Anjani Tiles to invest ₹120 cr in expansion of production capacity
The company with the manufacturing capacity of 3 million sq m per annum wants to add another 5 million sq metres capacity by 2025.
Anjani Tiles is planning to increase its production capacity with an investment of ₹120 crore as part of its brownfield expansion. “We are planning to add one more line at our existing plant at Gudur, Andhra Pradesh, which is expected to be ready over next two years,’‘ KV Vishnu Raju, Chairman, Anjani Vishnu Holdings Ltd, promoters of the company told businessline.
Incorporated in 2015, Anjani Tiles manufactures and sells tiles under the brand of Anjani Tek and has a manufacturing capacity of 3 million square metres per annum. “As of now, we are fully utilising the capacity and are present in the markets of Andhra Pradesh, Telangana, Tamil Nadu and Karnataka,’‘ Raju said.
The company wants to add another 5 million sq metres capacity per annum by 2025. There is huge potential for the tiles business. We can expand further in Telangana and Karnataka by leveraging our Anjani brand as of now. With the addition of the capacity, we will also reach markets in Kerala, Odisha and Chhattisgarh.’‘ he added.
“The company believes that there is huge scope of innovation in the tiles segments in terms of design and customisation. It is the first to introduce regional languages in the packaging of its tiles.”
On the industry scenario, Raju said the recent escalation in costs, mainly of fuel and coal, are major challenges for the industry along with the presence of large unorganised production.
According to industry estimates, the total size of the tiles market is in the range of ₹40,000 crore with over 60 per cent of them coming from the unorganised sector.
The promoters invested ₹85 crore so far in Anjani Tiles and had achieved breakeven.
– By Naga Sridhar (The Hindu Business Line)
Read the published article on The Hindu Business line