Kajaria seeking to spread its wings in Andhra Pradesh

Kajaria Ceramics Limited is an India-based company engaged in manufacturing and trading of ceramics, polished and glazed vitrified tiles. The Company offers ceramic wall and floor tiles, polished vitrified tiles, glazed vitrified tiles, and sanitary ware and faucets.

In spite of dullness in the construction sector, KCL is growing rapidly with net sales that grew by 129.5 per cent in the last 5 years at Rs.2186.89 crores in FY 2014-15 from Rs.953.25 crores in FY 2010-11. The net profit grew by 204.40 per cent in the last 5 years to Rs.270.33 crores in 2014-15 as opposed to Rs. 89.22 crores in 2010-11. This shows their good growth in volume of sales, decreasing financing cost and operational efficiency.

The company achieved this substantial good growth by branching off into vitrified tiles, with a great network of more than 1000 dealers, launching trendy designs and styles in tune with the changing tastes. The company management is expecting a 10 to 15 per cent increase in turnover in 2015-16

.The company has 8 manufacturing plants in India, with the 8th one starting its operation in Rajasthan from next month. KCL has the largest share in the Kerala market which is around 30 per cent and its net sales are growing rapidly. So, to cater to the need of southern regional companies it is starting its new plant in Andhra Pradesh which will be commissioned from 2017.

With this KCL also thinking of setting up a new manufacturing plant in eastern India to easily reach customers in the east & north-east region. With the growing market share, net sales, help from state governments and the Make in India campaign, this growth is achievable.

On 20th November, the share of KCL is trading at 920.60 with an increase of 4.86 per cent from its previous close.