Somany signs up to acquire 26% equity stake in VTPL

AHMEDABAD: Tiles and sanitaryware manufacturer Somany Ceramics has picked up 26% stake in Vintage Tiles Private Limited for an undisclosed amount, a Bombay Stock Exchange posting said. Somany holds 8% share in the Rs 15000 crore Indian tile and sanitaryware market.

The stock rose to Rs 47.80 on Thursday from Wednesday's close of Rs 45.45 and was trading at Rs 46.90.

VTPL is at an advanced stage of setting up a new plant to manufacture about 7500 square meters of polished vitrified tiles per day at Morbi (Gujarat). The stake shall allow the company to market the entire quantity of the polished vitrified tiles to be manufactured by VTPL, the company told BSE.

Somany's manufacturing capacity at the two existing plants at Kadi and Kassar (Haryana) is 18 million sq.m an annum. Besides, it also outsources 8-9 million sq.m of production of lower segment products to Morbi-based manufacturers in Gujarat.

Meanwhile, the company has bought additional land near their existing plant at Kadi (Gujarat) where it will begin work on doubling up the capacity which is currently at 15,000 sq mt per day at an investment of Rs 60-65 crore.