Tuesday, May 10, 2022

Cera to invest Rs 200 crore in sanitaryware, faucetware expansion

 Vikram Somany, Chairman and Managing Director, Cera Sanitaryware

Ahmedabad-based Cera Sanitaryware Limited is set to extend its sanitaryware and faucetware producing limit in two stages for a capital consumption (capex) of almost Rs 200 crore.

The Board of Directors on Tuesday endorsed the capex of around Rs 197 crore for the organization's development plans including a greenfield sanitaryware plant and a brownfield faucetware unit. As of now, Cera Sanitaryware Ltd. has a sanitaryware limit of 2.5 million pieces for each annum (mppa) and faucetware limit of 3 mmpa. The organization informed trades that the current limit use is near 90-100 percent.

The extension plan incorporates a greenfield plant with an underlying limit of 1.2 mmpa in the main stage which can be additionally extended to another 1.2 mmpa in second stage, accordingly amassing to 2.4 mmpa. Then again, extra limit of faucetware in stage one will be 1.2 mmpa which further expandable to add up to 2.4 mmpa in second stage.

In the principal stage, while the greenfield development of sanitaryware will cost Rs 128 crore and require 24 to 30 months to finish, the brownfield faucetware extension at Rs 69 crore will require a year. Cera Sanitaryware Ltd will support the extension altogether through interior accumulations.

Discussing the reasoning behind the extension, the organization informed trades that it is focusing on not just increment portion of very good quality stock keeping units (SKUs) yet additionally to meet amount prerequisites for a growing business sector over the medium term. The organization is additionally hoping to relieve the gamble of creation interruption at a solitary area even as it hopes to accomplish ideal expense of creation by decreasing overheads....KNOW MORE

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