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H&R implements Rs 400 crore capex

The overall investments in the bathroom product & accessories business have crossed Rs 40 crores

T E Narasimhan  |  Chennai 

H&R Johnson (India) has implemented a capex of Rs 400 crore to build capabilities across its business verticals.

The company has already invested Rs 225 crore to increase the vitrified manufacturing capacity at its Silica JV unit in Andhra Pradesh. It has set-up its second bathroom product manufacturing unit in J&K.

With this unit, the overall investments in the bathroom product & accessories business have crossed Rs 40 crores.

The company also invested nearly Rs 50 crore in setting up its new unit to manufacture engineered marble & quartz. Post these investments, at peak capacity utilisation the Silica JV unit will potentially contribute nearly Rs 300 crore; the two bathroom products units will jointly contribute Rs 100 crore and the Engineered Marble & Quartz business will add Rs 150 crore to the company’s overall topline.

The funding of this capex is made through a combination of debt and internal accruals, according to company's release.

Meanwhile the company is planning to ramp-up its retail footprint in Tamil Nadu by establishing consumer experience zones across the State.

These consumer experience zones will take the form of shop-in-shop retail with three key modules branded as Johnson Arena, Johnson Class and Johnson Xclusiv.

The company is setting up these consumer experience zones across the country with plans to set-up more than 300 experience zones over the next two to three years.

Out of these nearly 150 will be set-up in South India. Tamil Nadu will account for nearly half of the planned stores in South. H & R Johnson (India) focuses on driving penetration in Tier 2 & 3 markets through its retail expansion, said B Jagannathan, Senior General Manager – South 2 & 3.

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First Published: Fri, November 02 2012. 12:57 IST