Kajaria acquires majority stake in Vennar Ceramics

Delhi-based Kajaria Ceramics Limited (KCL) has formed a joint venture with Vennar Ceramics by acquiring 51 per cent stake in it.

Vennar, a subsidiary of Hyderabad-based Anjani Portland Cement, is setting up a plant at Kaikalur near Vijayawada in Krishna district, according to a press release here on Wednesday.

The acquisition will mark the entry of Kajaria in south India. The facility will have an annual capacity to produce 2.3 million square meters of high-end wall tiles

Kajaria has acquired the stake by way of subscribing to fresh equity share capital of the company for a sum of Rs 13.65 crore, the release said.

 

“This is the first acquisition by Kajaria in south India. Vennar is putting up a brand new plant which would start commercial production in June 2012. This will help Kajaria cater to the southern markets from this plant, enabling the company to reduce the transit time for the delivery of goods and to save on transportation cost,” Ashok Kajaria, chairman of Kajaria Ceramics, stated in the release.