Indian wall and floor tiles maker Simpolo Ceramics today said it plans to set up a a joint venture with Italy-based Emilceramica Group at Gujarat's ceramic hub of Morbi with an investment of Rs 125 crore.
Simpolo Ceramics Chairman and Managing Director Jitendra Aghara and Emilceramica CEO William Tioli signed an agreement to set up the plant at Morbi district in Gujarat, the company said.
"Simpolo Ceramics will set up a joint venture with the leading Italian tiles company Emilceramica group to start manufacturing facility at Morbi in Gujarat, having an annual capacity of 3.5 million square metres, with the investment of Rs 125 crores," Simpolo Group CEO Anil Bijawat told reporters.
The new plant is expected to start manufacturing by the end of year 2016, he said.
He said greenfield tile manufacturing plant would generate employment to about 400 people, adding that the joint venture would export 50 per cent of the production to Europe, United Stats of America (USA) and South American countries.
After analysing the Indian market for more than two and a half years, Emilceramica's CEO Luca Majochi said, the company has decided to provide "cost-effective" products, since the Indian market is price sensitive.
