Cera Sanitaryware to invest Rs197 crore in sanitaryware, faucetware expansion; Stock zooms 4.5%

11 May 2022 , 12:10 PM

Cera Sanitaryware Ltd has informed that the Board of Directors at their meeting held on May 10, 2022 has approved the Project Capex for the expansion of Greenfiled Sanitaryware plant and Brownfield faucetware plant.

As per the filing, the present capacity of the Sanitaryware is 25 Lacs pieces p.a. and of Faucetware is 30 Lacs pieces p.a., which will vary from different products produced from time to time.

The Board of Directors has approved the capex of Rs197 crore for the company'sexpansion plans and the mode of financing will be from Internal Accruals only, no debt raising is envisaged, said company.

The rationale behind expansion is:

• To increase share of high end SKU's.
• To meet the quantity requirements for an expanding market over the medium term.
• To mitigate the risk of production disruption at single location.
• To achieve optimum cost of production by reducing overheads.

At around 12:07 PM, Cera Sanitaryware was trading at Rs4,009.30 apiece up by Rs171.3 or 4.46% from its previous closing of Rs3,838 apiece on the BSE.