Date:08/07/2006 URL: http://www.thehindu.com/2006/07/08/stories/2006070803411600.htm

Business

H&R Johnson to set up unit in Chennai

Staff Correspondent

Earmarks Rs. 200 cr. to fund capacity creation initiatives

CHENNAI: H&R Johnson (India) Limited, is setting up a cement concrete tile manufacturing unit in Chennai. This is part of the company's strategy to expand its product portfolio by diversifying into new product categories. The Chennai unit will have a daily production capacity of 6,000 sq ft. The company has earmarked a capital investment of Rs. 200 crore to fund its various capacity creation initiatives during the current fiscal, according to the Managing Director, H&R Johnson (India), Vijay Aggarwal.

Of the Rs. 200 crore investment proposed, the Chennai plant would cost about Rs. 10 crore. The balance would be split for various facilities that the company was planning to set up this year. It would be setting up two cement concrete tile units in Andhra Pradesh — one each in Hyderabad and Visakhapatnam. Similarly Bangalore and Kerala would have one each. A new tile unit was being set up in Rajasthan. There would be a floor unit capacity expansion in Vijayawada. The Rajkot vitrified plant capacity would be expanded.

Mr. Aggawal said the company had set an ambitious target of achieving Rs. 1,000 crore sales turnover.

It would be rolling out its cement concrete tile range with 24 brand new products. This range at present comprises designer interlocking cement tiles.

The company would be marketing these tiles under its exterior tiles brand, Endura. The new products were expected to contribute Rs. 10 crore to the company's topline during the current fiscal.