Regency Ceramics chalks out ₹100-cr. plan to revive Yanam unit

Published - September 22, 2023 07:55 pm IST - CHENNAI

 Narala Satyendra Prasad

Narala Satyendra Prasad

Tile manufacturer Regency Ceramics Ltd. has chalked out a ₹100-crore plan to revive its Yanam manufacturing unit which was closed due to massive industrial riots in 2012, said Executive Director Narala Satyendra Prasad.

“We have initiated the ground work and the first line will be up and running by December 2023 and the remaining three lines in phases by FY25,” he said during an interaction.

According to Mr. Prasad, the first three lines will have an installed production capacity of 7,000 sq.mt. each, per day, and the fourth line with 4,000 sq.mt. per day.

RCL needed about ₹100 crore to import, refurbish and/or replace certain plant and machinery. The promoters would chip in ₹20-25 crore and rest would be met through borrowings and term loans, he added.

According to the plan, RCL would start making 35-40 types of stock keeping units (SKUs) using the first line which suffered lesser damage during the industrial riots. This will be scaled up to 250 SKUs when the entire lines are up and running.

Recalling the riots in 2012, Mr. Prasad said that the company had units at Yanam (40,000 sq.mt.) and Karaikal (18,000 sq.mt.). The riots happened due to political rivalry, claiming two lives, while stock and equipment worth ₹157 crore got damaged. Later, the Karaikal unit, belonging to a subsidiary, was hived off to pay debts, he added.

“We lost almost a decade due to the industrial riots and undue delay in getting arbitration award. At that time, we had a market share of 12% and did some exports,” he said.

Mr. Prasad said that RCL had initiated talks to resume exports to Africa and West Asian countries. By FY24, the firm plans to appoint 100 dealers in Tamil Nadu, Andhra Pradesh and Telangana and open 10 experience centres.

“We have an established brand, asset and market opportunity. The market is expected to grow at a CAGR of 7-8% in 4-5 years. With the introduction of new products, we hope to do well and capture a small portion of it. If all goes well, we can touch ₹100 crore in revenue by FY26,” he said.

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