Nitco Tiles Ltd, the third largest tiles manufacturer in India, has entered into a second contract manufacturing arrangement (CMA) with Foshan Lungo Ceramics, a part of the world leader New Zhong Yuan (NZY). | |
| Under this manufacturing agreement, Nitco has agreed to a minimum offtake of 30 lakh square metres of vitrified tiles in the first 12 months, 45 lakh square metres in the next 12 months and 60 lakh square metres thereafter from Fushan Lungo Ceramics. |
| |
| Under the first CMA, entered in 2004, Nitco proposed to lift 15 lakh square metres of vitrified tiles annually. Interestingly, by 2006, the offtake had reached 35 lakh square metres. |
| |
| As the demand for tiles is rising around 30 per cent annually in India, Nitco Tiles geared up with this agreement to supply an adequate quantity of tiles for higher capitalisation. |
| |
| Thus, with the latest CMA, the company is assured of uninterrupted supplies of vitrified tiles to meet the rising demand. And as in the case of other Chinese products, the cost of China's vitrified tiles is among the cheapest in world. |
| |
| Interestingly, the CMA has also ensured that there will be no upward price revision during the first two years of the CMA, thereby; safeguarding the company from any fluctuations in supply costs. |
| |
|
| |
