Varmora Granito lines up Rs 100 crore for capacity expansion

Aims to double turnover to Rs 400 crore this fiscal

Morbi-based Varmora Granito Private Ltd has lined up an investment of Rs 100 crore with an eye to double its yearly turnover to over Rs 400 crore by end of March 2011.

The company will invest close to Rs 60 crore in raising its production capacity from 40000 sq meter per day to 85000 sq meter.

"We have has commenced production of digitally printed ceramic wall tiles. We would be the first Indian company to adopt digital printing technology in ceramic industry. This year the company is targeting a turnover of Rs 400-425 crore as compared to Rs 220 crore last year," Bhavesh Varmora, Managing Director of Varmora Granito told Business Standard.

 

For technology upgradation, the company has collaborated with Vidres and Cretaprint for printing and designing respectively. Both these companies are based in Italy.

Talking about expansion plans Varmora said, "The company is in the process of investing Rs 40 crore for technology up-gradation. We would further invest Rs 60 crore to ramp up production capacity by end of this fiscal," according to Varmora.

The company's exports contribute 15 per cent of its overall turnover and Varmora is aiming to make inroads into Northern European countries with an aim to double its exports share to 30 per cent. To further strengthen its domestic market, Varmora is aiming to open display centres in metro cities starting with Mumbai and Delhi.

About the ceramic industry, Varmora said despite being an unorganised industry with only 40 per cent of it organised, the industry is posing a good growth of 25 per cent year-on-year.