Asian Granito India gains on filing for rights issue worth Rs 500 cr

21 Mar 2022 , 10:49 AM

Asian Granito India has lined up mega expansion plan in value added luxury surfaces & bathware segments such as GVT Tiles, Sanitaryware and SPC Flooring segments through setting up new state-of-the-art manufacturing facilities at Morbi, Gujarat, under newly incorporated wholly owned subsidiaries.

The company is also setting up large display centres covering an area of approx. 1.5 lakh sq. feet at Morbi, Gujarat to showcase groups entire product range under single roof. The new manufacturing facilities are expected to commence commercial operations in April 2023.

The firm is setting up the display centre at Indias Ceramic Tiles hub – Morbi, Gujarat to showcase AGL Groups entire product range under single roof i.e. Tiles, Sanitaryware, Bathware, Quartz & Engineered Marble, SPC, etc. The five storey display centre is conceptualised in 1.5 lakh square feet of area and aims to showcase AGL Groups production, technological excellence and best in class sourcing caliber at single place and is also expected to enhance companys brand and reach. The total estimated cost for setting up the display centre is around Rs 40 crore.

The commercial operations in all the three wholly owned subsidiaries are expected to commence in the beginning of financial year 2023-24. In the first year of operation, Asian Granito India expects capacity utilisation ranging from 45-60% to be scaled up gradually. The company has estimated that total working capital requirement for all the three companies in the first year of commercial operations in 2023-24 will be around Rs 80 crore.

The company has filed draft papers (draft letter of offer) for rights issue of equity shares to raise up to Rs 500 crore ($70 million). The net proceeds of the rights issue shall be used for the proposed projects. Additionally, the firm also proposes to deploy the proceeds of the rights issue to meet general corporate purposes including other strategic initiatives, brand building and strengthening, marketing activities, and ongoing general corporate exigencies.

The net profit of Asian Granito India declined 28.67% to Rs 17.81 crore in the quarter ended December 2021 as against Rs 24.97 crore during the previous quarter ended December 2020. Net sales rose 13.57% to Rs 436.64 crore in the quarter ended December 2021 as against Rs 384.46 crore during the previous quarter ended December 2020.

Asian Granito India has emerged as Indias leading home decor brand. The company manufactures and markets wide range of tiles, engineered marble and quartz.

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