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| Somany ties up with Italian firm to sell premium tiles |
| Press Trust of India / New Delhi Jan 31, 2012, 17:18 IST |
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Tiles maker Somany Ceramics today said it has entered into an agreement with Italy's Fiandre Group for marketing and distribution of the latter's Active range of tiles in India.
Under the agreement, Somany will start selling the premium tiles which are priced at Rs 350-450 per sq ft at its stores in all major cities, including Delhi, Kolkata, Ahmedabad, Mumbai, Hyderabad, Chennai, Bangalore, Ludhiana, Jaipur and Cochin among others in next ten days.
"We are looking at a target between half a million to one million euros of sales for the Active tiles in a year," Somany Ceramics Joint Managing Director Abhishek Somany told reporters here.
On entering the pact, Fiandre Group R&D Head Valentino Capucci said: "It (Somany) is one of the very few companies who has a perfect structure and balance of capabilities to introduce the Active range in the Indian market."
The partnership will try to leverage on the strengths of the two firms, he added.
"We are bringing our international brands, expertise in ceramics, and innovation on products, while Somany Ceramics is bringing their strengths of strong brand presence and robust distribution network in India," Capucci said.
Somany Ceramics expects to touch revenues of Rs 1,000 crore for this financial year and is aiming at a 25% growth in the next financial year.
"We are looking at a growth of 25% in the next fiscal. The growth will be based on acquisitions, increase in volumes and enhancing our marketing network," Somany said.
He said the company is scouting for a few acquisitions in Gujarat area to enhance capacity.
The acquisitions could be in wall tiles or floor tiles, Somany added without sharing the details such as the expected valuation of the deals.
"To drive the growth we will double our showrooms from the present 65. The biggest drivers will be tier II towns," Somany said.
Shares of Somany Ceramics today closed up 5.03% on the BSE from at Rs 38.60 apiece.
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