Asian Granito to invest Rs 2,000-mn

Coimbatore: Asian Granito India Ltd, manufacturer of vitrified tiles, has planned an additional investment of nearly Rs 200 crore in the next two to three years to double the capacity of wall tile unit and marble project and for a new plant for double feeder tile.

The company’s board of directors, at its meeting on April 21, decided to take up an agglomerated marble project at its existing plant site with 2,500 sq. m a day (45,000 m.t. a year) capacity after the completion of the wall tile project. The total project cost with net working capital requirement would be around Rs 55 crore.

The company expects the fresh investment to bring an additional revenue of Rs 140 crore (at 80 per cent capacity utilisation) and improve the bottomline by Rs 18-20 crore a year. The commercial production from this would commence in the third quarter of 2008-09.

The company, in a communication to the NSE, stated that it is having plans to double the capacity of wall tile unit, put up a new plant for double feeder tile, to double the capacity of marble project and to take over units in the line of products in the next two to three years requiring an additional investment of around Rs 200 crore.

It would meet its long-term requirements from internal accruals and term loan from financial institutions and the company hopes this would help push the turnover to more than Rs 1,000 crore in the coming years.