Japan-based Lixil Corporation, which has brands like Grohe and American Standard here, today announced plans to invest USD 65 million (Rs 415 crore) in its ceramics production unit at Andhra Pradesh.
The new plants would help the company to corner around 15 to 20 per cent market of the organised ceramic industry in next three to four years from the present 2 per cent.
"We are investing USD 65 million in this plant. It's an existing and functional facility and we are upgrading it further," LIXIL India country head Shubhajit Sen told PTI.
He further said: "In the second half of this year, we would start production in this facility."
The factory currently has a production capacity of one million units per year and is designed to upscale annual production to two million units in the future and provide employment to about 400 people.
"In the ceramic market, we have negligible presence both with Grohe and American Standard brand with 2 to 3 per cent market share. This ceramic products facility would start to bring strong business and we hope to get 15 to 20 per cent of the market share (organised ceramic industry) in next 3 to 4 years," Sen added.
This would be primarily driven by the local supply and Indian specific designs.
"Over a period of time we would also start designing and developing products specifically for the Indian market, which would help to capture a bigger part of the market," he said.
According to him, the total size of the organised ceramic industry is around Rs 4,500 crore in India.
Besides, catering to the Indian markets, the unit would also cater to the global supply chain network of Lixil.
"The move also strengthens our overall ceramics production capacity, enabling exports to key markets such as the US," said Lixil President and CEO Kinya Seto.
Grohe, presently had 50 per cent market share in the premium bathroom fitting segment, while American Standard is comparatively small and sells on more business markets.
Lixil has completed its acquisition of Sentini Sanitarywares, including its recently established contemporary sanitaryware plant.
This will be a multi-brand facility for LIXIL, with products from Grohe and American Standard being produced here.
Disclaimer: No Business Standard Journalist was involved in creation of this content
