Asian Granito (India) Limited, a modern vitrified manufacturing unit in Gujarat has begun commercial production of its Rs 48.7 crores wall tiles project, for which the company raised funds through an Initial Public Offer in July last year. The company has introduced biggest size of wall tiles of 300mm x 900mm for the first time in India.

The start of commercial production is in line with the January 2008 deadline indicated by the company at the time of the share issue. The new unit, with a manufacturing capacity of 50,000 tonnes per annum is located at Dalpur Village in Himmatnagar next to its existing unit where it produces vitrified tiles.

Ceramic wall tiles are used in decorating both interiors and exteriors of buildings. In India the use of ceramic tiles has till now been limited. But the trend is changing rapidly and they are now used extensively in the interiors of buildings as they are cost effective and also provide an attractive outlook.

Apart from implementing the wall tile project, the company has also expanded the production capacity of vitrified tiles from 117500 tonnes per year 134300 tonnes annually.

Globally with a 20% annual growth rate, vitrified tiles is the fastest moving segment of the ceramic tile industry accounting for close to 10% of the overall production across the old. In India too vitrified tiles are emerging as the next generating of flooring material.

The Indian ceramic industry is almost 100 years old and is growing at the rate of 12 to 15% a year. Currently, there are 33 units in the organized sector with an installed capacity of 85.15 million tonne (MT).

India is ranked 5th in the world in terms of production and consumption of ceramic tiles. General economic growth, growth in housing, construction and retail outlet sector, rise in income levels, replacement demand for tiles are some of the key factors spurring the growth of the industry. Lower cost of production, reduction in the cost of raw material, decrease in the cost of fuel due to change in the fuel, good potential for exports in addition to government support have helped in making tiles more affordable.

By offering a complete spectrum of tiles, focus on export, product innovation & expanding sales & distribution network, AGIL caters to the construction industry’s needs for residential & commercial use. Company’s product range includes glazed, unglazed, rustic, matte, homogenous & non-homogenous body, tiles manufactured through water jet cutting, tailor-made designs or customized according to the client requirements.

AGIL started their operations in October 2003 by setting up a new manufacturing unit for vitrified tiles with a capacity of 4,000 sq mtrs per day. Its distribution network includes more than 250 dealers and distributors as well as more than 3,000 business associates

Mr. Kamlesh Patel, chairman and Mr. Hasmukh Patel, managing director have successfully steered the company on the path of growth since inception. In keeping with its commitment to quality and innovation, the company has installed the state of the art quality systems and has been certified as an ISO – 9001:200 unit.

Company’s six-man research and development team focuses on producing new designs & concepts for tiles. In fiscal 2007 the team introduced approximately 20 new designs in the vitrified tiles industry and approximately 35 new designs in the ceramic tiles industry. AGIL is well equipped with modern technology at their vitrified tiles plant and ceramic tiles plant with Management Information Systems (MIS) tools installed for running their operations at optimal efficiency.

The company has identified a group of geographical destinations where they believe that the demand for their products will increase substantially, such as the U.S, which have traditionally been large importers of ceramic tiles.

Q3 Performance

During the quarter Company was in the process of setting up the plant for manufacturing of wall tiles. However the same is complete in all respect now and the company has finally successfully commenced the commercial production of wall tiles w.e.f 15th January, 2008 with a capacity of 9300 square meter per day. Thus the company has first time in India has successfully launched the biggest size of Wall Tiles of size 300 mm x 900 mm.

Further the company has also successfully commenced commercial production of enhanced capacity of vitrified tiles by 2000 sq. mtrs per day.

Although in the absence of commencement of enhancement in capacities as mentioned aforesaid, our consolidated sales have increased to Rs.16564.30 Lacs during the nine months ended December 31, 2007 as compared to Rs.13776.63 Lacs during the corresponding quarters showing a rise of 20.23%. Further the net profit has increased from Rs.1620.68 Lacs to Rs.2247.25 Lacs during the said period showing a rise of 38.66%. The main contributory to increase in profits has been the better EBDITA margin. Our EBDITA during the said period has increased from Rs.2696.45 Lacs to Rs.3823.60 Lacs showing a rise of 41.80%.

Company’s net profit margin has improved from 11.76 % to 13.57 % during the current year while the EBDITA margin has improved 19.57% to 23.08 % during the said period. The main reasons for the improvement in EBDITA level is company’s emphasis on the sale of premium product, increased demand of our product, continuous efforts of our technical team to reduce the cost of production.

Sourced From: Sobhagya Advertising Service

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