Euro Ceramics Sanitary Ware Unit Goes On Stream

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Euro Ceramics Limited, one of's largest manufacturer of Vitrified Tiles under the brand name Euro, has commenced commercial production of Sanitary-ware at its existing state-of-the-art plant at Bhachau with an annual capacity of 11,000 MTPA. The Sanitary Ware unit has been completely funded from the proceeds of the successful IPO made in Feb 07.

Says Nenshi Shah, Managing Director, Euro Ceramics Limited, "The sanitary ware market in is growing at about 15-18% annually. The major demand for tiles and sanitary ware is coming from IT/ITeS and Retailing sectors in addition to the housing sector. With an established brand name like Euro, our sanitary-ware project is expected to get off to a flying start."

Euro Ceramics is also undertaking capacity expansion to become a complete tiles solutions provider in the country. In addition to the 11,000 MTPA capacity of Sanitary-ware, Euro presently has an installed capacity of 79,971 tonnes p.a. of Vitrified tiles, 45,000 MTPA of Calcarious tiles and 1,800 tpa of Aluminium Extruded Sections. The company has plans to expand capacities in existing product categories and to also launch new generation products. The capital outlay for the entire expansion will be funded through internal accruals and debt.

Euro has certain inherent advantages vis-a-vis its competitors like strategic location of plant which is equidistant from the Kandla & Mundra port as also from the major markets of Mumbai & Delhi. This makes procuring of raw material and shipping of finished goods cheaper. Euro is also the only player in the Industry to have a captive power plant of 10MW which has enabled Euro to emerge as one of the lowest cost producers. ECL is a preferred vendor to Institutional Clients and Blue Chip Companies with more than 70% of its turnover coming from Institutional Clients.

ECL enjoys a high brand recall among Institutional Clients leading to significant repeat business from them. ECL is the only company in to offer Vitrified tiles, Wall tiles, Calcareous tiles and Sanitary-ware under one roof and meet all the needs of the customers. Thus, ECL is well poised to capitalize on the emerging opportunities in the construction space and to grow at a healthy pace in the coming years.