Somany Ceramics, one of the leading manufacturers of tiles in India, may hike the prices of tiles and sanitaryware in the coming days. However, the quantum of price hike or the timing of the hike could not be ascertained. In April, the company had effected nominal price hike for its wall tiles.
The company has recently signed the Bollywood Super Star as its brand ambassador and with that the company believes its pricing power has enhanced. Also, recent NGT order banning coal gasifiers and stricter vigilance under GST regime have taken away the pricing advantage enjoyed by the unorganised sector. Thus, the company believes days of price undercutting by the unorganised players have gone.
The company’s JV company in Andhra commissioned 3.5 MSM GVT plant in March, 2019 and it is expected to reach 100% utilisation in the second half of the current financial year. Secondly, Somany is upgrading Kadi plant with Rs 30 crore capex plan to augment manufacturing of value-added products and is expected to be operational by November, 2019.
The management aims to improve its product portfolio by taking the contribution of GVT tiles to 25-26% of the product mix in the current financial year from 21% in the previous year. To increase its focus on the GVT segment, it has created separate heads for PVT and GVT segments.