Tilemaker Asian Granito forays into sanitaryware; eyes Rs 100 cr turnover

In a bid to become a complete bathroom solutions player, leading tile maker Asian Granito India Limited (AGL) has now forayed into sanitaryware with around 160 stock keeping units (SKUs) in products including wash basins, water closets (WC), and urinals, among others. 

At an investment of Rs 8 crore, AGIL has adopted an asset and capital light strategy by opting for the outsourcing model for its initial foray into sanitaryware. The company expects to see a commercial launch of 'AGL Sanitaryware' by June 2019 across India.

Being launched in the mid and mid premium segment under the brand name of AGL, the company's sanitaryware business is expected to garner a revenue of Rs 80-100 crore in the next 4-5 years, said Kamlesh Patel, CMD, Asian Granito India Ltd. 

"Expansion in the Sanitaryware is in line with company's growth strategy to focus on Asset light and Capital light business model. In line with our strategy, we are venturing in the sanitaryware with 'Outsourcing Model'- wherein we will sourcing from domestic markets as well as import from Europe and China in the first phase," said Patel, while adding that the company would be setting up its own manufacturing facilities in the near future. 

In order to become a complete bathroom solutions player, Asian Granito is also planning to foray into faucets in near future.

The company is banking upon its existing tiles marketing and distribution network for sanitaryware, with AGL already hosting over 6,000 touch points with dealer and sub-dealer network, 291 exclusive AGL Tiles showrooms and 13 company-owned display centres across India. AGL is in the process of appointing 30 exclusive distributors, 100 dealers and around 200-250 sub-dealers solely for sanitaryware.

"Asian Granito India Ltd today is ranked amongst top 3 listed ceramic tiles companies in India and we would aim for a similar scale in the Sanitaryware business in coming years. We are entering sanitaryware with 160 SKUs in wash basins, water closets (WC), and urinals, among others and expand the product range gradually," said Mukesh Patel, Managing Director, Asian Granito India Ltd. 

Sanitaryware industry in India is estimated at around Rs. 4,500 crores and growing at around 10-12 per cent annually. The Morbi cluster in Gujarat accounts for about 65-70 per cent of India’s tiles and sanitaryware products in volume terms, with more than 800 factories in the region. Of these, 60 per cent are organised, while 40 per cent are unorganised.

As one of the largest ceramic companies in the country, AGL already offers a wide range of products including, ceramic floor, digital wall, vitrified, parking, porcelain, glazed vitrified, outdoor, natural marble, composite marble and quartz, among others.