Kajaria Ceramics buys majority stake in Jaxx Vitrified

Tiles maker Kajaria Ceramics (KCL) today said it has acquired majority stake in Gujarat- based Jaxx Vitrified for a total consideration of Rs 6.26 crore.

The company has acquired 51% stake in Jaxx Vitrified in an all cash deal for Rs 6.26 crore,  KCL said in a filing to the Bombay Stock Exchange (BSE).

The same translates into acquiring 2.32 million equity shares of Rs 10 each for Rs 27 per share, it added.

Commenting on the development, KCL Chairman Ashok Kajaria said: "Jaxx has a brand new plant which should start the commercial production next month. This will help Kajaria to reduce import dependence to cater to the western and southern markets to take logistic advantage."

 

Kajaria is the largest producer of ceramic, vitrified tiles in India and has an annual capacity of 30.60 million square metres across three plants.

On the other hand, Jaxx has an annual capacity to produce polished vitrified tiles of 3.10 million square metres per annum.

"The addition of which would take the total capacity of Kajaria Ceramics to 33.70 sq meters, including 5.40 million capacity of subsidiaries," the company said.

Shares of Kajaria Ceramics today closed at Rs 111.70 on the BSE, down 1.33% from its previous close.