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Simpolo Vitrified (P) Ltd. of Morbi entered into a joint venture with Italian ceramic tiles maker Emil Ceramica on Tuesday to set up a greenfield tiles manufacturing facility at Morbi with an annual capacity of approximately 3.5 million square metres at an investment of Rs 125 crore.
Sharing the details of the deal, Luca Majocchi, Chief Executive Officer (CEO), Emil Ceramica group, said, "The plant at Morbi will blend Italian design and Indian quality to cater to the expectations of Indian and global customers."
"Both companies will hold 50 per cent equity each in the joint venture, which would be named 'Simpolo Emil Ceramica (P) Ltd', and the total planned investment is about Rs 125 crore," said Majocchi.
The plant is expected to commence production by the end of 2016 and aims to achieve turnover of Rs 300 crore in its inaugural year, said, Jitendra Aghara, chairman and managing director, Simpolo Vitrified (P) Ltd.
Technical know-how, design and quality finishes would be provided by Emil Ceramica while Simpolo would leverage its expertise and strength for production, said Anil Beejawat, Group CEO, Simpolo.
Production in excess of 50 per cent, Majocchi said, would be shipped to Europe, United States, North America, South America, Australia and other Asian markets. The balance, he said, would be sold in the domestic market.
Beejawat added, "The realty market in India is scaling new high in terms of architectural innovations and designs but the fraternity is not able to execute dream projects the way it wants to due to lack of quality products. This joint venture aims to bridge this gap between expectations of realtors and the demands of Indian and global consumers."
Majocchi informed that future expansions would depend on the success of the joint venture.
"We agreed with Simpolo that if we are successful we are going to expand the plant. So, the initial investment in terms of land and building will be taken into account for potential expansion," said Majocchi.
He added, "The first phase of expansion would be within the same plant and if we plan to grow further, that time we will think of another plant."
Simpolo Group, set up in 1977, manufactures wall and floor tiles as well as sanitaryware with production facilities in Morbi. It has a turnover of Rs 500 crore with a pan-India presence in addition to exports to Germany, South America, Middle East and Africa.
Emil Ceramica Group is an Italian ceramic tiles manufacturer, operating since 1961. The company has manufacturing operations in Italy and Ukraine, and boasts of a turnover of Rs 15,000 crore.
