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Kajaria-Vennar Ceramic Unit to step up capacity

January 7, 2013

The Kajaria Ceramics Ltd – Vennar Ceramics joint venture to manufacture ceramic tiles, is all set to expand its capacity this year to 10,000 sq. mts. a day. At present, the capacity is 6,500 sq. mts. a day (about 2 million sq. mts. a year). The joint venture with Kajaria Ceramics holding 51 per cent equity has a manufacturing unit at Kaikalur, close to Vijayawada in Andhra Pradesh.

The joint venture formed with Vennar, a subsidiary of Anjani Portland Cement in April 2012, marked the entry of Kajaria into South India with this unit manufacturing high-end wall tiles. Kajaria invested up to Rs 13.65 crore towards fresh equity shares. The plant capacity is being expanded to around 3 million sq. mts. a year with more investment.

In addition to wall tiles, digital printing of tiles has also been taken up, said Vishnu Raju, Managing Director, Anjani Portland Cement. Vennar Ceramics was in the process of putting up the new plant, which went into commercial production in June last year. The company also has a captive power unit and gas linkage. The entry of Kajaria has accelerated the growth.

For Kajaria’s the JV will help cater to the southern markets by reducing the transit time for the delivery of goods and savings in transportation costs. For Vennar, the partnership will help in building the brand and marketing it easier. At present, Kajaria Ceramics is able to meet its southern demand from this JV manufacturing unit. The expansion will help it find and reach newer markets.

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