Euro Ceramics to pump Rs 77 cr in sanitary ware mfg

New Delhi, Feb 5 (UNI) Diversifying its product portfolio, Euro Ceramics today said it will manufacture sanitary ware products at its plant in Bhachau in Kutch with an investment of Rs 77 crore.

For the purpose, the existing manufacturing facility at Bhachau will be extended by 11,000 metric tonnes. The commercial production of sanitary ware will start from October 2007.

To accumulate funds for its plans, the company is entering the capital market on February 7 to raise up to Rs 101 crore. The issue will close on February 13.

It will float 56.21 lakh equity shares of Rs 10 each for cash at a premium, to be decided through a 100 per cent book-building process.

The company has signed a contract with Sacmi Hong Kong Ltd, a part of Italy-based Sacmi group, for the supply of plant and machinery.

Besides the above plans, ''the company is in the midst of setting up a project for manufacturing calcareous tiles, which will cater to the requirements of upper-end segment of the tiles market and will compete with the Italian marble,'' Director Paresh Shah told reporters here.

This project will have an initial capacity of 45,000 metric tonnes per annum and will be funded through our internal accruals and bank debt, he added.

''We are having a chain of 12 distributors and 7,000 retailers and we are engaged in direct marketing to large corporates and institutional buyers,'' Mr Shah added.

The company is also trading in wall tiles through a 100 per cent subsidiary, he said adding that 7-8 per cent revenue is expected from exports.

The total consolidated income of the company for FY06 was Rs 138.16 crore while its net profit was Rs 20.31 crore.

For the first half of FY07 ended September 2006, the company earned a consolidated income of Rs 91.73 crore and a net profit of Rs 13.12 crore.

Euro Ceramics is currently engaged in the manufacturing of vitrified ceramic tiles and aluminium extruded sections at its manufacturing facilities located at Bhachau in Kutch.

UNI