Madhusudan Industries Plans Unit In Eastern India

Vikram Somany, chairman of the company, said that the unit will be the most modern sanitaryware producing unit in India and would be based on either propane or liquefied petroleum gas (LPG).

"We will be getting the most modern technology of the world so that it can compete with anyone in India. Moreover, it would help us to reduce our transportation cost and thereby we can increase our market share in eastern India," Somany said.

Cost of the new plant would be around Rs 50 crore and Madhusudan Industries, a company listed on the Calcutta, Mumbai and Ahmedabad exchanges, is open to joint ventures and collaborations.

 

"We may get the technology from a German company but we have not finalised yet. We may work out some sort of collaboration or enter into a joint venture with some partner," Somany added.

In 1999-2000, the company registered a turnover of Rs 134.12 crore, down from Rs 175.59 crore in the previous year. Profit after tax also dropped to Rs 1.51 crore from Rs 2.77 crore.

Madhusudan is also diversifying into PVC-based sanitaryware and bathroom decorative items like cisterns, door handles and other fittings. Somany said that the plastic products are fast replacing ceramics because of its cost advantage.

"Mostly it will be trading. Other ceramic sanitaryware makers have also gone for it. Once, we get a grip of the market, we can think of our own plant," Somany said.

Despite being a major player in the ceramic sanitaryware, Madhusudan Industries does not have any interest in ceramic tiles market. About five years back, it did set up a tiles manufacturing subsidiary at Baroda and it was named Madhusudan Ceramics Industries.

During 1998-99, the company sold its stake to Sun Earth Ceramics of Mumbai. Somany clarified that they have no further interest in the ceramic tiles market because it is "too competitive with too many players".

With the modernisation of the Kadi unit, the company has increased its capacity to 15,000 tonne per annum. The unit has recently been awarded ISO 14001 certificate from KPMG.

"After becoming an environment-friendly company, we are making a foray into the American and European markets. Moreover, we are constantly increasing our product basket with designs and colours," Somany added.