company Asian Granito India (AGIL) recently completed a major expansion at its subsidiary Crystal Ceramics Industries by adding a brownfield expansion of 12,000 sq m per day in a new production line of glazed vitrified tiles at its Mehsana plant, Gujarat. With Crystal Ceramics Industries’ investment of Rs25 crore for the expansion, the total capacity of the company will increase to 36,000 sq m per day. According to Kamlesh Patel, Chairman and Managing Director, AGIL, the strategic brownfield expansion had been planned keeping in mind low cost natural gas benefit at Crystal Ceramics, which would help the company to further reduce its manufacturing cost.
Additional capacity of 12,000 sq m per day is expected to add an incremental sale of nearly Rs70-75 crore per annum in Crystal Ceramics Industries and AGIL’s consolidated turnover. For its domestic and export markets, Crystal Ceramics Industries will be manufacturing large format of 600 X 1200 mm glazed vitrified tiles. “With this capacity expansion, AGIL on a consolidated basis will further improve its market share in the domestic and export markets. The company has a good presence in rural and Tier-II cities. We will continue to focus on creating value-based products for the middle class that has been crucial for the growth of the company,” added Patel.
Crystal Ceramics Industries had reported a turnover of Rs184.45 crore in FY 21. AGIL holds a 70 per cent equity stake on Crystal Ceramics Industries. For FY 21, the company reported a net profit of Rs57.23 crore on consolidated basis, with a year-on-year growth of 36 per cent. Net sales for FY 21 was reported at Rs1,292 crore, with a year-on-year growth of 6 per cent, while EBITDA was reported at Rs135.95 crore with 16 per cent year-on-year growth. Its EBITDA margin has improved with 91 basis points to 10.5 per cent in FY 21, while the net profit margin has improved by 100 basis points to 4.4 per cent.
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