Last Updated :
19 March 2010 at 11:15 IST
Cera eyes for 20% growth for FY10, stocks flat
AHMEDABAD (Commodity Online): Gujarat-based sanitaryware manufacturer, Cera Sanitaryware Ltd (BOM:532443) is looking at 20-22% growth in the current fiscal higher than the industry average, which is about 12% on the back of increased demand from upbeat housing sector.
In a meeting held on Thursday, 18 March 2010, the company board has approved the proposal to increase the production capacity by 35% to 2.7million pieces per annum from the existing 2 million pieces. “We are planning to increase our manufacturing capacity for sanitaryware by 35% with an investment of Rs.35 crore. The capacity expansion will entail installation of the latest techonolgy high-productivity pressure casting machine and an additional kiln,” said Atul Snghvi, Sr VP – marketing.
Get a bigger political picture to help you investApart from the expansion in sanetaryware production, the company is also looking at setting up manufacturing facility for CP fittings, with an initial production capacity of 0.5 million units. “We will set up a manufacturing unit for CP fittings with an estimated cost of Rs.25 crore. The unit will be installed at our existing manufacturing facility located in Kadi,” Sanghvi told Commodity Online.
The company is looking to end the current financial year with a robust growth of about 20-22%, which is much above the industry average of 12-15%. According to company officials, the company is expected to post the total turnover of Rs.200 crore in 2009-10. With new capacity addition, the company is poised to record higher growth in the next fiscal. “We expect to grow at about 30-35% next year with increased production capacity and expanded market base,” said the company official.
Cera, which holds about 20% market share in the sanitaryware industry, traded with marginal gains on the Bombay Stock Exchange (BSE) on Friday, March 19, 2010. The company stocks opened at Rs.261.95 with marginal gains from the previous close. However, the stock has gained as much as 8.38% in past one month. Meanwhile, the key benchmark index, Sensex remained flat at 17,550.05 points in the opening trades on Friday, March 19, 2010.
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