Cera Sanitaryware is considering to expand existing sanitary ware capacity from 2 million to 2.7 million pieces at its plant at Kadi, Gujarat. The approximate cost of this expansion is estimated at Rs 40 crore.
Meanwhile, Cera informed the Bombay Stock Exchange that the board has recommended dividend of Rs 2.50 (50 per cent) per fully paid-up share of Rs 5 each, at a meeting held on July 16. It has also recommended bonus shares in the proportion of 1:1 — one bonus share (of Rs 5 each) for every existing one fully paid-up share held by members as on record date to be determined by the board.
Faucetsware plant of the company will be operational by September 2010. It is actively considering doubling the production capacity from 2,500 pieces to 5,000 pieces per day at Kadi. The cost of this capacity increase is likely at Rs 18 crore. Cera is also planning construction of a new fire clay plant entailing production of large wash basin. The approximate cost of this plant is Rs 3 crore.
Cera is also planning to set up a new research and development centre and a display centre, costing approximately Rs 1 crore.
It is exploring the possibility of registration of CERA brand or any other new brand for business development in Europe. The Company may also consider acquisition of the existing brand or any existing company in Europe, depending on the European market conditions.