Somany Ceramics, 50 years as an Indian market leader
The company expects to return to CAGR of 12-13% over the next 3-4 years and to increase profitability through capacity expansion for glazed vitrified tiles and a greater retail footprint.
Founded in 1969, Somany Ceramics Limited is India’s second largest tile manufacturer. The company has its headquarters in Noida (Uttar Pradesh) and has a production capacity of 62 million sq.m/year at the two manufacturing units in Kadi (Gujarat) and Kassar (Haryana) – both are are certified to ISO 14001 and OHSAS 18001 standards - and a further seven subsidiary and associate plants and arrangements with other manufacturers.
Somany Ceramics also operates in the bathroom accessories and tile laying solutions sectors and has focused on innovation and technology to develop a complete range of home décor products. Today, Somany is one of the most recognised brands in the Indian market, present in over 15,000 touch points across the country, including 350 franchise managed showrooms and 20 state-of-the-art experience centres located in the largest cities.
In the financial year ending 31 March 2019, revenue remained virtually stable at 2017-2018 levels (at about 214.6 million euros. “Despite this, we expect to return to CAGR of 12-13% over the next 3-4 years”, Managing Director Abhishek Somany stated. “The big picture is that we want to become more profitable. Along with revenue growth, we also want to increase our margins by 300-400 basis points, which we plan to achieve through capacity expansion for glazed vitrified tiles (up to 30%) and a greater retail footprint (5%).” he added.
Exports, mainly to Africa, Middle East, United Kingdom and Russia, are still representing about 4-5% of total turnover, but they are increasing, also supported by the presence of the company at international exhibitions like the Cersaie in Bologna, Italy. “The way our international business is growing we should certainly double exports sales in the next 5 years”, Abhishek Somany said.
Read the complete interview published in Ceramic World Review 133/2019