Somany Ceramics is acquiring 26% stake in Gujarat based Commander Vitrified Private Limited for R3.25Cr.

The company has signed MOU with Commander Vitrified to acquire 26% stake in the company with an option to further increase the same up to 51%.

This deal will give complete access to Somany Ceramics to procure and sell the entire quantity of vitrified tiles to be manufactured by CVPL.

CVPL is at an advanced stage of setting up a new plant to manufacture about 2.65 Mn sqmt of vitrified tiles (polished and glazed) p.a at Morbi (Gujarat). The plant is expected to commence production by the end of May 2012.

Delhi based Somany Ceramics was earlier known as Somany Pilkington's Limited. It manufactures ceramic tiles and allied products. It also has 40 retail showrooms. The products are exported to Middle East, Sri Lanka, Mauritius, Australia, UK, Canada, and Africa.

The company markets its tiles under the established brand names like 'Somany', 'Durastone', 'Duragress', 'VC Shield', 'Somany Express' etc. The company is also present in the sanitary ware segment through outsourcing from domestic / global markets under the brand 'Acquaware'.

Last year, it acquired 26% stake in Vintage Tiles Private Limited, which was setting up a new plant to manufacture about 7500 square meters of polished vitrified tiles per day at Morbi.

Somany ceramics on BSE

The company's current manufacturing capacity at the two existing plants at Kadi and Kassar (Haryana) is 20 mn sq.m an annum. Besides, it also outsources 8-9 mn sq.m of production of lower segment products to Morbi-based manufacturers in Gujarat.

Performance of Somany Ceramics

Recently, Kajaria Ceramics Limited has acquired 51% stake in Hyderabad based Vennar Ceramics Limited for R13.65Cr, while in Jan it acquired 51% stake in Gujarat based Jaxx Vitrified Private Limited for R6.26Cr. Last Feb, it acquired 51% stake in Gujarat-based Soriso Ceramic Private Limited for R5.6Cr in an all-cash deal.

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