To cater to the growing needs of the small and medium enterprise segment
Ceramic tile maker H&R Johnson (India) on Wednesday announced the expansion of its industrial tile manufacturing plant in Dewas, Madhya Pradesh, to cater to the growing needs of the small and medium enterprise (SME) segment.
Stating that the company’s industrial tile capacity was now over four million sq. m. annually, Ravi Aravamuthan, General Manager, H&R Johnson (India), said the investment on the expansion was Rs.400 crore. Post the expansion, the company’s overall installed capacity for ceramic tiles crossed 54 million sq. m. per annum. It had also bought land for setting up its tenth tile manufacturing plant in Durgapur, West Bengal.
The company, which now has a 50 per cent share in the Rs.1,260-crore organised industrial tile market, he said, would engage with the SMEs in a much bigger way. On the reasons behind this decision, he said it was on account of the business potential offered by the SMEs. “They will provide volumes… greater acceleration to industrial [tile] business,” Mr. Aravamuthan said, adding the expansion would help the company address capacity constraints. For most SME clients, the key challenges were service, faster turnaround time, competitive pricing and ease of maintenance.
A release from the company said that once the Dewas unit reached peak production with the new capacities, it would have the potential to generate over Rs.100 crore revenues annually.
Mr. Aravamuthan said towards reaching out to more SME customers, the company would be organising seminars through industry associations to highlight the benefits of using Johnson Endura industrial tiles.